The PNC Financial Services Group, Inc. (PNC) 8-K Global Financial Services Conference

The PNC Financial Services Group, Inc.

Lehman Brothers

Global Financial Services Conference

September 10, 2008

Exhibit 99.1

Cautionary Statement Regarding Forward-Looking

Information and Adjusted Information

This

presentation

includes

“snapshot”

information

about

PNC

used

by

way

of

illustration.

It

is

not

intended

as

a

full

business

or

financial

review

and

should

be

viewed

in

the

context

of

all

of

the

information

made

available

by

PNC

in

its

SEC

reports.

The

presentation

also

contains

forward-looking

statements

regarding

our

outlook

or

expectations

relating

to

PNC’s

future

business,

operations,

financial

condition,

financial

performance

and

asset

quality.

Forward-looking

statements

are

necessarily

subject

to

numerous

assumptions,

risks

and

uncertainties,

which

change

over

time.

The

forward-looking

statements

in

this

presentation

are

qualified

by

the

factors

affecting

forward-looking

statements

identified

in

the

more

detailed

Cautionary

Statement

included

in

the

Appendix,

which

is

included

in

the

version

of

the

presentation

materials

posted

on

our

corporate

website

at

www.pnc.com/investorevents.

We

provide

greater

detail

regarding

these

factors

in

our

2007

Form

10-K

and

2008

Form

10-Qs,

including

in

the

Risk

Factors

and

Risk

Management

sections,

and

in

our

other

SEC

reports

(accessible

on

the

SEC’s

website

at

www.sec.gov

and

on

or

through

our

corporate

website

at

www.pnc.com/secfilings).

Future

events

or

circumstances

may

change

our

outlook

or

expectations

and

may

also

affect

the

nature

of

the

assumptions,

risks

and

uncertainties

to

which

our

forward-looking

statements

are

subject.

The

forward-looking

statements

in

this

presentation

speak

only

as

of

the

date

of

this

presentation.

We

do

not

assume

any

duty

and

do

not

undertake

to

update

those

statements.

In

this

presentation,

we

will

sometimes

refer

to

adjusted

results

to

help

illustrate

the

impact

of

the

deconsolidation

of

BlackRock

near

the

end

of

third

quarter

2006

and

the

impact

of

certain

types

of

items.

Adjusted

results

reflect,

as

applicable,

the

following

types

of

adjustments:

(1)

2006

and

earlier

periods

reflect

the

impact

of

the

deconsolidation

of

BlackRock

by

adjusting

as

if

we

had

recorded

our

BlackRock

investment

on

the

equity

method

prior

to

its

deconsolidation;

(2)

adjusting

2006

periods,

as

applicable,

to

exclude

the

impact

of

the

third

quarter

2006

gain

on

the

BlackRock/MLIM

transaction

and

losses

on

the

repositioning

of

PNC’s

securities

and

mortgage

loan

portfolios;

(3)

adjusting

fourth

quarter

2006

and

2007

periods

to

exclude

the

net

mark-to-market

adjustments

on

PNC’s

remaining

BlackRock

LTIP

shares

obligation

and,

as

applicable,

the

gain

PNC

recognized

in

first

quarter

2007

in

connection

with

the

company’s

transfer

of

BlackRock

shares

to

satisfy

a

portion

of

its

BlackRock

LTIP

shares

obligation;

(4)

adjusting

2007

and

2006

periods

to

exclude,

as

applicable,

integration

costs

related

to

acquisitions

and

to

the

BlackRock/MLIM

transaction;

(5)

adjusting

2007

periods,

as

applicable,

for

the

fourth

quarter

2007

Visa

litigation

charge;

and

(6)

adjusting,

as

appropriate,

for

the

tax

impact

of

these

adjustments.

We

have

provided

these

adjusted

amounts

and

reconciliations

so

that

investors,

analysts,

regulators

and

others

will

be

better

able

to

evaluate

the

impact

of

these

items

on

our

results

for

the

periods

presented,

in

addition

to

providing

a

basis

of

comparability

for

the

impact

of

the

BlackRock

deconsolidation

given

the

magnitude

of

the

impact

of

deconsolidation

on

various

components

of

our

income

statement

and

balance

sheet.

We

believe

that

information

as

adjusted

for

the

impact

of

the

specified

items

may

be

useful

due

to

the

extent

to

which

these

items

are

not

indicative

of

our

ongoing

operations

as

the

result

of

our

management

activities

on

those

operations.

While

we

have

not

provided

other

adjustments

for

the

2007

and

earlier

periods

discussed,

this

is

not

intended

to

imply

that

there

could

not

have

been

other

similar

types

of

adjustments,

but

any

such

adjustments

would

not

have

been

similar

in

magnitude

to

the

amount

of

the

adjustments

shown.

In

certain

discussions,

we

may

also

provide

information

on

yields

and

margins

for

all

interest-earning

assets

calculated

using

net

interest

income

on

a

taxable-equivalent

basis

by

increasing

the

interest

income

earned

on

tax-exempt

assets

to

make

it

fully

equivalent

to

interest

income

earned

on

taxable

investments.

We

believe

this

adjustment

may

be

useful

when

comparing

yields

and

margins

for

all

earning

assets.

This

presentation

may

also

include

a

discussion

of

other

non-GAAP

financial

measures,

which,

to

the

extent

not

so

qualified

therein

or

in

the

Appendix,

is

qualified

by

GAAP

reconciliation

information

available

on

our

corporate

website

at

www.pnc.com

under

“About

PNC–Investor

Relations.”

Today’s Discussion

The sector landscape

PNC’s differentiation

Investing for innovation and growth

Current Sector Assessment

Asset quality continues to deteriorate

Firms continue to struggle with capital levels

Illiquidity in the markets persists

Regulatory changes are certain

Monetary policy changes are uncertain

There are no quick fixes

We Continue to Operate in a Difficult,

We Continue to Operate in a Difficult,

Unprecedented Environment.

Unprecedented Environment.

The

Sector

Landscape

60.2%

57.9%

58.7%

59.1%

58.1%

60.1%

59.6%

40%

55%

2001

2002

2003

2004

2005

2006

2007

0%

1%

2%

3%

4%

5%

6%

A Short-term Focus on Revenue Growth

By Many Led to Increased Risk Taking

Source:  FDIC; all insured institutions

Strategic Decisions that Led up to the Current

Strategic Decisions that Led up to the Current

Environment Were Evident.

Environment Were Evident.

Increased reliance on

interest income for

growth

Growth in consumer

debt tolerance

Excess liquidity in the

market

Contributing Factors

FDIC Insured Institutions

The

Sector

Landscape

Steeper yield

curve led many to

make cash and

carry trades

Narrow

spreads led many

to take more

credit risk

Source: Mortgage Bankers Association

Foreclosures Going Up, Prices Going Down

Residential Mortgage Loans

% in Foreclosure

0.0

0.2

0.4

0.6

0.8

1.0

2002

2003

2004

2005

2006

2007

2008

PNC’s Forecast Is for Another 8-12 percent

Decline in the Case-Shiller Index.

Case-Shiller Home Price Index, 20-City Composite

-20

-15

-10

-5

0

5

10

15

20

2002

2003

2004

2005

2006

2007

2008

During the early 1990s, house prices did not hit bottom until 1 to 2 years after mortgage

delinquencies peaked.

The

Sector

Landscape

Possible Industry Scenarios

Yield curve

flat

steep

Our industry is facing a high degree of uncertainty

PNC Is Well-Positioned to Respond to Multiple

Scenarios.

PNC continues to invest in

organic growth initiatives

PNC invests in attractive

risk adjusted return

opportunities as they arise

Unlikely

Unlikely

The

Sector

Landscape

The PNC Business Model

Commitment to a moderate risk

profile

-

Asset quality

-

Liquidity position

Ability to grow high quality, diverse

revenue streams

Focus on continuous improvement

Disciplined approach to capital

management

Strong execution and clear

strategies for growth

PNC’s Business Model Performed Well

Delivered Strong First Half 2008

Well-positioned balance sheet resulted in

strong revenue growth

Asset quality migration and related costs

remained manageable

Strengthened capital and maintained

strong liquidity position

Diversified revenue growth created

positive operating leverage

Continued to invest for the future

Despite the Current Environment, PNC

Despite the Current Environment, PNC

Delivered Strong First Half 2008 Results.

Delivered Strong First Half 2008 Results.

PNC’s

Differentiation

PNC’s Differentiated Balance Sheet

PNC’s Balance Sheet Is Well-Positioned and

Delivered Strong Revenue Growth.

7

10.5

Other liabilities and interests in other entities

14%

$19.9

Noninterest-bearing deposits

45

64.8

Interest-bearing deposits

23

32.5

Borrowed funds

11

15.1

Shareholders’

equity

100%

$142.8

Total assets

100%

$142.8

Total liabilities and shareholders’

equity

30

43.0

Commercial loans, net of unearned income

2

2.3

Loans held for sale

19

27.3

Other assets

22

31.0

Securities available for sale

21

30.0

Consumer loans, net of unearned income

$9.2

June 30,

2008

6%

%

Cash and short-term investments

Category (billions)

Key Ratios

PNC

Peers¹

Loans/Deposits

86%

113%

Loans/Assets

51%

70%

Avg. noninterest-bearing

deposits/Avg. interest

earning assets

16%

13%

Avg. securities/Avg. assets

22%

13%

(1) Peer comparison source: SNL DataSource; Peers represents average of super-regional banks identified in the Appendix other than PNC. 

Average balances are for the three months ended June 30, 2008.

PNC’s

Differentiation

Fair value adjustments, primarily commercial mortgage loans held

for sale

-

Does not represent credit quality concerns with underlying assets;

delinquencies minimal

BlackRock LTIP adjustment; $120 million noninterest income reduction

1

-

Market value of investment up $1.7 billion from 2Q08

1

FNMA/FHLMC preferred stock holdings of $80 million

Recent Market Valuations Impacting PNC

PNC Is Not Immune to the Effects of Market

Valuations…But Remains Patient.

PNC’s

Differentiation

Potential impact on tangible common equity

Accumulated other comprehensive loss increases $800 million to $2.0 billion¹

-

Primarily driven by impact on securities available for sale portfolio with an

estimated average life of 4.8 years

-

Does not represent credit quality concerns with underlying assets

-

No impact on Tier 1 capital

Potential impact on 3Q08 pretax earnings

(1) As of August 31, 2008.

Widening

credit

spreads

Lack of

market

liquidity

BlackRock

stock price

appreciation

Liquidity and Capital Flexibility

Tier 1 Capital Ratio

PNC Is Well-Positioned in Terms of Liquidity

and Capital Flexibility.

4Q07

1Q08

2Q08

6.8%

7.7%

8.2%

Relative Liquidity

PNC’s

Differentiation

PNC unused borrowing capacity

$27B

Loans/Deposits

86%

113%

Avg. noninterest-bearing deposits/

Avg. interest earnings assets

16%

13%

Avg. securities/Avg. assets

22%

13%

Numbers at period end;  averages balances are for the three months ended June 30, 2008.  Peer comparison source: SNL DataSource;

Peers represents average of super-regional banks identified in the Appendix, other than PNC.

2Q08 Measure

PNC

Peers

Credit Risk Profile

Peer

comparison

source:

SNL

DataSource;

Peers

represents

average

of

super-regional

banks

identified

in

the

Appendix

other

than

PNC.

0.00%

0.25%

0.50%

0.75%

1.00%

1.25%

1.50%

1.75%

2.00%

Nonperforming

loans to total

loans

Nonperforming

assets to total

assets

Net charge-

offs to average

loans

(three months ended)

Allowance for

loan and lease

losses to loans

.95%

1.59%

.51%

1.28%

.62%

1.41%

1.35%

1.79%

Key 2Q08 Metrics

Credit decisions driven

by risk-adjusted returns

Minimal exposure to

subprime mortgages,

high-yield bridge and

leveraged finance loans

Highly granular portfolio

PNC’s

PNC’s

’s

s

Strategic

Decisions

and

Operating

Discipline

Resulted

in

a

Strong

Relative

Credit

Risk

Profile.

PNC’s

Differentiation

+14%

+32%

+10%

+9%

+12%

+19%

Change vs.

1Q08

2Q07

Strong and Diverse Revenue Growth

PNC’s Revenue Mix Is Valuable and Relies Less

on Credit Capital.

Deposit and

other net interest

income

Loan

net interest

income

10%

29%

19%

Corporate

services

12%

Consumer

services and

deposit

charges

9%

Other

10%

Asset

management

11%

Fund

servicing

Total

revenue

$2.0 billion

Net interest income

Noninterest income

Total revenue

Contribution to

total revenue¹

PNC        Peers²

52%

46%

2Q08 noninterest income/

total revenue

(1)

For

the

three

months

ended

June

30,

2008.

The

sum

of

deposit

NII

and

loan

NII

equals

GAAP

net

interest

income.

Further

information

regarding

revenue

mix

is

provided

in

the

Appendix.

(2)

Peer

comparison

source:

SNL

DataSource;

Peers

represents

average

of

super-

regional

banks

identified

in

the

Appendix

other

than

PNC.

PNC’s

Differentiation

$0

$1

$2

$3

$4

$5

$6

$7

Revenue

+12%

Creating Positive Operating Leverage

$1.2

$1.3

$1.5

2004

2005

2006

Expense

+9%

Compound Annual Growth

(2004-2007, as adjusted)¹

Revenue

+16%

Expense

+9%

For the six months

ended June 30

2008 vs. 2007

Operating

Leverage

+3%

Operating

Leverage

+7%

$1.7

2007

PNC’s Disciplined Growth Strategies Help Drive

Positive Operating Leverage.

Adjusted revenue²

Adjusted noninterest expense³

Adjusted

net

income

4

(1)

As

reported:

revenue

7%,

expense

5%,

operating

leverage

2%.

Adjusted

amounts

are

reconciled

to

GAAP

amounts

in

the

Appendix.

(2) As reported $5.5 billion, $6.3 billion, $8.6 billion, $6.7 billion for 2004, 2005, 2006, 2007, respectively.

(3) As reported $3.7 billion, $4.3 billion, $4.4 billion, $4.3 billion for 2004, 2005, 2006, 2007, respectively.

(4) As reported $1.2 billion, $1.3 billion, $2.6 billion, $1.5 billion for 2004, 2005, 2006, 2007, respectively.

PNC’s

Differentiation

Realistic Plans for Further Growth

PNC Has Maintained Focus on Staying Ahead

PNC Has Maintained Focus on Staying Ahead

of the Revenue Growth Curve.

of the Revenue Growth Curve.

Existing markets

Acquired markets

Emerging client needs

Product depth

Technology platform

Industry expertise

Product innovation

capabilities

Leveraging differentiation

To drive revenue growth

Investing for

Innovation

and Growth

Global Investment Servicing

PNC Is Focused on Advancing Our

PNC Is Focused on Advancing Our

Differentiated Set of Products and Services.

Differentiated Set of Products and Services.

Transforming from an information

processor to an information provider

Investing for

Innovation

and Growth

Changes in the Broad Payments Space

Paper Decline Accelerating

146

129

121

37

31

21

2003

2006

2011 Projected

Cash

Checks

Debit Card Transactions to Exceed

Checks

18

30

50

2003

2006

2011 Projected

Debit Cards

Mainstreaming of Online Payments

18.0

36.5

59.4

8.3

9.9

12.3

2003

2006

2011 Projected

Online Banking Only

Online Bill-Pay

Sources:  McKinsey/GCI Payments Practice, 2007 Federal Reserve Payments Study, Forrester Research, Inc.

Customer and technology driven

change

A shift from cash/check to

electronic payments

Secular payment trends impact

business model over long-term

Investing for

Innovation

and Growth

Changes in Capital Markets

Ongoing Market Liquidity Pressures Present

Ongoing Market Liquidity Pressures Present

Corporate & Institutional Opportunities.

Corporate & Institutional Opportunities.

2004

2005

2006

2007

2008

US CMBS Issuance

US ABS Issuance

Worldwide CDO Issuance

$94B

$169B

$206B

$230B

$24B

2004

2005

2006

2007

2008

$678B

$851B

$909B

$595B

$230B

2004

2005

2006

2007

2008

$157B

$272B

$552B

$503B

$73B

Sources:  Commercial Mortgage Alert, Asset-Backed Alert, Securities Industry and Financial Markets Association.  2008 data equals June 30,

2008, annualized.

Investing for

Innovation

and Growth

$62

$55

$45

$38

2004

2005

2006

2007

Capturing Fee Income Opportunities

PNC Is Leveraging Our Technology

PNC Is Leveraging Our Technology

Differentiation to Capture Opportunities.

Differentiation to Capture Opportunities.

LOCKBOX

EDI

LIQUIDITY

P-CARD

DATA SECURITY

IMAGE CONVERSION

DENIAL MANAGEMENT

CONTRACT MANAGEMENT

PAYMENT BEHAVIOR

DECISION SUPPORT TOOLS

Product Suite

To be the nation’s leading provider of healthcare transaction

processing and decision support services

Goal

Nearly

$2

trillion

in

annual

payments

-

30

billion

transactions

-

growing 7% annually

An estimated $4 billion spent annually on electronic claims

Fifty percent of claims still paper-based

Market

Revenue

($ millions)

Investing for

Innovation

and Growth

Market source:  McKinsey & Company

Capturing Gen-Y Clients

ACCOUNT DETAILS

RECENT TRANSACTIONS

PUNCH THE PIG

SAVINGS ENGINE

WISH LIST

MONEY BAR

DANGER DAYS

BILL PAY

CALENDAR

Product Features

PNC Is Leading The Way in Product

PNC Is Leading The Way in Product

Innovation.

Innovation.

To capture a leading share of the Gen-Y client base across our

footprint

One of our fastest growing consumer bases

Gen-Y will outnumber any other generation by 2017

Total income will surpass Baby Boomers by 2017

An estimated 7+ million Gen-Y’ers in the PNC footprint

Market

Goal

Jun 08

Aug 08

6.9

Accounts

(thousands)

Investing for

Innovation

and Growth

Asset management

+9%

Brokerage

+32%

Consumer services, deposit

charges and other

+11%

Corporate services

+4%

Total noninterest income +10%

Success in the Greater Washington Area

0

25,000

50,000

75,000

100,000

125,000

2Q06

2Q08

Business checking relationships

Consumer checking relationships

Growing Checking Relationships

in PNC’s GWA

PNC Has Demonstrated Success in Deepening

PNC Has Demonstrated Success in Deepening

Relationships and Growing Fees in the GWA.

Relationships and Growing Fees in the GWA.

PNC’s GWA noninterest income highlights

2-year CAGR

Investing for

Innovation

and Growth

Leading the Way in Our New Markets

PNC’s Strong Franchise Sales Growth Is Led by

New Markets on the Rise.

Corporate

Banking

Wealth

Management

Institutional

Investments

Business Bank-

Commercial

Rest of PNC

franchise

38%

Greater

Maryland

10%

Greater

Washington DC

16%

June 08 YTD Annualized Sales

Contribution by Region

Total franchise

2Q08 sales up 20% vs. 1Q08

1H08 sales up 50% vs. 1H07

Greater Washington DC

YoY contribution up from 9% to 16%

1H08 sales up 159% vs. 1H07

Greater Maryland

2Q08 sales up 16% from 1Q08

1H08 sales 176% of goal

Sales Highlights

Products

Pittsburgh

Region

18%

Philadelphia/

S. NJ Region

18%

Investing for

Innovation

and Growth

A Differentiated and Successful Business Model

Commitment to a moderate risk profile

Ability to grow high quality, diverse revenue streams

Focus on continuous improvement

Disciplined approach to capital management

Strong execution and clear strategies for growth

Summary

PNC Is Continuing to Build a Great Company.

PNC Is Continuing to Build a Great Company.

Cautionary Statement Regarding Forward-Looking

Information

Appendix

This

presentation

includes

“snapshot”

information

about

PNC

used

by

way

of

illustration

and

is

not

intended

as

a

full

business

or

financial

review.

It

should

not

be

viewed

in

isolation

but

rather

in

the

context

of

all

of

the

information

made

available

by

PNC

in

its

SEC

reports.

We

also

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,”

“will,”

“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.

Because

forward-looking

statements

are

subject

to

assumptions

and

uncertainties,

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

some

of

these

factors

in

our

2007

Form

10-K

and

our

2008

Form

10-Qs,

including

in

the

Risk

Factors

and

Risk

Management

sections

of

those

reports,

and

in

our

other

SEC

reports.

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/secfilings.

•Our

businesses

and

financial

results

are

affected

by

business

and

economic

conditions,

both

generally

and

specifically

in

the

principal

markets

in

which

we

operate.

In

particular,

our

businesses

and

financial

results

may

be

impacted

by:

oChanges

in

interest

rates

and

valuations

in

the

debt,

equity

and

other

financial

markets.

oDisruptions

in

the

liquidity

and

other

functioning

of

financial

markets,

including

such

disruptions

in

the

markets

for

real

estate

and

other

assets

commonly

securing

financial

products.

oActions

by

the

Federal

Reserve

and

other

government

agencies,

including

those

that

impact

money

supply

and

market

interest

rates.

oChanges

in

our

customers’,

suppliers’

and

other

counterparties’

performance

in

general

and

their

creditworthiness

in

particular.

oChanges

in

customer

preferences

and

behavior,

whether

as

a

result

of

changing

business

and

economic

conditions

or

other

factors.

A

continuation

of

recent

turbulence

in

significant

portions

of

the

global

financial

markets

could

impact

our

performance,

both

directly

by

affecting

our

revenues

and

the

value

of

our

assets

and

liabilities

and

indirectly

by

affecting

the

economy

generally.

Given

current

economic

and

financial

market

conditions,

our

forward-looking

financial

statements

are

subject

to

the

risk

that

these

conditions

will

be

substantially

different

than

we

are

currently

expecting.

These

statements

are

based

on

our

current

expectations

that

interest

rates

will

remain

low

through

2008

with

continued

wide

market

credit

spreads

and

our

view

that

national

economic

conditions

currently

point

toward

a

mild

recession

followed

by

a

subdued

recovery.

Our

operating

results

are

affected

by

our

liability

to

provide

shares

of

BlackRock

common

stock

to

help

fund

certain

BlackRock

long-term

incentive

plan

(“LTIP”)

programs,

as

our

LTIP

liability

is

adjusted

quarterly

(“marked-to-market”)

based

on

changes

in

BlackRock’s

common

stock

price

and

the

number

of

remaining

committed

shares,

and

we

recognize

gain

or

loss

on

such

shares

at

such

times

as

shares

are

transferred

for

payouts

under

the

LTIP

programs.

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

legal

and

regulatory

developments

could

include:

(a)

the

unfavorable

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,

education

lending,

and

the

protection

of

confidential

customer

information;

and

(e)

changes

in

accounting

policies

and

principles.

Cautionary Statement Regarding Forward-Looking

Information (continued)

Appendix

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,

derivatives,

and

capital

management

techniques.

The

adequacy

of

our

intellectual

property

protection,

and

the

extent

of

any

costs

associated

with

obtaining

rights

in

intellectual

property

claimed

by

others,

can

impact

our

business

and

operating

results.

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.

Our

ability

to

implement

our

business

initiatives

and

strategies

could

affect

our

financial

performance

over

the

next

several

years.

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

business

and

operating

results

can

also

be

affected

by

widespread

natural

disasters,

terrorist

activities

or

international

hostilities,

either

as

a

result

of

the

impact

on

the

economy

and

capital

and

other

financial

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

equity

interest

in

BlackRock,

Inc.

are

discussed

in

more

detail

in

BlackRock’s

filings

with

the

SEC,

including

in

the

Risk

Factors

sections

of

BlackRock’s

reports.

BlackRock’s

SEC

filings

are

accessible

on

the

SEC’s

website

and

on

or

through

BlackRock’s

website

at

www.blackrock.com.

We

grow

our

business

from

time

to

time

by

acquiring

other

financial

services

companies.

Acquisitions

in

general

present

us

with

risks

in

addition

to

those

presented

by

the

nature

of

the

business

acquired.

In

particular,

acquisitions

may

be

substantially

more

expensive

to

complete

(including

as

a

result

of

costs

incurred

in

connection

with

the

integration

of

the

acquired

company)

and

the

anticipated

benefits

(including

anticipated

cost

savings

and

strategic

gains)

may

be

significantly

harder

or

take

longer

to

achieve

than

expected.

In

some

cases,

acquisitions

involve

our

entry

into

new

businesses

or

new

geographic

or

other

markets,

and

these

situations

also

present

risks

resulting

from

our

inexperience

in

these

new

areas.

As

a

regulated

financial

institution,

our

pursuit

of

attractive

acquisition

opportunities

could

be

negatively

impacted

due

to

regulatory

delays

or

other

regulatory

issues.

Regulatory

and/or

legal

issues

related

to

the

pre-acquisition

operations

of

an

acquired

business

may

cause

reputational

harm

to

PNC

following

the

acquisition

and

integration

of

the

acquired

business

into

ours

and

may

result

in

additional

future

costs

arising

as

a

result

of

those

issues.

Our

recent

acquisition

of

Sterling

Financial

Corporation

(“Sterling”)

presents

regulatory

and

litigation

risk,

as

a

result

of

financial

irregularities

at

Sterling’s

commercial

finance

subsidiary,

that

may

adversely

impact

our

financial

results.

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

or

other

company’s

actual

or

anticipated

results.

Global Investment Servicing -

Coates Analytics

Distribution Management

Intelligent Dashboard

Transforming from an information processor to an information provider

Appendix

Global Investment Servicing -

Albridge Solutions

Consolidated client account data for performance reporting

Transforming from an information processor to an information provider

Appendix

Non-GAAP to GAAP Reconcilement

Appendix

Adjusted

In millions

2004

2005

2006

2007

'04-'07 CAGR

Adjusted net interest income

$1,955

$2,142

$2,235

$2,915

14%

Adjusted noninterest income

2,928

3,122

3,572

3,921

10%

Adjusted total revenue

4,883

5,264

5,807

6,836

12%

Adjusted noninterest expense

3,148

3,453

3,587

4,112

9%

Adjusted net income

1,197

1,325

1,514

1,702

12%

Adjusted operating leverage

3%

Reported

In millions

2004

2005

2006

2007

'04-'07 CAGR

Net interest income, as reported

$1,969

$2,154

$2,245

$2,915

14%

Noninterest income, as reported

3,572

4,173

6,327

3,790

2%

Total revenue, as reported

5,541

6,327

8,572

6,705

7%

Noninterest expense, as reported

3,712

4,306

4,443

4,296

5%

Net income, as reported

1,197

1,325

2,595

1,467

7%

Operating leverage, as reported

2%

For the year ended December 31, as adjusted

For the year ended December 31, as reported

In millions, for the three months ended

June 30, 2008

March 31, 2008

June 30, 2007

1Q08

2Q07

Net interest income

$977

$854

$738

14%

32%

Loan net interest income

396

337

274

18%

45%

Deposit and other net interest income

581

517

464

12%

25%

Noninterest income

1,062

967

975

10%

9%

Total revenue

$2,039

$1,821

$1,713

12%

19%

% Change for 2Q08 vs.

Non-GAAP to GAAP Reconcilement

Appendix

For the year ended December 31, 2007

PNC

PNC

In millions

As Reported 

Adjustments (a)

As Adjusted

Net interest income

$2,915

$2,915

Noninterest income

3,790

$131

3,921

Total revenue

6,705

131

6,836

Provision for credit losses

315

(45)

270

Noninterest expense

4,296

(184)

4,112

Income before income taxes

2,094

360

2,454

Income taxes

627

125

752

Net income

$1,467

$235

$1,702

BlackRock

For the year ended December 31, 2006

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Adjustments (a)

Other Adjustments

Equity Method

As Adjusted

Net interest income

$2,245

$(10)

$2,235

Noninterest income

6,327

$(1,812)

(1,087)

$144

3,572

Total revenue

8,572

(1,812)

(1,097)

144

5,807

Provision for credit losses

124

124

Noninterest expense

4,443

(91)

(765)

3,587

Income before minority interest and income taxes

4,005

(1,721)

(332)

144

2,096

Minority interest in income of BlackRock

47

18

(65)

Income taxes

1,363

(658)

(130)

7

582

Net income

$2,595

$(1,081)

$(137)

$137

$1,514

(a)

Includes

the

impact

of

the

following

pretax

items:

$2,078

million

gain

on

BlackRock/MLIM

transaction,

$196

million

securities

portfolio

rebalancing

loss,

$101

million

of

BlackRock/MLIM

transaction

integration

costs

($91

million

of

noninterest

expense

and

$10

million

impact

on

noninterest

income),

$48

million

mortgage

loan

portfolio

repositioning

loss,

and

$12

million

net

loss

related

to

our

BlackRock

LTIP

shares

obligation.

The

net

tax

impact

of

these

items

is

reflected

in

the

adjustment

to

income

taxes.

(a)

Amounts

adjusted

to

exclude

the

impact

of

the

following

pretax

items:

(1)

the

gain

of

$83

million

recognized

in

connection

with

PNC's

transfer

of

BlackRock

shares

to

satisfy

a

portion

of

our

BlackRock

LTIP

shares

obligation,

(2)

the

$210

million

net

loss

representing

the

mark-to-market

adjustment

on

our

remaining

BlackRock

LTIP

shares

obligation,

(3)

acquisition

integration

costs

totaling

$151

million,

and

(4)

Visa

indemnification

charge

of

$82

million.

The

net

tax

impact

of

these

items

is

reflected

in

the

adjustment

to

income

taxes.

Non-GAAP to GAAP Reconcilement

Appendix

For the year ended December 31, 2005

BlackRock

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Other Adjustments

Equity Method

As Adjusted

Net interest income

$2,154

$(12)

$2,142

Noninterest income

4,173

(1,214)

$163

3,122

Total revenue

6,327

(1,226)

163

5,264

Provision for credit losses

21

21

Noninterest expense

4,306

(853)

3,453

Income before minority interest and income taxes

2,000

(373)

163

1,790

Minority interest in income of BlackRock

71

(71)

Income taxes

604

(150)

11

465

   Net income

$1,325

$(152)

$152

$1,325

For the year ended December 31, 2004

BlackRock

PNC

Deconsolidation and

BlackRock

PNC

In millions

As Reported

Other Adjustments

Equity Method

As Adjusted

Net interest income

$1,969

$(14)

$1,955

Noninterest income

3,572

(745)

$101

2,928

Total revenue

5,541

(759)

101

4,883

Provision for credit losses

52

52

Noninterest expense

3,712

(564)

3,148

Income before minority interest and income taxes

1,777

(195)

101

1,683

Minority interest in income of BlackRock

42

(42)

Income taxes

538

(59)

7

486

   Net income

$1,197

$(94)

$94

$1,197

The PNC Financial Services Group, Inc.

PNC

BB&T Corporation

BBT

Comerica

CMA

Fifth Third Bancorp

FITB

KeyCorp

KEY

National City Corporation

NCC

Regions Financial

RF

SunTrust Banks, Inc.

STI

U.S. Bancorp

USB

Wachovia Corporation

WB

Wells Fargo & Company

WFC

Ticker

Peer Group of Super-Regional Banks

Appendix