PNC Bank 2008 Annual Report Download - page 82

including in the Risk Factors and Risk Management sections.
Our forward-looking statements may also be subject to other
risks and uncertainties, including those discussed elsewhere in
this Report or in our other filings with the SEC.
• Our businesses and financial results are affected by
business and economic conditions, both generally and
specifically in the principal markets in which we operate.
In particular, our businesses and financial results may be
impacted by:
– Changes in interest rates and valuations in the debt,
equity and other financial markets.
– Disruptions in the liquidity and other functioning of
financial markets, including such disruptions in the
markets for real estate and other assets commonly
securing financial products.
– Actions by the Federal Reserve and other
government agencies, including those that impact
money supply and market interest rates.
– Changes in our customers’, suppliers’ and other
counterparties’ performance in general and their
creditworthiness in particular.
– Changes in customer preferences and behavior,
whether as a result of changing business and
economic conditions or other factors.
• A continuation of recent turbulence in significant
portions of the US and global financial markets,
particularly if it worsens, could impact our performance,
both directly by affecting our revenues and the value of
our assets and liabilities and indirectly by affecting our
counterparties and the economy generally.
• Our business and financial performance could be
impacted as the financial industry restructures in the
current environment, both by changes in the
creditworthiness and performance of our counterparties
and by changes in the competitive landscape.
• Given current economic and financial market conditions,
our forward-looking financial statements are subject to
the risk that these conditions will be substantially
different than we are currently expecting. These
statements are based on our current expectations that
interest rates will remain low through 2009 with
continued wide market credit spreads, and our view that
national economic trends currently point to a
continuation of severe recessionary conditions in 2009
followed by a subdued recovery.
• Legal and regulatory developments could have an impact
on our ability to operate our businesses or our financial
condition or results of operations or our competitive
position or reputation. Reputational impacts, in turn,
could affect matters such as business generation and
retention, our ability to attract and retain management,
liquidity, and funding. These legal and regulatory
developments could include:
– Changes resulting from the Emergency Economic
Stabilization Act of 2008, the American Recovery
and Reinvestment Act of 2009, and other
developments in response to the current economic
and financial industry environment, including current
and future conditions or restrictions imposed as a
result of our participation in the TARP Capital
Purchase Program.
– Legislative and regulatory reforms generally,
including changes to laws and regulations involving
tax, pension, bankruptcy, consumer protection, and
other aspects of the financial institution industry.
– Increased litigation risk from recent regulatory and
other governmental developments.
– Unfavorable resolution of legal proceedings or
regulatory and other governmental inquiries.
– The results of the regulatory examination and
supervision process, including our failure to satisfy
the requirements of agreements with governmental
agencies.
– Changes in accounting policies and principles.
• Our issuance of securities to the US Department of the
Treasury may limit our ability to return capital to our
shareholders and is dilutive to our common shares. If we
are unable previously to redeem the shares, the dividend
rate increases substantially after five years.
• 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.
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