[Consolidated Financial Statements](index=2&type=section&id=Consolidated%20Financial%20Statements) [Quarterly Consolidated Statement of Income](index=2&type=section&id=QUARTERLY%20CONSOLIDATED%20STATEMENT%20OF%20INCOME) U.S. Bancorp's Q2 2025 net income rose to **$1.815 billion**, driven by increased noninterest income and improved efficiency, with diluted EPS reaching **$1.11** Key Income Statement Data (Q2 2025 vs. Prior Periods) | (Millions of Dollars, Except Per Share Data) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $4,051 | $4,092 | $4,023 | | Total Noninterest Income | $2,924 | $2,836 | $2,815 | | Provision for Credit Losses | $501 | $537 | $568 | | Net Income Attributable to U.S. Bancorp | $1,815 | $1,709 | $1,603 | | Diluted Earnings Per Share | $1.11 | $1.03 | $0.97 | | Dividends Declared Per Common Share | $0.50 | $0.50 | $0.49 | Key Financial Ratios (%) | Ratio | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Interest Margin (taxable-equivalent) | 2.66% | 2.72% | 2.67% | | Return on Average Assets | 1.08% | 1.04% | 0.97% | | Return on Average Common Equity | 12.9% | 12.3% | 12.4% | | Efficiency Ratio | 59.2% | 60.8% | 61.0% | [Consolidated Ending Balance Sheet](index=4&type=section&id=CONSOLIDATED%20ENDING%20BALANCE%20SHEET) Total assets reached **$686.4 billion** as of June 30, 2025, with deposits growing to **$518.7 billion** and shareholders' equity increasing to **$61.4 billion** Key Balance Sheet Data (As of June 30, 2025) | (Billions of Dollars) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $686.4 | $676.5 | $680.1 | | Net Loans | $372.7 | $374.2 | $368.6 | | Total Deposits | $518.7 | $512.5 | $523.8 | | Total U.S. Bancorp Shareholders' Equity | $61.4 | $60.1 | $56.4 | [Consolidated Average Balance Sheet and Yields/Rates](index=6&type=section&id=CONSOLIDATED%20AVERAGE%20BALANCE%20SHEET%20AND%20YIELDS%2FRATES) Q2 2025 saw a **Net Interest Margin (NIM)** compression to **2.66%** due to higher funding costs, while average earning assets remained stable at **$613.3 billion** - The Net Interest Margin (NIM) on a taxable-equivalent basis compressed to **2.66%** in Q2 2025, down **6 basis points** from Q1 2025 and **1 basis point** from Q2 2024[7](index=7&type=chunk)[11](index=11&type=chunk) Year-over-Year Average Balance and Yield Comparison (Q2 2025 vs. Q2 2024) | (Millions of Dollars) | Q2 2025 | Q2 2024 | % Change | | :--- | :--- | :--- | :--- | | Average Total Earning Assets | $613,342 | $608,892 | 0.7% | | Average Total Loans | $378,529 | $374,685 | 1.0% | | Average Total Deposits | $502,890 | $513,909 | (2.1)% | | Yield on Total Earning Assets | 4.99% | 5.29% | - | | Rate on Total Interest-Bearing Liabilities | 2.80% | 3.18% | - | Quarter-over-Quarter Average Balance and Yield Comparison (Q2 2025 vs. Q1 2025) | (Millions of Dollars) | Q2 2025 | Q1 2025 | % Change | | :--- | :--- | :--- | :--- | | Average Total Earning Assets | $613,342 | $610,230 | 0.5% | | Average Total Loans | $378,529 | $379,028 | (0.1)% | | Average Total Deposits | $502,890 | $506,534 | (0.7)% | | Yield on Total Earning Assets | 4.99% | 4.99% | - | | Rate on Total Interest-Bearing Liabilities | 2.80% | 2.75% | - | [Loan Portfolio](index=16&type=section&id=LOAN%20PORTFOLIO) The total loan portfolio reached **$380.2 billion** in Q2 2025, with commercial loans as the largest segment at **38.8%**, while residential mortgages declined Loan Portfolio Composition (as of June 30, 2025) | Loan Category | Amount (Millions of Dollars) | Percent of Total | | :--- | :--- | :--- | | Total Commercial | $147,416 | 38.8% | | Total Commercial Real Estate | $48,181 | 12.7% | | Total Residential Mortgages | $114,475 | 30.1% | | Credit Card | $30,023 | 7.9% | | Total Other Retail | $40,148 | 10.5% | | **Total Loans** | **$380,243** | **100.0%** | - Compared to the prior quarter, commercial loans increased by **$3.3 billion**, while residential mortgages and commercial real estate loans decreased by **$4.4 billion** and **$0.15 billion**, respectively[16](index=16&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 this segment was **$1.10 billion** in Q2 2025, impacted by higher credit loss provisions, despite total net revenue reaching **$3.0 billion** and AUM growing to **$536.4 billion** Segment Performance Highlights | (Millions of Dollars) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $1,098 | $1,200 | $1,183 | | Total Net Revenue | $3,000 | $2,947 | $3,058 | | Provision for Credit Losses | $183 | $10 | $100 | | Total Net Charge-offs | $106 | $61 | $107 | - Assets Under Management (AUM) increased to **$536.4 billion**, up from **$524.3 billion** in the prior quarter, with growth seen in fixed income and money market categories[20](index=20&type=chunk) [Consumer and Business Banking](index=23&type=section&id=CONSUMER%20AND%20BUSINESS%20BANKING) Net income for Consumer and Business Banking rose to **$459 million** in Q2 2025, driven by higher net interest income and lower credit loss provisions, while branch count decreased to **2,081** Segment Performance Highlights | (Millions of Dollars) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $459 | $408 | $493 | | Net Interest Income | $1,843 | $1,768 | $1,912 | | Mortgage Banking Revenue | $162 | $173 | $160 | | Provision for Credit Losses | $39 | $62 | $30 | - Mortgage production volume increased significantly to **$9.6 billion** from **$6.6 billion** in the prior quarter[24](index=24&type=chunk) - The number of branches continued to decline, reaching **2,081** at the end of Q2 2025, down from **2,117** in Q1 2025 and **2,207** a year ago[23](index=23&type=chunk) [Payment Services](index=29&type=section&id=PAYMENT%20SERVICES) Payment Services reported **$325 million** net income in Q2 2025, with total net revenue growing to **$1.85 billion** driven by increased card and merchant processing volumes, despite higher credit loss provisions Segment Performance Highlights | (Millions of Dollars) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income | $325 | $337 | $289 | | Total Net Revenue | $1,846 | $1,777 | $1,766 | | Total Noninterest Income | $1,116 | $1,035 | $1,093 | | Provision for Credit Losses | $384 | $317 | $388 | - Credit card net charge-off ratio was **4.30%**, down slightly from **4.48%** in the prior quarter but comparable to **4.47%** a year ago[28](index=28&type=chunk) - Merchant acquiring volume increased to **$155.9 billion** from **$143.5 billion** in the prior quarter, reflecting strong transaction growth[29](index=29&type=chunk) [Treasury and Corporate Support](index=34&type=section&id=TREASURY%20AND%20CORPORATE%20SUPPORT) Treasury and Corporate Support reported a reduced net loss of **$67 million** in Q2 2025, significantly improving from prior quarters due to a **$105 million** reserve release and lower noninterest expenses Segment Performance Highlights | (Millions of Dollars) | Q2 2025 | Q1 2025 | Q2 2024 | | :--- | :--- | :--- | :--- | | Net Income (Loss) | ($67) | ($236) | ($362) | | Net Interest Income (Loss) | ($294) | ($168) | ($461) | | Provision for Credit Losses | ($105) | $148 | $50 | - The segment recorded a reserve release (negative provision) of **$105 million**, contrasting with a provision expense of **$148 million** in the prior quarter[30](index=30&type=chunk)

Group 1 - U.S. Bancorp is set to release its second-quarter earnings results on July 17, with expected earnings of $1.07 per share, up from 97 cents per share a year ago [1] - The company is projected to report quarterly revenue of $7.07 billion, an increase from $6.84 billion in the previous year [1] - U.S. Bancorp raised its quarterly cash dividend from 50 cents to 52 cents per share on July 1 [2] Group 2 - Truist Securities analyst John McDonald maintained a Hold rating and raised the price target from $48 to $50 [4] - Raymond James analyst Michael Rose upgraded the stock from Outperform to Strong Buy and increased the price target from $51 to $57 [4] - Morgan Stanley analyst Betsy Graseck maintained an Overweight rating and raised the price target from $50 to $51 [4] - Citigroup analyst Keith Horowitz maintained a Buy rating and increased the price target from $55 to $59 [4] - Goldman Sachs analyst Richard Ramsden maintained a Neutral rating and raised the price target from $41 to $46 [4]

Core Viewpoint - U.S. Bancorp (USB) is expected to report year-over-year increases in revenues and earnings for Q2 2025, benefiting from lower expenses and higher non-interest income [1] Group 1: Financial Performance Expectations - The company anticipates net interest income (NII) for Q2 2025 to be between $4.1 billion and $4.2 billion, with a consensus estimate of $4.01 billion, reflecting a marginal increase from the previous quarter [2][8] - The consensus estimate for total revenues in Q2 2025 is $7.06 billion, indicating a rise of 3.3% from the year-ago figure [13] - The Zacks Consensus Estimate for average earning assets is $611.2 million, suggesting a slight sequential increase [4] Group 2: Non-Interest Income and Trading Activity - Non-interest income is projected to rise by 3.3% due to gains in trading, mortgage, and card revenues, with total non-interest income estimated at $2.93 billion [9][8] - Trading volumes in equity derivatives and corporate bonds have increased, with the consensus estimate for commercial product revenues at $391 million, reflecting a 2.4% increase from the prior quarter [5] Group 3: Loan Activity and Market Conditions - Lending activity remained strong in Q2 2025, supported by a resilient labor market and easing inflation, with notable demand for commercial and industrial loans [3] - Mortgage banking revenues are expected to reach $179.6 million, indicating a 3.8% increase from the previous quarter, despite mortgage rates fluctuating in the mid-to-upper 6% range [6] Group 4: Expense Management and Asset Quality - The company aims to keep non-interest expenses at or below $4.2 billion in Q2 2025, despite higher costs related to compensation and employee benefits [10][9] - The Zacks Consensus Estimate for non-performing loans is $1.72 billion, indicating a rise of 1.8% from the prior quarter [10] Group 5: Earnings Expectations - U.S. Bancorp has a positive Earnings ESP of +0.21%, indicating a high likelihood of beating earnings estimates [11] - The consensus estimate for Q2 earnings is $1.07, reflecting a 9.2% increase from the year-ago reported number [12]

Core Viewpoint - Analysts expect U.S. Bancorp (USB) to report quarterly earnings of $1.07 per share, reflecting a year-over-year increase of 9.2%, with revenues projected at $7.06 billion, up 3.3% from the previous year [1] Earnings Projections - The consensus EPS estimate has been revised down by 0.7% in the last 30 days, indicating a reassessment by analysts [1][2] Key Financial Metrics - Efficiency Ratio is forecasted to reach 59.1%, down from 61.0% in the same quarter last year [4] - Average Balances - Total earning assets are estimated at $611.20 billion, slightly up from $608.89 billion year-over-year [4] - Total nonperforming loans are projected at $1.72 billion, down from $1.81 billion in the same quarter last year [5] - Total nonperforming assets are expected to be $1.75 billion, compared to $1.85 billion a year ago [5] - Leverage ratio is anticipated to reach 8.5%, up from 8.1% year-over-year [6] - Tier 1 Capital Ratio is expected to be 12.5%, compared to 11.9% in the same quarter last year [6] - Total Noninterest Income is projected at $2.93 billion, up from $2.82 billion year-over-year [6] - Net interest income (taxable-equivalent basis) is likely to reach $4.12 billion, compared to $4.05 billion in the same quarter last year [7] - Mortgage banking revenue is expected at $179.55 million, down from $190.00 million year-over-year [7] - Other noninterest income is estimated at $157.21 million, slightly up from $157.00 million last year [8] - Commercial products revenue is projected at $391.02 million, compared to $374.00 million in the same quarter last year [8] - Service charges are expected to reach $322.07 million, compared to $322.00 million in the same quarter last year [9] Stock Performance - U.S. Bancorp shares have increased by 9.7% over the past month, outperforming the Zacks S&P 500 composite, which rose by 4% [10]

Core Viewpoint - Top analysts on Wall Street recommend three dividend stocks for investors seeking stable returns amid uncertainties from tariffs and macroeconomic challenges: ConocoPhillips (COP.US), U.S. Bancorp (USB.US), and HP Inc. (HPQ.US) [1] ConocoPhillips - ConocoPhillips plans to distribute $2.5 billion to shareholders in Q1 2025, including $1.5 billion in stock buybacks and $1 billion in cash dividends [2] - The quarterly dividend is $0.78 per share, with an annualized dividend of $3.12 and a dividend yield of 3.3% [2] - Analyst Scott Hanold from RBC Capital Markets maintains a "Buy" rating with a target price of $115, expecting ConocoPhillips to outperform other large exploration and production companies [2][3] - Hanold highlights ConocoPhillips' focus on shareholder returns, strong balance sheet, and industry-leading dividend levels, along with its ability to generate competitive free cash flow across commodity price cycles [3] - The company has a low breakeven point, capable of covering production maintenance and dividends even when WTI crude oil prices are below $40 per barrel [3] U.S. Bancorp - U.S. Bancorp offers a diversified range of financial services, with a quarterly dividend of $0.50 per share, annualized at $2, and a dividend yield of 4.2% [5] - Analyst Gerard Cassidy from RBC Capital Markets reiterates a "Buy" rating with a target price of $50, citing the bank's new leadership and operational leverage goals [5][6] - U.S. Bancorp has been one of the best-performing banks in the U.S., with a compound annual growth rate (CAGR) of shareholder returns over the past 20 years, largely due to its focus on tangible book value and dividends [5] - Cassidy notes that U.S. Bancorp has returned up to 80% of its earnings through stock buybacks and dividends annually [5] HP Inc. - HP announced a quarterly dividend of $0.2894 per share, marking the fourth dividend for fiscal year 2025, with an annualized dividend of $1.1576 and a yield of 4.5% [7] - Analyst Amit Daryanani from Evercore maintains a "Buy" rating with a target price of $29, emphasizing HP's successful business diversification and production strategies [7][8] - HP aims for 90% of its products targeted at the U.S. market to be produced outside of China, with production remaining in Asia and some planned in Mexico [8] - The company is focused on achieving $2 billion in annual savings through cost-saving initiatives, including internal AI tools to enhance productivity and efficiency [8]

Group 1: Market Overview - The optimism surrounding the artificial intelligence boom has weakened due to the impact of Trump tariffs and macroeconomic challenges [1] - Top analysts on Wall Street recommend three dividend stocks for investors seeking stable returns [1] Group 2: ConocoPhillips (COP.US) - ConocoPhillips plans to distribute $2.5 billion to shareholders in Q1 2025, including $1.5 billion in stock buybacks and $1 billion in cash dividends [2] - The quarterly dividend is $0.78 per share, with an annualized dividend of $3.12 and a dividend yield of 3.3% [2] - Analyst Scott Hanold from RBC Capital Markets maintains a "Buy" rating with a target price of $115, citing the company's strong balance sheet and industry-leading dividend levels [2] - ConocoPhillips is expected to generate competitive free cash flow across various commodity price cycles due to its diversified global asset base [2] - The company has a low breakeven point, allowing it to maintain production and pay dividends even when WTI crude oil prices are below $40 per barrel [2] Group 3: U.S. Bancorp (USB.US) - U.S. Bancorp offers a diversified business model, with a quarterly dividend of $0.50 per share, an annualized dividend of $2, and a dividend yield of 4.2% [4] - Analyst Gerard Cassidy from RBC Capital Markets reiterates a "Buy" rating with a target price of $50, highlighting the bank's new leadership and operational leverage of 270 basis points in Q1 2025 [4][5] - U.S. Bancorp has been one of the best-performing banks in the U.S., with a compound annual growth rate (CAGR) in shareholder returns over the past 20 years [4] - The bank returns up to 80% of its earnings through stock buybacks and dividends annually [4] Group 4: HP Inc. (HPQ.US) - HP announced a quarterly dividend of $0.2894 per share, marking the fourth dividend distribution for fiscal year 2025, with an annualized dividend of $1.1576 and a yield of 4.5% [6] - Analyst Amit Daryanani from Evercore maintains a "Buy" rating with a target price of $29, emphasizing the company's successful diversification efforts [6][7] - HP aims for 90% of its products targeted at the U.S. market to be produced outside of China, with production remaining in Asia and some planned in Mexico [7] - The company is implementing cost-saving measures to achieve an annual savings target of $2 billion, including the use of internal AI tools to enhance productivity [7]

Group 1 - U.S. Bancorp is scheduled to report its Q2 earnings on July 17th, following PNC Financial's report on July 16th and after all major money center banks like JPMorgan have reported [1] - The focus is on providing insightful rating analysis on leading financial firms to identify investment opportunities and potential risks [1] Group 2 - The article emphasizes the importance of stocks that exhibit both growth and quality factors, indicating a strong growth narrative supported by robust financial statements [1]

Core Viewpoint - The ongoing AI boom presents strong growth opportunities, but concerns about tariffs and macroeconomic challenges temper investor optimism. Dividend-paying stocks are recommended for consistent income amidst this uncertainty [1]. Group 1: ConocoPhillips (COP) - ConocoPhillips distributed $2.5 billion to shareholders in Q1 2025, comprising $1.5 billion in share repurchases and $1.0 billion in dividends, with a quarterly dividend of $0.78 per share, yielding 3.3% [2]. - Analyst Scott Hanold from RBC Capital maintains a buy rating on ConocoPhillips with a price target of $115, citing its strong balance sheet and competitive returns-focused value proposition [3][4]. - The company is positioned to generate competitive free cash flow (FCF) through various commodity price cycles, with a low break-even point below $40 per barrel [5]. Group 2: U.S. Bancorp (USB) - U.S. Bancorp offers a quarterly dividend of $0.50 per share, yielding 4.2%, and is recognized for its diversified financial services [7]. - Analyst Gerard Cassidy reaffirms a buy rating with a 12-month price target of $50, highlighting the bank's new leadership and strong operating leverage of 270 basis points reported in Q1 2025 [8][9]. - U.S. Bancorp has consistently returned up to 80% of its earnings through stock buybacks and dividends, with a focus on increasing tangible book value [9][10]. Group 3: HP Inc. (HPQ) - HP declared a quarterly dividend of $0.2894 per share, yielding 4.5%, and is on track to achieve significant cost savings through its Future Ready plan [12]. - Analyst Amit Daryanani maintains a buy rating with a price target of $29, noting HP's successful diversification and plans to manufacture 90% of U.S.-bound products outside China [13][14]. - HP aims to generate $2 billion in gross annual run-rate savings, leveraging internal AI tools to enhance productivity and efficiency [15].

Core Viewpoint - The market anticipates U.S. Bancorp (USB) will report a year-over-year increase in earnings and revenues for the quarter ended June 2025, with actual results being crucial for stock price movement [1][2]. Earnings Expectations - U.S. Bancorp is expected to post quarterly earnings of $1.07 per share, reflecting a year-over-year increase of +9.2% [3]. - Revenues are projected to be $7.06 billion, which is a 3.2% increase from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised down by 0.67% over the last 30 days, indicating a reassessment by analysts [4]. - Despite the downward revision, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +0.08% [12]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive Earnings ESP reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10]. - U.S. Bancorp currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12]. Historical Performance - In the last reported quarter, U.S. Bancorp exceeded the expected earnings of $0.99 per share by delivering $1.03, resulting in a surprise of +4.04% [13]. - The company has beaten consensus EPS estimates in each of the last four quarters [14]. Industry Comparison - The Bank of New York Mellon Corporation (BK), another player in the Zacks Banks - Major Regional industry, is expected to report earnings of $1.74 per share, reflecting a year-over-year change of +15.2% [18]. - BK's revenues are expected to be $4.86 billion, up 5.6% from the previous year, with a positive Earnings ESP of +1.03% and a Zacks Rank of 2 [19][20].

Gunjan Kedia, the new head of U.S. Bank parent U.S. Bancorp, has a chance to reinvigorate the country’s fifth biggest commercial lender after it disappointed investors and analysts with lackluster returns https://t.co/Wwz5r3OB4y ...