PNC Bank 2013 Annual Report Download - page 238

differences between business segment performance reporting
and financial statement reporting (GAAP), including the
presentation of net income attributable to noncontrolling
interests as the segments’ results exclude their portion of net
income attributable to noncontrolling interests. Assets,
revenue and earnings attributable to foreign activities were not
material in the periods presented for comparative purposes.
B USINESS S EGMENT P RODUCTS AND S ERVICES
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, ATMs, call centers, online banking and
mobile channels. The branch network is located primarily in
Pennsylvania, Ohio, New Jersey, Michigan, Illinois,
Maryland, Indiana, North Carolina, Florida, Kentucky,
Washington, D.C., Delaware, Alabama, Virginia, Missouri,
Georgia, Wisconsin and South Carolina.
Corporate & Institutional Banking provides lending, treasury
management, and capital markets-related products and
services to mid-sized and large corporations, government and
not-for-profit entities. 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, securities, loan syndications
and mergers and acquisitions advisory and related services to
middle-market companies. We also provide commercial loan
servicing, and real estate advisory and technology solutions,
for the commercial real estate finance industry. Products and
services are generally provided 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 administration 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 first lien
residential mortgage loans on a nationwide basis with a
significant presence within the retail banking footprint, and
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
investors 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, 2013, our economic interest in BlackRock was
22%.
PNC received cash dividends from BlackRock of $249 million
during 2013, $225 million during 2012 and $212 million
during 2011.
Non-Strategic Assets Portfolio includes a consumer portfolio
of mainly residential mortgage and brokered home equity
loans and lines of credit, and a small commercial loan and
lease portfolio. We obtained a significant portion of these non-
strategic assets through acquisitions of other companies.
220 The PNC Financial Services Group, Inc. – Form 10-K