PNC Bank 2012 Annual Report Download - page 21

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, online banking and mobile
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, including
retirement 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 our 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 investment 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 administration services.
Institutional clients include corporations, unions,
municipalities, non-profits, foundations and endowments,
primarily located 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 banking advice and trust and investment
management services 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 our clients, grow the 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 of 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 loan applications are brokered by majority
owned affiliates to others.
Residential Mortgage Banking is focused on adding value to
the PNC franchise by building stronger customer
relationships, providing quality investment loans, and
delivering acceptable returns consistent with a moderate risk
philosophy. Our national distribution capability provides
volume that drives economies of scale, risk dispersion, and
cost-effective extension of the retail banking footprint for
cross-selling opportunities.
BlackRock is a leader in investment management, risk
management and advisory services for institutional and retail
clients worldwide. BlackRock provides diversified investment
2The PNC Financial Services Group, Inc. – Form 10-K