U.S. Bancorp(USB) - 2025 Q2 - Quarterly Results

Consolidated Financial Statements Quarterly Consolidated Statement of Income 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 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 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][11] 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 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] Supplemental Business Segment Schedules Wealth, Corporate, Commercial and Institutional Banking 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] Consumer and Business Banking 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] - 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] Payment Services 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] - Merchant acquiring volume increased to $155.9 billion from $143.5 billion in the prior quarter, reflecting strong transaction growth[29] Treasury and Corporate Support 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]