PNC Bank 2007 Annual Report Download - page 9

our primary geographic markets, with certain products and
services provided nationally.
Corporate & Institutional Banking is focused on becoming a
premier provider of financial services in each of the markets it
serves. Its value proposition to its customers is driven by
providing a broad range of competitive and high quality
products and services by a team fully committed to delivering
the comprehensive resources of PNC to help each client
succeed. Corporate & Institutional Banking’s primary goals
are to achieve market share growth and enhanced returns by
means of expansion and retention of customer relationships
and prudent risk and expense management.
B LACK R OCK
BlackRock, Inc. (“BlackRock”) is one of the largest publicly
traded investment management firms in the United States with
$1.357 trillion of assets under management at December 31,
2007. BlackRock manages assets on behalf of institutional and
individual investors worldwide through a variety of fixed
income, cash management, equity and balanced and
alternative investment separate accounts and funds. In
addition, BlackRock provides risk management, investment
system outsourcing and financial advisory services globally to
institutional investors.
At December 31, 2007, our ownership interest in BlackRock
was approximately 33.5%. Our investment in BlackRock is a
strategic asset of PNC and a key component of our diversified
earnings stream. The ability of BlackRock to grow assets
under management is the key driver of increases in its
revenue, earnings and, ultimately, shareholder value.
BlackRock’s strategies for growth in assets under
management include a focus on achieving client investment
performance objectives in a manner consistent with their risk
preferences and delivering excellent client service. The
business dedicates significant resources to attracting and
retaining talented professionals and to the ongoing
enhancement of its investment technology and operating
capabilities to deliver on its strategy.
PFPC
PFPC is a leading full service provider of processing,
technology and business solutions for the global investment
industry. Securities services include custody, securities
lending, and accounting and administration for funds
registered under the 1940 Act and alternative investments.
Investor services include transfer agency, managed accounts,
subaccounting, and distribution. We serviced $2.5 trillion in
total fund assets and 72 million shareholder accounts as of
December 31, 2007 both domestically and internationally.
PFPC’s international and domestic capabilities were expanded
during 2007. We received approval for a banking license in
Ireland and a branch in Luxembourg, which will allow PFPC
to provide depositary services in Europe’s leading domicile
for traditional investment funds and the second largest
worldwide domicile after the United States. The opening of a
sales office in London supported this initiative. The
acquisition of Albridge and Coates Analytics in December
2007 will enhance our business model and product offerings
with the delivery of information services to asset managers,
financial advisors, and the distribution channel to help them
better service their respective target markets.
PFPC focuses technological resources on driving efficiency
through streamlining operations and developing flexible
systems architecture and client-focused servicing solutions.
SUBSIDIARIES Our corporate legal structure at December 31,
2007 consisted of three subsidiary banks, including their
subsidiaries, and approximately 67 active non-bank
subsidiaries. PNC Bank, N.A., headquartered in Pittsburgh,
Pennsylvania, is our principal bank subsidiary. At
December 31, 2007, PNC Bank, N.A. had total consolidated
assets representing approximately 90% of our consolidated
assets. Our other bank subsidiaries are PNC Bank, Delaware
and Yardville National Bank. Our non-bank PFPC subsidiary
has obtained a banking license in Ireland and a branch in
Luxembourg, which allow PFPC to provide depositary
services as part of its business. For additional information on
our subsidiaries, you may review Exhibit 21 to this Report.
STATISTICAL DISCLOSURE BY BANK HOLDING COMPANIES
The following statistical information is included on the
indicated pages of this Report and is incorporated herein by
reference:
Form 10-K page
Average Consolidated Balance Sheet And Net
Interest Analysis 119
Analysis Of Year-To-Year Changes In Net Interest
Income 118
Book Values Of Securities 26 and 84-86
Maturities And Weighted-Average Yield Of
Securities 86
Loan Types 25, 87 and 120
Selected Loan Maturities And Interest Sensitivity 122
Nonaccrual, Past Due And Restructured Loans And
Other Nonperforming Assets 47-48, 74, 89 and 120
Potential Problem Loans And Loans Held For Sale 27 and 47-48
Summary Of Loan Loss Experience 48-49 and 121
Assignment Of Allowance For Loan And Lease
Losses 48-49 and 121
Average Amount And Average Rate Paid On
Deposits 119
Time Deposits Of $100,000 Or More 91 and 122
Selected Consolidated Financial Data 17-18
SUPERVISION AND REGULATION
O VERVIEW
PNC is a bank holding company registered under the Bank
Holding Company Act of 1956 as amended (“BHC Act”) and
a financial holding company under the Gramm-Leach-Bliley
Act (“GLB Act”).
We are subject to numerous governmental regulations, some of
which are highlighted below. You should also read Note 22
Regulatory Matters in the Notes To Consolidated Financial
Statements in Item 8 of this Report, included here by reference,
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