PNC Bank 2011 Annual Report Download - page 9

New Challenges and New Opportunities This year will bring new
challenges and a continuation of some past ones. The Federal Open Market Committee has
signaled low interest rates into 2014. An already difficult political climate will feature a highly
contentious presidential election. The economic outlook is for a modest recovery, but that
depends on events over which we have little or no control. From the European debt crisis to
American consumers’ worries about jobs and housing, the dangers are many. In this environment,
all banks will be challenged.
Despite these circumstances, we believe we are better off than virtually all of our
competitors on a relative basis. The longer these conditions exist, the greater our
opportunities for market share growth at the expense of smaller banks that are
either unwilling or unable to deploy the necessary resources to overcome increased
regulatory expenses, reduced fees and low rates. This environment also affects global banks, which
are facing higher capital requirements along with regulations that will limit some business activities.
For large regional banks like PNC, regulatory changes represent a considerable work set, but
we believe it is manageable. We must move forward to seize this moment, execute on our priorities
and continue to build our business. Five years from now, we want to look back at this moment
and say: We saw the opportunity and we made the most of it.
There is no magic formula to make the industry’s challenges disappear. At PNC, we believe our
effective leadership team, focus on more and deeper customer relationships, strong risk and
expense management, and a solid reputation for acting in our customers’ best interests remain
the best strategy.
In difficult times, it is important to take the long view, and that is something we have always done
at PNC. This year marks our 160th as PNC traces its roots to 1852, when the Pittsburgh Trust
Company opened near Fifth Avenue and Wood Street, the same corner where our headquarters
stands today. More than a century and a half later, PNC remains committed to helping businesses
and consumers achieve their goals.
We are proud of our company’s performance in 2011 and are confident that our best days lie ahead
as we continue to build a great company. As it has for the last 160 years, you can expect PNC to
deliver for our customers, shareholders, employees and communities.
Sincerely,
James E. Rohr
Chairman and Chief Executive Officer
Five years from now, we want to
look back at this moment and say:
We saw the opportunity and
we made the most of it.
For more information regarding certain factors
that could cause future results to differ, possibly
materially, from historical performance or from
those anticipated in forward-looking statements,
see the Cautionary Statement in Item 7 of our
2011 Annual Report on Form 10-K, which
accompanies this letter.