U.S. Bancorp third-quarter profit sinks 47%

U.S. Bancorp this morning released third-quarter results showing a 47.4 percent decline in net income compared to a year ago.

Diluted earnings per share were 32 cents, down 30 cents from 62 cents per share in third-quarter 2007. That includes securities valuation losses representing 18 cents per share and an incremental provision for 10 cents per share in credit losses, according to a news release.

Net income was $576 million, down 47.4 percent from $1.1 billion a year ago. Year-to-date net income is $2.6 billion, down 22.6 percent from $3.4 billion this time last year.

The Minneapolis-based bank had 16.7 percent growth in net interest income, 12.9 percent in average loan growth and 12.1 percent in average deposit growth for the quarter. Return on average assets was .94 percent, down from 1.95 percent, and return on average common equity was 10.8 percent, down from 21.7 percent.

"Strong year-over-year growth in average loans and deposits, an expanded net interest margin and higher fee-based revenue, demonstrated our ability - and ongoing opportunity - to provide banking products and services to our growing customer base," U.S. Bancorp Chairman, President and CEO Richard K. Davis said in the release. "Earnings per diluted common share of 32 cents were lower than both the previous quarter of 2008 and the same quarter of 2007, as current market conditions led to valuation losses on certain investments and higher credit costs."

U.S. Bancorp shares (NYSE: USB) closed Monday at $31.12 and were trading slightly down at $31 as of 10:30 a.m. today. The 52-week range is $20.57 to $42.23.[[In-content Ad]]