U.S. Bancorp Posts Solid Q4 Earnings, But Shares Drop 5%

U.S. Bancorp (NYSE:USB) narrowly exceeded Wall Street expectations for the fourth quarter, reporting steady growth in key metrics. Despite the positive results, shares dropped more than 5% intra-day today, reflecting cautious investor sentiment.

The Minneapolis-based financial institution delivered adjusted earnings per share of $1.07, slightly surpassing the Street estimate of $1.05. Quarterly revenue reached $7.01 billion, modestly beating the forecast of $6.98 billion and marking an increase from $6.77 billion in the same quarter last year.

Net interest income, a vital metric for banks, climbed to $4.18 billion on a taxable-equivalent basis. U.S. Bancorp also demonstrated operational efficiency, with an adjusted efficiency ratio improving to 59.9%, highlighting effective expense management relative to revenue generation.

Chairman and CEO Andy Cecere emphasized the bank’s ability to leverage balance sheet management, asset repricing, and a diversified business model to deliver strong results. Year-over-year revenue growth and disciplined expense control contributed to 190 basis points of positive operating leverage on an adjusted basis.

For the full year 2024, U.S. Bancorp achieved adjusted net income of $6.60 billion, with adjusted earnings per share totaling $3.98. Noninterest income, excluding securities gains or losses and prior year adjustments, grew 3.9% year-over-year.