PNC Bank 2010 Annual Report Download - page 5

Our response differs. We are seeking to increase customers and deepen our relationships
with them. As a result, we are offering new, integrated payment products that connect
checking, credit, debit and rewards, and that leverage our highly successful Virtual Wallet
bank account offering.
This approach reflects our extensive research, indicating customers want choice, transparency
and value from their bank. We believe this is consistent with our brand promise to customers
and employees and is aligned to our shareholders’ expectations.
Asset Management Group Our Asset Management Group had an
outstanding 2010, with full year earnings up 34 percent compared with
2009. Asset flows improved through the year, picking up speed in the
second half. This sales momentum combined with a year-end lift in equity
markets helped us reach $212 billion in assets under administration by
year end. Assets under management totaled $108 billion.
Despite extreme market volatility in the last two years, Asset Management has consistently
grown sales and acquired new clients. Referrals from other PNC business units, including
Retail Banking and Corporate & Institutional Banking, enabled us to end 2010 with one of the
strongest prospect pipelines we have ever had. In fact, total sales and referrals from PNC
businesses increased 60 percent in comparison with 2009 and now make up 30 percent of
overall sales. We believe these in-house referrals to be among the best in the industry, and we
think we can do even better by spreading the practice to more PNC units.
A strong pipeline gives us the confidence to invest aggressively in Asset Management.
Last year, we hired approximately 500 employees, placing many of them in higher-potential
markets such as Chicago, Florida, Milwaukee and Washington, D.C. We are not finished.
Over the next two years, we expect to add 400 more employees in this business.
We are investing in technology as well as people. Later this year, we will introduce a new tool
specifically designed to give our high-net-worth clients a consolidated view of their assets in
much the same way Virtual Wallet provides retail customers with a high-definition view of their
money. This tool, called Wealth Insight, will provide our Asset Management customers with
more information about their assets, and we believe it will give us a competitive advantage in
the marketplace.
Residential Mortgage Banking Two years ago, PNC made the decision to return to the national
residential mortgage business as it is a key consumer-banking product. We believe this strategy
provides us with opportunities to deepen customer relationships while maintaining our focus on
moderate risk.
Assets Under Management
Billions
$57
$103
2008 2009 2010
$108