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Banks

US Bancorp profit beats on higher interest income, loan growth

Key Points
  • Regional lender U.S. Bancorp reported a better-than-expected quarterly profit on Wednesday.
  • The results were helped by higher interest income and loan growth.
  • A strong economy has led the U.S. Federal Reserve to raise interest rates several times in the last three years, helping boost profits at U.S. banks, with lower taxes also adding to their gains.

Regional lender U.S. Bancorp reported a better-than-expected quarterly profit on Wednesday, helped by higher interest income and loan growth.

A strong economy has led the U.S. Federal Reserve to raise interest rates several times in the last three years, helping boost profits at U.S. banks, with lower taxes also adding to their gains.

Net interest income rose 2.4 percent to $3.25 billion in the third quarter, while the bank's income tax expense fell 23 percent to $490 million. Tax rate for U.S. Bancorp was 21 percent in the third quarter, compared with 35 percent a year earlier

Loans got a boost from commercial and residential mortgage lending, rising 1.2 percent to $281.07 billion.

Net income attributable to the bank's common shareholders rose 17 percent to $1.73 billion, or $1.06 per share, in the quarter ended Sept. 30.

Analysts on average had estimated earnings of $1.04 per share, according to I/B/E/S data from Refinitiv.

Total net revenue rose to $5.7 billion from $5.57 billion.

The Minneapolis, Minnesota-based bank's shares were up 1.5 percent in low volumes in early trading on Wednesday.

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Metals

US Steel workers are set to get the biggest pay raise in at least 6 years: Sources

Key Points
  • United States Steel workers are set to get the biggest wage jump in at least six years under a new deal negotiated with the company.
  • The pay raises provide an early sign that gains from U.S. President Donald Trump's clampdown on foreign imports are finally trickling down.