U.S. Bancorp (USB) to Recruit 4500 by 2015 - Analyst Blog

Contradictory to global major banks' move of conducting layoffs to reduce costs, Minneapolis-based U.S. Bancorp (USB) with increasing market share, profit on upswing and controlled expenses, is strategizing to improve its employee strength by 4,500 from 65,500 as of 2013. Notably, the bank aims to increase its staff to 67,000 by 2014 and to a further 70,000 by the end of 2015.

Further, at an interview with Bloomberg Television at the annual Clearing House conference in New York, CEO Richard Davis announced that new jobs will be for compliance and audit work amid increasing regulatory requirements. Additionally, some aging employees with experience and people unemployed over six months will be employed.

Last month, U.S. Bancorp reported net income of $1.5 billion in third-quarter 2014, slightly up on a year-over-year basis. Higher revenues, a strong capital position, lower nonperforming assets and growth in average loans and deposits were the positives for the quarter.

We believe that U.S. Bancorp's attractive core franchisee, diverse revenue streams and strong performance in the past years have been impressive. A solid capital position and increase in lending activities augur well for the company. Moreover, the latest hike of 6.5% in the quarterly common stock dividend in Jun 2014 marks U.S. Bancorp's fourth dividend increase since 2011, reflecting its commitment to return value to shareholders with strong cash generation capabilities.

This recent move by U.S. Bancorp will boost investors' confidence as it exhibit the bank's market strength and growing capabilities amid current fundamental pressure in the banking sector. Further, we believe the company is well positioned to resolve its internal inefficiencies and setbacks.

U.S. Bancorp currently carries a Zacks Rank #3 (Hold). Some better-performing finance stocks worth considering include State Street Corp. (STT), German American Bancorp Inc. (GABC) and LNB Bancorp Inc. (LNBB). All three carry a Zacks Rank #2 (Buy).

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
US BANCORP (USB): Free Stock Analysis Report
 
STATE ST CORP (STT): Free Stock Analysis Report
 
LNB BANCORP INC (LNBB): Free Stock Analysis Report
 
GERMAN AMER BCP (GABC): Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research