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 9% C&I loan growth in Q4, with broad-based momentum expected to continue into 2026.

• Real estate lending saw a planned reduction but is now at an inflection point, with pipelines up 300% and growth expected in multifamily, retail, industrial, and select office markets.

• Clients have become more resilient post-pandemic, adapting to volatility and supply chain challenges, which has supported business growth.

• Data center and adjacent sectors are contributing to incremental C&I activity, though exposure remains modest.

Deposit growth, liquidity, and risk management

• Corporate deposit growth reached 8% last year, outpacing loan growth, achieved without raising rates significantly.

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

• Deposit beta was about 85% and is expected to remain in the mid-80s.

Software lending, AI, and credit risk

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

• AI is closely monitored for risk and opportunity; underwriting emphasizes business model resilience and proprietary data.

• No material credit box changes due to AI or unemployment concerns; underwriting remains through-the-cycle.

• Broader credit risk focus includes energy, transportation, and consumer sectors amid global volatility.