First Read: U.S. Large Cap Banks & Consumer Finance "Regional round-up:..."

Research evidence excerpt

First Read: U.S. Large Cap Banks & Consumer Finance "Regional round-up:..."

Global Research

17 July 2026ab

First Read

EquitiesU.S. Large Cap Banks & Consumer Finance

Regional round-up: TFC adjusts revenue guide, Americas

FITB + RF outlook largely in-line Financial

Erika Najarian

Analyst

erika.najarian@ubs.com

TFC: Revenue guide adjusted lower, moving pieces on 2Q beat +1-212-713 2491

TFC reported 2Q EPS of $1.23, with the 15c beat to consensus coming from PPNR (7c; Zachary Westerlind

more on this in a bit), lower provisions (5c), and lower tax rate (~5c). The PPNR beat Associate Analyst

came from fees, with "other fees" accounting for 5c of the 7c beat and capital markets zachary.westerlind@ubs.com

accounting for the rest. Other income was flattered due to essentially higher returns in +1-212-713 2404

investments, with some offset on personnel costs. Expenses were 2c heavier. NII of Chintan Prakash

$3.6bn was a one penny miss to the Street as NIM came in at 2.98%, 4bps lower than Associate Analyst

the Street, as deposits costs of 2.12% were 3bps higher than the Street. That said, chintan.prakash@ubs.com

average loan growth was in-line with consensus. Looking at the 2026 guide, we note +1-212-713 3061

the only change was a negative one, with revenues now expected to be up 3.5-4.0% Charles Brennan

versus 4% previously. Bottom line: Given the NII and NIM miss, the fee beat’s Associate Analyst

reliance on other income, the lower band to the 2026 revenue guide, and charles.brennan@ubs.com

quietly long positioning, we expect the shares to underperform. We expect the +1-212-713 2227

company to field questions on the leadership transition and targets, which we

think are tricky questions to field given incoming CEO Mike Lyons will start in

September.