Diversified revenue stream High degree of operating efficiency Consistently strong profitability measures Targeted acquisition strategy, with good execution Relatively aggressive distributions to shareholders via dividends and share repurchases The ratings reflect U.S.Bancorp's (USB) continuing generation of well-above-average profitability among its peer group of large regional and large complex banks, even while it has maintained a relatively low-risk business mix and growth strategy. USB's results are significantly less volatile than those of many of its competitors, and profitability measures have remained strong despite the current challenging interest rate environment. USB benefits from a sizable and low-cost core deposit funding base that supports a cost of funds that remains among the lowest of its peers. This has helped enable the generation of
