PNC's 2026 Retail Deposit Strategy Focuses on Client Growth and Rate Stability

PNC’s retail deposit growth strategy for 2026 (as described in its 2026 Q1 earnings materials)

PNC’s strategy for growing retail deposits in 2026 centers on growing the number of retail clients (and therefore DDA/low-cost deposit relationships), supported by a multi-pronged acquisition/coverage model (branch expansion + digital acquisition) and by benefiting from competitive “rate/price” dynamics without assuming the Fed cuts rates in 2026. ¹

1) Lead with retail client growth → grow DDA balances and deposits

Management frames the deposit-growth “algorithm” as less about chasing deposit balances directly, and more about growing retail clients, which then drives deposit growth over time through higher average balances and DDA growth. ¹

Key elements of this logic include:

• DDA and retail clients broadly drive deposit growth: PNC explicitly links its deposit growth focus to growing growth in DDA accounts and retail clients broadly. ¹
• Deposits are a function of balance behavior tied to rates and competition: PNC notes that the average balance a customer holds depends on how high rates are and how competitive outside alternatives are. ¹
• “Shots on goal” = retail client count: PNC describes “total shots on goal” as the number of retail clients we have. ¹

2) Acquire more customers via branches and digital—continue both in 2026

PNC’s 2026 growth plan also depends on widening distribution:

• Branch expansion: PNC states it has opened eight branches so far in 2026, and expects about another 50 to 55 by year-end. ¹
• Digital acquisition: PNC describes its digital acquisition as really strong and emphasizes the need to continue that, expecting it to lead “ultimately” to deposit growth. ¹

In combination, PNC’s approach is to increase customer reach and account-opening volume through both physical (branches) and digital channels, supporting client growth—which management says is the long-term key to deposit growth. ¹

3) Compete where needed on price, but the “core” goal is client growth

PNC acknowledges that in a period of steady higher rates, competitors may pay up to maintain balances or attract new clients—especially in certain price categories. ¹

However, PNC’s stated emphasis remains building the underlying retail customer base (and the DDA relationship that comes with it), rather than presenting price competition as the primary strategy. ¹

4) Operate with an expectation of no Fed cuts in 2026; deposit costs largely driven by repricing

PNC’s deposit-growth strategy is shaped by its rate outlook:

• PNC states it does not expect the Federal Reserve to cut rates during 2026. ²
• In that scenario, PNC indicates deposit costs are expected to be fairly steady through Q2, and then maybe go up 1–2 bps based on estimates. ³
• The cost pressure described is not mainly from competition, but from back-book repricing as customers roll closer to market levels (which increases deposit costs at the margin if the Fed does not move). ³

This matters for the strategy because PNC is effectively planning deposit growth efforts (client acquisition and DDA growth) while anticipating moderate deposit-cost movement from repricing rather than an outsized competitive cost spiral. ³

5) 2026 deposit growth expectations: “incremental growth” versus maintaining the level

PNC also provides a directional expectation for deposit growth in 2026:

• It reminds listeners of “deposit growth expectations for the year” described as staying at these levels with some incremental growth in 2026. ⁴

While management does not quantify a precise target deposit growth rate in the excerpts provided, it frames 2026 as achieving incremental progress rather than a large step-change—supported by the retail client/DDA focus and ongoing acquisition initiatives. ⁴¹

6) Evidence of the strategy working at the franchise level (from 2026 Q1 commentary)

In Q1 2026, PNC reported deposit dynamics consistent with the stated framework:

• Average deposits were $458 billion, up $19 billion (4%), driven by addition of FirstBank balances partially offset by reduction in brokered CDs. ⁵
• Excluding those items, deposit trends were consistent with seasonality (consumer growth offset a seasonal commercial decline). ⁵
• DDA represent 22% of total deposits. ⁵

This indicates PNC’s deposit base is managed with attention to DDA mix and deposit categories (and that M&A balance adds can matter, but management highlights seasonality and mix as well). ⁵

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Bottom line

For 2026, PNC’s retail deposit growth strategy is to grow retail clients, which management believes drives DDA account growth and therefore deposit growth over time. ¹ To execute, PNC is combining branch expansion (opening 8 already; targeting ~50–55 more total for the year) with strong digital acquisition, and it operates under a macro/rates assumption of no Fed cuts in 2026 while expecting deposit costs to be mostly steady with modest movement later in the year driven by back-book repricing rather than competition alone. ¹³²