U.S. Bancorp (USB) investor relations material

Executive summary

• EPS increased 18.4% year-over-year to $1.22, with net income up 16.7% to $2,001 million and record net revenue of $7.329 billion, driven by strong fee businesses and improved spread income.

• Fee income represented approximately 42% of total net revenue, growing 9.5% year-over-year, and noninterest income rose 14.1%.

• Achieved 530 basis points of positive operating leverage and improved efficiency ratio to 57.2%.

• Return on average assets was 1.17%, and return on tangible common equity reached 18.6%.

• Diversified balance sheet and risk management led to improved credit quality and stronger capital and liquidity, with CET1 capital ratio at 10.9%.

Financial highlights

• Net interest income (taxable-equivalent basis) was $4.25 billion, up 2.0% year-over-year and 4.2% sequentially.

• Noninterest income reached $3.08 billion, up 14.1% year-over-year, with broad-based growth across all fee categories.

• Tangible book value per share increased 12.7% year-over-year to $27.84; book value per share rose to $36.33.

• Net charge-off ratio improved to 0.56%, and non-performing assets ratio improved to 0.43%.

• Efficiency ratio improved to 57.2%, down from 60.2% a year ago.

Outlook and guidance

• Q4 net interest income expected to remain stable at $4.25 billion, with fee revenue guidance at around $3 billion.

• Noninterest expense projected to rise 1–1.5% sequentially; positive operating leverage of 200+ basis points targeted.

• Medium-term targets include ROA of 1.15–1.35%, ROTCE in the high teens, and mid-single digit fee income growth.

• Path to 3% net interest margin by 2027, driven by fixed asset repricing, loan mix, and deposit strategy.

• Moody’s revised the outlook from negative to stable, citing strong diversification, balance sheet, and profitability.