US Bancorp CEO warns of big hit to clients from Trump's credit card cap

By Arasu Kannagi Basil

Jan 20 (Reuters) - U.S. Bancorp CEO Gunjan Kedia warned connected Tuesday that President Donald Trump's projected 10% headdress connected recognition paper ​interest rates would importantly interaction its clients and the broader economy, echoing concerns ‌raised by the banking industry.

"Our estimation is that 90 positive percent of our clients volition spot a ‌detrimental interaction if determination was an across-the-board 10% complaint headdress connected recognition cards. The interaction to 50% of the clients volition beryllium crushing, arsenic it volition beryllium for the economy," Kedia told analysts.

The comments travel arsenic investors await clarity connected whether the January 20 ⁠deadline for the complaint headdress ‌would instrumentality effect. Wall Street analysts person said the projected determination would necessitate authorities and is improbable to pass.

"The lone somewhat viable ‍option is if the medication tin get the manufacture to scope immoderate benignant of negotiated compromise," said Sanjay Sakhrani, KBW managing director.

Kedia said the speech astir the complaint headdress has shifted much ​productively successful caller days towards options to assistance customers successful the abbreviated term.

The slope ‌is 1 of the biggest U.S. recognition paper issuers. It ended 2025 with $31 cardinal successful recognition paper loans and is chiefly a premier lender.

The fifth-largest U.S. lender is besides exploring ways to summation fiscal acquisition to guarantee customers are alert of what options they have, Kedia said.

Asked astir the reintroduction of the projected Credit Card Competition ⁠Act, Kedia said the connection would beryllium "very costly ​for galore tiny merchants and not execute the extremity ​intended."

PROFIT BEAT

The bank's fourth-quarter nett bushed analysts' expectations arsenic it earned much from involvement payments and saw maturation successful interest revenue.

The Federal Reserve's ‍rate cuts person lifted ⁠loan request crossed the manufacture and boosted net astatine Wall Street's apical user banks.

On a per stock basis, U.S. Bancorp earned $1.26 successful the quarter, topping estimates ⁠of $1.19, according to information compiled by LSEG.

Excluding the projected acquisition of BTIG, U.S. Bancorp expects betwixt 4% ‌and 6% gross maturation successful 2026.

(Reporting by Arasu Kannagi Basil successful Bengaluru; ‌Editing by Pooja Desai and Maju Samuel)