U.S. Bancorp Reports Fourth-Quarter Earnings

U.S. Bancorp Reports Fourth-Quarter Earnings

U.S. Bancorp (NYSE: USB), an American bank holding company, reported fourth-quarter earnings Wednesday, which ultimately missed analysts’ expectations as well as revenue that fell short. Nevertheless, the company’s profit rose 10% within the quarter, amounting to USD1.67 Billion in comparison to the previous year’s USD1.52 Billion.

The Minneapolis-based company reported earnings of USD1.07, compared to the expected USD1.10. Revenue reached USD5.66 Billion, lower than analysts anticipated USD5.74 Billion. The plunge was attributed to the lower loan spreads and a mix of earning assets. 

U.S. Bancorp shares have risen 3% within 2022, slightly down from its 52 week high of USD63.57 on January 13. Amid lower mortgage banking revenue, U.S. Bank’s total revenue has fallen 1.2%. Furthermore, net interest income fell 1.6%, while non-interest income tumbled 0.6%.

According to a statement from U.S. Bancorp CEO, Andy Cecere, credit quality is strong at the moment with its net charge-off ratio at a record low of 17 basis points within the fourth quarter.   

“As we start a new year, we are encouraged by the momentum building in each of our lines of business,” he said. “The investments we have made in our digital transformation and payments ecosystem initiatives will continue to enable customer and revenue growth and we expect continued momentum in customer spend activity and loan growth.”

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