US Bank 2014 Annual Report Download - page 67

TABLE 22 REGULATORY CAPITAL RATIOS
U.S. Bancorp
U.S. Bank National
Association
At December 31 (Dollars in Millions) 2014 2013 2014 2013
Basel III transitional standardized approach/Basel I:
Common equity tier 1 capital(a) ............................................... $ 30,856 $ 32,381
Tier 1 capital ................................................................. 36,020 $ 33,386 32,789 $ 30,167
Total risk-based capital ...................................................... 43,208 39,340 40,008 36,392
Risk-weighted assets ........................................................ 317,398 297,919 313,261 293,335
Common equity tier 1 capital as a percent of risk-weighted assets(a) ......... 9.7% 10.3%
Tier 1 capital as a percent of risk-weighted assets ........................... 11.3 11.2% 10.5 10.3%
Total risk-based capital as a percent of risk-weighted assets ................ 13.6 13.2 12.8 12.4
Tier 1 capital as a percent of adjusted quarterly average assets (leverage
ratio) ...................................................................... 9.3 9.6 8.6 8.8
Basel III transitional advanced approaches:
Common equity tier 1 capital(a) ............................................... $ 30,856 $ 32,381
Tier 1 capital ................................................................. 36,020 32,789
Total risk-based capital ...................................................... 40,475 37,299
Risk-weighted assets ........................................................ 248,596 245,007
Common equity tier 1 capital as a percent of risk-weighted assets(a) ......... 12.4% 13.2%
Tier 1 capital as a percent of risk-weighted assets ........................... 14.5 13.4
Total risk-based capital as a percent of risk-weighted assets ................ 16.3 15.2
BANK REGULATORY CAPITAL REQUIREMENTS
Minimum
Well-
Capitalized
2014
Common equity tier 1 capital as a percent of risk-weighted assets ................................. 4.0% *
Tier 1 capital as a percent of risk-weighted assets .................................................. 5.5 6.0%
Total risk-based capital as a percent of risk-weighted assets ....................................... 8.0 10.0
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) .................... 4.0 5.0
2013
Tier 1 capital as a percent of risk-weighted assets .................................................. 4.0% 6.0%
Total risk-based capital as a percent of risk-weighted assets ....................................... 8.0 10.0
Tier 1 capital as a percent of adjusted quarterly average assets (leverage ratio) .................... 4.0 5.0
* Not applicable.
Note: December 31, 2014 amounts calculated under the Basel III transitional standardized and advanced approaches, with the Company being evaluated for capital adequacy against the approach
that is most restrictive. December 31, 2013 amounts calculated under Basel I.
(a) Beginning January 1, 2014, the regulatory capital requirements effective for the Company include a common equity tier 1 capital as a percent of risk-weighted assets ratio.
ratio using the Basel III standardized approach as if fully
implemented was 9.0 percent at December 31, 2014,
compared with 8.8 percent at December 31, 2013. The
Company’s common equity tier 1 to risk-weighted assets
ratio using the Basel III advanced approaches as if fully
implemented was 11.8 percent at December 31, 2014. Refer
to “Non-GAAP Financial Measures” for further information
regarding the calculation of these ratios.
FOURTH QUARTER SUMMARY
The Company reported net income attributable to
U.S. Bancorp of $1.5 billion for the fourth quarter of 2014, or
$.79 per diluted common share, compared with $1.5 billion,
or $.76 per diluted common share, for the fourth quarter of
2013. Return on average assets and return on average
common equity were 1.50 percent and 14.4 percent,
respectively, for the fourth quarter of 2014, compared with
1.62 percent and 15.4 percent, respectively, for the fourth
quarter of 2013.
Total net revenue, on a taxable-equivalent basis for the
fourth quarter of 2014, was $280 million (5.7 percent) higher
than the fourth quarter of 2013, reflecting a 2.4 percent
increase in net interest income and a 9.9 percent increase in
noninterest income. The increase in net interest income from
the fourth quarter of 2013 was the result of an increase in
average earning assets and continued growth in lower cost
core deposit funding, partially offset by a decrease in the net
interest margin. Noninterest income increased from a year
ago, primarily due to higher revenue in most fee businesses
and higher other income, including the impact of the fourth
quarter 2014 Nuveen gain.
U.S. BANCORP The power of potential
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