(Bloomberg) -- U.S. Bancorp, the nation’s biggest regional lender, posted a first-quarter profit that matched analysts’ estimates as mortgage-banking revenuedeclined.
Net income fell 2.1% to $1.4 billion, or 73 cents a share, from $1.43 billion, or 73 cents, a year earlier, the Minneapolis-based firm said today in a statement. That equaled the average estimate of 31 analysts surveyed by Bloomberg.
Chief Executive Officer Richard Davis is relying on fees from businesses including credit cards and wealth management to help counter a slump in mortgage lending. The company last month received Federal Reserve approval to raise its quarterly dividend to 25 cents after passing the central bank’s annual stress test.
“Our performance clearly reflects the advantage of our diversified business mix and disciplined expense management, which has enabled us to withstand the revenue challenges facing our industry in this slow-growth economy,” Davis, 56, said in the statement. “Credit quality is expected to remain relatively stable in the coming quarters.”
Total revenue declined 1.2% to $4.81 billion from a year earlier as mortgage-banking fees dropped 41% to $236 million, according to the statement. Credit and debit-card revenue increased 12% to $239 million and trust and investment-management fees increased 9.4% to $304 million, the firm said.
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