BNY / PNC 2Q26 First Look

Research evidence excerpt

BNY / PNC 2Q26 First Look

July 15, 2026

Company: Fundamental Valuation Methodology:

PNC Financial To derive our Fair Value range, we apply P/E multiples to our 2027E EPS, credit

excess capital, 2026 dividend, and discounted AOCI per share.

Wolfe Research, LLC Fundamental Recommendation, Rating and Target Price Risks:

Company: Risks That May Impede Achievement of the Recommendation, Rating or Target

Price:

Bank of New York Mellon Upside risks to our PT include: 1) Better than expected organic growth which poses

upside risk to our fee estimates; 2) Balance sheet growth which would support

upside to our NII estimate; 3) BK maintains considerable excess capital relative to

G-SIB peers, which if deployed into share repurchases, could drive EPS growth

above our modeled estimates. Downside risks to our PT include: 1) Pershing results

surprise negatively relative to our expectations; 2) Fed balance sheet could decline

with greater than expected Institutional deposit outflows; 3) Expense flex could be

more limited and weigh on margin expansion; and 4) Fee rate pressures could be

greater than expected, resulting in more severe revenue declines vs. our forecast.

PNC Financial Upside risks include: 1) Better loan / deposit growth than we contemplate; 2)

Better than expected revenue / expense synergies from FirstBank; 3) Higher capital

markets revenue drives better EPS growth than we contemplate. Downside risks

include: 1) Worse loan / deposit growth than we contemplate; 2) Less synergies

from FirstBank than we contemplate; 3) Macro weakness that drives higher than

expected credit losses.

Wolfe Research, LLC Research Disclosures:

Company: Research Disclosures:

Bank of New York Mellon None

PNC Financial None

Other Disclosures:

Wolfe Research, LLC Fundamental Stock Ratings Key: