US Bank 2001 Annual Report Download - page 5

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U.S. Bancorp
Percent Change Percent Change
(Dollars in Millions, Except Per Share Data) 2001 2000 1999 2001 2000
Operating earnings (a) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 2,550.8 $ 3,106.9 $ 2,799.0 (17.9)%11.0%
Merger and restructuring-related items (after-tax) . . . . . . . . . . . . . . . (844.3) (231.3) (417.2)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,706.5 $ 2,875.6 $ 2,381.8 (40.7)20.7
Per Common Share
Earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ .89 $ 1.51 $ 1.25 (41.1)% 20.8%
Diluted earnings per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .88 1.50 1.23 (41.3) 22.0
Dividends declared per share (b) . . . . . . . . . . . . . . . . . . . . . . . . . . . .75 .65 .46 15.4 41.3
Book value per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8.43 7.97 7.23 5.8 10.2
Market value per share . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20.93 23.25 21.13 (10.0) 10.0
Financial Ratios
Return on average assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.03% 1.81% 1.59%
Return on average equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10.5 20.0 18.0
Net interest margin (taxable-equivalent basis) . . . . . . . . . . . . . . . . . . 4.45 4.36 4.44
Efficiency ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 57.5 51.9 55.7
Financial Ratios Excluding Merger and
Restructuring-Related Items (a)
Return on average assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1.54% 1.96% 1.86%
Return on average equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15.7 21.6 21.2
Efficiency ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 49.5 48.8 50.5
Banking efficiency ratio (c) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 45.2 43.5 46.3
Average Balances
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $118,177 $118,317 $109,638 (.1)% 7.9%
Earning assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 145,165 140,606 133,757 3.2 5.1
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 165,944 158,481 150,167 4.7 5.5
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 104,956 103,426 99,920 1.5 3.5
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,201 14,365 13,221 12.8 8.7
Period End Balances
Loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $114,405 $122,365 $113,229 (6.5)% 8.1%
Allowance for credit losses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,457 1,787 1,710 37.5 4.5
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 171,390 164,921 154,318 3.9 6.9
Deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 105,219 109,535 103,417 (3.9) 5.9
Total shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 16,461 15,168 13,947 8.5 8.8
Regulatory capital ratios
Tangible common equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5.7% 6.3% 6.7%
Tier 1 capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7 7.2 7.4
Total risk-based capital . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11.7 10.6 11.0
Leverage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7.7 7.4 7.5
Financial Summary
(a) The Company analyzes its performance on a net income basis in accordance with accounting principles generally accepted in the United States, as well as on an operating
basis before merger and restructuring-related items referred to as “operating earnings.” Operating earnings are presented as supplemental information to enhance the reader’s
understanding of, and highlight trends in, the Company’s financial results excluding the impact of merger and restructuring-related items of specific business acquisitions and
restructuring activities. Operating earnings should not be viewed as a substitute for net income and earnings per share as determined in accordance with accounting principles
generally accepted in the United States. Merger and restructuring-related items excluded from net income to derive operating earnings may be significant and may not be
comparable to other companies.
(b) Dividends per share have not been restated for the 2001 merger of Firstar and the former U.S. Bancorp (“USBM”).
(c) Without investment banking and brokerage activity.
Forward-Looking Statements
This Annual Report and Form 10-K contains forward-looking statements. Statements that are not historical or current facts, including statements about beliefs and expectations,
are forward-looking statements. Forward-looking statements involve inherent risks and uncertainties, and important factors could cause actual results to differ materially from
those anticipated, including the following, in addition to those contained in the Company’s reports on file with the SEC: (i) general economic or industry conditions could be
less favorable than expected, resulting in a deterioration in credit quality, a change in the allowance for credit losses, or a reduced demand for credit or fee-based products
and services; (ii) the Company could encounter unforeseen complications in connection with the ongoing integration of the products, operations and information systems of
Firstar with USBM that could adversely affect the Company’s operations or customer relationships; (iii) changes in the domestic interest rate environment could reduce net
interest income and could increase credit losses; (iv) the conditions of the securities markets could change, adversely affecting revenues from capital markets businesses, the
value or credit quality of the Company’s assets, or the availability and terms of funding necessary to meet the Company's liquidity needs; (v) changes in the extensive laws,
regulations and policies governing financial services companies could alter the Company's business environment or affect operations; (vi) the potential need to adapt to industry
changes in information technology systems, on which the Company is highly dependent, could present operational issues or require significant capital spending; (vii) competitive
pressures could intensify and affect the Company's profitability, including as a result of continued industry consolidation, the increased availability of financial services from
non-banks, technological developments, or bank regulatory reform; (viii) acquisitions may not produce revenue enhancements or cost savings at levels or within time frames
originally anticipated, or may result in unforeseen integration difficulties; and (ix) capital investments in the Company’s businesses may not produce expected growth in earnings
anticipated at the time of the expenditure. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update them in
light of new information or future events.