U.S. Bancorp Reports Fourth Quarter and Full Year
U.S. Bancorp Reports Fourth Quarter and Full Year 2012 Earnings
Achieves Record Total Net Revenue and Earnings for Full Year 2012
MINNEAPOLIS--(BUSINESS WIRE)--Jan. 16, 2013-- U.S. Bancorp (NYSE: USB) today reported net income of $1,420 million for the fourth quarter of 2012, or $.72 per diluted common share, and $5,647 million of net income, or $2.84 per diluted common share, for full year 2012. Included in the fourth quarter of 2012 results was a previously disclosed $80 million expense accrual for a mortgage foreclosure-related regulatory settlement, which reduced quarterly diluted earnings per common share by $.03.
Summary highlights for the full year of 2012 included:
Record full year 2012 net income of $5.6 billion, 15.9 percent higher than 2011
Record full year diluted earnings per common share of $2.84, 15.4 percent higher than 2011
Record full year total net revenue of $20.3 billion, 6.2 percent higher than 2011
Industry-leading performance measures, including return on average assets of 1.65 percent, return on average common equity of 16.2 percent and efficiency ratio of 51.5 percent
Positive full year operating leverage
Highlights for the fourth quarter of 2012 included:
Strong new lending activity of $71.5 billion during the fourth quarter, including:
$39.8 billion of new and renewed commercial and commercial real estate commitments
$2.6 billion of lines related to new credit card accounts
$29.1 billion of mortgage and other retail loan originations
Growth in average total loans of 6.4 percent over the fourth quarter of 2011 (8.6 percent excluding covered loans) and 1.5 percent on a linked quarter basis (6.0 percent annualized)
Growth in average total commercial loans of 15.7 percent over the fourth quarter of 2011 and 2.8 percent over the third quarter of 2012
Growth in average commercial and commercial real estate commitments of 15.6 percent year-over-year and 2.5 percent over the prior quarter
Significant growth in average deposits of 9.2 percent over the fourth quarter of 2011, including:
Growth in average noninterest-bearing deposits of 14.2 percent year-over-year and 6.6 percent over the third quarter
Growth in average total savings deposits of 6.6 percent year-over-year and 3.7 percent over the third quarter
Net interest income growth of 4.1 percent over the fourth quarter of 2011
Average earning assets growth of 5.8 percent year-over-year and 1.1 percent on a linked quarter basis
Continued strong growth in lower cost core deposit funding on a year-over-year and linked quarter basis
Net interest margin of 3.55 percent for the fourth quarter of 2012, compared with 3.60 percent for the fourth quarter of 2011, and 3.59 percent for the third quarter of 2012
Positive operating leverage and an improved efficiency ratio on a year-over-year basis
Net charge-offs declined on both a linked quarter and year-over-year basis. Provision for credit losses was $25 million less than net charge-offs
Net charge-offs were $70 million lower than the third quarter of 2012; third quarter of 2012 included $54 million of incremental charge-offs due to a regulatory clarification
Annualized net charge-offs to average total loans ratio declined to .85 percent
Excluding covered loans, allowance to period-end loans was 2.15 percent at year end
Nonperforming assets declined on both a linked quarter and year-over-year basis
Nonperforming assets (excluding covered assets) decreased 4.6 percent from the third quarter of 2012 (5.8 percent including covered assets)
Allowance to nonperforming assets (excluding covered assets) was 218 percent at year end, compared with 213 percent at September 30, 2012, and 191 percent at December 31, 2011
Capital generation continues to reinforce capital position; ratios at December 31, 2012 were:
Tier 1 capital ratio of 10.8 percent
Total risk based capital ratio of 13.1 percent
Tier 1 common equity to risk-weighted assets ratio of 9.0 percent
Tier 1 common equity ratio of approximately 8.1 percent using proposed rules for the Basel III standardized approach released June 2012
Supplemental Business Line Schedules 4Q 2012
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