Results of individual businesses are presented based on our internal management reporting practices. 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 periodically refine our internal methodologies as management reporting practices are enhanced. To the extent practicable, retrospective application of new methodologies is made to prior period reportable business segment results and disclosures to create comparability with the current period.

Financial results are presented, to the extent practicable, as if each business operated on a stand-alone basis. Additionally, we have aggregated the results for corporate support functions within “Other” 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. A portion of 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 at those business segments, as well as the diversification of risk among the business segments, ultimately reflecting PNC's portfolio risk adjusted capital allocation.

We have allocated the allowances for loan and lease losses and for unfunded loan commitments and letters of credit based on the loan exposures within each business segment's portfolio. Key reserve assumptions and estimation processes react to and are influenced by observed changes in loan portfolio performance experience, the financial strength of the borrower, and economic conditions. Key reserve assumptions are periodically updated.

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 total consolidated net income. 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, 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, private equity 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 as the segments' results exclude their portion 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.

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, ATMs, call centers, online banking and mobile channels. The branch network is located primarily in Pennsylvania, Ohio, New Jersey, Michigan, Illinois, Maryland, Indiana, North Carolina, Florida, Kentucky, Washington, D.C., Delaware, Alabama, Virginia, Missouri, Georgia, Wisconsin and South Carolina.

Corporate & Institutional Banking provides lending, treasury management, and capital markets-related products and services to mid-sized and large corporations, government and not-for-profit entities. 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, securities, loan syndications and mergers and acquisitions advisory and related services to middle-market companies. We also provide commercial loan servicing, and real estate advisory and technology solutions, for the commercial real estate finance industry. Products and services are generally provided 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 investment and retirement 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 administration and retirement administration services. Institutional clients include corporations, unions, municipalities, non-profits, foundations and endowments, primarily located in our geographic footprint.

Residential Mortgage Banking directly originates first lien residential mortgage loans on a nationwide basis with a significant presence within the retail banking footprint. 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 of 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.

BlackRock is a leader in investment management, risk management and advisory services for institutional and retail clients worldwide. BlackRock provides diversified investment management services to institutional clients, intermediary investors and individual investors through various investment vehicles. Investment management services primarily consist of the management of equity, fixed income, multi-asset class, alternative investment and cash management products. BlackRock offers its investment products in a variety of vehicles, including open-end and closed-end mutual funds, iShares® exchange-traded funds (ETFs), collective investment trusts and separate accounts. In addition, BlackRock provides market risk management, financial markets advisory and enterprise investment system services to a broad base of clients. Financial markets advisory services include valuation services relating to illiquid securities, dispositions and workout assignments (including long-term portfolio liquidation assignments), risk management and strategic planning and execution.

We hold an equity investment in BlackRock, which is a key component of our diversified revenue strategy. BlackRock is a publicly traded company, and additional information regarding its business is available in its filings with the Securities and Exchange Commission (SEC). At June 30, 2014, our economic interest in BlackRock was 22%.

PNC received cash dividends from BlackRock of $142 million and $125 million during the first six months of 2014 and 2013, respectively.

Non-Strategic Assets Portfolio includes a consumer portfolio of mainly residential mortgage and brokered home equity loans and lines of credit, and a small commercial/commercial real estate loan and lease portfolio. We obtained a significant portion of these non-strategic assets through acquisitions of other companies.

Table 128: Results Of Businesses
				Corporate &		Asset		Residential				Non-Strategic
Three months ended June 30		Retail		Institutional		Management		Mortgage				Assets
In millions		Banking		Banking		Group		Banking		BlackRock		Portfolio		Other (a)		Consolidated (a)
2014
Income Statement
Net interest income		$	973	$	889	$	72	$	37			$	137	$	21	$	2,129
Noninterest income			541		427		207		190	$	172		10		134		1,681
	Total revenue		1,514		1,316		279		227		172		147		155		3,810
Provision for credit losses (benefit)			4		103		(6)		1				(39)		9		72
Depreciation and amortization			44		32		11		3						95		185
Other noninterest expense			1,111		472		191		166				30		173		2,143
Income (loss) before income taxes and
	noncontrolling interests		355		709		83		57		172		156		(122)		1,410
Income taxes (benefit)			130		239		30		21		42		57		(161)		358
Net income		$	225	$	470	$	53	$	36	$	130	$	99	$	39	$	1,052
Inter-segment revenue		$	1	$	7	$	3	$	8	$	4	$	(5)	$	(18)
Average Assets (b)		$	75,203	$	122,025	$	7,685	$	7,486	$	6,400	$	8,577	$	95,144	$	322,520
2013
Income Statement
Net interest income		$	1,012	$	912	$	70	$	51			$	164	$	49	$	2,258
Noninterest income			542		477		184		177	$	149		11		266		1,806
	Total revenue		1,554		1,389		254		228		149		175		315		4,064
Provision for credit losses (benefit)			148		(40)		1		4				39		5		157
Depreciation and amortization			45		32		11		3						86		177
Other noninterest expense			1,111		467		184		189				41		236		2,228
Income (loss) before income taxes and
	noncontrolling interests		250		930		58		32		149		95		(12)		1,502
Income taxes (benefit)			92		318		22		12		37		35		(129)		387
Net income		$	158	$	612	$	36	$	20	$	112	$	60	$	117	$	1,115
Inter-segment revenue		$	2	$	5	$	3	$	2	$	4	$	(3)	$	(13)
Average Assets (b)		$	74,516	$	112,207	$	7,289	$	10,407	$	5,982	$	10,290	$	81,242	$	301,933

				Corporate &		Asset		Residential				Non-Strategic
Six months ended June 30		Retail		Institutional		Management		Mortgage				Assets
In millions		Banking		Banking		Group		Banking		BlackRock		Portfolio		Other (a)		Consolidated (a)
2014
Income Statement
Net interest income		$	1,953	$	1,791	$	143	$	77			$	279	$	81	$	4,324
Noninterest income			1,055		791		406		356	$	332		16		307		3,263
	Total revenue		3,008		2,582		549		433		332		295		388		7,587
Provision for credit losses (benefit)			149		90		6		0		0		(91)		12		166
Depreciation and amortization			88		63		21		6		0		0		188		366
Other noninterest expense			2,167		929		380		376		0		56		318		4,226
Income (loss) before income taxes and
	noncontrolling interests		604		1,500		142		51		332		330		(130)		2,829
Income taxes (benefit)			221		507		52		19		79		121		(282)		717
Net income		$	383	$	993	$	90	$	32	$	253	$	209	$	152	$	2,112
Inter-segment revenue		$	2	$	5	$	6	$	12	$	8	$	(8)	$	(25)
Average Assets (b)		$	75,559	$	119,992	$	7,642	$	8,128	$	6,400	$	8,732	$	94,596	$	321,049
2013
Income Statement
Net interest income		$	2,061	$	1,838	$	143	$	99			$	367	$	139	$	4,647
Noninterest income			976		862		366		420	$	287		27		434		3,372
	Total revenue		3,037		2,700		509		519		287		394		573		8,019
Provision for credit losses (benefit)			310		(26)		6		24		0		81		(2)		393
Depreciation and amortization			92		64		21		6		0		0		169		352
Other noninterest expense			2,195		915		357		386		0		93		475		4,421
Income (loss) before income taxes and
	noncontrolling interests		440		1,747		125		103		287		220		(69)		2,853
Income taxes (benefit)			162		594		46		38		67		81		(245)		743
Net income		$	278	$	1,153	$	79	$	65	$	220	$	139	$	176	$	2,110
Inter-segment revenue		$	2	$	11	$	6	$	3	$	8	$	(5)	$	(25)
Average Assets (b)		$	74,317	$	111,941	$	7,210	$	10,604	$	5,982	$	10,511	$	82,081	$	302,646
(a)	Amounts for 2013 periods have been updated to reflect first quarter 2014 adoption of ASU 2014-01 related to investments in low income housing tax credits.
(b)	Period-end balances for BlackRock.