U.S. Bancorp's profit rises, beating Wall Street's view

The Associated Press and Statesman staffJanuary 22, 2014 

U.S. Bancorp's fourth-quarter net income rose 3 percent as the bank set aside less money to cover soured loans and net charge-offs declined.

For the period that ended on Dec. 31, the bank's earnings for common shareholders were $1.39 billion, or 76 cents per share. That's up from $1.35 billion, or 72 cents per share, in the same period the year before, the Minneapolis-based lender said Wednesday.

Revenue declined 4 percent, to $4.89 billion from $5.11 billion.

Analysts surveyed by FactSet expected earnings of 75 cents per share on revenue of $4.88 billion.

The bank is the second largest in the Treasure Valley, with 21 percent of the market's deposits. It employs about 400 people in the Valley and more than 1,300 statewide.

Net interest income, money earned from loans and deposits, fell 2 percent to $2.73 billion. Non-interest income, which includes revenue from fees and other sources, dropped 7 percent to $2.16 billion.

U.S. Bancorp's provision for credit losses, or the money set aside to cover soured loans, declined 38 percent to $277 million.

Net charge-offs, or loans written off as uncollectible, fell by a third to $312 million.

For the year, net income rose 3 percent, to $5.55billion, or $3 per share, from $5.38 billion, or $2.84 per share, in 2012. Revenue fell 3 percent to $19.6 billion.

Shares closed at $41.58 on Tuesday and were trading a few cents lower in midday Wednesday trading. The share price has risen 26 percent over the past 12 months.

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