PNC reported a strong Q1 2026 with organic loan growth at a three-year high, NIM expanding 11 bps, and 13% YoY fee income growth. Management emphasized that the NDFI exposure is overwhelmingly low-risk trade securitizations, not private credit, and that consumer activity remains robust despite negative sentiment surveys. Guidance implies continued momentum with full-year revenue up ~11% and Q2 revenue up ~3.5%. Organic loan growth hit a three-year high; spot loans up $14B ex-First Bank acquisition.
PNC reported a strong Q1 2026 with organic loan growth at a three-year high, NIM expanding 11 bps, and 13% YoY fee income growth. Management emphasized that the NDFI exposure is overwhelmingly low-risk trade securitizations, not private credit, and that consumer activity remains robust despite negative sentiment surveys. Guidance implies continued momentum with full-year revenue up ~11% and Q2 revenue up ~3.5%. Organic loan growth hit a three-year high; spot loans up $14B ex-First Bank acquisition.
PNC reported a strong Q1 2026 with organic loan growth at a three-year high, NIM expanding 11 bps, and 13% YoY fee income growth. Management emphasized that the NDFI exposure is overwhelmingly low-risk trade securitizations, not private credit, and that consumer activity…
Organic loan growth hit a three-year high; spot loans up $14B ex-First Bank acquisition.
Net interest margin increased to 2.95% and is expected to exceed 3% in 2H26.
NDFI book ~90% investment grade; 80% of business credit intermediaries are trade securitizations with zero loss history.
Management discussed AI as part of their technology strategy, noting that AI allows continued automation and could accelerate efficiency gains over time, while emphasizing that banking will remain competitive on cost and product quality.
Management highlighted strong organic loan growth, net interest margin expansion, double-digit fee income growth, and constructive forward guidance, signaling confidence in sustained momentum despite macroeconomic uncertainty.
Management mentioned ongoing investments in technology and branch network, with some technology investments shifted from Q1 to Q2, and a $350 million continuous improvement program funding a significant portion of these investments.
Management expressed confidence in strong momentum, highlighted solid results, and dismissed concerns about NDFI credit risk and customer sentiment.
“the bulk of our loans actually have nothing to do with private credit despite the regulatory category in which they reside.”
“spending patterns, growth in savings, activity levels, loan growth, everything we see day to day in our business, is almost at complete odds with the surveys you see on confidence.”
“CRE balances reached an inflection point and increased approximately $100 million, and we expect moderate growth through the remainder of the year.”
“spreads have got 50 basis points, new production, just because of the kind of scare around what's going on.”
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| Revenue | FY2026 | 11% | 11% | GUIDED |
| Revenue | FY2026 Q2 | 3.5% | 3.5% | GUIDED |
Spreads on cash-flow lending to private credit have widened ~50 bps on new production due to the 'scare' in the asset class, even though PNC's own exposure is tiny. — Wider spreads improve risk-adjusted returns for banks and CLO investors, but signal tightening liquidity/greater caution among direct lenders, which could slow deal flow for private credit funds.
… or 11%, and the total average loan yield of 5.5% decreased 10 basis points linked quarter. On a spot basis, loans increased $29 billion or 9% from year end, including $15 billion from the first bank acquisition and $14 billion of growth in legacy PNC loans. Specific to our legacy business, CNI loans increased $15 billion, driven by broad-based growth across businesses, reflecting strong new production and higher utilization rates. CRE balances reached an inflection point and increased approximately $100 million, and we expect moderate growth through the remainder of the year. And consumer loans declined $1 billion due to lower residential mortgage balances. Slide 6 covers our deposit balances in more detail. Average deposits were $458 billion, up $19 billion, or 4%, driven by the addition of first bank balances and partially offset by a reduction in brokered CDs. Excluding those items, deposit trends were consistent with typical seasonality as growth in consumer balances more than offset a seasonal decline in commercial deposits. Non-interest-bearing balances continue to represent 22% of total deposits. and our total rate paid on interest-bearing deposits decreased 18 basis …
Spreads on cash-flow lending to private credit have widened ~50 bps on new production due to the 'scare' in the asset class, even though PNC's own exposure is tiny. — Wider spreads improve risk-adjusted returns for banks and CLO investors, but signal tightening liquidity/greater caution among direct lenders, which could slow deal flow for private credit funds.
Yep. No, that's fair. Sounds like it's mostly stable. So that's good. And then shifting on to the loan side, can you talk about borrower sentiment, pipelines, and then the competitiveness on the loan pricing front?
The only thing we've really seen on spread widening as you get into any of this space, you know, what I'll I'll call leveraged lending. We don't do much of that. But in business credit, we've seen spreads move. You know, our partnership with TCW on cash flow lending, you know, those spreads have got 50 basis points, new production, just because of the kind of scare around what's going on. Yeah. Yeah.
Commercial real estate loan balances have finally inflected positive after quarters of decline, and PNC expects moderate growth through the rest of 2026.
… or 11%, and the total average loan yield of 5.5% decreased 10 basis points linked quarter. On a spot basis, loans increased $29 billion or 9% from year end, including $15 billion from the first bank acquisition and $14 billion of growth in legacy PNC loans. Specific to our legacy business, CNI loans increased $15 billion, driven by broad-based growth across businesses, reflecting strong new production and higher utilization rates. CRE balances reached an inflection point and increased approximately $100 million, and we expect moderate growth through the remainder of the year. And consumer loans declined $1 billion due to lower residential mortgage balances. Slide 6 covers our deposit balances in more detail. Average deposits were $458 billion, up $19 billion, or 4%, driven by the addition of first bank balances and partially offset by a reduction in brokered CDs. Excluding those items, deposit trends were consistent with typical seasonality as growth in consumer balances more than offset a seasonal decline in commercial deposits. Non-interest-bearing balances continue to represent 22% of total deposits. and our total rate paid on interest-bearing deposits decreased 18 basis …