Financial Supplement (unaudited) for Fourth Quarter and Full Year 2005

EXHIBIT 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2005

UNAUDITED

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2005

UNAUDITED


		Page
Consolidated Income Statement		1 - 2
Consolidated Balance Sheet		3
Capital Ratios and Asset Quality Ratios		3
Results of Businesses
Summary of Business Results and Headcount		4 - 5
Retail Banking		6 - 9
Corporate & Institutional Banking		10 - 11
BlackRock		12 - 13
PFPC		14 - 15
Details of Net Interest Income, Net Interest Margin, and Trading Revenue		16
Efficiency Ratios		17
Average Consolidated Balance Sheet and Supplemental Average Balance Sheet Information		18-21
Details of Loans and Lending Statistics		22
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and Net Unfunded Commitments		23
Details of Nonperforming Assets		24-25
Glossary of Terms		26-28
Business Segment Products and Services		29

The information contained in this Financial Supplement is preliminary, unaudited and based on data available at January 19, 2006. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation.

See our Current Reports on Form 8-K dated September 30, 2005 and December 28, 2005 regarding changes to the presentation of results for our business segments based on our decision to reorganize our banking businesses during third quarter 2005 into two units and to align our reporting accordingly. Since that date, we have renamed our two banking business segments. Retail Banking was formerly reported as Consumer Banking, while Corporate & Institutional Banking was formerly reported as Institutional Banking. The organization of these businesses did not change in the fourth quarter of 2005.

As previously reported in our third quarter 2005 Report on Form 10-Q, in early October 2005, Market Street Funding Corporation (“Market Street”), a multi-seller asset-backed commercial paper conduit owned by an independent third party, was restructured. As a result, Market Street was deconsolidated from our Consolidated Balance Sheet effective October 17, 2005. This deconsolidation is reflected in the information contained in this Financial Supplement. We had previously consolidated Market Street under the provisions of FIN 46R effective July 1, 2003.

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 period-end headcount 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.		Page 1

Consolidated Income Statement (Unaudited)


*For the year ended - in millions, except per share data*	December 31 2005			December 31 2004			December 31 2003
Interest Income
Loans	$	2,669		$	2,043		$	1,962
Securities available for sale and held to maturity		822			568			581
Other		243			141			169

Total interest income		3,734			2,752			2,712

Interest Expense
Deposits		981			484			457
Borrowed funds		599			299			259

Total interest expense		1,580			783			716

Net interest income		2,154			1,969			1,996
Provision for credit losses		21			52			177

Net interest income less provision for credit losses		2,133			1,917			1,819

Noninterest Income
Asset management		1,443			994			861
Fund servicing		870			817			762
Service charges on deposits		273			252			239
Brokerage		225			219			184
Consumer services		287			264			251
Corporate services		511			493			506
Equity management gains (losses)		96			67			(25	)
Net securities gains (losses)		(41	)		55			116
Trading		157			113			127
Other		341			289			236

Total noninterest income		4,162			3,563			3,257

Noninterest Expense
Compensation		2,061			1,755			1,480
Employee benefits		332			309			324
Net occupancy		313			267			282
Equipment		296			290			276
Marketing		106			87			64
Other		1,209			1,027			1,050

Total noninterest expense		4,317			3,735			3,476

Income before minority and noncontrolling interests and income taxes		1,978			1,745			1,600
Minority and noncontrolling interests in income of consolidated entities		49			10			32
Income taxes		604			538			539

Income before cumulative effect of accounting change		1,325			1,197			1,029

Cumulative effect of accounting change (less applicable income tax benefit of $14)								(28	)

Net income	$	1,325		$	1,197		$	1,001

Earnings Per Common Share
Before cumulative effect of accounting change
Basic	$	4.63		$	4.25		$	3.68
Diluted	$	4.55		$	4.21		$	3.65
From net income
Basic	$	4.63		$	4.25		$	3.58
Diluted	$	4.55		$	4.21		$	3.55

Average Common Shares Outstanding
Basic		286			281			280
Diluted		290			284			281

Noninterest income to total revenue		66	%		64	%		62	%

Effective tax rate (a)		30.5	%		30.8	%		33.7	%

(a)

The decrease in the effective tax rate for 2005 compared with 2004 was principally caused by 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 our first quarter 2005 Quarterly Report on Form 10-Q for additional information.

The decrease in the effective tax rate in 2004 compared with 2003 reflected reduced state and local tax expense due to tax benefits of $18 million recorded in 2004 in connection with New York state and city audits (principally associated with BlackRock), and a $14 million reduction in income tax expense following our determination in the third quarter of 2004 that we no longer required an income tax reserve related to bank-owned life insurance.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Consolidated Income Statement (Unaudited)


*For the three months ended - in millions, except per share data*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Interest Income
Loans	$	727		$	718		$	646		$	578		$	547
Securities available for sale and held to maturity		233			219			198			172			154
Other		74			58			57			54			42

Total interest income		1,034			995			901			804			743

Interest Expense
Deposits		305			270			224			182			152
Borrowed funds		174			166			143			116			88

Total interest expense		479			436			367			298			240

Net interest income		555			559			534			506			503
Provision for (recoveries of) credit losses		24			16			(27	)		8			19

Net interest income less provision for credit losses		531			543			561			498			484

Noninterest Income
Asset management		431			364			334			314			256
Fund servicing		213			218			219			220			209
Service charges on deposits		74			73			67			59			65
Brokerage		57			56			57			55			53
Consumer services		72			75			74			66			68
Corporate services		146			132			122			111			124
Equity management gains		16			36			12			32			9
Net securities gains (losses)		(4	)		(2	)		(26	)		(9	)		10
Trading		49			47			11			50			44
Other		97			114			55			75			66

Total noninterest income		1,151			1,113			925			973			904

Noninterest Expense
Compensation		556			545			481			479			452
Employee benefits		77			86			86			83			82
Net occupancy		82			86			72			73			64
Equipment		75			73			74			74			74
Marketing		31			30			25			20			24
Other		305			336			298			270			253

Total noninterest expense		1,126			1,156			1,036			999			949

Income before minority and noncontrolling interests and income taxes		556			500			450			472			439
Minority and noncontrolling interests in income of consolidated entities		20			14			9			6			5
Income taxes		181			152			159			112			127

Net income	$	355		$	334		$	282		$	354		$	307

Earnings Per Common Share
Basic	$	1.22		$	1.16		$	.99		$	1.26		$	1.09
Diluted	$	1.20		$	1.14		$	.98		$	1.24		$	1.08

Average Common Shares Outstanding
Basic		290			289			285			281			281
Diluted		294			292			288			284			283

Noninterest income to total revenue		67	%		67	%		63	%		66	%		64	%

Effective tax rate (a)		32.6	%		30.4	%		35.3	%		23.7	%		28.9	%

(a)	The fourth quarter 2005 effective tax rate reflects tax benefits from contributing BlackRock stock to the PNC Foundation and increasing the amount of dividends repatriated by PFPC from its foreign operations.

The decrease in the third quarter 2005 effective tax rate was principally caused by a decrease in the tax rate at PFPC resulting from changes in the way income is apportioned for state tax purposes; the effect of contributing BlackRock stock to the PNC Foundation; and adjustments related to the completion of PNC’s 2004 federal income tax return.

The second quarter 2005 effective tax rate reflects a $6 million increase in deferred taxes related to the Riggs acquisition.

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 our first quarter 2005 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 and $10 million in other tax benefits resulting from resolving refund claims and other miscellaneous items.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Assets
Cash and due from banks	$	3,518		$	3,474		$	3,442		$	2,908		$	3,230
Federal funds sold and resale agreements		350			907			89			1,252			1,635
Other short-term investments, including trading securities		2,543			2,553			2,203			2,354			1,848
Loans held for sale		2,449			2,377			2,275			2,067			1,670
Securities available for sale and held to maturity		20,710			20,658			20,437			18,449			16,761
Loans, net of unearned income of $835, $856, $847, $872 and $902		49,101			50,510			49,317			44,674			43,495
Allowance for loan and lease losses		(596	)		(634	)		(628	)		(600	)		(607	)

Net loans		48,505			49,876			48,689			44,074			42,888
Goodwill		3,619			3,470			3,418			2,976			3,001
Other intangible assets		847			755			752			613			354
Other		9,428			9,171			9,489			8,666			8,336

Total assets	$	91,969		$	93,241		$	90,794		$	83,359		$	79,723

Liabilities
Deposits
Noninterest-bearing	$	14,988		$	14,099		$	13,751		$	12,808		$	12,915
Interest-bearing		45,287			46,115			44,922			42,361			40,354

Total deposits		60,275			60,214			58,673			55,169			53,269
Borrowed funds
Federal funds purchased		4,128			1,477			2,701			995			219
Repurchase agreements		1,691			2,054			2,042			2,077			1,376
Bank notes and senior debt		3,875			3,475			2,920			3,662			2,383
Subordinated debt		4,469			4,506			4,105			3,988			4,050
Commercial paper		10			3,447			3,998			2,381			2,251
Other borrowed funds		2,724			3,415			2,440			1,411			1,685

Total borrowed funds		16,897			18,374			18,206			14,514			11,964
Allowance for unfunded loan commitments and letters of credit		100			79			84			78			75
Accrued expenses		2,770			2,637			2,358			2,288			2,406
Other		2,759			3,025			2,723			3,199			4,032

Total liabilities		82,801			84,329			82,044			75,248			71,746

Minority and noncontrolling interests in consolidated entities		605			595			507			532			504

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		1,358			1,358			1,353			1,275			1,265
Retained earnings		9,023			8,814			8,626			8,485			8,273
Deferred compensation expense		(59	)		(64	)		(70	)		(42	)		(51	)
Accumulated other comprehensive loss		(267	)		(200	)		(41	)		(175	)		(54	)
Common stock held in treasury at cost: 60, 62, 62, 70 and 70 shares		(3,256	)		(3,355	)		(3,389	)		(3,728	)		(3,724	)

Total shareholders’ equity		8,563			8,317			8,243			7,579			7,473

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	91,969		$	93,241		$	90,794		$	83,359		$	79,723

CAPITAL RATIOS
Tier 1 Risk-based (b)		8.4	%		8.4	%		8.3	%		8.7	%		9.0	%
Total Risk-based (b)		12.2			12.5			11.9			12.6			13.0
Leverage (b)		7.2			7.1			7.2			7.3			7.6
Tangible common equity		5.0			4.9			5.0			5.3			5.7
Common shareholders’ equity to assets		9.30			8.91			9.07			9.08			9.36

ASSET QUALITY RATIOS
Nonperforming assets to loans, loans held for sale and foreclosed assets		.42	%		.29	%		.32	%		.35	%		.39	%
Nonperforming loans to loans		.39			.25			.27			.29			.33
Net charge-offs to average loans (For the three months ended) (c)		.33			.12			(.32	)		.11			.13
Allowance for loan and lease losses to loans		1.21			1.26			1.27			1.34			1.40
Allowance for loan and lease losses to nonperforming loans		314			499			476			458			424

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

(b)	Estimated for December 31, 2005.

(c)	This ratio for the three months ended June 30, 2005 reflects the impact of a $53 million loan recovery during that quarter. Excluding the impact of this recovery, the ratio of net charge-offs to average loans for the second quarter of 2005 would have been .13%.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Summary of Business Results and Headcount (Unaudited)


*Year ended – dollars in millions* (a)	December 31 2005			December 31 2004
Earnings
Retail Banking	$	682		$	610
Corporate & Institutional Banking		480			443
BlackRock		234			143
PFPC		104			70

Total business segment earnings		1,500			1,266
Minority interest in income of BlackRock		(71	)		(42	)
Other		(104	)		(27	)

Total consolidated net income	$	1,325		$	1,197

Revenue (b)
Retail Banking	$	2,857		$	2,694
Corporate & Institutional Banking		1,341			1,271
BlackRock		1,191			725
PFPC		889			814

Total business segment revenue		6,278			5,504
Other		71			48

Total consolidated revenue	$	6,349		$	5,552

(a)

This summary also serves as a reconciliation of total earnings and revenue for all business segments to total consolidated earnings and revenue. See our Current Reports on Form 8-K dated September 30, 2005 and December 28, 2005 and our third quarter 2005 Form 10-Q regarding changes to the 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 and management structure change.

(b)

Business segment revenue is presented on a taxable-equivalent 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. This adjustment is not permitted under generally accepted accounting principles (GAAP) on the Consolidated Income Statement. 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):


	December 31 2005		December 31 2004
Total consolidated revenue, book (GAAP) basis	$	6,316	$	5,532
Taxable-equivalent adjustment		33		20

Total consolidated revenue, taxable-equivalent basis	$	6,349	$	5,552


	December 31 2005		December 31 2004
Period-end Headcount
Retail Banking		11,703		11,800
Corporate & Institutional Banking		3,050		2,974
BlackRock		2,151		1,142
PFPC		4,391		4,460
Other		2,298		2,366

Total full-time headcount		23,593		22,742
Total part-time headcount		1,755		1,476

Total headcount		25,348		24,218


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Summary of Business Results and Headcount (Unaudited)


*Three months ended – dollars in millions* (a)	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Earnings
Retail Banking	$	195		$	176		$	162		$	149		$	167
Corporate & Institutional Banking		108			118			144			110			108
BlackRock		73			61			53			47			50
PFPC		29			28			24			23			20

Total business segment earnings		405			383			383			329			345
Minority interest in income of BlackRock		(22	)		(19	)		(16	)		(14	)		(15	)
Other		(28	)		(30	)		(85	)		39			(23	)

Total consolidated net income	$	355		$	334		$	282		$	354		$	307

Revenue (b)
Retail Banking	$	752		$	737		$	708		$	660		$	688
Corporate & Institutional Banking		359			347			323			312			333
BlackRock		369			301			271			250			188
PFPC		217			221			221			230			209

Total business segment revenue		1,697			1,606			1,523			1,452			1,418
Other		22			73			(57	)		33			(5	)

Total consolidated revenue	$	1,719		$	1,679		$	1,466		$	1,485		$	1,413

(a)	See note (a) on page 4.

(b)	See note (b) on page 4. 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):


	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004
Total consolidated revenue, book (GAAP) basis	$	1,706	$	1,672	$	1,459	$	1,479	$	1,407
Taxable-equivalent adjustment		13		7		7		6		6

Total consolidated revenue, taxable-equivalent basis	$	1,719	$	1,679	$	1,466	$	1,485	$	1,413


	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004
Period-end Headcount
Retail Banking		11,703		11,963		12,241		11,779		11,800
Corporate & Institutional Banking		3,050		2,913		2,995		2,961		2,974
BlackRock		2,151		2,145		2,141		1,999		1,142
PFPC		4,391		4,457		4,599		4,549		4,460
Other		2,298		2,333		2,421		2,352		2,366

Total full-time headcount		23,593		23,811		24,397		23,640		22,742
Total part-time headcount		1,755		1,558		1,477		1,449		1,476

Total headcount		25,348		25,369		25,874		25,089		24,218


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Retail Banking (Unaudited)


*Year ended* *Taxable-equivalent basis* (a) *Dollars in millions*	December 31 2005			December 31 2004
INCOME STATEMENT
Net interest income	$	1,582		$	1,471
Noninterest income
Asset management		337			317
Service charges on deposits		265			243
Brokerage		217			215
Consumer services		254			238
Other		202			210

Total noninterest income		1,275			1,223

Total revenue		2,857			2,694
Provision for credit losses		52			61
Noninterest expense
Compensation and employee benefits		823			819
Net occupancy and equipment		316			306
Other		576			546

Total noninterest expense		1,715			1,671

Pretax earnings		1,090			962
Income taxes		408			352

Earnings	$	682		$	610

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	13,351		$	11,625
Indirect		936			843
Other		1,195			1,231

Total consumer		15,482			13,699
Commercial		5,094			4,468
Floor plan		975			970
Residential mortgage		1,405			888
Other		261			291

Total loans		23,217			20,316
Goodwill		1,331			1,155
Loans held for sale		1,553			1,183
Other assets		1,761			1,842

Total assets	$	27,862		$	24,496

Deposits
Noninterest-bearing demand	$	7,639		$	7,040
Interest-bearing demand		7,946			7,636
Money market		13,635			13,143

Total transaction deposits		29,220			27,819
Savings		2,574			2,640
Certificates of deposit		11,494			8,966

Total deposits		43,288			39,425
Other liabilities		392			521
Capital		2,852			2,687

Total funds	$	46,532		$	42,633

PERFORMANCE RATIOS
Return on average capital		24	%		23	%
Noninterest income to total revenue		45			45
Efficiency, GAAP basis		60			62
Efficiency, as adjusted (b)		58			60

(a)	See notes (a) and (b) on page 4.

(b)	See page 17 for a reconciliation of the efficiency ratio, as adjusted, to the efficiency ratio on a GAAP basis.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Retail Banking (Unaudited) (Continued)


*Year ended* *Dollars in millions except as noted*	December 31 2005			December 31 2004
OTHER INFORMATION (a)
Credit-related statistics:
Nonperforming assets (b)	$	90		$	100
Net charge-offs	$	53		$	64
Average loans	$	23,217		$	20,316
Net charge-off ratio		.23	%		.32	%

Home equity portfolio credit statistics:
% of first lien positions		46	%		50	%
Weighted average loan-to-value ratios		68	%		69	%
Weighted average FICO scores		728			717
Loans 90 days past due		.21	%		.21	%

Checking-related statistics:
Retail Bank checking relationships		1,934,000			1,762,000
Consumer DDA households using online banking		855,000			717,000
% of consumer DDA households using online banking		49	%		45	%
Consumer DDA households using online bill payment		205,000			113,000
% of consumer DDA households using online bill payment		12	%		7	%

Small business deposits:
Noninterest-bearing demand	$	4,353		$	4,006
Interest-bearing demand		1,560			1,605
Money market		2,849			2,711
Certificates of deposit		412			312

Brokerage statistics:
Margin loans	$	217		$	254
Financial consultants (c)		779			814
Full service brokerage offices		100			98
Brokerage account assets (in billions)	$	42		$	40

Other statistics:
Gains on sales of education loans (d)	$	19		$	30
Period-end full-time headcount		11,703			11,800
Period-end part-time headcount		1,413			1,154
ATMs		3,721			3,581
Branches (e)		839			776

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

Total	$	49		$	50

Asset Type
Equity	$	31		$	30
Fixed income		12			14
Liquidity/Other		6			6

Total	$	49		$	50

Nondiscretionary assets under administration
Personal	$	27		$	29
Institutional		57			64

Total	$	84		$	93

Asset Type
Equity	$	33		$	32
Fixed income		24			33
Liquidity/Other		27			28

Total	$	84		$	93

(a)	Presented as of period-end, except for average loans, net charge-offs, net charge-off ratio, gains on sales of education loans, and small business deposits.

(b)	During the first quarter of 2004, management changed its 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.

(c)	Financial consultants provide services in full service brokerage offices and PNC traditional branches.

(d)	Included in “Noninterest income-Other” on page 6.

(e)	Excludes certain satellite branches that provide limited products and service hours.

(f)	Excludes brokerage account assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Retail Banking (Unaudited)


*Three months ended* *Taxable-equivalent basis* (a) *Dollars in millions*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
INCOME STATEMENT
Net interest income	$	414		$	404		$	395		$	369		$	373
Noninterest income
Asset management		86			87			83			81			79
Service charges on deposits		72			71			65			57			62
Brokerage		54			54			56			53			52
Consumer services		65			66			64			59			61
Other		61			55			45			41			61

Total noninterest income		338			333			313			291			315

Total revenue		752			737			708			660			688
Provision for credit losses		9			14			15			14			13
Noninterest expense
Compensation and employee benefits		199			212			211			201			209
Net occupancy and equipment		80			81			79			76			74
Other		152			148			144			132			129

Total noninterest expense		431			441			434			409			412

Pretax earnings		312			282			259			237			263
Income taxes		117			106			97			88			96

Earnings	$	195		$	176		$	162		$	149		$	167

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	13,751		$	13,570		$	13,267		$	12,803		$	12,562
Indirect		980			952			917			892			881
Other		1,264			1,205			1,171			1,141			1,194

Total consumer		15,995			15,727			15,355			14,836			14,637
Commercial		5,282			5,235			5,033			4,821			4,631
Floor plan		936			903			1,050			1,013			961
Residential mortgage		1,716			1,789			1,326			776			817
Other		244			247			269			280			284

Total loans		24,173			23,901			23,033			21,726			21,330
Goodwill		1,467			1,458			1,248			1,144			1,153
Loans held for sale		1,802			1,602			1,455			1,345			1,221
Other assets		1,871			1,827			1,710			1,634			1,710

Total assets	$	29,313		$	28,788		$	27,446		$	25,849		$	25,414

Deposits
Noninterest-bearing demand	$	7,925		$	7,891		$	7,529		$	7,200		$	7,373
Interest-bearing demand		8,095			8,044			7,929			7,710			7,758
Money market		14,399			14,042			13,175			12,902			12,795

Total transaction deposits		30,419			29,977			28,633			27,812			27,926
Savings		2,309			2,516			2,712			2,766			2,762
Certificates of deposit		12,671			11,996			11,107			10,171			9,634

Total deposits		45,399			44,489			42,452			40,749			40,322
Other liabilities		392			370			396			408			463
Capital		2,965			2,919			2,774			2,748			2,717

Total funds	$	48,756		$	47,778		$	45,622		$	43,905		$	43,502

PERFORMANCE RATIOS
Return on average capital		26	%		24	%		23	%		22	%		24	%
Noninterest income to total revenue		45			45			44			44			46
Efficiency, GAAP basis		57			60			61			62			60
Efficiency, as adjusted (b)		55			58			59			60			58

(a)	See notes (a) and (b) on pages 4 and 5.

(b)	See page 17 for a reconciliation of the efficiency ratio, as adjusted, to the efficiency ratio on a GAAP basis.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

Retail Banking (Unaudited) (Continued)


*Three months* *ended Dollars in millions except as noted*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
OTHER INFORMATION (a)
Credit-related statistics:
Nonperforming assets	$	90		$	87		$	84		$	93		$	100
Net charge-offs	$	12		$	11		$	16		$	14		$	11
Average loans	$	24,173		$	23,901		$	23,033		$	21,726		$	21,330
Annualized net charge-off ratio		.20	%		.18	%		.28	%		.26	%		.21	%

Home equity portfolio credit statistics:
% of first lien positions		46	%		47	%		48	%		50	%		50	%
Weighted average loan-to-value ratios		68	%		70	%		70	%		69	%		69	%
Weighted average FICO scores		728			721			720			717			717
Loans 90 days past due		.21	%		.18	%		.18	%		.19	%		.21	%

Checking-related statistics:
Retail Bank checking relationships		1,934,000			1,921,000			1,882,000			1,782,000			1,762,000
Consumer DDA households using online banking		855,000			830,000			793,000			748,000			717,000
% of consumer DDA households using online banking		49	%		48	%		47	%		47	%		45	%
Consumer DDA households using online bill payment		205,000			188,000			167,000			132,000			113,000
% of consumer DDA households using online bill payment		12	%		11	%		10	%		8	%		7	%

Small business deposits:
Noninterest-bearing demand	$	4,555		$	4,499		$	4,267		$	4,086		$	4,203
Interest-bearing demand		1,656			1,547			1,478			1,556			1,764
Money market		2,941			3,045			2,774			2,630			2,836
Certificates of deposit		530			410			353			352			318

Brokerage statistics:
Margin loans	$	217		$	223		$	218		$	249		$	254
Financial consultants (b)		779			784			789			783			814
Full service brokerage offices		100			99			98			96			98
Brokerage account assets (in billions)	$	42		$	42		$	41		$	39		$	40

Other statistics:
Gains on sales of education loans (c)	$	4		$	11		$	3		$	1		$	13
Period-end full-time headcount		11,703			11,963			12,241			11,779			11,800
Period-end part-time headcount		1,413			1,264			1,146			1,105			1,154
ATMs		3,721			3,770			3,788			3,610			3,581
Branches (d)		839			830			827			772			776

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

Total	$	49		$	50		$	50		$	49		$	50

Asset Type
Equity	$	31		$	31		$	31		$	30		$	30
Fixed income		12			13			13			13			14
Liquidity/Other		6			6			6			6			6

Total	$	49		$	50		$	50		$	49		$	50

Nondiscretionary assets under administration
Personal	$	27		$	27		$	26		$	29		$	29
Institutional		57			58			59			63			64

Total	$	84		$	85		$	85		$	92		$	93

Asset Type
Equity	$	33		$	32		$	31		$	32		$	32
Fixed income		24			25			26			32			33
Liquidity/Other		27			28			28			28			28

Total	$	84		$	85		$	85		$	92		$	93

(a)	Presented as of period-end, except for average loans, net charge-offs, annualized net charge-off ratio, gains on sales of education loans, and small business deposits.

(b)	Financial consultants provide services in full service brokerage offices and PNC traditional branches.

(c)	Included in “Noninterest income-Other” on page 8.

(d)	Excludes certain satellite branches that provide limited products and service hours.

(e)	Excludes brokerage account assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

Corporate & Institutional Banking (Unaudited)


*Year ended* *Taxable-equivalent basis* (a) *Dollars in millions except as noted*	December 31 2005			December 31 2004
INCOME STATEMENT
Net interest income	$	732		$	698
Noninterest income
Net commercial mortgage banking
Net gains on loan sales		61			50
Servicing and other fees, net of amortization		62			47
Net gains on institutional loans held for sale		7			52
Other		479			424

Noninterest income		609			573

Total revenue		1,341			1,271
Provision for (recoveries of) credit losses		(30	)		5
Noninterest expense		706			671

Pretax earnings		665			595
Noncontrolling interests in income of consolidated entities		(42	)		(43	)
Income taxes		227			195

Earnings	$	480		$	443

AVERAGE BALANCE SHEET
Loans
Corporate banking (b)	$	10,656		$	9,865
Commercial real estate		2,289			1,834
Commercial - real estate related		2,055			1,631
Asset-based lending		4,203			3,803

Total loans (b)		19,203			17,133
Loans held for sale		752			470
Other assets		5,952			4,470

Total assets	$	25,907		$	22,073

Deposits	$	9,382		$	7,527
Commercial paper (c)		1,838			1,889
Other liabilities		3,946			3,433
Capital		1,724			1,672

Total funds	$	16,890		$	14,521

PERFORMANCE RATIOS
Return on average capital		28	%		26	%
Noninterest income to total revenue		45			45
Efficiency		53			53
COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	98		$	83
Acquisitions/additions		74			41
Repayments/transfers		(36	)		(26	)

End of period	$	136		$	98

OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	410		$	373
Capital Markets	$	175		$	140
Midland Loan Services	$	131		$	108
Equipment Leasing	$	69		$	84
Total loans (e)	$	18,817		$	17,959
Nonperforming assets (e)	$	124		$	71
Net charge-offs (recoveries)	$	(23	)	$	49
Period-end full-time headcount		3,050			2,974
Net carrying amount of commercial mortgage servicing rights (e)	$	344		$	242

(a)	See notes (a) and (b) on page 4.

(b)	Includes lease financing and Market Street. Market Street was deconsolidated from our Consolidated Balance Sheet effective October 17, 2005.

(c)	Includes Market Street. See Supplemental Average Balance Sheet Information on pages 18 through 21.

(d)	Represents consolidated PNC amounts.

(e)	Presented as of period-end.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Corporate & Institutional Banking (Unaudited)


*Three months ended* Taxable-equivalent basis (a) Dollars in millions except as noted**	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
INCOME STATEMENT
Net interest income	$	182		$	192		$	182		$	176		$	183
Noninterest income
Net commercial mortgage banking
Net gains on loan sales		13			21			18			9			20
Servicing and other fees, net of amortization		17			16			15			14			12
Other		147			118			108			113			118

Noninterest income		177			155			141			136			150

Total revenue		359			347			323			312			333
Provision for (recoveries of) credit losses		23			(1	)		(48	)		(4	)		9
Noninterest expense		184			187			168			167			181

Pretax earnings		152			161			203			149			143
Noncontrolling interests in income of consolidated entities		(6	)		(14	)		(11	)		(11	)		(11	)
Income taxes		50			57			70			50			46

Earnings	$	108		$	118		$	144		$	110		$	108

AVERAGE BALANCE SHEET
Loans
Corporate banking (b)	$	9,829		$	11,436		$	10,940		$	10,417		$	10,139
Commercial real estate		2,620			2,580			2,139			1,807			1,824
Commercial - real estate related		2,202			2,139			2,090			1,782			1,743
Asset-based lending		4,227			4,227			4,303			4,050			3,976

Total loans (b)		18,878			20,382			19,472			18,056			17,682
Loans held for sale		923			789			694			598			555
Other assets		6,280			6,073			6,014			5,430			4,514

Total assets	$	26,081		$	27,244		$	26,180		$	24,084		$	22,751

Deposits	$	10,129		$	9,535		$	9,165		$	8,683		$	8,536
Commercial paper (c)		514			2,553			2,168			2,127			1,954
Other liabilities		4,160			3,840			4,005			3,777			3,395
Capital		1,787			1,743			1,671			1,692			1,590

Total funds	$	16,590		$	17,671		$	17,009		$	16,279		$	15,475

PERFORMANCE RATIOS
Return on average capital		24	%		27	%		35	%		26	%		27	%
Noninterest income to total revenue		49			45			44			44			45
Efficiency		51			54			52			54			54
COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	126		$	119		$	105		$	98		$	93
Acquisitions/additions		21			18			21			14			12
Repayments/transfers		(11	)		(11	)		(7	)		(7	)		(7	)

End of period	$	136		$	126		$	119		$	105		$	98

OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	105		$	105		$	103		$	97		$	99
Capital Markets	$	62		$	42		$	29		$	42		$	44
Midland Loan Services	$	37		$	35		$	29		$	30		$	27
Equipment Leasing	$	17		$	16		$	18		$	18		$	21
Total loans (e)	$	18,817		$	21,084		$	20,726		$	18,595		$	17,959
Nonperforming assets (e)	$	124		$	67		$	77		$	65		$	71
Net charge-offs (recoveries)	$	28		$	5		$	(54	)	$	(2	)	$	3
Period-end full-time headcount		3,050			2,913			2,995			2,961			2,974
Net carrying amount of commercial mortgage servicing rights (e)	$	344		$	297		$	276		$	258		$	242

(a)	See notes (a) and ( b) on pages 4 and 5.

(b)	Includes lease financing and Market Street. Market Street was deconsolidated from our Consolidated Balance Sheet effective October 17, 2005.

(c)	Includes Market Street. See Supplemental Average Balance Sheet Information on pages 18 through 21.

(d)	Represents consolidated PNC amounts.

(e)	Presented as of period-end.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

BlackRock (Unaudited) (a)


*Year ended* *Taxable-equivalent basis* (a) *Dollars in millions except as noted*	December 31 2005			December 31 2004
INCOME STATEMENT
Investment advisory and administrative fees	$	1,018		$	633
Other income		173			92

Total revenue		1,191			725
Operating expense		748			423
Operating expense - LTIP expense		59			104
Fund administration and servicing costs		43			32

Total expense		850			559

Operating income		341			166
Nonoperating income		38			36

Pretax earnings		379			202
Minority interest		3			5
Income taxes		142			54

Earnings	$	234		$	143

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	484		$	184
Other assets		1,364			961

Total assets	$	1,848		$	1,145

Liabilities and minority interest	$	926		$	377
Stockholders’ equity		922			768

Total liabilities and stockholders’ equity	$	1,848		$	1,145

PERFORMANCE DATA
Return on average equity		28	%		19	%
Operating margin (b)		36			38
Diluted earnings per share	$	3.50		$	2.17

ASSETS UNDER MANAGEMENT (in billions) (period end)
Separate accounts
Fixed income	$	280		$	216
Cash management		7			7
Cash management - securities lending		5			7
Equity		21			10
Alternative investment products		25			8

Total separate accounts		338			248
Mutual funds (c)
Fixed income		25			25
Cash management		74			64
Equity		16			5

Total mutual funds		115			94

Total assets under management	$	453		$	342

OTHER INFORMATION
Period-end full-time headcount		2,151			1,142

(a) See notes (a) and (b) on page 4. (b) Calculated as operating income excluding the LTIP expense, SSRM acquisition costs, appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans, and the Trepp LLC bonus 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 income (loss), GAAP basis	$	341		$	166
Add back: LTIP expense		59			104
Less: portion of LTIP to be funded by BlackRock		(10	)		(19	)
Add back: SSRM acquisition costs		9			1
Add back: Appreciation on assets related to deferred compensation plans		10			4
Add back: Trepp LLC bonus					7

Operating income, as adjusted	$	409		$	263

Total revenue, GAAP basis	$	1,191		$	725
Less: reimbursable property management compensation		23
Less: fund administration and servicing costs		43			32

Revenue used for operating margin calculation, as reported	$	1,125		$	693

Operating margin, GAAP basis		29	%		23	%
Operating margin, as adjusted		36	%		38	%

We believe that operating margin, as adjusted, is an effective indicator of management’s ability to, and useful to management in deciding how to, effectively employ BlackRock’s resources and, as such, provides useful disclosure to investors. The portion of the LTIP expense associated with awards to be met by the distribution to the LTIP participants of shares of BlackRock stock currently held by PNC has been excluded from operating income because, exclusive of the impact related to LTIP participants’ options, these charges will not impact BlackRock’s book value. SSRM acquisition costs consist of certain compensation costs and professional fees. Compensation cost reflected in this amount represents direct incentives related to alternative product performance fees generated in 2004 by SSRM employees, assumed in conjunction with the acquisition and settled by BlackRock with no future service requirement. Compensation expense associated with appreciation on assets related to BlackRock’s deferred compensation plans has been excluded because investment returns on these assets reported in nonoperating income results in a nominal impact on net income. We have excluded fund administration and servicing costs from the operating margin calculation because these costs fluctuate based on the discretion of a third party. 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 revenue used for operating margin measurement, as adjusted, because they bear no economic cost to BlackRock. We have excluded the impact on operating margin of the incentive compensation recognized during the second quarter of 2004 related to the gain on the sale of BlackRock’s interest in Trepp LLC as such expense is not indicative of the ongoing level of incentive compensation for BlackRock.

(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 13

BlackRock (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis* (a) *Dollars in millions except as noted*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
INCOME STATEMENT
Investment advisory and administrative fees	$	320		$	255		$	231		$	212		$	163
Other income		49			46			40			38			25

Total revenue		369			301			271			250			188
Operating expense		230			195			163			161			112
Operating expense - LTIP expense		15			14			16			14			13
Fund administration and servicing costs		11			12			10			9			7

Total expense		256			221			189			184			132

Operating income		113			80			82			66			56
Nonoperating income		6			19			5			8			8

Pretax earnings		119			99			87			74			64
Minority interest		1			1			1						1
Income taxes		45			37			33			27			13

Earnings	$	73		$	61		$	53		$	47		$	50

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	484		$	492		$	500		$	444		$	184
Other assets		1,364			1,181			1,063			1,050			961

Total assets	$	1,848		$	1,673		$	1,563		$	1,494		$	1,145

Liabilities and minority interest	$	926		$	806		$	709		$	648		$	377
Stockholders’ equity		922			867			854			846			768

Total liabilities and stockholders’ equity	$	1,848		$	1,673		$	1,563		$	1,494		$	1,145

PERFORMANCE DATA
Return on average equity		32	%		28	%		25	%		24	%		26	%
Operating margin (b)		36			35			37			38			38
Diluted earnings (loss) per share	$	1.09		$	.92		$	.80		$	.70		$	.75

ASSETS UNDER MANAGEMENT (in billions) (period end)
Separate accounts
Fixed income	$	280		$	265		$	258		$	240		$	216
Cash management		7			8			8			7			7
Cash management - securities lending		5			6			7			7			7
Equity		21			20			19			19			10
Alternative investment products		25			25			23			19			8

Total separate accounts		338			324			315			292			248
Mutual funds (c)
Fixed income		25			25			26			25			25
Cash management		74			63			60			60			64
Equity		16			16			13			14			5

Total mutual funds		115			104			99			99			94

Total assets under management	$	453		$	428		$	414		$	391		$	342

OTHER INFORMATION
Period-end full-time headcount		2,151			2,145			2,141			1,999			1,142
(a) See notes (a) and (b) on pages 4 and 5. (b) Calculated as operating income excluding the LTIP expense, 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 income (loss), GAAP basis	$	113		$	80		$	82		$	66		$	56
Add back: LTIP expense		15			14			16			14			13
Less: portion of LTIP to be funded by BlackRock		(2	)		(2	)		(4	)		(2	)		(2	)
Add back: SSRM acquisition costs											9
Add back: Appreciation on assets related to deferred compensation plans					8						2			2

Operating income, as adjusted	$	126		$	100		$	94		$	89		$	69

Total revenue, GAAP basis	$	369		$	301		$	271		$	250		$	188
Less: reimbursable property management compensation		6			7			6			4
Less: fund administration and servicing costs		12			12			10			9			7

Revenue used for operating margin calculation, as reported	$	351		$	282		$	255		$	237		$	181

Operating margin, GAAP basis		31	%		27	%		30	%		26	%		30	%
Operating margin, as adjusted		36	%		35	%		37	%		38	%		38	%

(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 14

PFPC (Unaudited) (a)


*Year ended* *Dollars in millions except as noted*	December 31 2005			December 31 2004
INCOME STATEMENT
Fund servicing revenue	$	879		$	814
Other revenue		10

Total revenue		889			814
Operating expense		671			643
Amortization of other intangibles, net		14			3

Operating income		204			168
Debt financing		38			54
Other nonoperating income (expense) (b)		(5	)		3

Pretax earnings		161			117
Income taxes		57			47

Earnings	$	104		$	70

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,025		$	1,015
Other assets		1,103			1,557

Total assets	$	2,128		$	2,572

Debt financing	$	890		$	1,050
Other liabilities		864			1,253
Shareholder’s equity		374			269

Total funds	$	2,128		$	2,572

PERFORMANCE RATIOS
Return on average equity		32	%		30	%
Operating margin (c)		23			21

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)(d)
Domestic	$	754		$	660
Offshore		76			61

Total	$	830		$	721

Asset type (in billions)
Money market	$	356		$	341
Equity		305			230
Fixed income		104			101
Other		65			49

Total	$	830		$	721

Custody fund assets (in billions)	$	476		$	451

Shareholder accounts (in millions)
Transfer agency		19			21
Subaccounting		43			36

Total		62			57

OTHER INFORMATION
Period-end full-time headcount		4,391			4,460

(a)	See note (a) on page 4.

(b)	Net of nonoperating expense.

(c)	Operating income divided by total revenue.

(d)	Includes alternative investment net assets serviced.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

PFPC (Unaudited) (a)


*Three months ended* *Dollars in millions except as noted*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
INCOME STATEMENT
Fund servicing revenue	$	217		$	221		$	221		$	220		$	209
Other revenue											10

Total revenue		217			221			221			230			209
Operating expense		161			168			169			173			160
Amortization of other intangibles, net		4			3			4			3			4

Operating income		52			50			48			54			45
Debt financing		10			10			10			8			12
Other nonoperating income (expense) (b)		2						1			(8	)

Pretax earnings		44			40			39			38			33
Income taxes		15			12			15			15			13

Earnings	$	29		$	28		$	24		$	23		$	20

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,025		$	1,029		$	1,009		$	1,012		$	1,015
Other assets		1,103			1,053			1,074			896			1,557

Total assets	$	2,128		$	2,082		$	2,083		$	1,908		$	2,572

Debt financing	$	890		$	939		$	987		$	1,017		$	1,050
Other liabilities		864			799			778			598			1,253
Shareholder’s equity		374			344			318			293			269

Total funds	$	2,128		$	2,082		$	2,083		$	1,908		$	2,572

PERFORMANCE RATIOS
Return on average equity		32	%		34	%		31	%		33	%		31	%
Operating margin (c)		24			23			22			23			22

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)(d)
Domestic	$	754		$	726		$	699		$	680		$	660
Offshore		76			67			67			65			61

Total	$	830		$	793		$	766		$	745		$	721

Asset type (in billions)
Money market	$	356		$	333		$	333		$	340		$	341
Equity		305			284			262			245			230
Fixed income		104			114			111			107			101
Other		65			62			60			53			49

Total	$	830		$	793		$	766		$	745		$	721

Custody fund assets (in billions)	$	476		$	475		$	462		$	462		$	451

Shareholder accounts (in millions)
Transfer agency		19			19			20			20			21
Subaccounting		43			40			38			39			36

Total		62			59			58			59			57

OTHER INFORMATION
Period-end full-time headcount		4,391			4,457			4,599			4,549			4,460

(a)	See note (a) on page 4.

(b)	Net of nonoperating expense.

(c)	Operating income divided by total revenue.

(d)	Includes alternative investment net assets serviced.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

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

Taxable-equivalent basis


	Quarter ended															Year ended
Net Interest Income *In millions*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004			December 31 2005			December 31 2004
Interest income
Loans	$	730		$	721		$	649		$	580		$	549		$	2,680		$	2,050
Securities available for sale and held to maturity		234			219			199			173			155			825			573
Other		83			62			60			57			45			262			149

Total interest income		1,047			1,002			908			810			749			3,767			2,772

Interest expense
Deposits		305			270			224			182			152			981			484
Borrowed funds		174			166			143			116			88			599			299

Total interest expense		479			436			367			298			240			1,580			783

Net interest income (a)	$	568		$	566		$	541		$	512		$	509		$	2,187		$	1,989


	Quarter ended															Year ended
Net Interest Margin	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004			December 31 2005			December 31 2004
Average yields/rates
Yield on interest-earning assets
Loans		5.91	%		5.75	%		5.48	%		5.30	%		5.04	%		5.66	%		5.01	%
Securities available for sale and held to maturity		4.49			4.29			4.21			4.10			3.85			4.28			3.61
Other		5.00			4.15			4.11			3.22			3.25			4.11			2.98
Total yield on interest-earning assets		5.44			5.23			5.03			4.79			4.59			5.16			4.48
Rate on interest-bearing liabilities
Deposits		2.58			2.33			2.05			1.80			1.52			2.21			1.28
Borrowed funds		4.23			3.79			3.48			3.09			2.76			3.70			2.39
Total rate on interest-bearing liabilities		3.01			2.73			2.44			2.15			1.82			2.61			1.56

Interest rate spread		2.43			2.50			2.59			2.64			2.77			2.55			2.92
Impact of noninterest-bearing sources		.53			.46			.41			.38			.35			.45			.30

Net interest margin		2.96	%		2.96	%		3.00	%		3.02	%		3.12	%		3.00	%		3.22	%


	Quarter ended															Year ended
Trading Revenue (b) *In millions*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004			December 31 2005			December 31 2004
Net interest income	$	2		$	1		$	4		$	2		$	4		$	9		$	13
Noninterest income		49			47			11			50			44			157			113

Total trading revenue	$	51		$	48		$	15		$	52		$	48		$	166		$	126

Securities underwriting and trading	$	7		$	2		$	5		$	5		$	23		$	19		$	60
Foreign exchange		12			10			9			8			9			39			31
Financial derivatives		32			36			1			39			16			108			35

Total trading revenue	$	51		$	48		$	15		$	52		$	48		$	166		$	126

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


	Quarter ended										Year ended
*In millions*	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004		December 31 2005		December 31 2004
Net interest income, GAAP basis	$	555	$	559	$	534	$	506	$	503	$	2,154	$	1,969
Taxable-equivalent adjustment		13		7		7		6		6		33		20

Net interest income, taxable-equivalent basis	$	568	$	566	$	541	$	512	$	509	$	2,187	$	1,989

(b)	See pages 18 through 21 for disclosure of average trading assets and liabilities.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

Efficiency Ratios (Unaudited)


	Quarter ended										Year ended
	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004		December 31 2005		December 31 2004
GAAP and Bank Efficiency Ratios
GAAP basis efficiency ratio (a)	66	%	69	%	71	%	68	%	67	%	68	%	68	%
Bank efficiency ratio (b)	63	%	67	%	69	%	63	%	64	%	66	%	63	%

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

(b)

The bank efficiency ratio represents the consolidated (GAAP basis) efficiency ratio excluding the effect of BlackRock and PFPC. We believe the disclosure of this bank efficiency ratio is meaningful for investors because it provides a more relevant basis of comparison with other financial institutions that may not have significant asset management and processing businesses.

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


	Quarter ended										Year ended
*Dollars in millions*	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004		December 31 2005		December 31 2004
PNC total revenue, GAAP basis	$	1,706	$	1,672	$	1,459	$	1,479	$	1,407	$	6,316	$	5,532
Less: BlackRock revenue (c)		371		320		275		258		195		1,224		759
PFPC revenue (c)		209		211		212		214		197		846		763

Revenue, as adjusted	$	1,126	$	1,141	$	972	$	1,007	$	1,015	$	4,246	$	4,010

PNC noninterest expense, GAAP basis	$	1,126	$	1,156	$	1,036	$	999	$	949	$	4,317	$	3,735
Less: BlackRock noninterest expense		257		221		189		184		132		851		559
PFPC noninterest expense (c)		165		171		173		176		164		685		646

Noninterest expense, as adjusted	$	704	$	764	$	674	$	639	$	653	$	2,781	$	2,530

(c)

These amounts differ from amounts included on pages 12 through 15 of this financial supplement due to the presentation on pages 12 through 15 of BlackRock revenue on a taxable-equivalent basis and classification differences related to BlackRock and PFPC. Note 13 Business Segments in our third quarter 2005 Quarterly Report on Form 10-Q provides further details on these differences.


	Quarter ended										Year ended
	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004		December 31 2005		December 31 2004
Retail Banking Efficiency Ratios
Efficiency, GAAP basis (a)	57	%	60	%	61	%	62	%	60	%	60	%	62	%
Efficiency, as adjusted (b)	55	%	58	%	59	%	60	%	58	%	58	%	60	%

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

(b)

Calculated by excluding the impact of Hilliard Lyons activities included within the Retail Banking business segment. 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 Retail Banking excluding the impact of these Hilliard Lyons activities is meaningful for investors as it provides a more relevant basis of comparison with other retail banking franchises.

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


	Quarter ended										Year ended
*Dollars in millions*	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004		December 31 2005		December 31 2004
Revenue, GAAP basis	$	752	$	737	$	708	$	660	$	688	$	2,857	$	2,694
Less: Hilliard Lyons		48		50		51		49		51		198		200

Revenue, as adjusted	$	704	$	687	$	657	$	611	$	637	$	2,659	$	2,494
Noninterest expense, GAAP basis	$	431	$	441	$	434	$	409	$	412	$	1,715	$	1,671
Less: Hilliard Lyons		44		44		46		44		45		178		181

Noninterest expense, as adjusted	$	387	$	397	$	388	$	365	$	367	$	1,537	$	1,490


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Average Consolidated Balance Sheet (Unaudited)


*Year ended - in millions*	December 31 2005			December 31 2004
Assets
Interest-earning assets
Securities available for sale and held to maturity
Securities available for sale
Mortgage-backed, asset-backed, and other debt	$	11,376		$	8,857
U.S. Treasury and government agencies/corporations		7,558			6,567
State and municipal		167			220
Corporate stocks and other		173			232

Total securities available for sale		19,274			15,876
Securities held to maturity		1			2

Total securities available for sale and held to maturity (a)		19,275			15,878
Loans, net of unearned income
Commercial		19,007			16,627
Commercial real estate		2,609			2,137
Consumer		16,208			14,165
Residential mortgage		6,136			4,040
Lease financing		2,944			3,470
Other		453			506

Total loans, net of unearned income (a)		47,357			40,945
Loans held for sale		2,301			1,636
Federal funds sold and resale agreements		985			1,670
Other		3,083			1,692

Total interest-earning assets		73,001			61,821
Noninterest-earning assets
Allowance for loan and lease losses		(632	)		(608	)
Cash and due from banks		3,164			2,895
Other assets		13,015			11,158

Total assets (a)	$	88,548		$	75,266

Supplemental Average Balance Sheet Information
Loans excluding conduit	$	45,691		$	39,058
Market Street Funding Corporation conduit (a)		1,666			1,887

Total loans (a)	$	47,357		$	40,945

Trading Assets
Securities (b)	$	1,850		$	871
Resale agreements (c)		663			166
Financial derivatives (d)		772			605

Total trading assets	$	3,285		$	1,642

(a)	We deconsolidated Market Street from our Consolidated Balance Sheet in October 2005. Assets and liabilities of Market Street, consisting primarily of securities, loans, and commercial paper, are not reflected in our Average Consolidated Balance Sheet after October 17, 2005.

(b)	Included in “Interest-earning assets-Other” above.

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

(d)	Included in “Noninterest-earning assets-Other assets” above.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19

Average Consolidated Balance Sheet (Unaudited) (Continued)


*Year ended - in millions*	December 31 2005		December 31 2004
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	17,930	$	15,964
Demand		8,224		7,902
Savings		2,645		2,684
Retail certificates of deposit		11,623		9,075
Other time		1,559		686
Time deposits in foreign offices		2,347		1,371

Total interest-bearing deposits		44,328		37,682
Borrowed funds
Federal funds purchased		2,098		1,957
Repurchase agreements		2,189		1,433
Bank notes and senior debt		3,198		2,687
Subordinated debt		4,044		3,506
Commercial paper (a)		2,223		1,887
Other borrowed funds		2,447		1,045

Total borrowed funds		16,199		12,515

Total interest-bearing liabilities		60,527		50,197
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity
Demand and other noninterest-bearing deposits		13,309		12,015
Allowance for unfunded loan commitments and letters of credit		80		90
Accrued expenses and other liabilities		6,098		5,389
Minority and noncontrolling interests in consolidated entities		542		455
Shareholders’ equity		7,992		7,120

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	88,548	$	75,266

Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	44,328	$	37,682
Demand and other noninterest-bearing deposits		13,309		12,015

Total deposits	$	57,637	$	49,697
Transaction deposits	$	39,463	$	35,881
Market Street Funding Corporation commercial paper (a)	$	1,837	$	1,887
Common shareholders’ equity	$	7,984	$	7,112

Trading Liabilities
Securities sold short (b)	$	993	$	275
Repurchase agreements and other borrowings (c)		1,044		249
Financial derivatives (d)		825		594

Total trading liabilities	$	2,862	$	1,118

(a)	See note (a) on page 18.

(b)	Included in “Borrowed funds-Other” above.

(c)	Included in “Borrowed funds-Repurchase agreements” and “Borrowed funds-Other” above.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 20

Average Consolidated Balance Sheet (Unaudited)


*Three months ended - in millions*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Assets
Interest-earning assets
Securities available for sale and held to maturity
Securities available for sale
Mortgage-backed, asset-backed, and other debt	$	12,541		$	12,154		$	11,138		$	9,631		$	8,846
U.S. Treasury and government agencies/corporations		7,952			7,960			7,406			6,897			6,895
State and municipal		161			167			171			172			175
Corporate stocks and other		163			167			190			172			188

Total securities available for sale		20,817			20,448			18,905			16,872			16,104
Securities held to maturity								1						1

Total securities available for sale and held to maturity (a)		20,817			20,448			18,906			16,872			16,105
Loans, net of unearned income
Commercial		19,130			19,685			19,259			17,935			17,312
Commercial real estate		2,983			2,947			2,478			2,015			2,080
Consumer		16,310			16,673			16,195			15,641			15,280
Residential mortgage		7,175			6,739			5,742			4,855			4,683
Lease financing		2,821			2,937			2,978			3,041			3,216
Other		364			469			484			495			502

Total loans, net of unearned income (a)		48,783			49,450			47,136			43,982			43,073
Loans held for sale		2,715			2,390			2,152			1,941			1,771
Federal funds sold and resale agreements		643			423			649			2,249			1,274
Other		3,248			3,046			3,098			2,937			2,302

Total interest-earning assets		76,206			75,757			71,941			67,981			64,525
Noninterest-earning assets
Allowance for loan and lease losses		(628	)		(634	)		(655	)		(611	)		(582	)
Cash and due from banks		3,325			3,233			3,106			2,987			3,038
Other assets		13,167			12,720			13,167			13,005			11,791

Total assets (a)	$	92,070		$	91,076		$	87,559		$	83,362		$	78,772

Supplemental Average Balance Sheet Information
Loans excluding conduit	$	48,353		$	47,351		$	45,097		$	41,871		$	41,121
Market Street Funding Corporation conduit (a)		430			2,099			2,039			2,111			1,952

Total loans (a)	$	48,783		$	49,450		$	47,136		$	43,982		$	43,073

Trading Assets
Securities (b)	$	1,852		$	1,734		$	1,932		$	1,883		$	1,348
Resale agreements (c)		593			411			411			1,249			184
Financial derivatives (d)		849			695			864			679			668

Total trading assets	$	3,294		$	2,840		$	3,207		$	3,811		$	2,200

(a)	See note (a) on page 18. The deconsolidation of Market Street affected the following loan categories: commercial, consumer, lease financing and other.

(b)	Included in “Interest-earning assets-Other” above.

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

(d)	Included in “Noninterest-earning assets-Other assets” above.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 21

Average Consolidated Balance Sheet (Unaudited) (Continued)


*Three months ended - in millions*	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	19,194	$	18,447	$	17,482	$	16,562	$	16,328
Demand		8,378		8,343		8,205		7,965		7,999
Savings		2,377		2,589		2,787		2,831		2,819
Retail certificates of deposit		12,804		12,143		11,215		10,296		9,761
Other time		1,527		2,306		1,484		902		892
Time deposits in foreign offices		2,482		2,061		2,477		2,373		1,628

Total interest-bearing deposits		46,762		45,889		43,650		40,929		39,427
Borrowed funds
Federal funds purchased		2,518		1,704		2,506		1,659		1,676
Repurchase agreements		1,915		2,137		2,405		2,306		1,906
Bank notes and senior debt		3,558		3,271		3,288		2,663		2,535
Subordinated debt		4,438		3,996		3,826		3,911		3,476
Commercial paper (a)		798		3,316		2,438		2,344		1,947
Other borrowed funds		2,960		2,790		1,867		2,159		1,070

Total borrowed funds		16,187		17,214		16,330		15,042		12,610

Total interest-bearing liabilities		62,949		63,103		59,980		55,971		52,037
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity
Demand and other noninterest-bearing deposits		14,057		13,738		12,987		12,432		12,539
Allowance for unfunded loan commitments and letters of credit		80		84		78		76		96
Accrued expenses and other liabilities		6,049		5,408		6,095		6,856		6,283
Minority and noncontrolling interests in consolidated entities		599		518		526		527		501
Shareholders’ equity		8,336		8,225		7,893		7,500		7,316

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	92,070	$	91,076	$	87,559	$	83,362	$	78,772

Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	46,762	$	45,889	$	43,650	$	40,929	$	39,427
Demand and other noninterest-bearing deposits		14,057		13,738		12,987		12,432		12,539

Total deposits	$	60,819	$	59,627	$	56,637	$	53,361	$	51,966
Transaction deposits	$	41,629	$	40,528	$	38,674	$	36,959	$	36,866
Market Street Funding Corporation commercial paper (a)	$	514	$	2,553	$	2,167	$	2,125	$	1,947
Common shareholders’ equity	$	8,328	$	8,217	$	7,885	$	7,492	$	7,308

Trading Liabilities
Securities sold short (b)	$	961	$	806	$	750	$	1,462	$	401
Repurchase agreements and other borrowings (c)		985		933		1,078		1,185		479
Financial derivatives (d)		908		814		909		667		664

Total trading liabilities	$	2,854	$	2,553	$	2,737	$	3,314	$	1,544

(a)	See note (a) on page 18.

(b)	Included in “Borrowed funds-Other” above.

(c)	Included in “Borrowed funds-Repurchase agreements” and “Borrowed funds-Other” above.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 22

Details of Loans and Lending Statistics (Unaudited)

Loans


*Period ended - in millions*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Commercial
Retail/wholesale	$	4,854		$	5,114		$	5,295		$	5,236		$	4,961
Manufacturing		4,045			4,321			4,498			4,327			3,944
Other service providers		1,986			2,173			2,198			1,820			1,787
Real estate related		2,577			2,492			2,520			2,179			2,104
Financial services		1,438			1,297			1,374			1,308			1,145
Health care		616			608			671			560			560
Other		3,809			4,098			3,447			3,043			2,937

Total commercial		19,325			20,103			20,003			18,473			17,438

Commercial real estate
Real estate projects		2,244			2,147			2,030			1,404			1,460
Mortgage		918			779			806			521			520

Total commercial real estate		3,162			2,926			2,836			1,925			1,980

Equipment lease financing		3,628			3,721			3,668			3,719			3,907

Total commercial lending		26,115			26,750			26,507			24,117			23,325

Consumer
Home equity		13,790			13,722			13,531			12,968			12,734
Automobile		938			931			874			854			836
Other		1,445			2,232			2,165			1,953			2,036

Total consumer		16,173			16,885			16,570			15,775			15,606

Residential mortgage		7,307			7,156			6,508			5,007			4,772
Vehicle lease financing					101			124			158			189
Other		341			474			455			489			505
Unearned income		(835	)		(856	)		(847	)		(872	)		(902	)

Total, net of unearned income (a)	$	49,101		$	50,510		$	49,317		$	44,674		$	43,495

Supplemental Loan Information
Loans excluding conduit	$	49,101		$	47,889		$	47,125		$	42,479		$	41,243
Market Street Funding Corporation conduit (a)					2,621			2,192			2,195			2,252

Total loans (a)	$	49,101		$	50,510		$	49,317		$	44,674		$	43,495


	December 31 2005		December 31 2004
Commercial Lending Exposure (b)(c)
Investment grade or equivalent	46	%	47	%
Non-investment grade
$50 million or greater	2	%	2	%
All other non-investment grade	52	%	51	%

Total	100	%	100	%

(a)	See note (a) on page 18.

(b)

Includes all commercial loans in the Retail Banking and Corporate & Institutional Banking business segments other than the loans of Market Street. 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. We deconsolidated Market Street from our Consolidated Balance Sheet effective October 17, 2005.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 23

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*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Beginning balance	$	634		$	628		$	600		$	607		$	581
Charge-offs
Commercial		(8	)		(16	)		(16	)		(12	)		(15	)
Commercial real estate		(1	)
Equipment lease financing		(29	)											(1	)
Consumer		(12	)		(12	)		(11	)		(10	)		(11	)
Residential mortgage		(1	)					(1	)

Total charge-offs		(51	)		(28	)		(28	)		(22	)		(27	)
Recoveries
Commercial (a)		6			8			62			6			9
Commercial real estate					1
Equipment lease financing								1						1
Consumer		4			4			3			4			3
Residential mortgage

Total recoveries (a)		10			13			66			10			13
Net recoveries (charge-offs)
Commercial (a)		(2	)		(8	)		46			(6	)		(6	)
Commercial real estate		(1	)		1
Equipment lease financing		(29	)					1
Consumer		(8	)		(8	)		(8	)		(6	)		(8	)
Residential mortgage		(1	)					(1	)

Total net recoveries (charge-offs) (a)		(41	)		(15	)		38			(12	)		(14	)
Provision for (recoveries of) credit losses		24			16			(27	)		8			19
Acquired allowance - Riggs								23
Net change in allowance for unfunded loan commitments and letters of credit		(21	)		5			(6	)		(3	)		21

Ending balance	$	596		$	634		$	628		$	600		$	607

Supplemental Information
Commercial lending net recoveries (charge-offs) (a) (b)	$	(32	)	$	(7	)	$	47		$	(6	)	$	(6	)
Consumer lending net recoveries (charge-offs) (c)		(9	)		(8	)		(9	)		(6	)		(8	)

Total net recoveries (charge-offs) (a)	$	(41	)	$	(15	)	$	38		$	(12	)	$	(14	)
Net charge-offs to average loans
Commercial lending		.51	%		.11	%		(.73	)%		.11	%		.11	%
Consumer lending		.15			.14			.15			.14			.16

(a)	Second quarter 2005 amounts reflect the impact of a $53 million loan recovery during that period.

(b)	Includes commercial, commercial real estate and equipment lease financing.

(c)	Includes consumer and residential mortgage.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


*Three months ended - in millions*	December 31 2005		September 30 2005			June 30 2005		March 31 2005		December 31 2004
Beginning balance	$	79	$	84		$	78	$	75	$	96
Net change in allowance for unfunded loan commitments and letters of credit		21		(5	)		6		3		(21	)

Ending balance	$	100	$	79		$	84	$	78	$	75


Net Unfunded Commitments

*In millions*	December 31 2005		September 30 2005			June 30 2005		March 31 2005		December 31 2004
Net unfunded commitments (d)	$	40,178	$	35,261		$	33,925	$	30,237	$	30,306

(d)	Balance at December 31, 2005 reflects the deconsolidation of Market Street from our Consolidated Balance Sheet effective October 17, 2005. Amounts related to Market Street are now considered third party net unfunded commitments.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 24

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	December 31 2005			September 30 2005			June 30 2005			March 31 2005			December 31 2004
Nonaccrual loans
Commercial	$	134		$	86		$	88		$	83		$	89
Commercial real estate		14			11			11			11			14
Equipment lease financing		17			3			4			5			5
Consumer		10			11			10			13			11
Residential mortgage		15			16			19			19			21

Total nonaccrual loans		190			127			132			131			140
Troubled debt restructured loan														3

Total nonperforming loans		190			127			132			131			143
Nonperforming loans held for sale (a)		1			1			2			2			3

Foreclosed and other assets
Equipment lease financing		13			13			13			13			14
Residential mortgage		9			11			13			11			10
Other		3			4			4			5			5

Total foreclosed and other assets		25			28			30			29			29

Total nonperforming assets (b)	$	216		$	156		$	164		$	162		$	175

Nonperforming loans to total loans		.39	%		.25	%		.27	%		.29	%		.33	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.42			.29			.32			.35			.39
Nonperforming assets to total assets		.23			.17			.18			.19			.22


(a) Includes troubled debt restructured loans held for sale.	$	1		$	1		$	2		$	2		$	2
(b) Excludes equity management assets carried at estimated fair value (December 31, 2005, September 30, 2005, June 30, 2005, March 31, 2005, and December 31, 2004 amounts include troubled debt restructured assets of $7 million, $16 million, $15 million, $10 million, and $11 million, respectively).	$	25		$	27		$	31		$	33		$	32

Change in Nonperforming Assets


*In millions*	Year ended
January 1, 2005	$	175
Transferred from accrual		340
Returned to performing		(10	)
Principal reductions and payoffs		(183	)
Asset sales		(16	)
Charge-offs and valuation adjustments		(90	)

December 31, 2005	$	216


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 25

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business


*Period ended - in millions*	December 31 2005		September 30 2005		June 30 2005		March 31 2005		December 31 2004
Retail Banking
Nonperforming loans	$	81	$	78	$	74	$	83	$	89
Foreclosed and other assets		9		9		10		10		11

Total	$	90	$	87	$	84	$	93	$	100

Corporate & Institutional Banking
Nonperforming loans	$	108	$	48	$	57	$	46	$	51
Nonperforming loans held for sale		1		1		2		2		3
Foreclosed and other assets		15		18		18		17		17

Total	$	124	$	67	$	77	$	65	$	71

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

Total	$	2	$	2	$	3	$	4	$	4

Consolidated Totals
Nonperforming loans	$	190	$	127	$	132	$	131	$	143
Nonperforming loans held for sale		1		1		2		2		3
Foreclosed and other assets		25		28		30		29		29

Total	$	216	$	156	$	164	$	162	$	175

Largest Nonperforming Assets at December 31, 2005 - in millions (b)


Ranking	Outstandings			Industry
1	$	20		Food and Beverage Mfg.
2		18		Auto and Other Transportation
3		13		Air Transportation
4		13		Air Transportation
5		12		Computer and Electronic Mfg.
6		10		Fabricated Metal Mfg.
7		6		Real Estate
8		5		Professional and Support Services
9		4		Auto and Other Transportation
10		4		Construction

Total	$	105

As a percent of nonperforming assets		49	%

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

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


		Page 26

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.

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 is also 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 the liquidation value of preferred stock.

Custody fund 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.

Duration of equity – An estimate of the rate sensitivity of a firm’s economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., vulnerable to rising rates). For example, if the duration of equity is +1.5 years, the economic value of equity declines by 1.5% for each 100 basis point increase in interest rates.

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

Economic 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.

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 27

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.

GAAP – Accounting principles generally accepted in the United States of America.

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 the sum of net interest income and noninterest income.

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

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

Operating leverage – The period to period percentage change in total revenue less the percentage change in noninterest expense. A positive percentage indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative percentage implies expense growth exceeded revenue growth (i.e., negative operating leverage).

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 average 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.

Tangible common capital ratio - Common shareholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights) divided by 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 it fully equivalent to interest income on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.


		Page 28

Tier 1 risk-based capital - Tier 1 risk-based capital equals: total shareholders’ equity, plus trust preferred capital securities, plus certain minority interests that are held by others; less goodwill and certain other 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 risk-based 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 offshore fund investment assets for which we provide related processing services. We do not include these assets on our Consolidated Balance Sheet.

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 29

Business Segment Products and Services

Retail Banking provides deposit, lending, brokerage, trust, investment management and cash management services to approximately 2.5 million consumer and small business customers. Our customers are serviced through 839 offices in our branch network, the call center located in Pittsburgh and the Internet – www.pncbank.com. The branch network is located mainly in Pennsylvania, New Jersey, Ohio, Kentucky, Delaware and the Greater Washington, D.C. area, including Virginia and Maryland. Brokerage services are provided through PNC Investments, LLC and J.J.B. Hilliard, W.L. Lyons, Inc. Retail Banking 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. These services are provided to individuals and corporations primarily within our primary geographic markets.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government entities and selectively to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services. Capital markets-related products include foreign exchange, derivatives, loan syndications and securities underwriting and distribution. It also provides commercial loan servicing, real estate advisory and technology solutions for the commercial real estate finance industry and provides mergers and acquisitions advisory and related services to middle-market companies. Corporate & Institutional Banking provides products and services generally within PNC’s primary geographic markets and provides certain products and services nationally.

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, cash management 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 institutional investors.

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