Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2017

(Unaudited)

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THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2017

(UNAUDITED)

Consolidated Results:	Page
Income Statement	1
Balance Sheet	2
Average Balance Sheet	3
Details of Net Interest Margin	4
Per Share Related Information	5
Loans	5
Allowance for Loan and Lease Losses	6
Nonperforming Assets	7-8
Accruing Loans Past Due	9
Business Segment Results:
Descriptions	10
Period End Employees	10
Income and Revenue	11
Retail Banking	12-13
Corporate & Institutional Banking	14
Asset Management Group	15
Glossary of Terms	16-18

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 12, 2018. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

BUSINESS

PNC is one of the largest diversified financial services companies in the United States and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, including residential mortgage, corporate and institutional banking and asset management, providing many of its products and services nationally, as well as other products and services in PNC's primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Georgia, Alabama, Missouri, Wisconsin and South Carolina. PNC also provides certain products and services internationally.

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THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Fourth Quarter 2017 Financial Supplement (Unaudited)
Financial Supplement Table Reference
Table	Description	Page
1	Consolidated Income Statement	1
2	Consolidated Balance Sheet	2
3	Average Consolidated Balance Sheet	3
4	Details of Net Interest Margin	4
5	Per Share Related Information	5
6	Details of Loans	5
7	Change in Allowance for Loan and Lease Losses	6
8	Nonperforming Assets by Type	7
9	Change in Nonperforming Assets	8
10	Largest Individual Nonperforming Assets at September 30, 2017	8
11	Accruing Loans Past Due 30 to 59 Days	9
12	Accruing Loans Past Due 60 to 89 Days	9
13	Accruing Loans Past Due 90 Days or More	9
14	Period End Employees	10
15	Summary of Business Segment Income and Revenue	11
16	Retail Banking	12-13
17	Corporate & Institutional Banking	14
18	Asset Management Group	15

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Table 1: Consolidated Income Statement (Unaudited)

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
In millions, except per share data	2017				2017				2017				2017				2016					2017				2016
Interest Income
Loans	$	2,154			$	2,140			$	2,040			$	1,904			$	1,886				$	8,238			$	7,414
Investment securities	509				501				495				493				457					1,998				1,826
Other	162				154				139				123				110					578				412
Total interest income	2,825				2,795				2,674				2,520				2,453					10,814				9,652
Interest Expense
Deposits	190				170				143				120				114					623				430
Borrowed funds	290				280				273				240				209					1,083				831
Total interest expense	480				450				416				360				323					1,706				1,261
Net interest income	2,345				2,345				2,258				2,160				2,130					9,108				8,391
Noninterest Income
Asset management	720				421				398				403				399					1,942				1,521
Consumer services	366				357				360				332				349					1,415				1,388
Corporate services	423				371				434				393				387					1,621				1,504
Residential mortgage	29				104				104				113				142					350				567
Service charges on deposits	183				181				170				161				172					695				667
Other (a)	194				346				336				322				295					1,198				1,124
Total noninterest income	1,915				1,780				1,802				1,724				1,744					7,221				6,771
Total revenue	4,260				4,125				4,060				3,884				3,874					16,329				15,162
Provision For Credit Losses	125				130				98				88				67					441				433
Noninterest Expense
Personnel	1,438				1,274				1,263				1,249				1,231					5,224				4,841
Occupancy	240				204				202				222				210					868				861
Equipment	274				259				281				251				254					1,065				974
Marketing	60				62				67				55				60					244				247
Other	1,049				657				666				625				686					2,997				2,553
Total noninterest expense	3,061				2,456				2,479				2,402				2,441					10,398				9,476
Income before income taxes (benefit) and noncontrolling interests	1,074				1,539				1,483				1,394				1,366					5,490				5,253
Income taxes (benefit)	(1,017		)		413				386				320				319					102				1,268
Net income	2,091				1,126				1,097				1,074				1,047					5,388				3,985
Less: Net income attributable to noncontrolling interests	11				12				10				17				22					50				82
Preferred stock dividends (b)	55				63				55				63				42					236				209
Preferred stock discount accretion and redemptions	2				1				2				21				1					26				6
Net income attributable to common shareholders	$	2,023			$	1,050			$	1,030			$	973			$	982				$	5,076			$	3,688
Earnings Per Common Share
Basic	$	4.23			$	2.18			$	2.12			$	1.99			$	2.01				$	10.49			$	7.42
Diluted	$	4.18			$	2.16			$	2.10			$	1.96			$	1.97				$	10.36			$	7.30
Average Common Shares Outstanding
Basic	476				479				484				487				487					481				494
Diluted	480				483				488				492				494					486				500
Efficiency	72		%		60		%		61		%		62		%		63		%			64		%		62		%
Noninterest income to total revenue	45		%		43		%		44		%		44		%		45		%			44		%		45		%
Effective tax rate (c)	(94.7		)%		26.8		%		26.0		%		23.0		%		23.4		%			1.9		%		24.1		%

(a)	Includes net gains (losses) on sales of securities of $(3) million, $(1) million, $13 million, $(2) million, and $(4) million for the quarters ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively, and $7 million and $16 million for the years ended December 31, 2017 and December 31, 2016, respectively.

(b)	Dividends are payable quarterly other than Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

(c)

The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax. The fourth quarter and full year 2017 results benefited from the new federal tax legislation. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. As a result, the amounts could be adjusted during the measurement period, which will end in December 2018.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

	December 31				September 30				June 30				March 31				December 31
In millions, except par value	2017				2017				2017				2017				2016
Assets
Cash and due from banks	$	5,249			$	4,736			$	5,039			$	5,003			$	4,879
Interest-earning deposits with banks (a)	28,595				24,713				22,482				27,877				25,711
Loans held for sale (b)	2,655				1,764				2,030				1,414				2,504
Investment securities – available for sale	57,618				57,254				58,878				59,339				60,104
Investment securities – held to maturity	18,513				17,740				17,553				17,093				15,843
Loans (b)	220,458				221,109				218,034				212,826				210,833
Allowance for loan and lease losses	(2,611		)		(2,605		)		(2,561		)		(2,561		)		(2,589		)
Net loans	217,847				218,504				215,473				210,265				208,244
Equity investments (c)	11,392				11,009				10,819				10,900				10,728
Mortgage servicing rights	1,832				1,854				1,867				1,867				1,758
Goodwill	9,173				9,163				9,163				9,103				9,103
Other (b)	27,894				28,454				28,886				28,083				27,506
Total assets	$	380,768			$	375,191			$	372,190			$	370,944			$	366,380
Liabilities
Deposits
Noninterest-bearing	$	79,864			$	79,967			$	79,550			$	79,246			$	80,230
Interest-bearing	185,189				180,768				179,626				181,464				176,934
Total deposits	265,053				260,735				259,176				260,710				257,164
Borrowed funds
Federal Home Loan Bank borrowings	21,037				20,538				19,039				19,549				17,549
Bank notes and senior debt	28,062				26,467				26,054				23,745				22,972
Subordinated debt	5,200				5,601				6,111				6,889				8,009
Other (b)	4,789				4,958				5,202				4,879				4,176
Total borrowed funds	59,088				57,564				56,406				55,062				52,706
Allowance for unfunded loan commitments and letters of credit	297				293				304				305				301
Accrued expenses and other liabilities	8,745				10,147				10,119				8,964				9,355
Total liabilities	333,183				328,739				326,005				325,041				319,526
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares	2,710				2,710				2,710				2,709				2,709
Capital surplus	16,374				16,343				16,326				16,275				16,651
Retained earnings	35,481				33,819				33,133				32,372				31,670
Accumulated other comprehensive income (loss)	(148		)		(22		)		(98		)		(279		)		(265		)
Common stock held in treasury at cost: 69, 66, 62, 57 and 57 shares	(6,904		)		(6,462		)		(5,987		)		(5,323		)		(5,066		)
Total shareholders’ equity	47,513				46,388				46,084				45,754				45,699
Noncontrolling interests	72				64				101				149				1,155
Total equity	47,585				46,452				46,185				45,903				46,854
Total liabilities and equity	$	380,768			$	375,191			$	372,190			$	370,944			$	366,380

 

(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $28.3 billion, $24.3 billion, $22.1 billion, $27.5 billion and $25.1 billion as of December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our third quarter 2017 Form 10-Q included, and our 2017 Form 10-K will include, additional information regarding these items.

(c)	Amounts include our equity interest in BlackRock.

(d)	Par value less than $.5 million at each date.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Table 3: Average Consolidated Balance Sheet (Unaudited) (a)
	Three months ended																					Twelve months ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
In millions	2017				2017				2017				2017				2016					2017				2016
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	25,338			$	25,493			$	25,862			$	26,385			$	26,374				$	25,766			$	25,442
Non-agency	2,577				2,758				2,947				3,127				3,303					2,851				3,613
Commercial mortgage-backed	4,542				4,838				5,493				5,919				6,283					5,193				6,369
Asset-backed	5,330				5,546				5,863				5,992				5,977					5,681				5,741
U.S. Treasury and government agencies	13,646				13,081				12,881				13,101				12,805					13,178				10,590
Other	4,940				5,011				5,093				5,293				5,237					5,083				5,064
Total securities available for sale	56,373				56,727				58,139				59,817				59,979					57,752				56,819
Securities held to maturity
Residential mortgage-backed	13,976				13,549				12,790				11,852				11,465					13,049				10,529
Commercial mortgage-backed	963				1,211				1,393				1,458				1,532					1,255				1,693
Asset-backed	220				358				490				556				585					405				677
U.S. Treasury and government agencies	739				561				533				529				444					591				308
Other	1,974				2,000				2,007				2,041				2,030					2,005				2,020
Total securities held to maturity	17,872				17,679				17,213				16,436				16,056					17,305				15,227
Total investment securities	74,245				74,406				75,352				76,253				76,035					75,057				72,046
Loans
Commercial	111,365				109,503				106,944				103,084				101,880					107,752				100,319
Commercial real estate	29,432				29,676				29,655				29,178				29,247					29,487				28,729
Equipment lease financing	7,670				7,704				7,602				7,497				7,398					7,618				7,463
Consumer	55,814				56,062				56,342				56,843				57,164					56,262				57,499
Residential real estate	16,840				16,273				15,830				15,651				15,193					16,152				14,807
Total loans	221,121				219,218				216,373				212,253				210,882					217,271				208,817
Interest-earning deposits with banks (b)	25,567				23,859				22,543				24,192				25,245					24,043				26,328
Other interest-earning assets	8,759				9,024				9,748				8,395				7,983					8,983				7,843
Total interest-earning assets	329,692				326,507				324,016				321,093				320,145					325,354				315,034
Noninterest-earning assets	47,136				46,890				46,286				45,323				46,041					46,415				46,226
Total assets	$	376,828			$	373,397			$	370,302			$	366,416			$	366,186				$	371,769			$	361,260
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	60,954			$	62,325			$	62,157			$	63,921			$	67,271				$	62,331			$	71,530
Demand	57,128				56,743				57,513				56,797				55,223					57,045				52,701
Savings	45,817				43,869				42,128				39,095				35,224					42,749				29,643
Time deposits	17,438				17,571				17,214				17,058				18,409					17,322				18,890
Total interest-bearing deposits	181,337				180,508				179,012				176,871				176,127					179,447				172,764
Borrowed funds
Federal Home Loan Bank borrowings	19,565				19,190				20,405				20,416				17,465					19,890				18,385
Bank notes and senior debt	27,778				26,602				24,817				22,992				21,653					25,564				21,906
Subordinated debt	5,433				5,970				6,607				7,102				8,287					6,273				8,324
Other	5,261				5,254				5,695				4,432				4,127					5,162				4,324
Total borrowed funds	58,037				57,016				57,524				54,942				51,532					56,889				52,939
Total interest-bearing liabilities	239,374				237,524				236,536				231,813				227,659					236,336				225,703
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	80,152				78,931				77,375				78,050				80,925					78,634				78,085
Accrued expenses and other liabilities	10,801				10,749				10,432				10,081				10,828					10,518				11,083
Equity	46,501				46,193				45,959				46,472				46,774					46,281				46,389
Total liabilities and equity	$	376,828			$	373,397			$	370,302			$	366,416			$	366,186				$	371,769			$	361,260

(a)	Calculated using average daily balances.

(b)

Amounts include balances held with the Federal Reserve Bank of Cleveland of $25.3 billion, $23.4 billion, $22.1 billion, $23.7 billion and $24.7 billion for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively, and $23.6 billion and $25.8 billion for the twelve months ended December 31, 2017 and December 31, 2016, respectively.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Table 4: Details of Net Interest Margin (Unaudited) (a)
	Three months ended																Twelve months ended
	December 31			September 30			June 30			March 31			December 31				December 31			December 31
	2017			2017			2017			2017			2016				2017			2016
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.58	%		2.61	%		2.51	%		2.57	%		2.30	%			2.57	%		2.43	%
Non-agency	4.29	%		5.91	%		5.58	%		5.59	%		5.18	%			5.37	%		4.84	%
Commercial mortgage-backed	4.68	%		2.71	%		2.56	%		2.35	%		2.25	%			3.00	%		2.62	%
Asset-backed	2.82	%		2.53	%		2.48	%		2.50	%		2.39	%			2.59	%		2.30	%
U.S. Treasury and government agencies	1.79	%		1.83	%		1.78	%		1.66	%		1.41	%			1.78	%		1.46	%
Other	3.32	%		3.08	%		3.08	%		2.93	%		2.97	%			3.11	%		3.00	%
Total securities available for sale	2.73	%		2.63	%		2.56	%		2.53	%		2.33	%			2.62	%		2.46	%
Securities held to maturity
Residential mortgage-backed	2.74	%		2.81	%		2.82	%		2.79	%		2.52	%			2.79	%		2.75	%
Commercial mortgage-backed	4.11	%		4.42	%		4.30	%		3.50	%		4.12	%			4.06	%		3.66	%
Asset-backed	2.66	%		2.53	%		2.35	%		2.21	%		2.29	%			2.47	%		2.07	%
U.S. Treasury and government agencies	2.85	%		3.07	%		3.10	%		3.07	%		3.25	%			3.05	%		3.57	%
Other	5.28	%		5.30	%		5.28	%		5.34	%		5.35	%			5.24	%		5.64	%
Total securities held to maturity	3.10	%		3.20	%		3.22	%		3.16	%		3.04	%			3.17	%		3.22	%
Total investment securities	2.82	%		2.77	%		2.71	%		2.67	%		2.48	%			2.74	%		2.62	%
Loans
Commercial	3.59	%		3.54	%		3.45	%		3.24	%		3.11	%			3.51	%		3.13	%
Commercial real estate	3.68	%		3.65	%		3.48	%		3.27	%		3.30	%			3.57	%		3.36	%
Equipment lease financing	2.33	%		3.71	%		3.65	%		3.34	%		3.33	%			3.26	%		3.56	%
Consumer	4.72	%		4.67	%		4.52	%		4.47	%		4.35	%			4.59	%		4.31	%
Residential real estate	4.41	%		4.45	%		4.55	%		4.55	%		4.64	%			4.49	%		4.70	%
Total loans	3.91	%		3.92	%		3.82	%		3.67	%		3.59	%			3.86	%		3.61	%
Interest-earning deposits with banks	1.33	%		1.26	%		1.04	%		.81	%		.56	%			1.11	%		.52	%
Other interest-earning assets	3.55	%		3.47	%		3.38	%		3.54	%		3.80	%			3.48	%		3.56	%
Total yield on interest-earning assets	3.45	%		3.45	%		3.35	%		3.22	%		3.09	%			3.39	%		3.13	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	.45	%		.41	%		.30	%		.23	%		.21	%			.35	%		.20	%
Demand	.17	%		.14	%		.12	%		.10	%		.08	%			.13	%		.08	%
Savings	.51	%		.45	%		.45	%		.42	%		.42	%			.46	%		.40	%
Time deposits	.85	%		.79	%		.73	%		.69	%		.66	%			.77	%		.66	%
Total interest-bearing deposits	.42	%		.37	%		.32	%		.28	%		.26	%			.35	%		.25	%
Borrowed funds
Federal Home Loan Bank borrowings	1.48	%		1.37	%		1.23	%		1.09	%		1.01	%			1.31	%		.84	%
Bank notes and senior debt	2.04	%		2.05	%		2.00	%		1.85	%		1.55	%			2.02	%		1.61	%
Subordinated debt	3.49	%		3.48	%		3.66	%		3.49	%		3.05	%			3.54	%		3.17	%
Other	1.74	%		1.60	%		1.67	%		1.36	%		1.41	%			1.61	%		1.39	%
Total borrowed funds	1.96	%		1.93	%		1.89	%		1.74	%		1.60	%			1.90	%		1.57	%
Total rate on interest-bearing liabilities	.79	%		.75	%		.70	%		.62	%		.56	%			.72	%		.56	%
Interest rate spread	2.66	%		2.70	%		2.65	%		2.60	%		2.53	%			2.67	%		2.57	%
Impact of noninterest-bearing sources (b)	.22			.21			.19			.17			.16				.20			.16
Net interest margin	2.88	%		2.91	%		2.84	%		2.77	%		2.69	%			2.87	%		2.73	%

(a)

Calculated as annualized taxable-equivalent net interest income divided by average earning assets. To provide more meaningful comparisons of net interest yields for all earning assets, interest income includes the effects of taxable-equivalent adjustments using a statutory federal income tax rate of 35% to increase tax-exempt interest income to a taxable-equivalent basis. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, were $54 million, $55 million, $54 million, $52 million and $50 million, respectively. The taxable-equivalent adjustments to net interest income for the twelve months ended December 31, 2017 and December 31, 2016 were $215 million and $195 million, respectively.

(b)	Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Table 5: Per Share Related Information (Unaudited)
	Three months ended																					Twelve months ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
In millions, except per share data	2017				2017				2017				2017				2016					2017				2016
Basic
Net income	$	2,091			$	1,126			$	1,097			$	1,074			$	1,047				$	5,388			$	3,985
Less:
Net income (loss) attributable to noncontrolling      interests	11				12				10				17				22					50				82
Preferred stock dividends (a)	55				63				55				63				42					236				209
Preferred stock discount accretion and redemptions	2				1				2				21				1					26				6
Net income attributable to common shareholders	2,023				1,050				1,030				973				982					5,076				3,688
Less:
Dividends and undistributed earnings allocated to     nonvested restricted shares	8				5				4				6				7					23				26
Net income attributable to basic common shares	$	2,015			$	1,045			$	1,026			$	967			$	975				$	5,053			$	3,662
Basic weighted-average common shares outstanding	476				479				484				487				487					481				494
Basic earnings per common share	$	4.23			$	2.18			$	2.12			$	1.99			$	2.01				$	10.49			$	7.42
Diluted
Net income attributable to basic common shares	$	2,015			$	1,045			$	1,026			$	967			$	975				$	5,053			$	3,662
Less: Impact of BlackRock earnings per share dilution	8				3				1				4				2					16				12
Net income attributable to diluted common shares	$	2,007			$	1,042			$	1,025			$	963			$	973				$	5,037			$	3,650
Basic weighted-average common shares outstanding	476				479				484				487				487					481				494
Dilutive potential common shares	4				4				4				5				7					5				6
Diluted weighted-average common shares outstanding	480				483				488				492				494					486				500
Diluted earnings per common share	$	4.18			$	2.16			$	2.10			$	1.96			$	1.97				$	10.36			$	7.30

(a)	Dividends are payable quarterly other than the Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

Table 6: Details of Loans (Unaudited)

		December 31				September 30				June 30				March 31				December 31
In millions		2017				2017				2017				2017				2016
Commercial lending
Commercial
Manufacturing		$	20,578			$	20,658			$	20,533			$	20,054			$	18,891
Retail/wholesale trade		17,846				18,256				18,101				17,446				16,752
Service providers		15,100				15,014				15,111				14,185				14,707
Real estate related (a)		12,496				12,174				12,179				11,690				11,920
Health care		9,739				9,659				9,541				9,603				9,491
Financial services		8,532				10,968				8,493				7,710				7,241
Transportation and warehousing		5,609				5,597				5,589				5,260				5,170
Other industries		20,627				18,991				19,010				17,817				17,192
Total commercial		110,527				111,317				108,557				103,765				101,364
Commercial real estate		28,978				29,516				29,489				29,435				29,010
Equipment lease financing		7,934				7,694				7,719				7,462				7,581
Total commercial lending		147,439				148,527				145,765				140,662				137,955
Consumer lending
Home equity		28,364				28,811				29,219				29,577				29,949
Residential real estate		17,212				16,601				16,049				15,781				15,598
Credit card		5,699				5,375				5,211				5,112				5,282
Other consumer
Automobile		12,880				12,743				12,488				12,337				12,380
Education		4,454				4,620				4,751				4,974				5,159
Other		4,410				4,432				4,551				4,383				4,510
Total consumer lending		73,019				72,582				72,269				72,164				72,878
Total loans		$	220,458			$	221,109			$	218,034			$	212,826			$	210,833

(a) Includes loans to customers in the real estate and construction industries.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Allowance for Loan and Lease Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses

		December 31				September 30				June 30				March 31				December 31
Three months ended - in millions		2017				2017				2017				2017				2016
Beginning balance		$	2,605			$	2,561			$	2,561			$	2,589			$	2,619
Gross charge-offs:
Commercial		(46		)		(39		)		(48		)		(53		)		(61		)
Commercial real estate		(15		)		(6		)		(2		)		(1		)		(4		)
Equipment lease financing		(5		)		(4		)		(1		)		(1		)		(1		)
Home equity		(25		)		(26		)		(38		)		(34		)		(28		)
Residential real estate		(1		)		(4		)						(4		)		(3		)
Credit card		(46		)		(44		)		(46		)		(46		)		(39		)
Other consumer		(71		)		(62		)		(59		)		(59		)		(58		)
Total gross charge-offs		(209		)		(185		)		(194		)		(198		)		(194		)
Recoveries:
Commercial		20				17				20				24				30
Commercial real estate		7				6				8				7				14
Equipment lease financing		3				2				1				1				1
Home equity		24				24				23				20				21
Residential real estate		6				4				4				4				2
Credit card		5				5				6				5				5
Other consumer		21				21				22				19				15
Total recoveries		86				79				84				80				88
Net (charge-offs) / recoveries:
Commercial		(26		)		(22		)		(28		)		(29		)		(31		)
Commercial real estate		(8		)						6				6				10
Equipment lease financing		(2		)		(2		)
Home equity		(1		)		(2		)		(15		)		(14		)		(7		)
Residential real estate		5								4								(1		)
Credit card		(41		)		(39		)		(40		)		(41		)		(34		)
Other consumer		(50		)		(41		)		(37		)		(40		)		(43		)
Total net charge-offs		(123		)		(106		)		(110		)		(118		)		(106		)
Provision for credit losses		125				130				98				88				67
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit		(4		)		11				1				(4		)		9
Other		8				9				11				6
Ending balance		$	2,611			$	2,605			$	2,561			$	2,561			$	2,589
Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		.22		%		.19		%		.20		%		.23		%		.20		%
Allowance for loan and lease losses to total loans		1.18		%		1.18		%		1.17		%		1.20		%		1.23		%
Commercial lending net charge-offs		$	(36	)		$	(24	)		$	(22	)		$	(23	)		$	(21	)
Consumer lending net charge-offs		(87		)		(82		)		(88		)		(95		)		(85		)
Total net charge-offs		$	(123	)		$	(106	)		$	(110	)		$	(118	)		$	(106	)
Net charge-offs to average loans
Commercial lending		.10		%		.06		%		.06		%		.07		%		.06		%
Consumer lending		.48		%		.45		%		.49		%		.53		%		.47		%

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type

		December 31				September 30				June 30				March 31				December 31
In millions		2017				2017				2017				2017				2016
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade		$	115			$	76			$	86			$	106			$	87
Manufacturing		55				63				65				41				31
Service providers		35				48				52				44				40
Real estate related (a)		33				37				26				28				47
Financial services																		1
Health care		15				23				33				23				30
Transportation and warehousing		27				15				16				3				20
Other industries		149				157				190				155				240
Total commercial		429				419				468				400				496
Commercial real estate		123				128				127				137				143
Equipment lease financing		2				3				4				12				16
Total commercial lending		554				550				599				549				655
Consumer lending (b)
Home equity		818				814				837				900				914
Residential real estate		400				423				439				473				501
Credit card		6				5				5				4				4
Other consumer
Automobile		76				71				66				61				55
Education and other		11				10				11				11				15
Total consumer lending		1,311				1,323				1,358				1,449				1,489
Total nonperforming loans (c)		1,865				1,873				1,957				1,998				2,144
OREO, foreclosed and other assets		170				194				196				214				230
Total nonperforming assets		$	2,035			$	2,067			$	2,153			$	2,212			$	2,374
Nonperforming loans to total loans		.85		%		.85		%		.90		%		.94		%		1.02		%
Nonperforming assets to total loans, OREO, foreclosed and other assets		.92		%		.93		%		.99		%		1.04		%		1.12		%
Nonperforming assets to total assets		.53		%		.55		%		.58		%		.60		%		.65		%
Allowance for loan and lease losses to nonperforming loans		140		%		139		%		131		%		128		%		121		%

(a)	Includes loans related to customers in the real estate and construction industries.

(b)	Excludes most consumer loans and lines of credit, not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.

(c)	Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under the fair value option and purchased impaired loans.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Nonperforming Assets (Unaudited) (Continued)

Table 9: Change in Nonperforming Assets

		October 1, 2017 -				July 1, 2017 -				April 1, 2017 -				January 1, 2017 -				October 1, 2016 -
In millions		December 31, 2017				September 30, 2017				June 30, 2017				March 31, 2017				December 31, 2016
Beginning balance		$	2,067			$	2,153			$	2,212			$	2,374			$	2,375
New nonperforming assets		307				303				436				330				518
Charge-offs and valuation adjustments		(141		)		(142		)		(152		)		(150		)		(132		)
Principal activity, including paydowns and payoffs		(87		)		(162		)		(161		)		(228		)		(279		)
Asset sales and transfers to loans held for sale		(40		)		(38		)		(58		)		(42		)		(57		)
Returned to performing status		(71		)		(47		)		(124		)		(72		)		(51		)
Ending balance		$	2,035			$	2,067			$	2,153			$	2,212			$	2,374

Table 10: Largest Individual Nonperforming Assets at December 31, 2017 (a)

In millions
Ranking		Outstandings		Industry
1		$44		Wholesale Trade
2		40		Information
3		31		Wholesale Trade
4		28		Mining, Quarrying, Oil and Gas Extraction
5		25		Mining, Quarrying, Oil and Gas Extraction
6		20		Manufacturing
7		14		Manufacturing
8		14		Construction
9		14		Transportation and Warehousing
10		13		Real Estate, Rental and Leasing
Total		$243
As a percent of total nonperforming assets				12%

 

(a) Amounts shown are not net of related allowance for loan and lease losses, if applicable.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

Accruing Loans Past Due (Unaudited)

Table 11: Accruing Loans Past Due 30 to 59 Days (a)

		Amount																				Percent of Total Outstandings
		Dec. 31				Sept. 30				Jun. 30				Mar. 31				Dec. 31				Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions		2017				2017				2017				2017				2016				2017			2017			2017			2017			2016
Commercial		$	45			$	44			$	42			$	62			$	81			.04	%		.04	%		.04	%		.06	%		.08	%
Commercial real estate		27				8				4				15				5				.09	%		.03	%		.01	%		.05	%		.02	%
Equipment lease financing		17				4				2				19				29				.21	%		.05	%		.03	%		.25	%		.38	%
Home equity		78				74				61				57				64				.27	%		.26	%		.21	%		.19	%		.21	%
Residential real estate
Non government insured		90				75				78				62				103				.52	%		.45	%		.49	%		.39	%		.66	%
Government insured		61				60				51				60				56				.35	%		.36	%		.32	%		.38	%		.36	%
Credit card		43				40				34				32				33				.75	%		.74	%		.65	%		.63	%		.62	%
Other consumer
Automobile		79				71				44				35				51				.61	%		.56	%		.35	%		.28	%		.41	%
Education and other
Non government insured		25				30				24				22				37				.28	%		.33	%		.26	%		.24	%		.38	%
Government insured		80				80				93				94				103				.90	%		.88	%		1.00	%		1.00	%		1.07	%
Total		$	545			$	486			$	433			$	458			$	562			.25	%		.22	%		.20	%		.22	%		.27	%

Table 12: Accruing Loans Past Due 60 to 89 Days (a)

		Amount																				Percent of Total Outstandings
		Dec. 31				Sept. 30				Jun. 30				Mar. 31				Dec. 31				Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions		2017				2017				2017				2017				2016				2017			2017			2017			2017			2016
Commercial		$	25			$	28			$	26			$	29			$	20			.02	%		.03	%		.02	%		.03	%		.02	%
Commercial real estate		2				13				1				6				2				.01	%		.04	%		.00	%		.02	%		.01	%
Equipment lease financing		1				3				4								1				.01	%		.04	%		.05	%					.01	%
Home equity		26				31				24				23				30				.09	%		.11	%		.08	%		.08	%		.10	%
Residential real estate
Non government insured		21				17				14				23				18				.12	%		.10	%		.09	%		.15	%		.12	%
Government insured		53				54				55				54				50				.31	%		.33	%		.34	%		.34	%		.32	%
Credit card		26				25				20				21				21				.46	%		.47	%		.38	%		.41	%		.40	%
Other consumer
Automobile		20				16				12				10				12				.16	%		.13	%		.10	%		.08	%		.10	%
Education and other
Non government insured		12				15				9				11				12				.14	%		.17	%		.10	%		.12	%		.12	%
Government insured		52				53				54				50				66				.59	%		.59	%		.58	%		.53	%		.68	%
Total		$	238			$	255			$	219			$	227			$	232			.11	%		.12	%		.10	%		.11	%		.11	%

Table 13: Accruing Loans Past Due 90 Days or More (a)

		Amount																				Percent of Total Outstandings
		Dec. 31				Sept. 30				Jun. 30				Mar. 31				Dec. 31				Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions		2017				2017				2017				2017				2016				2017			2017			2017			2017			2016
Commercial		$	39			$	47			$	50			$	40			$	39			.04	%		.04	%		.05	%		.04	%		.04	%
Commercial real estate										2																		.01	%
Residential real estate
Non government insured		24				12				11				10				24				.14	%		.07	%		.07	%		.06	%		.15	%
Government insured		462				406				400				422				476				2.68	%		2.45	%		2.49	%		2.67	%		3.05	%
Credit card		45				38				36				37				37				.79	%		.71	%		.69	%		.72	%		.70	%
Other consumer
Automobile		8				5				4				5				5				.06	%		.04	%		.03	%		.04	%		.04	%
Education and other
Non government insured		11				9				8				9				10				.12	%		.10	%		.09	%		.10	%		.10	%
Government insured		148				161				163				176				191				1.67	%		1.78	%		1.75	%		1.88	%		1.98	%
Total		$	737			$	678			$	674			$	699			$	782			.33	%		.31	%		.31	%		.33	%		.37	%

(a) Excludes loans held for sale and purchased impaired loans.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

 

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers within our primary geographic markets. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Georgia, Alabama, Missouri, Wisconsin and South Carolina. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to government agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Our mortgage servicing operation performs all functions related to servicing residential mortgage loans for investors and for loans we own. Brokerage, investment management and cash management products and services include managed accounts, education accounts, retirement accounts and trust and estate services.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, government and not-for-profit entities. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting and global trade services. Capital markets-related products and services include foreign exchange, derivatives, securities, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally. We offer certain products and services internationally.

Asset Management Group provides personal wealth management for high net worth and ultra high net worth clients and institutional asset management. Wealth management products and services include investment and retirement planning, customized investment management, private banking, tailored credit solutions, and trust management and administration for individuals and their families. Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth families. Institutional asset management provides advisory, custody and retirement administration services. The business also offers PNC proprietary mutual funds. Institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments, primarily located in our geographic footprint.

BlackRock, in which we hold an equity investment, is a leading publicly traded investment management firm providing a broad range of investment and risk management services to institutional and retail clients worldwide. Using a diverse platform of active and index investment strategies across asset classes, BlackRock develops investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. BlackRock also offers an investment and risk management technology platform, risk analytics, advisory and technology services and solutions to a broad base of institutional and wealth management investors. Our equity investment in BlackRock provides us with an additional source of noninterest income and increases our overall revenue diversification. BlackRock is a publicly traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At December 31, 2017, our economic interest in BlackRock was 22%.

Table 14: Period End Employees (a)

	December 31			September 30			June 30			March 31			December 31
	2017			2017			2017			2017			2016
Full-time employees
Retail Banking	29,604			29,486			29,463			29,606			29,491
Other full-time employees	20,754			20,637			20,399			20,065			19,869
Total full-time employees	50,358			50,123			49,862			49,671			49,360
Part-time employees
Retail Banking	2,368			2,422			2,554			2,492			2,458
Other part-time employees	180			223			540			192			188
Total part-time employees	2,548			2,645			3,094			2,684			2,646
Total	52,906			52,768			52,956			52,355			52,006

 

(a) See note (a) on page 11. In each of the second and third quarters of 2017, certain personnel were moved from Other into Retail Banking. Prior periods have been revised to reflect these changes.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Table 15: Summary of Business Segment Income and Revenue (Unaudited) (a) (b) (c)

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
In millions	2017				2017				2017				2017				2016					2017				2016
Income (loss)
Retail Banking	$	(145	)		$	232			$	230			$	213			$	228				$	530			$	1,023
Corporate & Institutional Banking	937				525				518				484				545					2,464				1,909
Asset Management Group	56				47				52				47				55					202				210
Other, including BlackRock (d)	1,243				322				297				330				219					2,192				843
Net income	$	2,091			$	1,126			$	1,097			$	1,074			$	1,047				$	5,388			$	3,985
Revenue
Retail Banking	$	1,535			$	1,819			$	1,784			$	1,724			$	1,775				$	6,862			$	7,204
Corporate & Institutional Banking	1,502				1,479				1,478				1,363				1,393					5,822				5,347
Asset Management Group	297				292				290				289				288					1,168				1,151
Other, including BlackRock (d)	926				535				508				508				418					2,477				1,460
Total revenue	$	4,260			$	4,125			$	4,060			$	3,884			$	3,874				$	16,329			$	15,162

 

(a)

Effective for the first quarter of 2017, as a result of changes to how we manage our businesses, we realigned our segments and, accordingly, have changed the basis of presentation of our segments, resulting in four reportable business segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group and BlackRock. For purposes of this presentation, we have combined BlackRock with Other. All 2016 prior periods presented were revised to conform to the new segment alignment.

(b)

Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors. We periodically refine our internal methodologies as management reporting practices are enhanced. In the first quarter of 2017, we made certain adjustments to our internal funds transfer pricing methodology primarily relating to weighted average lives of certain non-maturity deposits. These changes in methodology affected business segment results, primarily adversely impacting net interest income for Corporate & Institutional Banking and Retail Banking, offset by increased net interest income in Other. All 2016 prior periods presented were revised to reflect our change in internal funds transfer pricing methodology.

(c)

The fourth quarter and full year 2017 results benefited from the new federal tax legislation. Our business segment results for these periods reflect the allocation of the impact of the new tax legislation to our business segments, including the revaluation of our deferred taxes. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. As a result, the amounts could be adjusted during the measurement period, which will end in December 2018.

(d)	Includes earnings and gains or losses related to PNC's equity interest in BlackRock and residual activities that do not meet the criteria for disclosure as a separate reportable business. We provide additional information on these activities in our Form 10-K and Form 10-Q filings with the SEC.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Table 16: Retail Banking (Unaudited) (a)

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
Dollars in millions	2017				2017				2017				2017				2016					2017				2016
Income Statement
Net interest income	$	1,190			$	1,176			$	1,139			$	1,121			$	1,120				$	4,626			$	4,511
Noninterest income	345				643				645				603				655					2,236				2,693
Total revenue	1,535				1,819				1,784				1,724				1,775					6,862				7,204
Provision for credit losses	149				77				50				71				87					347				297
Noninterest expense	1,391				1,375				1,370				1,315				1,328					5,451				5,291
Pretax earnings (loss)	(5		)		367				364				338				360					1,064				1,616
Income taxes	140				135				134				125				132					534				593
Earnings (loss)	$	(145	)		$	232			$	230			$	213			$	228				$	530			$	1,023
Average Balance Sheet
Loans held for sale	$	819			$	802			$	730			$	843			$	1,060				$	799			$	942
Loans
Consumer
Home equity	$	24,933			$	25,173			$	25,413			$	25,601			$	25,768				$	25,278			$	26,204
Automobile	12,767				12,484				12,220				12,146				11,868					12,407				11,248
Education	4,567				4,723				4,913				5,131				5,289					4,832				5,562
Credit cards	5,450				5,280				5,137				5,121				5,099					5,248				4,889
Other	1,793				1,787				1,760				1,756				1,762					1,773				1,789
Total consumer	49,510				49,447				49,443				49,755				49,786					49,538				49,692
Commercial and commercial real estate	10,513				10,630				10,925				11,006				11,082					10,767				11,410
Residential mortgage	12,950				12,382				11,918				11,688				11,169					12,238				10,682
Total loans	$	72,973			$	72,459			$	72,286			$	72,449			$	72,037				$	72,543			$	71,784
Total assets	$	88,883			$	88,642			$	88,671			$	87,109			$	86,133				$	88,663			$	85,871
Deposits
Noninterest-bearing demand	$	30,344			$	30,222			$	29,540			$	29,010			$	29,422				$	29,788			$	28,364
Interest-bearing demand	40,954				40,762				41,465				40,649				39,170					40,958				38,584
Money market	33,922				35,671				37,523				39,321				41,009					36,592				44,855
Savings	41,536				39,908				38,358				35,326				32,111					38,802				27,340
Certificates of deposit	12,554				12,962				13,304				13,735				14,150					13,135				14,770
Total deposits	$	159,310			$	159,525			$	160,190			$	158,041			$	155,862				$	159,275			$	153,913
Performance Ratios
Return on average assets	(.65		)%		1.04		%		1.04		%		.99		%		1.05		%			.60		%		1.19		%
Noninterest income to total revenue	22		%		35		%		36		%		35		%		37		%			33		%		37		%
Efficiency	91		%		76		%		77		%		76		%		75		%			79		%		73		%

 

(a)	See notes (a) and (c) on page 11.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Retail Banking (Unaudited) (Continued)

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
Dollars in millions, except as noted	2017				2017				2017				2017				2016					2017				2016
Supplemental Noninterest Income Information
Consumer services	$	279			$	273			$	277			$	250			$	269				$	1,079			$	1,061
Brokerage	$	81			$	77			$	78			$	76			$	73				$	312			$	295
Residential mortgage	$	29			$	104			$	104			$	113			$	142				$	350			$	567
Service charges on deposits	$	177			$	174			$	163			$	154			$	165				$	668			$	639
Residential Mortgage Information
Residential mortgage servicing statistics     (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	127			$	129			$	131			$	130			$	125
Serviced portfolio acquisitions	$	1			$	2			$	8			$	8			$	3				$	19			$	19
MSR asset value (b)	$	1.2			$	1.2			$	1.2			$	1.3			$	1.2
MSR capitalization value (in basis points) (b)	92				95				95				97				94
Servicing income: (in millions)
Servicing fees, net (c)	$	45			$	46			$	44			$	52			$	42				$	187			$	192
Mortgage servicing rights valuation, net of economic hedge	$	(60	)		$	7			$	11			$	12			$	35				$	(30	)		$	92
Residential mortgage loan statistics
Loan origination volume (in billions)	$	2.4			$	2.5			$	2.2			$	1.9			$	3.0				$	9.0			$	10.6
Loan sale margin percentage	2.71		%		2.80		%		2.74		%		2.96		%		2.79		%			2.80		%		3.17		%
Percentage of originations represented by:
Purchase volume (d)	50		%		57		%		61		%		43		%		33		%			53		%		40		%
Refinance volume	50		%		43		%		39		%		57		%		67		%			47		%		60		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	54		%		54		%		52		%		52		%		51		%			53		%		49		%
Digital consumer customers (f)	63		%		62		%		62		%		61		%		60		%			62		%		58		%
Credit-related statistics
Nonperforming assets	$	1,129			$	1,126			$	1,149			$	1,209			$	1,257
Net charge-offs	$	99			$	85			$	87			$	100			$	90				$	371			$	351
Other statistics
ATMs	9,051				8,987				8,972				8,976				9,024
Branches (g)	2,459				2,474				2,481				2,508				2,520
Universal branches (h)	512				517				518				527				526
Brokerage account client assets (in billions) (i)	$	49			$	48			$	46			$	46			$	44

(a)	Represents mortgage loan servicing balances for third parties and the related income.

(b)	Presented as of period end, except for customer-related statistics which are averages for the quarterly and year-to-date periods, respectively, and net charge-offs, which are for the three months and year-ended, respectively.

(c)	Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan prepayments and loans that were paid down or paid off during the period.

(d)	Mortgages with borrowers as part of residential real estate purchase transactions.

(e)	Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.

(f)	Represents consumer checking relationships that process the majority of their transactions through non-teller channels.

(g)	Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.

(h)	Included in total branches, represents branches operating under our Universal model.

(i)	Includes cash and money market balances.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

Table 17: Corporate & Institutional Banking (Unaudited) (a)

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
Dollars in millions	2017				2017				2017				2017				2016					2017				2016
Income Statement
Net interest income	$	898			$	924			$	890			$	839			$	864				$	3,551			$	3,312
Noninterest income	604				555				588				524				529					2,271				2,035
Total revenue	1,502				1,479				1,478				1,363				1,393					5,822				5,347
Provision for credit losses (benefit)	(14		)		62				87				25				(3		)			160				177
Noninterest expense	643				599				602				584				567					2,428				2,222
Pretax earnings	873				818				789				754				829					3,234				2,948
Income taxes (benefit)	(64		)		293				271				270				284					770				1,039
Earnings	$	937			$	525			$	518			$	484			$	545				$	2,464			$	1,909
Average Balance Sheet
Loans held for sale	$	845			$	917			$	716			$	1,116			$	965				$	898			$	868
Loans
Commercial	$	100,726			$	98,794			$	96,012			$	92,116			$	90,816				$	96,937			$	88,934
Commercial real estate	27,259				27,559				27,575				27,091				27,124					27,372				26,677
Equipment lease financing	7,670				7,704				7,602				7,497				7,398					7,619				7,463
Total commercial lending	135,655				134,057				131,189				126,704				125,338					131,928				123,074
Consumer	107				222				278				331				352					233				424
Total loans	$	135,762			$	134,279			$	131,467			$	127,035			$	125,690				$	132,161			$	123,498
Total assets	$	151,721			$	150,948			$	148,267			$	142,592			$	142,325				$	148,414			$	140,309
Deposits
Noninterest-bearing demand	$	48,116			$	47,180			$	46,327			$	47,423			$	49,772				$	47,264			$	48,072
Money market	23,992				23,413				21,321				21,086				22,569					22,464				22,543
Interest-bearing demand and other	17,247				16,879				16,016				15,391				16,190					16,389				13,943
Total deposits	$	89,355			$	87,472			$	83,664			$	83,900			$	88,531				$	86,117			$	84,558
Performance Ratios
Return on average assets	2.45		%		1.38		%		1.40		%		1.38		%		1.52		%			1.66		%		1.36		%
Noninterest income to total revenue	40		%		38		%		40		%		38		%		38		%			39		%		38		%
Efficiency	43		%		41		%		41		%		43		%		41		%			42		%		42		%
Other Information
Consolidated revenue from: (b)
Treasury Management (c)	$	401			$	384			$	372			$	359			$	358				$	1,516			$	1,348
Capital Markets (c)	$	271			$	231			$	268			$	247			$	208				$	1,017			$	808
Commercial mortgage banking activities
Commercial mortgage loans held for sale (d)	$	42			$	22			$	38			$	13			$	50				$	115			$	127
Commercial mortgage loan servicing income (e)	59				56				55				58				62					228				248
Commercial mortgage servicing rights valuation, net of economic hedge (f)	13				6				19				16				22					54				44
Total	$	114			$	84			$	112			$	87			$	134				$	397			$	419
Average Loans (by C&IB business)
Corporate Banking	$	57,064			$	56,867			$	54,937			$	53,839			$	52,920				$	55,701			$	51,392
Real Estate	38,949				38,516				38,318				37,136				37,262					38,235				36,493
Business Credit	16,612				16,097				15,645				14,839				14,741					15,804				14,763
Equipment Finance	13,912				13,744				13,481				12,478				12,096					13,408				11,826
Commercial Banking	6,957				7,042				7,124				7,041				6,914					7,028				7,159
Other	2,268				2,013				1,962				1,702				1,757					1,985				1,865
Total average loans	$	135,762			$	134,279			$	131,467			$	127,035			$	125,690				$	132,161			$	123,498
MSR asset value (g)	$	668			$	628			$	618			$	606			$	576
Credit-related statistics
Nonperforming assets (g)	$	531			$	549			$	586			$	546			$	691
Net charge-offs	$	29			$	22			$	21			$	21			$	17				$	93			$	180

 

(a)	See notes (a) and (c) on page 11.

(b)	Represents consolidated amounts.

(c)	Includes amounts reported in net interest income and noninterest income, predominantly in corporate service fees.

(d)	Includes other noninterest income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, originations fees, gains on sale of loans held for sale and net interest income on loans held for sale.

(e)	Includes net interest income and noninterest income (primarily in corporate service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to time decay and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(f)	Includes amounts reported in corporate service fees.

(g)	Presented as of period end.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

Table 18: Asset Management Group (Unaudited) (a)

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
Dollars in millions, except as noted	2017				2017				2017				2017				2016					2017				2016
Income Statement
Net interest income	$	71			$	72			$	73			$	71			$	73				$	287			$	300
Noninterest income	226				220				217				218				215					881				851
Total revenue	297				292				290				289				288					1,168				1,151
Provision for credit losses (benefit)	7				3				(7		)		(2		)		(6		)			1				(6		)
Noninterest expense	217				214				215				217				207					863				825
Pretax earnings	73				75				82				74				87					304				332
Income taxes	17				28				30				27				32					102				122
Earnings	$	56			$	47			$	52			$	47			$	55				$	202			$	210
Average Balance Sheet
Loans
Consumer	$	4,894			$	4,977			$	5,089			$	5,113			$	5,266				$	5,018			$	5,436
Commercial and commercial real estate	745				680				700				728				738					715				754
Residential mortgage	1,433				1,330				1,246				1,190				1,137					1,301				1,058
Total loans	$	7,072			$	6,987			$	7,035			$	7,031			$	7,141				$	7,034			$	7,248
Total assets	$	7,545			$	7,464			$	7,516			$	7,476			$	7,597				$	7,511			$	7,707
Deposits
Noninterest-bearing demand	$	1,609			$	1,464			$	1,468			$	1,433			$	1,497				$	1,528			$	1,431
Interest-bearing demand	3,517				3,469				3,704				3,829				3,844					3,628				4,013
Money market	2,863				3,058				3,219				3,500				3,682					3,158				4,128
Savings	4,282				3,961				3,770				3,768				3,113					3,947				2,303
Other	288				237				230				246				272					250				275
Total deposits	$	12,559			$	12,189			$	12,391			$	12,776			$	12,408				$	12,511			$	12,150
Performance Ratios
Return on average assets	2.94		%		2.50		%		2.78		%		2.55		%		2.87		%			2.69		%		2.72		%
Noninterest income to total revenue	76		%		75		%		75		%		75		%		75		%			75		%		74		%
Efficiency	73		%		73		%		74		%		75		%		72		%			74		%		72		%
Other Information
Nonperforming assets (b)	$	49			$	45			$	49			$	51			$	53
Net charge-offs	$	(1	)		$	3			$	1			$	1			$	2				$	4			$	9
Client Assets Under Administration     (in billions) (b) (c)
Discretionary client assets under management	$	151			$	146			$	141			$	141			$	137
Nondiscretionary client assets under administration	131				129				125				123				120
Total	$	282			$	275			$	266			$	264			$	257
Discretionary client assets under management
Personal	$	94			$	90			$	89			$	87			$	85
Institutional	57				56				52				54				52
Total	$	151			$	146			$	141			$	141			$	137

 

(a)	See notes (a) and (c) on page 11.

(b)	As of period end.

(c)	Excludes brokerage account client assets.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Glossary of Terms

Adjusted average total assets - Primarily consisted of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on investment securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

Basel III common equity Tier 1 capital - Common stock plus related surplus, net of treasury stock, plus retained earnings, plus accumulated other comprehensive income for securities currently and previously held as available for sale, plus accumulated other comprehensive income for pension and other postretirement benefit plans, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments.

Basel III common equity Tier 1 capital ratio - Common equity Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Tier 1 capital - Common equity Tier 1 capital, plus qualifying preferred stock, plus certain trust preferred capital securities, plus certain noncontrolling interests that are held by others and plus/less other adjustments.

Basel III Tier 1 capital ratio - Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Total capital - Tier 1 capital plus qualifying subordinated debt, plus certain trust preferred securities, plus, under the Basel III transitional rules and the standardized approach, the allowance for loan and lease losses included in Tier 2 capital and other.

Basel III Total capital ratio - Total capital divided by period-end risk-weighted assets (as applicable).

Charge-off - Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred from portfolio holdings to held for sale by reducing the loan carrying amount to the fair value of the loan, if fair value is less than carrying amount.

Combined loan-to-value ratio (CLTV) - This is the aggregate principal balance(s) of the mortgages on a property divided by its appraised value or purchase price.

Common shareholders’ equity - Total shareholders' equity less the liquidation value of preferred stock.

Credit valuation adjustment - Represents an adjustment to the fair value of our derivatives for our own and counterparties’ non-performance risk.

Criticized commercial loans - Loans with potential or identified weaknesses based upon internal risk ratings that comply with the regulatory classification definitions of “Special Mention,” “Substandard” or “Doubtful.”

Discretionary client assets under management - Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

Duration of equity - An estimate of the rate sensitivity of our economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., positioned for declining interest rates). For example, if the duration of equity is -1.5 years, the economic value of equity increases by 1.5% for each 100 basis point increase in interest rates.

Earning assets - Assets that generate income, which include: interest-earning deposits with banks; loans held for sale; loans; investment securities; and certain other assets.

Effective duration - A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

Efficiency - Noninterest expense divided by total revenue.

Fair value - The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fee income - When referring to the components of Noninterest income, we use the term fee income to refer to the following categories within Noninterest income: Asset management; Consumer services; Corporate services; Residential mortgage; and Service charges on deposits.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

FICO score - A credit bureau-based industry standard score created by Fair Isaac Co. which predicts the likelihood of borrower default. We use FICO scores both in underwriting and assessing credit risk in our consumer lending portfolio. Lower FICO scores indicate likely higher risk of default, while higher FICO scores indicate likely lower risk of default. FICO scores are updated on a periodic basis.

Futures and forward contracts - Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

GAAP - Accounting principles generally accepted in the United States of America.

Impaired loans - Loans are determined to be impaired when, based on current information and events, it is probable that all contractually required payments will not be collected. Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status. Excluded from impaired loans are nonperforming leases, loans held for sale, loans accounted for under the fair value option, smaller balance homogenous type loans and purchased impaired loans.

Leverage ratio - Tier 1 capital divided by average quarterly adjusted total assets.

LIBOR - Acronym for London InterBank Offered Rate. LIBOR is the average interest rate charged when banks in the London wholesale money market (or interbank market) borrow unsecured funds from each other. LIBOR rates are used as a benchmark for interest rates on a global basis. Our product set includes loans priced using LIBOR as a benchmark.

Loan-to-value ratio (LTV) - A calculation of a loan's collateral coverage that is used both in underwriting and assessing credit risk in our lending portfolio. LTV is the sum total of loan obligations secured by collateral divided by the market value of that same collateral. Market values of the collateral are based on an independent valuation of the collateral. For example, a LTV of less than 90% is better secured and has less credit risk than a LTV of greater than or equal to 90%.

Loss given default (LGD) - An estimate of loss, net of recovery based on collateral type, collateral value, loan exposure, and other factors. Each loan has its own LGD. The LGD risk rating measures the percentage of exposure of a specific credit obligation that we expect to lose if default occurs. LGD is net of recovery, through any means, including but not limited to the liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.

Nonaccrual loans - Loans for which we do not accrue interest income. Nonaccrual loans include nonperforming loans, in addition to loans accounted for under the fair value option and loans accounted for as held for sale for which full collection of contractual principal and/or interest is not probable.

Nondiscretionary client assets under administration - Assets we hold for our customers/clients in a nondiscretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Nonperforming assets - Nonperforming assets include nonperforming loans and OREO, foreclosed and other assets, but exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale, loans accounted for under the fair value option and purchased impaired loans. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans - Loans accounted for at amortized cost for which we do not accrue interest income. Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, home equity, residential real estate, credit card and other consumer customers as well as TDRs which have not returned to performing status. Nonperforming loans exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale, loans accounted for under the fair value option and purchased impaired loans. Nonperforming loans exclude purchased impaired loans as we are currently accreting interest income over the expected life of the loans.

Notional amount - A number of currency units, shares, or other units specified in a derivative contract.

Operating leverage - The period to period dollar or percentage change in total revenue (GAAP basis) less the dollar or percentage change in noninterest expense. A positive variance indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative variance implies expense growth exceeded revenue growth (i.e., negative operating leverage).

Options - Contracts that grant the purchaser, for a premium payment, the right, but not the obligation, to either purchase or sell the associated financial instrument at a set price during a specified period or at a specified date in the future.

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Other real estate owned (OREO), foreclosed and other assets - Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed and other assets include real and personal property, equity interests in corporations, partnerships, and limited liability companies. Excludes certain assets that have a government-guarantee which are classified as other receivables.

Probability of default (PD) - An internal risk rating that indicates the likelihood that a credit obligor will enter into default status.

Recovery - Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

Risk-weighted assets - Computed by the assignment of specific risk-weights (as defined by the Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Servicing rights - An intangible asset or liability created by an obligation to service assets for others. Typical servicing rights include the right to receive a fee for collecting and forwarding payments on loans and related taxes and insurance premiums held in escrow.

Taxable-equivalent interest income - The interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

Transitional Basel III common equity Tier 1 capital – Common equity Tier 1 capital calculated under Basel III using phased in definitions and deductions applicable to us during the related presentation period and standardized approach risk-weighted assets.

Troubled debt restructuring (TDR) - A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

Yield curve - A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.