U.S. Bancorp shares fall over 2% as revenue misses estimates despite earnings beat

Published 17/07/2025, 12:28
 U.S. Bancorp shares fall over 2% as revenue misses estimates despite earnings beat

NEW YORK - On Thursday, U.S. Bancorp (BVMF:USBC34) reported second-quarter earnings that exceeded analyst expectations.

The company’s shares fell 2.69% in pre-market trading following the results as revenue came in below forecasts.

The Minneapolis-based bank posted earnings per share of $1.11 for the second quarter, surpassing the analyst estimate of $1.07. However, revenue of $6.96 billion fell short of the $7 billion consensus estimate, disappointing investors.

Net income rose 13.2% year-over-year to $1.82 billion compared to $1.6 billion in the same quarter last year. The bank achieved a return on tangible common equity of 18% and a return on average assets of 1.08%.

"In the second quarter we posted diluted earnings per share of $1.11, delivered a return on tangible common equity of 18% and posted a return on average assets of 1.08%," said Gunjan Kedia, President and CEO of U.S. Bancorp. "Importantly, year-over-year top-line revenue growth, coupled with our continued expense discipline, resulted in 250 basis points of positive operating leverage."

Fee income was a bright spot, increasing 4.6% year-over-year, now representing approximately 42% of company-wide revenue. Payment services revenue, trust and investment management fees, and treasury management fees led the growth.

The bank’s net interest margin was 2.66%, down slightly from 2.67% in the second quarter of 2024 and from 2.72% in the first quarter of 2025. Average total loans increased 1% year-over-year to $378.5 billion, while average total deposits decreased 2.1% to $502.9 billion.

Credit quality remained stable with a net charge-off ratio of 0.59%, unchanged from the previous quarter. The bank’s Common Equity Tier 1 capital ratio stood at 10.7% at the end of June.

"Our diversified business mix and sound risk management culture remain strengths, especially at a time of economic volatility," Kedia added.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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