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Growth Opportunities in Global Wealth & Investment ManagementBrian MoynihanPresidentGlobal Wealth & Investment Management
2
Global Wealth & Investment Management is a division of Bank of America Corporation. Banc of America Investment Services, Inc.®, The Private Bank of Bank of America and Columbia Management are all affiliates within Global Wealth & Investment Management.
Premier Banking & Investments TM is offered through Bank of America Premier Banking® and Banc of America Investment Services, Inc.
Banking products are provided by Bank of America, N.A., member FDIC. Investment products:
Banc of America Investment Services, Inc. is a registered broker-dealer, member NASD and SIPC, and a nonbank subsidiary of Bank of America, N.A.
The Private Bank is a unit of Bank of America, N.A.
Columbia Management is the primary investment management division of Bank of America Corporation. Columbia Management entities furnish investment management services and advise institutional and mutual fund portfolios.
The Consulting Services Group is a division of Banc of America Investment Advisors, Inc. (BAIA). BAIA is an SEC-registered investment adviser and wholly-owned subsidiary of Bank of America, N.A.
Ser Are Not FDIC Insured May Lose Value Are Not Bank Guaranteed
3
Global Wealth & Investment Management: Takeaways
• We are a large and profitable competitor in attractive businesses and markets
• Our competitive position and integrated model provides strong growth opportunities
• Our best and most efficient way to grow is to leverage the strength of our franchise
• We are capturing those growth opportunities, but there is much more ahead of us, and we are continuing to invest aggressively to capture it
4
A Sizeable and Profitable Competitor
2006 ($B) Percent change
Revenue1 $7.8 6.3
Net income 2.4 3.8
Assets under mgt. 542.9 12.6
Total client assets 790.3 11.6
Average loans 61.5 13.7
Average deposits2 115.1 (1.9)
Efficiency ratio 51.5% (0.8)
Return on equity 23.2% 0.7
Associates 13,728 7.4
1Includes $851MM deposit NII on migrated balances2Includes $48.4B of cumulative migrated average balances since 2004
5
2006 Revenue Mix and Operating Margins
Premier Banking & Investments1
The Private Bank
ColumbiaManagement
Other
Total Revenue by LOB
27%
20%
5%
Total Revenue by Product
Asset MgtFees 36%
Deposit NII 34%
BrokerageIncome 8%
Residual and Other NII 3%
All Other Income 6%
Loan NII 13%
48%
Line of Business 2006 Revenue 2006 Pre-tax margin
Premier Banking & Investments $3.7B1 57.5%
The Private Bank $2.1B 41.8%
Columbia Management $1.5B 34.5%
1Premier Banking & Investments revenue shown as internally managed, including impact of migration from Consumer Banking.
6
Peer Comparison: Profitability
4Q06 Pre-tax Earnings of Major Competitors
$956
$759
$625$649
$520
$361
$242$249
BAC MER JPM C WB MS AMP NTRS
Pre-Tax Margin 48% 23% 33% 23% 27% 17% 16% 31%
Competitors listed include their respective GWIM-like businesses, based on Bank of America analysis of publicly available earnings reports. Pro forma results reflect adjustments for significant acquisitions along with other one-time items, and eliminate SFAS 123R stock option expenses where necessary.
7
Trends in Asset Management
Asset Management Fees ($MM) Assets Under Management ($B)
433443
457
482494 500
517
543
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
CAGR 14%
645 638 648
697
742
617
713680
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
CAGR 11%
8
Trends in Loan, Deposit and Liquidity Balances
5153
5557
5960
6264
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
116
120118
115 114 114 114
119
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
CAGR 14% CAGR 1%
Loans ($B) Deposits ($B)
Total BAC Liquidity1 Balance ($B)
476.7485.4
491.2 489.3 489.4 492.7487.7
493.8
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
CAGR 2%
1Total liquidity balance includes deposits and Columbia retail money market funds
9
Trends in Brokerage Transactional/Fee-Based Revenue
$593$617
2005 2006
Assets Under Management for all Fee-based Solutions and Accounts for Periods Ending 12/31
Brokerage Revenue ($MM)
(12.7)
10.3
21.3
(0.2)
1Q06 2Q06 3Q06 4Q06
Net New Self Directed Accounts (000)
4%
($B) (accounts)
0
5
10
15
20
25
30
35
2002 2003 2004 2005 20060
20,000
40,000
60,000
80,000
100,000
Assets Accounts
10
Our Go-to-market ModelMass
Affluent Wealthy VeryWealthy
Mid-Market Institutions
LargeInstitutions
Mass Market
NEE
D Family Office, Investment Consulting
Investment & Distribution Policy,
Trustee Services
Asset Management Excellence
Wealth & Legacy
Planning
Banking, Borrowing,
Saving
Integrated Banking &
Investments
Plus…Integrated Banking and InvestmentSecurities Brokerage
Simple Trust
Deposits,Loans
Straightforward Investment Products
Insurance
Plus…Complex Trust
Alternative investments
Specialty Asset Management
Plus…Alternative asset
mgt productsPhilanthropic and
Foundation Services
PTMS / PIMS
Mutual FundsLiquidity
StrategiesSeparate Accounts
Foundation, Charitable GivingTrustee Services
Investment ConsultingRetirement
Administration
PRO
DU
CTS
To $100K $100K - $3MM
INVE
STA
BLE
A
SSET
S
$3MM - $50MM $50MM Plus To $250MM $250MM Plus
Premier Banking & Investments
The Private Bank Family Wealth Advisors
Philanthropic Management
Retirement Solutions
Columbia Management
Consumer Banking
CH
AN
NEL
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Growth Opportunities
• Affluent households own 77% of personal investable assets in U.S., growing 26% (or 4x rate of U.S. population) from 2006-2010
– We are growing Premier Banking & Investments into the leading franchise in the underserved mass affluent market.
• Wealthy households own 15% of personal investable assets in U.S., growing 36% (or 6x rate of U.S. population) from 2006-2010
– With current capabilities and addition of U.S. Trust, we create the largest private banking franchise in this fragmented market.
• Columbia Management is well positioned on strong investment performance and strong retail/institutional distribution
– Columbia Management is focused on taking greater share.
12
Leveraging the Strength of our Franchise
• 8MM affluent customer relationships
• Nearly 300,000 wealthy customer relationships
• Relationships with 30,000 middle market institutions
• Relationships with 80% of companies with pension assets of $200MM
13
Partnerships for Growth: Converted Client ReferralsWhy:• Best way to solve our clients’ needs• Deepening relationships with existing
clients represents best opportunity for profitable growth
• Leverages strength of our franchise by generating referrals for all lines of business
What’s involved:• Goals and incentives in all lines of
business • 46 local markets with GWIM leader• Personal and institutional client teams
drive teamwork across lines of business in each market
• Integrated client management process
Converted Client Referrals
155,233
48%
104,879
2005 2006
14
Investing Aggressively in Growth
• People
• Training
• Technology
• Marketing
• U.S. Trust acquisition
Growth Opportunities in Premier Banking & InvestmentsPat PhillipsPresident, Premier Banking & Investments
15
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Premier Banking & Investments: Key Takeaways
• Bank of America has invested heavily in a scaled model that satisfies affluent clients’ banking & investing needs
• The business produces strong growth and profit, and deepens customer relationships
• We will grow through increased productivity, sales force expansion and by leveraging the strength of our franchise
17
Mass Affluent Segment
Who They Are What They WantShare of U.S. personal investable assets
Advice
MassAffluent
High NetWorth
Consumer
77%
9%
15% Convenience
Respect
Total personal investable assets : $17.5T
Source:: IXI Xillionaires 2004-2005
18
How we Serve our Affluent Clients in PB&I
Convenience• 5,800 stores, 17,000 ATMs• No. 1 Online Banking• Leading Online Brokerage
Dedicated Teams of Client Managers and Financial Advisors
• 4,400 professionals based in local markets nationwide
Priority service• Premier Relationship Center• BAI Investment Centers• 1,200 professionals
Relationship and Targeted Pricing• Mortgages• CD Rates• Money Market• $0 Online Equity Trades
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Our Size, Scale and Market Position4Q06 client balances• Average deposits of $96.5B• Average loans of $32.1B• Total client brokerage assets of $187.7B • Fee based assets of $18.6B
Market position• Unique service model• No. 1 affluent deposit market share• Highly rated online brokerage platform• Integration with Consumer Banking
Relationships With Mass Affluent Households Product penetration
• 50% of Premier Banking & Investments customers obtain their first mortgage through Bank of America
• 74% of Premier Banking & Investments customers obtain their home equity line / loan through Bank of America
• Approximately 1/3 of Premier Banking clients have an account with Banc of America Investment Services, Inc.
Qualified Bank ofAmerica Customers
Premier Only orInvestments Only
Premier Banking &InvestmentsCombined
1.4MM
8MM
Premier
246K
Brokerage
20
Improvement Achieved After Client Migration to PB&I
159%
Better
Investment Growth
60%
Better
Credit Growth
22%
Better
Revenue Growth
8%
Better
Deposits
PB&I Test and Control Study of Premier Banking clients vs. similar Premier-eligible households that remain in Consumer Banking; results based on two year period from April 2004 to July 2006
21
Delivering Growth Through Deeper Relationships…PB&I Client Balances1 ($B) PB&I Client Average Loan Balances1 ($B)
4Q04 4Q05 4Q06
DepositsMM MFOther Brokerage
244
285
131
94
159
29
97
4Q05 4Q06
32.126.6
20%
20
75
12/31/05 12/31/06
Premier Households with Brokerage Relationship10%
246K223K
15
124
214
CAGR 15%
1Includes impact from Consumer migration
22
…and Increased Financial Advisor Productivity
8.7
18.6
13.7
2004 2005 2006
27%
40%49%
2004 2005 2006
$3.1 B $4.2 B
$7.1 B
2004 2005 2006
Recurring Revenue as a Percentage of Investments Revenue
Loans & Deposits Referred to Bankers by Financial Advisors
Premier Banking & InvestmentsInvestments Revenue
12% CAGR 51%
CAGR 46%
Fee Based Assets Under Management ($B)
$805 MM
$720 MM
2005 2006
23
Growth Initiatives
• Increased client contact leads to greater client delight
• Improved productivity
– Better use of technology
– Improved client selection
– Continued focus on partnerships
• Expanded sales force
24
Percent of PB&I markets with organic deposit growth
Two-Month Moving Average During 2006
10%
20%
30%
40%
50%
60%
70%
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
25
Growth Initiatives: Expand the Sales Force
5,0875,581
4,7214,048
5,940
1,812 2,126 2,345 2,624
75221
2,0482,134 1,890
1,9541,946
425311 315
409379798770
756
Premier RelationshipCenterInvestment Center
400
1,175
464
Financial Advisors
CRC Client Managers
Premier ClientManagers
2003 2004 2005 2006 2007
26
Premier Banking & Investments: Key Takeaways
• Bank of America has invested heavily in a scaled model that satisfies affluent clients’ banking & investing needs
• The business produces strong growth and profit, and deepens customer relationships
• We will grow through increased productivity, sales force expansion and by leveraging the strength of our franchise
Growth Opportunities in Private Wealth ManagementBrian MoynihanPresidentGlobal Wealth & Investment Management
27
28
Private Wealth Management: Key Takeaways
• The Private Bank of Bank of America is positioned for stronger growth
• The business becomes an even more powerful competitor combined with U.S. Trust
• We will grow the business by leveraging the franchise and through more disciplined relationship management
29
Wealthy Segment
Unique needs:• Wealthy clients want access to
more specialized and customized solutions
• 60% have relationships with at least five providers… but all want a primary advisor
• Business owners have accumulated wealth faster than industry has adapted to serving them
Share of U.S. Personal Investable Assets
1 Source: IXI Xillionaires 2004-2005
MassAffluent
High NetWorth
Consumer
77%
9%
15%
Total personal investable assets: $17.5Trillion1
30
Combining Strengths to Form Leading Wealth Manager
The New Private Wealth Management at Bank of America
118,000 client relationships
2,500 ultra wealthy client relationships
$270 billion in assets under management
$6B in alternative investments
$16B in specialty asset management
No. 1 private bank and No. 5 wealth manager*
leadership across products, services
offices in 32 states, including CA, CT, MA, NY
strong brand awareness
enormous growth potential
Pending legal closing. The proposed acquisition is subject to regulatory approval and, until such acquisition is consummated, U.S. Trust Corporation and Bank of America Corporation will remain separate and competing parties.
*Private Bank ranking reflects SEC Filings, Company 10Qs. Wealth Managers ranked by assets, based on individual clients with accounts of $1MM or more, in Barron’s June 30, 2006.
31
Our Size, Scale and Market PenetrationProducts and services• Trust and wealth transfer services• Liquidity management• Comprehensive investments• Credit expertise• Specialty asset management• Philanthropic services• Family Wealth Advisors Facets of Life analysis
Market position• Largest private banking footprint in the U.S.
with more than 150 locations• Leading private bank lender• Leading manager of oil and gas properties • No. 1 trust provider in the U.S.• No. 1 in foundation assets among U.S. banks• No. 1 manager of farm and ranch acreage
Client balances (2006)• Average deposits of $18.9B• Average loans of $31.2B• Assets under management of $171.8B• Brokerage assets of $28.3B
105,000
295,227
669,807
TotalHNW in
BACFootprint
PB Relationships
BAC
ClientsHNW
BAC Relationships With Wealthy Households
32
Improving Performance Before the Merger
(1.6)
(3.2)
(4.9)
2004 2005 2006
32.331.4
30.730.530.429.629.6
30.1
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
Loans ($B)CAGR 5%
Deposits ($B)
26.9 25.7
20.818.6 18.6 18.6 18.6
20.0
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
AUM Net Flows ($B)Assets Under Management ($B)
CAGR 3%
164.6
162.9
165.1164.0
166.0
163.7
166.6
171.9
1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06
33
Growth Initiatives
2,0772,051
1,934
2005 2006 2007
Sales People• Increase sales capacity
• Enhance client experience and improve productivity
– Client Management Process
– Integrated desktop tool
– Private Bank Relationship Center
• Deposits and liquidity
• Alternative investments
• Wealth transfer / business owners
• Focused markets (exit International)
Client Delight (Top 2 Box Delight)
40%50%
2005 2006
34
Private Wealth Management: Key Takeaways
• The Private Bank of Bank of America is positioned for stronger growth
• The business becomes an even more powerful competitor combined with U.S. Trust
• We will grow the business by leveraging the franchise and through more disciplined relationship management
Growth Opportunities in Asset ManagementKeith BanksPresident, Columbia Management
35
36
Asset Management: Key Takeaways
• Columbia Management is well positioned given its scale, breadth of products and strong investment performance
• We will take share across asset classes by capitalizing on strong performance and more intensive distribution efforts
• We will compete to win a greater share from Bank of America’s institutional clients
• Our strategic focus is on alternatives, international and retirement solutions to drive longer term growth
37
Columbia Management
AUM By Client Segment (As of 12/31/06)
Retail
Institutional
27%
45%
28%
High NetWorth
Assets under management: $543B (as of 12/31/06)1
26th largest asset manager globally2
15th largest U.S. based asset manager2
8th largest U.S. mutual fund family3
6th largest global money fund manager4
$543
Columbia Management and its affiliates ("Columbia Management") :Columbia Management and its affiliates comprise the wealth and investment management division of Bank of America Corporation. As of September 30, 2006, Columbia Management and its affiliates managed assets of $517 billion. Columbia Management and its affiliates managed assets consists of assets under the discretionary management of the three registered investment advisors, Columbia Management Advisors, LLC ($331.4 billion), Columbia Wanger Asset Management, L.P. ($30.3 billion) and Marsico Capital Management, LLC ($76.3 billion); the Bank of America Private Bank; Banc of America Investment Services, Inc.; Banc of America Investment Advisors, Inc.; Bank of America Capital Advisors, LLC, and Premier Banking & Investments. 2Ranked by worldwide AUM as of 12/31/05, according to Pension & Investments, 5/29/06 3Source: Strategic Insight, 12/31/06; 4) Source: iMoneyNet,12/31/06
Total Assets Under Management ($B)Columbia Management and Affiliates
CAGR 10%
$482$451
201 215 248
96 83 87
154184
208
0
100
200
300
400
500
600
2004 2005 2006
Equity Fixed Income Money Mkt/ Other
38
Integration Highlights
• Reduced number of retail mutual funds by more than 30%
• Consolidated 6 fixed-income product centers into 2
• Consolidated core vendors providing services
• Returned more than $200 million in savings to mutual fund shareholders through reduced expense ratios, since 2005
39
Investment Performance in Fixed-Income and Money Market
Percentile Rankings for Taxable Fixed-Income & Money Market Funds based on 3-Year Performance
Money Market FundsTaxable Fixed-Income Funds
38th
percentile
16th
percentile
Columbia Taxable Fixed-Income Funds combined average ranking: 38.5th percentile when compared to industry competitors. Source: Columbia Management based on Morningstar data. Mutual Fund complexes with at least $3 B in assets and 5 taxable fixed income funds. Rankings include taxable fixed income funds thru 12/31/06
Columbia Money Market Funds combined average ranking: 16th percentile when compared to industry competitors. Source: iMoneyNet; Money Fund Complexes with at least $10 B in assets and 7 money market funds with similar investment categories as Columbia Management (account performance is simple weighted) thru 11/30/06
40
2004 2005 2006
Stronger Performance, Stronger Sales
Intermediary Net Sales ($B)
$1.6
$10.3
$13.83-year CAGR 194%
Intermediary sales rank of 173 wholesale complexes1
1. American Funds2. Franklin Templeton Investments3. Oppenheimer Funds, Inc.4. State Street Global Advisors5. Columbia Management
2005 2006
Institutional Short Term Net Sales ($B)
$10.2
$1.4
Institutional Long Term Net Sales ($B)
($8.6) ($0.6)
2005 2006
1Ranked by 2006 LT and ETF AUM, source: FRC
41
How we Realize Additional Growth
Equityget our fair share across breadth of product portfolio
Fixed Incometake it to a higher level and grow assets
Cashbuild upon our considerable strength
Plus,greater penetration of Bank of America institutional franchise
42
Increase Share With Existing Bank of America Clients
U.S. corporations with pension assets of $200MM or more hold $2.9T in assets
80% are Bank of Americaclients
Columbia Management share is < 3%
43
How We Realize the Opportunity
• Hired new head of distribution
• Rebuilding the sales team
• Broadening consultant advisory team
• Aligning ourselves with Client Management Process in GCIB
44
Columbia Management Long Term Strategic Initiatives
Alternatives
International
Retirement
45
Asset Management: Key Takeaways
• Columbia Management is well positioned given its scale, breadth of products and strong investment performance
• We will take share across asset classes by capitalizing on strong performance and more intensive distribution efforts
• We will compete to win a greater share from Bank of America’s institutional clients
• Our strategic focus is on alternatives, international and retirement solutions to drive longer term growth
46
Global Wealth & Investment Management: Summary
• We are a large and profitable competitor in attractive businesses and markets
• Our competitive position and integrated model provides strong growth opportunities
• Our best and most efficient way to grow is to leverage the strength of our franchise
• We are capturing those growth opportunities, but there is much more ahead of us, and we are continuing to invest aggressively to capture it
