PNC Bank 2009 Annual Report Download - page 58
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• Other noninterest income was $518 million for 2009, an
increase of $565 million from 2008 primarily due to the
National City acquisition.
• Operating lease revenues were $106 million in 2009,
largely due to the National City acquisition. The
combined leasing operations are the 5th largest bank-
affiliated leasing company.
• Valuation and sale income related to our commercial
mortgage loans held for sale, net of hedges, were
$107 million in 2009 compared with losses of $197
million in 2008. Inventory carried at fair value at
December 31, 2009 was $1.1 billion, reduced from
$1.4 billion at December 31, 2008.
• Gains on sales of loans related to our portfolio
management activities were $95 million in 2009. We
sold approximately $1.4 billion of commitments
during 2009.
Provision for credit losses was $1.6 billion in 2009, an
increase of $1.0 billion from 2008, driven by general credit
deterioration, primarily in the real estate, middle market and
transportation related portfolios, and the National City
acquisition. The increases in net charge-offs and
nonperforming assets were primarily due to the National City
acquisition as well as increasing difficulties experienced by
middle market customers.
Noninterest expense was $1.8 billion for 2009, an increase of
$855 million from 2008, due to the National City acquisition.
Otherwise, expenses were essentially flat as lower
compensation-related costs offset higher credit-related and
FDIC insurance costs.
Average loans were $72.1 billion for 2009, an increase of
$36.3 billion from 2008, driven by the National City
acquisition. We continue to experience declines in utilization
rates across our middle market and large corporate customer
groups. We continue to pursue new customers that meet our
risk profile. We added approximately 500 new corporate
clients during 2009. Our PNC Business Credit business
increased new lending commitments over 11%, to $15 billion,
during 2009.
Average deposits were $37.6 billion for 2009, an increase of
$20.2 billion over 2008 primarily due to the National City
acquisition. PNC continued to experience deposit growth
during 2009, including the return of deposits from National
City customers who had previously moved funds to other
institutions.
Harris Williams, our middle market merger and acquisitions
advisory firm, recently opened its first overseas office in
London under the name Harris Williams Limited. This office
provides direct access to European investors.
See the additional revenue discussion regarding treasury
management, capital markets-related products and services,
and commercial mortgage banking activities on page 28.
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