U.S. Bancorp

Strong Q3 performance with upside vs prior trend (what’s good): - Record net revenue ~$8B (+8.7% YoY). - EPS $1.34 (+10% YoY; ~$0.07 reserve-build impact this quarter; +16% excluding reserve build). - Operating leverage materially positive: ~240 bps positive on productivity. - Total payments revenue +6.5% YoY; fees again ~44% of total revenue.

Guidance and outlook (what to expect next): - Q4 2026 (YoY): - NII growth ~6–7% (FTE) - Total fee revenue growth ~13–14%, with ~half from BTIG - Noninterest expense growth ~8% (~4% excluding BTIG) - Full-year 2026: - Total net revenue growth now ~8–9% (~6–7% excluding BTIG), improved from prior ~5–7% guidance. - Positive operating leverage now ~300 bps for the year (~400 bps excluding BTIG), improved from prior 200–300 bps. - Margin: Company expects NIM to increase by a similar amount in Q4 (Q3 NIM 2.84%, +5 bps sequentially), with a longer-term path toward ~3% NIM by 2027.

Drivers of NII/margin: loan + deposit mix and repricing (key opportunity): - Loans up +1.0% sequentially and grew ~8.0% YoY (notably C&I, credit card, and CRE—relationship lending that supports fee opportunities). - Deposits up +2.2% sequentially (+2.9% YoY) with continued strength in consumer and small business and improving funding mix while staying disciplined on pricing. - Deposit beta assumption: about ~50% initially after hikes, with possible additional hikes embedded (“betas pick up right where they left off”). - Fixed asset repricing benefit: management cited roughly ~$10B per quarter of fixed-rate assets repricing, tied to an ~125 bps improvement contribution (how rates/curve affects NII).