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

The PNC Financial Services Group, Inc.

Sandler O’Neill

West Coast Financial Services Conference

March 3, 2009

Exhibit 99.1

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*

*

*

*

*

*

*

*

*

2

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

filings.

The

presentation

also

contains

forward-looking

statements

regarding

our

outlook

or

expectations

relating

to

PNC’s

future

business,

operations,

financial

condition,

financial

performance,

capital

and

liquidity

levels,

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

2008

Form

10-K,

including

in

the

Risk

Factors

and

Risk

Management

sections,

and

in

our

other

SEC

filings

(accessible

on

the

SEC’s

website

at

www.sec.gov

and

on

or

through

our

corporate

website

at

www.pnc.com/secfilings).

We

have

included

these

web

addresses

as

inactive

textual

references

only.

Information

on

these

websites

is

not

part

of

this

document.

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

certain

types

of

items.

This

information

supplements

our

results

as

reported

in

accordance

with

GAAP

and

should

not

be

viewed

in

isolation

from,

or

a

substitute

for,

our

GAAP

results.

We

provide

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.

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.

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.”

3

Key Take-Aways

The PNC business model has performed well on a

relative basis given the difficult environment

A significant portion of National City’s credit risk

has been recognized through purchase accounting

The National City acquisition presents a

tremendous opportunity to leverage PNC’s

business model and demonstrated ability to

execute

4

A Leader in Executing the Banking Basics

(32%)

11%

3 year CAGR

(28%)

9%

5 year CAGR

(37%)

15%

1 year

Pretax pre-provision earnings²

growth

11%

14%

Average noninterest-bearing deposits

10%

8%

(3%)

7%

13%

Peers¹

12%

11%

6%

12%

19%

PNC

4Q08 growth versus 2Q07

Average total loans

Average total deposits

Average noninterest-bearing deposits

Average total deposits

Average total loans

4Q08 annualized linked quarter growth

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

PNC.  (2) Total revenue less noninterest expense.  Further information is provided in the Appendix.

PNC has remained “open

for business”

throughout

the credit crunch…

…and remains committed

to meeting the needs of

our clients…

Note:  PNC average balances and pretax pre-provision earnings were not impacted by the

National City acquisition, which closed on December 31, 2008.

…while delivering long

term value for our

shareholders.

PNC’s

Business

Model

5

Balance Sheet Composition

PNC’s Commitment to Prudent Risk Management Remains a Top

Priority for Creating Long Term Value.

100%

9

7

18

66%

100%

15

60

15

2

8%

2008 %

of total

$291

25

21

52

$193

$291

43

176

44

4

$24

Dec 31

2008

100%

11

7

22

60%

100%

19

49

22

3

7%

2007 %

of total

Total liabilities and shareholders’

equity

Shareholders’

equity

Other liabilities, interests in consolidated entities

Borrowed funds

Deposits

Total assets

Other assets and loan and lease loss allowance

Loans, net of unearned income

Investment securities

Loans held for sale

Cash and short-term investments

in billions

Dec 31, 2008

Key Ratios

Loans/Assets

PNC

Peers¹

60%

69%

Loans/Deposits

PNC

Peers¹

91%

111%

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

PNC’s

Business

Model

6

Risk Management Overview

PNC’s

Business

Model

PNC Is a Recognized Leader in Risk Management.

PNC Is a Recognized Leader in Risk Management.

PNC monitors multiple risk areas under our Enterprise

Wide Risk program

-

Reputational

-

Liquidity

-

Credit

-

Market

-

Operational

-

Strategic

PNC’s well-established committee structure requires

multiple scenario analysis

-

Economic capital impacts

-

Summary risk assessment

-

Alternate planning

-

Stress testing

-

Threshold compliance

-

Inherent risk trends

7

Relative Credit Risk Profile

Peers

represents

average

of

super-regional

banks

identified

in

the

Appendix

other

than

PNC.

Net

charge-offs

percentage

is

annualized. 

PNC

4Q08

as

reported

information

includes

the

impact

of

National

City,

which

we

acquired

as

of

December

31,

2008.

The

4Q08

information

excluding

the

impact

of

National

City

is

reconciled

to

GAAP

in

the

Appendix.

The

4Q08

net

charge-off

ratio

was

not

impacted

by

the

National

City

acquisition.

0.00%

0.55%

1.10%

1.65%

2.20%

2.75%

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

1.86%

1.94%

.92%

1.55%

1.09%

2.54%

1.77%

2.07%

Key 4Q08 Metrics

(excluding the impact of National City)

Credit migration

accelerated in 4Q08

Strengthened loan loss

reserve coverage

Substantially de-risked

the National City loan

portfolio at closing

Positioned to

outperform on a

relative basis

PNC’s

Business

Model

PNC’s Credit Risk Profile Is Positioned to Outperform

the Peer Group.

PNC 4Q08 as reported     ..74%                .95%               1.09%              2.23%

8

Capital and Liquidity

PNC Is Well-Positioned in Terms of Capital and Liquidity.

21%

88%

5.1%

3.6%

8.2%

Sept 30

2008

15%

91%

4.3%

2.9%

9.7%

Dec 31

2008

Substantial 12/31/08 liquidity position should enable PNC to meet all 2009 debt maturities

Dec 31

2007

Key Capital Ratios

6.8%

Tier 1 risk-based

4.7%

Tangible common equity¹

4.8%

Tangible common equity excluding accumulated

other

comprehensive

loss

1,2

22%

Investment securities to total assets

83%

Loans to deposits

Key Liquidity Ratios

(1)

Common

shareholders’

equity

less

goodwill

and

other

intangible

assets

net

of

eligible

deferred

taxes

(excluding

mortgage

servicing

rights)

divided

by

period-end

assets

less

goodwill

and

other

intangible

assets

net

of

eligible

deferred

taxes

(excluding

mortgage

servicing

rights).

(2)

Accumulated

other

comprehensive

loss

as

of

12/31/08,

9/30/08,

and

12/31/07

was

$3.9

billion,

$2.2

billion,

and

$147

million,

respectively.

Adjusted

percentages

are

reconciled

to

GAAP

in

the

Appendix.

PNC’s

Business

Model

9

Asset Management

One of the top 10 largest bank-

held asset managers

70% of footprint population in

MSAs with median household

incomes greater than the national

aggregate

Footprint population now 95

million, represents almost 1/3rd

of

U.S. total

A significant presence in 33 of the

Top 100 MSAs with offices in 10

state capitals

Retail

Powerful Opportunities Across the Franchise

BlackRock

(offices in 22

countries)

BLK

CO

TX

KS

OK

Leveraging

PNC’s

Business

Model

Global Investment Servicing

(international offices)

A leading provider of processing,

technology and business intelligence

services to asset managers, broker-

dealers, and financial advisors

$2.0 trillion in assets serviced and 72

million shareholder accounts at

December 31, 2008

Corporate & Institutional

Access to 300 of Fortune 1000

companies and nearly 700 hospitals

One of the top 10 Treasury

Management businesses in the U.S.

One of the nation’s largest M&A

advisory firms for middle market

companies

10

Key Integration Objectives

Distressed and core loan portfolios identified, purchase

accounting marks established

Credit approval and loan/deposit pricing processes aligned

Return the balance sheet

to a moderate risk profile

Extensive client communications and outreach efforts –

gathered over $1 billion in corporate deposit relationships to

date

Systems application selection nearly complete and

conversion timelines set

Schedule for branch conversion complete

Process underway, expect significant portion to be achieved

through attrition and elimination of open positions

Cost save plan being implemented

Status

Leverage combined

strengths to capture

clients

Convert branch network

Achieve $1.2 billion of

annualized cost saves

Integrate technology

platforms

Eliminate 5,800 positions

across organization

Objective

The Foundation for a Smooth and Successful Integration Has Been

The Foundation for a Smooth and Successful Integration Has Been

Established and Communicated.

Established and Communicated.

Leveraging

PNC’s

Business

Model

11

Key System Integration Milestones

Leveraging

PNC’s

Business

Model

Closing

System discovery

Application selection

Product mapping

Programming

1H09

Programming

Testing

Phase 1 Bank

conversion

Final stand

alone systems

conversions

Credit reporting

Financial reporting

Management reporting

2H09

1H10

2H10

Phase 2 Bank

conversion

Phase 3 Bank

conversion

Phase 4 Bank

conversion

Planning and actions will be customer focused and in accordance with our focus on

managing toward a moderate risk profile

PNC’s core suite of systems will be augmented with value added systems of NCC

The combination should create a more valuable platform from business continuity to

enhanced enterprise-wide reporting tools

System integration guiding principles

12

Significant Retail and Asset Management

Revenue Opportunity

Combine products and platforms for full impact

delivery across our attractive high net worth

markets

Gain synergies by leveraging the strengths of

personal wealth areas and institutional product sets

Leverage our established branch referral processes

$110B AUM

$125B AUA

$57B AUM

$87B AUA

Asset

management

Expand touch point opportunities to increase our

brand awareness and convenience

6,232

4,041

ATMs³

Leverage one of the largest branch distribution

networks in the U.S.

2,589

1,148

Branches³

2.9 million

Legacy PNC¹

6+ million

PNC²

Allows for deeper penetration of our product set,

especially fee based and payment business related

products

Combine focus on on-line innovation and platform

integration efficiencies

Leverage strengths in small business client area to

provide highly profitable sources of funding

Consumer

and small

business

customers

Opportunity

As

of

December

31,

2008.

PNC

acquired

National

City

Corporation

on

December

31,

2008.

(1)

Does

not

include

and

(2)

includes

the

impact

of

National

City.

(3)

None

of

anticipated

branch

divestitures

or

closings

assumed.

Leveraging

PNC’s

Business

Model

13

Significant Corporate & Institutional

Banking Revenue Opportunity

Combine expertise across top industries

Retain and deepen long-term relationships

Right size portfolios to meet risk/return criteria

$45 billion

$17 billion

Commercial

loans (excluding

real estate)

Combine strengths across DUS, FHA, Mezzanine,

REIT, and low income housing capabilities

Scale back residential development exposures

$28 billion

$9 billion

Commercial

real estate

loans

Leverage established deposit gathering strategy

and relationship based approach

$27 billion

$15 billion

Deposits

Leverage our demonstrated cross selling

capabilities

Significant opportunity to leverage our range of

relationship-based products and services

$400 million

$336 million

Capital

markets

revenue

Leverage combined strengths in the middle market

Opportunity to significantly improve risk adjusted

returns through fee-based product offerings

$975 million

$545 million

Treasury

management

revenue

Legacy PNC¹

PNC²

Opportunity

As of or for the year ended December 31, 2008.  PNC acquired National City Corporation on December 31, 2008.  (1) Does not include

and (2) includes the impact of National City.  Revenue items include PNC estimates of National City revenue as if the acquisition had

been completed at the beginning of 2008.

Leveraging

PNC’s

Business

Model

14

A relentless focus on implementing the PNC model

Managing toward an overall moderate risk profile

Leverage the brand to grow high quality revenue

streams

A focus on continuous improvement while investing

in innovation

Disciplined approach to capital management

Strong execution capabilities

Summary

PNC Continues to Build a Great Company.

PNC Continues to Build a Great Company.

PNC’s

Business

Model

15

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

filings.

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,

capital

levels,

liquidity

levels,

asset

quality

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.

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

2008

Form

10-K,

including

in

the

Risk

Factors

and

Risk

Management

sections

of

that

report,

and

in

our

other

SEC

filings.

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.

We

have

included

these

web

addresses

as

inactive

textual

references

only.

Information

on

these

websites

is

not

part

of

this

document.

•

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:

o

Changes

in

interest

rates

and

valuations

in

the

debt,

equity

and

other

financial

markets.

o

Disruptions 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.

o

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

o

Changes

in

our

customers’,

suppliers’

and

other

counterparties’

performance

in

general

and

their

creditworthiness

in

particular.

o

Changes

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

US

and

global

financial

markets,

particularly

if

it

worsens,

could

impact

our

performance,

both

directly

by

affecting

our

revenues

and

the

value

of

our

assets

and

liabilities

and

indirectly

by

affecting

our

counterparties

and

the

economy generally.

•

Our

business

and

financial

performance

could

be

impacted

as

the

financial

industry

restructures

in

the

current

environment,

both

by

changes

in

the

creditworthiness and performance of our counterparties and by changes in the competitive landscape.

•

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

2009

with

continued

wide

market

credit

spreads,

and

our

view

that

national

economic

trends

currently

point

to

a

continuation

of

severe

recessionary

conditions

in

2009

followed

by

a

subdued

recovery.

16

Cautionary Statement Regarding Forward-Looking

Information (continued)

Appendix

•

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:

o

Changes

resulting

from

the

Emergency

Economic

Stabilization

Act

of

2008,

the

American

Recovery

and

Reinvestment

Act

of

2009,

and

other

developments

in

response

to

the

current

economic

and

financial

industry

environment,

including

current

and

future

conditions

or

restrictions

imposed

as

a

result

of

our

participation

in

the

TARP

Capital

Purchase

Program.

o

Legislative

and

regulatory

reforms

generally,

including

changes

to

laws

and

regulations

involving

tax,

pension,

bankruptcy,

consumer

protection,

and

other

aspects

of

the

financial

institution

industry.

o

Increased

litigation

risk

from

recent

regulatory

and

other

governmental

developments.

o

Unfavorable

resolution

of

legal

proceedings

or

regulatory

and

other

governmental

inquiries.

o

The

results

of

the

regulatory

examination

and

supervision

process,

including

our

failure

to

satisfy

the

requirements

of

agreements

with

governmental

agencies.

o

Changes

in

accounting

policies

and

principles.

•

Our

issuance

of

securities

to

the

US

Department

of

the

Treasury

may

limit

our

ability

to

return

capital

to

our

shareholders

and

is

dilutive

to

our

common

shares.

If

we

are

unable

previously

to

redeem

the

shares,

the

dividend

rate

increases

substantially

after

five

years.

•

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.

This

material

is

referenced

for

informational

purposes

only

and

should

not

be

deemed

to

constitute

a

part

of

this

document.

In

addition,

our

recent

acquisition

of

National

City

Corporation

(“National

City”)

presents

us

with

a

number

of

risks

and

uncertainties

related

both

to

the

acquisition

transaction

itself

and

to

the

integration

of

the

acquired

businesses

into

PNC.

These

risks

and

uncertainties

include

the

following:

•

The

transaction

may

be

substantially

more

expensive

to

complete

(including

the

required

divestitures

and

the

integration

of

National

City’s

businesses)

and

the

anticipated

benefits,

including

anticipated

cost

savings

and

strategic

gains,

may

be

significantly

harder

or

take

longer

to

achieve

than

expected

or

may

not

be

achieved

in

their

entirety

as

a

result

of

unexpected

factors

or

events.

17

Cautionary Statement Regarding Forward-Looking

Information (continued)

Appendix

•

Our

ability

to

achieve

anticipated

results

from

this

transaction

is

dependent

on

the

state

going

forward

of

the

economic

and

financial

markets,

which

have

been

under

significant

stress

recently.

Specifically,

we

may

incur

more

credit

losses

from

National

City’s

loan

portfolio

than

expected.

Other

issues

related

to

achieving

anticipated

financial

results

include

the

possibility

that

deposit

attrition

or

attrition

in

key

client,

partner

and

other

relationships

may

be

greater

than

expected.

•

Litigation

and

governmental

investigations

currently

pending

against

National

City,

as

well

as

others

that

may

be

filed

or

commenced

relating

to

National

City’s

business

and

activities

before

the

acquisition,

could

adversely

impact

our

financial

results.

•

Our

ability

to

achieve

anticipated

results

is

also

dependent

on

our

ability

to

bring

National

City’s

systems,

operating

models,

and

controls

into

conformity

with

ours

and

to

do

so

on

our

planned

time

schedule.

The

integration

of

National

City’s

business

and

operations

into

PNC,

which

will

include

conversion

of

National

City’s

different

systems

and

procedures,

may

take

longer

than

anticipated

or

be

more

costly

than

anticipated

or

have

unanticipated

adverse

results

relating

to

National

City’s

or

PNC’s

existing

businesses.

PNC’s

ability

to

integrate

National

City

successfully

may

be

adversely

affected

by

the

fact

that

this

transaction

will

result

in

PNC

entering

several

markets

where

PNC

did

not

previously

have

any

meaningful

retail presence.

In

addition

to

the

National

City

transaction,

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,

similar

to

some

or

all

of

those

described

above

relating

to

the

National

City

acquisition.

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,

National

City’s,

or

other

company’s

actual

or

anticipated

results.

18

Non-GAAP to GAAP Reconcilement

Appendix

In millions, except percentages

Tier 1 risk-based capital ratio

December 31

2008

Tier 1 risk-based capital

$24,287

Less: TARP issuance

(7,579)

Tier 1 risk-based capital less TARP issuance

$16,708

Risk weighted assets (assumes no decrease in assets without TARP

issuance)

$251,106

Tier 1 risk-based capital ratio as reported

9.7%

Less: TARP issuance

(3.0)%

Tier 1 risk-based capital ratio as adjusted

6.7%

Tangible common equity ratio (a)

December 31

September 30

December 31

2008

2008

2007

Common shareholders' equity

$17,490

$13,711

$14,847

Less intangible assets, net of deferred taxes

(9,206)

(8,812)

(8,734)

Tangible common equity

8,284

4,899

6,113

Add back: accumulated other comprehensive loss (AOCL)

3,949

2,230

147

Tangible common equity, before AOCL

$12,233

$7,129

$6,260

Tangible assets

$281,874

$136,798

$130,185

Add back: AOCL assets

3,252

3,332

(11)

Total assets, excluding AOCL

$285,126

$140,130

$130,174

Tangible common equity ratio, as reported

2.9%

3.6%

4.7%

Add back: AOCL assets

1.4%

1.5%

0.1%

Tangible common equity ratio, as adjusted

4.3%

5.1%

4.8%

(a)

Common

shareholders’

equity

less

goodwill

and

other

intangible

assets

net

of

eligible

deferred

taxes

(excluding

mortgage

servicing

rights)

divided

by

period-end

assets

less

goodwill

and

other

intangible

assets

net

of

eligible

deferred

taxes

(excluding

mortgage

servicing

rights).

19

Non-GAAP to GAAP Reconcilement

Appendix

For the year ended December 31, 

in millions

2003

2004

2005

2006 (c)

2007

2008

'04-'07

CAGR

'07-'08

Change

'05-'08

CAGR

'03-'08

CAGR

Total revenue

$5,253

$5,541

$6,327

$8,572

$6,705

$7,190

7%

7%

Noninterest expense

3,476

3,712

4,306

4,443

4,296

4,430

5%

3%

Pretax pre-provision earnings

$1,777

$1,829

$2,021

$4,129

$2,409

$2,760

15%

11%

9%

Operating leverage

2%

4%

(c) Includes the impact on both revenue and expense of the BlackRock/MLIM transaction.

In millions, except per share data

THREE MONTHS ENDED

Adjustments,

Net

Diluted

Adjustments,

Net

Diluted

Pretax

Income

EPS

Pretax

Income

EPS

Net income (loss), as reported

$(248)

$(.77)

$248

$.71

Adjustments:

   Conforming provision for credit losses - National City

$504

328

.94

   Other integration costs

81

52

.15

$14

9

.02

Net income, as adjusted

$132

$.32

$257

$.73

Adjustments,

Net

Diluted

Pretax

Income

EPS

Net income, as reported

$178

$.52

Adjustments:

   Integration costs

$79

(a)

50

.15

Net income, as adjusted

$228

$.67

YEAR ENDED

Adjustments,

Net

Diluted

Adjustments,

Net

Diluted

Pretax

Income

EPS

Pretax

Income

EPS

Net income, as reported

$882

$2.46

$1,467

$4.35

Adjustments:

   Conforming provision for credit losses - National City

$504

328

.95

   Other integration costs

145

(b)

94

.27

$151

(a)

99

.30

Net income, as adjusted

$1,304

$3.68

$1,566

$4.65

(a)

Includes the $45 million conforming provision for credit losses related to the Yardville acquisition.

(b)

Includes the $23 million conforming provision for credit losses related to the Sterling acquisition.

December 31, 2008

September 30, 2008

December 31, 2007

December 31, 2008

December 31, 2007

20

Non-GAAP to GAAP Reconcilement

Appendix

As of December 31, 2008 ($ in millions)

PNC, excluding National

City (a)

National City

Purchase accounting,

eliminations, and

reclassifications (b)

PNC, as reported

Total assets

$157,373

$153,069

($19,361)

$291,081

Nonperforming assets

1,443

722

2,165

Nonperforming assets to total assets

0.92%

0.74%

Total loans, net of unearned income

$75,830

$108,077

($8,418)

$175,489

Nonperforming loans

1,412

250

1,662

Nonperforming loans to total loans

1.86%

0.95%

Total loans, net of unearned income

$75,830

$108,077

($8,418)

$175,489

Allowance for loan and lease losses

1,343

4,856

(2,282)

3,917

Allowance for loan and lease losses to loans

1.77%

2.23%

(a) Includes $7.6 billion related to the issuance to the US Treasury under the US Treasury's Troubled Asset Relief Program ("TARP") on December 31,

2008 of (1) Fixed Rate Cumulative Perpetual Preferred Stock, Series N, and (2) a warrant for the US Treasury to purchase PNC common stock.

(b) Includes conforming provision for credit losses, elimination of intercompany funding and capital transactions, redesignation of loans held for sale to

loans held for investment, and other reclassifications.

21

The PNC Financial Services Group, Inc.

PNC

BB&T Corporation

BBT

Comerica

CMA

Fifth Third Bancorp

FITB

KeyCorp

KEY

Regions Financial

RF

SunTrust Banks, Inc.

STI

U.S. Bancorp

USB

Wells Fargo & Company

WFC

Ticker

Peer Group of Super-Regional Banks

Appendix

List represents 2008 peer group after acquisitions.