Financial Supplement

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2004

UNAUDITED

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2004

UNAUDITED


		Page
Consolidated Statement of Income		1
Consolidated Balance Sheet		2
Capital and Asset Quality Ratios		2
Results of Business Segments
Summary		3
Banking Businesses
Regional Community Banking		4
Wholesale Banking		5
PNC Advisors		6
Asset Management and Processing Businesses
BlackRock		7
PFPC		8
Details of Net Interest Income and Net Interest Margin		9
Details of Noninterest Income and Noninterest Expense		10
Consolidated Average Balance Sheet		11
Details of Loans and Loans Held for Sale		12
Allowances For Credit Losses And Unfunded Loan Commitments And Letters of Credit		13
Details of Nonperforming Assets		14-15
Glossary of Terms		16-18
Business Segment Definitions		18

The information contained in this Financial Supplement is preliminary, unaudited and based on data available at April 21, 2004. It speaks only as of the particular date or dates included in the accompanying pages. PNC does not undertake an obligation to, and disclaims any duty to, correct or update any of the information provided. The Corporation’s future financial performance is subject to risks and uncertainties as described in its SEC filings. Certain prior period amounts included in this Financial Supplement have been reclassified to conform to the current period presentation.

See the Corporation’s Current Report on Form 8-K dated April 5, 2004 regarding changes to the presentation of the results of the Corporation’s business segments as reflected in this Financial Supplement on pages 3 through 8. The segments are defined on page 18.

Average full-time equivalent employee (FTE) statistics as disclosed in this Financial Supplement by business segment reflect staff directly employed by the respective business segment and exclude corporate and shared services employees.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Statement of Income (Unaudited)


*For the three months ended - in millions, except per share data*	March 31 2004		December 31 2003			September 30 2003			June 30 2003			March 31 2003
Interest Income
Loans and fees on loans	$	481	$	461		$	477		$	495		$	507
Securities		144		140			141			155			143
Other		41		59			50			42			42

Total interest income		666		660			668			692			692

Interest Expense
Deposits		104		102			106			117			132
Borrowed funds		68		73			75			54			57

Total interest expense		172		175			181			171			189

Net interest income		494		485			487			521			503
Provision for credit losses		12		34			50			57			36

Net interest income less provision for credit losses		482		451			437			464			467

Noninterest Income
Asset management		252		229			216			209			207
Fund servicing		204		193			188			188			193
Service charges on deposits		59		62			60			60			57
Brokerage		58		51			46			46			41
Consumer services		63		63			65			64			59
Corporate services		125		123			132			114			116
Equity management gains (losses)		7					(4	)		(17	)		(4	)
Net securities gains		15		15			19			26			56
Other		128		125			103			86			70

Total noninterest income		911		861			825			776			795

Noninterest Expense
Staff		463		472			448			446			438
Net occupancy		68		65			63			64			90
Equipment		74		71			67			69			69
Marketing		20		15			16			18			15
Distributions on capital securities										14			14
Other		270		235			233			324			230

Total noninterest expense		895		858			827			935			856

Income before minority and noncontrolling interests and income taxes		498		454			435			305			406
Minority and noncontrolling interests in income of consolidated entities		7		6			2			13			11
Income taxes		163		146			152			108			133

Income before cumulative effect of accounting change		328		302			281			184			262
Cumulative effect of accounting change (less applicable income tax benefit of $14)				(28	)

Net income	$	328	$	274		$	281		$	184		$	262

Earnings Per Common Share
Before cumulative effect of accounting change
Basic	$	1.16	$	1.09		$	1.01		$	.65		$	.93
Diluted	$	1.15	$	1.08		$	1.00		$	.65		$	.92
From net income
Basic	$	1.16	$	.99		$	1.01		$	.65		$	.93
Diluted	$	1.15	$	.98		$	1.00		$	.65		$	.92

Average Common Shares Outstanding
Basic		282		276			278			281			283
Diluted		284		278			280			282			284

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
Assets
Cash and due from banks	$	2,787		$	2,968		$	3,150		$	3,797		$	3,626
Federal funds sold					50						850			1,913
Resale agreements		1,979			1,826			1,836			908			1,193
Other short-term investments		1,243			720			697			646			819
Loans held for sale		1,548			1,400			1,531			1,475			1,702
Securities		16,941			15,690			14,907			16,017			14,973
Loans, net of unearned income of $980, $1,009, $1,037, $1,018 and $1,018		37,519			34,080			34,514			34,534			35,245
Allowance for credit losses		(604	)		(632	)		(648	)		(673	)		(680	)

Net loans		36,915			33,448			33,866			33,861			34,565
Goodwill		2,975			2,390			2,385			2,356			2,356
Other intangible assets		341			317			311			316			330
Purchased customer receivables		1,932			2,223			2,481
Other		7,454			7,136			7,539			7,036			7,142

Total assets	$	74,115		$	68,168		$	68,703		$	67,262		$	68,619

Liabilities
Deposits
Noninterest-bearing	$	11,879		$	11,505		$	12,118		$	13,368		$	12,460
Interest-bearing		36,246			33,736			33,405			33,326			34,621

Total deposits		48,125			45,241			45,523			46,694			47,081
Borrowed funds
Federal funds purchased		2,648			169			881			36			34
Repurchase agreements		1,279			1,081			1,048			1,015			1,082
Bank notes and senior debt		2,829			2,823			2,839			3,306			3,850
Federal Home Loan Bank borrowings		703			1,115			1,127			1,134			1,146
Subordinated debt		3,837			3,729			1,980			2,260			2,234
Mandatorily redeemable capital securities of subsidiary trusts								848
Commercial paper		1,934			2,226			2,483
Other borrowed funds		492			310			348			152			188

Total borrowed funds		13,722			11,453			11,554			7,903			8,534
Allowance for unfunded loan commitments and letters of credit		90			90			89			78			77
Accrued expenses		2,313			2,275			2,226			2,269			2,023
Other		2,217			2,002			2,193			2,435			3,020

Total liabilities		66,467			61,061			61,585			59,379			60,735

Minority and noncontrolling interests in consolidated entities		418			462			480			261			244
Mandatorily redeemable capital securities of subsidiary trusts											848			848

Shareholders’ Equity
Preferred stock
Common stock - $5 par value Authorized 800 shares, issued 353 shares		1,764			1,764			1,764			1,764			1,764
Capital surplus		1,209			1,108			1,110			1,100			1,102
Retained earnings		7,829			7,642			7,507			7,360			7,311
Deferred compensation expense		(27	)		(29	)		(24	)		(27	)		(28	)
Accumulated other comprehensive income		180			60			148			304			293
Common stock held in treasury at cost: 71, 76, 76, 73 and 71 shares		(3,725	)		(3,900	)		(3,867	)		(3,727	)		(3,650	)

Total shareholders’ equity		7,230			6,645			6,638			6,774			6,792

Total liabilities, minority and noncontrolling interests, capital securities and shareholders’ equity	$	74,115		$	68,168		$	68,703		$	67,262		$	68,619

CAPITAL RATIOS
Tier 1 Risk-based (a)		9.0	%		9.5	%		8.7	%		8.9	%		8.7	%
Total Risk-based (a)		13.0			13.8			12.0			12.3			12.3
Leverage (a)		7.7			8.2			7.6			8.1			8.0
Shareholders’ equity to total assets		9.76			9.75			9.66			10.07			9.90
Common shareholders’ equity to total assets		9.74			9.73			9.65			10.06			9.89

ASSET QUALITY RATIOS
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.59	%		.92	%		1.10	%		1.12	%		1.10	%
Nonperforming loans to total loans		.49			.78			.94			.95			.95
Allowance for credit losses to total loans		1.61			1.85			1.88			1.95			1.93
Allowance for credit losses to nonperforming loans		330			238			200			206			203
Net charge-offs to average loans (For the three months ended)		.68			.57			.73			.73			.42

(a)

Estimated for March 31, 2004.

THE PNC FINANCIAL SERVICES GROUP, INC.

Results of Business Segments - Summary (Unaudited) (a)


*Three months ended – dollars in millions*	March 31 2004		December 31 2003			September 30 2003			June 30 2003			March 31 2003
Earnings (Loss)
Banking businesses
Regional Community Banking	$	102	$	127		$	122		$	122		$	106
Wholesale Banking		122		117			97			83			94
PNC Advisors		31		20			25			24			20

Total banking businesses		255		264			244			229			220

Asset management and processing businesses
BlackRock		55		41			40			39			35
PFPC		16		18			17			16			13

Total asset management and processing businesses		71		59			57			55			48

Total business segment earnings		326		323			301			284			268
Other		2		(21	)		(20	)		(100	)		(6	)

Results before cumulative effect of accounting change		328		302			281			184			262
Cumulative effect of accounting change				(28	)

Total consolidated	$	328	$	274		$	281		$	184		$	262


	March 31 2004		December 31 2003			September 30 2003			June 30 2003			March 31 2003
Revenue (b)
Banking businesses
Regional Community Banking	$	501	$	489		$	478		$	479		$	446
Wholesale Banking		317		330			328			300			324
PNC Advisors		170		157			154			152			144

Total banking businesses		988		976			960			931			914

Asset management and processing businesses
BlackRock		182		161			150			144			143
PFPC		203		194			188			187			193

Total asset management and processing businesses		385		355			338			331			336

Total business segment revenue		1,373		1,331			1,298			1,262			1,250
Other		35		18			16			37			51

Total consolidated	$	1,408	$	1,349		$	1,314		$	1,299		$	1,301

(a)

See the Corporation’s Current Report on Form 8-K dated April 5, 2004 regarding changes to the presentation of the results of the Corporation’s business segments. PNC’s business segment information is based on management information systems, assumptions and methodologies that are under review on an ongoing basis.

(b)

Business segment revenue is presented on a taxable-equivalent basis except for BlackRock and PFPC, which are presented on a book (GAAP) basis. The interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. In order to provide accurate comparisons of yields and margins for all earning assets, the interest income earned on tax-exempt assets has been increased to make them fully equivalent to other taxable interest income investments. A reconciliation of total consolidated revenue on a book basis to total consolidated revenue on a taxable-equivalent basis is as follows (in millions):


	March 31 2004		December 31 2003		September 30 2003		June 30 2003		March 31 2003
Total consolidated revenue, book (GAAP) basis	$	1,405	$	1,346	$	1,312	$	1,297	$	1,298
Taxable-equivalent adjustment		3		3		2		2		3

Total consolidated revenue, taxable-equivalent basis	$	1,408	$	1,349	$	1,314	$	1,299	$	1,301

THE PNC FINANCIAL SERVICES GROUP, INC.

Regional Community Banking (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* *Dollars in millions*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
INCOME STATEMENT
Net interest income	$	333		$	314		$	310		$	307		$	292
Noninterest income
Service charges on deposits		57			59			58			57			54
Investment products		29			27			30			31			28
Other		82			89			80			84			72

Total noninterest income		168			175			168			172			154

Total revenue		501			489			478			479			446
Provision for credit losses		29			14			9			11			6
Noninterest expense
Staff expense		136			122			120			120			122
Net occupancy and equipment		68			60			61			61			63
Other		108			94			96			95			88

Total noninterest expense		312			276			277			276			273

Pretax earnings		160			199			192			192			167
Income taxes		58			72			70			70			61

Earnings	$	102		$	127		$	122		$	122		$	106

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	9,478		$	8,926		$	8,476		$	8,047		$	7,675
Indirect		774			510			492			468			438
Other consumer		682			474			504			516			546

Total consumer		10,934			9,910			9,472			9,031			8,659
Commercial loans		3,362			3,090			3,108			3,117			3,095
Floor plan		947			844			803			884			844
Residential mortgage		813			389			448			492			536
Other		567			137			138			141			140

Total loans		16,623			14,370			13,969			13,665			13,274
Goodwill		994			438			438			438			402
Loans held for sale		1,115			1,158			1,105			1,197			1,197
Other assets		2,060			1,312			1,370			1,300			1,348

Total assets	$	20,792		$	17,278		$	16,882		$	16,600		$	16,221

Deposits
Noninterest-bearing demand	$	6,244		$	5,799		$	5,739		$	5,471		$	5,264
Interest-bearing demand		6,920			6,601			6,397			6,136			6,112
Money market		12,356			12,140			12,307			12,407			12,361

Total transaction deposits		25,520			24,540			24,443			24,014			23,737
Savings		2,508			2,020			2,050			2,046			1,976
Certificates		8,565			8,047			8,234			8,666			9,360

Total deposits		36,593			34,607			34,727			34,726			35,073
Other liabilities		432			147			158			177			190
Capital		2,362			2,218			2,227			2,228			2,251

Total funds	$	39,387		$	36,972		$	37,112		$	37,131		$	37,514

PERFORMANCE RATIOS
Return on capital		17	%		23	%		22	%		22	%		19	%
Noninterest income to total revenue		34			36			35			36			35
Efficiency		62			56			58			58			61

OTHER INFORMATION (b)
Total nonperforming assets (c)	$	75		$	85		$	72		$	73		$	83
Net charge-offs (d)	$	32		$	12		$	10		$	11		$	11
Home equity portfolio credit statistics:
Percentage of first lien positions		50	%		51	%		50	%		46	%		43	%
Weighted average loan-to-value ratios		72	%		70	%		70	%		72	%		70	%
Weighted average FICO scores		713			713			712			712			709
Gains on sales of education loans (e)				$	8		$	4		$	7		$	1
Average FTE staff		10,379			9,589			9,643			9,559			9,461
ATMs		3,486			3,600			3,664			3,660			3,594
Branches		769			719			715			713			713
Checking relationships		1,679,000			1,611,000			1,606,000			1,575,000			1,555,000

(a)	See (a) on page 3.

(b)	Presented as of period-end, except for net charge-offs, gains on sales of education loans and average FTEs.

(c)	See (b) on page 14.

(d)	See (a) on page 13.

(e)	Included in other noninterest income above.

THE PNC FINANCIAL SERVICES GROUP, INC.

Wholesale Banking (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* *Dollars in millions except as noted*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
INCOME STATEMENT
Net interest income	$	164		$	170		$	172		$	167		$	171
Noninterest income
Net commercial mortgage banking
Net gains on loan sales		10			14			15			14			9
Servicing and other fees, net of amortization		11			9			11			9			10
Net gains on insitutional loans held for sale		28			16			23			15			15
Other		104			121			107			95			119

Total noninterest income		153			160			156			133			153

Total revenue		317			330			328			300			324
Provision for credit losses		(13	)		9			38			45			29
Noninterest expense		162			167			161			144			162

Pretax earnings		168			154			129			111			133
Noncontrolling interests in income of consolidated entities		(10	)		(8	)		(11	)		(2	)
Income taxes		56			45			43			30			39

Earnings	$	122		$	117		$	97		$	83		$	94

AVERAGE BALANCE SHEET
Loans
Corporate banking	$	7,765		$	7,848		$	8,017		$	8,262		$	8,604
Commerical real estate		1,665			1,647			1,841			1,953			2,052
Commerical - real estate related		1,588			1,350			1,431			1,438			1,397
PNC Business Credit		3,608			3,658			3,633			3,528			3,381

Total loans		14,626			14,503			14,922			15,181			15,434
Purchased customer receivables		2,106			2,384			2,496
Loans held for sale		484			549			436			628			678
Other assets		4,631			4,575			4,294			4,081			3,894

Total assets	$	21,847		$	22,011		$	22,148		$	19,890		$	20,006

Deposits	$	6,694		$	6,641		$	6,543		$	6,120		$	6,106
Commercial paper		2,111			2,386			2,502
Other liabilities		3,725			3,707			3,405			3,152			2,720
Capital		1,854			1,942			2,001			2,019			2,013

Total funds	$	14,384		$	14,676		$	14,451		$	11,291		$	10,839

PERFORMANCE RATIOS
Return on capital		26	%		24	%		19	%		16	%		19	%
Noninterest income to total revenue		48			48			48			44			47
Efficiency		51			51			49			48			50

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	83		$	80		$	79		$	75		$	75
Acquisitions/additions		7			6			5			7			5
Repayments/transfers		(4	)		(3	)		(4	)		(3	)		(4	)

End of period	$	86		$	83		$	80		$	79		$	75

OTHER INFORMATION
Consolidated revenue from treasury management	$	88		$	90		$	90		$	89		$	91
Consolidated revenue from capital markets	$	32		$	32		$	32		$	28		$	27
Total nonperforming assets (b)	$	131		$	227		$	311		$	324		$	317
Net charge-offs	$	30		$	34		$	51		$	50		$	23
Average FTE staff		2,944			2,873			2,876			2,884			2,991
Net carrying amount of commercial mortgage servicing rights (b)	$	211		$	209		$	200		$	199		$	201

(a)	See (a) on page 3.

(b)	Presented as of period-end.

THE PNC FINANCIAL SERVICES GROUP, INC.

PNC Advisors (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* *Dollars in millions except as noted*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
INCOME STATEMENT
Net interest income	$	27		$	27		$	27		$	27		$	26
Noninterest income
Investment management and trust		81			81			78			78			76
Brokerage		30			29			25			25			22
Other		32			20			24			22			20

Total noninterest income		143			130			127			125			118

Total revenue		170			157			154			152			144
Provision for credit losses		1			1			1			1
Noninterest expense		120			124			114			113			113

Pretax earnings		49			32			39			38			31
Income taxes		18			12			14			14			11

Earnings	$	31		$	20		$	25		$	24		$	20

AVERAGE BALANCE SHEET
Loans
Consumer	$	1,386		$	1,371		$	1,331		$	1,284		$	1,280
Residential mortgage		154			173			216			263			327
Commercial		415			415			463			435			439
Other		292			291			287			286			284

Total loans		2,247			2,250			2,297			2,268			2,330
Other assets		413			411			434			429			437

Total assets	$	2,660		$	2,661		$	2,731		$	2,697		$	2,767

Deposits	$	2,189		$	2,175		$	2,181		$	2,098		$	2,108
Other liabilities		268			262			260			253			261
Capital		325			305			308			314			326

Total funds	$	2,782		$	2,742		$	2,749		$	2,665		$	2,695

PERFORMANCE RATIOS
Return on capital		39	%		26	%		32	%		31	%		25	%
Noninterest income to total revenue		84			83			82			82			82
Efficiency		71			79			74			74			78

ASSETS UNDER ADMINISTRATION (in billions) (b) (c) (d)
Assets under management
Personal	$	39		$	44		$	42		$	42		$	40
Institutional		9			9			9			9			9

Total	$	48		$	53		$	51		$	51		$	49

Asset Type
Equity	$	28		$	31		$	28		$	28		$	25
Fixed income		14			16			16			16			16
Liquidity/other		6			6			7			7			8

Total	$	48		$	53		$	51		$	51		$	49

Nondiscretionary assets under administration
Personal	$	29		$	22		$	23		$	20		$	20
Institutional		65			65			63			65			61

Total	$	94		$	87		$	86		$	85		$	81

Asset Type
Equity	$	33		$	30		$	30		$	29		$	27
Fixed income		34			30			29			29			28
Liquidity/other		27			27			27			27			26

Total	$	94		$	87		$	86		$	85		$	81

OTHER INFORMATION (c)
Total nonperforming assets	$	11		$	11		$	11		$	5		$	5
Brokerage assets administered (in billions)	$	24		$	23		$	22		$	21		$	20
Full service brokerage offices		76			76			77			77			80
Financial consultants		444			445			458			475			491
Margin loans	$	270		$	256		$	257		$	253		$	247
Average FTE staff		2,804			2,810			2,906			2,945			3,012

(a)	See (a) on page 3.

(b)	Excludes brokerage assets administered.

(c)	Presented as of period-end, except for average FTEs.

(d)	Balance at March 31, 2004 reflects the first quarter 2004 sale of certain activities of the investment consulting business of Hawthorn and the expected resulting movement of accounts from assets under management to nondiscretionary assets under administration.

THE PNC FINANCIAL SERVICES GROUP, INC.

BlackRock (Unaudited) (a)


*Three months ended* *Dollars in millions except as noted*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
INCOME STATEMENT
Investment advisory and administration fees	$	160		$	141		$	133		$	128		$	127
Other income		22			20			17			16			16

Total revenue		182			161			150			144			143
Operating expense		104			90			84			81			81
Fund administration and servicing costs		8			9			8			8			8

Total expense		112			99			92			89			89

Operating income		70			62			58			55			54
Nonoperating income		5			5			6			8			3

Pretax earnings		75			67			64			63			57
Income taxes		20			26			24			24			22

Earnings	$	55		$	41		$	40		$	39		$	35

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	186		$	192		$	192		$	192		$	183
Other assets		723			775			728			709			653

Total assets	$	909		$	967		$	920		$	901		$	836

Liabilities	$	186		$	254		$	223		$	192		$	168
Stockholders’ equity		723			713			697			709			668

Total liabilities and stockholders’ equity	$	909		$	967		$	920		$	901		$	836

PERFORMANCE DATA
Return on equity		31	%		23	%		23	%		23	%		22	%
Operating margin (b)		40			41			41			40			40
Diluted earnings per share	$	.84		$	.63		$	.61		$	.58		$	.54

ASSETS UNDER MANAGEMENT (in billions)
Separate accounts
Fixed income	$	202		$	190		$	178		$	175		$	168
Liquidity		6			6			6			5			6
Liquidity - securities lending		9			10			10			8			6
Equity		9			9			9			9			9
Alternative investment products		6			7			7			6			6

Total separate accounts		232			222			210			203			195
Mutual funds (c)
Fixed income		25			24			23			22			20
Liquidity		59			59			58			58			56
Equity		5			4			3			3			3

Total mutual funds		89			87			84			83			79

Total assets under management	$	321		$	309		$	294		$	286		$	274

OTHER INFORMATION
Average FTE staff		947			991			976			943			944

(a)

See (a) on page 3.

(b)

Calculated as operating income divided by total revenue less fund administration and servicing costs. A reconciliation of this presentation to operating margin calculated on a GAAP basis (operating income divided by total revenue) follows in millions:


Operating income	$	70		$	62		$	58		$	55		$	54

Total revenue	$	182		$	161		$	150		$	144		$	143
Less fund administration and servicing costs		8			9			8			8			8

Revenue used for operating margin calculation, as reported	$	174		$	152		$	142		$	136		$	135

Operating margin, as reported		40	%		41	%		41	%		40	%		40	%
Operating margin, GAAP basis		38	%		38	%		38	%		38	%		38	%

PNC believes that operating margin, as reported, is an effective indicator of management’s ability to effectively employ BlackRock’s resources.

Fund administration and servicing costs have been excluded from the operating margin calculation because these costs are a fixed, asset-based expense which can fluctuate based on the discretion of a third party.

(c)

Includes BlackRock Funds, BlackRock Liquidity Funds, BlackRock Closed End Funds, Short Term Investment Fund and BlackRock Global Series Funds.

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* *Dollars in millions except as noted*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
INCOME STATEMENT
Fund servicing revenue	$	203		$	194		$	188		$	187		$	193
Operating expense		167			155			150			151			162
(Accretion)/amortization of other intangibles, net		(3	)		(4	)		(6	)		(4	)		(4	)

Operating income		39			43			44			40			35
Nonoperating income (b)		2			3			3			4			4
Debt financing		14			16			18			18			17

Pretax earnings		27			30			29			26			22
Income taxes		11			12			12			10			9

Earnings	$	16		$	18		$	17		$	16		$	13

AVERAGE BALANCE SHEET
Goodwill and other intangible assets	$	1,027		$	1,034		$	1,034		$	1,055		$	1,025
Other assets		952			949			862			836			840

Total assets	$	1,979		$	1,983		$	1,896		$	1,891		$	1,865

Debt financing	$	1,163		$	1,248		$	1,290		$	1,290		$	1,290
Assigned funds and other liabilities		550			467			306			298			269
Capital		266			268			300			303			306

Total funds	$	1,979		$	1,983		$	1,896		$	1,891		$	1,865

PERFORMANCE RATIOS
Return on capital		23	%		27	%		22	%		21	%		17	%
Operating margin (c)		19			22			23			21			18

SERVICING STATISTICS (d)
Accounting/administration net assets (in billions)
Domestic	$	634		$	622		$	593		$	583		$	542
Foreign (e)		49			45			41			35			31

Total	$	683		$	667		$	634		$	618		$	573

Asset type
Money market	$	337		$	341		$	343		$	349		$	345
Equity		206			193			166			148			121
Fixed income		96			92			89			88			79
Other		44			41			36			33			28

Total	$	683		$	667		$	634		$	618		$	573

Custody assets (in billions)	$	411		$	401		$	384		$	371		$	347

Shareholder accounts (in millions)
Transfer agency		22			21			21			20			21
Subaccounting		33			32			29			28			27

Total		55			53			50			48			48

OTHER INFORMATION
Average FTE staff		4,910			4,801			4,760			5,328			5,437

(a)	See (a) on page 3.

(b)	Net of nonoperating expense.

(c)	Operating income divided by total fund servicing revenue.

(d)	Period end.

(e)	Represents net assets serviced offshore.

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Income and Net Interest Margin (Unaudited)


	For the quarter ended
Taxable-equivalent basis In millions	March 31 2004		December 31 2003		September 30 2003		June 30 2003		March 31 2003
Net Interest income
Interest Income
Loans and fees on loans	$	483	$	463	$	479	$	497	$	509
Securities		145		141		141		155		144
Other		41		59		50		42		42

Total interest income		669		663		670		694		695

Interest expense
Deposits		104		102		106		117		132
Borrowed funds		68		73		75		54		57

Total interest expense		172		175		181		171		189

Net interest income (a)	$	497	$	488	$	489	$	523	$	506


	For the quarter ended
	March 31 2004		December 31 2003		September 30 2003		June 30 2003		March 31 2003
Net Interest Margin
Average yields/rates
Yield on earning assets
Loans and fees on loans	5.24	%	5.31	%	5.50	%	5.67	%	5.82	%
Securities	3.56		3.63		3.69		4.21		4.41
Other	2.35		3.25		2.93		4.57		2.94
Total yield on earning assets	4.44		4.60		4.71		5.19		5.17
Rate on interest-bearing liabilities
Deposits	1.16		1.20		1.25		1.40		1.56
Borrowed funds	2.07		2.31		2.45		2.46		2.63
Total rate on interest-bearing liabilities	1.40		1.50		1.57		1.61		1.77

Interest rate spread	3.04		3.10		3.14		3.58		3.40
Impact of noninterest-bearing sources	.26		.28		.30		.33		.36

Net interest margin	3.30	%	3.38	%	3.44	%	3.91	%	3.76	%

(a)

A reconciliation of net interest income as reported in the Consolidated Statement of Income to net interest income on a taxable-equivalent basis follows:


	For the quarter ended
*In millions*	March 31 2004		December 31 2003		September 30 2003		June 30 2003		March 31 2003
Net interest income, GAAP basis	$	494	$	485	$	487	$	521	$	503
Taxable-equivalent adjustment		3		3		2		2		3

Net interest income, taxable-equivalent basis	$	497	$	488	$	489	$	523	$	506

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Noninterest Income and Noninterest Expense (Unaudited)


	For the quarter ended
*In millions*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
Noninterest Income
Asset management	$	252		$	229		$	216		$	209		$	207
Fund servicing		204			193			188			188			193
Service charges on deposits		59			62			60			60			57
Brokerage		58			51			46			46			41
Consumer services		63			63			65			64			59
Corporate services		125			123			132			114			116
Equity management gains (losses)		7						(4	)		(17	)		(4	)
Net securities gains		15			15			19			26			56
Other		128			125			103			86			70

Total noninterest income	$	911		$	861		$	825		$	776		$	795

Net gains on institutional loans held for sale (included in “Corporate services” above)	$	28		$	16		$	23		$	15		$	15

Noninterest income to total revenue (a)		65	%		64	%		63	%		60	%		61	%


	For the quarter ended
	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
Noninterest Expense
Staff	$	463		$	472		$	448		$	446		$	438
Net occupancy		68			65			63			64			90
Equipment		74			71			67			69			69
Marketing		20			15			16			18			15
Distributions on capital securities (b)											14			14
Other		270			235			233			324			230

Total noninterest expense	$	895		$	858		$	827		$	935		$	856


Costs incurred, including legal fees, under DOJ agreement (included in “Other” above) (c)										$	120

Efficiency (d)		64	%		64	%		63	%		72	%		66	%

Bank efficiency (e)		60	%		61	%		60	%		72	%		62	%

(a)

Calculated as total noninterest income divided by the sum of net interest income and noninterest income. The ratio presented for the quarter ended December 31, 2003 excludes the impact of revenue included in the cumulative effect of an accounting adjustment recorded in that quarter, as management considers this to be a more meaningful comparison with the other periods presented. If the additional revenue included in the cumulative effect of an accounting adjustment had been included in the computation, the ratio would have been 62% for the quarter ended December 31, 2003.

(b)

The Corporation adopted Statement of Financial Accounting Standards No. 150, “Accounting for Certain Financial Instruments with Characteristics of both Liabilities and Equity,” (SFAS 150) effective July 1, 2003. As required by SFAS 150, the Corporation’s mandatorily redeemable capital securities of subsidiary trusts totaling $848 million were reclassified in the third quarter of 2003 from between the liabilities and shareholders’ equity sections of the Consolidated Balance Sheet to borrowed funds. From July 1, 2003 through December 31, 2003, the dividends paid on these financial instruments, previously classified as noninterest expense, were recharacterized as interest expense. Reclassification of prior period amounts was not permitted under SFAS 150. Effective December 31, 2003, the Corporation deconsolidated the assets and liabilities of the Trusts based upon guidance included in FIN 46R. The deconsolidation of the trusts removed $1.148 billion of Capital Securities issued by these Trusts while adding $1.184 billion of junior subordinated debentures and $36 million of other assets to the Consolidated Balance Sheet at December 31, 2003.

(c)	See “Agreement with Department of Justice” in the Corporation’s July 21, 2003 second quarter 2003 earnings press release included as Exhibit 99.1 to the Corporation’s Current Report on Form 8-K on that date for further information.

(d)

Calculated as noninterest expense divided by the sum of net interest income and noninterest income. The ratio presented for the quarter ended December 31, 2003 excludes the impact of revenue and expense included in the cumulative effect of an accounting adjustment recorded in that quarter, as management considers this to be a more meaningful comparison with the other periods presented. If the additional revenue and expense included in the cumulative effect of an accounting adjustment had been included in this computation, the ratio would have been 66% for the quarter ended December 31, 2003.

(e)	The bank efficiency ratio represents the consolidated efficiency ratio excluding the effect of BlackRock and PFPC.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Average Balance Sheet (Unaudited)


*Three months ended - in millions*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
Assets
Interest-earning assets
Loans held for sale	$	1,560		$	1,645		$	1,480		$	1,754		$	1,782
Securities		16,273			15,617			15,295			14,672			13,078
Loans, net of unearned income
Commercial		14,921			14,465			14,712			14,965			15,050
Commercial real estate		2,249			1,825			2,034			2,169			2,265
Consumer		12,340			11,300			10,832			10,346			9,974
Residential mortgage		3,492			2,932			2,807			3,244			3,619
Lease financing		3,391			3,477			3,633			3,767			3,909
Other		354			353			360			360			363

Total loans, net of unearned income		36,747			34,352			34,378			34,851			35,180
Other		5,503			5,478			5,142			1,979			3,958

Total interest-earning assets		60,083			57,092			56,295			53,256			53,998
Allowance for credit losses		(653	)		(645	)		(674	)		(671	)		(682	)
Other noninterest-earning assets		13,593			12,647			12,832			12,980			12,639

Total assets	$	73,023		$	69,094		$	68,453		$	65,565		$	65,955

Liabilities, Minority and Noncontrolling Interests, Capital Securities and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Demand and money market	$	23,454		$	22,745		$	22,475		$	22,141		$	22,073
Savings		2,590			2,099			2,133			2,131			2,058
Retail certificates of deposit		8,780			8,268			8,460			8,892			9,638
Other time		343			265			264			269			265
Deposits in foreign offices		806			466			238			220			206

Total interest-bearing deposits		35,973			33,843			33,570			33,653			34,240
Borrowed funds		13,147			12,405			12,099			8,701			8,702

Total interest-bearing liabilities		49,120			46,248			45,669			42,354			42,942
Demand and other noninterest-bearing deposits		11,350			11,070			11,040			10,278			10,146
Allowance for unfunded loan commitments and letters of credit		90			88			77			77			84
Accrued expenses and other liabilities		5,020			4,688			4,827			4,980			4,928

Total liabilities		65,580			62,094			61,613			57,689			58,100
Minority and noncontrolling interests in consolidated entities		434			471			295			252			251
Mandatorily redeemable capital securities of subsidiary trusts											848			848
Shareholders’ equity		7,009			6,529			6,545			6,776			6,756

Total liabilities, minority and noncontrolling interests, capital securities and shareholders’ equity	$	73,023		$	69,094		$	68,453		$	65,565		$	65,955

Supplemental Average Balance Sheet Information
Federal funds sold	$	207		$	12		$	46		$	116		$	1,813

Interest-bearing deposits	$	35,973		$	33,843		$	33,570		$	33,653		$	34,240
Demand and other noninterest-bearing deposits		11,350			11,070			11,040			10,278			10,146

Total deposits	$	47,323		$	44,913		$	44,610		$	43,931		$	44,386

Common shareholders’ equity	$	7,000		$	6,520		$	6,536		$	6,767		$	6,746

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans and Loans Held for Sale (Unaudited)

Loans


*Period ended-in millions*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
Commercial
Retail/wholesale	$	4,428		$	4,197		$	4,093		$	4,109		$	4,147
Manufacturing		3,497			3,321			3,618			3,591			3,685
Service providers		1,956			1,822			1,865			1,936			1,978
Real estate related		1,432			1,303			1,454			1,479			1,441
Financial services		1,157			1,169			1,251			1,274			1,255
Communications		78			93			68			78			110
Health care		448			403			413			407			422
Other		2,020			1,855			1,861			1,919			2,035

Total commercial		15,016			14,163			14,623			14,793			15,073

Commercial real estate
Real estate projects		1,521			1,392			1,429			1,563			1,749
Mortgage		534			432			464			464			492

Total commercial real estate		2,055			1,824			1,893			2,027			2,241

Consumer
Home equity		11,160			9,790			9,486			8,876			8,435
Automobile		762			543			522			509			476
Other		1,261			1,099			1,151			1,166			1,209

Total consumer		13,183			11,432			11,159			10,551			10,120

Residential mortgage		3,537			2,886			2,894			3,114			3,627
Lease financing
Equipment		3,765			3,691			3,684			3,580			3,500
Vehicles		583			744			934			1,130			1,346

Total lease financing		4,348			4,435			4,618			4,710			4,846

Other		360			349			364			357			356
Unearned income		(980	)		(1,009	)		(1,037	)		(1,018	)		(1,018	)

Total, net of unearned income	$	37,519		$	34,080		$	34,514		$	34,534		$	35,245

Wholesale Lending Statistics (a)
Portfolio composition-total exposure
Investment grade equivalent or better		53	%		52	%		52	%		53	%		51	%
Non-investment grade-secured lending		24			25			25			24			25
Non-investment grade		23			23			23			23			24

Total		100	%		100	%		100	%		100	%		100	%

Client relationships >$50 million-total exposure	$	12,000		$	12,396		$	12,662		$	12,852		$	13,086
Client relationships >$50 million-customers		134			138			139			143			145

Consumer Loan Statistic (b)
Net charge-offs to loans		.22	%		.29	%		.24	%		.27	%		.24	%

Loans Held for Sale


*Period ended - in millions*	March 31 2004		December 31 2003		September 30 2003		June 30 2003		March 31 2003
Education loans	$	1,180	$	1,014	$	1,140	$	1,059	$	1,243
Institutional lending repositioning		61		70		98		126		181
Other		307		316		293		290		278

Total	$	1,548	$	1,400	$	1,531	$	1,475	$	1,702

(a)

Includes amounts for customers of Market Street Funding Corporation.

(b)

Includes consumer, residential mortgage and vehicle leasing.

THE PNC FINANCIAL SERVICES GROUP, INC.

Allowances For Credit Losses And Unfunded Loan Commitments And Letters Of Credit (Unaudited)

Change in Allowance For Credit Losses


*Three months ended - in millions*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
Beginning balance	$	632		$	648		$	673		$	680		$	673
Charge-offs
Commercial		(59	)		(53	)		(56	)		(27	)		(32	)
Commercial real estate		(2	)					(1	)		(2	)
Consumer		(11	)		(10	)		(9	)		(10	)		(10	)
Residential mortgage		(1	)		(2	)		(1	)		(1	)
Lease financing		(2	)		(4	)		(5	)		(29	)		(8	)

Total charge-offs (a)		(75	)		(69	)		(72	)		(69	)		(50	)
Recoveries
Commercial		8			15			5			2			10
Commercial real estate					1
Consumer		3			3			3			3			3
Residential mortgage		1						1
Lease financing		1			1						1			1

Total recoveries		13			20			9			6			14
Net charge-offs
Commercial		(51	)		(38	)		(51	)		(25	)		(22	)
Commercial real estate		(2	)		1			(1	)		(2	)
Consumer		(8	)		(7	)		(6	)		(7	)		(7	)
Residential mortgage					(2	)					(1	)
Lease financing		(1	)		(3	)		(5	)		(28	)		(7	)

Total net charge-offs		(62	)		(49	)		(63	)		(63	)		(36	)
Provision for credit losses		12			34			50			57			36
Acquired allowance (United National)		22
Reclassification to other assets – FIN 46R								(1	)
Net change in allowance for unfunded loan commitments and letters of credit					(1	)		(11	)		(1	)		7

Ending balance	$	604		$	632		$	648		$	673		$	680

Change In Allowance For Unfunded Loan Commitments And Letters Of Credit


*Three months ended - in millions*	March 31 2004		December 31 2003		September 30 2003		June 30 2003		March 31 2003
Beginning balance	$	90	$	89	$	78	$	77	$	84
Net change in allowance for unfunded loan commitments and letters of credit				1		11		1		(7	)

Ending balance	$	90	$	90	$	89	$	78	$	77

Net Unfunded Commitments


*In millions*	March 31 2004		December 31 2003		September 30 2003		June 30 2003		March 31 2003
Net unfunded commitments	$	27,939	$	25,183	$	24,664	$	25,514	$	25,652

(a)	During the first quarter of 2004, management changed its policy for recognizing charge-offs on smaller commercial loans. This change resulted in the recognition of an additional $24 million of gross charge-offs for the first quarter of 2004.

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	March 31 2004			December 31 2003			September 30 2003			June 30 2003			March 31 2003
Nonaccrual loans
Commercial (a)	$	132		$	213		$	286		$	296		$	252
Commercial real estate		3			6			4			6			13
Consumer		10			11			10			11			11
Residential mortgage (b)		26			24			8			7			7
Lease financing		12			11			15			6			51

Total nonaccrual loans		183			265			323			326			334
Troubled debt restructured loan					1			1			1			1

Total nonperforming loans		183			266			324			327			335
Nonperforming loans held for sale (c)		4			27			35			45			61
Foreclosed and other assets
Lease financing		17			17			18			19
Residential mortgage		13			9			9			7			6
Other		12			9			10			6			6

Total foreclosed and other assets		42			35			37			32			12

Total nonperforming assets (d)	$	229		$	328		$	396		$	404		$	408

Nonperforming loans to total loans		.49	%		.78	%		.94	%		.95	%		.95	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.59			.92			1.10			1.12			1.10
Nonperforming assets to total assets		.31			.48			.58			.60			.59


(a) See Note (a) on page 13.
(b) During the fourth quarter of 2003, the Corporation accelerated the timeframe for recognizing delinquent, well-secured residential mortgage loans as nonperforming. This change resulted in the classification of an additional $15 million of residential mortgages as nonperforming assets at December 31, 2003.
(c) Includes troubled debt restructured loans held for sale	$	3		$	10		$	9		$	11		$	12
(d) Excludes equity management assets carried at estimated fair value (March 31, 2004, December 31, 2003, September 30, 2003, June 30, 2003 and March 31, 2003 amounts include troubled debt restructured assets of $11 million, $5 million, $7 million, $3 million and $3 million, respectively).	$	29		$	37		$	38		$	39		$	30

Change in Nonperforming Assets


*Three months ended March 31, 2004 - in millions*
January 1	$	328
Purchases (United National)		12
Transferred from accrual		47
Returned to performing		(1	)
Principal reductions and payoffs		(74	)
Asset sales		(42	)
Charge-offs and valuation adjustments		(41	)

March 31	$	229

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Business Segment


*Period ended - in millions*	March 31 2004		December 31 2003		September 30 2003		June 30 2003		March 31 2003
Regional Community Banking
Nonperforming loans (a)	$	64	$	74	$	62	$	64	$	74
Foreclosed and other assets		11		11		10		9		9

Total	$	75	$	85	$	72	$	73	$	83

Wholesale Banking
Nonperforming loans	$	102	$	177	$	251	$	257	$	254
Nonperforming loans held for sale		4		27		35		45		61
Foreclosed and other assets		25		23		25		22		2

Total	$	131	$	227	$	311	$	324	$	317

PNC Advisors
Nonperforming loans	$	11	$	11	$	10	$	5	$	5
Foreclosed and other assets						1

Total	$	11	$	11	$	11	$	5	$	5

Other (b)
Nonperforming loans (a)	$	6	$	4	$	1	$	1	$	2
Foreclosed and other assets		6		1		1		1		1

Total	$	12	$	5	$	2	$	2	$	3

Consolidated Totals
Nonperforming loans	$	183	$	266	$	324	$	327	$	335
Nonperforming loans held for sale		4		27		35		45		61
Foreclosed and other assets		42		35		37		32		12

Total	$	229	$	328	$	396	$	404	$	408

Largest Nonperforming Assets at March 31, 2004 - in millions (c)


				PNC
Ranking	Outstandings			Industry
1	$	17		Transportation
2		8		Metals Related
3		8		Other Media/Communication
4		7		Individuals
5		6		Miscellaneous Services
6		6		Steel
7		6		Miscellaneous Manufacturing
8		5		Paper and Forest Products
9		5		Finance Companies
10		5		Miscellaneous Manufacturing

Total	$	73

As a percent of nonperforming assets
		32.31	%

(a)	See Note (a) on page 14 of this financial supplement. The impact of this change was reflected in the amounts at March 31, 2004 and December 31, 2003.

(b)	Represents residential mortgages related to PNC’s Asset and Liability Management function.

(c)	Amounts shown are not net of related allowance for credit losses.

Glossary of Terms

Accounting/administration net assets - Net domestic and foreign fund investment assets for which PNC provides accounting and administration services. These assets are not included on PNC’s Consolidated Balance Sheet.

Adjusted average total assets - Primarily comprised of total average quarterly assets plus (less) unrealized losses (gains) on available-for-sale debt securities, less goodwill and certain other intangible assets.

Annualized - Adjusted to reflect a full year of activity.

Assets under management - Assets over which PNC has sole or shared investment authority for its customers/clients. These assets are not included on PNC’s Consolidated Balance Sheet.

Capital - Represents the amount of resources that a business segment should hold to guard against potentially large losses that could cause insolvency. It is based on a measurement of economic risk, as opposed to risk as defined by regulatory bodies or generally accepted accounting principles. The economic capital assessment process involves converting a risk distribution to the capital that is required to support the risk, commensurate with an institution’s target credit rating. As such, economic risk serves as a “common currency” of risk that allows an institution to compare disparate risks on a similar basis.

Charge-off - Process of removing a loan or portion of a loan from a bank’s balance sheet because the loan is considered uncollectible. A charge-off also is recorded when a loan is transferred to held for sale and the loan’s market value is less than its carrying amount. This difference is a charge-off.

Common shareholders’ equity to total assets - Common shareholders’ equity divided by total assets. Common shareholders’ equity equals total shareholders’ equity less preferred stock and the portion of capital surplus and retained interest related to the preferred stock.

Custody assets - All fund assets held on behalf of clients under safekeeping arrangements. Such assets are not reported on PNC’s Consolidated Balance Sheet. Assets held in custody at other institutions on behalf of PNC are included in the appropriate asset categories on the Consolidated Balance Sheet as if held physically by PNC.

Earning assets - Assets that generate income, which include: short-term investments; loans held for sale; loans, net of unearned income; securities; federal funds sold, resale agreements, purchased customer receivables and certain other assets.

Economic value of equity (“EVE”) - The present value of the expected cash flows of the Corporation’s existing assets less the present value of the expected cash flows of the Corporation’s existing liabilities, plus the present value of the net cash flows of the Corporation’s existing off-balance sheet positions.

Efficiency - Noninterest expense divided by the sum of net interest income and noninterest income.

Funds transfer pricing - A management accounting methodology designed to recognize the net interest income effects of sources and uses of funds provided by the assets and liabilities of business segments. These balances are assigned funding rates that represent the interest cost for PNC to raise/invest funds with similar maturity and repricing structures, using least-cost funding sources available.

Leverage ratio - Tier 1 risk-based capital divided by adjusted average total assets.

Net interest margin - Annualized taxable-equivalent net interest income divided by average earning assets.

Nondiscretionary assets under administration - Assets held by PNC for customers/clients in a non-discretionary, custodial capacity. These assets are not included on PNC’s Consolidated Balance Sheet.

Noninterest income to total revenue - Total noninterest income divided by total revenue. Total revenue includes total noninterest income plus net interest income.

Nonperforming assets - Nonperforming assets include nonaccrual loans, troubled debt restructured loans, nonaccrual loans held for sale, foreclosed and other assets. Interest income does not accrue on assets classified as nonperforming.

Nonperforming loans - Nonperforming loans include loans to commercial, lease financing, consumer, commercial real estate and residential mortgage customers as well as troubled debt restructured loans. Nonperforming loans do not include nonaccrual loans held for sale or foreclosed and other assets. Interest income does not accrue on loans classified as nonperforming.

Recovery - Cash proceeds received on a loan that had previously been charged off. The amount received is credited to the allowance for credit losses.

Return on capital - Annualized net income divided by average capital.

Return on average assets - Annualized net income divided by average assets.

Return on average equity - Annualized net income divided by average shareholders’ equity.

Risk-weighted assets - Primarily 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.

Securitization - The process by which financial assets are legally transformed into securities.

Shareholders’ equity to total assets - Period-end total shareholders’ equity divided by period-end total assets.

Taxable-equivalent interest - The interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. In order to provide accurate comparisons of yields and margins for all earning assets, the interest income earned on tax-exempt assets is increased to make them fully equivalent to other taxable interest income investments.

Tier 1 risk-based capital - Tier 1 capital equals: total shareholders’ equity, plus trust preferred capital securities, plus certain minority interests that are held by others; less goodwill and certain intangible assets, less equity investments in nonfinancial companies and less net unrealized holding losses on available-for-sale equity securities. Net unrealized holding gains on available-for-sale equity securities, net unrealized holding gains (losses) on available-for-sale debt securities and net unrealized holding gains (losses) on cash flow hedge derivatives are excluded from total shareholders’ equity for tier 1 capital purposes.

Tier 1 risk-based capital ratio - Tier 1 risk-based capital divided by period-end risk-weighted assets.

Total assets serviced - Total domestic and foreign fund investment assets for which PNC provides related processing services. These assets are not included on PNC’s Consolidated Balance Sheet.

Total deposits - The sum of total transaction deposits, savings accounts, certificates of deposit, other time deposits and deposits in foreign offices.

Total risk-based capital - Tier 1 risk-based capital plus qualifying senior and subordinated debt, other minority interest not qualified as tier 1, and the allowance for credit losses, subject to certain limitations.

Total risk-based capital ratio - Total risk-based capital divided by period-end risk-weighted assets.

Business Segment Definitions

Regional Community Banking provides deposit, lending, cash management and investment services to 1.9 million consumer and small business customers within PNC’s primary geographic footprint.

Wholesale Banking provides lending, treasury management and capital markets-related products and services to mid-sized corporations, government entities and selectively to large corporations. 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 and global trade services. Capital markets products include foreign exchange, derivatives, loan syndications and securities underwriting and distribution.

PNC Advisors provides a broad range of tailored investment, trust and banking products and services to affluent individuals and families, including services to the ultra-affluent through its Hawthorn unit, and provides full-service brokerage through J.J.B. Hilliard, W.L.Lyons, Inc. PNC Advisors also serves as investment manager and trustee for employee benefit plans and charitable and endowment assets and provides defined contribution plan services and investment options through its Vested Interest^® product. PNC Advisors provides services to individuals and corporations primarily within PNC’s primary geographic markets.

BlackRock is one of the largest publicly traded investment management firms in the United States. BlackRock manages assets on behalf of institutions and individuals worldwide through a variety of fixed income, liquidity and equity mutual funds, separate accounts and alternative investment products. Mutual funds include the flagship fund families, BlackRock Funds and BlackRock Liquidity Funds (formerly BlackRock Provident Institutional Funds). In addition, BlackRock provides risk management and investment system services to institutional investors under the BlackRock Solutions^® brand name.

PFPC is among the largest providers of mutual fund transfer agency and accounting and administration services in the United States, offering a wide range of fund processing services to the investment management industry and providing processing solutions to the international marketplace through its Ireland and Luxembourg operations.