The PNC Financial Services Group, Inc. operates as a diversified financial services company in the United States and internationally. The company's Retail Banking segment offers deposit, lending, brokerage, investment management, and cash management services to consumer and small business customers through branch network, ATMs, call centers, online banking, and mobile channels. As of December 31, 2016, this segment operated a network of 2,520 branches and 9,024 ATMs. Its Corporate & Institutional Banking segment provides secured and unsecured loans, letters of credit, equipment leases; and cash and investment management, receivables management, disbursement and funds transfer, information reporting, trade, foreign exchange, derivatives, securities, loan syndications, mergers and acquisitions advisory, and equity capital markets advisory related services for corporations, government, and not-for-profit entities. This segment also offers commercial loan servicing and technology solutions for the commercial real estate finance industry. The company's Asset Management Group segment provides investment and retirement planning, customized investment management, private banking, tailored credit, and trust management and administration solutions; multi-generational family planning products; and mutual funds and institutional asset management services to individuals and their families. Its Residential Mortgage Banking segment offers first lien residential mortgage loans. The company's BlackRock segment provides investment and risk management services to institutional and retail clients. Its Non-Strategic Assets Portfolio segment offers residential mortgage and brokered home equity loans and lines of credit, as well as commercial real estate loans and leases. The company was founded in 1922 and is headquartered in Pittsburgh, Pennsylvania.
Business Analysis of PNC Financial Services Group
The Banking Sector is witnessing a major shakeup, new age business models in the industry are transforming both customers and businesses. Faced with this uncertainity, companies are investing resources to transform their business. An in-depth business analysis is a valuable resource to identify and articulate the need for a business model change. At R&P Research we believe, the starting point for a business analysis is Benchmarking. Business benchmarking can be done at various levels: 1) Industry Benchmarking 2) Peer Benchmarking 3) Disruptors Benchmarking. In this report, we share the snapshot of how PNC Financial Services Group compares against the industry on the major performance indicators. This analysis, along with peer group/disruptors benchmarking and revenue model understanding can help identify growth and cost optimization opportunities to maximize the value delivered by PNC Financial Services Group to its stakeholders. R&P Research Industry Intelligence Platform provides historical data for last 15 years with an easy to use benchmarking interface for an in-depth comparative business analysis.
Here is the performance snapshot of PNC Financial Services Group with an interactive chart.
- Revenue Growth: PNC Financial Services Group reported a revenue growth of -0.4% year-on-year during 2016. Banking Industry grew at 1.5% in the same period
- COGS share of Revenues: PNC Financial Services Group COGS share of Revenues details are not available because either company does not share the data or we do not have it
- R&D share of Revenues: PNC Financial Services Group R&D share of Revenues details are not available because either company does not share the data or we do not have it
- SG&A share of Revenues: As a percentage of revenue, PNC Financial Services Group spent 45.7% of its total revenues on Sales, Marketing, and General Administration (SG&A). Banking industry average SG&A spending in the same period was 53.7%
- Inventory share of Revenues: PNC Financial Services Group Inventory share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Payable share of Revenues: PNC Financial Services Group Accounts Payable share of Revenues details are not available because either company does not share the data or we do not have it
- Accounts Receivable share of Revenues: PNC Financial Services Group Accounts Receivable share of Revenues details are not available because either company does not share the data or we do not have it
- PP&E share of Revenues: PNC Financial Services Group PP&E share of Revenues details are not available because either company does not share the data or we do not have it
- Intangibles share of Revenues: As a percentage of revenue, PNC Financial Services Group invested 71.6% of its total revenues on Intangibles. Banking industry average Intangibles investment in the same period was 60.1%
- Net Margins: PNC Financial Services Group Net Margins in the year 2016 were 25.7%. Banking industry average Net Margins in the same period were 23.5%
Sector and Industry Association of PNC Financial Services Group
For the purpose of performance benchmarking of a company with a sector or industry average, R&P Research associates every company with one sector and one industry. An industry consists of companies with related/similar business models. A sector comprises of a group of related/similar industries. For high-level analysis purposes, related/similar sectors are grouped into sector groups.
PNC Financial Services Group is associated with Financials Sector Group, Banking Sector, and Banking Industry.
Banking sector is comprised of a single industry: Banking. Its definition is as follows:
- Banking industry includes banks providing a broad range of financial services, including retail banking, loans and money transmissions.
Industry Ranking of PNC Financial Services Group
With $15.2 billion revenues, PNC Financial Services Group ranked number 6 of all the companies in the US Banking industry. There were a total of 179 public companies in the US Banking industry that had revenues greater than $50 million during 2016.
The top-10 companies in the US Banking industry by revenues during 2016 were:
- JPMorgan Chase ($95.7 billion)
- Wells Fargo ($84.5 billion)
- Bank of America ($83.7 billion)
- Citigroup ($69.9 billion)
- US Bancorp ($19.8 billion)
- PNC Financial Services Group ($15.2 billion)
- BB&T ($10.2 billion)
- SunTrust Banks ($8.2 billion)
- Fifth Third Bank ($6 billion)
- Regions Financial ($5.3 billion)
Business Model Analysis (BMA) Framework
We use the following framework to assess the business model of a company. Business Model Analysis framework can be used by organizations to articulate growth strategies and identify cost optimization opportunities. Technology and consulting companies can use this framework to identify the value drivers and pain points of their targeted customers. Entrepreneurs can use this framework to understand the language of business and identify promising business opportunities. This framework can be used by any professional aspiring to take up a leadership role to better understand the businesses challenges, articulate growth strategy, and monitor the business improvement requirements for the organization.
- Conduct a holistic benchmarking; to identify and target additional sources of value
- Get in touch with us to learn more about Business Model Analysis Framework
- Get free data, charts, and analysis of PNC Financial Services Groupand its peers on select key performance indicators by clicking the reports provided below