U.S. Bancorp (NYSE: USB) clocked a first-quarter total net revenue increase of 28.2% year-over-year to $7.18 billion, beating the consensus of $7.12 billion.
Net interest income jumped 46% to $4.63 billion, while noninterest income rose 4.6% to $2.51 billion.
Provision for credit losses in the quarter under review jumped to $427 million, compared with $112 million in the year-ago period. This was driven by the acquisition of MUB and continued economic uncertainty.
While credit quality factors have performed better than pre-pandemic levels, the changing economic outlook contributes to increased provision for credit losses.
The company registered average total loan growth of 23.6% Y/Y and 7.5% sequentially.
Adjusted earnings per share totaled $1.16, compared with $0.99 a year ago. Adjusted EPS soared 17.2% Y/Y and topped the Street view of $1.12.
The net interest margin in the first quarter of 2023 was 3.10%, compared with 2.44% in the first quarter of 2022, primarily due to the impact of higher rates on earning assets and the acquisition of MUB.
“Our common equity tier 1 capital ratio ended the quarter at our target level of 8.5%, and we expect that ratio to expand over the next several quarters as we realize the accretive benefit of recently acquired Union Bank”, Chairman, President and CEO, Andy Cecere said.
Price Action: USB shares are trading higher by 1.05% at $35.56 during the premarket session on the last check Wednesday.
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This article U.S. Bancorp Q1 Earnings Top Street View, Net Interest Income Jumps 46% originally appeared on Benzinga.com
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Source: https://finance.yahoo.com/news/u-bancorp-q1-earnings-top-135058518.html