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.	d903223d8k.htm
EX-99.2 - EX-99.2 - PNC FINANCIAL SERVICES GROUP, INC.	d903223dex992.htm

Exhibit 99.1

LOGO

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FIRST QUARTER 2015

(UNAUDITED)


	Page
Consolidated Results:

Income Statement		1
Balance Sheet		2
Per Share Related Information		3
Capital Ratios		3
Average Balance Sheet		4-5
Details of Net Interest Margin		6
Total and Core Net Interest Income and Net Interest Margin		7
Loans, Loans Held for Sale and Commitments to Extend Credit		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 April 15, 2015. 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, Virginia, Alabama, Missouri, Georgia, Wisconsin and South Carolina. PNC also provides certain products and services internationally.

The PNC Financial Services Group, Inc.

Cross-Reference Index to First Quarter 2015 Financial Supplement (Unaudited)

Financial Supplement Table Reference


Table	Description	Page
1	Consolidated Income Statement		1
2	Consolidated Balance Sheet		2
3	Per Share Related Information		3
4	Capital Ratios		3
5	Average Consolidated Balance Sheet		4-5
6	Supplemental Average Balance Sheet Information		5
7	Details of Net Interest Margin		6
8	Total and Core Net Interest Income		7
9	Details of Net Interest Margin		7
10	Details of Core Net Interest Margin		7
11	Details of Loans		8
12	Details of Loans Held for Sale		8
13	Commitments to Extend Credit		8
14	Change in Allowance for Loan and Lease Losses		9
15	Change in Allowance for Unfunded Loan Commitments and Letters of Credit		9
16	Accretion - Purchased Impaired Loans		10
17	Purchased Impaired Loans - Accretable Yield		10
18	Valuation of Purchased Impaired Loans		10
19	Nonperforming Assets By Type		11
20	Change in Nonperforming Assets		12
21	Largest Individual Nonperforming Assets at March 31, 2015		12
22	Summary of Troubled Debt Restructurings		12
23	Accruing Loans Past Due 30 To 59 Days		13
24	Accruing Loans Past Due 60 To 89 Days		13
25	Accruing Loans Past Due 90 Days or More		13
26	Period End Employees		14
27	Summary of Business Segment Income and Revenue		15
28	Retail Banking		16-17
29	Corporate & Institutional Banking		18-19
30	Asset Management Group		20
31	Residential Mortgage Banking		21
32	Non-Strategic Assets Portfolio		22


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Table 1: Consolidated Income Statement (Unaudited)


	Three months ended
In millions, except per share data	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
Interest Income
Loans	$	1,802		$	1,835		$	1,848		$	1,845		$	1,899
Investment securities		406			398			387			412			427
Other		111			104			93			99			84

Total interest income		2,319			2,337			2,328			2,356			2,410

Interest Expense
Deposits		92			86			81			80			78
Borrowed funds		155			154			143			147			137

Total interest expense		247			240			224			227			215

Net interest income		2,072			2,097			2,104			2,129			2,195

Noninterest Income
Asset management		376			376			411			362			364
Consumer services		311			321			320			323			290
Corporate services		344			397			374			343			301
Residential mortgage		164			135			140			182			161
Service charges on deposits		153			180			179			156			147
Net gains (losses) on sales of securities (a)		42			—			—			(6	)		10
Net other-than-temporary impairments		(1	)		(7	)		(1	)		(1	)		(2	)
Other		270			448			314			322			311

Total noninterest income		1,659			1,850			1,737			1,681			1,582

Total revenue		3,731			3,947			3,841			3,810			3,777
Provision For Credit Losses		54			52			55			72			94
Noninterest Expense
Personnel		1,157			1,170			1,189			1,172			1,080
Occupancy		216			216			200			199			218
Equipment		222			234			220			204			201
Marketing		62			67			66			68			52
Other		692			852			682			685			713

Total noninterest expense		2,349			2,539			2,357			2,328			2,264

Income before income taxes and noncontrolling interests		1,328			1,356			1,429			1,410			1,419
Income taxes		324			299			391			358			359

Net income		1,004			1,057			1,038			1,052			1,060

Less: Net income (loss) attributable to noncontrolling interests		1			21			1			3			(2	)
Preferred stock dividends and discount accretion and redemptions		70			48			71			48			70

Net income attributable to common shareholders	$	933		$	988		$	966		$	1,001		$	992

Earnings Per Common Share
Basic	$	1.79		$	1.88		$	1.82		$	1.88		$	1.86
Diluted	$	1.75		$	1.84		$	1.79		$	1.85		$	1.82

Average Common Shares Outstanding
Basic		521			524			529			532			532
Diluted		529			532			537			539			539

Efficiency		63	%		64	%		61	%		61	%		60	%
Noninterest income to total revenue		44	%		47	%		45	%		44	%		42	%
Effective tax rate (b)		24.4	%		22.1	%		27.4	%		25.4	%		25.3	%

(a)	Net gains (losses) on sales of securities was less than $.5 million for both the three months ended December 31, 2014 and September 30, 2014, respectively.

(b)	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

Table 2: Consolidated Balance Sheet (Unaudited)


In millions, except par value	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
Assets
Cash and due from banks (a)	$	4,151		$	4,360		$	4,164		$	4,892		$	4,723
Federal funds sold and resale agreements (b)		1,893			1,852			1,761			1,526			1,143
Trading securities		2,151			2,353			2,650			2,228			2,381
Interest-earning deposits with banks (a) (c)		31,198			31,779			26,247			16,876			14,877
Loans held for sale (b)		2,423			2,262			2,143			2,228			2,102
Investment securities		60,768			55,823			55,039			56,602			58,644
Loans (a) (b)		204,722			204,817			200,872			200,984			198,242
Allowance for loan and lease losses (a)		(3,306	)		(3,331	)		(3,406	)		(3,453	)		(3,530	)

Net loans		201,416			201,486			197,466			197,531			194,712
Goodwill		9,103			9,103			9,074			9,074			9,074
Mortgage servicing rights		1,333			1,351			1,510			1,482			1,568
Other intangible assets		463			493			484			515			547
Equity investments (a) (d)		10,523			10,728			10,763			10,583			10,337
Other (a) (b)		25,538			23,482			23,123			23,527			23,315

Total assets	$	350,960		$	345,072		$	334,424		$	327,064		$	323,423

Liabilities
Deposits
Noninterest-bearing	$	74,944		$	73,479		$	72,963		$	71,001		$	70,063
Interest-bearing		161,559			158,755			153,341			151,553			152,319

Total deposits		236,503			232,234			226,304			222,554			222,382
Borrowed funds
Federal funds purchased and repurchase agreements		2,202			3,510			3,499			3,132			3,233
Federal Home Loan Bank borrowings		21,224			20,005			16,471			15,023			13,911
Bank notes and senior debt		16,205			15,750			15,327			14,102			13,861
Subordinated debt		9,228			9,151			9,046			9,099			8,289
Commercial paper		4,399			4,995			4,809			4,999			4,923
Other (a) (b)		3,571			3,357			3,175			2,711			2,589

Total borrowed funds		56,829			56,768			52,327			49,066			46,806
Allowance for unfunded loan commitments and letters of credit		234			259			251			232			228
Accrued expenses (a)		5,039			5,187			5,090			4,753			4,808
Other (a)		5,917			4,550			4,457			4,666			4,281

Total liabilities		304,522			298,998			288,429			281,271			278,505

Equity
Preferred stock (e)
Common stock - $5 par value
Authorized 800 shares, issued 541, 541, 540, 540, and 540 shares		2,706			2,705			2,703			2,703			2,700
Capital surplus - preferred stock		3,948			3,946			3,945			3,944			3,943
Capital surplus - common stock and other		12,561			12,627			12,573			12,506			12,394
Retained earnings		26,882			26,200			25,464			24,755			24,010
Accumulated other comprehensive income (loss)		703			503			727			881			656
Common stock held in treasury at cost: 21, 18, 12, 8 and 6 shares		(1,775	)		(1,430	)		(931	)		(584	)		(382	)

Total shareholders’ equity		45,025			44,551			44,481			44,205			43,321
Noncontrolling interests		1,413			1,523			1,514			1,588			1,597

Total equity		46,438			46,074			45,995			45,793			44,918

Total liabilities and equity	$	350,960		$	345,072		$	334,424		$	327,064		$	323,423

(a)	Amounts include consolidated variable interest entities. Our 2014 Form 10-K included, and our first quarter 2015 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 2014 Form 10-K included, and our first quarter 2015 Form 10-Q will include, additional information regarding these items.

(c)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $30.8 billion, $31.4 billion, $25.9 billion, $16.5 billion and $14.5 billion as of March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, respectively.

(d)	Amounts include our equity interest in BlackRock.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3

Table 3: Per Share Related Information (Unaudited)


	Three months ended
In millions, except per share data	March 31 2015		December 31 2014		September 30 2014		June 30 2014		March 31 2014
Basic
Net income	$	1,004	$	1,057	$	1,038	$	1,052	$	1,060
Less:
Net income (loss) attributable to noncontrolling interests		1		21		1		3		(2	)
Preferred stock dividends and discount accretion and redemptions		70		48		71		48		70

Net income attributable to common shareholders		933		988		966		1,001		992
Less:
Dividends and undistributed earnings allocated to nonvested restricted shares		2		2		3		3		3

Net income attributable to basic common shares	$	931	$	986	$	963	$	998	$	989
Basic weighted-average common shares outstanding		521		524		529		532		532
Basic earnings per common share	$	1.79	$	1.88	$	1.82	$	1.88	$	1.86

Diluted
Net income attributable to basic common shares	$	931	$	986	$	963	$	998	$	989
Less: Impact of BlackRock earnings per share dilution		5		5		4		3		6

Net income attributable to diluted common shares	$	926	$	981	$	959	$	995	$	983
Basic weighted-average common shares outstanding		521		524		529		532		532
Dilutive potential common shares		8		8		8		7		7

Diluted weighted-average common shares outstanding		529		532		537		539		539
Diluted earnings per common share	$	1.75	$	1.84	$	1.79	$	1.85	$	1.82

Table 4: Capital Ratios (Unaudited)


	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
Transitional Basel III (a) (b)
Common equity Tier 1		10.4	%		10.9	%		11.1	%		11.0	%		10.8	%
Tier 1 risk-based		12.0			12.6			12.8			12.7			12.6
Total capital risk-based		14.9			15.8			16.1			16.0			15.8
Leverage		10.5			10.8			11.1			11.2			11.1
Common shareholders’ equity to assets		11.7	%		11.8	%		12.1	%		12.3	%		12.2	%

(a)

The ratios as of March 31, 2015 are estimated. See Capital Ratios discussion in the Banking Regulation and Supervision section of Item 1 Business and in the Consolidated Balance Sheet Review section in Item 7 of our 2014 Form 10-K. Our first quarter 2015 Form 10-Q will include additional discussion on these capital ratios.

(b)	Calculated using the regulatory capital methodology applicable to PNC during each period presented.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4

Table 5: Average Consolidated Balance Sheet (Unaudited) (a)


	Three months ended
In millions	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	19,290		$	17,745		$	18,134		$	19,207		$	20,721
Non-agency		4,657			4,832			5,021			5,204			5,375
Commercial mortgage-backed		6,260			5,799			5,147			5,295			5,576
Asset-backed		5,140			5,089			5,207			5,400			5,593
U.S. Treasury and government agencies		5,142			5,140			5,142			4,883			4,169
State and municipal		1,969			1,935			1,913			2,104			2,652
Other debt		1,777			1,780			1,763			2,028			2,505
Corporate stocks and other		457			433			404			362			409

Total securities available for sale		44,692			42,753			42,731			44,483			47,000
Securities held to maturity
Residential mortgage-backed		7,035			5,832			5,778			5,977			5,995
Commercial mortgage-backed		2,097			2,257			2,409			2,560			2,748
Asset-backed		755			767			874			990			1,004
U.S. Treasury and government agencies		249			247			245			242			240
State and municipal		2,018			2,048			2,058			1,732			1,055
Other		320			324			325			331			337

Total securities held to maturity		12,474			11,475			11,689			11,832			11,379

Total investment securities		57,166			54,228			54,420			56,315			58,379
Loans
Commercial		97,866			95,646			92,547			91,866			89,517
Commercial real estate		23,924			23,176			22,961			22,775			21,652
Equipment lease financing		7,539			7,621			7,610			7,564			7,470
Consumer		61,476			62,213			62,351			62,472			63,093
Residential real estate		14,350			14,223			14,359			14,556			14,849

Total loans		205,155			202,879			199,828			199,233			196,581
Interest-earning deposits with banks		30,405			27,701			22,108			14,650			12,157
Loans held for sale		2,246			2,205			2,272			2,060			1,949
Federal funds sold and resale agreements		1,655			1,771			1,409			1,184			1,416
Other		5,046			5,121			4,914			4,927			5,296

Total interest-earning assets		301,673			293,905			284,951			278,369			275,778
Noninterest-earning assets:
Allowance for loan and lease losses		(3,317	)		(3,383	)		(3,445	)		(3,512	)		(3,591	)
Cash and due from banks		4,067			4,176			3,934			3,776			3,890
Other		45,634			44,948			44,005			43,887			43,485

Total assets	$	348,057		$	339,646		$	329,445		$	322,520		$	319,562

(a)	Calculated using average daily balances.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5

Table 5: Average Consolidated Balance Sheet (Unaudited) (Continued) (a)


	Three months ended
In millions	March 31 2015		December 31 2014		September 30 2014		June 30 2014		March 31 2014
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	79,994	$	77,696	$	76,014	$	74,261	$	74,034
Demand		46,131		44,389		43,112		43,316		42,635
Savings		13,053		12,410		12,152		11,976		11,408
Retail certificates of deposit		18,541		18,700		19,317		20,012		20,538
Time deposits in foreign offices and other time		2,192		2,754		2,235		2,168		2,069

Total interest-bearing deposits		159,911		155,949		152,830		151,733		150,684
Borrowed funds
Federal funds purchased and repurchase agreements		3,116		3,339		3,319		3,343		4,250
Federal Home Loan Bank borrowings		20,774		16,786		15,328		14,193		13,100
Bank notes and senior debt		15,351		15,395		14,221		13,490		13,327
Subordinated debt		8,851		8,812		8,804		8,570		8,040
Commercial paper		4,986		4,735		4,863		4,917		4,931
Other		3,274		3,303		2,801		2,591		2,740

Total borrowed funds		56,352		52,370		49,336		47,104		46,388

Total interest-bearing liabilities		216,263		208,319		202,166		198,837		197,072
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		73,178		73,468		70,993		68,219		67,679
Allowance for unfunded loan commitments and letters of credit		260		251		232		228		241
Accrued expenses and other liabilities		12,326		11,639		10,307		10,035		10,123
Equity		46,030		45,969		45,747		45,201		44,447

Total liabilities and equity	$	348,057	$	339,646	$	329,445	$	322,520	$	319,562


(a) Calculated using average daily balances.

Table 6: Supplemental Average Balance Sheet Information (Unaudited)
Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	159,911	$	155,949	$	152,830	$	151,733	$	150,684
Noninterest-bearing deposits		73,178		73,468		70,993		68,219		67,679

Total deposits	$	233,089	$	229,417	$	223,823	$	219,952	$	218,363
Transaction deposits	$	199,303	$	195,553	$	190,119	$	185,796	$	184,348
Common shareholders’ equity	$	40,603	$	40,522	$	40,238	$	39,659	$	38,838


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Table 7: Details of Net Interest Margin (Unaudited) (a)


	Three months ended
	March 31			December 31			September 30			June 30			March 31
	2015			2014			2014			2014			2014
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency		2.67	%		2.72	%		2.64	%		2.62	%		2.64	%
Non-agency		4.51			4.33			4.64			5.19			4.91
Commercial mortgage-backed		3.19			3.37			3.61			3.59			3.49
Asset-backed		2.08			2.15			2.01			1.96			1.79
U.S. Treasury and government agencies		1.27			1.21			1.01			1.20			1.30
State and municipal		4.45			4.58			3.98			4.27			4.78
Other debt		2.53			3.25			2.41			2.35			2.39
Corporate stocks and other		.10			.11			.10			.11			.10
Total securities available for sale		2.75			2.82			2.75			2.84			2.86
Securities held to maturity
Residential mortgage-backed		3.26			3.60			3.35			3.55			3.55
Commercial mortgage-backed		4.16			4.09			3.99			3.76			4.09
Asset-backed		1.52			1.50			1.75			1.54			1.51
U.S. Treasury and government agencies		3.77			3.82			3.81			3.80			3.77
State and municipal		5.52			5.50			5.50			5.47			5.61
Other		2.89			3.02			2.84			2.87			3.00
Total securities held to maturity		3.67			3.88			3.73			3.69			3.68
Total investment securities		2.95			3.05			2.96			3.02			3.02
Loans
Commercial		2.98			3.04			3.17			3.24			3.50
Commercial real estate		3.80			3.88			3.90			4.04			4.20
Equipment lease financing		3.47			3.97			3.48			3.61			3.64
Consumer		4.21			4.11			4.16			4.16			4.26
Residential real estate		4.88			4.90			5.03			4.86			5.09
Total loans		3.59			3.63			3.71			3.75			3.95
Interest-earning deposits with banks		.25			.29			.23			.27			.23
Loans held for sale		4.20			4.67			4.48			4.79			4.71
Federal funds sold and resale agreements		.22			.28			.38			.49			.32
Other		5.43			4.56			4.24			5.26			4.02
Total yield on interest-earning assets		3.15			3.21			3.30			3.44			3.58
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market		.24			.20			.18			.18			.17
Demand		.06			.06			.05			.05			.05
Savings		.15			.14			.12			.10			.08
Retail certificates of deposit		.71			.72			.73			.74			.75
Time deposits in foreign offices and other time		.19			.20			.18			.17			.18
Total interest-bearing deposits		.23			.22			.21			.21			.21
Borrowed funds
Federal funds purchased and repurchase agreements		.12			.11			.08			.07			.11
Federal Home Loan Bank borrowings		.45			.46			.48			.50			.50
Bank notes and senior debt		1.36			1.35			1.33			1.51			1.49
Subordinated debt		2.64			2.64			2.40			2.65			2.54
Commercial paper		.34			.31			.30			.29			.28
Other		1.99			2.25			2.62			2.60			2.20
Total borrowed funds		1.10			1.17			1.14			1.24			1.18
Total rate on interest-bearing liabilities		.46			.45			.44			.45			.44

Interest rate spread		2.69			2.76			2.86			2.99			3.14
Impact of noninterest-bearing sources (b)		.13			.13			.12			.13			.12

Net interest margin		2.82	%		2.89	%		2.98	%		3.12	%		3.26	%

(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 March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, were $49 million, $49 million, $47 million, $47 million and $46 million, respectively.

(b)	Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

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

Table 8: Total and Core Net Interest Income


	Three months ended
In millions	March 31 2015		December 31 2014		September 30 2014		June 30 2014		March 31 2014
Core net interest income (a)	$	1,944	$	1,971	$	1,957	$	1,982	$	2,032
Total purchase accounting accretion (b)		128		126		147		147		163

Total net interest income	$	2,072	$	2,097	$	2,104	$	2,129	$	2,195

(a)	We believe that core net interest income, a non-GAAP financial measure, is useful in evaluating the performance of our interest-based activities.

(b)	Total purchase accounting accretion includes purchase accounting accretion on purchased impaired loans. Refer to Table 16: Accretion - Purchased Impaired Loans for details for certain of these periods.

Table 9: Details of Net Interest Margin (c)


	Three months ended
In millions	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
Average yields/rates
Yield on interest-earning assets
Total investment securities		2.95	%		3.05	%		2.96	%		3.02	%		3.02	%
Total loans		3.59			3.63			3.71			3.75			3.95
Other		1.14			1.15			1.19			1.76			1.62
Total yield on interest-earning assets		3.15			3.21			3.30			3.44			3.58

Rate on interest-bearing liabilities
Total interest-bearing deposits		.23			.22			.21			.21			.21
Total borrowed funds		1.10			1.17			1.14			1.24			1.18
Total rate on interest-bearing liabilities		.46			.45			.44			.45			.44

Interest rate spread		2.69			2.76			2.86			2.99			3.14
Impact of noninterest-bearing sources		.13			.13			.12			.13			.12

Net interest margin		2.82	%		2.89	%		2.98	%		3.12	%		3.26	%

(c) See note (a) on page 6.

Table 10: Details of Core Net Interest Margin (d)


	Three months ended
In millions	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
Average yields/rates
Yield on interest-earning assets
Total investment securities		2.89	%		2.98	%		2.89	%		2.96	%		2.96	%
Total loans		3.33			3.38			3.42			3.46			3.62
Other		1.13			1.14			1.19			1.74			1.64
Total yield on interest-earning assets		2.96			3.02			3.08			3.22			3.33

Rate on interest-bearing liabilities
Total interest-bearing deposits		.24			.23			.23			.23			.23
Total borrowed funds		.99			1.03			1.00			1.10			1.04
Total rate on interest-bearing liabilities		.44			.43			.42			.43			.43

Interest rate spread		2.52			2.59			2.66			2.79			2.90
Impact of noninterest-bearing sources		.13			.13			.12			.13			.12

Core net interest margin		2.65			2.72			2.78			2.92			3.02
Purchase accounting accretion impact on net interest margin		.17			.17			.20			.20			.24

Net interest margin		2.82	%		2.89	%		2.98	%		3.12	%		3.26	%

(d)

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Table 11: Details of Loans (Unaudited)


In millions	March 31 2015		December 31 2014		September 30 2014		June 30 2014		March 31 2014
Commercial
Retail/wholesale trade	$	17,126	$	16,972	$	16,162	$	16,146	$	16,157
Manufacturing		20,057		18,744		18,649		18,683		17,185
Service providers		13,916		14,103		13,603		13,734		13,576
Real estate related (a)		10,744		10,812		10,722		10,908		10,856
Financial services		6,306		6,178		5,218		4,846		4,720
Health care		9,192		9,017		9,095		8,939		8,836
Other industries		20,309		21,594		20,051		20,280		19,771

Total commercial		97,650		97,420		93,500		93,536		91,101

Commercial real estate
Real estate projects (b)		15,057		14,577		14,564		14,535		14,268
Commercial mortgage		9,498		8,685		8,378		8,384		7,883

Total commercial real estate		24,555		23,262		22,942		22,919		22,151

Equipment lease financing		7,470		7,686		7,621		7,628		7,521

Total commercial lending		129,675		128,368		124,063		124,083		120,773

Consumer
Home equity
Lines of credit		19,918		20,361		20,667		20,959		21,277
Installment		14,147		14,316		14,388		14,507		14,595
Credit card		4,434		4,612		4,449		4,435		4,309
Other consumer
Education		6,448		6,626		6,978		7,118		7,360
Automobile		11,120		11,616		11,548		11,005		10,906
Other		4,491		4,511		4,428		4,317		4,216

Total consumer		60,558		62,042		62,458		62,341		62,663

Residential real estate
Residential mortgage		13,982		13,885		13,805		13,965		14,179
Residential construction		507		522		546		595		627

Total residential real estate		14,489		14,407		14,351		14,560		14,806

Total consumer lending		75,047		76,449		76,809		76,901		77,469

Total loans (c)	$	204,722	$	204,817	$	200,872	$	200,984	$	198,242

(a) Includes loans to customers in the real estate and construction industries. (b) Includes both construction loans and intermediate financing for projects.
(c) Includes purchased impaired loans:	$	4,675	$	4,858	$	5,167	$	5,557	$	5,824
Table 12: Details of Loans Held for Sale (Unaudited)
In millions	March 31 2015		December 31 2014		September 30 2014		June 30 2014		March 31 2014
Commercial mortgage	$	1,037	$	922	$	891	$	900	$	732
Residential mortgage		1,249		1,279		1,211		1,271		1,088
Other		137		61		41		57		282

Total	$	2,423	$	2,262	$	2,143	$	2,228	$	2,102

Table 13: Commitments to Extend Credit (Unaudited)
In millions	March 31 2015		December 31 2014		September 30 2014		June 30 2014		March 31 2014
Commitments to extend credit (a)	$	137,960	$	139,687	$	136,795	$	131,446	$	129,644

(a)	Commitments to extend credit, or net unfunded loan commitments, represent arrangements to lend funds or provide liquidity subject to specified contractual conditions.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

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

Table 14: Change in Allowance for Loan and Lease Losses


Three months ended - in millions	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
Beginning balance	$	3,331		$	3,406		$	3,453		$	3,530		$	3,609
Gross charge-offs:
Commercial		(34	)		(45	)		(60	)		(86	)		(85	)
Commercial real estate		(12	)		(24	)		(14	)		(14	)		(18	)
Equipment lease financing					(5	)		(3	)		(4	)		(2	)
Home equity		(52	)		(62	)		(50	)		(68	)		(95	)
Residential real estate					(14	)		(11	)		(7	)		(8	)
Credit card		(43	)		(38	)		(40	)		(42	)		(43	)
Other consumer		(48	)		(47	)		(44	)		(43	)		(49	)

Total gross charge-offs		(189	)		(235	)		(222	)		(264	)		(300	)
Recoveries:
Commercial		32			51			62			43			51
Commercial real estate		12			20			15			29			20
Equipment lease financing		1			4			4			3			3
Home equity		20			20			19			20			19
Residential real estate		2			3			21			3			(1	)
Credit card		5			5			5			6			5
Other consumer		14			14			14			15			17

Total recoveries		86			117			140			119			114
Net (charge-offs) recoveries:
Commercial		(2	)		6			2			(43	)		(34	)
Commercial real estate					(4	)		1			15			2
Equipment lease financing		1			(1	)		1			(1	)		1
Home equity		(32	)		(42	)		(31	)		(48	)		(76	)
Residential real estate		2			(11	)		10			(4	)		(9	)
Credit card		(38	)		(33	)		(35	)		(36	)		(38	)
Other consumer		(34	)		(33	)		(30	)		(28	)		(32	)

Total net charge-offs		(103	)		(118	)		(82	)		(145	)		(186	)
Provision for credit losses		54			52			55			72			94
Other		(1	)		(1	)		(1	)					(1	)
Net change in allowance for unfunded loan commitments and letters of credit		25			(8	)		(19	)		(4	)		14

Ending balance	$	3,306		$	3,331		$	3,406		$	3,453		$	3,530

Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		.20	%		.23	%		.16	%		.29	%		.38	%
Allowance for loan and lease losses to total loans		1.61			1.63			1.70			1.72			1.78
Commercial lending net charge-offs	$	(1	)	$	1		$	4		$	(29	)	$	(31	)
Consumer lending net charge-offs		(102	)		(119	)		(86	)		(116	)		(155	)

Total net charge-offs	$	(103	)	$	(118	)	$	(82	)	$	(145	)	$	(186	)
Net charge-offs to average loans
Commercial lending		.00	%		.00	%		(.01	)%		.10	%		.11	%
Consumer lending		.55			.62			.44			.60			.81

Table 15: Change in Allowance for Unfunded Loan Commitments and Letters of Credit


Three months ended - in millions	March 31 2015			December 31 2014		September 30 2014		June 30 2014		March 31 2014
Beginning balance	$	259		$	251	$	232	$	228	$	242
Net change in allowance for unfunded loan commitments and letters of credit		(25	)		8		19		4		(14	)

Ending balance	$	234		$	259	$	251	$	232	$	228


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

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

Table 16: Accretion - Purchased Impaired Loans


	Three months ended
	March 31			December 31			March 31
In millions	2015			2014			2014
Impaired loans
Scheduled accretion	$	99		$	106		$	125
Reversal of contractual interest on impaired loans		(55	)		(58	)		(68	)

Scheduled accretion net of contractual interest		44			48			57
Excess cash recoveries (a)		33			32			29

Total impaired loans	$	77		$	80		$	86

(a)	Relates to excess cash recoveries for purchased impaired commercial loans.

Table 17: Purchased Impaired Loans - Accretable Yield


In millions
January 1, 2015	$	1,558		January 1, 2014	$	2,055
Scheduled accretion		(99	)	Scheduled accretion		(125	)
Excess cash recoveries		(33	)	Excess cash recoveries		(29	)
Net reclassifications to (from) accretable from (to) non-accretable and other activity (a)		58		Net reclassifications to (from) accretable from (to) non-accretable and other activity (a)		87

March 31, 2015 (b)	$	1,484		March 31, 2014	$	1,988

(a)

Approximately 90% and 95% of the net reclassification for the quarters ended March 31, 2015 and 2014, respectively, were driven by the consumer portfolio and were due to improvements of cash expected to be collected on loans in future periods. The remaining net reclassifications were predominantly due to future cash flow changes in the commercial portfolio.

(b)	As of March 31, 2015, we estimate that the reversal of contractual interest on purchased impaired loans will total approximately $.8 billion in future periods. This will offset the total net accretable interest in future interest income of $1.5 billion on purchased impaired loans.

Table 18: Valuation of Purchased Impaired Loans


	March 31, 2015						December 31, 2014
Dollars in millions	Balance			Net Investment			Balance			Net Investment
Commercial and commercial real estate loans:
Outstanding balance (a)	$	398					$	466
Recorded investment		276						310
Allowance for loan losses		(80	)					(79	)

Net investment/Carrying value		196			49	%		231			50	%

Consumer and residential mortgage loans:
Outstanding balance (a)		4,343						4,541
Recorded investment		4,399						4,548
Allowance for loan losses		(781	)					(793	)

Net investment/Carrying value		3,618			83	%		3,755			83	%

Total purchased impaired loans:
Outstanding balance (a)		4,741						5,007
Recorded investment		4,675						4,858
Allowance for loan losses		(861	)					(872	)

Net investment/Carrying value	$	3,814			80	%	$	3,986			80	%

(a)

Outstanding balance represents the balance on the loan servicing system for active loans. It is possible for the outstanding balance to be lower than the recorded investment for certain loans due to the use of pool accounting. Our 2014 Form 10-K included, and our first quarter 2015 Form 10-Q will include, additional information on purchased impaired loans.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Details of Nonperforming Assets (Unaudited)

Table 19: Nonperforming Assets by Type


In millions	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
Nonperforming loans, including TDRs (a)
Commercial lending
Commercial
Retail/wholesale trade	$	46		$	48		$	62		$	70		$	49
Manufacturing		59			59			44			69			63
Service providers		63			67			82			94			90
Real estate related (b)		66			66			76			79			122
Financial services		1			4			5			5			5
Health care		28			28			23			23			17
Other industries		17			18			28			54			91

Total commercial		280			290			320			394			437

Commercial real estate
Real estate projects		257			290			346			370			401
Commercial mortgage		36			44			49			65			79

Total commercial real estate		293			334			395			435			480

Equipment lease financing		2			2			3			4			6

Total commercial lending		575			626			718			833			923

Consumer lending (c)
Home equity		1,101			1,112			1,090			1,093			1,117
Residential real estate
Residential mortgage		653			694			725			799			829
Residential construction		12			12			18			17			13
Credit card		3			3			3			3			4
Other consumer		61			63			58			56			61

Total consumer lending		1,830			1,884			1,894			1,968			2,024

Total nonperforming loans (d)		2,405			2,510			2,612			2,801			2,947

OREO and foreclosed assets
Other real estate owned (OREO)		331			351			353			352			343
Foreclosed and other assets		18			19			10			15			14

Total OREO and foreclosed assets (e)		349			370			363			367			357

Total nonperforming assets	$	2,754		$	2,880		$	2,975		$	3,168		$	3,304

Nonperforming loans to total loans		1.17	%		1.23	%		1.30	%		1.39	%		1.49	%
Nonperforming assets to total loans, OREO and foreclosed assets		1.34			1.40			1.48			1.57			1.66
Nonperforming assets to total assets		.78			.83			.89			.97			1.02
Allowance for loan and lease losses to nonperforming loans (f)		137			133			130			123			120

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

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

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

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

(e)

The recorded investment of loans collateralized by residential real estate property that are in process of foreclosure was $.7 billion, $.8 billion, $.7 billion, $.9 billion and $.9 billion at March 31, 2015, December 31, 2014, September 30, 2014, June 30, 2014 and March 31, 2014, which included $.5 billion, $.5 billion, $.5 billion, $.6 billion and $.6 billion, respectively, of loans that are government insured/guaranteed.

(f)	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)

Table 20: Change in Nonperforming Assets


In millions	January 1, 2015 - March 31, 2015			October 1, 2014 - December 31, 2014			July 1, 2014 - September 30, 2014			April 1, 2014 - June 30, 2014			January 1, 2014 - March 31, 2014
Beginning balance	$	2,880		$	2,975		$	3,168		$	3,304		$	3,457
New nonperforming assets		336			470			380			644			633
Charge-offs and valuation adjustments		(124	)		(158	)		(127	)		(148	)		(152	)
Principal activity, including paydowns and payoffs		(170	)		(183	)		(195	)		(300	)		(323	)
Asset sales and transfers to loans held for sale		(93	)		(130	)		(143	)		(212	)		(85	)
Returned to performing status		(75	)		(94	)		(108	)		(120	)		(226	)

Ending balance	$	2,754		$	2,880		$	2,975		$	3,168		$	3,304

Table 21: Largest Individual Nonperforming Assets at March 31, 2015 (a)


In millions
Ranking	Outstandings		Industry
1	$	35	Real Estate, Rental and Leasing
2		16	Manufacturing
3		15	Real Estate, Rental and Leasing
4		10	Manufacturing
5		8	Manufacturing
6		8	Construction
7		8	Wholesale Trade
8		8	Real Estate, Rental and Leasing
9		7	Real Estate, Rental and Leasing
10		7	Health Care and Social Assistance

Total	$	122

As a percent of total nonperforming assets 4%

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

Table 22: Summary of Troubled Debt Restructurings


In millions	March 31 2015		December 31 2014		September 30 2014		June 30 2014		March 31 2014
Total consumer lending	$	2,020	$	2,041	$	2,064	$	2,121	$	2,134
Total commercial lending		510		542		552		546		579

Total TDRs	$	2,530	$	2,583	$	2,616	$	2,667	$	2,713

Nonperforming	$	1,317	$	1,370	$	1,303	$	1,369	$	1,405
Accruing (a)		1,089		1,083		1,174		1,153		1,151
Credit card		124		130		139		145		157

Total TDRs	$	2,530	$	2,583	$	2,616	$	2,667	$	2,713

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

(a)

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Accruing Loans Past Due (Unaudited)

Table 23: Accruing Loans Past Due 30 to 59 Days (a)


	Amount										Percent of Total Outstandings
Dollars in millions	Mar. 31 2015		Dec. 31 2014		Sept. 30 2014		Jun. 30 2014		Mar. 31 2014		Mar. 31 2015			Dec. 31 2014			Sept. 30 2014			Jun. 30 2014			Mar. 31 2014
Commercial	$	73	$	73	$	46	$	71	$	93		.07	%		.07	%		.05	%		.08	%		.10	%
Commercial real estate		24		23		47		17		35		.10			.10			.20			.07			.16
Equipment lease financing		16		11		4		4		17		.21			.14			.05			.05			.23
Home equity		61		70		67		65		76		.18			.20			.19			.18			.21
Residential real estate
Non government insured		72		95		87		87		101		.50			.66			.61			.60			.68
Government insured		70		68		76		74		82		.48			.47			.53			.51			.55
Credit card		25		28		27		26		26		.56			.61			.61			.59			.60
Other consumer
Non government insured		52		62		56		50		51		.24			.27			.24			.22			.23
Government insured		126		152		164		154		149		.57			.67			.71			.69			.66

Total	$	519	$	582	$	574	$	548	$	630		.25			.28			.29			.27			.32

Table 24: Accruing Loans Past Due 60 to 89 Days (a)


	Amount										Percent of Total Outstandings
Dollars in millions	Mar. 31 2015		Dec. 31 2014		Sept. 30 2014		Jun. 30 2014		Mar. 31 2014		Mar. 31 2015			Dec. 31 2014			Sept. 30 2014			Jun. 30 2014			Mar. 31 2014
Commercial	$	20	$	24	$	19	$	26	$	20		.02	%		.02	%		.02	%		.03	%		.02	%
Commercial real estate		23		2		6		48		25		.09			.01			.03			.21			.11
Equipment lease financing				1		1		1							.01			.01			.01
Home equity		30		32		25		27		32		.09			.09			.07			.08			.09
Residential real estate
Non government insured		18		25		24		21		27		.12			.17			.17			.14			.18
Government insured		35		43		41		48		43		.24			.30			.29			.33			.29
Credit card		17		20		18		18		19		.38			.43			.41			.41			.44
Other consumer
Non government insured		18		19		20		15		16		.08			.08			.09			.07			.07
Government insured		82		93		100		94		104		.37			.41			.44			.42			.46

Total	$	243	$	259	$	254	$	298	$	286		.12			.13			.13			.15			.14

Table 25: Accruing Loans Past Due 90 Days or More (a)


	Amount										Percent of Total Outstandings
Dollars in millions	Mar. 31 2015		Dec. 31 2014		Sept. 30 2014		Jun. 30 2014		Mar. 31 2014		Mar. 31 2015			Dec. 31 2014			Sept. 30 2014			Jun. 30 2014			Mar. 31 2014
Commercial	$	35	$	37	$	39	$	35	$	28		.04	%		.04	%		.04	%		.04	%		.03	%
Commercial real estate						1												.00
Equipment lease financing
Residential real estate
Non government insured		26		23		24		23		30		.18			.16			.17			.16			.20
Government insured		634		719		785		872		924		4.38			4.99			5.47			5.99			6.24
Credit card		32		33		29		29		31		.72			.72			.65			.65			.72
Other consumer
Non government insured		17		16		13		12		13		.08			.07			.06			.05			.06
Government insured		244		277		287		281		284		1.11			1.22			1.25			1.25			1.26

Total	$	988	$	1,105	$	1,178	$	1,252	$	1,310		.48			.54			.59			.62			.66

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


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, Virginia, Alabama, Missouri, Georgia, Wisconsin and South Carolina.

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

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

Residential Mortgage Banking directly originates first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint. Mortgage loans represent loans collateralized by one-to-four-family residential real estate. These loans are typically underwritten to government agency and/or third-party standards, and either sold, servicing retained, or held on PNC’s balance sheet. Loan sales are primarily to secondary mortgage conduits of FNMA, FHLMC, Federal Home Loan Banks and third-party investors, or are securitized and issued under the GNMA program. The mortgage servicing operation performs all functions related to servicing mortgage loans, primarily those in first lien position, for various investors and for loans owned by PNC.

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

BlackRock, in which we hold an equity investment, is a leading publicly traded investment management firm providing a broad range of investment and risk management services to institutional and retail clients worldwide. Using a diverse platform of active and index investment strategies across asset classes, BlackRock develops investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. BlackRock also offers an investment and risk management technology platform, risk analytics and advisory services and solutions to a broad base of institutional investors. We hold our equity investment in BlackRock as 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 March 31, 2015, our economic interest in BlackRock was 22%.

Table 26: Period End Employees


	March 31 2015		December 31 2014		September 30 2014		June 30 2014		March 31 2014
Full-time employees
Retail Banking		22,063		22,216		22,103		22,148		22,104
Other full-time employees (a)		27,696		27,529		27,528		27,765		27,740

Total full-time employees		49,759		49,745		49,631		49,913		49,844

Part-time employees
Retail Banking		3,150		3,274		3,410		3,644		3,761
Other part-time employees (a)		563		568		614		802		510

Total part-time employees		3,713		3,842		4,024		4,446		4,271

Total		53,472		53,587		53,655		54,359		54,115

(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

Table 27: Summary of Business Segment Income and Revenue (Unaudited) (a) (b)


	Three months ended
In millions	March 31 2015		December 31 2014			September 30 2014		June 30 2014		March 31 2014
Income (Loss)
Retail Banking	$	202	$	172		$	173	$	225	$	158
Corporate & Institutional Banking		482		564			549		470		523
Asset Management Group		37		45			46		53		37
Residential Mortgage Banking		28		(9	)		12		36		(4	)
Non-Strategic Assets Portfolio		81		76			82		99		110
Other, including BlackRock (b) (c)		174		209			176		169		236

Net income	$	1,004	$	1,057		$	1,038	$	1,052	$	1,060

Revenue
Retail Banking	$	1,526	$	1,520		$	1,521	$	1,514	$	1,494
Corporate & Institutional Banking		1,284		1,444			1,386		1,348		1,298
Asset Management Group		281		281			277		279		270
Residential Mortgage Banking		207		182			185		227		206
Non-Strategic Assets Portfolio		121		140			152		147		148
Other, including BlackRock (b) (c)		312		380			320		295		361

Total revenue	$	3,731	$	3,947		$	3,841	$	3,810	$	3,777

(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. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors. In the first quarter of 2015, enhancements were made to PNC’s funds transfer pricing methodology primarily for costs related to the new regulatory short-term liquidity standards. The enhancements incorporate an additional charge assigned to assets, including for unfunded loan commitments. Conversely, a higher transfer pricing credit has been assigned to those deposits that are accorded higher value under Liquidity Coverage Ratio rules for liquidity purposes. These adjustments apply to business segment results prospectively beginning with the first quarter of 2015. Excluding any changes in business volumes, the estimated impact of this change to net interest income for Retail Banking and Corporate & Institutional Banking were approximately an increase of $55 million and a decrease of $60 million, respectively, for the first quarter of 2015. The impacts to the other business segments were not significant. Prior periods have not been adjusted.

(b)	We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our first quarter 2015 Form 10-Q will include additional information regarding BlackRock.

(c)

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

Table 28: Retail Banking (Unaudited) (a)


	Three months ended
Dollars in millions	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
INCOME STATEMENT
Net interest income	$	1,038		$	986		$	985		$	973		$	980
Noninterest income
Service charges on deposits		146			172			173			148			140
Brokerage		67			64			60			61			55
Consumer services		233			247			248			248			218
Other		42			51			55			84			101

Total noninterest income		488			534			536			541			514

Total revenue		1,526			1,520			1,521			1,514			1,494
Provision for credit losses		49			54			74			4			145
Noninterest expense		1,158			1,195			1,175			1,155			1,100

Pretax earnings		319			271			272			355			249
Income taxes		117			99			99			130			91

Earnings	$	202		$	172		$	173		$	225		$	158

AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	28,152		$	28,457		$	28,684		$	28,959		$	29,317
Indirect auto		9,287			9,209			9,192			9,092			8,994
Indirect other		603			635			675			726			777
Education		6,626			6,895			7,100			7,298			7,547
Credit cards		4,444			4,475			4,401			4,307			4,271
Other		2,347			2,345			2,277			2,189			2,137

Total consumer		51,459			52,016			52,329			52,571			53,043
Commercial and commercial real estate		10,654			10,698			10,801			10,922			11,051
Floor plan		2,213			2,180			2,021			2,291			2,373
Residential mortgage		734			552			584			623			647

Total loans		65,060			65,446			65,735			66,407			67,114
Goodwill and other intangible assets		5,990			6,007			6,025			6,043			6,062
Other assets		2,967			2,946			2,922			2,753			2,744

Total assets	$	74,017		$	74,399		$	74,682		$	75,203		$	75,920

Deposits
Noninterest-bearing demand	$	22,591		$	22,860		$	22,392		$	21,907		$	21,359
Interest-bearing demand		35,650			34,298			33,900			34,272			33,490
Money market		53,105			51,204			50,204			50,142			49,484

Total transaction deposits		111,346			108,362			106,496			106,321			104,333
Savings		12,888			12,244			11,997			11,845			11,288
Certificates of deposit		17,318			17,959			18,720			19,354			19,882

Total deposits		141,552			138,565			137,213			137,520			135,503
Other liabilities		617			555			507			411			398

Total liabilities	$	142,169		$	139,120		$	137,720		$	137,931		$	135,901

PERFORMANCE RATIOS
Return on average assets		1.11	%		.92	%		.92	%		1.20	%		.84	%
Noninterest income to total revenue		32			35			35			36			34
Efficiency		76			79			77			76			74

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

Table 28: Retail Banking (Unaudited) (Continued)


	Three months ended
Dollars in millions, except as noted	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
OTHER INFORMATION (a)								.
Credit-related statistics:
Commercial nonperforming assets	$	131		$	139		$	146		$	158		$	172
Consumer nonperforming assets		1,043			1,059			1,037			1,037			1,059

Total nonperforming assets	$	1,174		$	1,198		$	1,183		$	1,195		$	1,231

Purchased impaired loans (b)	$	553		$	575		$	600		$	631		$	663

Commercial lending net charge-offs (recoveries)	$	1		$	(2	)	$	2		$	11		$	20
Credit card lending net charge-offs		38			33			35			37			37
Consumer lending (excluding credit card) net charge-offs		60			73			56			68			88

Total net charge-offs	$	99		$	104		$	93		$	116		$	145

Commercial lending annualized net charge-off ratio		.03	%		(.06	)%		.06	%		.33	%		.60	%
Credit card lending annualized net charge-off ratio		3.47	%		2.93	%		3.16	%		3.45	%		3.51	%
Consumer lending (excluding credit card) annualized net charge-off ratio		.51	%		.60	%		.46	%		.56	%		.72	%

Total annualized net charge-off ratio		.62	%		.63	%		.56	%		.70	%		.88	%

Home equity portfolio credit statistics: (c)
% of first lien positions at origination (d)		54	%		54	%		53	%		53	%		53	%
Weighted-average loan-to-value ratios (LTVs) (d) (e)		76	%		77	%		78	%		79	%		79	%
Weighted-average updated FICO scores (f)		748			748			747			748			745
Annualized net charge-off ratio		.42	%		.52	%		.35	%		.54	%		.75	%
Delinquency data - % of total loans: (g)
Loans 30 - 59 days past due		.18	%		.20	%		.19	%		.19	%		.21	%
Loans 60 - 89 days past due		.09	%		.09	%		.07	%		.07	%		.08	%

Accruing loans past due		.27	%		.29	%		.26	%		.26	%		.29	%

Nonperforming loans		3.12	%		3.13	%		3.04	%		3.08	%		3.12	%

Other statistics:
ATMs		8,754			8,605			8,178			7,977			8,001
Branches (h)		2,660			2,697			2,691			2,695			2,703
Brokerage account client assets (billions) (i)	$	44		$	43		$	43		$	43		$	41

Customer-related statistics (average):
Non-teller deposit transactions (j)		40	%		38	%		36	%		33	%		31	%
Digital consumer customers (k)		50	%		49	%		47	%		45	%		43	%

(a)	Presented as of period end, except for net charge-offs and annualized net charge-off ratios, which are for the three months ended, and customer-related statistics which are quarterly averages.

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

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

(d)	Lien positions and LTV calculations reflect management assumptions where data limitations exist.

(e)	LTV statistics are based upon current information.

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

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

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

(i)	Amounts include cash and money market balances.

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

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Table 29: Corporate & Institutional Banking (Unaudited) (a)


	Three months ended
Dollars in millions	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
INCOME STATEMENT
Net interest income	$	855		$	956		$	922		$	921		$	934
Noninterest income
Corporate service fees		310			369			346			312			268
Other		119			119			118			115			96

Noninterest income		429			488			464			427			364

Total revenue		1,284			1,444			1,386			1,348			1,298
Provision for credit losses (benefit)		17			21			(4	)		103			(13	)
Noninterest expense		514			544			528			504			488

Pretax earnings		753			879			862			741			823
Income taxes		271			315			313			271			300

Earnings	$	482		$	564		$	549		$	470		$	523

AVERAGE BALANCE SHEET
Loans
Commercial	$	84,712		$	82,066		$	79,083		$	78,022		$	75,506
Commercial real estate		22,090			21,720			21,492			21,234			20,039
Equipment lease financing		6,914			6,977			6,922			6,878			6,789

Total commercial lending		113,716			110,763			107,497			106,134			102,334
Consumer		1,352			1,442			1,203			1,016			1,125

Total loans		115,068			112,205			108,700			107,150			103,459
Goodwill and other intangible assets		3,835			3,867			3,806			3,804			3,826
Loans held for sale		1,106			1,103			1,092			932			894
Other assets		11,169			10,784			10,073			10,139			9,758

Total assets	$	131,178		$	127,959		$	123,671		$	122,025		$	117,937

Deposits
Noninterest-bearing demand	$	46,976		$	46,769		$	44,730		$	42,521		$	42,772
Money market		22,286			22,706			21,821			20,277			20,678
Other		9,340			8,883			7,839			7,565			7,531

Total deposits		78,602			78,358			74,390			70,363			70,981
Other liabilities		8,271			7,833			7,412			7,476			7,476

Total liabilities	$	86,873		$	86,191		$	81,802		$	77,839		$	78,457

PERFORMANCE RATIOS
Return on average assets		1.49	%		1.75	%		1.76	%		1.54	%		1.80	%
Noninterest income to total revenue		33			34			33			32			28
Efficiency		40			38			38			37			38

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 19

Table 29: Corporate & Institutional Banking (Unaudited) (Continued) (a)


	Three months ended
Dollars in millions, except as noted	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
COMMERCIAL LOAN SERVICING PORTFOLIO - SERVICED FOR PNC AND OTHERS (in billions)
Beginning of period	$	377		$	363		$	353		$	351		$	347
Acquisitions/additions		29			35			25			17			22
Repayments/transfers		(16	)		(21	)		(15	)		(15	)		(18	)

End of period	$	390		$	377		$	363		$	353		$	351

OTHER INFORMATION
Consolidated revenue from: (b)
Treasury Management (c)	$	319		$	338		$	326		$	313		$	311
Capital Markets (d)	$	180		$	230		$	212		$	178		$	157
Commercial mortgage banking activities
Commercial mortgage loans held for sale (e)	$	26		$	42		$	32		$	33		$	19
Commercial mortgage loan servicing income (f)		56			58			56			53			55
Commercial mortgage servicing rights valuation, net of economic hedge (g)		16			5			8			14			11

Total	$	98		$	105		$	96		$	100		$	85
Average Loans (by C&IB business)
Corporate Banking	$	58,227		$	56,746		$	54,678		$	53,633		$	52,253
Real Estate		29,918			29,163			28,111			27,642			26,003
Business Credit		14,217			13,849			13,481			13,198			12,534
Equipment Finance		10,941			10,805			10,582			10,290			10,210
Other		1,765			1,642			1,848			2,387			2,459

Total average loans	$	115,068		$	112,205		$	108,700		$	107,150		$	103,459
Total loans (h)	$	114,946		$	113,935		$	109,792		$	108,990		$	105,398
Net carrying amount of commercial mortgage servicing rights (h)	$	494		$	506		$	532		$	515		$	529
Credit-related statistics:
Nonperforming assets (h)	$	516		$	557		$	616		$	715		$	786
Purchased impaired loans (h) (i)	$	221		$	246		$	316		$	370		$	428
Net charge-offs (recoveries)	$	(1	)	$	(2	)	$	(7	)	$	15		$	2

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

(b)	Represents consolidated PNC amounts. Our first quarter 2015 Form 10-Q will include additional information regarding these items.

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

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

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

(f)

Includes net interest income and noninterest income, primarily in corporate services fees, from loan servicing and ancillary services, net of changes in fair value on commercial mortgage servicing rights due to time and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(g)	Includes amounts reported in corporate service fees.

(h)	Presented as of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 20

Table 30: Asset Management Group (Unaudited) (a)


	Three months ended
Dollars in millions, except as noted	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
INCOME STATEMENT
Net interest income	$	73		$	74		$	72		$	72		$	71
Noninterest income		208			207			205			207			199

Total revenue		281			281			277			279			270
Provision for credit losses (benefit)		12			(3	)		(4	)		(6	)		12
Noninterest expense		210			211			209			202			199

Pretax earnings		59			73			72			83			59
Income taxes		22			28			26			30			22

Earnings	$	37		$	45		$	46		$	53		$	37

AVERAGE BALANCE SHEET
Loans
Consumer	$	5,650		$	5,606		$	5,497		$	5,411		$	5,311
Commercial and commercial real estate		932			954			970			998			1,023
Residential mortgage		865			854			822			789			771

Total loans		7,447			7,414			7,289			7,198			7,105
Goodwill and other intangible assets		238			247			255			264			272
Other assets		258			255			231			223			222

Total assets	$	7,943		$	7,916		$	7,775		$	7,685		$	7,599

Deposits
Noninterest-bearing demand	$	1,345		$	1,436		$	1,362		$	1,327		$	1,338
Interest-bearing demand		4,241			4,152			3,857			3,912			3,893
Money market		4,621			4,025			4,005			3,857			3,889

Total transaction deposits		10,207			9,613			9,224			9,096			9,120
CDs/IRAs/savings deposits		455			467			463			446			436

Total deposits		10,662			10,080			9,687			9,542			9,556
Other liabilities		47			53			51			48			53

Total liabilities	$	10,709		$	10,133		$	9,738		$	9,590		$	9,609

PERFORMANCE RATIOS
Return on average assets		1.89	%		2.26	%		2.35	%		2.77	%		1.97	%
Noninterest income to total revenue		74			74			74			74			74
Efficiency		75			75			75			72			74

OTHER INFORMATION
Total nonperforming assets (b)	$	63		$	66		$	73		$	76		$	80
Purchased impaired loans (b) (c)	$	82		$	83		$	89		$	94		$	96
Total net charge-offs	$	4		$	—		$	—		$	2		$	1
CLIENT ASSETS UNDER ADMINISTRATION (in billions) (b) (d)
Personal	$	115		$	115		$	113		$	113		$	112
Institutional		150			148			146			144			143

Total	$	265		$	263		$	259		$	257		$	255

Asset Type
Equity	$	151		$	151		$	147		$	149		$	145
Fixed income		74			72			72			71			66
Liquidity/Other		40			40			40			37			44

Total	$	265		$	263		$	259		$	257		$	255

Discretionary client assets under management
Personal	$	88		$	87		$	85		$	85		$	84
Institutional		48			48			47			46			46

Total	$	136		$	135		$	132		$	131		$	130

Asset Type
Equity	$	75		$	75		$	72		$	73		$	71
Fixed income		41			40			40			40			34
Liquidity/Other		20			20			20			18			25

Total	$	136		$	135		$	132		$	131		$	130

Nondiscretionary client assets under administration
Personal	$	27		$	28		$	28		$	28		$	28
Institutional		102			100			99			98			97

Total	$	129		$	128		$	127		$	126		$	125

Asset Type
Equity	$	76		$	76		$	75		$	76		$	74
Fixed income		33			32			32			31			32
Liquidity/Other		20			20			20			19			19

Total	$	129		$	128		$	127		$	126		$	125

(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 client assets.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 21

Table 31: Residential Mortgage Banking (Unaudited) (a)


	Three months ended
Dollars in millions, except as noted	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
INCOME STATEMENT
Net interest income	$	30		$	34		$	38		$	37		$	40
Noninterest income
Loan servicing revenue
Servicing fees		48			54			53			56			61
Mortgage servicing rights valuation, net of economic hedge		25			1			11			1			(1	)
Loan sales revenue
Benefit / (provision) for residential mortgage repurchase obligations		(1	)		(4	)		(13	)		(2	)		19
Loan sales revenue		105			97			98			137			88
Other								(2	)		(2	)		(1	)

Total noninterest income		177			148			147			190			166

Total revenue		207			182			185			227			206
Provision for credit losses (benefit)		2			(1	)		(1	)		1			(1	)
Noninterest expense		161			196			168			169			213

Pretax earnings (loss)		44			(13	)		18			57			(6	)
Income taxes (benefit)		16			(4	)		6			21			(2	)

Earnings (loss)	$	28		$	(9	)	$	12		$	36		$	(4	)

AVERAGE BALANCE SHEET
Portfolio loans	$	1,282		$	1,479		$	1,506		$	1,742		$	2,036
Loans held for sale		1,147			1,090			1,186			1,135			1,068
Mortgage servicing rights (MSR)		843			948			1,002			1,035			1,073
Other assets		3,973			4,246			3,724			3,574			4,600

Total assets	$	7,245		$	7,763		$	7,418		$	7,486		$	8,777

Deposits	$	2,215		$	2,302		$	2,415		$	2,318		$	2,100
Borrowings and other liabilities		2,840			3,057			2,601			2,403			3,464

Total liabilities	$	5,055		$	5,359		$	5,016		$	4,721		$	5,564

PERFORMANCE RATIOS
Return on average assets		1.57	%		(.46	)%		.64	%		1.93	%		(.18	)%
Noninterest income to total revenue		86			81			79			84			81
Efficiency		78			108			91			74			103

RESIDENTIAL MORTGAGE SERVICING PORTFOLIO SERVICED FOR THIRD PARTIES (in billions)
Beginning of period	$	108		$	111		$	111		$	114		$	114
Acquisitions		8						2						2
Additions		2			1			3			2			2
Repayments/transfers		(5	)		(4	)		(5	)		(5	)		(4	)

End of period	$	113		$	108		$	111		$	111		$	114

Servicing portfolio - third-party statistics: (b)
Fixed rate		94	%		94	%		94	%		94	%		94	%
Adjustable rate/balloon		6	%		6	%		6	%		6	%		6	%
Weighted-average interest rate		4.41	%		4.47	%		4.49	%		4.54	%		4.56	%
MSR asset value (in billions)	$	.8		$	.8		$	1.0		$	1.0		$	1.1
MSR capitalization value (in basis points)		74			78			88			87			92
Weighted-average servicing fee (in basis points)		27			27			27			27			28

RESIDENTIAL MORTGAGE REPURCHASE RESERVE
Beginning of period	$	107		$	108		$	101		$	103		$	131
(Benefit) / Provision		1			4			13			2			(19	)
Losses - loan repurchases		(2	)		(5	)		(6	)		(4	)		(9	)

End of period	$	106		$	107		$	108		$	101		$	103

OTHER INFORMATION
Loan origination volume (in billions)	$	2.6		$	2.4		$	2.6		$	2.6		$	1.9
Loan sale margin percentage		4.09	%		3.96	%		3.80	%		5.38	%		4.53	%
Percentage of originations represented by:
Purchase volume (c)		31	%		42	%		50	%		50	%		37	%
Refinance volume		69	%		58	%		50	%		50	%		63	%
Total nonperforming assets (b)	$	105		$	120		$	135		$	160		$	173

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

(b)	As of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 22

Table 32: Non-Strategic Assets Portfolio (Unaudited) (a)


	Three months ended
Dollars in millions	March 31 2015			December 31 2014			September 30 2014			June 30 2014			March 31 2014
INCOME STATEMENT
Net interest income	$	112		$	122		$	146		$	137		$	142
Noninterest income		9			18			6			10			6

Total revenue		121			140			152			147			148
Provision for credit losses (benefit)		(31	)		(20	)		(8	)		(39	)		(52	)
Noninterest expense		24			39			30			30			26

Pretax earnings		128			121			130			156			174
Income taxes		47			45			48			57			64

Earnings	$	81		$	76		$	82		$	99		$	110

AVERAGE BALANCE SHEET
Commercial Lending:
Commercial/Commercial real estate	$	125		$	149		$	164		$	187		$	220
Lease financing		625			645			689			686			681

Total commercial lending		750			794			853			873			901

Consumer Lending:
Home equity		3,021			3,154			3,328			3,483			3,625
Residential real estate		4,184			4,399			4,794			4,961			5,104

Total consumer lending		7,205			7,553			8,122			8,444			8,729

Total portfolio loans		7,955			8,347			8,975			9,317			9,630
Other assets (b)		(679	)		(678	)		(744	)		(740	)		(741	)

Total assets	$	7,276		$	7,669		$	8,231		$	8,577		$	8,889

Deposits and other liabilities	$	224		$	219		$	223		$	227		$	231

Total liabilities	$	224		$	219		$	223		$	227		$	231

PERFORMANCE RATIOS
Return on average assets		4.51	%		3.93	%		3.95	%		4.63	%		5.02	%
Noninterest income to total revenue		7			13			4			7			4
Efficiency		20			28			20			20			18

OTHER INFORMATION
Nonperforming assets (c)	$	669		$	710		$	731		$	798		$	798
Purchased impaired loans (c) (d)	$	3,808		$	3,943		$	4,147		$	4,497		$	4,654
Net charge-offs (recoveries)	$	—		$	12		$	(6	)	$	10		$	31
Annualized net charge-off ratio		(.00	)%		.57	%		(.27	)%		.43	%		1.31	%
LOANS (c)
Commercial Lending:
Commercial/Commercial real estate	$	120		$	130		$	162		$	176		$	201
Lease financing		626			625			691			688			683

Total commercial lending		746			755			853			864			884

Consumer Lending:
Home equity		2,944			3,091			3,242			3,410			3,554
Residential real estate		4,139			4,290			4,665			4,928			5,092

Total consumer lending		7,083			7,381			7,907			8,338			8,646

Total loans	$	7,829		$	8,136		$	8,760		$	9,202		$	9,530

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

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

(c)	As of period end.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 23

Glossary Of Terms

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

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

Annualized - Adjusted to reflect a full year of activity.

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

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

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

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

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

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

Basis point - One hundredth of a percentage point.

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

Cash recoveries - Cash recoveries used in the context of purchased impaired loans represent cash payments for a single purchased impaired loan not included within a pool of loans from customers that exceeded the recorded investment of that loan.

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

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

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

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

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

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

Discretionary client 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.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 24

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

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

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

Efficiency - Noninterest expense divided by total revenue.

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

Fee income - When referring to the components of Noninterest income, we use the term fee income to refer to the following categories within Noninterest income: Asset management; Consumer services; Corporate services; Residential mortgage; and Service charges on deposits.

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

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

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

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

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

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

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

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

Loss given default (LGD) - An estimate of loss, net of recovery based on collateral type, collateral value, loan exposure, or the guarantor(s) quality and guaranty type (full or partial). Each loan has its own LGD. The LGD risk rating measures the percentage of exposure of a specific credit obligation that we expect to lose if default occurs. LGD is net of recovery, through any means, including but not limited to the liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 25

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

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

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

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

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

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

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

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

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

Pretax earnings - Income before income taxes and noncontrolling interests.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 26

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

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

Purchase accounting accretion - Accretion of the discounts and premiums on acquired assets and liabilities. The purchase accounting accretion is recognized in net interest income over the weighted-average life of the financial instruments using the constant effective yield method. Accretion for a single purchased impaired loan not included within a pool of loans includes any cash recoveries on that loan received in excess of the recorded investment.

Purchased impaired loans - Acquired loans (or pools of loans) determined to be credit impaired under FASB ASC 310-30 (AICPA SOP 03-3). Loans (or pools of 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.

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

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

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

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

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

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

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

Total equity - Total shareholders’ equity plus noncontrolling interests.

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

Transitional Basel III common equity – Common equity calculated under Basel III using phased in definitions and deductions applicable to PNC for 2014.

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


THE PNC FINANCIAL SERVICES GROUP, INC.		Page 27

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

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

Attached files

Stock widget

Investing forum