U.S. Bancorp (NYSE:USB) delivered better than expected results for the first quarter. Both its earnings, as well as, the top line came in above the Street analysts’ expectations. The results topped despite compression in net interest margin of 3.03 percent versus 3.06 percent in the year-ago quarter though there was 25 basis points interest rate hike.
U.S. Bancorp reported net income of $1.473 billion or 82 cents a share for the first quarter. In the year-ago quarter, it was $1.386 billion or 76 cents a share. The latest quarter results topped expectations of 80 cents a share.
The company’s total net revenue grew 5.7 percent to $5.32 billion from $5.037 billion in the previous year period. Analysts predicted revenue of $5.29 billion. While net interest income advanced 3.9 percent, non-interest income increased 8.4 percent. Provision for credit losses widened to $345 million from $330 million in the corresponding period of last year.
Commenting on the results, U.S. Bancorp President and CEO, Andy Cecere, said, “U.S. Bancorp once again delivered industry-leading returns and profitability in the first quarter of 2017 as we leveraged our diverse business platform and our investments in innovation to deliver the entire bank to our customers in the ways they want to interact with us. We strive to continually improve upon our best-in-class performance, and we are well positioned to do so against the backdrop of an evolving economic and regulatory environment”.
On Tuesday, the stock edged down 1.46 percent in regular market hours.