PNC Bank 2003 Annual Report Download - page 8

Taken together, these growth
drivers will help us address continuing
challenges.
Addressing Challenges
With expectations for moderate
economic and market growth, as well
as weak loan demand industry wide,
we accelerated efforts to reduce costs
and improve operating leverage.
Last year, we set out to improve
efficiency by $100 million on a run rate
basis. We exceeded that goal by nearly
50 percent. The bulk of those savings
came through system and process
enhancements at PFPC and rationaliz-
ing delivery systems in Regional
Community Banking and PNC Advisors.
Our growth initiatives and
continuing efforts to improve efficien-
cy should help us address interest
rate pressures. We will not alter our
disciplined approach to interest rate
and enterprise-wide risk management,
which we believe will help us deliver
stronger risk-adjusted returns over
the long term.
Culture and Community
Although the challenges we face
are not unique, the team we have built
to address them — and achieve all of
our goals — is.
We deeply value the contribu-
tions of our 23,000 employees. We
reward individual and team success,
and we provide one of the industry’s
best benefits plans. Through providing
flexible work arrangements, two back-
up child care centers and other work-
life programs, we once again earned
the distinction of being named one of
the 100 best companies for working
mothers by Working Mother magazine.
These efforts, among others, have
helped us create a culture that fosters
quality performance.
Our workforce has also become
more diverse. We have significantly
increased the number of minorities in
senior management. In addition, we
have taken steps to further improve
diversity at every level. Last year PNC
served as a national sponsor of the
National Urban League conference,
and we served as a sponsor and were
actively involved in the National
Black MBA conference.
These two events represent a
small sampling of our unwavering com-
mitment to the communities we serve.
Beyond the launch of PNC
Grow Up Great, we provided more
than $11 million through The PNC
Foundation to hundreds of community
organizations in 2003. And our employ-
ees built on the one million volunteer
hours they have contributed over the
last few years.
We are very proud of these
initiatives and all that we have accom-
plished in 2003.
Of course, it has very much been
a team effort. I would like to thank
our board of directors and senior
executive team for their extraordinary
contributions. I also want to express
my deep appreciation to our customers
and shareholders for their ongoing
faith and trust in our company.
We look forward to earning
your continued confidence as we
work to grow PNC.
Sincerely,
Beyond the launch of PNC Grow Up Great, we provided
more than $11 million through The PNC Foundation
to hundreds of community organizations in 2003. And
our employees built on the one million volunteer hours
they have contributed over the last few years.
James E. Rohr
Chairman and Chief Executive Officer
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