US Bank 2009 Annual Report Download - page 60

including those to more closely align capital allocation with
Basel II requirements and to allocate the provision for credit
losses based on net charge-offs and changes in the risks of
specific loan portfolios. Previously, the provision in excess of
net charge-offs remained in Treasury and Corporate
Support, and the other lines of business’ results included
only the portion of the provision for credit losses equal to
net charge-offs. Accordingly, 2008 results were restated and
presented on a comparable basis. Due to organizational and
methodology changes, the Company’s basis of financial
presentation differed in 2007. The presentation of
comparative business line results for 2007 is not practical
and has not been provided.
Wholesale Banking Wholesale Banking offers lending,
equipment finance and small-ticket leasing, depository,
treasury management, capital markets, foreign exchange,
international trade services and other financial services to
middle market, large corporate, commercial real estate,
financial institution and public sector clients. Wholesale
Banking contributed $240 million of the Company’s net
income in 2009, or a decrease of $662 million (73.4 percent)
compared with 2008. The decrease was primarily driven by
higher provision for credit losses and noninterest expense,
partially offset by higher net revenue.
Total net revenue increased $171 million (5.8 percent)
in 2009, compared with 2008. Net interest income, on a
58 U.S. BANCORP
Table 22 Line of Business Financial Performance
Year Ended December 31 (Dollars in Millions) 2009 2008
Percent
Change 2009 2008
Percent
Change
Wholesale
Banking
Consumer
Banking
Condensed Income Statement
Net interest income (taxable-equivalent basis) . . . . . . . . . . . . . . . . . . . $ 2,144 $ 2,091 2.5% $ 4,049 $ 3,898 3.9%
Noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 985 886 11.2 2,941 2,081 41.3
Securities gains (losses), net. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (3) (22) 86.4 – – –
Total net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,126 2,955 5.8 6,990 5,979 16.9
Noninterest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,090 1,037 5.1 3,575 3,162 13.1
Other intangibles. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 24 21 14.3 89 62 43.5
Total noninterest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,114 1,058 5.3 3,664 3,224 13.6
Income before provision and income taxes . . . . . . . . . . . . . . . . . . 2,012 1,897 6.1 3,326 2,755 20.7
Provision for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,635 473 * 1,884 1,428 31.9
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 377 1,424 (73.5) 1,442 1,327 8.7
Income taxes and taxable-equivalent adjustment . . . . . . . . . . . . . . . . . 138 522 (73.6) 525 484 8.5
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 239 902 (73.5) 917 843 8.8
Net (income) loss attributable to noncontrolling interests . . . . . . . . . . . . 1 – * – – –
Net income attributable to U.S. Bancorp . . . . . . . . . . . . . . . . . . . . . . . $ 240 $ 902 (73.4) $ 917 $ 843 8.8
Average Balance Sheet
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $39,802 $40,233 (1.1)% $ 6,246 $ 6,779 (7.9)%
Commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21,490 19,203 11.9 11,487 11,338 1.3
Residential mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 84 88 (4.5) 24,006 22,779 5.4
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 53 75 (29.3) 44,398 41,028 8.2
Total loans, excluding covered assets . . . . . . . . . . . . . . . . . . . . . . . 61,429 59,599 3.1 86,137 81,924 5.1
Covered assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – 9,507 1,308 *
Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 61,429 59,599 3.1 95,644 83,232 14.9
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,474 1,424 3.5 3,169 2,484 27.6
Other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 90 65 38.5 1,658 1,717 (3.4)
Assets. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,839 64,892 1.5 109,056 94,207 15.8
Noninterest-bearing deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17,478 11,146 56.8 14,099 12,230 15.3
Interest checking. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,849 8,248 43.7 20,805 18,731 11.1
Savings products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9,270 6,600 40.5 26,535 20,716 28.1
Time deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,043 15,652 (16.7) 25,111 19,024 32.0
Total deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 51,640 41,646 24.0 86,550 70,701 22.4
Total U.S. Bancorp shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . 5,598 6,122 (8.6) 7,051 5,870 20.1
* Not meaningful