Standard&Poor's Ratings Services believes that U.S. Bancorp (USB) will continue to outperform its peer group of large regional and large complex banks as a result of a relatively low-risk business mix and a gain in market share because of its stronger-than-peers financial strength. However, the weakness of the economic rebound, combined with continuing elevated credit costs, could add to the time for USB to normalize its earnings. The bank's better capital and market confidence than peers' should provide an advantage in the competition for depositors and clients. Also, USB added to its strength by taking advantage of propitious terms from the Federal Deposit Insurance Corp. (FDIC) to expand market share by purchasing failing financial institutions at minimal risk.
