The PNC Financial Services Group (PNC) Barclays 23rd Annual Global Financial Services Conference summary

Strategic initiatives and acquisitions

• Announced acquisition of FirstBank, citing strong branch network, low-cost deposits, and cross-sell potential in Colorado.

• Acquisition driven by unique opportunity, not a shift toward larger deals; organic growth remains a priority.

• M&A activity in the sector is increasing, but future deals will be opportunistic and focused on strategic fit.

• Recent acquisition expected to have a minimal capital impact, about 10 basis points on CET1.

• Buybacks and dividends will continue, with potential for increased buybacks in the near term.

Market and economic outlook

• U.S. economic growth expected at 1% this year and 1.5% next year, with low unemployment but limited churn.

• Consumer spending remains strong, with record debit and credit card activity.

• Deposit growth is stable and above pre-COVID levels, with no significant signs of consumer stress.

• No changes to previously provided financial outlook; performance is trending toward the upper end of guidance.

Loan, deposit, and fee growth

• Average loans up 1%, with growth driven by new production rather than broader economic activity.

• Southeast and Southwest markets show outsized growth, with continued investment and opportunity.

• Deposit growth led by corporate accounts; deposit costs rising slightly due to mix shift.

• Net interest income (NAI) expected to grow 7% this year, with similar growth trajectory into 2026 if yield curve holds.

• Net interest margin (NIM) projected to exceed 3% next year, supported by a steep yield curve.

• Fee income guidance trimmed to 4%-5% growth, with capital markets and M&A activity rebounding.