U.S. Bancorp Reports Record Q2 Earnings
U.S. Bancorp reported record net income of $1,484 million for the second quarter of 2013, up 4.9% from $1,415 million in the same quarter one-year ago. Earnings for the second quarter were driven by a year-over-year reduction in noninterest expense and a lower provision for credit losses.
The bank noted strong new lending activity of $65.7 billion during the second quarter, which included growth in average total commercial loans of 11.2% over the second quarter of 2012 and 2.2% over the first quarter of 2013
U.S. Bancorp reported lower net charge-offs on both a linked quarter and year-over-year basis and said its provision for credit losses was $362 million in the second quarter – $30 million less than net charge-offs – compared to a $470 million charge a year earlier. Annualized net charge-offs to average total loans ratio declined to .70%.
U.S. Bancorp chairman, president and chief executive officer Richard K. Davis said, “Our company earned record net income of $1,484 million in the second quarter. In addition, we achieved profitability metrics that remain among the very best in our industry, including a return on average assets of 1.70%, return on average common equity of 16.1% and an efficiency ratio of 51.7%.”
To read the U.S. Bancorp news release click here.