U.S. Bancorp profit climbs 2.6 percent as total loans, revenue increase

U.S. Bancorp, the nation's largest regional lender and parent company of U.S. Bank, said second-quarter profit rose 2.6 percent as loans and revenue increased.

Net income climbed to $1.52 billion, or 83 cents a share, from $1.48 billion, or 80 cents, a year earlier, the Minneapolis-based bank said Friday in a statement. The average estimate of 30 analysts surveyed by Bloomberg was for per-share profit of 80 cents. Revenue increased 8 percent to $5.45 billion, topping analysts' estimates of $5.19 billion, while expenses rose 12 percent. Total loans rose 8.1 percent.

'U.S. Bancorp reported strong second-quarter results, delivering record revenue and net income in an economy that continues to be challenged by global concerns and low interest rates,” Chief Executive Officer Richard Davis, 58, said in the statement.

Davis said last month at an investor conference that the bank sees opportunity in providing more home equity and consumer loans. U.S. Bancorp has relied on increased fees from credit cards and auto financing as persistently low interest rates have squeezed lending margins.

U.S. Bancorp shares fell 3.3 percent this year through Thursday, compared with the 8 percent decline of the 24-company KBW Bank Index.