US Bank, the country’s fifth-largest bank by
assets, has posted an analyst-beating first half set of results,
with net income up 43.5% year-on-year to $1.43bn.
Second quarter net profits of $766m
represented a 63% increase from the second quarter last year.
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Boosted by recent acquisitions, US Bank’s
total deposits increased by 13% from the first half of fiscal 2009,
to $182.9bn; excluding deposits from acquisitions, average total
deposits increased by 4.1%.
US Bank’s net interest margin in the first
half, rose by 31 basis points from a year ago to 3.9%.
In the second quarter, US Bank reported record
revenue, boosted by loan-loss provisions declining to $1.14
billion, down from $1.4 billion in the year-ago quarter and $1.31
billion in the prior quarter.
Among few negative metrics, consumer banking
second quarter net income of $178m was down 15.6% from the
corresponding period last year.
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By GlobalDataTotal non-interest income for the retail
banking division decreased 7% from a year ago, due to lower deposit
service charges and reduced overdraft fees.
“On-going investments and business line growth
initiatives, as well as recent acquisitions, contributed to the
increase in net revenue,” said US Bank president, chairman and CEO
Richard Davis.
“Growth in earning assets and deposits,
coupled with an expanded net interest margin, led to a 14.5%
increase in net interest income year-over-year.”
US Bank was one of only three of the biggest 10 US banks by branches
to increase its branch network in the past 12 months, up by 100
units to 3,002 outlets.
