U.S. Bancorp, the fifth-largest lender in the United States, has reported a significant 13.6 per cent jump in its first-quarter profit. The Minneapolis-based financial institution saw its earnings driven by strong performances in both interest income and fee revenue. U.S. Bancorp is one of America’s largest financial services holding companies, providing a comprehensive range of banking, investment, mortgage, trust, and payment services. It serves individuals, businesses, governmental entities, and other financial institutions.
Net interest income, which represents the difference between a bank’s earnings on loans and its payouts on deposits, increased 4.2 per cent to $4.26 billion for the quarter compared to a year prior. This was primarily bolstered by robust loan growth and record consumer deposits. Industry-wide loan growth has been notable in recent months, encouraged by a series of rate cuts from the U.S. Federal Reserve anticipated in the second half of 2025. Fee revenue also proved a strong performer, surging 6.9 per cent as the bank capitalised on vigorous capital markets activity. Capital markets revenue alone saw a 29 per cent increase to $377 million, spurred by strong client-related derivative activity and corporate bond underwriting fees. U.S. Bancorp CEO Gunjan Kedia affirmed, “Credit quality and capital levels remain healthy and strong.”
In a broader context, the bank highlighted its limited exposure to business development companies (BDCs), which are investment vehicles providing access to private credit assets. This disclosure comes as Wall Street banks have increased transparency regarding non-bank lending exposures, following high-profile bankruptcies last year that sparked concerns over credit quality. Furthermore, U.S. Bancorp recently secured the mandate to be the issuer for two small business credit cards that Amazon is set to relaunch this spring. For the three months ended March 31, the bank’s profit reached $1.95 billion, or $1.18 per share, an increase from $1.72 billion, or $1.03 per share, reported during the same period a year earlier.
