4 Things to Expect From U.S. Bancorp in 2021
Long known as one of the best-run regional banks in the country, the $540 billion asset U.S. Bancorp (NYSE: USB) struggled like the rest of the banking sector in 2020 as the bank worked through the ongoing coronavirus pandemic. U.S. Bancorp saw its stock price decline roughly 21% in 2020, as it dealt with higher credit costs related to potential loan losses resulting from the economic environment. But with the new year now underway, let's see what's in store for the bank in 2021.
This should not really come as a surprise, but U.S. Bancorp -- as with almost all banks -- should be more profitable in 2021 than 2020, as coronavirus vaccines are rolled out and the economy hopefully begins running at a more normal pace. The improved profits at U.S. Bancorp should really be a function of lower credit costs, because ideally U.S. Bancorp will not have to reserve significant amounts of additional capital for future potential loan losses in 2021.
Image source: U.S. Bank
Source Fool.com