Bancorp Profits Rise in Q3 Thanks to Credit and Guarantees Performance
By Dave Sébastien
US Bancorp said its profit for the third quarter increased due to a decrease in provisions for credit losses resulting from a release of reserves as the global economy improved, as well as a strong performance of the credit and guarantees.
The Minneapolis-based banking company, the parent company of US Bank, reported net income attributable to the company of $ 2.03 billion on Thursday, up from $ 1.58 billion in the same period last year. Earnings were $ 1.30 per share, up from 99 cents per share the year before. Analysts polled by FactSet were expecting $ 1.15 per share.
Net interest income was $ 3.17 billion, down from $ 3.23 billion for the comparable period last year. Analysts were expecting $ 3.18 billion. The measure fell due to changes in the composition of the loan portfolio and declining average loan balances, mainly due to commercial loan repayments by corporate clients accessing capital markets and the Bank’s Check Protection Program. payroll from the Small Business Administration, the company said.
Net sales amounted to $ 5.89 billion, compared to $ 5.96 billion the previous year. Analysts were looking for $ 5.76 billion.
The allowance for credit losses was a benefit of $ 163 million, compared to $ 635 million set aside for possible bad debts during the prior year period. Net write-offs were $ 147 million, up from $ 515 million in the third quarter of 2020.
In 2021, the company said additional government stimulus, widespread availability of vaccines in the United States, and lower levels of new cases of the virus have contributed to the economic recovery. But economic uncertainty remains linked to rising inflationary concerns, additional virus variants and the lack of a clear path to government funding, the company said.
Write to Dave Sebastian at [email protected]