Summary
U.S. Bancorp's (USB) third quarter 2010 10-Q filing highlights significant uncertainty stemming from the recently enacted Dodd-Frank Wall Street Reform and Consumer Protection Act. Management expects this legislation, upon full implementation, to adversely impact financial results through various provisions including the creation of a Consumer Financial Protection Bureau, changes to deposit insurance assessments, potential regulatory caps on interchange fees, and the exclusion of certain capital instruments from Tier 1 capital calculations. While the precise financial impact remains unquantifiable at this stage, the company anticipates detrimental effects on both revenues and expenses. Investors should note that the Dodd-Frank Act's phased-in exclusion of certain capital instruments, currently boosting the Tier 1 capital ratio by 1.4%, is set to begin in 2013. The majority of the act's provisions require further rulemaking, adding another layer of uncertainty to the future operating environment. Beyond this legislative risk, investors are directed to the company's 2009 10-K for a comprehensive discussion of other potential risks affecting business, financial results, and stock price.
Financial Highlights
36 data points| Interest Expense | $653.00M |
| Net Income | $908.00M |
| EPS (Basic) | $0.46 |
| EPS (Diluted) | $0.45 |
| Shares Outstanding (Basic) | 1.91B |
| Shares Outstanding (Diluted) | 1.92B |
Key Highlights
- 1The Dodd-Frank Act poses a significant future risk, with expected adverse impacts on financial results, revenues, and expenses.
- 2Key provisions of Dodd-Frank include the establishment of a Consumer Financial Protection Bureau and changes to deposit insurance assessments.
- 3Interchange fees for debit card transactions may be subject to regulatory rate-setting.
- 4Certain capital instruments, currently increasing Tier 1 capital by 1.4%, will be excluded from Tier 1 regulatory capital calculations starting in 2013, with a three-year phase-in.
- 5The full financial impact of Dodd-Frank and related future rulemaking is currently unquantifiable.
- 6Investors are referred to the 2009 10-K for a broader discussion of other existing risk factors.