Two years after PNC Financial Services Group added 400-plus branches in six Southeastern states with its acquisition of Raleigh-based RBC Bank, a top executive says its business in the region is thriving.
“We’re delighted in terms of the progress that we’re making there,” Robert Reilly, chief financial officer of the Pittsburgh-based bank, said Tuesday during a presentation to bank industry analysts in Boca Raton, Fla.
“While acknowledging we’re working from a small base,” he added, “we saw significant growth in every line of business in 2013 compared to the previous year.”
PNC acquired RBC Bank from its corporate parent, Royal Bank of Canada, in March 2012 for $3.45 billion.
According to a transcript of Reilly’s presentation at the Credit Suisse Financial Services Forum made available by PNC, Reilly said that “it’s important to remember that we bought a retail presence in those markets and had to build a corporate banking and asset management presence essentially from the ground up. Now that we’re fully staffed, we’re seeing strong growth rates even in these highly competitive markets.”
Reilly also told the analysts:• On the consumer side, PNC has boosted its client roster by 36,000 households. Loans expanded by more than $600 million.
“We saw double-digit growth in noninterest income primarily due to increases in brokerage, credit card and debit card revenue,” Reilly said.• PNC has added more than 150 “primary” corporate banking clients in the Southeast and boosted its corporate loans by $500 million.
“Looking at the specific markets, we saw double-digit sales growth on the corporate banking side in Georgia and the Carolinas in 2013,” he said. Sales incorporates both net interest and noninterest income.• In asset management for affluent clients, assets under management rose 25 percent to $3.3 billion in 2013.
Staff writer David Ranii