PNC FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.1 - FINANCIAL SUPPLEMENT (UNAUDITED) FOR FOURTH QUARTER AND FULL YEAR 2012

Attached files

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8-K - FORM 8-K - PNC FINANCIAL SERVICES GROUP, INC.	d464806d8k.htm
EX-99.2 - ELECTRONIC PRESENTATION SLIDES FOR EARNINGS RELEASE CONFERENCE CALL - PNC FINANCIAL SERVICES GROUP, INC.	d464806dex992.htm

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2012

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2012

(UNAUDITED)


	Page
Consolidated Results:

Income Statement		1
Balance Sheet		2
Capital Ratios		2
Average Balance Sheet		3-4
Net Interest Margin		5
Total and Core Net Interest Income		6
Per Share Related Information		7
Selected Income Statement Information		7
Loans, Loans Held for Sale, and Net Unfunded Commitments		8
Allowances for Credit Losses		9
Purchase Accounting Accretion and Valuation of Purchased Impaired Loans		10
Nonperforming Assets and Troubled Debt Restructurings		11-12
Accruing Loans Past Due		13

Business Segment Results:

Descriptions		14
Period End Employees		14
Income and Revenue		15
Retail Banking		16-17
Corporate & Institutional Banking		18
Asset Management Group		19
Residential Mortgage Banking		20
Non-Strategic Assets Portfolio		21
Glossary of Terms		22-25

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 17, 2013. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. This information speaks only as of the particular date or dates included in the schedules. We do not undertake any obligation to, and disclaim any duty to, correct or update any of the information provided in this Financial Supplement. Our future financial performance is subject to risks and uncertainties as described in our United States Securities and Exchange Commission (SEC) filings.

BUSINESS

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

ACQUISITION AND DIVESTITURE ACTIVITY

On March 2, 2012, PNC acquired 100% of the issued and outstanding common stock of RBC Bank (USA), the US retail banking subsidiary of Royal Bank of Canada, with more than 400 branches in North Carolina, Florida, Alabama, Georgia, Virginia, and South Carolina. The transaction added approximately $18 billion of deposits and $15 billion of loans to PNC’s Consolidated Balance Sheet. In addition, we sold the Smartstreet business unit which was acquired by PNC as part of the RBC Bank (USA) acquisition to Union Bank, N.A., resulting in a small gain and release of $46 million of goodwill and $13 million of core deposit intangibles.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Consolidated Income Statement (Unaudited)


	Three months ended															Year ended
In millions, except per share data	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
Interest Income
Loans	$	2,094		$	2,076		$	2,163		$	1,951		$	1,902		$	8,284		$	7,595
Investment securities		478			504			527			526			523			2,035			2,161
Other		99			90			106			120			109			415			438

Total interest income		2,671			2,670			2,796			2,597			2,534			10,734			10,194

Interest Expense
Deposits		97			103			83			103			139			386			668
Borrowed funds		150			168			187			203			196			708			826

Total interest expense		247			271			270			306			335			1,094			1,494

Net interest income		2,424			2,399			2,526			2,291			2,199			9,640			8,700

Noninterest Income
Asset management		302			305			278			284			250			1,169			1,088
Consumer services		294			288			290			264			269			1,136			1,243
Corporate services		349			295			290			232			266			1,166			898
Residential mortgage (a) (b)		—			227			(173	)		230			157			284			713
Service charges on deposits		150			152			144			127			140			573			534
Net gains on sales of securities		45			40			62			57			62			204			249
Net other-than-temporary impairments		(15	)		(24	)		(34	)		(38	)		(44	)		(111	)		(152	)
Other (c)		520			406			240			285			250			1,451			1,053

Total noninterest income		1,645			1,689			1,097			1,441			1,350			5,872			5,626

Total revenue		4,069			4,088			3,623			3,732			3,549			15,512			14,326
Provision For Credit Losses		318			228			256			185			190			987			1,152
Noninterest Expense
Personnel		1,216			1,171			1,119			1,111			1,052			4,617			3,966
Occupancy		226			212			199			190			198			827			738
Equipment		194			185			181			175			177			735			661
Marketing		70			74			67			68			74			279			249
Other (d)		1,123			1,008			1,082			911			1,218			4,124			3,491

Total noninterest expense (e)		2,829			2,650			2,648			2,455			2,719			10,582			9,105

Income before income taxes and noncontrolling interests		922			1,210			719			1,092			640			3,943			4,069
Income taxes		203			285			173			281			147			942			998

Net income		719			925			546			811			493			3,001			3,071

Less: Net income (loss) attributable to noncontrolling interests		1			(14	)		(5	)		6			17			(12	)		15
Preferred stock dividends and discount accretion		54			63			25			39			25			181			58

Net income attributable to common shareholders	$	664		$	876		$	526		$	766		$	451		$	2,832		$	2,998

Earnings Per Common Share
Basic	$	1.26		$	1.66		$	1.00		$	1.45		$	.86		$	5.36		$	5.70
Diluted	$	1.24		$	1.64		$	.98		$	1.44		$	.85		$	5.30		$	5.64

Average Common Shares Outstanding
Basic		526			526			527			526			524			526			524
Diluted		528			529			530			529			526			529			526

Efficiency		70	%		65	%		73	%		66	%		77	%		68	%		64	%
Noninterest income to total revenue		40	%		41	%		30	%		39	%		38	%		38	%		39	%
Effective tax rate (f)		22.0	%		23.6	%		24.1	%		25.7	%		23.0	%		23.9	%		24.5	%

For additional information regarding footnotes (b) through (e) below, refer to Selected Consolidated Income Statement Information on page 7.

(a)	Residential mortgage income for the three months ended December 31, 2012 was less than $.5 million.

(b)	Includes provision for residential mortgage repurchase obligations.

(c)	Includes gains on sales of Visa Class B common shares.

(d)	Includes expenses for residential mortgage foreclosure-related matters, the goodwill impairment charge for the Residential Mortgage Banking segment and noncash charges for unamortized discounts related to redemption of trust preferred securities.

(e)	Includes integration costs.

(f)	The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Consolidated Balance Sheet (Unaudited)


In millions, except par value	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011
Assets
Cash and due from banks (a)	$	5,220		$	4,284		$	4,136		$	4,162		$	4,105
Federal funds sold and resale agreements (b)		1,463			1,724			1,646			1,371			2,205
Trading securities		2,096			2,664			2,121			2,639			2,513
Interest-earning deposits with banks (a)		3,984			2,321			3,995			2,084			1,169
Loans held for sale (b)		3,693			2,737			3,333			2,456			2,936
Investment securities (a)		61,406			62,814			61,937			64,554			60,634
Loans (a) (b)		185,856			181,864			180,425			176,214			159,014
Allowance for loan and lease losses (a)		(4,036	)		(4,039	)		(4,156	)		(4,196	)		(4,347	)

Net loans		181,820			177,825			176,269			172,018			154,667
Goodwill		9,072			9,163			9,158			9,169			8,285
Other intangible assets		1,797			1,778			1,804			2,019			1,859
Equity investments (a) (c)		10,877			10,846			10,617			10,352			10,134
Other (a) (b)		23,679			24,647			24,559			25,059			22,698

Total assets	$	305,107		$	300,803		$	299,575		$	295,883		$	271,205

Liabilities
Deposits
Noninterest-bearing	$	69,980		$	64,484		$	64,476		$	62,463		$	59,048
Interest-bearing		143,162			141,779			142,447			143,664			128,918

Total deposits		213,142			206,263			206,923			206,127			187,966
Borrowed funds
Federal funds purchased and repurchase agreements		3,327			3,877			4,166			4,832			2,984
Federal Home Loan Bank borrowings		9,437			9,942			10,440			8,957			6,967
Bank notes and senior debt		10,429			9,960			10,185			12,065			11,793
Subordinated debt		7,299			6,754			7,593			8,221			8,321
Commercial paper (a)		8,453			10,731			9,469			6,870			4,271
Other (a)		1,962			1,840			1,836			1,594			2,368

Total borrowed funds		40,907			43,104			43,689			42,539			36,704
Allowance for unfunded loan commitments and letters of credit		250			239			224			243			240
Accrued expenses (a)		4,449			4,015			3,428			3,607			4,175
Other (a)		4,594			5,380			5,097			5,131			4,874

Total liabilities		263,342			259,001			259,361			257,647			233,959

Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 538, 538, 537, 537, and 537 shares		2,690			2,689			2,687			2,685			2,683
Capital surplus - preferred stock		3,590			3,559			3,120			1,638			1,637
Capital surplus - common stock and other		12,193			12,149			12,098			12,074			12,072
Retained earnings		20,265			19,813			19,149			18,834			18,253
Accumulated other comprehensive income (loss)		834			991			402			281			(105	)
Common stock held in treasury at cost: 10, 9, 8, 9, and 10 shares		(569	)		(518	)		(451	)		(467	)		(487	)

Total shareholders’ equity		39,003			38,683			37,005			35,045			34,053
Noncontrolling interests		2,762			3,119			3,209			3,191			3,193

Total equity		41,765			41,802			40,214			38,236			37,246

Total liabilities and equity	$	305,107		$	300,803		$	299,575		$	295,883		$	271,205

Capital Ratios
Tier 1 common (e)		9.6	%		9.5	%		9.3	%		9.3	%		10.3	%
Tier 1 risk-based (e)		11.7			11.7			11.4			11.4			12.6
Total risk-based (e)		14.7			14.5			14.2			14.4			15.8
Leverage (e)		10.4			10.4			10.1			10.5			11.1
Common shareholders’ equity to assets		11.6			11.7			11.3			11.3			12.0

(a)	Amounts include consolidated variable interest entities. Our 2012 Form 10-Qs included, and our 2012 Form 10-K will include, additional information regarding these items.

(b)	Amounts include assets for which PNC has elected the fair value option. Our 2012 Form 10-Qs included, and our 2012 Form 10-K 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.

(e)	The ratios as of December 31, 2012 are estimated.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Average Consolidated Balance Sheet (Unaudited) (a)


	Three months ended															Year ended
In millions	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	25,552		$	26,546		$	26,968		$	27,031		$	25,691		$	26,522		$	25,892
Non-agency		6,245			6,490			6,716			6,577			6,859			6,506			7,413
Commercial mortgage-backed		3,674			3,720			3,561			3,774			3,640			3,682			3,461
Asset-backed		5,643			5,525			5,401			4,329			3,832			5,227			3,402
US Treasury and government agencies		2,746			2,516			2,549			3,123			3,376			2,733			4,308
State and municipal		2,034			1,972			1,902			1,770			1,767			1,920			2,002
Other debt		2,860			3,045			3,178			2,996			2,731			3,019			3,350
Corporate stocks and other		346			390			317			347			446			350			428

Total securities available for sale		49,100			50,204			50,592			49,947			48,342			49,959			50,256
Securities held to maturity
Residential mortgage-backed		4,377			4,480			4,259			4,576			4,658			4,423			2,424
Commercial mortgage-backed		3,967			4,180			4,376			4,635			4,794			4,288			4,444
Asset-backed		702			825			874			1,170			1,353			892			1,985
US Treasury and government agencies		229			227			225			223			221			226			87
State and municipal		664			671			671			671			670			670			271
Other		355			357			359			361			363			358			221

Total securities held to maturity		10,294			10,740			10,764			11,636			12,059			10,857			9,432

Total investment securities		59,394			60,944			61,356			61,583			60,401			60,816			59,688
Loans
Commercial		80,876			79,250			77,131			69,286			63,483			76,654			59,437
Commercial real estate		18,678			18,514			18,440			16,818			16,413			18,115			16,767
Equipment lease financing		6,956			6,774			6,586			6,377			6,233			6,674			6,219
Consumer		61,430			60,570			59,832			57,148			55,556			59,752			54,669
Residential real estate		15,257			15,575			15,932			14,927			14,474			15,423			14,924

Total loans		183,197			180,683			177,921			164,556			156,159			176,618			152,016
Loans held for sale		3,025			2,956			3,016			2,910			2,673			2,977			2,768
Federal funds sold and resale agreements		1,290			1,601			1,666			1,821			2,035			1,594			2,297
Other		6,737			6,422			6,173			6,864			7,138			6,549			7,571

Total interest-earning assets		253,643			252,606			250,132			237,734			228,406			248,554			224,340
Noninterest-earning assets:
Allowance for loan and lease losses		(3,987	)		(4,152	)		(4,176	)		(4,314	)		(4,472	)		(4,157	)		(4,656	)
Cash and due from banks		4,126			3,907			3,694			3,777			3,883			3,877			3,565
Other		48,349			47,781			46,501			44,345			42,905			46,751			42,086

Total assets	$	302,131		$	300,142		$	296,151		$	281,542		$	270,722		$	295,025		$	265,335

(a)	Calculated using average daily balances.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

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


	Three months ended										Year ended
In millions	December 31 2012		September 30 2012		June 30 2012		March 31 2012		December 31 2011		December 31 2012		December 31 2011
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	67,997	$	67,628	$	66,902	$	61,162	$	58,897	$	65,933	$	58,765
Demand		36,619		34,733		34,388		31,599		29,338		34,342		27,563
Savings		10,190		10,066		10,008		9,183		8,545		9,863		8,185
Retail certificates of deposit		24,394		25,695		27,373		29,011		30,888		26,609		34,009
Time deposits in foreign offices and other time		2,740		3,230		3,577		3,238		2,869		3,195		2,815

Total interest-bearing deposits		141,940		141,352		142,248		134,193		130,537		139,942		131,337
Borrowed funds
Federal funds purchased and repurchase agreements		4,023		4,659		4,937		4,551		3,714		4,542		4,469
Federal Home Loan Bank borrowings		8,877		10,626		10,238		8,967		6,090		9,678		5,305
Bank notes and senior debt		9,702		9,657		10,618		11,138		11,463		10,275		11,202
Subordinated debt		6,668		6,408		7,293		7,719		8,463		7,019		8,942
Commercial paper		9,069		10,518		8,229		5,684		3,527		8,383		3,234
Other		1,961		1,868		1,809		2,153		2,408		1,947		2,574

Total borrowed funds		40,300		43,736		43,124		40,212		35,665		41,844		35,726

Total interest-bearing liabilities		182,240		185,088		185,372		174,405		166,202		181,786		167,063
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		65,527		62,483		60,478		57,900		55,946		61,610		51,707
Allowance for unfunded loan commitments and letters of credit		239		225		243		240		217		237		203
Accrued expenses and other liabilities		12,237		11,590		10,375		11,186		11,132		11,350		11,040
Equity		41,888		40,756		39,683		37,811		37,225		40,042		35,322

Total liabilities and equity	$	302,131	$	300,142	$	296,151	$	281,542	$	270,722	$	295,025	$	265,335

(a) Calculated using average daily balances. Supplemental Average Balance Sheet Information (Unaudited) Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	141,940	$	141,352	$	142,248	$	134,193	$	130,537	$	139,942	$	131,337
Noninterest-bearing deposits		65,527		62,483		60,478		57,900		55,946		61,610		51,707

Total deposits	$	207,467	$	203,835	$	202,726	$	192,093	$	186,483	$	201,552	$	183,044
Transaction deposits	$	170,143	$	164,844	$	161,768	$	150,661	$	144,181	$	161,885	$	138,035
Common shareholders’ equity	$	35,296	$	34,323	$	33,648	$	32,981	$	32,552	$	34,066	$	31,501


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Details of Net Interest Margin (Unaudited) (a)


	Three months ended															Year ended
	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency		2.94	%		3.03	%		3.17	%		3.14	%		3.11	%		3.07	%		3.45	%
Non-agency		5.39			5.08			5.63			5.38			5.44			5.38			5.31
Commercial mortgage-backed		3.81			4.29			4.41			4.42			4.43			4.24			4.57
Asset-backed		1.93			2.09			1.91			2.24			2.39			2.03			2.47
US Treasury and government agencies		1.76			2.08			2.33			1.80			2.61			2.01			2.65
State and municipal		4.66			4.62			4.63			5.13			4.58			4.74			4.55
Other debt		2.91			2.85			2.56			2.55			2.75			2.72			2.60
Corporate stocks and other		.24			.12			.11			.03			.04
Total securities available for sale		3.19			3.27			3.40			3.38			3.46			3.31			3.63
Securities held to maturity
Residential mortgage-backed		3.34			3.50			3.70			3.58			3.39			3.53			3.42
Commercial mortgage-backed		4.50			4.46			4.56			4.62			4.57			4.55			4.95
Asset-backed		1.76			2.61			1.83			1.68			1.98			1.91			2.17
US Treasury and government agencies		3.82			3.81			3.79			3.79			3.81			3.98			3.45
State and municipal		4.23			4.18			4.20			4.18			4.19			4.18			4.43
Other		2.89			2.82			2.89			2.83			2.88			2.79			3.17
Total securities held to maturity		3.73			3.83			3.90			3.82			3.74			3.82			3.90
Total investment securities		3.28			3.37			3.49			3.47			3.51			3.40			3.67

Loans
Commercial		4.16			4.30			4.75			4.51			4.66			4.50			4.92
Commercial real estate		5.57			5.26			5.78			5.19			5.33			5.55			5.24
Equipment lease financing		4.26			4.45			4.96			4.74			4.84			4.60			4.97
Consumer		4.68			4.63			4.67			4.78			4.81			4.69			4.89
Residential real estate		5.36			5.18			5.44			5.59			5.35			5.39			5.92
Total loans		4.58			4.59			4.90			4.78			4.85			4.75			5.04

Loans held for sale		5.34			4.34			6.00			6.89			5.96			5.64			6.97
Federal funds sold and resale agreements		1.04			1.22			1.45			1.58			1.48			1.38			1.44
Other		3.24			3.27			3.62			3.71			3.45			3.45			2.83
Total yield on interest-earning assets		4.24			4.24			4.51			4.41			4.44			4.38			4.59

Rate on interest-bearing liabilities
Interest-bearing deposits
Money market		.19			.21			.21			.23			.25			.21			.31
Demand		.04			.04			.04			.04			.05			.04			.08
Savings		.09			.09			.10			.10			.16			.09			.18
Retail certificates of deposit		.89			.90			.57			.80			1.16			.79			1.26
Time deposits in foreign offices and other time		.45			.38			.49			.49			.53			.47			.64
Total interest-bearing deposits		.27			.29			.24			.31			.42			.28			.51

Borrowed funds
Federal funds purchased and repurchase agreements		.20			.19			.21			.22			.15			.22			.16
Federal Home Loan Bank borrowings		.70			.69			.74			.80			.93			.74			1.00
Bank notes and senior debt		2.07			2.16			2.30			2.48			2.11			2.30			2.25
Subordinated debt		3.57			4.71			4.77			5.09			4.91			4.56			5.10
Commercial paper		.28			.28			.26			.26			.28			.27			.28
Other		2.78			2.43			2.25			2.05			1.87			2.41			1.90
Total borrowed funds		1.46			1.53			1.72			2.01			2.17			1.69			2.31
Total rate on interest-bearing liabilities		.54			.58			.58			.70			.80			.60			.89

Interest rate spread		3.70			3.66			3.93			3.71			3.64			3.78			3.70
Impact of noninterest-bearing sources		.15			.16			.15			.19			.22			.16			.22

Net interest margin		3.85	%		3.82	%		4.08	%		3.90	%		3.86	%		3.94	%		3.92	%

(a)

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

The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012, and December 31, 2011, were $42 million, $36 million, $35 million, $31 million, and $28 million, respectively. The taxable-equivalent adjustments to net interest income for the year ended December 31, 2012 and December 31, 2011 were $144 million and $104 million, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Total and Core Net Interest Income (Unaudited)

Total and Core Net Interest Income


	Three months ended															Year ended
In millions	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
Core net interest income (a)	$	2,151		$	2,154		$	2,183		$	2,028		$	1,943		$	8,516		$	7,581
Purchase accounting accretion (a)		273			245			343			263			256			1,124			1,119

Total net interest income	$	2,424		$	2,399		$	2,526		$	2,291		$	2,199		$	9,640		$	8,700

(a) We believe that core net interest income and purchase accounting accretion are useful in evaluating the components of net interest income. Details of Net Interest Margin (b)
	Three months ended															Year ended
In millions	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
Average yields/rates
Yield on interest earning assets
Total investment securities		3.28	%		3.37	%		3.49	%		3.47	%		3.51	%		3.40	%		3.67	%
Total loans		4.58			4.59			4.90			4.78			4.85			4.75			5.04
Other		3.56			3.26			3.95			4.17			3.68			3.74			3.48
Total yield on interest earning assets		4.24			4.24			4.51			4.41			4.44			4.38			4.59
Rate on interest-bearing liabilities
Total interest-bearing deposits		.27			.29			.24			.31			.42			.28			.51
Total borrowed funds		1.46			1.53			1.72			2.01			2.17			1.69			2.31
Total rate on interest-bearing liabilities		.54			.58			.58			.70			.80			.60			.89
Interest rate spread		3.70			3.66			3.93			3.71			3.64			3.78			3.70
Impact of noninterest-bearing sources		.15			.16			.15			.19			.22			.16			.22

Net interest margin		3.85	%		3.82	%		4.08	%		3.90	%		3.86	%		3.94	%		3.92	%

(b) See note (a) on page 5. Details of Core Net Interest Margin (c)
	Three months ended															Year ended
In millions	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
Average yields/rates
Yield on interest earning assets
Total investment securities		3.17	%		3.27	%		3.37	%		3.41	%		3.43	%		3.30	%		3.59	%
Total loans		4.02			4.09			4.25			4.32			4.37			4.20			4.52
Other		3.35			3.11			3.73			3.65			3.68			3.46			3.25
Total yield on interest earning assets		3.80			3.85			4.01			4.05			4.09			3.95			4.21
Rate on interest-bearing liabilities
Total interest-bearing deposits		.31			.34			.39			.54			.65			.39			.78
Total borrowed funds		1.23			1.31			1.50			1.76			1.90			1.46			2.03
Total rate on interest-bearing liabilities		.52			.57			.64			.81			.93			.63			1.04
Interest rate spread		3.28			3.28			3.37			3.24			3.16			3.32			3.17
Impact of noninterest-bearing sources		.15			.16			.15			.19			.22			.16			.22

Core net interest margin		3.43			3.44			3.52			3.43			3.38			3.48			3.39
Purchase accounting accretion impact on net interest margin		.42			.38			.56			.47			.48			.46			.53

Net interest margin		3.85	%		3.82	%		4.08	%		3.90	%		3.86	%		3.94	%		3.92	%

(c) We believe that core net interest margin, a non-GAAP measure, is useful as a tool to help evaluate the impact of purchase accounting accretion on net interest margin. The adjustment represents annualized purchase accounting accretion divided by average interest-earning assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Per Share Related Information (Unaudited)


	Three months ended												Year ended
In millions, except per share data	December 31 2012		September 30 2012			June 30 2012			March 31 2012		December 31 2011		December 31 2012			December 31 2011
Basic
Net income	$	719	$	925		$	546		$	811	$	493	$	3,001		$	3,071
Less:
Net income (loss) attributable to noncontrolling interests		1		(14	)		(5	)		6		17		(12	)		15
Preferred stock dividends and discount accretion and redemptions		54		63			25			39		25		181			58
Dividends and undistributed earnings allocated to nonvested restricted shares		4		5			1			4		2		14			12

Net income attributable to basic common shares	$	660	$	871		$	525		$	762	$	449	$	2,818		$	2,986
Basic weighted-average common shares outstanding		526		526			527			526		524		526			524
Basic earnings per common share	$	1.26	$	1.66		$	1.00		$	1.45	$	.86	$	5.36		$	5.70

Diluted
Net income attributable to basic common shares	$	660	$	871		$	525		$	762	$	449	$	2,818		$	2,986
Less: BlackRock common stock equivalents		4		3			4			3		3		14			19

Net income attributable to diluted common shares	$	656	$	868		$	521		$	759	$	446	$	2,804		$	2,967
Basic weighted-average common shares outstanding		526		526			527			526		524		526			524
Dilutive potential common shares		2		3			3			3		2		3			2

Diluted weighted-average common shares outstanding		528		529			530			529		526		529			526
Diluted earnings per common share	$	1.24	$	1.64		$	.98		$	1.44	$	.85	$	5.30		$	5.64

Selected Consolidated Income Statement Information (Unaudited)


	Three months ended										Year ended
In millions, except per share data	December 31 2012		September 30 2012		June 30 2012		March 31 2012		December 31 2011		December 31 2012		December 31 2011
Noninterest Income
Provision for residential mortgage repurchase obligations (Pre-tax)	$	254	$	37	$	438	$	32	$	36	$	761	$	102
Impact on diluted earnings per share (a)		.31		.05		.54		.04		.04		.93		.13
Gain on sale of Visa Class B common shares (Pre-tax)	$	130	$	137							$	267
Impact on diluted earnings per share (a)		.16		.17								.33
Noninterest Expense
Goodwill impairment charge for
Residential Mortgage Banking segment (Pre-tax)	$	45									$	45
Impact on diluted earnings per share (a)		.08										.08
Expenses for residential mortgage foreclosure-related matters (Pre-tax)	$	91	$	53	$	43	$	38	$	240	$	225	$	324
Impact on diluted earnings per share (a)		.11		.06		.05		.05		.30		.28		.40
Noncash charges for unamortized discounts related to redemption of trust preferred securities (Pre-tax)	$	70	$	95	$	130			$	198	$	295	$	198
Impact on diluted earnings per share (a)		.09		.12		.16				.24		.36		.24
Integration costs (Pre-tax)	$	35	$	35	$	52	$	145	$	28	$	267	$	42
Impact on diluted earnings per share (a)		.04		.04		.06		.18		.04		.33		.05
Income Taxes
Benefit related to reversal of deferred tax liabilities (b)													$	54
Impact on diluted earnings per share (a)														.07

(a)	In calculating impact on diluted earnings per share in the table above, after-tax amounts for the income statement items were calculated using a statutory federal income tax rate of 35%, excluding the goodwill impairment charge which was considered nondeductible for income tax purposes.

(b)	Represents tax benefit recognized within Income taxes on our Consolidated Income Statement.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Loans (Unaudited)


In millions	December 31 2012		September 30 2012		June 30 2012		March 31 2012		December 31 2011
Commercial
Retail/wholesale trade	$	13,801	$	13,381	$	13,434	$	12,983	$	11,539
Manufacturing		13,856		13,498		13,442		12,684		11,453
Service providers		12,095		11,822		11,875		11,215		9,717
Real estate related (a)		10,616		10,208		10,051		10,091		8,488
Financial services		9,026		9,136		9,397		8,273		6,646
Health care		7,267		6,652		6,240		5,695		5,068
Other industries		16,379		14,971		14,462		14,574		12,783

Total commercial		83,040		79,668		78,901		75,515		65,694

Commercial real estate
Real estate projects		12,347		12,801		12,837		12,589		10,640
Commercial mortgage		6,308		5,808		5,643		5,945		5,564

Total commercial real estate		18,655		18,609		18,480		18,534		16,204

Equipment lease financing		7,247		6,923		6,764		6,594		6,416

Total commercial lending		108,942		105,200		104,145		100,643		88,314

Consumer
Home equity
Lines of credit		23,576		24,007		24,360		24,668		22,491
Installment		12,344		11,871		11,478		11,076		10,598
Credit card		4,303		4,135		4,123		4,089		3,976
Other consumer
Education		8,238		8,415		8,807		9,246		9,582
Automobile		8,708		8,328		7,166		5,794		5,181
Other		4,505		4,525		4,523		4,486		4,403

Total consumer		61,674		61,281		60,457		59,359		56,231

Residential real estate
Residential mortgage		14,430		14,505		14,927		15,287		13,885
Residential construction		810		878		896		925		584

Total residential real estate		15,240		15,383		15,823		16,212		14,469

Total consumer lending		76,914		76,664		76,280		75,571		70,700

Total loans (b)	$	185,856	$	181,864	$	180,425	$	176,214	$	159,014

(a) Includes loans to customers in the real estate and construction industries.
(b) Includes purchased impaired loans:	$	7,406	$	7,749	$	8,083	$	8,421	$	6,667
Details of Loans Held for Sale (Unaudited)
In millions	December 31 2012		September 30 2012		June 30 2012		March 31 2012		December 31 2011
Commercial mortgage	$	1,392	$	1,183	$	1,021	$	1,014	$	1,294
Residential mortgage		2,220		1,477		1,939		1,387		1,522
Other		81		77		373		55		120

Total	$	3,693	$	2,737	$	3,333	$	2,456	$	2,936

Net Unfunded Commitments (Unaudited)
In millions	December 31 2012		September 30 2012		June 30 2012		March 31 2012		December 31 2011
Net unfunded commitments	$	120,592	$	118,285	$	113,636	$	112,454	$	103,271


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

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

Change in Allowance for Loan and Lease Losses


Three months ended - in millions	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011
Beginning balance	$	4,039		$	4,156		$	4,196		$	4,347		$	4,507
Charge-offs:
Commercial		(126	)		(114	)		(123	)		(111	)		(143	)
Commercial real estate		(72	)		(83	)		(75	)		(84	)		(90	)
Equipment lease financing		(4	)		(2	)		(5	)		(5	)		(7	)
Home equity (a)		(141	)		(167	)		(121	)		(131	)		(109	)
Residential real estate (a)		(18	)		(25	)		(37	)		(30	)		(32	)
Credit card (a)		(43	)		(47	)		(55	)		(55	)		(50	)
Other consumer (a)		(56	)		(43	)		(46	)		(51	)		(51	)

Total charge-offs (b)		(460	)		(481	)		(462	)		(467	)		(482	)
Recoveries:
Commercial		77			76			75			72			76
Commercial real estate		29			34			29			23			40
Equipment lease financing		8			7			6			9			13
Home equity		15			16			17			13			11
Residential real estate					(1	)		1			(1	)		1
Credit card		9			6			6			5			5
Other consumer		12			12			13			13			9

Total recoveries		150			150			147			134			155
Net (charge-offs) recoveries:
Commercial		(49	)		(38	)		(48	)		(39	)		(67	)
Commercial real estate		(43	)		(49	)		(46	)		(61	)		(50	)
Equipment lease financing		4			5			1			4			6
Home equity		(126	)		(151	)		(104	)		(118	)		(98	)
Residential real estate		(18	)		(26	)		(36	)		(31	)		(31	)
Credit card		(34	)		(41	)		(49	)		(50	)		(45	)
Other consumer		(44	)		(31	)		(33	)		(38	)		(42	)

Total net charge-offs		(310	)		(331	)		(315	)		(333	)		(327	)
Provision for credit losses		318			228			256			185			190
Other					1
Net change in allowance for unfunded loan commitments and letters of credit		(11	)		(15	)		19			(3	)		(23	)

Ending balance	$	4,036		$	4,039		$	4,156		$	4,196		$	4,347


Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		.67	%		.73	%		.71	%		.81	%		.83	%
Allowance for loan and lease losses to total loans		2.17			2.22			2.30			2.38			2.73
Commercial lending net charge-offs	$	(88	)	$	(82	)	$	(93	)	$	(96	)	$	(111	)
Consumer lending net charge-offs		(222	)		(249	)		(222	)		(237	)		(216	)

Total net charge-offs	$	(310	)	$	(331	)	$	(315	)	$	(333	)	$	(327	)
Net charge-offs to average loans
Commercial lending		.33	%		.31	%		.37	%		.42	%		.51	%
Consumer lending		1.15			1.30			1.18			1.32			1.22

(a)

Pursuant to regulatory guidance issued in the third quarter of 2012, additional consumer charge-offs of $45.2 million and $82.9 million have been taken as of December 31, 2012 and September 30, 2012, respectively, related to changes in treatment of certain loans where borrowers have been discharged from personal liability under bankruptcy protection where no formal reaffirmation of the loan obligation was provided by the borrower. Such loans have been classified as troubled debt restructurings (TDRs) and have been measured at fair value of the collateral less costs to sell.

(b)

Pursuant to regulatory guidance, the Company will adopt a policy in the first quarter of 2013, subsequent to operationalizing related procedures, to charge-off a portion of certain second-lien consumer loans (residential mortgage and home equity lines of credit) where the first lien is delinquent. If this policy had been in effect as of December 31, 2012 there would have been an estimated cumulative charge-off of approximately $125 million. The risk of loss associated with these loans has been considered in the determination of our Allowance for Loan and Lease Losses (ALLL) at December 31, 2012.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


Three months ended - in millions	December 31 2012		September 30 2012		June 30 2012			March 31 2012		December 31 2011
Beginning balance	$	239	$	224	$	243		$	240	$	217
Net change in allowance for unfunded loan commitments and letters of credit		11		15		(19	)		3		23

Ending balance	$	250	$	239	$	224		$	243	$	240


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

Purchase Accounting Accretion and Valuation of Purchased Impaired Loans (Unaudited)

Accretion - Purchased Impaired Loans


	Three months ended									Year ended
In millions	December 31 2012 (a)			September 30 2012 (a)			December 31 2011 (b)			December 31 2012 (a)			December 31 2011 (b)
Impaired loans
Scheduled accretion	$	160		$	175		$	154		$	671		$	666
Reversal of contractual interest on impaired loans		(93	)		(103	)		(102	)		(404	)		(395	)

Scheduled accretion net of contractual interest		67			72			52			267			271
Excess cash recoveries		45			21			61			157			254

Total impaired loans	$	112		$	93		$	113		$	424		$	525

(a)	Represents National City and RBC Bank (USA) acquisitions.

(b)	Represents National City acquisition.

Accretable Net Interest - Purchased Impaired Loans


In millions
October 1, 2012	$	2,264		January 1, 2012	$	2,109		January 1, 2011	$	2,185
				Addition due to RBC (USA) acquisition on March 2, 2012		587
Accretion		(160	)	Accretion		(671	)	Accretion		(666	)
Excess cash recoveries		(45	)	Excess cash recoveries		(157	)	Excess cash recoveries		(254	)
Net reclassifications to accretable from non-accretable and other activity		107		Net reclassifications to accretable from non-accretable and other activity		298		Net reclassifications to accretable from non-accretable and other activity		844

December 31, 2012 (a)	$	2,166		December 31, 2012	$	2,166		December 31, 2011	$	2,109

(a)	As of December 31, 2012, we estimate that the reversal of contractual interest on purchased impaired loans will total approximately $1.2 billion in future periods.

This will offset the total net accretable interest in future interest income of $2.2 billion on purchased impaired loans.

Valuation of Purchased Impaired Loans


	December 31, 2012 (a)						September 30, 2012 (a)						December 31, 2011 (b)
Dollars in millions	Balance			Net Investment			Balance			Net Investment			Balance			Net Investment
Commercial and commercial real estate loans:
Unpaid principal balance	$	1,680					$	1,937					$	988
Purchased impaired mark		(431	)					(535	)					(136	)

Recorded investment		1,249						1,402						852
Allowance for loan losses		(239	)					(229	)					(229	)

Net investment		1,010			60	%		1,173			61	%		623			63	%

Consumer and residential mortgage loans:
Unpaid principal balance		6,639						6,976						6,533
Purchased impaired mark		(482	)					(629	)					(718	)

Recorded investment		6,157						6,347						5,815
Allowance for loan losses		(858	)					(839	)					(769	)

Net investment		5,299			80	%		5,508			79	%		5,046			77	%

Total purchased impaired loans:
Unpaid principal balance		8,319						8,913						7,521
Purchased impaired mark		(913	)					(1,164	)					(854	)

Recorded investment		7,406						7,749						6,667
Allowance for loan losses		(1,097	)					(1,068	)					(998	)

Net investment	$	6,309			76	%	$	6,681			75	%	$	5,669			75	%

(a)	Represents National City and RBC Bank (USA) acquisitions.

(b)	Represents National City acquisition.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


In millions	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011
Nonperforming loans, including TDRs (a)
Commercial lending
Commercial
Retail/wholesale trade	$	61		$	88		$	110		$	108		$	109
Manufacturing		73			104			141			107			117
Service providers		124			144			145			149			147
Real estate related (b)		178			236			214			232			252
Financial services		9			13			15			20			36
Health care		25			26			22			23			29
Other industries		120			138			144			200			209

Total commercial		590			749			791			839			899

Commercial real estate
Real estate projects		654			802			924			977			1,051
Commercial mortgage		153			198			218			274			294

Total commercial real estate		807			1,000			1,142			1,251			1,345

Equipment lease financing		13			15			19			21			22

Total commercial lending		1,410			1,764			1,952			2,111			2,266

Consumer lending (c)
Home equity (d)		951			818			722			685			529
Residential real estate
Residential mortgage (e)		824			766			707			684			685
Residential construction		21			24			32			44			41
Credit card (f)		5			5			6			12			8
Other consumer		43			37			39			45			31

Total consumer lending (g)		1,844			1,650			1,506			1,470			1,294

Total nonperforming loans (h)		3,254			3,414			3,458			3,581			3,560

OREO and foreclosed assets
Other real estate owned (OREO) (i)		507			578			670			749			561
Foreclosed and other assets		33			29			48			31			35

Total OREO and foreclosed assets		540			607			718			780			596

Total nonperforming assets	$	3,794		$	4,021		$	4,176		$	4,361		$	4,156

Nonperforming loans to total loans		1.75	%		1.88	%		1.92	%		2.03	%		2.24	%
Nonperforming assets to total loans, OREO and foreclosed assets		2.04			2.20			2.31			2.46			2.60
Nonperforming assets to total assets		1.24			1.34			1.39			1.47			1.53
Allowance for loan and lease losses to nonperforming loans (h) (j)		124			118			120			117			122

(a)	See analysis of troubled debt restructurings (TDRs) on page 12.

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

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

(d)	In the first quarter of 2012, we adopted a policy stating that Home equity loans past due 90 days or more would be placed on nonaccrual status. Prior policy required that these loans be past due 180 days before being placed on nonaccrual status.

(e)	Nonperforming residential mortgage excludes loans of $69 million, $61 million, $55 million, $55 million, and $61 million accounted for under the fair value option as of December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively.

(f)

Effective in the second quarter of 2011, the commercial nonaccrual policy was applied to certain small business credit card balances. This change resulted in loans being placed on nonaccrual status when they become 90 days or more past due. We continue to charge off these loans at 180 days past due.

(g)

Pursuant to regulatory guidance issued in the third quarter of 2012, nonperforming consumer loans, primarily home equity and residential mortgage, increased $199 million and $112 million in the fourth and third quarters of 2012, respectively, related to changes in treatment of certain loans classified as TDRs, net of charge-offs, resulting from bankruptcy where no formal reaffirmation was provided by the borrower and therefore a concession has been granted based upon discharge from personal liability. Charge-offs have been taken where the fair value less costs to sell the collateral was less than the recorded investment of the loan and were $45.2 million and $82.9 million, respectively. As of December 31, 2012, there were $285.5 million of these loans, of which 76% were current.

(h)	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.

(i)

OREO excludes $380 million, $363 million, $262 million, $252 million, and $280 million at December 31, 2012, September 30, 2012, June 30, 2012, March 31, 2012 and December 31, 2011, respectively, related to residential real estate that was acquired by us upon foreclosure of serviced loans because they are insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).

(j)	The allowance for loan and lease losses includes impairment reserves attributable to purchased impaired loans.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Details of Nonperforming Assets and Troubled Debt Restructurings (Unaudited)

Change in Nonperforming Assets


	October 1, 2012 -			July 1, 2012 -			April 1, 2012 -			January 1, 2012 -			October 1, 2011 -
In millions	December 31, 2012			September 30, 2012			June 30, 2012			March 31, 2012			December 31, 2011
Beginning balance	$	4,021		$	4,176		$	4,361		$	4,156		$	4,298
New nonperforming assets		804			861			797			1,186			854
Charge-offs and valuation adjustments		(297	)		(392	)		(293	)		(236	)		(221	)
Principal activity, including paydowns and payoffs		(532	)		(438	)		(428	)		(414	)		(506	)
Asset sales and transfers to loans held for sale		(134	)		(162	)		(168	)		(146	)		(152	)
Returned to performing status		(68	)		(24	)		(93	)		(185	)		(117	)

Ending balance	$	3,794		$	4,021		$	4,176		$	4,361		$	4,156

Largest Individual Nonperforming Assets at December 31, 2012 (a)


In millions
Ranking	Outstandings		Industry
1	$	38	Real Estate, Rental and Leasing
2		34	Real Estate, Rental and Leasing
3		17	Real Estate, Rental and Leasing
4		14	Utilities
5		14	Real Estate, Rental and Leasing
6		12	Other Real Estate Owned
7		12	Real Estate, Rental and Leasing
8		12	Construction
9		12	Real Estate, Rental and Leasing
10		11	Residential Mortgage

Total	$	176

As a percent of total nonperforming assets 5%

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

Summary of Troubled Debt Restructurings


In millions	December 31 2012		September 30 2012		June 30 2012		March 31 2012		December 31 2011
Total commercial lending	$	541	$	556	$	483	$	412	$	405
Total consumer lending (a)		2,318		2,019		1,836		1,821		1,798

Total TDRs	$	2,859	$	2,575	$	2,319	$	2,233	$	2,203

Nonperforming	$	1,589	$	1,383	$	1,189	$	1,095	$	1,141
Accruing (b)		1,037		950		878		865		771
Credit card (c)		233		242		252		273		291

Total TDRs	$	2,859	$	2,575	$	2,319	$	2,233	$	2,203

Loans whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties are considered troubled debt restructurings (TDRs). TDRs typically result from our loss mitigation activities and include rate reductions, principal forgiveness, postponement/reduction of scheduled amortization, and extensions, which are intended to minimize economic loss and to avoid foreclosure or repossession of collateral. Certain consumer government insured or guaranteed loans which were evaluated for TDR consideration, loans held for sale, loans accounted for under the fair value option, and pooled purchased impaired loans are not classified as TDRs.

(a)

Pursuant to regulatory guidance issued in the third quarter of 2012, additional troubled debt restructurings related to changes in treatment of certain loans of $245.7 million and $154.8 million in the fourth and third quarters of 2012, respectively, net of charge-offs, resulting from bankruptcy where no formal reaffirmation was provided by the borrower and therefore a concession has been granted based upon discharge from personal liability were added to the consumer lending population. The additional TDR population increased nonperforming loans by $199 million and $112 million, respectively. Charge-offs have been taken where the fair value less costs to sell the collateral was less than the recorded investment of the loan and were $45.2 million and $82.9 million, respectively. As of December 31, 2012, there were $285.5 million of these loans, of which 76% were current.

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

(c)

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Accruing Loans Past Due (Unaudited)

Accruing Loans Past Due 30 to 59 Days (a)


	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions	2012		2012		2012		2012		2011		2012			2012			2012			2012			2011
Commercial	$	115	$	141	$	130	$	195	$	122		.14	%		.18	%		.16	%		.26	%		.19	%
Commercial real estate		100		91		123		144		96		.54			.49			.67			.78			.59
Equipment lease financing		17		8		5		25		22		.23			.12			.07			.38			.34
Home equity (b)		117		130		124		127		173		.33			.36			.35			.36			.52
Residential real estate
Non government insured (c)		151		147		148		198		180		.99			.96			.94			1.22			1.24
Government insured		127		127		123		122		122		.83			.80			.78			.75			.84
Credit card		34		31		33		34		38		.79			.75			.80			.83			.96
Other consumer
Non government insured		65		54		43		50		58		.30			.25			.21			.26			.30
Government insured		193		154		164		171		207		.90			.72			.80			.88			1.08

Total	$	919	$	883	$	893	$	1,066	$	1,018		.49			.49			.49			.60			.64


Accruing Loans Past Due 60 to 89 Days (a)

	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions	2012		2012		2012		2012		2011		2012			2012			2012			2012			2011
Commercial	$	55	$	92	$	65	$	53	$	47		.07	%		.12	%		.08	%		.07	%		.07	%
Commercial real estate		57		66		105		44		35		.31			.35			.57			.24			.22
Equipment lease financing		1		5		2		2		5		.01			.07			.03			.03			.08
Home equity (b)		58		69		68		79		114		.16			.19			.19			.22			.34
Residential real estate
Non government insured (c)		49		52		52		56		72		.32			.34			.33			.35			.50
Government insured		97		94		91		100		104		.64			.59			.58			.62			.72
Credit card		23		20		22		24		25		.53			.48			.53			.59			.63
Other consumer
Non government insured		21		23		16		20		21		.10			.11			.08			.10			.11
Government insured		110		121		113		98		124		.51			.57			.55			.50			.65

Total	$	471	$	542	$	534	$	476	$	547		.25			.30			.30			.27			.34


Accruing Loans Past Due 90 Days or More (a)

	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31			Sept. 30			Jun. 30			Mar. 31			Dec. 31
Dollars in millions	2012		2012		2012		2012		2011		2012			2012			2012			2012			2011
Commercial	$	42	$	41	$	34	$	28	$	49		.05	%		.05	%		.04	%		.04	%		.07	%
Commercial real estate		15		36		16		5		6		.08			.19			.09			.03			.04
Equipment lease financing		2		1		1		5				.03			.01			.01			.08
Home equity (b)(d)										221														.67
Residential real estate
Non government insured (c)		46		97		104		116		152		.30			.63			.66			.72			1.05
Government insured		1,855		1,896		1,925		2,012		2,129		12.17			11.98			12.17			12.41			14.71
Credit card		36		32		38		47		48		.84			.77			.92			1.15			1.21
Other consumer
Non government insured		18		18		17		21		23		.08			.08			.08			.11			.12
Government insured		337		335		348		351		345		1.57			1.58			1.70			1.80			1.80

Total	$	2,351	$	2,456	$	2,483	$	2,585	$	2,973		1.26			1.35			1.38			1.47			1.87

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

(b)	The Home equity amounts as of March 31, 2012 were reduced by $47 million and $24 million for the Accruing Loans Past Due 30 to 59 Days and 60 to 89 Days respectively, to correct for immaterial amounts. Prior periods have not been adjusted.

(c)	The Residential real estate amounts as of March 31, 2012 were reduced by $24 million, $17 million and $24 million for the Accruing Loans Past Due 30 to 59 Days, 60 to 89 Days and 90 Days or More respectively, to correct for immaterial amounts. Prior periods have not been adjusted.

(d)	In the first quarter of 2012, we adopted a policy stating that Home equity loans past due 90 days or more would be placed on nonaccrual status. Prior policy required that these loans be past due 180 days before being placed on nonaccrual status.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

Business Segment Descriptions (Unaudited)

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

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

Asset Management Group includes personal wealth management for high net worth and ultra high net worth clients and institutional asset management. Wealth management products and services include financial and retirement 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 administration services. The institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments, primarily located in our geographic footprint.

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

Non-Strategic Assets Portfolio (formerly, Distressed Assets Portfolio) includes a consumer portfolio of mainly residential mortgage and brokered home equity loans and a small commercial loan and lease portfolio. We obtained a significant portion of these non-strategic assets through acquisitions of other companies.

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. BlackRock provides diversified investment management services to institutional clients, intermediary and individual investors through various investment vehicles. Investment management services primarily consist of the management of equity, fixed income, multi-asset class, alternative investment and cash management products. BlackRock offers its investment products in a variety of vehicles, including open-end and closed-end mutual funds, iShares^® exchange-traded funds (“ETFs”), collective investment trusts and separate accounts. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services to a broad base of clients. Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments (including long-term portfolio liquidation assignments), risk management and strategic planning and execution. At December 31, 2012, our economic interest in BlackRock was 22%.

Period End Employees


	December 31		September 30		June 30		March 31		December 31
	2012		2012		2012		2012		2011
Full-time employees
Retail Banking		23,331		23,403		23,388		23,583		21,056
Other full-time employees (a)		27,616		27,512		27,060		26,863		24,884

Total full-time employees		50,947		50,915		50,448		50,446		45,940

Part-time employees
Retail Banking		4,563		4,740		4,970		5,265		5,083
Other part-time employees (a)		775		879		1,215		894		868

Total part-time employees		5,338		5,619		6,185		6,159		5,951

Total (b)		56,285		56,534		56,633		56,605		51,891

(a)	Includes period end employees for all businesses other than Retail Banking and includes operations, technology and staff services employees other than staff directly employed by Retail Banking.

(b)	The increase in the total number of employees at March 31, 2012 is primarily driven by the acquisition of RBC Bank (USA) during the first quarter of 2012.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

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


	Three months ended													Year ended
In millions	December 31 2012			September 30 2012		June 30 2012			March 31 2012		December 31 2011			December 31 2012			December 31 2011
Income (Loss)
Retail Banking (c)	$	121		$	192	$	136		$	147	$	62		$	596		$	371
Corporate & Institutional Banking		649			607		577			495		597			2,328			1,940
Asset Management Group		34			37		38			36		25			145			168
Residential Mortgage Banking (d)		(192	)		36		(213	)		61		(61	)		(308	)		89
Non-Strategic Assets Portfolio		59			40		67			71		(2	)		237			200
Other, including BlackRock (b) (e) (f)		48			13		(59	)		1		(128	)		3			303

Net income (g)	$	719		$	925	$	546		$	811	$	493		$	3,001		$	3,071

Revenue
Retail Banking (c)	$	1,677		$	1,664	$	1,551		$	1,436	$	1,383		$	6,328		$	5,579
Corporate & Institutional Banking		1,576			1,416		1,439			1,266		1,306			5,697			4,775
Asset Management Group		247			243		240			243		234			973			929
Residential Mortgage Banking (d)		58			284		(109	)		293		220			526			952
Non-Strategic Assets Portfolio		218			204		223			198		207			843			960
Other, including BlackRock (b) (e)		293			277		279			296		199			1,145			1,131

Total revenue	$	4,069		$	4,088	$	3,623		$	3,732	$	3,549		$	15,512		$	14,326

(a)

Our business information is presented based on our internal management reporting practices. We periodically refine our internal methodologies as management reporting practices are enhanced. During the second quarter of 2012, enhancements were made to the funds transfer pricing methodology. Retrospective application of our new funds transfer pricing methodology has been made to the prior period reportable business segment results and disclosures to create comparability to the current period presentation, which we believe is more meaningful to readers of our financial statements. During the third quarter of 2012, enhancements were made to certain assumptions used to estimate our total ALLL and provision. The estimated impact as of the beginning of the third quarter 2012 was approximately an increase of $41 million and a decrease of $55 million to the provision for credit losses of Retail Banking and Corporate & Institutional Banking, respectively.

(b)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our 2012 Form 10-K will include additional information regarding BlackRock.

(c)	Includes gains on sales of a portion of Visa Class B common shares in the third and fourth quarters of 2012. For more information, refer to Selected Consolidated Income Statement Information on page 7.

(d)	Includes provisions for residential mortgage repurchase obligations. For more information, refer to Selected Consolidated Income Statement Information on page 7.

(e)

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

(f)	Includes amounts for integration costs and noncash charges for unamortized discounts related to redemption of trust preferred securities. For more information, refer to Selected Consolidated Income Statement Information on page 7.

(g)

Includes expenses for residential mortgage foreclosure-related matters. For 2011, these expenses have been allocated among the following: Residential Mortgage Banking, Non-Strategic Assets Portfolio and Other. For 2012, these expenses were only allocated to Residential Mortgage Banking. For more information, refer to Selected Consolidated Income Statement Information on page 7.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Retail Banking (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
INCOME STATEMENT
Net interest income	$	1,081		$	1,076		$	1,114		$	1,045		$	972		$	4,316		$	3,806
Noninterest income
Service charges on deposits		143			146			137			121			135			547			510
Brokerage		48			47			49			45			48			189			201
Consumer services		220			214			213			191			195			838			927
Other		185			181			38			34			33			438			135

Total noninterest income		596			588			437			391			411			2,012			1,773

Total revenue		1,677			1,664			1,551			1,436			1,383			6,328			5,579
Provision for credit losses		280			220			165			135			229			800			891
Noninterest expense		1,206			1,140			1,171			1,069			1,056			4,586			4,103

Pretax earnings		191			304			215			232			98			942			585
Income taxes		70			112			79			85			36			346			214

Earnings	$	121		$	192		$	136		$	147		$	62		$	596		$	371

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	28,920		$	28,881		$	28,761		$	26,759		$	25,890		$	28,321		$	25,972
Indirect auto		6,718			5,654			5,042			4,439			3,878			5,467			3,094
Indirect other		1,063			1,133			1,211			1,292			1,368			1,174			1,491
Education		8,370			8,611			9,100			9,440			9,302			8,878			9,103
Credit cards		4,138			4,108			4,075			3,928			3,805			4,063			3,738
Other		2,145			2,068			2,004			1,888			1,824			2,039			1,750

Total consumer		51,354			50,455			50,193			47,746			46,067			49,942			45,148
Commercial and commercial real estate		11,266			11,360			11,445			10,682			10,369			11,198			10,567
Floor plan		1,915			1,769			1,803			1,663			1,452			1,788			1,450
Residential mortgage		862			918			972			1,031			1,092			946			1,180

Total loans		65,397			64,502			64,413			61,122			58,980			63,874			58,345
Goodwill and other intangible assets		6,174			6,199			6,228			5,888			5,735			6,123			5,751
Other assets		2,565			2,589			2,452			2,699			2,455			2,576			2,352

Total assets	$	74,136		$	73,290		$	73,093		$	69,709		$	67,170		$	72,573		$	66,448

Deposits
Noninterest-bearing demand	$	20,900		$	20,660		$	20,381		$	18,764		$	18,105		$	20,179		$	18,183
Interest-bearing demand		29,526			28,506			28,265			25,707			23,583			28,007			22,196
Money market		47,859			47,557			47,271			43,601			41,638			46,578			41,002

Total transaction deposits		98,285			96,723			95,917			88,072			83,326			94,764			81,381
Savings		10,068			9,954			9,900			9,077			8,450			9,751			8,098
Certificates of deposit		23,531			24,746			26,468			28,150			29,998			25,715			33,006

Total deposits		131,884			131,423			132,285			125,299			121,774			130,230			122,485
Other liabilities		285			255			190			629			758			340			855
Capital		9,051			9,034			8,455			8,328			8,152			8,747			8,168

Total liabilities and equity	$	141,220		$	140,712		$	140,930		$	134,256		$	130,684		$	139,317		$	131,508

PERFORMANCE RATIOS
Return on average capital		5	%		8	%		6	%		7	%		3	%		7	%		5	%
Return on average assets		.65			1.04			.75			.85			.37			.82			.56
Noninterest income to total revenue		36			35			28			27			30			32			32
Efficiency		72			69			75			74			76			72			74

(a)	See note (a) on page 15.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

Retail Banking (Unaudited) (Continued)


	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
OTHER INFORMATION (a)								.
Credit-related statistics:
Commercial nonperforming assets	$	245		$	266		$	275		$	315		$	336
Consumer nonperforming assets		902			799			685			650			513

Total nonperforming assets	$	1,147		$	1,065		$	960		$	965		$	849

Purchased impaired loans (b)	$	819		$	852		$	886		$	903		$	757

Commercial lending net charge-offs	$	34		$	19		$	38		$	28		$	48		$	119		$	219
Credit card lending net charge-offs		35			40			49			50			44			174			211
Consumer lending (excluding credit card) net charge-offs		148			160			100			113			103			521			427

Total net charge-offs	$	217		$	219		$	187		$	191		$	195		$	814		$	857

Commercial lending annualized net charge-off ratio		1.03	%		.58	%		1.15	%		.91	%		1.61	%		.92	%		1.82	%
Credit card lending annualized net charge-off ratio		3.36	%		3.87	%		4.84	%		5.12	%		4.59	%		4.28	%		5.64	%
Consumer lending (excluding credit card) annualized net charge-off ratio		1.22	%		1.35	%		.85	%		1.01	%		.94	%		1.11	%		1.00	%

Total annualized net charge-off ratio		1.32	%		1.35	%		1.17	%		1.26	%		1.31	%		1.27	%		1.47	%

Home equity portfolio credit statistics: (c)
% of first lien positions at origination		42	%		41	%		39	%		37	%		39	%
Weighted-average loan-to-value ratios (LTVs) (d)		81	%		80	%		78	%		81	%		72	%
Weighted-average updated FICO scores (e)		742			742			742			739			743
Annualized net charge-off ratio		1.35	%		1.58	%		.92	%		1.11	%		1.01	%		1.22	%		1.09	%
Loans 30 - 59 days past due		.52	%		.51	%		.54	%		.56	%		.58	%
Loans 60 - 89 days past due		.33	%		.33	%		.33	%		.35	%		.38	%
Loans 90 days past due (f)		1.22	%		1.24	%		1.24	%		1.24	%		1.22	%

Other statistics:
ATMs		7,282			7,261			7,206			7,220			6,806
Branches (g)		2,881			2,887			2,888			2,900			2,511

Customer-related statistics: (in thousands)
Retail Banking checking relationships		6,475			6,451			6,349			6,278			5,761
Retail online banking active customers		4,227			4,117			3,953			3,823			3,519
Retail online bill payment active customers		1,236			1,219			1,189			1,161			1,105

Brokerage statistics:
Financial consultants (h)		636			655			684			693			686
Full service brokerage offices		41			42			40			38			38
Brokerage account assets (billions)	$	38		$	38		$	36		$	37		$	34

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

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

(c)	Lien position, LTV, FICO and delinquency statistics are based upon balances and other data that exclude the impact of accounting for acquired loans.

(d)	Updated LTV is reported for each quarterly period within 2012. For previous quarters, LTV is based upon data from loan origination. Original LTV excludes certain acquired portfolio loans where this data is not available.

(e)	Represents FICO scores that are updated monthly for home equity lines and quarterly for the home equity installment loans.

(f)	Includes non-accrual loans.

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Corporate & Institutional Banking (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
INCOME STATEMENT
Net interest income	$	1,057		$	1,019		$	1,085		$	938		$	943		$	4,099		$	3,538
Noninterest income
Corporate service fees		324			258			248			200			226			1,030			752
Other		195			139			106			128			137			568			485

Noninterest income		519			397			354			328			363			1,598			1,237

Total revenue		1,576			1,416			1,439			1,266			1,306			5,697			4,775
Provision for credit losses (benefit)		9			(61	)		33			19			(136	)					(124	)
Noninterest expense		549			520			496			463			495			2,028			1,832

Pretax earnings		1,018			957			910			784			947			3,669			3,067
Income taxes		369			350			333			289			350			1,341			1,127

Earnings	$	649		$	607		$	577		$	495		$	597		$	2,328		$	1,940

AVERAGE BALANCE SHEET
Loans
Commercial	$	51,081		$	50,636		$	49,087		$	42,919		$	38,709		$	48,444		$	35,764
Commercial real estate		16,517			16,226			15,928			14,388			13,903			15,768			13,938
Commercial - real estate related		6,562			6,008			5,545			4,971			4,463			5,774			3,782
Asset-based lending		10,893			10,406			9,755			9,266			8,893			10,083			8,171
Equipment lease financing		6,272			6,095			5,911			5,706			5,529			5,997			5,506

Total loans		91,325			89,371			86,226			77,250			71,497			86,066			67,161
Goodwill and other intangible assets		3,724			3,707			3,749			3,442			3,291			3,656			3,405
Loans held for sale		1,190			1,263			1,190			1,244			1,271			1,222			1,257
Other assets		12,842			12,582			11,670			10,960			10,111			12,018			9,220

Total assets	$	109,081		$	106,923		$	102,835		$	92,896		$	86,170		$	102,962		$	81,043

Deposits
Noninterest-bearing demand	$	40,607		$	37,685		$	37,813		$	37,225		$	35,770		$	38,337		$	31,462
Money market		16,500			16,237			15,734			13,872			13,385			15,590			12,925
Other		6,842			6,277			5,933			5,372			5,617			6,108			5,651

Total deposits		63,949			60,199			59,480			56,469			54,772			60,035			50,038
Other liabilities		19,107			19,201			17,551			15,987			14,095			17,969			13,323
Capital		9,787			9,937			8,815			8,537			8,256			9,272			8,010

Total liabilities and equity	$	92,843		$	89,337		$	85,846		$	80,993		$	77,123		$	87,276		$	71,371

PERFORMANCE RATIOS
Return on average capital		26	%		24	%		26	%		23	%		29	%		25	%		24	%
Return on average assets		2.37			2.26			2.26			2.14			2.75			2.26			2.39
Noninterest income to total revenue		33			28			25			26			28			28			26
Efficiency		35			37			34			37			38			36			38

COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	265		$	264		$	268		$	267		$	267		$	267		$	266
Acquisitions/additions		35			12			7			10			12			64			43
Repayments/transfers		(18	)		(11	)		(11	)		(9	)		(12	)		(49	)		(42	)

End of period	$	282		$	265		$	264		$	268		$	267		$	282		$	267

OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management (c)	$	337		$	346		$	354		$	343		$	323		$	1,380		$	1,266
Capital Markets (d)	$	228		$	175		$	151		$	156		$	160		$	710		$	622
Commercial mortgage loans held for sale (e)	$	44		$	13		$	34		$	13		$	38		$	104		$	113
Commercial mortgage loan servicing income, net of amortization (f)		57			55			53			30			55			195			180
Commercial mortgage servicing rights recovery/(impairment), net of economic hedge		16			16			(6	)		5			—			31			(157	)

Total commercial mortgage banking activities	$	117		$	84		$	81		$	48		$	93		$	330		$	136
Total loans (g)	$	93,721		$	90,099		$	88,810		$	84,329		$	73,417
Net carrying amount of commercial mortgage servicing rights (g)	$	420		$	402		$	398		$	428		$	468
Credit-related statistics:
Nonperforming assets (g)	$	1,181		$	1,500		$	1,686		$	1,776		$	1,889
Purchased impaired loans (g) (h)	$	875		$	990		$	1,088		$	1,177		$	404
Net charge-offs	$	34		$	35		$	30		$	43		$	43		$	142		$	375

(a)	See note (a) on page 15.

(b)	Represents consolidated PNC amounts. Our 2012 Form 10-K will include additional information regarding these items.

(c)	Includes amounts reported in net interest income and corporate service fees.

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

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

(f)

Includes net interest income and noninterest income from loan servicing and ancillary services, net of commercial mortgage servicing rights amortization and a direct write-down of commercial mortgage servicing rights of $24 million recognized in the first quarter of 2012. Commercial mortgage servicing rights recovery/(impairment), net of economic hedge is shown separately.

(g)	Presented as of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19

Asset Management Group (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
INCOME STATEMENT
Net interest income	$	74		$	73		$	75		$	75		$	73		$	297		$	280
Noninterest income		173			170			165			168			161			676			649

Total revenue		247			243			240			243			234			973			929
Provision for credit losses (benefit)		(2	)		4			(1	)		10			10			11			(24	)
Noninterest expense		195			180			181			176			184			732			687

Pretax earnings		54			59			60			57			40			230			266
Income taxes		20			22			22			21			15			85			98

Earnings	$	34		$	37		$	38		$	36		$	25		$	145		$	168

AVERAGE BALANCE SHEET
Loans
Consumer	$	4,671		$	4,486		$	4,321		$	4,183		$	4,173		$	4,416		$	4,108
Commercial and commercial real estate		1,021			1,060			1,098			1,126			1,193			1,076			1,301
Residential mortgage		706			687			692			692			696			695			706

Total loans		6,398			6,233			6,111			6,001			6,062			6,187			6,115
Goodwill and other intangible assets		315			324			333			345			349			329			361
Other assets		226			214			215			220			233			219			243

Total assets	$	6,939		$	6,771		$	6,659		$	6,566		$	6,644		$	6,735		$	6,719

Deposits
Noninterest-bearing demand	$	1,573		$	1,336		$	1,362		$	1,575		$	1,305		$	1,462		$	1,209
Interest-bearing demand		3,009			2,662			2,674			2,637			2,529			2,746			2,361
Money market		3,562			3,466			3,535			3,651			3,625			3,553			3,589

Total transaction deposits		8,144			7,464			7,571			7,863			7,459			7,761			7,159
CDs/IRAs/savings deposits		461			465			490			549			587			491			632

Total deposits		8,605			7,929			8,061			8,412			8,046			8,252			7,791
Other liabilities		65			68			68			71			78			68			74
Capital		481			464			463			347			355			439			349

Total liabilities and equity	$	9,151		$	8,461		$	8,592		$	8,830		$	8,479		$	8,759		$	8,214

PERFORMANCE RATIOS
Return on average capital		28	%		32	%		33	%		42	%		28	%		33	%		48	%
Return on average assets		1.95			2.17			2.30			2.21			1.49			2.15			2.50
Noninterest income to total revenue		70			70			69			69			69			69			70
Efficiency		79			74			75			72			79			75			74

OTHER INFORMATION
Total nonperforming assets (b)	$	69		$	61		$	67		$	73		$	60
Purchased impaired loans (b) (c)	$	109		$	118		$	122		$	126		$	127
Total net charge-offs (recoveries)	$	2		$	(1	)	$	3		$	2		$	6		$	6		$	—

ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	107		$	106		$	102		$	104		$	100
Institutional		117			116			112			115			110

Total	$	224		$	222		$	214		$	219		$	210

Asset Type
Equity	$	120		$	120		$	116		$	119		$	111
Fixed income		69			68			66			66			66
Liquidity/Other		35			34			32			34			33

Total	$	224		$	222		$	214		$	219		$	210

Discretionary assets under management
Personal	$	73		$	73		$	71		$	73		$	69
Institutional		39			39			38			39			38

Total	$	112		$	112		$	109		$	112		$	107

Asset Type
Equity	$	56		$	57		$	56		$	58		$	53
Fixed income		39			39			38			38			38
Liquidity/Other		17			16			15			16			16

Total	$	112		$	112		$	109		$	112		$	107

Nondiscretionary assets under administration
Personal	$	34		$	33		$	31		$	31		$	31
Institutional		78			77			74			76			72

Total	$	112		$	110		$	105		$	107		$	103

Asset Type
Equity	$	64		$	63		$	60		$	61		$	58
Fixed income		30			29			28			28			28
Liquidity/Other		18			18			17			18			17

Total	$	112		$	110		$	105		$	107		$	103

(a)	See note (a) on page 15.

(b)	As of period end.

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

(d)	Excludes brokerage account assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 20

Residential Mortgage Banking (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
INCOME STATEMENT
Net interest income	$	53		$	52		$	53		$	51		$	52		$	209		$	201
Noninterest income
Loan servicing revenue
Servicing fees		48			49			52			56			53			205			226
Net MSR hedging gains		2			7			39			71			35			119			220
Loan sales revenue
Provision for residential mortgage repurchase obligations		(254	)		(37	)		(438	)		(32	)		(36	)		(761	)		(102	)
Loan sales revenue		213			216			177			141			110			747			384
Other		(4	)		(3	)		8			6			6			7			23

Total noninterest income		5			232			(162	)		242			168			317			751

Total revenue		58			284			(109	)		293			220			526			952
Provision for credit losses (benefit)		2			2			(2	)		(7	)		(10	)		(5	)		5
Noninterest expense		333			226			230			203			317			992			797

Pretax earnings (loss)		(277	)		56			(337	)		97			(87	)		(461	)		150
Income taxes (benefit)		(85	)		20			(124	)		36			(26	)		(153	)		61

Earnings (loss)	$	(192	)	$	36		$	(213	)	$	61		$	(61	)	$	(308	)	$	89

AVERAGE BALANCE SHEET
Portfolio loans	$	2,559		$	2,648		$	2,751		$	2,922		$	2,868		$	2,719		$	2,771
Loans held for sale		1,832			1,694			1,830			1,675			1,409			1,758			1,492
Mortgage servicing rights (MSR)		620			599			665			645			701			632			905
Other assets		6,120			6,560			6,255			6,747			6,786			6,420			6,102

Total assets	$	11,131		$	11,501		$	11,501		$	11,989		$	11,764		$	11,529		$	11,270

Deposits	$	3,286		$	3,492		$	1,783		$	1,662		$	1,756		$	2,560		$	1,675
Borrowings and other liabilities		3,729			4,198			4,067			4,353			4,324			4,086			3,877
Capital		1,830			1,488			1,157			832			832			1,329			731

Total liabilities and equity	$	8,845		$	9,178		$	7,007		$	6,847		$	6,912		$	7,975		$	6,283

PERFORMANCE RATIOS
Return on average capital		(42	)%		10	%		(74	)%		29	%		(29	)%		(23	)%		12	%
Return on average assets		(6.86	)		1.25			(7.45	)		2.05			(2.06	)		(2.67	)		.79
Noninterest income to total revenue		9			82			149			83			76			60			79
Efficiency		574			80			(211	)		69			144			189			84

RESIDENTIAL MORTGAGE SERVICING PORTFOLIO - THIRD-PARTY (in billions)
Beginning of period	$	119		$	116		$	121		$	118		$	121		$	118		$	125
Acquisitions		6			8						7			1			21			6
Additions		4			4			2			4			3			14			12
Repayments/transfers		(10	)		(9	)		(7	)		(8	)		(7	)		(34	)		(25	)

End of period	$	119		$	119		$	116		$	121		$	118		$	119		$	118

Servicing portfolio - third-party statistics: (b)
Fixed rate		92	%		91	%		91	%		91	%		90	%
Adjustable rate/balloon		8	%		9	%		9	%		9	%		10	%
Weighted-average interest rate		4.94	%		5.06	%		5.21	%		5.26	%		5.38	%
MSR capitalized value (in billions)	$	.7		$	.6		$	.6		$	.7		$	.7
MSR capitalization value (in basis points)		54			50			50			60			54
Weighted-average servicing fee (in basis points)		28			29			29			29			29

RESIDENTIAL MORTGAGE REPURCHASE RESERVE
Beginning of period	$	421		$	462		$	101		$	83		$	85		$	83		$	144
Provision		254			37			438			32			36			761			102
RBC Bank (USA) acquisition											26						26
Losses - loan repurchases and settlements		(61	)		(78	)		(77	)		(40	)		(38	)		(256	)		(163	)

End of period	$	614		$	421		$	462		$	101		$	83		$	614		$	83

OTHER INFORMATION
Loan origination volume (in billions)	$	4.4		$	3.8		$	3.6		$	3.4		$	3.0		$	15.2		$	11.4
Percentage of originations represented by:
Agency and government programs		100	%		100	%		100	%		100	%		100	%		100	%		100	%
Refinance volume		80	%		74	%		72	%		82	%		79	%		77	%		76	%
Total nonperforming assets (b)	$	134		$	82		$	78		$	80		$	76
Purchased impaired loans (b) (c)	$	38		$	69		$	84		$	100		$	112

(a)	See note (a) on page 15.

(b)	As of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 21

Non-Strategic Assets Portfolio (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions	December 31 2012			September 30 2012			June 30 2012			March 31 2012			December 31 2011			December 31 2012			December 31 2011
INCOME STATEMENT
Net interest income	$	197		$	195		$	221		$	217		$	192		$	830		$	913
Noninterest income		21			9			2			(19	)		15			13			47

Total revenue		218			204			223			198			207			843			960
Provision for credit losses		52			61			50			18			88			181			366
Noninterest expense		73			79			67			68			119			287			275

Pretax earnings		93			64			106			112			—			375			319
Income taxes		34			24			39			41			2			138			119

Earnings (loss)	$	59		$	40		$	67		$	71		$	(2	)	$	237		$	200

AVERAGE BALANCE SHEET
Commercial Lending:
Commercial/Commercial real estate	$	720		$	846		$	1,008		$	1,004		$	1,030		$	894		$	1,277
Lease financing		684			678			675			670			703			677			712

Total commercial lending		1,404			1,524			1,683			1,674			1,733			1,571			1,989

Consumer Lending:
Home equity		4,325			4,498			4,668			4,849			5,006			4,584			5,257
Residential real estate		6,130			6,328			6,534			6,046			5,937			6,259			6,161

Total consumer lending		10,455			10,826			11,202			10,895			10,943			10,843			11,418

Total portfolio loans		11,859			12,350			12,885			12,569			12,676			12,414			13,407
Other assets (b)		(481	)		(333	)		(195	)		(445	)		(368	)		(364	)		(288	)

Total assets	$	11,378		$	12,017		$	12,690		$	12,124		$	12,308		$	12,050		$	13,119

Deposits and other liabilities	$	186		$	189		$	180		$	177		$	85		$	183		$	111
Capital		1,188			1,278			1,311			1,176			1,213			1,238			1,319

Total liabilities and equity	$	1,374		$	1,467		$	1,491		$	1,353		$	1,298		$	1,421		$	1,430

PERFORMANCE RATIOS
Return on average capital		20	%		12	%		21	%		24	%		(1	)%		19	%		15	%
Return on average assets		2.06			1.32			2.12			2.36			(.06	)		1.97			1.52
Noninterest income to total revenue		10			4			1			(10	)		7			2			5
Efficiency		33			39			30			34			57			34			29

OTHER INFORMATION
Nonperforming assets (c)	$	999		$	1,056		$	1,120		$	1,192		$	1,024
Purchased impaired loans (c) (d)	$	5,547		$	5,702		$	5,889		$	6,097		$	5,251
Net charge-offs	$	60		$	65		$	83		$	91		$	77		$	299		$	370
Annualized net charge-off ratio		2.01	%		2.09	%		2.59	%		2.91	%		2.41	%		2.41	%		2.76	%

LOANS (c)
Commercial Lending:
Commercial/Commercial real estate	$	665		$	795		$	945		$	1,104		$	976
Lease financing		686			680			677			671			670

Total commercial lending		1,351			1,475			1,622			1,775			1,646

Consumer Lending:
Home equity		4,237			4,408			4,575			4,751			4,930
Residential real estate		6,093			6,272			6,475			6,693			5,840

Total consumer lending		10,330			10,680			11,050			11,444			10,770

Total loans	$	11,681		$	12,155		$	12,672		$	13,219		$	12,416

(a)	See note (a) on page 15.

(b)	Other assets were negative in all periods presented due to the allowance for loan and lease losses.

(c)	As of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 22

Glossary Of Terms

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

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

Annualized - Adjusted to reflect a full year of activity.

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

Basis point - One hundredth of a percentage point.

Carrying value of purchased impaired loans - The net value on the balance sheet which represents the recorded investment less any valuation allowance.

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

Charge-off - Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred from portfolio holdings to held for sale by reducing the loan carrying amount to the fair value of the loan, if fair value is less than carrying amount.

Commercial mortgage banking activities - Includes commercial mortgage servicing, originating commercial mortgages for sale and related hedging activities. Commercial mortgage banking activities revenue includes commercial mortgage servicing (including net interest income and noninterest income from loan servicing and ancillary services, net of commercial mortgage servicing rights amortization, and commercial mortgage servicing rights valuations), and revenue derived from commercial mortgage loans intended for sale and related hedges (including loan origination fees, net interest income, valuation adjustments and gains or losses on sales).

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.

Core net interest income - Total net interest income less purchase accounting accretion.

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

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

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

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

Economic capital - Represents the amount of resources that a business or business segment should hold to guard against potentially large losses that could cause insolvency and is based on a measurement of economic risk. 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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 23

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.

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

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

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

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

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

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

LIBOR - Acronym for London InterBank Offered Rate. LIBOR is the average interest rate charged when banks in the London wholesale money market (or interbank market) borrow unsecured funds from each other. LIBOR rates are used as a benchmark for interest rates on a global basis. PNC’s 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, an LTV of less than 90% is better secured and has less credit risk than an 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, or the guarantor(s) quality and guaranty type (full or partial). Each loan has its own LGD. The LGD risk rating measures the percentage of exposure of a specific credit obligation that we expect to lose if default occurs. LGD is net of recovery, through either liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.

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

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

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

Nonperforming assets - Nonperforming assets include nonperforming loans, TDRs, and OREO and foreclosed assets, but exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under fair value option and purchased impaired loans. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans - Loans for which we do not accrue interest income. Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, 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, 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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 24

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.

Other real estate owned (OREO) and foreclosed assets - Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed assets include real and personal property, equity interests in corporations, partnerships, and limited liability companies.

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.

Parent company liquidity coverage - Liquid assets divided by funding obligations within a two year period.

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

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

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

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. Accretion for purchased impaired loans includes any cash recoveries received in excess of the recorded investment.

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 (purchased impaired loans) - 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.

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 25

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

Return on average common shareholders’ equity - Annualized net income attributable to common shareholders divided by average common shareholders’ equity.

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

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

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

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

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

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

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

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

Total equity - Total shareholders’ equity plus noncontrolling interests.

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

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

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

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

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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