PNC Bank 2014 Annual Report Download - page 3

Dear Shareholders,
PNC had another successful year in 2014. We reported net income of
$4.2 billion, or $7.30 per diluted common share. Our return on average
assets was 1.28 percent. We added customers, grew loans by $9.2 billion
and increased deposits by $11.3 billion. Additionally, we reduced expenses by
nearly $200 million, strengthened our capital position and achieved a more
liquid balance sheet.
The fourth quarter of 2014 was PNC’s seventh consecutive quarter of $1 billion or more in net income.
While past performance does not guarantee future results, that consistency through what continues to
be a very challenging revenue environment is a testament to the soundness of our strategic direction
and the commitment of our employees to creating long-term value for our shareholders.
In 2014, we grew tangible book value, an important estimate of shareholder value, by 10 percent over
the prior year. Also, PNC’s stock reached an all-time high share
price in December and fi nished the year 18 percent higher than
at the close of 2013. That performance ranked second among the
fi rms in our identifi ed peer group, which averaged a 9 percent
increase, and compared favorably with 11 percent for the S&P 500.
We also returned signifi cant capital to shareholders in 2014.
We announced plans to repurchase up to $1.5 billion worth of
common shares over the four quarters beginning in April 2014.
Under that plan, as of December 31, we had repurchased 12.9 million common shares for $1.1 billion.
We also raised the quarterly dividend on our common stock to 48 cents per share in the second quarter.
Given our strong capital position, we remain committed to returning additional capital to shareholders,
subject to the regulatory Comprehensive Capital Analysis and Review (CCAR) process.
From the CEO | March 2, 2015
Peers S&P 500 PNC
11%
18%
9%
Stock Price
Performance
in 2014