MINNEAPOLIS U.S. Bancorp plans to reduce its risk profile by selling the old U.S. Bancorps higher risk, unsecured small-business portfolio, according to Goldman Sachs Group bank analyst Lori Appelbaum, who recently met with U.S. Bancorp management.
The company, formerly known as Firstar Corp., which acquired U.S. Bancorp and took its name in February, also sold $1.3 billion in high loan-to-value mortgages from the old U.S. Bancorp and in the first quarter wrote down $830 million in commercial loans, Ms. Appelbaum said.
While credit trends are somewhat uncertain, it is possible that credit quality trends will be a bit more benign given the actions taken, Ms. Appelbaum wrote in a research note issued Friday. The decision to rid the company of some riskier loans follows similar moves by other banks including Bank of America Corp., Bank One Corp., First Union Corp. and FleetBoston Financial Corp.
