US Bancop saw fourth-quarter earnings rise 2.5%, according to MarketWatch. The lender reported a Q4 profit of $1.46bn, up from $1.42bn in 2012.
Those profits came, however, at the same time as a precipitous drop in mortgage revenue. The bank’s mortgage-banking earnings plummeted 30% from the third quarter and 51% from last year, finishing Q4 at $231 million. The flatlining mortgage business was largely responsible for a 4.4% year-over-year decrease in the bank’s revenue.
The lender was able to stem the losses and turn a profit largely through lower taxes and earmarking less money for credit losses. US Bancorp’s credit-loss provisions were slashed from $443 million in the fourth quarter of 2012 to $227 million in Q4 of 2013.
A major regional lender saw a dramatic decline in mortgage revenue last year even as it saw profits rise.