U.S. Bancorp (NYSE:USB) stock fell on Tuesday after the lender reported fourth-quarter 2025 results.
The company reported fourth-quarter adjusted earnings per share of $1.26, beating the analyst consensus estimate of $1.19. Quarterly sales of $7.337 billion outpaced the Street view of $7.308 billion.
The company’s provision for credit losses for the fourth quarter was $577 million, compared with $571 million in the third quarter of 2025 and $560 million in the fourth quarter of 2024.
The fourth quarter provision was $6 million (1.1%) higher than the third quarter of 2025 and $17 million (3%) higher than the fourth quarter of 2024.
The increase in provision expense year over year was primarily driven by loan portfolio growth, partially offset by lower net charge-offs.
Other Metrics
Net income rose 23.0% year over year to $2.045 billion.
Return on tangible common equity rose to 18.4%, while return on average assets increased to 1.19%. The efficiency ratio improved to 57.4% versus the fourth quarter of 2024.
The company delivered 440 basis points of positive operating leverage, adjusted for prior notable items. Net interest margin rose to 2.77%, up 6 basis points year over year and 2 basis points sequentially.
Noninterest expense remained relatively stable compared to the prior-year period. The CET1 capital ratio stood at 10.8% as of Dec. 31, 2025.
Net interest income on a taxable-equivalent basis rose to $4.31 billion, up from $4.25 billion in the prior quarter and $4.18 billion a year earlier.
Average deposits rose to $515.1 billion from $511.8 billion in the third quarter, while average total loans increased to $384.3 billion from $379.2 billion in the prior quarter.
“Record consumer deposits this quarter and effective balance sheet remixing contributed to net interest income growth and margin expansion. Fee income exceeded our mid-single-digit growth target and was supported by broad strength across our diversified fee businesses,” said CEO Gunjan Kedia.
Important Highlights
U.S. Bancorp signed a definitive deal to buy BTIG, LLC, expanding its investment banking and trading platform. BTIG’s roughly 700 employees across 20 locations will join U.S. Bancorp, and current leadership will stay.
The company expects the transaction to close in the second quarter of 2026, pending regulatory approvals.
U.S. Bank also completed a cross-border stablecoin pilot, signaling readiness for future compliant commercial offerings.
Outlook
U.S. Bancorp forecast fiscal 2026 revenue of $29.85 billion to $30.42 billion, compared with Wall Street expectations of $30.04 billion.
“Looking ahead to 2026, we remain committed to our strategic priorities and medium-term targets as these measures will continue to drive sustainable EPS growth and industry-leading returns,” Kedia added.
USB Price Action: U.S. Bancorp shares were down 3.25% at $52.63 during premarket trading on Tuesday. The stock is approaching its 52-week high of $56.19, according to Benzinga Pro data.
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