 The PNC Financial Services Group, Inc. Merrill Lynch Banking & Financial Services Investor Conference New York, NY November 17, 2005 The PNC Financial Services Group, Inc. Merrill Lynch Banking & Financial Services Investor Conference New York, NY November 17, 2005 EXHIBIT 99.1 |
 Cautionary Statement Regarding Forward-Looking Information Cautionary Statement Regarding Forward-Looking Information This presentation contains forward-looking statements regarding our outlook or
expectations relating to PNC’s future business, operations, financial condition, financial performance and asset quality. Forward- looking statements are necessarily
subject to numerous assumptions, risks and uncertainties. The forward- looking statements in this presentation are qualified by the factors
affecting forward- looking statements identified in the more detailed
Cautionary Statement included in the Appendix, as well as those factors
previously disclosed in our 2004 annual report on Form 10-K, our third
quarter 2005 report on Form 10- Q, and other SEC reports (accessible on
the SEC’s website at www.sec.gov and on or through our corporate
website at www.pnc.com). Future events or circumstances may change our outlook or expectations and may also
affect the nature of the assumptions, risks and uncertainties to which our forward-looking statements are subject. The forward- looking statements in this presentation
speak only as of the date of this presentation. We do not assume any
duty and do not undertake to update those statements. This presentation may also include a discussion of non-GAAP financial measures, which, to the extent not so qualified therein or in the Appendix, is qualified by GAAP
reconciliation information available on our corporate website at www.pnc.com under “For Investors.” |
 Keys to Success in the Current Environment Keys to Success in the Current Environment A Solid Platform Diversified business mix Strong risk management Executable Growth Strategies Invest in and grow fee-based businesses Continue to grow low-cost deposit franchise Generate value-added loans Increase asset yields Improve operating leverage |
 Building a Sustainable Model Building a Sustainable Model |
 International fund processing: PFPC – with offices in U.S., Ireland & Luxembourg International investment management: BlackRock – with offices in U.S., Scotland, Hong Kong & Tokyo Regional, National and International Businesses PNC – A Diversified Financial Services Company PNC – A Diversified Financial Services Company IN OH PA KY NJ DE Business Leadership Consumer Banking - A leading community bank in PNC’s major markets - 6 largest bank ATM network - One of the nation’s largest bank wealth management firms Institutional Banking - Top 10 Treasury Management business - Top 5 asset-based lender BlackRock - One of the nation’s largest publicly traded asset managers PFPC - Among the largest providers of mutual fund transfer agency and accounting and administration services in U.S. PNC Bank Branches PNC Employees / Offices VA DC MD th |
 Built a Strong Credit Risk Profile Built a Strong Credit Risk Profile Nonperforming assets to loans, loans held for sale and foreclosed assets 0.29% 0.55% 0.42% Nonperforming loans to loans 0.25% 0.49% 0.36% Net charge-offs to average loans (YTD) (0.03)% 0.20% 0.30% Excluding $53 million loan recovery in 2Q05 0.12% Allowance for loan and lease losses to nonperforming loans 499% 228% 332% Allowance for loan and lease losses to loans 1.26% 1.15% 1.23% Source: SNL DataSource; PNC as reported Moody’s and peer group represent average of banks identified in Appendix.
Peer group excludes PNC. PNC A2 Moody’s A1 September 30, 2005 Peer Group PNC Compares Favorably to Banks Rated One Level Higher and Peer Group |
 2005 Highlights 2005 Highlights Financial Highlights Strong client activity – business segment earnings* grew 19% year over year for nine months Riggs successfully integrated Strong revenue growth Loans and deposits continued to grow Recent acquisitions represent new opportunities for growth Efficiency improved in 3rd quarter and implementation of One PNC initiatives on track Asset quality remained very strong Net income $970 million EPS (diluted) $3.35 ROCE 16.5% Noninterest income to total revenue 65% Loans to deposits* 84% Nine Months Ended September 30, 2005 Loans to deposits as of September 30, 2005 * Total business segment earnings is reconciled to total GAAP consolidated earnings in Appendix * |
 Keys to Success in the Current Environment Keys to Success in the Current Environment A Solid Platform Diversified business mix Strong risk management Executable Growth Strategies Invest in and grow fee-based businesses Continue to grow low-cost deposit franchise Generate value-added loans Increase asset yields Improve operating leverage |
 Fee-Based Businesses Differentiate PNC Fee-Based Businesses Differentiate PNC Noninterest Income to Total Revenue 0% 10% 20% 30% 40% 50% 60% 70% 80% BK PNC WB USB FITB WFC KEY STI BBT NCC Information for the quarter ended 9/30/05 PNC amounts calculated in the Appendix Source: SNL DataSource Banking & Other BlackRock PFPC 10% CAGR 10% CAGR Strong Noninterest Income Growth $450 $550 $650 $750 $850 $950 $1,050 $1,150 $ millions Consolidated Noninterest Income 2002 2003 2004 2005 |
 Reflects adjusted earnings for 2004, nine months 2004 and nine months 2005 as presented in BlackRock’s publicly available filings and are reconciled to GAAP in the Appendix BlackRock – A Growth Engine BlackRock – A Growth Engine Assets Under Management Earnings $0 $50 $100 $150 $200 2002 2003 2004 2004 2005 Year Ended December 31 $0 $100 $200 $300 $400 $500 2002 2003 2004 9/30/05 12/31 Nine Months Ended September 30 $273 $342 $428 $309 $189 $133 $155 $178 $130 * * $143 $93 $161 Adjusted Earnings* GAAP Earnings $ millions $ billions |
 Improve efficiency Expand offshore Invest in and grow alternative investment products PFPC – Strong Growth PFPC – Strong Growth Servicing Statistics Strategies to Drive Growth Assets serviced ($ billions) Accounting / administration $793 +19% Domestic $726 +19% Offshore $67 +16% Shareholder accounts (in millions) Transfer agency 19 -10% Subaccounting 40 +18% YTD Earnings ($ millions) $75 +50% % Change vs 2004 2005 September 30 |
 $0 $175 $350 $525 $700 $875 $1,050 $1,225 $1,400 2004 2005 Nine Months Ended September 30 Banking – Growing Fee Income Banking – Growing Fee Income $908 $373 $426 $937 +3% +14% Consumer Banking Institutional Banking * • Institutional Banking reported noninterest income for the nine months ended 9/30/04 and 9/30/05 are $423 million and $432 million, respectively; chart excludes net gains on institutional loans held for sale of $50 million and $6 million, respectively. Consumer and Institutional Banking Geographic expansion Diversify product set Increase product penetration Leverage technology Strong Noninterest Income Growth Strategies to Drive Growth |
 Keys to Success in the Current Environment Keys to Success in the Current Environment A Solid Platform Diversified business mix Strong risk management Executable Growth Strategies Invest in and grow fee-based businesses Continue to grow low-cost deposit franchise Generate value-added loans Increase asset yields Improve operating leverage |
 0.0 0.5 1.0 1.5 2.0 2002 2003 2004 9/30/05 Increasing and Deepening Checking Relationships Increasing and Deepening Checking Relationships …Provides Opportunities for Deepening Relationships Home equity loans
+17% Consumer on-line banking users +19% Consumer on-line bill-pay users +72% Growth* * Growth is for nine months ended 9/30/05 vs. 9/30/04 Consumer Banking Checking Customer Base millions 12/31 Small Business Consumer |
 $5 $7 $9 $11 $13 $15 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% $5 $7 $9 $11 $13 $15 $17 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q Growing a Valuable Core Deposit Base Growing a Valuable Core Deposit Base Relationship Strategy Generating Deposit Growth $ billions Consumer Banking Average Certificates of Deposit Consumer Banking Average Demand Deposits $ billions Average Federal Funds Rate Average Certificates of Deposit 2003 2004 2005 2003 2004 2005 |
 12% 14% 16% 18% 20% 22% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 1Q 2Q 3Q 4Q 1Q 2Q 3Q Noninterest-Bearing Deposits Becoming More Valuable Noninterest-Bearing Deposits Becoming More Valuable PNC’s High Percentage of Noninterest-Bearing Funding Noninterest-Bearing Deposits to Average Earning Assets Rising Interest Rates Increase Value of PNC’s Noninterest-Bearing Deposits PNC Industry 2004 2005 2004 2005 Impact of Noninterest-Bearing Sources on PNC’s Net Interest Margin Industry source: SNL DataSource Industry reflects average of 468 publicly-traded banks as identified by SNL
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 Keys to Success in the Current Environment Keys to Success in the Current Environment A Solid Platform Diversified business mix Strong risk management Executable Growth Strategies Invest in and grow fee-based businesses Continue to grow low-cost deposit franchise Generate value-added loans Increase asset yields Improve operating leverage |
 $0 $5 $10 $15 $20 $25 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 * Includes lease financing and excludes Market Street Funding Corporation; see Appendix
for GAAP reconciliation PNC Average Institutional and Business Banking Loans
$ billions Commercial Real Estate and Real Estate Related Corporate Banking * CAGR Since 4Q03 Business Banking 9% 30% 10% 26% Asset Based Lending Improving Execution Driving Loan Growth Improving Execution Driving Loan Growth |
 Keys to Success in the Current Environment Keys to Success in the Current Environment A Solid Platform Diversified business mix Strong risk management Executable Growth Strategies Invest in and grow fee-based businesses Continue to grow low-cost deposit franchise Generate value-added loans Increase asset yields Improve operating leverage |
 An Opportunity to Increase Securities Yields An Opportunity to Increase Securities Yields Yield on Securities Portfolio BK 4.27 % 3.52 % +75bp PNC 4.29 3.67 +62bp STI 4.40 3.82 +58bp USB 4.73 4.28 +45bp WB 5.07 4.75 +32bp WFC 5.79 5.60 +19bp BBT 4.18 4.02 +16bp FITB 4.32 4.18 +14bp NCC 5.10 5.12 -2bp KEY 4.67 4.92 -25bp Source: SNL DataSource and company filings Information as of 9/30/05 3Q05 3Q04 Change Retained Portfolio Flexibility As of September 30, 2005 Effective duration of 2.5 years Weighted-average life of 3.9 years 12% is floating rate 24% matures or re-prices in next twelve months Increasing Yields on Securities Portfolio |
 $450 $470 $490 $510 $530 $550 $570 $590 $610 Net Interest Income Trend Improving Net Interest Income Trend Improving Consolidated Net Interest Income (Taxable Equivalent Basis) Net interest income on a taxable-equivalent basis is reconciled to GAAP net interest income in Appendix $ millions 2002 2003 2004 2005 |
 Keys to Success in the Current Environment Keys to Success in the Current Environment A Solid Platform Diversified business mix Strong risk management Executable Growth Strategies Invest in and grow fee-based businesses Continue to grow low-cost deposit franchise Generate value-added loans Increase asset yields Improve operating leverage |
 One PNC – Driving Improved Operating Leverage One PNC – Driving Improved Operating Leverage Eliminate 3,000 positions Implement 2,400 ideas Achieve $400 million of total value 1,800 positions eliminated 77% of ideas are complete or in process On track to capture $400 million of value by 2007 Expected Outcomes Update – As of 9/30/05 |
 Summary Summary Already accomplished a great deal in 2005 Positioned to generate positive operating leverage – Expect overall revenue growth trends to continue – One PNC initiative to drive efficiency improvements |
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 Appendix |
 Cautionary Statement Regarding Forward-Looking Information Cautionary Statement Regarding Forward-Looking Information We make statements in this presentation, and we may from time to time make other statements, regarding our outlook or expectations
for earnings, revenues, expenses and/or other matters regarding or affecting
PNC that are forward- looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions. Forward- looking statements are subject to numerous assumptions, risks and
uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. We do not assume any duty and do not undertake to update our forward- looking statements. Actual results or future
events could differ, possibly materially, from those that we anticipated in
our forward- looking statements, and future results could differ materially from our historical performance. In addition to factors that we have disclosed in our 2004 annual report on Form 10-K, our third quarter 2005 report on Form 10-Q, and in other reports that we file with the SEC (accessible on the SEC’s website at www.sec.gov and on or through PNC’s corporate website at www.pnc.com), PNC’s forward-looking statements are subject to, among others, the following risks and uncertainties, which could cause actual results or future events to differ materially from those that we anticipated in our forward-looking statements or from our historical performance: • changes in political, economic or industry conditions, the interest rate environment,
or the financial and capital markets (including as a result of actions of
the Federal Reserve Board affecting interest rates, the money supply, or
otherwise reflecting changes in monetary policy), which could affect: (a) credit quality and the extent of our credit losses; (b) the extent of funding of
our unfunded loan commitments and letters of credit; (c) our allowances for loan and lease losses and unfunded loan commitments and letters of credit; (d)
demand for our credit or fee-based products and services; (e) our net interest income; (f) the value of assets under management and assets serviced, of
private equity investments, of other debt and equity investments, of
loans held for sale, or of other on-balance sheet or off-balance sheet assets; or (g) the availability and terms of funding necessary to meet our liquidity needs; • the impact on us of legal and regulatory developments, including the following: (a) the resolution of legal proceedings or regulatory and other
governmental inquiries; (b) increased litigation risk from recent
regulatory and other governmental developments; (c) the results of the regulatory examination process, our failure to satisfy the requirements of agreements with
governmental agencies, and regulators’ future use of supervisory and
enforcement tools; (d) legislative and regulatory reforms, including
changes to tax and pension laws; and (e) changes in accounting policies and principles, with the impact of any such developments possibly affecting our ability to
operate our businesses or our financial condition or results of operations
or our reputation, which in turn could have an impact on such matters as
business generation and retention, our ability to attract and retain management, liquidity and funding; • the impact on us of changes in the nature and extent of our competition; • the introduction, withdrawal, success and timing of our business initiatives and strategies; |
 Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued)
• customer acceptance of our products and services, and our customers’ borrowing, repayment, investment and deposit practices; • the impact on us of changes in the extent of customer or counterparty delinquencies,
bankruptcies or defaults, which could affect, among other things, credit
and asset quality risk and our provision for credit losses; •
the ability to identify and effectively manage risks inherent in our businesses; • how we choose to redeploy available capital, including the extent and timing of any
share repurchases and acquisitions or other investments in our businesses;
• the impact, extent and timing of technological changes, the adequacy of intellectual
property protection, and costs associated with obtaining rights in intellectual property claimed by others; • the timing and pricing of any sales of loans or other financial assets held for sale;
• our ability to obtain desirable levels of insurance and to successfully submit claims
under applicable insurance policies; • the relative and absolute investment performance of assets under management; and • the extent of terrorist activities and international hostilities, increases or
continuations of which may adversely affect the economy and financial and capital markets generally or us specifically. Our future results are likely to be affected significantly by the results of the
implementation of our One PNC initiative, as discussed in this presentation. Generally, the amounts of our anticipated cost savings and revenue enhancements are
based to some extent on estimates and assumptions regarding future business performance and expenses, and these estimates and assumptions may prove to be inaccurate in some respects. Some or all of the above factors may cause the anticipated expense savings and revenue enhancements from that initiative
not to be achieved in their entirety, not to be accomplished within the
expected time frame, or to result in implementation charges beyond those currently contemplated or some other unanticipated adverse impact. Furthermore, the implementation of cost savings ideas may have unintended impacts on
our ability to attract and retain business and customers, while revenue
enhancement ideas may not be successful in the marketplace or may result in unintended costs. Assumed attrition required to achieve workforce reductions may not come in the right places or at the right times to meet planned goals. In addition, we grow our business from time to time by acquiring other financial services companies. Acquisitions in general present us with a number of risks and uncertainties related both to the acquisition transactions themselves and to the integration of the acquired businesses into PNC after closing. In particular, acquisitions may be substantially more expensive to complete (including the integration
of the acquired company) and the anticipated benefits, including
anticipated cost savings and strategic gains, may be significantly harder or take longer to achieve than expected. As a regulated financial institution, our |
 Cautionary Statement Regarding Forward-Looking Information (continued)
Cautionary Statement Regarding Forward-Looking Information (continued)
pursuit of attractive acquisition opportunities could be negatively impacted due to regulatory delays or other regulatory issues. Regulatory and/or legal issues of an acquired business may cause reputational harm to PNC following the acquisition and integration of the acquired business into ours and may result in additional future costs and expenses arising as a result of those issues. Recent
acquisitions, including our acquisition of Riggs National Corporation, continue to present the integration and other post-closing risks and uncertainties described above. You can find additional information on the foregoing risks and uncertainties and
additional factors that could affect the results anticipated in our forward-looking statements or from our historical performance in the reports that we file with the
SEC. You can access our SEC reports on the SEC’s website at www.sec.gov and on or through our corporate website at www.pnc.com. Also, risks and uncertainties that could affect the results anticipated in forward-looking statements or from historical performance relating to our majority-owned subsidiary BlackRock, Inc. are discussed in more detail in BlackRock’s filings with the SEC, accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com. Any annualized, proforma, estimated, third party or consensus numbers in this
presentation are used for illustrative or comparative purposes only and may not reflect actual results. Any consensus earnings estimates are calculated based on
the earnings projections made by analysts who cover that company. The analysts’ opinions, estimates or forecasts (and therefore the consensus earnings estimates) are theirs alone, are not those of PNC or its management, and may not reflect PNC’s actual or anticipated results. |
 Non-GAAP to GAAP Reconcilement Non-GAAP to GAAP Reconcilement Business segments Consumer Banking $487 $443 23% Institutional Banking 372 335 29% BlackRock 161 93 25% PFPC 75 50 34% Total business segments 1,095 921 19% 26% Minority interest in (income) of BlackRock (49) (27) Other (76) (4) Total consolidated $970 $890 9% 16% 2005 2004 $ millions For the nine months ended September 30 Change % Earnings Return on Avg Capital * 2005 Appendix Business Earnings and Return on Capital * Percentages for BlackRock and PFPC reflect return on average equity.
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 Non-GAAP to GAAP Reconcilement Non-GAAP to GAAP Reconcilement BlackRock $301 18.0% PFPC 217 13.0 Banking businesses 488 29.2 Other 107 6.4 Total consolidated $1,113 $1,672 66.6% Noninterest Income $ millions Consolidated Total Revenue Noninterest Income to Consolidated Total Revenue* Quarter Ended 9/30/05 35.6% Appendix Sum of net interest income and noninterest income * Noninterest Income to Total Revenue* |
 Non-GAAP to GAAP Reconcilement Non-GAAP to GAAP Reconcilement $ millions Appendix BlackRock Adjusted Earnings |
 Non-GAAP to GAAP Reconcilement Non-GAAP to GAAP Reconcilement Business Banking $2,968 $3,179 $3,629 $3,825 $3,918 $4,052 $4,277 $4,443 26% Institutional Banking Asset based lending 3,658 3,608 3,788 3,838 3,976 4,050 4,303 4,227 9% Commercial real estate and real estate related 2,997 3,250 3,399 3,606 3,567 3,589 4,229 4,719 30% Corporate banking 10,233 9,875 9,669 9,776 10,139 10,417 10,940 11,436 7% Market Street Funding 2,385 2,107 1,812 1,677 1,952 2,111 2,039 2,099 (7%) Corporate banking excluding Market Street Funding 7,848 7,768 7,857 8,099 8,187 8,306 8,901 9,337 10% Total Institutional and Business Banking excluding Market Street Funding 17,471 17,805 18,673 19,368 19,648 19,997 21,710 22,726 16% $ millions 4Q03 2Q04 1Q04 3Q04 Appendix PNC Average Institutional and Business Banking Loans 4Q04 2Q05 1Q05 3Q05 CAGR Since 4Q03 |
 Non-GAAP to GAAP Reconcilement Non-GAAP to GAAP Reconcilement Net interest income, GAAP basis $590 $555 $528 $524 Taxable-equivalent adjustment 3 3 4 3 Net interest income, taxable-
equivalent basis $593 $558 $532 $527 $ millions 1Q02 3Q02 2Q02 4Q02 Net interest income, GAAP basis $503 $521 $487 $485 Taxable-equivalent adjustment 3 2 2 3 Net interest income, taxable-equivalent basis $506 $523 $489 $488 1Q03 3Q03 2Q03 4Q03 Net interest income, GAAP basis $494 $481 $491 $503 Taxable-equivalent adjustment 3 4 7 6 Net interest income, taxable-equivalent basis $497 $485 $498 $509 1Q04 3Q04 2Q04 4Q04 Appendix Consolidated Net Interest Income Net interest income, GAAP basis $506 $534 $559 Taxable-equivalent adjustment 6 7 7 Net interest income, taxable-equivalent basis $512 $541 $566 1Q05 3Q05 2Q05 |
 Peer Groups Peer Groups BB&T Corporation BBT The Bank of New York Company, Inc. BK Fifth Third Bancorp FITB KeyCorp KEY National City Corporation NCC The PNC Financial Services Group, Inc. PNC SunTrust Banks, Inc. STI U.S. Bancorp USB Wachovia Corporation WB Wells Fargo & Company WFC Appendix Marshall & Ilsley Corporation MI National City Corporation NCC Regions Financial Corporation RF Ticker Ticker Super-Regional Banks Moody’s A1 Moody’s peer group includes banks with a senior unsecured issuer rating of A1 and excludes trust & processing banks |