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1. Company Snapshot

1.a. Company Description

U.S. Bancorp, a financial services holding company, provides various financial services to individuals, businesses, institutional organizations, governmental entities and other financial institutions in the United States.It operates in Corporate and Commercial Banking, Consumer and Business Banking, Wealth Management and Investment Services, Payment Services, and Treasury and Corporate Support segments.The company offers depository services, including checking accounts, savings accounts, and time certificate contracts; lending services, such as traditional credit products; and credit card services, lease financing and import/export trade, asset-backed lending, agricultural finance, and other products.


It also provides ancillary services comprising capital markets, treasury management, and receivable lock-box collection services to corporate and governmental entity customers; and a range of asset management and fiduciary services for individuals, estates, foundations, business corporations, and charitable organizations.In addition, the company offers investment and insurance products to its customers principally within its markets, as well as fund administration services to a range of mutual and other funds.Further, it provides corporate and purchasing card, and corporate trust services; and merchant processing services, as well as investment management, ATM processing, mortgage banking, insurance, and brokerage and leasing services.


As of December 31, 2021, the company provided its products and services through a network of 2,230 banking offices principally operating in the Midwest and West regions of the United States, as well as through on-line services, over mobile devices, and other distribution channels; and operated a network of 4,059 ATMs. The company was founded in 1863 and is headquartered in Minneapolis, Minnesota.

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1.b. Last Insights on USB

U.S. Bancorp's recent performance has been driven by several positive factors. The company's Q1 2025 earnings beat expectations, with net interest income (NII) and non-interest income rising, while expenses decreased. This was largely due to strong deposit growth, effective expense control, and excellent credit quality. Additionally, U.S. Bancorp has made significant progress in building its capital, which is expected to alleviate regulatory constraints and enable buybacks and multiple expansion by late 2026. The company's partnership with Fiserv to streamline digital card issuance and its expansion of embedded payment solutions are also expected to drive growth and efficiency. Furthermore, U.S. Bancorp's readiness to adopt stablecoins, as signaled by its recent announcement, positions it to capitalize on emerging trends in the financial sector.

1.c. Company Highlights

2. U.S. Bancorp's Strong Q4 2025 Earnings: A Closer Look

U.S. Bancorp reported strong earnings per share of $1.26 for the fourth quarter of 2025, beating analyst estimates of $1.19. The company's net interest income rose 3.3% year-over-year, driven by consumer deposit growth, while fee revenue grew 7.6% year-over-year with broad-based strength across most fee businesses. The company achieved record net revenues of $7.4 billion for the quarter and $28.7 billion for the full year.

Publication Date: Jan -21

📋 Highlights
  • Earnings Growth:: Reported Q4 EPS of $1.26, up 18% YoY, with record quarterly net revenue of $7.4B.
  • Fee Revenue Strength:: Fee income reached $3.05B, growing 7.6% YoY, driven by payments and consumer segments.
  • Operating Leverage:: Targets 4-6% net revenue growth in 2026, aiming for 200+ bps positive operating leverage.
  • BTIG Acquisition Impact:: Anticipated $175M–$200M/quarter fee revenue boost from BTIG, with PPNR neutrality in 2026.
  • Deposit Growth:: Consumer deposits rose $7B (2.5% YoY), with noninterest-bearing deposits up 4% sequentially.

Financial Performance Highlights

The company's net interest margin increased two basis points sequentially to 2.77%. Fee income was $3.05 billion, driven by broad-based growth across payments, institutional, and consumer fee businesses. The company's expense management priority showed steady progress, with nine straight quarters of largely stable expenses due to four signature productivity programs.

Guidance and Outlook

For 2026, the company expects revenue growth to be a stronger driver of continued positive operating leverage, with a target of 4% to 6% total net revenue growth. They anticipate delivering positive operating leverage of 200 basis points or more for the full year. The company forecasts loan growth of 3-4% in 2026, driven by commercial and card growth, with commercial real estate starting to grow.

Valuation and Dividend Yield

With a Price-to-Tangible Book Value (P/TBV) of approximately 1.3, and a Dividend Yield of 3.75%, U.S. Bancorp's valuation appears reasonable. Analysts estimate next year's revenue growth at 5.1%. The company's Net Interest Margin (NIM) is expected to expand to 3% in 2027, driven by mix shifts in the balance sheet and fixed asset repricing.

Business Segment Highlights

The company's commercial loan growth was 10% year-over-year, driven by broad-based growth in areas such as subscription lines, supply chain, and M&A activity. The Global Fund Services business has seen strong growth, driven by its ETF servicing capabilities and a focus on highly complex, small, and boutique firms.

Strategic Initiatives

The acquisition of BTIG is expected to enhance the company's capital markets capabilities, particularly in equities and alternative asset classes. The company is investing in digital assets and money movement, with a focus on tokenization and stablecoins. The company's branch strategy focuses on creating multi-client hubs with a range of products, rather than maintaining a large network of in-store branches.

3. NewsRoom

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Financial Stocks Are Way Oversold: 5 Strong Buy High-Yield Dividend Ideas

Feb -20

Source: 247wallst.com

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U.S. Bancorp: Dividend Value Stock In Buy Range

Feb -17

Source: seekingalpha.com

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USB or NTRS: Which Is the Better Value Stock Right Now?

Feb -11

Source: zacks.com

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Elavon Wins Multiple Top Payment Gateway Awards

Feb -11

Source: businesswire.com

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Rompower's “Ideal Flyback” in Middle Range Power USB-PD 3.1

Feb -10

Source: businesswire.com

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Edgemoor Investment Advisors Inc. Has $3.28 Million Stock Position in U.S. Bancorp $USB

Feb -10

Source: defenseworld.net

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Johnson Investment Counsel Inc. Sells 72,885 Shares of U.S. Bancorp $USB

Feb -10

Source: defenseworld.net

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Elavon launches fresh logo and bold new look for a dynamic 2026

Feb -09

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Wealth, Corporate, Commercial and Institutional Banking

Expected Growth: 5.0%

The segment is expected to grow faster than the global average due to its exposure to corporate and institutional clients who are increasingly demanding digital banking solutions, driving investment in related services.

Consumer and Business Banking

Expected Growth: 4.2%

This segment is expected to grow slightly below the global average due to the mature nature of the consumer banking market, though it will still benefit from digital banking trends.

Payment Services

Expected Growth: 6.0%

The shift towards digital payments is expected to drive higher growth in this segment compared to the global average, as more businesses and consumers adopt electronic payment methods.

Unallocated Taxable-Equivalent Adjustment

Expected Growth: 0.0%

As this is not a revenue-generating segment but rather an accounting adjustment, its growth is not directly comparable to other segments and is expected to remain stable or be adjusted based on tax policies.

Treasury and Corporate Support

Expected Growth: 4.0%

The growth in this segment is expected to be slightly below the global average as it is influenced by the overall performance of the bank and its strategic decisions regarding capital allocation and corporate functions.

7. Detailed Products

Consumer Banking

Provides financial services to individual consumers, including checking and savings accounts, credit cards, home loans, and personal loans.

Corporate Banking

Offers financial services to large corporations, including cash management, treasury management, and lending services.

Commercial Banking

Provides financial services to small and medium-sized businesses, including cash management, lending, and treasury management services.

Wealth Management

Offers investment and wealth management services to individuals, families, and institutions, including investment advice, portfolio management, and retirement planning.

Payment Services

Provides payment processing services to merchants, including credit and debit card processing, electronic funds transfer, and online payment solutions.

Treasury Management

Offers cash management and treasury management services to corporations, including account management, payment processing, and risk management.

Investment Services

Provides investment products and services to individuals, families, and institutions, including brokerage services, investment advice, and retirement planning.

Mortgage Banking

Offers mortgage lending services to individuals and institutions, including residential and commercial mortgage loans.

8. U.S. Bancorp's Porter Forces

Forces Ranking

Threat Of Substitutes

U.S. Bancorp operates in a highly regulated industry, making it difficult for substitutes to emerge. Additionally, the company's diverse range of financial products and services makes it less susceptible to substitution.

Bargaining Power Of Customers

U.S. Bancorp's customers have some bargaining power due to the availability of alternative financial institutions. However, the company's large customer base and diversified product offerings mitigate this power to some extent.

Bargaining Power Of Suppliers

U.S. Bancorp's suppliers, such as technology providers and vendors, have limited bargaining power due to the company's large scale and diversified operations.

Threat Of New Entrants

The banking industry is highly regulated, and new entrants face significant barriers to entry, including high capital requirements and complex regulatory compliance. This limits the threat of new entrants to U.S. Bancorp.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. U.S. Bancorp faces intense rivalry from other major banks, which can lead to pricing pressure and increased marketing expenses.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 53.23%
Debt Cost 9.32%
Equity Weight 46.77%
Equity Cost 9.32%
WACC 9.32%
Leverage 113.79%

11. Quality Control: U.S. Bancorp passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
U.S. Bank

A-Score: 6.7/10

Value: 6.7

Growth: 5.6

Quality: 6.9

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
PNC Financial Services Group

A-Score: 6.5/10

Value: 5.7

Growth: 6.0

Quality: 6.7

Yield: 7.0

Momentum: 4.0

Volatility: 9.3

1-Year Total Return ->

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Stock-Card
M&T Bank

A-Score: 6.2/10

Value: 6.5

Growth: 5.6

Quality: 6.8

Yield: 6.0

Momentum: 3.5

Volatility: 8.7

1-Year Total Return ->

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Stock-Card
Fifth Third

A-Score: 6.1/10

Value: 5.8

Growth: 5.6

Quality: 6.0

Yield: 7.0

Momentum: 4.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
Truist

A-Score: 5.7/10

Value: 4.7

Growth: 2.8

Quality: 5.7

Yield: 8.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

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Stock-Card
First Citizens BancShares

A-Score: 4.9/10

Value: 5.3

Growth: 9.8

Quality: 4.3

Yield: 0.0

Momentum: 3.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

58.66$

Current Price

58.66$

Potential

-0.00%

Expected Cash-Flows