U.S. Bancorp's Capital Markets Expansion leverages high volatility to drive revenue

U.S. Bancorp's Common Equity Tier 1 capital ratio will decrease by 12 basis points at the closing of its $1 billion acquisition of BTIG, LLC. The bank is adding institutional equity sales and trading, equity capital markets, and electronic trading, and mergers and acquisitions advisory to its existing offerings. This expansion into capital markets is occurring as equity market volatility remains high across asset classes including commodities, bonds and foreign exchange. High volatility aided capital markets revenue growth in the first quarter, with the Zacks Consensus Estimate for those revenues pegged at $428.1 million, a 12.1% increase from the year-ago quarter. This growth is supported by the Federal Reserve keeping interest rates unchanged in the first quarter of 2026, which stabilized funding and deposit costs and supported net interest income growth. Net interest income is estimated at $4.28 billion. The acquisition of BTIG, LLC will have a minimal impact on earnings per share in 2026.