U.S. Bancorp Posts Earnings Beat on Fee Growth and Margin Expansion

U.S. Bancorp (NYSE: USB) reported third-quarter results that topped analyst expectations, driven by broad-based revenue growth, expanding margins, and improved efficiency.

The Minneapolis-based bank posted earnings per share of $1.22, ahead of estimates of $1.12. Revenue hit a record $7.33 billion, exceeding the $7.16 billion consensus forecast and marking a 16.7% year-over-year increase in net income to $2.0 billion.

Fee revenue rose 9.5% from the prior year, while the net interest margin expanded by 9 basis points to 2.75%. The efficiency ratio improved to 57.2%, compared with 60.2% a year earlier, reflecting strong cost control.

Asset quality strengthened, with the net charge-off ratio declining to 0.56% from 0.60% a year ago. The bank’s capital position also improved, as its Common Equity Tier 1 (CET1) ratio rose to 10.9% from 10.5%.

Executives said the performance underscored solid execution across all business segments and positioned the company for continued earnings growth through 2026.