Big banks post higher profits, while Trump presses 10% credit cap

Big banks see profit gains as Trump pressures credit-card rates

Bank of America, Citigroup and Wells Fargo reported higher profits and pointed to steady consumer and business activity in their latest earnings, even as their relationship with President Donald Trump has become strained around credit-card pricing and broader financial policy.

In remarks accompanying their results, bank executives said they are watching risks but remain upbeat about the U.S. economy in 2026. Bank of America Chief Executive Brian Moynihan said in a statement that “while any number of risks continue, we are bullish on the U.S. economy in 2026,” and he said businesses and consumers are “proving resilient.”

Citigroup Chief Financial Officer Mark Mason told reporters that “The U.S. economy is doing just fine.” He added, “There’s downside risks out there, geopolitical risks in particular,” but said that looking at the economy “holistically,” it had “managed uncertainty and risks in a resilient type fashion.”

Trump had previously backed the banks through a deregulatory push and through tax cuts, but in recent days the banks have found themselves in conflict with the White House. The clash includes Trump’s comments about capping credit-card interest rates at 10% and his support for a Justice Department investigation into Federal Reserve Chair Jerome Powell, an issue bankers described as a threat to the central bank’s independence.

Bank leaders said they have large, profitable credit-card operations, and they argued that a rate cap would be difficult to implement without constraining credit. Mason said, “Affordability is a big issue and we look forward to collaborating with the administration on ways we can address this,” but he added that “an interest rate cap is not something we could or would support,” saying it “would restrict credit to those who need it the most” and would have “a delirious impact on the economy.”

The banks also said they were not seeing evidence of a widening divide in which higher-income households pull away while lower-income consumers fall behind. They pointed instead to consumer spending and to credit-performance indicators such as delinquencies and charge-offs, describing those metrics as stable. They also said dealmaking activity has remained healthy, helping support investment banking revenue and fee levels across the sector.

Bank of America posted profit of $7.6 billion, or 98 cents per share, up from $6.8 billion, or 83 cents per share, in the same period a year earlier. The bank reported revenue of $28.4 billion and said its credit and debit card spending increased by 6%, while credit card balances rose 3% year over year to $103 billion; it also reported retail deposits of $945.4 billion.

Wells Fargo earned $5.36 billion, or $1.62 per share, compared with $5.08 billion, or $1.43 per share, a year earlier, on revenues of $21.3 billion. The bank reported consumer loan growth and more activity on its credit cards, while saying delinquencies and charge-offs were relatively stable as it navigated the policy fight over credit-card interest rates.