US BANCORP \DE\ (USB) Company Report

Delivered $1.26 EPS in Q4, up 18% YoY (adjusted), and record net revenues of $7.4 B for the quarter and $28.7 B for FY 2025; achieved positive operating leverage of 440 bps in Q4 and 370 bps for the full year.
Net interest income of $4.3 B (+3.3% YoY) with a net interest margin of 2.77%; fee income of $3.05 B (+7.6% YoY); non‐interest expense of $4.2 B.
Balance sheet and capital: total deposits $515 B, average loans $384 B; Common Equity Tier 1 ratio 10.8% (9.3% including AOCI); allowance for credit losses $7.9 B (2.03% of period-end loans).
2026 guidance: 4–6% net revenue growth, >200 bps positive operating leverage; Q1 guidance of 3–4% NII growth, 5–6% fee revenue growth, and ~1% non-interest expense growth.
Closing on BTIG acquisition expected in 2026 Q2, projected to add $175–200 M of quarterly fee revenue.

3 days ago

Transcript

U.S. Bancorp reports Q4 2025 results

USB

Earnings

Guidance Update

M&A

U.S. Bancorp reported EPS of $1.26, up ~18% YoY on an adjusted basis, and delivered record net revenues of $7.4 billion in Q4 and $28.7 billion for FY 2025.
Net interest income grew 3.3% YoY and fee revenue increased 7.6% YoY to $3.05 billion, with fee income making up 42% of net revenues and rising 6.7% for the full year.
Profitability and efficiency improved: ROTCE was 18.4%, ROA 1.19%, and efficiency ratio 57.4%; asset quality strengthened with NPAs at 0.41% and net charge-off ratio at 0.54%.
Balance sheet highlights include $515 billion in average deposits, $384 billion in average loans, and a net interest margin of 2.77%, supporting NII of $4.3 billion in Q4.
For 2026, the bank guides net revenue growth of 4–6%, positive operating leverage of ≥200 bps, and Q1 targets of NII +3–4%, fee revenue +5–6%, and non-interest expense +1%; acquisition of BTIG to add $175–200 million in quarterly fee revenue.

3 days ago

Transcript

U.S. Bank reports Q4 2025 results

USB

Earnings

Guidance Update

M&A

Q4 EPS $1.26 (+18% YoY), record net revenue $7.4 B (Q4) and $28.7 B (FY 2025); fee revenue +7.6% YoY; positive operating leverage of 440 bp in Q4 and 370 bp for the year.
Q4 net interest income $4.3 B (+1.4% linked quarter), NIM 2.77%; total fee income $3.05 B (+7.6% YoY); non-interest expense $4.2 B (+0.7%); efficiency ratio 57.4%.
Average deposits $515 B (+0.7% linked quarter); average loans $384 B (+1.4% linked quarter), with C&I +10.1% YoY and credit cards +5.7%; nonperforming assets ratio 0.41%; CET1 ratio 10.8% (9.3% incl. AOCI).
2026 guidance: net revenue growth 4–6%, >200 bp operating leverage; Q1 2026: NII +3–4%, fees +5–6%, expenses +1%; excludes BTIG acquisition (adds $175–200 M quarterly fees).
Strategy: sustained expense discipline with flat expenses over nine quarters; investing in tech, sales & marketing; closing BTIG deal to enhance capital markets franchise.

3 days ago

Transcript

U.S. Bancorp reports record Q4 results and to acquire BTIG

USB

Earnings

M&A

U.S. Bancorp posted $7.37 billion in Q4 net revenue and $1.26 adjusted diluted EPS, up about 18% year-over-year.
Quarterly net income rose to roughly $2.05 billion, while full-year net revenue and net income reached $28.66 billion and $7.57 billion, respectively.
Net interest margin expanded to about 2.77%, return on tangible common equity hit 18.4%, and the CET1 capital ratio stood near 10.8%.
The company signed a definitive agreement to acquire BTIG, bolstering its capital markets and institutional brokerage capabilities.

3 days ago

Morningstar

U.S. Bancorp reports Q4 2025 results

USB

Earnings

U.S. Bancorp posted record net revenue of $7,365 million in Q4 2025, up 5.1% year-over-year, driven by fee revenue and net interest income growth.
Net income attributable to U.S. Bancorp was $2,045 million, a 23.0% increase YoY, with diluted EPS of $1.26, up 18% YoY.
Profitability metrics improved, with return on tangible common equity of 18.4%, return on average assets of 1.19%, and an efficiency ratio of 57.4%.
Credit and capital positions remain strong: net charge-off ratio improved to 0.54% and CET1 capital ratio was 10.8% at December 31, 2025.

3 days ago

8-K

U.S. Bancorp to acquire BTIG for up to $1 billion

USB

M&A

U.S. Bancorp agreed to acquire broker-dealer BTIG in a $1 billion transaction, with a $725 million target purchase price at closing (split into $362.5 million cash and 6.6 million shares) plus up to $275 million in earnouts, expected to close in Q2 2026.
Deal is designed to bolster U.S. Bancorp’s capital-markets capabilities and fill product gaps for corporate and institutional clients.
BTIG, founded in 2005, has over 700 employees across about 20 cities and has advised on more than 1,275 investment-banking transactions since 2015.
U.S. Bancorp shares dipped about 0.8% in pre-market trading following the announcement.

Jan 13, 2026, 1:14 PM

Bloomberg

U.S. Bancorp to acquire BTIG in $1 billion bolt-on deal

USB

M&A

U.S. Bancorp (NYSE: USB) entered into a definitive agreement to acquire BTIG, LLC for up to $1 billion, comprising $725 million at closing (including $362.5 million in cash and 6,600,594 shares of USB) and up to $275 million in contingent cash over three years.
The acquisition adds institutional equity sales & trading, equity capital markets, electronic trading and M&A advisory capabilities to USB’s capital markets business, which generated approximately $1.4 billion in revenue over the prior 12 months and achieved a 21 percent CAGR from 2021 to 2024.
The transaction is expected to close in Q2 2026 subject to regulatory approvals, with negligible 2026 EPS impact, a 12 bps reduction in CET1 ratio at closing and no changes to near-term capital return plans.
Post-closing, BTIG’s leadership will integrate with USB, with BTIG CEO Anton LeRoy reporting to USB’s Vice Chair Stephen Philipson and co-founder Steven Starker continuing in his client engagement role.

Jan 13, 2026, 1:00 PM

8-K

U.S. Bancorp to Acquire BTIG

USB

M&A

U.S. Bancorp will acquire BTIG, a specialist in institutional equity sales & trading, equity capital markets, electronic trading and M&A advisory, to bolster its markets-based product offerings and support for institutional clients.
The definitive agreement signed January 12, 2026, calls for up to $1 billion in total consideration, including $725 million at closing (comprising $362.5 million cash and 6,600,594 shares) plus up to $275 million earnout; the deal is expected to close in Q2 2026 with negligible EPS impact and a ~12 bps CET1 ratio reduction.
U.S. Bancorp’s capital markets business generated $1.4 billion in revenue over the 12 months ended September 30, 2025, and achieved a 21% CAGR from 2021-2024.
BTIG operates in 20 cities across the U.S., Europe, Asia and Australia with over 700 employees, ranks among the top 10 U.S. brokers for high-touch equity volume, and has executed more than 1,275 investment banking transactions since 2015.

Jan 13, 2026, 1:00 PM

Press Release

U.S. Bancorp lowers prime lending rate to 6.75%

USB

Prime lending rate reduced from 7.00% to 6.75%, effective December 11, 2025
Holds $695 billion in assets and employs approximately 70,000 staff as of September 30, 2025
Named among the 2025 World’s Most Ethical Companies and Fortune’s most admired superregional banks

Dec 10, 2025, 10:30 PM

Press Release

U.S. Bancorp outlines strategy and outlook at GS U.S. Financial Services Conference

USB

New Projects/Investments

Revenue Acceleration/Inflection

CEO Gunjan Kedia reaffirmed three strategic priorities—expense discipline (eight consecutive quarters of flat expenses), organic growth (mid-single-digit fee targets and high-return loan focus), and payments transformation—with solid early progress on each front.
CFO John Stern expects net interest income to remain stable from Q3 to Q4 with a bias for upside, fee revenue around $3 billion also with upside risk, expenses rising 1–1.5% Q/Q, and at least 200 bps of positive operating leverage in Q4.
The Payments business is being reshaped via embedded payments in five verticals, a shift toward direct distribution through Elavon, and expanded card-issuing products and partnerships (including Elan), aiming for mid-single-digit merchant growth and accelerating card revenue in 2026–27.
U.S. Bancorp is targeting a 3.0% net interest margin by 2027, driven by deposit mix shifts toward lower-cost operational balances, higher-yield loan mix, investment-portfolio optimization, and a steeper yield curve.