U.S. Bancorp, opens new tab reported a 13.6% jump in first-quarter profit, driven by higher interest income and fee revenue.

Loan growth ​has been quite strong across the industry in recent months ‌as a string of rate cuts by the U.S. Federal Reserve in the second half of 2025 encouraged businesses and consumers to take on more ​debt.

Net interest income — the difference between what a bank earns ​on loans and pays out on deposits — rose 4.2% to $4.26 billion ⁠in the quarter from a year earlier, underpinned by robust ​loan growth and record consumer deposits.

“Credit quality and capital levels remain healthy ​and strong,” CEO Gunjan Kedia said in a statement.

Fee revenue was also a bright spot. It surged 6.9% in the quarter as the bank benefited from robust ​capital markets activity.

Capital markets revenue surged 29% to $377 million in the ​quarter from a year earlier, driven by strong client-related derivative activity and corporate bond ‌underwriting ⁠fees.

The fifth-largest U.S. lender’s profit was $1.95 billion, or $1.18 per share, in the three months ended March 31, compared with $1.72 billion, or $1.03 per share, a year earlier.