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Customers are putting their cash to work, or at least taking it out of the bank, and bankers like U.S. Bancorp CEO Richard Davis think that could signal higher demand for loans down the road.
July 17 -
Strong gains in asset-management fees and a variety of one-time benefits helped offset a dip in interest income at the Pittsburgh bank. Its CEO says to look for more of the same in the second half of the year and not to expect it to buy another bank.
July 17 -
U.S. Bancorp is beefing up its prepaid card business.
November 27
U.S. Bancorp (USB) is in acquisition mode, just not for banks.
Chief Executive Officer Richard Davis made it painfully clear
"We haven't seen any activity. I mean I could make it up I wouldn't but I could make it sound interesting. But we haven't. We have had no approaches of any significance. We are not approaching anyone," Davis said in response to a question from Dan Werner, an analyst at Morningstar, about bank M&A. "I mean it couldn't be more dormant, and our interest couldn't be lower."
His remarks echoed recent comments by
As the fifth-largest bank by a wide margin, U.S. Bancorpin Minneapolis likely has the best chance of swaying regulators to let it buy, but observers say it would need to be a bank that would substantially change its market share in a given area.
Werner responded to Davis' candid response with: "I was just wondering if there were any changes."
However, Davis got more excited by a question from Jon Arfstrom, an analyst at RBC Capital Markets, about M&A in the payments and processing business.
"We are known to be an acquirer, an active acquirer," Davis said of U.S. Bancorp, which in December
Davis says that arena includes small startups not interested in doing a second or third round of capital raising, or that want to attach themselves to a bigger company.
"We have a very active list of M&A opportunities" in the payments sector, Davis says. "Fewer as a percentage would come to the end, but it is not for lack of having looked and seeing interest. And people know us so they are coming at us."
He acknowledged that M&A calculus is different for others.
"I read about the small banks continuing to cobble together to find some critical mass, which makes total sense to me because the cost of compliance and just regulatory costs are easier by a larger base," he says.