U.S. Bancorp falls on interest income forecast cut, Q1 profit decline
** Shares of U.S. Bancorp USB.N fall ~3.2% to $39.70 premarket
** Bank now expects FY24 net interest income, the difference between what a lender pays on deposits and earns on loans, between $16.1 bln and $16.4 bln
** USB had earlier forecast 2024 NII of over $16.6 bln
** U.S. lenders have been paying customers a higher rate on deposits to stem migration from bank accounts to alternatives with better returns such as money-market funds
** Meanwhile, loan growth has also taken a hit as elevated interest rates keep borrowers on the sidelines
** USB posts Q1 profit of 78 cents/share vs $1.04/share a year earlier
** Net interest income in Q1 falls 14% to $3.99 bln; net interest margin contracts to 2.70% vs 3.10% in the year-ago period
** As of last close, stock down ~5.3% YTD
Reporting by Manya Saini in Bengaluru
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