updated 1/21/2009 8:57:46 AM ET 2009-01-21T13:57:46

U.S. Bancorp on Wednesday reported a 72 percent drop in earnings in the final three months of last year — its eighth straight quarterly profit decline — as credit costs and securities losses climbed.

For the fourth quarter of 2008, the Minneapolis-based bank reported net income applicable to common shareholders of $260 million, or 15 cents per share, down from $927 million, or 53 cents per share, a year earlier.

Analysts polled by Thomson Reuters, on average, were expecting earnings of 22 cents per share.

Results suffered as the company set aside $1.27 billion during the quarter to cover bad loans. This is up from just $225 million in the fourth quarter of 2007, and $748 million in the third quarter of last year.

Total revenue inched up 1 percent to $3.62 billion, driven by strong growth in net interest income. But this was offset by lower fee-based revenue and securities losses.

Net interest income, or the difference between how much it costs a bank to borrow money and how much it receives from lending money to customers, rose 23 percent to $2.16 billion from $1.76 billion in the prior-year quarter.

Noninterest income, or income earned from fees and other charges, fell 19 percent to $1.46 billion.

For the full year, the bank earned $2.82 billion, or $1.61 per share, down 34 percent from $4.26 billion, or $2.43 per share, in 2007.

© 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.


Discussion comments


Most active discussions

  1. votes comments
  2. votes comments
  3. votes comments
  4. votes comments

Data: Latest rates in the US

Home equity rates View rates in your area
Home equity type Today +/- Chart
$30K HELOC FICO 3.79%
$30K home equity loan FICO 4.99%
$75K home equity loan FICO 4.69%
Credit card rates View more rates
Card type Today +/- Last Week
Low Interest Cards 13.83%
Cash Back Cards 17.80%
Rewards Cards 17.18%
Source: Bankrate.com