We keep our $64 target on forward P/E of 14.5x our 2022 EPS, above five-year historic average at 13.6x and a premium to 12.2x peer average. We raise our 2021 EPS by $0.30 to $5.20 and lower 2022's by $0.20 to $4.40, near consensus estimate. USB posts Q3 2021 EPS of $1.30, including $310 million reserve reversal benefit. USB realized 1.7% Y/Y decline in net interest income (NII) and flat Y/Y noninterest income. For Q2 2021, credit and debit card revenue +1.3% Y/Y, corporate payment products +24.8%, merchant processing services +13.0%, and trust and investment management fees +5.8%, partly offset by declines in mortgage banking 24.4% and commercial products/loans 8.6%. Credit quality trends are favorable with the release of $310 million in Q3 2021 and better-than-expected credit trends. On USB's corporate payments, overall results regained to 2019 levels, despite travel and entertainment still about 50%-55% below 2019. Management expects T&E payments to move to normalize activity, perhaps in 2022.
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