Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2017

(Unaudited)

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THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2017

(UNAUDITED)

Consolidated Results:	Page
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 Loan and Lease 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 October 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, including residential mortgage, 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.

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THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Third 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 September 30, 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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Table 1: Consolidated Income Statement (Unaudited)

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions, except per share data	2017				2017				2017				2016				2016					2017				2016
Interest Income
Loans	$	2,140			$	2,040			$	1,904			$	1,886			$	1,856				$	6,084			$	5,528
Investment securities	501				495				493				457				451					1,489				1,369
Other	154				139				123				110				101					416				302
Total interest income	2,795				2,674				2,520				2,453				2,408					7,989				7,199
Interest Expense
Deposits	170				143				120				114				107					433				316
Borrowed funds	280				273				240				209				206					793				622
Total interest expense	450				416				360				323				313					1,226				938
Net interest income	2,345				2,258				2,160				2,130				2,095					6,763				6,261
Noninterest Income
Asset management	421				398				403				399				404					1,222				1,122
Consumer services	357				360				332				349				348					1,049				1,039
Corporate services	371				434				393				387				389					1,198				1,117
Residential mortgage	104				104				113				142				160					321				425
Service charges on deposits	181				170				161				172				174					512				495
Other (a)	346				336				322				295				259					1,004				829
Total noninterest income	1,780				1,802				1,724				1,744				1,734					5,306				5,027
Total revenue	4,125				4,060				3,884				3,874				3,829					12,069				11,288
Provision For Credit Losses	130				98				88				67				87					316				366
Noninterest Expense
Personnel	1,274				1,263				1,249				1,231				1,239					3,786				3,610
Occupancy	204				202				222				210				215					628				651
Equipment	259				281				251				254				246					791				720
Marketing	62				67				55				60				72					184				187
Other	657				666				625				686				622					1,948				1,867
Total noninterest expense	2,456				2,479				2,402				2,441				2,394					7,337				7,035
Income before income taxes and noncontrolling interests	1,539				1,483				1,394				1,366				1,348					4,416				3,887
Income taxes	413				386				320				319				342					1,119				949
Net income	1,126				1,097				1,074				1,047				1,006					3,297				2,938
Less: Net income attributable to noncontrolling interests	12				10				17				22				18					39				60
Preferred stock dividends (b)	63				55				63				42				63					181				168
Preferred stock discount accretion and redemptions	1				2				21				1				1					24				4
Net income attributable to common shareholders	$	1,050			$	1,030			$	973			$	982			$	924				$	3,053			$	2,706
Earnings Per Common Share
Basic	$	2.18			$	2.12			$	1.99			$	2.01			$	1.87				$	6.29			$	5.41
Diluted	$	2.16			$	2.10			$	1.96			$	1.97			$	1.84				$	6.21			$	5.33
Average Common Shares Outstanding
Basic	479				484				487				487				490					483				496
Diluted	483				488				492				494				496					488				502
Efficiency	60		%		61		%		62		%		63		%		63		%			61		%		62		%
Noninterest income to total revenue	43		%		44		%		44		%		45		%		45		%			44		%		45		%
Effective tax rate (c)	26.8		%		26.0		%		23.0		%		23.4		%		25.4		%			25.3		%		24.4		%

 

(a)	Includes net gains (losses) on sales of securities of $(1) million, $13 million, $(2) million, $(4) million, and $7 million for the quarters ended September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016, respectively, and $10 million and $20 million for the nine months ended September 30, 2017 and September 30, 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.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

	September 30				June 30				March 31				December 31				September 30
In millions, except par value	2017				2017				2017				2016				2016
Assets
Cash and due from banks	$	4,736			$	5,039			$	5,003			$	4,879			$	4,531
Interest-earning deposits with banks (a)	24,713				22,482				27,877				25,711				27,058
Loans held for sale (b)	1,764				2,030				1,414				2,504				2,053
Investment securities – available for sale	57,254				58,878				59,339				60,104				61,941
Investment securities – held to maturity	17,740				17,553				17,093				15,843				16,573
Loans (b)	221,109				218,034				212,826				210,833				210,446
Allowance for loan and lease losses	(2,605		)		(2,561		)		(2,561		)		(2,589		)		(2,619		)
Net loans	218,504				215,473				210,265				208,244				207,827
Equity investments (c)	11,009				10,819				10,900				10,728				10,605
Mortgage servicing rights	1,854				1,867				1,867				1,758				1,293
Goodwill	9,163				9,163				9,103				9,103				9,103
Other (b)	28,454				28,886				28,083				27,506				28,364
Total assets	$	375,191			$	372,190			$	370,944			$	366,380			$	369,348
Liabilities
Deposits
Noninterest-bearing	$	79,967			$	79,550			$	79,246			$	80,230			$	82,159
Interest-bearing	180,768				179,626				181,464				176,934				177,736
Total deposits	260,735				259,176				260,710				257,164				259,895
Borrowed funds
Federal Home Loan Bank borrowings	20,538				19,039				19,549				17,549				17,050
Bank notes and senior debt	26,467				26,054				23,745				22,972				22,431
Subordinated debt	5,601				6,111				6,889				8,009				8,708
Other (b)	4,958				5,202				4,879				4,176				3,352
Total borrowed funds	57,564				56,406				55,062				52,706				51,541
Allowance for unfunded loan commitments and letters of credit	293				304				305				301				310
Accrued expenses and other liabilities	10,147				10,119				8,964				9,355				10,757
Total liabilities	328,739				326,005				325,041				319,526				322,503
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares	2,710				2,710				2,709				2,709				2,709
Capital surplus	16,343				16,326				16,275				16,651				16,159
Retained earnings	33,819				33,133				32,372				31,670				30,958
Accumulated other comprehensive income (loss)	(22		)		(98		)		(279		)		(265		)		646
Common stock held in treasury at cost: 66, 62, 57, 57 and 54 shares	(6,462		)		(5,987		)		(5,323		)		(5,066		)		(4,765		)
Total shareholders’ equity	46,388				46,084				45,754				45,699				45,707
Noncontrolling interests	64				101				149				1,155				1,138
Total equity	46,452				46,185				45,903				46,854				46,845
Total liabilities and equity	$	375,191			$	372,190			$	370,944			$	366,380			$	369,348

 

(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $24.3 billion, $22.1 billion, $27.5 billion, $25.1 billion and $26.6 billion as of September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016, respectively.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2017 Form 10-Q included, and our third 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.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Table 3: Average Consolidated Balance Sheet (Unaudited) (a)
	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions	2017				2017				2017				2016				2016					2017				2016
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	25,493			$	25,862			$	26,385			$	26,374			$	25,825				$	25,910			$	25,129
Non-agency	2,758				2,947				3,127				3,303				3,490					2,943				3,717
Commercial mortgage-backed	4,838				5,493				5,919				6,283				6,276					5,413				6,399
Asset-backed	5,546				5,863				5,992				5,977				5,823					5,799				5,661
U.S. Treasury and government agencies	13,081				12,881				13,101				12,805				9,929					13,021				9,846
Other	5,011				5,093				5,293				5,237				5,166					5,131				5,006
Total securities available for sale	56,727				58,139				59,817				59,979				56,509					58,217				55,758
Securities held to maturity
Residential mortgage-backed	13,549				12,790				11,852				11,465				10,521					12,736				10,215
Commercial mortgage-backed	1,211				1,393				1,458				1,532				1,666					1,353				1,747
Asset-backed	358				490				556				585				702					468				708
U.S. Treasury and government agencies	561				533				529				444				264					541				262
Other	2,000				2,007				2,041				2,030				1,983					2,015				2,016
Total securities held to maturity	17,679				17,213				16,436				16,056				15,136					17,113				14,948
Total investment securities	74,406				75,352				76,253				76,035				71,645					75,330				70,706
Loans
Commercial	109,503				106,944				103,084				101,880				100,320					106,534				99,795
Commercial real estate	29,676				29,655				29,178				29,247				29,034					29,505				28,555
Equipment lease financing	7,704				7,602				7,497				7,398				7,463					7,602				7,485
Consumer	56,062				56,342				56,843				57,164				57,163					56,413				57,612
Residential real estate	16,273				15,830				15,651				15,193				14,870					15,920				14,677
Total loans	219,218				216,373				212,253				210,882				208,850					215,974				208,124
Interest-earning deposits with banks	23,859				22,543				24,192				25,245				28,063					23,530				26,691
Other interest-earning assets	9,024				9,748				8,395				7,983				8,174					9,058				7,797
Total interest-earning assets	326,507				324,016				321,093				320,145				316,732					323,892				313,318
Noninterest-earning assets	46,890				46,286				45,323				46,041				47,138					46,172				46,289
Total assets	$	373,397			$	370,302			$	366,416			$	366,186			$	363,870				$	370,064			$	359,607
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	62,325			$	62,157			$	63,921			$	67,271			$	70,076				$	62,795			$	72,960
Demand	56,743				57,513				56,797				55,223				53,428					57,017				51,854
Savings	43,869				42,128				39,095				35,224				31,791					41,715				27,770
Time deposits	17,571				17,214				17,058				18,409				18,910					17,283				19,051
Total interest-bearing deposits	180,508				179,012				176,871				176,127				174,205					178,810				171,635
Borrowed funds
Federal Home Loan Bank borrowings	19,190				20,405				20,416				17,465				17,524					19,999				18,694
Bank notes and senior debt	26,602				24,817				22,992				21,653				22,896					24,817				21,990
Subordinated debt	5,970				6,607				7,102				8,287				8,356					6,556				8,337
Other	5,254				5,695				4,432				4,127				4,205					5,130				4,390
Total borrowed funds	57,016				57,524				54,942				51,532				52,981					56,502				53,411
Total interest-bearing liabilities	237,524				236,536				231,813				227,659				227,186					235,312				225,046
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	78,931				77,375				78,050				80,925				78,303					78,122				77,133
Accrued expenses and other liabilities	10,749				10,432				10,081				10,828				11,855					10,423				11,169
Equity	46,193				45,959				46,472				46,774				46,526					46,207				46,259
Total liabilities and equity	$	373,397			$	370,302			$	366,416			$	366,186			$	363,870				$	370,064			$	359,607

 

(a)	Calculated using average daily balances.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Table 4: Details of Net Interest Margin (Unaudited) (a)
	Three months ended																Nine months ended
	September 30			June 30			March 31			December 31			September 30				September 30			September 30
	2017			2017			2017			2016			2016				2017			2016
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.61	%		2.51	%		2.57	%		2.30	%		2.39	%			2.57	%		2.47	%
Non-agency	5.91	%		5.58	%		5.59	%		5.18	%		5.06	%			5.69	%		4.75	%
Commercial mortgage-backed	2.71	%		2.56	%		2.35	%		2.25	%		2.47	%			2.53	%		2.73	%
Asset-backed	2.53	%		2.48	%		2.50	%		2.39	%		2.31	%			2.51	%		2.27	%
U.S. Treasury and government agencies	1.83	%		1.78	%		1.66	%		1.41	%		1.33	%			1.76	%		1.46	%
Other	3.08	%		3.08	%		2.93	%		2.97	%		2.99	%			3.03	%		3.00	%
Total securities available for sale	2.63	%		2.56	%		2.53	%		2.33	%		2.42	%			2.57	%		2.50	%
Securities held to maturity
Residential mortgage-backed	2.81	%		2.82	%		2.79	%		2.52	%		2.71	%			2.80	%		2.85	%
Commercial mortgage-backed	4.42	%		4.30	%		3.50	%		4.12	%		3.51	%			4.05	%		3.55	%
Asset-backed	2.53	%		2.35	%		2.21	%		2.29	%		1.99	%			2.34	%		1.91	%
U.S. Treasury and government agencies	3.07	%		3.10	%		3.07	%		3.25	%		3.81	%			3.08	%		3.80	%
Other	5.30	%		5.28	%		5.34	%		5.35	%		6.58	%			5.31	%		5.77	%
Total securities held to maturity	3.20	%		3.22	%		3.16	%		3.04	%		3.29	%			3.19	%		3.29	%
Total investment securities	2.77	%		2.71	%		2.67	%		2.48	%		2.60	%			2.71	%		2.67	%
Loans
Commercial	3.54	%		3.45	%		3.24	%		3.11	%		3.05	%			3.41	%		3.07	%
Commercial real estate	3.65	%		3.48	%		3.27	%		3.30	%		3.23	%			3.47	%		3.30	%
Equipment lease financing	3.71	%		3.65	%		3.34	%		3.33	%		4.06	%			3.56	%		3.64	%
Consumer	4.67	%		4.52	%		4.47	%		4.35	%		4.32	%			4.55	%		4.29	%
Residential real estate	4.45	%		4.55	%		4.55	%		4.64	%		4.60	%			4.52	%		4.72	%
Total loans	3.92	%		3.82	%		3.67	%		3.59	%		3.57	%			3.81	%		3.58	%
Interest-earning deposits with banks	1.26	%		1.04	%		.81	%		.56	%		.50	%			1.03	%		.50	%
Other interest-earning assets	3.47	%		3.38	%		3.54	%		3.80	%		3.23	%			3.46	%		3.48	%
Total yield on interest-earning assets	3.45	%		3.35	%		3.22	%		3.09	%		3.07	%			3.34	%		3.11	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	.41	%		.30	%		.23	%		.21	%		.19	%			.32	%		.20	%
Demand	.14	%		.12	%		.10	%		.08	%		.08	%			.12	%		.07	%
Savings	.45	%		.45	%		.42	%		.42	%		.40	%			.44	%		.40	%
Time deposits	.79	%		.73	%		.69	%		.66	%		.66	%			.74	%		.66	%
Total interest-bearing deposits	.37	%		.32	%		.28	%		.26	%		.25	%			.32	%		.25	%
Borrowed funds
Federal Home Loan Bank borrowings	1.37	%		1.23	%		1.09	%		1.01	%		.86	%			1.23	%		.78	%
Bank notes and senior debt	2.05	%		2.00	%		1.85	%		1.55	%		1.50	%			1.98	%		1.59	%
Subordinated debt	3.48	%		3.66	%		3.49	%		3.05	%		3.06	%			3.54	%		3.20	%
Other	1.60	%		1.67	%		1.36	%		1.41	%		1.41	%			1.56	%		1.35	%
Total borrowed funds	1.93	%		1.89	%		1.74	%		1.60	%		1.53	%			1.86	%		1.54	%
Total rate on interest-bearing liabilities	.75	%		.70	%		.62	%		.56	%		.54	%			.69	%		.55	%
Interest rate spread	2.70	%		2.65	%		2.60	%		2.53	%		2.53	%			2.65	%		2.56	%
Impact of noninterest-bearing sources (b)	.21			.19			.17			.16			.15				.19			.15
Net interest margin	2.91	%		2.84	%		2.77	%		2.69	%		2.68	%			2.84	%		2.71	%

 

(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 September 30, 2017, June 30, 2017, March 31, 2017, December 31, 2016 and September 30, 2016, were $55 million, $54 million, $52 million, $50 million and $49 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2017 and September 30, 2016 were $161 million and $145 million, respectively.

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Table 5: Per Share Related Information (Unaudited)
	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions, except per share data	2017				2017				2017				2016				2016					2017				2016
Basic
Net income	$	1,126			$	1,097			$	1,074			$	1,047			$	1,006				$	3,297			$	2,938
Less:
Net income (loss) attributable to noncontrolling      interests	12				10				17				22				18					39				60
Preferred stock dividends (a)	63				55				63				42				63					181				168
Preferred stock discount accretion and redemptions	1				2				21				1				1					24				4
Net income attributable to common shareholders	1,050				1,030				973				982				924					3,053				2,706
Less:
Dividends and undistributed earnings allocated to     nonvested restricted shares	5				4				6				7				7					15				19
Net income attributable to basic common shares	$	1,045			$	1,026			$	967			$	975			$	917				$	3,038			$	2,687
Basic weighted-average common shares outstanding	479				484				487				487				490					483				496
Basic earnings per common share	$	2.18			$	2.12			$	1.99			$	2.01			$	1.87				$	6.29			$	5.41
Diluted
Net income attributable to basic common shares	$	1,045			$	1,026			$	967			$	975			$	917				$	3,038			$	2,687
Less: Impact of BlackRock earnings per share dilution	3				1				4				2				4					8				10
Net income attributable to diluted common shares	$	1,042			$	1,025			$	963			$	973			$	913				$	3,030			$	2,677
Basic weighted-average common shares outstanding	479				484				487				487				490					483				496
Dilutive potential common shares	4				4				5				7				6					5				6
Diluted weighted-average common shares outstanding	483				488				492				494				496					488				502
Diluted earnings per common share	$	2.16			$	2.10			$	1.96			$	1.97			$	1.84				$	6.21			$	5.33

 

(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)

		September 30				June 30				March 31				December 31				September 30
In millions		2017				2017				2017				2016				2016
Commercial lending
Commercial
Manufacturing		$	20,658			$	20,533			$	20,054			$	18,891			$	19,813
Retail/wholesale trade		18,256				18,101				17,446				16,752				17,211
Service providers		15,014				15,111				14,185				14,707				14,159
Real estate related (a)		12,174				12,179				11,690				11,920				12,045
Health care		9,659				9,541				9,603				9,491				9,148
Financial services		10,968				8,493				7,710				7,241				7,203
Other industries		24,588				24,599				23,077				22,362				21,933
Total commercial		111,317				108,557				103,765				101,364				101,512
Commercial real estate		29,516				29,489				29,435				29,010				29,273
Equipment lease financing		7,694				7,719				7,462				7,581				7,378
Total commercial lending		148,527				145,765				140,662				137,955				138,163
Consumer lending
Home equity		28,811				29,219				29,577				29,949				30,432
Residential real estate		16,601				16,049				15,781				15,598				15,141
Credit card		5,375				5,211				5,112				5,282				5,029
Other consumer
Automobile		12,743				12,488				12,337				12,380				11,898
Education		4,620				4,751				4,974				5,159				5,337
Other		4,432				4,551				4,383				4,510				4,446
Total consumer lending		72,582				72,269				72,164				72,878				72,283
Total loans		$	221,109			$	218,034			$	212,826			$	210,833			$	210,446

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Allowance for Loan and Lease Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses

		September 30				June 30				March 31				December 31				September 30
Three months ended - in millions		2017				2017				2017				2016				2016
Beginning balance		$	2,561			$	2,561			$	2,589			$	2,619			$	2,685
Gross charge-offs:
Commercial		(39		)		(48		)		(53		)		(61		)		(107		)
Commercial real estate		(6		)		(2		)		(1		)		(4		)		(2		)
Equipment lease financing		(4		)		(1		)		(1		)		(1		)		(1		)
Home equity		(26		)		(38		)		(34		)		(28		)		(39		)
Residential real estate		(4		)						(4		)		(3		)		(3		)
Credit card		(44		)		(46		)		(46		)		(39		)		(39		)
Other consumer		(62		)		(59		)		(59		)		(58		)		(52		)
Total gross charge-offs		(185		)		(194		)		(198		)		(194		)		(243		)
Recoveries:
Commercial		17				20				24				30				26
Commercial real estate		6				8				7				14				12
Equipment lease financing		2				1				1				1				7
Home equity		24				23				20				21				25
Residential real estate		4				4				4				2				2
Credit card		5				6				5				5				5
Other consumer		21				22				19				15				12
Total recoveries		79				84				80				88				89
Net (charge-offs) / recoveries:
Commercial		(22		)		(28		)		(29		)		(31		)		(81		)
Commercial real estate						6				6				10				10
Equipment lease financing		(2		)														6
Home equity		(2		)		(15		)		(14		)		(7		)		(14		)
Residential real estate						4								(1		)		(1		)
Credit card		(39		)		(40		)		(41		)		(34		)		(34		)
Other consumer		(41		)		(37		)		(40		)		(43		)		(40		)
Total net charge-offs		(106		)		(110		)		(118		)		(106		)		(154		)
Provision for credit losses		130				98				88				67				87
Net change in allowance for unfunded loan commitments and letters of     credit		11				1				(4		)		9				(7		)
Other		9				11				6								8
Ending balance		$	2,605			$	2,561			$	2,561			$	2,589			$	2,619
Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		.19		%		.20		%		.23		%		.20		%		.29		%
Allowance for loan and lease losses to total loans		1.18				1.17				1.20				1.23				1.24
Commercial lending net charge-offs		$	(24	)		$	(22	)		$	(23	)		$	(21	)		$	(65	)
Consumer lending net charge-offs		(82		)		(88		)		(95		)		(85		)		(89		)
Total net charge-offs		$	(106	)		$	(110	)		$	(118	)		$	(106	)		$	(154	)
Net charge-offs to average loans
Commercial lending		.06		%		.06		%		.07		%		.06		%		.19		%
Consumer lending		.45		%		.49		%		.53		%		.47		%		.49		%

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type

		September 30				June 30				March 31				December 31				September 30
In millions		2017				2017				2017				2016				2016
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade		$	76			$	86			$	106			$	87			$	59
Manufacturing		63				65				41				31				43
Service providers		48				52				44				40				43
Real estate related (a)		37				26				28				47				68
Financial services														1				1
Health care		23				33				23				30				22
Other industries		172				206				158				260				285
Total commercial		419				468				400				496				521
Commercial real estate		128				127				137				143				152
Equipment lease financing		3				4				12				16				18
Total commercial lending		550				599				549				655				691
Consumer lending (b)
Home equity		814				837				900				914				895
Residential real estate		423				439				473				501				502
Credit card		5				5				4				4				4
Other consumer
Automobile		71				66				61				55				41
Education and other		10				11				11				15				13
Total consumer lending		1,323				1,358				1,449				1,489				1,455
Total nonperforming loans (c)(d)		1,873				1,957				1,998				2,144				2,146
OREO, foreclosed and other assets		194				196				214				230				229
Total nonperforming assets		$	2,067			$	2,153			$	2,212			$	2,374			$	2,375
Nonperforming loans to total loans		.85		%		.90		%		.94		%		1.02		%		1.02		%
Nonperforming assets to total loans, OREO, foreclosed and other assets		.93		%		.99		%		1.04		%		1.12		%		1.13		%
Nonperforming assets to total assets		.55		%		.58		%		.60		%		.65		%		.64		%
Allowance for loan and lease losses to nonperforming loans		139		%		131		%		128		%		121		%		122		%

 

(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 $.3 billion at September 30, 2017 and $.4 billion for all other periods presented, which included $.2 billion of loans that are government insured/guaranteed at September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016 and $.3 billion at September 30, 2016.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Nonperforming Assets (Unaudited) (Continued)

Table 9: Change in Nonperforming Assets

		July 1, 2017 -				April 1, 2017 -				January 1, 2017 -				October 1, 2016 -				July 1, 2016 -
In millions		September 30, 2017				June 30, 2017				March 31, 2017				December 31, 2016				September 30, 2016
Beginning balance		$	2,153			$	2,212			$	2,374			$	2,375			$	2,515
New nonperforming assets		303				436				330				518				370
Charge-offs and valuation adjustments		(142		)		(152		)		(150		)		(132		)		(153		)
Principal activity, including paydowns and payoffs		(162		)		(161		)		(228		)		(279		)		(171		)
Asset sales and transfers to loans held for sale		(38		)		(58		)		(42		)		(57		)		(113		)
Returned to performing status		(47		)		(124		)		(72		)		(51		)		(73		)
Ending balance		$	2,067			$	2,153			$	2,212			$	2,374			$	2,375

Table 10: Largest Individual Nonperforming Assets at September 30, 2017 (a)

In millions
Ranking		Outstandings		Industry
1		$41		Information
2		34		Wholesale Trade
3		29		Mining, Quarrying, Oil and Gas Extraction
4		25		Mining, Quarrying, Oil and Gas Extraction
5		21		Manufacturing
6		18		Construction
7		14		Transportation and Warehousing
8		14		Manufacturing
9		13		Real Estate, Rental and Leasing
10		13		Manufacturing
Total		$222
As a percent of total nonperforming assets				11%

 

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

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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
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2017				2017				2017				2016				2016				2017			2017			2017			2016			2016
Commercial		$	44			$	42			$	62			$	81			$	64			.04	%		.04	%		.06	%		.08	%		.06	%
Commercial real estate		8				4				15				5				26				.03	%		.01	%		.05	%		.02	%		.09	%
Equipment lease financing		4				2				19				29				1				.05	%		.03	%		.25	%		.38	%		.01	%
Home equity		74				61				57				64				55				.26	%		.21	%		.19	%		.21	%		.18	%
Residential real estate
Non government insured		75				78				62				103				60				.45	%		.49	%		.39	%		.66	%		.40	%
Government insured		60				51				60				56				50				.36	%		.32	%		.38	%		.36	%		.33	%
Credit card		40				34				32				33				28				.74	%		.65	%		.63	%		.62	%		.56	%
Other consumer
Automobile		71				44				35				51				38				.56	%		.35	%		.28	%		.41	%		.32	%
Education and other
Non government insured		30				24				22				37				28				.33	%		.26	%		.24	%		.38	%		.29	%
Government insured		80				93				94				103				104				.88	%		1.00	%		1.00	%		1.07	%		1.06	%
Total		$	486			$	433			$	458			$	562			$	454			.22	%		.20	%		.22	%		.27	%		.22	%

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

		Amount																				Percent of Total Outstandings
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2017				2017				2017				2016				2016				2017			2017			2017			2016			2016
Commercial		$	28			$	26			$	29			$	20			$	24			.03	%		.02	%		.03	%		.02	%		.02	%
Commercial real estate		13				1				6				2				1				.04	%		.00	%		.02	%		.01	%		.00	%
Equipment lease financing		3				4								1				2				.04	%		.05	%					.01	%		.03	%
Home equity		31				24				23				30				27				.11	%		.08	%		.08	%		.10	%		.09	%
Residential real estate
Non government insured		17				14				23				18				20				.10	%		.09	%		.15	%		.12	%		.13	%
Government insured		54				55				54				50				51				.33	%		.34	%		.34	%		.32	%		.34	%
Credit card		25				20				21				21				19				.47	%		.38	%		.41	%		.40	%		.38	%
Other consumer
Automobile		16				12				10				12				11				.13	%		.10	%		.08	%		.10	%		.09	%
Education and other
Non government insured		15				9				11				12				13				.17	%		.10	%		.12	%		.12	%		.13	%
Government insured		53				54				50				66				68				.59	%		.58	%		.53	%		.68	%		.70	%
Total		$	255			$	219			$	227			$	232			$	236			.12	%		.10	%		.11	%		.11	%		.11	%

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

		Amount																				Percent of Total Outstandings
		Sept. 30				Jun. 30				Mar. 31				Dec. 31				Sept. 30				Sept. 30			Jun. 30			Mar. 31			Dec. 31			Sept. 30
Dollars in millions		2017				2017				2017				2016				2016				2017			2017			2017			2016			2016
Commercial		$	47			$	50			$	40			$	39			$	37			.04	%		.05	%		.04	%		.04	%		.04	%
Commercial real estate						2																			.01	%
Residential real estate
Non government insured		12				11				10				24				18				.07	%		.07	%		.06	%		.15	%		.12	%
Government insured		406				400				422				476				478				2.45	%		2.49	%		2.67	%		3.05	%		3.16	%
Credit card		38				36				37				37				31				.71	%		.69	%		.72	%		.70	%		.62	%
Other consumer
Automobile		5				4				5				5				4				.04	%		.03	%		.04	%		.04	%		.03	%
Education and other
Non government insured		9				8				9				10				9				.10	%		.09	%		.10	%		.10	%		.09	%
Government insured		161				163				176				191				189				1.78	%		1.75	%		1.88	%		1.98	%		1.93	%
Total		$	678			$	674			$	699			$	782			$	766			.31	%		.31	%		.33	%		.37	%		.36	%

 

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

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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. We offer certain products and services nationally and internationally.

Asset Management Group provides 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 estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth families. Institutional asset management provides advisory, custody and retirement administration services. The business also offers PNC proprietary mutual funds. 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, advisory and technology services and solutions to a broad base of institutional and wealth management 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 September 30, 2017, our economic interest in BlackRock was 22%.

Table 14: Period End Employees (a)

	September 30			June 30			March 31			December 31			September 30
	2017			2017			2017			2016			2016
Full-time employees
Retail Banking	29,486			29,463			29,606			29,491			29,438
Other full-time employees	20,637			20,399			20,065			19,869			19,813
Total full-time employees	50,123			49,862			49,671			49,360			49,251
Part-time employees
Retail Banking	2,422			2,554			2,492			2,458			2,577
Other part-time employees	223			540			192			188			215
Total part-time employees	2,645			3,094			2,684			2,646			2,792
Total	52,768			52,956			52,355			52,006			52,043

 

(a) See note (a) on page 11. In each of the second and third quarters of 2017, certain personnel were moved from Other into Retail Banking. Prior periods have been revised to reflect these changes.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

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

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
In millions	2017				2017				2017				2016				2016					2017				2016
Income
Retail Banking	$	232			$	230			$	213			$	228			$	224				$	675			$	795
Corporate & Institutional Banking	525				518				484				545				509					1,527				1,364
Asset Management Group	47				52				47				55				58					146				155
Other, including BlackRock (c)	322				297				330				219				215					949				624
Net income	$	1,126			$	1,097			$	1,074			$	1,047			$	1,006				$	3,297			$	2,938
Revenue
Retail Banking	$	1,819			$	1,784			$	1,724			$	1,775			$	1,816				$	5,327			$	5,429
Corporate & Institutional Banking	1,479				1,478				1,363				1,393				1,352					4,320				3,954
Asset Management Group	292				290				289				288				294					871				863
Other, including BlackRock (c)	535				508				508				418				367					1,551				1,042
Total revenue	$	4,125			$	4,060			$	3,884			$	3,874			$	3,829				$	12,069			$	11,288

 

(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 2016 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 2016 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.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Table 16: Retail Banking (Unaudited) (a)

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions	2017				2017				2017				2016				2016					2017				2016
Income Statement
Net interest income	$	1,176			$	1,139			$	1,121			$	1,120			$	1,136				$	3,436			$	3,391
Noninterest income	643				645				603				655				680					1,891				2,038
Total revenue	1,819				1,784				1,724				1,775				1,816					5,327				5,429
Provision for credit losses	77				50				71				87				102					198				210
Noninterest expense	1,375				1,370				1,315				1,328				1,359					4,060				3,963
Pretax earnings	367				364				338				360				355					1,069				1,256
Income taxes	135				134				125				132				131					394				461
Earnings	$	232			$	230			$	213			$	228			$	224				$	675			$	795
Average Balance Sheet
Loans held for sale	$	802			$	730			$	843			$	1,060			$	1,050				$	791			$	902
Loans
Consumer
Home equity	$	25,173			$	25,413			$	25,601			$	25,768			$	26,005				$	25,394			$	26,351
Automobile	12,484				12,220				12,146				11,868				11,353					12,285				11,040
Education	4,723				4,913				5,131				5,289				5,454					4,921				5,653
Credit cards	5,280				5,137				5,121				5,099				4,943					5,180				4,818
Other	1,787				1,760				1,756				1,762				1,781					1,767				1,799
Total consumer	49,447				49,443				49,755				49,786				49,536					49,547				49,661
Commercial and commercial real estate	10,630				10,925				11,006				11,082				11,201					10,852				11,520
Residential mortgage	12,382				11,918				11,688				11,169				10,798					11,999				10,518
Total loans	$	72,459			$	72,286			$	72,449			$	72,037			$	71,535				$	72,398			$	71,699
Total assets	$	88,642			$	88,671			$	87,109			$	86,133			$	85,789				$	88,589			$	85,783
Deposits
Noninterest-bearing demand	$	30,222			$	29,540			$	29,010			$	29,422			$	28,871				$	29,600			$	28,009
Interest-bearing demand	40,762				41,465				40,649				39,170				38,494					40,959				38,387
Money market	35,671				37,523				39,321				41,009				43,155					37,492				46,147
Savings	39,908				38,358				35,326				32,111				29,268					37,881				25,738
Certificates of deposit	12,962				13,304				13,735				14,150				14,601					13,331				14,978
Total deposits	$	159,525			$	160,190			$	158,041			$	155,862			$	154,389				$	159,263			$	153,259
Performance Ratios
Return on average assets	1.04		%		1.04		%		.99		%		1.05		%		1.04		%			1.02		%		1.24		%
Noninterest income to total revenue	35		%		36		%		35		%		37		%		37		%			35		%		38		%
Efficiency	76		%		77		%		76		%		75		%		75		%			76		%		73		%

 

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

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Retail Banking (Unaudited) (Continued)

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions, except as noted	2017				2017				2017				2016				2016					2017				2016
Supplemental Noninterest Income Information
Consumer services	$	273			$	277			$	250			$	269			$	267				$	800			$	792
Brokerage	$	77			$	78			$	76			$	73			$	73				$	231			$	222
Residential mortgage	$	104			$	104			$	113			$	142			$	160				$	321			$	425
Service charges on deposits	$	174			$	163			$	154			$	165			$	168				$	491			$	474
Residential Mortgage Information
Residential mortgage servicing statistics     (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	129			$	131			$	130			$	125			$	126
Serviced portfolio acquisitions	$	2			$	8			$	8			$	3			$	5				$	18			$	16
MSR asset value (b)	$	1.2			$	1.2			$	1.3			$	1.2			$	.8
MSR capitalization value (in basis points) (b)	95				95				97				94				65
Servicing income: (in millions)
Servicing fees, net (c)	$	46			$	44			$	52			$	42			$	45				$	142			$	150
Mortgage servicing rights valuation, net of economic hedge	$	7			$	11			$	12			$	35			$	30				$	30			$	57
Residential mortgage loan statistics
Loan origination volume (in billions)	$	2.5			$	2.2			$	1.9			$	3.0			$	3.1				$	6.6			$	7.6
Loan sale margin percentage	2.80		%		2.74		%		2.96		%		2.79		%		3.33		%			2.83		%		3.33		%
Percentage of originations represented by:
Purchase volume (d)	57		%		61		%		43		%		33		%		41		%			54		%		43		%
Refinance volume	43		%		39		%		57		%		67		%		59		%			46		%		57		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	54		%		52		%		52		%		51		%		50		%			53		%		49		%
Digital consumer customers (f)	62		%		62		%		61		%		60		%		59		%			61		%		57		%
Credit-related statistics
Nonperforming assets	$	1,126			$	1,149			$	1,209			$	1,257			$	1,220
Net charge-offs	$	85			$	87			$	100			$	90			$	89				$	272			$	260
Other statistics
ATMs	8,987				8,972				8,976				9,024				9,045
Branches (g)	2,474				2,481				2,508				2,520				2,600
Universal branches (h)	517				518				527				526				475
Brokerage account client assets (in billions) (i)	$	48			$	46			$	46			$	44			$	44

(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 averages for the quarterly and year-to-date periods, respectively, and net charge-offs, which are for the three months and nine months ended, respectively.

(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.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

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

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions	2017				2017				2017				2016				2016					2017				2016
Income Statement
Net interest income	$	924			$	890			$	839			$	864			$	826				$	2,653			$	2,448
Noninterest income	555				588				524				529				526					1,667				1,506
Total revenue	1,479				1,478				1,363				1,393				1,352					4,320				3,954
Provision for credit losses (benefit)	62				87				25				(3		)		8					174				180
Noninterest expense	599				602				584				567				565					1,785				1,655
Pretax earnings	818				789				754				829				779					2,361				2,119
Income taxes	293				271				270				284				270					834				755
Earnings	$	525			$	518			$	484			$	545			$	509				$	1,527			$	1,364
Average Balance Sheet
Loans held for sale	$	917			$	716			$	1,116			$	965			$	994				$	916			$	835
Loans
Commercial	$	98,794			$	96,012			$	92,116			$	90,816			$	89,146				$	95,660			$	88,302
Commercial real estate	27,559				27,575				27,091				27,124				26,990					27,410				26,528
Equipment lease financing	7,704				7,602				7,497				7,398				7,463					7,602				7,484
Total commercial lending	134,057				131,189				126,704				125,338				123,599					130,672				122,314
Consumer	222				278				331				352				399					276				449
Total loans	$	134,279			$	131,467			$	127,035			$	125,690			$	123,998				$	130,948			$	122,763
Total assets	$	150,948			$	148,267			$	142,592			$	142,325			$	141,550				$	147,299			$	139,632
Deposits
Noninterest-bearing demand	$	47,180			$	46,327			$	47,423			$	49,772			$	47,801				$	46,976			$	47,501
Money market	23,413				21,321				21,086				22,569				23,068					21,949				22,534
Interest-bearing demand and other	16,879				16,016				15,391				16,190				15,116					16,100				13,188
Total deposits	$	87,472			$	83,664			$	83,900			$	88,531			$	85,985				$	85,025			$	83,223
Performance Ratios
Return on average assets	1.38		%		1.40		%		1.38		%		1.52		%		1.43		%			1.39		%		1.31		%
Noninterest income to total revenue	38		%		40		%		38		%		38		%		39		%			39		%		38		%
Efficiency	41		%		41		%		43		%		41		%		42		%			41		%		42		%
Other Information
Commercial loan servicing portfolio (in billions) (b) (c)	$	513			$	502			$	490			$	487			$	461
Consolidated revenue from: (d)
Treasury Management (e)	$	384			$	372			$	359			$	358			$	347				$	1,115			$	990
Capital Markets (e)	$	231			$	268			$	247			$	208			$	213				$	746			$	600
Commercial mortgage banking activities
Commercial mortgage loans held for sale (f)	$	22			$	38			$	13			$	50			$	27				$	73			$	77
Commercial mortgage loan servicing income (g)	56				55				58				62				62					169				186
Commercial mortgage servicing rights valuation, net of economic hedge (h)	6				19				16				22				1					41				22
Total	$	84			$	112			$	87			$	134			$	90				$	283			$	285
Average Loans (by C&IB business)
Corporate Banking	$	56,867			$	54,937			$	53,839			$	52,920			$	51,904				$	55,242			$	50,879
Real Estate	38,516				38,318				37,136				37,262				36,721					37,995				36,235
Business Credit	16,097				15,645				14,839				14,741				14,772					15,531				14,770
Equipment Finance	13,744				13,481				12,478				12,096				11,771					13,239				11,736
Commercial Banking	7,042				7,124				7,041				6,914				7,074					7,052				7,242
Other	2,013				1,962				1,702				1,757				1,756					1,889				1,901
Total average loans	$	134,279			$	131,467			$	127,035			$	125,690			$	123,998				$	130,948			$	122,763
Net carrying amount of commercial mortgage servicing rights (c)	$	628			$	618			$	606			$	576			$	473
Credit-related statistics
Nonperforming assets (c)	$	549			$	586			$	546			$	691			$	712
Net charge-offs	$	22			$	21			$	21			$	17			$	65				$	64			$	163

 

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

(b)	Represents loans serviced (exclusive of agented responsibilities) for PNC and others.

(c)	Presented as of period end.

(d)	Represents consolidated PNC amounts.

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

(f)	Includes other noninterest income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, originations 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 service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to time decay and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(h)	Includes amounts reported in corporate service fees.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

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

	Three months ended																					Nine months ended
	September 30				June 30				March 31				December 31				September 30					September 30				September 30
Dollars in millions, except as noted	2017				2017				2017				2016				2016					2017				2016
Income Statement
Net interest income	$	72			$	73			$	71			$	73			$	74				$	216			$	227
Noninterest income	220				217				218				215				220					655				636
Total revenue	292				290				289				288				294					871				863
Provision for credit losses (benefit)	3				(7		)		(2		)		(6		)		(3		)			(6		)
Noninterest expense	214				215				217				207				206					646				618
Pretax earnings	75				82				74				87				91					231				245
Income taxes	28				30				27				32				33					85				90
Earnings	$	47			$	52			$	47			$	55			$	58				$	146			$	155
Average Balance Sheet
Loans
Consumer	$	4,977			$	5,089			$	5,113			$	5,266			$	5,350				$	5,059			$	5,493
Commercial and commercial real estate	680				700				728				738				721					705				759
Residential mortgage	1,330				1,246				1,190				1,137				1,069					1,257				1,032
Total loans	$	6,987			$	7,035			$	7,031			$	7,141			$	7,140				$	7,021			$	7,284
Total assets	$	7,464			$	7,516			$	7,476			$	7,597			$	7,588				$	7,499			$	7,743
Deposits
Noninterest-bearing demand	$	1,464			$	1,468			$	1,433			$	1,497			$	1,426				$	1,501			$	1,409
Interest-bearing demand	3,469				3,704				3,829				3,844				3,845					3,666				4,069
Money market	3,058				3,219				3,500				3,682				3,850					3,257				4,278
Savings	3,961				3,770				3,768				3,113				2,524					3,834				2,032
Other	237				230				246				272				275					237				275
Total deposits	$	12,189			$	12,391			$	12,776			$	12,408			$	11,920				$	12,495			$	12,063
Performance Ratios
Return on average assets	2.50		%		2.78		%		2.55		%		2.87		%		3.03		%			2.60		%		2.68		%
Noninterest income to total revenue	75		%		75		%		75		%		75		%		75		%			75		%		74		%
Efficiency	73		%		74		%		75		%		72		%		70		%			74		%		72		%
Other Information
Nonperforming assets (b)	$	45			$	49			$	51			$	53			$	51
Net charge-offs	$	3			$	1			$	1			$	2			$	1				$	5			$	7
Client Assets Under Administration     (in billions) (b) (c)
Discretionary client assets under management	$	146			$	141			$	141			$	137			$	138
Nondiscretionary client assets under administration	129				125				123				120				119
Total	$	275			$	266			$	264			$	257			$	257
Discretionary client assets under management
Personal	$	90			$	89			$	87			$	85			$	85
Institutional	56				52				54				52				53
Total	$	146			$	141			$	141			$	137			$	138
Equity	$	75			$	72			$	71			$	68			$	67
Fixed income	49				49				50				49				49
Liquidity/Other	22				20				20				20				22
Total	$	146			$	141			$	141			$	137			$	138

 

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

(b)	As of period end.

(c)	Excludes brokerage account client assets.

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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.

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.

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THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

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).

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.

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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.