U.S. Bancorp

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  • Consumer

    Chilton Investment Company buys stake in TransDigm in 4Q13

    Chilton started a new position in aerospace engineering company TransDigm Group Inc. (TDG) that accounts for 0.76% of the fund’s fourth quarter portfolio.

    By Samantha Nielson
  • Financials

    Must-know: Determining a bank’s value

    The first challenge is that banks are highly regulated and any change in regulations has a huge impact on the valuation of a bank—the second challenge is that it’s difficult to determine cash flow for a bank because both debt and reinvestment are difficult to calculate.

    By Saul Perez
  • uploads///mobile banking
    Company & Industry Overviews

    US Banking Sector: Key Trends and Outlook

    Changes in technology have reshaped the banking sector. Banks are increasingly collaborating with fintech firms to improve their customer service.

    By Rekha Khandelwal, CFA
  • Financials

    Why Wells Fargo has the highest net interest margin

    Maintaining a high net interest margin has always been part of Wells Fargo’s (WFC) strategy. Wells Fargo has consistently been better than the industry’s average net interest margin.

    By Saul Perez
  • Financials

    An investor’s guide to financial intermediation and key risks

    Financial intermediation can result in concentration of risks that increase the fragility of the financial system. These risks are referred to as systemic risks.

    By Phalguni Soni
  • uploads///Spread Between  and  Year Treasury Notes
    Company & Industry Overviews

    The State of Treasury Yield Spreads in 2015

    Yield spreads between different maturity Treasury securities, when compared to historical trends, can indicate how the market views economic conditions.

    By David Ashworth
  • uploads///abeedaaffdbcf
    Macroeconomic Analysis

    Financials Steal the Spotlight on July 15: Stellar Q2 Earnings

    Financial-sector companies such as Bank of America (BAC), U.S. Bancorp (USB), and BlackRock (BLK) shared the spotlight on July 15.

    By Surbhi Jain
  • uploads///Portfolio Composition of Some US Equity Mutual Funds
    Macroeconomic Analysis

    The Big Picture in US Equity Mutual Funds: November Rundown as of October

    Investors need to keep a close watch on signs that indicate a “liftoff” in December and should be ready to rebalance their equity mutual funds accordingly.

    By David Ashworth
  • uploads///Historical Spread Between  and  Year Notes
    Company & Industry Overviews

    Why Treasury Yield Spreads Have Fallen to Over 8-Year Lows

    Yield spreads between different maturity Treasury securities, when compared to historical trends, can indicate how the Market views economic conditions.

    By David Ashworth
  • uploads///cbbffaddbbeb
    Company & Industry Overviews

    Which Sectors to Avoid if Inflation Rises

    Telecom services and utilities, the traditional dividend stars, have provided a fillip to US equities in 2016.

    By David Ashworth
  • uploads///dollar _
    Company & Industry Overviews

    Markets Give a Thumbs Up to ‘True Merger of Equals’

    Today, Sun Trust Banks and BB&T announced a merger that would create the sixth largest bank in the United States.

    By Mohit Oberoi, CFA
  • uploads///US Bank Deposit growth
    Financials

    Low-cost deposit growth is a key strength for U.S. Bank

    U.S. Bank does well in increasing its low-cost deposit base. In 4Q14, money market deposits grew the fastest at 19.7%—compared to 4Q13.

    By Saul Perez
  • uploads///ABT
    Consumer

    Chilton opens a new position in Abbott Laboratories in 4Q13

    Abbott Laboratories (ABT) is a brand new position that accounts for 1.19% of Chilton’s fourth quarter 2013 portfolio.

    By Samantha Nielson
  • uploads///US Bank NPA
    Financials

    U.S. Bank’s non-performing assets declined in 4Q14

    U.S. Bank’s (USB) non-performing assets were $1,808 million at the end of 4Q14. The ratio declined by 11.24%—compared to 4Q13.

    By Saul Perez
  • uploads///Income Break up
    Financials

    How does Bank of America make money?

    Net interest income contributes about half of Bank of America’s total income. Investment and brokerage services contribute the most to noninterest income.

    By Rekha Khandelwal, CFA
  • uploads///Commercial Loan Portfolio
    Financials

    Why Bank of America’s commercial loan portfolio is diversified

    In addition to assessing the credit profile of the borrower, Bank of America ensures that loans aren’t too concentrated by industry, geography, or customer.

    By Rekha Khandelwal, CFA
  • uploads///USB Geographical
    Financials

    A brief overview of U.S. Bank

    We’ll provide an overview of U.S. Bank. It’s the fifth largest retail bank in the US—by deposits and assets. At the end of September 2014, it held $391 billion in assets.

    By Saul Perez
  • uploads///US Bank Loan book growth
    Financials

    Why U.S. Bank’s loan growth showed interesting trends

    You need to understand loan categories better in order to see some very interesting trends in U.S. Bank’s loan growth. Its loans are divided into five main categories.

    By Saul Perez
  • uploads///US Bank Efficiency Ratio
    Financials

    Efficiency ratio improved for U.S. Bank in 4Q14

    U.S. Bank led the industry in terms of the bank efficiency ratio. At the end of 4Q14, the sector efficiency ratio was 68.66%.

    By Saul Perez
  • Financials

    Must-know: Traditional banks face challenges

    When a borrower isn’t able to pay back the loan, the loan is considered a non-performing asset (or NPA)—since the money for lending came from a depositor, the bank needs a large enough pool of capital to withstand such a shock.

    By Saul Perez
  • uploads///buffett and berkshire
    Financials

    Are Banks a Good Bet for Buffett and Berkshire?

    Banks comprise around 30% of Warren Buffett’s portfolio by market value. Out of Berkshire Hathaway’s portfolio of 46 stocks, five are commercial banks.

    By Rekha Khandelwal, CFA
  • uploads///USB
    Consumer

    Chilton Investment Company buys a new stake in US Bancorp

    Chilton initiated a new position in the multi-state financial holding company U.S. Bancorp (USB) that accounts for 0.92% of the fund’s fourth quarter portfolio.

    By Samantha Nielson
  • uploads///ryan born xiFfaZAbs unsplash
    Company & Industry Overviews

    American Express Stock Dips Despite Q3 Revenue Beat

    American Express Company (AXP), the New York-based financial services company, released its third-quarter earnings on Friday.

    By Shankar Iyer
  • uploads///AdobeStock__Editorial_Use_Only
    Consumer

    Soros Exits, Buffet Increases: Who Is Right on Apple?

    In Q4 2018, legendary investor George Soros sold all his holding in Apple (AAPL). In Q3 2018, Apple represented around 0.2% of his total portfolio.

    By Rabindra Samanta
  • uploads///Berkshire Hathaway F Q
    Consumer

    Berkshire Hathaway 13F: Warren Buffett Played It Safe

    There weren’t any real surprises in Berkshire Hathaway’s 13F for the second quarter. In some ways, the 13F replicated the first quarter.

    By Mohit Oberoi, CFA
  • uploads///Q banks earnings
    Company & Industry Overviews

    How Warren Buffett’s Banking Investments Look after Q2

    Warren Buffet loves banking stocks. Out of his current portfolio of 47 stocks, five are commercial banks, including two regional banks.

    By Rekha Khandelwal, CFA
  • uploads///part  financials
    Financials

    Berkshire Hathaway’s Banking Holdings in Q1

    Among Berkshire Hathaway’s financial holdings, JPMorgan Chase was the worst performer, while Goldman Sachs was the top performer.

    By Mohit Oberoi, CFA
  • uploads///
    Financials

    How Warren Buffett Views Apple’s Big Bets on Payment Industry

    Earlier this week, Apple (AAPL) announced new services including video streaming, a gaming subscription, and a credit card in partnership with Goldman Sachs (GS).

    By Jitendra Parashar
  • uploads///money _
    Energy & Utilities

    How Warren Buffett’s Investment Philosophy Has Evolved

    Berkshire Hathaway trimmed stakes in Apple, Wells Fargo, Southwest Airlines, United Continental, Phillips 66, and Charter Communications in the fourth quarter.

    By Mohit Oberoi, CFA
  • uploads///part  bitcoin
    Financials

    Could Warren Buffett’s Views on Bitcoin Change?

    Berkshire Hathaway (BRK-B) chair Warren Buffett has never been a fan of cryptocurrencies like bitcoin.

    By Mohit Oberoi, CFA
  • uploads///part  faang
    Consumer

    Did Buffett Miss the Bus on Apple?

    Berkshire Hathaway (BRK-B) is Apple’s second-largest shareholder.

    By Mohit Oberoi, CFA
  • uploads///
    Consumer

    Buffett to Investors: ‘Focus on the Forest, Forget the Trees’

    One of the world’s most successful investors of all times, Warren Buffett believes in investing for the long term.

    By Jitendra Parashar
  • uploads///money case _
    Consumer

    Warren Buffett’s Berkshire Hathaway Lost $25.4 Billion in Q4 2018

    On Saturday, February 23, Warren Buffett’s Berkshire Hathaway (BRK-B) released its fourth-quarter earnings report.

    By Jitendra Parashar
  • uploads///elephant _
    Consumer

    Warren Buffett and the Problem with Elephants

    In the annual shareholder letter, Buffett lamented the lack of big acquisition opportunities, which he called “elephants.”

    By Mohit Oberoi, CFA
  • uploads///part
    Company & Industry Overviews

    Buffett’s Love for Banking Stocks Continued in Q4

    Berkshire Hathaway is the largest shareholder in Wells Fargo (WFC), Bank of America (BAC), U.S. Bancorp (USB), and American Express (AXP).

    By Mohit Oberoi, CFA
  • uploads///part  aaple
    Company & Industry Overviews

    Key Changes in Berkshire Hathaway’s Holdings in Q3

    Looking at Berkshire Hathaway’s third-quarter 13F, the company added more Apple shares and added a new position in JPMorgan Chase.

    By Mohit Oberoi, CFA
  • uploads///
    Company & Industry Overviews

    Buffett Banking Too Much on the Banking Sector with J.P. Morgan?

    As we discussed in the last three parts of this series, renowned billionaire investor Warren Buffett’s Berkshire Hathaway (BRK.A)(BRK.B) has increased its bets on the banking sector.

    By Jitendra Parashar
  • uploads///
    Company & Industry Overviews

    Buffett Raised Bets on U.S. Bancorp and Goldman Sachs in Q3 2018

    So far in this series, we’ve looked at Warrant Buffet’s investment firm, Berkshire Hathaway’s (BRK.A)(BRK.B), top five investments in the third quarter.

    By Jitendra Parashar
  • uploads///rev eps usb
    Financials

    What Are USB’s Key Growth Drivers?

    U.S. Bancorp’s (USB) revenue net of interest expense grew 5% and 4% in 2016 and 2017, respectively.

    By Amanda Lawrence
  • uploads///Treasury strategy
    Company & Industry Overviews

    Are You a Treasury Bond Mutual Fund Investor by Choice or Chance?

    Much of what you can do with your Treasury bond mutual fund for the remainder of 2016 depends on what your intention of investing in the instrument is.

    By David Ashworth
  • uploads///Chart
    Macroeconomic Analysis

    Rate Hike Expectations Propelled Financial Stocks Higher

    Many banks and financial service providers’ stocks rose on December 15. US investors picked the stocks with the expectation of the zero interest rate policy.

    By Renee Blakely
  • uploads///Monetary Policy Stance
    Macroeconomic Analysis

    Monetary Policy 101: What You Should Know ahead of the FOMC

    The Federal Reserve seems ready to tighten its monetary policy stance. But before we move ahead with our analysis, let’s make sure we understand why the Fed’s tightening in the first place.

    By David Ashworth
  • uploads///Effective Federal Funds Rate
    Macroeconomic Analysis

    What Can Investors Expect from the Interest Rate Environment?

    Central bankers haven’t taken a rate hike in 2015 off the table. Market participants felt that the liftoff would take place in 2016. They seem to be preparing for 2015.

    By David Ashworth
  • uploads///Average Daily Trading Volume in US Treasuries
    Macroeconomic Analysis

    Treasury Market Liquidity: Cause for Concern?

    In a Fed assessment, research showed that there’s ample liquidity in the Treasury market. But other measures point to a deterioration in liquidity.

    By David Ashworth
  • uploads///Sep dot plot
    Macroeconomic Analysis

    The US Monetary Policy: Fischer and Brainard Speak Out

    With regard to US monetary policy, there’s been a lot of emphasis on the timing of the first increase in the federal funds rate. The path of the funds rate is more important than the first increase.

    By David Ashworth
  • uploads///weekly loan to deposit ratio
    Macroeconomic Analysis

    Loan-to-Deposit Ratio Moves in the Right Direction for Banks

    The ideal loan-to-deposit ratio for a bank depends on the bank’s business model. Some banks that focus on core banking, like U.S. Bancorp (USB), have high loan-to-deposit ratios.

    By Rekha Khandelwal, CFA
  • uploads///Liabilities and stockholders equity
    Company & Industry Overviews

    J.P. Morgan and Its Diversified Funding Sources

    Banks like US Bancorp (USB) and Wells Fargo (WFC) have an advantage over J.P. Morgan in terms of debt rating. Both banks secure higher ratings.

    By Rekha Khandelwal, CFA
  • uploads///FOMC composition
    Macroeconomic Analysis

    Why the Federal Reserve’s Meeting Minutes Affect Your Investments

    You don’t have to be an institutional investor or money manager for the FOMC’s meeting minutes to have an impact on your investments.

    By David Ashworth
  • uploads///SunTrusts deposit growth
    Company & Industry Overviews

    SunTrust Bank’s Deposit Growth Lower than Industry Average

    STI’s deposit growth is clearly lagging behind the industry average. Other banks are experiencing strong growth in this area.

    By Rekha Khandelwal, CFA
  • uploads///Price to book ratios ROE
    Company & Industry Overviews

    BB&T’s Relative Valuation Is close to the Industry Average

    BB&T’s loan and deposit growth is marginally below the industry average. Its ROE and price-to-book ratio are close to the peer average.

    By Rekha Khandelwal, CFA
  • uploads///BBTs funding mix
    Company & Industry Overviews

    Why BB&T Has Low Funding Costs Compared to Its Peers

    Deposits are the cheapest funding source. Since deposits fund a major chunk of BB&T’s assets, the overall funding costs are low.

    By Rekha Khandelwal, CFA
  • uploads///BBTs expanding geographic footprint
    Company & Industry Overviews

    BB&T to Expand Its Footprint in Ohio and the Mid-Atlantic Region

    BB&T’s Susquehanna acquisition will significantly expand BB&T’s Mid-Atlantic footprint. The deal is valued at ~$2.5 billion. It will close in the second half of 2015.

    By Rekha Khandelwal, CFA
  • uploads///Loan to deposit ratio
    Macroeconomic Analysis

    Why Is the Loan-to-Deposit Ratio Declining for US Banks?

    The industrywide loan-to-deposit ratio has declined over the last few years, largely due to the increase in non-interest-bearing bank deposits.

    By Rekha Khandelwal, CFA
  • uploads///Quarterly net interest margins
    Macroeconomic Analysis

    Why Lower Funding Costs Impact Net Interest Margins

    Lower funding costs determine a bank’s net interest margin. A bank has funding cost advantage when it pays less interest on borrowed funds and deposits.

    By Rekha Khandelwal, CFA
  • uploads///CFG
    Fund Managers

    Teachers fund eliminates stake in Citizens Financial Group

    Citizens Financial Group is a retail bank holding company. It posted fourth-quarter net income of $197 million, up from $152 million.

    By Samantha Nielson
  • uploads/// Trading Assets
    Macroeconomic Analysis

    Why trading assets are an important indicator for banks

    Total trading assets at banks stood at $655 billion at the end of 2014. Trading assets have increased by 24 basis points since 2Q14.

    By Saul Perez
  • uploads/// Performance in
    Company & Industry Overviews

    Valuation of PNC Bank is close to historical mean

    PNC stock was trading at a PBV ratio of 0.75 in November 2012. Since then, the stock has seen a smart move up and trades at a PBV multiple of ~1.08.

    By Saul Perez
  • uploads/// Strengths Weaknesses
    Company & Industry Overviews

    PNC Bank’s financial strengths outweigh its weaknesses

    PNC Bank has done a good job at reducing its non-interest expenses, but the bank’s efficiency ratio still remains above 60%.

    By Saul Perez
  • uploads/// Loans by Size
    Macroeconomic Analysis

    Why loans are the most important earning asset for smaller banks

    Loans as assets are less important for larger banks, as large banks tend to have a more diversified asset portfolio.

    By Saul Perez
  • uploads/// Total Loans
    Macroeconomic Analysis

    Why loan assets are gaining importance in the banking sector

    In recent years, trading assets had grown in importance, but after the sub-prime crisis, the importance of loan assets increased again.

    By Saul Perez
  • uploads/// Total Earning Assets
    Macroeconomic Analysis

    Why earning assets are an important indicator for the banking sector

    The banking sector has shown a trend of increasing earning assets, because banks have focussed on becoming leaner and improving operational efficiency.

    By Saul Perez
  • uploads/// Price Performance
    Macroeconomic Analysis

    Banking asset indicators: Do they make analysis easy?

    Banking asset indicators are important because the majority of banking income comes from the assets side of the balance sheet.

    By Saul Perez
  • uploads/// Auto Finance
    Company & Industry Overviews

    Why the auto finance market share needs to be protected

    Auto finance is a business where Capital One (COF) grew rapidly. The bank entered the market in 1997. Since then, it has been able to build a sizeable market share.

    By Saul Perez
  • uploads/// Share of businesses
    Company & Industry Overviews

    Analyzing Capital One’s business segments

    Capital One (COF) can be understood best by breaking it into different business segments—Credit Card, Consumer Banking, and Commercial Banking.

    By Saul Perez
  • uploads/// Subsidiaries
    Company & Industry Overviews

    What are Capital One’s three main subsidiaries?

    Capital One is organized into subsidiaries. Capital One’s principal subsidiary is a limited purpose credit card bank. It’s chartered in Virginia.

    By Saul Perez
  • uploads/// History
    Company & Industry Overviews

    Capital One’s history: From credit cards to a diversified bank

    Capital One’s history is shorter than other banks. In 1994, Signet Financial Corp. spun off its credit card business into a separate subsidiary—Capital One.

    By Saul Perez
  • uploads/// Types of Assets
    Macroeconomic Analysis

    Why the composition of banking assets matters

    The two main types of banking assets are loans and securities held.

    By Saul Perez
  • uploads/// Non Interest Expenses
    Company & Industry Overviews

    Non-interest expense management can improve at PNC Bank

    PNC’s net interest expenses stood at ~$9.5 billion at the end of 2014, $193 million lower than 2013 after curtailing salary and miscellaneous expenses.

    By Saul Perez
  • uploads/// Type of Loans
    Company & Industry Overviews

    PNC Bank loan book carries some risks

    PNC Bank’s loan book is skewed toward a few types of loans: commercial and industrial loans and 1–4 Family First Liens, about 44.5% of its total loans.

    By Saul Perez
  • uploads///A Geographical
    Company & Industry Overviews

    Does PNC Bank remain a strong long-term play?

    With a strong presence in the East, South, and Midwest, PNC Bank offers community banking, wholesale banking, corporate banking, and asset management.

    By Saul Perez
  • Financials

    Why Wells Fargo ranks high in overall competitiveness

    Cards represent another big area of opportunity for Wells Fargo. Only 36% of its retail banking clients and 20% of its mortgage clients have Wells Fargo cards.

    By Saul Perez
  • Financials

    Why Wells Fargo’s strategy is different from other banks

    “Strategy” can be defined in many ways. Generally, strategy is a long-term plan. There are two main aspects to strategy—operational level strategy and human resource level strategy.

    By Saul Perez
  • Financials

    Wells Fargo has room to grow in the international arena

    Being present in many countries helps banks profit from today’s borderless economy. Aside from the U.S., the top three countries where Wells Fargo is present are United Kingdom, Canada, and China.

    By Saul Perez
  • Financials

    Overview: The way traditional banks make money

    Generally, the interest charged from those who took the loans is higher than the interest paid to depositors—the difference in the interest earned and interest paid is the interest income that is essentially the money made by the bank from its core operations.

    By Saul Perez
  • uploads///KMX
    Consumer

    Chilton Investment Company sells its shares in CarMax in 4Q13

    Chilton liquidated its position in CarMax Inc. (KMX) in the fourth quarter that had accounted for 0.71% of the fund’s third quarter portfolio.

    By Samantha Nielson
  • uploads///GCO
    Consumer

    Chilton Investment Company sells its shares in Genesco

    Chilton exited its position in Genesco Inc. (GCO), which had accounted for 1.15% of the fund’s third quarter portfolio.

    By Samantha Nielson
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