Financial Supplement (unaudited) for Second Quarter 2011

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2011

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2011

(UNAUDITED)


	Page
Consolidated Results:
Income Statement		1
Balance Sheet		2
Capital Ratios		2
Average Balance Sheet		3-4
Net Interest Margin and Selected Income Statement Information		5
Loans, Loans Held for Sale and Net Unfunded Commitments		6
Allowances for Credit Losses		7
Purchase Accounting Accretion		8
Nonperforming Assets and Troubled Debt Restructurings		9-10
Accruing Loans Past Due		11
Business Segment Results:
Descriptions		12
Income and Revenue		13
Period-end Employees		13
Retail Banking		14-15
Corporate & Institutional Banking		16
Asset Management Group		17
Residential Mortgage Banking		18
Distressed Assets Portfolio		19
Glossary of Terms		20-23

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 20, 2011. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. 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.

BUSINESS

PNC is one of the largest diversified financial services companies in the United States and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, corporate and institutional banking, asset management, and residential mortgage banking, providing many of its products and services nationally and others in PNC’s primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Virginia, Missouri, Delaware, Washington, D.C., and Wisconsin. PNC also provides certain products and services internationally.

PENDING ACQUISITION OF RBC BANK (USA)

PNC announced on June 20, 2011 that it had signed a definitive agreement to acquire RBC Bank (USA), the U.S. retail banking subsidiary of Royal Bank of Canada. RBC Bank (USA) has approximately $25 billion of assets and 424 branches in North Carolina, Florida, Alabama, Georgia, Virginia and South Carolina. The transaction is expected to add approximately $19 billion of deposits and $16 billion of loans to PNC’s Consolidated Balance Sheet and to close in March 2012, subject to customary closing conditions, including regulatory approvals.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Consolidated Income Statement (Unaudited)


	Three months ended															Six months ended
	June 30			March 31			December 31			September 30			June 30			June 30			June 30
In millions, except per share data	2011			2011			2010			2010			2010			2011			2010
Interest Income
Loans	$	1,905		$	1,884		$	1,962		$	1,996		$	2,158		$	3,789		$	4,318
Investment securities		549			578			602			592			572			1,127			1,195
Other		93			121			107			113			143			214			265

Total interest income		2,547			2,583			2,671			2,701			2,873			5,130			5,778

Interest Expense
Deposits		180			182			205			233			244			362			525
Borrowed funds		217			225			265			253			194			442			439

Total interest expense		397			407			470			486			438			804			964

Net interest income		2,150			2,176			2,201			2,215			2,435			4,326			4,814

Noninterest Income
Asset management		288			263			303			249			243			551			502
Consumer services		333			311			322			328			315			644			611
Corporate services (a)		228			217			370			183			261			445			529
Residential mortgage		163			195			157			216			179			358			326
Service charges on deposits		131			123			132			164			209			254			409
Net gains on sales of securities		82			37			68			121			147			119			237
Net other-than-temporary impairments		(39	)		(34	)		(44	)		(71	)		(94	)		(73	)		(210	)
Gain on BlackRock transaction (b)								160
Other		266			343			234			193			217			609			457

Total noninterest income		1,452			1,455			1,702			1,383			1,477			2,907			2,861

Total revenue		3,602			3,631			3,903			3,598			3,912			7,233			7,675
Provision For Credit Losses		280			421			442			486			823			701			1,574
Noninterest Expense
Personnel		976			989			1,032			959			959			1,965			1,915
Occupancy		176			193			194			177			172			369			359
Equipment		158			167			176			152			168			325			340
Marketing		63			40			70			81			65			103			115
Other		803			681			868			789			638			1,484			1,386

Total noninterest expense		2,176			2,070			2,340			2,158			2,002			4,246			4,115

Income from continuing operations before income taxes and noncontrolling interests		1,146			1,140			1,121			954			1,087			2,286			1,986
Income taxes		234			308			301			179			306			542			557

Income from continuing operations before noncontrolling interests		912			832			820			775			781			1,744			1,429
Income from discontinued operations (net of income taxes of zero, zero, zero, $311, $13, zero, and $27) (c)											328			22						45

Net income		912			832			820			1,103			803			1,744			1,474

Less: Net income (loss) attributable to noncontrolling interests		(1	)		(5	)		(3	)		2			(9	)		(6	)		(14	)
Preferred stock dividends		24			4			24			4			25			28			118
Preferred stock discount accretion and redemptions		1						1			3			1			1			251

Net income attributable to common shareholders	$	888		$	833		$	798		$	1,094		$	786		$	1,721		$	1,119

Basic Earnings Per Common Share
Continuing operations	$	1.69		$	1.59		$	1.52		$	1.45		$	1.45		$	3.27		$	2.09
Discontinued operations											.63			.04						.09

Net income	$	1.69		$	1.59		$	1.52		$	2.08		$	1.49		$	3.27		$	2.18
Diluted Earnings Per Common Share
Continuing operations	$	1.67		$	1.57		$	1.50		$	1.45		$	1.43		$	3.24		$	2.06
Discontinued operations											.62			.04						.09

Net income	$	1.67		$	1.57		$	1.50		$	2.07		$	1.47		$	3.24		$	2.15
Average Common Shares Outstanding
Basic		524			524			524			523			524			524			511
Diluted		527			526			526			526			527			527			514

Efficiency		60	%		57	%		60	%		60	%		51	%		59	%		54	%

Noninterest income to total revenue		40	%		40	%		44	%		38	%		38	%		40	%		37	%

Effective tax rate (d)		20.4	%		27.0	%		26.9	%		18.8	%		28.2	%		23.7	%		28.0	%

(a)	Includes impairment charges/recoveries related to commercial mortgage servicing rights. Refer to the business segment results for Corporate & Institutional Banking on page 16 for additional information.

(b)

Amount represents the $160 million gain ($102 million after taxes) related to our gain on the sale of a portion of our shares of BlackRock stock as part of BlackRock’s November 2010 secondary common stock offering. Our 2010 Annual Report on Form 10-K (2010 Form 10-K) includes additional information regarding this transaction.

(c)

Includes results of operations for PNC Global Investment Servicing Inc. (GIS) through June 30, 2010 and the related after-tax gain on sale. We sold GIS effective July 1, 2010, resulting in a gain of $639 million, or $328 million after taxes, recognized during the third quarter of 2010. The earnings per diluted share impact of the gain on sale was $.62 for the third quarter of 2010. Our 2010 Form 10-K includes additional information regarding our sale of GIS.

(d)

The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax. The lower effective tax rate for the second quarter of 2011 was primarily attributable to the reversal of deferred tax liabilities. The lower effective tax rate for the third quarter of 2010 was primarily the result of receiving a favorable IRS letter ruling in July 2010 that resolved a prior tax position and resulted in a tax benefit of $89 million.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Consolidated Balance Sheet (Unaudited)


	June 30			March 31			December 31			September 30			June 30
In millions, except par value	2011			2011			2010			2010			2010
Assets
Cash and due from banks (a)	$	3,865		$	3,389		$	3,297		$	3,724		$	3,558
Federal funds sold and resale agreements (b)		2,357			2,240			3,704			2,094			2,209
Trading securities		2,075			2,254			1,826			955			882
Interest-earning deposits with banks (a)		4,508			1,359			1,610			415			5,028
Loans held for sale (b)		2,679			2,980			3,492			3,275			2,756
Investment securities (a)		59,414			60,992			64,262			63,461			53,717
Loans (a) (b)		150,319			149,387			150,595			150,127			154,342
Allowance for loan and lease losses (a)		(4,627	)		(4,759	)		(4,887	)		(5,231	)		(5,336	)

Net loans		145,692			144,628			145,708			144,896			149,006
Goodwill		8,182			8,146			8,149			8,166			9,410
Other intangible assets		2,412			2,618			2,604			2,352			2,728
Equity investments (a)		9,776			9,595			9,220			10,137			10,159
Other (a) (b)		22,157			21,177			20,412			20,658			22,242

Total assets	$	263,117		$	259,378		$	264,284		$	260,133		$	261,695


Liabilities
Deposits
Noninterest-bearing	$	52,683		$	48,707		$	50,019		$	46,065		$	44,312
Interest-bearing		129,208			133,283			133,371			133,118			134,487

Total deposits		181,891			181,990			183,390			179,183			178,799
Borrowed funds
Federal funds purchased and repurchase agreements		3,812			4,079			4,144			4,661			3,690
Federal Home Loan Bank borrowings		5,022			5,020			6,043			7,106			8,119
Bank notes and senior debt		10,526			11,324			12,904			13,508			12,617
Subordinated debt		9,358			9,310			9,842			10,023			10,184
Other (a)		6,458			5,263			6,555			4,465			5,817

Total borrowed funds		35,176			34,996			39,488			39,763			40,427
Allowance for unfunded loan commitments and letters of credit		202			204			188			193			218
Accrued expenses (a)		3,502			3,078			3,188			3,134			2,757
Other (a)		7,473			5,393			5,192			5,194			8,504

Total liabilities		228,244			225,661			231,446			227,467			230,705


Equity
Preferred stock (c)
Common stock - $5 par value
Authorized 800 shares, issued 536, 536, 536, 536, and 535 shares		2,682			2,682			2,682			2,680			2,678
Capital surplus - preferred stock		648			647			647			646			646
Capital surplus - common stock and other		12,025			12,056			12,057			12,008			11,979
Retained earnings		17,344			16,640			15,859			15,114			14,073
Accumulated other comprehensive income (loss)		69			(309	)		(431	)		146			(442	)
Common stock held in treasury at cost: 10 shares		(533	)		(584	)		(572	)		(552	)		(557	)

Total shareholders’ equity		32,235			31,132			30,242			30,042			28,377
Noncontrolling interests		2,638			2,585			2,596			2,624			2,613

Total equity		34,873			33,717			32,838			32,666			30,990

Total liabilities and equity	$	263,117		$	259,378		$	264,284		$	260,133		$	261,695

Capital Ratios
Tier 1 common (d)		10.5	%		10.3	%		9.8	%		9.6	%		8.3	%
Tier 1 risk-based (d)		12.8			12.6			12.1			11.9			10.7
Total risk-based (d)		16.2			16.2			15.6			15.6			14.3
Leverage (d)		10.9			10.6			10.2			9.9			9.1
Common shareholders’ equity to assets		12.0			11.8			11.2			11.3			10.6

(a)	Amounts include consolidated variable interest entities. Our first quarter 2011 Form 10-Q included, and second quarter 2011 Form 10-Q will include, additional information regarding these items. Also includes our equity interest in BlackRock under Equity investments.

(b)	Amounts include assets for which PNC has elected the fair value option. Our first quarter 2011 Form 10-Q included, and second quarter 2011 Form 10-Q will include, additional information regarding these items.

(c)	Par value less than $.5 million at each date.

(d)	The ratio as of June 30, 2011 is estimated.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Average Consolidated Balance Sheet (Unaudited) (a)


	Three months ended															Six months ended
In millions	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	25,993		$	29,134		$	28,457		$	22,916		$	20,382		$	27,555		$	21,150
Non-agency		7,618			8,057			8,495			8,917			9,358			7,836			9,783
Commercial mortgage-backed		3,278			3,298			3,325			3,100			2,962			3,288			4,153
Asset-backed		3,185			2,757			2,824			2,436			1,695			2,972			1,843
US Treasury and government agencies		4,505			5,682			6,250			7,758			8,708			5,090			8,104
State and municipal		2,234			2,081			1,732			1,323			1,356			2,158			1,360
Other debt		3,578			3,994			3,618			3,092			2,526			3,785			2,202
Corporate stocks and other		376			443			418			472			446			409			451

Total securities available for sale		50,767			55,446			55,119			50,014			47,433			53,093			49,046
Securities held to maturity
Commercial mortgage-backed		4,215			4,239			4,311			4,130			4,264			4,227			3,193
Asset-backed		2,276			2,463			2,849			3,435			3,697			2,369			3,681
Residential mortgage-backed and other		1,288			9			10			9			21			652			90

Total securities held to maturity		7,779			6,711			7,170			7,574			7,982			7,248			6,964

Total investment securities		58,546			62,157			62,289			57,588			55,415			60,341			56,010
Loans
Commercial		57,932			56,300			54,065			53,502			54,349			57,120			54,903
Commercial real estate		16,779			17,545			18,555			19,847			20,963			17,160			21,689
Equipment lease financing		6,189			6,307			6,375			6,514			6,080			6,248			6,105
Consumer		54,014			54,460			54,741			55,036			54,939			54,236			55,143
Residential real estate		15,001			15,518			16,145			16,766			18,576			15,258			18,985

Total loans		149,915			150,130			149,881			151,665			154,907			150,022			156,825
Loans held for sale		2,719			3,193			3,331			3,021			2,646			2,955			2,561
Federal funds sold and resale agreements		2,321			2,813			2,130			1,602			2,193			2,566			1,933
Other		7,241			5,802			6,164			9,801			9,419			6,525			8,450

Total interest-earning assets		220,742			224,095			223,795			223,677			224,580			222,409			225,779
Noninterest-earning assets:
Allowance for loan and lease losses		(4,728	)		(4,835	)		(5,039	)		(5,290	)		(5,113	)		(4,781	)		(5,124	)
Cash and due from banks		3,433			3,393			3,516			3,436			3,595			3,413			3,664
Other		41,659			39,901			41,286			42,756			41,304			40,785			41,430

Total assets	$	261,106		$	262,554		$	263,558		$	264,579		$	264,366		$	261,826		$	265,749

(a)	Calculated using average daily balances.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Average Consolidated Balance Sheet (Unaudited) (Continued) (a)


	Three months ended										Six months ended
In millions	June 30 2011		March 31 2011		December 31 2010		September 30 2010		June 30 2010		June 30 2011		June 30 2010
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	58,594	$	58,556	$	58,436	$	58,016	$	58,679	$	58,575	$	58,303
Demand		26,912		26,313		25,388		25,078		24,953		26,614		24,814
Savings		8,222		7,656		7,221		7,092		7,075		7,941		6,850
Retail certificates of deposit		35,098		36,509		39,201		41,724		43,745		35,799		45,444
Other time		410		515		598		740		881		462		959
Time deposits in foreign offices		1,840		3,452		2,799		2,650		2,661		2,642		2,847

Total interest-bearing deposits		131,076		133,001		133,643		135,300		137,994		132,033		139,217
Borrowed funds
Federal funds purchased and repurchase agreements		4,138		6,376		4,552		4,179		4,159		5,251		4,251
Federal Home Loan Bank borrowings		5,021		5,088		6,168		7,680		8,575		5,054		9,086
Bank notes and senior debt		11,132		11,745		13,073		12,799		12,666		11,437		12,641
Subordinated debt		8,981		9,353		9,490		9,569		9,764		9,166		9,767
Other		5,713		5,847		4,947		4,886		6,005		5,779		5,969

Total borrowed funds		34,985		38,409		38,230		39,113		41,169		36,687		41,714

Total interest-bearing liabilities		166,061		171,410		171,873		174,413		179,163		168,720		180,931
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		49,720		47,755		47,998		45,306		44,308		48,743		43,474
Allowance for unfunded loan commitments and letters of credit		204		188		193		218		251		196		273
Accrued expenses and other liabilities		10,747		9,771		10,506		12,687		10,446		10,262		10,424
Equity		34,374		33,430		32,988		31,955		30,198		33,905		30,647

Total liabilities and equity	$	261,106	$	262,554	$	263,558	$	264,579	$	264,366	$	261,826	$	265,749

(a)	Calculated using average daily balances.

Supplemental Average Balance Sheet Information (Unaudited)

Deposits and Common Shareholders’ Equity


Interest-bearing deposits	$	131,076	$	133,001	$	133,643	$	135,300	$	137,994	$	132,033	$	139,217
Noninterest-bearing deposits		49,720		47,755		47,998		45,306		44,308		48,743		43,474

Total deposits	$	180,796	$	180,756	$	181,641	$	180,606	$	182,302	$	180,776	$	182,691

Transaction deposits	$	135,226	$	132,624	$	131,822	$	128,400	$	127,940	$	133,932	$	126,591

Common shareholders’ equity	$	31,101	$	30,193	$	29,729	$	28,755	$	27,054	$	30,650	$	25,821


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Details of Net Interest Margin (Unaudited) (a)


	Three months ended															Six months ended
	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
Average yields/rates
Yield on interest-earning assets
Loans		5.11	%		5.09	%		5.21	%		5.24	%		5.58	%		5.10	%		5.54	%
Investment securities		3.80			3.76			3.91			4.15			4.17			3.78			4.31
Other		3.04			4.16			3.61			3.15			3.98			3.59			4.11
Total yield on interest-earning assets		4.64			4.67			4.76			4.82			5.13			4.66			5.15
Rate on interest-bearing liabilities
Deposits		.55			.55			.61			.68			.71			.55			.76
Borrowed funds		2.46			2.35			2.74			2.56			1.88			2.40			2.11
Total rate on interest-bearing liabilities		.95			.95			1.08			1.10			.98			.96			1.07

Interest rate spread		3.69			3.72			3.68			3.72			4.15			3.70			4.08
Impact of noninterest-bearing sources		.24			.22			.25			.24			.20			.23			.21

Net interest margin (b)		3.93	%		3.94	%		3.93	%		3.96	%		4.35	%		3.93	%		4.29	%

(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 generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, and June 30, 2010 were $25 million, $24 million, $22 million, $22 million, and $19 million, respectively. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2011 and June 30, 2010 were $49 million and $37 million, respectively.

(b)	A reconciliation of net interest margin to provision-adjusted net interest margin follows. We believe that provision-adjusted net interest margin, a non-GAAP measure, is useful as a tool to help evaluate the amount of credit related risk associated with interest-earning assets.


	Three months ended															Six months ended
	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
Net interest margin, as reported		3.93	%		3.94	%		3.93	%		3.96	%		4.35	%		3.93	%		4.29	%
Less: provision adjustment		.51			.76			.78			.86			1.47			.64			1.41

Provision-adjusted net interest margin		3.42	%		3.18	%		3.15	%		3.10	%		2.88	%		3.29	%		2.88	%

The adjustment represents annualized provision for credit losses divided by average interest-earning assets.

Selected Consolidated Income Statement Information (Unaudited)


	Three months ended								Six months ended
In millions	June 30 2011	March 31 2011	December 31 2010		September 30 2010		June 30 2010		June 30 2011	June 30 2010
Income from Continuing Operations before Income Taxes
Integration costs			$	78	$	96	$	100		$	213

Income from Discontinued Operations, Net of Income Taxes
Gain on sale of GIS					$	328

Net Income Attributable to Common Shareholders
TARP preferred stock accelerated discount accretion (c)										$	250

(c)	Represents accelerated accretion of the remaining issuance discount on redemption of the TARP preferred stock in February 2010. This resulted in a $.49 reduction to diluted earnings per share for the six months ended June 30, 2010.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Details of Loans (Unaudited)


In millions	June 30 2011		March 31 2011		December 31 2010		September 30 2010		June 30 2010
Commercial
Retail/wholesale trade	$	10,952	$	10,665	$	9,901	$	9,752	$	9,576
Manufacturing		10,426		9,805		9,334		9,519		9,728
Service providers		8,984		8,690		8,866		8,747		8,289
Real estate related (a)		7,515		7,533		7,500		7,398		7,269
Financial services		5,206		5,034		4,573		3,773		4,302
Health care		4,115		3,839		3,481		3,169		3,099
Other industries		11,422		11,036		11,522		10,830		11,969

Total commercial		58,620		56,602		55,177		53,188		54,232

Commercial real estate
Real estate projects		11,086		11,581		12,211		13,021		13,914
Commercial mortgage		5,233		5,552		5,723		6,070		6,450

Total commercial real estate		16,319		17,133		17,934		19,091		20,364

Equipment lease financing		6,210		6,215		6,393		6,408		6,630

TOTAL COMMERCIAL LENDING		81,149		79,950		79,504		78,687		81,226

Consumer
Home equity
Lines of credit		22,838		23,001		23,473		23,770		23,901
Installment		10,541		10,655		10,753		10,815		11,060
Residential real estate
Residential mortgage		14,302		14,602		15,292		15,708		16,618
Residential construction		680		731		707		776		1,219
Credit card		3,754		3,707		3,920		3,883		3,967
Other consumer
Education		8,816		9,041		9,196		8,819		8,867
Automobile		3,705		3,156		2,983		2,863		2,697
Other		4,534		4,544		4,767		4,806		4,787

TOTAL CONSUMER LENDING		69,170		69,437		71,091		71,440		73,116

Total (b)	$	150,319	$	149,387	$	150,595	$	150,127	$	154,342


(a) Includes loans to customers in the real estate and construction industries.
(b) Includes purchased impaired loans:	$	7,256	$	7,522	$	7,780	$	8,130	$	9,127

Details of Loans Held for Sale (Unaudited)


In millions	June 30 2011		March 31 2011		December 31 2010		September 30 2010		June 30 2010
Commercial mortgage	$	1,226	$	1,047	$	1,207	$	1,381	$	1,239
Residential mortgage		1,351		1,840		1,890		1,786		1,336
Other		102		93		395		108		181

Total	$	2,679	$	2,980	$	3,492	$	3,275	$	2,756

Net Unfunded Commitments (Unaudited)


In millions	June 30 2011		March 31 2011		December 31 2010		September 30 2010		June 30 2010
Net unfunded commitments	$	99,791	$	96,781	$	95,805	$	97,147	$	95,775


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit (Unaudited)

Change in Allowance for Loan and Lease Losses


Three months ended - in millions	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010
Beginning balance	$	4,759		$	4,887		$	5,231		$	5,336		$	5,319
Charge-offs:
Commercial		(185	)		(179	)		(331	)		(310	)		(313	)
Commercial real estate		(124	)		(158	)		(181	)		(102	)		(149	)
Equipment lease financing		(11	)		(14	)		(29	)		(12	)		(43	)
Residential real estate		(43	)		(58	)		(124	)		(47	)		(197	)
Home equity		(112	)		(140	)		(124	)		(160	)		(131	)
Credit card		(60	)		(74	)		(73	)		(67	)		(95	)
Other consumer		(49	)		(51	)		(62	)		(58	)		(57	)

Total charge-offs		(584	)		(674	)		(924	)		(756	)		(985	)
Recoveries:
Commercial		98			80			71			80			78
Commercial real estate		26			14			20			14			10
Equipment lease financing		15			9			18			13			13
Residential real estate		1			1			(1	)		7			13
Home equity		11			10			9			10			12
Credit card		6			6			5			5			5
Other consumer		13			21			11			13			14

Total recoveries		170			141			133			142			145
Net (charge-offs) recoveries:
Commercial		(87	)		(99	)		(260	)		(230	)		(235	)
Commercial real estate		(98	)		(144	)		(161	)		(88	)		(139	)
Equipment lease financing		4			(5	)		(11	)		1			(30	)
Residential real estate		(42	)		(57	)		(125	)		(40	)		(184	)
Home equity		(101	)		(130	)		(115	)		(150	)		(119	)
Credit card		(54	)		(68	)		(68	)		(62	)		(90	)
Other consumer		(36	)		(30	)		(51	)		(45	)		(43	)

Total net charge-offs		(414	)		(533	)		(791	)		(614	)		(840	)
Provision for credit losses		280			421			442			486			823
Acquired allowance adjustments											(2	)
Net change in allowance for unfunded loan commitments and letters of credit		2			(16	)		5			25			34

Ending balance	$	4,627		$	4,759		$	4,887		$	5,231		$	5,336

Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		1.11	%		1.44	%		2.09	%		1.61	%		2.18	%
Allowance for loan and lease losses to total loans		3.08			3.19			3.25			3.48			3.46

Commercial lending net charge-offs	$	(181	)	$	(248	)	$	(432	)	$	(317	)	$	(404	)
Consumer lending net charge-offs		(233	)		(285	)		(359	)		(297	)		(436	)

Total net charge-offs	$	(414	)	$	(533	)	$	(791	)	$	(614	)	$	(840	)

Net charge-offs to average loans
Commercial lending		.90	%		1.25	%		2.17	%		1.57	%		1.99	%
Consumer lending		1.35			1.65			2.01			1.64			2.38

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


Three months ended - in millions	June 30 2011			March 31 2011		December 31 2010			September 30 2010			June 30 2010
Beginning balance	$	204		$	188	$	193		$	218		$	252
Net change in allowance for unfunded loan commitments and letters of credit		(2	)		16		(5	)		(25	)		(34	)

Ending balance	$	202		$	204	$	188		$	193		$	218


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Purchase Accounting Accretion and Accretable Interest (Unaudited)

VALUATION OF PURCHASED IMPAIRED LOANS


	June 30, 2011						March 31, 2011						December 31, 2010
Dollars in billions	Balance			Net Investment			Balance			Net Investment			Balance			Net Investment
Commercial and commercial real estate loans:
Unpaid principal balance	$	1.4					$	1.6					$	1.8
Purchased impaired mark		(.3	)					(.3	)					(.4	)

Recorded investment		1.1						1.3						1.4
Allowance for loan losses		(.3	)					(.3	)					(.3	)

Net investment		0.8			57	%		1.0			63	%		1.1			61	%

Consumer and residential mortgage loans:
Unpaid principal balance		7.1						7.6						7.9
Purchased impaired mark		(.9	)					(1.4	)					(1.5	)

Recorded investment		6.2						6.2						6.4
Allowance for loan losses		(.7	)					(.6	)					(.6	)

Net investment		5.5			77	%		5.6			74	%		5.8			73	%


Total purchased impaired loans:
Unpaid principal balance		8.5						9.2						9.7
Purchased impaired mark		(1.2	)					(1.7	)					(1.9	)

Recorded investment		7.3						7.5						7.8
Allowance for loan losses		(1.0	)					(.9	)					(.9	)

Net investment	$	6.3			74	%	$	6.6			72	%	$	6.9			71	%

PURCHASE ACCOUNTING ACCRETION


	Three months ended
In millions	June 30 2011			March 31 2011			June 30 2010
Non-impaired loans	$	72		$	68		$	111
Impaired loans		186			160			258
Reversal of contractual interest on impaired loans		(88	)		(106	)		(136	)

Net impaired loans		98			54			122
Securities		14			9			13
Deposits		91			100			144
Borrowings		(25	)		(31	)		(14	)

Total	$	250		$	200		$	376

Cash received in excess of recorded investment from sales or payoffs of impaired commercial loans (cash recoveries)	$	40		$	81		$	164

REMAINING PURCHASE ACCOUNTING ACCRETION


In billions	June 30 2011			March 31 2011			December 31 2010
Non-impaired loans	$	1.1		$	1.1		$	1.2
Impaired loans		2.3			2.2			2.2

Total loans (gross)		3.4			3.3			3.4
Securities		.2			.2			.1
Deposits		.3			.4			.5
Borrowings		(1.0	)		(1.0	)		(1.1	)

Total	$	2.9		$	2.9		$	2.9

ACCRETABLE NET INTEREST - PURCHASED IMPAIRED LOANS


In billions				In billions
April 1, 2011	$	2.2		January 1, 2011	$	2.2
Accretion		(.2	)	Accretion		(.4	)
Cash recoveries				Cash recoveries		(.1	)
Net reclass to accretable difference and other activity		.3		Net reclass to accretable difference and other activity		.6

June 30, 2011	$	2.3		June 30, 2011	$	2.3


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


In millions	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010
Nonperforming loans, including TDRs (a)
Commercial
Retail/wholesale trade	$	148		$	180		$	197		$	219		$	242
Manufacturing		160			213			250			266			312
Service providers		189			214			218			230			223
Real estate related (b)		261			253			233			288			343
Financial services		18			27			16			36			60
Health care		38			46			50			59			55
Other industries		233			270			289			432			458

Total commercial		1,047			1,203			1,253			1,530			1,693

Commercial real estate
Real estate projects		1,289			1,468			1,422			1,562			1,661
Commercial mortgage		378			416			413			427			420

Total commercial real estate		1,667			1,884			1,835			1,989			2,081

Equipment lease financing		35			41			77			104			114

TOTAL COMMERCIAL LENDING		2,749			3,128			3,165			3,623			3,888

Consumer (c)
Home equity		421			464			448			406			405
Residential real estate
Residential mortgage (d)		630			641			764			727			713
Residential construction		36			46			54			42			79
Credit card (e)		8
Other consumer		26			29			35			38			25

TOTAL CONSUMER LENDING		1,121			1,180			1,301			1,213			1,222

Total nonperforming loans (f)		3,870			4,308			4,466			4,836			5,110

OREO and foreclosed assets
Other real estate owned (OREO) (g)		546			569			589			573			581
Foreclosed and other assets		65			63			68			97			46

OREO and foreclosed assets		611			632			657			670			627

Total nonperforming assets	$	4,481		$	4,940		$	5,123		$	5,506		$	5,737

Nonperforming loans to total loans		2.57	%		2.88	%		2.97	%		3.22	%		3.31	%
Nonperforming assets to total loans, OREO and foreclosed assets		2.97			3.29			3.39			3.65			3.70
Nonperforming assets to total assets		1.70			1.90			1.94			2.12			2.19
Allowance for loan and lease losses to nonperforming loans (f) (h)		120			110			109			108			104

(a)	See analysis of troubled debt restructurings (TDRs) on page 10.

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

(c)	Excludes most consumer loans and lines of credit, not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.

(d)	Effective in 2011, nonperforming residential real estate excludes loans of $85 million accounted for under the fair value option as of June 30, 2011 and March 31, 2011. Amounts for prior periods presented were not material.

(e)

Effective in the second quarter 2011, the commercial nonaccrual policy was applied to certain small business credit card balances. This change resulted in loans placed on nonaccrual status when they become 90 days or more past due, rather than the consumer credit card nonaccrual policy of 180 days or more past due.

(f)	Nonperforming loans do not include purchased impaired loans or loans held for sale.

(g)

Other real estate owned excludes $273 million, $233 million, $178 million, $163 million, and $167 million at June 30, 2011, March 31, 2011, December 31, 2010, September 30, 2010, and June 30, 2010, respectively, related to serviced loans insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).

(h)	The allowance for loan and lease losses includes impairment reserves attributable to purchased impaired loans. See page 8, note (a).


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

Details of Nonperforming Assets and Troubled Debt Restructurings (Unaudited)

Change in Nonperforming Assets


In millions	Jan. 1, 2011- June 30, 2011			Apr. 1, 2011 - June 30, 2011			Jan. 1, 2011- Mar. 31, 2011
Beginning balance	$	5,123		$	4,940		$	5,123
New nonperforming assets		1,846			843			1,003
Charge-offs/valuation adjustments		(713	)		(323	)		(390	)
Principal activity including paydowns and payoffs		(983	)		(603	)		(380	)
Asset sales and transfers to loans held for sale		(306	)		(128	)		(178	)
Returned to performing status		(486	)		(248	)		(238	)

Ending balance	$	4,481		$	4,481		$	4,940

Largest Individual Nonperforming Assets at June 30, 2011 (a)


In millions
Ranking	Outstandings		Industry
1	$	32	Accommodation and Food Services
2		25	Construction
3		23	Real Estate Rental & Leasing
4		23	Real Estate Rental & Leasing
5		21	Real Estate Rental & Leasing
6		20	Real Estate Rental & Leasing
7		20	Accommodation and Food Services
8		20	Real Estate Rental & Leasing
9		18	Real Estate Rental & Leasing
10		18	Real Estate Rental & Leasing

Total	$	220

As a percent of total nonperforming assets 5%

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

Troubled Debt Restructurings by Type


In millions	June 30 2011		March 31 2011		December 31 2010		September 30 2010		June 30 2010
Commercial	$	305	$	260	$	236	$	108	$	54
Consumer		1,614		1,575		1,422		1,226		1,065

Total	$	1,919	$	1,835	$	1,658	$	1,334	$	1,119

Nonperforming		845		882		784		595		500
Accrual (a)		752		639		543		424		329
Credit card (b)		322		314		331		315		290

Total	$	1,919	$	1,835	$	1,658	$	1,334	$	1,119

Loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties are considered troubled debt restructurings (TDRs). TDRs typically result from our loss mitigation activities and could include rate reductions, principal forgiveness, forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Purchased impaired loans are excluded from TDRs.

(a)	Accruing loans have demonstrated a period of at least six months of performance under the modified terms and are excluded from nonperforming loans.

(b)

Credit cards and certain small business and consumer credit agreements whose terms have been modified and are TDRs. However, since our policy is to exempt these loans from being placed on nonaccrual status as permitted by regulatory guidance as generally these loans are directly charged off in the period that they become 180 days past due, these loans are excluded from nonperforming loans.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Accruing Loans Past Due (Unaudited)

Accruing Loans Past Due 30 to 59 Days (a) (b)


	Amount						Percent of Outstandings
Dollars in millions	Jun. 30 2011		Mar. 31 2011		Dec. 31 2010		Jun. 30 2011			Mar. 31 2011			Dec. 31 2010
Commercial	$	149	$	208	$	251		.25	%		.37	%		.45	%
Commercial real estate		98		315		128		.60			1.84			.71
Equipment lease financing		9		72		37		.14			1.16			.58
Residential real estate (b)		324		327		331		2.16			2.13			2.07
Home equity		141		146		159		.42			.43			.47
Credit card		39		41		46		1.04			1.11			1.17
Other consumer (b)		185		183		260		1.09			1.09			1.53

Total	$	945	$	1,292	$	1,212		.63			.86			.81

Accruing Loans Past Due 60 to 89 Days (a) (c)
	Amount						Percent of Outstandings
Dollars in millions	Jun. 30 2011		Mar. 31 2011		Dec. 31 2010		Jun. 30 2011			Mar. 31 2011			Dec. 31 2010
Commercial	$	75	$	56	$	92		.13	%		.10	%		.17	%
Commercial real estate		71		65		62		.44			.38			.35
Equipment lease financing		2		5		2		.03			.08			.03
Residential real estate (c)		187		222		225		1.25			1.45			1.41
Home equity		91		96		91		.27			.29			.27
Credit card		23		25		32		.61			.67			.82
Other consumer (c)		104		107		101		.61			.64			.60

Total	$	553	$	576	$	605		.37			.39			.40

Accruing Loans Past Due 90 Days or More (a) (d)
	Amount						Percent of Outstandings
Dollars in millions	Jun. 30 2011		Mar. 31 2011		Dec. 31 2010		Jun. 30 2011			Mar. 31 2011			Dec. 31 2010
Commercial	$	42	$	49	$	59		.08	%		.09	%		.11	%
Commercial real estate		12		6		43		.07			.04			.24
Equipment lease financing		1				1		.02						.02
Residential real estate (d)		2,071		2,077		2,121		13.82			13.55			13.26
Home equity		182		165		174		.55			.49			.51
Credit card		45		65		77		1.20			1.75			1.96
Other consumer (d)		293		283		234		1.72			1.69			1.38

Total	$	2,646	$	2,645	$	2,709		1.76			1.77			1.80

(a)	Excludes purchased impaired loans.

(b)	Includes loans that are government guaranteed/insured loans, primarily residential mortgages, of $.3 billion, $.2 billion, and $.3 billion for June 30, 2011, March 31, 2011, and December 31, 2010, respectively.

(c)	Includes loans that are government guaranteed/insured loans, primarily residential mortgages, of $.2 billion for June 30, 2011, March 31, 2011, and December 31, 2010.

(d)	Includes loans that are government guaranteed/insured loans, primarily residential mortgages, of $2.2 billion for June 30, 2011, March 31, 2011, and December 31, 2010.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, investment management, and cash management services to consumer and small business customers within our primary geographic markets. Our customers are serviced through our branch network, call centers and online banking. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Virginia, Missouri, Delaware, Washington, D.C., and Wisconsin.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government and not-for-profit 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, our multi-seller conduit, securities underwriting, and securities sales and trading. Corporate & Institutional Banking also provides commercial loan servicing, and 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 offered nationally and internationally.

Asset Management Group includes personal wealth management for high net worth and ultra high net worth clients and institutional asset management. Wealth management products and services include financial planning, customized investment management, private banking, tailored credit solutions and trust management and administration for individuals and their families. Institutional asset management provides investment management, custody, and retirement planning services. Institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments located primarily in our geographic footprint.

Residential Mortgage Banking directly originates primarily first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint, and also originates loans through majority or minority owned affiliates. Mortgage loans represent loans collateralized by one-to-four-family residential real estate. These loans are typically underwritten to government agency and/or third party standards, and sold, servicing retained, to secondary mortgage conduits Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Banks and third-party investors, or are securitized and issued under the Government National Mortgage Association (GNMA) program. The mortgage servicing operation performs all functions related to servicing mortgage loans - primarily those in first lien position - for various investors and for loans owned by PNC. Certain loans originated through majority or minority owned affiliates are sold to others.

Distressed Assets Portfolio includes commercial residential development loans, cross-border leases, consumer brokered home equity loans, retail mortgages, non-prime mortgages, and residential construction loans. These loans require special servicing and management oversight given current market conditions. We obtained the majority of these loans through acquisitions of other companies.

BlackRock is the largest publicly traded investment management firm in the world. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, multi-asset class, alternative and cash management separate accounts and funds, including iShares^®, the global product leader in exchange-traded funds. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services globally to a broad base of clients. At June 30, 2011, our economic interest in BlackRock was 22%.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

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


	Three months ended														Six months ended
In millions Income (Loss)	June 30 2011		March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011		June 30 2010
Retail Banking	$	44	$	(18	)	$	44		$	(4	)	$	80		$	26	$	104
Corporate & Institutional Banking		448		432			543			435			448			880		816
Asset Management Group		48		43			28			43			27			91		66
Residential Mortgage Banking		55		71			3			97			91			126		169
Distressed Assets Portfolio		84		25			(71	)		20			(79	)		109		(6	)
Other, including BlackRock (b) (c) (d)		233		279			273			184			214			512		280

Income from continuing operations before noncontrolling interests	$	912	$	832		$	820		$	775		$	781		$	1,744	$	1,429


Revenue
Retail Banking	$	1,271	$	1,247		$	1,278		$	1,360		$	1,389		$	2,518	$	2,748
Corporate & Institutional Banking		1,180		1,098			1,376			1,083			1,230			2,278		2,491
Asset Management Group		226		222			224			216			217			448		444
Residential Mortgage Banking		219		258			228			284			252			477		480
Distressed Assets Portfolio		270		245			200			248			358			515		688
Other, including BlackRock (b) (c) (d)		436		561			597			407			466			997		824

Revenue from continuing operations	$	3,602	$	3,631		$	3,903		$	3,598		$	3,912		$	7,233	$	7,675

(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 business and management structure change. Certain prior period amounts have been reclassified to reflect current methodologies and our current business and management structure. Amounts are presented on a continuing operations basis and therefore exclude the earnings and revenue attributable to GIS, which we sold effective July 1, 2010.

(b)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our second quarter 2011 Form 10-Q will include additional information regarding BlackRock.

(c)

Includes earnings and gains or losses related to PNC’s equity interest in BlackRock and residual activities that do not meet the criteria for disclosure as a separate reportable business, such as gains or losses related to BlackRock transactions, integration costs, asset and liability management activities including net securities gains or losses, other-than-temporary impairment of investment securities and certain trading activities, exited businesses, equity management activities, alternative investments, intercompany eliminations, most corporate overhead, and differences between business segment performance reporting and financial statement reporting (GAAP).

(d)	Amount for the fourth quarter of 2010 includes the $160 million gain ($102 million after taxes) related to our gain on the sale of a portion of our shares of BlackRock stock as part of BlackRock’s November 2010 secondary common stock offering.


Period-end Employees	June 30 2011		March 31 2011		December 31 2010		September 30 2010		June 30 2010
Full-time employees
Retail Banking		21,044		20,932		20,925		21,203		21,380
Corporate & Institutional Banking		3,864		3,761		3,756		3,660		3,601
Asset Management Group		3,053		3,042		3,001		2,975		2,964
Residential Mortgage Banking		3,688		3,682		3,539		3,339		3,348
Distressed Assets Portfolio		121		127		152		155		169
Other
Operations & Technology		8,856		8,787		8,727		8,704		8,959
Staff Services and Other (e)		4,889		4,855		4,717		4,584		9,069

Total Other		13,745		13,642		13,444		13,288		18,028

Total full-time employees		45,515		45,186		44,817		44,620		49,490

Retail Banking part-time employees		5,112		4,981		4,965		4,799		4,790
Other part-time employees		1,216		959		987		974		1,104

Total part-time employees		6,328		5,940		5,952		5,773		5,894

Total		51,843		51,126		50,769		50,393		55,384

The period end employee statistics for the businesses reflect staff directly employed by the respective business, and exclude operations, technology and staff services employees that may perform services for the business.

(e)	Includes GIS employees totaling 4,528 at June 30, 2010. We sold GIS effective July 1, 2010.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

Retail Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
INCOME STATEMENT
Net interest income	$	810		$	818		$	826		$	861		$	879		$	1,628		$	1,748
Noninterest income
Service charges on deposits		125			117			125			157			204			242			399
Brokerage		52			53			52			53			55			105			108
Consumer services		253			228			239			242			223			481			431
Other		31			31			36			47			28			62			62

Total noninterest income		461			429			452			499			510			890			1,000

Total revenue		1,271			1,247			1,278			1,360			1,389			2,518			2,748
Provision for credit losses		180			276			157			327			280			456			619
Noninterest expense		1,021			1,001			1,048			1,039			994			2,022			1,969

Pretax earnings (loss)		70			(30	)		73			(6	)		115			40			160
Income taxes (benefit)		26			(12	)		29			(2	)		35			14			56

Earnings (loss)	$	44		$	(18	)	$	44		$	(4	)	$	80		$	26		$	104

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	25,905		$	26,064		$	26,189		$	26,289		$	26,510		$	25,984		$	26,665
Indirect auto		2,756			2,400			2,318			2,170			2,005			2,579			1,950
Indirect other		1,519			1,612			1,695			1,792			1,939			1,565			2,009
Education		8,881			9,101			8,758			8,817			8,342			8,991			8,202
Credit cards		3,681			3,731			3,827			3,901			3,948			3,706			4,013
Other		1,808			1,823			1,840			1,805			1,776			1,815			1,784

Total consumer		44,550			44,731			44,627			44,774			44,520			44,640			44,623
Commercial and commercial real estate		10,636			10,786			10,897			11,086			11,275			10,711			11,365
Floor plan		1,473			1,572			1,482			1,267			1,299			1,522			1,297
Residential mortgage		1,196			1,287			1,389			1,528			1,683			1,241			1,741

Total loans		57,855			58,376			58,395			58,655			58,777			58,114			59,026
Goodwill and other intangible assets		5,751			5,769			5,803			5,837			5,873			5,760			5,904
Other assets		2,150			2,524			2,180			2,511			3,354			2,336			3,248

Total assets	$	65,756		$	66,669		$	66,378		$	67,003		$	68,004		$	66,210		$	68,178

Deposits
Noninterest-bearing demand	$	18,441		$	18,102		$	17,723		$	17,144		$	17,240		$	18,272		$	17,009
Interest-bearing demand		21,867			20,920			20,140			19,767			19,977			21,397			19,597
Money market		40,767			40,382			40,362			40,148			40,283			40,575			39,992

Total transaction deposits		81,075			79,404			78,225			77,059			77,500			80,244			76,598
Savings		8,136			7,573			7,155			7,029			7,006			7,856			6,780
Certificates of deposit		34,058			35,364			37,949			40,378			42,313			34,708			43,955

Total deposits		123,269			122,341			123,329			124,466			126,819			122,808			127,333
Other liabilities		765			1,147			1,087			1,444			1,656			955			1,654
Capital		8,246			8,048			8,323			8,582			8,538			8,147			8,424

Total liabilities and equity	$	132,280		$	131,536		$	132,739		$	134,492		$	137,013		$	131,910		$	137,411

PERFORMANCE RATIOS
Return on average capital		2	%		(1	) %		2	%		—	%		4	%		1	%		2	%
Return on average assets		.27			(.11	)		.26			(.02	)		.47			.08			.31
Noninterest income to total revenue		36			34			35			37			37			35			36
Efficiency		80			80			82			76			72			80			72

(a)	See note (a) on page 13.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

Retail Banking (Unaudited) (Continued)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
OTHER INFORMATION (a)
Credit-related statistics:
Commercial nonperforming assets	$	301		$	301		$	297		$	262		$	297
Consumer nonperforming assets		403			409			422			400			336

Total nonperforming assets	$	704		$	710		$	719		$	662		$	633

Impaired loans (b)	$	826		$	869		$	895		$	939		$	974

Commercial lending net charge-offs	$	65		$	67		$	49		$	85		$	100		$	132		$	196
Credit card lending net charge-offs		54			68			68			63			89			122			185
Consumer lending (excluding credit card) net charge-offs		104			122			108			99			109			226			217

Total net charge-offs	$	223		$	257		$	225		$	247		$	298		$	480		$	598

Commercial lending annualized net charge-off ratio		2.15	%		2.20	%		1.57	%		2.73	%		3.19	%		2.18	%		3.12	%
Credit card lending annualized net charge-off ratio		5.88	%		7.39	%		7.05	%		6.41	%		9.04	%		6.64	%		9.30	%
Consumer lending (excluding credit card) annualized net charge-off ratio		.99	%		1.17	%		1.02	%		.93	%		1.03	%		1.08	%		1.03	%

Total annualized net charge-off ratio		1.55	%		1.79	%		1.53	%		1.67	%		2.03	%		1.67	%		2.04	%

Home equity portfolio credit statistics:
% of first lien positions (c)		37	%		36	%		36	%		35	%		35	%
Weighted average loan-to-value ratios (c)		73	%		73	%		73	%		73	%		73	%
Weighted average FICO scores (d)		743			731			726			725			727
Annualized net charge-off ratio		1.00	%		1.31	%		.97	%		.90	%		1.01	%		1.16	%		.86	%
Loans 30 - 59 days past due		.48	%		.47	%		.49	%		.49	%		.45	%
Loans 60 - 89 days past due		.30	%		.31	%		.30	%		.30	%		.29	%
Loans 90 days past due		1.02	%		.99	%		1.02	%		.94	%		.91	%

Other statistics:
ATMs		6,707			6,660			6,673			6,626			6,539
Branches (e)		2,459			2,446			2,470			2,461			2,458

Customer-related statistics:
Retail Banking checking relationships		5,627,000			5,521,000			5,465,000			5,438,000			5,389,000
Retail online banking active customers		3,354,000			3,226,000			3,057,000			2,968,000			2,774,000
Retail online bill payment active customers		1,045,000			1,029,000			977,000			942,000			870,000

Brokerage statistics:
Financial consultants (f)		712			700			694			713			711
Full service brokerage offices		37			34			34			40			41
Brokerage account assets (billions)	$	35		$	35		$	34		$	33		$	33

(a)	Presented as of period end, except for net charge-offs and annualized net charge-off ratios, which are for the three months ended and six months ended, respectively.

(b)	Recorded investment of purchased impaired loans related to acquisitions.

(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)	Excludes certain satellite branches that provide limited products and/or services.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Corporate & Institutional Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
INCOME STATEMENT
Net interest income	$	848		$	799		$	917		$	846		$	934		$	1,647		$	1,824
Noninterest income
Corporate service fees		197			187			334			148			237			384			479
Other		135			112			125			89			59			247			188

Noninterest income		332			299			459			237			296			631			667

Total revenue		1,180			1,098			1,376			1,083			1,230			2,278			2,491
Provision for (recoveries of) credit losses		31			(30	)		18			(48	)		97			1			333
Noninterest expense		443			445			506			447			422			888			868

Pretax earnings		706			683			852			684			711			1,389			1,290
Income taxes		258			251			309			249			263			509			474

Earnings	$	448		$	432		$	543		$	435		$	448		$	880		$	816

AVERAGE BALANCE SHEET
Loans
Commercial	$	34,673		$	33,194		$	31,895		$	32,196		$	33,006		$	33,939		$	33,541
Commercial real estate		13,839			14,347			15,035			15,897			17,010			14,091			17,483
Commercial - real estate related		3,494			3,463			3,254			3,021			2,901			3,478			3,014
Asset-based lending		7,961			7,370			6,893			6,362			6,066			7,667			6,003
Equipment lease financing		5,483			5,540			5,605			5,750			5,265			5,511			5,292

Total loans		65,450			63,914			62,682			63,226			64,248			64,686			65,333
Goodwill and other intangible assets		3,456			3,484			3,449			3,553			3,660			3,470			3,727
Loans held for sale		1,229			1,341			1,644			1,427			1,409			1,285			1,409
Other assets		8,877			8,241			8,890			8,724			7,712			8,561			7,826

Total assets	$	79,012		$	76,980		$	76,665		$	76,930		$	77,029		$	78,002		$	78,295

Deposits
Noninterest-bearing demand	$	29,504		$	27,843		$	27,544		$	25,259		$	23,715		$	28,678		$	22,997
Money market		12,643			12,131			11,880			12,105			12,380			12,388			12,317
Other		5,149			6,057			6,632			6,833			6,856			5,601			7,231

Total deposits		47,296			46,031			46,056			44,197			42,951			46,667			42,545
Other liabilities		12,871			12,205			13,155			12,936			10,797			12,540			10,833
Capital		7,928			7,858			8,073			8,487			9,002			7,893			8,902

Total liabilities and equity	$	68,095		$	66,094		$	67,284		$	65,620		$	62,750		$	67,100		$	62,280

PERFORMANCE RATIOS
Return on average capital		23	%		22	%		27	%		20	%		20	%		22	%		18	%
Return on average assets		2.27			2.28			2.81			2.24			2.33			2.28			2.10
Noninterest income to total revenue		28			27			33			22			24			28			27
Efficiency		38			41			37			41			34			39			35

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	266		$	266		$	263		$	265		$	282		$	266		$	287
Acquisitions/additions		13			10			12			8			7			23			15
Repayments/transfers		(11	)		(10	)		(9	)		(10	)		(24	)		(21	)		(37	)

End of period	$	268		$	266		$	266		$	263		$	265		$	268		$	265

OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management	$	292		$	301		$	305		$	320		$	299		$	593		$	595
Capital Markets	$	165		$	139		$	205		$	116		$	124		$	304		$	285
Commercial mortgage loans held for sale (c)	$	23		$	29		$	9		$	24		$	(2	)	$	52		$	25
Commercial mortgage loan servicing income, net of amortization (d)		29			47			48			41			63			76			155
Commercial mortgage servicing rights (impairment)/recovery (e)		(40	)		(35	)		59			(81	)		(14	)		(75	)		(18	)

Total commercial mortgage banking activities	$	12		$	41		$	116		$	(16	)	$	47		$	53		$	162
Total loans (f)	$	66,142		$	64,368		$	63,695		$	62,477		$	63,994
Net carrying amount of commercial mortgage servicing rights (f)	$	592		$	645		$	665		$	616		$	722
Credit-related statistics:
Nonperforming assets (f)	$	2,260		$	2,574		$	2,594		$	3,064		$	3,103
Impaired loans (f) (g)	$	603		$	659		$	714		$	890		$	923
Net charge-offs	$	85		$	153		$	349		$	211		$	243		$	238		$	514

(a)	See note (a) on page 13.

(b)	Represents consolidated PNC amounts.

(c)	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.

(d)	Includes net interest income and noninterest income from loan servicing and ancillary services, net of commercial mortgage servicing rights amortization. Commercial mortgage servicing rights (impairment)/recovery is shown separately.

(e)	See note (a) on page 1.

(f)	Presented as of period end.

(g)	Recorded investment of purchased impaired loans related to acquisitions.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

Asset Management Group (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
INCOME STATEMENT
Net interest income	$	59		$	60		$	65		$	66		$	62		$	119		$	125
Noninterest income		167			162			159			150			155			329			319

Total revenue		226			222			224			216			217			448			444
Provision for (recoveries of) credit losses		(18	)		(6	)		9			(12	)		14			(24	)		23
Noninterest expense		168			160			171			160			160			328			316

Pretax earnings		76			68			44			68			43			144			105
Income taxes		28			25			16			25			16			53			39

Earnings	$	48		$	43		$	28		$	43		$	27		$	91		$	66

AVERAGE BALANCE SHEET
Loans
Consumer	$	4,069		$	4,054		$	4,083		$	4,020		$	4,003		$	4,062		$	3,998
Commercial and commercial real estate		1,289			1,503			1,426			1,447			1,422			1,395			1,432
Residential mortgage		711			715			723			802			915			713			939

Total loans		6,069			6,272			6,232			6,269			6,340			6,170			6,369
Goodwill and other intangible assets		365			374			384			394			403			370			409
Other assets		221			272			271			236			249			246			238

Total assets	$	6,655		$	6,918		$	6,887		$	6,899		$	6,992		$	6,786		$	7,016

Deposits
Noninterest-bearing demand	$	1,063		$	1,162		$	1,432		$	1,364		$	1,268		$	1,112		$	1,249
Interest-bearing demand		2,311			2,291			2,033			1,869			1,735			2,301			1,717
Money market		3,557			3,597			3,393			3,258			3,261			3,577			3,239

Total transaction deposits		6,931			7,050			6,858			6,491			6,264			6,990			6,205
CDs/IRAs/Savings deposits		651			677			694			714			769			664			793

Total deposits		7,582			7,727			7,552			7,205			7,033			7,654			6,998
Other liabilities		71			70			74			81			92			70			102
Capital		353			344			380			413			398			349			408

Total liabilities and equity	$	8,006		$	8,141		$	8,006		$	7,699		$	7,523		$	8,073		$	7,508

PERFORMANCE RATIOS
Return on average capital		55	%		51	%		29	%		41	%		27	%		53	%		33	%
Return on average assets		2.89			2.52			1.61			2.47			1.55			2.70			1.90
Noninterest income to total revenue		74			73			71			69			71			73			72
Efficiency		74			72			76			74			74			73			71

OTHER INFORMATION
Total nonperforming assets (b)	$	69		$	74		$	90		$	102		$	114
Impaired loans (b) (c)	$	135		$	143		$	146		$	155		$	182
Total net charge-offs (recoveries)	$	—		$	(11	)	$	21		$	1		$	16		$	(11	)	$	20

ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	102		$	102		$	99		$	95		$	92
Institutional		117			117			113			111			107

Total	$	219		$	219		$	212		$	206		$	199

Asset Type
Equity	$	121		$	120		$	115		$	107		$	98
Fixed income		65			64			63			66			64
Liquidity/Other		33			35			34			33			37

Total	$	219		$	219		$	212		$	206		$	199

Discretionary assets under management
Personal	$	70		$	71		$	69		$	67		$	65
Institutional		39			39			39			38			34

Total	$	109		$	110		$	108		$	105		$	99

Asset Type
Equity	$	56		$	57		$	55		$	51		$	46
Fixed income		37			36			36			38			36
Liquidity/Other		16			17			17			16			17

Total	$	109		$	110		$	108		$	105		$	99

Nondiscretionary assets under administration
Personal	$	32		$	31		$	30		$	28		$	27
Institutional		78			78			74			73			73

Total	$	110		$	109		$	104		$	101		$	100

Asset Type
Equity	$	65		$	63		$	60		$	56		$	52
Fixed income		28			28			27			28			28
Liquidity/Other		17			18			17			17			20

Total	$	110		$	109		$	104		$	101		$	100

(a)	See note (a) on page 13.

(b)	As of period end.

(c)	Recorded investment of purchased impaired loans related to acquisitions.

(d)	Excludes brokerage account assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Residential Mortgage Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
INCOME STATEMENT
Net interest income	$	47		$	56		$	60		$	52		$	70		$	103		$	144
Noninterest income
Loan servicing revenue
Servicing fees		63			50			46			61			66			113			135
Net MSR hedging gains		52			64			47			86			66			116			112
Loan sales revenue		52			84			66			77			49			136			88
Other		5			4			9			8			1			9			1

Total noninterest income		172			202			168			232			182			374			336

Total revenue		219			258			228			284			252			477			480
Provision for (recoveries of) credit losses		(8	)		8			8			21			(8	)					(24	)
Noninterest expense		140			137			215			119			109			277			229

Pretax earnings		87			113			5			144			151			200			275
Income taxes		32			42			2			47			60			74			106

Earnings	$	55		$	71		$	3		$	97		$	91		$	126		$	169

AVERAGE BALANCE SHEET
Portfolio loans	$	2,703		$	2,734		$	2,667		$	2,572		$	2,540		$	2,718		$	2,679
Loans held for sale		1,464			1,802			1,731			1,427			1,148			1,632			1,062
Mortgage servicing rights (MSR)		1,027			1,048			863			863			1,084			1,037			1,173
Other assets		5,628			6,035			5,008			4,302			3,914			5,831			3,856

Total assets	$	10,822		$	11,619		$	10,269		$	9,164		$	8,686		$	11,218		$	8,770

Deposits	$	1,569		$	1,587		$	2,089		$	2,108		$	3,088		$	1,578		$	3,344
Borrowings and other liabilities		3,253			4,144			3,444			2,740			2,817			3,696			2,550
Capital		667			729			745			767			977			698			1,085

Total liabilities and equity	$	5,489		$	6,460		$	6,278		$	5,615		$	6,882		$	5,972		$	6,979

PERFORMANCE RATIOS
Return on average capital		33	%		39	%		2	%		50	%		37	%		36	%		31	%
Return on average assets		2.04			2.48			.12			4.20			4.20			2.27			3.89
Noninterest income to total revenue		79			78			74			82			72			78			70
Efficiency		64			53			94			42			43			58			48

RESIDENTIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	127		$	125		$	131		$	137		$	141		$	125		$	145
Acquisitions					5												5
Additions		4			3			3			3			2			7			4
Repayments/transfers		(6	)		(6	)		(9	)		(9	)		(6	)		(12	)		(12	)

End of period		125			127			125			131			137			125			137

Servicing portfolio statistics: (b)
Fixed rate		90	%		90	%		89	%		89	%		89	%
Adjustable rate/balloon		10	%		10	%		11	%		11	%		11	%
Weighted average interest rate		5.49	%		5.53	%		5.62	%		5.69	%		5.74	%
MSR capitalized value (in billions)	$	1.0		$	1.1		$	1.0		$	.8		$	1.0
MSR capitalization value (in basis points)		80			88			82			60			71
Weighted average servicing fee (in basis points)		29			30			30			30			30

OTHER INFORMATION
Loan origination volume (in billions)	$	2.6		$	3.2		$	3.5		$	2.7		$	2.3		$	5.8		$	4.3
Percentage of originations represented by:
Agency and government programs		100	%		100	%		99	%		99	%		99	%		100	%		99	%
Refinance volume		68	%		85	%		83	%		76	%		58	%		77	%		65	%
Total nonperforming assets (b)	$	65		$	78		$	172		$	164		$	160
Impaired loans (b) (c)	$	141		$	158		$	161		$	173		$	168

(a)	See note (a) on page 13.

(b)	As of period end.

(c)	Recorded investment of purchased impaired loans related to acquisitions.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19

Distressed Assets Portfolio (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions	June 30 2011			March 31 2011			December 31 2010			September 30 2010			June 30 2010			June 30 2011			June 30 2010
INCOME STATEMENT
Net interest income	$	257		$	236		$	256		$	283		$	348		$	493		$	690
Noninterest income		13			9			(56	)		(35	)		10			22			(2	)

Total revenue		270			245			200			248			358			515			688
Provision for credit losses		81			152			231			176			404			233			569
Noninterest expense		56			53			81			46			75			109			123

Pretax earnings (loss)		133			40			(112	)		26			(121	)		173			(4	)
Income taxes (benefit)		49			15			(41	)		6			(42	)		64			2

Earnings (loss)	$	84		$	25		$	(71	)	$	20		$	(79	)	$	109		$	(6	)

AVERAGE BALANCE SHEET
Commercial lending:
Commercial/Commercial real estate	$	1,363		$	1,582		$	1,840		$	2,088		$	2,442		$	1,477		$	2,520
Equipment lease financing		697			757			759			753			807			727			805

Total commercial lending		2,060			2,339			2,599			2,841			3,249			2,204			3,325

Consumer lending:
Consumer		5,301			5,559			5,903			6,144			6,350			5,429			6,461
Residential real estate		6,265			6,332			6,845			7,205			8,120			6,293			8,155

Total consumer lending		11,566			11,891			12,748			13,349			14,470			11,722			14,616

Total loans		13,626			14,230			15,347			16,190			17,719			13,926			17,941
Other assets (b)		(256	)		(109	)		15			555			797			(183	)		1,068

Total assets	$	13,370		$	14,121		$	15,362		$	16,745		$	18,516		$	13,743		$	19,009

Deposits										$	2		$	180					$	133
Other liabilities	$	137		$	159		$	128			102			77		$	148			66
Capital		1,422			1,371			1,476			1,605			1,671			1,397			1,702

Total liabilities and equity	$	1,559		$	1,530		$	1,604		$	1,709		$	1,928		$	1,545		$	1,901

PERFORMANCE RATIOS
Return on average capital		24	%		7	%		(19	) %		5	%		(19	) %		16	%		(1	) %
Return on average assets		2.52			.72			(1.83	)		.47			(1.71	)		1.60			(.06	)

OTHER INFORMATION
Nonperforming assets (c)	$	1,087		$	1,208		$	1,242		$	1,218		$	1,435
Impaired loans (c) (d)	$	5,543		$	5,685		$	5,879		$	6,001		$	6,867
Net charge-offs	$	96		$	123		$	183		$	107		$	276		$	219		$	387
Annualized net charge-off ratio		2.83	%		3.51	%		4.73	%		2.62	%		6.25	%		3.17	%		4.35	%

LOANS (in billions) (c)
Commercial lending:
Commercial/Commercial real estate	$	1,222		$	1,474		$	1,684		$	1,911		$	2,282
Equipment lease financing		701			695			764			757			757

Total commercial lending		1,923			2,169			2,448			2,668			3,039

Consumer lending:
Consumer		5,240			5,381			5,769			6,011			6,323
Residential real estate		6,250			6,325			6,564			7,014			7,911

Total consumer lending		11,490			11,706			12,333			13,025			14,234

Total loans	$	13,413		$	13,875		$	14,781		$	15,693		$	17,273

(a)	See note (a) on page 13.

(b)	Other assets were negative in the second and first quarters of 2011 due to a decline in deferred taxes and an increase in loan reserve.

(c)	As of period end.

(d)	Recorded investment of purchased impaired loans related to acquisitions.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 20

Glossary of Terms

Accretable net interest (Accretable yield) - The excess of cash flows expected to be collected on a purchased impaired loan over the carrying value of the loan. The accretable net interest is recognized into interest income over the remaining life of the loan using the constant effective yield method.

Adjusted average total assets - Primarily comprised of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on investment 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.

Cash recoveries - Cash recoveries used in the context of purchased impaired loans represent cash payments from customers that exceeded the recorded investment of the designated impaired loan.

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 from portfolio holdings to held for sale by reducing the loan carrying amount to the fair value of the loan, if fair value is less than carrying amount.

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

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.

Derivatives - Financial contracts whose value is derived from changes in publicly traded securities, interest rates, currency exchange rates or market indices. Derivatives cover a wide assortment of financial contracts, including but not limited to 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; interest-earning deposits with banks; loans held for sale; loans; investment securities; and certain other assets.

Economic capital - Represents the amount of resources that a business or 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.

Efficiency - Noninterest expense divided by total revenue.

Fair value - The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 21

FICO score - A credit bureau-based industry standard score created by Fair Isaac Co. which predicts the likelihood of borrower default. We use FICO scores both in underwriting and assessing credit risk in our consumer lending portfolio. Lower FICO scores indicate likely higher risk of default, while higher FICO scores indicate likely lower risk of default. FICO scores are updated on a periodic basis.

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.

Investment securities - Collectively, securities available for sale and securities held to maturity.

Leverage ratio - Tier 1 risk-based capital divided by adjusted average total assets.

LIBOR - Acronym for London InterBank Offered Rate. LIBOR is the average interest rate charged when banks in the London wholesale money market (or interbank market) borrow unsecured funds from each other. LIBOR rates are used as a benchmark for interest rates on a global basis.

Loan-to-value ratio (LTV) - A calculation of a loan’s collateral coverage that is used both in underwriting and assessing credit risk in our lending portfolio. LTV is the sum total of loan obligations secured by collateral divided by the market value of that same collateral. Market values of the collateral are based on an independent valuation of the collateral. For example, an LTV of less than 90% is better secured and has less credit risk than an LTV of greater than or equal to 90%. Our real estate market values are updated on an annual basis but may be updated more frequently for select loans.

Loss Given Default (LGD) - An estimate of recovery based on collateral type, collateral value, loan exposure, or the guarantor(s) quality and guaranty type (full or partial). Each loan has its own LGD. The LGD risk rating measures the percentage of exposure of a specific credit obligation that we expect to lose if default occurs. LGD is net of recovery, through either liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings. The LGD rating is updated with the same frequency as the borrower’s PD rating, and should be done more frequently than the PD if the collateral values and amounts change often.

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.

Nonaccretable difference - Contractually required payments receivable on a purchased impaired loan in excess of the cash flows expected to be collected.

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.

Nonperforming assets - Nonperforming assets include non-accrual loans, certain non-accrual troubled debt restructured loans, OREO, foreclosed and other assets. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans - Loans for which we do not accrue interest income. Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, consumer (including loans and lines of credit secured by residential real estate), and residential real estate (including mortgages and construction) customers as well as certain non-accrual troubled debt restructured loans. Nonperforming loans do not include loans held for sale or OREO and foreclosed assets. Nonperforming loans do not include purchased impaired loans as we are currently accreting interest income over the expected life of the loans.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 22

Operating leverage - The period to period dollar or percentage change in total revenue (GAAP basis) less the dollar or percentage change in noninterest expense. A positive variance indicates that revenue growth exceeded expense growth (i.e., positive operating leverage) while a negative variance implies expense growth exceeded revenue growth (i.e., negative operating leverage).

Other real estate owned (OREO) - Foreclosed assets taken in settlement of troubled loans through surrender or foreclosure. Foreclosed assets include all assets received in full or partial satisfaction of a loan and include real and personal property, equity interests in corporations, partnerships, joint ventures, and beneficial interests in trusts. Premises that are no longer used in operations may also be included in real estate owned.

Other-than-temporary impairment (OTTI) - When the fair value of a security is less than its amortized cost basis, an assessment is performed to determine whether the impairment is other-than-temporary. If we intend to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, an other-than-temporary impairment is considered to have occurred. In such cases, an other-than-temporary impairment is recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. Further, if we do not expect to recover the entire amortized cost of the security, an other-than-temporary impairment is considered to have occurred. However for debt securities, if we do not intend to sell the security and it is not more likely than not that we will be required to sell the security before its recovery, the other-than-temporary loss is separated into (a) the amount representing the credit loss, and (b) the amount related to all other factors. The other-than-temporary impairment related to credit losses is recognized in earnings while the amount related to all other factors is recognized in other comprehensive income, net of tax.

Pretax earnings - Income from continuing operations before income taxes and noncontrolling interests.

Pretax, pre-provision earnings from continuing operations - Total revenue less noninterest expense, both from continuing operations.

Probability of Default (PD) - An internal risk rating that indicates the likelihood that a credit obligor will enter into default status.

Provision-adjusted net interest margin - Net interest margin less the ratio of the annualized provision for credit losses to average interest-earning assets.

Purchase accounting accretion - Accretion of the discounts and premiums on acquired assets and liabilities. The purchase accounting accretion is recognized in net interest income over the weighted average life of the financial instruments using the constant effective yield method.

Purchased impaired loans - Acquired loans determined to be credit impaired under FASB ASC 310-30 (AICPA SOP 03-3). Loans are determined to be impaired if there is evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected.

Recorded investment - The initial investment of a purchased impaired loan plus interest accretion and less any cash payments and writedowns to date. The recorded investment excludes any valuation allowance which is included in our allowance for loan and lease losses.

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.

Residential development loans - Project-specific loans to commercial customers for the construction or development of residential real estate including land, single family homes, condominiums and other residential properties. This would exclude loans to commercial customers where proceeds are for general corporate purposes whether or not such facilities are secured.

Residential mortgage servicing rights hedge gains/(losses), net - We have elected to measure acquired or originated residential mortgage servicing rights (MSRs) at fair value under GAAP. We employ a risk management strategy designed to protect the economic value of MSRs from changes in interest rates. This strategy utilizes securities and a portfolio of derivative instruments to hedge changes in the fair value of MSRs arising from changes in interest rates. These financial instruments are expected to have changes in fair value which are negatively correlated to the change in fair value of the MSR portfolio. Net MSR hedge gains/(losses) represent the change in the fair value of MSRs, exclusive of changes due to time decay and payoffs, combined with the change in the fair value of the associated securities and derivative instruments.

Return on average assets - Annualized net income divided by average assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 23

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

Return on average common shareholders’ equity - Annualized net income less preferred stock dividends, including preferred stock discount accretion and redemptions, divided by average common shareholders’ equity.

Risk-weighted assets - 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.

Servicing rights - An intangible asset or liability created by an obligation to service assets for others. Typical servicing rights include the right to receive a fee for collecting and forwarding payments on loans and related taxes and insurance premiums held in escrow.

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 common capital - Tier 1 risk-based capital, less preferred equity, less trust preferred capital securities, and less noncontrolling interests.

Tier 1 common capital ratio - Tier 1 common capital divided by period-end risk-weighted assets.

Tier 1 risk-based capital - Total shareholders’ equity, plus trust preferred capital securities, plus certain noncontrolling interests that are held by others; less goodwill and certain other intangible assets (net of eligible deferred taxes relating to taxable and nontaxable combinations), less equity investments in nonfinancial companies less ineligible servicing assets 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 equity - Total shareholders’ equity plus noncontrolling interests.

Total risk-based capital - Tier 1 risk-based capital plus qualifying subordinated debt and trust preferred securities, other noncontrolling interest not qualified as Tier 1, eligible gains on available for sale equity securities 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 interest-bearing money market deposits, interest-bearing demand deposits, and noninterest-bearing deposits.

Troubled debt restructuring - A restructuring of a loan whereby the lender for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that the lender would not otherwise consider.

Watchlist - A list of criticized loans, credit exposure or other assets compiled for internal monitoring purposes. We define criticized exposure for this purpose as exposure with an internal risk rating of other assets especially mentioned, substandard, doubtful or loss.

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.