US Bancorp (NYSE:USB) Q4 earnings
Bancorp USA (NYSE:USB) Share 1.2% increase in premarket trading Wednesday following the announcement of better-than-expected Q4 2022 earnings and guidance on revenue that beat Wall Street’s consensus estimates for both Q1 and full year 2023.
For the whole year 2022, the income is supported by solid net interest income, wider net margins and positive operating leverage of more than 230 basis points, said President and CEO Andy Cecere. On December 1, US Bancorp (USB) has completed its acquisition of MUFG Union Bank, which is expected to add 8%-9% to EPS in 2023, he added. The company expects Q1 revenue to grow to $7.1 billion-$7.3 billion versus the consensus forecast of $7.08 billion. For the year, it projects adjusted gross sales of $29B-$31B against the median analyst estimate of $29.03B.
The company guides net profit margins for the quarter and for the year to increase by 5-10 basis points from 3.01% in Q4 2022, US Bancorp (USB) said in his income slides.
Mid-income assets are expected to grow to $605B-$610B in Q1 and $610B-$620B at year-end from $573B at the end of Q4 2022.
Adjusted adjusted non-interest expenses for the quarter are expected to grow to $4.3 billion-$4.4 billion from $4.0 billion in Q4, compared to $3.71 billion Alpha consensus could see see. For the year, it is expected to be $17B-$17.5B versus $15.3B according to Alpha consensus visible. Non-interest expense guidance covers core intangible deposits related to Union Bank amounting to ~$125 million in Q1 2023 and ~$500 million during the year.
Adjusted EPS for the fourth quarter of 2022 was $1.20, beating the average analyst estimate of $1.14, up from $1.18 in Q3 and $1 in Q4 2021.
Its provision for credit losses increased to $1.19 billion, including $129 million for balance sheet optimization and $662 million for the repurchase impact of the initial provision. PCL was $362 million in Q3 and profit was $13 million in Q4 2021.
Net interest income for the third quarter on a taxable equivalent basis rose to $4.33 billion from $3.86 billion in the previous quarter and $3.15 billion in the same period a year earlier. Adjusted net profit margin was 3.01% compared to 2.83% in the previous quarter and 2.40% in the previous quarter.
Adjusted non-interest income fell to $2.44 billion from $2.47 billion in Q3 and from $2.53 billion in Q4 2021.
Total adjusted non-interest expenses for the fourth quarter of $4.04 billion were up from $3.64 billion in the previous quarter and from $3.53 billion in the previous quarter.
Average total loans were $359.8 billion versus $336.8 billion in Q3; average deposit was $481.8 billion compared to $456.8 billion in the previous quarter.
Conference call at 9:00 a.m. ET.
Before that, US Bancorp (USB) Non-GAAP EPS of $1.20 beats $0.06, revenue of $6.37 billion missed $240 million.