U.S. Bancorp (USB) investor relations material

Executive summary

• Reported Q3 EPS of $1.22, up 18.4% year-over-year, 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.

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

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

• Strategic focus on organic growth, expense discipline, payments transformation, and continued investment in process automation and interconnected solutions.

• Asset quality and capital levels remain strong, with CET1 capital ratio of 10.9% at quarter-end.

Financial highlights

• Net revenue reached a quarterly record of $7.3 billion, with fee revenue up 9.5% year-over-year and fee income representing ~42% of total net revenue.

• Net interest income (taxable-equivalent basis) was $4.25 billion, up 2.0% year-over-year and 4.2% sequentially; noninterest income rose 14.1% year-over-year to $3.08 billion.

• 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 to loans/OREO was 0.43%.

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

Outlook and guidance

• Q4 net interest income expected to be stable at $4.25 billion; fee revenue guidance at ~$3.0 billion.

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

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

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

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