U.S. Bancorp reports double-digit declines

U.S. Bancorp closed 2008 with a 32 percent decline in profit due mostly to increased credit losses, the Minneapolis-based bank reported this morning.

The bank had $2.95 billion in net income for the year, compared to $4.32 billion in 2007. Earnings per share were $1.61, down from $2.43 the year before.

For the fourth quarter, net income fell 65 percent to $330 million, compared to $942 million in fourth-quarter 2007. Earnings per share were 15 cents, down from 53 cents a year earlier.

The bank had $253 million in securities losses in the quarter. It also increased allowance for credit losses by recording $635 million of provision for credit losses in excess of net charge-offs.

Total average loans outstanding grew by $19.2 billion in 2008.

"The results were marked by outstanding growth in loans and deposits and an expanded net-interest margin but tempered by the unfavorable impact of higher credit losses and securities impairments," U.S. Bancorp Chairman, President and CEO Richard K. Davis said in a news release.

Shares (NYSE: USB) closed Tuesday at $15.34 - a 52-week low - and were trading down at $12.36 at 10 a.m. The 52-week high is $42.23.