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

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EX-99.2 - EX-99.2 - PNC FINANCIAL SERVICES GROUP, INC.	d741965dex992.htm
8-K - FORM 8-K - PNC FINANCIAL SERVICES GROUP, INC.	d741965d8k.htm

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2014

(UNAUDITED)


	Page
Consolidated Results:

Income Statement		1
Balance Sheet		2
Capital Ratios		3
Selected Noninterest Income Information		3
Average Balance Sheet		4-5
Details of Net Interest Margin		6
Total and Core Net Interest Income and Net Interest Margin		7
Per Share Related Information		8
Impact to 2013 Periods from Adoption of ASU 2014-01 (Investments in Low Income Housing Tax Credits)		8
Loans, Loans Held for Sale and Net Unfunded Loan Commitments		9
Allowances for Credit Losses		10
Purchase Accounting Accretion, Accretable Yield and Valuation of Purchased Impaired Loans		11
Nonperforming Assets and Troubled Debt Restructurings		12-13
Accruing Loans Past Due		14

Business Segment Results:

Descriptions		15
Period End Employees		15
Income and Revenue		16
Retail Banking		17-18
Corporate & Institutional Banking		19-20
Asset Management Group		21
Residential Mortgage Banking		22
Non-Strategic Assets Portfolio		23
Glossary of Terms		24-28

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on July 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															Six months ended
In millions, except per share data	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
Interest Income
Loans	$	1,845		$	1,899		$	1,949		$	1,933		$	1,955		$	3,744		$	3,984
Investment securities		412			427			434			423			422			839			892
Other		99			84			96			92			92			183			204
Total interest income		2,356			2,410			2,479			2,448			2,469			4,766			5,080
Interest Expense
Deposits		80			78			81			84			86			158			179
Borrowed funds		147			137			132			130			125			284			254
Total interest expense		227			215			213			214			211			442			433
Net interest income		2,129			2,195			2,266			2,234			2,258			4,324			4,647
Noninterest Income
Asset management		362			364			364			330			340			726			648
Consumer services		323			290			327			316			314			613			610
Corporate services (a)		343			301			301			306			326			644			603
Residential mortgage (b)		182			161			271			199			167			343			401
Service charges on deposits		156			147			158			156			147			303			283
Net gains (losses) on sales of securities		(6	)		10			3			21			61			4			75
Net other-than-temporary impairments (c)		(1	)		(2	)		-			(2	)		(4	)		(3	)		(14	)
Other (d)		322			311			383			360			455			633			766
Total noninterest income		1,681			1,582			1,807			1,686			1,806			3,263			3,372
Total revenue		3,810			3,777			4,073			3,920			4,064			7,587			8,019
Provision For Credit Losses		72			94			113			137			157			166			393
Noninterest Expense
Personnel		1,172			1,080			1,207			1,181			1,186			2,252			2,355
Occupancy		199			218			211			205			206			417			417
Equipment		204			201			197			194			189			405			372
Marketing		68			52			66			68			67			120			112
Other (e)		685			713			833			746			757			1,398			1,517
Total noninterest expense		2,328			2,264			2,514			2,394			2,405			4,592			4,773
Income before income taxes and noncontrolling interests		1,410			1,419			1,446			1,389			1,502			2,829			2,853
Income taxes (e)		358			359			372			361			387			717			743
Net income		1,052			1,060			1,074			1,028			1,115			2,112			2,110
Less: Net income (loss) attributable to noncontrolling interests (e)		3			(2	)		13			2			4			1			(4	)
Preferred stock dividends and discount accretion and redemptions		48			70			50			71			53			118			128
Net income attributable to common shareholders	$	1,001		$	992		$	1,011		$	955		$	1,058		$	1,993		$	1,986
Earnings Per Common Share
Basic	$	1.88		$	1.86		$	1.90		$	1.80		$	2.00		$	3.73		$	3.75
Diluted	$	1.85		$	1.82		$	1.87		$	1.77		$	1.98		$	3.67		$	3.72
Average Common Shares Outstanding
Basic		532			532			530			529			528			532			527
Diluted		539			539			535			534			531			539			530
Efficiency		61	%		60	%		62	%		61	%		59	%		61	%		60	%
Noninterest income to total revenue		44	%		42	%		44	%		43	%		44	%		43	%		42	%
Effective tax rate (f)		25.4	%		25.3	%		25.7	%		26.0	%		25.8	%		25.3	%		26.0	%

For additional information regarding footnotes (a), (b) and (d) below, refer to Selected Noninterest Income Statement Information on page 3.

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

(b)	Includes benefit/provision for residential mortgage repurchase obligations.

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

(d)	Includes gains on sales of Visa Class B common shares and credit valuations for customer-related derivatives activities.

(e)	Amounts for 2013 periods have been updated to reflect the first quarter 2014 adoption of Accounting Standards Update (ASU) 2014-01 related to investments in low income housing tax credits.

(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	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013
Assets
Cash and due from banks (a)	$	4,892		$	4,723		$	4,043		$	4,908		$	4,051
Federal funds sold and resale agreements (b)		1,526			1,143			1,986			911			1,613
Trading securities		2,228			2,381			3,073			1,603			2,109
Interest-earning deposits with banks (a) (c)		16,876			14,877			12,135			8,047			3,797
Loans held for sale (b)		2,228			2,102			2,255			2,399			3,814
Investment securities		56,602			58,644			60,294			57,260			57,449
Loans (a) (b)		200,984			198,242			195,613			192,856			189,775
Allowance for loan and lease losses (a)		(3,453	)		(3,530	)		(3,609	)		(3,691	)		(3,772	)
Net loans		197,531			194,712			192,004			189,165			186,003
Goodwill		9,074			9,074			9,074			9,074			9,075
Other intangible assets		1,997			2,115			2,216			2,194			2,153
Equity investments (a) (d) (e)		10,583			10,337			10,560			10,178			9,945
Other (a) (b)		23,527			23,315			22,552			22,733			24,297
Total assets	$	327,064		$	323,423		$	320,192		$	308,472		$	304,306
Liabilities
Deposits
Noninterest-bearing	$	71,001		$	70,063		$	70,306		$	68,747		$	66,708
Interest-bearing		151,553			152,319			150,625			147,327			145,571
Total deposits		222,554			222,382			220,931			216,074			212,279
Borrowed funds
Federal funds purchased and repurchase agreements		3,132			3,233			4,289			3,165			4,303
Federal Home Loan Bank borrowings		15,023			13,911			12,912			8,479			8,481
Bank notes and senior debt		14,102			13,861			12,603			11,924			11,177
Subordinated debt		9,099			8,289			8,244			7,829			7,113
Commercial paper (a)		4,999			4,923			4,997			6,994			6,400
Other (a) (b)		2,711			2,589			3,060			1,882			2,390
Total borrowed funds		49,066			46,806			46,105			40,273			39,864
Allowance for unfunded loan commitments and letters of credit		232			228			242			235			242
Accrued expenses (a) (e)		4,753			4,808			4,690			4,621			4,012
Other (a)		4,666			4,281			4,187			4,522			6,032
Total liabilities		281,271			278,505			276,155			265,725			262,429

Equity
Preferred stock (f)
Common stock - $5 par value
Authorized 800 shares, issued 540, 540, 540, 539 and 539 shares		2,703			2,700			2,698			2,695			2,693
Capital surplus - preferred stock		3,944			3,943			3,941			3,940			3,939
Capital surplus - common stock and other		12,506			12,394			12,416			12,310			12,234
Retained earnings (e)		24,755			24,010			23,251			22,474			21,752
Accumulated other comprehensive income (loss)		881			656			436			47			45
Common stock held in treasury at cost: 8, 6, 7, 7 and 8 shares		(584	)		(382	)		(408	)		(423	)		(453	)
Total shareholders’ equity		44,205			43,321			42,334			41,043			40,210
Noncontrolling interests (e)		1,588			1,597			1,703			1,704			1,667
Total equity		45,793			44,918			44,037			42,747			41,877
Total liabilities and equity	$	327,064		$	323,423		$	320,192		$	308,472		$	304,306

(a)	Amounts include consolidated variable interest entities. Our first quarter 2014 Form 10-Q included, and our second quarter 2014 Form 10-Q will include, additional information regarding these items.

(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our first quarter 2014 Form 10-Q included, and our second quarter 2014 Form 10-Q will include, additional information regarding these items.

(c)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $16.5 billion, $14.5 billion, $11.7 billion, $7.6 billion and $3.3 billion as of June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, respectively.

(d)	Amounts include our equity interest in BlackRock.

(e)	Amounts for 2013 periods have been updated to reflect the first quarter 2014 adoption of ASU 2014-01 related to investments in low income housing tax credits.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Capital Ratios (Unaudited)



	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013
Transitional Basel III (a) (b) (c)
Common equity Tier 1 (d)		11.0	%		10.8	%		N/A			N/A			N/A
Tier 1 risk-based		12.7			12.6			N/A			N/A			N/A
Total capital risk-based		16.1			15.8			N/A			N/A			N/A
Leverage		11.2			11.1			N/A			N/A			N/A
Basel 1 Ratios (e)
Tier 1 common		N/A			N/A			10.5	%		10.3	%		10.1	%
Tier 1 risk-based		N/A			N/A			12.4			12.3			12.0
Total risk-based		N/A			N/A			15.8			15.6			15.2
Leverage		N/A			N/A			11.1			11.1			10.9
Common shareholders’ equity to assets		12.3			12.2			12.0			12.0			11.9

(a)	The ratios as of June 30, 2014 are estimated.

(b)	Calculated using the regulatory capital methodology applicable to PNC during 2014.

(c)

See Capital Ratios discussion in the Banking Regulation and Supervision section of Item 1 Business in our 2013 Form 10-K and in the consolidated balance sheet review section in our first quarter 2014 Form 10-Q. Our second quarter 2014 Form 10-Q will include additional discussion on these capital ratios.

(d)	The Basel III common equity Tier 1 capital ratio was previously referred to as the Basel III Tier 1 common capital ratio.

(e)	Ratios for the 2013 periods have not been updated to reflect the first quarter 2014 adoption of ASU 2014-01 related to investments in low income housing tax credits.

Selected Noninterest Income Information (Unaudited)


	Three months ended															Six months ended
In millions, except per share data	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
Increase (Decrease) to Noninterest Income and Impact on Diluted Earnings per Share
Commercial mortgage servicing rights valuation, net of economic hedge
Pretax	$	14		$	11		$	(5	)	$	18		$	44		$	25		$	55
After-tax	$	9		$	7		$	(3	)	$	11		$	29		$	16		$	36
Impact on diluted earnings per share (a)	$	.02		$	.01		$	(.01	)	$	.02		$	.05		$	.03		$	.07

Benefit / (provision) for residential mortgage repurchase obligations
Pretax	$	(2	)	$	19		$	124		$	6		$	(73	)	$	17		$	(77	)
After-tax	$	(1	)	$	12		$	81		$	4		$	(48	)	$	11		$	(50	)
Impact on diluted earnings per share (a)	$	(.00	)	$	.02		$	.15		$	.01		$	(.09	)	$	.02		$	(.09	)

Net gains (losses) on sales of securities
Pretax	$	(6	)	$	10		$	3		$	21		$	61		$	4		$	75
After-tax	$	(4	)	$	7		$	2		$	13		$	40		$	3		$	49
Impact on diluted earnings per share (a)	$	(.01	)	$	.01		$	.00		$	.02		$	.08		$	.00		$	.09

Gains on sales of Visa Class B common shares
Pretax	$	54		$	62					$	85		$	83		$	116		$	83
After-tax	$	35		$	40					$	55		$	54		$	75		$	54
Impact on diluted earnings per share (a)	$	.07		$	.07					$	.10		$	.10		$	.14		$	.10

Credit valuations for customer-related derivatives activities
Pretax	$	(4	)	$	(14	)	$	16		$	(1	)	$	39		$	(18	)	$	41
After-tax	$	(3	)	$	(9	)	$	11		$	-		$	25		$	(12	)	$	26
Impact on diluted earnings per share (a)	$	(.00	)	$	(.02	)	$	.02		$	(.00	)	$	.05		$	(.02	)	$	.05

(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 4

Average Consolidated Balance Sheet (Unaudited) (a)


	Three months ended															Six months ended
In millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	20,326		$	21,823		$	22,327		$	23,674		$	24,339		$	21,070		$	24,751
Non-agency		5,204			5,375			5,539			5,862			5,889			5,290			5,957
Commercial mortgage-backed		4,176			4,474			4,460			4,349			3,855			4,324			3,800
Asset-backed		5,400			5,593			5,814			5,962			5,919			5,496			5,826
U.S. Treasury and government agencies		4,883			4,169			2,507			2,013			2,074			4,528			2,393
State and municipal		2,104			2,652			2,275			2,354			2,182			2,376			2,186
Other debt		2,028			2,505			2,523			2,630			2,728			2,265			2,689
Corporate stocks and other		362			409			359			339			304			386			335
Total securities available for sale		44,483			47,000			45,804			47,183			47,290			45,735			47,937
Securities held to maturity
Residential mortgage-backed		5,977			5,995			5,726			3,794			3,833			5,986			3,988
Commercial mortgage-backed		2,560			2,748			3,153			3,276			3,521			2,654			3,634
Asset-backed		990			1,004			1,047			1,064			978			997			902
U.S. Treasury and government agencies		242			240			238			236			233			241			232
State and municipal		1,732			1,055			1,056			658			640			1,395			640
Other		331			337			341			346			349			334			350
Total securities held to maturity		11,832			11,379			11,561			9,374			9,554			11,607			9,746
Total investment securities		56,315			58,379			57,365			56,557			56,844			57,342			57,683
Loans
Commercial		91,866			89,517			88,185			86,456			86,015			90,698			84,752
Commercial real estate		22,775			21,652			20,587			19,558			18,860			22,217			18,855
Equipment lease financing		7,564			7,470			7,428			7,296			7,350			7,517			7,296
Consumer		62,472			63,093			63,203			62,277			61,587			62,781			61,499
Residential real estate		14,556			14,849			15,180			14,918			14,794			14,701			14,957
Total loans		199,233			196,581			194,583			190,505			188,606			197,914			187,359
Interest-earning deposits with banks		14,650			12,157			10,455			4,626			2,063			13,410			2,236
Loans held for sale		2,060			1,949			2,225			3,071			3,072			2,005			3,175
Federal funds sold and resale agreements		1,184			1,416			864			664			1,141			1,299			1,159
Other		4,927			5,296			4,993			4,183			4,376			5,111			4,529
Total interest-earning assets		278,369			275,778			270,485			259,606			256,102			277,081			256,141
Noninterest-earning assets:
Allowance for loan and lease losses		(3,512	)		(3,591	)		(3,667	)		(3,761	)		(3,821	)		(3,551	)		(3,879	)
Cash and due from banks		3,776			3,890			3,904			3,984			3,869			3,832			3,961
Other		43,887			43,485			43,346			43,371			45,783			43,687			46,423
Total assets	$	322,520		$	319,562		$	314,068		$	303,200		$	301,933		$	321,049		$	302,646

(a)	Calculated using average daily balances.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

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


	Three months ended										Six months ended
In millions	June 30 2014		March 31 2014		December 31 2013		September 30 2013		June 30 2013		June 30 2014		June 30 2013
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	74,261	$	74,034	$	73,534	$	70,557	$	69,123	$	74,148	$	69,063
Demand		43,316		42,635		41,151		39,866		40,172		42,977		39,774
Savings		11,976		11,408		11,010		11,007		11,124		11,694		10,899
Retail certificates of deposit		20,012		20,538		21,138		21,859		22,641		20,274		23,062
Time deposits in foreign offices and other time		2,168		2,069		2,013		1,804		2,164		2,119		2,216
Total interest-bearing deposits		151,733		150,684		148,846		145,093		145,224		151,212		145,014
Borrowed funds
Federal funds purchased and repurchase agreements		3,343		4,250		4,120		2,967		4,132		3,794		4,229
Federal Home Loan Bank borrowings		14,193		13,100		11,348		8,208		7,218		13,649		7,437
Bank notes and senior debt		13,490		13,327		12,252		11,256		10,886		13,409		10,679
Subordinated debt		8,570		8,040		7,900		7,334		7,003		8,307		7,125
Commercial paper		4,917		4,931		5,297		7,109		7,263		4,923		7,613
Other		2,591		2,740		2,156		1,792		2,099		2,665		2,078
Total borrowed funds		47,104		46,388		43,073		38,666		38,601		46,747		39,161
Total interest-bearing liabilities		198,837		197,072		191,919		183,759		183,825		197,959		184,175
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		68,219		67,679		68,193		66,834		64,749		67,951		64,800
Allowance for unfunded loan commitments and letters of credit		228		241		236		242		238		235		244
Accrued expenses and other liabilities		10,035		10,123		10,622		10,327		10,890		10,078		11,370
Equity		45,201		44,447		43,098		42,038		42,231		44,826		42,057
Total liabilities and equity	$	322,520	$	319,562	$	314,068	$	303,200	$	301,933	$	321,049	$	302,646
(a) Calculated using average daily balances. Supplemental Average Balance Sheet Information (Unaudited)
Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	151,733	$	150,684	$	148,846	$	145,093	$	145,224	$	151,212	$	145,014
Noninterest-bearing deposits		68,219		67,679		68,193		66,834		64,749		67,951		64,800
Total deposits	$	219,952	$	218,363	$	217,039	$	211,927	$	209,973	$	219,163	$	209,814

Transaction deposits	$	185,796	$	184,348	$	182,878	$	177,257	$	174,044	$	185,076	$	173,637

Common shareholders’ equity	$	39,659	$	38,838	$	37,455	$	36,406	$	36,244	$	39,250	$	35,911


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Details of Net Interest Margin (Unaudited) (a)


	Three months ended															Six months ended
	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency		2.71	%		2.61	%		2.68	%		2.36	%		2.50	%		2.66	%		2.70	%
Non-agency		5.19			4.91			5.14			5.70			5.51			5.05			5.46
Commercial mortgage-backed		3.40			3.81			3.83			3.82			4.00			3.61			4.01
Asset-backed		1.96			1.79			1.92			1.87			1.80			1.87			1.86
U.S. Treasury and government agencies		1.20			1.30			1.36			1.90			1.37			1.25			1.53
State and municipal		4.27			4.78			4.31			4.24			4.48			4.56			4.71
Other debt		2.35			2.39			2.30			2.38			2.39			2.38			2.48
Corporate stocks and other		.11			.10			.15			.12			.14			.11			.13
Total securities available for sale		2.84			2.86			2.96			2.91			2.93			2.86			3.05
Securities held to maturity
Residential mortgage-backed		3.55			3.55			3.42			3.92			3.26			3.55			3.35
Commercial mortgage-backed		3.76			4.09			4.28			4.29			4.34			3.93			4.53
Asset-backed		1.54			1.51			1.57			1.59			1.74			1.53			1.76
U.S. Treasury and government agencies		3.80			3.77			3.82			3.81			3.80			3.79			3.78
State and municipal		5.47			5.61			5.65			5.55			4.27			5.52			4.25
Other		2.87			3.00			4.20			2.90			2.89			2.94			2.86
Total securities held to maturity		3.69			3.68			3.72			3.86			3.57			3.69			3.70
Total investment securities		3.02			3.02			3.11			3.06			3.04			3.02			3.16

Loans
Commercial		3.24			3.50			3.53			3.62			3.71			3.37			3.87
Commercial real estate		4.04			4.20			4.50			4.64			4.84			4.12			4.94
Equipment lease financing		3.61			3.64			3.74			3.75			4.41			3.62			4.23
Consumer		4.16			4.26			4.29			4.31			4.40			4.21			4.54
Residential real estate		4.86			5.09			5.18			5.00			5.13			4.98			5.21
Total loans		3.75			3.95			4.02			4.06			4.19			3.85			4.32
Interest-earning deposits with banks		.27			.23			.26			.22			.28			.25			.26
Loans held for sale		4.79			4.71			5.40			5.34			4.22			4.75			5.39
Federal funds sold and resale agreements		.49			.32			.79			1.10			.61			.40			.68
Other		5.26			4.02			4.51			4.54			5.26			4.62			5.02
Total yield on interest-earning assets		3.44			3.58			3.69			3.79			3.91			3.51			4.03

Rate on interest-bearing liabilities
Interest-bearing deposits
Money market		.18			.17			.18			.18			.18			.18			.19
Demand		.05			.05			.05			.05			.05			.05			.05
Savings		.10			.08			.08			.10			.10			.09			.10
Retail certificates of deposit		.74			.75			.76			.79			.82			.75			.84
Time deposits in foreign offices and other time		.17			.18			.17			.22			.43			.17			.52
Total interest-bearing deposits		.21			.21			.22			.23			.24			.21			.25

Borrowed funds
Federal funds purchased and repurchase agreements		.07			.11			.14			.15			.14			.09			.15
Federal Home Loan Bank borrowings		.50			.50			.48			.48			.53			.50			.57
Bank notes and senior debt		1.51			1.49			1.51			1.71			1.71			1.50			1.77
Subordinated debt		2.65			2.54			2.63			2.89			2.78			2.59			2.81
Commercial paper		.29			.28			.26			.22			.22			.28			.23
Other		2.60			2.20			2.44			2.91			2.62			2.40			2.45
Total borrowed funds		1.24			1.18			1.21			1.33			1.28			1.21			1.29
Total rate on interest-bearing liabilities		.45			.44			.44			.46			.46			.45			.47
Interest rate spread		2.99			3.14			3.25			3.33			3.45			3.06			3.56
Impact of noninterest-bearing sources		.13			.12			.13			.14			.13			.13			.13
Net interest margin		3.12	%		3.26	%		3.38	%		3.47	%		3.58	%		3.19	%		3.69	%

(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 June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, were $47 million, $46 million, $45 million, $43 million and $40 million, respectively. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2014 and June 30, 2013 were $93 million and $80 million, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

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

Total and Core Net Interest Income


	Three months ended															Six months ended
In millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
Core net interest income (a)	$	1,982		$	2,032		$	2,075		$	2,035		$	2,054		$	4,014		$	4,194
Total purchase accounting accretion (a) (b)		147			163			191			199			204			310			453
Total net interest income	$	2,129		$	2,195		$	2,266		$	2,234		$	2,258		$	4,324		$	4,647
(a) We believe that core net interest income, a non-GAAP measure, and purchase accounting accretion are useful in evaluating the components of total 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 11 for details for certain of these periods.

Details of Net Interest Margin (c)

	Three months ended															Six months ended
In millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
Average yields/rates
Yield on interest-earning assets
Total investment securities		3.02	%		3.02	%		3.11	%		3.06	%		3.04	%		3.02	%		3.16	%
Total loans		3.75			3.95			4.02			4.06			4.19			3.85			4.32
Other		1.76			1.62			2.05			2.96			3.50			1.69			3.71
Total yield on interest-earning assets		3.44			3.58			3.69			3.79			3.91			3.51			4.03

Rate on interest-bearing liabilities
Total interest-bearing deposits		.21			.21			.22			.23			.24			.21			.25
Total borrowed funds		1.24			1.18			1.21			1.33			1.28			1.21			1.29
Total rate on interest-bearing liabilities		.45			.44			.44			.46			.46			.45			.47

Interest rate spread		2.99			3.14			3.25			3.33			3.45			3.06			3.56
Impact of noninterest-bearing sources		.13			.12			.13			.14			.13			.13			.13
Net interest margin		3.12	%		3.26	%		3.38	%		3.47	%		3.58	%		3.19	%		3.69	%
(c) See note (a) on page 6.

Details of Core Net Interest Margin (d)

	Three months ended															Six months ended
In millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
Average yields/rates
Yield on interest-earning assets
Total investment securities		2.96	%		2.96	%		3.02	%		2.96	%		2.95	%		2.96	%		3.08	%
Total loans		3.46			3.62			3.65			3.68			3.77			3.54			3.86
Other		1.74			1.64			1.99			2.74			3.69			1.69			3.44
Total yield on interest-earning assets		3.22			3.33			3.40			3.48			3.58			3.27			3.67

Rate on interest-bearing liabilities
Total interest-bearing deposits		.23			.23			.24			.26			.27			.23			.28
Total borrowed funds		1.10			1.04			1.06			1.18			1.12			1.07			1.10
Total rate on interest-bearing liabilities		.43			.43			.43			.45			.45			.43			.45

Interest rate spread		2.79			2.90			2.97			3.03			3.13			2.84			3.22
Impact of noninterest-bearing sources		.13			.12			.13			.14			.13			.13			.13
Core net interest margin		2.92			3.02			3.10			3.17			3.26			2.97			3.35
Purchase accounting accretion impact on net interest margin		.20			.24			.28			.30			.32			.22			.34
Net interest margin		3.12	%		3.26	%		3.38	%		3.47	%		3.58	%		3.19	%		3.69	%

(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 8

Per Share Related Information (Unaudited)


	Three months ended											Six months ended
In millions, except per share data	June 30 2014		March 31 2014			December 31 2013		September 30 2013		June 30 2013		June 30 2014		June 30 2013
Basic
Net income	$	1,052	$	1,060		$	1,074	$	1,028	$	1,115	$	2,112	$	2,110
Less:
Net income (loss) attributable to noncontrolling interests		3		(2	)		13		2		4		1		(4	)
Preferred stock dividends and discount accretion and redemptions		48		70			50		71		53		118		128

Net income attributable to common shareholders		1,001		992			1,011		955		1,058		1,993		1,986
Less:
Dividends and undistributed earnings allocated to nonvested restricted shares		3		3			5		4		5		6		9

Net income attributable to basic common shares	$	998	$	989		$	1,006	$	951	$	1,053	$	1,987	$	1,977
Basic weighted-average common shares outstanding		532		532			530		529		528		532		527
Basic earnings per common share	$	1.88	$	1.86		$	1.90	$	1.80	$	2.00	$	3.73	$	3.75
Diluted
Net income attributable to basic common shares	$	998	$	989		$	1,006	$	951	$	1,053	$	1,987	$	1,977
Less: Impact of BlackRock earnings per share dilution		3		6			5		4		4		9		9

Net income attributable to diluted common shares	$	995	$	983		$	1,001	$	947	$	1,049	$	1,978	$	1,968
Basic weighted-average common shares outstanding		532		532			530		529		528		532		527
Dilutive potential common shares		7		7			5		5		3		7		3

Diluted weighted-average common shares outstanding		539		539			535		534		531		539		530
Diluted earnings per common share	$	1.85	$	1.82		$	1.87	$	1.77	$	1.98	$	3.67	$	3.72

Impact to 2013 Periods from Adoption of ASU 2014-01 (Investments in Low Income Housing Tax Credits) (Unaudited) (a)

Income Statement


	Three months ended									Six months ended
In millions	December 31 2013			September 30 2013			June 30 2013			June 30 2013
Noninterest Expense
Previously reported	$	2,547		$	2,424		$	2,435		$	4,830
Adjustment from adoption of ASU 2014-01		(33	)		(30	)		(30	)		(57	)
Revised	$	2,514		$	2,394		$	2,405		$	4,773
Net Income
Previously reported	$	1,061		$	1,039		$	1,123		$	2,127
Adjustment from adoption of ASU 2014-01		13			(11	)		(8	)		(17	)
Revised	$	1,074		$	1,028		$	1,115		$	2,110
Diluted Earnings per Share
Previously reported	$	1.85		$	1.79		$	1.99		$	3.76
Adjustment from adoption of ASU 2014-01		.02			(.02	)		(.01	)		(.04	)
Revised	$	1.87		$	1.77		$	1.98		$	3.72
Efficiency
Previously reported		63	%		62	%		60	%		60	%
Adjustment from adoption of ASU 2014-01		(1	)		(1	)		(1	)
Revised		62	%		61	%		59	%		60	%
Effective Tax Rate
Previously reported		24.9	%		23.5	%		23.7	%		23.9	%
Adjustment from adoption of ASU 2014-01		.8			2.5			2.1			2.1
Revised		25.7	%		26.0	%		25.8	%		26.0	%

Balance Sheet

In millions	December 31 2013			September 30 2013			June 30 2013
Retained Earnings
Previously reported	$	23,325		$	22,561		$	21,828
Adjustment from adoption of ASU 2014-01		(74	)		(87	)		(76	)
Revised	$	23,251		$	22,474		$	21,752

(a)	We adopted the guidance in ASU 2014-01, Investments - Equity Method and Joint Ventures (Topic 323): Accounting For Investments in Qualified Affordable Housing Projects in the first quarter of 2014. Retrospective application is required.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

Details of Loans (Unaudited)


In millions	June 30 2014		March 31 2014		December 31 2013		September 30 2013		June 30 2013
Commercial
Retail/wholesale trade	$	16,146	$	16,157	$	15,530	$	15,178	$	15,192
Manufacturing		18,683		17,185		16,208		15,406		15,525
Service providers		13,734		13,576		13,052		12,973		13,267
Real estate related (a)		10,908		10,856		10,729		10,554		10,248
Financial services (b)		4,846		4,720		4,927		5,177		5,326
Health care		8,939		8,836		8,690		8,266		8,228
Other industries (b)		20,280		19,771		19,242		19,436		19,144
Total commercial (c)		93,536		91,101		88,378		86,990		86,930
Commercial real estate
Real estate projects (d)		14,535		14,268		13,613		13,036		12,636
Commercial mortgage		8,384		7,883		7,578		7,095		6,355
Total commercial real estate		22,919		22,151		21,191		20,131		18,991
Equipment lease financing		7,628		7,521		7,576		7,314		7,349
Total commercial lending		124,083		120,773		117,145		114,435		113,270
Consumer
Home equity
Lines of credit		20,959		21,277		21,696		22,043		22,559
Installment		14,507		14,595		14,751		14,548		13,857
Credit card		4,435		4,309		4,425		4,242		4,135
Other consumer
Education		7,118		7,360		7,534		7,711		7,814
Automobile		11,005		10,906		10,827		10,259		9,066
Other		4,317		4,216		4,170		4,226		4,297
Total consumer		62,341		62,663		63,403		63,029		61,728
Residential real estate
Residential mortgage		13,965		14,179		14,418		14,709		14,051
Residential construction		595		627		647		683		726
Total residential real estate		14,560		14,806		15,065		15,392		14,777
Total consumer lending		76,901		77,469		78,468		78,421		76,505
Total loans (e)	$	200,984	$	198,242	$	195,613	$	192,856	$	189,775
(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 at June 30, 2013, 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:	$	5,557	$	5,824	$	6,106	$	6,398	$	6,778

Details of Loans Held for Sale (Unaudited)

In millions	June 30 2014		March 31 2014		December 31 2013		September 30 2013		June 30 2013
Commercial mortgage	$	900	$	732	$	867	$	785	$	1,072
Residential mortgage		1,271		1,088		1,356		1,613		2,353
Other		57		282		32		1		389
Total	$	2,228	$	2,102	$	2,255	$	2,399	$	3,814

Net Unfunded Loan Commitments (Unaudited)

In millions	June 30 2014		March 31 2014		December 31 2013		September 30 2013		June 30 2013
Net unfunded loan commitments	$	131,446	$	129,644	$	129,870	$	126,577	$	124,142


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

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	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013
Beginning balance	$	3,530		$	3,609		$	3,691		$	3,772		$	3,828
Gross charge-offs:
Commercial		(86	)		(85	)		(87	)		(113	)		(81	)
Commercial real estate		(14	)		(18	)		(24	)		(42	)		(51	)
Equipment lease financing		(4	)		(2	)		(2	)		(2	)		(1	)
Home equity		(68	)		(95	)		(114	)		(86	)		(92	)
Residential real estate		(7	)		(8	)		(2	)		(9	)		(43	)
Credit card		(42	)		(43	)		(42	)		(41	)		(45	)
Other consumer		(43	)		(49	)		(52	)		(47	)		(43	)
Total gross charge-offs		(264	)		(300	)		(323	)		(340	)		(356	)
Recoveries:
Commercial		43			51			65			54			66
Commercial real estate		29			20			23			24			33
Equipment lease financing		3			3			3			3			4
Home equity		20			19			18			18			24
Residential real estate		3			(1	)		6			(2	)		1
Credit card		6			5			5			6			6
Other consumer		15			17			14			13			14
Total recoveries		119			114			134			116			148
Net (charge-offs) recoveries:
Commercial		(43	)		(34	)		(22	)		(59	)		(15	)
Commercial real estate		15			2			(1	)		(18	)		(18	)
Equipment lease financing		(1	)		1			1			1			3
Home equity		(48	)		(76	)		(96	)		(68	)		(68	)
Residential real estate		(4	)		(9	)		4			(11	)		(42	)
Credit card		(36	)		(38	)		(37	)		(35	)		(39	)
Other consumer		(28	)		(32	)		(38	)		(34	)		(29	)
Total net charge-offs		(145	)		(186	)		(189	)		(224	)		(208	)
Provision for credit losses		72			94			113			137			157
Other					(1	)		1			(1	)		(1	)
Net change in allowance for unfunded loan commitments and letters of credit		(4	)		14			(7	)		7			(4	)
Ending balance	$	3,453		$	3,530		$	3,609		$	3,691		$	3,772
Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		.29	%		.38	%		.39	%		.47	%		.44	%
Allowance for loan and lease losses to total loans		1.72			1.78			1.84			1.91			1.99
Commercial lending net charge-offs	$	(29	)	$	(31	)	$	(22	)	$	(76	)	$	(30	)
Consumer lending net charge-offs		(116	)		(155	)		(167	)		(148	)		(178	)
Total net charge-offs	$	(145	)	$	(186	)	$	(189	)	$	(224	)	$	(208	)
Net charge-offs to average loans
Commercial lending		.10	%		.11	%		.08	%		.27	%		.11	%
Consumer lending		.60			.81			.85			.76			.93

Change in Allowance for Unfunded Loan Commitments and Letters of Credit
Three months ended - in millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013
Beginning balance	$	228		$	242		$	235		$	242		$	238
Net change in allowance for unfunded loan commitments and letters of credit		4			(14	)		7			(7	)		4
Ending balance	$	232		$	228		$	242		$	235		$	242


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

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

Accretion - Purchased Impaired Loans


	Three months ended									Six months ended
In millions	June 30 2014			March 31 2014			June 30 2013			June 30 2014			June 30 2013
Impaired loans
Scheduled accretion	$	120		$	125		$	150		$	245		$	307
Reversal of contractual interest on impaired loans		(70	)		(68	)		(83	)		(138	)		(168	)
Scheduled accretion net of contractual interest		50			57			67			107			139
Excess cash recoveries		35			29			11			64			61
Total impaired loans	$	85		$	86		$	78		$	171		$	200

Purchased Impaired Loans - Accretable Yield


In millions
April 1, 2014	$	1,988		January 1, 2014	$	2,055
Scheduled accretion		(120	)	Scheduled accretion		(245	)
Excess cash recoveries		(35	)	Excess cash recoveries		(64	)
Net reclassifications to accretable from non-accretable and other activity (a)		103		Net reclassifications to accretable from non-accretable and other activity (a)		190
June 30, 2014 (b)	$	1,936		June 30, 2014 (b)	$	1,936

(a)

63% and 78% of the net reclassifications for the second quarter and first six months of 2014, 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 June 30, 2014, 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 $1.9 billion on purchased impaired loans.

Valuation of Purchased Impaired Loans


	June 30, 2014						March 31, 2014						December 31, 2013
Dollars in millions	Balance			Net Investment			Balance			Net Investment			Balance			Net Investment
Commercial and commercial real estate loans:
Outstanding balance	$	676					$	799					$	937
Purchased impaired mark		(197	)					(230	)					(264	)

Recorded investment		479						569						673
Allowance for loan losses		(108	)					(123	)					(133	)

Net investment		371			55	%		446			56	%		540			58	%

Consumer and residential mortgage loans:
Outstanding balance		5,120						5,345						5,548
Purchased impaired mark		(42	)					(90	)					(115	)

Recorded investment		5,078						5,255						5,433
Allowance for loan losses		(778	)					(825	)					(871	)

Net investment		4,300			84	%		4,430			83	%		4,562			82	%

Total purchased impaired loans:
Outstanding balance		5,796						6,144						6,485
Purchased impaired mark		(239	)					(320	)					(379	)

Recorded investment		5,557						5,824						6,106
Allowance for loan losses		(886	)					(948	)					(1,004	)

Net investment	$	4,671			81	%	$	4,876			79	%	$	5,102			79	%


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


In millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013
Nonperforming loans, including TDRs (a)
Commercial lending
Commercial
Retail/wholesale trade	$	70		$	49		$	57		$	72		$	63
Manufacturing		69			63			58			61			62
Service providers		94			90			108			109			110
Real estate related (b)		79			122			124			142			163
Financial services		5			5			7			11			14
Health care		23			17			19			26			24
Other industries		54			91			84			77			85
Total commercial		394			437			457			498			521
Commercial real estate
Real estate projects		370			401			436			493			516
Commercial mortgage		65			79			82			105			123
Total commercial real estate		435			480			518			598			639
Equipment lease financing		4			6			5			6			7
Total commercial lending		833			923			980			1,102			1,167
Consumer lending (c)
Home equity		1,093			1,117			1,139			1,137			1,131
Residential real estate
Residential mortgage		799			829			890			891			947
Residential construction		17			13			14			11			15
Credit card		3			4			4			4			4
Other consumer		56			61			61			61			57
Total consumer lending		1,968			2,024			2,108			2,104			2,154
Total nonperforming loans (d)		2,801			2,947			3,088			3,206			3,321
OREO and foreclosed assets
Other real estate owned (OREO) (e)		352			343			360			403			432
Foreclosed and other assets		15			14			9			13			25
Total OREO and foreclosed assets		367			357			369			416			457
Total nonperforming assets	$	3,168		$	3,304		$	3,457		$	3,622		$	3,778
Nonperforming loans to total loans		1.39	%		1.49	%		1.58	%		1.66	%		1.75	%
Nonperforming assets to total loans, OREO and foreclosed assets		1.57			1.66			1.76			1.87			1.99
Nonperforming assets to total assets		.97			1.02			1.08			1.17			1.24
Allowance for loan and lease losses to nonperforming loans (f)		123			120			117			115			114

(a)	See analysis of troubled debt restructurings (TDRs) on page 13.

(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)	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.

(e)

OREO excludes $228 million, $238 million, $245 million, $264 million and $311 million at June 30, 2014, March 31, 2014, December 31, 2013, September 30, 2013 and June 30, 2013, respectively, related to residential real estate that was acquired by us upon foreclosure of serviced loans as they are insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA) or guaranteed by the department of Housing and Urban Development.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Details of Nonperforming Assets and Troubled Debt Restructurings (Unaudited)

Change in Nonperforming Assets (a)


In millions	April 1, 2014 - June 30, 2014			January 1, 2014 - March 31, 2014			October 1, 2013 - Dec. 31, 2013			July 1, 2013 - September 30, 2013			April 1, 2013 - June 30, 2013
Beginning balance	$	3,304		$	3,457		$	3,622		$	3,778		$	3,927
New nonperforming assets		644			633			836			863			773
Charge-offs and valuation adjustments		(148	)		(152	)		(223	)		(220	)		(216	)
Principal activity, including paydowns and payoffs		(300	)		(323	)		(556	)		(483	)		(328	)
Asset sales and transfers to loans held for sale		(212	)		(85	)		(115	)		(117	)		(146	)
Returned to performing status		(120	)		(226	)		(107	)		(199	)		(232	)
Ending balance	$	3,168		$	3,304		$	3,457		$	3,622		$	3,778

(a)

In the third and fourth quarters of 2013, amounts related to (i) New nonperforming assets, (ii) Principal activity, including paydowns and payoffs, and (iii) Returned to performing status were misstated. The original reported amounts for third quarter 2013 were (i) $824 million, (ii) ($289) million, and (iii) ($354) million respectively and for the fourth quarter 2013 (i) $714 million, (ii) ($141) million and (iii) ($400) million respectively. These updates did not impact the beginning or ending nonperforming asset balances and are corrected in the table.

Largest Individual Nonperforming Assets at June 30, 2014 (a)


In millions
Ranking	Outstandings		Industry
1	$	36	Real Estate, Rental and Leasing
2		21	Wholesale Trade
3		15	Real Estate, Rental and Leasing
4		15	Manufacturing
5		14	Mining, Quarrying, Oil and Gas
6		13	Manufacturing
7		12	Professional, Scientific and Technical
8		11	Other Services
9		10	Real Estate, Rental and Leasing
10		8	Real Estate, Rental and Leasing
Total	$	155
As a percent of total nonperforming assets 5%

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

Summary of Troubled Debt Restructurings


In millions	June 30 2014		March 31 2014		December 31 2013		September 30 2013		June 30 2013
Total consumer lending	$	2,121	$	2,134	$	2,161	$	2,221	$	2,243
Total commercial lending		546		579		578		581		599
Total TDRs	$	2,667	$	2,713	$	2,739	$	2,802	$	2,842
Nonperforming	$	1,369	$	1,405	$	1,511	$	1,451	$	1,531
Accruing (a)		1,153		1,151		1,062		1,178		1,103
Credit card		145		157		166		173		208
Total TDRs	$	2,667	$	2,713	$	2,739	$	2,802	$	2,842

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)

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 not returned to accrual status.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

Accruing Loans Past Due (Unaudited)

Accruing Loans Past Due 30 to 59 Days (a)


	Amount										Percent of Total Outstandings
Dollars in millions	Jun. 30 2014		Mar. 31 2014		Dec. 31 2013		Sept. 30 2013		Jun. 30 2013		Jun. 30 2014			Mar. 31 2014			Dec. 31 2013			Sept. 30 2013			Jun. 30 2013
Commercial	$	71	$	93	$	81	$	73	$	85		.08	%		.10	%		.09	%		.08	%		.10	%
Commercial real estate		17		35		54		54		66		.07			.16			.25			.27			.35
Equipment lease financing		4		17		31		6		2		.05			.23			.41			.08			.03
Home equity		65		76		86		88		76		.18			.21			.24			.24			.21
Residential real estate
Non government insured		87		101		112		118		120		.60			.68			.74			.77			.81
Government insured		74		82		105		109		110		.51			.55			.70			.71			.74
Credit card		26		26		29		30		27		.59			.60			.66			.71			.65
Other consumer
Non government insured		50		51		62		56		52		.22			.23			.28			.25			.25
Government insured		154		149		154		170		148		.69			.66			.68			.77			.70
Total	$	548	$	630	$	714	$	704	$	686		.27			.32			.37			.37			.36

Accruing Loans Past Due 60 to 89 Days (a)

	Amount										Percent of Total Outstandings
Dollars in millions	Jun. 30 2014		Mar. 31 2014		Dec. 31 2013		Sept. 30 2013		Jun. 30 2013		Jun. 30 2014			Mar. 31 2014			Dec. 31 2013			Sept. 30 2013			Jun. 30 2013
Commercial	$	26	$	20	$	20	$	37	$	53		.03	%		.02	%		.02	%		.04	%		.06	%
Commercial real estate		48		25		11		31		22		.21			.11			.05			.15			.12
Equipment lease financing		1				2		1		4		.01						.03			.01			.05
Home equity		27		32		34		32		29		.08			.09			.09			.09			.08
Residential real estate
Non government insured		21		27		30		31		29		.14			.18			.20			.20			.20
Government insured		48		43		57		57		79		.33			.29			.38			.37			.53
Credit card		18		19		19		19		19		.41			.44			.43			.45			.46
Other consumer
Non government insured		15		16		18		18		14		.07			.07			.08			.08			.07
Government insured		94		104		94		106		100		.42			.46			.42			.48			.47
Total	$	298	$	286	$	285	$	332	$	349		.15			.14			.15			.17			.18

Accruing Loans Past Due 90 Days or More (a)

	Amount										Percent of Total Outstandings
Dollars in millions	Jun. 30 2014		Mar. 31 2014		Dec. 31 2013		Sept. 30 2013		Jun. 30 2013		Jun. 30 2014			Mar. 31 2014			Dec. 31 2013			Sept. 30 2013			Jun. 30 2013
Commercial	$	35	$	28	$	42	$	33	$	31		.04	%		.03	%		.05	%		.04	%		.04	%
Commercial real estate						2		3										.01			.01
Equipment lease financing								2													.03
Residential real estate
Non government insured		23		30		35		35		50		.16			.20			.23			.23			.34
Government insured		872		924		1,025		1,187		1,326		5.99			6.24			6.80			7.71			8.97
Credit card		29		31		34		31		33		.65			.72			.77			.73			.80
Other consumer
Non government insured		12		13		14		13		12		.05			.06			.06			.06			.06
Government insured		281		284		339		329		310		1.25			1.26			1.50			1.48			1.46
Total	$	1,252	$	1,310	$	1,491	$	1,633	$	1,762		.62			.66			.76			.85			.93

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

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, Missouri, Georgia, Wisconsin and South Carolina.

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

Asset Management Group includes personal wealth management for high net worth and ultra high net worth clients and institutional asset management. Wealth management products and services include investment and retirement planning, customized investment management, private banking, tailored credit solutions, and trust management and administration for individuals and their families. Institutional asset management provides investment management, custody administration 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 first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint. 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.

Non-Strategic Assets Portfolio includes a consumer portfolio of mainly residential mortgage and brokered home equity loans and lines of credit and a small commercial/commercial real estate 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 investors 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 June 30, 2014, our economic interest in BlackRock was 22%.

Period End Employees



	June 30 2014		March 31 2014		December 31 2013		September 30 2013		June 30 2013
Full-time employees
Retail Banking		22,148		22,104		22,226		22,192		22,476
Other full-time employees (a)		27,765		27,740		27,695		27,973		27,975
Total full-time employees		49,913		49,844		49,921		50,165		50,451
Part-time employees
Retail Banking		3,644		3,761		4,030		4,194		4,394
Other part-time employees (a)		802		510		482		575		935
Total part-time employees		4,446		4,271		4,512		4,769		5,329
Total		54,359		54,115		54,433		54,934		55,780

(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 16

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


	Three months ended											Six months ended
In millions Income (Loss)	June 30 2014		March 31 2014			December 31 2013		September 30 2013		June 30 2013		June 30 2014		June 30 2013
Retail Banking (c)	$	225	$	158		$	107	$	165	$	158	$	383	$	278
Corporate & Institutional Banking		470		523			569		542		612		993		1,153
Asset Management Group		53		37			36		47		36		90		79
Residential Mortgage Banking (d)		36		(4	)		55		28		20		32		65
Non-Strategic Assets Portfolio		99		110			118		121		60		209		139
Other, including BlackRock (b) (e)		169		236			189		125		229		405		396
Net income	$	1,052	$	1,060		$	1,074	$	1,028	$	1,115	$	2,112	$	2,110
Revenue
Retail Banking (c)	$	1,514	$	1,494		$	1,500	$	1,563	$	1,554	$	3,008	$	3,037
Corporate & Institutional Banking		1,348		1,298			1,389		1,356		1,420		2,646		2,761
Asset Management Group		279		270			269		262		254		549		509
Residential Mortgage Banking (d)		227		206			327		254		228		433		519
Non-Strategic Assets Portfolio		147		148			167		181		175		295		394
Other, including BlackRock (b) (e)		295		361			421		304		433		656		799
Total revenue	$	3,810	$	3,777		$	4,073	$	3,920	$	4,064	$	7,587	$	8,019

(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 second quarter 2014 Form 10-Q will include additional information regarding BlackRock.

(c)	Includes gains on sales of portions of Visa Class B common shares in the first and second quarters of 2014 and the second and third quarters of 2013. For more information, refer to Selected Noninterest Income Information on page 3.

(d)	Includes benefit/provision for residential mortgage repurchase obligations. For more information, refer to Selected Noninterest Income Information on page 3.

(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 17

Retail Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
INCOME STATEMENT
Net interest income	$	973		$	980		$	1,012		$	1,006		$	1,012		$	1,953		$	2,061
Noninterest income
Service charges on deposits		148			140			151			149			141			288			270
Brokerage		61			55			57			57			58			116			110
Consumer services		248			218			256			234			229			466			445
Other		84			101			24			117			114			185			151
Total noninterest income		541			514			488			557			542			1,055			976
Total revenue		1,514			1,494			1,500			1,563			1,554			3,008			3,037
Provision for credit losses		4			145			195			152			148			149			310
Noninterest expense		1,155			1,100			1,138			1,151			1,156			2,255			2,287
Pretax earnings		355			249			167			260			250			604			440
Income taxes		130			91			60			95			92			221			162
Earnings	$	225		$	158		$	107		$	165		$	158		$	383		$	278
AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	28,959		$	29,317		$	29,588		$	29,477		$	29,212		$	29,137		$	29,063
Indirect auto		9,092			8,994			8,671			7,971			7,314			9,043			7,161
Indirect other		726			777			822			877			939			751			969
Education		7,298			7,547			7,680			7,818			7,982			7,422			8,101
Credit cards		4,307			4,271			4,250			4,148			4,061			4,289			4,085
Other		2,189			2,137			2,157			2,152			2,141			2,164			2,141
Total consumer		52,571			53,043			53,168			52,443			51,649			52,806			51,520
Commercial and commercial real estate		10,922			11,051			11,131			11,299			11,345			10,986			11,318
Floor plan		2,291			2,373			2,226			1,931			2,048			2,332			2,031
Residential mortgage		623			647			676			715			767			635			788
Total loans		66,407			67,114			67,201			66,388			65,809			66,759			65,657
Goodwill and other intangible assets		6,043			6,062			6,083			6,105			6,127			6,052			6,138
Other assets		2,753			2,744			2,730			2,722			2,580			2,748			2,522
Total assets	$	75,203		$	75,920		$	76,014		$	75,215		$	74,516		$	75,559		$	74,317
Deposits
Noninterest-bearing demand	$	21,907		$	21,359		$	21,699		$	21,349		$	21,187		$	21,634		$	20,967
Interest-bearing demand		34,272			33,490			32,298			31,748			32,004			33,883			31,595
Money market		50,142			49,484			49,250			48,939			48,645			49,815			48,469
Total transaction deposits		106,321			104,333			103,247			102,036			101,836			105,332			101,031
Savings		11,845			11,288			10,901			10,900			10,997			11,568			10,768
Certificates of deposit		19,354			19,882			20,425			21,050			21,823			19,617			22,251
Total deposits		137,520			135,503			134,573			133,986			134,656			136,517			134,050
Other liabilities		411			398			369			364			343			405			308
Total liabilities	$	137,931		$	135,901		$	134,942		$	134,350		$	134,999		$	136,922		$	134,358
PERFORMANCE RATIOS
Return on average assets		1.20	%		.84	%		.56	%		.87	%		.85	%		1.02	%		.75	%
Noninterest income to total revenue		36			34			33			36			35			35			32
Efficiency		76			74			76			74			74			75			75

(a)	See note (a) on page 16.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Retail Banking (Unaudited) (Continued)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
OTHER INFORMATION (a)								.
Credit-related statistics:
Commercial nonperforming assets	$	158		$	172		$	208		$	212		$	222
Consumer nonperforming assets		1,037			1,059			1,077			1,074			1,068
Total nonperforming assets	$	1,195		$	1,231		$	1,285		$	1,286		$	1,290
Purchased impaired loans (b)	$	631		$	663		$	692		$	718		$	750
Commercial lending net charge-offs	$	11		$	20		$	13		$	17		$	22		$	31		$	59
Credit card lending net charge-offs		37			37			37			35			39			74			84
Consumer lending (excluding credit card) net charge-offs		68			88			118			91			91			156			259
Total net charge-offs	$	116		$	145		$	168		$	143		$	152		$	261		$	402
Commercial lending annualized net charge-off ratio		.33	%		.60	%		.39	%		.51	%		.66	%		.47	%		.89	%
Credit card lending annualized net charge-off ratio		3.45	%		3.51	%		3.45	%		3.35	%		3.85	%		3.48	%		4.15	%
Consumer lending (excluding credit card) annualized net charge-off ratio		.56	%		.72	%		.94	%		.74	%		.75	%		.64	%		1.08	%
Total annualized net charge-off ratio		.70	%		.88	%		.99	%		.85	%		.93	%		.79	%		1.23	%
Home equity portfolio credit statistics: (c)
% of first lien positions at origination (d)		53	%		53	%		52	%		52	%		50	%
Weighted-average loan-to-value ratios (LTVs) (d) (e)		79	%		79	%		81	%		83	%		85	%
Weighted-average updated FICO scores (f)		748			745			745			745			745
Annualized net charge-off ratio (c)		.54	%		.75	%		1.06	%		.75	%		.82	%		.65	%		1.39	%
Delinquency data - % of total loans: (g)
Loans 30 - 59 days past due		.19	%		.21	%		.20	%		.22	%		.20	%
Loans 60 - 89 days past due		.07	%		.08	%		.09	%		.09	%		.08	%
Accruing loans past due		.26	%		.29	%		.29	%		.32	%		.28	%
Nonperforming loans		3.08	%		3.12	%		3.15	%		3.13	%		3.12	%
Other statistics:
ATMs		7,977			8,001			7,445			7,441			7,335
Branches (h)		2,695			2,703			2,714			2,724			2,780
Brokerage account assets (billions)	$	43		$	41		$	41		$	40		$	39
Customer-related statistics: (in thousands)
Non-teller deposit transactions (i)		33	%		31	%		30	%		27	%		23	%
Digital consumer customers (j)		45	%		43	%		40	%		38	%		37	%

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

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

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

(d)	Lien positions and LTV calculations reflect the use of revised assumptions where data is missing.

(e)	LTV statistics are based upon current information.

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

(g)	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.

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

(i)	Percentage of total deposit transactions processed at an ATM or through our mobile banking application.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19

Corporate & Institutional Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
INCOME STATEMENT
Net interest income	$	921		$	934		$	960		$	945		$	943		$	1,855		$	1,899
Noninterest income
Corporate service fees		312			268			277			277			297			580			543
Other		115			96			152			134			180			211			319
Noninterest income		427			364			429			411			477			791			862
Total revenue		1,348			1,298			1,389			1,356			1,420			2,646			2,761
Provision for credit losses (benefit)		103			(13	)		(29	)		30			(40	)		90			(26	)
Noninterest expense		504			488			525			495			499			992			979
Pretax earnings		741			823			893			831			961			1,564			1,808
Income taxes		271			300			324			289			349			571			655
Earnings	$	470		$	523		$	569		$	542		$	612		$	993		$	1,153
AVERAGE BALANCE SHEET
Loans
Commercial	$	78,022		$	75,506		$	74,199		$	72,753		$	72,202		$	76,771		$	71,016
Commercial real estate		21,234			20,039			18,938			17,830			17,002			20,640			16,939
Equipment lease financing		6,878			6,789			6,749			6,610			6,655			6,834			6,604
Total commercial lending		106,134			102,334			99,886			97,193			95,859			104,245			94,559
Consumer		1,016			1,125			1,032			801			876			1,070			979
Total loans		107,150			103,459			100,918			97,994			96,735			105,315			95,538
Goodwill and other intangible assets		3,804			3,826			3,841			3,848			3,775			3,815			3,763
Loans held for sale		932			894			893			975			968			913			1,101
Other assets		10,139			9,758			9,746			9,750			10,729			9,949			11,539
Total assets	$	122,025		$	117,937		$	115,398		$	112,567		$	112,207		$	119,992		$	111,941
Deposits
Noninterest-bearing demand	$	42,521		$	42,772		$	43,482		$	42,053		$	39,910		$	42,646		$	40,239
Money market		20,277			20,678			20,579			18,099			16,932			20,476			16,977
Other		7,565			7,531			7,609			6,992			6,914			7,548			6,947
Total deposits		70,363			70,981			71,670			67,144			63,756			70,670			64,163
Other liabilities		7,476			7,476			8,207			13,932			17,059			7,477			17,914
Total liabilities	$	77,839		$	78,457		$	79,877		$	81,076		$	80,815		$	78,147		$	82,077
PERFORMANCE RATIOS
Return on average assets		1.54	%		1.80	%		1.96	%		1.91	%		2.19	%		1.67	%		2.08	%
Noninterest income to total revenue		32			28			31			30			34			30			31
Efficiency		37			38			38			37			35			37			35

(a)	See note (a) on page 16.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 20

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


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
COMMERCIAL MORTGAGE SERVICING PORTFOLIO - SERVICED FOR THIRD PARTIES (in billions)
Beginning of period	$	313		$	308		$	298		$	294		$	290		$	308		$	282
Acquisitions/additions		18			23			26			18			18			41			39
Repayments/transfers		(15	)		(18	)		(16	)		(14	)		(14	)		(33	)		(27	)
End of period	$	316		$	313		$	308		$	298		$	294		$	316		$	294
OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management (c)	$	313		$	311		$	309		$	309		$	313		$	624		$	642
Capital Markets (d)	$	178		$	157		$	220		$	175		$	196		$	335		$	327
Commercial mortgage loans held for sale (e)	$	33		$	19		$	37		$	27		$	31		$	52		$	69
Commercial mortgage loan servicing income (f)		53			55			60			60			53			108			106
Commercial mortgage servicing rights valuation, net of economic hedge (g)		14			11			(5	)		18			44			25			55
Total commercial mortgage banking activities	$	100		$	85		$	92		$	105		$	128		$	185		$	230
Average Loans (by C&IB business)
Corporate Banking	$	53,633		$	52,253		$	51,689		$	50,844		$	50,678		$	52,947		$	49,964
Real Estate		27,642			26,003			24,333			22,622			21,361			26,827			21,077
Business Credit		13,198			12,534			12,182			11,726			11,611			12,868			11,397
Equipment Finance		10,290			10,210			10,095			10,035			10,034			10,250			9,923
Other		2,387			2,459			2,619			2,767			3,051			2,423			3,177
Total average loans		107,150			103,459			100,918			97,994			96,735			105,315			95,538
Total loans (h)	$	108,990		$	105,398		$	101,773		$	99,337		$	97,708
Net carrying amount of commercial mortgage servicing rights (h)	$	515		$	529		$	549		$	541		$	525
Credit-related statistics:
Nonperforming assets (h)	$	715		$	786		$	804		$	949		$	999
Purchased impaired loans (h) (i)	$	370		$	428		$	515		$	600		$	708
Net charge-offs (recoveries)	$	15		$	2		$	10		$	56		$	(19	)	$	17		$	39

(a)	See note (a) on page 16.

(b)	Represents consolidated PNC amounts. Our second quarter 2014 Form 10-Q 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 changes in fair value on commercial mortgage servicing rights due to time and payoffs for the first and second quarters of 2014 and net of commercial mortgage servicing rights amortization for 2013 periods. Commercial mortgage servicing rights valuation, 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 21

Asset Management Group (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
INCOME STATEMENT
Net interest income	$	72		$	71		$	71		$	74		$	70		$	143		$	143
Noninterest income		207			199			198			188			184			406			366
Total revenue		279			270			269			262			254			549			509
Provision for credit losses (benefit)		(6	)		12			8			(4	)		1			6			6
Noninterest expense		202			199			204			192			195			401			378
Pretax earnings		83			59			57			74			58			142			125
Income taxes		30			22			21			27			22			52			46
Earnings	$	53		$	37		$	36		$	47		$	36		$	90		$	79
AVERAGE BALANCE SHEET
Loans
Consumer	$	5,411		$	5,311		$	5,248		$	5,107		$	4,947		$	5,361		$	4,870
Commercial and commercial real estate		998			1,023			1,057			1,049			1,042			1,011			1,040
Residential mortgage		789			771			778			784			772			780			772
Total loans		7,198			7,105			7,083			6,940			6,761			7,152			6,682
Goodwill and other intangible assets		264			272			281			289			298			268			302
Other assets		223			222			230			216			230			222			226
Total assets	$	7,685		$	7,599		$	7,594		$	7,445		$	7,289		$	7,642		$	7,210
Deposits
Noninterest-bearing demand	$	1,327		$	1,338		$	1,442		$	1,220		$	1,249		$	1,333		$	1,290
Interest-bearing demand		3,912			3,893			3,547			3,329			3,475			3,902			3,545
Money market		3,857			3,889			3,760			3,693			3,722			3,873			3,781
Total transaction deposits		9,096			9,120			8,749			8,242			8,446			9,108			8,616
CDs/IRAs/savings deposits		446			436			427			431			441			441			448
Total deposits		9,542			9,556			9,176			8,673			8,887			9,549			9,064
Other liabilities		48			53			61			62			58			50			59
Total liabilities	$	9,590		$	9,609		$	9,237		$	8,735		$	8,945		$	9,599		$	9,123
PERFORMANCE RATIOS
Return on average assets		2.77	%		1.97	%		1.88	%		2.50	%		1.98	%		2.37	%		2.21	%
Noninterest income to total revenue		74			74			74			72			72			74			72
Efficiency		72			74			76			73			77			73			74
OTHER INFORMATION
Total nonperforming assets (b)	$	76		$	80		$	75		$	68		$	69
Purchased impaired loans (b) (c)	$	94		$	96		$	99		$	100		$	102
Total net charge-offs (recoveries)	$	2		$	1		$	3		$	(7	)	$	2		$	3		$	5
ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	113		$	112		$	111		$	106		$	112
Institutional		144			143			136			131			121
Total	$	257		$	255		$	247		$	237		$	233
Asset Type
Equity	$	149		$	145		$	142		$	132		$	130
Fixed income		71			66			70			70			70
Liquidity/Other		37			44			35			35			33
Total	$	257		$	255		$	247		$	237		$	233
Discretionary assets under management
Personal	$	85		$	84		$	83		$	80		$	78
Institutional		46			46			44			42			39
Total	$	131		$	130		$	127		$	122		$	117
Asset Type
Equity	$	73		$	71		$	70		$	65		$	62
Fixed income		40			34			39			40			39
Liquidity/Other		18			25			18			17			16
Total	$	131		$	130		$	127		$	122		$	117
Nondiscretionary assets under administration
Personal	$	28		$	28		$	28		$	26		$	34
Institutional		98			97			92			89			82
Total	$	126		$	125		$	120		$	115		$	116
Asset Type
Equity	$	76		$	74		$	72		$	67		$	68
Fixed income		31			32			31			30			31
Liquidity/Other		19			19			17			18			17
Total	$	126		$	125		$	120		$	115		$	116

(a)	See note (a) on page 16.

(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 22

Residential Mortgage Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
INCOME STATEMENT
Net interest income	$	37		$	40		$	49		$	46		$	51		$	77		$	99
Noninterest income
Loan servicing revenue
Servicing fees		56			61			56			40			37			117			78
Mortgage servicing rights valuation, net of economic hedge		1			(1	)		1			57			26						63
Loan sales revenue
Benefit / (provision) for residential mortgage repurchase obligations		(2	)		19			124			6			(73	)		17			(77	)
Loan sales revenue		137			88			98			108			190			225			362
Other		(2	)		(1	)		(1	)		(3	)		(3	)		(3	)		(6	)
Total noninterest income		190			166			278			208			177			356			420
Total revenue		227			206			327			254			228			433			519
Provision for credit losses (benefit)		1			(1	)		(3	)					4						24
Noninterest expense		169			213			243			210			192			382			392
Pretax earnings (loss)		57			(6	)		87			44			32			51			103
Income taxes (benefit)		21			(2	)		32			16			12			19			38
Earnings (loss)	$	36		$	(4	)	$	55		$	28		$	20		$	32		$	65
AVERAGE BALANCE SHEET
Portfolio loans	$	1,742		$	2,036		$	2,219		$	2,334		$	2,403		$	1,888		$	2,478
Loans held for sale		1,135			1,068			1,340			2,104			2,106			1,102			2,072
Mortgage servicing rights (MSR)		1,035			1,073			1,066			1,068			849			1,054			807
Other assets		3,574			4,600			4,458			3,811			5,049			4,084			5,247
Total assets	$	7,486		$	8,777		$	9,083		$	9,317		$	10,407		$	8,128		$	10,604
Deposits	$	2,318		$	2,100		$	2,388		$	2,936		$	3,260		$	2,210		$	3,183
Borrowings and other liabilities		2,403			3,464			3,553			2,316			3,216			2,930			3,351
Total liabilities	$	4,721		$	5,564		$	5,941		$	5,252		$	6,476		$	5,140		$	6,534
PERFORMANCE RATIOS
Return on average assets		1.93	%		(.18	)%		2.40	%		1.19	%		.77	%		.79	%		1.24	%
Noninterest income to total revenue		84			81			85			82			78			82			81
Efficiency		74			103			74			83			84			88			76
RESIDENTIAL MORTGAGE SERVICING PORTFOLIO SERVICED FOR THIRD PARTIES (in billions)
Beginning of period	$	114		$	114		$	115		$	116		$	120		$	114		$	119
Acquisitions					2			2			2						2			6
Additions		2			2			3			4			4			4			8
Repayments/transfers		(5	)		(4	)		(6	)		(7	)		(8	)		(9	)		(17	)
End of period	$	111		$	114		$	114		$	115		$	116		$	111		$	116
Servicing portfolio - third-party statistics: (b)
Fixed rate		94	%		94	%		93	%		92	%		92	%
Adjustable rate/balloon		6	%		6	%		7	%		8	%		8	%
Weighted-average interest rate		4.54	%		4.56	%		4.59	%		4.63	%		4.72	%
MSR capitalized value (in billions)	$	1.0		$	1.1		$	1.1		$	1.1		$	1.0
MSR capitalization value (in basis points)		87			92			95			90			84
Weighted-average servicing fee (in basis points)		27			28			28			28			28
RESIDENTIAL MORTGAGE REPURCHASE RESERVE
Beginning of period	$	103		$	131		$	471		$	523		$	522		$	131		$	614
(Benefit) / Provision		2			(19	)		(124	)		(6	)		73			(17	)		77
Agency settlements								(191	)
Losses - loan repurchases		(4	)		(9	)		(25	)		(46	)		(72	)		(13	)		(168	)
End of period	$	101		$	103		$	131		$	471		$	523		$	101		$	523
OTHER INFORMATION
Loan origination volume (in billions)	$	2.6		$	1.9		$	2.5		$	3.7		$	4.7		$	4.5		$	8.9
Loan sale margin percentage		5.38	%		4.53	%		3.96	%		2.92	%		4.04	%		5.01	%		4.05	%
Percentage of originations represented by:
Purchase volume (c)		50	%		37	%		41	%		38	%		28	%		45	%		24	%
Refinance volume		50	%		63	%		59	%		62	%		72	%		55	%		76	%
Total nonperforming assets (b)	$	160		$	173		$	189		$	205		$	220

(a)	See note (a) on page 16.

(b)	As of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 23

Non-Strategic Assets Portfolio (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions	June 30 2014			March 31 2014			December 31 2013			September 30 2013			June 30 2013			June 30 2014			June 30 2013
INCOME STATEMENT
Net interest income	$	137		$	142		$	161		$	161		$	164		$	279		$	367
Noninterest income		10			6			6			20			11			16			27
Total revenue		147			148			167			181			175			295			394
Provision for credit losses (benefit)		(39	)		(52	)		(59	)		(43	)		39			(91	)		81
Noninterest expense		30			26			39			33			41			56			93
Pretax earnings		156			174			187			191			95			330			220
Income taxes		57			64			69			70			35			121			81
Earnings	$	99		$	110		$	118		$	121		$	60		$	209		$	139
AVERAGE BALANCE SHEET
Commercial Lending:
Commercial/Commercial real estate	$	187		$	220		$	246		$	319		$	437		$	203		$	487
Lease financing		686			681			678			686			694			684			691
Total commercial lending		873			901			924			1,005			1,131			887			1,178
Consumer Lending:
Home equity		3,483			3,625			3,764			3,935			4,122			3,553			4,139
Residential real estate		4,961			5,104			5,312			5,496			5,709			5,032			5,823
Total consumer lending		8,444			8,729			9,076			9,431			9,831			8,585			9,962
Total portfolio loans		9,317			9,630			10,000			10,436			10,962			9,472			11,140
Other assets (b)		(740	)		(741	)		(757	)		(735	)		(672	)		(740	)		(629	)
Total assets	$	8,577		$	8,889		$	9,243		$	9,701		$	10,290		$	8,732		$	10,511
Deposits and other liabilities	$	227		$	231		$	236		$	261		$	275		$	229		$	222
Total liabilities	$	227		$	231		$	236		$	261		$	275		$	229		$	222
PERFORMANCE RATIOS
Return on average assets		4.63	%		5.02	%		5.06	%		4.95	%		2.34	%		4.83	%		2.67	%
Noninterest income to total revenue		7			4			4			11			6			5			7
Efficiency		20			18			23			18			23			19			24
OTHER INFORMATION
Nonperforming assets (c)	$	798		$	798		$	834		$	863		$	935
Purchased impaired loans (c) (d)	$	4,497		$	4,654		$	4,797		$	4,966		$	5,193
Net charge-offs	$	10		$	31		$	9		$	23		$	53		$	41		$	140
Annualized net charge-off ratio		.43	%		1.31	%		.36	%		.87	%		1.94	%		.87	%		2.53	%
LOANS (c)
Commercial Lending:
Commercial/Commercial real estate	$	176		$	201		$	236		$	270		$	388
Lease financing		688			683			680			675			696
Total commercial lending		864			884			916			945			1,084
Consumer Lending:
Home equity		3,410			3,554			3,692			3,844			4,029
Residential real estate		4,928			5,092			5,267			5,434			5,659
Total consumer lending		8,338			8,646			8,959			9,278			9,688
Total loans	$	9,202		$	9,530		$	9,875		$	10,223		$	10,772

(a)	See note (a) on page 16.

(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 24

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

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

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

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

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

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

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.

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

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

Core net interest income - 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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 25

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.

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

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

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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 26

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 27

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 valuation, net of economic hedge - 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 28

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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