US Bank 2003 Annual Report Download - page 59

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The provision for credit losses decreased $28.0 million information on factors impacting the credit quality of the
in 2003, compared with 2002. The improvement in the loan portfolios.
provision for credit losses in 2003 was primarily Private Client, Trust and Asset Management provides trust,
attributable to lower net charge-offs. As a percentage of private banking, financial advisory, investment management
average loans, net charge-offs declined to .75 percent in and mutual fund and alternative investment product services
2003, compared with .88 percent in 2002. The declines in through five businesses: Private Client Group, Corporate
net charge-offs included the commercial, commercial real Trust, Asset Management, Institutional Trust and Custody
estate and retail loan portfolios. The improvement in and Fund Services, LLC. Private Client, Trust and Asset
commercial and commercial real estate loan net charge-offs Management contributed $506.5 million of the Company’s
within Consumer Banking of $20.6 million was broad- operating earnings in 2003, and increase of 10.9 percent
based across most industry and geographical regions. Retail compared with 2002.
loan net charge-offs declined by $16.5 million primarily Total net revenue was $1,352.0 million in 2003, an
resulting from ongoing collection efforts and risk increase of 10.4 percent, compared with 2002. Net interest
management. Nonperforming assets within Consumer income, on a taxable-equivalent basis, increased
Banking were $367.1 million at December 31, 2003, $60.6 million (18.8 percent) in 2003, compared with 2002.
compared with $345.4 million at December 31, 2002. Refer The increase in net interest income in 2003 was due to
to the ‘‘Corporate Risk Profile’’ section for further growth in total deposits of 34.5 percent attributable to
Private Client, Trust Payment Treasury and Consolidated
and Asset Management Services Corporate Support Company
Percent Percent Percent Percent
2003 2002 Change 2003 2002 Change 2003 2002 Change 2003 2002 Change
$ 383.6 $ 323.0 18.8% $ 624.4 $ 675.6 (7.6)% $ 696.9 $ 594.1 17.3% $ 7,217.5 $ 6,847.2 5.4%
968.4 901.5 7.4 1,692.3 1,676.8 .9 194.4 183.0 6.2 5,068.2 4,910.8 3.2
— — — — — — 51.4 192.1 (73.2) 244.8 299.9 (18.4)
1,352.0 1,224.5 10.4 2,316.7 2,352.4 (1.5) 942.7 969.2 (2.7) 12,530.5 12,057.9 3.9
483.3 464.5 4.0 593.9 627.3 (5.3) 1,694.6 1,675.9 1.1 4,868.3 4,866.3 —
66.2 31.1 * 158.1 161.1 (1.9) 5.8 1.2 * 682.4 553.0 23.4
549.5 495.6 10.9 752.0 788.4 (4.6) 1,700.4 1,677.1 1.4 5,550.7 5,419.3 2.4
802.5 728.9 10.1 1,564.7 1,564.0 — (757.7) (707.9) (7.0) 6,979.8 6,638.6 5.1
6.2 11.0 (43.6) 412.7 456.4 (9.6) (1.8) (26.7) 93.3 1,254.0 1,349.0 (7.0)
796.3 717.9 10.9 1,152.0 1,107.6 4.0 (755.9) (681.2) (11.0) 5,725.8 5,289.6 8.2
289.8 261.2 10.9 419.2 403.0 4.0 (373.4) (320.5) (16.5) 1,985.3 1,852.3 7.2
$ 506.5 $ 456.7 10.9 $ 732.8 $ 704.6 4.0 $ (382.5) $ (360.7) (6.0) 3,740.5 3,437.3 8.8
(30.4) (209.3)
22.5 (22.7)
— (37.2)
$ 3,732.6 $ 3,168.1
$ 1,784 $ 1,819 (1.9)% $ 2,887 $ 2,803 3.0% $ 218 $ 385 (43.4)% $ 41,326 $ 43,817 (5.7)%
594 591 .5 — — — 198 214 (7.5) 27,142 25,723 5.5
299 231 29.4 — — — 13 8 62.5 11,696 8,412 39.0
2,159 2,056 5.0 7,103 7,304 (2.8) 47 51 (7.8) 38,198 36,501 4.6
4,836 4,697 3.0 9,990 10,107 (1.2) 476 658 (27.7) 118,362 114,453 3.4
740 290 * 1,814 1,814 — 305 306 (.3) 6,328 5,528 14.5
399 227 75.8 675 769 (12.2) 20 11 81.8 2,129 2,080 2.4
6,624 5,771 14.8 13,564 13,350 1.6 47,836 38,852 23.1 187,630 171,948 9.1
3,031 2,333 29.9 278 258 7.8 (80) 192 * 31,715 28,715 10.4
6,019 4,301 39.9 10 7 42.9 1 129 (99.2) 57,026 45,796 24.5
474 448 5.8 — — — 4,850 4,941 (1.8) 27,812 30,613 (9.1)
9,524 7,082 34.5 288 265 8.7 4,771 5,262 (9.3) 116,553 105,124 10.9
2,169 1,405 54.4 3,010 3,059 (1.6) 3,134 2,632 19.1 19,393 17,273 12.3
U.S. Bancorp 57