Total net revenue on a taxable-equivalent basis for the fourth quarter of 2012 was $5,112 million; $8 million (.2 percent) higher than the fourth quarter of 2011, reflecting a 4.1 percent increase in net interest income, largely offset by a 4.2 percent decrease in noninterest income. The increase in net interest income year-over-year was the result of higher average earning assets, continued growth in lower cost core deposit funding and the positive impact from long-term debt repricing. Noninterest income decreased year-over-year, primarily due to the $263 million merchant settlement gain recorded in the fourth quarter of 2011, partially offset by higher mortgage banking revenue in the current quarter. Total net revenue on a taxable-equivalent basis was $67 million (1.3 percent) lower on a linked quarter basis due to lower fee-based revenue driven by a reduction in mortgage banking revenue and the net impact of a third quarter of 2012 gain on sale of a credit card portfolio and a charge related to an investment under the equity method of accounting.Total noninterest expense in the fourth quarter of 2012 was $2,686 million; $10 million (.4 percent) lower than the fourth quarter of 2011 and $77 million (3.0 percent) higher than the third quarter of 2012. The decrease in total noninterest expense year-over-year was primarily due to the accrual for mortgage servicing related matters recorded in fourth quarter of 2011, partially offset by the current quarter mortgage foreclosure-related regulatory settlement accrual, as well as higher mortgage servicing review-related professional services costs. Total noninterest expense on a linked quarter basis was higher, primarily due to the accrual for the mortgage foreclosure-related regulatory settlement and an increase in mortgage servicing review-related professional services costs, partially offset by lower compensation expense.
U.S. Bancorp Reports Fourth Quarter And Full Year 2012 Earnings
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