U.S. Bancorp Reports $1.7 Billion Net Income for Q1 2025, Up from $1.3 Billion Last Year

U.S. Bancorp reported a net income of $1.7 billion for the first quarter of 2025, translating to earnings of $1.03 per diluted share, a significant increase from the $1.3 billion, or $0.78 per diluted share, recorded in the same period last year. The company's return on average assets rose to 1.04% from 0.81%, while return on average common equity improved to 12.3% from 10.0%. Total net revenue for the quarter was $6.96 billion, up 3.6% from $6.72 billion in the first quarter of 2024, driven by a 2.7% increase in net interest income and a 5.0% rise in noninterest income.

The financial performance reflects a notable recovery from the previous fiscal period, particularly as the first quarter of 2024 was impacted by $265 million in notable items, including merger and integration charges related to the acquisition of MUFG Union Bank. Noninterest expenses decreased by 5.1% to $4.23 billion, primarily due to the absence of merger-related costs and lower compensation expenses. The provision for credit losses also saw a decrease of 2.9% to $537 million, attributed to improved credit quality and a favorable loan portfolio mix.

Operationally, U.S. Bancorp's loan portfolio increased to $381.8 billion as of March 31, 2025, up from $379.8 billion at the end of 2024, with commercial loans driving the growth. The company reported a slight decline in noninterest-bearing deposits, which fell by 6.0% year-over-year, while total deposits decreased by 1.1% to $512.5 billion. The average total loans for the quarter were $379.0 billion, reflecting a 2.1% increase compared to the same period last year. The company also reported a net charge-off rate of 0.59%, up from 0.53% in the prior year, indicating a slight increase in credit risk.

Strategically, U.S. Bancorp continues to focus on enhancing its product offerings and expanding its market presence. The company has maintained a strong capital position, with a common equity tier 1 capital ratio of 10.8% as of March 31, 2025, compared to 10.6% at the end of 2024. The company is also actively managing its liquidity, with total available liquidity reported at $291.3 billion, up from $286.6 billion at the end of the previous year. Looking ahead, U.S. Bancorp anticipates continued growth in its core banking operations, although it remains vigilant regarding potential economic uncertainties and their impact on credit quality and market conditions.