PNC Bank 2005 Annual Report Download - page 63

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• Our ability to implement our One PNC initiative, as
well as other business initiatives and strategies we
may pursue, could affect our financial performance
over the next several years.
• Our ability to grow successfully through acquisitions
is impacted by a number of risks and uncertainties
related both to the acquisition transactions themselves
and to the integration of the acquired businesses into
PNC after closing. These uncertainties are present in
transactions such as the pending acquisition by
BlackRock of Merrill Lynch’ s investment
management business and continue to be present with
respect to the integration of Riggs National
Corporation.
• Legal and regulatory developments could have an
impact on our ability to operate our businesses or our
financial condition or results of operations or our
competitive position or reputation. Reputational
impacts, in turn, could affect matters such as business
generation and retention, our ability to attract and
retain management, liquidity and funding. These
developments could include (a) the resolution of legal
proceedings or regulatory and other governmental
inquiries; (b) increased litigation risk from recent
regulatory and other governmental developments; (c)
the results of the regulatory examination process, our
failure to satisfy the requirements of agreements with
governmental agencies, and regulators’ future use of
supervisory and enforcement tools; (d) legislative and
regulatory reforms, including changes to laws and
regulations involving tax, pension and the protection
of confidential customer information; and (e) changes
in accounting policies and principles.
• Our business and operating results are affected by our
ability to identify and effectively manage risks
inherent in our businesses, including, where
appropriate, through the effective use of third-party
insurance and capital management techniques.
• Our ability to anticipate and respond to technological
changes can have an impact on our ability to respond
to customer needs and to meet competitive demands.
The adequacy of our intellectual property protection,
and the extent of any costs associated with obtaining
rights in intellectual property claimed by others, can
also impact our business and operating results.
• Our business and operating results can be affected
by widespread natural disasters, terrorist activities
or international hostilities, either as a result of the
impact on the economy and financial and capital
markets generally or on us or on our customers,
suppliers or other counterparties specifically.
Also, risks and uncertainties that could affect the results
anticipated in forward-looking statements or from historical
performance relating to our majority-owned subsidiary
BlackRock, Inc. are discussed in more detail in BlackRock’ s
filings with the SEC, accessible on the SEC’ s website and on or
through BlackRock’ s website at www.blackrock.com.
ITEM 7A – QUANTITATIVE AND QUA LITATIVE
DISCLOSURES ABOUT MARKET RISK
This information is set forth in the Risk Management section of
Item 7 of this Report.