US Bancorp beats Wall Street forecasts on mortgage sales

City A.M. Reporter
US BANCORP’S first-quarter profit topped analysts’ expectations yesterday as mortgage banking revenue surged.

Like other large banks, US Bancorp received a boost as borrowers refinanced home loans at low interest rates. Mortgage banking revenue more than doubled to $452m.

US Bancorp has been building up its mortgage business while some large banks pull back, helping it gain market share from large and small players, chief executive Richard Davis said in a conference call with analysts.

“We see a market share [opportunity] that you only get once in a lifetime, and we intend to enjoy it now,” Davis said.

The bank expects to become a top five player in US mortgage originations and servicing, he said.

The company reported first-quarter net income of $1.3bn, or 67 cents per share, up from $1.05bn, or 52 cents per share, a year earlier.