MINNEAPOLIS (AP) -- U.S. Bancorp said Wednesday that its net income jumped 18 percent in the second quarter, as the lender set aside less money for bad loans and got a boost from increased lending and its mortgage division.
The owner of U.S. Bank, based in Minneapolis, has more than 3,000 bank offices in 25 states. It's the fifth-largest commercial bank in the U.S., with $353 billion in assets.
The company's profit in the April-June quarter came to $1.42 billion, or 71 cents per share, compared with $1.2 billion, or 60 cents per share, a year ago. Analysts forecast 70 cents per share, according to FactSet.
Revenue grew 8 percent to $5.07 billion from $4.69 billion. Analysts expected $4.98 billion.
Net interest income, or money earned from loans, rose 7 percent to $2.71 billion. The company made $67.2 billion in new loans during the quarter and its average total loans rose nearly 8 percent versus a year earlier.
Non-interest income, which comes from fees and other sources, increased 10 percent to $2.36 billion. That division got a boost from the company's mortgage business, where revenue more than doubled to $490 million from $239 million on higher mortgage originations and sales.
The company's provision for credit losses — money set aside to cover souring loans — shrank 18 percent to $470 million.
U.S. Bancorp shares rose 46 cents, or 1.4 percent, to $33.41 in afternoon trading on Wednesday.