US Bank 2004 Annual Report Download - page 55
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Please find page 55 of the 2004 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.losses on the sales of securities of $20.4 million. Credit and revenue. The $1.2 million (3.3 percent) increase in
debit card revenue and corporate payment products revenue investment product fees and commissions reflected higher
were higher in the fourth quarter of 2004 than the fourth sales activity in the Consumer Banking business line. Other
quarter of 2003 by $31.0 million (20.2 percent) and income was higher year-over-year by $51.1 million
$12.1 million (13.6 percent), respectively. The growth in (55.4 percent), primarily due to a favorable change in
credit and debit card revenue reflected increases in end-of-term lease residual gains (losses) and revenue from
transaction volumes and other rate adjustments, partially equity investments relative to the same quarter of 2003.
offset by higher customer loyalty reward expenses. The Partially offsetting these positive variances were trust and
corporate payment products revenue growth reflected investment management fees, which declined by
growth in sales, card usage and rate changes. ATM $5.9 million (2.4 percent) in the fourth quarter of 2004
processing services revenue was higher by $2.7 million from the same period of 2003, and treasury management
(6.7 percent), compared with 2003, due to increases in fees, which declined by $6.5 million (5.6 percent) year-over-
transaction volumes and sales. Merchant processing services year. Trust and investment management fees declined as
revenue was higher in the fourth quarter of 2004 than the gains from equity market valuations were more than offset
same quarter of 2003 by $34.9 million (23.9 percent), by lower fees, partially due to a change in the mix of fund
reflecting an increase in same store sales volume, new balances and customers’ migration from paying for services
business and the recent expansion of the Company’s with fees to paying with compensating balances. The
merchant acquiring business in Europe. The recent decrease in treasury management fees was primarily due to
European acquisitions accounted for approximately higher earnings credit on customers’ compensating balances
$25.5 million of the total increase. Deposit service charges and the impact of an industry-wide shift of payments from
were higher year-over-year by $25.1 million (13.5 percent) paper-based to electronic and card-based transactions.
due to account growth, revenue enhancement initiatives and Total noninterest expense was $1,578.0 million in the
transaction-related fees. Commercial products revenue fourth quarter of 2004, compared with $1,342.4 million in
increased by $9.2 million (9.3 percent) over the fourth the fourth quarter of 2003. The increase in noninterest
quarter of 2003, primarily due to syndication fees and expense of $235.6 million (17.6 percent) was primarily
commercial leasing revenue. The favorable variance year- driven by a $112.5 million charge related to the prepayment
over-year in mortgage banking revenue of $4.1 million of the Company’s long-term debt and a $31.9 million
(4.5 percent) was primarily due to higher loan servicing unfavorable change in the valuation of mortgage servicing
Fourth Quarter Summary
Three Months Ended
December 31,
(In Millions, Except Per Share Data) 2004 2003
Condensed Income Statement
Net interest income (taxable-equivalent basis) (a)************************************************************** $1,799.8 $1,816.7
Noninterest income *************************************************************************************** 1,455.7 1,296.7
Securities gains (losses), net ******************************************************************************* (20.5) (.1)
Total net revenue************************************************************************************** 3,235.0 3,113.3
Noninterest expense ************************************************************************************** 1,578.0 1,342.4
Provision for credit losses ********************************************************************************* 65.0 286.0
Income from continuing operations before taxes *********************************************************** 1,592.0 1,484.9
Taxable-equivalent adjustment****************************************************************************** 7.3 7.2
Applicable income taxes*********************************************************************************** 528.7 507.4
Income from continuing operations ********************************************************************** 1,056.0 970.3
Discontinued operations (after-tax) ************************************************************************** — 6.7
Net income ****************************************************************************************** $1,056.0 $ 977.0
Per Common Share
Earnings per share *************************************************************************************** $ .57 $ .51
Diluted earnings per share ********************************************************************************* .56 .50
Dividends declared per share ****************************************************************************** .30 .24
Average common shares outstanding *********************************************************************** 1,865.0 1,927.3
Average diluted common shares outstanding***************************************************************** 1,893.8 1,950.8
Financial Ratios
Return on average assets ********************************************************************************* 2.16% 2.05%
Return on average equity********************************************************************************** 21.2 19.4
Net interest margin (taxable-equivalent basis)***************************************************************** 4.20 4.42
Efficiency ratio (b) **************************************************************************************** 48.5 43.1
(a) Interest and rates are presented on a fully taxable-equivalent basis utilizing a tax rate of 35 percent.
(b) Computed as noninterest expense divided by the sum of net interest income on a taxable-equivalent basis and noninterest income excluding securities gains (losses), net.
U.S. BANCORP 53
Table 21