U.S. Bancorp Comparative analysis


  • U.S. Bancorp has 2.6% of assets in cash; more than Wells Fargo (1%) and Citigroup (1.2%)
  • 60.9% of assets are loans compared to 50.6% (Wells Fargo) and 35% (Citigroup)
  • Less inherent risk for U.S. Bancorp because other asset classes for these banks include investment securities that can fluctuate


  • Deposits make up 80.1% of liabilities for U.S. Bancorp compared to 76.8% (Wells Fargo) and 35% (Citigroup)
  • Lower cost of equity for Wells Fargo and U.S. Bancorp because cost is interest paid on deposit accounts
  • Less debt taken out from other institutions and less restrictions on use of money


  • 11.8% of equity for U.S. Bancorp is from preferred stock compared to 11.5% (Wells Fargo) and 7.5% (Citigroup)
  • Common stock makes up 0.04% of equity for U.S. Bancorp compared to 4.7% (Wells Fargo) and 0.01% (Citigroup)
  • Retained earnings makes up 99.1% of equity for U.S. Bancorp compared to 93.7% (Wells Fargo) and 108.5% (Citigroup)
  • Citigroup accumulated other comprehensive loss that brought retained earnings below total equity

Income statement

  • U.S. Bancorp has 81.1% of interest income from loans (74.2% for Wells Fargo)
  • Next major contributor was investment securities while investment securities and trading assets were next two contributors for Wells Fargo
  • Interest expense was 49.9% from long-term debt for U.S. Bancorp (65.2% Wells Fargo)
  • Deposit interest is 36.2% of interest expense for U.S. Bancorp (24.2% Wells Fargo)
  • Noninterest income is spread evenly for U.S. Bancorp with management fees and processing services provided 14.5% and 17% of noninterest income. Wells Fargo earned 35% of noninterest income from trust and investment fees
  • Compensation and employee benefits are 54.7% of noninterest expense for U.S. Bancorp (61.4% Wells Fargo)

Strengths and weaknesses

  • Uses deposits efficiently, does not have many loans for sale (1.7% of assets)
  • Investment securities and loans make up 97.2% of interest income. Low expectations of credit loss and rising stock market are favorable for this position
  • Deposits make up 32.6% of interest expense. Revenue from loans offsets these costs
  • Major contributor to interest income was investment securities (16.1% of interest income) which is good but also risky
  • 17.5% of interest expense came from short term borrowing. Money must be paid back soon with cash or liquidated assets

ROA & ROce

  • ROA was 1.4% for U.S. Bancorp (1.3% Wells Fargo and 1% Citigroup, Industry Avg. 1%)
  • ROCE was 6.3% for U.S. Bancorp (4.9% Wells Fargo and 2.1% Citigroup)
  • U.S. Bancorp is using assets well and equity is invested in the right places to increase net income which will drive the company's value up
Created By
Levi Smith


Created with images by winnifredxoxo - "balance scale"

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