U.S. Bancorp profit rises 14% as fee revenue and lending growth drive results

U.S. Bancorp (NYSE:USB) reported a 14% increase in first-quarter profit, signaling a robust start to 2026 as the lender capitalized on a diversified revenue mix and disciplined cost management.

The Minneapolis-based firm posted net income of $1.945 billion, up from the prior year, while diluted earnings per share rose 15% to $1.18.

Total net revenue reached $7.288 million for the period.

The results were supported by a 4.1% increase in taxable-equivalent net interest income and a sharp 6.9% rise in fee-based revenue.

This growth, coupled with relatively flat noninterest expenses, allowed the bank to generate 440 basis points of positive operating leverage compared to the first quarter of 2025.

The bank's net interest margin—a key gauge of lending profitability—expanded by 5 basis points year-over-year to 2.77%.

Lending activity also showed resilience, with average total loans increasing 3.8% from a year ago and 2.4% on a linked-quarter basis.

On the funding side, average total deposits grew 1.7% year-over-year, suggesting a stable deposit base despite broader industry competition.