US BancorpUSB

Morningstar Rating

Stock Research and Analysis

by Jaime Peters, CFA, CPA

With a footprint stretching from the West Coast to the Midwest, US Bancorp is a conservative, customer-focused bank where profitability has been shielded by two strong sources of fee income. Poised with a strong capital position, we think this company Read more

Bulls Say

Returns on equity have consistently exceeded 20%. Even during this downturn, the company has remained profitable to common shareholders each and every quarter.

A strong capital base and solid bottom line have allowed US Bancorp to grow while much of the industry is trying to shrink in this downturn. Read more

Bears Say

A new rule by the Federal Reserve will reduce US Bank's deposit service charges at a time when it could be still struggling with elevated loan losses..

Management has set lofty earnings and profitability goals for such a large bank. Meeting these targets may pressure it to take unsafe risks, which could be detrimental to the long-term interests of the bank. Read more

Strategy

US Bancorp is taking advantage of the credit crisis by buying deposits and branches cheaply from the FDIC. Four failed bank purchases and a branch acquisition of another failed bank has bulked up its Read more

Management

Richard Davis became CEO in December 2006 and chairman of the board a year later, replacing Jerry Grundhofer. Davis has been with US Bancorp since 1998, coming to the bank through its merger with Firstar. Davis has not significantly altered the conservative Read more

Profile

US Bancorp is a $282 billion financial institution. Its banking business stretches through the Midwest and western United States. Additionally, a sizable asset management Read more

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