By Dhirendra Tripathi – U.S. Bancorp (NYSE:USB) stock rose nearly 4% Thursday as the bank’s second-quarter earnings and revenue both beat estimates.

The lender posted diluted earnings per share of $1.28 on revenue of $5.78 billion. This beat the $1.12 EPS that was supposed to come on an estimated revenue of $5.62 billion.

Profits got a boost from the release of $350 million from loss reserves due to improving economic outlook and credit trends.

The company’s payments business boomed as customers, coming out of a pandemic and loaded on government stimulus, took to spending in a big way.

Revenue in the credit and debit card business rose almost 40% from a year ago to $396 million.

Non-interest income, which the payments business is part of, also benefited in revenue from prepaid card processing activities related to government stimulus programs as well as stronger transaction and cash advance fees and higher merchant processing services revenue.

Non-interest revenue was offset by commercial products business due to lower capital markets activity and trading revenue.

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