U.S. Bancorp (USB) reported better-than-forecast results

📌 U.S. Bancorp (USB) reported better-than-forecast results for the first quarter, with revenue of $6.96 billion.

U.S. Bancorp posted impressive results for the first quarter of 2025, with net income of $1,709 million, up 29.6% year-over-year. Diluted EPS reached $1.03, beating market forecasts ($0.9821). . Frax share

U.S. Bancorp posted impressive results for the first quarter of 2025, with net income of $1,709 million, up 29.6% year-over-year. Diluted EPS reached $1.03, beating market forecasts ($0.9821).

This improved performance was driven by higher total net sales, lower non-interest expenses and lower provision for credit losses. The company’s total net revenue for the quarter was $6,958 million, slightly above expectations of $6.91 billion, indicating a 3.6% year-over-year increase. Net interest income (including taxable equivalent) grew 2.7% due to a favorable mix of earning assets and loan growth, despite the challenges of a changing deposit mix.

Compared to the previous quarter, U.S. Bancorp’s performance also improved. Net income increased by $46 million from the fourth quarter of 2024, and diluted earnings per share increased from $1.01. The efficiency ratio improved to 60.8% from 61.5% in the previous quarter, indicating effective expense management. The company’s net interest margin increased slightly to 2.72% from 2.71% in the previous quarter.

Non-interest income reached $2,836 million in the first quarter of 2025, up 5.0% from a year earlier, driven by growth in payment services revenue and trust and investment management fees. However, there was a slight decrease in non-interest income compared to the fourth quarter of 2024, primarily due to a seasonal decline in card transaction revenues.

Nevertheless, the company’s strategic initiatives to expand its product offerings, such as new credit cards and business solutions, contributed to revenue growth and strengthened its market position.

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Looking ahead, U.S. Bancorp remains positive for the remainder of 2025 despite the current economic uncertainty. The company is prioritizing maintaining effective risk and capital management practices. The Tier 1 capital ratio increased to 10.8% at the end of March 2025 from 10.6% at the end of December 2024, underscoring the company’s strong capital position.