US Bancorp sees annual net interest income below Wall Street estimates, shares fall

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US Bancorp sees annual net interest income below Wall Street estimates, shares fall
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US Bancorp forecast full-year net interest income (NII) below Wall Street estimates, sending the lender's shares down more than 1% in premarket trading on Wednesday.

The logo of US Bank is seen atop the US Bank Tower in downtown Los Angeles July 17, 2012. REUTERS/Fred Prouser/File Photoforecast full-year net interest income below Wall Street estimates, sending the lender's shares down more than 1% in premarket trading on Wednesday.

The weak forecast comes despite lenders earning more in interest income, thanks to a sharp rise in interest rates by the Federal Reserve to tame decades-high inflation. Minneapolis-based US Bancorp now expects full-year NII, which measures the difference between what banks earn on loans and pay out on deposits, to be between $17.5 billion and $18.0 billion. Analysts on average expect $18.1 billion, according to Refinitiv data.

The bank's NII for the quarter ended June 30 rose to $4.45 billion, compared with $3.46 billion a year ago.Its total average deposits were at $497.27 billion, down 2.6% sequentially and up 9% over a year earlier. The lender also set aside $821 million as provisions for bad loans in the quarter, compared with $311 million a year ago.

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