Slide presentation and related material for the 2007 Annual Meeting

Cautionary Statement Regarding

Forward-Looking Information

This presentation may contain forward-looking statements regarding our outlook or expectations relating to PNC’s future business, operations,

financial condition, financial performance and asset quality. Forward-looking statements are necessarily subject to numerous assumptions,

risks and uncertainties, which change over time.

The forward-looking statements in this presentation are qualified by the factors affecting forward-looking statements identified in the more

detailed

Cautionary

Statement

included

the

Appendix,

which

the

version

the

presentation

materials

posted

our

corporate

website

at www.pnc.com/investorevents. We provide greater detail regarding those factors in our 2006 Form 10-K, including in the Risk Factors and

Risk Management sections, and in our other SEC reports (accessible on the SEC’s website at www.sec.gov and on or through our corporate

website).

Future events or circumstances may change our outlook or expectations and may also affect the nature of the assumptions, risks and

uncertainties to which our forward-looking statements are subject. The forward-looking statements in this presentation speak only as of the

date

this

presentation.

not

assume

any

duty

and

not

undertake

update

those

statements.

this

presentation,

will

sometimes

refer

adjusted

results

help

illustrate

(1)

the

impact

BlackRock

deconsolidation

near

the

end

third quarter 2006 and the application of the equity method of accounting for our equity investment in BlackRock and (2) the impact of certain

specified 2006 items due to the magnitude of the aggregate of these items. These items include the BlackRock/MLIM transaction gain,

acquisition integration costs, the costs of balance sheet repositionings, and BlackRock LTIP shares obligation losses that we have disclosed

earlier, and PFPC distribution/out-of-pocket revenue and related offsetting expense. We provide details of the adjustments in the Appendix.

We have provided these amounts so that investors, analysts, regulators and others will be better able to evaluate the impact of these items on

our results for the periods presented. We believe that information as adjusted for the impact of the specified items may be useful due to the

extent to which they are not indicative of our ongoing operations as the result of our management activities on those operations. While we

have not provided other adjustments for the periods discussed, this 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 those shown.

This presentation may also include a discussion of other non-GAAP financial measures, which, to the extent not so qualified therein or in the

Appendix,

qualified

GAAP

reconciliation

information

available

our

corporate

website

www.pnc.com

under

“About

PNC

Investor

Relations.”

Cautionary Statement Regarding

Forward-Looking Information

We make statements in this presentation, and we may from time to

time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or

other matters regarding or affecting PNC that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are

typically identified by words such as “believe,”

“expect,”

“anticipate,”

“intend,”

“outlook,”

“estimate,”

“forecast,”

“project”

and other similar words and expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are

made. We do not assume any duty and do not undertake to update our forward-looking statements. Because forward-looking statements are subject to assumptions and

uncertainties, actual results or future events could differ, possibly materially, from those that we anticipated in our forward-looking statements, and future results could differ

materially from our historical performance.

Our forward-looking statements are subject to the following principal risks and uncertainties. We provide greater detail regarding some of these factors in our Form 10-K for the

year ended December 31, 2006, including in the Risk Factors and Risk Management sections of that report, and in our other SEC reports. Our forward-looking statements may also

be subject to other risks and uncertainties, including those that we may discuss elsewhere in this presentation or in our filings with the SEC, accessible on the SEC’s website at

www.sec.gov

and

through

our

corporatewebsite

www.pnc.com

under

“About

PNC

–

Investor

Relations

–

Financial

Information.”

•

Our business and operating results are affected by business and economic conditions generally or specifically in the principal markets in which we do business. We are

affected by changes in our customers’

and counterparties’

financial performance, as well as changes in customer preferences and behavior, including as a result of

changing business and economic conditions.

•

The value of our assets and liabilities, as well as our overall financial performance, are also affected by changes in interest rates or in valuations in the debt and equity

markets. Actions by the Federal Reserve and other government agencies, including those that impact money supply and market interest rates, can affect our activities

and financial results.

Our operating results are affected by our liability to provide shares of BlackRock common stock to help fund BlackRock long-term incentive plan (“LTIP”) programs, as our

LTIP

liability

adjusted

quarterly

(“marked-to-market”)

based

changes

BlackRock’s

common

stock

price

and

the

number

remaining

committed

shares,

and

recognize gain or loss on such shares at such times as shares are transferred for payouts under the LTIP programs.

•

Competition can have an impact on customer acquisition, growth and retention, as well as on our credit spreads and product pricing, which can affect market share,

deposits and revenues.

•

Our ability to implement our business initiatives and strategies, including the final phases of our One PNC initiative, could affect our financial performance over the next

several years.

•

Our ability to grow successfully through acquisitions is impacted by a number of risks and uncertainties related both to the acquisition transactions themselves and to the

integration of the acquired businesses into PNC after closing. These uncertainties continue to be present with respect to the integration of Mercantile Bankshares

Corporation.

Cautionary Statement Regarding

Forward-Looking Information (continued)

•

Legal and regulatory developments could have an impact on our ability to operate our businesses or our financial condition or results of operations or our competitive

position or reputation. Reputational

impacts, in turn, could affect matters such as business generation and retention, our ability to attract and retain management,

liquidity and funding. These legal and regulatory developments could include: (a) the unfavorable resolution of legal proceedings or regulatory and other governmental

inquiries;

(b)

increased

litigation

risk

from

recent

regulatory

and

other

governmental

developments;

(c)

the

results

the

regulatory

examination

process,

our

failure

satisfy the requirements of agreements with governmental agencies, and regulators’

future use of supervisory and enforcement tools; (d) legislative and regulatory

reforms, including changes to laws and regulations involving tax, pension, and the protection of confidential customer information; and (e) changes in accounting

policies and principles.

•

Our business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where appropriate, through

the effective use of third-party insurance and capital management techniques.

•

Our ability to anticipate and respond to technological changes can have an impact on our ability to respond to customer needs and to meet competitive demands.

•

The adequacy of our intellectual property protection, and the extent of any costs associated with obtaining rights in intellectual property claimed by others, can impact

our business and operating results.

•

Our business and operating results can also be affected by widespread natural disasters, terrorist activities or international hostilities, either as a result of the impact on

the

economy

and

financial

and

capital

markets

generally

our

customers,

suppliers

other

counterparties

specifically.

•

Also, risks and uncertainties that could affect the results anticipated in forward-looking statements or from historical performance relating to our equity interest in

BlackRock, Inc. are discussed in more detail in BlackRock’s 2006 Form 10-K, including in the Risk Factors section, and in BlackRock’s other filings with the SEC,

accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com.

In addition, we grow our business from time to time by acquiring

other financial services companies, such as our recent acquisition of Mercantile Bankshares. Acquisitions in

general present us with risks other than those presented by the nature of the business acquired. In particular, acquisitions may be substantially more expensive to complete

(including as a result of costs incurred in connection with the integration of the acquired company) and the anticipated benefits (including anticipated cost savings and strategic

gains) may be significantly harder or take longer to achieve than expected. In some cases, acquisitions involve our entry into new businesses or new geographic or other

markets, and these situations also present risks resulting from our inexperience in these new areas. As a regulated financial institution, our pursuit of attractive acquisition

opportunities could be negatively impacted due to regulatory delays or other regulatory issues. Regulatory and/or legal issues related to the pre-acquisition operations of an

acquired

business

may

cause

reputational

harm

PNC

following

the

acquisition

and

integration

the

acquired

business

into

ours

and

may

result

additional

future

costs

and

expenses arising as a result of those issues.

Any annualized, proforma, estimated, third party or consensus numbers in this presentation are used for illustrative or comparative purposes only and may not reflect actual

results.

Any

consensus

earnings

estimates

are

calculated

based

the

earnings

projections

made

analysts

who

cover

that

company.

The

analysts’

opinions,

estimates

forecasts

(and

therefore

the

consensus

earnings

estimates)

are

theirs

alone,

are

not

those

PNC

its

management,

and

may

not

reflect

PNC’s,

Mercantile’s

other

company’s actual or anticipated results.

Non-GAAP to GAAP

Reconcilement

Appendix

Summary Income Statement

BlackRock

For the year ended December 31, 2006

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Adjustments (a)

Other Adjustments

Equity Method

As Adjusted

Net interest income

$2,245

$(10)

$2,235

Provision for credit losses

124

Noninterest

income

6,327

$(1,982)

(1,087)

$144

3,402

Noninterest

expense

4,443

(261)

(765)

3,417

Income before minority interest and income taxes

4,005

(1,721)

(332)

144

2,096

Minority interest in income of BlackRock

(65)

Income taxes

1,363

(658)

(130)

582

Net income

$2,595

$(1,081)

$(137)

$137

$1,514

(a)

Includes

the

impact

the

following

items,

all

pretax

basis:

$2,078

million

gain

BlackRock/MLIM

transaction,

$196

million

securities

portfolio

rebalancing

loss,

$101

million

integration

costs,

$48

million

mortgage

loan

portfolio

repositioning

loss,

and

$12

million

loss

BlackRock

LTIP

obligation.

Also

included are PFPC distribution/out-of-pocket revenue and related offsetting expense primarily associated with pooled investment fund accounts totaling $170 million.

Non-GAAP to GAAP

Reconcilement

Appendix

Business Earnings Summary

Year Ended

Earnings (Loss)

$ millions

2006

2005

Growth

Retail Banking

$765

$682

12%

Corporate and Institutional Banking

463

480

(4%)

BlackRock (a) (b) (c)

187

$152

23%

PFPC

124

104

19%

Total business segment earnings

1,539

1,418

Other (c) (d)

1,056

(93)

Total consolidated net income

$2,595

$1,325

96%

(a)

(b)

(c)

(d)

Certain prior period amounts have been reclassified to conform with the current period presentation.

PNC’s

ownership

interest

BlackRock

was

approximately

69%-70%

for

2005

and

through

the

first

nine

months

2006.

Effective

September 29, 2006, PNC’s ownership interest in BlackRock dropped to approximately 34%.

These

amounts

have

been

reduced

minority

interest

income

BlackRock,

excluding

MLIM

integration

costs,

totaling

$65

million

and

$71 million for the years ended December 31, 2006 and 2005, respectively.

For

this

PNC

business

segment

reporting

presentation,

integration

costs

incurred

BlackRock

for

the

MLIM

transaction

totaling

$47

million

for

2006

have

been

reclassified

from

BlackRock

“Other”.

These

amounts

are

after-tax

and,

applicable,

net

minority

interest.

“Other”

for

2006

includes

the

after-tax

impact

the

net

gain

the

BlackRock/MLIM

transaction,

MLIM

integration

costs

and

costs

associated with the securities portfolio rebalancing and mortgage loan portfolio repositioning.