PNC Bank 2010 Annual Report Download - page 61
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Please find page 61 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.Highlights of Corporate & Institutional Banking performance
during 2010 include:
• Achieved record client growth as new customers
were added at approximately twice the pace of any
previous year. We added more than 1,100 new
clients.
• Successfully completed the conversion of over
12,000 customers which resulted in a significant
increase in cross sales opportunities, particularly in
the western markets.
• Treasury Management delivered record
revenue for the year and grew favorably when
compared to the industry average.
• Some of the largest Capital Markets
transactions in the history of PNC were
recorded in 2010 which contributed to a record
year in revenue earned for this business.
• Midland Loan Services, one of the leading
third-party providers of servicing for the
commercial real estate industry, received the
highest US servicer and special servicer ratings
from Fitch Ratings and Standard & Poor’s and
is in its 11th consecutive year of achieving these
ratings.
• Midland was the number one servicer of
FNMA and FHLMC loans and was the second
leading servicer of commercial and multifamily
loans by volume as of December 31, 2010
according to Mortgage Bankers Association.
• Greenwich Associates awarded PNC the 2010
Excellence Awards in Middle Market Banking
for Financial Stability and in Treasury
Management for Customer Service.
Net interest income for 2010 was $3.5 billion, a decrease of
$288 million from 2009, due to a decrease in average loans
and lower interest credits assigned to deposits.
Corporate service fees were $961 million for 2010, an
increase of $46 million over 2009 primarily due to higher
merger and acquisition advisory and ancillary commercial
mortgage servicing fees. This increase was partially offset by
a reduction in the value of commercial mortgage servicing
rights driven by lower interest rates. The major components of
corporate service fees are treasury management, corporate
finance fees and commercial mortgage servicing revenue.
• Our Treasury Management business, which is ranked
in the top ten nationally, continued to invest in
markets, products and infrastructure as well as major
initiatives such as healthcare. The healthcare
initiative is designed to help provide our customers
opportunities to reduce operating costs. Healthcare-
related revenues in 2010 increased over 25% from
2009.
• Harris Williams is one of the nation’s largest and
most successful mergers and acquisitions advisory
teams focused exclusively on the middle markets.
Revenues increased over $80 million in 2010
compared with 2009 on higher deal activity driven by
the improved financing environment. Harris Williams
established its first overseas operation in London
during 2010.
Other noninterest income was $402 million for 2010, a
decrease of $116 million from 2009 primarily due to a decline
in the income associated with commercial mortgage loans
held for sale, net of hedges, and the sale of the duplicative
agency servicing operation in the second quarter of 2010.
The provision for credit losses was $303 million in 2010
compared with $1.6 billion in 2009. The decline reflected
improvements in portfolio credit quality along with lower loan
and commitment levels. Net charge-offs for 2010 of $1.1
billion increased 2% compared with 2009. Nonperforming
assets were $2.6 billion in 2010, down from $3.2 billion in
2009.
Noninterest expense was $1.8 billion for both 2010 and 2009.
Increases in compensation costs related to revenue and credit-
related expenses were essentially offset by the impact of the
sale of the duplicative agency servicing operation in the
second quarter of 2010.
Average loans were $64 billion for 2010 compared with $72
billion in 2009. Excluding the impact of the 2010 Market
Street consolidation, which contributed $2 billion to average
loans in 2010, average loans decreased $10 billion or 13%
compared with 2009. The decrease was due to exits of certain
client relationships combined with continued soft new loan
originations and utilization rates.
• PNC Real Estate provides commercial real estate and
real-estate related lending and is one of the industry’s
largest providers of both conventional and affordable
multifamily financing. Commercial real estate loans
declined in 2010 due to reduced demand, paydowns
and charge-offs.
• Business Credit is one of the largest asset-based
lenders in the country. It expanded its operations with
the acquisition of an asset-based lending group in the
United Kingdom which was completed in November
2010. Total loans acquired were approximately $300
million.
• PNC Equipment Finance is the 6th largest bank-
affiliated leasing company with over $9 billion in
equipment finance assets. Average loans and leases
declined approximately $.2 billion for 2010
compared with 2009 due to runoff and sales of
non-strategic portfolios more than offsetting portfolio
acquisitions and improved origination volumes
within our middle market customer base.
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