USB US Bancorp

By Austen Hufford 

U.S. Bancorp said profit and revenue increased in its fourth quarter on higher loans.

The results came just after the company said Tuesday that Chief Executive Richard Davis would step down and be succeeded by Andrew Cecere, the firm's president and chief operating officer, in a long-signaled succession at the Minneapolis-based bank.

The bank, the seventh-largest in the U.S. by assets and the largest regional bank, posted earnings of $1.48 billion, up slightly from the prior-year period. On a per-share basis, earnings rose to 82 cents from 80 cents.

Revenue, a combination of net interest income and fee-based income, rose 4.3% to $5.44 billion. Analysts had expected 81 cents a share in earnings and $5.36 billion in revenue, according to Thomson Reuters.

Results in the quarter were driven by loan growth and increased fee-based revenue -- with higher payment-services revenue, trust and investment management fees and mortgage banking revenue -- which were partially offset by higher expenses linked to increased compensation.

Fee-based revenue grew 3.9% and was also helped by increased card revenue and increased merchant processing fees.

At the Minneapolis-based bank's average total loans grew 6.2% from last year as average total deposits grew 11.8%.

Net interest margin, an important measure of lending profitability, fell from last year to 2.98% from 3.06%, but was unchanged from the previous quarter.

Shares, which have increased 17% in the last three months, were inactive in premarket trading.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

January 18, 2017 07:39 ET (12:39 GMT)

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