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USB U.S. Bancorp (USB) Q3 FY26 earnings call
U.S. Bancorp delivered a strong third quarter, marked by record revenue and significant positive operating leverage, driven by strategic execution across its diversified business mix. The company saw robust loan and deposit growth, alongside an expanding net interest margin, and is focused on strengthening net interest income and margin through asset and funding mix optimization. Management expressed confidence in capital generation and the ability to resume share repurchases in the near term, while continuing to invest in growth initiatives and digital capabilities.
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USB operating KPIs by quarter
| KPI | Dec 2024 Q4 FY24 | Mar 2025 Q1 FY25 | Sep 2025 Q3 FY25 | Dec 2025 Q4 FY25 | Mar 2026 Q1 FY26 | Jun 2026 Q2 FY26 | This call Sep 2026 Q3 FY26 | Change vs prior quarter |
|---|---|---|---|---|---|---|---|---|
| Common equity tier 1 ratio (CET1) | 10.6%On the bottom right of the slide, you can see that our CET1 capital ratio increased 10 basis points from the prior quarter to 10.6%.Source: earnings call transcript | 10.8%Our CET1 capital ratio increased 20 basis points to 10.8% this quarter as we continue to balance ongoing capital accretion with modest share repurchases.Source: earnings call transcript | 10.9%As of September 30, our common equity Tier 1 capital as a percentage of risk-weighted assets was 10.9%, a 20 basis point increase linked quarter.Source: earnings call transcript | 10.8%As of December 31, our common equity Tier 1 capital ratio was 10.8% or 9.3%, including AOCI.Source: earnings call transcript | 10.8%As of March 31, our common equity Tier 1 capital ratio was 10.8%, or 9.3% including AOCI.Source: earnings call transcript | 10.8%As of June 30, our common equity Tier 1 capital ratio was 10.8% or 9.4%, including AOCI.Source: earnings call transcript | 10.8%CET1 ratio remained stable at 10.8% and tangible book value per share was up 5.4% year-over-year.Source: earnings call transcript | 0 pt |
| Return on tangible common equity (ROTCE) | 18.3%On an adjusted basis, we delivered an 18.3% return on tangible common equity and an improved efficiency ratio of 59.9% in the fourth quarter.Source: earnings call transcript | 17.5%In the first quarter, we reported earnings per share of $1.03 and delivered a return on tangible common equity of 17.5%.Source: earnings call transcript | 18.6%As the slide illustrates, each of our key profitability and efficiency ratios improved this quarter, highlighted by a return on average assets of 1.17% and a return on tangible common equity of 18.6%.Source: earnings call transcript | 18.4%This quarter, we delivered a return on tangible common equity of 18.4%, a return on average assets of 1.19% and an efficiency ratio of 57.4% all improvements on a year-over-year basis.Source: earnings call transcript | 17%Disciplined balance sheet management and strong returns drove a return on tangible common equity of 17%, while return on average assets was 1.15% this quarter.Source: earnings call transcript | 18.7%We delivered strong returns, which includes a return on tangible common equity of 18.7% and a return on average assets of 1.26%.Source: earnings call transcript | — | +1.7 pt |
| Common equity tier 1 ratio (CET1) Including AOCI | — | 8.8%Our CET1 ratio, including AOCI, was 8.8%.Source: earnings call transcript | — | 9.3%As of December 31, our common equity Tier 1 capital ratio was 10.8% or 9.3%, including AOCI.Source: earnings call transcript | 9.3%As of March 31, our common equity Tier 1 capital ratio was 10.8%, or 9.3% including AOCI.Source: earnings call transcript | 9.4%As of June 30, our common equity Tier 1 capital ratio was 10.8% or 9.4%, including AOCI.Source: earnings call transcript | 9.1%Adjusting for AOCI, the CET1 ratio declined 30 basis points to 9.1%.Source: earnings call transcript | -0.3 pt |
| Net interest margin | — | — | 2.75%This quarter, we generated a very meaningful 530 basis points of positive operating leverage, a return on average assets of 1.17% and a net interest margin of 2.75%.Source: earnings call transcript | 2.77%Net interest margin increased 2 basis points sequentially to 2.77% as we look to achieve greater margin expansion in the medium term.Source: earnings call transcript | 2.77%Net interest margin was flat linked quarter at 2.77% as core loan growth and stable deposit pricing were offset by elevated mortgage prepayments and somewhat tighter credit spreads.Source: earnings call transcript | 2.79%Net interest margin improved 2 basis points sequentially to 2.79%.Source: earnings call transcript | 2.84%Loans grew 1.0% and deposits grew 2.2% sequentially, while the net interest margin expanded 5 basis points to 2.84%.Source: earnings call transcript | 0 pt |
Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.
Inve summary of the company's earnings call; see how call summaries are prepared. Not investment advice.