U.S. Bancorp Nails Q2 Profits But Stock Dips On Revenue Miss

U.S. Bancorp USB edged past earnings estimates in the second quarter but fell short of revenue expectations, causing its shares to decline in Thursday’s premarket trade.

The company reported second-quarter adjusted earnings per share of $1.11, beating the analyst consensus estimate of $1.07.

Quarterly sales of $7.004 billion (+2% year over year) missed the Street view of $7.052 billion.

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On a GAAP basis, U.S. Bancorp registered revenues of $6.975 billion, missing the analyst consensus estimate of $7.052 billion.

“Year-over-year top-line revenue growth, coupled with our continued expense discipline, resulted in 250 basis points of positive operating leverage, as adjusted, and an efficiency ratio of 59.2% for the quarter,” said the company’s CEO Gunjan Kedia.

Net interest income edged up by 0.7% year over year to $4.051 billion. Non-interest income soared 3.9% to $2.924 billion.

The company reported a net income of $1.815 billion, representing a 13.2% year-over-year increase.

U.S. Bancorp achieved a return on tangible common equity of 18.0%, a return on average assets of 1.08%, and maintained an efficiency ratio of 59.2%.

Average total loans increased 1.0% on a year-over-year basis and decreased 0.1% on a linked quarter basis, reflecting the impact of loan portfolio sales during the second quarter of 2025.

Total average loans and loans held for sale increased 1.7% on a year-over-year basis and 0.7% on a linked-quarter basis.

Provision for credit losses in the quarter under review decreased by 11.8% to $501 million from $568 million in the year-ago period.

“As we look ahead, we remain committed to executing on our strategic priorities and making disciplined progress towards achieving our medium-term financial targets,” Kedia added.

The company had a common equity tier 1 capital ratio of 10.7% as of June 30, 2025.

Outlook: U.S. Bancorp anticipates its full-year 2025 taxable-equivalent revenue will increase by 3%–5% compared to 2024.

For the third quarter, the company expects net interest income to be between $4.1 billion and $4.2 billion.

Price Action: USB shares are trading lower by 3.7% to $43.99 premarket at last check Thursday.

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