U.S. Bancorp (NYSE: USB) shares have advanced from $43 above $62 since the beginning of February 2021, and the current price stands around $60.7.
Fundamental analysis: U.S. Bancorp continues to move in the right direction
U.S. Bancorp is an American bank holding company that provides banking, investment, mortgage, trust, and payment services products. U.S. Bancorp is a stable bank with a good position in the market that has a well-diversified business profile with a large part of revenues coming from commissions and fees.
U.S. Bancorp shares have been moving in an uptrend last several months, and the bank’s business has proven stability throughout the Covid-19 pandemic. U.S. Bancorp reported its first-quarter results in April; total revenue has decreased by -5.2% Y/Y to $5.47 billion, while the GAAP EPS was $1.45 (beats by $0.49).
“Credit quality continues to perform better than we had expected – in fact, we incurred the bank’s lowest net charge-off ratio in recent decades, and an improved outlook for future performance allowed us to release over a billion dollars in reserves for credit losses,” said Chairman, President, and CEO Andy Cecere.
It is also important to mention that U.S. Bancorp returned $1.3 billion to shareholders during the first quarter in the form of dividends and share buybacks. The increasing vaccinations and the economy reopening will drive higher growth, and CEO Andy Cecere said that he expects that the first quarter will be a low point for net interest income.
According to U.S. Community Bank Market Reports, the outlook for bank returns is significantly more favorable currently than even a few months ago. The main reason for this is that the credit quality will continue to improve due to the accelerated pace of vaccinations
