U.S. Bancorp ( USB ) shares are trading higher in the premarket Thursday.

USB shares are advancing steadily. Find out why here.

The bank reported third-quarter adjusted earnings per share of $1.22, beating the analyst consensus estimate of $1.13. Quarterly sales of $7.30 billion outpaced the Street View of $7.16 billion.

The company reported net income of $2.001 billion, representing a 16.7% year-over-year increase.

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Provision for credit losses rose 2.5% year over year to $571 million, primarily due to loan portfolio growth.

Net interest income rose 2.1% year over year to $4.222 billion. The net interest margin of 2.75 percent in the third quarter was relatively stable compared with 2.74 percent in the year-ago period. Noninterest income rose 14.1% to $3.078 billion.

U.S. Bancorp ( USB ) delivered a solid third quarter, with return on tangible common equity rising to 18.6% and return on average assets improving to 1.17% versus the year-ago period. The average deposits stood at $511 billion (+0.6% year over year) in the third quarter.

Operating efficiency strengthened as the efficiency ratio improved to 57.2% and the bank generated 530 bps of positive operating leverage year over year (ex-securities gains/losses).

“Solid net interest income growth and margin expansion, as well as continued momentum across our fee businesses and prudent expense management supported double-digit net income growth, on both a linked quarter and year-over-year basis,” said Gunjan Kedia, CEO, U.S. Bancorp ( USB ).

Core profitability also inched higher, with net interest margin at 2.75%, up nine bps sequentially, while noninterest expense remained relatively stable from a year ago.

Balance-sheet trends were steady, with average total loans up 1.4% year over year. Capital remained robust, with a Common Equity Tier 1 (CET1) ratio of 10.9% as of September 30, 2025.

Nonperforming assets were $1.654 billion at September 30, compared with $1,680 million at June 30.

Q4 Outlook

The company expects quarterly net interest income to be relatively stable compared to the third quarter.

U.S. Bancorp ( USB ) expects $3 billion as the total fee revenue for the fourth quarter. It anticipates the total noninterest expense to rise within the band of 1% to 5% compared to the third quarter of 2025.

U.S. Bancorp ( USB ) aims to deepen consumer deposit relationships by offering interconnected, bundled products on its Smartly platform, while optimizing growth and cost of funds through advanced pricing analytics.

Price Action: U.S. Bancorp ( USB ) shares were up 1.70% at $47.24 during premarket trading on Thursday, according to Benzinga Pro data.

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