Jan 16 (Reuters) - U.S. Bancorp's ( USB ) reported a

rise in its fourth quarter profit on Thursday, helped by an

increase in trust and investment management fees.

The expectation of more rate cuts and business-friendly

regulations anticipated under U.S. President-elect Donald

Trump's incoming administration has fueled an equity market

rally.

The lender's trust and investment management fees rose 13.2%

driven by growth in equity markets, while payments revenue

increased 1.6% in the quarter.

Bancorp has increasingly been focusing on fee-based products

and services, which represents about 40% of its total revenues,

as a way to generate more stable revenue.

The bank expects total net revenue growth to be between

3% and 5% for 2025.

On an adjusted basis, net income attributable to the lender

rose to $1.75 billion or $1.07 per diluted share, in the three

months ended Dec. 31. That compares with $1.63 billion or 99

cents per diluted share a year earlier.

The Minneapolis, Minnesota-based bank's provisions for

credit losses rose to $560 million in the fourth quarter, versus

$512 million a year earlier.

Banks have been setting aside more money to cover potential

losses due to bad loans, as higher interest rates make it more

likely that borrowers will default on their mortgages and credit

card debt.

U.S. Bancorp's ( USB ) net interest income (NII) on a

taxable-equivalent basis- the difference between what banks pay

customers on deposits and earn as interest on loans- rose about

0.8% to $4.18 billion in the quarter compared to a year earlier.

The bank's net interest margin - a key measure of lending

profitability - fell to 2.71%, compared with 2.78% in the

year-ago period.

U.S. Bancorp ( USB ) stock gained 10.5% in 2024.