>U.S. Financials – Making Progress (CITI)

Larger Banks Outperforming Regionals

■ Most large banks profitable, regional banks struggled in Q2 09

■ Larger banks benefiting from capital markets and mortgage refi “boomlet”

■ Regionals under pressure because of commercial real estate, middlemarket loans

■ Liquidity and capital issues are off the table for most large banks

■ Some signs of moderation in NPA growth

To see full report: U.S. FINANCIALS