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U.S. Bancorp Reports Record Quarter as BTIG Deal and Amazon Portfolio Shift Fees Higher

Management says the transactions mark a deliberate move to boost fee revenue and margins even as the bank prepares for near-term reserve and integration costs.

Overview

  • U.S. Bancorp, which reported results Thursday, recorded net revenue of $7.71 billion and profit of $2.18 billion driven by 7.7% higher net interest income and about 7.1% average loan growth.
  • The bank completed its purchase of investment bank BTIG in June and BTIG generated roughly $98 million in its first month, helping capital-markets fees rise to $512 million for the quarter.
  • U.S. Bancorp expects to become the issuer of Amazon Business and Business Prime cards and to close the Amazon Small Business portfolio in mid-August, which management projects will add about $75–85 million of quarterly revenue.
  • Management raised full-year revenue guidance to 7%–9% and said it sees net interest margin moving toward the low 3% range over time while planning for about $160 million in Q3 reserves tied to the Amazon portfolio and roughly $60 million of BTIG integration costs in H2 2026.
  • Record consumer deposits and improving credit quality give the bank room to expand branches in selected markets and to push capital-markets to roughly 10% of company revenue through cross-selling and the BTIG platform.