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U.S. Bancorp – USB – Earnings better than estimates

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U.S. Bancorp (NYSE: USB) reported net income of $1,420 million for the fourth quarter of 2012, or $.72 per diluted common share, and $5,647 million of net income, or $2.84 per diluted common share, for full year 2012. Included in the fourth quarter of 2012 results was a previously disclosed $80 million expense accrual for a mortgage foreclosure-related regulatory settlement, which reduced quarterly diluted earnings per common share by $.03.

USB – Summary highlights for the full year of 2012 included:

  • Record full year 2012 net income of $5.6 billion, 15.9 percent higher than 2011
    • Record full year diluted earnings per common share of $2.84, 15.4 percent higher than 2011
    • Record full year total net revenue of $20.3 billion, 6.2 percent higher than 2011
    • Industry-leading performance measures, including return on average assets of 1.65 percent, return on average common equity of 16.2 percent and efficiency ratio of 51.5 percent
    • Positive full year operating leverage

USB – Highlights for the fourth quarter of 2012 included:

  • Strong new lending activity of $71.5 billion during the fourth quarter, including:
    • $39.8 billion of new and renewed commercial and commercial real estate commitments
    • $2.6 billion of lines related to new credit card accounts
    • $29.1 billion of mortgage and other retail loan originations
  • Growth in average total loans of 6.4 percent over the fourth quarter of 2011 (8.6 percent excluding covered loans) and 1.5 percent on a linked quarter basis (6.0 percent annualized)
    • Growth in average total commercial loans of 15.7 percent over the fourth quarter of 2011 and 2.8 percent over the third quarter of 2012
    • Growth in average commercial and commercial real estate commitments of 15.6 percent year-over-year and 2.5 percent over the prior quarter
  • Significant growth in average deposits of 9.2 percent over the fourth quarter of 2011, including:
    • Growth in average noninterest-bearing deposits of 14.2 percent year-over-year and 6.6 percent over the third quarter
    • Growth in average total savings deposits of 6.6 percent year-over-year and 3.7 percent over the third quarter
  • Net interest income growth of 4.1 percent over the fourth quarter of 2011
    • Average earning assets growth of 5.8 percent year-over-year and 1.1 percent on a linked quarter basis
    • Continued strong growth in lower cost core deposit funding on a year-over-year and linked quarter basis
    • Net interest margin of 3.55 percent for the fourth quarter of 2012, compared with 3.60 percent for the fourth quarter of 2011, and 3.59 percent for the third quarter of 2012

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “2012 was a great year for our Company, as we achieved record annual earnings of $5.6 billion, or $2.84 per diluted common share. Further, our 2012 full year results included record total net revenue of $20.3 billion, representing growth in net interest income and fee revenues, as well as controlled expenses. Additionally, we achievedpositive operating leverage for both the year-over-year quarter and full year. Our returns on average assets and average common equity for 2012 of 1.65 percent and 16.2 percent, as well as our efficiency ratio of 51.5 percent, surpassed our performance in 2011 and remain industry-leading.

About U.S. Bancorp – USB

Minneapolis-based U.S. Bancorp (USB), with $354 billion in assets as of December 31, 2012, is the parent company of U.S. Bank National Association, the 5th largest commercial bank in the United States.

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edliston
Post Written By: Ed Liston
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing in his yacht.

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Ed Liston

Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications. He is widely quoted in various financial publications on the Internet. When Ed is not writing about stocks, investing in stocks, talking about stocks, or otherwise doing something stock related, he likes to go sailing and fishing.

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