1
Exhibit 99.2
BUSINESS INFORMATION
Return on
Earnings Revenue Assigned Capital Average Assets
Six months ended June 30 - ------------------- ------------------ ------------------ --------------------
Dollars in millions 1999 1998 1999 1998 1999 1998 1999 1998
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PNC Regional Bank $321 $296 $1,152 $1,159 22% 21% $39,441 $38,806
Asset Management
PNC Advisors 75 58 365 228 27 31 3,304 2,654
BlackRock 26 14 180 131 44 37 416 304
PFPC Worldwide 22 18 111 91 42 42 263 214
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Total asset management 123 90 656 450 32 34 3,983 3,172
Wholesale
PNC Institutional Bank 53 53 202 181 16 18 9,622 8,321
PNC Secured Finance 58 44 153 104 21 20 8,086 6,203
PNC Mortgage 24 15 217 159 11 11 7,050 4,166
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Total wholesale 135 112 572 444 16 18 24,758 18,690
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Total businesses 579 498 2,380 2,053 21 21 68,182 60,668
Other 13 52 102 303 7,821 12,223
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Total consolidated - core 592 550 2,482 2,356 21 21 76,003 72,891
Gain on sale of credit card business 125 193
Gain on sale of equity interest in
Electronic Payment Services 63 97
Gain on sale of Concord EFS stock
net of PNC Bank Foundation
contribution 16 41
Valuation adjustments (92) (142)
Costs related to efficiency
initiatives (64)
Total consolidated - reported $640 $550 $2,671 $2,356 23 21 $76,003 $72,891
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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 56% of total business
earnings in the first six months of 1999 compared with 59% in the first six
months of 1998. Earnings increased 8% driven by improved efficiency. Excluding
the impact of branch gains and costs related to consumer delivery initiatives in
1998, earnings increased 12%.
PNC ADVISORS - PNC Advisors offers personalized investment management, high-end
brokerage services, 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 13% of total business earnings in the
first six months of 1999 compared with 12% in the prior-year period. Earnings
increased 29% due to strong revenue growth attributable to new business and
market appreciation.
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 4%
of total business earnings in the first six months of 1999 compared with 3% a
year ago. Earnings nearly doubled in the comparison as a result of new business
and market appreciation.
PFPC WORLDWIDE - PFPC Worldwide provides a wide range of accounting,
administration, transfer agency, custody, securities lending and integrated
banking transaction services to mutual funds, pension and money fund managers,
partnerships, brokerage firms, insurance companies and banks, both domestically
and globally. PFPC Worldwide contributed 4% of total business earnings in the
first six months of 1999 and 1998. Earnings increased 22% as a result of an
increase in assets serviced.
PNC INSTITUTIONAL BANK - PNC Institutional Bank provides credit, treasury
management and capital markets products and services to corporations,
institutions and government agencies. PNC Institutional Bank contributed 9% of
total business earnings in the first six months of 1999 compared with 10% in the
prior-year period. Earnings in the first six months of 1999 included a $16
million provision for credit losses compared with no provision a year ago.
PNC SECURED FINANCE - PNC Secured Finance is engaged in commercial real estate
finance, including loan origination, securitization and servicing; asset-based
financing, including lending, syndications and treasury management services; and
equipment lease financing to a wide range of customers nationally. PNC Secured
Finance contributed 10% of total business earnings in the first six months of
1999 compared with 9% a year ago. Earnings increased 32% driven by revenue
attributable to Midland Loan Services, L.P.
PNC MORTGAGE - PNC Mortgage originates, purchases and services residential
mortgages and related products, and securitizes and sells residential mortgages
as private-label mortgage-backed securities and performs master servicing of
those securities for investors. PNC Mortgage contributed 4% of total business
earnings in the first six months of 1999 compared with 3% in the prior-year
period. Earnings increased 60% driven by revenue growth primarily attributable
to a larger servicing portfolio.
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 and exited businesses, venture capital activities, sales of equity
interests in subsidiaries, eliminations and unassigned items.