US Bancorp forecast net interest income for the current financial year below analysts’ estimates. The indicator should fluctuate between $17.5 billion and $18.0 billion, versus an expected average of $18.1 billion, according to data from Refinitiv.
All this, despite a sharp increase in interest rates by the Federal Reserve, which led to a significant increase in interest income collected on loans. The bank’s NII for the quarter ended June 30 rose to $4.45 billion, compared with $3.46 billion a year earlier.
US Bancorp reported earnings per share of $1.12, in line with analyst expectations. However, total average deposits were $497.27 billion, down 2.6% from the prior quarter but up 9% from the prior year. The bank also set aside $821 million for non-performing loans, compared with $311 million a year earlier.