U.S. Large Cap Banks & Consumer Finance: Post call takeaways: USB, CFG

Research evidence excerpt

U.S. Large Cap Banks & Consumer Finance: Post call takeaways: USB, CFG

Global Research

16 July 2026ab

U.S. Large Cap Banks & Consumer Finance Equities

AmericasPost call takeaways: USB, CFG

Financial

Erika Najarian

USB: Consensus should be square after this quarter Analyst

As we noted in our preview, we think there was some confusion as to what was and erika.najarian@ubs.com

what wasn't included in consensus. After catching up with the company, we think the +1-212-713 2491

AMZN portfolio and BTIG revenues (though there could clearly be upside to the ~ Zachary Westerlind

$200mn/qtr in this environment) are included, but that the Street needed to incorporate Associate Analyst

related BTIG expenses, which comes at a ~15% margin (or ~85% efficiency ratio). Note zachary.westerlind@ubs.com

that the $60mn of integration costs flagged on the call is included in ~200bp of positive +1-212-713 2404

operating leverage, but not in the ~15% margin discussion. To note, we would flag that Chintan Prakash

USB is looking for NII growth "north of 5%"; consensus is at 5.7%. The company Associate Analyst

appeared confident in the outlook for 2H NIM expansion, and for loan growth and chintan.prakash@ubs.com

deposit growth to be somewhat in line. Of course, loan growth could continue to +1-212-713 3061

outpace, for which USB would use investment securities portfolio proceeds to fund. The Charles Brennan

period-end balance sheet looked grossed-up with higher ST borrowings and higher cash Associate Analyst

at period end, ending at $726bn, but USB noted that there were custody flows that charles.brennan@ubs.com

ebbed during the period, and that the balance sheet should average back down to +1-212-713 2227

$700bn for 3Q.

CFG: Assuming lending growth eases in the back half