U.S. Bancorp Tops Forecasts

Its mortgage unit revenues almost double compared to last year

   

U.S. Bancorp Tops Forecasts

U.S. Bancorp (NYSE:USB) posted second-quarter earnings of $1.41 billion, up from $1.2 billion during the same time last year. Revenue rose 8.1% to $5.07 billion.

Adjusted EPS for the quarter was 73 cents, which topped analysts’ average estimate of 70 cents, Reuters noted.

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Don’t Buy Into Big Banks’ Hooey

Shares of U.S. Bancorp rose fractionally in Wednesday trading.

Income from real estate and wholesale banking jumped 21% to $330 million during the second quarter. Consumer and business banking income rocketed from $189 million in 2011 to $378 million this year.

The bank reported that total loans rose 8% to $214.06 billion, while revenue at its mortgage loan unit increased to $490 million, almost twice the amount recorded in the second quarter of 2011.

It also reduced its reserves against loan losses to $470 million, down 18% from $570 million last year.

U.S. Bancorp joins other manor banks, including Citigroup (NYSE:C), JPMorgan Chase (NYSE:JPM), Wells Fargo(NYSE:WFC) and Bank of America (NYSE:BAC) in reporting improved second-quarter results.

On Tuesday, the City of Los Angeles sued the bank, alleging that a subsidiary had created urban blight by permitting foreclosed properties to remain vacant until they became uninhabitable.


Article printed from InvestorPlace Media, http://investorplace.com/2012/07/u-s-bancorp-tops-forecasts/.

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