US Bancorp's loan revenue beat estimates in the third quarter

(Bloomberg) — US Bancorp (USB) posted net interest income that beat analysts' estimates as fixed-income assets in its portfolio benefited from higher borrowing costs.

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According to a statement Wednesday, the Minneapolis-based bank reported $4.14 billion in NII – what it generates from lending, less payments on deposits – in the third quarter. That beat analysts' estimates of nearly $4.04 billion.

The results follow results from banks including mid-sized peer PNC Financial Services Group Inc. (PNC) and larger Wall Street rival JPMorgan Chase & Co. (JPM), both of which posted 50 basis points more NII following the Fed's rate cut revenue than analysts expected last month, the first time in more than four years.

Citizens Financial Group Inc. (CFG) also reported earnings on Wednesday, with net interest income of $1.37 billion and deposits of $175.2 billion, both just shy of analysts' estimates.

Investors are eager for an early glimpse into the impact of the Federal Reserve's policy shift. The NII metric is particularly important for regional lenders that lack the robust sales and trading operations of their larger competitors.

“Net interest income and margin increased on a quarterly basis, benefiting from credit mix, continued repricing of fixed income assets and disciplined liability management,” PNC Chief Executive Officer Andy Cecere said in the statement.

The bank's shares are up about 8.6% this year, compared with a 25% rise for the S&P 500 Financials Index.

In the third quarter, PNC's loans totaled $374 billion, falling short of estimates of $377 billion.

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