PNC Bank 2005 Annual Report Download - page 105

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We have allocated the allowances for loan and lease losses and
unfunded loan commitments and letters of credit based on our
asses sment of risk inherent in the loan portfolios. Our allocation
of the costs incurred by operations and other support areas not
directly aligned with the businesses is primarily based on the
use of services.
Total business segment financial results differ from total
consolidated results. The impact of these differences is
reflected in the “Intercompany Eliminations” and “Other”
categories. “Intercompany Eliminations” reflects activities
conducted among our businesses that are eliminated in the
consolidated results. “Other” includes residual activities that
do not meet the criteria for disclosure as a separate
reportable business, such as asset and liability management
activities, related net securities gains or losses, certain
trading activities, equity management activities and minority
interest in income of BlackRock, differences between
business segment performance reporting and financial
statement reporting (GAAP), and corporate overhead.
BUSINESS SEGMENT PRODUCTS AND SERVICES
Retail Banking provides deposit, lending, brokerage, trust,
investment management and cash management services to
approximately 2.5 million consumer and small business
customers within our primary geographic area. Our
customers are serviced through approximately 840 offices in
our branch network, the call center located in Pittsburgh and
the Internet – www.pncbank.com. The branch network is
located primarily in Pennsylvania, New Jersey, Ohio,
Kentucky, Delaware and the Greater Washington, D.C. area,
including Virginia and Maryland. Brokerage services are
provided through PNC Investments, LLC, and J.J.B.
Hilliard, W.L. Lyons, Inc. Retail Banking also serves as
investment manager and trustee for employee benefit plans
and charitable and endowment assets and provides
nondiscretionary defined contribution plan services and
investment options through its Vested Interest product.
These services are provided to individuals and corporations
primarily within our primary geographic markets. See Note
2 Acquisitions regarding the Riggs and United National
acquisitions.
Corporate & Institutional Banking provides lending, treasury
management, and capital markets products and services to
mid-sized corporations, government entities and selectively to
large corporations. Lending products include secured and
unsecured loans, letters of credit and equipment leases.
Treasury management services include cash and investment
management, receivables management, disbursement services,
funds transfer services, information reporting, and global trade
services. Capital markets products and services include
foreign exchange, derivatives, loan syndications, mergers and
acquisitions advisory and related services to middle-market
companies, and securities underwriting, sales and trading.
Corporate & Institutional Banking also provides commercial
loan servicing, real estate advisory and technology solutions
for the commercial real estate finance industry. Corporate &
Institutional Banking provides products and services generally
within our primary geographic markets and provides certain
products and services nationally. See Note 2 Acquisitions
regarding the Harris Williams acquisition.
BlackRock is one of the largest publicly traded investment
management firms in the United States with approximately
$453 billion of assets under management at December 31,
2005. BlackRock provides diversified investment management
services to institutional and individual investors worldwide
through a variety of fixed income, cash management, equity,
and alternative investment products. Mutual funds include the
flagship fund families, BlackRock Funds and BlackRock
Liquidity Funds. In addition, BlackRock provides risk
management, investment system outsourcing and financial
advisory services to institutional investors under the
BlackRock Solutions brand name. See Note 2 Acquisitions
regarding the SSRM acquisition and Note 26 Subsequent
Event.
PFPC is among the largest providers of mutual fund transfer
agency and accounting and administration services in the
United States, offering a wide range of fund processing
services to the investment management industry, and
providing processing solutions to the international
marketplace through its Ireland and Luxembourg operations.