Capital One CEO praises resiliency of US consumer, but sees ‘worrying signs’

Richard Ferbank, CEO of Capital One on Tuesday, shared his view on how to comment American consumers during the quarter -profit call to the financial institution.

One analyst was asked how to see one capital about the state of the American consumer in light of concerns about the market for the Trump administration definitions.

Verbank said the American consumer “is still a source of power in the economy,” adding that this is “true for almost any scale we look at.”

Richard Ferbank, CEO of Capital One on Tuesday, shared his view on how to comment American consumers during the quarter -profit call to the financial institution. (Joe Raedle / Getty Images / Getty Images)

“Consumer debts that serve stable burdens are still near prenatal levels,” he said. “In our cards wallet, we are witnessing improved delinquency rates, reducing delinquency entries, and improving payment rates on an annual basis.”

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“Some consumers pockets feel pressure from the cumulative effects of inflation and higher interest rates,” Verbank said, but he generally believes that the American consumer “is in good condition.”

Capital One Officer noticed that the share of customers who pay their credit cards was “somewhat exceeding levels of prenatal”, which means that inflation rates and interest rates were weighing some of them.

When it comes to the role of rates, Verbank said they had “settled over the past year” but they were “less than prenatal levels of our main products and sectors,” something he said is “another health indicator.”

He also discussed the trends that the capital saw in consumer spending during the first quarter.

“The spending trends were largely stable during the end of the first quarter,” Verbank told analysts and investors. “In recent weeks, we have begun to see an increase in growth for every customer for this time last year across our customer sectors.”

He also discussed the trends that the capital saw in consumer spending during the first quarter. (Kena Betancur / Viewpress / Getty Images)

It is partly attributed to Easter date later this year.

“We have also seen a recent increase in retail spending, especially electronics in the past few weeks,” Ferbank said.

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He said that this may come from consumers who make purchases early in response to the customs tariff, but “we will have to see over time.”

Meanwhile, spending in “T& E” and Airfare slowed down, according to Fairbank.

He also said: “Although it is early, when we look at industry data, it seems that there is some clouds forward in automatic purchases, as consumers try to advance the effects of customs tariffs. We continue to monitor the sizes of our application and creation.” “I also think that there is some early signal that auction prices are increasing more than seasonal standards. All this is very early, but this will be what we see in the margin correctly.”

president Donald Trump revealed a 25 % tariff on imported passenger vehicles and light trucks last month, as well as a tax of the same size on some automatic imports.

Trams warning for consumers and companies at an association.

The tariff on vehicles and trucks imported entered into force on April 3.

President Donald Trump revealed a 25 % tariff on imported passenger vehicles and light trucks last month. (Francis Chung/Politico/Bloomberg via Getti Pictures/Getty Pictures)

In early April, Trump put a 90 -day stand on mutual definitions and chose to apply a 10 % duty during that period to countries that did not decrease against the United States due to mutual definitions. At the same time, raising the definitions on China to 145 %.