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    Ken Usdin • Autonomous Research

    Ken Usdin's questions to Northern Trust Corp (NTRS) leadership

    Ken Usdin's questions to Northern Trust Corp (NTRS) leadership • Q2 2025

    Question

    Ken Usdin inquired about the drivers of strong asset servicing fees, particularly the impact of transaction activity, and followed up by asking when a definitive change in the organic growth rate for wealth management might be observable.

    Answer

    EVP & CFO David Fox confirmed that higher transaction volumes boosted asset servicing fees and noted that year-over-year growth comparisons are still impacted by two large client losses that have not yet been lapped. Chairman and CEO Michael O'Grady stated that while wealth management organic growth is positive, it will take time for initiatives like new leadership and talent acquisition in key markets to accelerate it to the target level.

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    Ken Usdin's questions to KeyCorp (KEY) leadership

    Ken Usdin's questions to KeyCorp (KEY) leadership • Q2 2025

    Question

    Ken Usdin from Autonomous Research noted that KeyCorp kept a higher-than-average 22% of originated capital on its balance sheet and asked about the strategy behind this. He also inquired about the dynamics of C&I line utilization, which saw only a modest increase.

    Answer

    Chairman & CEO Christopher M. Gorman explained the higher retention rate was a strategic decision to capitalize on market dislocation in April, allowing KeyCorp to hold attractively structured assets. Regarding line utilization, he expressed surprise it wasn't higher and noted it remains a key watchpoint. CFO Clark H. I. Khayat added that growth in total commitments also factored into the utilization percentage.

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    Ken Usdin's questions to Zions Bancorporation NA (ZION) leadership

    Ken Usdin's questions to Zions Bancorporation NA (ZION) leadership • Q2 2025

    Question

    Ken Usdin from Autonomous Research asked for an update on the liability remix, specifically the reduction in brokered deposits versus the use of FHLB advances. He also inquired about the front-book versus back-book dynamics for loan yields.

    Answer

    CFO Ryan Richards explained that the mix between brokered deposits and FHLB advances is a tactical decision based on relative funding costs, with a continued goal of reducing wholesale funding. He confirmed that new loans are being originated at higher yields (7.38%) than the existing portfolio (7.31%), driven by the repricing of consumer ARMs and commercial loans.

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    Ken Usdin's questions to Wells Fargo & Co (WFC) leadership

    Ken Usdin's questions to Wells Fargo & Co (WFC) leadership • Q2 2025

    Question

    Ken Usdin of Autonomous Research questioned whether Wells Fargo might accelerate its share buyback program given its significant capital position and modest loan growth outlook. He also asked how the removal of the asset cap would specifically translate into retail deposit growth.

    Answer

    CEO Charles Scharf responded that while they have increased capacity for buybacks, the primary focus is on using capital for organic growth. He emphasized that they now have a greater ability to pursue growth, dividends, and buybacks simultaneously. Regarding deposits, Scharf explained that with the constraint lifted, Wells Fargo can pursue more aggressive marketing, in-branch merchandising, and footprint expansion to drive growth in primary checking accounts and overall deposits.

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    Ken Usdin's questions to Wells Fargo & Co (WFC) leadership • Q2 2025

    Question

    Ken Usdin of Autonomous Research asked if Wells Fargo might increase its share buyback activity given its significant excess capital and modest near-term loan growth. He also questioned how the removal of past consent orders would manifest in retail deposit growth.

    Answer

    CEO Charles Scharf indicated that while the company has more capacity for buybacks, the priority is to use capital for organic growth. He stated they have the ability to do all things—grow, increase dividends, and buy back stock—to a greater extent than before. Regarding deposits, he explained that with constraints lifted, the bank can be more aggressive with marketing, merchandising, and footprint expansion to drive primary checking account growth, which they believe will lead to higher deposits.

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    Ken Usdin's questions to Regions Financial Corp (RF) leadership

    Ken Usdin's questions to Regions Financial Corp (RF) leadership • Q2 2025

    Question

    Ken Usdin asked about the long-term efficiency benefits and strategic implications of the core technology modernization and also inquired about the progress of hiring new commercial bankers.

    Answer

    President, CEO, & Chairman John Turner stated the new cloud-based core platform will provide a competitive advantage by enabling faster product delivery. Senior EVP & CFO David Turner added that while tech costs will rise, the investment should drive efficiency by allowing the company to manage headcount through attrition by leveraging AI and other tools. John Turner also confirmed they are on track with their plan to hire new bankers, expecting half to be hired by the end of Q3.

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    Ken Usdin's questions to Truist Financial Corp (TFC) leadership

    Ken Usdin's questions to Truist Financial Corp (TFC) leadership • Q2 2025

    Question

    Ken Usdin of Autonomous Research asked about the dynamics of deposit competition, the outlook for deposit costs, and the size of the non-qualified deferred compensation (NQDC) benefit within other income.

    Answer

    CFO Mike Maguire stated that the deposit franchise is performing well, with rational competition. He anticipates deposit betas will move toward 40% in Q3, even with a late-quarter rate cut. CEO William Rogers added that Truist's competitive positioning has improved, citing strong net new account growth. Maguire also clarified the NQDC benefit was approximately $25 million, which is offset by a corresponding increase in personnel expense, making it neutral to pre-provision net revenue (PPNR).

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    Ken Usdin's questions to Citizens Financial Group Inc (CFG) leadership

    Ken Usdin's questions to Citizens Financial Group Inc (CFG) leadership • Q2 2025

    Question

    Ken Usdin from Autonomous Research asked for more color on the capital markets pipeline, beyond the $30 million in fees expected in July, and inquired about the drivers behind the higher-than-usual "Other Income" line and its expected run rate.

    Answer

    Head of Commercial Banking Don McCree expressed optimism, noting a pent-up desire for M&A transactions and signs that the "new money engine" for financing is beginning to start after a period of refinancing activity. Chairman & CEO Bruce Van Saun highlighted the benefits of a diversified capital markets business, with strength in equity and syndicated loans offsetting weakness elsewhere. Regarding "Other Income," Van Saun explained that the line consists of many small, volatile items and that a few things simply "broke our way" in the quarter, suggesting it should be viewed on a full-year basis rather than as a new run rate.

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    Ken Usdin's questions to Citizens Financial Group Inc (CFG) leadership • Q1 2025

    Question

    Ken Usdin asked about the level of confidence in closing the record capital markets pipeline and questioned what offsets, such as compensation flexibility, are available if the expected fee revenue does not materialize.

    Answer

    CEO Bruce Van Saun expressed high confidence in the M&A pipeline, noting that no mandates have been lost, only delayed. He detailed several offsets to potential revenue shortfalls, including the diversity of fee streams like financing and hedging, a direct reduction in incentive compensation, and broader expense management through their ongoing efficiency programs. Head of Commercial Banking Don McCree added that deal delays are partly procedural and that financing markets remain attractive for their core mid-sized transactions.

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    Ken Usdin's questions to US Bancorp (USB) leadership

    Ken Usdin's questions to US Bancorp (USB) leadership • Q2 2025

    Question

    Ken Usdin asked about the dynamics of wholesale deposit costs and the outlook for deposit betas in a potential rate-cutting environment. He also sought clarity on the Q3 NII guidance range of $4.1B to $4.2B, asking about potential biases and key drivers.

    Answer

    Vice Chair & CFO John Stern noted that the deposit environment remains generally competitive. He affirmed that the bank's underlying assumptions for deposit betas in a rate-cutting cycle have not changed. Regarding the Q3 NII guidance, he stated there is no bias toward the high or low end of the range, with the outcome depending on the balance between deposit competition and positive momentum from loan growth and recent strategic actions.

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    Ken Usdin's questions to Bank of America Corp (BAC) leadership

    Ken Usdin's questions to Bank of America Corp (BAC) leadership • Q2 2025

    Question

    Ken Usdin from Autonomous Research asked for an update on the net interest income (NII) trajectory for the second half of the year, specifically questioning if the repricing benefits would be linear and seeking details on the cash flow hedge strategy.

    Answer

    CFO Alastair Borthwick confirmed that the benefits from fixed-rate asset and cash flow swap repricing should be thought of as linear through Q3 and Q4. He also stated that the strategy for cash flow hedges remains unchanged, involving the replacement of older, lower-coupon swaps with new, higher-coupon ones as they mature.

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    Ken Usdin's questions to Bank of America Corp (BAC) leadership • Q1 2025

    Question

    Ken Usdin asked for specifics on the fixed-rate asset repricing benefit to NII, including roll-off amounts and yield pickups for securities and mortgages. He also questioned how much further deposit costs could be reduced while still attracting growth.

    Answer

    CFO Alastair Borthwick detailed that HTM securities are rolling off at $8-9B per quarter with a 200-225 bps pickup, while new mortgages add a similar yield benefit. He stated the bank will continue its disciplined pricing approach, passing through rate cuts to commercial clients and managing CD and preferred deposit rates in consumer.

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    Ken Usdin's questions to State Street Corp (STT) leadership

    Ken Usdin's questions to State Street Corp (STT) leadership • Q2 2025

    Question

    Ken Usdin from Autonomous Research asked about the key drivers for the upgraded fee revenue guidance and sought clarification on the client contract rescoping that was listed as a notable item.

    Answer

    CEO Ronald O'Hanley explained that the improved outlook is primarily driven by strong organic business momentum, including a record backlog of new servicing fees to be installed, rather than just market appreciation. He and Interim CFO Mark Keating clarified that the client rescoping was a contained software contract issue with one client, does not impact servicing fees, and is not expected to recur.

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    Ken Usdin's questions to Citigroup Inc (C) leadership

    Ken Usdin's questions to Citigroup Inc (C) leadership • Q2 2025

    Question

    Ken Usdin of Autonomous Research asked for the drivers behind the quarter's allowance for credit loss (ACL) build and how 'caught up' the reserves are now. He also inquired about the softer fee revenue in Treasury and Trade Solutions (TTS) and the outlook for global client activity.

    Answer

    CFO Mark Mason explained the $600 million ACL build was not related to consumer credit but was driven by two main factors: establishing reserves for unremittable dividends in Russia and changes in the corporate portfolio from loan growth and idiosyncratic downgrades. CEO Jane Fraser clarified that underlying TTS fee drivers remain strong, with cross-border transaction values up 9%, and that the reported non-interest revenue was impacted by revenue sharing agreements, while total fee revenue grew 6%.

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    Ken Usdin's questions to Citigroup Inc (C) leadership • Q2 2025

    Question

    Ken Usdin from Autonomous Research questioned the drivers of the Q2 allowance for credit loss (ACL) build, given already strong reserve levels. He also asked about the softer fee revenue in Treasury and Trade Solutions (TTS) and underlying client engagement trends.

    Answer

    CFO Mark Mason clarified the ACL build was not related to consumer credit but was driven by transfer risk associated with unremittable client dividends in Russia and growth in the corporate loan portfolio. Regarding TTS, CEO Jane Fraser highlighted strong underlying client activity, with cross-border transaction values up 9%. Mason added that the underlying total fee revenue for the Services segment was up 6%, with the reported figure impacted by revenue sharing agreements.

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