My 2c on Financials: US Financials Sector Specialist Commentary Banks · Insurance · Diversified Financials

Research evidence excerpt

My 2c on Financials: US Financials Sector Specialist Commentary Banks · Insurance · Diversified Financials

Rob O'Dwyer - Specialist Sales - US Financials AC North America Specialist Sales J P M O R G A Nrob.odwyer@jpmorgan.com

J.P. Morgan Securities LLC 14 July 2026

My 2c on Financials

Rob O’Dwyer

+1 2126222673

rob.odwyer@jpmorgan.com

Key Highlights

• Bank Earnings

• CPI

• Personal Lines Preview / PGR Downgrade

Morning – a lot to digest this morning. I want to focus on three things – bank earnings, CPI, and PGR downgrade.

Bank Earnings

Overall, early feedback on the banks seems to be that there is a bit of a sense that it’s better to travel well than arrive for this trade,

which was the fear ahead of the print given the +20% move in large cap banks YTD. Having said that I’ll be looking for some

differentiation as the morning progresses here. My sense is that investors like the BAC print and clearly the starting point on

BAC from a valuation point of view (notwithstanding the recent rally) is less challenging than some of the peers. After BAC, GS

clearly had an outstanding quarter but some investors have posed the question, “what next?” given the strength in this business.

The clear undertone is fear of a deal at GS. I think both C & WFC are fine but both prints may struggle to attract new money here.

A few thoughts on each bank reporting below.

• BAC (=/+) Interested in pushback here but I think these shares should be bid. NII and NIM inline, big fee income beat

and expenses well controlled. Nets out to healthy PPNR beat. Investment banking is pretty impressive, in particular

strong equity biz as it looks like we're going to see across the board. Perhaps a bear would say that this isn't the best way