Bank of America Growing Relationships

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1 Bank of America Growing Relationships Liam McGee President Global Consumer & Small Business Banking UBS Financial Services Conference May 16, 2006

2 Forward Looking Statements This 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 2

3 The Focus Today Who we are How we run the business Proven results How we will grow 3

4 Bank of America A Diverse Business Mix 1Q06 Earnings of $5.0 Billion Other 2% Global Corporate & Investment Banking 32% Global Consumer & Small Business Banking 54% Global Wealth & Investment Management 12% 4

5 Global Consumer & Small Business Banking Who We Are

6 Who We Are America s Most Convenient Financial Solutions Company Serving 54 million consumer & small business households Through 5,786 banking centers 16,716 ATMs Number 1 online bank 5,000+ affinity relationships In our footprint 76% of U.S. population 93% of Hispanic households 86% of Asians 77% of African-Americans 75% of small businesses Bank of America stores 6

7 Who We Are Leading Market Share 4Q05 Market Share No. 1 Retail deposits 13.5 % No. 1 Online Banking No. 1 Online Bill Pay No. 1 Small Business Banking No. 1 Credit Card 34.6 % 58.6 % 22.4 % 21.5 % No. 1 Debit Card* 15.5 % No. 1 Home equity 8.4 % No. 5 First mortgage 3.3 % No. 2 Merchant Services 16.0 % 7 *2004 Total Purchase volume, The Nilson Report

8 Who We Are Geographic Diversity 1Q06 Earnings of $2.7 billion West 22% Out of Footprint 8% Community Banking 13% Northeast 17% Southwest 16% Southeast 24% Bank of America stores 8 Represents legacy BAC only distribution of earnings

9 Proven Results

10 Proven Results Increased Profitability ($ in billions) Revenue Efficiency Ratio $12.0 $10.0 $8.8 8% growth $9.4 $ % 50% 55% 50% 46% $8.0 1Q2004 1Q2005 1Q % 1Q2004 1Q2005 1Q2006 Net Income $4.0 $3.0 $2.0 19% growth $1.9 $2.4 $2.7 $1.0 $0.0 1Q2004 1Q2005 1Q Pro forma with Fleet, MBNA

11 Proven Results Sales Growth Net New Checking Accounts Net New Savings Accounts 2,063,000 2,300,000 2,594,000 1,852,000 1,192, , , (275,000) Home Equity Production in billions New Store/Online Consumer Credit Cards 2,916, ,250,000 1,565,000 1,784,

12 Proven Results Customer Delight 49.5% 41%

13 Proven Results Growing Quality Customer Relationships Total Household Growth (Pro Forma with Fleet in millions) Multi-product Household Growth 17% Growth 39 9% Growth 45% 33 41% Q04 1Q05 2Q05 3Q05 4Q05 13 Excluding MBNA

14 How We Run The Business

15 How We Run The Business Integrated Operating Model Product Distribution Card Insurance Banking centers Affinity groups Deposits Investments e-commerce ATM channel Mortgage, HELOC, consumer loans Small Business products Mortgage sales force Phone channel 15

16 How We Run The Business Competitive Differentiators National franchise strategy Extensive knowledge from an unparalleled customer base Integrated operating model Enabling us to anticipate customer needs and Innovate 16

17 How We Run The Business Innovation in Products and Services Risk-free CD 17

18 How We Will Grow

19 How We Will Grow Growth Opportunities Market optimization Online banking Channel diversification Mass Market Small Business Credit card Affinity banking Home equity 19

20 How We Will Grow Optimizing Market Opportunities Relative HH Market Share Penetration 1 59% 55% 52% 51% 46% 40% 39% 39% 38% 38% 37% 31% 22% 7% 2% LA Seattle San Fran Miami Boston Phoenix San Diego Dallas Atlanta DC Baltimore Houston NY Philly Chicago Checking Sales Performance LA Seattle San Fran Miami Boston Phoenix San Diego Dallas Atlanta DC Baltimore Houston NY Philly Chicago 20 1 HH penetration equal to HHs with BAC deposit acct. divided by number of HHs in market that hold a deposit acct 2 Sales Performance = Sales Opportunity / BAC Branch Share

21 How We Will Grow Online Banking Growth 19.6 Million Online Banking Active Users 10.1 Million Online Bill Pay Users * 10.1 All Other 59.6% Bank of America Q Q Q Q Bill Pay users Online Bill Pay Market Share Among top 30 most-visited U.S. Web sites #1 among financial institutions 1.76 billion site visits annually 21 *1Q06 includes MBNA

22 How We Will Grow Why Online Banking Is Important Incremental Online Customer Relationship Value* 28% 27% 15% Deposit Balances Loan Balances Profitability 22 *Three years after going online, combined access-only and bill pay customers

23 How We Will Grow Diversifying Distribution and Lowering Costs 48 Channel Diversification Avg. cost Credit Card Origination Costs $113 $98 $ MM 14.3% 68.4% 7.7% 9.6% 32.3MM 8.9% 65.7% 11.9% 13.6% 36.5MM 4.7% 67.8% 14.1% 13.4% Direct Mail Banking Center E-Commerce Other 49% 65% 34% 22% 7% 2% 10% 10% 24% 52% 8% 16% $140 $50 $ E Q06 Product Sales Mix % by Channel (Units MM) 23

24 How We Will Grow Mass Market Small Business Growth Customers & Prospects Bank of America Small Business Customer Penetration Mass Market SBs in footprint 22.0 MM 18.2% 20.8% 22.4% Mass Market SBs Prospects 17.1 MM 22.4% Penetration SBs Banking w/ BAC 4.9 MM

25 How We Will Grow Sales Growth in Mass Market Small Business Products Small Business Product Sales (Thousands) 22% Growth Total Sales 22% Growth Business Credit 79% Online Banking 67% Business Checking 20% Loans 15% Deposits 12% 1Q05 1Q06 Deposit Products Credit Products Online Merchant 25

26 How We Will Grow Driving Top Line and Bottom Line Growth $ in billions Mass Market Small Business Revenue Net Income 19% Growth 41% Growth $0.4 $1.0 $1.2 $0.3 1Q2005 1Q2006 1Q2005 1Q

27 How We Will Grow Mass Market Small Business Credit Opportunity Growing credit share to match market penetration = Additional $20 Billion in balances 22.4% 7% BAC Small Business Credit Market Share BAC Small Business Customer Penetration 27

28 How We Will Grow Card Services Opportunity Card Services transition on target Drive sales growth through all channels Strong early results with affinity card sales Leverage MBNA marketing, judgmental lending & collections best practices International credit card portfolio 28

29 How We Will Grow Credit Card: Leading Position and Performance Top U.S. Credit Card Issuer Leading Industry Growth $153 $139 $114 $73 $54 $44 4.5% 3.5% 1.8% Bank of America JP Morgan Chase Citigroup American Express Capital One Discover Bank of America JP Morgan Chase* Capital One Discover -2.7% Citigroup -3.7% 1 Source: $ in BB; Nilson Report, 50 Largest Bank Credit Issuers in the US 2005; company reports (excludes private label) 2 Source: Company reports * JP Morgan Chase growth rate excludes impact of Sears Canada acquisition 29

30 How We Will Grow Leadership in Affinity Relationships More than 5,000 organizations endorse our products including: 1,400 professional organizations 900 colleges and universities 600 sports related organizations 30

31 How We Will Grow Affinity Sales Early Success Online More than 300 affinity cards now offered on bankofamerica.com 1Q06 results 3x more than expected growth Banking Center Pilot Banking Center applications more than double expected volume 1Q06 sales in pilot program 2x more than expected growth Next Steps Mid-summer national banking center rollout 31

32 How We Will Grow Affinity Banking Propensity to accept multiple endorsed products Affinity and Business Partners 81% endorse 2 or more products 68% endorse 3 or more products Members 20% use multiple endorsed products 32

33 How We Will Grow Engine for Growth: Affinity Banking MBNA Affinity Relationships Bank of America Retail Products and Distribution + = New Affinity Banking Model 33

34 How We Will Grow Home Equity Leader With Room To Grow Growing 8.4% market share to 13.5% (matching retail deposits share) = $43 billion in incremental balances Home Equity Balances ($in billions) $44 $27 $58 #1 $

35 How We Will Grow Leading Intermediary in Customer Cash Flow Cycle Consumers Bank of America Companies Merchants 35 #1 check processor #1 debit card #1 credit cards #1 ATM network #1 Cash processor #1 Cash Management bank #1 Online banking #1 Online billpay #1 home equity lender #1 business lender #2 merchant processor

36 How We Will Grow Credit Solutions Continuum Customer credit needs Secured Credit Card Unsecured Credit Card First Mortgage Home Equity Unsecured Lines Small Business Lending Relationship-based Common Decision Engine 36

37 In Summary Uniquely positioned national franchise Diverse base of earnings Strong track record Leveraging our competitive differentiators Focused on best growth opportunities 37

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