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

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EX-99.2 - EXHIBIT 99.2 - PNC FINANCIAL SERVICES GROUP, INC.	a4q17earningsslides8k.htm
8-K - FORM 8-K - PNC FINANCIAL SERVICES GROUP, INC.	a4q178-kfs.htm

Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2017

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2017

(UNAUDITED)



Consolidated Results:	Page
Income Statement	1
Balance Sheet	2
Average Balance Sheet	3
Details of Net Interest Margin	4
Per Share Related Information	5
Loans	5
Allowance for Loan and Lease Losses	6
Nonperforming Assets	7-8
Accruing Loans Past Due	9

Business Segment Results:
Descriptions	10
Period End Employees	10
Income and Revenue	11
Retail Banking	12-13
Corporate & Institutional Banking	14
Asset Management Group	15

Glossary of Terms	16-18

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 12, 2018. 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, including residential mortgage, corporate and institutional banking and asset management, 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, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Georgia, Alabama, Missouri, Wisconsin and South Carolina. PNC also provides certain products and services internationally.



THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Fourth Quarter 2017 Financial Supplement (Unaudited)
Financial Supplement Table Reference

Table	Description	Page
1	Consolidated Income Statement	1
2	Consolidated Balance Sheet	2
3	Average Consolidated Balance Sheet	3
4	Details of Net Interest Margin	4
5	Per Share Related Information	5
6	Details of Loans	5
7	Change in Allowance for Loan and Lease Losses	6
8	Nonperforming Assets by Type	7
9	Change in Nonperforming Assets	8
10	Largest Individual Nonperforming Assets at September 30, 2017	8
11	Accruing Loans Past Due 30 to 59 Days	9
12	Accruing Loans Past Due 60 to 89 Days	9
13	Accruing Loans Past Due 90 Days or More	9
14	Period End Employees	10
15	Summary of Business Segment Income and Revenue	11
16	Retail Banking	12-13
17	Corporate & Institutional Banking	14
18	Asset Management Group	15



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 1

Table 1: Consolidated Income Statement (Unaudited)



	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
In millions, except per share data	2017			2017			2017			2017			2016			2017			2016
Interest Income
Loans	$	2,154		$	2,140		$	2,040		$	1,904		$	1,886		$	8,238		$	7,414
Investment securities	509			501			495			493			457			1,998			1,826
Other	162			154			139			123			110			578			412
Total interest income	2,825			2,795			2,674			2,520			2,453			10,814			9,652
Interest Expense
Deposits	190			170			143			120			114			623			430
Borrowed funds	290			280			273			240			209			1,083			831
Total interest expense	480			450			416			360			323			1,706			1,261
Net interest income	2,345			2,345			2,258			2,160			2,130			9,108			8,391
Noninterest Income
Asset management	720			421			398			403			399			1,942			1,521
Consumer services	366			357			360			332			349			1,415			1,388
Corporate services	423			371			434			393			387			1,621			1,504
Residential mortgage	29			104			104			113			142			350			567
Service charges on deposits	183			181			170			161			172			695			667
Other (a)	194			346			336			322			295			1,198			1,124
Total noninterest income	1,915			1,780			1,802			1,724			1,744			7,221			6,771
Total revenue	4,260			4,125			4,060			3,884			3,874			16,329			15,162
Provision For Credit Losses	125			130			98			88			67			441			433
Noninterest Expense
Personnel	1,438			1,274			1,263			1,249			1,231			5,224			4,841
Occupancy	240			204			202			222			210			868			861
Equipment	274			259			281			251			254			1,065			974
Marketing	60			62			67			55			60			244			247
Other	1,049			657			666			625			686			2,997			2,553
Total noninterest expense	3,061			2,456			2,479			2,402			2,441			10,398			9,476
Income before income taxes (benefit) and noncontrolling interests	1,074			1,539			1,483			1,394			1,366			5,490			5,253
Income taxes (benefit)	(1,017		)	413			386			320			319			102			1,268
Net income	2,091			1,126			1,097			1,074			1,047			5,388			3,985
Less: Net income attributable to noncontrolling interests	11			12			10			17			22			50			82
Preferred stock dividends (b)	55			63			55			63			42			236			209
Preferred stock discount accretion and redemptions	2			1			2			21			1			26			6
Net income attributable to common shareholders	$	2,023		$	1,050		$	1,030		$	973		$	982		$	5,076		$	3,688
Earnings Per Common Share
Basic	$	4.23		$	2.18		$	2.12		$	1.99		$	2.01		$	10.49		$	7.42
Diluted	$	4.18		$	2.16		$	2.10		$	1.96		$	1.97		$	10.36		$	7.30
Average Common Shares Outstanding
Basic	476			479			484			487			487			481			494
Diluted	480			483			488			492			494			486			500
Efficiency	72		%	60		%	61		%	62		%	63		%	64		%	62		%
Noninterest income to total revenue	45		%	43		%	44		%	44		%	45		%	44		%	45		%
Effective tax rate (c)	(94.7		)%	26.8		%	26.0		%	23.0		%	23.4		%	1.9		%	24.1		%


(a)	Includes net gains (losses) on sales of securities of $(3) million, $(1) million, $13 million, $(2) million, and $(4) million for the quarters ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively, and $7 million and $16 million for the years ended December 31, 2017 and December 31, 2016, respectively.


(b)	Dividends are payable quarterly other than Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

(c)

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 fourth quarter and full year 2017 results benefited from the new federal tax legislation. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. As a result, the amounts could be adjusted during the measurement period, which will end in December 2018.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 2

Table 2: Consolidated Balance Sheet (Unaudited)



	December 31			September 30			June 30			March 31			December 31
In millions, except par value	2017			2017			2017			2017			2016
Assets
Cash and due from banks	$	5,249		$	4,736		$	5,039		$	5,003		$	4,879
Interest-earning deposits with banks (a)	28,595			24,713			22,482			27,877			25,711
Loans held for sale (b)	2,655			1,764			2,030			1,414			2,504
Investment securities – available for sale	57,618			57,254			58,878			59,339			60,104
Investment securities – held to maturity	18,513			17,740			17,553			17,093			15,843
Loans (b)	220,458			221,109			218,034			212,826			210,833
Allowance for loan and lease losses	(2,611		)	(2,605		)	(2,561		)	(2,561		)	(2,589		)
Net loans	217,847			218,504			215,473			210,265			208,244
Equity investments (c)	11,392			11,009			10,819			10,900			10,728
Mortgage servicing rights	1,832			1,854			1,867			1,867			1,758
Goodwill	9,173			9,163			9,163			9,103			9,103
Other (b)	27,894			28,454			28,886			28,083			27,506
Total assets	$	380,768		$	375,191		$	372,190		$	370,944		$	366,380
Liabilities
Deposits
Noninterest-bearing	$	79,864		$	79,967		$	79,550		$	79,246		$	80,230
Interest-bearing	185,189			180,768			179,626			181,464			176,934
Total deposits	265,053			260,735			259,176			260,710			257,164
Borrowed funds
Federal Home Loan Bank borrowings	21,037			20,538			19,039			19,549			17,549
Bank notes and senior debt	28,062			26,467			26,054			23,745			22,972
Subordinated debt	5,200			5,601			6,111			6,889			8,009
Other (b)	4,789			4,958			5,202			4,879			4,176
Total borrowed funds	59,088			57,564			56,406			55,062			52,706
Allowance for unfunded loan commitments and letters of credit	297			293			304			305			301
Accrued expenses and other liabilities	8,745			10,147			10,119			8,964			9,355
Total liabilities	333,183			328,739			326,005			325,041			319,526
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares	2,710			2,710			2,710			2,709			2,709
Capital surplus	16,374			16,343			16,326			16,275			16,651
Retained earnings	35,481			33,819			33,133			32,372			31,670
Accumulated other comprehensive income (loss)	(148		)	(22		)	(98		)	(279		)	(265		)
Common stock held in treasury at cost: 69, 66, 62, 57 and 57 shares	(6,904		)	(6,462		)	(5,987		)	(5,323		)	(5,066		)
Total shareholders’ equity	47,513			46,388			46,084			45,754			45,699
Noncontrolling interests	72			64			101			149			1,155
Total equity	47,585			46,452			46,185			45,903			46,854
Total liabilities and equity	$	380,768		$	375,191		$	372,190		$	370,944		$	366,380


(a)	Amounts include balances held with the Federal Reserve Bank of Cleveland of $28.3 billion, $24.3 billion, $22.1 billion, $27.5 billion and $25.1 billion as of December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively.


(b)	Amounts include assets and liabilities for which PNC has elected the fair value option. Our third quarter 2017 Form 10-Q included, and our 2017 Form 10-K 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.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 3



Table 3: Average Consolidated Balance Sheet (Unaudited) (a)
	Three months ended										Twelve months ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
In millions	2017		2017		2017		2017		2016		2017		2016
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	25,338	$	25,493	$	25,862	$	26,385	$	26,374	$	25,766	$	25,442
Non-agency	2,577		2,758		2,947		3,127		3,303		2,851		3,613
Commercial mortgage-backed	4,542		4,838		5,493		5,919		6,283		5,193		6,369
Asset-backed	5,330		5,546		5,863		5,992		5,977		5,681		5,741
U.S. Treasury and government agencies	13,646		13,081		12,881		13,101		12,805		13,178		10,590
Other	4,940		5,011		5,093		5,293		5,237		5,083		5,064
Total securities available for sale	56,373		56,727		58,139		59,817		59,979		57,752		56,819
Securities held to maturity
Residential mortgage-backed	13,976		13,549		12,790		11,852		11,465		13,049		10,529
Commercial mortgage-backed	963		1,211		1,393		1,458		1,532		1,255		1,693
Asset-backed	220		358		490		556		585		405		677
U.S. Treasury and government agencies	739		561		533		529		444		591		308
Other	1,974		2,000		2,007		2,041		2,030		2,005		2,020
Total securities held to maturity	17,872		17,679		17,213		16,436		16,056		17,305		15,227
Total investment securities	74,245		74,406		75,352		76,253		76,035		75,057		72,046
Loans
Commercial	111,365		109,503		106,944		103,084		101,880		107,752		100,319
Commercial real estate	29,432		29,676		29,655		29,178		29,247		29,487		28,729
Equipment lease financing	7,670		7,704		7,602		7,497		7,398		7,618		7,463
Consumer	55,814		56,062		56,342		56,843		57,164		56,262		57,499
Residential real estate	16,840		16,273		15,830		15,651		15,193		16,152		14,807
Total loans	221,121		219,218		216,373		212,253		210,882		217,271		208,817
Interest-earning deposits with banks (b)	25,567		23,859		22,543		24,192		25,245		24,043		26,328
Other interest-earning assets	8,759		9,024		9,748		8,395		7,983		8,983		7,843
Total interest-earning assets	329,692		326,507		324,016		321,093		320,145		325,354		315,034
Noninterest-earning assets	47,136		46,890		46,286		45,323		46,041		46,415		46,226
Total assets	$	376,828	$	373,397	$	370,302	$	366,416	$	366,186	$	371,769	$	361,260
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	60,954	$	62,325	$	62,157	$	63,921	$	67,271	$	62,331	$	71,530
Demand	57,128		56,743		57,513		56,797		55,223		57,045		52,701
Savings	45,817		43,869		42,128		39,095		35,224		42,749		29,643
Time deposits	17,438		17,571		17,214		17,058		18,409		17,322		18,890
Total interest-bearing deposits	181,337		180,508		179,012		176,871		176,127		179,447		172,764
Borrowed funds
Federal Home Loan Bank borrowings	19,565		19,190		20,405		20,416		17,465		19,890		18,385
Bank notes and senior debt	27,778		26,602		24,817		22,992		21,653		25,564		21,906
Subordinated debt	5,433		5,970		6,607		7,102		8,287		6,273		8,324
Other	5,261		5,254		5,695		4,432		4,127		5,162		4,324
Total borrowed funds	58,037		57,016		57,524		54,942		51,532		56,889		52,939
Total interest-bearing liabilities	239,374		237,524		236,536		231,813		227,659		236,336		225,703
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	80,152		78,931		77,375		78,050		80,925		78,634		78,085
Accrued expenses and other liabilities	10,801		10,749		10,432		10,081		10,828		10,518		11,083
Equity	46,501		46,193		45,959		46,472		46,774		46,281		46,389
Total liabilities and equity	$	376,828	$	373,397	$	370,302	$	366,416	$	366,186	$	371,769	$	361,260


(a)	Calculated using average daily balances.

(b)

Amounts include balances held with the Federal Reserve Bank of Cleveland of $25.3 billion, $23.4 billion, $22.1 billion, $23.7 billion and $24.7 billion for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, respectively, and $23.6 billion and $25.8 billion for the twelve months ended December 31, 2017 and December 31, 2016, respectively.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 4



Table 4: Details of Net Interest Margin (Unaudited) (a)
	Three months ended										Twelve months ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
	2017		2017		2017		2017		2016		2017		2016
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.58	%	2.61	%	2.51	%	2.57	%	2.30	%	2.57	%	2.43	%
Non-agency	4.29	%	5.91	%	5.58	%	5.59	%	5.18	%	5.37	%	4.84	%
Commercial mortgage-backed	4.68	%	2.71	%	2.56	%	2.35	%	2.25	%	3.00	%	2.62	%
Asset-backed	2.82	%	2.53	%	2.48	%	2.50	%	2.39	%	2.59	%	2.30	%
U.S. Treasury and government agencies	1.79	%	1.83	%	1.78	%	1.66	%	1.41	%	1.78	%	1.46	%
Other	3.32	%	3.08	%	3.08	%	2.93	%	2.97	%	3.11	%	3.00	%
Total securities available for sale	2.73	%	2.63	%	2.56	%	2.53	%	2.33	%	2.62	%	2.46	%
Securities held to maturity
Residential mortgage-backed	2.74	%	2.81	%	2.82	%	2.79	%	2.52	%	2.79	%	2.75	%
Commercial mortgage-backed	4.11	%	4.42	%	4.30	%	3.50	%	4.12	%	4.06	%	3.66	%
Asset-backed	2.66	%	2.53	%	2.35	%	2.21	%	2.29	%	2.47	%	2.07	%
U.S. Treasury and government agencies	2.85	%	3.07	%	3.10	%	3.07	%	3.25	%	3.05	%	3.57	%
Other	5.28	%	5.30	%	5.28	%	5.34	%	5.35	%	5.24	%	5.64	%
Total securities held to maturity	3.10	%	3.20	%	3.22	%	3.16	%	3.04	%	3.17	%	3.22	%
Total investment securities	2.82	%	2.77	%	2.71	%	2.67	%	2.48	%	2.74	%	2.62	%
Loans
Commercial	3.59	%	3.54	%	3.45	%	3.24	%	3.11	%	3.51	%	3.13	%
Commercial real estate	3.68	%	3.65	%	3.48	%	3.27	%	3.30	%	3.57	%	3.36	%
Equipment lease financing	2.33	%	3.71	%	3.65	%	3.34	%	3.33	%	3.26	%	3.56	%
Consumer	4.72	%	4.67	%	4.52	%	4.47	%	4.35	%	4.59	%	4.31	%
Residential real estate	4.41	%	4.45	%	4.55	%	4.55	%	4.64	%	4.49	%	4.70	%
Total loans	3.91	%	3.92	%	3.82	%	3.67	%	3.59	%	3.86	%	3.61	%
Interest-earning deposits with banks	1.33	%	1.26	%	1.04	%	.81	%	.56	%	1.11	%	.52	%
Other interest-earning assets	3.55	%	3.47	%	3.38	%	3.54	%	3.80	%	3.48	%	3.56	%
Total yield on interest-earning assets	3.45	%	3.45	%	3.35	%	3.22	%	3.09	%	3.39	%	3.13	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	.45	%	.41	%	.30	%	.23	%	.21	%	.35	%	.20	%
Demand	.17	%	.14	%	.12	%	.10	%	.08	%	.13	%	.08	%
Savings	.51	%	.45	%	.45	%	.42	%	.42	%	.46	%	.40	%
Time deposits	.85	%	.79	%	.73	%	.69	%	.66	%	.77	%	.66	%
Total interest-bearing deposits	.42	%	.37	%	.32	%	.28	%	.26	%	.35	%	.25	%
Borrowed funds
Federal Home Loan Bank borrowings	1.48	%	1.37	%	1.23	%	1.09	%	1.01	%	1.31	%	.84	%
Bank notes and senior debt	2.04	%	2.05	%	2.00	%	1.85	%	1.55	%	2.02	%	1.61	%
Subordinated debt	3.49	%	3.48	%	3.66	%	3.49	%	3.05	%	3.54	%	3.17	%
Other	1.74	%	1.60	%	1.67	%	1.36	%	1.41	%	1.61	%	1.39	%
Total borrowed funds	1.96	%	1.93	%	1.89	%	1.74	%	1.60	%	1.90	%	1.57	%
Total rate on interest-bearing liabilities	.79	%	.75	%	.70	%	.62	%	.56	%	.72	%	.56	%
Interest rate spread	2.66	%	2.70	%	2.65	%	2.60	%	2.53	%	2.67	%	2.57	%
Impact of noninterest-bearing sources (b)	.22		.21		.19		.17		.16		.20		.16
Net interest margin	2.88	%	2.91	%	2.84	%	2.77	%	2.69	%	2.87	%	2.73	%

(a)

Calculated as annualized taxable-equivalent net interest income divided by average earning assets. To provide more meaningful comparisons of net interest yields for all earning assets, interest income includes the effects of taxable-equivalent adjustments using a statutory federal income tax rate of 35% to increase tax-exempt interest income to a taxable-equivalent basis. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2017, September 30, 2017, June 30, 2017, March 31, 2017 and December 31, 2016, were $54 million, $55 million, $54 million, $52 million and $50 million, respectively. The taxable-equivalent adjustments to net interest income for the twelve months ended December 31, 2017 and December 31, 2016 were $215 million and $195 million, respectively.


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



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 5



Table 5: Per Share Related Information (Unaudited)
	Three months ended										Twelve months ended
	December 31		September 30		June 30		March 31		December 31		December 31		December 31
In millions, except per share data	2017		2017		2017		2017		2016		2017		2016
Basic
Net income	$	2,091	$	1,126	$	1,097	$	1,074	$	1,047	$	5,388	$	3,985
Less:
Net income (loss) attributable to noncontrolling interests	11		12		10		17		22		50		82
Preferred stock dividends (a)	55		63		55		63		42		236		209
Preferred stock discount accretion and redemptions	2		1		2		21		1		26		6
Net income attributable to common shareholders	2,023		1,050		1,030		973		982		5,076		3,688
Less:
Dividends and undistributed earnings allocated to nonvested restricted shares	8		5		4		6		7		23		26
Net income attributable to basic common shares	$	2,015	$	1,045	$	1,026	$	967	$	975	$	5,053	$	3,662
Basic weighted-average common shares outstanding	476		479		484		487		487		481		494
Basic earnings per common share	$	4.23	$	2.18	$	2.12	$	1.99	$	2.01	$	10.49	$	7.42
Diluted
Net income attributable to basic common shares	$	2,015	$	1,045	$	1,026	$	967	$	975	$	5,053	$	3,662
Less: Impact of BlackRock earnings per share dilution	8		3		1		4		2		16		12
Net income attributable to diluted common shares	$	2,007	$	1,042	$	1,025	$	963	$	973	$	5,037	$	3,650
Basic weighted-average common shares outstanding	476		479		484		487		487		481		494
Dilutive potential common shares	4		4		4		5		7		5		6
Diluted weighted-average common shares outstanding	480		483		488		492		494		486		500
Diluted earnings per common share	$	4.18	$	2.16	$	2.10	$	1.96	$	1.97	$	10.36	$	7.30


(a)	Dividends are payable quarterly other than the Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

Table 6: Details of Loans (Unaudited)



	December 31		September 30		June 30		March 31		December 31
In millions	2017		2017		2017		2017		2016
Commercial lending
Commercial
Manufacturing	$	20,578	$	20,658	$	20,533	$	20,054	$	18,891
Retail/wholesale trade	17,846		18,256		18,101		17,446		16,752
Service providers	15,100		15,014		15,111		14,185		14,707
Real estate related (a)	12,496		12,174		12,179		11,690		11,920
Health care	9,739		9,659		9,541		9,603		9,491
Financial services	8,532		10,968		8,493		7,710		7,241
Transportation and warehousing	5,609		5,597		5,589		5,260		5,170
Other industries	20,627		18,991		19,010		17,817		17,192
Total commercial	110,527		111,317		108,557		103,765		101,364
Commercial real estate	28,978		29,516		29,489		29,435		29,010
Equipment lease financing	7,934		7,694		7,719		7,462		7,581
Total commercial lending	147,439		148,527		145,765		140,662		137,955
Consumer lending
Home equity	28,364		28,811		29,219		29,577		29,949
Residential real estate	17,212		16,601		16,049		15,781		15,598
Credit card	5,699		5,375		5,211		5,112		5,282
Other consumer
Automobile	12,880		12,743		12,488		12,337		12,380
Education	4,454		4,620		4,751		4,974		5,159
Other	4,410		4,432		4,551		4,383		4,510
Total consumer lending	73,019		72,582		72,269		72,164		72,878
Total loans	$	220,458	$	221,109	$	218,034	$	212,826	$	210,833

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



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 6

Allowance for Loan and Lease Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses



	December 31			September 30			June 30			March 31			December 31
Three months ended - in millions	2017			2017			2017			2017			2016
Beginning balance	$	2,605		$	2,561		$	2,561		$	2,589		$	2,619
Gross charge-offs:
Commercial	(46		)	(39		)	(48		)	(53		)	(61		)
Commercial real estate	(15		)	(6		)	(2		)	(1		)	(4		)
Equipment lease financing	(5		)	(4		)	(1		)	(1		)	(1		)
Home equity	(25		)	(26		)	(38		)	(34		)	(28		)
Residential real estate	(1		)	(4		)				(4		)	(3		)
Credit card	(46		)	(44		)	(46		)	(46		)	(39		)
Other consumer	(71		)	(62		)	(59		)	(59		)	(58		)
Total gross charge-offs	(209		)	(185		)	(194		)	(198		)	(194		)
Recoveries:
Commercial	20			17			20			24			30
Commercial real estate	7			6			8			7			14
Equipment lease financing	3			2			1			1			1
Home equity	24			24			23			20			21
Residential real estate	6			4			4			4			2
Credit card	5			5			6			5			5
Other consumer	21			21			22			19			15
Total recoveries	86			79			84			80			88
Net (charge-offs) / recoveries:
Commercial	(26		)	(22		)	(28		)	(29		)	(31		)
Commercial real estate	(8		)				6			6			10
Equipment lease financing	(2		)	(2		)
Home equity	(1		)	(2		)	(15		)	(14		)	(7		)
Residential real estate	5						4						(1		)
Credit card	(41		)	(39		)	(40		)	(41		)	(34		)
Other consumer	(50		)	(41		)	(37		)	(40		)	(43		)
Total net charge-offs	(123		)	(106		)	(110		)	(118		)	(106		)
Provision for credit losses	125			130			98			88			67
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit	(4		)	11			1			(4		)	9
Other	8			9			11			6
Ending balance	$	2,611		$	2,605		$	2,561		$	2,561		$	2,589
Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)	.22		%	.19		%	.20		%	.23		%	.20		%
Allowance for loan and lease losses to total loans	1.18		%	1.18		%	1.17		%	1.20		%	1.23		%
Commercial lending net charge-offs	$	(36	)	$	(24	)	$	(22	)	$	(23	)	$	(21	)
Consumer lending net charge-offs	(87		)	(82		)	(88		)	(95		)	(85		)
Total net charge-offs	$	(123	)	$	(106	)	$	(110	)	$	(118	)	$	(106	)
Net charge-offs to average loans
Commercial lending	.10		%	.06		%	.06		%	.07		%	.06		%
Consumer lending	.48		%	.45		%	.49		%	.53		%	.47		%



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 7

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type



	December 31			September 30			June 30			March 31			December 31
In millions	2017			2017			2017			2017			2016
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade	$	115		$	76		$	86		$	106		$	87
Manufacturing	55			63			65			41			31
Service providers	35			48			52			44			40
Real estate related (a)	33			37			26			28			47
Financial services													1
Health care	15			23			33			23			30
Transportation and warehousing	27			15			16			3			20
Other industries	149			157			190			155			240
Total commercial	429			419			468			400			496
Commercial real estate	123			128			127			137			143
Equipment lease financing	2			3			4			12			16
Total commercial lending	554			550			599			549			655
Consumer lending (b)
Home equity	818			814			837			900			914
Residential real estate	400			423			439			473			501
Credit card	6			5			5			4			4
Other consumer
Automobile	76			71			66			61			55
Education and other	11			10			11			11			15
Total consumer lending	1,311			1,323			1,358			1,449			1,489
Total nonperforming loans (c)	1,865			1,873			1,957			1,998			2,144
OREO, foreclosed and other assets	170			194			196			214			230
Total nonperforming assets	$	2,035		$	2,067		$	2,153		$	2,212		$	2,374
Nonperforming loans to total loans	.85		%	.85		%	.90		%	.94		%	1.02		%
Nonperforming assets to total loans, OREO, foreclosed and other assets	.92		%	.93		%	.99		%	1.04		%	1.12		%
Nonperforming assets to total assets	.53		%	.55		%	.58		%	.60		%	.65		%
Allowance for loan and lease losses to nonperforming loans	140		%	139		%	131		%	128		%	121		%


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


(b)	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.


(c)	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.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 8

Details of Nonperforming Assets (Unaudited) (Continued)

Table 9: Change in Nonperforming Assets



	October 1, 2017 -			July 1, 2017 -			April 1, 2017 -			January 1, 2017 -			October 1, 2016 -
In millions	December 31, 2017			September 30, 2017			June 30, 2017			March 31, 2017			December 31, 2016
Beginning balance	$	2,067		$	2,153		$	2,212		$	2,374		$	2,375
New nonperforming assets	307			303			436			330			518
Charge-offs and valuation adjustments	(141		)	(142		)	(152		)	(150		)	(132		)
Principal activity, including paydowns and payoffs	(87		)	(162		)	(161		)	(228		)	(279		)
Asset sales and transfers to loans held for sale	(40		)	(38		)	(58		)	(42		)	(57		)
Returned to performing status	(71		)	(47		)	(124		)	(72		)	(51		)
Ending balance	$	2,035		$	2,067		$	2,153		$	2,212		$	2,374

Table 10: Largest Individual Nonperforming Assets at December 31, 2017 (a)



In millions
Ranking	Outstandings	Industry
1	$44	Wholesale Trade
2	40	Information
3	31	Wholesale Trade
4	28	Mining, Quarrying, Oil and Gas Extraction
5	25	Mining, Quarrying, Oil and Gas Extraction
6	20	Manufacturing
7	14	Manufacturing
8	14	Construction
9	14	Transportation and Warehousing
10	13	Real Estate, Rental and Leasing
Total	$243
As a percent of total nonperforming assets		12%

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



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 9

Accruing Loans Past Due (Unaudited)

Table 11: Accruing Loans Past Due 30 to 59 Days (a)



	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31
Dollars in millions	2017		2017		2017		2017		2016		2017		2017		2017		2017		2016
Commercial	$	45	$	44	$	42	$	62	$	81	.04	%	.04	%	.04	%	.06	%	.08	%
Commercial real estate	27		8		4		15		5		.09	%	.03	%	.01	%	.05	%	.02	%
Equipment lease financing	17		4		2		19		29		.21	%	.05	%	.03	%	.25	%	.38	%
Home equity	78		74		61		57		64		.27	%	.26	%	.21	%	.19	%	.21	%
Residential real estate
Non government insured	90		75		78		62		103		.52	%	.45	%	.49	%	.39	%	.66	%
Government insured	61		60		51		60		56		.35	%	.36	%	.32	%	.38	%	.36	%
Credit card	43		40		34		32		33		.75	%	.74	%	.65	%	.63	%	.62	%
Other consumer
Automobile	79		71		44		35		51		.61	%	.56	%	.35	%	.28	%	.41	%
Education and other
Non government insured	25		30		24		22		37		.28	%	.33	%	.26	%	.24	%	.38	%
Government insured	80		80		93		94		103		.90	%	.88	%	1.00	%	1.00	%	1.07	%
Total	$	545	$	486	$	433	$	458	$	562	.25	%	.22	%	.20	%	.22	%	.27	%

Table 12: Accruing Loans Past Due 60 to 89 Days (a)



	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31
Dollars in millions	2017		2017		2017		2017		2016		2017		2017		2017		2017		2016
Commercial	$	25	$	28	$	26	$	29	$	20	.02	%	.03	%	.02	%	.03	%	.02	%
Commercial real estate	2		13		1		6		2		.01	%	.04	%	.00	%	.02	%	.01	%
Equipment lease financing	1		3		4				1		.01	%	.04	%	.05	%			.01	%
Home equity	26		31		24		23		30		.09	%	.11	%	.08	%	.08	%	.10	%
Residential real estate
Non government insured	21		17		14		23		18		.12	%	.10	%	.09	%	.15	%	.12	%
Government insured	53		54		55		54		50		.31	%	.33	%	.34	%	.34	%	.32	%
Credit card	26		25		20		21		21		.46	%	.47	%	.38	%	.41	%	.40	%
Other consumer
Automobile	20		16		12		10		12		.16	%	.13	%	.10	%	.08	%	.10	%
Education and other
Non government insured	12		15		9		11		12		.14	%	.17	%	.10	%	.12	%	.12	%
Government insured	52		53		54		50		66		.59	%	.59	%	.58	%	.53	%	.68	%
Total	$	238	$	255	$	219	$	227	$	232	.11	%	.12	%	.10	%	.11	%	.11	%

Table 13: Accruing Loans Past Due 90 Days or More (a)



	Amount										Percent of Total Outstandings
	Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Dec. 31		Sept. 30		Jun. 30		Mar. 31		Dec. 31
Dollars in millions	2017		2017		2017		2017		2016		2017		2017		2017		2017		2016
Commercial	$	39	$	47	$	50	$	40	$	39	.04	%	.04	%	.05	%	.04	%	.04	%
Commercial real estate					2										.01	%
Residential real estate
Non government insured	24		12		11		10		24		.14	%	.07	%	.07	%	.06	%	.15	%
Government insured	462		406		400		422		476		2.68	%	2.45	%	2.49	%	2.67	%	3.05	%
Credit card	45		38		36		37		37		.79	%	.71	%	.69	%	.72	%	.70	%
Other consumer
Automobile	8		5		4		5		5		.06	%	.04	%	.03	%	.04	%	.04	%
Education and other
Non government insured	11		9		8		9		10		.12	%	.10	%	.09	%	.10	%	.10	%
Government insured	148		161		163		176		191		1.67	%	1.78	%	1.75	%	1.88	%	1.98	%
Total	$	737	$	678	$	674	$	699	$	782	.33	%	.31	%	.31	%	.33	%	.37	%

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



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 10

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and 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, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Georgia, Alabama, Missouri, Wisconsin and South Carolina. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to government agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Our mortgage servicing operation performs all functions related to servicing residential mortgage loans for investors and for loans we own. Brokerage, investment management and cash management products and services include managed accounts, education accounts, retirement accounts and trust and estate services.

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 and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are provided nationally. We offer certain products and services internationally.

Asset Management Group provides 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. Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth families. Institutional asset management provides advisory, custody and retirement administration services. The business also offers PNC proprietary mutual funds. Institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments, primarily located in our geographic footprint.

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, advisory and technology services and solutions to a broad base of institutional and wealth management investors. Our equity investment in BlackRock provides us with an additional source of noninterest income and increases our overall revenue diversification. BlackRock is a publicly traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At December 31, 2017, our economic interest in BlackRock was 22%.

Table 14: Period End Employees (a)



	December 31	September 30	June 30	March 31	December 31
	2017	2017	2017	2017	2016
Full-time employees
Retail Banking	29,604	29,486	29,463	29,606	29,491
Other full-time employees	20,754	20,637	20,399	20,065	19,869
Total full-time employees	50,358	50,123	49,862	49,671	49,360
Part-time employees
Retail Banking	2,368	2,422	2,554	2,492	2,458
Other part-time employees	180	223	540	192	188
Total part-time employees	2,548	2,645	3,094	2,684	2,646
Total	52,906	52,768	52,956	52,355	52,006

(a) See note (a) on page 11. In each of the second and third quarters of 2017, certain personnel were moved from Other into Retail Banking. Prior periods have been revised to reflect these changes.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 11

Table 15: Summary of Business Segment Income and Revenue (Unaudited) (a) (b) (c)



	Three months ended											Year ended
	December 31			September 30		June 30		March 31		December 31		December 31		December 31
In millions	2017			2017		2017		2017		2016		2017		2016
Income (loss)
Retail Banking	$	(145	)	$	232	$	230	$	213	$	228	$	530	$	1,023
Corporate & Institutional Banking	937			525		518		484		545		2,464		1,909
Asset Management Group	56			47		52		47		55		202		210
Other, including BlackRock (d)	1,243			322		297		330		219		2,192		843
Net income	$	2,091		$	1,126	$	1,097	$	1,074	$	1,047	$	5,388	$	3,985

Revenue
Retail Banking	$	1,535		$	1,819	$	1,784	$	1,724	$	1,775	$	6,862	$	7,204
Corporate & Institutional Banking	1,502			1,479		1,478		1,363		1,393		5,822		5,347
Asset Management Group	297			292		290		289		288		1,168		1,151
Other, including BlackRock (d)	926			535		508		508		418		2,477		1,460
Total revenue	$	4,260		$	4,125	$	4,060	$	3,884	$	3,874	$	16,329	$	15,162

(a)

Effective for the first quarter of 2017, as a result of changes to how we manage our businesses, we realigned our segments and, accordingly, have changed the basis of presentation of our segments, resulting in four reportable business segments: Retail Banking, Corporate & Institutional Banking, Asset Management Group and BlackRock. For purposes of this presentation, we have combined BlackRock with Other. All 2016 prior periods presented were revised to conform to the new segment alignment.

(b)

Our business information is presented based on our internal management reporting practices. 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. We periodically refine our internal methodologies as management reporting practices are enhanced. In the first quarter of 2017, we made certain adjustments to our internal funds transfer pricing methodology primarily relating to weighted average lives of certain non-maturity deposits. These changes in methodology affected business segment results, primarily adversely impacting net interest income for Corporate & Institutional Banking and Retail Banking, offset by increased net interest income in Other. All 2016 prior periods presented were revised to reflect our change in internal funds transfer pricing methodology.

(c)

The fourth quarter and full year 2017 results benefited from the new federal tax legislation. Our business segment results for these periods reflect the allocation of the impact of the new tax legislation to our business segments, including the revaluation of our deferred taxes. Certain tax legislation amounts are considered reasonable estimates as of December 31, 2017. As a result, the amounts could be adjusted during the measurement period, which will end in December 2018.


(d)	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. We provide additional information on these activities in our Form 10-K and Form 10-Q filings with the SEC.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 12

Table 16: Retail Banking (Unaudited) (a)



	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions	2017			2017			2017			2017			2016			2017			2016
Income Statement
Net interest income	$	1,190		$	1,176		$	1,139		$	1,121		$	1,120		$	4,626		$	4,511
Noninterest income	345			643			645			603			655			2,236			2,693
Total revenue	1,535			1,819			1,784			1,724			1,775			6,862			7,204
Provision for credit losses	149			77			50			71			87			347			297
Noninterest expense	1,391			1,375			1,370			1,315			1,328			5,451			5,291
Pretax earnings (loss)	(5		)	367			364			338			360			1,064			1,616
Income taxes	140			135			134			125			132			534			593
Earnings (loss)	$	(145	)	$	232		$	230		$	213		$	228		$	530		$	1,023
Average Balance Sheet
Loans held for sale	$	819		$	802		$	730		$	843		$	1,060		$	799		$	942
Loans
Consumer
Home equity	$	24,933		$	25,173		$	25,413		$	25,601		$	25,768		$	25,278		$	26,204
Automobile	12,767			12,484			12,220			12,146			11,868			12,407			11,248
Education	4,567			4,723			4,913			5,131			5,289			4,832			5,562
Credit cards	5,450			5,280			5,137			5,121			5,099			5,248			4,889
Other	1,793			1,787			1,760			1,756			1,762			1,773			1,789
Total consumer	49,510			49,447			49,443			49,755			49,786			49,538			49,692
Commercial and commercial real estate	10,513			10,630			10,925			11,006			11,082			10,767			11,410
Residential mortgage	12,950			12,382			11,918			11,688			11,169			12,238			10,682
Total loans	$	72,973		$	72,459		$	72,286		$	72,449		$	72,037		$	72,543		$	71,784
Total assets	$	88,883		$	88,642		$	88,671		$	87,109		$	86,133		$	88,663		$	85,871
Deposits
Noninterest-bearing demand	$	30,344		$	30,222		$	29,540		$	29,010		$	29,422		$	29,788		$	28,364
Interest-bearing demand	40,954			40,762			41,465			40,649			39,170			40,958			38,584
Money market	33,922			35,671			37,523			39,321			41,009			36,592			44,855
Savings	41,536			39,908			38,358			35,326			32,111			38,802			27,340
Certificates of deposit	12,554			12,962			13,304			13,735			14,150			13,135			14,770
Total deposits	$	159,310		$	159,525		$	160,190		$	158,041		$	155,862		$	159,275		$	153,913
Performance Ratios
Return on average assets	(.65		)%	1.04		%	1.04		%	.99		%	1.05		%	.60		%	1.19		%
Noninterest income to total revenue	22		%	35		%	36		%	35		%	37		%	33		%	37		%
Efficiency	91		%	76		%	77		%	76		%	75		%	79		%	73		%


(a)	See notes (a) and (c) on page 11.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 13

Retail Banking (Unaudited) (Continued)



	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions, except as noted	2017			2017			2017			2017			2016			2017			2016
Supplemental Noninterest Income Information
Consumer services	$	279		$	273		$	277		$	250		$	269		$	1,079		$	1,061
Brokerage	$	81		$	77		$	78		$	76		$	73		$	312		$	295
Residential mortgage	$	29		$	104		$	104		$	113		$	142		$	350		$	567
Service charges on deposits	$	177		$	174		$	163		$	154		$	165		$	668		$	639
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	127		$	129		$	131		$	130		$	125
Serviced portfolio acquisitions	$	1		$	2		$	8		$	8		$	3		$	19		$	19
MSR asset value (b)	$	1.2		$	1.2		$	1.2		$	1.3		$	1.2
MSR capitalization value (in basis points) (b)	92			95			95			97			94
Servicing income: (in millions)
Servicing fees, net (c)	$	45		$	46		$	44		$	52		$	42		$	187		$	192
Mortgage servicing rights valuation, net of economic hedge	$	(60	)	$	7		$	11		$	12		$	35		$	(30	)	$	92
Residential mortgage loan statistics
Loan origination volume (in billions)	$	2.4		$	2.5		$	2.2		$	1.9		$	3.0		$	9.0		$	10.6
Loan sale margin percentage	2.71		%	2.80		%	2.74		%	2.96		%	2.79		%	2.80		%	3.17		%
Percentage of originations represented by:
Purchase volume (d)	50		%	57		%	61		%	43		%	33		%	53		%	40		%
Refinance volume	50		%	43		%	39		%	57		%	67		%	47		%	60		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	54		%	54		%	52		%	52		%	51		%	53		%	49		%
Digital consumer customers (f)	63		%	62		%	62		%	61		%	60		%	62		%	58		%
Credit-related statistics
Nonperforming assets	$	1,129		$	1,126		$	1,149		$	1,209		$	1,257
Net charge-offs	$	99		$	85		$	87		$	100		$	90		$	371		$	351
Other statistics
ATMs	9,051			8,987			8,972			8,976			9,024
Branches (g)	2,459			2,474			2,481			2,508			2,520
Universal branches (h)	512			517			518			527			526
Brokerage account client assets (in billions) (i)	$	49		$	48		$	46		$	46		$	44


(a)	Represents mortgage loan servicing balances for third parties and the related income.


(b)	Presented as of period end, except for customer-related statistics which are averages for the quarterly and year-to-date periods, respectively, and net charge-offs, which are for the three months and year-ended, respectively.


(c)	Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan prepayments and loans that were paid down or paid off during the period.


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


(e)	Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.


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


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


(h)	Included in total branches, represents branches operating under our Universal model.


(i)	Includes cash and money market balances.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 14

Table 17: Corporate & Institutional Banking (Unaudited) (a)



	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions	2017			2017			2017			2017			2016			2017			2016
Income Statement
Net interest income	$	898		$	924		$	890		$	839		$	864		$	3,551		$	3,312
Noninterest income	604			555			588			524			529			2,271			2,035
Total revenue	1,502			1,479			1,478			1,363			1,393			5,822			5,347
Provision for credit losses (benefit)	(14		)	62			87			25			(3		)	160			177
Noninterest expense	643			599			602			584			567			2,428			2,222
Pretax earnings	873			818			789			754			829			3,234			2,948
Income taxes (benefit)	(64		)	293			271			270			284			770			1,039
Earnings	$	937		$	525		$	518		$	484		$	545		$	2,464		$	1,909
Average Balance Sheet
Loans held for sale	$	845		$	917		$	716		$	1,116		$	965		$	898		$	868
Loans
Commercial	$	100,726		$	98,794		$	96,012		$	92,116		$	90,816		$	96,937		$	88,934
Commercial real estate	27,259			27,559			27,575			27,091			27,124			27,372			26,677
Equipment lease financing	7,670			7,704			7,602			7,497			7,398			7,619			7,463
Total commercial lending	135,655			134,057			131,189			126,704			125,338			131,928			123,074
Consumer	107			222			278			331			352			233			424
Total loans	$	135,762		$	134,279		$	131,467		$	127,035		$	125,690		$	132,161		$	123,498
Total assets	$	151,721		$	150,948		$	148,267		$	142,592		$	142,325		$	148,414		$	140,309
Deposits
Noninterest-bearing demand	$	48,116		$	47,180		$	46,327		$	47,423		$	49,772		$	47,264		$	48,072
Money market	23,992			23,413			21,321			21,086			22,569			22,464			22,543
Interest-bearing demand and other	17,247			16,879			16,016			15,391			16,190			16,389			13,943
Total deposits	$	89,355		$	87,472		$	83,664		$	83,900		$	88,531		$	86,117		$	84,558
Performance Ratios
Return on average assets	2.45		%	1.38		%	1.40		%	1.38		%	1.52		%	1.66		%	1.36		%
Noninterest income to total revenue	40		%	38		%	40		%	38		%	38		%	39		%	38		%
Efficiency	43		%	41		%	41		%	43		%	41		%	42		%	42		%
Other Information
Consolidated revenue from: (b)
Treasury Management (c)	$	401		$	384		$	372		$	359		$	358		$	1,516		$	1,348
Capital Markets (c)	$	271		$	231		$	268		$	247		$	208		$	1,017		$	808
Commercial mortgage banking activities
Commercial mortgage loans held for sale (d)	$	42		$	22		$	38		$	13		$	50		$	115		$	127
Commercial mortgage loan servicing income (e)	59			56			55			58			62			228			248
Commercial mortgage servicing rights valuation, net of economic hedge (f)	13			6			19			16			22			54			44
Total	$	114		$	84		$	112		$	87		$	134		$	397		$	419
Average Loans (by C&IB business)
Corporate Banking	$	57,064		$	56,867		$	54,937		$	53,839		$	52,920		$	55,701		$	51,392
Real Estate	38,949			38,516			38,318			37,136			37,262			38,235			36,493
Business Credit	16,612			16,097			15,645			14,839			14,741			15,804			14,763
Equipment Finance	13,912			13,744			13,481			12,478			12,096			13,408			11,826
Commercial Banking	6,957			7,042			7,124			7,041			6,914			7,028			7,159
Other	2,268			2,013			1,962			1,702			1,757			1,985			1,865
Total average loans	$	135,762		$	134,279		$	131,467		$	127,035		$	125,690		$	132,161		$	123,498
MSR asset value (g)	$	668		$	628		$	618		$	606		$	576
Credit-related statistics
Nonperforming assets (g)	$	531		$	549		$	586		$	546		$	691
Net charge-offs	$	29		$	22		$	21		$	21		$	17		$	93		$	180


(a)	See notes (a) and (c) on page 11.


(b)	Represents consolidated amounts.


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


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


(e)	Includes net interest income and noninterest income (primarily in corporate service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to time decay and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.


(f)	Includes amounts reported in corporate service fees.


(g)	Presented as of period end.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 15

Table 18: Asset Management Group (Unaudited) (a)



	Three months ended															Year ended
	December 31			September 30			June 30			March 31			December 31			December 31			December 31
Dollars in millions, except as noted	2017			2017			2017			2017			2016			2017			2016
Income Statement
Net interest income	$	71		$	72		$	73		$	71		$	73		$	287		$	300
Noninterest income	226			220			217			218			215			881			851
Total revenue	297			292			290			289			288			1,168			1,151
Provision for credit losses (benefit)	7			3			(7		)	(2		)	(6		)	1			(6		)
Noninterest expense	217			214			215			217			207			863			825
Pretax earnings	73			75			82			74			87			304			332
Income taxes	17			28			30			27			32			102			122
Earnings	$	56		$	47		$	52		$	47		$	55		$	202		$	210
Average Balance Sheet
Loans
Consumer	$	4,894		$	4,977		$	5,089		$	5,113		$	5,266		$	5,018		$	5,436
Commercial and commercial real estate	745			680			700			728			738			715			754
Residential mortgage	1,433			1,330			1,246			1,190			1,137			1,301			1,058
Total loans	$	7,072		$	6,987		$	7,035		$	7,031		$	7,141		$	7,034		$	7,248
Total assets	$	7,545		$	7,464		$	7,516		$	7,476		$	7,597		$	7,511		$	7,707
Deposits
Noninterest-bearing demand	$	1,609		$	1,464		$	1,468		$	1,433		$	1,497		$	1,528		$	1,431
Interest-bearing demand	3,517			3,469			3,704			3,829			3,844			3,628			4,013
Money market	2,863			3,058			3,219			3,500			3,682			3,158			4,128
Savings	4,282			3,961			3,770			3,768			3,113			3,947			2,303
Other	288			237			230			246			272			250			275
Total deposits	$	12,559		$	12,189		$	12,391		$	12,776		$	12,408		$	12,511		$	12,150
Performance Ratios
Return on average assets	2.94		%	2.50		%	2.78		%	2.55		%	2.87		%	2.69		%	2.72		%
Noninterest income to total revenue	76		%	75		%	75		%	75		%	75		%	75		%	74		%
Efficiency	73		%	73		%	74		%	75		%	72		%	74		%	72		%
Other Information
Nonperforming assets (b)	$	49		$	45		$	49		$	51		$	53
Net charge-offs	$	(1	)	$	3		$	1		$	1		$	2		$	4		$	9
Client Assets Under Administration (in billions) (b) (c)
Discretionary client assets under management	$	151		$	146		$	141		$	141		$	137
Nondiscretionary client assets under administration	131			129			125			123			120
Total	$	282		$	275		$	266		$	264		$	257
Discretionary client assets under management
Personal	$	94		$	90		$	89		$	87		$	85
Institutional	57			56			52			54			52
Total	$	151		$	146		$	141		$	141		$	137


(a)	See notes (a) and (c) on page 11.


(b)	As of period end.


(c)	Excludes brokerage account client assets.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 16

Glossary of Terms

Adjusted average total assets - Primarily consisted 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).

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 qualifying 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).

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 - Total shareholders' equity less the liquidation value of preferred stock.

Credit valuation adjustment - Represents an adjustment to the fair value of our derivatives for our own and counterparties’ non-performance risk.

Criticized commercial loans - Loans with potential or identified weaknesses based upon internal risk ratings that comply with the regulatory classification definitions of “Special Mention,” “Substandard” or “Doubtful.”

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.

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: 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.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 17

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.

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. Our product set includes loans priced using LIBOR as a benchmark.

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

Loss given default (LGD) - An estimate of loss, net of recovery based on collateral type, collateral value, loan exposure, and other factors. 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.

Nonaccrual loans - Loans for which we do not accrue interest income. Nonaccrual loans include nonperforming loans, in addition to loans accounted for under the 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, foreclosed and other 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.



THE PNC FINANCIAL SERVICES GROUP, INC.		Page 18

Other real estate owned (OREO), foreclosed and other assets - Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed and other assets include real and personal property, equity interests in corporations, partnerships, and limited liability companies. Excludes certain assets that have a government-guarantee which are classified as other receivables.

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

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.

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.

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 income - 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.

Transitional Basel III common equity Tier 1 capital – Common equity Tier 1 capital calculated under Basel III using phased in definitions and deductions applicable to us during the related presentation period and standardized approach risk-weighted assets.

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

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

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