Access comprehensive financial analyses and make smarter investments - get the Manual of Investments on Amazon!

USB

U.S. Bancorp Q2 Net Income Soars 20%

U.S. Bancorp reported second-quarter net income of $2.177 billion, up 20% from $1.815 billion a year earlier and up 11.9% from $1.950 billion in the first quarter.

Diluted earnings per share rose to $1.35 from $1.11 a year ago and $1.18 in the prior quarter, a gain of 21.6% year over year and 14.4% sequentially.

Total net revenue reached a record $7.712 billion, compared with $7.004 billion in the second quarter of 2025 and $7.288 billion in the first quarter of 2026. That was an increase of 10.1% from a year earlier and 5.8% from the prior quarter.

Net interest income on a taxable-equivalent basis increased to $4.387 billion from $4.080 billion a year ago and $4.291 billion in the first quarter. Noninterest income climbed to $3.325 billion from $2.924 billion a year earlier and $2.997 billion in the prior quarter.

Noninterest expense rose to $4.428 billion from $4.181 billion in the second quarter of 2025 and $4.265 billion in the first quarter of 2026.

Return on average assets improved to 1.26% from 1.08% a year earlier and 1.15% in the first quarter. The efficiency ratio improved to 57.1% from 59.2% a year earlier and 58.2% in the prior quarter.

Net interest margin widened to 2.79% from 2.66% a year earlier and 2.77% in the first quarter.

Average total loans increased to $405.481 billion, up 7.1% from $378.529 billion a year earlier and up 3.0% from $393.560 billion in the first quarter. Commercial loans rose to $157.384 billion from $137.966 billion a year earlier and $149.833 billion in the prior quarter. Commercial real estate loans increased to $51.257 billion from $48.466 billion a year earlier and $49.408 billion in the first quarter. Credit card loans climbed to $38.403 billion from $35.439 billion a year earlier and $37.341 billion in the prior quarter.

Average total deposits were $515.080 billion, up 2.4% from $502.890 billion a year earlier and essentially unchanged from $515.119 billion in the first quarter. Savings deposits reached $388.045 billion, up from $366.857 billion a year earlier and flat from $387.891 billion in the prior quarter. Time deposits fell to $46.424 billion from $56.916 billion a year earlier and $46.600 billion in the prior quarter.

The net charge-off ratio improved to 0.53% from 0.59% a year earlier and 0.56% in the first quarter.

Book value per common share increased to $38.91 from $35.06 a year earlier and $37.93 in the prior quarter. Tangible book value per common share rose to $30.04 from $26.52 a year earlier and $29.56 in the first quarter.

The CET1 capital ratio was 10.8% at June 30, 2026, compared with 10.7% a year earlier and 10.8% in the first quarter.

The company also completed its acquisition of BTIG, which contributed about $98 million in fee revenue and $84 million in noninterest expense during the quarter. Today the company's shares have moved 1.26% to a price of $63.805. 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.

IN FOCUS