U.S. Bancorp

Strong beat on profitability & revenue mix (good; record results) - Q3 performance: record net revenue ~$8B (+8.7% YoY) and EPS $1.34 (+~10% YoY, or +16% excluding reserve build impact ~ $0.07). - Operating leverage: disciplined productivity drove ~240 bps positive operating leverage (and ~440 bps excluding BTIG / securities losses impacts). - Noninterest expense: +7.1% YoY but ~2.0% excluding BTIG, reflecting cost discipline. - Fee strength: fees = 44% of total revenue again; total fee income +14.9% YoY with broad-based categories. - Surprising/meaningful: strong operating leverage with heavy investments (marketing/tech) suggests revenue momentum is doing most of the heavy lifting.

Guidance: improved outlook for 2026 and strong Q4 expectations (good) - Q4 guidance (YoY): - NII (fully taxable equivalent): +6% to +7% - Total fee revenue: +13% to +14% (roughly half from BTIG) - Noninterest expense: ~+8% (~+4% excluding BTIG) - Full-year 2026 guidance updated: - Total net revenue growth: now +8% to +9% (or +6% to +7% excluding BTIG)—improved vs prior 5%–7%. - Positive operating leverage: ~300 bps for the year (~400 bps excluding BTIG) vs prior 200–300 bps. - Margin outlook: NIM expected to increase by a similar amount in Q4 (sequentially), consistent with the Q3 theme.

NII / margin drivers: asset sensitivity improving; specific assumptions disclosed (good, with detail) - Q3 NIM: expanded +5 bps to 2.84%. - What’s driving margin: - More floating/asset sensitivity: floating rate loans are ~30% of earning assets (up from 22% ~4 years ago). - Repricing benefit: management cited about $10B per quarter of fixed-rate assets repricing, expected to contribute roughly ~125 bps improvement (notably helped by rate backup). - Deposit beta assumption: ~50% deposit beta initially, likely rising with additional hikes. - Loan & deposit momentum feeding NII: - Loans +1.0% sequentially, deposits +2.2% sequentially. - Deposit pricing controlled: deposit costs +7 bps sequentially (only ~2 bps from September hike); total funding costs up just ~1 bp QoQ.