PNC Bank 2014 Annual Report Download - page 75

Asset Management Group earned $181 million in 2014
compared with $162 million in 2013. Client assets under
administration were $263 billion as of December 31, 2014
compared to $247 billion as of December 31, 2013. Earnings
increased due to higher noninterest income from higher assets,
partially offset by higher noninterest expense from strategic
growth.
The core growth strategies of the business include increasing
sales sourced from other PNC lines of business, maximizing
front line productivity and optimizing market presence
including additions to staff in high opportunity markets.
Wealth Management and Hawthorn have over 100 offices
operating in 7 out of the 10 most affluent states in the U.S.
with a majority co-located with retail banking branches. The
businesses’ strategies primarily focus on growing client assets
under management through expanding relationships directly
and through cross-selling from PNC’s other lines of business.
Institutional Asset Management provides advisory, custody,
and retirement administration services to institutional clients
primarily within our banking footprint. The business also
offers PNC proprietary mutual funds. Institutional Asset
Management is strengthening its partnership with the
Corporate Bank to drive growth and is focused on building
retirement capabilities and expanding product solutions for all
customers.
Client assets under administration of $263 billion increased
$16 billion compared to a year ago. Discretionary client assets
under management were $135 billion at December 31, 2014
increased $8 billion compared with December 31, 2013. The
increase was driven by higher equity markets, new sales, and
positive net flows, after adjustments for cyclical client
activities.
Total revenue for 2014 increased $67 million to $1.1 billion
compared with $1.0 billion for 2013, primarily relating to
noninterest income due to stronger average equity markets and
positive net flows, after adjustments for cyclical client
activities.
Noninterest expense was $821 million in 2014, an increase of
$47 million, or 6%, from the prior year. The increase was
primarily attributable to compensation expense from increases
in headcount and investments in technology. Over the last 12
months, total full-time headcount has increased by
approximately 43 positions, or 1%. Asset Management Group
remains focused on disciplined expense management as it
invests in strategic growth opportunities.
Average deposits for 2014 increased $.7 billion, or 8%, from
the prior year. Average transaction deposits grew 8% to $9.3
billion compared with 2013 and were partially offset by the
run-off of maturing certificates of deposit. Average loan
balances of $7.3 billion increased $.4 billion, or 6%, from the
prior year due to continued growth in the consumer loan
portfolio.
The PNC Financial Services Group, Inc. – Form 10-K 57