U.S. Bancorp, a financial services holding company, provides a range of financial services in the United States. It offers depository services, which include checking accounts, savings accounts, and time certificate contracts; and lending services, such as traditional credit products, as well as credit card services, leasing financing, import/export trade, asset-backed lending, agricultural finance, and other products. The company also provides ancillary services, including capital markets, treasury management, and receivable lock-box collection services to corporate customers; and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations. In addition, the company offers investment and insurance products to its customers principally within its markets, as well as fund administration services to a range of mutual and other funds. Further, it provides corporate and purchasing card, and corporate trust services; and merchant processing services, as well as offers cash and investment management, ATM processing, mortgage banking, and brokerage and leasing services. The company serves individuals, businesses, institutional organizations, governmental entities, and other financial institutions. The company offers its services through a network of 3,106 banking offices primarily in the Midwest and West regions of the United States; and a network of 4,842 ATMs, as well as through on-line services and over mobile devices. U.S. Bancorp was founded in 1863 and is headquartered in Minneapolis, Minnesota.
Business Analysis of US Bancorp
The Banking Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how US Bancorp compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by US Bancorp to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of US Bancorp with an interactive chart.
- Revenue Growth: US Bancorp reported a revenue growth of 4.3% year-on-year during 2016. Banking Industry grew at 1.5% in the same period
- COGS share of Revenues: US Bancorp COGS share of Revenues details are not available because either company does not share the data or we do not have it
- R&D share of Revenues: US Bancorp R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, US Bancorp spent 48.1% of its total revenues on Sales, Marketing, and General Administration (SG&A). Banking industry average SG&A spending in the same period was 53.7%
- Inventory share of Revenues: US Bancorp Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: US Bancorp Accounts Payable share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Receivable share of Revenues: US Bancorp Accounts Receivable share of Revenues details are not available because either company does not share the data or we do not have it
- PP&E share of Revenues: As a percentage of revenue, US Bancorp invested 12.4% of its total revenues on Property, Plants, and Equipments (PP&E). Banking industry average PPE investment in the same period was 14.0%
- Intangibles share of Revenues: As a percentage of revenue, US Bancorp invested 63.9% of its total revenues on Intangibles. Banking industry average Intangibles investment in the same period was 60.1%
- Net Margins: US Bancorp Net Margins in the year 2016 were 29.8%. Banking industry average Net Margins in the same period were 23.5%
Sector and Industry Association of US Bancorp
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
US Bancorp is associated with Financials Sector Group, Banking Sector, and Banking Industry.
Banking sector is comprised of a single industry: Banking. Its definition is as follows:
- Banking industry includes banks providing a broad range of financial services, including retail banking, loans and money transmissions.
Industry Ranking of US Bancorp
With $19.8 billion revenues, US Bancorp ranked number 5 of all the companies in the US Banking industry. There were a total of 179 public companies in the US Banking industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Banking industry by revenues during 2016 were:
- JPMorgan Chase ($95.7 billion)
- Wells Fargo ($84.5 billion)
- Bank of America ($83.7 billion)
- Citigroup ($69.9 billion)
- US Bancorp ($19.8 billion)
- PNC Financial Services Group ($15.2 billion)
- BB&T ($10.2 billion)
- SunTrust Banks ($8.2 billion)
- Fifth Third Bank ($6 billion)
- Regions Financial ($5.3 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.