By Arasu Kannagi Basil
Jan 20 (Reuters) – U.S. Bancorp CEO Gunjan Kedia warned on Tuesday that President Donald Trump’s proposed 10% cap on bank card rates of interest would considerably affect its shoppers and the broader economic system, echoing considerations raised by the banking trade.
“Our estimate is that 90 plus p.c of our shoppers will see a detrimental affect if there was an across-the-board 10% fee cap on bank cards. The affect to 50% of the shoppers shall be crushing, as it is going to be for the economic system,” Kedia informed analysts.
The feedback come as traders await readability on whether or not the January 20 deadline for the speed cap would take impact. Wall Avenue analysts have mentioned the proposed transfer would require laws and is unlikely to cross.
“The one considerably viable possibility is that if the administration can get the trade to succeed in some sort of negotiated compromise,” mentioned Sanjay Sakhrani, KBW managing director.
Kedia mentioned the dialog across the fee cap has shifted extra productively in latest days in the direction of choices to assist clients within the quick time period.
The financial institution is among the largest U.S. bank card issuers. It ended 2025 with $31 billion in bank card loans and is especially a primary lender.
The fifth-largest U.S. lender can also be exploring methods to extend monetary schooling to make sure clients are conscious of what choices they’ve, Kedia mentioned.
Requested concerning the reintroduction of the proposed Credit score Card Competitors Act, Kedia mentioned the proposal could be “very pricey for a lot of small retailers and never obtain the purpose meant.”
PROFIT BEAT
The financial institution’s fourth-quarter revenue beat analysts’ expectations because it earned extra from curiosity funds and noticed progress in payment income.
The Federal Reserve’s fee cuts have lifted mortgage demand throughout the trade and boosted earnings at Wall Avenue’s prime shopper banks.
On a per share foundation, U.S. Bancorp earned $1.26 within the quarter, topping estimates of $1.19, in line with knowledge compiled by LSEG.
Excluding the proposed acquisition of BTIG, U.S. Bancorp expects between 4% and 6% income progress in 2026.
(Reporting by Arasu Kannagi Basil in Bengaluru; Enhancing by Pooja Desai and Maju Samuel)
