U.S. Bancorp (NYSE:USB) shares are trading higher in the premarket Thursday.
- USB shares are advancing steadily. Find out why here.
The bank reported third-quarter adjusted earnings per share of $1.22, beating the analyst consensus estimate of $1.13. Quarterly sales of $7.30 billion outpaced the Street View of $7.16 billion.
The company reported net income of $2.001 billion, representing a 16.7% year-over-year increase.
Provision for credit losses rose 2.5% year over year to $571 million, primarily due to loan portfolio growth.
Net interest income rose 2.1% year over year to $4.222 billion. The net interest margin of 2.75 percent in the third quarter was relatively stable compared with 2.74 percent in the year-ago period. Noninterest income rose 14.1% to $3.078 billion.
U.S. Bancorp delivered a solid third quarter, with return on tangible common equity rising to 18.6% and return on average assets improving to 1.17% versus the year-ago period. The average deposits stood at $511 billion (+0.6% year over year) in the third quarter.
Operating efficiency strengthened as the efficiency ratio improved to 57.2% and the bank generated 530 bps of positive operating leverage year over year (ex-securities gains/losses).
“Solid net interest income growth and margin expansion, as well as continued momentum across our fee businesses and prudent expense management supported double-digit net income growth, on both a linked quarter and year-over-year basis,” said Gunjan Kedia, CEO, U.S. Bancorp.
Core profitability also inched higher, with net interest margin at 2.75%, up nine bps sequentially, while noninterest expense remained relatively stable from a year ago.
Balance-sheet trends were steady, with average total loans up 1.4% year over year. Capital remained robust, with a Common Equity Tier 1 (CET1) ratio of 10.9% as of September 30, 2025.
Nonperforming assets were $1.654 billion at September 30, compared with $1,680 million at June 30.
Q4 Outlook
The company expects quarterly net interest income to be relatively stable compared to the third quarter.
U.S. Bancorp expects $3 billion as the total fee revenue for the fourth quarter. It anticipates the total noninterest expense to rise within the band of 1% to 5% compared to the third quarter of 2025.
U.S. Bancorp aims to deepen consumer deposit relationships by offering interconnected, bundled products on its Smartly platform, while optimizing growth and cost of funds through advanced pricing analytics.
Price Action: U.S. Bancorp shares were up 1.70% at $47.24 during premarket trading on Thursday, according to Benzinga Pro data.
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