By Will Feuer
U.S. Bancorp's employee expenses rose in the fourth quarter, contributing to an overall increase in non-interest costs for the U.S. Bank parent company as Wall Street firms continue to battle for talent.
Compensation costs for the company rose to $1.85 billion in the fourth quarter, up about 13% from $1.64 billion in the year-ago period. The jump in compensation was due to performance-based incentives, revenue related commissions, merit, and hiring to support business growth, the company said Wednesday.
Employee benefits also jumped about 23%, to $372 million over that same period, driven by higher medical claims expense and compensation related payroll taxes, the company said.
Along with an increase in costs tied to professional services as well as marketing and business development, employee costs contributed to a 5% year-over-year increase in non-interest costs, holding back the company's profit for the quarter, which came in below analyst expectations.
Write to Will Feuer at Will.Feuer@wsj.com
(END) Dow Jones Newswires