Segment Reporting

9 Months Ended

Sep. 30, 2011

Segment Reporting [Abstract]

Segment Reporting

Note 18 Segment Reporting

We have 6 reportable business segments:

• Retail Banking
• Corporate & Institutional Banking
• Asset Management Group
• Residential Mortgage Banking
• BlackRock
• Distressed Assets Portfolio

Results of individual businesses are presented based on our management accounting practices and management structure. There is no comprehensive, authoritative body of guidance for management accounting equivalent to GAAP; therefore, the financial results of our individual businesses are not necessarily comparable with similar information for any other company. We refine our methodologies from time to time as our management accounting practices are enhanced and our businesses and management structure change.

Financial results are presented, to the extent practicable, as if each business operated on a stand-alone basis. As permitted under GAAP, we have aggregated the business results forcertain similar operating segments for financial reporting purposes.

Assets receive a funding charge and liabilities and capital receive a funding credit based on a transfer pricing methodology that incorporates product maturities, duration and other factors.

Capital is intended to cover unexpected losses and is assigned to our business segments using our risk-based economic capital model, including consideration of the goodwill and other intangible assets at those business segments, as well as the diversification of risk among the business segments. We have revised certain capital allocations among our business segments, including amounts for prior periods. PNC's total capital did not change as a result of these adjustments for any periods presented.

We have allocated the allowances for loan and lease losses and unfunded loan commitments and letters of credit based on our assessment of risk in each business segment's loan portfolio. Our allocation of the costs incurred by operations and other shared support areas not directly aligned with the businesses is primarily based on the use of services.

Total business segment financial results differ from consolidated income from continuing operations before noncontrolling interests, which itself excludes the earnings and revenue attributable to GIS through June 30, 2010 and the related third quarter 2010 after-tax gain on the sale of GIS that are reflected in discontinued operations. The impact of these differences is reflected in the “Other” category in the business segment tables. “Other” includes residual activities that do not meet the criteria for disclosure as a separate reportable business, such as gains or losses related to BlackRock transactions including LTIP share distributions and obligations, integration costs, asset and liability management activities including net securities gains or losses, other-than-temporary impairment of investment securities and certain trading activities, exited businesses, equity management activities, alternative investments, intercompany eliminations, most corporate overhead, tax adjustments that are not allocated to business segments, and differences between business segment performance reporting and financial statement reporting (GAAP), including the presentation of net income attributable to noncontrolling interests. Assets, revenue and earnings attributable to foreign activities were not material in the periods presented for comparative purposes.

Business Segment Products and Services

Retail Banking provides deposit, lending, brokerage, investment management, and cash management services to consumer and small business customers within our primary geographic markets. Our customers are serviced through our branch network, call centers and online banking. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Maryland, Illinois, Indiana, Kentucky, Florida, Virginia, Missouri, Delaware, Washington, D.C., and Wisconsin.

Corporate & Institutional Bankingprovides lending, treasury management, and capital markets-related products and services to mid-sized corporations, government and not-for-profit entities, and selectively to large corporations. Lending products include secured and unsecured loans, letters of credit and equipment leases. Treasury management services include cash and investment management, receivables management, disbursement services, funds transfer services, information reporting, and global trade services. Capital markets-related products and services include foreign exchange, derivatives, loan syndications, mergers and acquisitions advisory and related services to middle-market companies, our multi-seller conduit, securities underwriting, and securities sales and trading. Corporate & Institutional Banking also provides commercial loan servicing, and real estate advisory and technology solutions for the commercial real estate finance industry. Corporate & Institutional Banking provides products and services generally within our primary geographic markets, with certain products and services offered nationally and internationally.

Asset Management Group includes personal wealth management for high net worth and ultra high net worth clients and institutional asset management. Wealth management products and services include financial planning, customized investment management, private banking, tailored credit solutions and trust management and administration for individuals and their families. Institutional asset management provides investment management, custody, and retirement planning services. The institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments located primarily in our geographic footprint.

Residential Mortgage Bankingdirectly originates primarily first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint, and also originates loans through majority owned affiliates. Mortgage loans represent loans collateralized by one-to-four-family residential real estate. These loans are typically underwritten to government agency and/or third party standards, and sold, servicing retained, to secondary mortgage conduits FNMA, FHLMC, Federal Home Loan Banks and third-party investors, or are securitized and issued under the GNMA program. The mortgage servicing operation performs all functions related to servicing mortgage loans - primarily those in first lien position - for various investors and for loans owned by PNC. Certain loans originated through majority owned affiliates are sold to others.

BlackRockis the largest publicly traded investment management firm in the world. BlackRock manages assets on behalf of institutional and individual investors worldwide through a variety of equity, fixed income, multi-asset class, alternative and cash management separate accounts and funds, including iShares®, the global product leader in exchange-traded funds. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services globally to a broad base of clients. At September 30,2011, our economic interest in BlackRock was 21%.

PNC received cash dividends from BlackRock of $160million and $139 million during the nine months ended September 30,2011, and September 30,2010, respectively.

Distressed Assets Portfolioincludes commercial residential development loans, cross-border leases, consumer brokered home equity loans, retail mortgages, non-prime mortgages, and residential construction loans. These loans require special servicing and management oversight given current market conditions. We obtained the majority of these loans through acquisitions of other companies.

Results Of Businesses
				Corporate &		Asset		Residential				Distressed
Three months ended September 30		Retail		Institutional		Management		Mortgage				Assets
In millions		Banking		Banking		Group		Banking		BlackRock		Portfolio		Other		Consolidated
2011
Income Statement
Net interest income		$	820	$	847	$	58	$	46			$	228	$	176	$	2,175
Noninterest income			463		254		159		206	$	122		10		155		1,369
	Total revenue		1,283		1,101		217		252		122		238		331		3,544
Provision for credit losses (benefit)			206		11		(10)		15				45		(6)		261
Depreciation and amortization			47		30		10		2						71		160
Other noninterest expense			978		418		165		201				47		171		1,980
Income from continuing operations before income taxes
	and noncontrolling interests		52		642		52		34		122		146		95		1,143
Income taxes (benefit)			19		223		19		12		30		53		(47)		309
Income from continuing operations before noncontrolling
	interests	$	33	$	419	$	33	$	22	$	92	$	93	$	142	$	834
Inter-segment revenue				$	8	$	4	$	2	$	4	$	(2)	$	(16)
Average Assets (a)		$	66,158	$	81,899	$	6,664	$	10,877	$	5,441	$	12,715	$	83,097	$	266,851
2010
Income Statement
Net interest income		$	860	$	831	$	66	$	52			$	283	$	123	$	2,215
Noninterest income			499		237		150		232	$	128		(35)		172		1,383
	Total revenue		1,359		1,068		216		284		128		248		295		3,598
Provision for credit losses (benefit)			327		(48)		(12)		21				176		22		486
Depreciation and amortization			48		33		11		1						65		158
Other noninterest expense			991		414		149		118				46		282		2,000
Income (loss) from continuing operations before income taxes
	and noncontrolling interests		(7)		669		68		144		128		26		(74)		954
Income taxes (benefit)			(3)		234		25		47		29		6		(159)		179
Income (loss) from continuing operations before noncontrolling
	interests	$	(4)	$	435	$	43	$	97	$	99	$	20	$	85	$	775
Inter-segment revenue						$	3	$	4	$	6	$	(3)	$	(10)
Average Assets (a)		$	67,003	$	76,930	$	6,899	$	9,164	$	6,275	$	16,745	$	81,563	$	264,579
				Corporate &		Asset		Residential				Distressed
Nine months ended September 30		Retail		Institutional		Management		Mortgage				Assets
In millions		Banking		Banking		Group		Banking		BlackRock		Portfolio		Other		Consolidated
2011
Income Statement
Net interest income		$	2,447	$	2,460	$	177	$	149			$	721	$	547	$	6,501
Noninterest income			1,353		885		488		580	$	351		32		587		4,276
	Total revenue		3,800		3,345		665		729		351		753		1,134		10,777
Provision for credit losses (benefit)			662		12		(34)		15				278		29		962
Depreciation and amortization			140		108		30		7						209		494
Other noninterest expense			2,907		1,228		473		473				156		655		5,892
Income from continuing operations before income taxes
	and noncontrolling interests		91		1,997		196		234		351		319		241		3,429
Income taxes (benefit)			32		698		72		86		80		117		(234)		851
Income from continuing operations before noncontrolling
	interests	$	59	$	1,299	$	124	$	148	$	271	$	202	$	475	$	2,578
Inter-segment revenue		$	1	$	17	$	10	$	6	$	12	$	(7)	$	(39)
Average Assets (a)		$	66,193	$	79,315	$	6,744	$	11,103	$	5,441	$	13,392	$	81,331	$	263,519
2010
Income Statement
Net interest income		$	2,607	$	2,634	$	191	$	196			$	973	$	428	$	7,029
Noninterest income			1,499		904		469		568	$	326		(37)		515		4,244
	Total revenue		4,106		3,538		660		764		326		936		943		11,273
Provision for credit losses (benefit)			946		285		11		(3)				745		76		2,060
Depreciation and amortization			170		105		31		3						206		515
Other noninterest expense			2,838		1,210		445		345				169		751		5,758
Income (loss) from continuing operations before income taxes
	and noncontrolling interests		152		1,938		173		419		326		22		(90)		2,940
Income taxes (benefit)			52		687		64		153		73		8		(301)		736
Income from continuing operations before noncontrolling
	interests	$	100	$	1,251	$	109	$	266	$	253	$	14	$	211	$	2,204
Inter-segment revenue				$	20	$	9	$	9	$	17	$	(10)	$	(45)
Average Assets (a)		$	67,782	$	77,835	$	6,977	$	8,903	$	6,275	$	18,246	$	79,337	$	265,355
(a)	Period-end balances for BlackRock.