U.S. Bancorp Posts Record Q3 Profit

U.S. Bancorp (NYSE: USB) reported third-quarter 2012 results before markets opened this morning. The Minneapolis-based bank posted earnings per share (EPS) of $0.74 on revenues of $5.18 billion. In the same period a year ago, the company reported EPS of $0.64 on revenues of $4.74 billion. Third-quarter results also compare to the Thomson Reuters consensus estimates for EPS of $0.74 and $5.14 billion in revenues.

The company’s chairman and CEO said:

Our third quarter earnings included continued strong mortgage banking activity, which contributed to our growth in fee income, residential real estate loans and loans held for sale. Solid new lending activity outside of mortgage also helped to grow our balance sheet, particularly in commercial loans. … during the third quarter we were able to return 67 percent of our earnings to shareholders in the form of dividends and share buybacks — consistent with our goal of returning 60-80 percent of the capital we generate back to our shareholders.

U.S. Bancorp also said its Tier 1 common ratio was 9.0% and its Tier 1 capital ratio was 10.9%.

The consensus analyst estimate for the fourth quarter calls for EPS of $0.74 on revenue of $5.13 billion. The full year forecast calls for EPS of $2.85, which would be about 15% higher than a year ago, on revenue of $20.24 billion, which would be up almost 6%.

Shares are inactive in premarket trading and closed yesterday at $33.61. The 52-week range is $23.72 to $35.46. Thomson Reuters had a consensus analyst price target of $36.32 before today’s report.