PNC sees growth opportunity in capital-led market disruptions

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U.S. House Financial Services Committee hearing on Capitol Hill in Washington

PNC Financial Services Group President and CEO William Demchak testifies during a U.S. House Financial Services Committee hearing titled “Holding Megabanks Accountable: Oversight of America’s Largest Consumer Facing Banks” on Capitol Hill in Washington, U.S., September 21, 2022. REUTERS/Elizabeth Frantz/File Photo Acquire Licensing Rights

NEW YORK, Dec 5 (Reuters) – PNC Financial Services (PNC.N) CEO William Demchak on Tuesday said that the market disruptions caused by the Basel III endgame proposal is an opportunity for the bank to grow.

“The Basel III endgame and some of the disruption on interest rates affords us near-term opportunities as other people are changing their balance sheets,” Demchak told investors at the Goldman Sachs (GS.N) U.S. Financial Services Conference.

“So there is the ability to acquire assets or assume risk or just acquire clients as other people shrink,” he said.

The chiefs of other banking giants have strongly criticized proposed rules that would require U.S. lenders to set aside more capital, saying they could crimp lending and curtail growth.

Bank bosses are also expected to protest against these draft rules at a Senate hearing on Wednesday. Regulators have said that the so-called “Basel endgame” plans, which overhaul how banks must calculate their loss-absorbing capital, would not impede lending or hurt small businesses.

Separately, Pittsburgh-based PNC also expects expenses to remain stable in 2024.

The bank has also started “dipping its toes” in resuming share buy backs, Demchak said. Many U.S. lenders had slowed their share repurchases in response to an uncertain economic outlook.

Reporting by Nupur Anand in New York; Editing by Lananh Nguyen and Mark Porter

Our Standards: The Thomson Reuters Trust Principles.

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Nupur Anand is a U.S. banking correspondent at Reuters in New York. She focuses on JPMorgan Chase, Wells Fargo and regional banks. Anand covered banking and finance in India for more than a decade, chronicling the collapse of major lenders and turmoil at digital banks and cryptocurrencies. She has a degree in English literature from Delhi University and a postgraduate diploma in journalism from the Indian Institute of Journalism & New Media in Bangalore. Anand is also an award-winning fiction writer.

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