PNC Bank 2000 Annual Report Download - page 6

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CO N S I S T E N C Y A N D GR O W T H: OU R TA R G E T E D
OU T C O M E S
Our overriding objective is to achieve a
premium valuation relative to our peers, and we
recognize that achieving this objective will require
the demonstrated ability to deliver strong growth
in earnings consistently over time. Accordingly,
we have focused our strategies on creating a business
mix with the following characteristics:
•G r eater diversity of earnings, with increased contri-
butions from our more highly-valued businesses,
including asset management and processing.
•Greater consistency of earnings, an objective that
will demand decreased reliance on historically
volatile lending activities and increased contribu-
tions from fee-based activities.
•Strong growth dynamics, which
will require continued investments in
our higher-growth businesses and
increased relative contributions from
higher-growth activities within our
banking businesses.
BU I L D I N G A MO R E VA L U A B L E
BU S I N E S S MI X
In 2000, we invested over
$1 billion in our businesses, including
our acquisition of Automated Business
Development, Corp., which will be inte-
g rated into PFPC, and BillingZone, our
joint venture with Perot Systems. Our
investments have focused on expanding
the scope and scale of our more highly-
valued businesses, building the PNC
brand, attracting and retaining talented
professionals, and developing and
Positive change defined our company in
2000, and our ability to embrace change during the
year without compromising near-term performance is
a testament to the will and resolve of our employees.
In this, my first letter to shareholders, I want to thank
all of my colleagues at PNC. Their efforts paved the
way for a strong 2000 and drove our progress in
creating a more valuable company.
ST R O N G FI N A N C I A L PE R F O R M A N C E
On an absolute basis and relative
to our industry peers, the financial
performance of our continuing operations
was strong in 2000:
•Earnings per share rose to $4.09,
a 10% increase over core earnings
per share in 1999.
•Noninterest income accounted
for 57% of total revenue.
• Asset quality remained relatively
stable, with net charge-offs to average
loans of .27% and nonperforming
loans to total loans of .64% .
• Returns on equity and assets were
21% and 1.8% , respectively.
We are pleased with our financial
results in 2000, and are gratified that
investors have recognized the strength
and consistency of our performance. In
2000, PNC’s stock price increased by over
60% , more than four times the increase
for the S&P Major Regional Banks Index.
4
P N C C O M M O N
ST O C K V S . S & P
MA J O R RE G I O N A L
BA N K S IN D E X
(per share price increase —
Dec. 31, 2000 vs.
Dec. 31, 1999)
PNC S&P
MRBI
64%
14%