Despite Falling Profits, U.S. Bancorp's Q2 Earnings Were Actually Better Than Q1

despite falling profits u s bancorps q2 earnings were actually better than q1

Sumary of Despite Falling Profits, U.S. Bancorp's Q2 Earnings Were Actually Better Than Q1:

  • While loan growth is still lagging, fee income bounced back nicely and the bank continued to manage expenses well amid a challenging environment.
  • This capital from reserves essentially goes back onto the income statement as profits.
  • Not factoring in reserves, operating income (total revenue minus expenses) at the bank grew by nearly 15% in the second quarter from the first quarter.
  • Average loan balances were flat quarter over quarter, but net interest income grew 2.4% from the first quarter of the year.
  • The main source of revenue growth in the quarter came from the bank’s fee income business segments, which reported revenue that grew 10% from the first quarter of the year and was slightly up on a year-over-year basis.
  • A good quarter of expense management Expenses have been a big area of focus in the financial sector in the second quarter, with many large banks turning in elevated expenses as they try to strip away COVID-related expenses and get back to more normal expense run rates in the current low-interest rate and challenging revenue environment.
  • CFO Terrence Dolan said that the bank plans to manage expenses flat going forward, despite the challenging revenue environment, and he anticipates more consistent positive operating leverage in a more normalized revenue environment.
  • Getting back to business as usual This quarter was much more consistent with the type of earnings U.S. Bancorp normally reports.

Want to know more click here go to source.

From -

Generic selectors
Exact matches only
Search in title
Search in content

Site Language

By continuing to use the site, you agree to the use of cookies. more information

The cookie settings on this website are set to "allow cookies" to give you the best browsing experience possible. If you continue to use this website without changing your cookie settings or you click "Accept" below then you are consenting to this.