Up Capital Market Estimates on 5 Banks

Research evidence excerpt

Up Capital Market Estimates on 5 Banks

Equity Research

Price Target Change — June 24, 2026

Large-Cap Banks

Look at Big Brokers and Trust Banks

Our Call Mike Mayo, CFA

Results in 2Q26 should further confirm our forecast for record capital markets in Equity Analyst | Wells Fargo Securities, LLC Mike.Mayo@wellsfargo.com | 212-214-5300

each 2026, 2027, and 2028. We increase ests. on several capital market players as we

Christopher Spahr, CFApreviously did so on #1 pick Citigroup.

Equity Analyst | Wells Fargo Securities, LLC

Christopher.Spahr@wellsfargo.com | 212-214-5301

Mega-banks benefit from mega-IPOs, mega-mergers, and mega-financings. While this Robert Rutschow

is consistent w/ our ongoing theme of "Goliath is Winning", what's new is the degree that Equity Analyst | Wells Fargo Securities, LLC

this is playing out more than expected. Thus, the debate now seems less whether there is Robert.Rutschow@wellsfargo.com | 212-214-5302

a robust cycle but rather its length. Our two capital market favorites are GS and STT, while Hayden Girard, CFA

still highlighting Citi as our #1 pick, and with more relative emphasis on a catch-up trade Associate Equity Analyst | Wells Fargo Securities, LLC

of more diversified banks/regionals. Hayden.Girard@wellsfargo.com | 212-214-5303

Themes:

More mergers. Both CEO confidence and CEO anxiety can spur more mergers in a world

where scale is winning. GS has reached the $1T mark YTD for announced deals.

More IPOs. The largest IPO and likely additional ones ahead can create a multiplier effect

(as do mergers) in areas like Wealth.

Trading. Volatility has remained higher than usual even if it might subside from 1Q26.

Trust banks should continue to benefit from a flight-to-quality benefit in deposits and f/x

volatility.

Increase ests.