U.S. Bancorp (USB) has reported a marginal increase of 0.14 percent in profit for the quarter ended Dec. 31, 2016. The company has earned $1,478 million, or $0.82 a share, compared with $1,476 million or $0.80 a share, a year ago.
Revenue during the quarter grew 3.91 percent to $5,044 million from $4,854 million in the previous year period. Net interest income for the quarter rose 4.82 percent over the prior year period to $2,955 million. Non-interest income for the quarter rose 3.89 percent over the last year period to $2,431 million.
U.S. Bancorp has made provision of $342 million for loan losses during the quarter, up 12.13 percent from $305 million in the same period last year.
Net interest margin contracted 8 basis points to 2.98 percent in the quarter from 3.06 percent in the last year period. Efficiency ratio for the quarter deteriorated to 55.30 percent from 53.90 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
U.S. Bancorp chairman and chief executive officer Richard K. Davis said, "U.S. Bancorp delivered an outstanding performance in 2016 with record net income, EPS, and revenue. In a challenging year where the economic environment was often unpredictable, we delivered industry-leading returns, we made important investments in our long-term growth strategy, and we returned 79 percent of our earnings to shareholders through dividends and share buybacks. "As importantly, the fundamental elements of our core businesses are solid and we are well positioned for growth as we enter 2017. With an intense focus on our customers and providing them with innovative products and services, we are optimistic we will continue to create outstanding value for our shareholders, customers, and communities.
Liabilities outpace assets growth
Total assets stood at $445,964 million as on Dec. 31, 2016, up 5.72 percent compared with $421,853 million on Dec. 31, 2015. On the other hand, total liabilities stood at $398,031 million as on Dec. 31, 2016, up 6.13 percent from $375,036 million on Dec. 31, 2015. Deposits stood at $334,590 million as on Dec. 31, 2016, up 11.38 percent compared with $300,400 million on Dec. 31, 2015.
Investments stood at $109,275 million as on Dec. 31, 2016, up 3.49 percent or $3,688 million from year-ago. Shareholders equity stood at $47,933 million as on Dec. 31, 2016, up 2.38 percent or $1,116 million from year-ago.
Return on average assets moved down 9 basis points to 1.32 percent in the quarter from 1.41 percent in the last year period. At the same time, return on average equity decreased 60 basis points to 13.10 percent in the quarter from 13.70 percent in the last year period.
Nonperforming assets moved up 5.25 percent or $80 million to $1,603 million on Dec. 31, 2016 from $1,523 million on Dec. 31, 2015.
Book value per share was $24.63 for the quarter, up 5.80 percent or $1.35 compared to $23.28 for the same period last year.
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