Consumer Finance: MS Financials Conference 2026: Key Takeaways

Research evidence excerpt

Consumer Finance: MS Financials Conference 2026: Key Takeaways

FoundationMmachine learning for years in areas such as fraud detection, credit underwriting and

risk management, with generative AI representing the next phase of those

capabilities rather than a completely new technology cycle.

Capital return in focus for investors. With most stocks in our coverage

underperforming YTD, and proposed capital rules set to drive a meaningful amount

of capital relief, many investors are focused on how aggressive management teams

will be in deploying capital. Most management teams struck a measured tone,

emphasizing that incremental capital would first support growth initiatives,

technology investment and balance sheet flexibility. BFH remains the most front-

footed on capital return, which has ramped buybacks over the past year and

reiterated its intention to maintain an active capital-return cadence, with additional

preferred issuance creating room for further repurchases. ALLY similarly highlighted

the proposal as constructive, though reiterated its preference to prioritize accretive

growth opportunities. Despite emphasizing a conservative approach to capital, COF

nonetheless highlighted capital return as an important component of shareholder

value creation, does not intend to simply accumulate excess capital over time, while

highlighting buybacks and capital return as an important component of shareholder

value creation.

Key Takeaways by Company:

• ALLY: 1) Strong momentum from 1Q continuing through May. While ALLY is

not changing guidance, the company reiterated confidence in ability to drive

NIM expansion off the back of 3 OSA pricing cuts this year and CD pricing

momentum. Pleased with credit trends, but remains measured amid the

macro environment.