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

December 8, 2009

Date of Report (date of earliest event reported)

THE PNC FINANCIAL SERVICES GROUP, INC.

(exact name of registrant as specified in its charter)

Pennsylvania	Commission File Number	25-1435979
(state or other jurisdiction of incorporation or organization)	001-09718	(I.R.S. Employer Identification Number)

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 December 8, 2009, James E. Rohr, Chairman and Chief Executive Officer of The PNC Financial Services Group, Inc. (the “Corporation”), gave a presentation to investors at the Goldman Sachs US Financial Services Conference in New York. This presentation was accompanied by a series of electronic slides that included information pertaining to the financial results and business strategies of the Corporation. A copy of these slides and related material is included in this report as Exhibit 99.1 and is furnished herewith.

Item 9.01. Financial Statements and Exhibits.

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

2

SIGNATURE

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

	THE PNC FINANCIAL SERVICES GROUP, INC.
	(Registrant)
Date: December 8, 2009	By:	/s/    SAMUEL R. PATTERSON
		Samuel R. Patterson
		Controller

3

EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Electronic presentation slides and related material for the Goldman Sachs US Financial Services Conference on December 8, 2009	Furnished herewith.

4

EX-99.1

The PNC Financial Services Group, Inc.

Goldman Sachs

Financial Services Conference

December 8, 2009

Exhibit 99.1

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, capital and liquidity levels, 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 some of these factors in our 2008 Form 10-K and

2009 Form 10-Qs, including in the Risk Factors and Risk Management sections of those reports, 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 web addresses

here and elsewhere in this presentation 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 may 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

believe that this additional information and the reconciliations we provide may be useful to investors, analysts, regulators and others as

they evaluate the impact of these items on our results for the periods presented.

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 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

Key Messages

PNC’s business model has performed well in 2009

PNC is well-positioned to navigate the uncertain

environment

PNC has realistic opportunities for growth

PNC’s

Business

Model

Has

Delivered

Solid

Results

and

Is

Expected

to

Deliver

Growth

During

the

Economic

Recovery.

4

2009 Highlights

1

Continued to transition the balance sheet by:

-

Realigning our deposit mix

-

Maintaining strong bank liquidity

-

Repositioning the investment securities portfolio

-

Increasing reserves

-

Strengthening capital ratios

Posted year-to-date net income of $1.3 billion

Captured more than $800 million of annualized integration cost

savings on a 3Q09 basis

Successfully completed first phase of National City conversion in

November

PNC’s Performance Validates Realistic Opportunities for Growth.

(1) Highlights as of or for the nine months ended September 30, 2009 except for conversion as noted.

Business

Model

Performance -

2009

5

2009 National Recognition

Business

Model

Performance -

2009

“BusinessWeek 50”

top performing companies

Most

Admired

Companies,

Fortune

magazine

One of America’s Most Shareholder-Friendly Companies,

Institutional

Investor

magazine

100 Best

Companies

for

Working

Mothers,

Working

Mother

Top

50

Companies

for

Executive

Women,

National

Association

for

Female Executives

Top

125

Companies

for

Employee

Training,

Training

magazine

CIO 100 for Technology

Excellence,

CIO

magazine

Committee for Economic Development (CED) Trustee

Leadership Award for PNC’s Grow Up Great Early Education

Initiative

6

An Environment of Change

Economic,

Regulatory

and Operating

Environment

Economic environment

-

Subdued recovery

-

Unemployment

-

Interest rates

Regulatory environment

-

PNC’s culture and principles

-

Impact on competitors

-

Consumer and small business needs

Operating environment

-

Changing consumer behaviors

-

Meeting needs of businesses

PNC’s

Vision,

Values

and

Business

Model

Position

Us

Well

to

Successfully

Navigate

the

Uncertain

Environment.

7

PNC’s Framework for Success

Execute on and deliver the PNC

business model

Capitalize on integration

opportunities

Emphasize continuous

improvement culture

Leverage credit that meets our

risk/return criteria

Focus on cross selling PNC’s deep

product offerings

Focus “front door”

on risk-adjusted

returns

Leverage “back door”

credit

liquidation capabilities

Maximize credit portfolio value

Reposition deposit gathering

strategies

Action Plans

0.62%

>$800 million

44%

2.3%

87%

September 30,

2009

1.30%+

$1.2 billion

>50%

0.3%-0.5%

80%-90%

Target

Return on average

assets

(nine months ended)

Key Metrics

Loan to deposit

ratio

(as of)

Provision to

average loans

(nine months ended,

annualized)

Noninterest

income/total

revenue

(nine months ended)

Integration cost

savings

(third quarter,

annualized)

Executing our

strategies

PNC Business

Model

Staying core

funded

Returning to a

moderate risk

profile

Growing high

quality, diverse

revenue

streams

Creating

positive

operating

leverage

PNC’s

Plans for

Growth

8

Realistic Opportunities for Growth

Leverage product

depth, cross sell

capabilities,

balance sheet and

improved markets

PNC Is Well-Positioned for Growth.

Return to a

moderate risk

profile

Credit

Exceed cost saves

and normalize

expenses

Expense

Revenue

PNC’s

Plans for

Growth

9

Total franchise

YTD09 sales 130% of YTD goal

3Q09 sales up 21% vs. 1Q09

YTD09 sales 143% of YTD goal

All markets above YTD goal

YTD09 sales 113% of YTD goal

75% of markets above YTD goal

Legacy PNC markets¹

Legacy

National

City

markets

²

Product Sales Across the Franchise

Corporate

Banking

Wealth

Management

Institutional

Investments

Business Bank-

Commercial

Sept. 09 YTD annualized sales

contribution by region

Sales highlights

Products

Legacy PNC

markets

¹

61%

Legacy National City

markets

²

39%

PNC Has Significant Sales Momentum Going into 2010.

PNC Has Significant Sales Momentum Going into 2010.

(1) Includes overlap markets where PNC had a higher deposit share than National City prior to the acquisition. (2) Includes overlap

markets where National City had a higher deposit share than PNC prior to the acquisition.

PNC’s

Plans for

Growth

10

Cross-Sell Across the Franchise

PNC Is Leading the Way in Delivering the Brand to Our Acquired

PNC Is Leading the Way in Delivering the Brand to Our Acquired

Markets.

Markets.

% of year-to-date cross sell goal through September 30, 2009

116%

113%

114%

79%

137%

118%

Legacy National

City

markets

¹

Legacy PNC

markets

²

Total PNC

(1) Includes overlap markets where National City had a higher deposit share than PNC prior to the acquisition. (2) Includes overlap

markets where PNC had a higher deposit share than National City prior to the acquisition.

Treasury management

Capital markets

PNC’s

Plans for

Growth

11

PNC access schools

Retail and Mortgage Banking Opportunities

PNC’s History of Building and Deepening Relationships Creates

Tremendous Opportunity Across the Consumer Space.

University banking potential

Leveraging mortgage banking

Estimated #

of students

295,000

415,000

3.3 million

2.0 million

PNC alliances

PNC target market

schools

Other potential

HH with multiservices

Average deposit balance

Average HH DDA profit

Incremental value of a Legacy PNC mortgage

relationship vs. a non-mortgage relationship

+37%

+42%

+64%

% difference with

a

mortgage relationship

PNC’s

Plans for

Growth

12

(6)

(5)

(4)

(3)

(2)

(1)

0

1

2

3

4

0%

1%

2%

3%

4%

5%

6%

Balance Sheet Management

PNC Duration

of Equity

(At Quarter End)

Fed Funds

Effective Rate

(At Quarter End)

2007

2008

2009

1.4%

100 bps increase

(5.5%)

100 bps decrease

Effect

on

NII

in

2

nd

year

from

gradual interest rate change

over preceding 12 months

Effect on NII in 1

st

year from

gradual interest rate change

over following 12 months

PNC 3Q09 NII Sensitivity

(2.0%)

.9%

100 bps decrease

100 bps increase

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

PNC’s Balance Sheet Is Well-Positioned to Take Advantage of

Improvement in Loan Demand.

PNC’s

Plans for

Growth

13

Integration Cost Savings

Year-to-date cost savings of more than $460

million

Implemented common vendor and expense

policies and approval guidelines

Implementing multi-year plan to help

maximize the value of physical space owned

and leased

Began consolidation of 93 mortgage

operations sites into two centers -

Chicago and

Pittsburgh

Streamlining systems and support functions –

operations, marketing,  communications,

technology, finance, other staff

Completed divestiture of 61 Western

Pennsylvania National City branches in 3Q09

Integration cost savings highlights

Captured cost saves

$120

$140

$200

1Q09

2Q09

3Q09

Expect to exceed original $1.2 billion

annualized cost save goal

PNC’s

Plans for

Growth

14

Loss

coverage

²

:

Commercial real estate 10%

Commercial 5%

Residential real estate 9%

Consumer 3%

Total loans  7%

3Q09 Reserves, Net Charge-offs

Nearly 1,300 people

dedicated to loss mitigation

and loan modification

Additional 350 people

consulting on commercial real

estate

PNC September 30, 2009

Reserves to total loans / net

charge-offs

to

average

loans

¹

1.9

1.5

1.3

1.3

1.2

1.2

1.2

1.1

1.0

1.0

1.0

1.0

0.8

PNC

MTB

BBT

FITB

JPM

WFC

USB

KEY

COF

CMA

RF

BAC

STI

4.7%

4.7%

4.6%

4.0%

3.8%

3.0%

2.9%

2.8%

2.6%

2.5%

2.2%

2.2%

1.7%

JPM

COF

FITB

KEY

BAC

PNC

WFC

RF

USB

STI

BBT

CMA

MTB

Reserves /

total loans

PNC’s

Plans for

Growth

PNC Expects Its Credit Costs to Be Lower Relative to Peers as the

Economy Recovers.

Peer source: SNL DataSource. (1) Net charge-offs to average loans ratio is annualized. (2) Calculated as the allowance for loan and lease

losses combined with the remaining fair value marks on loans acquired from National City that were impaired per FASB ASC 310-30 as a

percentage of the outstanding loan portfolio at September 30, 2009.

15

Capital Ratios

10.0%

1Q09

2Q09

4.9%

5.3%

1Q09

2Q09

Tier 1 common ratio

Tier 1 risk-based ratio

5.5%

10.5%

10.9%

3Q09

3Q09

PNC capital ratios already reflect

impact of fair value marks –

as

of September 30, 2009, fair

value marks   were

approximately $6.6 billion

Increased common equity by

$3.5 billion from 4Q08 to 3Q09

Plan to repay TARP when

appropriate in a shareholder-

friendly manner subject to

regulatory approval

PNC’s gain related to BlackRock’s

December 1, 2009 merger with

Barclays Global Investors equals

approximately 30 basis points of

PNC’s risk-weighted assets

Highlights

4.8%

9.7%

4Q08

4Q08

PNC’s

Plans for

Growth

PNC Is Focused on Disciplined Uses of Capital During this

PNC Is Focused on Disciplined Uses of Capital During this

Challenging Time.

Challenging Time.

Ratios and common equity as of quarter end. (1) Fair value marks relate to loans acquired from National City that were impaired per

FASB ASC 310-30. (2) Estimated after tax-gain of $700 million divided by risk-weighted assets of $233.4 billion at September 30, 2009.

2

1

16

Getting from Here to There

PNC Is Recognized for Delivering on Our Growth Initiatives.

PNC Is Recognized for Delivering on Our Growth Initiatives.

.62%

return on

average

assets

Potential

Sept 30,

2009 YTD

Economic recovery

1.30%

return on

average

assets

Realistic

opportunities to reach

tactical goal of 1.30% ROAA

Levers

PNC’s

Plans for

Growth

Credit

Improvement in

credit costs

Revenue

Revenue growth

enhancements

Expense

Integration cost

save capture

17

Summary

PNC Continues to Build a Great Company.

PNC Continues to Build a Great Company.

PNC performance during the recession validates

our business model

PNC’s execution leaves us well-positioned to

navigate the changing environment

PNC’s realistic opportunities for growth are

expected to deliver significant value

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, capital levels, liquidity levels, asset quality 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,” “plan,” “expect,” “anticipate,” “intend,” “outlook,” “estimate,” “forecast,” “will,” “project”

and other similar words and expressions.  Forward-looking statements are subject to numerous assumptions, risks and uncertainties,

which change over time.

Forward-looking statements speak only as of the date they are made. We do not assume any duty and do not undertake to update our

forward-looking statements.  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 2008 Form 10-K and 2009 Form 10-Qs, including in the Risk Factors and Risk Management sections of those reports,

and in our other SEC filings.  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 levels of unemployment.

o

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

•A continuation of recent turbulence in significant portions of the 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 and regulatory landscape.

•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 the end of recessionary conditions in the later half of 2009 followed by a subdued recovery in 2010.

19

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:

o

Changes resulting from legislative and regulatory responses to the current economic and financial industry environment, including current and

future conditions or restrictions imposed as a result of our participation in the TARP Capital Purchase Program.

o

Other legislative and regulatory reforms, including broad-based restructuring of financial industry regulation as well as changes to laws and

regulations involving tax, pension, bankruptcy, consumer protection, and other aspects of the financial institution industry.

o

Increased litigation risk from recent regulatory and other governmental developments.

o

Unfavorable resolution of legal proceedings or other claims and regulatory and other governmental inquiries.

o

The results of the regulatory examination and supervision process, including our failure to satisfy the requirements of agreements with

governmental agencies.

o

Changes in accounting policies and principles.

Our issuance of securities to the US Department of the 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, and by our ability to meet evolving

regulatory capital standards.

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.

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 itself and to the integration of the acquired businesses into PNC.  These risks and uncertainties include the following:

The anticipated benefits of the transaction, 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.

Cautionary Statement Regarding Forward-Looking

Information (continued)

Appendix

20

Cautionary Statement Regarding Forward-Looking

Information (continued)

Appendix

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.

Legal proceedings or other claims made and governmental investigations currently pending against National City, as well as others that may be filed, made

or commenced relating to National City’s business and activities before the acquisition, could 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 has resulted 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 or other company’s actual or anticipated results.

21

Balance Sheet Overview

Change from

($8)

2

-

($3)

($7)

(3)

(5)

$1

($8)

(8)

(4)

$4

June 30,

2009

($20)

$271

Total liabilities and equity

($10)

$42

Borrowed funds

(13)

11

Other time/savings

($9)

$184

Total deposits

(4)   

16

Other

(7)

51

Retail CDs

$11

$122

Transaction deposits

3

29

Shareholders’

equity

(16)

56

Other assets

(15)

161

Total loans

($20)

$271

Total assets

$54

Sept. 30,

2009

$11

Dec. 31,

2008

Investment securities

Category (billions)

Loans/Assets

59%

Investment

securities/Assets

20%

Loans/Deposits

87%

Tier 1 risk-based ratio

10.9%

Tier 1 common ratio

5.5%

Sept. 30, 2009

Key Ratios

Appendix

22

Loan Portfolio

Commercial

and

equipment

leasing

$62.3

Commercial

real estate

$21.4

3Q09

Total loans

$160.6

Home

Equity

$29.6

Residential

real estate

$11.1

Distressed

¹

$19.7

Other

consumer

$16.5

As of September 30, 2009. (1) Includes commercial and equipment leasing, commercial real estate, home equity, residential real estate

and other consumer loans assigned to the Distressed Assets Portfolio segment totaling approximately $19.7 billion at September 30,

2009. Further information regarding the categories of loans in the Distressed Assets Portfolio segment and in the overall loan portfolio is

provided in the Appendix. (2) Impaired loans and/or fair value marks relate to loans acquired from National City that were impaired per

FASB ASC 310-30.

Held

for

Investment

(billions)

Core portfolio of $141 billion

-

Primarily in our footprint with a

majority collateralized

-

Relatively well balanced

-

No sector concentrations in

commercial portfolio

-

Core CRE well diversified in terms of

asset classes and geography

-

Core consumer 71% home equity and

residential real estate

Distressed portfolio of $20 billion

-

Includes impaired loans with a

carrying value of $7.8 billion marked

down

by

37%

2

-

Overall carried at about 75% of

customer outstandings considering

allowance

and

fair

value

marks

2

Highlights

39%

13%

10%

19%

7%

12%

Appendix

23

Credit Quality Trends

(1) Excludes loans that are government insured/guaranteed, primarily residential mortgages.  Excludes loans acquired from

National City that were impaired.  These loans are excluded as they were recorded at estimated fair value when acquired and are

currently considered performing loans due to the accretion of interest in purchase accounting. (2) Prior quarter net charge-offs

would not include National City, which PNC acquired on December 31, 2008. (3) Net charge-offs to average loans percentages are

annualized.

$4.3

$4.6

$4.8

Allowance for loan and lease losses

Allowance and fair

value marks (billions,

except percentages)

8.3

7.5

6.6

Fair value marks

$12.6

$12.1

$11.4

Total allowance and fair value marks

7.0%

7.0%

6.8%

Total allowance and fair value

marks/outstanding loan balances

11%

3%

8%

Change from prior quarter

Net charge-offs

(millions, except

percentages)

Nonperforming loans

(millions, except

percentages)

Accruing loans past

due

1

(millions,

except

percentages)

$2,136

$2,195

$2,380

30

–

89

days

$501

$1,043

$875

90 days or more

27%

108%

(16%)

Change from prior quarter

1.01%

1.89%

1.59%

NCOs/average

loans

3

$431

$795

$650

Total net charge-offs

N/M

2

84%

(18%)

Change from prior quarter

78%

40%

23%

Change from prior quarter

$2,960

$4,156

$5,126

Total nonperforming loans

2.52%

930

$3,226

2Q09

1.73%

3.19%

Nonperforming loans/total loans

413

1,260

Consumer lending

$2,547

$3,866

Commercial lending

1Q09

3Q09

Appendix

24

Pretax

Pre-Provision

Earnings

1

(1) For the nine months ended September 30, 2009, total revenue of $11.906 billion less noninterest expense of $7.365 billion equals

pretax

pre-provision

earnings

of

$4.541

billion.

For

the

three

months

ended

September

30,

2009,

total

revenue

of

$4.048

billion

less

noninterest expense of $2.379 billion equals pretax pre-provision earnings of $1.669 billion. Further information is provided later in the

Appendix.

$4.0

$2.4

$1.7

$0.9

$11.9

$7.4

$4.5

$2.9

Nine months ended

Revenue

Expense

Pretax pre-provision earnings

Provision

(billions)

September 30

2009

Three months ended

Appendix

25

Investment Securities Portfolio

Made significant progress improving

the risk profile

Increased purchases of Treasuries

and government agency securities

Sold non-agency residential

mortgage-backed securities at a gain

3Q09 unrealized pretax loss of $2.2

billion improved by $3.2 billion since

4Q08

Improved credit related OTTI

1

trend

from ($155) million in 2Q09 to

($129) million in 3Q09

Highlights

$45.5

$52.0

Total amortized cost

(billions)

7%

4%

8%

2%

21%

45%

13%

% of portfolio

3Q09       4Q08

5%

Asset-backed

Period end securities available for sale -

amortized cost basis

2%

US Treasury and government agencies

Residential mortgage-backed

50%

Agency

29%

Non-Agency

Commercial mortgage-backed

0%

Agency

9%

Non-Agency

5%

Other

(1) Other-than-temporary impairments.

Appendix

26

Non-GAAP to GAAP Reconcilement

Appendix

In millions, for the three months ended

Pretax

Net income

Reported net income (loss)

($246)

National City conforming provision for credit losses

$504

328

Net income (loss) excluding National City conforming

provision for credit losses

$82

December 31, 2008

PNC believes that information adjusted for the impact of this item may be useful due to the extent to which the item is not indicative of our ongoing operations.

Nine months ended

March 31, 2009

June 30, 2009

Sept. 30, 2009

June 30, 2009

in millions

Total revenue

$3,871

$3,987

$4,048

$11,906

Noninterest expense

2,328

2,658

2,379

7,365

Pretax pre-provision earnings

$1,543

$1,329

$1,669

$4,541

PNC believes that pretax pre-provision earnings is useful as a tool to help evaluate ability to provide for credit costs through operations.

Three months ended

As of September 30, 2009, in millions

Total PNC

Loans assigned to the

Distressed Assets

Portfolio segment

Total PNC after

reassigning Distressed

Asset Portfolio loans

% of core

PNC loan

portfolio

% of total PNC

loan portfolio

Commercial and equipment leasing

$63,211

$892

$62,319

44%

39%

Commerical

real estate

24,064

2,659

21,405

15%

13%

Total core commercial lending

$83,724

59%

52%

Other consumer

16,505

11

$16,494

12%

10%

Home equity

36,370

6,772

29,598

21%

19%

Residential real estate

20,458

9,348

11,110

8%

7%

Total core consumer lending

$57,202

41%

36%

Total core portfolio

$140,926

100%

88%

Distressed

19,682

12%

Total loans

$160,608

$19,682

$160,608

100%

27

Peer Group of Banks

Appendix

The PNC Financial Services Group, Inc.

PNC

BB&T Corporation

BBT

Bank of America Corporation

BAC

Capital One Financial, Inc.

COF

Comerica Inc.

CMA

Fifth Third Bancorp

FITB

JPMorgan Chase

JPM

KeyCorp

KEY

M&T Bank

MTB

Regions Financial Corporation

RF

SunTrust Banks, Inc.

STI

U.S. Bancorp

USB

Wells Fargo & Company

WFC

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