U.S. Bancorp's ( Part of warren Buffett Holdings) profit fell 65 percent in the fourth quarter of 2008 compared to the same period a year earlier, primarily due to higher provisions for credit losses.
US Bancorp reported net income of $330 million, or 15 cents per share, in fourth quarter 2008, compared to $942 million or 53 cents per share in the fourth quarter of 2007.
US Bancorp recorded $253 million in securities losses in the fourth quarter of 2008. U.S. Bancorp increased the provision for credit losses in the recent quarter by $1.04 billion compared to the prior year’s quarter, to nearly $1.27 billion, reflecting continued stress in the residential real estate market, the company said.
Fourth-quarter revenue grew 1.4 percent to $3.6 billion on 22.6 percent higher net interest income while noninterest income decreased 19.2 percent as the slowing economy hit equity valuations and customer behavior, the company said.
For the full year 2008, U.S. Bancorp saw its net income fall 31.9 percent to $2.9 billion, on net revenue that rose 4.4 percent to $14.7 billion.
U.S. Bancorp has $266 billion in assets and operates 2,791 banking offices in 24 states.
As per Sep 08 shareholding pattern of US Bancorp, Warren Buffett's Berkshire Hathaway is holding 2,627,190 shares.
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