Citizens Financial Group Mgmt Meeting: HELOCs Key Driver; Deposit Pricing Competitive; Consumer Sentiment Vs. Behavior

Research evidence excerpt

Citizens Financial Group Mgmt Meeting: HELOCs Key Driver; Deposit Pricing Competitive; Consumer Sentiment Vs. Behavior

J P M O R G A N North America Equity Research

15 May 2026

Citizens Financial Group Overweight

CFG, CFG US

Mgmt Meeting: HELOCs Key Driver; Deposit Pricing Price (14 May 26):$61.18

Competitive; Consumer Sentiment Vs. Behavior

Banks — Large-Cap

We traveled with Citizens’ President, Brendan Coughlin, last week. Key Vivek Juneja AC

takeaways: 1) consumers are holding up, as reflected in their behavior, even though (1-212) 622-6465

consumer sentiment is weak; 2) Reimagine the Bank project has a lot of initiatives vivek.juneja@jpmorgan.com

well underway, with more to come - it is hurting earnings currently but benefits Andrew J Dietrich

should offset expenses in the second half; 3) Private Bank expansion continues, led (1-212) 622-4244

by growing multifamily loans, deposits, and wealth management; 4) deposit aj.dietrich@jpmorgan.com

pricing remains competitive across the franchise; 5) HELOCs is the main Sai M Nettem

consumer loan growth category; 6) Consumer Bank continues to shift its client mix (1-212) 622-2666

sai.nettem@jpmorgan.com

to more mass affluent clients from mass market; 7) credit card loans is another area J.P. Morgan Securities LLC

targeted for growth; 8) net interest income and net interest margin would only be

impacted if Fed Funds rate goes below 2.75%; 9) Basel 3 capital proposal should

reduce RWA by about 10% with a very large proportion of the benefit from

residential mortgage loans; and 10) AI tools are not expected to impact Private

Bank deposits because those customers are already very good at maximizing yield.

• Consumer lending focused on HELOCs and also trying to grow credit