American largest bank U.S. Bancorp reports unexpected profits

One of the 10 top American banks U.S. Bancorp reported higher-than-expected revenues on Tuesday which sent its shares up about 21%, says Reuters. Losses from lease financing, construction and development loans as well as credit cards were offset by the string mortgage performance.

Loan losses accounted for $1.3 billion, up $833 million than a year before. Chief Executive Richard Davis expects to set aside similar amounts in the next two quarters, before loan losses start to moderate toward year end.

After the results were posted U.S. Bancorp’s shares surged 20.9% to $19.27.

"Our credit costs are elevated like the rest of the industry but we were able to offset that with our core businesses," Chief Financial Officer Andrew Cecere said in an interview.

First-quarter profit for common stockholders fell to $419 million, or 24 cents per share, from $1.08 billion, or 62 cents per share, a year earlier. Analysts on average were expecting the company to earn 20 cents a share.