Profit improves for Vegas bank operators

Wednesday, Jan. 22, 2003 | 11:02 a.m.

SUN STAFF AND WIRE REPORTS

U.S. Bancorp on Tuesday reported fourth-quarter net income of $849.8 million, or 44 cents per share, compared with $695.4 million, or 36 cents per share, a year earlier.

Excluding after-tax merger and restructuring charges, earnings at the Minneapolis-based bank were $920.1 million, or 48 cents a share. That met the estimate of analysts surveyed by Thomson First Call.

Its shares fell 33 cents to $22.10 on the New York Stock Exchange.

U.S. Bancorp, a player in the Las Vegas market, reported that strong growth in consumer banking and payment services was offset somewhat by lower investment banking earnings.

"We have achieved all our objectives," said Jerry A. Grundhofer, chairman, president and chief executive. "We are now in the position to capitalize on our growth potential."

U.S. Bancorp also reported $54.1 million of mortgage servicing rights impairment and $50 million in litigation charges, which included the settlement of allegations that U.S. Bancorp Piper Jaffray misled investors by inflating stock ratings.

Earnings for all of 2002 totaled $3.29 billion, or $1.71 a share, up from $1.71 billion, or 88 cents a share, in 2001.

The bank's loan loss provision was $1.35 billion at year's end, compared with $2.15 billion a year earlier.

Separately, Seattle-based Washington Mutual Inc., the largest U.S. savings and loan, said fourth-quarter profit rose 15 percent to $969 million.

Net income increased to $1.03 per share compared with $842 million, or 97 cents a share, a year earlier, said Washington Mutual, an aggressive competitor in the Las Vegas lending industry.