U.S. Bancorp Q4 net income $1,476 million, $0.80 per shareStaff writer ▼ | January 16, 2016
U.S. Bancorp reported net income of $1,476 million for the fourth quarter of 2015, or $0.80 per diluted common share.
U.S. Bancorp A gain on the sale of a deposit portfolio
The fourth quarter of 2015 reflected a gain on the sale of a deposit portfolio, partially offset by accruals related to legal and compliance matters that, combined, increased diluted earnings per common share by $.01.
Net income attributable to U.S. Bancorp was $1,476 million for the fourth quarter of 2015, 0.8 percent lower than the $1,488 million for the fourth quarter of 2014, and 0.9 percent lower than the $1,489 million for the third quarter of 2015.
Diluted earnings per common share of $0.80 in the fourth quarter of 2015 were $0.01 higher than the fourth quarter of 2014 and $0.01 lower than the previous quarter.
The decrease in net income year-over-year was due to a higher provision for credit losses, lower noninterest income, impacted by the 2014 Nuveen gain, partially offset by increases in payments-related revenue and trust and investment management fees and the gain on the sale of a Health Savings Account deposit portfolio (SA deposit sale), along with an increase in net interest income primarily driven by growth in earning assets.
The decrease in net income on a linked quarter basis was primarily due to a seasonal increase in noninterest expense and the provision for credit losses, partially offset by higher net interest income primarily due to loan growth.
U.S. Bancorp Chairman, president and chief executive officer Richard K. Davis said, “U.S. Bancorp delivered a remarkable performance in 2015; a year underscored by persistent and historically low interest rates, modest economic growth, and increasing regulatory requirements.
“More than any year in recent history, 2015 required strong management focus as we balanced decisions on operating efficiencies with opportunities for investing in future growth and addressing our customers’ needs. U.S. Bancorp rose to that challenge, delivering record net income and diluted EPS for the year and continuing with industry-leading performance metrics.
“We are well positioned as we move into 2016 – as indicated by our record fourth quarter revenue, strong momentum toward positive operating leverage during the quarter and the continued stability in our net interest margin.
“We also created value for our shareholders as we returned 72 percent of our 2015 earnings back to shareholders through dividends and share buybacks. ■