Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2018

(Unaudited)

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THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH 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 January 16, 2019. 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 Fourth 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																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
In millions, except per share data	2018				2018				2018				2018				2017					2018				2017
Interest Income
Loans	$	2,555			$	2,452			$	2,345			$	2,228			$	2,154				$	9,580			$	8,238
Investment securities	608				584				557				512				509					2,261				1,998
Other	196				187				180				178				162					741				578
Total interest income	3,359				3,223				3,082				2,918				2,825					12,582				10,814
Interest Expense
Deposits	419				336				261				213				190					1,229				623
Borrowed funds	459				421				408				344				290					1,632				1,083
Total interest expense	878				757				669				557				480					2,861				1,706
Net interest income	2,481				2,466				2,413				2,361				2,345					9,721				9,108
Noninterest Income
Asset management	428				486				456				455				720					1,825				1,942
Consumer services	387				377				381				357				366					1,502				1,415
Corporate services (a)	468				465				487				429				458					1,849				1,742
Residential mortgage	59				76				84				97				29					316				350
Service charges on deposits	192				186				169				167				183					714				695
Other (a) (b)	325				301				334				245				159					1,205				1,077
Total noninterest income	1,859				1,891				1,911				1,750				1,915					7,411				7,221
Total revenue	4,340				4,357				4,324				4,111				4,260					17,132				16,329
Provision For Credit Losses	148				88				80				92				125					408				441
Noninterest Expense
Personnel	1,348				1,413				1,356				1,354				1,449					5,471				5,268
Occupancy	202				195				203				218				240					818				868
Equipment	285				264				281				273				274					1,103				1,065
Marketing	84				71				75				55				60					285				244
Other	658				665				669				627				1,038					2,619				2,953
Total noninterest expense	2,577				2,608				2,584				2,527				3,061					10,296				10,398
Income before income taxes (benefit) and noncontrolling interests	1,615				1,661				1,660				1,492				1,074					6,428				5,490
Income taxes (benefit)	264				261				304				253				(1,017		)			1,082				102
Net income	1,351				1,400				1,356				1,239				2,091					5,346				5,388
Less: Net income attributable to noncontrolling interests	14				11				10				10				11					45				50
Preferred stock dividends (c)	55				63				55				63				55					236				236
Preferred stock discount accretion and redemptions	1				1				1				1				2					4				26
Net income attributable to common shareholders	$	1,281			$	1,325			$	1,290			$	1,165			$	2,023				$	5,061			$	5,076
Earnings Per Common Share
Basic	$	2.77			$	2.84			$	2.74			$	2.45			$	4.23				$	10.79			$	10.49
Diluted	$	2.75			$	2.82			$	2.72			$	2.43			$	4.18				$	10.71			$	10.36
Average Common Shares Outstanding
Basic	461				465				469				473				476					467				481
Diluted	463				467				472				476				480					470				486
Efficiency	59		%		60		%		60		%		61		%		72		%			60		%		64		%
Noninterest income to total revenue	43		%		43		%		44		%		43		%		45		%			43		%		44		%
Effective tax rate (d)	16.3		%		15.7		%		18.3		%		17.0		%		(94.7		)%			16.8		%		1.9		%

(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 $121 million for the three and twelve months ended December 31, 2017, respectively.

(b)	Includes net gains (losses) on sales of securities of $5 million, $(1) million, $(3) million, $(1) million, and $(3) million for the quarters ended December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively, and $7 million for full year 2017. The amount for full year 2018 was less than $.5 million.

(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 and full year 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. No changes were made to these provisional amounts during the one-year measurement period, which ended in December 2018.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

	December 31				September 30				June 30				March 31				December 31
In millions, except par value	2018				2018				2018				2018				2017
Assets
Cash and due from banks	$	5,608			$	5,248			$	5,425			$	4,649			$	5,249
Interest-earning deposits with banks (a)	10,893				19,800				21,972				28,821				28,595
Loans held for sale (b)	994				1,108				1,325				965				2,655
Investment securities – available for sale	63,389				61,211				60,275				56,018				57,618
Investment securities – held to maturity	19,312				19,593				19,850				18,544				18,513
Loans (b)	226,245				223,053				222,855				221,614				220,458
Allowance for loan and lease losses	(2,629		)		(2,584		)		(2,581		)		(2,604		)		(2,611		)
Net loans	223,616				220,469				220,274				219,010				217,847
Equity investments (c)	12,894				12,446				12,430				12,008				11,392
Mortgage servicing rights	1,983				2,136				2,045				1,979				1,832
Goodwill	9,218				9,218				9,218				9,218				9,173
Other (b)	34,408				28,851				27,897				27,949				27,894
Total assets	$	382,315			$	380,080			$	380,711			$	379,161			$	380,768
Liabilities
Deposits
Noninterest-bearing	$	73,960			$	74,736			$	79,047			$	78,303			$	79,864
Interest-bearing	193,879				190,148				185,838				186,401				185,189
Total deposits	267,839				264,884				264,885				264,704				265,053
Borrowed funds
Federal Home Loan Bank borrowings	21,501				20,036				22,036				19,537				21,037
Bank notes and senior debt	25,018				26,676				27,596				28,773				28,062
Subordinated debt	5,895				5,764				4,781				5,121				5,200
Other (b)	5,005				5,479				4,809				4,608				4,789
Total borrowed funds	57,419				57,955				59,222				58,039				59,088
Allowance for unfunded loan commitments and letters of credit	285				288				289				290				297
Accrued expenses and other liabilities	9,002				9,851				9,340				9,093				8,745
Total liabilities	334,545				332,978				333,736				332,126				333,183
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares	2,711				2,710				2,710				2,710				2,710
Capital surplus	16,277				16,299				16,250				16,227				16,374
Retained earnings	38,919				38,080				37,201				36,266				35,481
Accumulated other comprehensive income (loss)	(725		)		(1,260		)		(940		)		(699		)		(148		)
Common stock held in treasury at cost: 85, 80, 77, 72 and 69 shares	(9,454		)		(8,771		)		(8,317		)		(7,535		)		(6,904		)
Total shareholders’ equity	47,728				47,058				46,904				46,969				47,513
Noncontrolling interests	42				44				71				66				72
Total equity	47,770				47,102				46,975				47,035				47,585
Total liabilities and equity	$	382,315			$	380,080			$	380,711			$	379,161			$	380,768

 

(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $10.5 billion, $19.6 billion, $21.6 billion, $28.6 billion and $28.3 billion as of December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our third quarter 2018 Form 10-Q included, and our 2018 Form 10-K 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																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
In millions	2018				2018				2018				2018				2017					2018				2017
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	28,375			$	28,241			$	26,527			$	25,438			$	25,338				$	27,156			$	25,766
Non-agency	1,993				2,128				2,271				2,398				2,577					2,196				2,851
Commercial mortgage-backed	4,830				4,366				4,449				4,534				4,542					4,545				5,193
Asset-backed	5,186				5,459				5,161				5,158				5,330					5,242				5,681
U.S. Treasury and government agencies	18,443				16,757				15,719				14,307				13,646					16,319				13,178
Other	3,920				3,996				4,112				4,233				4,940					4,064				5,083
Total securities available for sale	62,747				60,947				58,239				56,068				56,373					59,522				57,752
Securities held to maturity
Residential mortgage-backed	15,941				16,292				15,608				14,818				13,976					15,670				13,049
Commercial mortgage-backed	648				715				807				902				963					767				1,255
Asset-backed	185				189				194				199				220					192				405
U.S. Treasury and government agencies	756				752				747				743				739					749				591
Other	1,856				1,871				1,884				1,926				1,974					1,884				2,005
Total securities held to maturity	19,386				19,819				19,240				18,588				17,872					19,262				17,305
Total investment securities	82,133				80,766				77,479				74,656				74,245					78,784				75,057
Loans
Commercial	116,596				113,883				113,349				111,462				111,365					113,837				107,752
Commercial real estate	28,382				28,860				28,888				28,901				29,432					28,756				29,487
Equipment lease financing	7,216				7,202				7,494				7,845				7,670					7,437				7,618
Consumer	55,331				55,449				55,387				55,588				55,814					55,438				56,262
Residential real estate	18,405				17,948				17,566				17,308				16,840					17,810				16,152
Total loans	225,930				223,342				222,684				221,104				221,121					223,278				217,271
Interest-earning deposits with banks (b)	16,691				19,151				21,017				25,667				25,567					20,603				24,043
Other interest-earning assets	10,431				7,114				6,905				7,904				8,759					8,093				8,983
Total interest-earning assets	335,185				330,373				328,085				329,331				329,692					330,758				325,354
Noninterest-earning assets	47,906				47,504				47,542				46,944				47,136					47,477				46,415
Total assets	$	383,091			$	377,877			$	375,627			$	376,275			$	376,828				$	378,235			$	371,769
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	55,228			$	55,507			$	56,199			$	58,523			$	60,954				$	56,353			$	62,331
Demand	62,207				60,138				60,409				59,620				57,128					60,599				57,045
Savings	55,065				52,919				51,115				48,451				45,817					51,908				42,749
Time deposits	18,743				17,756				16,634				16,844				17,438					17,501				17,322
Total interest-bearing deposits	191,243				186,320				184,357				183,438				181,337					186,361				179,447
Borrowed funds
Federal Home Loan Bank borrowings	20,683				21,516				20,956				20,721				19,565					20,970				19,890
Bank notes and senior debt	26,380				27,301				28,787				28,987				27,778					27,855				25,564
Subordinated debt	5,874				5,253				4,855				5,179				5,433					5,292				6,273
Other	5,847				5,768				4,368				4,751				5,261					5,189				5,162
Total borrowed funds	58,784				59,838				58,966				59,638				58,037					59,306				56,889
Total interest-bearing liabilities	250,027				246,158				243,323				243,076				239,374					245,667				236,336
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	75,228				76,155				76,632				77,222				80,152					76,303				78,634
Accrued expenses and other liabilities	10,833				8,853				8,944				9,118				10,801					9,440				10,518
Equity	47,003				46,711				46,728				46,859				46,501					46,825				46,281
Total liabilities and equity	$	383,091			$	377,877			$	375,627			$	376,275			$	376,828				$	378,235			$	371,769

(a)	Calculated using average daily balances.

(b)

Amounts include average balances held with the Federal Reserve Bank of Cleveland of $16.4 billion, $18.8 billion, $20.7 billion, $25.4 billion and $25.3 billion for the three months ended December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017, respectively, and $20.3 billion and $23.6 billion for the years ended December 31, 2018 and December 31, 2017, respectfully.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended																Year ended
	December 31			September 30			June 30			March 31			December 31				December 31			December 31
	2018			2018			2018			2018			2017				2018			2017
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.86	%		2.76	%		2.68	%		2.60	%		2.58	%			2.72	%		2.57	%
Non-agency	7.08	%		7.18	%		6.52	%		5.99	%		4.29	%			6.65	%		5.37	%
Commercial mortgage-backed	2.99	%		2.72	%		2.76	%		2.75	%		4.68	%			2.82	%		3.00	%
Asset-backed	3.24	%		3.37	%		3.11	%		2.87	%		2.82	%			3.15	%		2.59	%
U.S. Treasury and government agencies	2.41	%		2.25	%		2.25	%		2.07	%		1.79	%			2.29	%		1.78	%
Other	3.37	%		3.28	%		4.06	%		3.17	%		3.32	%			3.49	%		3.11	%
Total securities available for sale	2.93	%		2.86	%		2.85	%		2.69	%		2.73	%			2.85	%		2.62	%
Securities held to maturity
Residential mortgage-backed	2.98	%		2.92	%		2.89	%		2.84	%		2.74	%			2.91	%		2.79	%
Commercial mortgage-backed	3.68	%		3.71	%		3.71	%		3.76	%		4.11	%			3.78	%		4.06	%
Asset-backed	3.76	%		3.65	%		3.48	%		2.90	%		2.66	%			3.65	%		2.47	%
U.S. Treasury and government agencies	2.86	%		2.85	%		2.83	%		2.80	%		2.85	%			2.80	%		3.05	%
Other	4.41	%		4.42	%		4.39	%		4.44	%		5.28	%			4.35	%		5.24	%
Total securities held to maturity	3.14	%		3.10	%		3.07	%		3.05	%		3.10	%			3.09	%		3.17	%
Total investment securities	2.98	%		2.92	%		2.91	%		2.78	%		2.82	%			2.91	%		2.74	%
Loans
Commercial	4.17	%		4.06	%		3.97	%		3.74	%		3.59	%			4.05	%		3.51	%
Commercial real estate	4.42	%		4.10	%		4.04	%		3.81	%		3.68	%			4.15	%		3.57	%
Equipment lease financing	3.77	%		3.78	%		3.16	%		3.68	%		2.33	%			3.59	%		3.26	%
Consumer	5.32	%		5.17	%		4.96	%		4.87	%		4.72	%			5.08	%		4.59	%
Residential real estate	4.41	%		4.45	%		4.36	%		4.40	%		4.41	%			4.40	%		4.49	%
Total loans	4.49	%		4.36	%		4.23	%		4.09	%		3.91	%			4.33	%		3.86	%
Interest-earning deposits with banks	2.25	%		1.97	%		1.78	%		1.52	%		1.33	%			1.84	%		1.11	%
Other interest-earning assets	3.93	%		5.19	%		4.98	%		4.11	%		3.55	%			4.47	%		3.48	%
Total yield on interest-earning assets	3.99	%		3.89	%		3.78	%		3.59	%		3.45	%			3.84	%		3.39	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	.99	%		.80	%		.64	%		.54	%		.45	%			.74	%		.35	%
Demand	.46	%		.32	%		.25	%		.21	%		.17	%			.31	%		.13	%
Savings	1.04	%		.92	%		.74	%		.57	%		.51	%			.82	%		.46	%
Time deposits	1.38	%		1.18	%		.98	%		.88	%		.85	%			1.11	%		.77	%
Total interest-bearing deposits	.87	%		.71	%		.57	%		.47	%		.42	%			.66	%		.35	%
Borrowed funds
Federal Home Loan Bank borrowings	2.57	%		2.42	%		2.23	%		1.76	%		1.48	%			2.28	%		1.31	%
Bank notes and senior debt	3.31	%		2.92	%		2.95	%		2.43	%		2.04	%			2.94	%		2.02	%
Subordinated debt	4.44	%		4.10	%		4.50	%		3.91	%		3.49	%			4.23	%		3.54	%
Other	2.36	%		2.11	%		1.82	%		2.18	%		1.74	%			2.16	%		1.61	%
Total borrowed funds	3.07	%		2.76	%		2.74	%		2.31	%		1.96	%			2.75	%		1.90	%
Total rate on interest-bearing liabilities	1.38	%		1.21	%		1.10	%		.91	%		.79	%			1.16	%		.72	%
Interest rate spread	2.61	%		2.68	%		2.68	%		2.68	%		2.66	%			2.68	%		2.67	%
Benefit from use of noninterest bearing sources (b)	.35			.31			.28			.23			.22				.29			.20
Net interest margin	2.96	%		2.99	%		2.96	%		2.91	%		2.88	%			2.97	%		2.87	%

(a)

Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. 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 December 31, 2018, September 30, 2018, June 30, 2018, March 31, 2018 and December 31, 2017 were $28 million, $29 million, $29 million, $29 million and $54 million, respectively. The taxable-equivalent adjustments to net interest income for the years ended December 31, 2018 and December 31, 2017 were $115 million and $215 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																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
In millions, except per share data	2018				2018				2018				2018				2017					2018				2017
Basic
Net income	$	1,351			$	1,400			$	1,356			$	1,239			$	2,091				$	5,346			$	5,388
Less:
Net income attributable to noncontrolling interests	14				11				10				10				11					45				50
Preferred stock dividends (a)	55				63				55				63				55					236				236
Preferred stock discount accretion and redemptions	1				1				1				1				2					4				26
Net income attributable to common shareholders	1,281				1,325				1,290				1,165				2,023					5,061				5,076
Less: Dividends and undistributed earnings allocated   to nonvested restricted shares	5				6				5				5				8					21				23
Net income attributable to basic common shares	$	1,276			$	1,319			$	1,285			$	1,160			$	2,015				$	5,040			$	5,053
Basic weighted-average common shares outstanding	461				465				469				473				476					467				481
Basic earnings per common share	$	2.77			$	2.84			$	2.74			$	2.45			$	4.23				$	10.79			$	10.49
Diluted
Net income attributable to basic common shares	$	1,276			$	1,319			$	1,285			$	1,160			$	2,015				$	5,040			$	5,053
Less: Impact of BlackRock earnings per share dilution	2				2				3				2				8					9				16
Net income attributable to diluted common shares	$	1,274			$	1,317			$	1,282			$	1,158			$	2,007				$	5,031			$	5,037
Basic weighted-average common shares outstanding	461				465				469				473				476					467				481
Dilutive potential common shares	2				2				3				3				4					3				5
Diluted weighted-average common shares outstanding	463				467				472				476				480					470				486
Diluted earnings per common share	$	2.75			$	2.82			$	2.72			$	2.43			$	4.18				$	10.71			$	10.36

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

Table 6: Details of Loans (Unaudited)

		December 31				September 30				June 30				March 31				December 31
In millions		2018				2018				2018				2018				2017
Commercial lending
Commercial
Manufacturing		$	21,207			$	21,272			$	21,667			$	21,367			$	20,578
Retail/wholesale trade		20,850				19,689				19,299				18,232				17,846
Service providers		14,869				14,386				14,343				14,554				15,100
Real estate related (a)		12,312				12,539				12,688				12,701				12,496
Financial services		9,500				9,441				9,241				9,479				8,532
Health care		8,886				9,217				9,564				9,937				9,739
Transportation and warehousing		5,781				5,715				5,531				5,488				5,609
Other industries		23,429				21,412				21,034				20,550				20,627
Total commercial		116,834				113,671				113,367				112,308				110,527
Commercial real estate		28,140				28,563				28,946				28,835				28,978
Equipment lease financing		7,308				7,214				7,323				7,802				7,934
Total commercial lending		152,282				149,448				149,636				148,945				147,439
Consumer lending
Home equity		26,123				26,628				27,219				27,699				28,364
Residential real estate		18,657				18,203				17,805				17,456				17,212
Automobile		14,419				14,309				13,892				13,295				12,880
Credit card		6,357				5,979				5,830				5,657				5,699
Education		3,822				3,954				4,057				4,228				4,454
Other consumer		4,585				4,532				4,416				4,334				4,410
Total consumer lending		73,963				73,605				73,219				72,669				73,019
Total loans		$	226,245			$	223,053			$	222,855			$	221,614			$	220,458

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Allowance for Loan and Lease Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses

		December 31				September 30				June 30				March 31				December 31
Three months ended - in millions		2018				2018				2018				2018				2017
Beginning balance		$	2,584			$	2,581			$	2,604			$	2,611			$	2,605
Gross charge-offs:
Commercial		(30		)		(26		)		(24		)		(28		)		(46		)
Commercial real estate										(2		)		(6		)		(15		)
Equipment lease financing		(2		)		(2		)		(2		)		(2		)		(5		)
Home equity		(25		)		(24		)		(33		)		(28		)		(25		)
Residential real estate		3				(3		)		(4		)		(2		)		(1		)
Automobile		(54		)		(40		)		(39		)		(38		)		(37		)
Credit card		(56		)		(52		)		(53		)		(56		)		(46		)
Education		(7		)		(7		)		(8		)		(9		)		(11		)
Other consumer		(29		)		(24		)		(28		)		(24		)		(23		)
Total gross charge-offs		(200		)		(178		)		(193		)		(193		)		(209		)
Recoveries:
Commercial		17				18				16				16				20
Commercial real estate		6				4				8				6				7
Equipment lease financing		2				1				1				4				3
Home equity		31				23				23				21				24
Residential real estate		3				8				6				4				6
Automobile		21				21				18				17				15
Credit card		6				6				6				6				5
Education		2				2				2				2				2
Other consumer		5				4				4				4				4
Total recoveries		93				87				84				80				86
Net (charge-offs) / recoveries:
Commercial		(13		)		(8		)		(8		)		(12		)		(26		)
Commercial real estate		6				4				6								(8		)
Equipment lease financing						(1		)		(1		)		2				(2		)
Home equity		6				(1		)		(10		)		(7		)		(1		)
Residential real estate		6				5				2				2				5
Automobile		(33		)		(19		)		(21		)		(21		)		(22		)
Credit card		(50		)		(46		)		(47		)		(50		)		(41		)
Education		(5		)		(5		)		(6		)		(7		)		(9		)
Other consumer		(24		)		(20		)		(24		)		(20		)		(19		)
Total net (charge-offs)		(107		)		(91		)		(109		)		(113		)		(123		)
Provision for credit losses		148				88				80				92				125
Net decrease / (increase) in allowance for unfunded loan commitments and letters of credit		3				1				1				7				(4		)
Other		1				5				5				7				8
Ending balance		$	2,629			$	2,584			$	2,581			$	2,604			$	2,611
Supplemental Information
Net charge-offs to average loans (annualized)		.19		%		.16		%		.20		%		.21		%		.22		%
Allowance for loan and lease losses to total loans		1.16		%		1.16		%		1.16		%		1.18		%		1.18		%
Commercial lending net charge-offs		$	(7	)		$	(5	)		$	(3	)		$	(10	)		$	(36	)
Consumer lending net charge-offs		(100		)		(86		)		(106		)		(103		)		(87		)
Total net charge-offs		$	(107	)		$	(91	)		$	(109	)		$	(113	)		$	(123	)
Net charge-offs to average loans (annualized)
Commercial lending		.02		%		.01		%		.01		%		.03		%		.10		%
Consumer lending		.54		%		.46		%		.58		%		.57		%		.48		%

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type

		December 31				September 30				June 30				March 31				December 31
In millions		2018				2018				2018				2018				2017
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade		$	38			$	47			$	65			$	126			$	115
Manufacturing		54				43				49				67				55
Service providers		50				53				48				36				35
Real estate related (a)		17				18				22				25				33
Health care		20				14				15				13				15
Transportation and warehousing		8				7				3				3				27
Other industries		159				138				136				156				149
Total commercial		346				320				338				426				429
Commercial real estate		75				68				71				107				123
Equipment lease financing		11				5				5				4				2
Total commercial lending		432				393				414				537				554
Consumer lending (b)
Home equity		797				828				821				820				818
Residential real estate		350				363				381				391				400
Automobile		100				95				87				79				76
Credit card		7				6				7				6				6
Other consumer		8				9				9				9				11
Total consumer lending		1,262				1,301				1,305				1,305				1,311
Total nonperforming loans (c)		1,694				1,694				1,719				1,842				1,865
OREO and foreclosed assets		114				131				135				162				170
Total nonperforming assets		$	1,808			$	1,825			$	1,854			$	2,004			$	2,035
Nonperforming loans to total loans		.75		%		.76		%		.77		%		.83		%		.85		%
Nonperforming assets to total loans, OREO and foreclosed assets		.80		%		.82		%		.83		%		.90		%		.92		%
Nonperforming assets to total assets		.47		%		.48		%		.49		%		.53		%		.53		%
Allowance for loan and lease losses to nonperforming loans		155		%		153		%		150		%		141		%		140		%

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

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

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Nonperforming Assets (Unaudited) (Continued)

Table 9: Change in Nonperforming Assets

		October 1, 2018 -				July 1, 2018 -				April 1, 2018 -				January 1, 2018 -				October 1, 2017 -
In millions		December 31, 2018				September 30, 2018				June 30, 2018				March 31, 2018				December 31, 2017
Beginning balance		$	1,825			$	1,854			$	2,004			$	2,035			$	2,067
New nonperforming assets		325				260				276				249				307
Charge-offs and valuation adjustments		(148		)		(126		)		(145		)		(137		)		(141		)
Principal activity, including paydowns and payoffs		(97		)		(99		)		(199		)		(81		)		(87		)
Asset sales and transfers to loans held for sale		(38		)		(38		)		(34		)		(29		)		(40		)
Returned to performing status		(59		)		(26		)		(48		)		(33		)		(71		)
Ending balance		$	1,808			$	1,825			$	1,854			$	2,004			$	2,035

Table 10: Largest Individual Nonperforming Assets (a)

December 31, 2018 - In millions
Ranking		Outstandings				Industry
1		$	36			Information
2		30				Mining, Quarrying, and Oil and Gas Extraction
3		25				Mining, Quarrying, and Oil and Gas Extraction
4		22				Manufacturing
5		20				Wholesale Trade
6		16				Service Providers
7		13				Manufacturing
8		12				Real Estate and Rental and Leasing
9		9				Construction
10		9				Mining, Quarrying, and Oil and Gas Extraction
Total		$	192
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
		Dec. 31				Sept. 30				Jun. 30				Mar. 31				Dec. 31				Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions		2018				2018				2018				2018				2017				2018			2018			2018			2018			2017
Commercial		$	82			$	60			$	57			$	53			$	45			.07	%		.05	%		.05	%		.05	%		.04	%
Commercial real estate		6				8				18				21				27				.02	%		.03	%		.06	%		.07	%		.09	%
Equipment lease financing		56				29				12				18				17				.77	%		.40	%		.16	%		.23	%		.21	%
Home equity		66				77				97				94				78				.25	%		.29	%		.36	%		.34	%		.27	%
Residential real estate
Non government insured		75				70				66				66				90				.40	%		.38	%		.37	%		.38	%		.52	%
Government insured		60				60				63				64				61				.32	%		.33	%		.35	%		.37	%		.35	%
Automobile		113				104				82				77				79				.78	%		.73	%		.59	%		.58	%		.61	%
Credit card		46				45				40				40				43				.72	%		.75	%		.69	%		.71	%		.75	%
Education
Non government insured		10				10				8				11				10				.26	%		.25	%		.20	%		.26	%		.22	%
Government insured		59				71				66				72				80				1.54	%		1.80	%		1.63	%		1.70	%		1.80	%
Other consumer		12				17				10				11				15				.26	%		.38	%		.23	%		.25	%		.34	%
Total		$	585			$	551			$	519			$	527			$	545			.26	%		.25	%		.23	%		.24	%		.25	%

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

		Amount																				Percent of Total Outstandings
		Dec. 31				Sept. 30				Jun. 30				Mar. 31				Dec. 31				Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions		2018				2018				2018				2018				2017				2018			2018			2018			2018			2017
Commercial		$	54			$	35			$	41			$	22			$	25			.05	%		.03	%		.04	%		.02	%		.02	%
Commercial real estate		3				3				2				12				2				.01	%		.01	%		.01	%		.04	%		.01	%
Equipment lease financing		12				16				7				1				1				.16	%		.22	%		.10	%		.01	%		.01	%
Home equity		25				30				40				31				26				.10	%		.11	%		.15	%		.11	%		.09	%
Residential real estate
Non government insured		17				16				18				16				21				.09	%		.09	%		.10	%		.09	%		.12	%
Government insured		56				51				48				54				53				.30	%		.28	%		.27	%		.31	%		.31	%
Automobile		29				25				20				18				20				.20	%		.17	%		.14	%		.14	%		.16	%
Credit card		29				28				24				26				26				.46	%		.47	%		.41	%		.46	%		.46	%
Education
Non government insured		4				6				5				6				6				.10	%		.15	%		.12	%		.14	%		.13	%
Government insured		37				42				45				43				52				.97	%		1.06	%		1.11	%		1.02	%		1.17	%
Other consumer		5				6				6				5				6				.11	%		.13	%		.14	%		.12	%		.14	%
Total		$	271			$	258			$	256			$	234			$	238			.12	%		.12	%		.11	%		.11	%		.11	%

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

		Amount																				Percent of Total Outstandings
		Dec. 31				Sept. 30				Jun. 30				Mar. 31				Dec. 31				Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions		2018				2018				2018				2018				2017				2018			2018			2018			2018			2017
Commercial		$	52			$	67			$	59			$	53			$	39			.04	%		.06	%		.05	%		.05	%		.04	%
Residential real estate
Non government insured		19				15				14				13				24				.10	%		.08	%		.08	%		.07	%		.14	%
Government insured		344				342				339				360				462				1.84	%		1.88	%		1.90	%		2.06	%		2.68	%
Automobile		12				8				7				9				8				.08	%		.06	%		.05	%		.07	%		.06	%
Credit card		53				48				44				45				45				.83	%		.80	%		.75	%		.80	%		.79	%
Education
Non government insured		3				3				4				5				4				.08	%		.08	%		.10	%		.12	%		.09	%
Government insured		138				129				114				136				148				3.61	%		3.26	%		2.81	%		3.22	%		3.32	%
Other consumer		8				7				5				7				7				.17	%		.15	%		.11	%		.16	%		.16	%
Total		$	629			$	619			$	586			$	628			$	737			.28	%		.28	%		.26	%		.28	%		.33	%

(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. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in the Mid-Atlantic, Midwest and Southeast. Retail Banking launched its National Retail Digital Strategy extending products and services to markets outside of our primary geographic markets. 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 December 31, 2018, our economic interest in BlackRock was 22%.

Table 14: Period End Employees

	December 31			September 30			June 30			March 31			December 31
	2018			2018			2018			2018			2017
Full-time employees
Retail Banking	29,180			29,296			29,884			29,903			29,604
Other full-time employees	21,748			21,768			21,498			21,055			20,754
Total full-time employees	50,928			51,064			51,382			50,958			50,358
Part-time employees
Retail Banking	1,974			2,071			2,349			2,337			2,368
Other part-time employees	161			187			563			189			180
Total part-time employees	2,135			2,258			2,912			2,526			2,548
Total	53,063			53,322			54,294			53,484			52,906

 

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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																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
In millions	2018				2018				2018				2018				2017					2018				2017
Income (loss) (c)
Retail Banking	$	313			$	228			$	274			$	249			$	(105	)			$	1,064			$	447
Corporate & Institutional Banking	651				642				652				563				960					2,508				2,433
Asset Management Group	42				55				43				62				58					202				187
Other, including BlackRock (d)	345				475				387				365				1,178					1,572				2,321
Net income	$	1,351			$	1,400			$	1,356			$	1,239			$	2,091				$	5,346			$	5,388
Revenue
Retail Banking	$	2,015			$	1,927			$	1,955			$	1,853			$	1,535				$	7,750			$	6,862
Corporate & Institutional Banking	1,562				1,517				1,535				1,429				1,502					6,043				5,822
Asset Management Group	286				299				294				300				297					1,179				1,168
Other, including BlackRock (d)	477				614				540				529				926					2,160				2,477
Total revenue	$	4,340			$	4,357			$	4,324			$	4,111			$	4,260				$	17,132			$	16,329

 

(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 and full year 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. No changes were made to these provisional amounts during the one-year measurement period, which ended in December 2018.

(c)

In the fourth quarter of 2018, we updated our internal management reporting processes relating to our segment reporting disclosures. Certain noninterest expenses and fourth quarter 2017 net income tax benefits that were previously recorded within "Other, including BlackRock", were reclassified to our reportable segments. These expenses largely relate to items that were previously considered corporate expenses, but are either closely aligned to processes and revenue functions within our lines of business or are an allocation of expenses that the line of business would incur if it operated on a standalone basis. Fourth quarter 2017 net income tax benefits were reclassified within that period, while the expense reclassifications were retrospectively applied to all prior periods presented.

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Table 16: Retail Banking (Unaudited) (a)

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
Dollars in millions	2018				2018				2018				2018				2017					2018				2017
Income Statement
Net interest income	$	1,319			$	1,305			$	1,277			$	1,218			$	1,190				$	5,119			$	4,626
Noninterest income	696				622				678				635				345					2,631				2,236
Total revenue	2,015				1,927				1,955				1,853				1,535					7,750				6,862
Provision for credit losses	119				113				72				69				149					373				347
Noninterest expense	1,487				1,514				1,521				1,456				1,494					5,978				5,746
Pretax earnings (loss)	409				300				362				328				(108		)			1,399				769
Income taxes	96				72				88				79				(3		)			335				322
Earnings (loss)	$	313			$	228			$	274			$	249			$	(105	)			$	1,064			$	447
Average Balance Sheet
Loans held for sale	$	559			$	704			$	629			$	652			$	819				$	636			$	799
Loans
Consumer
Home equity	$	23,407			$	23,777			$	24,177			$	24,608			$	24,933				$	23,991			$	25,278
Automobile	14,375				14,169				13,642				13,105				12,767					13,827				12,407
Education	3,918				4,039				4,181				4,409				4,567					4,135				4,832
Credit cards	6,112				5,889				5,728				5,619				5,450					5,838				5,248
Other	1,985				1,857				1,771				1,765				1,793					1,843				1,773
Total consumer	49,797				49,731				49,499				49,506				49,510					49,634				49,538
Commercial and commercial real estate	10,339				10,209				10,458				10,527				10,513					10,383				10,767
Residential mortgage	14,637				14,153				13,718				13,420				12,950					13,985				12,238
Total loans	$	74,773			$	74,093			$	73,675			$	73,453			$	72,973				$	74,002			$	72,543
Total assets	$	91,164			$	89,963			$	89,021			$	88,734			$	88,883				$	89,739			$	88,663
Deposits
Noninterest-bearing demand	$	31,011			$	31,159			$	30,712			$	29,779			$	30,344				$	30,670			$	29,788
Interest-bearing demand	41,655				41,778				42,802				41,939				40,954					42,042				40,958
Money market	27,256				28,876				30,799				32,330				33,922					29,798				36,592
Savings	49,771				47,964				46,426				43,838				41,536					47,019				38,802
Certificates of deposit	12,153				11,974				11,816				12,082				12,554					12,007				13,135
Total deposits	$	161,846			$	161,751			$	162,555			$	159,968			$	159,310				$	161,536			$	159,275
Performance Ratios
Return on average assets	1.36		%		1.01		%		1.23		%		1.14		%		(.47		)%			1.19		%		.50		%
Noninterest income to total revenue	35		%		32		%		35		%		34		%		22		%			34		%		33		%
Efficiency	74		%		79		%		78		%		79		%		97		%			77		%		84		%

 

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Retail Banking (Unaudited) (Continued)

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
Dollars in millions, except as noted	2018				2018				2018				2018				2017					2018				2017
Supplemental Noninterest Income Information
Consumer services	$	291			$	284			$	287			$	266			$	279				$	1,128			$	1,079
Brokerage	$	90			$	86			$	88			$	86			$	81				$	350			$	312
Residential mortgage	$	59			$	76			$	84			$	97			$	29				$	316			$	350
Service charges on deposits	$	185			$	179			$	164			$	160			$	177				$	688			$	668
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	125			$	127			$	124			$	125			$	127
Serviced portfolio acquisitions	$	2			$	6			$	3			$	1			$	1				$	12			$	19
MSR asset value (b)	$	1.3			$	1.4			$	1.3			$	1.3			$	1.2
MSR capitalization value (in basis points) (b)	100				108				104				101				92
Servicing income: (in millions)
Servicing fees, net (c)	$	49			$	42			$	39			$	51			$	45				$	181			$	187
Mortgage servicing rights valuation, net of economic hedge	$	(19	)		$	—			$	13			$	9			$	(60	)			$	3			$	(30	)
Residential mortgage loan statistics
Loan origination volume (in billions)	$	1.6			$	2.1			$	2.0			$	1.7			$	2.4				$	7.4			$	9.0
Loan sale margin percentage	2.49		%		2.21		%		2.21		%		2.83		%		2.71		%			2.41		%		2.80		%
Percentage of originations represented by:
Purchase volume (d)	67		%		72		%		71		%		56		%		50		%			67		%		53		%
Refinance volume	33		%		28		%		29		%		44		%		50		%			33		%		47		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	55		%		55		%		54		%		54		%		54		%			55		%		53		%
Digital consumer customers (f)	67		%		66		%		65		%		64		%		63		%			66		%		62		%
Credit-related statistics
Nonperforming assets	$	1,126			$	1,145			$	1,141			$	1,131			$	1,129
Net charge-offs	$	112			$	96			$	112			$	100			$	99				$	420			$	371
Other statistics
ATMs	9,162				9,093				9,043				9,047				9,051
Branches (g)	2,372				2,388				2,404				2,442				2,459
Brokerage account client assets (in billions) (h)	$	47			$	51			$	49			$	49			$	49

(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 ended and year ended, respectively.

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

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

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

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

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

(h)	Includes cash and money market balances.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

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

	Three months ended																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
Dollars in millions	2018				2018				2018				2018				2017					2018				2017
Income Statement
Net interest income	$	930			$	925			$	900			$	882			$	898				$	3,637			$	3,551
Noninterest income	632				592				635				547				604					2,406				2,271
Total revenue	1,562				1,517				1,535				1,429				1,502					6,043				5,822
Provision for credit losses (benefit)	42				(13		)		15				41				(14		)			85				160
Noninterest expense	687				698				668				653				686					2,706				2,554
Pretax earnings	833				832				852				735				830					3,252				3,108
Income taxes (benefit)	182				190				200				172				(130		)			744				675
Earnings	$	651			$	642			$	652			$	563			$	960				$	2,508			$	2,433
Average Balance Sheet
Loans held for sale	$	669			$	514			$	594			$	1,189			$	845				$	739			$	898
Loans
Commercial	$	106,082			$	103,474			$	102,722			$	100,802			$	100,726				$	103,285			$	96,937
Commercial real estate	26,183				26,650				26,715				26,732				27,259					26,569				27,372
Equipment lease financing	7,216				7,202				7,495				7,845				7,670					7,437				7,619
Total commercial lending	139,481				137,326				136,932				135,379				135,655					137,291				131,928
Consumer	22				32				39				77				107					42				233
Total loans	$	139,503			$	137,358			$	136,971			$	135,456			$	135,762				$	137,333			$	132,161
Total assets	$	156,997			$	153,897			$	153,619			$	151,909			$	151,721				$	154,119			$	148,414
Deposits
Noninterest-bearing demand	$	42,678			$	43,480			$	44,383			$	45,896			$	48,116				$	44,099			$	47,264
Money market	25,691				24,285				22,832				23,406				23,992					24,060				22,464
Other	23,423				20,343				18,589				18,592				17,247					20,250				16,389
Total deposits	$	91,792			$	88,108			$	85,804			$	87,894			$	89,355				$	88,409			$	86,117
Performance Ratios
Return on average assets	1.65		%		1.66		%		1.70		%		1.50		%		2.51		%			1.63		%		1.64		%
Noninterest income to total revenue	40		%		39		%		41		%		38		%		40		%			40		%		39		%
Efficiency	44		%		46		%		44		%		46		%		46		%			45		%		44		%
Other Information
Consolidated revenue from: (b)
Treasury Management (c)	$	461			$	453			$	446			$	419			$	401				$	1,779			$	1,516
Capital Markets (c)	$	272			$	275			$	283			$	258			$	271				$	1,088			$	1,017
Commercial mortgage banking activities
Commercial mortgage loans held for sale (d)	$	29			$	26			$	38			$	14			$	42				$	107			$	115
Commercial mortgage loan servicing income (e)	68				64				60				55				59					247				228
Commercial mortgage servicing rights     valuation, net of economic hedge (f)	1				2				20				4				13					27				54
Total	$	98			$	92			$	118			$	73			$	114				$	381			$	397
MSR asset value (g)	$	726			$	766			$	748			$	723			$	668
Average Loans by C&IB business
Corporate Banking	$	59,468			$	58,580			$	58,523			$	57,856			$	57,064				$	58,611			$	55,701
Real Estate	38,141				37,463				37,419				37,252				38,949					37,571				38,235
Business Credit	17,935				17,540				17,336				16,818				16,612					17,411				15,804
Equipment Finance	14,879				14,643				14,352				14,243				13,912					14,531				13,408
Commercial Banking	6,842				6,966				7,065				7,066				6,957					6,984				7,028
Other	2,238				2,166				2,276				2,221				2,268					2,225				1,985
Total average loans	$	139,503			$	137,358			$	136,971			$	135,456			$	135,762				$	137,333			$	132,161
Credit-related statistics
Nonperforming assets (g)	$	377			$	355			$	385			$	508			$	531
Net charge-offs	$	2			$	1			$	(2	)		$	9			$	29				$	10			$	93

 

(a)	See notes (a), (b) and (c) 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																					Year ended
	December 31				September 30				June 30				March 31				December 31					December 31				December 31
Dollars in millions, except as noted	2018				2018				2018				2018				2017					2018				2017
Income Statement
Net interest income	$	70			$	71			$	72			$	74			$	71				$	287			$	287
Noninterest income	216				228				222				226				226					892				881
Total revenue	286				299				294				300				297					1,179				1,168
Provision for credit losses (benefit)	—				2				7				(7		)		7					2				1
Noninterest expense	232				225				231				225				233					913				905
Pretax earnings	54				72				56				82				57					264				262
Income taxes	12				17				13				20				(1		)			62				75
Earnings	$	42			$	55			$	43			$	62			$	58				$	202			$	187
Average Balance Sheet
Loans
Consumer	$	4,522			$	4,623			$	4,698			$	4,785			$	4,894				$	4,656			$	5,018
Commercial and commercial real estate	705				727				742				733				745					727				715
Residential mortgage	1,666				1,605				1,561				1,517				1,433					1,588				1,301
Total loans	$	6,893			$	6,955			$	7,001			$	7,035			$	7,072				$	6,971			$	7,034
Total assets	$	7,328			$	7,397			$	7,469			$	7,499			$	7,545				$	7,423			$	7,511
Deposits
Noninterest-bearing demand	$	1,469			$	1,440			$	1,459			$	1,466			$	1,609				$	1,458			$	1,528
Interest-bearing demand	3,055				3,253				3,448				3,540				3,517					3,323				3,628
Money market	2,001				2,112				2,332				2,577				2,863					2,253				3,158
Savings	5,294				4,955				4,690				4,613				4,282					4,890				3,947
Other	634				537				382				305				288					466				250
Total deposits	$	12,453			$	12,297			$	12,311			$	12,501			$	12,559				$	12,390			$	12,511
Performance Ratios
Return on average assets	2.27		%		2.95		%		2.31		%		3.35		%		3.05		%			2.72		%		2.49		%
Noninterest income to total revenue	76		%		76		%		76		%		75		%		76		%			76		%		75		%
Efficiency	81		%		75		%		79		%		75		%		78		%			77		%		77		%
Other Information
Nonperforming assets (b)	$	46			$	51			$	51			$	52			$	49
Net charge-offs	$	1			$	1			$	1			$	6			$	(1	)			$	9			$	4
Client Assets Under Administration    (in billions) (b) (c)
Discretionary client assets under management	$	148			$	159			$	149			$	148			$	151
Nondiscretionary client assets under administration	124				134				130				129				131
Total	$	272			$	293			$	279			$	277			$	282
Discretionary client assets under management
Personal	$	87			$	97			$	92			$	92			$	94
Institutional	61				62				57				56				57
Total	$	148			$	159			$	149			$	148			$	151

 

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

(b)	As of period end.

(c)	Excludes brokerage account client assets.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Glossary of Terms

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

Basel III common equity Tier 1 capital - Common stock plus related surplus, net of treasury stock, plus retained earnings, plus accumulated other comprehensive income for securities currently and 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, OREO and foreclosed 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, automobile, 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) and foreclosed assets - Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed assets include real and personal property. 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.