PNC Bank 2014 Annual Report Download - page 19

PART I
Forward-Looking Statements: From time to time, The PNC Financial Services Group, Inc. (PNC or the Corporation) has made
and may continue to make written or oral forward-looking 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 or the impact of legal, regulatory or supervisory matters on our business operations or
performance. This Annual Report on Form 10-K (the Report or Form 10-K) also includes forward-looking statements. With respect
to all such forward-looking statements, you should review our Risk Factors discussion in Item 1A, our Risk Management, Critical
Accounting Estimates And Judgments, and Cautionary Statement Regarding Forward-Looking Information sections included in
Item 7, and Note 21 Legal Proceedings and Note 22 Commitments and Guarantees in the Notes To Consolidated Financial
Statements included in Item 8 of this Report. See page 99 for a glossary of certain terms used in this Report.
ITEM 1 – BUSINESS
Business Overview
Headquartered in Pittsburgh, Pennsylvania, we are one of the
largest diversified financial services companies in the United
States. We have businesses engaged in retail banking,
corporate and institutional banking, asset management, and
residential mortgage banking, providing many of our products
and services nationally, as well as other products and services
in our primary geographic markets located in Pennsylvania,
Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana,
North Carolina, Florida, Kentucky, Washington, D.C.,
Delaware, Virginia, Alabama, Missouri, Georgia, Wisconsin
and South Carolina. We also provide certain products and
services internationally. At December 31, 2014, our
consolidated total assets, total deposits and total shareholders’
equity were $345.1 billion, $232.2 billion and $44.6 billion,
respectively.
We were incorporated under the laws of the Commonwealth
of Pennsylvania in 1983 with the consolidation of Pittsburgh
National Corporation and Provident National Corporation.
Since 1983, we have diversified our geographical presence,
business mix and product capabilities through internal growth,
strategic bank and non-bank acquisitions and equity
investments, and the formation of various non-banking
subsidiaries.
Review Of Business Segments
In addition to the following information relating to our lines of
business, we incorporate the information under the captions
Business Segment Highlights and Business Segments Review
in Item 7 of this Report here by reference. Also, we include
the financial and other information by business in Note 24
Segment Reporting in the Notes To Consolidated Financial
Statements in Item 8 of this Report here by reference.
Assets, revenue and earnings attributable to foreign activities
were not material in the periods presented. Business segment
results for periods prior to 2014 have been reclassified to reflect
current methodologies and current business and management
structure and to present those periods on the same basis.
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, Virginia, Alabama, Missouri,
Georgia, Wisconsin and South Carolina.
Our core strategy is to acquire and retain customers who
maintain their primary checking and transaction relationships
with PNC. We also seek revenue growth by deepening our
share of our customers’ financial assets, such as savings and
liquidity deposits, loans and investable assets, including
retirement assets. A strategic priority for PNC is to redefine
the retail banking business in response to changing customer
preferences. A key element of this strategy is to expand the
use of lower-cost alternative distribution channels while
continuing to optimize the traditional branch network. In
addition, we have a disciplined process to continually improve
the engagement of both our employees and customers, which
is a strong indicator of customer growth, retention and
relationship expansion.
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,
mergers and acquisitions advisory, equity capital markets
advisory and related services. 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.
The PNC Financial Services Group, Inc. – Form 10-K 1