U.S. Bancorp Stock Is Trading Above Its Near-Term Potential

U.S. Bancorp Stock Is Trading Above Its Near-Term Potential

Share to Linkedin In the recently reported first-quarter FY2021 results, U. S. Bancorp reported revenues of $5. 4 billion - 5% less than the year-ago period. The wholesale banking revenues dropped by 12% y-o-y followed by a 2% drop in the consumer banking business. Notably, the bank's net interest income suffered a 5% drop in the quarter due to lower outstanding loan balances and a lower interest rate environment. Additionally, USB's profitability figures received a big boost in Q1 due to a drop in provisions for credit losses from $993 million to -$827 million in the quarter. This improved the EPS figure from $0. 72 to $1. 45. While U. S. Bancorp outperformed the earnings estimates in its recently released fourth-quarter results, its revenues were slightly below the mark. It reported total revenues of $5. 7 billion - 1% more than the year-ago period. Its wholesale banking revenues dropped by 3% y-o-y followed by a 9% drop in payments service and a 7% decline in the wealth management segment. However, 11% growth in the consumer banking division was able to tilt the scale in the favor of positive growth. Similarly, USB's full-year 2020 revenues grew 1. 5% y-o-y to $23.