PNC Bank 2000 Annual Report Download - page 19

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n 2000, Corporate Banking continued
its transition to becoming a provider of
diversified financial services to companies
and government agencies — which
included developing a stronger focus on
more highly-valued earnings. Central to
this transition are Corporate Banking’s
specialized credit, capital markets, treasury
management and leasing services.
At the same time, Corporate
Banking has focused on decreasing
its reliance on institutional lending,
which has historically demonstrated
earnings volatility. As a result of these
strategies, more valuable noncredit-
related sources now generate 52% of
Corporate Banking’s revenues.
Treasury Management has
leveraged leading technology and strong
receivables management products to
grow revenue at nearly twice the industry
average since 1998.
And its inherent technology and
receivables management strengths were
key reasons behind PNC’s joint venture
with Perot Systems to create BillingZone.
This business will help position PNC
as a leader in the growing business-to-
business electronic bill payment and
presentment (EBPP) arena.
PNC Capital Markets, with its
strong, middle market focus, has been
another important contributor. With spe-
cialized expertise in loan syndications,
asset securitization, foreign exchange and
public finance, PNC Capital Markets has
grown earnings at a 20% compound annu-
al rate over the last three years. And it
has minimal involvement in higher-risk,
proprietary trading activities.
Driving growth across these sectors
and focusing intensely on increasing cro s s -
r e f e rral activity with other PNC businesses
should better position Corporate Banking
to continue its transition and deliver more
valuable earn i n g s .
Equally important, in an
increasingly challenging asset quality
environment, Corporate Banking will
take continued actions to limit large
credit exposures and further reduce
reliance on lending revenue.
PNC BA NK
—
CO R P O R AT E BA N K I N G
17
FEDERATED DEPARTMENT STORES
Cincinnati-based Federated Department Stores,
Inc., has long valued PNC for its ability to deliv-
er a broad spectrum of sophisticated financial
products and services. In addition to providing
corporate expense disbursement services, PNC
Bank’s Treasury Management group recently
joined with Federated to implement a customized
electronic data interchange merchandise payables
system for suppliers. PNC Capital Markets was
instrumental in financing Federated’s co-branded
Visa card program through an asset securitization
facility, and BlackRock provides investment
management services. Pictured are Federated
Vice Chairman Ron Tysoe and PNC Senior
Vice President Joe Richardson.
$339
98 99 00
$373 $433
NO N C R E D I T
RE V E N U E
(in millions)
I