MINNEAPOLIS (AP) -- U.S. Bancorp's first-quarter net income rose 7 percent as lower costs offset falling revenue, which was shy of most Wall Street predictions.
Shares slipped in premarket trading Tuesday.
The Minneapolis bank earned $1.43 billion, or 73 cents per share, up from $1.34 billion, or 67 cents per share, in the same quarter last year.
The bank attributed growth to a 4 percent decrease in noninterest expense to $2.47 billion and a 16 percent reduction in its provision for credit losses — or the amount of money set aside to cover soured loans — to $403 million.
Net interest income edged up less than 1 percent to $2.71 billion. Net interest income combines interest on loans that the bank collects and interest on deposits and debt that the bank pays out. It is a measure of the bank's ability to profit from its lending.
The company's average total loans rose 6 percent to $12.3 billion on higher demand for both residential mortgages and commercial loans, while average deposits increased 7 percent.
But noninterest income, which includes revenue from fees and other sources, fell 3 percent to $2.17 billion.
Total revenue fell 1 percent to $4.87 billion from $4.93 billion. Analysts polled by FactSet had expected $5.02 billion.
U.S. Bancorp shares fell 11 cents to $33.20 in premarket trading.
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