US Bank 2009 Annual Report Download - page 7
Download and view the complete annual report
Please find page 7 of the 2009 US Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.U.S. BANCORP 5
evidenced by the deeper customer relationships that we
have established in the past year.
While many of our peers are downsizing, restructuring,
or exiting businesses — we are expanding. Additionally,
during 2009, U.S. Bancorp’s business model remained
intact; our simple business strategies proved themselves,
and they continue to be our blueprint for the future.
This stability allowed us to continue our focus on growing
our businesses, adding to our franchise, increasing market
share, further developing our employee talent and taking
advantage of opportunities for acquisitions that will
strengthen U.S. Bancorp in the future. While last year may
have been a time for many to retrench and focus on the
present — we were investing in our company and focusing
on the future.
Continuing strength
U.S. Bancorp’s fourth quarter and full year 2009 earnings
fully refl ected the strength and quality of our company.
We achieved record total net revenue for both the quarter
and the year; a record $4.4 billion for the fourth quarter
and a record $16.7 billion for the full year 2009. The strong
growth in net revenue, the result of our expanding balance
sheet and fee-based businesses, as well as recent
investments in our branch network and various growth initia-
tives, was the primary driver behind the increase in fourth
quarter earnings compared with the same period of 2008.
Perhaps the most important variables during this economic
recession are asset quality and credit costs. In fact, the
provision for credit losses for 2009 was $2.5 billion higher
than 2008. For the fourth quarter, credit costs, including the
cost of building the allowance for credit losses, were higher
than the same quarter of 2008, but lower than the
previous quarter. This moderation on a linked quarter basis
is an indication that slower-paced credit deterioration is
forthcoming. While a slower rise in net charge-offs and
non-performing assets is a very positive trend, both are
still increasing, and accordingly, we continued to increase
the allowance for credit losses. When we are confi dent
that there is a sustained and predictable decrease in net
charge-offs and non-performing assets, rather than merely
a slower pace, we will declare that we have fi nally “turned the
corner.” As I have stated previously, I expect U.S. Bancorp
entered this recession later and will exit this recession
earlier than most of our peers.
Richard K. Davis
Chairman, President and Chief Executive Officer