U.S. Bancorp CEO Sees Slow Growth in Future
The chief executive of U.S. Bancorp, Minneapolis, told attendees at an investor conference in Boston on Tuesday morning not to expect anything but organic growth from the company over the next decade.
Richard K. Davis, speaking at the Citi 2013 U.S. Financial Services Conference, commented the company likes the business model it currently has, and it works very well.
Speaking specifically about the possibility of acquiring another bank, Davis said, “We don’t need to do a deal unless it comes along at the right level.”
He gave a 1Q13 update and started off by saying that in general the business climate right is not positive for banks.
As for its mortgage business, U.S. Bancorp had a strong day in application volume one day a week ago (Davis did not get specific). January and February were weak months for mortgage volume, and he wasn’t sure if it could be attributed to the weather.
From the linked quarter, mortgage banking revenue is expected to be down 15%, application volume down between 14% and 15%, and the gain-on-sale margin also will be down. Therefore there should be a 10% to 15% reduction in mortgage banking income.
In 4Q12, the company had $29 billion of mortgage and other retail loan originations and mortgage banking revenue of $476 million.