U.S. Bancorp.

Strong quarter performance (good): U.S. Bancorp reported record Q3 net revenue ~ $8B (+8.7% YoY) and diluted EPS $1.34 (+~10% YoY, 16% excluding reserve build impact ~ $0.07). Operating leverage was strong: expenses rose +7.1% YoY but revenue outpaced, implying ~440 bps positive operating leverage (excluding BTIG). Fees were a major driver: total fees ~44% of total revenue, and total fee income +14.9% YoY.

Fee + capital markets growth momentum (good/opportunity): Capital markets fees +69% YoY, reflecting a full quarter of BTIG and ~10% growth in legacy capital markets. BTIG acquisition (closed in June) contributed about $226M fee revenue in Q3. Company expects capital markets revenue to grow from ~8% to ~10%+ of total company revenue over the next 3–5 years, driven by organic growth, wallet-share deepening, and adding products across both platforms.

Net interest income/margin strengthening outlook (good/forecast): NII (fully taxable equiv.) +5.6% YoY and +2.3% QoQ, with NIM up 5 bps to 2.84%. Management expects NIM to increase by a similar amount in Q4. Key assumptions/drivers discussed: - Asset mix shifting more to floating-rate loans (floating rate earning assets ~30% of earning assets vs 22% four years ago) - Fixed-rate repricing tailwind: about $10B of fixed-rate assets repricing per quarter, contributing roughly ~125 bps improvement (management framing) - Deposit beta: assumed around ~50% initially, with potential to rise as additional hikes occur - Loans/deposits remained supportive: loans +1.0% sequentially, deposits +2.2% sequentially; deposit cost only modestly higher sequentially.