U.S. Bancorp CEO: Demand for loans not there

Davis made the comments at a Barclays Capital conference in New York, reports CNBC.

Davis also said the bank is thinking about raising its quarterly dividend from 5 cents a share. U.S. Bancorp slashed its dividend 88 percent in March, as did most banks struggling to survive the financial crisis.

U.S. Bancorp is one of the larger stock holdings of Warren Buffett's Berkshire Hathaway. Buffett likes the plain-vanilla business model of U.S. Bancorp, as well as Wells Fargo and M&T Bank.

U.S. Bancorp has repaid its $6.6 billion loan from the U.S. government's Troubled Asset Relief Program.

Davis' comments show that banks aren't lending a lot in large part due to reduced demand from businesses that are hesitant to expand in these times. Many have criticized banks for not lending more, but Davis' comments show that demand is just as big of a problem as supply when it comes to loan volume.

USB shares were up 1.5 percent in midday trading.