S&P 500 (NYSE:SPY) component US Bancorp (NYSE:USB) reported net income above Wall Street’s expectations for the second quarter. U.S. Bancorp is a financial holding company that provides financial services through its subsidiaries, including lending and depository services, cash management, foreign exchange and trust and investment management services.
US Bancorp Earnings Cheat Sheet for the Second Quarter
Results: Net income for the bank rose to $1.2 billion (60 cents per share) vs. $766 million (45 cents per share) in the same quarter a year earlier. This marks a rise of 57% from the year earlier quarter.
Revenue: Noninterest income was $2.15 billion last quarter.
Actual vs. Wall St. Expectations: USB beat the mean analyst estimate of 53 cents per share.
Quoting Management: U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “Our second quarter results clearly illustrate our Company’s continuing ability to produce solid, repeatable, and high quality earnings in a challenging environment. Diluted earnings per common share of $.60 were 33.3 percent higher than the prior year’s quarter and 15.4 percent higher than the prior quarter and were driven by revenue growth and improving credit costs. Our industry-leading performance metrics, including a return on average assets of 1.54 percent, a return on average common equity of 15.9 percent and an efficiency ratio of 51.6 percent, continue to move us closer to our long term normalized targets, demonstrating the through-the-cycle strength of our franchise and business model.”
The company has now topped analyst estimates for the last four quarters. It beat the mark by 3 cents in the first quarter, by one cent in the fourth quarter of the last fiscal year, and by 2 cents in the third quarter of the last fiscal year.
Competitors to Watch: Bank of America Corp. (NYSE:BAC), Wells Fargo & Company (NYSE:WFC), JPMorgan Chase & Co. (NYSE:JPM), Citigroup Inc. (NYSE:C), Comerica Incorporated (NYSE:CMA), Zions Bancorporation (NASDAQ:ZION), Pinnacle Financial Partners (NASDAQ:PNFP), Regions Financial Corp. (NYSE:RF), Goldman Sachs Group, Inc. (NYSE:GS), and Capitol Bancorp Ltd. (NYSE:CBC).
(Source: Xignite Financials)