U.S. Bancorp reported an increase in profit and revenue in the third quarter, driven by an increase in mortgage refinancing, according to an article by Austen Hufford for The Wall Street Journal.

The bank’s earnings came in at $1.5 billion, up slightly from $1.49 billion last year, according to the article. The net income per share hit $0.84, up from $0.81. However, this is down from its earnings of $1.52 billion in the second quarter.

From the article:

Revenue, a combination of net interest income and fee-based income, rose 4.7% to $5.39 billion. Analysts had expected 83 cents a share in earnings and $5.35 billion in revenue, according to Thomson Reuters.

Mortgage banking revenue increased 40% from last year on increased refinancing activities driven by lower longer-term interest rates.

While refinancing activity is up, the bank still has other struggles to face, such as the historically low interest rates, according to the article.

From the article:

“The banking industry continues to face steady headwinds, including persistently low interest rates, a flat yield curve, and a slow economic recovery that caused some commercial customers to pause investments in their businesses during the quarter,” Chief Executive Richard Davis said.

The increase is not unexpected as Goldman SachsBank of AmericaWells Fargo and JPMorgan Chase, also beat expectations this quarter, however Citigroup fell short.

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