The PNC Financial Services Group, Inc. (PNC) 8-K Results of Operations and Financial Condition

Exhibit 99.1

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2019

(Unaudited)

THE PNC FINANCIAL SERVICES GROUP, INC.

FINANCIAL SUPPLEMENT

THIRD QUARTER 2019

(UNAUDITED)

Consolidated Results:	Page
Income Statement	1
Balance Sheet	2
Average Balance Sheet	3
Details of Net Interest Margin	4
Per Share Related Information	5
Loans	5
Allowance for Loan and Lease Losses	6
Nonperforming Assets	7-8
Accruing Loans Past Due	9
Business Segment Results:
Descriptions	10
Period End Employees	10
Income and Revenue	11
Retail Banking	12-13
Corporate & Institutional Banking	14
Asset Management Group	15
Glossary of Terms	16-18

The information contained in this Financial Supplement is preliminary, unaudited and based on data available on October 16, 2019. 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, including residential mortgage, corporate and institutional banking and asset management, providing many of its products and services nationally. PNC's retail branch network is located in markets across the Mid-Atlantic, Midwest and Southeast. PNC also has strategic international offices in four countries outside the U.S.

THE PNC FINANCIAL SERVICES GROUP, INC.
Cross Reference Index to Third Quarter 2019 Financial Supplement (Unaudited)
Financial Supplement Table Reference
Table	Description	Page
1	Consolidated Income Statement	1
2	Consolidated Balance Sheet	2
3	Average Consolidated Balance Sheet	3
4	Details of Net Interest Margin	4
5	Per Share Related Information	5
6	Details of Loans	5
7	Change in Allowance for Loan and Lease Losses	6
8	Nonperforming Assets by Type	7
9	Change in Nonperforming Assets	8
10	Largest Individual Nonperforming Assets	8
11	Accruing Loans Past Due 30 to 59 Days	9
12	Accruing Loans Past Due 60 to 89 Days	9
13	Accruing Loans Past Due 90 Days or More	9
14	Period End Employees	10
15	Summary of Business Segment Income and Revenue	11
16	Retail Banking	12-13
17	Corporate & Institutional Banking	14
18	Asset Management Group	15

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 1 

Table 1: Consolidated Income Statement (Unaudited)

	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
In millions, except per share data	2019			2019			2019			2018			2018			2019			2018
Interest Income
Loans	$	2,678		$	2,672		$	2,602		$	2,555		$	2,452		$	7,952		$	7,025
Investment securities	617			629			620			608			584			1,866			1,653
Other	208			196			206			196			187			610			545
Total interest income	3,503			3,497			3,428			3,359			3,223			10,428			9,223
Interest Expense
Deposits	531			515			472			419			336			1,518			810
Borrowed funds	468			484			481			459			421			1,433			1,173
Total interest expense	999			999			953			878			757			2,951			1,983
Net interest income	2,504			2,498			2,475			2,481			2,466			7,477			7,240
Noninterest Income
Asset management	464			445			437			428			486			1,346			1,397
Consumer services	402			392			371			387			377			1,165			1,115
Corporate services	469			484			462			468			465			1,415			1,381
Residential mortgage	134			82			65			59			76			281			257
Service charges on deposits	178			171			168			192			186			517			522
Other (a)	342			367			308			325			301			1,017			880
Total noninterest income	1,989			1,941			1,811			1,859			1,891			5,741			5,552
Total revenue	4,493			4,439			4,286			4,340			4,357			13,218			12,792
Provision For Credit Losses	183			180			189			148			88			552			260
Noninterest Expense
Personnel	1,400			1,365			1,414			1,348			1,413			4,179			4,123
Occupancy	206			212			215			202			195			633			616
Equipment	291			298			273			285			264			862			818
Marketing	76			83			65			84			71			224			201
Other	650			653			611			658			665			1,914			1,961
Total noninterest expense	2,623			2,611			2,578			2,577			2,608			7,812			7,719
Income before income taxes and noncontrolling interests	1,687			1,648			1,519			1,615			1,661			4,854			4,813
Income taxes	295			274			248			264			261			817			818
Net income	1,392			1,374			1,271			1,351			1,400			4,037			3,995
Less: Net income attributable to noncontrolling interests	13			12			10			14			11			35			31
Preferred stock dividends (b)	63			55			63			55			63			181			181
Preferred stock discount accretion and redemptions	1			1			1			1			1			3			3
Net income attributable to common shareholders	$	1,315		$	1,306		$	1,197		$	1,281		$	1,325		$	3,818		$	3,780
Earnings Per Common Share
Basic	$	2.95		$	2.89		$	2.62		$	2.77		$	2.84		$	8.45		$	8.03
Diluted	$	2.94		$	2.88		$	2.61		$	2.75		$	2.82		$	8.42		$	7.96
Average Common Shares Outstanding
Basic	444			451			455			461			465			450			469
Diluted	445			452			456			463			467			451			472
Efficiency	58		%	59		%	60		%	59		%	60		%	59		%	60		%
Noninterest income to total revenue	44		%	44		%	42		%	43		%	43		%	43		%	43		%
Effective tax rate (c)	17.5		%	16.6		%	16.3		%	16.3		%	15.7		%	16.8		%	17.0		%

(a) Includes net gains (losses) on sales of securities of $3 million, $20 million, $13 million, $5 million, and $(1) million for the quarters ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively, and $36 million and $(5) million for the nine months ended September 30, 2019 and September 30, 2018, 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)

	September 30			June 30			March 31			December 31			September 30
In millions, except par value	2019			2019			2019			2018			2018
Assets
Cash and due from banks	$	5,671		$	5,416		$	5,062		$	5,608		$	5,248
Interest-earning deposits with banks (a)	19,036			18,362			15,261			10,893			19,800
Loans held for sale (b)	1,872			1,144			686			994			1,108
Investment securities – available for sale	69,057			69,355			65,051			63,389			61,211
Investment securities – held to maturity	18,826			18,948			18,818			19,312			19,593
Loans (b)	237,377			237,215			232,293			226,245			223,053
Allowance for loan and lease losses	(2,738		)	(2,721		)	(2,692		)	(2,629		)	(2,584		)
Net loans	234,639			234,494			229,601			223,616			220,469
Equity investments (c)	13,325			13,001			12,567			12,894			12,446
Mortgage servicing rights	1,483			1,627			1,812			1,983			2,136
Goodwill	9,233			9,221			9,218			9,218			9,218
Other (b)	35,774			34,193			34,761			34,408			28,851
Total assets	$	408,916		$	405,761		$	392,837		$	382,315		$	380,080
Liabilities
Deposits
Noninterest-bearing	$	74,077		$	69,867		$	71,606		$	73,960		$	74,736
Interest-bearing	211,506			203,393			199,615			193,879			190,148
Total deposits	285,583			273,260			271,221			267,839			264,884
Borrowed funds
Federal Home Loan Bank borrowings	21,901			29,376			20,501			21,501			20,036
Bank notes and senior debt	27,148			27,694			25,598			25,018			26,676
Subordinated debt	5,473			5,406			5,977			5,895			5,764
Other (b)	6,832			6,549			7,784			5,005			5,479
Total borrowed funds	61,354			69,025			59,860			57,419			57,955
Allowance for unfunded loan commitments and letters of credit	304			291			279			285			288
Accrued expenses and other liabilities	12,220			13,804			12,902			9,002			9,851
Total liabilities	359,461			356,380			344,262			334,545			332,978
Equity
Preferred stock (d)
Common stock - $5 par value
Authorized 800 shares, issued 542 shares	2,711			2,711			2,711			2,711			2,710
Capital surplus	16,297			16,248			16,173			16,277			16,299
Retained earnings	41,413			40,616			39,742			38,919			38,080
Accumulated other comprehensive income (loss)	837			631			(5		)	(725		)	(1,260		)
Common stock held in treasury at cost:103, 95, 90, 85 and 80 shares	(11,838		)	(10,866		)	(10,085		)	(9,454		)	(8,771		)
Total shareholders’ equity	49,420			49,340			48,536			47,728			47,058
Noncontrolling interests	35			41			39			42			44
Total equity	49,455			49,381			48,575			47,770			47,102
Total liabilities and equity	$	408,916		$	405,761		$	392,837		$	382,315		$	380,080

(a) Amounts include balances held with the Federal Reserve Bank of Cleveland of $18.8 billion, $18.1 billion, $15.0 billion, $10.5 billion and $19.6 billion as of September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively.

(b) Amounts include assets and liabilities for which PNC has elected the fair value option. Our second quarter 2019 Form 10-Q included, and our third quarter 2019 Form 10-Q 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: Average Consolidated Balance Sheet (Unaudited) (a)
	Three months ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
In millions	2019		2019		2019		2018		2018		2019		2018
Assets
Interest-earning assets:
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	$	32,926	$	30,169	$	29,002	$	28,375	$	28,241	$	30,714	$	26,746
Non-agency	1,716		1,801		1,890		1,993		2,128		1,802		2,265
Commercial mortgage-backed	5,728		5,545		5,368		4,830		4,366		5,549		4,449
Asset-backed	5,208		5,395		5,136		5,186		5,459		5,247		5,260
U.S. Treasury and government agencies	17,573		18,815		18,240		18,443		16,757		18,207		15,603
Other	3,053		3,237		3,671		3,920		3,996		3,316		4,113
Total securities available for sale	66,204		64,962		63,307		62,747		60,947		64,835		58,436
Securities held to maturity
Residential mortgage-backed	15,768		15,350		15,627		15,941		16,292		15,582		15,578
Commercial mortgage-backed	544		570		600		648		715		571		807
Asset-backed	79		172		177		185		189		143		194
U.S. Treasury and government agencies	769		765		760		756		752		765		747
Other	1,802		1,822		1,847		1,856		1,871		1,823		1,894
Total securities held to maturity	18,962		18,679		19,011		19,386		19,819		18,884		19,220
Total investment securities	85,166		83,641		82,318		82,133		80,766		83,719		77,656
Loans
Commercial	125,356		124,441		119,345		116,596		113,883		123,069		112,907
Commercial real estate	28,855		28,423		28,147		28,382		28,860		28,477		28,883
Equipment lease financing	7,272		7,283		7,263		7,216		7,202		7,273		7,512
Consumer	55,702		55,202		54,996		55,331		55,449		55,303		55,474
Residential real estate	20,497		19,496		18,794		18,405		17,948		19,602		17,609
Total loans	237,682		234,845		228,545		225,930		223,342		233,724		222,385
Interest-earning deposits with banks (b)	15,632		13,469		15,017		16,691		19,151		14,708		21,921
Other interest-earning assets	14,094		13,145		11,068		10,431		7,114		12,780		7,305
Total interest-earning assets	352,574		345,100		336,948		335,185		330,373		344,931		329,267
Noninterest-earning assets	54,135		51,862		48,950		47,906		47,504		51,668		47,332
Total assets	$	406,709	$	396,962	$	385,898	$	383,091	$	377,877	$	396,599	$	376,599
Liabilities and Equity
Interest-bearing liabilities:
Interest-bearing deposits
Money market	$	56,271	$	54,814	$	54,702	$	55,228	$	55,507	$	55,268	$	56,732
Demand	65,444		64,431		63,480		62,207		60,138		64,459		60,058
Savings	64,054		61,949		58,821		55,065		52,919		61,627		50,845
Time deposits	21,173		20,040		18,813		18,743		17,756		20,017		17,081
Total interest-bearing deposits	206,942		201,234		195,816		191,243		186,320		201,371		184,716
Borrowed funds
Federal Home Loan Bank borrowings	25,883		22,681		21,491		20,683		21,516		23,368		21,067
Bank notes and senior debt	27,409		26,865		25,418		26,380		27,301		26,571		28,352
Subordinated debt	5,189		5,526		5,883		5,874		5,253		5,530		5,096
Other	5,452		7,263		6,991		5,847		5,768		6,564		4,966
Total borrowed funds	63,933		62,335		59,783		58,784		59,838		62,033		59,481
Total interest-bearing liabilities	270,875		263,569		255,599		250,027		246,158		263,404		244,197
Noninterest-bearing liabilities and equity:
Noninterest-bearing deposits	72,149		71,648		71,402		75,228		76,155		71,736		76,666
Accrued expenses and other liabilities	14,529		13,122		11,242		10,833		8,853		12,975		8,971
Equity	49,156		48,623		47,655		47,003		46,711		48,484		46,765
Total liabilities and equity	$	406,709	$	396,962	$	385,898	$	383,091	$	377,877	$	396,599	$	376,599

(a) Calculated using average daily balances.

(b) Amounts include average balances held with the Federal Reserve Bank of Cleveland of $15.3 billion, $13.2 billion, $14.7 billion, $16.4 billion and $18.8 billion for the three months ended September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018, respectively, and $14.4 billion and $21.6 billion for the nine months ended September 30, 2019 and September 30 2018, respectfully.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 4 

Table 4: Details of Net Interest Margin (Unaudited)
	Three months ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
	2019		2019		2019		2018		2018		2019		2018
Average yields/rates (a)
Yield on interest-earning assets
Investment securities
Securities available for sale
Residential mortgage-backed
Agency	2.70	%	2.93	%	2.94	%	2.86	%	2.76	%	2.85	%	2.68	%
Non-agency	8.89	%	7.99	%	7.31	%	7.08	%	7.18	%	8.04	%	6.54	%
Commercial mortgage-backed	2.97	%	3.06	%	3.13	%	2.99	%	2.72	%	3.05	%	2.75	%
Asset-backed	3.31	%	3.34	%	3.35	%	3.24	%	3.37	%	3.33	%	3.12	%
U.S. Treasury and government agencies	2.44	%	2.48	%	2.49	%	2.41	%	2.25	%	2.47	%	2.20	%
Other	3.41	%	3.33	%	3.34	%	3.37	%	3.28	%	3.36	%	3.50	%
Total securities available for sale	2.90	%	3.01	%	3.01	%	2.93	%	2.86	%	2.97	%	2.80	%
Securities held to maturity
Residential mortgage-backed	2.78	%	2.93	%	3.01	%	2.98	%	2.92	%	2.91	%	2.88	%
Commercial mortgage-backed	3.68	%	3.57	%	3.53	%	3.68	%	3.71	%	3.59	%	3.73	%
Asset-backed	5.48	%	3.92	%	3.83	%	3.76	%	3.65	%	4.18	%	3.34	%
U.S. Treasury and government agencies	2.86	%	2.84	%	2.81	%	2.86	%	2.85	%	2.84	%	2.83	%
Other	4.40	%	4.44	%	4.40	%	4.41	%	4.42	%	4.41	%	4.42	%
Total securities held to maturity	2.98	%	3.10	%	3.16	%	3.14	%	3.10	%	3.08	%	3.07	%
Total investment securities	2.91	%	3.03	%	3.05	%	2.98	%	2.92	%	3.00	%	2.87	%
Loans
Commercial	4.06	%	4.22	%	4.33	%	4.17	%	4.06	%	4.20	%	3.93	%
Commercial real estate	4.40	%	4.43	%	4.37	%	4.42	%	4.10	%	4.40	%	3.98	%
Equipment lease financing	3.82	%	4.06	%	3.93	%	3.77	%	3.78	%	3.94	%	3.54	%
Consumer	5.61	%	5.56	%	5.54	%	5.32	%	5.17	%	5.57	%	5.00	%
Residential real estate	4.21	%	4.27	%	4.29	%	4.41	%	4.45	%	4.25	%	4.40	%
Total loans	4.47	%	4.56	%	4.61	%	4.49	%	4.36	%	4.54	%	4.23	%
Interest-earning deposits with banks	2.17	%	2.38	%	2.43	%	2.25	%	1.97	%	2.32	%	1.74	%
Other interest-earning assets	3.49	%	3.55	%	4.14	%	3.93	%	5.19	%	3.70	%	4.74	%
Total yield on interest-earning assets	3.95	%	4.06	%	4.11	%	3.99	%	3.89	%	4.04	%	3.75	%
Rate on interest-bearing liabilities
Interest-bearing deposits
Money market	1.14	%	1.17	%	1.15	%	.99	%	.80	%	1.15	%	.66	%
Demand	.58	%	.55	%	.52	%	.46	%	.32	%	.55	%	.26	%
Savings	1.14	%	1.19	%	1.13	%	1.04	%	.92	%	1.15	%	.75	%
Time deposits	1.66	%	1.67	%	1.55	%	1.38	%	1.18	%	1.63	%	1.02	%
Total interest-bearing deposits	1.02	%	1.03	%	.98	%	.87	%	.71	%	1.01	%	.59	%
Borrowed funds
Federal Home Loan Bank borrowings	2.48	%	2.69	%	2.77	%	2.57	%	2.42	%	2.63	%	2.14	%
Bank notes and senior debt	3.21	%	3.36	%	3.50	%	3.31	%	2.92	%	3.35	%	2.76	%
Subordinated debt	3.53	%	4.17	%	4.50	%	4.44	%	4.10	%	4.09	%	4.16	%
Other	2.43	%	2.44	%	2.44	%	2.36	%	2.11	%	2.44	%	2.04	%
Total borrowed funds	2.87	%	3.08	%	3.21	%	3.07	%	2.76	%	3.05	%	2.60	%
Total rate on interest-bearing liabilities	1.45	%	1.51	%	1.50	%	1.38	%	1.21	%	1.48	%	1.08	%
Interest rate spread	2.50	%	2.55	%	2.61	%	2.61	%	2.68	%	2.56	%	2.67	%
Benefit from use of noninterest bearing sources (b)	.34		.36		.37		.35		.31		.35		.28
Net interest margin	2.84	%	2.91	%	2.98	%	2.96	%	2.99	%	2.91	%	2.95	%

(a) Yields and rates are calculated using the applicable annualized interest income or interest expense divided by the applicable average earning assets or interest-bearing liabilities. Net interest margin is the total yield on interest-earning assets minus the total rate on interest-bearing liabilities and includes the benefit from use of noninterest-bearing sources. To provide more meaningful comparisons of net interest yields for all earning assets, as well as net interest margins, we use interest income on a taxable-equivalent basis in calculating net interest 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 taxable investments. 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 September 30, 2019, June 30, 2019, March 31, 2019, December 31, 2018 and September 30, 2018 were $25 million, $27 million, $27 million, $28 million and $29 million, respectively. The taxable-equivalent adjustments to net interest income for the nine months ended September 30, 2019 and September 30, 2018 were $79 million and $87 million, respectively.

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

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 5 

Table 5: Per Share Related Information (Unaudited)
	Three months ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
In millions, except per share data	2019		2019		2019		2018		2018		2019		2018
Basic
Net income	$	1,392	$	1,374	$	1,271	$	1,351	$	1,400	$	4,037	$	3,995
Less:
Net income attributable to noncontrolling interests	13		12		10		14		11		35		31
Preferred stock dividends (a)	63		55		63		55		63		181		181
Preferred stock discount accretion and redemptions	1		1		1		1		1		3		3
Net income attributable to common shareholders	1,315		1,306		1,197		1,281		1,325		3,818		3,780
Less: Dividends and undistributed earnings allocated     to nonvested restricted shares	6		4		5		5		6		15		16
Net income attributable to basic common shares	$	1,309	$	1,302	$	1,192	$	1,276	$	1,319	$	3,803	$	3,764
Basic weighted-average common shares outstanding	444		451		455		461		465		450		469
Basic earnings per common share	$	2.95	$	2.89	$	2.62	$	2.77	$	2.84	$	8.45	$	8.03
Diluted
Net income attributable to basic common shares	$	1,309	$	1,302	$	1,192	$	1,276	$	1,319	$	3,803	$	3,764
Less: Impact of BlackRock earnings per share dilution	2		2		3		2		2		7		7
Net income attributable to diluted common shares	$	1,307	$	1,300	$	1,189	$	1,274	$	1,317	$	3,796	$	3,757
Basic weighted-average common shares outstanding	444		451		455		461		465		450		469
Dilutive potential common shares	1		1		1		2		2		1		3
Diluted weighted-average common shares outstanding	445		452		456		463		467		451		472
Diluted earnings per common share	$	2.94	$	2.88	$	2.61	$	2.75	$	2.82	$	8.42	$	7.96

(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.

Table 6: Details of Loans (Unaudited)

	September 30		June 30		March 31		December 31		September 30
In millions	2019		2019		2019		2018		2018
Commercial lending
Commercial
Manufacturing	$	21,846	$	22,191	$	22,575	$	21,207	$	21,272
Retail/wholesale trade	21,761		22,280		21,655		20,850		19,689
Service providers	16,189		15,387		15,266		14,869		14,386
Real estate related (a)	12,294		12,264		12,287		12,312		12,539
Financial services	10,437		11,916		10,475		9,500		9,441
Health care	8,137		8,594		8,731		8,886		9,217
Transportation and warehousing	7,216		6,588		6,744		5,781		5,715
Other industries	26,134		26,404		25,260		23,429		21,412
Total commercial	124,014		125,624		122,993		116,834		113,671
Commercial real estate	28,884		28,570		28,101		28,140		28,563
Equipment lease financing	7,290		7,409		7,348		7,308		7,214
Total commercial lending	160,188		161,603		158,442		152,282		149,448
Consumer lending
Home equity	24,971		25,132		25,500		26,123		26,628
Residential real estate	21,082		20,092		19,107		18,657		18,203
Automobile	16,004		15,612		14,707		14,419		14,309
Credit card	6,815		6,511		6,267		6,357		5,979
Education	3,461		3,555		3,707		3,822		3,954
Other consumer	4,856		4,710		4,563		4,585		4,532
Total consumer lending	77,189		75,612		73,851		73,963		73,605
Total loans	$	237,377	$	237,215	$	232,293	$	226,245	$	223,053

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

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 6 

Allowance for Loan and Lease Losses (Unaudited)

Table 7: Change in Allowance for Loan and Lease Losses

	September 30			June 30			March 31			December 31			September 30
Three months ended - dollars in millions	2019			2019			2019			2018			2018
Beginning balance	$	2,721		$	2,692		$	2,629		$	2,584		$	2,581
Gross charge-offs:
Commercial	(41		)	(50		)	(25		)	(30		)	(26		)
Commercial real estate	(11		)	(2		)	(3		)
Equipment lease financing	(2		)	(1		)	(3		)	(2		)	(2		)
Home equity	(11		)	(18		)	(23		)	(25		)	(24		)
Residential real estate	(1		)	(2		)	(2		)	3			(3		)
Automobile	(71		)	(54		)	(58		)	(54		)	(40		)
Credit card	(61		)	(65		)	(67		)	(56		)	(52		)
Education	(7		)	(7		)	(6		)	(7		)	(7		)
Other consumer	(36		)	(28		)	(28		)	(29		)	(24		)
Total gross charge-offs	(241		)	(227		)	(215		)	(200		)	(178		)
Recoveries:
Commercial	14			17			14			17			18
Commercial real estate	3			2			3			6			4
Equipment lease financing	2			2			2			2			1
Home equity	20			18			18			31			23
Residential real estate	4			4			3			3			8
Automobile	30			29			26			21			21
Credit card	7			7			7			6			6
Education	2			2			2			2			2
Other consumer	4			4			4			5			4
Total recoveries	86			85			79			93			87
Net (charge-offs) / recoveries:
Commercial	(27		)	(33		)	(11		)	(13		)	(8		)
Commercial real estate	(8		)							6			4
Equipment lease financing				1			(1		)				(1		)
Home equity	9						(5		)	6			(1		)
Residential real estate	3			2			1			6			5
Automobile	(41		)	(25		)	(32		)	(33		)	(19		)
Credit card	(54		)	(58		)	(60		)	(50		)	(46		)
Education	(5		)	(5		)	(4		)	(5		)	(5		)
Other consumer	(32		)	(24		)	(24		)	(24		)	(20		)
Total net (charge-offs)	(155		)	(142		)	(136		)	(107		)	(91		)
Provision for credit losses	183			180			189			148			88
Net (increase) / decrease in allowance for unfunded loan commitments and letters of credit	(13		)	(12		)	6			3			1
Other	2			3			4			1			5
Ending balance	$	2,738		$	2,721		$	2,692		$	2,629		$	2,584
Supplemental Information
Net charge-offs to average loans (annualized)	.26		%	.24		%	.24		%	.19		%	.16		%
Allowance for loan and lease losses to total loans	1.15		%	1.15		%	1.16		%	1.16		%	1.16		%
Commercial lending net charge-offs	$	(35	)	$	(32	)	$	(12	)	$	(7	)	$	(5	)
Consumer lending net charge-offs	(120		)	(110		)	(124		)	(100		)	(86		)
Total net charge-offs	$	(155	)	$	(142	)	$	(136	)	$	(107	)	$	(91	)
Net charge-offs to average loans (annualized)
Commercial lending	.09		%	.08		%	.03		%	.02		%	.01		%
Consumer lending	.62		%	.59		%	.68		%	.54		%	.46		%

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 7 

Details of Nonperforming Assets (Unaudited)

Table 8: Nonperforming Assets by Type

	September 30			June 30			March 31			December 31			September 30
Dollars in millions	2019			2019			2019			2018			2018
Nonperforming loans, including TDRs
Commercial lending
Commercial
Retail/wholesale trade	$	61		$	42		$	35		$	38		$	47
Manufacturing	109			88			88			54			43
Service providers	55			53			52			50			53
Real estate related (a)	33			19			16			17			18
Health care	17			15			19			20			14
Transportation and warehousing	13			21			8			8			7
Other industries	203			203			151			159			138
Total commercial	491			441			369			346			320
Commercial real estate	75			93			54			75			68
Equipment lease financing	10			6			7			11			5
Total commercial lending	576			540			430			432			393
Consumer lending (b)
Home equity	685			712			763			797			828
Residential real estate	325			339			339			350			363
Automobile	128			118			107			100			95
Credit card	9			8			7			7			6
Other consumer	5			7			7			8			9
Total consumer lending	1,152			1,184			1,223			1,262			1,301
Total nonperforming loans (c)	1,728			1,724			1,653			1,694			1,694
OREO and foreclosed assets	119			126			132			114			131
Total nonperforming assets	$	1,847		$	1,850		$	1,785		$	1,808		$	1,825
Nonperforming loans to total loans	.73		%	.73		%	.71		%	.75		%	.76		%
Nonperforming assets to total loans, OREO and foreclosed assets	.78		%	.78		%	.77		%	.80		%	.82		%
Nonperforming assets to total assets	.45		%	.46		%	.45		%	.47		%	.48		%
Allowance for loan and lease losses to nonperforming loans	158		%	158		%	163		%	155		%	153		%

(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.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 8 

Details of Nonperforming Assets (Unaudited) (Continued)

Table 9: Change in Nonperforming Assets

	July 1, 2019			April 1, 2019			January 1, 2019			October 1, 2018			July 1, 2018 -
In millions	September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018			September 30, 2018
Beginning balance	$	1,850		$	1,785		$	1,808		$	1,825		$	1,854
New nonperforming assets	290			408			287			325			260
Charge-offs and valuation adjustments	(112		)	(170		)	(164		)	(148		)	(126		)
Principal activity, including paydowns and payoffs	(122		)	(101		)	(92		)	(97		)	(99		)
Asset sales and transfers to loans held for sale	(34		)	(27		)	(13		)	(38		)	(38		)
Returned to performing status	(25		)	(45		)	(41		)	(59		)	(26		)
Ending balance	$	1,847		$	1,850		$	1,785		$	1,808		$	1,825

Table 10: Largest Individual Nonperforming Assets (a)

September 30, 2019 - Dollars in millions
Ranking	Outstandings		Industry
1	$	33	Information
2	32		Manufacturing
3	29		Retail Trade
4	29		Real Estate and Rental and Leasing
5	29		Mining, Quarrying, and Oil and Gas Extraction
6	25		Real Estate and Rental and Leasing
7	21		Mining, Quarrying, and Oil and Gas Extraction
8	15		Construction
9	15		Service Providers
10	15		Manufacturing
Total	$	243
As a percent of total nonperforming assets			13%

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

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 9 

Accruing Loans Past Due (Unaudited)

Table 11: Accruing Loans Past Due 30 to 59 Days (a)

	Amount										Percent of Total Outstandings
	Sept. 30		Jun. 30		Mar. 31		Dec. 31		Sept. 30		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Sept. 30
Dollars in millions	2019		2019		2019		2018		2018		2019		2019		2019		2018		2018
Commercial	$	82	$	105	$	80	$	82	$	60	.07	%	.08	%	.07	%	.07	%	.05	%
Commercial real estate	3		9		43		6		8		.01	%	.03	%	.15	%	.02	%	.03	%
Equipment lease financing	6		7		84		56		29		.08	%	.09	%	1.14	%	.77	%	.40	%
Home equity	53		56		59		66		77		.21	%	.22	%	.23	%	.25	%	.29	%
Residential real estate
Non government insured	76		80		91		75		70		.36	%	.40	%	.48	%	.40	%	.38	%
Government insured	53		54		62		60		60		.25	%	.27	%	.32	%	.32	%	.33	%
Automobile	145		119		97		113		104		.91	%	.76	%	.66	%	.78	%	.73	%
Credit card	56		47		45		46		45		.82	%	.72	%	.72	%	.72	%	.75	%
Education
Non government insured	8		7		9		10		10		.23	%	.20	%	.24	%	.26	%	.25	%
Government insured	48		53		54		59		71		1.39	%	1.49	%	1.46	%	1.54	%	1.80	%
Other consumer	17		13		10		12		17		.35	%	.28	%	.22	%	.26	%	.38	%
Total	$	547	$	550	$	634	$	585	$	551	.23	%	.23	%	.27	%	.26	%	.25	%

Table 12: Accruing Loans Past Due 60 to 89 Days (a)

	Amount										Percent of Total Outstandings
	Sept. 30		Jun. 30		Mar. 31		Dec. 31		Sept. 30		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Sept. 30
Dollars in millions	2019		2019		2019		2018		2018		2019		2019		2019		2018		2018
Commercial	$	49	$	33	$	25	$	54	$	35	.04	%	.03	%	.02	%	.05	%	.03	%
Commercial real estate	3		1		1		3		3		.01	%	.00	%	.00	%	.01	%	.01	%
Equipment lease financing	4		3		5		12		16		.05	%	.04	%	.07	%	.16	%	.22	%
Home equity	24		20		21		25		30		.10	%	.08	%	.08	%	.10	%	.11	%
Residential real estate
Non government insured	20		20		13		17		16		.09	%	.10	%	.07	%	.09	%	.09	%
Government insured	57		55		49		56		51		.27	%	.27	%	.26	%	.30	%	.28	%
Automobile	36		29		26		29		25		.22	%	.19	%	.18	%	.20	%	.17	%
Credit card	33		29		28		29		28		.48	%	.45	%	.45	%	.46	%	.47	%
Education
Non government insured	5		4		5		4		6		.14	%	.11	%	.13	%	.10	%	.15	%
Government insured	30		32		33		37		42		.87	%	.90	%	.89	%	.97	%	1.06	%
Other consumer	8		9		6		5		6		.16	%	.19	%	.13	%	.11	%	.13	%
Total	$	269	$	235	$	212	$	271	$	258	.11	%	.10	%	.09	%	.12	%	.12	%

Table 13: Accruing Loans Past Due 90 Days or More (a)

	Amount										Percent of Total Outstandings
	Sept. 30		Jun. 30		Mar. 31		Dec. 31		Sept. 30		Sept. 30		Jun. 30		Mar. 31		Dec. 31		Sept. 30
Dollars in millions	2019		2019		2019		2018		2018		2019		2019		2019		2018		2018
Commercial	$	64	$	59	$	71	$	52	$	67	.05	%	.05	%	.06	%	.04	%	.06	%
Residential real estate
Non government insured	15		13		18		19		15		.07	%	.06	%	.09	%	.10	%	.08	%
Government insured	287		293		305		344		342		1.36	%	1.46	%	1.60	%	1.84	%	1.88	%
Automobile	11		8		10		12		8		.07	%	.05	%	.07	%	.08	%	.06	%
Credit card	57		48		53		53		48		.84	%	.74	%	.85	%	.83	%	.80	%
Education
Non government insured	3		3		3		3		3		.09	%	.08	%	.08	%	.08	%	.08	%
Government insured	87		92		123		138		129		2.51	%	2.59	%	3.32	%	3.61	%	3.26	%
Other consumer	8		8		7		8		7		.16	%	.17	%	.15	%	.17	%	.15	%
Total	$	532	$	524	$	590	$	629	$	619	.22	%	.22	%	.25	%	.28	%	.28	%

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

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 10 

Business Segment Descriptions (Unaudited)

Retail Banking provides deposit, lending, brokerage, insurance services, investment management and cash management products and services to consumer and small business customers. Our customers are serviced through our branch network, ATMs, call centers, online banking and mobile channels. The branch network is located in markets across the Mid-Atlantic, Midwest and Southeast. In 2018, Retail Banking launched its national expansion strategy designed to grow customers with digitally-led banking and an ultra-thin branch network in markets outside of our existing retail branch network. Deposit products include checking, savings and money market accounts and certificates of deposit. Lending products include residential mortgages, home equity loans and lines of credit, auto loans, credit cards, education loans and personal and small business loans and lines of credit. The residential mortgage loans are directly originated within our branch network and nationwide, and are typically underwritten to government agency and/or third-party standards, and either sold, servicing retained, or held on our balance sheet. Brokerage, investment management and cash management products and services include managed, education, retirement and trust accounts.

Corporate & Institutional Bankingprovides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, and 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 underwriting, 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 provided nationally.

Asset Management Group provides personal wealth management for high net worth and ultra high net worth clients and institutional asset management. The Asset Management group is comprised of three distinct operating units:

• Wealth management provides products and services to individuals and their families including investment and retirement planning, customized investment management, private banking, and trust management and administration for individuals and their families.

• Our Hawthorn unit provides multi-generational family planning including estate, financial, tax planning, fiduciary, investment management and consulting, private banking, personal administrative services, asset custody and customized performance reporting to ultra high net worth clients.

• Institutional asset management provides outsourced chief investment officer, custody, private real estate, cash and fixed income client solutions, and fiduciary retirement advisory services to institutional clients including corporations, healthcare systems, insurance companies, unions, municipalities and non-profits.

BlackRock, in which we hold an equity investment, is a leading publicly-traded investment management firm providing a broad range of investment and technology services to institutional and retail clients worldwide. Using a diverse platform of alpha-seeking active, index and cash management investment strategies across asset classes, BlackRock tailors 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 technology services, including an investment and risk management technology platform, as well as advisory services and solutions to a broad base of institutional and wealth management clients. 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 September 30, 2019, our economic interest in BlackRock was 22%.

Table 14: Period End Employees

	September 30	June 30	March 31	December 31	September 30
	2019	2019	2019	2018	2018
Full-time employees
Retail Banking	28,279	28,671	28,992	29,180	29,296
Other full-time employees	21,701	21,571	21,652	21,748	21,768
Total full-time employees	49,980	50,242	50,644	50,928	51,064
Part-time employees
Retail Banking	1,823	2,037	1,887	1,974	2,071
Other part-time employees	153	518	180	161	187
Total part-time employees	1,976	2,555	2,067	2,135	2,258
Total	51,956	52,797	52,711	53,063	53,322

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 11 

Table 15: Summary of Business Segment Income and Revenue (Unaudited) (a)

	Three months ended										Nine months ended
	September 30		June 30		March 31		December 31		September 30		September 30		September 30
In millions	2019		2019		2019		2018		2018		2019		2018
Income
Retail Banking	$	347	$	325	$	264	$	313	$	228	$	936	$	751
Corporate & Institutional Banking	645		602		552		651		642		1,799		1,857
Asset Management Group	46		80		45		42		55		171		160
Other, including BlackRock (b)	354		367		410		345		475		1,131		1,227
Net income	$	1,392	$	1,374	$	1,271	$	1,351	$	1,400	$	4,037	$	3,995
Revenue
Retail Banking	$	2,137	$	2,033	$	1,944	$	2,015	$	1,927	$	6,114	$	5,735
Corporate & Institutional Banking	1,584		1,578		1,474		1,562		1,517		4,636		4,481
Asset Management Group	286		354		287		286		299		927		893
Other, including BlackRock (b)	486		474		581		477		614		1,541		1,683
Total revenue	$	4,493	$	4,439	$	4,286	$	4,340	$	4,357	$	13,218	$	12,792

(a) Our business information is presented based on our internal management reporting practices. 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) 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. We provide additional information on these activities in our Form 10-K and Form 10-Q filings with the SEC.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 12 

Table 16: Retail Banking (Unaudited) (a)

	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions	2019			2019			2019			2018			2018			2019			2018
Income Statement
Net interest income	$	1,393		$	1,376		$	1,349		$	1,319		$	1,305		$	4,118		$	3,800
Noninterest income	744			657			595			696			622			1,996			1,935
Total revenue	2,137			2,033			1,944			2,015			1,927			6,114			5,735
Provision for credit losses	147			81			128			119			113			356			254
Noninterest expense	1,536			1,527			1,468			1,487			1,514			4,531			4,491
Pretax earnings	454			425			348			409			300			1,227			990
Income taxes	107			100			84			96			72			291			239
Earnings	$	347		$	325		$	264		$	313		$	228		$	936		$	751
Average Balance Sheet
Loans held for sale	$	760		$	554		$	441		$	559		$	704		$	586		$	662
Loans
Consumer
Home equity	$	22,434		$	22,620		$	22,990		$	23,407		$	23,777		$	22,679		$	24,188
Automobile	15,761			15,222			14,608			14,375			14,169			15,201			13,643
Education	3,538			3,665			3,816			3,918			4,039			3,672			4,208
Credit cards	6,624			6,376			6,204			6,112			5,889			6,403			5,746
Other	2,309			2,179			2,068			1,985			1,857			2,187			1,794
Total consumer	50,666			50,062			49,686			49,797			49,731			50,142			49,579
Commercial and commercial real estate	10,379			10,481			10,461			10,339			10,209			10,440			10,397
Residential mortgage	16,630			15,737			15,034			14,637			14,153			15,806			13,767
Total loans	$	77,675		$	76,280		$	75,181		$	74,773		$	74,093		$	76,388		$	73,743
Total assets	$	93,222		$	92,350		$	91,255		$	91,164		$	89,963		$	92,282		$	89,259
Deposits
Noninterest-bearing demand	$	32,092		$	31,516		$	30,389		$	31,011		$	31,159		$	31,338		$	30,555
Interest-bearing demand	41,420			42,735			42,477			41,655			41,778			42,207			42,172
Money market	24,807			25,799			26,773			27,256			28,876			25,786			30,656
Savings	57,752			56,075			53,100			49,771			47,964			55,659			46,091
Certificates of deposit	12,766			12,704			12,381			12,153			11,974			12,619			11,957
Total deposits	$	168,837		$	168,829		$	165,120		$	161,846		$	161,751		$	167,609		$	161,431
Performance Ratios
Return on average assets	1.48		%	1.41		%	1.17		%	1.36		%	1.01		%	1.36		%	1.12		%
Noninterest income to total revenue	35		%	32		%	31		%	35		%	32		%	33		%	34		%
Efficiency	72		%	75		%	76		%	74		%	79		%	74		%	78		%

(a) See note (a) on page 11.

THE PNC FINANCIAL SERVICES GROUP, INC.
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Retail Banking (Unaudited) (Continued)

	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions, except as noted	2019			2019			2019			2018			2018			2019			2018
Supplemental Noninterest Income     Information
Consumer services	$	305		$	299		$	277		$	291		$	284		$	881		$	837
Brokerage	$	92		$	86		$	89		$	90		$	86		$	267		$	260
Residential mortgage	$	134		$	82		$	65		$	59		$	76		$	281		$	257
Service charges on deposits	$	178		$	164		$	162		$	185		$	179		$	504		$	503
Residential Mortgage Information
Residential mortgage servicing statistics (in billions, except as noted) (a)
Serviced portfolio balance (b)	$	123		$	124		$	123		$	125		$	127
Serviced portfolio acquisitions	$	3		$	5		$	1		$	2		$	6		$	9		$	10
MSR asset value (b)	$	0.9		$	1.0		$	1.1		$	1.3		$	1.4
MSR capitalization value (in basis points) (b)	72			80			92			100			108
Servicing income: (in millions)
Servicing fees, net (c)	$	44		$	42		$	53		$	49		$	42		$	139		$	132
Mortgage servicing rights valuation, net of economic hedge	$	40		$	7		$	(9	)	$	(19	)	$	—		$	38		$	22
Residential mortgage loan statistics
Loan origination volume (in billions)	$	3.4		$	2.9		$	1.7		$	1.6		$	2.1		$	8.0		$	5.8
Loan sale margin percentage	2.59		%	2.24		%	2.35		%	2.49		%	2.21		%	2.41		%	2.39		%
Percentage of originations represented by:
Purchase volume (d)	44		%	54		%	56		%	67		%	72		%	50		%	67		%
Refinance volume	56		%	46		%	44		%	33		%	28		%	50		%	33		%
Other Information (b)
Customer-related statistics (average)
Non-teller deposit transactions (e)	58		%	56		%	57		%	55		%	55		%	57		%	54		%
Digital consumer customers (f)	70		%	69		%	68		%	67		%	66		%	69		%	65		%
Credit-related statistics
Nonperforming assets	$	1,056		$	1,074		$	1,109		$	1,126		$	1,145
Net charge-offs	$	128		$	120		$	132		$	112		$	96		$	380		$	308
Other statistics
ATMs	9,102			9,072			9,112			9,162			9,093
Branches (g)	2,310			2,321			2,347			2,372			2,388
Brokerage account client assets (in billions) (h)	$	52		$	52		$	51		$	47		$	51

(a) Represents mortgage loan servicing balances for third parties and the related income.

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

(c) Servicing fees net of impact of decrease in MSR value due to passage of time, including the impact from both regularly scheduled loan prepayments and loans that were paid down or paid off during the period.

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

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

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

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

(h) Includes cash and money market balances.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 14 

Table 17: Corporate & Institutional Banking (Unaudited) (a)

	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions	2019			2019			2019			2018			2018			2019			2018
Income Statement
Net interest income	$	930		$	917		$	898		$	930		$	925		$	2,745		$	2,707
Noninterest income	654			661			576			632			592			1,891			1,774
Total revenue	1,584			1,578			1,474			1,562			1,517			4,636			4,481
Provision for credit losses (benefit)	48			100			71			42			(13		)	219			43
Noninterest expense	703			698			686			687			698			2,087			2,019
Pretax earnings	833			780			717			833			832			2,330			2,419
Income taxes	188			178			165			182			190			531			562
Earnings	$	645		$	602		$	552		$	651		$	642		$	1,799		$	1,857
Average Balance Sheet
Loans held for sale	$	720		$	330		$	347		$	669		$	514		$	467		$	763
Loans
Commercial	$	114,701		$	113,702		$	108,641		$	106,082		$	103,474		$	112,371		$	102,342
Commercial real estate	26,570			26,224			25,971			26,183			26,650			26,257			26,699
Equipment lease financing	7,272			7,284			7,264			7,216			7,202			7,273			7,512
Total commercial lending	148,543			147,210			141,876			139,481			137,326			145,901			136,553
Consumer	13			16			20			22			32			16			49
Total loans	$	148,556		$	147,226		$	141,896		$	139,503		$	137,358		$	145,917		$	136,602
Total assets	$	168,193		$	163,897		$	157,169		$	156,997		$	153,987		$	163,126		$	153,149
Deposits
Noninterest-bearing demand	$	38,740		$	38,765		$	39,551		$	42,678		$	43,480		$	39,016		$	44,577
Money market	29,456			26,948			25,630			25,691			24,285			27,358			23,511
Other	27,623			24,811			23,374			23,423			20,343			25,285			19,182
Total deposits	$	95,819		$	90,524		$	88,555		$	91,792		$	88,108		$	91,659		$	87,270
Performance Ratios
Return on average assets	1.52		%	1.47		%	1.42		%	1.65		%	1.66		%	1.47		%	1.62		%
Noninterest income to total revenue	41		%	42		%	39		%	40		%	39		%	41		%	40		%
Efficiency	44		%	44		%	47		%	44		%	46		%	45		%	46		%
Other Information
Consolidated revenue from:
Treasury Management (b)	$	460		$	467		$	445		$	461		$	453		$	1,372		$	1,318
Capital Markets (b)	$	290		$	313		$	246		$	272		$	275		$	849		$	816
Commercial mortgage banking activities
Commercial mortgage loans held for sale (c)	$	38		$	20		$	15		$	29		$	26		$	73		$	78
Commercial mortgage loan servicing income (d)	71			65			54			68			64			190			179
Commercial mortgage servicing rights     valuation, net of economic hedge (e)	1			11			5			1			2			17			26
Total	$	110		$	96		$	74		$	98		$	92		$	280		$	283
MSR asset value (f)	$	595		$	630		$	681		$	726		$	766
Average Loans by C&IB business (g)
Corporate Banking	$	74,883		$	74,366		$	71,089		$	67,567		$	66,560		$	73,460		$	66,145
Real Estate	38,172			37,143			36,357			38,141			37,463			37,231			37,379
Business Credit	22,824			22,877			21,728			21,431			20,928			22,480			20,588
Commercial Banking	7,947			8,080			8,118			8,031			8,112			8,048			8,135
Other	4,730			4,760			4,604			4,333			4,295			4,698			4,355
Total average loans	$	148,556		$	147,226		$	141,896		$	139,503		$	137,358		$	145,917		$	136,602
Credit-related statistics
Nonperforming assets (f)	$	526		$	497		$	388		$	377		$	355
Net charge-offs	$	30		$	23		$	5		$	2		$	1		$	58		$	8

(a) See note (a) on page 11.

(b) Includes amounts reported in net interest income and noninterest income.

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

(d) Represents net interest income and noninterest income (primarily in corporate service fees) from loan servicing net of reduction in commercial mortgage servicing rights due to amortization expense and payoffs. Commercial mortgage servicing rights valuation, net of economic hedge is shown separately.

(e) Includes amounts reported in corporate service fees.

(f) Presented as of period end.

(g) As a result of our first quarter 2019 C&IB business realignment, average loans previously reported as Equipment Finance were reclassified to other C&IB businesses for all periods presented.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 15 

Table 18: Asset Management Group (Unaudited) (a)

	Three months ended															Nine months ended
	September 30			June 30			March 31			December 31			September 30			September 30			September 30
Dollars in millions, except as noted	2019			2019			2019			2018			2018			2019			2018
Income Statement
Net interest income	$	70		$	68		$	70		$	70		$	71		$	208		$	217
Noninterest income	216			286			217			216			228			719			676
Total revenue	286			354			287			286			299			927			893
Provision for credit losses (benefit)	(1		)	—			(1		)	—			2			(2		)	2
Noninterest expense	228			249			230			232			225			707			681
Pretax earnings	59			105			58			54			72			222			210
Income taxes	13			25			13			12			17			51			50
Earnings	$	46		$	80		$	45		$	42		$	55		$	171		$	160
Average Balance Sheet
Loans
Consumer	$	4,207		$	4,216		$	4,362		$	4,522		$	4,623		$	4,261		$	4,702
Commercial and commercial real estate	758			731			752			705			727			747			734
Residential mortgage	1,980			1,792			1,723			1,666			1,605			1,833			1,561
Total loans	$	6,945		$	6,739		$	6,837		$	6,893		$	6,955		$	6,841		$	6,997
Total assets	$	7,331		$	7,150		$	7,259		$	7,328		$	7,397		$	7,247		$	7,455
Deposits
Noninterest-bearing demand	$	1,299		$	1,347		$	1,388		$	1,469		$	1,440		$	1,344		$	1,455
Interest-bearing demand	3,393			2,891			3,076			3,055			3,253			3,121			3,413
Money market	1,740			1,785			2,036			2,001			2,112			1,852			2,339
Savings	6,302			5,875			5,723			5,294			4,955			5,969			4,754
Other	893			797			697			634			537			797			408
Total deposits	$	13,627		$	12,695		$	12,920		$	12,453		$	12,297		$	13,083		$	12,369
Performance Ratios
Return on average assets	2.49		%	4.49		%	2.51		%	2.27		%	2.95		%	3.15		%	2.87		%
Noninterest income to total revenue	76		%	81		%	76		%	76		%	76		%	78		%	76		%
Efficiency	80		%	70		%	80		%	81		%	75		%	76		%	76		%
Other Information
Nonperforming assets (b)	$	42		$	45		$	48		$	46		$	51
Net charge-offs	$	—		$	—		$	1		$	1		$	1		$	1		$	8
Client Assets Under Administration (in billions)     (b) (c)
Discretionary client assets under management	$	163		$	162		$	158		$	148		$	159
Nondiscretionary client assets under administration	135			132			130			124			134
Total	$	298		$	294		$	288		$	272		$	293
Discretionary client assets under management
Personal	$	98		$	99		$	95		$	87		$	97
Institutional	65			63			63			61			62
Total	$	163		$	162		$	158		$	148		$	159

(a) See note (a) on page 11.

(b) As of period end.

(c) Excludes brokerage account client assets.

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 16 

Glossary of Terms

Adjusted average total assets - Primarily consisted 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).

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 those transferred from available for sale and pension and other postretirement benefit plans, subject to phase-in limits, less goodwill, net of associated deferred tax liabilities, less other disallowed intangibles, net of deferred tax liabilities and plus/less other adjustments. Significant common stock investments in unconsolidated financial institutions, as well as mortgage servicing rights and deferred tax assets, must then be deducted to the extent such items individually exceed 10%, or in the aggregate exceed 15%, of our adjusted Basel III common equity Tier 1 capital.

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 qualifying 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).

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 - Total shareholders' equity less the liquidation value of preferred stock.

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

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.”

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: 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.

THE PNC FINANCIAL SERVICES GROUP, INC.
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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.

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. Our product set includes loans priced using LIBOR as a benchmark.

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.

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, 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, automobile, 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).

THE PNC FINANCIAL SERVICES GROUP, INC.
Page 18 

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. Excludes certain assets that have a government-guarantee which are classified as other receivables.

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

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.

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.

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 income - The interest income earned on certain assets that is completely or partially exempt from federal income tax. 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.

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

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.