10-QPeriod: Q3 FY2025

US BANCORP \DE\ Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 5, 2025For Securities:USBUSB-PHUSB-PPUSB-PRUSB-PQUSB-PSUSB-PA

Summary

US BancORP \DE\ (USB) reported a strong third quarter of 2025, with net income attributable to US Bancorp shareholders increasing by 16.7% to $2.0 billion, or $1.22 per diluted share. This growth was driven by a robust increase in total net revenue, up 6.8% year-over-year, fueled by a 14.1% rise in noninterest income and a modest 2.0% increase in net interest income. The company also demonstrated effective expense management, with noninterest expense decreasing by 0.2% despite investments in technology. For the first nine months of 2025, net income rose by 19.2%, showcasing sustained profitability and improved efficiency ratios. Asset quality remains stable, with nonperforming assets decreasing by 9.7% and the allowance for credit losses slightly decreasing by 0.4% while still covering nonperforming assets a healthy 490%. Capital ratios remain strong, exceeding regulatory requirements, with Common Equity Tier 1 capital at 10.9%. The company also repurchased approximately $2.2 billion in common stock during the quarter, signaling confidence and a commitment to returning capital to shareholders. Overall, USB delivered a solid financial performance, demonstrating revenue growth, controlled expenses, and sound risk management.

Financial Highlights

35 data points
Beta

Revenue

$7.33B

Net Income

$2.00B

27.3% Net Margin

EPS (Diluted)

$1.22

Total Assets

$695.36B

Cash & Equivalents

$66.64B

Free Cash Flow

$3.39B

Financial Statements
Beta
Revenue$7.33B
Net Income$2.00B
EPS (Basic)$1.22
EPS (Diluted)$1.22
Shares Outstanding (Basic)1.56B
Shares Outstanding (Diluted)1.56B

Key Highlights

  • 1Net income attributable to U.S. Bancorp common shareholders increased by 16.7% to $2.0 billion in Q3 2025, equating to $1.22 per diluted share.
  • 2Total net revenue grew by 6.8% year-over-year to $7.3 billion, driven by a strong 14.1% increase in noninterest income.
  • 3Net interest income on a taxable-equivalent basis increased by 2.0% to $4.3 billion, supported by favorable asset repricing and mix.
  • 4Noninterest expense decreased by 0.2% to $4.2 billion, reflecting effective cost management, with notable decreases in compensation and employee benefits.
  • 5Allowance for credit losses saw a slight decrease of 0.4% to $7.9 billion, while nonperforming assets decreased by 9.7%, indicating stable asset quality.
  • 6Common Equity Tier 1 capital ratio stood strong at 10.9%, well above regulatory requirements.
  • 7Book value per share increased by 9.0% to $36.33, demonstrating growth in shareholder equity.

Frequently Asked Questions

In the third quarter of 2025, US Bancorp reported a net income attributable to U.S. Bancorp common shareholders of $2.0 billion, or $1.22 per diluted share, a significant increase from $1.7 billion, or $1.03 per diluted share, in the same period of 2024. This 16.7% increase in net income was driven by a 6.8% rise in total net revenue to $7.3 billion, fueled by stronger noninterest income and a modest increase in net interest income, while noninterest expense remained stable.

US Bancorp's revenue growth was primarily driven by a strong 14.1% increase in noninterest income, reaching $3.1 billion. This was supported by higher trust and investment management fees, robust capital markets revenue, and increased payment services revenue, all benefiting from business growth and favorable market conditions. Net interest income also contributed positively, increasing by 2.0% to $4.3 billion due to favorable asset repricing and mix.

US Bancorp's credit risk management appears sound. Nonperforming assets decreased by 9.7% to $1.7 billion at September 30, 2025. The allowance for credit losses decreased slightly by 0.4% to $7.9 billion, maintaining a robust coverage ratio of 490% for nonperforming loans. The overall loan portfolio grew by 0.7% to $382.5 billion, with growth in commercial loans offset by decreases in residential mortgages and other retail loans, partly due to portfolio sales.

US Bancorp maintains a strong capital position, with its Common Equity Tier 1 capital ratio at 10.9%, exceeding regulatory requirements. The company also demonstrated its commitment to returning capital to shareholders by repurchasing approximately $2.2 billion of its common stock during the third quarter of 2025, under its previously announced share repurchase program.