U.S. Bancorp (USB) investor relations material

Market and economic outlook

• Economic conditions remain resilient with strong consumer spending and robust credit quality across client segments.

• Business sentiment is strong and strengthening, with companies adapting well to macro uncertainties and investing in M&A and CapEx.

• Commercial real estate pipelines are growing, with deceleration in paydowns and increased activity in retail, industrial, and multifamily sectors.

• Companies have become more nimble post-pandemic, adjusting supply chains and balance sheets quickly in response to market changes.

Financial performance and guidance

• Net interest income and fee income are expected at the high end of guidance ranges for Q1, driven by strong loan growth and capital markets activity.

• Expenses are projected to grow about 1% year-over-year, supporting meaningful positive operating leverage.

• Loan growth is concentrated in card, C&I, and commercial real estate, with mortgage paydowns offsetting some gains.

• Net interest income outlook for the year is positive, supported by higher-yielding loan mix and ongoing deposit growth initiatives.

Strategic initiatives and acquisitions

• Acquisition of BTIG fills a key product gap in equity and advisory, enhancing the ability to advise clients across the full capital structure.

• BTIG integration is expected to close in Q2, bringing $175M-$200M in revenue and being slightly accretive to EPS this year.

• Capital markets business is projected to grow at low double digits, leveraging a broader product set and global distribution.