US Banks - TGIF: It's Not You, It's Me?

Research evidence excerpt

US Banks - TGIF: It's Not You, It's Me?

Truist Securities

Equity Research Report June 5, 2026

FINANCIALS: Banks

Amid the latest stretch of financials' underperformance (until yesterday at least), our

John McDonald conversations have been dominated by the question of "what's wrong with the group"?

212-303-4179 It's been a hard pitch with money rotating elsewhere, P/TBV multiples not so cheap,

John.McDonald@truist.com structural deposit fears, and a feeling that bank earnings and ROTCEs might be peak-

ish. All that said, there's a positive case to be made for solid near-term fundamentals,

Brian Foran positive EPS revisions, attractive P/E valuations, ongoing capital return, and 12-14%

212-303-4146 + EPS growth over the next two years. And as we saw yesterday, any blip in other

Brian.Foran@truist.com crowded sectors can quickly flip the rotation script back to financials.

David Smith 212-319-3623 Quotes of the Week

David.Smith@truist.com

"I thought I'd seen it all until I got an email from Jalen Brunson today asking me to

support him in the Extel survey" - HF PM Peter Nicolo

212-303-4141 "Financial stocks are finally up for a day -- trading in solidarity with the Knicks. Truly the

Peter.Nicolo@truist.com only sector that gets it" - LO Analyst

John Manahan "Financials investors are all a bunch of nervous nellies" - LO Generalist PM

212-303-4158

John.Manahan@truist.com "Will you guys ever write about what's going RIGHT with banks?" - HF Analyst

"Do I have this correct? Banks are over-earning, so investors aren't buying, but earnings

23 Page Document are also so good that management's aren't selling?" - LO Analyst

"At this point, my best idea for deploying capital is into Garth Brooks' music catalog"

Reasons for this report - HF PM

✓ Sector Update It's Not You, It's Me?