PNC Bank 2015 Annual Report Download - page 10

PNC’s Southeast markets are defined as Alabama, Georgia, North Carolina, South Carolina and Florida. Southeast markets revenue was $1.1 billion
in 2015 and represented 11 percent of total market revenue and 7 percent of total revenue. Total market revenue for 2015 was $10.4 billion, calculated
as total revenue of $15.2 billion less non-market revenue of $4.8 billion. Non-market revenue is the portion of total revenue derived from businesses
or activities that are not tied to particular markets (such as asset and liability management and our BlackRock stake) or that are managed financially
on a nationwide basis (most significantly the secured lending businesses in Corporate & Institutional Banking).
For more information regarding certain factors that could cause future results to differ, possibly materially, from historical performance or from
those anticipated in forward-looking statements, see the Cautionary Statement in Item 7 of our 2015 Form 10-K, which accompanies this letter. For
additional information regarding PNC’s Peer Group, see Item 5 of the accompanying 2015 Form 10-K, and for additional information on PNC’s tangible
book value and fee income, see the Statistical Information (Unaudited) section in Item 8 of the accompanying 2015 Form 10-K.
Before I close, I would like to thank three retiring board members — Paul Chellgren, Anthony Massaro and
Thomas Usher — whose contributions to the strategic direction and governance of our company have been
tremendous drivers of our success through the years. Paul, Tony and Tom have been wonderful advisors and
advocates for PNC’s shareholders, and I will miss their counsel. I also would like to welcome former Walgreens
Boots Alliance President and Chief Executive Officer Gregory Wasson, who joined our board in July, as well as
former Sprint Corporation President and Chief Executive Officer Daniel Hesse and CSX Corporation Chairman
and Chief Executive Officer Michael Ward, who joined our board in January of this year.
The year ahead is full of uncertainty. We don’t know exactly what the markets will do in response to China’s
slowing economy or how far oil prices might fall. Nor do we know if or when the Federal Reserve will raise
interest rates again. It is unclear just how disruptive companies reaching into the FinTech space will be. It also
is a presidential election year, which means our industry may find itself once again a favorite target for criticism
by politicians and pundits. Some might look at the landscape and see nothing but trouble. At PNC, we see
tremendous opportunity.
In times such as these, our customers need to know they are backed by a bank with a proven record of
consistent performance … a bank with a culture built on the idea that we must always strive to do what is right
… a bank that prides itself on knowing its customers and supporting its communities … a bank that continues to
work and invest to improve because we believe that just being good is not good enough for the people we serve.
We expect that interest rates will rise in 2016, and we are poised to benefit when they do. I am excited about the
work we are doing to enhance the customer experience and the progress we are making against our strategic
priorities. I am eager to see how our own investments in FinTech evolve into a competitive advantage while
solving real needs for the people we serve. I am proud to lead this organization. And I am more convinced than
ever that we have the right strategy, model, people and culture to capitalize on the opportunities ahead and
overcome the challenges we will face along the way.
Thank you for your continued confidence and investment in PNC.
Sincerely,
William S. Demchak
Chairman, President and Chief Executive Officer
Excitement and Opportunity Amid Uncertainty
and Challenges