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

The PNC Financial Services Group, Inc.

BancAnalysts Association of Boston

November 4, 2010

Exhibit 99.1

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

2009

Form

10-K

and

2010

Form

10-Qs,

including

in

the

Risk

Factors

and

Risk

Management

sections

of

those

reports,

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

presentation.

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

the

acceleration

of

accretion

of

the

remaining

issuance

discount

on

our

TARP

preferred

stock

in

connection

with

the

first

quarter

2010

redemption

of

such

stock,

our

fourth

quarter

2009

gain

related

to

BlackRock’s

acquisition

of

Barclays

Global

Investors

(the

“BLK/BGI

gain”),

our

third

quarter

2010

gain

related

to

the

sale

of

PNC

Global

Investment

Servicing

Inc.

(“GIS”),

our

fourth

quarter

2008

conforming

provision

for

credit

losses

for

National

City,

and

integration

costs

in

the

2010

and

2009

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.

We

may

also

adjust

yields

and

margins

for

the

ratio

of

annualized

provision

for

credit

related

losses

to

average

interest-earning

assets.

We

believe

such

adjustments

are

useful

as

a

tool

to

help

evaluate

the

amount

of

credit

related

risk

associated

with

interest-earning

assets.

We

may

also

provide

information

on

pretax

pre-provision

earnings

(total

revenue

less

noninterest

expense),

as

we

believe

that

pretax

pre-

provision

earnings

is

useful

as

a

tool

to

help

evaluate

the

ability

to

provide

for

credit

costs

through

operations.

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

Key Take-Aways

PNC’s business model and execution have delivered strong

results in this challenging environment

PNC has made significant progress toward returning to a

moderate risk profile

PNC has meaningful opportunities to improve market share

PNC has demonstrated the ability to deliver shareholder value

PNC Continues to Build a Great Company.

PNC Continues to Build a Great Company.

4

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

A Powerful Franchise Focused on Quality Growth

8

th

$260 billion

Assets

U.S.

Rank

1

Sept. 30, 2010

6,626

2,461

$179 billion

5

th

ATMs

5

th

Branches

6

th

Deposits

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

CO

TX

KS

OK

BlackRock

A leader in investment management, risk

management and advisory services worldwide

Execution

5

Continuing to Build a Great Company

Continued to deliver strong financial results in a challenging environment

High quality and well-positioned balance sheet; increased bank liquidity and strengthened

capital

Credit quality improvement

Businesses continued to grow clients and deepen relationships

3Q10 highlights

Execution

3Q09

3Q10

Pretax pre-provision

earnings

/provision

1.8x

3.0x

Net income

2.4x

1.6x

(1) Total revenue less noninterest expense.  Further information

is provided in the Appendix.

YTD09

YTD10

$559

$1,103

$1,296

$2,577

Net income

1

6

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

Execution

(1) A period to period dollar or percentage change when revenue growth exceeds expense growth.

1

7

Building a High Quality,

Differentiated Balance Sheet

(1) December 31, 2008 was the closing date of our National City acquisition.

Returning

to a

Moderate

Risk Profile

$260.1

29.4

.6

11.1

39.8

179.2

10.3

40.7

$128.2

$260.1

46.5

150.1

$63.5

Sept. 30, 2010

(9.3)

Other

(7.3)

Preferred equity

($30.9)

Total liabilities and equity

(12.5)

Borrowed funds

(13.3)

Other time/savings

(13.7)

Total deposits

11.9

Common equity

(17.6)

Retail CDs

$17.2

Transaction deposits

(25.5)

Other assets

(25.4)

Total loans

($30.9)

Total assets

$20.0

Change from

Dec. 31, 2008

1

Investment securities

Category (billions)

Loans to deposits ratio of 84%

Loans declined driven by loan

pay-offs, sales, net charge-offs

and ongoing soft demand

Continued to grow transaction

deposits while reducing higher

cost brokered and retail CDs

Added high quality, short-

duration securities

Significant improvement in

common equity

Highlights

8

1.36%

0.64%

0.66%

.04%

1.39%

2.37%

.49%

.13%

.50%

1.78%

.83%

.25%

1.15%

3.99%

2.61%

0.71%

0.88%

3.16%

2002

2003

2004

2005

2006

2007

2008

2009

2010

Provision for credit losses to average loans

Relative Cost of Credit

(1)

Excludes

the

4Q08

conforming

provision

for

credit

losses

of

$504

million

related

to

the

National

City

acquisition.

Average

loans

do

not

reflect

the

National

City

acquisition

as

the

acquisition

closed

on

December

31,

2008.

Other

acquisitions

did

not

similarly

impact

the

ratio.

Including

the

National

City

conforming

provision,

the

provision

for

credit

losses

to

average

loans

for

2008

was

2.09%.

Further

information

is

provided

in

the

Appendix.

(2)

Peers

represents

average

of

banks

identified

in the Appendix. (3) For the nine months ended September 30, 2010, annualized.

Recession

1

3

Returning

to a

Moderate

Risk Profile

PNC

Peers

Overheated economy

Slow growth economy

2

9

Active Credit Risk Management

0%

1%

2%

3%

4%

Nonperforming

loans²

to total

loans

Nonperforming

assets²

to total

assets

Net charge-offs

to average loans

Allowance for

loan and lease

losses³

to

loans

3Q10 reserves / YTD10 annualized NCOs

2.5

1.8

1.6

1.4

1.3

1.2

1.2

1.2

1.1

1.1

1.0

1.0

0.9

MTB

PNC

CMA

JPM

WFC

USB

FITB

BAC

RF

KEY

STI

BBT

COF

X

Key

3Q10

metrics

1

2.18%

2.75%

3.22%

3.84%

1.61%

2.81%

3.48%

3.41%

Returning

to a

Moderate

Risk Profile

(1)

As

of

or

for

the

quarter

ended

September

30,

2010.

Net

charge-offs

to

average

loans

percentages

are

annualized.

Peers

represents

average

of

banks

identified

in

the

Appendix

as

available.

COF

nonperforming

assets

to

total

assets

and

nonperforming

loans

to

total

loans

not

available.

Sources:

SNL

DataSource,

company

reports.

(2)

Does

not

include

purchased

impaired

loans

or

loans

held

for

sale.

(3)

Includes

impairment

reserves

attributable

to

purchased

impaired

loans.

Loans

PNC

acquired from National City that were impaired are purchased impaired loans.

10

(6)

(5)

(4)

(3)

(2)

(1)

0

1

2

3

4

0%

1%

2%

3%

4%

5%

6%

Active Balance Sheet Management

PNC Duration

of Equity

(At Quarter End)

Fed Funds

Effective Rate

(At Quarter End)

2007

2008

2009

+4.6%

100 bps increase

(5.9%)

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 3Q10 NII Sensitivity

(1.8%)

+1.5%

100 bps decrease

100 bps increase

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

Q3

Q4

Q1

Q2

2010

Q3

PNC 3Q10 information is estimated.

Returning

to a

Moderate

Risk Profile

11

Favorable

Credit

Risk-Adjusted

1

Returns

Peer source: SNL DataSource and company reports. (1) Net interest margin less (annualized provision/average interest earning assets). Further information is

provided in the Appendix.

YTD10 net interest margin

7.13%

4.26%

4.18%

4.02%

3.90%

3.82%

3.62%

3.34%

3.22%

3.21%

3.12%

2.86%

2.80%

COF

WFC

PNC

BBT

USB

MTB

FITB

STI

KEY

CMA

JPM

RF

BAC

YTD10

credit

risk-adjusted

NIM

1

5.30%

3.19%

2.96%

2.67%

2.12%

2.06%

2.06%

2.04%

1.98%

1.78%

1.34%

1.17%

0.44%

COF

MTB

PNC

WFC

CMA

USB

BBT

JPM

KEY

FITB

STI

BAC

RF

Returning

to a

Moderate

Risk Profile

12

Credit

Risk-Adjusted

Net

Interest

Margin

1

Trend

3.43%

3.32%

3.14%

2.97%

2.76%

2.68%

2.96%

2.17%

2.49%3

3.26%

3.27%

3.40%

3.38%

3.33%

2.90%

1.45%

2.18%

0.94%

0.50%

1.50%

2.50%

3.50%

4.50%

2002

2003

2004

2005

2006

2007

2008

2009

2010

PNC

credit

risk-adjusted

margin

1

vs.

Peers

2

PNC

Peers

2

(1)

Net

interest

margin

less

(provision/average

interest-earning

assets).

2010

is

for

the

nine

months

ended

September

30,

annualized.

(2)

Peers

represents

average

of

banks

identified

in

the

Appendix.

Peer

source:

SNL

DataSource.

(3)

Excludes

the

4Q08

conforming

provision

for

credit

losses

of

$504

million

related

to

the

National

City

acquisition

as

average

interest-earning

assets

do

not

reflect

the

National

City

acquisition

because

the

acquisition

closed

on

December

31,

2008.

Other

acquisitions

did

not

similarly

impact

the

ratio.

Including

the

National

City

conforming

provision,

the

credit

risk-adjusted

net

interest

margin

was

2.04%.

Further

information on (1) and (3) is provided in the Appendix.

PNC

2.88%

Average

Peers

2

2.68%

Returning

to a

Moderate

Risk Profile

13

Growing Diversified Fee-Based Revenue Streams

Full

year

2008

noninterest

income

mix

1

Annualized

YTD10

noninterest

income

mix

2

(1)

As

reported

in

our

2008

Form

10-K.

On

Feb.

2,

2010

PNC

entered

into

an

agreement

to

sell

GIS,

which

resulted

in

the

operations

of

GIS

being

presented

as

income

from

discontinued

operations,

net

of

income

taxes,

on

our

Consolidated

Income

Statement

for

prior

periods.

GAAP

2008

noninterest

income

(continuing

operations)

was

$2.442

billion

which

does

not

include

$904

million

of

fund

servicing

revenue

and

$21

million

of

other

noninterest

income

related

to

GIS.

(2)

Total

noninterest

income

(continuing

operations)

for

the

nine

months

ended

Sept.

30,

2010

was

$4.244

billion.

Other

includes

net

gains

on

sales

of

securities,

net

other-

than-temporary

impairments,

and

other.

Further

information

on

(1)

and

(2)

is

provided

in

the

Appendix.

Asset

management

$1,001

Consumer services

$1,252

Corporate

services

$949

Residential

mortgage

$723

Deposit

service

charges

$764

18%

22%

13%

17%

13%

Other

$969

17%

Categories in millions

$5.7

billion

Growing

Fee-based

Revenue

Asset

management

$686

Consumer

services

$623

Corporate

services

$704

Deposit

service

charges

$372

20%

19%

21%

27%

Other $78

2%

Categories in millions

$3.4

billion

Fund

servicing

$904

11%

14

Demonstrated Opportunities to Grow

Corporate Services Revenue

2009

2010

Treasury Management

$841

$919

Revenue

1

(1) Consolidated PNC amounts.  Not all of these revenues are reflected in noninterest income.

September YTD

Capital Markets

One of the nation's top

treasury management

providers

Excellent source of low cost

deposits

Continued growth in

purchasing cards to

governments

Broadened Healthcare

Advantage offering –

YTD10

revenue up 20% from YTD09

Strong pipeline including

healthcare providers,

agencies and middle market

companies

2009

2010

$346

$411

Revenue

1

September YTD

A leading provider of innovative

investment banking solutions to

the middle market

In terms of deals

-

#2 middle market deal

bookrunner for 2010

-

#4 U.S. real estate

bookrunner

-

#4 U.S. asset-based credit

lead arranger

Harris Williams YTD10 revenue

up $40 million from YTD09

Further growth expected from

strong pipeline

Growing

Fee-based

Revenue

15

Demonstrated Opportunities to Grow

Fee-Based Revenue

(1) Consolidated PNC amounts. Includes earnings from our equity investment in BlackRock.

2009

2010

$639

$751

Revenue

1

September YTD

Asset Management

Asset Management Group

continued to outperform sales

and client acquisition goals

Further growth expected

-

Common platforms

-

Cross-sell initiatives

-

Market driven potential

PNC assets under

administration over $200 billion

at Sept. 30, 2010

PNC assets under management

up 6% linked quarter to $105

billion

Growing

Fee-based

Revenue

2009

2010

$171

$196

Servicing Fees

September YTD

Residential Mortgage

Aligning the business with

PNC’s model

Focused on leveraging the

customer value relationship

with  differentiated service

Capturing cross-sell

opportunities with banking

businesses

3Q10 loan origination

volumes up 17% linked

quarter

16

A Demonstrated Ability to Grow and

Deepen Relationships

Online banking

2,682

2,968

Online bill payment

753

942

Checking relationships

Growing and retaining checking relationships

Growing

Fee-based

Revenue

Retail active customers

3

(thousands)

3Q09

3Q10

3Q09

3Q10

3Q08

1

3Q09

2

3Q10

+37,000

+43,000

+53,000

(Change during the quarter)

(1) Excludes the impact of the conversion of Sterling Financial Corporation accounts. (2) Excludes the impact of the required divestitures related to the National City

acquisition. (3) At quarter end. 

17

Disciplined Expense Management

Highlights

$800

million

captured

in

2009

$900

million

captured

through

3Q10

PNC acquisition-related cost saves

annualized

12/31/08 –

12/31/09

1/1/10 –

9/30/10

Goal

4Q10

$1.8 billion

$1.7 billion

Branch conversions complete

Successfully captured $1.7 billion in

annualized acquisition-related cost

savings through 3Q10, well ahead of our

original target amount and schedule

Focused on implementing continuous

improvement culture across the franchise

Delivering

Shareholder

Value

18

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

1.30% reported

1.23% adjusted

1

$1.7 billion

38%

1.78%

84%

Sept. 30, 2010

1.50%+

$1.8 billion

>50%

0.3%-0.5%

80%-90%

Strategic

Objective

Return on

average assets

(nine months ended)

Key Metrics

Loans to

deposits ratio

(as of)

Provision to

average loans

(provision for nine

months ended,

annualized)

Noninterest

income/total

revenue

(nine months ended)

Acquisition-

related cost

savings

(3Q10 annualized run

rate)

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

=

original

goal

achieved.

=

new

goal

established

in

2Q10;

original

goals

for

annualized

acquisition-related

cost

savings

and

return

on

average

assets

were

$1.2 billion and 1.30%+, respectively. (1) Adjusted for after-tax integration costs, the after-tax gain on the sale of GIS, and the impact of the accelerated accretion of

the remaining issuance discount in connection with the redemption of our TARP preferred stock in 1Q10. Further information is provided in the Appendix.

Delivering

Shareholder

Value

19

Well Positioned Capital Level to Support Growth

Ratios as of quarter end. Source: Company reports, MTB is estimated.

(1) Estimated.

Sept. 30, 2010 Tier 1 common ratio

PNC’s capital priorities

4.8%

6.4%

7.3%

7.6%

7.6%

8.0%

8.5%

8.6%

9.0%

9.5%

9.6%

10.0%

8.2%

8.0%

PNC

MTB

FITB

RF

USB

STI

WFC

COF

BAC

KEY

BBT

JPM

PNC

CMA

Maintain strong levels

Support our clients

Invest in our

businesses

Basel III clarity

Return capital to

shareholders when

appropriate

Delivering

Shareholder

Value

1

20

A Demonstrated Ability to Achieve

Greater Shareholder Value

Book

value

and

tangible

book

value¹

(1)

Tangible

book

value

per

share

calculated

as

book

value

per

share

less

total

intangible

assets

per

share.

(2)

Peers

represents

average

of

banks

identified

in

the

Appendix.

Source:

SNL

DataSource.

(3)

PNC

believes

that

tangible

book

value,

a

non-GAAP

measure,

is

useful

as

a

tool

to

help

evaluate

the

amount,

on

a

per

share

basis,

of

intangible

assets

included

in

book

value

per

common

share.

Further

information

is

provided

in

the

Appendix.

Delivering

Shareholder

Value

4Q08

3Q10

4Q08

3Q10

4Q08

3Q10

4Q08

3Q10

Book value per share

PNC

Peers

2

Tangible

book

value

per

share

1

PNC

3

Peers

2

$39.44

$55.91

$29.99

$28.98

$13.10

$35.89

$16.85

$18.04

21

Summary

PNC Continues to Build a Great Company.

PNC Continues to Build a Great Company.

We have delivered strong results

We are focused on delivering risk-adjusted revenue

growth

We are committed to delivering shareholder value

22

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,”

“should,”

“project,”

“goal”

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

2009

Form

10-

K

and

2010

Form

10-Qs,

including

in

the

Risk

Factors

and

Risk

Management

sections

of

those

reports,

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

A

slowing

or

failure

of

the

moderate

economic

recovery

that

began

last

year;

o

Continued

effects

of

the

aftermath

of

recessionary

conditions

and

the

uneven

spread

of

the

positive

impacts

of

the

recovery

on

the

economy

in

general

and

our

customers

in

particular,

including

adverse

impact

on

loan

utilization

rates

as

well

as

delinquencies,

defaults

and

customer

ability

to

meet

credit

obligations;

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

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.

23

Cautionary Statement Regarding Forward-Looking Information

(continued)

Appendix

•We

will

be

impacted

by

the

extensive

reforms

enacted

in

the

Dodd-Frank

Wall

Street

Reform

and

Consumer

Protection

Act.

Further,

as

much

of

that

Act

will

require

the

adoption

of

implementing

regulations

by

a

number

of

different

regulatory

bodies,

the

precise

nature,

extent

and

timing

of

many

of

these

reforms

and

the

impact

on

us

is

still

uncertain.

•Financial

industry

restructuring

in

the

current

environment

could

also

impact

our

business

and

financial

performance

as

a

result

of

changes

in

the

creditworthiness

and

performance

of

our

counterparties

and

by

changes

in

the

competitive

and

regulatory

landscape.

•Our

results

depend

on

our

ability

to

manage

current

elevated

levels

of

impaired

assets.

•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

view

that

the

moderate

economic

recovery

that

began

last

year

will

continue

throughout

the

rest

of

2010

and

slowly

gather

momentum

in

2011

amidst

continued

low

interest

rates.

•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

Unfavorable

resolution

of

legal

proceedings

or

other

claims

and

regulatory

and

other

governmental

investigations

or

other

inquiries.

In

addition

to

matters

relating

to

PNC’s

business

and

activities,

such

matters

may

also

include

proceedings,

claims,

investigations,

or

inquiries

relating

to

pre-acquisition

business

and

activities

of

acquired

companies

such

as

National

City;

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.

•Our

expansion

with

our

National

City

acquisition

in

geographic

markets

and

into

business

operations

in

areas

in

which

we

did

not

have

significant

experience

or

presence

prior

to

2009

presents

greater

risks

and

uncertainties

than

were

present

for

us

in

other

recent

acquisitions.

•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.

24

Cautionary Statement Regarding Forward-Looking Information

(continued)

Appendix

•Our

business

and

operating

results

can

also

be

affected

by

widespread

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.

We

grow

our

business

in

part

by

acquiring

from

time

to

time

other

financial

services

companies.

Acquisitions

present

us

with

risks

in

addition

to

those

presented

by

the

nature

of

the

business

acquired.

These

include

risks

and

uncertainties

related

both

to

the

acquisition

transactions

themselves

and

to

the

integration

of

the

acquired

businesses

into

PNC

after

closing.

Acquisitions

may

be

substantially

more

expensive

to

complete

(including

unanticipated

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.

Acquisitions

may

involve

our

entry

into

new

businesses

or

new

geographic

or

other

markets,

and

these

situations

also

present

risks

resulting

from

our

inexperience

in

those

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.

Regul

atory

and/or

legal

issues

relating

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

or

regulatory

limitations

arising

as

a

result

of

those

issues.

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.

25

Non-GAAP to GAAP Reconcilement

Appendix

In millions except per share data and percentages

Adjustments,

pretax

Income taxes

(benefit)¹

Net income

Net income

attributable to

common

shareholders

Diluted EPS

from net

income

Average

Assets

Return on

Avg. Assets

Net income, diluted EPS, and return on avg. assets, as reported

$1,103

$1,094

$2.07

$264,579

1.65%

Adjustments:

   Gain on sale of GIS

$(639)

$311

(328)

(328)

(.62)

   Integration costs

96

(34)

62

62

.11

Net income, diluted EPS, and return on avg. assets, as adjusted

$837

$828

$1.56

$264,579

1.27%

In millions except per share data

Adjustments,

pretax

Income taxes

(benefit)¹

Net income

Net income

attributable to

common

shareholders

Diluted EPS

from net

income

Net income and diluted EPS, as reported

$803

$786

$1.47

Adjustment:

   Integration costs

$100

($35)

65

65

.13

Net income and diluted EPS, as adjusted

$868

$851

$1.60

In millions except per share data

Adjustments,

pretax

Income taxes

(benefit)¹

Net income

Net income

attributable to

common

shareholders

Diluted EPS

from net

income

Net income and diluted EPS, as reported

$559

$467

$1.00

Adjustment:

   Integration costs

$89

($31)

58

58

.12

Net income and diluted EPS, as adjusted

$617

$525

$1.12

For the three months ended September 30, 2010

For the three months ended June 30, 2010

For the three months ended September 30, 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.

(1)

Calculated

using

a

marginal

federal

income

tax

rate

of

35%

and

includes

applicable

income

tax

adjustments.

The

after-tax

gain

on

the

sale

of

GIS

also

reflects

the

impact

of state income taxes.

26

Non-GAAP to GAAP Reconcilement

Appendix

In millions except per share data and percentages

Adjustments,

pretax

Income taxes

(benefit)¹

Net income

Net income

attributable to

common

shareholders

Diluted EPS

from net

income

Average

Assets

Return on

Avg. Assets

Net income, diluted EPS, and return on avg. assets, as reported

$2,577

$2,213

$4.24

$265,355

1.30%

Adjustments:

   Gain on sale of GIS

$(639)

$311

(328)

(328)

(.63)

   Integration costs

309

(108)

201

201

.38

   TARP preferred stock accelerated discount accretion²

250

.48

Net income, diluted EPS, and return on avg. assets, as adjusted

$2,450

$2,336

$4.47

$265,355

1.23%

In millions except per share data

Adjustments,

pretax

Income taxes

(benefit)¹

Net income

Net income

attributable to

common

shareholders

Diluted EPS

from net

income

Net income and diluted EPS, as reported

$1,296

$992

$2.17

Adjustment:

   Integration costs

$266

($83)

183

183

.40

Net income and diluted EPS, as adjusted

$1,479

$1,175

$2.57

(2) Represents accelerated accretion of the remaining issuance discount on redemption of the preferred stock in February 2010.

(1)

Calculated

using

a

marginal

federal

income

tax

rate

of

35%

and

includes

applicable

income

tax

adjustments.

The

after-tax

gain

on

the

sale

of

GIS

also

reflects

the

impact

of state income taxes.

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.

For the nine months ended September 30, 2010

For the nine months ended September 30, 2009

Average loans

Provision to

average loans

$1,517

$72,744

2.09%

504

$1,013

$72,744

1.39%

PNC believes that information adjusted for the impact of this item may be useful due to the extent to which the item is not indicative of our ongoing operations and, in

the percentage, as average loans for 2008 do not reflect National City because the acquisition closed on December 31, 2008.

Year ended December 31, 2008 in millions except percentages

Provision for credit losses

Conforming provision - National City

Provision excluding National City conforming provision

27

Non-GAAP to GAAP Reconcilement

Appendix

For the three months ended

Sept. 30, 2010

June 30, 2010

Mar. 31, 2010

Dec. 31, 2009

Sept. 30, 2009

In millions except ratio and per share data

Total revenue

$3,598

$3,912

$3,763

$4,886

$3,853

Noninterest expense

2,158

2,002

2,113

2,209

2,214

Pretax pre-provision earnings

$1,440

$1,910

$1,650

$2,677

$1,639

Provision

$486

$823

$751

$1,049

$914

Income from continuing operations before income taxes and

noncontrolling interests (Pretax earnings)

$954

$1,087

$899

$1,628

$725

Pretax pre-provision earnings/provision

3.0

2.3

2.2

2.6

1.8

Gain on BLK/BGI transaction

$1,076

Pretax earnings excluding BLK/BGI gain

$1,601

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

1.5

PNC

believes

that

pretax

pre-provision

earnings,

a

non-GAAP

measure,

is

useful

as

a

tool

to

help

evaluate

the

ability

to

provide

for

credit

costs

through

operations,

and

that

information adjusted for the impact of the BLK/BGI gain may be useful due to the extent to which that item is not indicative of our ongoing operations.

For the three months ended

$ in millions

Sept. 30, 2010

June 30, 2010

Mar. 31, 2010

Dec. 31, 2009

Sept. 30, 2009

Net interest margin 

3.96%

4.35%

4.24%

4.05%

3.76%

Provision for credit losses

$486

$823

$751

$1,049

$914

Avg. interest-earning assets

$223,677

$224,580

$226,992

$230,998

$235,694

Annualized provision/Avg. interest-earning assets

0.86%

1.47%

1.34%

1.80%

1.54%

Credit risk-adjusted net interest margin (1)

3.10%

2.88%

2.90%

2.25%

2.22%

For the nine months ended

$ in millions

Sept. 30, 2010

Sept. 30, 2009

Net interest margin 

4.18%

3.72%

Provision for credit losses

$2,060

$2,881

Avg. interest-earning assets

$225,071

$241,010

Annualized provision/Avg. interest-earning assets

1.22%

1.60%

Credit risk-adjusted net interest margin (1)

2.96%

2.12%

PNC

believes

that

credit

risk-adjusted

net

interest

margin,

a

non-GAAP

measure,

is

useful

as

a

tool

to

help

evaluate

the

amount

of

credit

related

risk

associated with interest-earning assets.

(1) The adjustment represents annualized provision for credit losses divided by average interest-earning assets.

28

Non-GAAP to GAAP Reconcilement

Appendix

$ in millions

2002

2003

2004

2005

2006

2007

2008

2009

Net interest margin 

3.99%

3.64%

3.22%

3.00%

2.92%

3.00%

3.37%

3.82%

Provision for credit losses

$309

$177

$52

$21

$124

$315

$1,517

$3,930

Avg. interest-earning assets

$55,345

$55,172

$61,821

$73,001

$77,692

$98,010

$114,484

$238,487

Provision/Avg. interest-earning assets

0.56%

0.32%

0.08%

0.03%

0.16%

0.32%

1.33%

1.65%

Credit risk-adjusted net interest margin (1)

3.43%

3.32%

3.14%

2.97%

2.76%

2.68%

2.04%

2.17%

$504

Adjusted provision for credit losses

$1,013

Avg. interest-earning assets

$114,484

Adjusted provision/Avg. interest-earning assets

0.88%

Adjusted credit risk-adjusted net interest margin (1)

2.49%

For the year ended

(1) The adjustment represents provision for credit losses divided by average interest-earning assets.

Conforming provision - National City

PNC

believes

that

credit

risk-adjusted

net

interest

margin,

a

non-GAAP

measure,

is

useful

as

a

tool

to

help

evaluate

the

amount

of

credit

related

risk

associated

with

interest-earning assets.

Sept. 30, 2010

Sept. 30, 2009

In millions except ratio

Total revenue

$11,273

$11,342

Noninterest expense

6,273

6,864

Pretax pre-provision earnings

$5,000

$4,478

Provision

$2,060

$2,881

Income from continuing operations before income taxes and

noncontrolling interests (Pretax earnings)

$2,940

$1,597

Pretax pre-provision earnings/provision

2.4

1.6

PNC believes that pretax pre-provision earnings, a non-GAAP measure, is useful as a tool to help evaluate the ability to provide for credit costs through operations.

For the nine months ended

29

Non-GAAP to GAAP Reconcilement

Appendix

For the nine months ended

In millions

Sept. 30, 2010

Annualized

Asset management

$751

$1,001

Consumer services

939

1,252

Corporate services

712

949

Residential mortgage

542

723

Service charges on deposits

573

764

Net gains on sales of securities

358

477

Net other-than-temporary impairments

(281)

(375)

Other

650

867

Total other noninterest income

727

969

          Total noninterest income (continuing operations)

$4,244

$5,659

For the year ended

GIS excluded from

GAAP

In millions except percentages

Dec. 31, 2008 10-K

% of total

continuing operations

Noninterest income

(continuing operations)

% of total

Fund servicing

$904

27%

($904)

Asset management

686

20%

$686

28%

Consumer services

623

19%

623

26%

Corporate services

704

21%

704

29%

Service charges on deposits

372

11%

372

15%

Net securities losses

(206)

(206)

Other

284

(21)

263

Total other noninterest income

78

2%

(21)

57

2%

          Total noninterest income

$3,367

($925)

$2,442

PNC believes the noninterest income composition as set forth in the 2008 10-K is useful as a tool to illustrate PNC's revenue composition prior to the sale of GIS and the

acquisition of National City.

30

Non-GAAP to GAAP Reconcilement

Appendix

In millions except per share data

As of Dec. 31, 2008

As of Sept. 30, 2010

Common shareholders' equity

$17,490

$29,394

Common shares outstanding

443

526

Book value per common share

$39.44

$55.91

Intangible assets

$11,688

$10,518

Common shareholders' equity less intangible assets

$5,802

$18,876

Common shares outstanding

443

526

Tangible book value per common share

$13.10

$35.89

PNC

believes

that

tangible

book

value

per

common

share,

a

non-GAAP

measure,

is

useful

as

a

tool

to

help

evaluate

the

amount,

on

a

per

share

basis,

of

intangible assets included in book value per common share.

31

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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