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U.S. Bancorp Q2 Net Income Up 19.9%

U.S. Bancorp reported second-quarter net income of $2.177 billion, up 11.9% from $1.945 billion in the first quarter and 19.9% from $1.815 billion a year earlier. Diluted earnings per share rose to $1.35 from $1.18 in the prior quarter and $1.11 in the second quarter of 2025.

Net revenue reached a record $7.712 billion, increasing 5.8% sequentially and 10.1% from $7.004 billion a year ago. Net interest income on a taxable-equivalent basis climbed to $4.387 billion, up 2.2% from the first quarter and 7.5% from the prior-year quarter. Noninterest income rose to $3.325 billion, compared with $2.997 billion in the first quarter and $2.924 billion a year earlier.

Expenses increased to $4.428 billion from $4.265 billion in the first quarter and $4.181 billion a year ago. The provision for credit losses fell to $538 million from $576 million in the first quarter, though it was still above the $501 million booked in the second quarter of 2025.

Return on average assets improved to 1.26% from 1.15% in the first quarter and 1.08% a year earlier. The efficiency ratio improved to 57.1% from 58.2% and 59.2%. Net interest margin widened to 2.79% from 2.77% in the first quarter and 2.66% a year ago.

Average total loans rose to $405.481 billion, up 3.0% from the prior quarter and 7.1% from a year earlier. Average commercial loans increased to $157.384 billion from $149.833 billion in the first quarter and $137.966 billion a year ago. Average commercial real estate loans climbed to $51.257 billion from $49.408 billion and $48.466 billion. Average credit card loans reached $38.403 billion, up from $37.341 billion in the first quarter and $35.439 billion a year earlier.

Average total deposits were $515.080 billion, essentially unchanged from $515.119 billion in the first quarter and up 2.4% from $502.890 billion a year earlier. Noninterest-bearing deposits were $80.611 billion, up from $79.117 billion a year earlier. Savings deposits rose to $388.045 billion from $366.857 billion a year earlier, while time deposits fell to $46.424 billion from $56.916 billion.

Book value per common share increased to $38.91 from $37.93 in the first quarter and $35.06 a year earlier. Tangible book value per common share rose to $30.04 from $29.56 and $26.52. The CET1 capital ratio was 10.8%, unchanged from the first quarter and up from 10.7% a year earlier.

The company completed its BTIG acquisition in the quarter, and said the deal contributed about $98 million of fee revenue and $84 million of noninterest expense. The market has reacted to these announcements by moving the company's shares 0.35% to a price of $63.2301. Check out 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.

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