PNC Bank 2013 Annual Report Download - page 123

principles. We will be impacted by extensive
reforms provided for in the Dodd-Frank Wall
Street Reform and Consumer Protection Act (the
“Dodd-Frank Act”) and otherwise growing out
of the most recent financial crisis, the precise
nature, extent and timing of which, and their
impact on us, remains uncertain.
– Changes to regulations governing bank capital
and liquidity standards, including due to the
Dodd-Frank Act and to Basel-related initiatives.
– Unfavorable resolution of legal proceedings or
other claims and regulatory and other
governmental investigations or other inquiries.
In addition to matters relating to PNC’s business
and activities, such matters may include
proceedings, claims, investigations, or inquiries
relating to pre-acquisition business and activities
of acquired companies, such as National City.
These matters may result in monetary judgments
or settlements or other remedies, including fines,
penalties, restitution or alterations in our
business practices, and in additional expenses
and collateral costs, and may cause reputational
harm to PNC.
– Results of the regulatory examination and
supervision process, including our failure to
satisfy requirements of agreements with
governmental agencies.
– Impact on business and operating results of any
costs associated with obtaining rights in
intellectual property claimed by others and of
adequacy of our intellectual property protection
in general.
• Business and operating results are affected by our
ability to identify and effectively manage risks
inherent in our businesses, including, where
appropriate, through effective use of third-party
insurance, derivatives, and capital management
techniques, and to meet evolving regulatory capital
and liquidity standards. In particular, our results
currently depend on our ability to manage elevated
levels of impaired assets.
• Business and operating results also include impacts
relating to our equity interest in BlackRock, Inc. and
rely to a significant extent on information provided to
us by BlackRock. Risks and uncertainties that could
affect BlackRock are discussed in more detail by
BlackRock in its SEC filings.
• We grow our business in part by acquiring from time
to time other financial services companies, financial
services assets and related deposits and other
liabilities. Acquisition risks and uncertainties include
those presented by the nature of the business
acquired, including in some cases those associated
with our entry into new businesses or new geographic
or other markets and risks resulting from our
inexperience in those new areas, as well as risks and
uncertainties related to the acquisition transactions
themselves, regulatory issues, and the integration of
the acquired businesses into PNC after closing.
• Competition can have an impact on customer
acquisition, growth and retention and on credit
spreads and product pricing, which can affect market
share, deposits and revenues. Industry restructuring
in the current environment could also impact our
business and financial performance through changes
in counterparty creditworthiness and performance
and in the competitive and regulatory landscape. Our
ability to anticipate and respond to technological
changes can also impact our ability to respond to
customer needs and meet competitive demands.
• Business and operating results can also be affected by
widespread natural and other disasters, dislocations,
terrorist activities, cyberattacks or international
hostilities through impacts on the economy and
financial markets generally or on us or our
counterparties specifically.
We provide greater detail regarding these as well as other
factors elsewhere in this Report, including in the Risk Factors
and Risk Management sections and the Legal Proceedings and
Commitments and Guarantees Notes of the Notes To
Consolidated Financial Statements in this Report. Our
forward-looking statements may also be subject to other risks
and uncertainties, including those discussed elsewhere in this
Report or in our other filings with the SEC.
I TEM 7 A – QUANTITATIVE AND QUALITATIVE
DISCLOSURES ABOUT MARKET RISK
This information is set forth in the Risk Management section
of Item 7 and in Note 1 Accounting Policies, Note 9 Fair
Value, and Note 17 Financial Derivatives in the Notes To
Consolidated Financial Statements in Item 8 of this Report.
The PNC Financial Services Group, Inc. – Form 10-K 105