This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

5 Bank Stocks That Can't Stop Posting Profits

2. U.S. Bancorp

Shares of U.S. Bancorp (USB - Get Report) of Minneapolis closed at $31.94 Monday, returning 21% during 2012, with a three-year total return of 36%, although the five-year total return was 13%.

The shares traded for 2.6 times tangible book value, and for 10.3 times the consensus 2013 EPS estimate of $3.08. The consensus 2014 EPS estimate is $3.32.

Based on Monday's close and a quarterly payout of 19.5, the shares had a dividend yield of 2.44%.

For the first quarter of 2010 through the third quarter of 2012, U.S. Bancorp's return on average tangible common equity was 22.84%.

The company reported third-quarter net income of $1.474 billion, or 74 cents a share, earnings increasing from $1.415 billion, or 71 cents a share, during the second quarter, and $1.273 billion, or 64 cents a share, during the third quarter of 2011. The third-quarter net interest margin was 3.59%, increasing slightly from 3.58% in the second quarter, but narrowing from 3.65% a year earlier. The improved earnings reflected strong loan growth and mortgage fee income.

The third-quarter return on average tangible common equity was 20.88%.

Following the company's earnings announcement, UBS analyst Greg Ketron on Oct. 17 reiterated his "Buy" rating for U.S. Bancorp, with a $38 price target, saying "the bank continues to post above average returns, was able to maintain its NIM while there has been sharp contractions at peers, and has had above average loan growth."

Ketron said the company was "on track for a 50% efficiency ratio." The efficiency ratio is, essentially, the number of pennies of overhead expenses a bank incurs for each dollar of revenue. Ketron said that during the third quarter, "the efficiency ratio improved to 50.4% from 51.1% in 2Q12. The 50.4% is the lowest level since 1Q10 and we believe USB will be able to generate levels near or below 50% on a long-term basis."

The analyst estimates that USB will earn $3.10 a share in 2013, with EPS rising to $3.40 in 2014.

USB Chart USB data by YCharts

Interested in more on U.S. Bancorp? See TheStreet Ratings' report card for this stock.

5 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
C $51.19 0.00%
BAC $15.42 0.00%
CFR $69.22 0.00%
PB $51.99 0.02%
USB $43.25 0.00%


DOW 17,678.23 -40.31 -0.23%
S&P 500 2,056.15 -4.90 -0.24%
NASDAQ 4,863.3620 -13.1570 -0.27%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs