U.S. Bancorp: Attractive As It Solves Its Capital Weakness

Jun. 18, 2025 12:15 PM ETU.S. Bancorp (USB) StockUSB3 Comments
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Summary

  • U.S. Bancorp is progressing on capital build, but the transition to Category 2 status delays buybacks and constrains returns near term.
  • Earnings and core franchise remain solid, with strong deposit growth, expense control, and excellent credit quality supporting stability.
  • Capital accumulation is a matter of patience. As USB nears regulatory thresholds, buybacks and multiple expansion should resume by late 2026.
  • With 15–20% upside potential over the next year as capital concerns fade, I remain a buyer, expecting fair value to reach $52.

US Bank ATM and branch

Sundry Photography

Shares of U.S. Bancorp (NYSE:USB) have been a moderate performer over the past year, adding 9%, though the stock remains well below its post-election highs. Given its capital position, USB is a comparatively poorly positioned bank, which is why hopes of

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