U.S. Bancorp Shares Rise After Record Revenue and Earnings Beat

Core Viewpoint - U.S. Bancorp reported strong fourth-quarter earnings, surpassing expectations due to record net revenue and improved operational efficiency, resulting in a more than 1% increase in share price intra-day on Tuesday Financial Performance - Adjusted earnings per share were $1.26, exceeding analyst estimates of $1.19 [1] - Net revenue reached a record $7.37 billion, reflecting a 5.1% year-over-year increase, while fee revenue rose by 7.6% [1] - Net income increased by 23% year over year to $2.05 billion [1] Operational Efficiency - Net interest margin improved to 2.77%, up 6 basis points from the previous year and 2 basis points sequentially [2] - The bank achieved positive adjusted operating leverage of 440 basis points, with an efficiency ratio improving to 57.4% from 61.5% in the prior-year quarter [2] Loan Growth and Credit Quality - Total loans increased by 2.3% year over year to $384.3 billion, driven by a 10.1% rise in commercial lending and a 5.7% increase in credit card balances [3] - Credit quality improved, with the net charge-off ratio declining to 0.54% from 0.60% in the fourth quarter of 2024 [3]