2 days Ago By Allissa Kline
This news is developing. Please check back for updates. U.
S. Bancorp's first-quarter revenues outpaced its expenses, marking another quarter in which the Minneapolis-based company reeled in higher profits while reducing its spending. For the quarter ended March 31, revenues totaled $7 billion, up 3.
6% from the year-ago quarter as a result of higher net interest income and fee income, the company said Wednesday. At the same time, expenses totaled $4.2 billion, down 5.
1% compared with the year-ago period. Earnings per share were $1.03.
Analysts polled by S&P Capital IQ predicted 98 cents per share. U.S.
Bancorp maintained its full-year 2025 outlook for net revenues, projecting an increase of 3% to 5%. For the second quarter, it's forecasting net interest income in the $4.1 billion to $4.
2 billion range, fee income around $2.9 billion and noninterest expenses of $4.2 billion or lower.
In September, U.S. Bancorp hosted its first investor day in five years , where it set two- to three-year goals for its turnaround.
The company said it was targeting a return on assets of 1.15% to 1.35%, a return on tangible common equity in the high-teens and an efficiency ratio in the low-50s.
For the first quarter, it reported a return on assets of 1.04% and a return on tangible common equity of 17.5% Its efficiency ratio came in at 60.
8%. U.S.
Bancorp's first-quarter results were released one day after Gunjan Kedia succeeded Andy Cecere as CEO of the Minneapolis-based company. Kedia, who's been Cecere's heir apparent since May when she was promoted to president , assumed the CEO seat following the company's annual shareholders meeting on Tuesday. She is the first woman to run the company and joins Citigroup's Jane Fraser as one of two women running the nation's 50 largest banks.
Kedia was ranked No. 4 on American Banker's 2024 Most Powerful Women in Banking list. She will retain the president title, the company has said.
Meanwhile, Cecere, who was chairman of the company's board of directors while CEO, is now shifting into the role of executive chairman. In an interview with American Banker in January, Kedia laid out her major priorities as CEO — accelerating growth at the $676.5 billion-asset company, transforming its payments business and increasing productivity.
Much of the focus will be on deepening client relationships, she said. The results also follow the recent sudden death of Terry Dolan , U.S.
Bancorp's vice chair and chief administration officer, who was killed in a plane crash in Minneapolis on March 29. Dolan owned the small plane that flew into a home in Brooklyn Park, a suburb 11 miles northwest of Minneapolis. He was the only passenger aboard when it went down.
In a statement Wednesday, Kedia said: "As we collectively mourn the loss of our dear friend and colleague, Terry Dolan, the U.S. Bank family truly appreciates the outpouring of support and heartfelt condolences we've received from far and wide.
Our prayers continue to be with his family and friends during this most difficult time.".
