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Analyzing U.S. Bank’s strong 4Q14 results

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Dec. 4 2020, Updated 10:53 a.m. ET

U.S. Bank reported good top line growth 

U.S. Bank (USB) reported strong 4Q14 results on Wednesday, January 21. The bank reported revenue of $5,169 million for 4Q14. This was 5.7% growth—compared to 4Q13. The growth in net interest income over 4Q14 was 2.4%—compared to 4Q13. Non-interest income grew by 9.9%—compared to the same period last year. Non-interest expenses saw an increase of 4.5% in 4Q14—compared to 4Q13.

U.S. Bank increased the provisions for credit losses by $11 million.

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U.S. Bank reported healthy bottom line growth

For the bottom line, U.S. Bank reported net income of $1.49 billion for 4Q14. This was 2.2% growth—compared to 4Q13. The net income amounted to diluted earnings per share, or EPS, of $0.79. This was 3.9% growth—compared to 4Q13. The higher EPS growth was due to a lower number of shares. U.S. Bank repurchased 11 million shares of common stock during the quarter.

U.S. bank is well capitalized 

U.S. Bank’s Common Equity Tier 1 capital ratio was 9.7% at the end of 4Q14. The Tier 1 capital ratio was at 11.3% at the end of 4Q14. The bank returned nearly 66% of its earnings to shareholders in 4Q14—in the form of stock repurchases and dividends.

This is a concise summary of the results. What were the finer points of the results? In the next parts of this series, we’ll take a detailed look at U.S. Bank’s 4Q14 results.

How does U.S. Bank compare to the big four banks—JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC), and Citibank (C)? This is important because U.S. Bank is part of some popular ETFs—like the Financial Select Sector SPDR (XLF).

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