U.S. Bancorp

Reported third-quarter revenue was a record approximately $8 billion, up 8.7% year over year, and diluted EPS was $1.34, up approximately 10% year over year (16% excluding the reserve build). Net interest income on an FTE basis rose 5.6% YoY and 2.3% sequentially; net interest margin expanded 5 bps to 2.84%. Total fee income increased 14.9% YoY, capital markets revenue grew 69% YoY, and BTIG contributed $226 million of fee revenue. Expenses increased 7.1% YoY, loans grew 1.0% sequentially, deposits grew 2.2% sequentially, CET1 was 10.8%, and net charge-offs were 51 bps. For Q4 2026, management expects NII growth of 6% to 7% YoY, fee revenue growth of 13% to 14%, and expense growth of about 8% (or closer to 4% excluding BTIG). For full-year 2026, management now expects total net revenue growth of 8% to 9% (6% to 7% excluding BTIG) and positive operating leverage of about 300 bps (about 400 bps excluding BTIG).

Gunjan Kedia framed the quarter as evidence that the bank is executing well across its three strategic priorities: revenue growth, productivity, and payments transformation. She emphasized that fees, capital markets, small business, corporate payments, and the branch/client-center strategy are all part of a more interconnected model that deepens relationships and supports long-term growth. Her tone was confident and constructive, especially on the bank’s ability to grow both revenue and productivity at the same time through digital investment and disciplined execution.

John C. Stern highlighted broad operating strength and reiterated that results stayed within all medium-term target ranges. He pointed to 7.1% expense growth, 440 bps of positive operating leverage excluding BTIG, a stable 10.8% CET1 ratio, and healthy credit with nonperforming assets down 1.6% linked quarter and net charge-offs at 51 bps. He also said capital should build from here, with share repurchases likely to resume over the next quarter or two, while noting the quarter absorbed strong loan growth, the Amazon small business partnership, and rate/AOCI pressure.

Analysts pressed management on NII drivers, loan demand, deposit pricing, buyback timing, and how the business mix is evolving. Management said loan pipelines remain strong, deposit growth is healthy in consumer and small business, and the NIM should rise by a similar amount in Q4, supported by asset/funding mix and about $10 billion per quarter of fixed-rate assets repricing at roughly a 125 bps improvement. On buybacks, management said the timing depends mainly on loan growth, rates, and regulatory updates, but they expect to restart repurchases within the next quarter or two while keeping a 70% to 75% payout posture.