Why U.S. Bancorp Shares Are Down Today
Portfolio Pulse from Lekha Gupta
U.S. Bancorp's Q3 FY23 total adjusted net revenue of $7.000 billion missed the consensus of $7.010 billion, causing its shares to trade lower. Adjusted net interest income and noninterest income rose 10.7% and 11.9% Y/Y respectively. The company's net interest margin was 2.81%, down from 2.83% in Q3 FY22. The provision for credit losses increased to $515 million from $362 million in the year-ago period. The company's CET1 ratio improved to 9.7% from 9.1% in Q2 FY23.
October 18, 2023 | 5:16 pm
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NEGATIVE IMPACT
U.S. Bancorp's shares are trading lower due to a slight miss in Q3 FY23 revenue. However, the company showed growth in net interest income and noninterest income, and an improved CET1 ratio.
U.S. Bancorp's shares are trading lower due to the company's Q3 FY23 revenue missing the consensus. However, the company showed growth in its net interest income and noninterest income, and an improved CET1 ratio, which are positive indicators for the company's financial health. The increased provision for credit losses could be a concern for investors, contributing to the negative short-term impact on the stock.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100