U.S. Bancorp disclosed its quarterly financial results, which included revenue of $6.7 billion, marking a 6.4% decline compared to the previous year. The adjusted earnings per share stood at 90 cents, surpassing the anticipated 88 cents per share. Despite the revenue decrease, non-interest income experienced growth, reaching $2.7 billion, a 7.7% increase year over year.
The net interest margin for U.S. Bancorp contracted to 2.70%, a 40 basis points reduction from the previous year. The total allowance for credit losses grew to $7.9 billion, up by 5.1% year over year. Additionally, the company's non-performing assets as of March 31, 2024, amounted to $1.79 billion, showing a 51.2% increase from the corresponding period in the previous year. The company's CEO, Andy Cecere, mentioned that the diluted earnings per share of $0.90 excluded some notable items, including charges related to mergers and integration, and an expected rise in the FDIC special assessment.
Following the earnings announcement, U.S. Bancorp adjusted its guidance for the fiscal year 2024, lowering the expected net interest income range to $16.1 billion-$16.4 billion, down from the initial forecast of $16.6 billion and above. Looking ahead to the second quarter, the company anticipates net interest income to remain relatively stable sequentially. In response to the earnings report, U.S. Bancorp's shares experienced a 0.2% decline, trading at $39.43 on Thursday. Various analysts made revisions to their price targets for U.S. Bancorp, with changes in ratings and price expectations.