PNC Bank 2009 Annual Report Download - page 90

• 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, and by our ability to
meet evolving regulatory capital standards.
• 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.
This material is referenced for informational purposes
only and should not be deemed to constitute a part of this
Report.
In addition, our acquisition of National City Corporation
(National City) on December 31, 2008 presents us with a
number of risks and uncertainties related both to the
acquisition itself and to the integration of the acquired
businesses into PNC. These risks and uncertainties include the
following:
• The anticipated benefits of the transaction, including
anticipated cost savings and strategic gains, may be
significantly harder or take longer to achieve than
expected or may not be achieved in their entirety as a
result of unexpected factors or events.
• Our ability to achieve anticipated results from this
transaction is dependent on the state going forward of the
economic and financial markets, which have been under
significant stress recently. Specifically, we may incur
more credit losses from National City’s loan portfolio
than expected. Other issues related to achieving
anticipated financial results include the possibility that
deposit attrition or attrition in key client, partner and
other relationships may be greater than expected.
• Legal proceedings or other claims made and
governmental investigations currently pending against
National City, as well as others that may be filed, made
or commenced relating to National City’s business and
activities before the acquisition, could adversely impact
our financial results.
• Our ability to achieve anticipated results is also
dependent on our ability to bring National City’s
systems, operating models, and controls into conformity
with ours and to do so on our planned time schedule. The
integration of National City’s business and operations
into PNC, which includes conversion of National City’s
different systems and procedures, may take longer than
anticipated or be more costly than anticipated or have
unanticipated adverse results relating to National City’s
or PNC’s existing businesses. PNC’s ability to integrate
National City successfully may be adversely affected by
the fact that this transaction has resulted in PNC entering
several markets where PNC did not previously have any
meaningful retail presence.
In addition to the National City transaction, we grow our
business from time to time by acquiring other financial
services companies. Acquisitions in general present us with
risks, in addition to those presented by the nature of the
business acquired, similar to some or all of those described
above relating to the National City acquisition.
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.
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