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

Attached files

file	filename
EX-99.2 - EX-99.2 - PNC FINANCIAL SERVICES GROUP, INC.	d562498dex992.htm
8-K - FORM 8-K - PNC FINANCIAL SERVICES GROUP, INC.	d562498d8k.htm

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2013

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2013

(UNAUDITED)


		Page
Consolidated Results:

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

Business Segment Results:
Descriptions		14
Period End Employees		14
Income and Revenue		15
Retail Banking		16-17
Corporate & Institutional Banking		18-19
Asset Management Group		20
Residential Mortgage Banking		21
Non-Strategic Assets Portfolio		22
Glossary of Terms		23-27

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

BUSINESS

PNC is one of the largest diversified financial services companies in the United States and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, corporate and institutional banking, asset management and residential mortgage banking, providing many of its products and services nationally, 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, Georgia, Missouri, 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 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012			June 30 2013			June 30 2012
Interest Income
Loans	$	1,955		$	2,029		$	2,094		$	2,076		$	2,163		$	3,984		$	4,114
Investment securities		422			470			478			504			527			892			1,053
Other		92			112			99			90			106			204			226
Total interest income		2,469			2,611			2,671			2,670			2,796			5,080			5,393
Interest Expense
Deposits		86			93			97			103			83			179			186
Borrowed funds		125			129			150			168			187			254			390
Total interest expense		211			222			247			271			270			433			576
Net interest income		2,258			2,389			2,424			2,399			2,526			4,647			4,817
Noninterest Income
Asset management		340			308			302			305			278			648			562
Consumer services		314			296			294			288			290			610			554
Corporate services (a)		326			277			349			295			290			603			522
Residential mortgage (b) (c)		167			234			-			227			(173)			401			57
Service charges on deposits		147			136			150			152			144			283			271
Net gains on sales of securities		61			14			45			40			62			75			119
Net other-than-temporary impairments		(4)			(10)			(15)			(24)			(34)			(14)			(72)
Other (d)		455			311			520			406			240			766			525
Total noninterest income		1,806			1,566			1,645			1,689			1,097			3,372			2,538
Total revenue		4,064			3,955			4,069			4,088			3,623			8,019			7,355
Provision For Credit Losses		157			236			318			228			256			393			441
Noninterest Expense
Personnel		1,186			1,169			1,216			1,171			1,119			2,355			2,230
Occupancy		206			211			226			212			199			417			389
Equipment		189			183			194			185			181			372			356
Marketing		67			45			70			74			67			112			135
Other (d)		787			787			1,123			1,008			1,082			1,574			1,993
Total noninterest expense		2,435			2,395			2,829			2,650			2,648			4,830			5,103
Income before income taxes and noncontrolling interests		1,472			1,324			922			1,210			719			2,796			1,811
Income taxes		349			320			203			285			173			669			454
Net income		1,123			1,004			719			925			546			2,127			1,357
Less: Net income (loss) attributable to noncontrolling interests		1			(9)			1			(14)			(5)			(8)			1
Preferred stock dividends and discount accretion		53			75			54			63			25			128			64
Net income attributable to common shareholders	$	1,069		$	938		$	664		$	876		$	526		$	2,007		$	1,292
Earnings Per Common Share
Basic	$	2.02		$	1.78		$	1.26		$	1.66		$	1.00		$	3.79		$	2.44
Diluted	$	1.99		$	1.76		$	1.24		$	1.64		$	.98		$	3.76		$	2.42
Average Common Shares Outstanding
Basic		528			526			526			526			527			527			526
Diluted		531			528			528			529			530			530			529
Efficiency		60	%		61	%		70	%		65	%		73	%		60	%		69	%
Noninterest income to total revenue		44	%		40	%		40	%		41	%		30	%		42	%		35	%
Effective tax rate (e)		23.7	%		24.2	%		22.0	%		23.6	%		24.1	%		23.9	%		25.1	%

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

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

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

(c)	Includes provision for residential mortgage repurchase obligations.

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

(e)	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 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012
Assets
Cash and due from banks (a)	$	4,051		$	3,948		$	5,220		$	4,284		$	4,136
Federal funds sold and resale agreements (b)		1,613			1,274			1,463			1,724			1,646
Trading securities		2,109			2,243			2,096			2,664			2,121
Interest-earning deposits with banks (a)		3,797			1,541			3,984			2,321			3,995
Loans held for sale (b)		3,814			3,295			3,693			2,737			3,333
Investment securities (a)		57,449			59,361			61,406			62,814			61,937
Loans (a) (b)		189,775			186,504			185,856			181,864			180,425
Allowance for loan and lease losses (a)		(3,772)			(3,828)			(4,036)			(4,039)			(4,156)
Net loans		186,003			182,676			181,820			177,825			176,269
Goodwill		9,075			9,075			9,072			9,163			9,158
Other intangible assets		2,153			1,921			1,797			1,778			1,804
Equity investments (a) (c)		10,054			11,008			10,877			10,846			10,617
Other (a) (b)		24,297			24,470			23,679			24,647			24,559
Total assets	$	304,415		$	300,812		$	305,107		$	300,803		$	299,575

Liabilities
Deposits
Noninterest-bearing	$	66,708		$	64,652		$	69,980		$	64,484		$	64,476
Interest-bearing		145,571			146,968			143,162			141,779			142,447
Total deposits		212,279			211,620			213,142			206,263			206,923
Borrowed funds
Federal funds purchased and repurchase agreements		4,303			4,000			3,327			3,877			4,166
Federal Home Loan Bank borrowings		8,481			5,483			9,437			9,942			10,440
Bank notes and senior debt		11,177			10,918			10,429			9,960			10,185
Subordinated debt		7,113			7,996			7,299			6,754			7,593
Commercial paper (a)		6,400			6,953			8,453			10,731			9,469
Other (a) (b)		2,390			2,297			1,962			1,840			1,836
Total borrowed funds		39,864			37,647			40,907			43,104			43,689
Allowance for unfunded loan commitments and letters of credit		242			238			250			239			224
Accrued expenses (a)		4,057			4,181			4,449			4,015			3,428
Other (a)		6,032			5,048			4,594			5,380			5,097
Total liabilities		262,474			258,734			263,342			259,001			259,361

Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 539, 538, 538, 538 and 537 shares		2,693			2,690			2,690			2,689			2,687
Capital surplus - preferred stock		3,939			3,591			3,590			3,559			3,120
Capital surplus - common stock and other		12,234			12,174			12,193			12,149			12,098
Retained earnings		21,828			20,993			20,265			19,813			19,149
Accumulated other comprehensive income (loss)		45			767			834			991			402
Common stock held in treasury at cost: 8, 9, 10, 9 and 8 shares		(453)			(552)			(569)			(518)			(451)
Total shareholders’ equity		40,286			39,663			39,003			38,683			37,005
Noncontrolling interests		1,655			2,415			2,762			3,119			3,209
Total equity		41,941			42,078			41,765			41,802			40,214
Total liabilities and equity	$	304,415		$	300,812		$	305,107		$	300,803		$	299,575
Capital Ratios
Basel 1 Ratios
Tier 1 common (e)		10.1	%		9.8	%		9.6	%		9.5	%		9.3	%
Tier 1 risk-based (e)		12.0			11.6			11.6			11.7			11.4
Total risk-based (e)		15.2			14.9			14.7			14.5			14.2
Leverage (e)		10.9			10.4			10.4			10.4			10.1
Common shareholders’ equity to assets		11.9			12.0			11.6			11.7			11.3

(a)	Amounts include consolidated variable interest entities. Our first quarter 2013 Form 10-Q included, and second quarter 2013 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 2013 Form 10-Q included, and second quarter 2013 Form 10-Q will include, additional information regarding these items.

(c)	Amounts include our equity interest in BlackRock.

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

(e)	The ratio as of June 30, 2013 is estimated.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Average Consolidated Balance Sheet (Unaudited) (a)


	Three months ended										Six months ended
In millions	June 30 2013		March 31 2013		December 31 2012		September 30 2012		June 30 2012		June 30 2013		June 30 2012
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	24,339	$	25,168	$	25,552	$	26,546	$	26,968	$	24,751	$	27,000
Non-agency		5,889		6,025		6,245		6,490		6,716		5,957		6,646
Commercial mortgage-backed		3,855		3,745		3,674		3,720		3,561		3,800		3,667
Asset-backed		5,919		5,731		5,643		5,525		5,401		5,826		4,865
U.S. Treasury and government agencies		2,074		2,715		2,746		2,516		2,549		2,393		2,836
State and municipal		2,182		2,189		2,034		1,972		1,902		2,186		1,836
Other debt		2,728		2,649		2,860		3,045		3,178		2,689		3,087
Corporate stocks and other		304		368		346		390		317		335		332
Total securities available for sale		47,290		48,590		49,100		50,204		50,592		47,937		50,269
Securities held to maturity
Residential mortgage-backed		3,833		4,146		4,377		4,480		4,259		3,988		4,418
Commercial mortgage-backed		3,521		3,747		3,967		4,180		4,376		3,634		4,506
Asset-backed		978		826		702		825		874		902		1,022
U.S. Treasury and government agencies		233		231		229		227		225		232		223
State and municipal		640		639		664		671		671		640		671
Other		349		352		355		357		359		350		360
Total securities held to maturity		9,554		9,941		10,294		10,740		10,764		9,746		11,200
Total investment securities		56,844		58,531		59,394		60,944		61,356		57,683		61,469
Loans
Commercial		86,015		83,476		80,876		79,250		77,131		84,752		73,208
Commercial real estate		18,860		18,850		18,678		18,514		18,440		18,855		17,630
Equipment lease financing		7,350		7,241		6,956		6,774		6,586		7,296		6,481
Consumer		61,587		61,411		61,430		60,570		59,832		61,499		58,490
Residential real estate		14,794		15,121		15,257		15,575		15,932		14,957		15,430
Total loans		188,606		186,099		183,197		180,683		177,921		187,359		171,239
Loans held for sale		3,072		3,279		3,025		2,956		3,016		3,175		2,963
Federal funds sold and resale agreements		1,141		1,176		1,290		1,601		1,666		1,159		1,744
Other		6,439		7,095		6,737		6,422		6,173		6,765		6,518
Total interest-earning assets		256,102		256,180		253,643		252,606		250,132		256,141		243,933
Noninterest-earning assets:
Allowance for loan and lease losses		(3,821)		(3,937)		(3,987)		(4,152)		(4,176)		(3,879)		(4,245)
Cash and due from banks		3,869		4,055		4,126		3,907		3,694		3,961		3,735
Other		45,877		47,147		48,349		47,781		46,501		46,509		45,424
Total assets	$	302,027	$	303,445	$	302,131	$	300,142	$	296,151	$	302,732	$	288,847

(a)	Calculated using average daily balances.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

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


	Three months ended										Six months ended
In millions	June 30 2013		March 31 2013		December 31 2012		September 30 2012		June 30 2012		June 30 2013		June 30 2012
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	69,123	$	69,003	$	67,997	$	67,628	$	66,902	$	69,063	$	64,032
Demand		40,172		39,372		36,619		34,733		34,388		39,774		32,993
Savings		11,124		10,671		10,190		10,066		10,008		10,899		9,596
Retail certificates of deposit		22,641		23,488		24,394		25,695		27,373		23,062		28,192
Time deposits in foreign offices and other time		2,164		2,267		2,740		3,230		3,577		2,216		3,407
Total interest-bearing deposits		145,224		144,801		141,940		141,352		142,248		145,014		138,220
Borrowed funds
Federal funds purchased and repurchase agreements		4,132		4,328		4,023		4,659		4,937		4,229		4,744
Federal Home Loan Bank borrowings		7,218		7,657		8,877		10,626		10,238		7,437		9,603
Bank notes and senior debt		10,886		10,469		9,702		9,657		10,618		10,679		10,878
Subordinated debt		7,003		7,249		6,668		6,408		7,293		7,125		7,506
Commercial paper		7,263		7,967		9,069		10,518		8,229		7,613		6,957
Other		2,099		2,057		1,961		1,868		1,809		2,078		1,980
Total borrowed funds		38,601		39,727		40,300		43,736		43,124		39,161		41,668
Total interest-bearing liabilities		183,825		184,528		182,240		185,088		185,372		184,175		179,888
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		64,749		64,850		65,527		62,483		60,478		64,800		59,189
Allowance for unfunded loan commitments and letters of credit		238		249		239		225		243		244		242
Accrued expenses and other liabilities		10,929		11,891		12,237		11,590		10,375		11,406		10,781
Equity		42,286		41,927		41,888		40,756		39,683		42,107		38,747
Total liabilities and equity	$	302,027	$	303,445	$	302,131	$	300,142	$	296,151	$	302,732	$	288,847

(a) Calculated using average daily balances.

Supplemental Average Balance Sheet Information (Unaudited)

Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	145,224	$	144,801	$	141,940	$	141,352	$	142,248	$	145,014	$	138,220
Noninterest-bearing deposits		64,749		64,850		65,527		62,483		60,478		64,800		59,189
Total deposits	$	209,973	$	209,651	$	207,467	$	203,835	$	202,726	$	209,814	$	197,409

Transaction deposits	$	174,044	$	173,225	$	170,143	$	164,844	$	161,768	$	173,637	$	156,214

Common shareholders’ equity	$	36,310	$	35,628	$	35,296	$	34,323	$	33,648	$	35,972	$	33,315


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Details of Net Interest Margin (Unaudited) (a)


	Three months ended																Six months ended
		June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012			June 30 2013			June 30 2012
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency			2.50	%		2.90	%		2.94	%		3.03	%		3.17	%		2.70	%		3.16	%
Non-agency			5.51			5.40			5.39			5.08			5.63			5.46			5.50
Commercial mortgage-backed			4.00			4.02			3.81			4.29			4.41			4.01			4.42
Asset-backed			1.80			1.92			1.93			2.09			1.91			1.86			2.06
U.S. Treasury and government agencies			1.37			1.65			1.76			2.08			2.33			1.53			2.04
State and municipal			4.48			4.93			4.66			4.62			4.63			4.71			4.87
Other debt			2.39			2.58			2.91			2.85			2.56			2.48			2.56
Corporate stocks and other			.14			.12			.24			.12			.11			.13			.07
Total securities available for sale			2.93			3.16			3.19			3.27			3.40			3.05			3.39
Securities held to maturity
Residential mortgage-backed			3.26			3.44			3.34			3.50			3.70			3.35			3.64
Commercial mortgage-backed			4.34			4.71			4.50			4.46			4.56			4.53			4.59
Asset-backed			1.74			1.80			1.76			2.61			1.83			1.76			1.75
U.S. Treasury and government agencies			3.80			3.77			3.82			3.81			3.79			3.78			3.79
State and municipal			4.27			4.23			4.23			4.18			4.20			4.25			4.19
Other			2.89			2.82			2.89			2.82			2.89			2.86			2.86
Total securities held to maturity			3.57			3.82			3.73			3.83			3.90			3.70			3.86
Total investment securities			3.04			3.27			3.28			3.37			3.49			3.16			3.48

Loans
Commercial			3.71			4.03			4.16			4.30			4.75			3.87			4.64
Commercial real estate			4.84			5.05			5.57			5.26			5.78			4.94			5.50
Equipment lease financing			4.41			4.05			4.26			4.45			4.96			4.23			4.85
Consumer			4.40			4.67			4.68			4.63			4.67			4.54			4.72
Residential real estate			5.13			5.29			5.36			5.18			5.44			5.21			5.51
Total loans			4.19			4.45			4.58			4.59			4.90			4.32			4.84

Loans held for sale			4.22			6.49			5.34			4.34			6.00			5.39			6.44
Federal funds sold and resale agreements			.61			.74			1.04			1.22			1.45			.68			1.52
Other			3.66			3.25			3.24			3.27			3.62			3.44			3.67
Total yield on interest-earning assets			3.91			4.15			4.24			4.24			4.51			4.03			4.46

Rate on interest-bearing liabilities
Interest-bearing deposits
Money market			.18			.19			.19			.21			.21			.19			.22
Demand			.05			.04			.04			.04			.04			.05			.04
Savings			.10			.10			.09			.09			.10			.10			.10
Retail certificates of deposit			.82			.85			.89			.90			.57			.84			.69
Time deposits in foreign offices and other time			.43			.61			.45			.38			.49			.52			.49
Total interest-bearing deposits			.24			.26			.27			.29			.24			.25			.27

Borrowed funds
Federal funds purchased and repurchase agreements			.14			.16			.20			.19			.21			.15			.22
Federal Home Loan Bank borrowings			.53			.61			.70			.69			.74			.57			.77
Bank notes and senior debt			1.71			1.83			2.07			2.16			2.30			1.77			2.39
Subordinated debt			2.78			2.83			3.57			4.71			4.77			2.81			4.94
Commercial paper			.22			.25			.28			.28			.26			.23			.26
Other			2.62			2.28			2.78			2.43			2.25			2.45			2.14
Total borrowed funds			1.28			1.30			1.46			1.53			1.72			1.29			1.86
Total rate on interest-bearing liabilities			.46			.48			.54			.58			.58			.47			.64
Interest rate spread			3.45			3.67			3.70			3.66			3.93			3.56			3.82
Impact of noninterest-bearing sources			.13			.14			.15			.16			.15			.13			.17

Net interest margin			3.58	%		3.81	%		3.85	%		3.82	%		4.08	%		3.69	%		3.99	%

(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, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, were $40 million, $40 million, $42 million, $36 million and $35 million, respectively. The taxable-equivalent adjustments to net interest income for the six months ended June 30, 2013 and June 30, 2012 were $80 million and $66 million, respectively.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

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


Total and Core Net Interest Income
	Three months ended																Six months ended
In millions	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012				June 30 2013			June 30 2012
Core net interest income (a)	$	2,054		$	2,140		$	2,151		$	2,154		$	2,183			$	4,194		$	4,211
Purchase accounting accretion (a)		204			249			273			245			343		453					606
Total net interest income	$	2,258		$	2,389		$	2,424		$	2,399		$	2,526			$	4,647		$	4,817
(a) We believe that core net interest income and purchase accounting accretion are useful in evaluating the components of net interest income.

Details of Net Interest Margin (b)

	Three months ended																Six months ended
In millions	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012				June 30 2013			June 30 2012
Average yields/rates
Yield on interest earning assets
Total investment securities		3.04	%		3.27	%		3.28	%		3.37	%		3.49	%			3.16	%		3.48	%
Total loans		4.19			4.45			4.58			4.59			4.90				4.32			4.84
Other		3.50			3.91			3.56			3.26			3.95				3.71			4.06
Total yield on interest earning assets		3.91			4.15			4.24			4.24			4.51				4.03			4.46

Rate on interest-bearing liabilities
Total interest-bearing deposits		.24			.26			.27			.29			.24				.25			.27
Total borrowed funds		1.28			1.30			1.46			1.53			1.72				1.29			1.86
Total rate on interest-bearing liabilities		.46			.48			.54			.58			.58				.47			.64

Interest rate spread		3.45			3.67			3.70			3.66			3.93				3.56			3.82
Impact of noninterest-bearing sources		.13			.14			.15			.16			.15				.13			.17
Net interest margin		3.58	%		3.81	%		3.85	%		3.82	%		4.08	%			3.69	%		3.99	%

(b) See note (a) on page 5.

Details of Core Net Interest Margin (c)

	Three months ended																Six months ended
In millions	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012				June 30 2013			June 30 2012
Average yields/rates
Yield on interest earning assets
Total investment securities		2.95	%		3.21	%		3.17	%		3.27	%		3.37	%			3.08	%		3.39	%
Total loans		3.77			3.96			4.02			4.09			4.25				3.86			4.28
Other		3.69			3.22			3.35			3.11			3.73				3.44			3.69
Total yield on interest earning assets		3.58			3.75			3.80			3.85			4.01				3.67			4.03

Rate on interest-bearing liabilities
Total interest-bearing deposits		.27			.29			.31			.34			.39				.28			.45
Total borrowed funds		1.12			1.09			1.23			1.31			1.50				1.10			1.63
Total rate on interest-bearing liabilities		.45			.46			.52			.57			.64				.45			.73

Interest rate spread		3.13			3.29			3.28			3.28			3.37				3.22			3.30
Impact of noninterest-bearing sources		.13			.14			.15			.16			.15				.13			.17
Core net interest margin		3.26			3.43			3.43			3.44			3.52				3.35			3.47
Purchase accounting accretion impact on net interest margin		.32			.38			.42			.38			.56				.34			.52
Net interest margin		3.58	%		3.81	%		3.85	%		3.82	%		4.08	%			3.69	%		3.99	%

(c)

We believe that core net interest margin, a non-GAAP measure, is useful as a tool to help evaluate the impact of purchase accounting accretion on net interest margin. To calculate core net interest margin, each calculated margin in the table has been adjusted by annualized purchase accounting accretion divided by average interest-earning assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Per Share Related Information (Unaudited)


		Three months ended															Six months ended
In millions, except per share data		June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012			June 30 2013			June 30 2012
Basic
Net income	$		1,123	$		1,004	$		719	$		925	$		546	$		2,127	$		1,357
Less:
Net income (loss) attributable to noncontrolling interests			1			(9)			1			(14)			(5)			(8)			1
Preferred stock dividends and discount accretion and redemptions			53			75			54			63			25			128			64
Dividends and undistributed earnings allocated to nonvested restricted shares			5			4			4			5			1			9			5

Net income attributable to basic common shares	$		1,064	$		934	$		660	$		871	$		525	$		1,998	$		1,287
Basic weighted-average common shares outstanding			528			526			526			526			527			527			526
Basic earnings per common share	$		2.02	$		1.78	$		1.26	$		1.66	$		1.00	$		3.79	$		2.44

Diluted
Net income attributable to basic common shares	$		1,064	$		934	$		660	$		871	$		525	$		1,998	$		1,287
Less: Impact of BlackRock earnings per share dilution			4			5			4			3			4			9			7

Net income attributable to diluted common shares	$		1,060	$		929	$		656	$		868	$		521	$		1,989	$		1,280
Basic weighted-average common shares outstanding			528			526			526			526			527			527			526
Dilutive potential common shares			3			2			2			3			3			3			3

Diluted weighted-average common shares outstanding			531			528			528			529			530			530			529
Diluted earnings per common share	$		1.99	$		1.76	$		1.24	$		1.64	$		.98	$		3.76	$		2.42

Selected Noninterest Income Information (Unaudited)

		Three months ended															Six months ended
In millions, except per share data		June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012			June 30 2013			June 30 2012
Increase (Decrease) to Noninterest Income and Impact on Diluted Earnings Per Share

Commercial mortgage servicing rights recovery / (impairment), net of economic hedge (Pre-tax)	$		44	$		11	$		16	$		16	$		(6)	$		55	$		(1)
Impact on diluted earnings per share (a)			.05			.01			.02			.02			(.01)			.07			(.00)

Provision for residential mortgage repurchase obligations (Pre-tax)	$		(73)	$		(4)	$		(254)	$		(37)	$		(438)	$		(77)	$		(470)
Impact on diluted earnings per share (a)			(.09)			(.00)			(.31)			(.05)			(.54)			(.09)			(.58)

Net gains on sales of securities (Pre-tax)	$		61	$		14	$		45	$		40	$		62	$		75	$		119
Impact on diluted earnings per share (a)			.08			.02			.06			.05			.08			.09			.15

Gains on sale of Visa Class B common shares (Pre-tax)	$		83				$		130	$		137				$		83
Impact on diluted earnings per share (a)			.10						.16			.17						.10

Credit valuations related to customer-initiated hedging activities (Pre-tax)	$		39	$		2	$		17	$		18	$		(35)	$		41	$		(28)
Impact on diluted earnings per share (a)			.05			.00			.02			.02			(.04)			.05			(.03)

(a)	In calculating impact on diluted earnings per share in the table above, after-tax amounts for the income statement items were calculated using a statutory federal income tax rate of 35%.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Loans (Unaudited)


In millions	June 30 2013		March 31 2013		December 31 2012		September 30 2012		June 30 2012
Commercial
Retail/wholesale trade	$	14,466	$	14,109	$	13,801	$	13,381	$	13,434
Manufacturing		14,270		14,139		13,856		13,498		13,442
Service providers		12,758		12,568		12,095		11,822		11,875
Real estate related (a)		10,248		10,274		10,616		10,208		10,051
Financial services (b)		10,834		9,679		9,026		9,136		9,397
Health care		7,618		7,392		7,267		6,652		6,240
Other industries		16,736		16,124		16,379		14,971		14,462
Total commercial		86,930		84,285		83,040		79,668		78,901
Commercial real estate
Real estate projects (c)		12,636		12,596		12,347		12,801		12,837
Commercial mortgage		6,355		6,183		6,308		5,808		5,643
Total commercial real estate		18,991		18,779		18,655		18,609		18,480
Equipment lease financing		7,349		7,240		7,247		6,923		6,764
Total commercial lending		113,270		110,304		108,942		105,200		104,145
Consumer
Home equity
Lines of credit		22,559		23,029		23,576		24,007		24,360
Installment		13,857		13,001		12,344		11,871		11,478
Credit card		4,135		4,081		4,303		4,135		4,123
Other consumer
Education		7,814		8,048		8,238		8,415		8,807
Automobile		9,066		8,716		8,708		8,328		7,166
Other		4,297		4,340		4,505		4,525		4,523
Total consumer		61,728		61,215		61,674		61,281		60,457
Residential real estate
Residential mortgage		14,051		14,217		14,430		14,505		14,927
Residential construction		726		768		810		878		896
Total residential real estate		14,777		14,985		15,240		15,383		15,823
Total consumer lending		76,505		76,200		76,914		76,664		76,280
Total loans (d)	$	189,775	$	186,504	$	185,856	$	181,864	$	180,425
(a) Includes loans to customers in the real estate and construction industries.
(b) Includes loans issued to a Financing Special Purpose Entity which holds receivables from other industries within Commercial Lending.
(c) Includes both construction loans and intermediate financing for projects.
(d) Includes purchased impaired loans:	$	6,778	$	7,073	$	7,406	$	7,749	$	8,083

Details of Loans Held for Sale (Unaudited)

In millions	June 30 2013		March 31 2013		December 31 2012		September 30 2012		June 30 2012
Commercial mortgage	$	1,072	$	895	$	1,392	$	1,183	$	1,021
Residential mortgage		2,353		2,331		2,220		1,477		1,939
Other		389		69		81		77		373
Total	$	3,814	$	3,295	$	3,693	$	2,737	$	3,333

Net Unfunded Commitments (Unaudited)
In millions	June 30 2013		March 31 2013		December 31 2012		September 30 2012		June 30 2012
Net unfunded commitments	$	124,142	$	121,812	$	120,592	$	118,285	$	113,636


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

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

Change in Allowance for Loan and Lease Losses


Three months ended - in millions	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012
Beginning balance	$	3,828		$	4,036		$	4,039		$	4,156		$	4,196
Charge-offs:
Commercial		(81)			(114)			(126)			(114)			(123)
Commercial real estate		(51)			(86)			(72)			(83)			(75)
Equipment lease financing		(1)			(3)			(4)			(2)			(5)
Home equity (a)		(92)			(194)			(141)			(167)			(121)
Residential real estate (a)		(43)			(79)			(18)			(25)			(37)
Credit card (a)		(45)			(50)			(43)			(47)			(55)
Other consumer (a)		(43)			(43)			(56)			(43)			(46)
Total charge-offs (b)		(356)			(569)			(460)			(481)			(462)
Recoveries:
Commercial		66			63			77			76			75
Commercial real estate		33			13			29			34			29
Equipment lease financing		4			6			8			7			6
Home equity		24			13			15			16			17
Residential real estate		1			(1)						(1)			1
Credit card		6			5			9			6			6
Other consumer		14			14			12			12			13
Total recoveries		148			113			150			150			147
Net (charge-offs) recoveries:
Commercial		(15)			(51)			(49)			(38)			(48)
Commercial real estate		(18)			(73)			(43)			(49)			(46)
Equipment lease financing		3			3			4			5			1
Home equity		(68)			(181)			(126)			(151)			(104)
Residential real estate		(42)			(80)			(18)			(26)			(36)
Credit card		(39)			(45)			(34)			(41)			(49)
Other consumer		(29)			(29)			(44)			(31)			(33)
Total net charge-offs		(208)			(456)			(310)			(331)			(315)
Provision for credit losses		157			236			318			228			256
Other		(1)									1
Net change in allowance for unfunded loan commitments and letters of credit		(4)			12			(11)			(15)			19
Ending balance	$	3,772		$	3,828		$	4,036		$	4,039		$	4,156
Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized) (b)		.44	%		.99	%		.67	%		.73	%		.71	%
Allowance for loan and lease losses to total loans		1.99			2.05			2.17			2.22			2.30
Commercial lending net charge-offs	$	(30)		$	(121)		$	(88)		$	(82)		$	(93)
Consumer lending net charge-offs		(178)			(335)			(222)			(249)			(222)
Total net charge-offs	$	(208)		$	(456)		$	(310)		$	(331)		$	(315)
Net charge-offs to average loans
Commercial lending		.11	%		.45	%		.33	%		.31	%		.37	%
Consumer lending		.93			1.78			1.15			1.30			1.18
(a) Pursuant to regulatory guidance issued in the third quarter of 2012, additional consumer charge-offs of $45.2 million and $82.9 million have been taken as of December 31, 2012 and September 30, 2012, respectively, related to changes in treatment of certain loans where borrowers have been discharged from personal liability under bankruptcy protection where no formal affirmation of the loan obligation was provided by the borrower. Such loans have been classified as troubled debt restructurings (TDRs) and have been reported based upon fair value of the collateral less costs to sell. (b) Pursuant to alignment with interagency guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, additional charge-offs of $134 million have been taken. Excluding the impact of these additional charge-offs, annualized net charge-offs to average loans for the first quarter 2013 was 0.70%.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit

Three months ended - in millions	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012
Beginning balance	$	238		$	250		$	239		$	224		$	243
Net change in allowance for unfunded loan commitments and letters of credit		4			(12)			11			15			(19)
Ending balance	$	242		$	238		$	250		$	239		$	224


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

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

Accretion - Purchased Impaired Loans


	Three months ended						Six months ended
In millions	June 30 2013		March 31 2013		June 30 2012		June 30 2013		June 30 2012

Impaired loans
Scheduled accretion	$	150	$	157	$	178		307		336
Reversal of contractual interest on impaired loans		(83)		(85)		(111)		(168)		(208)

Scheduled accretion net of contractual interest		67		72		67		139		128
Excess cash recoveries		11		50		51		61		91

Total impaired loans	$	78	$	122	$	118	$	200	$	219


Purchased Impaired Loans - Accretable Yield

In millions			In millions

April 1, 2013	$	2,172	January 1, 2013	$	2,166
Scheduled accretion		(150)	Scheduled accretion		(307)
Excess cash recoveries		(11)	Excess cash recoveries		(61)
Net reclassifications to accretable from non-accretable and other activity (a)		153	Net reclassifications to accretable from non-accretable and other activity (a)		366

June 30, 2013 (b)	$	2,164	June 30, 2013 (b)	$	2,164

(a) Approximately 66% and 58% of the net reclassifications for the second quarter and first six months of 2013, 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, 2013, we estimate that the reversal of contractual interest on purchased impaired loans will total approximately $1.2 billion in future periods. This will offset the total net accretable interest in future interest income of $2.2 billion on purchased impaired loans.

Valuation of Purchased Impaired Loans


	June 30, 2013				March 31, 2013				December 31, 2012
Dollars in millions	Balance		Net Investment		Balance		Net Investment		Balance		Net Investment

Commercial and commercial real estate loans:
Unpaid principal balance	$	1,299			$	1,465			$	1,680
Purchased impaired mark		(331)				(386)				(431)

Recorded investment		968				1,079				1,249
Allowance for loan losses		(183)				(198)				(239)

Net investment		785		60%		881		60%		1,010		60%

Consumer and residential mortgage loans:
Unpaid principal balance		6,095				6,359				6,639
Purchased impaired mark		(285)				(365)				(482)

Recorded investment		5,810				5,994				6,157
Allowance for loan losses		(934)				(911)				(858)

Net investment		4,876		80%		5,083		80%		5,299		80%

Total purchased impaired loans:
Unpaid principal balance		7,394				7,824				8,319
Purchased impaired mark		(616)				(751)				(913)

Recorded investment		6,778				7,073				7,406
Allowance for loan losses		(1,117)				(1,109)				(1,097)

Net investment	$	5,661		77%	$	5,964		76%	$	6,309		76%


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


In millions	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012
Nonperforming loans, including TDRs (a)
Commercial lending
Commercial
Retail/wholesale trade	$	63		$	62		$	61		$	88		$	110
Manufacturing		62			75			73			104			141
Service providers		110			112			124			144			145
Real estate related (b)		163			161			178			236			214
Financial services		14			13			9			13			15
Health care		24			21			25			26			22
Other industries		85			98			120			138			144
Total commercial		521			542			590			749			791
Commercial real estate
Real estate projects		516			606			654			802			924
Commercial mortgage		123			138			153			198			218
Total commercial real estate		639			744			807			1,000			1,142
Equipment lease financing		7			9			13			15			19
Total commercial lending		1,167			1,295			1,410			1,764			1,952
Consumer lending (c)
Home equity (d)		1,131			1,088			951			818			722
Residential real estate
Residential mortgage (d)		947			952			824			766			707
Residential construction		15			13			21			24			32
Credit card		4			6			5			5			6
Other consumer (d)		57			68			43			37			39
Total consumer lending (e)		2,154			2,127			1,844			1,650			1,506
Total nonperforming loans (f)		3,321			3,422			3,254			3,414			3,458
OREO and foreclosed assets
Other real estate owned (OREO) (g)		432			472			507			578			670
Foreclosed and other assets		25			33			33			29			48
Total OREO and foreclosed assets		457			505			540			607			718
Total nonperforming assets	$	3,778		$	3,927		$	3,794		$	4,021		$	4,176
Nonperforming loans to total loans		1.75	%		1.83	%		1.75	%		1.88	%		1.92	%
Nonperforming assets to total loans, OREO and foreclosed assets		1.99			2.10			2.04			2.20			2.31
Nonperforming assets to total assets		1.24			1.31			1.24			1.34			1.39
Allowance for loan and lease losses to nonperforming loans (h)		114			112			124			118			120

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

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

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

(d)

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

(e)

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

(f)	Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under the fair value option and purchased impaired loans.

(g)

OREO excludes $311 million, $383 million, $380 million, $363 million and $262 million at June 30, 2013, March 31, 2013, December 31, 2012, September 30, 2012 and June 30, 2012, respectively, related to residential real estate that was acquired by us upon foreclosure of serviced loans because they are insured by the Federal Housing Administration (FHA) or guaranteed by the Department of Veterans Affairs (VA).

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Details of Nonperforming Assets and Troubled Debt Restructurings (Unaudited)

Change in Nonperforming Assets


In millions	April 1, 2013 - June 30, 2013		January 1, 2013 - March 31, 2013		October 1, 2012 - December 31, 2012		July 1, 2012 - September 30, 2012		April 1, 2012 - June 30, 2012
Beginning balance	$	3,927	$	3,794	$	4,021	$	4,176	$	4,361
New nonperforming assets		773		1,032		804		861		797
Charge-offs and valuation adjustments		(216)		(343)		(297)		(392)		(293)
Principal activity, including paydowns and payoffs		(328)		(258)		(532)		(438)		(428)
Asset sales and transfers to loans held for sale		(146)		(114)		(134)		(162)		(168)
Returned to performing status		(232)		(184)		(68)		(24)		(93)
Ending balance	$	3,778	$	3,927	$	3,794	$	4,021	$	4,176

Largest Individual Nonperforming Assets at June 30, 2013 (a)


In millions
Ranking	Outstandings		Industry
1	$	37	Real Estate, Rental and Leasing
2		33	Real Estate, Rental and Leasing
3		17	Real Estate, Rental and Leasing
4		16	Construction
5		14	Real Estate, Rental and Leasing
6		12	Other Real Estate Owned
7		12	Retail/wholesale trade
8		11	Other Industries
9		10	Real Estate, Rental and Leasing
10		9	Construction

Total	$	171

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 2013		March 31 2013		December 31 2012		September 30 2012		June 30 2012
Total commercial lending	$	599	$	610	$	541	$	556	$	483
Total consumer lending (a)		2,243		2,231		2,318		2,019		1,836
Total TDRs	$	2,842	$	2,841	$	2,859	$	2,575	$	2,319
Nonperforming	$	1,531	$	1,517	$	1,589	$	1,383	$	1,189
Accruing (b)		1,103		1,103		1,037		950		878
Credit card (c)		208		221		233		242		252
Total TDRs	$	2,842	$	2,841	$	2,859	$	2,575	$	2,319

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

(a)

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

(b)

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

(c)

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Accruing Loans Past Due (Unaudited)

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


	Amount										Percent of Total Outstandings
Dollars in millions	Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Jun. 30 2012		Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012			Jun. 30 2012
Commercial	$	85	$	163	$	115	$	141	$	130		.10	%		.19	%		.14	%		.18	%		.16	%
Commercial real estate		66		111		100		91		123		.35			.59			.54			.49			.67
Equipment lease financing		2		34		17		8		5		.03			.47			.23			.12			.07
Home equity		76		86		117		130		124		.21			.24			.33			.36			.35
Residential real estate
Non government insured		120		145		151		147		148		.81			.97			.99			.96			.94
Government insured		110		114		127		127		123		.74			.76			.83			.80			.78
Credit card		27		30		34		31		33		.65			.74			.79			.75			.80
Other consumer
Non government insured		52		49		65		54		43		.25			.23			.30			.25			.21
Government insured		148		162		193		154		164		.70			.77			.90			.72			.80
Total	$	686	$	894	$	919	$	883	$	893		.36			.48			.49			.49			.49

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

	Amount										Percent of Total Outstandings
	Jun. 30		Mar. 31		Dec. 31		Sept. 30		Jun. 30		Jun. 30			Mar. 31			Dec. 31			Sept. 30			Jun. 30
Dollars in millions	2013		2013		2012		2012		2012		2013			2013			2012			2012			2012
Commercial	$	53	$	35	$	55	$	92	$	65		.06	%		.04	%		.07	%		.12	%		.08	%
Commercial real estate		22		36		57		66		105		.12			.19			.31			.35			.57
Equipment lease financing		4		1		1		5		2		.05			.01			.01			.07			.03
Home equity		29		33		58		69		68		.08			.09			.16			.19			.19
Residential real estate
Non government insured		29		41		49		52		52		.20			.27			.32			.34			.33
Government insured		79		86		97		94		91		.53			.57			.64			.59			.58
Credit card		19		20		23		20		22		.46			.49			.53			.48			.53
Other consumer
Non government insured		14		15		21		23		16		.07			.07			.10			.11			.08
Government insured		100		86		110		121		113		.47			.41			.51			.57			.55
Total	$	349	$	353	$	471	$	542	$	534		.18			.19			.25			.30			.30

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

	Amount										Percent of Total Outstandings
	Jun. 30		Mar. 31		Dec. 31		Sept. 30		Jun. 30		Jun. 30			Mar. 31			Dec. 31			Sept. 30			Jun. 30
Dollars in millions	2013		2013		2012		2012		2012		2013			2013			2012			2012			2012
Commercial	$	31	$	27	$	42	$	41	$	34		.04	%		.03	%		.05	%		.05	%		.04	%
Commercial real estate				3		15		36		16					.02			.08			.19			.09
Equipment lease financing						2		1		1								.03			.01			.01
Residential real estate
Non government insured		50		59		46		97		104		.34			.39			.30			.63			.66
Government insured		1,326		1,458		1,855		1,896		1,925		8.97			9.73			12.17			11.98			12.17
Credit card		33		35		36		32		38		.80			.86			.84			.77			.92
Other consumer
Non government insured		12		13		18		18		17		.06			.06			.08			.08			.08
Government insured		310		311		337		335		348		1.46			1.47			1.57			1.58			1.70
Total	$	1,762	$	1,906	$	2,351	$	2,456	$	2,483		.93			1.02			1.26			1.35			1.38

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

(b)

Pursuant to alignment with interagency guidance on practices for loans and lines of credit related to consumer lending in the first quarter of 2013, accruing consumer loans past due 30 - 59 days decreased $44 million, accruing consumer loans past due 60 - 89 days decreased $36 million and accruing consumer loans past due 90 days or more decreased $315 million, of which $295 million related to residential real estate government insured loans. As part of this alignment, these loans were moved into nonaccrual status.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

Business Segment Descriptions (Unaudited)

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

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

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

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

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

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. BlackRock provides diversified investment management services to institutional clients, intermediary and individual investors through various investment vehicles. Investment management services primarily consist of the management of equity, fixed income, multi-asset class, alternative investment and cash management products. BlackRock offers its investment products in a variety of vehicles, including open-end and closed-end mutual funds, iShares^® exchange-traded funds (ETFs), collective investment trusts and separate accounts. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services to a broad base of clients. Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments (including long-term portfolio liquidation assignments), risk management and strategic planning and execution. We hold an equity investment in BlackRock, which is a key component of our diversified revenue strategy. BlackRock is a publicly traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At June 30, 2013, our economic interest in BlackRock was 22%.

Period End Employees


	June 30		March 31		December 31		September 30		June 30
	2013		2013		2012		2012		2012
Full-time employees
Retail Banking		22,476		22,985		23,331		23,403		23,388
Other full-time employees (a)		27,975		27,957		27,616		27,512		27,060
Total full-time employees		50,451		50,942		50,947		50,915		50,448
Part-time employees
Retail Banking		4,394		4,496		4,563		4,740		4,970
Other part-time employees (a)		935		734		775		879		1,215
Total part-time employees		5,329		5,230		5,338		5,619		6,185
Total		55,780		56,172		56,285		56,534		56,633

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

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


	Three months ended										Six months ended
In millions	June 30		March 31		December 31		September 30		June 30		June 30		June 30
Income (Loss)	2013		2013		2012		2012		2012		2013		2012
Retail Banking (c)	$	158	$	120	$	121	$	192	$	136	$	278	$	283
Corporate & Institutional Banking		612		541		649		607		577		1,153		1,072
Asset Management Group		36		43		34		37		38		79		74
Residential Mortgage Banking (d) (e)		20		45		(192)		36		(213)		65		(152)
Non-Strategic Assets Portfolio		60		79		59		40		67		139		138
Other, including BlackRock (b) (f) (g)		237		176		48		13		(59)		413		(58)
Net income	$	1,123	$	1,004	$	719	$	925	$	546	$	2,127	$	1,357

Revenue
Retail Banking (c)	$	1,554	$	1,483	$	1,677	$	1,664	$	1,551	$	3,037	$	2,987
Corporate & Institutional Banking		1,420		1,341		1,576		1,416		1,439		2,761		2,705
Asset Management Group		254		255		247		243		240		509		483
Residential Mortgage Banking (d)		228		291		58		284		(109)		519		184
Non-Strategic Assets Portfolio		175		219		218		204		223		394		421
Other, including BlackRock (b) (f)		433		366		293		277		279		799		575
Total revenue	$	4,064	$	3,955	$	4,069	$	4,088	$	3,623	$	8,019	$	7,355

(a)

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

(b)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our second quarter 2013 Form 10-Q will include additional information regarding BlackRock.

(c)	Includes gains on sales of a portion of Visa Class B common shares in the second quarter of 2013 and the fourth and third quarters of 2012. For more information, refer to Selected Noninterest Income Information on page 7.

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

(e)	Includes expenses for residential mortgage foreclosure-related matters. For more information, refer to Selected Noninterest Income Information on page 7.

(f)

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.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Retail Banking (Unaudited) (a)


	Three months ended															Six months ended
	June 30			March 31			December 31			September 30			June 30			June 30			June 30
Dollars in millions	2013			2013			2012			2012			2012			2013			2012
INCOME STATEMENT
Net interest income	$	1,012		$	1,049		$	1,081		$	1,076		$	1,114		$	2,061		$	2,159
Noninterest income
Service charges on deposits		141			129			143			146			137			270			258
Brokerage		58			52			48			47			49			110			94
Consumer services		229			216			220			214			213			445			404
Other		114			37			185			181			38			151			72
Total noninterest income		542			434			596			588			437			976			828
Total revenue		1,554			1,483			1,677			1,664			1,551			3,037			2,987
Provision for credit losses		148			162			280			220			165			310			300
Noninterest expense		1,156			1,131			1,206			1,140			1,171			2,287			2,240
Pretax earnings		250			190			191			304			215			440			447
Income taxes		92			70			70			112			79			162			164
Earnings	$	158		$	120		$	121		$	192		$	136		$	278		$	283
AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	29,212		$	28,913		$	28,920		$	28,881		$	28,761		$	29,063		$	27,499
Indirect auto		7,314			7,006			6,718			5,654			5,042			7,161			4,735
Indirect other		939			1,000			1,063			1,133			1,211			969			1,242
Education		7,982			8,220			8,370			8,611			9,100			8,101			9,270
Credit cards		4,061			4,108			4,138			4,108			4,075			4,085			4,001
Other		2,141			2,141			2,145			2,068			2,004			2,141			2,222
Total consumer		51,649			51,388			51,354			50,455			50,193			51,520			48,969
Commercial and commercial real estate		11,345			11,290			11,266			11,360			11,445			11,318			11,083
Floor plan		2,048			2,014			1,915			1,769			1,803			2,031			1,733
Residential mortgage		767			811			862			918			972			788			1,002
Total loans		65,809			65,503			65,397			64,502			64,413			65,657			62,787
Goodwill and other intangible assets		6,127			6,148			6,174			6,199			6,228			6,138			6,058
Other assets		2,580			2,465			2,565			2,589			2,452			2,522			2,575
Total assets	$	74,516		$	74,116		$	74,136		$	73,290		$	73,093		$	74,317		$	71,420
Deposits
Noninterest-bearing demand	$	21,187		$	20,744		$	20,900		$	20,660		$	20,381		$	20,967		$	19,572
Interest-bearing demand		32,004			31,183			29,526			28,506			28,265			31,595			26,986
Money market		48,645			48,291			47,859			47,557			47,271			48,469			45,436
Total transaction deposits		101,836			100,218			98,285			96,723			95,917			101,031			91,994
Savings		10,997			10,537			10,068			9,954			9,900			10,768			9,489
Certificates of deposit		21,823			22,683			23,531			24,746			26,468			22,251			27,309
Total deposits		134,656			133,438			131,884			131,423			132,285			134,050			128,792
Other liabilities		343			273			285			255			190			308			410
Capital		8,876			9,058			9,051			9,034			8,455			8,967			8,391
Total liabilities and equity	$	143,875		$	142,769		$	141,220		$	140,712		$	140,930		$	143,325		$	137,593
PERFORMANCE RATIOS
Return on average capital		7	%		5	%		5	%		8	%		6	%		6	%		7	%
Return on average assets		.85			.66			.65			1.04			.75			.75			.80
Noninterest income to total revenue		35			29			36			35			28			32			28
Efficiency		74			76			72			69			75			75			75

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

Retail Banking (Unaudited) (Continued)


	Three months ended															Six months ended
	June 30			March 31			December 31			September 30			June 30			June 30			June 30
Dollars in millions, except as noted	2013			2013			2012			2012			2012			2013			2012
OTHER INFORMATION (a)								.
Credit-related statistics:
Commercial nonperforming assets	$	222		$	230		$	245		$	266		$	275
Consumer nonperforming assets		1,068			1,050			902			799			685
Total nonperforming assets	$	1,290		$	1,280		$	1,147		$	1,065		$	960
Purchased impaired loans (b)	$	750		$	788		$	819		$	852		$	886
Commercial lending net charge-offs	$	22		$	37		$	34		$	19		$	38		$	59		$	66
Credit card lending net charge-offs		39			45			35			40			49			84			99
Consumer lending (excluding credit card) net charge-offs		91			168			148			160			100			259			213
Total net charge-offs	$	152		$	250		$	217		$	219		$	187		$	402		$	378
Commercial lending annualized net charge-off ratio		.66	%		1.13	%		1.03	%		.58	%		1.15	%		.89	%		1.04	%
Credit card lending annualized net charge-off ratio		3.85	%		4.44	%		3.36	%		3.87	%		4.84	%		4.15	%		4.98	%
Consumer lending (excluding credit card) annualized net charge-off ratio (g)		.75	%		1.42	%		1.22	%		1.35	%		.85	%		1.08	%		.93	%
Total annualized net charge-off ratio (g)		.93	%		1.55	%		1.32	%		1.35	%		1.17	%		1.23	%		1.21	%
Home equity portfolio credit statistics: (c)
% of first lien positions at origination (d)		50	%		48	%		42	%		41	%		39	%
Weighted-average loan-to-value ratios (LTVs) (d) (e)		85	%		85	%		81	%		80	%		78	%
Weighted-average updated FICO scores (f)		745			743			742			742			742
Annualized net charge-off ratio (g)		.82	%		1.97	%		1.35	%		1.58	%		.92	%		1.39	%		1.01	%
Delinquency data: (h)
Loans 30 - 59 days past due		.20	%		.23	%		.42	%		.25	%		.32	%
Loans 60 - 89 days past due		.08	%		.10	%		.22	%		.15	%		.18	%
Total accruing loans past due		.28	%		.33	%		.64	%		.40	%		.50	%
Nonperforming loans		3.12	%		3.01	%		2.64	%		2.28	%		1.98	%
Other statistics:
ATMs		7,335			7,303			7,282			7,261			7,206
Branches (i)		2,780			2,856			2,881			2,887			2,888
Full service brokerage offices		37			39			41			42			40
Brokerage account assets (billions)	$	39		$	39		$	38		$	38		$	36
Customer-related statistics: (in thousands)
Retail Banking checking relationships		6,589			6,534			6,475			6,451			6,349
Retail online banking active customers		4,271			4,234			4,227			4,117			3,953
Retail online bill payment active customers		1,270			1,260			1,236			1,219			1,189

(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 at June 30, 2013 and March 31, 2013 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)	Ratios for the three months ended March 31, 2013 and six months ended June 30, 2013 include additional consumer charge-offs taken as a result of alignment with interagency guidance on practices for loans and lines of credit we implemented in the first quarter of 2013.

(h)

Data based upon recorded investment. Past due amounts exclude purchased impaired loans, even if contractually past due, as we are currently accreting interest income over the expected life of the loans. In the first quarter of 2012, we adopted a policy stating that Home equity loans past due 90 days or more would be placed on nonaccrual status.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Corporate & Institutional Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012			June 30 2013			June 30 2012
INCOME STATEMENT
Net interest income	$	943		$	956		$	1,057		$	1,019		$	1,085		$	1,899		$	2,023
Noninterest income
Corporate service fees		297			246			324			258			248			543			448
Other		180			139			195			139			106			319			234
Noninterest income		477			385			519			397			354			862			682
Total revenue		1,420			1,341			1,576			1,416			1,439			2,761			2,705
Provision for credit losses (benefit)		(40)			14			9			(61)			33			(26)			52
Noninterest expense		499			480			549			520			496			979			959
Pretax earnings		961			847			1,018			957			910			1,808			1,694
Income taxes		349			306			369			350			333			655			622
Earnings	$	612		$	541		$	649		$	607		$	577		$	1,153		$	1,072
AVERAGE BALANCE SHEET
Loans
Commercial	$	54,489		$	52,893		$	51,081		$	50,636		$	49,087		$	53,696		$	46,004
Commercial real estate		17,002			16,876			16,517			16,226			15,928			16,939			15,158
Commercial - real estate related		6,978			6,826			6,562			6,008			5,545			6,902			5,258
Asset-based lending		11,611			11,181			10,893			10,406			9,755			11,397			9,510
Equipment lease financing		6,655			6,552			6,272			6,095			5,911			6,604			5,808
Total loans		96,735			94,328			91,325			89,371			86,226			95,538			81,738
Goodwill and other intangible assets		3,775			3,752			3,724			3,707			3,749			3,763			3,595
Loans held for sale		968			1,236			1,190			1,263			1,190			1,101			1,217
Other assets		10,729			12,355			12,842			12,582			11,670			11,539			11,316
Total assets	$	112,207		$	111,671		$	109,081		$	106,923		$	102,835		$	111,941		$	97,866
Deposits
Noninterest-bearing demand	$	39,910		$	40,572		$	40,607		$	37,685		$	37,813		$	40,239		$	37,519
Money market		16,932			17,023			16,500			16,237			15,734			16,977			14,803
Other		6,914			6,979			6,842			6,277			5,933			6,947			5,653
Total deposits		63,756			64,574			63,949			60,199			59,480			64,163			57,975
Other liabilities		17,059			18,779			19,107			19,201			17,551			17,914			16,769
Capital		9,495			9,588			9,787			9,937			8,815			9,541			8,676
Total liabilities and equity	$	90,310		$	92,941		$	92,843		$	89,337		$	85,846		$	91,618		$	83,420
PERFORMANCE RATIOS
Return on average capital		26	%		23	%		26	%		24	%		26	%		24	%		25	%
Return on average assets		2.19			1.96			2.37			2.26			2.26			2.08			2.20
Noninterest income to total revenue		34			29			33			28			25			31			25
Efficiency		35			36			35			37			34			35			35

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19

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


	Three months ended										Six months ended
Dollars in millions, except as noted	June 30 2013		March 31 2013		December 31 2012		September 30 2012		June 30 2012		June 30 2013		June 30 2012
COMMERCIAL MORTGAGE SERVICING
PORTFOLIO (in billions)
Beginning of period	$	290	$	282	$	265	$	264	$	268	$	282	$	267
Acquisitions/additions		18		21		35		12		7		39		17
Repayments/transfers		(14)		(13)		(18)		(11)		(11)		(27)		(20)
End of period	$	294	$	290	$	282	$	265	$	264	$	294	$	264
OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management (c)	$	313	$	329	$	337	$	346	$	354	$	642	$	697
Capital Markets (d)	$	196	$	131	$	228	$	175	$	151	$	327	$	307
Commercial mortgage loans held for sale (e)	$	31	$	38	$	44	$	13	$	34	$	69	$	47
Commercial mortgage loan servicing income, net of amortization (f)		53		53		57		55		53		106		83
Commercial mortgage servicing rights (impairment)/recovery, net of economic hedge		44		11		16		16		(6)		55		(1)
Total commercial mortgage banking activities	$	128	$	102	$	117	$	84	$	81	$	230	$	129
Total loans (g)	$	97,708	$	94,843	$	93,721	$	90,099	$	88,810
Net carrying amount of commercial mortgage servicing rights (g)	$	525	$	452	$	420	$	402	$	398
Credit-related statistics:
Nonperforming assets (g)	$	999	$	1,082	$	1,181	$	1,500	$	1,686
Purchased impaired loans (g) (h)	$	708	$	768	$	875	$	990	$	1,088
Net charge-offs (recoveries)	$	(19)	$	58	$	34	$	35	$	30	$	39	$	73

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

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

(f)

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

(g)	Presented as of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 20

Asset Management Group (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012			June 30 2013			June 30 2012
INCOME STATEMENT
Net interest income	$	70		$	73		$	74		$	73		$	75		$	143		$	150
Noninterest income		184			182			173			170			165			366			333
Total revenue		254			255			247			243			240			509			483
Provision for credit losses (benefit)		1			5			(2)			4			(1)			6			9
Noninterest expense		195			183			195			180			181			378			357
Pretax earnings		58			67			54			59			60			125			117
Income taxes		22			24			20			22			22			46			43
Earnings	$	36		$	43		$	34		$	37		$	38		$	79		$	74
AVERAGE BALANCE SHEET
Loans
Consumer	$	4,947		$	4,793		$	4,671		$	4,486		$	4,321		$	4,870		$	4,252
Commercial and commercial real estate		1,042			1,037			1,021			1,060			1,098			1,040			1,112
Residential mortgage		772			772			706			687			692			772			692
Total loans		6,761			6,602			6,398			6,233			6,111			6,682			6,056
Goodwill and other intangible assets		298			306			315			324			333			302			339
Other assets		230			223			226			214			215			226			218
Total assets	$	7,289		$	7,131		$	6,939		$	6,771		$	6,659		$	7,210		$	6,613
Deposits
Noninterest-bearing demand	$	1,249		$	1,331		$	1,573		$	1,336		$	1,362		$	1,290		$	1,468
Interest-bearing demand		3,475			3,616			3,009			2,662			2,674			3,545			2,656
Money market		3,722			3,841			3,562			3,466			3,535			3,781			3,593
Total transaction deposits		8,446			8,788			8,144			7,464			7,571			8,616			7,717
CDs/IRAs/savings deposits		441			454			461			465			490			448			519
Total deposits		8,887			9,242			8,605			7,929			8,061			9,064			8,236
Other liabilities		58			60			65			68			68			59			70
Capital		457			474			481			464			463			465			405
Total liabilities and equity	$	9,402		$	9,776		$	9,151		$	8,461		$	8,592		$	9,588		$	8,711
PERFORMANCE RATIOS
Return on average capital		32	%		37	%		28	%		32	%		33	%		34	%		37	%
Return on average assets		1.98			2.45			1.95			2.17			2.30			2.21			2.25
Noninterest income to total revenue		72			71			70			70			69			72			69
Efficiency		77			72			79			74			75			74			74
OTHER INFORMATION
Total nonperforming assets (b)	$	69		$	65		$	69		$	61		$	67
Purchased impaired loans (b) (c)	$	102		$	105		$	109		$	118		$	122
Total net charge-offs (recoveries)	$	2		$	3		$	2		$	(1)		$	3		$	5		$	5
ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	112		$	112		$	107		$	106		$	102
Institutional		121			124			117			116			112
Total	$	233		$	236		$	224		$	222		$	214
Asset Type
Equity	$	130		$	130		$	120		$	120		$	116
Fixed income		70			70			69			68			66
Liquidity/Other		33			36			35			34			32
Total	$	233		$	236		$	224		$	222		$	214
Discretionary assets under management
Personal	$	78		$	77		$	73		$	73		$	71
Institutional		39			41			39			39			38
Total	$	117		$	118		$	112		$	112		$	109
Asset Type
Equity	$	62		$	62		$	56		$	57		$	56
Fixed income		39			39			39			39			38
Liquidity/Other		16			17			17			16			15
Total	$	117		$	118		$	112		$	112		$	109
Nondiscretionary assets under administration
Personal	$	34		$	35		$	34		$	33		$	31
Institutional		82			83			78			77			74
Total	$	116		$	118		$	112		$	110		$	105
Asset Type
Equity	$	68		$	68		$	64		$	63		$	60
Fixed income		31			31			30			29			28
Liquidity/Other		17			19			18			18			17
Total	$	116		$	118		$	112		$	110		$	105

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

(b)	As of period end.

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

(d)	Excludes brokerage account assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 21

Residential Mortgage Banking (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions, except as noted	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012			June 30 2013			June 30 2012
INCOME STATEMENT
Net interest income	$	51		$	48		$	53		$	52		$	53		$	99		$	104
Noninterest income
Loan servicing revenue
Servicing fees		37			41			48			49			52			78			108
Net MSR hedging gains		26			37			2			7			39			63			110
Loan sales revenue
Provision for residential mortgage repurchase obligations		(73)			(4)			(254)			(37)			(438)			(77)			(470)
Loan sales revenue		190			172			213			216			177			362			318
Other		(3)			(3)			(4)			(3)			8			(6)			14
Total noninterest income		177			243			5			232			(162)			420			80
Total revenue		228			291			58			284			(109)			519			184
Provision for credit losses (benefit)		4			20			2			2			(2)			24			(9)
Noninterest expense		192			200			333			226			230			392			433
Pretax earnings (loss)		32			71			(277)			56			(337)			103			(240)
Income taxes (benefit)		12			26			(85)			20			(124)			38			(88)
Earnings (loss)	$	20		$	45		$	(192)		$	36		$	(213)		$	65		$	(152)
AVERAGE BALANCE SHEET
Portfolio loans	$	2,403		$	2,553		$	2,559		$	2,648		$	2,751		$	2,478		$	2,836
Loans held for sale		2,106			2,038			1,832			1,694			1,830			2,072			1,753
Mortgage servicing rights (MSR)		849			764			620			599			665			807			655
Other assets		5,049			5,448			6,120			6,560			6,255			5,247			6,501
Total assets	$	10,407		$	10,803		$	11,131		$	11,501		$	11,501		$	10,604		$	11,745
Deposits	$	3,260		$	3,106		$	3,286		$	3,492		$	1,783		$	3,183		$	1,723
Borrowings and other liabilities		3,216			3,487			3,729			4,198			4,067			3,351			4,209
Capital		1,492			1,752			1,830			1,488			1,157			1,622			995
Total liabilities and equity	$	7,968		$	8,345		$	8,845		$	9,178		$	7,007		$	8,156		$	6,927
PERFORMANCE RATIOS
Return on average capital		5	%		10	%		(42)	%		10	%		(74)	%		8	%		(31)	%
Return on average assets		.77			1.69			(6.86)			1.25			(7.45)			1.24			(2.60)
Noninterest income to total revenue		78			84			9			82			149			81			43
Efficiency		84			69			574			80			(211)			76			235
RESIDENTIAL MORTGAGE SERVICING PORTFOLIO - THIRD-PARTY (in billions)
Beginning of period	$	120		$	119		$	119		$	116		$	121		$	119		$	118
Acquisitions					6			6			8						6			7
Additions		4			4			4			4			2			8			6
Repayments/transfers		(8)			(9)			(10)			(9)			(7)			(17)			(15)
End of period	$	116		$	120		$	119		$	119		$	116		$	116		$	116
Servicing portfolio - third-party statistics: (b)
Fixed rate		92	%		92	%		92	%		91	%		91	%
Adjustable rate/balloon		8	%		8	%		8	%		9	%		9	%
Weighted-average interest rate		4.72	%		4.80	%		4.94	%		5.06	%		5.21	%
MSR capitalized value (in billions)	$	1.0		$	.8		$	.7		$	.6		$	.6
MSR capitalization value (in basis points)		84			65			54			50			50
Weighted-average servicing fee (in basis points)		28			28			28			29			29
RESIDENTIAL MORTGAGE REPURCHASE RESERVE
Beginning of period	$	522		$	614		$	421		$	462		$	101		$	614		$	83
Provision		73			4			254			37			438			77			470
RBC Bank (USA) acquisition																				26
Losses - loan repurchases and settlements		(72)			(96)			(61)			(78)			(77)			(168)			(117)
End of period	$	523		$	522		$	614		$	421		$	462		$	523		$	462
OTHER INFORMATION
Loan origination volume (in billions)	$	4.7		$	4.2		$	4.4		$	3.8		$	3.6		$	8.9		$	7.0
Loan sale margin percentage		4.04	%		4.07	%		4.87	%		5.68	%		4.89	%		4.05	%		4.54	%
Percentage of originations represented by:
Agency and government programs		100	%		100	%		100	%		100	%		100	%		100	%		100	%
Refinance volume		72	%		81	%		80	%		74	%		72	%		76	%		77	%
Total nonperforming assets (b)	$	220		$	236		$	134		$	82		$	78
Purchased impaired loans (b) (c)	$	8		$	24		$	38		$	69		$	84

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

(b)	As of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 22

Non-Strategic Assets Portfolio (Unaudited) (a)


	Three months ended															Six months ended
Dollars in millions	June 30 2013			March 31 2013			December 31 2012			September 30 2012			June 30 2012			June 30 2013			June 30 2012
INCOME STATEMENT
Net interest income	$	164		$	203		$	197		$	195		$	221		$	367		$	438
Noninterest income		11			16			21			9			2			27			(17)
Total revenue		175			219			218			204			223			394			421
Provision for credit losses		39			42			52			61			50			81			68
Noninterest expense		41			52			73			79			67			93			135
Pretax earnings		95			125			93			64			106			220			218
Income taxes		35			46			34			24			39			81			80
Earnings	$	60		$	79		$	59		$	40		$	67		$	139		$	138
AVERAGE BALANCE SHEET
Commercial Lending:
Commercial/Commercial real estate	$	437		$	537		$	720		$	846		$	1,008		$	487		$	1,006
Lease financing		694			688			684			678			675			691			672
Total commercial lending		1,131			1,225			1,404			1,524			1,683			1,178			1,678
Consumer Lending:
Home equity		4,122			4,158			4,325			4,498			4,668			4,139			4,758
Residential real estate		5,709			5,938			6,130			6,328			6,534			5,823			6,291
Total consumer lending		9,831			10,096			10,455			10,826			11,202			9,962			11,049
Total portfolio loans		10,962			11,321			11,859			12,350			12,885			11,140			12,727
Other assets (b)		(672)			(586)			(481)			(333)			(195)			(629)			(320)
Total assets	$	10,290		$	10,735		$	11,378		$	12,017		$	12,690		$	10,511		$	12,407
Deposits and other liabilities	$	275		$	168		$	186		$	189		$	180		$	222		$	179
Capital		1,113			1,094			1,188			1,278			1,311			1,104			1,244
Total liabilities and equity	$	1,388		$	1,262		$	1,374		$	1,467		$	1,491		$	1,326		$	1,423
PERFORMANCE RATIOS
Return on average capital		22	%		29	%		20	%		12	%		21	%		25	%		22	%
Return on average assets		2.34			2.98			2.06			1.32			2.12			2.67			2.24
Noninterest income to total revenue		6			7			10			4			1			7			(4)
Efficiency		23			24			33			39			30			24			32
OTHER INFORMATION
Nonperforming assets (c)	$	935		$	999		$	999		$	1,056		$	1,120
Purchased impaired loans (c) (d)	$	5,193		$	5,372		$	5,547		$	5,702		$	5,889
Net charge-offs	$	53		$	87		$	60		$	65		$	83		$	140		$	174
Annualized net charge-off ratio		1.94	%		3.12	%		2.01	%		2.09	%		2.59	%		2.53	%		2.75	%
LOANS (c)
Commercial Lending:
Commercial/Commercial real estate	$	388		$	493		$	665		$	795		$	945
Lease financing		696			690			686			680			677
Total commercial lending		1,084			1,183			1,351			1,475			1,622
Consumer Lending:
Home equity		4,029			4,209			4,237			4,408			4,575
Residential real estate		5,659			5,880			6,093			6,272			6,475
Total consumer lending		9,688			10,089			10,330			10,680			11,050
Total loans	$	10,772		$	11,272		$	11,681		$	12,155		$	12,672

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

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

(c)	As of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 23

Glossary Of Terms

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

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

Annualized - Adjusted to reflect a full year of activity.

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

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

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

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

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

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

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

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

Basis point - One hundredth of a percentage point.

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

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

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 24

Core net interest income - Core net interest income is total net interest income less purchase accounting accretion.

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

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

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

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

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

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

Efficiency - Noninterest expense divided by total revenue.

Fair value - The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

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

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

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

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

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

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

Loan-to-value ratio (LTV) - A calculation of a loan’s collateral coverage that is used both in underwriting and assessing credit risk in our lending portfolio. LTV is the sum total of loan obligations secured by collateral divided by the market value of that same collateral. Market values of the collateral are based on an independent valuation of the collateral. For example, an LTV of less than 90% is better secured and has less credit risk than an LTV of greater than or equal to 90%.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 25

Loss given default (LGD) - An estimate of loss, net of recovery based on collateral type, collateral value, loan exposure, or the guarantor(s) quality and guaranty type (full or partial). Each loan has its own LGD. The LGD risk rating measures the percentage of exposure of a specific credit obligation that we expect to lose if default occurs. LGD is net of recovery, through either liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.

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

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

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 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.

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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 26

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

Purchase accounting accretion - Accretion of the discounts and premiums on acquired assets and liabilities. The purchase accounting accretion is recognized in net interest income over the weighted-average life of the financial instruments using the constant effective yield method. Accretion for purchased impaired loans includes any cash recoveries received in excess of the recorded investment.

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

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

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

Residential development loans - Project-specific loans to commercial customers for the construction or development of residential real estate including land, single family homes, condominiums and other residential properties.

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

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

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

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

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

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

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

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

Total equity - Total shareholders’ equity plus noncontrolling interests.

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 27

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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