ZACKS·2026-01-20 18:52Core Insights - U.S. Bancorp's fourth-quarter 2025 earnings per share of $1.26 exceeded the Zacks Consensus Estimate of $1.19, marking a 24.7% increase from the prior-year quarter [1][8] - The net income attributable to U.S. Bancorp was $2.04 billion, reflecting a 22.9% rise from the previous year [1] - Total revenues for the quarter were $7.36 billion, up 5.1% year over year, and slightly above the Zacks Consensus Estimate by 0.6% [3][8] Financial Performance - For the full year 2025, earnings per share were $4.62, surpassing the consensus estimate of $4.55 and increasing from $3.79 in 2024 [2] - Net income for 2025 was $7.6 billion, a 20.2% increase from the prior year [2] - Tax-equivalent net interest income (NII) for the quarter totaled $4.31 billion, up 3.2% year over year, driven by loan growth and fixed asset repricing [3][4] Revenue and Expenses - Non-interest income rose 7.8% year over year to $3.05 billion, supported by increases across nearly all components [4] - Non-interest expenses decreased by 1.9% year over year to $4.23 billion, primarily due to lower compensation and employee benefits expenses [4] - The efficiency ratio improved to 57.4%, down from 61.5% in the prior year, indicating enhanced profitability [5] Loan and Deposit Growth - Average total loans increased by 1.3% to $384.3 billion from the previous quarter [6] - Average total deposits rose slightly to $515.1 billion from the previous quarter [6] Credit Quality - The total allowance for credit losses was $7.94 billion, showing a marginal year-over-year decline [7] - Non-performing assets decreased by 13.2% year over year to $1.59 billion [7] - Net charge-offs were $527 million, down 6.2% from the previous quarter [7] Capital Ratios - The Tier 1 capital ratio improved to 12.3% as of December 31, 2025, up from 12.2% in the prior year [9] - The Common Equity Tier 1 capital ratio was 10.8%, an increase from 10.6% year over year [9] - The tangible common equity to tangible assets ratio rose to 6.7%, up from 5.8% in the prior year [9] Future Outlook - U.S. Bancorp's diversified revenue streams, solid balance sheet, and disciplined cost control are expected to support strong financial performance moving forward [10] - Growth in NII and non-interest income, along with improved efficiency, is anticipated to enhance future profitability [10]