U.S. Bancorp (USB) Q4 2025 earnings summary

Executive summary

• Delivered record net revenue and EPS in Q4 2025, with net income of $2.05B, adjusted EPS of $1.26, and full-year net revenue of $28.7B.

• Achieved positive operating leverage of 440 bps in Q4 and 370 bps for the year, with six consecutive quarters of positive leverage.

• Strategic execution focused on organic growth, disciplined expense management, and payments transformation, operating within all medium-term targets.

• Announced acquisition of BTIG to enhance capital markets capabilities, expected to close in 2Q26.

• Continued investments in digital assets, AI, and organizational transformation.

Financial highlights

• Net interest income for 4Q25 was $4.31B, up 3.3% year-over-year; net interest margin rose to 2.77%.

• Fee revenue grew 7.6% year-over-year in Q4; efficiency ratio improved to 57.4%.

• Return on tangible common equity was 18.4%; return on average assets 1.19%.

• Net charge-off ratio was 0.54%; nonperforming asset ratio improved to 0.41%.

• Total assets were $692.3B; total loans $391.3B; total deposits $522.2B.

Outlook and guidance

• 2026 net revenue growth expected at 4%-6% year-over-year, with positive operating leverage of 200+ bps.

• Q1 2026 guidance: net interest income up 3%-4%, fee revenue up 5%-6%, non-interest expense up ~1% versus Q1 2025.

• Path to 3% net interest margin by 2027 remains intact, driven by improved loan and deposit mix and asset repricing.

• Medium-term targets: ROA 1.15–1.35%, ROTCE high teens, fee income growth mid-single digits, efficiency ratio mid-to-high 50s.

• BTIG acquisition expected to add $175M-$200M in quarterly fee revenue post-close.