Citigroup is exploring the launch of a new credit card product capped at a 10% annual percentage rate for an initial 12-month period, according to Bloomberg. This proposal follows President Trump’s recent directive to impose a 10% cap on consumer credit card rates for one year. People familiar with the matter report that Citigroup executives have convened cross-functional working groups over the past two weeks to model the financial impact, assessing potential reductions in interest income versus retention gains among cardholders. No formal decision has been made, and the bank continues to engage with Treasury officials to gauge regulatory expectations.

Should Citigroup move forward, the 10% APR offering could affect as much as 20% of the bank’s outstanding credit card receivables, based on internal segmentation data showing that roughly $75 billion of Citi’s $370 billion consumer card portfolio carries rates above 15%. Management forecasts suggest a potential revenue shortfall of $500 million to $700 million over the cap period, offset partially by a projected 5% to 10% increase in new account originations if the rate is rolled out. The bank’s credit card unit accounts for nearly one-quarter of annual consumer banking revenues, highlighting the strategic importance of any rate adjustment.

Following reports of the 10% cap proposal, Citigroup shares rose approximately 1.8% in a single session, outperforming the broader bank index by 40 basis points. Analysts at Jefferies and Morgan Stanley have maintained Neutral ratings on the stock, citing potential margin pressure but acknowledging that a capped-rate product could strengthen customer retention and cross-sell metrics. Jefferies estimates a 2026 earnings per share impact of $0.10 to $0.15, while Morgan Stanley projects a longer-term lift of 50 to 75 basis points in consumer banking net promoter scores and card activation rates.