US Bancorp (NYSE:USB) stock rose 1.52% (As on April 17, 11:28:12 AM UTC-4, Source: Google Finance) after the company posted higher than expected results for the first quarter of FY25, helped by higher trust and investment management fees. Provision for credit losses fell to $537 million from $553 million in the prior-year quarter, mainly boosted by improved credit quality and portfolio mix. Net interest income, on a taxable-equivalent basis, inclined 2.7% to $4.12 billion, aided by a combination of earning assets, fixed asset repricing and “modest” loan growth, the lender said. Noninterest income advanced 5% to $2.84 billion, reflecting higher payment services revenue and trust and investment management fees. US Bancorp reported a 6.1% rise in trust and investment management fees to $680 million during the quarter ended March 31. It expects fee income to grow in mid-single digits in medium term. Net income attributable to U.S. Bancorp was $1,709 million for the first quarter of 2025, $390 million higher than the $1,319 million for the first quarter of 2024 and $46 million higher than the $1,663 million for the fourth quarter of 2024. . The net interest margin increased to 2.72 percent in the first quarter of 2025 from 2.70 percent in the first quarter of 2024. Average total loans for the first quarter of 2025 were $8.0 billion (2.1 percent) higher than the first quarter of 2024. The increase was primarily due to higher total commercial loans (7.2 percent), residential mortgages (2.8 percent) and credit card loans (5.2 percent), partially offset by lower total commercial real estate loans (7.8 percent) and total other retail loans (4.4 percent).

Meanwhile, US Bancorp in January had appointed Gunjan Kedia as its chief executive officer — the first woman in the bank’s history to take up the role. She is a successor to Andy Cecere and started in the position on April 15.

USB in the first quarter of FY25 has reported the adjusted earnings per share of $1.03, beating the analysts’ estimates for the adjusted earnings per share of 99 cents, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 35.9 percent to $6.96 billion in the first quarter of FY25, beating the analysts’ estimates for revenue by 0.60%.

For the current quarter, the bank expects taxable-equivalent net interest income to be in a range of $4.1 billion to $4.2 billion, the presentation showed. The Street is looking for net interest income of $4.2 billion. Noninterest income is pegged at about $2.9 billion, while analysts are currently estimating the metric at $2.93 billion.