PNC Bank 2012 Annual Report Download - page 252

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 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.
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 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 loan applications are brokered by
majority owned affiliates 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.
We hold an equity investment in BlackRock, which is a key
component of our diversified revenue strategy. BlackRock is a
publicly traded company, and additional information regarding
its business is available in its filings with the Securities and
Exchange Commission (SEC). At December 31, 2012, our
economic interest in BlackRock was 22%.
PNC received cash dividends from BlackRock of $225 million
during 2012, $212 million during 2011, and $178 million
during 2010.
Non-Strategic Assets Portfolio (formerly, Distressed Assets
Portfolio) includes a consumer portfolio of mainly residential
mortgage and brokered home equity loans and a small
commercial loan and lease portfolio. We obtained a significant
portion of these non-strategic assets through acquisitions of
other companies.
The PNC Financial Services Group, Inc. – Form 10-K 233