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Regional lender U.S. Bancorp reported a better-than-expected quarterly profit on Wednesday, helped by higher interest income and loan growth.
A strong economy has led the U.S. Federal Reserve to raise interest rates several times in the last three years, helping boost profits at U.S. banks, with lower taxes also adding to their gains.
Net interest income rose 2.4 percent to $3.25 billion in the third quarter, while the bank’s income tax expense fell 23 percent to $490 million. Tax rate for U.S. Bancorp was 21 percent in the third quarter, compared with 35 percent a year earlier
Loans got a boost from commercial and residential mortgage lending, rising 1.2 percent to $281.07 billion.
Net income attributable to the bank’s common shareholders rose 17 percent to $1.73 billion, or $1.06 per share, in the quarter ended Sept. 30.
Analysts on average had estimated earnings of $1.04 per share, according to I/B/E/S data from Refinitiv.
Total net revenue rose to $5.7 billion from $5.57 billion.
The Minneapolis, Minnesota-based bank’s shares were up 1.5 percent in low volumes in early trading on Wednesday.