2Q26 Preview: Ringing the Bell on Commercial Loan Growth

Research evidence excerpt

2Q26 Preview: Ringing the Bell on Commercial Loan Growth

Equity Research

Earnings Preview — July 6, 2026

Large-Cap Banks

Mid-Cap Banks

2Q26 Preview: Ringing the Bell on Commercial

Loan Growth

One Extra Tailwind in the Bank "Sweet Spot"

Our Call Mike Mayo, CFA

Bank outperformance should continue for the 3rd yr in a row, further aided by multi- Equity Analyst | Wells Fargo Securities, LLC Mike.Mayo@wellsfargo.com | 212-214-5300

year inflection in C&I growth. This should help regionals, esp. FITB, KEY, USB, and PNC.

Christopher Spahr, CFATop cap mkts for the price: C, STT, BAC, JPM, GS (priority order).

Equity Analyst | Wells Fargo Securities, LLC

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

What's new ahead: acceleration in C&I growth after almost 50-year low growth rates, Robert Rutschow

due to the "5 T's" - Tailwinds from the OBBB (bonus depreciation), Tariff refunds, Trickle Equity Analyst | Wells Fargo Securities, LLC

down effect from AI, Take-back some share from pvt credit; and Tolerance by clients for Robert.Rutschow@wellsfargo.com | 212-214-5302

geopolitical uncertainty as the new normal. This provides an extra 10% bull case upside for Hayden Girard, CFA

regionals over 3 years. Associate Equity Analyst | Wells Fargo Securities, LLC

Hayden.Girard@wellsfargo.com | 212-214-5303

What's taking place now = sweet spot for banks. That's aided by the "5 C's" - 1) C&I Juan Recalde, CFA

loan growth accelerating. 2) Cap mkts better than expected Capital Market Ests on 5 Associate Equity Analyst | Wells Fargo Securities, LLC Juan.Recalde@wellsfargo.com | 212-214-5287

Banks. 3) Costs improving relative to revenues; 4) Credit remains strong. 5) Capital level

flexibility aids buybacks and recent 13% dividend increases post-Fed Stress test. This

should lead to est.