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

The PNC Financial Services Group, Inc.

Citigroup Financial Services Conference

March 11, 2010

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

some

of

these

factors

in

our

most

recent

Form

10-K,

including

in

the

Risk

Factors

and Risk Management sections of that report, and in our subsequent 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 web addresses here and elsewhere in this presentation 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, such as our fourth quarter

2009 gain related to BlackRock’s acquisition of Barclays Global Investors (the “BLK/BGI gain”), our fourth quarter 2008 conforming provision for

credit losses for National City, and other integration costs in the 2009 and 2008 periods.  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

believe

that

this

additional

information

and the reconciliations we provide may be useful to investors, analysts, regulators and others as they evaluate the impact of these respective items

on our results for the periods presented due to the extent to which the 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 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

Today’s Discussion

PNC Continues to Build a Great Company.

PNC Continues to Build a Great Company.

An overview of the PNC business model and

franchise

Our performance has positioned us well with a

strong balance sheet

Our earnings capacity is expected to deliver

strong results in 2010

We are well-positioned to meet our strategic

financial objectives

4

PNC’s Business Model

Staying core funded and disciplined in our deposit pricing

Returning to a moderate risk profile

Leveraging customer relationships and our strong brand to

grow high quality, diverse revenue streams

Creating positive operating leverage while investing in

innovation

Remaining disciplined with our capital

Executing on our strategies

Overview of

PNC

PNC’s Business Model Is Designed to Deliver Strong Results.

5

Footprint covering nearly 1/3 of the U.S.

population

Retail

Corporate & Institutional

A leader in serving middle-market

customers and government entities

One of the largest bank-held asset

managers in the U.S.

Asset Management

Residential Mortgage

One of the nation’s largest mortgage

platforms

PNC’s Powerful Franchise

8

th

$270 billion

Assets

U.S. Rank¹

Dec. 31, 2009

6,473

2,512

$187 billion

5

th

ATMs

5

th

Branches

5

th

Deposits

(1) Rankings source: SNL DataSource; Headquartered in U.S.

CO

TX

KS

OK

BlackRock

A leader in investment management, risk

management and advisory services worldwide

Overview of

PNC

6

2009 Performance Summary

Execution of the PNC business model delivered strong

financial results –

net income of $2.4 billion

Well-positioned balance sheet at year end with an improved

risk profile, increased loan loss reserves, more liquidity and

more capital

Strong

revenue

performance

of

$16.2¹

billion

from

diversified sources

Disciplined expense management -

increased acquisition

cost savings goal to $1.5 billion annualized

Pretax

pre-provision

earnings

1,2

exceeded

credit

costs

by

$3.2 billion

(1)

Revenue

and

noninterest

expense

reflect

presentation

of

results

of

operations

of

PNC

Global

Investment

Servicing

(GIS)

as

income

from

discontinued

operations.

(2)

Total

revenue

less

noninterest

expense.

Revenue

includes

the

$1.076

billion

BLK/BGI

gain.

Further

information

is

provided

in

the

Appendix.

2009

Performance

Summary

7

PNC’s Higher Quality, Differentiated

Balance Sheet

Core funded -

loans to deposits

ratio of 84%

Appropriately reserved

Improved quality and pricing of

deposit base

Asset sensitive –

duration of equity

negative 1.2 years

Higher quality capital

-

Proforma Tier 1 common ratio of

8.0%

1

Balance sheet positioning

-

8

Preferred equity

($21)

$270

Total liabilities and equity

($13)

$39

Borrowed funds

(11)

12

Other time/savings

($6)

$187

Total deposits

(7)   

14

Other liabilities

(10)

49

Retail CDs

$15

$126

Transaction deposits

5

22

Common equity

(16)

57

Other assets

(18)

157

Total loans

($21)

$270

Total assets

$56

Dec. 31,

2009

$13

YoY

change

Investment securities

Category (billions)

PNC Made Substantial Progress in 2009 Transitioning the

PNC Made Substantial Progress in 2009 Transitioning the

Balance Sheet to Reflect Our Business Model.

Balance Sheet to Reflect Our Business Model.

(1)

Reported

Tier

1

common

capital

ratio

was

6.0%

as

of

December

31,

2009.

Proforma

ratio

reflects

Tier

1

common

ratio

had

it

included

the

estimated

net

impact

of

TARP

preferred

stock

redemption,

February

2010

common

equity

offering,

and

pending

sale

of

GIS.

Further

information

is

provided

in

the

Appendix.

2009

Performance

Summary

8

4Q09 loans/deposits

4Q09 loans/assets

4Q09

comm’l

real

estate

loans/assets

Relative Balance Sheet Strength

Information as of quarter end. Peer source: SNL DataSource and company reports.

68%

78%

84%

90%

90%

91%

91%

92%

93%

95%

106%

107%

109%

JPM

COF

PNC

KEY

BBT

BAC

FITB

RF

STI

WFC

CMA

USB

MTB

31%

40%

53%

58%

63%

63%

63%

64%

65%

68%

69%

71%

75%

JPM

BAC

COF

PNC

BBT

WFC

KEY

RF

STI

FITB

USB

CMA

MTB

3%

3%

8%

9%

11%

11%

12%

13%

16%

17%

18%

24%

30%

JPM

BAC

COF

PNC

WFC

BBT

USB

STI

KEY

FITB

CMA

RF

MTB

2009

Performance

Summary

9

Relative Credit Risk Profile

(1) As of or for the year ended December 31, 2009. Peers represents average of banks identified in the Appendix.  Sources: SNL

DataSource, company reports.

Nonperforming

loans to total

loans

Nonperforming

assets to total

assets

Net charge-

offs to average

loans

Allowance for

loan and lease

losses to loans

3.60%

3.96%

2.34%

2.77%

1.64%

2.62%

3.22%

3.38%

PNC’s Commitment to Prudent Risk Management Is Reflected in

Our Credit Metrics.

2009 reserves / net charge-offs

1.9

1.7

1.5

1.5

1.4

1.4

1.3

1.3

1.1

1.1

1.1

1.0

0.9

PNC

MTB

BBT

FITB

RF

JPM

WFC

USB

CMA

KEY

BAC

STI

COF

X

Key 2009 Metrics¹

2009

Performance

Summary

10

6.5%

6.8%

7.0%

7.2%

7.5%

7.7%

7.8%

8.2%

8.5%

8.6%

8.8%

10.2%

8.0%

6.0%

PNC

WFC

USB

FITB

RF

KEY

STI

BAC

PNC

CMA

BBT

MTB

JPM

COF

Relative Capital Positioning

December 31, 2009 Tier 1 common ratio

(1) Further information is provided in the Appendix. Peer source: company reports.

PNC’s capital priorities

Maintain strong capital

levels

Support our clients

Invest in our businesses

Return capital to

shareholders when

appropriate

PNC’s Proforma Tier 1 Common Capital Ratio¹

of 8.0% Provides

Flexibility for Future Growth.

2009

Performance

Summary

11

Pretax Pre-Provision Earnings²

Substantially

Exceeded Credit Costs

$16.2

$9.1

$7.1

$3.9

PNC full year 2009

(1)

Revenue

and

noninterest

expense

reflect

presentation

of

results

of

operations

of

GIS

as

income

from

discontinued

operations.

(2)

Total

revenue

less

noninterest

expense.

Full

year

2009

revenue

of

$16.228

billion

includes

the

$1.076

billion

BLK/BGI

gain.

Full

year

2009

noninterest

expense

was

$9.073

billion.

Further

information

is

provided

in

the

Appendix.

(3)

Further

information

is

provided

in

the

Appendix.

$2.4

1.86

1.83

1.82

1.50

1.47

1.37

1.32

1.22

1.09

0.89

0.66

0.40

0.27

MTB

WFC

PNC

JPM

USB

BBT

COF

FITB

BAC

CMA

RF

STI

KEY

2009 pretax pre-provision earnings²/provision

Excluding the BLK/BGI gain   1.55x³

X

Revenue¹

Noninterest

expense¹

Pretax

pre-

provision

earnings²

Provision

Net

income

PNC Is Recognized for the Ability to Create Positive Operating

PNC Is Recognized for the Ability to Create Positive Operating

Leverage to Help Offset Credit Costs.

Leverage to Help Offset Credit Costs.

2009

Performance

Summary

$15.2 excluding

the BLK/BGI gain

12

Strong Earnings Capacity in 2010

(1) 2010 expectations exclude the impact of the 2009 $1.076 billion pretax BLK/BGI gain and the 2010 impact of the pending sale of GIS. 

(2) Total revenue less noninterest expense. (3) Annualized acquisition-related cost savings goal.

Net interest income and net interest

margin consistent with 3Q09

annualized

Lower noninterest income due to

2009 impact of MSR hedging gains

Reduced expenses driven by

increased acquisition cost saves and

lower integration costs

Credit cost improvement as the

economy recovers

Significant pretax pre-provision

earnings²

will continue to exceed

credit costs

2010

Expectations¹

2009

captured

$800

$1,300+

2011

goal³

$1,500

2010

expectation

4Q09

annualized

>$1,200

PNC acquisition cost saves

(millions)

2010 expectations¹

13

Strategic benefits

Immediate benefits

PNC’s Opportunities for Growth

Strategic

Financial

Objectives

Lower deposit costs

Leveraging cross sell capabilities

Acquisition cost savings

Improvement in credit costs

Leveraging PNC brand to grow clients

across our businesses

Product innovation

Higher loan utilization rates

Commercial real estate refinancings

Improved capital markets and asset

management fees

Higher interest rates

PNC Is Positioned to Deliver Even Greater Shareholder Value as

PNC Is Positioned to Deliver Even Greater Shareholder Value as

the Economy Recovers.

the Economy Recovers.

Execution

14

(6)

(5)

(4)

(3)

(2)

(1)

0

1

2

3

4

0%

1%

2%

3%

4%

5%

6%

Balance Sheet Management

PNC Duration

of Equity

(At Quarter End)

Fed Funds

Effective Rate

(At Quarter End)

2007

2008

2009

1.4%

100 bps increase

(6.0%)

100 bps decrease

Effect

on

NII

in

2

nd

year

from

gradual interest rate change

over preceding 12 months

Effect

on

NII

in

1

st

year

from

gradual interest rate change

over following 12 months

PNC 4Q09 NII Sensitivity

(2.0%)

1.1%

100 bps decrease

100 bps increase

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

PNC’s Balance Sheet Is Well-Positioned to Take Advantage of

Economic Recovery.

Strategic

Financial

Objectives

15

PNC’s Framework for Success

Execute on and deliver the PNC

business model

Capitalize on integration opportunities

Emphasize continuous improvement

culture

Leverage credit that meets our

risk/return criteria

Focus on cross selling PNC’s deep

product offerings

Focus “front door”

on risk-adjusted

returns

Leverage “back door”

credit liquidation

capabilities

Maximize credit portfolio value

Reposition deposit gathering strategies

Action Plans

0.62%²

>$1.2 billion

40%

1,2

2.4%

84%

Dec. 31, 2009

1.30%+

$1.5 billion

>50%

0.3%-0.5%

80%-90%

Strategic

Objective

Return on

average assets

(for the year ended)

Key Metrics

Loans to deposits

ratio

(as of)

Provision to

average loans

(for the year ended)

Noninterest

income/total

revenue

(for the year ended)

Acquisition cost

savings

(4Q09, annualized)

Executing our

strategies

PNC Business

Model

Staying core

funded

Returning to a

moderate risk

profile

Growing high

quality, diverse

revenue

streams

Creating

positive

operating

leverage

(1)

Total

revenue

and

noninterest

income

reflect

presentation

of

results

of

operations

of

GIS

as

income

from

discontinued

operations. 

(2)

Excludes

the

impact

of

the

$1.076

billion

pretax,

$687

million

after-tax,

BLK/BGI

gain.

Including

the

gain,

noninterest

income

to

total

revenue

percentage

for

the

year

was

44%

and

the

return

on

average

assets

for

the

year

was

.87%.

Further

information

is

provided

in

the Appendix.

Strategic

Financial

Objectives

16

Summary

The execution of its business model resulted

in a strong 2009 performance leaving PNC

well-positioned for an economic recovery

PNC’s earnings capacity is expected to deliver

a solid 2010 financial performance

PNC is positioned to achieve its strategic

financial objectives

PNC Continues to Build a Great Company.

PNC Continues to Build a Great Company.

17

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,”

“plan,”

“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

most

recent

Form

10-K,

including

in

the

Risk

Factors

and

Risk

Management

sections

of

that

report,

and

in

our

subsequent

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 levels of unemployment; and

o

Changes in customer preferences and behavior, whether as a result of changing business and economic conditions, climate-related physical

changes or legislative and regulatory initiatives, 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

and

regulatory

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

in

the

first

half

of

2010

but

will

move

upward

in

the

second

half

of

the

year

and

our

view

that

the

modest

economic

recovery

that

began

last

year

will

extend through 2010.

18

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 legislative and regulatory responses to the current economic and financial industry environment;

o

Other legislative and regulatory reforms, including broad-based restructuring of financial industry regulation as well as 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 other claims and 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;

o

Changes

resulting

from

legislative

and

regulatory

initiatives

relating

to

climate

change

that

have

or

may

have

a

negative

impact

on

our

customers’

demand

for

or

use

of

our

products

and

services

in

general

and

their

creditworthiness

in

particular;

and

o

Changes

to

regulations

governing

bank

capital,

including

as

a

result

of

the

so-called

“Basel

3”

initiatives.

•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,

and

by

our

ability

to

meet

evolving

regulatory capital standards.

•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 acquisition of National City Corporation (“National City”) on December 31, 2008 presents us with a number of risks and uncertainties

related

both

to

the

acquisition

itself

and

to

the

integration

of

the

acquired

businesses

into

PNC.

These

risks

and

uncertainties

include

the

following:

•The

anticipated

benefits

of

the

transaction,

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.

19

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.

•Legal

proceedings

or

other

claims

made

and

governmental

investigations

currently

pending

against

National

City,

as

well

as

others

that

may

be

filed,

made

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

includes

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

has

resulted

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

or

other

company’s

actual

or

anticipated

results.

20

Impact of Pending Sale of

PNC Global Investment Servicing¹

(0.2)

(0.0)

Adjustments / other²

1.1

Net intangible assets

1.3

Goodwill and other intangible assets

Elimination of net intangible assets:

Less:

(1.5)

Book equity / intercompany debt

Cash

Book

(billions)

$1.6

(0.2)

0.5

(0.3)

0.8

$2.3

Estimated PNC tangible capital improvement

Eligible deferred income taxes on goodwill

and other intangible assets

After-tax gain / increase in cash

Taxes

Pretax gain

Sales price

$1.8

(0.3)

2.1

$2.3

Estimated gain, cash proceeds and capital enhancement

Appendix

(1)

The

transaction

is

currently

expected

to

close

in

the

third

quarter

of

2010,

subject

to

regulatory

approvals

and

certain

other

closing

conditions.

(2)

Book

column

amount

reflects

transaction

expenses

of

$46

million;

cash

column

amount

reflects

transaction

expenses

of

$46

million

and

$138

million

of

deferred

tax

reversal.  

21

Risk-Based Capital Ratios

1.6

1.6

Net impact of pending sale of GIS³

10.3%

8.0%

Proforma ratios

$23.5

$18.2

Proforma

11.4%

6.0%

Ratios

3.0

(.3)

$13.9

Tier 1 common

3.0

Common equity offering –

February 2010²

(7.6)

TARP preferred stock redemption –

February 2010¹

$26.5

December 31, 2009 -

Capital

Tier 1 risk-based

$ in billions

(1)

Tier

1

common

column

reflects

acceleration

of

accretion

of

remaining

issuance

discount.

(2)

Does

not

reflect

underwriters’

over-

allotment

option.

(3)

Pending

sale

of

PNC

Global

Investment

Servicing

(GIS)

is

anticipated

to

occur

in

the

third

quarter

of

2010

subject

to

regulatory

approvals

and

certain

other

closing

conditions.

Appendix

22

Non-GAAP to GAAP Reconcilement

Appendix

For the three months ended, in millions

Pretax

Income taxes

(benefit)

1

Net income

Reported net income (loss)

($246)

Conforming provision for credit losses -

National City

$504

($176)

328

Net income excluding conforming provision for credit

losses -

National City

$82

Year ended, in millions except per share data

Pretax

Income taxes

(benefit)

1

Net income

Diluted EPS from

net income

Reported net income

$2,403

$4.36

Gain on BlackRock/BGI transation

($1,076)

$389

(687)

(1.51)

Net income excluding gain on BlackRock/BGI transaction

$1,716

$2.85

Year ended, in millions except percentages

Net income

Average assets

Return on

average assets

Reported 

$2,403

$276,876

0.87%

Excluding gain on BlackRock/BGI transaction

$1,716

$276,876

0.62%

Dec. 31, 2008

PNC

believes

that

information

adjusted

for

the

impact

of

certain

items

may

be

useful

due

to

the

extent

to

which

the

items

are

not

indicative

of

our

ongoing operations.

(1)

Calculated

using

a

marginal

federal

income

tax

rate

of

35%.

The

after-tax

gain

on

the

BlackRock/BGI

transaction

also

reflects

the

impact

of

state

income taxes.

Dec. 31, 2009

PNC

believes

that

information

adjusted

for

the

impact

of

certain

items

may

be

useful

due

to

the

extent

to

which

the

items

are

not

indicative

of

our

ongoing operations.

Dec. 31, 2009

23

Non-GAAP to GAAP Reconcilement

Appendix

in millions except percentages

Reported

1

Gain on

BlackRock/BGI

transaction

Reported excluding

BlackRock/BGI gain

Net interest income

$9,083

$9,083

Noninterest income

7,145

$1,076

6,069

Total revenue

$16,228

$1,076

$15,152

Noninterest income/total revenue

44%

40%

Net interest income/total revenue

56%

60%

Year ended

Dec. 31, 2009

in millions except ratios

Total revenue

$16,228

Noninterest expense

9,073

Pretax pre-provision earnings

7,155

Provision for credit losses

3,930

Excess of pretax pre-provision earnings over credit losses

$3,225

Net charge-offs

$2,711

Pretax pre-provision earnings / provision

1.82

Total revenue

$16,228

Gain on BlackRock/BGI transaction

1,076

Total revenue excluding BlackRock/BGI gain

15,152

Noninterest expense

9,073

Pretax pre-provision earnings excluding BlackRock/BGI gain

6,079

Provision for credit losses

3,930

Excess of pretax pre-provision earnings excluding BlackRock/BGI gain over credit losses

$2,149

Net charge-offs

$2,711

Pretax pre-provision earnings excluding BlackRock/BGI gain / provision

1.55

(1)

Reported

net

interest

income,

noninterest

income,

total

revenue,

noninterest

expense,

and

pretax

pre-provision

earnings

reflect

presentation

of

results

of

operations of GIS as income from discontinued operations.

Year ended Dec. 31, 2009

PNC

believes

that

information

adjusted

for

the

impact

of

certain

items

may

be

useful

due

to

the

extent

to

which

the

items

are

not

indicative

of

our

ongoing

operations.

PNC

believes

that

pretax

pre-provision

earnings

is

useful

as

a

tool

to

help

evaluate

ability

to

provide

for

credit

costs

through

operations.

PNC

believes

that

information adjusted for the impact of certain items may be useful due to the extent to which the items are not indicative of our ongoing operations.

24

Non-GAAP to GAAP Reconcilement

Appendix

Adjustments,

pretax

Income

taxes

(benefit)

1

Net

income

Diluted EPS

from net

income

Adjustments,

pretax

Income

taxes

(benefit)

1

Net

income

Diluted EPS

from net

income

$1,107

$2.17

$559

$1.00

($1,076)

$389

(687)

(1.49)

155

(54)

101

.22

$89

($31)

58

.12

$521

$.90

$617

$1.12

Adjustments,

pretax

Income

taxes

(benefit)

1

Net

income

(loss)

Diluted EPS

from net

income (loss)

($246)

$(.77)

$504

($176)

328

.94

81

(29)

52

.15

$134

$.32

Adjustments,

pretax

Income

taxes

(benefit)

1

Net

income

Diluted EPS

from net

income

Adjustments,

pretax

Income

taxes

(benefit)

1

Net

income

Diluted EPS

from net

income

$2,403

$4.36

$914

$2.44

$(1,076)

$389

(687)

(1.51)

$504

($176)

328

.95

421

(147)

274

.60

145

(51)

94

.27

For the three months ended, in millions except per share data

Net income, as reported

Adjustments:

Gain on BlackRock/BGI transaction

Integration costs

Net income, as adjusted

For the three months ended, in millions except per share data

Net income (loss), as reported

Adjustments:

Conforming provision for credit losses -

National City

Other integration costs

Net income, as adjusted

Year ended, in millions except per share data

Net income, as reported

Adjustments:

Gain on BlackRock/BGI transaction

Conforming provision for credit losses -

National City

Other integration costs

Net income, as adjusted

$1,990

$3.45

$1,336

$3.66

Dec. 31, 2009

Sept. 30, 2009

(1) Calculated using a marginal federal income tax rate of 35%.

The after-tax gain on the BlackRock/BGI transaction also reflects the impact of state income taxes.

Dec. 31, 2008

Dec. 31, 2009

Dec. 31, 2008

PNC

believes

that

information

adjusted

for

the

impact

of

certain

items

may

be

useful

due

to

the

extent

to

which

the

items

are

not

indicative

of

our

ongoing

operations.

25

Peer Group of Banks

Appendix

The PNC Financial Services Group, Inc.

PNC

BB&T Corporation

BBT

Bank of America Corporation

BAC

Capital One Financial, Inc.

COF

Comerica Inc.

CMA

Fifth Third Bancorp

FITB

JPMorgan Chase

JPM

KeyCorp

KEY

M&T Bank

MTB

Regions Financial Corporation

RF

SunTrust Banks, Inc.

STI

U.S. Bancorp

USB

Wells Fargo & Co.

WFC

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