US Bancorp (NYSE:USB) stock rose 0% (As on January 17, 11:22:48 AM UTC-4, Source: Google Finance) after the company posted mixed result for the fourth quarter of FY 24. Net income attributable to U.S. Bancorp was $1,663 million for the fourth quarter of 2024, $816 million higher than the $847 million for the fourth quarter of 2023 and $51 million lower than the $1,714 million for the third quarter of 2024. The increase in net income attributable to U.S. Bancorp year-over-year was primarily due to higher total net revenue and lower noninterest expense driven by higher notable items in the prior year quarter, partially offset by an increase in the provision for credit losses. Excluding notable items, pretax income in the fourth quarter of 2024 increased 3.8 percent compared with a year ago. Net interest income increased 0.8 percent on a year-over-year taxable-equivalent basis, due to higher rates on earning assets and balance sheet growth, partially offset by higher funding costs driven by interest rates on deposits, mix and pricing. The net interest margin decreased to 2.71 percent in the fourth quarter of 2024 from 2.78 percent in the fourth quarter of 2023.

Moreover, average total loans for the fourth quarter of 2024 were $2.8 billion (0.8 percent) higher than the fourth quarter of 2023. The increase was primarily due to higher total commercial loans (3.3 percent), residential mortgages (2.8 percent) and credit card loans (6.1 percent), partially offset by lower total commercial real estate loans (7.3 percent) and total other retail loans (5.4 percent). Average total deposits for the fourth quarter of 2024 were $9.5 billion (1.9 percent) higher than the fourth quarter of 2023. Average noninterest-bearing deposits decreased $7.7 billion (8.5 percent) reflecting balance decreases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking. Average total savings deposits were $13.4 billion (3.7 percent) higher year-over-year driven by increases within Wealth, Corporate, Commercial and Institutional Banking and Consumer and Business Banking.

USB in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.07, beating the analysts’ estimates for the adjusted earnings per share of $1.06, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 3.7 percent to $6.98 billion in the fourth quarter of FY 24, missing the analysts’ estimates for revenue by 0.6%.

Management projects the first quarter 2025 NII to be stable compared with the fourth quarter 2024 figure of $4.18 billion. Also, total non-interest expenses for first quarter 2025 is expected to be stable compared with the fourth quarter 2024 reported level.