PNC Financial Services (PNC)

Asset quality remains strong

PITTSBURGH, Oct. 18, 2007 – The PNC Financial Services Group, Inc. (NYSE: PNC) today reported net income of $407 million, or $1.19 per diluted share, for the third quarter of 2007, and $1.29 billion, or $3.85 per diluted share, for the first nine months. In the third quarter of 2006, PNC reported net income of $1.5 billion, or $5.01 per diluted share, and in the second quarter of 2007 the company reported $423 million, or $1.22 per diluted share. Net income for the first nine months of 2006 was $2.2 billion, or $7.46 per diluted share. The 2006 periods included a $1.3 billion after-tax gain, or $4.36 per diluted share, from the BlackRock/Merrill Lynch Investment Managers (MLIM) transaction.

“We delivered strong earnings in the third quarter during a time of extreme market volatility. These results validate our diversified, fee-based business model and moderate risk profile, which continued to generate high-quality revenue streams,” said PNC Chairman and Chief Executive Officer James E. Rohr. “Last month we successfully completed the systems conversion of the Mercantile banks, integrating more than 500,000 consumer accounts. This investment in our distribution capabilities positions PNC better to deliver our products and services to a growing and wealthy market.”

On an adjusted basis, PNC earned net income of $469 million, or $1.37 per diluted share, for the third quarter of 2007 compared with $380 million, or $1.28 per diluted share, for the third quarter of 2006 and $434 million, or $1.25 per diluted share, for the prior quarter. Adjusted net income grew 23 percent over third quarter 2006 and was positively impacted by the Mercantile Bankshares Corporation acquisition. In the linked quarter comparison, adjusted net income increased as a result of growth in noninterest income and net interest income somewhat offset by higher noninterest expense and provision for credit losses. Adjustments used in some period-to-period comparisons are explained below.

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PNC Reports Third Quarter Diluted EPS of $1.19 and Adjusted EPS of $1.37 – Page 2

For the first nine months of 2007, the company earned adjusted net income of $1.34 billion, or $4.00 per diluted share, compared with adjusted net income of $1.12 billion, or $3.77 per diluted share, for the first nine months of 2006. Adjusted net income increased 19 percent over the 2006 period. Third and second quarter and year-to-date 2007 adjusted net income exclude the net effects after tax of PNC’s BlackRock long-term incentive plan (LTIP) shares obligation and after-tax integration costs. Third quarter and first nine months of 2006 adjusted net income exclude the gain from the BlackRock/MLIM transaction, $158 million after-tax losses, or $.53 per diluted share, from repositioning PNC’s securities and mortgage loan portfolios, and after-tax integration costs.

To help to better understand trends at PNC, some of the period-to-period comparisons in this release are presented on an adjusted basis. References to adjusted amounts in this release reflect, as applicable, the following types of adjustments: (1) adjusting 2006 periods as if we had recorded our BlackRock investment on the equity method prior to its deconsolidation on September 29, 2006; (2) adjusting to exclude the BlackRock/MLIM transaction gain in the third quarter of 2006, the net effects of PNC’s BlackRock LTIP shares obligation in all 2007 periods, integration costs in all periods, and losses on balance sheet repositioning in the third quarter of 2006; and (3) adjusting, as appropriate, for the tax impact of these adjustments. Details of all adjustments, including reconciliations to reported results under generally accepted accounting principles (GAAP), are included in the Consolidated Financial Highlights section of this release. This section also includes a reconciliation of taxable-equivalent net interest income to net interest income as reported under GAAP.