PNC Bank 2003 Annual Report Download - page 11

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We have made great progress at
PFPC. We have made the business more
efficient by enhancing systems and
rationalizing processes. At the same
time, we have re-energized PFPC’s mar-
keting engine and made investments to
further enhance its premier technolo-
gy-based solutions. The result: despite
continued pricing pressures, PFPC is
much more competitive and we are
winning a greater share of business.
What is PNC doing to
address the challenging
interest rate environment?
DEMCHAK: I think this has the
potential to be a major issue in the
industry. Our goal is to manage inter-
est rate risk in a way that maximizes
the value of equity over time.
In this historically low rate envi-
ronment, we have not chosen the
“cash-and-carry” trade of buying long-
term securities and funding them with
short-term liabilities. As a result, we
have had some pressure on net interest
income. However, we believe that the
firm is better positioned than most in
a changing rate environment, which is
what we anticipate later in 2004.
How would you describe the
culture PNC has created?
GUYAUX: The PNC culture is defined
by an unwavering commitment to our
values and high performance — for our
customers, shareholders, employees and
communities.
It all starts by empowering
employees. The more employees feel
capable of meeting customer needs, the
better PNC is positioned to achieve the
growth we seek. To support this objec-
tive, we have invested a significant
amount of time and effort on sales,
product and leadership training. This
helps members of our team grow both
personally and professionally.
In the culture we have built, team-
work and individual performance are
required and expected. Of course, they
are also rewarded. We do this through a
number of recognition programs, includ-
ing the PNC Performance Award, which
is given annually to a select number of
employees who best reflect our values.
Our overall approach leads to high
levels of employee and customer satis-
faction, which we consistently monitor.
Because we truly believe it is not only
about the results we achieve, but how
we achieve them.
9
James E. Rohr
Chairman and
Chief Executive
Officer