U.S. Bancorp on Friday reported a dip in profits, due to a mix of lower fees and higher credit costs.

The $421 billion-asset company earned $1.5 billion in the fourth quarter, or about 1% less than a year earlier. Earnings per share were 80 cents, a penny better than the consensus estimate of analysts polled by Bloomberg.

Lackluster performance in fee-based lines of business weighed down the Minneapolis company's profits. Noninterest income slid about 1%, to $2.3 billion, because of lower revenue from mortgage banking and investment services.

The company also increased its set-aside for problem loans by 6%, to $305 million, in part because of stress on energy and metals-related credits. Additional loan-loss reserves may be required in the coming year, given the "uncertain outlook" for commodity prices, the company said in a press release.

Net interest income edged up 3%, to $2.9 billion, while total loans grew 4%, to $257 billion. The net interest margin shrank 8 basis points, to 3.06%

Noninterest expenses held steady at $2.8 billion.

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