- USB reports second-quarter earnings of 71 cents a share, beating the consensus estimate of 70 cents.
- Net interest income increases, but second-quarter net interest margin declines slightly from the first quarter, to 3.58%.
- Noninterest income increases 5% sequentially, with strong mortgage, card, and merchant processing revenue.
Updated with comments from Jefferies analyst Ken Usdin and FBR analyst Paul Miller, and also with market close information.
NEW YORK (TheStreet) -- U.S. Bancorp (USB) of Minneapolis on Wednesday reported that its second-quarter noninterest income grew by over 5% from the second quarter, as the company saw revenue increase across the board.
The company reported second-quarter earnings of $1.4 billion, or 71 cents a share, beating the consensus estimate among analysts polled by Thomson Reuters by one cent. Earnings increased from $1.3 billion, or 67 cents a share, in the first quarter, and $1.2 billion, or 60 cents a share, during the second quarter of 2011.USB's shares rose 2% to close at $33.48. U.S. Bancorp reported net second-quarter revenue of $5.1 billion, increasing 3% from the previous quarter, and 8% from a year earlier. Second-quarter net interest income grew 1% from the first quarter and 7% year-over-year, to $2.7 billion, although the net interest margin -- the bank's average yield from loans and investments less its average cost for deposits and borrowings -- narrowed to 3.58% during the second quarter, from 3.60% the previous quarter and 3.67% a year earlier, in line with the industry trend in the prolonged low-rate environment. The company's total noninterest income increased 5% sequentially and 10% year-over-year, to $2.4 billion during the second quarter. Credit and debit card revenue was down 18% year, because of the implementation of the Durbin Amendment's caps on debit card interchange fees during the fourth quarter of last year, but these revenues grew 16% sequentially during the second quarter, to $235 million. Mortgage banking revenue showed continued strength as the wave of mortgage loan refinancing continued, increasing to $490 million during the second quarter, from $452 million in the first quarter, and $239 million during the second quarter of 2011. U.S. Bancorp also saw its merchant processing fee revenue grow to $359 million during the second quarter, from $337 million the previous quarter, and $338 million a year earlier. Average total loans increased 2% sequentially and 8% year-over-year to $214.1 billion during the second quarter. Average commercial loans grew 6% during the second quarter, with annual growth of over 23% to $54.4 billion. Average second-quarter commercial mortgage loan balances increased 2% during the second quarter and 8% from a year earlier, to $30.6 billion.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV