Minneapolis-based U.S. Bancorp (NYSE: USB) yesterday reported first-quarter earnings of $1.34 billion, a 28 percent increase compared to net income of $1.05 billion in the corresponding quarter of the prior year.
The holding company, which operates eight U.S. Bank branches in Springfield, recorded 67-cent earnings per share during the quarter, 15 cents higher than first-quarter 2011, according to a news release.
"U.S. Bancorp's first quarter 2012 financial results clearly demonstrate that the momentum the company has established and built over the past several years is continuing to drive performance in 2012," U.S. Bancorp Chairman, President and CEO Richard Davis said in the release. The company
recorded record profits of $1.35 billion in the fourth quarter, pushing its year-end earnings to $4.87 billion.
U.S. Bancorp officials credited growth in net revenue and a lower provision for credit losses for its earnings in its latest quarter ended March 31.
Total net revenue grew 9.1 percent to $4.52 billion, driven in part by a 12 percent increase in higher merchant processing-services revenue, a 10.5 percent increase in higher commercial-products revenue and a 7 percent increase in higher deposit service charges. At $481 million, provision for credit losses was 36.3 percent lower than in the first quarter of the prior year, when the company recorded a figure of $755 million, according to the release.
First-quarter 2012 financial highlights:
- U.S. Bancorp drew in $56 billion in new lending activity, including $28.9 billion in new and renewed commercial and commercial real estate commitments, $25.1 billion in mortgage and other retail lending, and $2 billion in lines of credit related to new credit card accounts.
- Net interest income grew 7.3 percent to $2.69 billion from $2.5 billion, noninterest income rose 11.3 percent to $2.24 billion and noninterest expense increased 10.6 percent to $2.56 billion.
- The company authorized a share repurchase program of 100 million shares through March 2013 and repurchased 16 million shares of common stock during the first quarter.
As of March 31, U.S. Bancorp had $341 billion in assets and operated 3,080 branches in 25 states, the release said.
The company's shares were trading at $31.37 as of 11:18 a.m., compared to a 52-week range of $20.10 to $32.23.[[In-content Ad]]
