U.S. Bancorp Edges Out Earnings Estimates

U.S. Bancorp is the latest financial firm to release its fourth quarter earnings, and it actually bucked the broader trend this time around. The company posted net earnings of 79 cents per share on $5.17 billion in revenue. Analysts had been expecting earnings of 77 cents per share on $5.01 billion in revenue. In the same quarter a year ago, US Bancorp posted net earnings of 76 cents per share.

Breakdown of U.S. Bancorp’s fourth quarter earnings report

The bank posted a 5.9% year over year growth rate in average total loans. Excluding the Charter One acquisition, growth was 5.5%. Total commercial loans rose 15.5%, while average total commercial real estate loans grew 4.2%. Average commercial and commercial real estate commitments increased 13.3% year over year.

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U.S. Bancorp reported $63.9 billion in fourth quarter lending activity and 11.1% growth in average earning assets. Net charge-offs fell 8.3% sequentially and 1.3% year over year. Non-performing assets fell 11.2% year over year and 6% quarter over quarter. Average total deposits grew 7.2% year over year and 1.6% quarter over quarter.

The bank reported a Common Equity Tier 1 Capital Ratio of 9.7% under the Basel III transitional standardized approach. U.S. Bancorp’s Tier 1 Capital Ratio was 11.3%, while its total risk-based capital ratio was 13.6%.

U.S. Bancorp returned 66% of its fourth quarter earnings during the quarter, buying back 11 million shares and paying out diidends.

U.S. Bancorp posts record full year earnings

For the full year, US Bancorp reported record diluted earnings per share of $3.08, a 2.7% year over year increase. The bank reported a 1.54% rate of return on average assets and a 14.7% return on average common equity. Its efficiency ratio for the full year was 53.2%.

During the year, the firm returned 72% of its earnings to shareholders via share repurchases and dividends.

“As we head into 2015, we remain committed to investing in a strategy centered on helping our retail, wholesale and institutional customers establish financially secure futures,” said US Bancorp President, Chairman and CEO Richard Davis in a statement this morning. “We are well positioned for growth as the economic environment shows signs of improvement and our customers look for a strong and stable banking partner to help them achieve their distinct financial goals and objectives.”

As of this writing, shares of U.S. Bancorp were inactive in premarket trading after this morning’s earnings report.