U.S. Bancorp third-quarter profit rises to $2.2 billion on record revenue

U.S. Bancorp (USB) said Thursday it earned $2,202 million in the third quarter of 2026, or $1.34 per diluted share, as record net revenue of $7,970 million rose 8.7% from a year earlier. It said in a press release attached to a regulatory filing.

Here's how the company did:

• Net income attributable to U.S. Bancorp: $2,202 million vs. $2,001 million a year earlier
• Diluted earnings per common share: $1.34 vs. $1.22 a year earlier
• Total net revenue: $7,970 million vs. $7,329 million a year earlier
• Noninterest expense: $4,493 million vs. $4,197 million a year earlier

Net income attributable to U.S. Bancorp was $201 million higher than the third quarter of 2025 and $25 million higher than the second quarter of 2026.

Fee revenue rose 14.9% to $3,545 million. Net interest income on a taxable-equivalent basis rose 5.6% to $4,490 million.

Capital markets revenue was $640 million, up 69.3% from a year earlier. The company said the increase was driven mainly by the contribution from BTIG, along with higher syndication and client-related derivative activity.

Chairman and CEO Gunjan Kedia said, "We delivered strong third quarter results." He added that "our exceptional business mix and increasingly strong operating discipline helped us deliver high returns, productivity, and prudent risk management while strengthening revenue growth."

Noninterest expense was $4,493 million, up 7.1% from a year earlier. The company attributed the increase primarily to the BTIG acquisition, higher compensation and employee benefits expense, and higher technology and communications expense.

The provision for credit losses was $654 million, up from $571 million a year earlier. The company said the increase reflected an initial provision of $135 million tied to the purchase of a small business credit card portfolio.

Net charge-offs were $523 million, and the net charge-off ratio was 0.51%, compared with 0.56% a year earlier.

Net interest margin was 2.84%, up from 2.75% a year earlier. The efficiency ratio improved to 55.9% from 57.2%.

Return on tangible common equity was 18.5%, compared with 18.6% a year earlier.

The common equity tier 1 capital ratio was 10.8% at September 30, 2026, compared with 10.9% a year earlier. Total U.S. Bancorp shareholders' equity was $66.4 billion.

The company declared dividends of 54 cents per common share, up from 52 cents a year earlier.

Average total loans were $409.5 billion, up 8.0% from a year earlier. Average total deposits were $526.6 billion, up 2.9%.

Payment Services net income fell to $175 million from $255 million a year earlier. The segment's provision for credit losses rose to $594 million from $409 million.

Wealth, Corporate, Commercial and Institutional Banking net income rose 29.8% to $1,598 million, the company said in the filing.

U.S. Bank completed a live pilot transaction using USBDC, its proprietary U.S. dollar-backed stablecoin, for a cross-border payment between U.S. Bank entities in North America and Europe. The company said the pilot was conducted on the Stellar blockchain.

U.S. Bank also launched two small-business credit cards, Business Essentials and Business Essentials Plus. The Plus card carries a $295 annual fee and can earn up to 3.5% cash back.

The earnings presentation includes guidance for the fourth quarter and full year 2026, with ranges for net interest income, fee revenue and noninterest expense. The company said BTIG is expected to add about $200 million of quarterly net revenue.

Several segment and capital figures are marked preliminary and subject to change before filings with applicable regulatory agencies.

Chairman and CEO Gunjan Kedia and Vice Chair and Chief Financial Officer John Stern will host a conference call at 8 a.m. CT on Oct. 15 to review the results.