U.S. Bancorp earnings down 19 percent

SBJ Staff

Posted online July 25, 2008 | 7:42 am

Minneapolis-based U.S. Bancorp, the holding company for U.S. Bank, reported on July 15 that earnings per diluted share dropped 18.5 percent in the second quarter from the same period in 2007.

Per-share earnings were 53 cents in second quarter 2008, down 12 cents from a year earlier. Net income totaled $950 million, down 17.8 percent from a year ago. Significant items from the quarter included net securities losses of $63 million, which reduced earnings per diluted share by about 11 cents.

“As predicted, credit costs continued to climb this quarter,” said president and CEO Richard K. Davis in a news release. “Despite this upward trend, credit costs are expected to be manageable for our company as we continue to produce solid core operating results.”

Net interest income totaled $1.91 billion, up 15.6 percent from the second quarter of 2007. The company posted net charge-offs of $396 million for the quarter, in addition to an incremental provision for credit losses of $200 million.

Shares of U.S. Bancorp (NYSE: USB) closed Wednesday at $30.60, compared to a 52-week range of $20.57 to $35.25.

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