Financial Supplement (unaudited) for First Quarter 2006

EXHIBIT 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2006

UNAUDITED

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2006

UNAUDITED


		Page
Consolidated Income Statement		1
Consolidated Balance Sheet		2
Capital Ratios and Asset Quality Ratios		2
Results of Businesses
Summary of Business Results and Headcount		3
Retail Banking		4-5
Corporate & Institutional Banking		6
BlackRock		7
PFPC		8
Details of Net Interest Income, Net Interest Margin, and Trading Revenue		9
Efficiency Ratios		10
Average Consolidated Balance Sheet and Supplemental Average Balance Sheet Information		11-12
Details of Loans and Lending Statistics		13
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and Net Unfunded Commitments		14
Details of Nonperforming Assets		15-16
Glossary of Terms		17-19
Business Segment Products and Services		20

The information contained in this Financial Supplement is preliminary, unaudited and based on data available at April 20, 2006. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation.

As disclosed in our 2005 Form 10-K, in October 2005 Market Street Funding (“Market Street”), a multi-seller asset-backed commercial paper conduit owned by an independent third party and administered by PNC Bank, N.A., 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 PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)


*For the three months ended - in millions, except per share data*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Interest Income
Loans	$	747		$	727		$	718		$	646		$	578
Securities available for sale and held to maturity		243			233			219			198			172
Other		76			74			58			57			54

Total interest income		1,066			1,034			995			901			804

Interest Expense
Deposits		327			305			270			224			182
Borrowed funds		183			174			166			143			116

Total interest expense		510			479			436			367			298

Net interest income		556			555			559			534			506
Provision for (recoveries of) credit losses		22			24			16			(27	)		8

Net interest income less provision for (recoveries of) credit losses		534			531			543			561			498

Noninterest Income
Asset management		461			431			364			334			314
Fund servicing		221			213			218			219			220
Service charges on deposits		73			74			73			67			59
Brokerage		59			57			56			57			55
Consumer services		89			80			76			73			64
Corporate services		135			143			121			113			108
Equity management gains		7			16			36			12			32
Net securities losses		(4	)		(4	)		(2	)		(26	)		(9	)
Trading		57			49			47			11			50
Other		87			95			127			69			81

Total noninterest income		1,185			1,154			1,116			929			974

Noninterest Expense
Compensation		555			556			545			481			479
Employee benefits		87			77			86			86			83
Net occupancy		79			82			86			72			73
Equipment		77			75			73			74			74
Marketing		20			31			30			25			20
Other		353			324			339			302			271

Total noninterest expense		1,171			1,145			1,159			1,040			1,000

Income before minority and noncontrolling interests and income taxes		548			540			500			450			472
Minority and noncontrolling interests in income of consolidated entities		13			4			14			9			6
Income taxes		181			181			152			159			112

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

Earnings Per Common Share
Basic	$	1.21		$	1.22		$	1.16		$	.99		$	1.26
Diluted	$	1.19		$	1.20		$	1.14		$	.98		$	1.24

Average Common Shares Outstanding
Basic		292			290			289			285			281
Diluted		296			294			292			288			284

Noninterest income to total revenue		68	%		68	%		67	%		63	%		66	%

Effective tax rate (a)		33.0	%		33.5	%		30.4	%		35.3	%		23.7	%

(a)

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 2005 Annual Report on Form 10-K for additional information.

Page 1


THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Assets
Cash and due from banks	$	3,206		$	3,518		$	3,474		$	3,442		$	2,908
Federal funds sold and resale agreements		511			350			907			89			1,252
Other short-term investments, including trading securities		2,641			2,543			2,553			2,203			2,354
Loans held for sale		2,266			2,449			2,377			2,275			2,067
Securities available for sale and held to maturity		21,529			20,710			20,658			20,437			18,449
Loans, net of unearned income of $832, $835, $856, $847 and $872		49,521			49,101			50,510			49,317			44,674
Allowance for loan and lease losses		(597	)		(596	)		(634	)		(628	)		(600	)

Net loans		48,924			48,505			49,876			48,689			44,074
Goodwill		3,625			3,606			3,457			3,405			2,965
Other intangible assets		857			860			768			765			624
Other		9,698			9,413			9,171			9,489			8,666

Total assets	$	93,257		$	91,954		$	93,241		$	90,794		$	83,359

Liabilities
Deposits
Noninterest-bearing	$	14,250		$	14,988		$	14,099		$	13,751		$	12,808
Interest-bearing		46,649			45,287			46,115			44,922			42,361

Total deposits		60,899			60,275			60,214			58,673			55,169
Borrowed funds
Federal funds purchased		3,156			4,128			1,477			2,701			995
Repurchase agreements		2,892			1,691			2,054			2,042			2,077
Bank notes and senior debt		3,362			3,875			3,475			2,920			3,662
Subordinated debt		4,387			4,469			4,506			4,105			3,988
Commercial paper		120			10			3,447			3,998			2,381
Other		2,523			2,724			3,415			2,440			1,411

Total borrowed funds		16,440			16,897			18,374			18,206			14,514
Allowance for unfunded loan commitments and letters of credit		103			100			79			84			78
Accrued expenses		2,585			2,770			2,637			2,358			2,288
Other		3,822			2,759			3,025			2,723			3,199

Total liabilities		83,849			82,801			84,329			82,044			75,248

Minority and noncontrolling interests in consolidated entities		627			590			595			507			532

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		1,349			1,358			1,358			1,353			1,275
Retained earnings		9,230			9,023			8,814			8,626			8,485
Deferred compensation expense		(44	)		(59	)		(64	)		(70	)		(42	)
Accumulated other comprehensive loss		(394	)		(267	)		(200	)		(41	)		(175	)
Common stock held in treasury at cost: 57, 60, 62, 62, and 70 shares		(3,124	)		(3,256	)		(3,355	)		(3,389	)		(3,728	)

Total shareholders’ equity		8,781			8,563			8,317			8,243			7,579

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	93,257		$	91,954		$	93,241		$	90,794		$	83,359

CAPITAL RATIOS
Tier 1 risk-based (b)		8.8	%		8.3	%		8.4	%		8.3	%		8.7	%
Total risk-based (b)		12.6			12.1			12.5			11.9			12.6
Leverage (b)		7.6			7.2			7.1			7.2			7.3
Tangible common equity		5.2			5.0			4.9			5.0			5.3
Common shareholders’ equity to assets		9.4			9.3			8.9			9.1			9.1
ASSET QUALITY RATIOS
Nonperforming assets to loans, loans held for sale and foreclosed assets		.40	%		.42	%		.29	%		.32	%		.35	%
Nonperforming loans to loans		.37			.39			.25			.27			.29
Net charge-offs to average loans (For the three months ended) (c)		.15			.33			.12			(.32	)		.11
Allowance for loan and lease losses to loans		1.21			1.21			1.26			1.27			1.34
Allowance for loan and lease losses to nonperforming loans		328			314			499			476			458

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

(b)	Estimated for March 31, 2006.

(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%.

Page 2


THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Results and Headcount (Unaudited)


*Three months ended – dollars in millions (a)*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Earnings
Retail Banking	$	190		$	195		$	176		$	162		$	149
Corporate & Institutional Banking		105			108			118			144			110
BlackRock		71			73			61			53			47
PFPC		27			29			28			24			23

Total business segment earnings		393			405			383			383			329
Minority interest in income of BlackRock		(22	)		(22	)		(19	)		(16	)		(14	)
Other		(17	)		(28	)		(30	)		(85	)		39

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

Revenue (b)
Retail Banking	$	753		$	755		$	740		$	710		$	663
Corporate & Institutional Banking		340			358			346			321			310
BlackRock (c)		410			375			320			276			258
PFPC (c)		218			209			211			212			214

Total business segment revenue		1,721			1,697			1,617			1,519			1,445
Other		27			25			65			(49	)		41

Total consolidated revenue	$	1,748		$	1,722		$	1,682		$	1,470		$	1,486

(a)

This summary also serves as a reconciliation of total earnings and revenue for all business segments to total consolidated net income and revenue. 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 it fully equivalent to interest income on other taxable 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):


	March 31 2006		December 31 2005		September 30 2005		June 30 2005		March 31 2005
Total consolidated revenue, book (GAAP) basis	$	1,741	$	1,709	$	1,675	$	1,463	$	1,480
Taxable-equivalent adjustment		7		13		7		7		6

Total consolidated revenue, taxable-equivalent basis	$	1,748	$	1,722	$	1,682	$	1,470	$	1,486

(c)	Amounts for BlackRock and PFPC represent the sum of total operating revenue and nonoperating income (less debt financing costs for PFPC).


	March 31 2006	December 31 2005	September 30 2005	June 30 2005	March 31 2005
Period-end Headcount
Full-time headcount
Retail Banking	9,725	9,679	9,891	10,079	9,578
Corporate & Institutional Banking	1,892	1,861	1,740	1,791	1,756
BlackRock	2,232	2,151	2,145	2,141	1,999
PFPC	4,291	4,391	4,457	4,599	4,549
Other
Operations & Technology	3,942	3,966	4,010	4,104	4,096
Staff Services	1,560	1,545	1,568	1,683	1,662

Total Other	5,502	5,511	5,578	5,787	5,758

Total full-time headcount	23,642	23,593	23,811	24,397	23,640
Total part-time headcount	2,003	1,755	1,558	1,477	1,449

Total headcount	25,645	25,348	25,369	25,874	25,089

The period-end headcount statistics disclosed for each business segment reflect staff directly employed by the respective business segment and exclude operations, technology and staff services employees.

Page 3


THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
INCOME STATEMENT
Net interest income	$	408		$	417		$	407		$	397		$	372
Noninterest income
Asset management		87			86			87			83			81
Service charges on deposits		71			72			71			65			57
Brokerage		58			54			54			56			53
Consumer services		86			78			72			68			60
Other		43			48			49			41			40

Total noninterest income		345			338			333			313			291

Total revenue		753			755			740			710			663
Provision for credit losses		9			9			14			15			14
Noninterest expense		436			434			444			436			412

Pretax earnings		308			312			282			259			237
Minority interest		4
Income taxes		114			117			106			97			88

Earnings	$	190		$	195		$	176		$	162		$	149

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	13,778		$	13,751		$	13,570		$	13,267		$	12,803
Indirect		987			980			952			917			892
Other consumer		1,248			1,264			1,205			1,171			1,141

Total consumer		16,013			15,995			15,727			15,355			14,836
Commercial		5,433			5,282			5,235			5,033			4,821
Floor plan		970			936			903			1,050			1,013
Residential mortgage		1,648			1,716			1,789			1,326			776
Other		236			244			247			269			280

Total loans		24,300			24,173			23,901			23,033			21,726
Goodwill		1,472			1,467			1,458			1,248			1,144
Loans held for sale		1,880			1,802			1,602			1,455			1,345
Other assets		1,717			1,598			1,585			1,482			1,403

Total assets	$	29,369		$	29,040		$	28,546		$	27,218		$	25,618

Deposits
Noninterest-bearing demand	$	7,777		$	7,925		$	7,891		$	7,529		$	7,200
Interest-bearing demand		8,025			8,095			8,044			7,929			7,710
Money market		14,644			14,399			14,042			13,175			12,902

Total transaction deposits		30,446			30,419			29,977			28,633			27,812
Savings		2,183			2,309			2,516			2,712			2,766
Certificates of deposit		13,115			12,671			11,996			11,107			10,171

Total deposits		45,744			45,399			44,489			42,452			40,749
Other liabilities		560			392			370			396			408
Capital		2,943			2,965			2,919			2,774			2,748

Total funds	$	49,247		$	48,756		$	47,778		$	45,622		$	43,905

PERFORMANCE RATIOS
Return on average capital		26	%		26	%		24	%		23	%		22	%
Noninterest income to total revenue		46			45			45			44			44
Efficiency, GAAP basis		58			57			60			61			62
Efficiency, as adjusted (b)		56			55			58			59			60

(a)	See notes (a) and (b) on page 3.

(b)	See page 10 for a reconciliation of the efficiency ratio, as adjusted, to the efficiency ratio on a GAAP basis.

Page 4


THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


*Three months ended* *Dollars in millions except as noted*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
OTHER INFORMATION (a)
Credit-related statistics:
Nonperforming assets	$	93		$	90		$	87		$	84		$	93
Net charge-offs	$	14		$	12		$	11		$	16		$	14
Annualized net charge-off ratio		.23	%		.20	%		.18	%		.28	%		.26	%

Home equity portfolio credit statistics:
% of first lien positions		45	%		46	%		47	%		48	%		50	%
Weighted average loan-to-value ratios		68	%		68	%		70	%		70	%		69	%
Weighted average FICO scores		727			728			721			720			717
Loans 90 days past due		.22	%		.21	%		.18	%		.18	%		.19	%

Checking-related statistics:
Retail Banking checking relationships		1,950,000			1,934,000			1,921,000			1,882,000			1,782,000
Consumer DDA households using online banking		880,000			855,000			830,000			793,000			748,000
% of consumer DDA households using online banking		50	%		49	%		48	%		47	%		47	%
Consumer DDA households using online bill payment		253,000			205,000			188,000			167,000			132,000
% of consumer DDA households using online bill payment		14	%		12	%		11	%		10	%		8	%

Small business deposits:
Noninterest-bearing demand	$	4,357		$	4,555		$	4,499		$	4,267		$	4,086
Interest-bearing demand		1,454			1,656			1,547			1,478			1,556
Money market		2,705			2,941			3,045			2,774			2,630
Certificates of deposit		553			530			410			353			352

Brokerage statistics:
Margin loans	$	205		$	217		$	223		$	218		$	249
Financial consultants (b)		783			779			784			789			783
Full service brokerage offices		100			100			99			98			96
Brokerage account assets (billions)	$	43		$	42		$	42		$	41		$	39

Other statistics:
Gains on sales of education loans (c)	$	4		$	4		$	11		$	3		$	1
Period-end full-time headcount		9,725			9,679			9,891			10,079			9,578
Period-end part-time headcount		1,373			1,117			934			832			773
ATMs		3,763			3,721			3,770			3,788			3,610
Branches (d)		846			839			830			827			772

ASSETS UNDER ADMINISTRATION (in billions) (e)
Assets under management
Personal	$	40		$	40		$	41		$	41		$	40
Institutional		10			9			9			9			9

Total	$	50		$	49		$	50		$	50		$	49

Asset Type
Equity	$	32		$	31		$	31		$	31		$	30
Fixed income		12			12			13			13			13
Liquidity/Other		6			6			6			6			6

Total	$	50		$	49		$	50		$	50		$	49

Nondiscretionary assets under administration
Personal	$	28		$	27		$	27		$	26		$	29
Institutional		59			57			58			59			63

Total	$	87		$	84		$	85		$	85		$	92

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

Total	$	87		$	84		$	85		$	85		$	92

(a)	Presented as of period-end, except for 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 4.

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

(e)	Excludes brokerage account assets.

Page 5


THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions except as noted*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
INCOME STATEMENT
Net interest income	$	175		$	184		$	194		$	183		$	178
Noninterest income
Corporate services		113			118			99			92			89
Other		52			56			53			46			43

Noninterest income		165			174			152			138			132

Total revenue		340			358			346			321			310
Provision for (recoveries of) credit losses		12			23			(1	)		(48	)		(4	)
Noninterest expense		176			177			172			155			154

Pretax earnings		152			158			175			214			160
Income taxes		47			50			57			70			50

Earnings	$	105		$	108		$	118		$	144		$	110

AVERAGE BALANCE SHEET
Loans
Corporate (b)	$	9,685		$	9,829		$	11,436		$	10,940		$	10,417
Commercial real estate		2,643			2,620			2,580			2,139			1,807
Commercial - real estate related		2,454			2,219			2,155			2,105			1,798
Asset-based lending		4,252			4,227			4,227			4,303			4,050

Total loans (b)		19,034			18,895			20,398			19,487			18,072
Loans held for sale		866			923			789			694			598
Other assets		5,596			5,508			5,497			5,466			4,873

Total assets	$	25,496		$	25,326		$	26,684		$	25,647		$	23,543

Deposits	$	9,584		$	10,129		$	9,535		$	9,165		$	8,683
Commercial paper (c)					514			2,553			2,168			2,127
Other liabilities		3,439			3,405			3,280			3,472			3,236
Capital		1,945			1,787			1,743			1,671			1,692

Total funds	$	14,968		$	15,835		$	17,111		$	16,476		$	15,738

PERFORMANCE RATIOS
Return on average capital		22	%		24	%		27	%		35	%		26	%
Noninterest income to total revenue		49			49			44			43			43
Efficiency		52			49			50			48			50

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	136		$	126		$	119		$	105		$	98
Acquisitions/additions		13			21			18			21			14
Repayments/transfers		(9	)		(11	)		(11	)		(7	)		(7	)

End of period	$	140		$	136		$	126		$	119		$	105

OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	102		$	105		$	105		$	103		$	97
Capital Markets	$	64		$	62		$	42		$	29		$	42
Midland Loan Services	$	42		$	41		$	39		$	32		$	32
Equipment Leasing	$	18		$	17		$	16		$	18		$	18
Total loans (e)	$	19,447		$	18,817		$	21,084		$	20,726		$	18,595
Nonperforming assets (e)	$	112		$	124		$	67		$	77		$	65
Net charge-offs (recoveries)	$	4		$	28		$	5		$	(54	)	$	(2	)
Period-end full-time headcount		1,892			1,861			1,740			1,791			1,756
Net gains on commercial mortgage loan sales	$	7		$	13		$	21		$	18		$	9
Net carrying amount of commercial mortgage servicing rights (e)	$	353		$	344		$	297		$	276		$	258

(a)	See notes (a) and (b) on page 3.

(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 11-12.

(d)	Represents consolidated PNC amounts.

(e)	Presented as of period-end.

Page 6


THE PNC FINANCIAL SERVICES GROUP, INC.

BlackRock (Unaudited) (a)


*Three months ended* *Taxable-equivalent basis (a)* *Dollars in millions except as noted*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
INCOME STATEMENT
Investment advisory and administrative fees	$	350		$	320		$	255		$	231		$	212
Other income		46			49			46			40			38

Total revenue		396			369			301			271			250
Operating expense		286			245			208			179			175
Fund administration and servicing costs		10			11			13			10			9

Total expense		296			256			221			189			184

Operating income		100			113			80			82			66
Nonoperating income		14			6			19			5			8

Pretax earnings		114			119			99			87			74
Minority interest		1			1			1			1
Income taxes		42			45			37			33			27

Earnings	$	71		$	73		$	61		$	53		$	47

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	492		$	484		$	492		$	500		$	444
Other assets		1,349			1,364			1,181			1,063			1,050

Total assets	$	1,841		$	1,848		$	1,673		$	1,563		$	1,494

Liabilities and minority interest	$	852		$	926		$	806		$	709		$	648
Stockholders’ equity		989			922			867			854			846

Total liabilities and stockholders’ equity	$	1,841		$	1,848		$	1,673		$	1,563		$	1,494

PERFORMANCE DATA
Return on average equity		30	%		32	%		28	%		25	%		24	%
Operating margin (b)		41			36			35			37			38
Diluted earnings per share	$	1.06		$	1.09		$	.92		$	.80		$	.70

ASSETS UNDER MANAGEMENT (in billions) (at period end)
Separate accounts
Fixed income	$	284		$	280		$	265		$	258		$	240
Cash management		10			7			8			8			7
Cash management - securities lending		8			5			6			7			7
Equity		23			21			20			19			19
Alternative investment products		27			25			25			23			19

Total separate accounts		352			338			324			315			292
Mutual funds (c)
Fixed income		24			25			25			26			25
Cash management		69			74			63			60			60
Equity		18			16			16			13			14

Total mutual funds		111			115			104			99			99

Total assets under management	$	463		$	453		$	428		$	414		$	391

OTHER INFORMATION
Period-end full-time headcount		2,232			2,151			2,145			2,141			1,999

(a)	See notes (a) and (b) on page 3.

(b)

Calculated as operating income excluding, net of tax, State Street Research and Management (SSRM) payments, the LTIP expense, SSRM acquisition costs, Merrill Lynch Investment Management (MLIM) acquisition costs, and appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plan divided by total revenue less, net of tax, 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, GAAP basis	$	100		$	113		$	80		$	82		$	66
Add back: SSRM payment		34
Add back: LTIP expense		14			15			14			16			14
Less: portion of LTIP to be funded by BlackRock		(2	)		(2	)		(2	)		(4	)		(2	)
Add back: SSRM acquisition costs														9
Add back: MLIM acquisition costs		6
Add back: Appreciation on assets related to deferred compensation plans		5						8						2

Operating income, as adjusted	$	157		$	126		$	100		$	94		$	89

Total revenue, GAAP basis	$	396		$	369		$	301		$	271		$	250
Less: reimbursable property management compensation		6			6			7			6			4
Less: fund administration and servicing costs		10			12			12			10			9

Revenue used for operating margin calculation, as reported	$	380		$	351		$	282		$	255		$	237

Operating margin, GAAP basis		25	%		31	%		27	%		30	%		26	%
Operating margin, as adjusted		41	%		36	%		35	%		37	%		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. As such, we believe operating margin, as adjusted, provides useful disclosure to investors. The 2006 SSRM payment was excluded because it represents a non-recurring payment (based on a performance fee) pursuant to the SSRM acquisition agreement. 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 potential impact related to LTIP participants’ put options, these charges will not impact BlackRock’s book value. SSRM acquisition costs consist of certain compensation costs and professional fees incurred in 2005. Compensation expense 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, net of the related impact on compensation expense, results in a nominal impact on net income. MLIM acquisition costs consist of certain professional fees incurred in 2006. 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.

(c)	Includes BlackRock Funds, BlackRock Liquidity Funds, BlackRock Closed-End Funds, PNC Investment Contract Fund and BlackRock Global Series Funds.

Page 7


THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


*Three months ended* *Dollars in millions except as noted*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
INCOME STATEMENT
Fund servicing revenue	$	227		$	217		$	221		$	221		$	220
Other revenue														10

Total revenue		227			217			221			221			230
Operating expense		170			161			168			169			173
Amortization of other intangibles, net		3			4			3			4			3

Total expense		173			165			171			173			176

Operating income		54			52			50			48			54
Debt financing		10			10			10			10			8
Net nonoperating income (expense)		1			2						1			(8	)

Pretax earnings		45			44			40			39			38
Income taxes		18			15			12			15			15

Earnings	$	27		$	29		$	28		$	24		$	23

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,022		$	1,025		$	1,029		$	1,009		$	1,012
Other assets		1,363			1,103			1,053			1,074			896

Total assets	$	2,385		$	2,128		$	2,082		$	2,083		$	1,908

Debt financing	$	890		$	890		$	939		$	987		$	1,017
Other liabilities		1,094			864			799			778			598
Shareholder’s equity		401			374			344			318			293

Total funds	$	2,385		$	2,128		$	2,082		$	2,083		$	1,908

PERFORMANCE RATIOS
Return on average equity		28	%		32	%		34	%		31	%		33	%
Operating margin (b)		24			24			23			22			23

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)(c)
Domestic	$	665		$	754		$	726		$	699		$	680
Offshore		85			81			67			67			65

Total	$	750		$	835		$	793		$	766		$	745

Asset type (in billions)
Money market	$	238		$	361		$	333		$	333		$	340
Equity		338			305			284			262			245
Fixed income		107			104			114			111			107
Other		67			65			62			60			53

Total	$	750		$	835		$	793		$	766		$	745

Custody fund assets (in billions)	$	383		$	476		$	475		$	462		$	462

Shareholder accounts (in millions)
Transfer agency		20			19			19			20			20
Subaccounting		45			43			40			38			39

Total		65			62			59			58			59

OTHER INFORMATION
Period-end full-time headcount		4,291			4,391			4,457			4,599			4,549

(a)	See notes (a) and (b) on page 3.

(b)	Operating income divided by total revenue.

(c)	Includes alternative investment net assets serviced.

Page 8


THE PNC FINANCIAL SERVICES GROUP, INC.

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

Taxable-

equivalent basis


	Quarter ended
Net Interest Income In millions	March 31 2006		December 31 2005		September 30 2005		June 30 2005		March 31 2005
Interest income
Loans	$	750	$	730	$	721	$	649	$	580
Securities available for sale and held to maturity		244		234		219		199		173
Other		79		83		62		60		57

Total interest income		1,073		1,047		1,002		908		810

Interest expense
Deposits		327		305		270		224		182
Borrowed funds		183		174		166		143		116

Total interest expense		510		479		436		367		298

Net interest income (a)	$	563	$	568	$	566	$	541	$	512

(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
*In millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Net interest income, GAAP basis	$	556		$	555		$	559		$	534		$	506
Taxable-equivalent adjustment		7			13			7			7			6

Net interest income, taxable-equivalent basis	$	563		$	568		$	566		$	541		$	512


	Quarter ended
Net Interest Margin	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Average yields/rates
Yield on interest-earning assets
Loans		6.14	%		5.91	%		5.75	%		5.48	%		5.30	%
Securities available for sale and held to maturity		4.66			4.49			4.29			4.21			4.10
Other		5.04			5.00			4.15			4.11			3.22
Total yield on interest-earning assets		5.64			5.44			5.23			5.03			4.79
Rate on interest-bearing liabilities
Deposits		2.81			2.58			2.33			2.05			1.80
Borrowed funds		4.65			4.23			3.79			3.48			3.09
Total rate on interest-bearing liabilities		3.27			3.01			2.73			2.44			2.15

Interest rate spread		2.37			2.43			2.50			2.59			2.64
Impact of noninterest-bearing sources		.58			.53			.46			.41			.38

Net interest margin		2.95	%		2.96	%		2.96	%		3.00	%		3.02	%


Trading Revenue (b) *In millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Net interest income				$	2		$	1		$	4		$	2
Noninterest income	$	57			49			47			11			50

Total trading revenue	$	57		$	51		$	48		$	15		$	52

Securities underwriting and trading	$	4		$	7		$	2		$	5		$	5
Foreign exchange		14			12			10			9			8
Financial derivatives		39			32			36			1			39

Total trading revenue	$	57		$	51		$	48		$	15		$	52

(b)	See pages 11-12 for disclosure of average trading assets and liabilities.

Page 9


THE PNC FINANCIAL SERVICES GROUP, INC.

Efficiency Ratios (Unaudited)


	Quarter ended
GAAP and Bank Efficiency Ratios	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
GAAP basis efficiency ratio (a)		67	%		67	%		69	%		71	%		68	%
Bank efficiency ratio (b)		63	%		64	%		67	%		69	%		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
*Dollars in millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
PNC total revenue, GAAP basis	$	1,741		$	1,709		$	1,675		$	1,463		$	1,480
Less: BlackRock revenue (c)		409			373			320			275			258
PFPC revenue (c)		218			209			211			212			214

Revenue, as adjusted	$	1,114		$	1,127		$	1,144		$	976		$	1,008

PNC noninterest expense, GAAP basis	$	1,171		$	1,145		$	1,159		$	1,040		$	1,000
Less: BlackRock noninterest expense		296			256			221			189			184
PFPC noninterest expense (c)		173			165			171			173			176

Noninterest expense, as adjusted	$	702		$	724		$	767		$	678		$	640
__________
(c) These amounts differ from amounts included on pages 7 and 8 of this financial supplement due to the presentation on pages 7 and 8 of BlackRock revenue on a taxable-equivalent basis and classification differences related to BlackRock and PFPC. Note 21 Segment Reporting in our 2005 Annual Report on Form 10-K provides further details on these differences.
	Quarter ended
Retail Banking Efficiency Ratios	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Efficiency, GAAP basis (a)		58	%		57	%		60	%		61	%		62	%
Efficiency, as adjusted (b)		56	%		55	%		58	%		59	%		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
*Dollars in millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Revenue, GAAP basis	$	753		$	755		$	740		$	710		$	663
Less: Hilliard Lyons		56			48			50			51			49

Revenue, as adjusted	$	697		$	707		$	690		$	659		$	614

Noninterest expense, GAAP basis	$	436		$	434		$	444		$	436		$	412
Less: Hilliard Lyons		45			44			44			46			44

Noninterest expense, as adjusted	$	391		$	390		$	400		$	390		$	368

Page 10


THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


*Three months ended - in millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Assets
Interest-earning assets
Securities available for sale and held to maturity
Securities available for sale
Mortgage-backed, asset-backed, and other debt	$	13,007		$	12,541		$	12,154		$	11,138		$	9,631
U.S. Treasury and government agencies/corporations		7,527			7,952			7,960			7,406			6,897
State and municipal		156			161			167			171			172
Corporate stocks and other		216			163			167			190			172

Total securities available for sale		20,906			20,817			20,448			18,905			16,872
Securities held to maturity											1

Total securities available for sale and held to maturity (a)		20,906			20,817			20,448			18,906			16,872
Loans, net of unearned income
Commercial		19,556			19,130			19,685			19,259			17,935
Commercial real estate		3,021			2,983			2,947			2,478			2,015
Consumer		16,184			16,310			16,673			16,195			15,641
Residential mortgage		7,272			7,175			6,739			5,742			4,855
Lease financing		2,769			2,821			2,937			2,978			3,041
Other		344			364			469			484			495

Total loans, net of unearned income (a)		49,146			48,783			49,450			47,136			43,982
Loans held for sale		2,745			2,715			2,390			2,152			1,941
Federal funds sold and resale agreements		488			643			423			649			2,249
Other		3,147			3,248			3,046			3,098			2,937

Total interest-earning assets		76,432			76,206			75,757			71,941			67,981
Noninterest-earning assets
Allowance for loan and lease losses		(600	)		(628	)		(634	)		(655	)		(611	)
Cash and due from banks		3,187			3,325			3,233			3,106			2,987
Other		13,110			13,167			12,720			13,167			13,005

Total assets (a)	$	92,129		$	92,070		$	91,076		$	87,559		$	83,362

Supplemental Average Balance Sheet Information
Loans excluding conduit	$	49,146		$	48,353		$	47,351		$	45,097		$	41,871
Market Street conduit (a)					430			2,099			2,039			2,111

Total loans (a)	$	49,146		$	48,783		$	49,450		$	47,136		$	43,982

Trading Assets
Securities (b)	$	1,797		$	1,852		$	1,734		$	1,932		$	1,883
Resale agreements (c)		321			593			411			411			1,249
Financial derivatives (d)		908			849			695			864			679

Total trading assets	$	3,026		$	3,294		$	2,840		$	3,207		$	3,811

(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. 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” above.

Page 11


THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


*Three months ended - in millions*	March 31 2006		December 31 2005		September 30 2005		June 30 2005		March 31 2005
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	18,482	$	19,194	$	18,447	$	17,482	$	16,562
Demand		8,304		8,378		8,343		8,205		7,965
Savings		2,250		2,377		2,589		2,787		2,831
Retail certificates of deposit		13,243		12,804		12,143		11,215		10,296
Other time		1,309		1,527		2,306		1,484		902
Time deposits in foreign offices		3,396		2,482		2,061		2,477		2,373

Total interest-bearing deposits		46,984		46,762		45,889		43,650		40,929
Borrowed funds
Federal funds purchased		2,594		2,518		1,704		2,506		1,659
Repurchase agreements		2,307		1,915		2,137		2,405		2,306
Bank notes and senior debt		3,824		3,558		3,271		3,288		2,663
Subordinated debt		4,437		4,438		3,996		3,826		3,911
Commercial paper (a)		219		798		3,316		2,438		2,344
Other		2,380		2,960		2,790		1,867		2,159

Total borrowed funds		15,761		16,187		17,214		16,330		15,042

Total interest-bearing liabilities		62,745		62,949		63,103		59,980		55,971
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity
Demand and other noninterest-bearing deposits		13,966		14,057		13,738		12,987		12,432
Allowance for unfunded loan commitments and letters of credit		101		80		84		78		76
Accrued expenses and other liabilities		6,106		6,049		5,408		6,095		6,856
Minority and noncontrolling interests in consolidated entities		589		599		518		526		527
Shareholders’ equity		8,622		8,336		8,225		7,893		7,500

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	92,129	$	92,070	$	91,076	$	87,559	$	83,362

Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	46,984	$	46,762	$	45,889	$	43,650	$	40,929
Demand and other noninterest-bearing deposits		13,966		14,057		13,738		12,987		12,432

Total deposits	$	60,950	$	60,819	$	59,627	$	56,637	$	53,361
Transaction deposits	$	40,752	$	41,629	$	40,528	$	38,674	$	36,959
Market Street commercial paper (a)			$	514	$	2,553	$	2,167	$	2,125
Common shareholders’ equity	$	8,615	$	8,328	$	8,217	$	7,885	$	7,492

Trading Liabilities
Securities sold short (b)	$	663	$	961	$	806	$	750	$	1,462
Repurchase agreements and other borrowings (c)		886		985		933		1,078		1,185
Financial derivatives (d)		901		908		814		909		667

Total trading liabilities	$	2,450	$	2,854	$	2,553	$	2,737	$	3,314

(a)	See note (a) on page 11.

(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.

Page 12


THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans and Lending Statistics (Unaudited)

Loans


*Period ended - in millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Commercial
Retail/wholesale	$	4,962		$	4,854		$	5,114		$	5,295		$	5,236
Manufacturing		4,113			4,045			4,321			4,498			4,327
Other service providers		2,114			1,986			2,173			2,198			1,820
Real estate related		2,845			2,577			2,492			2,520			2,179
Financial services		1,561			1,438			1,297			1,374			1,308
Health care		651			616			608			671			560
Other		3,681			3,809			4,098			3,447			3,043

Total commercial		19,927			19,325			20,103			20,003			18,473

Commercial real estate
Real estate projects		2,325			2,244			2,147			2,030			1,404
Mortgage		721			918			779			806			521

Total commercial real estate		3,046			3,162			2,926			2,836			1,925

Equipment lease financing		3,558			3,628			3,721			3,668			3,719

Total commercial lending		26,531			26,115			26,750			26,507			24,117

Consumer
Home equity		13,787			13,790			13,722			13,531			12,968
Automobile		958			938			931			874			854
Other		1,363			1,445			2,232			2,165			1,953

Total consumer		16,108			16,173			16,885			16,570			15,775

Residential mortgage		7,362			7,307			7,156			6,508			5,007
Vehicle lease financing								101			124			158
Other		352			341			474			455			489
Unearned income		(832	)		(835	)		(856	)		(847	)		(872	)

Total, net of unearned income (a)	$	49,521		$	49,101		$	50,510		$	49,317		$	44,674

Supplemental Loan Information
Loans excluding conduit	$	49,521		$	49,101		$	47,889		$	47,125		$	42,479
Market Street conduit (a)								2,621			2,192			2,195

Total loans (a)	$	49,521		$	49,101		$	50,510		$	49,317		$	44,674


	March 31 2006			March 31 2005
Commercial Lending Exposure (b)(c)
Investment grade or equivalent		47	%		47	%
Non-investment grade
$50 million or greater		2	%		2	%
All other non-investment grade		51	%		51	%

Total		100	%		100	%

(a)	See note (a) on page 11.

(b)	Includes all commercial loans in the Retail Banking and Corporate & Institutional Banking business segments other than the loans of Market Street. 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.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and Net Unfunded Commitments (Unaudited)

Change in Allowance for Loan and Lease Losses


*Three months ended - in millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Beginning balance	$	596		$	634		$	628		$	600		$	607
Charge-offs
Commercial		(16	)		(8	)		(16	)		(16	)		(12	)
Commercial real estate					(1	)
Equipment lease financing					(29	)
Consumer		(12	)		(12	)		(12	)		(11	)		(10	)
Residential mortgage					(1	)					(1	)

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

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

Total net recoveries (charge-offs) (a)		(18	)		(41	)		(15	)		38			(12	)
Provision for (recoveries of) credit losses		22			24			16			(27	)		8
Acquired allowance - Riggs											23
Net change in allowance for unfunded loan commitments and letters of credit		(3	)		(21	)		5			(6	)		(3	)

Ending balance	$	597		$	596		$	634		$	628		$	600

Supplemental Information
Commercial lending net recoveries (charge-offs) (a) (b)	$	(10	)	$	(32	)	$	(7	)	$	47		$	(6	)
Consumer lending net recoveries (charge-offs) (c)		(8	)		(9	)		(8	)		(9	)		(6	)

Total net recoveries (charge-offs) (a)	$	(18	)	$	(41	)	$	(15	)	$	38		$	(12	)
Net charge-offs to average loans
Commercial lending		.16	%		.51	%		.11	%		(.73	)%		.11	%
Consumer lending		.14			.15			.14			.15			.14

___________
(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*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Beginning balance	$	100		$	79		$	84		$	78		$	75
Net change in allowance for unfunded loan commitments and letters of credit		3			21			(5	)		6			3

Ending balance	$	103		$	100		$	79		$	84		$	78


Net Unfunded Commitments *In millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Net unfunded commitments (d)	$	40,806		$	40,178		$	35,261		$	33,925		$	30,237

(d)	Balances at March 31, 2006 and December 31, 2005 reflect 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.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*Period ended - in millions*	March 31 2006			December 31 2005			September 30 2005			June 30 2005			March 31 2005
Nonaccrual loans
Commercial	$	127		$	134		$	86		$	88		$	83
Commercial real estate		13			14			11			11			11
Equipment lease financing		16			17			3			4			5
Consumer		11			10			11			10			13
Residential mortgage		15			15			16			19			19

Total nonaccrual loans		182			190			127			132			131
Nonperforming loans held for sale (a)		1			1			1			2			2
Foreclosed and other assets
Equipment lease financing		13			13			13			13			13
Residential mortgage		8			9			11			13			11
Other		3			3			4			4			5

Total foreclosed and other assets		24			25			28			30			29

Total nonperforming assets (b)	$	207		$	216		$	156		$	164		$	162

Nonperforming loans to total loans		.37	%		.39	%		.25	%		.27	%		.29	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.40			.42			.29			.32			.35
Nonperforming assets to total assets		.22			.23			.17			.18			.19

____________
(a) Includes troubled debt restructured loans held for sale.	$	1		$	1		$	1		$	2		$	2
(b) Excludes equity management assets carried at estimated fair value (March 31, 2006, December 31, 2005, September 30, 2005, June 30, 2005, and March 31, 2005 amounts include troubled debt restructured assets of $7 million, $7 million, $16 million, $15 million, and $10 million, respectively).	$	21		$	25		$	27		$	31		$	33

Change in Nonperforming Assets
*In millions*	Quarter ended
January 1, 2006	$	216
Transferred from accrual		50
Returned to performing		(3	)
Principal activity including payoffs		(35	)
Asset sales		(5	)
Charge-offs and valuation adjustments		(16	)

March 31, 2006	$	207

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business


*Period ended - in millions*	March 31 2006		December 31 2005		September 30 2005		June 30 2005		March 31 2005
Retail Banking
Nonperforming loans	$	84	$	81	$	78	$	74	$	83
Foreclosed and other assets		9		9		9		10		10

Total	$	93	$	90	$	87	$	84	$	93

Corporate & Institutional Banking
Nonperforming loans	$	97	$	108	$	48	$	57	$	46
Nonperforming loans held for sale		1		1		1		2		2
Foreclosed and other assets		14		15		18		18		17

Total	$	112	$	124	$	67	$	77	$	65

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

Total	$	2	$	2	$	2	$	3	$	4

Consolidated Totals
Nonperforming loans	$	182	$	190	$	127	$	132	$	131
Nonperforming loans held for sale		1		1		1		2		2
Foreclosed and other assets		24		25		28		30		29

Total	$	207	$	216	$	156	$	164	$	162

Largest Nonperforming Assets at March 31, 2006 – in millions (b)


Ranking	Outstandings			Industry
1	$	18		Food Mfg.
2		16		Transportation Equipment Mfg.
3		13		Air Transportation
4		13		Air Transportation
5		12		Computer and Electronic Product Mfg.
6		7		Fabricated Metal Product Mfg.
7		6		Real Estate
8		4		Construction of Buildings
9		4		Private Households
10		3		Professional, Scientific, and Technical

Total	$	96

As a percent of nonperforming assets
		46	%

(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.

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Glossary of Terms

Accounting/administration net fund assets - Net domestic and foreign fund investment assets for which we provide accounting and administration services. We do not include these assets on our Consolidated Balance Sheet.

Adjusted average total assets - Primarily comprised of total average quarterly (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.

Basis point - One hundredth of a percentage point.

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 its 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 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 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. 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.

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

Funds transfer pricing - A management accounting methodology designed to recognize the net interest income effects of sources and uses of funds provided by the assets and liabilities of business segments. These balances are assigned funding rates that represent the interest cost for 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, equipment 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 equity 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 interest-earning assets,

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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.

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.

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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 within our primary geographic area. Our customers are serviced primarily through approximately 850 offices in our branch network, the call center located in Pittsburgh and the Internet – www.pncbank.com. The branch network is located primarily 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 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 products and services include foreign exchange, derivatives, loan syndications, mergers and acquisitions advisory and related services to middle-market companies, securities underwriting, and securities sales and trading. Corporate & Institutional Banking also provides commercial loan servicing, real estate advisory and technology solutions for the commercial real estate finance industry. Corporate & Institutional Banking provides products and services generally within our 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 with approximately $463 billion of assets under management at March 31, 2006. BlackRock provides diversified investment management services to institutional and individual investors worldwide through a variety of fixed income, cash management, equity, and alternative investment products. Mutual funds include the flagship fund families, BlackRock Funds and BlackRock Liquidity Funds. In addition, BlackRock provides risk management, investment system outsourcing and financial advisory services to institutional investors under the BlackRock Solutions^® brand name.

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

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