TLDR:
- US Bancorp reported Q1 profit of $1.603 billion or $1.03 per share, up from $0.78 last year
- Revenue rose 3.6% to $6.958 billion, exceeding analyst expectations
- EPS beat Wall Street’s estimate of $0.98 per share
- New CEO Gunjan Kedia took over on Tuesday, succeeding Andy Cecere
- USB stock gained about 1% following the earnings report, though it remains down 18.26% year-to-date
US Bancorp reported a strong first quarter performance for 2025, with profits climbing and results exceeding analyst expectations. The bank’s earnings report, released Wednesday, sent its stock higher despite ongoing economic concerns.
The financial company reported first-quarter earnings of $1.603 billion, translating to $1.03 per share. This marks a substantial increase from the $1.209 billion, or $0.78 per share, reported in the same period last year.
Analysts had expected earnings of $0.98 per share, which US Bancorp handily beat. The 32% year-over-year growth in earnings per share demonstrated the bank’s improved profitability.
Revenue for the quarter rose to $6.958 billion, representing a 3.6% increase from $6.715 billion in the first quarter of 2024. This figure also topped Wall Street’s forecast of $6.91 billion.
The company’s revenue growth was driven by multiple factors. US Bancorp saw a 2.7% increase in net interest income on a taxable equivalent basis.
Non-interest income grew by 5%, further contributing to the bank’s overall revenue improvement. These figures indicate healthy performance across different areas of the bank’s business.
New Leadership at the Helm
The earnings report coincided with a major leadership change at US Bancorp. Gunjan Kedia officially took over as CEO on Tuesday, just before the earnings announcement.
Kedia succeeded Andy Cecere, who now serves as Executive Chairman of the company’s Board of Directors. The transition appears to be going smoothly based on the Q1 results.
Having joined US Bancorp in 2016 as Vice Chairman, Kedia was serving as President prior to this promotion. He will continue to hold the title of President alongside his new role as CEO.
In the earnings report, Kedia addressed the current economic climate. “As we navigate macro economic uncertainties, we will continue to manage the bank with strong risk management capabilities,” he stated.
This comment hints at the challenges facing the banking sector despite US Bancorp’s positive results. His focus on risk management suggests a cautious approach moving forward.
Market Reaction and Outlook
Following the earnings release, US Bancorp stock gained approximately 1% on Wednesday. This uptick came after a 1.13% increase the previous day.
Despite these recent gains, USB shares remain down 18.26% year-to-date. Analysts attribute this overall decline to economic uncertainty in the U.S. rather than specific concerns about US Bancorp’s performance.
The stock’s current position has prompted varied opinions from Wall Street analysts. The consensus rating for US Bancorp is “Moderate Buy,” based on 10 Buy ratings, 5 Hold ratings, and 1 Sell rating over the past three months.
Analysts have set an average price target of $53.72 for USB stock. This represents a potential upside of 39.06% from current levels, suggesting confidence in the bank’s future despite economic headwinds.
These analyst ratings and price targets may change as experts update their coverage following the latest earnings report. The better-than-expected results could lead to more positive assessments.
US Bancorp’s ability to grow profits and revenue during a period of economic uncertainty speaks to its operational strength. The banking sector has faced various challenges, yet USB has managed to outperform expectations.
The successful leadership transition, combined with strong financial results, positions the company well for the coming quarters. However, as Kedia noted, macroeconomic concerns continue to loom over the banking industry.
With the Federal Reserve’s interest rate policies still in flux and economic indicators sending mixed signals, US Bancorp’s focus on risk management seems prudent. The coming quarters will reveal whether the bank can maintain its momentum in this challenging environment.
US Bancorp’s first quarter earnings totaled $1.603 billion, with revenue rising to $6.958 billion, exceeding analyst expectations and sending the stock higher despite ongoing economic concerns.
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