U.s. Bancorp Perp Pfd Ser A Stock Earnings Reports

U.S. Bancorp reported a strong Q2 2026: EPS $1.35 (+~22% YoY) and record net revenue of $7.7B (+10.1% YoY). Fee income grew materially (44% of revenue; +13.2% YoY including BTIG and ~9.9% ex-BTIG), led by capital markets (including one month of BTIG, which generated ~$98M in June), trust & investment management, payments, and card. Net interest income (FTE) was $4.4B (+7.5% YoY) with NIM up 2 bps sequentially to 2.79%. Loans grew (average loans $405B, +7.1% YoY) with broad-based strength in C&I, CRE and cards; average assets $695B. Credit metrics improved: non-performing assets to loans & ORE at 0.33%, net charge-offs 0.53%, allowance $8B (1.94%). CET1 was 10.8% (9.4% incl. AOCI); tangible book > $30/share (+13% YoY). Expense discipline produced ~400 bps of positive operating leverage this quarter and efficiency ratio improved to 57.1%. Management completed the BTIG acquisition and is integrating it with expectations to grow capital markets to >10% of company revenue over time; they also expect the Amazon small business portfolio to close in mid-August, including a ~$160M reserve build and ~$75–85M of revenue (mostly NII) annualized. Guidance (inclusive of BTIG and partnerships): Q3 NII growth +4–6% YoY, Q3 fee growth +12–14% YoY, Q3 non-interest expense growth ~8% YoY (core ex-BTIG ~3.5%), and full-year 2026 net revenue growth 7–9% (5–7% ex-BTIG). Management reiterated commitment to positive operating leverage, continued investments in consumer branch densification and product suites (Smartly, Business Essentials), and the aim to return capital (ramping buybacks as CET1 approaches ~10% adjusted).