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

February 3, 2009

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 February 3, 2009, The PNC Financial Services Group, Inc. (“the Corporation”) issued a press release and held a conference call for investors regarding the Corporation’s earnings and business results for the fourth quarter and full year 2008, and impact of the acquisition of National City Corporation as of December 31, 2008. The Corporation also provided supplementary financial information on its web site, including financial information disclosed in connection with its press release, and provided electronic presentation slides on its web site used in connection with the related investor conference call. Copies of the supplementary financial information and electronic presentation slides are included in this Report as Exhibits 99.1 and 99.2, respectively, and are furnished herewith.

Item 9.01 Financial Statements and Exhibits.

(d) 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: February 3, 2009	By:	/s/ Samuel R. Patterson
		Samuel R. Patterson
		Controller

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EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Financial Supplement (unaudited) for Fourth Quarter and Full Year 2008	Furnished herewith
99.2	Electronic presentation slides for earnings release conference call	Furnished herewith

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EX-99.1

Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2008

(UNAUDITED)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER AND FULL YEAR 2008

(UNAUDITED)

	Page
Consolidated Results:
Income Statement	1
Balance Sheet	2
Capital Ratios	2
Average Balance Sheet and Supplemental Average Balance Sheet Information	3-4
Net Interest Margin	5
Selected Income Statement Information, Net Securities Gains (Losses), and Trading Revenue	6
Loans	7-9
Loans Held for Sale	9
Allowances for Credit Losses and Net Unfunded Commitments	10
Nonperforming Assets	11-13
Business Segment Results:
Business Descriptions	14
Summary of Earnings and Revenue	15
Period-end Employees	15
Retail Banking	16-18
Corporate & Institutional Banking	19
Global Investment Servicing	20
Glossary of Terms	21-24

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on February 3, 2009. 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 United States Securities and Exchange Commission (“SEC”) filings.

National City Corporation Acquisition

On December 31, 2008, we acquired National City Corporation (“National City”) for approximately $6.1 billion. The total consideration included approximately $5.6 billion of PNC common stock, representing approximately 95 million shares, $150 million of preferred stock and $381 million of cash. Our Consolidated Balance Sheet as of December 31, 2008 and other consolidated PNC information presented as of that date in this Financial Supplement includes the impact of National City. All other disclosures, including the business segment tables on pages 15-20 (other than Period-end Employees on page 15), exclude any impact of National City. The assets and liabilities of National City were recorded at estimated fair value at December 31, 2008 and are subject to refinement as additional information as of that date becomes available.

Sterling Financial Corporation Acquisition

We completed our acquisition of Sterling Financial Corporation (“Sterling”) on April 4, 2008. PNC issued approximately 4.6 million shares of PNC common stock and paid approximately $224 million in cash as consideration for the acquisition. PNC converted the Sterling banking charter and financial and customer data onto PNC’s financial and operational systems during August 2008.

Hilliard Lyons Divestiture

On March 31, 2008, we completed the sale of J.J.B. Hilliard, W.L. Lyons, LLC (“Hilliard Lyons”), a Louisville, Kentucky-based wholly-owned subsidiary of PNC and a full-service brokerage and financial services provider, to Houchens Industries, Inc. We recognized an after-tax gain of $23 million in the first quarter of 2008 in connection with this divestiture. Information for the periods presented reflects the reclassification of results for Hilliard Lyons, including the gain on the sale of this business, from the Retail Banking business segment to “Other, including BlackRock.”

Yardville National Bancorp Acquisition

We completed our acquisition of Yardville National Bancorp (“Yardville”) on October 26, 2007. PNC issued approximately 3.4 million shares of PNC common stock and paid approximately $156 million in cash as consideration for the acquisition. PNC converted the Yardville banking charter and financial and customer data onto PNC’s financial and operational systems during March 2008.

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Income Statement (Unaudited)

	Year ended						Three months ended
	December 31			December 31			December 31			September 30			June 30			March 31			December 31
In millions, except per share data	2008			2007			2008			2008			2008			2008			2007
Interest Income
Loans	$	4,138		$	4,232		$	993		$	1,024		$	1,050		$	1,071		$	1,123
Investment securities		1,746			1,429			476			447			419			404			398
Other		429			505			74			103			108			144			149
Total interest income		6,313			6,166			1,543			1,574			1,577			1,619			1,670
Interest Expense
Deposits		1,485			2,053			333			340			362			450			522
Borrowed funds		1,005			1,198			218			234			238			315			355
Total interest expense		2,490			3,251			551			574			600			765			877
Net interest income		3,823			2,915			992			1,000			977			854			793
Noninterest Income
Fund servicing		904			835			209			233			234			228			215
Asset management		686			784			97			180			197			212			225
Consumer services		623			692			151			153			149			170			179
Corporate services		704			713			157			198			185			164			180
Service charges on deposits		372			348			101			97			92			82			90
Net securities gains (losses)		(206	)		(5	)		(172	)		(74	)		(1	)		41			(1	)
Other		284			423			141			(133	)		206			70			(54	)
Total noninterest income		3,367			3,790			684			654			1,062			967			834
Total revenue		7,190			6,705			1,676			1,654			2,039			1,821			1,627
Provision for credit losses		1,517			315			990			190			186			151			188
Noninterest Expense
Personnel		2,154			2,140			494			569			547			544			553
Occupancy		368			350			94			89			90			95			95
Equipment		359			311			92			91			94			82			84
Marketing		125			115			31			38			34			22			29
Other		1,424			1,380			420			355			350			299			452
Total noninterest expense		4,430			4,296			1,131			1,142			1,115			1,042			1,213
Income (loss) before income taxes		1,243			2,094			(445	)		322			738			628			226
Income taxes (benefit)		361			627			(197	)		74			233			251			48
Net income (loss)	$	882		$	1,467		$	(248	)	$	248		$	505		$	377		$	178
Earnings (Loss) Per Common Share
Basic	$	2.50		$	4.43		$	(.77	)	$	.72		$	1.47		$	1.11		$	.53
Diluted	$	2.46		$	4.35		$	(.77	)	$	.71		$	1.45		$	1.09		$	.52
Average Common Shares Outstanding
Basic		344			331			348			345			344			339			338
Diluted		347			335			350			348			347			342			341
Efficiency		62	%		64	%		67	%		69	%		55	%		57	%		75	%
Noninterest income to total revenue		47	%		57	%		41	%		40	%		52	%		53	%		51	%
Effective tax rate (a)		29.0	%		29.9	%		44.3	%		23.0	%		31.6	%		40.0	%		21.2	%

(a) The higher effective tax rate for the fourth quarter of 2008 resulted from the net loss in that period. The higher effective tax rate for the first quarter of 2008 was due to taxes associated with the gain on the sale of Hilliard Lyons. The lower effective tax rates for the third quarter of 2008 and the fourth quarter of 2007 were primarily due to lower pretax income in relation to tax credits and earnings that are not subject to tax.

Page 1

THE PNC FINANCIAL SERVICES GROUP, INC.

Consolidated Balance Sheet (Unaudited)

	December 31			September 30			June 30			March 31			December 31
In millions, except par value	2008(a)			2008			2008			2008			2007
Assets
Cash and due from banks	$	4,471		$	3,060		$	3,525		$	3,934		$	3,567
Federal funds sold and resale agreements (includes $1,072, $1,007, $1,001, and $1,032 measured at fair value at December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008) (b)		1,856			1,826			3,015			2,157			2,729
Trading securities		1,725			2,273			2,163			3,093			3,556
Other short-term investments		15,884			593			542			894			573
Loans held for sale (includes $3,225, $1,465, $1,604, and $2,068 measured at fair value at December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008) (b)		4,366			1,922			2,288			2,516			3,927
Investment securities		43,473			31,031			31,032			28,581			30,225
Loans, net of unearned income of $1,462, $910, $934, $951, and $990		175,489			75,184			73,040			70,802			68,319
Allowance for loan and lease losses		(3,917	)		(1,053	)		(988	)		(865	)		(830	)
Net loans		171,572			74,131			72,052			69,937			67,489
Goodwill		8,868			8,829			8,824			8,244			8,405
Equity investments		8,554			6,735			6,376			6,187			6,045
Other		30,312			15,210			12,954			14,448			12,404
Total assets	$	291,081		$	145,610		$	142,771		$	139,991		$	138,920
Liabilities
Deposits
Noninterest-bearing	$	37,148		$	19,255		$	19,869		$	19,176		$	19,440
Interest-bearing		155,717			65,729			64,820			61,234			63,256
Total deposits		192,865			84,984			84,689			80,410			82,696
Borrowed funds
Federal funds purchased and repurchase agreements		5,153			7,448			9,230			7,664			9,774
Federal Home Loan Bank borrowings		17,895			10,466			9,572			9,663			7,065
Bank notes and senior debt (includes $6, $11, and $11 measured at fair value at September 30, 2008, June 30, 2008, and March 31, 2008) (b)		10,957			5,792			5,804			6,842			6,821
Subordinated debt		11,208			5,192			5,169			5,402			4,506
Other		7,027			3,241			2,697			3,208			2,765
Total borrowed funds		52,240			32,139			32,472			32,779			30,931
Allowance for unfunded loan commitments and letters of credit		344			127			124			152			134
Accrued expenses		3,949			2,650			3,388			3,878			4,330
Other		14,035			9,422			4,981			6,341			4,321
Total liabilities		263,433			129,322			125,654			123,560			122,412
Minority and noncontrolling interests in consolidated entities		2,226			2,070			2,009			2,008			1,654
Shareholders’ Equity
Preferred stock (c)
Common stock - $5 par value Authorized 800 shares, issued 452, 357, 357, 353, and 353 shares		2,261			1,787			1,787			1,764			1,764
Capital surplus - preferred stock		7,918			493			492
Capital surplus - common stock and other		8,328			2,884			2,895			2,603			2,618
Retained earnings		11,461			11,959			11,940			11,664			11,497
Accumulated other comprehensive loss		(3,949	)		(2,230	)		(1,227	)		(779	)		(147	)
Common stock held in treasury at cost: 9, 9, 11, 12, and 12 shares		(597	)		(675	)		(779	)		(829	)		(878	)
Total shareholders’ equity		25,422			14,218			15,108			14,423			14,854
Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	291,081		$	145,610		$	142,771		$	139,991		$	138,920
Capital Ratios (d)
Tier 1 risk-based		9.7	%		8.2	%		8.2	%		7.7	%		6.8	%
Total risk-based		13.5			11.9			11.9			11.4			10.3
Leverage		17.6			7.2			7.3			6.8			6.2
Tangible common equity		2.8			3.6			4.3			4.7			4.7

(a) Includes the impact of National City, which we acquired on December 31, 2008. In accordance with GAAP, the National City balances are reflected at fair value as of that date.

(b) Amounts represent items for which the Corporation has elected the fair value option under SFAS 159.

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

(d) The ratios as of December 31, 2008 are estimated.

Page 2

THE PNC FINANCIAL SERVICES GROUP, INC.

Average Consolidated Balance Sheet (Unaudited) (a)

	Year ended						Three months ended
In millions	December 31 2008			December 31 2007			December 31 2008			September 30 2008			June 30 2008			March 31 2008			December 31 2007
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed	$	22,058		$	19,163		$	23,957		$	22,924		$	20,813		$	20,506		$	20,592
Commercial mortgage-backed		5,666			4,025			5,428			5,863			5,838			5,538			4,921
Asset-backed		3,126			2,394			2,768			3,522			3,363			2,849			2,704
U.S. Treasury and government agencies		50			293			32			32			47			90			155
State and municipal		764			227			1,070			798			773			411			306
Other debt		220			47			320			266			211			84			52
Corporate stocks and other		412			392			358			411			385			494			458
Total securities available for sale		32,296			26,541			33,933			33,816			31,430			29,972			29,188
Securities held to maturity		402						1,596
Total investment securities		32,698			26,541			35,529			33,816			31,430			29,972			29,188
Loans, net of unearned income
Commercial		30,962			25,509			32,786			31,070			30,825			29,147			27,528
Commercial real estate		9,368			7,671			9,582			9,560			9,340			8,986			8,919
Equipment lease financing		2,566			2,559			2,563			2,573			2,646			2,484			2,552
Consumer		20,526			17,718			21,645			20,984			20,558			18,897			18,150
Residential mortgage		9,017			8,564			8,597			8,875			9,193			9,411			9,605
Other		305			432			276			286			266			391			400
Total loans, net of unearned income		72,744			62,453			75,449			73,348			72,828			69,316			67,154
Loans held for sale		2,502			2,955			1,915			2,146			2,350			3,607			3,408
Federal funds sold and resale agreements		2,472			2,152			1,591			2,736			2,528			3,040			2,516
Other		4,068			3,909			3,135			3,700			4,068			5,384			4,926
Total interest-earning assets		114,484			98,010			117,619			115,746			113,204			111,319			107,192
Noninterest-earning assets:
Allowance for loan and lease losses		(962	)		(690	)		(1,084	)		(1,012	)		(900	)		(852	)		(749	)
Cash and due from banks		2,705			3,018			2,293			2,779			2,725			3,027			3,089
Other		25,793			23,080			24,281			25,486			26,363			27,061			25,418
Total assets	$	142,020		$	123,418		$	143,109		$	142,999		$	141,392		$	140,555		$	134,950
Supplemental Average Balance Sheet Information (Unaudited)
Trading Assets
Securities (b)	$	2,387		$	2,708		$	905		$	2,298		$	2,471		$	3,872		$	3,486
Resale agreements (c)		1,794			1,133			1,228			1,937			1,731			2,129			1,320
Financial derivatives (d)		2,389			1,378			2,937			1,775			2,028			2,808			1,785
Loans at fair value (d)		83			166			54			74			92			114			148
Total trading assets	$	6,653		$	5,385		$	5,124		$	6,084		$	6,322		$	8,923		$	6,739

(a) The National City acquisition did not impact the Average Consolidated Balance Sheet for any of the periods presented.

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

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

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

Page 3

THE PNC FINANCIAL SERVICES GROUP, INC.

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

	Year ended				Three months ended
In millions	December 31 2008		December 31 2007		December 31 2008		September 30 2008		June 30 2008		March 31 2008		December 31 2007
Liabilities, Minority and Noncontrolling Interests, and Shareholders’ Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	27,625	$	23,840	$	29,450	$	28,075	$	27,543	$	25,405	$	24,697
Demand		9,947		9,259		10,252		9,958		9,997		9,580		9,587
Savings		2,714		2,687		2,668		2,751		2,813		2,625		2,662
Retail certificates of deposit		16,642		16,690		16,767		16,456		16,791		16,556		16,921
Other time		4,424		2,119		4,798		4,393		4,686		3,813		1,948
Time deposits in foreign offices		5,006		4,623		4,748		5,141		4,112		6,026		6,488
Total interest-bearing deposits		66,358		59,218		68,683		66,774		65,942		64,005		62,303
Borrowed funds
Federal funds purchased and repurchase agreements		7,228		7,983		5,979		7,870		6,887		8,178		8,107
Federal Home Loan Bank borrowings		9,303		2,168		9,710		9,660		9,602		8,233		6,339
Bank notes and senior debt		6,064		6,282		5,120		5,772		6,621		6,754		7,676
Subordinated debt		4,990		4,247		5,090		5,088		5,132		4,649		4,118
Other		3,737		2,344		4,087		3,758		2,854		4,247		2,353
Total borrowed funds		31,322		23,024		29,986		32,148		31,096		32,061		28,593
Total interest-bearing liabilities		97,680		82,242		98,669		98,922		97,038		96,066		90,896
Noninterest-bearing liabilities, minority and noncontrolling interests, and shareholders’ equity:
Demand and other noninterest-bearing deposits		18,155		17,587		18,809		18,193		18,045		17,564		18,472
Allowance for unfunded loan commitments and letters of credit		134		125		127		124		152		135		127
Accrued expenses and other liabilities		10,033		8,195		10,634		9,396		9,410		10,690		9,035
Minority and noncontrolling interests in consolidated entities		1,981		1,335		2,078		2,020		2,008		1,817		1,658
Shareholders’ equity		14,037		13,934		12,792		14,344		14,739		14,283		14,762
Total liabilities, minority and noncontrolling interests, and shareholders’ equity	$	142,020	$	123,418	$	143,109	$	142,999	$	141,392	$	140,555	$	134,950
Supplemental Average Balance Sheet Information (Unaudited) (Continued)
Deposits and Common Shareholders’ Equity
Interest-bearing deposits	$	66,358	$	59,218	$	68,683	$	66,774	$	65,942	$	64,005	$	62,303
Demand and other noninterest-bearing deposits		18,155		17,587		18,809		18,193		18,045		17,564		18,472
Total deposits	$	84,513	$	76,805	$	87,492	$	84,967	$	83,987	$	81,569	$	80,775
Transaction deposits	$	55,727	$	50,686	$	58,511	$	56,226	$	55,585	$	52,549	$	52,756
Common shareholders’ equity	$	13,703	$	13,927	$	12,205	$	13,838	$	14,513	$	14,276	$	14,755
Trading Liabilities
Securities sold short (b)	$	1,294	$	1,657	$	530	$	1,370	$	1,157	$	2,127	$	1,748
Repurchase agreements and other borrowings (c)		756		520		318		609		691		661		630
Financial derivatives (d)		2,423		1,384		2,954		1,806		2,051		2,856		1,772
Borrowings at fair value (d)		22		39		11		20		25		30		39
Total trading liabilities	$	4,495	$	3,600	$	3,813	$	3,805	$	3,924	$	5,674	$	4,189

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

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

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

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

Page 4

THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Net Interest Margin (Unaudited) (a) (b)

	Year ended				Three months ended
Net Interest Margin	December 31 2008		December 31 2007		December 31 2008		September 30 2008		June 30 2008		March 31 2008		December 31 2007
Average yields/rates
Yield on interest-earning assets
Loans	5.71	%	6.80	%	5.22	%	5.53	%	5.76	%	6.18	%	6.62	%
Investment securities	5.36		5.39		5.39		5.32		5.35		5.41		5.46
Other	4.86		5.70		4.43		4.85		5.04		4.88		5.51
Total yield on interest-earning assets	5.55		6.32		5.22		5.42		5.59		5.83		6.19
Rate on interest-bearing liabilities
Deposits	2.24		3.47		1.92		2.02		2.20		2.82		3.31
Borrowed funds	3.21		5.20		2.86		2.85		3.04		3.89		4.88
Total rate on interest-bearing liabilities	2.55		3.95		2.21		2.29		2.47		3.17		3.81
Interest rate spread	3.00		2.37		3.01		3.13		3.12		2.66		2.38
Impact of noninterest-bearing sources	.37		.63		.36		.33		.35		.43		.58
Net interest margin	3.37	%	3.00	%	3.37	%	3.46	%	3.47	%	3.09	%	2.96	%

(a) The National City acquisition did not impact the net interest margin for any of the periods presented.

(b) Calculated as annualized taxable-equivalent net interest income divided by average earning assets. The interest income earned on certain earning assets is completely or partially exempt from federal income tax. As such, these tax-exempt instruments typically yield lower returns than taxable investments. To provide more meaningful comparisons of yields and margins for all earning assets in calculating net interest margins, in this table we use net interest income on a taxable-equivalent basis by increasing the interest income earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under GAAP in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the years ended December 31, 2008 and December 31, 2007 were $36 million and $27 million, respectively. The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2008, September 30, 2008, June 30, 2008, March 31, 2008 and December 31, 2007 were $8 million, $9 million, $10 million, $9 million, and $7 million, respectively.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Selected Consolidated Income Statement Information, Net Securities Gains (Losses), and Trading Revenue (Unaudited)

SELECTED CONSOLIDATED INCOME STATEMENT INFORMATION

	Year ended						Three months ended
In millions	December 31 2008			December 31 2007			December 31 2008			September 30 2008			December 31 2007
OTHER NONINTEREST INCOME
BlackRock LTIP shares adjustment	$	246		$	(127	)	$	177		$	(51	)	$	(128	)
Gains (losses) on commercial mortgage loans held for sale, net of hedges		(197	)		3			16			(75	)		(19	)
Gain on sale of Hilliard Lyons (a)		114
Visa redemption gain		95
Reversal of legal contingency reserve established in connection with an acquisition due to a settlement		61									61
Equity management gains (losses)		(24	)		102			(16	)		(24	)		21
PROVISION FOR CREDIT LOSSES
Integration costs - National City (b)		504						504
Integration costs - other (b)		23			45									45
NONINTEREST EXPENSE
Integration costs - National City		71						71
Integration costs - other		51			102			10			14			35
Visa indemnification liability		(46	)		82			(3	)					82

(a) The impact of the gain was $23 million after taxes.

(b) Conforming provision for credit losses.

NET SECURITIES GAINS (LOSSES)

	Year ended						Three months ended
In millions	December 31 2008			December 31 2007			December 31 2008			September 30 2008			December 31 2007
Other-than-temporary impairment losses	$	(312	)	$	(6	)	$	(174	)	$	(129	)	$	(6	)
Net gains on sales of securities		106			1			2			55			5
Net securities gains (losses)	$	(206	)	$	(5	)	$	(172	)	$	(74	)	$	(1	)

TRADING REVENUE

	Year ended					Three months ended
In millions	December 31 2008			December 31 2007		December 31 2008			September 30 2008			December 31 2007
Net interest income	$	72		$	7	$	14		$	19		$	7
Noninterest income		(55	)		104		22			(54	)		(10	)
Total trading revenue	$	17		$	111	$	36		$	(35	)	$	(3	)
Securities underwriting and trading (c)	$	(17	)	$	41	$	(14	)	$	(13	)	$	10
Foreign exchange		73			58		21			19			16
Financial derivatives		(39	)		12		29			(41	)		(29	)
Total trading revenue	$	17		$	111	$	36		$	(35	)	$	(3	)

(c) Includes changes in fair value for certain loans accounted for at fair value.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Loans (Unaudited)

	December 31			September 30			June 30			March 31			December 31
In millions	2008 (a)			2008			2008			2008			2007
Commercial
Retail/wholesale	$	11,482		$	6,223		$	6,451		$	6,343		$	6,013
Manufacturing		13,263			5,793			5,438			5,279			4,814
Other service providers		9,038			4,037			3,793			3,677			3,639
Real estate related (b)		9,107			6,308			6,259			5,854			5,556
Financial services		5,194			1,730			1,585			1,521			1,419
Health care		3,201			1,683			1,685			1,630			1,464
Other		16,103			6,637			5,764			5,335			5,702
Total commercial		67,388			32,411			30,975			29,639			28,607
Commercial real estate
Real estate projects		17,049			6,622			6,539			6,448			6,114
Commercial mortgage		8,496			3,047			2,912			2,603			2,792
Total commercial real estate		25,545			9,669			9,451			9,051			8,906
Equipment lease financing		7,950			3,553			3,522			3,464			3,500
TOTAL COMMERCIAL LENDING		100,883			45,633			43,948			42,154			41,013
Consumer
Home equity
Lines of credit		24,039			7,619			7,280			6,893			6,811
Installment		14,251			7,273			7,455			7,422			7,636
Education		4,188			2,648			2,117			2,024			132
Automobile		1,667			1,606			1,590			1,533			1,513
Credit card and other unsecured lines of credit		3,163			511			474			441			462
Other		5,087			1,749			1,771			1,715			1,772
Total consumer		52,395			21,406			20,687			20,028			18,326
Residential real estate
Residential mortgage		18,772			8,356			8,604			8,821			9,046
Residential construction		2,994			401			443			478			511
Total residential real estate		21,766			8,757			9,047			9,299			9,557
TOTAL CONSUMER LENDING		74,161			30,163			29,734			29,327			27,883
Other		1,907			298			292			272			413
Unearned income		(1,462	)		(910	)		(934	)		(951	)		(990	)
Total, net of unearned income	$	175,489		$	75,184		$	73,040		$	70,802		$	68,319

(a) Amounts at December 31, 2008 included $99.7 billion of loans related to National City.

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

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THE PNC FINANCIAL SERVICES GROUP, INC.

National City Loan Portfolio Assessment (Unaudited)

Dollars in billions

SUMMARY	Recorded Dec. 31, 2008			Due Diligence Estimates
Total loans acquired (a)	$	108.0		$	113.4
Total life of loan losses				$	19.9
Ongoing provision for credit losses					(2.9	)
Total valuation reserves at closing (b)	$	12.6		$	17.0
Total valuation reserves percentage		11.7	%		15.0	%

The due diligence amounts were estimates at the time PNC announced the National City acquisition on October 24, 2008. These estimates were based on pre-announcement financial information as of August 31, 2008.

	December 31, 2008						Due Diligence Estimates
	Loans Acquired		Valuation Reserves		Reserves as % of Loans Acquired		Loans Acquired		Valuation Reserves		Reserves as % of Loans Acquired
Valuation Reserves By Loan Classification
Commercial / Commercial real estate	$	56.5	$	4.7	8.3	%	$	58.9	$	6.0	10.2	%
Consumer		31.4		3.5	11.1	%		34.2		7.0	20.5	%
Residential real estate		19.2		4.4	22.9	%		18.2		3.9	21.4	%
Other		.9						2.1		0.1	4.8	%
Total (a)(b)	$	108.0	$	12.6	11.7	%	$	113.4	$	17.0	15.0	%
Valuation Reserves By Type
Impaired loans
Commercial / Commercial real estate	$	4.0	$	2.8	70.0	%	$	3.5	$	2.2	62.9	%
Consumer		5.8		1.3	22.4	%		12.3		5.8	47.2	%
Residential real estate		9.5		3.3	34.7	%		6.7		3.0	44.8	%
Total impaired loans (c)		19.3		7.4	38.3	%		22.5		11.0	48.9	%
Performing loans		88.7		5.2	5.9	%		90.9		6.0	6.6	%
Total (a)(b)	$	108.0	$	12.6	11.7	%	$	113.4	$	17.0	15.0	%
Valuation Reserves By Component
Fair value mark - impaired loans (b)(c)			$	7.4					$	11.0
Fair value mark - performing loans				2.4						2.1
National City reserve carryover on performing loans				2.2						2.1
Conforming provision for credit losses on performing loans (b)				0.6						1.8
Total (b)			$	12.6					$	17.0

The amounts in the table above represent credit impairment, market value and other adjustments reflected in purchase accounting.

Fair value mark - impaired loans	$	7.4
Fair value mark - performing loans		2.4
Write-offs of loan premiums/discounts		(.4	)
Total purchase accounting adjustment on National City loans	$	9.4

(a) National City sold $4.8 billion of loans subsequent to August 31, 2008. These sales were the primary reason for the decline in loans acquired.

(b) National City recorded loan loss provisions of $3.3 billion and charged off $1.8 billion of loans, net of recoveries, in the third and fourth quarters of 2008. These activities, combined with more detailed reviews of the National City loan portfolio, reduced the resulting impairments and valuation reserves recorded at closing relative to those estimated during due diligence.

(c) Approximately $4 billion or 7% of the National City commercial/commercial real estate portfolio, and approximately $15 billion or 30% of the National City consumer and residential mortgage portfolios were determined to be impaired at December 31, 2008.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Core and Distressed Loan Portfolios (Unaudited)

December 31, 2008	Core			Distressed
In millions	Portfolio			Portfolio (a)			Total
Total commercial	$	67,288		$	100		$	67,388
Commercial real estate
Real estate projects		12,765			4,284			17,049
Commercial mortgage		8,320			176			8,496
Total commercial real estate		21,085			4,460			25,545
Equipment lease financing		6,507			1,443			7,950
TOTAL COMMERCIAL LENDING		94,880			6,003			100,883
Consumer
Home equity
Lines of credit		18,679			5,360			24,039
Installment		10,599			3,652			14,251
Education		4,188						4,188
Automobile		1,667						1,667
Credit card and other unsecured lines of credit		3,163						3,163
Other		5,084			3			5,087
Total consumer		43,380			9,015			52,395
Residential real estate
Residential mortgage		9,339			9,433			18,772
Residential construction		1,307			1,687			2,994
Total residential real estate		10,646			11,120			21,766
TOTAL CONSUMER LENDING		54,026			20,135			74,161
Other		74			1,833			1,907
Unearned income		(959	)		(503	)		(1,462	)
Total (b)	$	148,021		$	27,468		$	175,489

(a) Includes residential real estate development loans, cross border leases, brokered home equity loans and certain residential real estate loans. These loans require special servicing and management oversight given current market conditions. The majority of these loans were from the National City acquisition.

(b) Amounts for core portfolio, distressed portfolio and total potfolio related to National City were $75.1 billion, $24.6 billion and $99.7 billion, respectively.

Details of Loans Held for Sale (Unaudited)

	December 31		September 30		June 30		March 31		December 31
In millions	2008 (c)		2008		2008		2008		2007
Commercial mortgage	$	2,158	$	1,505	$	1,864	$	2,268	$	2,116
Residential mortgage		1,962		99		102		112		117
Education (d)										1,525
Other		246		318		322		136		169
Total	$	4,366	$	1,922	$	2,288	$	2,516	$	3,927

(c) Amounts at December 31, 2008 included $2.2 billion of loans held for sale related to National City.

(d) During February 2008, substantially all education loans were transferred at lower of cost or market value from held for sale to the loan portfolio.

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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	December 31 2008			September 30 2008			June 30 2008			March 31 2008			December 31 2007
Beginning balance	$	1,053		$	988		$	865		$	830		$	717
Charge-offs:
Commercial		(109	)		(51	)		(71	)		(70	)		(60	)
Commercial real estate		(70	)		(60	)		(24	)		(11	)		(12	)
Equipment lease financing		(1	)		1			(2	)		(1	)
Consumer		(43	)		(39	)		(33	)		(28	)		(24	)
Residential real estate		(4	)		(2	)
Total charge-offs		(227	)		(151	)		(130	)		(110	)		(96	)
Recoveries:
Commercial		13			21			11			8			10
Commercial real estate		3			4			3
Equipment lease financing								1
Consumer		4			4			3			4			3
Total recoveries		20			29			18			12			13
Net charge-offs:
Commercial		(96	)		(30	)		(60	)		(62	)		(50	)
Commercial real estate		(67	)		(56	)		(21	)		(11	)		(12	)
Equipment lease financing		(1	)		1			(1	)		(1	)
Consumer		(39	)		(35	)		(30	)		(24	)		(21	)
Residential real estate		(4	)		(2	)
Total net charge-offs		(207	)		(122	)		(112	)		(98	)		(83	)
Provision for credit losses (a)		990			190			186			151			188
Acquired allowance (b)		2,224						20						15
Net change in allowance for unfunded loan commitments and letters of credit (c)		(143	)		(3	)		29			(18	)		(7	)
Ending balance	$	3,917		$	1,053		$	988		$	865		$	830
Supplemental Information
Net charge-offs to average loans (For the three months ended)		1.09	%		.66	%		.62	%		.57	%		.49	%
Allowance for loan and lease losses to total loans		2.23			1.40			1.35			1.22			1.21
Total commercial lending net charge-offs	$	(164	)	$	(85	)	$	(82	)	$	(74	)	$	(62	)
Total consumer lending net charge-offs		(43	)		(37	)		(30	)		(24	)		(21	)
Total net charge-offs	$	(207	)	$	(122	)	$	(112	)	$	(98	)	$	(83	)
Net charge-offs to average loans
Total commercial lending		1.45	%		.78	%		.77	%		.73	%		.63	%
Total consumer lending		.57			.49			.41			.34			.30

(a) Amounts include integration costs (conforming provision for credit losses) as follows: fourth quarter of 2008 - $504 million related to National City; second quarter of 2008 - $23 million related to Sterling; and fourth quarter of 2007 - $45 million related to Yardville.

(b) Fourth quarter of 2008 - National City; second quarter of 2008 - Sterling; fourth quarter of 2007 - Yardville.

(c) Fourth quarter of 2008 includes $154 million related to the National City conforming provision for credit losses.

Change in Allowance for Unfunded Loan Commitments and Letters of Credit

Three months ended - in millions	December 31 2008		September 30 2008		June 30 2008			March 31 2008		December 31 2007
Beginning balance	$	127	$	124	$	152		$	134	$	127
Acquired allowance - National City and Sterling		74				1
Net change in allowance for unfunded loan commitments and letters of credit		143		3		(29	)		18		7
Ending balance	$	344	$	127	$	124		$	152	$	134
Net Unfunded Commitments In millions	December 31 2008 (d)		September 30 2008		June 30 2008			March 31 2008		December 31 2007
Net unfunded commitments	$	104,029	$	57,094	$	51,558		$	52,426	$	53,347

(d) Amount at December 31, 2008 included $53 billion of net unfunded commitments related to National City.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited)

Nonperforming Assets by Type

In millions	December 31 2008 (a)			September 30 2008			June 30 2008			March 31 2008			December 31 2007
Nonaccrual loans
Commercial
Retail/wholesale	$	88		$	72		$	58		$	32		$	39
Manufacturing		141			45			34			47			35
Other service providers		114			76			66			68			48
Real estate related (b)		151			92			70			63			45
Financial services		23			15			10			16			15
Health care		37			8			7			4			4
Other		22			5			8			8			7
Total commercial		576			313			253			238			193
Commercial real estate
Real estate projects		659			391			330			251			184
Commercial mortgage		107			49			35			22			28
Total commercial real estate		766			440			365			273			212
Equipment lease financing		97			3			4			3			3
TOTAL COMMERCIAL LENDING		1,439			756			622			514			408
Consumer
Home equity		66			22			21			18			16
Other		4			3			3			1			1
Total consumer		70			25			24			19			17
Residential real estate
Residential mortgage		139			60			48			37			26
Residential construction		14						1			1			1
Total residential real estate		153			60			49			38			27
TOTAL CONSUMER LENDING		223			85			73			57			44
Total nonaccrual loans		1,662			841			695			571			452
Restructured loans											2			2
Total nonperforming loans		1,662			841			695			573			454
Foreclosed and other assets
Commercial lending		34			5			8			19			23
Consumer		11			10			11			10			8
Residential real estate		458			19			19			13			10
Total foreclosed and other assets		503			34			38			42			41
Total nonperforming assets (c) (d)	$	2,165		$	875		$	733		$	615		$	495
Nonperforming loans to total loans		.95	%		1.12	%		.95	%		.81	%		.66	%
Nonperforming assets to total loans and foreclosed assets		1.23			1.16			1.00			.87			.72
Nonperforming assets to total assets		.74			.60			.51			.44			.36
Allowance for loan and lease losses to nonperforming loans (e)		236			125			142			151			183
(a)    Amounts at December 31, 2008 include $722 million of nonperforming assets related to National City. See (a) on page 13. (b)    Includes loans related to customers in the real estate and construction industries.
(c)    Excludes equity management assets carried at estimated fair value:	$	26		$	34		$	44		$	5		$	4
(d)    Excludes loans held for sale carried at lower of cost or market value (amounts include troubled debt restructured assets of $5 million, $7 million, $20 million, and $21 million at December 31, 2008, September 30, 2008, June 30, 2008, and March 31, 2008, respectively).	$	78		$	39		$	59		$	35		$	25
(e)    The PNC legacy ratio was 95% at December 31, 2008, calculated as follows, in millions:
PNC consolidated allowance for loan and lease losses	$	3,917
Less: National City acquired allowance		2,224
Less: Conforming provision for credit losses		504
Add: National City amount transferred to allowance for unfunded loan commitments and letters of credit		154
PNC legacy allowance for loan and lease losses	$	1,343
PNC consolidated nonperforming loans	$	1,662
Less: National City nonperforming loans		250
PNC legacy nonperforming loans	$	1,412

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Nonperforming Loans - Core and Distressed Loan Portfolios

December 31, 2008 In millions	Core Portfolio		Distressed Portfolio (a)		Total Nonperforming Loans
Total commercial	$	576			$	576
Commercial real estate
Real estate projects		214		445		659
Commercial mortgage		107				107
Total commercial real estate		321		445		766
Equipment lease financing		97				97
TOTAL COMMERCIAL LENDING		994		445		1,439
Consumer
Home equity		37		29		66
Other		4				4
Total consumer		41		29		70
Residential real estate
Residential mortgage		89		50		139
Residential construction		1		13		14
Total residential real estate		90		63		153
TOTAL CONSUMER LENDING		131		92		223
Total nonperforming loans (b)	$	1,125	$	537	$	1,662

(a) See note (a) on page 9.

(b) Amounts for core portfolio, distressed portfolio and total nonperforming loans related to National City were $147 million, $103 million, and $250 million, respectively.

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THE PNC FINANCIAL SERVICES GROUP, INC.

Details of Nonperforming Assets (Unaudited) (Continued)

Change in Nonperforming Assets

In millions	Year ended
January 1, 2008	$	495
National City acquisition (a)		722
Sterling acquisition		9
Transferred in		1,981
Charge-offs/valuation adjustments		(491	)
Principal activity including payoffs		(381	)
Returned to performing		(127	)
Asset sales		(43	)
December 31, 2008	$	2,165

(a) Nonperforming assets added with the National City acquisition exclude those loans that we impaired in accordance with AICPA Statement of Position 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. We recorded such loans at estimated fair value and considered them to be performing, even if contractually past due, since certain purchase accounting adjustments will be accreted to interest income over time. The accretion will represent the difference between the expected cash flows and estimated fair value of the loans. This accounting treatment resulted in the return to performing status of $3.2 billion of loans previously classified as nonperforming by National City. The purchase accounting adjustments were estimated as of December 31, 2008 and such estimates may be refined during the first quarter of 2009.

Largest Individual Nonperforming Assets at December 31, 2008 (b)

In millions
Ranking	Outstandings			Industry
1	$	36		Manufacturing
2		33		Manufacturing
3		25		Construction
4		21		Manufacturing
5		20		Real Estate
6		19		Construction
7		14		Construction
8		14		Construction
9		14		Construction
10		14		Construction
Total	$	210
As a percent of total nonperforming assets		10	%

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

Page 13

THE PNC FINANCIAL SERVICES GROUP, INC.

Business Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, trust, investment management, residential mortgage banking, and cash management services to over 6 million consumer and small business customers within our primary geographic markets. Our customers are serviced through 2,589 offices in our branch network, including National City offices, the call center and the Internet. The branch network is located primarily in Pennsylvania, New Jersey, Washington, DC, Maryland, Virginia, Delaware, Ohio, Kentucky, Indiana, Illinois, Michigan, Missouri, Florida, and Wisconsin.

Retail Banking also serves as investment manager and trustee for employee benefit plans and charitable and endowment assets and provides nondiscretionary defined contribution plan services. These services are provided to individuals and corporations mainly within our primary geographic markets.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services 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 and services include foreign exchange, derivatives, loan syndications, mergers and acquisitions advisory and related services to middle-market companies, securities underwriting, and securities sales and trading. Corporate & Institutional Banking also provides commercial loan servicing, real estate advisory and technology solutions for the commercial real estate finance industry. Corporate & Institutional Banking provides products and services generally within our primary geographic markets, with certain products and services provided nationally.

Global Investment Servicing, formerly PFPC, is a leading full service provider of processing, technology and business solutions for the global investment industry. Securities services include custody, securities lending, and accounting and administration for funds registered under the 1940 Act and alternative investments. Investor services include transfer agency, subaccounting, and distribution. Financial advisor services include managed accounts and information management. This business segment serviced $2.0 trillion in total assets and 72 million shareholder accounts as of December 31, 2008 both domestically and internationally from locations in Ireland, Poland and Luxembourg.

BlackRock is one of the largest publicly traded investment management firms in the United States with $1.307 trillion of assets under management at December 31, 2008. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of fixed income, cash management, equity and balanced and alternative investment separate accounts and funds. In addition, BlackRock provides risk management, investment system outsourcing and financial advisory services globally to institutional investors. At December 31, 2008, PNC’s ownership interest in BlackRock was approximately 33%.

Page 14

THE PNC FINANCIAL SERVICES GROUP, INC.

Summary of Business Segment Earnings and Revenue (Unaudited) (a) (b)

	Year ended				Three months ended
In millions	December 31 2008		December 31 2007		December 31 2008			September 30 2008		June 30 2008		March 31 2008		December 31 2007
Earnings
Retail Banking (c)	$	429	$	876	$	15		$	79	$	140	$	195	$	211
Corporate & Institutional Banking		225		432		17			72		134		2		91
Global Investment Servicing (formerly, PFPC)		122		128		25			34		33		30		32
Other, including BlackRock (c) (e) (f)		106		31		(305	)		63		198		150		(156	)
Total consolidated net income (loss)	$	882	$	1,467	$	(248	)	$	248	$	505	$	377	$	178
Revenue (a)
Retail Banking (c)	$	3,608	$	3,580	$	878		$	882	$	889	$	959	$	943
Corporate & Institutional Banking		1,531		1,538		445			362		482		242		399
Global Investment Servicing (d)		916		831		214			237		237		228		214
Other, including BlackRock (c) (e) (f)		1,135		756		139			173		431		392		71
Total consolidated revenue	$	7,190	$	6,705	$	1,676		$	1,654	$	2,039	$	1,821	$	1,627

(a) Our business information is presented based on our management accounting practices and our management structure at year-end 2008. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses and management structure change.

(b) We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our Annual Report on Form 10-K for the year ended December 31, 2008 will provide additional business segment disclosures for BlackRock.

(c) Information for the periods presented reflects the reclassification of results for Hilliard Lyons, which we sold March 31, 2008, including the gain on its sale, from Retail Banking to “Other, including BlackRock.”

(d) Global Investment Servicing revenue represents the sum of servicing revenue and nonoperating income (expense) less debt financing costs.

(e) Includes earnings and gains or losses related to PNC’s equity interest in BlackRock and those related to Hilliard Lyons prior to its sale, integration costs, asset and liability management activities including net securities gains or losses and certain trading activities, equity management activities, differences between business segment performance reporting and financial statement reporting under generally accepted accounting principles (GAAP), corporate overhead and intercompany eliminations.

(f) The $504 million conforming provision for credit losses related to the National City acquisition was included in this business segment for the fourth quarter and full year 2008.

Period-end Employees	December 31 2008	September 30 2008	June 30 2008	March 31 2008	December 31 2007
PNC legacy full-time employees
Retail Banking	11,481	11,347	11,671	11,014	11,022
Corporate & Institutional Banking	2,294	2,305	2,310	2,218	2,290
Global Investment Servicing	4,934	4,969	4,946	4,865	4,784
Other
Operations & Technology	4,491	4,452	4,572	4,394	4,379
Staff Services and other	2,113	2,150	2,168	2,001	3,005
Total Other	6,604	6,602	6,740	6,395	7,384
Total full-time employees	25,313	25,223	25,667	24,492	25,480
PNC legacy part-time employees	2,908	2,906	2,938	2,843	2,840
Total National City legacy employees	31,374
Total	59,595	28,129	28,605	27,335	28,320

The period-end employee statistics disclosed for each PNC legacy business reflect staff directly employed by the respective business and exclude operations, technology and staff services employees. Sterling legacy employees are included in the Retail Banking, Corporate & Institutional Banking and Other businesses at December 31, 2008, September 30, 2008 and June 30, 2008. Statistics at December 31, 2007 reflect the reclassification of Hilliard Lyons employees from Retail Banking to Staff Services and other. As we acquired National City effective December 31, 2008, National City’s legacy employees are included in the aggregate and not under PNC legacy or by business segment.

Page 15

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (a)

	Year ended						Three months ended
Dollars in millions	December 31 2008			December 31 2007			December 31 2008			September 30 2008			June 30 2008			March 31 2008			December 31 2007
INCOME STATEMENT
Net interest income	$	1,992		$	2,062		$	502		$	493		$	499		$	498		$	542
Noninterest income		1,616			1,518			376			389			390			461			401
Total revenue		3,608			3,580			878			882			889			959			943
Provision for credit losses		612			138			262			156			90			104			70
Noninterest expense		2,284			2,045			584			593			569			538			537
Pretax earnings		712			1,397			32			133			230			317			336
Income taxes		283			521			17			54			90			122			125
Earnings	$	429		$	876		$	15		$	79		$	140		$	195		$	211
AVERAGE BALANCE SHEET
Loans
Consumer
Home equity	$	14,678		$	14,209		$	14,930		$	14,780		$	14,635		$	14,366		$	14,417
Indirect		2,050			1,897			2,070			2,034			2,071			2,026			2,031
Education		2,012			110			2,756			2,348			2,087			844			108
Other consumer		1,761			1,487			1,869			1,799			1,736			1,636			1,580
Total consumer		20,501			17,703			21,625			20,961			20,529			18,872			18,136
Commercial and commercial real estate (b)		14,677			12,534			14,395			14,750			15,175			14,393			14,020
Floor plan		997			978			999			923			1,045			1,020			983
Residential mortgage		2,362			1,992			2,227			2,339			2,443			2,440			2,500
Other		67			70			69			66			67			65			69
Total loans		38,604			33,277			39,315			39,039			39,259			36,790			35,708
Goodwill and other intangible assets		6,132			4,920			6,273			6,287			6,158			5,806			5,651
Loans held for sale		329			1,564			66			68			57			1,131			1,572
Other assets		1,513			2,182			1,378			1,550			1,465			1,661			2,316
Total assets	$	46,578		$	41,943		$	47,032		$	46,944		$	46,939		$	45,388		$	45,247
Deposits
Noninterest-bearing demand (c)	$	10,860		$	10,513		$	11,000		$	11,155		$	10,824		$	10,458		$	10,967
Interest-bearing demand		9,583			8,876			9,871			9,582			9,641			9,237			9,173
Money market		19,677			16,786			21,548			20,055			19,346			17,732			17,328
Total transaction deposits		40,120			36,175			42,419			40,792			39,811			37,427			37,468
Savings		2,701			2,678			2,655			2,739			2,800			2,609			2,651
Certificates of deposit		16,397			16,637			16,520			16,302			16,445			16,321			16,768
Total deposits		59,218			55,490			61,594			59,833			59,056			56,357			56,887
Other liabilities		329			417			273			377			318			348			382
Capital		3,773			3,481			3,909			3,789			3,833			3,560			3,548
Total funds	$	63,320		$	59,388		$	65,776		$	63,999		$	63,207		$	60,265		$	60,817
PERFORMANCE RATIOS
Return on average capital		11	%		25	%		2	%		8	%		15	%		22	%		24	%
Noninterest income to total revenue		45			42			43			44			44			48			43
Efficiency		63			57			67			67			64			56			57

(a) See notes (a) and (c) on page 15. PNC’s acquisition of National City effective December 31, 2008 did not impact Retail Banking for any of the periods presented. Information for all periods presented excludes the impact of Hilliard Lyons, which was sold on March 31, 2008, including the gain on its sale.

(b) Average balance for the third quarter of 2008 reflects a transfer of approximately $400 million of loans, or $225 million on average, to the Corporate & Institutional Banking business segment.

(c) Average balance for the first quarter of 2008 reflects a transfer of $140 million to the Corporate & Institutional Banking business segment.

Page 16

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)

	Year ended						Three months ended
	December 31 2008			December 31 2007			December 31 2008			September 30 2008			June 30 2008			March 31 2008			December 31 2007
Dollars in millions except as noted
OTHER INFORMATION (a) (b)
Credit-related statistics:
Commercial nonperforming assets							$	540		$	373		$	304		$	217		$	187
Consumer nonperforming assets								79			58			49			42			38
Total nonperforming assets							$	619		$	431		$	353		$	259		$	225
Commercial net charge-offs	$	239		$	71		$	87		$	46		$	45		$	61		$	24
Consumer net charge-offs		129			60			40			35			31			23			21
Total net charge-offs (c)	$	368		$	131		$	127		$	81		$	76		$	84		$	45
Commercial annualized net charge-off ratio		1.52	%		.52	%		2.24	%		1.16	%		1.11	%		1.59	%		.63	%
Consumer annualized net charge-off ratio		.56	%		.30	%		.67	%		.60	%		.54	%		.43	%		.40	%
Total annualized net charge-off ratio (c)		.95	%		.39	%		1.29	%		.83	%		.78	%		.92	%		.50	%
Other statistics:
Full-time employees								11,481			11,347			11,671			11,014			11,022
Part-time employees								2,363			2,358			2,371			2,322			2,298
ATMs								4,041			4,018			4,015			3,903			3,900
Branches (d)								1,148			1,142			1,153			1,096			1,109
ASSETS UNDER ADMINISTRATION (in billions) (e)
Assets under management
Personal							$	38		$	44		$	46		$	46		$	49
Institutional								19			20			21			20			20
Total							$	57		$	64		$	67		$	66		$	69
Asset Type
Equity							$	26		$	34		$	36		$	36		$	40
Fixed income								19			18			18			17			17
Liquidity/Other								12			12			13			13			12
Total							$	57		$	64		$	67		$	66		$	69
Nondiscretionary assets under administration
Personal							$	23		$	28		$	29		$	30		$	30
Institutional								64			77			81			80			82
Total							$	87		$	105		$	110		$	110		$	112
Asset Type
Equity							$	34		$	43		$	47		$	46		$	49
Fixed income								19			25			26			26			27
Liquidity/Other								34			37			37			38			36
Total							$	87		$	105		$	110		$	110		$	112

(a) Presented as of period-end, except for net charge-offs and annualized net charge-off ratios, which are for the three months and year ended. Information for all periods presented excludes the impact of National City, which PNC acquired effective December 31, 2008, and Hilliard Lyons, which was sold on March 31, 2008.

(b) Amounts subsequent to April 4, 2008 include the impact of Sterling.

(c) Increase in the first quarter of 2008 related to the impact of aligning small business and consumer loan charge-off policies.

(d) Excludes certain satellite branches that provide limited products and service hours.

(e) Excludes brokerage account assets.

Page 17

THE PNC FINANCIAL SERVICES GROUP, INC.

Retail Banking (Unaudited) (Continued)

Dollars in millions except as noted	December 31 2008			September 30 2008			June 30 2008 (b)			March 31 2008			December 31 2007 (b)
OTHER INFORMATION (a) (b)
Home equity portfolio credit statistics:
% of first lien positions (c)		38	%		39	%		39	%		39	%		39	%
Weighted average loan-to-value ratios (c)		73	%		73	%		72	%		72	%		73	%
Weighted average FICO scores (d)		727			727			726			725			727
Annualized net charge-off ratio (e)		.62	%		.58	%		.53	%		.35	%		.26	%
Loans 90 days past due		.58	%		.46	%		.46	%		.42	%		.37	%
Checking-related statistics:
Retail Banking checking relationships		2,432,000			2,431,000			2,328,000			2,305,000			2,272,000
Consumer DDA households using online banking		1,238,000			1,213,000			1,157,000			1,128,000			1,091,000
% of consumer DDA households using online banking		57	%		56	%		56	%		55	%		54	%
Consumer DDA households using online bill payment		882,000			841,000			768,000			723,000			667,000
% of consumer DDA households using online bill payment		41	%		39	%		37	%		35	%		33	%
Small business loans and managed deposits:
Small business loans (f)	$	13,483		$	13,656		$	13,582		$	13,778		$	13,049
Managed deposits:
On-balance sheet
Noninterest-bearing demand (g)	$	8,319		$	6,106		$	6,043		$	5,946		$	5,994
Interest-bearing demand		2,157			2,270			1,851			1,911			1,873
Money market		3,638			3,912			3,349			3,398			3,152
Certificates of deposit		880			1,077			879			1,030			1,068
Off-balance sheet (h)
Small business sweep checking		3,140			3,124			2,958			2,976			2,780
Total managed deposits	$	18,134		$	16,489		$	15,080		$	15,261		$	14,867
Brokerage statistics:
Financial consultants (i)		414			402			394			387			364
Full service brokerage offices		23			23			24			24			24
Brokerage account assets (billions)	$	15		$	16		$	18		$	18		$	19

(a) Presented as of period-end, except for the annualized net charge-off ratio, which is for the three months ended. Information for all periods presented excludes the impact of National City, which PNC acquired effective December 31, 2008, and Hilliard Lyons, which was sold on March 31, 2008.

(b) This information excludes the impact of acquisitions between PNC’s acquisition date and the date of conversion of the acquired companies’ data onto PNC’s financial and operational systems because such information was not available prior to the conversion date. Therefore, information presented above as of December 31, 2007 (except “Brokerage statistics”) excludes the impact of Yardville, which PNC acquired effective October 26, 2007 and converted during March 2008. Also, information presented above as of June 30, 2008 (except “Brokerage statistics”) excludes the impact of Sterling, which PNC acquired effective April 4, 2008 and converted during August 2008.

(c) Includes loans from acquired portfolios for which lien position and loan-to-value information was limited.

(d) Represents the most recent FICO scores we have on file.

(e) The full year 2008 and 2007 home equity annualized net charge-off ratio was .52% and .20%, respectively.

(f) See note (b) on page 16.

(g) The increase at December 31, 2008 compared with September 30, 2008 reflected large customer deposit activity in the last few days of December 2008. The balance at March 31, 2008 reflected a transfer of $140 million to the Corporate & Institutional Banking business segment.

(h) Represents small business balances. These balances are swept into liquidity products managed by other PNC business segments, the majority of which are off-balance sheet.

(i) Financial consultants provide services in full service brokerage offices and PNC traditional branches.

Page 18

THE PNC FINANCIAL SERVICES GROUP, INC.

Corporate & Institutional Banking (Unaudited) (a)

	Year ended						Three months ended
Dollars in millions except as noted	December 31 2008			December 31 2007			December 31 2008			September 30 2008			June 30 2008			March 31 2008			December 31 2007
INCOME STATEMENT
Net interest income	$	1,037		$	818		$	292		$	254		$	250		$	241		$	237
Noninterest income
Corporate service fees		545			564			118			159			145			123			137
Other		(51	)		156			35			(51	)		87			(122	)		25
Noninterest income		494			720			153			108			232			1			162
Total revenue		1,531			1,538			445			362			482			242			399
Provision for credit losses		366			125			214			31			72			49			69
Noninterest expense		882			818			221			236			210			215			222
Pretax earnings (loss)		283			595			10			95			200			(22	)		108
Income taxes (benefit)		58			163			(7	)		23			66			(24	)		17
Earnings	$	225		$	432		$	17		$	72		$	134		$	2		$	91
AVERAGE BALANCE SHEET
Loans
Corporate (b)	$	12,485		$	9,930		$	14,074		$	12,635		$	11,879		$	11,333		$	10,747
Commercial real estate (c)		5,631			4,408			6,043			5,828			5,501			5,146			4,938
Commercial - real estate related		3,022			2,390			3,233			3,015			2,939			2,902			2,637
Asset-based lending		5,274			4,595			5,556			5,321			5,241			4,974			4,748
Total loans (b)		26,412			21,323			28,906			26,799			25,560			24,355			23,070
Goodwill and other intangible assets		2,247			1,919			2,298			2,260			2,239			2,191			2,232
Loans held for sale		2,053			1,319			1,698			1,897			2,204			2,418			1,781
Other assets		6,282			4,491			7,025			5,930			5,889			6,281			4,641
Total assets	$	36,994		$	29,052		$	39,927		$	36,886		$	35,892		$	35,245		$	31,724
Deposits
Noninterest-bearing demand	$	7,598		$	7,301		$	8,013		$	7,502		$	7,393		$	7,481		$	7,851
Money market		5,216			4,784			5,268			5,268			5,301			5,026			4,995
Other		2,286			1,325			2,595			2,323			2,195			2,029			1,818
Total deposits		15,100			13,410			15,876			15,093			14,889			14,536			14,664
Other liabilities		5,479			3,347			6,200			5,128			4,905			5,679			4,452
Capital		2,616			2,152			2,858			2,705			2,436			2,462			2,357
Total funds	$	23,195		$	18,909		$	24,934		$	22,926		$	22,230		$	22,677		$	21,473
PERFORMANCE RATIOS
Return on average capital		9	%		20	%		2	%		11	%		22	%					15	%
Noninterest income to total revenue		32			47			34			30			48						41
Efficiency		58			53			50			65			44			89	%		56
COMMERCIAL MORTGAGE SERVICING PORTFOLIO (in billions)
Beginning of period	$	243		$	200		$	247		$	248		$	244		$	243		$	244
Acquisitions/additions		31			88			7			7			11			5			8
Repayments/transfers		(25	)		(45	)		(5	)		(8	)		(7	)		(4	)		(9	)
End of period	$	249		$	243		$	249		$	247		$	248		$	244		$	243
OTHER INFORMATION
Consolidated revenue from: (d)
Treasury Management	$	545		$	476		$	142		$	137		$	133		$	133		$	131
Capital Markets	$	336		$	290		$	76		$	80		$	104		$	76		$	74
Commercial mortgage securitizations and valuations (e)	$	(115	)	$	19		$	35		$	(56	)	$	49		$	(143	)	$	(12	)
Commercial mortgage loan servicing (f)		180			233			19			55			56			49			58
Commercial mortgage banking activities	$	65		$	252		$	54		$	(1	)	$	105		$	(94	)	$	46
Total loans (g)							$	28,996		$	28,232		$	26,075		$	24,981		$	23,861
Nonperforming assets (g)							$	749		$	391		$	329		$	317		$	243
Net charge-offs	$	168		$	70		$	79		$	39		$	35		$	15		$	39
Full-time employees (g)								2,294			2,305			2,310			2,218			2,290
Net carrying amount of commercial mortgage servicing rights (g)							$	654		$	698		$	681		$	678		$	694

(a) See note (a) on page 15. Information for all periods presented excludes the impact of National City, which PNC acquired effective December 31, 2008.

(b) Includes lease financing.

(c) Average balance for the third quarter of 2008 reflects a transfer of approximately $400 million of loans, or $225 million on average, from the Retail Banking business segment.

(d) Represents consolidated PNC amounts.

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

(f) Includes net interest income and noninterest income from loan servicing and ancillary services.

(g) Presented as of period end.

Page 19

THE PNC FINANCIAL SERVICES GROUP, INC.

Global Investment Servicing (Unaudited) (a)

	Year ended						Three months ended
Dollars in millions except as noted	December 31 2008			December 31 2007			December 31 2008			September 30 2008			June 30 2008			March 31 2008			December 31 2007
INCOME STATEMENT
Servicing revenue (b)	$	947		$	863		$	222		$	243		$	244		$	238		$	223
Operating expense (b)		728			637			174			187			186			181			167
Operating income		219			226			48			56			58			57			56
Debt financing		34			38			8			7			8			11			10
Nonoperating income (c)		3			6						1			1			1			1
Pretax earnings		188			194			40			50			51			47			47
Income taxes		66			66			15			16			18			17			15
Earnings	$	122		$	128		$	25		$	34		$	33		$	30		$	32
PERIOD-END BALANCE SHEET
Goodwill and other intangible assets							$	1,301		$	1,306		$	1,305		$	1,311		$	1,315
Other assets								3,977			3,195			1,301			1,388			1,161
Total assets							$	5,278		$	4,501		$	2,606		$	2,699		$	2,476
Debt financing							$	850		$	885		$	935		$	986		$	989
Other liabilities								3,737			2,927			1,005			1,070			865
Shareholder’s equity								691			689			666			643			622
Total funds							$	5,278		$	4,501		$	2,606		$	2,699		$	2,476
PERFORMANCE RATIOS
Return on average equity		18	%		23	%		14	%		20	%		20	%		19	%		21	%
Operating margin (d)		23			26			22			23			24			24			25
SERVICING STATISTICS (at period end)
Accounting/administration net fund assets (in billions)(e)
Domestic							$	764		$	806		$	862		$	875		$	869
Offshore								75			101			126			125			121
Total							$	839		$	907		$	988		$	1,000		$	990
Asset type (in billions)(e)
Money market							$	431		$	387		$	400		$	413		$	373
Equity								227			308			358			358			390
Fixed income								103			116			126			128			123
Other								78			96			104			101			104
Total							$	839		$	907		$	988		$	1,000		$	990
Custody fund assets (in billions)							$	379		$	415		$	471		$	476		$	500
Shareholder accounts (in millions)
Transfer agency								14			17			19			19			19
Subaccounting								58			56			55			57			53
Total								72			73			74			76			72
OTHER INFORMATION
Period-end full-time employees								4,934			4,969			4,946			4,865			4,784

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

(b) Certain out-of-pocket expense items which are then client billable are included in both servicing revenue and operating expense above, but offset each other entirely and therefore have no net effect on operating income. Distribution revenue and expenses which relate to 12b-1 fees that are received from certain fund clients for the payment of marketing, sales and service expenses also entirely offset each other, but are netted for presentation purposes above.

(c) Net of nonoperating expense.

(d) Total operating income divided by servicing revenue.

(e) Includes alternative investment net assets serviced.

Page 20

THE PNC FINANCIAL SERVICES GROUP, INC.

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 investment securities, less goodwill and certain other intangible assets (net of eligible deferred taxes).

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.

Basis point - One hundredth of a percentage point.

Charge-off - Process of removing a loan or portion of a loan from our balance sheet because it is considered uncollectible. We also record a charge-off when a loan is transferred to held for sale by reducing the carrying amount by the allowance for loan losses associated with such loan or, if the market value is less than its carrying amount, by the amount of that difference.

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

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

Custody assets - 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.

Distressed loan portfolio - Includes residential real estate development loans, cross border leases, brokered home equity loans and certain residential real estate loans. These loans require special servicing and management oversight given current market conditions. The majority of these loans were from the National City acquisition.

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

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

Economic 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. The economic capital measurement process involves converting a risk distribution to the capital that is required to support the risk, consistent with our target credit rating. As such, economic risk serves as a “common currency” of risk that allows us to compare different risks on a similar basis.

Page 21

THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms (Continued)

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 the sum of net interest income (GAAP basis) and noninterest income.

Fair value - The price that would be received to sell an asset or the price that would be paid to transfer a liability on the measurement date using the principal or most advantageous market for the asset or liability in an orderly transaction between willing market participants.

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

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

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

Impaired loans - Acquired loans determined to be credit impaired under AICPA Statement of Position 03-3, Accounting for Certain Loans or Debt Securities Acquired in a Transfer. Loans are determined to be impaired if there is evidence of credit deterioration since origination and for which it is probable that all contractually required payments receivable will not be collected.

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

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

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

Net interest income from loans and deposits - A management accounting assessment, using funds transfer pricing methodology, of the net interest contribution from loans and deposits.

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 the sum of net interest income (GAAP basis) and noninterest income.

Nonperforming assets - Nonperforming assets include nonaccrual loans, troubled debt restructured loans, foreclosed assets and other assets. We do not accrue interest income on assets classified as nonperforming.

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

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

Page 22

THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms (Continued)

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

Other-than-temporary impairment - Impairment occurs when the fair value of a security is less than its cost. The impairment is considered other-than-temporary when it is probable that the holder will be unable to collect all amounts due according to contractual terms of a debt security at acquisition. A few factors that are considered to determine whether a decline in fair value is other than temporary may include a) the length of the time and the extent to which the market value has been less than cost; b) the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer such as changes in technology that may impair the earnings potential of the investment or the discontinuance of a segment of the business that may affect the future earnings potential; or c) the intent and ability of the holder to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in market value. Securities determined to be other-than-temporary-impaired are written down to fair value with the loss recognized in income during the period in which the assessment is made. The fair value would take into account credit and liquidity risk.

Recovery - Cash proceeds received on a loan that we had previously charged off. We credit the amount received to the allowance for loan and lease losses.

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

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

Return on average common shareholders’ equity - Annualized net income less preferred stock dividends divided by average common shareholders’ equity.

Return on average tangible common shareholders’ equity - Annualized net income less preferred stock dividends divided by average common shareholders’ equity less goodwill and other intangible assets (net of deferred taxes for both taxable and nontaxable combinations), and excluding mortgage servicing rights.

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.

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

Tangible common equity ratio - Period-end common shareholders’ equity less goodwill and other intangible assets (net of eligible deferred taxes), and excluding mortgage servicing rights, divided by period-end assets less goodwill and other intangible assets (net of eligible deferred taxes), and excluding mortgage servicing rights.

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

Page 23

THE PNC FINANCIAL SERVICES GROUP, INC.

Glossary of Terms (Continued)

Tier 1 risk-based capital - Tier 1 risk-based capital equals: total shareholders’ equity, plus trust preferred capital securities, plus certain minority interests that are held by others; less goodwill and certain other intangible assets (net of eligible deferred taxes relating to nontaxable combinations), 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 risk-based capital purposes.

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

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

Total return swap - A non-traditional swap where one party agrees to pay the other the “total return” of a defined underlying asset (e.g., a loan), usually in return for receiving a stream of LIBOR-based cash flows. The total returns of the asset, including interest and any default shortfall, are passed through to the counterparty. The counterparty is therefore assuming the credit and economic risk of the underlying asset.

Total risk-based capital - Tier 1 risk-based capital plus qualifying subordinated debt and trust preferred securities, 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 money market and interest-bearing demand deposits and demand and other noninterest-bearing deposits.

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

Page 24

EX-99.2

The PNC Financial Services Group, Inc.

Fourth Quarter 2008

Earnings Conference Call

February 3, 2009

Exhibit 99.2

2

Cautionary Statement Regarding Forward-Looking

Information and Adjusted Information

This

presentation

includes

“snapshot”

information

about

PNC

used

by

way

of

illustration.

It

is

not

intended

as

a

full

business

or

financial

review

and

should

be

viewed

in

the

context

of

all

of

the

information

made

available

by

PNC

in

its

SEC

filings.

The

presentation

also

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

2007

Form

10-K

and

our

2008

Form

10-Qs,

including

in

the

Risk

Factors

and

Risk

Management

sections,

and

in

our

other

SEC

filings

(accessible

on

the

SEC’s

website

at

www.sec.gov

and

on

or

through

our

corporate

website

at

www.pnc.com/secfilings).

We

have

included

these

web

addresses

as

inactive

textual

references

only.

Information

on

these

websites is not part of this document.

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

certain

types

of

items.

This

information

supplements

our

results

as

reported

in

accordance

with

GAAP

and

should

not

be

viewed

in

isolation

from,

or

a

substitute

for,

our

GAAP

results.

We

provide

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.

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. 

In

certain

discussions,

we

may

also

provide

information

on

yields

and

margins

for

all

interest-earning

assets

calculated

using

net

interest

income

on

a

taxable-equivalent

basis

by

increasing

the

interest

income

earned

on

tax-exempt

assets

to

make

it

fully

equivalent

to

interest

income

earned

on

taxable

investments.

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.”

3

PNC’s Business Model Performed Relatively Well

The National City acquisition provides a tremendous

opportunity to leverage our business model

The acquisition allowed us to mark higher risk assets to fair

value under purchase accounting

While credit quality migration accelerated, our reserve

coverage ratios strengthened

The TARP Capital Purchase Program issuance enhanced our 

already strong capital levels

We remained core funded with substantial liquidity

Excitement and enthusiasm about the acquisition allows us

to continue our focus on meeting the needs of our clients

4

A Leader in Executing the Banking Basics

(32%)

11%

3 year CAGR

(28%)

9%

5 year CAGR

(37%)

15%

1 year

Pretax

pre-provision

earnings

growth

11%

14%

Average noninterest-bearing deposits

10%

8%

(3%)

7%

13%

Peers

12%

11%

6%

12%

19%

PNC

4Q08 growth versus 2Q07

Average total loans

Average total deposits

Average noninterest-bearing deposits

Average total deposits

Average total loans

4Q08 annualized linked quarter growth

(1)  Peer comparison source: SNL DataSource; Peers represents average of super-regional banks identified in the Appendix other than

PNC.  (2) Total revenue less noninterest expense.  Further information is provided in the Appendix.

PNC has remained “open

for business”

throughout

the credit crunch…

…and remains committed

to meeting the needs of

our clients…

Note:  PNC average balances and pretax pre-provision earnings were not impacted by the

National City acquisition, which closed on December 31, 2008.

…while delivering long

term value for our

shareholders.

1

2

5

Key Messages

Rapidly weakening economic conditions impacted

results

Strengthened capital, liquidity and loan loss reserve

coverage

Created significant positive operating leverage

offsetting a substantial portion of increased credit costs

Remained focused on the balance sheet,

transformation process underway

Financial projections of acquisition exceed original

expectations

6

Capital and Liquidity

PNC Is Well-Positioned in Terms of Capital and Liquidity.

21%

88%

5.1%

3.6%

8.2%

Sept 30

2008

15%

91%

4.1%

2.8%

9.7%

Dec 31

2008

Substantial 12/31/08 liquidity position enabling PNC to meet all

2009 debt maturities

Dec 31

2007

Key Capital Ratios

6.8%

Tier 1 risk-based

4.7%

Tangible common equity

4.8%

Tangible common equity excluding accumulated

other comprehensive loss

2,3

22%

Investment securities to total assets

83%

Loans to deposits

Key Liquidity Ratios

(1)

December

31,

2008

estimated.

(2)

Common

shareholders’

equity

less

goodwill

and

other

intangible

assets

net

of

eligible

deferred

taxes

(excluding

mortgage

servicing

rights)

divided

by

period-end

assets

less

goodwill

and

other

intangible

assets

net

of

eligible

deferred

taxes

(excluding

mortgage

servicing

rights).

(3)

Accumulated

other

comprehensive

loss

as

of

12/31/08,

9/30/08,

and

12/31/07

was

$3.9

billion,

$2.2

billion,

and

$147

million,

respectively.

Adjusted

percentages

are

reconciled

to

GAAP

in

the

Appendix.

1

2

7

$5.5

$3.7

$6.7

$4.3

$7.2

$4.4

2004

2007

2008

PNC’s Disciplined Growth Strategies Resulted in Significant

Positive Operating Leverage.

Creating Positive Operating Leverage

Expense

+3%

Revenue

+7%

Operating

Leverage

+4%

2007-2008

Revenue

+7%

Expense

+5%

Operating

Leverage

+2%

2004-2007 CAGR

$1.8

$2.4

$2.8

Revenue

Expense

Pretax pre-provision earnings

(1)

Total

revenue

less

noninterest

expense.

Further

information

is

provided

in

the

Appendix.

1

8

PNC’s Balance Sheet Composition

PNC’s Commitment to Prudent Risk Management Remains a Top

Priority for Creating Long Term Value.

100%

8.7

7.1

17.9

66.3%

100%

15.1

60.3

14.9

1.5

8.2%

2008 % of total

$291.1

25.4

20.6

52.2

$192.9

$291.1

43.8

175.5

43.5

4.4

$23.9

Dec 31

2008

100%

10.7

7.5

22.3

59.5%

100%

18.7

49.2

21.8

2.8

7.5%

2007 % of total

Total liabilities and shareholders’

equity

Shareholders’

equity

Other liabilities and interests in consolidated entities

Total borrowed funds

Deposits

Total assets

Other assets and allowance for loan and lease losses

Loans, net of unearned income

Investment securities

Loans held for sale

Cash and short-term investments

in billions

9

Credit Quality Migration

(1) As of quarter end, except net charge-off percentage.  Net charge-off percentage is annualized.  Information for December 31, 2008,

other

than

net

charge-offs,

includes

the

impact

of

National

City,

which

we

acquired

as

of

December

31,

2008.

2008

151

142

125

236

Allowance for loan and lease losses

to nonperforming loans

1.22

1.35

1.40

2.23

Allowance for loan and lease losses

to total loans

.44

.51

.60

.74

Nonperforming assets to total assets

.87

1.00

1.16

1.23

Nonperforming assets to total loans

and foreclosed assets

.81

.95

1.12

.95

Nonperforming loans to total loans

.57

.62

.66

1.09

Net charge-offs to average loans

Mar 31

June 30

Sept 30

Dec 31

Asset quality ratios , %

Credit Quality Migration, While Accelerating, Remains Manageable

Credit Quality Migration, While Accelerating, Remains Manageable

in Light of Our Ability to Maintain a Strong Capital Position.

in Light of Our Ability to Maintain a Strong Capital Position.

1

10

Investment Securities

$(5.4)

100%

$43.5

Total investment securities

3.1 years

3.1

3.2

5.3

8.7

$23.2

Fair

value

Dec 31, 2008

Expected weighted average life

(.1)

(.4)

(.9)

(4.4)

$.4

Net unrealized

gain/(loss)

20

Non-agency residential mortgage-backed

7

Other (primarily municipals)

12

Commercial mortgage-backed

8

Asset-backed

53%

% of

total

Agency residential mortgage-backed

in billions

(1) Excluding corporate stocks and other included in “Other.”

(2) Rated by at least two nationally recognized rating agencies.

PNC’s Investment Securities Portfolio Is High Quality.

2008 other-than-temporary impairments of $314 million, including $74 million of

FNMA/FHLMC preferred stock

$180 million, or 75% of the remaining impairments, were attributable to changes in

market spreads and market illiquidity

91%

of

the

portfolio

is

Agency

or

AAA-rated

equivalent

1

2

11

A Financially Compelling Transaction

15% +

15% +

Estimated internal rate of return

Significant early client wins across the franchise

$2.1 billion

$2.4 billion

Performing loans

$11.0 billion

$7.4 billion

Impaired loans

$1.2 billion

$1.2 billion +

Estimated annualized cost reduction

$1.8 billion

$504 million

Conforming credit provision adjustment

2010

Estimates at

announcement²

2009

Closing

Estimated year of accretion to GAAP EPS

Purchase accounting adjustments:

National City acquisition  –

financial assessment

PNC Is Increasingly Confident about the Long Term Benefits of the

Acquisition.

(1) The acquisition of National City was announced on October 24, 2008 and closed on December 31, 2008.  (2) These estimates were

based on pre-announcement due diligence using interim financial information, including loan balances as of August 31, 2008.

1

12

2009 Assumptions

Severe recessionary conditions

Continued credit quality migration

Continued growth in total revenue driven by net

interest income

Well controlled expenses while investing in growth

initiatives

Enhanced capital ratios

13

Major Integration Accomplishments

A Significant Amount of Progress Has Been Made and We Are on

A Significant Amount of Progress Has Been Made and We Are on

Track to Meet Our Next Objectives.

Track to Meet Our Next Objectives.

Appointed integration leaders and teams

Announced leadership team and regional executives

Appointed new Chief Executive Officer of the mortgage business

Announced transaction on Oct 24, 2008

Kicked off extensive deposit gathering campaign

Conducted 15+ town hall meetings across the new franchise

Systems decisions nearly final

Launched comprehensive customer and employee communications

Conversion timelines have been set

Product and data mapping nearly complete

Announced business, market, and staff organizations

Closed transaction, purchase accounting marks significantly de-risked the balance sheet

14

Key Integration Objectives

Purchase accounting marks finalized, credit approval and

loan/deposit pricing processes aligned

Return the balance sheet

to a moderate risk profile

Distressed and core loan portfolios identified

Systems application selection nearly complete and

conversion timelines set

Schedule for branch conversion near completion

Process underway, expect significant portion to be achieved

through attrition and elimination of open positions

Cost save plan being implemented

Status as of Feb 3, 2009

Identify distressed loans

and maximize value

Convert branch network

Achieve $1.2 billion of

annualized cost saves

Integrate technology

platforms

Eliminate 5,800 positions

across organization

Objective

The Foundation for a Smooth and Successful Integration Has Been

Established and Communicated.

15

Significant Retail and Wealth Management

Revenue Opportunity

Combine products and platforms for full impact

delivery across our attractive high net worth

markets

Gain synergies by leveraging the strengths of

personal wealth areas and institutional product sets

Leverage our established branch referral processes

$110B AUM

$125B AUA

$57B AUM

$87B AUA

Asset

management

Expand touch point opportunities to increase our

brand awareness and convenience

6,232

4,041

ATMs

Leverage one of the largest branch distribution

networks in the U.S.

2,589

1,148

Branches

2.9 million

Legacy PNC

6+ million

PNC

Allows for deeper penetration of our product set,

especially fee based and payment business related

products

Combine focus on on-line innovation and platform

integration efficiencies

Leverage strengths in small business client area to

provide highly profitable sources of funding

Consumer

and small

business

customers

Opportunity

As

of

December

31,

2008.

PNC

acquired

National

City

Corporation

on

December

31,

2008.

(1)

Does

not

include

and

(2)

includes

the

impact

of

National

City.

(3)

None

of

anticipated

branch

divestitures

or

closings

assumed.

1

3

3

2

16

Significant Corporate & Institutional

Banking Revenue Opportunity

Combine expertise across top industries

Retain and deepen long-term relationships

Right size portfolios to meet risk/return criteria

$45 billion

$17 billion

Commercial

loans (excluding

real estate)

Combine strengths across DUS, FHA, Mezzanine,

REIT, and low income housing capabilities

Scale back residential development exposures

$28 billion

$9 billion

Commercial

real estate

loans

Leverage established deposit gathering strategy

and relationship based approach

$27 billion

$15 billion

Deposits

Leverage our demonstrated cross selling

capabilities

Significant opportunity to leverage our range of

relationship-based products and services

$400 million

$336 million

Capital

markets

revenue

Leverage combined strengths in the middle market

Opportunity to significantly improve risk adjusted

returns through fee-based product offerings

$975 million

$545 million

Treasury

management

revenue

Legacy PNC

PNC

Opportunity

As of or for the year ended December 31, 2008.  PNC acquired National City Corporation on December 31, 2008.  (1) Does not include

and (2) includes the impact of National City.  Revenue items include PNC estimates of National City revenue as if the acquisition had

been completed at the beginning of 2008.

1

2

17

A relentless focus on implementing the PNC model

Commitment to returning to a moderate risk profile

Grow high quality revenue streams

A focus on continuous improvement

Disciplined approach to capital management

Strong execution capabilities

Summary

PNC Continues to Build a Great Company.

PNC Continues to Build a Great Company.

18

Cautionary Statement Regarding Forward-Looking

Information

Appendix

This

presentation

includes

“snapshot”

information

about

PNC

used

by

way

of

illustration

and

is

not

intended

as

a

full

business

or

financial

review.

It

should

not

be

viewed

in

isolation

but

rather

in

the

context

of

all

of

the

information

made

available

by

PNC

in

its

SEC

filings. 

We

also

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”,

“target”,

“potential”

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

2007

Form

10-K

and

our

2008

Form

10-Qs,

including

in

the

Risk

Factors

and

Risk

Management

sections

of

those

reports,

and

in

our

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/secfilings.

We

have

included

these

web

addresses

as

inactive

textual

references

only.

Information

on

these

websites

is

not

part

of

this

document.

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:

o

Changes

in

interest

rates

and

valuations

in

the

debt,

equity

and

other

financial

markets.

o

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.

o

Actions

by

the

Federal

Reserve

and

other

government

agencies,

including

those

that

impact

money

supply

and

market

interest

rates.

o

Changes

in

our

customers’,

suppliers’

and

other

counterparties’

performance

in

general

and

their

creditworthiness

in

particular.

o

Changes

in

customer

preferences

and

behavior,

whether

as

a

result

of

changing

business

and

economic

conditions

or

other

factors.

o

Changes

resulting

from

the

Emergency

Economic

Stabilization

Act

of

2008,

and

other

legislative

and

regulatory

developments

in

response

to

the

current

economic

and

financial

situation,

including

conditions

imposed

as

a

result

of

our

participation

in

the

Capital

Purchase

Program.

A

continuation

of

recent

turbulence

in

significant

portions

of

the

US

and

global

financial

markets,

particularly

if

it

worsens,

could

impact

our

performance,

both

directly

by

affecting

our

revenues

and

the

value

of

our

assets

and

liabilities

and

indirectly

by

affecting

our

counterparties

and

the

economy generally.

Our

business

and

financial

performance

could

be

impacted

as

the

financial

industry

restructures

in

the

current

environment,

both

by

changes

in

the

creditworthiness

and

performance

of

our

counterparties

and

by

changes

in

the

competitive

landscape.

19

Cautionary Statement Regarding Forward-Looking

Information (continued)

Appendix

Given

current

economic

and

financial

market

conditions,

our

forward-looking

financial

statements

are

subject

to

the

risk

that

these

conditions

will

be

substantially

different

than

we

are

currently

expecting.

These

statements

are

based

on

our

current

expectations

that

interest

rates

will

remain

low

through

2009

with

continued

wide

market

credit

spreads,

and

our

view

that

national

economic

trends

currently

point

to

a

continuation

of

severe

recessionary

conditions

in

2009

followed

by

a

subdued

recovery.

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.

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,

the

protection

of

confidential

customer

information,

and

other

aspects

of

the

financial

institution

industry;

and

(e)

changes

in

accounting

policies

and

principles.

Our

issuance

of

securities

to

the

United

States

Treasury

may

limit

our

ability

to

return

capital

to

our

shareholders

and

is

dilutive

to

our

common

shares.

If

we

are

unable

previously

to

redeem

the

shares,

the

dividend

rate

increases

substantially

after

five

years.

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.

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

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.

Our

ability

to

implement

our

business

initiatives

and

strategies

could

affect

our

financial

performance

over

the

next

several

years.

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

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

filings

with

the

SEC,

including

in

the

Risk

Factors

sections

of

BlackRock’s

reports.

BlackRock’s

SEC

filings

are

accessible

on

the

SEC’s

website

and

on

or

through

BlackRock’s

website

at

www.blackrock.com. 

This

material

is

referenced

for

informational

purposes

only

and

should

not

be

deemed

to

constitute

a

part

of

this

document.

20

Cautionary Statement Regarding Forward-Looking

Information (continued)

Appendix

In

addition,

our

recent

acquisition

of

National

City

Corporation

(“National

City”)

presents

us

with

a

number

of

risks

and

uncertainties

related

both

to

the

acquisition

transaction

itself

and

to

the

integration

of

the

acquired

businesses

into

PNC.

These

risks

and

uncertainties

include

the

following:

The

transaction

may

be

substantially

more

expensive

to

complete

(including

the

required

divestitures

and

the

integration

of

National

City’s

businesses)

and

the

anticipated

benefits,

including

anticipated

cost

savings

and

strategic

gains,

may

be

significantly

harder

or

take

longer

to

achieve

than

expected

or

may

not

be

achieved

in

their

entirety

as

a

result

of

unexpected

factors

or

events.

Our

ability

to

achieve

anticipated

results

from

this

transaction

is

dependent

on

the

state

going

forward

of

the

economic

and

financial

markets,

which

have

been

under

significant

stress

recently.

Specifically,

we

may

incur

more

credit

losses

from

National

City’s

loan

portfolio

than

expected.

Other

issues

related

to

achieving

anticipated

financial

results

include

the

possibility

that

deposit

attrition

or

attrition

in

key

client,

partner

and

other

relationships

may

be

greater

than

expected.

Litigation

and

governmental

investigations

currently

pending

against

National

City,

as

well

as

others

that

may

be

filed

or

commenced

as

a

result

of

this

transaction

or

otherwise,

could

impact

the

timing

or

realization

of

anticipated

benefits

to

PNC

or

otherwise

adversely

impact

our

financial

results. 

Our

ability

to

achieve

anticipated

results

is

also

dependent

on

our

ability

to

bring

National

City’s

systems,

operating

models,

and

controls

into

conformity

with

ours

and

to

do

so

on

our

planned

time

schedule.

The

integration

of

National

City’s

business

and

operations

into

PNC,

which

will

include

conversion

of

National

City’s

different

systems

and

procedures,

may

take

longer

than

anticipated

or

be

more

costly

than

anticipated

or

have

unanticipated

adverse

results

relating

to

National

City’s

or

PNC’s

existing

businesses.

PNC’s

ability

to

integrate

National

City

successfully

may

be

adversely

affected

by

the

fact

that

this

transaction

will

result

in

PNC

entering

several

markets

where

PNC

did

not

previously

have

any

meaningful

retail

presence.

In

addition

to

the

National

City

transaction,

we

grow

our

business

from

time

to

time

by

acquiring

other

financial

services

companies.

Acquisitions

in

general

present

us

with

risks,

in

addition

to

those

presented

by

the

nature

of

the

business

acquired,

similar

to

some

or

all

of

those

described

above

relating

to

the

National

City

acquisition.

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,

National

City’s,

or

other

company’s

actual

or

anticipated

results.

21

Non-GAAP to GAAP Reconcilement

Appendix

In millions, except percentages

Tier 1 risk-based capital ratio (a)

December 31

2008

Tier 1 risk-based capital

$24,328

Less: TARP issuance

7,579

Tier 1 risk-based capital less TARP issuance

$16,749

Risk weighted assets (assumes no decrease in assets without TARP

issuance)

$249,498

Tier 1 risk-based capital ratio as reported

9.7

%

Less: TARP issuance

3.0

Tier 1 risk-based capital ratio as adjusted

6.7

%

Tangible common equity ratio (a, b)

December 31

September 30

December 31

2008

2008

2007

Common shareholders' equity

$17,490

$13,712

$14,847

Add back: accumulated other comprehensive loss (AOCL)

3,949

2,230

147

Common shareholders' equity, excluding AOCL

$21,439

$15,942

$14,994

Goodwill and other intangible assets, net of deferred taxes

$9,737

$8,812

$8,734

Total assets

$291,081

$145,610

$138,920

Add back: AOCL assets

3,282

2,107

(30)

Total assets, excluding AOCL

$294,363

$147,717

$138,890

Tangible common equity ratio, as reported

2.8

%

3.6

%

4.7

%

Add back: AOCL assets

1.3

1.5

.1

Tangible common equity ratio, as adjusted

4.1

%

5.1

%

4.8

%

(a) December 31, 2008 ratios are estimated.

(b)

Common

shareholders’

equity

less

goodwill

and

other

intangible

assets

net

of

eligible

deferred

taxes

(excluding

mortgage

servicing

rights)

divided

by

period-end

assets

less

goodwill

and

other

intangible

assets

net

of

eligible

deferred

taxes

(excluding

mortgage servicing rights).

22

Non-GAAP to GAAP Reconcilement

Appendix

In millions, except per share data

THREE MONTHS ENDED

Adjustments,

Net

Diluted

Adjustments,

Net

Diluted

Pretax

Income

EPS

Pretax

Income

EPS

Net income (loss), as reported

$(248)

$(.77)

$248

$.71

Adjustments:

   Conforming provision for credit losses - National City

$504

328

.94

   Other integration costs

81

52

.15

$14

10

.02

Net income, as adjusted

$132

$.32

$258

$.73

Adjustments,

Net

Diluted

Pretax

Income

EPS

Net income, as reported

$178

$.52

Adjustments:

   Integration costs

$79

(a)

50

.15

Net income, as adjusted

$228

$.67

YEAR ENDED

Adjustments,

Net

Diluted

Adjustments,

Net

Diluted

Pretax

Income

EPS

Pretax

Income

EPS

Net income, as reported

$882

$2.46

$1,467

$4.35

Adjustments:

   Conforming provision for credit losses - National City

$504

328

.95

   Other integration costs

145

(b)

94

.27

$151

(a)

99

.30

Net income, as adjusted

$1,304

$3.68

$1,566

$4.65

(a)

Includes the $45 million conforming provision for credit losses related to the Yardville acquisition.

(b)

Includes the $23 million conforming provision for credit losses related to the Sterling acquisition.

December 31, 2008

September 30, 2008

December 31, 2007

December 31, 2008

December 31, 2007

For the year ended December 31, 

in millions

2003

2004

2005

2006 (c)

2007

2008

'04-'07

CAGR

'07-'08

Change

'05-'08

CAGR

'03-'08

CAGR

Total revenue

$5,253

$5,541

$6,327

$8,572

$6,705

$7,190

7%

7%

Noninterest expense

3,476

3,712

4,306

4,443

4,296

4,430

5%

3%

Pretax pre-provision earnings

$1,777

$1,829

$2,021

$4,129

$2,409

$2,760

15%

11%

9%

Operating leverage

2%

4%

(c) Includes the impact on both revenue and expense of the BlackRock/MLIM transaction.

23

The PNC Financial Services Group, Inc.

PNC

BB&T Corporation

BBT

Comerica

CMA

Fifth Third Bancorp

FITB

KeyCorp

KEY

Regions Financial

RF

SunTrust Banks, Inc.

STI

U.S. Bancorp

USB

Wells Fargo & Company

WFC

Ticker

Peer Group of Super-Regional Banks

Appendix