Question · Q1 2025
Pui Mong from Bank of America asked about the US cards margin outlook if the Fed cuts rates more aggressively than expected. She also questioned the path to the >12% RoTE target for 2026, asking where consensus might be too pessimistic.
Answer
Executive Angela Cross explained that US cards' interest rate risk is hedged, with the offset appearing in non-NII, protecting overall income from margin compression. She reaffirmed confidence in the 2026 targets, citing diversified income growth, cost control, and an impairment outlook expected to remain within the guided 50-60 basis point range.
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