U.S. Bancorp (USB) said its first-quarter earnings fell 2.2% as the regional lender posted weaker mortgage banking revenue.
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U.S. Bancorp and other regional banks have struggled with softer revenue from their mortgage businesses amid low interest rates and less demand for refinancing. Mortgage-banking revenue in the latest quarter fell 41% from a year earlier to $236 million.
U.S. Bancorp reported a profit of $1.4 billion, down from $1.43 billion. Per-share earnings were flat at 73 cents, due to fewer shares outstanding in the latest period. Revenue shrank 1.2% to $4.81 billion.
Analysts polled by Thomson Reuters had predicted earnings of 73 cents a share on revenue of $4.8 billion.
Like several of its peers, U.S. Bancorp continued to get a boost from stronger credit quality. Credit-loss provisions fell 24% from a year earlier to $306 million.
The regional bank, with more than 3,000 branches across the Midwest and West, this year struck a deal to double its Chicago-area presence by agreeing to buy 94 Chicago branches from RBS Citizens Financial Group Inc., and indicated it will continue to make acquisitions.