U.S. Bancorp (USB) investor relations material

Executive summary

• Record net revenue was $7.97B, up 8.7% YoY; net income was $2.202B, up 10.0%, and diluted EPS was $1.34, up 9.8%.

• Positive operating leverage was 240 bps; results benefited from stronger NII and fee revenue, partly offset by higher expenses and credit-loss provision.

• Return on tangible common equity was 18.5%, and the net charge-off ratio was 0.51%.

Financial highlights

• Taxable-equivalent NII was $4.490B, up 5.6% YoY; NIM was 2.84%, up 9 bps YoY and 5 bps QoQ.

• Fee revenue was $3.545B, up 14.9% YoY; noninterest expense was $4.493B, up 7.1%, or 2.0% excluding BTIG.

• Average loans were $409.5B, up 8.0% YoY; average deposits were $526.6B, up 2.9%, and ending deposits were $531.7B.

• Excluding a $101M acquired-loan provision, adjusted net income to common shareholders was $2.196B and adjusted diluted EPS was $1.41, up 16% YoY; the provision reduced EPS by $0.07.

• Provision for credit losses increased 14.5% to $654M, including $135M for acquired small-business card loans.

Outlook and guidance

• 4Q26 taxable-equivalent NII guidance is up 6%–7% YoY, fee revenue up 13%–14% and noninterest expense up ~8%; roughly half of fee growth and ~4% expense growth exclude BTIG.

• FY26 net revenue growth guidance is 8%–9%, or 6%–7% excluding BTIG; positive operating leverage is 300+ bps, or ~400 bps excluding BTIG.

• Medium-term 2026–27 targets include ROA of 1.15%–1.35%, high-teens return on tangible common equity, mid-single-digit fee growth and a mid-to-high-50s efficiency ratio.

• Q4 NIM is expected to rise another 5 bps; management sees a path to 3% in 2027, subject to the yield curve and deposit competition.

• Share repurchases are expected to resume over the next quarter or two, subject to loan demand, rates, RWA needs and regulatory developments; the payout target remains 70%–75%.