Demand for data used in hiring, consumer lending and mortgages drove growth that was stronger than expected in the first quarter at\u00a0Equifax.
\nThe global data, analytics and technology company saw its first-quarter revenue come in at $37 million above the midpoint of the guidance it provided in February, executives said Tuesday (April 22) during Equifax\u2019s quarterly earnings call.
\nTwo-thirds of the outperformance came from the company\u2019s non-mortgage business and one-third from its mortgage business, Equifax CEO\u00a0Mark W. Begor said during the call.
\nEquifax saw its\u00a0Non-Mortgage\u00a0revenue grow 6%, driven by strong gains in its Talent Solutions and Consumer Lending businesses and better-than-expected gains in its Government business, according to a Tuesday\u00a0earnings release.
\nThe company\u2019s U.S. Mortgage business saw 7% revenue growth during the quarter, per the release.
\nBegor said during the call that he attributed this growth to increasing penetration and performance of the company\u2019s mortgage pre-qualification and pre-approval products, a market that was about 400 basis points higher than Equifax expected in February, and a decline of about 30 basis points in mortgage rates in late February and March.
\n\u201cWe believe this improvement was likely led by higher mortgage refi activity off the lower mortgage rates,\u201d Begor said during the call.
\nEquifax\u2019s Talent Solutions business saw revenue growth of 12% during the quarter, which Begor attributed to \u201cbetter hiring volumes in February and March, as well as easier comps versus first quarter last year.\u201d
\nThe company sees opportunities to grow its\u00a0Government business due to the new administration\u2019s emphasis on efficiency in the federal government. For example, Equifax provides the Social Security Administration with a solution that delivers income and employment information for people applying for or receiving disability benefits.
\n\u201cThere\u2019s a clear change in Washington around social service and tax integrity, waste and abuse, which we view as a positive macro for Workforce Solutions,\u201d Begor said.
\nWhile the company outperformed its February guidance, Equifax did not change its full-year 2025 guidance because of the uncertain conditions in the macroeconomic environment and the markets caused primarily by tariffs, according to the earnings release.
\n\u201cGiven the strength in the first quarter in our current run rates and key verticals, we would normally be increasing our 2025 revenue and adjusted EPS guidance,\u201d Begor told analysts during the call. \u201cBut given the significant uncertainty in the economy and with consumer and corporate confidence, we are maintaining our 2025 guidance at the levels we provided to you in February.\u201d
\nThe post Equifax: Data for Hiring and Mortgage Refis Drive Stronger-Than-Expected Growth appeared first on PYMNTS.com.
\n", "content_text": "Demand for data used in hiring, consumer lending and mortgages drove growth that was stronger than expected in the first quarter at\u00a0Equifax.\nThe global data, analytics and technology company saw its first-quarter revenue come in at $37 million above the midpoint of the guidance it provided in February, executives said Tuesday (April 22) during Equifax\u2019s quarterly earnings call.\nTwo-thirds of the outperformance came from the company\u2019s non-mortgage business and one-third from its mortgage business, Equifax CEO\u00a0Mark W. Begor said during the call.\nEquifax saw its\u00a0Non-Mortgage\u00a0revenue grow 6%, driven by strong gains in its Talent Solutions and Consumer Lending businesses and better-than-expected gains in its Government business, according to a Tuesday\u00a0earnings release.\nThe company\u2019s U.S. Mortgage business saw 7% revenue growth during the quarter, per the release.\nBegor said during the call that he attributed this growth to increasing penetration and performance of the company\u2019s mortgage pre-qualification and pre-approval products, a market that was about 400 basis points higher than Equifax expected in February, and a decline of about 30 basis points in mortgage rates in late February and March.\n\u201cWe believe this improvement was likely led by higher mortgage refi activity off the lower mortgage rates,\u201d Begor said during the call.\nEquifax\u2019s Talent Solutions business saw revenue growth of 12% during the quarter, which Begor attributed to \u201cbetter hiring volumes in February and March, as well as easier comps versus first quarter last year.\u201d\nThe company sees opportunities to grow its\u00a0Government business due to the new administration\u2019s emphasis on efficiency in the federal government. For example, Equifax provides the Social Security Administration with a solution that delivers income and employment information for people applying for or receiving disability benefits.\n\u201cThere\u2019s a clear change in Washington around social service and tax integrity, waste and abuse, which we view as a positive macro for Workforce Solutions,\u201d Begor said.\nWhile the company outperformed its February guidance, Equifax did not change its full-year 2025 guidance because of the uncertain conditions in the macroeconomic environment and the markets caused primarily by tariffs, according to the earnings release.\n\u201cGiven the strength in the first quarter in our current run rates and key verticals, we would normally be increasing our 2025 revenue and adjusted EPS guidance,\u201d Begor told analysts during the call. \u201cBut given the significant uncertainty in the economy and with consumer and corporate confidence, we are maintaining our 2025 guidance at the levels we provided to you in February.\u201d\nThe post Equifax: Data for Hiring and Mortgage Refis Drive Stronger-Than-Expected Growth appeared first on PYMNTS.com.", "date_published": "2025-04-22T19:02:11-04:00", "date_modified": "2025-04-22T20:03:09-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/Equifax-earnings.jpg", "tags": [ "consumer lending", "data analysis", "Earnings", "Equifax", "financial services", "Mark Begor", "mortgages", "News", "PYMNTS News", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2689158", "url": "https://www.pymnts.com/earnings/2025/synchrony-ceo-credit-metrics-strong-as-consumers-are-being-disciplined/", "title": "Synchrony CEO: Credit Metrics Strong as Consumers \u2018Are Being Disciplined\u2019", "content_html": "Synchrony Financial\u2019s first-quarter results indicated that consumers are pulling back on spending, particularly for larger ticket items, and have taken steps to pare down their credit card debt. The net result is that consumers are proving to be responsible stewards of their credit even amid an uncertain macro-economic environment.
\nPresentation materials released before the markets opened on Tuesday (April 22) detailed that purchase volumes on the company\u2019s cards slipped 4% to $40.7 billion.
\nCEO and President Brian Doubles said on the conference call with analysts that the purchase volumes trends indicated a \u201ccontinued moderation in customer spend as they navigated the challenges of affordability in their to day lives.\u201d
\nDual and co-branded cards were 45% of purchase volumes, the CEO said, adding that \u201cpurchase volume at the platform level range from between down 1% and down 9% year over year as customers generally remain selective in their discretionary spend and bigger ticket purchases, particularly in categories like furniture, jewelry, outdoor, dental and cosmetics.\u201d
\nThe trends continued into April, according to management commentary on the call, amid the news of government layoffs and tariffs.
\nAt the same time, receivables were down 2%, to $99.6 billion, as payments and paydowns on those cards increased.
\nDoubles told analysts that payments increased sequentially and are \u201cgenerally in line with pre-pandemic seasonality. This sequential increase in payment behavior occurred across all credit grades as the proportion of above minimum payments increased and less than minimum payments decreased \u2026 the spend and payment behaviors we\u2019ve observed, we believe that customers are continuing to manage their spending needs and payment obligations amidst the challenges of a persistent inflationary environment and an uncertain economic backdrop.\u201d
\nExecutive Vice President and CFO Brian Wenzel said on the call that the company\u2019s 30-plus delinquency rate was 4.52%, a decline of 0.22% from 4.74% in the prior year. The net charge-off rate was up slightly, to 6.3%.
\nAs for guidance, \u201cwe continue to expect purchase volume growth to be impacted by our previous credit actions and selective customer spend behavior, and that payment rate will remain generally in line with 2024 levels,\u201d said Synchrony\u2019s CFO, noting that loan receivables should be ahead by the low single-digit percentage points.
\nShares were flat in intraday trading.
\nAsked later on the call about credit trends, Doubles said Synchrony executives felt \u201cpretty constructive around the consumer and the trends that we\u2019re seeing right now. I think our credit team did a fantastic job navigating the last two years. I think the investments that we made in our Prism proprietary underwriting system are certainly paying off. It was great to see us turn the corner on delinquencies … credit is trending better than we expected.\u201d
\nDoubles said, too, that, with the first few weeks of April, \u201cit\u2019s important just to differentiate between all of the uncertainty in the market and the macroeconomic future and what people are predicting and what we\u2019re seeing right now in terms of the health of the consumer. The uncertainty is clearly out there. It\u2019s impacting consumer confidence, but at this point, it\u2019s not impacting what consumers are actually doing. Spend levels are still pretty strong.\u201d
\nAnd, he said, \u201caverage tickets were down a little bit, but frequency was up. And I think what can\u2019t get lost in all this is that that moderation in spending patterns is actually a positive in terms of credit. We actually are encouraged by that pullback because consumers are not overextending, they\u2019re being disciplined. So overall, we\u2019re very pleased with the trends that we\u2019re seeing.\u201d
\nThe post Synchrony CEO: Credit Metrics Strong as Consumers \u2018Are Being Disciplined\u2019 appeared first on PYMNTS.com.
\n", "content_text": "Synchrony Financial\u2019s first-quarter results indicated that consumers are pulling back on spending, particularly for larger ticket items, and have taken steps to pare down their credit card debt. The net result is that consumers are proving to be responsible stewards of their credit even amid an uncertain macro-economic environment.\nPresentation materials released before the markets opened on Tuesday (April 22) detailed that purchase volumes on the company\u2019s cards slipped 4% to $40.7 billion. \nCEO and President Brian Doubles said on the conference call with analysts that the purchase volumes trends indicated a \u201ccontinued moderation in customer spend as they navigated the challenges of affordability in their to day lives.\u201d \nDual and co-branded cards were 45% of purchase volumes, the CEO said, adding that \u201cpurchase volume at the platform level range from between down 1% and down 9% year over year as customers generally remain selective in their discretionary spend and bigger ticket purchases, particularly in categories like furniture, jewelry, outdoor, dental and cosmetics.\u201d \nThe trends continued into April, according to management commentary on the call, amid the news of government layoffs and tariffs.\nManaging Obligations\nAt the same time, receivables were down 2%, to $99.6 billion, as payments and paydowns on those cards increased. \nDoubles told analysts that payments increased sequentially and are \u201cgenerally in line with pre-pandemic seasonality. This sequential increase in payment behavior occurred across all credit grades as the proportion of above minimum payments increased and less than minimum payments decreased \u2026 the spend and payment behaviors we\u2019ve observed, we believe that customers are continuing to manage their spending needs and payment obligations amidst the challenges of a persistent inflationary environment and an uncertain economic backdrop.\u201d\nExecutive Vice President and CFO Brian Wenzel said on the call that the company\u2019s 30-plus delinquency rate was 4.52%, a decline of 0.22% from 4.74% in the prior year. The net charge-off rate was up slightly, to 6.3%. \nAs for guidance, \u201cwe continue to expect purchase volume growth to be impacted by our previous credit actions and selective customer spend behavior, and that payment rate will remain generally in line with 2024 levels,\u201d said Synchrony\u2019s CFO, noting that loan receivables should be ahead by the low single-digit percentage points.\nShares were flat in intraday trading.\nAsked later on the call about credit trends, Doubles said Synchrony executives felt \u201cpretty constructive around the consumer and the trends that we\u2019re seeing right now. I think our credit team did a fantastic job navigating the last two years. I think the investments that we made in our Prism proprietary underwriting system are certainly paying off. It was great to see us turn the corner on delinquencies … credit is trending better than we expected.\u201d\nDoubles said, too, that, with the first few weeks of April, \u201cit\u2019s important just to differentiate between all of the uncertainty in the market and the macroeconomic future and what people are predicting and what we\u2019re seeing right now in terms of the health of the consumer. The uncertainty is clearly out there. It\u2019s impacting consumer confidence, but at this point, it\u2019s not impacting what consumers are actually doing. Spend levels are still pretty strong.\u201d\nAnd, he said, \u201caverage tickets were down a little bit, but frequency was up. And I think what can\u2019t get lost in all this is that that moderation in spending patterns is actually a positive in terms of credit. We actually are encouraged by that pullback because consumers are not overextending, they\u2019re being disciplined. So overall, we\u2019re very pleased with the trends that we\u2019re seeing.\u201d\nThe post Synchrony CEO: Credit Metrics Strong as Consumers \u2018Are Being Disciplined\u2019 appeared first on PYMNTS.com.", "date_published": "2025-04-22T12:16:48-04:00", "date_modified": "2025-04-23T14:03:13-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2022/04/Synchrony-earnings-consumer-spending.jpg", "tags": [ "consumer finances", "Consumer Spending", "credit", "credit cards", "Earnings", "loans", "News", "PYMNTS News", "Synchrony Financial" ] }, { "id": "https://www.pymnts.com/?p=2688430", "url": "https://www.pymnts.com/earnings/2025/corporate-lending-and-spending-in-wait-and-see-mode-but-credit-quality-strong/", "title": "Corporate Lending and Spending in \u2018Wait and See\u2019 Mode Amid Tariff Uncertainty", "content_html": "Through the past few weeks, bank earnings and American Express\u2019 latest results point to a commercial lending environment where demand is muted in real estate, stronger in other sectors \u2014 and marked by strong credit quality.
\nAnd though the snapshot of the quarter showed pockets of demand for the capital to keep operations humming, and even expanding, at least some of the activity was focused on getting \u201cahead\u201d of tariffs, sourcing supply and inventory, and right now many of those firms are in a \u201cwait and see\u201d mode while tariffs play out on the wider world stage.
\nAmerican Express indicated last week that, in the words of CFO Christophe Le Caillec, \u201cSME spending at wholesale merchants saw a modest acceleration in growth over the quarter, possibly reflecting higher purchases in advance of potential price increases. International card services spend was up 14%. This strong growth was seen across geographies with each of our top five markets growing by double digits.\u201d
\nThe earnings presentation materials indicated that overall spending on the firm\u2019s commercial cards was up 2%, down from the 4% gains in the fourth quarter. Overall small and medium-size enterprise (SME) spending was 2% higher in the first quarter, and as SMEs are 81% of the firm\u2019s commercial services, as \u201cmain street\u201d firms go, so goes Amex\u2019s corporate unit. Corporate net write-offs were steady at 0.5%
\nIn Citi\u2019s filings, the company noted that its commercial card spending volumes were up 2% year over year to $17 billion, and that loans in its treasury and trade solutions business gained 6% to $85 billion. Corporate loans at the end of the March period stood at $316 billion, up from $301 billion at the end of last year. NCLs were basically flat, and deposits were up by 1% to $841 billion.
\nCFO Mark Mason said that \u201cthe loan growth \u2026 [was] in average interest-earning balances on the Branded Cards side, but also saw trade loan growth as well. And so those are going to be important tailwinds as I think about the balance of the quarter.\u201d CEO Jane Fraser said that \u201cwe are positioned to be the go-to bank for commercial clients. So, these are ones with cross-border needs. We\u2019ve got these unique capabilities that, particularly the born-digital clients who are then going global very quickly, they can just sit on top of our existing capabilities in Services.\u201d
\nIn JPMorgan\u2019s latest results, business banking average loans were flat to $19.5 billion in the latest quarter. Origination activity slowed, to $800 million in the latest quarter, down from $1 billion in the fourth quarter of last year.
\nAnd in tandem with reduced activity, commercial banking revenues were $2.8 billion in the latest quarter, down slightly from a year ago, tied to commercial real estate. Middle market banking revenues were just under $2 billion, down very slightly from the fourth quarter and up $29 million from a year ago. Credit quality remained strong, as net charge-offs in the latest quarter, at 0.15%, were better than the 0.25% seen in the fourth quarter of last year.
\nBut a net reserve build of $528 million served as a nod to the fact that the economic environment is volatile.
\nCFO Jeremy Barnum said on the conference call with analysts that \u201cin terms of our corporate clients, obviously, they\u2019ve been reacting to the changes in tariff policy. And at the margin that shifts their focus away from more strategic priorities with obvious implications for the Investment Banking pipeline outlook towards more short-term work, optimizing supply chains and trying to figure out how they\u2019re going to respond to the current environment. So, as a result, I think we would characterize what we\u2019re hearing from our corporate clients is a little bit of a wait-and-see attitude. I do think you see obvious differences across sectors.
\n\u201cSome sectors are going to be much more exposed than others and have more complicated problems to solve, and also across the size of the clients, I think, smaller clients, small business and smaller corporates are probably a little bit more challenged. I think the larger corporates have a bit more experience dealing with these things and more resources to manage,\u201d he said. \u201cSo, that\u2019s a little bit of our read of the situation right now, but certainly a bit of a wait-and-see attitude. It\u2019s hard to make long-term decisions right now.\u201d
\nIn Bank of America\u2019s corporate book, U.S. commercial loans grew in the March quarter, to $412 billion, up from $405 billion in the fourth quarter of last year and ahead of the $380 billion seen a year ago. Commercial net charge-offs of $333 million decreased $26 million. The net charge-off ratio of 0.54% was flat from the end of the year.
\nCEO Brian Moynihan said during the call that \u201cwe\u2019re the largest small business lender in the United States. By quite a bit. And those loans are growing.\u201d
\nWells Fargo CFO Mike Santomassimo indicated to analysts that \u201cin the commercial bank, it was mostly a utilization story. There may have been a few new customers as well where we saw kind of a slight uptick there in utilization, mostly in kind of the bigger client segment, so the mid-corporate segment, not the smaller clients in the commercial bank. We also saw some upticks in our asset-based lending portfolio as well \u2026 we haven\u2019t really seen any evidence of people prepositioning significantly that caused significant borrowing at least as it relates to their expectations around tariffs.\u201d
\n\u00a0Both average and period-end loans grew slightly from the fourth quarter, driven by growth in commercial and industrial loans. The company\u2019s latest filings detailed that commercial loans were $533.2 billion, up from $528.3 billion in the final quarter of 2025.
\nThe post Corporate Lending and Spending in \u2018Wait and See\u2019 Mode Amid Tariff Uncertainty appeared first on PYMNTS.com.
\n", "content_text": "Through the past few weeks, bank earnings and American Express\u2019 latest results point to a commercial lending environment where demand is muted in real estate, stronger in other sectors \u2014 and marked by strong credit quality.\nAnd though the snapshot of the quarter showed pockets of demand for the capital to keep operations humming, and even expanding, at least some of the activity was focused on getting \u201cahead\u201d of tariffs, sourcing supply and inventory, and right now many of those firms are in a \u201cwait and see\u201d mode while tariffs play out on the wider world stage.\nGetting Ahead of Tariffs, and Using Corporate Cards to Do So\nAmerican Express indicated last week that, in the words of CFO Christophe Le Caillec, \u201cSME spending at wholesale merchants saw a modest acceleration in growth over the quarter, possibly reflecting higher purchases in advance of potential price increases. International card services spend was up 14%. This strong growth was seen across geographies with each of our top five markets growing by double digits.\u201d\nThe earnings presentation materials indicated that overall spending on the firm\u2019s commercial cards was up 2%, down from the 4% gains in the fourth quarter. Overall small and medium-size enterprise (SME) spending was 2% higher in the first quarter, and as SMEs are 81% of the firm\u2019s commercial services, as \u201cmain street\u201d firms go, so goes Amex\u2019s corporate unit. Corporate net write-offs were steady at 0.5%\nHealthy Spending on Cards \nIn Citi\u2019s filings, the company noted that its commercial card spending volumes were up 2% year over year to $17 billion, and that loans in its treasury and trade solutions business gained 6% to $85 billion. Corporate loans at the end of the March period stood at $316 billion, up from $301 billion at the end of last year. NCLs were basically flat, and deposits were up by 1% to $841 billion.\nCFO Mark Mason said that \u201cthe loan growth \u2026 [was] in average interest-earning balances on the Branded Cards side, but also saw trade loan growth as well. And so those are going to be important tailwinds as I think about the balance of the quarter.\u201d CEO Jane Fraser said that \u201cwe are positioned to be the go-to bank for commercial clients. So, these are ones with cross-border needs. We\u2019ve got these unique capabilities that, particularly the born-digital clients who are then going global very quickly, they can just sit on top of our existing capabilities in Services.\u201d\nIn JPMorgan\u2019s latest results, business banking average loans were flat to $19.5 billion in the latest quarter. Origination activity slowed, to $800 million in the latest quarter, down from $1 billion in the fourth quarter of last year.\nAnd in tandem with reduced activity, commercial banking revenues were $2.8 billion in the latest quarter, down slightly from a year ago, tied to commercial real estate. Middle market banking revenues were just under $2 billion, down very slightly from the fourth quarter and up $29 million from a year ago. Credit quality remained strong, as net charge-offs in the latest quarter, at 0.15%, were better than the 0.25% seen in the fourth quarter of last year.\nBut a net reserve build of $528 million served as a nod to the fact that the economic environment is volatile.\nCFO Jeremy Barnum said on the conference call with analysts that \u201cin terms of our corporate clients, obviously, they\u2019ve been reacting to the changes in tariff policy. And at the margin that shifts their focus away from more strategic priorities with obvious implications for the Investment Banking pipeline outlook towards more short-term work, optimizing supply chains and trying to figure out how they\u2019re going to respond to the current environment. So, as a result, I think we would characterize what we\u2019re hearing from our corporate clients is a little bit of a wait-and-see attitude. I do think you see obvious differences across sectors.\n\u201cSome sectors are going to be much more exposed than others and have more complicated problems to solve, and also across the size of the clients, I think, smaller clients, small business and smaller corporates are probably a little bit more challenged. I think the larger corporates have a bit more experience dealing with these things and more resources to manage,\u201d he said. \u201cSo, that\u2019s a little bit of our read of the situation right now, but certainly a bit of a wait-and-see attitude. It\u2019s hard to make long-term decisions right now.\u201d\nIn Bank of America\u2019s corporate book, U.S. commercial loans grew in the March quarter, to $412 billion, up from $405 billion in the fourth quarter of last year and ahead of the $380 billion seen a year ago. Commercial net charge-offs of $333 million decreased $26 million. The net charge-off ratio of 0.54% was flat from the end of the year.\nCEO Brian Moynihan said during the call that \u201cwe\u2019re the largest small business lender in the United States. By quite a bit. And those loans are growing.\u201d\nWells Fargo CFO Mike Santomassimo indicated to analysts that \u201cin the commercial bank, it was mostly a utilization story. There may have been a few new customers as well where we saw kind of a slight uptick there in utilization, mostly in kind of the bigger client segment, so the mid-corporate segment, not the smaller clients in the commercial bank. We also saw some upticks in our asset-based lending portfolio as well \u2026 we haven\u2019t really seen any evidence of people prepositioning significantly that caused significant borrowing at least as it relates to their expectations around tariffs.\u201d\n\u00a0Both average and period-end loans grew slightly from the fourth quarter, driven by growth in commercial and industrial loans. The company\u2019s latest filings detailed that commercial loans were $533.2 billion, up from $528.3 billion in the final quarter of 2025.\nThe post Corporate Lending and Spending in \u2018Wait and See\u2019 Mode Amid Tariff Uncertainty appeared first on PYMNTS.com.", "date_published": "2025-04-21T12:19:19-04:00", "date_modified": "2025-04-22T23:00:38-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/corporate-lending-spending-credit.png", "tags": [ "American Express", "B2B", "B2B Payments", "Bank of America", "banking", "Banks", "Citi", "commercial payments", "credit", "credit cards", "Earnings", "Featured News", "JPMorgan Chase", "Lending", "loans", "News", "PYMNTS News", "wells fargo", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2687476", "url": "https://www.pymnts.com/earnings/2025/earnings-see-businesses-embrace-working-capital-flexibility-growth-pauses/", "title": "Earnings See Businesses Embrace Working Capital Flexibility as Growth Pauses", "content_html": "U.S. reciprocal tariffs have upended global trade.
\nOnce fluid supply chains are now tangled with complexity, and the ripple effects are being felt across every corner of the business world, from procurement and logistics to pricing, profitability and working capital.
\nAs a result, the most recent earnings commentaries and industry analyses point to companies being forced to rethink how they manage their finances, with particular emphasis on working capital. Amid heightened uncertainty, many are shifting from just-in-time inventory strategies to more resilient, cash-preserving approaches, aiming to weather prolonged periods of market turbulence.
\nBusinesses that proactively manage their working capital could stand to gain a competitive advantage in today\u2019s shifting environment. Earnings results reveal that flexibility and liquidity are now the name of the game.
\nRead also: How Payments Innovation Underpins All-Weather Businesses and Resilient Supply Chains
\nThe prevailing attitude among lenders was that while the macroeconomic picture remains cloudy, businesses are taking a wait-and-see approach to investments, meaning that flexibility of working capital solutions remains key.
\nKeyBank said Thursday (April 17) that average commercial loans were up 0.4% quarter over quarter in the period ended March 31, to $72.4 billion.
\n\u201cIf [businesses] have a capex project that\u2019s in flight, full speed ahead,\u201d CEO Chris Gorman said. \u201cThe last 90 days haven\u2019t changed a thing because those are planned and committed long before they start.\u201d
\n\u201cIn terms of new projects being launched, until there\u2019s more clarity, I think obviously the current environment hinders that,\u201d he added.
\nFifth Third Bancorp Chairman, CEO and President Tim Spence said Thursday that he traveled to meet with around 50 business owners in the five regions served by the bank in sectors like materials, manufacturing, transportation, logistics, energy, automotive and healthcare to get their views on tariff announcements.
\n\u201cWhat was maybe a little bit interesting to me is that the folks that have domestic supply chains were also saying they have to move prices in the U.S. because they\u2019re expecting that if the tariffs hold, they\u2019re going to experience volume losses in foreign markets, and \u2026 they require a certain amount of gross margin dollars just to be able to cover overheads and run their businesses,\u201d Spence said.
\nOn the commercial side of Bank of America\u2019s business, commercial loans were flat from the end of the year at $196 billion.
\nCEO Brian Moynihan said Tuesday (April 15) that businesses are \u201cbasically sanguine on the current environment, but they\u2019re worried about how [tariffs] will affect their businesses and where they should invest. And I think that\u2019s slowing down some of their decision paths right now because they\u2019re trying to figure out, \u2018For my goods and services, will I be able to pass through the price? Do I need [to] change my business plans in terms of growth? Should I buy that piece of equipment?\u2019 That\u2019s why line usage has been relatively muted still, and we continue to try to grow it.\u201d
\nPNC gained customers and commercial loans in the first quarter, expanding its net interest margin and capital levels and maintaining credit quality metrics, CEO William Demchak said Tuesday.
\nCommercial and industrial (C&I) loan commitments increased by $4.7 billion, consumer loans declined by $1 billion and commercial real estate (CRE) loans decreased by $1.3 billion. Spot utilization in the commercial and industrial banking (C&IB) business increased by about 80 basis points during the quarter.
\nFor Wells Fargo, the commercial loan book showed modest growth for the first time since early 2023, indicating renewed demand despite economic uncertainty. Treasury management and tax credit investments also contributed positively, reflecting innovation in corporate financial solutions.
\nAmerican Express Chairman and CEO Stephen Squeri acknowledged Thursday that if the economy takes a severe turn, small businesses might feel the pinch first, but he said the company would not abandon its forward-looking strategy. His view is supported by data in the PYMNTS Intelligence report \u201cBrewing Storm: Why 1 in 5 Smaller Businesses Without Financing Fear They May Not Survive Tariffs.\u201d
\nThe common message from first-quarter 2025 earnings was to keep liquidity abundant, credit underwriting tight, and technology spending pointed at areas that either cut cost (digital onboarding) or expand fee income (real-time payments, commercial cards). If the tariff picture brightens, banks are positioned to accelerate; if it darkens, they have the reserves and operating leverage to endure.
\n\u201cWe need high-growth businesses to survive and thrive [in this uncertain economy],\u201d Lucy Demery, senior vice president, head of Visa Commercial Solutions, Europe, told PYMNTS in February, noting that embedded options are proving to be a \u201chuge unlock for supply chain payments.\u201d
\nWorking capital innovations are helping businesses plan for the future while simultaneously navigating today\u2019s complexities. In sectors like manufacturing and retail, where delays can cascade into million-dollar losses, the speed and reliability of payments can mean the difference between resilience and ruin.
\nThe post Earnings See Businesses Embrace Working Capital Flexibility as Growth Pauses appeared first on PYMNTS.com.
\n", "content_text": "U.S. reciprocal tariffs have upended global trade.\nOnce fluid supply chains are now tangled with complexity, and the ripple effects are being felt across every corner of the business world, from procurement and logistics to pricing, profitability and working capital.\nAs a result, the most recent earnings commentaries and industry analyses point to companies being forced to rethink how they manage their finances, with particular emphasis on working capital. Amid heightened uncertainty, many are shifting from just-in-time inventory strategies to more resilient, cash-preserving approaches, aiming to weather prolonged periods of market turbulence.\nBusinesses that proactively manage their working capital could stand to gain a competitive advantage in today\u2019s shifting environment. Earnings results reveal that flexibility and liquidity are now the name of the game.\nRead also: How Payments Innovation Underpins All-Weather Businesses and Resilient Supply Chains\nBanks Say Businesses Are Embracing Wait-and-See Approach Amidst Uncertainty\nThe prevailing attitude among lenders was that while the macroeconomic picture remains cloudy, businesses are taking a wait-and-see approach to investments, meaning that flexibility of working capital solutions remains key.\nKeyBank said Thursday (April 17) that average commercial loans were up 0.4% quarter over quarter in the period ended March 31, to $72.4 billion.\n\u201cIf [businesses] have a capex project that\u2019s in flight, full speed ahead,\u201d CEO Chris Gorman said. \u201cThe last 90 days haven\u2019t changed a thing because those are planned and committed long before they start.\u201d\n\u201cIn terms of new projects being launched, until there\u2019s more clarity, I think obviously the current environment hinders that,\u201d he added.\nFifth Third Bancorp Chairman, CEO and President Tim Spence said Thursday that he traveled to meet with around 50 business owners in the five regions served by the bank in sectors like materials, manufacturing, transportation, logistics, energy, automotive and healthcare to get their views on tariff announcements.\n\u201cWhat was maybe a little bit interesting to me is that the folks that have domestic supply chains were also saying they have to move prices in the U.S. because they\u2019re expecting that if the tariffs hold, they\u2019re going to experience volume losses in foreign markets, and \u2026 they require a certain amount of gross margin dollars just to be able to cover overheads and run their businesses,\u201d Spence said.\nOn the commercial side of Bank of America\u2019s business, commercial loans were flat from the end of the year at $196 billion.\nCEO Brian Moynihan said Tuesday (April 15) that businesses are \u201cbasically sanguine on the current environment, but they\u2019re worried about how [tariffs] will affect their businesses and where they should invest. And I think that\u2019s slowing down some of their decision paths right now because they\u2019re trying to figure out, \u2018For my goods and services, will I be able to pass through the price? Do I need [to] change my business plans in terms of growth? Should I buy that piece of equipment?\u2019 That\u2019s why line usage has been relatively muted still, and we continue to try to grow it.\u201d\nStrategic Use of Working Capital for Growth\nPNC gained customers and commercial loans in the first quarter, expanding its net interest margin and capital levels and maintaining credit quality metrics, CEO William Demchak said Tuesday.\nCommercial and industrial (C&I) loan commitments increased by $4.7 billion, consumer loans declined by $1 billion and commercial real estate (CRE) loans decreased by $1.3 billion. Spot utilization in the commercial and industrial banking (C&IB) business increased by about 80 basis points during the quarter.\nFor Wells Fargo, the commercial loan book showed modest growth for the first time since early 2023, indicating renewed demand despite economic uncertainty. Treasury management and tax credit investments also contributed positively, reflecting innovation in corporate financial solutions.\nAmerican Express Chairman and CEO Stephen Squeri acknowledged Thursday that if the economy takes a severe turn, small businesses might feel the pinch first, but he said the company would not abandon its forward-looking strategy. His view is supported by data in the PYMNTS Intelligence report \u201cBrewing Storm: Why 1 in 5 Smaller Businesses Without Financing Fear They May Not Survive Tariffs.\u201d\nThe common message from first-quarter 2025 earnings was to keep liquidity abundant, credit underwriting tight, and technology spending pointed at areas that either cut cost (digital onboarding) or expand fee income (real-time payments, commercial cards). If the tariff picture brightens, banks are positioned to accelerate; if it darkens, they have the reserves and operating leverage to endure.\n\u201cWe need high-growth businesses to survive and thrive [in this uncertain economy],\u201d Lucy Demery, senior vice president, head of Visa Commercial Solutions, Europe, told PYMNTS in February, noting that embedded options are proving to be a \u201chuge unlock for supply chain payments.\u201d\nWorking capital innovations are helping businesses plan for the future while simultaneously navigating today\u2019s complexities. In sectors like manufacturing and retail, where delays can cascade into million-dollar losses, the speed and reliability of payments can mean the difference between resilience and ruin.\nThe post Earnings See Businesses Embrace Working Capital Flexibility as Growth Pauses appeared first on PYMNTS.com.", "date_published": "2025-04-18T11:25:49-04:00", "date_modified": "2025-04-18T14:13:31-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/07/working-capital-solutions.png", "tags": [ "American Express", "B2B", "B2B Payments", "Bank of America", "Banks", "Business", "commercial payments", "credit", "Earnings", "economy", "Fifth Third Bank", "KeyBank", "loans", "News", "PNC", "PYMNTS News", "SMBs", "tariffs", "taxes", "wells fargo", "working capital" ] }, { "id": "https://www.pymnts.com/?p=2687090", "url": "https://www.pymnts.com/earnings/2025/unitedhealth-medicare-issues-fueled-unusual-unacceptable-earnings/", "title": "UnitedHealth: Medicare Issues Fueled \u2018Unusual and Unacceptable\u2019 Earnings", "content_html": "UnitedHealth Group is downgrading its 2025 revenue forecast because of issues with its Medicare business.
\nSpeaking during a conference call Thursday (April 17) discussing first-quarter earnings, CEO Andrew Witty said the company began the year in two different ways. The first way was to provide more healthcare benefits and services to more members and patients.
\n\u201cThe other way, however, was an overall performance that was frankly unusual and unacceptable,\u201d Witty said on the call.
\nThe company said in a Thursday press release that its new outlook is net earnings of $24.65 to $25.15 per share and adjusted earnings of $26 to $26.50 per share.
\nIt\u2019s driven in part by \u201cheightened care activity indications within [its] Medicare Advantage businesses, which became visible as the quarter closed, far above the planned 2025 increase, which was consistent with the elevated levels in 2024,\u201d the release said. \u201cThis activity was most notable within physician and outpatient services.\u201d
\nIn addition, Witty told investors that the company added more new Medicare patients to its Optum Health program, some of whom were covered by plans that were exiting markets.
\n\u201cThey experienced a surprising lack of engagement last year, which led to 2025 reimbursement levels well below what we would expect and likely not reflective of their actual health status,\u201d Witty said during the call. \u201cAdditionally, many of the current and new complex patients we serve are more affected by the CMS risk model changes that we are in the process of implementing. To be sure, it is complicated, but we\u2019re not executing on the model transition as well as we should. We must and will work to better anticipate and address these factors.\u201d
\nThe earnings came one day after a report in which the company said it was trying to improve communications with customers and make its system easier to navigate following the shooting death of former UnitedHealth CEO Brian Thompson. The killing turned accused shooter Luigi Mangione into a sort of folk hero among Americans fed up with the health insurance system in the United States.
\nTim Noel, who took over the insurance unit when Thompson died, said per a Bloomberg report that management is \u201cacknowledging that there are challenges, there are problems.\u201d
\n\u201cWe are fixing them,\u201d he added.
\nCompany officials said they are speeding up decisions on requests for care, otherwise known as prior authorizations; reducing the number of medical services subject to those hurdles; and enhancing communications with customers when a request or claim is denied.
\nThe post UnitedHealth: Medicare Issues Fueled \u2018Unusual and Unacceptable\u2019 Earnings appeared first on PYMNTS.com.
\n", "content_text": "UnitedHealth Group is downgrading its 2025 revenue forecast because of issues with its Medicare business.\nSpeaking during a conference call Thursday (April 17) discussing first-quarter earnings, CEO Andrew Witty said the company began the year in two different ways. The first way was to provide more healthcare benefits and services to more members and patients.\n\u201cThe other way, however, was an overall performance that was frankly unusual and unacceptable,\u201d Witty said on the call.\nThe company said in a Thursday press release that its new outlook is net earnings of $24.65 to $25.15 per share and adjusted earnings of $26 to $26.50 per share.\nIt\u2019s driven in part by \u201cheightened care activity indications within [its] Medicare Advantage businesses, which became visible as the quarter closed, far above the planned 2025 increase, which was consistent with the elevated levels in 2024,\u201d the release said. \u201cThis activity was most notable within physician and outpatient services.\u201d\nIn addition, Witty told investors that the company added more new Medicare patients to its Optum Health program, some of whom were covered by plans that were exiting markets.\n\u201cThey experienced a surprising lack of engagement last year, which led to 2025 reimbursement levels well below what we would expect and likely not reflective of their actual health status,\u201d Witty said during the call. \u201cAdditionally, many of the current and new complex patients we serve are more affected by the CMS risk model changes that we are in the process of implementing. To be sure, it is complicated, but we\u2019re not executing on the model transition as well as we should. We must and will work to better anticipate and address these factors.\u201d\nThe earnings came one day after a report in which the company said it was trying to improve communications with customers and make its system easier to navigate following the shooting death of former UnitedHealth CEO Brian Thompson. The killing turned accused shooter Luigi Mangione into a sort of folk hero among Americans fed up with the health insurance system in the United States.\nTim Noel, who took over the insurance unit when Thompson died, said per a Bloomberg report that management is \u201cacknowledging that there are challenges, there are problems.\u201d\n\u201cWe are fixing them,\u201d he added.\nCompany officials said they are speeding up decisions on requests for care, otherwise known as prior authorizations; reducing the number of medical services subject to those hurdles; and enhancing communications with customers when a request or claim is denied.\nThe post UnitedHealth: Medicare Issues Fueled \u2018Unusual and Unacceptable\u2019 Earnings appeared first on PYMNTS.com.", "date_published": "2025-04-17T17:58:05-04:00", "date_modified": "2025-04-17T17:58:05-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2021/04/unitedhealthcare.jpg", "tags": [ "Earnings", "Healthcare", "Insurance", "News", "PYMNTS News", "Revenue", "UnitedHealth Group", "unitedhealthcare", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2686845", "url": "https://www.pymnts.com/earnings/2025/amex-projects-resilient-consumer-demand-anchored-by-gen-z-and-millennial-growth/", "title": "Amex Projects Resilient Consumer Demand, Anchored by Gen Z and Millennial Growth", "content_html": "If the general attitude of global business is based on economic uncertainty, American Express (Amex) never got that email.
\nThe company is greeting the balance of 2025 with optimism, even as many of its peers and the broader business community gird themselves for economic turbulence. While much of Wall Street frets over fluctuating consumer confidence and the specter of rising unemployment, American Express executives see enough stability in spending, particularly among its affluent and younger customer segments, to hold firm on healthy revenue and earnings targets.
\nAmex Chairman and CEO Stephen Squeri underscored the company\u2019s confidence by reiterating full-year guidance of 8% to 10% revenue growth and earnings per share between $15 and $15.50. He acknowledged the continuing uncertainty in global markets but emphasized that American Express\u2019 projections already factor in a potential peak weighted average unemployment rate of around 5.7%. That figure, he noted, gives the company enough leeway to weather potential macroeconomic headwinds.
\nCFO Christophe Le Caillec said that Amex\u2019s core strengths, particularly its fee-based model and premium customer base, have remained robust through the year\u2019s first quarter.
\nWhile Q1 was the subject of pessimistic projections from analysts, earnings season has so far shown surprising stability. A point of keen interest for analysts has been the notion of a consumer \u201cpull forward,\u201d wherein some fear that travel and big-ticket purchases made in late 2024 or early 2025 could artificially inflate first-quarter numbers.
\nSqueri was unequivocal in allaying these concerns.
\n\u201cWe really haven\u2019t seen any pull forward at all,\u201d he told investors in an earnings call. \u201cFrom a consumer perspective, we\u2019ve seen no pull forward at all.\u201d Squeri pointed out that spending in January, February and March, as well as the first half of April, has been consistent, with only minor fluctuations from month to month.
\nHe also noted that high-income earners are continuing to spend on travel, a key category for Amex.
\n\u201cWe had the highest number of travel bookings that we\u2019ve ever had,\u201d he said, attributing this in part to pent-up demand but also to a broader trend of consumers prioritizing experiences and leisure. Even small business clients, who have reported incremental increases in wholesale and other expenditures, have not shown the kind of one-time burst analysts might associate with a \u201cpull forward\u201d phenomenon.
\nAmex has long viewed Generation Z and millennials as critical growth drivers. Squeri reiterated that belief, citing both higher average FICO scores and lower delinquency rates compared to broader industry benchmarks.
\n\u201cOur millennial and Gen Zs are performing significantly better both from a FICO perspective and from a delinquency perspective than the industry,\u201d he said. Though this younger cohort typically spends about 20% less overall than older generations, its spending is growing at a swift clip, particularly in international markets, where executives reported a 22% year-over-year jump.
\nThe company also noted that younger consumers tend to revolve balances less often, but that trend does not appear to be dampening revenue.
\nSee also: 85% Of Gen Z Prefers Digital Payments to Cash
\nInstead, Squeri and Le Caillec said, it points to a financially disciplined new generation of cardholders who use American Express cards for convenience, perks and points instead of as a fallback for everyday liquidity. Squeri suggested that this group\u2019s robust spending patterns, despite headlines about student loan repayment and rising living costs, reflect American Express\u2019 ability to attract upwardly mobile young professionals.
\nBeyond generational breakdowns, Squeri stressed that American Express\u2019 overarching customer base skews toward higher-income, more resilient cardholders.
\n\u201cIf you look at our card base now versus our card base in 2019, it is more premium than it was at that point with higher FICOs,\u201d he said.
\nThis premium positioning helps insulate the company, according to Squeri, against broad fluctuations in consumer confidence. Le Caillec reinforced that the company\u2019s fee-driven model further buffers it from swings in consumer sentiment. Over the past few years, a significant portion of new accounts (around 70% this quarter) has been on fee-paying products.
\nMeanwhile, American Express has successfully refreshed numerous card offerings, allowing the firm to raise annual fees only when it correspondingly enhances card benefits. In Squeri\u2019s words: \u201cWe don\u2019t raise fees indiscriminately. You raise fees when you add value.\u201d
\nDespite threats of recession, Squeri said that the company remains committed to long-term investment in technology, small-business solutions and new product refreshes. Squeri acknowledged that if the economy takes a severe turn, small businesses might feel the pinch first, but he stressed that the company would not abandon its forward-looking strategy.
\n\u201cI\u2019m not going to pass up good opportunities to invest for the future just to hit a number,\u201d he said, reflecting a willingness to absorb short-term volatility in service of building a more durable business.
\nBy the numbers, on an FX-adjusted basis, revenue rose 8% year over year \u2014 or 9% when factoring out the leap year impact \u2014 to $17 billion. Total Card Member spending also grew at a steady clip, up 6% (7% excluding the extra day), outpacing results across pivotal metrics such as customer retention, demand for premium products and credit performance. These figures not only match but, in many respects, surpass the levels seen in 2024.
\nGiven the stable spending and credit trends, and in light of current economic conditions, American Express is standing by its full-year forecast for 8% to 10% revenue growth and earnings per share between $15 and $15.50, the ranges first set in January.
\nWhile those targets may be influenced by broader macroeconomic developments, the company said it remains focused on driving long-term growth by supporting its customers and colleagues, exercising disciplined expense management and selectively investing in its business.
\nThe post Amex Projects Resilient Consumer Demand, Anchored by Gen Z and Millennial Growth appeared first on PYMNTS.com.
\n", "content_text": "If the general attitude of global business is based on economic uncertainty, American Express (Amex) never got that email.\nThe company is greeting the balance of 2025 with optimism, even as many of its peers and the broader business community gird themselves for economic turbulence. While much of Wall Street frets over fluctuating consumer confidence and the specter of rising unemployment, American Express executives see enough stability in spending, particularly among its affluent and younger customer segments, to hold firm on healthy revenue and earnings targets.\nAmex Chairman and CEO Stephen Squeri underscored the company\u2019s confidence by reiterating full-year guidance of 8% to 10% revenue growth and earnings per share between $15 and $15.50. He acknowledged the continuing uncertainty in global markets but emphasized that American Express\u2019 projections already factor in a potential peak weighted average unemployment rate of around 5.7%. That figure, he noted, gives the company enough leeway to weather potential macroeconomic headwinds.\nCFO Christophe Le Caillec said that Amex\u2019s core strengths, particularly its fee-based model and premium customer base, have remained robust through the year\u2019s first quarter.\nWhile Q1 was the subject of pessimistic projections from analysts, earnings season has so far shown surprising stability. A point of keen interest for analysts has been the notion of a consumer \u201cpull forward,\u201d wherein some fear that travel and big-ticket purchases made in late 2024 or early 2025 could artificially inflate first-quarter numbers.\nSqueri was unequivocal in allaying these concerns.\n\u201cWe really haven\u2019t seen any pull forward at all,\u201d he told investors in an earnings call. \u201cFrom a consumer perspective, we\u2019ve seen no pull forward at all.\u201d Squeri pointed out that spending in January, February and March, as well as the first half of April, has been consistent, with only minor fluctuations from month to month.\nHe also noted that high-income earners are continuing to spend on travel, a key category for Amex.\n\u201cWe had the highest number of travel bookings that we\u2019ve ever had,\u201d he said, attributing this in part to pent-up demand but also to a broader trend of consumers prioritizing experiences and leisure. Even small business clients, who have reported incremental increases in wholesale and other expenditures, have not shown the kind of one-time burst analysts might associate with a \u201cpull forward\u201d phenomenon.\nGen Z and Millennial Spending Resilience\nAmex has long viewed Generation Z and millennials as critical growth drivers. Squeri reiterated that belief, citing both higher average FICO scores and lower delinquency rates compared to broader industry benchmarks.\n\u201cOur millennial and Gen Zs are performing significantly better both from a FICO perspective and from a delinquency perspective than the industry,\u201d he said. Though this younger cohort typically spends about 20% less overall than older generations, its spending is growing at a swift clip, particularly in international markets, where executives reported a 22% year-over-year jump.\nThe company also noted that younger consumers tend to revolve balances less often, but that trend does not appear to be dampening revenue.\nSee also: 85% Of Gen Z Prefers Digital Payments to Cash\nInstead, Squeri and Le Caillec said, it points to a financially disciplined new generation of cardholders who use American Express cards for convenience, perks and points instead of as a fallback for everyday liquidity. Squeri suggested that this group\u2019s robust spending patterns, despite headlines about student loan repayment and rising living costs, reflect American Express\u2019 ability to attract upwardly mobile young professionals.\nBeyond generational breakdowns, Squeri stressed that American Express\u2019 overarching customer base skews toward higher-income, more resilient cardholders.\n\u201cIf you look at our card base now versus our card base in 2019, it is more premium than it was at that point with higher FICOs,\u201d he said.\nThis premium positioning helps insulate the company, according to Squeri, against broad fluctuations in consumer confidence. Le Caillec reinforced that the company\u2019s fee-driven model further buffers it from swings in consumer sentiment. Over the past few years, a significant portion of new accounts (around 70% this quarter) has been on fee-paying products.\nMeanwhile, American Express has successfully refreshed numerous card offerings, allowing the firm to raise annual fees only when it correspondingly enhances card benefits. In Squeri\u2019s words: \u201cWe don\u2019t raise fees indiscriminately. You raise fees when you add value.\u201d\nLong-Term Focus\nDespite threats of recession, Squeri said that the company remains committed to long-term investment in technology, small-business solutions and new product refreshes. Squeri acknowledged that if the economy takes a severe turn, small businesses might feel the pinch first, but he stressed that the company would not abandon its forward-looking strategy.\n\u201cI\u2019m not going to pass up good opportunities to invest for the future just to hit a number,\u201d he said, reflecting a willingness to absorb short-term volatility in service of building a more durable business.\nBy the numbers, on an FX-adjusted basis, revenue rose 8% year over year \u2014 or 9% when factoring out the leap year impact \u2014 to $17 billion. Total Card Member spending also grew at a steady clip, up 6% (7% excluding the extra day), outpacing results across pivotal metrics such as customer retention, demand for premium products and credit performance. These figures not only match but, in many respects, surpass the levels seen in 2024.\nGiven the stable spending and credit trends, and in light of current economic conditions, American Express is standing by its full-year forecast for 8% to 10% revenue growth and earnings per share between $15 and $15.50, the ranges first set in January.\nWhile those targets may be influenced by broader macroeconomic developments, the company said it remains focused on driving long-term growth by supporting its customers and colleagues, exercising disciplined expense management and selectively investing in its business.\nThe post Amex Projects Resilient Consumer Demand, Anchored by Gen Z and Millennial Growth appeared first on PYMNTS.com.", "date_published": "2025-04-17T13:24:09-04:00", "date_modified": "2025-04-17T13:24:09-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2023/09/american-express-2.jpg", "tags": [ "American Express", "Amex", "banking", "Consumer Spending", "Digital Banking", "digital first banking", "Earnings", "economy", "Gen Z", "Generation Z", "Millennials", "News", "PYMNTS News", "travel" ] }, { "id": "https://www.pymnts.com/?p=2686869", "url": "https://www.pymnts.com/earnings/2025/fifth-third-bancorp-diversification-aids-resilience-amid-tariff-driven-uncertainty/", "title": "Fifth Third Bancorp: Diversification Aids Resilience Amid Tariff-Driven Uncertainty", "content_html": "Fifth Third Bancorp executives highlighted their proactive management and the bank\u2019s ability to navigate uncertain environments during a conference call Thursday (April 17) discussing first-quarter earnings.
\nThey said these qualities are especially relevant at times like the present, when potential tariffs could lead to any number of different scenarios through the remainder of the year.
\n\u201c[We] cannot predict what the final tariff policies will look like, much less what the second-order effects on economic activity, fiscal policy and monetary policy will be,\u201d Fifth Third Chairman, CEO and President Tim Spence said during the call. \u201cWhat we can do is to ensure that our business mix is more naturally resilient, run our balance sheet defensively and maintain optionality so that we can react quickly as conditions change.\u201d
\nThe Ohio-based indirect parent company of Fifth Third Bank is pursuing several strategies to maintain resilience amid this uncertainty, Spence said. These include diverse national loan origination platforms that provide flexibility in generating loan growth; investments in Southeast branches and commercial payments that provide granular operational deposit funding; and credit concentration limits that ensure a diversified portfolio across asset classes, industries and regions.
\nThe bank also highlighted its proactive approach to managing credit risk; its diversified fee income sources; and day-to-day management that \u201cmaximizes optionality.\u201d
\nSpence said during the call that he traveled to meet with around 50 business owners in the five regions served by the bank and in sectors like materials, manufacturing, transportation, logistics, energy, automotive and healthcare to get their views on recent tariff announcements.
\nWhile all the business owners said they were surprised by the magnitude of the announced tariffs, they were split about how the tariffs might play out, Spence said. Half of the business owners viewed the tariffs as a negotiating tactic, while the other half expressed concern that higher tariffs would remain in place on major supply chain countries like China and Vietnam.
\nNearly all the business leaders said they would need to push prices to offset tariff costs because they have limited ability to absorb these costs in margins, he said.
\n\u201cWhat was maybe a little bit interesting to me is that the folks that have domestic supply chains were also saying they have to move prices in the U.S. because they\u2019re expecting that if the tariffs hold, they\u2019re going to experience volume losses in foreign markets, and \u2026 they require a certain amount of gross margin dollars just to be able to cover overheads and run their businesses,\u201d Spence said.
\nThe post Fifth Third Bancorp: Diversification Aids Resilience Amid Tariff-Driven Uncertainty appeared first on PYMNTS.com.
\n", "content_text": "Fifth Third Bancorp executives highlighted their proactive management and the bank\u2019s ability to navigate uncertain environments during a conference call Thursday (April 17) discussing first-quarter earnings.\nThey said these qualities are especially relevant at times like the present, when potential tariffs could lead to any number of different scenarios through the remainder of the year.\n\u201c[We] cannot predict what the final tariff policies will look like, much less what the second-order effects on economic activity, fiscal policy and monetary policy will be,\u201d Fifth Third Chairman, CEO and President Tim Spence said during the call. \u201cWhat we can do is to ensure that our business mix is more naturally resilient, run our balance sheet defensively and maintain optionality so that we can react quickly as conditions change.\u201d\nThe Ohio-based indirect parent company of Fifth Third Bank is pursuing several strategies to maintain resilience amid this uncertainty, Spence said. These include diverse national loan origination platforms that provide flexibility in generating loan growth; investments in Southeast branches and commercial payments that provide granular operational deposit funding; and credit concentration limits that ensure a diversified portfolio across asset classes, industries and regions.\nThe bank also highlighted its proactive approach to managing credit risk; its diversified fee income sources; and day-to-day management that \u201cmaximizes optionality.\u201d\nSpence said during the call that he traveled to meet with around 50 business owners in the five regions served by the bank and in sectors like materials, manufacturing, transportation, logistics, energy, automotive and healthcare to get their views on recent tariff announcements.\nWhile all the business owners said they were surprised by the magnitude of the announced tariffs, they were split about how the tariffs might play out, Spence said. Half of the business owners viewed the tariffs as a negotiating tactic, while the other half expressed concern that higher tariffs would remain in place on major supply chain countries like China and Vietnam.\nNearly all the business leaders said they would need to push prices to offset tariff costs because they have limited ability to absorb these costs in margins, he said.\n\u201cWhat was maybe a little bit interesting to me is that the folks that have domestic supply chains were also saying they have to move prices in the U.S. because they\u2019re expecting that if the tariffs hold, they\u2019re going to experience volume losses in foreign markets, and \u2026 they require a certain amount of gross margin dollars just to be able to cover overheads and run their businesses,\u201d Spence said.\nThe post Fifth Third Bancorp: Diversification Aids Resilience Amid Tariff-Driven Uncertainty appeared first on PYMNTS.com.", "date_published": "2025-04-17T13:08:19-04:00", "date_modified": "2025-04-17T13:08:19-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2024/05/Fifth-Third-Bank.jpg", "tags": [ "banking", "Banks", "Earnings", "economy", "fifth third bancorp", "Fifth Third Bank", "News", "PYMNTS News", "Revenue", "tariffs", "taxes", "What's Hot" ] }, { "id": "https://www.pymnts.com/?p=2686747", "url": "https://www.pymnts.com/earnings/2025/truist-says-80percent-of-transactions-self-service-as-mobile-banking-surges/", "title": "Truist Says 80% of Transactions Self-Service as Mobile Banking Surges", "content_html": "The banking landscape is in flux, and flux sometimes requires patience.
\nThat was the news delivered on Thursday\u2019s (April 17) first-quarter 2025 earnings call for Truist, where executives stressed to investors that digital and payments transformation doesn\u2019t always need to be disruptive to be effective.
\nSometimes, the best innovation is the one that compounds quietly. And for payments professionals and FinTech watchers, Truist\u2019s subtle but deliberate shift toward next-gen treasury solutions, consumer loan velocity and digital client onboarding reads like a quiet blueprint for navigating this era of incremental innovation in banking.
\nTreasury management revenue saw double-digit growth year over year, driven by what Truist described as \u201ccontinued payments momentum.\u201d The bank also launched real-time payments capabilities during the quarter, signaling its commitment to remaining competitive in a space increasingly influenced by FedNow adoption, B2B digital transformation and embedded finance.
\nBut investment in the payments business wasn\u2019t just commercial. On the retail side, digital loan origination via the mobile app climbed 31% compared to last year, with Gen Z borrowers spiking 47%. That could be a telling signal in a market where digital lending has matured beyond the millennial hype cycle into something more infrastructure-like.
\nRead also: Arculus, Mastercard and Truist Explore Fraud and the Economy\u2019s Three S\u2019s
\nThe Charlotte-based super-regional bank reported $1.2 billion in net income available to common shareholders for Q1 2025, or $0.87 per diluted share, representing a modest 7% improvement year over year but a 4% slip from Q4 2024\u200b.
\nTruist\u2019s digital journey also accelerated through experience enhancements and performance marketing that drove a 13% jump in digital account sales and a 23% year-over-year increase in new-to-bank clients via digital channels. These clients now account for 40% of all new relationships \u2014 a crucial metric as banks seek cost-effective scale.
\nTruist\u2019s bet on mobile distribution channels is now increasingly yielding dividends in both scale and efficiency. Truist\u2019s digital clients now exceed 7.3 million, and more than 80% of all transactions occur in self-service channels. The company\u2019s mobile app continues to be its cornerstone; 82% of all digital logins now happen via mobile, a figure that underscores how central mobile infrastructure has become to retail banking\u2019s economics and brand engagement.
\nAdjusted noninterest expense fell 5.4% from the previous quarter, driven by cuts in professional fees, equipment spend and other discretionary categories. This cost control didn\u2019t come at the expense of tech spending. Truist continued investing in risk infrastructure and digital capabilities \u2014 highlighting a subtle but important theme in modern banking: managing transformation within flat or even declining top-line environments.
\nProvision for credit losses was $458 million, a slight sequential decline, reflecting stable underwriting and modest credit deterioration.
\nDeposits increased by 0.6% on average, thanks to a 9.4% surge in time deposits \u2014 likely influenced by rate-sensitive behavior \u2014 as noninterest-bearing deposits declined 1.9%. Deposit costs came down 10 basis points to 1.79%, aided by repricing efforts in a gradually loosening rate environment\u200b.
\nAt the same time, the ongoing macro uncertainties around global trade and the ripple effect of market turbulence has hurt Truist\u2019s investment banking and trading income, executives noted.
\nRead more: Truist Blends Innovation With Operational Stability and Digital Efficiency
\n\u201cConsumers today operate in what I call the three S\u2019s of the economy: speed, simplicity, and safety,\u201d Chris Ward, head of enterprise payments at\u00a0Truist, told PYMNTS in a separate interview posted in February 2025. \u201cPeople want to transact quickly and simply, and they need confirmation that the transaction was completed.\u201d
\nData from the recent PYMNTS Intelligence report, \u201cThe State of Digital Lending Readiness,\u201d sheds light on the varying degrees to which banks are equipped to handle lending in the digital age.
\nWhile 70% of financial institutions report having mostly automated consumer lending, only around one-third have achieved similar automation for small and medium-sized business (SMB) lending.
\nThe post Truist Says 80% of Transactions Self-Service as Mobile Banking Surges appeared first on PYMNTS.com.
\n", "content_text": "The banking landscape is in flux, and flux sometimes requires patience.\nThat was the news delivered on Thursday\u2019s (April 17) first-quarter 2025 earnings call for Truist, where executives stressed to investors that digital and payments transformation doesn\u2019t always need to be disruptive to be effective.\nSometimes, the best innovation is the one that compounds quietly. And for payments professionals and FinTech watchers, Truist\u2019s subtle but deliberate shift toward next-gen treasury solutions, consumer loan velocity and digital client onboarding reads like a quiet blueprint for navigating this era of incremental innovation in banking.\nTreasury management revenue saw double-digit growth year over year, driven by what Truist described as \u201ccontinued payments momentum.\u201d The bank also launched real-time payments capabilities during the quarter, signaling its commitment to remaining competitive in a space increasingly influenced by FedNow adoption, B2B digital transformation and embedded finance.\nBut investment in the payments business wasn\u2019t just commercial. On the retail side, digital loan origination via the mobile app climbed 31% compared to last year, with Gen Z borrowers spiking 47%. That could be a telling signal in a market where digital lending has matured beyond the millennial hype cycle into something more infrastructure-like.\nRead also: Arculus, Mastercard and Truist Explore Fraud and the Economy\u2019s Three S\u2019s\nDigital Bets and the Steady but Quiet Power of Payments\nThe Charlotte-based super-regional bank reported $1.2 billion in net income available to common shareholders for Q1 2025, or $0.87 per diluted share, representing a modest 7% improvement year over year but a 4% slip from Q4 2024\u200b.\nTruist\u2019s digital journey also accelerated through experience enhancements and performance marketing that drove a 13% jump in digital account sales and a 23% year-over-year increase in new-to-bank clients via digital channels. These clients now account for 40% of all new relationships \u2014 a crucial metric as banks seek cost-effective scale.\nTruist\u2019s bet on mobile distribution channels is now increasingly yielding dividends in both scale and efficiency. Truist\u2019s digital clients now exceed 7.3 million, and more than 80% of all transactions occur in self-service channels. The company\u2019s mobile app continues to be its cornerstone; 82% of all digital logins now happen via mobile, a figure that underscores how central mobile infrastructure has become to retail banking\u2019s economics and brand engagement.\nAdjusted noninterest expense fell 5.4% from the previous quarter, driven by cuts in professional fees, equipment spend and other discretionary categories. This cost control didn\u2019t come at the expense of tech spending. Truist continued investing in risk infrastructure and digital capabilities \u2014 highlighting a subtle but important theme in modern banking: managing transformation within flat or even declining top-line environments.\nProvision for credit losses was $458 million, a slight sequential decline, reflecting stable underwriting and modest credit deterioration.\nDeposits increased by 0.6% on average, thanks to a 9.4% surge in time deposits \u2014 likely influenced by rate-sensitive behavior \u2014 as noninterest-bearing deposits declined 1.9%. Deposit costs came down 10 basis points to 1.79%, aided by repricing efforts in a gradually loosening rate environment\u200b.\nAt the same time, the ongoing macro uncertainties around global trade and the ripple effect of market turbulence has hurt Truist\u2019s investment banking and trading income, executives noted.\nRead more: Truist Blends Innovation With Operational Stability and Digital Efficiency\n\u201cConsumers today operate in what I call the three S\u2019s of the economy: speed, simplicity, and safety,\u201d Chris Ward, head of enterprise payments at\u00a0Truist, told PYMNTS in a separate interview posted in February 2025. \u201cPeople want to transact quickly and simply, and they need confirmation that the transaction was completed.\u201d\nData from the recent PYMNTS Intelligence report, \u201cThe State of Digital Lending Readiness,\u201d sheds light on the varying degrees to which banks are equipped to handle lending in the digital age.\nWhile 70% of financial institutions report having mostly automated consumer lending, only around one-third have achieved similar automation for small and medium-sized business (SMB) lending.\nThe post Truist Says 80% of Transactions Self-Service as Mobile Banking Surges appeared first on PYMNTS.com.", "date_published": "2025-04-17T11:04:48-04:00", "date_modified": "2025-04-17T21:05:35-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/Truist-mobile-banking.png", "tags": [ "B2B", "B2B Payments", "banking", "Banks", "commercial payments", "Digital Banking", "Earnings", "financial services", "mobile banking", "News", "PYMNTS News", "real time payments", "truist", "truist bank", "Truist Financial", "What's Hot In B2B" ] }, { "id": "https://www.pymnts.com/?p=2686062", "url": "https://www.pymnts.com/earnings/2025/us-bancorp-says-card-delinquencies-improve-eyes-money-movement-growth/", "title": "U.S. Bancorp Says Card Delinquencies Improve, Eyes \u2018Money Movement\u2019 Growth", "content_html": "U.S. Bancorp\u2019s first-quarter earnings results showed strong credit quality, as consumer card delinquencies slipped year over year even with the current state of macroeconomic uncertainty.
\nManagement also pointed to the diversification of the bank\u2019s revenue streams as a benefit in today\u2019s operating environment, where U.S. Bancorp sees long-term potential in its payments-focused businesses and embedded money movement.
\nIn remarks to analysts during the company\u2019s conference call following the earnings release Wednesday (April 16), CEO Gunjan Kedia said: \u201cImportantly, our credit quality and capital levels are strong. This quarter, our net charge-off ratio improved modestly and we continued to build capital. We are in an environment of intense market and economic volatility \u2026 and we are prepared for a variety of possible scenarios.\u201d
\n\u201cWe have an opportunity to do better with our payments businesses,\u201d Kedia said during the call. Money movement capabilities are critical to anchoring client relationships, and we are committed to building a vibrant payments franchise.\u201d
\nWithin that segment, the company notched $925 billion in trailing 12 months payments volumes, representing a 4% compound annual growth rate through the past two years. Payments-related average loans were 6.1% higher, compounded, through the same time frame, to $42 billion.
\n\u201cWe have a greater focus on the affluent customer,\u201d Kedia said during the call.
\nThe merchant payments services business will be transformed through \u201cgreater interconnectivity across the bank [and] a strategic shift to a tech-led operating model that is more consistent with the buying behavior of consumers today,\u201d she said. \u201cTech-led represents over one-third of total merchant processing revenue, and most of our revenue generation is now concentrated in our five targeted verticals,\u201d including retail, services, travel, entertainment and healthcare.
\nMerchant processing fees were up 3.5% year over year.
\nOn a day of broad market losses, U.S. Bancorp shares slipped 2% Wednesday.
\nChief Financial Officer John Stern said during the call that the first-quarter net charge-off ratio of 0.59% improved one basis point linked quarter. The earnings supplementals indicated that overall 90-day delinquency rates were 0.2%. Within the card portfolio, delinquencies up to 90 days stood at 1.3% of card loans, down from 1.4%.
\nAsked by analysts on the call about consumer spending trends, Kedia said: \u201cWe saw a modest pullback in consumer spending early in the year, and that was very weather-related. And it has stabilized\u2026 We are watching the downward trend in consumer sentiment but not seeing that in our spend patterns. Our mix does tilt toward the more affluent customer and toward non-discretionary everyday spend patterns. So that could be an explanation, but we are seeing steady consumer spend patterns in the first quarter.\u201d
\nLater, in discussing the merchant-facing business, Kedia said: \u201cIt\u2019s an important organic growth opportunity \u2026 the [merchant payments services] business is about 5% of our overall bank, but a very important differentiator for us. It\u2019s a very competitive space, and the reason to think about focusing on the five verticals is you can build stronger deck-led value propositions for each of the verticals\u2026 And the more we have focused our acquisition efforts and our organic growth efforts on those verticals, the deeper and the better execution we have. And today, about 90% of our revenue focus is on those verticals.\u201d
\nThe post U.S. Bancorp Says Card Delinquencies Improve, Eyes \u2018Money Movement\u2019 Growth appeared first on PYMNTS.com.
\n", "content_text": "U.S. Bancorp\u2019s first-quarter earnings results showed strong credit quality, as consumer card delinquencies slipped year over year even with the current state of macroeconomic uncertainty.\nManagement also pointed to the diversification of the bank\u2019s revenue streams as a benefit in today\u2019s operating environment, where U.S. Bancorp sees long-term potential in its payments-focused businesses and embedded money movement.\nIn remarks to analysts during the company\u2019s conference call following the earnings release Wednesday (April 16), CEO Gunjan Kedia said: \u201cImportantly, our credit quality and capital levels are strong. This quarter, our net charge-off ratio improved modestly and we continued to build capital. We are in an environment of intense market and economic volatility \u2026 and we are prepared for a variety of possible scenarios.\u201d\nEyeing Money Movement Growth\n\u201cWe have an opportunity to do better with our payments businesses,\u201d Kedia said during the call. Money movement capabilities are critical to anchoring client relationships, and we are committed to building a vibrant payments franchise.\u201d\nWithin that segment, the company notched $925 billion in trailing 12 months payments volumes, representing a 4% compound annual growth rate through the past two years. Payments-related average loans were 6.1% higher, compounded, through the same time frame, to $42 billion.\n\u201cWe have a greater focus on the affluent customer,\u201d Kedia said during the call.\nThe merchant payments services business will be transformed through \u201cgreater interconnectivity across the bank [and] a strategic shift to a tech-led operating model that is more consistent with the buying behavior of consumers today,\u201d she said. \u201cTech-led represents over one-third of total merchant processing revenue, and most of our revenue generation is now concentrated in our five targeted verticals,\u201d including retail, services, travel, entertainment and healthcare.\nMerchant processing fees were up 3.5% year over year.\nOn a day of broad market losses, U.S. Bancorp shares slipped 2% Wednesday.\nChief Financial Officer John Stern said during the call that the first-quarter net charge-off ratio of 0.59% improved one basis point linked quarter. The earnings supplementals indicated that overall 90-day delinquency rates were 0.2%. Within the card portfolio, delinquencies up to 90 days stood at 1.3% of card loans, down from 1.4%.\nAsked by analysts on the call about consumer spending trends, Kedia said: \u201cWe saw a modest pullback in consumer spending early in the year, and that was very weather-related. And it has stabilized\u2026 We are watching the downward trend in consumer sentiment but not seeing that in our spend patterns. Our mix does tilt toward the more affluent customer and toward non-discretionary everyday spend patterns. So that could be an explanation, but we are seeing steady consumer spend patterns in the first quarter.\u201d\nLater, in discussing the merchant-facing business, Kedia said: \u201cIt\u2019s an important organic growth opportunity \u2026 the [merchant payments services] business is about 5% of our overall bank, but a very important differentiator for us. It\u2019s a very competitive space, and the reason to think about focusing on the five verticals is you can build stronger deck-led value propositions for each of the verticals\u2026 And the more we have focused our acquisition efforts and our organic growth efforts on those verticals, the deeper and the better execution we have. And today, about 90% of our revenue focus is on those verticals.\u201d\nThe post U.S. Bancorp Says Card Delinquencies Improve, Eyes \u2018Money Movement\u2019 Growth appeared first on PYMNTS.com.", "date_published": "2025-04-16T15:49:49-04:00", "date_modified": "2025-04-16T15:49:49-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/US-Bank.jpg", "tags": [ "banking", "Banks", "Consumer Spending", "credit", "credit cards", "Earnings", "economy", "News", "PYMNTS News", "Revenue", "u.s. bancorp", "U.S. Bank" ] }, { "id": "https://www.pymnts.com/?p=2685882", "url": "https://www.pymnts.com/earnings/2025/commerce-bancshares-grows-wealth-management-business-with-trust-fees-up-11percent/", "title": "Commerce Bancshares Grows Wealth Management Business, With Trust Fees Up 11%", "content_html": "Commerce Bancshares continued growing its wealth management business in the first quarter, after announcing two quarters earlier that it was targeting that business.
\nThe trust fees portion of the wealth management business increased 11% year over year, driven by higher private client fees, the regional bank holding company and parent company of Commerce Bank said in a Wednesday (April 16) earnings highlights presentation.
\nThis growth contributed to 7% year-over-year growth in Commerce Bancshares\u2019 non-interest income and helped the company diversify its revenue, according to the presentation.
\n\u201cNon-interest income was $159 million and made up 37.1% of total revenue, led by trust fees in our wealth management business of $57 million,\u201d Commerce Bancshares CEO John Kemper said in a Wednesday earnings release. \u201cOur strength in wealth management is exemplified by its continued growth, with trust fees up 10.7% over the same period last year.\u201d
\nCommerce Bancshares said about six months earlier, in its third-quarter investor update, that it aimed to grow its wealth management business by using its new private banking loan and deposit system to offer specialized products, services and automation, and by expanding into new markets in which wealth is concentrated.
\nIts subsidiary, Commerce Bank, maintains wealth management offices in three cities outside its core banking footprint: Dallas, Houston and Naples, Florida, according to the presentation released Wednesday. It also offers wealth management services in the Midwestern states that make up its core banking footprint.
\nCommerce Bancshares\u2019 net interest income grew 8% year over year during the first quarter and reached a record quarterly high of $269 million, Kemper said in the earnings release.
\nKemper said that the bank\u2019s credit profile remains strong, and its capital and liquidity levels remain robust, adding that these qualities will help Commerce Bank serve its customers and ensure its own soundness during increasingly uncertain times.
\n\u201cGiven recent news related to tariffs and trade restrictions, and in light of ongoing adjustment in capital markets, the outlook for the future is increasingly uncertain,\u201d Kemper said in the release. \u201cNonetheless, our franchise is well-positioned to weather any economic disruption, execute our long-term strategies, serve our customers and deliver value to our shareholders.\u201d
\nThe post Commerce Bancshares Grows Wealth Management Business, With Trust Fees Up 11% appeared first on PYMNTS.com.
\n", "content_text": "Commerce Bancshares continued growing its wealth management business in the first quarter, after announcing two quarters earlier that it was targeting that business.\nThe trust fees portion of the wealth management business increased 11% year over year, driven by higher private client fees, the regional bank holding company and parent company of Commerce Bank said in a Wednesday (April 16) earnings highlights presentation.\nThis growth contributed to 7% year-over-year growth in Commerce Bancshares\u2019 non-interest income and helped the company diversify its revenue, according to the presentation.\n\u201cNon-interest income was $159 million and made up 37.1% of total revenue, led by trust fees in our wealth management business of $57 million,\u201d Commerce Bancshares CEO John Kemper said in a Wednesday earnings release. \u201cOur strength in wealth management is exemplified by its continued growth, with trust fees up 10.7% over the same period last year.\u201d\nCommerce Bancshares said about six months earlier, in its third-quarter investor update, that it aimed to grow its wealth management business by using its new private banking loan and deposit system to offer specialized products, services and automation, and by expanding into new markets in which wealth is concentrated.\nIts subsidiary, Commerce Bank, maintains wealth management offices in three cities outside its core banking footprint: Dallas, Houston and Naples, Florida, according to the presentation released Wednesday. It also offers wealth management services in the Midwestern states that make up its core banking footprint.\nCommerce Bancshares\u2019 net interest income grew 8% year over year during the first quarter and reached a record quarterly high of $269 million, Kemper said in the earnings release.\nKemper said that the bank\u2019s credit profile remains strong, and its capital and liquidity levels remain robust, adding that these qualities will help Commerce Bank serve its customers and ensure its own soundness during increasingly uncertain times.\n\u201cGiven recent news related to tariffs and trade restrictions, and in light of ongoing adjustment in capital markets, the outlook for the future is increasingly uncertain,\u201d Kemper said in the release. \u201cNonetheless, our franchise is well-positioned to weather any economic disruption, execute our long-term strategies, serve our customers and deliver value to our shareholders.\u201d\nThe post Commerce Bancshares Grows Wealth Management Business, With Trust Fees Up 11% appeared first on PYMNTS.com.", "date_published": "2025-04-16T12:20:58-04:00", "date_modified": "2025-04-16T21:00:58-04:00", "authors": [ { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" } ], "author": { "name": "PYMNTS", "url": "https://www.pymnts.com/author/pymnts/", "avatar": "https://secure.gravatar.com/avatar/679fcf5c2ed5358e99e8e23b22e3b5d761e37bdb76fa7b0e13d8ecd9ff01bf88?s=512&d=blank&r=g" }, "image": "https://www.pymnts.com/wp-content/uploads/2025/04/Commerce-Bank.jpg", "tags": [ "B2B", "B2B Payments", "banking", "Banks", "Commerce Bancshares", "Commerce Bank", "commercial payments", "Earnings", "economy", "News", "PYMNTS News", "Revenue", "tariffs", "taxes", "What's Hot", "What's Hot In B2B" ] } ] }