U.S. Bancorp(NYSE: USB) in the first quarter of FY 17 has reported 3.7 percent growth in the net interest income year-over-year and has fallen slightly on a linked quarter basis due to fewer days in the quarter. The company has posted the net interest margin of 3.03 percent for the first quarter of 2017, which is a decrease of 3 basis points from the first quarter of 2016, due to loan mix and reinvestment yields, and grew 5 basis points over the fourth quarter of 2016, due to the favorable impact of higher interest rates.
Furthermore, the noninterest income grew 8.4 percent on a year-over-year basis as the payment services revenue increased 4.9 percent led by credit and debit card revenue growth of 9.8 percent. The trust and investment management fees grew 8.6 percent and the mortgage banking revenue grew 10.7 percent in the first quarter of FY 17.
U.S. Bancorp in the first quarter of FY 17 has reported the adjusted earnings per share of $0.82, beating the analysts’ estimates for the adjusted earnings per share of $0.80. The company had reported the adjusted revenue of $5.27 billion in the first quarter of FY 17, missing the analysts’ estimates for revenue of $5.29 billion. U.S. Bancorp has reported the net income of $1,473 million for the first quarter of 2017, compared with $1,386 million, in the first quarter of 2016.
USB’s average total loans have grown 4.1 percent over the first quarter of 2016 and 0.2 percent linked quarter. The nonperforming assets have decreased 13.0 percent in 1Q 2017 on a year-over-year basis and 6.7 percent on a linked quarter basis.
Moreover, at March 31st, 2017, the total USB shareholders’ equity was $47.8 billion compared with $47.3 billion at December 31st, 2016, and $46.8 billion at March 31st, 2016. During the first quarter 2017, the company has returned 78 percent of earnings to shareholders through dividends and share buybacks.
U.S. Bancorp has a strong capital position and as at March 31st, 2017, the estimated common equity tier 1 capital to risk-weighted assets ratio was 9.2 percent using the Basel III fully implemented standardized approach and was 11.5 percent using the Basel III fully implemented advanced approaches method.
U.S. Bancorp stock has risen 21.17% in the last one year (source: Google Finance) and trading on a positive note this morning rising over 0.5% (as of 9:50AM EDT on April 19th, 2017; Source: Google finance)