1. Bank of America
Growth Opportunities in Consumer
and Small Business Banking
Liam McGee
President
Global Consumer & Small Business Banking
Lehman Brothers
September 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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3. Global Consumer & Small Business Banking
1. Size and scale matter
2. Track record of growth
3. We will continue to grow
3
4. Size & Scale Matter
Geographic Diversity – Across U.S. Growth Markets
2Q06 YTD Earnings of $5.8 billion
Out of Footprint
West 18%
Northeast
17%
15%
Community
11%
Southwest
East
13%
22%
4
5. Size & Scale Matter
Earnings Diversity – Strong Foundation for Growth
2Q06 YTD Earnings of $5.8 billion
Mortgage
2%
Card Services
51% Home
Equity
4%
Other
Deposits 1%
42%
5
6. Size & Scale Matter
Channel Diversity – Any Way Customers Choose
Banking
Centers
Affinity
ATM
Groups
Customers
& Clients
Sales
e-Commerce
Forces
Phone
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7. Size & Scale Matter
Pricing/Value – Ability to Price Below Average and Grow
Growing Deposits While
15% Lagging Rates Paid 100%
12% 80%
9% 60%
6% 40%
3% 20%
0% 0%
Q304 Q404 Q105 Q205 Q305 Q405 Q106 Q206
Cumulative consumer deposit growth
% of Fed Funds hikes passed on – cumulative
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8. Size & Scale Matter
Efficiency – Economies of Scale Achieved While Growing
Pro forma Global Consumer & Small
Business Banking efficiency ratio
55%
53%
50%
50%
45%
45%
40%
YTD 2004 YTD 2005 YTD 2006
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9. Size & Scale Matter
Resources – Capacity to Invest in People, Productivity
New and
Refurbished
Stores
ATM
Check
Imaging Online Banking
Enhancements
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13. Track Record of Growth
Growing Customer Relationships
Net New Checking Accounts New Debit Cards
2,300,000
2,063,000 4,829,000
4,100,000
1,304,000 3,200,000
1,192,000 2,603,000
2,500,000
443,000
2002 2003 2004 2005 2QYTD06
2002 2003 2004 2005 2QYTD06
Home Equity Production (in $ billions) New Franchise Consumer Credit Cards
2,196,000
72.0
61.0 1,784,000
1,565,000 1,554,000
39.7 1,250,000
38.0
30.0
2002 2003 2004 2005 2QYTD06 2002 2003 2004 2005 2QYTD06
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14. Top Line and Bottom Line Growth
Pro forma with Fleet and MBNA ($ in billions)
Revenue Return on Equity
$25 7% CAGR 20% 18.1%
15.8%
20.7 15% 14.2%
$20 18.9
18.0
10%
$15
5%
$10 0%
1st Half 2004 1st Half 2005 1st Half 2006 1st Half 2004 1st Half 2005 1st Half 2006
Net Income
$6 $5.8
17% CAGR
$5
$4.6
$4.2
$4
$3
1st Half 2004 1st Half 2005 1st Half 2006
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15. We Will Continue to Grow
Growth Opportunities
• Market optimization
• Mass market small business
• Consumer credit continuum
• Credit card
• Affinity banking
• Online banking / channel diversification
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16. Optimizing Market Opportunities
% Household Penetration Share 1
61
55 53 53
46
42 41 40 40
32
23
LA Seattle Miami San Fran Boston Phoenix Dallas Atlanta DC Houston NY
16 ‘1 HH penetration equal to HHs with BAC deposit acct. divided by number of HHs in market
17. Optimizing Market Opportunities
54
51 % Checking Penetration 1
48 48
42 39 38 37 37
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20
LA Seattle Miami San Fran Boston Phoenix Dallas Atlanta DC Houston NY
% Home Equity Penetration 2
26 25
25
23 23
21
20
18 18
16
14
LA Seattle Miami San Fran Boston Phoenix Dallas Atlanta DC Houston NY
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
18. We Manage to Market-Specific Growth Potential
Washington, DC Houston
60% 54% 60% 54%
50% 50%
17% 41% 41%
40% 40% 25%
30% 37% 23% 30%
27%
20% 20%
29%
18%
10% 10%
14%
0% 0%
Checking HH Penetration HELOC Share Checking HH Penetration HELOC Share
If D.C. achieves If Houston achieves
L.A. and Miami penetration levels: L.A. and Miami penetration levels:
• Incremental 309K HHs • Incremental 432K HHs
• Incremental $527M in HELOC production • Incremental $59M in HELOC production
18 *** YTD Q2 2006
19. Small Business Banking Growth Opportunity
Bank of America
Small Business
Growing credit share to
Customer Penetration
match market penetration
20.8%
22.4% =
Additional $20 Billion
18.2%
in balances
22%
8%
2003 2004 2005 Credit Share Market Penetration
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20. Momentum in Growing Mass Market Small Business
($ in billions)
Revenue Net Income
$1.40 $0.80
21% growth 29% growth
$1.30
$0.70
$1.20
$1.10 $0.60
$1.00
$0.50
$0.90
$0.80 $0.40
2Q 2005 2Q 2006 2Q 2005 2Q 2006
• Small Business credit growth of 22%
• Total deposit growth of $3.2B (7%)
• Small Business sales growth of 24 %
20 Pro forma with MBNA
21. Consumer Credit Continuum
Customer credit needs
Student Secured Unsecured First Home Unsecured
Lending Credit Card Credit Card Mortgage Equity Lines
Relationship-based Common Decision Engine
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22. Home Equity Leader With Room To Grow
Home Equity Balances
($in billions) Matching 8.6%
home equity
market share
#1 to 13.5%
$71
retail deposits share
$44
$58
=
$43 billion in
$27 incremental balances
2002 2003 2004 2005
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23. Other Consumer Credit Opportunities
• Mortgage
– 5th largest originator in U.S.
– $41 billion originations YTD 2Q06
• Unsecured credit
– Successful MBNA product
– Pilot in L.A., Chicago, Boston
• Student lending
– Government guaranteed
– Private market
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24. Card Services Transition
• Transition on target
– Continuing to meet revenue and expense targets
– Affinity card sales now in all BAC channels
• September and October
– Integrated card platform release and customer migration
• Leveraging MBNA judgmental lending and collections
best practices
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25. Card Services Growth in 2006 – Managed Basis
($ in billions)
2006 2006
June 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) bps
Delinquencies:
30 Day 4.56% 19 bps
90 Day 2.20% 18 bps
Risk Adjusted Margin (2) 9.94% 217 bps
(1) YOY growth is pro forma with MBNA
(2) RAM in managed basis for US Card
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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 New
MBNA Affinity
Relationships + Retail Products
and Distribution
Affinity Banking
Model
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28. Online Banking: A Growing Competitive Advantage
19.8 Million Online Active Online Customers
Banking Active Users Are Much More Profitable*
19.8**
28% 27%
14.7
12.4 10.4
7.3 15%
7.2 5.8
3.2 9.4
6.6 7.4
4.0
Q4 2003 Q4 2004 Q4 2005 Q2 2006 Deposit Loan Profitability
Balances Balances
Bill Pay users
* Three years after going online, combined access-only
and bill pay customers
** Q206 includes MBNA
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