US Bancorp's first-quarter profit jumps on higher fee income
April 16 (Reuters) - US Bancorp (USB.N), opens new tab reported a rise in its first-quarter profit on Wednesday, helped by higher trust and investment management fees, sending its shares up 2% in premarket trading.
Uncertainties caused by tariffs threat have led to a decline in global markets, but prompted investors to actively rejig their portfolios. Bigger rivals such as Goldman Sachs (GS.N), opens new tab and JPMorgan Chase (JPM.N), opens new tab have also reported strong performance in their trading businesses.
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US Bancorp reported a 6.1% rise in trust and investment management fees to $680 million during the quarter ended March 31. It expects fee income to grow in mid-single digits in medium term.
The Minneapolis, Minnesota-based bank's net interest income — the difference between what banks pay customers on deposits and earn as interest on loans — rose 2.7% to $4.09 billion during the period.
US Bancorp in January had appointed Gunjan Kedia as its chief executive officer — the first woman in the bank's history to take up the role. She is a successor to Andy Cecere and started in the position on April 15.
The bank earned $1.03 per share on an adjusted basis during the quarter, compared with 90 cents per share a year earlier.
Its provisions for credit losses for the first quarter stood at $537 million, down from $560 million in the preceding three months and $553 million a year ago.
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