U.S. Bancorp reported net income of $1,456 million for the fourth quarter of 2013 compared with $1,420 million in the fourth quarter of 2012. The company said full year 2013 net income was a record $5.8 billion, up 3.3% or $189 million from $5.6 billion a year earlier.

The year-over-year earnings improvement was driven primarily by a 28.8% reduction in provision charges of $542 million ($1.340 billion versus $1.882 billion), which more than offset year/year declines in both net interest income and non-interest income. Total net charge-offs for the year of $1.465 billion were 33.3% lower than the previous year and exceeded provision charges by $125 million.

U.S. Bancorp president and CEO Richard K. Davis said, “Credit quality continues to be strong, as total net charge-offs and nonperforming assets declined, again, in the fourth quarter. Net charge-offs were .53% of average total loans compared with .85% in the same quarter of 2012.”

To read the full U.S. Bancorp news release click here.