3Q 2026
Filed Oct 15, 2026Record total net revenue of $7,970 million, with net income attributable to U.S. Bancorp of $2,202 million and diluted earnings per common share of $1.34.
Third-quarter revenue, net income and taxable-equivalent net interest income rose year over year, while net interest margin expanded, asset-quality measures improved and the efficiency ratio declined. Higher provision expense from the small business credit card portfolio purchase and weaker Payment Services net income were the principal offsets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenue, 3Q 2026GAAP | $7.97B | 3.3% | 8.7% |
| Net interest income, 3Q 2026GAAP | $4.47B | 2.5% | 5.8% |
| Net interest income, taxable-equivalent basis, 3Q 2026non-GAAP | $4.49B | 2.3% | 5.6% |
| Noninterest income, 3Q 2026GAAP | $3.48B | 4.7% | 13.1% |
| Total fee revenue, 3Q 2026GAAP | $3.54B | 5.1% | 14.9% |
| Noninterest expense, 3Q 2026GAAP | $4.49B | 1.5% | 7.1% |
| Income before provision and income taxes, 3Q 2026GAAP | $3.48B | 5.9% | 11.0% |
| Provision for credit losses, 3Q 2026GAAP | $654M | 21.6% | 14.5% |
| Net income, 3Q 2026GAAP | $2.21B | 1.1% | 10.0% |
| Net income attributable to U.S. Bancorp, 3Q 2026GAAP | $2.20B | 1.1% | 10.0% |
| Net income applicable to U.S. Bancorp common shareholders, 3Q 2026GAAP | $2.10B | (.1)% | 10.7% |
| Diluted earnings per common share, 3Q 2026GAAP | $1.34 | (.7)% | 9.8% |
| Net interest margin, 3Q 2026non-GAAP | 2.84% | .05% | .09% |
| Efficiency ratio, 3Q 2026non-GAAP | 55.9% | – | – |
| Operating leverage, 3Q 2026non-GAAP | 2.4% | – | – |
| Return on average assets, 3Q 2026other | 1.25% | – | – |
| Return on average common equity, 3Q 2026other | 13.6% | – | – |
| Return on tangible common equity, 3Q 2026non-GAAP | 18.5% | – | – |
| Average total loans, 3Q 2026GAAP | $409.5B | 1.0% | 8.0% |
| Average total deposits, 3Q 2026GAAP | $526.6B | 2.2% | 2.9% |
| Total deposits, September 30, 2026GAAP | $531.7B | – | – |
| Total loans, September 30, 2026GAAP | $415.2B | – | – |
| Total assets, September 30, 2026GAAP | $703.0B | – | – |
| Long-term debt, September 30, 2026GAAP | $52.00B | – | – |
| Cash and due from banks, September 30, 2026GAAP | $49.52B | – | – |
| Total U.S. Bancorp shareholders' equity, September 30, 2026GAAP | $66.42B | – | – |
| Basel III standardized common equity tier 1 capital ratio, September 30, 2026other | 10.8% | – | – |
| Net charge-off ratio, 3Q 2026other | 0.51% | – | – |
| Total net charge-offs, 3Q 2026GAAP | $523M | – | – |
| Allowance for credit losses, September 30, 2026GAAP | $8.16B | – | – |
| Allowance for credit losses as a percentage of period-end loans, September 30, 2026other | 1.97% | – | – |
| Nonperforming assets, September 30, 2026GAAP | $1.32B | – | – |
| Effective tax rate, 3Q 2026GAAP | 21.2% | – | – |
| Tax rate on a taxable-equivalent basis, 3Q 2026non-GAAP | 21.8% | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Wealth, Corporate, Commercial and Institutional BankingHigher net interest income from higher loan and deposit balances, plus higher capital markets revenue from BTIG, syndication and client-related derivative activity and higher trust and investment management fees. | $4.00B | 6.2% | 19.9% |
| Consumer and Business BankingHigher net interest income from higher deposit balances was more than offset by lower noninterest income, primarily lower mortgage banking revenue reflecting lower gain on sale activity. | $2.40B | 1.2% | (.5)% |
| Payment ServicesHigher loan balances including the small business credit card portfolio purchase, and higher corporate payment and treasury management revenue and card revenue driven by higher sales volume. | $1.87B | 3.1% | 6.5% |
| Treasury and Corporate SupportLower net interest income from lower interest-bearing deposits with banks and investment securities balances, plus lower noninterest income from losses on sales of investment securities. | ($299 million) | (24.6)% | (72.8)% |
Capital returns
- Dividends declared per common share were $.54 in 3Q 2026, compared with $.52 in 3Q 2025 and $.52 in 2Q 2026.
- Shares repurchased were — in 3Q 2026, compared with (3) million in 2Q 2026 and (2) million in 3Q 2025.
- Ending shares outstanding were 1,558 million in 3Q 2026.
What drove it
- Taxable-equivalent net interest income increased primarily from loan growth, the small business credit card portfolio purchase and benefits from fixed asset repricing.
- Net interest margin increased to 2.84% from 2.75% in 3Q 2025, reflecting benefits from fixed asset repricing and improved asset mix.
- Capital markets revenue increased 69.3% year over year, primarily from BTIG, higher syndication and client-related derivative activity.
- Trust and investment management fees increased due to business growth and favorable market conditions.
- Corporate payment and treasury management revenue increased due to higher sales.
- Average total loans increased $30.4 billion (8.0 percent), driven by commercial, commercial real estate and credit card loan growth.
- Average total deposits increased $14.8 billion (2.9 percent), driven by growth in savings accounts and money market accounts.
Concerns
- Provision for credit losses rose to $654 million from $571 million in 3Q 2025 and $538 million in 2Q 2026, including $135 million of provision for acquired loans related to the small business credit card portfolio purchase.
- Payment Services net income attributable to U.S. Bancorp declined 31.4% year over year to $175 million as provision for credit losses rose 45.2%.
- Noninterest expense increased 7.1% year over year to $4,493 million, reflecting BTIG, compensation and employee benefits, technology and communications, and marketing and business development expense.
- Merchant processing services revenue declined 4.9% sequentially due to seasonality, while mortgage banking revenue declined 13.9% year over year.
- Treasury and Corporate Support reported net income attributable to U.S. Bancorp of ($204 million), compared with ($78 million) in 3Q 2025.
What to watch
- The contribution of the small business credit card portfolio purchase to loan growth, net interest income and credit-loss provision.
- BTIG's contribution to capital markets revenue and the associated compensation, technology and communications expense.
- Whether fixed asset repricing and asset mix continue to support net interest margin.
- Credit-card and commercial real estate charge-offs, following lower total net charge-offs but higher commercial real estate net charge-offs sequentially.
- The trajectory of Payment Services profitability as credit-loss provision, technology, compensation and marketing costs remain elevated.
Balance sheet and cash flow
- Cash and due from banks were $49,523 million at September 30, 2026.
- Total deposits were $531,705 million at September 30, 2026.
- Total loans were $415,247 million at September 30, 2026; net loans were $407,432 million.
- Long-term debt was $51,996 million and short-term borrowings were $21,044 million at September 30, 2026.
- Total assets were $702,966 million and total U.S. Bancorp shareholders' equity was $66,425 million at September 30, 2026.
- Operating cash flow and free cash flow were not reported.
Analysis
U.S. Bancorp reported record total net revenue of $7,970 million in 3Q 2026, up 8.7% from $7,329 million in 3Q 2025 and 3.3% from $7,712 million in 2Q 2026. Net income attributable to U.S. Bancorp increased 10.0% year over year to $2,202 million, while diluted earnings per common share rose 9.8% to $1.34. Taxable-equivalent net interest income increased 5.6% to $4,490 million and noninterest income increased 13.1% to $3,480 million, producing 2.4% operating leverage.
The revenue mix benefited from both balance-sheet growth and fee-income momentum. Average total loans increased 8.0% year over year to $409,548 million, led by commercial, commercial real estate and credit card loans. Average total deposits rose 2.9% to $526,602 million. Net interest margin expanded to 2.84% from 2.75% a year earlier and 2.79% in the prior quarter, with fixed asset repricing, improved asset mix and the small business credit card portfolio purchase cited as drivers.
Fee revenue increased 14.9% to $3,545 million. Capital markets revenue rose 69.3% to $640 million, primarily reflecting BTIG, higher syndication and client-related derivative activity. Trust and investment management fees, corporate payment and treasury management revenue, and other revenue also increased. Wealth, Corporate, Commercial and Institutional Banking was the primary segment growth engine, with total net revenue up 19.9% to $3,997 million. Payment Services revenue rose 6.5%, but its net income attributable to U.S. Bancorp declined 31.4% as provision for credit losses increased.
Expense and credit costs remain the main offsets. Noninterest expense increased 7.1% to $4,493 million, driven by BTIG, merit increases, technology and communications investment, and marketing and business development. Provision for credit losses increased to $654 million, including $135 million of provision for acquired loans from the small business credit card portfolio purchase. Credit performance otherwise improved: total net charge-offs fell to $523 million, the net charge-off ratio declined to 0.51%, and nonperforming assets declined to $1,324 million.
Capital remained well-capitalized by the company's description, with a Basel III standardized common equity tier 1 capital ratio of 10.8% at September 30, 2026. Total U.S. Bancorp shareholders' equity was $66,425 million. The company declared a $.54 per-common-share dividend and reported no share repurchases in the quarter. The filing did not provide forward financial guidance.
Management, verbatim
We delivered strong third quarter results. Record net revenue of $8.0 billion drove diluted earnings per share of $1.34, up 10% year-over-year, a return on tangible common equity of 18.5%, and an efficiency ratio of 55.9%.
Gunjan Kedia, Chairman and CEO, U.S. Bancorp
We reported a full quarter of BTIG results, which drove an increase of 69.3% year-over-year in capital markets revenue. Our Payments transformation gained momentum and delivered combined revenue growth of 6.5% year-over-year.
Gunjan Kedia, Chairman and CEO, U.S. Bancorp
Not in the filing
stated, not guessed- Forward revenue, expense, tax-rate, margin, earnings-per-share or capital guidance was not provided.
- Prior-release outlook was not provided.
- Gross margin was not reported.
- Operating cash flow was not reported.
- Free cash flow was not reported.
- Dollar value of share repurchases was not reported.
- Management did not report non-GAAP adjusted net income or non-GAAP adjusted diluted earnings per share.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.