U.S. bank sees second quarter profit nearly triple to just under $ 2 billion
The U.S. bank’s profit nearly tripled year-over-year to just under $ 2 billion in the second quarter, from $ 689 million in June 2020, the bank reported on Thursday.
That figure, however, represented a 13.1% drop in net income from the first quarter of 2021, which the bank attributed to a more robust release of loan loss reserves in the previous three months.
The back and forth between loans and deposits seemed to indicate an improvement in the personal economic situation of clients. Andy Cecere, CEO of the US bank, confirmed this assessment Thursday in a statement.
“Our second quarter results are indicative of continued improvement in economic conditions and the continued execution of our strategic growth plan in our business lines and markets,” he said. “However, we are even more excited about the significant secular growth opportunities that we see delivering some of the best returns in the industry over the long term.”
U.S. bank deposits grew 6.4% overall in the second quarter, but the non-interest bearing segment jumped 31.7% from the second quarter of last year.
Loans were down 7.5% year-over-year, with the largest declines in home equity and second (21%) and commercial (about 20%) mortgages.
The bank reported revenue of around $ 5.8 billion, relatively stable from the comparable quarter last year. The Minneapolis-based lender’s nearly $ 3.2 billion net interest income marked a 1.9% drop, which the bank attributed to falling interest rates and loan balances. But higher fees on Small Business Administration’s Paycheck Protection Program (PPP) loans helped curb a more steep decline, the bank said.
The bank saw its non-performing assets fall 9.7% year-on-year, she said Thursday.