U.S. Bank reports 6.5% earnings spike in 4Q

Net income for the fourth quarter was $1.2 billion, up from $1.14 billion the year before. Per-share earnings were 66 cents, a 6.5 percent increase from 62 cents in fourth-quarter 2005.

The company’s quarterly increase was offset partially by lower net interest income – down $90 million to $1.7 billion – and additional operating expenses of acquired businesses, including Vail Banks Inc. in Colorado and Wisconsin-based Schneider Payment Services.

“The company’s fourth-quarter results were driven by solid growth in our fee-based businesses, excellent credit quality and controlled operating expenses, in addition to a reduction in the effective tax rate,” U.S. Bancorp President and CEO Richard K. Davis said in a news release.

Net income for 2006 increased to $4.8 billion, or $2.61 per share, from $4.5 billion, or $2.42 per share, in 2005.

U.S. Bancorp shares (NYSE: USB) closed Monday at $35.29, compared to a 52-week range of $28.99 to $36.85.