Sunday, January 25, 2015

Seeking Alpha: U.S. Bancorp's Steady Excellence Worth A Premium

Exciting is usually a bad thing in banking, and U.S. Bancorp (NYSE:USB) makes steady high-quality execution look pretty good. Not surprisingly, U.S. Bancorp isn't particularly levered to a quick turnaround in interest rates and management is not going to compromise underwriting discipline just to boost loan growth.

That said, U.S. Bancorp maintains one of the best net interest margins of its peer group, has kept pace with loan growth, is far more efficient with expenses, and has several lucrative fee-generating businesses. U.S. Bancorp looks as though it's priced only a bit below fair value, but that should be enough for long-term investors who want a cornerstone holding in financial services.

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U.S. Bancorp's Steady Excellence Worth A Premium

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