First Half 2010 Net Income of $1.5 Billion Doubles First Half 2009

Capital Further Strengthened by PNC Global Investment Servicing Sale
July 1

PR Newswire -- July 22, 2010

PITTSBURGH, July 22 /PRNewswire-FirstCall/ -- The PNC Financial Services Group,
Inc. (NYSE: PNC) today reported net income of $803 million, or $1.47 per diluted
common share, for the second quarter of 2010 compared with net income of $671
million, or $.66 per diluted common share, for the first quarter of 2010 and net
income of $207 million, or $.14 per diluted common share, for the second quarter
of 2009. The company earned net income of $1.5 billion, or $2.15 per diluted
common share, for the first six months of 2010 compared with $737 million, or
$1.16 per diluted common share, for the first six months of 2009.

"PNC reported strong second quarter financial results reflecting revenue growth,
well-managed expenses and stabilizing credit quality," said James E. Rohr,
chairman and chief executive officer. "We successfully completed the National
City conversion encompassing 6 million customers and 1,300 branches in nine
states, providing further growth opportunities throughout our expanded
footprint. The quality of our balance sheet has served us well and our robust
earnings added to equity. As we look to the future, PNC's vision, values and
execution capabilities position us to successfully compete despite the
regulatory changes and economic challenges facing the industry."

Second quarter 2010 net income per diluted common share would have been $1.60
excluding $.13 per diluted common share for integration costs. First quarter
2010 net income per diluted common share would have been $1.31 excluding $.50
per diluted common share related to the redemption of TARP preferred shares and
$.15 per diluted common share for integration costs. Second quarter 2009 net
income per diluted common share would have been $.34 excluding $.20 per diluted
common share for integration costs. The Consolidated Financial Highlights
accompanying this news release include reconciliations of reported to adjusted
results including those referred to in this news release.

Income Statement Highlights

-- Strong earnings in the quarter were driven by higher revenue, lower
expenses and stabilizing credit quality. Compared with first quarter
2010, pretax pre-provision earnings increased 16 percent to $1.9 billion
and were $1.1 billion higher than the provision for credit losses of $.8
billion.
-- Total revenue increased 4 percent to $3.9 billion compared with the
linked quarter and was derived from well-diversified sources. Net
interest income increased 2 percent due to lower funding costs and
noninterest income increased 7 percent primarily from net gains on asset
sales.
-- Noninterest expense declined by 5 percent to $2.0 billion compared with
the first quarter of 2010 reflecting disciplined expense management,
additional acquisition-related cost savings and the reversal of certain
accrued liabilities.

Balance Sheet Highlights

-- PNC remains committed to responsible lending to support economic growth.
Loans and commitments originated and renewed totaled approximately $40
billion in the second quarter and $72 billion for the first half of
2010. At June 30, 2010, loans totaled $154 billion and decreased $2.9
billion during the quarter primarily due to loan repayments,
dispositions and net charge-offs that exceeded customer loan demand.
-- The company reduced the average rate paid on deposits by 10 basis points
to .71 percent in second quarter 2010 from .81 percent in the first
quarter primarily due to repricing certificates of deposit and other
time deposits which decreased $3.1 billion or 6 percent during the
second quarter. Total deposits declined by $3.7 billion during the
quarter to $179 billion at June 30, 2010.
-- PNC remained core funded with a loan to deposit ratio of 86 percent at
June 30, 2010 providing a strong bank liquidity position to support
growth.
-- PNC's estimated Tier 1 common capital ratio grew to 8.4 percent at June
30, 2010 and on a pro forma basis would have been an estimated 9.0
percent based on the sale of PNC Global Investment Servicing on July 1,
2010.

Credit Quality Highlights

-- Credit quality showed signs of stabilization during the second quarter
of 2010. Nonperforming assets declined by $465 million in the quarter to
$6.1 billion as of June 30, 2010. Accruing loans past due improved
during the quarter. The allowance for loan and lease losses was $5.3
billion, or 3.46 percent of total loans and 101 percent of nonperforming
loans, as of June 30, 2010. Net charge-offs to average loans of 2.18
percent compared favorably to industry ratios.
-- Sales of residential mortgage and brokered home equity loans from the
distressed assets portfolio with unpaid principal balances of
approximately $2.0 billion at June 30, 2010 are expected to close in the
third quarter. As a result, PNC recorded an additional provision for
credit losses of $109 million and net charge-offs of $75 million in
second quarter 2010.

Integration Highlights

-- PNC successfully completed the National City conversion of 16 million
accounts, 6 million customers and 1,300 branches in nine states in one
of the largest branch conversions in U.S. banking history. The company
achieved acquisition cost savings of $1.6 billion on an annualized basis
in the second quarter of 2010, well ahead of the original target amount
and schedule, and established a new goal of $1.8 billion by the end of
2010.

CONSOLIDATED REVENUE REVIEW

Total revenue remained strong at $3.9 billion for the second quarter of 2010, an
increase of 4 percent from the first quarter of 2010 and 3 percent compared with
the second quarter of 2009. Net interest income of $2.4 billion increased 2
percent compared with the first quarter of 2010 and 11 percent compared with the
second quarter of 2009. The net interest margin increased to 4.35 percent for
the second quarter of 2010 compared with 4.24 percent for first quarter 2010 and
3.60 percent in the second quarter of 2009. The increases in net interest income
and the margin compared with both the first quarter of 2010 and the second
quarter of 2009 primarily resulted from the impact of lower deposit and
borrowing costs somewhat offset by lower yields on the company's investment
securities portfolio. The interest rate paid on deposits declined by 10 basis
points to .71 percent for the second quarter of 2010 compared with .81 percent
for the first quarter of 2010 and decreased from 1.25 percent in the second
quarter of 2009. The decline in the rate paid on deposits largely resulted from
the retention and repricing at lower market rates of relationship-based
certificates of deposit along with the planned run off of maturing
nonrelationship certificates of deposit and other time deposits.

Noninterest income increased to $1.5 billion for the second quarter of 2010
compared with $1.4 billion for the first quarter of 2010 and declined from $1.6
billion in the second quarter of 2009. Residential mortgage fees increased $32
million, or 22 percent, over first quarter 2010 as a result of higher loan
servicing and loan sales revenue. Consumer service fees increased $19 million,
or 6 percent, on a linked quarter basis due to growth in transaction
volume-related fees. Service charges on deposits increased $9 million, or 5
percent, compared with first quarter 2010 primarily due to seasonally higher
volume. Asset management fees declined by $16 million, or 6 percent, from the
first quarter due to the lower equity markets. Corporate service fees declined
$7 million, or 3 percent, compared with the linked quarter largely as a result
of lower revenue associated with commercial mortgage special servicing partially
offset by higher merger and acquisition advisory fees. Other noninterest income
of $217 million in the second quarter of 2010 decreased $23 million from the
linked quarter and included lower customer-related trading results. The net
effect to second quarter 2010 noninterest income of net securities gains and
other-than-temporary impairment losses on securities was a $53 million gain
compared with a net loss of $26 million in the first quarter of 2010. Net
securities gains during the quarter primarily resulted from sales of agency
residential mortgage-backed and U.S. Treasury securities. The decline in
noninterest income compared with the second quarter of 2009 was primarily due to
lower residential mortgage loan sales revenue and customer-related trading
income somewhat offset by improved results on private equity and alternative
investments.

CONSOLIDATED EXPENSE REVIEW

Noninterest expense for the second quarter of 2010 was $2.0 billion, a reduction
of 5 percent compared with the first quarter of 2010 and 20 percent compared
with the second quarter of 2009. The linked quarter decline was mainly due to
the impact of higher acquisition-related cost savings and the reversal of
certain accrued liabilities, with $73 million associated with a franchise tax
settlement and $47 million associated with an indemnification charge for certain
Visa litigation. Annualized acquisition cost savings reached $1.6 billion in the
second quarter of 2010, higher and earlier than the original goal of $1.2
billion. Integration costs were $100 million for the second quarter of 2010,
$113 million for the first quarter of 2010 and $125 million for the second
quarter of 2009. Noninterest expense decreased $490 million compared with the
year ago quarter primarily due to the impact of higher acquisition cost savings,
a second quarter 2009 special FDIC assessment of $133 million and the accrued
liability reversals.

CONSOLIDATED BALANCE SHEET REVIEW

Total assets were $262 billion at June 30, 2010 compared with $265 billion at
March 31, 2010 and $280 billion at June 30, 2009. The decrease in both
comparisons was primarily attributable to lower loans as payoffs, dispositions
and net charge-offs outpaced customer loan demand and to lower investment
securities in the linked quarter comparison.

Average loans of $155 billion for the quarter decreased $3.9 billion, or 2
percent, compared with the first quarter and $14.0 billion, or 8 percent,
compared with the second quarter of 2009. The decrease compared with the linked
quarter was primarily due to continued soft customer demand and loan repayments
reflected in the declines of 7 percent in commercial real estate loans, 4
percent in residential mortgage loans and 2 percent in commercial loans. The
decrease in average loans compared with second quarter 2009 was primarily due to
reduced loan demand, paydowns and net charge-offs. PNC is committed to providing
credit and liquidity to qualified borrowers. Total loan originations and new
commitments and renewals were approximately $40 billion in the second quarter of
2010, $32 billion in the first quarter of 2010 and $29 billion for the second
quarter of 2009. Included in these amounts were originations for first mortgages
of $2.3 billion in the second quarter of 2010, $2.0 billion in the first quarter
of 2010 and $6.4 billion in the second quarter of 2009.

Loans held for sale averaged $2.6 billion in the second quarter of 2010 compared
with $2.5 billion in the first quarter of 2010 and $4.8 billion in the second
quarter of 2009. The decrease from second quarter 2009 was primarily due to
lower residential mortgage loan originations.

Average investment securities for the second quarter of 2010 were $55.4 billion,
a decrease of $1.2 billion, or 2 percent, compared with the first quarter of
2010 and an increase of $4.5 billion, or 9 percent, compared with the second
quarter of 2009. The linked quarter decrease was due to prepayments and paydowns
along with net sales of agency residential mortgage-backed securities. The
increase in securities over second quarter 2009 reflected net investments of a
portion of available liquidity in lower risk assets, primarily U.S. Treasury
securities. The June 30, 2010 available for sale investment securities balance
included a net unrealized pretax loss of $.7 billion representing the difference
between fair value and amortized cost compared with net unrealized pretax losses
of $1.6 billion at March 31, 2010 and $3.8 billion at June 30, 2009. The
improvement in the net unrealized pretax loss compared with both prior periods
was due to lower market interest rates and improved liquidity in non-agency
residential and commercial mortgage-backed securities markets.

Average deposits of $182 billion declined $.8 billion compared with the first
quarter of 2010 and $10.4 billion, or 5 percent, compared with the second
quarter of 2009. In both comparisons, average deposits decreased due to the
continued reduction of high-cost and primarily nonrelationship certificates of
deposit and other time deposits, partially offset by growth in average
transaction deposits. This was consistent with PNC's overall deposit strategy
focused on growing demand and other transaction deposits as a lower-cost funding
source and the cornerstone product of customer relationships. At June 30, 2010,
transaction deposits decreased by $.7 billion compared with March 31, 2010 due
to non-retail interest-bearing demand and money market deposit balance declines
at quarter end related to corporate client activity.

Average borrowed funds for the second quarter of 2010 were $41.2 billion, a
decrease of $1.1 billion, or 3 percent, compared with the first quarter of 2010
and $5.0 billion, or 11 percent, compared with the second quarter of 2009. The
declines in both comparisons were due to maturities of Federal Home Loan Bank
borrowings partially offset by an increase in other borrowed funds in the 2009
quarter comparison primarily as a result of the consolidation of Market Street
Funding and credit card trusts as of January 1, 2010. In May 2010, PNC issued
$.5 billion of senior notes.

PNC further enhanced the quality of its capital during the second quarter of
2010 through earnings retention and an improvement in accumulated other
comprehensive loss primarily related to the securities portfolio. Common
shareholders' equity grew to $27.7 billion at June 30, 2010 compared with $26.5
billion at March 31, 2010 and $19.4 billion at June 30, 2009. The year-over-year
increase in common equity reflected retention of earnings and $3.45 billion of
new common equity issued in first quarter 2010. Also in the first quarter of
2010, PNC redeemed all of the $7.6 billion of preferred shares issued to the
U.S. Treasury under the TARP Capital Purchase Program.

The Tier 1 common capital ratio increased to an estimated 8.4 percent at June
30, 2010 from 7.9 percent at March 31, 2010 and 5.3 percent at June 30, 2009.
The Tier 1 risk-based capital ratio increased to an estimated 10.8 percent from
10.3 percent at March 31, 2010 and 10.5 percent at June 30, 2009. Increases in
both ratios were largely attributable to retained earnings and, in the
comparison with a year ago, the common equity issuance. The TARP redemption
impacted the Tier 1 risk-based capital ratio comparison with the prior year
second quarter. On a pro forma basis giving effect to the July 1, 2010 sale of
PNC Global Investment Servicing, PNC's Tier 1 common capital ratio would have
been an estimated 9.0 percent and the Tier 1 risk-based capital ratio would have
been an estimated 11.4 percent at June 30, 2010. The PNC board of directors
recently declared a quarterly common stock cash dividend of 10 cents per share
payable on July 24, 2010.

ASSET QUALITY REVIEW

Credit quality showed further signs of stabilization during the second quarter
of 2010. Nonperforming assets declined by $465 million, or 7 percent, to $6.1
billion as of June 30, 2010 from $6.5 billion at March 31, 2010. Nonperforming
assets totaled $4.7 billion at June 30, 2009. Nonperforming assets to total
assets were 2.32 percent at June 30, 2010 compared with 2.46 percent at March
31, 2010 and 1.66 percent at June 30, 2009. Included in nonperforming assets
were troubled debt restructured loans of $490 million at June 30, 2010, $385
million at March 31, 2010 and $127 million at June 30, 2009. The net increase in
troubled debt restructurings reflected continued efforts to work with borrowers
experiencing financial difficulties. Troubled debt restructurings that have been
returned to performing status totaled $341 million at June 30, 2010 compared
with $217 million at March 31, 2010.

Delinquency measures improved. Accruing loans past due 90 days or more declined
to $647 million at June 30, 2010 from $846 million at March 31, 2010 and $1.0
billion at June 30, 2009, the second consecutive quarterly decline. Accruing
loans past due 30 to 89 days also fell to $1.8 billion at June 30, 2010 from
$2.5 billion at March 31, 2010 and $2.2 billion at June 30, 2009.

The provision for credit losses was $823 million for the second quarter of 2010
compared with $751 million for the first quarter of 2010 and $1.1 billion in the
second quarter of 2009. The increase compared with the linked quarter related to
a $109 million provision associated with the third quarter sales of residential
mortgage and brokered home equity loans from the distressed assets portfolio
with unpaid principal balances of approximately $2.0 billion and carrying value
of approximately $1.0 billion. Net charge-offs for the second quarter of 2010
were $840 million, or 2.18 percent of average loans on an annualized basis,
compared with $691 million, or 1.77 percent, for the first quarter of 2010 and
$795 million, or 1.89 percent, for the second quarter of 2009. Net charge-offs
for the second quarter of 2010 included $75 million related to the third quarter
loan sales from the distressed assets portfolio.

The allowance for loan and lease losses was $5.3 billion at June 30 and March
31, 2010 and $4.6 billion at June 30, 2009. The allowance for loan and lease
losses to total loans increased to 3.46 percent at June 30, 2010 compared with
3.38 percent at March 31, 2010 and 2.77 percent at June 30, 2009. The allowance
to nonperforming loans was 101 percent at June 30, 2010, 92 percent at March 31,
2010 and 110 percent at June 30, 2009.

BUSINESS SEGMENT RESULTS

Retail Banking

Retail Banking earned $85 million for the second quarter of 2010 compared with
$24 million for the first quarter of 2010 and $61 million for second quarter
2009. The increase in earnings over the linked quarter was primarily due to
lower credit costs. Earnings increased from the prior year second quarter as a
result of lower credit costs and well-managed expenses partially offset by lower
interest credits assigned to deposits and a decline in fees. Retail Banking
continued to maintain its focus on growing customers and deposits, customer and
employee satisfaction, investing in the business for future growth, as well as
effective expense management during this period of market and economic
uncertainty. The deposit strategy of Retail Banking is to remain disciplined on
pricing while targeting specific products and markets for growth.

Retail Banking overview:

-- Success in implementing Retail Banking's deposit strategy resulted in
growth in average transaction deposits of $1.8 billion, or 2 percent,
compared with the linked quarter and $2.8 billion, or 4 percent,
compared with the prior year second quarter. Excluding approximately
$1.9 billion of average transaction deposits from second quarter 2009
balances related to branch divestitures, average transaction deposits
increased $4.7 billion, or 6 percent, over the prior year second
quarter. The growth in transaction deposits was more than offset by
planned run off of higher rate certificates of deposit net of successful
retention of customer relationships. A continued decline in certificates
of deposit is expected over the remainder of 2010.
-- Retail Banking continued to focus on expanding and deepening customer
relationships. Checking relationships grew by 20,000 during the second
quarter of 2010, better than expected in consideration of the impact of
branch conversion activities in many markets. In addition, active online
bill payment customers grew by 5 percent during the second quarter.
-- Average loans decreased $.5 billion, or 1 percent, over the first
quarter of 2010 and increased $2.2 billion, or 4 percent, compared with
the year-ago quarter. Both comparisons reflected lower commercial, home
equity and residential mortgage loans in second quarter 2010. The
increase over the second quarter of 2009 resulted from consolidation of
the securitized credit card portfolio and higher education loans.
-- Net interest income for the second quarter of 2010 increased by $16
million, or 2 percent, compared with the linked quarter and decreased by
$16 million, or 2 percent, compared with the second quarter of 2009. The
increase over the first quarter was driven by higher transaction
deposits and education loans partially offset by lower home equity,
commercial and residential mortgage loans. The decline from the prior
year quarter resulted from lower interest credits assigned to deposits
partially offset by a benefit from the consolidation of the securitized
credit card portfolio and higher transaction deposits and education
loans.
-- Noninterest income increased $20 million, or 4 percent, compared with
the linked quarter and declined $56 million, or 10 percent, from the
second quarter of 2009. The linked quarter comparison was positively
impacted by seasonal increases in service charges on deposits and growth
in transaction volume-related fees. In the year-over-year comparison,
fees declined due to the consolidation of the securitized credit card
portfolio, decreases in service charges on deposits primarily related to
reduced overdraft charges, lower brokerage fees and the impact of branch
divestitures somewhat offset by growth in transaction volume-related
fees. New rules set forth in Regulation E related to overdraft charges
are expected to negatively impact Retail Banking revenue in the second
half of 2010 by approximately $145 million.
-- Noninterest expense for the second quarter increased $19 million, or 2
percent, over the first quarter and declined $71 million, or 7 percent,
from the prior year second quarter. The linked quarter increase resulted
from higher volume-related costs tied to revenue increases and
seasonally higher expenses. In the year-over-year quarter comparison,
expenses were well-managed as continued investments in distribution
channels were more than offset by acquisition cost savings and the
required branch divestitures.
-- Provision for credit losses was $280 million for the second quarter of
2010 compared with $339 million in the first quarter and $304 million in
the second quarter of 2009. Credit quality showed signs of stabilization
during the second quarter of 2010.
-- Retail Banking had 2,458 branches and an ATM network of 6,539 machines
at June 30, 2010. During the second quarter of 2010, PNC opened 8
traditional branches and 13 in-store branches, consolidated 24 branches
and had a net increase of 72 ATMs. The decrease in branches was
primarily driven by acquisition-related branch consolidations.

Corporate & Institutional Banking

Corporate & Institutional Banking earned $443 million in the second quarter of
2010 compared with $360 million in the first quarter of 2010 and $107 million in
the second quarter of 2009. Earnings increased in both comparisons primarily due
to a lower provision for credit losses and higher net interest income partially
offset by a decline in noninterest income.

Corporate & Institutional Banking overview:

-- Net interest income for the second quarter of 2010 of $923 million
increased $46 million compared with the first quarter of 2010 and $37
million compared with the second quarter of 2009. Both comparisons were
driven by improved loan spreads and an increase in average deposits
which more than offset reduced loan balances.
-- Corporate service fees were $237 million in the second quarter of 2010
compared with $242 million in the first quarter of 2010 and $236 million
in the second quarter of 2009. The linked quarter comparison reflected
higher merger and acquisition advisory and syndication fees. The
comparison was also impacted by first quarter 2010 commercial mortgage
special servicing ancillary income.
-- Other noninterest income was $59 million in the second quarter of 2010
compared to $129 million in the first quarter of 2010 and $161 million
in the second quarter of 2009. The decrease in both comparisons was
primarily due to valuations associated with commercial mortgage loans
held for sale, net of hedges, and client-related trading positions and
to the sale of Red Capital Group, a noncore business, during second
quarter 2010. First quarter 2010 included higher syndication
underwriting revenue.
-- Noninterest expense was $421 million in the second quarter of 2010
compared with $445 million in the first quarter of 2010 and $467 million
in the second quarter of 2009. The decline in both comparisons resulted
in part from the sale of Red Capital Group. Second quarter 2009 included
net losses on the disposition of repossessed assets and lease residual
impairment charges.
-- Provision for credit losses was $97 million in the second quarter of
2010 compared with $236 million in the first quarter of 2010 and $649
million in the second quarter of 2009. The decrease in both comparisons
was due to improvements in portfolio credit quality along with lower
loan balances and loan commitment levels. Net charge-offs for the second
quarter of 2010 were $243 million compared with $271 million in first
quarter 2010 and $322 million in the second quarter of 2009. Net
charge-offs and nonperforming assets within the portfolio stabilized.
-- Average loans were $64 billion for the second quarter of 2010 compared
with $66 billion in the first quarter of 2010 and $74 billion in the
second quarter of 2009. The decline in loans in both comparisons was
largely due to planned exits of certain client relationships combined
with continued soft utilization rates.
-- Average deposits were $43 billion in the second quarter of 2010, an
increase of $.8 billion, or 2 percent, in the linked quarter and an
increase of $7.2 billion, or 20 percent, compared with the second
quarter of 2009. Customers continued to move balances into
noninterest-bearing demand deposits from off-balance sheet sweep
products.
-- The commercial mortgage servicing portfolio was $265 billion at June 30,
2010 compared with $282 billion at March 31, 2010 and $269 billion at
June 30, 2009. The decreases were driven by the sale of Red Capital
Group partially offset by continued growth in the agency and
conventional servicing portfolios.

Asset Management Group

Asset Management Group earned $29 million in the second quarter of 2010 compared
with $39 million in the first quarter of 2010 and $8 million in the second
quarter of 2009. Assets under administration were $199 billion as of June 30,
2010. The earnings decline from the linked quarter was driven by lower asset
management fees resulting from lower equity markets, a seasonal decline in tax
service fees and a higher provision for credit losses. The increase in earnings
from the prior year quarter was attributable to a lower provision for credit
losses, lower expenses and growth in asset management fees. During the quarter,
the business successfully executed its final National City trust system
conversion.

Asset Management Group overview:

-- Assets under administration decreased to $199 billion at June 30, 2010
compared with $209 billion at March 31, 2010 and $222 billion at June
30, 2009. Discretionary assets under management were $99 billion at June
30, 2010 compared with $105 billion at March 31, 2010 and $98 billion at
June 30, 2009. The decline in the linked quarter comparison was driven
by the lower equity markets. In the year-over-year comparison,
discretionary assets increased from client growth and equity market
improvement while nondiscretionary assets declined from exits of noncore
products and relationships.
-- Noninterest income of $154 million for the quarter decreased $10
million, or 6 percent, compared with the linked quarter and increased $3
million, or 2 percent, compared with the second quarter of 2009. The
linked quarter decline was due to the lower equity market values and a
seasonal decline in tax services revenue. The year-over-year increase
resulted from client growth and higher equity market values partially
offset by revenue declines attributable to exited noncore businesses.
-- Net interest income of $66 million in the second quarter was relatively
consistent with first quarter 2010 and $9 million, or 12 percent, below
the second quarter of 2009. The decrease was primarily due to lower
yields on loans.
-- Noninterest expense of $160 million in the second quarter of 2010
increased $3 million, or 2 percent, compared with the linked quarter and
decreased $7 million, or 4 percent, from the year-ago quarter. The
year-over-year decline was attributable to acquisition-related cost
savings and disciplined expense management.
-- Provision for credit losses was $14 million for the second quarter of
2010 compared with $9 million for the first quarter of 2010 and $46
million for the second quarter of 2009. Net charge-offs were $16 million
for the second quarter compared with $4 million in the linked quarter
and $21 million in the second quarter of 2009. The allowance for loan
losses as a percent of total loans was consistent with the linked
quarter.
-- Average deposits for the quarter increased $71 million, or 1 percent,
compared with the linked quarter and increased $177 million, or 3
percent, over the prior year second quarter. Money market and demand
deposit growth was substantially offset by the strategic runoff of
higher rate certificates of deposit in both comparisons. Average loan
balances decreased $44 million, or 1 percent, compared with the linked
quarter and $347 million, or 5 percent, from the prior year second
quarter as home equity loan growth was more than offset by declines in
commercial and residential mortgage loans.

Residential Mortgage Banking

Residential Mortgage Banking earned $92 million in the second quarter of 2010
compared with $82 million in the first quarter of 2010 and $92 million in the
second quarter of 2009. Earnings increased over the linked quarter due to higher
net hedging gains on mortgage servicing rights and increased loan sales revenue.

Residential Mortgage Banking overview:

-- Total loan originations were $2.3 billion for the second quarter of 2010
compared with $2.0 billion in the first quarter of 2010 and $6.4 billion
in the second quarter of 2009. The linked quarter increase primarily
resulted from seasonal factors. The decline compared with the second
quarter of last year was driven by significantly higher refinance volume
in the 2009 quarter. Loans continued to be primarily originated through
direct channels under FNMA, FHLMC and FHA/VA agency guidelines.
-- Residential mortgage loans serviced for others totaled $137 billion at
June 30, 2010 compared with $141 billion at March 31, 2010 and $161
billion at June 30, 2009. Payoffs continued to outpace new direct loan
origination volume during the quarter. The decline from a year earlier
also reflected the sale of $7.9 billion of servicing in the fourth
quarter of 2009.
-- Noninterest income was $182 million in the second quarter of 2010
compared with $154 million in first quarter 2010 and $245 million in the
second quarter of 2009. The linked quarter increase reflected higher net
hedging gains on mortgage servicing rights and increased loan sales
revenue. The year-over-year quarter decline was due to reduced loan
sales revenue reflective of strong loan origination refinance volume in
the second quarter of 2009.
-- Net interest income was $73 million in the second quarter of 2010
compared with $80 million in the first quarter of 2010 and $87 million
in the second quarter of 2009. The decrease compared with the first
quarter was primarily driven by reduced interest earned on escrow
deposit balances. The decline from the second quarter of 2009 resulted
from lower escrow deposit balances and residential mortgage loans held
for sale.
-- Noninterest expense declined to $109 million in the second quarter of
2010 compared with $121 million in the first quarter and $176 million in
the second quarter of 2009. The linked quarter decline reflected reduced
foreclosure expense. The year-over-year quarter decline in loan
origination volume drove the reduction in expenses.
-- The fair value of mortgage servicing rights was $1.0 billion at June 30,
2010 compared with $1.3 billion at March 31, 2010 and $1.5 billion at
June 30, 2009. The decline in fair value in both comparisons was
primarily attributable to lower mortgage rates at June 30, 2010 and a
smaller mortgage servicing portfolio in the prior year quarter
comparison.

Distressed Assets Portfolio

Distressed Assets Portfolio segment had a loss of $86 million for the second
quarter of 2010 compared with earnings of $72 million in the first quarter of
2010 and earnings of $155 million for the second quarter of 2009. Earnings
decreased in both comparisons due to a higher provision for credit losses.

Distressed Assets Portfolio overview:

-- Average loans were $18 billion in the second and first quarters of 2010
and $22 billion in the second quarter of 2009. The decline from second
quarter 2009 was due to paydowns, net charge-offs and portfolio
management activities including loan sales.
-- Net interest income was $339 million for the second quarter of 2010
compared with $338 million for the first quarter of 2010 and $295
million for the second quarter of 2009. The increase in the
year-over-year comparison was driven by higher accretion on impaired
loans partially offset by a decrease in average loans.
-- Noninterest income was a loss of $1 million for both 2010 quarters and
revenue of $39 million in the second quarter of 2009. Second quarter
2009 included gains related to early termination of certain credit
insurance and third party servicing contracts.
-- Noninterest expense for the second quarter of 2010 was $65 million
compared with $58 million in the first quarter of 2010 and $55 million
in the second quarter of 2009. The increase in both comparisons was
primarily due to costs related to the third quarter loan sales and
higher other real estate owned appraisal costs.
-- Sales of residential mortgage and brokered home equity loans, the
majority of which were seriously delinquent, are expected to close in
the third quarter. The loans had unpaid principal balances of
approximately $2.0 billion and carrying value of approximately $1.0
billion at June 30, 2010.
-- The provision for credit losses was $404 million in the second quarter
of 2010 compared with $165 million in the first quarter of 2010 and $30
million in second quarter of 2009. The second quarter 2010 provision
included $109 million related to the third quarter loan sales and
additional provisions for other seriously delinquent loans.
-- Net charge-offs increased to $264 million for the second quarter of 2010
compared with $111 million for the first quarter of 2010 and $197
million for the second quarter of 2009. The increase included $75
million related to the third quarter loan sale transactions.
-- Loans in this segment require special servicing and management oversight
given current loan performance and market conditions. Accordingly, the
business activities of this segment are focused on maximizing value
within a defined risk profile. This includes selling assets when the
terms and conditions are appropriate to reduce future credit and
servicing costs.

Other, including BlackRock

The "Other, including BlackRock" category, for the purposes of this release,
includes earnings and gains or losses related to PNC's equity interest in
BlackRock, asset and liability management activities including net securities
gains or losses, other than temporary impairment of debt securities and certain
trading activities, equity management activities, integration costs, exited
businesses, differences between business segment performance reporting and
financial statement reporting under generally accepted accounting principles,
corporate overhead and intercompany eliminations. Results of operations for PNC
Global Investment Servicing are presented as income from discontinued
operations, net of taxes, and the business is not a reportable business segment.
Business segment results are presented on the basis of continuing operations
before noncontrolling interests.

PNC recorded earnings of $218 million in "Other, including BlackRock" for the
second quarter of 2010 compared with earnings of $71 million for the first
quarter of 2010 and a loss of $228 million for the second quarter of 2009. The
increase in second quarter 2010 earnings in both comparisons reflected the
reversal of certain accrued liabilities, higher positive impact of net
securities gains and other-than-temporary impairment losses on securities,
higher results from private equity and alternative investments and lower
integration costs. The second quarter 2009 loss included the impact of a $133
million special FDIC assessment.

CONFERENCE CALL AND SUPPLEMENTAL FINANCIAL INFORMATION

PNC Chairman and Chief Executive Officer James E. Rohr and Executive Vice
President and Chief Financial Officer Richard J. Johnson will hold a conference
call for investors today at 8:30 a.m. Eastern Time regarding the topics
addressed in this news release and the related financial supplement. Dial-in
numbers for the conference call are (800) 990-2718 or (706) 643-0187
(international), conference ID 85428358. The related financial supplement and
presentation slides to accompany the conference call remarks may be found at
www.pnc.com/investorevents. A taped replay of the call will be available for one
week at (800) 642-1687 or (706) 645-9291 (international), conference ID
85428358.

In addition, Internet access to the call (listen only) and to PNC's second
quarter 2010 earnings release, supplemental financial information and
presentation slides will be available at www.pnc.com/investorevents. A replay of
the webcast will be available on PNC's website for 30 days.

The PNC Financial Services Group, Inc. (www.pnc.com) is one of the nation's
largest diversified financial services organizations providing retail and
business banking; residential mortgage banking; specialized services for
corporations and government entities, including corporate banking, real estate
finance and asset-based lending; wealth management and asset management.

Cautionary Statement Regarding Forward-Looking Information

We make statements in this news release and in the conference call regarding
this news release, and we may from time to time make other statements, regarding
our outlook or expectations for earnings, revenues, expenses, capital levels,
liquidity levels, asset quality and/or other matters regarding or affecting PNC
that are forward-looking statements within the meaning of the Private Securities
Litigation Reform Act. Forward-looking statements are typically identified by
words such as "believe," "plan," "expect," "anticipate," "intend," "outlook,"
"estimate," "forecast," "will," "should," "project," "goal" and other similar
words and expressions. Forward-looking statements are subject to numerous
assumptions, risks and uncertainties, which change over time.

Forward-looking statements speak only as of the date they are made. We do not
assume any duty and do not undertake to update our forward-looking statements.
Actual results or future events could differ, possibly materially, from those
that we anticipated in our forward-looking statements, and future results could
differ materially from our historical performance.

Our forward-looking statements are subject to the following principal risks and
uncertainties. We provide greater detail regarding some of these factors in our
2009 Form 10-K and first quarter 2010 Form 10-Q, including in the Risk Factors
and Risk Management sections of those reports, and in our subsequent SEC
filings. Our forward-looking statements may also be subject to other risks and
uncertainties, including those that we may discuss elsewhere in this news
release or in our filings with the SEC, accessible on the SEC's website at
www.sec.gov and on or through our corporate website at www.pnc.com/secfilings.
We have included these web addresses as inactive textual references only.
Information on these websites is not part of this document.

-- Our businesses and financial results are affected by business and
economic conditions, both generally and specifically in the principal
markets in which we operate. In particular, our businesses and financial
results may be impacted by:
o Changes in interest rates and valuations in the debt, equity and other
financial markets.
o Disruptions in the liquidity and other functioning of financial
markets, including such disruptions in the markets for real estate and
other assets commonly securing financial products.
o Actions by the Federal Reserve and other government agencies,
including those that impact money supply and market interest rates.
o Changes in our customers', suppliers' and other counterparties'
performance in general and their creditworthiness in particular.
o A slowing or failure of the moderate economic recovery that began last
year.
o Continued effects of the aftermath of recessionary conditions and the
uneven spread of the positive impacts of the recovery on the economy
in general and our customers in particular, including adverse impact
on loan utilization rates as well as delinquencies, defaults and
customer ability to meet credit obligations.
o Changes in levels of unemployment.
o Changes in customer preferences and behavior, whether as a result of
changing business and economic conditions, climate-related physical
changes or legislative and regulatory initiatives, or other factors.
-- A continuation of turbulence in significant portions of the US and
global financial markets, particularly if it worsens, could impact our
performance, both directly by affecting our revenues and the value of
our assets and liabilities and indirectly by affecting our
counterparties and the economy generally.
-- We are likely to be impacted by the extensive reforms enacted in the
Dodd-Frank Wall Street Reform and Consumer Protection Act. Further, as
much of that Act will require the adoption of implementing regulations
by a number of different regulatory bodies, the precise nature, extent
and timing of many of these reforms and the impact on us is still
uncertain.
-- Financial industry restructuring in the current environment could also
impact our business and financial performance as a result of changes in
the creditworthiness and performance of our counterparties and by
changes in the competitive and regulatory landscape.
-- Our results depend on our ability to manage current elevated levels of
impaired assets.
-- Given current economic and financial market conditions, our
forward-looking financial statements are subject to the risk that these
conditions will be substantially different than we are currently
expecting. These statements are based on our current expectations that
interest rates will remain low in the second half of 2010 and our view
that the moderate economic recovery that began last year will continue
throughout the rest of 2010.
-- Legal and regulatory developments could have an impact on our ability to
operate our businesses or our financial condition or results of
operations or our competitive position or reputation. Reputational
impacts, in turn, could affect matters such as business generation and
retention, our ability to attract and retain management, liquidity, and
funding. These legal and regulatory developments could include:
o Changes resulting from legislative and regulatory responses to the
current economic and financial industry environment.
o Other legislative and regulatory reforms, including broad-based
restructuring of financial industry regulation as well as changes to
laws and regulations involving tax, pension, bankruptcy, consumer
protection, and other aspects of the financial institution industry.
o Unfavorable resolution of legal proceedings or other claims and
regulatory and other governmental investigations or other inquiries.
In addition to matters relating to PNC's business and activities, such
matters may also include proceedings, claims, investigations or
inquiries relating to pre-acquisition business and activities of
acquired companies such as National City.
o The results of the regulatory examination and supervision process,
including our failure to satisfy the requirements of agreements with
governmental agencies.
o Changes in accounting policies and principles.
o Changes resulting from legislative and regulatory initiatives relating
to climate change that have or may have a negative impact on our
customers' demand for or use of our products and services in general
and their creditworthiness in particular.
o Changes to regulations governing bank capital, including as a result
of the so-called "Basel III" initiatives.
-- Our business and operating results are affected by our ability to
identify and effectively manage risks inherent in our businesses,
including, where appropriate, through the effective use of third-party
insurance, derivatives, and capital management techniques, and by our
ability to meet evolving regulatory capital standards.
-- The adequacy of our intellectual property protection, and the extent of
any costs associated with obtaining rights in intellectual property
claimed by others, can impact our business and operating results.
-- Our ability to anticipate and respond to technological changes can have
an impact on our ability to respond to customer needs and to meet
competitive demands.
-- Our ability to implement our business initiatives and strategies could
affect our financial performance over the next several years.
-- Our expansion with our National City acquisition in geographic markets
and into business operations in areas in which we did not have
significant experience or presence prior to 2009 presents greater risks
and uncertainties than were present for us in other recent acquisitions.
-- Competition can have an impact on customer acquisition, growth and
retention, as well as on our credit spreads and product pricing, which
can affect market share, deposits and revenues.
-- Our business and operating results can also be affected by widespread
disasters, terrorist activities or international hostilities, either as
a result of the impact on the economy and capital and other financial
markets generally or on us or on our customers, suppliers or other
counterparties specifically.
-- Also, risks and uncertainties that could affect the results anticipated
in forward-looking statements or from historical performance relating to
our equity interest in BlackRock, Inc. are discussed in more detail in
BlackRock's filings with the SEC, including in the Risk Factors sections
of BlackRock's reports. BlackRock's SEC filings are accessible on the
SEC's website and on or through BlackRock's website at
www.blackrock.com. This material is referenced for informational
purposes only and should not be deemed to constitute a part of this
document.

We grow our business in part by acquiring from time to time other financial
services companies. Acquisitions present us with risks in addition to those
presented by the nature of the business acquired. These include risks and
uncertainties related both to the acquisition transactions themselves and to the
integration of the acquired businesses into PNC after closing.

Acquisitions may be substantially more expensive to complete (including
unanticipated costs incurred in connection with the integration of the acquired
company) and the anticipated benefits (including anticipated cost savings and
strategic gains) may be significantly harder or take longer to achieve than
expected. Acquisitions may involve our entry into new businesses or new
geographic or other markets, and these situations also present risks resulting
from our inexperience in those new areas.

As a regulated financial institution, our pursuit of attractive acquisition
opportunities could be negatively impacted due to regulatory delays or other
regulatory issues. Regulatory and/or legal issues relating to the
pre-acquisition operations of an acquired business may cause reputational harm
to PNC following the acquisition and integration of the acquired business into
ours and may result in additional future costs or regulatory limitations arising
as a result of those issues.

[TABULAR MATERIAL FOLLOWS]

The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)

FINANCIAL RESULTS Three months ended
------------------
Dollars in
millions, except June March June
per share data 30 31 30
2010 2010 2009
---- ---- ----
Revenue
Net interest
income $2,435 $2,379 $2,193
Noninterest income 1,477 1,384 1,610
----- ----- -----
Total revenue 3,912 3,763 3,803
Noninterest
expense 2,002 2,113 2,492
----- ----- -----
Pretax, pre-
provision
earnings (a) $1,910 $1,650 $1,311

Provision for
credit losses $823 $751 $1,087

Income from
continuing
operations before
noncontrolling
interests (b) $781 $648 $195

Income from
discontinued
operations, net
of income taxes
(c) $22 $23 $12

Net income $803 $671 $207

Net income
attributable to
common
shareholders $786 $333 $65

Diluted earnings
per common share
Continuing
operations $1.43 $.61 $.11
Discontinued
operations (c) .04 .05 .03
--- --- ---
Net income $1.47 $.66 $.14
As adjusted (d) $1.60 $1.31 $.34

Cash dividends
declared per
common share $.10 $.10 $.10

Total preferred
dividends
declared,
including TARP $25 $93 $119
TARP Capital
Purchase Program
preferred
dividends (e) $89 $95
Impact of TARP
Capital Purchase
Program preferred
dividends per
diluted common
share $.18 $.21
Redemption of TARP
preferred stock
discount
accretion (e) $250

PERFORMANCE RATIOS
From continuing
operations
---------------
Noninterest income
to total revenue
(f) 38% 37% 42%
Efficiency (g) 51 56 66
From net income
---------------
Net interest
margin (h) 4.35% 4.24% 3.60%
Return on:
Average common
shareholders'
equity 11.52 5.37 1.52
Average assets 1.22 1.02 .30
-------------- ---- ---- ---

FINANCIAL RESULTS Six months ended
----------------
Dollars in
millions, except June June
per share data 30 30
2010 2009
---- ----
Revenue
Net interest
income $4,814 $4,513
Noninterest income 2,861 2,976
----- -----
Total revenue 7,675 7,489
Noninterest
expense 4,115 4,650
----- -----
Pretax, pre-
provision
earnings (a) $3,560 $2,839

Provision for
credit losses $1,574 $1,967

Income from
continuing
operations before
noncontrolling
interests (b) $1,429 $715

Income from
discontinued
operations, net
of income taxes
(c) $45 $22

Net income $1,474 $737

Net income
attributable to
common
shareholders $1,119 $525

Diluted earnings
per common share
Continuing
operations $2.06 $1.11
Discontinued
operations (c) .09 .05
--- ---
Net income $2.15 $1.16
As adjusted (d) $2.91 $1.44

Cash dividends
declared per
common share $.20 $.76

Total preferred
dividends
declared,
including TARP $118 $170
TARP Capital
Purchase Program
preferred
dividends (e) $89 $142
Impact of TARP
Capital Purchase
Program preferred
dividends per
diluted common
share $.17 $.32
Redemption of TARP
preferred stock
discount
accretion (e) $250

PERFORMANCE RATIOS
From continuing
operations
---------------
Noninterest income
to total revenue
(f) 37% 40%
Efficiency (g) 54 62
From net income
---------------
Net interest
margin (h) 4.29% 3.70%
Return on:
Average common
shareholders'
equity 8.63 5.72
Average assets 1.12 .53
-------------- ---- ---

Certain prior period amounts included in these Consolidated Financial
Highlights have been reclassified to conform with the current period
presentation.

(a) We believe that pretax, pre-provision earnings is useful as a
tool to help evaluate our ability to provide for credit costs
through operations.

(b) See page 19 for a reconciliation of business segment earnings to
income from continuing operations before noncontrolling interests.

(c) Includes results of operations for PNC Global Investment
Servicing Inc. (GIS) for all periods presented. We entered into a
definitive agreement to sell GIS in February 2010, and closed the
sale on July 1, 2010.

(d) See reconciliation to "as reported" diluted earnings per share
on page 16.

(e) We redeemed the TARP preferred stock on February 10, 2010.

(f) Calculated as noninterest income divided by the sum of net
interest income and noninterest income.

(g) Calculated as noninterest expense divided by the sum of net
interest income and noninterest income.

(h) Calculated as annualized taxable-equivalent net interest income
divided by average earning assets. The interest income earned on
certain earning assets is completely or partially exempt from
federal income tax. As such, these tax-exempt instruments typically
yield lower returns than taxable investments. To provide more
meaningful comparisons of margins for all earning assets, we use net
interest income on a taxable-equivalent basis in calculating net
interest margin by increasing the interest income earned on tax-
exempt assets to make it fully equivalent to interest income earned
on taxable investments. This adjustment is not permitted under GAAP
in the Consolidated Income Statement. The taxable-equivalent
adjustments to net interest income for the three months ended June
30, 2010, March 31, 2010, and June 30, 2009 were $19 million, $18
million, and $16 million, respectively. The taxable-equivalent
adjustments to net interest income for the six months ended June 30,
2010 and June 30, 2009 were $37 million and $31 million,
respectively.

The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)

RECONCILIATIONS OF "AS REPORTED" (GAAP) NET INCOME, NET INCOME
ATTRIBUTABLE TO COMMON
SHAREHOLDERS AND DILUTED EPS TO "AS ADJUSTED" AMOUNTS
In millions, except per share data

THREE MONTHS ENDED
June 30, 2010
-------------

Income
Taxes Net
(Benefit)
Pretax (a) Income
------ ---------- ------
Net income and diluted EPS, as reported $803
Adjustment:
Integration costs $100 $(35) 65
Net income and diluted EPS, as adjusted $868
----

March 31, 2010
--------------

Income
Taxes Net
(Benefit)
Pretax (a) Income
------ ---------- ------
Net income and diluted EPS, as reported $671
Adjustments:
Integration costs $113 $(40) 73
TARP preferred stock accelerated
discount accretion (b)
Net income and diluted EPS, as adjusted $744
----

June 30, 2009
-------------

Income
Taxes Net
(Benefit)
Pretax (a) Income
------ ---------- ------
Net income and diluted EPS, as reported $207
Adjustment:
Integration costs $125 $(34) 91
Net income and diluted EPS, as adjusted $298
----

SIX MONTHS ENDED
June 30, 2010
-------------

Income
Taxes Net
(Benefit)
Pretax (a) Income
------ ---------- ------
Net income and diluted EPS, as reported $1,474
Adjustments:
Integration costs $213 $(75) 138
TARP preferred stock accelerated
discount accretion (b)
Net income and diluted EPS, as adjusted $1,612
------

June 30, 2009
-------------

Income
Taxes Net
(Benefit)
Pretax (a) Income
------ ---------- ------
Net income and diluted EPS, as reported $737
Adjustment:
Integration costs $177 $(52) 125
Net income and diluted EPS, as adjusted $862
----

THREE MONTHS ENDED
June 30, 2010
-------------
Net Income
Attributable
to
Common Diluted
Shareholders EPS
------------ ---
Net income and diluted EPS, as reported $786 $1.47
Adjustment:
Integration costs 65 .13
Net income and diluted EPS, as adjusted $851 $1.60
---- -----

March 31, 2010
--------------
Net Income
Attributable
to
Common Diluted
Shareholders EPS
------------ ---
Net income and diluted EPS, as reported $333 $.66
Adjustments:
Integration costs 73 .15
TARP preferred stock accelerated
discount accretion (b) 250 .50
Net income and diluted EPS, as adjusted $656 $1.31
---- -----

June 30, 2009
-------------
Net Income
Attributable
to
Common Diluted
Shareholders EPS
------------ ---
Net income and diluted EPS, as reported $65 $.14
Adjustment:
Integration costs 91 .20
Net income and diluted EPS, as adjusted $156 $.34
---- ----

SIX MONTHS ENDED
June 30, 2010
-------------
Net Income
Attributable
to
Common Diluted
Shareholders EPS
------------ ---
Net income and diluted EPS, as reported $1,119 $2.15
Adjustments:
Integration costs 138 .27
TARP preferred stock accelerated
discount accretion (b) 250 .49
Net income and diluted EPS, as adjusted $1,507 $2.91
------ -----

June 30, 2009
-------------
Net Income
Attributable
to
Common Diluted
Shareholders EPS
------------ ---
Net income and diluted EPS, as reported $525 $1.16
Adjustment:
Integration costs 125 .28
Net income and diluted EPS, as adjusted $650 $1.44
---- -----

These tables represent reconciliations of certain "As Reported"
(GAAP) amounts to "As Adjusted" amounts for integration costs and
the TARP preferred stock accelerated discount accretion. We have
provided these adjusted amounts and reconciliations so that
investors, analysts, regulators and others will be better able to
evaluate the impact of these respective items on the results for and
as of the periods presented. We believe that information as
adjusted for the impact of the specified items may be useful due to
the extent to which the items are not indicative of ongoing
operations. Adjusted information supplements our results as
reported in accordance with GAAP and should not be viewed in
isolation from, or as a substitute for, GAAP results.

(a) Calculated using a marginal federal income tax rate of 35% and
includes applicable income tax adjustments.

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

The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)

June March June
30 31 30
2010 2010 2009
---- ---- ----

CAPITAL RATIOS
Tier 1 risk-based - as reported (a) 10.8% 10.3% 10.5%
Tier 1 risk-based - pro forma (b) 11.4
Tier 1 common - as reported (a) 8.4 7.9 5.3
Tier 1 common - pro forma (b) 9.0
Total risk-based (a) 14.4 13.9 14.1
Leverage (a) 9.2 8.8 9.1
Common shareholders' equity to assets 10.6 10.0 6.9

ASSET QUALITY RATIOS
Nonperforming loans to total loans 3.42% 3.66% 2.52%
Nonperforming assets to total loans and
foreclosed and other assets 3.92 4.14 2.81
Nonperforming assets to total assets 2.32 2.46 1.66
Net charge-offs to average loans (for
the three months ended) (annualized) 2.18 1.77 1.89
Allowance for loan and lease losses to
total loans 3.46 3.38 2.77
Allowance for loan and lease losses to
nonperforming loans (d) 101 92 110
-------------------------------------- --- --- ---

(a) The ratios as of June 30, 2010 are estimated.

(b) The following represents a reconciliation of certain risk-based
capital and ratios at June 30, 2010:

Tier 1
risk- Tier 1
based common
Dollars in billions (a) (a)
------ ------
Ratios - as reported 10.8% 8.4%
Capital - as reported $23.4 $18.3
Adjustment:
Net impact of July 1, 2010 sale of GIS (c) 1.4 1.4
------------------------------------------ --- ---
Capital - pro forma $24.8 $19.7
------------------- ----- -----
Ratios - pro forma 11.4% 9.0%
------------------ ---- ---

(c) The estimated net impact of this sale is as follows:

In billions
Sales price $2.3
Less:
Book equity / intercompany debt (1.7)
------------------------------- ----
Pretax gain .6
Income taxes (.3)
------------ ---
After-tax gain .3
-------------- ---
Elimination of net intangible assets:
Goodwill and other intangible assets 1.3
Eligible deferred income taxes on goodwill and
other intangible assets (.2)
---------------------------------------------- ---
Net intangible assets 1.1
--------------------- ---
Net impact of sale of GIS $1.4
------------------------- ----

We believe that the disclosure of these ratios reflecting the
estimated net impact of the sale of GIS provides additional
meaningful information regarding the risk-based capital ratios at
that date and the impact of this event on these ratios.

(d) Nonperforming loans do not include purchased impaired loans or
loans held for sale. Allowance includes impairment reserves
attributable to purchased impaired loans.

The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)

June 30 March 31 June 30
2010 2010 2009
---- ---- ----

BALANCE SHEET DATA
Dollars in millions, except per
share data
Assets $261,695 $265,396 $279,754
Loans (a) (b) 154,342 157,266 165,009
Allowance for loan and lease
losses (a) 5,336 5,319 4,569
Interest-earning deposits with
banks (a) 5,028 607 10,190
Investment securities (a) 53,717 57,606 49,969
Loans held for sale (b) 2,756 2,691 4,662
Goodwill and other intangible
assets 12,138 12,714 12,890
Equity investments (a) 10,159 10,256 8,168

Noninterest-bearing deposits 44,312 43,122 41,806
Interest-bearing deposits 134,487 139,401 148,633
Total deposits 178,799 182,523 190,439
Transaction deposits 125,712 126,420 120,324
Borrowed funds (a) 40,427 42,461 44,681
Shareholders' equity 28,377 26,818 27,294
Common shareholders' equity 27,725 26,466 19,363
Accumulated other comprehensive
loss 442 1,288 3,101

Book value per common share 52.77 50.32 42.00
Common shares outstanding
(millions) 525 526 461
Loans to deposits 86% 86% 87%

ASSETS UNDER ADMINISTRATION
(billions)
Discretionary assets under
management $99 $105 $98
Nondiscretionary assets under
administration 100 104 124
--- --- ---
Total assets under
administration $199 $209 $222
------------------ ---- ---- ----

(a) Amounts include consolidated variable interest entities. Some
June 30, 2010 and March 31, 2010 amounts include consolidated
variable interest entities that we consolidated effective January 1,
2010 based on guidance in ASC 810, Consolidation. Our first quarter
2010 Form 10-Q included and our second quarter 2010 Form 10-Q will
include additional information regarding these Consolidated Balance
Sheet line items.

(b) Amounts include items for which we have elected the fair value
option. Our first quarter 2010 Form 10-Q included and our second
quarter 2010 Form 10-Q will include additional information regarding
these Consolidated Balance Sheet line items.

The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)

BUSINESS SEGMENT EARNINGS (LOSS) (a) (b) Three months ended
------------------
June March June
In millions 30 31 30
2010 2010 2009
---- ---- ----
Retail Banking $85 $24 $61
Corporate & Institutional Banking 443 360 107
Asset Management Group 29 39 8
Residential Mortgage Banking 92 82 92
Distressed Assets Portfolio (86) 72 155
Other, including BlackRock (b) (c) 218 71 (228)
--- --- ----
Earnings from continuing operations
before noncontrolling interests $781 $648 $195
----------------------------------- ---- ---- ----

Six months
BUSINESS SEGMENT EARNINGS (LOSS) (a) (b) ended
----------
June
In millions 30 June 30
2010 2009
---- ----
Retail Banking $109 $111
Corporate & Institutional Banking 803 466
Asset Management Group 68 47
Residential Mortgage Banking 174 319
Distressed Assets Portfolio (14) 158
Other, including BlackRock (b) (c) 289 (386)
--- ----
Earnings from continuing operations before
noncontrolling interests $1,429 $715
------------------------------------------ ------ ----

(a) Our business information is presented based on our management
accounting practices and our management structure. We refine our
methodologies from time to time as our management accounting
practices are enhanced and our businesses and management structure
change. Certain prior period amounts have been reclassified to
reflect current methodologies and our current business and
management structure. Amounts are presented on a continuing
operations before noncontrolling interests basis and therefore
exclude the earnings attributable to GIS.

(b) We consider BlackRock to be a separate reportable business
segment but have combined its results with Other for this
presentation. Our second quarter 2010 Form 10-Q will include
additional information regarding BlackRock.

(c) Includes earnings and gains or losses related to our equity
interest in BlackRock, integration costs, asset and liability
management activities including net securities gains or losses,
other than temporary impairment of debt securities and certain
trading activities, equity management activities, exited businesses,
differences between business segment performance reporting and
financial statement reporting under generally accepted accounting
principles (GAAP), corporate overhead and intercompany eliminations.

CONTACTS:

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

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

SOURCE The PNC Financial Services Group, Inc.

Subject Codes: PC/t.100722095129863, PT/lang.en, PC/ticker, IN/FIN,
SU/CCA, SU/ERN, SU/ERP, RE/Pennsylvania, PC/priority.r,
PC/category.f, PC/class.1277, PC/WAVO_....7.,
PC/APT_....7, PC/trade_7, PC/wavo5_7, PC/Billing_FC1,
PC/Billing_IRW, PC/Billing_RWB, PC/Billing_TNW,
PC/Billing_US1, PC/1stAcc_701257, PC/bureau_NE,
PC/port_01, PC/port_31, PC/port_19, PC/port_91,
PC/contact, PC/website, PC/id_NE38024

Company Codes: NYSE:PNC