PNC FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.1 - FINANCIAL SUPPLEMENT (UNAUDITED) FOR FIRST QUARTER 2010

Attached files

file	filename
8-K - FORM 8-K - PNC FINANCIAL SERVICES GROUP, INC.	d8k.htm
EX-99.2 - ELECTRONIC PRESENTATION SLIDES FOR EARNINGS RELEASE CONFERENCE CALL - PNC FINANCIAL SERVICES GROUP, INC.	dex992.htm

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2010

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2010

(UNAUDITED)


		Page

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

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on April 22, 2010. We have reclassified certain prior period amounts to be consistent with the current period presentation. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (“SEC”) filings.

BUSINESS

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

PENDING SALE OF PNC GLOBAL INVESTMENT SERVICING

On February 2, 2010, we entered into a definitive agreement to sell PNC Global Investment Servicing Inc. (GIS), a leading provider of processing, technology and business intelligence services to asset managers, broker-dealers and financial advisors worldwide, for $2.3 billion in cash. We currently anticipate closing the transaction in the third quarter of 2010. Completion of the transaction is subject to regulatory approvals and certain other closing conditions. Results of operations of GIS are presented as income from discontinued operations, net of income taxes, on our Consolidated Income Statement for all periods presented. As a result of its pending sale, GIS is no longer a reportable business segment.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)


	Three months ended
*In millions, except per share data*	March 31 2010			December 31 2009			September 30 2009			June 30 2009			March 31 2009
Interest Income
Loans	$	2,160		$	2,160		$	2,091		$	2,203		$	2,465
Investment securities		623			643			684			672			689
Other		122			136			113			125			105

Total interest income		2,905			2,939			2,888			3,000			3,259

Interest Expense
Deposits		281			334			387			474			546
Borrowed funds		245			259			277			333			393

Total interest expense		526			593			664			807			939

Net interest income		2,379			2,346			2,224			2,193			2,320

Noninterest Income
Asset management		259			219			242			208			189
Consumer services		296			315			330			329			316
Corporate services		268			260			252			264			245
Residential mortgage		147			107			207			245			431
Service charges on deposits		200			236			248			242			224
Net gains on sales of securities		90			144			168			182			56
Net other-than-temporary impairments		(116	)		(144	)		(129	)		(155	)		(149	)
Gain on BlackRock/BGI transaction (a)					1,076
Other		240			327			311			295			54

Total noninterest income		1,384			2,540			1,629			1,610			1,366

Total revenue		3,763			4,886			3,853			3,803			3,686
Provision For Credit Losses		751			1,049			914			1,087			880
Noninterest Expense
Personnel		956			969			1,068			1,086			996
Occupancy		187			180			172			182			179
Equipment		172			173			170			174			178
Marketing		50			59			58			59			57
Other		748			828			746			991			748

Total noninterest expense		2,113			2,209			2,214			2,492			2,158

Income from continuing operations before income taxes and noncontrolling interests		899			1,628			725			224			648
Income taxes		251			525			185			29			128

Income from continuing operations before noncontrolling interests		648			1,103			540			195			520
Income from discontinued operations (net of income taxes of $14, $32, $11, $6, and $5)		23			4			19			12			10

Net income		671			1,107			559			207			530

Less: Net income (loss) attributable to noncontrolling interests		(5	)		(37	)		(20	)		9			4
Preferred stock dividends		93			119			99			119			51
Preferred stock discount accretion		250			14			13			14			15

Net income attributable to common shareholders	$	333		$	1,011		$	467		$	65		$	460

Basic Earnings Per Common Share
Continuing operations	$	.62		$	2.18		$	.97		$	.11		$	1.02
Discontinued operations		.05			.01			.04			.03			.02

Net income	$	.67		$	2.19		$	1.01		$	.14		$	1.04
Diluted Earnings Per Common Share
Continuing operations	$	.61		$	2.16		$	.96		$	.11		$	1.01
Discontinued operations		.05			.01			.04			.03			.02

Net income	$	.66		$	2.17		$	1.00		$	.14		$	1.03
Average Common Shares Outstanding
Basic		498			460			460			451			443
Diluted		500			462			461			453			444

Efficiency		56	%		45	%		57	%		66	%		59	%

Noninterest income to total revenue		37	%		52	%		42	%		42	%		37	%

Effective tax rate (b)		27.9	%		32.2	%		25.5	%		12.9	%		19.8	%

(a)

The after-tax impact to net income was $687 million for the fourth quarter of 2009. The earnings per diluted share impact was $1.49 for the fourth quarter of 2009. BlackRock/BGI transaction refers to BlackRock’s acquisition of Barclays Global Investors in exchange for cash and BlackRock common and participating preferred stock on December 1, 2009.

(b)	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 higher effective tax rate for the fourth quarter of 2009 resulted from the gain on the BlackRock/BGI transaction.

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)


*In millions, except par value*	March 31 2010			December 31 2009			September 30 2009			June 30 2009			March 31 2009
Assets
Cash and due from banks (a)	$	3,563		$	4,288		$	3,426		$	3,797		$	3,576
Federal funds sold and resale agreements (b)		1,367			2,390			2,427			1,814			1,554
Trading securities		1,595			2,124			2,075			1,925			1,087
Interest-earning deposits with banks (a)		607			4,488			1,129			10,190			14,783
Loans held for sale (b)		2,691			2,539			3,509			4,662			4,045
Investment securities (a)		57,606			56,027			54,413			49,969			46,253
Loans (a) (b)		157,266			157,543			160,608			165,009			171,373
Allowance for loan and lease losses (a)		(5,319	)		(5,072	)		(4,810	)		(4,569	)		(4,299	)

Net loans		151,947			152,471			155,798			160,440			167,074
Goodwill		9,425			9,505			9,286			9,206			8,855
Other intangible assets		3,289			3,404			3,448			3,684			3,323
Equity investments (a)		10,256			10,254			8,684			8,168			8,215
Other (a) (b)		23,050			22,373			27,212			25,899			27,657

Total assets	$	265,396		$	269,863		$	271,407		$	279,754		$	286,422


Liabilities
Deposits
Noninterest-bearing	$	43,122		$	44,384		$	43,025		$	41,806		$	40,610
Interest-bearing		139,401			142,538			140,784			148,633			154,025

Total deposits		182,523			186,922			183,809			190,439			194,635
Borrowed funds
Federal funds purchased and repurchase agreements		5,511			3,998			3,996			3,921			4,789
Federal Home Loan Bank borrowings		8,700			10,761			11,953			14,777			16,985
Bank notes and senior debt		12,638			12,362			12,424			13,292			13,828
Subordinated debt		10,001			9,907			10,501			10,383			10,694
Other (a)		5,611			2,233			3,036			2,308			2,163

Total borrowed funds		42,461			39,261			41,910			44,681			48,459
Allowance for unfunded loan commitments and letters of credit		252			296			324			319			328
Accrued expenses (a)		2,939			3,590			3,592			3,651			3,340
Other (a)		7,787			7,227			10,109			11,197			11,004

Total liabilities		235,962			237,296			239,744			250,287			257,766


Equity
Preferred stock (c)
Common stock - $5 par value Authorized 800 shares, issued 535, 471, 469, 468, and 452 shares		2,676			2,354			2,348			2,342			2,261
Capital surplus - preferred stock		645			7,974			7,960			7,947			7,933
Capital surplus - common stock and other		11,945			8,945			8,860			8,783			8,284
Retained earnings		13,340			13,144			12,179			11,758			11,738
Accumulated other comprehensive loss		(1,288	)		(1,962	)		(1,947	)		(3,101	)		(3,289	)
Common stock held in treasury at cost: 9, 9, 8, 7, and 7 shares		(500	)		(513	)		(472	)		(435	)		(450	)

Total shareholders’ equity		26,818			29,942			28,928			27,294			26,477
Noncontrolling interests		2,616			2,625			2,735			2,173			2,179

Total equity		29,434			32,567			31,663			29,467			28,656

Total liabilities and equity	$	265,396		$	269,863		$	271,407		$	279,754		$	286,422

Capital Ratios
Tier 1 risk-based (d)		9.9	%		11.4	%		10.9	%		10.5	%		10.0	%
Tier 1 common (d)		7.6			6.0			5.5			5.3			4.9
Total risk-based (d)		13.4			15.0			14.5			14.1			13.6
Leverage (d)		8.9			10.1			9.6			9.1			8.9
Common shareholders’ equity to assets		10.0			8.2			7.7			6.9			6.5

(a)

Amounts include consolidated variable interest entities. Some March 31, 2010 amounts include consolidated variable interest entities that we consolidated effective January 1, 2010 based on guidance in ASU 2009-17, Consolidations. Our first quarter 2010 Form 10-Q will include additional information regarding these Consolidated Balance Sheet line items.

(b)	Amounts include items for which PNC has elected the fair value option. Our first quarter 2010 Form 10-Q will include additional information regarding these Consolidated Balance Sheet line items.

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

(d)	The ratio as of March 31, 2010 is estimated.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)


	Three months ended
*In millions*	March 31 2010			December 31 2009			September 30 2009			June 30 2009			March 31 2009
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	21,926		$	22,663		$	20,838		$	21,007		$	23,065
Non-agency		10,213			10,788			11,553			12,520			13,140
Commercial mortgage-backed		5,357			5,053			5,052			4,624			4,252
Asset-backed		1,992			1,927			1,911			1,985			2,031
US Treasury and government agencies		7,493			6,403			6,026			4,185			1,222
State and municipal		1,365			1,346			1,367			1,366			1,334
Other debt		1,874			1,948			1,647			1,012			684
Corporate stocks and other		457			362			388			386			457

Total securities available for sale		50,677			50,490			48,782			47,085			46,185
Securities held to maturity (a)		5,935			5,014			4,286			3,860			3,402

Total investment securities		56,612			55,504			53,068			50,945			49,587
Loans
Commercial		55,464			55,633			58,457			63,570			67,232
Commercial real estate		22,423			23,592			24,491			25,418			25,622
Equipment lease financing		6,131			6,164			6,045			6,191			6,406
Consumer		55,349			52,911			52,066			51,878			52,618
Residential mortgage		19,397			19,891			20,847			21,831			21,921

Total loans		158,764			158,191			161,906			168,888			173,799
Loans held for sale		2,476			2,949			3,696			4,757			4,521
Federal funds sold and resale agreements		1,669			1,700			2,417			1,726			1,610
Other		7,471			12,654			14,607			16,870			14,728

Total interest-earning assets		226,992			230,998			235,694			243,186			244,245
Noninterest-earning assets:
Allowance for loan and lease losses		(5,136	)		(4,517	)		(4,264	)		(4,385	)		(4,095	)
Cash and due from banks		3,735			3,657			3,547			3,558			3,832
Other		41,557			41,740			39,071			38,496			36,870

Total assets	$	267,148		$	271,878		$	274,048		$	280,855		$	280,852

(a)	Primarily consists of commercial mortgage-backed and asset-backed securities.

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)


	Three months ended
*In millions*	March 31 2010		December 31 2009		September 30 2009		June 30 2009		March 31 2009
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	57,923	$	56,298	$	56,662	$	55,464	$	52,828
Demand		24,672		24,223		23,874		23,629		22,156
Savings		6,623		6,381		6,652		6,678		6,266
Retail certificates of deposit		47,162		49,645		53,468		57,357		57,970
Other time		1,039		1,389		2,841		5,259		10,670
Time deposits in foreign offices		3,034		4,013		3,356		3,348		3,832

Total interest-bearing deposits		140,453		141,949		146,853		151,735		153,722
Borrowed funds
Federal funds purchased and repurchase agreements		4,344		4,046		4,422		4,283		5,016
Federal Home Loan Bank borrowings		9,603		10,880		12,996		15,818		17,097
Bank notes and senior debt		12,616		12,327		12,542		13,688		13,384
Subordinated debt		9,769		9,879		10,214		10,239		10,439
Other		5,934		2,448		2,806		2,170		1,944

Total borrowed funds		42,266		39,580		42,980		46,198		47,880

Total interest-bearing liabilities		182,719		181,529		189,833		197,933		201,602
Noninterest-bearing liabilities and equity:
Demand and other noninterest-bearing deposits		42,631		44,325		41,816		40,965		38,489
Allowance for unfunded loan commitments and letters of credit		295		324		319		328		344
Accrued expenses and other liabilities		10,401		13,353		11,489		11,990		11,872
Equity		31,102		32,347		30,591		29,639		28,545

Total liabilities and equity	$	267,148	$	271,878	$	274,048	$	280,855	$	280,852

Supplemental Average Balance Sheet Information (Unaudited)

Deposits and Common Shareholders’ Equity


Interest-bearing deposits	$	140,453	$	141,949	$	146,853	$	151,735	$	153,722
Demand and other noninterest-bearing deposits		42,631		44,325		41,816		40,965		38,489

Total deposits	$	183,084	$	186,274	$	188,669	$	192,700	$	192,211

Transaction deposits	$	125,226	$	124,846	$	122,352	$	120,058	$	113,473

Common shareholders’ equity	$	24,764	$	21,726	$	20,391	$	19,527	$	18,405

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Margin (Unaudited)


	Three months ended
	March 31 2010		December 31 2009		September 30 2009		June 30 2009		March 31 2009
Net Interest Margin (a)
Average yields/rates
Yield on interest-earning assets
Loans	5.50	%	5.42	%	5.12	%	5.22	%	5.72	%
Investment securities	4.44		4.67		5.20		5.32		5.59
Other	4.26		3.17		2.18		2.14		2.10
Total yield on interest-earning assets	5.17		5.07		4.88		4.94		5.38
Rate on interest-bearing liabilities
Deposits	.81		.93		1.04		1.25		1.44
Borrowed funds	2.33		2.60		2.57		2.97		3.42
Total rate on interest-bearing liabilities	1.16		1.30		1.39		1.65		1.91

Interest rate spread	4.01		3.77		3.49		3.29		3.47
Impact of noninterest-bearing sources	.23		.28		.27		.31		.34

Net interest margin	4.24	%	4.05	%	3.76	%	3.60	%	3.81	%

(a)

Calculated as annualized taxable-equivalent net interest income divided by average earning assets. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all earning assets in calculating net interest margins, in this table we use net interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended March 31, 2010, December 31, 2009, September 30, 2009, June 30, 2009, and March 31, 2009 were $18 million, $18 million, $16 million, $16 million, and $15 million, respectively.

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans (Unaudited)


*In millions*	March 31 2010		December 31 2009		September 30 2009		June 30 2009		March 31 2009
Commercial
Retail/wholesale	$	9,557	$	9,515	$	9,404	$	10,141	$	11,226
Manufacturing		9,863		9,880		10,639		11,595		12,796
Other service providers		8,528		8,256		8,364		8,491		8,674
Real estate related (a)		7,379		7,403		7,854		8,346		8,926
Financial services		4,654		3,874		4,422		5,078		5,050
Health care		2,998		2,970		2,888		3,045		3,079
Other		11,724		12,920		13,357		13,898		15,446

Total commercial		54,703		54,818		56,928		60,594		65,197

Commercial real estate
Real estate projects		14,535		15,582		16,112		16,542		16,830
Commercial mortgage		7,415		7,549		7,952		8,323		8,590

Total commercial real estate		21,950		23,131		24,064		24,865		25,420

Equipment lease financing		6,111		6,202		6,283		6,092		6,300

TOTAL COMMERCIAL LENDING		82,764		84,151		87,275		91,551		96,917

Consumer
Home equity
Lines of credit		24,040		24,236		24,272		24,373		24,112
Installment		11,390		11,711		12,098		12,346		12,934
Education		8,320		7,468		6,370		5,340		5,127
Automobile		2,206		2,013		1,988		1,784		1,737
Credit card and other unsecured lines of credit		4,962		3,536		3,533		3,261		3,148
Other		4,316		4,618		4,614		4,833		4,910

Total consumer		55,234		53,582		52,875		51,937		51,968

Residential real estate
Residential mortgage		17,599		18,190		18,469		19,342		19,661
Residential construction		1,669		1,620		1,989		2,179		2,827

Total residential real estate		19,268		19,810		20,458		21,521		22,488

TOTAL CONSUMER LENDING		74,502		73,392		73,333		73,458		74,456

Total (b)	$	157,266	$	157,543	$	160,608	$	165,009	$	171,373


(a) Includes loans to customers in the real estate and construction industries.
(b) Includes purchased impaired loans related to National City	$	9,673	$	10,287	$	11,064	$	12,289	$	12,560

Details of Loans Held for Sale (Unaudited)


*In millions*	March 31 2010		December 31 2009		September 30 2009		June 30 2009		March 31 2009
Commercial mortgage	$	1,316	$	1,301	$	1,810	$	1,531	$	1,648
Residential mortgage		1,158		1,012		1,552		2,886		2,244
Other		217		226		147		245		153

Total	$	2,691	$	2,539	$	3,509	$	4,662	$	4,045

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

Purchase Accounting Accretion and Accretable Interest (Unaudited)

VALUATION OF FASB ASC 310-30 (AICPA SOP 03-3) PURCHASED IMPAIRED LOANS


	December 31, 2008					December 31, 2009					March 31, 2010
*Dollars in billions*	Balance			Net Investment		Balance			Net Investment		Balance			Net Investment
Commercial and commercial real estate loans:
Unpaid principal balance	$	6.3				$	3.5				$	2.9
Purchased impaired mark		(3.4	)				(1.3	)				(1.0	)

Recorded investment		2.9					2.2					1.9
Allowance for loan losses		—					(.2	)				(.3	)

Net investment		2.9		46	%		2.0		57	%		1.6		55	%

Consumer and residential mortgage loans:
Unpaid principal balance		15.6					11.7					10.6
Purchased impaired mark		(5.8	)				(3.6	)				(2.8	)

Recorded investment		9.8					8.1					7.8
Allowance for loan losses		—					(.3	)				(.3	)

Net investment		9.8		63	%		7.8		67	%		7.5		71	%


Total FASB ASC 310-30 purchased impaired loans:
Unpaid principal balance		21.9					15.2					13.5
Purchased impaired mark		(9.2	)				(4.9	)				(3.8	)

Recorded investment		12.7					10.3					9.7
Allowance for loan losses		—					(.5	)				(.6	) (a)

Net investment	$	12.7		58	%	$	9.8		64	%	$	9.1		67	%

PURCHASE ACCOUNTING ACCRETION


	Three months ended
*In millions*	March 31 2009			June 30 2009			September 30 2009			December 31 2009			March 31 2010
Non-impaired loans	$	322		$	168		$	172		$	111		$	112
Impaired loans		257			220			193			244			265
Reversal of contractual interest on impaired loans		(223	)		(194	)		(167	)		(168	)		(134	)

Net impaired loans		34			26			26			76			131
Securities		31			41			25			21			11
Deposits		312			264			231			189			167
Borrowings		(85	)		(52	)		(58	)		(55	)		(56	)

Total	$	614		$	447		$	396		$	342		$	365


Cash received in excess of recorded investment from sales or payoffs of impaired commercial loans (cash recoveries)				$	39		$	11		$	154		$	75

ACCRETABLE NET INTEREST


*In billions*	December 31 2008			December 31 2009			March 31 2010
Non-impaired loans	$	2.4		$	1.6		$	1.5
Impaired loans (b)		3.7			3.5			3.6

Total loans (gross)		6.1			5.1			5.1
Securities		.2			.1			.1
Deposits		2.1			1.0			.9
Borrowings		(1.5	)		(1.2	)		(1.2	)

Total	$	6.9		$	5.0		$	4.9

ACCRETABLE NET INTEREST - PURCHASED IMPAIRED LOANS


*In billions*
December 31, 2009	$	3.5
Accretion		(.3	)
Cash recoveries		(.1	)
Net reclass to accretable difference and other activity		.5

March 31, 2010	$	3.6


*In billions*
December 31, 2008	$	3.7
Accretion		(1.2	)
Cash recoveries		(.3	)
Net reclass to accretable difference and other activity		1.4

March 31, 2010	$	3.6

(a)	Additional impairment reserves of $.6 billion do not recognize the incremental accretable yield of $1.4 billion related to certain purchased impaired loans with improving estimated cash flows. This income will be recognized over time.

(b)

Adjustments to accretable net interest include purchase accounting accretion, reclassifications from non-accretable to accretable interest as a result of increases in estimated cash flows, and reductions in the accretable amount as a result of the identification of additional purchased impaired loans as of the National City acquisition close date of December 31, 2008.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

Accruing Loans Past Due (Unaudited)

Accruing Loans Past Due 30 To 89 Days (a)


	Amount										Percent of Total Outstandings
*Dollars in millions*	March 31 2010		Dec. 31 2009		Sept. 30 2009		June 30 2009		March 31 2009		March 31 2010		Dec. 31 2009		Sept. 30 2009		June 30 2009		March 31 2009
Commercial	$	571	$	684	$	633	$	640	$	741	1.05	%	1.26	%	1.13	%	1.07	%	1.16	%
Commercial real estate		859		666		743		654		398	4.19		3.10		3.34		2.85		1.70
Equipment lease financing		130		128		50		52		69	2.13		2.06		.80		.85		1.10
Consumer		440		438		444		401		421	.85		.87		.90		.83		.87
Residential real estate		464		472		510		448		507	3.14		3.12		3.29		2.83		3.01

Total (b)	$	2,464	$	2,388	$	2,380	$	2,195	$	2,136	1.67	%	1.62	%	1.59	%	1.44	%	1.34	%


Accruing Loans Past Due 90 Days Or More (a)

	Amount										Percent of Total Outstandings
*Dollars in millions*	March 31 2010		Dec. 31 2009		Sept. 30 2009		June 30 2009		March 31 2009		March 31 2010		Dec. 31 2009		Sept. 30 2009		June 30 2009		March 31 2009
Commercial	$	197	$	188	$	196	$	153	$	80	.36	%	.35	%	.35	%	.26	%	.12	%
Commercial real estate		106		150		184		104		61	.52		.70		.83		.45		.26
Equipment lease financing		6		6		3		6			.10		.10		.05		.10
Consumer		248		226		216		198		183	.48		.45		.44		.41		.38
Residential real estate		284		314		276		582		177	1.92		2.07		1.78		3.68		1.05

Total (c)	$	841	$	884	$	875	$	1,043	$	501	.57	%	.60	%	.59	%	.68	%	.32	%

(a)	Excludes loans that are government insured/guaranteed, primarily residential mortgages.

(b)

Excludes purchased impaired loans acquired from National City totaling $.6 billion at March 31, 2010, $0.8 billion at December 31, 2009, $0.8 billion at September 30, 2009, $1.1 billion at June 30, 2009, and $1.2 billion at March 31, 2009. These loans are excluded as they were recorded at estimated fair value when acquired and are currently considered performing loans due to the accretion of interest in purchase accounting.

(c)

Excludes purchased impaired loans acquired from National City totaling $2.5 billion at March 31, 2010, $2.7 billion at December 31, 2009, $3.0 billion at September 30, 2009, $2.9 billion at June 30, 2009, and $2.2 billion at March 31, 2009. These loans are excluded as they were recorded at estimated fair value when acquired and are currently considered performing loans due to the accretion of interest in purchase accounting.

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

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

Change in Allowance for Loan and Lease Losses


*Three months ended - in millions*	March 31 2010			December 31 2009			September 30 2009			June 30 2009			March 31 2009
Beginning balance	$	5,072		$	4,810		$	4,569		$	4,299		$	3,917
Charge-offs:
Commercial		(273	)		(380	)		(323	)		(364	)		(209	)
Commercial real estate		(238	)		(260	)		(20	)		(124	)		(106	)
Equipment lease financing		(36	)		(34	)		(42	)		(50	)		(23	)
Consumer		(242	)		(267	)		(257	)		(289	)		(148	)
Residential real estate		(38	)		(83	)		(96	)		(54	)		(26	)

Total charge-offs		(827	)		(1,024	)		(738	)		(881	)		(512	)
Recoveries:
Commercial		65			87			42			36			16
Commercial real estate		33			15			8			10			5
Equipment lease financing		12			10			7			5			5
Consumer		26			27			23			28			27
Residential real estate					50			8			7			28

Total recoveries		136			189			88			86			81
Net charge-offs:
Commercial		(208	)		(293	)		(281	)		(328	)		(193	)
Commercial real estate		(205	)		(245	)		(12	)		(114	)		(101	)
Equipment lease financing		(24	)		(24	)		(35	)		(45	)		(18	)
Consumer		(216	)		(240	)		(234	)		(261	)		(121	)
Residential real estate		(38	)		(33	)		(88	)		(47	)		2

Total net charge-offs		(691	)		(835	)		(650	)		(795	)		(431	)
Provision for credit losses		751			1,049			914			1,087			880
Acquired allowance adjustments (a)		2			20			(18	)		(31	)		(83	)
Adoption of ASU 2009-17, Consolidations		141
Net change in allowance for unfunded loan commitments and letters of credit		44			28			(5	)		9			16

Ending balance	$	5,319		$	5,072		$	4,810		$	4,569		$	4,299

Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		1.77	%		2.09	%		1.59	%		1.89	%		1.01	%
Allowance for loan and lease losses to total loans		3.38			3.22			2.99			2.77			2.51

Commercial lending net charge-offs	$	(437	)	$	(562	)	$	(328	)	$	(487	)	$	(312	)
Consumer lending net charge-offs		(254	)		(273	)		(322	)		(308	)		(119	)

Total net charge-offs	$	(691	)	$	(835	)	$	(650	)	$	(795	)	$	(431	)

Net charge-offs to average loans
Commercial lending		2.11	%		2.61	%		1.46	%		2.05	%		1.27	%
Consumer lending		1.38			1.49			1.75			1.68			.65

(a)	Related to our December 31, 2008 National City acquisition.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


*Three months ended - in millions*	March 31 2010			December 31 2009			September 30 2009		June 30 2009			March 31 2009
Beginning balance	$	296		$	324		$	319	$	328		$	344
Net change in allowance for unfunded loan commitments and letters of credit		(44	)		(28	)		5		(9	)		(16	)

Ending balance	$	252		$	296		$	324	$	319		$	328

Net Unfunded Commitments


*In millions*	March 31 2010		December 31 2009		September 30 2009		June 30 2009		March 31 2009
Net unfunded commitments	$	99,179	$	100,795	$	102,669	$	103,058	$	102,821

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


*In millions*	March 31 2010			December 31 2009			September 30 2009			June 30 2009			March 31 2009
Nonperforming loans
Commercial
Retail/wholesale	$	246		$	231		$	219		$	171		$	149
Manufacturing		341			423			387			410			334
Other service providers		527			394			348			243			224
Real estate related (a)		460			419			396			322			226
Financial services		77			117			200			58			58
Health care		48			41			48			89			104
Other		134			181			232			157			119

Total commercial		1,833			1,806			1,830			1,450			1,214

Commercial real estate
Real estate projects		1,797			1,754			1,637			1,426			1,012
Commercial mortgage		419			386			235			230			200

Total commercial real estate		2,216			2,140			1,872			1,656			1,212

Equipment lease financing		123			130			164			120			121

TOTAL COMMERCIAL LENDING		4,172			4,076			3,866			3,226			2,547

Consumer
Home equity		337			356			207			164			75
Other		35			36			25			34			24

Total consumer		372			392			232			198			99
Residential real estate
Residential mortgage		968			955			790			663			299
Residential construction		249			248			238			69			15

Total residential real estate		1,217			1,203			1,028			732			314

TOTAL CONSUMER LENDING		1,589			1,595			1,260			930			413

Total nonperforming loans (b) (c) (d)		5,761			5,671			5,126			4,156			2,960

Foreclosed and other assets
Commercial lending		328			266			145			113			93
Consumer lending		451			379			373			387			465

Total foreclosed and other assets		779			645			518			500			558

Total nonperforming assets	$	6,540		$	6,316		$	5,644		$	4,656		$	3,518

Nonperforming loans to total loans		3.66	%		3.60	%		3.19	%		2.52	%		1.73	%
Nonperforming assets to total loans and foreclosed and other assets		4.14			3.99			3.50			2.81			2.05
Nonperforming assets to total assets		2.46			2.34			2.08			1.66			1.23
Allowance for loan and lease losses to nonperforming loans		92			89			94			110			145

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

(b)

Loans whose contractual terms have been restructured in a manner which grants a concession to a borrower experiencing financial difficulties where we do not receive adequate compensation are considered troubled debt restructurings (TDRs). TDRs typically result from our loss mitigation activities and could include rate reductions, principal forgiveness, forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of collateral. Total nonperforming loans include TDRs of $385 million at March 31, 2010 and $440 million at December 31, 2009.

(c)	TDRs returned to performing (accrual) status totaled $217 million at March 31, 2010 and are excluded from nonperforming loans. These loans have demonstrated a period of at least six months of performance under the modified terms.

(d)

Credit cards and certain small business and consumer credit agreements whose terms have been modified totaled $279 million at March 31, 2010 and are excluded from nonperforming loans. Our policy is generally to exempt these loans from being placed on nonaccrual status as permitted by regulatory guidance as these loans are directly charged off in the period that they become 180 days past due.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Change in Nonperforming Assets


*In millions*
January 1, 2010		$ 6,316
Transferred in		1,774
Charge-offs/valuation adjustments		(620	)
Principal activity including payoffs		(278	)
Returned to performing - TDRs		(217	)
Returned to performing - Other		(170	)
Sales		(265	)

March 31, 2010	$	6,540

Largest Individual Nonperforming Assets at March 31, 2010 (a)


*In millions*
Ranking	Outstandings		Industry
1	$	32	Real Estate
2		32	Real Estate
3		30	Real Estate
4		28	Real Estate
5		25	Real Estate
6		25	Real Estate
7		24	Finance Companies
8		24	Real Estate
9		24	Real Estate
10		23	Real Estate

Total	$	267


As a percent of total nonperforming assets	4	%

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

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

Business Segment Descriptions (Unaudited)

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

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government and not-for-profit entities, and selectively to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services. Capital markets-related products and services include foreign exchange, derivatives, loan syndications, mergers and acquisitions advisory and related services to middle-market companies, our multi-seller conduit, securities underwriting, and securities sales and trading. Corporate & Institutional Banking also provides commercial loan servicing, and real estate advisory and technology solutions for the commercial real estate finance industry. Corporate & Institutional Banking provides products and services generally within our primary geographic markets, with certain products and services offered nationally.

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

Residential Mortgage Banking directly originates primarily first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint and also originates loans through joint venture partners. Mortgage loans represent loans collateralized by one-to-four-family residential real estate and are made to borrowers in good credit standing. These loans are typically underwritten to government agency and/or third party standards, and sold, servicing retained, to primary mortgage conduits Federal National Mortgage Association (Fannie Mae), Federal Home Loan Mortgage Corporation (Freddie Mac), Federal Home Loan Banks and third-party investors, or are securitized and issued under the Government National Mortgage Association (Ginnie Mae) program. The mortgage servicing operation performs all functions related to servicing first mortgage loans for various investors. Certain loans originated through our joint ventures are serviced by a joint venture partner.

BlackRock is the largest publicly traded investment management firm in the world. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, multi-asset class, alternative and cash management separate accounts and funds. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services globally to a broad base of clients. At March 31, 2010, our share of BlackRock’s earnings was approximately 23%.

Distressed Assets Portfolio includes commercial residential development loans, cross-border leases, consumer brokered home equity loans, retail mortgages, non-prime mortgages, and residential construction loans. These loans require special servicing and management oversight given current market conditions. The majority of these loans are from acquisitions, primarily National City.

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

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


	Three months ended
*In millions* Earnings (Loss)	March 31 2010		December 31 2009			September 30 2009		June 30 2009			March 31 2009
Retail Banking	$	24	$	(25	)	$	50	$	61		$	50
Corporate & Institutional Banking		360		415			309		107			359
Asset Management Group		39		23			35		8			39
Residential Mortgage Banking		82		25			91		92			227
Distressed Assets Portfolio		72		(88	)		14		155			3
Other, including BlackRock (b) (c) (d)		71		753			41		(228	)		(158	)

Earnings from continuing operations before noncontrolling interests	$	648	$	1,103		$	540	$	195		$	520


Revenue
Retail Banking	$	1,360	$	1,379		$	1,434	$	1,467		$	1,441
Corporate & Institutional Banking		1,248		1,377			1,316		1,283			1,290
Asset Management Group		228		218			225		226			250
Residential Mortgage Banking		237		176			292		332			528
Distressed Assets Portfolio		337		221			254		334			344
Other, including BlackRock (b) (c) (d)		353		1,515			332		161			(167	)

Revenue from continuing operations	$	3,763	$	4,886		$	3,853	$	3,803		$	3,686

(a)

Our business information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our business and management structure change. Certain prior period amounts have been reclassified to reflect current methodologies and our current business and management structure. As a result of its pending sale, GIS is no longer a reportable business segment. Amounts are presented on a continuing operations basis and exclude the earnings and revenue attributable to GIS.

(b)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our first quarter 2010 Form 10-Q will include additional information regarding BlackRock.

(c)

Includes earnings and gains or losses related to PNC’s equity interest in BlackRock, integration costs, asset and liability management activities including net securities gains or losses, other than temporary impairment of debt securities and certain trading activities, equity management activities, exited businesses, differences between business segment performance reporting and financial statement reporting under generally accepted accounting principles (GAAP), corporate overhead and intercompany eliminations.

(d)	The $1.076 billion gain ($687 million after-tax) related to BlackRock’s acquisition of BGI was included in this business segment for the fourth quarter of 2009.


	March 31 2010	December 31 2009	September 30 2009	June 30 2009	March 31 2009
Period-end Employees
Full-time employees
Retail Banking	21,522	21,416	21,644	22,102	22,468
Corporate & Institutional Banking	3,760	3,746	3,861	4,038	4,169
Asset Management Group	2,986	2,960	3,067	3,150	3,210
Residential Mortgage Banking	3,340	3,267	3,606	3,693	3,596
Distressed Assets Portfolio	178	175	157	131	110
Other
Operations & Technology	9,284	9,275	9,400	9,350	9,406
Staff Services and Other (e)	9,043	8,922	8,794	8,898	8,899

Total Other	18,327	18,197	18,194	18,248	18,305

Total full-time employees	50,113	49,761	50,529	51,362	51,858

Retail Banking part-time employees	4,798	4,737	4,859	5,199	5,375
Other part-time employees	1,187	1,322	1,520	1,509	1,562

Total part-time employees	5,985	6,059	6,379	6,708	6,937

Total	56,098	55,820	56,908	58,070	58,795

The period-end employee statistics reflect staff directly employed by the respective business and exclude operations, technology and staff services employees.

(e)	Includes employees of GIS.

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (a)


	Three months ended
*Dollars in millions*	March 31 2010 (b) (c)			December 31 2009 (b)			September 30 2009 (b)			June 30 2009			March 31 2009
INCOME STATEMENT
Net interest income	$	871		$	833		$	865		$	903		$	921
Noninterest income
Service charges on deposits		195			229			244			237			220
Brokerage		53			59			63			62			61
Consumer services		209			224			227			227			208
Other		32			34			35			38			31

Total noninterest income		489			546			569			564			520

Total revenue		1,360			1,379			1,434			1,467			1,441
Provision for credit losses		340			409			313			304			304
Noninterest expense		975			1,011			1,040			1,065			1,053

Pretax earnings (loss)		45			(41	)		81			98			84
Income taxes (benefit)		21			(16	)		31			37			34

Earnings (loss)	$	24		$	(25	)	$	50		$	61		$	50

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	26,824		$	27,109		$	27,379		$	27,493		$	27,638
Indirect		3,973			3,998			3,989			4,040			4,120
Education		8,060			6,656			5,742			5,199			4,882
Credit cards		4,079			2,503			2,174			2,162			2,112
Other		1,790			1,789			1,785			1,731			1,860

Total consumer		44,726			42,055			41,069			40,625			40,612
Commercial and commercial real estate		11,487			11,766			12,166			12,550			12,755
Floor plan		1,296			1,136			1,059			1,371			1,495
Residential mortgage		1,800			1,899			1,995			2,114			2,252

Total loans		59,309			56,856			56,289			56,660			57,114
Goodwill and other intangible assets		5,935			5,882			5,894			5,784			5,807
Other assets		2,722			2,697			2,870			2,733			2,699

Total assets	$	67,966		$	65,435		$	65,053		$	65,177		$	65,620

Deposits
Noninterest-bearing demand	$	16,776		$	16,516		$	16,482		$	16,408		$	15,819
Interest-bearing demand		19,212			18,446			18,435			18,639			17,900
Money market		39,699			39,374			39,753			39,608			38,831

Total transaction deposits		75,687			74,336			74,670			74,655			72,550
Savings		6,552			6,577			6,731			6,767			6,360
Certificates of deposit		45,614			48,338			52,189			55,798			56,355

Total deposits		127,853			129,251			133,590			137,220			135,265
Other liabilities		1,671			27			55			39			82
Capital		8,195			8,301			8,523			8,789			8,376

Total liabilities and equity	$	137,719		$	137,579		$	142,168		$	146,048		$	143,723

PERFORMANCE RATIOS
Return on average capital		1	%		(1	) %		2	%		3	%		2	%
Noninterest income to total revenue		36			40			40			38			36
Efficiency		72			73			73			73			73

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

(b)	Information as of and for the three months ended March 31, 2010, December 31, 2009 and September 30, 2009 reflects the impact of the required divestiture of 61 branches that was completed by early September 2009.

(c)	Information as of March 31, 2010 reflects the impact of the consolidation in our financial statements for the securitized portfolio of approximately $1.6 billion of credit card loans as of January 1, 2010.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)


	Three months ended
*Dollars in millions, except as noted*	March 31 2010 (a)			December 31 2009 (a)			September 30 2009 (a)			June 30 2009			March 31 2009
OTHER INFORMATION (b)
Credit-related statistics: (c)
Commercial nonperforming assets	$	324		$	324		$	311		$	246		$	194
Consumer nonperforming assets		276			284			191			156			87

Total nonperforming assets	$	600		$	608		$	502		$	402		$	281

Impaired loans (d)	$	1,013		$	1,056		$	1,161		$	1,266		$	1,269

Commercial lending net charge-offs	$	96		$	173		$	69		$	90		$	83
Credit card lending net charge-offs (on balance sheet)		96			57			53			50			49
Consumer lending (excluding credit card) net charge-offs		108			109			112			106			75

Total net charge-offs	$	300		$	339		$	234		$	246		$	207

Commercial lending annualized net charge-off ratio		3.05	%		5.32	%		2.07	%		2.59	%		2.36	%
Credit card lending annualized net charge-off ratio (on balance sheet)		9.54	%		9.03	%		9.67	%		9.28	%		9.41	%
Consumer lending (excluding credit card) annualized net charge-off ratio		1.03	%		1.04	%		1.09	%		1.05	%		.75	%

Total annualized net charge-off ratio		2.05	%		2.37	%		1.65	%		1.74	%		1.47	%

Home equity portfolio credit statistics:
% of first lien positions (e)		34	%		35	%		35	%		35	%		35	%
Weighted average loan-to-value ratios (e)		73	%		74	%		74	%		74	%		74	%
Weighted average FICO scores (f)		725			727			727			728			727
Annualized net charge-off ratio		.70	%		.90	%		.97	%		.80	%		.34	%
Loans 30 - 89 days past due		.74	%		.78	%		.75	%		.70	%		.73	%
Loans 90 days past due		.85	%		.76	%		.73	%		.72	%		.67	%

Other statistics:
ATMs		6,467			6,473			6,463			6,474			6,402
Branches (g)		2,461			2,513			2,554			2,607			2,586

Customer-related statistics (h):
Retail Banking checking relationships		5,037,000			5,042,000			5,040,000			5,148,000			5,134,000
Retail online banking active customers		2,782,000			2,743,000			2,682,000			2,676,000			2,636,000
Retail online bill payment active customers		826,000			780,000			753,000			744,000			726,000

Brokerage statistics:
Financial consultants (i)		722			704			655			658			658
Full service brokerage offices		41			40			42			42			43
Brokerage account assets (billions)	$	33		$	32		$	30		$	28		$	26

(a)	Information as of and for the three months ended March 31, 2010, December 31, 2009 and September 30, 2009 reflects the impact of the required divestiture of 61 branches that was completed by early September 2009.

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

(c)	Information as of March 31, 2010 reflects the impact of the consolidation in our financial statements for the securitized portfolio of approximately $1.6 billion of credit card loans as of January 1, 2010.

(d)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

(e)	Includes loans from acquired portfolios for which lien position and loan-to-value information is not available.

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

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

(h)	Amounts for 2010 and 2009 include the impact of National City prior to the completion of all application system conversions. These amounts may be refined subsequent to system conversions.

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

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited) (a)


	Three months ended
*Dollars in millions, except as noted*	March 31 2010 (g)			December 31 2009			September 30 2009			June 30 2009			March 31 2009
INCOME STATEMENT
Net interest income	$	877		$	1,009		$	915		$	886		$	1,023
Noninterest income
Corporate service fees		242			235			226			236			218
Other		129			133			175			161			49

Noninterest income		371			368			401			397			267

Total revenue		1,248			1,377			1,316			1,283			1,290
Provision for credit losses		236			283			384			649			287
Noninterest expense		445			444			459			467			430

Pretax earnings		567			650			473			167			573
Income taxes		207			235			164			60			214

Earnings	$	360		$	415		$	309		$	107		$	359

AVERAGE BALANCE SHEET
Loans
Commercial	$	34,024		$	33,481		$	35,785		$	38,835		$	41,709
Commercial real estate		17,961			18,747			18,918			19,667			19,460
Commercial - real estate related		3,128			3,328			3,622			3,884			4,267
Asset-based lending		5,940			6,051			5,918			6,401			7,021
Equipment lease financing		5,318			5,368			5,260			5,380			5,554

Total loans		66,371			66,975			69,503			74,167			78,011
Goodwill and other intangible assets		3,795			3,736			3,704			3,512			3,376
Loans held for sale		1,410			1,534			1,578			1,893			1,714
Other assets		7,940			7,395			6,460			7,332			8,029

Total assets	$	79,516		$	79,640		$	81,245		$	86,904		$	91,130

Deposits
Noninterest-bearing demand	$	22,271		$	23,484		$	20,392		$	18,732		$	17,108
Money market		12,253			10,573			10,714			9,514			7,949
Other		7,610			8,728			8,009			7,501			7,391

Total deposits		42,134			42,785			39,115			35,747			32,448
Other liabilities		10,870			8,408			8,363			9,701			10,024
Capital		7,633			7,916			7,922			7,816			7,690

Total liabilities and equity	$	60,637		$	59,109		$	55,400		$	53,264		$	50,162

PERFORMANCE RATIOS
Return on average capital		19	%		21	%		15	%		5	%		19	%
Noninterest income to total revenue		30			27			30			32			21
Efficiency		36			32			35			37			33

COMMERCIAL MORTGAGE
SERVICING PORTFOLIO (in billions)
Beginning of period	$	287		$	275		$	269		$	269		$	270
Acquisitions/additions		8			19			15			11			5
Repayments/transfers		(13	)		(7	)		(9	)		(11	)		(6	)

End of period	$	282		$	287		$	275		$	269		$	269

OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management	$	298		$	296		$	281		$	284		$	276
Capital Markets	$	164		$	187		$	155		$	148		$	43
Commercial mortgage loans held for sale (c)	$	27		$	67		$	53		$	63		$	22
Commercial mortgage loan servicing (d)		88			66			66			76			72

Total commercial mortgage banking activities	$	115		$	133		$	119		$	139		$	94
Total loans (e)	$	65,076		$	66,206		$	68,352		$	71,077		$	75,886
Credit-related statistics:
Nonperforming assets (e)	$	3,343		$	3,167		$	2,992		$	2,317		$	1,862
Impaired loans (e) (f)	$	1,033		$	1,075		$	1,482		$	1,601		$	1,757
Net charge-offs	$	271		$	341		$	222		$	322		$	167
Net carrying amount of commercial mortgage servicing rights (e)	$	921		$	921		$	897		$	895		$	874

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

(b)	Represents consolidated PNC amounts.

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

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

(e)	Presented as of period end.

(f)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

(g)	Information as of March 31, 2010 reflects the impact of the consolidation in our financial statements of Market Street Funding LLC effective January 1, 2010. Also, includes $1.6 billion of loans, net of eliminations, and $2.8 billion of commercial paper borrowings included in Other liabilities.

Page 16

THE PNC FINANCIAL SERVICES GROUP, INC.

Asset Management Group (Unaudited) (a)


	Three months ended
*Dollars in millions, except as noted*	March 31 2010			December 31 2009			September 30 2009			June 30 2009			March 31 2009
INCOME STATEMENT
Net interest income	$	64		$	67		$	70		$	75		$	96
Noninterest income		164			151			155			151			154

Total revenue		228			218			225			226			250
Provision for credit losses		9			25			9			46			17
Noninterest expense		157			155			162			167			170

Pretax earnings		62			38			54			13			63
Income taxes		23			15			19			5			24

Earnings	$	39		$	23		$	35		$	8		$	39

AVERAGE BALANCE SHEET
Loans
Consumer	$	3,994		$	4,044		$	3,997		$	3,936		$	3,851
Commercial and commercial real estate		1,504			1,520			1,601			1,714			1,761
Residential mortgage		963			1,000			1,046			1,114			1,153

Total loans		6,461			6,564			6,644			6,764			6,765
Goodwill and other intangible assets		415			416			418			390			404
Other assets		241			221			219			273			288

Total assets	$	7,117		$	7,201		$	7,281		$	7,427		$	7,457

Deposits
Noninterest-bearing demand	$	1,228		$	1,126		$	993		$	988		$	1,260
Interest-bearing demand		1,699			1,674			1,544			1,563			1,544
Money market		3,217			3,134			3,154			3,217			3,330

Total transaction deposits		6,144			5,934			5,691			5,768			6,134
Certificates of deposit and other		818			918			1,013			1,088			1,289

Total deposits		6,962			6,852			6,704			6,856			7,423
Other liabilities		119			122			106			104			117
Capital		553			531			612			580			576

Total liabilities and equity	$	7,634		$	7,505		$	7,422		$	7,540		$	8,116

PERFORMANCE RATIOS
Return on average capital		29	%		17	%		23	%		6	%		27	%
Noninterest income to total revenue		72			69			69			67			62
Efficiency		69			71			72			74			68

OTHER INFORMATION
Total nonperforming assets (b)	$	139		$	155		$	129		$	108		$	68
Impaired loans (b) (c)	$	191		$	198		$	206		$	221		$	223
Total net charge-offs	$	4		$	22		$	9		$	21		$	11

ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	96		$	94		$	93		$	88		$	85
Institutional		113			111			124			134			131

Total	$	209		$	205		$	217		$	222		$	216

Asset Type
Equity	$	104		$	100		$	98		$	88		$	79
Fixed income		59			58			56			57			57
Liquidity/Other		46			47			63			77			80

Total	$	209		$	205		$	217		$	222		$	216

Discretionary assets under management

Personal	$	69		$	67		$	66		$	62		$	59
Institutional		36			36			38			36			37

Total	$	105		$	103		$	104		$	98		$	96

Asset Type
Equity	$	51		$	49		$	47		$	42		$	38
Fixed income		35			34			34			32			32
Liquidity/Other		19			20			23			24			26

Total	$	105		$	103		$	104		$	98		$	96

Nondiscretionary assets under administration

Personal	$	27		$	27		$	27		$	26		$	26
Institutional		77			75			86			98			94

Total	$	104		$	102		$	113		$	124		$	120

Asset Type
Equity	$	53		$	51		$	51		$	46		$	41
Fixed income		24			24			22			25			25
Liquidity/Other		27			27			40			53			54

Total	$	104		$	102		$	113		$	124		$	120

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

(b)	As of period-end.

(c)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

(d)	Excludes brokerage account assets.

Page 17

THE PNC FINANCIAL SERVICES GROUP, INC.

Residential Mortgage Banking (Unaudited) (a)


	Three months ended
*Dollars in millions, except as noted*	March 31 2010			December 31 2009			September 30 2009			June 30 2009			March 31 2009
INCOME STATEMENT
Net interest income	$	80		$	71		$	83		$	87		$	91
Noninterest income
Loan servicing revenue
Servicing fees		69			51			70			42			59
Net MSR hedging gains		46			35			60			58			202
Loan sales revenue		39			26			83			151			175
Other		3			(7	)		(4	)		(6	)		1

Total noninterest income		157			105			209			245			437

Total revenue		237			176			292			332			528
Provision for (recoveries of) credit losses		(16	)		(7	)		4			8			(9	)
Noninterest expense		124			142			141			176			173

Pretax earnings		129			41			147			148			364
Income taxes		47			16			56			56			137

Earnings	$	82		$	25		$	91		$	92		$	227

AVERAGE BALANCE SHEET
Portfolio loans	$	2,820		$	2,479		$	2,071		$	1,834		$	1,430
Loans held for sale		974			1,333			2,042			2,766			2,693
Mortgage servicing rights (MSR)		1,264			1,236			1,443			1,343			1,164
Other assets		3,797			3,761			3,483			2,648			1,932

Total assets	$	8,855		$	8,809		$	9,039		$	8,591		$	7,219

Deposits	$	3,602		$	3,628		$	4,076		$	4,741		$	4,101
Borrowings and other liabilities		2,279			3,110			3,811			2,672			2,080
Capital		1,781			1,471			1,411			1,282			1,271

Total liabilities and equity	$	7,662		$	8,209		$	9,298		$	8,695		$	7,452

PERFORMANCE RATIOS
Return on average capital		19	%		7	%		26	%		29	%		72	%
Efficiency		52	%		81	%		48	%		53	%		33	%

OTHER INFORMATION
Servicing portfolio for others (in billions) (b)	$	141		$	145		$	158		$	161		$	168
Fixed rate		89	%		88	%		88	%		87	%		87	%
Adjustable rate/balloon		11	%		12	%		12	%		13	%		13	%
Weighted average interest rate		5.79	%		5.82	%		5.89	%		5.94	%		5.99	%
MSR capitalized value (in billions)	$	1.3		$	1.3		$	1.3		$	1.5		$	1.0
MSR capitalization value (in basis points)		90			91			81			90			62
Weighted average servicing fee (in basis points)		30			30			30			30			30
Loan origination volume (in billions)	$	2.0		$	2.3		$	3.6		$	6.4		$	6.9
Percentage of originations represented by:
Agency and government programs		98	%		96	%		97	%		98	%		97	%
Refinance volume		73	%		59	%		59	%		74	%		83	%
Total nonperforming assets (b)	$	418		$	370		$	343		$	285		$	267
Impaired loans (b) (c)	$	298		$	369		$	412		$	531		$	533

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

(b)	As of period end.

(c)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

Page 18

THE PNC FINANCIAL SERVICES GROUP, INC.

Distressed Assets Portfolio (Unaudited) (a)


	Three months ended
*Dollars in millions, except as noted*	March 31 2010			December 31 2009			September 30 2009			June 30 2009			March 31 2009
INCOME STATEMENT
Net interest income	$	338		$	218		$	235		$	295		$	331
Noninterest income		(1	)		3			19			39			13

Total revenue		337			221			254			334			344
Provision for credit losses		165			314			168			30			259
Noninterest expense		58			49			62			55			80

Pretax earnings (loss)		114			(142	)		24			249			5
Income taxes (benefit)		42			(54	)		10			94			2

Earnings (loss)	$	72		$	(88	)	$	14		$	155		$	3

AVERAGE BALANCE SHEET
Commercial lending:
Commercial	$	115		$	106		$	136		$	182		$	198
Commercial real estate:
Real estate projects		2,404			2,641			3,007			3,331			3,526
Commercial mortgage		80			65			117			112			93
Equipment lease financing		803			800			793			819			858

Total commercial lending		3,402			3,612			4,053			4,444			4,675
Consumer lending:
Consumer:
Home equity lines of credit		4,533			4,615			4,887			5,016			5,297
Home equity installment loans		2,015			2,060			1,877			2,052			2,553
Other consumer		25			23			13			15			10

Total consumer		6,573			6,698			6,777			7,083			7,860
Residential real estate:
Residential mortgage		7,717			7,974			8,744			8,983			9,231
Residential construction		473			600			842			1,401			1,541

Total residential real estate		8,190			8,574			9,586			10,384			10,772

Total consumer lending		14,763			15,272			16,363			17,467			18,632

Total portfolio loans		18,165			18,884			20,416			21,911			23,307
Other assets		1,342			1,633			1,901			1,867			1,509

Total assets	$	19,507		$	20,517		$	22,317		$	23,778		$	24,816

Deposits	$	85		$	29		$	32		$	49		$	45
Other liabilities		55			70			85			109			107
Capital		1,353			1,568			1,540			1,619			1,570

Total liabilities and equity	$	1,493		$	1,667		$	1,657		$	1,777		$	1,722

OTHER INFORMATION
Nonperforming assets (b)	$	1,777		$	1,787		$	1,473		$	1,391		$	933
Impaired loans (b) (c)	$	7,124		$	7,577		$	7,803		$	8,670		$	8,778
Net charge-offs	$	111		$	121		$	175		$	197		$	51
Net charge-offs (for three months ended) as a percentage of period-end portfolio loans (annualized)		2.48	%		2.54	%		3.40	%		3.61	%		.89	%

LOANS (in billions) (b)
Commercial:
Residential development	$	2.6		$	2.6		$	3.2		$	3.6		$	3.5
Cross-border leases		.8			.8			.8			.8			.8
Consumer:
Brokered home equity		6.3			6.4			6.6			6.9			7.1
Retail mortgages		5.1			5.2			5.4			5.8			6.4
Non-prime mortgages		1.7			1.7			1.7			1.9			2.0
Residential construction		1.6			1.8			2.0			2.2			2.4

Total	$	18.1		$	18.5		$	19.7		$	21.2		$	22.2

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

(b)	As of period end.

(c)	Recorded investment of purchased impaired loans related to National City, adjusted to reflect additional loan impairments effective December 31, 2008.

Page 19

THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms

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

Accretable yield - The excess of a loan’s cash flows expected to be collected over the carrying value of the loan. The accretable yield is recognized in interest income over the remaining life of the loan using the constant effective yield method.

Adjusted average total assets - Primarily comprised of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on investment securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

Annualized - Adjusted to reflect a full year of activity.

Assets under management - Assets over which we have sole or shared investment authority for our customers/clients. We do not include these assets on our Consolidated Balance Sheet.

Basis point - One hundredth of a percentage point.

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

Charge-off - Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred 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.

Client-related noninterest income – Total noninterest income included on our Consolidated Income Statement less amounts for net gains (losses) on sales of securities, net other-than-temporary impairments, and other noninterest income.

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

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

Derivatives - Financial contracts whose value is derived from publicly traded securities, interest rates, currency exchange rates or market indices. Derivatives cover a wide assortment of financial contracts, including but not limited to forward contracts, futures, options and swaps.

Duration of equity - An estimate of the rate sensitivity of our economic value of equity. A negative duration of equity is associated with asset sensitivity (i.e., positioned for rising interest rates), while a positive value implies liability sensitivity (i.e., positioned for declining interest rates). For example, if the duration of equity is +1.5 years, the economic value of equity declines by 1.5% for each 100 basis point increase in interest rates.

Earning assets - Assets that generate income, which include: Federal funds sold; resale agreements; trading securities; interest-earning deposits with banks; other short-term investments; loans held for sale; loans; investment securities; and certain other assets.

Economic capital - Represents the amount of resources that a business segment should hold to guard against potentially large losses that could cause insolvency. It is based on a measurement of economic risk, as opposed to risk as defined by regulatory bodies. The economic capital measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with our target credit rating. As such, economic risk serves as a “common currency” of risk that allows us to compare different risks on a similar basis.

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

Page 20

THE PNC FINANCIAL SERVICES GROUP, INC.

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

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

Funds transfer pricing - A management accounting methodology designed to recognize the net interest income effects of sources and uses of funds provided by the assets and liabilities of a business segment. We assign these balances LIBOR-based funding rates at origination that represent the interest cost for us to raise/invest funds with similar maturity and repricing structures.

Futures and forward contracts - Contracts in which the buyer agrees to purchase and the seller agrees to deliver a specific financial instrument at a predetermined price or yield. May be settled either in cash or by delivery of the underlying financial instrument.

GAAP - Accounting principles generally accepted in the United States of America.

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

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

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

Net interest income from loans and deposits - A management accounting assessment, using funds transfer pricing methodology, of the net interest contribution from loans and deposits.

Net interest margin - Annualized taxable-equivalent net interest income divided by average earning assets.

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

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

Noninterest income to total revenue - Noninterest income divided by the sum of net interest income (GAAP basis) and noninterest income.

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

Nonperforming loans - Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, consumer, and residential mortgage customers and construction customers as well as troubled debt restructured loans. Nonperforming loans do not include loans held for sale or foreclosed and other assets. We do not accrue interest income on loans classified as nonperforming.

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

Operating leverage - The period to period 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).

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THE PNC FINANCIAL SERVICES GROUP, INC.

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

Pretax, pre-provision earnings - Total revenue less noninterest expense.

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

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

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

Recovery - Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

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

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

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

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

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

Risk-weighted assets - Computed by the assignment of specific risk-weights (as defined by the Board of Governors of the Federal Reserve System) to assets and off-balance sheet instruments.

Securitization - The process of legally transforming financial assets into securities.

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

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THE PNC FINANCIAL SERVICES GROUP, INC.

Taxable-equivalent interest - The interest income earned on certain assets is completely or partially exempt from Federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all interest-earning assets, we use interest income on a taxable-equivalent basis in calculating average yields and net interest margins by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on other taxable investments. This adjustment is not permitted under GAAP on the Consolidated Income Statement.

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

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

Tier 1 risk-based capital - Total shareholders’ equity, plus trust preferred capital securities, plus certain noncontrolling interests that are held by others; less goodwill and certain other intangible assets (net of eligible deferred taxes relating to taxable and nontaxable combinations), less equity investments in nonfinancial companies less ineligible servicing assets and less net unrealized holding losses on available for sale equity securities. Net unrealized holding gains on available for sale equity securities, net unrealized holding gains (losses) on available for sale debt securities and net unrealized holding gains (losses) on cash flow hedge derivatives are excluded from total shareholders’ equity for Tier 1 risk-based capital purposes.

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

Total equity – Total shareholders’ equity plus noncontrolling interests.

Total risk-based capital - Tier 1 risk-based capital plus qualifying subordinated debt and trust preferred securities, other noncontrolling interest not qualified as Tier 1, eligible gains on available for sale equity securities and the allowance for loan and lease losses, subject to certain limitations.

Total risk-based capital ratio - Total risk-based capital divided by period-end risk-weighted assets.

Transaction deposits - The sum of money market and interest-bearing demand deposits and demand and other noninterest-bearing deposits.

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

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

Yield curve - A graph showing the relationship between the yields on financial instruments or market indices of the same credit quality with different maturities. For example, a “normal” or “positive” yield curve exists when long-term bonds have higher yields than short-term bonds. A “flat” yield curve exists when yields are the same for short-term and long-term bonds. A “steep” yield curve exists when yields on long-term bonds are significantly higher than on short-term bonds. An “inverted” or “negative” yield curve exists when short-term bonds have higher yields than long-term bonds.

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