Overview: PNC (Pittsburgh National Corporation) traces its history back to 1852, and is the result of a number of mergers over many decades. A recent major acquisition for PNC has been National City Corporation of Cleveland. Additionally, PNC has agreed to pay $3.45 billion, reflecting a discount of $112 million, to acquire RBC Bank. The deal is expected to close in the first quarter of 2012, and will expand PNC’s footprint into the southeast.
PNC has these major lines of business:
- Retail Banking
- Trust and Wealth Management
- Retail Brokerage
- Corporate & Institutional Banking
- Global Investment Servicing
- Asset Management (in-house operations plus a 34% stake in BlackRock)
Job Openings: See this list of current job openings.
Size: PNC reported these figures as of July, 2008 (not including the impact of the acquisition of National City):
- Worldwide Employees = 28,000
- Consumer and Small Business Banking Customers = 2.9 million
- Branches = 1,142 in PA, NJ, DE, MD, VA, OH, KY, IN, DC
- ATMs = over 4,000
- PNC Investments Brokerage Offices = 24
- Assets = $146 billion
- Deposits = $85 billion
- Assets Under Management = $63 billion
- Fund Assets Serviced = $2.6 trillion
- Fund Shareholder Accounts = 76 million
Positives: PNC is a retail banking leader in the markets in which it competes. It is the #1 subaccounting provider and the #2 full-service mutual fund transfer agent in the U.S. The acquisition of National City will make PNC the #5 bank in the U.S. by deposits, with $180 billion, and #4 by number of branches.
PNC has weathered the credit crisis in strong financial condition. Net income for the first 9 months of 2008 was $1.13 billion, down only 12.5% from $1.29 billion during the same period in 2007. PNC’s debt is rated A or better by Moody’s, S&P; and Fitch.
Negatives: The regional concentration of PNC’s retail banking business may limit the bank’s growth potential. It now competes with the other leading national banks in these same markets: Citigroup, JP Morgan Chase (plus WaMu), Bank of America, and Wachovia (now part of Wells Fargo). Meanwhile, PNC does not have a retail banking presence in any of these large states served by one or more of these competitors: NY, FL, TX, CA, IL.