July 23, 2009

MINNEAPOLIS — Second-quarter profit plunged 76 percent at U.S. Bancorp as credit costs rose and it repaid a government loan. But the results still beat Wall Street expectations as net revenue hit a quarterly record and the stock rose nearly 4 percent Wednesday.
U.S. Bancorp said earnings available to common shareholders totaled $221 million, or 12 cents per share, in the three months ended June 30, down from $926 million, or 53 cents per share, a year ago.
Analysts had been expecting a profit of 10 cents per share, according to a poll by Thomson Reuters.
Net revenue was $4.2 billion, driven by increases in net interest income and higher mortgage banking revenue. The company said that was the highest it has had for any quarter.
Shares of the Minneapolis-based bank rose 69 cents, or 3.8 percent, to close at $18.96. The bank said results were weighed down by higher costs to cover rising loan losses, as well as a charge to repay government bailout funds and a special fee to the Federal Deposit Insurance Corp.