U.S. Large Cap Banks & Consumer Finance: Post-callback takeaways: TFC, FITB, RF

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U.S. Large Cap Banks & Consumer Finance: Post-callback takeaways: TFC, FITB, RF

Global Research

20 July 2026ab

U.S. Large Cap Banks & Consumer Finance Equities

AmericasPost-callback takeaways: TFC, FITB, RF

Financial

Erika Najarian

TFC: Consensus clean-up Analyst

At the time of our catch-up call with the company on Friday, consensus had an exit rate erika.najarian@ubs.com

NIM of 3.08% in 4Q26. While TFC does see expansion in 3Q and 4Q from the 2Q +1-212-713 2491

reported level of 2.98%, the Street exit rate for 4Q26 is likely too high, and "3-teens" Zachary Westerlind

NIM in '27 is likely off the table. The company noted that the mix of deposit growth, Associate Analyst

particularly the challenges in driving DDA growth, is behind the NIM adjustment. zachary.westerlind@ubs.com

Further, TFC noted that it funded 50% of its loan growth with wholesale funding last +1-212-713 2404

year, and that its ROTCE focus for '26 and beyond is behooving the company to match Chintan Prakash

loan growth closely with deposit growth. On this note, while the company is still looking Associate Analyst

to grow Sheffield (power sports), TFC is de-emphasizing both prime (mostly here) and chintan.prakash@ubs.com

nonprime auto, and has completely ceased originating its $4bn marine/RV book. On +1-212-713 3061

fees, investment banking pipelines are up considerably YoY, and the company is tracking Charles Brennan

>20% for fee income YoY in '26. Wealth management should also benefit in 2H from Associate Analyst

market tailwinds. To note, there seems to be upward pressure to consensus EPS of charles.brennan@ubs.com

$4.50, with Street NII biased lower, fees biased higher and the tax rate biased lower. We +1-212-713 2227

will host CFO Mike Maguire at our Financial Leaders conference in Kohler, WI on