U.S. Bancorp (USB) has reported a 6.28 percent rise in profit for the quarter ended Mar. 31, 2017. The company has earned $1,473 million, or $0.82 a share in the quarter, compared with $1,386 million, or $0.76 a share for the same period last year.
Revenue during the quarter grew 5.91 percent to $4,929 million from $4,654 million in the previous year period. Net interest income for the quarter rose 3.88 percent over the prior year period to $2,945 million. Non-interest income for the quarter rose 8.38 percent over the last year period to $2,329 million.
U.S. Bancorp has made provision of $345 million for loan losses during the quarter, up 4.55 percent from $330 million in the same period last year.
Net interest margin contracted 3 basis points to 3.03 percent in the quarter from 3.06 percent in the last year period. Efficiency ratio for the quarter deteriorated to 55.60 percent from 54.60 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
U.S. Bancorp president and chief executive officer Andy Cecere said, "U.S. Bancorp once again delivered industry-leading returns and profitability in the first quarter of 2017 as we leveraged our diverse business platform and our investments in innovation to deliver the entire bank to our customers in the ways they want to interact with us. We strive to continually improve upon our best-in-class performance, and we are well positioned to do so against the backdrop of an evolving economic and regulatory environment."
Liabilities outpace assets growth
Total assets stood at $449,522 million as on Mar. 31, 2017, up 4.87 percent compared with $428,638 million on Mar. 31, 2016. On the other hand, total liabilities stood at $401,089 million as on Mar. 31, 2017, up 5.21 percent from $381,245 million on Mar. 31, 2016. Deposits stood at $336,873 million as on Mar. 31, 2017, up 9.96 percent compared with $306,348 million on Mar. 31, 2016.
Noninterest-bearing deposit liabilities were $85,222 million or 25.30 percent of total deposits on Mar. 31, 2017, compared with $80,407 million or 26.25 percent of total deposits on Mar. 31, 2016.
Investments stood at $110,424 million as on Mar. 31, 2017, up 3.18 percent or $3,399 million from year-ago. Shareholders equity stood at $48,433 million as on Mar. 31, 2017, up 2.19 percent or $1,040 million from year-ago.
Return on average assets moved up 3 basis points to 1.35 percent in the quarter from 1.32 percent in the last year period. At the same time, return on average equity increased 30 basis points to 13.30 percent in the quarter from 13 percent in the last year period.
Credit quality improves
U.S. Bancorp recorded an improvement in credit quality during the quarter. Nonperforming assets moved down 13.03 percent or $224 million to $1,495 million on Mar. 31, 2017 from $1,719 million on Mar. 31, 2016. Nonperforming assets to total loans was 0.55 percent in the quarter, down from 0.65 percent in the last year period. Book value per share was $25.05 for the quarter, up 5.16 percent or $1.23 compared to $23.82 for the same period last year.
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