- U.S. Bank’s profit fell 31% in the first quarter of 2022, compared with the same period last year, from $2.28 billion to $1.56 billion, the Minneapolis-based bank reported Thursday.
- The bank set aside $112 million in case of credit losses, a turnabout from the $827 million in reserves it recaptured in the first quarter of 2021.
- The bank reported a 2.3% uptick in revenue for the most recent quarter — to $5.6 billion, from the $5.47 billion it reported during the first three months of last year.
U.S. Bank reported 6.5% loan growth year over year, and 3.4% on a linked quarter basis.
The bank posted net interest income of $3.2 billion for Q1 2022, up 3.6% from roughly $3.1 billion the year prior.
Noninterest income was $2.4 billion, compared with $2.38 billion in the first three months of 2021.
Average total deposits grew 6.5% year over year, and almost 1% on a linked-quarter basis.
"Our results benefited from healthy trends in consumer and business activity. We saw very strong loan growth, which drove solid growth in net interest income," the bank’s CEO, Andy Cecere, said in a statement. "Our fee revenue growth was supported by improving business activity and new business wins. Notably, we continued to see good momentum in our payments businesses reflecting both continued cyclical recovery in pandemic impacted industries, particularly travel and entertainment sectors, as well as the benefit from previous investments."
Cecere said the bank continues to focus on integration activities relating to its planned acquisition of MUFG Union Bank, valued around $8 billion when the deal was announced in September.
The bank trumpeted the expected benefits of the merger at a public hearing the Federal Reserve and the Office of the Comptroller of the Currency held last month. Cecere pledged the bank would invest $100 billion in the communities it touches, and that the firm would not desert any low- to moderate-income areas in California.