U.S. Bancorp profit rises as mortgage revenue soars

Wed Jan 16, 2013 7:47am EST

(Reuters) - U.S. Bancorp (USB.N), the fifth largest U.S. commercial bank by assets, posted a slightly higher quarterly profit, helped by a rise in mortgage revenue and commercial lending.

The bank, which has a market capitalization of nearly $63 billion, said its mortgage revenue more than doubled to $476 million.

The bank said earlier this month that it reached a settlement with the Federal Reserve for a foreclosure review, which includes a cash payment of $80 million and $128 million for other mortgage assistance.

U.S. Bancorp's net interest income for the fourth quarter rose 4 percent to $2.8 billion.

Total average commercial loans rose 16 percent to $64 billion. Provision for credit losses was down 11 percent to $443 million.

Shares of the Minneapolis-based bank closed at $33.28 on Tuesday on the New York Stock Exchange.

(Reporting By Neha Dimri in Bangalore; Editing by Supriya Kurane)

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