By Prakhar Srivastava and Tatiana Bautzer
Feb 11 (Reuters) – Citigroup incoming Chief Financial Officer Gonzalo Luchetti said on Wednesday that he sees continued growth in the bank’s credit card business, but warned that a proposed interest-rate cap would have “massive ripple effects” across the U.S. economy.
Speaking at the Bank of America Securities Financial Services Conference, Luchetti said credit cards will be among Citi’s top priorities in 2026.
He cautioned that an interest-rate cap “could have material impacts” on credit lines and the availability of credit, particularly for lower-income borrowers and customers with lower FICO scores.
Such a move would also have “massive ripple effects” across retail, hospitality and travel, he added.
However, Luchetti said the bank is focused on expanding its presence among affluent customers, including by developing rewards cards tailored to higher-income clients.
He added the bank will update its strategy on the credit card business, which became independent after being separated from retail, at the investor day expected on May 7.
Citi reshaped its cards unit to prioritize general-purpose cards while maintaining private-label offerings under a unified strategy.
Luchetti said the bank expects mid-single-digit growth in the deposits side, services and wealth, as well as in cards and wealth for the loans side, which it views as high-return businesses.
While anticipated interest-rate cuts are likely to weigh on income, that impact has already been factored into the bank’s guidance, he said.
“We continue to see U.S. consumer resilience early in the year.”
He also said transformation cost peaked last year and is expected to fall as temporary expenses that surged due to the transformation program are starting to roll off.
Stranded costs linked to business exits and legacy franchise decisions will continue to work through, while automation improves efficiency, Luchetti said.
(Reporting by Prakhar Srivastava and Tatiana Bautzer in New York in Bengaluru; Editing by Arun Koyyur and Alan Barona)
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