Press Release

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2004

UNAUDITED

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD 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
Average Consolidated Balance Sheet		11-12
Details of Loans, Loans Held for Sale and Other Lending Statistics		13
Allowances For Loan and Lease Losses And Unfunded Loan Commitments And Letters of Credit		14
Details of Nonperforming Assets		15-16
Glossary of Terms		17-19
Business Segment Products and Services		20

The information contained in this Financial Supplement is preliminary, unaudited and based on data available at October 20, 2004. 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 SEC filings. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. See our Current Report on Form 8-K dated April 5, 2004 regarding changes to the presentation of the results of our business segments as reflected in this Financial Supplement on pages 3 through 8. Business segment products and services are described on page 19.

The average full-time equivalent employee (FTE) statistics disclosed in this Financial Supplement for each business segment reflect

reflect staff directly employed by the respective business segment and exclude corporate and shared services employees.

The PNC Financial Services Group, Inc. (“PNC”) and Riggs National Corporation (“Riggs”) have filed with the United States Securities and Exchange Commission (the “SEC”) a proxy statement/prospectus and will file other relevant documents concerning the merger of Riggs with and into PNC (the “Merger”). PNC and Riggs urge investors to read the proxy statement/prospectus and any other documents to be filed with the SEC in connection with the Merger or incorporated by reference into the proxy statement/prospectus, because they will contain important information. Investors will be able to obtain these documents free of charge at the SEC website (www.sec.gov). In addition, documents filed with the SEC by PNC will be available free of charge from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Riggs will be available free of charge from www.riggsbank.com.

The directors, executive officers, and certain other members of management of Riggs may be soliciting proxies in favor of the Merger from its shareholders. For information about these directors, executive officers, and members of management, shareholders are asked to refer to Riggs’ most recent annual meeting proxy statement, which is available at the web addresses provided in the preceding paragraph.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Statement of Income (Unaudited)


*For the three months ended - in millions, except per share data*	September 30 2004			June 30 2004		March 31 2004		December 31 2003			September 30 2003
Interest Income
Loans and fees on loans	$	516		$	490	$	490	$	472		$	488
Securities		139			130		145		141			142
Other		30			38		31		47			38

Total interest income		685			658		666		660			668

Interest Expense
Deposits		121			107		104		102			106
Borrowed funds		73			70		68		73			75

Total interest expense		194			177		172		175			181

Net interest income		491			481		494		485			487
Provision for credit losses		13			8		12		34			50

Net interest income less provision for credit losses		478			473		482		451			437

Noninterest Income
Asset management		238			250		252		229			216
Fund servicing		204			200		204		193			188
Service charges on deposits		65			63		59		62			60
Brokerage		52			56		58		51			46
Consumer services		66			67		63		63			65
Corporate services		100			128		125		123			132
Equity management gains (losses)		16			35		7					(4	)
Net securities gains		16			14		15		15			19
Other		81			97		128		125			103

Total noninterest income		838			910		911		861			825

Noninterest Expense
Staff		576			491		463		472			448
Net occupancy		68			67		68		65			63
Equipment		72			70		74		71			67
Marketing		19			24		20		15			16
Other		246			258		270		235			233

Total noninterest expense		981			910		895		858			827

Income before minority and noncontrolling interests and income taxes		335			473		498		454			435
Minority and noncontrolling interests in (loss) income of consolidated entities		(13	)		11		7		6			2
Income taxes		90			158		163		146			152

Income before cumulative effect of accounting change		258			304		328		302			281
Cumulative effect of accounting change (less applicable income tax benefit of $14)									(28	)

Net income	$	258		$	304	$	328	$	274		$	281

Earnings Per Common Share
Before cumulative effect of accounting change
Basic	$	.92		$	1.08	$	1.16	$	1.09		$	1.01
Diluted	$	.91		$	1.07	$	1.15	$	1.08		$	1.00
From net income
Basic	$	.92		$	1.08	$	1.16	$	.99		$	1.01
Diluted	$	.91		$	1.07	$	1.15	$	.98		$	1.00

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

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Assets
Cash and due from banks	$	3,005		$	3,065		$	2,787		$	2,968		$	3,150
Federal funds sold											50
Resale agreements		1,154			1,096			1,979			1,826			1,836
Other short-term investments		1,801			1,335			1,243			720			697
Loans held for sale		1,582			1,457			1,548			1,400			1,531
Securities		16,824			14,954			16,941			15,690			14,907
Loans, net of unearned income of $931, $923, $980, $1,009 and $1,037		42,480			40,835			39,451			36,303			36,995
Allowance for loan and lease losses		(581	)		(593	)		(604	)		(632	)		(648	)

Net loans		41,899			40,242			38,847			35,671			36,347
Goodwill		3,007			2,978			2,975			2,390			2,385
Other intangible assets		348			351			341			317			311
Other		7,677			7,640			7,454			7,136			7,539

Total assets	$	77,297		$	73,118		$	74,115		$	68,168		$	68,703

Liabilities
Deposits
Noninterest-bearing	$	12,461		$	12,246		$	11,879		$	11,505		$	12,118
Interest-bearing		38,701			37,748			36,246			33,736			33,405

Total deposits		51,162			49,994			48,125			45,241			45,523
Borrowed funds
Federal funds purchased		2,008			1,069			2,648			169			881
Repurchase agreements		1,595			1,163			1,279			1,081			1,048
Bank notes and senior debt		2,997			2,796			2,829			2,823			2,839
Federal Home Loan Bank borrowings		96			101			703			1,115			1,127
Subordinated debt		3,569			3,510			3,837			3,729			1,980
Mandatorily redeemable capital securities of subsidiary trusts														848
Commercial paper		1,805			1,743			1,934			2,226			2,483
Other borrowed funds		849			555			492			310			348

Total borrowed funds		12,919			10,937			13,722			11,453			11,554
Allowance for unfunded loan commitments and letters of credit		96			84			91			91			90
Accrued expenses		2,402			2,221			2,313			2,275			2,226
Other		2,907			2,399			2,216			2,001			2,192

Total liabilities		69,486			65,635			66,467			61,061			61,585

Minority and noncontrolling interests in consolidated entities		499			419			418			462			480

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		1,246			1,235			1,209			1,108			1,110
Retained earnings		8,107			7,991			7,829			7,642			7,507
Deferred compensation expense		(52	)		(54	)		(27	)		(29	)		(24	)
Accumulated other comprehensive (loss) income		(25	)		(139	)		180			60			148
Common stock held in treasury at cost: 70, 71, 71, 76 and 76 shares		(3,728	)		(3,733	)		(3,725	)		(3,900	)		(3,867	)

Total shareholders’ equity		7,312			7,064			7,230			6,645			6,638

Total liabilities, minority and noncontrolling interests and shareholders’ equity	$	77,297		$	73,118		$	74,115		$	68,168		$	68,703

CAPITAL RATIOS
Tier 1 Risk-based (a)		9.0	%		9.1	%		9.1	%		9.5	%		8.7	%
Total Risk-based (a)		12.5			12.9			13.1			13.8			12.0
Leverage (a)		7.7			7.7			7.7			8.2			7.6
Tangible common		5.6			5.6			5.8			6.3			6.2
Shareholders’ equity to total assets		9.46			9.66			9.76			9.75			9.66
Common shareholders’ equity to total assets		9.45			9.65			9.74			9.73			9.65

ASSET QUALITY RATIOS
Nonperforming assets to loans, loans held for sale and foreclosed assets		.42	%		.49	%		.56	%		.87	%		1.03	%
Nonperforming loans to loans		.35			.41			.46			.73			.88
Net charge-offs to average loans (For the three months ended)		.12			.26			.64			.53			.68
Allowance for loan and lease losses to loans		1.37			1.45			1.53			1.74			1.75
Allowance for loan and lease losses to nonperforming loans		393			351			330			238			200

(a)	Estimated for September 30, 2004.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

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


Three months ended – dollars in millions
Earnings	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Banking businesses
Regional Community Banking	$	134		$	125		$	102		$	127		$	122
Wholesale Banking		100			113			122			117			97
PNC Advisors		24			27			31			20			25

Total banking businesses		258			265			255			264			244

Asset management and processing businesses
BlackRock (b)		(10	)		48			55			41			40
PFPC		17			17			16			18			17

Total asset management and processing businesses		7			65			71			59			57

Total business segment earnings		265			330			326			323			301
Minority interest in loss (income) of BlackRock		3			(14	)		(16	)		(12	)		(12	)
Other		(10	)		(12	)		18			(9	)		(8	)

Results before cumulative effect of accounting change		258			304			328			302			281
Cumulative effect of accounting change											(28	)

Total consolidated	$	258		$	304		$	328		$	274		$	281


Revenue (c)	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Banking businesses
Regional Community Banking	$	525		$	511		$	501		$	489		$	478
Wholesale Banking		299			322			317			330			328
PNC Advisors		151			154			170			159			156

Total banking businesses		975			987			988			978			962

Asset management and processing businesses
BlackRock		171			184			182			161			150
PFPC		203			199			203			194			188

Total asset management and processing businesses		374			383			385			355			338

Total business segment revenue		1,349			1,370			1,373			1,333			1,300
Other		(13	)		25			35			16			14

Total consolidated	$	1,336		$	1,395		$	1,408		$	1,349		$	1,314

(a)

See our Current Report on Form 8-K dated April 5, 2004 regarding changes to the presentation of the results of our business segments. Our business segment information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses change.

(b)	BlackRock results for the third quarter of 2004 reflect a $57 million after-tax impact for the BlackRock LTIP charge.

(c)

Business segment revenue is presented on a taxable-equivalent basis except for BlackRock and PFPC. BlackRock began reporting revenue on a taxable-equivalent basis in the third quarter of 2004. BlackRock for all other periods and PFPC for all periods is presented on a book (GAAP) basis. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than a taxable investment. To provide accurate comparisons of yields and margins for all earning assets, we have increased the interest income earned on tax-exempt assets to make them fully equivalent to other taxable interest income investments. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):


	September 30 2004		June 30 2004		March 31 2004		December 31 2003		September 30 2003
Total consolidated revenue, book (GAAP) basis	$	1,329	$	1,391	$	1,405	$	1,346	$	1,312
Taxable-equivalent adjustment		7		4		3		3		2

Total consolidated revenue, taxable-equivalent basis	$	1,336	$	1,395	$	1,408	$	1,349	$	1,314

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Regional Community Banking (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* (a) *Dollars in millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
INCOME STATEMENT
Net interest income	$	342		$	340		$	333		$	314		$	310
Noninterest income
Service charges on deposits		63			60			57			59			58
Investment products		27			29			29			27			30
Other		93			82			82			89			80

Total noninterest income		183			171			168			175			168

Total revenue		525			511			501			489			478
Provision for credit losses		13			6			29			14			9
Noninterest expense
Staff expense		132			130			136			122			120
Net occupancy and equipment		66			66			68			60			61
Other		102			111			108			94			96

Total noninterest expense		300			307			312			276			277

Pretax earnings		212			198			160			199			192
Income taxes		78			73			58			72			70

Earnings	$	134		$	125		$	102		$	127		$	122

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	11,283		$	10,734		$	9,478		$	8,926		$	8,476
Indirect		879			836			774			510			492
Other consumer		514			533			682			474			504

Total consumer		12,676			12,103			10,934			9,910			9,472
Commercial		4,113			3,943			3,901			3,205			3,223
Floor plan		929			1,037			947			844			803
Residential mortgage		737			776			813			389			448
Other		25			24			28			22			23

Total loans		18,480			17,883			16,623			14,370			13,969
Goodwill		1,005			1,005			994			438			438
Loans held for sale		1,238			1,156			1,115			1,158			1,105
Other assets		1,447			1,587			2,060			1,312			1,370

Total assets	$	22,170		$	21,631		$	20,792		$	17,278		$	16,882

Deposits
Noninterest-bearing demand	$	6,712		$	6,464		$	6,248		$	5,804		$	5,744
Interest-bearing demand		6,937			6,916			6,916			6,596			6,392
Money market		12,112			12,465			12,356			12,140			12,307

Total transaction deposits		25,761			25,845			25,520			24,540			24,443
Savings		2,659			2,548			2,508			2,020			2,050
Certificates of deposit		8,775			8,421			8,565			8,047			8,234

Total deposits		37,195			36,814			36,593			34,607			34,727
Other liabilities		185			223			432			147			158
Capital		2,375			2,364			2,362			2,218			2,227

Total funds	$	39,755		$	39,401		$	39,387		$	36,972		$	37,112

PERFORMANCE RATIOS
Return on capital		22	%		21	%		17	%		23	%		22	%
Noninterest income to total revenue		35			33			34			36			35
Efficiency		57			60			62			56			58

OTHER INFORMATION (b)
Total nonperforming assets (c)	$	85		$	81		$	75		$	85		$	72
Net charge-offs (d)	$	10		$	10		$	32		$	12		$	10
Annualized net charge-off ratio (d)		.22	%		.22	%		.77	%		.33	%		.28	%
Home equity portfolio credit statistics:
Percentage of first lien positions		51	%		51	%		50	%		51	%		50	%
Weighted average loan-to-value ratios		71	%		71	%		72	%		70	%		70	%
Weighted average FICO scores		717			717			713			713			712
Loans 90 days past due		.22	%		.20	%		.23	%		.25	%		.23	%
Gains on sales of education loans (e)	$	15		$	2					$	8		$	4
Average FTE staff		10,251			10,254			10,379			9,589			9,643
ATMs		3,555			3,528			3,486			3,600			3,664
Branches		774			775			769			719			715
Checking relationships		1,732,000			1,700,000			1,679,000			1,611,000			1,606,000
Consumer DDA households using online banking		690,000			663,000			637,000			593,000			570,000
% of consumer DDA households using online banking		44	%		43	%		42	%		41	%		39	%
Consumer DDA households using online bill payment		108,000			112,000			102,000			63,000			58,000
% of consumer DDA households using online bill payment		7	%		7	%		7	%		4	%		4	%
Small business deposits
Demand	$	5,461		$	5,423		$	5,407		$	5,303		$	5,109
Money market		2,788			2,707			2,510			2,283			2,180
Certificates of deposit		304			300			324			300			309

(a)	See (a) and (c) on page 3.

(b)	Presented as of period-end, except for net charge-offs, annualized net charge-off ratio, home equity portfolio weighted average statistics, gains on sales of education loans, average FTEs and small business deposits.

(c)	See (a) and (b) on page 15.

(d)	See (a) on page 14.

(e)	Included in “Other noninterest income” above.

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Wholesale Banking (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* (a) *Dollars in millions except as noted*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
INCOME STATEMENT
Net interest income	$	179		$	170		$	163		$	169		$	170
Net interest income - FIN 46		1			1			1			1			2

Total net interest income		180			171			164			170			172
Noninterest income
Net commercial mortgage banking
Net gains on loan sales		6			14			10			14			15
Servicing and other fees, net of amortization		12			12			11			9			11
Net gains on institutional loans held for sale		5			17			28			16			23
Other - FIN 46		4			4			4			8			6
Other		92			104			100			113			101

Noninterest income		119			151			153			160			156

Total revenue		299			322			317			330			328
Provision for credit losses		1			8			(13	)		9			38
Noninterest expense - FIN 46		15			15			15			17			19
Noninterest expense		151			147			147			150			142

Pretax earnings		132			152			168			154			129
Noncontrolling interests in income of consolidated entities		(12	)		(10	)		(10	)		(8	)		(11	)
Income taxes		44			49			56			45			43

Earnings	$	100		$	113		$	122		$	117		$	97

AVERAGE BALANCE SHEET
Loans (b)
Corporate banking	$	9,776		$	9,669		$	9,875		$	10,233		$	10,512
Commercial real estate		1,902			1,934			1,665			1,647			1,841
Commercial - real estate related		1,704			1,465			1,585			1,350			1,431
PNC Business Credit		3,838			3,788			3,608			3,658			3,633

Total loans		17,220			16,856			16,733			16,888			17,417
Loans held for sale		349			493			484			549			436
Other assets		4,010			4,640			4,630			4,574			4,295

Total assets	$	21,579		$	21,989		$	21,847		$	22,011		$	22,148

Deposits	$	7,882		$	6,981		$	6,694		$	6,641		$	6,543
Commercial paper		1,679			1,815			2,111			2,386			2,502
Other liabilities		2,944			3,583			3,725			3,707			3,405
Capital		1,586			1,659			1,854			1,942			2,001

Total funds	$	14,091		$	14,038		$	14,384		$	14,676		$	14,451

PERFORMANCE RATIOS
Return on capital		25	%		27	%		26	%		24	%		19	%
Noninterest income to total revenue		40			47			48			48			48
Efficiency		56			50			51			51			49

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	89		$	86		$	83		$	80		$	79
Acquisitions/additions		11			11			7			6			5
Repayments/transfers		(7	)		(8	)		(4	)		(3	)		(4	)

End of period	$	93		$	89		$	86		$	83		$	80

OTHER INFORMATION
Consolidated revenue from treasury management	$	95		$	91		$	88		$	90		$	90
Consolidated revenue from capital markets	$	27		$	37		$	32		$	32		$	32
Total loans (c)	$	17,650		$	17,171		$	16,728		$	16,441		$	17,478
Total nonperforming assets (c)	$	82		$	110		$	131		$	227		$	311
Net charge-offs				$	16		$	30		$	34		$	51
Average FTE staff		3,098			3,074			3,038			2,970			2,977
Net carrying amount of commercial mortgage servicing rights (c)	$	229		$	226		$	211		$	209		$	200

(a)	See (a) and (c) on page 3.

(b)	Includes Market Street Funding Corporation. See Supplemental Average Balance Sheet Information on Page 11.

(c)	Presented as of period-end.

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

PNC Advisors (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions except as noted*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
INCOME STATEMENT
Net interest income	$	29		$	27		$	27		$	27		$	27
Noninterest income
Investment management and trust		77			79			81			81			78
Brokerage		25			28			30			29			25
Other		20			20			32			22			26

Total noninterest income		122			127			143			132			129

Total revenue		151			154			170			159			156
Provision for credit losses		1			(2	)		1			1			1
Noninterest expense		112			114			120			126			116

Pretax earnings		38			42			49			32			39
Income taxes		14			15			18			12			14

Earnings	$	24		$	27		$	31		$	20		$	25

AVERAGE BALANCE SHEET
Loans
Consumer	$	1,568		$	1,475		$	1,386		$	1,371		$	1,331
Residential mortgage		118			137			154			173			216
Commercial		412			417			415			415			463
Other		293			303			292			291			287

Total loans		2,391			2,332			2,247			2,250			2,297
Other assets		393			405			413			411			434

Total assets	$	2,784		$	2,737		$	2,660		$	2,661		$	2,731

Deposits	$	2,252		$	2,298		$	2,189		$	2,175		$	2,181
Other liabilities		276			272			268			262			260
Capital		305			301			325			305			308

Total funds	$	2,833		$	2,871		$	2,782		$	2,742		$	2,749

PERFORMANCE RATIOS
Return on capital		31	%		36	%		38	%		26	%		32	%
Noninterest income to total revenue		81			82			84			83			82
Efficiency		74			74			71			79			74

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

Total	$	48		$	49		$	48		$	53		$	51

Asset Type
Equity	$	28		$	29		$	28		$	31		$	28
Fixed income		14			14			14			16			16
Liquidity/Other		6			6			6			6			7

Total	$	48		$	49		$	48		$	53		$	51

Nondiscretionary assets under administration
Personal	$	27		$	27		$	29		$	22		$	23
Institutional		64			64			65			65			63

Total	$	91		$	91		$	94		$	87		$	86

Asset Type
Equity	$	31		$	32		$	33		$	30		$	30
Fixed income		32			33			34			30			29
Liquidity/Other		28			26			27			27			27

Total	$	91		$	91		$	94		$	87		$	86

OTHER INFORMATION (c)
Total nonperforming assets	$	10		$	10		$	11		$	11		$	11
Brokerage assets administered (in billions)	$	23		$	23		$	24		$	23		$	22
Full service brokerage offices		75			75			76			76			77
Financial consultants		435			436			444			445			458
Margin loans	$	267		$	268		$	270		$	256		$	257
Average FTE staff		2,791			2,787			2,804			2,810			2,906

(a)	See (a) and (c) on page 3.

(b)	Excludes brokerage assets administered.

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

(d)

Balances at September 30, 2004, June 30, 2004 and March 31, 2004 reflect the first quarter 2004 sale of certain activities of the investment consulting business of Hawthorn and the expected reduction of approximately $6 billion of assets under management with approximately $4.7 million moving to nondiscretionary assets under administration.

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

BlackRock (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* (a) *Dollars in millions except as noted*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
INCOME STATEMENT
Investment advisory and administration fees	$	148		$	162		$	160		$	141		$	133
Other income		23			22			22			20			17

Total revenue		171			184			182			161			150
Operating expense		94			113			104			90			84
Operating expense - LTIP charge		91
Fund administration and servicing costs		9			8			8			9			8

Total expense		194			121			112			99			92

Operating (loss) income		(23	)		63			70			62			58
Nonoperating income		7			15			6			5			6

Pretax (loss) earnings		(16	)		78			76			67			64
Minority interest					4
Income taxes		(6	)		26			21			26			24

(Loss) earnings	$	(10	)	$	48		$	55		$	41		$	40

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	184		$	186		$	186		$	192		$	192
Other assets		872			780			723			775			728

Total assets	$	1,056		$	966		$	909		$	967		$	920

Liabilities	$	321		$	211		$	186		$	254		$	223
Stockholders’ equity		735			755			723			713			697

Total liabilities and stockholders’ equity	$	1,056		$	966		$	909		$	967		$	920

PERFORMANCE DATA
Return on equity		(5	)%		26	%		31	%		23	%		23	%
Operating margin (b)		32			36			40			41			41
Diluted (loss) earnings per share	$	(.15	)	$	.73		$	.84		$	.63		$	.61

ASSETS UNDER MANAGEMENT (in billions) (period end)
Separate accounts
Fixed income	$	211		$	200		$	202		$	190		$	178
Liquidity		8			7			6			6			6
Liquidity - securities lending		9			9			9			10			10
Equity		8			9			9			9			9
Alternative investment products		7			6			6			7			7

Total separate accounts		243			231			232			222			210
Mutual funds (c)
Fixed income		24			24			25			24			23
Liquidity		51			50			59			59			58
Equity		5			5			5			4			3

Total mutual funds		80			79			89			87			84

Total assets under management	$	323		$	310		$	321		$	309		$	294

OTHER INFORMATION
Average FTE staff		1,063			984			947			991			976

(a) See (a) and (c) on page 3. (b) Calculated as operating income, adjusted for the 2002 BlackRock Long-Term Retention and Incentive Plan (LTIP) charge, divided by total revenue less fund administration and servicing costs. The following is a reconciliation of this presentation to operating margin calculated on a GAAP basis (operating income divided by total revenue) in millions:

Operating (loss) income, GAAP basis	$	(23	)	$	63		$	70		$	62		$	58
Add back: LTIP charge		91
Less: portion of LTIP to be funded by BlackRock		(17	)

Operating income, as adjusted	$	51		$	63		$	70		$	62		$	58

Total revenue, GAAP basis	$	171		$	184		$	182		$	161		$	150
Less: fund administration and servicing costs		9			8			8			9			8

Revenue used for operating margin calculation, as reported	$	162		$	176		$	174		$	152		$	142

Operating margin, as reported		32	%		36	%		40	%		41	%		41	%
Operating margin, GAAP basis		(13	)%		34	%		38	%		38	%		38	%

We believe that operating margin, as reported, is a more relevant indicator of management’s ability to effectively employ BlackRock’s resources. The portion of the LTIP charge associated with awards to be met with the contribution of shares of BlackRock stock by PNC has been excluded from operating income because, exclusive of impact related to LTIP participants’ option to put awarded shares to BlackRock, this non-cash charge will not impact BlackRock’s book value. We have excluded fund administration and servicing costs 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.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


Three months ended Dollars in millions except as noted	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
INCOME STATEMENT
Fund servicing revenue	$	203		$	199		$	203		$	194		$	188
Operating expense		158			158			167			155			150
Amortization (Accretion) of other intangibles, net		3			(1	)		(3	)		(4	)		(6	)

Operating income		42			42			39			43			44
Nonoperating income (b)		1						2			3			3
Debt financing		14			14			14			16			18

Pretax earnings		29			28			27			30			29
Income taxes		12			11			11			12			12

Earnings	$	17		$	17		$	16		$	18		$	17

AVERAGE BALANCE SHEET
Goodwill and other intangible assets	$	1,021		$	1,024		$	1,027		$	1,034		$	1,034
Other assets		1,052			1,054			952			949			862

Total assets	$	2,073		$	2,078		$	1,979		$	1,983		$	1,896

Debt financing	$	1,102		$	1,137		$	1,163		$	1,248		$	1,290
Other liabilities, net		711			681			550			467			306
Capital		260			260			266			268			300

Total funds	$	2,073		$	2,078		$	1,979		$	1,983		$	1,896

PERFORMANCE RATIOS
Return on capital		26	%		26	%		23	%		27	%		22	%
Operating margin (c)		21			21			19			22			23

SERVICING STATISTICS (d)
Accounting/administration net fund assets (in billions)
Domestic	$	609		$	612		$	621		$	609		$	581
Foreign (e)		58			53			48			45			41

Total	$	667		$	665		$	669		$	654		$	622

Asset type
Money market	$	322		$	326		$	337		$	341		$	342
Equity		203			200			198			186			159
Fixed income		97			94			95			90			88
Other		45			45			39			37			33

Total	$	667		$	665		$	669		$	654		$	622

Custody fund assets (in billions)	$	418		$	416		$	411		$	401		$	384

Shareholder accounts (in millions)
Transfer agency		21			21			22			21			21
Subaccounting		34			34			33			32			29

Total		55			55			55			53			50

OTHER INFORMATION
Average FTE staff		4,614			4,816			4,910			4,801			4,760

(a)	See (a) on page 3.

(b)	Net of nonoperating expense.

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

(d)	Presented as of period-end.

(e)	Represents net assets serviced offshore.

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

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

Taxable-equivalent basis


	For the quarter ended
Net Interest Income *In millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Interest income
Loans and fees on loans	$	518		$	491		$	492		$	474		$	490
Securities		141			131			146			142			142
Other		33			40			31			47			38

Total interest income		692			662			669			663			670

Interest expense
Deposits		121			107			104			102			106
Borrowed funds		73			70			68			73			75

Total interest expense		194			177			172			175			181

Net interest income (a)	$	498		$	485		$	497		$	488		$	489


	For the quarter ended
Net Interest Margin	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Average yields/rates
Yield on earning assets
Loans and fees on loans		4.89	%		4.89	%		5.05	%		5.08	%		5.25	%
Securities		3.67			3.33			3.57			3.65			3.71
Other		2.89			3.07			2.54			3.94			3.56
Total yield on earning assets		4.44			4.34			4.44			4.60			4.71
Rate on interest-bearing liabilities
Deposits		1.27			1.15			1.16			1.20			1.25
Borrowed funds		2.45			2.21			2.07			2.31			2.45
Total rate on interest-bearing liabilities		1.55			1.42			1.40			1.50			1.57

Interest rate spread		2.89			2.92			3.04			3.10			3.14
Impact of noninterest-bearing sources		.30			.26			.26			.28			.30

Net interest margin		3.19	%		3.18	%		3.30	%		3.38	%		3.44	%

(a) The following is a reconciliation of net interest income as reported in the Consolidated Statement of Income to net interest income on a taxable-equivalent basis:

	For the quarter ended
*In millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Net interest income, GAAP basis	$	491		$	481		$	494		$	485		$	487
Taxable-equivalent adjustment		7			4			3			3			2

Net interest income, taxable-equivalent basis	$	498		$	485		$	497		$	488		$	489

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Noninterest Income and Noninterest Expense (Unaudited)

In millions


	For the quarter ended
Noninterest Income	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Asset management	$	238		$	250		$	252		$	229		$	216
Fund servicing		204			200			204			193			188
Service charges on deposits		65			63			59			62			60
Brokerage		52			56			58			51			46
Consumer services		66			67			63			63			65
Corporate services		100			128			125			123			132
Equity management gains (losses)		16			35			7						(4	)
Net securities gains		16			14			15			15			19
Other		81			97			128			125			103

Total noninterest income	$	838		$	910		$	911		$	861		$	825

Included in “Corporate services” above
Net gains on institutional loans held for sale	$	5		$	17		$	28		$	16		$	23
Net gains on commercial mortgage-backed securities	$	6		$	14		$	10		$	14		$	15

Included in “Other” above
Gains on sales of education loans	$	15		$	2					$	8		$	4
Net trading income	$	16		$	30		$	23		$	28		$	36

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

	For the quarter ended
Noninterest Expense	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Staff	$	576		$	491		$	463		$	472		$	448
Net occupancy		68			67			68			65			63
Equipment		72			70			74			71			67
Marketing		19			24			20			15			16
Other		246			258			270			235			233

Total noninterest expense (b)	$	981		$	910		$	895		$	858		$	827

Efficiency (c)		74	%		65	%		64	%		64	%		63	%

Bank efficiency (d)		65	%		63	%		60	%		61	%		60	%

(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 we consider 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)	Quarter ended September 30, 2004 includes $96 million of charges related to the BlackRock LTIP. See the Current Reports on Form 8-K dated October 6, 2004 filed by us and BlackRock for further information. These charges include “Staff” expense of $91 million and “Other” expense of $5 million.

(c)

Calculated as noninterest expense divided by the sum of net interest income and noninterest income. The ratio for the quarter ended September 30, 2004 includes the impact of the LTIP charge. If the impact of the LTIP charge had been excluded from the computation, the ratio would have been 67% for the quarter ended September 30, 2004.

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 we consider this also 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 the computation, the ratio would have been 66% for the quarter ended December 31, 2003.

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

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


*Three months ended - in millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Assets
Interest-earning assets
Securities
Securities available for sale
U.S. Treasury and government agencies/corporations	$	6,288		$	6,654		$	6,432		$	5,929		$	4,562
Other debt		8,667			8,624			9,293			9,154			10,187
State and municipal		216			225			264			149			144
Corporate stocks and other		201			259			282			383			397

Total securities available for sale		15,372			15,762			16,271			15,615			15,290
Securities held to maturity		2			2			2			2			5

Total securities		15,374			15,764			16,273			15,617			15,295
Loans, net of unearned income
Commercial		16,915			16,445			15,827			15,514			15,805
Commercial real estate		2,120			2,100			2,249			1,825			2,034
Consumer		14,673			13,968			12,719			11,692			11,195
Residential mortgage		4,354			3,622			3,492			2,932			2,807
Lease financing		3,182			3,437			4,050			4,252			4,503
Other		507			497			517			522			529

Total loans, net of unearned income		41,751			40,069			38,854			36,737			36,873
Loans held for sale		1,578			1,636			1,560			1,645			1,480
Federal funds sold		4						207			12			46
Resale agreements		1,279			1,896			2,028			1,997			1,690
Other		1,745			1,550			1,161			1,084			911

Total interest-earning assets		61,731			60,915			60,083			57,092			56,295
Noninterest-earning assets
Allowance for loan and lease losses		(593	)		(603	)		(653	)		(645	)		(674	)
Cash and due from banks		2,851			2,793			2,896			2,774			2,788
Other assets		11,372			10,762			10,697			9,873			10,044

Total assets	$	75,361		$	73,867		$	73,023		$	69,094		$	68,453

Supplemental Average Balance Sheet Information
Loans excluding conduit	$	40,074		$	38,257		$	36,747		$	34,352		$	34,378
Market Street Funding Corporation conduit		1,677			1,812			2,107			2,385			2,495

Total loans	$	41,751		$	40,069		$	38,854		$	36,737		$	36,873

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


*Three months ended - in millions*	September 30 2004		June 30 2004		March 31 2004		December 31 2003		September 30 2003
Liabilities, Minority and Noncontrolling Interests and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	15,916	$	16,027	$	15,581	$	15,249	$	15,198
Demand		7,857		7,878		7,873		7,496		7,277
Savings		2,730		2,595		2,590		2,099		2,133
Retail certificates of deposit		9,100		8,650		8,780		8,268		8,460
Other time		825		680		343		265		264
Time deposits in foreign offices		1,561		1,485		806		466		238

Total interest-bearing deposits		37,989		37,315		35,973		33,843		33,570
Borrowed funds
Federal funds purchased		1,940		2,303		1,912		1,558		1,306
Repurchase agreements		1,158		1,508		1,157		1,226		1,204
Bank notes and senior debt		2,709		2,752		2,752		2,752		2,904
Federal Home Loan Bank borrowings		98		184		1,180		1,119		1,129
Subordinated debt		3,411		3,545		3,593		2,175		1,949
Mandatorily redeemable capital securities of subsidiary trusts								881		848
Commercial paper		1,679		1,815		2,111		2,388		2,501
Other borrowed funds		760		449		442		306		258

Total borrowed funds		11,755		12,556		13,147		12,405		12,099

Total interest-bearing liabilities		49,744		49,871		49,120		46,248		45,669
Noninterest-bearing liabilities, minority and noncontrolling interests and shareholders’ equity
Demand and other noninterest-bearing deposits		12,477		11,681		11,350		11,070		11,040
Allowance for unfunded loan commitments and letters of credit		84		90		90		88		77
Accrued expenses and other liabilities		5,469		4,772		5,020		4,688		4,827
Minority and noncontrolling interests in consolidated entities		466		419		434		471		295
Shareholders’ equity		7,121		7,034		7,009		6,529		6,545

Total liabilities, minority and noncontrolling interests and shareholders’ equity	$	75,361	$	73,867	$	73,023	$	69,094	$	68,453

Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	37,989	$	37,315	$	35,973	$	33,843	$	33,570
Demand and other noninterest-bearing deposits		12,477		11,681		11,350		11,070		11,040

Total deposits	$	50,466	$	48,996	$	47,323	$	44,913	$	44,610

Transaction deposits	$	36,250	$	35,586	$	34,804	$	33,815	$	33,515

Common shareholders’ equity	$	7,113	$	7,026	$	7,000	$	6,520	$	6,536

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans and Loans Held for Sale (Unaudited)


Loans
*Period ended - in millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Commercial
Retail/wholesale	$	4,855		$	4,734		$	4,528		$	4,327		$	4,282
Manufacturing		4,033			4,050			3,835			3,786			4,114
Service providers		2,047			1,982			2,044			1,867			1,950
Real estate related		1,706			1,616			1,432			1,303			1,454
Financial services		1,214			1,268			1,157			1,169			1,251
Health care		473			470			448			403			413
Communications		98			105			78			93			68
Other		2,821			2,620			2,529			2,303			2,339

Total commercial		17,247			16,845			16,051			15,251			15,871

Commercial real estate
Real estate projects		1,513			1,530			1,521			1,392			1,429
Mortgage		527			575			534			432			464

Total commercial real estate		2,040			2,105			2,055			1,824			1,893

Consumer
Home equity		12,377			11,946			11,160			9,790			9,486
Automobile		842			825			762			585			545
Other		1,684			1,676			1,678			1,480			1,530

Total consumer		14,903			14,447			13,600			11,855			11,561

Residential mortgage		4,672			3,906			3,537			2,886			2,894
Lease financing
Equipment		3,949			3,818			3,859			3,935			3,934
Vehicles		228			285			969			1,212			1,515

Total lease financing		4,177			4,103			4,828			5,147			5,449

Other		372			352			360			349			364
Unearned income		(931	)		(923	)		(980	)		(1,009	)		(1,037	)

Total, net of unearned income	$	42,480		$	40,835		$	39,451		$	36,303		$	36,995

Supplemental Information
Loans excluding conduit	$	40,676		$	39,094		$	37,519		$	34,080		$	34,514
Market Street Funding Corporation conduit		1,804			1,741			1,932			2,223			2,481

Total loans	$	42,480		$	40,835		$	39,451		$	36,303		$	36,995

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

Total		100	%		100	%		100	%		100	%		100	%

Client relationships >$50 million-total exposure	$	12,986		$	12,596		$	12,000		$	12,396		$	12,662
Client relationships >$50 million-customers		148			140			134			138			139

Consumer Loan Statistic (b)
Net charge-offs to average loans		.19	%		.20	%		.21	%		.27	%		.23	%


Loans Held for Sale

*Period ended - in millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Education loans	$	1,170		$	1,185		$	1,180		$	1,014		$	1,140
Total institutional lending repositioning		14			27			61			70			98
Other		398			245			307			316			293

Total	$	1,582		$	1,457		$	1,548		$	1,400		$	1,531

(a)	Includes amounts for customers of Market Street Funding Corporation.

(b)	Includes consumer, residential mortgage and vehicle leasing. During the second quarter of 2004, we sold our consumer vehicle leasing business.

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THE PNC FINANCIAL SERVICES GROUP, INC.

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

Change in Allowance For Loan and Lease Losses


*Three months ended - in millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Beginning balance	$	593		$	604		$	632		$	648		$	673
Charge-offs
Commercial		(13	)		(26	)		(59	)		(53	)		(56	)
Commercial real estate								(2	)					(1	)
Consumer		(10	)		(11	)		(11	)		(10	)		(9	)
Residential mortgage		(2	)					(1	)		(2	)		(1	)
Lease financing		(1	)		(1	)		(2	)		(4	)		(5	)

Total charge-offs (a)		(26	)		(38	)		(75	)		(69	)		(72	)
Recoveries
Commercial		9			5			8			15			5
Commercial real estate					1						1
Consumer		3			3			3			3			3
Residential mortgage								1						1
Lease financing		1			3			1			1

Total recoveries		13			12			13			20			9
Net charge-offs
Commercial		(4	)		(21	)		(51	)		(38	)		(51	)
Commercial real estate					1			(2	)		1			(1	)
Consumer		(7	)		(8	)		(8	)		(7	)		(6	)
Residential mortgage		(2	)								(2	)
Lease financing					2			(1	)		(3	)		(5	)

Total net charge-offs		(13	)		(26	)		(62	)		(49	)		(63	)
Provision for credit losses		13			8			12			34			50

Acquired allowance (United National)								22
Net change in allowance for unfunded loan commitments and letters of credit		(12	)		7						(1	)		(12	)

Ending balance	$	581		$	593		$	604		$	632		$	648

Change In Allowance For Unfunded Loan Commitments And Letters Of Credit

*Three months ended - in millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Beginning balance	$	84		$	91		$	91		$	90		$	78
Net change in allowance for unfunded loan commitments and letters of credit		12			(7	)					1			12

Ending balance	$	96		$	84		$	91		$	91		$	90

Net Unfunded Commitments

*In millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Net unfunded commitments	$	27,972		$	27,587		$	26,356		$	25,183		$	24,664

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

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	September 30 2004			June 30 2004			March 31 2004			December 31 2003			September 30 2003
Nonaccrual loans
Commercial (a)	$	96		$	119		$	132		$	213		$	286
Lease financing		7			13			12			11			15
Commercial real estate		10			3			3			6			4
Consumer		12			11			10			11			10
Residential mortgage (b)		23			23			26			24			8

Total nonaccrual loans		148			169			183			265			323
Troubled debt restructured loan											1			1

Total nonperforming loans		148			169			183			266			324
Nonperforming loans held for sale (c)		2			4			4			27			35
Foreclosed and other assets
Lease financing		16			17			17			17			18
Residential mortgage		11			11			13			9			9
Other		7			8			12			9			10

Total foreclosed and other assets		34			36			42			35			37

Total nonperforming assets (d)	$	184		$	209		$	229		$	328		$	396

Nonperforming loans to total loans		.35	%		.41	%		.46	%		.73	%		.88	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.42			.49			.56			.87			1.03
Nonperforming assets to total assets		.24			.29			.31			.48			.58

(a) See Note (a) on page 14.

(b) During the fourth quarter of 2003, we 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.	$	2		$	2		$	3		$	10		$	9

(d) Excludes equity management assets carried at estimated fair value (September 30, 2004, June 30, 2004, March 31, 2004, December 31, 2003 and September 30, 2003 amounts include troubled debt restructured assets of $10 million, $10 million, $11 million, $5 million and $7 million, respectively).	$	29		$	32		$	29		$	37		$	38


Change in Nonperforming Assets
*September 30, 2004 - in millions*	Three months ended			Nine months ended
Beginning of period	$	209		$	328
Purchases (United National)					12
Transferred from accrual		54			170
Returned to performing		(12	)		(14	)
Principal reductions and payoffs		(47	)		(186	)
Asset sales		(5	)		(53	)
Charge-offs and valuation adjustments		(15	)		(73	)

September 30	$	184		$	184

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business Segment


*Period ended - in millions*	September 30 2004		June 30 2004		March 31 2004		December 31 2003		September 30 2003
Regional Community Banking
Nonperforming loans (a)	$	74	$	70	$	64	$	74	$	62
Foreclosed and other assets		11		11		11		11		10

Total	$	85	$	81	$	75	$	85	$	72

Wholesale Banking
Nonperforming loans	$	60	$	85	$	102	$	177	$	251
Nonperforming loans held for sale		2		4		4		27		35
Foreclosed and other assets		20		21		25		23		25

Total	$	82	$	110	$	131	$	227	$	311

PNC Advisors
Nonperforming loans	$	10	$	9	$	11	$	11	$	10
Foreclosed and other assets				1						1

Total	$	10	$	10	$	11	$	11	$	11

Other (b)
Nonperforming loans (a)	$	4	$	5	$	6	$	4	$	1
Foreclosed and other assets		3		3		6		1		1

Total	$	7	$	8	$	12	$	5	$	2

Consolidated Totals
Nonperforming loans (c)	$	148	$	169	$	183	$	266	$	324
Nonperforming loans held for sale		2		4		4		27		35
Foreclosed and other assets		34		36		42		35		37

Total	$	184	$	209	$	229	$	328	$	396

Largest Nonperforming Assets at September 30, 2004 - in millions (d)


Ranking	Outstandings			Industry
1	$	16		Air Transportation
2		15		Fabricated Metal Manufacturing
3		8		Individuals
4		7		Real Estate Lessors
5		4		Plastic and Mineral Manufacturing
6		4		Machinery Manufacturing
7		4		Other Transportation
8		3		Air Transportation
9		3		Machinery Manufacturing
10		2		Miscellaneous Manufacturing

Total	$	66

As a percent of nonperforming assets
		35.87	%

(a)	See Note (b) on page 15. Amounts at September 30, 2004, June 30, 2004, March 31, 2004 and December 31, 2003 reflect the impact of this change.

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

(c)	See Note (a) on page 14.

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

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Glossary of Terms

Accounting/administration net fund assets - Net domestic and foreign fund investment assets for which we provide accounting and administration services. We do not include these assets on our 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 we have sole or shared investment authority for our customers/clients. We do not include these assets on our 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 measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with an institution’s target credit rating. As such, economic risk serves as a “common currency” of risk that allows an institution to compare different 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.

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 investment assets held on behalf of clients under safekeeping arrangements. We do not include these assets on our Consolidated Balance Sheet. Investment assets held in custody at other institutions on our behalf are included in the appropriate asset categories on the Consolidated Balance Sheet as if physically held by us.

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 our existing assets less the present value of the expected cash flows of our existing liabilities, plus the present value of the net cash flows of our existing off-balance sheet positions.

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 the sum of net interest income and noninterest income.

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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 us to raise/invest funds with similar maturity and repricing structures, using the 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 we hold for our customers/clients in a non-discretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

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

Nonperforming assets - Nonperforming assets include nonaccrual loans, troubled debt restructured loans, nonaccrual loans held for sale, foreclosed assets 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 previously had been charged off. The amount received is credited to the allowance for loan and lease 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 common equity - Annualized net income divided by average common 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 of legally transforming financial assets into securities.

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

Tangible common capital ratio - Common shareholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights) divided by total assets less goodwill and other intangible assets (excluding mortgage servicing rights).

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.

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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 fund assets serviced – Total domestic and foreign fund investment assets for which we provide related processing services. We do not include these assets on our 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 loan and lease losses, subject to certain limitations.

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

Transaction deposits – The sum of money market and interest-bearing demand deposits and demand and other noninterest-bearing deposits.

Page 19

Business Segment Products and Services

Regional Community Banking provides deposit, lending, cash management and investment services to 2.2 million consumer and small business customers within PNC’s primary geographic footprint.

Wholesale Banking provides lending, treasury management, capital markets-related products and services, and commercial loan servicing 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, funds transfer services, information reporting, and global trade services. Capital markets products include foreign exchange, derivatives, loan syndications and securities underwriting and distribution. Wholesale Banking provides products and services generally within PNC’s primary geographic markets and provides certain products and services nationally.

PNC Advisors provides a broad range of tailored investment, trust and private 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 and products under the BlackRock Solutions^® brand name and financial advisory services to institutional investors.

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.

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