PNC Bank 2001 Annual Report Download - page 17

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CORPORATE BANKING Over the past
three years, Corporate Banking has
taken a number of actions to reposition
itself as a diversified provider of financial
services primarily for middle market cor-
porate clients. This effort was accelerated
in 2001 to further reduce Corporate
Banking’s reliance on lending revenue.
In fact, since 1998, approximately 70%
of institutional loan outstandings have
been exited or designated for exit or sale.
Going forward, this business will
work to create value by aggressively
marketing solutions customized to
meet the business and personal finan-
cial services needs of middle market
corporate clients.
A key element of this strategy is
adapting Corporate Banking’s institu-
tional expertise to serve middle market
customers. The emphasis on marketing
fee-based services — and remaining
intensely focused on risk/return criteria
— should enable Corporate Banking to
deliver a more valuable revenue stream.
In 2001, noncredit products, such as
treasury management, capital markets
and asset management, represented
roughly 60% of revenues from relation-
ships not designated for exit or sale.
Corporate Banking also leverages
PNC’s expertise in asset securitization,
public finance and leasing to broaden
customers’ financing opportunities
beyond traditional credit products.
PNC Capital Markets strength-
ened its growth prospects by adapting
its institutional expertise in derivatives
and foreign exchange products to
better serve the requirements of
middle market clients. Entering 2002,
mid-sized companies constituted a
growing percentage of PNC Capital
Markets’ client portfolio. Corporate
Banking also taps the expertise of
PNC Advisors to cross-sell sophisticat-
ed personal investment management
products to high-net-worth executives
and corporate clients.
Innovative solutions that capital-
ize on PNC’s strong technology base
continued to drive this business. Strong
sales in treasury management products
and services helped significantly
increase new business booked for
this product line in 2001. Key to
this growth was A/R AdvantageSM,
a receivables management product
set that employs state-of-the-art
imaging technology and Internet
data delivery to enhance clients’
working capital positions.
In 2002, Corporate Banking
will continue to sharpen its focus
on building revenues from noncredit
products for middle market clients
seeking comprehensive strategies
that span a wealth of business and
personal financial needs.
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