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

The PNC Financial Services Group, Inc.

First Quarter 2006

Earnings Conference Call

April 20, 2006

Exhibit 99.2

2

Earned $354 million or $1.19 per diluted share

BlackRock announced agreement to merge with Merrill Lynch’s

investment management business, creating the largest publicly-

traded asset management company in the U.S.

Experienced solid customer growth and business trends

Disciplined expense management

Asset quality remained strong

Well positioned with anticipated significant capital flexibility

First Quarter 2006 Highlights

3

Retail Banking

$190

$149

28%

26%

Corporate & Institutional Banking

105

110

(5)%

22%

BlackRock

71

47

52%

30%

PFPC

27

23

17%

28% 

Total business segment

earnings

393

329

19%

26%

Minority interest in income

of BlackRock

(22)

(14)

Other

(17)

39

Total consolidated

$354

$354

-

17%

Earnings (Loss)

$ millions

Quarter Ended March 31

2006

2005

Growth

Return on

Avg. Capital *

2006

* Percentages for BlackRock and PFPC reflect return on average equity.

Businesses are Gaining Momentum

4

Net interest income *

$563

(0.9)%

10%

Noninterest income

1,185

2.7%

22%

Total revenue *

1,748

1.5%

18%

Noninterest expense

1,171

2.3%

17%

Pretax, pre-provision income *

577

-

19%

Provision

22

(8.3)%

N/M

Income before minority

interest and income taxes *

555

0.4%

16%

Minority interest

13

N/M

N/M

Income taxes *

188

(3.1)%

59%

Net income

$354

(0.3)%

-

EPS –

diluted

$1.19

(0.8)%

(4)%

First Quarter

2006

$ millions

(except per share data)

Income Statement

Fourth Quarter

2005

First Quarter

2005

% Change vs.

N/M –

not meaningful

* Presented on a taxable-equivalent basis.  See Appendix for GAAP reconciliation of net interest income, total

revenue and income taxes.

5

Building a More Competitive Company

Eliminate 3,000 positions

Implement 2,400 ideas

Achieve $400 million of total

value

2,100 positions eliminated

91% of ideas are complete or

in process

Delivered $60 million in the 1

st

quarter of 2006.  On track to

capture $400 million of value

by 2007.

Expected Outcomes

Update –

As of 3/31/06

One PNC –

Driving Improved

Operating Leverage

6

Total loans

$49.1

0.7%

12%

Securities

$20.9

0.4%

24%

Total interest-earning assets

$76.4

0.3%

12%

Total assets

$92.1

0.1%

11%

Noninterest-bearing demand deposits

$14.0

(0.6)%

12%

Money market deposits

$18.5

(3.7)%

12%

Savings and retail CDs

$15.5

2.1%

18%

Total deposits

$61.0

0.2%

14%

Total borrowed funds

$15.8

(2.6)%

5%

Tangible common equity ratio

5.2%

Loans to deposits

81%

Deposits to total funds

65%

Average balances, $ billions

At quarter-end

Fourth Quarter

2005

First Quarter

2006

First Quarter

2005

% Change vs.

Balance Sheet Highlights -

First Quarter 2006

7

We

make

statements

in

this

presentation,

and

we

may

from

time

to

time

make

other

statements,

regarding

our

outlook

or

expectations

for

earnings,

revenues,

expenses and/or other matters regarding or affecting PNC that are forward-looking statements within the meaning of the Private Securities Litigation Reform Act. 

Forward-looking

statements

are

typically

identified

by

words

such

as

“believe,”

“expect,”

“anticipate,”

“intend,”

“outlook,”

“estimate,”

“forecast,”

“project”

and

other similar words and expressions.

Forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Forward-looking statements speak only as of

the date they are made.  We do not assume any duty and do not undertake to update our forward-looking statements.  Actual results or future events could differ,

possibly materially, from those that we anticipated in our forward-looking statements, and future results could differ materially from our historical performance.

Our forward-looking statements are subject to the following principal risks and uncertainties.  We provide greater detail regarding these factors in our Form 10-K

for the year ended December 31, 2005, including in the Risk Factors and Risk Management sections.  Our forward-looking statements may also be subject to

other

risks

and

uncertainties

including

those

that

we

may

discuss

elsewhere

in

this

presentation

or

in

our

filings

with

the

SEC,

accessible

on

the

SEC’s

website

at www.sec.gov and on or through our corporate website at www.pnc.com.

•

Our business and operating results are affected by business and economic conditions generally or specifically in the principal markets in which we do

business.

We

are

affected

by

changes

in

our

customers’

financial

performance,

as

well

as

changes

in

customer

preferences

and

behavior,

including

as a result of changing economic conditions

•

The value of our assets and liabilities as well as our overall financial performance are affected by changes in interest rates or in valuations in the debt

and equity markets.  Actions by the Federal Reserve and other government agencies, including those that impact money supply and market interest

rates, can affect our activities and financial results.

•

Competition can have an impact on customer acquisition, growth and retention, as well as on our credit spreads and product pricing, which can affect

market share, deposits and revenues.

•

Our ability to implement our One PNC initiative, as well as other business initiatives and strategies we may pursue, could affect our financial

performance over the next several years.

•

Our ability to grow successfully through acquisitions is impacted by a number of risks and uncertainties related both to the acquisition transactions

themselves and to the integration of the acquired businesses into PNC after closing.  These uncertainties are present in transactions such as the

pending acquisition by BlackRock of Merrill Lynch’s investment management business.

Cautionary Statement Regarding

Forward-Looking Information

8

•

Legal and regulatory developments could have an impact on our ability to operate our businesses or our financial condition or results of operations or

our competitive position or reputation.  Reputational impacts, in turn, could affect matters such as business generation and retention, our ability to

attract and retain management, liquidity and funding.  These developments could include:  (a) the resolution of legal proceedings or regulatory and

other governmental inquiries;  (b) increased litigation risk from recent regulatory and other governmental developments;  (c) the results of the

regulatory

examination

process,

our

failure

to

satisfy

the

requirements

of

agreements

with

governmental

agencies,

and

regulators’

future

use

of supervisory and enforcement tools;  (d) legislative and regulatory reforms, including changes to laws and regulations involving tax,

pension, and the protection of confidential customer information;  and (e) changes in accounting policies and principles.

•

Our business and operating results are affected by our ability to identify and effectively manage risks inherent in our businesses, including, where

appropriate, through the effective use of third-party insurance and capital management techniques.

•

Our ability to anticipate and respond to technological changes can have an impact on our ability to respond to customer needs and to meet

competitive demands.  The adequacy of our intellectual property protection, and the extent of any costs associated with obtaining rights in intellectual

property claimed by others, can also impact our business and operating results.

•

Our

business

and

operating

results

can

be

affected

by

widespread

natural

disasters,

terrorist

activities

or

international

hostilities,

either

as

a

result

of the impact on the economy and financial and capital markets generally or on us or on our customers, suppliers or other counterparties specifically.

Also, risks and uncertainties that could affect the results anticipated in forward-looking statements or from historical performance relating to our majority-owned

subsidiary BlackRock, Inc. are discussed in more detail in BlackRock’s 2005 Form 10-K, including in the Risk Factors section, and in BlackRock’s other filings

with the SEC, accessible on the SEC’s website and on or through BlackRock’s website at www.blackrock.com

Any annualized, proforma, estimated, third party or consensus numbers in this presentation are used for illustrative or comparative purposes only and may not

reflect actual results.  Any consensus earnings estimates are calculated based on the earnings projections made by analysts who cover that company.  The

analysts’

opinions,

estimates

or

forecasts

(and

therefore

the

consensus

earnings

estimates)

are

theirs

alone,

are

not

those

of

PNC

or

its

management,

and

may not reflect PNC’s actual or anticipated results.

Cautionary Statement Regarding

Forward-Looking Information (continued)

9

$ millions

Net interest income, GAAP basis

$556

$555

$506

0.2%

10%

Taxable-equivalent adjustment

7

13

6

(46.2)%

17%

Net interest income, taxable-equivalent basis

$563

$568

$512

(0.9)%

10%

Total revenue, GAAP basis

$1,741

$1,709

$1,480

1.9%

18%

Taxable-equivalent adjustment

7

13

6

(46.2)%

17%

Total revenue, taxable-equivalent basis

$1,748

$1,722

$1,486

1.5%

18%

Income taxes, GAAP basis

$181

$181

$112

-

62%

Taxable-equivalent adjustment

7

13

6

(46.2)%

17%

Income taxes, taxable-equivalent basis

$188

$194

$118

(3.1)%

59%

% Change

1Q06

1Q06

vs.

1Q05

1Q06

vs.

4Q05

4Q05

1Q05

Non-GAAP to GAAP

Reconcilement

Appendix

Net Interest Income, Total Revenue and Income Taxes