PNC Bank 2011 Annual Report Download - page 212

We have allocated the allowances for loan and lease losses
and for unfunded loan commitments and letters of credit based
on our assessment of risk in each business segment’s loan
portfolio. Our allocation of the costs incurred by operations
and other shared support areas not directly aligned with the
businesses is primarily based on the use of services.
Total business segment financial results differ from
consolidated income from continuing operations before
noncontrolling interests, which itself excludes the earnings
and revenue attributable to GIS through June 30, 2010 and the
related third quarter 2010 after-tax gain on the sale of GIS that
are reflected in discontinued operations. The impact of these
differences is reflected in the “Other” category in the business
segment tables. “Other” includes residual activities that do not
meet the criteria for disclosure as a separate reportable
business, such as gains or losses related to BlackRock
transactions, integration costs, asset and liability management
activities including net securities gains or losses, other-than-
temporary impairment of investment securities and certain
trading activities, exited businesses, alternative investments,
including private equity, intercompany eliminations, most
corporate overhead, tax adjustments that are not allocated to
business segments, and differences between business segment
performance reporting and financial statement reporting
(GAAP), including the presentation of net income attributable
to noncontrolling interests as the segments’ results exclude
their portion of net income attributable to noncontrolling
interests. Assets, revenue and earnings attributable to foreign
activities were not material in the periods presented for
comparative purposes.
B USINESS S EGMENT P RODUCTS A ND S ERVICES
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 located primarily in Pennsylvania, Ohio,
New Jersey, Michigan, Illinois, Maryland, Indiana, Kentucky,
Florida, Washington, D.C., Delaware, Virginia, Missouri,
Wisconsin and Georgia.
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.
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.
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 FNMA, FHLMC, Federal Home Loan Banks and
third-party investors, or are securitized and issued under the
GNMA program. 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.
BlackRock is a leader in investment management, risk
management and advisory services for institutional and retail
clients worldwide. BlackRock provides diversified investment
management services to institutional clients, intermediary and
individual investors through various investment vehicles.
Investment management services primarily consist of the
management of equity, fixed income, multi-asset class,
alternative investment and cash management products.
BlackRock offers its investment products in a variety of
vehicles, including open-end and closed-end mutual funds,
iShares®exchange-traded funds (“ETFs”), collective
investment trusts and separate accounts. In addition,
BlackRock provides market risk management, financial
markets advisory and enterprise investment system services to
a broad base of clients. Financial markets advisory services
include valuation services relating to illiquid securities,
dispositions and workout assignments (including long-term
portfolio liquidation assignments), risk management and
strategic planning and execution. At December 31, 2011, our
economic interest in BlackRock was 21%.
The PNC Financial Services Group, Inc. – Form 10-K 203