SWOT ANALYSIS ON US BANCORP

SWOT ANALYSIS ON US BANCORP[/b]

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[/b]

Strengths [/b]

• 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 [/b]

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

Opportunities [/b]

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

Threats [/b]

• 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
  

 

[Dhruv Bindhani]

SWOT ANALYSIS ON U.S. BANCORP​

This SWOT analysis examines U.S. Bancorp, a major diversified financial services holding company, based on its standing and operational context around 2009-2010. The analysis highlights its significant size and strong reputation, alongside areas for improvement and external challenges within the banking sector.

Strengths​

U.S. Bancorp's strengths are rooted in its considerable size, broad service offerings, and strong reputation. It is the fifth largest commercial bank in the United States based on assets, with $291 billion, and the sixth largest by deposits, boasting $183 billion as of December 2009. Its extensive geographical reach spans 24 states with 3,013 banking offices and 5,323 ATMs, providing widespread customer access. The company offers a strong and diversified product portfolio, including regional consumer and business banking, wealth management, national wholesale and trust services, and global payments services, serving over 15.8 million customers. Its strong credit ratings are crucial for financial stability and investor confidence. The bank has received numerous accolades, including being named "Best Bank in the U.S." by Euromoney, top banking team for women leaders by U.S. Banker magazine, and ranked #1 for shareholder-friendliness by Institutional Investor magazine, all contributing to its strong brand recognition and positive reputation. Its long-standing history, operating under the second-oldest continuous national charter, further solidifies its stability and experience.

Weaknesses​

Despite its robust position, U.S. Bancorp faces certain weaknesses. It is identified as underdeveloped in the debit card services business, indicating a potential gap in a key consumer banking area. A significant weakness is its lack of geographical diversification beyond its 24-state U.S. network, making it more vulnerable to regional economic downturns compared to globally diversified competitors. Furthermore, the analysis points to low productivity, with "Revenue per employee significantly lower than industry average," suggesting inefficiencies in its operational model relative to its peers.

Opportunities​

U.S. Bancorp has several avenues for strategic growth. The potential for acquisitions & further industry consolidation offers opportunities to expand market share, diversify offerings, and increase asset base within the U.S. There is an opportunity for global expansion, to diversify beyond its domestic focus and tap into international markets. The general trend of US commercial banking growth positions U.S. Bancorp well to continue expanding its presence and services within its existing market.

Threats​

U.S. Bancorp navigates an environment with notable external threats. Stricter banking regulations following the 2008 financial crisis pose a significant threat, potentially increasing compliance costs and limiting certain banking activities. Looming interest rate increases could slow credit withdrawals and impact loan demand, affecting revenue generation. Finally, while industry consolidation can be an opportunity, it is also a threat, as it "can potentially create larger opponents" with even greater resources and market power.