U.S. Bancorp Q2 2026 Earnings Call Transcript

S. Bancorp (NYSE: USB ) reported second-quarter financial results on Thursday. The transcript from the company's second-quarter earnings call has been provided below. APIs provide real-time access to earnings call transcripts and financial data.

Visit to learn more. 1% year-over-year. The company completed the acquisition of BTIG, which contributed $98 million in revenue in its first month, and aims to grow capital markets revenue to more than 10% of total company revenue. 7% year-over-year revenue increase, driven by card issuing and corporate payments, despite a slowdown in merchant processing.

Consumer deposits reached a record high, supported by the Bank Smartly product, and the company plans to increase annual investment in branches from $200 million to $300 million. Management provided guidance for third quarter and full-year 2026, expecting net interest income growth of 4-6% and total fee revenue growth of 12-14%, inclusive of BTIG contributions. 8%, and they plan to sustain strong profitability while investing in future growth. Operational highlights include a focus on expanding the consumer franchise and integrating the Amazon Small Business portfolio, expected to close in mid-August.

Full Transcript OPERATOR Welcome to the US Bancorp second quarter 2026 earnings conference call. Following a review of the results, there will be a formal question and answer session. If you would like to ask a question, please press Star then one on your phone. If you wish to withdraw your question, please press Star then one again.

This call will be recorded and available for replay beginning today at approximately 10:00 am Central Time. I will now turn the conference over to Brian Moni, Director of Investor Relations for US Bancorp. Brian Moni, Director of Investor Relations Thank you, Krista, and good morning everyone. Today I'm joined by our Chairman and Chief Executive Officer Gunjan Kedia and Vice Chair and Chief Financial Officer John Stern.

In a moment, Gunjan and John will be referencing a slide presentation together with their prepared remarks. com. Please note that any forward-looking statements made during today's call are subject to risk and uncertainty. Factors that could materially change our current forward-looking assumptions are described on page 2 of today's earnings presentation, our press release, and reports on file with the SEC.

Following our prepared remarks, Gunjan and John will be happy to take questions that you have. I will now turn the call over to Gunjan. Gunjan Kedia, Chairman and CEO Thank you, Brian, and welcome to our team. Good morning everyone.

35, an increase of approximately 22% year over year. 7 billion highlights the strength of our diversified business mix and improved execution. Results in the quarter reflect strong progress against our three strategic priorities. 1% year over year.

Expense discipline remains a hallmark for us. With 400 basis points of positive operating leverage this quarter, our payments transformation is differentiating us and driving innovative client value propositions, especially for the Gen Z and younger generations. Importantly, we delivered these results while maintaining strong returns, credit performance, and capital levels. John will provide more details on our financial performance in his opening remarks.

Turning to Slide 4, fees rose to 44% of total revenue this quarter. With both scale and quality of our fee mix driving high returns, stable earnings, and enduring relationships, fee growth has steadily accelerated and this is an important priority for us. While fee growth drives higher expenses, productivity initiatives helped improve our efficiency ratio and increased return on average assets. Moving to Slide 5, the successful completion of the BTIG acquisition marks a significant milestone in our strategic build-out of capital markets.

In its first month as part of US Bancorp, BTIG generated approximately $98 million of revenue, marking the strongest monthly revenue performance in BTIG's history and outpacing our earlier expectations from the deal. As integration progresses, we expect to capture more long-term strategic benefits of the combination. Our aim is to grow capital markets to more than 10% of total company revenue over time. On slide 6, our payments franchise remains an important source of diversification and client engagement across the company.

7% growth in the prior year quarter. While merchant processing growth slowed during the quarter, card issuing continued to perform well and corporate payments saw a strong rebound driven by core demand and new business installations. We are increasingly managing these products holistically at the client segment level and investing to be competitive as this pace evolves. Turning to Slide 7, a consumer franchise is a source of strength for the company and an important driver of long-term relationships and lower-cost deposits.

Given the increased interest we have seen in this space recently, we are spotlighting the strategy for the consumer franchise. We serve nearly 13 million consumers through a combination of digital and physical distribution with approximately 18% residing outside of our traditional branch footprint today. In addition, we serve approximately 7 million cus