US Bancorp Q2 revenue beats estimates on strong loan growth
USB•Outlook
The company did not provide specific guidance for upcoming quarters or full-year results in the press release.
Key result drivers
- Loan growth - Net interest income rose 7.5% year over year, driven by loan growth, improved asset mix, and benefits from fixed asset repricing.
- BTIG acquisition - Noninterest income rose 13.7% year over year, reflecting higher fee revenue and contribution from the BTIG acquisition.
- Commercial loans - Average total loans rose 7.1% year over year, driven by growth in commercial loans, commercial real estate loans, and credit card loans.
Key details and analyst coverage
| 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% |
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.
