- U.S. Bancorp (USB, Financial) announces a preliminary stress capital buffer (SCB) of 2.6% following the 2025 stress test.
- The company plans a 4% quarterly dividend increase to $0.52 per share, pending board approval.
- U.S. Bancorp continues its $5 billion share repurchase program.
U.S. Bancorp (USB) recently disclosed the results of the Federal Reserve's Dodd-Frank Act Stress Test (DFAST) demonstrating a preliminary stress capital buffer (SCB) of 2.6% for the period starting October 1, 2025, through September 30, 2026. This SCB is part of the Dodd-Frank Wall Street Reform and Consumer Protection Act requirements.
The company's Basel III Common Equity Tier 1 (CET1) ratio, required to remain at or above 7.1%, reflects its robust capital condition. As of March 31, 2025, U.S. Bancorp's CET1 capital to risk-weighted assets using the Basel III standardized approach was 10.8%, surpassing the "well-capitalized" threshold established by regulators.
U.S. Bancorp is planning a 4% quarterly dividend increase from $0.50 to $0.52 per share, subject to the board's approval, effective in the third quarter of 2025. Moreover, the company will continue its $5 billion share repurchase program, highlighting its commitment to returning value to shareholders.
Gunjan Kedia, President and CEO of U.S. Bancorp, stated, "The results of this year’s stress test demonstrate that we are well-capitalized, have a healthy balance sheet, and remain prepared to manage potential industry stress and withstand a severe economic downturn."
Headquartered in Minneapolis, U.S. Bancorp serves millions of customers through a diverse array of services, including consumer banking, business banking, and wealth management. The company holds $676 billion in assets and is recognized for its commitment to digital innovation and community partnerships.
