PNC Bank 2011 Annual Report Download - page 12

Business Segment Highlights, Product Revenue, and Business
Segments Review in Item 7 of this Report here by reference.
Also, we include the financial and other information by
business in Note 25 Segment Reporting in the Notes To
Consolidated Financial Statements in Item 8 of this Report
here by reference.
Assets, revenue and earnings attributable to foreign activities
were not material in the periods presented. Business segment
results for periods prior to 2011 have been reclassified to
reflect current methodologies and current business and
management structure and to present those periods on the
same basis. Business segment information does not include
PNC Global Investment Servicing Inc. (GIS). Results of
operations of GIS through June 30, 2010 and the related
after-tax gain on its sale in the third quarter of 2010 are
reflected in discontinued operations.
Retail Banking provides deposit, lending, brokerage,
investment management, and cash management services to
consumer and small business customers within our primary
geographic markets. Our customers are serviced through our
branch network, call centers and online banking channels. The
branch network is principally located in our primary
geographical markets.
Our core strategy is to acquire and retain customers who
maintain their primary checking and transaction relationships
with PNC. We also seek revenue growth by deepening our
share of our customers’ financial assets, including savings and
liquidity deposits, loans and investable assets. A key element
of our strategy is to expand the use of lower-cost alternative
distribution channels while continuing to optimize the
traditional branch network. In addition, we have a disciplined
process to continually improve the engagement of both our
employees and customers, which is a strong indicator of
customer growth, retention and relationship expansion.
Corporate & Institutional Banking provides lending, treasury
management, and capital markets-related products and
services to mid-sized corporations, government and
not-for-profit entities, and selectively to large corporations.
Lending products include secured and unsecured loans, letters
of credit and equipment leases. Treasury management services
include cash and investment management, receivables
management, disbursement services, funds transfer services,
information reporting, and global trade services. Capital
markets-related products and services include foreign
exchange, derivatives, loan syndications, mergers and
acquisitions advisory and related services to middle-market
companies, our multi-seller conduit, securities underwriting,
and securities sales and trading. Corporate & Institutional
Banking also provides commercial loan servicing, and real
estate advisory and technology solutions for the commercial
real estate finance industry. Corporate & Institutional Banking
provides products and services generally within our primary
geographic markets, with certain products and services offered
nationally and internationally.
Corporate & Institutional Banking is focused on becoming a
premier provider of financial services in each of the markets it
serves. The value proposition to its customers is driven by
providing a broad range of competitive and high quality
products and services by a team fully committed to delivering
the comprehensive resources of PNC to help each client
succeed. Corporate & Institutional Banking’s primary goals
are to achieve market share growth and enhanced returns by
means of expansion and retention of customer relationships
and prudent risk and expense management.
Asset Management Group includes personal wealth
management for high net worth and ultra high net worth
clients and institutional asset management. Wealth
management products and services include financial and
retirement planning, customized investment management,
private banking, tailored credit solutions and trust
management and administration for individuals and their
families. Institutional asset management provides investment
management, custody, and retirement planning services. The
institutional clients include corporations, unions,
municipalities, non-profits, foundations and endowments
located primarily in our geographic footprint.
Asset Management Group is focused on being one of the
premier bank-held individual and institutional asset managers
in each of the markets it serves. The business seeks to deliver
high quality advice and investment management to our high
net worth, ultra high net worth and institutional client sectors
through a broad array of products and services. Asset
Management Group’s primary goals are to service its clients,
grow its business and deliver solid financial performance with
prudent risk and expense management.
Residential Mortgage Banking directly originates primarily
first lien residential mortgage loans on a nationwide basis with
a significant presence within the retail banking footprint, and
also originates loans through majority owned affiliates.
Mortgage loans represent loans collateralized by one-to-four-
family residential real estate. These loans are typically
underwritten to government agency and/or third-party
standards, and sold, servicing retained, to secondary mortgage
conduits Federal National Mortgage Association (FNMA),
Federal Home Loan Mortgage Corporation (FHLMC), Federal
Home Loan Banks and third-party investors, or are securitized
and issued under the Government National Mortgage
Association (GNMA) program, as described in more detail in
Note 3 Loan Sale and Servicing Activities and Variable
Interest Entities in Item 8 of this Report and included here by
reference. The mortgage servicing operation performs all
functions related to servicing mortgage loans – primarily those
in first lien position – for various investors and for loans
owned by PNC. Certain loans originated through majority
owned affiliates are sold to others.
Residential Mortgage Banking is focused on adding value to
the PNC franchise by building stronger customer
relationships, providing quality investment loans, and
The PNC Financial Services Group, Inc. – Form 10-K 3