Segment Reporting

9 Months Ended

Sep. 30, 2012

Segment Reporting [Abstract]

Segment Reporting

Note 19 Segment Reporting

We have six reportable business segments:

• Retail Banking
• Corporate & Institutional Banking
• Asset Management Group
• Residential Mortgage Banking
• BlackRock
• Non-Strategic Assets Portfolio

Results of individual businesses are presented based on our internal management reporting practices. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We periodically refine our internal methodologies as management reporting practices are enhanced.To the extent practicable, retrospective application of new methodologies is made to prior period reportable business segment results and disclosures to create comparability to the current period presentation to reflect any such refinements.

Financial results are presented, to the extent practicable, as if each business operated on a stand-alone basis. Additionally, we have aggregated the results forcorporate support functions within “Other” for financial reporting purposes.

Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product maturities, duration and other factors. During the second quarter of 2012, enhancements were made to the funds transfer pricing methodology. Retrospective application of our new funds transfer pricing methodology has been made to the prior period reportable business segment results and disclosures to create comparability to the current period presentation, which we believe is more meaningful to readers of our financial statements.

A portion of capital is intended to cover unexpected losses and is assigned to our business segments using our risk-based economic capital model, including consideration of the goodwill and other intangible assets at those business segments, as well as the diversification of risk among the business segments.

We have allocated the allowances for loan and lease losses and for unfunded loan commitments and letters of credit based on our assessment of risk in each business segment's loan portfolio. Our allocation of the costs incurred by operations and other shared support areas not directly aligned with the businesses is primarily based on the use of services. During the third quarter of 2012, enhancements were made to certain processes and assumptions used to estimate our ALLL. Specifically, PNC increased the amount of internally observed data used in estimating commercial lending PDs and LGDs. Prior periods are not presented on a comparable basis as it is not practicable to do so.

Total business segment financial results differ from total consolidated net income. The impact of these differences is reflected in the “Other” category in the business segment tables. “Other” includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as gains or losses related to BlackRock transactions, integration costs, asset and liability management activities including net securities gains or losses, other-than-temporary impairment of investment securities and certain trading activities, exited businesses, alternative investments, including private equity, intercompany eliminations, most corporate overhead, tax adjustments that are not allocated to business segments, and differences between business segment performance reporting and financial statement reporting (GAAP), including the presentation of net income attributable to noncontrolling interests as the segments' results exclude their portion of net income attributable to noncontrolling interests. Assets, revenue and earnings attributable to foreign activities were not material in the periods presented for comparative purposes.

Business Segment Products and Services

Retail Banking provides deposit, lending, brokerage, investment management, and cash management services to consumer and small business customers within our primary geographic markets. Our customers are serviced through our branch network, call centers and online banking channels. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Illinois,Maryland, Indiana, North Carolina,Florida,Kentucky, Washington, D.C., Alabama, Delaware, Georgia, Virginia, Missouri, Wisconsin, and South Carolina.

Corporate & Institutional Bankingprovides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government and not-for-profit 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, our multi-seller conduit, securities underwriting, and securities sales and trading. Corporate & Institutional Banking also provides commercial loan servicing, and 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 offered nationally and internationally.

Asset Management Group includes personal wealth management for high net worth and ultra high net worth clients and institutional asset management. Wealth management products and services include financial and retirement planning, customized investment management, private banking, tailored credit solutions and trust management and administration for individuals and their families. Institutional asset management provides investment management, custody, and retirement administration services. The institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments primarily located in our geographic footprint.

Residential Mortgage Bankingdirectly originates primarily first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint, and also originates loans through majority owned affiliates. Mortgage loans represent loans collateralized by one-to-four-family residential real estate. These loans are typically underwritten to government agency and/or third-party standards, and sold, servicing retained, to secondary mortgage conduits FNMA, FHLMC, Federal Home Loan Banks and third-party investors, or are securitized and issued under the GNMA program. The mortgage servicing operation performs all functions related to servicing mortgage loans - primarily those in first lien position - for various investors and for loans owned by PNC. Certain loans originated through majority owned affiliates are sold to others.

BlackRockis a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. BlackRock provides diversified investment management services to institutional clients, intermediary and individual investors through various investment vehicles. Investment management services primarily consist of the management of equity, fixed income, multi-asset class, alternative investment and cash management products. BlackRock offers its investment products in a variety of vehicles, including open-end and closed-end mutual funds, iShares® exchange-traded funds (“ETFs”), collective investment trusts and separate accounts. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services to a broad base of clients. Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments (including long-term portfolio liquidation assignments), risk management and strategic planning and execution. At September 30,2012, our economic interest in BlackRock was 22%.

PNC received cash dividends from BlackRock of $169 millionand $160million during thenine months ended September 30,2012 andSeptember 30,2011, respectively.

Non-Strategic Assets Portfolio(formerly, Distressed Assets Portfolio)includes a consumer portfolio of mainly residential mortgage and brokered home equity loans and a small commercial loan and lease portfolio. We obtained a significant portion of these non-strategic assets through acquisitions of other companies.

Table 135: Results Of Businesses
				Corporate &		Asset		Residential				Non-Strategic
Three months ended September 30		Retail		Institutional		Management		Mortgage				Assets
In millions		Banking		Banking		Group		Banking		BlackRock		Portfolio		Other		Consolidated
2012
Income Statement
Net interest income		$	1,076	$	992	$	73	$	52			$	195	$	11	$	2,399
Noninterest income			588		397		170		232	$	139		9		154		1,689
	Total revenue		1,664		1,389		243		284		139		204		165		4,088
Provision for credit losses (benefit)			220		(61)		4		2				61		2		228
Depreciation and amortization			49		40		11		3						79		182
Other noninterest expense			1,091		480		169		223				79		426		2,468
Income (loss) before income taxes and
	noncontrolling interests		304		930		59		56		139		64		(342)		1,210
Income taxes (benefit)			112		323		22		20		34		24		(250)		285
Net income (loss)		$	192	$	607	$	37	$	36	$	105	$	40	$	(92)	$	925
Inter-segment revenue		$	1	$	5	$	3	$	2	$	4	$	(3)	$	(12)
Average Assets (a)		$	73,290	$	106,923	$	6,771	$	11,501	$	5,727	$	12,017	$	83,913	$	300,142
2011
Income Statement
Net interest income		$	956	$	879	$	69	$	46			$	228	$	(3)	$	2,175
Noninterest income			467		251		159		208	$	122		10		152		1,369
	Total revenue		1,423		1,130		228		254		122		238		149		3,544
Provision for credit losses (benefit)			206		11		(10)		15				45		(6)		261
Depreciation and amortization			47		30		10		2						71		160
Other noninterest expense			979		418		165		201				47		170		1,980
Income (loss) before income taxes and
	noncontrolling interests		191		671		63		36		122		146		(86)		1,143
Income taxes (benefit)			70		234		23		13		30		53		(114)		309
Net income		$	121	$	437	$	40	$	23	$	92	$	93	$	28	$	834
Inter-segment revenue				$	8	$	4	$	2	$	4	$	(2)	$	(16)
Average Assets (a)		$	66,158	$	81,899	$	6,664	$	10,877	$	5,441	$	12,715	$	83,097	$	266,851
				Corporate &		Asset		Residential				Non-Strategic
Nine months ended September 30		Retail		Institutional		Management		Mortgage				Assets
In millions		Banking		Banking		Group		Banking		BlackRock		Portfolio		Other		Consolidated
2012
Income Statement
Net interest income		$	3,234	$	2,967	$	223	$	156			$	633	$	3	$	7,216
Noninterest income			1,416		1,079		503		312	$	366		(8)		559		4,227
	Total revenue		4,650		4,046		726		468		366		625		562		11,443
Provision for credit losses (benefit)			520		(9)		13		(7)				129		23		669
Depreciation and amortization			143		106		31		8						238		526
Other noninterest expense			3,237		1,373		506		651				214		1,246		7,227
Income (loss) before income taxes and
	noncontrolling interests		750		2,576		176		(184)		366		282		(945)		3,021
Income taxes (benefit)			275		897		65		(68)		83		104		(617)		739
Net income (loss)		$	475	$	1,679	$	111	$	(116)	$	283	$	178	$	(328)	$	2,282
Inter-segment revenue		$	1	$	23	$	9	$	6	$	11	$	(8)	$	(42)
Average Assets (a)		$	72,048	$	100,907	$	6,666	$	11,663	$	5,727	$	12,276	$	83,352	$	292,639
2011
Income Statement
Net interest income		$	2,833	$	2,542	$	207	$	149			$	721	$	49	$	6,501
Noninterest income			1,362		874		488		583	$	351		32		586		4,276
	Total revenue		4,195		3,416		695		732		351		753		635		10,777
Provision for credit losses (benefit)			662		12		(34)		15				278		29		962
Depreciation and amortization			140		108		30		7						209		494
Other noninterest expense			2,907		1,229		473		473				156		654		5,892
Income (loss) before income taxes and
	noncontrolling interests		486		2,067		226		237		351		319		(257)		3,429
Income taxes (benefit)			177		724		83		87		80		117		(417)		851
Net income		$	309	$	1,343	$	143	$	150	$	271	$	202	$	160	$	2,578
Inter-segment revenue		$	1	$	17	$	10	$	6	$	12	$	(7)	$	(39)
Average Assets (a)		$	66,193	$	79,315	$	6,744	$	11,103	$	5,441	$	13,392	$	81,331	$	263,519
(a)	Period-end balances for BlackRock.