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

January 13, 2017

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)	(I.R.S. Employer Identification No.)

The Tower at PNC Plaza

300 Fifth Avenue

Pittsburgh, Pennsylvania 15222-2401

(Address of principal executive offices, including zip code)

(888) 762-2265

(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 January 13, 2017, 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 2016. 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: January 13, 2017	By:	/s/ Gregory H. Kozich
		Gregory H. Kozich
		Senior Vice President and Controller

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EXHIBIT INDEX

Number	Description	Method of Filing
99.1	Financial Supplement (unaudited) for Fourth Quarter and Full Year 2016	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 2016

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

FOURTH QUARTER 2016

(UNAUDITED)

	Page
Consolidated Results:
Income Statement		1
Balance Sheet		2
Per Share Related Information		3
Average Balance Sheet		4-5
Details of Net Interest Margin		6
Total and Core Net Interest Income and Net Interest Margin		7
Loans		8
Allowance for Credit Losses		9
Nonperforming Assets		10-11
Accruing Loans Past Due		12

Business Segment Results:
Descriptions	13
Period End Employees	13
Income and Revenue	14
Retail Banking	15
Corporate & Institutional Banking	16
Asset Management Group	17
Residential Mortgage Banking	18
Non-Strategic Assets Portfolio	19
Glossary of Terms	20-24

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on January 13, 2017. We have reclassified certain prior period amounts to be consistent with the current period presentation, which we believe is more meaningful to readers of our consolidated financial statements. 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.

BUSINESS

PNC is one of the largest diversified financial services companies in the United States and is headquartered in Pittsburgh, Pennsylvania. PNC has businesses engaged in retail banking, corporate and institutional banking, asset management and residential mortgage banking, providing many of its products and services nationally, as well as other products and services in PNC’s primary geographic markets located in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Alabama, Georgia, Missouri, Wisconsin and South Carolina. PNC also provides certain products and services internationally.

The PNC Financial Services Group, Inc.

Cross-Reference Index to Fourth Quarter and Full Year 2016 Financial Supplement (Unaudited)

Financial Supplement Table Reference

Table	Description	Page
1	Consolidated Income Statement		1
2	Consolidated Balance Sheet		2
3	Per Share Related Information		3
4	Average Consolidated Balance Sheet		4-5
5	Details of Net Interest Margin		6
6	Total and Core Net Interest Income		7
7	Details of Net Interest Margin		7
8	Details of Core Net Interest Margin		7
9	Details of Loans		8
10	Change in Allowance for Loan and Lease Losses		9
11	Nonperforming Assets By Type		10
12	Change in Nonperforming Assets		11
13	Largest Individual Nonperforming Assets at December 31, 2016		11
14	Accruing Loans Past Due 30 To 59 Days		12
15	Accruing Loans Past Due 60 To 89 Days		12
16	Accruing Loans Past Due 90 Days or More		12
17	Period End Employees		13
18	Summary of Business Segment Income and Revenue		14
19	Retail Banking		15
20	Corporate & Institutional Banking		16
21	Asset Management Group		17
22	Residential Mortgage Banking		18
23	Non-Strategic Assets Portfolio		19

THE PNC FINANCIAL SERVICES GROUP, INC. Page 1

Table 1: Consolidated Income Statement (Unaudited)

	Three months ended															Year ended
In millions, except per share data	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Interest Income
Loans	$	1,886		$	1,856		$	1,829		$	1,843		$	1,806		$	7,414		$	7,203
Investment securities		457			451			456			462			443			1,826			1,679
Other		110			101			99			102			109			412			441
Total interest income		2,453			2,408			2,384			2,407			2,358			9,652			9,323
Interest Expense
Deposits		114			107			104			105			106			430			403
Borrowed funds		209			206			212			204			160			831			642
Total interest expense		323			313			316			309			266			1,261			1,045
Net interest income		2,130			2,095			2,068			2,098			2,092			8,391			8,278
Noninterest Income
Asset management		399			404			377			341			399			1,521			1,567
Consumer services		349			348			354			337			349			1,388			1,335
Corporate services		387			389			403			325			394			1,504			1,491
Residential mortgage		142			160			165			100			113			567			566
Service charges on deposits		172			174			163			158			170			667			651
Other (a)		295			259			264			306			336			1,124			1,337
Total noninterest income		1,744			1,734			1,726			1,567			1,761			6,771			6,947
Total revenue		3,874			3,829			3,794			3,665			3,853			15,162			15,225
Provision For Credit Losses		67			87			127			152			74			433			255
Noninterest Expense
Personnel		1,231			1,239			1,226			1,145			1,252			4,841			4,831
Occupancy		210			215			215			221			208			861			842
Equipment		254			246			240			234			245			974			925
Marketing		60			72			61			54			56			247			249
Other		686			622			618			627			635			2,553			2,616
Total noninterest expense		2,441			2,394			2,360			2,281			2,396			9,476			9,463
Income before income taxes and noncontrolling interests		1,366			1,348			1,307			1,232			1,383			5,253			5,507
Income taxes		319			342			318			289			361			1,268			1,364
Net income		1,047			1,006			989			943			1,022			3,985			4,143
Less: Net income (loss) attributable to noncontrolling interests		22			18			23			19			14			82			37
Preferred stock dividends and discount accretion and redemptions (b)		43			64			43			65			43			215			225
Net income attributable to common shareholders	$	982		$	924		$	923		$	859		$	965		$	3,688		$	3,881
Earnings Per Common Share
Basic	$	2.01		$	1.87		$	1.84		$	1.70		$	1.90		$	7.42		$	7.52
Diluted	$	1.97		$	1.84		$	1.82		$	1.68		$	1.87		$	7.30		$	7.39
Average Common Shares Outstanding
Basic		487			490			497			501			506			494			514
Diluted		494			496			503			507			513			500			521
Efficiency		63	%		63	%		62	%		62	%		62	%		62	%		62	%
Noninterest income to total revenue		45	%		45	%		45	%		43	%		46	%		45	%		46	%
Effective tax rate (c)		23.4	%		25.4	%		24.3	%		23.5	%		26.1	%		24.1	%		24.8	%

(a) Includes net gains (losses) on sales of securities of $(4) million, $7 million, $4 million, $9 million, and $2 million for the quarters ended December 31, 2016, September 30, 2016, June 30, 2016, March 30, 2016 and December 31, 2015, respectively, and $16 million and $43 million for the years ended December 31, 2016 and 2015, respectively.

(b) Dividends are payable quarterly other than Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

(c) The effective income tax rates are generally lower than the statutory rate due to the relationship of pretax income to tax credits and earnings that are not subject to tax.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 2

Table 2: Consolidated Balance Sheet (Unaudited)

In millions, except par value	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015
Assets
Cash and due from banks	$	4,879		$	4,531		$	4,196		$	3,861		$	4,065
Interest-earning deposits with banks (a)		25,711			27,058			26,750			29,478			30,546
Loans held for sale (b)		2,504			2,053			2,296			1,541			1,540
Investment securities - available for sale		60,104			61,941			56,884			57,415			55,760
Investment securities - held to maturity		15,843			16,573			14,917			15,154			14,768
Loans (b)		210,833			210,446			209,056			207,485			206,696
Allowance for loan and lease losses		(2,589	)		(2,619	)		(2,685	)		(2,711	)		(2,727	)
Net loans		208,244			207,827			206,371			204,774			203,969
Equity investments (c)		10,728			10,605			10,469			10,391			10,587
Mortgage servicing rights		1,758			1,293			1,222			1,323			1,589
Goodwill		9,103			9,103			9,103			9,103			9,103
Other (b)		27,506			28,364			29,127			27,945			26,566
Total assets	$	366,380		$	369,348		$	361,335		$	360,985		$	358,493
Liabilities
Deposits
Noninterest-bearing	$	80,230		$	82,159		$	77,866		$	78,151		$	79,435
Interest-bearing		176,934			177,736			171,912			172,208			169,567
Total deposits		257,164			259,895			249,778			250,359			249,002
Borrowed funds
Federal Home Loan Bank borrowings		17,549			17,050			18,055			19,058			20,108
Bank notes and senior debt		22,972			22,431			23,588			21,594			21,298
Subordinated debt		8,009			8,708			8,764			8,707			8,556
Other (b)		4,176			3,352			4,164			4,819			4,570
Total borrowed funds		52,706			51,541			54,571			54,178			54,532
Allowance for unfunded loan commitments and letters of credit		301			310			303			282			261
Accrued expenses and other liabilities		9,281			10,757			9,984			9,838			8,718
Total liabilities		319,452			322,503			314,636			314,657			312,513
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares		2,709			2,709			2,709			2,708			2,708
Capital surplus		16,651			16,159			16,108			16,039			16,197
Retained earnings		31,670			30,958			30,309			29,642			29,043
Accumulated other comprehensive income (loss)		(191	)		646			736			532			130
Common stock held in treasury at cost: 57, 54, 49, 43 and 38 shares		(5,066	)		(4,765	)		(4,304	)		(3,791	)		(3,368	)
Total shareholders’ equity		45,773			45,707			45,558			45,130			44,710
Noncontrolling interests		1,155			1,138			1,141			1,198			1,270
Total equity		46,928			46,845			46,699			46,328			45,980
Total liabilities and equity	$	366,380		$	369,348		$	361,335		$	360,985		$	358,493

(a) Amounts include balances held with the Federal Reserve Bank of Cleveland of $25.1 billion, $26.6 billion, $26.3 billion, $29.0 billion, and $30.0 billion as of December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.

(b) Amounts include assets and liabilities for which PNC has elected the fair value option. Our third quarter 2016 Form 10-Q included, and our 2016 Form 10-K will include, additional information regarding these items.

(c) Amounts include our equity interest in BlackRock.

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

THE PNC FINANCIAL SERVICES GROUP, INC. Page 3

Table 3: Per Share Related Information (Unaudited)

	Three months ended										Year ended
In millions, except per share data	December 31 2016		September 30 2016		June 30 2016		March 31 2016		December 31 2015		December 31 2016		December 31 2015
Basic
Net income	$	1,047	$	1,006	$	989	$	943	$	1,022	$	3,985	$	4,143
Less:
Net income (loss) attributable to noncontrolling interests		22		18		23		19		14		82		37
Preferred stock dividends and discount accretion and redemptions (a)		43		64		43		65		43		215		225
Net income attributable to common shareholders		982		924		923		859		965		3,688		3,881
Less:
Dividends and undistributed earnings allocated to nonvested restricted shares		7		7		6		6		4		26		17
Net income attributable to basic common shares	$	975	$	917	$	917	$	853	$	961	$	3,662	$	3,864
Basic weighted-average common shares outstanding		487		490		497		501		506		494		514
Basic earnings per common share	$	2.01	$	1.87	$	1.84	$	1.70	$	1.90	$	7.42	$	7.52
Diluted
Net income attributable to basic common shares	$	975	$	917	$	917	$	853	$	961	$	3,662	$	3,864
Less: Impact of BlackRock earnings per share dilution		2		4		3		3		4		12		18
Net income attributable to diluted common shares	$	973	$	913	$	914	$	850	$	957	$	3,650	$	3,846
Basic weighted-average common shares outstanding		487		490		497		501		506		494		514
Dilutive potential common shares		7		6		6		6		7		6		7
Diluted weighted-average common shares outstanding		494		496		503		507		513		500		521
Diluted earnings per common share	$	1.97	$	1.84	$	1.82	$	1.68	$	1.87	$	7.30	$	7.39

(a) (a) Dividends are payable quarterly other than the Series O, Series R and Series S preferred stock, which are payable semiannually, with the Series O payable in different quarters than the Series R and Series S preferred stock.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 4

Table 4: Average Consolidated Balance Sheet (Unaudited) (a)

	Three months ended										Year ended
In millions	December 31 2016		September 30 2016		June 30 2016		March 31 2016		December 31 2015		December 31 2016		December 31 2015
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	26,374	$	25,825	$	24,856	$	24,696	$	23,777	$	25,442	$	21,371
Non-agency		3,303		3,490		3,728		3,936		4,089		3,613		4,374
Commercial mortgage-backed		6,283		6,276		6,335		6,586		6,709		6,369		6,372
Asset-backed		5,977		5,823		5,672		5,486		5,280		5,741		5,234
U.S. Treasury and government agencies		12,805		9,929		9,673		9,936		8,996		10,590		6,486
Other		5,237		5,166		5,004		4,847		4,611		5,064		4,344
Total securities available for sale		59,979		56,509		55,268		55,487		53,462		56,819		48,181
Securities held to maturity
Residential mortgage-backed		11,465		10,521		10,215		9,906		9,345		10,529		8,238
Commercial mortgage-backed		1,532		1,666		1,755		1,821		1,878		1,693		1,976
Asset-backed		585		702		708		715		723		677		738
U.S. Treasury and government agencies		444		264		262		259		257		308		253
Other		2,030		1,983		1,986		2,081		2,193		2,020		2,279
Total securities held to maturity		16,056		15,136		14,926		14,782		14,396		15,227		13,484
Total investment securities		76,035		71,645		70,194		70,269		67,858		72,046		61,665
Loans
Commercial		101,880		100,320		99,991		99,068		98,212		100,319		98,093
Commercial real estate		29,247		29,034		28,659		27,967		26,714		28,729		25,177
Equipment lease financing		7,398		7,463		7,570		7,420		7,501		7,463		7,570
Consumer		57,164		57,163		57,467		58,212		59,108		57,499		60,094
Residential real estate		15,193		14,870		14,643		14,517		14,486		14,807		14,415
Total loans		210,882		208,850		208,330		207,184		206,021		208,817		205,349
Interest-earning deposits with banks		25,245		28,063		26,463		25,533		31,509		26,328		32,908
Other interest-earning assets		7,983		8,174		7,449		7,764		8,475		7,843		8,903
Total interest-earning assets		320,145		316,732		312,436		310,750		313,863		315,034		308,825
Noninterest-earning assets		46,041		47,138		46,554		45,163		46,533		46,226		46,139
Total assets	$	366,186	$	363,870	$	358,990	$	355,913	$	360,396	$	361,260	$	354,964

(a) Calculated using average daily balances.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 5

Table 4: Average Consolidated Balance Sheet (Unaudited) (Continued) (a)

	Three months ended										Year ended
In millions	December 31 2016		September 30 2016		June 30 2016		March 31 2016		December 31 2015		December 31 2016		December 31 2015
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	67,271	$	70,076	$	72,442	$	76,392	$	81,199	$	71,530	$	81,911
Demand		55,223		53,428		52,218		49,770		47,778		52,701		46,649
Savings		35,224		31,791		28,131		23,343		17,851		29,643		14,719
Retail certificates of deposit		16,571		17,153		17,277		17,278		17,916		17,069		18,294
Time deposits in foreign offices and other time		1,838		1,757		1,779		2,040		2,709		1,821		2,392
Total interest-bearing deposits		176,127		174,205		171,847		168,823		167,453		172,764		163,965
Borrowed funds
Federal Home Loan Bank borrowings		17,465		17,524		18,716		19,855		20,796		18,385		21,365
Bank notes and senior debt		21,653		22,896		22,375		20,690		20,458		21,906		17,937
Subordinated debt		8,287		8,356		8,336		8,317		8,600		8,324		8,796
Other		4,127		4,205		4,206		4,764		5,159		4,324		8,415
Total borrowed funds		51,532		52,981		53,633		53,626		55,013		52,939		56,513
Total interest-bearing liabilities		227,659		227,186		225,480		222,449		222,466		225,703		220,478
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits		80,925		78,303		75,775		77,306		79,479		78,085		76,398
Accrued expenses and other liabilities		10,828		11,855		11,390		10,255		12,563		11,083		12,210
Equity		46,774		46,526		46,345		45,903		45,888		46,389		45,878
Total liabilities and equity	$	366,186	$	363,870	$	358,990	$	355,913	$	360,396	$	361,260	$	354,964
(a)    Calculated using average daily balances.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 6

Table 5: Details of Net Interest Margin (Unaudited) (a)

	Three months ended															Year ended
	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Average yields/rates
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency		2.30	%		2.39	%		2.46	%		2.57	%		2.55	%		2.43	%		2.53	%
Non-agency		5.18	%		5.06	%		4.79	%		4.45	%		4.90	%		4.84	%		4.73	%
Commercial mortgage-backed		2.25	%		2.47	%		2.94	%		2.79	%		2.85	%		2.62	%		3.06	%
Asset-backed		2.39	%		2.31	%		2.32	%		2.19	%		2.14	%		2.30	%		2.12	%
U.S. Treasury and government agencies		1.41	%		1.33	%		1.50	%		1.55	%		1.09	%		1.46	%		1.22	%
Other		2.97	%		2.99	%		3.02	%		2.99	%		3.11	%		3.00	%		3.36	%
Total securities available for sale		2.33	%		2.42	%		2.54	%		2.55	%		2.53	%		2.46	%		2.65	%
Securities held to maturity
Residential mortgage-backed		2.52	%		2.71	%		2.81	%		3.02	%		2.98	%		2.75	%		3.05	%
Commercial mortgage-backed		4.12	%		3.51	%		3.61	%		3.53	%		3.67	%		3.66	%		3.80	%
Asset-backed		2.29	%		1.99	%		1.91	%		1.84	%		1.61	%		2.07	%		1.49	%
U.S. Treasury and government agencies		3.25	%		3.81	%		3.79	%		3.80	%		3.82	%		3.57	%		3.95	%
Other		5.35	%		6.58	%		5.40	%		5.35	%		5.25	%		5.64	%		5.22	%
Total securities held to maturity		3.04	%		3.29	%		3.22	%		3.37	%		3.36	%		3.22	%		3.46	%
Total investment securities		2.48	%		2.60	%		2.68	%		2.72	%		2.71	%		2.62	%		2.83	%
Loans
Commercial		3.11	%		3.05	%		3.08	%		3.08	%		2.97	%		3.13	%		3.03	%
Commercial real estate		3.30	%		3.23	%		3.16	%		3.51	%		3.47	%		3.36	%		3.56	%
Equipment lease financing		3.33	%		4.06	%		3.44	%		3.40	%		3.41	%		3.56	%		3.43	%
Consumer		4.35	%		4.32	%		4.28	%		4.29	%		4.15	%		4.31	%		4.17	%
Residential real estate		4.64	%		4.60	%		4.84	%		4.74	%		4.79	%		4.70	%		4.84	%
Total loans		3.59	%		3.57	%		3.56	%		3.60	%		3.52	%		3.61	%		3.57	%
Interest-earning deposits with banks		.56	%		.50	%		.51	%		.50	%		.29	%		.52	%		.26	%
Other interest-earning assets		3.80	%		3.23	%		3.59	%		3.62	%		4.01	%		3.56	%		4.00	%
Total yield on interest-earning assets		3.09	%		3.07	%		3.10	%		3.15	%		3.03	%		3.13	%		3.08	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market		.21	%		.19	%		.20	%		.22	%		.25	%		.20	%		.26	%
Demand		.08	%		.08	%		.08	%		.07	%		.06	%		.08	%		.06	%
Savings		.42	%		.40	%		.39	%		.39	%		.33	%		.40	%		.22	%
Retail certificates of deposit		.71	%		.70	%		.70	%		.70	%		.69	%		.70	%		.69	%
Time deposits in foreign offices and other time		.23	%		.24	%		.24	%		.27	%		.16	%		.27	%		.17	%
Total interest-bearing deposits		.26	%		.25	%		.24	%		.25	%		.25	%		.25	%		.25	%
Borrowed funds
Federal Home Loan Bank borrowings		1.01	%		.86	%		.80	%		.68	%		.52	%		.84	%		.49	%
Bank notes and senior debt		1.55	%		1.50	%		1.62	%		1.66	%		1.11	%		1.61	%		1.24	%
Subordinated debt		3.05	%		3.06	%		3.26	%		3.29	%		2.65	%		3.17	%		2.68	%
Other		1.41	%		1.41	%		1.39	%		1.24	%		1.31	%		1.39	%		.94	%
Total borrowed funds		1.60	%		1.53	%		1.57	%		1.51	%		1.15	%		1.57	%		1.14	%
Total rate on interest-bearing liabilities		.56	%		.54	%		.56	%		.55	%		.47	%		.56	%		.47	%
Interest rate spread		2.53	%		2.53	%		2.54	%		2.60	%		2.56	%		2.57	%		2.61	%
Impact of noninterest-bearing sources (b)		.16			.15			.16			.15			.14			.16			.13
Net interest margin		2.69	%		2.68	%		2.70	%		2.75	%		2.70	%		2.73	%		2.74	%

(a) 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 net interest yields for all earning assets, interest income includes the effects of taxable-equivalent adjustments using a statutory federal income tax rate of 35% to increase tax-exempt interest income to a taxable-equivalent basis. This adjustment is not permitted under generally accepted accounting principles (GAAP) in the Consolidated Income Statement. The taxable-equivalent adjustments to net interest income for the three months ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, were $50 million, $49 million, $48 million, $48 million and $48 million, respectively. The taxable-equivalent adjustments to net interest income for the year ended December 31, 2016 and December 31, 2015 were $195 million and $196 million, respectively.

(b) Represents the positive effects of investing noninterest-bearing sources in interest-earning assets.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 7

Total and Core Net Interest Income and Net Interest Margin (Unaudited)

Table 6: Total and Core Net Interest Income (Non-GAAP)

	Three months ended										Year ended
In millions	December 31 2016		September 30 2016		June 30 2016		March 31 2016		December 31 2015		December 31 2016		December 31 2015
Core net interest income (Non-GAAP) (a)	$	2,064	$	2,033	$	2,004	$	2,012	$	2,002	$	8,113	$	7,859
Purchase accounting accretion (b)		66		62		64		86		90		278		419
Total net interest income	$	2,130	$	2,095	$	2,068	$	2,098	$	2,092	$	8,391	$	8,278

(a) We believe that core net interest income, a non-GAAP financial measure, is useful in evaluating the performance of our interest-based activities.

(b) Purchase accounting accretion includes purchase accounting accretion and cash recoveries on purchased impaired loans.

Table 7: Details of Net Interest Margin (c)

	Three months ended															Year ended
	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Average yields/rates
Yield on interest-earning assets
Total investment securities		2.48	%		2.60	%		2.68	%		2.72	%		2.71	%		2.62	%		2.83	%
Total loans		3.59	%		3.57	%		3.56	%		3.60	%		3.52	%		3.61	%		3.57	%
Other		1.33	%		1.12	%		1.18	%		1.23	%		1.08	%		1.21	%		1.06	%
Total yield on interest-earning assets		3.09	%		3.07	%		3.10	%		3.15	%		3.03	%		3.13	%		3.08	%
Rate on interest-bearing liabilities
Total interest-bearing deposits		.26	%		.25	%		.24	%		.25	%		.25	%		.25	%		.25	%
Total borrowed funds		1.60	%		1.53	%		1.57	%		1.51	%		1.15	%		1.57	%		1.14	%
Total rate on interest-bearing liabilities		.56	%		.54	%		.56	%		.55	%		.47	%		.56	%		.47	%
Interest rate spread		2.53	%		2.53	%		2.54	%		2.60	%		2.56	%		2.57	%		2.61	%
Impact of noninterest-bearing sources		.16			.15			.16			.15			.14			.16			.13
Net interest margin		2.69	%		2.68	%		2.70	%		2.75	%		2.70	%		2.73	%		2.74	%

(c) See note (a) on page 6.

Table 8: Details of Core Net Interest Margin (Non-GAAP) (d)

	Three months ended															Year ended
	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Average yields/rates
Yield on interest-earning assets
Total investment securities		2.44	%		2.57	%		2.64	%		2.68	%		2.66	%		2.58	%		2.77	%
Total loans		3.45	%		3.43	%		3.42	%		3.42	%		3.34	%		3.46	%		3.36	%
Other		1.31	%		1.11	%		1.18	%		1.24	%		1.06	%		1.20	%		1.05	%
Total yield on interest-earning assets		2.99	%		2.97	%		3.00	%		3.02	%		2.90	%		3.02	%		2.93	%
Rate on interest-bearing liabilities
Total interest-bearing deposits		.26	%		.25	%		.24	%		.25	%		.26	%		.25	%		.26	%
Total borrowed funds		1.46	%		1.38	%		1.44	%		1.38	%		1.02	%		1.43	%		1.02	%
Total rate on interest-bearing liabilities		.53	%		.51	%		.53	%		.52	%		.44	%		.53	%		.45	%
Interest rate spread		2.46	%		2.46	%		2.47	%		2.50	%		2.46	%		2.49	%		2.48	%
Impact of noninterest-bearing sources		.16			.15			.16			.15			.14			.16			.13
Core net interest margin (Non-GAAP)		2.62			2.61			2.63			2.65			2.60			2.65			2.61
Purchase accounting accretion impact on net interest margin		.07			.07			.07			.10			.10			.08			.13
Net interest margin (e)		2.69	%		2.68	%		2.70	%		2.75	%		2.70	%		2.73	%		2.74	%

(d) We believe that core net interest margin, a non-GAAP financial measure, is useful as a tool to help evaluate the impact of purchase accounting accretion on net interest margin. To calculate core net interest margin, each calculated margin in the table has been adjusted by annualized purchase accounting accretion divided by average interest-earning assets.

(e) See note (a) on page 6.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 8

Table 9: Details of Loans (Unaudited)

In millions	December 31 2016		September 30 2016		June 30 2016		March 31 2016		December 31 2015
Commercial
Retail/wholesale trade	$	16,752	$	17,211	$	16,786	$	16,736	$	16,661
Manufacturing		18,891		19,813		19,665		20,104		19,014
Service providers		14,707		14,159		14,258		14,141		13,970
Real estate related (a)		11,920		12,045		11,965		12,153		11,659
Financial services		7,241		7,203		7,400		6,084		7,234
Health care		9,491		9,148		9,092		9,106		9,210
Other industries		22,362		21,933		21,396		20,992		20,860
Total commercial		101,364		101,512		100,562		99,316		98,608
Commercial real estate
Real estate projects (b)		16,312		16,851		16,468		16,199		15,697
Commercial mortgage		12,698		12,422		12,372		12,031		11,771
Total commercial real estate		29,010		29,273		28,840		28,230		27,468
Equipment lease financing		7,581		7,378		7,620		7,584		7,468
Total commercial lending		137,955		138,163		137,022		135,130		133,544
Consumer
Home equity
Lines of credit		17,738		18,014		18,203		18,458		18,828
Installment		12,211		12,418		12,680		13,000		13,305
Credit card		5,282		5,029		4,896		4,746		4,862
Other consumer
Automobile		12,380		11,898		11,449		11,177		11,157
Education		5,159		5,337		5,482		5,701		5,881
Other		4,510		4,446		4,525		4,601		4,708
Total consumer		57,280		57,142		57,235		57,683		58,741
Residential real estate
Residential mortgage		15,381		14,915		14,562		14,425		14,162
Residential construction		217		226		237		247		249
Total residential real estate		15,598		15,141		14,799		14,672		14,411
Total consumer lending		72,878		72,283		72,034		72,355		73,152
Total loans (c)	$	210,833	$	210,446	$	209,056	$	207,485	$	206,696

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

(b) Includes both construction loans and intermediate financing for projects.

(c) Includes purchased impaired loans of $3.0 billion, $3.1 billion, $3.2 billion, $3.4 billion and $3.5 billion at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 9

Allowances for Loan and Lease Losses (Unaudited)

Table 10: Change in Allowance for Loan and Lease Losses

Three months ended - in millions	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015
Beginning balance	$	2,619		$	2,685		$	2,711		$	2,727		$	3,237
Gross charge-offs:
Commercial		(61	)		(107	)		(86	)		(78	)		(61	)
Commercial real estate		(4	)		(2	)		(10	)		(10	)		(15	)
Equipment lease financing		(1	)		(1	)		(2	)		(1	)		(3	)
Home equity		(28	)		(39	)		(28	)		(48	)		(42	)
Residential real estate		(3	)		(3	)					(8	)		(7	)
Credit card		(39	)		(39	)		(41	)		(42	)		(39	)
Other consumer		(58	)		(52	)		(46	)		(49	)		(49	)
Total gross charge-offs		(194	)		(243	)		(213	)		(236	)		(216	)
Recoveries:
Commercial		30			26			28			33			31
Commercial real estate		14			12			13			12			20
Equipment lease financing		1			7			1			1			1
Home equity		21			25			17			21			24
Residential real estate		2			2			2			3			3
Credit card		5			5			5			4			5
Other consumer		15			12			13			13			12
Total recoveries		88			89			79			87			96
Net (charge-offs) / recoveries:
Commercial		(31	)		(81	)		(58	)		(45	)		(30	)
Commercial real estate		10			10			3			2			5
Equipment lease financing					6			(1	)					(2	)
Home equity		(7	)		(14	)		(11	)		(27	)		(18	)
Residential real estate		(1	)		(1	)		2			(5	)		(4	)
Credit card		(34	)		(34	)		(36	)		(38	)		(34	)
Other consumer		(43	)		(40	)		(33	)		(36	)		(37	)
Total net charge-offs		(106	)		(154	)		(134	)		(149	)		(120	)
Provision for credit losses		67			87			127			152			74
Net recoveries / (write-offs) of purchased impaired loans and other					8			2			2			(469	)
Net change in allowance for unfunded loan commitments and letters of credit		9			(7	)		(21	)		(21	)		5
Ending balance	$	2,589		$	2,619		$	2,685		$	2,711		$	2,727
Supplemental Information
Net charge-offs to average loans (for the three months ended) (annualized)		.20	%		.29	%		.26	%		.29	%		.23	%
Allowance for loan and lease losses to total loans (a)		1.23			1.24			1.28			1.31			1.32
Commercial lending net charge-offs	$	(21	)	$	(65	)	$	(56	)	$	(43	)	$	(27	)
Consumer lending net charge-offs		(85	)		(89	)		(78	)		(106	)		(93	)
Total net charge-offs	$	(106	)	$	(154	)	$	(134	)	$	(149	)	$	(120	)
Net charge-offs to average loans
Commercial lending		.06	%		.19	%		.17	%		.13	%		.08	%
Consumer lending		.47	%		.49	%		.44	%		.59	%		.50	%

(a) See our 2015 Form 10-K for information on our change in derecognition policy effective December 31, 2015 for certain purchased impaired loans.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 10

Details of Nonperforming Assets (Unaudited)

Table 11: Nonperforming Assets by Type

In millions	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade	$	87		$	59		$	80		$	50		$	55
Manufacturing		31			43			69			83			79
Service providers		40			43			69			76			68
Real estate related (a)		47			68			73			36			40
Financial services		1			1			1			1			1
Health care		30			22			26			32			32
Other industries		260			285			288			274			76
Total commercial		496			521			606			552			351
Commercial real estate		143			152			143			160			187
Equipment lease financing		16			18			19			20			7
Total commercial lending		655			691			768			732			545
Consumer lending (b)
Home equity		914			895			926			957			977
Residential real estate		501			502			513			536			549
Credit card		4			4			4			4			3
Other consumer
Automobile		55			41			38			37			35
Education and other		15			13			15			15			17
Total consumer lending		1,489			1,455			1,496			1,549			1,581
Total nonperforming loans (c)(d)		2,144			2,146			2,264			2,281			2,126
OREO and foreclosed assets		230			229			251			271			299
Total nonperforming assets	$	2,374		$	2,375		$	2,515		$	2,552		$	2,425
Nonperforming loans to total loans		1.02	%		1.02	%		1.08	%		1.10	%		1.03	%
Nonperforming assets to total loans, OREO and foreclosed assets		1.12	%		1.13	%		1.20	%		1.23	%		1.17	%
Nonperforming assets to total assets		.65	%		.64	%		.70	%		.71	%		.68	%
Allowance for loan and lease losses to nonperforming loans (e)		121	%		122	%		119	%		119	%		128	%

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

(b) Excludes most consumer loans and lines of credit, not secured by residential real estate, which are charged off after 120 to 180 days past due and are not placed on nonperforming status.

(c) Nonperforming loans exclude certain government insured or guaranteed loans, loans held for sale, loans accounted for under the fair value option and purchased impaired loans.

(d) The recorded investment of loans collateralized by residential real estate property that are in process of foreclosure was $.4 billion, $.4 billion, $.4 billion, $.5 billion and $.6 billion at December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016 and December 31, 2015, which included $.2 billion, of loans that are government insured/guaranteed at December 31, 2016 and $.3 billion for all remaining periods presented.

(e) See our 2015 Form 10-K for information on our change in derecognition policy effective December 31, 2015 for certain purchased impaired loans.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 11

Details of Nonperforming Assets (Unaudited) (Continued)

Table 12: Change in Nonperforming Assets

In millions	October 1, 2016 - December 31, 2016			July 1, 2016 - September 30, 2016			April 1, 2016 - June 30, 2016			January 1, 2016- March 31, 2016			October 1, 2015 - December 31, 2015
Beginning balance	$	2,375		$	2,515		$	2,552		$	2,425		$	2,490
New nonperforming assets		518			370			405			542			370
Charge-offs and valuation adjustments		(132	)		(153	)		(158	)		(161	)		(132	)
Principal activity, including paydowns and payoffs		(279	)		(171	)		(149	)		(98	)		(143	)
Asset sales and transfers to loans held for sale		(57	)		(113	)		(76	)		(90	)		(68	)
Returned to performing status		(51	)		(73	)		(59	)		(66	)		(92	)
Ending balance	$	2,374		$	2,375		$	2,515		$	2,552		$	2,425

Table 13: Largest Individual Nonperforming Assets at December 31, 2016 (a)

In millions
Ranking	Outstandings		Industry
1		$46	Mining, Quarrying, Oil and Gas Extraction
2		37	Mining, Quarrying, Oil and Gas Extraction
3		26	Mining, Quarrying, Oil and Gas Extraction
4		24	Transportation and Warehousing
5		24	Mining, Quarrying, Oil and Gas Extraction
6		24	Mining, Quarrying, Oil and Gas Extraction
7		23	Mining, Quarrying, Oil and Gas Extraction
8		20	Mining, Quarrying, Oil and Gas Extraction
9		18	Wholesale Trade
10		18	Real Estate, Rental and Leasing
Total		$260
As a percent of total nonperforming assets 11%

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

THE PNC FINANCIAL SERVICES GROUP, INC. Page 12

Accruing Loans Past Due (Unaudited)

Table 14: Accruing Loans Past Due 30 to 59 Days (a)

	Amount										Percent of Total Outstandings
Dollars in millions	Dec. 31 2016		Sept. 30 2016		Jun. 30 2016		Mar. 31 2016		Dec. 31 2015		Dec. 31 2016			Sept. 30 2016			Jun. 30 2016			Mar. 31 2016			Dec. 31 2015
Commercial	$	81	$	64	$	61	$	85	$	69		.08	%		.06	%		.06	%		.09	%		.07	%
Commercial real estate		5		26		5		6		10		.02	%		.09	%		.02	%		.02	%		.04	%
Equipment lease financing		29		1		1		21		19		.38	%		.01	%		.01	%		.28	%		.25	%
Home equity		64		55		63		57		63		.21	%		.18	%		.20	%		.18	%		.20	%
Residential real estate
Non government insured		103		60		71		77		86		.66	%		.40	%		.48	%		.52	%		.60	%
Government insured		56		50		57		62		56		.36	%		.33	%		.39	%		.42	%		.39	%
Credit card		33		28		25		25		28		.62	%		.56	%		.51	%		.53	%		.58	%
Other consumer
Automobile		51		38		38		33		41		.41	%		.32	%		.33	%		.30	%		.37	%
Education and other
Non government insured		37		28		33		24		23		.38	%		.29	%		.33	%		.23	%		.22	%
Government insured		103		104		110		116		116		1.07	%		1.06	%		1.10	%		1.13	%		1.10	%
Total	$	562	$	454	$	464	$	506	$	511		.27	%		.22	%		.22	%		.24	%		.25	%
Table 15: Accruing Loans Past Due 60 to 89 Days (a)
	Amount										Percent of Total Outstandings
Dollars in millions	Dec. 31 2016		Sept. 30 2016		Jun. 30 2016		Mar. 31 2016		Dec. 31 2015		Dec. 31 2016			Sept. 30 2016			Jun. 30 2016			Mar. 31 2016			Dec. 31 2015
Commercial	$	20	$	24	$	34	$	18	$	32		.02	%		.02	%		.03	%		.02	%		.03	%
Commercial real estate		2		1		11		1		4		.01	%		.00	%		.04	%		.00	%		.01	%
Equipment lease financing		1		2		4				2		.01	%		.03	%		.05	%					.03	%
Home equity		30		27		27		27		30		.10	%		.09	%		.09	%		.09	%		.09	%
Residential real estate
Non government insured		18		20		18		17		20		.12	%		.13	%		.12	%		.12	%		.14	%
Government insured		50		51		47		44		45		.32	%		.34	%		.32	%		.30	%		.31	%
Credit card		21		19		17		17		19		.40	%		.38	%		.35	%		.36	%		.39	%
Other consumer
Automobile		12		11		10		8		10		.10	%		.09	%		.09	%		.07	%		.09	%
Education and other
Non government insured		12		13		11		13		11		.12	%		.13	%		.11	%		.13	%		.10	%
Government insured		66		68		64		64		75		.68	%		.70	%		.64	%		.62	%		.71	%
Total	$	232	$	236	$	243	$	209	$	248		.11	%		.11	%		.12	%		.10	%		.12	%
Table 16: Accruing Loans Past Due 90 Days or More (a)
	Amount										Percent of Total Outstandings
Dollars in millions	Dec. 31 2016		Sept. 30 2016		Jun. 30 2016		Mar. 31 2016		Dec. 31 2015		Dec. 31 2016			Sept. 30 2016			Jun. 30 2016			Mar. 31 2016			Dec. 31 2015
Commercial	$	39	$	37	$	38	$	39	$	45		.04	%		.04	%		.04	%		.04	%		.05	%
Residential real estate
Non government insured		24		18		23		23		21		.15	%		.12	%		.16	%		.16	%		.15	%
Government insured		476		478		466		483		545		3.05	%		3.16	%		3.15	%		3.29	%		3.78	%
Credit card		37		31		30		32		33		.70	%		.62	%		.61	%		.67	%		.68	%
Other consumer
Automobile		5		4		3		3		4		.04	%		.03	%		.03	%		.03	%		.04	%
Education and other
Non government insured		10		9		10		9		13		.10	%		.09	%		.10	%		.09	%		.12	%
Government insured		191		189		184		193		220		1.98	%		1.93	%		1.84	%		1.87	%		2.08	%
Total	$	782	$	766	$	754	$	782	$	881		.37	%		.36	%		.36	%		.38	%		.43	%

(a) Excludes loans held for sale and purchased impaired loans.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 13

Business Segment Descriptions (Unaudited)

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 banking and mobile channels. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, Florida, North Carolina, Kentucky, Washington, D.C., Delaware, Virginia, Alabama, Georgia, Missouri, Wisconsin and South Carolina.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, government and not-for-profit entities. 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, securities, loan syndications, mergers and acquisitions advisory and equity capital markets advisory related services. We also provide commercial loan servicing and technology solutions for the commercial real estate finance industry. Products and services are generally provided 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 investment and retirement planning, customized investment management, private banking, tailored credit solutions, and trust management and administration for individuals and their families. Our Hawthorn unit provides multi-generational family planning including wealth strategy, investment management, private banking, tax and estate planning guidance, performance reporting and personal administration services to ultra high net worth families. Institutional asset management provides advisory, custody administration and retirement administration services. The business also offers PNC proprietary mutual funds and investment strategies. Institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments, primarily located in our geographic footprint.

Residential Mortgage Banking directly originates first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint. 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 either sold, servicing retained, or held on PNC’s balance sheet. Loan sales are primarily to secondary mortgage conduits of Federal National Mortgage Association (FNMA), Federal Home Loan Mortgage Corporation (FHLMC), Federal Home Loan Banks and third-party investors, or are securitized and issued under the Government National Mortgage Association (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.

Non-Strategic Assets Portfolio includes a consumer portfolio of mainly residential mortgage and brokered home equity loans and lines of credit, and a small commercial lending portfolio. We obtained a significant portion of these non-strategic assets through acquisitions of other companies.

BlackRock, in which we hold an equity investment, is a leading publicly traded investment management firm providing a broad range of investment and risk management services to institutional and retail clients worldwide. Using a diverse platform of active and index investment strategies across asset classes, BlackRock develops investment outcomes and asset allocation solutions for clients. Product offerings include single- and multi-asset class portfolios investing in equities, fixed income, alternatives and money market instruments. BlackRock also offers an investment and risk management technology platform, risk analytics and advisory services and solutions to a broad base of institutional investors. Our equity investment in BlackRock provides us with an additional source of noninterest income and increases our overall revenue diversification. BlackRock is a publicly traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At December 31, 2016, our economic interest in BlackRock was 22%.

Table 17: Period End Employees

	December 31 2016		September 30 2016		June 30 2016		March 31 2016		December 31 2015
Full-time employees
Retail Banking		21,535		21,654		21,649		21,903		21,896
Other full-time employees		27,825		27,597		27,365		27,331		27,252
Total full-time employees		49,360		49,251		49,014		49,234		49,148
Part-time employees
Retail Banking		2,269		2,354		2,595		2,684		2,877
Other part-time employees		377		438		781		462		488
Total part-time employees		2,646		2,792		3,376		3,146		3,365
Total		52,006		52,043		52,390		52,380		52,513

THE PNC FINANCIAL SERVICES GROUP, INC. Page 14

Table 18: Summary of Business Segment Income and Revenue (Unaudited) (a) (b)

	Three months ended												Year ended
In millions	December 31 2016		September 30 2016		June 30 2016		March 31 2016			December 31 2015			December 31 2016		December 31 2015
Income (Loss)
Retail Banking	$	229	$	223	$	307	$	268		$	213		$	1,027	$	907
Corporate & Institutional Banking		577		537		490		431			539			2,035		2,031
Asset Management Group		55		58		48		49			51			210		194
Residential Mortgage Banking		39		13		46		(13	)		(17	)		85		26
Non-Strategic Assets Portfolio		58		54		29		52			96			193		301
Other, including BlackRock (b) (c)		89		121		69		156			140			435		684
Net income	$	1,047	$	1,006	$	989	$	943		$	1,022		$	3,985	$	4,143
Revenue
Retail Banking	$	1,619	$	1,647	$	1,682	$	1,650		$	1,645		$	6,598	$	6,449
Corporate & Institutional Banking		1,428		1,390		1,387		1,304			1,419			5,509		5,429
Asset Management Group		288		294		289		280			288			1,151		1,161
Residential Mortgage Banking		209		191		210		130			155			740		734
Non-Strategic Assets Portfolio		86		80		78		97			109			341		445
Other, including BlackRock (b) (c)		244		227		148		204			237			823		1,007
Total revenue	$	3,874	$	3,829	$	3,794	$	3,665		$	3,853		$	15,162	$	15,225

(a) Our business information is presented based on our internal management reporting practices. We periodically refine our internal methodologies as management reporting practices are enhanced. Net interest income in business segment results reflects PNC’s internal funds transfer pricing methodology. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.

(b) We consider BlackRock to be a separate reportable business segment but have combined its results with Other for this presentation. Our 2016 Form 10-K will include additional information regarding BlackRock.

(c) Includes earnings and gains or losses related to PNC’s equity interest in BlackRock and 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.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 15

Table 19: Retail Banking (Unaudited) (a)

	Three months ended															Year ended
Dollars in millions	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Income Statement
Net interest income	$	1,105		$	1,120		$	1,118		$	1,113		$	1,074		$	4,456		$	4,226
Noninterest income		514			527			564			537			571			2,142			2,223
Total revenue		1,619			1,647			1,682			1,650			1,645			6,598			6,449
Provision for credit losses		74			104			29			77			108			284			259
Noninterest expense		1,184			1,191			1,168			1,150			1,203			4,693			4,761
Pretax earnings		361			352			485			423			334			1,621			1,429
Income taxes		132			129			178			155			121			594			522
Earnings	$	229		$	223		$	307		$	268		$	213		$	1,027		$	907
Average Balance Sheet
Loans
Consumer
Home equity	$	25,768		$	26,005		$	26,308		$	26,743		$	27,202		$	26,204		$	27,657
Automobile		11,868			11,353			10,978			10,787			10,608			11,248			10,433
Education		5,289			5,454			5,642			5,865			6,026			5,562			6,307
Credit cards		5,099			4,943			4,788			4,722			4,675			4,889			4,527
Other		1,762			1,783			1,793			1,823			1,870			1,790			1,881
Total consumer		49,786			49,538			49,509			49,940			50,381			49,693			50,805
Commercial and commercial real estate		11,788			11,937			12,319			12,551			12,588			12,147			12,705
Residential mortgage		471			508			536			596			609			528			680
Total loans	$	62,045		$	61,983		$	62,364		$	63,087		$	63,578		$	62,368		$	64,190
Total assets	$	71,252		$	71,219		$	71,544		$	72,216		$	72,677		$	71,556		$	73,240
Deposits
Noninterest-bearing demand	$	28,111		$	27,523		$	26,945		$	26,209		$	26,395		$	27,200		$	24,119
Interest-bearing demand		39,216			38,539			38,897			37,860			36,726			38,629			36,189
Money market		42,041			44,243			47,072			50,405			53,981			45,926			54,576
Savings		32,111			29,268			26,128			21,780			16,991			27,340			14,358
Certificates of deposit		14,172			14,631			15,048			15,350			15,789			14,798			16,518
Total deposits	$	155,651		$	154,204		$	154,090		$	151,604		$	149,882		$	153,893		$	145,760
Performance Ratios
Return on average assets		1.28	%		1.24	%		1.72	%		1.51	%		1.16	%		1.44	%		1.24	%
Noninterest income to total revenue		32	%		32	%		34	%		33	%		35	%		32	%		34	%
Efficiency		73	%		72	%		69	%		70	%		73	%		71	%		74	%
Supplemental Noninterest Income Information
Service charges on deposits	$	165		$	168		$	155		$	151		$	164		$	639		$	623
Brokerage	$	73		$	73		$	74		$	75		$	72		$	295		$	284
Consumer services	$	269		$	267		$	271		$	254		$	268		$	1,061		$	1,015
Other information (b)
Customer-related statistics (average):
Non-teller deposit transactions (c)		51	%		50	%		48	%		47	%		46	%		49	%		43	%
Digital consumer customers (d)		60	%		59	%		57	%		56	%		55	%		58	%		52	%
Credit-related statistics:
Nonperforming assets	$	1,003		$	970		$	995		$	1,023		$	1,045
Net charge-offs	$	89		$	89		$	75		$	96		$	93		$	349		$	344
Other statistics:
ATMs		9,024			9,045			8,993			8,940			8,956
Branches (e)		2,520			2,600			2,601			2,613			2,616
Universal branches (f)		526			475			467			362			359
Brokerage account client assets (billions) (g)	$	44		$	44		$	44		$	43		$	43

(a) See note (a) on page 14.

(b) Presented as of period end, except for customer-related statistics which are averages for the quarterly and year-to-date periods, respectively, and net charge-offs which are for the three months and year ended, respectively.

(c) Percentage of total consumer and business banking deposit transactions processed at an ATM or through our mobile banking application.

(d) Represents consumer checking relationships that process the majority of their transactions through non-teller channels.

(e) Excludes satellite offices (e.g., drive-ups, electronic branches and retirement centers) that provide limited products and/or services.

(f) Included in total branches, represents branches operating under our Universal model.

(g) Amounts include cash and money market balances.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 16

Table 20: Corporate & Institutional Banking (Unaudited) (a)

	Three months ended															Year ended
Dollars in millions	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Income Statement
Net interest income	$	906		$	873		$	854		$	870		$	881		$	3,503		$	3,494
Noninterest income		522			517			533			434			538			2,006			1,935
Total revenue		1,428			1,390			1,387			1,304			1,419			5,509			5,429
Provision for credit losses (benefit)		(1	)		12			69			107			23			187			106
Noninterest expense		550			555			549			521			554			2,175			2,148
Pretax earnings		879			823			769			676			842			3,147			3,175
Income taxes		302			286			279			245			303			1,112			1,144
Earnings	$	577		$	537		$	490		$	431		$	539		$	2,035		$	2,031
Average Balance Sheet
Loans held for sale	$	965		$	994		$	801		$	708		$	944		$	868		$	966
Loans
Commercial	$	90,166		$	88,481		$	87,741		$	86,645		$	85,750		$	88,264		$	85,416
Commercial real estate		27,023			26,866			26,497			25,817			24,520			26,553			23,036
Equipment lease financing		6,747			6,817			6,929			6,783			6,865			6,819			6,940
Total commercial lending		123,936			122,164			121,167			119,245			117,135			121,636			115,392
Consumer		349			394			441			499			553			420			866
Total loans	$	124,285		$	122,558		$	121,608		$	119,744		$	117,688		$	122,056		$	116,258
Total assets	$	140,681		$	139,806		$	138,305		$	135,521		$	133,083		$	138,587		$	132,032
Deposits
Noninterest-bearing demand	$	47,931		$	45,957		$	44,213		$	46,962		$	48,763		$	46,269		$	48,318
Money market		21,537			21,979			21,141			21,229			21,788			21,473			22,185
Other		16,122			15,041			12,958			11,316			11,414			13,869			10,189
Total deposits	$	85,590		$	82,977		$	78,312		$	79,507		$	81,965		$	81,611		$	80,692
Performance Ratios
Return on average assets		1.63	%		1.52	%		1.42	%		1.29	%		1.61	%		1.47	%		1.54	%
Noninterest income to total revenue		37	%		37	%		38	%		33	%		38	%		36	%		36	%
Efficiency		39	%		40	%		40	%		40	%		39	%		39	%		40	%
Other Information
Commercial loan servicing portfolio (in billions) (b) (c)	$	487		$	461		$	459		$	453		$	447
Consolidated revenue from: (d)
Treasury Management (e)	$	407		$	400		$	385		$	377		$	389		$	1,569		$	1,388
Capital Markets (e)	$	208		$	213		$	235		$	152		$	221		$	808		$	813
Commercial mortgage banking activities
Commercial mortgage loans held for sale (f)	$	50		$	27		$	24		$	26		$	46		$	127		$	140
Commercial mortgage loan servicing income (g)		63			66			66			66			70			261			261
Commercial mortgage servicing rights valuation, net of economic hedge (h)		22			1			20			1			3			44			28
Total	$	135		$	94		$	110		$	93		$	119		$	432		$	429
Average Loans (by C&IB business)
Corporate Banking	$	59,126		$	58,238		$	57,700		$	56,166		$	56,784		$	57,813		$	57,774
Real Estate		37,262			36,721			36,193			35,784			33,361			36,493			31,312
Business Credit		14,741			14,772			14,865			14,672			14,945			14,763			14,615
Equipment Finance		11,445			11,125			11,143			11,014			10,948			11,182			10,954
Other		1,711			1,702			1,707			2,108			1,650			1,805			1,603
Total average loans	$	124,285		$	122,558		$	121,608		$	119,744		$	117,688		$	122,056		$	116,258
Net carrying amount of commercial mortgage servicing rights (c)	$	576		$	473		$	448		$	460		$	526
Credit-related statistics:
Nonperforming assets (c)	$	654		$	671		$	752		$	701		$	518
Net charge-offs	$	18		$	69		$	59		$	41		$	24		$	187		$	30

(a) See note (a) on page 14.

(b) Represents loans serviced for PNC and others.

(c) Presented as of period end.

(d) Represents consolidated PNC amounts.

(e) Includes amounts reported in net interest income, corporate service fees and other noninterest income.

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

(g) Includes net interest income and noninterest income, primarily in corporate services fees, from loan servicing and ancillary services, net of changes in fair value on commercial mortgage servicing rights due to time and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(h) Includes amounts reported in corporate service fees.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 17

Table 21: Asset Management Group (Unaudited) (a)

	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Income Statement
Net interest income	$	73		$	74		$	76		$	77		$	77		$	300		$	292
Noninterest income		215			220			213			203			211			851			869
Total revenue		288			294			289			280			288			1,151			1,161
Provision for credit losses (benefit)		(6	)		(3	)		6			(3	)		(2	)		(6	)		9
Noninterest expense		207			206			206			206			210			825			846
Pretax earnings		87			91			77			77			80			332			306
Income taxes		32			33			29			28			29			122			112
Earnings	$	55		$	58		$	48		$	49		$	51		$	210		$	194
Average Balance Sheet
Loans
Consumer	$	5,266		$	5,350		$	5,501		$	5,630		$	5,653		$	5,436		$	5,655
Commercial and commercial real estate		738			721			769			788			817			754			880
Residential mortgage		1,137			1,069			1,023			1,003			979			1,058			919
Total loans	$	7,141		$	7,140		$	7,293		$	7,421		$	7,449		$	7,248		$	7,454
Total assets	$	7,597		$	7,588		$	7,756		$	7,887		$	7,917		$	7,707		$	7,920
Deposits
Noninterest-bearing demand	$	1,497		$	1,426		$	1,393		$	1,407		$	1,466		$	1,431		$	1,272
Interest-bearing demand		3,844			3,845			4,085			4,280			4,199			4,013			4,144
Money market		3,682			3,850			4,229			4,758			5,426			4,128			5,161
Savings		3,113			2,524			2,002			1,563			859			2,303			361
Other		272			275			279			275			266			275			277
Total deposits	$	12,408		$	11,920		$	11,988		$	12,283		$	12,216		$	12,150		$	11,215
Performance Ratios
Return on average assets		2.87	%		3.03	%		2.48	%		2.52	%		2.56	%		2.72	%		2.45	%
Noninterest income to total revenue		75	%		75	%		74	%		73	%		73	%		74	%		75	%
Efficiency		72	%		70	%		71	%		74	%		73	%		72	%		73	%
Other Information
Nonperforming assets (b)	$	53		$	51		$	48		$	54		$	53
Net charge-offs (recoveries)	$	2		$	1		$	2		$	4		$	(1	)	$	9		$	13
Client Assets Under Administration (in billions) (b) (c) (d)
Discretionary client assets under management	$	137		$	138		$	135		$	135		$	134
Nondiscretionary client assets under administration		129			128			126			125			125
Total	$	266		$	266		$	261		$	260		$	259
Discretionary client assets under management
Personal	$	85		$	85		$	84		$	84		$	85
Institutional		52			53			51			51			49
Total	$	137		$	138		$	135		$	135		$	134
Equity	$	73		$	73		$	72		$	72		$	72
Fixed income		39			40			40			40			40
Liquidity/Other		25			25			23			23			22
Total	$	137		$	138		$	135		$	135		$	134

(a) See note (a) on page 14.

(b) As of period end.

(c) Excludes brokerage account client assets.

(d) As a result of certain investment advisory services performed by one of our registered investment advisors, certain assets are reported as both discretionary client assets under management and nondiscretionary client assets under administration. The amount of such assets was approximately $9 billion, $9 billion, $9 billion, $7 billion, and $6 billion as of December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 18

Table 22: Residential Mortgage Banking (Unaudited) (a)

	Three months ended															Year ended
Dollars in millions, except as noted	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Income Statement
Net interest income	$	26		$	28		$	28		$	25		$	30		$	107		$	121
Noninterest income		183			163			182			105			125			633			613
Total revenue		209			191			210			130			155			740			734
Provision for credit losses (benefit)		—			—			1			(1	)		—			—			2
Noninterest expense		148			170			136			152			181			606			691
Pretax earnings (loss)		61			21			73			(21	)		(26	)		134			41
Income taxes (benefit)		22			8			27			(8	)		(9	)		49			15
Earnings (loss)	$	39		$	13		$	46		$	(13	)	$	(17	)	$	85		$	26
Average Balance Sheet
Loans held for sale	$	1,058		$	1,046		$	843		$	800		$	949		$	937		$	1,107
Loans	$	946		$	946		$	962		$	1,028		$	1,037		$	970		$	1,140
Mortgage servicing rights (MSR)	$	1,076		$	842		$	903		$	995		$	1,063		$	954		$	991
Total assets	$	5,980		$	6,160		$	5,768		$	6,306		$	6,477		$	6,053		$	6,840
Total deposits	$	2,906		$	2,947		$	2,777		$	2,330		$	2,469		$	2,741		$	2,428
Performance Ratios
Return on average assets		2.59	%		.84	%		3.20	%		(.84	)%		(1.04	)%		1.40	%		.38	%
Noninterest income to total revenue		88	%		85	%		87	%		81	%		81	%		86	%		84	%
Efficiency		71	%		89	%		65	%		117	%		117	%		82	%		94	%
Residential Mortgage Servicing Portfolio (in billions except where noted) (b)
Serviced portfolio balance (c)	$	125		$	126		$	126		$	125		$	123
Portfolio acquisitions	$	3		$	5		$	6		$	5		$	5		$	19		$	29
MSR asset value (c)	$	1.2		$	.8		$	.8		$	.9		$	1.1
MSR capitalization value (in basis points) (c)		94			65			61			69			86
Consolidated revenue from: (in millions) (d)
Servicing fees	$	42		$	45		$	50		$	55		$	52		$	192		$	178
Mortgage servicing rights valuation, net of economic hedge	$	35		$	30		$	35		$	(8	)	$	6		$	92		$	89
Other Information
Loan origination volume (in billions)	$	3.0		$	3.1		$	2.6		$	1.9		$	2.3		$	10.6		$	10.5
Loan sale margin percentage		2.79	%		3.33	%		3.42	%		3.21	%		2.91	%		3.17	%		3.32	%
Loan sales revenue (e)	$	82		$	103		$	95		$	64		$	64		$	344		$	342
Percentage of originations represented by:
Purchase volume (f)		33	%		41	%		48	%		40	%		45	%		40	%		45	%
Refinance volume		67	%		59	%		52	%		60	%		55	%		60	%		55	%
Nonperforming assets (c)	$	51		$	57		$	65		$	75		$	81

(a) See note (a) on page 14.

(b) Represents loans serviced for third parties.

(c) As of period end.

(d) Represents consolidated PNC amounts.

(e) Amounts include intercompany loan sales revenue from affiliates that is eliminated in consolidation of $17 million, $18 million, $15 million, $11 million and $9 million for the quarters ended December 31, 2016, September 30, 2016, June 30, 2016, March 31, 2016, and December 31, 2015, respectively, and $61 million and $43 million for the years ended December 31, 2016 and 2015, respectively.

(f) Mortgages with borrowers as part of residential real estate purchase transactions.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 19

Table 23: Non-Strategic Assets Portfolio (Unaudited) (a)

	Three months ended															Year ended
Dollars in millions	December 31 2016			September 30 2016			June 30 2016			March 31 2016			December 31 2015			December 31 2016			December 31 2015
Income Statement
Net interest income	$	78		$	72		$	73		$	75		$	90		$	298		$	392
Noninterest income		8			8			5			22			19			43			53
Total revenue		86			80			78			97			109			341			445
Provision for credit losses (benefit)		(14	)		(22	)		13			(7	)		(53	)		(30	)		(114	)
Noninterest expense		9			16			20			21			10			66			83
Pretax earnings		91			86			45			83			152			305			476
Income taxes		33			32			16			31			56			112			175
Earnings	$	58		$	54		$	29		$	52		$	96		$	193		$	301
Average Balance Sheet
Loans
Commercial lending	$	695		$	698		$	701		$	708		$	722		$	700		$	737
Consumer lending
Home equity		1,764			1,884			2,018			2,144			2,523			1,952			2,774
Residential real estate		2,885			2,999			3,132			3,245			3,565			3,065			3,877
Total consumer lending		4,649			4,883			5,150			5,389			6,088			5,017			6,651
Total loans		5,344			5,581			5,851			6,097			6,810			5,717			7,388
Other assets (b)		(274	)		(279	)		(312	)		(281	)		(623	)		(265	)		(682	)
Total assets	$	5,070		$	5,302		$	5,539		$	5,816		$	6,187		$	5,452		$	6,706
Performance Ratios
Return on average assets		4.54	%		4.04	%		2.10	%		3.63	%		6.16	%		3.54	%		4.49	%
Noninterest income to total revenue		9	%		10	%		6	%		23	%		17	%		13	%		12	%
Efficiency		10	%		20	%		26	%		22	%		9	%		19	%		19	%
Other Information
Nonperforming assets (c)	$	410		$	433		$	460		$	499		$	529
Purchased impaired loans (c) (d)	$	2,419		$	2,512		$	2,628		$	2,737		$	2,839
Net charge-offs (recoveries)	$	(3	)	$	(6	)	$	(2	)	$	8		$	4		$	(3	)	$	(4	)
Loans (c)
Commercial lending	$	693		$	693		$	696		$	703		$	713
Consumer lending
Home equity		1,707			1,826			1,952			2,088			2,203
Residential real estate		2,824			2,933			3,062			3,190			3,300
Total consumer lending		4,531			4,759			5,014			5,278			5,503
Total loans	$	5,224		$	5,452		$	5,710		$	5,981		$	6,216

(a) See note (a) on page 14.

(b) Other assets were negative in all periods presented due to the allowance for loan and lease losses.

(c) As of period end.

(d) Recorded investment of purchased impaired loans related to acquisitions.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 20

Glossary Of Terms

Accretable net interest (Accretable yield) - The excess of cash flows expected to be collected on a purchased impaired loan over the carrying value of the loan. The accretable net interest is recognized into interest income over the remaining life of the loan using the constant effective yield method.

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.

Basel III common equity Tier 1 capital - Common stock plus related surplus, net of treasury stock, plus retained earnings, plus accumulated other comprehensive income for securities currently and previously held as available for sale, plus accumulated other comprehensive income for pension and other postretirement benefit plans, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments.

Basel III common equity Tier 1 capital ratio - Common equity Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Tier 1 capital - Common equity Tier 1 capital, plus preferred stock, plus certain trust preferred capital securities, plus certain noncontrolling interests that are held by others and plus/less other adjustments.

Basel III Tier 1 capital ratio - Tier 1 capital divided by period-end risk-weighted assets (as applicable).

Basel III Total capital - Tier 1 capital plus qualifying subordinated debt, plus certain trust preferred securities, plus, under the Basel III transitional rules and the standardized approach, the allowance for loan and lease losses included in Tier 2 capital and other.

Basel III Total capital ratio - Total capital divided by period-end risk-weighted assets (as applicable).

Basis point - One hundredth of a percentage point.

Carrying value of purchased impaired loans - The net value on the balance sheet which represents the recorded investment less any valuation allowance.

Cash recoveries - Cash recoveries used in the context of purchased impaired loans represent cash payments for a single purchased impaired loan not included within a pool of loans from customers that exceeded the recorded investment of that loan.

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 from portfolio holdings to held for sale by reducing the loan carrying amount to the fair value of the loan, if fair value is less than carrying amount.

Combined loan-to-value ratio (CLTV) - This is the aggregate principal balance(s) of the mortgages on a property divided by its appraised value or purchase price.

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.

Core net interest income - Core net interest income is total net interest income less purchase accounting accretion.

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.

Credit valuation adjustment (CVA) – Represents an adjustment to the fair value of our derivatives for our own and counterparties’ non-performance risk.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 21

Criticized commercial loans – Loans with potential or identified weaknesses based upon internal risk ratings that comply with the regulatory classification definitions of “Special Mention,” “Substandard” or “Doubtful.”

Derivatives - Financial contracts whose value is derived from changes in publicly traded securities, interest rates, currency exchange rates or market indices. Derivatives cover a wide assortment of financial contracts, including but not limited to forward contracts, futures, options and swaps.

Discretionary client 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.

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 increases 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; interest-earning deposits with banks; loans held for sale; loans; investment securities; and certain other assets.

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 total revenue.

Fair value - The price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date.

Fee income - When referring to the components of Noninterest income, we use the term fee income to refer to the following categories within Noninterest income: Asset management; Consumer services; Corporate services; Residential mortgage; and Service charges on deposits.

FICO score - A credit bureau-based industry standard score created by Fair Isaac Co. which predicts the likelihood of borrower default. We use FICO scores both in underwriting and assessing credit risk in our consumer lending portfolio. Lower FICO scores indicate likely higher risk of default, while higher FICO scores indicate likely lower risk of default. FICO scores are updated on a periodic basis.

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. Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product repricing characteristics, tenor and other factors.

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 - Loans are determined to be impaired when, based on current information and events, it is probable that all contractually required payments will not be collected. Impaired loans include commercial nonperforming loans and consumer and commercial TDRs, regardless of nonperforming status. Excluded from impaired loans are nonperforming leases, loans held for sale, loans accounted for under the fair value option, smaller balance homogenous type loans and purchased impaired loans.

Leverage ratio - Tier 1 capital divided by average quarterly adjusted 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. PNC’s product set includes loans priced using LIBOR as a benchmark.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 22

Loan-to-value ratio (LTV) - A calculation of a loan’s collateral coverage that is used both in underwriting and assessing credit risk in our lending portfolio. LTV is the sum total of loan obligations secured by collateral divided by the market value of that same collateral. Market values of the collateral are based on an independent valuation of the collateral. For example, a LTV of less than 90% is better secured and has less credit risk than a LTV of greater than or equal to 90%.

Loss given default (LGD) - An estimate of loss, net of recovery based on collateral type, collateral value, loan exposure, and other factors. Each loan has its own LGD. The LGD risk rating measures the percentage of exposure of a specific credit obligation that we expect to lose if default occurs. LGD is net of recovery, through any means, including but not limited to the liquidation of collateral or deficiency judgments rendered from foreclosure or bankruptcy proceedings.

Net interest margin - Annualized taxable-equivalent net interest income divided by average earning assets.

Nonaccretable difference - Contractually required payments receivable on a purchased impaired loan in excess of the cash flows expected to be collected.

Nonaccrual loans - Loans for which we do not accrue interest income. Nonaccrual loans include nonperforming loans, in addition to loans accounted for under fair value option and loans accounted for as held for sale for which full collection of contractual principal and/or interest is not probable.

Nondiscretionary client assets under administration - Assets we hold for our customers/clients in a nondiscretionary, custodial capacity. We do not include these assets on our Consolidated Balance Sheet.

Nonperforming assets - Nonperforming assets include nonperforming loans and OREO and foreclosed assets, but exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale, loans accounted for under the fair value option and purchased impaired loans. We do not accrue interest income on assets classified as nonperforming.

Nonperforming loans - Loans accounted for at amortized cost for which we do not accrue interest income. Nonperforming loans include loans to commercial, commercial real estate, equipment lease financing, home equity, residential real estate, credit card and other consumer customers as well as TDRs which have not returned to performing status. Nonperforming loans exclude certain government insured or guaranteed loans for which we expect to collect substantially all principal and interest, loans held for sale, loans accounted for under the fair value option and purchased impaired loans. Nonperforming loans exclude purchased impaired loans as we are currently accreting interest income over the expected life of the loans.

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

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).

Options - Contracts that grant the purchaser, for a premium payment, the right, but not the obligation, to either purchase or sell the associated financial instrument at a set price during a specified period or at a specified date in the future.

Other real estate owned (OREO) and foreclosed assets - Assets taken in settlement of troubled loans primarily through deed-in-lieu of foreclosure or foreclosure. Foreclosed assets include real and personal property, equity interests in corporations, partnerships, and limited liability companies. Excludes certain assets that have a government-guarantee which are classified as other receivables.

Other-than-temporary impairment (OTTI) - When the fair value of a security is less than its amortized cost basis, an assessment is performed to determine whether the impairment is other-than-temporary. If we intend to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis less any current-period credit loss, an other-than-temporary impairment is considered to have occurred. In such cases, an other-than-temporary impairment is recognized in earnings equal to the entire difference between the investment’s amortized cost basis and its fair value at the balance sheet date. Further, if we do not expect to recover the entire amortized cost of the security, an other-than-temporary impairment is considered to have occurred. However for debt securities, if we do not intend to sell the security and it is not more likely than not that we will be required to sell the security before its recovery, the other-than-temporary loss is separated into (a) the amount representing the credit loss, and (b) the amount related to all other factors. The other-than-temporary impairment related to credit losses is recognized in earnings while the amount related to all other factors is recognized in other comprehensive income, net of tax.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 23

Parent company liquidity coverage - Liquid assets divided by funding obligations within a two year period.

Pretax earnings - Income before income taxes and noncontrolling interests.

Probability of default (PD) - An internal risk rating that indicates the likelihood that a credit obligor will enter into default status.

Purchase accounting accretion - Accretion of the discounts and premiums on acquired assets and liabilities. The purchase accounting accretion is recognized in net interest income over the weighted-average life of the financial instruments using the constant effective yield method. Accretion for a single purchased impaired loan not included within a pool of loans includes any cash recoveries on that loan received in excess of the recorded investment.

Purchased impaired loans - Acquired loans (or pools of loans) determined to be credit impaired under FASB ASC 310-30 (AICPA SOP 03-3). Loans (or pools of 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 will not be collected.

Recorded investment (purchased impaired loans) - The initial investment of a purchased impaired loan plus interest accretion and less any cash payments and writedowns to date. The recorded investment excludes any valuation allowance which is included in our allowance for loan and lease losses.

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.

Residential development loans - Project-specific loans to commercial customers for the construction or development of residential real estate including land, single family homes, condominiums and other residential properties.

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 attributable to common shareholders divided by average common shareholders’ equity.

Risk-weighted assets - 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 or liability 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.

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.

Total equity - Total shareholders’ equity plus noncontrolling interests.

Transitional Basel III common equity – Common equity calculated under Basel III using phased in definitions and deductions applicable to PNC during the applicable presentation period.

Troubled debt restructuring (TDR) - A loan whose terms have been restructured in a manner that grants a concession to a borrower experiencing financial difficulties.

Watchlist - A list of criticized loans, credit exposure or other assets compiled for internal monitoring purposes. We define criticized exposure for this purpose as exposure with an internal risk rating of other assets especially mentioned, substandard, doubtful or loss.

THE PNC FINANCIAL SERVICES GROUP, INC. Page 24

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.

EX-99.2

Exhibit 99.2