U.S. Bancorp(US:USB) Benzinga·2026-01-20 14:46Core Viewpoint - U.S. Bancorp reported strong fourth-quarter results for 2025, with adjusted earnings per share exceeding analyst expectations, but the stock price fell due to market reactions [1] Financial Performance - Adjusted earnings per share for Q4 2025 were $1.26, surpassing the consensus estimate of $1.19 - Quarterly sales reached $7.337 billion, exceeding the expected $7.308 billion [1] - Net income increased by 23.0% year over year to $2.045 billion [3] - The provision for credit losses was $577 million, up from $571 million in Q3 2025 and $560 million in Q4 2024, driven by loan portfolio growth [1][2] Key Metrics - Return on tangible common equity rose to 18.4%, and return on average assets increased to 1.19% - The efficiency ratio improved to 57.4% compared to Q4 2024 - Net interest margin increased to 2.77%, up 6 basis points year over year [3] - Average deposits rose to $515.1 billion from $511.8 billion in Q3 2025, while average total loans increased to $384.3 billion from $379.2 billion [4] Strategic Developments - U.S. Bancorp signed a definitive agreement to acquire BTIG, LLC, enhancing its investment banking and trading capabilities, with the deal expected to close in Q2 2026 pending regulatory approvals [6] - The company completed a cross-border stablecoin pilot, indicating readiness for future compliant commercial offerings [6] Outlook - U.S. Bancorp forecasts fiscal 2026 revenue between $29.85 billion and $30.42 billion, slightly above Wall Street expectations of $30.04 billion [7] - The company remains committed to its strategic priorities and medium-term targets to drive sustainable EPS growth and industry-leading returns [7] Stock Performance - U.S. Bancorp shares fell by 3.25% to $52.63 during premarket trading, approaching a 52-week high of $56.19 [8]