U.S. Bancorp (USB) reported third quarter earnings per share of $0.99, compared to $1.15, a year ago. On average, 22 analysts polled by Thomson Reuters expected the company to report profit per share of $0.91, for the quarter. Analysts' estimates typically exclude special items. The company said the decline in net income year-over-year was primarily due to lower net interest income as well as increases in expenses and the provision for credit losses driven by higher net charge-offs and the acquisition of the State Farm credit card portfolio in the third quarter of 2020, partially offset by an increase in noninterest income.
Third quarter total net revenue was $5.96 billion, up 0.7 percent from previous year. Analysts expected revenue of $5.71 billion, for the quarter. Net interest income on a taxable-equivalent basis was $3.25 billion, down 1.6 percent. The company said the decrease was principally driven by the impact of lower rates from a year ago, partially offset by deposit and funding mix as well as loan growth. Noninterest income was $2.71 billion, 3.7 percent higher reflecting higher credit and debit card revenue, growth in trust and investment management fees, and strong mortgage banking revenue and commercial products revenue.
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