8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934

July 19, 2005

Date of Report (Date of earliest event reported)

THE PNC FINANCIAL SERVICES GROUP, INC.

(Exact name of registrant as specified in its charter)

Commission File Number 001-09718

Pennsylvania	25-1435979
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

One PNC Plaza

249 Fifth Avenue

Pittsburgh, Pennsylvania 15222-2707

(Address of principal executive offices, including zip code)

(412) 762-2000

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02 Results of Operations and Financial Condition.

On July 19, 2005, The PNC Financial Services Group, Inc. (“the Corporation”) issued a press release regarding the Corporation’s earnings and business results for the quarter ended June 30, 2005. The Corporation also provided supplementary financial information on its web site, including financial information disclosed in connection with its earnings press release, and provided electronic slides on its web site used in connection with a related investor conference call scheduled for July 19, 2005. Copies of the press release, supplementary financial information and electronic slides are included in this Report as Exhibits 99.1, 99.2 and 99.3, respectively, and are furnished herewith.

Item 9.01 Financial Statements and Exhibits.

(c) Exhibits. The exhibits listed on the Exhibit Index accompanying this Form 8-K are furnished herewith.

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SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	THE PNC FINANCIAL SERVICES GROUP, INC.
	(Registrant)
Date: July 19, 2005	By:	/s/ Samuel R. Patterson
		Samuel R. Patterson
		Controller

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EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Press release dated July 19, 2005	Furnished herewith
99.2	Financial Supplement (unaudited) for Second Quarter 2005	Furnished herewith
99.3	Electronic slides	Furnished herewith

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EX-99.1

Exhibit 99.1

CONTACTS:

MEDIA:

Brian E. Goerke

(412) 762-4550

corporate.communications@pnc.com

INVESTORS:

William H. Callihan

(412) 762-8257

investor.relations@pnc.com

PNC REPORTS SECOND QUARTER EARNINGS OF $282 MILLION

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Company Announces Plan to Realize $400 Million Benefit

through One PNC Initiative; 3,000 Positions to be Eliminated

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New Corporate Structure to Enhance

Customer Experience, Drive Efficiency

PITTSBURGH, July 19, 2005 – The PNC Financial Services Group, Inc. (NYSE: PNC) today reported second quarter 2005 earnings of $282 million, or $0.98 per diluted share. Earnings a year ago were $304 million, or $1.07 per diluted share, and earnings for the first quarter of 2005 were $354 million, or $1.24 per diluted share. Earnings for the second quarter of 2005 included integration costs and dilution from operations of $18 million after tax, or $.08 per diluted share, related to the acquisition of Riggs National Corporation. For the first six months of 2005, the company earned $636 million, or $2.22 per diluted share, compared with $632 million, or $2.22 per diluted share, for the first six months of 2004.

“We produced a strong quarter despite challenging capital markets conditions,” said James E. Rohr, chairman and chief executive officer. “Loans, deposits and our customer base continued to grow, and asset quality remained excellent. These strong trends, along with the many early successes of our entry into the Greater Washington, D.C. marketplace, speak to the strength of the PNC franchise.”

Separately, the company announced the plans of its “One PNC” initiative. As a result of this comprehensive effort, PNC intends to save approximately $300 million in costs and achieve at least $100 million in revenue growth on an annual run-rate basis compared with the fourth quarter of 2004.

SECOND QUARTER HIGHLIGHTS

• The Riggs acquisition was completed on Friday, May 13, 2005. A successful conversion of all Riggs customers to PNC’s systems was completed over the following weekend. Loan and deposit balances as well as customer acquisition in PNC’s new Greater Washington Area met our expectations, and early trends are encouraging.

• Taxable-equivalent net interest income increased 12 percent compared with a year ago and 6 percent compared with last quarter as a result of increased earning assets and higher yields on assets.

• Average total loans increased $7.1 billion, or 18 percent, compared with the second quarter of 2004, driven by targeted sales efforts to capitalize on increased market demand. Four percent of the growth was attributable to the Riggs acquisition.

• Average total deposits increased $7.6 billion, or 16 percent, compared with a year ago, driven by higher certificates of deposit, money market and demand deposit balances, and higher Eurodollar borrowings. The Riggs acquisition accounted for 4 percent of the growth. Compared with a year ago, average interest-bearing deposits increased 17 percent, while average demand and other noninterest-bearing deposits increased 11 percent.

• Noninterest income increased 2 percent compared with a year ago driven by a 33 percent increase in asset management fees and higher fund servicing revenue. These factors were mostly offset by net securities losses compared with gains in the second quarter of 2004, lower gains on institutional loans held for sale, lower trading revenue and lower equity management gains.

• Noninterest expense increased 4 percent compared with the sequential quarter driven by the Riggs acquisition. Apart from the impact of the Riggs and State Street Research & Management (SSRM) acquisitions, expenses were flat compared with the sequential quarter due to disciplined expense control.

• Assets under management at quarter end increased $24 billion, or 6 percent, over the sequential quarter driven primarily by net new business and market appreciation.

• Asset quality remained very strong. The ratio of nonperforming loans to total loans fell to .27 percent from .41 percent a year ago and .29 percent last quarter.

Return on average common equity was 14.34 percent for the quarter compared with 17.41 percent a year ago and 19.17 percent in the first quarter of 2005.

In addition to the Riggs integration, the second quarter of 2005 was impacted by several unusual factors. The company recorded a benefit of $53 million, or $.12 per diluted share, from a loan recovery that resulted from a litigation settlement. This recovery resulted in a credit to the provision for credit losses. Apart from this impact, the provision for credit losses would have been $26 million, an increase of $18 million over the prior quarter primarily resulting from loan growth, including Riggs. The company also recorded a previously announced charge of $.07 per diluted share related to a balance sheet repositioning that resulted in the realization of net securities and other losses of $31 million pre-tax. The quarter’s results were also impacted by a decrease in trading revenue of $37 million pre-tax, or $.08 per diluted share, and a decrease in equity management gains of $20 million pre-tax, or $.05 per diluted share, relative to the first quarter of 2005. For further information regarding the financial impact of the Riggs acquisition, please see page 13 of this news release.

The Consolidated Financial Highlights accompanying this news release include a reconciliation of total earnings for all business segments to consolidated earnings and a reconciliation of net interest income as reported under generally accepted accounting principles (GAAP) to taxable-equivalent net interest income.

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THE ONE PNC INITIATIVE

The One PNC initiative, which began in January, is an ongoing, company-wide review of business practices with goals of enhancing the customer experience and improving the company’s overall efficiency. As a result of this intensive process, the company plans to reorganize its businesses to reduce bureaucracy and to better serve its customer base.

“I am confident that PNC will emerge from this process a much stronger, much more efficient and unified organization,” Mr. Rohr said. “While the One PNC initiative required many difficult decisions, it was necessary that we take dramatic steps to reduce expenses and enhance our revenue growth opportunities. We believe these steps will create powerful operating leverage for PNC and help us provide better customer service.”

The company plans to achieve the $300 million in cost savings through a combination of workforce reduction and other efficiency initiatives. Approximately 3,000 positions will be eliminated, with approximately half of those to be achieved through attrition and elimination of open positions. These changes will result in total implementation costs of approximately $85 million, which will be recorded beginning in the third quarter of 2005 and continuing through 2006.

Plans for enhancing revenue identified through the One PNC initiative include a new correspondent banking initiative through which PNC will offer balance sheet management, treasury management and capital markets services for smaller banks in PNC’s primary geographic footprint, in addition to many others.

Implementation of ideas generated through the One PNC initiative has begun and will continue through the next 24 months, with a majority of the plans to be executed in 2005. The financial benefit of the program is expected to be realized beginning in 2006.

New Corporate Structure

The company’s banking businesses will be reorganized into units comprising consumer and institutional activities in order to increase the span of control and to eliminate layers of management. The consumer business, which will include the consumer and small business banking, wealth management and brokerage businesses, will be led by PNC President Joseph C. Guyaux. The institutional business, which will include middle market and corporate finance, business credit, real estate finance, capital markets and leasing, will be led by Vice Chairman William S. Demchak. Mr. Demchak will continue to oversee the company’s asset and liability management and equity management activities. Richard J. Johnson, who is currently the director of finance, will succeed Mr. Demchak as chief financial officer. Messrs. Demchak, Guyaux and Johnson will report to Mr. Rohr. These changes will take effect following the filing of the company’s second quarter 2005 Form 10-Q. To read biographies of these PNC leaders, please visit PNC’s corporate website at www.pnc.com.

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BUSINESS SEGMENT RESULTS

Banking Businesses

Regional Community Banking

Regional Community Banking earned $137 million for the quarter compared with $125 million a year ago and $121 million for the first quarter of 2005. The 10 percent increase over the second quarter of 2004 and 13 percent increase over the first quarter of 2005 were driven by continued customer and balance sheet growth and a sustained focus on expense management.

Regional Community Banking results in the second quarter were highlighted by:

• Customer growth continued. Consumer and small business checking relationships grew by a net 99,000 compared with March 2005 due to the Riggs acquisition as well as strong new customer acquisition and retention. Excluding the impact of the Riggs acquisition, total consumer and small business checking relationships increased 5 percent over the past year.

• Average loan balances increased $1.3 billion, or 7 percent, over the previous quarter, and $2.6 billion, or 15 percent over a year ago. The Riggs acquisition accounted for the majority of the growth over last quarter, while ongoing success in small business and home equity lending contributed to the growth in both periods.

• Average deposit balances increased $1.7 billion, or 4 percent, over the previous quarter and $3.2 billion, or 9 percent, over the prior year. The Riggs acquisition accounted for the majority of the growth over the previous quarter.

• Noninterest expenses increased $9 million compared with the second quarter of 2004 and $17 million over the sequential quarter. Excluding the addition of $14 million in ongoing Riggs expenses, noninterest expense was lower than last year’s second quarter and relatively unchanged compared with the first quarter of 2005. For the first six months of 2005, Regional Community Banking’s efficiency ratio has improved 300 basis points over the same period of 2004.

• The Riggs acquisition added 51 branches and 144 ATMs. The networks now total 825 branches and 3,788 ATMs.

• Credit quality remained strong. The increased provision for credit losses was attributable primarily to growth in the small business loan portfolio.

Wholesale Banking

Wholesale Banking earned $144 million in the second quarter, compared with $113 million for the same period a year ago and $110 million for the first quarter of 2005. The higher earnings compared with both prior periods reflected a negative provision for credit losses of $48 million as a result of a $53 million loan recovery, compared with an $8 million provision in the second quarter of 2004 and a negative provision of $4 million in the first quarter of 2005. In addition to the provision benefit, the higher earnings compared with the sequential quarter were driven by increases in taxable-equivalent net interest income and net gains on sales of commercial mortgages, partially offset by lower income from capital markets activity. In the comparison with a year ago, the provision benefit and an increase in taxable-equivalent net interest income were partially offset by lower net gains on institutional loans held for sale.

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Wholesale Banking results in the second quarter were highlighted by:

• Average loan balances increased $1.4 billion, or 8 percent, over the previous quarter and $2.6 billion, or 16 percent, over a year ago. The increases were driven by continued strong customer demand and the Riggs acquisition.

• Average deposits increased $2.2 billion, or 31 percent, compared with the year-earlier period. The increase was driven by sales of treasury management products, a larger commercial mortgage servicing portfolio, and strong liquidity positions within our customer base.

• Taxable-equivalent net interest income increased $11 million compared with the year ago period and $6 million compared with the prior quarter as a result of higher loan and deposit balances.

• Noninterest expense was essentially flat compared with the sequential quarter due to disciplined expense control.

PNC Advisors

PNC Advisors earned $25 million for the second quarter of 2005 compared with $27 million a year ago and $28 million for the first quarter of 2005. The lower earnings compared with a year ago reflected higher expenses associated with various one-time items partially offset by higher investment management revenue and net interest income. The lower earnings compared with the sequential quarter resulted from higher expenses associated with various one-time items. Average consumer loans outstanding at PNC Advisors increased 18 percent and average deposits increased 6 percent compared with the second quarter of 2004. These increases reflected the success of our local, relationship-based sales initiatives.

Assets under management at PNC Advisors totaled $50 billion at June 30, 2005 compared with $49 billion at June 30, 2004 and March 31, 2005.

Asset Management and Processing Businesses

BlackRock

BlackRock earned $53 million for the quarter compared with $48 million a year ago and $47 million for the first quarter of 2005. The higher earnings compared with both prior periods were primarily due to higher advisory fees driven by a growing base of assets under management. Total revenue reached a record $271 million.

Assets under management at BlackRock increased to a record $414 billion at June 30, 2005 compared with $391 billion at March 31, 2005 primarily driven by new business and market appreciation.

BlackRock is approximately 70 percent owned by PNC and is consolidated into PNC’s financial statements. Accordingly, approximately 30 percent of BlackRock’s earnings are recognized as minority interest expense in the Corporation’s consolidated income statement and are reflected on a separate line in the Business Earnings table in the Consolidated Financial Highlights.

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PFPC

PFPC earned $24 million for the quarter compared with $17 million a year ago and $23 million for the first quarter of 2005. The higher earnings compared with the year earlier period were attributable to improved operating leverage and strong performances from custody services, securities lending, managed account services and offshore operations, as well as reduced intercompany debt financing costs. Fund servicing revenue increased 11 percent compared with a year ago. Earnings for the second quarter of 2004 included a $3 million after-tax benefit from the accretion of a discounted client contract liability, which ended in May 2004. Earnings for the first quarter of 2005 reflected a $6 million after-tax gain related to the resolution of a client contract dispute offset by a $5 million after-tax charge related to PFPC’s prepayment of intercompany debt.

PFPC provided accounting/administration services for $766 billion of net fund assets and provided custody services for $462 billion of fund assets at June 30, 2005. Increases in these statistics over a year ago reflected new business and asset inflows from existing customers. Total fund assets serviced by PFPC were $1.9 trillion at June 30, 2005 compared with $1.6 trillion a year earlier.

“Other”

The “Other” category includes asset and liability management activities, related net securities gains or losses, equity management activities, differences between business segment performance reporting and financial statement (GAAP) reporting, corporate overhead and intercompany eliminations. A net loss of $85 million was reported in “Other” for the quarter compared with a net loss of $12 million a year ago and earnings of $39 million last quarter. Second quarter 2005 results included the impact of the Riggs integration costs of $19 million after-tax. The higher loss compared with the second quarter of 2004 also reflected $26 million in net securities losses compared with $14 million in net securities gains a year ago, lower equity management gains and lower trading revenue. First quarter 2005 results included a benefit of $45 million arising from the reversal of a deferred tax liability related to the transfer of PNC’s ownership in BlackRock from PNC Bank, N.A. to our intermediate bank holding company.

CONSOLIDATED REVENUE REVIEW

Taxable-equivalent net interest income totaled $541 million for the quarter compared with $485 million a year ago and $512 million in the first quarter of 2005. The increases over both prior periods resulted from higher income associated with increased interest-earning assets partially offset by higher costs of deposits. The net interest margin in the second quarter was 3.00 percent compared with 3.18 percent a year ago and 3.02 percent last quarter. The decrease in net interest margin compared with the second quarter of 2004 resulted from narrower interest rate spreads caused by lower margins earned on loans, higher costs of deposits and higher average trading account balances. These factors were partially offset by a higher contribution from noninterest-bearing funding sources.

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Noninterest income totaled $925 million for the second quarter compared with $910 million a year ago and $973 million last quarter. The decrease compared with the sequential quarter resulted primarily from lower trading revenues, lower equity management gains and higher net securities losses. These factors were partially offset by higher asset management fees, higher consumer-related fees and higher gains on sales of commercial mortgages. The increase compared with a year ago resulted from higher asset management, fund servicing and consumer-related fees, which were mostly offset by net securities losses compared with net securities gains, lower equity management gains, lower trading revenue and lower net gains on institutional loans held for sale.

CONSOLIDATED EXPENSE REVIEW

Noninterest expense totaled $1.04 billion for the quarter compared with $.91 billion a year ago and $1.00 billion for the sequential quarter. The increases over both prior periods were driven by the addition of Riggs and SSRM. Apart from the impact of the acquisitions, noninterest expenses were essentially unchanged compared with the sequential quarter due to disciplined expense control.

CONSOLIDATED BALANCE SHEET REVIEW

Total assets were $90.7 billion at June 30, 2005 compared with $73.1 billion a year ago and $83.4 billion at March 31, 2005. The increases in assets compared with both prior periods reflected increases in loan and securities balances, in part due to the Riggs acquisition.

Average total loans of $47.1 billion for the quarter increased $7.1 billion over a year ago and $3.2 billion over the sequential quarter. The increases were driven by continued improvements in market loan demand and targeted sales efforts across our banking businesses, as well as the Riggs acquisition.

Average total securities balances for the quarter increased $2.0 billion compared with the previous quarter primarily due to the Riggs acquisition.

Average deposits of $56.6 billion for the quarter increased $7.6 billion over a year ago and $3.3 billion over the sequential quarter. The increase compared with the prior quarter was driven by the Riggs acquisition and continued customer growth. The increase compared with a year ago was driven by higher certificates of deposit, money market and demand deposit balances, as well as higher Eurodollar borrowings and the Riggs acquisition.

During the second quarter of 2005, the company issued 6.6 million shares for the acquisition of Riggs and repurchased .3 million common shares at an average cost of $53.84 per share. The impact on PNC’s capital of the Riggs and SSRM acquisitions has restricted share repurchases and will continue to do so over the next several quarters.

ASSET QUALITY REVIEW

Overall asset quality remained strong due to our continued focus on lending that meets our risk-reward parameters. The provision for credit losses for the quarter was a credit of $27 million compared with a charge of $8 million a year ago and for the sequential quarter. The decrease in the provision despite growth in loan balances compared with both prior periods was attributable to the $53 million loan recovery. Apart from this impact, the provision increased compared with both prior periods due to increases in loans.

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Net recoveries were $38 million for the quarter compared with net charge-offs of $26 million a year ago and $12 million last quarter. Excluding the large loan recovery, second quarter 2005 net charge-offs were $15 million.

CONFERENCE CALL AND SUPPLEMENTARY FINANCIAL INFORMATION

PNC Chairman and Chief Executive Officer James E. Rohr and Vice Chairman and Chief Financial Officer William S. Demchak will hold a conference call for investors today at 4:30 p.m. Eastern Time regarding the topics addressed in this release and the related financial supplement. Investors should call five to 10 minutes before the start of the conference call at 800-990-2718 (domestic) or 706-643-0187 (international). A taped replay of the call will be available for one week at 800-642-1687 (domestic) and 706-645-9291 (international); enter conference ID 7411123. A slide presentation to accompany the conference call remarks may be found on PNC’s website at www.pnc.com under “For Investors.”

In addition, internet access to the call (listen-only) and to PNC’s second quarter 2005 earnings release and supplementary financial information will be available on PNC’s website at www.pnc.com under “For Investors.” A replay of the webcast will be available on PNC’s website for 30 days.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

We make statements in this news release and in the conference call regarding this news release, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. We do not assume any duty and do not undertake to update our forward-looking statements. Actual results or future events could differ, possibly materially, from those that we anticipated in our forward-looking statements, and future results could differ materially from our historical performance.

In addition to factors that we have disclosed in our 2004 annual report on Form 10-K, our first quarter 2005 report on Form 10-Q, and in other reports that we file with the SEC (accessible on the SEC’s website at www.sec.gov and on or through PNC’s corporate website at www.pnc.com) and those that we may discuss elsewhere in this news release, PNC’s forward-looking statements are subject to, among others, the following risks and uncertainties, which could cause actual results or future events to differ materially from those that we anticipated in our forward-looking statements or from our historical performance:

• changes in political, economic or industry conditions, the interest rate environment, or the financial and capital markets (including as a result of actions of the Federal Reserve Board affecting interest rates, the money supply, or otherwise reflecting changes in monetary policy), which could affect: (a) credit quality and the extent of our credit losses; (b) the extent of funding of our unfunded loan commitments and letters of credit; (c) our allowances for loan and lease losses and unfunded loan commitments and letters of credit; (d) demand for our credit or fee-based products and services; (e) our net interest income; (f) the value of assets under management and assets serviced, of private equity investments, of other debt and equity investments, of loans held for sale, or of other on-balance sheet or off-balance sheet assets; or (g) the availability and terms of funding necessary to meet our liquidity needs;

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• the impact on us of legal and regulatory developments, including the following: (a) the resolution of legal proceedings or regulatory and other governmental inquiries; (b) increased litigation risk from recent regulatory and other governmental developments; (c) the results of the regulatory examination process, our failure to satisfy the requirements of agreements with governmental agencies, and regulators’ future use of supervisory and enforcement tools; (d) legislative and regulatory reforms, including changes to tax laws; and (e) changes in accounting policies and principles, with the impact of any such developments possibly affecting our ability to operate our businesses or our financial condition or results of operations or our reputation, which in turn could have an impact on such matters as business generation and retention, our ability to attract and retain management, liquidity and funding;

• the impact on us of changes in the nature and extent of our competition;

• the introduction, withdrawal, success and timing of our business initiatives and strategies;

• customer acceptance of our products and services, and our customers’ borrowing, repayment, investment and deposit practices;

• the impact on us of changes in the extent of customer or counterparty delinquencies, bankruptcies or defaults, which could affect, among other things, credit and asset quality risk and our provision for credit losses;

• the ability to identify and effectively manage risks inherent in our businesses;

• how we choose to redeploy available capital, including the extent and timing of any share repurchases and acquisitions or other investments in our businesses;

• the impact, extent and timing of technological changes, the adequacy of intellectual property protection, and costs associated with obtaining rights in intellectual property claimed by others;

• the timing and pricing of any sales of loans or other financial assets held for sale;

• our ability to obtain desirable levels of insurance and to successfully submit claims under applicable insurance policies;

• the relative and absolute investment performance of assets under management; and

• the extent of terrorist activities and international hostilities, increases or continuations of which may adversely affect the economy and financial and capital markets generally or us specifically.

Our future results are likely to be affected significantly by the results of the implementation of our One PNC initiative, as discussed in this news release. Generally, the amounts of our anticipated cost savings and revenue enhancements are based to some extent on estimates and assumptions regarding future business performance and expenses, and these estimates and assumptions may prove to be inaccurate in some respects. Some or all of the above factors may cause the anticipated expense savings and revenue enhancements from that initiative not to be achieved in their entirety, not to be accomplished within the expected time frame, or to result in implementation charges beyond those currently contemplated or some other unanticipated adverse impact. Furthermore, the implementation of cost savings ideas may have unintended impacts on our ability to attract and retain business and customers, while revenue enhancement ideas may not be successful in the marketplace or may result in unintended costs. Assumed attrition required to achieve workforce reductions may not come in the right places or at the right times to meet planned goals.

In addition, we grow our business from time to time by acquiring other financial services companies. Acquisitions in general present us with a number of risks and uncertainties related both to the acquisition transactions themselves and to the integration of the acquired businesses into PNC after closing. In particular, acquisitions may be substantially more expensive to complete (including the integration of the acquired company) and the anticipated benefits, including anticipated cost savings and strategic gains, may be significantly harder or take longer to achieve than expected. As a regulated financial institution, our pursuit of attractive acquisition opportunities could be negatively impacted due to regulatory delays or other regulatory issues. Regulatory and/or legal issues of an acquired business may cause reputational harm to PNC following the acquisition and integration of the acquired business into ours and may result in additional future costs and expenses arising as a result of those issues. Recent acquisitions, including our acquisition of Riggs National Corporation, continue to present the integration and other post-closing risks and uncertainties described above.

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You can find additional information on the foregoing risks and uncertainties and additional factors that could affect the results anticipated in our forward-looking statements or from our historical performance in the reports that we file with the SEC. You can access our SEC reports on the SEC’s website at www.sec.gov and on or through our corporate website at www.pnc.com.

Also, risks and uncertainties that could affect the results anticipated in forward-looking statements or from historical performance relating to our majority-owned subsidiary BlackRock, Inc. are discussed in more detail in BlackRock’s filings with the SEC, accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com.

The PNC Financial Services Group, Inc. is one of the nation’s largest diversified financial services organizations, providing consumer and business banking; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management; asset management and global fund services.

[TABULAR MATERIAL FOLLOWS]

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Consolidated Financial Highlights

The PNC Financial Services Group, Inc.

	For the three months ended									For the six months ended
Dollars in millions, except per share data Unaudited	June 30 2005			March 31 2005			June 30 2004			June 30 2005			June 30 2004
FINANCIAL PERFORMANCE
Revenue
Net interest income (taxable-equivalent basis) (a)	$	541		$	512		$	485		$	1,053		$	982
Noninterest income		925			973			910			1,898			1,821
Total revenue	$	1,466		$	1,485		$	1,395		$	2,951		$	2,803
Net income	$	282		$	354		$	304		$	636		$	632
Diluted earnings per common share	$	.98		$	1.24		$	1.07		$	2.22		$	2.22
Cash dividends declared per common share	$	.50		$	.50		$	.50		$	1.00		$	1.00
SELECTED RATIOS
Net interest margin		3.00	%		3.02	%		3.18	%		3.01	%		3.24	%
Noninterest income to total revenue (b)		63			66			65			65			65
Efficiency (C)		71			68			65			69			65
Return on
Average common shareholders’ equity		14.34	%		19.17	%		17.41	%		16.68	%		18.13	%
Average assets		1.29			1.72			1.66			1.50			1.73

Certain prior period amounts included in these Consolidated Financial Highlights have been reclassified to conform to the current period presentation.

(a) 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 a taxable investment. To provide more meaningful comparisons of yields and margins for all earning assets, we have increased the interest income earned on tax-exempt assets to make it fully equivalent to interest income on other taxable investments.

The following is a reconciliation of net interest income as reported in the Consolidated Income Statement to net interest income on a taxable-equivalent basis (in millions):

	For the three months ended						For the six months ended
	June 30 2005		March 31 2005		June 30 2004		June 30 2005		June 30 2004
Net interest income, GAAP basis	$	534	$	506	$	481	$	1,040	$	975
Taxable-equivalent adjustment		7		6		4		13		7
Net interest income, taxable-equivalent basis	$	541	$	512	$	485	$	1,053	$	982

(b) Calculated as noninterest income divided by the sum of net interest income and noninterest income.

(c) Calculated as noninterest expense divided by the sum of net interest income and noninterest income.

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Consolidated Financial Highlights

The PNC Financial Services Group, Inc.

	For the three months ended									For the six months ended
In millions Unaudited	June 30 2005			March 31 2005			June 30 2004			June 30 2005			June 30 2004
BUSINESS EARNINGS SUMMARY AND RECONCILIATION     TO TOTAL CONSOLIDATED RESULTS (a)
Banking businesses
Regional Community Banking	$	137		$	121		$	125		$	258		$	227
Wholesale Banking		144			110			113			254			235
PNC Advisors		25			28			27			53			58
Total banking businesses		306			259			265			565			520
Asset management and processing businesses
BlackRock		53			47			48			100			103
PFPC		24			23			17			47			33
Total asset management and processing businesses		77			70			65			147			136
Total business segment earnings		383			329			330			712			656
Minority interest in income of BlackRock		(16	)		(14	)		(14	)		(30	)		(30	)
Other		(85	)		39			(12	)		(46	)		6
Total consolidated	$	282		$	354		$	304		$	636		$	632

Dollars in millions, except per share data Unaudited	June 30 2005			March 31 2005			June 30 2004
BALANCE SHEET DATA
Assets	$	90,738		$	83,359		$	73,119
Loans, net of unearned income		49,317			44,674			40,835
Allowance for loan and lease losses		628			600			593
Securities		20,437			18,449			14,954
Loans held for sale		2,275			2,067			1,457
Deposits		58,673			55,169			49,994
Borrowed funds		18,206			14,514			10,937
Allowance for unfunded loan commitments and letters of credit		84			78			84
Shareholders’ equity		8,243			7,579			7,064
Common shareholders’ equity		8,235			7,571			7,056
Book value per common share		28.35			26.78			25.01
Common shares outstanding (millions)		290			283			282
Loans to deposits		84	%		81	%		82	%
ASSETS UNDER MANAGEMENT (billions)	$	456		$	432		$	350
FUND ASSETS SERVICED (billions)
Accounting/administration net assets	$	766		$	745		$	665
Custody assets		462			462			416
CAPITAL RATIOS
Tier 1 Risk-based (b)		8.4	%		8.7	%		9.1	%
Total Risk-based (b)		11.9			12.6			12.9
Leverage (b)		7.3			7.3			7.7
Tangible common (c)		5.1			5.3			5.6
Common shareholders’ equity to assets		9.08			9.08			9.65
ASSET QUALITY RATIOS
Nonperforming assets to loans, loans held for sale and foreclosed assets		.32	%		.35	%		.49	%
Nonperforming loans to loans		.27			.29			.41
Net charge-offs to average loans (for the three months ended) (d)		(.32	)		.11			.26
Allowance for loan and lease losses to loans		1.27			1.34			1.45
Allowance for loan and lease losses to nonperforming loans		476			458			351

(a) See the Review of Businesses section of Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2004 (2004 Form 10-K) and of our Quarterly Report on Form 10-Q for the first quarter of 2005 for additional information regarding presentation of results for our business segments. Our business segment information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses change.

(b) Estimated for June 30, 2005.

(c) Common shareholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights) divided by assets less goodwill and other intangible assets (excluding mortgage servicing rights).

(d) This ratio reflects the impact of a $53 million loan recovery during the second quarter of 2005. Excluding the impact of this recovery, the ratio of net charge-offs to average loans for the second quarter of 2005 would have been .13%.

12

Consolidated Financial Highlights

The PNC Financial Services Group, Inc.

Impact of Riggs National Corporation (Riggs) Acquisition on Consolidated Results

In millions

Unaudited

Income Statement Data

				Riggs
For the three months ended June 30, 2005	PNC Excluding Riggs			Ongoing Operations			Integration Costs			Consolidated PNC
Net interest income (taxable-equivalent basis)	$	524		$	17					$	541
Noninterest income		917			8						925
Provision for credit losses		(32	)				$	5			(27	)
Total noninterest expense		998			23			15			1,036
Income taxes		159			1			(1	)(a)		159
Net income (loss)		300			1			(19	)		282
Diluted earnings (loss) per share impact	$	1.06		$	(.01	)(b)	$	(.07	)	$	.98

(a) Includes deferred state income taxes of approximately $6 million, net of federal income tax benefit, established for PNC.

(b) Reflects the dilutive impact of 6.6 million additional common shares issued to acquire Riggs.

Period-end Balance Sheet Data As of June 30, 2005	PNC Excluding Riggs			Riggs		Consolidated PNC
Loans
Commercial lending	$	25,265		$	1,242	$	26,507
Consumer		16,107			463		16,570
Residential mortgages		5,404			1,104		6,508
Other, including total unearned income		(292	)		24		(268	)
Total loans, net of unearned income	$	46,484		$	2,833	$	49,317
Deposits
Interest-bearing	$	42,233		$	2,689	$	44,922
Noninterest-bearing		12,972			779		13,751
Total deposits	$	55,205		$	3,468	$	58,673
Average Balance Sheet Data For the three months ended June 30, 2005
Average loans, net of unearned income
Commercial lending	$	23,931		$	641	$	24,572
Consumer		15,944			251		16,195
Residential mortgages		5,157			585		5,742
Other		625			2		627
Total average loans, net of unearned income	$	45,657		$	1,479	$	47,136
Average deposits
Interest-bearing	$	42,231		$	1,419	$	43,650
Demand and other noninterest-bearing		12,570			417		12,987
Total average deposits	$	54,801		$	1,836	$	56,637

13

EX-99.2

Exhibit 99.2

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2005

UNAUDITED

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

SECOND QUARTER 2005

UNAUDITED

	Page
Consolidated Income Statement	1
Consolidated Balance Sheet	2
Capital Ratios and Asset Quality Ratios	2
Results of Businesses
Summary and Reconciliation to Total Consolidated Results	3
Banking Businesses
Regional Community Banking	4
Wholesale Banking	5
PNC Advisors	6
Asset Management and Processing Businesses
BlackRock	7
PFPC	8
Details of Net Interest Income, Net Interest Margin, and Trading Revenue	9
Details of Noninterest Income, Noninterest Expense, and Effective Tax Rate	10
Efficiency Ratios	11
Average Consolidated Balance Sheet and Supplemental Average Balance Sheet Information	12-13
Details of Loans and Lending Statistics	14
Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and Net Unfunded Commitments	15
Details of Nonperforming Assets	16-17
Glossary of Terms	18-20
Business Segment Products and Services	21

The information contained in this Financial Supplement is preliminary, unaudited and based on data available at July 19, 2005. We have reclassified certain prior period amounts included in this Financial Supplement to be consistent with the current period presentation. 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 SEC filings.

The average full-time equivalent employee (FTE) statistics disclosed in this Financial Supplement for each business segment reflect staff directly employed by the respective business segment and exclude corporate and shared services employees.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)

For the three months ended - in millions, except per share data	June 30 2005			March 31 2005			December 31 2004		September 30 2004			June 30 2004
Interest Income
Loans and fees on loans	$	646		$	578		$	547	$	516		$	490
Securities available for sale and held to maturity		199			173			154		139			130
Other		56			53			42		30			38
Total interest income		901			804			743		685			658
Interest Expense
Deposits		224			182			152		121			107
Borrowed funds		143			116			88		73			70
Total interest expense		367			298			240		194			177
Net interest income		534			506			503		491			481
Provision for credit losses		(27	)		8			19		13			8
Net interest income less provision for credit losses		561			498			484		478			473
Noninterest Income
Asset management		334			314			256		239			252
Fund servicing		219			220			209		204			200
Service charges on deposits		67			59			65		65			63
Brokerage		57			55			53		52			56
Consumer services		74			66			68		66			67
Corporate services		117			107			120		100			128
Equity management gains		12			32			9		16			35
Net securities gains (losses)		(26	)		(9	)		10		16			14
Other		71			129			114		80			95
Total noninterest income		925			973			904		838			910
Noninterest Expense
Compensation		481			479			452		500			414
Employee benefits		86			83			82		76			77
Net occupancy		72			73			64		68			67
Equipment		74			74			74		72			70
Marketing		25			20			24		19			24
Other		298			270			253		246			258
Total noninterest expense		1,036			999			949		981			910
Income before minority and noncontrolling interests and income taxes		450			472			439		335			473
Minority and noncontrolling interests in income (loss) of consolidated entities		9			6			5		(13	)		11
Income taxes		159			112			127		90			158
Net income	$	282		$	354		$	307	$	258		$	304
Earnings Per Common Share
Basic	$	.99		$	1.26		$	1.09	$	.92		$	1.08
Diluted	$	.98		$	1.24		$	1.08	$	.91		$	1.07
Average Common Shares Outstanding
Basic		285			281			281		281			281
Diluted		288			284			283		283			283

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)

In millions, except par value	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Assets
Cash and due from banks	$	3,442		$	2,908		$	3,230		$	3,005		$	3,065
Federal funds sold and resale agreements		89			1,252			1,635			1,154			1,096
Other short-term investments, including trading securities		2,203			2,354			1,848			1,801			1,335
Loans held for sale		2,275			2,067			1,670			1,582			1,457
Securities available for sale and held to maturity		20,437			18,449			16,761			16,824			14,954
Loans, net of unearned income of $847, $872, $902, $931 and $923		49,317			44,674			43,495			42,480			40,835
Allowance for loan and lease losses		(628	)		(600	)		(607	)		(581	)		(593	)
Net loans		48,689			44,074			42,888			41,899			40,242
Goodwill		3,416			2,976			3,001			3,007			2,978
Other intangible assets		700			613			354			348			351
Other		9,487			8,666			8,336			7,678			7,641
Total assets	$	90,738		$	83,359		$	79,723		$	77,298		$	73,119
Liabilities
Deposits
Noninterest-bearing	$	13,751		$	12,808		$	12,915		$	12,461		$	12,246
Interest-bearing		44,922			42,361			40,354			38,701			37,748
Total deposits		58,673			55,169			53,269			51,162			49,994
Borrowed funds
Federal funds purchased		2,701			995			219			2,008			1,069
Repurchase agreements		2,042			2,077			1,376			1,595			1,163
Bank notes and senior debt		2,920			3,662			2,383			2,997			2,796
Subordinated debt		4,105			3,988			4,050			3,569			3,510
Commercial paper		3,998			2,381			2,251			1,805			1,743
Other		2,440			1,411			1,685			945			656
Total borrowed funds		18,206			14,514			11,964			12,919			10,937
Allowance for unfunded loan commitments and letters of credit		84			78			75			96			84
Accrued expenses		2,358			2,288			2,406			2,402			2,221
Other		2,667			3,199			4,032			2,908			2,400
Total liabilities		81,988			75,248			71,746			69,487			65,636
Minority and noncontrolling interests in consolidated entities		507			532			504			499			419
Shareholders’ Equity
Preferred stock (a)
Common stock - $5 par value
Authorized 800 shares, issued 353 shares		1,764			1,764			1,764			1,764			1,764
Capital surplus		1,353			1,275			1,265			1,246			1,235
Retained earnings		8,626			8,485			8,273			8,107			7,991
Deferred compensation expense		(70	)		(42	)		(51	)		(52	)		(54	)
Accumulated other comprehensive loss		(41	)		(175	)		(54	)		(25	)		(139	)
Common stock held in treasury at cost: 62, 70, 70, 70 and 71 shares		(3,389	)		(3,728	)		(3,724	)		(3,728	)		(3,733	)
Total shareholders’ equity		8,243			7,579			7,473			7,312			7,064
Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	90,738		$	83,359		$	79,723		$	77,298		$	73,119
CAPITAL RATIOS
Tier 1 Risk-based (b)		8.4	%		8.7	%		9.0	%		9.0	%		9.1	%
Total Risk-based (b)		11.9			12.6			13.0			12.5			12.9
Leverage (b)		7.3			7.3			7.6			7.7			7.7
Tangible common		5.1			5.3			5.7			5.6			5.6
Common shareholders’ equity to assets		9.08			9.08			9.36			9.45			9.65
ASSET QUALITY RATIOS
Nonperforming assets to loans, loans held for sale and foreclosed assets		.32	%		.35	%		.39	%		.42	%		.49	%
Nonperforming loans to loans		.27			.29			.33			.35			.41
Net charge-offs to average loans (For the three months ended) (c)		(.32	)		.11			.13			.12			.26
Allowance for loan and lease losses to loans		1.27			1.34			1.40			1.37			1.45
Allowance for loan and lease losses to nonperforming loans		476			458			424			393			351

(a) Less than $.5 million at each date.

(b) Estimated for June 30, 2005.

(c) This ratio for the three months ended June 30, 2005 reflects the impact of a $53 million loan recovery during that quarter. Excluding the impact of this recovery, the ratio of net charge-offs to average loans for the second quarter of 2005 would have been .13%.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Results of Businesses - Summary and Reconciliation to Total Consolidated Results (Unaudited) (a)

Three months ended – dollars in millions

Earnings

	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Banking businesses
Regional Community Banking	$	137		$	121		$	143		$	134		$	125
Wholesale Banking		144			110			108			100			113
PNC Advisors		25			28			24			24			27
Total banking businesses		306			259			275			258			265
Asset management and processing businesses
BlackRock (b)		53			47			50			(10	)		48
PFPC		24			23			20			17			17
Total asset management and processing businesses		77			70			70			7			65
Total business segment earnings		383			329			345			265			330
Minority interest in (income) loss of BlackRock		(16	)		(14	)		(15	)		3			(14	)
Other		(85	)		39			(23	)		(10	)		(12	)
Total consolidated earnings	$	282		$	354		$	307		$	258		$	304
Revenue (c)
	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Banking businesses
Regional Community Banking	$	551		$	506		$	536		$	525		$	511
Wholesale Banking		323			312			333			299			322
PNC Advisors		159			156			154			151			154
Total banking businesses		1,033			974			1,023			975			987
Asset management and processing businesses
BlackRock		271			250			188			171			184
PFPC		221			230			209			203			199
Total asset management and processing businesses		492			480			397			374			383
Total business segment revenue		1,525			1,454			1,420			1,349			1,370
Other		(59	)		31			(7	)		(13	)		25
Total consolidated revenue	$	1,466		$	1,485		$	1,413		$	1,336		$	1,395

(a) See the Review of Businesses section of Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2004 (2004 Form 10-K) and of our Quarterly Report on Form 10-Q for the first quarter of 2005 for additional information regarding presentation of results for our business segments. Our business segment information is presented based on our management accounting practices and our management structure. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses change.

(b) BlackRock results for the third quarter of 2004 reflect a $57 million after-tax impact for BlackRock’s 2002 Long-Term Retention and Incentive Plan (LTIP) charge. Our 2004 Form 10-K has additional information on the LTIP and related charges under Note 22 Stock-Based Compensation Plans in the Notes To Consolidated Financial Statements.

(c) Business segment revenue is presented on a taxable-equivalent basis except for BlackRock and PFPC. BlackRock began reporting revenue on a taxable-equivalent basis in the third quarter of 2004. PFPC revenue for all periods and second quarter 2004 BlackRock revenue is presented on a book (GAAP) basis. 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 a taxable investment. To provide more meaningful comparisons of yields and margins for all earning assets, we have increased the interest income earned on tax-exempt assets to make it fully equivalent to interest income on other taxable investments. The following is a reconciliation of total consolidated revenue on a book (GAAP) basis to total consolidated revenue on a taxable-equivalent basis (in millions):

	June 30 2005		March 31 2005		December 31 2004		September 30 2004		June 30 2004
Total consolidated revenue, book (GAAP) basis	$	1,459	$	1,479	$	1,407	$	1,329	$	1,391
Taxable-equivalent adjustment		7		6		6		7		4
Total consolidated revenue, taxable-equivalent basis	$	1,466	$	1,485	$	1,413	$	1,336	$	1,395

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

Regional Community Banking (Unaudited) (a)

Three months ended Taxable-equivalent basis (a) Dollars in millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
INCOME STATEMENT
Net interest income	$	367		$	341		$	345		$	342		$	340
Noninterest income
Service charges on deposits		65			57			62			63			60
Investment products		29			28			27			27			29
Other		90			80			102			93			82
Total noninterest income		184			165			191			183			171
Total revenue		551			506			536			525			511
Provision for credit losses		16			14			14			13			6
Noninterest expense
Compensation and employee benefits		136			128			136			132			130
Net occupancy and equipment		68			66			63			66			66
Other		112			105			98			102			111
Total noninterest expense		316			299			297			300			307
Pretax earnings		219			193			225			212			198
Income taxes		82			72			82			78			73
Earnings	$	137		$	121		$	143		$	134		$	125
AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	12,278		$	11,863		$	11,652		$	11,283		$	10,734
Indirect		917			892			881			879			836
Other consumer		414			405			464			514			533
Total consumer		13,609			13,160			12,997			12,676			12,103
Commercial		4,599			4,372			4,220			4,113			3,943
Floor plan		1,050			1,013			961			929			1,037
Residential mortgage		1,235			677			708			737			776
Other		24			26			26			25			24
Total loans		20,517			19,248			18,912			18,480			17,883
Goodwill		1,090			991			1,000			1,005			1,005
Loans held for sale		1,455			1,345			1,221			1,238			1,156
Other assets		1,449			1,386			1,443			1,447			1,587
Total assets	$	24,511		$	22,970		$	22,576		$	22,170		$	21,631
Deposits
Noninterest-bearing demand	$	7,048		$	6,715		$	6,883		$	6,712		$	6,464
Interest-bearing demand		7,234			6,996			7,098			6,937			6,916
Money market		12,340			12,046			11,937			12,112			12,465
Total transaction deposits		26,622			25,757			25,918			25,761			25,845
Savings		2,671			2,724			2,727			2,659			2,548
Certificates of deposit		10,726			9,833			9,363			8,775			8,421
Total deposits		40,019			38,314			38,008			37,195			36,814
Other liabilities		130			132			164			185			223
Capital		2,510			2,447			2,420			2,375			2,364
Total funds	$	42,659		$	40,893		$	40,592		$	39,755		$	39,401
PERFORMANCE RATIOS
Return on capital		22	%		20	%		24	%		22	%		21	%
Noninterest income to total revenue		33			33			36			35			33
Efficiency		57			59			55			57			60
OTHER INFORMATION (b)
Nonperforming assets	$	79		$	84		$	91		$	85		$	81
Net charge-offs	$	16		$	14		$	11		$	10		$	10
Annualized net charge-off ratio		.31	%		.29	%		.23	%		.22	%		.22	%
Home equity portfolio credit statistics:
% of first lien positions		51	%		51	%		51	%		51	%		51	%
Weighted average loan-to-value ratios		71	%		71	%		71	%		71	%		71	%
Weighted average FICO scores		719			716			716			717			717
Loans 90 days past due		.19	%		.20	%		.22	%		.22	%		.20	%
Gains on sales of education loans (c)	$	3		$	1		$	13		$	15		$	2
Average FTE staff		10,184			9,886			10,109			10,251			10,254
ATMs		3,788			3,610			3,581			3,555			3,528
Branches		825			770			774			774			775
Consumer and small business checking relationships		1,860,000			1,761,000			1,741,000			1,732,000			1,700,000
Consumer DDA households using online banking		787,000			743,000			711,000			690,000			663,000
% of consumer DDA households using online banking		47	%		47	%		45	%		44	%		43	%
Consumer DDA households using online bill payment		166,000			131,000			112,000			108,000			112,000
% of consumer DDA households using online bill payment		10	%		8	%		7	%		7	%		7	%
Small business deposits
Noninterest-bearing	$	4,267		$	4,086		$	4,203		$	4,067		$	3,908
Interest-bearing		1,478			1,556			1,764			1,574			1,515
Money market		2,774			2,630			2,836			2,788			2,707
Certificates of deposit		353			352			318			304			300

(a) See Notes (a) and (c) on page 3.

(b) Presented as of period-end, except for net charge-offs, annualized net charge-off ratio, home equity portfolio weighted average statistics, gains on sales of education loans, average FTEs and small business deposits.

(c) Included in “ Noninterest income - Other” above.

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Wholesale Banking (Unaudited) (a)

Three months ended Taxable-equivalent basis (a) Dollars in millions except as noted	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
INCOME STATEMENT
Net interest income	$	182		$	176		$	183		$	180		$	171
Noninterest income
Net commercial mortgage banking
Net gains on loan sales		18			9			20			6			14
Servicing and other fees, net of amortization		15			14			12			12			12
Net gains on institutional loans held for sale		2			2			2			5			17
Other		106			111			116			96			108
Noninterest income		141			136			150			119			151
Total revenue		323			312			333			299			322
Provision for credit losses		(48	)		(4	)		9			1			8
Noninterest expense		168			167			181			166			162
Pretax earnings		203			149			143			132			152
Noncontrolling interests in income of consolidated entities		(11	)		(11	)		(11	)		(12	)		(10	)
Income taxes		70			50			46			44			49
Earnings	$	144		$	110		$	108		$	100		$	113
AVERAGE BALANCE SHEET
Loans
Corporate banking (b)	$	10,940		$	10,417		$	10,139		$	9,776		$	9,669
Commercial real estate		2,139			1,807			1,824			1,902			1,934
Commercial - real estate related		2,090			1,782			1,743			1,704			1,465
PNC Business Credit		4,303			4,050			3,976			3,838			3,788
Total loans (b)		19,472			18,056			17,682			17,220			16,856
Loans held for sale		694			598			555			349			493
Other assets		6,014			5,430			4,514			4,010			4,640
Total assets	$	26,180		$	24,084		$	22,751		$	21,579		$	21,989
Deposits	$	9,165		$	8,683		$	8,536		$	7,882		$	6,981
Commercial paper		2,168			2,127			1,954			1,679			1,815
Other liabilities		4,005			3,777			3,395			2,944			3,583
Capital		1,671			1,692			1,590			1,586			1,659
Total funds	$	17,009		$	16,279		$	15,475		$	14,091		$	14,038
PERFORMANCE RATIOS
Return on capital		35	%		26	%		27	%		25	%		27	%
Noninterest income to total revenue		44			44			45			40			47
Efficiency		52			54			54			56			50
COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	105		$	98		$	93		$	89		$	86
Acquisitions/additions		21			14			12			11			11
Repayments/transfers		(7	)		(7	)		(7	)		(7	)		(8	)
End of period	$	119		$	105		$	98		$	93		$	89
OTHER INFORMATION
Consolidated revenue from: (c)
Treasury Management	$	103		$	97		$	99		$	95		$	91
Capital Markets	$	29		$	42		$	44		$	27		$	37
Midland Loan Services	$	29		$	30		$	27		$	30		$	26
Equipment Leasing	$	18		$	18		$	21		$	21		$	21
Total loans (d)	$	20,726		$	18,595		$	17,959		$	17,650		$	17,171
Nonperforming assets (d)	$	77		$	65		$	71		$	82		$	110
Net charge-offs	$	(54	)	$	(2	)	$	3					$	16
Average FTE staff		3,149			3,128			3,129			3,098			3,074
Net carrying amount of commercial mortgage servicing rights (d)	$	276		$	258		$	242		$	229		$	226

(a) See Notes (a) and (c) on page 3.

(b) Includes Market Street Funding Corporation. See Supplemental Average Balance Sheet Information on page 12.

(c) Represent consolidated PNC amounts.

(d) Presented as of period-end.

Page 5

THE PNC FINANCIAL SERVICES GROUP, INC.

PNC Advisors (Unaudited) (a)

Three months ended Taxable-equivalent basis (a) Dollars in millions except as noted	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
INCOME STATEMENT
Net interest income	$	28		$	28		$	28		$	29		$	27
Noninterest income
Investment management and trust		83			81			79			77			79
Brokerage		27			28			28			25			28
Other		21			19			19			20			20
Total noninterest income		131			128			126			122			127
Total revenue		159			156			154			151			154
Provision for credit losses		(1	)					(1	)		1			(2	)
Noninterest expense		120			112			117			112			114
Pretax earnings		40			44			38			38			42
Income taxes		15			16			14			14			15
Earnings	$	25		$	28		$	24		$	24		$	27
AVERAGE BALANCE SHEET
Loans
Consumer	$	1,746		$	1,676		$	1,640		$	1,568		$	1,475
Residential mortgage		92			100			109			118			137
Commercial		409			425			384			412			417
Other		269			277			285			293			303
Total loans		2,516			2,478			2,418			2,391			2,332
Other assets		419			401			420			393			405
Total assets	$	2,935		$	2,879		$	2,838		$	2,784		$	2,737
Deposits	$	2,433		$	2,435		$	2,314		$	2,252		$	2,298
Other liabilities		266			276			299			276			272
Capital		264			301			297			305			301
Total funds	$	2,963		$	3,012		$	2,910		$	2,833		$	2,871
PERFORMANCE RATIOS (b)
Return on capital		38	%		38	%		32	%		31	%		36	%
Noninterest income to total revenue		82			82			82			81			82
ASSETS UNDER ADMINISTRATION (in billions) (c) (d)
Assets under management
Personal	$	41		$	40		$	41		$	39		$	40
Institutional		9			9			9			9			9
Total	$	50		$	49		$	50		$	48		$	49
Asset Type
Equity	$	31		$	30		$	30		$	28		$	29
Fixed income		13			13			14			14			14
Liquidity/Other		6			6			6			6			6
Total	$	50		$	49		$	50		$	48		$	49
Nondiscretionary assets under administration
Personal	$	26		$	29		$	29		$	27		$	27
Institutional		59			63			64			64			64
Total	$	85		$	92		$	93		$	91		$	91
Asset Type
Equity	$	31		$	32		$	32		$	31		$	32
Fixed income		26			32			33			32			33
Liquidity/Other		28			28			28			28			26
Total	$	85		$	92		$	93		$	91		$	91
OTHER INFORMATION (d)
Nonperforming assets	$	5		$	9		$	9		$	10		$	10
Brokerage assets administered (in billions)	$	25		$	24		$	25		$	23		$	23
Full service brokerage offices		75			73			75			75			75
Financial consultants		434			432			436			435			436
Margin loans	$	218		$	249		$	254		$	267		$	268
Average FTE staff		2,843			2,816			2,806			2,791			2,787

(a) See Notes (a) and (c) on page 3.

(b) See page 11 for information regarding efficiency ratios.

(c) Excludes brokerage assets administered.

(d) Presented as of period-end, except for average FTE staff.

Page 6

THE PNC FINANCIAL SERVICES GROUP, INC.

BlackRock (Unaudited) (a)

Three months ended Taxable-equivalent basis (a) Dollars in millions except as noted	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
INCOME STATEMENT
Investment advisory and administrative fees	$	231		$	212		$	163		$	148		$	162
Other income		40			38			25			23			22
Total revenue		271			250			188			171			184
Operating expense		163			161			112			94			113
Operating expense - LTIP charge		16			14			13			91
Fund administration and servicing costs		10			9			7			9			8
Total expense		189			184			132			194			121
Operating income (loss)		82			66			56			(23	)		63
Nonoperating income		5			8			8			7			15
Pretax earnings (loss)		87			74			64			(16	)		78
Minority interest		1						1						4
Income taxes		33			27			13			(6	)		26
Earnings (loss)	$	53		$	47		$	50		$	(10	)	$	48
PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	445		$	444		$	184		$	184		$	186
Other assets		1,062			1,050			961			893			780
Total assets	$	1,507		$	1,494		$	1,145		$	1,077		$	966
Liabilities and minority interest	$	653		$	648		$	377		$	342		$	211
Stockholders’ equity		854			846			768			735			755
Total liabilities and stockholders’ equity	$	1,507		$	1,494		$	1,145		$	1,077		$	966
PERFORMANCE DATA
Return on equity		25	%		23	%		26	%		(5	)%		26	%
Operating margin (b)		37			38			38			32			40
Diluted earnings (loss) per share	$	.80		$	.70		$	.75		$	(.15	)	$	.73
ASSETS UNDER MANAGEMENT (in billions) (period end)
Separate accounts
Fixed income	$	258		$	240		$	216		$	211		$	200
Cash management		8			7			7			8			7
Cash management - securities lending		7			7			7			9			9
Equity		19			19			10			8			9
Alternative investment products		23			19			8			7			6
Total separate accounts		315			292			248			243			231
Mutual funds (c)
Fixed income		26			25			25			24			24
Cash management		60			60			64			51			50
Equity		13			14			5			5			5
Total mutual funds		99			99			94			80			79
Total assets under management	$	414		$	391		$	342		$	323		$	310
OTHER INFORMATION
Average FTE staff		1,509			1,320			1,062			1,063			984
(a)    See Notes (a) and (c) on page 3. (b)    Calculated as operating income, adjusted for the LTIP charges, SSRM acquisition costs, appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans, and the Trepp LLC bonus divided by total revenue less reimbursable property management compensation and fund administration and servicing costs. The following is a reconciliation of this presentation to operating margin calculated on a GAAP basis (operating income divided by total revenue) in millions:

Operating income (loss), GAAP basis	$	82		$	66		$	56		$	(23	)	$	63
Add back: LTIP charge		16			14			13			91
Less: portion of LTIP to be funded by BlackRock		(4	)		(2	)		(2	)		(17	)
Add back: SSRM acquisition costs					9
Add back: appreciation on Rabbi trust assets					2			2						1
Add back: Trepp LLC bonus														7
Operating income, as adjusted	$	94		$	89		$	69		$	51		$	71
Total revenue, GAAP basis	$	271		$	250		$	188		$	171		$	184
Less: reimbursable property management compensation		6			4
Less: fund administration and servicing costs		10			9			7			9			8
Revenue used for operating margin calculation, as reported	$	255		$	237		$	181		$	162		$	176
Operating margin, GAAP basis		30	%		26	%		30	%		(13	)%		34	%
Operating margin, as adjusted		37	%		38	%		38	%		32	%		40	%

We believe that operating margin, as adjusted, is a more relevant indicator of management’s ability to effectively employ BlackRock’s resources. The portion of the LTIP charges associated with awards to be met with the contribution of shares of BlackRock stock currently held by PNC has been excluded from operating income because, exclusive of impact related to LTIP participants’ option to put awarded shares to BlackRock, this non-cash charge will not impact BlackRock’s book value. Appreciation on Rabbi trust assets related to BlackRock’s deferred compensation plans has been excluded because investment performance of these assets has a nominal impact on net income. Reimbursable property management compensation represents compensation and benefits paid to certain BlackRock Realty Advisors, Inc. (“Realty”) personnel. These employees are retained on Realty’s payroll when properties are acquired by Realty’s clients. The related compensation and benefits are fully reimbursed by Realty’s clients and have been excluded from operating margin, as adjusted, because they bear no economic cost to BlackRock. We have excluded fund administration and servicing costs from the operating margin calculation because these costs are a fixed, asset-based expense which can fluctuate based on the discretion of a third party. We have excluded the impact on operating margin of the incentive compensation recognized during the second quarter of 2004 related to the gain on the sale of BlackRock’s interest in Trepp LLC as such expense is not indicative of the ongoing level of incentive compensation for BlackRock.

(c) Includes BlackRock Funds, BlackRock Liquidity Funds, BlackRock Closed End Funds, Short Term Investment Fund and BlackRock Global Series Funds.

Page 7

THE PNC FINANCIAL SERVICES GROUP, INC.

PFPC (Unaudited) (a)

Three months ended Dollars in millions except as noted	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
INCOME STATEMENT
Fund servicing revenue	$	221		$	220		$	209		$	203		$	199
Other revenue					10
Total revenue		221			230			209			203			199
Operating expense		169			173			160			158			158
Amortization (accretion) of other intangibles, net		4			3			4			3			(1	)
Operating income		48			54			45			42			42
Debt financing		10			8			12			14			14
Other nonoperating income (expense) (b)		1			(8	)					1
Pretax earnings		39			38			33			29			28
Income taxes		15			15			13			12			11
Earnings	$	24		$	23		$	20		$	17		$	17
PERIOD-END BALANCE SHEET
Goodwill and other intangible assets	$	1,009		$	1,012		$	1,015		$	1,019		$	1,023
Other assets		1,074			896			1,557			1,049			1,014
Total assets	$	2,083		$	1,908		$	2,572		$	2,068		$	2,037
Debt financing	$	987		$	1,017		$	1,050		$	1,075		$	1,118
Other liabilities		778			598			1,253			747			690
Capital		318			293			269			246			229
Total funds	$	2,083		$	1,908		$	2,572		$	2,068		$	2,037
PERFORMANCE RATIOS
Return on average capital		33	%		35	%		30	%		26	%		26	%
Operating margin (c)		22			23			22			21			21
SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)
Domestic	$	699		$	680		$	660		$	609		$	612
Foreign (d)		67			65			61			58			53
Total	$	766		$	745		$	721		$	667		$	665
Asset type
Money market	$	333		$	340		$	341		$	322		$	326
Equity		262			245			230			203			200
Fixed income		111			107			101			97			94
Other		60			53			49			45			45
Total	$	766		$	745		$	721		$	667		$	665
Custody fund assets (in billions)	$	462		$	462		$	451		$	418		$	416
Shareholder accounts (in millions)
Transfer agency		20			20			21			21			21
Subaccounting		38			39			36			34			34
Total		58			59			57			55			55
OTHER INFORMATION
Average FTE staff		4,789			4,833			4,659			4,614			4,816

(a) See Note (a) on page 3.

(b) Net of nonoperating expense.

(c) Operating income divided by total revenue.

(d) Represents net assets serviced offshore.

Page 8

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Income, Net Interest Margin, and Trading Revenue (Unaudited)

Taxable-equivalent basis

Net Interest Income

	For the quarter ended
In millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Interest income
Loans and fees on loans	$	649		$	580		$	549		$	518		$	491
Securities available for sale and held to maturity		200			174			155			141			131
Other		59			56			45			33			40
Total interest income		908			810			749			692			662
Interest expense
Deposits		224			182			152			121			107
Borrowed funds		143			116			88			73			70
Total interest expense		367			298			240			194			177
Net interest income (a)	$	541		$	512		$	509		$	498		$	485
Net Interest Margin
	For the quarter ended
	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Average yields/rates
Yield on interest-earning assets
Loans and fees on loans		5.48	%		5.30	%		5.04	%		4.89	%		4.89	%
Securities available for sale and held to maturity		4.24			4.13			3.85			3.67			3.33
Other		4.01			3.14			3.25			2.89			3.07
Total yield on interest-earning assets		5.03			4.79			4.59			4.44			4.34
Rate on interest-bearing liabilities
Deposits		2.05			1.80			1.52			1.27			1.15
Borrowed funds		3.48			3.09			2.76			2.45			2.21
Total rate on interest-bearing liabilities		2.44			2.15			1.82			1.55			1.42
Interest rate spread		2.59			2.64			2.77			2.89			2.92
Impact of noninterest-bearing sources		.41			.38			.35			.30			.26
Net interest margin		3.00	%		3.02	%		3.12	%		3.19	%		3.18	%
Trading Revenue (b)
	For the quarter ended
In millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Net interest income	$	4		$	2		$	4		$	3		$	4
Other noninterest income		11			50			44			16			30
Total trading revenue	$	15		$	52		$	48		$	19		$	34
Securities underwriting and trading	$	5		$	5		$	23		$	11		$	16
Foreign exchange		9			8			9			8			7
Financial derivatives		1			39			16						11
Total trading revenue	$	15		$	52		$	48		$	19		$	34
(a)    The following is a reconciliation of net interest income as reported in the Consolidated Income Statement to net interest income on a taxable-equivalent basis:
	For the quarter ended
In millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Net interest income, GAAP basis	$	534		$	506		$	503		$	491		$	481
Taxable-equivalent adjustment		7			6			6			7			4
Net interest income, taxable-equivalent basis	$	541		$	512		$	509		$	498		$	485

(b) See pages 12 and 13 for disclosure of average trading assets and liabilities.

Page 9

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Noninterest Income, Noninterest Expense, and Effective Tax Rate (Unaudited)

In millions

Noninterest Income

	For the quarter ended
	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Asset management	$	334		$	314		$	256		$	239		$	252
Fund servicing		219			220			209			204			200
Service charges on deposits		67			59			65			65			63
Brokerage		57			55			53			52			56
Consumer services		74			66			68			66			67
Corporate services		117			107			120			100			128
Equity management gains		12			32			9			16			35
Net securities gains (losses)		(26	)		(9	)		10			16			14
Other (a)		71			129			114			80			95
Total noninterest income	$	925		$	973		$	904		$	838		$	910
Included in “Corporate services” above
Net gains on institutional loans held for sale	$	2		$	2		$	2		$	5		$	17
Net gains on sales of commercial mortgages	$	18		$	9		$	20		$	6		$	14
Included in “Other” above
Gains on sales of education loans	$	3		$	1		$	13		$	15		$	2
Noninterest income to total revenue		63	%		66	%		64	%		63	%		65	%
Noninterest Expense
	For the quarter ended
	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Compensation	$	481		$	479		$	452		$	500		$	414
Employee benefits		86			83			82			76			77
Net occupancy		72			73			64			68			67
Equipment		74			74			74			72			70
Marketing		25			20			24			19			24
Other		298			270			253			246			258
Total noninterest expense	$	1,036		$	999		$	949		$	981		$	910
Included in “Total noninterest expense” above
BlackRock LTIP charges (b)	$	17		$	15		$	14		$	96
Acquisition integration costs (c)	$	15		$	9
Effective tax rate (d)		35.3	%		23.7	%		28.9	%		26.9	%		33.4	%

(a) “Other” also includes the “Other noninterest income” component of trading revenue. See page 9.

(b) Second quarter 2005 charges are comprised of $15 million of compensation expense and $2 million of “Other” noninterest expense. First quarter 2005 charges are comprised of $15 million of compensation expense. Fourth quarter 2004 charges are comprised of $13 million of compensation expense and $1 million of “Other” noninterest expense. Third quarter 2004 charges are comprised of $89 million of compensation expense, $2 million of employee benefits expense and $5 million of “Other” noninterest expense. See our first quarter 2005 Quarterly Report on Form 10-Q for further information on the BlackRock LTIP.

(c) The second quarter 2005 amount is related to our acquisition of Riggs National Corporation and the first quarter 2005 amount is related to BlackRock’s acquisition of SSRM Holdings, Inc.

(d) The second quarter 2005 effective tax rate reflects a $6 million increase in deferred taxes related to the Riggs acquisition.

The first quarter 2005 effective tax rate reflects the $45 million impact of the reversal of certain deferred tax liabilities in connection with the transfer of our ownership interest in BlackRock from PNC Bank, National Association to our intermediate bank holding company, PNC Bancorp, Inc. See our first quarter 2005 Quarterly Report on Form 10-Q for additional information.

The fourth quarter 2004 effective tax rate reflects a $10 million income tax benefit resulting from the release of reserves allocated to BlackRock’s New York City tax liability due to the receipt of a favorable preliminary audit finding for the tax years 1998 through 2000.

The third quarter 2004 effective tax rate reflects a $14 million reduction in income tax expense following our determination that we no longer require an income tax reserve related to bank-owned life insurance. See our third quarter 2004 Quarterly Report on Form 10-Q for additional information.

Page 10

THE PNC FINANCIAL SERVICES GROUP, INC.

Efficiency Ratios (Unaudited)

GAAP and Bank Efficiency Ratios

	For the quarter ended
	June 30 2005		March 31 2005		December 31 2004		September 30 2004		June 30 2004
GAAP basis efficiency ratio (a)	71	%	68	%	67	%	74	%	65	%
Bank efficiency ratio (b)	67	%	63	%	64	%	65	%	63	%

(a) Calculated as noninterest expense divided by the sum of net interest income and noninterest income.

(b) The bank efficiency ratio represents the consolidated (GAAP basis) efficiency ratio excluding the effect of BlackRock, PFPC and Riggs. We believe the disclosure of this bank efficiency ratio is meaningful for investors because it provides a more relevant basis of comparison with other financial institutions that do not have significant asset management and processing businesses. We have excluded the impact of Riggs that we acquired during the second quarter of 2005 due to the impact of nonrecurring acquisition integration costs.

Reconciliation of GAAP amounts with amounts used in the calculation of the bank efficiency ratio:

	For the quarter ended
Dollars in millions	June 30 2005		March 31 2005		December 31 2004		September 30 2004		June 30 2004
PNC total revenue, GAAP basis	$	1,459	$	1,479	$	1,407	$	1,329	$	1,391
Less: BlackRock revenue (c)		275		258		195		177		199
PFPC revenue (c)		211		214		197		190		185
Riggs revenue		25
Revenue, as adjusted	$	948	$	1,007	$	1,015	$	962	$	1,007
PNC noninterest expense, GAAP basis	$	1,036	$	999	$	949	$	981	$	910
Less: BlackRock noninterest expense		189		184		132		194		121
PFPC noninterest expense (c)		172		176		164		161		157
Riggs noninterest expense		38
Noninterest expense, as adjusted	$	637	$	639	$	653	$	626	$	632

(c) These amounts differ from amounts included on pages 7 and 8 of this financial supplement due to the presentation on pages 7 and 8 of BlackRock revenue on a taxable-equivalent basis and classification differences related to BlackRock and PFPC. Note 16 Segment Reporting in our first quarter 2005 Quarterly Report on Form 10-Q provides further details on these differences.

PNC Advisors Efficiency Ratios

	For the quarter ended
	June 30 2005		March 31 2005		December 31 2004		September 30 2004		June 30 2004
Efficiency, GAAP basis (a)	75	%	72	%	76	%	74	%	74	%
Efficiency, as adjusted (b)	68	%	63	%	68	%	66	%	64	%

(a) See (a) in the table above.

(b) Calculated by excluding the impact of brokerage firm activities included within the PNC Advisors business segment. Brokerage firm activities excluded are the principal activities of Hilliard Lyons on a management reporting basis, including client-related brokerage and trading, investment banking and investment management. Industry-wide efficiency measures for brokerage firms and asset management firms differ significantly primarily due to the highly variable compensation structure of brokerage firms. We believe the disclosure of an efficiency ratio for PNC Advisors excluding the impact of these brokerage firm activities is meaningful for investors as it provides a more relevant basis of comparison with other asset management firms.

Reconciliation of GAAP amounts with amounts used in the calculation of the adjusted PNC Advisors efficiency ratio:

	For the quarter ended
Dollars in millions	June 30 2005		March 31 2005		December 31 2004		September 30 2004		June 30 2004
Revenue, GAAP basis	$	159	$	156	$	154	$	151	$	154
Less: brokerage firm activities		53		51		53		47		52
Revenue, as adjusted	$	106	$	105	$	101	$	104	$	102
Noninterest expense, GAAP basis	$	120	$	112	$	117	$	112	$	114
Less: brokerage firm activities		48		46		47		44		48
Noninterest expense, as adjusted	$	72	$	66	$	70	$	68	$	66

Page 11

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited)

Three months ended - in millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Assets
Interest-earning assets
Securities available for sale and held to maturity
Securities available for sale
Mortgage-backed, asset-backed, and other debt	$	11,138		$	9,631		$	8,846		$	8,667		$	8,624
U.S. Treasury and government agencies/corporations		7,406			6,897			6,895			6,288			6,654
State and municipal		171			172			175			216			225
Corporate stocks and other		190			172			188			201			259
Total securities available for sale		18,905			16,872			16,104			15,372			15,762
Securities held to maturity		1						1			2			2
Total securities available for sale and held to maturity		18,906			16,872			16,105			15,374			15,764
Loans, net of unearned income
Commercial		19,259			17,935			17,312			16,915			16,445
Commercial real estate		2,478			2,015			2,080			2,120			2,100
Consumer		16,195			15,641			15,280			14,673			13,968
Residential mortgage		5,742			4,855			4,683			4,354			3,622
Lease financing		2,978			3,041			3,216			3,182			3,437
Other		484			495			502			507			497
Total loans, net of unearned income		47,136			43,982			43,073			41,751			40,069
Loans held for sale		2,152			1,941			1,771			1,578			1,636
Federal funds sold and resale agreements		649			2,249			1,274			1,283			1,896
Other		3,098			2,937			2,302			1,746			1,551
Total interest-earning assets		71,941			67,981			64,525			61,732			60,916
Noninterest-earning assets
Allowance for loan and lease losses		(655	)		(611	)		(582	)		(593	)		(603	)
Cash and due from banks		3,106			2,987			3,038			2,851			2,793
Other assets		13,158			13,005			11,791			11,372			10,762
Total assets	$	87,550		$	83,362		$	78,772		$	75,362		$	73,868
Supplemental Average Balance Sheet Information
Loans excluding conduit	$	45,097		$	41,871		$	41,121		$	40,074		$	38,257
Market Street Funding Corporation conduit		2,039			2,111			1,952			1,677			1,812
Total loans	$	47,136		$	43,982		$	43,073		$	41,751		$	40,069
Trading Assets
Securities (a)	$	1,932		$	1,883		$	1,348		$	1,003		$	740
Resale agreements (b)		411			1,249			184			155			142
Financial derivatives (c)		864			679			668			604			541
Total trading assets	$	3,207		$	3,811		$	2,200		$	1,762		$	1,423

(a) Included in “Interest-earning assets - Other” above.

(b) Included in “Federal funds sold and resale agreements” above.

(c) Included in “Noninterest-earning assets - Other Assets” above.

Page 12

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (Continued)

Three months ended - in millions	June 30 2005		March 31 2005		December 31 2004		September 30 2004		June 30 2004
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities
Interest-bearing deposits
Money market	$	17,482	$	16,562	$	16,328	$	15,916	$	16,027
Demand		8,205		7,965		7,999		7,857		7,878
Savings		2,787		2,831		2,819		2,730		2,595
Retail certificates of deposit		11,215		10,296		9,761		9,100		8,650
Other time		1,484		902		892		825		680
Time deposits in foreign offices		2,477		2,373		1,628		1,561		1,485
Total interest-bearing deposits		43,650		40,929		39,427		37,989		37,315
Borrowed funds
Federal funds purchased		2,506		1,659		1,676		1,940		2,303
Repurchase agreements		2,405		2,306		1,906		1,158		1,508
Bank notes and senior debt		3,288		2,663		2,535		2,709		2,752
Subordinated debt		3,826		3,911		3,476		3,411		3,545
Commercial paper		2,438		2,344		1,947		1,679		1,815
Other		1,867		2,159		1,070		858		633
Total borrowed funds		16,330		15,042		12,610		11,755		12,556
Total interest-bearing liabilities		59,980		55,971		52,037		49,744		49,871
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity
Demand and other noninterest-bearing deposits		12,987		12,432		12,539		12,477		11,681
Allowance for unfunded loan commitments and letters of credit		78		76		96		84		90
Accrued expenses and other liabilities		6,086		6,856		6,283		5,470		4,773
Minority and noncontrolling interests in consolidated entities		526		527		501		466		419
Shareholders’ equity		7,893		7,500		7,316		7,121		7,034
Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	87,550	$	83,362	$	78,772	$	75,362	$	73,868
Supplemental Average Balance Sheet Information
Interest-bearing deposits	$	43,650	$	40,929	$	39,427	$	37,989	$	37,315
Demand and other noninterest-bearing deposits		12,987		12,432		12,539		12,477		11,681
Total deposits	$	56,637	$	53,361	$	51,966	$	50,466	$	48,996
Transaction deposits	$	38,674	$	36,959	$	36,866	$	36,250	$	35,586
Common shareholders’ equity	$	7,885	$	7,492	$	7,308	$	7,113	$	7,026
Trading Liabilities
Securities sold short (a)	$	750	$	1,462	$	401	$	319	$	177
Repurchase agreements and other borrowings (b)		1,078		1,185		479		302		127
Financial derivatives (c)		909		667		664		575		500
Total trading liabilities	$	2,737	$	3,314	$	1,544	$	1,196	$	804

(a) Included in “Borrowed funds - Other” above.

(b) Included in “Repurchase agreements” and “Borrowed funds - Other” above.

(c) Included in “Accrued expenses and other liabilities” above.

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans and Lending Statistics (Unaudited)

Loans

Period ended - in millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Commercial
Retail/wholesale	$	5,295		$	5,236		$	4,961		$	4,739		$	4,580
Manufacturing		4,498			4,327			3,944			3,870			3,861
Other service providers		2,198			1,820			1,787			1,648			1,571
Real estate related		2,520			2,179			2,104			2,096			2,029
Financial services		1,374			1,308			1,145			1,274			1,262
Health care		671			560			560			527			516
Other		3,447			3,043			2,937			2,961			2,894
Total commercial		20,003			18,473			17,438			17,115			16,713
Commercial real estate
Real estate projects		2,030			1,404			1,460			1,513			1,530
Mortgage		806			521			520			527			575
Total commercial real estate		2,836			1,925			1,980			2,040			2,105
Equipment lease financing		3,668			3,719			3,907			3,949			3,818
Total commercial lending		26,507			24,117			23,325			23,104			22,636
Consumer
Home equity		13,531			12,968			12,734			12,377			11,946
Automobile		874			854			836			842			825
Other		2,165			1,953			2,036			1,684			1,676
Total consumer		16,570			15,775			15,606			14,903			14,447
Residential mortgage		6,508			5,007			4,772			4,672			3,906
Vehicle lease financing		124			158			189			228			285
Other		455			489			505			504			484
Unearned income		(847	)		(872	)		(902	)		(931	)		(923	)
Total, net of unearned income	$	49,317		$	44,674		$	43,495		$	42,480		$	40,835
Supplemental Loan Information
Loans excluding conduit	$	47,125		$	42,479		$	41,243		$	40,676		$	39,094
Market Street Funding Corporation conduit		2,192			2,195			2,252			1,804			1,741
Total loans	$	49,317		$	44,674		$	43,495		$	42,480		$	40,835

	June 30 2005		June 30 2004
Commercial Lending Exposure (a)(b)
Investment grade or equivalent
$50 million or greater	17	%	17	%
$25 million to < $50 million	16	%	15	%
< $25 million	16	%	15	%
Non-investment grade
$50 million or greater	2	%	3	%
$25 million to < $50 million	12	%	10	%
<$25 million	37	%	40	%
Total	100	%	100	%

(a) These statistics exclude the loans of Market Street Funding Corporation. The facilities extended by Market Street represent pools of granular obligations, structured to avoid excessive concentration of credit risk such that they attract an investment grade rating.

(b) Exposure represents the sum of all loans, leases, commitments and letters of credit.

Consumer Loan Statistic (c)

Net charge-offs to average loans .15 % .14 % .16 % .19 % .20 %

(c) Includes consumer, residential mortgage and vehicle leasing. During the second quarter of 2004, we sold our consumer vehicle leasing business.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

Allowances for Loan and Lease Losses and Unfunded Loan Commitments and Letters of Credit and

Net Unfunded Commitments (Unaudited)

Change in Allowance for Loan and Lease Losses

Three months ended - in millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Beginning balance	$	600		$	607		$	581		$	593		$	604
Charge-offs
Commercial		(16	)		(12	)		(15	)		(13	)		(26	)
Commercial real estate
Consumer		(11	)		(10	)		(11	)		(10	)		(11	)
Residential mortgage		(1	)								(2	)
Lease financing								(1	)		(1	)		(1	)
Total charge-offs		(28	)		(22	)		(27	)		(26	)		(38	)
Recoveries
Commercial (a)		62			6			9			9			5
Commercial real estate														1
Consumer		3			4			3			3			3
Residential mortgage
Lease financing		1						1			1			3
Total recoveries (a)		66			10			13			13			12
Net recoveries (charge-offs)
Commercial (a)		46			(6	)		(6	)		(4	)		(21	)
Commercial real estate														1
Consumer		(8	)		(6	)		(8	)		(7	)		(8	)
Residential mortgage		(1	)								(2	)
Lease financing		1												2
Total net recoveries (charge-offs) (a)		38			(12	)		(14	)		(13	)		(26	)
Provision for credit losses		(27	)		8			19			13			8
Acquired allowance (Riggs)		23
Net change in allowance for unfunded loan commitments and letters of credit		(6	)		(3	)		21			(12	)		7
Ending balance	$	628		$	600		$	607		$	581		$	593
(a)    Second quarter 2005 amounts reflect the impact of a $53 million loan recovery during that period.
Change in Allowance for Unfunded Loan Commitments and Letters of Credit
Three months ended - in millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Beginning balance	$	78		$	75		$	96		$	84		$	91
Net change in allowance for unfunded loan commitments and letters of credit		6			3			(21	)		12			(7	)
Ending balance	$	84		$	78		$	75		$	96		$	84
Net Unfunded Commitments
In millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Net unfunded commitments	$	34,377		$	30,326		$	30,306		$	28,867		$	28,510

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type

Period ended - in millions	June 30 2005			March 31 2005			December 31 2004			September 30 2004			June 30 2004
Nonaccrual loans
Commercial	$	88		$	83		$	89		$	96		$	119
Commercial real estate		11			11			14			10			3
Consumer		10			13			11			12			11
Residential mortgage		19			19			21			23			23
Lease financing		4			5			5			7			13
Total nonaccrual loans		132			131			140			148			169
Troubled debt restructured loan								3
Total nonperforming loans		132			131			143			148			169
Nonperforming loans held for sale (a)		2			2			3			2			4
Foreclosed and other assets
Lease financing		13			13			14			16			17
Residential mortgage		13			11			10			11			11
Other		4			5			5			7			8
Total foreclosed and other assets		30			29			29			34			36
Total nonperforming assets (b)	$	164		$	162		$	175		$	184		$	209
Nonperforming loans to total loans		.27	%		.29	%		.33	%		.35	%		.41	%
Nonperforming assets to total loans, loans held for sale and foreclosed assets		.32			.35			.39			.42			.49
Nonperforming assets to total assets		.18			.19			.22			.24			.29
(a)    Includes troubled debt restructured loans held for sale.	$	2		$	2		$	2		$	2		$	2
(b)    Excludes equity management assets carried at estimated fair value (June 30, 2005, March 31, 2005, December 31, 2004, September 30, 2004 and June 30, 2004 amounts include troubled debt restructured assets of $15 million, $10 million, $11 million, $10 million and $10 million, respectively).	$	31		$	33		$	32		$	29		$	32

Change in Nonperforming Assets

In millions	Six months ended
January 1, 2005	$	175
Transferred from accrual		104
Returned to performing		(9	)
Principal reductions and payoffs		(72	)
Asset sales		(7	)
Charge-offs and valuation adjustments		(27	)
June 30, 2005	$	164

Page 16

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Assets by Business

Period ended - in millions	June 30 2005		March 31 2005		December 31 2004		September 30 2004		June 30 2004
Regional Community Banking
Nonperforming loans	$	69	$	74	$	80	$	74	$	70
Foreclosed and other assets		10		10		11		11		11
Total	$	79	$	84	$	91	$	85	$	81
Wholesale Banking
Nonperforming loans	$	57	$	46	$	51	$	60	$	85
Nonperforming loans held for sale		2		2		3		2		4
Foreclosed and other assets		18		17		17		20		21
Total	$	77	$	65	$	71	$	82	$	110
PNC Advisors
Nonperforming loans	$	5	$	9	$	9	$	10	$	9
Foreclosed and other assets										1
Total	$	5	$	9	$	9	$	10	$	10
Other (a)
Nonperforming loans	$	1	$	2	$	3	$	4	$	5
Foreclosed and other assets		2		2		1		3		3
Total	$	3	$	4	$	4	$	7	$	8
Consolidated Totals
Nonperforming loans	$	132	$	131	$	143	$	148	$	169
Nonperforming loans held for sale		2		2		3		2		4
Foreclosed and other assets		30		29		29		34		36
Total	$	164	$	162	$	175	$	184	$	209

Largest Nonperforming Assets at June 30, 2005 - in millions (b)

Ranking	Outstandings			Industry
1	$	13		Air Transportation
2		11		Fabricated Metal Manufacturing
3		7		Wholesalers Nondurable Other
4		7		Wholesalers Durable Other
5		7		Real Estate
6		5		Professional Support
7		4		Plastic and Mineral Manufacturing
8		4		Private Households
9		3		Other Transportation
10		3		Machinery Manufacturing
Total	$	64
As a percent of nonperforming assets
		39	%

(a) Represents residential mortgages related to PNC’s asset and liability management function.

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

Page 17

Glossary of Terms

Accounting/administration net fund assets - Net domestic and foreign fund investment assets for which we provide accounting and administration services. We do not include these assets on our Consolidated Balance Sheet.

Adjusted average total assets - Primarily comprised of total average quarterly (or annual) assets plus (less) unrealized losses (gains) on available-for-sale debt securities, less goodwill and certain other intangible assets.

Annualized - Adjusted to reflect a full year of activity.

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

Capital - Represents the amount of resources that a business segment should hold to guard against potentially large losses that could cause insolvency. It is based on a measurement of economic risk, as opposed to risk as defined by regulatory bodies or generally accepted accounting principles. The economic capital measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with an institution’s target credit rating. As such, economic risk serves as a “common currency” of risk that allows an institution to compare different risks on a similar basis.

Charge-off - Process of removing a loan or portion of a loan from a bank’s balance sheet because the loan is considered uncollectible. A charge-off also is recorded when a loan is transferred to held for sale and the loan’s market value is less than its carrying amount.

Common shareholders’ equity to total assets - Common shareholders’ equity divided by total assets. Common shareholders’ equity equals total shareholders’ equity less preferred stock and the portion of capital surplus and retained interest related to the preferred stock.

Custody assets - All investment assets held on behalf of clients under safekeeping arrangements. We do not include these assets on our Consolidated Balance Sheet. Investment assets held in custody at other institutions on our behalf are included in the appropriate asset categories on the Consolidated Balance Sheet as if physically held by us.

Derivatives - Financial contracts whose value is derived from publicly traded securities, interest rates, currency exchange rates or market indices. Derivatives cover a wide assortment of financial contracts, including forward contracts, futures, options and swaps.

Earning assets - Assets that generate income, which include: federal funds sold; resale agreements; other short-term investments, including trading securities; loans held for sale; loans, net of unearned income; securities; and certain other assets.

Economic value of equity (“EVE”) - The present value of the expected cash flows of our existing assets less the present value of the expected cash flows of our existing liabilities, plus the present value of the net cash flows of our existing off-balance sheet positions.

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.

Page 18

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 business segments. These balances are assigned funding rates that represent the interest cost for us to raise/invest funds with similar maturity and repricing structures, using the least-cost funding sources available.

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

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

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

Noninterest income to total revenue – Noninterest income divided by total revenue.

Nonperforming assets - Nonperforming assets include nonaccrual loans, troubled debt restructured loans, nonaccrual loans held for sale, foreclosed assets and other assets. Interest income does not accrue on assets classified as nonperforming.

Nonperforming loans - Nonperforming loans include loans to commercial, lease financing, consumer, commercial real estate and residential mortgage customers as well as troubled debt restructured loans. Nonperforming loans do not include nonaccrual loans held for sale or foreclosed and other assets. Interest income does not accrue on loans classified as nonperforming.

Recovery - Cash proceeds received on a loan that had previously been charged off. The amount received is credited to the allowance for loan and lease losses.

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

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

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

Risk-weighted assets - Primarily 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.

Tangible common capital ratio - Common shareholders’ equity less goodwill and other intangible assets (excluding mortgage servicing rights) divided by assets less goodwill and other intangible assets (excluding mortgage servicing rights).

Taxable-equivalent interest - 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 a taxable investment. To provide more meaningful comparisons of yields and margins for all earning assets, the interest income earned on tax-exempt assets is increased to make it fully equivalent to interest income on other taxable investments.

Tier 1 risk-based capital - Tier 1 capital equals: total shareholders’ equity, plus trust preferred capital securities, plus certain minority interests that are held by others; less goodwill and certain intangible assets, less equity investments in nonfinancial companies and less net unrealized holding losses on available-for-sale equity securities. Net unrealized holding gains on available-for-sale equity securities, net unrealized holding gains (losses) on available-for-sale debt securities and net unrealized holding gains (losses) on cash flow hedge derivatives are excluded from total shareholders’ equity for tier 1 capital purposes.

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

Page 19

Total fund assets serviced - Total domestic and foreign fund investment assets for which we provide related processing services. We do not include these assets on our Consolidated Balance Sheet.

Total deposits - The sum of total transaction deposits, savings accounts, retail certificates of deposit, other time deposits and time deposits in foreign offices.

Total revenue – The sum of total noninterest income and net interest income.

Total risk-based capital - Tier 1 risk-based capital plus qualifying senior and subordinated debt, other minority interest not qualified as tier 1, and the allowance for loan and lease losses, subject to certain limitations.

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

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

Yield curve (shape of the yield curve, flat 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.

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Business Segment Products and Services

Regional Community Banking provides deposit, lending, and cash management services, and investment services through PNC Investments, LLC, to approximately 2.3 million consumer and small business customers within PNC’s primary geographic footprint.

Wholesale Banking provides lending, treasury management, and capital markets-related products and services and commercial loan servicing to mid-sized corporations, government entities and selectively to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services. Capital markets-related products include foreign exchange, derivatives, loan syndications and securities underwriting and distribution. Wholesale Banking provides products and services generally within PNC’s primary geographic markets and provides certain products and services nationally.

PNC Advisors provides a broad range of tailored investment, trust and private banking products and services to affluent individuals and families, including services to the ultra-affluent through its Hawthorn unit and full-service brokerage through J.J.B. Hilliard, W.L. Lyons, Inc. PNC Advisors also serves as investment manager and trustee for employee benefit plans and charitable and endowment assets and provides nondiscretionary defined contribution plan services and investment options through its Vested Interest^® product. PNC Advisors provides services to individuals and corporations primarily within PNC’s primary geographic markets.

BlackRock is one of the largest publicly traded investment management firms in the United States. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, cash management and alternative investment products. Mutual funds include the flagship fund families, BlackRock Funds and BlackRock Liquidity Funds (formerly BlackRock Provident Institutional Funds). In addition, BlackRock provides risk management, investment system outsourcing and financial advisory services to a growing number of institutional investors.

PFPC is among the largest providers of mutual fund transfer agency and accounting and administration services in the United States, offering a wide range of fund processing services to the investment management industry and providing processing solutions to the international marketplace through its Ireland and Luxembourg operations.

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EX-99.3

Exhibit 99.3

The PNC Financial Services Group, Inc.

Second Quarter 2005 Earnings Conference Call

July 19, 2005

Second Quarter 2005 Highlights

Earned $282 million or $0.98 per diluted share

Strong client activity – business segment earnings grew 16% compared with 2Q04

Market sensitive results adversely impacted by environment

Asset quality remained very strong

Riggs successfully converted in 48 hours—expense savings, loan, deposit and client growth met or exceeded ambitious expectations

One PNC evaluation completed and execution phase has commenced

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Income Statement Highlights -Second Quarter 2005

% Change vs.

Second Quarter First Quarter Second Quarter

$millions, except EPS 2005 2005 2004

Net interest income $534 6 % 11 %

Noninterest income 925 (5) 2

Provision (27) N/M N/M

Noninterest expense 1,036 4 14

Net income 282 (20) (7)

EPS (diluted) 0.98 (21) (8)

N/M – not meaningful

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Balance Sheet Highlights -Second Quarter 2005

% Change vs.

Second Quarter First Quarter Second Quarter

Average balances, $billions 2005 2005 2004

Commercial loans $19.3 7% 17%

Consumer loans 16.2 4 16

Total loans 47.1 7 18

Securities 18.9 12 20

Total earning assets 71.9 6 18

Total assets 87.6 5 19

Demand deposits $21.2 4% 8%

Money market deposits 17.5 6 9

Savings and retail CDs 14.0 7 25

Total deposits 56.6 6 16

Borrowed funds 16.3 9 30

At quarter-end

Tangible common capital ratio 5.1%

Loans to deposits 84%

Deposits to total funds 65%

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Business Results are Gaining Momentum

Three Months Ended June 30

Earnings (Loss) Return on

$millions

Capital/Equity

2005 2004 Growth 2005

PNC banking businesses $306 $265 15% 28%

BlackRock 53 48 10% 25%

PFPC 24 17 41% 33%

Total business segment

earnings 383 330 16% 27%

Minority interest in income

of BlackRock (16) (14)

Other (85) (12)

Total consolidated $282 $304 (7)% 14%

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The One PNC Initiative

Goals

Move closer to customer Become more efficient Target resources to more value-added activities

Expected Results

Simplified business structure Eliminate 3,000 positions or 13% of total positions Achieve cost savings of approximately $300 million Generate approximately $100 million in revenues through pricing enhancements and growth initiatives Severance and related charges of $85 million

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One PNC – Financial Impact

$millions

Total 2005 2006 2007

Value of cost reduction ideas

Banking businesses

PFPC $155

20 $30 $225 $300

Shared services and other 125

Total cost reductions 300 30 225 300

Revenue initiatives 100 5 40 100

Total $400 $35 $265 $400

One-time charges $85 $65 $20

53% personnel related

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Cautionary Statement Regarding Forward-Looking Information

We make statements in this presentation, and we may from time to time make other statements, regarding our outlook or expectations for earnings, revenues, expenses and/or other matters regarding or affecting PNC that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Forward-looking statements are typically identified by words such as “believe,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “project” and other similar words and expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of the date they are made. We do not assume any duty and do not undertake to update our forward-looking statements. Actual results or future events could differ, possibly materially, from those that we anticipated in our forward-looking statements, and future results could differ materially from our historical performance.

In addition to factors that we have disclosed in our 2004 annual report on Form 10-K, our first quarter 2005 report on Form 10-Q, and in other reports that we file with the SEC (accessible on the SEC’s website at www.sec.gov and on or through PNC’s corporate website at www.pnc.com), PNC’s forward-looking statements are subject to, among others, the following risks and uncertainties, which could cause actual results or future events to differ materially from those that we anticipated in our forward-looking statements or from our historical performance: changes in political, economic or industry conditions, the interest rate environment, or the financial and capital markets (including as a result of actions of the Federal Reserve Board affecting interest rates, the money supply, or otherwise reflecting changes in monetary policy), which could affect: (a) credit quality and the extent of our credit losses; (b) the extent of funding of our unfunded loan commitments and letters of credit; (c) our allowances for loan and lease losses and unfunded loan commitments and letters of credit; (d) demand for our credit or fee-based products and services; (e) our net interest income; (f) the value of assets under management and assets serviced, of private equity investments, of other debt and equity investments, of loans held for sale, or of other on-balance sheet or off-balance sheet assets; or (g) the availability and terms of funding necessary to meet our liquidity needs;

the impact on us of legal and regulatory developments, including the following: (a) the resolution of legal proceedings or regulatory and other governmental inquiries; (b) increased litigation risk from recent regulatory and other governmental developments; (c) the results of the regulatory examination process, our failure to satisfy the requirements of agreements with governmental agencies, and regulators’ future use of supervisory and enforcement tools; (d) legislative and regulatory reforms, including changes to tax laws; and (e) changes in accounting policies and principles, with the impact of any such developments possibly affecting our ability to operate our businesses or our financial condition or results of operations or our reputation, which in turn could have an impact on such matters as business generation and retention, our ability to attract and retain management, liquidity and funding;

the impact on us of changes in the nature and extent of our competition;

the introduction, withdrawal, success and timing of our business initiatives and strategies;

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Cautionary Statement Regarding Forward-Looking Information (continued) customer acceptance of our products and services, and our customers’ borrowing, repayment, investment and deposit practices;

the impact on us of changes in the extent of customer or counterparty delinquencies, bankruptcies or defaults, which could affect, among other things, credit and asset quality risk and our provision for credit losses;

the ability to identify and effectively manage risks inherent in our businesses;

how we choose to redeploy available capital, including the extent and timing of any share repurchases and acquisitions or other investments in our businesses;

the impact, extent and timing of technological changes, the adequacy of intellectual property protection, and costs associated with obtaining rights in intellectual property claimed by others;

the timing and pricing of any sales of loans or other financial assets held for sale; our ability to obtain desirable levels of insurance and to successfully submit claims under applicable insurance policies; the relative and absolute investment performance of assets under management; and

the extent of terrorist activities and international hostilities, increases or continuations of which may adversely affect the economy and financial and capital markets generally or us specifically.

Our future results are likely to be affected significantly by the results of the implementation of our One PNC initiative, as discussed in this presentation. Generally, the amounts of our anticipated cost savings and revenue enhancements are based to some extent on estimates and assumptions regarding future business performance and expenses, and these estimates and assumptions may prove to be inaccurate in some respects. Some or all of the above factors may cause the anticipated expense savings and revenue enhancements from that initiative not to be achieved in their entirety, not to be accomplished within the expected time frame, or to result in implementation charges beyond those currently contemplated or some other unanticipated adverse impact.

Furthermore, the implementation of cost savings ideas may have unintended impacts on our ability to attract and retain business and customers, while revenue enhancement ideas may not be successful in the marketplace or may result in unintended costs. Assumed attrition required to achieve workforce reductions may not come in the right places or at the right times to meet planned goals.

In addition, we grow our business from time to time by acquiring other financial services companies. Acquisitions in general present us with a number of risks and uncertainties related both to the acquisition transactions themselves and to the integration of the acquired businesses into PNC after closing. In particular, acquisitions may be substantially more expensive to complete (including the integration of the acquired company) and the anticipated benefits, including anticipated cost savings and strategic gains, may be significantly harder or take longer to achieve than expected. As a regulated financial institution, our

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Cautionary Statement Regarding Forward-Looking Information (continued) pursuit of attractive acquisition opportunities could be negatively impacted due to regulatory delays or other regulatory issues. Regulatory and/or legal issues of an acquired business may cause reputational harm to PNC following the acquisition and integration of the acquired business into ours and may result in additional future costs and expenses arising as a result of those issues. Recent acquisitions, including our acquisition of Riggs National Corporation, continue to present the integration and other post-closing risks and uncertainties described above.

You can find additional information on the foregoing risks and uncertainties and additional factors that could affect the results anticipated in our forward-looking statements or from our historical performance in the reports that we file with the SEC. You can access our SEC reports on the SEC’s website at www.sec.gov and on or through our corporate website at www.pnc.com.

Also, risks and uncertainties that could affect the results anticipated in forward-looking statements or from historical performance relating to our majority-owned subsidiary BlackRock, Inc. are discussed in more detail in BlackRock’s filings with the SEC, accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com.

Any annualized, proforma, estimated, third party or consensus numbers in this presentation are used for illustrative or comparative purposes only and may not reflect actual results. Any consensus earnings estimates are calculated based on the earnings projections made by analysts who cover that company. The analysts’ opinions, estimates or forecasts (and therefore the consensus earnings estimates) are theirs alone, are not those of PNC or its management, and may not reflect PNC’s actual or anticipated results.

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