Financial Supplement (unaudited) for Second Quarter 2006

EXHIBIT 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2006

UNAUDITED

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND 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 Period-end Employees		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 July 19, 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*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Interest Income
Loans	$	797		$	747		$	727		$	718		$	646
Securities available for sale and held to maturity		255			243			233			219			198
Other		74			76			74			58			57

Total interest income		1,126			1,066			1,034			995			901

Interest Expense
Deposits		379			327			305			270			224
Borrowed funds		191			183			174			166			143

Total interest expense		570			510			479			436			367

Net interest income		556			556			555			559			534
Provision for (recoveries of) credit losses		44			22			24			16			(27	)

Net interest income less provision for (recoveries of) credit losses		512			534			531			543			561

Noninterest Income
Asset management		429			461			431			364			334
Fund servicing		210			221			213			218			219
Service charges on deposits		80			73			74			73			67
Brokerage		63			59			57			56			57
Consumer services		94			89			80			76			73
Corporate services		157			135			143			121			113
Equity management gains		54			7			16			36			12
Net securities losses		(8	)		(4	)		(4	)		(2	)		(26	)
Trading		55			57			49			47			11
Other		96			87			95			127			69

Total noninterest income		1,230			1,185			1,154			1,116			929

Noninterest Expense
Compensation		558			555			556			545			481
Employee benefits		76			87			77			86			86
Net occupancy		83			79			82			86			72
Equipment		80			77			75			73			74
Marketing		22			20			31			30			25
Other		330			353			324			339			302

Total noninterest expense		1,149			1,171			1,145			1,159			1,040

Income before minority and noncontrolling interests and income taxes		593			548			540			500			450
Minority and noncontrolling interests in income of consolidated entities		15			13			4			14			9
Income taxes		197			181			181			152			159

Net income	$	381		$	354		$	355		$	334		$	282

Earnings Per Common Share
Basic	$	1.30		$	1.21		$	1.22		$	1.16		$	.99
Diluted	$	1.28		$	1.19		$	1.20		$	1.14		$	.98

Average Common Shares Outstanding
Basic		293			292			290			289			285
Diluted		297			296			294			292			288

Noninterest income to total revenue		69	%		68	%		68	%		67	%		63	%

Effective tax rate		33.2	%		33.0	%		33.5	%		30.4	%		35.3	%

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Assets
Cash and due from banks	$	3,438		$	3,206		$	3,518		$	3,474		$	3,442
Federal funds sold and resale agreements		675			511			350			907			89
Other short-term investments, including trading securities		2,005			2,641			2,543			2,553			2,203
Loans held for sale		2,165			2,266			2,449			2,377			2,275
Securities available for sale and held to maturity		21,724			21,529			20,710			20,658			20,437
Loans, net of unearned income of $828, $832, $835, $856, and $847		50,548			49,521			49,101			50,510			49,317
Allowance for loan and lease losses		(611	)		(597	)		(596	)		(634	)		(628	)

Net loans		49,937			48,924			48,505			49,876			48,689
Goodwill		3,636			3,638			3,619			3,470			3,418
Other intangible assets		862			844			847			755			752
Other		10,472			9,698			9,413			9,171			9,489

Total assets	$	94,914		$	93,257		$	91,954		$	93,241		$	90,794

Liabilities
Deposits
Noninterest-bearing	$	14,434		$	14,250		$	14,988		$	14,099		$	13,751
Interest-bearing		49,059			46,649			45,287			46,115			44,922

Total deposits		63,493			60,899			60,275			60,214			58,673
Borrowed funds
Federal funds purchased		3,320			3,156			4,128			1,477			2,701
Repurchase agreements		2,136			2,892			1,691			2,054			2,042
Bank notes and senior debt		3,503			3,362			3,875			3,475			2,920
Subordinated debt		4,329			4,387			4,469			4,506			4,105
Commercial paper		10			120			10			3,447			3,998
Other		2,353			2,523			2,724			3,415			2,440

Total borrowed funds		15,651			16,440			16,897			18,374			18,206
Allowance for unfunded loan commitments and letters of credit		103			103			100			79			84
Accrued expenses		2,635			2,585			2,770			2,637			2,358
Other		3,573			3,822			2,759			3,025			2,723

Total liabilities		85,455			83,849			82,801			84,329			82,044

Minority and noncontrolling interests in consolidated entities		632			627			590			595			507

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		1,385			1,349			1,358			1,358			1,353
Retained earnings		9,449			9,230			9,023			8,814			8,626
Deferred compensation expense		(60	)		(44	)		(59	)		(64	)		(70	)
Accumulated other comprehensive loss		(510	)		(394	)		(267	)		(200	)		(41	)
Common stock held in treasury at cost: 58, 57, 60, 62, and 62 shares		(3,201	)		(3,124	)		(3,256	)		(3,355	)		(3,389	)

Total shareholders’ equity		8,827			8,781			8,563			8,317			8,243

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	94,914		$	93,257		$	91,954		$	93,241		$	90,794

CAPITAL RATIOS
Tier 1 risk-based (b)		8.8	%		8.8	%		8.3	%		8.4	%		8.3	%
Total risk-based (b)		12.4			12.5			12.1			12.5			11.9
Leverage (b)		7.7			7.6			7.2			7.1			7.2
Tangible common equity		5.2			5.2			5.0			4.9			5.0
Common shareholders’ equity to assets		9.3			9.4			9.3			8.9			9.1

ASSET QUALITY RATIOS
Nonperforming assets to loans, loans held for sale and foreclosed assets		.44	%		.40	%		.42	%		.29	%		.32	%
Nonperforming loans to loans		.41			.37			.39			.25			.27
Net charge-offs to average loans (For the three months ended) (c)		.24			.15			.33			.12			(.32	)
Allowance for loan and lease losses to loans		1.21			1.21			1.21			1.26			1.27
Allowance for loan and lease losses to nonperforming loans		294			328			314			499			476

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

(b)	Estimated for June 30, 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 Period-end Employees (Unaudited)


*Three months ended – dollars in millions* (a)	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Earnings
Retail Banking	$	185		$	190		$	195		$	176		$	162
Corporate & Institutional Banking		116			105			108			118			144
BlackRock		63			71			73			61			53
PFPC		26			27			29			28			24

Total business segment earnings		390			393			405			383			383
Minority interest in income of BlackRock		(19	)		(22	)		(22	)		(19	)		(16	)
Other		10			(17	)		(28	)		(30	)		(85	)

Total consolidated net income	$	381		$	354		$	355		$	334		$	282

Revenue (b)
Retail Banking	$	782		$	753		$	755		$	740		$	710
Corporate & Institutional Banking		382			340			358			346			321
BlackRock (c)		365			410			375			320			276
PFPC (d)		208			218			209			211			212

Total business segment revenue		1,737			1,721			1,697			1,617			1,519
Other		55			27			25			65			(49	)

Total consolidated revenue	$	1,792		$	1,748		$	1,722		$	1,682		$	1,470

(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 also provide revenue on a taxable-equivalent basis by increasing 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):


	June 30 2006		March 31 2006		December 31 2005		September 30 2005		June 30 2005
Total consolidated revenue, book (GAAP) basis	$	1,786	$	1,741	$	1,709	$	1,675	$	1,463
Taxable-equivalent adjustment		6		7		13		7		7

Total consolidated revenue, taxable-equivalent basis	$	1,792	$	1,748	$	1,722	$	1,682	$	1,470

(c)	Amounts for BlackRock represent the sum of total operating revenue and nonoperating income.

(d)	Amounts for PFPC represent the sum of fund servicing revenue and net nonoperating income less debt financing costs.


	June 30 2006	March 31 2006	December 31 2005	September 30 2005	June 30 2005
Period-end Employees
Full-time employees
Retail Banking	9,674	9,725	9,679	9,891	10,079
Corporate & Institutional Banking	1,899	1,892	1,861	1,740	1,791
BlackRock	2,317	2,232	2,151	2,145	2,141
PFPC	4,314	4,291	4,391	4,457	4,599
Other
Operations & Technology	3,994	3,942	3,966	4,010	4,104
Staff Services	1,593	1,560	1,545	1,568	1,683

Total Other	5,587	5,502	5,511	5,578	5,787

Total full-time employees	23,791	23,642	23,593	23,811	24,397
Total part-time employees	2,241	2,003	1,755	1,558	1,477

Total employees	26,032	25,645	25,348	25,369	25,874

The period-end employee 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*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
INCOME STATEMENT
Net interest income	$	424		$	408		$	417		$	407		$	397
Noninterest income
Asset management		87			87			86			87			83
Service charges on deposits		77			71			72			71			65
Brokerage		59			58			54			54			56
Consumer services		88			86			78			72			68
Other		47			43			48			49			41

Total noninterest income		358			345			338			333			313

Total revenue		782			753			755			740			710
Provision for credit losses		28			9			9			14			15
Noninterest expense		455			436			434			444			436

Pretax earnings		299			308			312			282			259
Minority interest		5			4
Income taxes		109			114			117			106			97

Earnings	$	185		$	190		$	195		$	176		$	162

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	13,816		$	13,778		$	13,751		$	13,570		$	13,267
Indirect		1,019			987			980			952			917
Other consumer		1,202			1,248			1,264			1,205			1,171

Total consumer		16,037			16,013			15,995			15,727			15,355
Commercial		5,715			5,433			5,282			5,235			5,033
Floor plan		964			970			936			903			1,050
Residential mortgage		1,577			1,648			1,716			1,789			1,326
Other		248			236			244			247			269

Total loans		24,541			24,300			24,173			23,901			23,033
Goodwill		1,482			1,472			1,467			1,458			1,248
Loans held for sale		1,535			1,880			1,802			1,602			1,455
Other assets		1,725			1,717			1,598			1,585			1,482

Total assets	$	29,283		$	29,369		$	29,040		$	28,546		$	27,218

Deposits
Noninterest-bearing demand	$	7,908		$	7,777		$	7,925		$	7,891		$	7,529
Interest-bearing demand		7,950			8,025			8,095			8,044			7,929
Money market		14,697			14,644			14,399			14,042			13,175

Total transaction deposits		30,555			30,446			30,419			29,977			28,633
Savings		2,109			2,183			2,309			2,516			2,712
Certificates of deposit		13,560			13,115			12,671			11,996			11,107

Total deposits		46,224			45,744			45,399			44,489			42,452
Other liabilities		537			560			392			370			396
Capital		2,979			2,943			2,965			2,919			2,774

Total funds	$	49,740		$	49,247		$	48,756		$	47,778		$	45,622

PERFORMANCE RATIOS
Return on average capital		25	%		26	%		26	%		24	%		23	%
Noninterest income to total revenue		46			46			45			45			44
Efficiency, GAAP basis		58			58			57			60			61
Efficiency, as adjusted (b)		56			56			55			58			59

(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*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
OTHER INFORMATION (a)
Credit-related statistics:
Nonperforming assets	$	104		$	93		$	90		$	87		$	84
Net charge-offs	$	19		$	14		$	12		$	11		$	16
Annualized net charge-off ratio		.31	%		.23	%		.20	%		.18	%		.28	%

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

Checking-related statistics:
Retail Banking checking relationships		1,956,000			1,950,000			1,934,000			1,921,000			1,882,000
Consumer DDA households using online banking		897,000			880,000			855,000			830,000			793,000
% of consumer DDA households using online banking		51	%		50	%		49	%		48	%		47	%
Consumer DDA households using online bill payment		305,000			253,000			205,000			188,000			167,000
% of consumer DDA households using online bill payment		17	%		14	%		12	%		11	%		10	%

Small business deposits:
Noninterest-bearing demand	$	4,319		$	4,357		$	4,555		$	4,499		$	4,267
Interest-bearing demand		1,392			1,454			1,656			1,547			1,478
Money market		2,617			2,705			2,941			3,045			2,774
Certificates of deposit		574			553			530			410			353

Brokerage statistics:
Margin loans	$	194		$	205		$	217		$	223		$	218
Financial consultants (b)		775			783			779			784			789
Full service brokerage offices		100			100			100			99			98
Brokerage account assets (billions)	$	43		$	43		$	42		$	42		$	41

Other statistics:
Gains on sales of education loans (c)	$	7		$	4		$	4		$	11		$	3
Period-end full-time employees		9,674			9,725			9,679			9,891			10,079
Period-end part-time employees		1,526			1,373			1,117			934			832
ATMs		3,553			3,763			3,721			3,770			3,788
Branches (d)		846			846			839			830			827

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

Total	$	50		$	50		$	49		$	50		$	50

Asset Type
Equity	$	31		$	32		$	31		$	31		$	31
Fixed income		12			12			12			13			13
Liquidity/Other		7			6			6			6			6

Total	$	50		$	50		$	49		$	50		$	50

Nondiscretionary assets under administration
Personal	$	25		$	28		$	27		$	27		$	26
Institutional		60			59			57			58			59

Total	$	85		$	87		$	84		$	85		$	85

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

Total	$	85		$	87		$	84		$	85		$	85

(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*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
INCOME STATEMENT
Net interest income	$	173		$	175		$	184		$	194		$	183
Noninterest income
Corporate services		133			113			118			99			92
Other		76			52			56			53			46

Noninterest income		209			165			174			152			138

Total revenue		382			340			358			346			321
Provision for (recoveries of) credit losses		17			12			23			(1	)		(48	)
Noninterest expense		192			176			177			172			155

Pretax earnings		173			152			158			175			214
Income taxes		57			47			50			57			70

Earnings	$	116		$	105		$	108		$	118		$	144

AVERAGE BALANCE SHEET
Loans
Corporate (b)	$	9,981		$	9,685		$	9,829		$	11,436		$	10,940
Commercial real estate		2,760			2,643			2,620			2,580			2,139
Commercial - real estate related		2,484			2,454			2,219			2,155			2,105
Asset-based lending		4,452			4,252			4,227			4,227			4,303

Total loans (b)		19,677			19,034			18,895			20,398			19,487
Loans held for sale		875			866			923			789			694
Other assets		5,739			5,596			5,508			5,497			5,466

Total assets	$	26,291		$	25,496		$	25,326		$	26,684		$	25,647

Deposits	$	9,454		$	9,584		$	10,129		$	9,535		$	9,165
Commercial paper (c)								514			2,553			2,168
Other liabilities		3,722			3,439			3,405			3,280			3,472
Capital		2,027			1,945			1,787			1,743			1,671

Total funds	$	15,203		$	14,968		$	15,835		$	17,111		$	16,476

PERFORMANCE RATIOS
Return on average capital		23	%		22	%		24	%		27	%		35	%
Noninterest income to total revenue		55			49			49			44			43
Efficiency		50			52			49			50			48

COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	140		$	136		$	126		$	119		$	105
Acquisitions/additions		19			13			21			18			21
Repayments/transfers		(8	)		(9	)		(11	)		(11	)		(7	)

End of period	$	151		$	140		$	136		$	126		$	119

OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	106		$	102		$	105		$	105		$	103
Capital Markets	$	76		$	64		$	62		$	42		$	29
Midland Loan Services	$	42		$	42		$	41		$	39		$	32
Equipment Leasing	$	17		$	18		$	17		$	16		$	18
Total loans (e)	$	20,057		$	19,447		$	18,817		$	21,084		$	20,726
Nonperforming assets (e)	$	125		$	112		$	124		$	67		$	77
Net charge-offs (recoveries)	$	12		$	4		$	28		$	5		$	(54	)
Period-end full-time employees		1,899			1,892			1,861			1,740			1,791
Net gains on commercial mortgage loan sales	$	18		$	7		$	13		$	21		$	18
Net carrying amount of commercial mortgage servicing rights (e)	$	385		$	353		$	344		$	297		$	276

(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*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
INCOME STATEMENT
Investment advisory and administrative fees	$	313		$	350		$	320		$	255		$	231
Other income		47			46			49			46			40

Total operating revenue		360			396			369			301			271
Operating expense		253			286			245			208			179
Fund administration and servicing costs		11			10			11			13			10

Total expense		264			296			256			221			189

Operating income		96			100			113			80			82
Nonoperating income		5			14			6			19			5

Pretax earnings		101			114			119			99			87
Minority interest					1			1			1			1
Income taxes		38			42			45			37			33

Earnings	$	63		$	71		$	73		$	61		$	53

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	490		$	492		$	484		$	492		$	500
Other assets		1,434			1,349			1,364			1,181			1,063

Total assets	$	1,924		$	1,841		$	1,848		$	1,673		$	1,563

Liabilities and minority interest	$	883		$	852		$	926		$	806		$	709
Stockholders’ equity		1,041			989			922			867			854

Total liabilities and stockholders’ equity	$	1,924		$	1,841		$	1,848		$	1,673		$	1,563

PERFORMANCE DATA
Return on average equity		25	%		30	%		32	%		28	%		25	%
Operating margin (b)		27			25			31			27			30
Diluted earnings per share	$	.95		$	1.06		$	1.09		$	.92		$	.80

ASSETS UNDER MANAGEMENT (in billions) (at period end)
Separate accounts
Fixed income	$	283		$	284		$	280		$	265		$	258
Cash management		10			10			7			8			8
Cash management - securities lending		11			8			5			6			7
Equity		23			23			21			20			19
Alternative investment products		27			27			25			25			23

Total separate accounts		354			352			338			324			315

Mutual funds (c)
Fixed income		25			24			25			25			26
Cash management		67			69			74			63			60
Equity		18			18			16			16			13

Total mutual funds		110			111			115			104			99

Total assets under management	$	464		$	463		$	453		$	428		$	414

OTHER INFORMATION
Period-end full-time employees		2,317			2,232			2,151			2,145			2,141

___________
(a) See notes (a) and (b) on page 3.
(b) While BlackRock reports its financial results on a GAAP basis, management believes that in evaluating its results, it is also useful to review additional non-GAAP measures, including operating margin, as adjusted, which is calculated as operating income excluding, net of tax, State Street Research and Management (SSRM) fee-sharing payment, LTIP expense, Merrill Lynch Investment Management (MLIM) transaction costs, and appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans divided by total revenue less, net of tax, reimbursable property management compensation and fund administration and servicing costs. Management does not advocate that investors consider such non-GAAP financial measures in isolation from, or as a substitute for, financial information prepared in accordance with GAAP. 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	$	96		$	100		$	113		$	80		$	82
Add back: SSRM fee-sharing payment					34
Add back: LTIP expense		15			14			15			14			16
Less: portion of LTIP to be funded by BlackRock		(3	)		(2	)		(2	)		(2	)		(4	)
Add back: MLIM transaction costs		13			6
Add back: Appreciation on assets related to deferred compensation plans		1			5						8

Operating income, as adjusted	$	122		$	157		$	126		$	100		$	94

Total revenue, GAAP basis	$	360		$	396		$	369		$	301		$	271
Less: reimbursable property management compensation		5			6			6			7			6
Less: fund administration and servicing costs		11			10			12			12			10

Revenue used for operating margin calculation, as reported	$	344		$	380		$	351		$	282		$	255

Operating margin, GAAP basis		27	%		25	%		31	%		27	%		30	%
Operating margin, as adjusted		36	%		41	%		36	%		35	%		37	%

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 fee-sharing 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. 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 transaction costs consist of compensation costs and certain professional fees incurred in 2006 related to the pending MLIM transaction. We have excluded fund administration and servicing costs from the operating margin, as adjusted, calculation because BlackRock receives offsetting revenue and expense for these services. 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 plc.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


*Three months ended* *Dollars in millions except as noted*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
INCOME STATEMENT
Fund servicing revenue	$	218		$	227		$	217		$	221		$	221
Expenses
Operating expense		163			170			161			168			169
Amortization of other intangibles, net		4			3			4			3			4

Total expense		167			173			165			171			173

Operating income		51			54			52			50			48
Debt financing		11			10			10			10			10
Net nonoperating income		1			1			2						1

Pretax earnings		41			45			44			40			39
Income taxes		15			18			15			12			15

Earnings	$	26		$	27		$	29		$	28		$	24

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,018		$	1,022		$	1,025		$	1,029		$	1,009
Other assets		1,398			1,363			1,103			1,053			1,074

Total assets	$	2,416		$	2,385		$	2,128		$	2,082		$	2,083

Debt financing	$	852		$	890		$	890		$	939		$	987
Other liabilities		1,137			1,094			864			799			778
Shareholder’s equity		427			401			374			344			318

Total funds	$	2,416		$	2,385		$	2,128		$	2,082		$	2,083

PERFORMANCE RATIOS
Return on average equity		25	%		28	%		32	%		34	%		31	%
Operating margin (b)		23			24			24			23			22

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions) (c)
Domestic	$	671		$	665		$	754		$	726		$	699
Offshore		72			85			81			67			67

Total	$	743		$	750		$	835		$	793		$	766

Asset type (in billions)
Money market	$	247		$	238		$	361		$	333		$	333
Equity		317			338			305			284			262
Fixed income		110			107			104			114			111
Other		69			67			65			62			60

Total	$	743		$	750		$	835		$	793		$	766

Custody fund assets (in billions)	$	389		$	383		$	476		$	475		$	462

Shareholder accounts (in millions)
Transfer agency		18			20			19			19			20
Subaccounting		47			45			43			40			38

Total		65			65			62			59			58

OTHER INFORMATION
Period-end full-time employees		4,314			4,291			4,391			4,457			4,599

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

(b)	Operating income divided by fund servicing 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

Net Interest Income


	Quarter ended
*In millions*	June 30 2006		March 31 2006		December 31 2005		September 30 2005		June 30 2005
Interest income
Loans	$	801	$	750	$	730	$	721	$	649
Securities available for sale and held to maturity		255		244		234		219		199
Other		76		79		83		62		60

Total interest income		1,132		1,073		1,047		1,002		908

Interest expense
Deposits		379		327		305		270		224
Borrowed funds		191		183		174		166		143

Total interest expense		570		510		479		436		367

Net interest income (a)	$	562	$	563	$	568	$	566	$	541

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

Net interest income, taxable-equivalent basis	$	562		$	563		$	568		$	566		$	541


Net Interest Margin

	Quarter ended
	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Average yields/rates
Yield on interest-earning assets
Loans		6.38	%		6.14	%		5.91	%		5.75	%		5.48	%
Securities available for sale and held to maturity		4.76			4.66			4.49			4.29			4.21
Other		5.23			5.04			5.00			4.15			4.11
Total yield on interest-earning assets		5.84			5.64			5.44			5.23			5.03
Rate on interest-bearing liabilities
Deposits		3.11			2.81			2.58			2.33			2.05
Borrowed funds		5.06			4.65			4.23			3.79			3.48
Total rate on interest-bearing liabilities		3.56			3.27			3.01			2.73			2.44

Interest rate spread		2.28			2.37			2.43			2.50			2.59
Impact of noninterest-bearing sources		.62			.58			.53			.46			.41

Net interest margin		2.90	%		2.95	%		2.96	%		2.96	%		3.00	%


Trading Revenue (b)

	Quarter ended
*In millions*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Net interest income (expense)	$	(3	)				$	2		$	1		$	4
Noninterest income		55		$	57			49			47			11

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

Securities underwriting and trading (c)	$	2		$	4		$	7		$	2		$	5
Foreign exchange		17			14			12			10			9
Financial derivatives		33			39			32			36			1

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

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

(c)	Includes changes in fair value for certain loans accounted for at fair value. See page 11 for disclosure of average loans at fair value.

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

Efficiency

Ratios (Unaudited)

GAAP and Bank Efficiency Ratios


	Quarter ended
	June 30 2006		March 31 2006		December 31 2005		September 30 2005		June 30 2005
GAAP basis efficiency ratio (a)	64	%	67	%	67	%	69	%	71	%
Bank efficiency ratio (b)	59	%	63	%	64	%	67	%	69	%

(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 fund processing businesses.

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


	Quarter ended
*Dollars in millions*	June 30 2006		March 31 2006		December 31 2005		September 30 2005		June 30 2005
PNC total revenue, GAAP basis	$	1,786	$	1,741	$	1,709	$	1,675	$	1,463
Less: BlackRock revenue (c)		365		409		373		320		275
PFPC revenue (c)		208		218		209		211		212

Revenue, as adjusted	$	1,213	$	1,114	$	1,127	$	1,144	$	976

PNC noninterest expense, GAAP basis	$	1,149	$	1,171	$	1,145	$	1,159	$	1,040
Less: BlackRock noninterest expense		264		296		256		221		189
PFPC noninterest expense		167		173		165		171		173

Noninterest expense, as adjusted	$	718	$	702	$	724	$	767	$	678

(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 13 Segment Reporting in our first quarter 2006 Quarterly Report on Form 10-Q provides further details on these differences.

Retail Banking Efficiency Ratios


	Quarter ended
	June 30 2006		March 31 2006		December 31 2005		September 30 2005		June 30 2005
Efficiency, GAAP basis (a)	58	%	58	%	57	%	60	%	61	%
Efficiency, as adjusted (b)	56	%	56	%	55	%	58	%	59	%

(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 the adjusted Retail Banking efficiency ratio:


	Quarter ended
*Dollars in millions*	June 30 2006		March 31 2006		December 31 2005		September 30 2005		June 30 2005
Revenue, GAAP basis	$	782	$	753	$	755	$	740	$	710
Less: Hilliard Lyons		50		56		48		50		51

Revenue, as adjusted	$	732	$	697	$	707	$	690	$	659

Noninterest expense, GAAP basis	$	455	$	436	$	434	$	444	$	436
Less: Hilliard Lyons		45		45		44		44		46

Noninterest expense, as adjusted	$	410	$	391	$	390	$	400	$	390

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


*Three months ended - in millions*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Assets
Interest-earning assets
Securities available for sale and held to maturity
Mortgage-backed, asset-backed, and other debt	$	13,771		$	13,007		$	12,541		$	12,154		$	11,139
U.S. Treasury and government agencies/corporations		7,263			7,527			7,952			7,960			7,406
State and municipal		152			156			161			167			171
Corporate stocks and other		230			216			163			167			190

Total securities available for sale and held to maturity (a) (b)		21,416			20,906			20,817			20,448			18,906
Loans, net of unearned income
Commercial		20,348			19,556			19,130			19,685			19,259
Commercial real estate		3,071			3,021			2,983			2,947			2,478
Consumer		16,049			16,184			16,310			16,673			16,195
Residential mortgage		7,353			7,272			7,175			6,739			5,742
Lease financing		2,761			2,769			2,821			2,937			2,978
Other		354			344			364			469			484

Total loans, net of unearned income (a)		49,936			49,146			48,783			49,450			47,136
Loans held for sale		2,411			2,745			2,715			2,390			2,152
Federal funds sold and resale agreements		613			488			643			423			649
Other		2,795			3,147			3,248			3,046			3,098

Total interest-earning assets		77,171			76,432			76,206			75,757			71,941
Noninterest-earning assets
Allowance for loan and lease losses		(600	)		(600	)		(628	)		(634	)		(655	)
Cash and due from banks		3,140			3,187			3,325			3,233			3,106
Other		13,736			13,110			13,167			12,720			13,167

Total assets (a)	$	93,447		$	92,129		$	92,070		$	91,076		$	87,559

Supplemental Average Balance Sheet Information
Loans excluding conduit	$	49,936		$	49,146		$	48,353		$	47,351		$	45,097
Market Street conduit (a)								430			2,099			2,039

Total loans (a)	$	49,936		$	49,146		$	48,783		$	49,450		$	47,136

Trading Assets
Securities (c)	$	1,477		$	1,797		$	1,852		$	1,734		$	1,932
Resale agreements (d)		378			321			593			411			411
Financial derivatives (e)		1,251			908			849			695			864
Loans at fair value (e)		170

Total trading assets	$	3,276		$	3,026		$	3,294		$	2,840		$	3,207

(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)	Securities held to maturity totaled $1 million for the three months ended June 30, 2005 and are included in the “Mortgage-backed, asset-backed, and other debt” category above. Securities held to maturity totaled less than $.5 million for each of the other periods presented.

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

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

(e)	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*	June 30 2006		March 31 2006		December 31 2005		September 30 2005		June 30 2005
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	19,019	$	18,482	$	19,194	$	18,447	$	17,482
Demand		8,229		8,304		8,378		8,343		8,205
Savings		2,177		2,250		2,377		2,589		2,787
Retail certificates of deposit		13,686		13,243		12,804		12,143		11,215
Other time		1,323		1,309		1,527		2,306		1,484
Time deposits in foreign offices		4,276		3,396		2,482		2,061		2,477

Total interest-bearing deposits		48,710		46,984		46,762		45,889		43,650
Borrowed funds
Federal funds purchased		2,715		2,594		2,518		1,704		2,506
Repurchase agreements		2,226		2,307		1,915		2,137		2,405
Bank notes and senior debt		3,145		3,824		3,558		3,271		3,288
Subordinated debt		4,437		4,437		4,438		3,996		3,826
Commercial paper (a)		206		219		798		3,316		2,438
Other		2,298		2,380		2,960		2,790		1,867

Total borrowed funds		15,027		15,761		16,187		17,214		16,330

Total interest-bearing liabilities		63,737		62,745		62,949		63,103		59,980
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity
Demand and other noninterest-bearing deposits		13,926		13,966		14,057		13,738		12,987
Allowance for unfunded loan commitments and letters of credit		103		101		80		84		78
Accrued expenses and other liabilities		6,305		6,106		6,049		5,408		6,095
Minority and noncontrolling interests in consolidated entities		631		589		599		518		526
Shareholders’ equity		8,745		8,622		8,336		8,225		7,893

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	93,447	$	92,129	$	92,070	$	91,076	$	87,559

Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	48,710	$	46,984	$	46,762	$	45,889	$	43,650
Demand and other noninterest-bearing deposits		13,926		13,966		14,057		13,738		12,987

Total deposits	$	62,636	$	60,950	$	60,819	$	59,627	$	56,637
Transaction deposits	$	41,174	$	40,752	$	41,629	$	40,528	$	38,674
Market Street commercial paper (a)					$	514	$	2,553	$	2,167
Common shareholders’ equity	$	8,738	$	8,615	$	8,328	$	8,217	$	7,885

Trading Liabilities
Securities sold short (b)	$	769	$	663	$	961	$	806	$	750
Repurchase agreements and other borrowings (c)		641		886		985		933		1,078
Financial derivatives (d)		1,200		901		908		814		909
Borrowings at fair value (d)		48

Total trading liabilities	$	2,658	$	2,450	$	2,854	$	2,553	$	2,737

(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*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Commercial
Retail/wholesale	$	5,393		$	4,962		$	4,854		$	5,114		$	5,295
Manufacturing		4,164			4,113			4,045			4,321			4,498
Other service providers		2,179			2,114			1,986			2,173			2,198
Real estate related		2,903			2,845			2,577			2,492			2,520
Financial services		1,479			1,561			1,438			1,297			1,374
Health care		641			651			616			608			671
Other		3,805			3,681			3,809			4,098			3,447

Total commercial		20,564			19,927			19,325			20,103			20,003

Commercial real estate
Real estate projects		2,438			2,325			2,244			2,147			2,030
Mortgage		768			721			918			779			806

Total commercial real estate		3,206			3,046			3,162			2,926			2,836

Equipment lease financing		3,583			3,558			3,628			3,721			3,668

Total commercial lending		27,353			26,531			26,115			26,750			26,507

Consumer
Home equity		13,853			13,787			13,790			13,722			13,531
Automobile		1,008			958			938			931			874
Other		1,388			1,363			1,445			2,232			2,165

Total consumer		16,249			16,108			16,173			16,885			16,570

Residential mortgage		7,416			7,362			7,307			7,156			6,508
Other		358			352			341			575			579
Unearned income		(828	)		(832	)		(835	)		(856	)		(847	)

Total, net of unearned income (a)	$	50,548		$	49,521		$	49,101		$	50,510		$	49,317

Supplemental Loan Information
Loans excluding conduit	$	50,548		$	49,521		$	49,101		$	47,889		$	47,125
Market Street conduit (a)											2,621			2,192

Total loans (a)	$	50,548		$	49,521		$	49,101		$	50,510		$	49,317


	June 30 2006		June 30 2005
Commercial Lending Exposure (b)(c)
Investment grade or equivalent	48	%	49	%
Non-investment grade
$50 million or greater	2	%	2	%
All other non-investment grade	50	%	49	%

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.

Page 13

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*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Beginning balance	$	597		$	596		$	634		$	628		$	600
Charge-offs
Commercial		(30	)		(16	)		(8	)		(16	)		(16	)
Commercial real estate								(1	)
Equipment lease financing (a)								(29	)
Consumer		(12	)		(12	)		(12	)		(12	)		(11	)
Residential mortgage								(1	)					(1	)

Total charge-offs (a)		(42	)		(28	)		(51	)		(28	)		(28	)
Recoveries
Commercial (b)		4			6			6			8			62
Commercial real estate											1
Equipment lease financing		4												1
Consumer		4			4			4			4			3

Total recoveries (b)		12			10			10			13			66
Net recoveries (charge-offs)
Commercial (b)		(26	)		(10	)		(2	)		(8	)		46
Commercial real estate								(1	)		1
Equipment lease financing (a)		4						(29	)					1
Consumer		(8	)		(8	)		(8	)		(8	)		(8	)
Residential mortgage								(1	)					(1	)

Total net recoveries (charge-offs) (a) (b)		(30	)		(18	)		(41	)		(15	)		38
Provision for (recoveries of) credit losses		44			22			24			16			(27	)
Acquired allowance - Riggs														23
Net change in allowance for unfunded loan commitments and letters of credit					(3	)		(21	)		5			(6	)

Ending balance	$	611		$	597		$	596		$	634		$	628

Supplemental Information
Commercial lending net (charge-offs) recoveries (a) (b) (c)	$	(22	)	$	(10	)	$	(32	)	$	(7	)	$	47
Consumer lending net charge-offs (d)		(8	)		(8	)		(9	)		(8	)		(9	)

Total net (charge-offs) recoveries (a) (b)	$	(30	)	$	(18	)	$	(41	)	$	(15	)	$	38
Net charge-offs to average loans
Commercial lending		.34	%		.16	%		.51	%		.11	%		(.73	)%
Consumer lending		.14			.14			.15			.14			.15

(a)	Fourth quarter 2005 amounts reflect the impact of a charge-off related to a single leasing customer during that period.

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

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

(d)	Includes consumer and residential mortgage.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


*Three months ended - in millions*	June 30 2006		March 31 2006		December 31 2005		September 30 2005			June 30 2005
Beginning balance	$	103	$	100	$	79	$	84		$	78
Net change in allowance for unfunded loan commitments and letters of credit				3		21		(5	)		6

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


Net Unfunded Commitments

*In millions*	June 30 2006		March 31 2006		December 31 2005		September 30 2005			June 30 2005
Net unfunded commitments (e)	$	40,904	$	40,806	$	40,178	$	35,261		$	33,925

(e)	Balances at June 30, 2006, 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*	June 30 2006			March 31 2006			December 31 2005			September 30 2005			June 30 2005
Nonaccrual loans
Commercial	$	151		$	127		$	134		$	86		$	88
Commercial real estate		12			13			14			11			11
Equipment lease financing		16			16			17			3			4
Consumer		14			11			10			11			10
Residential mortgage		14			15			15			16			19

Total nonaccrual loans		207			182			190			127			132
Troubled debt restructured loan		1

Total nonperforming loans		208			182			190			127			132
Nonperforming loans held for sale (a)					1			1			1			2
Foreclosed and other assets
Equipment lease financing		12			13			13			13			13
Residential mortgage		8			8			9			11			13
Other		3			3			3			4			4

Total foreclosed and other assets		23			24			25			28			30

Total nonperforming assets (b)	$	231		$	207		$	216		$	156		$	164

Nonperforming loans to total loans		.41	%		.37	%		.39	%		.25	%		.27	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.44			.40			.42			.29			.32
Nonperforming assets to total assets		.24			.22			.23			.17			.18

______________
(a) Amounts represent troubled debt restructured loans held for sale.
(b) Excludes equity management assets carried at estimated fair value (amounts include troubled debt restructured assets of $7 million, $7 million, $7 million, $16 million and $15 million, respectively).	$	18		$	21		$	25		$	27		$	31

Change in Nonperforming Assets


*In millions*	Six months ended
January 1, 2006	$	216
Transferred from accrual		127
Returned to performing		(10	)
Principal activity including payoffs		(46	)
Asset sales		(11	)
Charge-offs and valuation adjustments		(45	)

June 30, 2006	$	231

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business


*Period ended - in millions*	June 30 2006		March 31 2006		December 31 2005		September 30 2005		June 30 2005
Retail Banking
Nonperforming loans	$	95	$	84	$	81	$	78	$	74
Foreclosed and other assets		9		9		9		9		10

Total	$	104	$	93	$	90	$	87	$	84

Corporate & Institutional Banking
Nonperforming loans	$	112	$	97	$	108	$	48	$	57
Nonperforming loans held for sale				1		1		1		2
Foreclosed and other assets		13		14		15		18		18

Total	$	125	$	112	$	124	$	67	$	77

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

Total	$	2	$	2	$	2	$	2	$	3

Consolidated Totals
Nonperforming loans	$	208	$	182	$	190	$	127	$	132
Nonperforming loans held for sale				1		1		1		2
Foreclosed and other assets		23		24		25		28		30

Total	$	231	$	207	$	216	$	156	$	164

Largest Nonperforming Assets at June 30, 2006 - in millions (b)


Ranking	Outstandings			Industry
1	$	16		Food Mfg.
2		15		Real Estate
3		15		Transportation Equipment Mfg.
4		14		Air Transportation
5		12		Air Transportation
6		12		Motion Picture and Sound Recording
7		12		Computer and Electronic Mfg.
8		7		Truck Transportation
9		6		Real Estate
10		5		Telecommunications

Total	$	114

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.

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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 our balance sheet because it is considered uncollectible. We also record a charge-off 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 - 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 our 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 our business segments 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 our target credit rating. As such, economic risk serves as a “common currency” of risk that allows us 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 our 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 our business segments. We assign these balances LIBOR-based funding rates at origination that represent the interest cost for us to raise/invest funds with similar maturity and repricing structures.

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, foreclosed assets and other assets. We do not accrue interest income 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, foreclosed assets or other assets. We do not accrue interest income 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 we had previously charged off. We credit the amount received 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 period-end assets less goodwill and other intangible assets (excluding mortgage servicing rights).

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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, we also provide revenue on a taxable-equivalent basis by increasing 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 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. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.

Page 19

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 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; the greater Washington, D.C. area, including Virginia and Maryland; Ohio; Kentucky and Delaware. 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, with certain products and services provided nationally.

BlackRock is one of the largest publicly traded investment management firms in the United States, with approximately $464 billion of assets under management at June 30, 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 a leading full service provider of processing, technology and business solutions for the global investment industry. Securities services include custody, securities lending and accounting and administration for funds registered under the 1940 Act and alternative investments. Investor services include transfer agency, managed accounts, subaccounting, and distribution. PFPC services $1.9 trillion in total assets and 65 million shareholder accounts as of June 30, 2006 both domestically and internationally through its Ireland and Luxembourg operations.

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