lehman brothers 4th annual conference

Bank of AmericaGrowth Opportunities in Consumerand Small Business Banking

Liam McGeePresidentGlobal Consumer & Small Business Banking

Lehman BrothersSeptember 13, 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 www.sec.gov.

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Global Consumer & Small Business Banking

1. Size and scale matter

2. Track record of growth

3. We will continue to grow

4

Geographic Diversity – Across U.S. Growth Markets

Size & Scale Matter

2Q06 YTD Earnings of $5.8 billion

West 17%

Southwest 13%

Community11%

East 22%

Northeast 15%

Out of Footprint 18%

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Earnings Diversity – Strong Foundation for Growth

Size & Scale Matter

Card Services51% Home

Equity4%

Mortgage2%

Deposits42%

Other1%

2Q06 YTD Earnings of $5.8 billion

6

Channel Diversity – Any Way Customers Choose

Size & Scale Matter

Customers& Clients

BankingCenters

Phone

ATM

e-Commerce

AffinityGroups

SalesForces

7

Pricing/Value – Ability to Price Below Average and Grow

Size & Scale Matter

Growing Deposits WhileLagging Rates Paid

0%

3%

6%

9%

12%

15%

Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q2060%

20%

40%

60%

80%

100%

Cumulative consumer deposit growth

% of Fed Funds hikes passed on – cumulative

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Efficiency – Economies of Scale Achieved While Growing

53%

50%

45%

40%

45%

50%

55%

YTD 2004 YTD 2005 YTD 2006

Pro forma Global Consumer & SmallBusiness Banking efficiency ratio

Size & Scale Matter

9

Resources – Capacity to Invest in People, Productivity

ATMCheck

Imaging Online BankingEnhancements

New andRefurbished

Stores

Size & Scale Matter

10

Information & Innovation – Anticipating Customer Needs

Size & Scale Matter

11

Brand – Critical to Growing a Retail Business

Bank of America Unaided Awareness

FortuneMost Admired (Megabanks)

• 2005 1st

• 2004 2nd

• 2003 3rd

• 2002 6th

Source: Enterprise Analytics, Fortune, FT

2000

23% 2005

41%

• Wells Fargo – 23%• Citibank – 18%• Wachovia – 16%• Chase – 11%

Size & Scale Matter

12

Payments – We Are Positioned to Lead

No. 1 Share in Fastest Growing Payment Types

Customers & Clients

No. 1Debit Card

15.7% Share

No. 1Credit Card

21.5% Share

No. 1Online Bill Pay

54.8% Share

• #1 Credit Card

• #1 Debit Card

• #1 Check Processor

• #1 Online Banking/Bill Pay

• #1 Cash Management

• #1 ACH Receiver

• #2 MerchantAcquiring

Size & Scale Matter

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Growing Customer Relationships

Track Record of Growth

2002 2003 2004 2005 2QYTD062002 2003 2004 2005 2QYTD06

Net New Checking Accounts New Debit Cards

443,000

1,192,000

2,063,0002,300,000

1,304,0002,500,000

3,200,000

4,100,0004,829,000

2,603,000

2002 2003 2004 2005 2QYTD06 2002 2003 2004 2005 2QYTD06

Home Equity Production (in $ billions) New Franchise Consumer Credit Cards

30.038.0

61.072.0

39.7 1,250,0001,565,000

1,784,000

2,196,000

1,554,000

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Top Line and Bottom Line GrowthPro forma with Fleet and MBNA ($ in billions)

18.0 18.920.7

$10

$15

$20

$25

1st Half 2004 1st Half 2005 1st Half 2006

14.2%15.8%

18.1%

0%

5%

10%

15%

20%


$4.2$4.6

$5.8

$3

$4

$5

$6


7% CAGR

17% CAGR

Revenue Return on Equity

Net Income

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Growth Opportunities

• Market optimization

• Mass market small business

• Consumer credit continuum

• Credit card

• Affinity banking

• Online banking / channel diversification

We Will Continue to Grow

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Optimizing Market Opportunities

‘1 HH penetration equal to HHs with BAC deposit acct. divided by number of HHs in market

61

55 53 53

4642 41 40 40

32

23

LA Seattle Miami San Fran Boston Phoenix Dallas Atlanta DC Houston NY

% Household Penetration Share 1

17‘1 Checking HH penetration equal to HHs with BAC checking acct. divided by number of HHs in market

‘2 Defined as BAC HELOC production divided by Total HELOC Market

Optimizing Market Opportunities

20

25 26

21

2523 23

18 18

1416


54 5148 48

42 39 38 37 37

29

20


% Home Equity Penetration 2

% Checking Penetration 1

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We Manage to Market-Specific Growth Potential

*** YTD Q2 2006

0%

10%

20%

30%

40%

50%

60%

Checking HH Penetration HELOC Share0%

10%

20%

30%

40%

50%

60%

Checking HH Penetration HELOC Share

37%

18%

29%

14%

54%

41%

54%

41%17%

23%

25%

27%

Washington, DC Houston

If D.C. achievesL.A. and Miami penetration levels:

• Incremental 309K HHs

If Houston achievesL.A. and Miami penetration levels:

• Incremental 432K HHs

• Incremental $527M in HELOC production • Incremental $59M in HELOC production

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Small Business Banking Growth Opportunity

Growing credit share to match market penetration

=Additional $20 Billion

in balances

8%

22%

Credit Share Market Penetration

Bank of America Small Business

Customer Penetration

18.2%20.8%

22.4%

2003 2004 2005

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Momentum in Growing Mass Market Small Business($ in billions)

Revenue

Pro forma with MBNA

• Small Business credit growth of 22%

• Total deposit growth of $3.2B (7%)

• Small Business sales growth of 24 %

Net Income

$0.80

$0.90

$1.00

$1.10

$1.20

$1.30

$1.40

2Q 2005 2Q 2006

21% growth

$0.40

$0.50

$0.60

$0.70

$0.80

2Q 2005 2Q 2006

29% growth

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Consumer Credit Continuum

Customer credit needs

Relationship-based Common Decision Engine

Unsecured Lines

StudentLending

Unsecured Credit Card

FirstMortgage

Home Equity

SecuredCredit Card

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Home Equity Leader With Room To Grow

$27

$44$58

$71

2002 2003 2004 2005

Home Equity Balances($in billions)

#1

Matching 8.6%home equity

market shareto 13.5%

retail deposits share

=$43 billion in

incremental balances

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Other Consumer Credit Opportunities

• Mortgage– 5th largest originator in U.S.– $41 billion originations YTD 2Q06

• Unsecured credit– Successful MBNA product– Pilot in L.A., Chicago, Boston

• Student lending– Government guaranteed– Private market

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Card Services Transition

• Transition on target

– Continuing to meet revenue and expense targets

– Affinity card sales now in all BAC channels

• September and October

– Integrated card platform release and customer migration

• Leveraging MBNA judgmental lending and collectionsbest practices

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Card Services Growth in 2006 – Managed Basis

2006 2006June YTD YOY Change (1)

Total Revenue $ 12.2 7%

Provision for Credit Losses 3.5 (24%)

Total Non-Interest Expense 3.9 (10%)

Net Income $ 3.0 91%

Key Measures:Charge-Offs % 3.24% (193) bpsDelinquencies:

30 Day 4.56% 19 bps90 Day 2.20% 18 bps

Risk Adjusted Margin (2) 9.94% 217 bps

($ in billions)

(1) YOY growth is pro forma with MBNA

(2) RAM in managed basis for US Card

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Card Services – Our Unique Model

• Distribution diversity

• Efficiency

• Pricing

• Risk/reward – risk adjusted margin

27

Affinity Banking – a New Growth Engine

• More than 5,000 organizations endorse our products including:

– 1,400 professional organizations

– 900 colleges and universities

– 600 sports related organizations

Bank of America Retail Products and Distribution

NewAffinity Banking Model

+ =MBNA Affinity Relationships

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Online Banking: A Growing Competitive Advantage

Active Online CustomersAre Much More Profitable*

DepositBalances

LoanBalances

Profitability

15%

28% 27%

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

** Q206 includes MBNA

4.06.6 7.4 9.43.2

5.8 7.310.4

Q4 2003 Q4 2004 Q4 2005 Q2 2006

Bill Pay users

7.2

12.414.7

19.8**

19.8 Million OnlineBanking Active Users

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Diversifying Sales & Service Delivery Channels

Product Sales Mix % by Channel(Units Millions)

15.3% 11.6% 13.7%

11.7% 7.7%

13.5%

64.5%

68.4%

68.1%

7.2%

12.3%

4.7%

0

4

8

12

16

20

24

28

32

36

40

44

48

2004 2005 2006Est

Direct Mail

Banking Center

E-Commerce

Other

Channel Diversification

3032

36

Card Sales Mix By Channel

20% 20% 16%

2% 7%8%

22%

34%52%

56%

39%

24%

2004 2005 1Q 06

Optimizing Origination Costs

$30

$140

$50

$113 $98 $78

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In Summary

• Our size and scale is an advantage

• We have grown the business organically

• We are relentlessly focused on continuing to grow

lehman brothers 4th annual conference

Economy & Finance