Financial Supplement (unaudited) for Third Quarter 2008

EXHIBIT 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2008

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2008

(UNAUDITED)


		Page
Consolidated Results:
Income Statement		1
Balance Sheet		2
Capital Ratios		2
Average Balance Sheet and Supplemental Average Balance Sheet Information		3 -4
Details of Net Interest Margin		5
Selected Income Statement Information and Trading Revenue		6
Details of Loans		7
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit, and Net Unfunded Commitments		8
Details of Nonperforming Assets		9 -10
Business Segment Results:
Business Segment Products and Services		11
Summary of Earnings and Revenue		12
Period-end Employees		12
Retail Banking		13 -15
Corporate & Institutional Banking		16
Global Investment Servicing (formerly, PFPC)		17
Glossary of Terms		18 -20

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on October 16, 2008. 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 United States Securities and Exchange Commission (“SEC”) filings.

Sterling Financial Corporation Acquisition

We completed our acquisition of Sterling Financial Corporation (“Sterling”) on April 4, 2008. Sterling shareholders received an aggregate of approximately $224 million in cash and 4.6 million shares of PNC common stock. PNC converted the Sterling banking charter and financial and customer data onto PNC’s financial and operational systems during August 2008.

Hilliard Lyons Divestiture

On March 31, 2008, we completed the sale of J.J.B. Hilliard, W.L. Lyons, LLC (“Hilliard Lyons”), a Louisville, Kentucky-based wholly-owned subsidiary of PNC and a full-service brokerage and financial services provider, to Houchens Industries, Inc. We recognized an after-tax gain of $23 million in the first quarter of 2008 in connection with this divestiture. Information for the periods presented reflects the reclassification of results for Hilliard Lyons, including the gain on the sale of this business, from the Retail Banking business segment to “Other, including BlackRock.”

Yardville National Bancorp Acquisition

We completed our acquisition of Yardville National Bancorp (“Yardville”) on October 26, 2007 and our financial results include Yardville from that date. PNC issued approximately 3.4 million shares of PNC common stock and paid approximately $156 million in cash as consideration for the acquisition. PNC converted the Yardville banking charter and financial and customer data onto PNC’s financial and operational systems during March 2008.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)


	*Nine months ended*						*Three months ended*
*In millions, except per share data*	September 30 2008			September 30 2007			September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
Interest Income
Loans	$	3,145		$	3,109		$	1,024		$	1,050		$	1,071		$	1,123		$	1,129
Securities available for sale		1,270			1,031			447			419			404			398			366
Other		355			356			103			108			144			149			132

Total interest income		4,770			4,496			1,574			1,577			1,619			1,670			1,627

Interest Expense
Deposits		1,152			1,531			340			362			450			522			531
Borrowed funds		787			843			234			238			315			355			335

Total interest expense		1,939			2,374			574			600			765			877			866

Net interest income		2,831			2,122			1,000			977			854			793			761

Noninterest Income
Fund servicing		695			620			233			234			228			215			208
Asset management		589			559			180			197			212			225			204
Consumer services		472			513			153			149			170			179			177
Corporate services		547			533			198			185			164			180			198
Service charges on deposits		271			258			97			92			82			90			89
Net securities gains (losses)		(34	)		(4	)		(74	)		(1	)		41			(1	)		(2	)
Other		143			477			(133	)		206			70			(54	)		116

Total noninterest income		2,683			2,956			654			1,062			967			834			990

Total revenue		5,514			5,078			1,654			2,039			1,821			1,627			1,751
Provision for credit losses		527			127			190			186			151			188			65
Noninterest Expense
Personnel		1,660			1,587			569			547			544			553			553
Occupancy		274			255			89			90			95			95			87
Equipment		267			227			91			94			82			84			77
Marketing		94			86			38			34			22			29			36
Other		1,004			928			355			350			299			452			346

Total noninterest expense		3,299			3,083			1,142			1,115			1,042			1,213			1,099

Income before income taxes		1,688			1,868			322			738			628			226			587
Income taxes		558			579			74			233			251			48			180

Net income	$	1,130		$	1,289		$	248		$	505		$	377		$	178		$	407

Earnings Per Common Share
Basic	$	3.30		$	3.92		$	.72		$	1.47		$	1.11		$	.53		$	1.21
Diluted	$	3.24		$	3.85		$	.71		$	1.45		$	1.09		$	.52		$	1.19

Average Common Shares Outstanding
Basic		343			329			345			344			339			338			337
Diluted		346			333			348			347			342			341			340

Efficiency		60	%		61	%		69	%		55	%		57	%		75	%		63	%
Noninterest income to total revenue		49	%		58	%		40	%		52	%		53	%		51	%		57	%
Effective tax rate (a)		33.1	%		31.0	%		23.0	%		31.6	%		40.0	%		21.2	%		30.7	%

(a)

The higher effective tax rates for the first quarter and first nine months of 2008 were due to taxes associated with the gain on the sale of Hilliard Lyons. The lower effective tax rates for the third quarter of 2008 and the fourth quarter of 2007 were primarily due to lower pretax income in relation to tax credits and earnings that are not subject to tax.

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
Assets
Cash and due from banks	$	3,060		$	3,525		$	3,934		$	3,567		$	3,318
Federal funds sold and resale agreements (includes $1,007, $1,001, and $1,032 measured at fair value at September 30, 2008, June 30, 2008, and March 31, 2008) (a)		1,826			3,015			2,157			2,729			2,360
Trading securities and other short-term investments		2,866			2,705			3,987			4,129			3,944
Loans held for sale (includes $1,465, $1,604, and $2,068 measured at fair value at September 30, 2008, June 30, 2008, and March 31, 2008) (a)		1,922			2,288			2,516			3,927			3,004
Securities available for sale		31,031			31,032			28,581			30,225			28,430
Loans, net of unearned income of $910, $934, $951, $990, and $986		75,184			73,040			70,802			68,319			65,760
Allowance for loan and lease losses		(1,053	)		(988	)		(865	)		(830	)		(717	)

Net loans		74,131			72,052			69,937			67,489			65,043
Goodwill		8,829			8,824			8,244			8,405			7,836
Other intangible assets		1,092			1,104			1,105			1,146			1,099
Equity investments		6,735			6,376			6,187			6,045			5,975
Other		14,118			11,850			13,343			11,258			10,357

Total assets	$	145,610		$	142,771		$	139,991		$	138,920		$	131,366

Liabilities
Deposits
Noninterest-bearing	$	19,255		$	19,869		$	19,176		$	19,440		$	18,570
Interest-bearing		65,729			64,820			61,234			63,256			59,839

Total deposits		84,984			84,689			80,410			82,696			78,409
Borrowed funds
Federal funds purchased		4,837			7,343			5,154			7,037			6,658
Repurchase agreements		2,611			1,887			2,510			2,737			1,990
Federal Home Loan Bank borrowings		10,466			9,572			9,663			7,065			4,772
Bank notes and senior debt (includes $6, $11, and $11 measured at fair value at September 30, 2008, June 30, 2008, and March 31, 2008) (a)		5,792			5,804			6,842			6,821			7,794
Subordinated debt		5,192			5,169			5,402			4,506			3,976
Other		3,241			2,697			3,208			2,765			2,263

Total borrowed funds		32,139			32,472			32,779			30,931			27,453
Allowance for unfunded loan commitments and letters of credit		127			124			152			134			127
Accrued expenses		2,650			3,388			3,878			4,330			4,077
Other		9,422			4,981			6,341			4,321			5,095

Total liabilities		129,322			125,654			123,560			122,412			115,161

Minority and noncontrolling interests in consolidated entities		2,070			2,009			2,008			1,654			1,666
Shareholders’ Equity
Preferred stock (b)
Common stock - $5 par value
Authorized 800 shares, issued 357, 357, 353, 353, and 353 shares		1,787			1,787			1,764			1,764			1,764
Capital surplus		3,377			3,387			2,603			2,618			2,631
Retained earnings		11,959			11,940			11,664			11,497			11,531
Accumulated other comprehensive loss		(2,230	)		(1,227	)		(779	)		(147	)		(255	)
Common stock held in treasury at cost: 9, 11, 12, 12, and 16 shares		(675	)		(779	)		(829	)		(878	)		(1,132	)

Total shareholders’ equity		14,218			15,108			14,423			14,854			14,539

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	145,610		$	142,771		$	139,991		$	138,920		$	131,366

Capital Ratios
Tier 1 risk-based (c)		8.2	%		8.2	%		7.7	%		6.8	%		7.5	%
Total risk-based (c)		11.9			11.9			11.4			10.3			10.9
Leverage (c)		7.2			7.3			6.8			6.2			6.8
Tangible common equity		3.6			4.3			4.7			4.7			5.2
Common shareholders’ equity to assets		9.4			10.2			10.3			10.7			11.1

(a)	Amounts represent items for which the Corporation has elected the fair value option under SFAS 159.

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

(c)	The ratios as of September 30, 2008 are estimated.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


	*Three months ended*
*In millions*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
Assets
Interest-earning assets:
Securities available for sale
Residential mortgage-backed	$	22,924		$	20,813		$	20,506		$	20,592		$	19,541
Commercial mortgage-backed		5,863			5,838			5,538			4,921			4,177
Asset-backed		3,522			3,363			2,849			2,704			2,454
U.S. Treasury and government agencies		32			47			90			155			281
State and municipal		798			773			411			306			233
Other debt		266			211			84			52			25
Corporate stocks and other		411			385			494			458			381

Total securities available for sale		33,816			31,430			29,972			29,188			27,092
Loans, net of unearned income
Commercial		31,070			30,825			29,147			27,528			26,352
Commercial real estate		9,560			9,340			8,986			8,919			8,272
Lease financing		2,573			2,646			2,484			2,552			2,581
Consumer		20,984			20,558			18,897			18,150			17,954
Residential mortgage		8,875			9,193			9,411			9,605			9,325
Other		286			266			391			400			393

Total loans, net of unearned income		73,348			72,828			69,316			67,154			64,877
Loans held for sale		2,146			2,350			3,607			3,408			2,842
Federal funds sold and resale agreements		2,736			2,528			3,040			2,516			2,163
Other		3,700			4,068			5,384			4,926			4,342

Total interest-earning assets		115,746			113,204			111,319			107,192			101,316
Noninterest-earning assets:
Allowance for loan and lease losses		(1,012	)		(900	)		(852	)		(749	)		(708	)
Cash and due from banks		2,779			2,725			3,027			3,089			3,047
Other		25,486			26,363			27,061			25,418			23,977

Total assets	$	142,999		$	141,392		$	140,555		$	134,950		$	127,632

Supplemental Average Balance Sheet Information (Unaudited)

Trading Assets
Securities (a)	$	2,298		$	2,471		$	3,872		$	3,486		$	3,293
Resale agreements (b)		1,937			1,731			2,129			1,320			1,267
Financial derivatives (c)		1,775			2,028			2,808			1,785			1,389
Loans at fair value (c)		74			92			114			148			164

Total trading assets	$	6,084		$	6,322		$	8,923		$	6,739		$	6,113

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

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

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

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


	*Three months ended*
*In millions*	September 30 2008		June 30 2008		March 31 2008		December 31 2007		September 30 2007
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	28,075	$	27,543	$	25,405	$	24,697	$	24,151
Demand		9,958		9,997		9,580		9,587		9,275
Savings		2,751		2,813		2,625		2,662		2,841
Retail certificates of deposit		16,456		16,791		16,556		16,921		16,563
Other time		4,393		4,686		3,813		1,948		2,748
Time deposits in foreign offices		5,141		4,112		6,026		6,488		4,616

Total interest-bearing deposits		66,774		65,942		64,005		62,303		60,194

Borrowed funds
Federal funds purchased		4,446		4,702		5,564		5,232		6,249
Repurchase agreements		3,424		2,185		2,614		2,875		2,546
Federal Home Loan Bank borrowings		9,660		9,602		8,233		6,339		2,097
Bank notes and senior debt		5,772		6,621		6,754		7,676		7,537
Subordinated debt		5,088		5,132		4,649		4,118		4,039
Other		3,758		2,854		4,247		2,353		2,741

Total borrowed funds		32,148		31,096		32,061		28,593		25,209

Total interest-bearing liabilities		98,922		97,038		96,066		90,896		85,403
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity:
Demand and other noninterest-bearing deposits		18,193		18,045		17,564		18,472		18,211
Allowance for unfunded loan commitments and letters of credit		124		152		135		127		125
Accrued expenses and other liabilities		9,396		9,410		10,690		9,035		8,117
Minority and noncontrolling interests in consolidated entities		2,020		2,008		1,817		1,658		1,414
Shareholders’ equity		14,344		14,739		14,283		14,762		14,362

Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	142,999	$	141,392	$	140,555	$	134,950	$	127,632

Supplemental Average Balance Sheet Information (Unaudited) (Continued)

Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	66,774	$	65,942	$	64,005	$	62,303	$	60,194
Demand and other noninterest-bearing deposits		18,193		18,045		17,564		18,472		18,211

Total deposits	$	84,967	$	83,987	$	81,569	$	80,775	$	78,405

Transaction deposits	$	56,226	$	55,585	$	52,549	$	52,756	$	51,637

Common shareholders’ equity	$	13,838	$	14,513	$	14,276	$	14,755	$	14,355

Trading Liabilities
Securities sold short (a)	$	1,370	$	1,157	$	2,127	$	1,748	$	1,960
Repurchase agreements and other borrowings (b)		609		691		661		630		637
Financial derivatives (c)		1,806		2,051		2,856		1,772		1,400
Borrowings at fair value (c)		20		25		30		39		41

Total trading liabilities	$	3,805	$	3,924	$	5,674	$	4,189	$	4,038

(a)	Included in “Borrowed funds-Other” above.

(b)	Included in “Borrowed funds-Repurchase agreements” and “Borrowed funds-Other” above.

(c)	Included in “Accrued expenses and other liabilities” above.

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Margin (Unaudited)


	*Three months ended*
	September 30 2008		June 30 2008		March 31 2008		December 31 2007		September 30 2007
Net Interest Margin (a)
Average yields/rates
Yield on interest-earning assets
Loans	5.53	%	5.76	%	6.18	%	6.62	%	6.89	%
Securities available for sale	5.32		5.35		5.41		5.46		5.42
Other	4.85		5.04		4.88		5.51		5.56
Total yield on interest-earning assets	5.42		5.59		5.83		6.19		6.37
Rate on interest-bearing liabilities
Deposits	2.02		2.20		2.82		3.31		3.49
Borrowed funds	2.85		3.04		3.89		4.88		5.22
Total rate on interest-bearing liabilities	2.29		2.47		3.17		3.81		3.99

Interest rate spread	3.13		3.12		2.66		2.38		2.38
Impact of noninterest-bearing sources	.33		.35		.43		.58		.62

Net interest margin	3.46	%	3.47	%	3.09	%	2.96	%	3.00	%

(a)

Calculated as annualized taxable-equivalent net interest income divided by average earning assets. 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 taxable investments. To provide more meaningful comparisons of yields and margins for all earning assets in calculating net interest margins, in this table we use net interest income 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. This adjustment is not permitted under GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended September 30, 2008, June 30, 2008, March 31, 2008, December 31, 2007, and September 30, 2007 were $9 million, $10 million, $9 million, $7 million, and $6 million, respectively.

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

Selected Consolidated Income Statement Information and Trading Revenue (Unaudited)

SELECTED CONSOLIDATED INCOME STATEMENT INFORMATION


	*Nine months ended*					*Three months ended*
*In millions*	September 30 2008			September 30 2007		September 30 2008			June 30 2008			September 30 2007
OTHER NONINTEREST INCOME
BlackRock LTIP shares adjustment	$	69		$	1	$	(51	)	$	80		$	(50	)
Commercial mortgage loans held for sale intended for securitization valuations, net of hedges		(238	)				(82	)		21
Gain on sale of Hilliard Lyons (a)		114
Visa redemption gain		95
Reversal of legal contingency reserve established in connection with an acquisition due to a settlement		61					61
Trading income (losses) (b)		(77	)		114		(54	)		53			33
Equity management gains (losses)		(8	)		81		(24	)		(7	)		47

PROVISION FOR CREDIT LOSSES
Integration costs		23								23

NONINTEREST EXPENSE
Integration costs		41			67		14			13			41
Visa indemnification liability		(43	)

(a)	The impact of the gain was $23 million after taxes.

(b)	For the nine months ended and three months ended September 30, 2008, Corporate & Institutional Banking generated trading income which was more than offset by trading losses in “Other, including BlackRock.”

TRADING REVENUE


	*Nine months ended*					*Three months ended*
*In millions*	September 30 2008			September 30 2007		September 30 2008			June 30 2008		September 30 2007
Net interest income (expense)	$	58				$	19		$	23	$	(1	)
Noninterest income		(77	)	$	114		(54	)		53		33

Total trading revenue	$	(19	)	$	114	$	(35	)	$	76	$	32


Securities underwriting and trading (c)	$	(3	)	$	31	$	(13	)	$	19	$	14
Foreign exchange		52			42		19			17		15
Financial derivatives		(68	)		41		(41	)		40		3

Total trading revenue	$	(19	)	$	114	$	(35	)	$	76	$	32

(c)	Includes changes in fair value for certain loans accounted for at fair value.

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans (Unaudited)


*In millions*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
Commercial
Retail/wholesale	$	6,138		$	6,374		$	6,298		$	5,973		$	5,506
Manufacturing		5,656			5,322			5,170			4,705			4,609
Other service providers		3,914			3,670			3,563			3,529			3,816
Real estate related (a)		6,155			6,101			5,701			5,425			4,232
Financial services		1,595			1,452			1,390			1,268			1,901
Health care		1,630			1,637			1,605			1,446			1,256
Other		7,323			6,419			5,912			6,261			5,415

Total commercial		32,411			30,975			29,639			28,607			26,735

Commercial real estate
Real estate projects		6,622			6,539			6,448			6,114			5,807
Mortgage		3,047			2,912			2,603			2,792			2,507

Total commercial real estate		9,669			9,451			9,051			8,906			8,314

Lease financing		3,553			3,522			3,464			3,500			3,539

Total commercial lending		45,633			43,948			42,154			41,013			38,588

Consumer
Home equity		14,892			14,735			14,315			14,447			14,366
Education		2,648			2,117			2,024			132			110
Automobile		1,606			1,590			1,533			1,513			1,521
Other		2,260			2,245			2,156			2,234			2,160

Total consumer		21,406			20,687			20,028			18,326			18,157

Residential mortgage		8,757			9,047			9,299			9,557			9,605
Other		298			292			272			413			396
Unearned income		(910	)		(934	)		(951	)		(990	)		(986	)

Total, net of unearned income	$	75,184		$	73,040		$	70,802		$	68,319		$	65,760

(a)	Includes loans to customers in the real estate and construction industries.

Page 7

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*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
Beginning balance	$	988		$	865		$	830		$	717		$	703
Charge-offs
Commercial		(51	)		(71	)		(70	)		(60	)		(38	)
Commercial real estate		(60	)		(24	)		(11	)		(12	)		(3	)
Consumer		(39	)		(33	)		(28	)		(24	)		(17	)
Residential mortgage		(2	)
Lease financing		1			(2	)		(1	)

Total charge-offs		(151	)		(130	)		(110	)		(96	)		(58	)

Recoveries
Commercial		21			11			8			10			5
Commercial real estate		4			3
Consumer		4			3			4			3			4
Lease financing					1

Total recoveries		29			18			12			13			9

Net charge-offs
Commercial		(30	)		(60	)		(62	)		(50	)		(33	)
Commercial real estate		(56	)		(21	)		(11	)		(12	)		(3	)
Consumer		(35	)		(30	)		(24	)		(21	)		(13	)
Residential mortgage		(2	)
Lease financing		1			(1	)		(1	)

Total net charge-offs		(122	)		(112	)		(98	)		(83	)		(49	)

Provision for credit losses (a)		190			186			151			188			65
Acquired allowance (b)					20						15
Net change in allowance for unfunded loan commitments and letters of credit		(3	)		29			(18	)		(7	)		(2	)

Ending balance	$	1,053		$	988		$	865		$	830		$	717

Supplemental Information
Net charge-offs to average loans (For the three months ended)		.66	%		.62	%		.57	%		.49	%		.30	%
Allowance for loan and lease losses to total loans		1.40			1.35			1.22			1.21			1.09
Allowance for loan and lease losses to nonperforming loans		125			142			151			183			274

Commercial lending net charge-offs (c)	$	(85	)	$	(82	)	$	(74	)	$	(62	)	$	(36	)
Consumer lending net charge-offs (d)		(37	)		(30	)		(24	)		(21	)		(13	)

Total net charge-offs	$	(122	)	$	(112	)	$	(98	)	$	(83	)	$	(49	)

Net charge-offs to average loans
Commercial lending		.78	%		.77	%		.73	%		.63	%		.38	%
Consumer lending		.49			.41			.34			.30			.19

(a)	Amount for the second quarter of 2008 included integration costs of $23 million related to Sterling and amount for the fourth quarter of 2007 included $45 million related to Yardville.

(b)	Amount for the second quarter of 2008 related to Sterling and for the fourth quarter of 2007 related to Yardville.

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

(d)	Includes consumer and residential mortgage.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


*Three months ended - in millions*	September 30 2008		June 30 2008			March 31 2008		December 31 2007		September 30 2007
Beginning balance	$	124	$	152		$	134	$	127	$	125
Acquired allowance - Sterling				1
Net change in allowance for unfunded loan commitments and letters of credit		3		(29	)		18		7		2

Ending balance	$	127	$	124		$	152	$	134	$	127


Net Unfunded Commitments *In millions*	September 30 2008		June 30 2008			March 31 2008		December 31 2007		September 30 2007
Net unfunded commitments	$	57,094	$	51,558		$	52,426	$	53,347	$	52,590

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*In millions*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
Nonaccrual loans
Commercial
Retail/wholesale	$	72		$	58		$	32		$	39		$	41
Manufacturing		45			34			47			35			41
Other service providers		76			66			68			48			38
Real estate related (a)		92			70			63			45			15
Financial services		15			10			16			15			1
Health care		8			7			4			4			4
Other		5			8			8			7			4

Total commercial		313			253			238			193			144

Commercial real estate
Real estate projects		391			330			251			184			64
Mortgage		49			35			22			28			11

Total commercial real estate		440			365			273			212			75

Consumer		25			24			19			17			15
Residential mortgage		60			49			38			27			25
Lease financing		3			4			3			3			3

Total nonaccrual loans		841			695			571			452			262

Restructured loans								2			2

Total nonperforming loans		841			695			573			454			262

Foreclosed and other assets
Residential mortgage		19			19			13			10			11
Consumer		10			11			10			8			5
Commercial lending		5			8			19			23			23

Total foreclosed and other assets		34			38			42			41			39

Total nonperforming assets (b) (c)	$	875		$	733		$	615		$	495		$	301

Nonperforming loans to total loans		1.12	%		.95	%		.81	%		.66	%		.40	%
Nonperforming assets to total loans and foreclosed assets		1.16			1.00			.87			.72			.46
Nonperforming assets to total assets		.60			.51			.44			.36			.23

(a) Includes loans related to customers in the real estate and construction industries.
(b) Excludes equity management assets carried at estimated fair value (the September 30, 2007 amount includes troubled debt restructured assets of $4 million):	$	34		$	44		$	5		$	4		$	12
(c) Excludes loans held for sale carried at lower of cost or market value (amounts include troubled debt restructured assets of $7 million, $20 million, and $21 million at September 30, 2008, June 30, 2008, and March 31, 2008, respectively):	$	39		$	59		$	35		$	25		$	7

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Change in Nonperforming Assets


*In millions*	Nine months ended
January 1, 2008	$	495
Transferred in		989
Acquisition		9
Charge-offs/valuation adjustments		(307	)
Principal activity including payoffs		(220	)
Returned to performing		(77	)
Asset sales		(14	)

September 30, 2008	$	875

Largest Individual Nonperforming Assets at September 30, 2008 - in millions (a)


Ranking	Outstandings			Industry
1	$	23		Manufacturing
2		17		Construction
3		15		Construction
4		14		Wholesale Trade
5		13		Retail Trade
6		13		Construction
7		13		Construction
8		12		Construction
9		11		Construction
10		11		Wholesale Trade

Total	$	142

As a percent of total nonperforming assets		16	%

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

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Business Segment Products and Services (Unaudited)

Retail Banking provides deposit, lending, brokerage, trust, investment management, and cash management services to approximately 2.9 million consumer and small business customers within our primary geographic markets. Our customers are serviced through 1,142 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, Washington, D.C., Maryland, Virginia, Ohio, Kentucky and Delaware. Brokerage services are provided through PNC Investments, LLC.

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. These services are provided to individuals and corporations primarily within our primary geographic markets.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related 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-related 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.

Global Investment Servicing, formerly 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, subaccounting, and distribution. Financial advisor services include managed accounts and information management. This business segment serviced $2.3 trillion in total assets and 73 million shareholder accounts as of September 30, 2008 both domestically and internationally from locations in Ireland, Poland and Luxembourg.

BlackRock is one of the largest publicly traded investment management firms in the United States with $1.428 trillion of assets under management at June 30, 2008. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of fixed income, cash management, equity and balanced and alternative investment separate accounts and funds. In addition, BlackRock provides risk management, investment system outsourcing and financial advisory services globally to institutional investors. At September 30, 2008, PNC’s ownership interest in BlackRock was approximately 33%.

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Segment Earnings and Revenue (Unaudited) (a) (b)


	*Three months ended*
*In millions*	September 30 2008		June 30 2008		March 31 2008		December 31 2007			September 30 2007
Earnings
Retail Banking (c)	$	79	$	140	$	195	$	211		$	246
Corporate & Institutional Banking		72		134		2		91			87
Global Investment Servicing (formerly, PFPC)		34		33		30		32			33
Other, including BlackRock (c) (d)		63		198		150		(156	)		41

Total consolidated net income	$	248	$	505	$	377	$	178		$	407

Revenue (a)
Retail Banking (c)	$	882	$	889	$	959	$	943		$	930
Corporate & Institutional Banking		362		482		242		399			388
Global Investment Servicing (e)		237		237		228		214			209
Other, including BlackRock (c) (d)		173		431		392		71			224

Total consolidated revenue	$	1,654	$	2,039	$	1,821	$	1,627		$	1,751

(a)	Our business 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)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our Quarterly Report on Form 10-Q for the quarter ended September 30, 2008 will provide additional business segment disclosures for BlackRock.

(c)	Information for the periods presented reflects the reclassification of results for Hilliard Lyons, which we sold March 31, 2008, including the gain on its sale, from Retail Banking to “Other, including BlackRock.”

(d)

Includes earnings and gains or losses related to PNC’s equity interest in BlackRock and those related to Hilliard Lyons prior to its sale, integration costs, asset and liability management activities including net securities gains or losses and certain trading activities, equity management activities, differences between business segment performance reporting and financial statement reporting under generally accepted accounting principles (GAAP), corporate overhead and intercompany eliminations.

(e)	Global Investment Servicing revenue represents the sum of servicing revenue and nonoperating income (expense) less debt financing costs.


	September 30 2008	June 30 2008	March 31 2008	December 31 2007	September 30 2007
Period-end Employees
Full-time employees:
Retail Banking	11,347	11,671	11,014	11,022	10,747
Corporate & Institutional Banking	2,305	2,310	2,218	2,290	2,267
Global Investment Servicing	4,969	4,946	4,865	4,784	4,504
Other
Operations & Technology	4,452	4,572	4,394	4,379	4,243
Staff Services and other	2,150	2,168	2,001	3,005	3,050

Total Other	6,602	6,740	6,395	7,384	7,293

Total full-time employees	25,223	25,667	24,492	25,480	24,811
Total part-time employees	2,906	2,938	2,843	2,840	2,823

Total employees	28,129	28,605	27,335	28,320	27,634

The period-end employee statistics disclosed for each business reflect staff directly employed by the respective business and exclude operations, technology and staff services employees. Sterling and Yardville employees are included in the Retail Banking, Corporate & Institutional Banking and Other businesses at September 30, 2008 and June 30, 2008. Yardville employees are also included in these categories at March 31, 2008 and December 31, 2007. Statistics at September 30, 2008, June 30, 2008 and March 31, 2008 exclude Hilliard Lyons employees; statistics at December 31, 2007 and September 30, 2007 reflect the reclassification of these employees from Retail Banking to Staff Services and other in the table above.

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (a)


	*Three months ended*
*Dollars in millions*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
INCOME STATEMENT
Net interest income	$	493		$	499		$	498		$	542		$	535
Noninterest income		389			390			461			401			395

Total revenue		882			889			959			943			930
Provision for credit losses		156			90			104			70			8
Noninterest expense		593			569			538			537			530

Pretax earnings		133			230			317			336			392
Income taxes		54			90			122			125			146

Earnings	$	79		$	140		$	195		$	211		$	246

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	14,780		$	14,635		$	14,366		$	14,417		$	14,296
Indirect		2,034			2,071			2,026			2,031			2,033
Education		2,348			2,087			844			108			110
Other consumer		1,799			1,736			1,636			1,580			1,500

Total consumer		20,961			20,529			18,872			18,136			17,939
Commercial and commercial real estate (b)		14,750			15,175			14,393			14,020			13,799
Floor plan		923			1,045			1,020			983			939
Residential mortgage		2,339			2,443			2,440			2,500			2,050
Other		66			67			65			69			69

Total loans		39,039			39,259			36,790			35,708			34,796
Goodwill and other intangible assets		6,287			6,158			5,806			5,651			5,562
Loans held for sale		68			57			1,131			1,572			1,567
Other assets		1,550			1,465			1,661			2,316			2,676

Total assets	$	46,944		$	46,939		$	45,388		$	45,247		$	44,601

Deposits
Noninterest-bearing demand (c)	$	11,155		$	10,824		$	10,458		$	10,967		$	11,191
Interest-bearing demand		9,582			9,641			9,237			9,173			8,869
Money market		20,055			19,346			17,732			17,328			17,020

Total transaction deposits		40,792			39,811			37,427			37,468			37,080
Savings		2,739			2,800			2,609			2,651			2,831
Certificates of deposit		16,302			16,445			16,321			16,768			16,502

Total deposits		59,833			59,056			56,357			56,887			56,413
Other liabilities		377			318			348			382			342
Capital		3,789			3,833			3,560			3,548			3,517

Total funds	$	63,999		$	63,207		$	60,265		$	60,817		$	60,272

PERFORMANCE RATIOS
Return on average capital		8	%		15	%		22	%		24	%		28	%
Noninterest income to total revenue		44			44			48			43			42
Efficiency		67			64			56			57			57

(a)	See notes (a) and (c) on page 12. Information for the periods presented excludes the impact of Hilliard Lyons, which was sold on March 31, 2008, including the gain on its sale.

(b)	Average balance for the third quarter of 2008 reflects a transfer of approximately $400 million of loans, or $225 million on average, to the Corporate & Institutional Banking business segment.

(c)	Average balance for the first quarter of 2008 reflects a transfer of $140 million to the Corporate & Institutional Banking business segment.

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


*Dollars in millions except as noted*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
OTHER INFORMATION (a) (b)
Credit-related statistics:
Commercial nonperforming assets	$	373		$	304		$	217		$	187		$	104
Consumer nonperforming assets		58			49			42			38			33

Total nonperforming assets	$	431		$	353		$	259		$	225		$	137

Commercial net charge-offs	$	46		$	45		$	61		$	24		$	20
Consumer net charge-offs		35			31			23			21			14

Total net charge-offs (c)	$	81		$	76		$	84		$	45		$	34

Commercial annualized net charge-off ratio		1.16	%		1.11	%		1.59	%		.63	%		.54	%
Consumer annualized net charge-off ratio		.60	%		.54	%		.43	%		.40	%		.28	%
Total annualized net charge-off ratio (c)		.83	%		.78	%		.92	%		.50	%		.39	%

Other statistics:
Full-time employees		11,347			11,671			11,014			11,022			10,747
Part-time employees		2,358			2,371			2,322			2,298			2,236
ATMs		4,018			4,015			3,903			3,900			3,870
Branches (d)		1,142			1,153			1,096			1,109			1,072

ASSETS UNDER ADMINISTRATION (in billions) (e)
Assets under management
Personal	$	44		$	46		$	46		$	48		$	52
Institutional		19			20			19			20			20

Total	$	63		$	66		$	65		$	68		$	72

Asset Type
Equity	$	34		$	36		$	36		$	40		$	42
Fixed income		17			17			17			17			19
Liquidity/Other		12			13			12			11			11

Total	$	63		$	66		$	65		$	68		$	72

Nondiscretionary assets under administration
Personal	$	28		$	30		$	30		$	30		$	31
Institutional		78			81			81			83			81

Total	$	106		$	111		$	111		$	113		$	112

Asset Type
Equity	$	44		$	47		$	46		$	49		$	50
Fixed income		25			27			27			28			27
Liquidity/Other		37			37			38			36			35

Total	$	106		$	111		$	111		$	113		$	112

(a)	Presented as of period-end, except for net charge-offs and annualized net charge-off ratios, which are for the three months ended. Information for the periods presented excludes the impact of Hilliard Lyons, which was sold on March 31, 2008.

(b)	Amounts subsequent to October 26, 2007 include the impact of Yardville. Amounts subsequent to April 4, 2008 include the impact of Sterling.

(c)	Increase in the first quarter of 2008 related to the impact of aligning small business and consumer loan charge-off policies.

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

(e)	Excludes brokerage account assets.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


*Dollars in millions except as noted*	September 30 2008			June 30 2008 (b)			March 31 2008			December 31 2007 (b)			September 30 2007
OTHER INFORMATION (a) (b)
Home equity portfolio credit statistics:
% of first lien positions (c)		39	%		39	%		39	%		39	%		39	%
Weighted average loan-to-value ratios (c)		73	%		72	%		72	%		73	%		72	%
Weighted average FICO scores (d)		727			726			725			727			726
Annualized net charge-off ratio		.58	%		.53	%		.35	%		.26	%		.16	%
Loans 90 days past due		.46	%		.46	%		.42	%		.37	%		.30	%

Checking-related statistics:
Retail Banking checking relationships		2,431,000			2,328,000			2,305,000			2,272,000			2,275,000
Consumer DDA households using online banking		1,213,000			1,157,000			1,128,000			1,091,000			1,050,000
% of consumer DDA households using online banking		56	%		56	%		55	%		54	%		52	%
Consumer DDA households using online bill payment		841,000			768,000			723,000			667,000			604,000
% of consumer DDA households using online bill payment		39	%		37	%		35	%		33	%		30	%

Small business loans and managed deposits:
Small business loans (e)	$	13,656		$	13,582		$	13,778		$	13,049		$	13,157
Managed deposits:
On-balance sheet
Noninterest-bearing demand (f)	$	6,106		$	6,043		$	5,946		$	5,994		$	6,119
Interest-bearing demand		2,270			1,851			1,911			1,873			2,027
Money market		3,912			3,349			3,398			3,152			3,389
Certificates of deposit		1,077			879			1,030			1,068			1,070
Off-balance sheet (g)
Small business sweep checking		3,124			2,958			2,976			2,780			2,823

Total managed deposits	$	16,489		$	15,080		$	15,261		$	14,867		$	15,428

Brokerage statistics:
Financial consultants (h)		402			394			387			364			359
Full service brokerage offices		23			24			24			24			24
Brokerage account assets (billions)	$	16		$	18		$	18		$	19		$	19

(a)	Presented as of period-end, except for the annualized net charge-off ratio, which is for the three months ended. Information for the periods presented excludes the impact of Hilliard Lyons, which was sold on March 31, 2008.

(b)

This information excludes the impact of acquisitions between PNC’s acquisition date and the date of conversion of the acquired companies’ data onto PNC’s financial and operational systems because such information was not available prior to the conversion date. Therefore, information presented above as of December 31, 2007 (except “Brokerage statistics”) excludes the impact of Yardville, which PNC acquired effective October 26, 2007 and converted during March 2008. Also, information presented above as of June 30, 2008 (except “Brokerage statistics”) excludes the impact of Sterling, which PNC acquired effective April 4, 2008 and converted during August 2008.

(c)	Includes loans from acquired portfolios for which lien position and loan-to-value information was limited.

(d)	Represents the most recent FICO scores we have on file.

(e)	See note (b) on page 13.

(f)	Balances for the first quarter of 2008 reflect a transfer of $140 million to the Corporate & Institutional Banking business segment.

(g)	Represents small business balances. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.

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

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited) (a)


	*Three months ended*
*Dollars in millions except as noted*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
INCOME STATEMENT
Net interest income	$	254		$	250		$	241		$	237		$	204
Noninterest income
Corporate service fees		159			145			123			137			161
Other		(51	)		87			(122	)		25			23

Noninterest income		108			232			1			162			184

Total revenue		362			482			242			399			388
Provision for credit losses		31			72			49			69			55
Noninterest expense		236			210			215			222			211

Pretax earnings (loss)		95			200			(22	)		108			122
Income taxes (benefit)		23			66			(24	)		17			35

Earnings	$	72		$	134		$	2		$	91		$	87

AVERAGE BALANCE SHEET
Loans
Corporate (b)	$	12,635		$	11,879		$	11,333		$	10,747		$	10,108
Commercial real estate (c)		5,828			5,501			5,146			4,938			4,538
Commercial - real estate related		3,015			2,939			2,902			2,637			2,347
Asset-based lending		5,321			5,241			4,974			4,748			4,601

Total loans (b)		26,799			25,560			24,355			23,070			21,594
Goodwill and other intangible assets		2,260			2,239			2,191			2,232			2,085
Loans held for sale		1,897			2,204			2,418			1,781			1,207
Other assets		5,930			5,889			6,281			4,641			4,544

Total assets	$	36,886		$	35,892		$	35,245		$	31,724		$	29,430

Deposits
Noninterest-bearing demand	$	7,502		$	7,393		$	7,481		$	7,851		$	7,238
Money market		5,268			5,301			5,026			4,995			4,960
Other		2,323			2,195			2,029			1,818			1,436

Total deposits		15,093			14,889			14,536			14,664			13,634
Other liabilities		5,128			4,905			5,679			4,452			3,109
Capital		2,705			2,436			2,462			2,357			2,132

Total funds	$	22,926		$	22,230		$	22,677		$	21,473		$	18,875

PERFORMANCE RATIOS
Return on average capital		11	%		22	%					15	%		16	%
Noninterest income to total revenue		30			48						41			47
Efficiency		65			44			89	%		56			54

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	248		$	244		$	243		$	244		$	222
Acquisitions/additions		7			11			5			8			36
Repayments/transfers		(8	)		(7	)		(4	)		(9	)		(14	)

End of period	$	247		$	248		$	244		$	243		$	244

OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	137		$	133		$	133		$	131		$	121
Capital Markets	$	80		$	104		$	76		$	74		$	73
Commercial mortgage securitizations and valuations (e)	$	(56	)	$	49		$	(146	)	$	(12	)	$	1
Commercial mortgage loan servicing (f)		55			56			50			58			65

Commercial mortgage banking activities	$	(1	)	$	105		$	(96	)	$	46		$	66
Total loans (g)	$	28,232		$	26,075		$	24,981		$	23,861		$	22,455
Nonperforming assets (g)	$	391		$	329		$	317		$	243		$	141
Net charge-offs	$	39		$	35		$	15		$	39		$	15
Full-time employees (g)		2,305			2,310			2,218			2,290			2,267
Net carrying amount of commercial mortgage servicing rights (g)	$	698		$	681		$	678		$	694		$	708

(a)	See note (a) on page 12.

(b)	Includes lease financing.

(c)	Average balance for the third quarter of 2008 reflects a transfer of approximately $400 million of loans, or $225 million on average, from the Retail Banking business segment.

(d)	Represents consolidated PNC amounts.

(e)	Includes valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, origination fees, gains on sale of loans held for sale and net interest income on loans held for sale.

(f)	Includes net interest income and noninterest income from loan servicing and ancillary services.

(g)	Presented as of period end.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Global Investment Servicing (Unaudited) (a)


	*Three months ended*
*Dollars in millions except as noted*	September 30 2008			June 30 2008			March 31 2008			December 31 2007			September 30 2007
INCOME STATEMENT
Servicing revenue (b)	$	243		$	244		$	238		$	223		$	216
Operating expense (b)		187			186			181			167			159

Operating income		56			58			57			56			57
Debt financing		7			8			11			10			9
Nonoperating income (c)		1			1			1			1			2

Pretax earnings		50			51			47			47			50
Income taxes		16			18			17			15			17

Earnings	$	34		$	33		$	30		$	32		$	33

PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,306		$	1,305		$	1,311		$	1,315		$	1,002
Other assets		3,195			1,301			1,388			1,161			1,169

Total assets	$	4,501		$	2,606		$	2,699		$	2,476		$	2,171

Debt financing	$	885		$	935		$	986		$	989		$	702
Other liabilities		2,927			1,005			1,070			865			878
Shareholder’s equity		689			666			643			622			591

Total funds	$	4,501		$	2,606		$	2,699		$	2,476		$	2,171

PERFORMANCE RATIOS
Return on average equity		20	%		20	%		19	%		21	%		23	%
Operating margin (d)		23			24			24			25			26

SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)(e)
Domestic	$	806		$	862		$	875		$	869		$	806
Offshore		101			126			125			121			116

Total	$	907		$	988		$	1,000		$	990		$	922

Asset type (in billions)(e)
Money market	$	387		$	400		$	413		$	373		$	328
Equity		308			358			358			390			377
Fixed income		116			126			128			123			117
Other		96			104			101			104			100

Total	$	907		$	988		$	1,000		$	990		$	922

Custody fund assets (in billions)	$	415		$	471		$	476		$	500		$	497

Shareholder accounts (in millions)
Transfer agency		17			19			19			19			19
Subaccounting		56			55			57			53			51

Total		73			74			76			72			70

OTHER INFORMATION
Period-end full-time employees		4,969			4,946			4,865			4,784			4,504

(a)	See note (a) on page 12.

(b)

Certain out-of-pocket expense items which are then client billable are included in both servicing revenue and operating expense above, but offset each other entirely and therefore have no net effect on operating income. Distribution revenue and expenses which relate to 12b-1 fees that are received from certain fund clients for the payment of marketing, sales and service expenses also entirely offset each other, but are netted for presentation purposes above.

(c)	Net of nonoperating expense.

(d)	Total operating income divided by servicing revenue.

(e)	Includes alternative investment net assets serviced.

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THE PNC FINANCIAL SERVICES GROUP, INC.

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 (net of eligible deferred taxes).

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 by reducing the carrying amount by the allowance for loan losses associated with such loan or, if the market value is less than its carrying amount, by the amount of that difference.

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.

Credit spread—The difference in yield between debt issues of similar maturity. The excess of yield attributable to credit spread is often used as a measure of relative creditworthiness, with a reduction in the credit spread reflecting an improvement in the borrower’s perceived creditworthiness.

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., positioned for declining interest 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; trading securities and other short-term investments; loans held for sale; loans, net of unearned income; securities; and certain other assets.

Economic capital—Represents the amount of resources that a business segment should hold to guard against potentially large losses that could cause insolvency. It is based on a measurement of economic risk, as opposed to risk as defined by regulatory bodies. The economic capital measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with 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.

Effective duration—A measurement, expressed in years, that, when multiplied by a change in interest rates, would approximate the percentage change in value of on- and off- balance sheet positions.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms (Continued)

Efficiency—Noninterest expense divided by the sum of net interest income (GAAP basis) and noninterest income.

Fair value—The price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date using the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants.

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 a business segment. 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 income from loans and deposits—A management accounting assessment, using funds transfer pricing methodology, of the net interest contribution from loans and deposits.

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 (GAAP basis) and noninterest income.

Nonperforming assets—Nonperforming assets include nonaccrual loans, troubled debt restructured loans, 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, lease financing, consumer, and residential mortgage customers as well as troubled debt restructured loans. Nonperforming loans do not include loans held for sale or foreclosed and other assets. We do not accrue interest income on loans classified as nonperforming.

Notional amount—A number of currency units, shares, or other units specified in a derivatives contract.

Operating leverage—The period to period percentage change in total revenue (GAAP basis) 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 assets—Annualized net income divided by average assets.

Return on average capital—Annualized net income divided by average capital.

Return on average common shareholders’ equity—Annualized net income less preferred stock dividends divided by average common shareholders’ equity.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms (Continued)

Return on average tangible common shareholders’ equity—Annualized net income less preferred stock dividends divided by average common shareholders’ equity less goodwill and other intangible assets (net of deferred taxes for both taxable and nontaxable combinations), and excluding mortgage servicing rights.

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 (net of eligible deferred taxes), and excluding mortgage servicing rights, divided by period-end assets less goodwill and other intangible assets (net of deferred taxes), and excluding mortgage servicing rights.

Taxable-equivalent interest—The interest income earned on certain assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins 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 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 (net of eligible deferred taxes relating to nontaxable combinations), 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 subordinated debt and trust preferred securities, 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.

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