Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2018

(Unaudited)

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THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2018

(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 July 13, 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. PNC's primary geographic markets are located in the Mid-Atlantic, Midwest and Southeast. PNC also provides certain products and services internationally.

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THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Second Quarter 2018 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 June 30, 2018	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																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
In millions, except per share data	2018				2018				2017				2017				2017					2018				2017
Interest Income
Loans	$	2,345			$	2,228			$	2,154			$	2,140			$	2,040				$	4,573			$	3,944
Investment securities	557				512				509				501				495					1,069				988
Other	180				178				162				154				139					358				262
Total interest income	3,082				2,918				2,825				2,795				2,674					6,000				5,194
Interest Expense
Deposits	261				213				190				170				143					474				263
Borrowed funds	408				344				290				280				273					752				513
Total interest expense	669				557				480				450				416					1,226				776
Net interest income	2,413				2,361				2,345				2,345				2,258					4,774				4,418
Noninterest Income
Asset management	456				455				720				421				398					911				801
Consumer services	381				357				366				357				360					738				692
Corporate services (a)	487				429				458				404				466					916				880
Residential mortgage	84				97				29				104				104					181				217
Service charges on deposits	169				167				183				181				170					336				331
Other (a) (b)	334				245				159				313				304					579				605
Total noninterest income	1,911				1,750				1,915				1,780				1,802					3,661				3,526
Total revenue	4,324				4,111				4,260				4,125				4,060					8,435				7,944
Provision For Credit Losses	80				92				125				130				98					172				186
Noninterest Expense
Personnel	1,356				1,354				1,449				1,286				1,276					2,710				2,533
Occupancy	203				218				240				204				202					421				424
Equipment	281				273				274				259				281					554				532
Marketing	75				55				60				62				67					130				122
Other	669				627				1,038				645				653					1,296				1,270
Total noninterest expense	2,584				2,527				3,061				2,456				2,479					5,111				4,881
Income before income taxes (benefit) and noncontrolling interests	1,660				1,492				1,074				1,539				1,483					3,152				2,877
Income taxes (benefit)	304				253				(1,017		)		413				386					557				706
Net income	1,356				1,239				2,091				1,126				1,097					2,595				2,171
Less: Net income attributable to noncontrolling interests	10				10				11				12				10					20				27
Preferred stock dividends (c)	55				63				55				63				55					118				118
Preferred stock discount accretion and redemptions	1				1				2				1				2					2				23
Net income attributable to common shareholders	$	1,290			$	1,165			$	2,023			$	1,050			$	1,030				$	2,455			$	2,003
Earnings Per Common Share
Basic	$	2.74			$	2.45			$	4.23			$	2.18			$	2.12				$	5.19			$	4.10
Diluted	$	2.72			$	2.43			$	4.18			$	2.16			$	2.10				$	5.15			$	4.05
Average Common Shares Outstanding
Basic	469				473				476				479				484					471				486
Diluted	472				476				480				483				488					474				491
Efficiency	60		%		61		%		72		%		60		%		61		%			61		%		61		%
Noninterest income to total revenue	44		%		43		%		45		%		43		%		44		%			43		%		44		%
Effective tax rate (d)	18.3		%		17.0		%		(94.7		)%		26.8		%		26.0		%			17.7		%		24.5		%

(a)

In the first quarter 2018, we reclassified operating lease income to corporate services noninterest income from other noninterest income. Prior period amounts were reclassified for operating lease income of $35 million, $34 million and $31 million for the three months ended December 31, 2017, September 30, 2017 and June 30, 2017, respectively, and $53 million for the six months ended June 30, 2017.

(b)	Includes net gains (losses) on sales of securities of $(3) million, $(1) million, $(3) million, $(1) million, and $13 million for the quarters ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively, and $(4) million and $11 million for the six months ended June 30, 2018 and June 30, 2017, respectively.

(c)	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.

(d)

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 first and second quarter 2018 results reflected the change in the statutory federal income tax rate from 35% to 21%, effective as of January 1, 2018, as a result of the new federal tax legislation. The fourth quarter 2017 results benefited from an income tax benefit from the new federal tax legislation primarily attributable to revaluation of deferred tax liabilities at the lower statutory tax rate. Where certain income tax effects could be reasonably estimated, these were included as provisional amounts as of December 31, 2017. As a result, these provisional amounts could be adjusted during the measurement period, which will end in December 2018. No changes were made to these provisional amounts during the first or second quarters of 2018.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

	June 30				March 31				December 31				September 30				June 30
In millions, except par value	2018				2018				2017				2017				2017
Assets
Cash and due from banks	$	5,425			$	4,649			$	5,249			$	4,736			$	5,039
Interest-earning deposits with banks (a)	21,972				28,821				28,595				24,713				22,482
Loans held for sale (b)	1,325				965				2,655				1,764				2,030
Investment securities – available for sale	60,275				56,018				57,618				57,254				58,878
Investment securities – held to maturity	19,850				18,544				18,513				17,740				17,553
Loans (b)	222,855				221,614				220,458				221,109				218,034
Allowance for loan and lease losses	(2,581		)		(2,604		)		(2,611		)		(2,605		)		(2,561		)
Net loans	220,274				219,010				217,847				218,504				215,473
Equity investments (c)	12,430				12,008				11,392				11,009				10,819
Mortgage servicing rights	2,045				1,979				1,832				1,854				1,867
Goodwill	9,218				9,218				9,173				9,163				9,163
Other (b)	27,897				27,949				27,894				28,454				28,886
Total assets	$	380,711			$	379,161			$	380,768			$	375,191			$	372,190
Liabilities
Deposits
Noninterest-bearing	$	79,047			$	78,303			$	79,864			$	79,967			$	79,550
Interest-bearing	185,838				186,401				185,189				180,768				179,626
Total deposits	264,885				264,704				265,053				260,735				259,176
Borrowed funds
Federal Home Loan Bank borrowings	22,036				19,537				21,037				20,538				19,039
Bank notes and senior debt	27,596				28,773				28,062				26,467				26,054
Subordinated debt	4,781				5,121				5,200				5,601				6,111
Other (b)	4,809				4,608				4,789				4,958				5,202
Total borrowed funds	59,222				58,039				59,088				57,564				56,406
Allowance for unfunded loan commitments and letters of credit	289				290				297				293				304
Accrued expenses and other liabilities	9,340				9,093				8,745				10,147				10,119
Total liabilities	333,736				332,126				333,183				328,739				326,005
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares	2,710				2,710				2,710				2,710				2,710
Capital surplus	16,250				16,227				16,374				16,343				16,326
Retained earnings	37,201				36,266				35,481				33,819				33,133
Accumulated other comprehensive income (loss)	(940		)		(699		)		(148		)		(22		)		(98		)
Common stock held in treasury at cost: 77, 72, 69, 66 and 62 shares	(8,317		)		(7,535		)		(6,904		)		(6,462		)		(5,987		)
Total shareholders’ equity	46,904				46,969				47,513				46,388				46,084
Noncontrolling interests	71				66				72				64				101
Total equity	46,975				47,035				47,585				46,452				46,185
Total liabilities and equity	$	380,711			$	379,161			$	380,768			$	375,191			$	372,190

 

(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $21.6 billion, $28.6 billion, $28.3 billion, $24.3 billion and $22.1 billion as of June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our first quarter 2018 Form 10-Q included, and our second quarter 2018 Form 10-Q will include, additional information regarding these items.

(c)

Amounts include our equity interest in BlackRock. The amount at March 31, 2018 included $.6 billion of trading and available for sale securities, primarily money market funds, that were reclassified to Equity investments on January 1, 2018 in accordance with the adoption of Accounting Standards Update 2016-01, Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities.

(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																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
In millions	2018				2018				2017				2017				2017					2018				2017
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	26,527			$	25,438			$	25,338			$	25,493			$	25,862				$	25,986			$	26,122
Non-agency	2,271				2,398				2,577				2,758				2,947					2,334				3,037
Commercial mortgage-backed	4,449				4,534				4,542				4,838				5,493					4,491				5,705
Asset-backed	5,161				5,158				5,330				5,546				5,863					5,160				5,927
U.S. Treasury and government agencies	15,719				14,307				13,646				13,081				12,881					15,017				12,990
Other	4,112				4,233				4,940				5,011				5,093					4,172				5,193
Total securities available for sale	58,239				56,068				56,373				56,727				58,139					57,160				58,974
Securities held to maturity
Residential mortgage-backed	15,608				14,818				13,976				13,549				12,790					15,216				12,323
Commercial mortgage-backed	807				902				963				1,211				1,393					854				1,425
Asset-backed	194				199				220				358				490					196				523
U.S. Treasury and government agencies	747				743				739				561				533					745				531
Other	1,884				1,926				1,974				2,000				2,007					1,904				2,024
Total securities held to maturity	19,240				18,588				17,872				17,679				17,213					18,915				16,826
Total investment securities	77,479				74,656				74,245				74,406				75,352					76,075				75,800
Loans
Commercial	113,349				111,462				111,365				109,503				106,944					112,411				105,024
Commercial real estate	28,888				28,901				29,432				29,676				29,655					28,894				29,418
Equipment lease financing	7,494				7,845				7,670				7,704				7,602					7,670				7,550
Consumer	55,387				55,588				55,814				56,062				56,342					55,487				56,591
Residential real estate	17,566				17,308				16,840				16,273				15,830					17,437				15,741
Total loans	222,684				221,104				221,121				219,218				216,373					221,899				214,324
Interest-earning deposits with banks (b)	21,017				25,667				25,567				23,859				22,543					23,329				23,363
Other interest-earning assets	6,905				7,904				8,759				9,024				9,748					7,402				9,076
Total interest-earning assets	328,085				329,331				329,692				326,507				324,016					328,705				322,563
Noninterest-earning assets	47,542				46,944				47,136				46,890				46,286					47,244				45,807
Total assets	$	375,627			$	376,275			$	376,828			$	373,397			$	370,302				$	375,949			$	368,370
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	56,199			$	58,523			$	60,954			$	62,325			$	62,157				$	57,355			$	63,034
Demand	60,409				59,620				57,128				56,743				57,513					60,017				57,157
Savings	51,115				48,451				45,817				43,869				42,128					49,791				40,620
Time deposits	16,634				16,844				17,438				17,571				17,214					16,737				17,136
Total interest-bearing deposits	184,357				183,438				181,337				180,508				179,012					183,900				177,947
Borrowed funds
Federal Home Loan Bank borrowings	20,956				20,721				19,565				19,190				20,405					20,839				20,410
Bank notes and senior debt	28,787				28,987				27,778				26,602				24,817					28,887				23,910
Subordinated debt	4,855				5,179				5,433				5,970				6,607					5,016				6,854
Other	4,368				4,751				5,261				5,254				5,695					4,558				5,067
Total borrowed funds	58,966				59,638				58,037				57,016				57,524					59,300				56,241
Total interest-bearing liabilities	243,323				243,076				239,374				237,524				236,536					243,200				234,188
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	76,632				77,222				80,152				78,931				77,375					76,925				77,710
Accrued expenses and other liabilities	8,944				9,118				10,801				10,749				10,432					9,031				10,258
Equity	46,728				46,859				46,501				46,193				45,959					46,793				46,214
Total liabilities and equity	$	375,627			$	376,275			$	376,828			$	373,397			$	370,302				$	375,949			$	368,370

(a)	Calculated using average daily balances.

(b)	Amounts include average balances held with the Federal Reserve Bank of Cleveland of $20.7 billion, $25.4 billion, $25.3 billion, $23.4 billion and $22.1 billion for the three months ended June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017, respectively, and $23.1 billion and $22.9 billion for six months ended June 30, 2018 and June 30, 2017, respectfully.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Table 4: Details of Net Interest Margin (Unaudited) (a)
	Three months ended																Six months ended
	June 30			March 31			December 31			September 30			June 30				June 30			June 30
	2018			2018			2017			2017			2017				2018			2017
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.68	%		2.60	%		2.58	%		2.61	%		2.51	%			2.64	%		2.54	%
Non-agency	6.52	%		5.99	%		4.29	%		5.91	%		5.58	%			6.25	%		5.59	%
Commercial mortgage-backed	2.76	%		2.75	%		4.68	%		2.71	%		2.56	%			2.76	%		2.45	%
Asset-backed	3.11	%		2.87	%		2.82	%		2.53	%		2.48	%			2.99	%		2.49	%
U.S. Treasury and government agencies	2.25	%		2.07	%		1.79	%		1.83	%		1.78	%			2.17	%		1.72	%
Other	4.06	%		3.17	%		3.32	%		3.08	%		3.08	%			3.61	%		3.00	%
Total securities available for sale	2.85	%		2.69	%		2.73	%		2.63	%		2.56	%			2.77	%		2.54	%
Securities held to maturity
Residential mortgage-backed	2.89	%		2.84	%		2.74	%		2.81	%		2.82	%			2.86	%		2.80	%
Commercial mortgage-backed	3.71	%		3.76	%		4.11	%		4.42	%		4.30	%			3.74	%		3.89	%
Asset-backed	3.48	%		2.90	%		2.66	%		2.53	%		2.35	%			3.19	%		2.28	%
U.S. Treasury and government agencies	2.83	%		2.80	%		2.85	%		3.07	%		3.10	%			2.82	%		3.09	%
Other	4.39	%		4.44	%		5.28	%		5.30	%		5.28	%			4.42	%		5.31	%
Total securities held to maturity	3.07	%		3.05	%		3.10	%		3.20	%		3.22	%			3.06	%		3.19	%
Total investment securities	2.91	%		2.78	%		2.82	%		2.77	%		2.71	%			2.85	%		2.69	%
Loans
Commercial	3.97	%		3.74	%		3.59	%		3.54	%		3.45	%			3.86	%		3.35	%
Commercial real estate	4.04	%		3.81	%		3.68	%		3.65	%		3.48	%			3.93	%		3.38	%
Equipment lease financing	3.16	%		3.68	%		2.33	%		3.71	%		3.65	%			3.43	%		3.49	%
Consumer	4.96	%		4.87	%		4.72	%		4.67	%		4.52	%			4.92	%		4.49	%
Residential real estate	4.36	%		4.40	%		4.41	%		4.45	%		4.55	%			4.38	%		4.55	%
Total loans	4.23	%		4.09	%		3.91	%		3.92	%		3.82	%			4.16	%		3.75	%
Interest-earning deposits with banks	1.78	%		1.52	%		1.33	%		1.26	%		1.04	%			1.64	%		.92	%
Other interest-earning assets	4.98	%		4.11	%		3.55	%		3.47	%		3.38	%			4.52	%		3.46	%
Total yield on interest-earning assets	3.78	%		3.59	%		3.45	%		3.45	%		3.35	%			3.68	%		3.29	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	.64	%		.54	%		.45	%		.41	%		.30	%			.59	%		.27	%
Demand	.25	%		.21	%		.17	%		.14	%		.12	%			.23	%		.11	%
Savings	.74	%		.57	%		.51	%		.45	%		.45	%			.65	%		.44	%
Time deposits	.98	%		.88	%		.85	%		.79	%		.73	%			.93	%		.71	%
Total interest-bearing deposits	.57	%		.47	%		.42	%		.37	%		.32	%			.52	%		.30	%
Borrowed funds
Federal Home Loan Bank borrowings	2.23	%		1.76	%		1.48	%		1.37	%		1.23	%			2.00	%		1.16	%
Bank notes and senior debt	2.95	%		2.43	%		2.04	%		2.05	%		2.00	%			2.69	%		1.93	%
Subordinated debt	4.50	%		3.91	%		3.49	%		3.48	%		3.66	%			4.20	%		3.57	%
Other	1.82	%		2.18	%		1.74	%		1.60	%		1.67	%			2.01	%		1.54	%
Total borrowed funds	2.74	%		2.31	%		1.96	%		1.93	%		1.89	%			2.52	%		1.82	%
Total rate on interest-bearing liabilities	1.10	%		.91	%		.79	%		.75	%		.70	%			1.01	%		.66	%
Interest rate spread	2.68	%		2.68	%		2.66	%		2.70	%		2.65	%			2.67	%		2.63	%
Impact of noninterest-bearing sources (b)	.28			.23			.22			.21			.19				.27			.18
Net interest margin	2.96	%		2.91	%		2.88	%		2.91	%		2.84	%			2.94	%		2.81	%

(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, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating net interest 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 taxable investments. 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 June 30, 2018, March 31, 2018, December 31, 2017, September 30, 2017 and June 30, 2017 were $29 million, $29 million, $54 million, $55 million and $54 million, respectively. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2018 and June 30, 2017 were $58 million and $106 million, respectively. Taxable equivalent amounts for the 2018 periods were calculated using a statutory federal income tax rate of 21%, reflecting the enactment of the new federal tax legislation effective January 1, 2018. Amounts for the 2017 periods were calculated using the previously applicable statutory federal income tax rate of 35%.

(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																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
In millions, except per share data	2018				2018				2017				2017				2017					2018				2017
Basic
Net income	$	1,356			$	1,239			$	2,091			$	1,126			$	1,097				$	2,595			$	2,171
Less:
Net income attributable to noncontrolling interests	10				10				11				12				10					20				27
Preferred stock dividends (a)	55				63				55				63				55					118				118
Preferred stock discount accretion and redemptions	1				1				2				1				2					2				23
Net income attributable to common shareholders	1,290				1,165				2,023				1,050				1,030					2,455				2,003
Less:
Dividends and undistributed earnings allocated to nonvested restricted shares	5				5				8				5				4					10				10
Net income attributable to basic common shares	$	1,285			$	1,160			$	2,015			$	1,045			$	1,026				$	2,445			$	1,993
Basic weighted-average common shares outstanding	469				473				476				479				484					471				486
Basic earnings per common share	$	2.74			$	2.45			$	4.23			$	2.18			$	2.12				$	5.19			$	4.10
Diluted
Net income attributable to basic common shares	$	1,285			$	1,160			$	2,015			$	1,045			$	1,026				$	2,445			$	1,993
Less: Impact of BlackRock earnings per share dilution	3				2				8				3				1					5				5
Net income attributable to diluted common shares	$	1,282			$	1,158			$	2,007			$	1,042			$	1,025				$	2,440			$	1,988
Basic weighted-average common shares outstanding	469				473				476				479				484					471				486
Dilutive potential common shares	3				3				4				4				4					3				5
Diluted weighted-average common shares outstanding	472				476				480				483				488					474				491
Diluted earnings per common share	$	2.72			$	2.43			$	4.18			$	2.16			$	2.10				$	5.15			$	4.05

(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)

		June 30				March 31				December 31				September 30				June 30
In millions		2018				2018				2017				2017				2017
Commercial lending
Commercial
Manufacturing		$	21,667			$	21,367			$	20,578			$	20,658			$	20,533
Retail/wholesale trade		19,299				18,232				17,846				18,256				18,101
Service providers		14,343				14,554				15,100				15,014				15,111
Real estate related (a)		12,688				12,701				12,496				12,174				12,179
Health care		9,564				9,937				9,739				9,659				9,541
Financial services		9,241				9,479				8,532				10,968				8,493
Transportation and warehousing		5,531				5,488				5,609				5,597				5,589
Other industries		21,034				20,550				20,627				18,991				19,010
Total commercial		113,367				112,308				110,527				111,317				108,557
Commercial real estate		28,946				28,835				28,978				29,516				29,489
Equipment lease financing		7,323				7,802				7,934				7,694				7,719
Total commercial lending		149,636				148,945				147,439				148,527				145,765
Consumer lending
Home equity		27,219				27,699				28,364				28,811				29,219
Residential real estate		17,805				17,456				17,212				16,601				16,049
Credit card		5,830				5,657				5,699				5,375				5,211
Other consumer
Automobile		13,892				13,295				12,880				12,743				12,488
Education		4,057				4,228				4,454				4,620				4,751
Other		4,416				4,334				4,410				4,432				4,551
Total consumer lending		73,219				72,669				73,019				72,582				72,269
Total loans		$	222,855			$	221,614			$	220,458			$	221,109			$	218,034

(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

		June 30				March 31				December 31				September 30				June 30
Three months ended - in millions		2018				2018				2017				2017				2017
Beginning balance		$	2,604			$	2,611			$	2,605			$	2,561			$	2,561
Gross charge-offs:
Commercial		(24		)		(28		)		(46		)		(39		)		(48		)
Commercial real estate		(2		)		(6		)		(15		)		(6		)		(2		)
Equipment lease financing		(2		)		(2		)		(5		)		(4		)		(1		)
Home equity		(33		)		(28		)		(25		)		(26		)		(38		)
Residential real estate		(4		)		(2		)		(1		)		(4		)
Credit card		(53		)		(56		)		(46		)		(44		)		(46		)
Other consumer
Automobile		(39		)		(38		)		(37		)		(31		)		(28		)
Education		(8		)		(9		)		(11		)		(7		)		(9		)
Other		(28		)		(24		)		(23		)		(24		)		(22		)
Total gross charge-offs		(193		)		(193		)		(209		)		(185		)		(194		)
Recoveries:
Commercial		16				16				20				17				20
Commercial real estate		8				6				7				6				8
Equipment lease financing		1				4				3				2				1
Home equity		23				21				24				24				23
Residential real estate		6				4				6				4				4
Credit card		6				6				5				5				6
Other consumer
Automobile		18				17				15				15				15
Education		2				2				2				2				2
Other		4				4				4				4				5
Total recoveries		84				80				86				79				84
Net (charge-offs) / recoveries:
Commercial		(8		)		(12		)		(26		)		(22		)		(28		)
Commercial real estate		6								(8		)						6
Equipment lease financing		(1		)		2				(2		)		(2		)
Home equity		(10		)		(7		)		(1		)		(2		)		(15		)
Residential real estate		2				2				5								4
Credit card		(47		)		(50		)		(41		)		(39		)		(40		)
Other consumer
Automobile		(21		)		(21		)		(22		)		(16		)		(13		)
Education		(6		)		(7		)		(9		)		(5		)		(7		)
Other		(24		)		(20		)		(19		)		(20		)		(17		)
Total net (charge-offs)		(109		)		(113		)		(123		)		(106		)		(110		)
Provision for credit losses		80				92				125				130				98
Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit		1				7				(4		)		11				1
Other		5				7				8				9				11
Ending balance		$	2,581			$	2,604			$	2,611			$	2,605			$	2,561
Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		.20		%		.21		%		.22		%		.19		%		.20		%
Allowance for loan and lease losses to total loans		1.16		%		1.18		%		1.18		%		1.18		%		1.17		%
Commercial lending net charge-offs		$	(3	)		$	(10	)		$	(36	)		$	(24	)		$	(22	)
Consumer lending net charge-offs		(106		)		(103		)		(87		)		(82		)		(88		)
Total net charge-offs		$	(109	)		$	(113	)		$	(123	)		$	(106	)		$	(110	)
Net charge-offs to average loans
Commercial lending		.01		%		.03		%		.10		%		.06		%		.06		%
Consumer lending		.58		%		.57		%		.48		%		.45		%		.49		%

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type

		June 30				March 31				December 31				September 30				June 30
In millions		2018				2018				2017				2017				2017
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade		$	65			$	126			$	115			$	76			$	86
Manufacturing		49				67				55				63				65
Service providers		48				36				35				48				52
Real estate related (a)		22				25				33				37				26
Health care		15				13				15				23				33
Transportation and warehousing		3				3				27				15				16
Other industries		136				156				149				157				190
Total commercial		338				426				429				419				468
Commercial real estate		71				107				123				128				127
Equipment lease financing		5				4				2				3				4
Total commercial lending		414				537				554				550				599
Consumer lending (b)
Home equity		821				820				818				814				837
Residential real estate		381				391				400				423				439
Credit card		7				6				6				5				5
Other consumer
Automobile		87				79				76				71				66
Education and other		9				9				11				10				11
Total consumer lending		1,305				1,305				1,311				1,323				1,358
Total nonperforming loans (c)		1,719				1,842				1,865				1,873				1,957
OREO, foreclosed and other assets		135				162				170				194				196
Total nonperforming assets		$	1,854			$	2,004			$	2,035			$	2,067			$	2,153
Nonperforming loans to total loans		.77		%		.83		%		.85		%		.85		%		.90		%
Nonperforming assets to total loans, OREO, foreclosed and other assets		.83		%		.90		%		.92		%		.93		%		.99		%
Nonperforming assets to total assets		.49		%		.53		%		.53		%		.55		%		.58		%
Allowance for loan and lease losses to nonperforming loans		150		%		141		%		140		%		139		%		131		%

(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

		April 1, 2018 -				January 1, 2018 -				October 1, 2017 -				July 1, 2017 -				April 1, 2017 -
In millions		June 30, 2018				March 31, 2018				December 31, 2017				September 30, 2017				June 30, 2017
Beginning balance		$	2,004			$	2,035			$	2,067			$	2,153			$	2,212
New nonperforming assets		276				249				307				303				436
Charge-offs and valuation adjustments		(145		)		(137		)		(141		)		(142		)		(152		)
Principal activity, including paydowns and payoffs		(199		)		(81		)		(87		)		(162		)		(161		)
Asset sales and transfers to loans held for sale		(34		)		(29		)		(40		)		(38		)		(58		)
Returned to performing status		(48		)		(33		)		(71		)		(47		)		(124		)
Ending balance		$	1,854			$	2,004			$	2,035			$	2,067			$	2,153

Table 10: Largest Individual Nonperforming Assets at June 30, 2018 (a)

In millions
Ranking		Outstandings		Industry
1		$38		Wholesale Trade
2		38		Information
3		26		Mining, Quarrying, Oil and Gas Extraction
4		24		Mining, Quarrying, Oil and Gas Extraction
5		21		Manufacturing
6		17		Service Providers
7		12		Real Estate, Rental and Leasing
8		10		Construction
9		8		Manufacturing
10		8		Nonfarm Nonresidential Properties
Total		$202
As a percent of total nonperforming assets				11%

 

(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
		Jun. 30				Mar. 31				Dec. 31				Sept. 30				Jun. 30				Jun. 30			Mar. 31			Dec. 31			Sept. 30			Jun. 30
Dollars in millions		2018				2018				2017				2017				2017				2018			2018			2017			2017			2017
Commercial		$	57			$	53			$	45			$	44			$	42			.05	%		.05	%		.04	%		.04	%		.04	%
Commercial real estate		18				21				27				8				4				.06	%		.07	%		.09	%		.03	%		.01	%
Equipment lease financing		12				18				17				4				2				.16	%		.23	%		.21	%		.05	%		.03	%
Home equity		97				94				78				74				61				.36	%		.34	%		.27	%		.26	%		.21	%
Residential real estate
Non government insured		66				66				90				75				78				.37	%		.38	%		.52	%		.45	%		.49	%
Government insured		63				64				61				60				51				.35	%		.37	%		.35	%		.36	%		.32	%
Credit card		40				40				43				40				34				.69	%		.71	%		.75	%		.74	%		.65	%
Other consumer
Automobile		82				77				79				71				44				.59	%		.58	%		.61	%		.56	%		.35	%
Education and other
Non government insured		18				22				25				30				24				.21	%		.26	%		.28	%		.33	%		.26	%
Government insured		66				72				80				80				93				.78	%		.84	%		.90	%		.88	%		1.00	%
Total		$	519			$	527			$	545			$	486			$	433			.23	%		.24	%		.25	%		.22	%		.20	%

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

		Amount																				Percent of Total Outstandings
		Jun. 30				Mar. 31				Dec. 31				Sept. 30				Jun. 30				Jun. 30			Mar. 31			Dec. 31			Sept. 30			Jun. 30
Dollars in millions		2018				2018				2017				2017				2017				2018			2018			2017			2017			2017
Commercial		$	41			$	22			$	25			$	28			$	26			.04	%		.02	%		.02	%		.03	%		.02	%
Commercial real estate		2				12				2				13				1				.01	%		.04	%		.01	%		.04	%		.00	%
Equipment lease financing		7				1				1				3				4				.10	%		.01	%		.01	%		.04	%		.05	%
Home equity		40				31				26				31				24				.15	%		.11	%		.09	%		.11	%		.08	%
Residential real estate
Non government insured		18				16				21				17				14				.10	%		.09	%		.12	%		.10	%		.09	%
Government insured		48				54				53				54				55				.27	%		.31	%		.31	%		.33	%		.34	%
Credit card		24				26				26				25				20				.41	%		.46	%		.46	%		.47	%		.38	%
Other consumer
Automobile		20				18				20				16				12				.14	%		.14	%		.16	%		.13	%		.10	%
Education and other
Non government insured		11				11				12				15				9				.13	%		.13	%		.14	%		.17	%		.10	%
Government insured		45				43				52				53				54				.53	%		.50	%		.59	%		.59	%		.58	%
Total		$	256			$	234			$	238			$	255			$	219			.11	%		.11	%		.11	%		.12	%		.10	%

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

		Amount																				Percent of Total Outstandings
		Jun. 30				Mar. 31				Dec. 31				Sept. 30				Jun. 30				Jun. 30			Mar. 31			Dec. 31			Sept. 30			Jun. 30
Dollars in millions		2018				2018				2017				2017				2017				2018			2018			2017			2017			2017
Commercial		$	59			$	53			$	39			$	47			$	50			.05	%		.05	%		.04	%		.04	%		.05	%
Commercial real estate																		2																.01	%
Residential real estate
Non government insured		14				13				24				12				11				.08	%		.07	%		.14	%		.07	%		.07	%
Government insured		339				360				462				406				400				1.90	%		2.06	%		2.68	%		2.45	%		2.49	%
Credit card		44				45				45				38				36				.75	%		.80	%		.79	%		.71	%		.69	%
Other consumer
Automobile		7				9				8				5				4				.05	%		.07	%		.06	%		.04	%		.03	%
Education and other
Non government insured		9				12				11				9				8				.11	%		.14	%		.12	%		.10	%		.09	%
Government insured		114				136				148				161				163				1.35	%		1.59	%		1.67	%		1.78	%		1.75	%
Total		$	586			$	628			$	737			$	678			$	674			.26	%		.28	%		.33	%		.31	%		.31	%

(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 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. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, and 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 underwriting, 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, largely within our primary geographic markets.

BlackRock, in which we hold an equity investment, is a leading publicly-traded investment management firm providing a broad range of investment, risk management and technology 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 June 30, 2018, our economic interest in BlackRock was 22%.

Table 14: Period End Employees

	June 30			March 31			December 31			September 30			June 30
	2018			2018			2017			2017			2017
Full-time employees
Retail Banking	29,884			29,903			29,604			29,486			29,463
Other full-time employees	21,498			21,055			20,754			20,637			20,399
Total full-time employees	51,382			50,958			50,358			50,123			49,862
Part-time employees
Retail Banking	2,349			2,337			2,368			2,422			2,554
Other part-time employees	563			189			180			223			540
Total part-time employees	2,912			2,526			2,548			2,645			3,094
Total	54,294			53,484			52,906			52,768			52,956

 

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

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

	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
In millions	2018				2018				2017				2017				2017					2018				2017
Income (loss)
Retail Banking	$	330			$	296			$	(145	)		$	232			$	230				$	626			$	443
Corporate & Institutional Banking	675				584				937				525				518					1,259				1,002
Asset Management Group	49				68				56				47				52					117				99
Other, including BlackRock (c)	302				291				1,243				322				297					593				627
Net income	$	1,356			$	1,239			$	2,091			$	1,126			$	1,097				$	2,595			$	2,171
Revenue
Retail Banking	$	1,955			$	1,853			$	1,535			$	1,819			$	1,784				$	3,808			$	3,508
Corporate & Institutional Banking	1,535				1,429				1,502				1,479				1,478					2,964				2,841
Asset Management Group	294				300				297				292				290					594				579
Other, including BlackRock (c)	540				529				926				535				508					1,069				1,016
Total revenue	$	4,324			$	4,111			$	4,260			$	4,125			$	4,060				$	8,435			$	7,944

 

(a)

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.

(b)

Our business segment results for the 2018 periods presented reflected the change in the statutory federal income tax rate from 35% to 21%, effective as of January 1, 2018, as a result of the new federal tax legislation. Our business segment results for the fourth quarter of 2017 reflect the allocation of the impact of the new tax legislation to our business segments, primarily the revaluation of the net deferred tax positions allocated to the segments. Where certain income tax effects could be reasonably estimated, these were included as provisional amounts as of December 31, 2017. As a result, these provisional amounts could be adjusted during the measurement period, which will end in December 2018. No changes were made to these provisional amounts during the first or second quarters of 2018.

(c)	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																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
Dollars in millions	2018				2018				2017				2017				2017					2018				2017
Income Statement
Net interest income	$	1,277			$	1,218			$	1,190			$	1,176			$	1,139				$	2,495			$	2,260
Noninterest income	678				635				345				643				645					1,313				1,248
Total revenue	1,955				1,853				1,535				1,819				1,784					3,808				3,508
Provision for credit losses	72				69				149				77				50					141				121
Noninterest expense	1,450				1,395				1,391				1,375				1,370					2,845				2,685
Pretax earnings (loss)	433				389				(5		)		367				364					822				702
Income taxes	103				93				140				135				134					196				259
Earnings (loss)	$	330			$	296			$	(145	)		$	232			$	230				$	626			$	443
Average Balance Sheet
Loans held for sale	$	629			$	652			$	819			$	802			$	730				$	640			$	786
Loans
Consumer
Home equity	$	24,177			$	24,608			$	24,933			$	25,173			$	25,413				$	24,391			$	25,506
Automobile	13,642				13,105				12,767				12,484				12,220					13,375				12,185
Education	4,181				4,409				4,567				4,723				4,913					4,294				5,021
Credit cards	5,728				5,619				5,450				5,280				5,137					5,674				5,129
Other	1,771				1,765				1,793				1,787				1,760					1,768				1,757
Total consumer	49,499				49,506				49,510				49,447				49,443					49,502				49,598
Commercial and commercial real estate	10,458				10,527				10,513				10,630				10,925					10,493				10,965
Residential mortgage	13,718				13,420				12,950				12,382				11,918					13,570				11,804
Total loans	$	73,675			$	73,453			$	72,973			$	72,459			$	72,286				$	73,565			$	72,367
Total assets	$	89,021			$	88,734			$	88,883			$	88,642			$	88,671				$	88,879			$	88,559
Deposits
Noninterest-bearing demand	$	30,712			$	29,779			$	30,344			$	30,222			$	29,540				$	30,248			$	29,285
Interest-bearing demand	42,802				41,939				40,954				40,762				41,465					42,373				41,059
Money market	30,799				32,330				33,922				35,671				37,523					31,560				38,416
Savings	46,426				43,838				41,536				39,908				38,358					45,139				36,851
Certificates of deposit	11,816				12,082				12,554				12,962				13,304					11,948				13,518
Total deposits	$	162,555			$	159,968			$	159,310			$	159,525			$	160,190				$	161,268			$	159,129
Performance Ratios
Return on average assets	1.49		%		1.35		%		(.65		)%		1.04		%		1.04		%			1.42		%		1.01		%
Noninterest income to total revenue	35		%		34		%		22		%		35		%		36		%			34		%		36		%
Efficiency	74		%		75		%		91		%		76		%		77		%			75		%		77		%

 

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Retail Banking (Unaudited) (Continued)

	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
Dollars in millions, except as noted	2018				2018				2017				2017				2017					2018				2017
Supplemental Noninterest Income Information
Consumer services	$	287			$	266			$	279			$	273			$	277				$	553			$	527
Brokerage	$	88			$	86			$	81			$	77			$	78				$	174			$	154
Residential mortgage	$	84			$	97			$	29			$	104			$	104				$	181			$	217
Service charges on deposits	$	164			$	160			$	177			$	174			$	163				$	324			$	317
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	124			$	125			$	127			$	129			$	131
Serviced portfolio acquisitions	$	3			$	1			$	1			$	2			$	8				$	4			$	16
MSR asset value (b)	$	1.3			$	1.3			$	1.2			$	1.2			$	1.2
MSR capitalization value (in basis points) (b)	104				101				92				95				95
Servicing income: (in millions)
Servicing fees, net (c)	$	39			$	51			$	45			$	46			$	44				$	90			$	96
Mortgage servicing rights valuation, net of economic hedge	$	13			$	9			$	(60	)		$	7			$	11				$	22			$	23
Residential mortgage loan statistics
Loan origination volume (in billions)	$	2.0			$	1.7			$	2.4			$	2.5			$	2.2				$	3.7			$	4.1
Loan sale margin percentage	2.21		%		2.83		%		2.71		%		2.80		%		2.74		%			2.49		%		2.84		%
Percentage of originations represented by:
Purchase volume (d)	71		%		56		%		50		%		57		%		61		%			65		%		53		%
Refinance volume	29		%		44		%		50		%		43		%		39		%			35		%		47		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	54		%		54		%		54		%		54		%		52		%			54		%		52		%
Digital consumer customers (f)	65		%		64		%		63		%		62		%		62		%			65		%		61		%
Credit-related statistics
Nonperforming assets	$	1,141			$	1,131			$	1,129			$	1,126			$	1,149
Net charge-offs	$	112			$	100			$	99			$	85			$	87				$	212			$	187
Other statistics
ATMs	9,043				9,047				9,051				8,987				8,972
Branches (g)	2,404				2,442				2,459				2,474				2,481
Brokerage account client assets (in billions) (h)	$	49			$	49			$	49			$	48			$	46

(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 six months 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)	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																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
Dollars in millions	2018				2018				2017				2017				2017					2018				2017
Income Statement
Net interest income	$	900			$	882			$	898			$	924			$	890				$	1,782			$	1,729
Noninterest income	635				547				604				555				588					1,182				1,112
Total revenue	1,535				1,429				1,502				1,479				1,478					2,964				2,841
Provision for credit losses (benefit)	15				41				(14		)		62				87					56				112
Noninterest expense	639				626				643				599				602					1,265				1,186
Pretax earnings	881				762				873				818				789					1,643				1,543
Income taxes (benefit)	206				178				(64		)		293				271					384				541
Earnings	$	675			$	584			$	937			$	525			$	518				$	1,259			$	1,002
Average Balance Sheet
Loans held for sale	$	594			$	1,189			$	845			$	917			$	716				$	890			$	915
Loans
Commercial	$	102,722			$	100,802			$	100,726			$	98,794			$	96,012				$	101,767			$	94,067
Commercial real estate	26,715				26,732				27,259				27,559				27,575					26,723				27,334
Equipment lease financing	7,495				7,845				7,670				7,704				7,602					7,669				7,550
Total commercial lending	136,932				135,379				135,655				134,057				131,189					136,159				128,951
Consumer	39				77				107				222				278					58				304
Total loans	$	136,971			$	135,456			$	135,762			$	134,279			$	131,467				$	136,217			$	129,255
Total assets	$	153,619			$	151,909			$	151,721			$	150,948			$	148,267				$	152,769			$	145,445
Deposits
Noninterest-bearing demand	$	44,383			$	45,896			$	48,116			$	47,180			$	46,327				$	45,136			$	46,872
Money market	22,832				23,406				23,992				23,413				21,321					23,118				21,204
Other	18,589				18,592				17,247				16,879				16,016					18,590				15,706
Total deposits	$	85,804			$	87,894			$	89,355			$	87,472			$	83,664				$	86,844			$	83,782
Performance Ratios
Return on average assets	1.76		%		1.56		%		2.45		%		1.38		%		1.40		%			1.66		%		1.39		%
Noninterest income to total revenue	41		%		38		%		40		%		38		%		40		%			40		%		39		%
Efficiency	42		%		44		%		43		%		41		%		41		%			43		%		42		%
Other Information
Consolidated revenue from: (b)
Treasury Management (c)	$	446			$	419			$	401			$	384			$	372				$	865			$	731
Capital Markets (c)	$	283			$	258			$	271			$	231			$	268				$	541			$	515
Commercial mortgage banking activities
Commercial mortgage loans held for sale (d)	$	38			$	14			$	42			$	22			$	38				$	52			$	51
Commercial mortgage loan servicing income (e)	60				55				59				56				55					115				113
Commercial mortgage servicing rights valuation, net of economic hedge (f)	20				4				13				6				19					24				35
Total	$	118			$	73			$	114			$	84			$	112				$	191			$	199
MSR asset value (g)	$	748			$	723			$	668			$	628			$	618
Average Loans by C&IB business
Corporate Banking	$	58,523			$	57,856			$	57,064			$	56,867			$	54,937				$	58,191			$	54,416
Real Estate	37,419				37,252				38,949				38,516				38,318					37,336				37,730
Business Credit	17,336				16,818				16,612				16,097				15,645					17,078				15,244
Equipment Finance	14,352				14,243				13,912				13,744				13,481					14,298				12,982
Commercial Banking	7,065				7,066				6,957				7,042				7,124					7,065				7,057
Other	2,276				2,221				2,268				2,013				1,962					2,250				1,826
Total average loans	$	136,971			$	135,456			$	135,762			$	134,279			$	131,467				$	136,218			$	129,255
Credit-related statistics
Nonperforming assets (g)	$	385			$	508			$	531			$	549			$	586
Net charge-offs	$	(2	)		$	9			$	29			$	22			$	21				$	7			$	42

 

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

(b)	Represents consolidated amounts.

(c)	Includes amounts reported in net interest income and noninterest income.

(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 amortization expense 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																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
Dollars in millions, except as noted	2018				2018				2017				2017				2017					2018				2017
Income Statement
Net interest income	$	72			$	74			$	71			$	72			$	73				$	146			$	144
Noninterest income	222				226				226				220				217					448				435
Total revenue	294				300				297				292				290					594				579
Provision for credit losses (benefit)	7				(7		)		7				3				(7		)			—				(9		)
Noninterest expense	223				218				217				214				215					441				432
Pretax earnings	64				89				73				75				82					153				156
Income taxes	15				21				17				28				30					36				57
Earnings	$	49			$	68			$	56			$	47			$	52				$	117			$	99
Average Balance Sheet
Loans
Consumer	$	4,698			$	4,785			$	4,894			$	4,977			$	5,089				$	4,741			$	5,101
Commercial and commercial real estate	742				733				745				680				700					738				719
Residential mortgage	1,561				1,517				1,433				1,330				1,246					1,539				1,218
Total loans	$	7,001			$	7,035			$	7,072			$	6,987			$	7,035				$	7,018			$	7,038
Total assets	$	7,469			$	7,499			$	7,545			$	7,464			$	7,516				$	7,484			$	7,517
Deposits
Noninterest-bearing demand	$	1,459			$	1,466			$	1,609			$	1,464			$	1,468				$	1,462			$	1,519
Interest-bearing demand	3,448				3,540				3,517				3,469				3,704					3,494				3,766
Money market	2,332				2,577				2,863				3,058				3,219					2,454				3,358
Savings	4,690				4,613				4,282				3,961				3,770					4,651				3,769
Other	382				305				288				237				230					345				239
Total deposits	$	12,311			$	12,501			$	12,559			$	12,189			$	12,391				$	12,406			$	12,651
Performance Ratios
Return on average assets	2.63		%		3.68		%		2.94		%		2.50		%		2.78		%			3.15		%		2.66		%
Noninterest income to total revenue	76		%		75		%		76		%		75		%		75		%			75		%		75		%
Efficiency	76		%		73		%		73		%		73		%		74		%			74		%		75		%
Other Information
Nonperforming assets (b)	$	51			$	52			$	49			$	45			$	49
Net charge-offs	$	1			$	6			$	(1	)		$	3			$	1				$	7			$	2
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management	$	149			$	148			$	151			$	146			$	141
Nondiscretionary client assets under administration	130				129				131				129				125
Total	$	279			$	277			$	282			$	275			$	266
Discretionary client assets under management
Personal	$	92			$	92			$	94			$	90			$	89
Institutional	57				56				57				56				52
Total	$	149			$	148			$	151			$	146			$	141

 

(a)	See notes (a) and (b) 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 those transferred from available for sale and pension and other postretirement benefit plans, subject to phase-in limits, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments. Significant common stock investments in unconsolidated financial institutions, as well as mortgage servicing rights and deferred tax assets, must then be deducted to the extent such items individually exceed 10%, or in the aggregate exceed 15%, of our adjusted Basel III common equity Tier 1 capital.

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.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

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.

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 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).

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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.

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 that is completely or partially exempt from federal income tax. 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.

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.