Single Page | 
Multiple Pages
Home > BizTimes Daily > Archives > April 20, 2010
U.S. Bancorp booming with new loans
Published April 20, 2010 - BizTimes Daily
U.S. Bancorp today reported first quarter net income of $669 million, or 34 cents per share, up from $529 million, or 24 cents per share, in the same period a year ago.
The Minneapolis-based company, which operates U.S. Bank in Wisconsin, continued to strengthen its allowance for credit losses in the first quarter of 2010 by recording $175 million of provision for credit losses in excess of net charge-offs, yet the firm remained profitable.
The company reported strong new lending activity of $36.5 billion during the first quarter including, $6.6 billion of new commercial and commercial real estate commitments.
U.S. Bancorp chairman, president and chief executive officer Richard Davis said, "Our first quarter earnings of $.34 per diluted common share were approximately 42 percent higher than the same quarter of 2009 and were driven by solid year-over-year growth in total net revenue, moderating credit costs and on-going operational efficiency. Total net revenue benefited from earning asset and deposit growth, as well as an expanded net interest margin, while higher fee revenue, notably in payments and corporate banking, reflected our on-going investments and business line growth initiatives.”
Davis said the company expects its levels of charge-offs and nonperforming assets will remain stable in the second quarter.
"As a company, we are confident and focused on the future. We are investing in our businesses, branches, employees and infrastructure. We continue to build deeper relationships with our clients, while transitioning from providing high quality customer service to being recognized for providing a great, high quality customer experience. We have not, however, lost sight of the prudent operating and risk management principles of our past - principles that have allowed our company to successfully navigate an uncertain economy and unprecedented changes in the financial services industry,” Davis said. “There is more change to come, and we have taken a leadership position to help ensure that the industry and, importantly, our company play a vital role in the economic recovery. Our first quarter results demonstrated the underlying strength of our business model, and I am confident that our company's momentum will accelerate as the economy recovers. We have the depth, breadth and strength to grow and prosper in the years ahead for the benefit of our customers, employees, the communities we serve and our shareholders."
