Financial Supplement

EXHIBIT 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2006

UNAUDITED

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2006

UNAUDITED


		Page
Consolidated Income Statement		1
Adjusted Condensed Consolidated Income Statement		2
Consolidated Income Statement Quarterly Trend		3
Adjusted Condensed Consolidated Income Statement Quarterly Trend		4
Consolidated Balance Sheet		5
Capital Ratios and Asset Quality Ratios		5
Results of Businesses
Summary of Business Results and Period-end Employees		6-7
Retail Banking		8-12
Corporate & Institutional Banking		13-14
PFPC		15-16
Efficiency Ratios		17
Details of Net Interest Income, Net Interest Margin, and Trading Revenue		18
Average Consolidated Balance Sheet and Supplemental Average Balance Sheet Information		19-22
Details of Loans and Lending Statistics		23
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters
of Credit and Net Unfunded Commitments		24
Details of Nonperforming Assets		25-26
Glossary of Terms		27-29
Business Segment Descriptions		30
Additional Information About The PNC/Mercantile Transaction		31

Appendix - Reconciliations of Certain Adjusted Amounts		A1-A4

The information contained in this Financial Supplement is preliminary, unaudited and based on data available at January 23, 2007. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our SEC filings.

BlackRock/MLIM Transaction

As further described in our Quarterly Report on Form 10-Q for the quarter ended September 30, 2006, BlackRock, Inc. ("BlackRock"), then a majority-owned subsidiary of The PNC Financial Services Group, Inc., and Merrill Lynch entered into a definitive agreement pursuant to which Merrill Lynch agreed to contribute its investment management business ("MLIM") to BlackRock in exchange for 65 million shares of newly issued BlackRock common and preferred stock. This transaction closed on September 29, 2006.

For the full years 2005 and 2004 and the quarters ended September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005 presented in this Financial Supplement, our Consolidated Income Statement reflects our former majority ownership interest in BlackRock. However, our Consolidated Income Statement for the quarter ended December 31, 2006 and our Consolidated Balance Sheet as of December 31, 2006 and September 30, 2006 reflects the deconsolidation of BlackRock's balance sheet amounts and recognizes our 34% ownership interest in BlackRock as of those dates and for that quarter as an investment accounted for under the equity method.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)


For the year ended December 31 - in millions, except per share data	2006			2005			2004
Interest Income
Loans	$	3,203		$	2,669		$	2,043
Securities available for sale and held to maturity		1,049			822			568
Other		360			243			141

Total interest income		4,612			3,734			2,752

Interest Expense
Deposits		1,590			981			484
Borrowed funds		777			599			299

Total interest expense		2,367			1,580			783

Net interest income		2,245			2,154			1,969
Provision for credit losses		124			21			52

Net interest income less provision for credit losses		2,121			2,133			1,917

Noninterest Income
Asset management		1,420			1,443			994
Fund servicing		893			870			817
Service charges on deposits		313			273			252
Brokerage		246			225			219
Consumer services		365			293			259
Corporate services		626			485			423
Equity management gains		107			96			67
Net securities gains (losses)		(207	)		(41	)		55
Trading		183			157			113
Net gains related to BlackRock		2,066
Other		315			372			373

Total noninterest income		6,327			4,173			3,572

Noninterest Expense
Compensation		2,128			2,061			1,755
Employee benefits		304			332			309
Net occupancy		310			313			267
Equipment		303			296			290
Marketing		104			106			87
Other		1,294			1,198			1,004

Total noninterest expense		4,443			4,306			3,712

Income before minority interest and income taxes		4,005			2,000			1,777
Minority interest in income of BlackRock		47			71			42
Income taxes		1,363			604			538

Net income	$	2,595		$	1,325		$	1,197

Earnings Per Common Share
Basic	$	8.89		$	4.63		$	4.25
Diluted	$	8.73		$	4.55		$	4.21

Average Common Shares Outstanding
Basic		292			286			281
Diluted		297			290			284

Efficiency		52	%		68	%		67	%

Noninterest income to total revenue		74	%		66	%		64	%

Effective tax rate (a)		34.0	%		30.2	%		30.3	%

(a)	The higher effective rate for 2006 was primarily due to the impact of the third quarter 2006 gain on the BlackRock/MLIM transaction and a $57 million cumulative adjustment to deferred taxes made in the same quarter in connection with that transaction.

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Adjusted Condensed Consolidated Income Statement (Unaudited) (a)


For the year ended December 31 - in millions	2006		2005
Net Interest Income
Interest income	$	4,596	$	3,714
Interest expense		2,361		1,572

Net interest income		2,235		2,142
Provision for credit losses		124		21

Net interest income less provision for credit losses		2,111		2,121

Noninterest Income
Asset management		538		463
Other		3,022		2,659

Total noninterest income		3,560		3,122

Noninterest Expense
Compensation and benefits		1,865		1,798
Other		1,722		1,655

Total noninterest expense		3,587		3,453

Income before income taxes		2,084		1,790
Income taxes		577		465

Net income	$	1,507	$	1,325

(a)

This schedule is provided for informational purposes only and reflects historical consolidated financial information of PNC (1) with amounts adjusted for the impact of certain significant 2006 items and (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented. See Appendix to Financial Supplement for reconciliations of these amounts to the corresponding GAAP amounts for each of the periods presented. We have provided these adjusted amounts and reconciliations so that shareholders, investor analysts, regulators and others will be better able to evaluate the impact of certain significant items on our GAAP results for these periods, in addition to providing a basis of comparability for the impact of BlackRock. This information supplements our results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, our GAAP results. The absence of other adjustments is not intended to imply that there could not have been other similar types of adjustments, but any such adjustments would not have been similar in magnitude to the amount of the adjustments shown. Our third quarter 2006 Form 10-Q includes additional information regarding our BlackRock/MLIM transaction accounting, securities portfolio rebalancing and mortgage loan portfolio repositioning.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement Quarterly Trend (Unaudited)


For the three months ended December 31 - in millions, except per share data	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
Interest Income
Loans	$	821		$	838		$	797		$	747		$	727
Securities available for sale and held to maturity		280			271			255			243			233
Other		116			94			74			76			74

Total interest income		1,217			1,203			1,126			1,066			1,034

Interest Expense
Deposits		450			434			379			327			305
Borrowed funds		201			202			191			183			174

Total interest expense		651			636			570			510			479

Net interest income		566			567			556			556			555
Provision for credit losses		42			16			44			22			24

Net interest income less provision for credit losses		524			551			512			534			531

Noninterest Income
Asset management		149			381			429			461			431
Fund servicing		249			213			210			221			213
Service charges on deposits		79			81			80			73			74
Brokerage		63			61			63			59			57
Consumer services		93			89			94			89			80
Corporate services		177			157			157			135			143
Equity management gains		25			21			54			7			16
Net securities losses					(195	)		(8	)		(4	)		(4	)
Trading		33			38			55			57			49
Gains (losses) related to BlackRock		(12	)		2,078
Other		113			19			96			87			95

Total noninterest income		969			2,943			1,230			1,185			1,154

Noninterest Expense
Compensation		442			573			558			555			556
Employee benefits		55			86			76			87			77
Net occupancy		69			79			83			79			82
Equipment		69			77			80			77			75
Marketing		23			39			22			20			31
Other		311			313			326			344			306

Total noninterest expense		969			1,167			1,145			1,162			1,127

Income before minority interest and income taxes		524			2,327			597			557			558
Minority interest in income of BlackRock					6			19			22			22
Income taxes		148			837			197			181			181

Net income	$	376		$	1,484		$	381		$	354		$	355

Earnings Per Common Share
Basic	$	1.29		$	5.09		$	1.30		$	1.21		$	1.22
Diluted	$	1.27		$	5.01		$	1.28		$	1.19		$	1.20

Average Common Shares Outstanding
Basic		291			291			293			292			290
Diluted		295			296			297			296			294

Efficiency		63	%		33	%		64	%		67	%		66	%

Noninterest income to total revenue		63	%		84	%		69	%		68	%		68	%

Effective tax rate (a)		28.2	%		36.0	%		33.0	%		32.5	%		32.4	%

(a)

The lower effective tax rate in the fourth quarter of 2006 reflects the impact of the deconsolidation of BlackRock effective September 29, 2006 and the impact of the reversal of $11 million of income tax reserves in that quarter. The higher effective rate for the third quarter of 2006 was primarily due to the impact of the gain on the BlackRock/MLIM transaction and a $57 million cumulative adjustment to deferred taxes made in the same quarter in connection with that transaction.

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Adjusted Condensed Consolidated Income Statement Quarterly Trend (Unaudited) (a)


	December 31		September 30		June 30		March 31		December 31
For the three months ended - in millions	2006		2006		2006		2006		2005
Net Interest Income
Interest income	$	1,217	$	1,198	$	1,120	$	1,061	$	1,027
Interest expense		651		634		568		508		477

Net interest income		566		564		552		553		550
Provision for credit losses		42		16		44		22		24

Net interest income less provision for credit losses		524		548		508		531		526

Noninterest Income
Asset management		159		122		129		128		128
Other		820		710		789		703		709

Total noninterest income		979		832		918		831		837

Noninterest Expense
Compensation and benefits		497		461		457		450		451
Other		472		411		424		415		419

Total noninterest expense		969		872		881		865		870

Income before income taxes		534		508		545		497		493
Income taxes		150		128		159		140		138

Net income	$	384	$	380	$	386	$	357	$	355

(a)

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


	December 31			September 30			June 30			March 31			December 31
In millions, except par value	2006			2006			2006			2006			2005
Assets
Cash and due from banks	$	3,523		$	3,018		$	3,438		$	3,206		$	3,518
Federal funds sold and resale agreements		1,763			2,818			675			511			350
Other short-term investments, including trading securities		3,130			2,718			2,005			2,641			2,543
Loans held for sale		2,366			4,317			2,165			2,266			2,449
Securities available for sale and held to maturity		23,191			19,512			21,724			21,529			20,710
Loans, net of unearned income of $795, $815, $828, $832, and $835		50,105			48,900			50,548			49,521			49,101
Allowance for loan and lease losses		(560	)		(566	)		(611	)		(597	)		(596	)

Net loans		49,545			48,334			49,937			48,924			48,505
Goodwill		3,402			3,418			3,636			3,638			3,619
Other intangible assets		641			590			862			844			847
Equity investments (a)		5,330			5,130			1,461			1,387			1,323
Other		8,929			8,581			9,011			8,311			8,090

Total assets	$	101,820		$	98,436		$	94,914		$	93,257		$	91,954

Liabilities
Deposits
Noninterest-bearing	$	16,070		$	14,840		$	14,434		$	14,250		$	14,988
Interest-bearing		50,231			49,732			49,059			46,649			45,287

Total deposits		66,301			64,572			63,493			60,899			60,275
Borrowed funds
Federal funds purchased		2,711			3,475			3,320			3,156			4,128
Repurchase agreements		2,051			2,275			2,136			2,892			1,691
Bank notes and senior debt		3,633			2,177			3,503			3,362			3,875
Subordinated debt		3,962			4,436			4,329			4,387			4,469
Other		2,671			2,332			2,363			2,643			2,734

Total borrowed funds		15,028			14,695			15,651			16,440			16,897
Allowance for unfunded loan commitments and letters of credit		120			117			103			103			100
Accrued expenses		3,970			3,855			2,635			2,585			2,770
Other		4,728			4,031			3,573			3,822			2,759

Total liabilities		90,147			87,270			85,455			83,849			82,801

Minority and noncontrolling interests in consolidated entities		885			408			632			627			590

Shareholders’ Equity
Preferred stock (b)
Common stock - $5 par value
Authorized 800 shares, issued 353 shares		1,764			1,764			1,764			1,764			1,764
Capital surplus		1,697			1,679			1,385			1,349			1,358
Retained earnings		10,985			10,771			9,449			9,230			9,023
Deferred compensation expense		(46	)		(51	)		(60	)		(44	)		(59	)
Accumulated other comprehensive loss		(235	)		(109	)		(510	)		(394	)		(267	)
Common stock held in treasury at cost: 60, 59, 58, 57, and 60 shares		(3,377	)		(3,296	)		(3,201	)		(3,124	)		(3,256	)

Total shareholders’ equity		10,788			10,758			8,827			8,781			8,563

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	101,820		$	98,436		$	94,914		$	93,257		$	91,954

CAPITAL RATIOS
Tier 1 risk-based (c)		10.4	%		10.4	%		8.8	%		8.8	%		8.3	%
Total risk-based (c)		13.5			13.6			12.4			12.5			12.1
Leverage (c)		9.3			9.4			7.7			7.6			7.2
Tangible common equity		7.4			7.5			5.2			5.2			5.0
Common shareholders’ equity to assets		10.6			10.9			9.3			9.4			9.3

ASSET QUALITY RATIOS
Nonperforming assets to loans, loans held for sale and foreclosed assets		.33	%		.36	%		.44	%		.40	%		.42	%
Nonperforming loans to loans		.29			.34			.41			.37			.39
Net charge-offs to average loans (For the three months ended)		.36			.37			.24			.15			.33
Allowance for loan and lease losses to loans		1.12			1.16			1.21			1.21			1.21
Allowance for loan and lease losses to nonperforming loans		381			339			294			328			314

(a)	Includes equity investment in BlackRock.

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

(c)	The ratios for December 31, 2006 are estimated.

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Results (Unaudited)


Year ended December 31 - in millions (a)	2006		2005
Earnings
Retail Banking	$	765	$	682
Corporate & Institutional Banking		463		480
BlackRock (b) (c)		187		152
PFPC		124		104

Total business segment earnings		1,539		1,418
Other (c) (d)		1,056		(93	)

Total consolidated net income	$	2,595	$	1,325

Revenue (e)
Retail Banking	$	3,125	$	2,868
Corporate & Institutional Banking		1,472		1,335
BlackRock (f)		1,170		1,229
PFPC (g)		879		846

Total business segment revenue		6,646		6,278
Other		1,951		82

Total consolidated revenue	$	8,597	$	6,360

(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)	These amounts have been reduced by minority interest in income of BlackRock, excluding MLIM integration costs, totaling $65 million and $71 million for the years ended December 31, 2006 and 2005, respectively.

(c)	For this PNC business segment reporting presentation, integration costs incurred by BlackRock for the MLIM transaction totaling $47 million for 2006 have been reclassified from BlackRock to “Other.” These amounts are after-tax and net of minority interest.

(d)	"Other" for 2006 also includes the after-tax impact of the following third quarter items: gain on the BlackRock/MLIM transaction, and costs associated with the securities portfolio rebalancing and mortgage loan portfolio repositioning.

(e)

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 earned 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):


	2006		2005
Total consolidated revenue, book (GAAP) basis	$	8,572	$	6,327
Taxable-equivalent adjustment		25		33

Total consolidated revenue, taxable-equivalent basis	$	8,597	$	6,360

(f)

For 2005 and the first nine months of 2006, amounts for BlackRock represent the sum of total operating revenue and nonoperating income. For the fourth quarter of 2006, revenue represents our equity income from BlackRock. (g) Amounts for PFPC represent the sum of total operating revenue and net nonoperating income (expense) less debt financing costs.

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Results and Period-end Employees (Unaudited)


Three months ended – in millions (a)	December 31 2006			September 30 2006		June 30 2006		March 31 2006			December 31 2005
Earnings
Retail Banking	$	184		$	206	$	185	$	190		$	195
Corporate & Institutional Banking		129			113		116		105			108
BlackRock (b) (c)		50			42		46		49			48
PFPC		31			40		26		27			29

Total business segment earnings		394			401		373		371			380
Other (b) (d)		(18	)		1,083		8		(17	)		(25	)

Total consolidated net income	$	376		$	1,484	$	381	$	354		$	355

Revenue (e)
Retail Banking	$	799		$	791	$	782	$	753		$	755
Corporate & Institutional Banking		394			356		382		340			358
BlackRock (f)		67			328		365		410			375
PFPC (g)		245			208		208		218			209

Total business segment revenue		1,505			1,683		1,737		1,721			1,697
Other		35			1,834		55		27			25

Total consolidated revenue	$	1,540		$	3,517	$	1,792	$	1,748		$	1,722

(a)	See note (a) on page 6.

(b)

For this PNC business segment reporting presentation, integration costs incurred by BlackRock for the MLIM transaction totaling $8 million, $31 million, $5 million and $3 million for the three months ended December 31, 2006, September 30, 2006, June 30, 2006 and March 31, 2006, respectively, have been reclassified from BlackRock to "Other." These amounts are after-tax and, as applicable, net of minority interest.

(c)	These amounts have been reduced by minority interest income of BlackRock, excluding MLIM integration costs, totaling $20 million, $22 million, $23 million and $22 million for the three months ended September 30, 2006, June 30, 2006, March 31, 2006 and December 31, 2005, respectively.

(d)	"Other" for the three months ended September 30, 2006 includes the after-tax impact of the gain on the BlackRock/MLIM transaction and costs associated with the securities portfolio rebalancing and mortgage loan portfolio repositioning.

(e)	See note (e) on page 6. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):


	December 31 2006		September 30 2006		June 30 2006		March 31 2006		December 31 2005
Total consolidated revenue, book (GAAP) basis	$	1,535	$	3,510	$	1,786	$	1,741	$	1,709
Taxable-equivalent adjustment		5		7		6		7		13

Total consolidated revenue, taxable-equivalent basis	$	1,540	$	3,517	$	1,792	$	1,748	$	1,722

(f)	See note (f) on page 6.

(g)	See note (g) on page 6.


Period-end Employees	December 31 2006	September 30 2006	June 30 2006	March 31 2006	December 31 2005
Full-time employees
Retail Banking	9,549	9,531	9,674	9,725	9,679
Corporate & Institutional Banking	1,936	1,925	1,899	1,892	1,861
BlackRock			2,317	2,232	2,151
PFPC	4,381	4,317	4,314	4,291	4,391
Other
Operations & Technology	3,988	4,006	3,994	3,942	3,966
Staff Services	1,601	1,595	1,593	1,560	1,545

Total Other	5,589	5,601	5,587	5,502	5,511

Total full-time employees	21,455	21,374	23,791	23,642	23,593
Total part-time employees	2,328	2,165	2,241	2,003	1,755

Total employees	23,783	23,539	26,032	25,645	25,348

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. No employees are shown for BlackRock at December 31, 2006 or September 30, 2006 as we deconsolidated BlackRock effective September 29, 2006.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited)


Year ended December 31
Taxable-equivalent basis (a)
Dollars in millions	2006			2005
INCOME STATEMENT
Net interest income	$	1,678		$	1,593
Noninterest income
Asset management		352			337
Service charges on deposits		304			265
Brokerage		236			217
Consumer services		348			278
Other		207			178

Total noninterest income		1,447			1,275

Total revenue		3,125			2,868
Provision for credit losses		81			52
Noninterest expense		1,827			1,726

Pretax earnings		1,217			1,090
Income taxes		452			408

Earnings	$	765		$	682

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	13,813		$	13,351
Indirect		1,052			936
Other consumer		1,248			1,195

Total consumer		16,113			15,482
Commercial		5,721			5,094
Floor plan		910			975
Residential mortgage		1,440			1,405
Other		242			261

Total loans		24,426			23,217
Goodwill and other intangible assets		1,581			1,394
Loans held for sale		1,607			1,553
Other assets		1,634			1,454

Total assets	$	29,248		$	27,618

Deposits
Noninterest-bearing demand	$	7,841		$	7,639
Interest-bearing demand		7,906			7,946
Money market		14,750			13,635

Total transaction deposits		30,497			29,220
Savings		2,035			2,574
Certificates of deposit		13,861			11,494

Total deposits		46,393			43,288
Other liabilities		553			392
Capital		2,986			2,852

Total funds	$	49,932		$	46,532

PERFORMANCE RATIOS
Return on average capital		26	%		24	%
Noninterest income to total revenue		46			44
Efficiency		58			60
Efficiency, as adjusted (b)		56			58

(a)	See notes (a) and (e) on page 6.

(b)	See page 12 for a reconciliation of the efficiency ratio, as adjusted, to the efficiency ratio.

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


Year ended December 31
Dollars in millions except as noted	2006			2005
OTHER INFORMATION (a)
Credit-related statistics:
Total nonperforming assets	$	106		$	90
Net charge-offs	$	85		$	53
Annualized net charge-off ratio		.35	%		.23	%

Home equity portfolio credit statistics:
% of first lien positions		43	%		46	%
Weighted average loan-to-value ratios		70	%		68	%
Weighted average FICO scores		728			728
Loans 90 days past due		.24	%		.21	%

Checking-related statistics:
Retail Banking checking relationships		1,954,000			1,934,000
Consumer DDA households using online banking		938,000			855,000
% of consumer DDA households using online banking		53	%		49	%
Consumer DDA households using online bill payment		404,000			205,000
% of consumer DDA households using online bill payment		23	%		12	%

Small business managed deposits:
On-balance sheet
Noninterest-bearing demand	$	4,359		$	4,353
Interest-bearing demand		1,529			1,560
Money market		2,684			2,849
Certificates of deposit		645			412
Off-balance sheet (b)
Small business sweep checking		1,619			1,305

Total managed deposits		10,836			10,479

Brokerage statistics:
Margin loans	$	163		$	217
Financial consultants (c )		758			779
Full service brokerage offices		99			100
Brokerage account assets (billions)	$	46		$	42

Other statistics:
Gains on sales of education loans (d)	$	33		$	19
Full-time employees		9,549			9,679
Part-time employees		1,829			1,117
ATMs		3,581			3,721
Branches (e)		852			839

ASSETS UNDER ADMINISTRATION (in billions) (f)
Assets under management
Personal	$	44		$	40
Institutional		10			9

Total	$	54		$	49

Asset Type
Equity	$	34		$	31
Fixed income		12			12
Liquidity/Other		8			6

Total	$	54		$	49

Nondiscretionary assets under administration
Personal	$	25		$	27
Institutional		61			57

Total	$	86		$	84

Asset Type
Equity	$	33		$	33
Fixed income		24			24
Liquidity/Other		29			27

Total	$	86		$	84

(a)	Presented as of December 31, except for net charge-offs, annualized net charge-off ratio, gains on sales of education loans, and small business deposits, which are for the year ended.

(b)	Represents small business balances, a portion of which are calculated on a one-month lag. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.

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

(d)	Included in "Noninterest income-Other" on page 8.

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

(f)	Excludes brokerage account assets.

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited)


Three months ended Taxable-equivalent basis (a) Dollars in millions	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
INCOME STATEMENT
Net interest income	$	419		$	427		$	424		$	408		$	417
Noninterest income
Asset management		91			87			87			87			86
Service charges on deposits		77			79			77			71			72
Brokerage		60			59			59			58			54
Consumer services		88			86			88			86			78
Other		64			53			47			43			48

Total noninterest income		380			364			358			345			338

Total revenue		799			791			782			753			755
Provision for credit losses		35			9			28			9			9
Noninterest expense		471			456			460			440			434

Pretax earnings		293			326			294			304			312
Income taxes		109			120			109			114			117

Earnings	$	184		$	206		$	185		$	190		$	195

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	13,807		$	13,849		$	13,816		$	13,778		$	13,751
Indirect		1,133			1,069			1,019			987			980
Other consumer		1,322			1,221			1,202			1,248			1,264

Total consumer		16,262			16,139			16,037			16,013			15,995
Commercial		5,907			5,821			5,715			5,433			5,282
Floor plan		853			854			964			970			936
Residential mortgage		1,031			1,509			1,577			1,648			1,716
Other		234			250			248			236			244

Total loans		24,287			24,573			24,541			24,300			24,173
Goodwill and other intangible assets		1,574			1,580			1,586			1,582			1,560
Loans held for sale		1,505			1,513			1,535			1,880			1,802
Other assets		1,671			1,640			1,621			1,607			1,505

Total assets	$	29,037		$	29,306		$	29,283		$	29,369		$	29,040

Deposits
Noninterest-bearing demand	$	7,834		$	7,848		$	7,908		$	7,777		$	7,925
Interest-bearing demand		7,865			7,787			7,950			8,025			8,095
Money market		14,822			14,832			14,697			14,644			14,399

Total transaction deposits		30,521			30,467			30,555			30,446			30,419
Savings		1,877			1,976			2,109			2,183			2,309
Certificates of deposit		14,694			14,053			13,560			13,115			12,671

Total deposits		47,092			46,496			46,224			45,744			45,399
Other liabilities		598			515			537			560			392
Capital		3,034			2,988			2,979			2,943			2,965

Total funds	$	50,724		$	49,999		$	49,740		$	49,247		$	48,756

PERFORMANCE RATIOS
Return on average capital		24	%		27	%		25	%		26	%		26	%
Noninterest income to total revenue		48			46			46			46			45
Efficiency		59			58			59			58			57
Efficiency, as adjusted (b)		56			56			57			57			55

(a)	See notes (a) and (e) on page 6.

(b)	See page 12 for a reconciliation of the efficiency ratio, as adjusted, to the efficiency ratio.

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


Three months ended Dollars in millions except as noted	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
OTHER INFORMATION (a)
Credit-related statistics:
Total nonperforming assets	$	106		$	95		$	104		$	93		$	90
Net charge-offs (b)	$	21		$	31		$	19		$	14		$	12
Annualized net charge-off ratio		.34	%		.50	%		.31	%		.23	%		.20	%

Home equity portfolio credit statistics:
% of first lien positions		43	%		44	%		45	%		45	%		46	%
Weighted average loan-to-value ratios		70	%		69	%		69	%		68	%		68	%
Weighted average FICO scores		728			728			728			727			728
Loans 90 days past due		.24	%		.22	%		.21	%		.22	%		.21	%

Checking-related statistics:
Retail Banking checking relationships		1,954,000			1,958,000			1,956,000			1,950,000			1,934,000
Consumer DDA households using online banking		938,000			920,000			897,000			880,000			855,000
% of consumer DDA households using online banking		53	%		52	%		51	%		50	%		49	%
Consumer DDA households using online bill payment		404,000			361,000			305,000			253,000			205,000
% of consumer DDA households using online bill payment		23	%		20	%		17	%		14	%		12	%

Small business managed deposits:
On-balance sheet
Noninterest-bearing demand	$	4,387		$	4,370		$	4,319		$	4,357		$	4,555
Interest-bearing demand		1,724			1,545			1,392			1,454			1,656
Money market		2,755			2,658			2,617			2,705			2,941
Certificates of deposit		802			647			574			553			530
Off-balance sheet (c)
Small business sweep checking		1,812			1,676			1,532			1,454			1,392

Total managed deposits	$	11,480		$	10,896		$	10,434		$	10,523		$	11,074

Brokerage statistics:
Margin loans	$	163		$	170		$	194		$	205		$	217
Financial consultants (d)		758			752			775			783			779
Full service brokerage offices		99			99			100			100			100
Brokerage account assets (billions)	$	46		$	44		$	43		$	43		$	42

Other statistics:
Gains on sales of education loans (e)	$	11		$	11		$	7		$	4		$	4
Full-time employees		9,549			9,531			9,674			9,725			9,679
Part-time employees		1,829			1,660			1,526			1,373			1,117
ATMs		3,581			3,594			3,553			3,763			3,721
Branches (f)		852			848			846			846			839

ASSETS UNDER ADMINISTRATION (in billions) (g)
Assets under management
Personal	$	44		$	42		$	40		$	40		$	40
Institutional		10			10			10			10			9

Total	$	54		$	52		$	50		$	50		$	49

Asset Type
Equity	$	34		$	32		$	31		$	32		$	31
Fixed income		12			12			12			12			12
Liquidity/Other		8			8			7			6			6

Total	$	54		$	52		$	50		$	50		$	49

Nondiscretionary assets under administration

Personal	$	25		$	27		$	25		$	28		$	27
Institutional		61			62			60			59			57

Total	$	86		$	89		$	85		$	87		$	84

Asset Type
Equity	$	33		$	32		$	31		$	33		$	33
Fixed income		24			27			26			26			24
Liquidity/Other		29			30			28			28			27

Total	$	86		$	89		$	85		$	87		$	84

(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, which are for the three months ended.

(b)	The increase at September 30, 2006 was primarily due to a single large overdraft fraud that occurred during the second quarter of 2006.

(c)	Represents small business balances, a portion of which are calculated on a one-month lag. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.

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

(e)	Included in "Noninterest income-Other" on page 10.

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

(g)	Excludes brokerage account assets.

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking Efficiency Ratios (Unaudited)


	Three months ended										Year ended December 31
	December 31		September 30		June 30		March 31		December 31
	2006		2006		2006		2006		2005		2006		2005
Efficiency (a)	59	%	58	%	59	%	58	%	57	%	58	%	60	%
Efficiency, as adjusted (b)	56	%	56	%	57	%	57	%	55	%	56	%	58	%

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


	Three months ended										Year ended December 31
	December 31		September 30		June 30		March 31		December 31
In millions	2006		2006		2006		2006		2005		2006		2005
Revenue	$	799	$	791	$	782	$	753	$	755	$	3,125	$	2,868
Less: Hilliard Lyons		52		48		50		56		48		206		198

Revenue, as adjusted	$	747	$	743	$	732	$	697	$	707	$	2,919	$	2,670
Noninterest expense	$	471	$	456	$	460	$	440	$	434	$	1,827	$	1,726
Less: Hilliard Lyons		50		43		45		45		44		183		178

Noninterest expense, as adjusted	$	421	$	413	$	415	$	395	$	390	$	1,644	$	1,548

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited)


Year ended December 31 Taxable-equivalent basis (a) Dollars in millions except as noted	2006			2005
INCOME STATEMENT
Net interest income	$	720		$	739
Noninterest income
Corporate service fees		526			398
Other		226			198

Noninterest income		752			596

Total revenue		1,472			1,335
Provision for (recoveries of) credit losses		42			(30	)
Noninterest expense		749			658

Pretax earnings		681			707
Income taxes		218			227

Earnings	$	463		$	480

AVERAGE BALANCE SHEET
Loans
Corporate (b)	$	9,925		$	10,656
Commercial real estate		2,876			2,289
Commercial - real estate related		2,433			2,071
Asset-based lending		4,467			4,203

Total loans (b)		19,701			19,219
Loans held for sale		893			752
Goodwill and other intangible assets		1,352			1,064
Other assets		4,602			4,274

Total assets	$	26,548		$	25,309

Deposits
Noninterest-bearing demand	$	6,771		$	6,025
Money market		2,654			2,670
Other		907			687

Total deposits		10,332			9,382
Commercial paper (c)					1,838
Other liabilities		3,771			3,348
Capital		1,976			1,724

Total funds	$	16,079		$	16,292

PERFORMANCE RATIOS
Return on average capital		23	%		28	%
Noninterest income to total revenue		51			45
Efficiency		51			49

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	136		$	98
Acquisitions/additions		102			74
Repayments/transfers		(38	)		(36	)

End of period	$	200		$	136

OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	424		$	410
Capital Markets	$	283		$	175
Midland Loan Services	$	184		$	144
Total loans (e)	$	20,054		$	18,817
Nonperforming assets (e)	$	63		$	124
Net charge-offs (recoveries)	$	54		$	(23	)
Full-time employees (e)		1,936			1,861
Net gains on commercial mortgage loan sales	$	55		$	61
Net carrying amount of commercial mortgage servicing rights (e)	$	471		$	344

(a)	See notes (a) and (e) on page 6.

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

(c)	Includes Market Street for 2005 as applicable. See Supplemental Average Balance Sheet Information on pages 19 and 20.

(d)	Represents consolidated PNC amounts.

(e)	Presented as of period-end.

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited)


Three months ended Taxable-equivalent basis (a) Dollars in millions except as noted	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
INCOME STATEMENT
Net interest income	$	190		$	182		$	173		$	175		$	184
Noninterest income
Corporate service fees		149			131			133			113			118
Other		55			43			76			52			56

Noninterest income		204			174			209			165			174

Total revenue		394			356			382			340			358
Provision for credit losses		6			7			17			12			23
Noninterest expense		199			182			192			176			177

Pretax earnings		189			167			173			152			158
Income taxes		60			54			57			47			50

Earnings	$	129		$	113		$	116		$	105		$	108

AVERAGE BALANCE SHEET
Loans
Corporate (b)	$	10,193		$	9,966		$	9,981		$	9,685		$	9,829
Commercial real estate		3,143			2,953			2,760			2,643			2,620
Commercial - real estate related		2,189			2,476			2,484			2,454			2,219
Asset-based lending		4,594			4,563			4,452			4,252			4,227

Total loans (b)		20,119			19,958			19,677			19,034			18,895
Loans held for sale		965			865			875			866			923
Goodwill and other intangible assets		1,399			1,366			1,328			1,314			1,265
Other assets		4,988			4,721			4,411			4,282			4,243

Total assets	$	27,471		$	26,910		$	26,291		$	25,496		$	25,326

Deposits
Noninterest-bearing demand	$	7,210		$	6,817		$	6,353		$	6,697		$	6,526
Money market		3,644			2,678			2,168			2,110			2,886
Other		921			995			933			777			717

Total deposits		11,775			10,490			9,454			9,584			10,129
Commercial paper (c)														514
Other liabilities		4,028			3,885			3,722			3,439			3,405
Capital		2,054			1,879			2,027			1,945			1,787

Total funds	$	17,857		$	16,254		$	15,203		$	14,968		$	15,835

PERFORMANCE RATIOS
Return on average capital		25	%		24	%		23	%		22	%		24	%
Noninterest income to total revenue		52			49			55			49			49
Efficiency		51			51			50			52			49

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	180		$	151		$	140		$	136		$	126
Acquisitions/additions		33			37			19			13			21
Repayments/transfers		(13	)		(8	)		(8	)		(9	)		(11	)

End of period	$	200		$	180		$	151		$	140		$	136

OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	108		$	108		$	106		$	102		$	105
Capital Markets	$	79		$	64		$	76		$	64		$	62
Midland Loan Services	$	53		$	47		$	42		$	42		$	41
Total loans (e)	$	20,054		$	20,405		$	20,057		$	19,447		$	18,817
Nonperforming assets (e)	$	63		$	94		$	125		$	112		$	124
Net charge-offs	$	24		$	14		$	12		$	4		$	28
Full-time employees (e)		1,936			1,925			1,899			1,892			1,861
Net gains on commercial mortgage loan sales	$	18		$	12		$	18		$	7		$	13
Net carrying amount of commercial mortgage servicing rights (e)	$	471		$	414		$	385		$	353		$	344

(a)	See notes (a) and (e) on page 6.

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

(c)	Includes Market Street as applicable.

(d)	Represents consolidated PNC amounts.

(e)	Presented as of period-end.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


Year ended December 31 Dollars in millions except as noted	2006			2005
INCOME STATEMENT
Servicing revenue	$	747		$	732
Distribution/out-of-pocket revenue		170			147
Other revenue					10

Total operating revenue		917			889

Operating expense		519			524
Distribution/out-of-pocket expenses		170			147
Amortization of other intangibles, net		14			14

Total expense		703			685

Operating income		214			204
Debt financing		42			38
Nonoperating income (expense) (b)		4			(5	)

Pretax earnings		176			161
Income taxes		52			57

Earnings	$	124		$	104

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,012		$	1,025
Other assets		1,192			1,103

Total assets	$	2,204		$	2,128

Debt financing	$	792		$	890
Other liabilities		917			864
Shareholder's equity		495			374

Total funds	$	2,204		$	2,128

PERFORMANCE RATIOS
Return on average equity		29	%		32	%
Operating margin (c)		23			23
Operating margin, as adjusted (d)		29			27

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions) (e)
Domestic	$	746		$	754
Offshore		91			81

Total	$	837		$	835

Asset type (in billions)
Money market	$	281		$	361
Equity		354			305
Fixed income		117			104
Other		85			65

Total	$	837		$	835

Custody fund assets (in billions)	$	427		$	476

Shareholder accounts (in millions)
Transfer agency		18			19
Subaccounting		50			43

Total		68			62

OTHER INFORMATION
Full-time employees (at December 31)		4,381			4,391

(a)	See notes (a) and (e) on page 6.

(b)	Net of nonoperating expense.

(c)	Operating income divided by total operating revenue.

(d)	Reconciliation of reported amounts to amounts used in the calculation of the operating margin, as adjusted:


Total operating revenue	$	917	$	889
Less: PFPC distribution/out-of-pocket revenue		170		147

Total operating revenue, as adjusted	$	747	$	742

Total expense	$	703	$	685
Less: PFPC distribution/out-of-pocket expenses		170		147

Total expense, as adjusted	$	533	$	538

Total operating income, as adjusted	$	214	$	204

We have provided the operating margin, as adjusted, because the distribution/out-of-pocket revenue and expenses have no impact on PFPC earnings. Therefore, we believe that this adjusted performance ratio may assist shareholders, investor analysts, regulators and others in their evaluation of PFPC’s performance.

(e)	Includes alternative investment net assets serviced.

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)


Three months ended Dollars in millions except as noted	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
INCOME STATEMENT
Servicing revenue	$	190		$	183		$	184		$	190		$	185
Distribution/out-of-pocket revenue		64			35			34			37			32

Total operating revenue		254			218			218			227			217

Operating expense		129			128			129			133			129
Distribution/out-of-pocket expenses		64			35			34			37			32
Amortization of other intangibles, net		4			3			4			3			4

Total expense		197			166			167			173			165

Operating income		57			52			51			54			52
Debt financing		10			11			11			10			10
Nonoperating income		1			1			1			1			2

Pretax earnings		48			42			41			45			44
Income taxes (b)		17			2			15			18			15

Earnings	$	31		$	40		$	26		$	27		$	29

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,012		$	1,015		$	1,018		$	1,022		$	1,025
Other assets		1,192			1,038			1,398			1,363			1,103

Total assets	$	2,204		$	2,053		$	2,416		$	2,385		$	2,128

Debt financing	$	792		$	813		$	852		$	890		$	890
Other liabilities		917			772			1,137			1,094			864
Shareholder's equity		495			468			427			401			374

Total funds	$	2,204		$	2,053		$	2,416		$	2,385		$	2,128

PERFORMANCE RATIOS
Return on average equity		26	%		35	%		25	%		28	%		32	%
Operating margin (c)		22			24			23			24			24
Operating margin, as adjusted (d)		30			28			28			28			28

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions) (e)
Domestic	$	746		$	695		$	671		$	665		$	754
Offshore		91			79			72			85			81

Total	$	837		$	774		$	743		$	750		$	835

Asset type (in billions)
Money market	$	281		$	260		$	247		$	238		$	361
Equity		354			331			317			338			305
Fixed income		117			111			110			107			104
Other		85			72			69			67			65

Total	$	837		$	774		$	743		$	750		$	835

Custody fund assets (in billions)	$	427		$	399		$	389		$	383		$	476

Shareholder accounts (in millions)
Transfer agency		18			18			18			20			19
Subaccounting		50			48			47			45			43

Total		68			66			65			65			62

OTHER INFORMATION
Period-end full-time employees		4,381			4,317			4,314			4,291			4,391

(a)	See notes (a) and (e) on page 6.

(b)	Income taxes for the quarter ended September 30, 2006 included the benefit of a $13.5 million reversal of deferred taxes related to foreign subsidiary earnings.

(c)	Operating income divided by total operating revenue.

(d)	Reconciliation of reported amounts to amounts used in the calculation of the operating margin, as adjusted:


Total operating revenue	$	254	$	218	$	218	$	227	$	217
Less: PFPC distribution/out-of-pocket revenue		64		35		34		37		32

Total operating revenue, as adjusted	$	190	$	183	$	184	$	190	$	185

Total expense	$	197	$	166	$	167	$	173	$	165
Less: PFPC distribution/out-of-pocket expenses		64		35		34		37		32

Total expense, as adjusted	$	133	$	131	$	133	$	136	$	133

Total operating income, as adjusted	$	57	$	52	$	51	$	54	$	52

(e)	Includes alternative investment net assets serviced.

Page 16

THE PNC FINANCIAL SERVICES GROUP, INC.

Efficiency Ratios (Unaudited)


	Three months ended										Year ended
	December 31 2006		September 30 2006		June 30 2006		March 31 2006		December 31 2005		December 31 2006		December 31 2005
Efficiency, as reported (a)	63	%	33	%	64	%	67	%	66	%	52	%	68	%
Efficiency, as adjusted (b)	63	%	62	%	60	%	63	%	63	%	62	%	66	%
Efficiency, as adjusted and excluding PFPC distribution/ out-of-pocket revenue and expenses (b)	61	%	61	%	59	%	61	%	62	%	61	%	65	%

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

(b)

The following present calculations of PNC's efficiency ratio (1) adjusted to illustrate the impact of certain significant 2006 items and adjusted as if we had recorded our investment in BlackRock on the equity method for all periods presented, and (2) further adjusted by excluding PFPC distribution/out-of-pocket revenue and expenses primarily associated with pooled investment vehicles to illustrate the impact of certain items due to the magnitude of the aggregate of those items. We have provided these adjusted amounts and reconciliations so that shareholders, investor analysts, regulators and others will be better able to evaluate the impact of certain significant items on our "as reported" efficiency ratio for these periods, in addition to providing a basis of comparability for the impact of BlackRock. Amounts used for these adjusted ratios are reconciled to amounts used in the PNC efficiency ratio as reported (GAAP basis).


	Three months ended															Year ended
Dollars in millions	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005			December 31 2006			December 31 2005
Reconciliation of GAAP amounts with amounts used in the calculation of the adjusted efficiency ratio:
GAAP basis - net interest income	$	566		$	567		$	556		$	556		$	555		$	2,245		$	2,154
Adjustment to net interest income: BlackRock equity method (c)					(3	)		(4	)		(3	)		(5	)		(10	)		(12	)

Adjusted net interest income	$	566		$	564		$	552		$	553		$	550		$	2,235		$	2,142

GAAP basis - noninterest income	$	969		$	2,943		$	1,230		$	1,185		$	1,154		$	6,327		$	4,173
Adjustments:
Gain on BlackRock/MLIM transaction					(2,078	)											(2,078	)
Securities portfolio rebalancing loss					196												196
Mortgage loan portfolio repositioning loss					48												48
BlackRock/MLIM transaction integration costs		10															10
BlackRock equity method (c)					(277	)		(312	)		(354	)		(317	)		(943	)		(1,051	)

Adjusted noninterest income	$	979		$	832		$	918		$	831		$	837		$	3,560		$	3,122

Adjusted total revenue	$	1,545		$	1,396		$	1,470		$	1,384		$	1,387		$	5,795		$	5,264

GAAP basis - noninterest expense	$	969		$	1,167		$	1,145		$	1,162		$	1,127		$	4,443		$	4,306
Adjustments:
BlackRock/MLIM transaction integration costs					(72	)		(13	)		(6	)					(91	)
BlackRock equity method (c)					(223	)		(251	)		(291	)		(257	)		(765	)		(853	)

Adjusted noninterest expense	$	969		$	872		$	881		$	865		$	870		$	3,587		$	3,453

Adjusted efficiency ratio		63	%		62	%		60	%		63	%		63	%		62	%		66	%

Amounts further adjusted by excluding PFPC distribution/out-of-pocket revenue and expenses:
Adjusted net interest income	$	566		$	564		$	552		$	553		$	550		$	2,235		$	2,142
Adjusted noninterest income	$	979		$	832		$	918		$	831		$	837		$	3,560		$	3,122
Less: PFPC distribution/out-of-pocket revenue		64			35			34			37			32			170			147

Noninterest income, as adjusted and excluding PFPC distribution/out-of-pocket revenue	$	915		$	797		$	884		$	794		$	805		$	3,390		$	2,975

Total revenue, as adjusted and excluding PFPC distribution/out-of-pocket revenue	$	1,481		$	1,361		$	1,436		$	1,347		$	1,355		$	5,625		$	5,117

Adjusted noninterest expense	$	969		$	872		$	881		$	865		$	870		$	3,587		$	3,453
Less: PFPC distribution/out-of-pocket expenses		64			35			34			37			32			170			147

Noninterest expense, as adjusted and excluding PFPC distribution/out-of-pocket expenses	$	905		$	837		$	847		$	828		$	838		$	3,417		$	3,306

Efficiency ratio, as adjusted and excluding PFPC distribution/out-of-pocket revenue and expenses		61	%		61	%		59	%		61	%		62	%		61	%		65	%

(c)	See Appendix to Financial Supplement.

Page 17

THE PNC FINANCIAL SERVICES GROUP, INC.

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

Taxable-equivalent basis


	Three months ended										Year ended
Net Interest Income In millions	December 31 2006		September 30 2006		June 30 2006		March 31 2006		December 31 2005		December 31 2006		December 31 2005
Interest income
Loans	$	824	$	841	$	801	$	750	$	730	$	3,216	$	2,680
Securities available for sale and held to maturity		279		272		255		244		234		1,050		825
Other		119		97		76		79		83		371		262

Total interest income		1,222		1,210		1,132		1,073		1,047		4,637		3,767

Interest expense
Deposits		450		434		379		327		305		1,590		981
Borrowed funds		201		202		191		183		174		777		599

Total interest expense		651		636		570		510		479		2,367		1,580

Net interest income (a)	$	571	$	574	$	562	$	563	$	568	$	2,270	$	2,187

(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:


	Three months ended										Year ended
In millions	December 31 2006		September 30 2006		June 30 2006		March 31 2006		December 31 2005		December 31 2006		December 31 2005
Net interest income, GAAP basis	$	566	$	567	$	556	$	556	$	555	$	2,245	$	2,154
Taxable-equivalent adjustment		5		7		6		7		13		25		33

Net interest income, taxable-equivalent basis	$	571	$	574	$	562	$	563	$	568	$	2,270	$	2,187


	Three months ended															Year ended
Net Interest Margin	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005			December 31 2006			December 31 2005
Average yields/rates
Yield on interest-earning assets
Loans		6.63	%		6.59	%		6.38	%		6.14	%		5.91	%		6.49	%		5.66	%
Securities available for sale and held to maturity		5.27			5.01			4.76			4.66			4.49			4.93			4.28
Other		5.56			5.78			5.23			5.04			5.00			5.45			4.11
Total yield on interest-earning assets		6.15			6.09			5.84			5.64			5.44			5.97			5.16
Rate on interest-bearing liabilities
Deposits		3.54			3.43			3.11			2.81			2.58			3.25			2.21
Borrowed funds		5.39			5.40			5.06			4.65			4.23			5.17			3.70
Total rate on interest-bearing liabilities		3.97			3.88			3.56			3.27			3.01			3.70			2.61

Interest rate spread		2.18			2.21			2.28			2.37			2.43			2.27			2.55
Impact of noninterest-bearing sources		.70			.68			.62			.58			.53			.65			.45

Net interest margin		2.88	%		2.89	%		2.90	%		2.95	%		2.96	%		2.92	%		3.00	%


	Three months ended															Year ended
Trading Revenue (b) In millions	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005			December 31 2006			December 31 2005
Net interest income (expense)	$	(2	)	$	(1	)	$	(3	)				$	2		$	(6	)	$	9
Noninterest income		33			38			55		$	57			49			183			157

Total trading revenue	$	31		$	37		$	52		$	57		$	51		$	177		$	166

Securities underwriting and trading (c)	$	11		$	7		$	6		$	14		$	6		$	38		$	47
Foreign exchange		13			11			17			14			12			55			39
Financial derivatives		7			19			29			29			33			84			80

Total trading revenue	$	31		$	37		$	52		$	57		$	51		$	177		$	166

(b)	See pages 19-22 for disclosure of average trading assets and liabilities.

(c)	Includes changes in fair value for certain loans accounted for at fair value. See pages 19 and 21 for disclosure of average loans at fair value.

Page 18

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


Year ended December 31- in millions	2006			2005
Assets
Interest-earning assets
Securities available for sale and held to maturity
Mortgage-backed, asset-backed, and other debt	$	14,670		$	11,377
U.S. Treasury and government agencies/corporations		6,251			7,558
State and municipal		148			167
Corporate stocks and other		246			173

Total securities available for sale and held to maturity (a) (b)		21,315			19,275
Loans, net of unearned income
Commercial		20,201			19,007
Commercial real estate		3,212			2,609
Consumer		16,125			16,208
Residential mortgage		6,888			6,136
Lease financing		2,777			2,944
Other		363			453

Total loans, net of unearned income (a)		49,566			47,357
Loans held for sale		2,683			2,301
Federal funds sold and resale agreements		1,143			985
Other		2,985			3,083

Total interest-earning assets		77,692			73,001
Noninterest-earning assets
Allowance for loan and lease losses		(591	)		(632	)
Cash and due from banks		3,121			3,164
Other assets		14,790			13,015

Total assets (a)	$	95,012		$	88,548

Supplemental Average Balance Sheet Information
Loans
Loans excluding conduit	$	49,566		$	45,691
Market Street conduit (a)					1,666

Total loans (a)	$	49,566		$	47,357

Trading Assets
Securities (c)	$	1,712		$	1,850
Resale agreements (d)		623			663
Financial derivatives (e)		1,148			772
Loans at fair value (e)		128

Total trading assets	$	3,611		$	3,285

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

(b)	Securities held to maturity totaled less than $.5 million for the year ended December 31, 2006 and $1 million for the year ended December 31, 2005 and are included in the "Mortgage-backed, asset-backed, and other debt" category above.

(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 assets" above.

Page 19

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


Year ended December 31- in millions	2006		2005
Liabilities, Minority and Noncontrolling Interests, and Shareholders' Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	19,745	$	17,930
Demand		8,187		8,224
Savings		2,081		2,645
Retail certificates of deposit		13,999		11,623
Other time		1,364		1,559
Time deposits in foreign offices		3,613		2,347

Total interest-bearing deposits		48,989		44,328
Borrowed funds
Federal funds purchased		3,081		2,098
Repurchase agreements		2,205		2,189
Bank notes and senior debt		3,128		3,198
Subordinated debt		4,417		4,044
Commercial paper (a)		166		2,223
Other		2,046		2,447

Total borrowed funds		15,043		16,199

Total interest-bearing liabilities		64,032		60,527
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders' equity
Demand and other noninterest-bearing deposits		14,320		13,309
Allowance for unfunded loan commitments and letters of credit		106		80
Accrued expenses and other liabilities		6,672		6,098
Minority and noncontrolling interests in consolidated entities		600		542
Shareholders' equity		9,282		7,992

Total liabilities, minority and noncontrolling interests, and shareholders' equity	$	95,012	$	88,548

Supplemental Average Balance Sheet Information

Deposits and Other
Interest-bearing deposits	$	48,989	$	44,328
Demand and other noninterest-bearing deposits		14,320		13,309

Total deposits	$	63,309	$	57,637

Transaction deposits	$	42,252	$	39,463
Market Street commercial paper (a)			$	1,837
Common shareholders' equity	$	9,275	$	7,984

Trading Liabilities
Securities sold short (b)	$	965	$	993
Repurchase agreements and other borrowings (c)		833		1,044
Financial derivatives (d)		1,103		825
Borrowings at fair value (d)		31

Total trading liabilities	$	2,932	$	2,862

(a)	See note (a) on page 19.

(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 20

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


Three months ended - in millions	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
Assets
Interest-earning assets
Securities available for sale and held to maturity
Mortgage-backed, asset-backed, and other debt	$	16,747		$	15,109		$	13,771		$	13,007		$	12,541
U.S. Treasury and government agencies/corporations		4,066			6,187			7,263			7,527			7,952
State and municipal		140			144			152			156			161
Corporate stocks and other		277			259			230			216			163

Total securities available for sale and held to maturity (a) (b)		21,230			21,699			21,416			20,906			20,817
Loans, net of unearned income
Commercial		20,458			20,431			20,348			19,556			19,130
Commercial real estate		3,483			3,268			3,071			3,021			2,983
Consumer		16,272			16,150			16,049			16,184			16,310
Residential mortgage		5,606			7,332			7,353			7,272			7,175
Lease financing		2,789			2,790			2,761			2,769			2,821
Other		385			367			354			344			364

Total loans, net of unearned income (a)		48,993			50,338			49,936			49,146			48,783
Loans held for sale		3,167			2,408			2,411			2,745			2,715
Federal funds sold and resale agreements		2,049			1,401			613			488			643
Other		3,198			2,805			2,795			3,147			3,248

Total interest-earning assets		78,637			78,651			77,171			76,432			76,206
Noninterest-earning assets
Allowance for loan and lease losses		(557	)		(609	)		(600	)		(600	)		(628	)
Cash and due from banks		2,999			3,161			3,140			3,187			3,325
Other		17,969			14,142			13,736			13,110			13,167

Total assets (a)	$	99,048		$	95,345		$	93,447		$	92,129		$	92,070

Supplemental Average Balance Sheet Information

Trading Assets
Securities (c)	$	2,111		$	1,460		$	1,477		$	1,797		$	1,852
Resale agreements (d)		1,247			537			378			321			593
Financial derivatives (e)		1,209			1,220			1,251			908			849
Loans at fair value (e)		172			168			170

Total trading assets	$	4,739		$	3,385		$	3,276		$	3,026		$	3,294

(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. Average total loans and average commercial paper for the fourth quarter of 2005 included $430 million and $514 million, respectively, related to Market Street.

(b)	Securities held to maturity totaled less than $.5 million for each of the periods presented and are included in the "Mortgage-backed, asset-backed, and other debt" category above.

(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 21

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


Three months ended - in millions	December 31 2006		September 30 2006		June 30 2006		March 31 2006		December 31 2005
Liabilities, Minority and Noncontrolling Interests, and Shareholders' Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	20,879	$	20,565	$	19,019	$	18,482	$	19,194
Demand		8,143		8,075		8,229		8,304		8,378
Savings		1,882		2,021		2,177		2,250		2,377
Retail certificates of deposit		14,837		14,209		13,686		13,243		12,804
Other time		1,355		1,467		1,323		1,309		1,527
Time deposits in foreign offices		3,068		3,712		4,276		3,396		2,482

Total interest-bearing deposits		50,164		50,049		48,710		46,984		46,762
Borrowed funds
Federal funds purchased		3,167		3,831		2,715		2,594		2,518
Repurchase agreements		2,264		2,027		2,226		2,307		1,915
Bank notes and senior debt		2,757		2,801		3,145		3,824		3,558
Subordinated debt		4,361		4,436		4,437		4,437		4,438
Commercial paper (a)		88		153		206		219		798
Other		2,073		1,474		2,298		2,380		2,960

Total borrowed funds		14,710		14,722		15,027		15,761		16,187

Total interest-bearing liabilities		64,874		64,771		63,737		62,745		62,949
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders' equity
Demand and other noninterest-bearing deposits		14,827		14,549		13,926		13,966		14,057
Allowance for unfunded loan commitments and letters of credit		117		104		103		101		80
Accrued expenses and other liabilities		7,882		6,346		6,305		6,106		6,049
Minority and noncontrolling interests in consolidated entities		542		640		631		589		599
Shareholders' equity		10,806		8,935		8,745		8,622		8,336

Total liabilities, minority and noncontrolling interests, and shareholders' equity	$	99,048	$	95,345	$	93,447	$	92,129	$	92,070

Supplemental Average Balance Sheet Information

Deposits and Other
Interest-bearing deposits	$	50,164	$	50,049	$	48,710	$	46,984	$	46,762
Demand and other noninterest-bearing deposits		14,827		14,549		13,926		13,966		14,057

Total deposits	$	64,991	$	64,598	$	62,636	$	60,950	$	60,819
Transaction deposits	$	43,849	$	43,189	$	41,174	$	40,752	$	41,629
Common shareholders' equity	$	10,799	$	8,928	$	8,738	$	8,615	$	8,328

Trading Liabilities
Securities sold short (b)	$	1,553	$	867	$	769	$	663	$	961
Repurchase agreements and other borrowings (c)		1,096		708		641		886		985
Financial derivatives (d)		1,156		1,151		1,200		901		908
Borrowings at fair value (d)		34		40		48

Total trading liabilities	$	3,839	$	2,766	$	2,658	$	2,450	$	2,854

(a)	See note (a) on page 21.

(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 22

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans and Lending Statistics (Unaudited)

Loans


Period ended - in millions	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
Commercial
Retail/wholesale	$	5,301		$	5,245		$	5,393		$	4,962		$	4,854
Manufacturing		4,189			4,318			4,164			4,113			4,045
Other service providers		2,186			2,155			2,179			2,114			1,986
Real estate related		2,825			3,000			2,903			2,845			2,577
Financial services		1,324			1,423			1,479			1,561			1,438
Health care		707			685			641			651			616
Other		4,052			3,858			3,805			3,681			3,809

Total commercial		20,584			20,684			20,564			19,927			19,325

Commercial real estate
Real estate projects		2,716			2,691			2,438			2,325			2,244
Mortgage		816			794			768			721			918

Total commercial real estate		3,532			3,485			3,206			3,046			3,162

Equipment lease financing		3,556			3,609			3,583			3,558			3,628

Total commercial lending		27,672			27,778			27,353			26,531			26,115

Consumer
Home equity		13,749			13,876			13,853			13,787			13,790
Automobile		1,135			1,061			1,008			958			938
Other		1,631			1,419			1,388			1,363			1,445

Total consumer		16,515			16,356			16,249			16,108			16,173

Residential mortgage		6,337			5,234			7,416			7,362			7,307
Other		376			347			358			352			341
Unearned income		(795	)		(815	)		(828	)		(832	)		(835	)

Total, net of unearned income	$	50,105		$	48,900		$	50,548		$	49,521		$	49,101


	December 31 2006		December 31 2005
Commercial Lending Exposure (a) (b)
Investment grade or equivalent	49	%	46	%
Non-investment grade
$50 million or greater	2	%	2	%
All other non-investment grade	49	%	52	%

Total	100	%	100	%

(a)	Includes all commercial loans in the Retail Banking and Corporate & Institutional Banking business segments.

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

Page 23

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	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
Beginning balance	$	566		$	611		$	597		$	596		$	634
Charge-offs
Commercial		(23	)		(39	)		(30	)		(16	)		(8	)
Commercial real estate		(1	)		(2	)								(1	)
Equipment lease financing (a)		(14	)											(29	)
Consumer		(15	)		(13	)		(12	)		(12	)		(12	)
Residential mortgage		(1	)		(2	)								(1	)

Total charge-offs (a)		(54	)		(56	)		(42	)		(28	)		(51	)
Recoveries
Commercial		3			6			4			6			6
Commercial real estate		1
Equipment lease financing		1						4
Consumer		4			3			4			4			4

Total recoveries		9			9			12			10			10
Net recoveries (charge-offs)
Commercial		(20	)		(33	)		(26	)		(10	)		(2	)
Commercial real estate					(2	)								(1	)
Equipment lease financing (a)		(13	)					4						(29	)
Consumer		(11	)		(10	)		(8	)		(8	)		(8	)
Residential mortgage		(1	)		(2	)								(1	)

Total net charge-offs (a)		(45	)		(47	)		(30	)		(18	)		(41	)
Provision for credit losses		42			16			44			22			24
Net change in allowance for unfunded loan commitments and letters of credit		(3	)		(14	)					(3	)		(21	)

Ending balance	$	560		$	566		$	611		$	597		$	596

Supplemental Information
Commercial lending net charge-offs (a) (b)	$	(33	)	$	(35	)	$	(22	)	$	(10	)	$	(32	)
Consumer lending net charge-offs (c)		(12	)		(12	)		(8	)		(8	)		(9	)

Total net charge-offs (a)	$	(45	)	$	(47	)	$	(30	)	$	(18	)	$	(41	)
Net charge-offs to average loans
Commercial lending		.49	%		.52	%		.34	%		.16	%		.51	%
Consumer lending		.22			.20			.14			.14			.15

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

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

(c)	Includes consumer and residential mortgage.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


Three months ended - in millions	December 31 2006		September 30 2006		June 30 2006		March 31 2006		December 31 2005
Beginning balance	$	117	$	103	$	103	$	100	$	79
Net change in allowance for unfunded loan commitments and letters of credit		3		14				3		21

Ending balance	$	120	$	117	$	103	$	103	$	100


Net Unfunded Commitments In millions	December 31 2006		September 30 2006		June 30 2006		March 31 2006		December 31 2005
Net unfunded commitments	$	44,835	$	43,804	$	40,904	$	40,806	$	40,178

Page 24

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


Period ended - in millions	December 31 2006			September 30 2006			June 30 2006			March 31 2006			December 31 2005
Nonaccrual loans
Commercial	$	109		$	112		$	151		$	127		$	134
Commercial real estate		12			14			12			13			14
Equipment lease financing		1			14			16			16			17
Consumer		13			14			14			11			10
Residential mortgage		12			13			14			15			15

Total nonaccrual loans		147			167			207			182			190
Troubled debt restructured loan								1

Total nonperforming loans		147			167			208			182			190
Nonperforming loans held for sale (a)											1			1
Foreclosed and other assets
Equipment lease financing		12			12			12			13			13
Residential mortgage		10			9			8			8			9
Other		2			3			3			3			3

Total foreclosed and other assets		24			24			23			24			25

Total nonperforming assets (b)	$	171		$	191		$	231		$	207		$	216

Nonperforming loans to total loans		.29	%		.34	%		.41	%		.37	%		.39	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.33			.36			.44			.40			.42
Nonperforming assets to total assets		.17			.19			.24			.22			.23
(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 $4 million, $4 million, $7 million, $7 million, and $7 million, respectively).	$	11		$	12		$	18		$	21		$	25

Change in Nonperforming Assets


In millions	Year ended
January 1, 2006	$	216
Transferred from accrual		225
Returned to performing		(17	)
Principal activity including payoffs		(116	)
Asset sales		(17	)
Charge-offs and valuation adjustments		(120	)

December 31, 2006	$	171

Page 25

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business


Period ended - in millions	December 31 2006	September 30 2006	June 30 2006	March 31 2006	December 31 2005
Retail Banking
Nonperforming loans	$96	$85	$95	$84	$81
Foreclosed and other assets	10	10	9	9	9

Total	$106	$95	$104	$93	$90

Corporate & Institutional Banking
Nonperforming loans	$50	$81	$112	$97	$108
Nonperforming loans held for sale				1	1
Foreclosed and other assets	13	13	13	14	15

Total	$63	$94	$125	$112	$124

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

Total	$2	$2	$2	$2	$2

Consolidated Totals
Nonperforming loans	$147	$167	$208	$182	$190
Nonperforming loans held for sale				1	1
Foreclosed and other assets	24	24	23	24	25

Total	$171	$191	$231	$207	$216

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

Largest Nonperforming Assets at December 31, 2006 - in millions (b)


Ranking	Outstandings		Industry
1	$17		Food Manufacturing
2	12		Air Transportation
3	11		Computer and Electronic Product Mfg.
4	4		Real Estate
5	4		Fabricated Metal Product Mfg.
6	4		Construction of Buildings
7	4		Private Households
8	3		Truck Transportation
9	3		Merchant Wholesalers, Nondurable Goods
10	2		Motor Vehicle and Parts Dealers

Total	$64

As a percent of total nonperforming assets
	37	%

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

Page 26

Glossary of Terms

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

Adjusted average total assets - Primarily comprised of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on available-for-sale debt securities, less goodwill and certain other intangible assets.

Annualized - Adjusted to reflect a full year of activity.

Assets under management - Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

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 the loan’s market value is less than its carrying amount.

Common shareholders’ equity to total assets - Common shareholders’ equity divided by total assets. Common shareholders’ equity equals total shareholders’ equity less the liquidation value of preferred stock.

Custody 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 on- and off- balance sheet positions.

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

Page 27

Funds transfer pricing - A management accounting methodology designed to recognize the net interest income effects of sources and uses of funds provided by the assets and liabilities of 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.

Futures and forward contracts - Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

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, commercial real estate, equipment lease financing, consumer, 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. 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 - Period-end 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).

Page 28

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 asset. 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 earned on other taxable assets. 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 return swap - A non-traditional swap where one party agrees to pay the other the “total return” of a defined underlying asset (e.g., a loan), usually in return for receiving a stream of LIBOR-based cash flows. The total returns of the asset, including interest and any default shortfall, are passed through to the counterparty. The counterparty is therefore assuming the credit and economic risk of the underlying asset.

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 - 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 29

Business Segment Descriptions

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 world’s largest publicly traded investment management firms. As of December 31, 2006, BlackRock’s assets under management were $1.1 trillion. The firm manages assets on behalf of institutions and individuals worldwide through a variety of equity, fixed income, cash management and alternative investment products. In addition, BlackRock provides BlackRock Solutions^{^®} investment system, risk management, and financial advisory services to a growing number of institutional investors. The firm has a major presence in key global markets, including the United States, Europe, Asia, Australia and the Middle East. For additional information, please see the firm’s SEC reports on its website at www.blackrock.com. At December 31, 2006, PNC owned approximately 34% of BlackRock and accounts for its investment in BlackRock under the equity method.

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 serviced $2.2 trillion in total assets and 68 million shareholder accounts as of December 31, 2006 both domestically and internationally through its Ireland and Luxembourg operations.

Page 30

Additional Information About The PNC/Mercantile Transaction

The PNC Financial Services Group, Inc. and Mercantile Bankshares Corporation have filed a proxy statement/prospectus and other relevant documents concerning the merger with the United States Securities and Exchange Commission (the “SEC”). WE URGE INVESTORS TO READ THE PROXY STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY CONTAIN IMPORTANT INFORMATION.

Investors may obtain these documents free of charge at the SEC’s website (www.sec.gov). In addition, documents filed with the SEC by The PNC Financial Services Group, Inc. are available free of charge from Shareholder Relations at (800) 843-2206. Documents filed with the SEC by Mercantile Bankshares are available free of charge from Mercantile Bankshares Corporation, 2 Hopkins Plaza, P.O. Box 1477, Baltimore, Maryland 21203, Attention: Investor Relations.

The directors, executive officers, and certain other members of management and employees of Mercantile Bankshares Corporation are participants in the solicitation of proxies in favor of the merger from the shareholders of Mercantile Bankshares Corporation. Information about the directors and executive officers of Mercantile Bankshares Corporation is set forth in the proxy statement for its 2006 annual meeting of shareholders, which was filed with the SEC on March 29, 2006. Additional information regarding the interests of such participants is included in the proxy statement/prospectus filed with the SEC.

Page 31

Appendix to Financial Supplement

The PNC Financial Services Group, Inc.

Adjusted Condensed Consolidated Income Statement Reconciliations (Unaudited) (a)


*For the year ended December 31, 2006* *In millions*	PNC As Reported		Adjustments (b)			BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (c)		PNC As Adjusted
Net Interest Income
Interest income	$	4,612				$	(16	)			$	4,596
Interest expense		2,367					(6	)				2,361

Net interest income		2,245					(10	)				2,235
Provision for credit losses		124										124

Net interest income less provision for credit losses		2,121					(10	)				2,111

Noninterest Income
Asset management		1,420	$	10			(1,036	)	$	144		538
Other		4,907		(1,834	)		(51	)				3,022

Total noninterest income		6,327		(1,824	)		(1,087	)		144		3,560

Noninterest Expense
Compensation and benefits		2,432		(44	)		(523	)				1,865
Other		2,011		(47	)		(242	)				1,722

Total noninterest expense		4,443		(91	)		(765	)				3,587

Income before minority interest and income taxes		4,005		(1,733	)		(332	)		144		2,084
Minority interest in income of BlackRock		47		18			(65	)
Income taxes		1,363		(663	)		(130	)		7		577

Net income	$	2,595	$	(1,088	)	$	(137	)	$	137	$	1,507


*For the year ended December 31, 2005* *In millions*	PNC As Reported		BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (d)			PNC As Adjusted
Net Interest Income
Interest income	$	3,734	$	(20	)				$	3,714
Interest expense		1,580		(8	)					1,572

Net interest income		2,154		(12	)					2,142
Provision for credit losses		21								21

Net interest income less provision for credit losses		2,133		(12	)					2,121

Noninterest Income
Asset management		1,443		(1,143	)	$	163			463
Other		2,730		(71	)					2,659

Total noninterest income		4,173		(1,214	)		163			3,122

Noninterest Expense
Compensation and benefits		2,393		(595	)					1,798
Other		1,913		(258	)					1,655

Total noninterest expense		4,306		(853	)					3,453

Income before minority interest and income taxes		2,000		(373	)		163			1,790
Minority interest in income of BlackRock		71		(71	)
Income taxes		604		(150	)		11			465

Net income	$	1,325	$	(152	)	$	152		$	1,325

(a)

This adjusted condensed consolidated income statement reconciliation is provided for informational purposes only and reflects historical consolidated financial information of PNC (1) with amounts adjusted for the impact of certain significant 2006 items and (2) as if we had recorded our investment in BlackRock on the equity method for all periods presented. This reconciliation is from the reported GAAP amounts shown on pages 1 and 3 of the Financial Supplement to the corresponding adjusted amounts shown on pages 2 and 4 of the Financial Supplement. We have provided these adjusted amounts and reconciliations so that shareholders, investor analysts, regulators and others will be better able to evaluate the impact of certain significant items on our GAAP results for these periods, in addition to providing a basis of comparability for the impact of BlackRock. This information supplements our results as reported in accordance with GAAP and should not be viewed in isolation from, or as a substitute for, our GAAP results. The absence of other adjustments is not intended to imply that there could not have been other similar types of adjustments, but any such adjustments would not have been similar in magnitude to the amount of the adjustments shown. Our third quarter 2006 Form 10-Q includes additional information regarding our BlackRock/Merrill Lynch Investment Managers ("MLIM") transaction accounting, securities portfolio rebalancing and mortgage loan portfolio repositioning.

(b)	Includes the impact of the following items, all on a pretax basis: $2,078 million gain on BlackRock/MLIM transaction, $196 million securities portfolio rebalancing loss, $101 million of BlackRock/MLIM transaction integration costs, and $48 million mortgage loan portfolio repositioning loss.

(c)	BlackRock investment revenue represents PNC's ownership interest in earnings of BlackRock excluding our share of pretax BlackRock/MLIM transaction integration costs totaling $101 million. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

(d)	BlackRock investment revenue represents PNC's approximately 70% ownership interest in earnings of BlackRock at December 31, 2005. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

Page A1

Appendix to Financial Supplement (continued)

The PNC Financial Services Group, Inc.

Adjusted Condensed Consolidated Income Statement Reconciliations (Unaudited) (a)


*For the three months ended December 31, 2006* *In millions*	PNC As Reported		BlackRock Equity Method - BlackRock/MLIM Transaction Integration Costs (b)			PNC As Adjusted



Net Interest Income
Interest income	$	1,217				$	1,217
Interest expense		651					651

Net interest income		566					566
Provision for credit losses		42					42

Net interest income less provision for credit losses		524					524

Noninterest Income
Asset management		149	$	10			159
Other		820					820

Total noninterest income		969		10			979

Noninterest Expense
Compensation and benefits		497					497
Other		472					472

Total noninterest expense		969					969

Income before income taxes		524		10			534
Income taxes		148		2			150

Net income	$	376	$	8		$	384


*For the three months ended September 30, 2006* *In millions*	PNC As Reported		Adjustments (c)			BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (d)		PNC As Adjusted


Net Interest Income
Interest income	$	1,203				$	(5	)			$	1,198
Interest expense		636					(2	)				634

Net interest income		567					(3	)				564
Provision for credit losses		16										16

Net interest income less provision for credit losses		551					(3	)				548

Noninterest Income
Asset management		381					(302	)	$	43		122
Other		2,562	$	(1,834	)		(18	)				710

Total noninterest income		2,943		(1,834	)		(320	)		43		832

Noninterest Expense
Compensation and benefits		659		(44	)		(154	)				461
Other		508		(28	)		(69	)				411

Total noninterest expense		1,167		(72	)		(223	)				872

Income before minority interest and income taxes		2,327		(1,762	)		(100	)		43		508
Minority interest in income of BlackRock		6		14			(20	)
Income taxes		837		(672	)		(38	)		1		128

Net income	$	1,484	$	(1,104	)	$	(42	)	$	42	$	380

(a)	See note (a) on page A1.

(b)	BlackRock recorded $51 million pretax ($32 million after-tax) of BlackRock/MLIM transaction integration costs for the fourth quarter of 2006. PNC incurred approximately 34%, or $10 million, of these costs under the equity method.

(c)	Includes the impact of the following items, all on a pretax basis: $2,078 million gain on BlackRock/MLIM transaction, $196 million securities portfolio rebalancing loss, $72 million of BlackRock/MLIM transaction integration costs, and $48 million mortgage loan portfolio repositioning loss.

(d)

BlackRock investment revenue represents PNC's approximately 69% ownership interest in earnings of BlackRock for the third quarter of 2006, excluding pretax BlackRock/MLIM transaction integration costs totaling $72 million. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

Page A2

Appendix to Financial Supplement (continued)

The PNC Financial Services Group, Inc.

Adjusted Condensed Consolidated Income Statement Reconciliations (Unaudited) (a)


*For the three months ended June 30, 2006* *In millions*	PNC As Reported		BlackRock/MLIM Transaction Integration Costs			BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (b)		PNC As Adjusted


Net Interest Income
Interest income	$	1,126				$	(6	)			$	1,120
Interest expense		570					(2	)				568

Net interest income		556					(4	)				552
Provision for credit losses		44										44

Net interest income less provision for credit losses		512					(4	)				508

Noninterest Income
Asset management		429					(349	)	$	49		129
Other		801					(12	)				789

Total noninterest income		1,230					(361	)		49		918

Noninterest Expense
Compensation and benefits		634	$	3			(180	)				457
Other		511		(16	)		(71	)				424

Total noninterest expense		1,145		(13	)		(251	)				881

Income before minority interest and income taxes		597		13			(114	)		49		545
Minority interest in income of BlackRock		19		3			(22	)
Income taxes		197		5			(46	)		3		159

Net income	$	381	$	5		$	(46	)	$	46	$	386


*For the three months ended March 31, 2006* *In millions*	PNC As Reported		BlackRock/MLIM Transaction Integration Costs			BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (c)		PNC As Adjusted


Net Interest Income
Interest income	$	1,066				$	(5	)			$	1,061
Interest expense		510					(2	)				508

Net interest income		556					(3	)				553
Provision for credit losses		22										22

Net interest income less provision for credit losses		534					(3	)				531

Noninterest Income
Asset management		461					(385	)	$	52		128
Other		724					(21	)				703

Total noninterest income		1,185					(406	)		52		831

Noninterest Expense
Compensation and benefits		642	$	(3	)		(189	)				450
Other		520		(3	)		(102	)				415

Total noninterest expense		1,162		(6	)		(291	)				865

Income before minority interest and income taxes		557		6			(118	)		52		497
Minority interest in income of BlackRock		22		1			(23	)
Income taxes		181		2			(46	)		3		140

Net income	$	354	$	3		$	(49	)	$	49	$	357

(a)	See note (a) on page A1.

(b)

BlackRock investment revenue represents PNC's approximately 69% ownership interest in earnings of BlackRock for the second quarter of 2006, excluding pretax BlackRock/MLIM transaction integration costs totaling $13 million. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

(c)

BlackRock investment revenue represents PNC's approximately 69% ownership interest in earnings of BlackRock for the first quarter of 2006, excluding pretax BlackRock/MLIM transaction integration costs totaling $6 million. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

Page A3

Appendix to Financial Supplement (continued)

The PNC Financial Services Group, Inc.

Adjusted Condensed Consolidated Income Statement Reconciliation (Unaudited) (a)


*For the three months ended December 31, 2005* *In millions*	PNC As Reported		BlackRock Deconsolidation and Other Adjustments			BlackRock Equity Method (b)		PNC As Adjusted


Net Interest Income
Interest income	$	1,034	$	(7	)			$	1,027
Interest expense		479		(2	)				477

Net interest income		555		(5	)				550
Provision for credit losses		24							24

Net interest income less provision for credit losses		531		(5	)				526

Noninterest Income
Asset management		431		(354	)	$	51		128
Other		723		(14	)				709

Total noninterest income		1,154		(368	)		51		837

Noninterest Expense
Compensation and benefits		633		(182	)				451
Other		494		(75	)				419

Total noninterest expense		1,127		(257	)				870

Income before minority interest and income taxes		558		(116	)		51		493
Minority interest in income of BlackRock		22		(22	)
Income taxes		181		(46	)		3		138

Net income	$	355	$	(48	)	$	48	$	355

(a)	See note (a) on page A1.

(b)	BlackRock investment revenue represents PNC’s approximately 70% ownership interest in earnings of BlackRock for the fourth quarter of 2005. The income taxes amount represents additional income taxes recorded by PNC related to BlackRock earnings.

Page A4