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

Attached files

file	filename
8-K - FORM 8-K - PNC FINANCIAL SERVICES GROUP, INC.	d605302d8k.htm
EX-99.2 - EX-99.2 - PNC FINANCIAL SERVICES GROUP, INC.	d605302dex992.htm

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2013

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD 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 October 16, 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															Nine months ended
In millions, except per share data	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
Interest Income
Loans	$	1,933		$	1,955		$	2,029		$	2,094		$	2,076		$	5,917		$	6,190
Investment securities		423			422			470			478			504			1,315			1,557
Other		92			92			112			99			90			296			316

Total interest income		2,448			2,469			2,611			2,671			2,670			7,528			8,063

Interest Expense
Deposits		84			86			93			97			103			263			289
Borrowed funds		130			125			129			150			168			384			558

Total interest expense		214			211			222			247			271			647			847

Net interest income		2,234			2,258			2,389			2,424			2,399			6,881			7,216

Noninterest Income
Asset management		330			340			308			302			305			978			867
Consumer services		316			314			296			294			288			926			842
Corporate services (a)		306			326			277			349			295			909			817
Residential mortgage (b) (c)		199			167			234			—			227			600			284
Service charges on deposits		156			147			136			150			152			439			423
Net gains on sales of securities		21			61			14			45			40			96			159
Net other-than-temporary impairments		(2	)		(4	)		(10	)		(15	)		(24	)		(16	)		(96	)
Other (d)		360			455			311			520			406			1,126			931

Total noninterest income		1,686			1,806			1,566			1,645			1,689			5,058			4,227

Total revenue		3,920			4,064			3,955			4,069			4,088			11,939			11,443
Provision For Credit Losses		137			157			236			318			228			530			669
Noninterest Expense
Personnel		1,181			1,186			1,169			1,216			1,171			3,536			3,401
Occupancy		205			206			211			226			212			622			601
Equipment		194			189			183			194			185			566			541
Marketing		68			67			45			70			74			180			209
Other		776			787			787			1,123			1,008			2,350			3,001

Total noninterest expense		2,424			2,435			2,395			2,829			2,650			7,254			7,753

Income before income taxes and noncontrolling interests		1,359			1,472			1,324			922			1,210			4,155			3,021
Income taxes		320			349			320			203			285			989			739

Net income		1,039			1,123			1,004			719			925			3,166			2,282

Less: Net income (loss) attributable to noncontrolling interests		2			1			(9	)		1			(14	)		(6	)		(13	)
Preferred stock dividends and discount accretion and redemptions		71			53			75			54			63			199			127

Net income attributable to common shareholders	$	966		$	1,069		$	938		$	664		$	876		$	2,973		$	2,168

Earnings Per Common Share
Basic	$	1.82		$	2.02		$	1.78		$	1.26		$	1.66		$	5.61		$	4.10
Diluted	$	1.79		$	1.99		$	1.76		$	1.24		$	1.64		$	5.55		$	4.06

Average Common Shares Outstanding
Basic		529			528			526			526			526			528			526
Diluted		534			531			528			528			529			531			529

Efficiency		62	%		60	%		61	%		70	%		65	%		61	%		68	%
Noninterest income to total revenue		43	%		44	%		40	%		40	%		41	%		42	%		37	%
Effective tax rate (e)		23.5	%		23.7	%		24.2	%		22.0	%		23.6	%		23.8	%		24.5	%

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

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

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

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

(d)	Includes gains on sales of Visa Class B common shares and credit valuations 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	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012
Assets
Cash and due from banks (a)	$	4,908		$	4,051		$	3,948		$	5,220		$	4,284
Federal funds sold and resale agreements (b)		911			1,613			1,274			1,463			1,724
Trading securities		1,603			2,109			2,243			2,096			2,664
Interest-earning deposits with banks (a)		8,047			3,797			1,541			3,984			2,321
Loans held for sale (b)		2,399			3,814			3,295			3,693			2,737
Investment securities (a)		57,260			57,449			59,361			61,406			62,814
Loans (a) (b)		192,856			189,775			186,504			185,856			181,864
Allowance for loan and lease losses (a)		(3,691	)		(3,772	)		(3,828	)		(4,036	)		(4,039	)

Net loans		189,165			186,003			182,676			181,820			177,825
Goodwill		9,074			9,075			9,075			9,072			9,163
Other intangible assets		2,194			2,153			1,921			1,797			1,778
Equity investments (a) (c)		10,303			10,054			11,008			10,877			10,846
Other (a) (b)		22,733			24,297			24,470			23,679			24,647

Total assets	$	308,597		$	304,415		$	300,812		$	305,107		$	300,803

Liabilities
Deposits
Noninterest-bearing	$	68,747		$	66,708		$	64,652		$	69,980		$	64,484
Interest-bearing		147,327			145,571			146,968			143,162			141,779

Total deposits		216,074			212,279			211,620			213,142			206,263
Borrowed funds
Federal funds purchased and repurchase agreements		3,165			4,303			4,000			3,327			3,877
Federal Home Loan Bank borrowings		8,479			8,481			5,483			9,437			9,942
Bank notes and senior debt		11,924			11,177			10,918			10,429			9,960
Subordinated debt		7,829			7,113			7,996			7,299			6,754
Commercial paper (a)		6,994			6,400			6,953			8,453			10,731
Other (a) (b)		1,882			2,390			2,297			1,962			1,840

Total borrowed funds		40,273			39,864			37,647			40,907			43,104
Allowance for unfunded loan commitments and letters of credit		235			242			238			250			239
Accrued expenses (a)		4,673			4,057			4,181			4,449			4,015
Other (a)		4,522			6,032			5,048			4,594			5,380

Total liabilities		265,777			262,474			258,734			263,342			259,001

Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 539, 539, 538, 538, and 538 shares		2,695			2,693			2,690			2,690			2,689
Capital surplus - preferred stock		3,940			3,939			3,591			3,590			3,559
Capital surplus - common stock and other		12,310			12,234			12,174			12,193			12,149
Retained earnings		22,561			21,828			20,993			20,265			19,813
Accumulated other comprehensive income (loss)		47			45			767			834			991
Common stock held in treasury at cost: 7, 8, 9, 10, and 9 shares		(423	)		(453	)		(552	)		(569	)		(518	)

Total shareholders’ equity		41,130			40,286			39,663			39,003			38,683
Noncontrolling interests		1,690			1,655			2,415			2,762			3,119

Total equity		42,820			41,941			42,078			41,765			41,802

Total liabilities and equity	$	308,597		$	304,415		$	300,812		$	305,107		$	300,803

Capital Ratios
Basel 1 Ratios
Tier 1 common (e)		10.4	%		10.1	%		9.8	%		9.6	%		9.5	%
Tier 1 risk-based (e)		12.3			12.0			11.6			11.6			11.7
Total risk-based (e)		15.7			15.2			14.9			14.7			14.5
Leverage (e)		11.1			10.9			10.4			10.4			10.4
Common shareholders’ equity to assets		12.1			11.9			12.0			11.6			11.7

(a)	Amounts include consolidated variable interest entities. Our first and second quarter 2013 Form 10-Qs included, and third 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 and second quarter 2013 Form 10-Qs included, and third 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 September 30, 2013 is estimated.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Average Consolidated Balance Sheet (Unaudited) (a)


	Three months ended															Nine months ended
In millions	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	23,674		$	24,339		$	25,168		$	25,552		$	26,546		$	24,388		$	26,847
Non-agency		5,862			5,889			6,025			6,245			6,490			5,925			6,594
Commercial mortgage-backed		4,349			3,855			3,745			3,674			3,720			3,985			3,685
Asset-backed		5,962			5,919			5,731			5,643			5,525			5,872			5,087
U.S. Treasury and government agencies		2,013			2,074			2,715			2,746			2,516			2,265			2,729
State and municipal		2,354			2,182			2,189			2,034			1,972			2,242			1,882
Other debt		2,630			2,728			2,649			2,860			3,045			2,669			3,073
Corporate stocks and other		339			304			368			346			390			337			351

Total securities available for sale		47,183			47,290			48,590			49,100			50,204			47,683			50,248
Securities held to maturity
Residential mortgage-backed		3,794			3,833			4,146			4,377			4,480			3,923			4,438
Commercial mortgage-backed		3,276			3,521			3,747			3,967			4,180			3,513			4,396
Asset-backed		1,064			978			826			702			825			957			956
U.S. Treasury and government agencies		236			233			231			229			227			233			225
State and municipal		658			640			639			664			671			646			671
Other		346			349			352			355			357			349			359

Total securities held to maturity		9,374			9,554			9,941			10,294			10,740			9,621			11,045

Total investment securities		56,557			56,844			58,531			59,394			60,944			57,304			61,293
Loans
Commercial		86,456			86,015			83,476			80,876			79,250			85,326			75,237
Commercial real estate		19,558			18,860			18,850			18,678			18,514			19,092			17,927
Equipment lease financing		7,296			7,350			7,241			6,956			6,774			7,296			6,580
Consumer		62,277			61,587			61,411			61,430			60,570			61,761			59,188
Residential real estate		14,918			14,794			15,121			15,257			15,575			14,944			15,478

Total loans		190,505			188,606			186,099			183,197			180,683			188,419			174,410
Loans held for sale		3,071			3,072			3,279			3,025			2,956			3,140			2,961
Federal funds sold and resale agreements		664			1,141			1,176			1,290			1,601			992			1,696
Other		8,809			6,439			7,095			6,737			6,422			7,474			6,485

Total interest-earning assets		259,606			256,102			256,180			253,643			252,606			257,329			246,845
Noninterest-earning assets:
Allowance for loan and lease losses		(3,761	)		(3,821	)		(3,937	)		(3,987	)		(4,152	)		(3,839	)		(4,214	)
Cash and due from banks		3,984			3,869			4,055			4,126			3,907			3,969			3,793
Other		43,479			45,877			47,147			48,349			47,781			45,467			46,215

Total assets	$	303,308		$	302,027		$	303,445		$	302,131		$	300,142		$	302,926		$	292,639

(a)	Calculated using average daily balances.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

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


	Three months ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
In millions	2013		2013		2013		2012		2012		2013		2012
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	70,557	$	69,123	$	69,003	$	67,997	$	67,628	$	69,567	$	65,240
Demand		39,866		40,172		39,372		36,619		34,733		39,805		33,577
Savings		11,007		11,124		10,671		10,190		10,066		10,935		9,754
Retail certificates of deposit		21,859		22,641		23,488		24,394		25,695		22,657		27,353
Time deposits in foreign offices and other time		1,804		2,164		2,267		2,740		3,230		2,077		3,348

Total interest-bearing deposits		145,093		145,224		144,801		141,940		141,352		145,041		139,272
Borrowed funds
Federal funds purchased and repurchase agreements		2,967		4,132		4,328		4,023		4,659		3,804		4,716
Federal Home Loan Bank borrowings		8,208		7,218		7,657		8,877		10,626		7,697		9,946
Bank notes and senior debt		11,256		10,886		10,469		9,702		9,657		10,873		10,468
Subordinated debt		7,334		7,003		7,249		6,668		6,408		7,196		7,137
Commercial paper		7,109		7,263		7,967		9,069		10,518		7,443		8,152
Other		1,792		2,099		2,057		1,961		1,868		1,981		1,943

Total borrowed funds		38,666		38,601		39,727		40,300		43,736		38,994		42,362

Total interest-bearing liabilities		183,759		183,825		184,528		182,240		185,088		184,035		181,634
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		66,834		64,749		64,850		65,527		62,483		65,485		60,295
Allowance for unfunded loan commitments and letters of credit		242		238		249		239		225		243		236
Accrued expenses and other liabilities		10,372		10,929		11,891		12,237		11,590		11,058		11,052
Equity		42,101		42,286		41,927		41,888		40,756		42,105		39,422

Total liabilities and equity	$	303,308	$	302,027	$	303,445	$	302,131	$	300,142	$	302,926	$	292,639

(a) Calculated using average daily balances.

Supplemental Average Balance Sheet Information (Unaudited)
Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	145,093	$	145,224	$	144,801	$	141,940	$	141,352	$	145,041	$	139,272
Noninterest-bearing deposits		66,834		64,749		64,850		65,527		62,483		65,485		60,295

Total deposits	$	211,927	$	209,973	$	209,651	$	207,467	$	203,835	$	210,526	$	199,567
Transaction deposits	$	177,257	$	174,044	$	173,225	$	170,143	$	164,844	$	174,857	$	159,112
Common shareholders’ equity	$	36,483	$	36,310	$	35,628	$	35,296	$	34,323	$	36,144	$	33,654


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Details of Net Interest Margin (Unaudited) (a)


	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
	2013			2013			2013			2012			2012			2013			2012
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency		2.36	%		2.50	%		2.90	%		2.94	%		3.03	%		2.59	%		3.11	%
Non-agency		5.70			5.51			5.40			5.39			5.08			5.54			5.37
Commercial mortgage-backed		3.82			4.00			4.02			3.81			4.29			3.94			4.37
Asset-backed		1.87			1.80			1.92			1.93			2.09			1.86			2.07
U.S. Treasury and government agencies		1.90			1.37			1.65			1.76			2.08			1.64			2.05
State and municipal		4.24			4.48			4.93			4.66			4.62			4.30			4.78
Other debt		2.38			2.39			2.58			2.91			2.85			2.45			2.65
Corporate stocks and other		.12			.14			.12			.24			.12			.12			.09
Total securities available for sale		2.91			2.93			3.16			3.19			3.27			2.99			3.35
Securities held to maturity
Residential mortgage-backed		3.92			3.26			3.44			3.34			3.50			3.54			3.59
Commercial mortgage-backed		4.29			4.34			4.71			4.50			4.46			4.46			4.55
Asset-backed		1.59			1.74			1.80			1.76			2.61			1.70			1.99
U.S. Treasury and government agencies		3.81			3.80			3.77			3.82			3.81			3.79			3.79
State and municipal		5.55			4.27			4.23			4.23			4.18			5.55			4.19
Other		2.90			2.89			2.82			2.89			2.82			2.87			2.84
Total securities held to maturity		3.86			3.57			3.82			3.73			3.83			3.81			3.85
Total investment securities		3.06			3.04			3.27			3.28			3.37			3.13			3.44
Loans
Commercial		3.62			3.71			4.03			4.16			4.30			3.78			4.52
Commercial real estate		4.64			4.84			5.05			5.57			5.26			4.84			5.42
Equipment lease financing		3.75			4.41			4.05			4.26			4.45			4.07			4.71
Consumer		4.31			4.40			4.67			4.68			4.63			4.46			4.69
Residential real estate		5.00			5.13			5.29			5.36			5.18			5.14			5.40
Total loans		4.06			4.19			4.45			4.58			4.59			4.23			4.76
Loans held for sale		5.34			4.22			6.49			5.34			4.34			5.37			5.73
Federal funds sold and resale agreements		1.10			.61			.74			1.04			1.22			.77			1.43
Other		2.26			3.66			3.25			3.24			3.27			2.97			3.53
Total yield on interest-earning assets		3.79			3.91			4.15			4.24			4.24			3.95			4.39
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market		.18			.18			.19			.19			.21			.18			.21
Demand		.05			.05			.04			.04			.04			.05			.04
Savings		.10			.10			.10			.09			.09			.10			.10
Retail certificates of deposit		.79			.82			.85			.89			.90			.82			.76
Time deposits in foreign offices and other time		.22			.43			.61			.45			.38			.43			.45
Total interest-bearing deposits		.23			.24			.26			.27			.29			.24			.28
Borrowed funds
Federal funds purchased and repurchase agreements		.15			.14			.16			.20			.19			.15			.21
Federal Home Loan Bank borrowings		.48			.53			.61			.70			.69			.54			.74
Bank notes and senior debt		1.71			1.71			1.83			2.07			2.16			1.74			2.32
Subordinated debt		2.89			2.78			2.83			3.57			4.71			2.84			4.87
Commercial paper		.22			.22			.25			.28			.28			.23			.27
Other		2.91			2.62			2.28			2.78			2.43			2.59			2.23
Total borrowed funds		1.33			1.28			1.30			1.46			1.53			1.31			1.74
Total rate on interest-bearing liabilities		.46			.46			.48			.54			.58			.47			.62

Interest rate spread		3.33			3.45			3.67			3.70			3.66			3.48			3.77
Impact of noninterest-bearing sources		.14			.13			.14			.15			.16			.14			.16

Net interest margin		3.47	%		3.58	%		3.81	%		3.85	%		3.82	%		3.62	%		3.93	%

(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 September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, were $43 million, $40 million, $40 million, $42 million and $36 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2013 and September 30, 2012 were $123 million and $102 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															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
In millions	2013			2013			2013			2012			2012			2013			2012
Core net interest income (a)	$	2,035		$	2,054		$	2,140		$	2,151		$	2,154		$	6,229		$	6,365
Total purchase accounting accretion (a)(b)		199			204			249			273			245			652			851

Total net interest income	$	2,234		$	2,258		$	2,389		$	2,424		$	2,399		$	6,881		$	7,216

(a) We believe that core net interest income and purchase accounting accretion are useful in evaluating the components of net interest income. (b) Total purchase accounting accretion includes purchase accounting accretion on purchased impaired loans. Refer to the Accretion-Purchased Impaired Loans table on page 10 for details.
Details of Net Interest Margin (c)
	Three months ended															Nine months ended
In millions	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
Average yields/rates
Yield on interest earning assets
Total investment securities		3.06	%		3.04	%		3.27	%		3.28	%		3.37	%		3.13	%		3.44	%
Total loans		4.06			4.19			4.45			4.58			4.59			4.23			4.76
Other		2.96			3.50			3.91			3.56			3.26			3.43			3.80
Total yield on interest earning assets		3.79			3.91			4.15			4.24			4.24			3.95			4.39

Rate on interest-bearing liabilities
Total interest-bearing deposits		.23			.24			.26			.27			.29			.24			.28
Total borrowed funds		1.33			1.28			1.30			1.46			1.53			1.31			1.74
Total rate on interest-bearing liabilities		.46			.46			.48			.54			.58			.47			.62

Interest rate spread		3.33			3.45			3.67			3.70			3.66			3.48			3.77
Impact of noninterest-bearing sources		.14			.13			.14			.15			.16			.14			.16

Net interest margin		3.47	%		3.58	%		3.81	%		3.85	%		3.82	%		3.62	%		3.93	%


(c) See note (a) on page 5. Details of Core Net Interest Margin (d)
	Three months ended															Nine months ended
In millions	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
Average yields/rates
Yield on interest earning assets
Total investment securities		2.96	%		2.95	%		3.21	%		3.17	%		3.27	%		3.05	%		3.34	%
Total loans		3.68			3.77			3.96			4.02			4.09			3.80			4.22
Other		2.74			3.69			3.22			3.35			3.11			3.18			3.50
Total yield on interest earning assets		3.48			3.58			3.75			3.80			3.85			3.60			3.97

Rate on interest-bearing liabilities
Total interest-bearing deposits		.26			.27			.29			.31			.34			.27			.42
Total borrowed funds		1.18			1.12			1.09			1.23			1.31			1.13			1.51
Total rate on interest-bearing liabilities		.45			.45			.46			.52			.57			.46			.67
Interest rate spread		3.03			3.13			3.29			3.28			3.28			3.14			3.30
Impact of noninterest-bearing sources		.14			.13			.14			.15			.16			.14			.16

Core net interest margin		3.17			3.26			3.43			3.43			3.44			3.28			3.46
Purchase accounting accretion impact on net interest margin		.30			.32			.38			.42			.38			.34			.47

Net interest margin		3.47	%		3.58	%		3.81	%		3.85	%		3.82	%		3.62	%		3.93	%

(d)

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Per Share Related Information (Unaudited)


	Three months ended												Nine months ended
In millions, except per share data	September 30 2013		June 30 2013		March 31 2013			December 31 2012		September 30 2012			September 30 2013			September 30 2012
Basic
Net income	$	1,039	$	1,123	$	1,004		$	719	$	925		$	3,166		$	2,282
Less:
Net income (loss) attributable to noncontrolling interests		2		1		(9	)		1		(14	)		(6	)		(13	)
Preferred stock dividends and discount accretion and redemptions		71		53		75			54		63			199			127
Dividends and undistributed earnings allocated to nonvested restricted shares		4		5		4			4		5			13			10

Net income attributable to basic common shares	$	962	$	1,064	$	934		$	660	$	871		$	2,960		$	2,158
Basic weighted-average common shares outstanding		529		528		526			526		526			528			526
Basic earnings per common share	$	1.82	$	2.02	$	1.78		$	1.26	$	1.66		$	5.61		$	4.10

Diluted
Net income attributable to basic common shares	$	962	$	1,064	$	934		$	660	$	871		$	2,960		$	2,158
Less: Impact of BlackRock earnings per share dilution		4		4		5			4		3			13			10

Net income attributable to diluted common shares	$	958	$	1,060	$	929		$	656	$	868		$	2,947		$	2,148
Basic weighted-average common shares outstanding		529		528		526			526		526			528			526
Dilutive potential common shares		5		3		2			2		3			3			3

Diluted weighted-average common shares outstanding		534		531		528			528		529			531			529
Diluted earnings per common share	$	1.79	$	1.99	$	1.76		$	1.24	$	1.64		$	5.55		$	4.06

Selected Noninterest Income Information (Unaudited)


	Three months ended															Nine months ended
In millions, except per share data	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
Increase (Decrease) to Noninterest Income and Impact on Diluted Earnings per Share
Commercial mortgage servicing rights recovery, net of economic hedge (Pre-tax)	$	18		$	44		$	11		$	16		$	16		$	73		$	15
Impact on diluted earnings per share (a)		.02			.05			.01			.02			.02			.09			.02

Benefit / (provision) for residential mortgage repurchase obligations (Pre-tax)	$	6		$	(73	)	$	(4	)	$	(254	)	$	(37	)	$	(71	)	$	(507	)
Impact on diluted earnings per share (a)		.01			(.09	)		(.00	)		(.31	)		(.05	)		(.09	)		(.62	)

Net gains on sales of securities (Pre-tax)	$	21		$	61		$	14		$	45		$	40		$	96		$	159
Impact on diluted earnings per share (a)		.02			.08			.02			.06			.05			.12			.20

Gains on sales of Visa Class B common shares (Pre-tax)	$	85		$	83					$	130		$	137		$	168			137
Impact on diluted earnings per share (a)		.10			.10						.16			.17			.21			.17

Credit valuations related to customer initiated hedging activities (Pre-tax)	$	(1	)	$	39		$	2		$	17		$	18		$	40		$	(10	)
Impact on diluted earnings per share (a)		(.00	)		.05			.00			.02			.02			.05			(.01	)

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Loans (Unaudited)


In millions	September 30 2013		June 30 2013		March 31 2013		December 31 2012		September 30 2012
Commercial
Retail/wholesale trade	$	15,178	$	15,192	$	14,784	$	14,353	$	14,062
Manufacturing		15,406		15,525		15,349		14,841		14,554
Service providers		12,973		13,267		13,057		12,606		12,330
Real estate related (a)		10,554		10,248		10,274		10,616		10,208
Financial services		5,685		5,326		4,740		4,356		4,320
Health care		8,266		8,228		7,912		7,763		7,152
Other industries		18,928		19,144		18,169		18,505		17,042

Total commercial (b)		86,990		86,930		84,285		83,040		79,668

Commercial real estate
Real estate projects (c)		13,036		12,636		12,596		12,347		12,801
Commercial mortgage		7,095		6,355		6,183		6,308		5,808

Total commercial real estate		20,131		18,991		18,779		18,655		18,609

Equipment lease financing		7,314		7,349		7,240		7,247		6,923

Total commercial lending		114,435		113,270		110,304		108,942		105,200

Consumer
Home equity
Lines of credit		22,043		22,559		23,029		23,576		24,007
Installment		14,548		13,857		13,001		12,344		11,871
Credit card		4,242		4,135		4,081		4,303		4,135
Other consumer
Education		7,711		7,814		8,048		8,238		8,415
Automobile		10,259		9,066		8,716		8,708		8,328
Other		4,226		4,297		4,340		4,505		4,525

Total consumer		63,029		61,728		61,215		61,674		61,281

Residential real estate
Residential mortgage		14,709		14,051		14,217		14,430		14,505
Residential construction		683		726		768		810		878

Total residential real estate		15,392		14,777		14,985		15,240		15,383

Total consumer lending		78,421		76,505		76,200		76,914		76,664

Total loans (d)	$	192,856	$	189,775	$	186,504	$	185,856	$	181,864

(a) Includes loans to customers in the real estate and construction industries.
(b) During the third quarter of 2013, PNC revised its policy to classify loans initiated through a Special Purpose Entity (SPE) to be reported based upon the nature of the sponsor of the SPE instead of reported based upon the nature of the SPE itself. This resulted in a reclassification of loans amounting to $5.5 billion, $4.9 billion, $4.7 billion and $4.8 billion at June 30, 2013, March 31, 2013, December 31, 2012 and September 30, 2012, respectively, that were previously classified as Financial Services to other categories within Commercial Lending.
(c) Includes both construction loans and intermediate financing for projects.
(d) Includes purchased impaired loans:	$	6,398	$	6,778	$	7,073	$	7,406	$	7,749

Details of Loans Held for Sale (Unaudited)


In millions	September 30 2013		June 30 2013		March 31 2013		December 31 2012		September 30 2012
Commercial mortgage	$	785	$	1,072	$	895	$	1,392	$	1,183
Residential mortgage		1,613		2,353		2,331		2,220		1,477
Other		1		389		69		81		77

Total	$	2,399	$	3,814	$	3,295	$	3,693	$	2,737

Net Unfunded Commitments (Unaudited)
In millions	September 30 2013		June 30 2013		March 31 2013		December 31 2012		September 30 2012
Net unfunded commitments	$	126,577	$	124,142	$	121,812	$	120,592	$	118,285


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	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012
Beginning balance	$	3,772		$	3,828		$	4,036		$	4,039		$	4,156
Gross charge-offs:
Commercial		(113	)		(81	)		(114	)		(126	)		(114	)
Commercial real estate		(42	)		(51	)		(86	)		(72	)		(83	)
Equipment lease financing		(2	)		(1	)		(3	)		(4	)		(2	)
Home equity (a)		(86	)		(92	)		(194	)		(141	)		(167	)
Residential real estate (a)		(9	)		(43	)		(79	)		(18	)		(25	)
Credit card (a)		(41	)		(45	)		(50	)		(43	)		(47	)
Other consumer (a)		(47	)		(43	)		(43	)		(56	)		(43	)

Total gross charge-offs (b)		(340	)		(356	)		(569	)		(460	)		(481	)
Recoveries:
Commercial		54			66			63			77			76
Commercial real estate		24			33			13			29			34
Equipment lease financing		3			4			6			8			7
Home equity		18			24			13			15			16
Residential real estate		(2	)		1			(1	)					(1	)
Credit card		6			6			5			9			6
Other consumer		13			14			14			12			12

Total recoveries		116			148			113			150			150
Net (charge-offs) recoveries:
Commercial		(59	)		(15	)		(51	)		(49	)		(38	)
Commercial real estate		(18	)		(18	)		(73	)		(43	)		(49	)
Equipment lease financing		1			3			3			4			5
Home equity		(68	)		(68	)		(181	)		(126	)		(151	)
Residential real estate		(11	)		(42	)		(80	)		(18	)		(26	)
Credit card		(35	)		(39	)		(45	)		(34	)		(41	)
Other consumer		(34	)		(29	)		(29	)		(44	)		(31	)

Total net charge-offs		(224	)		(208	)		(456	)		(310	)		(331	)
Provision for credit losses		137			157			236			318			228
Other		(1	)		(1	)								1
Net change in allowance for unfunded loan commitments and letters of credit		7			(4	)		12			(11	)		(15	)

Ending balance	$	3,691		$	3,772		$	3,828		$	4,036		$	4,039

Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized) (b)		.47	%		.44	%		.99	%		.67	%		.73	%
Allowance for loan and lease losses to total loans		1.91			1.99			2.05			2.17			2.22
Commercial lending net charge-offs	$	(76	)	$	(30	)	$	(121	)	$	(88	)	$	(82	)
Consumer lending net charge-offs		(148	)		(178	)		(335	)		(222	)		(249	)

Total net charge-offs	$	(224	)	$	(208	)	$	(456	)	$	(310	)	$	(331	)
Net charge-offs to average loans

Commercial lending		.27	%		.11	%		.45	%		.33	%		.31	%
Consumer lending		.76			.93			1.78			1.15			1.30

(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	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012
Beginning balance	$	242		$	238		$	250		$	239		$	224
Net change in allowance for unfunded loan commitments and letters of credit		(7	)		4			(12	)		11			15

Ending balance	$	235		$	242		$	238		$	250		$	239


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									Nine months ended
In millions	September 30 2013			June 30 2013			September 30 2012			September 30 2013			September 30 2012
Impaired loans
Scheduled accretion	$	145		$	150		$	175		$	452		$	511
Reversal of contractual interest on impaired loans		(82	)		(83	)		(103	)		(250	)		(311	)

Scheduled accretion net of contractual interest		63			67			72			202			200
Excess cash recoveries		26			11			21			87			112

Total impaired loans	$	89		$	78		$	93		$	289		$	312

Purchased Impaired Loans - Accretable Yield


In millions				In millions
July 1, 2013	$	2,164		January 1, 2013	$	2,166
Scheduled accretion		(145	)	Scheduled accretion		(452	)
Excess cash recoveries		(26	)	Excess cash recoveries		(87	)
Net reclassifications to accretable from non-accretable and other activity (a)		191		Net reclassifications to accretable from non-accretable and other activity (a)		557

September 30, 2013 (b)	$	2,184		September 30, 2013 (b)	$	2,184

(a)

Approximately 64% and 60% of the net reclassifications for the third quarter and first nine 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 September 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


	September 30, 2013						June 30, 2013						December 31, 2012
Dollars in millions	Balance			Net Investment			Balance			Net Investment			Balance			Net Investment
Commercial and commercial real estate loans:
Unpaid principal balance	$	1,071					$	1,299					$	1,680
Purchased impaired mark		(289	)					(331	)					(431	)

Recorded investment		782						968						1,249
Allowance for loan losses		(154	)					(183	)					(239	)

Net investment		628			59	%		785			60	%		1,010			60	%

Consumer and residential mortgage loans:
Unpaid principal balance		5,805						6,095						6,639
Purchased impaired mark		(189	)					(285	)					(482	)

Recorded investment		5,616						5,810						6,157
Allowance for loan losses		(907	)					(934	)					(858	)

Net investment		4,709			81	%		4,876			80	%		5,299			80	%

Total purchased impaired loans:
Unpaid principal balance		6,876						7,394						8,319
Purchased impaired mark		(478	)					(616	)					(913	)

Recorded investment		6,398						6,778						7,406
Allowance for loan losses		(1,061	)					(1,117	)					(1,097	)

Net investment	$	5,337			78	%	$	5,661			77	%	$	6,309			76	%


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type


In millions	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012
Nonperforming loans, including TDRs (a)
Commercial lending
Commercial
Retail/wholesale trade	$	72		$	63		$	62		$	61		$	88
Manufacturing		61			62			75			73			104
Service providers		109			110			112			124			144
Real estate related (b)		142			163			161			178			236
Financial services		11			14			13			9			13
Health care		26			24			21			25			26
Other industries		77			85			98			120			138

Total commercial		498			521			542			590			749

Commercial real estate
Real estate projects		493			516			606			654			802
Commercial mortgage		105			123			138			153			198

Total commercial real estate		598			639			744			807			1,000

Equipment lease financing		6			7			9			13			15

Total commercial lending		1,102			1,167			1,295			1,410			1,764

Consumer lending (c)
Home equity (d)		1,137			1,131			1,088			951			818
Residential real estate
Residential mortgage (d)		891			947			952			824			766
Residential construction		11			15			13			21			24
Credit card		4			4			6			5			5
Other consumer (d)		61			57			68			43			37

Total consumer lending (e)		2,104			2,154			2,127			1,844			1,650

Total nonperforming loans (f)		3,206			3,321			3,422			3,254			3,414

OREO and foreclosed assets
Other real estate owned (OREO) (g)		403			432			472			507			578
Foreclosed and other assets		13			25			33			33			29

Total OREO and foreclosed assets		416			457			505			540			607

Total nonperforming assets	$	3,622		$	3,778		$	3,927		$	3,794		$	4,021

Nonperforming loans to total loans		1.66	%		1.75	%		1.83	%		1.75	%		1.88	%
Nonperforming assets to total loans, OREO and foreclosed assets		1.87			1.99			2.10			2.04			2.20
Nonperforming assets to total assets		1.17			1.24			1.31			1.24			1.34
Allowance for loan and lease losses to nonperforming loans (h)		115			114			112			124			118

(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 $264 million, $311 million, $383 million, $380 million and $363 million at September 30, 2013, June 30, 2013, March 31, 2013, December 31, 2012 and September 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	July 1, 2013 - September 30, 2013			April 1, 2013 - June 30, 2013			January 1, 2013 - March 31, 2013			October 1, 2012 - December 31, 2012			July 1, 2012 - September 30, 2012
Beginning balance	$	3,778		$	3,927		$	3,794		$	4,021		$	4,176
New nonperforming assets		824			773			1,032			804			861
Charge-offs and valuation adjustments		(220	)		(216	)		(343	)		(297	)		(392	)
Principal activity, including paydowns and payoffs		(289	)		(328	)		(258	)		(532	)		(438	)
Asset sales and transfers to loans held for sale		(117	)		(146	)		(114	)		(134	)		(162	)
Returned to performing status		(354	)		(232	)		(184	)		(68	)		(24	)

Ending balance	$	3,622		$	3,778		$	3,927		$	3,794		$	4,021

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


In millions
Ranking	Outstandings		Industry
1	$	36	Real Estate, Rental and Leasing
2		30	Real Estate, Rental and Leasing
3		16	Real Estate, Rental and Leasing
4		13	Real Estate, Rental and Leasing
5		12	Wholesale Trade
6		11	Other Services
7		10	Real Estate, Rental and Leasing
8		9	Construction
9		8	Other Real Estate Owned
10		8	Real Estate, Rental and Leasing

Total	$	153

As a percent of total nonperforming assets 4%

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

Summary of Troubled Debt Restructurings


In millions	September 30 2013		June 30 2013		March 31 2013		December 31 2012		September 30 2012
Total consumer lending (a)	$	2,221	$	2,243	$	2,231	$	2,318	$	2,019
Total commercial lending		581		599		610		541		556

Total TDRs	$	2,802	$	2,842	$	2,841	$	2,859	$	2,575

Nonperforming	$	1,451	$	1,531	$	1,517	$	1,589	$	1,383
Accruing (b)		1,178		1,103		1,103		1,037		950
Credit card (c)		173		208		221		233		242

Total TDRs	$	2,802	$	2,842	$	2,841	$	2,859	$	2,575

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	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012
Commercial	$	73	$	85	$	163	$	115	$	141		.08	%		.10	%		.19	%		.14	%		.18	%
Commercial real estate		54		66		111		100		91		.27			.35			.59			.54			.49
Equipment lease financing		6		2		34		17		8		.08			.03			.47			.23			.12
Home equity		88		76		86		117		130		.24			.21			.24			.33			.36
Residential real estate
Non government insured		118		120		145		151		147		.77			.81			.97			.99			.96
Government insured		109		110		114		127		127		.71			.74			.76			.83			.80
Credit card		30		27		30		34		31		.71			.65			.74			.79			.75
Other consumer
Non government insured		56		52		49		65		54		.25			.25			.23			.30			.25
Government insured		170		148		162		193		154		.77			.70			.77			.90			.72

Total	$	704	$	686	$	894	$	919	$	883		.37			.36			.48			.49			.49


Accruing Loans Past Due 60 to 89 Days (a) (b)
	Amount										Percent of Total Outstandings
Dollars in millions	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012
Commercial	$	37	$	53	$	35	$	55	$	92		.04	%		.06	%		.04	%		.07	%		.12	%
Commercial real estate		31		22		36		57		66		.15			.12			.19			.31			.35
Equipment lease financing		1		4		1		1		5		.01			.05			.01			.01			.07
Home equity		32		29		33		58		69		.09			.08			.09			.16			.19
Residential real estate
Non government insured		31		29		41		49		52		.20			.20			.27			.32			.34
Government insured		57		79		86		97		94		.37			.53			.57			.64			.59
Credit card		19		19		20		23		20		.45			.46			.49			.53			.48
Other consumer
Non government insured		18		14		15		21		23		.08			.07			.07			.10			.11
Government insured		106		100		86		110		121		.48			.47			.41			.51			.57

Total	$	332	$	349	$	353	$	471	$	542		.17			.18			.19			.25			.30


Accruing Loans Past Due 90 Days or More (a) (b)
	Amount										Percent of Total Outstandings
Dollars in millions	Sept. 30 2013		Jun. 30 2013		Mar. 31 2013		Dec. 31 2012		Sept. 30 2012		Sept. 30 2013			Jun. 30 2013			Mar. 31 2013			Dec. 31 2012			Sept. 30 2012
Commercial	$	33	$	31	$	27	$	42	$	41		.04	%		.04	%		.03	%		.05	%		.05	%
Commercial real estate		3				3		15		36		.01						.02			.08			.19
Equipment lease financing		2						2		1		.03									.03			.01
Residential real estate
Non government insured		35		50		59		46		97		.23			.34			.39			.30			.63
Government insured		1,187		1,326		1,458		1,855		1,896		7.71			8.97			9.73			12.17			11.98
Credit card		31		33		35		36		32		.73			.80			.86			.84			.77
Other consumer
Non government insured		13		12		13		18		18		.06			.06			.06			.08			.08
Government insured		329		310		311		337		335		1.48			1.46			1.47			1.57			1.58

Total	$	1,633	$	1,762	$	1,906	$	2,351	$	2,456		.85			.93			1.02			1.26			1.35

(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 September 30, 2013, our economic interest in BlackRock was 22%.

Period End Employees


	September 30 2013		June 30 2013		March 31 2013		December 31 2012		September 30 2012
Full-time employees
Retail Banking		22,192		22,476		22,985		23,331		23,403
Other full-time employees (a)		27,973		27,975		27,957		27,616		27,512

Total full-time employees		50,165		50,451		50,942		50,947		50,915

Part-time employees
Retail Banking		4,194		4,394		4,496		4,563		4,740
Other part-time employees (a)		575		935		734		775		879

Total part-time employees		4,769		5,329		5,230		5,338		5,619

Total		54,934		55,780		56,172		56,285		56,534

(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											Nine months ended
In millions	September 30 2013		June 30 2013		March 31 2013		December 31 2012			September 30 2012		September 30 2013		September 30 2012
Income (Loss)
Retail Banking (c)	$	165	$	158	$	120	$	121		$	192	$	443	$	475
Corporate & Institutional Banking		542		612		541		649			607		1,695		1,679
Asset Management Group		47		36		43		34			37		126		111
Residential Mortgage Banking (d)		28		20		45		(192	)		36		93		(116	)
Non-Strategic Assets Portfolio		121		60		79		59			40		260		178
Other, including BlackRock (b) (e)		136		237		176		48			13		549		(45	)

Net income	$	1,039	$	1,123	$	1,004	$	719		$	925	$	3,166	$	2,282

Revenue
Retail Banking (c)	$	1,563	$	1,554	$	1,483	$	1,677		$	1,664	$	4,600	$	4,651
Corporate & Institutional Banking		1,356		1,420		1,341		1,576			1,416		4,117		4,121
Asset Management Group		262		254		255		247			243		771		726
Residential Mortgage Banking (d)		254		228		291		58			284		773		468
Non-Strategic Assets Portfolio		181		175		219		218			204		575		625
Other, including BlackRock (b) (e)		304		433		366		293			277		1,103		852

Total revenue	$	3,920	$	4,064	$	3,955	$	4,069		$	4,088	$	11,939	$	11,443

(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 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 third 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 third and second quarters of 2013 and the fourth and third quarters of 2012. For more information, refer to Selected Noninterest Income Information on page 7.

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

(e)

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Retail Banking (Unaudited) (a)


	Three months ended															Nine months ended
Dollars in millions	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
INCOME STATEMENT
Net interest income	$	1,006		$	1,012		$	1,049		$	1,081		$	1,076		$	3,067		$	3,235
Noninterest income
Service charges on deposits		149			141			129			143			146			419			404
Brokerage		57			58			52			48			47			167			141
Consumer services		234			229			216			220			214			679			618
Other		117			114			37			185			181			268			253

Total noninterest income		557			542			434			596			588			1,533			1,416

Total revenue		1,563			1,554			1,483			1,677			1,664			4,600			4,651
Provision for credit losses		152			148			162			280			220			462			520
Noninterest expense		1,151			1,156			1,131			1,206			1,140			3,438			3,380

Pretax earnings		260			250			190			191			304			700			751
Income taxes		95			92			70			70			112			257			276

Earnings	$	165		$	158		$	120		$	121		$	192		$	443		$	475

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	29,477		$	29,212		$	28,913		$	28,920		$	28,881		$	29,203		$	28,136
Indirect auto		7,971			7,314			7,006			6,718			5,654			7,434			5,047
Indirect other		877			939			1,000			1,063			1,133			938			1,212
Education		7,818			7,982			8,220			8,370			8,611			8,005			9,049
Credit cards		4,148			4,061			4,108			4,138			4,108			4,106			4,037
Other		2,152			2,141			2,141			2,145			2,068			2,145			1,987

Total consumer		52,443			51,649			51,388			51,354			50,455			51,831			49,468
Commercial and commercial real estate		11,299			11,345			11,290			11,266			11,360			11,311			11,176
Floor plan		1,931			2,048			2,014			1,915			1,769			1,997			1,745
Residential mortgage		715			767			811			862			918			764			974

Total loans		66,388			65,809			65,503			65,397			64,502			65,903			63,363
Goodwill and other intangible assets		6,105			6,127			6,148			6,174			6,199			6,127			6,105
Other assets		2,722			2,580			2,465			2,565			2,589			2,590			2,580

Total assets	$	75,215		$	74,516		$	74,116		$	74,136		$	73,290		$	74,620		$	72,048

Deposits
Noninterest-bearing demand	$	21,349		$	21,187		$	20,744		$	20,900		$	20,660		$	21,096		$	19,938
Interest-bearing demand		31,748			32,004			31,183			29,526			28,506			31,647			27,496
Money market		48,939			48,645			48,291			47,859			47,557			48,628			46,148

Total transaction deposits		102,036			101,836			100,218			98,285			96,723			101,371			93,582
Savings		10,900			10,997			10,537			10,068			9,954			10,812			9,645
Certificates of deposit		21,050			21,823			22,683			23,531			24,746			21,846			26,448

Total deposits		133,986			134,656			133,438			131,884			131,423			134,029			129,675
Other liabilities		364			343			273			285			255			327			358
Allocated capital		8,838			8,876			9,058			9,051			9,034			8,923			8,607

Total liabilities and equity	$	143,188		$	143,875		$	142,769		$	141,220		$	140,712		$	143,279		$	138,640

PERFORMANCE RATIOS
Return on average allocated capital		7	%		7	%		5	%		5	%		8	%		7	%		7	%
Return on average assets		.87			.85			.66			.65			1.04			.79			.88
Noninterest income to total revenue		36			35			29			36			35			33			30
Efficiency		74			74			76			72			69			75			73

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

Retail Banking (Unaudited) (Continued)


	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions, except as noted	2013			2013			2013			2012			2012			2013			2012
OTHER INFORMATION (a)								.
Credit-related statistics:
Commercial nonperforming assets	$	212		$	222		$	230		$	245		$	266
Consumer nonperforming assets		1,074			1,068			1,050			902			799

Total nonperforming assets	$	1,286		$	1,290		$	1,280		$	1,147		$	1,065

Purchased impaired loans (b)	$	718		$	750		$	788		$	819		$	852

Commercial lending net charge-offs	$	17		$	22		$	37		$	34		$	19		$	76		$	85
Credit card lending net charge-offs		35			39			45			35			40			119			139
Consumer lending (excluding credit card) net charge-offs		91			91			168			148			160			350			373

Total net charge-offs	$	143		$	152		$	250		$	217		$	219		$	545		$	597

Commercial lending annualized net charge-off ratio		.51	%		.66	%		1.13	%		1.03	%		.58	%		.76	%		.88	%
Credit card lending annualized net charge-off ratio		3.35	%		3.85	%		4.44	%		3.36	%		3.87	%		3.87	%		4.60	%
Consumer lending (excluding credit card) annualized net charge-off ratio (g)		.74	%		.75	%		1.42	%		1.22	%		1.35	%		.97	%		1.07	%

Total annualized net charge-off ratio (g)		.85	%		.93	%		1.55	%		1.32	%		1.35	%		1.11	%		1.26	%

Home equity portfolio credit statistics: (c)
% of first lien positions at origination (d)		52	%		50	%		48	%		42	%		41	%
Weighted-average loan-to-value ratios (LTVs) (d) (e)		83	%		85	%		85	%		81	%		80	%
Weighted-average updated FICO scores (f)		745			745			743			742			742
Annualized net charge-off ratio (g)		.75	%		.82	%		1.97	%		1.35	%		1.58	%		1.17	%		1.21	%
Delinquency data: (h)
Loans 30 - 59 days past due		.22	%		.20	%		.23	%		.42	%		.25	%
Loans 60 - 89 days past due		.09	%		.08	%		.10	%		.22	%		.15	%

Total accruing loans past due		.32	%		.28	%		.33	%		.64	%		.40	%

Nonperforming loans		3.13	%		3.12	%		3.01	%		2.64	%		2.28	%

Other statistics:
ATMs		7,441			7,335			7,303			7,282			7,261
Branches (i)		2,724			2,780			2,856			2,881			2,887
Brokerage account assets (billions)	$	40		$	39		$	39		$	38		$	38

Customer-related statistics: (in thousands)
Retail Banking checking relationships		6,658			6,589			6,534			6,475			6,451
Retail online banking active customers		4,534			4,271			4,234			4,227			4,117
Retail online bill payment active customers		1,285			1,270			1,260			1,236			1,219

(a)	Presented as of period end, except for net charge-offs and annualized net charge-off ratios, which are for the three and nine 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 September 30, 2013, 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 nine months ended September 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															Nine months ended
Dollars in millions	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
INCOME STATEMENT
Net interest income	$	945		$	943		$	956		$	1,057		$	1,019		$	2,844		$	3,042
Noninterest income
Corporate service fees		277			297			246			324			258			820			706
Other		134			180			139			195			139			453			373

Noninterest income		411			477			385			519			397			1,273			1,079

Total revenue		1,356			1,420			1,341			1,576			1,416			4,117			4,121
Provision for credit losses (benefit)		30			(40	)		14			9			(61	)		4			(9	)
Noninterest expense		495			499			480			549			520			1,474			1,479

Pretax earnings		831			961			847			1,018			957			2,639			2,651
Income taxes		289			349			306			369			350			944			972

Earnings	$	542		$	612		$	541		$	649		$	607		$	1,695		$	1,679

AVERAGE BALANCE SHEET
Loans
Commercial	$	72,753		$	72,202		$	69,817		$	67,444		$	65,909		$	71,601		$	62,150
Commercial real estate		17,830			17,002			16,876			16,517			16,226			17,240			15,516
Equipment lease financing		6,610			6,655			6,552			6,272			6,095			6,606			5,904

Total commercial lending		97,193			95,859			93,245			90,233			88,230			95,447			83,570
Consumer		801			876			1,083			1,092			1,141			919			731

Total loans		97,994			96,735			94,328			91,325			89,371			96,366			84,301
Goodwill and other intangible assets		3,848			3,775			3,752			3,724			3,707			3,792			3,633
Loans held for sale		975			968			1,236			1,190			1,263			1,058			1,233
Other assets		9,750			10,729			12,355			12,842			12,582			10,936			11,740

Total assets	$	112,567		$	112,207		$	111,671		$	109,081		$	106,923		$	112,152		$	100,907

Deposits
Noninterest-bearing demand	$	42,053		$	39,910		$	40,572		$	40,607		$	37,685		$	40,850		$	37,575
Money market		18,099			16,932			17,023			16,500			16,237			17,355			15,284
Other		6,992			6,914			6,979			6,842			6,277			6,962			5,862

Total deposits		67,144			63,756			64,574			63,949			60,199			65,167			58,721
Other liabilities		13,932			17,059			18,779			19,107			19,201			16,572			17,586
Allocated capital		9,489			9,495			9,588			9,787			9,937			9,524			9,100

Total liabilities and equity	$	90,565		$	90,310		$	92,941		$	92,843		$	89,337		$	91,263		$	85,407

PERFORMANCE RATIOS
Return on average allocated capital		23	%		26	%		23	%		26	%		24	%		24	%		25	%
Return on average assets		1.91			2.19			1.96			2.37			2.26			2.02			2.22
Noninterest income to total revenue		30			34			29			33			28			31			26
Efficiency		37			35			36			35			37			36			36

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19

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


	Three months ended															Nine months ended
Dollars in millions, except as noted	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	294		$	290		$	282		$	265		$	264		$	282		$	267
Acquisitions/additions		18			18			21			35			12			57			29
Repayments/transfers		(14	)		(14	)		(13	)		(18	)		(11	)		(41	)		(31	)

End of period	$	298		$	294		$	290		$	282		$	265		$	298		$	265

OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management (c)	$	309		$	313		$	329		$	337		$	346		$	951		$	1,043
Capital Markets (d)	$	175		$	196		$	131		$	228		$	175		$	502		$	482
Commercial mortgage loans held for sale (e)	$	27		$	31		$	38		$	44		$	13		$	96		$	60
Commercial mortgage loan servicing income, net of amortization (f)		60			53			53			57			55			166			138
Commercial mortgage servicing rights (impairment)/recovery, net of economic hedge		18			44			11			16			16			73			15

Total commercial mortgage banking activities	$	105		$	128		$	102		$	117		$	84		$	335		$	213
Average Loans (by C&IB business)
Corporate Banking	$	50,844		$	50,678		$	49,241		$	47,522		$	47,091		$	50,260		$	44,079
Real Estate		22,622			21,361			20,790			19,861			18,749			21,597			17,933
Business Credit		11,726			11,611			11,181			10,893			10,406			11,508			9,811
Equipment Finance		10,035			10,034			9,811			9,438			9,214			9,961			8,899
Other		2,767			3,051			3,305			3,611			3,911			3,040			3,579

Total average loans		97,994			96,735			94,328			91,325			89,371			96,366			84,301
Total loans (g)	$	99,337		$	97,708		$	94,843		$	93,721		$	90,099			99,337			90,099
Net carrying amount of commercial mortgage servicing rights (g)	$	541		$	525		$	452		$	420		$	402
Credit-related statistics:
Nonperforming assets (g)	$	949		$	999		$	1,082		$	1,181		$	1,500
Purchased impaired loans (g) (h)	$	600		$	708		$	768		$	875		$	990
Net charge-offs (recoveries)	$	56		$	(19	)	$	58		$	34		$	35		$	95		$	108

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

(b)	Represents consolidated PNC amounts. Our third 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															Nine months ended
Dollars in millions, except as noted	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
INCOME STATEMENT
Net interest income	$	74		$	70		$	73		$	74		$	73		$	217		$	223
Noninterest income		188			184			182			173			170			554			503

Total revenue		262			254			255			247			243			771			726
Provision for credit losses (benefit)		(4	)		1			5			(2	)		4			2			13
Noninterest expense		192			195			183			195			180			570			537

Pretax earnings		74			58			67			54			59			199			176
Income taxes		27			22			24			20			22			73			65

Earnings	$	47		$	36		$	43		$	34		$	37		$	126		$	111

AVERAGE BALANCE SHEET
Loans
Consumer	$	5,107		$	4,947		$	4,793		$	4,671		$	4,486		$	4,950		$	4,330
Commercial and commercial real estate		1,049			1,042			1,037			1,021			1,060			1,043			1,095
Residential mortgage		784			772			772			706			687			776			691

Total loans		6,940			6,761			6,602			6,398			6,233			6,769			6,116
Goodwill and other intangible assets		289			298			306			315			324			297			334
Other assets		216			230			223			226			214			223			216

Total assets	$	7,445		$	7,289		$	7,131		$	6,939		$	6,771		$	7,289		$	6,666

Deposits
Noninterest-bearing demand	$	1,220		$	1,249		$	1,331		$	1,573		$	1,336		$	1,266		$	1,424
Interest-bearing demand		3,329			3,475			3,616			3,009			2,662			3,472			2,658
Money market		3,693			3,722			3,841			3,562			3,466			3,752			3,550

Total transaction deposits		8,242			8,446			8,788			8,144			7,464			8,490			7,632
CDs/IRAs/savings deposits		431			441			454			461			465			442			501

Total deposits		8,673			8,887			9,242			8,605			7,929			8,932			8,133
Other liabilities		62			58			60			65			68			60			69
Allocated capital		464			457			474			481			464			465			425

Total liabilities and equity	$	9,199		$	9,402		$	9,776		$	9,151		$	8,461		$	9,457		$	8,627

PERFORMANCE RATIOS
Return on average allocated capital		40	%		32	%		37	%		28	%		32	%		36	%		35	%
Return on average assets		2.50			1.98			2.45			1.95			2.17			2.31			2.22
Noninterest income to total revenue		72			72			71			70			70			72			69
Efficiency		73			77			72			79			74			74			74

OTHER INFORMATION
Total nonperforming assets (b)	$	68		$	69		$	65		$	69		$	61
Purchased impaired loans (b) (c)	$	100		$	102		$	105		$	109		$	118
Total net charge-offs (recoveries)	$	(7	)	$	2		$	3		$	2		$	(1	)	$	(2	)	$	4

ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	106		$	112		$	112		$	107		$	106
Institutional		131			121			124			117			116

Total	$	237		$	233		$	236		$	224		$	222

Asset Type
Equity	$	132		$	130		$	130		$	120		$	120
Fixed income		70			70			70			69			68
Liquidity/Other		35			33			36			35			34

Total	$	237		$	233		$	236		$	224		$	222

Discretionary assets under management
Personal	$	80		$	78		$	77		$	73		$	73
Institutional		42			39			41			39			39

Total	$	122		$	117		$	118		$	112		$	112

Asset Type
Equity	$	65		$	62		$	62		$	56		$	57
Fixed income		40			39			39			39			39
Liquidity/Other		17			16			17			17			16

Total	$	122		$	117		$	118		$	112		$	112

Nondiscretionary assets under administration
Personal	$	26		$	34		$	35		$	34		$	33
Institutional		89			82			83			78			77

Total	$	115		$	116		$	118		$	112		$	110

Asset Type
Equity	$	67		$	68		$	68		$	64		$	63
Fixed income		30			31			31			30			29
Liquidity/Other		18			17			19			18			18

Total	$	115		$	116		$	118		$	112		$	110

(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															Nine months ended
Dollars in millions, except as noted	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
INCOME STATEMENT
Net interest income	$	46		$	51		$	48		$	53		$	52		$	145		$	156
Noninterest income
Loan servicing revenue
Servicing fees		40			37			41			48			49			118			157
Net MSR hedging gains		57			26			37			2			7			120			117
Loan sales revenue
Benefit / (provision) for residential mortgage repurchase obligations		6			(73	)		(4	)		(254	)		(37	)		(71	)		(507	)
Loan sales revenue		108			190			172			213			216			470			534
Other		(3	)		(3	)		(3	)		(4	)		(3	)		(9	)		11

Total noninterest income		208			177			243			5			232			628			312

Total revenue		254			228			291			58			284			773			468
Provision for credit losses (benefit)		—			4			20			2			2			24			(7	)
Noninterest expense		210			192			200			333			226			602			659

Pretax earnings (loss)		44			32			71			(277	)		56			147			(184	)
Income taxes (benefit)		16			12			26			(85	)		20			54			(68	)

Earnings (loss)	$	28		$	20		$	45		$	(192	)	$	36		$	93		$	(116	)

AVERAGE BALANCE SHEET
Portfolio loans	$	2,334		$	2,403		$	2,553		$	2,559		$	2,648		$	2,429		$	2,773
Loans held for sale		2,104			2,106			2,038			1,832			1,694			2,083			1,733
Mortgage servicing rights (MSR)		1,068			849			764			620			599			895			636
Other assets		3,811			5,049			5,448			6,120			6,560			4,763			6,521

Total assets	$	9,317		$	10,407		$	10,803		$	11,131		$	11,501		$	10,170		$	11,663

Deposits	$	2,936		$	3,260		$	3,106		$	3,286		$	3,492		$	3,100		$	2,317
Borrowings and other liabilities		2,316			3,216			3,487			3,729			4,198			3,002			4,206
Allocated capital		1,470			1,492			1,752			1,830			1,488			1,571			1,160

Total liabilities and equity	$	6,722		$	7,968		$	8,345		$	8,845		$	9,178		$	7,673		$	7,683

PERFORMANCE RATIOS
Return on average allocated capital		8	%		5	%		10	%		(42	)%		10	%		8	%		(13	)%
Return on average assets		1.19			.77			1.69			(6.86	)		1.25			1.22			(1.33	)
Noninterest income to total revenue		82			78			84			9			82			81			67
Efficiency		83			84			69			574			80			78			141

RESIDENTIAL MORTGAGE SERVICING PORTFOLIO - THIRD-PARTY (in billions)
Beginning of period	$	116		$	120		$	119		$	119		$	116		$	119		$	118
Acquisitions		2						6			6			8			8			15
Additions		4			4			4			4			4			12			10
Repayments/transfers		(7	)		(8	)		(9	)		(10	)		(9	)		(24	)		(24	)

End of period	$	115		$	116		$	120		$	119		$	119		$	115		$	119

Servicing portfolio - third-party statistics: (b)
Fixed rate		92	%		92	%		92	%		92	%		91	%
Adjustable rate/balloon		8	%		8	%		8	%		8	%		9	%
Weighted-average interest rate		4.63	%		4.72	%		4.80	%		4.94	%		5.06	%
MSR capitalized value (in billions)	$	1.1		$	1.0		$	.8		$	.7		$	.6
MSR capitalization value (in basis points)		90			84			65			54			50
Weighted-average servicing fee (in basis points)		28			28			28			28			29

RESIDENTIAL MORTGAGE REPURCHASE RESERVE
Beginning of period	$	523		$	522		$	614		$	421		$	462		$	614		$	83
(Benefit) / Provision		(6	)		73			4			254			37			71			507
RBC Bank (USA) acquisition																				26
Losses - loan repurchases and settlements		(46	)		(72	)		(96	)		(61	)		(78	)		(214	)		(195	)

End of period	$	471		$	523		$	522		$	614		$	421		$	471		$	421

OTHER INFORMATION
Loan origination volume (in billions)	$	3.7		$	4.7		$	4.2		$	4.4		$	3.8		$	12.6		$	10.8
Loan sale margin percentage		2.92	%		4.04	%		4.07	%		4.87	%		5.68	%		3.72	%		4.94	%
Percentage of originations represented by:
Agency and government programs		99	%		100	%		100	%		100	%		100	%		100	%		100	%
Purchase volume (c)		38	%		28	%		19	%		20	%		26	%		28	%		24	%
Refinance volume		62	%		72	%		81	%		80	%		74	%		72	%		76	%
Total nonperforming assets (b)	$	205		$	220		$	236		$	134		$	82
Purchased impaired loans (b) (d)	$	(2	)	$	8		$	24		$	38		$	69

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

(b)	As of period end.

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 22

Non-Strategic Assets Portfolio (Unaudited) (a)


	Three months ended															Nine months ended
Dollars in millions	September 30 2013			June 30 2013			March 31 2013			December 31 2012			September 30 2012			September 30 2013			September 30 2012
INCOME STATEMENT
Net interest income	$	161		$	164		$	203		$	197		$	195		$	528		$	633
Noninterest income		20			11			16			21			9			47			(8	)

Total revenue		181			175			219			218			204			575			625
Provision for credit losses (benefit)		(43	)		39			42			52			61			38			129
Noninterest expense		33			41			52			73			79			126			214

Pretax earnings		191			95			125			93			64			411			282
Income taxes		70			35			46			34			24			151			104

Earnings	$	121		$	60		$	79		$	59		$	40		$	260		$	178

AVERAGE BALANCE SHEET
Commercial Lending:
Commercial/Commercial real estate	$	319		$	437		$	537		$	720		$	846		$	430		$	952
Lease financing		686			694			688			684			678			689			674

Total commercial lending		1,005			1,131			1,225			1,404			1,524			1,119			1,626

Consumer Lending:
Home equity		3,935			4,122			4,158			4,325			4,498			4,071			4,671
Residential real estate		5,496			5,709			5,938			6,130			6,328			5,713			6,303

Total consumer lending		9,431			9,831			10,096			10,455			10,826			9,784			10,974

Total portfolio loans		10,436			10,962			11,321			11,859			12,350			10,903			12,600
Other assets (b)		(735	)		(672	)		(586	)		(481	)		(333	)		(665	)		(324	)

Total assets	$	9,701		$	10,290		$	10,735		$	11,378		$	12,017		$	10,238		$	12,276

Deposits and other liabilities	$	261		$	275		$	168		$	186		$	189		$	235		$	182
Allocated capital		1,076			1,113			1,094			1,188			1,278			1,094			1,255

Total liabilities and equity	$	1,337		$	1,388		$	1,262		$	1,374		$	1,467		$	1,329		$	1,437

PERFORMANCE RATIOS
Return on average allocated capital		45	%		22	%		29	%		20	%		12	%		32	%		19	%
Return on average assets		4.95			2.34			2.98			2.06			1.32			3.40			1.94
Noninterest income to total revenue		11			6			7			10			4			8			(1	)
Efficiency		18			23			24			33			39			22			34

OTHER INFORMATION
Nonperforming assets (c)	$	863		$	935		$	999		$	999		$	1,056
Purchased impaired loans (c) (d)	$	4,966		$	5,193		$	5,372		$	5,547		$	5,702
Net charge-offs	$	23		$	53		$	87		$	60		$	65		$	163		$	239
Annualized net charge-off ratio		.87	%		1.94	%		3.12	%		2.01	%		2.09	%		2.00	%		2.53	%
LOANS (c)
Commercial Lending:
Commercial/Commercial real estate	$	270		$	388		$	493		$	665		$	795
Lease financing		675			696			690			686			680

Total commercial lending		945			1,084			1,183			1,351			1,475

Consumer Lending:
Home equity		3,844			4,029			4,209			4,237			4,408
Residential real estate		5,434			5,659			5,880			6,093			6,272

Total consumer lending		9,278			9,688			10,089			10,330			10,680

Total loans	$	10,223		$	10,772		$	11,272		$	11,681		$	12,155

(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).

Allocated capital - Capital which is allocated to our business segments using our risk-based economic capital model, including consideration of the goodwill at those business segments as well as the diversification of risk among the business segments.

Annualized - Adjusted to reflect a full year of activity.

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

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

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

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

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

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

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

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

Basis point - One hundredth of a percentage point.

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

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

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 24

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

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

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

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

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

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.

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 25

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

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

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

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

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

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

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

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

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

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

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

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

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 26

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.

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 allocated capital - Annualized net income divided by average allocated capital. This measure is used at the business segment level.

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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 27

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

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

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

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

Attached files

Stock widget

Investing forum