PNC Bank 2013 Annual Report Download - page 122

C AUTIONARY S TATEMENT R EGARDING
F ORWARD -L OOKING I NFORMATION
We make statements in this Report, and we may from time to
time make other statements, regarding our outlook for earnings,
revenues, expenses, capital and liquidity levels and ratios, asset
levels, asset quality, financial position, and other matters
regarding or affecting PNC and its future business and
operations that are forward-looking statements within the
meaning of the Private Securities Litigation Reform Act.
Forward-looking statements are typically identified by words
such as “believe,” “plan,” “expect,” “anticipate,” “see,” “look,”
“intend,” “outlook,” “project,” “forecast,” “estimate,” “goal,”
“will,” “should” and other similar words and expressions.
Forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time.
Forward-looking statements speak only as of the date made. We
do not assume any duty and do not undertake to update forward-
looking statements. Actual results or future events could differ,
possibly materially, from those anticipated in forward-looking
statements, as well as from historical performance.
Our forward-looking statements are subject to the following
principal risks and uncertainties.
• Our businesses, financial results and balance sheet
values are affected by business and economic
conditions, including the following:
– Changes in interest rates and valuations in debt,
equity and other financial markets.
– Disruptions in the liquidity and other functioning
of U.S. and global financial markets.
– The impact on financial markets and the economy
of any changes in the credit ratings of U.S.
Treasury obligations and other U.S. government-
backed debt, as well as issues surrounding the
levels of U.S. and European government debt and
concerns regarding the creditworthiness of certain
sovereign governments, supranationals and
financial institutions in Europe.
– Actions by the Federal Reserve, U.S. Treasury
and other government agencies, including those
that impact money supply and market interest
rates.
– Changes in customers’, suppliers’ and other
counterparties’ performance and
creditworthiness.
– Slowing or reversal of the current U.S. economic
expansion.
– Continued residual effects of recessionary
conditions and uneven spread of positive impacts
of recovery on the economy and our
counterparties, including adverse impacts on
levels of unemployment, loan utilization rates,
delinquencies, defaults and counterparty ability
to meet credit and other obligations.
– Changes in customer preferences and behavior,
whether due to changing business and economic
conditions, legislative and regulatory initiatives,
or other factors.
• Our forward-looking financial statements are subject to
the risk that economic and financial market conditions
will be substantially different than we are currently
expecting. These statements are based on our current
view that the U.S. economic expansion will speed up to
a trend growth rate near 2.5 percent in 2014 as drags
from Federal fiscal restraint subside and that short-term
interest rates will remain very low and bond yields will
rise only slowly in 2014. These forward-looking
statements also do not, unless otherwise indicated, take
into account the impact of potential legal and regulatory
contingencies.
• PNC’s ability to take certain capital actions,
including paying dividends and any plans to increase
common stock dividends, repurchase common stock
under current or future programs, or issue or redeem
preferred stock or other regulatory capital
instruments, is subject to the review of such proposed
actions by the Federal Reserve as part of PNC’s
comprehensive capital plan for the applicable period
in connection with the regulators’ Comprehensive
Capital Analysis and Review (CCAR) process and to
the acceptance of such capital plan and non-objection
to such capital actions by the Federal Reserve.
• PNC’s regulatory capital ratios in the future will
depend on, among other things, the company’s
financial performance, the scope and terms of final
capital regulations then in effect (particularly those
implementing the Basel Capital Accords), and
management actions affecting the composition of
PNC’s balance sheet. In addition, PNC’s ability to
determine, evaluate and forecast regulatory capital
ratios, and to take actions (such as capital
distributions) based on actual or forecasted capital
ratios, will be dependent on the ongoing
development, validation and regulatory approval of
related models.
• Legal and regulatory developments could have an
impact on our ability to operate our businesses,
financial condition, results of operations, competitive
position, reputation, or pursuit of attractive
acquisition opportunities. Reputational impacts could
affect matters such as business generation and
retention, liquidity, funding, and ability to attract and
retain management. These developments could
include:
– Changes resulting from legislative and
regulatory reforms, including major reform of
the regulatory oversight structure of the financial
services industry and changes to laws and
regulations involving tax, pension, bankruptcy,
consumer protection, and other industry aspects,
and changes in accounting policies and
104 The PNC Financial Services Group, Inc. – Form 10-K