Financial Supplement (unaudited) for First Quarter 2005.

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2005

UNAUDITED

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2005

UNAUDITED


		Page
Consolidated Income Statement		1
Consolidated Balance Sheet		2
Capital and Asset Quality Ratios		2
Results of Businesses
Summary and Reconciliation to Total Consolidated Results		3
Banking Businesses
Regional Community Banking		4
Wholesale Banking		5
PNC Advisors		6-7
Asset Management and Processing Businesses
BlackRock		8
PFPC		9
Details of Net Interest Income, Net Interest Margin and Trading Revenue		10
Details of Noninterest Income, Noninterest Expense and Effective Tax Rate		11
Average Consolidated Balance Sheet		12-13
Details of Loans and Lending Statistics		14
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and Net Unfunded Commitments		15
Details of Nonperforming Assets		16-17
Glossary of Terms		18-20
Business Segment Products and Services		21

The information contained in this Financial Supplement is preliminary, unaudited and based on data available at April 21, 2005. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. 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.

The average full-time equivalent employee (FTE) statistics disclosed in this Financial Supplement for each business segment 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 (SEC) a proxy statement/prospectus and will file other relevant documents concerning the merger of Riggs with and into PNC (Merger). We 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 in the proxy statement/prospectus, because they will contain important information. Investors will be able to obtain these documents free of charge at the SEC’s 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.		Page 1

Consolidated Income Statement (Unaudited)


*For the three months ended - in millions, except per share data*	March 31 2005			December 31 2004		September 30 2004			June 30 2004		March 31 2004
Interest Income
Loans and fees on loans	$	578		$	547	$	516		$	490	$	490
Securities available for sale and held to maturity		173			154		139			130		145
Other		53			42		30			38		31

Total interest income		804			743		685			658		666

Interest Expense
Deposits		182			152		121			107		104
Borrowed funds		116			88		73			70		68

Total interest expense		298			240		194			177		172

Net interest income		506			503		491			481		494
Provision for credit losses		8			19		13			8		12

Net interest income less provision for credit losses		498			484		478			473		482

Noninterest Income
Asset management		314			256		239			252		253
Fund servicing		220			209		204			200		204
Service charges on deposits		59			65		65			63		59
Brokerage		55			53		52			56		58
Consumer services		66			68		66			67		63
Corporate services		107			120		100			128		125
Equity management gains		32			9		16			35		7
Net securities gains (losses)		(9	)		10		16			14		15
Other		129			114		80			95		127

Total noninterest income		973			904		838			910		911

Noninterest Expense
Compensation		479			452		500			414		389
Employee benefits		83			82		76			77		74
Net occupancy		73			64		68			67		68
Equipment		74			74		72			70		74
Marketing		20			24		19			24		20
Other		270			253		246			258		270

Total noninterest expense		999			949		981			910		895

Income before minority and noncontrolling interests and income taxes		472			439		335			473		498
Minority and noncontrolling interests in income (loss) of consolidated entities		6			5		(13	)		11		7
Income taxes		112			127		90			158		163

Net income	$	354		$	307	$	258		$	304	$	328

Earnings Per Common Share
Basic	$	1.26		$	1.09	$	.92		$	1.08	$	1.16
Diluted	$	1.24		$	1.08	$	.91		$	1.07	$	1.15

Average Common Shares Outstanding
Basic		281			281		281			281		282
Diluted		284			283		283			283		284


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Assets
Cash and due from banks	$	2,908		$	3,230		$	3,005		$	3,065		$	2,787
Federal funds sold and resale agreements		1,252			1,635			1,154			1,096			1,979
Other short-term investments, including trading securities		2,354			1,848			1,801			1,335			1,243
Loans held for sale		2,067			1,670			1,582			1,457			1,548
Securities available for sale and held to maturity		18,449			16,761			16,824			14,954			16,941
Loans, net of unearned income of $872, $902, $931, $923 and $980		44,674			43,495			42,480			40,835			39,451
Allowance for loan and lease losses		(600	)		(607	)		(581	)		(593	)		(604	)

Net loans		44,074			42,888			41,899			40,242			38,847
Goodwill		2,976			3,001			3,007			2,978			2,975
Other intangible assets		613			354			348			351			341
Other		8,666			8,336			7,678			7,641			7,454

Total assets	$	83,359		$	79,723		$	77,298		$	73,119		$	74,115

Liabilities
Deposits
Noninterest-bearing	$	12,808		$	12,915		$	12,461		$	12,246		$	11,879
Interest-bearing		42,361			40,354			38,701			37,748			36,246

Total deposits		55,169			53,269			51,162			49,994			48,125
Borrowed funds
Federal funds purchased		995			219			2,008			1,069			2,648
Repurchase agreements		2,077			1,376			1,595			1,163			1,279
Bank notes and senior debt		3,662			2,383			2,997			2,796			2,829
Subordinated debt		3,988			4,050			3,569			3,510			3,837
Commercial paper		2,381			2,251			1,805			1,743			1,934
Other borrowed funds		1,411			1,685			945			656			1,195

Total borrowed funds		14,514			11,964			12,919			10,937			13,722
Allowance for unfunded loan commitments and letters of credit		78			75			96			84			91
Accrued expenses		2,288			2,406			2,402			2,221			2,313
Other		3,199			4,032			2,908			2,400			2,216

Total liabilities		75,248			71,746			69,487			65,636			66,467

Minority and noncontrolling interests in consolidated entities		532			504			499			419			418
Shareholders’ Equity
Preferred stock (a)
Common stock - $5 par value
Authorized 800 shares, issued 353 shares		1,764			1,764			1,764			1,764			1,764
Capital surplus		1,275			1,265			1,246			1,235			1,209
Retained earnings		8,485			8,273			8,107			7,991			7,829
Deferred compensation expense		(42	)		(51	)		(52	)		(54	)		(27	)
Accumulated other comprehensive (loss) income		(175	)		(54	)		(25	)		(139	)		180
Common stock held in treasury at cost: 70, 70, 70, 71 and 71 shares		(3,728	)		(3,724	)		(3,728	)		(3,733	)		(3,725	)

Total shareholders’ equity		7,579			7,473			7,312			7,064			7,230

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	83,359		$	79,723		$	77,298		$	73,119		$	74,115

CAPITAL RATIOS
Tier 1 Risk-based (b)		8.7	%		9.0	%		9.0	%		9.1	%		9.1	%
Total Risk-based (b)		12.5			13.0			12.5			12.9			13.1
Leverage (b)		7.3			7.6			7.7			7.7			7.7
Tangible common		5.3			5.7			5.6			5.6			5.8
Shareholders’ equity to total assets		9.09			9.37			9.46			9.66			9.76
Common shareholders’ equity to total assets		9.08			9.36			9.45			9.65			9.74
ASSET QUALITY RATIOS
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.35	%		.39	%		.42	%		.49	%		.56	%
Nonperforming loans to loans		.29			.33			.35			.41			.46
Net charge-offs to average loans (For the three months ended)		.11			.13			.12			.26			.64
Allowance for loan and lease losses to loans		1.34			1.40			1.37			1.45			1.53
Allowance for loan and lease losses to nonperforming loans		458			424			393			351			330

(a)	Less than $.5 million at each date.

(b)	Estimated for March 31, 2005.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Results of Businesses - Summary and Reconciliation to Total Consolidated Results (Unaudited) (a)

Three months ended – dollars in millions


Earnings	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Banking businesses
Regional Community Banking	$	121		$	143		$	134		$	125		$	102
Wholesale Banking		110			108			100			113			122
PNC Advisors		28			24			24			27			31

Total banking businesses		259			275			258			265			255

Asset management and processing businesses
BlackRock (b)		47			50			(10	)		48			55
PFPC		23			20			17			17			16

Total asset management and processing businesses		70			70			7			65			71

Total business segment earnings		329			345			265			330			326
Minority interest in (income) loss of BlackRock		(14	)		(15	)		3			(14	)		(16	)
Other		39			(23	)		(10	)		(12	)		18

Total consolidated earnings	$	354		$	307		$	258		$	304		$	328


Revenue (c)	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Banking businesses
Regional Community Banking	$	506		$	536		$	525		$	511		$	501
Wholesale Banking		312			333			299			322			317
PNC Advisors		156			154			151			154			170

Total banking businesses		974			1,023			975			987			988

Asset management and processing businesses
BlackRock		250			188			171			184			182
PFPC		230			209			203			199			203

Total asset management and processing businesses		480			397			374			383			385

Total business segment revenue		1,454			1,420			1,349			1,370			1,373
Other		31			(7	)		(13	)		25			35

Total consolidated revenue	$	1,485		$	1,413		$	1,336		$	1,395		$	1,408

(a)

See the Review of Businesses section of Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2004 (2004 Form 10-K) for additional information regarding presentation of results for 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 BlackRock’s 2002 Long-Term Retention and Incentive Plan (LTIP) charge. Our 2004 Form 10-K has additional information on the LTIP and related charges under Note 22 Stock-Based Compensation Plans in the Notes To Consolidated Financial Statements.

(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 more meaningful 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):


	March 31 2005		December 31 2004		September 30 2004		June 30 2004		March 31 2004
Total consolidated revenue, book (GAAP) basis	$	1,479	$	1,407	$	1,329	$	1,391	$	1,405
Taxable-equivalent adjustment		6		6		7		4		3

Total consolidated revenue, taxable-equivalent basis	$	1,485	$	1,413	$	1,336	$	1,395	$	1,408


Reconciliation of Total Banking Businesses Earnings
*Three months ended-dollars in millions*	March 31 2005			March 31 2004
Total banking businesses earnings, as reported	$	259		$	255
Less: net gains on institutional loans held for sale, net of tax		1			19

Total banking businesses earnings, as adjusted	$	258		$	236
Increase in total banking businesses earnings, as reported		2	%
Increase in total banking businesses earnings, as adjusted		9	%

We believe that total banking businesses earnings, as adjusted, provides useful information to investors. Net gains on institutional loans held for sale have declined significantly compared with the first quarter of 2004 as the related remaining institutional lending held for sale loan portfolio has declined from $61 million at March 31, 2004 to $2 million at March 31, 2005. In addition, the assets and underlying relationships reflected in this portfolio are not included in our ongoing business strategy for Wholesale Banking.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Regional Community Banking (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
INCOME STATEMENT
Net interest income	$	341		$	345		$	342		$	340		$	333
Noninterest income
Service charges on deposits		57			62			63			60			57
Investment products		28			27			27			29			29
Other		80			102			93			82			82

Total noninterest income		165			191			183			171			168

Total revenue		506			536			525			511			501
Provision for credit losses		14			14			13			6			29
Noninterest expense
Compensation and employee benefits		128			136			132			130			136
Net occupancy and equipment		66			63			66			66			68
Other		105			98			102			111			108

Total noninterest expense		299			297			300			307			312

Pretax earnings		193			225			212			198			160
Income taxes		72			82			78			73			58

Earnings	$	121		$	143		$	134		$	125		$	102

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	11,863		$	11,652		$	11,283		$	10,734		$	9,478
Indirect		892			881			879			836			774
Other consumer		405			464			514			533			682

Total consumer		13,160			12,997			12,676			12,103			10,934
Commercial		4,372			4,220			4,113			3,943			3,901
Floor plan		1,013			961			929			1,037			947
Residential mortgage		677			708			737			776			813
Other		26			26			25			24			28

Total loans		19,248			18,912			18,480			17,883			16,623
Goodwill		991			1,000			1,005			1,005			994
Loans held for sale		1,345			1,221			1,238			1,156			1,115
Other assets		1,386			1,443			1,447			1,587			2,060

Total assets	$	22,970		$	22,576		$	22,170		$	21,631		$	20,792

Deposits
Noninterest-bearing demand	$	6,715		$	6,883		$	6,712		$	6,464		$	6,248
Interest-bearing demand		6,996			7,098			6,937			6,916			6,916
Money market		12,046			11,937			12,112			12,465			12,356

Total transaction deposits		25,757			25,918			25,761			25,845			25,520
Savings		2,724			2,727			2,659			2,548			2,508
Certificates of deposit		9,833			9,363			8,775			8,421			8,565

Total deposits		38,314			38,008			37,195			36,814			36,593
Other liabilities		132			164			185			223			432
Capital		2,447			2,420			2,375			2,364			2,362

Total funds	$	40,893		$	40,592		$	39,755		$	39,401		$	39,387

PERFORMANCE RATIOS
Return on capital		20	%		24	%		22	%		21	%		17	%
Noninterest income to total revenue		33			36			35			33			34
Efficiency		59			55			57			60			62

OTHER INFORMATION (b)
Total nonperforming assets (c)	$	84		$	91		$	85		$	81		$	75
Net charge-offs (c)	$	14		$	11		$	10		$	10		$	32
Annualized net charge-off ratio (c)		.29	%		.23	%		.22	%		.22	%		.77	%
Home equity portfolio credit statistics:
% of first lien positions		51	%		51	%		51	%		51	%		50	%
Weighted average loan-to-value ratios		71	%		71	%		71	%		71	%		72	%
Weighted average FICO scores		716			716			717			717			713
Loans 90 days past due		.20	%		.22	%		.22	%		.20	%		.23	%
Gains on sales of education loans (d)	$	1		$	13		$	15		$	2
Average FTE staff		9,886			10,109			10,251			10,254			10,379
ATMs		3,610			3,581			3,555			3,528			3,486
Branches		770			774			774			775			769
Consumer and small business checking relationships		1,761,000			1,741,000			1,732,000			1,700,000			1,679,000
Consumer DDA households using online banking		743,000			711,000			690,000			663,000			637,000
% of consumer DDA households using online banking		47	%		45	%		44	%		43	%		42	%
Consumer DDA households using online bill payment		131,000			112,000			108,000			112,000			102,000
% of consumer DDA households using online
bill payment		8	%		7	%		7	%		7	%		7	%
Small business deposits
Noninterest-bearing	$	4,086		$	4,203		$	4,067		$	3,908		$	3,756
Interest-bearing		1,556			1,764			1,574			1,515			1,651
Money market		2,630			2,836			2,788			2,707			2,510
Certificates of deposit		352			318			304			300			324

(a)	See Notes (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 Note (a) on page 16.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Wholesale Banking (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions except as noted*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
INCOME STATEMENT
Net interest income	$	176		$	183		$	180		$	171		$	164
Noninterest income
Net commercial mortgage banking
Net gains on loan sales		9			20			6			14			10
Servicing and other fees, net of amortization		14			12			12			12			11
Net gains on institutional loans held for sale		2			2			5			17			28
Other		111			116			96			108			104

Noninterest income		136			150			119			151			153

Total revenue		312			333			299			322			317
Provision for credit losses		(4	)		9			1			8			(13	)
Noninterest expense		167			181			166			162			162

Pretax earnings		149			143			132			152			168
Noncontrolling interests in income of consolidated entities		(11	)		(11	)		(12	)		(10	)		(10	)
Income taxes		50			46			44			49			56

Earnings	$	110		$	108		$	100		$	113		$	122

AVERAGE BALANCE SHEET
Loans
Corporate banking (b)	$	10,417		$	10,139		$	9,776		$	9,669		$	9,875
Commercial real estate		1,807			1,824			1,902			1,934			1,665
Commercial - real estate related		1,782			1,743			1,704			1,465			1,585
PNC Business Credit		4,050			3,976			3,838			3,788			3,608

Total loans (b)		18,056			17,682			17,220			16,856			16,733
Loans held for sale		598			555			349			493			484
Other assets		5,430			4,514			4,010			4,640			4,630

Total assets	$	24,084		$	22,751		$	21,579		$	21,989		$	21,847

Deposits	$	8,683		$	8,536		$	7,882		$	6,981		$	6,694
Commercial paper		2,127			1,954			1,679			1,815			2,111
Other liabilities		3,777			3,395			2,944			3,583			3,725
Capital		1,692			1,590			1,586			1,659			1,854

Total funds	$	16,279		$	15,475		$	14,091		$	14,038		$	14,384

PERFORMANCE RATIOS
Return on capital		26	%		27	%		25	%		27	%		26	%
Noninterest income to total revenue		44			45			40			47			48
Efficiency		54			54			56			50			51

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	98		$	93		$	89		$	86		$	83
Acquisitions/additions		14			12			11			11			7
Repayments/transfers		(7	)		(7	)		(7	)		(8	)		(4	)

End of period	$	105		$	98		$	93		$	89		$	86

OTHER INFORMATION
Consolidated revenue from:
Treasury Management	$	97		$	99		$	95		$	91		$	88
Capital Markets	$	42		$	44		$	27		$	37		$	32
Midland Loan Services	$	30		$	27		$	30		$	26		$	25
Equipment Leasing	$	18		$	21		$	21		$	21		$	21
Total loans (c)	$	18,595		$	17,959		$	17,650		$	17,171		$	16,728
Total nonperforming assets (c)	$	65		$	71		$	82		$	110		$	131
Net charge-offs	$	(2	)	$	3					$	16		$	30
Average FTE staff		3,128			3,129			3,098			3,074			3,038
Net carrying amount of commercial mortgage servicing rights (c)	$	258		$	242		$	229		$	226		$	211

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

(b)	Includes Market Street Funding Corporation. See Supplemental Average Balance Sheet Information on page 12.

(c)	Presented as of period-end.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

PNC Advisors (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions except as noted*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
INCOME STATEMENT
Net interest income	$	28		$	28		$	29		$	27		$	27
Noninterest income
Investment management and trust		81			79			77			79			81
Brokerage		28			28			25			28			30
Other		19			19			20			20			32

Total noninterest income		128			126			122			127			143

Total revenue		156			154			151			154			170
Provision for credit losses					(1	)		1			(2	)		1
Noninterest expense		112			117			112			114			120

Pretax earnings		44			38			38			42			49
Income taxes		16			14			14			15			18

Earnings	$	28		$	24		$	24		$	27		$	31

AVERAGE BALANCE SHEET
Loans
Consumer	$	1,676		$	1,640		$	1,568		$	1,475		$	1,386
Residential mortgage		100			109			118			137			154
Commercial		425			384			412			417			415
Other		277			285			293			303			292

Total loans		2,478			2,418			2,391			2,332			2,247
Other assets		401			420			393			405			413

Total assets	$	2,879		$	2,838		$	2,784		$	2,737		$	2,660

Deposits	$	2,435		$	2,314		$	2,252		$	2,298		$	2,189
Other liabilities		276			299			276			272			268
Capital		301			297			305			301			325

Total funds	$	3,012		$	2,910		$	2,833		$	2,871		$	2,782

PERFORMANCE RATIOS (b)
Return on capital		38	%		32	%		31	%		36	%		38	%
Noninterest income to total revenue		82			82			81			82			84

ASSETS UNDER ADMINISTRATION (in billions) (c) (d)
Assets under management
Personal	$	40		$	41		$	39		$	40		$	39
Institutional		9			9			9			9			9

Total	$	49		$	50		$	48		$	49		$	48

Asset Type
Equity	$	30		$	30		$	28		$	29		$	28
Fixed income		13			14			14			14			14
Liquidity/Other		6			6			6			6			6

Total	$	49		$	50		$	48		$	49		$	48

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

Total	$	92		$	93		$	91		$	91		$	94

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

Total	$	92		$	93		$	91		$	91		$	94

OTHER INFORMATION (d)
Total nonperforming assets	$	9		$	9		$	10		$	10		$	11
Brokerage assets administered (in billions)	$	24		$	25		$	23		$	23		$	24
Full service brokerage offices		73			75			75			75			76
Financial consultants		432			436			435			436			444
Margin loans	$	249		$	254		$	267		$	268		$	270
Average FTE staff		2,816			2,806			2,791			2,787			2,804

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

(b)	See page 7 for information regarding efficiency ratios.

(c)	Excludes brokerage assets administered.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

PNC Advisors (Unaudited)

Efficiency ratios


	For the quarter ended
	March 31 2005		December 31 2004		September 30 2004		June 30 2004		March 31 2004
Efficiency, GAAP basis (a)	72	%	76	%	74	%	74	%	71	%
Efficiency, as adjusted (b)	63	%	68	%	66	%	64	%	61	%

(a)	Calculated as noninterest expense divided by the sum of net interest income and noninterest income.

(b)

Calculated by excluding the impact of brokerage firm activities included within the PNC Advisors business segment. Brokerage firm activities excluded are the principal activities of Hilliard Lyons on a management reporting basis, including client-related brokerage and trading, investment banking and investment management. Industry-wide efficiency measures for brokerage firms and asset management firms differ significantly due primarily to the highly variable compensation structure of brokerage firms. We believe the disclosure of an efficiency ratio for PNC Advisors excluding the impact of these brokerage firm activities is meaningful for investors as it provides a more relevant basis of comparison with other asset management firms.

Reconciliation of GAAP amounts with amounts used in the calculation of adjusted efficiency ratio:


	For the quarter ended
*Dollars in millions*	March 31 2005		December 31 2004		September 30 2004		June 30 2004		March 31 2004
Revenue, GAAP basis	$	156	$	154	$	151	$	154	$	170
Less: brokerage firm activities		51		53		47		52		55

Revenue, as adjusted	$	105	$	101	$	104	$	102	$	115

Noninterest expense, GAAP basis	$	112	$	117	$	112	$	114	$	120
Less: brokerage firm activities		46		47		44		48		50

Noninterest expense, as adjusted	$	66	$	70	$	68	$	66	$	70


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

BlackRock (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* (a) *Dollars in millions except as noted*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
INCOME STATEMENT
Investment advisory and administration fees	$	212		$	163		$	148		$	162		$	160
Other income		38			25			23			22			22

Total revenue		250			188			171			184			182
Operating expense		161			112			94			113			104
Operating expense - LTIP charge		14			13			91
Fund administration and servicing costs		9			7			9			8			8

Total expense		184			132			194			121			112

Operating income (loss)		66			56			(23	)		63			70
Nonoperating income		8			8			7			15			6

Pretax earnings (loss)		74			64			(16	)		78			76
Minority interest					1						4
Income taxes		27			13			(6	)		26			21

Earnings (loss)	$	47		$	50		$	(10	)	$	48		$	55

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	444		$	184		$	184		$	186		$	186
Other assets		1,050			961			893			780			723

Total assets	$	1,494		$	1,145		$	1,077		$	966		$	909

Liabilities and minority interest	$	648		$	377		$	342		$	211		$	186
Stockholders’ equity		846			768			735			755			723

Total liabilities and stockholders’ equity	$	1,494		$	1,145		$	1,077		$	966		$	909

PERFORMANCE DATA
Return on equity		23	%		26	%		(5	)%		26	%		31	%
Operating margin (b)		38			38			32			36			41
Diluted earnings (loss) per share	$	.70		$	.75		$	(.15	)	$	.73		$	.84

ASSETS UNDER MANAGEMENT (in billions) (period end)
Separate accounts
Fixed income	$	240		$	216		$	211		$	200		$	202
Liquidity		7			7			8			7			6
Liquidity - securities lending		7			7			9			9			9
Equity		19			10			8			9			9
Alternative investment products		19			8			7			6			6

Total separate accounts		292			248			243			231			232
Mutual funds (c)
Fixed income		25			25			24			24			25
Liquidity		60			64			51			50			59
Equity		14			5			5			5			5

Total mutual funds		99			94			80			79			89

Total assets under management	$	391		$	342		$	323		$	310		$	321

OTHER INFORMATION
Average FTE staff		1,320			1,062			1,063			984			947

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

(b)

Calculated as operating income, adjusted for the LTIP charges, SSRM acquisition costs, and appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans, divided by total revenue less reimbursable property management compensation and 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	$	66		$	56		$	(23	)	$	63		$	70
Add back: LTIP charge		14			13			91
Less: portion of LTIP to be funded by BlackRock		(2	)		(2	)		(17	)
Add back: SSRM acquisition costs		9
Add back: appreciation on Rabbi trust assets		2			2						1			1

Operating income, as adjusted	$	89		$	69		$	51		$	64		$	71

Total revenue, GAAP basis	$	250		$	188		$	171		$	184		$	182
Less: reimbursable property management compensation		4
Less: fund administration and servicing costs		9			7			9			8			8

Revenue used for operating margin calculation, as reported	$	237		$	181		$	162		$	176		$	174

Operating margin, GAAP basis		26	%		30	%		(13	)%		34	%		38	%
Operating margin, as adjusted		38	%		38	%		32	%		36	%		41	%

We believe that operating margin, as adjusted, is a more relevant indicator of management’s ability to effectively employ BlackRock’s resources. The portion of the LTIP charges 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. Appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans has been excluded because investment performance of these assets has a nominal impact on net income. Reimbursable property management compensation represents compensation and benefits paid to certain BlackRock Realty Advisors, Inc. (“Realty”) personnel. These employees are retained on Realty’s payroll when properties are acquired by Realty’s clients. The related compensation and benefits are fully reimbursed by Realty’s clients and have been excluded from operating margin, as adjusted, because they bear no economic cost to BlackRock. 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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

PFPC (Unaudited) (a)


*Three months ended* *Dollars in millions except as noted*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
INCOME STATEMENT
Fund servicing revenue	$	220		$	209		$	203		$	199		$	203
Other revenue		10

Total revenue		230			209			203			199			203
Operating expense		173			160			158			158			167
Amortization (accretion) of other intangibles, net		3			4			3			(1	)		(3	)

Operating income		54			45			42			42			39
Nonoperating income (b)								1						2
Debt financing		8			12			14			14			14
Debt prepayment penalty		8

Pretax earnings		38			33			29			28			27
Income taxes		15			13			12			11			11

Earnings	$	23		$	20		$	17		$	17		$	16

AVERAGE BALANCE SHEET
Goodwill and other intangible assets	$	1,014		$	1,017		$	1,021		$	1,024		$	1,027
Other assets		1,250			1,069			1,052			1,054			952

Total assets	$	2,264		$	2,086		$	2,073		$	2,078		$	1,979

Debt financing	$	1,049		$	1,067		$	1,102		$	1,137		$	1,163
Other liabilities		952			756			711			681			550
Capital		263			263			260			260			266

Total funds	$	2,264		$	2,086		$	2,073		$	2,078		$	1,979

PERFORMANCE RATIOS
Return on capital		35	%		30	%		26	%		26	%		23	%
Operating margin (c)		23			22			21			21			19

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)
Domestic	$	680		$	660		$	609		$	612		$	621
Foreign (d)		65			61			58			53			48

Total	$	745		$	721		$	667		$	665		$	669

Asset type
Money market	$	340		$	341		$	322		$	326		$	337
Equity		245			230			203			200			198
Fixed income		107			101			97			94			95
Other		53			49			45			45			39

Total	$	745		$	721		$	667		$	665		$	669

Custody fund assets (in billions)	$	462		$	451		$	418		$	416		$	411

Shareholder accounts (in millions)
Transfer agency		20			21			21			21			22
Subaccounting		39			36			34			34			33

Total		59			57			55			55			55

OTHER INFORMATION
Average FTE staff		4,833			4,659			4,614			4,816			4,910

(a)	See Note (a) on page 3.

(b)	Net of nonoperating expense.

(c)	Operating income divided by total revenue.

(d)	Represents net assets serviced offshore.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

Details of Net Interest Income, Net Interest Margin and Trading Revenue (Unaudited)

Taxable-equivalent basis


	For the quarter ended
Net Interest Income *In millions*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Interest income
Loans and fees on loans	$	580		$	549		$	518		$	491		$	492
Securities available for sale and held to maturity		174			155			141			131			146
Other		56			45			33			40			31

Total interest income		810			749			692			662			669

Interest expense
Deposits		182			152			121			107			104
Borrowed funds		116			88			73			70			68

Total interest expense		298			240			194			177			172

Net interest income (a)	$	512		$	509		$	498		$	485		$	497


	For the quarter ended
Net Interest Margin	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Average yields/rates
Yield on interest-earning assets
Loans and fees on loans		5.30	%		5.04	%		4.89	%		4.89	%		5.05	%
Securities available for sale and held to maturity		4.13			3.85			3.67			3.33			3.57
Other		3.14			3.25			2.89			3.07			2.54
Total yield on interest-earning assets		4.79			4.59			4.44			4.34			4.44
Rate on interest-bearing liabilities
Deposits		1.80			1.52			1.27			1.15			1.16
Borrowed funds		3.09			2.76			2.45			2.21			2.07
Total rate on interest-bearing liabilities		2.15			1.82			1.55			1.42			1.40

Interest rate spread		2.64			2.77			2.89			2.92			3.04
Impact of noninterest-bearing sources		.38			.35			.30			.26			.26

Net interest margin		3.02	%		3.12	%		3.19	%		3.18	%		3.30	%


	For the quarter ended
Trading Revenue *In millions*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Net interest income	$	2		$	4		$	3		$	4		$	2
Other noninterest income		50			44			16			30			23

Total trading revenue	$	52		$	48		$	19		$	34		$	25

Securities underwriting and trading	$	6		$	23		$	11		$	16		$	10
Foreign exchange		8			9			8			7			7
Financial derivatives		38			16						11			8

Total trading revenue	$	52		$	48		$	19		$	34		$	25

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


	For the quarter ended
*In millions*	March 31 2005		December 31 2004		September 30 2004		June 30 2004		March 31 2004
Net interest income, GAAP basis	$	506	$	503	$	491	$	481	$	494
Taxable-equivalent adjustment		6		6		7		4		3

Net interest income, taxable-equivalent basis	$	512	$	509	$	498	$	485	$	497


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Details of Noninterest Income, Noninterest Expense and Effective Tax Rate (Unaudited)

In millions


	For the quarter ended
Noninterest Income	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Asset management	$	314		$	256		$	239		$	252		$	253
Fund servicing		220			209			204			200			204
Service charges on deposits		59			65			65			63			59
Brokerage		55			53			52			56			58
Consumer services		66			68			66			67			63
Corporate services		107			120			100			128			125
Equity management gains		32			9			16			35			7
Net securities gains (losses)		(9	)		10			16			14			15
Other (a)		129			114			80			95			127

Total noninterest income	$	973		$	904		$	838		$	910		$	911

Included in “Corporate services” above
Net gains on institutional loans held for sale	$	2		$	2		$	5		$	17		$	28
Net gains on sales of commercial mortgages	$	9		$	20		$	6		$	14		$	10

Included in “Other” above
Gains on sales of education loans	$	1		$	13		$	15		$	2

Noninterest income to total revenue		66	%		64	%		63	%		65	%		65	%

	For the quarter ended
Noninterest Expense	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Compensation	$	479		$	452		$	500		$	414		$	389
Employee benefits		83			82			76			77			74
Net occupancy		73			64			68			67			68
Equipment		74			74			72			70			74
Marketing		20			24			19			24			20
Other		270			253			246			258			270

Total noninterest expense (b)	$	999		$	949		$	981		$	910		$	895

Efficiency		68	%		67	%		74	%		65	%		64	%

Bank efficiency (c)		63	%		64	%		65	%		63	%		60	%

Effective tax rate (d)		23.7	%		28.9	%		26.9	%		33.4	%		32.7	%

(a)	“Other” also includes the “Other noninterest income” component of trading revenue. See page 10.

(b)

The quarters ended March 31, 2005, December 31, 2004 and September 30, 2004 included $15 million, $14 million and $96 million, respectively, of charges related to the BlackRock LTIP. First quarter 2005 charges are comprised of $15 million of compensation expense. Fourth quarter 2004 charges are comprised of $13 million of compensation expense and $1 million of “Other” noninterest expense. Third quarter 2004 charges are comprised of $89 million of compensation expense, $2 million of employee benefits expense and $5 million of “Other” noninterest expense. See our 2004 Form 10-K for further information on the BlackRock LTIP.

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

(d)	The first quarter 2004 effective tax rate reflects a $9 million benefit associated with the resolution of an audit performed by New York State on BlackRock’s state income tax returns filed from 1998 through 2001.

The third quarter 2004 effective tax rate reflects a $14 million reduction in income tax expense following our determination that we no longer require an income tax reserve related to bank-owned life insurance. See our third quarter 2004 Quarterly Report on Form 10-Q for additional information.

The fourth quarter 2004 effective tax rate reflects a $10 million income tax benefit resulting from the release of reserves allocated to BlackRock’s New York City tax liability due to the receipt of a favorable preliminary audit finding for the tax years 1998 through 2000.

The first quarter 2005 effective tax rate reflects the $45 million impact of the reversal of certain deferred tax liabilities in connection with the transfer of our ownership interest in BlackRock from PNC Bank, National Association to our intermediate bank holding company, PNC Bancorp, Inc. See Note 31 Subsequent Events in the Notes To Consolidated Financial Statements in our 2004 Form 10-K for additional information.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Average Consolidated Balance Sheet (Unaudited)


*Three months ended - in millions*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Assets
Interest-earning assets
Securities available for sale and held to maturity
Securities available for sale
U.S. Treasury and government agencies/corporations	$	6,897		$	6,895		$	6,288		$	6,654		$	6,432
Other debt		9,631			8,846			8,667			8,624			9,293
State and municipal		172			175			216			225			264
Corporate stocks and other		172			188			201			259			282

Total securities available for sale		16,872			16,104			15,372			15,762			16,271
Securities held to maturity					1			2			2			2

Total securities available for sale and held to maturity		16,872			16,105			15,374			15,764			16,273
Loans, net of unearned income
Commercial		17,935			17,312			16,915			16,445			15,827
Commercial real estate		2,015			2,080			2,120			2,100			2,249
Consumer		15,641			15,280			14,673			13,968			12,719
Residential mortgage		4,855			4,683			4,354			3,622			3,492
Lease financing		3,041			3,216			3,182			3,437			4,050
Other		495			502			507			497			517

Total loans, net of unearned income		43,982			43,073			41,751			40,069			38,854
Loans held for sale		1,941			1,771			1,578			1,636			1,560
Federal funds sold and resale agreements		2,249			1,274			1,283			1,896			2,235
Other		2,937			2,302			1,746			1,551			1,162

Total interest-earning assets		67,981			64,525			61,732			60,916			60,084
Noninterest-earning assets
Allowance for loan and lease losses		(611	)		(582	)		(593	)		(603	)		(653	)
Cash and due from banks		2,987			3,038			2,851			2,793			2,895
Other assets		13,005			11,791			11,372			10,762			10,697

Total assets	$	83,362		$	78,772		$	75,362		$	73,868		$	73,023

Supplemental Average Balance Sheet Information
Loans excluding conduit	$	41,871		$	41,121		$	40,074		$	38,257		$	36,747
Market Street Funding Corporation conduit		2,111			1,952			1,677			1,812			2,107

Total loans	$	43,982		$	43,073		$	41,751		$	40,069		$	38,854

Trading Assets
Securities (a)	$	1,883		$	1,348		$	1,003		$	740		$	385
Resale agreements (b)		1,249			184			155			142			185
Financial derivatives (c)		679			668			604			541			608

Total trading assets	$	3,811		$	2,200		$	1,762		$	1,423		$	1,178

(a)	Included in “Other interest-earning assets” above.

(b)	Included in “Federal funds sold and resale agreements” above.

(c)	Included in “Other noninterest-earning assets” above.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Average Consolidated Balance Sheet (Unaudited) (Continued)


*Three months ended - in millions*	March 31 2005		December 31 2004		September 30 2004		June 30 2004		March 31 2004
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	16,562	$	16,328	$	15,916	$	16,027	$	15,581
Demand		7,965		7,999		7,857		7,878		7,873
Savings		2,831		2,819		2,730		2,595		2,590
Retail certificates of deposit		10,296		9,761		9,100		8,650		8,780
Other time		902		892		825		680		343
Time deposits in foreign offices		2,373		1,628		1,561		1,485		806

Total interest-bearing deposits		40,929		39,427		37,989		37,315		35,973
Borrowed funds
Federal funds purchased		1,659		1,676		1,940		2,303		1,912
Repurchase agreements		2,306		1,906		1,158		1,508		1,157
Bank notes and senior debt		2,663		2,535		2,709		2,752		2,752
Subordinated debt		3,911		3,476		3,411		3,545		3,593
Commercial paper		2,344		1,947		1,679		1,815		2,111
Other borrowed funds		2,159		1,070		858		633		1,622

Total borrowed funds		15,042		12,610		11,755		12,556		13,147

Total interest-bearing liabilities		55,971		52,037		49,744		49,871		49,120
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity
Demand and other noninterest-bearing deposits		12,432		12,539		12,477		11,681		11,350
Allowance for unfunded loan commitments and letters of credit		76		96		84		90		90
Accrued expenses and other liabilities		6,856		6,283		5,470		4,773		5,020
Minority and noncontrolling interests in consolidated entities		527		501		466		419		434
Shareholders’ equity		7,500		7,316		7,121		7,034		7,009

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	83,362	$	78,772	$	75,362	$	73,868	$	73,023

Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	40,929	$	39,427	$	37,989	$	37,315	$	35,973
Demand and other noninterest-bearing deposits		12,432		12,539		12,477		11,681		11,350

Total deposits	$	53,361	$	51,966	$	50,466	$	48,996	$	47,323

Transaction deposits	$	36,959	$	36,866	$	36,250	$	35,586	$	34,804

Common shareholders’ equity	$	7,492	$	7,308	$	7,113	$	7,026	$	7,000

Trading Liabilities
Securities sold short (a)	$	1,610	$	539	$	402	$	254	$	277
Repurchase agreements and other borrowings (b)		1,185		479		302		127		86
Financial derivatives (c)		519		526		492		423		559

Total trading liabilities	$	3,314	$	1,544	$	1,196	$	804	$	922

(a)	Included in “Other borrowed funds” and “Accrued expenses and other liabilities” above.

(b)	Included in “Repurchase agreements” and “Other borrowed funds” above.

(c)	Included in “Accrued expenses and other liabilities” above.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

Details of Loans and Lending Statistics (Unaudited)

Loans


*Period ended - in millions*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Commercial
Retail/wholesale	$	5,236		$	4,961		$	4,739		$	4,580		$	4,370
Manufacturing		4,327			3,944			3,870			3,861			3,759
Other service providers		1,820			1,787			1,648			1,571			1,631
Real estate related		2,179			2,104			2,096			2,029			1,862
Financial services		1,308			1,145			1,274			1,262			1,126
Health care		560			560			527			516			495
Other		3,043			2,937			2,961			2,894			2,758

Total commercial		18,473			17,438			17,115			16,713			16,001

Commercial real estate
Real estate projects		1,404			1,460			1,513			1,530			1,521
Mortgage		521			520			527			575			534

Total commercial real estate		1,925			1,980			2,040			2,105			2,055

Equipment lease financing		3,719			3,907			3,949			3,818			3,859

Total commercial lending		24,117			23,325			23,104			22,636			21,915

Consumer
Home equity		12,968			12,734			12,377			11,946			11,160
Automobile		854			836			842			825			762
Other		1,953			2,036			1,684			1,676			1,597

Total consumer		15,775			15,606			14,903			14,447			13,519

Residential mortgage		5,007			4,772			4,672			3,906			3,537
Vehicle lease financing		158			189			228			285			968
Other		489			505			504			484			492
Unearned income		(872	)		(902	)		(931	)		(923	)		(980	)

Total, net of unearned income	$	44,674		$	43,495		$	42,480		$	40,835		$	39,451

Supplemental Loan Information
Loans excluding conduit	$	42,479		$	41,243		$	40,676		$	39,094		$	37,519
Market Street Funding Corporation conduit		2,195			2,252			1,804			1,741			1,932

Total loans	$	44,674		$	43,495		$	42,480		$	40,835		$	39,451


	March 31 2005		March 31 2004
Commercial Lending Exposure (a)(b)
Investment grade or equivalent
$50 million or greater	16	%	16	%
$25 million to < $50 million	16	%	15	%
< $25 million	15	%	16	%
Non-investment grade
$50 million or greater	2	%	2	%
$25 million to < $50 million	11	%	11	%
<$25 million	40	%	40	%

Total	100	%	100	%

(a)	These statistics exclude the loans of Market Street Funding Corporation. The facilities extended by Market Street represent pools of granular obligations, structured to avoid excessive concentration of credit risk such that they attract an investment grade rating.

(b)	Exposure represents the sum of all loans, leases, commitments and letters of credit.

Consumer Loan Statistic (c)


Net charge-offs to average loans		.14	%		.16	%		.19	%		.20	%		.21	%

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and

Net Unfunded Commitments (Unaudited)

Change in Allowance for Loan and Lease Losses


*Three months ended - in millions*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Beginning balance	$	607		$	581		$	593		$	604		$	632
Charge-offs
Commercial		(12	)		(15	)		(13	)		(26	)		(59	)
Commercial real estate														(2	)
Consumer		(10	)		(11	)		(10	)		(11	)		(11	)
Residential mortgage								(2	)					(1	)
Lease financing					(1	)		(1	)		(1	)		(2	)

Total charge-offs (a)		(22	)		(27	)		(26	)		(38	)		(75	)
Recoveries
Commercial		6			9			9			5			8
Commercial real estate											1
Consumer		4			3			3			3			3
Residential mortgage														1
Lease financing					1			1			3			1

Total recoveries		10			13			13			12			13
Net charge-offs
Commercial		(6	)		(6	)		(4	)		(21	)		(51	)
Commercial real estate											1			(2	)
Consumer		(6	)		(8	)		(7	)		(8	)		(8	)
Residential mortgage								(2	)
Lease financing											2			(1	)

Total net charge-offs		(12	)		(14	)		(13	)		(26	)		(62	)
Provision for credit losses		8			19			13			8			12

Acquired allowance (United National)														22
Net change in allowance for unfunded loan commitments and letters of credit		(3	)		21			(12	)		7

Ending balance	$	600		$	607		$	581		$	593		$	604

(a)	See Note (a) on page 16.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


*Three months ended - in millions*	March 31 2005		December 31 2004			September 30 2004		June 30 2004			March 31 2004
Beginning balance	$	75	$	96		$	84	$	91		$	91
Net change in allowance for unfunded loan commitments and letters of credit		3		(21	)		12		(7	)

Ending balance	$	78	$	75		$	96	$	84		$	91

Net Unfunded Commitments
*In millions*	March 31 2005		December 31 2004			September 30 2004		June 30 2004			March 31 2004
Net unfunded commitments	$	30,326	$	30,306		$	28,867	$	28,510		$	27,266


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	March 31 2005			December 31 2004			September 30 2004			June 30 2004			March 31 2004
Nonaccrual loans
Commercial (a)	$	83		$	89		$	96		$	119		$	132
Commercial real estate		11			14			10			3			3
Consumer		13			11			12			11			10
Residential mortgage		19			21			23			23			26
Lease financing		5			5			7			13			12

Total nonaccrual loans		131			140			148			169			183
Troubled debt restructured loan					3

Total nonperforming loans		131			143			148			169			183
Nonperforming loans held for sale (b)		2			3			2			4			4
Foreclosed and other assets
Lease financing		13			14			16			17			17
Residential mortgage		11			10			11			11			13
Other		5			5			7			8			12

Total foreclosed and other assets		29			29			34			36			42

Total nonperforming assets (c)	$	162		$	175		$	184		$	209		$	229

Nonperforming loans to total loans		.29	%		.33	%		.35	%		.41	%		.46	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.35			.39			.42			.49			.56
Nonperforming assets to total assets		.19			.22			.24			.29			.31


(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.

(b) Includes troubled debt restructured loans held for sale.				$	2		$	2		$	2		$	3

(c) Excludes equity management assets carried at estimated fair value (March 31, 2005, December 31, 2004, September 30, 2004, June 30, 2004 and March 31, 2004 amounts include troubled debt restructured assets of $10 million, $11 million, $10 million, $10 million and $11 million, respectively).	$	33		$	32		$	29		$	32		$	29

Change in Nonperforming Assets


*In millions*	Three months ended
January 1, 2005	$	175
Transferred from accrual		32
Returned to performing		(5	)
Principal reductions and payoffs		(25	)
Asset sales		(4	)
Charge-offs and valuation adjustments		(11	)

March 31, 2005	$	162


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business


*Period ended - in millions*	March 31 2005		December 31 2004		September 30 2004		June 30 2004		March 31 2004
Regional Community Banking
Nonperforming loans	$	74	$	80	$	74	$	70	$	64
Foreclosed and other assets		10		11		11		11		11

Total	$	84	$	91	$	85	$	81	$	75

Wholesale Banking
Nonperforming loans	$	46	$	51	$	60	$	85	$	102
Nonperforming loans held for sale		2		3		2		4		4
Foreclosed and other assets		17		17		20		21		25

Total	$	65	$	71	$	82	$	110	$	131

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

Total	$	9	$	9	$	10	$	10	$	11

Other (a)
Nonperforming loans	$	2	$	3	$	4	$	5	$	6
Foreclosed and other assets		2		1		3		3		6

Total	$	4	$	4	$	7	$	8	$	12

Consolidated Totals
Nonperforming loans (b)	$	131	$	143	$	148	$	169	$	183
Nonperforming loans held for sale		2		3		2		4		4
Foreclosed and other assets		29		29		34		36		42

Total	$	162	$	175	$	184	$	209	$	229

Largest Nonperforming Assets at March 31, 2005 - in millions (c)


Ranking	Outstandings		Industry
1	$	13	Air Transportation
2		10	Fabricated Metal Manufacturing
3		8	Wholesalers Nondurable Other
4		7	Individuals
5		7	Real Estate Lessors
6		5	Plastic and Mineral Manufacturing
7		3	Machinery Manufacturing
8		3	Other Transportation
9		3	Paper and Wood Product Manufacturing
10		2	Machinery Manufacturing

Total	$	61


As a percent of nonperforming assets
	38	%

(a)	Represents residential mortgages related to PNC’s asset and liability management function.

(b)	See Note (a) on page 16.

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


		Page 18

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 (or annual) 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.

Derivatives - Financial contracts whose value is derived from publicly traded securities, interest rates, currency exchange rates or market indices. Derivatives cover a wide assortment of financial contracts, including forward contracts, futures, options and swaps.

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; 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.


		Page 19

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 assets and liabilities 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 - - 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 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 had previously 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 total period-end 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. To provide more meaningful 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.


		Page 20

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.

Yield curve (shape of the yield curve, flat yield curve) - A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds.


		Page 21

Business Segment Products and Services

Regional Community Banking provides deposit, lending, and cash management services, and investment services through PNC Investments, LLC, 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 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 nondiscretionary 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 institutional and individual investors worldwide through a variety of equity, fixed income, liquidity 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, investment system outsourcing and financial advisory services to a growing number of 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.