Company: USB-PA
Filing Date: 2025-08-07
Form Type: 10-Q
Source: 0000036104-25-000055
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Company: US BANCORP \DE\
Filing Date: 2025-08-07
Form: 10-Q
Item: Item 7
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Management’s Discussion and Analysis

Overview

Earnings Summary U.S. Bancorp and its subsidiaries (the “Company”) reported net income attributable to U.S. Bancorp of $1.8 billion for the second quarter of 2025, or $1.11 per diluted common share, compared with $1.6 billion, or $0.97 per diluted common share, for the second quarter of 2024. Return on average assets and return on average common equity were 1.08 percent and 12.9 percent, respectively, for the second quarter of 2025, compared with 0.97 percent and 12.4 percent, respectively, for the second quarter of 2024. The results for the second quarter of 2024 included the impact of a $26 million ($19 million net-of-tax) notable item related to an incremental FDIC special assessment charge, which decreased diluted earnings per common share for the second quarter of 2024 by $0.01.Total net revenue for the second quarter of 2025 was $137 million (2.0 percent) higher than the second quarter of 2024, reflecting a 0.7 percent increase in net interest income and a 3.9 percent increase in noninterest income. The increase in net interest income from the second quarter of 2024 was primarily due to the impact of fixed asset repricing and loan mix, partially offset by deposit mix and pricing pressures. The increase in noninterest income was driven by higher trust and investment management fees, payment services revenue and other noninterest income, partially offset by lower mortgage banking revenue.Noninterest expense in the second quarter of 2025 was $33 million (0.8 percent) lower than the second quarter of 2024, primarily due to lower compensation and employee benefits expense and other intangibles expense, partially offset by higher technology and communications expense. The provision for credit losses for the second quarter of 2025 was $67 million (11.8 percent) lower than the second quarter of 2024, reflecting the impact of loan portfolio sales during the second quarter of 2025 and improved credit quality. Net charge-offs in the second quarter of 2025 were $554 million, compared with $538 million in the second quarter of 2024. Refer to “Corporate Risk Profile” for further information on the provision for credit losses, net charge-offs, nonperforming assets and other factors considered by the Company in assessing the credit quality of the loan portfolio and establishing the allowance