U.s. Bancorp · NYSE:USB
U.s. Bancorp — Q3 2025 Earnings Presentation
42 slides from U.s. Bancorp's earnings presentation, Oct 16, 2025
Slide 1: U.S. Bancorp 3Q25 Earnings Conference Call
O c t o b e r 1 6 , 2 0 2 5 U.S. Bancorp 3Q25 Earnings Conference Call
Slide 2: Forward-looking Statements and Additional Information
Forward-looking Statements and Additional Information The following information appears in accordance with the Private Securities Litigation Reform Act of 1995: This presentation contains forward-looking statements about U.S. Bancorp. Statements that are not historical or current facts, including st
Slide 3: 3Q25 Highlights
3Q25 Highlights Growth $1.22 $4.25B 9.5% • Top and bottom-line growth driven by a Earnings per share Net Interest 3Q25 Fee Revenue diversified and differentiated revenue mix 18.4% vs. 3Q24 Income1 Growth (YoY) Productivity 530 bps 57.2% • Greater organizational efficiency supported YoY Adjusted Posi
Slide 4: Our Revenue Mix is a Source of Strength
Our Revenue Mix is a Source of Strength Fee income represents ~42% of U.S. Bancorp’s total net revenue1 Fee Income Growth (Adjusted)2 Performance highlights Year-over-year 3Q25 fee revenue growth (year-over-year) 9.5% Fee Growth Target: Mid Single Digits $730M | +9.4% 5.1% 4.6% Trust & Investment Ma
Slide 5: Spotlight on Impact Finance
Spotlight on Impact Finance Driving enterprise value through growth in affordable housing and environmental finance Environmental Affordable Community Finance Business Finance Housing Solutions Mix Greener economy transition Expand access to housing Support LMI development Impact Finance Revenue1 $
Slide 6: Growing Our Consumer Franchise
Growing Our Consumer Franchise Focused actions anchored in creating long-term value Evolving Our Deposit Mix Based on average balance 3Q25 vs. 3Q24 Core Consumer Deposit Strategies Balance Growth $/% 16.5% 16.7% 1. Interconnected Products 18.1% ($7B) / (7%) Deepen relationships through bundled solut
Slide 7: Self-Funding Organic Growth
Self-Funding Organic Growth Balancing our continued growth with productivity 62.5% • AI and automation 61.1% Savings 60.7% 60.8% • Location optimization 60.2% 59.9% 59.2% 530 • Real estate rationalization • Organization simplicity / Other 270 250 57.2% 190 30 • Technology and digital Reinvestment •
Slide 8: Unlocking Our Payments Potential
Unlocking Our Payments Potential Merchant Processing Fee Revenue YoY Growth 5.2% Strategic Initiatives 4.4% 3.5% 3.0% 2.4% Payments: Merchant and Institutional (PMI) 3Q24 4Q24 1Q25 2Q25 3Q25 • Embedded payments (FKA, “Tech-led”) Credit Card Only Fee Revenue • Vertical prioritization / additional sal
Slide 9: 3Q25 Results Summary
3Q25 Results Summary Income Statement Credit Quality Change vs. Change vs. $ in millions, except EPS 3Q25 2Q25 3Q24 $ in millions 3Q25 2Q25 3Q24 Net interest income1 $4,251 4.2 % 2.0 % Nonperforming assets $1,654 (1.5) % (10.5) % Noninterest income 3,078 5.3 14.1 NPA ratio 0.43 % (1) bps (6) bps Non
Slide 10: Performance Ratios
Performance Ratios Return on Return on Return on Efficiency Ratio1 & Average Assets Average Common Equity Tangible Common Equity1 Net Interest Margin 2 1.17% 13.5% 18.6% 60.2% 12.9% 17.9% 18.0% 59.2% 1.08% 12.4% 57.2% 1.03% 2.74% 2.75% 2.66% 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 3Q24 2Q25 3Q25 3Q24 2Q25 3Q2
Slide 11: Balance Sheet Summary
Balance Sheet Summary Total Average Deposits Total Average Loans $509 $512 $507 $503 $512 $374 $376 $379 $379 $379 6.25% 6.03% 5.91% 5.97% 70% 70% 70% 70% 70% 5.89% 14% 14% 14% 14% 14% 30% 30% 30% 30% 30% 16% 16% 16% 16% 16% 3Q24 4Q24 1Q25 2Q25 3Q25 3Q24 4Q24 1Q25 2Q25 3Q25 Noninterest-Bearing Low-C
Slide 12: Net Interest Income
Net Interest Income % Change vs. 3Q25 2Q25 3Q24 Loans $5,688 2.5 % (3.0) % Loans held for sale 35 (40.7) (22.2) Investment securities 1,392 2.7 5.8 Other interest income 812 26.5 (5.9) Total interest income $7,927 4.2 (2.0) Deposits $2,648 4.2 (11.9) Short-term borrowings 328 12.7 15.5 Long-term deb
Slide 13: Noninterest Income
Noninterest Income % Change vs. 3Q25 2Q25 3Q24 Payments $1,098 (.9) % 2.7 % Trust and investment management fees 730 3.8 9.4 Capital markets revenue 434 11.3 9.3 Investment product fees 97 7.8 15.5 Institutional fees 1,261 6.6 9.8 Service charges 333 (.9) 10.3 Mortgage banking revenue 180 11.1 16.1
Slide 14: Noninterest Expense
Noninterest Expense % Change vs. 3Q25 2Q25 3Q24 Compensation and benefits $2,561 (1.5) % (2.9) % Technology and communications 560 4.9 6.9 Occupancy and equipment 300 (.3) (5.4) Professional services 117 7.3 (10.0) Marketing and business development 175 8.7 6.1 All other 484 1.7 12.3 Total nonintere
Slide 15: Credit Quality
Credit Quality Quarterly trends improved despite ongoing macroeconomic uncertainty Net Charge-offs (NCO) and Nonperforming Assets (NPA) Allowance for Credit Losses Change vs. by Loan Category, 3Q25 Amount Reserve 3Q25 2Q25 3Q24 ($B) (%) Nonperforming assets Commercial $2.3 1.5% Balance $1,654 $(26)
Slide 16: Capital Management
Capital Management Modest share repurchases with continued capital accretion through earnings CET Ratio1 10.5% 10.6% 10.8% 10.7% 10.9% 7.1% CET1 Ratio 8.5% Regulatory Minimum Binding Capital Constraint starting in 4Q25 1Q23 3Q24 4Q24 1Q25 2Q25 3Q25 CET1 Ratio 6.5% 8.6% 8.6% 8.8% 8.9% 9.2% Including
Slide 17: Guidance - 4Q 2025
Guidance - 4Q 2025 3Q25 Performance 3Q Guidance 3Q Result Net interest income1 $4.1B to $4.2B $4,251M Total fee revenue ~$3.0B $3,085M Total noninterest expense $4.2B or Lower $4,197M Positive operating leverage2,3 200+ bps 530 bps 4Q25 Guidance Relatively stable Net interest income1 vs. 3Q 2025 Tot
Slide 18: Marching Towards Our Medium-Term Targets
Marching Towards Our Medium-Term Targets Medium-term 3Q 2024 2Q 2025 3Q 2025 Target5 Return on Average Assets 1.03% 1.08% 1.17% 1.15% to 1.35% Return on Tangible Common Equity1 17.9% 18.0% 18.6% High teens Fee Revenue Growth (YoY)2 1.9% 4.6% 9.5% Mid-single digits Efficiency Ratio1 60.2% 59.2% 57.2%
Slide 19: Hitting Our Stride on Execution
Hitting Our Stride on Execution • Building on medium-term targets • Investing for future growth • Maintaining strong expense discipline • Focused on payments transformation • Targeting an earnings distribution of ~75%1 • Committed to restoring investor confidence 1 Distribution reflects dividends an
Slide 20: Appendix
Appendix ©2025 U.S. Bank 20
Slide 21: Income Statement Detail
Income Statement Detail % Change $ in millions, except EPS 3Q25 2Q25 3Q24 vs 2Q25 vs 3Q24 Net interest income $4,222 $4,051 $4,135 4.2 % 2.1 % Taxable-equivalent adjustment 29 29 31 — (6.5) Net interest income (taxable-equivalent basis) 4,251 4,080 4,166 4.2 2.0 Noninterest income 3,078 2,924 2,698
Slide 22: Average Loans
Average Loans Average % of Average Change vs. $378.5 $379.2 $374.1 3Q 2025 Balance Total 2Q25 3Q24 Commercial1 $146 38% 1.4 % 9.5 % Commercial real estate 48 13% (.5) (6.2) Residential mortgages 115 30% (.7) (2.4) Credit card 30 8% 2.2 4.3 Other retail 40 11% (2.3) (6.6) Total loans $379 .2 % 1.4 %
Slide 23: NDFI Transparency
NDFI Transparency Commercial Loan 3Q25 Category Private Equity: Composition Allocation Subscription Lines (e.g., capital call facilities) Inside NDFI: Private Equity Business Credit: 26.9% $45 Business CLOs, Commercial ABS, BDCs Composition Business Consumer Credit: 27.3% Consumer Consumer Auto ABS
Slide 24: Average Deposits
Average Deposits Average Average Change vs. 3Q 2025 Balance 2Q25 3Q24 $508.8 $502.9 $511.8 Noninterest-bearing deposits $80 1.0 % (1.3) % Money market savings 181 2.2 (12.3) Interest checking 131 (.2) 4.5 Savings accounts 63 7.6 70.0 Time deposits 57 .1 (3.2) Total interest-bearing deposits $432 1.9
Slide 25: Capital Position
Capital Position $ in billions 3Q25 2Q25 1Q25 4Q24 3Q24 Total U.S. Bancorp shareholders’ equity $63.3 $61.4 $60.1 $58.6 $58.9 Basel III Standardized Approach 1 2 2 Fully implemented common equity tier 1 capital ratio 10.9 % 10.7 % 10.8 % 10.5 % 10.5 % Tier 1 capital ratio 12.4 % 12.3 % 12.4 % 12.2 %
Slide 26: Payment Services
Payment Services Payments Total Net Revenue by Business (3Q25) Highlights 32% • Elavon and Woo expanded a successful European payments Payments: Consumer & Small Business (PCS) partnership to North America, simplifying merchant Payments: Merchant & Institutional (PMI) experience and providing value-
Slide 27: Credit Quality - Commercial
Credit Quality - Commercial Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 3Q24 2Q25 3Q25 Linked Quarter Growth Average loans $133,138 $143,817 $145,792 (0.9)% 1.7% 3.5% 2.6% 1.4% 30-89 delinquencies 0.25 % 0.22 % 0.19 % 90+ delinquencies 0.07 % 0.06 % 0.06 % $140,130 $143
Slide 28: Credit Quality – Commercial Real Estate
Credit Quality – Commercial Real Estate Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 3Q24 2Q25 3Q25 Linked Quarter Growth Average loans $51,454 $48,466 $48,246 (1.6)% (3.1)% (2.0)% (0.9)% (0.5)% 30-89 delinquencies 0.16 % 0.23 % 0.16 % 90+ delinquencies 0.02 % 0.28 % 0.0
Slide 29: Credit Quality - Residential Mortgage
Credit Quality - Residential Mortgage Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 3Q24 2Q25 3Q25 Linked Quarter Growth Average loans $117,559 $115,616 $114,780 0.9% 0.7% 0.4% (2.7)% (0.7)% 30-89 delinquencies 0.14 % 0.15 % 0.14 % 90+ delinquencies 0.15 % 0.28 % 0.26 % $
Slide 30: Credit Quality - Credit Card
Credit Quality - Credit Card Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 3Q24 2Q25 3Q25 Linked Quarter Growth Average loans $28,994 $29,588 $30,241 30-89 delinquencies 1.47 % 1.24 % 1.34 % 2.3% 1.5% (0.1)% 0.6% 2.2% 90+ delinquencies 1.36 % 1.24 % 1.26 % $28,994 $29,438
Slide 31: Credit Quality - Other Retail
Credit Quality - Other Retail Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 3Q24 2Q25 3Q25 Linked Quarter Growth Average loans $42,925 $41,042 $40,093 (0.7)% (0.9)% (1.9)% (1.7)% (2.3)% 30-89 delinquencies 0.52 % 0.43 % 0.44 % 90+ delinquencies 0.14 % 0.13 % 0.13 % $42,92
Slide 32: Financial Targets
Financial Targets Medium-term1 Key assumptions2 Modest GDP growth ROA 1.15% to 1.35% Stable unemployment rate Moderating inflation ROTCE High teens Current tax policy Fee Income Growth Mid-single digits Fed Funds rate path consistent with market implied Upward sloping yield curve driven by rate cuts
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended (Dollars in Millions, Unaudited) September 30, 2025 June 30, 2025 September 30, 2024 Net interest income $ 4,222 $ 4,051 $ 4,135 Taxable-equivalent adjustment (1) 29 29 31 Net interest income, on a taxable-equivalent basis 4,251 4,080 4,166 Net interest
Slide 34: Non-GAAP Financial Measures
Non-GAAP Financial Measures September 30, June 30, March 31, December 31, September 30, (Dollars and Shares in Millions Except Per Share Data, Unaudited) 2025 2025 2025 2024 2024 Total equity $ 63,798 $ 61,896 $ 60,558 $ 59,040 $ 59,321 Preferred stock (6,808) (6,808) (6,808) (6,808) (6,808) Noncont
Slide 35: Non-GAAP Financial Measures
Non-GAAP Financial Measures September 30, June 30, March 31, December 31, September 30, March 31, (Dollars in Millions, Unaudited) 2025 2025 2025 2024 2024 2023 Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected cr
Slide 36: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, September 30, June 30, June 30, March 31, March 31, (Dollars in Millions, Unaudited) 2025 2024 2025 2024 2025 2024 Net interest income $ 4,222 $ 4,135 $ 4,051 $ 4,023 $ 4,092 $ 3,985 Taxable-equivalent adjustment (1) 29 31 29 29 30 30 Net
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended December 31, December 31, September 30, September 30, June 30, June 30, (Dollars in Millions, Unaudited) 2024 2023 2024 2023 2024 2023 Net interest income $ 4,146 $ 4,111 $ 4,135 $ 4,236 $ 4,023 $ 4,415 Taxable-equivalent adjustment (1) 30 31 31 32 29 3
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended March 31, March 31, December 31, December 31, (Dollars in Millions, Unaudited) 2024 2023 2023 2022 Net interest income $ 3,985 $ 4,634 $ 4,111 $ 4,293 Taxable-equivalent adjustment (1) 30 34 31 32 Net interest income, on a taxable-equivalent adjustment
Slide 39: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended September 30, September 30, June 30, June 30, March 31, March 31, (Dollars in Millions, Unaudited) 2025 2024 2025 2024 2025 2024 Noninterest income $ 3,078 $ 2,698 $ 2,924 $ 2,815 $ 2,836 $ 2,700 Less: Securities gains (losses), net (7) (119) (57) (36)
Slide 40: Notes
Notes 1. Based on a federal income tax rate of 21 percent for those assets and liabilities whose income or expense is not included for federal income tax purposes. 2. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. 3.
Slide 41: Notes
1. 2. 3. Notes 4. 5. 6. Notable items for the three months ended June 30, 2023 of $575 million ($432 million net-of-tax) included $(22) million of noninterest income related to balance sheet repositioning and capital management actions, $310 million of merger and integration-related charges, and $24
Slide 42: Thank you
Thank you ©2025 U.S. Bank | Confidential 42