AmazonScience/document-haystack

12023 ANNUAL REPORT • THE PNC FINANCIAL SERVICES GROUP  |  12In the pages that follow, I’ll provide 3details on our results and highlight 4some of the wins that drove our 5success in 2023. I’ll also share my 6perspectives on a few of the lessons 7learned over the course of the  8year, and how they are helping shape 9the future for PNC and the industry  10at large. 11I’d like to begin by thanking my 1256,000-plus colleagues who put in 13extraordinary efforts during 2023 14to support our customers — and 15each other — through a challenging 16environment. None of our successes 17would be possible without their 18talents and dedication.  19I am also deeply grateful for our 20Board of Directors, whose guidance 21helped us navigate a period of 22We run PNC with a focus on delivering strong, through-the-cycle performance.  23And, in 2023, against the backdrop of widespread industry volatility and challenging 24economic conditions, we performed well. We grew and deepened customer 25relationships, generated record revenue, and achieved positive adjusted operating 26leverage by carefully controlling expenses.  27DEAR 28SHAREHOLDER,29WILLIAM S. DEMCHAK30Chairman and Chief Executive Officer31intense industry disruption —  32punctuated by the failure of several 33U.S. banks — while remaining 34focused on our strategy and purpose. 35As I write this letter, in the first 36quarter of 2024, I have never been 37more excited or more optimistic  38for what lies ahead. PNC has an 39incredible set of opportunities on  40the horizon, and with the strength  41of our coast-to-coast franchise,  42our products and our team, we are 43well-positioned to capitalize on them. 44SCALE MATTERS45Contrary to prevailing narratives at 46the time, the failures of Silicon  47Valley Bank and Signature Bank  48in March and First Republic Bank in 49April were not the result of systemic 50weaknesses in the U.S. banking 51system. The banks failed due to poor 52interest rate risk and balance sheet 53management practices as rates 54climbed rapidly in the aftermath of 55the pandemic. 56While the problems at those banks 57were idiosyncratic in nature — and 58amplified by highly concentrated  59and non-operational deposit bases —  60the failures created a crisis of 61confidence that has dramatically 62altered the competitive dynamics 63across the industry. In the wake of 64those failures, consumers and 65businesses have now begun to 66question the stability and regulatory 67oversight of small- and mid-sized 68banks — and that, in turn, has tilted 69the playing field strongly in favor of 70big banks.