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

November 8, 2007

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 November 8, 2007, William S. Demchak, Vice Chairman of The PNC Financial Services Group, Inc. (the “Corporation”), gave a presentation to investors at the BancAnalysts Association of Boston Conference in Boston, Massachusetts. This presentation was accompanied by a series of electronic slides that included information pertaining to the financial results and business strategies of the Corporation. A copy of these slides and related material is included in this report as Exhibit 99.1 and is furnished herewith.

Item 9.01 Financial Statements and Exhibits.

(d) Exhibits. The exhibit listed on the Exhibit Index accompanying this Form 8-K is furnished herewith.

- 2 -

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: November 8, 2007	By:	/s/ Samuel R. Patterson
		Samuel R. Patterson Controller

- 3 -

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Slide presentation and related material for the BancAnalysts Association of Boston Conference on November 8, 2007	Furnished herewith

- 4 -

EX-99.1

The PNC Financial Services Group, Inc.

BancAnalysts Association of Boston

26

th

Annual Conference

November 8, 2007

Exhibit 99.1

This presentation contains forward-looking statements regarding our outlook or expectations relating to PNC’s future business,

operations,

financial

condition,

financial

performance

and

asset

quality.

Forward-looking

statements

are

necessarily

subject

to

numerous

assumptions,

risks

and

uncertainties,

which

change

over

time.

The forward-looking statements in this presentation are qualified by the factors affecting forward-looking statements identified in

the

more

detailed

Cautionary

Statement

included

in

the

Appendix,

which

is

included

in

the

version

of

the

presentation

materials

posted on our corporate website at www.pnc.com/investorevents.  We provide greater detail regarding these factors in our 2006

Form 10-K, including in the Risk Factors and Risk Management sections, and in our current quarter 2007 Form 10-Q and other SEC

reports (accessible on the SEC’s website at www.sec.gov and on or through our corporate website).

Future events or circumstances may change our outlook or expectations and may also affect the nature of the assumptions, risks

and uncertainties to which our forward-looking statements are subject.  The forward-looking statements in this presentation speak

only as of the date of this presentation.  We do not assume any duty and do not undertake to update those statements.

In this presentation, we will sometimes refer to adjusted results to help illustrate the impact of the deconsolidation of BlackRock

near the end of third quarter 2006 and the impact of certain types of items.  Adjusted results reflect, as applicable, the following

types

of

adjustments:

(1)

2006

periods

reflect

the

impact

of

the

deconsolidation

of

BlackRock

by

adjusting

as

if

we

had

recorded

our BlackRock investment on the equity method prior to its deconsolidation; (2) adjusting the 2006 periods to exclude the impact

of

the

third

quarter

2006

gain

on

the

BlackRock/MLIM

transaction

and

losses

on

the

repositioning

of

PNC’s

securities

and

mortgage

loan portfolios; (3) adjusting fourth quarter 2006 and the 2007 periods to exclude the net mark-to-market adjustments on PNC’s

remaining BlackRock LTIP shares obligation and, as applicable, the gain PNC recognized in first quarter 2007 in connection with the

company’s transfer of BlackRock shares to satisfy a portion of its BlackRock LTIP shares obligation;  (4) adjusting all 2007 and

2006 periods to exclude, as applicable, integration costs related to acquisitions and to the BlackRock/MLIM transaction; and (5)

adjusting, as appropriate, for the tax impact of these adjustments.  We have provided these adjusted amounts and reconciliations

so that investors, analysts, regulators and others will be better able to evaluate the impact of these items on our results for the

periods presented, in addition to providing a basis of comparability for the impact of the BlackRock deconsolidation given the

magnitude

of

the

impact

of

deconsolidation

on

various

components

of

our

income

statement

and

balance

sheet.

We

believe

that

information as adjusted for the impact of the specified items may be useful due to the extent to which these items are not

indicative of our ongoing operations as the result of our management activities on those operations.  While we have not provided

other adjustments for the periods discussed, this is not intended to imply that there could not have been other similar types of

adjustments, but any such adjustments would not have been similar in magnitude to the amount of the adjustments shown.  In

certain discussions, we may also provide revenue information on a taxable-equivalent basis by increasing the interest income

earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments.  We believe this

adjustment may be useful when comparing yields and margins for all earning assets.

This presentation may also include a discussion of other non-GAAP financial measures, which, to the extent not so qualified therein

or in the Appendix, is qualified by GAAP reconciliation information available on our corporate website at www.pnc.com under

“About PNC –

Investor Relations.”

Cautionary Statement Regarding Forward-Looking

Information and Adjusted Information

State of the markets

PNC is well-positioned for this environment

Leveraging our position to capture opportunities

Key Take-aways

Media Outlets Paint a Gloomy Picture

“Another Subprime Lender Files for Bankruptcy”

February

2007,

MoneyNews

“Cash Sources Dry Up for Subprime Mortgage Lenders”

March

2007,

USAToday

“Those Who Profited from Subprimes Now Suffer Too”

August

2007,

MotherJones

“Bond Funds Could Get Hit by Mortgage Mess”

September

2007,

MSNBC.com

“The Real Credit Crunch Has Only Just Begun”

September

2007,

Money

Week

“Backlog of Leveraged Loans Still Unnerves Credit Markets”

October

2007,

Wall

Street

Journal

Estimated credit

Estimated credit

and liquidity

and liquidity

related charges

related charges

in 3Q07

in 3Q07

$35 Billion

$35 Billion

“PIK-Toggle Notes…Risky Debt Issuances Stage Revival”

October

2007,

Wall

Street

Journal

Assessing One’s Current Position

Credit Factors

Liquidity Factors

Liquidity Profile

Subprime/Alt-A

Commercial real

estate

Leveraged lending

Warehouse/

syndications

Structures

SIVs

Loans to deposits

Contingent

funding exposure

Securities book

profile

Capital generation

ability

Access to the

discount window

Strategy and Business Mix Dictate Ability to Respond

High

Low

Flexible

Core funded

Positive operating

leverage

Total return focus

High fee mix

Estimated 3Q07 Related Costs for the Industry

>$5B

>$5B

>$30B

>$30B

Less flexible

Focus on NIM

High cost funding

Negative operating

leverage

NII dependent

$0

$5

$10

$15

$20

$25

$30

$35

$40

$45

$50

J

F

M

A

M

J

J

A

S

O

N

D

J

F

M

A

M

J

J

A

S

O

N

D

J

F

Average Default Rate of

Adjustable-Rate Subprime RMBS

Originated 2000-2006

(% Unpaid Principal Balance)

2009

Subprime Mortgage Resets –

Still Early

in the Cycle

Estimated Subprime Loans with Higher Rate Resets…

Sources:  LoanPerformance, Deutsche Bank, BlackRock, Intex, FBR ABS Research

2007

2008

12 mos.

3.2 %

24 mos.

6.8

36 mos.

11.5

48 mos.

14.6

60 mos.

19.1

72 mos.

20.4

Seasoning

and a Sense of Foreboding

0

2

4

6

8

10

12

14

Default Rates are Still at a Low Point

U.S. Speculative-Grade Bond Default Rate

1983

1985

1989

1991

1993

1999

1995

1997

2001

2003

1987

2005

2007

Long-term

average

4.54%

Source:  Standard & Poor’s Global Fixed Income Research

Recession

U.S. Speculative-grade default rate (%)

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

2,000

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

4Q

1Q

2Q

3Q

10 Year BBB

10 Year B

10 Year CCC

Pricing –

No Bargains Yet

Spread Between Corporate Debt and 10-Year Treasury, bps

Source:  RiskMetrics Group

2003

2004

2005

2006

2007

4.50%

4.75%

5.00%

5.25%

5.50%

5.75%

6.00%

Fed Funds

Ongoing Liquidity Pressures

1 Month LIBOR

Source:  SNL DataSource

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

Diverging Yields

Liquidity Needs

Weekly average

primary credit

borrowings from the

Fed

millions

Source:  Federal Reserve

June 4

July

August

September

October 22

2007

June

July

August

September

October

2007

State of the markets

PNC is well-positioned for this environment

Leveraging our position to capture opportunities

Key Take-aways

PNC

WFC       

7.92 %

NCC

7.33

BBT

7.11

RF

6.95

KEY

6.92

CMA

6.91

USB

6.90

WB

6.88

FITB

6.74

STI

6.62

PNC

6.37

Moderate Risk Profile Reflected in

Absolute Yields

Focus on Total Risk-adjusted Returns

PNC

For the three months ended September 30, 2007.  Source: SNL DataSource, PNC as reported

3Q07

Focus on Risk-adjusted Lending

3Q07

Yield on Total Loans

Yield on Interest Earning Assets

WFC       

8.35 %

BBT

7.70

NCC

7.50

RF

7.39

WB

7.38

USB

7.33

KEY

7.28

CMA

7.13

FITB

6.99

PNC

6.89

STI

6.79

Maintaining a Moderate Credit Risk

Profile –

A Closer Look

PNC

53%

28%

14%

45%

28%

22%

Composition of Loans for Third Quarter 2007

Source: Company reports, peer average reflects average of super-regional banks as defined in Appendix excluding PNC, except

as noted below.

(1) RF and FITB excluded due to unavailability of information. (2) KEY and FITB excluded due to unavailability of information.

Major Loan Category Comparison¹

% of Total Average Loans

Peer Average

PNC

Securities²

5.42%

5.42%

Loans¹:

Commercial

7.42%

7.40%

(includes commercial real estate)

Consumer

6.66%

8.01%

Residential Mortgage

6.07%

7.00%

PNC

Peer

Average

Average Yields

Commercial

(includes commercial

real estate)

Consumer

Residential

Mortgage

High Quality Consumer Loan Portfolio

Auto

5%

Residential

Mortgage

35%

Composition of Consumer Loan and Residential Mortgage Portfolio

As of September 30, 2007

Home Equity Portfolio

Credit Statistics

First lien positions

39%

In-footprint exposure

93%

Weighted average:

Loan to value

72%

FICO scores

726

Net charge-offs¹

0.18%

90 days past due

0.30%

Other

8%

Home

Equity

52%

Residential Mortgage Portfolio

Credit Statistics

Weighted average:

Loan to value

67%

FICO scores

747

Net charge-offs¹

0.01%

90 days past due

1.20%

(1) For the three months ended September 30, 2007.

WB       

0.19 %

RF

0.27

PNC

0.30

CMA

0.32

STI

0.35

KEY

0.35

BBT

0.41

USB

0.54

NCC

0.54

FITB

0.60

WFC

1.02

USB       

318 %

PNC

251

RF

182

CMA

176

BBT

171

KEY

168

WFC

142

WB

117

FITB

117

NCC

113

STI

93

Credit Discipline Reflected in

Reserves and Losses

Proactively Assessing Credits

PNC

For the three months ended September 30, 2007.  Source: SNL DataSource, PNC as reported

3Q07

Managing the Risk

3Q07

Net Charge-offs to Average Loans

Reserves to Nonperforming Assets

$0

$1

$2

$3

$4

$5

$6

$7

2004

2005

2006

Revenue

9%

Creating Positive Operating Leverage

Generating Capital by Growing Revenues Faster Than Expenses

billions

Compound Annual

Growth Rate

(2004 –

2006)

Adjusted Revenue

(as reported

$5.5 billion, $6.3 billion, $8.6 billion for 2004, 2005, 2006, respectively)

Adjusted Noninterest

Expense

(as reported $3.7 billion, $4.3 billion, $4.4 billion for 2004, 2005, 2006, respectively)

Adjusted Net Income

(as reported $1.2 billion, $1.3 billion, $2.6 billion for 2004, 2005, 2006, respectively)

Net Income

12%

$1.2

$1.3

$1.5

Expense

7%

Revenue                +20%   

Expense                  +15%

Net Income            +19%

Trend Continues¹

(1)

As

reported:

revenue

(28%),

expense

(11%),

net

income

(42%).

Adjusted

amounts

are

reconciled

to

GAAP

in

the

Appendix.

Nine months ended September 30, as adjusted

2007 vs 2006

PNC

RF      

3.90 %

PNC

3.99

USB

4.01

FITB

4.04

STI

4.08

WFC

4.14

BBT

4.20

CMA

4.29

WB

4.34

KEY

4.40

NCC

4.46

Cost of Interest Bearing Liabilities²

3Q07

PNC       

58 %

USB

52

FITB

48

WFC

46

WB

42

STI

42

BBT

42

KEY

41

RF

39

NCC

37

CMA

30

Building a Diversified Business Mix

PNC

High Fee Income Contribution

YTD07

(1) For the nine months ended September 30, 2007.  (2) For the three months ended September 30, 2007. (3) Reconciled to

GAAP in the Appendix.  Source: SNL DataSource, PNC as reported

Low Cost Funding Mix

Noninterest Income to Total Revenue¹

50%

without

PFPC and

BlackRock³

(3)

(2)

(1)

0

1

2

3

4

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Proactively Managing the

Balance Sheet

Aligning the Balance Sheet with Expectations

PNC Duration

of Equity

(At Quarter End)

Fed Fund

Effective Rate

(At Quarter End)

2004

PNC

2005

2006

2007

Source:  SNL DataSource, PNC as reported

State of the markets

PNC is well-positioned for this environment

Leveraging our position to capture opportunities

Key Take-aways

Opportunities to Capture Value

Remaining focused on client-related business

Affinity toward asset-based lending

Leveraging Midland Loan Services

Exercising patience and finding pockets of value

Summary

We’ve executed on

our strategies

We’re well-positioned

for the current

environment

Liquidity Profile

High

Low

PNC

PNC

Cautionary Statement Regarding

Forward-Looking Information

Appendix

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,”

“will”,

“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.  Because

forward-looking statements are subject to assumptions and uncertainties,

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.

Our forward-looking statements are subject to the following principal risks and uncertainties.  We provide greater detail regarding some of these

factors in our Form 10-K for the year ended December 31, 2006, including in the Risk Factors and Risk Management sections of that report, and in

our current quarter 2007 Form 10-Q and other SEC reports.  Our forward-looking statements may also be subject to other risks and uncertainties,

including those that we may discuss elsewhere in this presentation or in our filings with the SEC, accessible on the SEC’s website at www.sec.gov

and on or through our corporate website at www.pnc.com under “About PNC –

Investor Relations –

Financial Information.”

•Our businesses and financial results are affected by business and economic conditions, both generally and specifically in the principal markets in

which we operate.  In particular, our businesses and financial results may be impacted by —

•Changes in interest rates and valuations in the debt, equity and

other financial markets.

•Disruptions in the liquidity and other functioning of financial markets, including such disruptions in the markets for real estate and other

assets commonly securing financial products.

•Actions by the Federal Reserve and other government agencies, including those that impact money supply and market interest rates.

•Changes in our customers’, suppliers’

and other counterparties’

performance in general and their creditworthiness in particular.

•Changes in customer preferences and behavior, whether as a result of changing business and economic conditions or other factors.

•A continuation of recent turbulence in significant portions of the global financial markets could impact our performance, both directly by affecting

our revenues and the value of our assets and liabilities and indirectly by affecting the economy generally.

•Our operating results are affected by our liability to provide shares of BlackRock common stock to help fund certain BlackRock long-term incentive

plan (“LTIP”) programs, as our LTIP liability is adjusted quarterly (“marked-to-market”) based on changes in BlackRock’s common stock price and

the number of remaining committed shares, and we recognize gain or loss on such shares at such times as shares are transferred for payouts under

the LTIP programs.

•Competition can have an impact on customer acquisition, growth and retention, as well as on our credit spreads and product pricing, which can

affect market share, deposits and revenues.

•Our ability to implement our business initiatives and strategies

could affect our financial performance over the next several years.

•Legal and regulatory developments could have an impact on our ability to operate our businesses or our financial condition or results of operations

or our competitive position or reputation.  Reputational impacts, in turn, could affect matters such as business generation and retention, our ability

to attract and retain management, liquidity, and funding.  These

legal and regulatory developments could include:  (a) the unfavorable 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 laws and

regulations

involving

tax,

pension,

education

lending,

and

the

protection

of

confidential

customer

information;

and

(e)

changes

in

accounting

policies and principles.

•Our business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where

appropriate, through the effective use of third-party insurance, derivatives, and capital management techniques.

•Our ability to anticipate and respond to technological changes can have an impact on our ability to respond to customer needs and to meet

competitive demands.

•The adequacy of our intellectual property protection, and the extent of any costs associated with obtaining rights in intellectual property claimed by

others, can impact our business and operating results.

•Our business and operating results can also be affected by widespread natural disasters, terrorist activities or international hostilities, either as a

result

of

the

impact

on

the

economy

and

capital

and

other

financial

markets

generally

or

on

us

or

on

our

customers,

suppliers

or

other

counterparties specifically.

•Also, risks and uncertainties that could affect the results anticipated in forward-looking statements or from historical performance relating to our

equity interest in BlackRock, Inc. are discussed in more detail in BlackRock’s 2006 Form 10-K, including in the Risk Factors section, and in

BlackRock’s other filings with the SEC, accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com.

We

grow

our

business

from

time

to

time

by

acquiring

other

financial

services

companies,

including

our

pending

Sterling

Financial

Corporation

(“Sterling”)

acquisition.

Acquisitions

in

general

present

us

with

risks

other

than

those

presented

by

the

nature

of

the

business

acquired.

In

particular, acquisitions may be substantially more expensive to complete (including as a result of costs incurred in connection with 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.  In some cases, acquisitions involve our entry into new businesses or new geographic or other markets, and these

situations

also

present

risks

resulting

from

our

inexperience

in

these

new

areas.

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 related to

the pre-acquisition operations 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 arising as a result of those issues.

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, Sterling’s or other company’s actual or anticipated results.

Cautionary Statement Regarding

Forward-Looking Information (continued)

Appendix

The PNC Financial Services Group, Inc. and Sterling Financial Corporation will be filing a proxy

statement/prospectus

and

other

relevant

documents

concerning

the

merger

with

the

United

States

Securities and Exchange Commission (the “SEC”).  WE URGE INVESTORS TO READ THE PROXY

STATEMENT/PROSPECTUS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION

WITH THE MERGER OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT/PROSPECTUS

BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION.

Investors will be able to obtain these documents free of charge at the SEC’s web site at

http://www.sec.gov.  In addition, documents filed with the SEC by The PNC Financial Services Group, Inc.

will be available free of charge from Shareholder Relations at (800) 843-2206.  Documents filed with the

SEC by Sterling Financial Corporation will be available free of charge from Sterling Financial Corporation

by contacting Shareholder Relations at (877) 248-6420.

The directors, executive officers, and certain other members of management and employees of Sterling

Financial Corporation are participants in the solicitation of proxies in favor of the merger from the

shareholders of Sterling Financial Corporation.  Information about the directors and executive officers of

Sterling Financial Corporation is included in the proxy statement for its May 8, 2007 annual meeting of

shareholders, which was filed with the SEC on April 2, 2007.  Additional information regarding the

interests of such participants will be included in the proxy statement/prospectus and the other relevant

documents filed with the SEC when they become available.

Additional Information About The PNC/Sterling

Financial Corporation Transaction

Appendix

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

For the Nine Months Ended September 30

Appendix

NINE MONTHS ENDED

In millions

As Reported 

Adjustments

As Adjusted (a) 

As Reported 

Adjustments

As Adjusted (b)

Net interest income

$2,122

$2,122

$1,679

($10)

$1,669

Net interest income:

% Change As

Reported

% Change As

Adjusted

     Loans

806

806

682

(10)

672

18%

20%

     Deposits

1,316

1,316

997

997

32%

32%

Noninterest Income

2,956

$4

2,960

5,358

(2,777)

2,581

(45%)

15%

Total revenue

5,078

4

5,082

7,037

(2,787)

4,250

(28%)

20%

Loan net interest income as a % of total revenue

15.9%

15.9%

9.7%

15.8%

Deposit net interest income as a % of total revenue

25.9%

25.9%

14.2%

23.5%

Noninterest income as a % of total revenue

58.2%

58.2%

76.1%

60.7%

Provision for credit losses

127

127

82

82

Noninterest income

2,956

4

2,960

5,358

(2,777)

2,581

Noninterest expense

3,083

(67)

3,016

3,474

(856)

2,618

(11%)

15%

     Income before minority interest

        and income taxes

1,868

71

1,939

3,481

(1,931)

1,550

Minority interest in income

   of BlackRock

47

(47)

Income taxes

579

23

602

1,215

(788)

427

     Net income

$1,289

$48

$1,337

$2,219

($1,096)

$1,123

(42%)

19%

OPERATING LEVERAGE - NINE MONTHS ENDED

As Reported

As Adjusted

Total revenue

(28%)

20%

Noninterest expense

(11%)

15%

Operating leverage 

(17%)

5%

(a)

Amounts

adjusted

to

exclude

the

impact

of

the

following

pretax

items:

(1)

the

gain

of

$83

million

recognized

in

connection

with

PNC's

transfer

of

BlackRock

shares

to

satisfy

a

portion

of

our

BlackRock

LTIP

shares

obligation,

(2)

the

net

mark-to-market

adjustment

totaling

$82

million

on

our

remaining

BlackRock

LTIP

shares

obligation,

and

(3)

acquisition

and

BlackRock/MLIM

transaction integration costs totaling $72 million.  The net tax impact of these items is reflected in the adjustment to income taxes.

(b)

Amounts

adjusted

to

exclude

the

impact

of

the

following

pretax

items:

(1)

the

gain

of

$2.078

billion

on

the

BlackRock/MLIM

transaction,

(2)

the

loss

of

$196

million

on

the

securities

portfolio

rebalancing,

(3)

BlackRock/MLIM

transaction

integration

costs

of

$91

million

for

the

first

nine

months

of

2006,

and

(4)

the

mortgage

loan

portfolio

repositioning

loss

of

$48

million.

The

net

tax

impact

of

these

items

is

reflected

in

the

adjustment

to

income

taxes.

We

believe

that

information

as

adjusted

for

the

impact

of

these

items

may

be

useful

due

to

the

extent

to

which

these

items

are

not

indicative

of

our

ongoing

operations

as

the

result

of

our

management

activities.

Additionally,

the

amounts

are

also

adjusted

as

if

we

had

recorded

our

investment

in

BlackRock

on

the

equity

method.

We

believe

that

providing

amounts

adjusted

as

if

we

had

recorded

our

investment

in

BlackRock

on

the

equity

method

for

all

periods

presented

helps

provide

a basis of comparability for the impact of the BlackRock deconsolidation given the magnitude of the impact on various components of our consolidated income statement.

2006 to 2007 Change

September 30, 2007

September 30, 2006

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

2004 to 2006

Appendix

BlackRock

For the year ended December 31, 2006

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Adjustments (a)

Other Adjustments

Equity Method

As Adjusted

Net interest income

$2,245

$(10)

$2,235

Provision for credit losses

124

124

Noninterest income

6,327

$(1,812)

(1,087)

$144

3,572

Noninterest expense

4,443

(91)

(765)

3,587

Income before minority interest and income taxes

4,005

(1,721)

(332)

144

2,096

Minority interest in income of BlackRock

47

18

(65)

Income taxes

1,363

(658)

(130)

7

582

   Net income

$2,595

$(1,081)

$(137)

$137

$1,514

For the year ended December 31, 2005

BlackRock

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Other Adjustments

Equity Method

As Adjusted

Net interest income

$2,154

$(12)

$2,142

Provision for credit losses

21

21

Noninterest income

4,173

(1,214)

$163

3,122

Noninterest expense

4,306

(853)

3,453

Income before minority interest and income taxes

2,000

(373)

163

1,790

Minority interest in income of BlackRock

71

(71)

Income taxes

604

(150)

11

465

   Net income

$1,325

$(152)

$152

$1,325

(a)

Includes

the

impact

of

the

following

items,

all

on

a

pretax

basis,

and

adjustment

for

the

tax

impact

thereof:

$2,078

million

gain

on

BlackRock/MLIM

transaction,

$196

million

securities

portfolio

rebalancing

loss,

$101

million

of

BlackRock/MLIM

transaction

integration

costs,

$48

million

mortgage

loan

portfolio

repositioning

loss,

and

$12 million net loss related to our BlackRock LTIP shares obligation.

Non-GAAP to GAAP

Reconcilement

Income Statement Summary –

2004 to 2006 (continued)

Appendix

For the year ended December 31, 2004

BlackRock

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Other Adjustments

Equity Method

As Adjusted

Net interest income

$1,969

$(14)

$1,955

Provision for credit losses

52

52

Noninterest income

3,572

(745)

$101

2,928

Noninterest expense

3,712

(564)

3,148

Income before minority interest and income taxes

1,777

(195)

101

1,683

Minority interest in income of BlackRock

42

(42)

Income taxes

538

(59)

7

486

   Net income

$1,197

$(94)

$94

$1,197

In millions

2004

2005

2006

CAGR

Adjusted net interest income

$1,955

$2,142

$2,235

Adjusted noninterest income

2,928

3,122

3,572

Adjusted total revenue

4,883

5,264

5,807

9%

Adjusted noninterest expense

3,148

3,453

3,587

7%

Adjusted net income

$1,197

$1,325

$1,514

12%

In millions

2004

2005

2006

CAGR

Net interest income, as reported

$1,969

$2,154

$2,245

Noninterest income, as reported

3,572

4,173

6,327

Total revenue, as reported

5,541

6,327

8,572

24%

Noninterest expense, as reported

3,712

4,306

4,443

9%

Net income, as reported

$1,197

$1,325

$2,595

47%

Non-GAAP to GAAP

Reconcilement

Noninterest Income/Total Revenue

Appendix

Nine Months Ending September 30, 2007

Dollars in millions

Retail

Banking

Corporate &

Institutional

Banking

Other

Banking and

Other

BlackRock

PFPC

Total

Net interest income (expense)

$1,517

$571

$48

$2,136

($14)

$2,122

Noninterest income

1,280

558

260

2,098

$227

631

2,956

Total Revenue

$2,797

$1,129

$308

$4,234

$227

$617

$5,078

Noninterest income as a % of

total revenue

46%

49%

84%

50%

100%

102%

58%

The PNC Financial Services Group, Inc.

PNC

BB&T Corporation

BBT

Comerica

CMA

Fifth Third Bancorp

FITB

KeyCorp

KEY

National City Corporation

NCC

Regions Financial

RF

SunTrust Banks, Inc.

STI

U.S. Bancorp

USB

Wachovia Corporation

WB

Wells Fargo & Company

WFC

Ticker

Peer Group of

Super-Regional Banks

Appendix