US Bank 2008 Annual Report Download - page 60

Management & Securities Services and Payment Services
lines of business is based on net charge-offs, while Treasury
and Corporate Support reflects the residual component of
the Company’s total consolidated provision for credit losses
determined in accordance with accounting principles
generally accepted in the United States. Income taxes are
assessed to each line of business at a standard tax rate with
the residual tax expense or benefit to arrive at the
consolidated effective tax rate included in Treasury and
Corporate Support.
Designations, assignments and allocations change from
time to time as management systems are enhanced, methods
of evaluating performance or product lines change or
business segments are realigned to better respond to the
Company’s diverse customer base. During 2008, certain
organization and methodology changes were made and,
accordingly, 2007 results were restated and presented on a
comparable basis. Due to organizational and methodology
changes, the Company’s basis of financial presentation
differed in 2006. The presentation of comparative business
line results for 2006 is not practical and has not been
provided.
Wholesale Banking Wholesale Banking offers lending,
equipment finance and small-ticket leasing, depository,
treasury management, capital markets, foreign exchange,
international trade services and other financial services to
middle market, large corporate, commercial real estate and
public sector clients. Wholesale Banking contributed
58 U.S. BANCORP
Table 23 LINE OF BUSINESS FINANCIAL PERFORMANCE
Year Ended December 31 (Dollars in Millions) 2008 2007
Percent
Change 2008 2007
Percent
Change
Wholesale
Banking
Consumer
Banking
Condensed Income Statement
Net interest income (taxable-equivalent basis) . . . . . . . . . . . . . . . . . . . . $ 2,114 $ 1,846 14.5% $ 3,918 $ 3,912 .2%
Noninterest income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 885 882 .3 2,007 2,196 (8.6)
Securities gains (losses), net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (22) 1 * – 2 *
Total net revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,977 2,729 9.1 5,925 6,110 (3.0)
Noninterest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,038 942 10.2 3,181 2,836 12.2
Other intangibles . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21 15 40.0 63 68 (7.4)
Total noninterest expense . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,059 957 10.7 3,244 2,904 11.7
Income before provision and income taxes . . . . . . . . . . . . . . . . . . 1,918 1,772 8.2 2,681 3,206 (16.4)
Provision for credit losses. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 317 51 * 790 327 *
Income before income taxes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,601 1,721 (7.0) 1,891 2,879 (34.3)
Income taxes and taxable-equivalent adjustment . . . . . . . . . . . . . . . . . . 584 627 (6.9) 688 1,049 (34.4)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1,017 $ 1,094 (7.0) $ 1,203 $ 1,830 (34.3)
Average Balance Sheet
Commercial . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $40,257 $35,018 15.0% $ 6,689 $ 6,520 2.6%
Commercial real estate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 19,231 16,769 14.7 11,253 11,137 1.0
Residential mortgages . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 89 74 20.3 22,718 21,585 5.2
Retail . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 76 67 13.4 40,405 36,073 12.0
Total loans, excluding covered assets . . . . . . . . . . . . . . . . . . . . . . . 59,653 51,928 14.9 81,065 75,315 7.6
Covered assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . – – – 1,308 – *
Total loans . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 59,653 51,928 14.9 82,373 75,315 9.4
Goodwill . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,425 1,329 7.2 2,485 2,416 2.9
Other intangible assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 66 38 73.7 1,718 1,688 1.8
Assets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 65,049 57,074 14.0 93,400 86,565 7.9
Noninterest-bearing deposits. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,138 10,561 5.5 12,025 12,070 (.4)
Interest checking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8,265 5,318 55.4 18,157 17,826 1.9
Savings products . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,614 5,546 19.3 20,352 19,454 4.6
Time deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 15,515 11,352 36.7 18,886 20,100 (6.0)
Total deposits . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 41,532 32,777 26.7 69,420 69,450 –
Shareholders’ equity . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,616 5,790 14.3 7,563 6,714 12.6
* Not meaningful