U.S. Bancorp, the parent of U.S. Bank, has reported net income of $1.5bn for the third quarter of 2016, a marginal rise of 0.9% compared to $1.49bn a year ago.
For the quarter ended 30 September 2016, total revenue increased 4.7 % to $5.39bn from $5.14bn a year ago.
Net interest income on a taxable-equivalent basis was $2.94bn, a rise of 4.3% from $2.82bn in the third quarter of 2015. Noninterest expense rose 5.6% to $2.93bn from $2.77bn a year earlier.
The net interest margin in the third quarter was 2.98%, compared to 3.04% in the prior year.
The bank’s provision for credit losses increased 15.2% year-on-year to $325m from $282m.
U.S. Bancorp chairman and CEO Richard Davis said: The banking industry continues to face steady headwinds, including persistently low interest rates, a flat yield curve, and a slow economic recovery that caused some commercial customers to pause investments in their businesses during the quarter. Despite the operating environment, we announced record earnings per share and solid revenue growth, particularly within our fee-based businesses.
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“The continuing momentum in consumer lending led to growth in net interest income despite a decline in net interest margin. Fee-based revenues grew year over year across most categories including payments, mortgage banking and wealth management while capital markets continued to have solid performance in the third quarter. We remain confident in our ability to generate consistent, predictable and repeatable industry-leading financial results because of our diversified business model and the execution of our strategy.”