2026 Stress Test: Positive for CFG, COF, C

Research evidence excerpt

2026 Stress Test: Positive for CFG, COF, C

Update

June 24, 2026 11:11 PM GMT

Morgan Stanley & Co. LLCMUS Banks | North America Manan Gosalia

Equity Analyst

2026 Stress Test: Positive for Manan.Gosalia@morganstanley.comJeffrey Adelson, CFA +1 212 761-4092

Jeff.Adelson@morganstanley.com +1 212 761-1761

CFG, COF, C Ryan Kenny, CFA

As we expected coming into the test results, inferred Stress Capital Buffers for CFG, Ryan.Kenny@morganstanley.com +1 212 761-1664

Brian Wilczynski, CFA

COF, C moved lower. While test results do not impact official capital requirements, Equity Analyst

improving y/y trends for these 3 stocks are positive for sentiment and support Brian.Wilczynski@morganstanley.com +1 212 761-1084

Connell J Schmitz

future buyback capacity. Research Associate

Connell.Schmitz@morganstanley.com +1 212 761-6252

Key takeaways: Ben Bayanfar

Research Associate

• While 2026 stress test results do not impact official capital requirements, Ben.Bayanfar@morganstanley.com +1 212 761-0649

test results released today are useful because we can still infer what the new Alexander L Ward

Stress Capital Buffers (SCB) would be by looking at the capital drawdown Alex.Ward@morganstanley.com +1 212 296-3096

and dividend prefunding (calculations below). Joseph Leeman

• Inferred SCB for 7 of the banks we cover moved lower vs. the last stress test Research Associate

Joseph.Leeman@morganstanley.com +1 212 761-4381

- CFG, COF, FITB, KEY, C, MTB and USB.

Large Cap Banks

• Meaningful improvement on inferred SCBs can be attributed to fundamental

North America

changes in the business for CFG, COF and C, and an easier stress test for off Industry View Attractive

cycle banks like CFG, FITB and KEY (CFG benefits from both). Midcap Banks

• We view this as most positive for CFG, COF and C.