Of Special Interest

Filters

[x] [x]

26th July 2011

Good result from U.S. Bancorp

U.S. Bancorp reported net attributable of $1,162m (€811m £716m $1,167m ¥91.5bn Y7,524m) for Q2 and $2,170m (€1,508m £1,331m $2,170m ¥170.1bn Y13,990m) for the half year UP 35% and 44% respectively.


Notable is that U.S. Bancorp was one of the few banks to show an increase in NII (before credit loss provisions) and non-interest income for both the quarter and the half year. Compared with some of its peers another advantage was the lack of regulatory and legal costs. It is also one of the few western banks to show a return on equity above 15% since the financial crisis (Q2 = 15.9%). Cost to income was 51%.


Loan growth was 11.2% and deposit growth 14.2% during the quarter. Excluding acquisitions deposit growth was 9.6%.


Income statement 2nd Quarter Six Months
2011 2010 2011 2010
$m $m $m $m
Interest Income
Loans 2,563 2,515 5,115 5,020
Loans held for sale 34 47 97 91
Investment securities 459 394 887 804
Other interest income 63 39 120 73
_________________________________
Total interest income 3,119 2,995 6,219 5,988

Interest Expense
Deposits 210 229 444 465
Short-term borrowings 131 137 264 265
Long-term debt 290 272 571 549
_______________________________
Total interest expense 631 638 1,279 1,279

Net interest income 2,488 2,357 4,940 4,709
Provision for credit losses 572 1,139 1,327 2,449
_________________________________
NII after provision for credit losses 1,916 1,218 3,613 2,260

Noninterest Income
Credit and debit card revenue 286 266 553 524
Corporate payment products revenue 185 178 360 346
Merchant processing services 338 320 639 612
ATM processing services 114 108 226 213
Trust and investment management fees 258 267 514 531
Deposit service charges 162 199 305 406
Treasury management fees 144 145 281 282
Commercial products revenue 218 205 409 366
Mortgage banking revenue 239 243 438 443
Investment products fees and commissions 35 30 67 55
Securities gains (losses), net (8) (21) (13) (55)
Other 175 170 379 305
_________________________________
Total noninterest income 2,146 2,110 4,158 4,028

Noninterest Expense
Compensation 1,004 946 1,963 1,807
Employee benefits 210 172 440 352
Net occupancy and equipment 249 226 498 453
Professional services 82 73 152 131
Marketing and business development 90 86 155 146
Technology and communications 189 186 374 371
Postage, printing and supplies 76 75 150 149
Other intangibles 75 91 150 188
Other 450 522 857 916
_________________________________
Total noninterest expense 2,425 2,377 4,739 4,513

Income before income taxes 1,637 951 3,032 1,775
Applicable income taxes 458 199 824 360
_________________________________
Net income 1,179 752 2,208 1,415
Attributable to noncontrolling interests 24 14 41 20
_________________________________
Net income attributable to U.S. Bancorp 1,203 766 2,249 1,435
Preference stock - minorities 36 -96 79 75
_________________________________
Attributable to common shareholders 1,167 862 2,170 1,510