Western Alliance: Investor Day Recap - Valuation Discount To Fundamentals, Credit Inflection Key Catalyst

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Western Alliance: Investor Day Recap - Valuation Discount To Fundamentals, Credit Inflection Key Catalyst

Deutsche Bank

Research

Rating Company Date

Buy Western Alliance 13 May 2026

North America Reuters Bloomberg Rating Buy

United States WAL.N WAL US Price target (USD) 92.00 Price at 12 May 26 77.56

52-week range 96.08 – 66.70

Financial

Banks Valuation & Risks

Investor Day Recap - Valuation Discount To

Fundamentals, Credit Inflection Key Catalyst BernardResearchVon-GizyckiAnalyst

+1-212-250-5881

What’s in this note?

On 5/12, WAL hosted its inaugural investor day in NYC. Mgmt was optimistic

about the medium-term outlook on balance-sheet growth and profitability and

how that should narrow the valuation gap to peers over time. WAL noted that its

commercial banking model has been built to scale, deposit initiatives are specialty

focused and represent the largest deposit growth drivers and are a structural

advantage vs. peers, mortgage banking provides a countercyclical diversified

earnings growth driver, WAL is ready to be a Category IV bank through disciplined

risk and credit mgmt, and technology investments will drive operating leverage

across verticals (and percentage of grow-the-bank investments will continue to

grow over time). Mgmt expects its business strategy to drive peer-leading PPNR

and tangible book value growth.

While there was a lot of detail on the various business segments across the

franchise, our three main takeaways are regarding credit, deposit composition

and the newly introduced financial targets.

o Credit. Coming into this event, there have been a number of credit issues

involving alleged fraud and non-fraud (recent 10Q highlights – see note

Western Alliance: Why Shares Are Selling Off (Again), 10Q Credit

Updates) that have put pressure on shares.