Document

Global Consumer &Small Business BankingLiam McGeePresidentGlobal Consumer & Small Business Banking

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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.

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Competitive Differentiators

• Our size & scale matter

• We have a proven track record of growth

• We will continue to grow

Our Size & Scale Matter

We are Where Customers are


In our footprint…• 76% of U.S. population• 75% of small businesses• 93% of Hispanic households• 86% of Asians• 77% of African-Americans



Through…• 5,700+ banking centers• 17,000+ ATMs• No. 1 online bank• 5,000+ affinity relationships


We Are Where Customers Are

Through…• 5,700+ banking centers• 17,000+ ATMs• No. 1 online bank• 5,000+ affinity relationships



8

Ease of Doing Business – Customers Choose

3,275Customer

Touches per Second

BankingCenters

Phone

ATM

e-Commerce

AffinityGroups

Merchant SalesForce

2 billion onlinesessions

2.6 billioncall centercontacts

1 billion transactions

1.1 billion teller transactions

1.3 billion transactions

8.1 billion merchant

transactions


9

Customer Delight


2001 2005 2006

17% improvement

42.5%

49.6%50.3%

10

Integrated Operating Model

Product Distribution

• Banking centers• e-Commerce• Mortgage sales

force

• Affinity groups• ATM channel• Phone channel• Mobile access

• Card• Deposits• Mortgage, HELOC,

consumer loans

• Insurance• Investments• Small Business

products


11

Innovation


12

National Franchise – Earnings Across our Markets

Seattle 1.5%

San Francisco 4.5%

Los Angeles 8.5%

San Diego 1.7%

Phoenix 2.6%Dallas/

Ft. Worth 2.9%

Houston 2.1%Miami/

Ft. Lauderdale 5.4%

Atlanta 3.6%

Washington, D.C. 3.4%

Philadelphia 1.3%New York 5.4%

Boston 3.5%

Chicago 1.3%

Baltimore 2.1%

50% of NIBT driven by 15 large metro markets


13

Efficiency – Improving Efficiency While Growing

51%

49%

45%

2004 2005 2006

Pro forma with Fleet and MBNA


14

2005 2006 2007 Target

Efficiency – Lowering Origination Costs

Note: Home Equity cost represents end to end origination and fulfillment.

Credit Card – Cost to Acquire

2005 2006 2007 Target

$717

$484$421

Home Equity – Cost to Originate

$100

$84

$70


15

Brand – Critical to Growing a Retail Business

Source: Brand Research & Analytics, Fortune, FT

Unaided Brand Awareness

23%

43%

• Wells Fargo – 19%• Citibank – 19%• Wachovia – 16%• Chase – 20%

2006 Competitor Data

2000 2006


We Have a Proven Track Record of Growth

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Top Line and Revenue Mix Growth

$41.7

$38.8$37.0

2004 2005 2006

Pro forma with Fleet and MBNA ($B)

6% CAGR

Revenue


8% Noninterest income CAGR

Revenue Mix

$37.0 $38.8$41.7

4% Net interest income CAGR

$17.5 $18.7 $20.6

2004 2005 2006

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Bottom Line Growth

Pro forma with Fleet and MBNA

14.9%15.8%

17.7%

2004 2005 2006

Return on Equity

$8.7$9.4

$11.2

2004 2005 2006

13% CAGR

Net Income ($B)


19

Growing Customer Relationships

2002 2003 2004 2005 2006

Net New Checking Accounts (MMs)

0.4

1.2

2.02.3 2.4

2002 2003 2004 2005 2006

New Debit Cards (MMs)

2.53.2

4.14.8

5.3

2002 2003 2004 2005 2006 2002 2003 2004 2005 2006

Home Equity Production ($B) New FranchiseConsumer Credit Cards* (MMs)

30.038.0

61.072.0

80.8

1.21.6

1.82.2

3.1

*MBNA is not included 2002-2004


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Deposits – Success at Balancing Profitability and Growth

0%

6%

12%

3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q060%

40%

80%

Cumulative % of FedFunds Increase Passed on to Customers

Growing Deposits While Lagging Rates Paid

CumulativeConsumer

DepositGrowth

Cumulative Consumer Deposit Growth (ex MBNA)


Cumulative Pass Through % of Fed Funds Increase (since Q204)

21

Proven Execution – Sales Growth

2004 2005 2006

CAGR = 13.8%

34.3

41.544.4

2001 2002 2003 2004 2005 2006

Net New Checking Accounts (MM)

0.4

1.2

2.12.3

2.4

0.2

Total Sales Units (MM)*


*Pro forma with Fleet and MBNA

We Will Continue to Grow

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Legacy BAC Legacy BAC and Fleet Legacy BAC, Fleet and MBNA

Household Growth

17.8

Multi-Product Households

Single-Product Households

Hou

seho

lds

(MM

s)

19.7

14.0

27.6

39.4

55.7


41% Multi-Product Household Growth

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Franchise Opportunities

All Information as of 3Q06 – Includes MBNA Customers


And yet…

12.5 million Deposit HHs with a deposit product only

2 million Small Business HHs with one product only

Card customers have $250B of balances with competitors

77% of BAC HHs get their HELOC elsewhere

94% of BAC HHs get their Mortgage with others

#61st Mortgage Originations

#1HELOC Originations

#1Credit Card Balances

#1

#1

Deposit Balances

Small Business Deposits

Market Share

25

Innovation and Integration – Driving Execution

• Saying “yes” more to our customers Consumer Lending


26

0%

17%

38%

Apr 06 Dec 06 Dec 07

% of Loans* Ready to Close in 1 Hour

*Of apps <$250k, not in SC/TX, not multi-family, in a trust or a flood zone (81% of apps)

Innovation – “Cup of Coffee” Home Equity

43%

64%75%

Apr 06 Dec 06 Dec 07

% of Applications With Instant Decision


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First Mortgage


First Mortgage Market

3.3%2.9%

3.4%3.0%

4.1%

$250

$350

$450

$550

$650

$750

4Q05 1Q06 2Q06 3Q06 4Q06

Mar

ket S

ize

Bill

ions

Market Size $BMarket Share %

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• Growing through combined capabilities Card / Affinity


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Card/Affinity Banking

2005 2006

2.8

4.1

U.S. Franchise Card Sales – (MM)(Banking Center and e-Commerce)

46% increase


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• Increasing revenue as a full-service providerSmall Business


31

Small Business Banking Growth Opportunity

Small Business Customer Penetration

18.2%

20.8%

22.4%

2003 2004 2005


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• Attacking market-specific opportunitiesMarket Optimization


33

Optimizing Market Opportunities

1 Source: June 2006 FDIC /(MSA defined geographies)

Retail Deposit Balance Share1

Ret

ail B

alan

ce S

hare

27%25%

24% 24% 23% 23% 23% 22%

17% 17% 16%14%

9%

4%

1%

Seattle

San Fran

Baltim

ore

Boston

Phoenix LA

Miami

Dallas DC

San D

iego

Atlanta

Houston

New York

Philly

Chicago


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Los Angeles and Washington, D.C.

42%62%BAC Deposit HH Penetration

WachoviaSunTrust

BB&T

Wells FargoWashington Mutual

Citigroup

Top 3 Competitors

43%64%Ethnic Diversity

1.8MM4.2MMTotal Market Households

Washington, D.C.Los Angeles


35

Outpacing the Market

Deposit Household Growth

HELOC Origination Growth

4%

1%

26%

-9%

Deposit Household Growth

HELOC Origination Growth

9%

-24%

8%

2%

Los Angeles Washington, D.C.

All Information as of 3Q06

BAC Total Market

BAC Total MarketBAC Total Market

BAC Total Market


4%

1%

26%

-9%

9%

-24%

8%

2%

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Los Angeles Opportunity – Deepen Relationships


Card customers carry $13B of balanceswith competitors


73% of BAC HHs get their HELOC elsewhere ($17B)


96% of BAC HHs get their Mortgage with others ($102B)

#81st Mortgage Originations

And yet…Market Share


37

Washington, D.C. Opportunity – Acquire and Deepen

1 million households do not have a deposit relationship with us

#1Deposit Balances

Card customers carry $5.5B in balanceswith competitors


75% of BAC HHs get their HELOC elsewhere ($5.4B)


And yet…Market Share



38

Optimizing Market Opportunities – Community Division


39

Total Sales Growth in the Community Division

2005 2006

3.4MM

4.0MM18% Growth






• Attacking market-specific opportunitiesMarket Optimization


• Diversity, population shifts, technologyMegatrends

41

Megatrends

• Customers are taking controlTechnology

• Education and healthcare emerge as growth sectorsPopulation Shifts

• Demographic changes create opportunity Diversity


42

Hispanic Segment – GCSBB Results and Opportunity


43

Megatrends





44

Aging Population

2005 2014

68MM

55+ Population Growth

2005 2014

Average Out-of-pocket Health Care Expenses for Seniors

$1,658

$3,588

86MM

26% increase

115% increase

Source: US Census, US Department of Health and Human Services, McKinsey & Company


45

Healthcare Solutions

Providers(e.g. clinic, Drs,

hospitals)

Payors(e.g. Insurers)

Employers

• Health Savings Accounts

• Health-themed affinity credit card

• Health Insurance

• Long-term care insurance

• On Line Health Insurance Solutions (eHealth)

• Discounted Pharmacy Benefit Program

• Receivables Management

• Electronic Eligibility Verification

• Imaging

• Cash flow management

• Investment banking services for healthcare industry

Mass Customers/ Affluent

Employers Providerse.g. clinic, doctors,

hospitals

Payorse.g. Insurers

Total Industry Profit

Opportunity $10B+ Annually

GCSBB, GWIM and GCIBGCSBB and GWIM


Source: BAC Analysis, McKinsey & Company; note – industry opportunity represents annual pre-tax operating profit

46

College Enrollment & Cost Projections

Current + 10 Years

$70K

$120K28% of HH

Income

43% of HH Income

Current +10 Years

17.4MM

19.5MM12% Increase

Source: National Center for Education Statistics; The College BoardAverage annual cost of a public 4 year institutionAverage time to complete a bachelor’s degree: 5.5 years

Cost to Earn a DegreeCollege Enrollment


47

Education Opportunity

Vision: Become the “Provider of Choice” for Education Financial Solutions

• 529 College Savings Plans

• Government & Private Student Loans

• Alumni Cards (Collegiate Affinities)

• Financing and Cash ManagementSolutions

• Financing and Cash Management Solutions

• Checking With Online Account Transfers & “Keep The Change” for maximizing college savings

• Student Checking, Savings and Card Solutions

• Endowment Management

• Asset Securitization

• Consolidation of Student Loan Debt

Parents Students Alumni EducationInstitutions

SpecialtyFinance

Companies

GCSBB, GWIM and GCIBGCSBB and GWIM


48

Megatrends





49

Online Banking Growth

2003 2004 2005 2006

CAGR = 42.9%

7.2

21.2

Bill Pay users

LoanDepositBalances Balances

Profitability

15%

28% 27%

Incremental Online Customer Relationship Value*

*Three years after going online, combined access-onlyand bill pay customers

Online Banking Active Users

12.414.7


Access Only

50

Mobile Banking

• 215MM handsets across the U.S.• More than 85% of mobile phone subscribers have access to

mobile Internet


51

Customers Take Control


Customer

52

Competitive Differentiators

• Our size & scale matter

• We have a proven track record of growth

• We will continue to grow

53

In Summary

Our size and scale matter

• Unmatched national franchise

• Integrated operating model

• Customer information enables continuous innovation

We have a proven track record of growth

We will continue to grow

• 6-9% earnings growth

• Unlimited opportunity in our markets

• Consumer Credit and Small Business

• Marketplace megatrends

Consumer CreditBruce HammondsGlobal Consumer & Small Business BankingPresident Card Services

55

Consumer Credit: Why we are Positioned to Grow

• Strong customer base

• World class products and services

• Broader distribution

• Industry leading risk adjusted margins

56

Consumer Credit: Strength With Room to Grow

30%15% 7% 16% 10%

70%85% 93% 84% 90%

Credit Card Home Equity Mortgage Unsecured Total Credit

On Us Off Us

Total Credit of BAC Customers

$4.5 trillion opportunity

within existing customer base

$455B $518B $4,050B $80B $5,100B

57

Credit Solutions Continuum

Customer credit needs

Relationship-based Common Decision Engine

Home Equity

StudentLending

Unsecured Credit Card

UnsecuredLines

FirstMortgage

SecuredCredit Card

Delivery channels

Banking Centers

Client ManagedE-Commerce Call

Centers ATM Mobile Banking

58

$60

$70

$80

$90

3Q05 4Q05 1Q06 2Q06 3Q06 4Q068.0%

8.5%

9.0%

9.5%

10.0%

Ending Balance Market Share

Home Equity Leader With Room to Grow

• Net credit losses are expected to range between 10 and 25 bps

• Average refreshed FICO score of 724

• Current cumulative LTV of 63% for overall portfolio

BA

C B

alan

ces

($B

)

BA

C M

arke

t Sha

re

Footnote: 4Q06 Market Share is estimated

59

First Mortgage

• Net Credit Losses are expected to range between 5 and 9 bps

• Average refreshed FICO score of 729

• Current LTV of 57% for overall portfolio

First Mortgage Market

3.32.9

3.43.0

4.1

$250

$350

$450

$550

$650

$750

4Q05 1Q06 2Q06 3Q06 4Q06

Mar

ket S

hare

%

Mar

ket S

ize

($B

)

Market Size $B Market Share %

60

Top U.S. Credit Card Issuers 2006

Source: Ending loans based on company reports (excludes international and private label)

Bank of America is the leading credit card issuer in the U.S. with $152 billion in managed loans.

$34

$152$147

$108

$54 $54$46

$17

BAC CardServices

JP MorganChase

Citi AmericanExpress

Capital One Discover

$ in

Bill

ions

$203

International

Consumer Finance

Total Card Services

61

Sales & Service Delivery Channels – U.S. Card• Leveraging banking center and Internet channels• Greater convenience, lower cost, higher return

CTA* $109 $100 $84 $70

* Actual 2006 CTA by channel was utilized to calculated 2004-2005 estimates shown and are not actual historical values . The value will therefore reflect change in mix only.

16% 12% 11% 10%

5% 8% 12% 11%

21% 19% 13% 13%

41%37%

27%23%

17%24%

37% 44%

2004 2005 2006 2007 Plan

FranchiseDirect MailOtherInternetMedia Marketing

62

Asset Quality

• Industry losses ranged between 5% and 6% from 2000 through 2005

2005 data is pro forma and includes combined BAC and MBNA managed consumer credit card charge-offs

$1,950

$2,881

$1,246

$1,748$1,906

$1,994

$1,474

$1,907

4.79%3.67%

4.23% 4.56%

3.12%

7.07%5.08% 5.20%

$3,500

1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06-2.00%

0.00%

2.00%

4.00%

6.00%

8.00%

10.00%

Managed Consumer Credit Card Charge-offs ($MM)

Managed Consumer Credit Card Charge-off Ratio

63

Channel Diversity Leverages Value of Relationships

Yr 2 Avg Bal $1,140 $2,133 $2,902 $1,965

7.6%

4.9%3.7%

8.9%

13.9%

11.4%

9.1%8.9%

2%4%6%8%

10%12%14%16%

Stores/Online Customer DM Affinity/Cobrand Non-Customer

$100

$200

Yr2 NCL 5 Yr Avg RAM CTA (Pre-Tax)

64

Emerging Markets - HispanicMarketing to our Customers

• Hispanic Family Dream Campaign

• Offer unsecured, partially secured and fully secured cards

• In-Culture marketing and product development

• Thin / no file credit modeling– Alternative credit scores combined

with relationship scores

– Unsecured card offers to the right existing relationship customers

• End-to-end in-language service & fulfillment

65

New Products

Keep the ChangeTM &Credit Bundle

Ownership Rewards

Caremark

In Market 1Q07

Bank of America American Express

MLB Extra Bases

GWIM Amex VIP

66

Affinity Marketing

“Success is gettingthe right customers…and keeping them”

• Affinity marketing – selling to people with a strong common interest…

• Who have a strong propensity to accept other endorsed products

67

Have a propensity to accept multiple endorsed products.Have a propensity to accept multiple endorsed products.

Example:

National Education Association

• More than one-third of teachers nationwide carry Bank of America cards

• 3.1 million members

• $2.5 billion in credit card loans

• $925 million in other consumer loans

• $4.4 billion in deposit balances

Affinity Marketing Customers

68

International

• $34 billion in loans

• 12% growth in 2006 (excludes impact from FX)

• No. 1 Market Share in the U.K.

• 1,500 endorsements

• Exploring other international opportunities

Spain

United Kingdom Ireland

Canada

69

Our Unique Model

• More customers

• More data

• Broader distribution

• Leading risk-adjusted margins

• Industry leading profitability

• Unmatched growth opportunities

Mass Market Small BusinessMark HoganGlobal Consumer & Small Business BankingSmall Business Banking President

71

• Why focus on Small Business?

• Why is Bank of America unique in the Small Business market?

• How are we executing to deliver growth?

Mass Market Small Business

72

Small Business Customers

* 2003 Census & IRS sole prop data & market research (Market Share Monitor)

• Revenue under $2.5MM

• Owners wear many hats

• Credit exposure under $250K

• Non-client managed customers

• Integrated personal and business finances

• Frequent banking centers

Small BusinessLess than $2.5MM Sales

23 million in footprint

Business Banking

$2.5MM – $20MM Sales322,000 in footprint

Commercial$20MM – $2B

Sales

GCIB ClientManaged

Corporate> $2B Sales

73

Building MomentumDeposits ($B)

$53.4$50.5

2005 2006Avg. Balances

Loans ($B)

$24.3

$29.5

2005 2006Avg. O/S

Sales (units in millions)

2.4

1.9

2005 2006

Income Statement Trends

NIBT ($B) Revenue ($B)

$2.3$2.8

$4.5$5.3

2005 2006

6% Growth 21% Growth

27% Growth19% Growth

23% Growth

2005 2006

74

• Large revenue opportunity

• Total market revenue growth 5 – 8% each year

• Claiming natural Bank of America share

Small Business Revenue Opportunity

* 2003 Census & IRS sole prop data & marketresearch (Market Share Monitor)

75



$49 Billion Revenue Opportunity• Large revenue

opportunity



76



$49 Billion Revenue Opportunity

Current BAC Share

$5.3B




77



$49 Billion Revenue Opportunity

Natural BAC Share

$8B




78



• No one dominates Small Business market

• 30% in NY, FL, TX, CA –significant Bank of America retail presence

• 23MM Small Businesses in our geography

79

Growth Sectors of the Market

Source: Small Business Administration and Census Bureau firm data for 1998 to 2003

1.1%

3.4%

3.7%

4.5%

5.6%

7.8%

U.S. Household

Small Business

Women Owned

Asian Owned

Hispanic Owned

African-American Owned

Annual growth rates in the number of Small Businesses

80

Voice of the Small Business Customer

• More likely to aggregate personal and business wallet

• Don’t want to be bogged down by administrative tasks

• Want to grow his or her business

81

Consumer Model for Small Business

Integrated and Accountable

Small BusinessLeadership

Business Integration

DistributionChannelsProducts

Customers

82

How we will Grow

22%

50%

Smallbusiness

householdpenetration

Consumerhouseholdpenetration

Market research (Market Share Monitor)

Penetration Opportunity• Increasing penetration

83 Market research (Market Share Monitor)

16%

5% 6%

2005 creditshare

2006 creditshare

Benchmark(BAC

businessdepositshare)

Credit Share – Market Opportunity

How we will Grow

• Increasing penetration

• Deepening relationships through credit

84

How we will Grow



• Simplified products and processes

85

How we will Grow




• Innovative products and processes

86

How we will Grow



• Expanded sales and service capabilities



87

How we will Grow




• Enabling associates



88

• Expanded channel capabilities

2005 – 2006 Sales by Channel

Total Small Business

27%

Telephone*

70%

e-Commerce

324%

* Excluding debit

How we will Grow




• Enabling associates



89

• Well positioned to capture Small Business revenue opportunity

• Unique customer-centric structure enables integration, innovation and execution

• Using technology to offer simple package solutions and credit, expand capabilities

Capturing the Small Business Opportunity

Economy & Finance

Document