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U.S. Bancorp Reports Record Earnings for the Second Quarter of 2012

July 19, 2012, 06:42 AM
Filed Under: Corporate Earnings
Related: U.S. Bancorp

U.S. Bancorp reported net income of $1,415 million for the second quarter of 2012. Earnings for the second quarter of 2012 were driven by year-over-year growth in total net revenue and a lower provision for credit losses.

Highlights for the second quarter of 2012 include:

  • Strong new lending activity of $67.2 billion during the second quarter, including: $36.7 billion of new and renewed commercial and commercial real estate commitments.
  • Growth in average total commercial loans of 19.9 percent over the second quarter of 2011 and 5.1 percent over the first quarter of 2012.
  • Total net revenue growth of 8.1 percent over the second quarter of 2011 and 2.8 percent on a linked quarter basis.
  • Net charge-offs and nonperforming assets declined on a linked quarter and year-over-year basis. Provision for credit losses was $50 million less than net charge-offs.  Net charge-offs declined 8.9 percent from the first quarter of 2012.

U.S. Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said, “I am exceptionally proud of our Company’s second quarter 2012 results, as we reported record diluted earnings per common share of $.71, an 18.3 percent increase over the prior year’s quarter and a 6.0 percent increase over the first quarter of 2012. Further, our performance metrics remained industry-leading and within the range of our long-term objectives, with a return on average assets of 1.67 percent, a return on average common equity of 16.5 percent and an efficiency ratio of 51.1 percent. Our results benefited from solid balance sheet and fee income growth this quarter. Both average loans and average deposits increased over the second quarter of last year and the prior quarter. On a linked quarter basis, average total loans grew by 1.9 percent, slightly higher than the linked quarter growth we experienced in the first quarter, driven once again by the commercial loan and residential mortgage categories, indicating that we are continuing to gain market share. “

Read the full U.S. Bancorp Second Quarter 2012 news release.

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