Daily News: October 17, 2012

U.S. Bancorp Reports Record Q3 Earnings, Revenue

U.S. Bancorp reported record net income of $1,474 million for the third quarter of 2012, up from $1,273 million or 15.8% higher compared to the third quarter of 2011. The bank noted that third quarter earnings were driven by record total net revenue of $5.2 billion.

Year-to-date net income was $4,227 million, up 20% compared to $3,522 million one year-ago.

The bank said that net charge-offs declined 19.6% year-over-year with provision charges of $488 million, down from $519 million in 2011.
Nonperforming commercial loans dropped from $342 million at quarter-end 2011 to $133 million at the end of the current quarter. Lease financing nonperforming loans were less than half compared to the previous year at $19 million compared to $40 million in 2011.

U.S. Bancorp chairman, president and chief executive officer Richard K. Davis said, “I am very proud to announce our company’s third-quarter results. U.S. Bancorp, today, reported record net income of $1.5 billion on record total net revenue of $5.2 billion. Once again, we achieved industry-leading performance metrics with returns on average assets and average common equity of 1.70% and 16.5%, respectively, as well as an efficiency ratio of 50.4%. Additionally, we posted positive operating leverage on both a year-over-year and linked quarter basis, and we achieved these results despite an economy described as only modestly growing and burdened by uncertainty.”

To read the earnings news release, click here.