U.S. Bancorp (USB): Q3 profit per share up 10% to $1.34 as BTIG deal lifts fee income

On 15 October 2026 U.S. Bancorp, the US bank that also processes card payments for businesses, reported third-quarter profit of $2.20bn, or $1.34 per share, up 10% from a year earlier. Sales (the bank calls them net revenue) rose 8.7% to a record $7.97bn, helped by the purchase of the brokerage BTIG, while the bank set aside more money for loans that may go bad.

What happened

U.S. Bancorp published its third-quarter 2026 results on Thursday 15 October 2026, covering the three months to 30 September. Net income attributable to the bank was $2,202m, against $2,001m a year earlier and $2,177m in the second quarter. Diluted earnings per share, meaning profit divided by all the shares that could exist if every option were exercised, were $1.34, against $1.22 a year earlier and $1.35 in the second quarter. Chairman and chief executive Gunjan Kedia called the results "strong" and cited record net revenue of $8.0 billion. These are reported (GAAP) figures in US dollars, with no adjustments applied.

Two deals shaped the quarter. The first is the acquisition of Condor Trading LP and its subsidiaries, including BTIG, LLC, a brokerage and investment-banking firm; the bank's release says capital markets revenue "increased primarily due to the contribution from BTIG" and that higher costs "reflected the impact of the BTIG acquisition". The second is the purchase of a small business credit card portfolio, which required an initial $135m provision (money set aside against future loan losses) and a $55m allowance for acquired credit losses. The bank declared a dividend of $0.54 per share, up from $0.52, and repurchased no shares in the quarter, against three million in the second quarter.

The numbers, explained

Revenue is the sum of two parts. Net interest income, the gap between what the bank earns on loans and pays on deposits, was $4,490m on the bank's taxable-equivalent basis (which grosses up tax-exempt income), against $4,251m a year earlier: up $239m, or 5.6% (239 divided by 4,251). The net interest margin, which measures that gap as a share of earning assets, was 2.84%, against 2.75% a year ago and 2.79% last quarter. Noninterest income, mostly fees, was $3,480m against $3,078m, up $402m or 13.1% (402 divided by 3,078), and made up about 44% of revenue (3,480 divided by 7,970 is 43.7%). Together they give $7,970m, against $7,329m a year earlier: up $641m, or 8.7%. Compared with the second quarter's $7,712m, that is up 3.3% (258 divided by 7,712).

The fee growth is concentrated in one line. Capital markets revenue, which comes from helping companies raise money and trade securities, was $640m against $378m a year ago, up 69.3% (262 divided by 378), and up 25.0% from $512m in the second quarter. Trust and investment management fees rose from $730m to $802m, up 9.9% (72 divided by 730), "due to business growth and favorable market conditions". Corporate payment and treasury management revenue rose from $407m to $457m, up 12.3%, while merchant processing, the fees from handling shop card payments, was flat at $461m against $463m. The bank said combined payments revenue grew 6.5%.

Costs and credit moved up too. Noninterest expense was $4,493m against $4,197m, up $296m or 7.1% (296 divided by 4,197). The efficiency ratio, which is expenses as a share of revenue so lower is better, was 55.9% against 57.2% a year ago, because revenue grew faster than costs. The provision for credit losses was $654m against $571m, up 14.5% (83 divided by 571), and includes the $135m card-portfolio charge. The net charge-off ratio, the share of loans written off as unrecoverable, improved to 0.51% from 0.56%. Return on tangible common equity, a measure of profit on shareholders' own capital, was 18.5% against 18.6%.

Why it matters

U.S. Bancorp earns money in three ways: lending (it had $409.5bn in average loans, up 8.0% from $379.2bn), taking deposits ($526.6bn on average, up 2.9% from $511.8bn), and fees from payments, wealth management and capital markets. For customers this means one bank that lends to households and small businesses, processes card payments for retailers and manages investments. The quarter shows the bank leaning further into fee businesses: BTIG gives it a bigger securities-trading and advisory arm, which tends to earn more when markets are active and less when they are quiet.

For rivals and the sector, the figures show a large regional bank growing revenue faster than expenses at a time when borrowers are repaying reliably, since write-offs fell. Two cautions apply. A large share of this quarter's fee growth comes from an acquisition rather than from the existing business, so it is not like-for-like growth. And profit per share rose 9.8% (0.12 divided by 1.22) while net income rose 10.0%, a gap that is small but reminds readers that the figure per share depends on how many shares exist. Analysts' average forecasts, which are estimates and not company figures, were reported at about $1.32 to $1.33 per share and about $8.0bn of revenue, according to different outlets.

What to watch next

The bank has said its fourth-quarter 2026 earnings conference call is scheduled for Tuesday 19 January 2027 at 8 a.m. Central Time, with the exact release timing to be confirmed about two weeks before. Items worth comparing then include whether net interest margin keeps rising from 2.84%, how much of capital markets revenue is still lifted by BTIG, and whether the net charge-off ratio stays near 0.51%. A summary of the earnings call also reported that management raised its full-year revenue growth outlook to 8% to 9%; that figure comes from a call summary, not the written release, which gives no numeric forecast.

• Net interest margin: what the bank earns on loans and investments minus what it pays on deposits, as a share of its earning assets.
• Provision for credit losses: money set aside now to cover loans that may not be repaid.

Sources

• U.S. Bancorp Q3 2026 earnings release (SEC 8-K)
• US Bancorp reports 10% rise in Q3 net income to $2.2 billion as earnings beat forecasts (Finviz)
• U.S. Bancorp Reports $7.97 Billion Third-Quarter Revenue (Quiver Quantitative)
• U.S. Bancorp (USB) Q3 2026 Earnings Call: Record Revenue and Higher Guidance (Mitrade)
• U.S. Bancorp updated schedule for 2027 earnings conference calls (company)