US Bank 2004 Annual Report Download - page 58
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Please find page 58 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.Consumer Banking delivers products and services to the offset somewhat by a lower contribution from the mortgage
broad consumer market and small businesses through banking business, compared with the same periods of 2003.
banking offices, telemarketing, on-line services, direct mail Total net revenue increased $24.4 million (.5 percent)
and automated teller machines (‘‘ATMs’’). It encompasses in 2004, compared with 2003, as growth in net interest
community banking, metropolitan banking, small business income and noninterest income was partially offset by a
banking, including lending guaranteed by the Small Business reduction in securities gains (losses) associated with the
Administration, small-ticket leasing, consumer lending, mortgage banking business. Net interest income, on a
mortgage banking, workplace banking, student banking, taxable-equivalent basis, increased $57.8 million
24-hour banking and investment product and insurance (1.6 percent). Fee-based revenue increased $243.8 million
sales. Consumer Banking contributed $1,465.0 million of (15.7 percent) and securities gains (losses) decreased
the Company’s operating earnings for 2004 and $277.2 million. The year-over-year increase in net interest
$1,333.7 million for 2003, a 9.8 percent increase over income was due to growth in average loan balances,
2003. The increase in operating earnings in 2004 was improved spreads on commercial and commercial real estate
driven by strong fee-based revenues, lower noninterest loans, growth in noninterest-bearing and savings product
expense and reductions in the provision for credit losses, deposit balances and the funding benefit of total deposits
compared with 2003. Within Consumer Banking, the retail due to rising interest rates. Partially offsetting these
banking business grew operating earnings by 23.1 percent, increases was the decline in average mortgage loans held for
sale, reduced spreads on retail loans due to the competitive
Line of Business Financial Performance
Wholesale Consumer
Banking Banking
Percent Percent
Year Ended December 31 (Dollars in Millions) 2004 2003 Change 2004 2003 Change
Condensed Income Statement
Net interest income (taxable-equivalent basis)**************************************** $1,611.6 $1,667.5 (3.4)% $3,636.5 $3,578.7 1.6%
Noninterest income ************************************************************** 750.1 760.9 (1.4) 1,794.2 1,550.4 15.7
Securities gains (losses), net ****************************************************** 1.5 — * (83.8) 193.4 *
Total net revenue ************************************************************* 2,363.2 2,428.4 (2.7) 5,346.9 5,322.5 .5
Noninterest expense ************************************************************* 625.2 666.6 (6.2) 2,364.4 2,361.9 .1
Other intangibles **************************************************************** 18.3 19.5 (6.2) 304.4 432.7 (29.7)
Total noninterest expense****************************************************** 643.5 686.1 (6.2) 2,668.8 2,794.6 (4.5)
Operating earnings before provision and income taxes ************************* 1,719.7 1,742.3 (1.3) 2,678.1 2,527.9 5.9
Provision for credit losses ********************************************************* 22.6 405.5 (94.4) 375.1 431.1 (13.0)
Operating earnings before income taxes ******************************************** 1,697.1 1,336.8 27.0 2,303.0 2,096.8 9.8
Income taxes and taxable-equivalent adjustment ************************************* 617.5 486.5 26.9 838.0 763.1 9.8
Operating earnings*************************************************************** $1,079.6 $ 850.3 27.0 $1,465.0 $1,333.7 9.8
Merger and restructuring-related items (after-tax) *************************************
Discontinued operations (after-tax) *************************************************
Net income *********************************************************************
Average Balance Sheet Data
Commercial ********************************************************************* $ 26,674 $ 28,195 (5.4)% $ 7,774 $ 8,220 (5.4)%
Commercial real estate *********************************************************** 15,918 16,393 (2.9) 10,603 9,974 6.3
Residential mortgages ************************************************************ 72 116 (37.9) 13,918 11,315 23.0
Retail ************************************************************************** 52 52 — 31,327 29,005 8.0
Total loans******************************************************************* 42,716 44,756 (4.6) 63,622 58,514 8.7
Goodwill************************************************************************ 1,225 1,227 (.2) 2,242 2,242 —
Other intangible assets *********************************************************** 88 107 (17.8) 1,073 936 14.6
Assets ************************************************************************* 49,045 51,696 (5.1) 71,581 68,373 4.7
Noninterest-bearing deposits ****************************************************** 12,722 14,775 (13.9) 13,977 13,756 1.6
Savings products **************************************************************** 9,830 11,057 (11.1) 41,929 40,107 4.5
Time deposits ******************************************************************* 7,518 3,976 89.1 16,010 18,512 (13.5)
Total deposits **************************************************************** 30,070 29,808 .9 71,916 72,375 (.6)
Shareholders’ equity ************************************************************* 5,081 5,046 .7 6,225 5,878 5.9
* Not meaningful
56 U.S. BANCORP
Table 22