(By Balachander) U.S. Bancorp
) posted a 5 percent increase in earnings for the fourth quarter, helped by growth in net interest income and a lower provision for credit losses. Revenue was flat as noninterest income declined.
Net income attributable to U.S. Bancorp was $1.42 billion or $0.72 per share for the quarter, compared with $1.35 billion or $0.69 per share in the year-ago period. In the third quarter, USB earned 74 cents a share.
Net revenue was flat at $5.1 billion with the prior year period as a 4 percent rise in net interest income was offset by a 4.2 percent drop in noninterest income. On a sequential basis, revenue fell 1.3 percent.
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Wall Street analysts, on average, expected USB to earn $0.75 per share on revenue of $5.16 billion.
Net interest margin dropped to 3.55 percent for the quarter from 3.60 percent for the fourth quarter of last year and 3.59 percent in the previous quarter.
The provision for credit losses declined 11 percent and 9 percent from the year-ago period and the prior quarter, respectively.
Average total loans grew 6.4 percent and 1.5 percent from the comparable quarter of last year and linked quarter.
Tier 1 common ratio was 9.0 percent and Tier 1 capital ratio was 10.8 percent at December 31, the bank noted.
Minneapolis-based U.S. Bancorp, with $354 billion in assets as of Dec. 31, 2012, is the parent company of U.S. Bank National Association, the fifth largest commercial bank in the United States.
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The stock, which has been trading between $27.30 and $35.46 over the past 52 weeks, closed Tuesday's regular trading at $33.28.