PNC Bank 2008 Annual Report Download - page 3

With the acquisition of National City, our retail franchise now serves more than 6 million consumer and
business customers with a network that exceeds 2,550 branches and 6,200 ATMs. The market reaches
from the Midwest to the Mid-Atlantic, providing access to almost one-third of the total U.S. population
and a strong presence in 33 of the most populated metropolitan areas.
We see excellent opportunities to cross-sell other PNC products, generating higher fee-based revenue.
And there is tremendous potential to expand our workplace and university banking initiatives, which have
proven to be a very successful way of initiating client relationships.
We launched our Virtual Wallet product in August of last year and generated more than 30,000 accounts
through year-end, with more than 60 percent of them new to PNC. These accounts are designed to meet
the banking needs of Gen Y consumers, and they have higher average balances and better retention rates
than our traditional checking accounts.
Offerings for small businesses include treasury management and remote deposit. And earlier this year, we
began an advertising campaign called “CFO: Cash Flow Options” to increase interest in our cash flow
product. Our products, combined with exceptional service, are designed to help us grow our share of
consumer and business customers.
PNC was already one of the leading bank wealth managers in the country. With the combination of PNC
and National City – bringing total assets under management to $110 billion – we have clearly
strengthened that position and created significant growth potential in new high-net-worth and institutional
markets. We have named the combined business segment PNC Asset Management Group, and we see
opportunities for further growth by expanding our highly successful referral process in our new
territories.
We leveraged our market leadership. We continued to invest in our businesses to deepen client
relationships. That is reflected in our Corporate & Institutional Banking segment and in PNC Global
Investment Servicing.
Corporate & Institutional Banking is focused on being a premier provider to middle-market customers.
With national capabilities, this segment offers credit, liquidity and capital markets-related products and
services. In fact, while volume for the syndicated loan market in the United States was down last year,
PNC led the industry in the number of deals completed, and we maintained our leadership positions –
No. 1 in deals and No. 2 in volume – in our legacy footprint. PNC’s Harris Williams, one of the top M&A
advisory firms serving middle-market customers, generated revenue of more than $100 million in 2008.
Treasury Management’s healthcare products had a strong year. This packaged offering, which helps
healthcare providers and third-party payers to manage the increasingly complex healthcare information
and payment process electronically, posted double-digit growth in revenue and transactional volume
in 2008.
Overall, more large corporate, middle-market and municipal customers turned to us for banking
relationships that include credit and fee-based products and services. In fact, we were named “Small
Business Lender of the Year,” by the Export-Import Bank of the United States, reflecting our ability to
provide working capital loans quickly to qualified borrowers.
Last year PNC Global Investment Servicing (formerly PFPC) was renamed to reflect its full scope of
business capabilities and corporate alignment. While the segment was affected by challenging financial
markets, Global Investment Servicing retained its leadership positions in the processing business as the
No. 1 subaccounting provider and No. 2 full-service mutual fund transfer agent in the United States. Total
assets serviced at year end were $2 trillion.
During 2008 Global Investment Servicing expanded its markets with the opening of an office in Poland,
and it earned first place from Money Management Executive for its unified managed account platform.
Earlier this year, it launched full-service processing for exchange-traded funds.
PNC owns 33 percent of BlackRock’s equity. BlackRock, one of the largest publicly traded investment
management firms in the United States, ended 2008 with $1.3 trillion in assets under management. While
revenue was affected by the impact of extremely volatile markets during the second half of the year,
BlackRock’s truly global reach, specialized and well-regarded financial expertise, and commitment to
client service should continue to benefit PNC.