Financial Data and Key Metrics Changes - The company reported earnings per share of $1.22, an increase of 18.4% year over year [4] - Net revenue reached $7.3 billion, marking a quarterly record, driven by strong momentum in fee businesses and improved spread income [4][12] - The return on average assets was 1.17%, and the net interest margin was 2.75% [4][14] - The tangible book value per share increased by 12.7% year over year [13] - The efficiency ratio improved to 57.2% [14] Business Line Data and Key Metrics Changes - Fee revenue grew by 9.5% year over year, with significant contributions from payments, institutional, and consumer businesses [6][17] - The Impact Finance business, bolstered by the Union Bank acquisition, grew at a 17% CAGR from 2021 to 2024 [7] - Consumer deposits now represent over 52% of total average deposits, up nearly two points from 2023 [9] Market Data and Key Metrics Changes - Ending assets were $695 billion, supported by elevated deposit flows and robust client activity [13] - Average loans totaled $379 billion, with a year-over-year growth rate of 2.8% [15] - The investment portfolio had an average yield of 3.26%, reflecting strategic actions taken in the previous quarter [16] Company Strategy and Development Direction - The company is focused on organic growth through interconnected solutions, maintaining expense discipline, and executing payments transformation [5] - There is a strong emphasis on improving fee income diversification and enhancing the consumer deposit base [6][8] - The company aims to achieve net interest margin expansion, targeting 3% by 2027 [30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving positive operating leverage and maintaining strong credit quality despite macroeconomic uncertainties [12][19] - The outlook for net interest income is stable, with potential upside due to favorable repricing and mix [20][25] - The company is committed to organic growth and improving its fee mix, with a focus on enhancing client relationships [40][42] Other Important Information - The company is preparing for stablecoin activities in both capital markets and payment rails, indicating a proactive approach to emerging financial technologies [96] - The tax benefit from impact finance is expected to remain around 3%, supporting the company's overall tax strategy [120][122] Q&A Session Summary Question: Outlook for net interest margin trend in the fourth quarter - Management indicated that while there are favorable items supporting net interest margin, there are also seasonal dynamics affecting credit card yields [25][26] Question: Drivers for net interest margin expansion next year - Management sees a clear path to achieving a 3% net interest margin by 2027, driven by fixed asset repricing and a favorable loan mix [29][30] Question: Confidence in positive operating leverage exceeding 200 basis points - Management expressed confidence in achieving over 200 basis points of operating leverage, supported by strong revenue growth and prudent expense management [34][36] Question: Dynamics of credit card favorability and risks - Management noted that credit card yield dynamics are seasonal, with expectations for a reversal in the fourth quarter [80][85] Question: Impact finance growth and its implications for tax rate - Management expects continued growth in impact finance, which will maintain a favorable tax rate benefit around 3% [120][122]

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Core Insights - U.S. Bancorp reported a third-quarter net income of $2 billion, reflecting a 17% increase compared to the same period in 2024, driven by a surge in fee income and stable credit quality [1][10]. Financial Performance - The third-quarter revenue reached $7.3 billion, marking a 7% increase year-over-year, primarily due to a significant rise in noninterest income, which increased by 14% to $3.1 billion [2]. - Mortgage banking revenue rose by 16% to $180 million, while capital markets income increased by 9% to $434 million, aligning with trends observed in other major banks [3]. - U.S. Bancorp's noninterest expense for the third quarter was $4.2 billion, consistent with the previous year's figure [3]. Credit Quality - Credit quality remained robust, with net charge-offs decreasing by 5% to $536 million and nonperforming loans falling by 10% to $1.65 billion, reflecting improvements consistent with other regional and money center banks [4]. Strategic Initiatives - The company is enhancing its position in the digital assets space, having been selected by Anchorage Digital Bank as a custodian for its new stablecoin platform, and is establishing a digital assets and money movement group to focus on cryptocurrency custody and asset tokenization [5][6]. Earnings Metrics - U.S. Bancorp's earnings per share for the third quarter was $1.22, surpassing analysts' expectations of $1.11, with a return on assets of 1.17% and a return on tangible common equity of 18.6%, both exceeding medium-term targets [7]. - The company anticipates fourth-quarter results to be in line with third-quarter performance, projecting net interest income around $4.25 billion and fee income approximately $3 billion [8]. Deposits and Loans - As of September 30, U.S. Bancorp's total deposits amounted to $526 billion, reflecting a 1% increase from the previous year, while loans increased by 1.4% to $382.5 billion [9].

Financial Performance - U S Bancorp's earnings per share grew by 18 4% compared to 3Q24[6] - Net interest income reached $4 25 billion in 3Q25[6] - Fee revenue increased by 9 5% year-over-year in 3Q25[6] - The efficiency ratio improved to 57 2%[7] - Return on tangible common equity was 18 6%[8] - Return on average assets was 1 17%[8] - Net interest margin increased by 9 basis points compared to 2Q25 reaching 2 75%[8] Revenue and Growth Strategies - Fee income represents approximately 42% of U S Bancorp's total net revenue[9] - Adjusted fee revenue growth was $463 million or +5 2% year-over-year[10] - Impact finance revenue increased to $251 million for the first nine months of 2025, demonstrating a 17% compound annual growth rate (CAGR)[15] Balance Sheet and Credit Quality - The CET1 capital ratio strengthened to 10 9%[8] - The net charge-off ratio improved to 0 56%[8] - Total assets reached $695 4 billion[33] - Total loans amounted to $382 5 billion[33] - Total deposits reached $526 1 billion[33]

Core Insights - U.S. Bancorp (USB) reported quarterly earnings of $1.22 per share, exceeding the Zacks Consensus Estimate of $1.11 per share, and up from $1.03 per share a year ago, representing an earnings surprise of +9.91% [1] - The company posted revenues of $7.33 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.42%, compared to year-ago revenues of $6.83 billion [2] - U.S. Bancorp has consistently surpassed consensus EPS estimates over the last four quarters, achieving this four times [2] Financial Performance - The earnings surprise of +9.91% indicates strong performance relative to expectations [1] - Revenue growth of approximately 7.34% year-over-year from $6.83 billion to $7.33 billion highlights the company's ability to increase sales [2] - The company has topped consensus revenue estimates two times over the last four quarters, indicating a positive trend in revenue performance [2] Market Position - U.S. Bancorp shares have underperformed the market, losing about 2.9% since the beginning of the year, while the S&P 500 has gained 13.4% [3] - The current Zacks Rank for U.S. Bancorp is 3 (Hold), suggesting that the stock is expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $1.12 on revenues of $7.21 billion, and for the current fiscal year, it is $4.38 on revenues of $28.34 billion [7] - The outlook for the industry, particularly the Banks - Major Regional sector, is favorable, ranking in the top 21% of over 250 Zacks industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which could impact U.S. Bancorp's stock performance [5]

Core Insights - U.S. Bancorp reported an increase in earnings for the latest quarter, driven by record revenue and loan growth [1] Financial Performance - The company achieved record revenue, contributing significantly to the rise in earnings [1] - Loan growth was a key factor in the improved financial performance [1]

Core Insights - The new CEO Navratil has implemented significant organizational changes shortly after his appointment, which occurred less than a month ago [1] Group 1 - The appointment of Navratil marks a pivotal moment for the company, indicating a shift in leadership strategy [1] - Massive organizational changes have been initiated under Navratil's leadership, suggesting a potential transformation in company operations and culture [1]

Group 1 - The article does not provide any specific content related to a company or industry [1]

格隆汇10月16日｜美国合众银行：三季度每股收益1.22美元，预估1.12美元；净利息收入为42.5亿美 元，预估41.7亿美元。 ...

[Consolidated Financial Schedules](index=1&type=section&id=Consolidated%20Financial%20Schedules) [Quarterly Consolidated Statement of Income](index=2&type=section&id=Quarterly%20Consolidated%20Statement%20of%20Income) Net income attributable to U.S. Bancorp increased to $2,001 million in Q3 2025, driven by growth in net interest and noninterest income, with an improved efficiency ratio of 57.2% Quarterly Consolidated Statement of Income (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to U.S. Bancorp | $2,001 | $1,815 | $1,709 | $1,663 | $1,714 | | Diluted earnings per common share | $1.22 | $1.11 | $1.03 | $1.01 | $1.03 | | Net interest income | $4,222 | $4,051 | $4,092 | $4,146 | $4,135 | | Total noninterest income | $3,078 | $2,924 | $2,836 | $2,833 | $2,698 | | Total noninterest expense | $4,197 | $4,181 | $4,232 | $4,311 | $4,204 | | Efficiency ratio | 57.2% | 59.2% | 60.8% | 61.5% | 60.2% | - Net income attributable to U.S. Bancorp increased by **$186 million (10.2%) QoQ** and **$287 million (16.7%) YoY**[2](index=2&type=chunk) - Diluted EPS increased by **$0.11 (9.9%) QoQ** and **$0.19 (18.4%) YoY**[2](index=2&type=chunk) [Consolidated Ending Balance Sheet](index=4&type=section&id=Consolidated%20Ending%20Balance%20Sheet) Total assets reached **$695,357 million** as of September 30, 2025, driven by growth in loans and cash, with notable increases in deposits and shareholders' equity Consolidated Ending Balance Sheet (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $695,357 | $686,370 | $676,489 | $678,318 | $686,469 | | Net loans | $374,960 | $372,706 | $374,235 | $372,249 | $366,604 | | Total deposits | $526,149 | $518,717 | $512,525 | $518,309 | $521,131 | | Total U.S. Bancorp shareholders' equity | $63,340 | $61,438 | $60,096 | $58,578 | $58,859 | - Total assets increased by **$8,987 million (1.3%) QoQ** and **$8,888 million (1.3%) YoY**[3](index=3&type=chunk) - Net loans increased by **$2,254 million (0.6%) QoQ** and **$8,356 million (2.3%) YoY**[3](index=3&type=chunk) [Consolidated Quarterly Average Balance Sheet](index=6&type=section&id=Consolidated%20Quarterly%20Average%20Balance%20Sheet) Average total assets and loans increased in Q3 2025 compared to prior periods, with deposits also rising QoQ and shareholders' equity growing Consolidated Quarterly Average Balance Sheet (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total assets | $679,605 | $673,341 | $669,393 | $671,907 | $664,640 | | Total loans | $379,152 | $378,529 | $379,028 | $375,655 | $374,070 | | Total deposits | $511,782 | $502,890 | $506,534 | $512,313 | $508,757 | | Total U.S. Bancorp shareholders' equity | $62,643 | $60,899 | $59,611 | $58,812 | $58,283 | - Average total assets increased by **$6,264 million (0.9%) QoQ** and **$14,965 million (2.3%) YoY**[5](index=5&type=chunk) - Average total loans increased by **$623 million (0.2%) QoQ** and **$5,082 million (1.4%) YoY**[5](index=5&type=chunk) [Consolidated Daily Average Balance Sheet and Related Yields and Rates](index=7&type=section&id=Consolidated%20Daily%20Average%20Balance%20Sheet%20and%20Related%20Yields%20and%20Rates) [Three Months Ended September 30, 2025 vs. 2024](index=7&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025%20vs.%202024) Net interest income (taxable-equivalent) increased by **$85 million (2.0%) YoY** to **$4,251 million**, with net interest margin slightly improving to **2.75%** Three Months Ended September 30, 2025 vs. 2024 (in millions) | Metric | Sep 30, 2025 | Sep 30, 2024 | % Change Average Balances | | :---------------------------------- | :----------- | :----------- | :------------------------ | | Net interest income (taxable-equivalent) | $4,251 | $4,166 | 2.0% | | Net interest margin (taxable-equivalent) | 2.75% | 2.74% | 0.01 pp | | Total earning assets (average) | $617,517 | $607,180 | 1.7% | | Total loans (average) | $379,152 | $374,070 | 1.4% | | Yield on total loans | 5.97% | 6.25% | -0.28 pp | | Total interest-bearing deposits (average) | $431,892 | $427,818 | 1.0% | | Rate on total interest-bearing deposits | 2.43% | 2.79% | -0.36 pp | - Average balances for investment securities increased by **3.9% YoY**, while loans held for sale decreased by **18.3%**[7](index=7&type=chunk) - Savings accounts saw a significant **70.0% increase** in average balances YoY, with their rate increasing from **0.30% to 1.83%**[7](index=7&type=chunk) [Three Months Ended September 30, 2025 vs. June 30, 2025](index=11&type=section&id=Three%20Months%20Ended%20September%2030%2C%202025%20vs.%20June%2030%2C%202025) Net interest income (taxable-equivalent) increased by **$171 million (4.2%) QoQ** to **$4,251 million**, with net interest margin improving to **2.75%** Three Months Ended September 30, 2025 vs. June 30, 2025 (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | % Change Average Balances | | :---------------------------------- | :----------- | :----------- | :------------------------ | | Net interest income (taxable-equivalent) | $4,251 | $4,080 | 4.2% | | Net interest margin (taxable-equivalent) | 2.75% | 2.66% | 0.09 pp | | Total earning assets (average) | $617,517 | $613,342 | 0.7% | | Total loans (average) | $379,152 | $378,529 | 0.2% | | Yield on total loans | 5.97% | 5.89% | 0.08 pp | | Total interest-bearing deposits (average) | $431,892 | $423,773 | 1.9% | | Rate on total interest-bearing deposits | 2.43% | 2.41% | 0.02 pp | - Average balances for loans held for sale decreased significantly by **53.5% QoQ**[12](index=12&type=chunk) - Short-term borrowings decreased by **31.1% QoQ**, while long-term debt increased by **1.6%**[12](index=12&type=chunk) [Nine Months Ended September 30, 2025 vs. 2024](index=14&type=section&id=Nine%20Months%20Ended%20September%2030%2C%202025%20vs.%202024) Net interest income (taxable-equivalent) increased by **$220 million (1.8%) YoY** to **$12,453 million**, with net interest margin improving to **2.71%** Nine Months Ended September 30, 2025 vs. 2024 (in millions) | Metric | 9 Months Ended Sep 30, 2025 | 9 Months Ended Sep 30, 2024 | % Change Average Balances | | :---------------------------------- | :-------------------------- | :-------------------------- | :------------------------ | | Net interest income (taxable-equivalent) | $12,453 | $12,233 | 1.8% | | Net interest margin (taxable-equivalent) | 2.71% | 2.70% | 0.01 pp | | Total earning assets (average) | $613,723 | $604,080 | 1.6% | | Total loans (average) | $378,903 | $373,278 | 1.5% | | Yield on total loans | 5.92% | 6.21% | -0.29 pp | | Total interest-bearing deposits (average) | $427,519 | $425,536 | 0.5% | | Rate on total interest-bearing deposits | 2.41% | 2.80% | -0.39 pp | - Average balances for loans held for sale increased by **24.9% YoY**, while interest-bearing deposits with banks decreased by **13.8%**[16](index=16&type=chunk) - Savings accounts showed a substantial **45.9% increase** in average balances YoY, with their rate increasing from **0.27% to 1.67%**[16](index=16&type=chunk) [Loan Portfolio](index=16&type=section&id=Loan%20Portfolio) The total loan portfolio reached **$382,517 million** as of September 30, 2025, with commercial loans increasing their share as the largest segment Loan Portfolio (in millions) | Loan Category | Sep 30, 2025 (Amount) | Sep 30, 2025 (Percent of Total) | Sep 30, 2024 (Amount) | Sep 30, 2024 (Percent of Total) | | :---------------------- | :-------------------- | :------------------------------ | :-------------------- | :------------------------------ | | Total loans | $382,517 | 100.0% | $374,164 | 100.0% | | Commercial | $148,414 | 38.8% | $133,638 | 35.7% | | Commercial real estate | $48,244 | 12.6% | $50,619 | 13.5% | | Residential mortgages | $115,046 | 30.1% | $118,034 | 31.5% | | Credit card | $30,594 | 8.0% | $29,037 | 7.8% | | Other retail | $40,219 | 10.5% | $42,836 | 11.5% | - Commercial loans increased by **$14,776 million (11.1%) YoY**, growing from **35.7% to 38.8%** of the total portfolio[19](index=19&type=chunk) - Automobile loans within 'Other retail' significantly decreased from **$7,308 million in Q3 2024 to $3,868 million in Q3 2025**[19](index=19&type=chunk) [Supplemental Business Segment Schedules](index=17&type=section&id=Supplemental%20Business%20Segment%20Schedules) [Wealth, Corporate, Commercial and Institutional Banking](index=18&type=section&id=Wealth%2C%20Corporate%2C%20Commercial%20and%20Institutional%20Banking) Net income for the segment was **$1,162 million** in Q3 2025, with noninterest income growth from capital markets offsetting a slight YoY decline in net interest income [Income Statement](index=18&type=section&id=Wealth%2C%20Corporate%2C%20Commercial%20and%20Institutional%20Banking_Income%20Statement) Net income was **$1,162 million** in Q3 2025, increasing QoQ but decreasing YoY, with noninterest income growth driven by capital markets revenue Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to U.S. Bancorp | $1,162 | $1,087 | $1,184 | $1,286 | $1,194 | | Net Interest Income (taxable-equivalent) | $1,823 | $1,783 | $1,757 | $1,935 | $1,889 | | Total noninterest income | $1,256 | $1,198 | $1,166 | $1,151 | $1,145 | | Provision for Credit Losses | $197 | $183 | $10 | $50 | $94 | - Capital markets revenue increased to **$219 million in Q3 2025** from **$205 million in Q3 2024**[21](index=21&type=chunk) - Net interest margin (taxable-equivalent basis) was **3.71% in Q3 2025**, down from **4.11% in Q3 2024**[21](index=21&type=chunk) [Average Balance Sheet & Financial Ratios](index=20&type=section&id=Wealth%2C%20Corporate%2C%20Commercial%20and%20Institutional%20Banking_Average%20Balance%20Sheet%20%26%20Financial%20Ratios) Average total assets grew to **$212,924 million** in Q3 2025, with average loans increasing, while deposits slightly decreased YoY Average Balance Sheet & Financial Ratios (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Average Total Assets | $212,924 | $212,145 | $208,667 | $202,799 | $200,267 | | Average Total Loans | $184,442 | $181,268 | $178,016 | $173,210 | $171,898 | | Average Total Deposits | $273,077 | $264,647 | $271,452 | $276,386 | $271,555 | | Return on average assets | 2.17% | 2.06% | 2.30% | 2.52% | 2.37% | | Efficiency ratio | 43.3% | 45.2% | 45.6% | 42.8% | 44.4% | - Average commercial loans increased by **$11,856 million (10.4%) YoY** to **$125,669 million**[23](index=23&type=chunk) - Average commercial real estate loans decreased by **$3,153 million (8.5%) YoY** to **$33,754 million**[23](index=23&type=chunk) [Credit Quality](index=20&type=section&id=Wealth%2C%20Corporate%2C%20Commercial%20and%20Institutional%20Banking_Credit%20Quality) Total net charge-offs increased to **$119 million** in Q3 2025, driven by commercial real estate, while nonperforming assets decreased QoQ Credit Quality (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net charge-offs | $119 | $106 | $61 | $119 | $140 | | Commercial real estate net charge-offs | $105 | $58 | ($5) | $46 | $67 | | Total nonperforming assets | $1,209 | $1,241 | $1,273 | $1,384 | $1,359 | - The net charge-off ratio for commercial real estate was **1.23% in Q3 2025**, up from **0.72% in Q3 2024**[23](index=23&type=chunk) - Nonperforming loans decreased by **$32 million (2.6%) QoQ** and **$151 million (11.1%) YoY**[23](index=23&type=chunk) [Other Information (Loans, Deposits, Noninterest Income, AUM)](index=22&type=section&id=Wealth%2C%20Corporate%2C%20Commercial%20and%20Institutional%20Banking_Other%20Information%20(Loans%2C%20Deposits%2C%20Noninterest%20Income%2C%20AUM)) Total Assets Under Management increased by **8.4% YoY** to **$530,017 million**, driven by significant growth in money market funds Other Information (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total Assets Under Management | $530,017 | $536,373 | $524,272 | $505,125 | $489,035 | | Global capital markets revenue | $281 | $246 | $240 | $203 | $246 | | Wealth management trust and investment management fees | $175 | $172 | $167 | $177 | $169 | | Global corporate trust deposits (average) | $56,939 | $54,385 | $59,345 | $66,420 | $66,609 | - Money market AUM increased by **$34,012 million (21.2%) YoY** to **$194,604 million**[24](index=24&type=chunk) - Institutional client group average loan balances increased by **$8,534 million (10.2%) YoY** to **$92,015 million**[24](index=24&type=chunk) [Consumer and Business Banking](index=23&type=section&id=Consumer%20and%20Business%20Banking) Net income for the segment was **$465 million** in Q3 2025, declining QoQ and YoY, despite increased noninterest income from mortgage banking revenue [Income Statement](index=23&type=section&id=Consumer%20and%20Business%20Banking_Income%20Statement) Net income was **$465 million** in Q3 2025, decreasing QoQ and YoY, with total noninterest income growth driven by mortgage banking revenue Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to U.S. Bancorp | $465 | $474 | $421 | $427 | $485 | | Net Interest Income (taxable-equivalent) | $1,849 | $1,842 | $1,768 | $1,912 | $1,928 | | Total noninterest income | $436 | $407 | $408 | $367 | $401 | | Mortgage banking revenue | $180 | $162 | $173 | $116 | $155 | | Provision for Credit Losses | $61 | $39 | $62 | $80 | $18 | - Mortgage banking revenue increased by **$18 million (11.1%) QoQ** and **$25 million (16.1%) YoY**[25](index=25&type=chunk) - Net interest margin (taxable-equivalent basis) was **4.95% in Q3 2025**, up from **4.79% QoQ** but down from **4.86% YoY**[25](index=25&type=chunk) [Average Balance Sheet & Financial Ratios](index=25&type=section&id=Consumer%20and%20Business%20Banking_Average%20Balance%20Sheet%20%26%20Financial%20Ratios) Average total assets decreased to **$158,749 million** in Q3 2025, with average loans declining, while deposits increased QoQ but remained stable YoY Average Balance Sheet & Financial Ratios (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Average Total Assets | $158,749 | $164,989 | $166,491 | $168,690 | $168,871 | | Average Total Loans | $145,900 | $149,475 | $153,906 | $155,036 | $155,240 | | Average Total Deposits | $221,963 | $220,370 | $217,990 | $218,823 | $220,000 | | Return on average assets | 1.16% | 1.15% | 1.03% | 1.01% | 1.14% | | Efficiency ratio | 70.2% | 70.2% | 71.3% | 71.5% | 71.4% | - Average residential mortgages decreased by **$6,127 million (6.0%) YoY** to **$95,724 million**[27](index=27&type=chunk) - Average other retail loans decreased by **$3,338 million (8.9%) YoY** to **$33,999 million**[27](index=27&type=chunk) [Credit Quality](index=25&type=section&id=Consumer%20and%20Business%20Banking_Credit%20Quality) Total net charge-offs increased to **$74 million** in Q3 2025, driven by other retail loans, while nonperforming assets remained stable QoQ and YoY Credit Quality (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net charge-offs | $74 | $66 | $75 | $74 | $65 | | Other retail net charge-offs | $58 | $52 | $62 | $62 | $50 | | Total nonperforming assets | $417 | $412 | $406 | $407 | $419 | - The net charge-off ratio for other retail loans was **0.68% in Q3 2025**, up from **0.53% in Q3 2024**[27](index=27&type=chunk) - Nonperforming loans remained stable at **$394 million in Q3 2025** compared to **$398 million in Q3 2024**[27](index=27&type=chunk) [Other Information (Retail Loans, Mortgage Banking)](index=27&type=section&id=Consumer%20and%20Business%20Banking_Other%20Information%20(Retail%20Loans%2C%20Mortgage%20Banking)) Retail credit and mortgage production volumes increased QoQ but decreased YoY, while the fair value of mortgage servicing rights remained substantial Other Information (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total retail credit production volume | $4,629 | $4,306 | $3,457 | $3,374 | $3,684 | | Mortgage production volume | $9,951 | $9,645 | $6,562 | $10,211 | $11,076 | | Mortgages serviced for others | $216,146 | $220,795 | $216,701 | $216,648 | $215,286 | | of branches | 2,080 | 2,081 | 2,117 | 2,165 | 2,187 | | Mortgage servicing rights fair value | $3,289 (as of Sep 30, 2025) | | | | | - Mortgage production volume increased by **$306 million (3.2%) QoQ** but decreased by **$1,125 million (10.2%) YoY**[29](index=29&type=chunk) - The number of branches decreased by **107 (4.9%) YoY**, reflecting ongoing network optimization[28](index=28&type=chunk) [Payment Services](index=29&type=section&id=Payment%20Services) Net income for the segment was **$326 million** in Q3 2025, increasing YoY but decreasing QoQ, with YoY growth in net interest and noninterest income [Income Statement](index=29&type=section&id=Payment%20Services_Income%20Statement) Net income was **$326 million** in Q3 2025, increasing YoY but decreasing QoQ, with strong net interest and noninterest income growth Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income attributable to U.S. Bancorp | $326 | $343 | $354 | $233 | $304 | | Net Interest Income (taxable-equivalent) | $781 | $730 | $742 | $729 | $727 | | Total noninterest income | $1,106 | $1,116 | $1,035 | $1,051 | $1,073 | | Card revenue | $437 | $439 | $396 | $431 | $424 | | Merchant processing services | $463 | $474 | $415 | $419 | $440 | | Provision for Credit Losses | $408 | $384 | $317 | $463 | $404 | - Net interest margin (taxable-equivalent basis) was **7.21% in Q3 2025**, up from **6.93% QoQ** and **6.94% YoY**[33](index=33&type=chunk) - The efficiency ratio improved to **55.3% in Q3 2025** from **56.5% in Q3 2024**[33](index=33&type=chunk) [Average Balance Sheet & Financial Ratios](index=31&type=section&id=Payment%20Services_Average%20Balance%20Sheet%20%26%20Financial%20Ratios) Average total assets grew to **$48,424 million** in Q3 2025, with average loans increasing, primarily driven by credit card loans Average Balance Sheet & Financial Ratios (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Average Total Assets | $48,424 | $47,835 | $46,825 | $48,545 | $47,195 | | Average Total Loans | $42,957 | $42,224 | $41,607 | $42,021 | $41,652 | | Average Credit Card Loans | $30,241 | $29,588 | $29,404 | $29,438 | $28,994 | | Average Total Deposits | $2,522 | $2,606 | $2,776 | $2,686 | $2,748 | | Return on average assets | 2.67% | 2.88% | 3.07% | 1.91% | 2.56% | | Efficiency ratio | 55.3% | 54.4% | 55.6% | 56.5% | 55.0% | - Average credit card loans increased by **$1,247 million (4.3%) YoY**[35](index=35&type=chunk) - Average commercial loans increased by **$777 million (6.2%) YoY** to **$12,588 million**[35](index=35&type=chunk) [Credit Quality](index=31&type=section&id=Payment%20Services_Credit%20Quality) Total net charge-offs decreased QoQ to **$347 million** but increased YoY, with credit card net charge-off ratio improving QoQ Credit Quality (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net charge-offs | $347 | $381 | $389 | $378 | $359 | | Credit card net charge-offs | $284 | $317 | $325 | $317 | $299 | | Credit card net charge-off ratio | 3.73% | 4.30% | 4.48% | 4.28% | 4.10% | | Nonperforming loans | $0 | $0 | $0 | $0 | $0 | - Commercial net charge-offs remained stable at **$62 million in Q3 2025** compared to **$59 million in Q3 2024**[35](index=35&type=chunk) [Other Information (Noninterest Income, Payment Volumes)](index=33&type=section&id=Payment%20Services_Other%20Information%20(Noninterest%20Income%2C%20Payment%20Volumes)) All payment volumes, including retail, corporate, and merchant acquiring, showed QoQ and YoY growth, indicating strong operational activity Other Information (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total noninterest income | $1,106 | $1,116 | $1,035 | $1,051 | $1,073 | | Total retail payment solutions volume | $66,517 | $65,953 | $60,989 | $64,887 | $64,211 | | Corporate payment systems volume | $23,312 | $22,317 | $21,612 | $21,859 | $23,808 | | Merchant volume (acquiring) | $157,540 | $155,853 | $143,505 | $142,576 | $148,338 | | of merchant transactions | 2,305,019,024 | 2,259,541,900 | 2,014,546,904 | 2,112,763,544 | 2,171,741,540 | - Merchant volume (acquiring) increased by **$1,687 million (1.1%) QoQ** and **$9,202 million (6.2%) YoY**[36](index=36&type=chunk) - Total retail payment solutions volume increased by **$2,306 million (3.6%) YoY**[36](index=36&type=chunk) [Treasury and Corporate Support](index=34&type=section&id=Treasury%20and%20Corporate%20Support) The segment reported **$48 million** net income in Q3 2025, a significant improvement from prior losses, driven by improved net interest income and reduced securities losses [Income Statement](index=34&type=section&id=Treasury%20and%20Corporate%20Support_Income%20Statement) Net income was **$48 million** in Q3 2025, a substantial improvement from prior net losses, with improved net interest income and reduced securities losses Income Statement (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--------------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Net income (loss) attributable to U.S. Bancorp | $48 | ($89) | ($250) | ($283) | ($269) | | Net Interest Income (taxable-equivalent) | ($202) | ($275) | ($145) | ($400) | ($378) | | Securities gains (losses), net | ($7) | ($57) | $0 | ($1) | ($119) | | Provision for Credit Losses | ($95) | ($105) | $148 | ($33) | $41 | - Total net revenue improved significantly from **($299) million in Q3 2024** to **$78 million in Q3 2025**[37](index=37&type=chunk) - Income (loss) before provision and income taxes improved from **($501) million in Q3 2024** to **($138) million in Q3 2025**[37](index=37&type=chunk) [Average Balance Sheet & Financial Ratios](index=36&type=section&id=Treasury%20and%20Corporate%20Support_Average%20Balance%20Sheet%20%26%20Financial%20Ratios) Average total assets increased to **$259,508 million** in Q3 2025, with other earning assets as the largest component, while deposits decreased QoQ Average Balance Sheet & Financial Ratios (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Average Total Assets | $259,508 | $248,372 | $247,410 | $251,873 | $248,307 | | Average Total Loans | $5,853 | $5,562 | $5,499 | $5,388 | $5,280 | | Average Other Earning Assets | $225,295 | $217,155 | $217,410 | $224,186 | $219,624 | | Average Total Deposits | $14,220 | $15,267 | $14,316 | $14,418 | $14,454 | - Average total assets increased by **$11,136 million (4.5%) QoQ** and **$11,201 million (4.5%) YoY**[39](index=39&type=chunk) - Average other earning assets increased by **$5,671 million (2.6%) YoY**[39](index=39&type=chunk) [Credit Quality](index=36&type=section&id=Treasury%20and%20Corporate%20Support_Credit%20Quality) The segment reported negative net charge-offs of **($4) million** in Q3 2025, indicating net recoveries, with nonperforming assets decreasing YoY Credit Quality (in millions) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :------------------------ | :----------- | :----------- | :----------- | :----------- | :----------- | | Total net charge-offs | ($4) | $1 | $22 | ($9) | $0 | | Total nonperforming assets | $28 | $27 | $48 | $41 | $70 | - Nonperforming loans decreased from **$52 million in Q3 2024** to **$8 million in Q3 2025**[39](index=39&type=chunk)