U.S. Bancorp reported $1.58 billion of net income during Q3, down from $1.92 billion during the same year-ago period For the year to date, income was $3.46 billion compared with $5.45 billion last year.

“The components of net income are being adversely impacted by the COVID-19 environment resulting in significantly lower interest rates and consumer and business spending activities and changes in credit quality,” the corporation said in its third-quarter earnings report. “The provision for credit losses takes into account expected loss estimates considering various factors including the economic outlook, changing credit quality and ongoing new loan production and acquired loans.”

Return on average common equity was 12.8 percent and return on average assets was 1.17 percent.

“Our results, during this challenging economic environment, are a testament to our diverse business mix and consistent approach to credit risk management. Consumer loan growth was robust, and our fee-based businesses performed well. Our mortgage banking business was particularly strong in the third quarter as we continued to support customers’ home financing and re-financing needs, and our payments businesses benefited from improving consumer spending activity as state and local economies continued to open,” said Andy Cecere, chairman, president and CEO. “Our capital and liquidity positions remain strong and although credit losses are increasing for the entire industry we are well positioned to navigate a more challenging credit environment. Consumer loan growth was robust, and our fee-based businesses performed well. Our mortgage banking business was particularly strong in the third quarter as we continued to support customers’ home financing and re-financing needs, and our payments businesses benefited from improving consumer spending activity as state and local economies continued to open.”