Both of the KBW Bank Index and the S&P500 are at record levels. USB is a component of both indexes, but our stock is trading at the same price as it was 3rd Q 2016. In that time period, the KBX index gained 73%, while the S&P 500 is up 196%. US Bancorp? Negative 2%.
This is startlingly bad performance. Senior management has been compensated to the tune of hundreds of millions of dollars for presiding over this lost decade. The Board approves increasingly ludicrous compensation packages for the very people that are responsible for this destruction of value, even while layoffs are implemented and the talent drain continues.
It's very hard to believe that GK has any chance of righting this sinking ship given what we've seen of her thus far.
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We could increase top line so we wouldn't have to pinch pennies on expenses if we had a true investment banking unit to generate real fee revenue. Otherwise we will continue to lag behind the top banks.
So glad I sold all my shares years ago. Some people say USB puts shareholders before employees. I say they're sc--wing over the shareholders too. Just hilarious to think that all those executives were paid hundreds of millions of dollars for USB to lose value AND under perform against peers.
I think the downfall of U.S. Bank was the race car driver that lead to the AML MRA from the OCC and fine. After that we just ramped up hiring layers and layers of staff that wasn't revenue generating. Then we hired consultants to help us figure out how to make money with the bloated overhead. Previously we had a strong credit culture and very efficient operations. A very simple business model. Now it's restructure after restructure and we lost our identity. We moved to Charlotte and NYC to hire people who were fired from BofA, Wells, Chase, Citi and all those people filled their little empires with people from those banks as if they are better than the previous generation of bankers from Minneapolis, Milwaukee, Cincinnati, Portland, etc. Years ago when Citibank almost folded the OCC put a former U.S. Bank person in charge to right the ship. We were considered the best run and best credit culture.
You cannot outsource risk and significant business decisions to consultants who are paid just to make the officer and director decisions defensible, shareholders, employees and bondholders actually expect decisions from leadership that make the bank money, not talking points and plausible justification, i.e. "we ran it past one of the recognized industry consultants and they said . . . . . . . . . (what we paid them to say).
U.S. Bank should jettison a number of underperforming business lines, much like it did home mortgages and automobile loans, last time they needed to make a number, however, they've paid the consultants to tell them not to sell the various business lines that they have severely mismanaged, cannot grow and are rapidly becoming the laughing stock of their respective business categories, primarily because they are owned, hamstrung and mismanaged by U.S. Bank.
@ct a once great company led by RD gone to dogs thanks to McKinsey and our spineless execs.
@c6 This! OP needs to include dividends and recalculate.
Berkshire Hathaway figured this out during AC's tenure and exited the U.S. Bank holding in its entirety. Buffet was quoted during Richard Davis' rein that he just loved U.S. Bank. One would only wonder what would happen to U.S. Bank if Blackrock, J.P. Morgan, MUFG Bank and Wells Fargo took the same position?
@OP The yield is high cause dividends increase but the stock price goes nowhere
For what it’s worth, most investors buy USB for the dividends not the growth potential, because you’re right- there’s zero growth.
I started at USB in 2014, since then, JPM has increased over 500% while USB has increased less than 10%
The best course of action would be to sell. This place is hopeless at the top ranks and has no intention of fixing anything anytime soon. We have a terrible board of directions who have aided and abetted the destruction of shareholder wealth.