U.S. Bancorp ( USB ) edged past earnings estimates in the second quarter but fell short of revenue expectations, causing its shares to decline in Thursday’s premarket trade.

The company reported second-quarter adjusted earnings per share of $1.11, beating the analyst consensus estimate of $1.07.

Quarterly sales of $7.004 billion (+2% year over year) missed the Street view of $7.052 billion.

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On a GAAP basis, U.S. Bancorp ( USB ) registered revenues of $6.975 billion, missing the analyst consensus estimate of $7.052 billion.

“Year-over-year top-line revenue growth, coupled with our continued expense discipline, resulted in 250 basis points of positive operating leverage, as adjusted, and an efficiency ratio of 59.2% for the quarter,” said the company’s CEO Gunjan Kedia.

Net interest income edged up by 0.7% year over year to $4.051 billion. Non-interest income soared 3.9% to $2.924 billion.

The company reported a net income of $1.815 billion, representing a 13.2% year-over-year increase.

U.S. Bancorp ( USB ) achieved a return on tangible common equity of 18.0%, a return on average assets of 1.08%, and maintained an efficiency ratio of 59.2%.

Average total loans increased 1.0% on a year-over-year basis and decreased 0.1% on a linked quarter basis, reflecting the impact of loan portfolio sales during the second quarter of 2025.

Total average loans and loans held for sale increased 1.7% on a year-over-year basis and 0.7% on a linked-quarter basis.

Provision for credit losses in the quarter under review decreased by 11.8% to $501 million from $568 million in the year-ago period.

“As we look ahead, we remain committed to executing on our strategic priorities and making disciplined progress towards achieving our medium-term financial targets,” Kedia added.

The company had a common equity tier 1 capital ratio of 10.7% as of June 30, 2025.

Outlook: U.S. Bancorp ( USB ) anticipates its full-year 2025 taxable-equivalent revenue will increase by 3%–5% compared to 2024.

For the third quarter, the company expects net interest income to be between $4.1 billion and $4.2 billion.

Price Action: USB shares are trading lower by 3.7% to $43.99 premarket at last check Thursday.

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