U.S. Bancorp beats earnings despite revenue miss

Investing.com --On Thursday, U.S. Bancorp (NYSE: USB) reported third quarter adjusted earnings per share of $1.34, exceeding the analyst consensus of $1.32 by $0.02.

Shares of the company were mostly flat, edging up just 0.34% in pre-market trading following the announcement.

Revenue of $7.97 billion fell slightly short of the $7.99 billion estimate. The results represented a 9.8% increase in diluted EPS compared to $1.22 in the third quarter of 2025, while revenue rose 8.7% YoY from $7.33 billion.

Net income attributable to U.S. Bancorp reached $2.20 billion, up 10.0% YoY from $2.00 billion. The revenue growth was driven by a 5.6% increase in net interest income and 14.9% growth in fee revenue compared to the prior year quarter. Net interest margin expanded to 2.84%, up 9 basis points YoY.

"We delivered strong third quarter results. Record net revenue of $8.0 billion drove diluted earnings per share of $1.34, up 10% year-over-year, a return on tangible common equity of 18.5%, and an efficiency ratio of 55.9%," said Gunjan Kedia, Chairman and CEO.

Average total loans increased 8.0% YoY to $409.5 billion, while average total deposits grew 2.9% to $526.6 billion. The company reported a net charge-off ratio of 0.51%, an improvement from 0.56% in the prior year quarter. Capital markets revenue surged 69.3% YoY to $640 million, reflecting the contribution from the BTIG acquisition.

Noninterest expense increased 7.1% YoY to $4.49 billion, primarily due to the BTIG acquisition and higher compensation costs. The provision for credit losses rose 14.5% to $654 million, including $135 million related to a small business credit card portfolio purchase. The company maintained a CET1 capital ratio of 10.8% at September 30, 2026.

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