US Bancorp (USB) Update: Preparing to Cut Cost

US Bancorp CEO, Richard Davis, said in a recent Wall Street Journal article that his bank is preparing for cost-cutting measures if interest rates don't rise soon.  USB's revenues are split between fee revenue and interest rate sensitive revenues, but the low interest rate environment is still putting significant strain on the company. Irrespective of interest rates, USB is a very well-run bank with a healthy dividend that is in no way in jeopardy.  We continue to hold the stock as we believe it trades below its intrinsic value.  And if interest rates do eventually rise, that will be an incremental positive for the bank.  You can read our complete thesis here.