US Bank 2008 Annual Report Download - page 61

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$1,017 million of the Company’s net income in 2008, or a
decrease of $77 million (7.0 percent), compared with 2007.
The decrease was primarily driven by an increase in the
provision for credit losses and higher noninterest expense,
partially offset by higher total net revenue.
Total net revenue increased $248 million (9.1 percent)
in 2008, compared with 2007. Net interest income, on a
taxable-equivalent basis, increased $268 million
(14.5 percent), driven by growth in earning assets and
deposits, partially offset by declining margins in the loan
portfolio and a decrease in the margin benefit of deposits.
Noninterest income decreased $20 million (2.3 percent)
primarily due to market-related valuation losses and lower
earnings from equity investments, including an investment in
a commercial real estate business, partially offset by higher
commercial lending-related and capital markets fees and
increases in treasury management and foreign exchange
revenue.
Total noninterest expense increased $102 million
(10.7 percent) in 2008, compared with 2007. The increase
was primarily due to higher compensation and employee
benefits expenses attributable to the expansion of the
business line’s national corporate banking presence,
investments to enhance customer relationship management,
and the Mellon 1st Business Bank acquisition. The provision
for credit losses increased $266 million in 2008, compared
U.S. BANCORP 59
2008 2007
Percent
Change 2008 2007
Percent
Change 2008 2007
Percent
Change 2008 2007
Percent
Change
Wealth Management &
Securities Services
Payment
Services
Treasury and
Corporate Support
Consolidated
Company
$ 497 $ 485 2.5% $ 1,034 $ 764 35.3% $ 303 $ (243) *% $ 7,866 $ 6,764 16.3%
1,398 1,369 2.1 2,931 2,774 5.7 568 60 * 7,789 7,281 7.0
— – – – – – (956) 12 * (978) 15 *
1,895 1,854 2.2 3,965 3,538 12.1 (85) (171) 50.3 14,677 14,060 4.4
955 914 4.5 1,399 1,255 11.5 486 663 (26.7) 7,059 6,610 6.8
77 92 (16.3) 194 201 (3.5) – – – 355 376 (5.6)
1,032 1,006 2.6 1,593 1,456 9.4 486 663 (26.7) 7,414 6,986 6.1
863 848 1.8 2,372 2,082 13.9 (571) (834) 31.5 7,263 7,074 2.7
9 4 * 696 404 72.3 1,284 6 * 3,096 792 *
854 844 1.2 1,676 1,678 (.1) (1,855) (840) * 4,167 6,282 (33.7)
313 307 2.0 608 610 (.3) (972) (635) (53.1) 1,221 1,958 (37.6)
$ 541 $ 537 .7 $ 1,068 $ 1,068 – $ (883) $ (205) * $ 2,946 $ 4,324 (31.9)
$ 1,810 $ 1,959 (7.6)% $ 4,617 $ 4,179 10.5% $ 934 $ 136 *% $ 54,307 $ 47,812 13.6%
589 637 (7.5) – – – 37 49 (24.5) 31,110 28,592 8.8
447 422 5.9 – – – 3 4 (25.0) 23,257 22,085 5.3
2,082 2,064 .9 12,972 10,616 22.2 35 39 (10.3) 55,570 48,859 13.7
4,928 5,082 (3.0) 17,589 14,795 18.9 1,009 228 * 164,244 147,348 11.5
– – – – – – – – – 1,308 – *
4,928 5,082 (3.0) 17,589 14,795 18.9 1,009 228 * 165,552 147,348 12.4
1,563 1,554 .6 2,351 2,293 2.5 – 8 * 7,824 7,600 2.9
327 414 (21.0) 997 1,041 (4.2) 1 12 (91.7) 3,109 3,193 (2.6)
7,390 7,619 (3.0) 22,452 19,833 13.2 56,109 52,530 6.8 244,400 223,621 9.3
4,770 4,264 11.9 498 378 31.7 308 91 * 28,739 27,364 5.0
4,673 2,958 58.0 39 12 * 3 3 – 31,137 26,117 19.2
5,178 5,564 (6.9) 19 21 (9.5) 66 53 24.5 32,229 30,638 5.2
4,302 3,686 16.7 1 4 (75.0) 5,375 1,814 * 44,079 36,956 19.3
18,923 16,472 14.9 557 415 34.2 5,752 1,961 * 136,184 121,075 12.5
2,386 2,445 (2.4) 4,923 4,592 7.2 1,082 1,456 (25.7) 22,570 20,997 7.5