PNC Financial Services Group, Inc. engages in the provision of diversified financial services. The company's financial services include: retail and business banking; residential mortgage banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-backed lending; wealth management and asset management. It operates through the following segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group, and BlackRock. The Retail Banking segment provides deposit, lending, brokerage, trust, investment management, and cash management services to consumer and small business customers within its primary geographic markets. The Corporate & Institutional segment provides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government and not-for-profit entities, and selectively to large corporations. The Asset Management Group segment includes personal wealth management for high net worth and ultra high net worth clients and institutional asset management. The BlackRock segment operates as a publicly-traded investment management firm providing a broad range of investment, risk management and technology services to institutional and retail clients worldwide. The company was founded in 1983 and is headquartered in Pittsburgh, PA.
Our business and financial performance are vulnerable to the impact of adverse economic conditions.
Government legislation, regulation and policy frequently impacts the economy in ways that could have an adverse effect on our business and financial performance.
The policies of the Federal Reserve and other governmental agencies have a significant impact on interest rates and overall financial market performance. These in turn drive much of our business and financial performance.
As a regulated financial services firm, we are subject to numerous governmental regulations and comprehensive oversight by a variety of regulatory agencies and enforcement authorities. These regulations and the manner in which they are implemented can have a significant impact on our businesses and operations.
We are subject to regulatory capital and liquidity standards that affect our business, operations and ability to pay dividends, or otherwise return capital, to shareholders. These regulatory capital and liquidity standards are subject to modification. Changes in these requirements could require us to maintain higher levels of capital and liquidity than currently required.
The planned discontinuance of the requirement that banks submit rates for the calculation of LIBOR presents risks to the financial instruments originated or held by PNC that use LIBOR as a reference rate.
We rely on technology to conduct our business and could suffer a material adverse impact from interruptions in the effective operation of those systems and we are vulnerable to the impact of attempts to breach data security involving our or our customers’ information.
New customer privacy initiatives will impose additional operational burdens on PNC, may limit our ability to pursue desirable business initiatives and increase the risks associated with any future use of customer data.
We depend on the effectiveness and integrity of employees, and the systems and controls for which they are responsible, to manage operational risks.
Our business and financial results are subject to risks associated with the creditworthiness of our customers and counterparties.
Our business and financial performance are impacted significantly by market interest rates and movements in those rates.
Our business and financial performance are vulnerable to the impact of changes in the values of financial assets.
Our asset and liability valuations and the determination of the amount of loss allowances and impairments taken on our assets are highly subjective. Inaccurate estimates could materially impact our results of operations or financial position.
There are risks resulting from the extensive use of models in our business.
Our success depends on our ability to attract and retain customers for our products and services, which may be negatively impacted by a lack of consumer and business economic confidence as well as our actions, including our ability to anticipate and satisfy customer demands for products and services.
We rely on third party vendors, service providers and other counterparties to help support many aspects of our business. To this extent, our direct control of activities related to our business is reduced, which could introduce risk.
We operate in a highly competitive environment in terms of the products and services we offer and the geographic markets in which we conduct business. The labor markets where we compete for talented employees are also highly competitive. Competition could adversely impact our customer acquisition, growth and retention, as well as our credit spreads and product pricing, causing us to lose market share and deposits and revenues.
We continually encounter technological change and need to keep pace with this change in order to maintain or enhance the competitiveness of our businesses.
Societal responses to climate change could adversely affect our business and performance, including indirectly through impacts on our customers.
Our business and financial results could be impacted materially by adverse results in legal proceedings.
We have a substantial minority equity interest in BlackRock, a publicly traded company, and its business operations and financial performance can adversely affect PNC and our results.
We grow our business in part by acquiring other financial services businesses from time to time. Sometimes these are businesses with technologies or other assets valuable to us even if they do not themselves provide financial services to customers. These acquisitions present a number of risks and uncertainties related both to the acquisition transactions themselves and to the integration of the acquired businesses into PNC after closing.
Our business and financial performance could be adversely affected, directly or indirectly, by disasters, natural or otherwise, by terrorist activities or by international hostilities.