US Bancorp has reported net income of $603 million for the third quarter of 2009, higher than the $576 million for the third quarter of 2008 and $471 million for the second quarter of 2009. The Minneapolis-based bank also reported record revenue of $4.3 billion during the quarter—up from $3.4 billion during the same period last year.
However, the bank’s results were impacted by three significant items, including $415 million of provision for credit losses in excess of net charge-offs, $76 million of net securities losses and a $39 million gain related to the company’s investment in Visa. These significant items, in total, reduced diluted earnings per common share by approximately $0.19 in the third quarter of 2009.
Richard Davis, chairman, president and CEO of US Bancorp, said: “The company’s capital position remains solid with a Tier 1 capital ratio of 9.5% and a total risk-based capital ratio of 13%. Our capital ratios continue to be considerably above the well-capitalized level as defined by the regulators following our repayment of the preferred stock issued under the US Treasury’s Capital Purchase Program in the second quarter of 2009. ”
“Our third quarter results reaffirmed that our fundamental businesses remain strong and that our unique, independent position has and will differentiate US Bancorp from its competitors. We are focused on maintaining our core operational and financial strength, while investing for growth and remaining poised to capitalize on the recovery.”
