PNC Bank 2007 Annual Report Download - page 69

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regulatory reforms, including changes to laws and
regulations involving tax, pension, education lending,
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, derivatives, and
capital management techniques.
• The adequacy of our intellectual property protection, and
the extent of any costs associated with obtaining rights in
intellectual property claimed by others, can impact our
business and operating results.
• 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.
• Our ability to implement our business initiatives and
strategies could affect our financial performance over the
next several years.
• Competition can have an impact on customer acquisition,
growth and retention, as well as on our credit spreads and
product pricing, which can affect market share, deposits
and revenues.
• Our business and operating results can also be affected
by widespread natural disasters, terrorist activities or
international hostilities, either as a result of the impact on
the economy and capital and other financial 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 equity interest in
BlackRock, Inc. are discussed in more detail in
BlackRock’s filings with the SEC, including in the Risk
Factors sections of BlackRock’s reports. BlackRock’s
SEC filings are accessible on the SEC’s website and on
or through BlackRock’s website at www.blackrock.com.
We grow our business from time to time by acquiring other
financial services companies, including our pending Sterling
Financial Corporation acquisition. Acquisitions in general
present us with risks in addition to those presented by the
nature of the business acquired. In particular, acquisitions may
be substantially more expensive to complete (including as a
result of costs incurred in connection with the integration of
the acquired company) and the anticipated benefits (including
anticipated cost savings and strategic gains) may be
significantly harder or take longer to achieve than expected. In
some cases, acquisitions involve our entry into new businesses
or new geographic or other markets, and these situations also
present risks resulting from our inexperience in these new
areas. As a regulated financial institution, our pursuit of
attractive acquisition opportunities could be negatively
impacted due to regulatory delays or other regulatory issues.
Regulatory and/or legal issues related to the pre-acquisition
operations of an acquired business may cause reputational
harm to PNC following the acquisition and integration of the
acquired business into ours and may result in additional future
costs arising as a result of those issues.
ITEM
7A –
QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
This information is set forth in the Risk Management section
of Item 7 of this Report.
64