U.S. Bancorp (USB) Q3 2026 Earnings Call: Record Revenue and Higher Guidance
Source Tradingkey
Key Takeaways
- U.S. Bancorp reported record third-quarter 2026 net revenue of approximately $8 billion, up 8.7% year over year, while diluted EPS increased about 10% to $1.34.
- Fully taxable-equivalent net interest income rose 5.6% year over year and 2.3% sequentially. Net interest margin expanded 5 basis points to 2.84%, and management expects a similar increase in the fourth quarter.
- Fee income grew 14.9% and represented 44% of total revenue. BTIG contributed $226 million of third-quarter fee revenue, while legacy capital markets revenue grew approximately 10%.
- Average loans increased 8.0% year over year and 1.0% sequentially. Average deposits rose 2.9% year over year and 2.2% sequentially, supported by record consumer deposits and relationship-based inflows.
- Credit metrics remained stable: net charge-offs declined 2 basis points sequentially to 0.51%, while nonperforming assets fell 1.6%. The CET1 ratio was unchanged at 10.8%.
- U.S. Bancorp raised its full-year 2026 net revenue growth outlook to 8%-9% and now expects approximately 300 basis points of positive operating leverage.
Key Financial Data
| Metric | Q3 2026 result | Change or context |
|---|---|---|
| Net revenue | Approximately $8 billion | Record level; up 8.7% year over year, or 6.4% excluding BTIG and securities losses |
| Diluted EPS | $1.34 | Up approximately 10% year over year; up 16% excluding a $0.07 reserve-build impact |
| Fee income | Not specified | Up 14.9% year over year; 44% of total revenue |
| Net interest income, FTE | Not specified | Up 5.6% year over year and 2.3% sequentially |
| Net interest margin | 2.84% | Up 5 basis points sequentially |
| Average loans | Not specified | Up 8.0% year over year and 1.0% sequentially |
| Average deposits | Not specified | Up 2.9% year over year and 2.2% sequentially |
| Noninterest expense | Not specified | Up 7.1% year over year; up 2.0% excluding BTIG |
| Net charge-off ratio | 0.51% | Down 2 basis points sequentially |
| CET1 ratio | 10.8% | Stable sequentially |
| AOCI-adjusted CET1 ratio | 9.1% | Down 30 basis points sequentially |
| Tangible common equity ratio | 6.6% | Stable sequentially |
| Tangible book value per share | Not specified | Up 5.4% year over year |
Business and Operating Performance
Disclaimer: For information purposes only. Past performance is not indicative of future results.
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