Don't expect U.S. Bancorp to share any glowing news when it reports quarterly results next month.
Chief Executive Richard Davis said Tuesday that he expects a "neutral outcome" in the second quarter, as low interest rates continue to weigh on income from loans.
"Nothing is moving backward — everything is going slightly forward," Davis said at a banking conference sponsored by Morgan Stanley in New York.
- WIB PH
U.S. Bancorp in Minneapolis said Terry Dolan will become its chief financial officer on Aug. 1. Dolan currently serves as vice chairman of wealth management and securities services.
June 13 - Minnesota
U.S. Bancorp in Minneapolis said it expects noninterest expense to increase in the second quarter due in part to compliance and marketing costs.
May 17 -
Hefty investments in customer-facing technology such as person-to-person payments, mobile check deposit and fingerprint recognition have given big banks a decided edge in attracting and retaining younger consumers.
May 5
Profits at the Minneapolis company were lackluster in the first quarter, dipping 3% to $1.4 billion.
Davis said he expects second-quarter net interest margin — a key measure of profitability — to shrink by 3-5 basis points compared with the first quarter. He attributed the projected decline to historically low yields on 10-year Treasury notes.
U.S. Bancorp's margin was 3.06% as of March 31.
Moreover, Davis
Davis did not provide updated guidance U.S. Bancorp's oil book, though he said earlier this month that the company has "plenty" of reserves.
The Minneapolis company's reserves stood at 9.1% as of March 31. Total energy loans were about $3.4 billion.
Still, it's not all bad news.
The company's $263 billion loan book is expected to grow 1.5%. Additionally, fee-based revenue will likely be stable, Davis said.
U.S. Bancorp is scheduled to release its second-quarter earnings on
