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Stock impact report

Better Buy: U.S. Bancorp vs. Bank of America [The Motley Fool]

U.S. Bancorp (USB) 
Last u.s. bancorp earnings: 4/15 06:45 am Check Earnings Report
Company Research Source: The Motley Fool
This edition of Better Buy places two ofWarren Buffett'sBank of America(NYSE:BACU.S. BancorpNYSE:USBbanksWhile I don't think either is necessarily a bad play, I would invest in U.S. Bancorp after seeing first quarter earnings reports. Not only did U.S. Bancorp report a smaller drop in earnings in the first quarter than Bank of America, but it also had a lower credit provision and more confidence that it would be able to maintain its current dividend throughout the year.Image source: Getty Images.The credit provisionAlthough Bank of America is much larger than U.S. Bancorp in total assets, the two have some similarities in their portfolios. For instance, credit card loans make up 9% of Bank of America's portfolio and 8% of U.S. Bancorp's portfolio, while non-interest income makes up about 6% and % of their total revenue, respectively.So, it was a little surprising to see Bank of America report a much larger increase in its credit provision (cash banks set aside for future loan losses) Show less Read more
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