PNC Financial Services group is a bank holding firm incorporated under the laws of Pennsylvania in 1983. The Company has its roots in the merger of Provident National Corporation and Pittsburgh National Corporation.
The Company is one of the leading financial services firms diversified across US in terms of assets, product category and clientele. The Company carries out retail, institutional and corporate banking, and global fund processing and asset management services.
Through the Company has presence in entire US, its primary area of operation include Pennsylvania; Washington DC, Maryland and Virginia; New Jersey; Kentucky; Ohio; and Delaware. As of December 31, 2006, the Company had total assets of $101.8 billion and total deposits of $66.3 billion.
Since its incorporation the Company has grown internally, through acquisitions and by launching non bank subsidiaries in terms of geographical reach, and business and product mix. In October 2006, PNC agreed to acquire Mercantile Bankshares Corporation in cash and stock in a transaction valued approximately $6.0 billion. Mercantile, a $18 billion bank holding firm, provides investment, wealth management and banking services through 240 branches in Maryland, Virginia, Delaware, southeastern Pennsylvania, and the District of Columbia. The Company also completed acquisition of Riggs National Corporation in May 2005.
The Company aims to create value for shareholder by driving revenue growth in all businesses through prudent risk management, expenses control and optimal deployment of capital. PNC focuses on acquiring, expanding and retaining client relationships through convenient and technologically advanced banking solutions.
The Company’s net interest income increased 4.2% to $2,245 million in 2006 from $2,154 million in 2005. The Company’s non interest and other income also increased by a significant 51.6% to $6,327 million in 2006 from $4,173 million in 2005. PNC Financial Services’ net income increased 95.8% to $2,595 million in 2006 from $1,325 million in 2005. The Company’s total assets increased 10.7% to $101.8 billion as of December 31, 2006 compared with $92.0 billion as of December 31, 2005. During the same period, PNC Financial Services’ net loans increased 2.0% to $50.1 billion as of December 31, 2006 compared with $49.1 billion as of December 31, 2005. The Company’s total securities asset increased 12.0% to $23.2 billion as of December 31, 2006 compared with $20.7 billion as of December 31, 2005. The Company’s total deposit grew 10.0% to $66.3 billion as of December 31, 2006 compared with $60.3 billion as of December 31, 2005. The Company’s total equity increased 26.0% to $10.8 billion as of December 31, 2006 from $8.6 billion as of December 31, 2005.
The Company has organized itself into four primary businesses segments: Corporate & Institutional Banking; Retail Banking; BlackRock; and PFPC.
Retail Banking. Retail Banking segment offers lending, deposit, brokerage, investment management, cash management services and trust services to nearly 2.5 million small business and retail customers. The segment serves its clients through network of 850 branches, telephone banking centre situated in Pittsburgh and online banking channel. The segment provides brokerage services through J.J.B. Hilliard, W.L. Lyons, Inc. and PNC Investments, LLC. The segment also acts as a trustee and investment manager for employee benefit programs, and endowment and charitable assets. The segment focuses on increasing its customer base and constantly seeks to generate cross sell opportunities to increase revenue growth.
Corporate & Institutional Banking. The segment offers treasury management, lending, and capital markets services and products to middle market companies, large corporations and government entities. The segment’s loan products include unsecured and secured loans, equipment leases and letters of credit. The segment’s treasury management services include management of investment and cash, disbursement services, receivables management, information reporting and funds transfer services. The segment offers foreign exchange, loan syndications, derivatives and M&A advisory, and securities underwriting under the capital market division.
The segment also offers servicing of commercial loan, technology solutions and property advisory to the real estate industry.
BlackRock. BlackRock, an investment management company, had total assets under management of nearly $1.1 trillion as at December 31, 2006. The Company manages assets of individuals and institutions and offers a range of investment products such as fixed income, equity, alternative investment, mutual fund and cash management products. BlackRock is also engaged in providing risk management, financial advisory services and outsourcing solutions to institutional investors. BlackRoack has an international presence and operates in US, Europe, the Middle East, Australia and Asia.
In September 2006, Merrill Lynch transferred its investment management business to BlackRock in lieu of BlackRock common stock and preferred shares. PNC now owns approximately 44 million common stocks of BlackRock.
PFPC. PFPC provides technology, business and processing solutions to global investment sector. The segment’s services include securities lending, custody, and administration for funds. PFPC also offer investor services such as managed accounts, transfer agency and distribution. The segment serviced total assets of nearly $2.2 trillion as of December 31, 2006.