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| From Barclays Conference 2014 Presentation |
Interest rates are still low so banks are finding ways to boost their non-interest income through expansions of investment management and fee-based services with U.S. Bancorp having a good 50/50 split. When evaluating financial companies ROA and ROE are the important metrics to check. Basically you want to see how well the company uses its assets to generate money and compared to its peers US Bank is one of the best.
| Company | ROA | ROE |
| U.S. Bancorp | 1.60 | 15.10 |
| Wells Fargo | 1.43 | 14 |
| J.P. Morgan | 0.6 | 7.29 |
| PNC | 1.26 | 9.42 |
U.S. Bancorp is first and foremost a bank with a clean balance sheet of high quality loans, excellent operating margins at 40%, and consistent EPS. When interest rates rise they will benefit from increased profits but currently everything is status quo and I don't see any drivers of short-term growth or expansion that would cause the stock to jump. US Bank would be a good place to park some money for long term appreciation and would qualify for me as a core financial holding.
