Summary of PNC Financial Services Group Conference Call Company Overview - **Company**: PNC Financial Services Group (NYSE: PNC) - **Date**: February 10, 2026 - **Speaker**: Rob Reilly, CFO Key Points Industry Outlook - The banking sector's operating outlook for 2026 is constructive, supported by domestic economic growth and stabilized labor markets [4][5] - Geopolitical uncertainties have not significantly derailed loan activity, with strong pipelines and momentum continuing into 2026 [5][6] Loan Growth and Guidance - PNC expects loan growth of approximately 8% for 2026, including contributions from the FirstBank acquisition [6] - Standalone loan growth is expected to be around 4%, with commercial loan growth anticipated to exceed expectations due to strong pipelines and capital expenditure needs [10][12] - The commercial real estate (CRE) sector is expected to stabilize by the end of Q1 2026, which will positively impact loan growth [14][17] Market Dynamics - PNC's growth markets, particularly Texas, California, and Florida, are driving loan growth, with onshoring manufacturing contributing to this trend [20][22] - The bank plans to open 300 new branches over the next five years, aiming to increase market penetration and consumer deposits [25][31] Financial Performance - PNC anticipates a 14% growth in net interest income (NII) for 2026, driven by fixed-rate asset repricing and loan growth [42][44] - The bank's net interest margin is expected to exceed 3% in the latter half of 2026, with continued expansion anticipated [50][51] Fee Income and Capital Markets - Capital markets fees grew by 18% in 2025, with strong pipelines for 2026 expected to yield high single-digit growth [53][54] - PNC's asset management business is performing well, with nearly 10% growth attributed to affluent new markets [56] Regulatory Environment - The Basel III Endgame is a significant focus, with potential reductions in risk-weighted assets (RWA) that could enhance capital efficiency [86][87] - Compliance costs and resource allocation are being optimized to improve operational efficiency [87] Technology and AI Investments - PNC is targeting $1.5 billion in addressable spend reductions through AI applications across various operational areas, including compliance and retail operations [100][101] - The bank is enhancing its technology infrastructure to support national operations and improve customer service [34][100] Capital Return Strategy - PNC plans to continue share buybacks, maintaining capital flexibility while monitoring tangible book value [109] - The bank is cautious about future M&A activity, focusing on quality acquisitions in the $10 billion to $100 billion range, while avoiding larger banks [112][113] Conclusion - PNC Financial Services Group is positioned for growth in 2026, with a strong focus on loan growth, market expansion, and operational efficiency. The bank's strategic investments in technology and regulatory compliance are expected to enhance its competitive position in the banking sector.

Seventeen years onfrom the global financial crisis, regulators are cutting redtape for their banks in a ‍bid to keep lenders competitive andstimulate their economies.The Trump administration is leading the charge, including withmeasures that will reduce the amount of capital lenders need toset aside. Lowering capital requirements ​is worrying someobservers that the U.S. has triggered a global rowback fromregulations designed to keep financial systems safer, just aschatter about ‌market bubbles and financia ...

Core Viewpoint - The Federal Reserve is set to introduce a more industry-friendly version of the "Basel III Endgame" capital rules by the end of 2025 or early 2026, responding to banking industry concerns about previous proposals that significantly increased capital requirements [1][2][3]. Group 1: Regulatory Changes - The Federal Reserve, along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, is actively working on a re-proposal of capital rules that align with global standards for risk measurement and capital assignment [2]. - The previous attempt under the Biden administration to increase capital requirements for large banks faced strong opposition and was ultimately abandoned [3]. - Current regulators, appointed by President Trump, are aiming to create a rule that addresses industry concerns and is expected to have a lighter capital impact on banks [4]. Group 2: Reconsideration of Capital Requirements - Regulators are considering "rightsizing" capital requirements imposed on larger banks following the 2008 financial crisis, suggesting that the post-crisis framework needs reevaluation [4]. - The effort led by the Fed Vice Chair for Supervision is framed as a reconsideration of existing requirements to enhance their effectiveness and efficiency, rather than a weakening of regulations [5]. - The intention is not to reduce the number of requirements or capital levels but to ensure that all regulations work cohesively and transparently [5][6].