PNC Bank 2005 Annual Report Download - page 8

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In providing asset management services, our subsidiaries
compete with the following:
• Investment management firms,
• Large banks and other financial institutions,
• Brokerage firms,
• Mutual fund complexes, and
• Insurance companies.
The fund servicing business is also highly competitive, with a
relatively small number of providers. Merger, acquisition and
consolidation activity in the financial services industry has
also impacted the number of existing or potential fund
servicing clients and has intensified competition.
The ability to access and use technology is an increasingly
important competitive factor in the financial services industry.
Technology is important not only with respect to delivery of
financial services, but also in processing information. Each of
our businesses consistently must make significant
technological investments to remain competitive.
We include here by reference the additional information
regarding competition included in the Item 1A Risk Factors
section of this Report.
EMPLOYEES Period-end employees totaled 25,348 at
December 31, 2005 (comprised of 23,593 full-time and 1,755
part-time employees).
SEC REPORTS AND CORPORATE GOVERNANCE
INFORMATION
We are subject to the informational requirements of the
Securities Exchange Act of 1934, as amended (“Exchange Act”),
and, in accordance with the Exchange Act, we file annual,
quarterly and current reports, proxy statements, and other
information with the SEC. Our SEC File Number is 001-09718.
You may read and copy any document we file with the SEC at
the SEC’ s Public Reference Room at 100 F Street NE,
Washington, D.C. 20549. You can obtain information on the
operation of the Public Reference Room by calling the SEC at 1-
800-SEC-0330. The SEC also maintains an internet site that
contains reports, proxy and information statements, and other
information regarding issuers that file electronically with the
SEC, including our filings. The address of the SEC’ s website is
www.sec.gov. Copies of such materials can also be obtained at
prescribed rates from the public reference section of the SEC at
100 F Street NE, Room 1580, Washington, D.C. 20549.
We also make our annual report on Form 10-K, quarterly reports
on Form 10-Q, current reports on Form 8-K, and amendments to
those reports filed or furnished to the SEC pursuant to Section
13(a) or 15(d) of the Exchange Act available free of charge on or
through our internet website as soon as reasonably practicable
after we electronically file such material with, or furnish it to, the
SEC. Our internet address is www.pnc.com. Shareholders may
also obtain copies of these filings without charge by contacting
Shareholder Services at [phone] or via e-mail at
[email protected] for copies without exhibits, or
by contacting Shareholder Relations at [phone] or via
e-mail at [email protected] for copies of exhibits. We
filed the certifications of our Chairman and Chief Executive
Officer and our Chief Financial Officer required pursuant to
Section 302 of the Sarbanes -Oxley Act of 2002 with respect to
our Annual Report on Form 10-K for 2004 with the SEC as
exhibits to that Report and have filed the CEO and CFO
certifications required by Section 302 of that Act with respect to
this Form 10-K as exhibits to this Report.
Information about our Board and its committees and corporate
governance at PNC is available in the corporate governance
section of the “For Investors” page of our website at
www.pnc.com. Shareholders who would like to request printed
copies of the PNC Code of Business Conduct and Ethics or our
Corporate Governance Guidelines or the charters of the Board’ s
Audit, Nominating and Governance, or Personnel and
Compensation Committees (all of which are posted on our
website) may do so by sending their requests to George Long,
III, Corporate Secretary, at corporate headquarters at One PNC
Plaza, 249 Fifth Avenue, Pittsburgh, Pennsylvania 15222-2707.
Copies will be provided without charge to shareholders.
Our common stock is listed on the New York Stock Exchange
(“NYSE”) under the symbol “PNC”. Our Chairman and Chief
Executive Officer submitted the required annual CEO’ s
Certification regarding the NYSE’ s corporate governance listing
standards (a Section 12(a) CEO Certification) to the NYSE
within 30 days after our 2005 annual shareholders meeting.
ITEM 1A – RISK FACTORS
We are subject to a number of risks potentially impacting our
business, financial condition, results of operations and cash
flows. Indeed, as a financial services organization, certain
elements of risk are inherent in every one of our transactions
and are presented by every business decision we make. Thus,
we encounter risk as part of the normal course of our business,
and we design risk management processes to help manage
these risks.
In many cases, there are risks that are known to exist at the
outset of a transaction but which cannot reasonably be
eliminated. For example, every loan transaction presents
credit risk (the risk that the borrower may not perform in
accordance with contractual terms) and interest rate risk (a
potential loss in earnings or economic value due to adverse
movement in market interest rates or credit spreads), with the
nature and extent of these risks principally depending on the
identity of the borrower and overall economic conditions.
These risks are inherent in every loan transaction; if we wish
to make loans, we must manage these risks through the terms
and structure of the loans and through management of our
deposits and other funding sources. The success of our
business is dependent on our ability to identify, understand
and manage the risks presented by our business activities so
that we can balance appropriately revenue generation and
profitability with these inherent risks. We discuss our
principal risk management processes and, in appropriate
places, related historical performance in the Risk Management
section included in Item 7 of this Report.
The following are the key risk factors that affect us. These
risk factors are also discussed further in other parts of this
Report.