U.S. Bancorp (USB) reported second quarter earnings per share of $0.41, compared to $1.09, a year ago. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $0.22, for the quarter. Analysts' estimates typically exclude special items. Net income attributable to U.S. Bancorp was $689 million, down 62.2 percent from prior year. Net income applicable to common shareholders declined to $614 million from $1.74 billion.
The company said the decrease in net income year-over-year was primarily due to an increase in the provision for credit losses driven by deteriorating economic conditions caused by the impact of COVID-19 on the U.S. and global economies. The company's provision for credit losses for the second quarter of 2020 was $1.737 billion, which was $1.372 billion higher than previous year. The provision for the second quarter of 2020 reflects a $1.300 billion increase in the allowance for credit losses to recognize the expected losses from the deteriorating economic conditions.
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