Sign in

    Erika Najarian • UBS

    Erika Najarian's questions to Capital One Financial Corp (COF) leadership

    Erika Najarian's questions to Capital One Financial Corp (COF) leadership • Q2 2025

    Question

    Erika Najarian of UBS Group AG pressed for a timeline on optimizing the company's capital level from the current 14% CET1. She also sought to reconcile the commentary on higher costs and investments with the assertion that pro-forma EPS power remains consistent with initial deal estimates.

    Answer

    CFO Andrew Young reiterated that a timeline for capital optimization is pending a full analysis of Discover's data. Richard Fairbank, Founder, Chairman & CEO, clarified that while individual line items have moved since the deal announcement, the net drift has been favorable. This, combined with growing opportunities, supports the view that the ultimate earnings power will be similar to original estimates.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to KeyCorp (KEY) leadership

    Erika Najarian's questions to KeyCorp (KEY) leadership • Q2 2025

    Question

    Erika Najarian from UBS Group sought clarification on the full-year loan growth guidance, noting that the 2% target for period-end loans was already met. She also asked about the plan for deploying excess cash and the balance between deposit pricing and growth in the second half.

    Answer

    CFO Clark H. I. Khayat clarified that the loan growth guidance accounts for expected runoff in the residential and commercial real estate portfolios offsetting C&I growth. He stated that KeyCorp would likely reduce its excess cash position if market conditions remain constructive and would take a more "balanced approach" to deposit growth versus pricing in the second half of the year.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to KeyCorp (KEY) leadership • Q4 2024

    Question

    Erika Najarian from UBS Group asked for the deposit beta assumption within the 20% NII growth guidance and questioned the appetite for more aggressive talent acquisition and growth investments, given KeyCorp's strong capital position.

    Answer

    CFO Clark H. I. Khayat stated they expect a cumulative deposit beta in the mid-to-high 40s, approaching 50% during 2025. CEO Christopher M. Gorman affirmed they will 'absolutely' continue to invest aggressively, citing plans to grow the investment banking platform by 10%, hire more wealth advisors, modernize technology, and pursue 'bolt-on acquisitions' in adjacent industry verticals.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Synchrony Financial (SYF) leadership

    Erika Najarian's questions to Synchrony Financial (SYF) leadership • Q2 2025

    Question

    Erika Najarian sought clarification on the future cadence of loan growth, asking if the company is now past the impact of its previous credit tightening actions, and also asked about the permanence of recent APR increases.

    Answer

    EVP and CFO Brian Wenzel confirmed that as of H2 2025, Synchrony has lapped its prior credit tightening actions, and any future loosening would provide a tailwind for 2026 growth, complemented by the Walmart launch. Regarding the pricing changes (PPPCs), Wenzel explained their impact builds over time, with about 50% of balances affected by Q2 and rising to ~75% next year, which will continue to lift the loan portfolio's yield.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Synchrony Financial (SYF) leadership • Q4 2024

    Question

    Erika Najarian posed a multi-part question on the growth trajectory, asking for an unpacking of spending behavior in Synchrony's specific consumer cohort and questioning whether the high APRs from the PPPCs could disincentivize growth, even if they are accretive to returns.

    Answer

    President and CEO Brian Doubles noted that consumers are being disciplined, with a pullback seen in lower-income cohorts, and that the company is willing to sacrifice some short-term growth for better credit outcomes. EVP and CFO Brian Wenzel provided key data, stating that test-versus-control groups for the PPPCs show no significant difference in purchase volume or attrition. He argued the product's overall value proposition, including discounts, supports the pricing structure, suggesting the growth slowdown is not driven by the PPPCs.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Wells Fargo & Co (WFC) leadership

    Erika Najarian's questions to Wells Fargo & Co (WFC) leadership • Q2 2025

    Question

    Erika Najarian of UBS Group asked for more detail on capital planning, specifically whether the bank intends to maintain its current management buffer over the new, lower minimum CET1 requirement, which would imply a target of around 10%.

    Answer

    CEO Charles Scharf reiterated that they will wait for more regulatory clarity from the Federal Reserve on CCAR and capital rules before committing to a new, definitive capital target. He emphasized that while the direction is lower, they want to avoid setting a 'moving target.' CFO Michael Santomassimo added that the company has significant excess capital and a history of returning it to shareholders when appropriate.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Wells Fargo & Co (WFC) leadership • Q2 2025

    Question

    Erika Najarian of UBS Group sought more detail on future capital levels, asking if the company would maintain its current buffer over the new, lower CET1 minimum of 8.5% and how management is thinking about a sustainable capital target amid regulatory flux.

    Answer

    CEO Charles Scharf responded that while the direction for capital requirements is lower, the company wants to wait for more transparency from the Fed on CCAR and capital rules before setting a definitive new target. He emphasized they want to avoid a moving target. CFO Michael Santomassimo added that the company has significant excess capital and flexibility to deploy it to support clients and return it to shareholders, as demonstrated over the past five years.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Wells Fargo & Co (WFC) leadership • Q1 2025

    Question

    Erika Najarian followed up on the net interest income (NII) outlook, asking if the trajectory of a flattish first half and a second-half ramp still holds, and questioned the impact of the trading NII swing and recent securities repositioning.

    Answer

    CFO Mike Santomassimo confirmed the NII trajectory expectation is 'pretty similar,' with a flattish start and more loan growth expected in the second half. He noted the incremental securities repositioning was relatively small. He declined to provide specific detail on trading NII due to rate volatility but reminded listeners that swings in trading NII are often offset by changes in fee revenue, making it largely revenue-neutral.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Wells Fargo & Co (WFC) leadership • Q4 2024

    Question

    Erika Najarian of UBS questioned the medium-term 15% ROE target, suggesting it might be conservative given the nearly 13.5% achieved in 2024, future profitability improvements in card and home lending, and excess capital. She asked about the 'true natural return' of the business beyond the remediation story.

    Answer

    CEO Charlie Scharf responded that while they compare each business to the best performers, the company's focus is on achieving the 15% target first and not getting ahead of themselves. He emphasized that remaining consent orders are still a constraint and that they will address aspirations beyond 15% in due time, after making more progress.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Wells Fargo & Co (WFC) leadership • Q3 2024

    Question

    Erika Najarian asked about the procedural steps following the submission of the third-party review to the Federal Reserve related to the asset cap, and about the expected pace of share buybacks.

    Answer

    CEO Charlie Scharf outlined the general consent order process, which involves submitting a plan, receiving feedback, execution, and a final regulatory review, without providing specific timing. CFO Michael Santomassimo stated that while there is no quarterly buyback guidance, the bank has significant excess capital (150 bps above its new minimum) and will determine the pace each quarter based on market conditions and client needs.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to American Express Co (AXP) leadership

    Erika Najarian's questions to American Express Co (AXP) leadership • Q2 2025

    Question

    Erika Najarian of UBS Group raised a potential 'bear case,' asking how American Express can sustain its 8-10% revenue growth target given some spending slowdowns and what she described as fiercer competition for its core client base.

    Answer

    Chairman and CEO Stephen Squeri countered that the competitive intensity is not new and that the company's consistent performance is driven by a deep focus on customer needs, superior service, and continuous innovation across its global product portfolio. He emphasized that Amex is a much larger company now than when the targets were set and will continue to invest to deliver on its commitments and provide shareholder returns.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to American Express Co (AXP) leadership • Q4 2024

    Question

    Erika Najarian (identified as L. Erika Penala) inquired about the drivers of 2025 billings strength, asking for the expected split between new card growth and higher spend per account, given the planned modest increase in marketing.

    Answer

    CFO Christophe Le Caillec (identified as Robert Napoli) explained that quarterly new card acquisition (NCA) can be lumpy and isn't always aligned with marketing spend in the same period. He stated that billings growth comes from new customers, organic growth from tenured members, and attrition. He noted attrition is stable and low, making organic growth the most significant variable, which was stronger in Q4. He estimated new customers contribute about 7% to billings growth.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Citizens Financial Group Inc (CFG) leadership

    Erika Najarian's questions to Citizens Financial Group Inc (CFG) leadership • Q2 2025

    Question

    Erika Najarian from UBS asked about the strategy for the liability side of the balance sheet for the second half of the year, specifically how the bank will balance funding loan growth against optimizing its deposit mix. She also sought commentary on capital requirements for regional banks in light of potential changes to Basel III Endgame and evolving views from ratings agencies.

    Answer

    CFO John Woods stated that the bank expects a stable to improving deposit mix, driven by strong low-cost deposit growth from the private bank and core retail franchise, which will support loan growth. Head of Consumer Banking Brendan Coughlin added that retail deposits are outperforming peers, allowing for the release of higher-cost funds. On capital, Chairman & CEO Bruce Van Saun noted that while regulatory requirements for larger banks may be easing, rating agencies still want to see sustained profitability and resolution of CRE concerns among regionals. He affirmed CFG will continue to run with a conservative capital position, viewing a fortress balance sheet as a strategic advantage.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Citizens Financial Group Inc (CFG) leadership • Q1 2025

    Question

    Erika Najarian sought confirmation on the full-year Net Interest Income (NII) growth outlook of 3% to 5%. She also asked for the unemployment rate assumption embedded in the credit reserve and the offsetting dynamics from the noncore portfolio runoff.

    Answer

    CFO John Woods confirmed the 3% to 5% NII growth outlook remains appropriate, supported by strong NIM trends. Regarding reserves, he explained that while the baseline scenario uses a 5.1% unemployment rate, more severe assumptions are applied to portfolios like CRE, resulting in a higher weighted-average assumption that already bakes in a mild recession. CEO Bruce Van Saun and Head of Consumer Banking Brendan Coughlin added that the runoff of noncore assets is being replaced by extremely high-quality, zero-delinquency loans from the growing Private Bank, improving the overall portfolio mix.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Citizens Financial Group Inc (CFG) leadership • Q3 2024

    Question

    Erika Najarian asked for an update on the notional value of receive-fixed swaps, the accounting for their recent termination, and the number of rate cuts assumed in the 4Q '25 NIM target of 3%. She also followed up on the assumed deposit beta for Q4.

    Answer

    CFO John Woods confirmed the opportunistic termination of $4 billion in short-dated swaps in Q3 to lock in benefits amid aggressive market expectations for rate cuts. He explained the accounting involves amortizing the impact over the swaps' remaining life through May 2025. Woods stated the 3% NIM target for late 2025 is achievable across various rate environments due to the existing swap portfolio's protection. He specified that the Q4 outlook assumes a deposit beta of approximately 40%.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Fifth Third Bancorp (FITB) leadership

    Erika Najarian's questions to Fifth Third Bancorp (FITB) leadership • Q2 2025

    Question

    Erika Najarian asked if the loan growth mix would shift in the second half, given soft commercial and strong consumer trends, and questioned the deposit strategy for the remainder of the year.

    Answer

    CFO Bryan Preston projected balanced loan growth for the second half, noting that a 50% increase in the commercial pipeline should supplement continued consumer momentum. On deposits, he said the focus is on core deposit funding and cost stabilization, reflecting a 'higher for longer' interest rate view, with a priority on balanced growth that is constructive for NII and NIM.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Fifth Third Bancorp (FITB) leadership • Q3 2024

    Question

    Erika Najarian asked for the expected cadence of deposit beta repricing over the next several quarters and the bank's view on a 'natural' deposit spread in a normalized rate environment. She also inquired about 2025 expense growth expectations and any major projects being revisited.

    Answer

    CFO Bryan Preston projected that full deposit beta realization would take about two quarters, driven by CD maturities, with 75% of the portfolio maturing by Q1 2025. He estimated a potential normalized deposit spread of 150-200 bps but stressed the ultimate focus is on total NII. CEO Tim Spence addressed expenses, confirming the bank has not delayed key investments and funds them through ongoing efficiencies. He suggested the historical long-term expense growth rate of around 3% is a reasonable baseline for 2025.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to US Bancorp (USB) leadership

    Erika Najarian's questions to US Bancorp (USB) leadership • Q2 2025

    Question

    Erika Najarian asked for the LCR ratio and questioned the reason for what she perceived as outsized commercial deposit pricing pressure. She also asked if the focus on expense management was a short-term necessity or a long-term strategy, and if the market was underappreciating the company's modernization efforts.

    Answer

    Vice Chair & CFO John Stern confirmed the bank has a healthy LCR and no liquidity concerns, stating deposit actions were strategic. President & CEO Gunjan Kedia clarified that the intense focus on expenses is a short-term priority to fuel investment and rebuild operating leverage post-acquisition. She stressed that the company has significant organic growth opportunities and that productivity from past tech investments is now being 'harvested' to support future growth, suggesting the franchise's trajectory is very strong.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to US Bancorp (USB) leadership • Q4 2024

    Question

    Erika Najarian questioned the factors influencing the pacing of share buybacks, noting the modest start. She also asked if the guidance for 200+ basis points of positive operating leverage is a firm baseline that can be delivered regardless of the revenue environment, given the company's expense flexibility.

    Answer

    CFO John Stern explained that the pace of buybacks is a balance between accreting capital towards the future Category II requirement of ~10% and deploying capital if loan growth remains soft. CEO Andy Cecere confirmed that the 200+ basis points of positive operating leverage is a baseline commitment. John Stern then elaborated on the company's expense levers, including real estate optimization, procurement savings, organizational simplification, and automation, which provide confidence in hitting that target.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Goldman Sachs Group Inc (GS) leadership

    Erika Najarian's questions to Goldman Sachs Group Inc (GS) leadership • Q2 2025

    Question

    Erika Najarian asked what Goldman Sachs needs to see from a regulatory perspective to become comfortable operating with a smaller capital buffer, closer to its 50-100 basis point target.

    Answer

    CFO Denis Coleman emphasized the need for more transparency from regulators on stress test models. Chairman & CEO David Solomon elaborated that more clarity is required on three key regulatory areas: the enhanced SLR, G-SIB calibration, and the overall stress testing process. He expressed an expectation that more clarity on these fronts will emerge in the coming 6 to 12 months, which would allow the firm to manage its buffer more precisely.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Goldman Sachs Group Inc (GS) leadership • Q1 2025

    Question

    Erika Najarian asked how Goldman Sachs would allocate capital if regulatory changes redefine 'excess capital' for the industry, and how U.S. policy volatility is impacting the firm's internationally sourced revenues.

    Answer

    CEO David Solomon outlined the capital waterfall: client support, alternatives platform growth, and shareholder returns. He stated that while international clients dislike uncertainty, he sees no decline in client interest in dealing with Goldman Sachs globally and believes it's too early to determine any marginal effect.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Bank of America Corp (BAC) leadership

    Erika Najarian's questions to Bank of America Corp (BAC) leadership • Q2 2025

    Question

    Erika Najarian of UBS Group inquired about the appropriate capital buffer in light of potential deregulation, which businesses are being prioritized for capital, and whether the Q2 share buyback level is indicative of future appetite.

    Answer

    CEO Brian Moynihan stated the target capital buffer is around 50 basis points above the minimum and that the bank will work to deploy excess capital, though G-SIB calibration remains a critical factor. He confirmed the Q2 buyback level reflects their strong appetite and noted that while all businesses can grow, a discrete decision was made to allocate more capital to the Global Markets business to support its expansion.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Bank of America Corp (BAC) leadership • Q4 2024

    Question

    Erika Najarian sought confirmation of the 4Q 2025 exit net interest margin (NIM) of 2.1% and asked about the path to the previously mentioned normalized NIM of 2.3%, particularly in a higher interest rate environment.

    Answer

    CEO Brian Moynihan confirmed the 2.1% exit rate comment. CFO Alastair Borthwick added that deposit pricing is disciplined, with the rotation from noninterest-bearing to interest-bearing accounts slowing significantly. Moynihan stated that a higher-for-longer Fed funds rate would accelerate the path to the normalized 2.3% NIM, driven by the bank's large, low-cost deposit base.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Bank of America Corp (BAC) leadership • Q3 2024

    Question

    Erika Najarian asked about the sensitivity of floating-rate loans to rate changes on the way down versus up, considering hedges. She also inquired about deposit beta assumptions on the way down and the bank's natural deposit cost in a normalized rate environment.

    Answer

    CFO Alastair Borthwick said it is fair to assume similar rate sensitivity on the way down, but noted cushions from asset repricing and cash flow swaps that will benefit commercial yields in late 2025. CEO Brian Moynihan added that the current spread between Fed Funds and their interest-bearing deposit cost is ~100 bps wider than in the 2019 cycle, indicating fundamentally higher earnings power in a normalized rate environment.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Citigroup Inc (C) leadership

    Erika Najarian's questions to Citigroup Inc (C) leadership • Q2 2025

    Question

    Erika Najarian of UBS Group asked about Citigroup's capital management strategy, questioning the 13.1% year-end CET1 target and the timing for reassessing the 100 basis point management buffer. She also inquired about the potential for expense reductions following the eventual lifting of the 2020 OCC consent order.

    Answer

    CFO Mark Mason stated that the year-end CET1 target depends on final clarity regarding the SCB framework, but the firm is pulling forward buybacks while uncertainty remains. He noted the management buffer is reviewed regularly based on RWA volatility and regulatory tone. Regarding the consent order, Mason and CEO Jane Fraser clarified that expenses will start decreasing as transformation work is completed and validated, which occurs before the orders are formally lifted, with a notable decline expected in 2026.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Citigroup Inc (C) leadership • Q2 2025

    Question

    Erika Najarian from UBS inquired about the appropriateness of the 13.1% year-end capital target and the timing for re-evaluating the 100 basis point management buffer. She also asked about the potential for expense reductions upon the lifting of the 2020 OCC consent order.

    Answer

    CFO Mark Mason stated that the year-end capital target's relevance depends on final SCB rules, but the firm is pulling buybacks forward to return capital efficiently. He noted the management buffer is reviewed regularly based on volatility and regulatory tone. Both Mason and CEO Jane Fraser clarified that transformation-related expenses are expected to decline starting in 2026 as work is completed, a process that occurs before the consent orders are formally lifted.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Citigroup Inc (C) leadership • Q1 2025

    Question

    Erika Najarian followed up on buybacks, questioning the cautious pace given the stock's discount to tangible book and asking about any restrictions on moving capital from the bank subsidiary to the holding company. She also asked about global rate assumptions in the NII outlook.

    Answer

    CFO Mark Mason confirmed an acceleration in buybacks from $1.5B to $1.75B and a focus on opportunities to do more, but noted volatility in the SCB result warrants some caution. He stated there are no restrictions on the buyback program and multiple sources of funding for it. For global rates, he pointed to the firm's IRE analysis, which suggests a 100 bps move in non-U.S. dollar rates would have a $1 billion impact over 12 months, though he cautioned this is a static risk measure.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Citigroup Inc (C) leadership • Q4 2024

    Question

    Erika Najarian pressed for specific milestones Citigroup needs to see to accelerate its share buyback pace from the initial $1.5 billion per quarter. She also asked for context on the revised 2026 targets, suggesting it may simply take longer to achieve goals sustainably, and inquired about the expected impact of the Banamex IPO.

    Answer

    CFO Mark Mason clarified that the buyback pace is not constrained by consent orders but is managed toward their 13.1% CET1 target, with the upcoming CCAR stress test being an important factor for the second half of the year. CEO Jane Fraser confirmed the 2026 target is a 'waypoint' on a longer journey to improve returns sustainably. Regarding Banamex, she noted the IPO timing depends on market conditions and regulatory approvals and could extend into 2026.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Citigroup Inc (C) leadership • Q3 2024

    Question

    Erika Najarian requested a progress update on the Banamex separation and IPO timeline, and asked about interest rate sensitivity, the impact of late fee rules, and core non-capital markets fee drivers.

    Answer

    CEO Jane Fraser stated the Banamex separation is expected to complete in Q4, with a plan to be IPO-ready by the end of 2025, contingent on market conditions. CFO Mark Mason clarified that the firm's interest rate sensitivity skews non-U.S. and highlighted strong, broad-based fee momentum in Services, Banking, and Wealth as key growth drivers.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Regions Financial Corp (RF) leadership

    Erika Najarian's questions to Regions Financial Corp (RF) leadership • Q1 2025

    Question

    Erika Najarian from UBS asked for the baseline and weighted average unemployment rate assumptions used for the credit loss reserve. She also inquired about the expected trajectory of the allowance for credit losses (ACL) given identified problem credits and macroeconomic uncertainty.

    Answer

    Executive David Turner stated the weighted average unemployment rate embedded in the allowance is in the high 4% range. He explained that as charge-offs from identified problem assets are realized, the ACL ratio of 1.81% should directionally trend down toward the Day 1 CECL level of 1.62% over time, assuming no further economic deterioration.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Regions Financial Corp (RF) leadership • Q4 2024

    Question

    Erika Najarian asked about the necessary conditions for noninterest-bearing deposit (DDA) growth to resume. She also inquired about the bank's priorities for fee income investments in 2025 and over the medium term.

    Answer

    Executive David Turner asserted that DDA growth is driven by execution—'boots on the ground'—in acquiring new customer operating accounts, rather than the rate environment. For fee income investments, he mentioned a continuous search for needed products and services, citing past acquisitions. While interested in areas like fixed income platforms or RIAs, he noted that current valuations are too high for potential deals.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Regions Financial Corp (RF) leadership • Q3 2024

    Question

    Erika Najarian asked for details on the cadence of deposit repricing over the next several quarters and the expected deposit spread at a neutral Fed funds rate. She also asked if expense growth should be calibrated relative to revenue to ensure positive operating leverage.

    Answer

    CFO David Turner stated that at a 3% Fed funds rate, total deposit costs would be in the 1% range. CEO John Turner confirmed a commitment to positive operating leverage in 2025, explaining that the level of investment is directly calibrated to revenue generation to create shareholder value.

    Ask Fintool Equity Research AI

    Erika Najarian's questions to Truist Financial Corp (TFC) leadership

    Erika Najarian's questions to Truist Financial Corp (TFC) leadership • Q3 2024

    Question

    Erika Najarian asked for a more detailed outlook on the net interest margin (NIM) trajectory into 2025, including day-count impacts, specifics on the interest rate swap book, and the rationale for a mid-teens ROTCE target when peers are aiming higher.

    Answer

    CFO Mike Maguire projected that NIM should stabilize in Q1 2025 and then expand, though NII dollars will face pressure from a lower day count. CEO Bill Rogers addressed the ROTCE target, explaining that Truist's capital position post-TIH sale provides a unique and powerful ability to grow its return profile faster than peers as that capital is strategically deployed.

    Ask Fintool Equity Research AI