Investing.com -- U.S. Bancorp (NYSE:USB) reported a jump in net interest income on an annual basis in the second quarter thanks in part to a recent surge in interest rates.
Net interest income (NII), the difference between what a bank makes from loans and pays out for deposits, rose by 28.4% annually to $4.45 billion. The figure was below Bloomberg consensus estimates of $4.49B.
Many banks have seen their earnings boosted over the latest three-month period following a string of rate hikes by the Federal Reserve. This has helped to lift the amount that these businesses can charge to lend.
U.S. Bancorp has been a beneficiary of this trend, although Chief Executive Andy Cecere noted that the elevated rate environment has also led to "higher deposit costs." NII dipped by 4.7% quarter-on-quarter.
Meanwhile, adjusted profit per share grew year-on-year to $1.12, roughly in line with expectations. Shares in the company were higher in early U.S. trading Wednesday.
The Minneapolis-based bank forecast that NII would be between $17.5B to $18B in 2023, below the mark of $18.1B projected by Refinitiv and cited by Reuters.