UPDATE 1-US Bancorp eyes dividend increase

* Bank eyes dividend increase from 5 cents a quarter

* CEO not concerned about commercial real estate

NEW YORK, Sept 15 (Reuters) - U.S. Bancorp (USB.N), which slashed its dividend 88 percent in March, is considering raising the payout in the near-term, Chief Executive Richard Davis said on Tuesday.

The bank, which trimmed its quarterly dividend to 5 cents a share during the spring stock market slump, is reviewing its payout after repaying $6.6 billion from the U.S. government's Troubled Asset Relief Program, Davis told a Barclays Capital conference in New York.

"You will see us take action in the near-term that will be favorable," to the dividend, he said.

Separately, Davis said that while loan losses will continue to rise this year, the rate of the increase is slowing. But broadly, demand for loans remains lower than the bank's appetite to lend.

Davis also said he is not concerned about the bank's commercial real estate portfolios, where other banks have recently reported rising losses.

Shares in Minneapolis-based US Bancorp were up 2 cents to $22. Through Monday's market close, US Bancorp shares have fallen 12 percent this year. (Reporting by Elinor Comlay; Editing by Tim Dobbyn)