U.S. Bancorp Profits Down 65% in Q4

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U.S. Bancorp, like many in its industry, has been slammed by profit losses.The St. Louis Business Journal reports:

U.S. Bancorp, holding company for St. Louis’ largest bank, said Wednesday its profit fell 65 percent in the fourth quarter of 2008 compared to the same period a year earlier, primarily due to higher provisions for credit losses.

Minneapolis-based U.S. Bancorp (NYSE: USB) reported net income of $330 million, or 15 cents per share, in fourth quarter 2008, compared to $942 million or 53 cents per share in the fourth quarter of 2007.

The firm recorded $253 million in securities losses in the fourth quarter of 2008. U.S. Bancorp increased the provision for credit losses in the recent quarter by $1.04 billion compared to the prior year’s quarter, to nearly $1.27 billion, reflecting continued stress in the residential real estate market, the company said.

U.S. Bancorp said its fourth-quarter revenue grew 1.4 percent to $3.6 billion on 22.6 percent higher net interest income while noninterest income decreased 19.2 percent as the slowing economy hit equity valuations and customer behavior, the company said.

Wait a second.
I just read in the WSJ that the US Treasury’s TARP program gave US Bancorp $6.6 billion in November. Since TARP has been executed under pretty liberal parameters, I wonder whether US Bank’s ReliaCard–in cahoots with the US Department of Labor–has something to do with the bailout arrangement.

Anyone have opinions on this?

Written by Drea Knufken

Drea Knufken

Currently, I create and execute content- and PR strategies for clients, including thought leadership and messaging. I also ghostwrite and produce press releases, white papers, case studies and other collateral.