U.S. Bancorp

Second-quarter EPS was $1.35, up approximately 22% year over year. Record net revenue was $7.7 billion, up 10.1% year over year; total fee income rose 13.2% year over year, or 9.9% excluding BTIG; and fully taxable equivalent net interest income was $4.4 billion, up 7.5% year over year. NIM improved 2 basis points sequentially to 2.79%, ROA was 1.26%, ROTCE was 18.7%, the efficiency ratio was 57.1%, average loans were $405 billion, up 7.1% year over year, and average deposits were up 2.4% year over year. Credit quality improved, with non-performing assets to loans and other real estate at 0.33% and the net charge-off ratio at 0.53%; allowance for credit losses stayed at $8 billion, or 1.94% of period loans. CET1 was 10.8% (9.4% including AOCI), tangible book value per common share was above $30, and management said tangible book value increased more than 13% year over year. For third quarter 2026, management expects FTE net interest income growth of 4%-6% year over year, total fee revenue growth of 12%-14% year over year, and non-interest expense growth of about 8% year over year, with core expense growth of about 3.5% excluding BTIG. For full-year 2026, it raised total net revenue growth guidance to 7%-9% year over year, or 5%-7% excluding BTIG, and expects about 200 basis points of positive operating leverage this year, or more than 300 basis points excluding BTIG.

Gunjan Kedia framed the quarter as evidence that the bank’s three priorities are working: fee growth, payments transformation, and consumer franchise expansion. She emphasized that fees now make up 44% of total revenue, called out BTIG as a milestone in the capital markets build-out, and said the company aims to make capital markets more than 10% of revenue over time. Her tone was confident and strategic, with repeated focus on durable relationships, multi-product consumer engagement, and continued investment in branches and product depth.

John Stern highlighted broad-based operating strength: EPS of $1.35, revenue of $7.7 billion, fee income up 13.2% year over year, NII up 7.5%, and an efficiency ratio of 57.1%. He noted expenses were about $4.4 billion and included roughly $84 million of BTIG-related expense, while credit metrics improved and CET1 ended at 10.8%. On guidance, he raised full-year revenue growth to 7%-9% and said the bank expects roughly 200 basis points of positive operating leverage in 2026, with BTIG and Amazon-related items included in the outlook; he also said about $60 million of BTIG integration costs are expected this year, with a tail into early 2027.

Analysts focused on the higher revenue guide, the path to positive operating leverage, BTIG run-rate assumptions, and how much of the fee strength is sustainable versus acquisition-driven. Management said fee growth is being driven by stronger corporate payments, card, trust and investment management, and capital markets activity, and that full-year fees should grow in the low teens with a little over four points coming from BTIG. They also clarified BTIG contribution assumptions of about $200 million per quarter in the back half of the year, with roughly $60 million of integration costs outside the 15% contribution-margin framework, and said the Amazon small-business deal is included in guidance with roughly $75 million-$85 million of revenue per quarter once fully run-rate. On deposits, capital, and branching, management said the strategy remains organic, with buybacks expected to ramp as CET1 approaches about 10%, and branch investment will focus on densification in about 10 markets rather than a large new footprint expansion.