U.S. Bancorp

Strong beat on operating leverage + revenue, supported by fees & productivity - Q3 results: record net revenue ~$8B (+8.7% YoY) and diluted EPS $1.34 (+10% YoY); ~$0.07 reserve-build impact (EPS +16% excluding that impact). - Operating leverage: expenses +7.1% YoY, but that translated to ~240 bps positive operating leverage (and ~440 bps positive leverage excluding BTIG). - Fees drove results: fee complex = 44% of total revenue, diversified, with fee income +14.9% YoY.

Outlook: 2026 guidance raised; Q4 growth expected with manageable cost growth - Q4 (YoY): - NII growth +6% to +7% (taxable-equivalent). - Total fee revenue +13% to +14% (about half from BTIG). - Noninterest expense +~8% (or ~4% excluding BTIG). - Full-year 2026 guidance raised: - Total net revenue growth +8% to +9% (+6% to +7% excluding BTIG) vs prior 5%–7%. - Positive operating leverage ~300 bps (~400 bps excluding BTIG) vs prior 200–300 bps. - Notable: they expect NIM to rise again in Q4 by a similar amount to Q3.

Net interest income / margin ramp is a core opportunity (and a key execution lever) - NIM: 2.84%, up +5 bps sequentially; driven by mix/asset sensitivity and fixed asset repricing benefits. - Guidance mechanism: expect NII to benefit from continued loan & deposit relationship growth plus repricing. - Rate sensitivity details (management estimates): - ~$10B/quarter of fixed-rate earning assets repricing with ~125 bps improvement contribution (timing/impact described as coming through the quarter). - Deposit beta assumed ~50% initially after the last hike, with betas expected to pick up with further hikes. - 2027 NIM ambition: reiterate a path toward ~3% NIM at some point in 2027, contingent on ongoing asset/liability mix improvement and repricing.