50
PNC Financial Services Group
Pittsburgh’s PNC Financial Services has prospered as a fast-growing regional bank, with 850 branches across seven states from New Jersey to Kentucky. CEO James Rohr has kept adding to PNC’s basic banking business, snapping up rival Mercantile Bancshares in October. But Rohr has also diversified into wealth management and fund services. As a result, while PNC’s $2.2 billion of net interest income is about where it was in 2002, before the Federal Reserve started hiking rates, income from other sources like management fees has doubled, to $6.3 billion. Its profits also more than doubled, to $2.6 billion. PNC did cut its stake in money manager BlackRock from 69% to 34% as part of a deal to acquire Merrill Lynch’s fund business in September. That move has paid off: PNC recorded a $1.3 billion gain on the deal, and its remaining BlackRock shares doubled in the past year.
| Overall Grade | A- |
|
| Market Data | PNC | |
| Market Value (2/28/2007) |
$21.5 Billion |
|
| Profitability* | 29.6% | A- |
| Sales Growth Rate** | 15.3% | B- |
| 12-Month Sales | $8.9 Billion |
|
| 12-Month Net Income | $2.6 Billion |
|
| Total Return | Past 12 Months7.4% | Past 36 Months38.6% |
| Economic Sector | Financials | |
| Industry | Regional Banks | |
The overall sector letter grade reflects how the weighted average of the return on income, or return on equity, and sales growth grades compare with others in the same sector. For the overall grade as well as the ROE/ROI and sales growth grades, an "A" places a company in the top 7% of its sector and an "A-" in the top 14% of the sector. The actual ranking was done using the underlying numerical measures. Grades are for information only.
* For nonfinancial companies, three-year average pretax operating profit before interest and special items as a percentage of average invested capital. For financial companies, pretax profits as a percentage of average shareholder's equity.
*Three-year average annual sales growth based on the most recently reported 36 months, calculated using the least-squares method.
