PNC Bank 2014 Annual Report Download - page 5

Controlling What We Can Control – Executing on
our Strategic Priorities
PNC is positioned to perform well in a rising rate environment, but we recognize that net interest
income will remain under pressure until rates do rise. As a result, in recent years we have
focused on strategic priorities aligned to drive an increase in fee income across our diversifi ed
lines of business. In essence, we are working to control what is in our power to control and to
mitigate the impact of market headwinds.
Our strategic priorities work together to position us to achieve targeted outcomes – expanded
market share, deeper customer relationships, increased fee income and improved operating
effi ciency – that form a solid foundation for long-term value creation. In 2014 we made important
progress against each of our priorities.
Driving Growth in New and Underpenetrated Markets
Capturing More Investable Assets
Three years after our acquisition of RBC Bank
(USA), we are growing in the Southeast across
all of our lines of business faster than in our
legacy markets. Prior to 2012, we had only a small
presence in this region, but today it represents
an increasingly important source of revenue and
opportunity for organic growth of the company.
Brand awareness is up in the Southeast to about
65 percent from 50 percent a year ago. We have
fully built out our teams across the Southeast
markets. And with our start-up costs behind us,
we are competing to develop relationships, win
business and gain share.
It will take time for us to build a leading banking
franchise in these intensely competitive
markets, but we are exceeding our expectations
to this point and are very excited about our
potential in the region. Meanwhile, in addition
to our success in the Southeast, we are making
signifi cant strides in other underpenetrated
markets such as Chicago and St. Louis, as we
deliver value-added solutions to our customers.
We are experiencing signifi cant revenue growth
in these markets, and we continue to strengthen
our brand.
Every customer can use help planning their
fi nancial future. That is as true for the college
student who opens a Virtual Wallet account
through one of our University Banking
branches as it is for baby boomers approaching
retirement or, for that matter, business leaders
thinking about how to better manage their
companies’ pension funds.
PNC has been in the asset management
business for a long time, and we have
established our company as one of the largest
bank asset managers in the United States. In
recent years, we have worked to make investing
and retirement a part of every client
conversation, and our employees –
regardless of the line of business they
primarily serve – have taken up the
charge to help our customers ask and
answer critical questions about these
issues.
Our Asset Management Group grew
client assets under administration in 2014 to
$263 billion as of December 31, up $16 billion
from December 31, 2013, driven by stronger
equity markets, new sales production and
cross-sell referrals from other lines of business.
Assets Under
Administration
at year end
Billions
2013 2014
$263
$247