Core Viewpoint - U.S. Bancorp (USB) is anticipated to report year-over-year growth in both revenues and earnings for the third quarter of 2025, with a strong performance driven by net interest income (NII) and non-interest income [1][8] Group 1: Financial Performance Expectations - U.S. Bancorp is scheduled to report Q3 2025 results on October 16, 2025, before market opening [1] - Management expects NII for Q3 2025 to be between $4.1 billion and $4.2 billion, supported by stable funding costs and strong loan demand [2][8] - The consensus estimate for NII is $4.13 billion, reflecting a 2% increase from the previous quarter [3] - Total revenues for Q3 2025 are estimated at $7.16 billion, indicating a 4.7% rise from the year-ago figure [13] Group 2: Non-Interest Income and Expenses - Total non-interest income is projected to be approximately $3 billion in Q3 2025, representing a sequential increase of 1.9% [9][8] - The Zacks Consensus Estimate for capital markets revenues is $396.7 million, showing a 1.7% increase from the prior quarter [5] - Mortgage banking revenues are estimated at $167.1 million, indicating a 3.1% increase from the previous quarter [6] - Adjusted total non-interest expenses are expected to be $4.2 billion or lower, with a focus on prudent expense management [10] Group 3: Asset Quality and Market Conditions - The company is likely to have set aside funds for potential bad loans, anticipating two rate cuts this year [10] - The Zacks Consensus Estimate for non-performing loans is $1.70 billion, reflecting a 4% increase from the prior quarter [11] - Market volatility and client activity have increased due to uncertainties surrounding tariff policies, impacting trading volumes positively [4][5] Group 4: Earnings Surprise Potential - U.S. Bancorp has a history of earnings surprises, with an average surprise of 2.93% over the last four quarters [1] - The company has an Earnings ESP of +1.22%, indicating a high likelihood of beating earnings estimates [12]