FI564 Management of Financial Institutions
Professor Tracy Thompson
June 16, 2012
This comprehensive paper will analyze the financial standing of PNC Bank. In the first part o we will look at PNC Bank’s profile, mission statement and future direction. An analysis of PNC’s strengths and weaknesses based on PNC’s financial statements and ratios will be conducted. PNC will also be compared to the industry and to Bank of America. The Federal Reserve interest rates over the past five years will be correlated to PNC’s Net income for the same timeframe. The analysis will conclude with my forecast for PNC’s future profitability. Business Summary
“PNC Financial Services traces its history to the Pittsburgh Trust and Savings Company which was founded in Pittsburgh, Pennsylvania, in 1852.PNC Bank NA. is the principal subsidiary of the PNC Financial Services Group, Inc. Based in Pittsburgh, Pennsylvania, PNC Bank offers consumer and corporate services in over 2,500 branches in Alabama, Delaware, the District of Columbia, Florida, Georgia, Kentucky, Indiana, Illinois, Maryland, Michigan, Missouri, New Jersey, New York, North Carolina, Ohio, Pennsylvania, South Carolina, Virginia, West Virginia, & Wisconsin. PNC owns about 35% of publicly traded fund manager BlackRock, which specializes in fixed-income products. BlackRock merged with Merrill Lynch Investment Managers in October 2006, and is now co-owned between PNC, Bank of America, and Barclays.PNC is currently the seventh largest bank by deposits in the United States, as well as the sixth largest by total assets, fifth in total branches, and is the third largest bank off-premise ATM provider.” The following is the mission and value statement from PNC’s 2011 annual report, “For more than 150 years, PNC has been committed to providing our clients with great service and powerful financial expertise to help them meet their financial goals. We are also proud of our longstanding history of supporting the communities we serve - in education and the arts, and in many other ways. Here are the values developed by our employees that have guided us in the past - and continue to guide us today:
We apply knowledge, experience and innovation to develop and deliver the right solutions to all of our customers - large and small, retail and commercial. These fundamental skills have been critical to our success in the highly competitive financial industry.
Working hand-in-hand with our financial capabilities is our commitment to know our customers and understand their needs, concerns and aspirations. It's this combination of financial skills and customer focus that allows us to make it easier for people to manage everyday banking tasks, as well as to meet their most important financial goals.
Understanding that great banking and customer service require speed and flexibility, we trust the capabilities, character and judgment of our colleagues, and empower them to make decisions and deliver quality and value for our customers
We've been conducting business with the highest ethical standards for more than 150 years because we know that our customers must be able to trust us to "do the right thing" in all situations and circumstances.
We understand the critical value of our differences, and of our individual and collective strengths and skills. We celebrate this diversity and proudly apply these strengths to our business practices and customer service.
In our business, you can't be successful without a commitment to teamwork throughout every level of the organization. We work together to meet our goals and, in the process, to help our customers meet their goals.
Quality of Life
We recognize the importance of a healthy balance between business and personal life. We support a commitment to family and personal life, and support our employees as they...