The PNC Financial Services Group Q2 2025 Earnings Call Transcript

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Provided by Quartr
July 16, 2025

Key Takeaways

  • Positive Sentiment: Strong Q2 results with $1.6 billion net income ($3.85 EPS), 4% revenue growth, 10% PPNR jump and stable expenses driving positive operating leverage.
  • Positive Sentiment: Average loans rose 2% led by a 4% C&I increase and higher utilization, prompting a full-year guidance lift to +1% loan growth versus prior stable outlook.
  • Positive Sentiment: Strong capital position with a 10.5% CET1 ratio, a regulatory buffer at minimum 2.5%, lowest peer capital depletion, a 6% dividend raise to $1.70 and $335 million in share buybacks.
  • Positive Sentiment: Retail franchise momentum as consumer checking accounts grew 2% year-over-year (including 6% in the Southwest), record card spending and a $1.5 billion plan to open 200+ new branches.
  • Negative Sentiment: Noninterest income guidance trimmed slightly to 4–5% growth for 2025 from a prior 5% estimate, reflecting ongoing economic uncertainty affecting fee businesses.
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Earnings Conference Call
The PNC Financial Services Group Q2 2025
00:00 / 00:00

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Operator

Greetings. Welcome to the PNC Financial Services Group Second Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. A question and answer session will follow today's formal presentation. Please note that today's conference is being recorded.

Operator

At this time, it is now my pleasure to turn the conference over to Brian Executive Vice President and Director of Investor Relations. Mr. Gill, you may now begin.

Bryan Gill
Bryan Gill
EVP, Director - IR at The PNC Financial Services Group

Well, good morning. Welcome to today's conference call for the PNC Financial Services Group. I am Brian Gill, the Director of Investor Relations for PNC. And participating on this call are PNC's Chairman and CEO, Bill Demchak and Rob Riley, Executive Vice President and CFO. Today's presentation contains forward looking information.

Bryan Gill
Bryan Gill
EVP, Director - IR at The PNC Financial Services Group

Cautionary statements about this information as well as reconciliations of non GAAP measures are included in today's earnings release materials as well as our SEC filings and other investor materials. These are all available on our corporate website, pnc.com, under Investor Relations. These statements speak only as of 07/16/2025, and PNC undertakes no obligation to update them. Now I'd like to turn the call over to Bill.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Thank you, Brian, and good morning, everyone. As you've seen, we had a very strong second quarter fueled by our continued focus on driving growth. We accelerated new customer acquisition while deepening relationships with existing customers across our businesses. Loan growth increased even through an uncertain macro environment and we delivered on what we said we would. Our approach to growing our businesses remains consistent.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

The disciplined way we go to market bringing the best of P and C's people, products and services to customers across our expanded franchise has continued to produce results. We reported net income of $1,600,000,000 or $3.85 per diluted share. During the quarter loans grew 2% reflecting strong commercial loan growth fueled by the highest level production in 10 quarters. At the same time, we increased revenue 4% while holding non interest expenses stable, which resulted in another quarter of positive operating leverage and 10% PPNR growth. By now you've seen our stress test results.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

We maintained our regulatory minimum stress capital buffer of 2.5% and our start to trough capital depletion of 80 basis points was the lowest in our peer group. And as announced on July 3, our board increased our common dividend by $0.10 or 6% earlier this month. Rob is going to go through our performance in more detail, but first I'd like to share some of our business highlights from the quarter. As I mentioned we continue to see strong results from the execution of our national growth strategy. In C and IB we saw strong growth in loans and commitments and our credit trends continue to be very good.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Looking at fees, our capital markets and advisory trends remain solid and as expected treasury management continues to produce strong results. In retail banking we are accelerating customer growth. Our consumer checking accounts grew by 2% year over year including 6% growth in the Southwest. We also saw record debit and credit card activity this quarter and we remain on track with our $1,500,000,000 branch investment which we plan to open more than 200 branches in our expansion markets. Within our asset management business we had positive net flows and new client acquisition increased 16% linked quarter.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Inside of that growth in our expansion markets accelerated as discretionary assets under management grew nearly three times that of legacy markets albeit off a small base. In closing, we continue to demonstrate the strength of our national franchise and deliver on our objectives. We are poised to further capitalize on our growth potential and I remain very optimistic about our future. And finally, I just want to take a minute to thank our talented employees for their efforts, which are vital to all of our success and growth. With that, Rob will take you through the quarter. Rob?

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Thanks, Bill, and good morning, everyone. Our balance sheet is on Slide four and is presented on an average basis. For the linked quarter, loans of $323,000,000,000 increased $6,000,000,000 or 2%. Investment securities of $142,000,000,000 were stable. And our cash balance at the Federal Reserve was $31,000,000,000 a decrease of $3,000,000,000 Deposit balances increased $2,000,000,000 and averaged $423,000,000,000 and our borrowings remained stable at $65,000,000,000 At quarter end, AOCI was negative $4,700,000,000 an improvement of $555,000,000 or 11% compared with March 31.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Our tangible book value increased to approximately $104 per common share, which was a 4% increase linked quarter and a 17% increase compared to the same period a year ago. We remain well capitalized with an estimated CET1 ratio of 10.5% and an estimated CET1 ratio inclusive of AOCI to be 9.4% at quarter end. We continue to be well positioned with capital flexibility. During the quarter, we returned approximately $1,000,000,000 of capital to shareholders, which included $640,000,000 in common dividends and $335,000,000 of share repurchases. As Bill just mentioned, our Board recently approved a $0.10 increase to our quarterly cash dividend on common stock, raising the dividend to $1.7 per share.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

And we expect repurchases in the third quarter to be between 300,000,000 and $400,000,000 Our recent CCAR results underscore the strength of our balance sheet. And as previously announced, our current stress capital buffer remains at the regulatory minimum of 2.5%. Slide five shows our loans in more detail. During the second quarter, we delivered solid loan growth. Loan balances averaged $323,000,000,000 an increase of $6,000,000,000 or 2% compared to the first quarter.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

The growth was driven by C and I, which increased $7,000,000,000 or 4%, reflecting strong new production and higher utilization. Commercial real estate loans declined $1,000,000,000 or 4% as we continue to reduce certain exposures. And during the second quarter, our CRE office balances declined $500,000,000 Consumer loans were stable as growth in auto balances was offset by a decline in residential real estate loans. And our total loan yield of 5.7% was stable with the first quarter. Slide six details our investment securities and swap portfolios.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Average investment securities remained stable at $142,000,000,000 During the second quarter, our securities yield was 3.26%, an increase of nine basis basis points. And as of June 30, our duration was estimated to be three point four years. Our period end securities balances increased $5,000,000,000 or 3%, reflecting purchases, the majority of which were residential mortgage backed securities with an average yield of 5.4%. Regarding our swaps, active received fixed rate swaps totaled $40,000,000,000 on June 30, with a receive rate of 3.62%, which increased 13 basis points linked quarter. Forward starting swaps were $16,000,000,000 with a receive rate of 4.07%, and approximately 40% of these swaps will become active in 2025.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Slide seven covers our deposit balances in more detail. Average deposits increased $2,000,000,000 driven by growth in CDs, both brokered and direct, with the balance of consumer and commercial deposits remaining stable during the quarter. Non interest bearing balances increased $1,000,000,000 and remained at 22% of total deposits. And our rate paid on interest bearing deposits stayed essentially flat at 2.24%, up just one basis point. Turning to Slide eight, we highlight our income statement trends.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Comparing the second quarter to the first quarter, total revenue was up $2.00 $9,000,000 or 4% and noninterest expense was stable, which allowed us to deliver 4% positive operating leverage and 10% growth in PPNR. Provision was $254,000,000 reflecting the impact of changes in macroeconomic scenarios, tariff considerations and portfolio activity, including loan growth. Our effective tax rate was 18.8% and second quarter net income was $1,600,000,000 or $3.85 per share. In the first half of the year compared to the same time last year, we've demonstrated strong momentum across our franchise. Total revenue increased $557,000,000 or 5%, driven by higher net interest income and fee income growth.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Non interest expense increased $79,000,000 or 1%, reflecting increased business activity, technology investments and higher marketing spend. And net income grew $321,000,000 resulting in EPS growth of 14%. Turning to Slide nine, we detail our revenue trends. Second quarter revenue of 5,700,000,000 increased $2.00 $9,000,000 or 4% linked quarter. Net interest income of $3,600,000,000 increased $79,000,000 or 2%.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

The growth was driven by higher loan balances, the continued benefit of fixed rate asset repricing and one additional day in the quarter. And our net interest margin was 2.8%, an increase of two basis points. Non interest income increased $130,000,000 or 7%. Inside of that, fee income increased $55,000,000 or 3% linked quarter to $1,900,000,000 Looking at the details, Capital Markets and Advisory revenue increased $15,000,000 reflecting broad based increase in capital markets activity, much of which occurred late in the quarter. Card and cash management revenue grew $45,000,000 or 7%, driven by seasonally higher consumer spending and growth in treasury management.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Mortgage revenue decreased $6,000,000 or 4%, primarily due to lower residential mortgage servicing activity. And other non interest income of $212,000,000 increased $75,000,000 primarily reflecting Visa related activity and other valuation adjustments. Turning to Slide 10. Our expenses remained well controlled and were stable linked quarter. Seasonally higher marketing spend and continued technology investments were more than offset by our disciplined expense management.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

And as we previously stated, we have a goal to reduce costs by $350,000,000 in 2025 through our continuous improvement program. As you know, this program funds a significant portion of our ongoing business and technology investments, and we're on track to achieve our full year target. Our credit metrics are presented on Slide 11. Overall, credit quality remains strong with improvements in nonperforming loans, delinquencies and charge offs. Non performing loans of $2,100,000,000 were down $184,000,000 or 8%, driven by declines in both C and I and commercial real estate non performing loans.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Total delinquencies of $1,300,000,000 declined 128,000,000 or 9% compared with March 31, reflecting both lower consumer and commercial delinquencies. Net loan charge offs were $198,000,000 down $7,000,000 and represent a net charge off ratio of 25 basis points. And our allowance for credit losses totaled $5,300,000,000 or 1.62% of total loans at the end of the second quarter, which included tariff considerations. In summary, P and C reported a solid second quarter, and we're well positioned for the second half of twenty twenty five. Regarding our view of the overall economy, we're expecting continued economic growth in the second half of the year, resulting in real GDP growth of approximately 1.5% in 2025 and unemployment to increase to around 4.5% over the next twelve months.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

We expect the Fed to cut rates once in 2025 with a 25 basis point decrease in December. Considering our reported first half operating results, third quarter expectations and current economic forecasts, our full year 2025 guidance is as follows: For the full year 2025 compared to the full year 2024, we expect average loans to be up approximately 1% versus our prior guidance of stable. We expect full year net interest income to increase approximately 7%, up from our previous guidance of up 6% to 7%. We now expect noninterest income to be up approximately 4% to 5%, down slightly from our previous guidance of up 5%, primarily reflecting the continued level of heightened economic uncertainty. Taking the component pieces of revenue together, we continue to expect total revenue to be up approximately 6%.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

We continue to expect non interest expenses to be up approximately 1%. And we expect our effective tax rate to be approximately 19%. For the third quarter of twenty twenty five compared to the second quarter of twenty twenty five, we expect average loans to be up approximately 1%, net interest income to be approximately up 3%, fee income to be up between 34%, other non interest income to be in the range of $150,000,000 Taking the component pieces of revenue together, we expect total revenue to be up between 23%. We expect non interest expense to be up approximately 2%, and we expect third quarter net charge offs to be in the range of $275,000,000 to $300,000,000 And with that, Bill and I are ready to take your questions.

Operator

Thank you. We'll now be conducting a question and answer session. Thank you. You. And our first question today will be coming from the line of David George with Baird. Please proceed with your questions.

David George
Senior Research Analyst at Baird

Hey guys, good morning. Question on the pickup you had in loan growth in the quarter. A lot of it looks like it's coming from commercial. There's a pickup in line of credit utilization, but would like to get some color or context around that growth and how sustainable you think it might be? And then I've got a quick follow-up as well.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Yes, sure. Good morning, David. It's Rob. Yes, so loan growth was strong in the second quarter and it really was the combination of an uptick in utilization in part due to obviously some tariff related considerations. But importantly for us, on top of that was also new production in large part from our growth markets, which is simply the fruition of years of working toward that.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

So it really was a combination that drove those higher levels. When we look to the balance of the year, the balance of 2025, we don't have quite the same loan growth repeating. We do have some more loan growth than what we thought. So we raised, as you saw in our full year guidance, average loans from stable to up 1%.

David George
Senior Research Analyst at Baird

Okay. To that end, it's staying on NII between the pickup in loan growth, Rob and you added as you mentioned added to the securities portfolio towards the end of the quarter and your inherent positioning with asset repricing and swaps coming off, presumably, you continue to be in a pretty favorable NII position going into the back half and into next year. Just want to get a sense as to how you're thinking about the trajectory of NII in the back half and into '26?

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Yes, sure. So because of the items that you mentioned, we did up our guidance for the full year from up six percent to 7% to up 7% for NII. And the momentum will continue into 2026. We won't get into specific guidance, but we expect a similar and sustained trajectory.

David George
Senior Research Analyst at Baird

Sounds good. Thanks.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Sure.

Operator

The next question is from the line of Chris McGratty with KBW. Please proceed with your questions.

Christopher Mcgratty
MD & Head of U.S. Bank Research at Keefe, Bruyette & Woods (KBW)

Great. Good morning. Thank you. Bill, kind of a big picture question for you. It feels like we're in a really important spot for the industry given what's happening in Washington in the political environment and the deregulatory environment.

Christopher Mcgratty
MD & Head of U.S. Bank Research at Keefe, Bruyette & Woods (KBW)

I'm interested to hear your updated views of how this may play out for PNC. You've talked about the benefits, but also the frustration with scale over the years and also balancing with what is seemingly a little bit better organic growth outlook. Thank you.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Look, ignoring what's happening in D. C, we're on a good path. New markets and new clients are giving us an organic growth opportunity that we haven't seen in years. At the margin, you know, Washington comes in and out and regulations get easier and harder and we succeed in all of those environments. So we're in an environment today where the where regulation gives us a bit of a tailwind, which is a good thing.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

And, you know, you'll see that Yeah. Not just in some of the, like, you know, capital ratios and adjustments and Basel three endgame and so on and so forth. But also, I think through time and the amount of money we actually spend on, you know, what I'm just gonna call busy work. Oh, Rachel. Yeah.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Responding to regulatory things that that don't necessarily have a lot to do with core risk in the bank. But, you know, all of that, you know, helps at the margin against the backdrop of a company that's actually, growing clients and growing business at a pretty healthy clip. We feel pretty good about where we are.

Operator

Thank you. The next question is from the line of John Pancari with Evercore ISI. Please proceed with your question.

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

Good morning.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Good morning. Good morning, John.

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

Just wanted to get some additional color on your fee income outlook for the full year. Your fee trends came in pretty solidly in the second quarter. You cited the upside to capital markets and a little bit of upside in other, but you had nudged your fee guidance lower. It looks like the Street was already there, but you noted that lower just under the economic uncertainty. If you could maybe just elaborate what's keeping you from getting a little bit more confident there?

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

I know you said that you're seeing record pipelines in your capital markets business. So maybe can you just talk about the puts and takes there and the rationale in nudging that lower?

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Yes. Sure, John. So if we go back to our January expectations relative to total non interest income growth, we set up 5%. We've got a small revision to that downward. So we're now saying 4% to 5%.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

So that's a 1% decline on an 8,400,000,000.0 plus number, so pretty small. And we chalk that up to sort of the heightened uncertainty that emerged after January that we're all well aware of. And we've seen some soft spots in the first quarter with corporate spending activity, mortgages are touched less. And then as we discussed in a recent conference, private equity valuations, which is in other non interest income, have some headwinds relative to our expectations in January, but it's pretty small. And to your point, the major categories asset management is ahead of where we expected in January, capital markets is right on what we expected in January.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

So we think it's these are pretty good and they're obviously pretty resilient given everything that we've been through with the turbulence.

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

Got it. Okay. Thanks for that. And then just separately, we're hearing some of the banks citing somewhat higher or intensifying competitive pressure around loan pricing. A couple of banks are citing tighter spreads that's impacting some of their fixed asset loan pricing benefit.

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

Can you maybe talk about what you're seeing out there in terms of loan pricing, particularly as loan growth is accelerating? And I know your loan yields were flat this quarter. Is competition at all impacting that? Or is that really just the swap dynamics?

Robert Reilly
EVP & CFO at The PNC Financial Services Group

No, I think when you look at our spreads, our spreads are pretty consistent. So there's always competition. There's certainly no spread expansion, but we haven't seen a lot of contraction. If anything, we might have a little bit spread pressure just because our asset mix, our loan mix tends recently to be sort of in the higher credit quality, but nothing that's thrown us off our yields. But when rates are fairly steady, spreads are fairly steady, the yields are pretty steady. Competition seems pretty rational. So, not much change.

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

Okay, great. Thank you.

Operator

Next question is from the line of Scott Siefers with Piper Sandler. Please proceed with your question.

R. Scott Siefers
R. Scott Siefers
MD & Senior Research Analyst at Piper Sandler Companies

Good morning, Thanks for taking the question. Let's see, Rob, wanted to ask a little on the margin dynamics, excuse me. I think in the past you all have talked about the margin potentially expanding up toward like $2.90 by the end of the year. That's something you're still sort of pointing towards or hoping to achieve. I guess as I think of things, the asset repricing story is pretty it's pretty much become self evident at this point.

R. Scott Siefers
R. Scott Siefers
MD & Senior Research Analyst at Piper Sandler Companies

It's terrific. I would imagine deposit benefits just get tougher if the Fed isn't cutting as aggressively. I think you said you only have the one rate cut in December in your model. So maybe how you're thinking about that trajectory would be great, please?

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Sure. I think you summed it up well that nothing's changed. We're still tracking to that $2.90 range by the end of the year that I said on the first quarter earnings call.

R. Scott Siefers
R. Scott Siefers
MD & Senior Research Analyst at Piper Sandler Companies

Okay, perfect. Thank you. And then, I guess a small one. Any rationale behind the thought that third quarter charge offs would increase? I guess, it feels like there's been a couple quarters in a row where the expectation has turned out to be worse than the reality, which is a good thing.

R. Scott Siefers
R. Scott Siefers
MD & Senior Research Analyst at Piper Sandler Companies

But just curious if there's anything behind the thinking there?

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Yes, lower charge offs are definitely a better thing, Scott. Yes, charge offs have come in favorably year to date relative to our expectations. We did lower our guide, meaning improved. We've been running at estimating $300,000,000 a quarter. We've been doing closer to 200 So we lowered our guide to $275,000,000 to 300,000,000 because there is still this sort of pipeline of charge offs related to commercial real estate office that we know is going to pull through, all fully reserved.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

So not an economic impact, but at some point they will flow through. And we expect that to occur over the next several quarters.

R. Scott Siefers
R. Scott Siefers
MD & Senior Research Analyst at Piper Sandler Companies

Got you.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

But other than that, quality is very good.

R. Scott Siefers
R. Scott Siefers
MD & Senior Research Analyst at Piper Sandler Companies

Yes. No, it seems that way. So but appreciate the color. Thanks a lot, Rob.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Sure.

Operator

The next question comes from the line of Ebrahim Poonawala with Bank of America. Please proceed with your questions.

Ebrahim Poonawala
Ebrahim Poonawala
MD & Head - North American Banks Research at Bank of America Merrill Lynch

Hey, good morning.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Good morning.

Ebrahim Poonawala
Ebrahim Poonawala
MD & Head - North American Banks Research at Bank of America Merrill Lynch

I guess sorry if I missed this, Rob. Just talk to us how you're thinking about capital levels. I mean, we have a bunch of like regulatory changes sort of on the come.

Ebrahim Poonawala
Ebrahim Poonawala
MD & Head - North American Banks Research at Bank of America Merrill Lynch

But as we think about the right target CET1 capital for P and C in a world where banks triple your size are seeing requirements coming lower. How do you think about it? Like I was going back, there have been times when you operated with the 9.5% CET1. Just what the thought process is, even if you're not willing to sort of commit to a certain target today, would love to hear how you think about your capital relative to larger peers just as we think about just the relative competitive advantage versus disadvantage? Thanks.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Sure. Yes. Well, so hi, Ebrahim, it's Rob. So yes, so you saw we print CET1 to 10.5% with AOCI included 9.4 in our recent stress tests that require 7%. So we're in a healthy excess capital position.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

The short answer is, we think at the levels that we are right now with the rules still yet to be finalized, feels about right. We did up our share repurchases as a result in the second quarter and said that we're going to sustain that 300,000,000 to $400,000,000 of repurchases into the third quarter. Obviously, the highest and best use of our capital is for loans. We're pointing to and hopeful that we'll be able to use that capital towards that loan growth. But generally speaking, in terms of our capital levels, we feel like we're in the right place right now.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

We've got some flexibility. We've upped the share repurchases. We increased the dividend. So I think we're in a good spot.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

The only thing I'd add, you might have seen a comment letter that BPI put out about one of the rating which is the Yep. Binding constraint for the industry right now. And so we're all, you know, even in today's environment, higher than we need to be vis a vis regulatory rules. But we're not necessarily there vis a vis rating agency rules. So there's some pushback on that.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

And that applies to all of us, not just, you know, our size or smaller or the giant banks. It's one of the things we're all dealing with and we need to work our way through.

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

We've heard that. So thanks for mentioning that. And I guess just one follow-up, like on loan growth and capital markets, is momentum picking up as we think about just conversations with clients and all of these? I'm just trying to get a sense of is there upside to growth outlook for the back half into 2026? Should we be excited about that?

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

Or is it still early days yet? We're still watching tariffs closely. And like where do you kind of shake out between those two views?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

The one thing I will say on loan growth, because we've been terrible predicting As an industry.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

As an industry and and well, which is still yeah. We don't Which we're apart. We don't put a prediction out there. But as I've said before, if there is loan growth in the industry, we will participate in it and likely do better just given our efforts in the newer markets. The momentum is really good at the moment.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

But as we've seen, that can be disrupted pretty easily by the political environment and tariffs.

John Pancari
Senior MD & Senior Research Analyst at Evercore ISI

Got it. Thank you.

Operator

Thank you. The next question comes from the line of Steven Alexopoulos with TD Cowen. Please proceed with your questions.

Steven Alexopoulos
Senior Analyst - U.S. Large Cap Banks at TD Securities

Hey, good morning everyone. I want to start maybe following up on what you just said in response to Ebrahim's question. So the commercial loan growth is coming from the newer markets, the higher growth MSAs. Is this really a function of new bankers and share gains? Are you guys seeing broad based improved optimism across those faster growing MSAs?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

It's largely share gain.

Steven Alexopoulos
Senior Analyst - U.S. Large Cap Banks at TD Securities

Got it. Okay. So more specific to P and C. Okay. And Bill, this is my first time on your call.

Steven Alexopoulos
Senior Analyst - U.S. Large Cap Banks at TD Securities

And I wanted to take a minute and revisit the scale argument. We just had the big four banks report. When I look at your results compared to them, you guys are very efficient, right? You look at the retail bank, really solid, good organic growth, growing checking accounts, but you don't have the complexity of $1,000,000,000,000 plus bank. To me, you seem to be in the sweet spot, but I know you've talked quite a bit about needing more scale.

Steven Alexopoulos
Senior Analyst - U.S. Large Cap Banks at TD Securities

What's the benefit to doing a larger deal moving much above your current size because you seem to be in a great spot right now?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

We didn't hear us talk about doing a large deal. You just said bigger is better and left to our own devices and organic growth, we will get there. But the argument for scale largely is around the very visible concentration consolidation of retail share in The US. And to succeed long term as you watch the the very big banks grow, We need to be in all markets and have really good products and low cost to serve those clients because that feeds the rest of our engine, right? I am a 100% convinced we can grow our c and I franchise organically. There's a race on retail deposits and that's why we have this big focus on the investment in building branches and, you know, we're refurbishing.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

I don't remember the number, Rob. But the majority of our old branches Okay. We're rolling out. We're probably halfway through now the rollout of a new online banking. We're gonna put out new mobile, you know, with JetTech AI and client service, all of the things you need to do to win in this space.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

You know, with that comes the ability to spread marketing dollars, the ability to spread spread technology dollars, you know, and and and everything else that is kinda self evident and scale itself. And particularly, the technology dollars which are increasing. Yeah.

Steven Alexopoulos
Senior Analyst - U.S. Large Cap Banks at TD Securities

Okay. Thanks for the color.

Operator

Our next question is from the line of Betsy Graseck with Morgan Stanley. Please proceed with your questions.

Betsy Graseck
Betsy Graseck
Global Head - Banks & Diversified Finance Research at Morgan Stanley

Hi, good morning.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Good morning.

Betsy Graseck
Betsy Graseck
Global Head - Banks & Diversified Finance Research at Morgan Stanley

4% positive operating leverage, very impressive. And I just wanted to get and I know you've always got continuous improvement every year Washer and Trepedo helping drive that bus. How does AI impact the degree to which you can get even more efficient from here? Is it just starting and we have to wait five years? Or is it heavily embedded already in the results and it's here today or some other answer? Just wondering. Thank you.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

That's actually a really good way to state the question. So I can give you a million ways we're using AI and thinking about AI. But the more interesting question is how is it gonna make how is it gonna help you make more money or save costs? And, you know, in the what's in use today that is saving us a lot of money, you know, principally in, you know, fraud related areas. So you see, you know, charges go way down.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

In document sort that helps our employees get answers faster in data lake creation and burst through capacity to clouds that help us deliver more accurate models faster. And then the the basic, you know, how do you save money through time, Betsy, is this continuation of automation that we've had largely in our back office for the last ten years. You know, this may accelerate it, but continuous improvement for years has been figuring out how to do the same workload with less. And AI, you know, is gonna be a big part of that. And it's we're looking at it in in everything we do.

Betsy Graseck
Betsy Graseck
Global Head - Banks & Diversified Finance Research at Morgan Stanley

Okay. Thanks. So it's days?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

No. I just don't think there's going to be this gigantic change in the cost base. I think you're just going to see at least in our instance our ability to keep expenses on the low end as it relates to people even as we invest in the technology. It will be the same trend. Go through our line go through our employee cost line versus our tech line for the last ten years. And I just think it continues and AI is the next leg of that in effect.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

More interesting longer term is is away from, you know, the the cool stuff we all talk about in AI, you know, the the the you could be faster, you can solve models for all that stuff, is the how might it change the overall delivery of financial services. And that occupies a lot of our time. So so, you know, we keep talking about the tools. We don't actually talk about the clients and how you end up delivering financial services in a world where, you know, advice can be computer generated, you know, in in in mobile and that that's that's where we're spending all our time.

Betsy Graseck
Betsy Graseck
Global Head - Banks & Diversified Finance Research at Morgan Stanley

Got it. Thanks so much. Appreciate it though.

Operator

Our next questions are from the line of Matt O'Connor with Deutsche Bank. Please proceed with your questions.

Matthew O'Connor
Matthew O'Connor
Analyst at Deutsche Bank

Good morning. I just wanted to get any thoughts you have on deposit pricing and how you're thinking about growth. Slide seven shows just a very modest tick up in the rate paid, I think, as you grew the brokered. And just thoughts going forward, you've got plenty of deposits to grow loans given that loan to deposit ratio is so low, but my guess is you want to grow deposits still?

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Yes. Hey, Matt. It's Rob. So yes, you're right on it. Rate paid in the quarter was pretty stable, up just one basis point over the first quarter.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

For the balance of the year, we do project more deposit growth. And the rate paid could actually go up a little bit, not huge, barring any rate cuts in addition to what we already expect at the end of the year. And that'll probably be more just sort of mix oriented rather than anything anything step change wise.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

But just as an aside, we are at least in the conversation as it relates to our new builds in the newer markets as to whether we should purposely be more competitive in those markets to gain share faster. We're much more interested in actually just growing DDA households. But some of the optics, at least in some of the research pieces, I mean, investors' minds are how fast are you actually growing deposits. Thus far through this whole cycle, we've had one of the lowest cost deposit basis out there and haven't had to chase rate at all. But it's at least part of our conversation internally right now as to whether or not we might change strategy on that particular parts of the markets we're trying to grow.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

And we'd and we do that all the time. It's deliberate and, you know, we'll pick our spot. But, you know, generally speaking, we are pretty stable. It might drift up a bit, but nothing of big magnitude.

Matthew O'Connor
Matthew O'Connor
Analyst at Deutsche Bank

Okay. That makes sense. And then just on the DDA accounts, and sorry if you disclosed this, but do you give the level of the DDA accounts and any split between kind of the growth markets and the legacy markets in terms of growth rates? Thanks.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Yes. So we've grown year to date, we've grown DDAs 2% and within that 6% growth in the Southwest market. So you see that dynamic playing out there.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

This is another just as an aside, this is an example of this issue for scale and needing to be in all markets. So we're going down into the Southwest, Southeast and gaining share at a rapid pace. At the same time, our growth rate in our legacy markets because we have the big banks building branches next to us here in Pittsburgh is slowing down. Right? And so we're a player who can maintain market leading, you know, can grow and maintain market leading share in each market.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

And over time, that's gonna happen. But that means you need to be in the markets, which is why we're we're going so heavy into the build that we're doing.

Matthew O'Connor
Matthew O'Connor
Analyst at Deutsche Bank

Okay. Thank you. Makes sense.

Operator

The next questions are from the line of Ken Houston with Autonomous Research. Please proceed with your questions.

Ken Usdin
Co-Head - Autonomous US & Senior Analyst - US Large-Cap Banks at Autonomous Research

Hey, thanks guys. Good morning. Just a question, Rob, you've mentioned in some one of the slides about starting to lock in higher yields and repricing risk. It looks like there wasn't a lot of new activity with the swaps book and the securities book was flat. So I'm just wondering if you can kind of help us understand what you might be able to do as you look further out and start to think about protecting NII as you look ahead. Yes.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Sure. Sure, Ken. So yes, we spoke about that on the first call. So from our perspective in terms of 2025, NII is largely baked. As we look into additional years out, then that relates to the earlier question, we see ourselves sustaining that trajectory.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Most of what we're doing and we've done a lot is sort of Sustaining that growth rate. Sustaining that growth rate. And most of what we've done is sort of largely in place. So not a lot of activity relative to that in the last ninety days, but we're well positioned and feel good about the NII trajectory.

Ken Usdin
Co-Head - Autonomous US & Senior Analyst - US Large-Cap Banks at Autonomous Research

Okay, great. Got it. And then just one follow-up on the fees. I know you covered the fee categories and such, but just like within that capital markets business, you've got Harris Williams and you've got kind of the other related capital market stuff. I think you said in the past that Harris Williams has kind of been fairly steady, but just wondering what you're seeing across the two sides of those businesses and what activity feels like underneath the surface? Thanks.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Yes. Capital markets, we feel good about it. Like I said, we are tracking to what we expected back in January. Paris Williams, which is our largest component of the Capital Markets segment is about 30%, 40% of it and they're tracking right on to what we expected, which is above last year. And last year was a pretty good year. So

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

What we saw at the end of the first quarter was just a pickup on our bread and butter FX and derivative based business volumes. You know, so Harris Williams is kind of a headline item. But remember, we have, you know, trading businesses and foreign exchange and derivatives and and straight fixed income. We have new issue business. We have syndicate, but there's a lot of stuff in there.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Yes. No, that's right. To Bill's point, that was a little bit soft in the first quarter that has come back in the second quarter and we expect to continue into the third quarter.

Ken Usdin
Co-Head - Autonomous US & Senior Analyst - US Large-Cap Banks at Autonomous Research

Okay. Okay. Got it. All right. Thanks guys.

Operator

The next question is from the line of Bill Carcache with Wolfe Research. Please proceed with your questions.

Bill Carcache
Equity Research Analyst at Wolfe Research

Thanks. Good morning, Bill and Rob. Following up on the acceleration in loan production comments, are you hearing anything from clients on whether bonus depreciation and the tax bill could serve as a potential catalyst for incremental loan growth from your commercial clients?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Not directly. I mean, intuitively it should, but I don't know that I've heard of anybody running out ready to spend something as the bill passed. Right.

Bill Carcache
Equity Research Analyst at Wolfe Research

Got it. And then on the topic of charging fintechs for consumer bank data, can you discuss how you're thinking about fintech data access fees?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

We're in discussions on it. I applaud what JP did. I think they're exactly right. I think there's a big cost to keeping this data secure and producing it in a form that's readable for our clients. So we're, you know, we're thinking about it.

Bill Carcache
Equity Research Analyst at Wolfe Research

Okay. And then Bill, following up on your scale comments, does seeing some of your competitors enter into M and A transactions make you feel a greater sense of urgency in any way? Do you worry about falling behind certain peers by perhaps not taking advantage of a favorable regulatory environment under the current administration at a time where others are more active?

Robert Reilly
EVP & CFO at The PNC Financial Services Group

No.

Bill Carcache
Equity Research Analyst at Wolfe Research

Okay. Fair enough. That's all I had. Thank you.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Yes. Thanks, Bill.

Operator

Our next question comes from the line of Mike Mayo with Wells Fargo. Please proceed with your questions.

Mike Mayo
Mike Mayo
MD & Head - US Large-Cap Bank Research at Wells Fargo

Hi.

Mike Mayo
Mike Mayo
MD & Head - US Large-Cap Bank Research at Wells Fargo

Could you share some light on the loan growth and how much you would consider from your traditional middle market relationship based sources? And if you by the way, if you mentioned utilization already, I might have missed it, but how the utilization did compared to more capital markets oriented type loan growth? And by the way, thought you said you weren't going have any loan growth or you're assuming no loan growth this year. So I guess that's a bit more than expected. But I guess what I'm getting at is you said the loan growth might not all repeat.

Mike Mayo
Mike Mayo
MD & Head - US Large-Cap Bank Research at Wells Fargo

You had a disproportionate amount from your CIB. So it sounds like more of your loan growth is that capital markets variety as opposed to that kind of bread and butter middle market loan. Is that a correct conclusion? And if not, if you could educate me.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

No, that isn't what happened, Mike. We two things. One was we saw a continuation of utilization increase largely in sort of our asset backed areas in some middle market. And then secondly, we just grew a lot of clients. You know, the new markets are coming online.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

The prescreen activity and deal activity coming out of our new markets is multiples of what it is out of the legacy and it's, you know, starting to bear fruit. And it's, you know, our traditional bread and butter clients of middle market to smaller large corporate together with TM relationships and everything else we do is is part of delivering all of PNC to new clients.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

And across all industries, it was broad Yeah. Based across Yeah. All our assets.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

It's it's just us executing. You know, the issue, I didn't I didn't say we weren't gonna grow loans. I said we would you know, if there was loan growth out there, we'd get more than our fair share.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

But, as you've seen it's as in this quarter, it's been somewhat flatlined for a while. But our share gains utilization increase, paid dividends this year or this quarter.

Mike Mayo
Mike Mayo
MD & Head - US Large-Cap Bank Research at Wells Fargo

All right. So is loan growth back to the industry or is it back for P and C? I mean, you implied market share gains more than it's coming back to the industry or is the appetite of your clients increasing?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

My guess is you're going to the utilization increase you'll see broad based just on the back of people front running tariff impact in their inventory levels. But the, you know, a big chunk of our growth is just organic growth, new clients and new markets, and I suspect we'll stand out on that.

Mike Mayo
Mike Mayo
MD & Head - US Large-Cap Bank Research at Wells Fargo

And the the two words where you said not repeating, what did you mean by that?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Sorry, say that again?

Mike Mayo
Mike Mayo
MD & Head - US Large-Cap Bank Research at Wells Fargo

I thought you in reference to loan growth, said not repeat something to not repeating or maybe I misheard that.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Maybe I can jump in. I just say in terms of loan growth, the tariff driven increase in utilization across broad assets is probably in some form present at all banks. We're different. These growth markets that are adding to that loan growth that are independent sort of the reaction to the current environment.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

The utilization number, does it go up or down from here is really a punt on tariffs. Tariffs went completely away and people would drop their inventories to all levels, you'd see utilization across the industry decline again. So I which is one of the reasons which to forecast aggressive loan growth.

Mike Mayo
Mike Mayo
MD & Head - US Large-Cap Bank Research at Wells Fargo

All right. So the market share you're saying is more a permanent driver of loan growth, the tariff driven part of that loan growth ways to be seen?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Correct.

Mike Mayo
Mike Mayo
MD & Head - US Large-Cap Bank Research at Wells Fargo

Got it. All right. Thank you.

Operator

The next questions are from the line of Gerard Cassidy with RBC Capital Markets. Please proceed with your question.

Gerard Cassidy
Gerard Cassidy
Managing Director at RBC Capital Markets

Hi, Bill. Hi, Rob. Bill, your comments about the BPI making the letter to the rating agencies about capital requirements may turn out to be the binding constraint rather than the regulatory requirements. In your guys' estimation, based upon your working experience with both the regulators and the credit agencies, rating agencies, do they kind of work together? Or is this kind of a divide that is something new?

Gerard Cassidy
Gerard Cassidy
Managing Director at RBC Capital Markets

Or or do they ignore one another in the past? How is this going to maybe play out is what I'm trying to get at?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Rod may have different comments. I don't think they talk to each other.

Gerard Cassidy
Gerard Cassidy
Managing Director at RBC Capital Markets

Okay.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

I I On methodologies, on anything, it's it's, you

Robert Reilly
EVP & CFO at The PNC Financial Services Group

know, it's frustrating. There's an opportunity to reconcile the two views. To the extent that they do that, you know, it's obviously up to them.

Gerard Cassidy
Gerard Cassidy
Managing Director at RBC Capital Markets

Right. Possibly the Capital Framework Conference next week in Washington might shed some light on that possibly. Bill and Rob, your guys thoughts on this one, it's more of a macro question. Obviously, there's been a lot of talk about stablecoin. You've got the COIN Act down in Washington that's likely to be passed very soon.

Gerard Cassidy
Gerard Cassidy
Managing Director at RBC Capital Markets

What are your guys' view on stablecoins and how it may impact the payments business for P and C as well as deposits? Any thoughts there?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Yes. Let me take a bit of a broader angle on the whole thing and let's talk about crypto and payments I should say how we will play. First off, you should expect to see from us, announcements with respect to using our payment technology to help crypto companies. So, you know, now we are allowed to bank, people in that business, and just given our rock capabilities, you would expect that, you know, we'll get some meaningful clients there.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Secondly, we will enable our clients in the very near term to be able to use crypto to see if they're you know, to to have a wallet and to trade it. Thirdly, you would expect my expectation is an industry solution with respect to an industry led stable coin and we would clearly be part of that. Now what does all that necessarily mean in terms of payments and stable coin and does it massively change the ecosystem today? I think despite, you know, a lot of the hype, there isn't really a cost advantage or a driving need to use stable coin at least at domestic commerce. There's use cases in terms of external transfers out of the country.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

There's use cases of just storing dollars out of the country. Some of which will be stopped by the stable coin bill simply because of know your customer rules. You know, whether it takes off in cross border commerce, I'm probably less bullish than some. But if it does, we will have it enabled inside of our Pinnacle platform such that somebody gives us a payment file and our job is to optimize the cost of executing those payments. We'll be fully capable of using stable coin in that payment stream, You know, the same way we use wire or we use ACH or we use p card.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Another tool. Yeah. It's just another thing. As it relates to deposits, you know, don't am I worried that it's somehow gonna drain deposits from the system? I am not.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

It's it's it's a it's a good fear factor if you wanna, you know, if we wanna rile people up. But, you know, practically, there's trillions of dollars in money funds today that you could move in and out of using ACH linkages. We're competitive on rates, you know, if there's a bank scare and where does it run to, you know, we saw that 23 at all end of the money funds. Maybe some will run to stable point at some point in the future, but ultimately, it comes back into our accounts as we've seen. So I I you know, this is gonna be another payment tool.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

We're gonna add it to the quiver tools that we have. We're gonna empower our clients if they wanna use it because we do what our clients want. I think the revenue opportunities for us beyond just serving clients day to day are likely to be seen in our payment business, in our treasury management business as we enable both new clients and then blockchain technology for existing clients.

Gerard Cassidy
Gerard Cassidy
Managing Director at RBC Capital Markets

Very helpful. Thank you.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Yep.

Operator

Thank you. The next question is from the line of Saul Martinez with HSBC. Please proceed with your questions.

Saul Martinez
Saul Martinez
Head - US Financials Research at HSBC

Hey, good morning. Just a real quick one on your retail lending strategy. Your auto book has grown a bit. Cards are sort of flattish to down. Can you just give us an update on what your what the strategy is here?

Saul Martinez
Saul Martinez
Head - US Financials Research at HSBC

What you're doing? Do you expect these businesses to grow? Is it important to grow? And do you need to or does it make sense to look at inorganic growth for this to be for these businesses to become relevant as a part of your business mix?

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Well, I'll answer the back part first. It is extremely unlikely that we would look at inorganic growth in the retail credit space, simply because in most instances the thing that's available to buy is broken and we are not experts at fixing a broken. We are building that expertise. We have heavy investment card. We would love to grow card balances and we think we can do that simply through deeper penetration with our existing client base.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Our auto book has been growing largely because we didn't run for the hills in the slight bobble of economy earlier, I think last year, I guess.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Well, the RWA diets that others were on.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Yes.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

So we're going to keep investing organically on product capability, credit underwriting, marketing offers, convenience for clients as it relates to the ability to open accounts online and so on and so forth and hopefully deepen cross sell penetration of our existing clients. But you won't see us buy some money.

Saul Martinez
Saul Martinez
Head - US Financials Research at HSBC

Thanks. That's helpful.

Operator

The next question is a follow-up from the line of Gerard Cassidy with RBC. Please proceed with your questions.

Gerard Cassidy
Gerard Cassidy
Managing Director at RBC Capital Markets

Thank you. Bill or Rob, can you guys comment obviously, they had the big meeting up at Carnegie Mellon, think it was yesterday with the AI investments. What could that mean for Pennsylvania or the Pittsburgh area in terms of economic activity? And obviously, assume you guys will benefit from that as well.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Yes. Thanks for the question. I spent the better part of Monday and Tuesdays as part of that conference. It's pretty exciting. There's we announced $92,000,000,000 of investment into Pennsylvania largely around building the energy and data structure in sorry, data infrastructure to support AI.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

You know, we have, you know, as a state sort of all of the the core resources or in the right FEMA zone, we have, lots of natural gas. We have analytic and college resources and talented people and people are kinda coming together to cause it to happen. So it's it's pretty exciting. The place is bustling. I you know, that the one of the things independent of my PNC job is I I sit on the Allegheny Conference which looks at the 10 counties out here and the the take up of available build spaces, I think land and large mega project sites, some of which have been there for years. They're disappearing fast and it's pretty exciting.

Gerard Cassidy
Gerard Cassidy
Managing Director at RBC Capital Markets

Very good. I appreciate it. Thank you.

Operator

Thank you. At this time, we've reached the end of our question and answer session. And I'll hand the call back to Brian Gill for closing comments.

Bryan Gill
Bryan Gill
EVP, Director - IR at The PNC Financial Services Group

Well, thank you all for joining our call today and your interest in and support of PNC. And please feel free to reach out to the IR team if you have any follow-up questions.

William Demchak
William Demchak
Chairman & CEO at The PNC Financial Services Group

Thank you.

Robert Reilly
EVP & CFO at The PNC Financial Services Group

Thank you.

Operator

Ladies and gentlemen, thank you for your participation. This does conclude today's teleconference. You may now disconnect your lines and have a wonderful day.

Executives
Analysts
    • Robert Reilly
      EVP & CFO at The PNC Financial Services Group
    • David George
      Senior Research Analyst at Baird
    • Christopher Mcgratty
      MD & Head of U.S. Bank Research at Keefe, Bruyette & Woods (KBW)
    • John Pancari
      Senior MD & Senior Research Analyst at Evercore ISI
    • R. Scott Siefers
      MD & Senior Research Analyst at Piper Sandler Companies
    • Ebrahim Poonawala
      MD & Head - North American Banks Research at Bank of America Merrill Lynch
    • Steven Alexopoulos
      Senior Analyst - U.S. Large Cap Banks at TD Securities
    • Betsy Graseck
      Global Head - Banks & Diversified Finance Research at Morgan Stanley
    • Matthew O'Connor
      Analyst at Deutsche Bank
    • Ken Usdin
      Co-Head - Autonomous US & Senior Analyst - US Large-Cap Banks at Autonomous Research
    • Bill Carcache
      Equity Research Analyst at Wolfe Research
    • Mike Mayo
      MD & Head - US Large-Cap Bank Research at Wells Fargo
    • Gerard Cassidy
      Managing Director at RBC Capital Markets
    • Saul Martinez
      Head - US Financials Research at HSBC
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