PNC Bank 2003 Annual Report Download - page 30

28
Year ended December 31
Dollars in millions, except per share data 2003 2002 2001(a) 2000 1999
Summary of Operations
Net interest income . . . . . . . . . . . . . . . . . . . $1,996 $2,197 $2,262 $2,164 $2,344
Provision for credit losses . . . . . . . . . . . . . . . 177 309 903 136 163
Noninterest income . . . . . . . . . . . . . . . . . . . 3,257 3,197 2,652 2,950 2,460
Noninterest expense . . . . . . . . . . . . . . . . . . . 3,476 3,227 3,414 3,103 2,838
Income from continuing operations before
minority and noncontrolling interests and
income taxes . . . . . . . . . . . . . . . . . . . . . . . 1,600 1,858 597 1,875 1,803
Minority and noncontrolling interests . . . . . 32 37 33 27 15
Income taxes . . . . . . . . . . . . . . . . . . . . . . . . 539 621 187 634 586
Income from continuing operations . . . . . . . 1,029 1,200 377 1,214 1,202
Income (loss) from discontinued operations,
net of tax . . . . . . . . . . . . . . . . . . . . . . . . . (16) 5 65 62
Income before cumulative effect of
accounting change . . . . . . . . . . . . . . . . . . 1,029 1,184 382 1,279 1,264
Cumulative effect of accounting change,
net of tax . . . . . . . . . . . . . . . . . . . . . . . . . (28) (5)
Net income . . . . . . . . . . . . . . . . . . . . . . . . . $1,001 $1,184 $ 377 $1,279 $1,264
Per Common Share
Diluted earnings (loss)
Continuing operations . . . . . . . . . . . . . . . $ 3.65 $ 4.20 $ 1.26 $ 4.09 $ 3.94
Discontinued operations . . . . . . . . . . . . . . (.05) .02 .22 .21
Before cumulative effect of
accounting change . . . . . . . . . . . . . . . . 3.65 4.15 1.28 4.31 4.15
Cumulative effect of accounting change . . (.10) (.02)
Net income . . . . . . . . . . . . . . . . . . . . . . . . $ 3.55 $ 4.15 $ 1.26 $ 4.31 $ 4.15
Book value (At December 31) . . . . . . . . . . . . $23.97 $24.03 $20.54 $21.88 $19.23
Cash dividends declared . . . . . . . . . . . . . . . . $ 1.94 $ 1.92 $ 1.92 $ 1.83 $ 1.68
Selected Ratios
From Continuing Operations
Net interest margin . . . . . . . . . . . . . . . . . . . 3.64% 3.99% 3.84% 3.64% 3.86%
Noninterest income to total revenue (b) . . . . . 62.0 59.3 54.0 57.7 51.2
Efficiency(c) . . . . . . . . . . . . . . . . . . . . . . . . . 66.2 59.8 69.5 60.7 59.1
From Net Income
Return on
Average common shareholders’ equity . . . 15.06 18.83 5.65 21.63 22.41
Average assets . . . . . . . . . . . . . . . . . . . . . 1.49 1.78 .53 1.68 1.69
Loans to deposits . . . . . . . . . . . . . . . . . . . . . 75 79 80 106 108
Dividend payout . . . . . . . . . . . . . . . . . . . . . 54.50 46.07 151.65 42.06 40.22
Leverage(d) . . . . . . . . . . . . . . . . . . . . . . . . . . 8.2 8.1 6.8 8.0 6.6
Common shareholders’ equity to assets . . . . 9.73 10.32 8.35 9.07 8.12
Average common shareholders’ equity to
average assets . . . . . . . . . . . . . . . . . . . . . . 9.87 9.44 9.14 8.44 8.12
Certain prior-period amounts have been reclassified to conform with the current year presentation.
(a) Results for 2001 reflected actions taken in that year to accelerate the repositioning of PNC’s lending business and other strategic initiatives. Charges recognized in
connection with these actions totaled $1.2 billion pretax and reduced 2001 net income by $768 million or $2.65 per diluted share.
(b) Computed as total noninterest income divided by the sum of net interest income and noninterest income.
(c) Computed as noninterest expense divided by the sum of net interest income and noninterest income.
(d) The leverage ratio represents tier 1 capital divided by adjusted average total assets as defined by regulatory capital requirements for bank holding companies.
The ratio includes discontinued operations for the year 1999.
Consolidated Financial Highlights
The PNC Financial Services Group, Inc.