Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2019

(Unaudited)

---

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD 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 October 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 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.

---

THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Third 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

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Table 1: Consolidated Income Statement (Unaudited)

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions, except per share data	2019				2019				2019				2018				2018					2019				2018
Interest Income
Loans	$	2,678			$	2,672			$	2,602			$	2,555			$	2,452				$	7,952			$	7,025
Investment securities	617				629				620				608				584					1,866				1,653
Other	208				196				206				196				187					610				545
Total interest income	3,503				3,497				3,428				3,359				3,223					10,428				9,223
Interest Expense
Deposits	531				515				472				419				336					1,518				810
Borrowed funds	468				484				481				459				421					1,433				1,173
Total interest expense	999				999				953				878				757					2,951				1,983
Net interest income	2,504				2,498				2,475				2,481				2,466					7,477				7,240
Noninterest Income
Asset management	464				445				437				428				486					1,346				1,397
Consumer services	402				392				371				387				377					1,165				1,115
Corporate services	469				484				462				468				465					1,415				1,381
Residential mortgage	134				82				65				59				76					281				257
Service charges on deposits	178				171				168				192				186					517				522
Other (a)	342				367				308				325				301					1,017				880
Total noninterest income	1,989				1,941				1,811				1,859				1,891					5,741				5,552
Total revenue	4,493				4,439				4,286				4,340				4,357					13,218				12,792
Provision For Credit Losses	183				180				189				148				88					552				260
Noninterest Expense
Personnel	1,400				1,365				1,414				1,348				1,413					4,179				4,123
Occupancy	206				212				215				202				195					633				616
Equipment	291				298				273				285				264					862				818
Marketing	76				83				65				84				71					224				201
Other	650				653				611				658				665					1,914				1,961
Total noninterest expense	2,623				2,611				2,578				2,577				2,608					7,812				7,719
Income before income taxes and noncontrolling interests	1,687				1,648				1,519				1,615				1,661					4,854				4,813
Income taxes	295				274				248				264				261					817				818
Net income	1,392				1,374				1,271				1,351				1,400					4,037				3,995
Less: Net income attributable to noncontrolling interests	13				12				10				14				11					35				31
Preferred stock dividends (b)	63				55				63				55				63					181				181
Preferred stock discount accretion and redemptions	1				1				1				1				1					3				3
Net income attributable to common shareholders	$	1,315			$	1,306			$	1,197			$	1,281			$	1,325				$	3,818			$	3,780
Earnings Per Common Share
Basic	$	2.95			$	2.89			$	2.62			$	2.77			$	2.84				$	8.45			$	8.03
Diluted	$	2.94			$	2.88			$	2.61			$	2.75			$	2.82				$	8.42			$	7.96
Average Common Shares Outstanding
Basic	444				451				455				461				465					450				469
Diluted	445				452				456				463				467					451				472
Efficiency	58		%		59		%		60		%		59		%		60		%			59		%		60		%
Noninterest income to total revenue	44		%		44		%		42		%		43		%		43		%			43		%		43		%
Effective tax rate (c)	17.5		%		16.6		%		16.3		%		16.3		%		15.7		%			16.8		%		17.0		%

(a)	Includes net gains (losses) on sales of securities of $3 million, $20 million, $13 million, $5 million, and $(1) million for the quarters ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively, and $36 million and $(5) million for the nine months ended September 30, 2019 and September 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.

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

	September 30				June 30				March 31				December 31				September 30
In millions, except par value	2019				2019				2019				2018				2018
Assets
Cash and due from banks	$	5,671			$	5,416			$	5,062			$	5,608			$	5,248
Interest-earning deposits with banks (a)	19,036				18,362				15,261				10,893				19,800
Loans held for sale (b)	1,872				1,144				686				994				1,108
Investment securities – available for sale	69,057				69,355				65,051				63,389				61,211
Investment securities – held to maturity	18,826				18,948				18,818				19,312				19,593
Loans (b)	237,377				237,215				232,293				226,245				223,053
Allowance for loan and lease losses	(2,738		)		(2,721		)		(2,692		)		(2,629		)		(2,584		)
Net loans	234,639				234,494				229,601				223,616				220,469
Equity investments (c)	13,325				13,001				12,567				12,894				12,446
Mortgage servicing rights	1,483				1,627				1,812				1,983				2,136
Goodwill	9,233				9,221				9,218				9,218				9,218
Other (b)	35,774				34,193				34,761				34,408				28,851
Total assets	$	408,916			$	405,761			$	392,837			$	382,315			$	380,080
Liabilities
Deposits
Noninterest-bearing	$	74,077			$	69,867			$	71,606			$	73,960			$	74,736
Interest-bearing	211,506				203,393				199,615				193,879				190,148
Total deposits	285,583				273,260				271,221				267,839				264,884
Borrowed funds
Federal Home Loan Bank borrowings	21,901				29,376				20,501				21,501				20,036
Bank notes and senior debt	27,148				27,694				25,598				25,018				26,676
Subordinated debt	5,473				5,406				5,977				5,895				5,764
Other (b)	6,832				6,549				7,784				5,005				5,479
Total borrowed funds	61,354				69,025				59,860				57,419				57,955
Allowance for unfunded loan commitments and letters of credit	304				291				279				285				288
Accrued expenses and other liabilities	12,220				13,804				12,902				9,002				9,851
Total liabilities	359,461				356,380				344,262				334,545				332,978
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares	2,711				2,711				2,711				2,711				2,710
Capital surplus	16,297				16,248				16,173				16,277				16,299
Retained earnings	41,413				40,616				39,742				38,919				38,080
Accumulated other comprehensive income (loss)	837				631				(5		)		(725		)		(1,260		)
Common stock held in treasury at cost:103, 95, 90, 85 and 80 shares	(11,838		)		(10,866		)		(10,085		)		(9,454		)		(8,771		)
Total shareholders’ equity	49,420				49,340				48,536				47,728				47,058
Noncontrolling interests	35				41				39				42				44
Total equity	49,455				49,381				48,575				47,770				47,102
Total liabilities and equity	$	408,916			$	405,761			$	392,837			$	382,315			$	380,080

 

(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $18.8 billion, $18.1 billion, $15.0 billion, $10.5 billion and $19.6 billion as of September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2019 Form 10-Q included, and our third 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.

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Table 3: Average Consolidated Balance Sheet (Unaudited) (a)
	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions	2019				2019				2019				2018				2018					2019				2018
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	32,926			$	30,169			$	29,002			$	28,375			$	28,241				$	30,714			$	26,746
Non-agency	1,716				1,801				1,890				1,993				2,128					1,802				2,265
Commercial mortgage-backed	5,728				5,545				5,368				4,830				4,366					5,549				4,449
Asset-backed	5,208				5,395				5,136				5,186				5,459					5,247				5,260
U.S. Treasury and government agencies	17,573				18,815				18,240				18,443				16,757					18,207				15,603
Other	3,053				3,237				3,671				3,920				3,996					3,316				4,113
Total securities available for sale	66,204				64,962				63,307				62,747				60,947					64,835				58,436
Securities held to maturity
Residential mortgage-backed	15,768				15,350				15,627				15,941				16,292					15,582				15,578
Commercial mortgage-backed	544				570				600				648				715					571				807
Asset-backed	79				172				177				185				189					143				194
U.S. Treasury and government agencies	769				765				760				756				752					765				747
Other	1,802				1,822				1,847				1,856				1,871					1,823				1,894
Total securities held to maturity	18,962				18,679				19,011				19,386				19,819					18,884				19,220
Total investment securities	85,166				83,641				82,318				82,133				80,766					83,719				77,656
Loans
Commercial	125,356				124,441				119,345				116,596				113,883					123,069				112,907
Commercial real estate	28,855				28,423				28,147				28,382				28,860					28,477				28,883
Equipment lease financing	7,272				7,283				7,263				7,216				7,202					7,273				7,512
Consumer	55,702				55,202				54,996				55,331				55,449					55,303				55,474
Residential real estate	20,497				19,496				18,794				18,405				17,948					19,602				17,609
Total loans	237,682				234,845				228,545				225,930				223,342					233,724				222,385
Interest-earning deposits with banks (b)	15,632				13,469				15,017				16,691				19,151					14,708				21,921
Other interest-earning assets	14,094				13,145				11,068				10,431				7,114					12,780				7,305
Total interest-earning assets	352,574				345,100				336,948				335,185				330,373					344,931				329,267
Noninterest-earning assets	54,135				51,862				48,950				47,906				47,504					51,668				47,332
Total assets	$	406,709			$	396,962			$	385,898			$	383,091			$	377,877				$	396,599			$	376,599
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	56,271			$	54,814			$	54,702			$	55,228			$	55,507				$	55,268			$	56,732
Demand	65,444				64,431				63,480				62,207				60,138					64,459				60,058
Savings	64,054				61,949				58,821				55,065				52,919					61,627				50,845
Time deposits	21,173				20,040				18,813				18,743				17,756					20,017				17,081
Total interest-bearing deposits	206,942				201,234				195,816				191,243				186,320					201,371				184,716
Borrowed funds
Federal Home Loan Bank borrowings	25,883				22,681				21,491				20,683				21,516					23,368				21,067
Bank notes and senior debt	27,409				26,865				25,418				26,380				27,301					26,571				28,352
Subordinated debt	5,189				5,526				5,883				5,874				5,253					5,530				5,096
Other	5,452				7,263				6,991				5,847				5,768					6,564				4,966
Total borrowed funds	63,933				62,335				59,783				58,784				59,838					62,033				59,481
Total interest-bearing liabilities	270,875				263,569				255,599				250,027				246,158					263,404				244,197
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	72,149				71,648				71,402				75,228				76,155					71,736				76,666
Accrued expenses and other liabilities	14,529				13,122				11,242				10,833				8,853					12,975				8,971
Equity	49,156				48,623				47,655				47,003				46,711					48,484				46,765
Total liabilities and equity	$	406,709			$	396,962			$	385,898			$	383,091			$	377,877				$	396,599			$	376,599

(a)	Calculated using average daily balances.

(b)

Amounts include average balances held with the Federal Reserve Bank of Cleveland of $15.3 billion, $13.2 billion, $14.7 billion, $16.4 billion and $18.8 billion for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively, and $14.4 billion and $21.6 billion for the nine months ended September 30, 2019 and September 30 2018, respectfully.

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended																Nine months ended
	September 30			June 30			March 31			December 31			September 30				September 30			September 30
	2019			2019			2019			2018			2018				2019			2018
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.70	%		2.93	%		2.94	%		2.86	%		2.76	%			2.85	%		2.68	%
Non-agency	8.89	%		7.99	%		7.31	%		7.08	%		7.18	%			8.04	%		6.54	%
Commercial mortgage-backed	2.97	%		3.06	%		3.13	%		2.99	%		2.72	%			3.05	%		2.75	%
Asset-backed	3.31	%		3.34	%		3.35	%		3.24	%		3.37	%			3.33	%		3.12	%
U.S. Treasury and government agencies	2.44	%		2.48	%		2.49	%		2.41	%		2.25	%			2.47	%		2.20	%
Other	3.41	%		3.33	%		3.34	%		3.37	%		3.28	%			3.36	%		3.50	%
Total securities available for sale	2.90	%		3.01	%		3.01	%		2.93	%		2.86	%			2.97	%		2.80	%
Securities held to maturity
Residential mortgage-backed	2.78	%		2.93	%		3.01	%		2.98	%		2.92	%			2.91	%		2.88	%
Commercial mortgage-backed	3.68	%		3.57	%		3.53	%		3.68	%		3.71	%			3.59	%		3.73	%
Asset-backed	5.48	%		3.92	%		3.83	%		3.76	%		3.65	%			4.18	%		3.34	%
U.S. Treasury and government agencies	2.86	%		2.84	%		2.81	%		2.86	%		2.85	%			2.84	%		2.83	%
Other	4.40	%		4.44	%		4.40	%		4.41	%		4.42	%			4.41	%		4.42	%
Total securities held to maturity	2.98	%		3.10	%		3.16	%		3.14	%		3.10	%			3.08	%		3.07	%
Total investment securities	2.91	%		3.03	%		3.05	%		2.98	%		2.92	%			3.00	%		2.87	%
Loans
Commercial	4.06	%		4.22	%		4.33	%		4.17	%		4.06	%			4.20	%		3.93	%
Commercial real estate	4.40	%		4.43	%		4.37	%		4.42	%		4.10	%			4.40	%		3.98	%
Equipment lease financing	3.82	%		4.06	%		3.93	%		3.77	%		3.78	%			3.94	%		3.54	%
Consumer	5.61	%		5.56	%		5.54	%		5.32	%		5.17	%			5.57	%		5.00	%
Residential real estate	4.21	%		4.27	%		4.29	%		4.41	%		4.45	%			4.25	%		4.40	%
Total loans	4.47	%		4.56	%		4.61	%		4.49	%		4.36	%			4.54	%		4.23	%
Interest-earning deposits with banks	2.17	%		2.38	%		2.43	%		2.25	%		1.97	%			2.32	%		1.74	%
Other interest-earning assets	3.49	%		3.55	%		4.14	%		3.93	%		5.19	%			3.70	%		4.74	%
Total yield on interest-earning assets	3.95	%		4.06	%		4.11	%		3.99	%		3.89	%			4.04	%		3.75	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	1.14	%		1.17	%		1.15	%		.99	%		.80	%			1.15	%		.66	%
Demand	.58	%		.55	%		.52	%		.46	%		.32	%			.55	%		.26	%
Savings	1.14	%		1.19	%		1.13	%		1.04	%		.92	%			1.15	%		.75	%
Time deposits	1.66	%		1.67	%		1.55	%		1.38	%		1.18	%			1.63	%		1.02	%
Total interest-bearing deposits	1.02	%		1.03	%		.98	%		.87	%		.71	%			1.01	%		.59	%
Borrowed funds
Federal Home Loan Bank borrowings	2.48	%		2.69	%		2.77	%		2.57	%		2.42	%			2.63	%		2.14	%
Bank notes and senior debt	3.21	%		3.36	%		3.50	%		3.31	%		2.92	%			3.35	%		2.76	%
Subordinated debt	3.53	%		4.17	%		4.50	%		4.44	%		4.10	%			4.09	%		4.16	%
Other	2.43	%		2.44	%		2.44	%		2.36	%		2.11	%			2.44	%		2.04	%
Total borrowed funds	2.87	%		3.08	%		3.21	%		3.07	%		2.76	%			3.05	%		2.60	%
Total rate on interest-bearing liabilities	1.45	%		1.51	%		1.50	%		1.38	%		1.21	%			1.48	%		1.08	%
Interest rate spread	2.50	%		2.55	%		2.61	%		2.61	%		2.68	%			2.56	%		2.67	%
Benefit from use of noninterest bearing sources (b)	.34			.36			.37			.35			.31				.35			.28
Net interest margin	2.84	%		2.91	%		2.98	%		2.96	%		2.99	%			2.91	%		2.95	%

(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 September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018 were $25 million, $27 million, $27 million, $28 million and $29 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2019 and September 30, 2018 were $79 million and $87 million, respectively.

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

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Table 5: Per Share Related Information (Unaudited)
	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions, except per share data	2019				2019				2019				2018				2018					2019				2018
Basic
Net income	$	1,392			$	1,374			$	1,271			$	1,351			$	1,400				$	4,037			$	3,995
Less:
Net income attributable to noncontrolling interests	13				12				10				14				11					35				31
Preferred stock dividends (a)	63				55				63				55				63					181				181
Preferred stock discount accretion and redemptions	1				1				1				1				1					3				3
Net income attributable to common shareholders	1,315				1,306				1,197				1,281				1,325					3,818				3,780
Less: Dividends and undistributed earnings allocated     to nonvested restricted shares	6				4				5				5				6					15				16
Net income attributable to basic common shares	$	1,309			$	1,302			$	1,192			$	1,276			$	1,319				$	3,803			$	3,764
Basic weighted-average common shares outstanding	444				451				455				461				465					450				469
Basic earnings per common share	$	2.95			$	2.89			$	2.62			$	2.77			$	2.84				$	8.45			$	8.03
Diluted
Net income attributable to basic common shares	$	1,309			$	1,302			$	1,192			$	1,276			$	1,319				$	3,803			$	3,764
Less: Impact of BlackRock earnings per share dilution	2				2				3				2				2					7				7
Net income attributable to diluted common shares	$	1,307			$	1,300			$	1,189			$	1,274			$	1,317				$	3,796			$	3,757
Basic weighted-average common shares outstanding	444				451				455				461				465					450				469
Dilutive potential common shares	1				1				1				2				2					1				3
Diluted weighted-average common shares outstanding	445				452				456				463				467					451				472
Diluted earnings per common share	$	2.94			$	2.88			$	2.61			$	2.75			$	2.82				$	8.42			$	7.96

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

Table 6: Details of Loans (Unaudited)

		September 30				June 30				March 31				December 31				September 30
In millions		2019				2019				2019				2018				2018
Commercial lending
Commercial
Manufacturing		$	21,846			$	22,191			$	22,575			$	21,207			$	21,272
Retail/wholesale trade		21,761				22,280				21,655				20,850				19,689
Service providers		16,189				15,387				15,266				14,869				14,386
Real estate related (a)		12,294				12,264				12,287				12,312				12,539
Financial services		10,437				11,916				10,475				9,500				9,441
Health care		8,137				8,594				8,731				8,886				9,217
Transportation and warehousing		7,216				6,588				6,744				5,781				5,715
Other industries		26,134				26,404				25,260				23,429				21,412
Total commercial		124,014				125,624				122,993				116,834				113,671
Commercial real estate		28,884				28,570				28,101				28,140				28,563
Equipment lease financing		7,290				7,409				7,348				7,308				7,214
Total commercial lending		160,188				161,603				158,442				152,282				149,448
Consumer lending
Home equity		24,971				25,132				25,500				26,123				26,628
Residential real estate		21,082				20,092				19,107				18,657				18,203
Automobile		16,004				15,612				14,707				14,419				14,309
Credit card		6,815				6,511				6,267				6,357				5,979
Education		3,461				3,555				3,707				3,822				3,954
Other consumer		4,856				4,710				4,563				4,585				4,532
Total consumer lending		77,189				75,612				73,851				73,963				73,605
Total loans		$	237,377			$	237,215			$	232,293			$	226,245			$	223,053

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

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Allowance for Loan and Lease Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses

		September 30				June 30				March 31				December 31				September 30
Three months ended - dollars in millions		2019				2019				2019				2018				2018
Beginning balance		$	2,721			$	2,692			$	2,629			$	2,584			$	2,581
Gross charge-offs:
Commercial		(41		)		(50		)		(25		)		(30		)		(26		)
Commercial real estate		(11		)		(2		)		(3		)
Equipment lease financing		(2		)		(1		)		(3		)		(2		)		(2		)
Home equity		(11		)		(18		)		(23		)		(25		)		(24		)
Residential real estate		(1		)		(2		)		(2		)		3				(3		)
Automobile		(71		)		(54		)		(58		)		(54		)		(40		)
Credit card		(61		)		(65		)		(67		)		(56		)		(52		)
Education		(7		)		(7		)		(6		)		(7		)		(7		)
Other consumer		(36		)		(28		)		(28		)		(29		)		(24		)
Total gross charge-offs		(241		)		(227		)		(215		)		(200		)		(178		)
Recoveries:
Commercial		14				17				14				17				18
Commercial real estate		3				2				3				6				4
Equipment lease financing		2				2				2				2				1
Home equity		20				18				18				31				23
Residential real estate		4				4				3				3				8
Automobile		30				29				26				21				21
Credit card		7				7				7				6				6
Education		2				2				2				2				2
Other consumer		4				4				4				5				4
Total recoveries		86				85				79				93				87
Net (charge-offs) / recoveries:
Commercial		(27		)		(33		)		(11		)		(13		)		(8		)
Commercial real estate		(8		)										6				4
Equipment lease financing						1				(1		)						(1		)
Home equity		9								(5		)		6				(1		)
Residential real estate		3				2				1				6				5
Automobile		(41		)		(25		)		(32		)		(33		)		(19		)
Credit card		(54		)		(58		)		(60		)		(50		)		(46		)
Education		(5		)		(5		)		(4		)		(5		)		(5		)
Other consumer		(32		)		(24		)		(24		)		(24		)		(20		)
Total net (charge-offs)		(155		)		(142		)		(136		)		(107		)		(91		)
Provision for credit losses		183				180				189				148				88
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit		(13		)		(12		)		6				3				1
Other		2				3				4				1				5
Ending balance		$	2,738			$	2,721			$	2,692			$	2,629			$	2,584
Supplemental Information
Net charge-offs to average loans (annualized)		.26		%		.24		%		.24		%		.19		%		.16		%
Allowance for loan and lease losses to total loans		1.15		%		1.15		%		1.16		%		1.16		%		1.16		%
Commercial lending net charge-offs		$	(35	)		$	(32	)		$	(12	)		$	(7	)		$	(5	)
Consumer lending net charge-offs		(120		)		(110		)		(124		)		(100		)		(86		)
Total net charge-offs		$	(155	)		$	(142	)		$	(136	)		$	(107	)		$	(91	)
Net charge-offs to average loans (annualized)
Commercial lending		.09		%		.08		%		.03		%		.02		%		.01		%
Consumer lending		.62		%		.59		%		.68		%		.54		%		.46		%

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type

		September 30				June 30				March 31				December 31				September 30
Dollars in millions		2019				2019				2019				2018				2018
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade		$	61			$	42			$	35			$	38			$	47
Manufacturing		109				88				88				54				43
Service providers		55				53				52				50				53
Real estate related (a)		33				19				16				17				18
Health care		17				15				19				20				14
Transportation and warehousing		13				21				8				8				7
Other industries		203				203				151				159				138
Total commercial		491				441				369				346				320
Commercial real estate		75				93				54				75				68
Equipment lease financing		10				6				7				11				5
Total commercial lending		576				540				430				432				393
Consumer lending (b)
Home equity		685				712				763				797				828
Residential real estate		325				339				339				350				363
Automobile		128				118				107				100				95
Credit card		9				8				7				7				6
Other consumer		5				7				7				8				9
Total consumer lending		1,152				1,184				1,223				1,262				1,301
Total nonperforming loans (c)		1,728				1,724				1,653				1,694				1,694
OREO and foreclosed assets		119				126				132				114				131
Total nonperforming assets		$	1,847			$	1,850			$	1,785			$	1,808			$	1,825
Nonperforming loans to total loans		.73		%		.73		%		.71		%		.75		%		.76		%
Nonperforming assets to total loans, OREO and foreclosed assets		.78		%		.78		%		.77		%		.80		%		.82		%
Nonperforming assets to total assets		.45		%		.46		%		.45		%		.47		%		.48		%
Allowance for loan and lease losses to nonperforming loans		158		%		158		%		163		%		155		%		153		%

(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.

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Nonperforming Assets (Unaudited) (Continued)

Table 9: Change in Nonperforming Assets

		July 1, 2019				April 1, 2019				January 1, 2019				October 1, 2018				July 1, 2018 -
In millions		September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018				September 30, 2018
Beginning balance		$	1,850			$	1,785			$	1,808			$	1,825			$	1,854
New nonperforming assets		290				408				287				325				260
Charge-offs and valuation adjustments		(112		)		(170		)		(164		)		(148		)		(126		)
Principal activity, including paydowns and payoffs		(122		)		(101		)		(92		)		(97		)		(99		)
Asset sales and transfers to loans held for sale		(34		)		(27		)		(13		)		(38		)		(38		)
Returned to performing status		(25		)		(45		)		(41		)		(59		)		(26		)
Ending balance		$	1,847			$	1,850			$	1,785			$	1,808			$	1,825

Table 10: Largest Individual Nonperforming Assets (a)

September 30, 2019 - Dollars in millions
Ranking		Outstandings				Industry
1		$	33			Information
2		32				Manufacturing
3		29				Retail Trade
4		29				Real Estate and Rental and Leasing
5		29				Mining, Quarrying, and Oil and Gas Extraction
6		25				Real Estate and Rental and Leasing
7		21				Mining, Quarrying, and Oil and Gas Extraction
8		15				Construction
9		15				Service Providers
10		15				Manufacturing
Total		$	243
As a percent of total nonperforming assets						13%

 

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

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

Accruing Loans Past Due (Unaudited)

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

		Amount																				Percent of Total Outstandings
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2019				2019				2019				2018				2018				2019			2019			2019			2018			2018
Commercial		$	82			$	105			$	80			$	82			$	60			.07	%		.08	%		.07	%		.07	%		.05	%
Commercial real estate		3				9				43				6				8				.01	%		.03	%		.15	%		.02	%		.03	%
Equipment lease financing		6				7				84				56				29				.08	%		.09	%		1.14	%		.77	%		.40	%
Home equity		53				56				59				66				77				.21	%		.22	%		.23	%		.25	%		.29	%
Residential real estate
Non government insured		76				80				91				75				70				.36	%		.40	%		.48	%		.40	%		.38	%
Government insured		53				54				62				60				60				.25	%		.27	%		.32	%		.32	%		.33	%
Automobile		145				119				97				113				104				.91	%		.76	%		.66	%		.78	%		.73	%
Credit card		56				47				45				46				45				.82	%		.72	%		.72	%		.72	%		.75	%
Education
Non government insured		8				7				9				10				10				.23	%		.20	%		.24	%		.26	%		.25	%
Government insured		48				53				54				59				71				1.39	%		1.49	%		1.46	%		1.54	%		1.80	%
Other consumer		17				13				10				12				17				.35	%		.28	%		.22	%		.26	%		.38	%
Total		$	547			$	550			$	634			$	585			$	551			.23	%		.23	%		.27	%		.26	%		.25	%

 

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

		Amount																				Percent of Total Outstandings
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2019				2019				2019				2018				2018				2019			2019			2019			2018			2018
Commercial		$	49			$	33			$	25			$	54			$	35			.04	%		.03	%		.02	%		.05	%		.03	%
Commercial real estate		3				1				1				3				3				.01	%		.00	%		.00	%		.01	%		.01	%
Equipment lease financing		4				3				5				12				16				.05	%		.04	%		.07	%		.16	%		.22	%
Home equity		24				20				21				25				30				.10	%		.08	%		.08	%		.10	%		.11	%
Residential real estate
Non government insured		20				20				13				17				16				.09	%		.10	%		.07	%		.09	%		.09	%
Government insured		57				55				49				56				51				.27	%		.27	%		.26	%		.30	%		.28	%
Automobile		36				29				26				29				25				.22	%		.19	%		.18	%		.20	%		.17	%
Credit card		33				29				28				29				28				.48	%		.45	%		.45	%		.46	%		.47	%
Education
Non government insured		5				4				5				4				6				.14	%		.11	%		.13	%		.10	%		.15	%
Government insured		30				32				33				37				42				.87	%		.90	%		.89	%		.97	%		1.06	%
Other consumer		8				9				6				5				6				.16	%		.19	%		.13	%		.11	%		.13	%
Total		$	269			$	235			$	212			$	271			$	258			.11	%		.10	%		.09	%		.12	%		.12	%

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

		Amount																				Percent of Total Outstandings
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2019				2019				2019				2018				2018				2019			2019			2019			2018			2018
Commercial		$	64			$	59			$	71			$	52			$	67			.05	%		.05	%		.06	%		.04	%		.06	%
Residential real estate
Non government insured		15				13				18				19				15				.07	%		.06	%		.09	%		.10	%		.08	%
Government insured		287				293				305				344				342				1.36	%		1.46	%		1.60	%		1.84	%		1.88	%
Automobile		11				8				10				12				8				.07	%		.05	%		.07	%		.08	%		.06	%
Credit card		57				48				53				53				48				.84	%		.74	%		.85	%		.83	%		.80	%
Education
Non government insured		3				3				3				3				3				.09	%		.08	%		.08	%		.08	%		.08	%
Government insured		87				92				123				138				129				2.51	%		2.59	%		3.32	%		3.61	%		3.26	%
Other consumer		8				8				7				8				7				.16	%		.17	%		.15	%		.17	%		.15	%
Total		$	532			$	524			$	590			$	629			$	619			.22	%		.22	%		.25	%		.28	%		.28	%

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

---

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 expansion 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 September 30, 2019, our economic interest in BlackRock was 22%.

Table 14: Period End Employees

	September 30			June 30			March 31			December 31			September 30
	2019			2019			2019			2018			2018
Full-time employees
Retail Banking	28,279			28,671			28,992			29,180			29,296
Other full-time employees	21,701			21,571			21,652			21,748			21,768
Total full-time employees	49,980			50,242			50,644			50,928			51,064
Part-time employees
Retail Banking	1,823			2,037			1,887			1,974			2,071
Other part-time employees	153			518			180			161			187
Total part-time employees	1,976			2,555			2,067			2,135			2,258
Total	51,956			52,797			52,711			53,063			53,322

 

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

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

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions	2019				2019				2019				2018				2018					2019				2018
Income
Retail Banking	$	347			$	325			$	264			$	313			$	228				$	936			$	751
Corporate & Institutional Banking	645				602				552				651				642					1,799				1,857
Asset Management Group	46				80				45				42				55					171				160
Other, including BlackRock (b)	354				367				410				345				475					1,131				1,227
Net income	$	1,392			$	1,374			$	1,271			$	1,351			$	1,400				$	4,037			$	3,995
Revenue
Retail Banking	$	2,137			$	2,033			$	1,944			$	2,015			$	1,927				$	6,114			$	5,735
Corporate & Institutional Banking	1,584				1,578				1,474				1,562				1,517					4,636				4,481
Asset Management Group	286				354				287				286				299					927				893
Other, including BlackRock (b)	486				474				581				477				614					1,541				1,683
Total revenue	$	4,493			$	4,439			$	4,286			$	4,340			$	4,357				$	13,218			$	12,792

 

(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.

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Table 16: Retail Banking (Unaudited) (a)

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions	2019				2019				2019				2018				2018					2019				2018
Income Statement
Net interest income	$	1,393			$	1,376			$	1,349			$	1,319			$	1,305				$	4,118			$	3,800
Noninterest income	744				657				595				696				622					1,996				1,935
Total revenue	2,137				2,033				1,944				2,015				1,927					6,114				5,735
Provision for credit losses	147				81				128				119				113					356				254
Noninterest expense	1,536				1,527				1,468				1,487				1,514					4,531				4,491
Pretax earnings	454				425				348				409				300					1,227				990
Income taxes	107				100				84				96				72					291				239
Earnings	$	347			$	325			$	264			$	313			$	228				$	936			$	751
Average Balance Sheet
Loans held for sale	$	760			$	554			$	441			$	559			$	704				$	586			$	662
Loans
Consumer
Home equity	$	22,434			$	22,620			$	22,990			$	23,407			$	23,777				$	22,679			$	24,188
Automobile	15,761				15,222				14,608				14,375				14,169					15,201				13,643
Education	3,538				3,665				3,816				3,918				4,039					3,672				4,208
Credit cards	6,624				6,376				6,204				6,112				5,889					6,403				5,746
Other	2,309				2,179				2,068				1,985				1,857					2,187				1,794
Total consumer	50,666				50,062				49,686				49,797				49,731					50,142				49,579
Commercial and commercial real estate	10,379				10,481				10,461				10,339				10,209					10,440				10,397
Residential mortgage	16,630				15,737				15,034				14,637				14,153					15,806				13,767
Total loans	$	77,675			$	76,280			$	75,181			$	74,773			$	74,093				$	76,388			$	73,743
Total assets	$	93,222			$	92,350			$	91,255			$	91,164			$	89,963				$	92,282			$	89,259
Deposits
Noninterest-bearing demand	$	32,092			$	31,516			$	30,389			$	31,011			$	31,159				$	31,338			$	30,555
Interest-bearing demand	41,420				42,735				42,477				41,655				41,778					42,207				42,172
Money market	24,807				25,799				26,773				27,256				28,876					25,786				30,656
Savings	57,752				56,075				53,100				49,771				47,964					55,659				46,091
Certificates of deposit	12,766				12,704				12,381				12,153				11,974					12,619				11,957
Total deposits	$	168,837			$	168,829			$	165,120			$	161,846			$	161,751				$	167,609			$	161,431
Performance Ratios
Return on average assets	1.48		%		1.41		%		1.17		%		1.36		%		1.01		%			1.36		%		1.12		%
Noninterest income to total revenue	35		%		32		%		31		%		35		%		32		%			33		%		34		%
Efficiency	72		%		75		%		76		%		74		%		79		%			74		%		78		%

 

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

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Retail Banking (Unaudited) (Continued)

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions, except as noted	2019				2019				2019				2018				2018					2019				2018
Supplemental Noninterest Income     Information
Consumer services	$	305			$	299			$	277			$	291			$	284				$	881			$	837
Brokerage	$	92			$	86			$	89			$	90			$	86				$	267			$	260
Residential mortgage	$	134			$	82			$	65			$	59			$	76				$	281			$	257
Service charges on deposits	$	178			$	164			$	162			$	185			$	179				$	504			$	503
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	123			$	124			$	123			$	125			$	127
Serviced portfolio acquisitions	$	3			$	5			$	1			$	2			$	6				$	9			$	10
MSR asset value (b)	$	0.9			$	1.0			$	1.1			$	1.3			$	1.4
MSR capitalization value (in basis points) (b)	72				80				92				100				108
Servicing income: (in millions)
Servicing fees, net (c)	$	44			$	42			$	53			$	49			$	42				$	139			$	132
Mortgage servicing rights valuation, net of economic hedge	$	40			$	7			$	(9	)		$	(19	)		$	—				$	38			$	22
Residential mortgage loan statistics
Loan origination volume (in billions)	$	3.4			$	2.9			$	1.7			$	1.6			$	2.1				$	8.0			$	5.8
Loan sale margin percentage	2.59		%		2.24		%		2.35		%		2.49		%		2.21		%			2.41		%		2.39		%
Percentage of originations represented by:
Purchase volume (d)	44		%		54		%		56		%		67		%		72		%			50		%		67		%
Refinance volume	56		%		46		%		44		%		33		%		28		%			50		%		33		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	58		%		56		%		57		%		55		%		55		%			57		%		54		%
Digital consumer customers (f)	70		%		69		%		68		%		67		%		66		%			69		%		65		%
Credit-related statistics
Nonperforming assets	$	1,056			$	1,074			$	1,109			$	1,126			$	1,145
Net charge-offs	$	128			$	120			$	132			$	112			$	96				$	380			$	308
Other statistics
ATMs	9,102				9,072				9,112				9,162				9,093
Branches (g)	2,310				2,321				2,347				2,372				2,388
Brokerage account client assets (in billions) (h)	$	52			$	52			$	51			$	47			$	51

(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.

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

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

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions	2019				2019				2019				2018				2018					2019				2018
Income Statement
Net interest income	$	930			$	917			$	898			$	930			$	925				$	2,745			$	2,707
Noninterest income	654				661				576				632				592					1,891				1,774
Total revenue	1,584				1,578				1,474				1,562				1,517					4,636				4,481
Provision for credit losses (benefit)	48				100				71				42				(13		)			219				43
Noninterest expense	703				698				686				687				698					2,087				2,019
Pretax earnings	833				780				717				833				832					2,330				2,419
Income taxes	188				178				165				182				190					531				562
Earnings	$	645			$	602			$	552			$	651			$	642				$	1,799			$	1,857
Average Balance Sheet
Loans held for sale	$	720			$	330			$	347			$	669			$	514				$	467			$	763
Loans
Commercial	$	114,701			$	113,702			$	108,641			$	106,082			$	103,474				$	112,371			$	102,342
Commercial real estate	26,570				26,224				25,971				26,183				26,650					26,257				26,699
Equipment lease financing	7,272				7,284				7,264				7,216				7,202					7,273				7,512
Total commercial lending	148,543				147,210				141,876				139,481				137,326					145,901				136,553
Consumer	13				16				20				22				32					16				49
Total loans	$	148,556			$	147,226			$	141,896			$	139,503			$	137,358				$	145,917			$	136,602
Total assets	$	168,193			$	163,897			$	157,169			$	156,997			$	153,987				$	163,126			$	153,149
Deposits
Noninterest-bearing demand	$	38,740			$	38,765			$	39,551			$	42,678			$	43,480				$	39,016			$	44,577
Money market	29,456				26,948				25,630				25,691				24,285					27,358				23,511
Other	27,623				24,811				23,374				23,423				20,343					25,285				19,182
Total deposits	$	95,819			$	90,524			$	88,555			$	91,792			$	88,108				$	91,659			$	87,270
Performance Ratios
Return on average assets	1.52		%		1.47		%		1.42		%		1.65		%		1.66		%			1.47		%		1.62		%
Noninterest income to total revenue	41		%		42		%		39		%		40		%		39		%			41		%		40		%
Efficiency	44		%		44		%		47		%		44		%		46		%			45		%		46		%
Other Information
Consolidated revenue from:
Treasury Management (b)	$	460			$	467			$	445			$	461			$	453				$	1,372			$	1,318
Capital Markets (b)	$	290			$	313			$	246			$	272			$	275				$	849			$	816
Commercial mortgage banking activities
Commercial mortgage loans held for sale (c)	$	38			$	20			$	15			$	29			$	26				$	73			$	78
Commercial mortgage loan servicing income (d)	71				65				54				68				64					190				179
Commercial mortgage servicing rights     valuation, net of economic hedge (e)	1				11				5				1				2					17				26
Total	$	110			$	96			$	74			$	98			$	92				$	280			$	283
MSR asset value (f)	$	595			$	630			$	681			$	726			$	766
Average Loans by C&IB business (g)
Corporate Banking	$	74,883			$	74,366			$	71,089			$	67,567			$	66,560				$	73,460			$	66,145
Real Estate	38,172				37,143				36,357				38,141				37,463					37,231				37,379
Business Credit	22,824				22,877				21,728				21,431				20,928					22,480				20,588
Commercial Banking	7,947				8,080				8,118				8,031				8,112					8,048				8,135
Other	4,730				4,760				4,604				4,333				4,295					4,698				4,355
Total average loans	$	148,556			$	147,226			$	141,896			$	139,503			$	137,358				$	145,917			$	136,602
Credit-related statistics
Nonperforming assets (f)	$	526			$	497			$	388			$	377			$	355
Net charge-offs	$	30			$	23			$	5			$	2			$	1				$	58			$	8

 

(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)	Represents 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.

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

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

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions, except as noted	2019				2019				2019				2018				2018					2019				2018
Income Statement
Net interest income	$	70			$	68			$	70			$	70			$	71				$	208			$	217
Noninterest income	216				286				217				216				228					719				676
Total revenue	286				354				287				286				299					927				893
Provision for credit losses (benefit)	(1		)		—				(1		)		—				2					(2		)		2
Noninterest expense	228				249				230				232				225					707				681
Pretax earnings	59				105				58				54				72					222				210
Income taxes	13				25				13				12				17					51				50
Earnings	$	46			$	80			$	45			$	42			$	55				$	171			$	160
Average Balance Sheet
Loans
Consumer	$	4,207			$	4,216			$	4,362			$	4,522			$	4,623				$	4,261			$	4,702
Commercial and commercial real estate	758				731				752				705				727					747				734
Residential mortgage	1,980				1,792				1,723				1,666				1,605					1,833				1,561
Total loans	$	6,945			$	6,739			$	6,837			$	6,893			$	6,955				$	6,841			$	6,997
Total assets	$	7,331			$	7,150			$	7,259			$	7,328			$	7,397				$	7,247			$	7,455
Deposits
Noninterest-bearing demand	$	1,299			$	1,347			$	1,388			$	1,469			$	1,440				$	1,344			$	1,455
Interest-bearing demand	3,393				2,891				3,076				3,055				3,253					3,121				3,413
Money market	1,740				1,785				2,036				2,001				2,112					1,852				2,339
Savings	6,302				5,875				5,723				5,294				4,955					5,969				4,754
Other	893				797				697				634				537					797				408
Total deposits	$	13,627			$	12,695			$	12,920			$	12,453			$	12,297				$	13,083			$	12,369
Performance Ratios
Return on average assets	2.49		%		4.49		%		2.51		%		2.27		%		2.95		%			3.15		%		2.87		%
Noninterest income to total revenue	76		%		81		%		76		%		76		%		76		%			78		%		76		%
Efficiency	80		%		70		%		80		%		81		%		75		%			76		%		76		%
Other Information
Nonperforming assets (b)	$	42			$	45			$	48			$	46			$	51
Net charge-offs	$	—			$	—			$	1			$	1			$	1				$	1			$	8
Client Assets Under Administration (in billions)     (b) (c)
Discretionary client assets under management	$	163			$	162			$	158			$	148			$	159
Nondiscretionary client assets under administration	135				132				130				124				134
Total	$	298			$	294			$	288			$	272			$	293
Discretionary client assets under management
Personal	$	98			$	99			$	95			$	87			$	97
Institutional	65				63				63				61				62
Total	$	163			$	162			$	158			$	148			$	159

 

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

(b)	As of period end.

(c)	Excludes brokerage account client assets.

---

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.

---

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).

---

THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

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.