Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2019

(Unaudited)

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THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2019

(UNAUDITED)

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

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 17, 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 retail branch network is located in markets across the Mid-Atlantic, Midwest and Southeast. PNC also has strategic international offices in four countries outside the U.S.

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THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Second Quarter 2019 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																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
In millions, except per share data	2019				2019				2018				2018				2018					2019				2018
Interest Income
Loans	$	2,672			$	2,602			$	2,555			$	2,452			$	2,345				$	5,274			$	4,573
Investment securities	629				620				608				584				557					1,249				1,069
Other	196				206				196				187				180					402				358
Total interest income	3,497				3,428				3,359				3,223				3,082					6,925				6,000
Interest Expense
Deposits	515				472				419				336				261					987				474
Borrowed funds	484				481				459				421				408					965				752
Total interest expense	999				953				878				757				669					1,952				1,226
Net interest income	2,498				2,475				2,481				2,466				2,413					4,973				4,774
Noninterest Income
Asset management	445				437				428				486				456					882				911
Consumer services	392				371				387				377				381					763				738
Corporate services	484				462				468				465				487					946				916
Residential mortgage	82				65				59				76				84					147				181
Service charges on deposits	171				168				192				186				169					339				336
Other (a)	367				308				325				301				334					675				579
Total noninterest income	1,941				1,811				1,859				1,891				1,911					3,752				3,661
Total revenue	4,439				4,286				4,340				4,357				4,324					8,725				8,435
Provision For Credit Losses	180				189				148				88				80					369				172
Noninterest Expense
Personnel	1,365				1,414				1,348				1,413				1,356					2,779				2,710
Occupancy	212				215				202				195				203					427				421
Equipment	298				273				285				264				281					571				554
Marketing	83				65				84				71				75					148				130
Other	653				611				658				665				669					1,264				1,296
Total noninterest expense	2,611				2,578				2,577				2,608				2,584					5,189				5,111
Income before income taxes and noncontrolling interests	1,648				1,519				1,615				1,661				1,660					3,167				3,152
Income taxes	274				248				264				261				304					522				557
Net income	1,374				1,271				1,351				1,400				1,356					2,645				2,595
Less: Net income attributable to noncontrolling interests	12				10				14				11				10					22				20
Preferred stock dividends (b)	55				63				55				63				55					118				118
Preferred stock discount accretion and redemptions	1				1				1				1				1					2				2
Net income attributable to common shareholders	$	1,306			$	1,197			$	1,281			$	1,325			$	1,290				$	2,503			$	2,455
Earnings Per Common Share
Basic	$	2.89			$	2.62			$	2.77			$	2.84			$	2.74				$	5.51			$	5.19
Diluted	$	2.88			$	2.61			$	2.75			$	2.82			$	2.72				$	5.49			$	5.15
Average Common Shares Outstanding
Basic	451				455				461				465				469					453				471
Diluted	452				456				463				467				472					454				474
Efficiency	59		%		60		%		59		%		60		%		60		%			59		%		61		%
Noninterest income to total revenue	44		%		42		%		43		%		43		%		44		%			43		%		43		%
Effective tax rate (c)	16.6		%		16.3		%		16.3		%		15.7		%		18.3		%			16.5		%		17.7		%

(a)	Includes net gains (losses) on sales of securities of $20 million, $13 million, $5 million, $(1) million, and $(3) million for the quarters ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively, and $32 million and $(4) million for the six months ended June 30, 2019 and June 30, 2018, respectively.

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

(c)	The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

	June 30				March 31				December 31				September 30				June 30
In millions, except par value	2019				2019				2018				2018				2018
Assets
Cash and due from banks	$	5,416			$	5,062			$	5,608			$	5,248			$	5,425
Interest-earning deposits with banks (a)	18,362				15,261				10,893				19,800				21,972
Loans held for sale (b)	1,144				686				994				1,108				1,325
Investment securities – available for sale	69,355				65,051				63,389				61,211				60,275
Investment securities – held to maturity	18,948				18,818				19,312				19,593				19,850
Loans (b)	237,215				232,293				226,245				223,053				222,855
Allowance for loan and lease losses	(2,721		)		(2,692		)		(2,629		)		(2,584		)		(2,581		)
Net loans	234,494				229,601				223,616				220,469				220,274
Equity investments (c)	13,001				12,567				12,894				12,446				12,430
Mortgage servicing rights	1,627				1,812				1,983				2,136				2,045
Goodwill	9,221				9,218				9,218				9,218				9,218
Other (b)	34,193				34,761				34,408				28,851				27,897
Total assets	$	405,761			$	392,837			$	382,315			$	380,080			$	380,711
Liabilities
Deposits
Noninterest-bearing	$	69,867			$	71,606			$	73,960			$	74,736			$	79,047
Interest-bearing	203,393				199,615				193,879				190,148				185,838
Total deposits	273,260				271,221				267,839				264,884				264,885
Borrowed funds
Federal Home Loan Bank borrowings	29,376				20,501				21,501				20,036				22,036
Bank notes and senior debt	27,694				25,598				25,018				26,676				27,596
Subordinated debt	5,406				5,977				5,895				5,764				4,781
Other (b)	6,549				7,784				5,005				5,479				4,809
Total borrowed funds	69,025				59,860				57,419				57,955				59,222
Allowance for unfunded loan commitments and letters of credit	291				279				285				288				289
Accrued expenses and other liabilities	13,804				12,902				9,002				9,851				9,340
Total liabilities	356,380				344,262				334,545				332,978				333,736
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares	2,711				2,711				2,711				2,710				2,710
Capital surplus	16,248				16,173				16,277				16,299				16,250
Retained earnings	40,616				39,742				38,919				38,080				37,201
Accumulated other comprehensive income (loss)	631				(5		)		(725		)		(1,260		)		(940		)
Common stock held in treasury at cost: 95, 90, 85, 80 and 77 shares	(10,866		)		(10,085		)		(9,454		)		(8,771		)		(8,317		)
Total shareholders’ equity	49,340				48,536				47,728				47,058				46,904
Noncontrolling interests	41				39				42				44				71
Total equity	49,381				48,575				47,770				47,102				46,975
Total liabilities and equity	$	405,761			$	392,837			$	382,315			$	380,080			$	380,711

 

(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $18.1 billion, $15.0 billion, $10.5 billion, $19.6 billion and $21.6 billion as of June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our first quarter 2019 Form 10-Q included, and our second quarter 2019 Form 10-Q will include, additional information regarding these items.

(c)	Amounts include our equity interest in BlackRock.

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Table 3: Average Consolidated Balance Sheet (Unaudited) (a)
	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
In millions	2019				2019				2018				2018				2018					2019				2018
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	30,169			$	29,002			$	28,375			$	28,241			$	26,527				$	29,589			$	25,986
Non-agency	1,801				1,890				1,993				2,128				2,271					1,845				2,334
Commercial mortgage-backed	5,545				5,368				4,830				4,366				4,449					5,457				4,491
Asset-backed	5,395				5,136				5,186				5,459				5,161					5,266				5,160
U.S. Treasury and government agencies	18,815				18,240				18,443				16,757				15,719					18,529				15,017
Other	3,237				3,671				3,920				3,996				4,112					3,453				4,172
Total securities available for sale	64,962				63,307				62,747				60,947				58,239					64,139				57,160
Securities held to maturity
Residential mortgage-backed	15,350				15,627				15,941				16,292				15,608					15,487				15,216
Commercial mortgage-backed	570				600				648				715				807					585				854
Asset-backed	172				177				185				189				194					175				196
U.S. Treasury and government agencies	765				760				756				752				747					763				745
Other	1,822				1,847				1,856				1,871				1,884					1,834				1,904
Total securities held to maturity	18,679				19,011				19,386				19,819				19,240					18,844				18,915
Total investment securities	83,641				82,318				82,133				80,766				77,479					82,983				76,075
Loans
Commercial	124,441				119,345				116,596				113,883				113,349					121,907				112,411
Commercial real estate	28,423				28,147				28,382				28,860				28,888					28,285				28,894
Equipment lease financing	7,283				7,263				7,216				7,202				7,494					7,274				7,670
Consumer	55,202				54,996				55,331				55,449				55,387					55,099				55,487
Residential real estate	19,496				18,794				18,405				17,948				17,566					19,147				17,437
Total loans	234,845				228,545				225,930				223,342				222,684					231,712				221,899
Interest-earning deposits with banks (b)	13,469				15,017				16,691				19,151				21,017					14,238				23,329
Other interest-earning assets	13,145				11,068				10,431				7,114				6,905					12,113				7,402
Total interest-earning assets	345,100				336,948				335,185				330,373				328,085					341,046				328,705
Noninterest-earning assets	51,862				48,950				47,906				47,504				47,542					50,415				47,244
Total assets	$	396,962			$	385,898			$	383,091			$	377,877			$	375,627				$	391,461			$	375,949
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	54,814			$	54,702			$	55,228			$	55,507			$	56,199				$	54,758			$	57,355
Demand	64,431				63,480				62,207				60,138				60,409					63,958				60,017
Savings	61,949				58,821				55,065				52,919				51,115					60,394				49,791
Time deposits	20,040				18,813				18,743				17,756				16,634					19,430				16,737
Total interest-bearing deposits	201,234				195,816				191,243				186,320				184,357					198,540				183,900
Borrowed funds
Federal Home Loan Bank borrowings	22,681				21,491				20,683				21,516				20,956					22,089				20,839
Bank notes and senior debt	26,865				25,418				26,380				27,301				28,787					26,145				28,887
Subordinated debt	5,526				5,883				5,874				5,253				4,855					5,704				5,016
Other	7,263				6,991				5,847				5,768				4,368					7,128				4,558
Total borrowed funds	62,335				59,783				58,784				59,838				58,966					61,066				59,300
Total interest-bearing liabilities	263,569				255,599				250,027				246,158				243,323					259,606				243,200
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	71,648				71,402				75,228				76,155				76,632					71,526				76,925
Accrued expenses and other liabilities	13,122				11,242				10,833				8,853				8,944					12,187				9,031
Equity	48,623				47,655				47,003				46,711				46,728					48,142				46,793
Total liabilities and equity	$	396,962			$	385,898			$	383,091			$	377,877			$	375,627				$	391,461			$	375,949

(a)	Calculated using average daily balances.

(b)	Amounts include average balances held with the Federal Reserve Bank of Cleveland of $13.2 billion, $14.7 billion, $16.4 billion, $18.8 billion and $20.7 billion for the three months ended June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018, respectively, and $14.0 billion and $23.1 billion for the six months ended June 30, 2019 and June 30 2018, respectfully.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended																Six months ended
	June 30			March 31			December 31			September 30			June 30				June 30			June 30
	2019			2019			2018			2018			2018				2019			2018
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.93	%		2.94	%		2.86	%		2.76	%		2.68	%			2.93	%		2.64	%
Non-agency	7.99	%		7.31	%		7.08	%		7.18	%		6.52	%			7.64	%		6.25	%
Commercial mortgage-backed	3.06	%		3.13	%		2.99	%		2.72	%		2.76	%			3.09	%		2.76	%
Asset-backed	3.34	%		3.35	%		3.24	%		3.37	%		3.11	%			3.35	%		2.99	%
U.S. Treasury and government agencies	2.48	%		2.49	%		2.41	%		2.25	%		2.25	%			2.49	%		2.17	%
Other	3.33	%		3.34	%		3.37	%		3.28	%		4.06	%			3.34	%		3.61	%
Total securities available for sale	3.01	%		3.01	%		2.93	%		2.86	%		2.85	%			3.01	%		2.77	%
Securities held to maturity
Residential mortgage-backed	2.93	%		3.01	%		2.98	%		2.92	%		2.89	%			2.97	%		2.86	%
Commercial mortgage-backed	3.57	%		3.53	%		3.68	%		3.71	%		3.71	%			3.55	%		3.74	%
Asset-backed	3.92	%		3.83	%		3.76	%		3.65	%		3.48	%			3.88	%		3.19	%
U.S. Treasury and government agencies	2.84	%		2.81	%		2.86	%		2.85	%		2.83	%			2.83	%		2.82	%
Other	4.44	%		4.40	%		4.41	%		4.42	%		4.39	%			4.42	%		4.42	%
Total securities held to maturity	3.10	%		3.16	%		3.14	%		3.10	%		3.07	%			3.13	%		3.06	%
Total investment securities	3.03	%		3.05	%		2.98	%		2.92	%		2.91	%			3.04	%		2.85	%
Loans
Commercial	4.22	%		4.33	%		4.17	%		4.06	%		3.97	%			4.27	%		3.86	%
Commercial real estate	4.43	%		4.37	%		4.42	%		4.10	%		4.04	%			4.40	%		3.93	%
Equipment lease financing	4.06	%		3.93	%		3.77	%		3.78	%		3.16	%			4.00	%		3.43	%
Consumer	5.56	%		5.54	%		5.32	%		5.17	%		4.96	%			5.55	%		4.92	%
Residential real estate	4.27	%		4.29	%		4.41	%		4.45	%		4.36	%			4.28	%		4.38	%
Total loans	4.56	%		4.61	%		4.49	%		4.36	%		4.23	%			4.58	%		4.16	%
Interest-earning deposits with banks	2.38	%		2.43	%		2.25	%		1.97	%		1.78	%			2.41	%		1.64	%
Other interest-earning assets	3.55	%		4.14	%		3.93	%		5.19	%		4.98	%			3.82	%		4.52	%
Total yield on interest-earning assets	4.06	%		4.11	%		3.99	%		3.89	%		3.78	%			4.09	%		3.68	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	1.17	%		1.15	%		.99	%		.80	%		.64	%			1.16	%		.59	%
Demand	.55	%		.52	%		.46	%		.32	%		.25	%			.53	%		.23	%
Savings	1.19	%		1.13	%		1.04	%		.92	%		.74	%			1.16	%		.65	%
Time deposits	1.67	%		1.55	%		1.38	%		1.18	%		.98	%			1.61	%		.93	%
Total interest-bearing deposits	1.03	%		.98	%		.87	%		.71	%		.57	%			1.00	%		.52	%
Borrowed funds
Federal Home Loan Bank borrowings	2.69	%		2.77	%		2.57	%		2.42	%		2.23	%			2.73	%		2.00	%
Bank notes and senior debt	3.36	%		3.50	%		3.31	%		2.92	%		2.95	%			3.43	%		2.69	%
Subordinated debt	4.17	%		4.50	%		4.44	%		4.10	%		4.50	%			4.34	%		4.20	%
Other	2.44	%		2.44	%		2.36	%		2.11	%		1.82	%			2.44	%		2.01	%
Total borrowed funds	3.08	%		3.21	%		3.07	%		2.76	%		2.74	%			3.14	%		2.52	%
Total rate on interest-bearing liabilities	1.51	%		1.50	%		1.38	%		1.21	%		1.10	%			1.50	%		1.01	%
Interest rate spread	2.55	%		2.61	%		2.61	%		2.68	%		2.68	%			2.59	%		2.67	%
Benefit from use of noninterest bearing sources (b)	.36			.37			.35			.31			.28				.35			.27
Net interest margin	2.91	%		2.98	%		2.96	%		2.99	%		2.96	%			2.94	%		2.94	%

(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 June 30, 2019, March 31, 2019, December 31, 2018, September 30, 2018 and June 30, 2018 were $27 million, $27 million, $28 million, $29 million and $29 million, respectively. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2019 and June 30, 2018 were $54 million and $58 million, respectively.

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Table 5: Per Share Related Information (Unaudited)
	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
In millions, except per share data	2019				2019				2018				2018				2018					2019				2018
Basic
Net income	$	1,374			$	1,271			$	1,351			$	1,400			$	1,356				$	2,645			$	2,595
Less:
Net income attributable to noncontrolling interests	12				10				14				11				10					22				20
Preferred stock dividends (a)	55				63				55				63				55					118				118
Preferred stock discount accretion and redemptions	1				1				1				1				1					2				2
Net income attributable to common shareholders	1,306				1,197				1,281				1,325				1,290					2,503				2,455
Less: Dividends and undistributed earnings allocated   to nonvested restricted shares	4				5				5				6				5					9				10
Net income attributable to basic common shares	$	1,302			$	1,192			$	1,276			$	1,319			$	1,285				$	2,494			$	2,445
Basic weighted-average common shares outstanding	451				455				461				465				469					453				471
Basic earnings per common share	$	2.89			$	2.62			$	2.77			$	2.84			$	2.74				$	5.51			$	5.19
Diluted
Net income attributable to basic common shares	$	1,302			$	1,192			$	1,276			$	1,319			$	1,285				$	2,494			$	2,445
Less: Impact of BlackRock earnings per share dilution	2				3				2				2				3					5				5
Net income attributable to diluted common shares	$	1,300			$	1,189			$	1,274			$	1,317			$	1,282				$	2,489			$	2,440
Basic weighted-average common shares outstanding	451				455				461				465				469					453				471
Dilutive potential common shares	1				1				2				2				3					1				3
Diluted weighted-average common shares outstanding	452				456				463				467				472					454				474
Diluted earnings per common share	$	2.88			$	2.61			$	2.75			$	2.82			$	2.72				$	5.49			$	5.15

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

Table 6: Details of Loans (Unaudited)

		June 30				March 31				December 31				September 30				June 30
In millions		2019				2019				2018				2018				2018
Commercial lending
Commercial
Manufacturing		$	22,191			$	22,575			$	21,207			$	21,272			$	21,667
Retail/wholesale trade		22,280				21,655				20,850				19,689				19,299
Service providers		15,387				15,266				14,869				14,386				14,343
Real estate related (a)		12,264				12,287				12,312				12,539				12,688
Financial services		11,916				10,475				9,500				9,441				9,241
Health care		8,594				8,731				8,886				9,217				9,564
Transportation and warehousing		6,588				6,744				5,781				5,715				5,531
Other industries		26,404				25,260				23,429				21,412				21,034
Total commercial		125,624				122,993				116,834				113,671				113,367
Commercial real estate		28,570				28,101				28,140				28,563				28,946
Equipment lease financing		7,409				7,348				7,308				7,214				7,323
Total commercial lending		161,603				158,442				152,282				149,448				149,636
Consumer lending
Home equity		25,132				25,500				26,123				26,628				27,219
Residential real estate		20,092				19,107				18,657				18,203				17,805
Automobile		15,612				14,707				14,419				14,309				13,892
Credit card		6,511				6,267				6,357				5,979				5,830
Education		3,555				3,707				3,822				3,954				4,057
Other consumer		4,710				4,563				4,585				4,532				4,416
Total consumer lending		75,612				73,851				73,963				73,605				73,219
Total loans		$	237,215			$	232,293			$	226,245			$	223,053			$	222,855

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Allowance for Loan and Lease Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses

		June 30				March 31				December 31				September 30				June 30
Three months ended - dollars in millions		2019				2019				2018				2018				2018
Beginning balance		$	2,692			$	2,629			$	2,584			$	2,581			$	2,604
Gross charge-offs:
Commercial		(50		)		(25		)		(30		)		(26		)		(24		)
Commercial real estate		(2		)		(3		)										(2		)
Equipment lease financing		(1		)		(3		)		(2		)		(2		)		(2		)
Home equity		(18		)		(23		)		(25		)		(24		)		(33		)
Residential real estate		(2		)		(2		)		3				(3		)		(4		)
Automobile		(54		)		(58		)		(54		)		(40		)		(39		)
Credit card		(65		)		(67		)		(56		)		(52		)		(53		)
Education		(7		)		(6		)		(7		)		(7		)		(8		)
Other consumer		(28		)		(28		)		(29		)		(24		)		(28		)
Total gross charge-offs		(227		)		(215		)		(200		)		(178		)		(193		)
Recoveries:
Commercial		17				14				17				18				16
Commercial real estate		2				3				6				4				8
Equipment lease financing		2				2				2				1				1
Home equity		18				18				31				23				23
Residential real estate		4				3				3				8				6
Automobile		29				26				21				21				18
Credit card		7				7				6				6				6
Education		2				2				2				2				2
Other consumer		4				4				5				4				4
Total recoveries		85				79				93				87				84
Net (charge-offs) / recoveries:
Commercial		(33		)		(11		)		(13		)		(8		)		(8		)
Commercial real estate										6				4				6
Equipment lease financing		1				(1		)						(1		)		(1		)
Home equity						(5		)		6				(1		)		(10		)
Residential real estate		2				1				6				5				2
Automobile		(25		)		(32		)		(33		)		(19		)		(21		)
Credit card		(58		)		(60		)		(50		)		(46		)		(47		)
Education		(5		)		(4		)		(5		)		(5		)		(6		)
Other consumer		(24		)		(24		)		(24		)		(20		)		(24		)
Total net (charge-offs)		(142		)		(136		)		(107		)		(91		)		(109		)
Provision for credit losses		180				189				148				88				80
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit		(12		)		6				3				1				1
Other		3				4				1				5				5
Ending balance		$	2,721			$	2,692			$	2,629			$	2,584			$	2,581
Supplemental Information
Net charge-offs to average loans (annualized)		.24		%		.24		%		.19		%		.16		%		.20		%
Allowance for loan and lease losses to total loans		1.15		%		1.16		%		1.16		%		1.16		%		1.16		%
Commercial lending net charge-offs		$	(32	)		$	(12	)		$	(7	)		$	(5	)		$	(3	)
Consumer lending net charge-offs		(110		)		(124		)		(100		)		(86		)		(106		)
Total net charge-offs		$	(142	)		$	(136	)		$	(107	)		$	(91	)		$	(109	)
Net charge-offs to average loans (annualized)
Commercial lending		.08		%		.03		%		.02		%		.01		%		.01		%
Consumer lending		.59		%		.68		%		.54		%		.46		%		.58		%

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type

		June 30				March 31				December 31				September 30				June 30
Dollars in millions		2019				2019				2018				2018				2018
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade		$	42			$	35			$	38			$	47			$	65
Manufacturing		88				88				54				43				49
Service providers		53				52				50				53				48
Real estate related (a)		19				16				17				18				22
Health care		15				19				20				14				15
Transportation and warehousing		21				8				8				7				3
Other industries		203				151				159				138				136
Total commercial		441				369				346				320				338
Commercial real estate		93				54				75				68				71
Equipment lease financing		6				7				11				5				5
Total commercial lending		540				430				432				393				414
Consumer lending (b)
Home equity		712				763				797				828				821
Residential real estate		339				339				350				363				381
Automobile		118				107				100				95				87
Credit card		8				7				7				6				7
Other consumer		7				7				8				9				9
Total consumer lending		1,184				1,223				1,262				1,301				1,305
Total nonperforming loans (c)		1,724				1,653				1,694				1,694				1,719
OREO and foreclosed assets		126				132				114				131				135
Total nonperforming assets		$	1,850			$	1,785			$	1,808			$	1,825			$	1,854
Nonperforming loans to total loans		.73		%		.71		%		.75		%		.76		%		.77		%
Nonperforming assets to total loans, OREO and foreclosed assets		.78		%		.77		%		.80		%		.82		%		.83		%
Nonperforming assets to total assets		.46		%		.45		%		.47		%		.48		%		.49		%
Allowance for loan and lease losses to nonperforming loans		158		%		163		%		155		%		153		%		150		%

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

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

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Nonperforming Assets (Unaudited) (Continued)

Table 9: Change in Nonperforming Assets

		April 1, 2019 -				January 1, 2019 -				October 1, 2018 -				July 1, 2018 -				April 1, 2018 -
In millions		June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018				June 30, 2018
Beginning balance		$	1,785			$	1,808			$	1,825			$	1,854			$	2,004
New nonperforming assets		408				287				325				260				276
Charge-offs and valuation adjustments		(170		)		(164		)		(148		)		(126		)		(145		)
Principal activity, including paydowns and payoffs		(101		)		(92		)		(97		)		(99		)		(199		)
Asset sales and transfers to loans held for sale		(27		)		(13		)		(38		)		(38		)		(34		)
Returned to performing status		(45		)		(41		)		(59		)		(26		)		(48		)
Ending balance		$	1,850			$	1,785			$	1,808			$	1,825			$	1,854

Table 10: Largest Individual Nonperforming Assets (a)

June 30, 2019 - Dollars in millions
Ranking		Outstandings				Industry
1		$	43			Real Estate and Rental and Leasing
2		34				Information
3		30				Real Estate and Rental and Leasing
4		29				Mining, Quarrying, and Oil and Gas Extraction
5		17				Wholesale Trade
6		16				Accommodation and Food Services
7		16				Manufacturing
8		16				Service Providers
9		15				Manufacturing
10		13				Manufacturing
Total		$	229
As a percent of total nonperforming assets						12%

 

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

Accruing Loans Past Due (Unaudited)

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

		Amount																				Percent of Total Outstandings
		Jun. 30				Mar. 31				Dec. 31				Sept. 30				Jun. 30				Jun. 30			Mar. 31			Dec. 31			Sept. 30			Jun. 30
Dollars in millions		2019				2019				2018				2018				2018				2019			2019			2018			2018			2018
Commercial		$	105			$	80			$	82			$	60			$	57			.08	%		.07	%		.07	%		.05	%		.05	%
Commercial real estate		9				43				6				8				18				.03	%		.15	%		.02	%		.03	%		.06	%
Equipment lease financing		7				84				56				29				12				.09	%		1.14	%		.77	%		.40	%		.16	%
Home equity		56				59				66				77				97				.22	%		.23	%		.25	%		.29	%		.36	%
Residential real estate
Non government insured		80				91				75				70				66				.40	%		.48	%		.40	%		.38	%		.37	%
Government insured		54				62				60				60				63				.27	%		.32	%		.32	%		.33	%		.35	%
Automobile		119				97				113				104				82				.76	%		.66	%		.78	%		.73	%		.59	%
Credit card		47				45				46				45				40				.72	%		.72	%		.72	%		.75	%		.69	%
Education
Non government insured		7				9				10				10				8				.20	%		.24	%		.26	%		.25	%		.20	%
Government insured		53				54				59				71				66				1.49	%		1.46	%		1.54	%		1.80	%		1.63	%
Other consumer		13				10				12				17				10				.28	%		.22	%		.26	%		.38	%		.23	%
Total		$	550			$	634			$	585			$	551			$	519			.23	%		.27	%		.26	%		.25	%		.23	%

 

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

		Amount																				Percent of Total Outstandings
		Jun. 30				Mar. 31				Dec. 31				Sept. 30				Jun. 30				Jun. 30			Mar. 31			Dec. 31			Sept. 30			Jun. 30
Dollars in millions		2019				2019				2018				2018				2018				2019			2019			2018			2018			2018
Commercial		$	33			$	25			$	54			$	35			$	41			.03	%		.02	%		.05	%		.03	%		.04	%
Commercial real estate		1				1				3				3				2				.00	%		.00	%		.01	%		.01	%		.01	%
Equipment lease financing		3				5				12				16				7				.04	%		.07	%		.16	%		.22	%		.10	%
Home equity		20				21				25				30				40				.08	%		.08	%		.10	%		.11	%		.15	%
Residential real estate
Non government insured		20				13				17				16				18				.10	%		.07	%		.09	%		.09	%		.10	%
Government insured		55				49				56				51				48				.27	%		.26	%		.30	%		.28	%		.27	%
Automobile		29				26				29				25				20				.19	%		.18	%		.20	%		.17	%		.14	%
Credit card		29				28				29				28				24				.45	%		.45	%		.46	%		.47	%		.41	%
Education
Non government insured		4				5				4				6				5				.11	%		.13	%		.10	%		.15	%		.12	%
Government insured		32				33				37				42				45				.90	%		.89	%		.97	%		1.06	%		1.11	%
Other consumer		9				6				5				6				6				.19	%		.13	%		.11	%		.13	%		.14	%
Total		$	235			$	212			$	271			$	258			$	256			.10	%		.09	%		.12	%		.12	%		.11	%

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

		Amount																				Percent of Total Outstandings
		Jun. 30				Mar. 31				Dec. 31				Sept. 30				Jun. 30				Jun. 30			Mar. 31			Dec. 31			Sept. 30			Jun. 30
Dollars in millions		2019				2019				2018				2018				2018				2019			2019			2018			2018			2018
Commercial		$	59			$	71			$	52			$	67			$	59			.05	%		.06	%		.04	%		.06	%		.05	%
Residential real estate
Non government insured		13				18				19				15				14				.06	%		.09	%		.10	%		.08	%		.08	%
Government insured		293				305				344				342				339				1.46	%		1.60	%		1.84	%		1.88	%		1.90	%
Automobile		8				10				12				8				7				.05	%		.07	%		.08	%		.06	%		.05	%
Credit card		48				53				53				48				44				.74	%		.85	%		.83	%		.80	%		.75	%
Education
Non government insured		3				3				3				3				4				.08	%		.08	%		.08	%		.08	%		.10	%
Government insured		92				123				138				129				114				2.59	%		3.32	%		3.61	%		3.26	%		2.81	%
Other consumer		8				7				8				7				5				.17	%		.15	%		.17	%		.15	%		.11	%
Total		$	524			$	590			$	629			$	619			$	586			.22	%		.25	%		.28	%		.28	%		.26	%

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

 

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located in markets across the Mid-Atlantic, Midwest and Southeast. In 2018, Retail Banking launched its national retail digital strategy designed to grow customers with digitally-led banking and an ultra-thin branch network in markets outside of our existing retail branch network. 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.

Asset Management Group provides personal wealth management for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is comprised of three distinct operating units:

•	Wealth management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, 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 clients.

•	Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

BlackRock, in which we hold an equity investment, is a leading publicly-traded investment management firm providing a broad range of investment and technology services to institutional and retail clients worldwide. Using a diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes, BlackRock tailors 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 technology services, including an investment and risk management technology platform, as well as advisory services and solutions to a broad base of institutional and wealth management clients. Our equity investment in BlackRock provides us with an additional source of noninterest income and increases our overall revenue diversification. BlackRock is a publicly-traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At June 30, 2019, our economic interest in BlackRock was 22%.

Table 14: Period End Employees

	June 30			March 31			December 31			September 30			June 30
	2019			2019			2018			2018			2018
Full-time employees
Retail Banking	28,671			28,992			29,180			29,296			29,884
Other full-time employees	21,571			21,652			21,748			21,768			21,498
Total full-time employees	50,242			50,644			50,928			51,064			51,382
Part-time employees
Retail Banking	2,037			1,887			1,974			2,071			2,349
Other part-time employees	518			180			161			187			563
Total part-time employees	2,555			2,067			2,135			2,258			2,912
Total	52,797			52,711			53,063			53,322			54,294

 

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

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

	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
In millions	2019				2019				2018				2018				2018					2019				2018
Income
Retail Banking	$	325			$	264			$	313			$	228			$	274				$	589			$	523
Corporate & Institutional Banking	602				552				651				642				652					1,154				1,215
Asset Management Group	80				45				42				55				43					125				105
Other, including BlackRock (b)	367				410				345				475				387					777				752
Net income	$	1,374			$	1,271			$	1,351			$	1,400			$	1,356				$	2,645			$	2,595
Revenue
Retail Banking	$	2,033			$	1,944			$	2,015			$	1,927			$	1,955				$	3,977			$	3,808
Corporate & Institutional Banking	1,578				1,474				1,562				1,517				1,535					3,052				2,964
Asset Management Group	354				287				286				299				294					641				594
Other, including BlackRock (b)	474				581				477				614				540					1,055				1,069
Total revenue	$	4,439			$	4,286			$	4,340			$	4,357			$	4,324				$	8,725			$	8,435

 

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Table 16: Retail Banking (Unaudited) (a)

	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
Dollars in millions	2019				2019				2018				2018				2018					2019				2018
Income Statement
Net interest income	$	1,376			$	1,349			$	1,319			$	1,305			$	1,277				$	2,725			$	2,495
Noninterest income	657				595				696				622				678					1,252				1,313
Total revenue	2,033				1,944				2,015				1,927				1,955					3,977				3,808
Provision for credit losses	81				128				119				113				72					209				141
Noninterest expense	1,527				1,468				1,487				1,514				1,521					2,995				2,977
Pretax earnings	425				348				409				300				362					773				690
Income taxes	100				84				96				72				88					184				167
Earnings	$	325			$	264			$	313			$	228			$	274				$	589			$	523
Average Balance Sheet
Loans held for sale	$	554			$	441			$	559			$	704			$	629				$	498			$	640
Loans
Consumer
Home equity	$	22,620			$	22,990			$	23,407			$	23,777			$	24,177				$	22,804			$	24,391
Automobile	15,222				14,608				14,375				14,169				13,642					14,917				13,375
Education	3,665				3,816				3,918				4,039				4,181					3,740				4,294
Credit cards	6,376				6,204				6,112				5,889				5,728					6,291				5,674
Other	2,179				2,068				1,985				1,857				1,771					2,123				1,768
Total consumer	50,062				49,686				49,797				49,731				49,499					49,875				49,502
Commercial and commercial real estate	10,481				10,461				10,339				10,209				10,458					10,471				10,493
Residential mortgage	15,737				15,034				14,637				14,153				13,718					15,388				13,570
Total loans	$	76,280			$	75,181			$	74,773			$	74,093			$	73,675				$	75,734			$	73,565
Total assets	$	92,350			$	91,255			$	91,164			$	89,963			$	89,021				$	91,805			$	88,879
Deposits
Noninterest-bearing demand	$	31,516			$	30,389			$	31,011			$	31,159			$	30,712				$	30,956			$	30,248
Interest-bearing demand	42,735				42,477				41,655				41,778				42,802					42,607				42,373
Money market	25,799				26,773				27,256				28,876				30,799					26,283				31,560
Savings	56,075				53,100				49,771				47,964				46,426					54,596				45,139
Certificates of deposit	12,704				12,381				12,153				11,974				11,816					12,543				11,948
Total deposits	$	168,829			$	165,120			$	161,846			$	161,751			$	162,555				$	166,985			$	161,268
Performance Ratios
Return on average assets	1.41		%		1.17		%		1.36		%		1.01		%		1.23		%			1.29		%		1.19		%
Noninterest income to total revenue	32		%		31		%		35		%		32		%		35		%			31		%		34		%
Efficiency	75		%		76		%		74		%		79		%		78		%			75		%		78		%

 

(a)	See note (a) on page 11.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Retail Banking (Unaudited) (Continued)

	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
Dollars in millions, except as noted	2019				2019				2018				2018				2018					2019				2018
Supplemental Noninterest Income Information
Consumer services	$	299			$	277			$	291			$	284			$	287				$	576			$	553
Brokerage	$	86			$	89			$	90			$	86			$	88				$	175			$	174
Residential mortgage	$	82			$	65			$	59			$	76			$	84				$	147			$	181
Service charges on deposits	$	164			$	162			$	185			$	179			$	164				$	326			$	324
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	124			$	123			$	125			$	127			$	124
Serviced portfolio acquisitions	$	5			$	1			$	2			$	6			$	3				$	6			$	4
MSR asset value (b)	$	1.0			$	1.1			$	1.3			$	1.4			$	1.3
MSR capitalization value (in basis points) (b)	80				92				100				108				104
Servicing income: (in millions)
Servicing fees, net (c)	$	42			$	53			$	49			$	42			$	39				$	95			$	90
Mortgage servicing rights valuation, net of economic hedge	$	7			$	(9	)		$	(19	)		—				$	13				$	(2	)		$	22
Residential mortgage loan statistics
Loan origination volume (in billions)	$	2.9			$	1.7			$	1.6			$	2.1			$	2.0				$	4.6			$	3.7
Loan sale margin percentage	2.24		%		2.35		%		2.49		%		2.21		%		2.21		%			2.28		%		2.49		%
Percentage of originations represented by:
Purchase volume (d)	54		%		56		%		67		%		72		%		71		%			55		%		65		%
Refinance volume	46		%		44		%		33		%		28		%		29		%			45		%		35		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	56		%		57		%		55		%		55		%		54		%			56		%		54		%
Digital consumer customers (f)	69		%		68		%		67		%		66		%		65		%			69		%		65		%
Credit-related statistics
Nonperforming assets	$	1,074			$	1,109			$	1,126			$	1,145			$	1,141
Net charge-offs	$	120			$	132			$	112			$	96			$	112				$	252			$	212
Other statistics
ATMs	9,072				9,112				9,162				9,093				9,043
Branches (g)	2,321				2,347				2,372				2,388				2,404
Brokerage account client assets (in billions) (h)	$	52			$	51			$	47			$	51			$	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 quarterly averages, and net charge-offs, which are for the three months ended.

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

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

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

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

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

(h)	Includes cash and money market balances.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

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

	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
Dollars in millions	2019				2019				2018				2018				2018					2019				2018
Income Statement
Net interest income	$	917			$	898			$	930			$	925			$	900				$	1,815			$	1,782
Noninterest income	661				576				632				592				635					1,237				1,182
Total revenue	1,578				1,474				1,562				1,517				1,535					3,052				2,964
Provision for credit losses (benefit)	100				71				42				(13		)		15					171				56
Noninterest expense	698				686				687				698				668					1,384				1,321
Pretax earnings	780				717				833				832				852					1,497				1,587
Income taxes	178				165				182				190				200					343				372
Earnings	$	602			$	552			$	651			$	642			$	652				$	1,154			$	1,215
Average Balance Sheet
Loans held for sale	$	330			$	347			$	669			$	514			$	594				$	338			$	890
Loans
Commercial	$	113,702			$	108,641			$	106,082			$	103,474			$	102,722				$	111,186			$	101,767
Commercial real estate	26,224				25,971				26,183				26,650				26,715					26,098				26,723
Equipment lease financing	7,284				7,264				7,216				7,202				7,495					7,274				7,669
Total commercial lending	147,210				141,876				139,481				137,326				136,932					144,558				136,159
Consumer	16				20				22				32				39					18				58
Total loans	$	147,226			$	141,896			$	139,503			$	137,358			$	136,971				$	144,576			$	136,217
Total assets	$	163,897			$	157,169			$	156,997			$	153,897			$	153,619				$	160,551			$	152,769
Deposits
Noninterest-bearing demand	$	38,765			$	39,551			$	42,678			$	43,480			$	44,383				$	39,156			$	45,136
Money market	26,948				25,630				25,691				24,285				22,832					26,292				23,118
Other	24,811				23,374				23,423				20,343				18,589					24,097				18,590
Total deposits	$	90,524			$	88,555			$	91,792			$	88,108			$	85,804				$	89,545			$	86,844
Performance Ratios
Return on average assets	1.47		%		1.42		%		1.65		%		1.66		%		1.70		%			1.45		%		1.60		%
Noninterest income to total revenue	42		%		39		%		40		%		39		%		41		%			41		%		40		%
Efficiency	44		%		47		%		44		%		46		%		44		%			45		%		45		%
Other Information
Consolidated revenue from:
Treasury Management (b)	$	467			$	445			$	461			$	453			$	446				$	912			$	865
Capital Markets (b)	$	313			$	246			$	272			$	275			$	283				$	559			$	541
Commercial mortgage banking activities
Commercial mortgage loans held for sale (c)	$	20			$	15			$	29			$	26			$	38				$	35			$	52
Commercial mortgage loan servicing income (d)	65				54				68				64				60					119				115
Commercial mortgage servicing rights valuation, net of economic hedge (e)	11				5				1				2				20					16				24
Total	$	96			$	74			$	98			$	92			$	118				$	170			$	191
MSR asset value (f)	$	630			$	681			$	726			$	766			$	748
Average Loans by C&IB business (g)
Corporate Banking	$	74,366			$	71,089			$	67,567			$	66,560			$	66,314				$	72,736			$	65,933
Real Estate	37,143				36,357				38,141				37,463				37,419					36,752				37,336
Business Credit	22,877				21,728				21,431				20,928				20,630					22,306				20,414
Commercial Banking	8,080				8,118				8,031				8,112				8,174					8,099				8,146
Other	4,760				4,604				4,333				4,295				4,434					4,683				4,389
Total average loans	$	147,226			$	141,896			$	139,503			$	137,358			$	136,971				$	144,576			$	136,218
Credit-related statistics
Nonperforming assets (f)	$	497			$	388			$	377			$	355			$	385
Net charge-offs	$	23			$	5			$	2			$	1			$	(2	)			$	28			$	7

 

(a)	See note (a) on page 11.

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

(c)	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.

(d)	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.

(e)	Includes amounts reported in corporate service fees.

(f)	Presented as of period end.

(g)	As a result of our first quarter 2019 C&IB business realignment, average loans previously reported as Equipment Finance were reclassified to other C&IB businesses for all periods presented.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

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

	Three months ended																					Six months ended
	June 30				March 31				December 31				September 30				June 30					June 30				June 30
Dollars in millions, except as noted	2019				2019				2018				2018				2018					2019				2018
Income Statement
Net interest income	$	68			$	70			$	70			$	71			$	72				$	138			$	146
Noninterest income	286				217				216				228				222					503				448
Total revenue	354				287				286				299				294					641				594
Provision for credit losses (benefit)	—				(1		)		—				2				7					(1		)		—
Noninterest expense	249				230				232				225				231					479				456
Pretax earnings	105				58				54				72				56					163				138
Income taxes	25				13				12				17				13					38				33
Earnings	$	80			$	45			$	42			$	55			$	43				$	125			$	105
Average Balance Sheet
Loans
Consumer	$	4,216			$	4,362			$	4,522			$	4,623			$	4,698				$	4,289			$	4,741
Commercial and commercial real estate	731				752				705				727				742					741				738
Residential mortgage	1,792				1,723				1,666				1,605				1,561					1,758				1,539
Total loans	$	6,739			$	6,837			$	6,893			$	6,955			$	7,001				$	6,788			$	7,018
Total assets	$	7,150			$	7,259			$	7,328			$	7,397			$	7,469				$	7,204			$	7,484
Deposits
Noninterest-bearing demand	$	1,347			$	1,388			$	1,469			$	1,440			$	1,459				$	1,368			$	1,462
Interest-bearing demand	2,891				3,076				3,055				3,253				3,448					2,983				3,494
Money market	1,785				2,036				2,001				2,112				2,332					1,910				2,454
Savings	5,875				5,723				5,294				4,955				4,690					5,799				4,651
Other	797				697				634				537				382					747				345
Total deposits	$	12,695			$	12,920			$	12,453			$	12,297			$	12,311				$	12,807			$	12,406
Performance Ratios
Return on average assets	4.49		%		2.51		%		2.27		%		2.95		%		2.31		%			3.50		%		2.83		%
Noninterest income to total revenue	81		%		76		%		76		%		76		%		76		%			78		%		75		%
Efficiency	70		%		80		%		81		%		75		%		79		%			75		%		77		%
Other Information
Nonperforming assets (b)	$	45			$	48			$	46			$	51			$	51
Net charge-offs	—				$	1			$	1			$	1			$	1				$	1			$	7
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management	$	162			$	158			$	148			$	159			$	149
Nondiscretionary client assets under administration	132				130				124				134				130
Total	$	294			$	288			$	272			$	293			$	279
Discretionary client assets under management
Personal	$	99			$	95			$	87			$	97			$	92
Institutional	63				63				61				62				57
Total	$	162			$	158			$	148			$	159			$	149

 

(a)	See note (a) 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.