U.S. Bancorp Depositary Shares,

Strong results & upside vs prior expectations (what’s good): Record net revenue ~ $8B (+8.7% YoY, ~+6.4% excluding BTIG fee revenue and securities losses) and diluted EPS $1.34 (+10% YoY, +16% excluding a reserve build of ~$0.07). Expenses +7.1% YoY but delivered ~440 bps positive operating leverage (ex-BTIG). Management emphasized momentum while staying within medium-term target ranges.

Guidance for Q4 and full-year 2026 (forecasts/outlook): - Q4 (YoY): NII +6%–7% (FTE), total fees +13%–14% (about half from BTIG), noninterest expense ~+8% (~+4% excluding BTIG). - Full-year 2026: Total net revenue +8%–9% (+6%–7% excluding BTIG)—up from prior guidance (5%–7%). Operating leverage ~300 bps (~400 bps ex-BTIG)—also improved vs prior guidance (200–300 bps).

Net interest income & margin focus—expected to keep rising (opportunity + key assumptions): NIM expanded +5 bps to 2.84%; they expect similar NIM improvement in Q4. Drivers: improving asset/funding mix, relationship-based loan & deposit growth, and fixed-asset repricing. They quantified repricing as ~$10B of fixed-rate assets repricing per quarter contributing roughly ~125 bps improvement (directionally). Deposit beta assumption ~50% initially and “picking up” after the last hike, with possible further hikes in the forecast.