The PNC Financial Services Group (PNC) 2026 RBC Capital Markets Global Financial Institutions Conference summary

Commercial and industrial (C&I) and real estate lending trends

• Achieved about 9% C&I loan growth in Q4, with broad-based activity and strong momentum expected to continue into 2026.

• Real estate lending faced headwinds, but is at the tail end of reduction, with inflection and growth anticipated in Q2, especially in multifamily, retail, industrial, and select office markets.

• Real estate pipeline is up 300%, with opportunities in construction loans, fixed-rate mortgages, and tax credit investing.

• Clients have become more resilient post-pandemic, improving efficiency and supply chain management.

Deposit growth and liquidity management

• Corporate deposit growth was 8% last year, outpacing loan growth, achieved without increasing rate paid.

• Deposit beta remained around 85%, with continued discipline expected.

• Clients are generally more efficient post-pandemic, with some maintaining higher balances due to market uncertainty.

Software lending, AI risk, and credit management

• $5.3 billion exposure in recurring revenue software lending, managed with active oversight and strong covenants.

• Focus on lending to firms with strong business models, proprietary data, and AI integration.

• No significant credit concerns outside of monitored sectors; ongoing attention to energy, transportation, and consumer impacts from macro volatility.

• Underwriting remains disciplined, with no major changes due to AI or unemployment concerns.