PNC Bank 2013 Annual Report Download - page 8

A foundation built to win
Our potential for success as we move forward is magnified by the powerful combination of our
business model, our culture and our people.
We have a model that serves us well. For years – especially as we have expanded into new markets
– our Main Street, relationship-based banking model has been a competitive advantage, enabling us
to bring the resources of a bank with our size and scale to bear for clients and communities through
local decision making and personal relationships.
Our culture and our people set us apart. Our employees live our values each day to deliver for our
constituencies as one PNC. We believe we can win by always doing what we know to be right by
those we depend on and those that we serve, and we measure our success by the success of our
shareholders, customers, communities and each other.
In 2013, we were pleased to receive a number of accolades recognizing PNC for the company we
have become. We again ranked No. 2 on Fortune’s Most-Admired list for Super-Regional Banks,
and ranked No.1 for social responsibility. For the third year in a row, PNC was named a Gallup Great
Workplace Award winner. Training Magazine listed us among their top 125 companies for employee
training. And we earned honors as a best place to work for LGBT equality, a top-100 best company
and a top-50 company for executive women from the Human Rights Campaign, Working Mother and
the National Association for Female Executives, respectively.
Managing risk and building on our strong capital position
Banks are, by the nature of what we do, in the business of managing risk. Our success is
determined by how well we define our risk appetite and manage our risks to adhere to those
parameters. Of course, that has become more complicated in recent years.
Risk management is not just an exercise in credit policy; it involves operational, market, credit,
liquidity and model risk, among others, as well as reputational risk. And we look at risks from
both a perspective of potential outcomes and across a range of potential stress scenarios through
our internal stress testing and the CCAR process. PNC has a legacy of managing its risk appetite
through the economic cycle, and our approach to risk management has served us and our
constituencies well through the years.
Disciplined risk management goes hand-in-hand with establishing a strong capital
position to help ensure our ability to capitalize on opportunities when they arise as well
as to sustain and continue executing on strategic priorities when faced with changing
market conditions. In 2013, PNC continued to build on its strong capital position.
Our Basel I Tier 1 common capital ratio increased to 10.5 percent as of December
31, and our pro forma fully phased-in Basel III Tier 1 common capital ratio under the
standardized approach was an estimated 9.4 percent at year end.
Basel I Tier 1
common capital ratio
at year end
2012 2013
10.5 %
9.6%