U.S. Bancorp Posts Drop in 1Q Profit on Revenue, Provision for Credit Losses Hit

By Sabela Ojea

U.S. Bancorp said first-quarter profit dropped in the latest quarter due to lower revenue and an increase in its provision for credit losses.

The Minneapolis-based parent company of U.S. Bank on Wednesday posted a net income of $1.33 billion, or 78 cents a share, compared with $1.70 billion, or $1.04 a share, for the same period a year earlier. Adjusted earnings were 90 cents, beating analysts expectations of 88 cents.

Revenue dropped 6.4% to $6.72 billion. Analysts polled by FactSet had forecast revenue of $6.71 billion.

The regional lender provisioned increased its provision for credit losses to $553 million from $512 million in the fourth quarter, and $427 million for the same period a year earlier.

U.S. Bancorp ended the quarter with a common equity Tier 1 ratio--a key measure of balance-sheet strength--of 10% from 9.9% as of December 31, 2023.

Write to Sabela Ojea at [e-mail]; @sabelaojeaguix

(END) Dow Jones Newswires

04-17-24 0722ET