U.S. Bancorp Boosts Prime Lending Rate to 8.50 Percent

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U.S. ($NYSE:USB) Bancorp, one of the nation’s leading financial services companies, has recently announced that it is boosting its Prime Lending Rate to 8.50 percent. The Prime Lending Rate is the rate of interest that banks charge their most creditworthy customers for loans. This increase could affect millions of Americans who rely on these loans for a variety of financial needs. U.S. Bancorp is a diversified financial services company, providing banking, investment, mortgage, trust and payment services products to individuals, businesses, governmental entities, and other financial institutions.

Its subsidiaries include U.S. Bank National Association and Elavon, Inc., a global payments processor. U.S. Bancorp stock is listed on the Nasdaq Global Select Market under the ticker symbol “USB”.

Stock Price

On Wednesday, U.S. Bancorp, the fifth-largest bank in the United States, announced that it had raised its prime lending rate to 8.50 percent. The move was accompanied by a positive reaction on the stock market, with U.S. Bancorp stock opening at $38.4 and closing at $38.9, up 2.7 percent from its previous closing price of 37.9. The bank’s decision to raise its prime lending rate is one of many concerns for investors in the banking sector, as this will be the fourth time since December in which the rate has been raised. With the current rate now at 8.50 percent, experts anticipate that more hikes are likely in the near future. Live Quote…

About the Company

Income Snapshot

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Cash Flow Snapshot

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Balance Sheet Snapshot

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Key Ratios Snapshot

Some of the financial key ratios for U.s. Bancorp are shown below. More…

Analysis

At GoodWhale, we recently conducted an analysis of U.S. BANCORP‘s financials and the results were quite interesting. According to our Star Chart, U.S. BANCORP is strong in profitability, asset, dividend, and weak in growth. This suggests that U.S. BANCORP is a ‘cow’, a type of company which has the track record of paying out consistent and sustainable dividends. This makes U.S. BANCORP an ideal candidate for income-oriented investors such as retirees, those looking for a steady stream of income, or long-term investors looking for a reliable source of income. Furthermore, U.S. BANCORP has a high health score of 8/10 with regard to its cashflows and debt, which indicates that it is capable to sustain future operations in times of crisis. Overall, U.S. BANCORP is an ideal candidate for those looking for consistent and reliable dividend payments as well as those who value financial health and security. More…

Peers

U.S. Bancorp is one of the largest banks in the United States and offers a variety of banking products and services to its customers. Hamlin Bank and Trust Co, Adirondack Trust Co, and Susquehanna Community Financial Inc are all competitors of U.S. Bancorp.

– Hamlin Bank and Trust Co ($OTCPK:HMLN)

Hamlin Bank and Trust Co is a regional bank headquartered in Pennsylvania. The bank has 58 branches and offers a full range of banking services to retail and commercial customers. As of December 2020, Hamlin Bank and Trust Co had assets of $2.5 billion and deposits of $1.9 billion.

– Adirondack Trust Co ($OTCPK:ADKT)

The company’s market cap is 33.64M as of 2022 and its ROE is -1.3%. The company is a provider of financial services to the Susquehanna Valley region of Pennsylvania. The company offers a full range of banking, lending, and investment services to its customers. It also operates a network of ATM locations.

Summary

U.S. Bancorp recently announced it has increased its prime lending rate to 8.50%, making it the largest bank to join the trend of raising interest rates. This move is expected to have a positive impact on the bank’s earnings, as higher interest rates typically result in higher net interest income for banks.

Additionally, the increase in the rate could result in an uptick in consumer borrowing and credit demand, helping to drive additional loan growth for the organization. Additionally, analysts believe this move could lead to an increase in the bank’s stock price, as higher interest rates typically benefit banks’ bottom lines. U.S. Bancorp investors should monitor the stock closely for any potential profit-taking opportunities as a result of this decision.