Exhibit 99.1

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[PNC ICON]                                                        NEWS RELEASE
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CONTACTS:

MEDIA:
Brian E. Goerke
(412) 762-4550
corporate.communications@pnc.com

INVESTORS:
William H. Callihan
(412) 762-8257
investor.relations@pnc.com


               PNC EARNINGS GROW IN FOURTH QUARTER; COMPANY POSTS
                        $1 BILLION IN NET INCOME FOR 2003

         PITTSBURGH, JAN. 21, 2004 - The PNC Financial Services Group, Inc.
(NYSE: PNC) today reported fourth quarter 2003 net income of $274 million, or
$.98 per diluted share, compared with net income of $262 million, or $.92 per
diluted share, for the fourth quarter of 2002. Net income for the fourth quarter
of 2003 included the cumulative effect of a change in accounting principle that
negatively impacted earnings by $28 million, or $.10 per diluted share. This
charge resulted from the required adoption of new accounting guidance. Earnings
for the fourth quarter of 2002 included a loss of $16 million, or $.05 per
diluted share, from discontinued operations.

         Full year 2003 net income was $1.001 billion or $3.55 per diluted share
compared with $1.184 billion or $4.15 per diluted share for 2002. In addition to
the impact of the cumulative effect of the change in accounting principle,
results for full year 2003 also included expenses totaling $87 million after
taxes, or $.31 per diluted share, in connection with the Corporation's
previously announced agreement with the United States Department of Justice
("DOJ") and related legal and consulting costs.

         "We are pleased with our performance. Our fourth quarter earnings
reflect improved results for Regional Community Banking, Wholesale Banking and
PFPC and continued strong results at BlackRock, as well as the progress we have
made throughout the year in building a platform for growth," said James E. Rohr,
chairman and chief executive officer of The PNC Financial Services Group.
"Although we expect net interest income to remain challenged, we are confident
in our ability to create value. Our high-performing business mix generates
substantial fee-based income. In addition, we will leverage our leading
technology platform, enhanced credit risk profile, and efficiency initiatives to
help fuel growth and profitability."


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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
Earnings - Page 2

         Return on average common shareholders' equity was 16.67 percent for the
fourth quarter of 2003 compared with 15.59 percent for the fourth quarter of
2002. Return on average assets was 1.57 percent for the fourth quarter of 2003
compared with 1.58 percent for the fourth quarter of 2002.

         Return on average common shareholders' equity was 15.06 percent for
full year 2003 and 18.83 percent for 2002. Return on average assets was 1.49
percent for full year 2003 and 1.78 percent for 2002. Excluding the impact of
the DOJ-related expenses, the returns on average common shareholders' equity and
on average assets for full year 2003 would have been 16.37 percent and 1.62
percent, respectively. The Consolidated Financial Highlights contain
reconciliations of the 2003 ratios, as adjusted, to those as reported under
generally accepted accounting principles ("GAAP").

         The returns on average assets for the 2003 periods referred to above
were reduced by the impact of the Corporation's adoption of FASB Interpretation
No. 46 (Revised 2003), "Consolidation of Variable Interest Entities" ("FIN
46R"). See Impact of the Adoption of FIN 46R below and the "Impact of FIN 46R"
schedules included in the Consolidated Financial Highlights for further details
of the income statement and balance sheet line items impacted by PNC's adoption
of this interpretation. The adoption of FIN 46R had no impact on fourth quarter
or full year 2003 consolidated net income.

HIGHLIGHTS

- -    Regional Community Banking grew home equity loans 21 percent on average in
     the fourth quarter of 2003 compared with the fourth quarter of 2002 while
     noninterest-bearing demand deposits grew 11 percent on average.

- -    Wholesale Banking earnings for the fourth quarter of 2003 improved 22
     percent compared with the third quarter of 2003 and 12 percent compared
     with the fourth quarter of 2002.

- -    Earnings from BlackRock for the fourth quarter of 2003 were $41 million, a
     22 percent increase compared with the prior year fourth quarter. Earnings
     from BlackRock totaled $155 million in 2003, an increase of 17 percent over
     2002.

- -    The net interest margin for full year 2003 declined 35 basis points
     compared with the prior year primarily due to lower interest rates as well
     as the impact of the adoption of FIN 46R and the reclassification of trust
     preferred securities to borrowed funds for the second half of 2003 as
     required by the FASB.

- -    Consolidated assets under management grew to $354 billion at December 31,
     2003 compared with $336 billion at September 30, 2003 and $313 billion at
     December 31, 2002.

- -    PFPC provided accounting/administration services for $667 billion of pooled
     investment assets at December 31, 2003, compared with $634 billion at
     September 30, 2003 and $510 billion at December 31, 2002.


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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
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- -    Asset quality improved significantly, including a decline in nonperforming
     assets to $328 million at December 31, 2003 from $396 million at September
     30, 2003 and $418 million at December 31, 2002.

- -    The efficiency initiatives in 2003 resulted in expense savings of
     approximately $34 million in the fourth quarter of 2003, approximately $100
     million for full year 2003 and over $130 million on a run rate basis into
     2004.

- -    In January 2004, the Corporation successfully completed its previously
     announced acquisition of United National Bancorp.

BUSINESS RESULTS
Total business earnings were $328 million for the fourth quarter of 2003
compared with $291 million for both the third quarter of 2003 and the fourth
quarter of 2002. Total business earnings for the fourth quarter of 2003
increased compared with the third quarter of 2003 primarily due to higher
earnings from Regional Community Banking and Wholesale Banking. Total business
earnings also improved compared with the prior year quarter, driven by higher
earnings from both the banking and asset management and processing businesses.
Total business earnings were $1.202 billion for full year 2003 compared with
$1.272 billion for 2002. Asset management and processing businesses contributed
18 percent of total business earnings in 2003 compared with 16 percent in 2002.
Growth in earnings for 2003 from the Wholesale Banking businesses overall and
BlackRock was more than offset by lower earnings from Regional Community
Banking, PNC Advisors and PFPC, resulting in the decline in total business
earnings for the year. The Consolidated Financial Highlights include a
reconciliation of total business earnings to total consolidated earnings and a
reconciliation of net interest income as reported under GAAP to
taxable-equivalent net interest income. The "Other" category in the "Business
Earnings (Loss)" table in the Consolidated Financial Highlights reflects
differences between total business earnings and consolidated earnings as
reported in the first two paragraphs of this news release.

BANKING BUSINESSES
REGIONAL COMMUNITY BANKING

Earnings for Regional Community Banking totaled $159 million for the fourth
quarter of 2003 compared with $138 million for the third quarter of 2003 and
$152 million for the fourth quarter of 2002. The increase in earnings for the
fourth quarter of 2003 compared with the third quarter of 2003 and the fourth
quarter of 2002 was primarily attributable to a decline in noninterest expense
resulting from the benefit of a $25 million vehicle leasing settlement
recognized in the fourth quarter of 2003. The settlement was reached with
insurance carriers regarding certain residual value claims for which a reserve
had been provided in 2001. Apart from the vehicle leasing settlement, fourth
quarter 2003 earnings from Regional Community Banking declined compared with the
fourth quarter of 2002 as the effect of lower taxable-

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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
Earnings - Page 4

equivalent net interest income and higher noninterest expense, including higher
benefit costs, more than offset the impact of $16 million of net securities
gains in the 2003 quarter. Full year 2003 earnings from Regional Community
Banking were $608 million compared with $697 million for 2002. The decline in
earnings in 2003 compared with 2002 primarily resulted from lower
taxable-equivalent net interest income. Taxable-equivalent net interest income
decreased $142 million compared with 2002 due to sales and maturities of
securities that were replaced at lower yields, a change in asset mix and
prepayments in the residential mortgage loan portfolio. These changes masked the
benefit of growth in home equity loans and demand deposits, two of Regional
Community Banking's core products. The decline in taxable-equivalent net
interest income was partially mitigated by a $24 million increase in noninterest
income for 2003 compared with 2002 that was driven by growth in deposit-related
and consumer service fees.

WHOLESALE BANKING

Wholesale Banking includes the results of Corporate Banking, PNC Real Estate
Finance and PNC Business Credit. Wholesale Banking earnings totaled $94 million
for the fourth quarter of 2003 compared with $77 million for the third quarter
of 2003 and $84 million for the fourth quarter of 2002. Full year 2003 earnings
for Wholesale Banking were $306 million compared with $280 million in 2002. The
higher earnings for fourth quarter and full year 2003 reflected improved asset
quality.

         Corporate Banking earnings totaled $61 million for the fourth quarter
of 2003 compared with $37 million for the third quarter of 2003 and $33 million
for the fourth quarter of 2002. Earnings improved for the fourth quarter of 2003
compared with third quarter of 2003 primarily due to a $38 million decrease in
the provision for credit losses. The decrease in the provision for credit losses
reflected $11 million in recoveries in the fourth quarter of 2003 and an
improvement in overall asset quality that included a $52 million decline in
nonperforming assets and a reduction in the level of performing problem credits.
Fourth quarter 2003 earnings were higher than the prior year quarter due to a
$79 million reduction in the provision for credit losses partially offset by a
$40 million reduction in net gains on institutional loans held for sale in the
2003 period. Earnings for Corporate Banking totaled $173 million for full year
2003 and $150 million for 2002. Improved earnings in 2003 reflected a $155
million reduction in the provision for credit losses in 2003 that was partially
offset by a reduction in net gains on institutional loans held for sale and
lower taxable-equivalent net interest income in 2003. A $48 million decrease in
taxable-equivalent net interest income reflected the impact of a decline in
average loans outstanding and loans held for sale in 2003. Average loans
outstanding declined $1.3 billion or 14 percent due to continued weak loan
demand and a strategy to exit client relationships that did not meet the desired
risk/return profile for the capital invested. See also the "Impact of FIN 46R"
schedules included in the Consolidated Financial Highlights for details
regarding the income statement line items impacted by the consolidation of
Market Street Funding Corporation ("Market Street") which is reflected in this
business segment.



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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
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         Earnings from PNC Real Estate Finance totaled $28 million for the
fourth quarter of 2003 compared with $34 million for the third quarter of 2003
and $23 million for the fourth quarter of 2002. Fourth quarter 2003 earnings
declined compared with the third quarter of 2003 as the third quarter included a
reduction of the valuation allowance related to the liquidation of the
institutional loans held for sale. Earnings for the fourth quarter of 2003
improved compared with the prior year quarter as the 2002 fourth quarter
included an increase to the valuation allowance related to the liquidation of
the institutional loans held for sale. PNC Real Estate Finance earned $102
million in 2003 compared with $90 million a year ago. This increase was
primarily due to higher gains on commercial mortgage loan sales in 2003 that
more than offset the impact of lower taxable-equivalent net interest income. See
also the "Impact of FIN 46R" schedules included in the Consolidated Financial
Highlights for details regarding the income statement line items impacted by the
consolidation of certain affordable housing investments which is reflected in
this business segment.

         PNC Business Credit earnings totaled $5 million for the fourth quarter
of 2003 compared with $6 million for the third quarter of 2003 and $28 million
for the fourth quarter of 2002. Earnings for the fourth quarter of 2003 declined
compared with the third quarter of 2003 as the impact of higher gains from asset
sales was more than offset by a higher provision for credit losses and higher
noninterest expense in the fourth quarter of 2003. Earnings for the fourth
quarter of 2002 reflected the benefit of a reduction in the provision for credit
losses resulting from enhancements and refinements to the reserve methodology
implemented in that quarter. Full year 2003 earnings from PNC Business Credit
totaled $31 million compared with $40 million for 2002. Earnings declined in
2003 compared with the prior year primarily due to a $17 million increase in the
provision for credit losses in 2003 attributable to additions to required
reserves against a single loan to a wholesale goods/retail customer.

PNC ADVISORS

Earnings from PNC Advisors totaled $16 million for the fourth quarter of 2003
compared with $20 million for the third quarter of 2003 and $13 million for the
fourth quarter of 2002. Earnings declined in the fourth quarter of 2003 compared
with the third quarter of 2003 as higher fee income driven by improved equity
markets and increased brokerage activity was more than offset by the impact of
lower trading and underwriting income and higher noninterest expense.
Noninterest expense in the fourth quarter of 2003 included a $5 million charge
related to certain employment contracts. Earnings for the fourth quarter of 2002
included a $10 million charge related to an arbitration ruling. PNC Advisors
earnings totaled $72 million for 2003 compared with $97 million for the prior
year. The earnings decline compared with the prior year reflected lower fee
income due to client attrition, reduced brokerage activity and lower
taxable-equivalent net interest income resulting from lower average loan
balances and the level of interest rates in 2003.

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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
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ASSET MANAGEMENT AND PROCESSING BUSINESSES
BLACKROCK

BlackRock's earnings totaled $41 million for the fourth quarter of 2003, $40
million for the third quarter of 2003 and $34 million for the fourth quarter of
2002. Higher earnings for the fourth quarter of 2003 compared with the third
quarter of 2003 and the fourth quarter of 2002 reflected increases in separate
account assets under management, closed-end fund launches and increased
BlackRock Solutions(TM) assignments, partially offset by higher operating and
fund administration and servicing costs. BlackRock has incurred or reserved
approximately $4 million to cover the currently estimated aggregate costs in
connection with industry-wide investigations of mutual fund matters. Earnings
from BlackRock for full year 2003 were $155 million compared with $133 million
in 2002. Earnings increased for 2003 compared with the prior year as higher
revenue, driven by an increase in assets under management and BlackRock
Solutions(TM) assignments, and higher investment income more than offset
increases in marketing and other operating expenses. BlackRock is approximately
70 percent owned by PNC and is consolidated into PNC's financial statements.
Accordingly, approximately 30 percent of BlackRock's earnings are recognized as
minority interest expense in the Corporation's consolidated income statement and
are included in the "Other" category in the Business Earnings (Loss) table in
the Consolidated Financial Highlights.

PFPC

Earnings from PFPC totaled $18 million for the fourth quarter of 2003 compared
with $16 million for the third quarter of 2003 and $8 million for the fourth
quarter of 2002. Increased earnings for fourth quarter 2003 compared with the
third quarter of 2003 reflected the impact of higher fund servicing revenue and
lower debt financing costs that more than offset higher operating expenses.
Results for the fourth quarter of 2002 included a $6 million write-off of an
equity investment. PFPC earned $61 million for full year 2003 compared with $65
million for 2002. PFPC's 2002 results included the benefit of a $19 million
reduction in reserves that were originally established in 2001 largely related
to a previously reported plan to consolidate selected facilities and the benefit
of $13 million of fees related to the renegotiation of a client contract. Apart
from these items, improved operating results in 2003 compared with 2002
reflected a decline in operating expenses, primarily due to benefits from
efficiency initiatives exceeding $50 million and a decrease of approximately $31
million of expenses related to the retirement services unit that was sold
effective June 30, 2003. In addition, results for 2003 were favorably impacted
by a $19 million decrease in debt financing costs due to debt refinancing with
PNC at more favorable current rates. The effect of these factors was partially
offset by lower fund servicing revenue, partly due to the impact of competitive
market conditions on pricing, and costs incurred to support net new business in
2003.



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"OTHER"

The "Other" category includes differences between business performance reporting
and financial statement reporting, equity management activities, minority
interest in income of BlackRock, residual asset and liability management
activities and corporate overhead. A net loss of $25 million was reported in
"Other" for the fourth quarter of 2003 compared with a net loss of $8 million
for the third quarter of 2003 and a net loss of $11 million for the fourth
quarter of 2002. The larger loss in the fourth quarter of 2003 compared with the
third quarter of 2003 primarily resulted from a contribution to the
Corporation's charitable foundation. In the fourth quarter of 2002, the impact
of a similar contribution was more than offset by lower incentive compensation
and other corporate expenses in that period. For full year 2003, "Other"
reflected a net loss of $167 million compared with a net loss of $63 million in
2002. Expenses totaling $120 million, or $87 million after taxes, recognized in
connection with the DOJ agreement and related legal and consulting costs, were
included in the results of "Other" for 2003. "Other" for 2003 also included a
charge of $23 million, or $15 million after taxes, related to leased facilities.

IMPACT OF THE ADOPTION OF DIG B36

Regional Community Banking's business includes the sale of various annuity
products, on which it realizes commission income. In connection with certain of
these transactions, a separate PNC insurance subsidiary has entered into
modified coinsurance agreements with various insurance carriers to reinsure 50
percent of a portion of these annuity obligations. These reinsurance agreements
currently cover approximately 50,000 annuity contracts, with PNC's share of
policyholder account value aggregating $1.2 billion. As part of these
agreements, PNC receives a return on a portfolio of assets held by the insurance
carriers.

         Effective October 1, 2003, as required by the FASB, the Corporation
adopted the provisions of Derivatives Implementation Group Statement 133
Implementation Issue No. B36, "Embedded Derivatives: Modified Coinsurance
Arrangements and Debt Instruments That Incorporate Credit Risk Exposures That
Are Unrelated or Only Partially Related to the Creditworthiness of the Obligor
under Those Instruments" ("DIG B36"), which affects the accounting for these
coinsurance agreements. DIG B36 clarifies Statement of Financial Accounting
Standards No. 133, "Accounting for Derivative Instruments and Hedging
Activities" ("SFAS 133"), by requiring separate accounting for the impact of
certain risks embedded in modified coinsurance agreements as derivatives under
SFAS 133.

         The initial adoption of the provisions of DIG B36 to existing
coinsurance agreements as of October 1, 2003 was reported in PNC's Consolidated
Statement of Income as the cumulative effect of an accounting change and reduced
both fourth quarter and full year 2003 net income by $28 million, or $.10 per
diluted share. Subsequent to its initial adoption, the application of DIG B36
increased other noninterest income by $8 million for fourth quarter and full
year 2003.

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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
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IMPACT OF THE ADOPTION OF FIN 46R

As previously reported, the Corporation elected to early adopt the provisions of
FASB Interpretation No. 46, "Consolidation of Variable Interest Entities" ("FIN
46") effective July 1, 2003. Note 2 Variable Interest Entities included in PNC's
Quarterly Report on Form 10-Q for the three months ended September 30, 2003
provided information regarding the Corporation's adoption of FIN 46, including
descriptions of the Corporation's variable interest entities.

         In late December 2003, the Financial Accounting Standards Board issued
FIN 46R. This revision clarified and/or modified certain provisions of FIN 46
and exempted certain entities from the original requirements of FIN 46.
Application of the revised rules resulted in the determination that the
Corporation was not the primary beneficiary of certain variable interest
entities. In accordance with the transition provisions of FIN 46R, the
Corporation has deconsolidated the following variable interest entities,
effective July 1, 2003, that had been previously consolidated under the
provisions of FIN 46: six collateralized debt obligation funds, for which
BlackRock acts as collateral manager, and a number of private investment funds
organized as limited partnerships managed by the Hawthorn division of PNC
Advisors. As a result, the financial information for the third quarter of 2003
contained in this news release has been adjusted to reflect these changes as
permitted by FIN 46R. The Market Street commercial paper conduit and certain
affordable housing investments previously consolidated in the third quarter of
2003 remained consolidated as of and for the quarter ended December 31, 2003.

         In addition, based on guidance included in FIN 46R, the Corporation
deconsolidated the assets and liabilities of PNC Institutional Capital Trust A,
Trust B, Trust C and Trust D (the "Trusts") effective December 31, 2003. The PNC
Institutional Capital Trust D issued $300 million of capital securities in
December 2003. The deconsolidation of the Trusts removed $1.148 billion of
Mandatorily Redeemable Capital Securities issued by these Trusts while adding
$1.184 billion of junior subordinated debentures and $36 million of other assets
to the Consolidated Balance Sheet at December 31, 2003. The assets represent the
Corporation's ownership of common stock issued by the Trusts. These debentures
were previously issued by the Corporation or its principal bank subsidiary, PNC
Bank, N.A., and were purchased and are held as assets by the Trusts.

         The "Impact of FIN 46R" schedules included in the Consolidated
Financial Highlights include consolidating balance sheet information as of
September 30, 2003 and December 31, 2003 and consolidating income statement
information for the third and fourth quarters of 2003 and for full year 2003
that provide details of the line items and selected ratios impacted by the
consolidation of variable interest entities in which PNC is the primary
beneficiary. The consolidation of these entities resulted in increases in total
assets and liabilities of $2.6 billion and $2.4 billion, respectively, and
decreased regulatory capital ratios at December 31, 2003. The consolidation also
reduced the net interest margin and impacted several

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income statement line items significantly, but had no impact on consolidated net
income for the third or fourth quarters of 2003 or for the full year 2003.

CONSOLIDATED REVENUE REVIEW

Total revenue represents the sum of taxable-equivalent net interest income and
noninterest income. Total revenue was $1.349 billion for the fourth quarter of
2003, an increase of $35 million compared with the third quarter of 2003 and an
increase of $56 million compared with the fourth quarter of 2002. Total revenue
for the fourth quarter of 2003 and the third quarter of 2003 included $9 million
and $8 million, respectively, related to the adoption of FIN 46R. For full year
2003, total revenue was $5.263 billion, a decrease of $144 million compared with
the prior year.

NET INTEREST INCOME

Taxable-equivalent net interest income totaled $488 million and the net interest
margin was 3.38 percent for the fourth quarter of 2003 compared with $489
million and 3.44 percent, respectively, for the third quarter of 2003.
Taxable-equivalent net interest income was $527 million and the net interest
margin was 3.87 percent for the fourth quarter of 2002.

         Taxable-equivalent net interest income was $2.006 billion and the net
interest margin was 3.64 percent for full year 2003, a decline of $204 million
and 35 basis points compared with the prior year. The low interest rate
environment, prepayments in the residential mortgage loan portfolio and the
sales and maturities of securities that were replaced at lower yields resulted
in a decline in taxable-equivalent net interest compared with 2002. In addition,
PNC's adoption effective July 1, 2003, of Statement of Financial Accounting
Standards No. 150, "Accounting for Certain Financial Instruments with
Characteristics of both Liabilities and Equity" ("SFAS 150"), negatively
impacted 2003 taxable-equivalent net interest income by $29 million and the net
interest margin by 5 basis points. As required by SFAS 150, the Corporation's
mandatorily redeemable capital securities of subsidiary trusts (trust preferred
securities) totaling $848 million were reclassified in the third quarter of 2003
from between the liabilities and shareholders' equity sections of the
Consolidated Balance Sheet to borrowed funds. The dividends paid on these
financial instruments, previously classified as noninterest expense, were
recharacterized as interest expense. Reclassification of prior period amounts
was not permitted under SFAS 150. Effective December 31, 2003, the Trusts that
issued trust preferred securities were deconsolidated based on guidance provided
by FIN 46R - see "Impact of the Adoption of FIN 46R" above for additional
information.

         Also, the consolidation of variable interest entities due to the
adoption of FIN 46R increased full year 2003 taxable-equivalent net interest
income by $3 million and average interest-earning assets by $1.2 billion. These
changes negatively impacted the full year 2003 net interest margin by 7 basis
points.






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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
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NONINTEREST INCOME

Noninterest income totaled $861 million and represented 64 percent of total
revenue for the fourth quarter of 2003 compared with $825 million and 63
percent, respectively, for the third quarter of 2003. Noninterest income was
$766 million and represented 59 percent of total revenue for the fourth quarter
of 2002. Noninterest income included $8 million and $6 million in the fourth and
third quarters of 2003, respectively, related to the adoption of FIN 46R.

         The following table highlights changes in specific items contained
within consolidated noninterest income:



                                                                  Fourth quarter     Third quarter  Fourth quarter
In millions                                                                  2003             2003            2002
- -------------------------------------------------------------------------------------------------------------------
                                                                                            
Adoption of FIN 46R (a)                                                        $8               $6
Net securities gains                                                           15               19              $1
Gains on loans held for sale, net of valuation adjustments (b)                 16               23              52
Net gains on sales of commercial mortgages (b)                                 14               15              12
Gains on sales of education loans (c)                                           8                4              10
NBOC put option valuation income (c)                                                             1               9
PFPC retirement services (d)                                                    1                2               6
Equity management losses                                                                        (4)           (14)
All other                                                                     799              759             690
                                                                 --------------------------------------------------
     Noninterest income                                                      $861             $825            $766
                                                                 --------------------------------------------------


(a)     Included in "Corporate services", and "Investments held by certain
        variable interest entities" in the Consolidated Statement of Income.
(b)     Included in "Corporate services" in the Consolidated Statement of
        Income.
(c)     Included in "Other" noninterest income in the Consolidated Statement of
        Income.
(d)     Included in "Fund Servicing" and "Other" noninterest income in the
        Consolidated Statement of Income. PFPC sold this business effective June
        30, 2003.

         All other noninterest income for the fourth quarter of 2003 increased
$40 million compared with the third quarter of 2003. The increase was primarily
due to higher asset management and fund servicing fees, driven by growth in
assets managed and serviced and improved equity markets, and higher other
noninterest income that included gains on sales of assets. All other noninterest
income for the fourth quarter of 2003 increased $109 million compared with the
fourth quarter of 2002. The increase was driven by higher asset management fees,
higher corporate services and trading income, and higher gains on sales of
assets.

        Noninterest income totaled $3.257 billion for full year 2003 compared
with $3.197 billion for 2002, an increase of $60 million.

CONSOLIDATED EXPENSES REVIEW

Noninterest expense totaled $858 million and the efficiency ratio was 66 percent
for the fourth quarter of 2003 compared with $827 million and 63 percent,
respectively, for the third quarter of 2003. Noninterest expense included $17
million and $19 million in the fourth and third quarters of 2003, respectively,
related to the adoption of FIN 46R. Noninterest expense totaled $791 million and
the efficiency ratio was 63 percent for the fourth quarter of 2002. The
following table highlights changes in specific items contained within
consolidated noninterest expense:

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                                                                        Fourth quarter  Third quarter  Fourth quarter
In millions                                                                     2003           2003            2002
- --------------------------------------------------------------------------------------------------------------------
                                                                                               
Adoption of FIN 46R (a)                                                          $17            $19
PNC Advisors employment contracts charge                                           5
Distributions on capital securities (trust preferred securities)                                                $14
PFPC retirement services (b)                                                       1              1              10
Legal and consulting fees related to regulatory compliance and
   certain legal proceedings  (a)                                                  1              1              10
PNC Foundation contribution (a)                                                   12              1              13
Washington Mutual litigation settlement (a)                                                                    (15)
Net litigation costs - PNC Advisors (a)                                                                          10
Vehicle leasing settlement (a)                                                  (25)
PFPC equity investment write-off (a)                                                                              6
All other                                                                        847            805             743
                                                                       ---------------------------------------------
    Noninterest expense                                                         $858           $827            $791
                                                                       ---------------------------------------------


(a)     Included in "Other" noninterest expense in the Consolidated Statement of
        Income.
(b)     Included in "Staff expense", "Net occupancy", "Equipment" and "Other"
        noninterest expense in the Consolidated Statement of Income. PFPC sold
        this business effective June 30, 2003.

         All other noninterest expense for the fourth quarter of 2003 increased
$42 million compared with the third quarter of 2003 primarily due to higher
sales-based incentive compensation and increased benefit costs and other
noninterest expense that more than offset a $5 million greater benefit from
efficiency initiatives in the fourth quarter 2003. All other noninterest expense
for the fourth quarter of 2003 increased $104 million compared with the fourth
quarter of 2002 as higher pension, stock option, sales-based incentive
compensation and marketing expenses and the impact of continued investments in
PNC's businesses more than offset a $34 million benefit from the 2003 efficiency
initiative.
         Noninterest expense totaled $3.476 billion for full year 2003 compared
with $3.227 billion for 2002. Noninterest expense in 2003 included $120 million
of DOJ-related expenses, $36 million related to the adoption of FIN 46R and a
$25 million benefit from the vehicle leasing settlement. The remaining
noninterest expense base increased 4 percent in the year-over-year comparison,
including a benefit of $100 million from efficiency initiatives in 2003.

CONSOLIDATED BALANCE SHEET REVIEW

Total assets were $68.2 billion at December 31, 2003 compared with $68.7 billion
at September 30, 2003 and $66.4 billion at December 31, 2002. Total assets at
December 31, 2003 and September 30, 2003 included $2.6 billion and $2.9 billion,
respectively, due to the adoption of FIN 46R.

         Average interest-earning assets were $57.1 billion for the fourth
quarter of 2003 compared with $56.3 billion for the third quarter of 2003 and
$53.9 billion for the fourth quarter of 2002. Average interest-earning assets
for the fourth quarter and third quarter of 2003 included $2.3 billion and $2.4
billion, respectively, due to the adoption of FIN 46R. Average interest-earning
assets were $55.2 billion for 2003 compared with $55.3 billion for 2002. Average
interest-earning assets for 2003 included $1.2 billion related to the adoption
of FIN 46R.
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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
Earnings - Page 12


         Average total loans of $34.4 billion for the fourth quarter of 2003
were essentially flat compared with the third quarter of 2003 and declined $1.1
billion compared with the fourth quarter of 2002. Average total loans were $34.7
billion in 2003, down $2.4 billion, or 7 percent, from 2002. The impact of
prepayments of residential mortgages, continued weak commercial loan demand
coupled with strategic commercial loan downsizing and the run-off of vehicle
leases, partially offset by an increase in home equity loans, resulted in the
declines compared with full year 2002.

         Average total deposits were $44.9 billion for the fourth quarter of
2003 compared with $44.6 billion for the third quarter of 2003 and $44.1 billion
for the fourth quarter of 2002. Average total deposits represented 65 percent of
total sources of funds for the fourth quarter of 2003, 65 percent for the third
quarter of 2003 and 67 percent for the fourth quarter of 2002. Average aggregate
interest-bearing demand, money market and demand and other non-interest bearing
deposits were $33.8 billion for the fourth quarter of 2003, $33.5 billion for
the third quarter of 2003, and $31.6 billion for the fourth quarter of 2002. The
increases compared with the prior quarterly periods reflected ongoing client
acquisition and retention efforts.

         Average total deposits were $44.5 billion in 2003 compared with $44.1
billion for 2002 and represented 66 percent of total sources of funds for each
year. Average aggregate interest-bearing demand, money market and demand and
other non-interest bearing deposits grew 7 percent to $33.0 billion for 2003
compared with $30.8 billion for 2002.

         Average borrowed funds were $12.4 billion for the fourth quarter of
2003 compared with $12.1 billion for the third quarter of 2003 and $9.0 billion
for the fourth quarter of 2002. Average borrowed funds for the fourth quarter
and third quarter of 2003 included $2.5 billion and $2.6 billion, respectively,
related to the adoption of FIN 46R. Average borrowed funds for the fourth
quarter and third quarter of 2003 also included $881 million and $848 million,
respectively, due to the adoption of SFAS 150. Average borrowed funds were $10.5
billion for 2003 compared with $10.7 billion for 2002. Average borrowed funds
for 2003 included $1.3 billion and $.4 billion related to the impact of the
adoption of FIN 46R and SFAS 150, respectively.

         In addition to the issuance in December 2003 of the $300 million of
Capital Trust D capital securities, in November 2003 the Corporation issued $600
million of 5.25% Subordinated Notes due November 2015.

         Shareholders' equity totaled $6.6 billion at December 31, 2003, $6.6
billion at September 30, 2003 and $6.9 billion at December 31, 2002. The
regulatory capital ratios at December 31, 2003 are estimated to be 8.2 percent
for Leverage, 9.5 percent for Tier 1 and 13.7 percent for Total Risk-based
Capital. The Consolidated Financial Highlights provide details regarding the
impact of FIN 46R on these ratios.

         Common shares outstanding at December 31, 2003 were 276.8 million.
PNC's current stock repurchase program permits the purchase of up to 35 million
shares of common stock through February 29,

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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
Earnings - Page 13

2004. Under this program, PNC purchased 1.1 million common shares during the
fourth quarter of 2003 at a total cost of $56 million. For full year 2003, 10.8
million shares have been purchased at a total cost of $508 million. The extent
and timing of share repurchases during the remainder of the program will depend
on a number of factors including, among others, market and general economic
conditions, regulatory capital considerations, alternative uses of capital and
the potential impact on PNC's credit rating. A total of 11.1 million common
shares have been repurchased under this program from inception through December
31, 2003.

ASSET QUALITY REVIEW

Overall asset quality improved significantly during 2003. At December 31, 2003,
nonperforming assets totaled $328 million compared with $396 million at
September 30, 2003 and $418 million at December 31, 2002. The reduction in
nonperforming assets at December 31, 2003 compared with September 30, 2003,
reflected a $73 million decrease in commercial nonaccrual loans while the
decline from December 31, 2002 was primarily due to a $70 million reduction in
nonperforming loans held for sale. These decreases more than offset higher
nonaccrual residential mortgage loans in both comparisons. During the fourth
quarter of 2003, management accelerated the timeframe for recognizing
delinquent, well-secured residential mortgage loans as nonperforming, which
resulted in the classification of an additional $15 million of these loans as
nonperforming at December 31, 2003. The ratio of nonperforming assets to total
loans, loans held for sale and foreclosed assets was .92 percent at December 31,
2003 compared with 1.10 percent at September 30, 2003 and 1.13 percent at
December 31, 2002.

         Nonperforming loans were $266 million at December 31, 2003 compared
with $324 million at September 30, 2003 and $309 million at December 31, 2002.
The ratio of nonperforming loans to total loans was .78 percent at December 31,
2003, .94 percent at September 30, 2003, and .87 percent at December 31, 2002.

         At December 31, 2003, nonperforming loans held for sale totaled $27
million compared with $35 million at September 30, 2003 and $97 million at
December 31, 2002. The decline in nonperforming loans held for sale at December
31, 2003 compared with December 31, 2002 reflected both reductions in principal
balances and sales of nonperforming loans during 2003. Nonperforming loans held
for sale are carried at lower of cost or market value and represented 8 percent,
9 percent and 23 percent of total nonperforming assets at December 31, 2003,
September 30, 2003 and December 31, 2002, respectively.

         Foreclosed and other assets totaled $35 million at December 31, 2003
compared with $37 million at September 30, 2003 and $12 million at December 31,
2002. The balance at December 31, 2003 and September 30, 2003 included the
Corporation's repossession of collateral during the second quarter of 2003
related to a single airline industry credit.

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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
Earnings - Page 14


         The provision for credit losses was $34 million for the fourth quarter
of 2003 compared with $50 million for the third quarter of 2003 and $65 million
for the fourth quarter of 2002. The decrease in the fourth quarter 2003
provision compared with the third quarter 2003 was due to an improvement in the
credit quality of the loan portfolio that reflected a decline in nonperforming
loans and a reduction in the level of performing problem credits. The provision
for credit losses for the fourth quarter of 2002 included an addition to
reserves established primarily for a single airline industry credit. The
provision for credit losses was $177 million for full year 2003 and $309 million
for the prior year. The decline in the provision for credit losses compared with
the prior year was primarily due to the overall improvement in the credit
quality of the loan portfolio during 2003.

         The allowance for credit losses was $632 million at December 31, 2003,
and represented 1.85 percent of total loans and 238 percent of nonperforming
loans. The comparable amounts and ratios were $648 million, 1.88 percent and 200
percent, respectively, at September 30, 2003 and $673 million, 1.90 percent and
218 percent, respectively, at December 31, 2002. The allowance for unfunded loan
commitments and letters of credit was $90 million at December 31, 2003 compared
with $89 million at September 30, 2003 and $84 million at December 31, 2002.

         Net charge-offs were $49 million or .57 percent of average loans for
the fourth quarter of 2003. Net charge-offs were $63 million or .73 percent of
average loans for the third quarter of 2003 and were $35 million, or .39 percent
of average loans, for the fourth quarter of 2002. Net charge-offs were $211
million or .61 percent of average loans for full year 2003 compared with $223
million, or .60 percent, for 2002. Net charge-offs for full year 2003 included
$42 million related to a single PNC Business Credit loan to a wholesale
goods/retail customer and $26 million related to a single airline industry
credit for which a substantial reserve had been provided at December 31, 2002.
Net charge-offs for 2002 included two charge-offs totaling $90 million related
to Market Street liquidity facilities.

ASSETS UNDER MANAGEMENT AND ADMINISTRATION
FUND ASSETS AND SHAREHOLDER ACCOUNTS SERVICED

Assets under management were $354 billion at December 31, 2003 compared with
$336 billion at September 30, 2003 and $313 billion at December 31, 2002. Growth
in fixed income assets managed by BlackRock was the primary factor in the
increases from each prior quarter end.

         BlackRock's assets under management were $309 billion at December 31,
2003, $294 billion at September 30, 2003 and $273 billion at December 31, 2002.
Growth in assets under management since September 30, 2003 reflected net
subscriptions of $11 billion and net market appreciation of $4 billion, while
growth since December 31, 2002 was comprised of net subscriptions of $22 billion
and net market appreciation of $14 billion.

         Assets under management at PNC Advisors totaled $53 billion at December
31, 2003, $51 billion at September 30, 2003 and $50 billion at December 31,
2002. The increases in assets under management

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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
Earnings - Page 15


were due to the impact of improved equity markets that more than offset the
impact of net client outflows. Nondiscretionary assets under administration at
PNC Advisors totaled $87 billion at December 31, 2003, compared with $86 billion
and $82 billion at September 30, 2003 and December 31, 2002, respectively.

         At December 31, 2003, PFPC provided accounting/administration services
for $667 billion of pooled investment assets and provided custody services for
$401 billion of pooled investment assets. The comparable amounts were $634
billion and $384 billion, respectively, at September 30, 2003 and $510 billion
and $336 billion, respectively, at December 31, 2002. Increases in both
accounting/administration and custody pooled investment assets at December 31,
2003 compared with the prior periods resulted from new business, asset inflows
from existing business and the upward trend in the equity markets during 2003.
Total assets serviced by PFPC amounted to $1.6 trillion at December 31, 2003,
$1.5 trillion at September 30, 2003 and $1.4 trillion at December 31, 2002.

         PFPC serviced approximately 21 million transfer agency shareholder
accounts at both December 31, 2003 and September 30, 2003 and 26 million at
December 31, 2002. The decline in transfer agency accounts in 2003 was primarily
due to a loss of one large client in the first quarter. Subaccounting
shareholder accounts serviced by PFPC totaled 32 million at December 31, 2003,
29 million at September 30, 2003 and 25 million at December 31, 2002. The
increase in subaccounting shareholder accounts serviced during 2003 resulted
from net new business and growth in existing client accounts.

UNITED NATIONAL BANCORP ACQUISITION

On January 1, 2004, the Corporation completed its acquisition of United National
Bancorp for $681 million in cash and stock. United National shareholders
received an aggregate of $321 million in cash and 6.6 million shares of common
stock valued at $360 million.

CONFERENCE CALL AND SUPPLEMENTARY FINANCIAL INFORMATION

PNC Chairman and Chief Executive Officer, James E. Rohr, and PNC Vice Chairman
and Chief Financial Officer, William S. Demchak, will hold a conference call for
investors at 10:00 a.m. (eastern time) today regarding the topics addressed in
this release and the related financial supplement. Investors should call 5-10
minutes before the start of the conference at 800-990-2718 (domestic) and
706-643-0187 (international). A taped replay of the call will be available for
one week at 800-642-1687 (domestic) and 706-645-9291 (international); enter
conference ID: 4731757.

         In addition, internet access to the call (listen-only) and to PNC's
fourth quarter and full year 2003 earnings release and supplementary financial
information will be available on PNC's website at www.pnc.com under "For
Investors." PNC's fourth quarter and full year 2003 earnings release and the
related financial supplement, which includes significant financial information
that will be discussed on the
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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
Earnings - Page 16


conference call, will be available on PNC's website prior to the beginning of
the conference call. A replay of the webcast will be available on PNC's website
for thirty days.

         The conference call may include a discussion of non-GAAP financial
measures, which is qualified by GAAP reconciliation information included in this
news release or otherwise available on PNC's website under "For Investors." The
conference call may include forward-looking information which, along with the
supplementary financial information and this news release, is subject to the
cautionary statement that follows.

CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION

This news release contains, and other statements that the Corporation may make
may contain, forward-looking statements with respect to the Corporation's
outlook or expectations for earnings, revenues, expenses, capital levels, asset
quality or other future financial or business performance, strategies or
expectations, or the impact of legal, regulatory or supervisory matters on the
Corporation's business operations or performance. Forward-looking statements are
typically identified by words or phrases such as "believe," "feel," "expect,"
"anticipate," "intend," "outlook," "estimate," "forecast," "project,"
"position," "target," "assume," "achievable," "potential," "strategy," "goal,"
"objective," "plan," "aspiration," "outcome," "continue," "remain," "maintain,"
"seek," "strive," "trend," and variations of such words and similar expressions,
or future or conditional verbs such as "will," "would," "should," "could,"
"might," "can," "may," or similar expressions. The Corporation cautions that
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, and the Corporation assumes no duty and does not
undertake to update forward-looking statements. Actual results or future events
could differ, possibly materially, from those anticipated in forward-looking
statements and future results could differ materially from historical
performance.

       In addition to factors previously disclosed in PNC's SEC reports and
those discussed elsewhere in this news release, forward-looking statements are
subject to, among others, the following risks and uncertainties, which could
cause actual results or future events to differ materially from those
anticipated in forward-looking statements or from historical performance:

(1) changes in political, economic or industry conditions, the interest rate
environment or financial and capital markets (including as a result of actions
of the Federal Reserve Board affecting interest rates, money supply or otherwise
reflecting changes in monetary policy), which could affect: (a) credit quality
and the extent of credit losses; (b) the extent of funding of unfunded loan
commitments and letters of credit; (c) allowances for credit losses and unfunded
loan commitments and letters of credit; (d) demand for credit or fee-based
products and services; (e) net interest income; (f) value of assets under
management and assets serviced, of private equity investments, of other debt and
equity investments, of loans held for sale, or of other on-balance sheet and
off-balance sheet assets; or (g) the availability and terms of funding necessary
to meet PNC's liquidity needs;

(2) the impact of legal and regulatory developments (including (a) the
resolution of legal proceedings or regulatory and other governmental inquiries;
(b) increased litigation risk from recent regulatory and other governmental
developments; (c) the regulatory examination process, PNC's failure to satisfy
the requirements of agreements with governmental agencies, and regulators'
future use of supervisory and enforcement tools; and (d) legislative and
regulatory reforms and changes in accounting policies and principles), with the
impact of any such developments possibly affecting the ability of PNC to operate
its businesses, PNC's financial condition or results of operations, or PNC's
reputation, which in turn could have an impact on such matters as business
generation and retention, the ability to attract and retain management,
liquidity and funding;

(3) the impact of changes in the nature or extent of competition;

(4) the introduction, withdrawal, success and timing of business initiatives and
strategies;

(5) customer acceptance of PNC's products and services and their borrowing,
repayment, investment and deposit practices;

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The PNC Financial Services Group, Inc. Reports Fourth Quarter and Full Year 2003
Earnings - Page 17


(6) the impact of changes in the extent of customer or counterparty
delinquencies, bankruptcies or defaults that could affect, among other things,
credit and asset quality risk and the provision for credit losses;

(7) the ability to identify and effectively manage risks inherent in PNC's
business;

(8) how PNC chooses to redeploy available capital, including the extent and
timing of any share repurchases and acquisitions or other investments in PNC
businesses;

(9) the impact, extent and timing of technological changes, the adequacy of
intellectual property protection and costs associated with obtaining rights in
intellectual property claimed by others;

(10) the timing and pricing of any sales of loans or other financial assets held
for sale;

(11) the ability of PNC to obtain desirable levels of insurance and whether or
not insurance coverage for claims by PNC is denied;

(12) relative and absolute investment performance of assets under management;
and

(13) the extent of terrorist activities and international hostilities, increases
or continuations of which may adversely affect the economy and financial and
capital markets generally or PNC specifically.

In addition, PNC's forward-looking statements are also subject to risks and
uncertainties related to the United National Bancorp acquisition and the
expected consequences of the integration of its business into that of PNC,
including the following: (a) the integration of United National's business and
operations into PNC, which will include conversion of UnitedTrust Bank's
different systems and procedures, may take longer than anticipated or be more
costly than anticipated or have unanticipated adverse results relating to PNC's
businesses, including those acquired in the acquisition; (b) the anticipated
cost savings of the acquisition may take longer than expected to be realized,
may not be achieved, or may not be achieved in their entirety; and (c) the
anticipated benefits to PNC are dependent in part on the performance of United
National's business in the future, and there can be no assurance as to actual
future results, which could be impacted by various factors, including the risks
and uncertainties generally related to the performance of PNC's and United
National's business (with respect to United National, see United National's SEC
reports, also accessible on the SEC's website) or due to factors related to the
acquisition of United National and the process of integrating it into PNC. Any
future mergers, acquisitions, restructurings, divestitures or related
transactions will also be subject to similar risks and uncertainties related to
the ability to realize expected cost savings or revenue enhancements or to
implement integration plans.

       The Corporation's SEC reports, accessible on the SEC's website at
www.sec.gov and on PNC's website at www.pnc.com, contain additional information
about the foregoing risks and uncertainties and identify additional factors that
could affect the results anticipated in forward-looking statements or from
historical performance.

         The PNC Financial Services Group, Inc., headquartered in Pittsburgh, is
one of the nation's largest diversified financial services organizations,
providing regional community banking; wholesale banking, including corporate
banking, real estate finance and asset-based lending; wealth management; asset
management and global fund services.

                           [TABULAR MATERIAL FOLLOWS]

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CONSOLIDATED FINANCIAL HIGHLIGHTS

The PNC Financial Services Group, Inc.                                  Page 18




                                                                           For the quarter ended
                                                         -------------------------------------------------------------
Dollars in millions, except per share data                     December 31          September 30          December 31
Unaudited                                                             2003                  2003                 2002
- ----------------------------------------------------------------------------------------------------------------------
                                                                                                      
FINANCIAL PERFORMANCE
Revenue
Net interest income (taxable-equivalent basis) (a)                    $488                  $489                 $527
Noninterest income                                                     861                   825                  766
                                                         -------------------------------------------------------------
Total revenue                                                       $1,349                $1,314               $1,293
                                                         -------------------------------------------------------------

Income from continuing operations                                     $302                  $281                 $278
Discontinued operations                                                                                           (16)
                                                         -------------------------------------------------------------
Income before cumulative effect of accounting change                   302                   281                  262
Cumulative effect of accounting change                                 (28)
                                                         -------------------------------------------------------------
Net income                                                            $274                  $281                 $262
                                                         -------------------------------------------------------------

Diluted earnings (loss) per common share
Continuing operations                                                $1.08                 $1.00                 $.97
Discontinued operations                                                                                          (.05)
                                                         -------------------------------------------------------------
Before cumulative effect of accounting change                         1.08                  1.00                  .92
Cumulative effect of accounting change                                (.10)
                                                         -------------------------------------------------------------
Net income                                                            $.98                 $1.00                 $.92
                                                         =============================================================

Cash dividends declared per common share                              $.50                  $.48                 $.48
- ----------------------------------------------------------------------------------------------------------------------
SELECTED RATIOS
FROM CONTINUING OPERATIONS
Return on
Average common shareholders' equity                                  18.37 %               17.06  %             16.55 %
Average assets                                                        1.73                  1.63                 1.67
Net interest margin                                                   3.38                  3.44                 3.87
Noninterest income to total revenue (c)                                 64                    63                   59
Efficiency (d)                                                          64                    63                   61
FROM NET INCOME
Return on
Average common shareholders' equity (b)                              16.67  %              17.06  %             15.59 %
Average assets (b)                                                    1.57                  1.63                 1.58
Net interest margin                                                   3.38                  3.44                 3.87
Noninterest income to total revenue (c)                                 62                    63                   59
Efficiency (b)(d)                                                       66                    63                   63
========================================================================================================================







                                                                 For the year ended
                                                        ------------------------------------
Dollars in millions, except per share data                   December 31        December 31
Unaudited                                                           2003               2002
- --------------------------------------------------------------------------------------------
                                                                               
FINANCIAL PERFORMANCE
Revenue
Net interest income (taxable-equivalent basis) (a)                $2,006             $2,210
Noninterest income                                                 3,257              3,197
                                                        ------------------------------------
Total revenue                                                     $5,263             $5,407
                                                        ------------------------------------

Income from continuing operations                                 $1,029             $1,200
Discontinued operations                                                                 (16)
                                                        ------------------------------------
Income before cumulative effect of accounting change               1,029              1,184
Cumulative effect of accounting change                               (28)
                                                        ------------------------------------
Net income                                                        $1,001             $1,184
                                                        ------------------------------------

Diluted earnings (loss) per common share
Continuing operations                                              $3.65              $4.20
Discontinued operations                                                                (.05)
                                                        ------------------------------------
Before cumulative effect of accounting change                       3.65               4.15
Cumulative effect of accounting change                              (.10)
                                                        ------------------------------------
Net income                                                         $3.55              $4.15
                                                        ------------------------------------

Cash dividends declared per common share                           $1.94              $1.92
- --------------------------------------------------------------------------------------------
SELECTED RATIOS
FROM CONTINUING OPERATIONS
Return on
Average common shareholders' equity                                15.48 %            19.08 %
Average assets                                                      1.53               1.80
Net interest margin                                                 3.64               3.99
Noninterest income to total revenue (c)                               62                 59
Efficiency (d)                                                        66                 60
FROM NET INCOME
Return on
Average common shareholders' equity (b)                            15.06 %            18.83 %
Average assets (b)                                                  1.49               1.78
Net interest margin                                                 3.64               3.99
Noninterest income to total revenue (c)                               62                 59
Efficiency (b)(d)                                                     67                 60
- --------------------------------------------------------------------------------------------



Certain prior period amounts included in these Consolidated Financial Highlights
have been reclassified to conform to the current period presentation.
Consolidated financial results for the three months ended September 30, 2003
have been restated to reflect the de-consolidation of certain variable interest
entities in accordance with the Financial Accounting Standards Board's Financial
Interpretation No. 46 (Revised 2003) ("FIN 46R"). These entities had been
consolidated under the Corporation's early adoption of FIN 46 in PNC's
consolidated financial statements as of and for the three months ended September
30, 2003.

(a)  The interest income earned on certain assets is completely or partially
     exempt from federal income tax. As such, these tax-exempt instruments
     typically yield lower returns than a taxable investment. In order to
     provide accurate comparisons of yields and margins for all earning assets,
     the interest income earned on tax-exempt assets has been increased to make
     them fully equivalent to other taxable interest income investments. A
     reconciliation of net interest income as reported in the Consolidated
     Statement of Income to net interest income on a taxable-equivalent basis
     follows (in millions):




                                                   For the quarter ended                          For the year ended
                                      -----------------------------------------------------  ------------------------------
                                          December 31       September 30       December 31     December 31     December 31
                                                 2003               2003              2002            2003            2002
                                      ----------------   ----------------   ---------------  --------------   -------------
                                                                                                     
     Net interest income, GAAP basis             $485               $487              $524          $1,996          $2,197
     Taxable-equivalent adjustment                  3                  2                 3              10              13
                                      ----------------   ----------------   ---------------  --------------   -------------
     Net interest income, taxable-
       equivalent basis                          $488               $489              $527          $2,006          $2,210
                                      ================   ================   ===============  ==============   =============



(b)  Ratios as adjusted for the second quarter 2003 DOJ-related expenses are
     provided in the following table. See "Agreement with Department of Justice"
     in the Financial Review section of the Corporation's Quarterly Report on
     Form 10-Q for the quarter ended June 30, 2003. These expenses represent
     matters which management believes are not indicative of the Corporation's
     legal and regulatory affairs arising out of the operation of its business
     in the ordinary course.




                                                                       For the year ended
                                                                        December 31, 2003
                                                                      -------------------
                                                                   
     Return on average common shareholders' equity, GAAP basis                    15.06 %
     Adjustment for DOJ-related expenses                                           1.31
                                                                      -----------------
     Return on average common shareholders' equity, as adjusted                   16.37
                                                                      =================

     Return on average assets, GAAP basis                                          1.49 %
     Adjustment for DOJ-related expenses                                            .13
                                                                      -----------------
     Return on average assets, as adjusted                                         1.62
                                                                      =================

     Efficiency ratio, GAAP basis                                                    67 %
     Adjustment for DOJ-related expenses                                             (3)
                                                                      -----------------
     Efficiency ratio, as adjusted                                                   64
                                                                      =================



(c)  Computed as total noninterest income divided by the sum of net interest
     income and noninterest income. For the year ended December 31, 2002, the
     ratio previously reported had been computed using taxable-equivalent net
     interest income. The ratio for that period has been restated to conform to
     the current period presentation.

(d)  The efficiency ratio for all periods presented is computed as noninterest
     expense divided by the sum of net interest income and noninterest income.
     For the year ended December 31, 2002, the efficiency ratio previously
     reported had been computed by excluding amortization expense and
     distributions on capital securities from the calculation and had used
     taxable-equivalent net interest income. The efficiency ratio for that
     period has been restated to conform to the current period presentation.


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CONSOLIDATED FINANCIAL HIGHLIGHTS

The PNC Financial Services Group, Inc.                                  Page 19






                                                               Fourth Quarter 2003                Third Quarter 2003
                                                           -------------------------------  -----------------------------

                                                                                    Fully                          Fully
                                                                                  diluted                        diluted
Dollars in millions, except per share data                   Pretax        Net   earnings    Pretax       Net   earnings
Unaudited                                                    Impact     Income  per share    Impact    Income  per share
                                                         ---------------------------------  -----------------------------
                                                                                             
RECONCILIATION OF QUARTERLY
GAAP EARNINGS TO NORMALIZED
EARNINGS (a)

Quarterly results as reported on a GAAP basis                             $274       $.98                $281      $1.00
Normalization adjustments:
    Loss from discontinued operations
    Cumulative effect of accounting change (b)                              28        .10
                                                                    ----------------------          ---------------------
             Reported results excluding above items                        302       1.08                 281       1.00
    Legal and consulting fees related to regulatory
     compliance and certain legal proceedings (c)                $1                              $1
   Gains on loans held for sale, net of valuation
     adjustments (d)                                            (16)       (10)                 (23)      (15)
   Vehicle leasing settlement (e)                               (25)       (16)
   Equity management losses (f)                                                                   4         3
   Net securities gains (h)                                                                      (4)       (3)
   Net litigation costs - PNC Advisors (i)
   Litigation settlement - Washington Mutual (j)
- --------------------------------------------------------------------------------------------------------------------------
       Total other normalization adjustments                               (26)      (.09)                (15)      (.05)
- --------------------------------------------------------------------------------------------------------------------------
Quarterly results as adjusted to reflect normalized
  earnings                                                                $276      $ .99                $266      $ .95
==========================================================================================================================







                                                              Fourth Quarter 2002
                                                          ----------------------------

                                                                                Fully
                                                                              diluted
Dollars in millions, except per share data                 Pretax       Net  earnings
Unaudited                                                  Impact    Income per share
                                                         -----------------------------
                                                                   
RECONCILIATION OF QUARTERLY
GAAP EARNINGS TO NORMALIZED
EARNINGS (A)

Quarterly results as reported on a GAAP basis                          $262     $ .92
Normalization adjustments:
    Loss from discontinued operations                                    16       .05
    Cumulative effect of accounting change (b)
                                                                  --------------------
             Reported results excluding above items                     278       .97
    Legal and consulting fees related to regulatory
     compliance and certain legal proceedings (c)             $10         6
   Gains on loans held for sale, net of valuation
     adjustments (d)                                          (52)      (34)
   Vehicle leasing settlement (e)
   Equity management losses (f)                                14         9
   Net securities gains (h)
   Net litigation costs - PNC Advisors (i)                     10         6
   Litigation settlement - Washington Mutual (j)              (15)      (10)
- --------------------------------------------------------------------------------------
       Total other normalization adjustments                            (23)     (.08)
- --------------------------------------------------------------------------------------
Quarterly results as adjusted to reflect normalized
  earnings                                                             $255     $ .89
======================================================================================







                                                                          2003                           2002
                                                           -------------------------------  -----------------------------

                                                                                    Fully                          Fully
                                                                                  diluted                        diluted
Dollars in millions, except per share data                   Pretax        Net   earnings    Pretax       Net   earnings
Unaudited                                                    Impact     Income  per share    Impact    Income  per share
                                                           -------------------------------  -----------------------------
                                                                                             
RECONCILIATION OF ANNUAL
GAAP EARNINGS TO NORMALIZED
EARNINGS (a)

Annual results as reported on a GAAP basis                              $1,001      $3.55              $1,184      $4.15
Normalization adjustments:
   Costs incurred under Department of Justice
     ("DOJ") agreement (k)                                     $120         87        .31
   Cumulative effect of accounting change (b)                               28        .10
   Loss from discontinued operations                                                                       16        .05
                                                           --------------------------------------------------------------
             Reported results excluding above items                      1,116       3.96               1,200       4.20
   Liquidation of PAGIC entities (l)
     Net securities gains (h)                                   (25)       (16)
     Liquidation costs                                           29         19
                                                           --------------------
       Liquidation of PAGIC entities, net                         4          3
   Vehicle leasing settlement (e)                               (25)       (16)
   Legal and consulting fees related to regulatory
     compliance and certain legal proceedings (c)                 4          3                  $30        19
   Facilities charge (l)                                         23         15
   Gains on loans held for sale, net of valuation
     adjustments (d)                                            (69)       (45)                (147)      (95)
   Equity management losses (f)                                  25         16                   51        33
   Net securities gains (h)                                     (31)       (21)                 (54)      (35)
   Additional provision for credit losses (g)                                                    90        59
   PFPC restructuring reserve reduction (m)                                                      (19)      (11)
   Net litigation costs - PNC Advisors (i)                                                       10         6
- -------------------------------------------------------------------------------------------------------------------------
       Total other normalization adjustments                               (45)      (.16)                (24)      (.08)
- -------------------------------------------------------------------------------------------------------------------------
Annual results as adjusted to reflect normalized earnings               $1,071     $ 3.80              $1,176     $ 4.12
=========================================================================================================================



See explanatory notes to these reconciliations of quarterly and annual GAAP
earnings to normalized earnings on pages 20 and 21.

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     CONSOLIDATED FINANCIAL HIGHLIGHTS

     The PNC Financial Services Group, Inc.                             Page 20

     Explanatory notes to reconciliations of quarterly and annual GAAP earnings
     to normalized earnings:

(a)  This reconciliation is provided so that users of the Corporation's
     financial information (shareholders, investor analysts, regulators and
     others) have a basis for comparison of the Corporation's results for the
     periods presented that supplements results as reported in accordance with
     generally accepted accounting principles ("GAAP"). Management believes that
     this additional information is useful and relevant as it identifies and
     summarizes the impact of significant items included in reported GAAP
     earnings that management believes are not a reflection of the Corporation's
     core operating performance for the periods presented.

(b)  Represents the Corporation's adoption, effective October 1, 2003, of
     Derivatives Implementation Group Statement 133 Implementation Issue No.
     B36, "Embedded Derivatives: Modified Coinsurance Arrangements and Debt
     Instruments That Incorporate Credit Risk Exposures That Are Unrelated or
     Only Partially Related to the Creditworthiness of the Obligor under Those
     Instruments." The impact of the adoption of DIG B36 was required to be
     reported as the cumulative effect of a change in accounting principle.
     Accordingly, this amount has been removed from the computation of
     normalized earnings.

(c)  These expenses represent matters not arising out of the operation of the
     Corporation's business in the ordinary course. Therefore, management
     believes these expenses are not indicative of the Corporation's legal and
     regulatory affairs related to its business operations and has removed such
     expenses from the computation of normalized earnings.

(d)  The Corporation has realized gains, net of valuation adjustments, on
     disposition of loans designated as held for sale as part of its
     institutional lending repositioning initiative. These assets and underlying
     customer relationships are not included in the Corporation's ongoing
     business strategy for Wholesale Banking. Accordingly, these amounts have
     been removed from the computation of normalized earnings.

(e)  In the fourth quarter of 2001, PNC incurred a pretax charge of $135 million
     for costs to exit the vehicle leasing business and additions to reserves
     related to insured residual value exposures in that business. During the
     fourth quarter of 2003, the Corporation reached a $25 million settlement
     with insurance carriers regarding certain residual value claims for which a
     reserve had been provided in 2001. Management believes this settlement is
     not indicative of ongoing business operations and, therefore, the amount
     has been removed from the computation of normalized earnings.

(f)  Private equity investment activities have been conducted at a more moderate
     pace than in prior years and emphasis is being placed on the management of
     capital for other investors, for which the Corporation generates fee
     income. Fair value adjustments on the existing portfolio of investments are
     not managed outcomes from these activities. Accordingly, valuation losses
     have been removed from the computation of normalized earnings.

(g)  Additional provision amounts were principally related to Market Street
     Funding Corporation exposures in the first and third quarters of 2002.
     Management believes that these exposures were not indicative of the
     Corporation's ongoing credit risk. Accordingly, the additional provision
     recognized in connection with these items has been removed from the
     computation of normalized earnings.

(h)  Certain net gains or losses from the disposition of securities designated
     as available for sale are a recurring component of the Corporation's
     balance sheet and interest rate risk management process. Based on the
     current portfolio and interest rate environment, management believes that
     net securities gains in excess of $15 million on a quarterly basis may not
     be sustainable, indicative of future performance, or reflect the
     Corporation's business strategy. Accordingly, this excess amount has been
     removed from the computation of normalized earnings.

     Total net securities gains were $15 million for the fourth quarter of 2003
     (consisting of $16 million in Regional Community Banking and $(1) million
     in BlackRock). Total net securities gains were $19 million for the third
     quarter of 2003 (consisting of $17 million in Regional Community Banking
     and $1 million each in BlackRock and "Other"). Total net securities gains
     were $1 million for the fourth quarter of 2002 (consisting of $(2) million
     for BlackRock and $3 million in "Other").


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     CONSOLIDATED FINANCIAL HIGHLIGHTS

     The PNC Financial Services Group, Inc.                             Page 21

     Explanatory notes to reconciliations of quarterly and annual GAAP earnings
     to normalized earnings (continued):

     Total net securities gains were $116 million for full year 2003 (consisting
     of $93 million in Regional Community Banking; $25 million in Corporate
     Banking; $2 million in BlackRock and $(4) million in "Other"). Total net
     securities gains were $89 million for 2002 (consisting of $84 million in
     Regional Community Banking and $5 million in "Other").

(i)  See "PNC Advisors" in the Review of Businesses portion of the Financial
     Review section of the Corporation's Annual Report on Form 10-K for the year
     ended December 31, 2002 for information regarding this arbitration award
     cost. Management believes these expenses are not indicative of the
     Corporation's legal affairs related to its business operations,
     particularly as the events underlying the claims all occurred prior to
     PNC's acquisition of the related business. Accordingly, this amount has
     been removed from the computation of normalized earnings.

(j)  In January 2003, the Corporation and Washington Mutual, FA agreed to
     settlement of all issues in dispute between them in connection with the
     sale of the Corporation's residential mortgage banking business in January
     2001. The net loss on settlement, reported in the Corporation's fourth
     quarter 2002 results in discontinued operations, was substantially offset
     by the reversal in the fourth quarter of 2002 of reserves available for
     this matter. These reserves had been charged to expense in continuing
     operations during 2002. Management believes the impact of the reversal of
     these expenses is not indicative of the Corporation's legal affairs related
     to its business operations. Accordingly, this amount has been removed from
     the computation of normalized earnings.

(k)  See "Agreement with Department of Justice" in the Consolidated Income
     Statement Review portion of the Financial Review section of the
     Corporation's Quarterly Report on Form 10-Q for the three months ended June
     30, 2003, for further information. These expenses represent matters not
     arising out of the operation of the Corporation's business in the ordinary
     course. Therefore, management believes these expenses are not indicative of
     the Corporation's legal and regulatory affairs related to its business
     operations and has removed such expenses from the computation of normalized
     earnings.

(l)  The costs related to liquidation of the PAGIC entities and the facilities
     charge related to leased properties were each recognized during the first
     quarter of 2003. Management does not believe that either of these
     transactions is representative of the ongoing operating activities of the
     Corporation and each has been removed from the computation of normalized
     earnings.

(m)  In the fourth quarter of 2001, PFPC incurred a $36 million charge largely
     related to a plan to consolidate certain facilities as a follow-up to the
     integration of an acquisition. During 2002, the facilities strategy was
     modified and certain originally contemplated relocations were no longer
     expected to occur. Accordingly, during the third quarter of 2002, PFPC
     recognized a $19 million reduction in the 2001 facilities consolidation
     reserve. Management believes these activities are not indicative of the
     ongoing business operations of PFPC and, therefore, the reduction to
     reserves has been removed from the computation of normalized earnings.


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CONSOLIDATED FINANCIAL HIGHLIGHTS

The PNC Financial Services Group, Inc.                                  Page 22




                                                       For the quarter ended                           For the year ended
                                          ----------------------------------------------------  --------------------------------
In millions                                December 31       September 30      December 31          December 31     December 31
Unaudited                                         2003             2003               2002                 2003            2002
- ----------------------------------------------------------------------------------------------  --------------------------------
                                                                                                           
BUSINESS EARNINGS (LOSS)
Banking Businesses
  Regional Community Banking                      $159             $138               $152                 $608            $697
  Wholesale Banking
     Corporate Banking                              61               37                 33                  173             150
     PNC Real Estate Finance                        28               34                 23                  102              90
     PNC Business Credit                             5                6                 28                   31              40
- ----------------------------------------------------------------------------------------------  --------------------------------
       Total wholesale banking                      94               77                 84                  306             280
  PNC Advisors                                      16               20                 13                   72              97
- ----------------------------------------------------------------------------------------------  --------------------------------
       Total banking businesses                    269              235                249                  986           1,074
- ----------------------------------------------------------------------------------------------  --------------------------------
  BlackRock                                         41               40                 34                  155             133
  PFPC                                              18               16                  8                   61              65
- ----------------------------------------------------------------------------------------------  --------------------------------
      Total asset management and
         processing businesses                      59               56                 42                  216             198
- ----------------------------------------------------------------------------------------------  --------------------------------
      Total business earnings                      328              291                291                1,202           1,272
Intercompany Eliminations                           (1)              (2)                (2)                  (6)             (9)
Other (a)                                          (25)              (8)               (11)                (167)            (63)
- ----------------------------------------------------------------------------------------------  --------------------------------
Results from continuing operations                 302              281                278                1,029           1,200
Discontinued operations                                                                (16)                                 (16)
- ----------------------------------------------------------------------------------------------  --------------------------------
Results before cumulative effect of
  accounting change                                302              281                262                1,029           1,184
Cumulative effect of accounting change             (28)                                                     (28)
- ----------------------------------------------------------------------------------------------  --------------------------------
      Total consolidated                          $274             $281               $262               $1,001          $1,184
==============================================================================================  ================================






Dollars in millions, except per share data                         December 31     September 30        December 31
Unaudited                                                                 2003             2003               2002
- ----------------------------------------------------------------------------------------------------------------------
                                                                                                 
BALANCE SHEET DATA (b)
Assets                                                                 $68,168          $68,703            $66,377
Earning assets                                                          56,361           56,290             54,833
Loans, net of unearned income                                           34,080           34,514             35,450
Allowance for credit losses                                                632              648                673
Securities                                                              15,690           14,907             13,763
Loans held for sale                                                      1,400            1,531              1,607
Deposits                                                                45,241           45,523             44,982
Borrowed funds                                                          11,453           11,554              9,116
Allowance for unfunded loan commitments and
   letters of credit                                                        90               89                 84
Shareholders' equity                                                     6,645            6,638              6,859
Common shareholders' equity                                              6,636            6,629              6,849
Book value per common share                                              23.97            23.93              24.03
Loans to deposits                                                           75 %             76 %               79 %

ASSETS UNDER MANAGEMENT  (billions)                                       $354             $336               $313

FUND ASSETS SERVICED  (billions)
Accounting/administration net assets                                      $667             $634               $510
Custody assets                                                            $401             $384               $336

CAPITAL RATIOS (b)
Tier 1 Risk-based (c)                                                      9.5 %            8.7 %              8.8 %
Total Risk-based (c)                                                      13.7             12.0               12.5
Leverage (c)                                                               8.2              7.6                8.1
Shareholders' equity to assets                                            9.75             9.66              10.33
Common shareholders' equity to assets                                     9.73             9.65              10.32

ASSET QUALITY RATIOS
Nonperforming assets to total loans,
   loans held for sale and foreclosed assets                               .92 %           1.10 %             1.13 %
Nonperforming loans to total loans                                         .78              .94                .87
Net charge-offs to average loans (for the three months ended)              .57              .73                .39
Allowance for credit losses to total loans                                1.85             1.88               1.90
Allowance for credit losses to nonperforming loans                         238              200                218
======================================================================================================================



(a)  "Other" for the year ended December 31, 2003, includes pretax expenses of
     $120 million ($87 million after taxes) in connection with the DOJ
     agreement. In addition, "Other" for the year ended December 31, 2003
     includes a pretax charge of $23 million ($15 million after taxes) related
     to leased facilities.
(b)  See "Impact of FIN 46R" on pages 23 through 27 of these Consolidated
     Financial Highlights regarding the impact of the adoption of FIN 46R on
     this information.
(c)  Estimated for December 31, 2003.


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CONSOLIDATED FINANCIAL HIGHLIGHTS
The PNC Financial Services Group, Inc.
IMPACT OF FIN 46R                                                       Page 23
CONSOLIDATING STATEMENT OF INCOME (Unaudited)




                                                                      Impact of FIN 46R
                                                                  --------------------------
                                                      Results                     Affordable
For the year ended December 31, 2003              before adoption     Market       Housing     Results as
Dollars in millions                                 of FIN 46R        Street     Partnerships   reported
- ---------------------------------------------------------------------------------------------------------
                                                                                     
INTEREST INCOME
Loans and fees on loans                                $1,941           $(1)                      $1,940
Securities                                                579                                        579
Loans held for sale                                        48                                         48
Purchased customer receivables                                           22                           22
Other                                                     121                           $2           123
- ---------------------------------------------------------------------------------------------------------
   Total interest income                                2,689            21              2         2,712
- ---------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits                                                  457                                        457
Borrowed funds                                            210                                        210
Capital securities                                         29                                         29
Commercial paper                                                         14                           14
Liabilities of certain variable
  interest entities                                                                      6             6
- ---------------------------------------------------------------------------------------------------------
   Total interest expense                                 696            14              6           716
- ---------------------------------------------------------------------------------------------------------
      Net interest income                               1,993             7             (4)        1,996
Provision for credit losses                               177                                        177
- ---------------------------------------------------------------------------------------------------------
   Net interest income less
     provision for credit losses                        1,816             7             (4)        1,819
- ---------------------------------------------------------------------------------------------------------
NONINTEREST INCOME
Asset management                                          861                                        861
Fund servicing                                            762                                        762
Service charges on deposits                               239                                        239
Brokerage                                                 184                                        184
Consumer services                                         251                                        251
Corporate services                                        490            (5)                         485
Equity management                                         (25)                                       (25)
Net securities gains                                      116                                        116
Investments held by certain variable
  interest entities                                                                     19            19
Other                                                     365                                        365
- ---------------------------------------------------------------------------------------------------------
   Total noninterest income                             3,243            (5)            19         3,257
- ---------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Staff                                                   1,804                                      1,804
Net occupancy                                             282                                        282
Equipment                                                 276                                        276
Marketing                                                  64                                         64
Distributions on capital securities                        28                                         28
Other                                                     986             2             34         1,022
- ---------------------------------------------------------------------------------------------------------
   Total noninterest expense                            3,440             2             34         3,476
- ---------------------------------------------------------------------------------------------------------
Income before minority and noncontrolling
  interests in income of consolidated entities
  and income taxes                                      1,619                          (19)        1,600
Minority and noncontrolling interests in
  income of consolidated entities                          51                          (19)           32
Income taxes                                              539                                        539
- ---------------------------------------------------------------------------------------------------------
Income before cumulative effect of
  accounting change                                     1,029                                      1,029
Cumulative effect of accounting change (less
  applicable income tax benefit of $14)                   (28)                                       (28)
- ---------------------------------------------------------------------------------------------------------
         Net income                                    $1,001                                     $1,001
- ---------------------------------------------------------------------------------------------------------
Net interest margin                                      3.71 %        (.06) %        (.01) %       3.64  %






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CONSOLIDATED FINANCIAL HIGHLIGHTS
The PNC Financial Services Group, Inc.
IMPACT OF FIN 46R                                                       Page 24
CONSOLIDATING STATEMENT OF INCOME (Unaudited)




                                                                       Impact of FIN 46R
                                                                   ----------------------------
                                                       Results                     Affordable
For the three months ended December 31, 2003       before adoption   Market          Housing      Results as
Dollars in millions                                  of FIN 46R      Street        Partnerships    reported
- -------------------------------------------------------------------------------------------------------------
                                                                                     
INTEREST INCOME
Loans and fees on loans                                  $462           $(1)                         $461
Securities                                                140                                         140
Loans held for sale                                        13                                          13
Purchased customer receivables                                           11                            11
Other                                                      34                           $1             35
- -------------------------------------------------------------------------------------------------------------
   Total interest income                                  649            10              1            660
- -------------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits                                                  102                                         102
Borrowed funds                                             48                                          48
Capital securities                                         15                                          15
Commercial paper                                                          7                             7
Liabilities of certain variable
  interest entities                                                                      3              3
- -------------------------------------------------------------------------------------------------------------
   Total interest expense                                 165             7              3            175
- -------------------------------------------------------------------------------------------------------------
      Net interest income                                 484             3             (2)           485
Provision for credit losses                                34                                          34
- -------------------------------------------------------------------------------------------------------------
   Net interest income less
     provision for credit losses                          450             3             (2)           451
- -------------------------------------------------------------------------------------------------------------
NONINTEREST INCOME
Asset management                                          229                                         229
Fund servicing                                            193                                         193
Service charges on deposits                                62                                          62
Brokerage                                                  51                                          51
Consumer services                                          63                                          63
Corporate services                                        125            (2)                          123
Net securities gains                                       15                                          15
Investments held by certain variable
  interest entities                                                                     10             10
Other                                                     115                                         115
- -------------------------------------------------------------------------------------------------------------
   Total noninterest income                               853            (2)            10            861
- -------------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Staff                                                     472                                         472
Net occupancy                                              65                                          65
Equipment                                                  71                                          71
Marketing                                                  15                                          15
Other                                                     218             1             16            235
- -------------------------------------------------------------------------------------------------------------
   Total noninterest expense                              841             1             16            858
- -------------------------------------------------------------------------------------------------------------
Income before minority and noncontrolling
  interests in income of consolidated entities
  and income taxes                                        462                           (8)           454
Minority and noncontrolling interests in
  income of consolidated entities                          14                           (8)             6
Income taxes                                              146                                         146
- -------------------------------------------------------------------------------------------------------------
Income before cumulative effect of
  accounting change                                       302                                         302
Cumulative effect of accounting change (less
  applicable income tax benefit of $14)                   (28)                                        (28)
- -------------------------------------------------------------------------------------------------------------
         Net income                                      $274                                        $274
- -------------------------------------------------------------------------------------------------------------
Net interest margin                                      3.52 %        (.13) %        (.01) %        3.38 %





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CONSOLIDATED FINANCIAL HIGHLIGHTS
The PNC Financial Services Group, Inc.
IMPACT OF FIN 46R                                                       Page 25
CONSOLIDATING STATEMENT OF INCOME (Unaudited)




                                                                         Impact of FIN 46R
                                                                      ------------------------
                                                      Results                       Affordable
For the three months ended September 30, 2003     before adoption     Market         Housing     Results as
Dollars in millions                                 of FIN 46R         Street      Partnerships   reported
- -----------------------------------------------------------------------------------------------------------
                                                                                     
INTEREST INCOME
Loans and fees on loans                                 $477                                          $477
Securities                                               141                                           141
Loans held for sale                                        8                                             8
Purchased customer receivables                                            $11                           11
Other                                                     30                              $1            31
- -----------------------------------------------------------------------------------------------------------
   Total interest income                                 656               11              1           668
- -----------------------------------------------------------------------------------------------------------
INTEREST EXPENSE
Deposits                                                 106                                           106
Borrowed funds                                            51                                            51
Capital securities                                        14                                            14
Commercial paper                                                            7                            7
Liabilities of certain variable
  interest entities                                                                        3             3
- -----------------------------------------------------------------------------------------------------------
   Total interest expense                                171                7              3           181
- -----------------------------------------------------------------------------------------------------------
      Net interest income                                485                4             (2)          487
Provision for credit losses                               50                                            50
- -----------------------------------------------------------------------------------------------------------
   Net interest income less
     provision for credit losses                         435                4             (2)          437
- -----------------------------------------------------------------------------------------------------------
NONINTEREST INCOME
Asset management                                         216                                           216
Fund servicing                                           188                                           188
Service charges on deposits                               60                                            60
Brokerage                                                 46                                            46
Consumer services                                         65                                            65
Corporate services                                       135               (3)                         132
Equity management                                         (4)                                           (4)
Net securities gains                                      19                                            19
Investments held by certain variable
  interest entities                                                                        9             9
Other                                                     94                                            94
- -----------------------------------------------------------------------------------------------------------
   Total noninterest income                              819               (3)             9           825
- -----------------------------------------------------------------------------------------------------------
NONINTEREST EXPENSE
Staff                                                    448                                           448
Net occupancy                                             63                                            63
Equipment                                                 67                                            67
Marketing                                                 16                                            16
Other                                                    214                1             18           233
- -----------------------------------------------------------------------------------------------------------
   Total noninterest expense                             808                1             18           827
- -----------------------------------------------------------------------------------------------------------
Income before minority and noncontrolling
  interests in income of consolidated entities
  and income taxes                                       446                             (11)          435
Minority and noncontrolling interests in
  income of consolidated entities                         13                             (11)            2
Income taxes                                             152                                           152
- -----------------------------------------------------------------------------------------------------------
         Net income                                     $281                                          $281
- -----------------------------------------------------------------------------------------------------------
Net interest margin                                     3.57 %           (.12)%         (.01)%        3.44 %




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CONSOLIDATED FINANCIAL HIGHLIGHTS
The PNC Financial Services Group, Inc.
IMPACT OF FIN 46R                                                       Page 26
CONSOLIDATING BALANCE SHEET  (Unaudited)




                                                                          Impact of FIN 46R
                                                                --------------------------------------------
                                                    Results                        Affordable     Trust
At December 31,  2003                            before adoption      Market        Housing    Preferred    Results as
In millions, except par value                      of FIN 46R          Street     Partnerships Securities    reported
- --------------------------------------------------------------------------------------------------------------------------
                                                                                             
ASSETS
Cash and due from banks                               $2,965                             $3                     $2,968
Federal funds sold                                        50                                                        50
Other short-term investments                           2,546                                                     2,546
Loans held for sale                                    1,400                                                     1,400
Securities                                            15,688               $2                                   15,690
Loans, net of unearned income of $1,009               34,176              (80)          (16)                    34,080
   Allowance for credit losses                          (633)               1                                     (632)
- --------------------------------------------------------------------------------------------------------------------------
     Net loans                                        33,543              (79)          (16)                    33,448
Goodwill                                               2,390                                                     2,390
Other intangible assets                                  317                                                       317
Purchased customer receivables                                          2,223                                    2,223
Other                                                  6,651                            449          $36         7,136
- --------------------------------------------------------------------------------------------------------------------------
         Total assets                                $65,550           $2,146          $436          $36       $68,168
==========================================================================================================================
LIABILITIES
Deposits
   Noninterest-bearing                               $11,505                                                   $11,505
   Interest-bearing                                   33,816             $(80)                                  33,736
- --------------------------------------------------------------------------------------------------------------------------
      Total deposits                                  45,321             $(80)                                  45,241
Borrowed funds
   Federal funds purchased                               169                                                       169
   Repurchase agreements                               1,081                                                     1,081
   Bank notes and senior debt                          2,823                                                     2,823
   Federal Home Loan Bank borrowings                   1,115                                                     1,115
   Subordinated debt                                   2,545                                      $1,184         3,729
   Mandatorily redeemable capital
      securities of subsidiary trusts                  1,148                                      (1,148)
   Commercial paper                                                     2,226                                    2,226
   Liabilities of certain variable
     interest entities                                                                 $144                        144
   Other borrowed funds                                  166                                                       166
- --------------------------------------------------------------------------------------------------------------------------
      Total borrowed funds                             9,047            2,226           144           36        11,453
Allowance for unfunded loan
  commitments and letters of credit                       90                                                        90
Accrued expenses                                       2,275                                                     2,275
Other                                                  1,926                             76                      2,002
- --------------------------------------------------------------------------------------------------------------------------
   Total liabilities                                  58,659            2,146           220           36        61,061
- --------------------------------------------------------------------------------------------------------------------------
Minority and noncontrolling interests in
  consolidated entities                                  246                            216                        462
SHAREHOLDERS' EQUITY
Common stock - $5 par value
  Authorized 800 shares, issued 353 shares             1,764                                                     1,764
Capital surplus                                        1,108                                                     1,108
Retained earnings                                      7,642                                                     7,642
Deferred benefit expense                                 (29)                                                      (29)
Accumulated other comprehensive income                    60                                                        60
Common stock held in treasury
  at cost:  76 shares                                 (3,900)                                                   (3,900)
- --------------------------------------------------------------------------------------------------------------------------
   Total shareholders' equity                          6,645                                                     6,645
- --------------------------------------------------------------------------------------------------------------------------
         Total liabilities, minority and
           noncontrolling interests and
           shareholders' equity                      $65,550           $2,146          $436          $36       $68,168
==========================================================================================================================
CAPITAL AND OTHER RATIOS
Tier 1 Risk-based (a) (b)                                9.6 %                          (.1)%                      9.5 %
Total Risk-based (a) (b)                                13.8                            (.1)                      13.7
Leverage (a)                                             8.6              (.3)%         (.1)                       8.2
Shareholders' equity to total assets                   10.14             (.32)         (.06)        (.01)%        9.75
Common shareholders' equity to total assets            10.12             (.32)         (.06)        (.01)         9.73
Return on average assets                                1.64             (.06)         (.01)                      1.57
- --------------------------------------------------------------------------------------------------------------------------



(a)  Estimated for December 31, 2003.
(b)  Regulatory capital relief has been granted through March 31, 2004 with
     respect to consolidation of the Market Street conduit.


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CONSOLIDATED FINANCIAL HIGHLIGHTS
The PNC Financial Services Group, Inc.
IMPACT OF FIN 46R                                                       Page 27
CONSOLIDATING BALANCE SHEET  (Unaudited)




                                                                       Impact of FIN 46R
                                                                ------------------------------
                                                    Results                        Affordable
At September 30,  2003                           before adoption      Market        Housing    Results as
In millions, except par value                      of FIN 46R          Street     Partnerships  reported
- ------------------------------------------------------------------------------------------------------------
                                                                                      
ASSETS
Cash and due from banks                               $3,147                             $3        $3,150
Other short-term investments                           2,533                                        2,533
Loans held for sale                                    1,531                                        1,531
Securities                                            14,905               $2                      14,907
Loans, net of unearned income of $1,037               34,600              (86)                     34,514
   Allowance for credit losses                          (649)               1                        (648)
- ------------------------------------------------------------------------------------------------------------
     Net loans                                        33,951              (85)                     33,866
Goodwill                                               2,385                                        2,385
Other intangible assets                                  311                                          311
Purchased customer receivables                                          2,481                       2,481
Other                                                  7,073               (1)          467         7,539
- ------------------------------------------------------------------------------------------------------------
         Total assets                                $65,836           $2,397          $470       $68,703
============================================================================================================
LIABILITIES
Deposits
   Noninterest-bearing                               $12,118                                      $12,118
   Interest-bearing                                   33,491             $(86)                     33,405
- ------------------------------------------------------------------------------------------------------------
      Total deposits                                  45,609              (86)                     45,523
Borrowed funds
   Federal funds purchased                               881                                          881
   Repurchase agreements                               1,048                                        1,048
   Bank notes and senior debt                          2,839                                        2,839
   Federal Home Loan Bank borrowings                   1,127                                        1,127
   Subordinated debt                                   1,980                                        1,980
   Mandatorily redeemable capital
     securities of subsidiary trusts                     848                                          848
   Commercial paper                                                     2,483                       2,483
   Liabilities of certain variable
     interest entities                                                                 $160           160
   Other borrowed funds                                  188                                          188
- ------------------------------------------------------------------------------------------------------------
      Total borrowed funds                             8,911            2,483           160        11,554
Allowance for unfunded loan
  commitments and letters of credit                       89                                           89
Accrued expenses                                       2,226                                        2,226
Other                                                  2,117                             76         2,193
- ------------------------------------------------------------------------------------------------------------
   Total liabilities                                  58,952            2,397           236        61,585
- ------------------------------------------------------------------------------------------------------------
Minority and noncontrolling interests in
  consolidated entities                                  246                            234           480
SHAREHOLDERS' EQUITY
Common stock - $5 par value
  Authorized 800 shares, issued 353 shares             1,764                                        1,764
Capital surplus                                        1,110                                        1,110
Retained earnings                                      7,507                                        7,507
Deferred benefit expense                                 (24)                                         (24)
Accumulated other comprehensive income                   148                                          148
Common stock held in treasury
  at cost:  76 shares                                 (3,867)                                      (3,867)
- ------------------------------------------------------------------------------------------------------------
   Total shareholders' equity                          6,638                                        6,638
- ------------------------------------------------------------------------------------------------------------
         Total liabilities, minority and
           noncontrolling interests and
           shareholders' equity                      $65,836           $2,397          $470       $68,703
============================================================================================================
CAPITAL AND OTHER RATIOS
Tier 1 Risk-based (a)                                    8.8 %                          (.1)%         8.7 %
Total Risk-based (a)                                    12.1                            (.1)         12.0
Leverage                                                 8.0              (.3)%         (.1)          7.6
Shareholders' equity to total assets                   10.08             (.35)         (.07)         9.66
Common shareholders' equity to total assets            10.07             (.35)         (.07)         9.65
Return on average assets                                1.69             (.06)                       1.63
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(a)  Regulatory capital relief has been granted through March 31, 2004 with
     respect to consolidation of the Market Street conduit.