U.S. Bancorp Reports Record Revenue, Raises Outlook

U.S.

Bancorp (NYSE: USB ) stock traded higher Thursday after the bank reported second-quarter 2026 results that beat Wall Street estimates on both earnings and revenue and raised its full-year revenue outlook.

Adjusted earnings came in at $1.35 per share, topping the analyst consensus estimate of $1.28.

Revenue rose to $7.69 billion, ahead of the $7.58 billion consensus estimate.

Net income attributable to U.S.

Bancorp increased 20% year over year to $2.18 billion, while earnings per share rose 22% from $1.11 a year earlier.

U.S.

Bancorp Posts Record Revenue, Wider Margin Total net revenue reached a record $7.71 billion, up 10.1%, while taxable-equivalent net interest income rose 7.5% to $4.39 billion.

Net interest margin expanded to 2.79% from 2.66%.

Return on average assets improved to 1.26%, while return on tangible common equity reached 18.7%.

The efficiency ratio improved to 57.1% from 59.2%, helping generate 400 basis points of positive operating leverage.

Loans And Deposits Grow Average loans increased 7.1% to $405.48 billion.

Commercial loans rose 14.1%, commercial real estate loans grew 5.8%, and credit card balances increased 8.4%.

Average deposits rose 2.4% to $515.08 billion and were broadly stable on a sequential basis.

Consumer deposits reached a record for the third consecutive quarter.

Savings balances climbed 26.7%, while time deposits fell 18.4%.

Fee Revenue Strengthens Noninterest income rose 13.7% to $3.33 billion, while total fee revenue increased 13.2% to $3.37 billion.

Excluding BTIG, fee revenue grew 9.9%.

Capital markets revenue surged 62.5% to $512 million.

Trust and investment management fees rose 11.7%, while lending and deposit-related fees increased 11.2%.

Payment Services revenue grew 5.7% to about $1.8 billion, though merchant processing remained soft in Europe.

BTIG Lifts Revenue And Costs Noninterest expense increased 5.9% to $4.43 billion.

Excluding BTIG, expenses rose 3.9%, reflecting technology, marketing and compensation investments.

BTIG contributed about $98 million in June fee revenue and $84 million in expenses, producing an approximately 14% pretax margin.

Capital markets currently represent about 7% of company revenue and 15% of fee revenue.

Management targets more than 10% of total revenue over time.

Credit Quality Improves The provision for credit losses rose 7.4% to $538 million, mainly due to loan growth, but fell 6.6% sequentially.

The net charge-off ratio improved to 0.53% from 0.59%.

Nonperforming assets declined 19.9% to $1.35 billion, while the nonperforming asset ratio improved to 0.33%.

Capital Remains Strong The CET1 capital ratio was 10.8%, and the total risk-based capital ratio reached 14.4%.

Book value per share rose 11% to $38.91, while tangible book value per share increased 13.3% to $30.04.

U.S.

Bancorp returned $1.02 billion through dividends and share repurchases and declared a quarterly dividend of 52 cents per share.

Raises Outlook U.S.

Bancorp raised its fiscal 2026 revenue guidance to $30.71 billion-$31.28 billion from $29.85 billion-$30.42 billion.

The updated range compares with the $30.56 billion analyst estimate.