Summary
U.S. Bancorp's first quarter of 2009 results reflect a challenging economic environment, with net income attributable to the company falling 51.5% to $529 million ($0.24 per diluted share) compared to $1.09 billion ($0.62 per diluted share) in the first quarter of 2008. This decline was primarily driven by a significant increase in the provision for credit losses, which surged by $833 million year-over-year to $1.318 billion, reflecting continued stress in residential real estate markets and deteriorating economic conditions impacting loan portfolios. Net charge-offs also rose substantially to $788 million from $293 million. Despite these headwinds, total net revenue saw a slight increase of 0.2% to $3.883 billion, largely due to a 14.5% rise in net interest income, benefiting from loan growth and a higher net interest margin. However, noninterest income decreased by 13.5%, impacted by the absence of a significant gain recorded in the prior year and weaker consumer and business spending. The company also experienced a 5.2% increase in noninterest expense, largely due to costs associated with acquisitions. U.S. Bancorp maintained strong capital ratios, exceeding regulatory requirements, and successfully passed the Federal Reserve's capital adequacy assessment, indicating no need to raise additional capital.
Financial Highlights
20 data points| Interest Expense | $820.00M |
| Net Income | $529.00M |
| EPS (Basic) | $0.24 |
| EPS (Diluted) | $0.24 |
| Shares Outstanding (Basic) | 1.75B |
| Shares Outstanding (Diluted) | 1.76B |
Key Highlights
- 1Net income attributable to U.S. Bancorp decreased by 51.5% to $529 million in Q1 2009, compared to $1.09 billion in Q1 2008.
- 2Provision for credit losses increased dramatically by $833 million to $1.318 billion, signaling significant deterioration in loan quality.
- 3Net charge-offs rose sharply to $788 million, up from $293 million in the prior year's quarter.
- 4Total net revenue remained relatively flat, up 0.2% to $3.883 billion, driven by a 14.5% increase in net interest income.
- 5Noninterest income declined by 13.5%, negatively impacted by the absence of a prior-year gain and a weaker economy.
- 6Noninterest expense increased by 5.2% to $1.871 billion, partly due to recent acquisitions.
- 7Capital ratios remained strong, exceeding regulatory requirements, and the company passed the Federal Reserve's stress test, not requiring additional capital.