10-QPeriod: Q2 FY2025

US BANCORP \DE\ Quarterly Report for Q2 Ended Jun 30, 2025

Filed August 7, 2025For Securities:USBUSB-PHUSB-PPUSB-PRUSB-PQUSB-PSUSB-PA

Summary

U.S. Bancorp (USB) reported solid results for the second quarter and the first six months of 2025, demonstrating growth in key financial metrics. For the second quarter, net income attributable to U.S. Bancorp increased by 13.2% to $1.815 billion, or $1.11 per diluted common share, compared to the prior year. This growth was driven by a 2.0% increase in total net revenue, reaching $7.0 billion, and a 0.8% decrease in noninterest expense to $4.181 billion. The provision for credit losses also saw a decrease of 11.8%. For the first six months of 2025, the company reported a net income attributable to U.S. Bancorp of $3.524 billion, a significant 20.6% increase year-over-year, with diluted earnings per share rising to $2.14. Total net revenue grew by 2.8% to $13.962 billion, while noninterest expense decreased by 3.0% to $8.413 billion. The provision for credit losses was down 7.4%. The bank maintained strong capital ratios, exceeding regulatory requirements, and saw improvements in its efficiency ratio, reflecting effective cost management and operational efficiencies. The company also highlighted growth in its Payment Services segment and continued focus on managing credit risk, with a stable allowance for credit losses.

Financial Highlights

34 data points
Beta

Revenue

$7.00B

Net Income

$1.81B

25.9% Net Margin

EPS (Diluted)

$1.11

Total Assets

$686.37B

Cash & Equivalents

$57.81B

Free Cash Flow

$2.05B

Financial Statements
Beta
Revenue$7.00B
Net Income$1.81B
EPS (Basic)$1.11
EPS (Diluted)$1.11
Shares Outstanding (Basic)1.56B
Shares Outstanding (Diluted)1.56B

Key Highlights

  • 1Net income attributable to U.S. Bancorp increased by 13.2% to $1.815 billion in Q2 2025 and by 20.6% to $3.524 billion in the first six months of 2025.
  • 2Diluted earnings per share grew by 14.4% to $1.11 in Q2 2025 and by 22.3% to $2.14 in the first six months of 2025.
  • 3Total net revenue increased by 2.0% to $7.004 billion in Q2 2025 and by 2.8% to $13.962 billion in the first six months of 2025.
  • 4Noninterest expense decreased by 0.8% to $4.181 billion in Q2 2025 and by 3.0% to $8.413 billion in the first six months of 2025.
  • 5Provision for credit losses decreased by 11.8% in Q2 2025 and by 7.4% in the first six months of 2025.
  • 6Return on average common equity improved to 12.9% in Q2 2025 from 12.4% in Q2 2024.
  • 7Common Equity Tier 1 capital ratio remained strong at 10.7% at June 30, 2025.

Frequently Asked Questions

U.S. Bancorp's total net revenue for the second quarter of 2025 was $7.004 billion, an increase of 2.0% compared to $6.867 billion in the second quarter of 2024. This growth was driven by a 0.7% increase in net interest income and a 3.9% increase in noninterest income.

Noninterest expense decreased by 3.0% to $8.413 billion for the first six months of 2025, compared to $8.673 billion for the same period in 2024. This reduction was primarily attributed to lower compensation and employee benefits expense and other intangibles expense, partially offset by higher technology and communications expense, and also reflects the absence of significant merger and integration charges recorded in the prior year.

The provision for credit losses decreased by 11.8% to $501 million in the second quarter of 2025 and by 7.4% to $1.038 billion in the first six months of 2025, primarily due to loan portfolio sales and improved credit quality. Net charge-offs increased slightly to $554 million in Q2 2025 from $538 million in Q2 2024, and increased to $1.101 billion in the first six months of 2025 from $1.026 billion in the prior year. The allowance for credit losses as a percentage of period-end loans was 2.07% at June 30, 2025, a slight decrease from 2.09% at December 31, 2024.

U.S. Bancorp maintained strong capital ratios, with its Common Equity Tier 1 capital ratio at 10.7% at June 30, 2025, exceeding regulatory 'well-capitalized' requirements. Total U.S. Bancorp shareholders' equity increased to $61.4 billion from $58.6 billion at the end of 2024, primarily due to retained earnings and changes in accumulated other comprehensive income. The company also announced a share repurchase program of up to $5.0 billion, with approximately $4.612 billion remaining at the end of the quarter.