The PNC Financial Services Group, Inc.
Fourth
Quarter 2007
Earnings Conference Call
January 17, 2008
Exhibit 99.2

This presentation contains 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
in
the
Appendix,
which
is
included
in
the
version
of
the
presentation
materials
posted
on
our
corporate
website
at
www.pnc.com/investorevents.
We
provide
greater
detail
regarding
these
factors
in
our
2006
Form
10-K,
including
in
the
Risk
Factors
and
Risk
Management sections, and in our third quarter 2007 Form 10-Q and other SEC reports (accessible on the SEC’s website at www.sec.gov and on or
through our corporate website at www.pnc.com/secfilings).
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 of this
presentation.
We
do
not
assume
any
duty
and
do
not
undertake
to
update
those
statements.
In this presentation, we will sometimes refer to adjusted results to help illustrate the impact of the deconsolidation of BlackRock near the end of
third quarter 2006 and the impact of certain types of items.  Adjusted results reflect, as applicable, the following types of adjustments:  (1) 2006
and
earlier
periods
reflect
the
impact
of
the
deconsolidation
of
BlackRock
by
adjusting
as
if
we
had
recorded
our
BlackRock
investment
on
the
equity
method prior to its deconsolidation;  (2) adjusting 2006 to exclude the impact of the third quarter 2006 gain on the BlackRock/MLIM transaction and
losses
on
the
repositioning
of
PNC’s
securities
and
mortgage
loan
portfolios;
(3)
adjusting
fourth
quarter
2006
and
the
2007
periods
to
exclude
the
net
mark-to-market
adjustments
on
PNC’s
remaining
BlackRock
LTIP
shares
obligation
and,
as
applicable,
the
gain
PNC
recognized
in
first
quarter
2007
in
connection
with
the
company’s
transfer
of
BlackRock
shares
to
satisfy
a
portion
of
its
BlackRock
LTIP
shares
obligation;
(4)
adjusting
all
2007 and 2006 periods to exclude, as applicable, integration costs related to acquisitions and to the BlackRock/MLIM transaction;  (5) adjusting
2007
periods,
as
applicable,
for
the
fourth
quarter
2007
Visa
litigation
charge;
and
(6)
adjusting,
as
appropriate,
for
the
tax
impact
of
these
adjustments.  We have provided these adjusted amounts and reconciliations 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, in addition to providing a basis of comparability for the impact of the
BlackRock
deconsolidation
given
the
magnitude
of
the
impact
of
deconsolidation
on
various
components
of
our
income
statement
and
balance
sheet.
We
believe
that
information
as
adjusted
for
the
impact
of
the
specified
items
may
be
useful
due
to
the
extent
to
which
these
items
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 the amount of the adjustments shown.  In certain discussions, we may also provide revenue information 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
taxable investments.  We believe this adjustment may be useful when comparing yields and margins for all earning assets.
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, is qualified by GAAP reconciliation information available on our corporate website at www.pnc.com under “About PNC–Investor Relations.”
Cautionary Statement Regarding Forward-Looking
Information and Adjusted Information

Strong organic client growth
Expenses well-contained
Solid business segment results in an uncertain time
Asset quality migrating, as expected, and at a manageable pace
Well-positioned balance sheet
Successful Mercantile integration
Unprecedented market volatility impacts 4Q07 results
2008 -
Focus on maximizing the franchise
2007 Performance Leaves PNC
Well-Positioned for the Future
Execution Results in a Good Year Despite a Difficult Environment

Key Take-Aways
Executing on Our Strategy Delivers
Differentiated Results
Delivered solid results with diverse revenue streams in a
period of extreme market volatility
Continued to create positive operating leverage on a full
year adjusted basis²
Maintained a moderate risk profile and balance sheet
flexibility
(1)
Adjusted fourth quarter 2007 and full year 2007 earnings are reconciled to GAAP earnings in the Appendix.
(2)
GAAP basis operating leverage for the full year 2007 period was negative primarily due to the impact of the 2006 gain from the
BlackRock/MLIM transaction and is reconciled in the Appendix.
2007
4Q07
$5.05
$1.07
Adjusted diluted EPS¹
$4.35
$0.52
Reported diluted EPS

$7
$6
$5
$4
$3
$2
$1
$0
+10%
+34%
+25%
+18%
Growing High Quality, Diverse
Revenue Streams
Total Revenue Growth
(1)
Adjusted amounts are reconciled to GAAP amounts in the Appendix.
(2)
Unadjusted 2006 mix:  noninterest income 74%, deposit net interest income 16%, loan net interest income 10%.
Unadjusted 2007 mix:  noninterest income 56%, deposit net interest income 27%, loan net interest income 17%.
(3)
Unadjusted % change: total revenue (22%), noninterest income (40%), deposit net interest income 34%, loan net interest income 24%.
2007 vs 2006
1,3
2006 Mix
2006 Mix
Adjusted Revenue Mix for the Year Ended
1,2
2007 Mix
2007 Mix
Noninterest
Income
62%
Deposit NII
23%
Loan NII
15%
Noninterest
Income
57%
Deposit NII
27%
Loan NII
16%

$0
$1
$2
$3
$4
$5
$6
$7
Revenue
+9%
Creating Positive Operating Leverage
Growing Revenues Faster Than Expenses
Adjusted Revenue
(as reported
$5.5 billion, $6.3 billion, $8.6 billion, $6.7 billion for 2004,
2005, 2006, 2007, respectively)
Adjusted Noninterest
Expense
(as reported $3.7 billion, $4.3 billion, $4.4 billion, $4.3 billion for 2004, 2005, 2006, 2007, respectively)
Adjusted Net Income
(as reported $1.2 billion, $1.3 billion, $2.6 billion, $1.5 billion for 2004, 2005, 2006, 2007, respectively)
$1.2
$1.3
$1.5
(1)
As reported: revenue 24%, expense 9%, operating leverage 15%, net income 47%. 
(2)
As reported: revenue (22%), expense (3%), operating leverage (19%), net income (43%). 
(3)
Adjusted amounts are reconciled to GAAP amounts in the Appendix.
2004
2005
2006
Expense
+7%
Net Income
+12%
Compound Annual Growth
(2004-2006, as adjusted)
1,3
Revenue
+18%
Expense
+15%
Net Income
+12%
2006-2007
As adjusted
2,3
Operating
Leverage
+2%
Operating
Leverage
+3%
$1.7
2007

Maintaining a Moderate Risk Profile
Credit decisions driven by
risk-adjusted returns
Minimal exposure to
subprime mortgages, high-
yield bridge and leveraged
finance loans
Relatively low commercial
real estate exposure
Highly granular portfolio
Credit quality migrating at
a manageable pace
Asset Quality
Active balance sheet
management style
Duration of equity of 2.1
years
Very liquid balance sheet
Low loans to deposits ratio
with a low cost deposit
base
Relatively large securities
book
High fee income to total
revenue
Interest Rate Risk
Shift to Tier 1 capital
benchmark
Earnings growth creates
capital flexibility
Dividends
Share repurchase, where
appropriate
Access to capital markets
Capital Management

Cautionary Statement Regarding
Forward-Looking Information
Appendix
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,”
“will,”
“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 third quarter 2007 Form 10-Q and 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 on or through our corporate website at www.pnc.com/secfilings.
•Our businesses and financial results are affected by business and economic conditions, both generally and specifically in the principal markets in
which we operate.  In particular, our businesses and financial results may be impacted by:
•Changes
in
interest
rates
and
valuations
in
the
debt,
equity
and
other
financial
markets.
•Disruptions in the liquidity and other functioning of financial markets, including such disruptions in the markets for real estate and other
assets commonly securing financial products.
•Actions by the Federal Reserve and other government agencies, including those that impact money supply and market interest rates.
•Changes in our customers’, suppliers’
and other counterparties’
performance in general and their creditworthiness in particular.
•Changes in customer preferences and behavior, whether as a result of changing business and economic conditions or other factors.
•A continuation of recent turbulence in significant portions of the global financial markets could impact our performance, both directly by affecting
our revenues and the value of our assets and liabilities and indirectly by affecting the economy generally.
•Our operating results are affected by our liability to provide shares of BlackRock common stock to help fund certain BlackRock long-term incentive
plan (“LTIP”) programs, as our LTIP liability is adjusted quarterly (“marked-to-market”) based on changes in BlackRock’s common stock price and
the number of remaining committed shares, and we 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
could affect our financial performance over the next several years.

•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
of
the
regulatory
examination
process,
our
failure
to
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,
education
lending,
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, derivatives, 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
capital
and
other
financial
markets
generally
or
on
us
or
on
our
customers,
suppliers
or
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 filings with the SEC, including in the Risk Factors sections of
BlackRock’s reports.  BlackRock’s SEC filings are accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com.
We
grow
our
business
from
time
to
time
by
acquiring
other
financial
services
companies,
including
our
pending
Sterling
Financial
Corporation
(“Sterling”)
acquisition.
Acquisitions
in
general
present
us
with
risks
in
addition
to
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 to PNC following the acquisition and integration of the acquired
business into ours and may result in additional future costs 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 on the earnings projections made by analysts who cover
that company.  The analysts’
opinions, estimates or forecasts (and therefore the consensus earnings estimates) are theirs alone, are not those of
PNC or its management, and may not reflect PNC’s, Sterling’s or other company’s actual or anticipated results.
Cautionary Statement Regarding
Forward-Looking Information (continued)
Appendix

The PNC Financial Services Group, Inc. and Sterling Financial Corporation (“Sterling”) will be filing 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 TO BE FILED WITH THE SEC IN CONNECTION WITH THE MERGER OR
INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS BECAUSE THEY WILL CONTAIN
IMPORTANT INFORMATION.
Investors will be able to obtain these documents free of charge at the SEC’s web site at http://www.sec.gov.  In
addition, documents filed with the SEC by The PNC Financial Services Group, Inc. will be available free of charge
from Shareholder Relations at (800) 843-2206.  Documents filed with the SEC by Sterling will be available free of
charge from Sterling by contacting Shareholder Relations at (877) 248-6420.
The directors, executive officers, and certain other members of management and employees of Sterling are
participants in the solicitation of proxies in favor of the merger from the shareholders of Sterling.  Information
about the directors and executive officers of Sterling is included in the proxy statement for its May 8, 2007
annual meeting of shareholders, which was filed with the SEC on April 2, 2007.  Additional information regarding
the
interests
of
such
participants
will
be
included
in
the
proxy
statement/prospectus
and
the
other
relevant
documents filed with the SEC when they become available.
Additional Information About The PNC/Sterling
Financial Corporation Transaction
Appendix

Non-GAAP to GAAP
Reconcilement
Earnings Summary
Appendix
THREE MONTHS ENDED
In millions, except per share data
Adjustments,
Net
Diluted
Adjustments,
Net
Diluted
Adjustments,
Net
Diluted
Pretax
Income
EPS
Pretax
Income
EPS
Pretax
Income
EPS
Net income, as reported
$178
$0.52
$407
$1.19
$376
$1.27
Adjustments:
   BlackRock LTIP (a)
$128
84
.24
     
$50
32
       
.09
     
$12
7
         
.02
     
   Visa indemnification (b)
82
53
.16
     
   Integration costs (c)
79
                
50
       
.15
     
43
                
30
       
.09
     
10
8
         
.03
     
Net income, as adjusted
$365
$1.07
$469
$1.37
$391
$1.32
YEAR ENDED
Adjustments,
Net
Diluted
Adjustments,
Net
Diluted
In millions, except per share data
Pretax
Income
EPS
Pretax
Income
EPS
Net income, as reported
$1,467
$4.35
$2,595
$8.73
Adjustments:
  BlackRock LTIP (a)
$127
83
       
.24
     
$12
7
         
.02
  Visa indemnification (b)
82
53
       
.16
     
  Integration costs (c)
151
              
99
       
.30
     
101
47
       
.16
     
  Gain on BlackRock/MLIM transaction (d)
(2,078)
(1,293)
 
(4.36)
  
  Securities portfolio rebalancing loss (d)
196
127
     
.43
     
  Mortgage loan portfolio repositioning loss (d)
48
31
       
.10
     
Net income, as adjusted
$1,702
$5.05
$1,514
$5.08
(d) Included in noninterest income on a pretax basis.
December 31, 2006
(b)
Our
payment
services
business
issues
and
acquires
credit
and
debit
card
transactions
through
Visa
U.S.A.
Inc.
card
association
or
its
affiliates
(“Visa”).
In
October
2007,
Visa
completed
a
restructuring
and
issued
shares
of
Visa
Inc.
common
stock
to
its
financial
institution
members
in
contemplation
of
its
initial
public
offering
(“IPO”)
currently
anticipated
in
the
first
quarter
of
2008
(the
“Visa
Reorganization”).
As
part
of
the
Visa
Reorganization,
we
received
our
proportionate
share
of
a
class
of
Visa
Inc.
common
stock
allocated
to
the
U.S.
members.
Visa
expects
that
a
portion
of
these
shares
will
be
redeemed
for
cash
out
of
the
proceeds
of
the
IPO.
The
U.S.
members
are
obligated
to
indemnify
Visa
for
judgments
and
settlements
related
to
specified
litigation.
Visa
will
set
aside
a
portion
of
the
proceeds
from
the
IPO
in
an
escrow
account
for the benefit of the U.S. member financial institutions to fund the expenses of the litigation as well as the members' proportionate share of any judgments or settlements that may arise out of the litigation.
December 31, 2007
September 30, 2007
December 31, 2006
December 31, 2007
(a)
Includes
the
impact
of
the
gain
recognized
in
connection
with
PNC's
transfer
of
BlackRock
shares
to
satisfy
a
portion
of
our
BlackRock
LTIP
shares
obligation
and
the
net
mark-to-market
adjustment
on
our
remaining BlackRock LTIP shares obligation, as applicable.
In
accordance
with
GAAP,
we
recorded
a
liability
and
operating
expense
totaling
$82
million
before
taxes
in
the
fourth
quarter
of
2007
representing
our
estimate
of
the
fair
value
of
our
indemnification
obligation
for
potential
losses
arising
from
this
litigation.
Our
estimate
is
based
on
publicly
available
information
and
other
information
made
available
to
all
of
the
affected
Visa
members
and
does
not
reflect
any
direct
knowledge
of
the
relative
strengths
and
weaknesses
of
the
litigation
still
pending
or
the
status
of
any
on-going
settlement
discussions.
We
believe
that
the
IPO
will
be
completed
and
cash
will
be
available
through
the
escrow
to
satisfy
litigation
settlements.
In
addition,
based
on
estimates
provided
by
Visa
regarding
its
planned
IPO,
we
believe
that
our
ownership
interest
in
Visa
has
a
value
significantly
in
excess
of
our
indemnification
liability.
Our
Visa
shares
will
not
generally
be
transferable
until
they
can
be
converted
into
shares
of
the
publicly
traded
class
of
stock,
which
cannot
happen
until
the
later
of
three
years
after
the
IPO
or
settlement
of all of the specified litigation.
(c)
In
addition
to
integration
costs
related
to
recent
or
pending
PNC
acquisitions
reflected
in
the
2007
periods,
the
first
three
quarters
of
2007
and
all
2006
periods
include
BlackRock/MLIM
integration
costs.
BlackRock/MLIM
integration
costs
recognized
by
PNC
in
the
first
three
quarters
of
2007
and
the
fourth
quarter
of
2006
were
included
in
noninterest
income
as
a
negative
component
of
the
"Asset
management"
line
item, which includes the impact of our equity earnings from our investment in BlackRock. For the first nine months of 2006, BlackRock/MLIM transaction integration costs were included in noninterest expense.

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
For the year ended
Appendix
Year ended
In millions
As Reported 
Adjustments
As Adjusted (a) 
As Reported 
Adjustments
As Adjusted (b)
Net interest income
$2,915
$2,915
$2,245
($10)
$2,235
Net interest income:
% Change As
Reported
% Change As
Adjusted
Loans
1,110
1,110
895
(10)
885
24%
25%
Deposits
1,805
1,805
1,350
1,350
34%
34%
Noninterest
Income
3,790
$131
3,921
6,327
(2,755)
3,572
(40%)
10%
Total revenue
6,705
131
6,836
8,572
(2,765)
5,807
(22%)
18%
Loan net interest income as a % of total revenue
16.6%
16.2%
10.4%
15.2%
Deposit net interest income as a % of total revenue
26.9%
26.4%
15.7%
23.2%
Noninterest
income as a % of total revenue
56.5%
57.4%
73.8%
61.5%
Provision for credit losses
315
(45)
270
124
124
Noninterest
income
3,790
131
3,921
6,327
(2,755)
3,572
Noninterest
expense
4,296
(184)
4,112
4,443
(856)
3,587
(3%)
15%
Income before minority interest
and income taxes
2,094
360
2,454
4,005
(1,909)
2,096
Minority interest in income
of BlackRock
47
(47)
Income taxes
627
125
752
1,363
(781)
582
Net income
$1,467
$235
$1,702
$2,595
($1,081)
$1,514
(43%)
12%
Operating Leverage -
Year Ended
As Reported
As Adjusted
Total revenue
(22%)
18%
Noninterest expense
(3%)
15%
Operating leverage 
(19%)
3%
(a)
Amounts
adjusted
to
exclude
the
impact
of
the
following
pretax
items:
(1)
the
gain
of
$83
million
recognized
in
connection
with
PNC's
transfer
of
BlackRock
shares
to
satisfy
a
portion
of
our
BlackRock
LTIP
shares
obligation,
(2)
the
net
mark-to-market
adjustment
totaling
$210
million
on
our
remaining
BlackRock
LTIP
shares
obligation,
(3)
acquisition
integration
costs
totaling
$151 million, and (4) Visa indemnification charge of $82 million. The net tax impact of these items is reflected in the adjustment to income taxes.
(b)
Amounts
adjusted
to
exclude
the
impact
of
the
following
pretax
items:
$2,078
million
gain
on
BlackRock/MLIM
transaction,
$196
million
securities
portfolio
rebalancing
loss,
$101
million
of
BlackRock/MLIM
transaction
integration
costs,
$48
million
mortgage
loan
portfolio
repositioning
loss,
and
$12
million
net
loss
related
to
our
BlackRock
LTIP
shares
obligation.
The
net
tax
impact of these items is reflected in the adjustment to income taxes.
2006 to 2007 Change
December 31, 2007
December 31, 2006

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
For the three months ended
Appendix
For the three months ended December 31, 2007
PNC
PNC
In millions
As Reported
Adjustments (a)
As Adjusted
Reported
Adjusted
Net interest income
$793
$793
Loan net interest income
304
304
3%
3%
Deposit net interest income
489
489
5%
5%
Provision for credit losses
188
($45)
143
Net interest income less provision for credit losses
605
(45)
650
Asset management
225
(1)
224
Other
609
128
737
Total noninterest
income
834
127
961
(16%)
(8%)
Compensation and benefits
553
(10)
543
Other
660
(107)
553
Total noninterest
expense
1,213
(117)
1,096
10%
4%
Income before income taxes
226
289
515
Income taxes
48
102
150
Net income
$178
$187
$365
(56%)
(22%)
For the three months ended September 30, 2007
PNC
PNC
In millions
As Reported
Adjustments (b)
As Adjusted
Net interest income
$761
$761
Loan net interest income
294
294
Deposit net interest income
467
467
Provision for credit losses
65
65
Net interest income less provision for credit losses
696
696
Asset management
204
$2
206
Other
786
50
836
Total noninterest
income
990
52
1,042
Compensation and benefits
553
(16)
537
Other
546
(25)
521
Total noninterest expense
1,099
(41)
1,058
Income before income taxes
587
93
680
Income taxes
180
31
211
Net income
$407
$62
$469
% Change vs. Sept 30, 2007
(a)
Amounts
adjusted
to
exclude
the
impact
of
the
following
items
on
a
pretax
basis:
$128
million
net
loss
related
to
our
BlackRock/LTIP
shares
obligation,
$82
million
Visa indemnification charge, and $79 million of acquisition integration costs.  The net tax impact of these items is reflected in the adjustment to income taxes.
(b)
Amounts
adjusted
to
exclude
the
impact
of
the
following
items
on
a
pretax
basis:
$50
million
net
loss
related
to
our
BlackRock/LTIP
shares
obligation
and
$43
million
of acquisition integration costs.  The net tax impact of these items is reflected in the adjustment to income taxes.

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
2004 to 2007
Appendix
For the year ended December 31, 2007
PNC
PNC
In millions
As Reported 
Adjustments (a)
As Adjusted
Net interest income
$2,915
$2,915
Provision for credit losses
315
$(45)
270
Noninterest income
3,790
131
3,921
Noninterest expense
4,296
(184)
4,112
     Income before income taxes
2,094
360
2,454
Income taxes
627
125
752
     Net income
$1,467
$235
$1,702
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
124
Noninterest income
6,327
$(1,812)
(1,087)
$144
3,572
Noninterest expense
4,443
(91)
(765)
3,587
Income before minority interest and income taxes
4,005
(1,721)
(332)
144
2,096
Minority interest in income of BlackRock
47
18
(65)
Income taxes
1,363
(658)
(130)
7
582
   Net income
$2,595
$(1,081)
$(137)
$137
$1,514
(a)
Includes
the
impact
of
the
following
pretax
items:
$2,078
million
gain
on
BlackRock/MLIM
transaction,
$196
million
securities
portfolio
rebalancing
loss,
$101
million
of
BlackRock/MLIM
transaction
integration
costs,
$48
million
mortgage
loan
portfolio
repositioning
loss,
and
$12
million
net
loss
related
to
our
BlackRock
LTIP
shares
obligation.  The net tax impact of these items is reflected in the adjustment to income taxes.
(a)
Amounts
adjusted
to
exclude
the
impact
of
the
following
pretax
items:
(1)
the
gain
of
$83
million
recognized
in
connection
with
PNC's
transfer
of
BlackRock
shares
to
satisfy
a
portion
of
our
BlackRock
LTIP
shares
obligation,
(2)
the
net
mark-to-market
adjustment
totaling
$210
million
on
our
remaining
BlackRock
LTIP
shares
obligation,
(3)
acquisition
integration
costs
totaling
$151
million,
and
(4)
Visa
indemnification
charge
of
$82
million.
The
net
tax
impact
of
these
items
is
reflected
in
the
adjustment
to income taxes.

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
2004 to 2007 (continued)
Appendix
For the year ended December 31, 2005
BlackRock
PNC
Deconsolidation and
BlackRock
PNC
In millions
As Reported
Other Adjustments
Equity Method
As Adjusted
Net interest income
$2,154
$(12)
$2,142
Provision for credit losses
21
21
Noninterest income
4,173
(1,214)
$163
3,122
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
For the year ended December 31, 2004
BlackRock
PNC
Deconsolidation and
BlackRock
PNC
In millions
As Reported
Other Adjustments
Equity Method
As Adjusted
Net interest income
$1,969
$(14)
$1,955
Provision for credit losses
52
52
Noninterest income
3,572
(745)
$101
2,928
Noninterest expense
3,712
(564)
3,148
Income before minority interest and income taxes
1,777
(195)
101
1,683
Minority interest in income of BlackRock
42
(42)
Income taxes
538
(59)
7
486
   Net income
$1,197
$(94)
$94
$1,197

Non-GAAP to GAAP
Reconcilement
Income Statement Summary –
2004 to 2007 (continued)
Appendix
% Change
In millions
2004
2005
2006
2007
2004-2006 CAGR
2006-2007
Adjusted net interest income
$1,955
$2,142
$2,235
$2,915
Adjusted noninterest income
2,928
3,122
3,572
3,921
Adjusted total revenue
4,883
5,264
5,807
6,836
9%
18%
Adjusted noninterest expense
3,148
3,453
3,587
4,112
7%
15%
Adjusted net income
1,197
                
1,325
                            
1,514
                        
1,702
                
12%
12%
Adjusted operating leverage
2%
3%
% Change
In millions
2004
2005
2006
2007
2004-2006 CAGR
2006-2007
Net interest income, as reported
$1,969
$2,154
$2,245
$2,915
Noninterest income, as reported
3,572
4,173
6,327
3,790
Total revenue, as reported
5,541
6,327
8,572
6,705
24%
(22%)
Noninterest expense, as reported
3,712
4,306
4,443
4,296
9%
(3%)
Net income, as reported
1,197
                
1,325
                            
2,595
                        
1,467
                
47%
(43%)
Operating leverage, as reported
15%
(19%)
For the year ended December 31, as adjusted
For the year ended December 31, as reported