could you elaborate on your calculations for USB?
OK, here we go TreasureHunt. Here is my best, at the moment, view of the differences on USB's PTPP. The numbers I presented were based on the 2010 10k, I have done more analysis to see how things have changed this year.
USB used to have much higher profitability ratios. As an example, for 2009 with an estimate of $7B 2009 PTPP
PTPP / Assets: 2.5%
PTPP / Equity: 26.2%
PTPP / Revenues: 42.3%
So, I was not crazy. I did remember much higher profitability ratios for USB and that was usually the norm for them. However in 2010, PTPP practically did not move ($7B again
) despite growing revenues 16.5B -> 17.9B so it must be something about higher non-interest expenses that I have not pinpointed yet (USB is not in my watchlist and just follow it as an industry leader). At the same time the balance sheet grew so is no surprise that the profitability ratios deteriorated.
Assets 281B ->308B
Now, I tried to see if something changed in 2011. We do not have the 10K so there are cash flow statements only for the first 3Qs. With those, I am getting an annualized $7.6B PTPP
, that is higher, but the "mediocre" profitability ratios have not changed much
2011 Q3 annualized
PTPP / Assets: 2.3%
PTPP / Equity: 22.2%
PTPP / Revenues: 42.8%
Considering that the numbers you share are for Q4 2011 I would need that 10K to see if things have changed or if it includes some one-times. For example, the income statement might include profits from sale of REO or loans.
I will adjust the PTPP for USB in my spreadsheet to $7.6B. Considering that they are one of the few large banks that have managed to grow it recently it distorts the multiples when compared against the others.