EX-99.1

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2017

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2017

(UNAUDITED)


	Page
Consolidated Results:

Income Statement		1
Balance Sheet		2
Average Balance Sheet		3
Details of Net Interest Margin		4
Per Share Related Information		5
Loans		5
Allowance for Credit Losses		6
Nonperforming Assets		7-8
Accruing Loans Past Due		9


Business Segment Results:

Descriptions			10
Period End Employees			10
Income and Revenue			11
Retail Banking			12-13
Corporate & Institutional Banking			14
Asset Management Group			15

Glossary of Terms			16-18

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on April 13, 2017. 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 and asset management, providing many of its products and services nationally, as well as other products and services in PNC’s primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Georgia, Alabama, Missouri, Wisconsin and South Carolina. PNC also provides certain products and services internationally.

The PNC Financial Services Group, Inc.

Cross-Reference Index to First Quarter 2017 Financial Supplement (Unaudited)

Financial Supplement Table Reference


Table	Description	Page
1	Consolidated Income Statement		1
2	Consolidated Balance Sheet		2
3	Average Consolidated Balance Sheet		3
4	Details of Net Interest Margin		4
5	Per Share Related Information		5
6	Details of Loans		5
7	Change in Allowance for Loan and Lease Losses		6
8	Nonperforming Assets By Type		7
9	Change in Nonperforming Assets		8
10	Largest Individual Nonperforming Assets at March 31, 2017		8
11	Accruing Loans Past Due 30 To 59 Days		9
12	Accruing Loans Past Due 60 To 89 Days		9
13	Accruing Loans Past Due 90 Days or More		9
14	Period End Employees		10
15	Summary of Business Segment Income and Revenue		11
16	Retail Banking		12-13
17	Corporate & Institutional Banking		14
18	Asset Management Group		15


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Table 1: Consolidated Income Statement (Unaudited)


	Three months ended
In millions, except per share data	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Interest Income
Loans	$	1,904		$	1,886		$	1,856		$	1,829		$	1,843
Investment securities		493			457			451			456			462
Other		123			110			101			99			102

Total interest income		2,520			2,453			2,408			2,384			2,407

Interest Expense
Deposits		120			114			107			104			105
Borrowed funds		240			209			206			212			204

Total interest expense		360			323			313			316			309

Net interest income		2,160			2,130			2,095			2,068			2,098

Noninterest Income
Asset management		403			399			404			377			341
Consumer services		332			349			348			354			337
Corporate services		393			387			389			403			325
Residential mortgage		113			142			160			165			100
Service charges on deposits		161			172			174			163			158
Other (a)		322			295			259			264			306

Total noninterest income		1,724			1,744			1,734			1,726			1,567

Total revenue		3,884			3,874			3,829			3,794			3,665
Provision For Credit Losses		88			67			87			127			152
Noninterest Expense
Personnel		1,249			1,231			1,239			1,226			1,145
Occupancy		222			210			215			215			221
Equipment		251			254			246			240			234
Marketing		55			60			72			61			54
Other		625			686			622			618			627

Total noninterest expense		2,402			2,441			2,394			2,360			2,281

Income before income taxes and noncontrolling interests		1,394			1,366			1,348			1,307			1,232
Income taxes		320			319			342			318			289

Net income		1,074			1,047			1,006			989			943

Less: Net income (loss) attributable to noncontrolling interests		17			22			18			23			19
Preferred stock dividends (b)		63			42			63			42			63
Preferred stock discount accretion and redemptions		21			1			1			1			2

Net income attributable to common shareholders	$	973		$	982		$	924		$	923		$	859

Earnings Per Common Share
Basic	$	1.99		$	2.01		$	1.87		$	1.84		$	1.70
Diluted	$	1.96		$	1.97		$	1.84		$	1.82		$	1.68

Average Common Shares Outstanding
Basic		487			487			490			497			501
Diluted		492			494			496			503			507

Efficiency		62	%		63	%		63	%		62	%		62	%
Noninterest income to total revenue		44	%		45	%		45	%		45	%		43	%
Effective tax rate (c)		23.0	%		23.4	%		25.4	%		24.3	%		23.5	%

(a)	Includes net gains (losses) on sales of securities of $(2) million, $(4) million, $7 million, $4 million, and $9 million for the quarters ended March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively.

(b)	Dividends are payable quarterly other than Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

(c)	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 PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)


In millions, except par value	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Assets
Cash and due from banks	$	5,003		$	4,879		$	4,531		$	4,196		$	3,861
Interest-earning deposits with banks (a)		27,877			25,711			27,058			26,750			29,478
Loans held for sale (b)		1,414			2,504			2,053			2,296			1,541
Investment securities - available for sale		59,339			60,104			61,941			56,884			57,415
Investment securities - held to maturity		17,093			15,843			16,573			14,917			15,154
Loans (b)		212,826			210,833			210,446			209,056			207,485
Allowance for loan and lease losses		(2,561	)		(2,589	)		(2,619	)		(2,685	)		(2,711	)

Net loans		210,265			208,244			207,827			206,371			204,774
Equity investments (c)		10,900			10,728			10,605			10,469			10,391
Mortgage servicing rights		1,867			1,758			1,293			1,222			1,323
Goodwill		9,103			9,103			9,103			9,103			9,103
Other (b)		28,083			27,506			28,364			29,127			27,945

Total assets	$	370,944		$	366,380		$	369,348		$	361,335		$	360,985

Liabilities
Deposits
Noninterest-bearing	$	79,246		$	80,230		$	82,159		$	77,866		$	78,151
Interest-bearing		181,464			176,934			177,736			171,912			172,208

Total deposits		260,710			257,164			259,895			249,778			250,359
Borrowed funds
Federal Home Loan Bank borrowings		19,549			17,549			17,050			18,055			19,058
Bank notes and senior debt		23,745			22,972			22,431			23,588			21,594
Subordinated debt		6,889			8,009			8,708			8,764			8,707
Other (b)		4,879			4,176			3,352			4,164			4,819

Total borrowed funds		55,062			52,706			51,541			54,571			54,178
Allowance for unfunded loan commitments and letters of credit		305			301			310			303			282
Accrued expenses and other liabilities		8,964			9,355			10,757			9,984			9,838

Total liabilities		325,041			319,526			322,503			314,636			314,657

Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares		2,709			2,709			2,709			2,709			2,708
Capital surplus		16,275			16,651			16,159			16,108			16,039
Retained earnings		32,372			31,670			30,958			30,309			29,642
Accumulated other comprehensive income (loss)		(279	)		(265	)		646			736			532
Common stock held in treasury at cost: 57, 57, 54, 49 and 43 shares		(5,323	)		(5,066	)		(4,765	)		(4,304	)		(3,791	)

Total shareholders’ equity		45,754			45,699			45,707			45,558			45,130
Noncontrolling interests		149			1,155			1,138			1,141			1,198

Total equity		45,903			46,854			46,845			46,699			46,328

Total liabilities and equity	$	370,944		$	366,380		$	369,348		$	361,335		$	360,985

(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $27.5 billion, $25.1 billion, $26.6 billion, $26.3 billion and $29.0 billion as of March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, respectively.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2016 Form 10-K included, and our first quarter 2017 Form 10-Q will include, additional information regarding these items.

(c)	Amounts include our equity interest in BlackRock.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Table 3: Average Consolidated Balance Sheet (Unaudited) (a)


	Three months ended
In millions	March 31 2017		December 31 2016		September 30 2016		June 30 2016		March 31 2016
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	26,385	$	26,374	$	25,825	$	24,856	$	24,696
Non-agency		3,127		3,303		3,490		3,728		3,936
Commercial mortgage-backed		5,919		6,283		6,276		6,335		6,586
Asset-backed		5,992		5,977		5,823		5,672		5,486
U.S. Treasury and government agencies		13,101		12,805		9,929		9,673		9,936
Other		5,293		5,237		5,166		5,004		4,847

Total securities available for sale		59,817		59,979		56,509		55,268		55,487
Securities held to maturity
Residential mortgage-backed		11,852		11,465		10,521		10,215		9,906
Commercial mortgage-backed		1,458		1,532		1,666		1,755		1,821
Asset-backed		556		585		702		708		715
U.S. Treasury and government agencies		529		444		264		262		259
Other		2,041		2,030		1,983		1,986		2,081

Total securities held to maturity		16,436		16,056		15,136		14,926		14,782

Total investment securities		76,253		76,035		71,645		70,194		70,269
Loans
Commercial		103,084		101,880		100,320		99,991		99,068
Commercial real estate		29,178		29,247		29,034		28,659		27,967
Equipment lease financing		7,497		7,398		7,463		7,570		7,420
Consumer		56,843		57,164		57,163		57,467		58,212
Residential real estate		15,651		15,193		14,870		14,643		14,517

Total loans		212,253		210,882		208,850		208,330		207,184
Interest-earning deposits with banks		24,192		25,245		28,063		26,463		25,533
Other interest-earning assets		8,395		7,983		8,174		7,449		7,764

Total interest-earning assets		321,093		320,145		316,732		312,436		310,750
Noninterest-earning assets		45,323		46,041		47,138		46,554		45,163

Total assets	$	366,416	$	366,186	$	363,870	$	358,990	$	355,913

Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	63,921	$	67,271	$	70,076	$	72,442	$	76,392
Demand		56,797		55,223		53,428		52,218		49,770
Savings		39,095		35,224		31,791		28,131		23,343
Time deposits		17,058		18,409		18,910		19,056		19,318

Total interest-bearing deposits		176,871		176,127		174,205		171,847		168,823
Borrowed funds
Federal Home Loan Bank borrowings		20,416		17,465		17,524		18,716		19,855
Bank notes and senior debt		22,992		21,653		22,896		22,375		20,690
Subordinated debt		7,102		8,287		8,356		8,336		8,317
Other		4,432		4,127		4,205		4,206		4,764

Total borrowed funds		54,942		51,532		52,981		53,633		53,626

Total interest-bearing liabilities		231,813		227,659		227,186		225,480		222,449
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		78,050		80,925		78,303		75,775		77,306
Accrued expenses and other liabilities		10,081		10,828		11,855		11,390		10,255
Equity		46,472		46,774		46,526		46,345		45,903

Total liabilities and equity	$	366,416	$	366,186	$	363,870	$	358,990	$	355,913

(a)	Calculated using average daily balances.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Table 4: Details of Net Interest Margin (Unaudited) (a)


	Three months ended
	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency		2.57	%		2.30	%		2.39	%		2.46	%		2.57	%
Non-agency		5.59	%		5.18	%		5.06	%		4.79	%		4.45	%
Commercial mortgage-backed		2.35	%		2.25	%		2.47	%		2.94	%		2.79	%
Asset-backed		2.50	%		2.39	%		2.31	%		2.32	%		2.19	%
U.S. Treasury and government agencies		1.66	%		1.41	%		1.33	%		1.50	%		1.55	%
Other		2.93	%		2.97	%		2.99	%		3.02	%		2.99	%
Total securities available for sale		2.53	%		2.33	%		2.42	%		2.54	%		2.55	%
Securities held to maturity
Residential mortgage-backed		2.79	%		2.52	%		2.71	%		2.81	%		3.02	%
Commercial mortgage-backed		3.50	%		4.12	%		3.51	%		3.61	%		3.53	%
Asset-backed		2.21	%		2.29	%		1.99	%		1.91	%		1.84	%
U.S. Treasury and government agencies		3.07	%		3.25	%		3.81	%		3.79	%		3.80	%
Other		5.34	%		5.35	%		6.58	%		5.40	%		5.35	%
Total securities held to maturity		3.16	%		3.04	%		3.29	%		3.22	%		3.37	%
Total investment securities		2.67	%		2.48	%		2.60	%		2.68	%		2.72	%
Loans
Commercial		3.24	%		3.11	%		3.05	%		3.08	%		3.08	%
Commercial real estate		3.27	%		3.30	%		3.23	%		3.16	%		3.51	%
Equipment lease financing		3.34	%		3.33	%		4.06	%		3.44	%		3.40	%
Consumer		4.47	%		4.35	%		4.32	%		4.28	%		4.29	%
Residential real estate		4.55	%		4.64	%		4.60	%		4.84	%		4.74	%
Total loans		3.67	%		3.59	%		3.57	%		3.56	%		3.60	%
Interest-earning deposits with banks		.81	%		.56	%		.50	%		.51	%		.50	%
Other interest-earning assets		3.54	%		3.80	%		3.23	%		3.59	%		3.62	%
Total yield on interest-earning assets		3.22	%		3.09	%		3.07	%		3.10	%		3.15	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market		.23	%		.21	%		.19	%		.20	%		.22	%
Demand		.10	%		.08	%		.08	%		.08	%		.07	%
Savings		.42	%		.42	%		.40	%		.39	%		.39	%
Time deposits		.69	%		.66	%		.66	%		.66	%		.65	%
Total interest-bearing deposits		.28	%		.26	%		.25	%		.24	%		.25	%
Borrowed funds
Federal Home Loan Bank borrowings		1.09	%		1.01	%		.86	%		.80	%		.68	%
Bank notes and senior debt		1.85	%		1.55	%		1.50	%		1.62	%		1.66	%
Subordinated debt		3.49	%		3.05	%		3.06	%		3.26	%		3.29	%
Other		1.36	%		1.41	%		1.41	%		1.39	%		1.24	%
Total borrowed funds		1.74	%		1.60	%		1.53	%		1.57	%		1.51	%
Total rate on interest-bearing liabilities		.62	%		.56	%		.54	%		.56	%		.55	%

Interest rate spread		2.60	%		2.53	%		2.53	%		2.54	%		2.60	%
Impact of noninterest-bearing sources (b)		.17			.16			.15			.16			.15

Net interest margin		2.77	%		2.69	%		2.68	%		2.70	%		2.75	%

(a)

Calculated as annualized taxable-equivalent net interest income divided by average earning assets. To provide more meaningful comparisons of net interest yields for all earning assets, interest income includes the effects of taxable-equivalent adjustments using a statutory federal income tax rate of 35% to increase tax-exempt interest income to a taxable-equivalent basis. 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 March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, were $52 million, $50 million, $49 million, $48 million and $48 million, respectively.

(b)	Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Table 5: Per Share Related Information (Unaudited)


	Three months ended
In millions, except per share data	March 31 2017		December 31 2016		September 30 2016		June 30 2016		March 31 2016
Basic
Net income	$	1,074	$	1,047	$	1,006	$	989	$	943
Less:
Net income (loss) attributable to noncontrolling interests		17		22		18		23		19
Preferred stock dividends		63		42		63		42		63
Preferred stock discount accretion and redemptions		21		1		1		1		2

Net income attributable to common shareholders		973		982		924		923		859
Less:
Dividends and undistributed earnings allocated to nonvested restricted shares		6		7		7		6		6

Net income attributable to basic common shares	$	967	$	975	$	917	$	917	$	853
Basic weighted-average common shares outstanding		487		487		490		497		501
Basic earnings per common share	$	1.99	$	2.01	$	1.87	$	1.84	$	1.70
Diluted
Net income attributable to basic common shares	$	967	$	975	$	917	$	917	$	853
Less: Impact of BlackRock earnings per share dilution		4		2		4		3		3

Net income attributable to diluted common shares	$	963	$	973	$	913	$	914	$	850
Basic weighted-average common shares outstanding		487		487		490		497		501
Dilutive potential common shares		5		7		6		6		6

Diluted weighted-average common shares outstanding		492		494		496		503		507
Diluted earnings per common share	$	1.96	$	1.97	$	1.84	$	1.82	$	1.68

(a)	Dividends are payable quarterly other than the Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

Table 6: Details of Loans (Unaudited)


In millions	March 31 2017		December 31 2016		September 30 2016		June 30 2016		March 31 2016
Commercial lending
Commercial
Manufacturing	$	20,054	$	18,891	$	19,813	$	19,665	$	20,104
Retail/wholesale trade		17,446		16,752		17,211		16,786		16,736
Service providers		14,185		14,707		14,159		14,258		14,141
Real estate related (a)		11,690		11,920		12,045		11,965		12,153
Health care		9,603		9,491		9,148		9,092		9,106
Financial services		7,710		7,241		7,203		7,400		6,084
Other industries		23,077		22,362		21,933		21,396		20,992

Total commercial		103,765		101,364		101,512		100,562		99,316

Commercial real estate		29,435		29,010		29,273		28,840		28,230
Equipment lease financing		7,462		7,581		7,378		7,620		7,584

Total commercial lending		140,662		137,955		138,163		137,022		135,130

Consumer lending
Home equity		29,577		29,949		30,432		30,883		31,458
Residential real estate		15,781		15,598		15,141		14,799		14,672
Credit card		5,112		5,282		5,029		4,896		4,746
Other consumer
Automobile		12,337		12,380		11,898		11,449		11,177
Education		4,974		5,159		5,337		5,482		5,701
Other		4,383		4,510		4,446		4,525		4,601

Total consumer lending		72,164		72,878		72,283		72,034		72,355

Total loans	$	212,826	$	210,833	$	210,446	$	209,056	$	207,485

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Allowances for Loan and Lease Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses


Three months ended - in millions	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Beginning balance	$	2,589		$	2,619		$	2,685		$	2,711		$	2,727
Gross charge-offs:
Commercial		(53	)		(61	)		(107	)		(86	)		(78	)
Commercial real estate		(1	)		(4	)		(2	)		(10	)		(10	)
Equipment lease financing		(1	)		(1	)		(1	)		(2	)		(1	)
Home equity		(34	)		(28	)		(39	)		(28	)		(48	)
Residential real estate		(4	)		(3	)		(3	)					(8	)
Credit card		(46	)		(39	)		(39	)		(41	)		(42	)
Other consumer		(59	)		(58	)		(52	)		(46	)		(49	)

Total gross charge-offs		(198	)		(194	)		(243	)		(213	)		(236	)
Recoveries:
Commercial		24			30			26			28			33
Commercial real estate		7			14			12			13			12
Equipment lease financing		1			1			7			1			1
Home equity		20			21			25			17			21
Residential real estate		4			2			2			2			3
Credit card		5			5			5			5			4
Other consumer		19			15			12			13			13

Total recoveries		80			88			89			79			87
Net (charge-offs) / recoveries:
Commercial		(29	)		(31	)		(81	)		(58	)		(45	)
Commercial real estate		6			10			10			3			2
Equipment lease financing								6			(1	)
Home equity		(14	)		(7	)		(14	)		(11	)		(27	)
Residential real estate					(1	)		(1	)		2			(5	)
Credit card		(41	)		(34	)		(34	)		(36	)		(38	)
Other consumer		(40	)		(43	)		(40	)		(33	)		(36	)

Total net charge-offs		(118	)		(106	)		(154	)		(134	)		(149	)
Provision for credit losses		88			67			87			127			152
Other		6						8			2			2
Net change in allowance for unfunded loan commitments and letters of credit		(4	)		9			(7	)		(21	)		(21	)

Ending balance	$	2,561		$	2,589		$	2,619		$	2,685		$	2,711

Supplemental Information
Net charge-offs to average loans (for the three months ended)
(annualized)		.23	%		.20	%		.29	%		.26	%		.29	%
Allowance for loan and lease losses to total loans		1.20			1.23			1.24			1.28			1.31
Commercial lending net charge-offs	$	(23	)	$	(21	)	$	(65	)	$	(56	)	$	(43	)
Consumer lending net charge-offs		(95	)		(85	)		(89	)		(78	)		(106	)

Total net charge-offs	$	(118	)	$	(106	)	$	(154	)	$	(134	)	$	(149	)
Net charge-offs to average loans
Commercial lending		.07	%		.06	%		.19	%		.17	%		.13	%
Consumer lending		.53	%		.47	%		.49	%		.44	%		.59	%


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type


In millions	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade	$	106		$	87		$	59		$	80		$	50
Manufacturing		41			31			43			69			83
Service providers		44			40			43			69			76
Real estate related (a)		28			47			68			73			36
Financial services					1			1			1			1
Health care		23			30			22			26			32
Other industries		158			260			285			288			274

Total commercial		400			496			521			606			552

Commercial real estate		137			143			152			143			160
Equipment lease financing		12			16			18			19			20

Total commercial lending		549			655			691			768			732

Consumer lending (b)
Home equity		900			914			895			926			957
Residential real estate		473			501			502			513			536
Credit card		4			4			4			4			4
Other consumer
Automobile		61			55			41			38			37
Education and other		11			15			13			15			15

Total consumer lending		1,449			1,489			1,455			1,496			1,549

Total nonperforming loans (c)(d)		1,998			2,144			2,146			2,264			2,281

OREO and foreclosed assets		214			230			229			251			271

Total nonperforming assets	$	2,212		$	2,374		$	2,375		$	2,515		$	2,552

Nonperforming loans to total loans		.94	%		1.02	%		1.02	%		1.08	%		1.10	%
Nonperforming assets to total loans, OREO and foreclosed assets		1.04	%		1.12	%		1.13	%		1.20	%		1.23	%
Nonperforming assets to total assets		.60	%		.65	%		.64	%		.70	%		.71	%
Allowance for loan and lease losses to nonperforming loans		128	%		121	%		122	%		119	%		119	%

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

(b)	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.

(c)	Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under the fair value option and purchased impaired loans.

(d)

The recorded investment of loans collateralized by residential real estate property that are in process of foreclosure was $.4 billion, $.4 billion, $.4 billion, $.4 billion and $.5 billion at March 31, 2017, December 31, 2016, September 30, 2016, June 30, 2016 and March 31, 2016, which included $.2 billion of loans that are government insured/guaranteed at March 31, 2017 and December 31, 2016 and $.3 billion for all remaining periods presented.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Nonperforming Assets (Unaudited) (Continued)

Table 9: Change in Nonperforming Assets


In millions	January 1, 2017 - March 31, 2017			October 1, 2016 - December 31, 2016			July 1, 2016 - September 30, 2016			April 1, 2016 - June 30, 2016			January 1, 2016 - March 31, 2016
Beginning balance	$	2,374		$	2,375		$	2,515		$	2,552		$	2,425
New nonperforming assets		330			518			370			405			542
Charge-offs and valuation adjustments		(150	)		(132	)		(153	)		(158	)		(161	)
Principal activity, including paydowns and payoffs		(228	)		(279	)		(171	)		(149	)		(98	)
Asset sales and transfers to loans held for sale		(42	)		(57	)		(113	)		(76	)		(90	)
Returned to performing status		(72	)		(51	)		(73	)		(59	)		(66	)

Ending balance	$	2,212		$	2,374		$	2,375		$	2,515		$	2,552

Table 10: Largest Individual Nonperforming Assets at March 31, 2017 (a)


In millions
Ranking	Outstandings		Industry
1		$51	Wholesale Trade
2		45	Mining, Quarrying, Oil and Gas Extraction
3		26	Mining, Quarrying, Oil and Gas Extraction
4		23	Mining, Quarrying, Oil and Gas Extraction
5		20	Transportation and Warehousing
6		19	Mining, Quarrying, Oil and Gas Extraction
7		13	Real Estate, Rental and Leasing
8		12	Real Estate, Rental and Leasing
9		12	Manufacturing
10		11	Construction

Total		$232

As a percent of total nonperforming assets 10%

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

Accruing Loans Past Due (Unaudited)

Table 11: Accruing Loans Past Due 30 to 59 Days (a)


	Amount										Percent of Total Outstandings
Dollars in millions	Mar. 31 2017		Dec. 31 2016		Sept. 30 2016		Jun. 30 2016		Mar. 31 2016		Mar. 31 2017			Dec. 31 2016			Sept. 30 2016			Jun. 30 2016			Mar. 31 2016
Commercial	$	62	$	81	$	64	$	61	$	85		.06	%		.08	%		.06	%		.06	%		.09	%
Commercial real estate		15		5		26		5		6		.05	%		.02	%		.09	%		.02	%		.02	%
Equipment lease financing		19		29		1		1		21		.25	%		.38	%		.01	%		.01	%		.28	%
Home equity		57		64		55		63		57		.19	%		.21	%		.18	%		.20	%		.18	%
Residential real estate
Non government insured		62		103		60		71		77		.39	%		.66	%		.40	%		.48	%		.52	%
Government insured		60		56		50		57		62		.38	%		.36	%		.33	%		.39	%		.42	%
Credit card		32		33		28		25		25		.63	%		.62	%		.56	%		.51	%		.53	%
Other consumer
Automobile		35		51		38		38		33		.28	%		.41	%		.32	%		.33	%		.30	%
Education and other
Non government insured		22		37		28		33		24		.24	%		.38	%		.29	%		.33	%		.23	%
Government insured		94		103		104		110		116		1.00	%		1.07	%		1.06	%		1.10	%		1.13	%

Total	$	458	$	562	$	454	$	464	$	506		.22	%		.27	%		.22	%		.22	%		.24	%

Table 12: Accruing Loans Past Due 60 to 89 Days (a)


	Amount										Percent of Total Outstandings
Dollars in millions	Mar. 31 2017		Dec. 31 2016		Sept. 30 2016		Jun. 30 2016		Mar. 31 2016		Mar. 31 2017			Dec. 31 2016			Sept. 30 2016			Jun. 30 2016			Mar. 31 2016
Commercial	$	29	$	20	$	24	$	34	$	18		.03	%		.02	%		.02	%		.03	%		.02	%
Commercial real estate		6		2		1		11		1		.02	%		.01	%		.00	%		.04	%		.00	%
Equipment lease financing				1		2		4							.01	%		.03	%		.05	%
Home equity		23		30		27		27		27		.08	%		.10	%		.09	%		.09	%		.09	%
Residential real estate
Non government insured		23		18		20		18		17		.15	%		.12	%		.13	%		.12	%		.12	%
Government insured		54		50		51		47		44		.34	%		.32	%		.34	%		.32	%		.30	%
Credit card		21		21		19		17		17		.41	%		.40	%		.38	%		.35	%		.36	%
Other consumer
Automobile		10		12		11		10		8		.08	%		.10	%		.09	%		.09	%		.07	%
Education and other
Non government insured		11		12		13		11		13		.12	%		.12	%		.13	%		.11	%		.13	%
Government insured		50		66		68		64		64		.53	%		.68	%		.70	%		.64	%		.62	%

Total	$	227	$	232	$	236	$	243	$	209		.11	%		.11	%		.11	%		.12	%		.10	%

Table 13: Accruing Loans Past Due 90 Days or More (a)


	Amount										Percent of Total Outstandings
Dollars in millions	Mar. 31 2017		Dec. 31 2016		Sept. 30 2016		Jun. 30 2016		Mar. 31 2016		Mar. 31 2017			Dec. 31 2016			Sept. 30 2016			Jun. 30 2016			Mar. 31 2016
Commercial	$	40	$	39	$	37	$	38	$	39		.04	%		.04	%		.04	%		.04	%		.04	%
Residential real estate
Non government insured		10		24		18		23		23		.06	%		.15	%		.12	%		.16	%		.16	%
Government insured		422		476		478		466		483		2.67	%		3.05	%		3.16	%		3.15	%		3.29	%
Credit card		37		37		31		30		32		.72	%		.70	%		.62	%		.61	%		.67	%
Other consumer
Automobile		5		5		4		3		3		.04	%		.04	%		.03	%		.03	%		.03	%
Education and other
Non government insured		9		10		9		10		9		.10	%		.10	%		.09	%		.10	%		.09	%
Government insured		176		191		189		184		193		1.88	%		1.98	%		1.93	%		1.84	%		1.87	%

Total	$	699	$	782	$	766	$	754	$	782		.33	%		.37	%		.36	%		.36	%		.38	%

(a)	Excludes loans held for sale and purchased impaired loans.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, investment management and cash management products and services to consumer and small business customers within our primary geographic markets. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Georgia, Alabama, Missouri, Wisconsin and South Carolina. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to government agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Our mortgage servicing operation performs all functions related to servicing residential mortgage loans for investors and for loans we own. Brokerage, investment management and cash management products and services include managed accounts, education accounts, retirement accounts and trust and estate services.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, government and not-for-profit entities. 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, securities, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are generally provided 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 investment and retirement planning, customized investment management, private banking, tailored credit solutions, and trust management and administration for individuals and their families. Our Hawthorn unit provides multi-generational family planning including wealth strategy, investment management, private banking, tax and estate planning guidance, performance reporting and personal administration services to ultra high net worth families. Institutional asset management provides advisory, custody administration and retirement administration services. The business also offers PNC proprietary mutual funds and investment strategies. Institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments, primarily located in our geographic footprint.

BlackRock, in which we hold an equity investment, is a leading publicly traded investment management firm providing a broad range of investment and risk management services to institutional and retail clients worldwide. Using a diverse platform of active and index investment strategies across asset classes, BlackRock develops investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. BlackRock also offers an investment and risk management technology platform, risk analytics and advisory services and solutions to a broad base of institutional investors. Our equity investment in BlackRock provides us with an additional source of noninterest income and increases our overall revenue diversification. BlackRock is a publicly traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At March 31, 2017, our economic interest in BlackRock was 22%.

Table 14: Period End Employees (a)


	March 31 2017		December 31 2016		September 30 2016		June 30 2016		March 31 2016
Full-time employees
Retail Banking		27,698		27,595		27,563		27,605		27,895
Other full-time employees		21,973		21,765		21,688		21,409		21,339

Total full-time employees		49,671		49,360		49,251		49,014		49,234

Part-time employees
Retail Banking		2,385		2,352		2,452		2,710		2,784
Other part-time employees		299		294		340		666		362

Total part-time employees		2,684		2,646		2,792		3,376		3,146

Total		52,355		52,006		52,043		52,390		52,380

(a)

Effective for the first quarter of 2017, as a result of changes to how we manage our businesses, we realigned our segments and, accordingly, have changed the basis of presentation of our segments, resulting in four reportable business segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group and BlackRock. All prior periods presented were revised to conform to the new segment alignment.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Table 15: Summary of Business Segment Income and Revenue (Unaudited) (a) (b)


	Three months ended
In millions	March 31 2017		December 31 2016		September 30 2016		June 30 2016		March 31 2016
Income
Retail Banking	$	213	$	228	$	224	$	328	$	243
Corporate & Institutional Banking		484		545		509		457		398
Asset Management Group		47		55		58		48		49
Other, including BlackRock (c)		330		219		215		156		253

Net income	$	1,074	$	1,047	$	1,006	$	989	$	943

Revenue

Retail Banking	$	1,724	$	1,775	$	1,816	$	1,858	$	1,755
Corporate & Institutional Banking		1,363		1,393		1,352		1,344		1,258
Asset Management Group		289		288		294		289		280
Other, including BlackRock (c)		508		418		367		303		372

Total revenue	$	3,884	$	3,874	$	3,829	$	3,794	$	3,665

(a)

Effective for the first quarter of 2017, as a result of changes to how we manage our businesses, we realigned our segments and, accordingly, have changed the basis of presentation of our segments, resulting in four reportable business segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group and BlackRock. For purposes of this presentation, we have combined BlackRock with Other. All prior periods presented were revised to conform to the new segment alignment.

(b)

Our business information is presented based on our internal management reporting practices. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors. We periodically refine our internal methodologies as management reporting practices are enhanced. In the first quarter of 2017, we made certain adjustments to our internal funds transfer pricing methodology primarily relating to weighted average lives of certain non-maturity deposits. These changes in methodology affected business segment results, primarily adversely impacting net interest income for Corporate & Institutional Banking and Retail Banking, offset by increased net interest income in Other. All prior periods presented were revised to reflect our change in internal funds transfer pricing methodology.

(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. We provide additional information on these activities in our Form 10-K and Form 10-Q filings with the SEC.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Table 16: Retail Banking (Unaudited) (a)


	Three months ended
Dollars in millions	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Income Statement
Net interest income	$	1,121		$	1,120		$	1,136		$	1,133		$	1,122
Noninterest income		603			655			680			725			633

Total revenue		1,724			1,775			1,816			1,858			1,755
Provision for credit losses		71			87			102			36			72
Noninterest expense		1,315			1,328			1,359			1,305			1,299

Pretax earnings		338			360			355			517			384
Income taxes		125			132			131			189			141

Earnings	$	213		$	228		$	224		$	328		$	243

Average Balance Sheet
Loans held for sale	$	843		$	1,060		$	1,050		$	855		$	801
Loans
Consumer
Home equity	$	25,601		$	25,768		$	26,005		$	26,308		$	26,743
Automobile		12,146			11,868			11,353			10,978			10,787
Education		5,131			5,289			5,454			5,642			5,865
Credit cards		5,121			5,099			4,943			4,788			4,722
Other		1,756			1,762			1,781			1,792			1,823

Total consumer		49,755			49,786			49,536			49,508			49,940
Commercial and commercial real estate		11,006			11,082			11,201			11,562			11,801
Residential mortgage		11,688			11,169			10,798			10,486			10,268

Total loans	$	72,449		$	72,037		$	71,535		$	71,556		$	72,009
Total assets	$	87,109		$	86,133		$	85,789		$	85,348		$	86,213

Deposits
Noninterest-bearing demand	$	29,010		$	29,422		$	28,871		$	28,165		$	26,980
Interest-bearing demand		40,649			39,170			38,494			38,850			37,815
Money market		39,321			41,009			43,155			45,983			49,336
Savings		35,326			32,111			29,268			26,128			21,780
Certificates of deposit		13,735			14,150			14,601			15,018			15,320

Total deposits	$	158,041		$	155,862		$	154,389		$	154,144		$	151,231

Performance Ratios
Return on average assets		.99	%		1.05	%		1.04	%		1.54	%		1.14	%
Noninterest income to total revenue		35	%		37	%		37	%		39	%		36	%
Efficiency		76	%		75	%		75	%		70	%		74	%

(a)	See note (a) on page 11.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Retail Banking (Unaudited) (Continued)


	Three months ended
Dollars in millions, except as noted	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Supplemental Noninterest Income Information
Consumer services	$	250		$	269		$	267		$	271		$	254
Brokerage	$	76		$	73		$	73		$	74		$	75
Residential mortgage	$	113		$	142		$	160		$	165		$	100
Service charges on deposits	$	154		$	165		$	168		$	155		$	151

Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	130		$	125		$	126		$	126		$	125
Serviced portfolio acquisitions	$	8		$	3		$	5		$	6		$	5
MSR asset value (b)	$	1.3		$	1.2		$	.8		$	.8		$	.9
MSR capitalization value (in basis points) (b)		97			94			65			61			69
Servicing income: (in millions)
Servicing fees, net (c)	$	52		$	42		$	45		$	50		$	55
Mortgage servicing rights valuation, net of economic hedge	$	12		$	35		$	30		$	35		$	(8	)
Residential mortgage loan statistics
Loan origination volume (in billions)	$	1.9		$	3.0		$	3.1		$	2.6		$	1.9
Loan sale margin percentage		2.96	%		2.79	%		3.33	%		3.42	%		3.21	%
Percentage of originations represented by:
Purchase volume (d)		43	%		33	%		41	%		48	%		40	%
Refinance volume		57	%		67	%		59	%		52	%		60	%

Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)		52	%		51	%		50	%		48	%		47	%
Digital consumer customers (f)		61	%		60	%		59	%		57	%		56	%
Credit-related statistics
Nonperforming assets	$	1,209		$	1,257		$	1,220		$	1,255		$	1,298
Net charge-offs	$	100		$	90		$	89		$	74		$	97
Other statistics
ATMs		8,976			9,024			9,045			8,993			8,940
Branches (g)		2,508			2,520			2,600			2,601			2,613
Universal branches (h)		527			526			475			467			362
Brokerage account client assets (in billions) (i)	$	46		$	44		$	44		$	44		$	43

(a)	Represents mortgage loan servicing balances for third parties and the related income.

(b)	Presented as of period end, except for customer-related statistics which are quarterly averages, and net charge-offs, which are for the three months ended.

(c)	Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan prepayments and loans that were paid down or paid off during the period.

(d)	Mortgages with borrowers as part of residential real estate purchase transactions.

(e)	Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.

(f)	Represents consumer checking relationships that process the majority of their transactions through non-teller channels.

(g)	Excludes stand-alone mortgage offices and satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.

(h)	Included in total branches, represents branches operating under our Universal model.

(i)	Includes cash and money market balances.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

Table 17: Corporate & Institutional Banking (Unaudited) (a)


	Three months ended
Dollars in millions	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Income Statement
Net interest income	$	839		$	864		$	826		$	805		$	817
Noninterest income		524			529			526			539			441

Total revenue		1,363			1,393			1,352			1,344			1,258
Provision for credit losses (benefit)		25			(3	)		8			70			102
Noninterest expense		584			567			565			557			533

Pretax earnings		754			829			779			717			623
Income taxes		270			284			270			260			225

Earnings	$	484		$	545		$	509		$	457		$	398

Average Balance Sheet
Loans held for sale	$	1,116		$	965		$	994		$	801		$	708
Loans
Commercial	$	92,116		$	90,816		$	89,146		$	88,426		$	87,324
Commercial real estate		27,091			27,124			26,990			26,630			25,959
Equipment lease financing		7,497			7,398			7,463			7,570			7,420

Total commercial lending		126,704			125,338			123,599			122,626			120,703
Consumer		331			352			399			445			503

Total loans	$	127,035		$	125,690		$	123,998		$	123,071		$	121,206
Total assets	$	142,592		$	142,325		$	141,550		$	140,056		$	137,270

Deposits
Noninterest-bearing demand	$	47,423		$	49,772		$	47,801		$	45,984		$	48,715
Money market		21,086			22,569			23,068			22,230			22,298
Interest-bearing demand and other		15,391			16,190			15,116			13,036			11,391

Total deposits	$	83,900		$	88,531		$	85,985		$	81,250		$	82,404

Performance Ratios
Return on average assets		1.38	%		1.52	%		1.43	%		1.31	%		1.18	%
Noninterest income to total revenue		38	%		38	%		39	%		40	%		35	%
Efficiency		43	%		41	%		42	%		41	%		42	%

Other Information
Commercial loan servicing portfolio (in billions) (b) (c)	$	490		$	487		$	461		$	459		$	453
Consolidated revenue from: (d)
Treasury Management (e)	$	359		$	358		$	347		$	328		$	315
Capital Markets (e)	$	247		$	208		$	213		$	235		$	152
Commercial mortgage banking activities
Commercial mortgage loans held for sale (f)	$	13		$	50		$	27		$	24		$	26
Commercial mortgage loan servicing income (g)		58			62			62			62			62
Commercial mortgage servicing rights valuation, net of economic hedge (h)		16			22			1			20			1

Total	$	87		$	134		$	90		$	106		$	89
Average Loans (by C&IB business)
Corporate Banking	$	53,839		$	52,920		$	51,904		$	51,189		$	49,533
Real Estate		37,136			37,262			36,721			36,193			35,784
Business Credit		14,839			14,741			14,772			14,865			14,672
Equipment Finance		12,478			12,096			11,771			11,784			11,652
Commercial Banking		7,041			6,914			7,074			7,269			7,384
Other		1,702			1,757			1,756			1,771			2,181

Total average loans	$	127,035		$	125,690		$	123,998		$	123,071		$	121,206
Net carrying amount of commercial mortgage servicing rights (c)	$	606		$	576		$	473		$	448		$	460
Credit-related statistics:
Nonperforming assets (c)	$	546		$	691		$	712		$	802		$	760
Net charge-offs	$	21		$	17		$	65		$	60		$	38

(a)	See note (a) on page 11.

(b)	Represents loans serviced for PNC and others.

(c)	Presented as of period end.

(d)	Represents consolidated PNC amounts.

(e)	Includes amounts reported in net interest income, corporate service fees and other noninterest income.

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

(g)

Includes net interest income and noninterest income, primarily in corporate services fees, from loan servicing and ancillary services, net of changes in fair value on commercial mortgage servicing rights due to time and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(h)	Includes amounts reported in corporate service fees.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

Table 18: Asset Management Group (Unaudited) (a)


	Three months ended
Dollars in millions, except as noted	March 31 2017			December 31 2016			September 30 2016			June 30 2016			March 31 2016
Income Statement
Net interest income	$	71		$	73		$	74		$	76		$	77
Noninterest income		218			215			220			213			203

Total revenue		289			288			294			289			280
Provision for credit losses (benefit)		(2	)		(6	)		(3	)		6			(3	)
Noninterest expense		217			207			206			206			206

Pretax earnings		74			87			91			77			77
Income taxes		27			32			33			29			28

Earnings	$	47		$	55		$	58		$	48		$	49

Average Balance Sheet
Loans
Consumer	$	5,113		$	5,266		$	5,350		$	5,501		$	5,630
Commercial and commercial real estate		728			738			721			769			788
Residential mortgage		1,190			1,137			1,069			1,023			1,003

Total loans	$	7,031		$	7,141		$	7,140		$	7,293		$	7,421
Total assets	$	7,476		$	7,597		$	7,588		$	7,756		$	7,887

Deposits
Noninterest-bearing demand	$	1,433		$	1,497		$	1,426		$	1,393		$	1,407
Interest-bearing demand		3,829			3,844			3,845			4,085			4,280
Money market		3,500			3,682			3,850			4,229			4,758
Savings		3,768			3,113			2,524			2,002			1,563
Other		246			272			275			279			275

Total deposits	$	12,776		$	12,408		$	11,920		$	11,988		$	12,283

Performance Ratios
Return on average assets		2.55	%		2.87	%		3.03	%		2.48	%		2.52	%
Noninterest income to total revenue		75	%		75	%		75	%		74	%		73	%
Efficiency		75	%		72	%		70	%		71	%		74	%

Other Information
Nonperforming assets (b)	$	51		$	53		$	51		$	48		$	54
Net charge-offs	$	1		$	2		$	1		$	2		$	4

Client Assets Under Administration (in billions) (b) (c) (d)
Discretionary client assets under management	$	141		$	137		$	138		$	135		$	135
Nondiscretionary client assets under administration		123			120			119			117			118

Total	$	264		$	257		$	257		$	252		$	253

Discretionary client assets under management
Personal	$	87		$	85		$	85		$	84		$	84
Institutional		54			52			53			51			51

Total	$	141		$	137		$	138		$	135		$	135

Equity	$	71		$	68		$	67		$	66		$	66
Fixed income		50			49			49			47			45
Liquidity/Other		20			20			22			22			24

Total	$	141		$	137		$	138		$	135		$	135

(a)	See note (a) on page 11.

(b)	As of period end.

(c)	Excludes brokerage account client assets.

(d)

Effective for the first quarter of 2017, we have adjusted nondiscretionary client assets under administration for prior periods to remove assets which, as a result of certain investment advisory services performed by one of our registered investment advisors, were previously reported as both discretionary client assets under management and nondiscretionary client assets under administration. Effective for the first quarter of 2017, these amounts are only reported as discretionary assets under management. Prior periods were adjusted to remove approximately $9 billion, $9 billion, $9 billion and $7 billion as of December 31, 2016, September 30, 2016, June 30, 2016, and March 31, 2016 previously included in nondiscretionary assets under administration. In addition, effective for the first quarter of 2017, we have refined our methodologies for allocating discretionary client assets under management by asset type. As a result, we have updated the presentation of discretionary client assets under management by asset type for prior periods presented.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Glossary of Terms

Adjusted average total assets - Primarily consisted 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).

Basel III common equity Tier 1 capital - Common stock plus related surplus, net of treasury stock, plus retained earnings, plus accumulated other comprehensive income for securities currently and previously held as available for sale, plus accumulated other comprehensive income for pension and other postretirement benefit plans, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments.

Basel III common equity Tier 1 capital ratio - Common equity Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Tier 1 capital - Common equity Tier 1 capital, plus preferred stock, plus certain trust preferred capital securities, plus certain noncontrolling interests that are held by others and plus/less other adjustments.

Basel III Tier 1 capital ratio - Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Total capital - Tier 1 capital plus qualifying subordinated debt, plus certain trust preferred securities, plus, under the Basel III transitional rules and the standardized approach, the allowance for loan and lease losses included in Tier 2 capital and other.

Basel III Total capital ratio - Total capital divided by period-end risk-weighted assets (as applicable).

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.

Combined loan-to-value ratio (CLTV) - This is the aggregate principal balance(s) of the mortgages on a property divided by its appraised value or purchase price.

Common shareholders’ equity - Total shareholders’ equity less the liquidation value of preferred stock.

Credit valuation adjustment (CVA) - Represents an adjustment to the fair value of our derivatives for our own and counterparties’ non-performance risk.

Criticized commercial loans - Loans with potential or identified weaknesses based upon internal risk ratings that comply with the regulatory classification definitions of “Special Mention,” “Substandard” or “Doubtful.”

Discretionary client 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.

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 increases by 1.5% for each 100 basis point increase in interest rates.

Earning assets - Assets that generate income, which include: interest-earning deposits with banks; loans held for sale; loans; investment securities; and certain other assets.

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 17

Fee income - When referring to the components of Noninterest income, we use the term fee income to refer to the following categories within Noninterest income: Asset management; Consumer services; Corporate services; Residential mortgage; and Service charges on deposits.

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.

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.

Impaired loans - Loans are determined to be impaired when, based on current information and events, it is probable that all contractually required payments will not be collected. Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status. Excluded from impaired loans are nonperforming leases, loans held for sale, loans accounted for under the fair value option, smaller balance homogenous type loans and purchased impaired loans.

Leverage ratio - Tier 1 capital divided by average quarterly adjusted 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. Our product set includes loans priced using LIBOR as a benchmark.

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, a LTV of less than 90% is better secured and has less credit risk than a LTV of greater than or equal to 90%.

Loss given default (LGD) - An estimate of loss, net of recovery based on collateral type, collateral value, loan exposure, and other factors. 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 any means, including but not limited to the liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.

Nonaccrual loans - Loans for which we do not accrue interest income. Nonaccrual loans include nonperforming loans, in addition to loans accounted for under the fair value option and loans accounted for as held for sale for which full collection of contractual principal and/or interest is not probable.

Nondiscretionary client assets under administration - Assets we hold for our customers/clients in a nondiscretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Nonperforming assets - Nonperforming assets include nonperforming loans and OREO, foreclosed and other assets, but exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale, loans accounted for under the fair value option and purchased impaired loans. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans - Loans accounted for at amortized cost for which we do not accrue interest income. Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, home equity, residential real estate, credit card and other consumer customers as well as TDRs which have not returned to performing status. Nonperforming loans exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale, loans accounted for under the fair value option and purchased impaired loans. Nonperforming loans exclude 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.

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).


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Options - Contracts that grant the purchaser, for a premium payment, the right, but not the obligation, to either purchase or sell the associated financial instrument at a set price during a specified period or at a specified date in the future.

Other real estate owned (OREO), foreclosed and other assets - Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed and other assets include real and personal property, equity interests in corporations, partnerships, and limited liability companies. Excludes certain assets that have a government-guarantee which are classified as other receivables.

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

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.

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.

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 income - 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.

Transitional Basel III common equity - Common equity calculated under Basel III using phased in definitions and deductions applicable to us during the related presentation period.

Troubled debt restructuring (TDR) - A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

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.