SWOT ANALYSIS ON US BANCORP
by Abhijeet S
Category Operations
 

 SWOT ANALYSIS ON US BANCORP

U.S. Bancorp is a diversified financial services holding company, headquartered in Minneapolis, Minnesota. It is the parent company of U.S. Bank, the fifth largest commercial bank in the United States based on assets, with $291 billion in assets. U.S. Bank ranks as the sixth largest bank in the U.S. based on deposits, with $183B in deposits as of December 31, 2009. With 3,013 banking offices and 5,323 ATMs, U.S. Bank's branch network serves 24 states. U.S. Bancorp offers regional consumer and business banking and wealth management services, national wholesale and trust services and global payments services to more than 15.8 million customers. The company employs over 60,000 people.

U.S. Bancorp is ranked 129 in the 2009 list of Fortune 500 companies.

U.S. Banker magazine, published by SourceMedia, has ranked U.S. Bancorp’s women leaders as the top banking team in its annual "Most Powerful Women in Banking" issue in 2006, 2007, 2008 and 2009.

U.S. Bancorp is ranked #1 by Institutional Investor magazine in its 2009 "America's Most Shareholder-Friendly Companies" for the Financial Institutions/Large-Cap category.

Kiplinger's 2009 "Best List" ranked U.S. Bank's FlexPerks card best if you want travel perks.

In July 2009, U.S. Bancorp was named the "Best Bank in the U.S." by Euromoney magazine as part of its 2009 Awards for Excellence.

U.S. Bank has been ranked first in the nation in the Privacy Trust Study for Retail Banking conducted by the Ponemon Institute in 2006, 2007,2008 and 2009.

U.S. Bancorp operates under the second-oldest continuous national charter, originally Charter #24, granted during Abraham Lincoln’s administration in 1863 following the passage of the National Banking Act. Earlier charters have expired as banks were closed or acquired, raising U.S. Bank from #24 to #2.

U.S. Bank has full-service branch offices in more states than any other bank.

U.S. Bank helped to finance Charles Lindbergh’s historic flight across the Atlantic.

U.S. Bank is the fifth-largest check processor in the nation, handling 4 billion paper checks annually at 12 processing sites. The bank’s air and ground courier fleet moves 15 million checks each day.

 

SWOT ANALYSIS ON US BANCORP

Strengths

  • Almost $250 billion in assets - the 6th largest commercial bank in the United States.
  • Geographical reach - operates 2,500 banking offices and almost 5,000 ATMs
  • Strong product portfolio - banking, brokerage, insurance, investment, mortgage, trust and payment services products to consumers, businesses and institutions.
  • Strong credit ratings
  • Diversified revenue streams

 

Weaknesses

  • Underdeveloped in the debit card services business
  • No geographical diversification
  • Low productivity: Revenue per employee significantly lower than industry average

 

Opportunities

  • Acquisitions & further industry consolidation
  • Global expansion
  • US commercial banking growth - US Bancorp well positioned to keep growing

 

Threats

  • Stricter banking regulations after 2008's financial crisis in the US
  • Looming interest rate increases which slow credit withdrawals
  • Further industry consolidation also a threat - can potentially create larger opponents