US Bancorp delivers solid earnings with better credit results and lower costs

In the third quarter, net interest income from loans and investments increased compared to the second quarter but fell 2.4% year over year to $4.17 billion. The decline was mainly due to the impact of higher deposit rates.

Noninterest income, mostly from fees, also fell 2.4% year-over-year to $2.7 billion. The decline meant the bank did not enjoy a repeat of the second quarter's surprise rise. Fee income had previously fallen for five quarters in a row.

Nevertheless, the quarter contained good news.

While overall noninterest income fell, the bank saw double-digit increases in fees from trading and investment products and “achieved good year-over-year growth in revenue from trust and investment management, payment services, mortgage banking and treasury management fees.” Cecere told analysts, adding that the bank also benefited from improved market conditions and expanded distribution channels.

Cecere and Chief Financial Officer John Stern noted that the bank remains committed to balancing its capital growth and expects to resume share repurchases soon.

During the quarter, the bank announced a new strategic partnership to serve Edward Jones customers with select card and credit card solutions. The company also announced the acquisition of Salucro Healthcare Solutions, a healthcare financial technology provider focused on online patient payments and billing.