U.S. Bancorp third-quarter profit rises 10% to $2.2 billion as fee revenue climbs

U.S. Bancorp said third-quarter net income attributable to the company was $2.2 billion, an increase of 10.0% from a year earlier, as total net revenue rose 8.7% to $7.97 billion and diluted earnings per common share reached $1.34, up 9.8%.

Fee growth and a first full quarter of BTIG

U.S. Bancorp's noninterest income rose 13.1% from a year earlier to $3.48 billion, and total fee revenue climbed 14.9% to $3.55 billion, the release shows. The sharpest move came in capital markets, where revenue reached $640 million, up 69.3% from the third quarter of 2025, after the bank closed its purchase of BTIG and booked a first full quarter of results. The presentation attributes $226 million of fee revenue to BTIG and says capital markets revenue excluding BTIG was still about 10% higher than a year earlier.

Net interest income on a taxable-equivalent basis was $4.49 billion, 5.6% higher than a year earlier and 2.3% above the second quarter, as the net interest margin widened to 2.84% from 2.75% a year earlier and 2.79% in the prior quarter. Total net revenue of $7.97 billion rose 8.7% year-over-year and 3.3% sequentially, a level the release calls a record. Noninterest expense rose 7.1% to $4.49 billion, and the bank reported positive operating leverage of 240 basis points from a year earlier; excluding BTIG, the presentation puts expense growth at 2.0%. The efficiency ratio, a non-GAAP measure, improved to 55.9% from 57.2% a year earlier.

Payment services, whose results appear in the supplemental data filed with the release, generated $1.87 billion of net revenue, up 6.5% from a year earlier.

Gunjan Kedia, chairman and chief executive, said in the release: "We delivered strong third quarter results." She also said: "We reported a full quarter of BTIG results, which drove an increase of 69.3% year-over-year in capital markets revenue."

Provision rises with a card portfolio purchase

The provision for credit losses was $654 million, up 14.5% from $571 million a year earlier and 21.6% above the second quarter. The release attributes both increases primarily to $135 million of initial provision recorded on its purchase of a small business credit card portfolio, partly offset by an improved economic outlook and better credit performance. Net charge-offs of $523 million were below the $536 million recorded in each of the two prior quarters, and the net charge-off ratio improved to 0.51% from 0.56% a year earlier.

The allowance for credit losses rose to $8.17 billion, which the release ties to the initial provision and to $55 million of initial allowance for acquired credit losses on the same portfolio. Nonperforming assets fell 20.0% year-over-year.

Capital holds as the loan book grows

The common equity tier 1 capital ratio was 10.8% at September 30, 2026, unchanged from June 30 and lower than 10.9% a year earlier. Risk-weighted assets increased $12 billion, which the presentation ties partly to the one-time onboarding of a large co-brand partnership, and it states: "Unusual demands on capital in the third quarter not expected to recur". Average total loans grew 8.0% from a year earlier to $409.55 billion and average total deposits rose 2.9% to $526.6 billion, while return on tangible common equity, a non-GAAP measure, was 18.5% against 18.6% a year earlier.

Guidance and the next checkpoint

The presentation's guidance slide frames full-year 2026 total net revenue growth at 8% to 9% against 2025's $28.7 billion, or 6% to 7% excluding BTIG, and says BTIG is expected to add about $200 million of quarterly net revenue. Management hosts a conference call at 8 a.m. CT on October 15, 2026, with Chief Financial Officer John Stern, and the release labels the balance-sheet and capital data preliminary. The next scheduled checkpoints are that call and the company's fourth-quarter results. The filing index lists three exhibits: the earnings release, a supplemental data package and the conference-call presentation.