Financial services holding company, US Bancorp, today reported record net income of $1,495 million for the second quarter of 2014, or $.78 per diluted common share, compared with $1,484 million, or $.76 per diluted common share, in the second quarter of 2013.
US Bancorp provides a range of financial services in the United States. Its services include lending and depository, cash management, capital market, and trust and investment management services, as well as merchant and ATM processing, mortgage banking, and brokerage services.
The second quarter of 2014 included two previously disclosed notable items for the company. Firstly, it reached a settlement with the US Department of Justice to resolve an investigation relating to the endorsement of mortgage loans under the Federal Housing Administration’s insurance programme (“FHA DOJ settlement”) for $200 million.
In addition, prior to the FHA DOJ settlement, the company sold 3.0 million shares of the Class B common stock of Visa Inc. resulting in a net pretax gain of $214 million (“Visa sale”). Combined, these notable items had no impact to diluted earnings per common share for the current quarter.
US Bancorp Chairman, President and Chief Executive Officer Richard K. Davis said that the result “reflects the overall strength and diversity of our business.” He continued:
“Once again, we delivered strong performance across key metrics with returns on average assets and average common equity of 1.60 per cent and 15.1 per cent, respectively, and industry-leading efficiency. These results highlight the benefits of our diversified business strategy and prudent expense management philosophy as we continue to produce strong returns for our shareholders.”
“We have frequently noted our company-wide focus on extending our advantage in every part of the business, across all geographies in which we operate. In line with that focus, we completed the acquisition of the Chicago-area Charter One Bank franchise in late June, which significantly expands our presence in that market and we welcome our new customers to US Bank.
“I am excited to have new members of the US Bank team in Chicago join the over 67,000 people who have made US Bank the great company it is today. With industry-leading financial strength and stability, widely recognized innovative products and services, and a talented and motivated team of exceptional people, we are well positioned to remain industry leaders.”
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