US Bancorp Q2 revenue beats estimates on strong loan growth

U.S. Bancorp

U.S. Bancorp

USB

0.00


Overview

  • US banking group's Q2 revenue beat analyst expectations, net income and EPS rose yr/yr

  • Company's results driven by higher net interest income, loan growth, and BTIG acquisition

  • US Bancorp completed BTIG acquisition, boosting fee revenue and expanding capital markets capabilities


Outlook

  • Company did not provide specific guidance for upcoming quarters or full-year results in the press release


Result Drivers

  • LOAN GROWTH - Co said net interest income rose 7.5% yr/yr, driven by loan growth, improved asset mix, and benefits from fixed asset repricing

  • BTIG ACQUISITION - Noninterest income rose 13.7% yr/yr, reflecting higher fee revenue and contribution from BTIG acquisition

  • COMMERCIAL LOANS - Average total loans rose 7.1% yr/yr, driven by growth in commercial loans, commercial real estate loans, and credit card loans


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 Revenue

Beat

$7.71 bln

$7.58 bln (11 Analysts)

Q2 EPS

$1.35

Q2 Net Income

$2.18 bln

Q2 CET1 Capital Ratio

10.80%


Analyst Coverage

  • The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

  • The average consensus recommendation for the banks peer group is "buy"

  • Wall Street's median 12-month price target for US Bancorp is $66.50, about 5.5% above its July 15 closing price of $63.01

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 10 three months ago


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