U.s. Bancorp · NYSE:USB
U.s. Bancorp — Q4 2025 Earnings Presentation
49 slides from U.s. Bancorp's earnings presentation, Jan 20, 2026
Slide 1: U.S. Bancorp 4Q25 Earnings Conference Call
J a n u a r y 2 0 , 2 0 2 6 U.S. Bancorp 4Q25 Earnings Conference Call ©2025 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: 4Q25 Highlights
4Q25 Highlights Growth • Record quarterly and full-year net revenue $1.26 $4.31B 7.6% Earnings per share Net Interest Income2 4Q25 Fee Revenue driven by NII, consumer deposits, and fee 17.8% vs. 4Q24 adj.1 3.3% vs. 4Q24 Growth vs. 4Q24 income growth Productivity 440 bps 57.4% • Six consecutive quart
Slide 4: 2025 in Review: Restoring Investor Confidence
2025 in Review: Restoring Investor Confidence Executed on three strategic priorities while operating within our medium-term targets 2025 Key Organic Expense Payments Strategic Growth Management Transformation Priorities Medium-term targets1 4Q 2025 Return on Average 1.15% to 1.35% 1.19% Assets Retur
Slide 5: Disciplined Expense Management
Disciplined Expense Management Productivity gains driving consistent positive operating leverage / improving efficiency Adjusted Efficiency Ratio & YoY Operating Leverage 2025 Focus • Expense management strong contributor to positive operating leverage 62.5% • 9 quarters of stable expenses, as adjus
Slide 6: Strong Fee Momentum and Diversified Mix
Strong Fee Momentum and Diversified Mix Fee income represents 42%1 of U.S. Bancorp’s total net revenue Fee Revenue Growth 2025 Focus FY2025 vs. FY2024 • Capital Markets product expansion $174M $126M $243M $209M • Trust & Investments: Exchange-Traded +7.9% +3.0% +6.7% Funds (ETFs) and Private Capital
Slide 7: Compelling Strategic Rationale and Cultural Fit
Compelling Strategic Rationale and Cultural Fit Bolt-on transaction that adds ~$750 million annually of predominantly fee revenues to Global Capital Markets business BTIG's strong equities and advisory capabilities complement top-performing fixed-income oriented business $1.4B of 2025 Global Markets
Slide 8: Spotlight on Global Fund Services
Spotlight on Global Fund Services (GFS) Driving fee revenue growth supported by Exchange Traded Funds (ETF) activity Business Mix ETFs Alternative Investments Registered Funds % of total 2025 25% 33% 42% GFS net revenue 2025 total U.S. market Global Fund Services1 Significant ETF growth in 2025: Net
Slide 9: Early Momentum on Payments Transformation
Early Momentum on Payments Transformation Merchant Processing Fee Revenue YoY Growth 5.2% 4.4% 5.0% 2025 Focus 3.5% 2.4% • Merchant: Embedded payments, focused verticals, direct distribution 4Q24 1Q25 2Q25 3Q25 4Q25 • Card: Interconnected solutions, partnership platforms, California market Credit Ca
Slide 10: Balance Sheet Positioned for Improving NII Growth
Balance Sheet Positioned for Improving NII Growth Net interest income1 ($M) and Net interest margin (%) YoY 2.71% 2.77% 2025 Focus +6 bps $4,176 $4,312 + 3.3% • Consumer deposit growth and more favorable mix shift 4Q24 4Q25 • Improved Commercial and Credit Card loan mix Deposits Average Balances $Bn
Slide 11: Operating within our Target Ranges Drives Growth
Operating within our Target Ranges Drives Growth Adjusted Earnings per Share (EPS) Growth Year-over-year Medium-term Targets1 2 2 18% 18% 17% 2 2 14% 2 Return on Average 13% 12% Assets 1.15% to 1.35% 8% Return on Tangible 1Q25 2Q25 3Q25 4Q25 Common Equity High teens Peer Median 3 Adjusted Pre-Provis
Slide 12: 4Q25 Results Summary
4Q25 Results Summary Income Statement Credit Quality Change vs. Change vs. $ in millions, except EPS 4Q25 3Q25 4Q24 (Adj.) 1 $ in millions 4Q25 3Q25 4Q24 Net interest income2 $4,312 1.4 % 3.3 % Nonperforming assets $1,590 (3.9) % (13.2) % Noninterest income 3,053 (.8) 7.8 NPA ratio 0.41 % (2) bps (7
Slide 13: 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% 1.19% 13.5% 13.5% 18.6% 61.5% 1 18.3% 1 18.4% 12.7% 1 57.2% 57.4% 1 1.03% 59.9% 17.4% 12.1% 0.98% 1 2.75% 2.77% 2.71% 4Q24 3Q25 4Q25 4Q24 3Q25
Slide 14: Balance Sheet Summary
Balance Sheet Summary Total Average Deposits Total Average Loans $512 $507 $503 $512 $515 $376 $379 $379 $379 $384 6.03% 5.91% 5.97% 70% 70% 70% 70% 70% 5.89% 5.80% 14% 14% 14% 14% 14% 30% 30% 30% 30% 30% 16% 16% 16% 16% 16% 4Q24 1Q25 2Q25 3Q25 4Q25 4Q24 1Q25 2Q25 3Q25 4Q25 Noninterest-Bearing Low-C
Slide 15: Net Interest Income
Net Interest Income % Change vs. 4Q25 3Q25 4Q24 Loans $5,599 (1.6) % (1.3) % Loans held for sale 43 22.9 (14.0) Investment securities 1,343 (3.5) 1.3 Other interest income 938 15.5 20.1 Total interest income $7,923 (.1) 1.2 Deposits $2,451 (7.4) (11.6) Short-term borrowings 505 54.0 96.5 Long-term d
Slide 16: Noninterest Income
Noninterest Income % Change vs. 4Q25 3Q25 4Q24 Payments $1,084 (1.3) % 3.9 % Trust and investment management fees 756 3.6 7.5 Capital markets revenue 427 (1.6) 17.3 Investment product fees 101 4.1 16.1 Institutional fees 1,284 1.8 11.3 Service charges 318 (4.5) 1.3 Mortgage banking revenue 130 (27.8
Slide 17: Noninterest Expense
Noninterest Expense % Change vs. 4Q25 3Q25 4Q24 Compensation and benefits $2,529 (1.2) % (3.0) % Technology and communications 584 4.3 9.4 Occupancy and equipment 320 6.7 .9 Professional services 144 23.1 6.7 Marketing and business development 187 6.9 16.9 All other 463 (4.3) 3.1 Total noninterest e
Slide 18: Credit Quality
Credit Quality Asset quality trends are stable-to-improving; Provision increase driven by loan growth Net Charge-offs (NCO) and Nonperforming Assets (NPA) Allowance for Credit Losses Change vs. by Loan Category, 4Q25 Amount Reserve 4Q25 3Q25 4Q24 ($B) (%) Nonperforming assets Commercial $2.3 1.5% Ba
Slide 19: Capital Management
Capital Management Modest share repurchases with continued capital accretion through earnings CET1 Ratio1 10.6% 10.8% 10.7% 10.9% 10.8% 7.1% CET1 Ratio 8.5% Regulatory Minimum Binding Capital Constraint starting in 4Q25 1Q23 4Q24 1Q25 2Q25 3Q25 4Q25 CET1 Ratio 6.5% 8.6% 8.8% 8.9% 9.2% 9.3% Including
Slide 20: 2025 Guidance Scorecard
2025 Guidance Scorecard 4Q25 Performance 4Q Guidance 4Q Result Relatively stable Net interest income1 vs. 3Q 2025 $4,251M $4,312M Total fee revenue ~$3.0B $3,050M +1% to 1.5% $4,227M Total noninterest expense vs. 3Q 2025 +0.7% vs. 3Q 2025 Positive operating leverage2,3 200+ bps 440 bps FY25 Performa
Slide 21: 2026 Outlook
2026 Outlook Guidance excludes the BTIG acquisition, which is expected to add ~$175 - 200M of quarterly net revenue and remain neutral to PPNR post closing in 2026 FY26 Guidance +4% to 6% Total Net Revenue vs. FY25 of $28.7B1,2 Positive operating leverage2,3 200+ bps 1Q26 Guidance +3% to 4% Net inte
Slide 22: Focused on our Medium-Term Targets
Focused on our Medium-Term Targets Medium-term 4Q 2024 3Q 2025 4Q 2025 Target5 1 Return on Average Assets 1.03% 1.17% 1.19% 1.15% to 1.35% 1 4 Return on Tangible Common Equity 18.3% 18.6% 18.4% 4 High teens Fee Revenue Growth (YoY)2 3.6% 9.5% 7.6% Mid-single digits Efficiency Ratio 59.9% 1 57.2% 4 5
Slide 23: Looking ahead to 2026
Looking ahead to 2026 • Committed to delivering consistent, strong EPS growth • Executing on organic growth and payments transformation with meaningful operating leverage and strong risk management • Investing for growth, in particular Technology, Sales and Marketing • Building towards our long-term
Slide 24: Appendix
Appendix ©2025 U.S. Bank 24
Slide 25: Income Statement Detail
Income Statement Detail Excluding Notable Notable Items2 Items2 % Change Reported % Change $ in millions, except EPS 4Q25 3Q25 4Q24 vs 3Q25 vs 4Q24 4Q24 vs 4Q24 Net interest income $4,284 $4,222 $4,146 1.5 % 3.3 % $— 3.3 % Taxable-equivalent adjustment 28 29 30 (3.4) (6.7) — (6.7) Net interest incom
Slide 26: Average Loans
Average Loans $384.3 Average % of Average Change vs. $379.2 $375.7 4Q 2025 Balance Total 3Q25 4Q24 Commercial1 $149 39% 2.2 % 10.1 % Commercial real estate 48 13% .5 (2.8) Residential mortgages 115 30% .5 (2.5) Credit card 31 8% 2.9 5.7 Other retail 41 10% .4 (5.4) Total loans $384 1.4 % 2.3 % 4Q24
Slide 27: NDFI Portfolio - Well Diversified, Strong Credit Quality
NDFI Portfolio - Well Diversified, Strong Credit Quality Commercial Loan Category Allocation & Composition Credit Category Rating1 Private Equity: Subscription Lines (e.g., capital call facilities) $50 Private Equity A+ 29.4% Business Credit: Business AA- CLOs, Commercial ABS, BDCs 26.5% Consumer AA
Slide 28: Average Deposits
Average Deposits Average Average Change vs. 4Q 2025 Balance 3Q25 4Q24 $512.3 $511.8 $515.1 Noninterest-bearing deposits $83 4.3 % .5 % Money market savings 186 2.8 (9.9) Interest checking 131 (.2) 4.8 Savings accounts 64 2.6 55.8 Time deposits 51 (11.4) (10.7) Total interest-bearing deposits $432 —
Slide 29: Capital Position
Capital Position $ in billions 4Q25 3Q25 2Q25 1Q25 4Q24 Total U.S. Bancorp shareholders’ equity $65.2 $63.3 $61.4 $60.1 $58.6 Basel III Standardized Approach 1 2 Fully implemented common equity tier 1 capital ratio 10.8 % 10.9 % 10.7 % 10.8 % 10.5 % Tier 1 capital ratio 12.3 % 12.4 % 12.3 % 12.4 % 1
Slide 30: BTIG: Client Base and Revenue Durability
BTIG: Client Base and Revenue Durability Diversified and balanced product mix with broad industry sector coverage Sectors: Consumer & Retail Energy & Infrastructure ~$750M Financial Services 2025 Estimated Healthcare Adj. Net Revenue Diversified Industrials Real Estate & Home Building Technology, Me
Slide 31: Payment Services
Payment Services Payments Total Net Revenue by Business (4Q25) Highlights 31% • Launched “Edward Jones Everyday Solutions powered by U.S. Bank”, a suite of cobranded checking and credit card Payments: Consumer & Small Business (PCS) products to help clients manage spending and investments in Payment
Slide 32: Credit Quality - Commercial
Credit Quality - Commercial Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 4Q24 3Q25 4Q25 Linked Quarter Growth Average loans $135,384 $145,792 $149,014 1.7% 3.5% 2.6% 1.4% 2.2% 30-89 delinquencies 0.26 % 0.19 % 0.29 % 90+ delinquencies 0.07 % 0.06 % 0.06 % $143,817 $145,7
Slide 33: Credit Quality – Commercial Real Estate
Credit Quality – Commercial Real Estate Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 4Q24 3Q25 4Q25 Linked Quarter Growth Average loans $49,871 $48,246 $48,490 (3.1)% (2.0)% (0.9)% (0.5)% 0.5% 30-89 delinquencies 0.16 % 0.16 % 0.10 % 90+ delinquencies 0.02 % 0.04 % 0.03
Slide 34: Credit Quality - Residential Mortgage
Credit Quality - Residential Mortgage Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 4Q24 3Q25 4Q25 Linked Quarter Growth Average loans $118,406 $114,780 $115,390 0.7% 0.4% (2.7)% (0.7)% 0.5% 30-89 delinquencies 0.16 % 0.14 % 0.18 % 90+ delinquencies 0.17 % 0.26 % 0.25 % $
Slide 35: Credit Quality - Credit Card
Credit Quality - Credit Card Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 4Q24 3Q25 4Q25 Linked Quarter Growth Average loans $29,438 $30,241 $31,119 30-89 delinquencies 1.41 % 1.34 % 1.30 % 1.5% (0.1)% 0.6% 2.2% 2.9% 90+ delinquencies 1.43 % 1.26 % 1.26 % $30,241 $31,119
Slide 36: Credit Quality - Other Retail
Credit Quality - Other Retail Average Loans ($M) and Net Charge-offs Ratio Key Statistics $ in millions 4Q24 3Q25 4Q25 Linked Quarter Growth Average loans $42,556 $40,093 $40,272 (0.9)% (1.9)% (1.7)% (2.3)% 0.4% 30-89 delinquencies 0.54 % 0.44 % 0.46 % 90+ delinquencies 0.15 % 0.13 % 0.13 % $42,556
Slide 37: Financial Targets
Financial Targets Medium-term1 Key assumptions2 Modest GDP growth Return on Average Assets 1.15% to 1.35% Stable unemployment rate Return on Tangible Moderating inflation Common Equity High teens Current tax policy Fee Income Growth (YoY) Mid-single digits Fed Funds rate path consistent with market
Slide 38: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended (Dollars in Millions, Unaudited) December 31, 2025 September 30, 2025 March 31, 2025 December 31, 2024 Net interest income $ 4,284 $ 4,222 $ 4,092 $ 4,146 Taxable-equivalent adjustment (1) 28 29 30 30 Net interest income, on a taxable-equivalent basis 4
Slide 39: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended (Dollars in Millions, Unaudited) December 31, 2025 September 30, 2025 December 31, 2024 Net income applicable to U.S. Bancorp common shareholders $ 1,965 $ 1,893 $ 1,581 Intangibles amortization (net-of-tax) 100 99 110 Net income applicable to U.S. Banc
Slide 40: Non-GAAP Financial Measures
Non-GAAP Financial Measures December 31, September 30, June 30, March 31, December 31, (Dollars and Shares in Millions Except Per Share Data, Unaudited) 2025 2025 2025 2025 2024 Total equity $ 65,651 $ 63,798 $ 61,896 $ 60,558 $ 59,040 Preferred stock (6,808) (6,808) (6,808) (6,808) (6,808) Noncontr
Slide 41: Non-GAAP Financial Measures
Non-GAAP Financial Measures December 31, September 30, June 30, March 31, December 31, March 31, (Dollars in Millions, Unaudited) 2025 2025 2025 2025 2024 2023 Common equity tier 1 capital, determined in accordance with transitional regulatory capital requirements related to the current expected cre
Slide 42: 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) 2025 2024 2025 2024 2025 2024 Net interest income $ 4,284 $ 4,146 $ 4,222 $ 4,135 $ 4,051 $ 4,023 Taxable-equivalent adjustment (1) 28 30 29 31 29 2
Slide 43: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended March 31, March 31, December 31, December 31, September 30, September 30, (Dollars in Millions, Unaudited) 2025 2024 2024 2023 2024 2023 Net interest income $ 4,092 $ 3,985 $ 4,146 $ 4,111 $ 4,135 $ 4,236 Taxable-equivalent adjustment (1) 30 30 30 31 31
Slide 44: 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) 2024 2023 2024 2023 2023 2022 Net interest income $ 4,023 $ 4,415 $ 3,985 $ 4,634 $ 4,111 $ 4,293 Taxable-equivalent adjustment (1) 29 34 30 34 31 32 Net in
Slide 45: Non-GAAP Financial Measures
Non-GAAP Financial Measures Year Ended December 31, December 31, (Dollars in Millions, Unaudited) 2025 2024 Net interest income $ 16,649 $ 16,289 Taxable-equivalent adjustment (1) 116 120 Net interest income, on a taxable-equivalent adjustment basis 16,765 16,409 Net interest income, on a taxable-eq
Slide 46: Non-GAAP Financial Measures
Non-GAAP Financial Measures Three Months Ended December 31, December 31, June 30, June 30, (Dollars in Millions, Unaudited) 2025 2024 2025 2024 Net income applicable to U.S. Bancorp common shareholders (a) $ 1,965 $ 1,581 $ 1,733 $ 1,518 Less: Notable items, including the impact of earnings allocate
Slide 47: 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 items for the year-ended December 31, 2024 included $109 million of lease impairments and operational efficiency actions, $15
Slide 48: 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 49: Thank you
Thank you ©2025 U.S. Bank | Confidential 49