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US Bancorp Disappoints: Fool by Numbers

On July 17, US Bancorp (NYSE: USB  ) released second-quarter earnings for the period ended June 30.

  • The flat yield curve and US Bancorp's commitment to credit quality squeezed net interest margins by 24 basis points year over year, and 17 basis points sequentially.

  • Non-interest expenses increased 7.2% year over year, compared to flat revenue growth. The company spent money ramping up growth initiatives, resulting in some front-loaded expenses.

  • Despite its mediocre results, the company continues to perform well, with returns on assets and equity of 2.1% and 23%, respectively.

  • In Motley Fool CAPS, the bank currently sports a so-so three-star rating. CAPS players must feel pretty average about the space, since fellow banks such as Wells Fargo (NYSE: WFC  ) and Bank of America (NYSE: BAC  ) also rate three stars.

(Figures in millions, except per-share data)

Income Statement Highlights

Q2 2007

Q2 2006


Total Revenue




Net Interest Income




Net Profit








Get back to basics with the income statement.

Margin Checkup

Q2 2007

Q2 2006


Net Interest Margin




Efficiency Ratio**




Nonperforming Assets / Assets




Return on Average Assets




Return on Average Equity




*Expressed in percentage points.
** Tangible efficiency ratio.

Margins are the earnings engine.

Balance Sheet Highlights


Q2 2007

Q2 2006


Cash & Investments









Q2 2007

Q2 2006






Total Liabilities




The balance sheet reflects the company's health.

Bank on further Foolishness:

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check for more of our in-depth discussion of what the numbers mean.

US Bancorp and Bank of America areMotley Fool Income Investor recommendations. Dividend-loving investors can try the service risk-free for 30 days.

Fool contributor Emil Lee is an analyst and a disciple of value investing. He doesn't own shares in any of the companies mentioned above. Emil appreciates your comments, concerns, and complaints. The Motley Fool's disclosure policy won't nickel-and-dime you.

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Related Tickers

11/24/2015 4:01 PM
USB $43.86 Up +0.08 +0.18%
US Bancorp CAPS Rating: ****
BAC $17.47 Down +0.00 +0.00%
Bank of America CAPS Rating: ****
WFC $55.28 Down -0.32 -0.58%
Wells Fargo CAPS Rating: *****