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Exhibit 99.2
BUSINESS INFORMATION
Return on
Year ended December 31 - Earnings Revenue Assigned Capital Average Assets *
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Dollars in millions 1999 1998 1999 1998 1999 1998 1999 1998
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PNC Regional Bank $641 $582 $2,307 $2,317 22% 20% $39,513 $38,848
Wholesale
PNC Institutional Bank 127 56 408 351 22 11 8,417 7,564
PNC Secured Finance 114 60 281 178 24 16 6,701 5,477
PNC Mortgage 62 35 421 339 14 10 6,906 5,350
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Total wholesale 303 151 1,110 868 20 12 22,024 18,391
Asset Management
PNC Advisors 147 119 738 489 27 30 3,353 2,731
BlackRock 59 36 381 339 36 41 448 441
PFPC 45 38 257 191 40 41 308 229
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Total asset management 251 193 1,376 1,019 30 34 4,109 3,401
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Total businesses 1,195 926 4,793 4,204 23 19 65,646 60,640
Other 4 189 208 697 9,174 13,986
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Total consolidated - core 1,199 1,115 5,001 4,901 21 21 74,820 74,626
Gain on sale of credit card business 125 193
Gain on sale of equity interest in
Electronic Payment Services 63 97
BlackRock IPO gain 59 64
Branch gains 17 27
Gain on sale of Concord stock,
net of PNC Bank Foundation
contribution 16 41
Wholesale lending repositioning (126) (195)
Costs related to efficiency
initiatives (64)
Write-down of an equity investment (18) (28)
Mall ATM buyout (7)
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Total consolidated - reported $1,264 $1,115 $5,200 $4,901 22 21 $74,820 $74,626
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* BlackRock's assets are presented as of period end.
PNC REGIONAL BANK - PNC Regional Bank provides credit, deposit, branch-based
brokerage and electronic banking products and services to retail customers as
well as credit, leasing, treasury management and capital markets products and
services to mid-sized and small businesses primarily within PNC Bank's
geographic footprint. PNC Regional Bank contributed 54% of total business
earnings in 1999 compared with 63% in 1998. Earnings increased 10% in the
comparison driven by improved efficiency and growth in deposits. Excluding the
impact of branch gains and costs related to consumer delivery initiatives in
1998, earnings increased 16%.
PNC INSTITUTIONAL BANK - PNC Institutional Bank provides specialized credit,
capital markets and treasury management products and services to corporations,
institutions and government entities primarily within PNC's geographic
footprint. PNC Institutional Bank contributed 11% of total business earnings in
1999 compared with 6% in 1998. Earnings more than doubled in the comparison due
to higher revenue and a lower provision for credit losses.
PNC SECURED FINANCE - PNC Secured Finance is engaged in commercial real estate
finance, including loan origination, securitization and servicing; asset-based
financing, including lending, syndication and treasury management services; and
equipment lease financing to corporate clients nationwide. PNC Secured Finance
contributed 9% of total business earnings in 1999 compared with 6% in 1998.
Earnings nearly doubled in the comparison due to an increase in net commercial
mortgage banking revenue.
PNC MORTGAGE - PNC Mortgage originates, purchases and services residential
mortgages and related products. PNC Mortgage also acquires and securitizes
residential mortgages as private-label mortgage-backed securities and performs
the master servicing of those securities for investors. PNC Mortgage contributed
5% of total business earnings in 1999 compared with 4% in 1998. Earnings nearly
doubled in the comparison driven by revenue growth primarily attributable to a
larger servicing portfolio.
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PNC ADVISORS - PNC Advisors offers personalized investment management, high-end
brokerage, personal trust, estate planning and traditional banking services to
affluent and wealthy individuals; and investment management, trust and
administrative services to pensions, 401(k) plans and charitable organizations.
PNC Advisors contributed 12% of total business earnings in 1999 compared with
13% in 1998. Earnings increased 24% in the comparison due to strong revenue
growth attributable to new business.
BLACKROCK - BlackRock offers fixed income, domestic and international equity and
liquidity investment products, and utilizes technology-based risk management
capabilities to provide investment advisory and asset management capabilities
for a wide range of institutional and retail customers. BlackRock contributed 5%
of total business earnings in 1999 compared with 4% in 1998. Earnings increased
67% in the comparison as a result of significant new business. To provide a
public currency for continued growth, BlackRock completed an initial public
offering in October 1999 representing approximately a 15% equity interest. The
financial information presented for this business reflects the BlackRock legal
entity. The related minority interest is included in Other.
PFPC - PFPC provides technology-driven products for the investment management
community including fund accounting, administration, distribution, transfer
agency, shareholder services, custody, retirement plan services, integrated
banking transaction services, hedge products accounting, securities lending and
subaccounting services. PFPC clients include pension and investment managers,
brokerage firms, insurance companies and banks. PFPC contributed 4% of total
business earnings in 1999 and 1998. Earnings increased 18% in the comparison as
a result of an increase in assets and accounts serviced. PFPC completed the
acquisition of First Data Investor Services Group ("ISG") on December 1, 1999.
Results for 1999 include one month of activity for ISG.
OTHER - Other reflects differences between total business results and
consolidated core financial results primarily due to differences between
management accounting practices and generally accepted accounting principles,
divested businesses, equity management activities, minority interests,
eliminations and unassigned items. During 1999 there was a repositioning of the
corporate, commercial real estate and mortgage warehouse lending portfolios. The
results of exited activities related to this strategic initiative are included
in Other for all periods presented.