PNC FINANCIAL SERVICES GROUP, INC. - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - FORM 8-K - PNC FINANCIAL SERVICES GROUP, INC.	d656510d8k.htm
EX-99.2 - EX-99.2 - PNC FINANCIAL SERVICES GROUP, INC.	d656510dex992.htm

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2013

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2013

(UNAUDITED)


	Page
Consolidated Results:

Income Statement		1
Balance Sheet		2
Capital Ratios		2
Average Balance Sheet		3-4
Details of Net Interest Margin		5
Total and Core Net Interest Income and Net Interest Margin		6
Per Share Related Information		7
Selected Noninterest Income Information		7
Loans, Loans Held for Sale and Net Unfunded Commitments		8
Allowances for Credit Losses		9
Purchase Accounting Accretion, Accretable Yield 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		18-19
Asset Management Group		20
Residential Mortgage Banking		21
Non-Strategic Assets Portfolio		22
Glossary of Terms		23-27

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 16, 2014. 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, as well as other products and services 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, Missouri, Georgia, Wisconsin and South Carolina. PNC also provides certain products and services internationally.


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 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
Interest Income
Loans	$	1,949		$	1,933		$	1,955		$	2,029		$	2,094		$	7,866		$	8,284
Investment securities		434			423			422			470			478			1,749			2,035
Other		96			92			92			112			99			392			415
Total interest income		2,479			2,448			2,469			2,611			2,671			10,007			10,734
Interest Expense
Deposits		81			84			86			93			97			344			386
Borrowed funds		132			130			125			129			150			516			708
Total interest expense		213			214			211			222			247			860			1,094
Net interest income		2,266			2,234			2,258			2,389			2,424			9,147			9,640
Noninterest Income
Asset management		364			330			340			308			302			1,342			1,169
Consumer services		327			316			314			296			294			1,253			1,136
Corporate services (a)		301			306			326			277			349			1,210			1,166
Residential mortgage (b) (c)		271			199			167			234			-			871			284
Service charges on deposits		158			156			147			136			150			597			573
Net gains on sales of securities		3			21			61			14			45			99			204
Net other-than-temporary impairments (d)		-			(2	)		(4	)		(10	)		(15	)		(16	)		(111	)
Other (e)		383			360			455			311			520			1,509			1,451
Total noninterest income		1,807			1,686			1,806			1,566			1,645			6,865			5,872
Total revenue		4,073			3,920			4,064			3,955			4,069			16,012			15,512
Provision For Credit Losses		113			137			157			236			318			643			987
Noninterest Expense
Personnel		1,207			1,181			1,186			1,169			1,216			4,743			4,617
Occupancy		211			205			206			211			226			833			827
Equipment		197			194			189			183			194			763			735
Marketing		66			68			67			45			70			246			279
Other		866			776			787			787			1,123			3,216			4,124
Total noninterest expense		2,547			2,424			2,435			2,395			2,829			9,801			10,582
Income before income taxes and noncontrolling interests		1,413			1,359			1,472			1,324			922			5,568			3,943
Income taxes		352			320			349			320			203			1,341			942
Net income		1,061			1,039			1,123			1,004			719			4,227			3,001
Less: Net income (loss) attributable to noncontrolling interests		13			2			1			(9	)		1			7			(12	)
Preferred stock dividends and discount accretion and redemptions		50			71			53			75			54			249			181
Net income attributable to common shareholders	$	998		$	966		$	1,069		$	938		$	664		$	3,971		$	2,832
Earnings Per Common Share
Basic	$	1.87		$	1.82		$	2.02		$	1.78		$	1.26		$	7.48		$	5.36
Diluted	$	1.85		$	1.79		$	1.99		$	1.76		$	1.24		$	7.39		$	5.30
Average Common Shares Outstanding
Basic		530			529			528			526			526			528			526
Diluted		535			534			531			528			528			532			529
Efficiency		63	%		62	%		60	%		61	%		70	%		61	%		68	%
Noninterest income to total revenue		44	%		43	%		44	%		40	%		40	%		43	%		38	%
Effective tax rate (f)		24.9	%		23.5	%		23.7	%		24.2	%		22.0	%		24.1	%		23.9	%

For additional information regarding footnotes (c) and (e) below, refer to Selected Noninterest Income Statement Information on page 7.

(a)	Includes commercial mortgage servicing rights valuation adjustments, net of economic hedge.

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

(c)	Includes benefit/provisions for residential mortgage repurchase obligations.

(d)	Net other-than-temporary impairments for the three months ended December 31, 2013 was less than $.5 million.

(e)	Includes gains on sales of Visa Class B common shares and credit valuations related to customer initiated hedging activities.

(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 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012
Assets
Cash and due from banks (a)	$	4,043		$	4,908		$	4,051		$	3,948		$	5,220
Federal funds sold and resale agreements (b)		1,986			911			1,613			1,274			1,463
Trading securities		3,073			1,603			2,109			2,243			2,096
Interest-earning deposits with banks (a) (c)		12,135			8,047			3,797			1,541			3,984
Loans held for sale (b)		2,255			2,399			3,814			3,295			3,693
Investment securities (a)		60,294			57,260			57,449			59,361			61,406
Loans (a) (b)		195,613			192,856			189,775			186,504			185,856
Allowance for loan and lease losses (a)		(3,609	)		(3,691	)		(3,772	)		(3,828	)		(4,036	)
Net loans		192,004			189,165			186,003			182,676			181,820
Goodwill		9,074			9,074			9,075			9,075			9,072
Other intangible assets		2,216			2,194			2,153			1,921			1,797
Equity investments (a) (d)		10,664			10,303			10,054			11,008			10,877
Other (a) (b)		22,552			22,733			24,297			24,470			23,679
Total assets	$	320,296		$	308,597		$	304,415		$	300,812		$	305,107
Liabilities
Deposits
Noninterest-bearing	$	70,306		$	68,747		$	66,708		$	64,652		$	69,980
Interest-bearing		150,625			147,327			145,571			146,968			143,162
Total deposits		220,931			216,074			212,279			211,620			213,142
Borrowed funds
Federal funds purchased and repurchase agreements		4,289			3,165			4,303			4,000			3,327
Federal Home Loan Bank borrowings		12,912			8,479			8,481			5,483			9,437
Bank notes and senior debt		12,603			11,924			11,177			10,918			10,429
Subordinated debt		8,244			7,829			7,113			7,996			7,299
Commercial paper (a)		4,997			6,994			6,400			6,953			8,453
Other (a) (b)		3,060			1,882			2,390			2,297			1,962
Total borrowed funds		46,105			40,273			39,864			37,647			40,907
Allowance for unfunded loan commitments and letters of credit		242			235			242			238			250
Accrued expenses (a)		4,734			4,673			4,057			4,181			4,449
Other (a)		4,187			4,522			6,032			5,048			4,594
Total liabilities		276,199			265,777			262,474			258,734			263,342

Equity
Preferred stock (e)
Common stock - $5 par value
Authorized 800 shares, issued 540, 539, 539, 538 and 538 shares		2,698			2,695			2,693			2,690			2,690
Capital surplus - preferred stock		3,941			3,940			3,939			3,591			3,590
Capital surplus - common stock and other		12,416			12,310			12,234			12,174			12,193
Retained earnings		23,325			22,561			21,828			20,993			20,265
Accumulated other comprehensive income (loss)		436			47			45			767			834
Common stock held in treasury at cost: 7, 7, 8, 9 and 10 shares		(408	)		(423	)		(453	)		(552	)		(569	)
Total shareholders’ equity		42,408			41,130			40,286			39,663			39,003
Noncontrolling interests		1,689			1,690			1,655			2,415			2,762
Total equity		44,097			42,820			41,941			42,078			41,765
Total liabilities and equity	$	320,296		$	308,597		$	304,415		$	300,812		$	305,107
Capital Ratios
Basel 1 Ratios
Tier 1 common (f)		10.5	%		10.3	%		10.1	%		9.8	%		9.6	%
Tier 1 risk-based (f)		12.4			12.3			12.0			11.6			11.6
Total risk-based (f)		15.8			15.6			15.2			14.9			14.7
Leverage (f)		11.0			11.1			10.9			10.4			10.4
Common shareholders’ equity to assets		12.0			12.1			11.9			12.0			11.6

(a)	Amounts include consolidated variable interest entities. Our 2013 Form 10-Qs included, and our 2013 Form 10-K will include, additional information regarding these items.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our 2013 Form 10-Qs included, and our 2013 Form 10-K will include, additional information regarding these items.

(c)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $11.7 billion, $7.6 billion, $3.3 billion, $1.1 billion and $3.5 billion as of December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, respectively.

(d)	Amounts include our equity interest in BlackRock.

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

(f)	The ratio as of December 31, 2013 is estimated.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Average Consolidated Balance Sheet (Unaudited) (a)


	Three months ended															Year ended
In millions	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	22,327		$	23,674		$	24,339		$	25,168		$	25,552		$	23,869		$	26,522
Non-agency		5,539			5,862			5,889			6,025			6,245			5,828			6,506
Commercial mortgage-backed		4,460			4,349			3,855			3,745			3,674			4,105			3,682
Asset-backed		5,814			5,962			5,919			5,731			5,643			5,857			5,227
U.S. Treasury and government agencies		2,507			2,013			2,074			2,715			2,746			2,326			2,733
State and municipal		2,275			2,354			2,182			2,189			2,034			2,250			1,920
Other debt		2,523			2,630			2,728			2,649			2,860			2,632			3,019
Corporate stocks and other		359			339			304			368			346			342			350
Total securities available for sale		45,804			47,183			47,290			48,590			49,100			47,209			49,959
Securities held to maturity
Residential mortgage-backed		5,726			3,794			3,833			4,146			4,377			4,374			4,423
Commercial mortgage-backed		3,153			3,276			3,521			3,747			3,967			3,422			4,288
Asset-backed		1,047			1,064			978			826			702			983			892
U.S. Treasury and government agencies		238			236			233			231			229			235			226
State and municipal		1,056			658			640			639			664			749			670
Other		341			346			349			352			355			347			358
Total securities held to maturity		11,561			9,374			9,554			9,941			10,294			10,110			10,857
Total investment securities		57,365			56,557			56,844			58,531			59,394			57,319			60,816
Loans
Commercial		88,185			86,456			86,015			83,476			80,876			86,047			76,654
Commercial real estate		20,587			19,558			18,860			18,850			18,678			19,469			18,115
Equipment lease financing		7,428			7,296			7,350			7,241			6,956			7,329			6,674
Consumer		63,203			62,277			61,587			61,411			61,430			62,125			59,752
Residential real estate		15,180			14,918			14,794			15,121			15,257			15,003			15,423
Total loans		194,583			190,505			188,606			186,099			183,197			189,973			176,618
Loans held for sale		2,225			3,071			3,072			3,279			3,025			2,909			2,977
Federal funds sold and resale agreements		864			664			1,141			1,176			1,290			960			1,594
Other		15,448			8,809			6,439			7,095			6,737			9,484			6,549
Total interest-earning assets		270,485			259,606			256,102			256,180			253,643			260,645			248,554
Noninterest-earning assets:
Allowance for loan and lease losses		(3,667	)		(3,761	)		(3,821	)		(3,937	)		(3,987	)		(3,796	)		(4,157	)
Cash and due from banks		3,904			3,984			3,869			4,055			4,126			3,953			3,877
Other		43,471			43,479			45,877			47,147			48,349			44,964			46,751
Total assets	$	314,193		$	303,308		$	302,027		$	303,445		$	302,131		$	305,766		$	295,025

(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 2013		September 30 2013		June 30 2013		March 31 2013		December 31 2012		December 31 2013		December 31 2012
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	73,534	$	70,557	$	69,123	$	69,003	$	67,997	$	70,567	$	65,933
Demand		41,151		39,866		40,172		39,372		36,619		40,144		34,342
Savings		11,010		11,007		11,124		10,671		10,190		10,954		9,863
Retail certificates of deposit		21,138		21,859		22,641		23,488		24,394		22,274		26,609
Time deposits in foreign offices and other time		2,013		1,804		2,164		2,267		2,740		2,061		3,195
Total interest-bearing deposits		148,846		145,093		145,224		144,801		141,940		146,000		139,942
Borrowed funds
Federal funds purchased and repurchase agreements		4,120		2,967		4,132		4,328		4,023		3,884		4,542
Federal Home Loan Bank borrowings		11,348		8,208		7,218		7,657		8,877		8,617		9,678
Bank notes and senior debt		12,252		11,256		10,886		10,469		9,702		11,221		10,275
Subordinated debt		7,900		7,334		7,003		7,249		6,668		7,373		7,019
Commercial paper		5,297		7,109		7,263		7,967		9,069		6,902		8,383
Other		2,156		1,792		2,099		2,057		1,961		2,025		1,947
Total borrowed funds		43,073		38,666		38,601		39,727		40,300		40,022		41,844
Total interest-bearing liabilities		191,919		183,759		183,825		184,528		182,240		186,022		181,786
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		68,193		66,834		64,749		64,850		65,527		66,168		61,610
Allowance for unfunded loan commitments and letters of credit		236		242		238		249		239		241		237
Accrued expenses and other liabilities		10,674		10,372		10,929		11,891		12,237		10,961		11,350
Equity		43,171		42,101		42,286		41,927		41,888		42,374		40,042
Total liabilities and equity	$	314,193	$	303,308	$	302,027	$	303,445	$	302,131	$	305,766	$	295,025
(a) Calculated using average daily balances.

Supplemental Average Balance Sheet Information (Unaudited)

Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	148,846	$	145,093	$	145,224	$	144,801	$	141,940	$	146,000	$	139,942
Noninterest-bearing deposits		68,193		66,834		64,749		64,850		65,527		66,168		61,610
Total deposits	$	217,039	$	211,927	$	209,973	$	209,651	$	207,467	$	212,168	$	201,552
Transaction deposits	$	182,878	$	177,257	$	174,044	$	173,225	$	170,143	$	176,879	$	161,885
Common shareholders’ equity	$	37,543	$	36,483	$	36,310	$	35,628	$	35,296	$	36,497	$	34,066

Other Interest-Earning Assets
Interest-earning deposits with banks	$	10,455	$	4,626	$	2,063	$	2,410	$	2,547	$	4,910	$	1,913
Trading securities		2,616		1,901		2,177		2,549		2,436		2,310		2,741
Other		2,377		2,282		2,199		2,136		1,754		2,264		1,895
Total other interest-earning assets	$	15,448	$	8,809	$	6,439	$	7,095	$	6,737	$	9,484	$	6,549


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Details of Net Interest Margin (Unaudited) (a)


	Three months ended															Year ended
	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency		2.68	%		2.36	%		2.50	%		2.90	%		2.94	%		2.61	%		3.07	%
Non-agency		5.14			5.70			5.51			5.40			5.39			5.44			5.38
Commercial mortgage-backed		3.83			3.82			4.00			4.02			3.81			3.90			4.24
Asset-backed		1.92			1.87			1.80			1.92			1.93			1.88			2.03
U.S. Treasury and government agencies		1.36			1.90			1.37			1.65			1.76			1.59			2.01
State and municipal		4.31			4.24			4.48			4.93			4.66			4.31			4.74
Other debt		2.30			2.38			2.39			2.58			2.91			2.43			2.72
Corporate stocks and other		.15			.12			.14			.12			.24
Total securities available for sale		2.96			2.91			2.93			3.16			3.19			2.98			3.31
Securities held to maturity
Residential mortgage-backed		3.42			3.92			3.26			3.44			3.34			3.50			3.53
Commercial mortgage-backed		4.28			4.29			4.34			4.71			4.50			4.41			4.55
Asset-backed		1.57			1.59			1.74			1.80			1.76			1.63			1.91
U.S. Treasury and government agencies		3.82			3.81			3.80			3.77			3.82			3.83			3.98
State and municipal		5.65			5.55			4.27			4.23			4.23			5.61			4.18
Other		4.20			2.90			2.89			2.82			2.89			3.17			2.79
Total securities held to maturity		3.72			3.86			3.57			3.82			3.73			3.78			3.82
Total investment securities		3.11			3.06			3.04			3.27			3.28			3.12			3.40

Loans
Commercial		3.53			3.62			3.71			4.03			4.16			3.77			4.50
Commercial real estate		4.50			4.64			4.84			5.05			5.57			4.81			5.55
Equipment lease financing		3.74			3.75			4.41			4.05			4.26			3.98			4.60
Consumer		4.29			4.31			4.40			4.67			4.68			4.42			4.69
Residential real estate		5.18			5.00			5.13			5.29			5.36			5.15			5.39
Total loans		4.02			4.06			4.19			4.45			4.58			4.21			4.75
Loans held for sale		5.40			5.34			4.22			6.49			5.34			5.40			5.64
Federal funds sold and resale agreements		.79			1.10			.61			.74			1.04			.83			1.38
Other		1.63			2.26			3.66			3.25			3.24			2.43			3.45
Total yield on interest-earning assets		3.69			3.79			3.91			4.15			4.24			3.90			4.38

Rate on interest-bearing liabilities
Interest-bearing deposits
Money market		.18			.18			.18			.19			.19			.18			.21
Demand		.05			.05			.05			.04			.04			.04			.04
Savings		.08			.10			.10			.10			.09			.09			.09
Retail certificates of deposit		.76			.79			.82			.85			.89			.81			.79
Time deposits in foreign offices and other time		.17			.22			.43			.61			.45			.39			.47
Total interest-bearing deposits		.22			.23			.24			.26			.27			.24			.28

Borrowed funds
Federal funds purchased and repurchase agreements		.14			.15			.14			.16			.20			.15			.22
Federal Home Loan Bank borrowings		.48			.48			.53			.61			.70			.52			.74
Bank notes and senior debt		1.51			1.71			1.71			1.83			2.07			1.70			2.30
Subordinated debt		2.63			2.89			2.78			2.83			3.57			2.78			4.56
Commercial paper		.26			.22			.22			.25			.28			.23			.27
Other		2.44			2.91			2.62			2.28			2.78			2.62			2.41
Total borrowed funds		1.21			1.33			1.28			1.30			1.46			1.29			1.69
Total rate on interest-bearing liabilities		.44			.46			.46			.48			.54			.46			.60
Interest rate spread		3.25			3.33			3.45			3.67			3.70			3.44			3.78
Impact of noninterest-bearing sources		.13			.14			.13			.14			.15			.13			.16
Net interest margin		3.38	%		3.47	%		3.58	%		3.81	%		3.85	%		3.57	%		3.94	%

(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, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, were $45 million, $43 million, $40 million, $40 million and $42 million, respectively. The taxable-equivalent adjustments to net interest income for the years ended December 31, 2013 and December 31, 2012 were $168 million and $144 million, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Total and Core Net Interest Income and Net Interest Margin (Unaudited)

Total and Core Net Interest Income


	Three months ended															Year ended
In millions	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
Core net interest income (a)	$	2,075		$	2,035		$	2,054		$	2,140		$	2,151		$	8,304		$	8,516
Total purchase accounting accretion (a) (b)		191			199			204			249			273			843			1,124
Total net interest income	$	2,266		$	2,234		$	2,258		$	2,389		$	2,424		$	9,147		$	9,640
(a) We believe that core net interest income and purchase accounting accretion are useful in evaluating the components of net interest income.
(b) Total purchase accounting accretion includes purchase accounting accretion on purchased impaired loans. Refer to the Accretion - Purchased Impaired Loans table on page 10 for details.

Details of Net Interest Margin (c)

	Three months ended															Year ended
In millions	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
Average yields/rates
Yield on interest earning assets
Total investment securities		3.11	%		3.06	%		3.04	%		3.27	%		3.28	%		3.12	%		3.40	%
Total loans		4.02			4.06			4.19			4.45			4.58			4.21			4.75
Other		2.05			2.96			3.50			3.91			3.56			2.96			3.74
Total yield on interest earning assets		3.69			3.79			3.91			4.15			4.24			3.90			4.38

Rate on interest-bearing liabilities
Total interest-bearing deposits		.22			.23			.24			.26			.27			.24			.28
Total borrowed funds		1.21			1.33			1.28			1.30			1.46			1.29			1.69
Total rate on interest-bearing liabilities		.44			.46			.46			.48			.54			.46			.60

Interest rate spread		3.25			3.33			3.45			3.67			3.70			3.44			3.78
Impact of noninterest-bearing sources		.13			.14			.13			.14			.15			.13			.16
Net interest margin		3.38	%		3.47	%		3.58	%		3.81	%		3.85	%		3.57	%		3.94	%
(c) See note (a) on page 5.

Details of Core Net Interest Margin (d)

	Three months ended															Year ended
In millions	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
Average yields/rates
Yield on interest earning assets
Total investment securities		3.02	%		2.96	%		2.95	%		3.21	%		3.17	%		3.03	%		3.30	%
Total loans		3.65			3.68			3.77			3.96			4.02			3.79			4.20
Other		1.99			2.74			3.69			3.22			3.35			2.77			3.46
Total yield on interest earning assets		3.40			3.48			3.58			3.75			3.80			3.57			3.95

Rate on interest-bearing liabilities
Total interest-bearing deposits		.24			.26			.27			.29			.31			.27			.39
Total borrowed funds		1.06			1.18			1.12			1.09			1.23			1.12			1.46
Total rate on interest-bearing liabilities		.43			.45			.45			.46			.52			.45			.63

Interest rate spread		2.97			3.03			3.13			3.29			3.28			3.12			3.32
Impact of noninterest-bearing sources		.13			.14			.13			.14			.15			.13			.16
Core net interest margin		3.10			3.17			3.26			3.43			3.43			3.25			3.48
Purchase accounting accretion impact on net interest margin		.28			.30			.32			.38			.42			.32			.46
Net interest margin		3.38	%		3.47	%		3.58	%		3.81	%		3.85	%		3.57	%		3.94	%

(d)

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. To calculate core net interest margin, each calculated margin in the table has been adjusted by 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 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013		December 31 2012
Basic
Net income	$	1,061		$	1,039		$	1,123		$	1,004		$	719		$	4,227	$	3,001
Less:
Net income (loss) attributable to noncontrolling interests		13			2			1			(9	)		1			7		(12	)
Preferred stock dividends and discount accretion and redemptions		50			71			53			75			54			249		181
Dividends and undistributed earnings allocated to nonvested restricted shares		5			4			5			4			4			18		14

Net income attributable to basic common shares	$	993		$	962		$	1,064		$	934		$	660		$	3,953	$	2,818
Basic weighted-average common shares outstanding		530			529			528			526			526			528		526
Basic earnings per common share	$	1.87		$	1.82		$	2.02		$	1.78		$	1.26		$	7.48	$	5.36
Diluted
Net income attributable to basic common shares	$	993		$	962		$	1,064		$	934		$	660		$	3,953	$	2,818
Less: Impact of BlackRock earnings per share dilution		5			4			4			5			4			18		14

Net income attributable to diluted common shares	$	988		$	958		$	1,060		$	929		$	656		$	3,935	$	2,804
Basic weighted-average common shares outstanding		530			529			528			526			526			528		526
Dilutive potential common shares		5			5			3			2			2			4		3

Diluted weighted-average common shares outstanding		535			534			531			528			528			532		529
Diluted earnings per common share	$	1.85		$	1.79		$	1.99		$	1.76		$	1.24		$	7.39	$	5.30

Selected Noninterest Income Information (Unaudited)
	Three months ended															Year ended
In millions, except per share data	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013		December 31 2012
Increase (Decrease) to Noninterest Income and Impact on Diluted Earnings per Share
Commercial mortgage servicing rights (impairment) / recovery, net of economic hedge (After-tax)	$	(5	)	$	18		$	44		$	11		$	16		$	68	$	31
Impact on diluted earnings per share (a)		(.01	)		.02			.05			.01			.02			.08		.04

Benefit / (provision) for residential mortgage repurchase obligations (Pre-tax)	$	124		$	6		$	(73	)	$	(4	)	$	(254	)	$	53	$	(761	)
Impact on diluted earnings per share (a)		.15			.01			(.09	)		(.00	)		(.31	)		.06		(.93	)

Net gains on sales of securities (Pre-tax)	$	3		$	21		$	61		$	14		$	45		$	99	$	204
Impact on diluted earnings per share (a)		.00			.02			.08			.02			.06			.12		.25

Gains on sales of Visa Class B common shares (Pre-tax)				$	85		$	83					$	130		$	168	$	267
Impact on diluted earnings per share (a)					.10			.10						.16			.21		.33

Credit valuations related to customer initiated hedging activities (Pre-tax)	$	16		$	(1	)	$	39		$	2		$	17		$	56	$	7
Impact on diluted earnings per share (a)		.02			(.00	)		.05			.00			.02			.07		.01

(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%.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Loans (Unaudited)


In millions	December 31 2013		September 30 2013		June 30 2013		March 31 2013		December 31 2012
Commercial
Retail/wholesale trade	$	15,530	$	15,178	$	15,192	$	14,784	$	14,353
Manufacturing		16,208		15,406		15,525		15,349		14,841
Service providers		13,052		12,973		13,267		13,057		12,606
Real estate related (a)		10,729		10,554		10,248		10,274		10,616
Financial services (b)		4,927		5,177		5,326		4,740		4,356
Health care		8,690		8,266		8,228		7,912		7,763
Other industries (b)		19,242		19,436		19,144		18,169		18,505
Total commercial (c)		88,378		86,990		86,930		84,285		83,040
Commercial real estate
Real estate projects (d)		13,613		13,036		12,636		12,596		12,347
Commercial mortgage		7,578		7,095		6,355		6,183		6,308
Total commercial real estate		21,191		20,131		18,991		18,779		18,655
Equipment lease financing		7,576		7,314		7,349		7,240		7,247
Total commercial lending		117,145		114,435		113,270		110,304		108,942
Consumer
Home equity
Lines of credit		21,696		22,043		22,559		23,029		23,576
Installment		14,751		14,548		13,857		13,001		12,344
Credit card		4,425		4,242		4,135		4,081		4,303
Other consumer
Education		7,534		7,711		7,814		8,048		8,238
Automobile		10,827		10,259		9,066		8,716		8,708
Other		4,170		4,226		4,297		4,340		4,505
Total consumer		63,403		63,029		61,728		61,215		61,674
Residential real estate
Residential mortgage		14,418		14,709		14,051		14,217		14,430
Residential construction		647		683		726		768		810
Total residential real estate		15,065		15,392		14,777		14,985		15,240
Total consumer lending		78,468		78,421		76,505		76,200		76,914
Total loans (e)	$	195,613	$	192,856	$	189,775	$	186,504	$	185,856
(a) Includes loans to customers in the real estate and construction industries.
(b) Total commercial loans as of December 31, 2013 in the table above reflects a reclassification between Financial services and Other industries related to the wind down of Market Street Funding LLC. The corresponding loan balances as of September 30, 2013 were also reclassified to conform to the December 2013 presentation. There was no impact to periods prior to September 30, 2013.
(c) During the third quarter of 2013, PNC revised its policy to classify commercial loans initiated through a Special Purpose Entity (SPE) to be reported based upon the industry of the sponsor of the SPE. This resulted in a reclassification of loans amounting to $5.5 billion, $4.9 billion and $4.7 billion at June 30, 2013, March 31, 2013 and December 31, 2012, respectively, that were previously classified as Financial Services to other categories within Commercial Lending.
(d) Includes both construction loans and intermediate financing for projects.
(e) Includes purchased impaired loans:	$	6,105	$	6,398	$	6,778	$	7,073	$	7,406

Details of Loans Held for Sale (Unaudited)

In millions	December 31 2013		September 30 2013		June 30 2013		March 31 2013		December 31 2012
Commercial mortgage	$	867	$	785	$	1,072	$	895	$	1,392
Residential mortgage		1,356		1,613		2,353		2,331		2,220
Other		32		1		389		69		81
Total	$	2,255	$	2,399	$	3,814	$	3,295	$	3,693

Net Unfunded Commitments (Unaudited)

In millions	December 31 2013		September 30 2013		June 30 2013		March 31 2013		December 31 2012
Net unfunded commitments	$	129,870	$	126,577	$	124,142	$	121,812	$	120,592


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 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012
Beginning balance	$	3,691		$	3,772		$	3,828		$	4,036		$	4,039
Gross charge-offs:
Commercial		(87	)		(113	)		(81	)		(114	)		(126	)
Commercial real estate		(24	)		(42	)		(51	)		(86	)		(72	)
Equipment lease financing		(2	)		(2	)		(1	)		(3	)		(4	)
Home equity (a)		(114	)		(86	)		(92	)		(194	)		(141	)
Residential real estate (a)		(2	)		(9	)		(43	)		(79	)		(18	)
Credit card (a)		(42	)		(41	)		(45	)		(50	)		(43	)
Other consumer (a)		(52	)		(47	)		(43	)		(43	)		(56	)
Total gross charge-offs (b)		(323	)		(340	)		(356	)		(569	)		(460	)
Recoveries:
Commercial		65			54			66			63			77
Commercial real estate		23			24			33			13			29
Equipment lease financing		3			3			4			6			8
Home equity		18			18			24			13			15
Residential real estate		6			(2	)		1			(1	)
Credit card		5			6			6			5			9
Other consumer		14			13			14			14			12
Total recoveries		134			116			148			113			150
Net (charge-offs) recoveries:
Commercial		(22	)		(59	)		(15	)		(51	)		(49	)
Commercial real estate		(1	)		(18	)		(18	)		(73	)		(43	)
Equipment lease financing		1			1			3			3			4
Home equity		(96	)		(68	)		(68	)		(181	)		(126	)
Residential real estate		4			(11	)		(42	)		(80	)		(18	)
Credit card		(37	)		(35	)		(39	)		(45	)		(34	)
Other consumer		(38	)		(34	)		(29	)		(29	)		(44	)
Total net charge-offs		(189	)		(224	)		(208	)		(456	)		(310	)
Provision for credit losses		113			137			157			236			318
Other		1			(1	)		(1	)
Net change in allowance for unfunded loan commitments and letters of credit		(7	)		7			(4	)		12			(11	)
Ending balance	$	3,609		$	3,691		$	3,772		$	3,828		$	4,036
Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized) (b)		.39	%		.47	%		.44	%		.99	%		.67	%
Allowance for loan and lease losses to total loans		1.84			1.91			1.99			2.05			2.17
Commercial lending net charge-offs	$	(22	)	$	(76	)	$	(30	)	$	(121	)	$	(88	)
Consumer lending net charge-offs		(167	)		(148	)		(178	)		(335	)		(222	)
Total net charge-offs	$	(189	)	$	(224	)	$	(208	)	$	(456	)	$	(310	)
Net charge-offs to average loans
Commercial lending		.08	%		.27	%		.11	%		.45	%		.33	%
Consumer lending		.85			.76			.93			1.78			1.15

(a)

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

(b)

Pursuant to alignment with interagency guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, additional charge-offs of $134 million were taken. Excluding the impact of these additional charge-offs, annualized net charge-offs to average loans for the first quarter 2013 was 0.70%.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit


Three months ended - in millions	December 31 2013		September 30 2013			June 30 2013		March 31 2013			December 31 2012
Beginning balance	$	235	$	242		$	238	$	250		$	239
Net change in allowance for unfunded loan commitments and letters of credit		7		(7	)		4		(12	)		11
Ending balance	$	242	$	235		$	242	$	238		$	250


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

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

Accretion - Purchased Impaired Loans


	Three months ended									Year ended
In millions	December 31 2013			September 30 2013			December 31 2012			December 31 2013			December 31 2012
Impaired loans
Scheduled accretion	$	128		$	145		$	160		$	580		$	671
Reversal of contractual interest on impaired loans		(64	)		(82	)		(93	)		(314	)		(404	)
Scheduled accretion net of contractual interest		64			63			67			266			267
Excess cash recoveries		28			26			45			115			157
Total impaired loans	$	92		$	89		$	112		$	381		$	424

Purchased Impaired Loans - Accretable Yield


In millions
October 1, 2013	$	2,184		January 1, 2013	$	2,166		January 1, 2012	$	2,109
								Addition due to RBC Bank (USA) acquisition on March 2, 2012		587
Scheduled accretion		(128	)	Scheduled accretion		(580	)	Scheduled accretion		(671	)
Excess cash recoveries		(28	)	Excess cash recoveries		(115	)	Excess cash recoveries		(157	)
Net reclassifications to accretable from non-accretable and other activity		27		Net reclassifications to accretable from non-accretable and other activity (a)		584		Net reclassifications to accretable from non-accretable and other activity (a)		298
December 31, 2013 (b)	$	2,055		December 31, 2013 (b)	$	2,055		December 31, 2012	$	2,166
(a) Approximately 63% and 13% of the net reclassifications for the years ended December 31, 2013 and 2012, respectively, were driven by the consumer portfolio and were due to improvements of cash expected to be collected on both RBC Bank (USA) and National City loans in future periods. The remaining net reclassifications were predominantly due to future cash flow changes in the commercial portfolio.
(b) As of December 31, 2013, we estimate that the reversal of contractual interest on purchased impaired loans will total approximately $1.1 billion in future periods. This will offset the total net accretable interest in future interest income of $2.1 billion on purchased impaired loans.

Valuation of Purchased Impaired Loans


	December 31, 2013					September 30, 2013					December 31, 2012
Dollars in millions	Balance			Net Investment		Balance			Net Investment		Balance			Net Investment
Commercial and commercial real estate loans:
Unpaid principal balance	$	937				$	1,071				$	1,680
Purchased impaired mark		(264	)				(289	)				(431	)

Recorded investment		673					782					1,249
Allowance for loan losses		(133	)				(154	)				(239	)

Net investment		540			58%		628			59%		1,010			60	%

Consumer and residential mortgage loans:
Unpaid principal balance		5,548					5,805					6,639
Purchased impaired mark		(115	)				(189	)				(482	)

Recorded investment		5,433					5,616					6,157
Allowance for loan losses		(871	)				(907	)				(858	)

Net investment		4,562			82%		4,709			81%		5,299			80	%

Total purchased impaired loans:
Unpaid principal balance		6,485					6,876					8,319
Purchased impaired mark		(379	)				(478	)				(913	)

Recorded investment		6,106					6,398					7,406
Allowance for loan losses		(1,004	)				(1,061	)				(1,097	)

Net investment	$	5,102			79%	$	5,337			78%	$	6,309			76	%


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


In millions	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012
Nonperforming loans, including TDRs (a)
Commercial lending
Commercial
Retail/wholesale trade	$	57		$	72		$	63		$	62		$	61
Manufacturing		58			61			62			75			73
Service providers		108			109			110			112			124
Real estate related (b)		124			142			163			161			178
Financial services		7			11			14			13			9
Health care		19			26			24			21			25
Other industries		84			77			85			98			120
Total commercial		457			498			521			542			590
Commercial real estate
Real estate projects		436			493			516			606			654
Commercial mortgage		82			105			123			138			153
Total commercial real estate		518			598			639			744			807
Equipment lease financing		5			6			7			9			13
Total commercial lending		980			1,102			1,167			1,295			1,410
Consumer lending (c)
Home equity (d)		1,139			1,137			1,131			1,088			951
Residential real estate
Residential mortgage (d)		890			891			947			952			824
Residential construction		14			11			15			13			21
Credit card		4			4			4			6			5
Other consumer (d)		61			61			57			68			43
Total consumer lending (e)		2,108			2,104			2,154			2,127			1,844
Total nonperforming loans (f)		3,088			3,206			3,321			3,422			3,254
OREO and foreclosed assets
Other real estate owned (OREO) (g)		360			403			432			472			507
Foreclosed and other assets		9			13			25			33			33
Total OREO and foreclosed assets		369			416			457			505			540
Total nonperforming assets	$	3,457		$	3,622		$	3,778		$	3,927		$	3,794
Nonperforming loans to total loans		1.58	%		1.66	%		1.75	%		1.83	%		1.75	%
Nonperforming assets to total loans, OREO and foreclosed assets		1.76			1.87			1.99			2.10			2.04
Nonperforming assets to total assets		1.08			1.17			1.24			1.31			1.24
Allowance for loan and lease losses to nonperforming loans (h)		117			115			114			112			124

(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)

Pursuant to alignment with interagency guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, nonperforming home equity loans increased $214 million, nonperforming residential mortgage loans increased $187 million and nonperforming other consumer loans increased $25 million. Charge-offs were taken on these loans where the fair value less costs to sell the collateral was less than the recorded investment of the loan and were $134 million.

(e)

Pursuant to regulatory guidance issued in the third quarter of 2012, nonperforming consumer loans, primarily home equity and residential mortgage, increased $199 million in the fourth quarter of 2012 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 were 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.

(f)	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.

(g)

OREO excludes $245 million, $264 million, $311 million, $383 million and $380 million at December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012, 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).

(h)	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


In millions	October 1, 2013 - December 31, 2013			July 1, 2013 - September 30, 2013			April 1, 2013 - June 30, 2013			January 1, 2013 - March 31, 2013			October 1, 2012 - December 31, 2012
Beginning balance	$	3,622		$	3,778		$	3,927		$	3,794		$	4,021
New nonperforming assets		714			824			773			1,032			804
Charge-offs and valuation adjustments		(223	)		(220	)		(216	)		(343	)		(297	)
Principal activity, including paydowns and payoffs		(141	)		(289	)		(328	)		(258	)		(532	)
Asset sales and transfers to loans held for sale		(115	)		(117	)		(146	)		(114	)		(134	)
Returned to performing status		(400	)		(354	)		(232	)		(184	)		(68	)
Ending balance	$	3,457		$	3,622		$	3,778		$	3,927		$	3,794

Largest Individual Nonperforming Assets at December 31, 2013 (a)


In millions
Ranking	Outstandings		Industry
1	$	36	Real Estate, Rental and Leasing
2		16	Real Estate, Rental and Leasing
3		14	Construction
4		13	Real Estate, Rental and Leasing
5		11	Other Services
6		10	Real Estate, Rental and Leasing
7		10	Other Services
8		8	Real Estate, Rental and Leasing
9		8	Other Real Estate Owned
10		7	Construction
Total	$	133
As a percent of total nonperforming assets 4%

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

Summary of Troubled Debt Restructurings


	December 31		September 30		June 30		March 31		December 31
In millions	2013		2013		2013		2013		2012
Total consumer lending (a)	$	2,161	$	2,221	$	2,243	$	2,231	$	2,318
Total commercial lending		578		581		599		610		541
Total TDRs	$	2,739	$	2,802	$	2,842	$	2,841	$	2,859
Nonperforming	$	1,511	$	1,451	$	1,531	$	1,517	$	1,589
Accruing (b)		1,062		1,178		1,103		1,103		1,037
Credit card		166		173		208		221		233
Total TDRs	$	2,739	$	2,802	$	2,842	$	2,841	$	2,859

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 in the fourth quarter of 2012, 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. Charge-offs were 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.

(b)

Accruing loans have demonstrated a period of at least six months of current performance under the restructured terms and are excluded from nonperforming loans. Loans where borrowers have been discharged from bankruptcy and have not formally reaffirmed their loan obligation are generally not returned to accrual status.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Accruing Loans Past Due (Unaudited)

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


	Amount									Percent of Total Outstandings
Dollars in millions	Dec. 31 2013		Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012	Dec. 31 2013			Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012
Commercial	$	81	$	73	$	85	$	163	$ 115		.09	%		.08	%		.10	%		.19	%		.14	%
Commercial real estate		54		54		66		111	100		.25			.27			.35			.59			.54
Equipment lease financing		31		6		2		34	17		.41			.08			.03			.47			.23
Home equity		86		88		76		86	117		.24			.24			.21			.24			.33
Residential real estate
Non government insured		112		118		120		145	151		.74			.77			.81			.97			.99
Government insured		105		109		110		114	127		.70			.71			.74			.76			.83
Credit card		29		30		27		30	34		.66			.71			.65			.74			.79
Other consumer
Non government insured		62		56		52		49	65		.28			.25			.25			.23			.30
Government insured		154		170		148		162	193		.68			.77			.70			.77			.90
Total	$	714	$	704	$	686	$	894	$ 919		.37			.37			.36			.48			.49

Accruing Loans Past Due 60 to 89 Days (a) (b)

	Amount									Percent of Total Outstandings
Dollars in millions	Dec. 31 2013		Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012	Dec. 31 2013			Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012
Commercial	$	20	$	37	$	53	$	35	$ 55		.02	%		.04	%		.06	%		.04	%		.07	%
Commercial real estate		11		31		22		36	57		.05			.15			.12			.19			.31
Equipment lease financing		2		1		4		1	1		.03			.01			.05			.01			.01
Home equity		34		32		29		33	58		.09			.09			.08			.09			.16
Residential real estate
Non government insured		30		31		29		41	49		.20			.20			.20			.27			.32
Government insured		57		57		79		86	97		.38			.37			.53			.57			.64
Credit card		19		19		19		20	23		.43			.45			.46			.49			.53
Other consumer
Non government insured		18		18		14		15	21		.08			.08			.07			.07			.10
Government insured		94		106		100		86	110		.42			.48			.47			.41			.51
Total	$	285	$	332	$	349	$	353	$ 471		.15			.17			.18			.19			.25

Accruing Loans Past Due 90 Days or More (a) (b)

	Amount									Percent of Total Outstandings
Dollars in millions	Dec. 31 2013		Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012	Dec. 31 2013			Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012
Commercial	$	42	$	33	$	31	$	27	$ 42		.05	%		.04	%		.04	%		.03	%		.05	%
Commercial real estate		2		3				3	15		.01			.01						.02			.08
Equipment lease financing				2					2					.03									.03
Residential real estate
Non government insured		35		35		50		59	46		.23			.23			.34			.39			.30
Government insured		1,025		1,187		1,326		1,458	1,855		6.80			7.71			8.97			9.73			12.17
Credit card		34		31		33		35	36		.77			.73			.80			.86			.84
Other consumer
Non government insured		14		13		12		13	18		.06			.06			.06			.06			.08
Government insured		339		329		310		311	337		1.50			1.48			1.46			1.47			1.57
Total	$	1,491	$	1,633	$	1,762	$	1,906	$ 2,351		.76			.85			.93			1.02			1.26

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

(b)

Pursuant to alignment with interagency guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, accruing consumer loans past due 30 - 59 days decreased $44 million, accruing consumer loans past due 60—89 days decreased $36 million and accruing consumer loans past due 90 days or more decreased $315 million, of which $295 million related to residential real estate government insured loans. As part of this alignment, these loans were moved into 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, ATMs, call centers, online banking and mobile 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, 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 investment 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. 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 of FNMA, FHLMC, Federal Home Loan Banks and third-party investors, or are securitized and issued under the 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 loan applications are brokered by majority owned affiliates to others.

Non-Strategic 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. We hold an equity investment in BlackRock, which is a key component of our diversified revenue strategy. BlackRock is a publicly traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At December 31, 2013, our economic interest in BlackRock was 22%.

Period End Employees



	December 31 2013		September 30 2013		June 30 2013		March 31 2013		December 31 2012
Full-time employees
Retail Banking		22,226		22,192		22,476		22,985		23,331
Other full-time employees (a)		27,695		27,973		27,975		27,957		27,616
Total full-time employees		49,921		50,165		50,451		50,942		50,947
Part-time employees
Retail Banking		4,030		4,194		4,394		4,496		4,563
Other part-time employees (a)		482		575		935		734		775
Total part-time employees		4,512		4,769		5,329		5,230		5,338
Total		54,433		54,934		55,780		56,172		56,285

(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.


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		September 30		June 30		March 31		December 31			December 31		December 31
Income (Loss)	2013		2013		2013		2013		2012			2013		2012
Retail Banking (c)	$	107	$	165	$	158	$	120	$	121		$	550	$	596
Corporate & Institutional Banking		569		542		612		541		649			2,264		2,328
Asset Management Group		36		47		36		43		34			162		145
Residential Mortgage Banking (d)		55		28		20		45		(192	)		148		(308	)
Non-Strategic Assets Portfolio		118		121		60		79		59			379		237
Other, including BlackRock (b) (e)		176		136		237		176		48			724		3
Net income	$	1,061	$	1,039	$	1,123	$	1,004	$	719		$	4,227	$	3,001
Revenue
Retail Banking (c)	$	1,500	$	1,563	$	1,554	$	1,483	$	1,677		$	6,100	$	6,328
Corporate & Institutional Banking		1,389		1,356		1,420		1,341		1,576			5,506		5,697
Asset Management Group		269		262		254		255		247			1,040		973
Residential Mortgage Banking (d)		327		254		228		291		58			1,100		526
Non-Strategic Assets Portfolio		167		181		175		219		218			742		843
Other, including BlackRock (b) (e)		421		304		433		366		293			1,524		1,145
Total revenue	$	4,073	$	3,920	$	4,064	$	3,955	$	4,069		$	16,012	$	15,512

(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.

(b)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our 2013 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 second and third quarters of 2013 and the third and fourth quarters of 2012. For more information, refer to Selected Noninterest Income Information on page 7.

(d)	Includes benefit/provision for residential mortgage repurchase obligations. For more information, refer to Selected Noninterest Income 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, private equity investments, 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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Retail Banking (Unaudited) (a)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions	2013			2013			2013			2013			2012			2013			2012
INCOME STATEMENT
Net interest income	$	1,012		$	1,006		$	1,012		$	1,049		$	1,081		$	4,079		$	4,316
Noninterest income
Service charges on deposits		151			149			141			129			143			570			547
Brokerage		57			57			58			52			48			224			189
Consumer services		256			234			229			216			220			935			838
Other		24			117			114			37			185			292			438
Total noninterest income		488			557			542			434			596			2,021			2,012
Total revenue		1,500			1,563			1,554			1,483			1,677			6,100			6,328
Provision for credit losses		195			152			148			162			280			657			800
Noninterest expense		1,138			1,151			1,156			1,131			1,206			4,576			4,586
Pretax earnings		167			260			250			190			191			867			942
Income taxes		60			95			92			70			70			317			346
Earnings	$	107		$	165		$	158		$	120		$	121		$	550		$	596
AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	29,588		$	29,477		$	29,212		$	28,913		$	28,920		$	29,300		$	28,321
Indirect auto		8,671			7,971			7,314			7,006			6,718			7,746			5,467
Indirect other		822			877			939			1,000			1,063			909			1,174
Education		7,680			7,818			7,982			8,220			8,370			7,923			8,878
Credit cards		4,250			4,148			4,061			4,108			4,138			4,142			4,063
Other		2,157			2,152			2,141			2,141			2,145			2,148			2,039
Total consumer		53,168			52,443			51,649			51,388			51,354			52,168			49,942
Commercial and commercial real estate		11,131			11,299			11,345			11,290			11,266			11,266			11,198
Floor plan		2,226			1,931			2,048			2,014			1,915			2,055			1,788
Residential mortgage		676			715			767			811			862			741			946
Total loans		67,201			66,388			65,809			65,503			65,397			66,230			63,874
Goodwill and other intangible assets		6,083			6,105			6,127			6,148			6,174			6,116			6,123
Other assets		2,730			2,722			2,580			2,465			2,565			2,625			2,576
Total assets	$	76,014		$	75,215		$	74,516		$	74,116		$	74,136		$	74,971		$	72,573
Deposits
Noninterest-bearing demand	$	21,699		$	21,349		$	21,187		$	20,744		$	20,900		$	21,248		$	20,179
Interest-bearing demand		32,298			31,748			32,004			31,183			29,526			31,811			28,007
Money market		49,250			48,939			48,645			48,291			47,859			48,784			46,578
Total transaction deposits		103,247			102,036			101,836			100,218			98,285			101,843			94,764
Savings		10,901			10,900			10,997			10,537			10,068			10,835			9,751
Certificates of deposit		20,425			21,050			21,823			22,683			23,531			21,488			25,715
Total deposits		134,573			133,986			134,656			133,438			131,884			134,166			130,230
Other liabilities		369			364			343			273			285			337			340
Total liabilities	$	134,942		$	134,350		$	134,999		$	133,711		$	132,169		$	134,503		$	130,570
PERFORMANCE RATIOS
Return on average assets		.56	%		.87	%		.85	%		.66	%		.65	%		.73	%		.82	%
Noninterest income to total revenue		33			36			35			29			36			33			32
Efficiency		76			74			74			76			72			75			72

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

Retail Banking (Unaudited) (Continued)


	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions, except as noted	2013			2013			2013			2013			2012			2013			2012
OTHER INFORMATION (a)								.
Credit-related statistics:
Commercial nonperforming assets	$	208		$	212		$	222		$	230		$	245
Consumer nonperforming assets		1,077			1,074			1,068			1,050			902
Total nonperforming assets	$	1,285		$	1,286		$	1,290		$	1,280		$	1,147
Purchased impaired loans (b)	$	692		$	718		$	750		$	788		$	819
Commercial lending net charge-offs	$	13		$	17		$	22		$	37		$	34		$	89		$	119
Credit card lending net charge-offs		37			35			39			45			35			156			174
Consumer lending (excluding credit card) net charge-offs		118			91			91			168			148			468			521
Total net charge-offs	$	168		$	143		$	152		$	250		$	217		$	713		$	814
Commercial lending annualized net charge-off ratio		.39	%		.51	%		.66	%		1.13	%		1.03	%		.67	%		.92	%
Credit card lending annualized net charge-off ratio		3.45	%		3.35	%		3.85	%		4.44	%		3.36	%		3.77	%		4.28	%
Consumer lending (excluding credit card) annualized net charge-off ratio (c)		.94	%		.74	%		.75	%		1.42	%		1.22	%		.96	%		1.11	%
Total annualized net charge-off ratio (c)		.99	%		.85	%		.93	%		1.55	%		1.32	%		1.08	%		1.27	%
Home equity portfolio credit statistics: (d)
% of first lien positions at origination (e)		52	%		52	%		50	%		48	%		42	%
Weighted-average loan-to-value ratios (LTVs) (e) (f)		81	%		83	%		85	%		85	%		81	%
Weighted-average updated FICO scores (g)		745			745			745			743			742
Annualized net charge-off ratio (d)		1.06	%		.75	%		.82	%		1.97	%		1.35	%		1.14	%		1.22	%
Delinquency data: (h)
Loans 30 - 59 days past due		.20	%		.22	%		.20	%		.23	%		.42	%
Loans 60 - 89 days past due		.09	%		.09	%		.08	%		.10	%		.22	%
Total accruing loans past due		.29	%		.32	%		.28	%		.33	%		.64	%
Nonperforming loans		3.15	%		3.13	%		3.12	%		3.01	%		2.64	%
Other statistics:
ATMs		7,445			7,441			7,335			7,303			7,282
Branches (i)		2,714			2,724			2,780			2,856			2,881
Brokerage account assets (billions)	$	41		$	40		$	39		$	39		$	38
Customer-related statistics: (in thousands)
Retail Banking checking relationships		6,648			6,658			6,589			6,534			6,475
Retail online banking active customers		4,592			4,534			4,271			4,234			4,227
Retail online bill payment active customers		1,293			1,285			1,270			1,260			1,236

(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)	Ratios for the three months ended March 31, 2013 and year ended December 31, 2013 include additional consumer charge-offs taken as a result of alignment with interagency guidance on practices for loans and lines of credit we implemented in the first quarter of 2013.

(d)	Lien position, LTV and FICO statistics are based upon customer balances.

(e)	Lien positions and LTV calculations at December 31, 2013, September 30, 2013, June 30, 2013 and March 31, 2013 reflect the use of revised assumptions where data is missing.

(f)	LTV statistics are based upon current information.

(g)	Represents FICO scores that are updated at least quarterly.

(h)

Data based upon recorded investment. Past due amounts exclude purchased impaired loans, even if contractually past due, as we are currently accreting interest income over the expected life of the loans. 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.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Corporate & Institutional Banking (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
INCOME STATEMENT
Net interest income	$	960		$	945		$	943		$	956		$	1,057		$	3,804		$	4,099
Noninterest income
Corporate service fees		277			277			297			246			324			1,097			1,030
Other		152			134			180			139			195			605			568
Noninterest income		429			411			477			385			519			1,702			1,598
Total revenue		1,389			1,356			1,420			1,341			1,576			5,506			5,697
Provision for credit losses (benefit)		(29)			30			(40)			14			9			(25)			-
Noninterest expense		525			495			499			480			549			1,999			2,028
Pretax earnings		893			831			961			847			1,018			3,532			3,669
Income taxes		324			289			349			306			369			1,268			1,341
Earnings	$	569		$	542		$	612		$	541		$	649		$	2,264		$	2,328
AVERAGE BALANCE SHEET
Loans
Commercial	$	74,199		$	72,753		$	72,202		$	69,817		$	67,444		$	72,256		$	63,480
Commercial real estate		18,938			17,830			17,002			16,876			16,517			17,668			15,768
Equipment lease financing		6,749			6,610			6,655			6,552			6,272			6,642			5,997
Total commercial lending		99,886			97,193			95,859			93,245			90,233			96,566			85,245
Consumer		1,032			801			876			1,083			1,092			947			821
Total loans		100,918			97,994			96,735			94,328			91,325			97,513			86,066
Goodwill and other intangible assets		3,841			3,848			3,775			3,752			3,724			3,804			3,656
Loans held for sale		893			975			968			1,236			1,190			1,017			1,222
Other assets		9,746			9,750			10,729			12,355			12,842			10,636			12,018
Total assets	$	115,398		$	112,567		$	112,207		$	111,671		$	109,081		$	112,970		$	102,962
Deposits
Noninterest-bearing demand	$	43,482		$	42,053		$	39,910		$	40,572		$	40,607		$	41,514		$	38,337
Money market		20,579			18,099			16,932			17,023			16,500			18,168			15,590
Other		7,609			6,992			6,914			6,979			6,842			7,124			6,108
Total deposits		71,670			67,144			63,756			64,574			63,949			66,806			60,035
Other liabilities		8,207			13,932			17,059			18,779			19,107			14,465			17,969
Total liabilities	$	79,877		$	81,076		$	80,815		$	83,353		$	83,056		$	81,271		$	78,004
PERFORMANCE RATIOS
Return on average assets		1.96	%		1.91	%		2.19	%		1.96	%		2.37	%		2.00	%		2.26	%
Noninterest income to total revenue		31			30			34			29			33			31			28
Efficiency		38			37			35			36			35			36			36

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19

Corporate & Institutional Banking (Unaudited) (Continued) (a)


	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	298		$	294		$	290		$	282		$	265		$	282		$	267
Acquisitions/additions		26			18			18			21			35			83			64
Repayments/transfers		(16	)		(14	)		(14	)		(13	)		(18	)		(57	)		(49	)
End of period	$	308		$	298		$	294		$	290		$	282		$	308		$	282
OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management (c)	$	309		$	309		$	313		$	329		$	337		$	1,260		$	1,380
Capital Markets (d)	$	220		$	175		$	196		$	131		$	228		$	722		$	710
Commercial mortgage loans held for sale (e)	$	37		$	27		$	31		$	38		$	44		$	133		$	104
Commercial mortgage loan servicing income, net of amortization (f)		60			60			53			53			57			226			195
Commercial mortgage servicing rights (impairment)/recovery, net of economic hedge (g)		(5	)		18			44			11			16			68			31
Total commercial mortgage banking activities	$	92		$	105		$	128		$	102		$	117		$	427		$	330
Average Loans (by C&IB business)
Corporate Banking	$	51,689		$	50,844		$	50,678		$	49,241		$	47,522		$	50,620		$	44,945
Real Estate		24,333			22,622			21,361			20,790			19,861			22,287			18,418
Business Credit		12,182			11,726			11,611			11,181			10,893			11,678			10,083
Equipment Finance		10,095			10,035			10,034			9,811			9,438			9,994			9,035
Other		2,619			2,767			3,051			3,305			3,611			2,934			3,585
Total average loans		100,918			97,994			96,735			94,328			91,325			97,513			86,066
Total loans (h)	$	101,773		$	99,337		$	97,708		$	94,843		$	93,721
Net carrying amount of commercial mortgage servicing rights (h)	$	549		$	541		$	525		$	452		$	420
Credit-related statistics:
Nonperforming assets (h)	$	804		$	949		$	999		$	1,082		$	1,181
Purchased impaired loans (h) (i)	$	515		$	600		$	708		$	768		$	875
Net charge-offs (recoveries)	$	10		$	56		$	(19	)	$	58		$	34		$	105		$	142

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

(b)	Represents consolidated PNC amounts. Our 2013 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 other noninterest income for valuations on commercial mortgage loans held for sale and related commitments, derivative valuations, origination fees, and gains on sale of loans held for sale and net interest income on loans held for sale.

(f)

Includes net interest income and noninterest income, primarily in corporate services fees, 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 (impairment)/recovery, net of economic hedge is shown separately.

(g)	Includes amounts reported in corporate service fees.

(h)	Presented as of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 20

Asset Management Group (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
INCOME STATEMENT
Net interest income	$	71		$	74		$	70		$	73		$	74		$	288		$	297
Noninterest income		198			188			184			182			173			752			676
Total revenue		269			262			254			255			247			1,040			973
Provision for credit losses (benefit)		8			(4	)		1			5			(2	)		10			11
Noninterest expense		204			192			195			183			195			774			732
Pretax earnings		57			74			58			67			54			256			230
Income taxes		21			27			22			24			20			94			85
Earnings	$	36		$	47		$	36		$	43		$	34		$	162		$	145
AVERAGE BALANCE SHEET
Loans
Consumer	$	5,248		$	5,107		$	4,947		$	4,793		$	4,671		$	5,025		$	4,416
Commercial and commercial real estate		1,057			1,049			1,042			1,037			1,021			1,047			1,076
Residential mortgage		778			784			772			772			706			776			695
Total loans		7,083			6,940			6,761			6,602			6,398			6,848			6,187
Goodwill and other intangible assets		281			289			298			306			315			293			329
Other assets		230			216			230			223			226			225			219
Total assets	$	7,594		$	7,445		$	7,289		$	7,131		$	6,939		$	7,366		$	6,735
Deposits
Noninterest-bearing demand	$	1,442		$	1,220		$	1,249		$	1,331		$	1,573		$	1,311		$	1,462
Interest-bearing demand		3,547			3,329			3,475			3,616			3,009			3,491			2,746
Money market		3,760			3,693			3,722			3,841			3,562			3,754			3,553
Total transaction deposits		8,749			8,242			8,446			8,788			8,144			8,556			7,761
CDs/IRAs/savings deposits		427			431			441			454			461			438			491
Total deposits		9,176			8,673			8,887			9,242			8,605			8,994			8,252
Other liabilities		61			62			58			60			65			60			68
Total liabilities	$	9,237		$	8,735		$	8,945		$	9,302		$	8,670		$	9,054		$	8,320
PERFORMANCE RATIOS
Return on average assets		1.88	%		2.50	%		1.98	%		2.45	%		1.95	%		2.20	%		2.15	%
Noninterest income to total revenue		74			72			72			71			70			72			69
Efficiency		76			73			77			72			79			74			75
OTHER INFORMATION
Total nonperforming assets (b)	$	75		$	68		$	69		$	65		$	69
Purchased impaired loans (b) (c)	$	99		$	100		$	102		$	105		$	109
Total net charge-offs (recoveries)	$	3		$	(7	)	$	2		$	3		$	2		$	1		$	6
ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	111		$	106		$	112		$	112		$	107
Institutional		136			131			121			124			117
Total	$	247		$	237		$	233		$	236		$	224
Asset Type
Equity	$	142		$	132		$	130		$	130		$	120
Fixed income		70			70			70			70			69
Liquidity/Other		35			35			33			36			35
Total	$	247		$	237		$	233		$	236		$	224
Discretionary assets under management
Personal	$	83		$	80		$	78		$	77		$	73
Institutional		44			42			39			41			39
Total	$	127		$	122		$	117		$	118		$	112
Asset Type
Equity	$	70		$	65		$	62		$	62		$	56
Fixed income		39			40			39			39			39
Liquidity/Other		18			17			16			17			17
Total	$	127		$	122		$	117		$	118		$	112
Nondiscretionary assets under administration
Personal	$	28		$	26		$	34		$	35		$	34
Institutional		92			89			82			83			78
Total	$	120		$	115		$	116		$	118		$	112
Asset Type
Equity	$	72		$	67		$	68		$	68		$	64
Fixed income		31			30			31			31			30
Liquidity/Other		17			18			17			19			18
Total	$	120		$	115		$	116		$	118		$	112

(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 21

Residential Mortgage Banking (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
INCOME STATEMENT
Net interest income	$	49		$	46		$	51		$	48		$	53		$	194		$	209
Noninterest income
Loan servicing revenue
Servicing fees		56			40			37			41			48			174			205
Net MSR hedging gains		1			57			26			37			2			121			119
Loan sales revenue
Benefit / (provision) for residential mortgage repurchase obligations		124			6			(73	)		(4	)		(254	)		53			(761	)
Loan sales revenue		98			108			190			172			213			568			747
Other		(1	)		(3	)		(3	)		(3	)		(4	)		(10	)		7
Total noninterest income		278			208			177			243			5			906			317
Total revenue		327			254			228			291			58			1,100			526
Provision for credit losses (benefit)		(3	)		-			4			20			2			21			(5	)
Noninterest expense		243			210			192			200			333			845			992
Pretax earnings (loss)		87			44			32			71			(277	)		234			(461	)
Income taxes (benefit)		32			16			12			26			(85	)		86			(153	)
Earnings (loss)	$	55		$	28		$	20		$	45		$	(192	)	$	148		$	(308	)
AVERAGE BALANCE SHEET
Portfolio loans	$	2,219		$	2,334		$	2,403		$	2,553		$	2,559		$	2,376		$	2,719
Loans held for sale		1,340			2,104			2,106			2,038			1,832			1,896			1,758
Mortgage servicing rights (MSR)		1,066			1,068			849			764			620			938			632
Other assets		4,458			3,811			5,049			5,448			6,120			4,686			6,420
Total assets	$	9,083		$	9,317		$	10,407		$	10,803		$	11,131		$	9,896		$	11,529
Deposits	$	2,388		$	2,936		$	3,260		$	3,106		$	3,286		$	2,920		$	2,560
Borrowings and other liabilities		3,553			2,316			3,216			3,487			3,729			3,142			4,086
Total liabilities	$	5,941		$	5,252		$	6,476		$	6,593		$	7,015		$	6,062		$	6,646
PERFORMANCE RATIOS
Return on average assets		2.40	%		1.19	%		.77	%		1.69	%		(6.86	)%		1.50	%		(2.67	)%
Noninterest income to total revenue		85			82			78			84			9			82			60
Efficiency		74			83			84			69			574			77			189
RESIDENTIAL MORTGAGE SERVICING PORTFOLIO - SERVICED FOR THIRD PARTIES (in billions)
Beginning of period	$	115		$	116		$	120		$	119		$	119		$	119		$	118
Acquisitions		2			2						6			6			10			21
Additions		3			4			4			4			4			15			14
Repayments/transfers		(6	)		(7	)		(8	)		(9	)		(10	)		(30	)		(34	)
End of period	$	114		$	115		$	116		$	120		$	119		$	114		$	119
Servicing portfolio - third-party statistics: (b)
Fixed rate		93	%		92	%		92	%		92	%		92	%
Adjustable rate/balloon		7	%		8	%		8	%		8	%		8	%
Weighted-average interest rate		4.59	%		4.63	%		4.72	%		4.80	%		4.94	%
MSR capitalized value (in billions)	$	1.1		$	1.1		$	1.0		$	.8		$	.7
MSR capitalization value (in basis points)		95			90			84			65			54
Weighted-average servicing fee (in basis points)		28			28			28			28			28
RESIDENTIAL MORTGAGE REPURCHASE RESERVE
Beginning of period	$	471		$	523		$	522		$	614		$	421		$	614		$	83
(Benefit) / Provision		(124	)		(6	)		73			4			254			(53	)		761
RBC Bank (USA) acquisition																				26
Agency settlements		(191	)														(191	)
Losses - loan repurchases		(25	)		(46	)		(72	)		(96	)		(61	)		(239	)		(256	)
End of period	$	131		$	471		$	523		$	522		$	614		$	131		$	614
OTHER INFORMATION
Loan origination volume (in billions)	$	2.5		$	3.7		$	4.7		$	4.2		$	4.4		$	15.1		$	15.2
Loan sale margin percentage		3.96	%		2.92	%		4.04	%		4.07	%		4.87	%		3.76	%		4.92	%
Percentage of originations represented by:
Agency and government programs		100	%		99	%		100	%		100	%		100	%		99	%		100	%
Purchase volume (c)		41	%		38	%		28	%		19	%		20	%		30	%		23	%
Refinance volume		59	%		62	%		72	%		81	%		80	%		70	%		77	%
Total nonperforming assets (b)	$	189		$	205		$	220		$	236		$	134
Purchased impaired loans (b) (d)	$	(12	)	$	(2	)	$	8		$	24		$	38

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

(b)	As of period end.

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 22

Non-Strategic Assets Portfolio (Unaudited) (a)


	Three months ended															Year ended
Dollars in millions	December 31 2013			September 30 2013			June 30 2013			March 31 2013			December 31 2012			December 31 2013			December 31 2012
INCOME STATEMENT
Net interest income	$	161		$	161		$	164		$	203		$	197		$	689		$	830
Noninterest income		6			20			11			16			21			53			13
Total revenue		167			181			175			219			218			742			843
Provision for credit losses (benefit)		(59	)		(43	)		39			42			52			(21	)		181
Noninterest expense		39			33			41			52			73			163			287
Pretax earnings		187			191			95			125			93			600			375
Income taxes		69			70			35			46			34			221			138
Earnings	$	118		$	121		$	60		$	79		$	59		$	379		$	237
AVERAGE BALANCE SHEET
Commercial Lending:
Commercial/Commercial real estate	$	246		$	319		$	437		$	537		$	720		$	382		$	894
Lease financing		678			686			694			688			684			687			677
Total commercial lending		924			1,005			1,131			1,225			1,404			1,069			1,571
Consumer Lending:
Home equity		3,764			3,935			4,122			4,158			4,325			3,993			4,584
Residential real estate		5,312			5,496			5,709			5,938			6,130			5,613			6,259
Total consumer lending		9,076			9,431			9,831			10,096			10,455			9,606			10,843
Total portfolio loans		10,000			10,436			10,962			11,321			11,859			10,675			12,414
Other assets (b)		(757	)		(735	)		(672	)		(586	)		(481	)		(688	)		(364	)
Total assets	$	9,243		$	9,701		$	10,290		$	10,735		$	11,378		$	9,987		$	12,050
Deposits and other liabilities	$	236		$	261		$	275		$	168		$	186		$	236		$	183
Total liabilities	$	236		$	261		$	275		$	168		$	186		$	236		$	183
PERFORMANCE RATIOS
Return on average assets		5.06	%		4.95	%		2.34	%		2.98	%		2.06	%		3.79	%		1.97	%
Noninterest income to total revenue		4			11			6			7			10			7			2
Efficiency		23			18			23			24			33			22			34
OTHER INFORMATION
Nonperforming assets (c)	$	834		$	863		$	935		$	999		$	999
Purchased impaired loans (c) (d)	$	4,797		$	4,966		$	5,193		$	5,372		$	5,547
Net charge-offs	$	9		$	23		$	53		$	87		$	60		$	172		$	299
Annualized net charge-off ratio		.36	%		.87	%		1.94	%		3.12	%		2.01	%		1.61	%		2.41	%
LOANS (c)
Commercial Lending:
Commercial/Commercial real estate	$	236		$	270		$	388		$	493		$	665
Lease financing		680			675			696			690			686
Total commercial lending		916			945			1,084			1,183			1,351
Consumer Lending:
Home equity		3,692			3,844			4,029			4,209			4,237
Residential real estate		5,267			5,434			5,659			5,880			6,093
Total consumer lending		8,959			9,278			9,688			10,089			10,330
Total loans	$	9,875		$	10,223		$	10,772		$	11,272		$	11,681

(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 23

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.

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

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

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

Basel I 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 Basel I Tier 1 risk-based capital purposes.

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

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

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

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 revenue derived from 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 net of economic hedge), 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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 24

Core net interest income - Core net interest income is 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 increases 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.

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.

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 25

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.

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

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

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

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

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

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

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

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 before income taxes and noncontrolling interests.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 26

Primary client relationship - A corporate banking client relationship with annual revenue generation of $10,000 to $50,000 or more, and for Asset Management Group, a client relationship with annual revenue generation of $10,000 or more.

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.

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.

Total equity - Total shareholders’ equity plus noncontrolling interests.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 27

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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