U.S. Bancorp Stock Plunges 6.6% After Q4 Earnings Report

U.S. Bancorp’s stock dropped 6.6% after its Q4 earnings report revealed disappointing results. Despite a significant increase in net income to $1.67 billion, the bank’s adjusted earnings per share came in lower than expected at $1.07.

Revenue rose 3.7%, driven by strong growth in trust and investment management fees. However, higher funding costs and a decline in net interest margins cast a shadow over the results. The main concern was expenses, which climbed 2.5% from last quarter to $4.31 billion.

U.S. Bancorp’s provision for credit losses rose 9.4% year-over-year, indicating ongoing stress in commercial real estate and credit card loans. Management remains optimistic, citing a solid capital position with a CET1 ratio of 10.6%. However, investors are cautious due to cost pressures and economic uncertainty.

The bank is focused on operational efficiency, but lease impairments and strategic spending continue to eat into its bottom line. CEO Andy Cecere is confident in delivering “industry-leading returns” despite the challenges. He points to growth potential in wealth management and payment services as a key driver of future gains.

Source: https://finance.yahoo.com/news/u-bancorp-crashes-6-6-154755525.html