On July 17, US Bancorp
- 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 |
Change |
|
|---|---|---|---|
|
Total Revenue |
$3,505 |
$3,452 |
1.5% |
|
Net Interest Income |
$1,650 |
$1,697 |
(2.8%) |
|
Net Profit |
$1,156 |
$1,201 |
(3.7%) |
|
EPS |
$0.65 |
$0.66 |
(1.5%) |
Get back to basics with the income statement.
Margin Checkup
|
Q2 2007 |
Q2 2006 |
Change* |
|
|---|---|---|---|
|
Net Interest Margin |
3.4% |
3.7% |
(0.2%) |
|
Efficiency Ratio** |
44.1% |
41.8% |
2.3% |
|
Nonperforming Assets / Assets |
0.4% |
0.4% |
0% |
|
Return on Average Assets |
2.1% |
2.3% |
(0.2%) |
|
Return on Average Equity |
23% |
24.3% |
(1.3%) |
** Tangible efficiency ratio.
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Cash & Investments |
$46,048 |
$45,696 |
0.8% |
|
Loans |
$148,232 |
$141,932 |
4.4% |
|
Liabilities |
Q2 2007 |
Q2 2006 |
Change |
|---|---|---|---|
|
Deposits |
$119,702 |
$122,719 |
(2.5%) |
|
Total Liabilities |
$202,200 |
$192,990 |
4.8% |
The balance sheet reflects the company's health.
Bank on further Foolishness:
- Money in the US Bancorp
- Warren Buffett's Priceless Investment Advice
- Fool on the Street: US Bancorp Holding Steady
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 Fool.com for more of our in-depth discussion of what the numbers mean.
US Bancorp and Bank of America are Motley 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.
