Second-quarter profits dip for Bancorp

18 July 2007

Second-quarter profits for US Bancorp have dipped slightly as rising costs and bad loans acted to offset gains made through asset management and payment processing.

The sixth-largest US bank's net income stood at $1.16 billion, or 65 cents a share - down 3.7 per cent from the year's ago period's figure of $1.2 billion, or 66 cents a share.

The performance is slightly below expectations, with analysts cited by Bloomberg forecasting that earnings would hit 67 cents a share.

The principal driving factors behind the downturn were higher costs accruing from acquisitions and investments, with non-interest expenses rising 7.2 per cent to $1.64 billion.

Meanwhile, revenue from mortgage banking declined by 9.3 per cent, or $7 million from the same period last year.

News of the bank's showing comes as it has separately announced that Michael Doyle has resigned as chief credit officer.

While the bank seeks to replace him, his position will be filled jointly by Scott Hickey and P W Parker, who are senior credit officers.

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