President, Chairman and CEO Andy Cecere and Senior Executive Vice President and Chief Financial Officer John Stern presented at the Barclays (LON: BARC ) Global Financial Services Conference at 09:00 ET (13:00 GMT).
During the presentation, Stern indicated that the bank expects third quarter net interest income to be a little below the midpoint of the range of $4.2 billion to $4.4 billion. Stern cited tepid loan growth along with deposit pricing for the weakness in third quarter NII.
Stern explained, "tepid loan growth that we see, as well as some deposit pricing, and that will translate into a 2.80% net interest margin is what we would approximate for the third quarter. And that will be about 10 basis points or so lower than the previous quarter."
Stern’s outlook for the fourth quarter was more constructive.
“So I mentioned net interest margin down a little bit, given some of the loan and deposit things that we talked about. We would anticipate perhaps a little bit more of that in the fourth quarter, but not nearly as much as what we saw in the third quarter and particularly, bottoming out from that standpoint,” said Stern.
Discussing the macro picture, Cecere said, “what we're seeing is consistent with what you're hearing from other banks, which is the consumer remains strong. So from a spend level, from a deposit level by strata, from a credit quality standpoint, all a little bit better than pre-COVID levels, but all starting to trend towards normalization.”
Shares of U.S. Bancorp declined 4% following the presentation.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.