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U.S. Bancorp Sees Mortgage Revenue Falling 20% in 3Q

SEP 13, 2013 10:24am ET
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U.S. Bancorp expects its mortgage revenue to drop 20% in the third quarter from the second period amid a decline in mortgage applications and mortgage production, chief financial officer Andrew Cecere said.

Mortgage applications will probably decline 40% in the three months ending Sept. 30 from the previous quarter, and mortgage production will drop 20%, Cecere said today at the Minneapolis-based bank’s investor day conference in New York. The company’s second-quarter mortgage-banking revenue was $396 million.

Meanwhile, Richard Davis, chief executive officer of U.S. Bancorp, the nation’s largest regional lender, said the size of his company is “perfect” and that it intends to be only in businesses where it can compete effectively.

“We’ll either be at scale, be getting to scale or get out,” Davis said at the Minneapolis-based bank’s investor conference in New York. “One of the reasons we’re not big on looking to double the size of the bank or pick up a bank of our size in another part of the country where we’re not is because we would much rather double down on where we already are.”

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