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Friday, February 3, 2012

U.S. Bancorp Reports Stellar Quarter: Record Revenues, Income, EPS

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U.S. Bancorp Reports Stellar Quarter: Record Revenues, Income, EPS


U.S. Bancorp Summary Q4 2011 U.S. Bancorp's Q4 financial performance was stellar. Financial position is very strong. Two extraordinary items were included for a net gain of $133 million, "a $263 million gain from the settlement of litigation related to the termination of a merchant processing referral agreement (“merchant settlement gain”) and a $130 million expense accrual related to mortgage servicing matters. per share was the worst since the QE June 2011. CEO Richard K. Davis said, “Throughout 2011, we remained focused on execution - prudently managing our businesses, investing in our franchise and producing consistent, solid growth and earnings. Today, I am very proud to report our fourth quarter and full year 2011 results, as they reflect the advantages derived from our diversified business model and, importantly, our ability to successfully implement our strategy and accomplish our goals."


U.S. Bancorp Income Statement Q4 2011 Net revenues were a record $5.05 billion, net income a record $1.35 billion, and earnings per share a record $0.69. From the prior quarter Q3 2011, net revenues were +6.57%, net income +6.05%, and earnings per share +7.81%. From the prior year Q4 2010, these were +8.14%, +38.60%, and +40.82%, respectively. Both the operating margin of 36.75% and the net margin of 26.74% are the second highest all-time. The only true negative about USB is the operating expense ratio of 47.71% is a multi-year high.


U.S. Bancorp Balance Sheet Q4 2011 Total assets were +3% QoQ and +11% YoY to a record $340.12 billion. The capital to assets ratio dipped QoQ to 10.28%, but continues strong. Return on assets increased QoQ to an outstanding +1.51%. Gross Loans increased QoQ and YoY and Net Loans are 60% of the asset mix. The Allowance for Loan Losses to Loans ratio of 2.27% is a multi-year low.


U.S. Bancorp (USB) Rating Q4 2011 At December 31, 2011, we have rated U.S. Bancorp an "A-", the same as at September 30, 2011. Financial position continues very strong. Financial performance is stellar. Our rating weights financial position more than financial performance and emphasizes safety and soundness, not future earnings potential. Ratings range from A+ down through G-.


U.S. Bancorp Performance by the Quarters










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