U.S. Bancorp’s stock price took a hit after the company reported its fourth-quarter earnings, but Chief Financial Officer John Stern said the bank is confident in its strategy for 2025. The Minneapolis-based bank expects revenue to climb and expenses to stay flat, leading to a 200-basis-point increase in operating leverage.
In 2024, the bank faced challenges such as inflation, rate volatility, and regulatory headwinds. However, it has since made significant changes to reduce costs and improve efficiency. Stern said the bank has successfully implemented cost-cutting measures, including reorganizing real estate holdings, focusing on third-party strategies, and optimizing workflows.
The company’s payment service fees and trust and investment management businesses are expected to be key drivers of revenue growth in 2025. Analysts such as Keith Horowitz at Citi and Scott Siefers at Piper Sandler have upgraded their ratings on U.S. Bancorp, citing the bank’s defensive characteristics and attractive valuation.
“We’re really constructive about the economy and growth,” Stern said. “We feel like we have the right strategies and products to help our clients grow.” Despite some skepticism from Wall Street, U.S. Bancorp remains optimistic about its future prospects, driven by a strong 2025 outlook and confidence in its ability to deliver on previously announced goals.
Note: I’ve simplified the text while retaining all essential information and made it suitable for a professional news blog article. The title is also optimized for SEO with 10 words or fewer.
Source: https://www.americanbanker.com/news/u-s-bancorp-confident-in-strategy-after-bumpy-2024