Q1 2025 PNC Financial Services Group Inc Earnings Call

Operator: Greetings and welcome to the PNC Financial Services Group First Quarter 2025 Earnings Conference. At this time, all participants are on a listen only. The question-and-answer session will follow the formal process.

Greetings and welcome to the PNC Financial Services Group first quarter 2025 earnings Conference call.

At this time all participants are in a listen only mode. A question and answer session will follow the formal presentation.

Operator: If anyone should require operator assistance during the conference, please press star zero on your telephone. As a reminder, this conference is being recorded.

If anyone should require operator assistance during the conference. Please press star zero on your telephone keypad as a reminder, this conference is being recorded.

Bryan Gill: I would now like to turn the conference over to your host, Bryan Gill, Executive Vice President and Director of Investment. Thank you.

Speaker Change: I'd now like to turn the conference over to your host Bryan Gill Executive Vice President and director of Investor Relations. Thank you you may begin.

Bryan Gill: You may Well, good morning. Welcome to today's conference call for the PNC Financial Services Group.

Bryan Gill: Well good morning, welcome to today's conference call for the PNC Financial services group.

Bryan Gill: I am Bryan Gill, the Director of Investor Relations for PNC, and participating on this call are PNC's Chairman and CEO, Bill Demchak, and Rob Reilly, Executive Vice President and CFO. Today's presentation contains forward-looking information. 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.

Bryan Gill: Bryan Gill the director of Investor Relations for P&C and participating on this call are Pnc's, chairman and CEO, Bill Demchak, and Rob Reilly Executive Vice President and CFO.

Bryan Gill: Today's presentation contains forward looking information 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 industrial materials.

Bryan Gill: These are all available on our corporate website, pnc.com, under Investor Relations. These statements speak only as of April 15th, 2025, and PNC undertakes no obligation to update them.

Bryan Gill: These are all available on our corporate website PNC com under Investor Relations.

Bryan Gill: These statements speak only as of April 15th 2025, and PNC undertakes no obligation to update them now I'd like to turn the call over to Bill.

William Demchak: Now I'd like to turn the call over to Bill. Thank you, Bryan. And good morning, everyone. As you've seen, PNC had a strong first quarter of 2025. But before we go into the results, I want to spend a second just on the current environment. Obviously, there's been an increased level of volatility due to uncertainty regarding tariffs that has dominated the headlines over the past two weeks, roiling the markets and raising concerns of a potential recession. As you would expect, we continue to monitor and evaluate the situation, communicating with our clients to gauge their understanding of the potential impact on their businesses and daily lives.

Bill Demchak: Thank you, Brian and good morning, everyone as you've seen P&C had a strong first quarter of 'twenty 'twenty five but before we go into the results I want to spend a second just on the current environment, obviously theres been an increased level of volatility due to the due to uncertainty regarding tariffs that has dominated the headlines over the past two weeks.

Bill Demchak: <unk> royalty in the markets and raising concerns of a potential recession.

Bill Demchak: As you would expect we continue to monitor and evaluate the situation communicating with our clients to gauge their understanding of the potential impact on their businesses and daily lives.

William Demchak: However, it's still very early, and the fluidity of the news coming out of Washington makes it difficult to narrow the range of potential outcomes for the broader economy at this point. Irrespective of that outcome, we have demonstrated time and again that we will perform well in periods of uncertainty. The foundation of our success has been built upon the strength of our balance sheet, client selection, our interest rate risk positioning, our diversified business mix, leading technology, and our people. And that has not changed. As always, we will continue to focus on the things we can control with an emphasis on providing superior products and services to meet the needs of our customers while executing on the organic growth opportunities in front of us.

Bill Demchak: However, it's still very early in the fluidity of the news coming out of Washington makes it difficult to narrow the range of potential outcomes for the broader economy at this point.

Bill Demchak: Irrespective of that outcome, we have demonstrated time and again that we will perform well in periods of uncertainty.

Bill Demchak: Foundation of our success has been built upon the strength of our balance sheet client selection, our interest rate risk positioning our diversified business mix, leading technology and our people and that has not changed.

Bill Demchak: As always we will continue to focus on the things we can control with an emphasis on providing superior products and services to meet the needs of our customers while executing on the organic growth opportunities in front of us and we saw that play out this quarter as we grew customers and deepen relationships across our coast to coast franchise.

William Demchak: And we saw that play out this quarter as we grew customers and deepened relationships across our coast-to-coast franchise. We delivered another quarter of strong results, generating net income of $1.5 billion, or $3.51 per share. While loan growth remained challenging for the industry, we were pleased to see 3% growth on our spot C&I loans, as well as strong new commitments during the quarter. As expected, total revenue this quarter was primarily impacted by lower day count and seasonality, but expenses were well controlled, and our net interest margin expanded. Importantly, we remain on track to deliver positive operating leverage and achieve record NII for the year.

Bill Demchak: We delivered another quarter of strong results generating net income of one $5 billion or $3.51 per share while loan growths remain challenging for the industry. We were pleased to see 3% growth on our spot C&I loans as well as strong new commitments during the quarter as expected total revenue. This.

Bill Demchak: Quarter was primarily impacted by lower day, count and seasonality, but expenses were well controlled and our net interest margin expanded.

Bill Demchak: Importantly, we remain on track to deliver positive operating leverage and achieved record NII for the year credit quality is strong and we remain well reserved Rob is going to cover that in some more detail in a few minutes. Finally, we continue to build our capital levels during the quarter, while also providing significant shareholder return.

William Demchak: Credit quality is strong, and we remain well-reserved.

Robert Reilly: Rob is going to cover that in some more detail in a few minutes.

William Demchak: Finally, we continue to build our capital levels during the quarter, while also providing significant shareholder returns through dividends and share repurchases. In summary, we delivered strong results in the quarter, and we remain well-positioned to deliver on our strategic priorities.

Bill Demchak: Through dividends and share repurchases.

Speaker Change: Summary, we delivered strong results in the quarter, and we remain well positioned to deliver on our strategic priorities before I turn it over to Rob for more detail on our financial results I'd like to welcome Mark Wiedman, who we appointed to the role of President last week I'm thrilled Mark has joined US in this role Mark brings deep experience in financial services that will complement the.

William Demchak: Before I turn it over to Rob for more detail on our financial results, I'd like to welcome Mark Weidman, who we appointed to the role of president last week. I'm thrilled Mark has joined us in this role. Mark brings deep experience in financial services that will complement the strength of our existing team. I have known Mark for 20 years, and we are fortunate that the timing was right for him to join our team.

Speaker Change: Strength of our existing team I've known Mark for 20 years, and we are fortunate that the timing was right for him to join our team I'd also like to thank our employees for everything they do for our company and our customers and with that I'll turn it over to Rob to take you through the quarter.

William Demchak: I'd also like to thank our employees for everything they do for our company and our customers.

Robert Reilly: And with that, I'll turn it over to Rob to take you through the quarter. Thanks, Bill, and good morning, everyone. Our balance sheet is on slide three and is presented on an average basis. For the linked quarter, loans of $317 billion declined $2 billion or 1%. Notably, on a spot basis, loans increased $2 billion, or 1%, compared to December 31. Investment securities of $142 billion decreased by $2 billion and our cash balance at the Federal Reserve was $34 billion, a decrease of $3 billion, or 9%. Deposit balances declined $5 billion, or 1%, and averaged $421 billion.

Rob Reilly: Thanks, Bill and good morning, everyone. Our balance sheet is on slide three and is presented on an average basis for the linked quarter loans of $317 billion declined $2 billion or 1%.

Rob Reilly: Notably on a spot basis loans increased $2 billion or 1% compared to December 31st.

Rob Reilly: Investment securities of $142 billion decreased by $2 billion.

Rob Reilly: And our cash balance at the Federal reserve was $34 billion, a decrease of $3 billion or 9%.

Rob Reilly: Deposit balances declined $5 million or 1% and averaged $421 billion.

Robert Reilly: Borrowings of $65 billion were lower primarily due to a reduction in FHLB advances. And at quarter end, AOCI was negative $5.2 billion, an improvement of $1.3 billion, or 20%, compared with December 31st. Our tangible book value increased to $100.40 per common share, which was a 5% 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 10.6% as of March 31st. We estimate our CET1 ratio, inclusive of AOCI, to be 9.4% at quarter end.

Rob Reilly: Borrowings of $65 billion were lower primarily due to a reduction in EF H L. D advances.

Rob Reilly: And at quarter end, a OCI was negative $5.2 billion, an improvement of $1.3 billion or 20% compared with December 31st.

Rob Reilly: Our tangible book value increased to $100.40 per common share, which was a 5% increase linked quarter and a 17% increase compared to the same period a year ago.

Rob Reilly: We remain well capitalized with an estimated CET one ratio of 10.6% as of March 31st we estimate our CET one ratio inclusive of a OCI to be 9.4% at quarter end.

Robert Reilly: And during the first quarter, we returned approximately $800 million of capital to shareholders through both common dividends and share repurchases.

Rob Reilly: And during the first quarter, we returned approximately $800 million of capital to shareholders through both common dividends and share repurchases.

Robert Reilly: Slide four shows our loans in more detail. Average loan balances of $317 billion declined $2 billion, or 1%, driven by lower commercial real estate and consumer loans. Importantly, on a period-end basis, total loans grew more than $2 billion, or 1%. The strong growth in C&I loans was partially offset by continued runoff in the CRE office portfolio and lower consumer balance.

Rob Reilly: Slide four shows our loans in more detail.

Rob Reilly: Average loan balances of $317 billion declined $2 billion or 1% driven by lower commercial real estate and consumer loans.

Rob Reilly: Importantly on a period end basis total loans grew more than $2 billion or 1% as strong growth in C&I loans was partially offset by continued run off in the CRE office portfolio and lower consumer balances.

Robert Reilly: C&I loans were $181 billion on March 31st, an increase of $5 billion, or 3%, reflecting broad growth across loan categories. This represented the largest increase in C&I balances since the fourth quarter of 2022. and was driven by higher utilization rates and new loan production. Regarding utilization, we saw positive trends in the first quarter with increases in each consecutive month and ending the quarter at 50.3%, or 80 basis points higher than year-end.

Rob Reilly: C&I loans were $181 billion on March 31st an increase of $5 billion or 3%, reflecting broad growth across loan categories.

Rob Reilly: This represented the largest increase in C&I balances since the fourth quarter of 2022.

Rob Reilly: And was driven by higher utilization rates and new loan production rigor.

Rob Reilly: Regarding utilization, we saw positive trends in the first quarter with increases in each consecutive month and ending the quarter at 50.3% or 80 basis points higher than year end.

Robert Reilly: Slide 5 details our investment securities and SWOT portfolios. Average investment securities decreased $2 billion to $142 billion as prepayments and maturities outpaced purchases. During the first quarter, our securities yield was stable at 3.17%, and as of March 31st, approximately 20% of the portfolio was floating rate, and our duration was estimated to be 3.4 years. Our active received fixed rate swaps totaled $39 billion on March 31st and the weighted average received rate increased 27 basis points linked quarter to 3.49% and up from 2.2% this time last year.

Rob Reilly: Slide five details our investment securities and swap portfolios.

Rob Reilly: Average investment securities decreased $2 billion to $142 billion as prepayments and maturities outpaced purchases.

Rob Reilly: During the first quarter, our securities yield was stable at 3.17% and as of March 31st approximately 20% of the portfolio was floating rate and our duration was estimated to be 3.4 years.

Rob Reilly: Our active receive fixed rate swaps totaled $39 billion on March 31st and the weighted average received rate increased 27 basis points linked quarter to 3.49% and up from 2.2%. This time last year.

Robert Reilly: Our forward starting swaps now total $20 billion, including $9 billion that were added during the first quarter, which will roll on through 2026. With the addition of these swaps, we've reduced our interest rate sensitivity and further locked in a portion of our fixed rate asset reprice.

Rob Reilly: Our forward starting swaps now total $20 billion, including $9 billion that were added during the first quarter, which will roll off through 2026 with the addition of these swaps we've reduced our interest rate sensitivity and further locked in a portion of our fixed rate asset repricing.

Robert Reilly: Slide six covers our deposit balances in more detail. Average deposits decreased $5 billion, or 1%, to $421 billion. Consumer and commercial deposits followed seasonal trends. Consumer deposits of $210 billion increased $4 billion, or 2%, and commercial deposits of $206 billion declined $5 billion, or 2%.

Rob Reilly: Slide six covers our deposit balances in more detail.

Rob Reilly: Average deposits decreased $5 billion or 1% to $421 billion consumer.

Rob Reilly: Commercial deposit followed seasonal trends consumer deposits up $210 billion increased $4 billion or 2% and commercial deposits of $206 billion declined $5 billion or 2%.

Robert Reilly: Lastly, we have a small amount of brokered CDs totaling $5 billion, which declined $3 billion as part of our funding plan. Our rate paid on interest-bearing deposits declined 20 basis points during the first quarter to 2.23%, and our cumulative deposit beta through March was 51%.

Rob Reilly: Lastly, we have a small amount of brokered cd's totaling $5 billion, which declined $3 billion as part of our funding plan.

Rob Reilly: Our rate paid on interest bearing deposits declined 20 basis points during the first quarter to two point to 3%.

Rob Reilly: And our cumulative deposit beta through March was 51%.

Robert Reilly: Turning to slide 7, we highlight our income statement trends this quarter. First quarter net income was $1.5 billion, or $3.51 per share. Compared to the same period a year ago, we've demonstrated strong momentum across our franchise. Total revenue increased $307 million, or 6%, driven by higher net interest income and fee growth. Non-interest expense increased $53 million, or 2%, reflecting increased business activity, technology investments, and higher marketing spend. And that income grew $155 million, resulting in EPS growth of 13% year over year.

Rob Reilly: Turning to slide seven we highlight our income statement trends this quarter.

Rob Reilly: First quarter net income was $1.5 billion or $3.51 per share.

Rob Reilly: Compared to the same period, a year ago, we demonstrated strong momentum across our franchise.

Rob Reilly: Total revenue increased $307 million or 6% driven by higher net interest income and fee growth.

Rob Reilly: Noninterest expense increased $53 million or 2%, reflecting increased business activity technology investments and higher marketing spend.

Rob Reilly: And net income grew $155 million, resulting in EPS growth of 13% year over year.

Robert Reilly: Comparing the first quarter to the fourth quarter, total revenue of $5.5 billion decreased $115 million or 2% in large part due to seasonality. Non-interest expense of $3.4 billion declined to $119 million or 3%. Provision was $219 million, reflecting changes in macroeconomic factors and portfolio activity. and our effective tax rate was 18.8%.

Rob Reilly: Comparing the first quarter to the fourth quarter.

Rob Reilly: Total revenue of $5 $5 billion decreased $115 million or 2%, a large part due to seasonality.

Rob Reilly: Noninterest expense of $3.4 billion declined $119 million or 3%.

Rob Reilly: Provision was $219 million, reflecting changes in macroeconomic factors and portfolio activity.

Rob Reilly: And our effective tax rate was 18, 8%.

Robert Reilly: Turning to slide 8, we detail our revenue trends. First quarter revenue of $5.5 billion declined to $115 million or a 2% linked quarter. Net interest income of $3.5 billion decreased $47 million or 1%. The decline was driven by two fewer days in the quarter, partially offset by the benefit of lower funding costs and fixed-rate asset repricing. And our net interest margin was 2.78%, an increase of three basis. Fee income of $1.8 billion decreased $30 million or 2% linked quarters. Looking at the details, asset management and brokerage income increased $17 million, or 5%, driven by higher brokerage client activity and positive net flows.

Rob Reilly: Turning to slide eight we detail our revenue trends.

Rob Reilly: First quarter revenue of $5 $5 billion declined $115 million or 2% linked quarter.

Rob Reilly: Net interest income of $3 $5 billion decreased $47 million or 1% the.

Rob Reilly: The decline was driven by two fewer days in the quarter, partially offset by the benefit of lower funding costs and fixed rate asset repricing.

Rob Reilly: And our net interest margin was 2.78% an increase of three basis points.

Rob Reilly: Fee income of $1.8 billion decreased $30 million or 2% linked quarter.

Rob Reilly: Looking at the details.

Rob Reilly: Asset management, and brokerage income increased $17 million or 5% driven by higher brokerage client activity and positive net flows.

Robert Reilly: Capital markets and advisory fees decreased $42 million or 12%, reflecting lower M&A advisory and trading revenue. Card and cash management was stable as higher treasury management revenue was offset by seasonally lower consumer spending. Lending and Deposit Services revenue decreased $14 million or 4% in part due to seasonality. Mortgage revenue increased $12 million or 10% reflecting higher MSR hedging activity.

Rob Reilly: Capital markets, and advisory fees decreased $42 million or 12%, reflecting lower M&A advisory and trading revenue.

Rob Reilly: Card and cash management was stable as higher Treasury management revenue was offset by seasonally lower consumer spending.

Rob Reilly: Lending and deposit services revenue decreased $14 million or 4% in part due to seasonality.

Rob Reilly: Mortgage revenue increased $12 million or 10%, reflecting higher MSR hedging activity.

Robert Reilly: and our other non-interest income of $137 million decreased $38 million and included $40 million of negative visa derivative adjustments primarily related to litigation escrow funding. As a reminder, PNC owns 1.8 million Visa Class B shares, with an unrecognized gain of approximately $950 million as of March 31st.

Rob Reilly: And our other noninterest income of $137 million decreased $38 million and included $40 million of negative visa derivative adjustments primarily related to litigation escrow funding.

Rob Reilly: As a reminder, P. N P owns 1.8 million visa class B shares with an unrecognized gain of approximately $950 million as of March 31.

Robert Reilly: Turning to slide nine, we detail our non-interest expense trends. On a linked quarter basis, non-interest expense declined $119 million or 3% as a result of fourth quarter asset impairments as well as seasonality.

Rob Reilly: Turning to slide nine we detail our noninterest expense trends.

Rob Reilly: On a linked quarter basis, noninterest expense declined $119 million or 3%.

Rob Reilly: As a result of fourth quarter asset impairments as well as seasonality.

Robert Reilly: We remain focused on expense management, and as we've previously stated, we have a goal to reduce costs by $350 million 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 confident we will achieve our full-year target.

Rob Reilly: We remain focused on expense management and as we previously stated we have a goal to reduce cost by $350 million in 2025 through our continuous improvement program.

Rob Reilly: As you know this program funds a significant portion of our ongoing business and technology investments and we're confident we will achieve our full year target.

Robert Reilly: Our credit metrics are presented on slide 10. Non-performing loans of $2.3 billion were stable quarter over quarter with a small decrease in consumer. Total delinquencies of $1.4 billion were up $49 million, or 4%, compared with December 31st, which included approximately $55 million of California wildfire forbearance activity. Net loan charge-offs were $205 million, down $45 million, representing a net charge-off ratio of 26 basis points. The decline was largely driven by lower CRE office charge-offs related to the timing of resolution on certain office properties, and we expect the level to vary quarter-to-quarter as we work through these loans.

Rob Reilly: Our credit metrics are presented on slide 10.

Rob Reilly: Nonperforming loans at $2.3 billion were stable quarter over quarter with a small decrease in consumer.

Rob Reilly: Total delinquencies of $1.4 billion were up $49 million or 4% compared with December 31, which included approximately $55 million of California wildfire forbearance activity.

Rob Reilly: Net loan charge offs were $205 million down $45 million, representing a net charge off ratio of 26 basis points.

Rob Reilly: The decline was largely driven by lower CRE office charge offs related to the timing of resolution on certain office properties and we expect the level to vary quarter to quarter as we work through these loans.

Robert Reilly: Importantly, our overall credit quality remains strong across our portfolio, and our allowance for credit losses totaled $5.2 billion, or 1.64% of total loans at the end of the first quarter. This level of reserves includes an increase in the downside weightings of our CECL economic scenarios, along with some considerations for tariffs. As you know, the proposed tariffs on April 2nd were more severe than anticipated. If these tariffs are implemented as proposed and remain in effect for an extended period, it's quite possible the probability of a recession will go up. We're actively assessing our portfolios and analyzing a wide range of factors, both positive and negative, that could impact our commercial and consumer exposure.

Rob Reilly: Importantly, our overall credit quality remains strong across our portfolio and our allowance for credit losses totaled $5.2 billion or 1.64% of total loans at the end of the first quarter.

Rob Reilly: This level of reserves includes an increase in the downside weightings of our Cecil economic scenarios, along with some considerations for tariffs.

Rob Reilly: As you know the proposed tariffs on April 2nd were more severe than anticipated if.

Rob Reilly: If these tariffs are implemented as proposed and remain in effect for an extended period, it's quite possible the probability of a recession will go up.

Rob Reilly: We're actively assessing our portfolios and analyzing a wide range of factors, both positive and negative that could impact our commercial and consumer exposures.

Robert Reilly: However, we view the current environment as too fluid to reasonably change our estimates at this time.

Rob Reilly: However, we view the current environment is too fluid to reasonably change our estimates at this time.

Robert Reilly: In summary, PNC reported a solid first quarter and we're well positioned for the remainder of 2025. Our full year guidance is unchanged.

Rob Reilly: In summary, PNC reported a solid first quarter and we're well positioned for the remainder of 2025.

Rob Reilly: Our full year guidance is unchanged how.

Robert Reilly: However, given the uncertainty of the proposed tariffs and the potential for disruption in client activity, our non-interest income could be pressured throughout the balance of the year, and we'll obviously closely monitor this as these factors continue to develop. For the full year 2025 compared to the full year 2024, we expect average loans to be stable, which equates to spot loan growth of 2% to 3%. We expect full year net interest income to be up six to seven percent. We expect non-interest income to be up approximately 5%. Taking the component pieces of revenue together, we expect total revenue to be approximately six percent.

Rob Reilly: However, given the uncertainty of the proposed tariffs and the potential for disruption in client activity, our noninterest income could be pressured throughout the balance of the year and we'll obviously closely monitor this as these factors continue to develop.

Rob Reilly: For the full year 2025, compared to the full year 'twenty 'twenty four.

Rob Reilly: We expect average loans to be stable, which equates to spot loan growth of 2% to 3%.

Rob Reilly: We expect full year net interest income to be up 6% to 7%.

Rob Reilly: We expect noninterest income to be up approximately 5%.

Rob Reilly: Taking the component pieces of revenue together, we expect total revenue to be up approximately 6% we expect.

Robert Reilly: We expect non-interest expenses to be up approximately 1% and we expect our effective tax rate to be approximately 19%. For the second quarter of 2025, compared to the first quarter of 2025, we expect average loans to be up approximately 1%. Net interest income to be up one to two percent. Fee income to be up 1-3%. other non-interest income to be in the range of $150 and $200 million. Taking the component pieces of revenue together, we expect total revenue to be up 1-3%. We expect non-interest expense to be stable.

Rob Reilly: Noninterest expenses to be up approximately 1%.

Rob Reilly: And we expect our effective tax rate to be approximately 19%.

Rob Reilly: For the second quarter of 'twenty twenty-five compared to the first quarter of 2025, we expect average loans to be up approximately 1%.

Rob Reilly: Net interest income to be up 1% to 2%.

Rob Reilly: Fee income to be up 1% to 3%.

Rob Reilly: Other noninterest income to be in the range of 150 and $200 million.

Rob Reilly: Taking the component pieces of revenue together, we expect total revenue to be up 1% to 3%.

Rob Reilly: We expect noninterest expense to be stable.

Robert Reilly: and we expect second quarter net charge-offs to be approximately $300 million.

Rob Reilly: And we expect second quarter net charge offs to be approximately $300 million.

Bryan Gill: And with that, Bill and I are ready to take your questions. Thank you.

Bill Demchak: And with that Bill and I are ready to take your questions.

Speaker Change: Thank you at this time, we'll be conducting a question and answer session. If you'd like to ask a question. Please press star one on your telephone keypad.

Operator: At this time, we'll be conducting a question and answer session.

Operator: If you'd like to ask a question, please press star 1 on your telephone. The confirmation tone will indicate your line is in the question. You may press star two if you'd like to remove your question.

Bill Demchak: A confirmation tone will indicate your line is in the question queue. You May press star two if you'd like to remove your question from the Q.

Operator: For participants using speaker equipment, it may be necessary to pick up your handset before One moment, please, while we poll.

Bill Demchak: For participants using speaker equipment, it may be necessary to pick up your handset before pressing the darkies one moment. Please while we poll for questions.

John Pancari: Our first question comes from John Pancari with Evercore. Please proceed with your question. Morning.

Speaker Change: Our first question comes from John <unk> with Evercore. Please proceed with your question.

John: Good morning.

Rob Reilly: On the loan growth front, solid end-of-period loan growth in C&I, as you cited, and they cited higher line utilization and improved loan production, can you just give us a little more color around the drivers and what specific areas in C&I are you seeing that, and is there any of that transient in terms of potential line draws just to fund some inventory build-up ahead of tariffs and therefore more of a pull forward or anything like that, and is any of it maybe precautionary line draws given the recessionary backdrop?

Speaker Change: Hey, John Good morning on the on the on the loan growth front.

Speaker Change: Solid end of period loan growth in C&I as you cited.

Speaker Change: I know you cited higher line utilization and improved loan production.

Speaker Change: Can you just give us a little more color around the drivers and what specific areas in C&I.

Speaker Change: And is there any of that transient in terms of potential line draws just a phone from inventory buildup ahead of tariffs and therefore more of a pull forward or anything like that and is any of it may be precautionary line draws given the recessionary backdrop. Thanks.

Rob Reilly: I'm sorry, Bill is going to answer. Hey, John, good morning. It's Rob. Yeah, so we were encouraged by the increase in the outstandings through the quarter. And when you look in our financial supplement, you'll see it was pretty broad based across most of our loan categories. You know, we had been calling for this for some time in terms of increased utilization, which we saw in the quarter. So, that tracks to what we thought at the beginning of the year. As far as, you know, some of this defensive or these tariff-driven, it's hard to say. It's not all of it for sure.

Rob Reilly: So you I mean upside by Bill is going to insert Hey, John Good morning, It's Rob Yeah.

Rob Reilly: Yeah. So we were encouraged by the increase in the Outstandings, but through the quarter and when you look at our financial supplement you'll see it was pretty broad based across most of our loan categories.

Rob Reilly: We have been calling for this for some time in terms of increased utilization, which we saw in the quarter.

So that tracks to what we thought at the beginning of the year.

Rob Reilly: As far as some of this defensive or are these some tariff.

Rob Reilly: Tariff driven it's hard to say, it's not all of it for sure maybe theres a little bit of it in there, but generally speaking we didn't see we saw growth we didn't see massive growth for a massive shift so 80 basis points or I'm, sorry, 80 on the utilization isn't huge.

Rob Reilly: Maybe there's a little bit of it in there, but, you know, generally speaking, we didn't see – we saw growth. We didn't see massive growth or a massive shift. So, 80 basis points – or I'm sorry, 80 on the utilization isn't huge, but it was in line with, you know, gradual normalization. It's interesting that, you know, in all the dialogue that I've kind of had with clients, nobody's saying they're purposely building inventory in advance of the tariffs, having said that. You know, most of our lines finance working capital, so most definitionally, there's some inventory built in.

Rob Reilly: But it was in line with.

Rob Reilly: Gradual gradual normalization.

Rob Reilly: It's interesting.

Rob Reilly: You know in all of the dialogue that I've had with clients nobody's, saying, they're purposely building inventory in advance of the tariffs having said that.

Rob Reilly: You know most of our lines finance working capital So most definition.

Rob Reilly: Bill.

John Pancari: Got it. Okay, now that's helpful.

Rob Reilly: Got it Okay. That's helpful and then separately on the.

Bill Carcache: And then separately, on the capital markets front, understandably, trends there are pressured, given the backdrop, and you saw that pressure this quarter.

Rob Reilly: Capital markets front understandably trends they are pressured given the.

Rob Reilly: The backdrop and you saw that pressure this quarter.

Rob Reilly: Can you talk maybe perhaps about pipelines? Are you seeing any erosion in any of the pipelines, either on the M&A side or capital markets side, just given the uncertainty, any deals getting pulled? Or are the pipelines remaining robust, and it's just a matter of you know, getting the pig through the pipeline?

Speaker Change: Can you talk maybe perhaps about pipeline.

Speaker Change: Are you seeing any erosion in any of the pipelines either on the M&A side or capital markets side, just given the uncertainty any deals getting pulled or the pipeline's remaining robust and it's just a matter of them.

Speaker Change: You know getting a pig through the Python.

Rob Reilly: Yeah, sure, sure. The capital markets was a little lighter than what we expected, although still pretty good. For us, 40% of our capital markets category is Harris-Williams or M&A Advisory, and they actually had a very good quarter in line with expectations, whereas a little softer was in some of our foreign exchange and just some of our client activity. So when we look forward, Harris-Williams in particular, their pipeline right now is close to 20% higher than it was this time last year. So the pipelines look good, John, and they had a very good year last year.

Speaker Change: Yes sure sure.

Speaker Change: The capital markets with a little lighter than what we expected, although you know still pretty good.

Speaker Change: Yeah for US 40% of our capital markets are categories Harris Williams, our M&A advisory and they actually had a very good quarter in line with expectations, whereas a little softer was in some of our foreign exchange and just some of our client activity.

So when we look forward our.

Speaker Change: Harris Williams in particular their pipeline right now is close to 20% higher.

Speaker Change: Then it was this time last year.

Speaker Change: So the pipelines look good John.

Speaker Change: And they had a very good year last year. So we're encouraged by that.

John Pancari: So, you know, we're, we're encouraged by that. Okay, great. Thank you.

Speaker Change: Okay, great. Thank you.

Bill Carcache: Our next question comes from Bill Carcache with Wolf Research. Please proceed with your question. Thank you.

Speaker Change: Our next question comes from Bill car Kashi with Wolfe Research. Please proceed with your question.

Speaker Change: Thank you good morning, Bill and Rob I appreciate your commentary around the uncertain environment, leaving you to keep your reserve rate relatively flat. If we were to go down the mild recession path and unemployment rose slightly above 5%.

Bill Carcache: Good morning, Bill and Rob. I appreciate your commentary around the uncertain environment leading you to keep your reserve rate relatively flat.

Rob Reilly: If we were to go down the mild recession path and unemployment rose, say, slightly above 5%, can you speak to how you're thinking about the level of expense leverage that you have and what are the areas where you would look to achieve efficiencies should you need to? I can answer that. In terms of our expenses, we feel really great about the way that we've lined up the year. We've got positive operating leverage expenses up 1% off the 24 print. Naturally, if we get into a scenario where there's lower activity, some of that's self-correcting in terms of expenses associated with revenue that you wouldn't have.

Speaker Change: Can you speak to how you're thinking about the level of expense leverage that you have and what are the areas, where you would look to.

Speaker Change: Achieve efficiencies should should you need to.

Speaker Change: Well I can answer that I mean in terms of our expenses, we feel really great about the way that we've lined up the year, you'll get positive leverage.

Speaker Change: <unk> is up 1% off the at that 24 Trent.

Speaker Change: You know naturally if we get into a scenario, where there is lower activity some of that self correcting in terms of expenses associated with revenue that you wouldn't have.

Rob Reilly: But, you know, we're disciplined.

Speaker Change: But we are disciplined we wont back off the investments a bill that we've lined up.

Rob Reilly: We won't back off the investments bill that we've lined up, but, you know, there could be some opportunities if we get there, which we're not expecting to.

Speaker Change: There could be some opportunities if we get there, which we're not expecting too.

Rob Reilly: The other offset under, you know, some presumption that we actually went into a wild recession. And, you know, the forward curve is correct and there's you know four cuts this year. We actually have it with more cuts miled up you know an amount of upside in our NII just at the margin. So I I don't know that a mild recession dramatically changes our That's helpful.

Speaker Change: Yeah, the other offset under some presumption that we actually went into a.

Speaker Change: Mild recession.

Speaker Change: And you know the.

Speaker Change: Sure.

Speaker Change: Four curve is correct others four cuts this year, we actually have it.

Speaker Change: With more cuts mild.

Speaker Change: That amount of upside in our NII just at the margin. So I don't know that a mild recession dramatically changes our comp here.

Speaker Change: That's helpful. Thank you and it's interesting in light of all the commentary around how companies are putting investments on hold given the uncertain environment to see your spot utilization has been increasing since the beginning of the year.

Bill Carcache: Thank you.

Bill Carcache: And it's interesting in light of all the commentary around how companies are putting investments on hold, giving the uncertain environment to see your spot utilization has been increasing since the beginning of the year.

Speaker Change: Could you.

Bill Carcache: Could you speak to perhaps the potential for increased opportunities in loan growth if credit spreads were to continue to widen as capital markets become a less attractive option for some of your clients? Yeah, I'm going to go back and say this for a year.

Speaker Change: Speak to perhaps the potential for increased opportunities and loan growth if credit spreads were to continue to widen as capital markets become a less attractive option for some of your clients.

Speaker Change: Okay.

Speaker Change: Yeah, I'm going to go back and say this for a year.

Bill Carcache: It's not clear to me what... cause the utilization to go down. It's not entirely clear to me as to why it's going up. You know, if there is sort of some offset, you know, where capital market's new and slows down, then it's hard to get a loan.

Speaker Change: It's not clear to me what.

Speaker Change: Caused the utilization to go down it's not entirely.

Speaker Change: Clear to me as to why it's going up.

Speaker Change: You know it.

Speaker Change: If there is sort of some offset where capital markets new issuance slows down that is.

Speaker Change: The loan book.

Bill Carcache: But one of the reasons we leave it largely out of our forecast in terms of being a main driver, it's been a bit confusing for the last year.

Speaker Change: One of the reasons, we believe it largely out of our forecast in terms of being a main driver it's been a bit confusing for the last year or so.

Betsy Graseck: Thank you for taking my questions, Bill and Rob. Our next question comes from Betsy Graseck with Morgan Stanley.

Speaker Change: Thank you for taking my questions Bill and Rob.

Speaker Change: Sure.

Speaker Change: Our next question comes from Betsy <unk> with Morgan Stanley. Please proceed with your question.

Betsy Graseck: Please proceed with your question. Hi, good morning. Hi, Betsy. Hi.

Speaker Change: Hi, good morning.

Speaker Change: Hey, Betsy.

William Demchak: Bill, I did want to just ask a few questions regarding the president role, and I wanted to understand a little bit more about what you are expecting Mark to be doing for PNC, and I know there's many of us on the call who know Mark well with what he's been doing over at BlackRock for many years, but there might be others who are a little bit less familiar with him, so maybe you could help us understand why Mark is the right person for this role, and does this have, well, and how you anticipate he will be growing the business as president.

Bill Demchak: Bill I did want to just ask a few questions regarding.

Speaker Change: The president role and I wanted to understand a little bit more about what you are expecting a mark to be doing for P&C and.

Speaker Change: There's many of us on the call, who know mark well with what he's been doing over at Blackrock for many years, but there might be others, who were a little bit less familiar with him. So maybe you could help us understand why mark is the right person for this role and does this have them well and how you anticipate he will be growing the business.

William Demchak: Thank you. No, thank you for the question, Betsy. You know, I've known Mark for a lot of years, going back to, you know, being on the board of BlackRock, and we actually had he and his financial advisory team come in here at one point, you know, during or shortly after the crisis, just to double check everything we were doing on the balance sheet. Mark's gonna come in and be the president, and he's gonna run our businesses. He comes in with a broad-based skill set. He's managed through crises. He's advised on balance sheets. He's a student of the markets.

Speaker Change: As president Thank you.

Betsy: Thank you for the question Betsy.

Speaker Change: You know I've.

Speaker Change: No embark for a lot of years going back to.

Speaker Change: Being on the board of Blackrock could we actually.

Speaker Change: He he and his financial advisory team come in here at one point.

Speaker Change: Shortly.

Speaker Change: Shortly after the crisis just to double check everything we're doing on the balance sheet marks are going to come in and be the precedent and he's going to run our businesses.

Speaker Change: He comes in with a broad based skill set.

Speaker Change: <unk> managed through crises.

Advised on balance sheets as a student of the markets. These tech forward he's been with a fast growing company in.

William Demchak: He's tech forward. He's been with a fast-growing company. I mean, he's a great talent. And it was kind of serendipity that he was available. You know, we have a super strong team here, but when you see talent like that available, you add it. And I don't know what's any more complicated.

Speaker Change: And he's a great talent.

Speaker Change: And it was kind of serendipity.

Speaker Change: He was available.

Speaker Change: Super strong team here, but when you see talent like that available.

Speaker Change: You add it.

Speaker Change: I don't know if its any more complicated than that.

William Demchak: Okay, I'm just also wondering about the opportunities for doing more with private credit. I don't know if that's part of the equation here as well, given what you're doing already with private credit side and what Mark brings to the table. Yeah, it's, it's, um...

Speaker Change: Okay, and just also wondering about the.

Speaker Change: Opportunities for.

Speaker Change: Doing more with private credit I don't know if that's part of the equation here as well.

Speaker Change: Given what you're doing already with private credit side, and what Mark brings to the table there.

Speaker Change: It's.

William Demchak: You know, Mark is a well-rounded student of finance and markets and management and leadership. You know, it was interesting, we were talking to the press about this. We got questions on, oh, does this mean we're going to go big into asset management or private credit or private equity or something else? And the answer to that is no, we're going to do exactly what we're doing, and he's adding skill sets to what we're doing today. There's no change in our strategy, there's no change in who we want to be or how we're going to execute. He's just going to help us with that.

Speaker Change: You know Mark is a well rounded student finance and markets and management and leadership.

Speaker Change: It was interesting we were talking to the press about this we got questions. Now does this mean, we're going to go big into asset manage better private credit or private equity or something else and he answered that it's no. We're going to do exactly what we're doing is adding skill sets to what we're doing today.

Speaker Change: There's no change in our strategy. There is no change it we want a bigger how we're going to execute you just could help us with our game plan.

Betsy Graseck: Thanks very much.

Speaker Change: Thanks very much.

Speaker Change: Yes.

Scott Sifers: Our next question comes from Scott Sifers with Piper Sandler. Please proceed with your question. Morning, guys. Thanks for taking the question.

Speaker Change: Our next question comes from Scott Cyphers with Piper Sandler. Please proceed with your question.

Scott Cyphers: Good morning, guys. Thanks for taking the question.

Rob Reilly: Rob, I think in the past, you've talked about a 3% margin by the end of the year, kind of feels to me like based on the first quarter result, maybe you got out of the gates a bit quicker than you would have thought, which is helpful, but you know, just sort of given all the moving parts these days, maybe if you could sort of refresh your thoughts on, you know, that number and anticipated path to get there, I can put together a couple of the pieces with what Bill had said about the, you know, the forward curve, more rate cuts, etc.

Speaker Change: Rob I think in the past you've talked about a 3% margin by the end of the year. It kind of feels to me like based on the first quarter result, maybe you got out of the gates a bit quicker than you would've thought which is helpful. But just sort of given all the moving parts. These days, maybe if you could sort of refresh your thoughts on.

Speaker Change: You know that number and anticipated path to get there I can put together a couple of the pieces with what Bill had said about the forward curve more rate cuts et cetera, but would be curious to hear your thoughts.

Rob Reilly: But would be curious to hear your thoughts. Yeah, sure, Scott. You know, we talked about this on every earnings call that we don't give official NIM guidance, but then I give NIM guidance. So, you know, if he's wrong. Yeah, that's right. That's right. Yeah, that's right. Thanks, Bill. So, yeah, so we got out of the gate pretty good there at the 278 that you saw in the first quarter. You know, we said at the beginning of the year, and we still feel that we can approach 3%. So I think, you know, the 290 range is reasonable in the fourth quarter.

Speaker Change: Yeah sure Scott that.

Speaker Change: Now we talked about this on every earnings call that we don't give official NIM guidance, but then I give NIM guidance. So [laughter].

Speaker Change: Yeah.

Speaker Change: If he's wrong, yeah, that's right that's right that's right. Thanks Bill.

Speaker Change: So yeah. So we are we got out of the gate pretty good there at the 278 that you saw in the first quarter. You know, we said at the beginning of the year and we still feel that we can approach 3%. So I think the end of the 290 range is reasonable.

Speaker Change: In the fourth quarter.

Speaker Change: Okay.

Rob Reilly: Perfect.

Speaker Change: Perfect. Okay. Thank you and then maybe just a little bit of a tiki Tak one the.

Rob Reilly: Okay, thank you.

Rob Reilly: And then maybe just a little bit of a ticky-tack.

Scott Sifers: One, the slightly higher net charge-off expectation into the second quarter. I mean, it's not huge by any means, but, you know, it's a little higher than you've run recently.

Speaker Change: Slightly higher net charge off expectation into the second quarter I mean, it's not huge by any means but you know it's a little higher than you you've done recently any anything particular driving that or is that just kind of standard normalization.

Rob Reilly: Anything particular driving that, or is that just kind of standard normalization? No, no, there is something particular to that, Scott. So thanks for that question. It's really the lumpiness of the CRE office charge-offs. So when you look at our information, they were down pretty good in the first quarter. But that's a situation where it's a handful of deals that can either sort of fall, timing-wise, into one quarter or another quarter. So we'd expect those charge-offs to go back to the levels that we were experiencing in the third and fourth quarter. And that's part of the 300 guide.

Speaker Change: Now there is something particular that Scott said, thanks for that question, it's really the Lumpiness of the CRE office charge offs. So when you look at our information they were down.

Speaker Change: Pretty good in the first quarter.

Speaker Change: But that's a situation where it's a handful of deals that can either sort of fall timing lines into one quarter or another quarter. So we'd expect that as charge offs to go back to the levels that we were experiencing in the third and fourth quarter and that's part of the 300 guidance.

Scott Sifers: Okay. Well, stuff is. Reserve. Yeah, that's right. Yeah, okay, perfect. All right, thank you very much.

Speaker Change: Alright.

Speaker Change: Stuff is.

Speaker Change: Yes, that's right.

Speaker Change: Yeah, Okay perfect alright, thank you very much.

Speaker Change: Sure.

Ebrahim Poonawala: Our next question comes from Ebrahim Poonawala with Bank of America. Please proceed with your question.

Speaker Change: Our next question comes from Abraham Pruned Waller with Bank of America. Please proceed with your question.

William Demchak: Good morning. I guess maybe... So you talked about loan growth and sort of client sentiment there. Just talk to us around the fragility across the customer base, be it consumer or commercial, given concerns, maybe we are in a recession, we could fall into a recession. I'm just wondering how you look at the balance sheets for your customers and like how bad do things need to go where the credit outlook deteriorates in a meaningful way?

Speaker Change: Good morning.

Speaker Change: I guess maybe.

Speaker Change: So you talked about loan growth and sort of client sentiment dead just talk to us around.

Speaker Change: The agility across the customer base bead consumer or commercial.

Speaker Change: Given concerns maybe we ought to know recession, we would fall into a recession and I'm. Just wondering how you look at the balance sheets for your customers and like.

Speaker Change: How bad do things need to go away the credit outlook deteriorates in a meaningful way.

Speaker Change: Okay.

Speaker Change:

William Demchak: You know, the easiest way to think about this maybe is, is, you know, between today and three weeks ago, nothing's changed. What's what's happened, though, is everyone's trying to figure out what the steady state will be with tariffs and how they need to, if at all, change the business model to succeed inside of a world with tariffs. you know, it is without question slowed down activity in the near term as people try to figure this out, but it hasn't yet turned into... you know, any sort of credit deterioration, nor, you know, just given the quality of our book, nor do I think it's a, you know, dramatic outcome for clients, unless those very tariffs drive us into a steep recession, you know, and then we're going to have a standard credit Got it.

Speaker Change: The easiest way to think about this maybe as between today and three weeks ago Nothing's changed what's what's happened though.

Speaker Change: As everyone's trying to figure out.

Speaker Change: What the steady state will be with tariffs and how they need to if at all changed business model.

Speaker Change: To succeed inside of a world with tariffs so.

Speaker Change: You know it is without question slow down activity in the near term as people try to figure this out but it hasn't yet turned into.

Speaker Change: Yeah.

Speaker Change: Any sort of credit deterioration nor.

Speaker Change: Just given the quality of our book.

Speaker Change: Nor do I think it's.

Speaker Change: Dramatic outcome for clients unless.

Speaker Change: Those very terrorists drive us into.

Speaker Change: Steep recession.

Speaker Change: And then we're going to have a standard credit cycle.

Speaker Change: Got it and I guess, maybe at all for you you mentioned.

Rob Reilly: And I guess maybe, Rob, for you, if you mentioned the... where the name may exit, I guess, 25.

Speaker Change: With the NIM may exit I guess 25.

Rob Reilly: Just talk to us about how you're thinking about balance sheet management from an Alco perspective. You took some actions, I guess, middle or late last year to lock in the NII or the record NII for 25. I'm just wondering. How are you thinking about like from a cash or the bond book, are there things that you're doing as you think about just the forward outlook beyond 25? Yeah, sure. So, so as we said, you know, 25 is pretty locked in. And that's why we're confident in terms of our guidance. I will remind everybody that our NII guidance for the full year doesn't have a whole lot of loan growth.

Speaker Change:

Speaker Change: Talk to us about how you're thinking about balance sheet management from an Alco perspective, you took some actions I guess middle or late last year to lock in DNI, although they can deny put 25 I'm just wondering.

Speaker Change: How are you thinking about like from a cash or the bond book.

Speaker Change: Things that Youre doing as you think about just the forward outlook beyond 'twenty five.

Speaker Change: Yes sure. So so as we said you know 25 is pretty locked in and that's why we're confident in terms of our guidance.

Speaker Change: I will remind everybody that our NII guidance that full year doesn't have a whole lot of loan growth so with that path.

Rob Reilly: So if that happens, that'll be on top. So, you're right, where our eyes are now is sort of the outer years into 26 and beyond. And we have taken some actions to lock in that, which is the continuation of the fixed rate asset repricing that we're on. So that's where our heads are, and that's where the focus is.

Speaker Change: And that'll be on top of that.

Speaker Change: So you're right, where our eyes are now is sort of the outer years into 26 and beyond and.

Speaker Change: And we have taken some actions to lock in that which is a continuation of the fixed rate asset repricing.

Speaker Change: That we're all so.

Speaker Change: That's where our heads are and that's where the focus is.

Mike Mayo: Thank you. Our next question comes from Mike Mayo with Wells Fargo.

Speaker Change: Got it thank you.

Speaker Change: Okay.

Speaker Change: Our next question comes from Mike Mayo with Wells Fargo. Please proceed with your question.

Mike Mayo: Please proceed with your...

Mike Mayo: Hi, I had a follow-up on the question about the new president, Mark Weidman. You described So I think he said. exactly what you are doing currently at PNC is what you'll still be doing. So my question to you is.

Speaker Change: Hi, I had a follow up on the question about the new President Mark Wiedman, you've described.

Speaker Change: I think he said.

Speaker Change: Exactly what you are doing.

Speaker Change: Currently in P&C is but you'll still be doing.

Speaker Change: So my question to you is.

William Demchak: How did you get him? I mean, there's so many people leaving the bank industry for private equity and non banks and fintech and sometimes anywhere they can get to. And so why is he coming to such a heavily regulated industry with so much oversight with so much skepticism with so much? so much questioning.

Speaker Change: How do you get them I mean, there's so many.

Speaker Change: People, leaving the bank industry for private equity and non banks and Fintech and some.

Speaker Change: Found anywhere they can get to.

Speaker Change: And so why.

Speaker Change: Is he coming to such a heavily regulated industry with so much oversight with so much skepticism with so much.

Speaker Change: With so much questioning if this.

William Demchak: You know it's a slog, being in the banking industry, and he's choosing to come, so what in the world was your sales pitch to him, to get him to come, to keep PNC doing exactly what it's doing? I mean, you'll get to ask him that question at some point, Mike, but I think it's as simple as saying that what's going on in banking today is fascinating. It's not my dad's bank. It's driven by technology. There's scale matters. We have new entrants coming in all sides of what we do, which can be exciting or dangerous, depending on how you look at it.

Slog and being in the banking industry and he's choosing to come so what in the world was yourself pitch to him to get him to come to <unk>.

Speaker Change: P&C doing exactly what it's doing.

Speaker Change: Oh.

Speaker Change: You'll get to ask him that question at some point, Mike, but I think it's as simple as saying that whats going on in banking today is fascinating.

Speaker Change: It is it's not you know my Dad's bank it is driven by technology theirs.

Speaker Change: Scale matters, we have new entrants come in at all sides of what we do which can be exciting or or or dangerous depending on how you look at it you know you think true crypto private credit.

William Demchak: You think through crypto and private credit and payment engines and all the other things that are happening. It's a very dynamic place, withstanding all the oversight we get. I'm sure Mark is listening to this call and not wondering what he got himself into.

Speaker Change: Payment engines at all the other things that are happening, it's a very dynamic place.

Speaker Change: Withstanding.

Speaker Change: You know all the oversight we get.

Speaker Change: I'm sure Mark is listening to this call are not wondering but he got them.

Speaker Change: Right.

Speaker Change: Okay.

William Demchak: You mentioned scale matters and the first time you said that, what's your current appetite for getting that greater scale? You said scale matters more than ever before, I think, in the history of banking. We have not seen that much consolidation, I imagine.

Speaker Change: You mentioned scale matters and you're not the first time, you said that.

Speaker Change: And what's your current appetite for getting that greater scale, you said scale matters more than ever before I think in the history of banking, we have not seen that much consolidation.

Speaker Change: I imagine so what where do you stand.

William Demchak: So where do you stand? I don't think you're gonna see it in the near future either. You know, a couple of things, scale matters, we can get that through organic growth and we're executing on that.

Speaker Change: I don't think youre going to see it in the near future either cut.

Speaker Change: Couple of things scale matters, we can get that through organic growth and were executing on that.

Speaker Change: Aye.

William Demchak: talk too much about, you know, the long term future and people want to seem to think about next quarter. In the long run, I think there's going to be big consolidation in the banking industry. We see how you know, the speed of growth of the very giant banks. And so I think scale matters. I think in the course of that consolidation, if we outperform in our organic growth, we will have the right to be an acquirer. In today's world, for a variety of different reasons, not the least of which is we wouldn't issue our shares at these prices, at these relative prices.

Speaker Change: Talk too much about you know the long term future and people want to seem to think about next quarter in the long run I think there's going to be big call. It consolidation in the banking industry, we see how.

Speaker Change: The speed of growth of the very giant banks, and so I think scale matters I think in the course of that consolidation, if we outperform and or in our organic growth. We will have the right to be an acquirer.

Speaker Change: In today's world.

Speaker Change: You know for a variety of different reasons.

Speaker Change: Not the least of which is we wouldnt issue our shares at these price that these relative prices.

William Demchak: Nobody's a seller and to try to do a deal with the volatility going on in rates right now and the potential mark on credit makes it impossible.

Speaker Change: Nobody is a seller.

Speaker Change: So try to do a deal with the volatility.

Speaker Change: Going on in rates right now and the potential Mark credit makes it impossible.

William Demchak: So I need to just shut up about doing deals because I kind of talk about what happens over the next 10 years and everybody thinks it's next quarter. Yeah. And it isn't. You know, in the meantime, we're growing just fine. We have lots of capital, you know, and ability to support our clients and we're likely going into an environment where being a bank is a pretty important thing for the U.S. economy and we'll take advantage of that.

Speaker Change: So I need to just shut up about doing deals because I kind of talk about what happens over the next 10 years and everybody thinks this next quarter that months and it isn't.

Speaker Change: In the meantime, we're grown just fine we have lots of capital.

Speaker Change: And ability to support our clients and we're likely going into an environment, where being a bank.

Speaker Change: It's a pretty important thing for the U S economy, and we will take advantage of that.

William Demchak: Last short follow-up, you said you would not issue shares at this price, so does that mean you would be accelerating share buyback? That's a pretty good assumption. All right. Thank you.

Speaker Change: Last short follow up you said you would not issue shares at this price. So does that mean, you would be accelerating share buybacks.

Speaker Change: It's a pretty good assumption.

Speaker Change: Okay.

Speaker Change: Alright, thank you.

Speaker Change: Yes.

Ken Usdin: Our next question comes from Ken Usdin with Autonomous Research. Please proceed with your question. Hey, good morning. I was just wondering, obviously, you talked about, in the first quarter, we saw a little bit softer capital markets, M&A and trading. And there's, there's obviously expectation in the guide that things get better from here, albeit with the uncertainty.

Our next question comes from Ken Osborne with Autonomous Research. Please proceed with your question.

Ken Osborne: Hey, good morning.

Speaker Change: I was just wondering.

Ken Osborne: Obviously, you talked about.

Speaker Change: The first quarter, we saw a little bit softer capital markets M&A and trading and there is it occupancy expectation in the guide that things get better from here, albeit with the uncertainty. So can you just talk us through like just how that advisory outlook feels and I guess, maybe if you flush out the fees a little bit more just what expectations to go drive that second that.

Rob Reilly: So can you just talk us through like, just how that advisory outlook feels? And I guess maybe if you flesh out the fees a little bit more, just what expectations, you know, drive that second, that kind of from here improvement that's in the full year guide. Thanks.

Ken Osborne: From here improvement that's in the full year guide thanks.

Rob Reilly: Yeah. Hey, sure, Ken. It's Rob. So, in regard to the full year fee guide, just in terms of our categories, the way that we report them, they're largely similar to what we thought at the beginning of the year, you know, albeit in the first quarter, you know, asset management did a little better than we thought, capital markets a little bit less. But, you know, when we look at the full year, it still sort of holds asset management, mid-single digits, capital markets, mid-single digits, maybe a little bit better if the pipelines all pull through. Card and cash management, which is our steady eddy, is, you know, solidly mid-single to higher single digits.

Ken Osborne: Yeah, Hey, Shar cabinets, it's Rob so in regard to the full year fee Guy just in terms of our categories. The way that we report them.

Ken Osborne: They're largely largely similar to what we thought at the beginning of the year.

Ken Osborne: Albeit in the first quarter asset management did a little better than we thought capital market's a little bit less but.

Ken Osborne: Yeah, when we look at the full year, it's still sort of holds asset management mid single digits.

Ken Osborne: Capital markets mid single digits, maybe a little bit better if the pipelines all pull through.

Ken Osborne: Card and cash management, which is our steady Eddie as you know.

Ken Osborne: Solid lead mid single to high single digits.

Rob Reilly: lending and deposit services, low single digits, and mortgage, as we said, you know, we expect to be down maybe as much as 10% or more. So when you put all that together, you get the mid-single digits that we were expecting, you know, at the beginning of the year.

Ken Osborne: Lending and deposit services low single digits in mortgage as we said, we expect to be down maybe as much as 10% or more so when you put all that together you get the mid single digits that we were expecting.

Ken Osborne: At the beginning of the year.

Rob Reilly: Okay, great, thank you.

Speaker Change: Okay, great. Thank you.

Rob Reilly: And then just one question on the deposit side, getting to this point of stability and DDAs and such, but when you think about the new rate environment, what do you see as far as your ability to continue to ratchet down deposit pricing and what do you think the mix of deposits looks like as well? Thank you. Well, I'd say I'd start with the second part of that question. As far as the mix goes, we're at 22% of non-interest bearing. And we've been pretty stable there for a while and expect that to continue. You know, all else being equal, we do expect that, you know, our rate paid will be going down over the course of the year, not dramatically, but you know, gradually and steady that we've been on for some time.

Ken Osborne: And then just one question on the deposit side.

Ken Osborne: Getting to this point of stability D D A's and such but when you think about the new rate environment. What do you what do you see as far as your ability to continue to ratchet down deposit pricing and what do you think the mix of deposits looks like as well. Thank you.

Speaker Change: Well I'd say I'd start with the second part of that question first as far as the Mexico, we're at 22% of noninterest bearing.

Speaker Change: And we've been pretty stable there for a while and expect that too to continue you know all else being equal we do.

Speaker Change: Spect that are in our rate paid will be going down.

Speaker Change: Over the course of the year not dramatically, but gradually and steady that we've been on for some time, so that's still our thinking.

Rob Reilly: So that's still our thinking. Okay, thanks, Rob.

Speaker Change: Okay. Thanks, Rob.

Speaker Change: Sure.

Erika Najarian: Our next question comes from Erika Najarian with UBS. Please proceed with your question. Hi, good morning. Just a few follow-up questions. So Bill, nobody really asked this question much until we saw the Mike Lyons announcement.

Speaker Change: Our next question comes from Erika Najarian with UBS. Please proceed with your question.

Erika Najarian: Hi, Good morning, just a few follow up questions. So bill you know nobody really ask this question much until we saw the Mike Lyons announcement, but to follow up with all the questions about Mark you know how much time.

William Demchak: But to follow up with all the questions about Mark, how much time are you going to give PNC in your current role, do you think, as we think about the succession planning? How long am I going to be here? Yeah, I mean, I guess, I mean, that's a very direct question, clearly, but you know, Jamie Dimon often talks about being around for a few more years. You know, I often have to look up your age because you always look so much younger than your actual age. I always think you're like 52. I'm only 52. I could be around for a while.

Speaker Change: Are you going to give PNC in your current role do you think as we think about the succession planning.

Erika Najarian: Yeah.

Erika Najarian: I mean, how long I'm not going to be here.

Erika Najarian: Yeah definitely I.

Erika Najarian: I mean, I guess I mean, it's a very direct question clearly, but you know Jamie Diamond often talks about being around for a few more years you know I often have to look up your age is you always look so much younger than your actual age I always thank you were like 52.

Erika Najarian: So to be around for a while.

William Demchak: Okay, that's great. That's the answer I think your investors wanted to hear. Because I, you know, given the announcement of Mark coming in, I think that question ramped back up.

Erika Najarian: Okay. That's great. That's the answer I think your investors wanted to hear because I you know given given the announcement of Mark coming in right I think that that question ramp back up. So that was that was the first question, okay, you'll be around for a while they're on the second second question is a quick follow up Rob I am sorry, if I missed this during prepared remarks.

William Demchak: So that was the first question. Okay, you'll be around for a while. Fair.

Rob Reilly: Second question is a quick follow up. Rob, I'm sorry if I missed this during prepared remarks, but what is the unemployment rate that your reserve is implying in terms of what it's built on? Yeah, right now, Eric, in terms of our economic scenarios, we're just at 5%. But recall, you know, we've got reserves that are beyond that for things such as tariffs on top of those modeled outcomes. Got it. Okay.

Erika Najarian: But what is the unemployment rate that your reserve is.

Erika Najarian: Implying in terms of what it is built on.

Erika Najarian: Yeah, right now Erika in terms of our economic scenarios, we're just at 5%.

Erika Najarian: But recall you know we've got reserves that are beyond that for things such as tariffs.

Erika Najarian: On top of those modeled outputs.

Erika Najarian: Got it okay. Thanks, guys.

Rob Reilly: Thanks, guys.

Gerard Cassidy: Our next question comes from Gerard Cassidy with RBC Capital Markets. Please proceed with your... Thank you.

Speaker Change: Our next question comes from Gerard Cassidy with RBC capital markets. Please proceed with your question.

Gerard Cassidy: Hi, Bill. Hi, Rob. Robert, can you share with us, you guys have done a good job in attacking your commercial real estate challenges and working through that portfolio, and at the same time you've been able to keep your Non-interest expense growth in check. Can you, can you carve out of that, what is it costing you to work through these commercial real estate problems? So, none of us expect them to end anytime real soon, but are there some expense savings coming once you get through that process in a couple of years? Maybe. Oh, maybe a little on the margin, Gerard, but that's not that's not a big driver.

Speaker Change: Thank you Hi, Bill Hi, Rob.

Speaker Change: Hey, Derek.

Speaker Change: Can you share with US you guys have done a good job in attacking your commercial real estate challenges and working through that portfolio.

Speaker Change: And at the same time, you've been able to keep your noninterest expense growth in check.

Speaker Change: Can you can you carve out of that what is it costing you to work through these commercial real estate problem. So none of us expect them to end anytime real soon but are there some expense savings coming once you get through that process and a couple of years maybe.

Speaker Change: Oh, maybe a little on the margin Gerard, but that's not that's not a big driver.

Rob Reilly: We've got some pretty talented bankers that when we work through that, we'll have other things for them. Got it. Okay.

Speaker Change: We've got some pretty talented bankers that are when we work through that we'll have other things for them to do.

Erika Najarian: Got it Okay, and then a broader question Bill on your comment about share repurchases can you give us your.

William Demchak: And then brought a question, Bill, on your comment about share repurchases.

William Demchak: Can you give us your thoughts and opinions about what's going on in the regulatory environment? We have a number of nominees for the different regulatory agencies. The Treasury Secretary has been quite outspoken about having the regulations eased up a bit. What are your thoughts on that? And could that influence even more buybacks once you get to know what your CET-1 ratio could be after Basel III endgame comes out? You know, my guess at the margin is our capital needs. you know, will be less in the future than it is today, although. I think, you know, the immediate changes we're likely to see in regulation, a lot of talk on the SLR, which calmed the treasury markets down a little bit.

Erika Najarian: Thoughts and opinions about what's going on in the regulatory environment, we have a number of nominees for the different regulatory agencies. The Treasury Secretary has been quite outspoken about having the regulations ease up a bit.

Erika Najarian: What are your thoughts on that and could that influence.

Erika Najarian: Is it even more buybacks when did you get to know what your CET one ratio could be after Basel III and game comes out.

Erika Najarian:

Erika Najarian: My guess at the margin as our capital need.

Erika Najarian: You don't want be less in the future than it is today all else equal.

Erika Najarian: I think the immediate changes or like to likely to see in regulation.

Erika Najarian: A lot of talk on the SLR, which call.

Erika Najarian: Treasury markets down a little bit.

William Demchak: you know, some refocus from all the regulators on the core risk in a bank. So that's a supervision thing that doesn't change capital, but rather changes behavior. And at the margin, that's a good thing for us. Maybe save a little bit of money on some of the things we're doing. be done.

Erika Najarian: You know some some refocus from all the regulators on the core risk in a bank. So that's a supervision thing that doesn't change capital, but rather changes behavior at the margin. That's a good thing for us.

Erika Najarian: Maybe you save a little bit of money.

Erika Najarian: The things that we're doing that.

Erika Najarian: We don't need them.

William Demchak: But I don't know that there's a massive change that's ahead.

Erika Najarian: But I don't know that there's a massive change that said for us.

Rob Reilly: Okay, and can you just remind us your, you know, obviously your CET1 ratio is similar to your regional peers in terms of the minimum, and what kind of comfort, or what kind of buffer do you guys like to keep above that required level?

Erika Najarian: Okay and then.

Speaker Change: Can you just remind us your.

Erika Najarian: Obviously your CET one ratio.

Erika Najarian: Similar to your regional peers in terms of the minimum and what kind of comfort or what kind of buffer do you guys like to keep it above that required level.

Rob Reilly: Hey, Gerard, it's Rob. So, you know, a couple of things on that. Just to finish up on that answer that Bill gave, you know, obviously, you know, once things settle down in terms of where all the rules come, you know, we can then take an assessment in terms of where our actual targets are. So, you know, we've got a lot of capital flexibility, we continue to build capital, we need to see those things settle down, and then we can zero in on a target. Very good. Thank you, Rob.

Erika Najarian: Oh, Hey, Hey, Gerard it's Rob So a couple of things on that just to finish up on that answer that Bill gave you know obviously.

Erika Najarian: Once things settle down in terms of where all the rules come. We can then take that assessment in terms of where our actual targets are.

Erika Najarian: So we've got a lot of capital flexibility, we continue to build capital we.

Erika Najarian: We need to see those things settle down and then we can zero in on that target.

Erika Najarian: Very good thank you Rob.

Rob Reilly: As a reminder, So just before we jump to another question, that comment kind of where we are, where our peers are. I mean, I would just remind everybody that our drawdown in CCAR, you know, has been through time less than basically anybody in the peer group. So, you know, we're starting from a point with the SEB that Yeah, sorry. And Gerard, that goes back to, you know, back to a few years ago when we were all focused on this, the correct peer comparison, in our view, is the post-stress capital levels. Yeah. Very good, thank you.

Speaker Change: As a reminder.

Erika Najarian: I'm sorry.

Erika Najarian: So it just before we jump to another question that comment kind of where you are where our peers are I mean, I would just remind everybody that our drawdown in CCAR.

Erika Najarian:

Erika Najarian: Has been true time less than basically anybody in the peers. So you know we're starting from a point with the SCB that.

Erika Najarian: In effect penalizes us when we build our capital ratio versus others.

Erika Najarian: And.

Erika Najarian: That's unlikely to change the way we run our bank.

Gerard Cassidy: And Gerard that goes back to you now.

Erika Najarian: Back to a few years ago. When we were all focused on this.

Erika Najarian: The correct peer comparison in our view is the post stress capital buffers yeah.

Erika Najarian: Very good thank you.

Erika Najarian: Okay.

Operator: As a reminder, if you'd like to ask a question, please press star 1 on your telephone. One moment, please, while we poll.

Speaker Change: As a reminder, if you'd like to ask a question. Please press star one on your telephone keypad one moment, please while we poll for questions.

Erika Najarian: Okay.

John Mcdonald: Our next question comes from John McDonald with Truist Securities. Please proceed. Hey, guys, a couple of quick clarifications. Just sorry, one more on the buyback.

Speaker Change: Our next question comes from John Mcdonald with Truest Securities. Please proceed with your question.

Speaker Change: Hey, guys couple of quick clarifications, just sorry, one more on the buyback. So the idea is buybacks accelerating rob but within the context of your capital ratio is still growing a bit near term until you get more clarity.

Rob Reilly: So the idea is buybacks accelerating, Rob, but within the context of your capital ratio still growing a bit near term until you get more clarity. Yeah, that's right. In regard to the share buyback, so we bought more in the first quarter than we had in the previous quarters. It's our expectation in the second quarter that we'll do more, to Bill's point, because we really like the share price. But we're not talking about a step change. You know, some more, but nothing that sort of breaks the current path. Okay, got it. And then on the fee income outlook for the year, you mentioned in the beginning comments, were you just pointing out the obvious risk that you've got some market-sensitive fees in there and it kind of depends on the macro?

Speaker Change: Yeah, that's right in regard to the share buybacks that we bought more in the first quarter than we had in the previous quarters. It's our expectation in the second quarter that will do more to Bill's point, because we really like the share price, but we're not talking about a step change.

Speaker Change: Yeah, some more but nothing that sort of breaks the current path.

Okay got it and then on the fee income outlook for the year you mentioned in the beginning comments, we just pointing out the obvious risk that you've got some market sensitive fees in there and it kind of depends on the macro.

Rob Reilly: Yeah, that's right.

Speaker Change: Yeah, that's right.

Rob Reilly: Okay, and then maybe just a quick update strategy-wise, just how things are going on the national expansion and some of the consumer initiatives, the new card product.

Speaker Change: Okay, and then maybe just a quick update of strategy wise, just how things are going on the national expansion in some of the consumer initiative is the new card product.

William Demchak: So do you want to answer that, Bill, on the new markets and then I can circle back on the capital? We're having a sidebar.

Speaker Change: So do you want to answer that bill on the new markets and then I can circle back on the on the cabinets, where we're having a sidebar again I ask you to re ask that question. So bill we'd like to buy more shares, which we're going to definitely do that.

Rob Reilly: I'm going to ask you to re-ask that question. So Bill would like to buy more shares, which we're going to definitely do. The answer to your question was it doesn't break the bills in our capital. Yeah. So it's, it's, yeah, you'll see a level change in what we have been buying, but we'll still. track got growing cap. It's particularly the AOCI polling that's as close as possible.

Speaker Change: Answer to Mike as you. Your question was it doesn't break build and our capital levels.

Speaker Change: So it's yes.

Speaker Change: You'll see a level of change in what we have been buying but will still grow.

Speaker Change: Yep track outgrowing kind of correct.

Speaker Change: Particularly the OCI Poland Basel.

Speaker Change: Basel.

Speaker Change: Yes.

William Demchak: So I ask you a question. The new markets and expansion markets, how are they? We're driving our growth across all lines of business. Our DDA customer growth, that customer growth is coming from new markets. Our net inflows and wealth, basically, we're driven. by new markets and they've continued to outproduce on a relative basis, our legacy markets even as our legacy markets grow. really work. And also THC and our corporate bank. So that gets to these, John, where we continue to grow loan commitments even though they're not funded. which bodes well for future loan growth. The majority of that was coming through the expansion market.

Speaker Change: So ask your question.

Speaker Change: That the new markets and expansion markets how are they going.

Speaker Change: We are driving our growth.

Speaker Change: Yeah.

Speaker Change: All lines of business are our DDA customer growth that.

Speaker Change: Our growth is coming from new markets, our net inflows in wealth.

Speaker Change: Basically were driven.

Speaker Change: By new markets and they've continued to.

Speaker Change: Oh produce on a relative basis, our legacy markets, even as our legacy markets grow.

Speaker Change: It's really work and also in our corporate bank.

Speaker Change: So that gets at these.

Speaker Change: John where we continue to grow loan commitments, even though theyre not funded.

Speaker Change: Which bodes well for future loan growth the majority of that was coming through the expansion markets this quarter.

William Demchak: Got it.

William Demchak: That's helpful.

Speaker Change: Got it that's helpful. Robyn you're going to just make a comment on the card book and how that's going with the new product and credit card.

Rob Reilly: Rob and you were going to just make a comment on the card book and how that's going. product and credit card. Oh, credit. Yeah, it's going great. Yeah, going great. We continue to grow customer count there. So, you know, excited about the trajectory.

Robyn: Yes, it's going great going great, we continue to grow customer count there so.

Speaker Change: Cited about the trajectory there.

Robyn: Thanks.

Matt O'connor: Our next question comes from Matt O'Connor with Deutsche Bank. Please proceed with your question. Good morning. Just to follow up on the rate sensitivity, I think you said, you know, little impact from if rates are a little bit higher or lower than what you expected.

Robyn: Our next.

Speaker Change: Question comes from Matt O'connor with Deutsche Bank. Please proceed with your question.

Matt O'connor: Good morning, just to follow up on the rate sensitivity I think you said little impact from.

Matt O'connor: If rates are little bit higher or lower than what you expected, but just conceptually how is the balance sheet positioning here.

Rob Reilly: But just conceptually, how is the balance sheet position here for movements on both the short and long end as we think about more medium-term? And then kind of what's the goal? Like you talked about walking in some of the fixed-rate assets in the next couple of years, but which way are you trying to lean? Thanks. lot embedded in that question. We are at the margin, better off if there are more cuts in the front end than we currently have in our forecast, which I think is at 2. So at the margin better off this year is a function of.

Matt O'connor: For movements on both a short and long run as we think about more medium term and then kind of what's the goal.

Matt O'connor: Talked about locking in some of our fixed rate absolutely price in the next couple of years, but.

Matt O'connor: Which way are you trying to lean.

Matt O'connor: Yeah.

Matt O'connor:

Matt O'connor: Theres a lot embedded in that question.

Matt O'connor: We are at the margin.

Matt O'connor: Or off if there are more cuts in the front of it that way.

Matt O'connor: We have in our forecast, which I think is it too.

Matt O'connor: We're going to probably increase that.

Matt O'connor: So at the margin better off this year is a function of more cuts.

Rob Reilly: Ultimately, you know, where the trajectory of NII continues to grow, you know, 25, 26, even 27, is a function of term rates staying high. At the moment, they're higher than we had assumed in our forecast. you know, what we've been doing, you know, the forward starting swaps this quarter is locking in some of that known outcome in 26. And, and that's kind of the way we're like, if everything stayed just where it was, you know, with with the forward curve, we'd be great. So it's, let's realize that because, you know, that's a, that's a big improvement over the course of the next several years.

Matt O'connor: Ultimately.

Where the trajectory of NII continues to grow.

Matt O'connor: 'twenty five 'twenty six 'twenty seven is a function of term rates staying high.

Matt O'connor: At the moment there are higher.

Matt O'connor: You know that we had assumed that are in our forecast so.

Matt O'connor: You know what we've been doing.

Matt O'connor: The forward starting swaps this quarter is locking in some of that node outcome in 'twenty six.

Matt O'connor: And that's kind of the way were like if everything stayed just where it was.

Matt O'connor: With the forward curve, we would be great.

Matt O'connor: So it's less.

Matt O'connor: Lets realize that because.

Matt O'connor: That's a big improvement over the course of the next several years and that's how we're running the balance sheet today.

Rob Reilly: And that's how we're running the balance sheet today. Obviously, taking what we yielded.

Matt O'connor: Obviously.

Matt O'connor: Okay.

Rob Reilly: Yeah, that's helpful. And then just on the short end, like, I assume more cuts is helpful to a certain point. Not that the market's predicting this now, but like, what's that point where you're like, hey, if we get below three, or whatever it is, you know, then we kind of run out of room to replace deposits, for example. What's that to the point? I'm not sure there is one as long as the back, you know, as long as five to tens, depends if, you know, if the curve gets steeper as they cut. doing this in my head, but I think we're fine.

Matt O'connor: Yeah. That's helpful. And then just on the short end.

Matt O'connor: More cut is helpful to a certain point.

Matt O'connor: Not that the market is producing now, but like what's that point, where you're like hey, if we get below three or whatever it is.

Matt O'connor: Can you kind of.

Matt O'connor: Run out of room to reprice deposits for example, what's the tipping point.

Matt O'connor: I'm not sure there is one as long as the back you know as long as five to 10 is it depends.

Matt O'connor: Curve steep.

Matt O'connor: Steeper as they cut.

Matt O'connor: Doing this in my head, but I think we're fine yes, that's right.

Operator: Yeah, that's. Okay, thank you. We have reached the end of the question and answer session.

Matt O'connor: Okay. Thank you.

Matt O'connor: Yep.

Matt O'connor: We have reached the end of the question and answer session I'd now like to turn the call back over to Bryan Gill for closing comments.

Bryan Gill: I'd now like to turn the call back over to Bryan Gill for closing comments. Well, thank you all for joining our call and for your interest in PNC. And please feel free to reach out to the IR team if you have any additional questions. Thanks, everybody. Thank you.

Matt O'connor: Oh, well. Thank you all for joining our call and for your interest in P&C and.

Speaker Change: Please feel free to reach out to the IR team. If you have any additional questions.

Matt O'connor: Everybody. Thank you.

Operator: This concludes today's conference. You may disconnect your lines at this time, and we thank you for your participation.

Speaker Change: This concludes today's conference you may disconnect your lines at this time and we thank you for your participation.