This Day On The Street
Continue to site
ADVERTISEMENT
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

U.S. Bancorp Reports Fourth Quarter And Full Year 2012 Earnings

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.

The Company’s provision for credit losses for the fourth quarter of 2012 was $443 million, $45 million lower than the prior quarter and $54 million lower than the fourth quarter of 2011. The third quarter of 2012 provision for credit losses included $54 million in charge-offs related to a regulatory clarification in the treatment of residential mortgage and other consumer loans to borrowers who have had debt discharged through bankruptcy but continue to make payments on their loans. The provision for credit losses was lower than net charge-offs by $25 million in the fourth quarter of 2012, $50 million in the third quarter of 2012 and $125 million in the fourth quarter of 2011. Net charge-offs in the fourth quarter of 2012 were $468 million, compared with $538 million in the third quarter of 2012, and $622 million in the fourth quarter of 2011. Given current economic conditions, the Company expects the level of net charge-offs to be relatively stable to down modestly in the first quarter of 2013.

4 of 21

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
Only $9.95
14-Days Free
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
SYM TRADE IT LAST %CHG

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs