U.S. Bancorp reported record quarterly revenue on Thursday, benefiting from robust loan growth and broad-based fee income, while its acquisition of investment bank BTIG provided an additional boost.
Financial Highlights
Net interest income, the difference between what a bank earns on loans and pays out on deposits, rose 7.7% over the year earlier to $4.36 billion in the second quarter, driven by strong loan growth and fixed-asset repricing.
Average loan growth was 7.1%, underpinned by strength in commercial, credit card and commercial real estate loans. U.S. Bancorp posted its third consecutive quarter of record consumer deposits, while credit quality continued to improve, CEO Gunjan Kedia said.
Total fee revenue jumped 13.2% to $3.37 billion during the quarter. The acquisition of BTIG in an up to $1 billion deal bolstered its capital markets presence.
The BTIG buy, higher fees from corporate bond underwriting, and stronger client-related derivative activity drove a 62.5% surge in quarterly capital markets revenue to $512 million. Profit attributable to U.S. Bancorp jumped 20% to $2.18 billion. Total net revenue increased 10.1% to $7.71 billion.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
