US Bancorp (NYSE:USB) stock rose 0.57% (As on January 20, 11:25:21 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter earnings that exceeded analyst expectations, driven by record net revenue and improved efficiency. U.S. Bancorp’s net interest margin improved to 2.77%, up 6 basis points YoY and 2 basis points from the previous quarter. The bank delivered positive operating leverage of 440 basis points on an adjusted basis, while its efficiency ratio improved to 57.4% from 61.5% a year earlier. Total loans increased 2.3% YoY to $384.3 billion, with commercial loans rising 10.1% and credit card loans up 5.7%. The bank’s credit quality improved, with the net charge-off ratio decreasing to 0.54% from 0.60% in Q4 2024. The bank maintained strong capital levels with a CET1 capital ratio of 10.8% at year-end. U.S. Bancorp also announced plans to acquire BTIG, LLC, a financial services firm specializing in investment banking and institutional trading, expected to close in the second quarter of 2026.

Moreover, a string of rate cuts by ‍the Federal Reserve has lifted ​loan demand across the industry and boosted earnings at Wall Street’s top ​consumer banks. U.S. ⁠banks have also reduced deposit costs as benchmark rates decline, while also benefiting from the repricing of fixed-rate assets. The bank is also poised to bolster its Wall Street operations with its planned purchase of brokerage ​BTIG for up to $1 billion, which will augment U.S. Bancorp’s advisory capabilities in equity capital markets as well as mergers and acquisitions. Under Kedia’s leadership, the bank is pushing to further diversify its fee businesses, which make up 42% of its revenue.

USB in the fourth quarter of FY25 has reported the adjusted earnings per share of $1.26, beating the analysts’ estimates for the adjusted earnings per share of $1.19. The company had reported the adjusted revenue growth of 5.1 percent to $7.37 billion in the fourth quarter of FY25, exceeded Wall Street’s estimates by 0.6% with fee revenue increasing 7.6% lifted by strong performances in its capital markets and impact finance businesses. Net income rose to $2.05 billion, a 23% increase from the same period last year.

Excluding ​the BTIG acquisition, U.S. Bancorp expects between 4% and 6% revenue growth in 2026. NII is expected to jump 3% to 4% in the first quarter from a year earlier, while fee revenue is expected ​to grow between 5% and 6%.