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Bank of America Fourth Quarter 2006 Results Ken Lewis Chairman, CEO and President Joe Price Chief Financial Officer January 23, 2007

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Page 1: Fourth Quarter 2006 Earnings Presentation

Bank of America Fourth Quarter 2006 Results

Ken LewisChairman, CEO and President

Joe PriceChief Financial Officer

January 23, 2007

Page 2: Fourth Quarter 2006 Earnings Presentation

2

Forward Looking StatementsThis presentation contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and related actions by the United States abroad may adversely affect the company’s businesses and economic conditions as a whole; 5) changes in the interest rate environment reduce interest margins and impact funding sources; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) changes in accounting standards, rules or interpretations, 10) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; 11) mergers and acquisitions and their integration into the company; and 12) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at www.sec.gov.

Page 3: Fourth Quarter 2006 Earnings Presentation

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Important Presentation Format Information

• Information included in the following slides is presented in a proforma format for the total corporation and the Global Consumer & Small Business Bank to include MBNA in all 2005 periods to provide a clearer picture of growth other than acquisitions. Information that is presented on a proforma basis is also reported on a GAAP basis in the Appendix

• Certain prior period amounts have been reclassified to conform to current period presentation

Page 4: Fourth Quarter 2006 Earnings Presentation

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Summary Earnings Statement –Annual Comparison

Proforma 1

% ChangeGAAP($ in millions)

1 Proforma results include MBNA

2006 2005 2005Core net interest income (FTE) $ 34,164 $ 32,925 4 % $ 29,631Market-based net interest income 1,651 1,938 1,938Net interest income (FTE) 35,815 34,863 3 % 31,569Noninterest income 38,432 32,647 18 % 25,354Total revenue (FTE) 74,247 67,510 10 % 56,923Provision for credit losses 5,010 5,082 (1 %) 4,014Gains (losses) on sales of debt securities (443) 1,084 NM 1,084Noninterest expense (excl merger charges) 34,792 34,411 1 % 28,269

Merger charge 805 1,179 412Noninterest expense 35,597 35,590 28,681Pre-tax income 33,197 27,922 25,312Income tax expense 12,064 9,765 8,847Net income 21,133 18,157 16 % 16,465Merger & restructuring charges (after-tax) 507 771 275Net Income before merger charges $ 21,640 $ 18,928 14 % $ 16,740

Diluted EPS reported $ 4.59 $ 4.04Merger charge impact .11 .07Diluted EPS (excl. merger charge) 4.70 4.11Impact of intangibles amortization .24 .13

Page 5: Fourth Quarter 2006 Earnings Presentation

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2006 Highlights• Earnings of $21.6 billion before merger charges, 14% increase over

proforma 2005

• Double digit revenue growth led by strong noninterest income and modest net interest income gains

• Focus on expense management produced strong operating leverage

• Global Consumer & Small Business earnings grew 19% over proforma 2005

• Capital Markets & Advisory Services revenues rose 21% over 2005

• Total consumer franchise unit sales climbed 7% over 2005 to 44.4 million

• Assets under management again reached new highs increasing to $542.9 billion

• Securities gains declined $1.5 billion from 2005 levels

• Credit quality remains stable

• Strong capital position

Page 6: Fourth Quarter 2006 Earnings Presentation

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2006 Business Results

16 %$ 2,976$ 21,13310 %$ 6,737 $ 74,247Total

NM778767 NM1,491 2,086 All Other

2 %55 2,403 6 %410 7,779 Global Wealth &Investment Mgmt

6 %358 6,792 10 %1,992 22,691 Global Corporate &Investment Bank

19 %$ 1,785$ 11,171 7 %$ 2,844$ 41,691 Global Consumer& Small Business

% ChangeAmt.2006% ChangeAmt. 2006Change vs. Proforma1 2005 Change vs. Proforma1 2005

($ in millions) REVENUE (FTE) EARNINGS

1 Proforma results include MBNA

Page 7: Fourth Quarter 2006 Earnings Presentation

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Achieving Growth in a Challenging Environment

2005 2006

Revenue growth (FTE) 5 % 7 %

Net interest income (FTE) 1 % 1 %

Noninterest income 12 % 16 %

Expense growth: - 1 %

(excl. merger charges)

Credit costs 12 % (16 %)

Securities gains/(losses) (39 %) NM

Achieved While Completing 2 of Industry’s Largest Acquisitions

$3.75 $4.11$4.70

2004 2005 2006

2 Excludes merger and restructuring charges of $.11, $.07 and $.11in 2004, 2005 and 2006, respectively

Proforma highlights on a managed basis 1

Diluted EPS excluding merger and restructuring charges 2

1 Managed basis treats securitized loan receivables as if they were still on the balance sheet and presents the earnings on the sold loan receivables as if they were not sold. Managed Noninterest Income includes the impact of the gains recognized on securitized loan principal receivables in accordance with SFAS No. 140.

Page 8: Fourth Quarter 2006 Earnings Presentation

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Summary Earnings Statement –4th Quarter Comparisons

Proforma 1

% Change

1 Proforma results include MBNA

($ in millions) GAAP4Q06 4Q05 4Q05

Core net interest income (FTE) $ 8,469 $ 8,484 - % $ 7,681Market-based net interest income 486 421 421Net interest income (FTE) 8,955 8,905 1 % 8,102Noninterest income 9,866 7,673 29 % 5,951Total revenue (FTE) 18,821 16,578 14 % 14,053Provision for credit losses 1,570 1,697 (7 %) 1,400Gains (losses) on sales of debt securities 21 71 NM 71Noninterest expense (excl merger charges) 8,849 8,996 (2 %) 7,261Merger charge 244 62 59Noninterest expense 9,093 9,058 7,320Pre-tax income 8,179 5,894 5,404Income tax expense 2,923 1,983 1,830Net income 5,256 3,911 34 % 3,574Merger & restructuring charges (after-tax) 154 42 40Net Income before merger charges $ 5,410 $ 3,953 37 % $ 3,614

Diluted EPS reported $ 1.16 $ .88 Merger charge impact .03 .01Diluted EPS (excl. merger charge) 1.19 .89Impact of intangibles amortization .06 .03

Page 9: Fourth Quarter 2006 Earnings Presentation

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Summary Earnings Statement –4th Quarter Comparison($ in millions)

4Q06 3Q06 $ Change % ChangeCore net interest income (FTE) $ 8,469 $ 8,519 $ (50) (1 %)Market-based net interest income 486 375Net interest income (FTE) 8,955 8,894 61 1 % Noninterest income 9,866 10,067 (201) (2 %)Total revenue (FTE) 18,821 18,961 (140) (1 %)Provision for credit losses 1,570 1,165 405 35 %Gains (losses) on sales of debt securities 21 (469) 490 NM Noninterest expense (excl merger charges) 8,849 8,594 255 3 %Merger charge 244 269 Noninterest expense 9,093 8,863Pre-tax income 8,179 8,464 Income tax expense 2,923 3,048Net income 5,256 5,416 (160) (3 %)Merger & restructuring charges (after-tax) 154 169 Net Income before merger charges $ 5,410 $ 5,585 (175) (3 %)

Diluted EPS reported $ 1.16 $ 1.18Merger charge impact .03 .04Diluted EPS (excl. merger charge) 1.19 1.22Impact of intangibles amortization .06 .07

Page 10: Fourth Quarter 2006 Earnings Presentation

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4Q06 3Q06 $ Change % ChangeReported net interest income (FTE) $ 8,955 $ 8,894 $ 61 1 %Less: Market based NII 486 375 111 Core net interest income (FTE) 8,469 8,519 (50) (1 %) Impact of securitizations 1,850 1,760 90Core NII – Managed Basis $10,319 $10,279 $ 40 - %

Avg. earning assets $ 1,299,461 $1,302,366 $ (2,905) - % Market based earning assets 405,763 375,960 29,803 8 % Impact of securitizations 100,786 98,722 2,064 2 %

Reported net interest yield 2.75 % 2.73 % 2 bpsCore net interest yield 3.78 % 3.67 % 11 bpsManaged net interest yield 4.14 % 4.00 % 14 bps

Linked Quarter Net Interest Income & Yield

Net Interest Income($ in millions)

• Core net interest income (on a held basis) down slightly from 3Q06 Impact from sale of Brazilian operations - $110 mmBenefit of loan activity offset by continuing shift in deposit mix

• Market based net interest income increased as a result of higher customer related trading assets • Core net interest yield benefited from prior quarter reduction in investment securities

Page 11: Fourth Quarter 2006 Earnings Presentation

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Net Interest Income – Managed Sensitivity

Managed Net interest income impact for next 12 months

Forward curve interest rate scenarios @12/31/06 @9/30/06

+ 100 bp parallel shift $ (557) $ (171)

- 100 bp parallel shift 770 544

Flattening scenario from forward curve

+ 100 bp flattening on short end (687) (304)

Steepening scenario from forward curve

+ 100 bp steepening on long end 138 132

($ in millions)

Page 12: Fourth Quarter 2006 Earnings Presentation

First Rolling 12 MonthsDecember 31, 2006

Bank of AmericaNII Sensitivity on a Managed Basis

FF: 2.7510-Y: 4.78

FF: 1.7510-Y: 4.45NII ∆: 299

S

-300

-200

-100

0

100

200

300

-300 -200 -100 0 100 200 300

Change in 10-yr Swap

Cha

nge

in 1

-mo

Lib

or

Curve Steepeners

Curve Flatteners

Year 1

NII ∆: -557

NII ∆: 770

FF: 4.85 10-Y: 6.19 NII ∆: 138

FF: 3.85 10-Y: 5.19 NII ∆: 971

NII ∆: 1,299

(C)

(D)

(H)

(S)

(B)

(J)

FF: 5.25 10-Y: 5.19 NII ∆: -269

NII ∆: -989

FF: 4.85 10-Y: 4.19 NII ∆: -192

FF: 4.85 10-Y: 5.19

(G)

FF: 5.85 10-Y: 5.19 NII ∆: -687

(E)

FF: 2.85 10-Y: 4.19

NII ∆: 1,735

(F)

FF: 6.85 10-Y: 6.19

NII ∆: -1,083

(I)

(K)

As of DECEMBER 31, 2006

Page 13: Fourth Quarter 2006 Earnings Presentation

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As of SEPTEMBER 30, 2006

Page 14: Fourth Quarter 2006 Earnings Presentation

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Global Consumer & Small Business Banking (GCSB)Change from

Proforma 4Q051 3Q064Q06 Amt. % Amt. %

Net interest income (FTE) $ 5,312 $ 146 3 % $ 69 1 %Noninterest income 5,317 641 14 % 117 2 %Total revenue (FTE) 10,629 787 8 % 186 2 %Provision expense 1,752 242 16 % 608 53 %Securities gains - 1 NM - - %Noninterest expense 4,873 (68) (1 %) 143 3 %Pre-tax income 4,004 614 18 % (565) (12 %)Income tax expense 1,477 267 (203) Net income $ 2,527 $ 347 16 % $(362) (13 %)

ROE 16.27 % 219 bps (215 bps)Efficiency ratio 45.84 % (436 bps) 53 bps

• Net income up 16% over 4Q05 to $2.5 billion, but down 13% vs. 3Q06 • Card services earnings increased 84% from 4Q05 • Home equity earnings improved 12% from 4Q05 • Product sales increased 13% over 4Q05 to 10.7 million • E-commerce channel becoming increasingly important sales channel• Credit costs continue to season and normalize

1 Proforma results include MBNA

($ in millions)

Page 15: Fourth Quarter 2006 Earnings Presentation

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Change fromProforma 4Q051 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 2,489 $ 119 5 % $ 27 1 %Noninterest income 1,899 215 13 % (13) (1 %)Total revenue (FTE) 4,388 334 8 % 14 - %Provision expense 56 8 17 % 5 10 %Noninterest expense 2,360 308 15 % 92 4 %Pre-tax income 1,972 18 1 % (83) (4 %)Income tax expense 728 31 (27)Net income $ 1,244 $ (13) (1%) $ (56) (4 %)

Debit purchase volume $ 45.1 b $ 5.5 b 14 % $ 2.3 b 5 %Net new retail checking accts 363 kNet new retail savings accts 82 k

1 Proforma results include MBNA

Deposits (GCSB)

• #1 deposit market share in US with largest branch and ATM network• #1 debit market share with $169 billion in full year 2006 purchase volume• #1 online banking presence with 21.3 million customers• #1 online bill pay with 11.1 million customers paying $50.6 billion in bills in the quarter

($ in millions)

Page 16: Fourth Quarter 2006 Earnings Presentation

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Deposits Business Metrics (GCSB) - ProformaTrend of deposit indicators:

4Q06 3Q06 4Q05 1

Average balances (in billions)Checking $123.5 $124.8 $125.9Savings 30.0 31.2 31.9MMS 67.4 70.3 78.4CDs & IRAs 94.3 92.6 85.6Foreign & Other 10.5 11.5 11.2

Total GCSB deposits 325.7 330.4 333.0GWIM and Business Banking deposits 2 153.4 147.5 149.7Total retail deposit balances $479.1 $477.9 $482.7

Deposit SpreadsChecking 4.26 % 4.23 % 4.16 %Savings 3.68 3.42 3.53MMS 3.25 2.87 2.50 CDs & IRAs 1.11 1.20 1.01Foreign & Other 4.30 4.08 3.50

Total GCSB deposits 3.07 3.00 2.86

1 Proforma results include MBNA2 Retail deposit balances in business segments other than GCSB

Page 17: Fourth Quarter 2006 Earnings Presentation

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Retail Deposits & MMMF Cumulative Growth –January 2004 – December 2006

0%

5%

10%

15%

20%

Jan'04

Apr'04

Jul'04

Oct'04

Jan'05

Apr'05

Jul'05

Oct'05

Jan'06

Apr'06

Jul'06

Oct'06

Combined Retail Deposits and Money Funds –Cumulative Balance Growth

Industry BAC

Cum

ulat

ive

Bala

nces

Gro

wth 17.9%

17.2%

Note: Columbia balances for Dec’03-Dec’04 assumed to grow at market rate.Sources: Fed H6

• Executing on an enterprise-wide strategy that takes a broader view of the Deposits business which includes retail money market mutual funds

• On a combined basis since January 2004, growth in deposits has outperformed the industry by 0.7%

– Columbia Money Fund balance has grown $9B or 26% compared to a gain of 7.5% for the industry

– Bank of America has grown retail deposits by nearly $66B while maintaining firm price discipline – recent growth trajectory has been steepening

-20%

-10%

0%

10%

20%

30%

40%

Jan'04

Apr'04

Jul'04

Oct'04

Jan'05

Apr'05

Jul'05

Oct'05

Jan'06

Apr'06

Jul'06

Oct'06

Retail Money Market Mutual Funds –Cumulative Balance Growth

Cum

ulat

ive

Bala

nces

Gro

wth

26.3%

7.5%

0%

5%

10%

15%

20%

Jan'04

Apr'04

Jul'04

Oct'04

Jan'05

Apr'05

Jul'05

Oct'05

Jan'06

Apr'06

Jul'06

Oct'06

Retail Deposits –Cumulative Balance Growth

Cum

ulat

ive

Bala

nces

Gro

wth 18.8%

16.9%

Page 18: Fourth Quarter 2006 Earnings Presentation

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Change fromProforma 4Q051 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $4,190 $ 228 6 % $ 93 2 %Noninterest income 2,289 (2) - % 148 7 %Total revenue (FTE) 6,479 226 4 % 241 4 %Credit costs 2,608 (286) (10 %) 668 34 %Noninterest expense 2,011 (356) (15 %) 55 3 %Pre-tax income 1,860 868 88 % (482) (21 %)Income tax expense 686 332 (176)Net income $1,174 $ 536 84 % $(306) (21 %)

Purchase volume $ 69.2 b $ 2.3 b 3 % $ 2.0 b 3 %Total average loans 197.8 b 12.5 b 7 % 4.4 b 2 %Card services net losses 2,218 (1,074) (33 %) 216 11 %Losses as a % of loans 4.45 % (260 bps) 34 bps30-day delinquency 5.16 % 120 bps 26 bpsRisk adj. margin 8.55 % 217 bps (14 bps)

1 Proforma results include MBNA

Card Services (GCSB)* – Managed View

#1 consumer credit card issuer in the US

and the UK.

($ in millions)

* Card Services financials includes US consumer and business card, unsecured lending, international card operations and merchant services.

Page 19: Fourth Quarter 2006 Earnings Presentation

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Change from4Q05 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 2,624 $ (147) (5 %) $ (19) (1 %)Noninterest income 2,774 587 27 % (598) (18 %)Total revenue (FTE) 5,398 440 9 % (617) (10 %)Provision expense (108) (205) NM (130) NMSecurities gains 19 (76) (80 %) 5 36 %Noninterest expense 3,045 78 3 % 80 3 %Pre-tax income 2,480 491 25 % (562) (18 %)Income tax expense 909 202 (211)Net income $ 1,571 $ 289 23 % $(351) (18 %)

ROE 15.33 % 334 bps (330 bps)Efficiency ratio 56.41 % (343 bps) 711 bps • Net income up 23% over 4Q05 to $1.6 billion, but down 18% vs. 3Q06 • Revenue in 3Q06 included $720 mm gain from sale of Brazil operations• 4Q06 includes $165 mm gain from sale of Asia Commercial Banking business• Average loans are up 8% vs. 4Q05 to $247 billion• Capital Markets & Advisory Services revenue increased 30% vs 4Q05 and up 7% vs. 3Q06• Asset quality remains stable

Global Corporate & Investment Banking (GCIB)($ in millions)

Page 20: Fourth Quarter 2006 Earnings Presentation

20

Change from4Q05 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $1,138 $ (56) (5 %) $ 13 1 %Noninterest income 250 29 13 % (18) (7 %)Total revenue (FTE) 1,388 (27) (2 %) (5) - %Provision expense (85) (292) (141 %) (138) (260 %)Securities gains 5 5 NM 2 67 %Noninterest expense 550 27 5 % 3 1 %Pre-tax income 928 243 35 % 132 17 %Income tax expense 343 97 60Net income $ 585 $ 146 33 % $ 72 14 %

Risk mitigation $ (63) $ (27) (75 %) $ (27) (75 %)Average loans 221.2 b 17.2 b 8 % 2.7 b 1 %

Business Lending (GCIB)($ in millions)

• #1 middle market lender with clients representing more than 1 out of 3 middle market companies within our franchise.

• Industry leading positions across Commercial Real Estate lending, Business Capital, Business Banking and Leasing

• Total GCIB client roster includes 98% of US Fortune 500 and 80% of global Fortune 500

Page 21: Fourth Quarter 2006 Earnings Presentation

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Change from4Q05 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 486 $ 65 15 % $ 111 30 %Noninterest income 1,522 400 36 % 28 2 %Total revenue (FTE) 2,008 465 30 % 139 7 %Provision expense 6 18 NM 9 NMSecurities gains 10 (22) (69 %) 2 25 %Noninterest expense 1,401 121 9 % 9 1 %Pre-tax income 611 304 99 % 123 25 %Income tax expense 226 119 46Net income $ 385 $ 185 93 % $ 77 25 %

Investment banking fees $ 756 $ 209 38 % $ 202 36 %Debt u/w fees 549 159 41 % 132 32 %Equity u/w fees 84 - - % 32 62 %Advisory fees 123 50 68 % 38 45 %

Sales & trading income 1,262 234 23 % (60) (5 %)Fixed income 907 118 15 % (105) (10 %)Equity 355 116 49 % 45 15 %

Avg trading related assets 358.4 b 45.2 b 14 % 21.6 b 6 %S&T revenue volatility 12.1 (.1) (1 %) 2.8 30 %

Capital Markets and Advisory Services (GCIB)($ in millions)

Page 22: Fourth Quarter 2006 Earnings Presentation

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Change from4Q05 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 970 $ 8 1 % $ (14) (1 %)Noninterest income 710 72 11 % (21) (3 %)Total revenue (FTE) 1,680 80 5 % (35) (2 %)Provision expense ( 2) (2) NM (1) NMNoninterest expense 818 28 4 % 9 1 %Pre-tax income 864 54 7 % (43) (5 %)Income tax expense 320 28 (15)Net income $ 544 $ 26 5 % $ (28) (5 %)

Average deposits $ 146.3 b $(2.9 b) (2 %) $ 5.1 b 4 % Deposit spread 2.54% 11 bps (10 bps)

Treasury Services (GCIB)($ in millions)

• Voted “Best Bank Cash & Working Capital Management North America” and “Best Bank Risk Management”(Treasury Management International, 2006)

•Voted “Best Bank for Payments and Collections in North America” and “Best Liquidity Management Bank in North America” (Global Finance Magazine, 2006 and 2005)

•Voted “Best for Industry Expertise and Knowledge” and “Best Personalized Client Service” by Euromoney as part of the Customer Satisfaction section of the publication’s Awards for Excellence 2006

Page 23: Fourth Quarter 2006 Earnings Presentation

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Global Wealth & Investment Management (GWIM)Change from

4Q05 3Q064Q06 Amt. % Amt. %

Net interest income (FTE) $ 971 $ (30) (3 %) $ 28 3 %Noninterest income 1,017 127 14 % 92 10 %Total revenue (FTE) 1,988 97 5 % 120 6 %Provision expense 2 1 NM 3 NMNoninterest expense 1,030 82 9 % 38 4 %Pre-tax income 956 14 1 % 79 9 %Income tax expense 354 18 30Net income $ 602 $ (4) (1 %) $ 49 9 %

ROE 22.80 % 83 bps 112 bpsEfficiency ratio 51.80 % 171 bps (132 bps)Financial advisors 1,954 59 51Client managers 2,395 291 103

• Net income stable compared to 4Q05 and increased 9% over 3Q06 • Assets under management increased 13% from 4Q05 and 5% over 3Q06 to $542.9 billion• Average loans increased 14% on an annualized basis from 3Q06• Average deposits increased 18% on an annualized basis from 3Q06• $0 online equity trading program - early results proving successful

($ in millions)

Page 24: Fourth Quarter 2006 Earnings Presentation

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Columbia Management (GWIM)Change from

4Q05 3Q064Q06 Amt. % Amt. %

Net interest income (FTE) $ (3) $ (1) (50 %) $ 11 79 %Noninterest income 422 68 19 % 32 8 %Total revenue (FTE) 419 67 19 % 43 11 %Noninterest expense 274 41 18 % 23 9 %Pre-tax income 145 26 22 % 20 16 %Income tax expense 53 10 7Net income $ 92 $ 16 21 % $ 13 16 %

Investment & brokerage $417 $ 72 21 % $ 43 11 %AUM 433.4 b 72.2 b 20 % 22.6 b 6 %

($ in millions)

• In a year-end ranking of firms, with more than 10 funds and $10 billion in AUM, our equity funds were top performers for the 1-year period ended 12/31/06 and placed 1st out of 52 firms, based on Morningstar percentile rankings. (1)

• On a 3-year AUM weighted basis, 88% of our equity funds were in the top 2 performance quartiles compared to the peer group. (2)

• Our Money Market Fund complex maintained a 6th place ranking among its Global peer group. (3)

• Money Market Fund’s posted strong performance with 91% of the Fund’s placing in the top 2 performance quartiles compared to their peer group. (3)

Page 25: Fourth Quarter 2006 Earnings Presentation

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Global Wealth & Investment Management (GWIM)

214.6 229.4 224.1 231.5 247.7

82.9 82.1 83.7 87.1 86.7

184.8 182.4 192.3 198.4 208.5

0

100

200

300

400

500

600

4Q05 1Q06 2Q06 3Q06 4Q06

Equity Fixed Income Money Mkt/ Other

345 364 377 374 417

243 252 268 248246

168179

188 18320236

3837 38

38

0

300

600

900

4Q05 1Q06 2Q06 3Q06 4Q06Columbia Mgmt Private BankPremier Banking Other

Assets Under Management

$ in billions

Investment & Brokerage Service Fees

$ in millions

% of AUM in 4 or 5 Star Funds2

56% 56% 59% 61% 57%

% of AUM in 1st and 2nd quartiles4

78% 82% 85% 88% 73%

$517.0$500.1$493.9$482.3 $792 $833 $870 $843$542.9 $903

Page 26: Fourth Quarter 2006 Earnings Presentation

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Global Wealth & Investment Management (GWIM)

Footnotes for Page 24 & 25

(1)Source: Columbia Management based on Morningstar data. Rankings include actively managed equity funds but exclude index and Fund of Funds. Share classes used may have limited eligibility and may not be available to all investors.

(2)Results shown are defined by Columbia Management’s calculation of its percentage of assets under management in the top two quartiles of categories based on Morningstar (Equity categories), Lipper ( Fixed Income categories) iMoneyNet (Money Market categories). The category percentile rank was calculated by ranking the three year gross return of share classes within the categories stated above . The assets of the number of funds within the top 2 quartile results were added and then divided by Columbia Managements total assets under management. Had fees been included, rankings would have been lower. Past performance is no guarantee of future results. The share class earning the ranking may have limited eligibility and may not be available to all investors.

(3)The Money Market share class earning the ranking may have limited eligibility and may not be available to all investors. Money Market peer group rankings were provided by iMoneyNet.

(4)Results shown are defined by Columbia Management’s calculation using Morningstar’s Overall Rating criteria for 4 & 5 star rating. The assets under management of the Columbia Funds that had a 4 & 5 star rating were totaled then divided by the assets under management of all the funds in the ranking.

©2006 by Morningstar, Inc. All rights reserved. The information contained herein is the proprietary information of Morningstar, Inc., may not be copied or redistributed for any purpose and may only be used for noncommercial, personal purposes. The information contained herein is not represented or warranted to be accurate, correct, complete or timely. Morningstar, Inc. shall not be responsible for investment decisions, damages or other losses resulting from the use of this information. Past performance is no guarantee of future results.

Page 27: Fourth Quarter 2006 Earnings Presentation

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Change from4Q05 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 48 $ 61 NM $ (17) NMNoninterest income 758 836 NM 188 NMTotal revenue (FTE) 806 897 NM 171 NMProvision expense (76) (87) NM (76) NMSecurities gains 2 25 NM 485 NMMerger & restruct. exp. 244 185 NM (25) NMNoninterest expense (99) (160) NM (6) NMPre-tax income 739 984 NM 763 NMIncome tax expense 183 365 259 Net income $ 556 $619 NM $ 504 NM

Components of equity investment gains:Principal investing $ 547 $ 143 35 % $ (57) (9 %)Corporate & strategic 484 395 NM 401 NM

Total All Other equity gains 1,031 538 109 % 344 50 %Other business segments 36 8 29 % 18 100 %Total corp equity gains $1,067 $ 546 105 % $ 362 51 %

All Other($ in millions)

Page 28: Fourth Quarter 2006 Earnings Presentation

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Capital Strength($ in millions) 4Q06 3Q06 4Q05

Tier 1 Capital $ 91,065 $ 88,085 $ 74,375Risk Weighted Assets 1,054,555 1,039,283 901,469Tier 1 Capital Ratio 8.64 % 8.48 % 8.25 %Total Capital Ratio 11.88 % 11.46 % 11.08 %Tier 1 Leverage Ratio 6.36 % 6.16 % 5.91 %Tangible Equity $ 60,188 $ 58,021 $ 52,985Tangible Equity Ratio 4.35 % 4.22 % 4.26 %Tangible Equity Ratio Adj for OCI 4.86 % 4.69 % 4.82 %Months to required funding- Parent Co. 24 22 26

Earnings Returned to ShareholdersDividends paid $2,503 $2,536 $2,012Cost of net share repurchases 2,538 2,082 933Dividends & net repur. as % of earnings 96 % 85 % 82 %Dividend yield 4.20 % 4.18 % 4.33 %

Page 29: Fourth Quarter 2006 Earnings Presentation

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Short-term Outlook

• Continuing flat yield curve environment• Expect GDP growth around 3%• Core net interest income growth in low single digits• Reduced equity investment gains• Credit costs continue to season and normalize• Positive operating leverage

Page 30: Fourth Quarter 2006 Earnings Presentation

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Long-term Targets

• Global Consumer and Small Business Banking 6 – 9%– Card Services 10%+– Deposits high single digit – Consumer real estate businesses high single digit

• Global Corporate and Investment Banking 7 – 10%– Business Lending steady mid single digits– Treasury Services high single digits – Capital Markets and Advisory Services is

10% plus but more market sensitive• Global Wealth and Investment Management 7 – 10%

– Columbia Management low teens but more market sensitive

– Premier Banking and Investments high single digits– Improved Private Banking

Earnings Growth

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Summary

• Anticipating a soft landing for economy

• Expect continuing strength in consumer banking

• Effectively managing headwind of interest rate yield curve

• Leadership positions in key retail businesses provide strong base for growth

• Consumer credit losses continue to season and trend toward more “normalized”levels

• Commercial asset quality continues to be good

• Business lending profits continue to be hampered by macro conditions but Bank of America positioned well

• Continued investments in Global Corporate & Investment Banking and Premier Banking and Investments platforms working well

• Capital levels remain strong

• Remain committed to shareholder value

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APPENDIX

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2006 Business Results - GAAP

28 %$ 4,668$ 21,13330 %$ 17,324 $ 74,247Total

NM23767 NM1,402 2,086 All Other

4 %87 2,403 6 %463 7,779 Global Wealth &Investment Mgmt

6 %408 6,792 10 %2,091 22,691 Global Corporate &Investment Bank

59 %$ 4,150$ 11,171 47 %$ 13,368$ 41,691 Global Consumer& Small Business

% Change$ Amt.2006% Change$ Amt. 2006Change vs. 2005 Change vs. 2005

($ in millions) REVENUE (FTE) EARNINGS

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Global Consumer & Small Business Banking (GCSB) -GAAP

Change from4Q05 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 5,312 $ 969 22 % $ 69 1 %Noninterest income 5,317 2,365 80 % 117 2 %Total revenue (FTE) 10,629 3,334 46 % 186 2 %Provision expense 1,752 461 36 % 608 53 %Securities gains - 1 NM - - %Noninterest expense 4,873 1,588 48 % 143 3 %Pre-tax income 4,004 1,286 47 % (565) (12 %)Income tax expense 1,477 508 (203) Net income $ 2,527 $ 778 44 % $(362) (13 %)

ROE 16.27 % (578 bps) (215 bps)Efficiency ratio 45.84 % 81 bps 53 bps

($ in millions)

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Change from4Q05 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $2,489 $ 153 7 % $ 27 1 %Noninterest income 1,899 215 13 % (13) (1 %)Total revenue (FTE) 4,388 368 9 % 14 - %Provision expense 56 8 17 % 5 10 %Noninterest expense 2,360 308 15 % 92 4 %Pre-tax income 1,972 52 3 % (83) (4 %)Income tax expense 728 44 (27)Net income $1,244 $ 8 1 % $ (56) (4 %)

Debit purchase volume $ 45.1 b $ 5.5 b 14 % $ 2.3 b 5 %Net new retail checking accts 363 kNet new retail savings accts 82 k

Deposits (GCSB) - GAAP($ in millions)

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Deposits Business Metrics (GCSB) - GAAPTrend of deposit indicators:

4Q06 3Q06 4Q05Average balances (in billions)Checking $ 123.5 $ 124.8 $ 125.5Savings 30.0 31.2 31.9MMS 67.4 70.3 71.9CDs & IRAs 94.3 92.6 69.4Foreign & Other 10.5 11.5 7.9

Total GCSB deposits $ 325.7 $ 330.4 $ 306.6

Deposit SpreadsChecking 4.26 % 4.23 % 4.16 %Savings 3.68 3.42 3.53MMS 3.25 2.87 2.69CDs & IRAs 1.11 1.20 1.19Foreign & Other 4.30 4.08 4.19

Total GCSB deposits 3.07 3.00 3.06

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Change from4Q05 GAAP 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 4,190 $2,800 201 % $ 93 2 %Noninterest income 2,289 1,371 149 % 148 7 %Total revenue (FTE) 6,479 4,171 181 % 241 4 %Credit costs 2,608 1,354 108 % 668 34 %Noninterest expense 2,011 1,300 183 % 55 3 %Pre-tax income 1,860 1,517 442 % (482) (21 %)Income tax expense 686 564 (176)Net income $ 1,174 $ 953 431 % $(306) (21 %)

Purchase volume $ 69.2 b $ 3.6 b 6 % $ 2.0 b 3 %Total average loans 197.8 b 135.4 b 217 % 4.4 b 2 %Card services net losses 2,218 749 51 % 216 11 %Losses as a % of loans 4.45 % (490 bps) 34 bps30-day delinquency 5.16 % 103 bps 26 bpsRisk adj. margin 8.55 % 321 bps (14 bps)

Card Services (GCSB)* – Managed View($ in millions)

* Card Services financials includes US consumer and business card, unsecured lending, international card operations and merchant services.

#1 consumer credit card issuer in the US

and the UK.

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Change fromProforma 4Q051 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 2,269 $ 136 6 % $ 45 2 %Noninterest income 3,187 560 21 % 81 3 %Total revenue (FTE) 5,456 696 15 % 126 2 %Provision expense 1,585 184 13 % 553 54 %Noninterest expense 2,011 (356) (15 %) 55 3 %Pre-tax income 1,860 868 88 % (482) (21 %)Income tax expense 686 332 (176)Net income $ 1,174 $ 536 84 % $(306) (21 %)

Total average loans $ 98.0 b $ 4.8 b 5 % $2.0 b 2 %Card services net losses 1,195 (604) (34 %) 101 9 %Losses as a % of loans 4.84 % (282 bps) 32 bps

1 Proforma results include MBNA

Card Services (GCSB)* – Held View

#1 consumer credit card issuer in the US

and UK.

($ in millions)

* Card Services financials includes US consumer and business card, unsecured lending, international card operations and merchant services.

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Change from4Q05 3Q06

4Q06 Amt. % Amt. %Net interest income (FTE) $ 2,269 $ 932 70 % $ 45 2 %Noninterest income 3,187 2,279 251 % 81 3 %Total revenue (FTE) 5,456 3,211 143 % 126 2 %Provision expense 1,585 394 33 % 553 54 %Noninterest expense 2,011 1,300 183 % 55 3 %Pre-tax income 1,860 1,517 442 % (482) (21 %)Income tax expense 686 564 (176)Net income $ 1,174 $ 953 431 % $(306) (21 %)

Total average loans $ 98.0 b $ 38.5 b 65 % $ 2.0 b 2 %Card services net losses 1,195 (211) (15%) 101 9 %Losses as a % of loans 4.84 % (454 bps) 32 bps

Card Services (GCSB)* – Held View (GAAP)

#1 consumer credit card issuer in the US

and UK.

($ in millions)

* Card Services financials includes US consumer and business card, unsecured lending, international card operations and merchant services.

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