PNC Bank 2010 Annual Report Download - page 4

In the end, we believe our capital position, together with our earnings potential, gives us the
flexibility to comply with new regulatory capital requirements when finalized while still returning
capital to our shareholders.
The progress we made and our results in 2010 contributed to a 15 percent increase in PNC’s
share price. Taking a longer view, we ranked third among our peers in total shareholder return
on a five-year basis. For the same period, we outperformed the overall stock market index, the
S&P 500 index, the S&P 500 bank index and our peer group average.*
Serving the Needs of Consumers and Small Business The combination of Retail
Banking, Residential Mortgage Banking and our Asset Management Group accounted for
nearly half of our 2010 revenue. We offer a broad array of products and services for individual
consumers, small businesses, colleges and universities, and institutional clients.
Retail Banking PNC has more than 5.4 million consumer and small
business checking relationships, which we see as a cornerstone product
in our client acquisition strategy. We increased these relationships by
75,000 and grew average transaction deposits by more than $3 billion
in 2010.
While we attract the majority of our new customers through our 2,500
branches, 38 percent of our total account acquisition in 2010 came
through alternative channels. These channels play an important role in
our client acquisition success.
For example, through our University Banking program, we currently have relationships with
more than 200 colleges and universities, an increase of nearly 75 percent from 2009. This
program gives us the opportunity to market PNC’s retail products to more than 300,000
incoming freshmen and approximately 1.9 million students overall. Once we have these
customers in the door, our wide branch network and innovative products provide us with
long-term retention opportunities.
In my tenure at PNC, few changes have been as notable as the decline of paper checks.
Customers have been moving away from checks and toward electronic payments at an
accelerating pace. At the same time, we are seeing tremendous growth in mobile banking.
At PNC, we recognize that changes in customer preferences along with financial reform will
affect Retail Banking. We know that many of our peers have announced increased fees and the
elimination of free checking, which we believe will result in significant market disruption.
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* PNC’s 2010 peer group consists of BB&T Corporation, Bank of America Corporation, Capital One Financial, Inc., Comerica Inc., Fifth Third
Bancorp, JPMorgan Chase, KeyCorp, M&T Bank, Regions Financial Corporation, SunTrust Banks, Inc., U.S. Bancorp, and Wells Fargo & Co.
Checking Relationships
Thousands
2,402
5,390
2008 2009 2010
5,465