Enterprise Risk ManagementAmy BrinkleyChief Risk Officer

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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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Our Core Capability is Managing Risk to Enable Growth

• Begins with a culture of performance management andaccountability

• Comprehensive & dynamic: Credit, Market, Operational and Strategic

• Forward-looking: Insight and information to define risk appetite and to grow

Sustainable growth

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Protecting and Growing Shareholder Value

Competitive Advantages:

• Unique insight

• Broad capabilities to take and manage risk intentionally

• Comprehensive and integrated management of risk and reward

Changing Environment:

• Evolving customer needs

• Unprecedented liquidity

• New global realities

Our processes identify opportunities and risks that drive changes to our business models.

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15%8% 9%

8% 8%11%

50%

36% 33% 32%

29%

48% 50% 53%

4%

6%

Positioning our Economic Capital for Growth

• Capital well aligned to earnings and clients

• Supports consumer growth initiatives

• Focused reduction in GCIB credit capital

• Created more capital velocity in GCIB

Capital Net Income100% 100%

2000Capital Net Income

100% 100%

2006

Other

GWIM

GCIB

GCSBB

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Consumer Health

• Despite consumers’ increasing levels of financial obligations relative to income, consumer aggregate net worth is at its highest levels and growing at a healthy pace

• However, stress within the sub prime market may have an adverse impact on some local markets and specific communities

(20,000)

0

20,000

40,000

60,000

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

$B

Real Estate Assets Financial Assets Liabilities Net Worth

Source: Federal Reserve, Flow of Funds

Household Balance Sheet(as of September)

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Our Managed Consumer Portfolio is a Balanced Mix of Traditional Products

• 8% YOY Growth• 57% Consumer Real Estate• 30% Consumer Card

Total Consumer Average Balances$553.6B

Home Equity15%

US Consumer Card25%

Consumer Finance4%

DFS 6%

Other Consumer3%

Residential Mortgage42%

Foreign ConsumerCard 5%

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Consumer Real Estate Asset Quality

Home Equity

Avg. FICO 724

Avg. LTV 63%

1st Mortgage- Originated and Serviced

Avg. FICO 729

Avg. LTV 57%

1st Mortgage- Serviced By Others

Avg. FICO 750

Avg. LTV 56%

Asset Quality of the Consumer Real Estate portfolio is strong.

31%

42%

27%

Note: All FICOs and LTVs current or refreshed

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Proprietary Insight as a Competitive Advantage Relationship Results in Improved Credit Performance

• We have been increasing our use of analytics to understand customer behavior

• This knowledge allows us to optimize our business model for the customer segments that we target

Credit Quality

Del

inqu

ency

Rat

e

High Credit ScoreLow Credit Score

Credit Performance of Total Market

Credit Performance, both “On-Us” & “Off-Us”, of a BAC Customer with a Large Deposit Balance

Credit Performance, “On-Us” only, of a BAC customer with a Large Deposit Balance

At the same credit score, relationship customersoutperform the market

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Commercial Health• Corporate profits continue to grow

• Credit statistic trends remain favorable

• Market liquidity is strong

Current vs. Projected S&P Earnings Growth

Source: Thompson Financial

5%

10%

15%

20%

25%

30%

2Q 03

4Q 03

2Q 04

4Q 04

2Q 05

4Q 05

2Q 06

4Q 06

E

2Q 07

E

Qua

rter

ly S

&P

500

Earn

ings

Gro

wth

Projected Growth Start of Quarter Actual (blended) GrowthFirst Call AnalystEstimates

High Grade Leverage and Coverage

Source: Banc of America Securities, LLC and Factset.

Med

ian

Rat

io o

f Net

Deb

t to

LTM

EB

ITD

A

Med

ian

Rat

io L

TM E

BIT

DA

to L

TM In

tere

st E

xpen

se

1.5

1.7

1.9

2.1

2.3

2.5

2.7

Mar-90

Mar-92

Mar-94

Mar-96

Mar-98

Mar-00

Mar-02

Mar-04

Mar-06

4.5

5.0

5.5

6.0

6.5

7.0

7.5

8.0

Median Net Leverage Median Coverage

High Yield Leverage and Coverage

Source: Banc of America Securities, LLC and Factset.

Med

ian

Rat

io o

f Net

Deb

t to

LTM

EB

ITD

A

Med

ian

Rat

io L

TM E

BIT

DA

to L

TM In

tere

st E

xpen

se

2.5

2.72.9

3.1

3.33.5

3.7

3.94.1

4.3

1Q95

1Q96

1Q97

1Q98

1Q99

1Q00

1Q01

1Q02

1Q03

1Q04

1Q05

1Q06

2.5

2.7

2.9

3.1

3.3

3.5

3.7

3.9

4.1

Med Net Debt Leverage Med Coverage

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Managing Commercial Credit Risk

Advantages in Managing Risk

• Industry insights and focus

• Market knowledge enabling an originate to distribute strategy

• Managing risk globally across products and client segments

Our Strengths

• Breadth of client access

• Capital markets and distribution

• Integrated risk structure

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Commercial Credit Risk Profile

• Rebalanced the portfolio• Improved risk evaluation and monitoring tools

GIB33%

GMG11%

Aviation0%

Leasing5%

Business Banking4%

Business Capital2% DFS

2%

CREB11%

CB Regions22%

Other10%

Other17%

CB Regions22%

CREB14%

DFS3%

Business Capital4%

Business Banking7%

Leasing9%

Aviation1%

GMG5%

GIB18%

Commercial Banking46%

Corporate Banking44%

Other10%

Corporate Banking23%

Other17%

Commercial Banking60%

Average Funded Commitments 4Q06

$238.5B

Commitments as of 12/31/06

$618.0B

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Commercial Credit Industry Profile

• Effective management of industry and single name concentrations• Increased distribution risk in high-return leveraged finance activities• Improved revenue mix and more efficient use of capital

Commitments by Industry12/31/06

Real Estate12%

Diversified financials11%

Retailing & Consumer Products*

9%

Government & public education

6%

Capital Goods6%

Banks & insurance*8%

Individuals and trusts5%

Materials5%

Commercial services and supplies

4%

Food Products*4%

Media & Telecom*4%

Energy*6%

Technology* 3% Other*

7%

Healthcare equipment and

services5%

Consumer services5%

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Credit Comments

0.72%0.72%43,900Other Commercial

$238,454Total Commercial

553,573Total Consumer

*Average Annual RAM: 7.5 - 8.5%

Expected AverageActual LossesAverage

Balances($MM)

30-60 bps0.04%0.20%143,293Commercial Banking

30-60 bps(0.14%)(0.27%)51,261Corporate Banking

COMMERCIAL (Held)

1.45%2.30%71,524Other Consumer

500-550 bps3.90%5.54%165,991Consumer Credit Card*

<10 bps0.03%0.03%$316,058Consumer Real Estate

Over a cycle200620054Q06CONSUMER (Managed)

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Managing Market Risk

MarketRisk

New Products• Risk forums• New Products

Committee

Counter Party Risk• Ongoing due diligence• Market focused • Collateral requirements

Proactive Risk Mitigation• Market focused• Structuring risk• Hedging

Stress Analysis• Historical simulation• Event specific scenarios• Hypothetical scenario• Business specific

stress

VaR• Directionality• Volatility• Correlation• Concentration

• Integrated Risk Management (Market, Credit, Structuring) aligned with each business line

• Risk limits set to encourage velocity and distribution

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Improved Revenue Generation From Market Based Activities

• 96% of days with positive revenue in 2006 vs. 86% in 2005• No trading days in 2006 with losses greater than $10mm• VaR maintained at ~$41mm

Histogram of Daily Market Related Trading Revenue

0

10

20

30

40

50

60

70

80

90

less than-20

-20 to -10

-10 to 0 0 to 10 10 to 20 20 to 30 30 to 40 40 to 50 greaterthan 50Revenue ($MM)

Num

ber o

f Day

s2005 2006

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Managing Operational Risk

• Information security

• Business continuity

• Vendor management

• Talent

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Protecting and Growing Shareholder Equity

Changing Environment:

• Evolving customer needs, intense competition

• Unprecedented liquidity, convergence of risks

• New global realities

Competitive Advantages:

• Unique insight

• Broader capabilities, more choices to take and manage risk more strategically

• Manage all risks that impact our business