US Bancorp Stock: Lags Behind Financial Services Sector Amid Mixed Q2 Results

US Bancorp's stock has surged 12% over the past three months, outperforming the Financial Services Select Sector SPDR Fund's 6.4% gains. However, over the longer term, the stock has lagged behind the sector. US Bancorp's Q2 results showed a modest 69 bps year-over-year growth in net interest income, but a 3.9% uptick in non-interest income. The company's EPS surged 14.4% year-over-year to $1.11, surpassing consensus estimates.

US Bancorp (USB) has seen a significant rise in its stock price over the past three months, surging 12% and outperforming the Financial Services Select Sector SPDR Fund (XLF) by 5.6 percentage points. However, over the longer term, USB's stock has lagged behind the sector, with a year-to-date (YTD) gain of 2.8% compared to XLF's 11.9% surge in 2025 [2].

The company's second-quarter (Q2) results were mixed. While net interest income grew by a modest 69 basis points (bps) year-over-year (YoY) to $4.1 billion, non-interest income saw a notable 3.9% uptick YoY to $2.9 billion. Overall, USB's topline came in at $7 billion, up 2% YoY, falling 84 bps below the Street's expectations. However, the company's earnings per share (EPS) surged 14.4% YoY to $1.11, surpassing consensus estimates by 3.7% [2].

Despite the mixed Q2 results, USB stock maintained a positive momentum following the initial dip, trading mostly above its 50-day and 200-day moving averages since early May and August, respectively [2].

US Bancorp's strategic re-entry into the cryptocurrency custody market, following the repeal of the SEC’s Staff Accounting Bulletin No. 121 (SAB 121), may also be a contributing factor to its stock performance. The bank has resumed its cryptocurrency custody services, positioning itself as a key player in the institutional crypto custody space. This move follows the repeal of a burdensome regulatory framework under the Trump administration, which had previously made it costly for banks to hold digital assets on behalf of clients [3].

The regulatory shift has allowed banks to expand their offerings, with USB now providing custody for Bitcoin to registered investment funds and ETF providers. The bank’s custody solution, launched in collaboration with fintech firm NYDIG, is designed for institutional clients and aims to scale as demand for crypto-related services grows. Stephen Philipson, head of US Bank’s institutional division, stated that the service could extend to other cryptocurrencies meeting the bank’s risk and compliance standards. Additionally, the bank is exploring the integration of digital assets into wealth management and consumer payment systems [3].

The broader industry trend of traditional banks re-entering the crypto space under more favorable conditions may also be a factor in USB's stock performance. Other major banks, including BNY Mellon and Citigroup, have also entered the crypto custody market, with BNY Mellon launching a digital custody platform in 2022 and Citigroup reportedly considering similar offerings [3].

References:
[1] https://bitcoinist.com/us-bancorp-resumes-bitcoin-custody-services/
[2] https://www.barchart.com/story/news/34616948/us-bancorp-stock-is-usb-underperforming-the-financial-services-sector
[3] https://www.ainvest.com/news/bitcoin-news-today-regulatory-shift-lets-bancorp-reclaim-crypto-custody-crown-2509/