U.S. Bancorp net income falls in 1Q

Diluted earnings per share were 62 cents, 1.6 percent lower than first-quarter 2007, according to the Minneapolis-based bank’s report.

Net interest income was $1.8 billion, up from $1.67 billion a year earlier, and noninterest income was $2.04 billion, compared to $1.72 billion a year ago.

Return on average assets was 1.85 percent, compared to 2.09 percent last year. Average loans for the quarter were 7.3 percent higher than first-quarter 2007.

The company’s results included a $492 million gain related to the Visa Inc. initial public offering in March, $253 million in impairment charges on structured investment securities purchased in last year’s fourth quarter, and an incremental provision for $192 million in credit losses due to stresses in the residential real estate market and related industries, according to the report.

Shares (NYSE: USB) closed Wednesday at $33.42, compared to a 52-week range of $27.86 to $35.08.