PNC Selling Global Investment Servicing Unit

PNC Financial Services Group (NYSE: PNC) has agreed to sell its global investment servicing unit to BNY Mellon (NYSE: BK) for $2.3 billion in cash.

PRESS RELEASE

The PNC Financial Services Group, Inc. (NYSE: PNC) today announced that it has signed a definitive agreement to sell PNC Global Investment Servicing Inc., a leading provider of processing, technology and business intelligence services to asset managers, broker-dealers, and financial advisors worldwide, to BNY Mellon (NYSE: BK) for $2.3 billion in cash.

Upon completion of the sale, PNC expects to report an after-tax gain of approximately $.5 billion and an increase in Tier 1 common capital of approximately $1.6 billion after the release of capital of $1.1 billion primarily related to goodwill and other intangible assets. As a result, on a pro forma basis, PNC’s Tier 1 common capital ratio at December 31, 2009 would have increased by approximately 70 basis points to an estimated 6.7 percent.

“The sale of PNC Global Investment Servicing is consistent with our focus on disciplined capital management,” said James E. Rohr, chairman and chief executive officer. “Given the changing competitive landscape in the investment servicing industry, we believe this is the proper time to sell the business to capture the full value of PNC Global Investment Servicing. The capital generated from this transaction will position PNC with further flexibility.”

The transaction is estimated to be completed in the third quarter of 2010, subject to regulatory approvals and certain other closing conditions.

“For more than three decades the work of PNC Global Investment Servicing’s dedicated employees has grown the business into a premier provider of fund servicing around the globe,” Rohr continued. “We are pleased that this transaction partners PNC Global Investment Servicing’s clients and employees with an industry leader.”

PNC Global Investment Servicing serviced total fund assets of $2.3 trillion and had 4,450 full-time employees at December 31, 2009.

Citigroup Global Markets Inc. and Morgan Stanley & Co. Incorporated acted as financial advisers and Wachtell, Lipton, Rosen & Katz acted as legal adviser to PNC.

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; asset management and global fund services.