Segment Reporting

6 Months Ended

Jun. 30, 2013

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. 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. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower, and economic conditions. Key reserve assumptions are periodically updated.

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.

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, private equity investments, 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, ATMs, call centers, online bankingand mobile channels. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Illinois,Maryland, Indiana, North Carolina,Florida,Kentucky, Washington, D.C.,Delaware,Alabama, Virginia, Georgia, 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 investmentand 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. 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 of 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 loan applications are brokered by majority owned affiliates 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.

We hold an equity investment in BlackRock, which is a key component of our diversified revenue strategy. BlackRock is a publically traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At June 30,2013, our economic interest in BlackRock was 22%.

PNC received cash dividends from BlackRock of $125 millionand $113million during thefirst six months of 2013 and2012, respectively.

Non-Strategic Assets Portfolioincludes 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 133: Results Of Businesses
				Corporate &		Asset		Residential				Non-Strategic
Three months ended June 30		Retail		Institutional		Management		Mortgage				Assets
In millions		Banking		Banking		Group		Banking		BlackRock		Portfolio		Other		Consolidated
2013
Income Statement
Net interest income		$	1,012	$	912	$	70	$	51			$	164	$	49	$	2,258
Noninterest income			542		477		184		177	$	149		11		266		1,806
	Total revenue		1,554		1,389		254		228		149		175		315		4,064
Provision for credit losses (benefit)			148		(40)		1		4				39		5		157
Depreciation and amortization			45		32		11		3						86		177
Other noninterest expense			1,111		467		184		189				41		266		2,258
Income (loss) before income taxes and
	noncontrolling interests		250		930		58		32		149		95		(42)		1,472
Income taxes (benefit)			92		318		22		12		37		35		(167)		349
Net income		$	158	$	612	$	36	$	20	$	112	$	60	$	125	$	1,123
Inter-segment revenue		$	2	$	5	$	3	$	2	$	4	$	(3)	$	(13)
Average Assets (a)		$	74,516	$	112,207	$	7,289	$	10,407	$	5,982	$	10,290	$	81,336	$	302,027
2012
Income Statement
Net interest income		$	1,114	$	1,059	$	75	$	53			$	221	$	4	$	2,526
Noninterest income			437		354		165		(162)	$	111		2		190		1,097
	Total revenue		1,551		1,413		240		(109)		111		223		194		3,623
Provision for credit losses (benefit)			165		33		(1)		(2)				50		11		256
Depreciation and amortization			48		34		10		2						83		177
Other noninterest expense			1,123		462		171		228				67		420		2,471
Income (loss) before income taxes and
	noncontrolling interests		215		884		60		(337)		111		106		(320)		719
Income taxes (benefit)			79		307		22		(124)		23		39		(173)		173
Net income (loss)		$	136	$	577	$	38	$	(213)	$	88	$	67	$	(147)	$	546
Inter-segment revenue				$	9	$	3	$	2	$	4	$	(3)	$	(15)
Average Assets (a)		$	73,093	$	102,835	$	6,659	$	11,501	$	5,597	$	12,690	$	83,776	$	296,151
				Corporate &		Asset		Residential				Non-Strategic
Six months ended June 30		Retail		Institutional		Management		Mortgage				Assets
In millions		Banking		Banking		Group		Banking		BlackRock		Portfolio		Other		Consolidated
2013
Income Statement
Net interest income		$	2,061	$	1,838	$	143	$	99			$	367	$	139	$	4,647
Noninterest income			976		862		366		420	$	287		27		434		3,372
	Total revenue		3,037		2,700		509		519		287		394		573		8,019
Provision for credit losses (benefit)			310		(26)		6		24				81		(2)		393
Depreciation and amortization			92		64		21		6						169		352
Other noninterest expense			2,195		915		357		386				93		532		4,478
Income (loss) before income taxes and
	noncontrolling interests		440		1,747		125		103		287		220		(126)		2,796
Income taxes (benefit)			162		594		46		38		67		81		(319)		669
Net income		$	278	$	1,153	$	79	$	65	$	220	$	139	$	193	$	2,127
Inter-segment revenue		$	2	$	11	$	6	$	3	$	8	$	(5)	$	(25)
Average Assets (a)		$	74,317	$	111,941	$	7,210	$	10,604	$	5,982	$	10,511	$	82,167	$	302,732
2012
Income Statement
Net interest income		$	2,158	$	1,975	$	150	$	104			$	438	$	(8)	$	4,817
Noninterest income			828		682		333		80	$	227		(17)		405		2,538
	Total revenue		2,986		2,657		483		184		227		421		397		7,355
Provision for credit losses (benefit)			300		52		9		(9)				68		21		441
Depreciation and amortization			94		67		20		5						158		344
Other noninterest expense			2,146		892		337		428				135		821		4,759
Income (loss) before income taxes and
	noncontrolling interests		446		1,646		117		(240)		227		218		(603)		1,811
Income taxes (benefit)			163		574		43		(88)		49		80		(367)		454
Net income (loss)		$	283	$	1,072	$	74	$	(152)	$	178	$	138	$	(236)	$	1,357
Inter-segment revenue				$	18	$	6	$	4	$	7	$	(5)	$	(30)
Average Assets (a)		$	71,420	$	97,866	$	6,613	$	11,745	$	5,597	$	12,407	$	83,199	$	288,847
(a)	Period-end balances for BlackRock.