Wednesday, 10 September, 2008
U.S. Bancorp said its bad loans might increase by nearly 30 percent this quarter.
At a conference in New York Tuesday, Minneapolis-based U.S. Bancorp (NYSE: USB) Chief Executive Officer Richard Davis told investors that the cost of bad loans could increase 25 percent to 28 percent from the previous quarter.
He also said that nonperforming assets (loans that aren’t meeting interest payments) may have increased as much as 32 percent.
Much of the default amount is tied to commercial real estate from California developers; however, Davis added that the company’s conservative approach to lending should soften the blow. He also said that the company is still building reserves and should not need more capital.
Source: http://www.bizjournals.com/
