We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
U.S. Bancorp (USB) Q4 Earnings Meet on Higher Fee Income
Read MoreHide Full Article
U.S. Bancorp (USB - 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.
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 - 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 - 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.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
U.S. Bancorp (USB) Q4 Earnings Meet on Higher Fee Income
U.S. Bancorp (USB - 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 - 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 - 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.