PrintSynchrony CEO warns rate cap will hit credit access for lower income households
BY Reuters | ECONOMIC | 01/27/26 10:02 AM ESTBy Arasu Kannagi Basil and Ateev Bhandari
Jan 27 (Reuters) -
Synchrony Financial's
"A cap would require issuers to ?significantly reduce the amount of credit they're able to provide and ?that disproportionately impacts the consumers at the lower income levels," ?Doubles said, echoing ?sentiments shared by Wall Street analysts and titans alike.
Shares of the Stamford, Connecticut-based company ?fell 4.6% in early trading.
Doubles' comments are ?the latest in a wave of industry pushback to President Donald Trump's threat to
cap interest rates on consumer ?credit cards at 10%
ahead of ?this year's ?congressional elections.
"There's no question this would be very bad for the economy," Doubles added.
JPMorgan Chase CEO Jamie Dimon last week said ?the move would be "an economic disaster." Still, some large banks have
begun weighing credit cards priced at 10% interest
as a potential alternative to a broader cap.
As the credit-card issuer for retailers like Walmart, Sam's Club, and Lowe's, Synchrony's results offer a window into ?the financial health ?of the average American household, with middle-class purchasing power stalling even as high-income spending remains robust.
Net interest income, the difference ?between what a lender earns on loans and pays on deposits, rose 3.7% to $4.76 billion in the quarter, slightly below estimates of $4.77 billion, according to LSEG data.
Profit was $751 million, or $2.04 per share, in the three months ended December 31, compared with $774 million, or $1.91 per share, a year earlier.
Synchrony's other expenses rose ?10% to $1.40 billion, as the company spent more on employee costs and technology investments. The quarter also included a $67 million restructuring charge tied to a voluntary employee early-retirement program.
(Reporting by ?Arasu Kannagi Basil and Ateev Bhandari in Bengaluru; Editing by Tasim Zahid)
