PNC Bank 2002 Annual Report Download - page 4

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• We added Vice Chairman
and CFO Bill Demchak and
Vice Chairmen Bill Mutterperl
and Joe Whiteside, who
bring additional talent and
experience to our senior
leadership team.
• We also added new board
members — J. Gary Cooper,
Richard Kelson, Anthony
Massaro, and Stephen Thieke
— who provide significant
financial and industry expertise.
In addition, to further
enhance corporate governance,
our employees adopted a
Statement of Principles and we
strengthened our Code of Ethics.
I believe the extensive
amount of time and energy we
spent on risk management and
corporate governance in 2002 will
serve to reinforce our company’s
strong foundation.
In this economy, we also contin-
ued to strengthen critical ele-
ments of our balance sheet,
such as our liquidity and capital
positions. Our loan-to-deposit
ratio is 79%, down from 106%
at the end of 2000, and our
Tier I capital ratio is 8.8%. Each
is the strongest in our company’s
recent history and among the
best in our peer group.
We expect to proactively
manage our capital in 2003. Our
top priorities include investing
in our businesses and resuming
our share repurchase program.
We also continued an exten-
sive effort to reduce credit risk in
2002, removing roughly $2.8
billion in higher-risk, low-return
assets from our balance sheet.
In addition, our business
mix continues to fuel a diverse
revenue stream. In 2002,
deposits, asset management,
processing, and lending each
contributed roughly equal por-
tions of total business revenue.
I believe we’ve been succes-
ful in building a strong balance
sheet and enhancing risk
management and corporate
governance. Moving forward,
we’re working to harness the
energy we’ve focused on these
issues to help improve perform-
ance business by business.
This happens to be a partic-
ular strength of Joe Guyaux, the
30-year PNC veteran we named
president of PNC in August
2002. In his new role, Joe heads
all of our banking businesses,
including Wholesale Banking
and PNC Advisors. He is
working to build on the
remarkable success Regional
Community Banking achieved
under his leadership.
2
James E. Rohr
Chairman and
Chief Executive Officer
Well-Positioned Balance Sheet