Financial Derivatives (Tables)

9 Months Ended

Sep. 30, 2014

Derivative Instruments And Hedging Activities Disclosure [Abstract]

Table 104: Total Gross Derivatives

			September 30, 2014						December 31, 2013
			Notional/		Asset		Liability		Notional/		Asset		Liability
			Contract		Fair		Fair		Contract		Fair		Fair
In millions			Amount		Value (a)		Value (b)		Amount		Value (a)		Value (b)
Derivatives designated as hedging instruments under GAAP		$	43,305	$	1,026	$	233	$	36,197	$	1,189	$	364
Derivatives not designated as hedging instruments under GAAP			299,533		3,325		3,314		345,059		3,604		3,570
Total gross derivatives		$	342,838	$	4,351	$	3,547	$	381,256	$	4,793	$	3,934
(a)	Included in Other assets on our Consolidated Balance Sheet.
(b)	Included in Other liabilities on our Consolidated Balance Sheet.

Derivatives Designated as Hedging Instruments under GAAP

Table 105: Derivatives Designated As Hedging Instruments under GAAP

					September 30, 2014						December 31, 2013
					Notional/		Asset		Liability		Notional/		Asset		Liability
					Contract		Fair		Fair		Contract		Fair		Fair
In millions					Amount		Value (a)		Value (b)		Amount		Value (a)		Value (b)
	Interest rate contracts:
		Fair value hedges:
			Receive-fixed swaps (c)	$	19,782	$	723	$	108	$	16,446	$	871	$	230
			Pay-fixed swaps (c) (d)		4,457		12		96		4,076		54		66
			Subtotal	$	24,239	$	735	$	204	$	20,522	$	925	$	296
		Cash flow hedges:
			Receive-fixed swaps (c)	$	17,571	$	282	$	29	$	14,737	$	264	$	58
			Forward purchase commitments		550		2
			Subtotal	$	18,121	$	284	$	29	$	14,737	$	264	$	58
	Foreign exchange contracts:
		Net investment hedge			945		7				938				10
Total derivatives designated as hedging instruments				$	43,305	$	1,026	$	233	$	36,197	$	1,189	$	364
(a)		Included in Other assets on our Consolidated Balance Sheet.
(b)		Included in Other liabilities on our Consolidated Balance Sheet.
(c)		The floating rate portion of interest rate contracts is based on money-market indices. As a percent of notional amount, 44% were based on 1-month LIBOR and 56% on 3-month LIBOR at September 30, 2014 compared with 43% and 57%, respectively, at December 31, 2013.
(d)		Includes zero-coupon swaps.

Gains (Losses) on Derivatives and Related Hedged Items - Fair Value Hedges

Table 106: Gains (Losses) on Derivatives and Related Hedged Items - Fair Value Hedges

Three months ended

Nine months ended

September 30, 2014

September 30, 2013

September 30, 2014

September 30, 2013

Gain (Loss)

Gain

on Related

Gain

on Related

Gain

on Related

Gain

on Related

(Loss) on

Hedged

(Loss) on

Hedged

(Loss) on

Hedged

(Loss) on

Hedged

Derivatives

Items

Derivatives

Items

Derivatives

Items

Derivatives

Items

Recognized

in Income

In millions

Hedged Items

Location

Amount

Interest rate

U.S. Treasury and

Investment

contracts

Government

securities

Agencies Securities

(interest

income)

(31)

(1)

(52)

(66)

Interest rate

Other Debt

Investment

contracts

Securities

securities

(interest

income)

(2)

(1)

(5)

Interest rate

Subordinated debt

Borrowed funds

contracts

(interest

expense)

(69)

(24)

(23)

(287)

269

Borrowed funds

Interest rate

Bank notes and

(interest

contracts

senior debt

expense)

(78)

(5)

(19)

(276)

269

Total (a)

(114)

110

(29)

(65)

(495)

467

(a) The ineffective portion of the change in value of our fair value hedge derivatives resulted in net losses of $4 million for the three months ended September 30, 2014 and net losses of $19 million for the nine months ended September 30, 2014 compared with net losses of $15 million for the three months ended September 30, 2013 and net losses of $28 million for the nine months ended September 30, 2013.

Gains (Losses) on Derivatives and Related Cash Flows - Cash Flow Hedges

Table 107: Gains (Losses) on Derivatives and Related Cash Flows - Cash Flow Hedges (a) (b)

				Three months ended				Nine months ended
				September 30				September 30
In millions				2014		2013		2014		2013
Gains (losses) on derivatives recognized in OCI - (effective portion)			$	(17)	$	75	$	193	$	(104)
Less: Gains (losses) reclassified from accumulated OCI into income - (effective portion)
	Interest income			64		79		200		265
	Noninterest income			-		27		(2)		50
Total gains (losses) reclassified from accumulated OCI into income - (effective portion)				64		106		198		315

Net unrealized gains (losses) on cash flow hedge derivatives			$	(81)	$	(31)	$	(5)	$	(419)

(a)		All cash flow hedge derivatives are interest rate contracts as of September 30, 2014 and September 30, 2013.
(b)		The amount of cash flow hedge ineffectiveness recognized in income was not material for the periods presented.

Gains (Losses) on Derivatives - Net Investment Hedges

Table 108: Gains (Losses) on Derivatives - Net Investment Hedges

		Three months ended				Nine months ended
		September 30				September 30
In millions			2014		2013		2014		2013
Gains (losses) on derivatives recognized in OCI (effective portion)
	Foreign exchange contracts	$	51	$	(55)	$	18	$	1

Derivatives Not Designated as Hedging Instruments under GAAP

Table 109: Derivatives Not Designated As Hedging Instruments under GAAP

					September 30, 2014						December 31, 2013
					Notional/		Asset		Liability		Notional/		Asset		Liability
					Contract		Fair		Fair		Contract		Fair		Fair
In millions					Amount		Value (a)		Value (b)		Amount		Value (a)		Value (b)
Derivatives used for residential mortgage banking activities:
Residential mortgage servicing
	Interest rate contracts:
		Swaps		$	34,919	$	548	$	266	$	37,424	$	654	$	360
		Swaptions			1,398		25		20		845		18		18
		Futures (c)			25,451						49,250
		Futures options			13,075		2		2		24,000		10		2
		Mortgage-backed securities commitments			525				1		832				3
			Subtotal	$	75,368	$	575	$	289	$	112,351	$	682	$	383
Loan sales
	Interest rate contracts:
		Futures (c)		$	103					$	350
		Bond options			300	$	1				200	$	1
		Mortgage-backed securities commitments			4,507		5	$	9		5,173		26	$	9
		Residential mortgage loan commitments			2,058		20				1,605		13
			Subtotal	$	6,968	$	26	$	9	$	7,328	$	40	$	9
			Subtotal	$	82,336	$	601	$	298	$	119,679	$	722	$	392
Derivatives used for commercial mortgage banking activities:
	Interest rate contracts:
		Swaps		$	3,533	$	34	$	41	$	2,158	$	23	$	52
		Swaptions			439		3		2		125				3
		Futures (c)			20,170						4,598
		Futures options			5,250				1		45,500		15		4
		Commercial mortgage loan commitments			1,038		6		3		673		20		11
			Subtotal	$	30,430	$	43	$	47	$	53,054	$	58	$	70
	Credit contracts:
		Credit default swaps			95				1		95
			Subtotal	$	30,525	$	43	$	48	$	53,149	$	58	$	70
Derivatives used for customer-related activities:
	Interest rate contracts:
		Swaps		$	142,087	$	2,363	$	2,281	$	134,408	$	2,540	$	2,445
		Caps/floors - Sold			4,557				15		4,789				11
		Caps/floors - Purchased			6,033		35				5,519		37
		Swaptions			2,798		60		16		2,354		49		51
		Futures (c)			4,791						1,856
		Mortgage-backed securities commitments			2,566		4		3		1,515		4		3
			Subtotal	$	162,832	$	2,462	$	2,315	$	150,441	$	2,630	$	2,510
	Foreign exchange contracts				13,056		194		159		14,316		192		172
	Credit contracts:
		Risk participation agreements			5,505		2		3		4,777		2		4
			Subtotal	$	181,393	$	2,658	$	2,477	$	169,534	$	2,824	$	2,686
Derivatives used for other risk management activities:
	Interest rate contracts:
		Swaps		$	234					$	511
		Futures (c)			1,585						838
		Mortgage-backed securities commitments			500	$	1
			Subtotal	$	2,319	$	1			$	1,349
	Foreign exchange contracts				1,442		22				8
	Credit contracts:
		Credit default swaps			15
	Other contracts (d)				1,503			$	491		1,340			$	422
			Subtotal	$	5,279	$	23	$	491	$	2,697			$	422
Total derivatives not designated as hedging instruments				$	299,533	$	3,325	$	3,314	$	345,059	$	3,604	$	3,570
(a)		Included in Other assets on our Consolidated Balance Sheet.
(b)		Included in Other liabilities on our Consolidated Balance Sheet.
(c)		Futures contracts settle in cash daily and therefore, no derivative asset or liability is recognized on our Consolidated Balance Sheet.
(d)		Includes PNC's obligation to fund a portion of certain BlackRock LTIP programs and the swaps entered into in connection with sales of a portion of Visa Class B common shares. Refer to Note 8 Fair Value for additional information on the Visa swaps.

Gains (Losses) on Derivatives Not Designated as Hedging Instruments under GAAP

Table 110: Gains (Losses) on Derivatives Not Designated As Hedging Instruments under GAAP

			Three months ended				Nine months ended
			September 30				September 30
In millions				2014		2013		2014		2013
Derivatives used for residential mortgage banking activities:
Residential mortgage servicing
	Interest rate contracts		$	15	$	16	$	125	$	(195)
Loan sales
	Interest rate contracts			17		20		5		247
		Gains (losses) included in residential mortgage banking activities (a)	$	32	$	36	$	130	$	52
Derivatives used for commercial mortgage banking activities:
	Interest rate contracts (b) (c)		$	4	$	17	$	47	$	24
	Credit contracts (c)							(1)		(1)
		Gains (losses) from commercial mortgage banking activities	$	4	$	17	$	46	$	23
Derivatives used for customer-related activities:
	Interest rate contracts		$	15	$	21	$	25	$	107
	Foreign exchange contracts			(5)				43		59
	Equity contracts									(3)
	Credit contracts					2				(1)
		Gains (losses) from customer-related activities (c)	$	10	$	23	$	68	$	162
Derivatives used for other risk management activities:
	Interest rate contracts		$	1	$	(7)	$	(14)	$	(3)
	Foreign exchange contracts			80		(1)		73		1
	Other contracts (d)			(52)		(32)		(79)		(109)
		Gains (losses) from other risk management activities (c)	$	29	$	(40)	$	(20)	$	(111)
Total gains (losses) from derivatives not designated as hedging instruments			$	75	$	36	$	224	$	126
(a)		Included in Residential mortgage noninterest income.
(b)		Included in Corporate services noninterest income.
(c)		Included in Other noninterest income.
(d)		Includes BlackRock LTIP funding obligation and the swaps entered into in connection with sales of a portion of Visa Class B common shares.

Credit Default Swaps

Table 111: Credit Default Swaps (a)

		September 30, 2014					December 31, 2013
						Weighted-			Weighted-
						Average			Average
						Remaining			Remaining
		Notional			Fair	Maturity	Notional		Maturity
Dollars in millions		Amount			Value	In Years	Amount		In Years
Credit Default Swaps – Purchased (b)
Single name		$	50	$	(1)	6.0	$	35	7.3
Index traded			60		1	34.5		60	35.2
Total		$	110	$	-	21.5	$	95	24.9
(a)	There were no credit default swaps sold as of September 30, 2014 and December 31, 2013.
(b)	The fair value of credit default swaps purchased was less than $1 million as of December 31, 2013.

Credit Ratings of Credit Default Swaps

Table 112: Credit Ratings of Credit Default Swaps (a)

In millions		September 30, 2014		December 31, 2013
Credit Default Swaps – Purchased
Investment grade (b)		$	95	$	95
Subinvestment grade (c)			15
Total		$	110	$	95
(a)	There were no credit default swaps sold as of September 30, 2014 and December 31, 2013.
(b)	Investment grade with a rating of BBB-/Baa3 or above based on published rating agency information.
(c)	There were no subinvestment grade credit default swaps purchased as of December 31, 2013. Subinvestment grade represents a rating below BBB-/Baa3 based on published rating agency information.

Referenced/Underlying Assets of Credit Default Swaps

Table 113: Referenced/Underlying Assets of Credit Default Swaps


	September 30, 2014		December 31, 2013
Corporate debt		45%	37%
Commercial mortgage-backed securities		55%	63%

Risk Participation Agreements Sold

Table 114: Risk Participation Agreements Sold

September 30, 2014

December 31, 2013

Weighted-

Average

Remaining

Notional

Fair

Maturity

Notional

Fair

Maturity

Dollars in millions

Amount

Value

In Years

Amount

Value

In Years

Risk Participation Agreements Sold

2,863

(3)

5.6

2,770

(4)

6.1

Internal Credit Ratings of Risk Participation Agreements Sold

Table 115: Internal Credit Ratings of Risk Participation Agreements Sold

		September 30, 2014		December 31, 2013
Pass (a)		99	%	98	%
Below pass (b)		1	%	2	%
(a)	Indicates the expected risk of default is currently low.
(b)	Indicates a higher degree of risk of default.

Derivative Assets And Liabilities Offsetting

Table 116: Derivative Assets and Liabilities Offsetting


					Amounts							Securities
			Gross		Offset on the				Net			Collateral
			Fair Value		Consolidated Balance Sheet				Fair Value			Held Under
September 30, 2014			Derivative		Fair Value		Cash		Derivative			Master Netting		Net
In millions			Assets		Offset Amount		Collateral		Assets			Agreements		Amounts
Derivative assets
	Interest rate contracts	$	4,126	$	2,006	$	373	$	1,747		$	112	$	1,635
	Foreign exchange contracts		223		118		19		86			1		85
	Credit contracts		2		1				1					1
	Total derivative assets (a) (b)	$	4,351	$	2,125	$	392	$	1,834	(c)	$	113	$	1,721


					Amounts							Securities
			Gross		Offset on the				Net			Collateral
			Fair Value		Consolidated Balance Sheet				Fair Value			Pledged Under
September 30, 2014			Derivative		Fair Value		Cash		Derivative			Master Netting		Net
In millions			Liabilities		Offset Amount		Collateral		Liabilities			Agreements		Amounts
Derivative liabilities
	Interest rate contracts	$	2,893	$	2,070	$	403	$	420				$	420
	Foreign exchange contracts		159		52		11		96					96
	Credit contracts		4		3		1
	Other contracts		491						491					491
	Total derivative liabilities (a) (b)	$	3,547	$	2,125	$	415	$	1,007	(d)			$	1,007


					Amounts							Securities
			Gross		Offset on the				Net			Collateral
			Fair Value		Consolidated Balance Sheet				Fair Value			Held Under
December 31, 2013			Derivative		Fair Value		Cash		Derivative			Master Netting		Net
In millions			Assets		Offset Amount		Collateral		Assets			Agreements		Amounts
Derivative assets
	Interest rate contracts	$	4,599	$	2,468	$	556	$	1,575		$	115	$	1,460
	Foreign exchange contracts		192		64		9		119					119
	Credit contracts		2		1				1					1
	Total derivative assets (a) (b)	$	4,793	$	2,533	$	565	$	1,695	(c)	$	115	$	1,580


					Amounts							Securities
			Gross		Offset on the				Net			Collateral
			Fair Value		Consolidated Balance Sheet				Fair Value			Pledged Under
December 31, 2013			Derivative		Fair Value		Cash		Derivative			Master Netting		Net
In millions			Liabilities		Offset Amount		Collateral		Liabilities			Agreements		Amounts
Derivative liabilities
	Interest rate contracts	$	3,326	$	2,447	$	473	$	406				$	406
	Foreign exchange contracts		182		83		23		76					76
	Credit contracts		4		3		1
	Other contracts		422						422					422
	Total derivative liabilities (a) (b)	$	3,934	$	2,533	$	497	$	904	(d)			$	904
(a)	There were no derivative assets and liabilities equity contracts as of September 30, 2014 and December 31, 2013.
(b)	Included derivative assets and derivative liabilities as of September 30, 2014 totaling $375 million and $319 million, respectively, related to interest rate contracts executed bilaterally with counterparties in the OTC market and novated to and cleared through a central clearing house. The comparable amounts as of December 31, 2013 totaled $331 million and $224 million, respectively. Derivative assets and liabilities as of September 30, 2014 and December 31, 2013 related to exchange-traded interest rate contracts were not material. As of September 30, 2014 and December 31, 2013, these contracts were not subject to offsetting. The remaining gross and net derivative assets and liabilities relate to contracts executed bilaterally with counterparties that are not settled through an organized exchange or central clearing house.
(c)	Represents the net amount of derivative assets included in Other assets on our Consolidated Balance Sheet.
(d)	Represents the net amount of derivative liabilities included in Other liabilities on our Consolidated Balance Sheet.