The PNC Financial Services Group (PNC) Goldman Sachs 2024 U.S. Financial Services Conference summary

Macroeconomic outlook and industry sentiment

• Forecasts a strong 2025, with funds rate troughing at 3.75–4% due to sticky inflation and post-election dynamics.

• Labor market remains strong, supporting consumer spending and economic growth.

• Corporate sentiment is positive, with increased talk of M&A and investment amid greater regulatory certainty.

• No significant behavioral changes in corporates post-election; utilization rates slightly down but optimism persists.

Deposit and loan trends

• Deposit flows and pricing have outperformed expectations, with noninterest-bearing deposits up and better interest-bearing mix.

• C&I and wealth deposit betas are tracking similarly on the way down as on the way up; retail betas expected to be lower.

• Loan utilization continues to fall slightly; balances are flat as higher rates and uncertainty weigh on borrowing.

Asset repricing and net interest income (NII)

• 2025 NII performance is largely locked in, with more focus now on 2026–2027 asset repricing.

• $275 billion of 2% fixed-rate assets will reprice at 4%+, adding $4–$5 billion in run-rate over several years.

• Planning anticipates record NII for several years, barring unforeseen disruptions.