Today U.S. Bancorp disclosed a summary of its Dodd-Frank Act Stress Test
("DFAST") results. The disclosure includes U.S. Bancorp's projected
stressed minimum and end-of-period capital ratios for the period from
the fourth quarter of 2013 through the fourth quarter of 2015. The
projections assume annual common stock dividends equal to the average
dollar amount paid in the previous year and no stock redemption or
repurchase activity, in addition to estimates of losses, revenues, net
income before taxes and loan losses by type of loan over the same time
period. The projections were made under the Supervisory Severely Adverse
Scenario defined by the Federal Reserve. This hypothetical stressed
economic scenario is designed to assess the overall strength and
resilience of the banking industry and does not necessarily represent
future economic conditions expected by the Company.
A summary of the Company's DFAST results are included in the table
below. The Company's DFAST results may differ from those calculated and
published by the Federal Reserve due to differences in models,
methodologies and tax rate, among other things. A document summarizing
the risks and methodologies used to calculate the results, as well as an
analysis of the significant reasons for the changes in capital ratios
under the hypothetical stressed economic scenario is available on our
website at www.usbank.com.
Actual Q3 2013 and projected Q4 2015 risk-weighted assets
Stressed capital ratios (1)
Projected Q4 2015
component applied to derivatives, securities lending, and
and loans held for investment measured under the fair-value option.
Minneapolis-based U.S. Bancorp ("USB"), with $364 billion in assets as
of Dec. 31, 2013, is the parent company of U.S. Bank National
Association, the 5th largest commercial bank in the United States. The
Company operates 3,081 banking offices in 25 states and 4,906 ATMs and
provides a comprehensive line of banking, brokerage, insurance,
investment, mortgage, trust and payment services products to consumers,
businesses and institutions. Visit U.S. Bancorp on the web at www.usbank.com.
The following information appears in accordance with the Private
Securities Litigation Reform Act of 1995:
This press release contains forward-looking statements about U.S.
Bancorp. Statements that are not historical or current facts, including
statements about beliefs and expectations, are forward-looking
statements and are based on the information available to, and
assumptions and estimates made by, management as of the date hereof. The
forward-looking statements contained in this press release include,
among other things, projected future capital ratios, revenue, net income
before taxes, and loan losses of U.S. Bancorp based on a hypothetical
scenario containing assumptions that may not come to pass in the future.
There can be no assurance that U.S. Bancorp's actual results would match
the results disclosed herein if the assumed scenario was to occur.
These forward-looking statements cover, among other things, anticipated
future revenue and expenses and the future plans and prospects of U.S.
Bancorp. Forward-looking statements involve inherent risks and
uncertainties, and important factors could cause actual results to
differ materially from those anticipated. Global and domestic economies
could fail to recover from the recent economic downturn or could
experience another severe contraction, which could adversely affect U.S.
Bancorp's revenues and the values of its assets and liabilities. Global
financial markets could experience a recurrence of significant
turbulence, which could reduce the availability of funding to certain
financial institutions and lead to a tightening of credit, a reduction
of business activity, and increased market volatility. Continued stress
in the commercial real estate markets, as well as a delay or failure of
recovery in the residential real estate markets could cause additional
credit losses and deterioration in asset values. In addition, U.S.
Bancorp's business and financial performance is likely to be negatively
impacted by recently enacted and future legislation and regulation. U.S.
Bancorp's results could also be adversely affected by deterioration in
general business and economic conditions; changes in interest rates;
deterioration in the credit quality of its loan portfolios or in the
value of the collateral securing those loans; deterioration in the value
of securities held in its investment securities portfolio; legal and
regulatory developments; increased competition from both banks and
non-banks; changes in customer behavior and preferences; effects of
mergers and acquisitions and related integration; effects of critical
accounting policies and judgments; and management's ability to
effectively manage credit risk, residual value risk, market risk,
operational risk, interest rate risk and liquidity risk.
For discussion of these and other risks that may cause actual results to
differ from expectations, refer to U.S. Bancorp's Annual Report on Form
10-K for the year ended December 31, 2013, on file with the Securities
and Exchange Commission, including the sections entitled "Risk Factors"
and "Corporate Risk Profile" contained in Exhibit 13, and all subsequent
filings with the Securities and Exchange Commission under Sections
13(a), 13(c), 14 or 15(d) of the Securities Exchange Act of 1934.
However, factors other than these also could adversely affect U.S.
Bancorp's results, and the reader should not consider these factors to
be a complete set of all potential risks or uncertainties.
Forward-looking statements speak only as of the date hereof, and U.S.
Bancorp undertakes no obligation to update them in light of new
information or future events.
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