US Bancorp (USB) and State Street (STT) reported higher second-quarter earnings year over year on Thursday, as both lenders topped revenue estimates amid strong net interest income and fee-based gains.
US Bancorp's earnings per share for the June quarter rose to $1.35 from $1.11 a year earlier, exceeding the FactSet-polled consensus of $1.28. Net revenue grew 10% to a record $7.71 billion, while analysts expected $7.58 billion.
On a taxable-equivalent basis, the US Bank parent's net interest income increased 7.5% to $4.39 billion, driven by loan growth. Noninterest income jumped about 14% amid higher fee revenue and an additional boost from the recently-completed acquisition of investment bank BTIG.
US Bancorp benefited from strong loan growth and record consumer deposits in the second quarter, Chief Executive Gunjan Kedia said in a statement. "Credit quality continues to improve," Kedia said.
Big banks including JPMorgan Chase (JPM), Goldman Sachs (GS) and Bank of America (BAC) all posted strong second-quarter results earlier this week amid gains in markets revenue and investment banking fees.
In a separate release, State Street (STT) said its second-quarter EPS jumped to $3.65 from $2.17 a year ago. Revenue surged 17% to a record $4.05 billion, while the Street projected $3.88 billion.
The financial services company's fee revenue, which accounted for the bulk of overall revenue, climbed 17%, while net interest income grew 18%.
The firm logged record assets under custody and administration and assets under management, State Street CEO Ron O'Hanley said in a statement. State Street had $57.9 trillion in assets under custody and/or administration as of June 30.
Shares of US Bancorp were up 1.4% intraday, taking the stock's year-to-date gains to nearly 20%. State Street rose 0.4%, with the stock having surged about 45% so far this year.
Price: $63.81, Change: $+0.80, Percent Change: +1.27%