The PNC Financial Services Group (PNC) investor relations material

Leadership and strategic priorities

• New president brings extensive experience in advising banks and scaling capital markets businesses, with a focus on client-centric and local approaches for growth.

• Top priorities include deepening client relationships, especially in underpenetrated areas like cards and international payments, and expanding sponsor and treasury management services.

• Plans to double client penetration in retail cards and enhance international payment capabilities, particularly in Europe.

• Branch expansion targets 7% market share in high-growth markets, aiming for exponential gains and improved marketing effectiveness.

• Integration of FirstBank exceeded expectations, accelerating growth in Colorado and leveraging new product offerings.

Economic and market outlook

• Economic environment remains robust, with strong consumer spending and balance sheets up 20% post-inflation since 2019.

• Broad-based lending demand persists, with commercial real estate inflecting to growth after years of decline.

• Consumer delinquencies are declining, and commercial credit quality is strong, with no significant sectoral risks identified.

• AI-related capital expenditures and data center infrastructure are emerging themes, with selective participation in high-quality credits.

Financial performance and guidance

• Full-year and third-quarter guidance remains unchanged, with strong year-to-date performance and expectations for continued growth.

• Loan growth was strong in the first half, expected to moderate but remain above historical averages, especially in commercial segments.

• Deposit growth outpaces loans in Q3, driven by commercial deposits; rate paid expected to rise slightly due to mix.

• Net interest margin (NIM) expected to exceed 3% by year-end, with over 15% net interest income (NII) growth projected.

• ROTCE targeted at 18% by year-end, with high-return businesses supporting above-industry returns.