U.S. Bancorp (USB), a leading American bank holding company, is seeing its shares trend higher today following the announcement of better-than-anticipated second-quarter financial results.
USB’s Q2 Numbers
USB’s revenue declined by 4.6% year-over-year to $6.87 billion. Still, the figure came in ahead of expectations by $60 million. Additionally, its EPS of $0.97 exceeded estimates by $0.02.
During the quarter, USB’s net interest income declined to $4,052 million from $4,449 million in the year-ago period. Its noninterest income, in contrast, improved to $2,815 million from $2,726 million a year ago. The total net income attributable to USB stood at $1,603 million during this period.
The company’s average total loans contracted to $374.7 billion from $388.8 billion a year ago. Its average total deposits, on the other hand, ballooned to $513.9 billion from $497.3 billion a year ago. Importantly, USB continues to witness positive momentum in its deposit growth and fee income platform. Sequentially, the company’s CET1 ratio increased by 40 basis points to 10.3%. Furthermore, its return on common equity improved to 12.6% from 11.6% in Q1.
Promising Outlook
For the full year, USB estimates net interest income in the range of $16.1 billion to $16.4 billion. Total noninterest income for the year is seen rising in the mid-single digits. The promising outlook has buoyed investor sentiment in the stock today.
Is USB a Good Stock to Buy?
Shares of the company are up by nearly 29% over the past year. Overall, the Street has a Moderate Buy consensus rating on U.S. Bancorp, alongside an average USB price target of $46.13. However, analysts’ views on the company could see changes following today’s earnings report.
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