...Strong Earnings Performance: U.S. Bancorp's (USB) earnings performance is consistently at the top of the banking industry, and is a core strength and ratings driver for the company. USB's earnings performance is supported by a low-cost operating model, good deposit pricing and a sizable component of non-interest income in the company's earnings. Given this model, Fitch Ratings expects USB's earnings to remain near the top of the banking industry over the near to intermediate term. Low-Cost Deposit Base: Fitch believes that USB's low-cost deposit base is a key competitive advantage, allowing USB to profitably lower loan prices to win new business. This is important because it brings in new banking relationships to which the company can then aggressively cross- sell other services to drive non-interest income growth. Successful cross-selling efforts create a virtuous cycle for USB, fostering much stickier customer relationships and in turn allowing lower deposit costs, which can be used to...
