Earnings Per Common Share (EPS)

12 Months Ended

Dec. 31, 2025

EARNINGS PER COMMON SHARE (EPS)

EPS is calculated using the two-class method. Under the two-class method, all earnings (distributed and undistributed) are allocated to common shares and participating securities. Undistributed earnings are calculated after deducting dividends on preferred shares, common shares and RSUs. RSUs granted under our 2016 Incentive Compensation Plan generally entitle recipients to receive nonforfeitable dividends during the vesting period on a basis equivalent to dividends on common shares. These unvested awards meet the definition of participating securities based on their respective rights to receive nonforfeitable dividends, and they are treated as a separate class of securities and are not included in computing basic EPS. Diluted EPS is also calculated under the treasury stock method and the more dilutive amount is reported. Participating securities are not included as incremental shares in computing diluted EPS.

The computations of basic and diluted EPS for the years ended December 31 were as follows:

TABLE 20.1: COMPUTATION OF BASIC AND DILUTED EARNINGS PER SHARE


(Millions, except per share amounts)	2025		2024		2023
Numerator:
Basic and diluted:
Net income	$	10,833	$	10,129	$	8,374
Preferred dividends	(58)		(58)		(58)

Net income available to common shareholders	10,775		10,071		8,316
Earnings allocated to participating share awards	(74)		(76)		(64)
Net income attributable to common shareholders	$	10,701	$	9,995	$	8,252
Denominator:
Basic: Weighted-average common stock	695		712		735
Add: Weighted-average stock options (a)	1		1		1
Diluted	696		713		736
Basic EPS	$	15.41	$	14.04	$	11.23
Diluted EPS	$	15.38	$	14.01	$	11.21

(a)The dilutive effect of unexercised stock options excludes from the computation of EPS 0.16 million, 0.05 million and 1.38 million of options for the years ended December 31, 2025, 2024 and 2023, respectively, because inclusion of the options would have been anti-dilutive.