U.S. Bancorp (USB) Stock: Revenue Hits Record $7.37B and Profit Jumps 23% on Strong Fees and NII Growth

TLDR

• U.S. Bancorp hits record Q4 revenue as NII and fee income accelerate
• Strong margins and fee growth drive 23% profit jump for U.S. Bancorp
• Expanding fee mix helps U.S. Bancorp balance growth as rates ease
• BTIG acquisition positions U.S. Bancorp for stronger capital markets growth
• Stable margins and rising fees set U.S. Bancorp up for steady 2026 growth

U.S. Bancorp (USB) reported solid fourth-quarter momentum as it delivered record revenue and stronger profit growth driven by higher interest income and expanding fee activities. The stock closed at $54.46 after a stable session, and the bank ended the quarter with firm operating metrics. The update showed broad improvements across lending, deposits, and capital markets activity.

U.S. Bancorp, USB

Record Revenue Performance Supports Quarterly Strength

U.S. Bancorp posted fourth-quarter revenue of $7.37 billion as both interest and fee streams strengthened across key business lines. The bank recorded a 23% rise in quarterly profit as wider margins and stronger capital markets activity supported its earnings base. Moreover, non-GAAP earnings reached $1.26 per share and exceeded analyst expectations.

Net interest income increased to $4.31 billion as balance sheet changes and firm lending volumes supported higher returns. The bank achieved a stable net interest margin of 2.8% as lower deposit costs aided performance. Fee revenue climbed to $3.05 billion as capital markets and impact finance businesses generated sustained growth.

The bank reported an improved efficiency ratio of 57.4% as ongoing productivity measures reduced operating pressure. Tangible book value rose to $29.12 per share as capital generation strengthened. Total revenue growth reflected broad gains across interest operations and diversified fee services.

Fee Growth and NII Momentum Strengthen Outlook

U.S. Bancorp advanced its long-term earnings strategy as expanding fee businesses supported revenue stability. The company increased its fee contribution to 42% of total revenue as capital markets and finance units delivered stronger activity. The bank highlighted expanding demand for advisory and payment services across regional segments.

Net interest income gained traction as loan demand firmed following Federal Reserve rate cuts. Deposit costs continued to ease as consumers shifted balances toward core accounts. Moreover, repricing of fixed-rate assets added further support to margin performance.

Profit attributable to the bank reached $2.05 billion as improved returns across loan and fee portfolios supported quarterly gains. The quarter marked a clear step toward a more balanced growth profile. The bank plans to enhance its Wall Street capabilities through its pending BTIG acquisition.

Strategic Expansion Sets the Stage for 2026

U.S. Bancorp continued to strengthen its national footprint as it expanded its advisory and capital markets offerings. The upcoming BTIG acquisition aims to boost equity capital markets and merger advisory services.The bank expects the deal to support broader fee diversification efforts.

The company projects revenue growth between 4% and 6% in 2026 excluding the acquisition. It expects first-quarter net interest income to rise 3% to 4% as loan activity improves.Fee revenue is projected to grow 5% to 6% as market activity stabilizes.

The bank maintains a longstanding presence across 26 states and continues to expand its digital and commercial banking capabilities. U.S. Bancorp strengthened its financial position through steady loan performance and disciplined cost management. The bank ended the year with a clear focus on operational stability and measured growth.

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