US Bank has reported
record net income of $1.27bn for the third quarter of 2011, up
40.2% year-on-year and stressed its commitment to maintaining its
free checking account.
Net interest income rose
by 5.9% to $2.62bn while non-interest income increased by 2.9% to
$2.17bn.
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For the year to date, US
Bank’s net profit of $3.52bn is up 50.3%.
The retail focused
Consumer and Small Business division of US Bank posted net income
for the nine months to 30 September of $556m, up
3.0%.
US Bank’s total assets
increased by 13.6% year-on-year to $330.1bn.
US Bank ended the third
quarter with a branch network of 3,089 outlets, up 2.5% or a net 83
units from a year ago.
US Bank chairman and CEO
Richard Davis, said:
“I am exceptionally
proud of our third quarter results….record earnings in what many
would describe as a difficult and uncertain economic
environment.
“Contributing to the
results was notable growth in both loans and deposits.
“Net charge-offs
declined by over 10%, while non-performing assets fell by nearly 7%
percent in the third quarter versus the prior quarter.”
Average total loans grew
by 5.0% year-over-year while average deposits soared by 17.9%
(13.2% excluding acquisitions) to $215.4bn over the third quarter
of 2010.
US Bank’s cost-income
ratio also moved in the right direction, down by 40 basis points
from a year ago to 51.5% in the third quarter.
Negative metrics were
thin on the ground but US Bank’s net interest margin fell by 26
basis points to 3.65%.
US Bank said that the
year-over-year decline was due to increases in lower yielding
investment securities and cash balances at the Federal
Reserve.
Mortgage banking revenue
also fell, by 21% to $245m.
US Bank to keep
free checking
In a bold affirmation of
its commitment to offering free checking accounts, US Bank said
that it would not follow the lead of rivals such as Bank of America
and Chase, in charging a monthly fee for debit
cardholders.
But US Bank will press
ahead with plans to axe its debit card rewards programme from 1
November. Existing loyalty programme cardholders will require
redeem their rewards points by next April.
