Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2018

(Unaudited)

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THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD 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 October 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. 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 Third 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	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																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions, except per share data	2018				2018				2018				2017				2017					2018				2017
Interest Income
Loans	$	2,452			$	2,345			$	2,228			$	2,154			$	2,140				$	7,025			$	6,084
Investment securities	584				557				512				509				501					1,653				1,489
Other	187				180				178				162				154					545				416
Total interest income	3,223				3,082				2,918				2,825				2,795					9,223				7,989
Interest Expense
Deposits	336				261				213				190				170					810				433
Borrowed funds	421				408				344				290				280					1,173				793
Total interest expense	757				669				557				480				450					1,983				1,226
Net interest income	2,466				2,413				2,361				2,345				2,345					7,240				6,763
Noninterest Income
Asset management	486				456				455				720				421					1,397				1,222
Consumer services	377				381				357				366				357					1,115				1,049
Corporate services (a)	465				487				429				458				404					1,381				1,284
Residential mortgage	76				84				97				29				104					257				321
Service charges on deposits	186				169				167				183				181					522				512
Other (a) (b)	301				334				245				159				313					880				918
Total noninterest income	1,891				1,911				1,750				1,915				1,780					5,552				5,306
Total revenue	4,357				4,324				4,111				4,260				4,125					12,792				12,069
Provision For Credit Losses	88				80				92				125				130					260				316
Noninterest Expense
Personnel	1,413				1,356				1,354				1,449				1,286					4,123				3,819
Occupancy	195				203				218				240				204					616				628
Equipment	264				281				273				274				259					818				791
Marketing	71				75				55				60				62					201				184
Other	665				669				627				1,038				645					1,961				1,915
Total noninterest expense	2,608				2,584				2,527				3,061				2,456					7,719				7,337
Income before income taxes (benefit) and noncontrolling interests	1,661				1,660				1,492				1,074				1,539					4,813				4,416
Income taxes (benefit)	261				304				253				(1,017		)		413					818				1,119
Net income	1,400				1,356				1,239				2,091				1,126					3,995				3,297
Less: Net income attributable to noncontrolling interests	11				10				10				11				12					31				39
Preferred stock dividends (c)	63				55				63				55				63					181				181
Preferred stock discount accretion and redemptions	1				1				1				2				1					3				24
Net income attributable to common shareholders	$	1,325			$	1,290			$	1,165			$	2,023			$	1,050				$	3,780			$	3,053
Earnings Per Common Share
Basic	$	2.84			$	2.74			$	2.45			$	4.23			$	2.18				$	8.03			$	6.29
Diluted	$	2.82			$	2.72			$	2.43			$	4.18			$	2.16				$	7.96			$	6.21
Average Common Shares Outstanding
Basic	465				469				473				476				479					469				483
Diluted	467				472				476				480				483					472				488
Efficiency	60		%		60		%		61		%		72		%		60		%			60		%		61		%
Noninterest income to total revenue	43		%		44		%		43		%		45		%		43		%			43		%		44		%
Effective tax rate (d)	15.7		%		18.3		%		17.0		%		(94.7		)%		26.8		%			17.0		%		25.3		%

(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 and $34 million for the three months ended December 31, 2017 and September 30, 2017, respectively, and $86 million for the nine months ended September 30, 2017.

(b)	Includes net gains (losses) on sales of securities of $(1) million, $(3) million, $(1) million, $(3) million, and $(1) million for the quarters ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively, and $(5) million and $10 million for the nine months ended September 30, 2018 and September 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 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 nine months of 2018.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

	September 30				June 30				March 31				December 31				September 30
In millions, except par value	2018				2018				2018				2017				2017
Assets
Cash and due from banks	$	5,248			$	5,425			$	4,649			$	5,249			$	4,736
Interest-earning deposits with banks (a)	19,800				21,972				28,821				28,595				24,713
Loans held for sale (b)	1,108				1,325				965				2,655				1,764
Investment securities – available for sale	61,211				60,275				56,018				57,618				57,254
Investment securities – held to maturity	19,593				19,850				18,544				18,513				17,740
Loans (b)	223,053				222,855				221,614				220,458				221,109
Allowance for loan and lease losses	(2,584		)		(2,581		)		(2,604		)		(2,611		)		(2,605		)
Net loans	220,469				220,274				219,010				217,847				218,504
Equity investments (c)	12,446				12,430				12,008				11,392				11,009
Mortgage servicing rights	2,136				2,045				1,979				1,832				1,854
Goodwill	9,218				9,218				9,218				9,173				9,163
Other (b)	28,851				27,897				27,949				27,894				28,454
Total assets	$	380,080			$	380,711			$	379,161			$	380,768			$	375,191
Liabilities
Deposits
Noninterest-bearing	$	74,736			$	79,047			$	78,303			$	79,864			$	79,967
Interest-bearing	190,148				185,838				186,401				185,189				180,768
Total deposits	264,884				264,885				264,704				265,053				260,735
Borrowed funds
Federal Home Loan Bank borrowings	20,036				22,036				19,537				21,037				20,538
Bank notes and senior debt	26,676				27,596				28,773				28,062				26,467
Subordinated debt	5,764				4,781				5,121				5,200				5,601
Other (b)	5,479				4,809				4,608				4,789				4,958
Total borrowed funds	57,955				59,222				58,039				59,088				57,564
Allowance for unfunded loan commitments and letters of credit	288				289				290				297				293
Accrued expenses and other liabilities	9,851				9,340				9,093				8,745				10,147
Total liabilities	332,978				333,736				332,126				333,183				328,739
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	16,299				16,250				16,227				16,374				16,343
Retained earnings	38,080				37,201				36,266				35,481				33,819
Accumulated other comprehensive income (loss)	(1,260		)		(940		)		(699		)		(148		)		(22		)
Common stock held in treasury at cost: 80, 77, 72, 69 and 66 shares	(8,771		)		(8,317		)		(7,535		)		(6,904		)		(6,462		)
Total shareholders’ equity	47,058				46,904				46,969				47,513				46,388
Noncontrolling interests	44				71				66				72				64
Total equity	47,102				46,975				47,035				47,585				46,452
Total liabilities and equity	$	380,080			$	380,711			$	379,161			$	380,768			$	375,191

 

(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $19.6 billion, $21.6 billion, $28.6 billion, $28.3 billion and $24.3 billion as of September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2018 Form 10-Q included, and our third 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																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions	2018				2018				2018				2017				2017					2018				2017
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	28,241			$	26,527			$	25,438			$	25,338			$	25,493				$	26,746			$	25,910
Non-agency	2,128				2,271				2,398				2,577				2,758					2,265				2,943
Commercial mortgage-backed	4,366				4,449				4,534				4,542				4,838					4,449				5,413
Asset-backed	5,459				5,161				5,158				5,330				5,546					5,260				5,799
U.S. Treasury and government agencies	16,757				15,719				14,307				13,646				13,081					15,603				13,021
Other	3,996				4,112				4,233				4,940				5,011					4,113				5,131
Total securities available for sale	60,947				58,239				56,068				56,373				56,727					58,436				58,217
Securities held to maturity
Residential mortgage-backed	16,292				15,608				14,818				13,976				13,549					15,578				12,736
Commercial mortgage-backed	715				807				902				963				1,211					807				1,353
Asset-backed	189				194				199				220				358					194				468
U.S. Treasury and government agencies	752				747				743				739				561					747				541
Other	1,871				1,884				1,926				1,974				2,000					1,894				2,015
Total securities held to maturity	19,819				19,240				18,588				17,872				17,679					19,220				17,113
Total investment securities	80,766				77,479				74,656				74,245				74,406					77,656				75,330
Loans
Commercial	113,883				113,349				111,462				111,365				109,503					112,907				106,534
Commercial real estate	28,860				28,888				28,901				29,432				29,676					28,883				29,505
Equipment lease financing	7,202				7,494				7,845				7,670				7,704					7,512				7,602
Consumer	55,449				55,387				55,588				55,814				56,062					55,474				56,413
Residential real estate	17,948				17,566				17,308				16,840				16,273					17,609				15,920
Total loans	223,342				222,684				221,104				221,121				219,218					222,385				215,974
Interest-earning deposits with banks (b)	19,151				21,017				25,667				25,567				23,859					21,921				23,530
Other interest-earning assets	7,114				6,905				7,904				8,759				9,024					7,305				9,058
Total interest-earning assets	330,373				328,085				329,331				329,692				326,507					329,267				323,892
Noninterest-earning assets	47,504				47,542				46,944				47,136				46,890					47,332				46,172
Total assets	$	377,877			$	375,627			$	376,275			$	376,828			$	373,397				$	376,599			$	370,064
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	55,507			$	56,199			$	58,523			$	60,954			$	62,325				$	56,732			$	62,795
Demand	60,138				60,409				59,620				57,128				56,743					60,058				57,017
Savings	52,919				51,115				48,451				45,817				43,869					50,845				41,715
Time deposits	17,756				16,634				16,844				17,438				17,571					17,081				17,283
Total interest-bearing deposits	186,320				184,357				183,438				181,337				180,508					184,716				178,810
Borrowed funds
Federal Home Loan Bank borrowings	21,516				20,956				20,721				19,565				19,190					21,067				19,999
Bank notes and senior debt	27,301				28,787				28,987				27,778				26,602					28,352				24,817
Subordinated debt	5,253				4,855				5,179				5,433				5,970					5,096				6,556
Other	5,768				4,368				4,751				5,261				5,254					4,966				5,130
Total borrowed funds	59,838				58,966				59,638				58,037				57,016					59,481				56,502
Total interest-bearing liabilities	246,158				243,323				243,076				239,374				237,524					244,197				235,312
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	76,155				76,632				77,222				80,152				78,931					76,666				78,122
Accrued expenses and other liabilities	8,853				8,944				9,118				10,801				10,749					8,971				10,423
Equity	46,711				46,728				46,859				46,501				46,193					46,765				46,207
Total liabilities and equity	$	377,877			$	375,627			$	376,275			$	376,828			$	373,397				$	376,599			$	370,064

(a)	Calculated using average daily balances.

(b)

Amounts include average balances held with the Federal Reserve Bank of Cleveland of $18.8 billion, $20.7 billion, $25.4 billion, $25.3 billion and $23.4 billion for the three months ended September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017, respectively, and $21.6 billion and $23.1 billion for the nine months ended September 30, 2018 and September 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																Nine months ended
	September 30			June 30			March 31			December 31			September 30				September 30			September 30
	2018			2018			2018			2017			2017				2018			2017
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.76	%		2.68	%		2.60	%		2.58	%		2.61	%			2.68	%		2.57	%
Non-agency	7.18	%		6.52	%		5.99	%		4.29	%		5.91	%			6.54	%		5.69	%
Commercial mortgage-backed	2.72	%		2.76	%		2.75	%		4.68	%		2.71	%			2.75	%		2.53	%
Asset-backed	3.37	%		3.11	%		2.87	%		2.82	%		2.53	%			3.12	%		2.51	%
U.S. Treasury and government agencies	2.25	%		2.25	%		2.07	%		1.79	%		1.83	%			2.20	%		1.76	%
Other	3.28	%		4.06	%		3.17	%		3.32	%		3.08	%			3.50	%		3.03	%
Total securities available for sale	2.86	%		2.85	%		2.69	%		2.73	%		2.63	%			2.80	%		2.57	%
Securities held to maturity
Residential mortgage-backed	2.92	%		2.89	%		2.84	%		2.74	%		2.81	%			2.88	%		2.80	%
Commercial mortgage-backed	3.71	%		3.71	%		3.76	%		4.11	%		4.42	%			3.73	%		4.05	%
Asset-backed	3.65	%		3.48	%		2.90	%		2.66	%		2.53	%			3.34	%		2.34	%
U.S. Treasury and government agencies	2.85	%		2.83	%		2.80	%		2.85	%		3.07	%			2.83	%		3.08	%
Other	4.42	%		4.39	%		4.44	%		5.28	%		5.30	%			4.42	%		5.31	%
Total securities held to maturity	3.10	%		3.07	%		3.05	%		3.10	%		3.20	%			3.07	%		3.19	%
Total investment securities	2.92	%		2.91	%		2.78	%		2.82	%		2.77	%			2.87	%		2.71	%
Loans
Commercial	4.06	%		3.97	%		3.74	%		3.59	%		3.54	%			3.93	%		3.41	%
Commercial real estate	4.10	%		4.04	%		3.81	%		3.68	%		3.65	%			3.98	%		3.47	%
Equipment lease financing	3.78	%		3.16	%		3.68	%		2.33	%		3.71	%			3.54	%		3.56	%
Consumer	5.17	%		4.96	%		4.87	%		4.72	%		4.67	%			5.00	%		4.55	%
Residential real estate	4.45	%		4.36	%		4.40	%		4.41	%		4.45	%			4.40	%		4.52	%
Total loans	4.36	%		4.23	%		4.09	%		3.91	%		3.92	%			4.23	%		3.81	%
Interest-earning deposits with banks	1.97	%		1.78	%		1.52	%		1.33	%		1.26	%			1.74	%		1.03	%
Other interest-earning assets	5.19	%		4.98	%		4.11	%		3.55	%		3.47	%			4.74	%		3.46	%
Total yield on interest-earning assets	3.89	%		3.78	%		3.59	%		3.45	%		3.45	%			3.75	%		3.34	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	.80	%		.64	%		.54	%		.45	%		.41	%			.66	%		.32	%
Demand	.32	%		.25	%		.21	%		.17	%		.14	%			.26	%		.12	%
Savings	.92	%		.74	%		.57	%		.51	%		.45	%			.75	%		.44	%
Time deposits	1.18	%		.98	%		.88	%		.85	%		.79	%			1.02	%		.74	%
Total interest-bearing deposits	.71	%		.57	%		.47	%		.42	%		.37	%			.59	%		.32	%
Borrowed funds
Federal Home Loan Bank borrowings	2.42	%		2.23	%		1.76	%		1.48	%		1.37	%			2.14	%		1.23	%
Bank notes and senior debt	2.92	%		2.95	%		2.43	%		2.04	%		2.05	%			2.76	%		1.98	%
Subordinated debt	4.10	%		4.50	%		3.91	%		3.49	%		3.48	%			4.16	%		3.54	%
Other	2.11	%		1.82	%		2.18	%		1.74	%		1.60	%			2.04	%		1.56	%
Total borrowed funds	2.76	%		2.74	%		2.31	%		1.96	%		1.93	%			2.60	%		1.86	%
Total rate on interest-bearing liabilities	1.21	%		1.10	%		.91	%		.79	%		.75	%			1.08	%		.69	%
Interest rate spread	2.68	%		2.68	%		2.68	%		2.66	%		2.70	%			2.67	%		2.65	%
Impact of noninterest-bearing sources (b)	.31			.28			.23			.22			.21				.28			.19
Net interest margin	2.99	%		2.96	%		2.91	%		2.88	%		2.91	%			2.95	%		2.84	%

(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 September 30, 2018, June 30, 2018, March 31, 2018, December 31, 2017 and September 30, 2017 were $29 million, $29 million, $29 million, $54 million and $55 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2018 and September 30, 2017 were $87 million and $161 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																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions, except per share data	2018				2018				2018				2017				2017					2018				2017
Basic
Net income	$	1,400			$	1,356			$	1,239			$	2,091			$	1,126				$	3,995			$	3,297
Less:
Net income attributable to noncontrolling interests	11				10				10				11				12					31				39
Preferred stock dividends (a)	63				55				63				55				63					181				181
Preferred stock discount accretion and redemptions	1				1				1				2				1					3				24
Net income attributable to common shareholders	1,325				1,290				1,165				2,023				1,050					3,780				3,053
Less:
Dividends and undistributed earnings allocated to nonvested restricted shares	6				5				5				8				5					16				15
Net income attributable to basic common shares	$	1,319			$	1,285			$	1,160			$	2,015			$	1,045				$	3,764			$	3,038
Basic weighted-average common shares outstanding	465				469				473				476				479					469				483
Basic earnings per common share	$	2.84			$	2.74			$	2.45			$	4.23			$	2.18				$	8.03			$	6.29
Diluted
Net income attributable to basic common shares	$	1,319			$	1,285			$	1,160			$	2,015			$	1,045				$	3,764			$	3,038
Less: Impact of BlackRock earnings per share dilution	2				3				2				8				3					7				8
Net income attributable to diluted common shares	$	1,317			$	1,282			$	1,158			$	2,007			$	1,042				$	3,757			$	3,030
Basic weighted-average common shares outstanding	465				469				473				476				479					469				483
Dilutive potential common shares	2				3				3				4				4					3				5
Diluted weighted-average common shares outstanding	467				472				476				480				483					472				488
Diluted earnings per common share	$	2.82			$	2.72			$	2.43			$	4.18			$	2.16				$	7.96			$	6.21

(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)

		September 30				June 30				March 31				December 31				September 30
In millions		2018				2018				2018				2017				2017
Commercial lending
Commercial
Manufacturing		$	21,272			$	21,667			$	21,367			$	20,578			$	20,658
Retail/wholesale trade		19,689				19,299				18,232				17,846				18,256
Service providers		14,386				14,343				14,554				15,100				15,014
Real estate related (a)		12,539				12,688				12,701				12,496				12,174
Health care		9,217				9,564				9,937				9,739				9,659
Financial services		9,441				9,241				9,479				8,532				10,968
Transportation and warehousing		5,715				5,531				5,488				5,609				5,597
Other industries		21,412				21,034				20,550				20,627				18,991
Total commercial		113,671				113,367				112,308				110,527				111,317
Commercial real estate		28,563				28,946				28,835				28,978				29,516
Equipment lease financing		7,214				7,323				7,802				7,934				7,694
Total commercial lending		149,448				149,636				148,945				147,439				148,527
Consumer lending
Home equity		26,628				27,219				27,699				28,364				28,811
Residential real estate		18,203				17,805				17,456				17,212				16,601
Credit card		5,979				5,830				5,657				5,699				5,375
Other consumer
Automobile		14,309				13,892				13,295				12,880				12,743
Education		3,954				4,057				4,228				4,454				4,620
Other		4,532				4,416				4,334				4,410				4,432
Total consumer lending		73,605				73,219				72,669				73,019				72,582
Total loans		$	223,053			$	222,855			$	221,614			$	220,458			$	221,109

(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

		September 30				June 30				March 31				December 31				September 30
Three months ended - in millions		2018				2018				2018				2017				2017
Beginning balance		$	2,581			$	2,604			$	2,611			$	2,605			$	2,561
Gross charge-offs:
Commercial		(26		)		(24		)		(28		)		(46		)		(39		)
Commercial real estate						(2		)		(6		)		(15		)		(6		)
Equipment lease financing		(2		)		(2		)		(2		)		(5		)		(4		)
Home equity		(24		)		(33		)		(28		)		(25		)		(26		)
Residential real estate		(3		)		(4		)		(2		)		(1		)		(4		)
Credit card		(52		)		(53		)		(56		)		(46		)		(44		)
Other consumer
Automobile		(40		)		(39		)		(38		)		(37		)		(31		)
Education		(7		)		(8		)		(9		)		(11		)		(7		)
Other		(24		)		(28		)		(24		)		(23		)		(24		)
Total gross charge-offs		(178		)		(193		)		(193		)		(209		)		(185		)
Recoveries:
Commercial		18				16				16				20				17
Commercial real estate		4				8				6				7				6
Equipment lease financing		1				1				4				3				2
Home equity		23				23				21				24				24
Residential real estate		8				6				4				6				4
Credit card		6				6				6				5				5
Other consumer
Automobile		21				18				17				15				15
Education		2				2				2				2				2
Other		4				4				4				4				4
Total recoveries		87				84				80				86				79
Net (charge-offs) / recoveries:
Commercial		(8		)		(8		)		(12		)		(26		)		(22		)
Commercial real estate		4				6								(8		)
Equipment lease financing		(1		)		(1		)		2				(2		)		(2		)
Home equity		(1		)		(10		)		(7		)		(1		)		(2		)
Residential real estate		5				2				2				5
Credit card		(46		)		(47		)		(50		)		(41		)		(39		)
Other consumer
Automobile		(19		)		(21		)		(21		)		(22		)		(16		)
Education		(5		)		(6		)		(7		)		(9		)		(5		)
Other		(20		)		(24		)		(20		)		(19		)		(20		)
Total net (charge-offs)		(91		)		(109		)		(113		)		(123		)		(106		)
Provision for credit losses		88				80				92				125				130
Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit		1				1				7				(4		)		11
Other		5				5				7				8				9
Ending balance		$	2,584			$	2,581			$	2,604			$	2,611			$	2,605
Supplemental Information
Net charge-offs to average loans (annualized)		.16		%		.20		%		.21		%		.22		%		.19		%
Allowance for loan and lease losses to total loans		1.16		%		1.16		%		1.18		%		1.18		%		1.18		%
Commercial lending net charge-offs		$	(5	)		$	(3	)		$	(10	)		$	(36	)		$	(24	)
Consumer lending net charge-offs		(86		)		(106		)		(103		)		(87		)		(82		)
Total net charge-offs		$	(91	)		$	(109	)		$	(113	)		$	(123	)		$	(106	)
Net charge-offs to average loans (annualized)
Commercial lending		.01		%		.01		%		.03		%		.10		%		.06		%
Consumer lending		.46		%		.58		%		.57		%		.48		%		.45		%

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type

		September 30				June 30				March 31				December 31				September 30
In millions		2018				2018				2018				2017				2017
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade		$	47			$	65			$	126			$	115			$	76
Manufacturing		43				49				67				55				63
Service providers		53				48				36				35				48
Real estate related (a)		18				22				25				33				37
Health care		14				15				13				15				23
Transportation and warehousing		7				3				3				27				15
Other industries		138				136				156				149				157
Total commercial		320				338				426				429				419
Commercial real estate		68				71				107				123				128
Equipment lease financing		5				5				4				2				3
Total commercial lending		393				414				537				554				550
Consumer lending (b)
Home equity		828				821				820				818				814
Residential real estate		363				381				391				400				423
Credit card		6				7				6				6				5
Other consumer
Automobile		95				87				79				76				71
Education and other		9				9				9				11				10
Total consumer lending		1,301				1,305				1,305				1,311				1,323
Total nonperforming loans (c)		1,694				1,719				1,842				1,865				1,873
OREO, foreclosed and other assets		131				135				162				170				194
Total nonperforming assets		$	1,825			$	1,854			$	2,004			$	2,035			$	2,067
Nonperforming loans to total loans		.76		%		.77		%		.83		%		.85		%		.85		%
Nonperforming assets to total loans, OREO, foreclosed and other assets		.82		%		.83		%		.90		%		.92		%		.93		%
Nonperforming assets to total assets		.48		%		.49		%		.53		%		.53		%		.55		%
Allowance for loan and lease losses to nonperforming loans		153		%		150		%		141		%		140		%		139		%

(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

		July 1, 2018 -				April 1, 2018 -				January 1, 2018 -				October 1, 2017 -				July 1, 2017 -
In millions		September 30, 2018				June 30, 2018				March 31, 2018				December 31, 2017				September 30, 2017
Beginning balance		$	1,854			$	2,004			$	2,035			$	2,067			$	2,153
New nonperforming assets		260				276				249				307				303
Charge-offs and valuation adjustments		(126		)		(145		)		(137		)		(141		)		(142		)
Principal activity, including paydowns and payoffs		(99		)		(199		)		(81		)		(87		)		(162		)
Asset sales and transfers to loans held for sale		(38		)		(34		)		(29		)		(40		)		(38		)
Returned to performing status		(26		)		(48		)		(33		)		(71		)		(47		)
Ending balance		$	1,825			$	1,854			$	2,004			$	2,035			$	2,067

Table 10: Largest Individual Nonperforming Assets (a)

September 30, 2018 - In millions
Ranking		Outstandings		Industry
1		$37		Information
2		25		Mining, Quarrying, and Oil and Gas Extraction
3		24		Wholesale Trade
4		23		Mining, Quarrying, and Oil and Gas Extraction
5		20		Manufacturing
6		17		Service Providers
7		12		Real Estate and Rental and Leasing
8		10		Mining, Quarrying, and Oil and Gas Extraction
9		10		Construction, Land Development And Other Land
10		8		Nonfarm Nonresidential Properties
Total		$186
As a percent of total nonperforming assets				10%

 

(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
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2018				2018				2018				2017				2017				2018			2018			2018			2017			2017
Commercial		$	60			$	57			$	53			$	45			$	44			.05	%		.05	%		.05	%		.04	%		.04	%
Commercial real estate		8				18				21				27				8				.03	%		.06	%		.07	%		.09	%		.03	%
Equipment lease financing		29				12				18				17				4				.40	%		.16	%		.23	%		.21	%		.05	%
Home equity		77				97				94				78				74				.29	%		.36	%		.34	%		.27	%		.26	%
Residential real estate
Non government insured		70				66				66				90				75				.38	%		.37	%		.38	%		.52	%		.45	%
Government insured		60				63				64				61				60				.33	%		.35	%		.37	%		.35	%		.36	%
Credit card		45				40				40				43				40				.75	%		.69	%		.71	%		.75	%		.74	%
Other consumer
Automobile		104				82				77				79				71				.73	%		.59	%		.58	%		.61	%		.56	%
Education and other
Non government insured		27				18				22				25				30				.32	%		.21	%		.26	%		.28	%		.33	%
Government insured		71				66				72				80				80				.84	%		.78	%		.84	%		.90	%		.88	%
Total		$	551			$	519			$	527			$	545			$	486			.25	%		.23	%		.24	%		.25	%		.22	%

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

		Amount																				Percent of Total Outstandings
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2018				2018				2018				2017				2017				2018			2018			2018			2017			2017
Commercial		$	35			$	41			$	22			$	25			$	28			.03	%		.04	%		.02	%		.02	%		.03	%
Commercial real estate		3				2				12				2				13				.01	%		.01	%		.04	%		.01	%		.04	%
Equipment lease financing		16				7				1				1				3				.22	%		.10	%		.01	%		.01	%		.04	%
Home equity		30				40				31				26				31				.11	%		.15	%		.11	%		.09	%		.11	%
Residential real estate
Non government insured		16				18				16				21				17				.09	%		.10	%		.09	%		.12	%		.10	%
Government insured		51				48				54				53				54				.28	%		.27	%		.31	%		.31	%		.33	%
Credit card		28				24				26				26				25				.47	%		.41	%		.46	%		.46	%		.47	%
Other consumer
Automobile		25				20				18				20				16				.17	%		.14	%		.14	%		.16	%		.13	%
Education and other
Non government insured		12				11				11				12				15				.14	%		.13	%		.13	%		.14	%		.17	%
Government insured		42				45				43				52				53				.49	%		.53	%		.50	%		.59	%		.59	%
Total		$	258			$	256			$	234			$	238			$	255			.12	%		.11	%		.11	%		.11	%		.12	%

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

		Amount																				Percent of Total Outstandings
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2018				2018				2018				2017				2017				2018			2018			2018			2017			2017
Commercial		$	67			$	59			$	53			$	39			$	47			.06	%		.05	%		.05	%		.04	%		.04	%
Commercial real estate
Residential real estate
Non government insured		15				14				13				24				12				.08	%		.08	%		.07	%		.14	%		.07	%
Government insured		342				339				360				462				406				1.88	%		1.90	%		2.06	%		2.68	%		2.45	%
Credit card		48				44				45				45				38				.80	%		.75	%		.80	%		.79	%		.71	%
Other consumer
Automobile		8				7				9				8				5				.06	%		.05	%		.07	%		.06	%		.04	%
Education and other
Non government insured		10				9				12				11				9				.12	%		.11	%		.14	%		.12	%		.10	%
Government insured		129				114				136				148				161				1.52	%		1.35	%		1.59	%		1.67	%		1.78	%
Total		$	619			$	586			$	628			$	737			$	678			.28	%		.26	%		.28	%		.33	%		.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 September 30, 2018, our economic interest in BlackRock was 22%.

Table 14: Period End Employees

	September 30			June 30			March 31			December 31			September 30
	2018			2018			2018			2017			2017
Full-time employees
Retail Banking	29,296			29,884			29,903			29,604			29,486
Other full-time employees	21,768			21,498			21,055			20,754			20,637
Total full-time employees	51,064			51,382			50,958			50,358			50,123
Part-time employees
Retail Banking	2,071			2,349			2,337			2,368			2,422
Other part-time employees	187			563			189			180			223
Total part-time employees	2,258			2,912			2,526			2,548			2,645
Total	53,322			54,294			53,484			52,906			52,768

 

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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																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions	2018				2018				2018				2017				2017					2018				2017
Income (loss)
Retail Banking	$	283			$	330			$	296			$	(145	)		$	232				$	909			$	675
Corporate & Institutional Banking	665				675				584				937				525					1,924				1,527
Asset Management Group	61				49				68				56				47					178				146
Other, including BlackRock (c)	391				302				291				1,243				322					984				949
Net income	$	1,400			$	1,356			$	1,239			$	2,091			$	1,126				$	3,995			$	3,297
Revenue
Retail Banking	$	1,927			$	1,955			$	1,853			$	1,535			$	1,819				$	5,735			$	5,327
Corporate & Institutional Banking	1,517				1,535				1,429				1,502				1,479					4,481				4,320
Asset Management Group	299				294				300				297				292					893				871
Other, including BlackRock (c)	614				540				529				926				535					1,683				1,551
Total revenue	$	4,357			$	4,324			$	4,111			$	4,260			$	4,125				$	12,792			$	12,069

 

(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 nine months 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																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions	2018				2018				2018				2017				2017					2018				2017
Income Statement
Net interest income	$	1,305			$	1,277			$	1,218			$	1,190			$	1,176				$	3,800			$	3,436
Noninterest income	622				678				635				345				643					1,935				1,891
Total revenue	1,927				1,955				1,853				1,535				1,819					5,735				5,327
Provision for credit losses	113				72				69				149				77					254				198
Noninterest expense	1,442				1,450				1,395				1,391				1,375					4,287				4,060
Pretax earnings (loss)	372				433				389				(5		)		367					1,194				1,069
Income taxes	89				103				93				140				135					285				394
Earnings (loss)	$	283			$	330			$	296			$	(145	)		$	232				$	909			$	675
Average Balance Sheet
Loans held for sale	$	704			$	629			$	652			$	819			$	802				$	662			$	791
Loans
Consumer
Home equity	$	23,777			$	24,177			$	24,608			$	24,933			$	25,173				$	24,188			$	25,394
Automobile	14,169				13,642				13,105				12,767				12,484					13,643				12,285
Education	4,039				4,181				4,409				4,567				4,723					4,208				4,921
Credit cards	5,889				5,728				5,619				5,450				5,280					5,746				5,180
Other	1,857				1,771				1,765				1,793				1,787					1,794				1,767
Total consumer	49,731				49,499				49,506				49,510				49,447					49,579				49,547
Commercial and commercial real estate	10,209				10,458				10,527				10,513				10,630					10,397				10,852
Residential mortgage	14,153				13,718				13,420				12,950				12,382					13,767				11,999
Total loans	$	74,093			$	73,675			$	73,453			$	72,973			$	72,459				$	73,743			$	72,398
Total assets	$	89,963			$	89,021			$	88,734			$	88,883			$	88,642				$	89,259			$	88,589
Deposits
Noninterest-bearing demand	$	31,159			$	30,712			$	29,779			$	30,344			$	30,222				$	30,555			$	29,600
Interest-bearing demand	41,778				42,802				41,939				40,954				40,762					42,172				40,959
Money market	28,876				30,799				32,330				33,922				35,671					30,656				37,492
Savings	47,964				46,426				43,838				41,536				39,908					46,091				37,881
Certificates of deposit	11,974				11,816				12,082				12,554				12,962					11,957				13,331
Total deposits	$	161,751			$	162,555			$	159,968			$	159,310			$	159,525				$	161,431			$	159,263
Performance Ratios
Return on average assets	1.25		%		1.49		%		1.35		%		(.65		)%		1.04		%			1.36		%		1.02		%
Noninterest income to total revenue	32		%		35		%		34		%		22		%		35		%			34		%		35		%
Efficiency	75		%		74		%		75		%		91		%		76		%			75		%		76		%

 

(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																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions, except as noted	2018				2018				2018				2017				2017					2018				2017
Supplemental Noninterest Income Information
Consumer services	$	284			$	287			$	266			$	279			$	273				$	837			$	800
Brokerage	$	86			$	88			$	86			$	81			$	77				$	260			$	231
Residential mortgage	$	76			$	84			$	97			$	29			$	104				$	257			$	321
Service charges on deposits	$	179			$	164			$	160			$	177			$	174				$	503			$	491
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	127			$	124			$	125			$	127			$	129
Serviced portfolio acquisitions	$	6			$	3			$	1			$	1			$	2				$	10			$	18
MSR asset value (b)	$	1.4			$	1.3			$	1.3			$	1.2			$	1.2
MSR capitalization value (in basis points) (b)	108				104				101				92				95
Servicing income: (in millions)
Servicing fees, net (c)	$	42			$	39			$	51			$	45			$	46				$	132			$	142
Mortgage servicing rights valuation, net of economic hedge	$	—			$	13			$	9			$	(60	)		$	7				$	22			$	30
Residential mortgage loan statistics
Loan origination volume (in billions)	$	2.1			$	2.0			$	1.7			$	2.4			$	2.5				$	5.8			$	6.6
Loan sale margin percentage	2.21		%		2.21		%		2.83		%		2.71		%		2.80		%			2.39		%		2.83		%
Percentage of originations represented by:
Purchase volume (d)	72		%		71		%		56		%		50		%		57		%			67		%		54		%
Refinance volume	28		%		29		%		44		%		50		%		43		%			33		%		46		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	55		%		54		%		54		%		54		%		54		%			54		%		53		%
Digital consumer customers (f)	66		%		65		%		64		%		63		%		62		%			65		%		61		%
Credit-related statistics
Nonperforming assets	$	1,145			$	1,141			$	1,131			$	1,129			$	1,126
Net charge-offs	$	96			$	112			$	100			$	99			$	85				$	308			$	272
Other statistics
ATMs	9,093				9,043				9,047				9,051				8,987
Branches (g)	2,388				2,404				2,442				2,459				2,474
Brokerage account client assets (in billions) (h)	$	51			$	49			$	49			$	49			$	48

(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 nine 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																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions	2018				2018				2018				2017				2017					2018				2017
Income Statement
Net interest income	$	925			$	900			$	882			$	898			$	924				$	2,707			$	2,653
Noninterest income	592				635				547				604				555					1,774				1,667
Total revenue	1,517				1,535				1,429				1,502				1,479					4,481				4,320
Provision for credit losses (benefit)	(13		)		15				41				(14		)		62					43				174
Noninterest expense	669				639				626				643				599					1,934				1,785
Pretax earnings	861				881				762				873				818					2,504				2,361
Income taxes (benefit)	196				206				178				(64		)		293					580				834
Earnings	$	665			$	675			$	584			$	937			$	525				$	1,924			$	1,527
Average Balance Sheet
Loans held for sale	$	514			$	594			$	1,189			$	845			$	917				$	763			$	916
Loans
Commercial	$	103,474			$	102,722			$	100,802			$	100,726			$	98,794				$	102,342			$	95,660
Commercial real estate	26,650				26,715				26,732				27,259				27,559					26,699				27,410
Equipment lease financing	7,202				7,495				7,845				7,670				7,704					7,512				7,602
Total commercial lending	137,326				136,932				135,379				135,655				134,057					136,553				130,672
Consumer	32				39				77				107				222					49				276
Total loans	$	137,358			$	136,971			$	135,456			$	135,762			$	134,279				$	136,602			$	130,948
Total assets	$	153,897			$	153,619			$	151,909			$	151,721			$	150,948				$	153,149			$	147,299
Deposits
Noninterest-bearing demand	$	43,480			$	44,383			$	45,896			$	48,116			$	47,180				$	44,577			$	46,976
Money market	24,285				22,832				23,406				23,992				23,413					23,511				21,949
Other	20,343				18,589				18,592				17,247				16,879					19,182				16,100
Total deposits	$	88,108			$	85,804			$	87,894			$	89,355			$	87,472				$	87,270			$	85,025
Performance Ratios
Return on average assets	1.71		%		1.76		%		1.56		%		2.45		%		1.38		%			1.68		%		1.39		%
Noninterest income to total revenue	39		%		41		%		38		%		40		%		38		%			40		%		39		%
Efficiency	44		%		42		%		44		%		43		%		41		%			43		%		41		%
Other Information
Consolidated revenue from: (b)
Treasury Management (c)	$	453			$	446			$	419			$	401			$	384				$	1,318			$	1,115
Capital Markets (c)	$	275			$	283			$	258			$	271			$	231				$	816			$	746
Commercial mortgage banking activities
Commercial mortgage loans held for sale (d)	$	26			$	38			$	14			$	42			$	22				$	78			$	73
Commercial mortgage loan servicing income (e)	64				60				55				59				56					179				169
Commercial mortgage servicing rights valuation, net of economic hedge (f)	2				20				4				13				6					26				41
Total	$	92			$	118			$	73			$	114			$	84				$	283			$	283
MSR asset value (g)	$	766			$	748			$	723			$	668			$	628
Average Loans by C&IB business
Corporate Banking	$	58,580			$	58,523			$	57,856			$	57,064			$	56,867				$	58,322			$	55,242
Real Estate	37,463				37,419				37,252				38,949				38,516					37,379				37,995
Business Credit	17,540				17,336				16,818				16,612				16,097					17,234				15,531
Equipment Finance	14,643				14,352				14,243				13,912				13,744					14,414				13,239
Commercial Banking	6,966				7,065				7,066				6,957				7,042					7,032				7,052
Other	2,166				2,276				2,221				2,268				2,013					2,221				1,889
Total average loans	$	137,358			$	136,971			$	135,456			$	135,762			$	134,279				$	136,602			$	130,948
Credit-related statistics
Nonperforming assets (g)	$	355			$	385			$	508			$	531			$	549
Net charge-offs	$	1			$	(2	)		$	9			$	29			$	22				$	8			$	64

 

(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																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions, except as noted	2018				2018				2018				2017				2017					2018				2017
Income Statement
Net interest income	$	71			$	72			$	74			$	71			$	72				$	217			$	216
Noninterest income	228				222				226				226				220					676				655
Total revenue	299				294				300				297				292					893				871
Provision for credit losses (benefit)	2				7				(7		)		7				3					2				(6		)
Noninterest expense	217				223				218				217				214					658				646
Pretax earnings	80				64				89				73				75					233				231
Income taxes	19				15				21				17				28					55				85
Earnings	$	61			$	49			$	68			$	56			$	47				$	178			$	146
Average Balance Sheet
Loans
Consumer	$	4,623			$	4,698			$	4,785			$	4,894			$	4,977				$	4,702			$	5,059
Commercial and commercial real estate	727				742				733				745				680					734				705
Residential mortgage	1,605				1,561				1,517				1,433				1,330					1,561				1,257
Total loans	$	6,955			$	7,001			$	7,035			$	7,072			$	6,987				$	6,997			$	7,021
Total assets	$	7,397			$	7,469			$	7,499			$	7,545			$	7,464				$	7,455			$	7,499
Deposits
Noninterest-bearing demand	$	1,440			$	1,459			$	1,466			$	1,609			$	1,464				$	1,455			$	1,501
Interest-bearing demand	3,253				3,448				3,540				3,517				3,469					3,413				3,666
Money market	2,112				2,332				2,577				2,863				3,058					2,339				3,257
Savings	4,955				4,690				4,613				4,282				3,961					4,754				3,834
Other	537				382				305				288				237					408				237
Total deposits	$	12,297			$	12,311			$	12,501			$	12,559			$	12,189				$	12,369			$	12,495
Performance Ratios
Return on average assets	3.27		%		2.63		%		3.68		%		2.94		%		2.50		%			3.19		%		2.60		%
Noninterest income to total revenue	76		%		76		%		75		%		76		%		75		%			76		%		75		%
Efficiency	73		%		76		%		73		%		73		%		73		%			74		%		74		%
Other Information
Nonperforming assets (b)	$	51			$	51			$	52			$	49			$	45
Net charge-offs	$	1			$	1			$	6			$	(1	)		$	3				$	8			$	5
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management	$	159			$	149			$	148			$	151			$	146
Nondiscretionary client assets under administration	134				130				129				131				129
Total	$	293			$	279			$	277			$	282			$	275
Discretionary client assets under management
Personal	$	97			$	92			$	92			$	94			$	90
Institutional	62				57				56				57				56
Total	$	159			$	149			$	148			$	151			$	146

 

(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.