U.S. Bancorp looks to expand credit card business - News Wires

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U.S. Bancorp looks to expand credit card business

By: Reuters | 10 Nov 2009 | 04:56 PM ET

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NEW YORK (Reuters) - U.S. Bancorp <USB.N>, the sixth-largest U.S. bank by assets, is looking to expand its credit card business and is actively marketing its cards nationally, Chief Executive Richard Davis said at a conference on Tuesday.

The Minneapolis-based bank, which has so far avoided serious loan losses during the credit crisis because of its conservative underwriting standards, believes its credit card business can capture market share as larger card issuers report rising losses in these portfolios.

"It's 9 pct of our company's loan portfolio and we like it," said Davis, speaking at Bank of America Merrill Lynch's Banking and Financial Services Conference. The bank has a total loan portfolio of $183 billion.

Separately, Davis said the bank may still consider further acquisitions. Last month, U.S. Bancorp acquired the banking subsidiaries of Oak Park, Illinois-based FBOP Corporation in a deal backed by banking regulator the Federal Deposit Insurance Corp.

"FBOP represents the kind of deal we like," said Davis.

Shares in U.S. Bancorp fell 18 cents to $24.33 in trading on the New York Stock Exchange.

(Reporting by Elinor Comlay; Editing by Steve Orlofsky)

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