Reported by U.S. Bancorp on Wednesday, April 16. 2025:
Highlights
- Net income of $1,709 million and diluted earnings per common share of $1.03
- Return on tangible common equity of 17.5%, return on average assets of 1.04%, and efficiency ratio of 60.8%
- Positive operating leverage of 270 basis points on a year-over-year basis, as adjusted for notable items in the first quarter of 2024
- Net revenue of $6,958 million, an increase of 3.6% year-over-year, including an increase of 2.7% in net interest income on a taxable equivalent basis and an increase of 5.0% in noninterest income
- Net interest margin of 2.72%, an increase of 2 basis points on a year-over-year basis and a 1 basis point increase on a linked quarter basis
- Noninterest expense increase of 0.9% on a year-over-year basis and 0.7% on a linked quarter basis, as adjusted for notable items in the prior quarters
- CET1 capital ratio of 10.8% at March 31, 2025, compared with 10.6% at December 31, 2024
- Average total loans increased 2.1% on a year-over-year basis and 0.9% on a linked quarter basis
- Full financial details available here.
CEO commentary
U.S. Bancorp President and CEO Gunjan Kedia said, “In the first quarter we reported diluted earnings per share of $1.03 and delivered a return on tangible common equity of 17.5%. We managed expenses with discipline and delivered 270 basis points of positive operating leverage on an adjusted basis – our third consecutive quarter of year-over-year growth in revenues outpacing expenses. Total net revenue of approximately $7.0 billion was supported by slight margin expansion and year-over-year growth in fee revenue of 5%. Importantly, asset quality and capital levels are strong. This quarter, our net charge-off ratio improved modestly and common equity tier 1 capital ratio increased by 20 basis points to 10.8%.
As we navigate macro-economic uncertainties, we will continue to manage the bank with strong risk management capabilities. As I step into the role as Chief Executive Officer, I am excited to lead this exceptional banking franchise and confident in our ability to deliver strong and consistent financial results. I would like to thank my U.S. Bank colleagues for their dedication to our company. As we collectively mourn the loss of our dear friend and colleague, Terry Dolan, the U.S. Bank family truly appreciates the outpouring of support and heartfelt condolences we’ve received from far and wide. Our prayers continue to be with his family and friends during this most difficult time.
Finally, on behalf of the U.S. Bank team, I want to thank Andy Cecere for his 40+ years of thoughtful, dedicated, and steady leadership.”
Business and other highlights
U.S. Bank personal loans now available through State Farm: In the latest expansion of the State Farm and U.S. Bank alliance, State Farm customers can now apply for U.S. Bank personal loans for up to $50,000 working directly with their agent. To date, more than 900,000 State Farm customers have accessed a suite of U.S. Bank products including deposits, cobranded credit cards and business banking products and services. This is the latest expansion of the collaboration between U.S. Bank and State Farm, which began in 2020.
U.S. Bank introduces Spend Management for business owners: U.S. Bank has introduced a new Spend Management platform to help businesses monitor, track and control their card-based spending. This all-in-one platform is available through the bank’s full portfolio of business credit cards, giving business owners an alternative to using multiple tools. Spend Management gives owners the ability to easily manage how employees use cards.
U.S. Bank Shield™ Visa® card offers 0 percent intro APR for 24 billing cycles: U.S. Bank announced the launch of the U.S. Bank Shield™ Visa® Card, a no annual fee card that provides great value for consumers. The card offers a market-leading introductory 0% APR on purchases and balance transfers for the first 24 billing cycles, and a variable APR thereafter. The card also includes an array of purchase protection and cash-back benefits.
U.S. Bank introduces all-in-one business checking plus payments acceptance: U.S. Bank has launched a premier all-in-one checking account combined with payments acceptance capabilities for small businesses, called Business Essentials. The account enables businesses to accept credit card payments with free same-day access to their funds and a free mobile card reader, in addition to checking with unlimited digital transactions and no monthly maintenance fee.
