Net Income Up 24 Percent Over First Quarter 2010

Strong Business Performance and Increased Capital Flexibility Position
PNC for Growth

PR Newswire -- April 21, 2011

PITTSBURGH, April 21, 2011 /PRNewswire/ -- The PNC Financial Services Group,
Inc. (NYSE: PNC) today reported net income of $832 million, or $1.57 per diluted
common share, for the first quarter of 2011 compared with net income of $820
million, or $1.50 per diluted common share, for the fourth quarter of 2010 and
net income of $671 million, or $.66 per diluted common share, for the first
quarter of 2010.

"PNC delivered exceptional performance in the opening quarter of 2011," said
James E. Rohr, chairman and chief executive officer. "Confidence is returning to
the economy, and our strong balance sheet, capital position and sales momentum
create tremendous opportunities for PNC to increase market share. We recently
enhanced the return on shareholder investment through a significant increase in
our second quarter dividend. Going forward, PNC will continue to invest in our
businesses for growth across the franchise."

Income Statement Highlights

-- Strong results for the first quarter reflected pretax earnings from
continuing operations of $1.1 billion, comparable to the fourth quarter
of 2010.
-- Net interest income for the first quarter was $2.2 billion and the net
interest margin was 3.94 percent, both remaining relatively stable with
the fourth quarter of 2010.
-- Noninterest income of $1.5 billion for the first quarter declined $.2
billion from the linked quarter primarily due to a $160 million gain on
the sale of a portion of PNC's BlackRock shares in the fourth quarter.
-- The provision for credit losses of $.4 billion in the first quarter was
relatively consistent with the fourth quarter as overall credit quality
improved.
-- Noninterest expense decreased $270 million to $2.1 billion compared with
the fourth quarter primarily reflecting the company's disciplined
expense management and elevated fourth quarter expense levels.

Credit Quality Highlights

-- Improvement in overall credit quality continued in the first quarter of
2011. Nonperforming assets decreased $43 million to $5.3 billion at
March 31, 2011 compared with year end and declined $1.3 billion from
March 31, 2010. Accruing loans past due of $1.9 billion were relatively
unchanged from year end and significantly decreased from $3.3 billion at
March 31, 2010. The allowance for loan and lease losses was $4.8
billion, or 3.19 percent of total loans and 108 percent of nonperforming
loans, as of March 31, 2011.

Balance Sheet Highlights

-- Total loans were $149 billion at March 31, 2011 and $151 billion at
December 31, 2010. Growth in commercial loans of $1.4 billion during the
quarter was offset by declines in commercial real estate loans of $.8
billion and residential mortgage loans of $.7 billion. Loans and
commitments originated and renewed totaled approximately $27 billion in
the first quarter, including $.9 billion of small business loans.
-- Total deposits were $182 billion at March 31, 2011 and $183 billion at
December 31, 2010. Transaction deposits of $135 billion were essentially
stable with year end and grew $8.1 billion from March 31, 2010. Higher
cost retail certificates of deposit continued to decline with a
reduction of $1.5 billion, or 4 percent, in the first quarter.
-- PNC's high quality balance sheet was core funded with a loan to deposit
ratio of 82 percent at March 31, 2011 and a strong bank liquidity
position to support growth.
-- PNC's strong capital levels were reflected in its Tier 1 common capital
ratio which increased to an estimated 10.3 percent at March 31, 2011
from 9.8 percent at December 31, 2010.
-- The PNC board of directors raised the quarterly cash dividend on common
stock payable on May 5, 2011 to 35 cents per share, an increase of 25
cents per share, or 250 percent. The board of directors also confirmed
that PNC may begin to purchase common stock under its existing 25
million share repurchase program in open market or privately negotiated
transactions. PNC plans to repurchase up to $500 million of common stock
during the remainder of 2011.
-- PNC reached a definitive agreement in January 2011 to acquire 19
branches and approximately $350 million of deposits from BankAtlantic
Bancorp, Inc. located in the Tampa, Florida area. The transaction is
expected to close in June 2011, subject to customary closing conditions.

First quarter 2010 net income per diluted common share of $.66 included a
reduction of $.50 per diluted common share related to the redemption of TARP
preferred shares. The Consolidated Financial Highlights accompanying this news
release provide additional information regarding PNC's redemption of TARP
preferred shares and include reconciliations of reported to non-GAAP financial
measures including a reconciliation of business segment income to income from
continuing operations before noncontrolling interests. Reference to core net
interest income is to total net interest income less purchase accounting
accretion.

CONSOLIDATED REVENUE REVIEW

Total revenue was $3.6 billion for the first quarter of 2011 compared with $3.9
billion for the fourth quarter of 2010 and $3.8 billion for the first quarter of
2010. The decrease in revenue compared with the linked quarter was due to lower
noninterest income primarily resulting from a $160 million gain in the fourth
quarter of 2010 related to the sale of a portion of PNC's BlackRock shares. The
decrease in revenue compared with first quarter 2010 was mainly a result of
lower net interest income.

Net interest income of $2.2 billion for the first quarter of 2011 remained
relatively consistent with the fourth quarter of 2010 and declined $203 million
compared with the first quarter of 2010. The net interest margin was 3.94
percent for the first quarter of 2011 compared with 3.93 percent for fourth
quarter 2010 and 4.24 percent for first quarter 2010. The slight decrease in net
interest income of $25 million compared with the linked quarter was due to a
decline in purchase accounting accretion partially offset by growth in core net
interest income as a result of lower funding costs. The decrease in net interest
income and the net interest margin compared with the first quarter of 2010 was
attributable to lower purchase accounting accretion, soft loan demand and the
low interest rate environment partially offset by lower funding costs.

Noninterest income was $1.5 billion for the first quarter of 2011 compared with
$1.7 billion for the fourth quarter of 2010 and $1.4 billion for the first
quarter of 2010. Fourth quarter 2010 noninterest income included a gain of $160
million on 7.5 million BlackRock shares sold by PNC. Corporate service fees
decreased $153 million to $217 million compared with the linked quarter
primarily due to a change in the value of commercial mortgage servicing rights
and lower merger and acquisition advisory fees. A first quarter loss on
commercial mortgage servicing rights compared with a fourth quarter gain was due
to changes in interest rates and prepayments. Asset management fees declined $40
million, or 13 percent, from the fourth quarter reflecting higher earnings
recognized on the BlackRock investment in the fourth quarter. Residential
mortgage fees increased $38 million, or 24 percent, from the fourth quarter
primarily as a result of higher loan sales revenue and net hedging gains on
mortgage servicing rights. Service charges on deposits decreased 7 percent and
consumer service fees declined 3 percent largely due to seasonal declines in
fees. Other noninterest income of $343 million for the first quarter increased
$109 million from the linked quarter primarily due to repurchase reserves
recorded in the fourth quarter. Net gains on sales of securities were $37
million in the first quarter of 2011, a decline of $31 million compared with the
fourth quarter, and net other-than-temporary impairments improved by $10 million
to $34 million. Net securities gains during the first quarter mainly resulted
from sales of agency residential mortgage-backed securities and government
agency securities.

Noninterest income in the first quarter of 2011 increased $71 million compared
with the first quarter of 2010 due to higher residential mortgage fees, higher
net gains on sales of securities net of other-than-temporary impairments and a
decrease in repurchase reserves partially offset by lower corporate service fees
and a decline in service charges on deposits from the impact of Regulation E
rules pertaining to overdraft fees.

CONSOLIDATED EXPENSE REVIEW

Noninterest expense for the first quarter of 2011 was $2.1 billion compared with
$2.3 billion for the fourth quarter of 2010 and $2.1 billion in the first
quarter of 2010. The linked quarter decrease of $270 million primarily resulted
from disciplined expense management and elevated fourth quarter expense levels
due to residential mortgage expenses principally related to foreclosure
activities, the impact of integration costs and compensation-related costs.
These declines were partially offset by a reversal of a portion of an
indemnification liability for certain Visa litigation of $38 million in first
quarter 2011 compared with $76 million in fourth quarter 2010 as well as
investments in the businesses. Noninterest expense decreased $43 million
compared with the first quarter of 2010 primarily due to the impact of
integration costs in first quarter 2010 and the first quarter 2011 reversal of a
portion of an indemnification liability for certain Visa litigation partially
offset by investments in the businesses.

CONSOLIDATED BALANCE SHEET REVIEW

Total assets were $259 billion at March 31, 2011 compared with $264 billion at
December 31, 2010 and $265 billion at March 31, 2010. The decrease compared with
year end was primarily attributable to lower investment securities. The decline
from March 31, 2010 included lower loans somewhat offset by an increase in
investment securities.

Loans were $149.4 billion at March 31, 2011 compared with $150.6 billion at
December 31, 2010 and $157.3 billion at March 31, 2010. Growth in commercial
loans of $1.4 billion was offset by declines of $.8 billion in commercial real
estate loans, $.7 billion of residential real estate loans and $.6 billion of
home equity loans compared with year end. Average loans of $150 billion for the
first quarter increased $.2 billion compared with the fourth quarter as a result
of a 4 percent increase in average commercial loans largely from a modest
increase in utilization and new business activity somewhat offset by declines of
5 percent in average commercial real estate loans and 4 percent in average
residential mortgage loans. Average loans decreased $8.6 billion, or 5 percent,
compared with the first quarter of 2010 due to soft customer loan demand, loan
repayments, dispositions and net charge-offs. Total loan originations and new
commitments and renewals were approximately $27 billion for the first quarter of
2011 compared with $46 billion for the fourth quarter of 2010 and $23 billion
for the first quarter of 2010.

Investment securities at March 31, 2011 were $61.0 billion compared with $64.3
billion at December 31, 2010 and $57.6 billion at March 31, 2010. The decline
from year end was the result of principal payments and net sales of primarily
agency mortgage-backed securities and government agency securities. Average
investment securities were $62.2 billion for the first quarter of 2011, $62.3
billion for the fourth quarter of 2010 and $56.6 billion for the first quarter
of 2010. The increase compared with first quarter 2010 reflected net investments
of excess liquidity in short duration, high quality securities, primarily agency
residential mortgage-backed securities. At March 31, 2011, the available for
sale investment securities balance included a net unrealized pretax loss of $.6
billion representing the difference between fair value and amortized cost
compared with net unrealized pretax losses of $.9 billion at December 31, 2010
and $1.6 billion at March 31, 2010. The improvement in the net unrealized pretax
loss compared with year end was primarily due to improved liquidity in
non-agency residential mortgage-backed securities markets. The improvement
compared with March 31, 2010 was attributable to overall lower market interest
rates and also improved liquidity in non-agency residential and commercial
mortgage-backed securities markets.

Federal funds sold and resale agreements decreased $1.5 billion and trading
securities increased $.4 billion as of March 31, 2011 compared with December 31,
2010 due to hedging activities for residential mortgage servicing rights.

Deposits were $182.0 billion at March 31, 2011 compared with $183.4 billion at
December 31, 2010 and $182.5 billion at March 31, 2010. Average deposits of $181
billion for the first quarter of 2011 decreased $.9 billion compared with the
fourth quarter of 2010 and declined $2.3 billion compared with the first quarter
of 2010. In the linked quarter comparison, growth in average transaction
deposits of $.8 billion was more than offset by a decline in average retail
certificates of deposit of $2.7 billion, or 7 percent. Average transaction
deposits grew $7.4 billion, or 6 percent, compared with the first quarter of
2010 and average retail certificates of deposit decreased $10.7 billion, or 23
percent. The ongoing planned reduction of high-cost and primarily
nonrelationship certificates of deposit is part of PNC's overall deposit
strategy that is focused on growing demand and other transaction deposits as the
cornerstone product of customer relationships and a lower-cost, stable funding
source.

Borrowed funds were $35.0 billion at March 31, 2011 compared with $39.5 billion
at December 31, 2010 and $42.5 billion at March 31, 2010. The decline from year
end was primarily due to maturities of bank notes and senior debt, Federal Home
Loan Bank borrowings and subordinated debt. Average borrowed funds were $38.4
billion for the first quarter of 2011, $38.2 billion for the fourth quarter of
2010 and $42.3 billion for the first quarter of 2010. The increase in average
borrowed funds compared with the fourth quarter resulted from higher federal
funds purchased during first quarter 2011. The declines in the comparisons with
first quarter 2010 were primarily related to maturities of Federal Home Loan
Bank borrowings.

PNC's capital levels and ratios at March 31, 2011 remained strong. Common
shareholders' equity increased to $30.5 billion at March 31, 2011 compared with
$29.6 billion at December 31, 2010 and $26.5 billion at March 31, 2010 primarily
through earnings retention. In first quarter 2010, $3.45 billion of new common
equity was issued and $7.6 billion of preferred shares issued to the U.S.
Treasury under the TARP Capital Purchase Program were redeemed. The Tier 1
common capital ratio increased to an estimated 10.3 percent at March 31, 2011
from 9.8 percent at December 31, 2010 and 7.9 percent at March 31, 2010. The
Tier 1 risk-based capital ratio increased to an estimated 12.6 percent at March
31, 2011 from 12.1 percent at December 31, 2010 and 10.3 percent at March 31,
2010. Increases in both ratios were primarily attributable to retention of
earnings and, in the comparison with March 31, 2010, the third quarter 2010 sale
of PNC Global Investment Servicing.

The PNC board of directors recently raised the quarterly cash dividend on common
stock to 35 cents per share, an increase of 25 cents per share, payable on May
5, 2011. The board of directors also confirmed that PNC may begin to purchase
common stock in open market or privately negotiated transactions under its
existing 25 million share repurchase program, of which 24.7 million shares
remained as of March 31, 2011. PNC plans to repurchase up to $500 million of
common stock during the remainder of 2011.

CREDIT QUALITY REVIEW

Overall credit quality further improved in the first quarter of 2011.
Nonperforming assets declined by $43 million to $5.3 billion at March 31, 2011
compared with December 31, 2010 and decreased $1.3 billion, or 20 percent, from
$6.5 billion at March 31, 2010. The decline from a year ago reflected lower
commercial, residential real estate and commercial real estate nonperforming
loans. Nonperforming assets to total assets were 2.03 percent at March 31, 2011
compared with 2.01 percent at December 31, 2010 and 2.46 percent at March 31,
2010. Nonperforming loans declined to $4.4 billion as of March 31, 2011 from
$4.5 billion as of December 31, 2010 and $5.8 billion at March 31, 2010.
Included in nonperforming loans were troubled debt restructured loans of $882
million at March 31, 2011, $784 million at December 31, 2010 and $385 million at
March 31, 2010. The net increase in troubled debt restructurings reflected
continued efforts to work with borrowers experiencing financial difficulties.

Overall delinquencies remained stable in the first quarter of 2011. Accruing
loans past due 90 days or more decreased to $486 million at March 31, 2011 from
$542 million at December 31, 2010. Accruing loans past due 60 to 89 days of $363
million at March 31, 2011 declined $55 million since December 31, 2010. Accruing
loans past due 30 to 59 days were $1.0 billion at March 31, 2011 compared with
$942 million at December 31, 2010, an increase of $105 million primarily related
to commercial real estate loans.

The provision for credit losses was $421 million for the first quarter of 2011,
$442 million in fourth quarter 2010 and $751 million for the first quarter of
2010. The significant decline from the prior year first quarter was driven by
overall credit quality improvement and continuation of actions to reduce
exposure levels. Net charge-offs for the first quarter of 2011 were $533
million, or 1.44 percent of average loans on an annualized basis, compared with
$791 million, or 2.09 percent, for the fourth quarter of 2010 and $691 million,
or 1.77 percent, for the first quarter of 2010. Net charge-offs decreased in the
linked quarter comparison primarily due to a decline in commercial loan net
charge-offs of $161 million and lower residential real estate net charge-offs of
$68 million.

The allowance for loan and lease losses was $4.8 billion at March 31, 2011, $4.9
billion at December 31, 2010 and $5.3 billion at March 31, 2010. The allowance
for loan and lease losses to total loans was 3.19 percent at March 31, 2011,
3.25 percent at December 31, 2010 and 3.38 percent at March 31, 2010. The
allowance to nonperforming loans was 108 percent at March 31, 2011 compared with
109 percent at December 31, 2010 and 92 percent at March 31, 2010.

BUSINESS SEGMENT RESULTS

Retail Banking

Retail Banking incurred a loss of $18 million for the first quarter of 2011
compared with earnings of $44 million for the fourth quarter of 2010 and
earnings of $24 million for first quarter 2010. The loss in the linked quarter
comparison was driven by a higher provision for credit losses primarily
associated with the home equity loan portfolio and seasonally lower revenue and
noninterest expense. The decrease from the prior year first quarter resulted
from lower revenue from the impact of Regulation E rules related to overdraft
fees and the low interest rate environment, partially offset by a lower
provision for credit losses.

-- Checking relationships grew by 56,000 during the first quarter of 2011.
In addition, active online banking and active online bill payment
customers grew by 6 percent and 5 percent, respectively, in the first
quarter of 2011.
-- Success in implementing Retail Banking's deposit strategy resulted in
growth in average transaction deposits of $1.2 billion, or 2 percent,
compared with the fourth quarter and $3.7 billion, or 5 percent,
compared with the prior year first quarter. Transaction deposit growth
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 throughout
2011.
-- Customer loan demand has shown signs of improvement. Average loans were
essentially stable with the fourth quarter of 2010 and decreased $.9
billion, or 2 percent, compared with the year ago quarter. The decrease
from first quarter 2010 was primarily due to lower home equity loans,
commercial loans and residential mortgages partially offset by higher
education and indirect auto loans.
-- Net interest income for the first quarter of 2011 decreased $8 million,
or 1 percent, compared with the linked quarter and $51 million, or 6
percent, compared with the first quarter of 2010. The declines were
primarily driven by lower interest credits assigned to deposits.
-- Noninterest income decreased $23 million, or 5 percent, compared with
the fourth quarter and $61 million, or 12 percent, from the first
quarter of 2010. The linked quarter decline reflected primarily seasonal
decreases in transaction-related fees, such as merchant services, debit
cards and credit cards. In the year-over-year quarter comparison,
noninterest income declined due to lower overdraft fees resulting from
Regulation E rules.
-- Noninterest expense for the first quarter decreased $47 million, or 4
percent, from the fourth quarter and increased $26 million, or 3
percent, over the first quarter of 2010. The decrease from the linked
quarter was due to seasonally lower expenses including compensation and
volume-related expense associated with lower fee income and the timing
of marketing expense. In the year-over-year quarter comparison,
increased expense was driven by investments in the business.
-- Provision for credit losses was $276 million for the first quarter of
2011 compared with $157 million in the fourth quarter and $339 million
in the first quarter of 2010. Net charge-offs were $257 million for the
first quarter of 2011 compared with $225 million in the fourth quarter
and $300 million in the first quarter of 2010. The increase in the
provision compared with the fourth quarter was primarily due to trends
reflecting an increase in bankruptcies within the home equity portfolio,
continued loan modifications, many of which resulted in troubled debt
restructurings, and a longer foreclosure timeline. Credit quality
improved in the credit card and small business portfolios.
-- PNC's expansive branch footprint covers nearly one-third of the U.S.
population in 14 states with a network of 2,446 branches and 6,660 ATMs
at March 31, 2011. During the first quarter of 2011, PNC opened 6
traditional branches, consolidated 30 branches and had a net decrease of
13 ATMs.
-- For 2011, Retail Banking revenue will decline compared with 2010 from
the impact of the rules set forth in Regulation E related to overdraft
fees and is expected to be negatively impacted by the potential limits
related to interchange rates on debit card transactions proposed in the
Dodd-Frank legislation. The incremental negative impact of these two
aspects of regulatory reform on fees is estimated to be approximately
$400 million in 2011 compared with 2010 if limits to interchange rates
are implemented consistent with rules currently proposed by the Federal
Reserve Board. Changes in the proposed interchange rules could impact
this estimate. Further, estimates do not include any additional
financial impact of other or additional regulatory requirements.

Corporate & Institutional Banking

Corporate & Institutional Banking earned $432 million in the first quarter of
2011 compared with $543 million in the fourth quarter of 2010 and $368 million
in the first quarter of 2010. The decline in the linked quarter comparison
reflected lower net interest income and a decrease in the value of commercial
mortgage servicing rights partially offset by a decrease in noninterest expense
and a lower provision for credit losses. The increase in earnings over first
quarter 2010 was due to a lower provision for credit losses somewhat offset by
declines in net interest income and revenue from commercial mortgage banking
activities.

-- Net interest income for the first quarter of 2011 of $799 million
decreased $118 million compared with the fourth quarter of 2010 and $91
million compared with the first quarter of 2010. The decrease from the
linked quarter was primarily due to lower purchase accounting accretion.
The decline in the prior year first quarter comparison was mainly a
result of lower purchase accounting accretion, lower interest credits
assigned to deposits and a decrease in average loan balances partially
offset by improved loan spreads and an increase in average deposits.
-- Corporate service fees were $187 million in the first quarter of 2011
compared with $334 million in the fourth quarter of 2010 and $242
million in the first quarter of 2010. The linked quarter comparison
reflected a decrease in the value of commercial mortgage servicing
rights due to changes in interest rates and prepayments compared with an
increase in value in the fourth quarter of 2010. Lower merger and
acquisition advisory fees also impacted the comparison. The decline from
the first quarter of 2010 was primarily due to a reduction in the value
of commercial mortgage servicing rights largely driven by lower interest
rates, lower debt underwriting revenue and lower ancillary commercial
mortgage servicing fees.
-- Noninterest expense of $445 million in the first quarter of 2011
declined $61 million compared with the fourth quarter of 2010 and was
essentially flat compared with the first quarter of 2010. The decrease
from the linked quarter reflected lower compensation-related costs.
-- Provision for credit losses was a benefit of $30 million in the first
quarter of 2011 compared with provisions of $18 million in the fourth
quarter of 2010 and $236 million in the first quarter of 2010. The
year-over-year first quarter comparison reflected overall improvement in
portfolio credit quality along with lower loan and commitment levels.
Net charge-offs for the first quarter of 2011 decreased to $153 million
compared with $349 million in fourth quarter 2010 and $271 million in
the first quarter of 2010. Net charge-offs declined across all
portfolios in the linked quarter comparison, particularly in the
equipment lease financing and commercial real estate portfolios, which
also drove the year-over-year decline. Nonperforming assets declined for
the fourth consecutive quarter.
-- Average loans were $64 billion for the first quarter of 2011 compared
with $63 billion in the fourth quarter of 2010 and $66 billion in the
first quarter of 2010. The increase in the linked quarter comparison,
primarily in commercial loans, was due to a modest increase in
utilization and new business activity. The year-over-year first quarter
decline was largely related to exits of certain client relationships
combined with lower credit utilization rates in 2011.
-- Average deposits were $46 billion in both the first quarter of 2011 and
the fourth quarter of 2010 and increased $3.9 billion, or 9 percent,
from the prior year first quarter. Deposit inflows continued as
customers moved balances into noninterest-bearing demand deposits to
maintain liquidity.
-- The commercial mortgage servicing portfolio was $266 billion at both
March 31, 2011 and December 31, 2010 and $282 billion at March 31, 2010.
The decrease from a year ago was the result of run off exceeding
additions due to limited market opportunities to purchase servicing
rights as well as the sale of an acquired agency servicing operation, a
noncore business, in the second quarter of 2010.
-- Overall results benefited from successful sales efforts to new customers
and product penetration of the existing customer base. The business
achieved record client growth in 2010 and continued this momentum into
2011. Sales of treasury management and capital markets products to
customers in PNC's western markets have been successful following the
systems conversions. Sales in the first quarter of 2011 were ahead of
both target and first quarter 2010.

Asset Management Group

Asset Management Group earned $43 million in the first quarter of 2011 compared
with $28 million in the fourth quarter of 2010 and $39 million in the first
quarter of 2010. Assets under administration were $219 billion as of March 31,
2011. Earnings for the quarter reflected a benefit from the provision for credit
losses and lower noninterest expense compared with the fourth quarter. The
business maintained its focus on new client acquisition and client asset growth
during the quarter.

-- Assets under administration were $219 billion at March 31, 2011 compared
with $212 billion at December 31, 2010 and $209 billion at March 31,
2010. Discretionary assets under management were $110 billion at March
31, 2011 compared with $108 billion at December 31, 2010 and $105
billion at March 31, 2010. The increase in the comparisons was driven by
higher equity markets, successful client retention and strong sales
performance.
-- Noninterest income of $162 million for the quarter increased $3 million,
or 2 percent, compared with the linked quarter due to higher asset
values from stronger equity markets and new sales. The noninterest
income decline of $2 million, or 1 percent, in the prior year first
quarter comparison was primarily due to the exit of acquisition-related
noncore products.
-- Net interest income was $60 million for the first quarter of 2011
compared with $65 million in the fourth quarter of 2010 and $63 million
in the first quarter of 2010. The decreases were attributable to lower
loan yields and lower interest credits assigned to deposits reflective
of the current low rate environment.
-- Noninterest expense of $160 million in the first quarter of 2011
decreased $11 million, or 6 percent, compared with the fourth quarter
and increased $4 million, or 3 percent, from the year ago first quarter.
The decrease from the linked quarter was mainly due to higher
compensation-related costs in the fourth quarter. The increase from
first quarter 2010 was attributable to investments in the business to
drive growth.
-- Provision for credit losses was a benefit of $6 million in the first
quarter of 2011 reflecting improved credit quality compared with
provisions of $9 million for both the fourth quarter and first quarter
of 2010. A net recovery of $11 million was recognized for the first
quarter compared with net charge-offs of $21 million in the linked
quarter and $4 million in the first quarter of 2010.
-- Average deposits for the quarter of $ 7.7 billion increased $175
million, or 2 percent, compared with the fourth quarter and $765
million, or 11 percent, over the prior year first quarter. Average
transaction deposits grew 3 percent over the linked quarter and 15
percent compared with first quarter 2010 and were substantially offset
by the strategic run off of higher rate certificates of deposit in the
prior year comparison. Average loan balances of $6.3 billion increased
$40 million, or 1 percent, compared with the linked quarter and
decreased $126 million, or 2 percent, from the prior year first quarter
primarily due to soft loan demand in the current economy.

Residential Mortgage Banking

Residential Mortgage Banking earned $71 million in the first quarter of 2011
compared with $3 million in the fourth quarter of 2010 and $78 million in the
first quarter of 2010. Earnings increased from the fourth quarter primarily due
to lower foreclosure-related expenses, increased loan sales revenue and higher
net hedging gains on mortgage servicing rights. Earnings declined from the prior
year first quarter primarily as a result of a higher provision for credit
losses, lower servicing fees, lower net interest income and higher noninterest
expense partially offset by increased loans sales revenue and higher net hedging
gains on mortgage servicing rights.

-- Total loan originations were $3.2 billion for the first quarter of 2011
compared with $3.5 billion in the fourth quarter of 2010 and $2.0
billion in the first quarter of 2010. Refinance application volume
declined slightly from the linked quarter, but was up compared to first
quarter 2010. Loans continue to be originated primarily through direct
channels under FNMA, FHLMC and FHA/VA agency guidelines.
-- Residential mortgage loans serviced for others totaled $127 billion at
March 31, 2011 compared with $125 billion at December 31, 2010 and $141
billion at March 31, 2010. Although payoffs continued to outpace
production, the increase at March 31, 2011 compared with year end was
due to the acquisition of servicing rights related to $4.6 billion of
residential loans on March 31, 2011.
-- Noninterest income was $202 million in the first quarter of 2011
compared with $168 million in the fourth quarter of 2010 and $154
million in the first quarter of 2010. The linked quarter increase
reflected higher loan sales revenue and higher net hedging gains on
mortgage servicing rights. The year-over-year first quarter increase
resulted from higher loan sales revenue driven by higher loan
origination volume and higher net hedging gains on mortgage servicing
rights.
-- Net interest income was $56 million in the first quarter of 2011
compared with $60 million in the fourth quarter of 2010 and $74 million
in the first quarter of 2010. The decrease in both comparisons was
primarily due to lower interest earned on escrow deposits.
-- The provision for credit losses was $8 million in both the first quarter
of 2011 and fourth quarter of 2010 and was a benefit of $16 million in
the first quarter of 2010.
-- Noninterest expense was $137 million in the first quarter of 2011
compared with $215 million in the fourth quarter of 2010 and $120
million in the first quarter of 2010. The decrease compared with the
linked quarter was primarily due to lower foreclosure-related expenses.
The increase from the prior year first quarter was driven by higher loan
origination volume and higher foreclosure-related expenses.
-- The fair value of mortgage servicing rights was $1.1 billion at March
31, 2011 compared with $1.0 billion at December 31, 2010 and $1.3
billion at March 31, 2010. The increase in fair value from year end was
primarily attributable to the mortgage servicing acquisition of $4.6
billion on March 31, 2011. The decline in fair value from first quarter
2010 was due to lower mortgage rates, higher servicing costs and a
smaller mortgage servicing portfolio.

Distressed Assets Portfolio

Distressed Assets Portfolio segment had earnings of $25 million for the first
quarter of 2011 compared with a loss of $71 million in the fourth quarter of
2010 and earnings of $73 million for the first quarter of 2010. The increase in
earnings compared with the linked quarter was due to a lower provision for
credit losses, higher noninterest income and a decrease in noninterest expense.
The decrease in the year-over-year first quarter comparison resulted from lower
net interest income partially offset by an increase in noninterest income and a
lower provision for credit losses.

-- Average loans were $14 billion for the first quarter of 2011 compared
with $15 billion in the fourth quarter of 2010 and $18 billion in the
first quarter of 2010. The decreases were due to portfolio management
activities including loan sales, paydowns and net charge-offs.
-- Net interest income was $236 million for the first quarter of 2011
compared with $256 million for the fourth quarter of 2010 and $342
million for the first quarter of 2010. The decline in both comparisons
reflected lower purchase accounting accretion and a decline in average
loan balances.
-- Noninterest income was $9 million in the first quarter of 2011 compared
with a loss of $56 million in the fourth quarter of 2010 and a loss of
$12 million in the first quarter of 2010. Increases in reserves for
brokered home equity loan indemnification and repurchase obligations
were recorded in both quarters of 2010.
-- Noninterest expense for the first quarter of 2011 was $53 million
compared with $81 million in the fourth quarter of 2010 and $48 million
in the first quarter of 2010. The decrease in the linked quarter
comparison reflected expenditures in the fourth quarter in connection
with external servicing activity. The increase from the prior year first
quarter was driven by other real estate owned-related losses and
expenses.
-- The provision for credit losses was $152 million in the first quarter of
2011 compared with $231 million in the fourth quarter of 2010 and $165
million in first quarter of 2010. The decrease from the fourth quarter
was primarily due to declining losses in the residential mortgage
portfolios. The decrease from the prior year first quarter was driven by
improved credit performance within the mortgage and construction loan
portfolios.
-- Net charge-offs were $123 million for the first quarter of 2011 compared
with $183 million for the fourth quarter of 2010 and $111 million for
the first quarter of 2010. The decrease in the linked quarter comparison
was primarily due to lower net charge-offs on non-prime mortgages. The
year over year quarter comparison reflected increases for the brokered
home equity portfolio.
-- 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, through June 30, 2010. The sale of PNC Global
Investment Servicing was completed on July 1, 2010 and the after-tax gain on the
sale is reflected in discontinued operations for third quarter 2010. Business
segment results are presented on the basis of continuing operations before
noncontrolling interests.

PNC recorded earnings of $279 million in "Other, including BlackRock" for the
first quarter of 2011 compared with $273 million for the fourth quarter of 2010
and $66 million for the first quarter of 2010. First quarter 2011 earnings were
consistent with the fourth quarter, reflecting the impact of the gain on the
sale of a portion of PNC's BlackRock shares, higher earnings reported by
BlackRock and integration costs in the fourth quarter offset by higher net
interest income from asset and liability management activities in the first
quarter. The increase in earnings over the first quarter of 2010 primarily
reflected the impact of integration costs incurred in 2010, the reversal of a
portion of an indemnification liability for certain Visa litigation in first
quarter 2011 and higher net gains on sales of securities net of
other-than-temporary impairments in the first quarter of 2011.

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 10:00 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 54299314, and Internet access to the live audio
listen-only webcast of the call is available at www.pnc.com/investorevents.
PNC's first quarter 2011 earnings release, the related financial supplement, and
presentation slides to accompany the conference call remarks will be available
at www.pnc.com/investorevents prior to the beginning of the call. A telephone
replay of the call will be available for one week at (800) 642-1687 or (706)
645-9291 (international), conference ID 54299314, and a replay of the audio
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.

[TABULAR MATERIAL FOLLOWS]

The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)
Page 14

FINANCIAL RESULTS Three months ended
------------------
Dollars in millions, March December March
except per share data 31 31 31
2011 2010 2010
---- ---- ----
Revenue
Net interest income $2,176 $2,201 $2,379
Noninterest income (a) 1,455 1,702 1,384
----- ----- -----
Total revenue 3,631 3,903 3,763
Noninterest expense 2,070 2,340 2,113
----- ----- -----
Pretax, pre-
provision earnings
from continuing
operations (b) 1,561 1,563 1,650
Provision for credit
losses 421 442 751
--- --- ---
Income from continuing
operations before income
taxes and
noncontrolling
interests (pretax
earnings) $1,140 $1,121 $899

Income from continuing
operations before
noncontrolling interests
(c) $832 $820 $648

Income from discontinued
operations, net of income
taxes (d) 23
---

Net income $832 $820 $671

Less:
Net income (loss)
attributable to
noncontrolling
interests (5) (3) (5)
Preferred stock
dividends,
including TARP (e) 4 24 93
Preferred stock
discount accretion
and redemptions,
including
redemption of TARP
preferred stock
discount accretion
(e) 1 250

Net income attributable to
common shareholders (e) $833 $798 $333

Diluted earnings per
common share
Continuing operations $1.57 $1.50 $.61
Discontinued operations
(d) .05
---
Net income $1.57 $1.50 $.66

Cash dividends declared
per common share (f) $.10 $.10 $.10
----------------------- ---- ---- ----

Certain prior period amounts included in these Consolidated Financial
Highlights have been reclassified to conform with the current period
presentation, which we believe is more meaningful to readers of our
consolidated financial statements.

(a) Noninterest income for the fourth quarter of 2010 includes a
$160 million gain related to our sale of a portion of our shares of
BlackRock stock as part of BlackRock's secondary common stock
offering in November 2010.

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

(c) See page 15 for a reconciliation of business segment income to
income from continuing operations before noncontrolling interests.

(d) Includes results of operations for PNC Global Investment
Servicing Inc. (GIS). We sold GIS effective July 1, 2010.

(e) We redeemed the Series N (TARP) Preferred Stock on February 10,
2010. In connection with the redemption, we accelerated the
accretion of the remaining issuance discount on the Series N
Preferred Stock and recorded a corresponding reduction in retained
earnings of $250 million in the first quarter of 2010. This resulted
in a one-time, noncash reduction in net income attributable to
common shareholders and related basic and diluted earnings per
share. The impact on diluted earnings per share was $.50 for the
first quarter of 2010. Total dividends declared for the first
quarter of 2010 included $89 million on the Series N Preferred
Stock.

(f) In April 2011, the PNC Board of Directors declared a quarterly
cash dividend on common stock of 35 cents per share, an increase of
25 cents per share, or 250%, from the prior quarterly dividend of 10
cents per share. The increased dividend is payable May 5, 2011 to
shareholders of record at the close of business on April 18, 2011.

The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)
Page 15

Three months ended
------------------
March December March
31 31 31
2011 2010 2010
---- ---- ----
PERFORMANCE RATIOS
Net interest margin (a) 3.94% 3.93% 4.24%
Provision-adjusted net interest
margin (b) 3.18 3.15 2.90
Noninterest income to total
revenue (c) 40 44 37
Efficiency (d) 57 60 56
Return on:
Average common shareholders'
equity 11.12 10.61 5.37
Average assets 1.29 1.23 1.02

BUSINESS SEGMENT INCOME (LOSS)
(e) (f)
In millions

Retail Banking $(18) $44 $24
Corporate & Institutional
Banking 432 543 368
Asset Management Group 43 28 39
Residential Mortgage Banking 71 3 78
Distressed Assets Portfolio 25 (71) 73
Other, including BlackRock (f)
(g) (h) 279 273 66
--- --- ---
Income from continuing
operations before
noncontrolling interests $832 $820 $648
------------------------ ---- ---- ----

(a) 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 net interest 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 March 31, 2011, December 31, 2010, and March 31, 2010
were $24 million, $22 million, and $18 million, respectively.

(b) A reconciliation of net interest margin to provision-adjusted
net interest margin follows. We believe that provision-adjusted net
interest margin, a non-GAAP measure, is useful as a tool to help
evaluate the amount of credit related risk associated with interest-
earning assets.

Three months ended
------------------
December
March 31 31 March 31
2011 2010 2010
---- ---- ----
Net interest margin, as
reported 3.94% 3.93% 4.24%
Less: provision adjustment .76 .78 1.34
--- --- ----
Provision-adjusted net
interest margin 3.18% 3.15% 2.90%

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

(c) Calculated as noninterest income divided by total revenue.

(d) Calculated as noninterest expense divided by total revenue.

(e) 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. Effective January 1, 2011, we revised certain
capital allocations among our reportable business segments
including, as appropriate, amounts for prior periods. PNC's total
capital did not change as a result of these adjustments for any
previously reported periods. Amounts are presented on a continuing
operations before noncontrolling interests basis and therefore
exclude the earnings attributable to GIS, which we sold July 1,
2010.

(f) We consider BlackRock to be a separate reportable business
segment but have combined its results with Other for this
presentation. Our first quarter 2011 Form 10-Q will include
additional information regarding BlackRock.

(g) Includes earnings and gains or losses related to PNC's 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.

(h) Amount for the fourth quarter of 2010 includes the $160 million
gain ($102 million after taxes) related to our gain on the sale of a
portion of our shares of BlackRock stock as part of BlackRock's
November 2010 secondary common stock offering.

The PNC Financial Services Group, Inc.
Consolidated Financial Highlights (Unaudited)
Page 16

December
March 31 31 March 31
2011 2010 2010
---- ---- ----

BALANCE SHEET DATA
Dollars in millions, except
per share data
Assets $259,378 $264,284 $265,396
Loans (a) (b) 149,387 150,595 157,266
Allowance for loan and
lease losses (a) 4,759 4,887 5,319
Interest-earning deposits
with banks (a) 1,359 1,610 607
Investment securities (a) 60,992 64,262 57,606
Loans held for sale (b) 2,980 3,492 2,691
Goodwill and other
intangible assets 10,764 10,753 12,714
Equity investments (a) 9,595 9,220 10,256

Noninterest-bearing
deposits 48,707 50,019 43,122
Interest-bearing deposits 133,283 133,371 139,401
Total deposits 181,990 183,390 182,523
Transaction deposits 134,516 134,654 126,420
Borrowed funds (a) 34,996 39,488 42,461
Shareholders' equity 31,132 30,242 26,818
Common shareholders' equity 30,485 29,596 26,466
Accumulated other
comprehensive income
(loss) (309) (431) (1,288)

Book value per common share 58.01 56.29 50.32
Common shares outstanding
(millions) 526 526 526
Loans to deposits 82% 82% 86%

ASSETS UNDER ADMINISTRATION
(billions)
Discretionary assets under
management $110 $108 $105
Nondiscretionary assets
under administration 109 104 104
Total assets under
administration 219 212 209

CAPITAL RATIOS
Tier 1 common (c) 10.3% 9.8% 7.9%
Tier 1 risk-based (c) 12.6 12.1 10.3
Total risk-based (c) 16.2 15.6 13.9
Leverage (c) 10.6 10.2 8.8
Common shareholders' equity
to assets 11.8 11.2 10.0

ASSET QUALITY RATIOS
Nonperforming loans to
total loans 2.94% 2.97% 3.66%
Nonperforming assets to
total loans, OREO and
foreclosed assets 3.50 3.50 4.14
Nonperforming assets to
total assets 2.03 2.01 2.46
Net charge-offs to average
loans (for the three
months ended) (annualized) 1.44 2.09 1.77
Allowance for loan and
lease losses to total
loans 3.19 3.25 3.38
Allowance for loan and
lease losses to
nonperforming loans (d) 108 109 92
------------------------ --- --- ---

(a) Amounts include consolidated variable interest entities. Our
2010 Form 10-K included, and our first quarter 2011 Form 10-Q will
include, additional information regarding these Consolidated Balance
Sheet line items. Also includes our equity interest in BlackRock
under Equity investments.

(b) Amounts include assets for which we have elected the fair value
option. Our 2010 Form 10-K included, and our first quarter 2011 Form
10-Q will include, additional information regarding these
Consolidated Balance Sheet line items.

(c) The ratios as of March 31, 2011 are estimated.

(d) The allowance for loan and lease losses includes impairment
reserves attributable to purchased impaired loans. Nonperforming
loans do not include purchased impaired loans or loans held for
sale.

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
and its future business and operations 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
2010 Form 10-K, including in the Risk Factors and Risk Management sections of
that report, and in our subsequent SEC filings. Our forward-looking statements
may also be subject to other risks and uncertainties, including those that we
may discuss elsewhere in this 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 in
mid-2009 and continued throughout 2010 and into 2011.
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.
-- Turbulence in significant portions of the US and global financial
markets 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 will be impacted by the extensive reforms provided for in the
Dodd-Frank Wall Street Reform and Consumer Protection Act ("Dodd-Frank
Act") and ongoing reforms impacting the financial institutions industry
generally. Further, as much of the Dodd-Frank Act will require the
adoption of implementing regulations by a number of different regulatory
bodies, the precise nature, extent and timing of many of these reforms
and the impact on us is still uncertain.
-- Financial industry restructuring in the current environment could also
impact our business and financial performance as a result of changes in
the creditworthiness and performance of our counterparties and by
changes in the competitive and regulatory landscape.
-- Our results depend on our ability to manage current elevated levels of
impaired assets.
-- Given current economic and financial market conditions, our
forward-looking financial statements are subject to the risk that these
conditions will be substantially different than we are currently
expecting. These statements are based on our current view that the
moderate economic recovery that began in mid-2009 and continued
throughout 2010 will transition into a self-sustaining economic
expansion in 2011 pushing the unemployment rate lower amidst continued
low interest rates.
-- Legal and regulatory developments could have an impact on our ability to
operate our businesses or our financial condition or results of
operations or our competitive position or reputation. Reputational
impacts, in turn, could affect matters such as business generation and
retention, our ability to attract and retain management, liquidity, and
funding. These legal and regulatory developments could include:
o Changes resulting from legislative and regulatory responses to the
current economic and financial industry environment.
o Other legislative and regulatory reforms, including broad-based
restructuring of financial industry regulation (such as those under
the Dodd-Frank Act) 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. These matters may result in
monetary judgments or settlements or other remedies, including fines,
penalties, restitution or alterations in our business practices and in
additional expenses and collateral costs.
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 Dodd-Frank Act and of the 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.
-- 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, financial services assets and related deposits. 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. In addition, 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.

CONTACTS:

MEDIA:
Fred Solomon
(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.110421063359411, PT/lang.en, PC/ticker, IN/FIN,
SU/ERN, SU/CCA, SU/ERP, RE/Pennsylvania, PC/priority.r,
PC/category.f, PC/class.1248, PC/WAVO_....k.,
PC/APT_....k, PC/trade_k, PC/wavo5_k, PC/class.1278,
PC/class.1203, PC/WAVO_.z...., PC/APT_.z..., PC/city_z,
PC/wavo2_z, PC/class.1000, PC/WAVO_..b..., PC/APT_..b..,
PC/circuit_b, PC/wavo3_b, PC/DataFeat_natl3, PC/port_32,
PC/Billing_IRW, PC/Billing_RWB, PC/Billing_TNW,
PC/Billing_US1, PC/1stAcc_701257, PC/bureau_NE,
PC/port_01, PC/port_96, PC/port_31, PC/port_19,
PC/port_91, PC/website, PC/id_NE86039

Company Codes: NYSE:PNC