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U.S. Bancorp Posts Smaller 3Q Profit

By Matt Grossman

U.S. Bancorp on Wednesday posted a slimmer profit year over year in the latest quarter as lower net interest income and higher expenses during the coronavirus pandemic offset strength in fee-based businesses.

The Minneapolis-based bank-holding company for U.S. Bank logged a third-quarter profit of $1.58 billion, or 99 cents a share, compared with a profit of $1.82 billion, or $1.15 a share, in the same three-month period a year earlier.

Analysts surveyed by FactSet had forecast a profit of 91 cents a share.

Net interest income was $3.23 billion in the third quarter, down from $3.28 billion in last year's third quarter. Non-interest income rose to $2.71 billion, from $2.61 billion last year. Analysts had forecast net interest income of $3.2 billion, and non-interest income of $2.53 billion.

The bank company's provision for credit losses in the quarter was $635 million, compared with $1.74 billion in the second quarter of 2020. Average total deposits grew 15.9% year over year, while average total loans grew 6.4% year over year.

Write to Matt Grossman at matt.grossman@wsj.com

(END) Dow Jones Newswires

October 14, 2020 07:25 ET (11:25 GMT)

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