PNC Bank 2010 Annual Report Download - page 100
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Please find page 100 of the 2010 PNC Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.credit quality with different maturities. For example, a
“normal” or “positive” yield curve exists when long-term
bonds have higher yields than short-term bonds. A “flat” yield
curve exists when yields are the same for short-term and long-
term bonds. A “steep” yield curve exists when yields on long-
term bonds are significantly higher than on short-term bonds.
An “inverted” or “negative” yield curve exists when short-
term bonds have higher yields than long-term bonds.
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We make statements in this Report, and we may from time to
time make other statements, regarding our outlook or
expectations for earnings, revenues, expenses, capital levels,
liquidity levels, asset quality and/or other matters regarding or
affecting PNC that are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act.
Forward-looking statements are typically identified by words
such as “believe,” “plan,” “expect,” “anticipate,” “intend,”
“outlook,” “estimate,” “forecast,” “will,” “should,” “project,”
“goal” and other similar words and expressions.
Forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date they are
made. We do not assume any duty and do not undertake to
update our forward-looking statements. Actual results or
future events could differ, possibly materially, from those that
we anticipated in our forward-looking statements, and future
results could differ materially from our historical
performance.
Our forward-looking statements are subject to the following
principal risks and uncertainties. We provide greater detail
regarding some of these factors elsewhere in this Report,
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.
– A slowing or failure of the moderate economic
recovery that began in mid-2009 and continued
throughout 2010.
– Continued effects of the aftermath of recessionary
conditions and the uneven spread of the positive
impacts of the recovery on the economy in general
and our customers in particular, including adverse
impact on loan utilization rates as well as
delinquencies, defaults and customer ability to meet
credit obligations.
– Changes in levels of unemployment.
– Changes in customer preferences and behavior,
whether as a result of changing business and
economic conditions, climate-related physical
changes or legislative and regulatory initiatives, or
other factors.
• Turbulence in significant portions of the US and global
financial markets 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.
• We will be impacted by the extensive reforms provided
for in Dodd-Frank and ongoing reforms impacting the
financial institutions industry generally. Further, as much
of that Act will require the adoption of implementing
regulations by a number of different regulatory bodies,
the precise nature, extent and timing of many of these
reforms and the impact on us is still uncertain.
• Financial industry restructuring in the current
environment could also impact our business and financial
performance as a result of changes in the
creditworthiness and performance of our counterparties
and by changes in the competitive and regulatory
landscape.
• Our results depend on our ability to manage current
elevated levels of impaired assets.
• 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 view that the
moderate economic recovery that began in mid-2009 and
continued throughout 2010 will slowly gather enough
momentum in 2011 to lower the unemployment rate
amidst continued low interest rates.
• 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,
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