PNC Bank 2006 Annual Report Download - page 6

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4 PNC 2006 ANNUAL REPORT
Our competitive advantage lies in our emphasis and expertise in the middle market
space, which was recognized in 2006 when PNC won Principal of the Year and Deal
of the Year (Debt) at the Middle Market Financing Awards sponsored by The M&A
Advisor magazine. Unlike larger organizations that focus on big corporate customers
and serve the middle market as a sideline, we have a stable and experienced sales
force dedicated to serving the needs and developing relationships with these clients.
For the fourth consecutive year, our expertise has helped us retain our ranking as
the No. 1 lead arranger of loan syndications for mid-size companies in the Northeast.
That is important, because lead bank relationships have helped make PNC a leader
in cross-sell penetration. We are selling more treasury management services, more
business checking accounts and more capital markets services.
Meanwhile, at BlackRock, an expanded product line and truly global reach should
help our asset management segment contribute significantly more to PNC in the
years ahead.
And, scale continues to be important in the processing business, so it is significant
that PFPC is the No. 1 sub-accounting provider and the No. 2 full-service mutual
fund transfer agent in the United States. Fee income from these businesses permits
PFPC to invest in higher growth areas, such as Europe, where investments in mutual
and hedge funds have exploded.
Our offshore assets serviced grew in double digits last year, which led PFPC to add
a new Irish office and an expanded Dublin headquarters in 2006. Our four European
offices helped make PFPC the No. 1 servicer of Irish-domiciled hedge funds in 2006.
And PFPC continues to expand its international franchise by further developing a global
custody business that now has responsibility for assets totaling $427 billion worldwide.
We have improved our operating leverage. As we enter 2007, we are in the final stages
of One PNC, the innovative initiative designed to increase operating leverage by
enhancing revenues and lowering expenses. By mid-year, we expect to achieve our
quarterly run-rate goal of $100 million, or $400 million in annual benefit.
LEADING THE
WILLIAM S. DEMCHAK
VICE CHAIRMAN,
HEAD OF CORPORATE
AND INSTITUTIONAL
BANKING
JOSEPH C. GUYAUX
PRESIDENT,
HEAD OF
RETAIL BANKING
JAMES E. ROHR
CHAIRMAN AND
CHIEF EXECUTIVE
OFFICER
Leadership