US Bancorp : Q1 2026 U.S. Bancorp Earnings Conference Call Presentation

Published: 2026-04-16 06:48:17 ET USB

Published on 04/16/2026 at 06:48 am EDT

A p r i l 1 6 , 2 0 2 6

U.S. Bancorp

1Q26 Earnings Conference Call

1Q26 Highlights

Growth

Top-line YoY revenue growth supported by strong loan growth, consumer deposit momentum, and sustained fee-based growth

Earnings per share 14.6% vs. 1Q25

Net Interest Income1 Growth vs. 1Q25

Fee Revenue Growth vs. 1Q25

Productivity

Continued expense discipline supporting seven consecutive quarters of positive operating leverage, as adjusted

Returns

Positive Operating Leverage2 vs. 1Q25

Efficiency Ratio2

-260 bpsvs. 1Q25

Strong profitability driven by disciplined balance sheet actions and a diversified mix of net interest income and fee-based revenue

Risk & Financial Management

Asset quality metrics in line with expectations and strong capital levels

Net Charge-off Ratio

CET1 Capital Ratio3

Return on Tangible Common Equity2

Return on Average Assets

Net Interest Margin

1Taxable-equivalent basis; Non-GAAP; see appendix for calculation. 2Non-GAAP; see appendix for calculations. 3Common equity tier 1 capital to 3

risk-weighted assets.

Growing our Business Banking Franchise

Small Businesses represent 40%+ of U.S. GDP and employment

FY 2025 % of Revenue by Product

Other

Merchant

16% 7% CAGR1

Deposit

1.40M

1.14M 48%

2023 2026

Credit 18% USB small business

Card clients 2

10%

Lending

9% of U.S. Bancorp FY 2025 revenue

Fee revenue CAGR3 SBA lender in 22 states4

Small Business Revenue Mix

Our Strategy

Faster product launches with dedicated operating model

Continued investment in differentiated solutions

across payments, banking, and lending

Business Essentials bundles

Embedded digital capabilities (e.g., Spend Management, Bill Pay for Business, Payroll)

Merchant services and small business cards

Lending capabilities (e.g., SBA, healthcare)

Amazon Small Business co-brand partnership

meaningfully expands reach and payments opportunity

Expected to convert in Q3 2026

Unique co-brand; anticipated banking expansion

¹ CAGR based on 2/28/2023 to 2/28/2026. 2 Small business clients from 2/28/2023 to 2/28/2026. 3 CAGR based on FY 2023 to FY 2025. 4 Based 4

on FY 2025 7(a) Lender Report.

California as a Growth Engine

MUFG Union Bank acquisition revenue synergies are driving growth in California

California1

Small business concentration3

0 85K

$4.1T+ GDP | ~40M consumers |

~4.3M small businesses

USB branches USB client centers

CA Growth over Franchise4

Business clients

growth rate

1.2X

franchise

Business deposits

growth rate

1.6X

franchise

Business card client

growth rate

2.2X

franchise

Business banking merchant revenue

growth rate

1.4X

franchise

1 U.S. Bureau of Economic Analysis (BEA), Census, SBA. 2 SNL Market Share as of April 2026. 2025 Pro-Forma Retail Bank. Includes active, closed, and

de novo branches. Deposits capped at $1B. 3 Within 200 mile radius. 4 Feb 2024-Feb 2026 CAGR for California vs. overall USB performance. Business 5

Banking merchant revenue is based on rolling 12 months through Feb 2024 vs. rolling 12 months through Feb 2026.

Momentum building across Payments

Broad based strength across payment categories as we transform the business

Double digit new account growth over the last 4 quarters a leading indicator for continued growth

1Q26 new account acquisition up 18% YoY

Merchant Processing YoY Fee Revenue

$436M 1Q26 Reported Fee Revenue

5.2%

4.4%

3.5%

5.0%

5.1%

1Q25

2Q25

3Q25

4Q25

1Q26

Consistent execution, durable growth

Mid-single digit fee revenue growth remains steady

Strategic initiatives gaining traction across the business

Corporate Payment Products & Prepaid YoY Fee Revenue

$217M 1Q26 Reported Fee Revenue

1.9%

(0.5)%

(1.3)%

0.0%

(3.5)%

1Q25

2Q25

3Q25

4Q25

1Q26

New business wins increasingly contributing to results

Encouraging early signs of spend stabilization

1Q26

4Q25

3Q25

2Q25

1Q25

4.4%

4.2%

5.6%

5.3%

Credit Card Only YoY Fee Revenue

$263M 1Q26 Reported Fee Revenue

5.2%

Growth Momentum

Key partnerships to drive strategic priorities

Capital markets

fee growth

Payments

transformation

Consumer franchise growth

Acquisition

Partnership

~$75-$85M in revenue per quarter included in guidance

Partnership

~$75C-o$s8t5inMcliundreedveinnugeuipdearnqcuearter

included in guidance

200+ million fans

1Q26 Results Summary

Income Statement

Credit Quality

$ in millions, except EPS

1Q26

Change vs.

4Q25

1Q25

Net interest income1

$4,291

(.5)

4.1

Noninterest income

2,997

(1.8)

5.7

Noninterest expense

4,265

Net income to company

1,945

(4.9)

13.8

Diluted EPS

$1.18

(6.3)

14.6

Change vs.

$ in millions

1Q26

4Q25

1Q25

Nonperforming assets

$1,528

(3.9)

(11.5) %

NPA ratio

0.38 %

(3) bps

(7) bps

Net charge-off ratio

0.56 %

2 bps

(3) bps

90+ day delinquency

0.21 %

(1) bps

- bps

Balance Sheet

change vs.

Ending balance Avg balance Average Period Balance

$ in billions 1Q26 1Q26 4Q25 1Q25

Capital

Change vs.

1Q26 4Q25 1Q25

Total assets Earning assets Total loans

$701.0 $688.3 .7 % 2.8 %

635.1 624.2 .6 2.3

399.8 393.6 2.4 3.8

CET1 capital ratio2 10.8 % - bps - bps Total risk-based capital ratio 14.2 % - bps (20) bps Book value per share $37.93 1.0 % 11.0 %

Total deposits 528.2 515.1 - 1.7

Tangible book value per share3 $29.56 1.5 % 15.3 %

Earnings returned (millions)4 $1,091

1 Taxable-equivalent basis; Non-GAAP; see appendix for calculation. 2 Common equity tier 1 capital to risk-weighted assets. 3 Non-GAAP; see appendix for calculations. 4 Earnings returned (millions) = total common dividends paid and aggregate value of common shares repurchased inclusive of treasury shares 8

repurchased in connection with stock compensation plans

Performance Ratios

Constructive trends reflective of Q1 seasonality

Return on Average Assets

Return on Average Common Equity

Return on Tangible Common Equity1

Efficiency Ratio1 & Net Interest Margin 2

+11 bps

Year-over-year

+30 bps

Year-over-year

-50 bps

Year-over-year

-260 bps

Efficiency Ratio

+5 bps

Net Interest Margin

Year-over-year

1.19%

1.15%

1.04%

13.5%

12.3%

12.6%

17.5%

18.4%

17.0%

60.8%

57.4%

58.2%

2.77%

2.72%

1Q25 4Q25 1Q26

1 Non-GAAP; see appendix for calculations 9

2 Net interest margin on a taxable-equivalent basis; see appendix for calculations

Return on Tangible Common Equity

Consistent performance as tangible common equity has strengthened

Historical Performance & Growth in TCE

17.4% 18.6% 17.9% 18.3% 17.5% 18.0% 18.6% 18.4% 17.0%

Positioned to deliver high-teens ROTCE through medium-term3:

Accelerating revenue growth

$35 $36

$38

$39

$41

$43

$45

$46

momentum

Maintaining expense discipline while investing for growth

1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26

Average Tangible Common Equity (TCE), in billions1Return on Tangible Common Equity (ROTCE), as adjusted 2

TCE stabilizing with moderating capital build and more normalized deployment

Strong net income generation during this period has offset 31% TCE growth since 1Q24

1 Non-GAAP; see appendix for calculations; 2 Non-GAAP; adjusted for notable items; see appendix for calculations and description of notable items; 10

3 Medium-term represents 2026 and 2027

Balance Sheet Summary

Robust loan growth and strategic portfolio remixing driving year-over-year growth

Total Average Deposits

Total Average Loans

$507

$503

$512

$515

$243

$237

$244

$245

$264

$266

$268

$270

1Q25

2Q25

3Q25

4Q25

1Q26

$379 $379 $379 $384 $394

5.91%

5.89%

5.97%

5.80%

5.69%

1Q25

2Q25

3Q25

4Q25

1Q26

2.39%

2.41%

2.43%

2.25%

2.13%

1Q25 2Q25 3Q25 4Q25 1Q26

Avg. Yield % Interest-bearing

deposits

1Q26 Highlights

Investment Portfolio

End of Period Balances 2

$171 $174 $171 $171 $174

3.10% 3.18% 3.26% 3.16% 3.08%

Average consumer deposits grew 2.7% year-over-year; Another record quarter

Average loan growth of 3.8% year-over-year or 5.3%3 when adjusted for 2Q25 loan sales

1Q25 2Q25 3Q25 4Q25 1Q26

$ in billions 11

1 Consumer includes Wealth. 2 Balances exclude unrealized gains (losses). 3 Non-GAAP; reflects strategic loan sales of $5.5 billion in 2Q25.

1Q26

4Q25

1Q25

Loans

$5,526

(1.3)

(.1)

Loans held for sale

(18.6)

25.0

Investment securities

1,303

(3.0)

(.4)

Other interest income

974

3.8

50.5

Total interest income

$7,838

(1.1)

4.3

Deposits

$2,284

(6.8)

(9.0)

Short-term borrowings

645

27.7

Long-term debt

646

(5.4)

(2.7)

Total interest expense

$3,575

(1.8)

4.4

Net interest income

$4,263

(.5)

4.2

Taxable-equivalent adjustment

(6.7)

Net interest income, on a taxable-equivalent basis

$4,291

(.5)

4.1

Net interest margin (taxable-equivalent basis)

2.77 %

bps

Year-over-year increase in net interest income primarily driven by loan growth, improved earning asset mix, and fixed asset repricing

Linked quarter net interest income decrease driven by fewer days in the quarter and deposit seasonality, partially offset by loan growth

nm = not meaningful

Net Interest Income

Improved earnings asset mix, loan growth and fixed asset repricing

% Change vs.

1Q26

% Change vs.

4Q25

1Q25

Payments

$1,235

(2.2)

3.9

Trust and investment management fees

745

(1.5)

9.6

Capital markets revenue

377

(3.1)

29.1

Investment product fees

(4.0)

11.5

Institutional fees

1,219

(2.2)

15.1

Lending and deposit-related fees

294

(2.6)

10.5

Mortgage banking revenue

161

23.8

(6.9)

Other

123

12.8

(17.4)

Consumer / Other

578

6.8

(1.7)

Total fee revenue

3,032

(.6)

6.9

Securities gains (losses), net

(35)

Noninterest Income

$2,997

(1.8)

5.7

Year-over-year increase driven by broad-based growth across most fee categories

On a linked quarter basis, noninterest income decreased driven by seasonally lower card revenue and capital markets revenue, partially offset by higher mortgage banking revenue

nm = not meaningful

Noninterest Income

Broad-based momentum across all fee businesses

1Q26

4Q25

1Q25

Compensation and benefits

$2,628

3.9

(.3)

Technology and communications

573

(1.9)

7.5

Occupancy and equipment

304

(5.0)

(.7)

Professional services

(36.1)

(6.1)

Marketing and business development

217

16.0

19.2

All other

451

(2.6)

(5.3)

Total noninterest expense

$4,265

Year-over-year increase in noninterest expense primarily driven by marketing initiatives and technology investments, partially offset by operational efficiencies in compensation expense and other noninterest expense

On a linked quarter basis, increase in noninterest expense driven by seasonally higher compensation expense and higher marketing expense, partially offset by lower net occupancy and equipment, lower professional services, and lower other expense

Noninterest Expense

Investing for growth while delivering significant productivity gains

% Change vs.

Disciplined Expense Management

Productivity driving consistent positive operating leverage and improving efficiency

Expense discipline is now embedded in how we run the company, with seven consecutive quarters of positive operating leverage, as adjusted

Improved efficiency ratio in the mid-to-high 50s, reflecting the benefits of sustained cost discipline and continued revenue growth

Ongoing productivity gains from technology enablement and strategic expense initiatives create capacity to reinvest while sustaining leverage

1 Non-GAAP; excludes notable items for applicable periods; see appendix for calculations and description of notable items. 15

YoY Operating Leverage (bps)

Efficiency Ratio

4Q23 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26

(420)

(470)

(230)

57.2% 57.4%

58.2%

250

190

270

440 440

59.2% 530

60.8%

60.2% 59.9%

60.7%

61.1%

62.5%

Adjusted Efficiency Ratio & YoY Operating Leverage1

Credit Quality

Asset quality trends stable-to-improving; YoY provision increase driven by loan growth

Change vs.

1Q26

4Q25

1Q25

Nonperforming assets

Balance

$1,528

$(62)

$(199)

NPAs/period-end loans plus OREO

0.38 %

(3) bps

(7) bps

Net charge-offs

NCOs

$546

$19

$(1)

NCOs/avg loans

0.56 %

2 bps

(3) bps

Net Charge-offs (NCO) and Nonperforming Assets (NPA)

Provision for Credit Losses

$547

$35

$50

$546

$30

2.07%

2.00%

2.03%

2.06%

2.07%

$527

$536

$554

$537 $501 $571 $577 $576

Allowance for Credit Losses

Amount ($B)

Reserve (%)

Commercial

$1.8

1.2%

Commercial real estate

1.3

2.5%

Residential mortgage

.6%

Credit card

3.4

8.9%

Other retail

2.1%

Total

$8.0

2.0%

by Loan Category, 1Q26

Highlights

$(10)

$(53)

$30M reserve build reflects loan portfolio growth

CECL forecasted peak unemployment rate of 5.9%

Net charge-off ratio decreased 3 bps YoY

1Q25 2Q25 3Q25 4Q25 1Q26

Reserve Build (Release)

$ in millions, unless specified 16

NDFI Business Credit Intermediaries Overview

$1.9

$1.8

$1.0

$0.3

Business NDFI Composition ($B)

Limited exposure to BDCs with structural protections across the portfolio

C&I

Total Loans ($B)

$246

$104

$37

NDFI

$13

3/31/2026

$8.3

3/31/2026

NDFI Business Credit Intermediaries Products

CDF | A+ | 0.1% of total loans

Predominantly first lien; 65-75% effective advance rates; diversification limits with lender valuation rights

BDCs | BBB | 0.2% of total loans

Exposure to top-tier managers, with top 10 BDCs representing

~71% of the portfolio; primarily first lien; diversification limits;

<50% effective advance rate

Commercial Leasing / Other | BBB - | 0.4% of total loans Predominantly traditional C&I lending to commercial leasing companies

Commercial ABS | A | 0.5% of total loans

Structured credit with ~85% effective advance rate; diversified across products; 3-4x expected loss coverage

BSL CLOs | AAA | 2.1% of total loans

Highly diversified with no industry exposure >12%; ~95% first-lien collateral; ~65% effective advance rate

NDFI = Non-Depository Financial Institution, C&I = Commercial and Industrial, BSL CLOs = Broadly Syndicated Loan Collateralized Loan

Obligation, ABS = Asset Backed Securities, BDC = Business Development Corporation, CDF = Corporate Debt Facilities 17

Credit Category Rating is based on internal ratings mapped to external S&P equivalent ratings

Capital Management

Modest share repurchases with continued capital accretion through earnings

CET1 Ratio

7.1% CET1 Ratio Regulatory Minimum Binding Capital Constraint starting in 4Q25

6.5%

8.8%

8.9%

9.2%

9.3%

CET1 Ratio Including AOCI 2

Common Equity Tier 1 capital ratio was flat linked quarter as earnings generation was offset by capital distribution and strong loan growth

Including AOCI, CET1 was 9.3%2 as of March 31, 2026

Completed common stock repurchases of $200 million

1st Quarter Highlights

1 1Q23 ratios calculated in accordance with transitional regulatory requirements related to the CECL methodology 18

2 Non GAAP; see appendix for calculations

1Q231

1Q25

2Q25

3Q25

4Q25

1Q26

8.5%

10.8%

10.7%

10.9%

10.8%

Impact of Proposed Basel III Finalization

Current proposal supports return to normalized capital deployment

Risk Weighted Assets (RWA)

Pro Forma Impact of RWA Methodology

Key Takeaways

~ 7% reduction

reduction

$488B

3/31/2026

~ 5%

New Standardized Expanded Risk Approach Based Approach

(ERBA)

Guidance - 2Q 2026

Guidance excludes the pending BTIG acquisition, which is expected to add ~$200M of quarterly net revenue and be slightly accretive to earnings per share post close in 2026

$4,291M

+4.1% vs. 1Q25

+3% to 4%

vs. 1Q25 of $4,122M

1Q Guidance 1Q Result

Net interest income1 Total fee revenue

Total noninterest expense

+6% to 7%

vs. 2Q25 of $4,080M

Net interest income1

+6% to 7%

vs. 2Q25 of $2,981M

Total fee revenue

+3% to 4%

vs. 2Q25 of $4,181M

Total noninterest expense

+5% to 6%

vs. 1Q25 of $2,836M

$3,032M

+6.9% vs. 1Q25

+1%

vs. 1Q25 of $4,232

$4,265M

+0.8% vs. 1Q25

+4% to 6%

vs. FY25 of $28.7B1

Total net revenue

200+ bps

Positive operating leverage

Disclaimer

U.S. Bancorp published this content on April 16, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 16, 2026 at 10:47 UTC.