U.S. Bancorp Fee Income Rises as New CEO Looks to Diversify

U.S. Bancorp, the fifth-largest US bank, beat analysts’ estimates on one of the revenue metrics key to Chief Executive Officer Gunjan Kedia’s plan to boost profitability.

Non-interest income for the first quarter rose 5% to $2.84 billion, topping the $2.79 billion predicted by analysts. The firm has been diversifying revenue sources across payments, asset management and capital markets, with fee income now accounting for more than 40% of the total.

“We managed expenses with discipline and delivered 270 basis points of positive operating leverage on an adjusted basis – our third consecutive quarter of year-over-year growth in revenues ...