U.S. Banks: Updating Model Estimates

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U.S. Banks: Updating Model Estimates

RBC Capital Markets, LLC

Gerard Cassidy (Co-Head of

Global Financials Research)

(207) 780-1554,

gerard.cassidy@rbccm.com

Thomas Leddy (AVP)

thomas.leddy@rbccm.com

June 22, 2026

U.S. Banks: Updating Model EstimatesRESEARCH Recent Outlook Updates Primarily Drive Model Revisions

Our view: We have revised our company models to reflect our recent outlook for the companies,

updated guidance from investor conferences, updated preferred dividend payments and Form 10-Q

data. The "Key Drivers of Earnings Revisions" (below) were gleaned from management commentaries

at investor conferences in the 2Q26. Please see page two for a summary of price targets and ratings and

see each company page for earnings revisions.

Key Drivers of Earnings RevisionsEQUITY

• Stronger Capital Markets – The banks that have capital markets businesses all guided to stronger than

our expected growth in investment banking and markets revenues.

• Loan Growth – Better than our expected loan growth was cited by a number of banks, led by stronger

C&I (commercial & industrial) loan demand.

• Net Interest Income Growth – Stronger loan growth is expected to lead to better than expected or to

“higher end of the guidance range” growth in net interest income.

• Benign Credit Environment – Nearly all the banks commented on the resiliency of credit. Any

increases in loan loss provisions will likely be driven by loan growth rather than a structural weakness

in credit, in our view.

• Operating Expense Growth – We believe, incentive-based compensation and transaction (primarily

in the Markets business) related expenses will lead to higher operating expense growth for selected

banks.

Priced as of prior trading day's market close, EST (unless otherwise noted).