US Bancorp Delivers 32% Year-on-Year EPS Growth in Q1 2025 with Third Consecutive Quarter of Positive Operating Leverage

U.S. Bancorp reported first-quarter 2025 net income of $1.71 billion and earnings per share of $1.03, a 32% improvement on the first quarter of 2024, as the Minneapolis-based bank achieved positive operating leverage for the third quarter in succession.

Net revenue for the quarter reached $6.96 billion, up 3.6% year-on-year, driven by growth across both net interest income and fee-based businesses including payments, capital markets, and trust and investment management services. The bank generated 270 basis points of positive operating leverage on a year-over-year basis, excluding notable items in the first quarter of 2024, meaning revenue growth outpaced expense growth.

RETURNS, MARGIN AND CREDIT

Return on tangible common equity for the quarter came in at 17.5%. The net interest margin stood at 2.72%. Fee income grew 5% year-on-year.

Chief executive Gunjan Kedia described asset quality and capital levels as strong, and the net charge-off ratio improved to 0.59% from 0.60% in the fourth quarter.

The Common Equity Tier 1 ratio rose 20 basis points from year-end 2024 to 10.8% at the close of March.

BACKGROUND

U.S. Bancorp's business spans retail banking, corporate and commercial banking, payment services, and wealth management, serving clients across a geographically diverse footprint in the Midwest and western United States. U.S. Bancorp acquired Union Bank in December 2022.