U.s. Bancorp · NYSE:USB
U.s. Bancorp — Q2 2025 Earnings Presentation
43 slides from U.s. Bancorp's earnings presentation, Jul 17, 2025
Slide 1: U.S. Bancorp 2Q25 Earnings Conference Call
July 17, 2025 U.S. Bancorp 2Q25 Earnings Conference Call U.S. Bank | Confidential 1
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: 2Q25 Highlights
2Q25 Highlights $1.11 13% vs 2Q24 (Adj.)1 • Positive operating leverage Earnings Per Share › Four straight quarters of year-over-year revenues outpacing expenses, as adjusted1 18.0% • Prudent expense management Return on Tangible Common › Improving efficiency; Seven consecutive quarters of flat Equi
Slide 4: An Exceptional Banking Franchise
An Exceptional Banking Franchise Fee income represents 42% of Balance sheet3 Clients4 U.S. Bancorp’s total net revenue1 $673B Assets ~13M Consumers As a % of 26% 32% $613B Earning assets ~1.4M Businesses Total Revenue1,2 ■ Payment Services $503B Deposits ~500K Wealth clients 42% ■ Consumer & Busines
Slide 5: Harvesting Our Strategic Investments
Harvesting Our Strategic Investments Digital capabilities are unlocking scalable, long-term productivity Achieving sustainable productivity from an assortment of strategic digital investments 7 consecutive quarters of stable expenses; Positive operating leverage for 4 straight quarters1 Enterprise D
Slide 6: An Attractive and Diversified Portfolio
An Attractive and Diversified Portfolio Business Mix Higher • Business mix provides earnings stability amid Institutional Client continued macro uncertainty Group Investment • A unique, fee income portfolio Wealth Services3 that features businesses Recent Revenue Growth2 Payments supported by new gr
Slide 7: A More Balanced, Higher Quality Revenue Mix
A More Balanced, Higher Quality Revenue Mix Fee Contribution by Business Line Investing to drive a higher fee mix and better quality, as we shift beyond traditional banking products 37% 38% 36% and services to deliver sustainable growth. Payments Our efforts extend beyond... Institutional 26% Consum
Slide 8: Asset Mix Shift Targets Multi-Service Clients
Asset Mix Shift Targets Multi-Service Clients Contributes ~3x more revenue than a single-service client Loan Composition Multi-service client %1 51% 2 42% 43% 47% 35% 3 58% 57% 53% 4 12/31/2015 12/31/2023 6/30/2025 Commercial Real Estate, Mortgage and Other Retail Commercial and Credit Card Advancin
Slide 9: 2Q25 Results Summary
2Q25 Results Summary Income Statement Credit Quality Change vs. Prior Period Change vs. $ in millions, except EPS 2Q25 1Q25 2Q24 (Adj.)1 $ in millions 2Q25 1Q25 2Q24 2 Net interest income $4,080 (1.0) % 0.7 % Nonperforming assets $1,680 (2.7) % (9.3) % Noninterest income 2,924 3.1 3.9 NPA ratio 0.44
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 1.08% 1 12.9% 18.6% 1 1 1.04% 12.6% 12.3% 18.0% 61.0% 60.8% 59.2% 0.98% 17.5% 1 12.4% 18.4% 60.7% 59.2% 0.97% 2.67% 2.72% 2.66% 2Q24 1Q25 2Q25 2Q24
Slide 11: Balance Sheet Summary
Balance Sheet Summary Proactive balance sheet management and pricing discipline Total Average Deposits Total Average Loans $514 $509 $512 $507 $503 $375 $374 $376 $379 $379 6.19% 6.25% 6.03% 5.91% 70% 70% 70% 70% 70% 5.89% 14% 14% 14% 14% 14% 30% 30% 30% 30% 30% 16% 16% 16% 16% 16% 2Q24 3Q24 4Q24 1Q
Slide 12: Net Interest Income
Net Interest Income 2Q25 1Q25 2Q24 Loans $5,548 $5,533 $5,761 Loans held for sale 59 28 41 Investment securities 1,355 1,308 1,294 Other interest income 642 647 889 Total interest income $7,604 $7,516 $7,985 Deposits $2,541 $2,511 $3,028 Short-term borrowings 291 249 296 Long-term debt 721 664 638 T
Slide 13: Noninterest Income
Noninterest Income 2Q25 1Q25 2Q24 Payments $1,108 $1,002 $1,077 Trust and investment management 703 680 649 Service charges 336 315 322 Capital markets revenue 390 382 374 Mortgage banking revenue 162 173 190 Investment product fees 90 87 82 Other 192 197 157 Total fee revenue 2,981 2,836 2,851 Secu
Slide 14: Noninterest Expense
Noninterest Expense 2Q25 1Q25 2Q24 Compensation and benefits $2,600 $2,637 $2,619 Technology and communications 534 533 509 Occupancy and equipment 301 306 316 Professional services 109 98 116 Marketing and business development 161 182 158 All other 476 476 470 1 Total noninterest expense, adjusted
Slide 15: Credit Quality
Credit Quality Credit quality stable-to-improving despite ongoing economic uncertainty Net Charge-offs and Nonperforming Assets Allowance for Credit Losses Change vs. by Loan Category, 2Q25 Amount Reserve 2Q25 1Q25 2Q24 ($B) (%) Nonperforming assets Commercial $2.2 1.5% Balance $1,680 $(47) $(172) C
Slide 16: Capital Management
Capital Management Improved preliminary stress capital buffer; Modest share buybacks this quarter CET1 Ratio1 10.5% 10.6% 10.8% 10.7% 10.3% 7.6% CET1 Ratio Regulatory Minimum 8.5% Binding Capital Constraint 1Q23 2Q24 3Q24 4Q24 1Q25 2Q25 CET1 Ratio 6.5% 8.1% 8.6% 8.6% 8.8% 8.9% Including AOCI 2 2nd Q
Slide 17: Guidance – 3Q and FY 2025
Guidance – 3Q and FY 2025 2Q25 Performance 2Q Guidance 2Q Result Net interest income1 $4.1B to $4.2B $4,080M Total noninterest income ~$2.9B $2,924M Total noninterest expense $4.2B or Lower $4,181M Positive operating leverage2,3 200+ bps 250 bps 3Q25 Guidance FY 2025 Guidance Net interest income1 $4
Slide 18: Marching Towards Our Medium-Term Targets
Marching Towards Our Medium-Term Targets Medium-term 2Q 2024 1Q 2025 2Q 2025 Target5 Return on Average Assets 0.98%1 1.04% 1.08% 1.15% to 1.35% 18.6%1 4 4 Return on Tangible Common Equity 17.5% 18.0% High teens Fee Revenue Growth (YoY)2 3.9%1 5.1% 1 4.6% Mid-single digits 4 4 Efficiency Ratio 60.7%1
Slide 19: Strategically Operating with Urgency
Strategically Operating with Urgency • Diversified revenue mix proved resilient in delivering strong net income growth, despite NII headwinds • A more balanced, higher quality fee mix; Repositioning the balance sheet to boost NII / target multi-service clients • Executing on expense initiatives, org
Slide 20: Appendix
Appendix U.S. Bancorp 20
Slide 21: Income Statement Detail
Income Statement Detail Excluding Notable Notable Items2 Items2 % Change Reported % Change $ in millions, except EPS 2Q25 1Q25 2Q24 vs 1Q25 vs 2Q24 2Q24 vs 2Q24 Net interest income $4,051 $4,092 $4,023 (1.0) % .7 % $— .7 % Taxable-equivalent adjustment 29 30 29 (3.3) — — — Net interest income (taxab
Slide 22: Average Loans
Average Loans Average % of Average Change vs. $379.0 $378.5 $374.7 2Q 2025 Balance Total 1Q25 2Q24 Commercial1 $144 38% 2.6 % 7.1 % Commercial real estate 48 13% (0.9) (7.3) Residential mortgages 116 30% (2.7) (0.7) Credit card 30 8% 0.6 4.4 Other retail 41 11% (1.7) (5.1) Total loans $379 (0.1) % 1
Slide 23: Average Deposits
Average Deposits Average Average Change vs. 2Q 2025 Balance 1Q25 2Q24 $513.9 $506.5 $502.9 Noninterest-bearing deposits $79 (0.7) % (5.2) % Money market savings 177 (9.4) (15.0) Interest checking 132 4.7 4.7 Savings accounts 58 15.7 49.7 Time deposits 57 2.6 (1.1) Total interest-bearing deposits $42
Slide 24: Capital Position
Capital Position $ in billions 2Q25 1Q25 4Q24 3Q24 2Q24 Total U.S. Bancorp shareholders’ equity $61.4 $60.1 $58.6 $58.9 $56.4 Basel III Standardized Approach 1 2 2 2 Fully implemented common equity tier 1 capital ratio 10.7 % 10.8 % 10.5 % 10.5 % 10.2 % Tier 1 capital ratio 12.3 % 12.4 % 12.2 % 12.2
Slide 25: Payment Services
Payment Services Payments Total Net Revenue by Business (2Q25) Highlights 33% • Ranked #1 (up from #2 in 2024) in credit card online banking as per Keynova 2025 rankings Payments: Consumer & Small Business (PCS) Payments: Merchant & Institutional (PMI) • U.S. Bank and Fiserv to introduce agent card
Slide 26: Credit Quality – Commercial
Credit Quality – Commercial Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 2Q24 1Q25 2Q25 Linked Quarter Growth Average loans $134,339 $140,130 $143,817 2.7% (0.9)% 1.7% 3.5% 2.6% 30-89 delinquencies 0.21 % 0.21 % 0.22 % 90+ delinquencies 0.06 % 0.07 % 0.06 % $140,130 $143
Slide 27: Credit Quality – Commercial Real Estate
Credit Quality – Commercial Real Estate Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 2Q24 1Q25 2Q25 Linked Quarter Growth Average loans $52,289 $48,890 $48,466 (1.4)% (1.6)% (3.1)% (2.0)% (0.9)% 30-89 delinquencies 0.04 % 0.12 % 0.23 % 90+ delinquencies 0.02 % 0.01 % 0.2
Slide 28: Credit Quality – Residential Mortgage
Credit Quality – Residential Mortgage Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 2Q24 1Q25 2Q25 Linked Quarter Growth Average loans $116,478 $118,844 $115,616 0.7% 0.9% 0.7% 0.4% (2.7)% 30-89 delinquencies 0.12 % 0.25 % 0.15 % 90+ delinquencies 0.15 % 0.19 % 0.28 % $11
Slide 29: Credit Quality – Credit Card
Credit Quality – Credit Card Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 2Q24 1Q25 2Q25 Linked Quarter Growth Average loans $28,349 $29,404 $29,588 30-89 delinquencies 1.34 % 1.31 % 1.24 % 1.5% 2.3% 1.5% (0.1)% 0.6% 90+ delinquencies 1.30 % 1.40 % 1.24 % $28,349 $28,994
Slide 30: Credit Quality – Other Retail
Credit Quality – Other Retail Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 2Q24 1Q25 2Q25 Linked Quarter Growth Average loans $43,230 $41,760 $41,042 (1.0)% (0.7)% (0.9)% (1.9)% (1.7)% 30-89 delinquencies 0.54 % 0.50 % 0.43 % 90+ delinquencies 0.14 % 0.14 % 0.13 % $43,23
Slide 31: 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 32: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended (Dollars in Millions, Unaudited) June 30, 2025 March 31, 2025 June 30, 2024 Net interest income $ 4,051 $ 4,092 $ 4,023 Taxable-equivalent adjustment (1) 29 30 29 Net interest income, on a taxable-equivalent basis 4,080 4,122 4,052 Net interest income,
Slide 33: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended (Dollars in Millions, Unaudited) June 30, 2025 March 31, 2025 June 30, 2024 Net income applicable to U.S. Bancorp common shareholders $ 1,733 $ 1,603 $ 1,518 Intangibles amortization (net-of-tax) 98 97 113 Net income applicable to U.S. Bancorp common sh
Slide 34: Non-GAAP Financial Measures
Non-GAAP Financial Measures June 30, March 31, December 31, September 30, June 30, (Dollars and Shares in Millions Except Per Share Data, Unaudited) 2025 2025 2024 2024 2024 Total equity $ 61,896 $ 60,558 $ 59,040 $ 59,321 $ 56,885 Preferred stock (6,808) (6,808) (6,808) (6,808) (6,808) Noncontrolli
Slide 35: Non-GAAP Financial Measures
Non-GAAP Financial Measures June 30, March 31, December 31, September 30, June 30, March 31, (Dollars in Millions, Unaudited) 2025 2025 2024 2024 2024 2023 Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected credit
Slide 36: Non-GAAP Financial Measures
Non-GAAP Financial Measures Six Months Ended ($ in millions) June 30, 2025 Line of Business Financial Performance Net Revenue Wealth, Corporate, Commercial and Institutional Banking $ 5,947 Consumer and Business Banking 4,424 Payment Services 3,623 Treasury and Corporate Support (32) Total Company 1
Slide 37: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended June 30, June 30, March 31, March 31, December 31, December 31, (Dollars in Millions, Unaudited) 2025 2024 2025 2024 2024 2023 Net interest income $ 4,051 $ 4,023 $ 4,092 $ 3,985 $ 4,146 $ 4,111 Taxable-equivalent adjustment (1) 29 29 30 30 30 31 Net in
Slide 38: 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) 2024 2023 2024 2023 2024 2023 Net interest income $ 4,135 $ 4,236 $ 4,023 $ 4,415 $ 3,985 $ 4,634 Taxable-equivalent adjustment (1) 31 32 29 34 30 34 Net
Slide 39: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended December 31, December 31, (Dollars in Millions, Unaudited) 2023 2022 Net interest income $ 4,111 $ 4,293 Taxable-equivalent adjustment (1) 31 32 Net interest income, on a taxable-equivalent adjustment basis 4,142 4,325 Net interest income, on a taxable-
Slide 40: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended March 31, March 31, June 30, June 30, (Dollars in Millions, Unaudited) 2025 2024 2024 2023 Noninterest income 2,836 2,700 2,815 2,726 Less: Securities gains (losses), net — 2 (36) 3 Less: Notable items (2) — — — (22) Total noninterest income, excluding
Slide 41: 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. Notable item for the three months ended December 31, 2024 of $109 million ($82 million net-of-tax) included lease impairments and ope
Slide 42: Notes
Notes 1. 2. 3. Includes goodwill related to certain investments in unconsolidated financial institutions per prescribed regulatory requirements. 4. Includes the estimated increase in the allowance for credit losses related to the adoption of the current expected credit losses methodology net of defe
Slide 43: U.S. Bancorp
U.S. Bancorp 43