U.S. Bancorp stress capital buffer stays at 2.6% through 2027, plans to raise dividend 3.8%

U.S. Bancorp (NYSE: USB) has responded to the Federal Reserve's Dodd-Frank Act Stress Test results, confirming that its stress capital buffer (SCB) will remain at 2.6% until October 1, 2027.

The Federal Reserve Board voted in February 2026 to maintain current stress test-related capital buffer requirements until 2027 to allow time for public feedback on supervisory models. As a result, U.S. Bancorp's SCB will not change, even though the current stress test results would have placed the company at the 2.5% floor under Federal Reserve rules.

Combined with the Basel III Common Equity Tier 1 (CET1) minimum of 4.5%, the company is required to maintain a CET1 ratio at or above 7.1%. As of March 31, 2026, U.S. Bancorp's CET1 capital to risk-weighted assets ratio under the Basel III standardized approach stood at 10.8%.

The Minneapolis-based bank said it plans to raise its quarterly common stock dividend by 3.8%, from $0.52 to $0.54 per share, subject to board approval, effective in the third quarter of 2026. As of March 31, 2026, U.S. Bancorp had $4.1 billion of remaining capacity under its existing $5 billion share repurchase program.

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