U.S. Bancorp (USB Quick QuoteUSB - Free Report) reported fourth-quarter 2023 earnings per share of 99 cents, which met the Zacks Consensus Estimate. Results were aided by higher fee income and lower provision for credit losses compared with the year-ago quarter.

U.S. Bancorp Price, Consensus and EPS Surprise

U.S. Bancorp price-consensus-eps-surprise-chart | U.S. Bancorp Quote

Currently, U.S. Bancorp carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

Higher Fee Income & Lower Provision for Credit Losses Aid Results

Non-interest income grew 28.2% year over year to $2.62 billion in the fourth quarter of 2023. The uptick was driven by an increase in all fee income components. The company’s inorganic growth moves have opened new markets and added alternative revenue sources, supporting its non-interest income.

Apart from growth in fee income, provision for credit losses fell 57% to $512 million in the fourth quarter of 2023 from the year-earlier quarter. This also supported the bottom line. The downtick was likely aided by the fading recession risks.

Higher Expenses & Decline in NII Dampens Results

Non-interest expenses climbed 29.1% year over year to $5.22 billion in the fourth quarter. The rise was due to an increase in almost all cost components, except for costs related to professional services and other expenses.

The tax-equivalent net interest income (NII) totaled $4.14 billion, down 4.2% from the year-ago levels. The decrease was primarily due to the impact of deposit mix and pricing, partially offset by the acquisition of MUFG Union Bank and higher rates on earning assets. Also, the net interest margin of 2.78% contracted 23 basis points year over year.

A rise in expense base and a decline in NII majorly hurt U.S. Bancorp’s bottom line, which reflected in a 17.5% year-over-year dip.

Earnings Release Dates of Other Banks

Bank of Hawaii Corporation (BOH Quick QuoteBOH - Free Report) is slated to announce fourth-quarter 2023 results on Jan 22.

Over the past seven days, the Zacks Consensus Estimate for BOH’s quarterly earnings has moved 2.3% up to 89 cents per share. The estimate indicates a 40.7% decrease from the prior-year quarter.

East West Bancorp (EWBC Quick QuoteEWBC - Free Report) is scheduled to release fourth-quarter 2023 numbers on Jan 23.

Over the past 30 days, the Zacks Consensus Estimate for EWBC’s quarterly earnings has moved 1.6% down to $1.89 per share. The figure implies a 20.3% decline from the prior-year quarter.