U.S. Bancorp (USB) Q3 2025 Financial Results Summary
U.S. Bancorp released its third quarter 2025 financial results on October 16, 2025. The summary of the results illustrates strong growth across various financial metrics, underscoring continued operational strength and strategic initiatives.
Financial Highlights
- Net Revenue:
- Record net revenue of $7,329 million, representing an increase of 6.8% compared to Q3 2024.
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Fees increased by 9.5% year-over-year.
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Net Income:
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Net income attributable to U.S. Bancorp reached $2,001 million, marking a 16.7% increase year-over-year.
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Earnings Per Share:
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Diluted earnings per common share were $1.22, up 18.4% from $1.03 in Q3 2024.
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Profitability Metrics:
- Return on tangible common equity was 18.6%, up from 17.9% a year ago.
- Return on average assets improved to 1.17% compared with 1.03% in Q3 2024.
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Efficiency ratio improved to 57.2%, compared to 60.2% in Q3 2024.
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Operating Leverage:
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Positive operating leverage of 530 basis points on a year-over-year basis, excluding net securities gains/losses.
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Interest Margin:
- Net interest margin of 2.75%, a slight increase of 1 basis point from Q3 2024.
Income Statement Details
- Net Interest Income:
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Increased to $4,251 million, up 2.0% year-over-year and 4.2% from the prior quarter.
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Noninterest Income:
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Rose to $3,078 million, reflecting a 14.1% increase compared to Q3 2024.
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Noninterest Expense:
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Stable at $4,197 million, a small decrease of 0.2% year-over-year.
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Provision for Credit Losses:
- Increased to $571 million, compared to $557 million in Q3 2024, reflecting portfolio growth.
Balance Sheet Highlights
- Total Loans:
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Average total loans grew 1.4% year-over-year, reflecting an increase mainly in commercial loans.
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Total Deposits:
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Average total deposits rose by 0.6% compared to Q3 2024.
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CET1 Capital Ratio:
- The Common Equity Tier 1 (CET1) capital ratio was 10.9% as of September 30, 2025, up from 10.5% a year ago.
Dividends and Share Repurchase
- Quarterly Dividend:
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U.S. Bancorp declared a dividend of $0.52 per common share, compared to $0.50 in the prior quarter and same quarter last year.
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Share Repurchase:
- The company repurchased 2 million shares in the quarter, continuing its ongoing share repurchase program.
Business Developments
- Custody Services Partnership:
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Selected to provide custody services for Anchorage Digital Bank, emphasizing the alignment of traditional finance with digital assets.
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Outlook Revision:
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Moody’s Ratings revisited U.S. Bancorp’s outlook, changing it from negative to stable, reaffirming the bank’s strong diversification and profitability.
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Small Business Offerings:
- Launched integrated products for accounts payable and payroll, enhancing service offerings for small businesses.
Conclusion
U.S. Bancorp’s Q3 2025 results reflect robust financial health and strategic positioning for continued growth. The bank reported notable improvements across key metrics, a stable dividend policy, and proactive steps to innovate its service offerings in a competitive banking landscape.
CONSOLIDATED STATEMENT OF INCOME
($ in millions, except per share data)
| Three Months Ended | Nine Months Ended | |
|---|---|---|
| September 30, 2025 | September 30, 2025 | |
| September 30, 2024 | September 30, 2024 | |
| Interest Income | ||
| Loans | $5,688 | $16,769 |
| Loans held for sale | 35 | 122 |
| Investment securities | 1,392 | 4,055 |
| Other interest income | 812 | 2,101 |
| Total interest income | 7,927 | 23,047 |
| Interest Expense | ||
| Deposits | 2,648 | 7,700 |
| Short-term borrowings | 328 | 868 |
| Long-term debt | 729 | 2,114 |
| Total interest expense | 3,705 | 10,682 |
| Net interest income | 4,222 | 12,365 |
| Provision for credit losses | 571 | 1,609 |
| Net interest income after provision for credit losses | 3,651 | 10,756 |
| Noninterest Income | ||
| Card revenue | 440 | 1,280 |
| Corporate payment products revenue | 195 | 576 |
| Merchant processing services | 463 | 1,352 |
| Trust and investment management fees | 730 | 2,113 |
| Service charges | 333 | 984 |
| Capital markets revenue | 434 | 1,206 |
| Mortgage banking revenue | 180 | 515 |
| Investment products fees | 97 | 274 |
| Securities gains (losses), net | -7 | -64 |
| Other | 213 | 602 |
| Total noninterest income | 3,078 | 8,838 |
| Noninterest Expense | ||
| Compensation and employee benefits | 2,561 | 7,798 |
| Net occupancy and equipment | 300 | 907 |
| Professional services | 117 | 324 |
| Marketing and business development | 175 | 518 |
| Technology and communications | 560 | 1,627 |
| Other intangibles | 125 | 372 |
| Merger and integration charges | — | — |
| Other | 359 | 1,064 |
| Total noninterest expense | 4,197 | 12,610 |
| Income before income taxes | 2,532 | 6,984 |
| Applicable income taxes | 524 | 1,439 |
| Net income | 2,008 | 5,545 |
| Net (income) loss attributable to noncontrolling interests | -7 | -20 |
| Net income attributable to U.S. Bancorp | $2,001 | $5,525 |
| Net income applicable to U.S. Bancorp common shareholders | $1,893 | $5,229 |
| Earnings per common share | $1.22 | $3.36 |
| Diluted earnings per common share | $1.22 | $3.35 |
| Dividends declared per common share | $.52 | $1.52 |
| Average common shares outstanding | 1,557 | 1,558 |
| Average diluted common shares outstanding | 1,557 | 1,559 |
CONSOLIDATED ENDING BALANCE SHEET
($ in millions)
| Assets | September 30, 2025 | December 31, 2024 | September 30, 2024 |
|---|---|---|---|
| Cash and due from banks | $66,637 | $56,502 | $73,562 |
| Investment securities | |||
| Held-to-maturity | 76,931 | 78,634 | 80,025 |
| Available-for-sale | 89,065 | 85,992 | 81,704 |
| Loans held for sale | 2,490 | 2,573 | 3,211 |
| Loans | |||
| Commercial | 148,414 | 139,484 | 133,638 |
| Commercial real estate | 48,244 | 48,859 | 50,619 |
| Residential mortgages | 115,046 | 118,813 | 118,034 |
| Credit card | 30,594 | 30,350 | 29,037 |
| Other retail | 40,219 | 42,326 | 42,836 |
| Total loans | 382,517 | 379,832 | 374,164 |
| Less allowance for loan losses | -7,557 | -7,583 | -7,560 |
| Net loans | 374,960 | 372,249 | 366,604 |
| Premises and equipment | 3,695 | 3,565 | 3,585 |
| Goodwill | 12,634 | 12,536 | 12,573 |
| Other intangible assets | 5,152 | 5,547 | 5,488 |
| Other assets | 63,793 | 60,720 | 59,717 |
| Total assets | $695,357 | $678,318 | $686,469 |
| Liabilities and Shareholders’ Equity | |||
| Deposits | |||
| Noninterest-bearing | $91,550 | $84,158 | $86,838 |
| Interest-bearing | 434,599 | 434,151 | 434,293 |
| Total deposits | 526,149 | 518,309 | 521,131 |
| Short-term borrowings | 15,449 | 15,518 | 23,708 |
| Long-term debt | 62,535 | 58,002 | 54,839 |
| Other liabilities | 27,426 | 27,449 | 27,470 |
| Total liabilities | 631,559 | 619,278 | 627,148 |
| Shareholders’ equity | |||
| Preferred stock | 6,808 | 6,808 | 6,808 |
| Common stock | 21 | 21 | 21 |
| Capital surplus | 8,745 | 8,715 | 8,729 |
| Retained earnings | 79,742 | 76,863 | 76,057 |
| Less treasury stock | -24,228 | -24,065 | -24,010 |
| Accumulated other comprehensive income (loss) | -7,748 | -9,764 | -8,746 |
| Total U.S. Bancorp shareholders’ equity | 63,340 | 58,578 | 58,859 |
| Noncontrolling interests | 458 | 462 | 462 |
| Total equity | 63,798 | 59,040 | 59,321 |
| Total liabilities and equity | $695,357 | $678,318 | $686,469 |
