U.S. Bancorp Q1 2025 – $1.7B Net Income & $1.03 EPS

By Tamara Parker • Wednesday, April 16 15:24 • Permanent Link

U.S. Bancorp reported a net income of $1,709 million and diluted earnings per common share of $1.03 for the first quarter of 2025. This represents an increase of $390 million in net income and a $0.25 increase in diluted earnings per share compared to the first quarter of 2024.

The return on tangible common equity was reported at 17.5%, a notable increase from the 15.1% reported in the first quarter of 2024. Additionally, the return on average assets increased to 1.04% from 0.81% in the first quarter of 2024.

The company achieved positive operating leverage of 270 basis points on a year-over-year basis, with net revenue reaching $6,958 million, a 3.6% increase compared to the previous year. Notably, net interest income on a taxable-equivalent basis increased by 2.7% year-over-year to $4,122 million.

Furthermore, the net interest margin saw a 2 basis point increase on a year-over-year basis, reaching 2.72%. The efficiency ratio also improved to 60.8% from 66.4% in the first quarter of 2024, signifying enhanced operational efficiency.

In terms of the balance sheet, the average total loans increased by 2.1% year-over-year, reaching $379,028 million. The CET1 capital ratio also improved to 10.8% at the end of the first quarter of 2025 compared to 10.0% in the first quarter of 2024.

The company's CEO, Gunjan Kedia, expressed confidence in the bank's ability to deliver strong and consistent financial results, highlighting the strong asset quality and capital levels.

In addition to its financial performance, U.S. Bancorp expanded its collaboration with State Farm, making U.S. Bank personal loans available to State Farm customers. The bank also introduced a new spend management platform for business owners and launched the U.S. Bank Shield™ Visa® card, offering a 0% intro APR for 24 billing cycles.

The financial results and strategic initiatives reflect U.S. Bancorp's efforts to drive growth, improve operational efficiency, and expand its product offerings to better serve its customers and enhance shareholder value. The market has reacted to these announcements by moving the company's shares -2.0% to a price of $37.45. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.