By Arasu Kannagi Basil
Jan 20 (Reuters) – US Bancorp Chief Executive Gunjan Kedia warned on Tuesday that President Donald Trump’s proposed 10% cap on credit card interest rates would significantly impact its customers and the broader economy, echoing concerns raised by the banking industry.
“Our estimate is that more than 90 percent of our customers will see a detrimental impact if there were an overall 10 percent rate cap on credit cards. The impact for 50 percent of customers will be crushing, as will it be for the economy,” Kedia told analysts.
The comments come as investors wait for clarity on whether the Jan. 20 deadline for the rate cap would take effect. Wall Street analysts have said the proposed measure would require legislation and is unlikely to pass.
“The only viable option is for the administration to get the industry to reach some kind of negotiated agreement,” said Sanjay Sakhrani, CEO of KBW.
Kedia said the rate cap conversation has shifted more productively in recent days toward options to help customers in the short term.
The bank is one of the largest credit card issuers in the United States. It ended 2025 with $31 billion in credit card loans and is primarily a primary lender.
The fifth-largest U.S. lender is also exploring ways to increase financial education to ensure customers know the options they have, Kedia said.
When asked about the reintroduction of the proposed Credit Card Competition Act, Kedia said the proposal would be “very costly for many small merchants and would not achieve its intended objective.”
EXCEEDING PROFITS
The bank’s fourth-quarter earnings beat analysts’ expectations as it earned more on interest payments and saw growth in fee income.
The Federal Reserve’s rate cuts have lifted demand for loans across the industry and boosted profits at Wall Street’s top consumer banks.
On a per-share basis, US Bancorp earned $1.26 for the quarter, beating estimates of $1.19, according to data compiled by LSEG.
Excluding the proposed acquisition of BTIG, US Bancorp expects revenue growth of between 4% and 6% in 2026.
(Reporting by Arasu Kannagi Basil in Bengaluru; Editing by Pooja Desai and Maju Samuel)