US Bank 2007 Annual Report Download - page 61

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banking, financial advisory, investment management, retail
brokerage services, insurance, custody and mutual fund
servicing through five businesses: Wealth Management,
Corporate Trust, FAF Advisors, Institutional Trust and
Custody and Fund Services. During 2007, Wealth
Management & Securities Services contributed $592 million
of the Company’s net income, a decrease of $5 million
(.8 percent) compared with 2006. The decrease was
primarily attributed to valuation losses related to securities
purchased from certain money market funds managed by
FAF Advisors. The decrease was partially offset by core
account fee growth and improved equity market conditions
relative to a year ago.
Total net revenue increased $4 million (.2 percent) in
2007, compared with 2006. Net interest income, on a
taxable-equivalent basis, decreased $6 million (1.2 percent)
from the prior year. The decrease in net interest income was
due to the unfavorable impacts of deposit pricing and
tightening credit spreads, partially offset by earnings from
deposit growth. The increase in total deposits was
attributable to growth in noninterest-bearing deposits,
interest checking and time deposits, principally due to
acquired businesses and growth related to broker-dealer and
institutional trust customers. Noninterest income increased
$10 million (.7 percent) in 2007, compared with 2006,
primarily driven by core account fee growth and favorable
equity market conditions. Strong organic growth of
8.1 percent was substantially offset by the $107 million of
valuation losses realized by this line of business in 2007.
Total noninterest expense increased $9 million
(.9 percent) in 2007, compared with 2006, primarily due to
the completion of certain acquisition integration activities.
U.S. BANCORP 59
2007 2006
Percent
Change 2007 2006
Percent
Change 2007 2006
Percent
Change 2007 2006
Percent
Change
Wealth Management &
Securities Services
Payment
Services
Treasury and
Corporate Support
Consolidated
Company
$ 501 $ 507 (1.2)% $ 738 $ 658 12.2% $ (210) $ (167) (25.7)% $ 6,764 $ 6,790 (.4)%
1,456 1,446 .7 2,936 2,579 13.8 44 228 (80.7) 7,157 6,832 4.8
– – – – – – 13 3 * 15 14 7.1
1,957 1,953 .2 3,674 3,237 13.5 (153) 64 * 13,936 13,636 2.2
932 926 .6 1,362 1,232 10.6 646 295 * 6,486 5,825 11.3
91 88 3.4 218 203 7.4 – – – 376 355 5.9
1,023 1,014 .9 1,580 1,435 10.1 646 295 * 6,862 6,180 11.0
934 939 (.5) 2,094 1,802 16.2 (799) (231) * 7,074 7,456 (5.1)
2 3 (33.3) 404 284 42.3 5 5 – 792 544 45.6
932 936 (.4) 1,690 1,518 11.3 (804) (236) * 6,282 6,912 (9.1)
340 339 .3 615 552 11.4 (622) (440) (41.4) 1,958 2,161 (9.4)
$ 592 $ 597 (.8) $ 1,075 $ 966 11.3 $ (182) $ 204 * $ 4,324 $ 4,751 (9.0)
$ 2,027 $ 1,796 12.9% $ 4,216 $ 3,800 10.9% $ 136 $ 133 2.3% $ 47,812 $ 45,440 5.2%
678 702 (3.4) – – – 62 65 (4.6) 28,592 28,760 (.6)
454 459 (1.1) – – – 4 4 – 22,085 21,053 4.9
2,356 2,413 (2.4) 10,616 8,779 20.9 39 44 (11.4) 48,859 45,348 7.7
5,515 5,370 2.7 14,832 12,579 17.9 241 246 (2.0) 147,348 140,601 4.8
1,554 1,400 11.0 2,494 2,426 2.8 8 3 * 7,600 7,289 4.3
414 472 (12.3) 1,093 1,125 (2.8) 12 3 * 3,193 3,103 2.9
8,057 7,806 3.2 20,389 17,456 16.8 52,541 50,577 3.9 223,621 213,512 4.7
4,317 3,990 8.2 413 341 21.1 91 72 26.4 27,364 28,755 (4.8)
3,106 2,426 28.0 12 4 * 3 2 50.0 26,117 23,552 10.9
5,638 5,618 .4 21 19 10.5 53 30 76.7 30,638 32,266 (5.0)
3,779 2,901 30.3 4 3 33.3 1,813 2,072 (12.5) 36,956 36,016 2.6
16,840 14,935 12.8 450 367 22.6 1,960 2,176 (9.9) 121,075 120,589 .4
2,467 2,369 4.1 4,874 4,677 4.2 1,455 1,523 (4.5) 20,997 20,710 1.4