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organic and M&A driven growth opportunities during the next downturn. That said, management noted that it was very likely that potential pro-growth measures taken by the incoming Trump administration could push out any downturn, as in the short run the economy would witness stronger growth. Chart 36: How do you view fundamentals for multifamily lending in 2017? 60% 50% 50% 40% 30% 20% 10% 0% Softening Softening Softening | Someconcern, but No concern fundamentals fundamentals fundamentals only in certain should leadto | shouldleadto § shouldlead to —_—sregions and at slower financing worsening credit slower financing certain rental price activity next year metrics activing and points worsening credit metrics Source: BofA Merrill Lynch Global Research Regions Financial (RF), B-2-7, Neutral Regions harnessing consumer to drive growth: Scott Peters, Senior EVP and Consumer Services Group Head, Logan Pichel, Consumer Lending Group Head, and Darren Smith, Treasurer, noted that Regions is utilizing its retail platform to drive growth. Management highlighted strength in mortgage, card, and online lending as avenues for growth. Importantly, management felt the US election has provided tailwinds for Regions revenue growth prospects heading into 2017. Combined with a better rate back drop, management sounded upbeat on its outlook. Chart 37: What do you think is the biggest impact of the GOP sweep to bank earnings? 40% 36% 30% 20% 10% 0% Interest rates rising Tax cuts and Lower regulatory No real impact/too faster across the curve infrastructure spending burden, driving higher early to tell due to stronger dollar — spurring growth, ROEs as excess therefore better loan capital —_ is returned demand back to shareholders or reinvested for growth Source: BofA Merrill Lynch Global Research = Multiple channels to drive loan growth: Management illustrated several avenues for loan growth. Within mortgage, Regions has 450 originators that generate 95% of its $6bn in annual originations. Management is seeking to increase its originations from home loan direct and telephone banking to 15-20% of total originations (currently 5% of originations) given the greater profitability from these channels. Card growth has also been strong with active credit card growth at 12% eat Bankof America 24 2016 Future of Financials Conference | 17 November 2016 Merrill Lynch HOUSE_OVERSIGHT_014338