PNC expects AI spend of around $700M in 2026
Bank plans to use savings from AI, automation in other growth segments
PNC Bank aims to continue investing in tech and branches by deploying savings gained from AI and automation.
The bank plans to expand its branch network in select regions like Colorado, modernize its legacy infrastructure and improve its digital payments capabilities, Chief Executive Bill Demchak said during the bank’s fourth-quarter earnings call today.
“Think of it along the same lines of the rebuilding of our online banking, where we’re breaking it down to micro-services, so it’s more resilient and faster [for] modernization,” he said.
The $563 billion bank expects its tech budget to increase by nearly 10% in 2026, Demchak said, adding thatin 2025, the bank spent nearly $3.5 billion on tech and related initiatives.
“AI is 20% [$770 million] of that increase beyond what we spend already,” he said.
The Pittsburgh-based PNC expects incremental savings from tech modernization this year and plans to reinvest those savings into growth initiatives like branch expansion, Demchak said.
“A lot of the savings in 2026 [will be] coming out of our automation efforts, some of which are related to AI, but some of which are just straight up automation to allow us to continue the investment profile we’ve had for years,” he said.
THE BIG PICTURE: PNC closed its $4.2 billion acquisition of Lakewood, Co.-based FirstBank on Jan. 5, Demchak said.
The bank sees the move as “greatly expanding our presence in high-growth communities across Colorado and Arizona,” he said. “PNC and FirstBank employees have made great progress in preparing for a successful conversion and integration, which is scheduled for June of 2026.”
The acquisition will boost PNC’s earnings along with earnings per share by up to $1 in 2027, Demchak said.
BY THE NUMBERS: In Q4, PNC reported:
- Revenue of $6.1 billion, up 3% year over year;
- Non-interest expense, which includes tech spend, of $3.6 billion, up 3% YoY; and
- Efficiency ratio of 59%, relatively flat for the quarter.
OF NOTE: PNC Head of Data and Automation Ned Carroll, will be featured in a fireside chat at FinAi Banking Summit on Tuesday, March 3, at 9:10 a.m. local time. The event is to be held in Denver on March 2-3.
PNC [NYSE: PNC] stock was up 3.7% to $223.18 at market close today. PNC has a market capitalization of $87.5 billion.
Register here by Jan. 16 for early–bird pricing for the summit. View the full event agenda here.
