1. Bank of America
Growth Opportunities in
Global Consumer & Small Business Banking
Liam McGee
President, Global Consumer & Small Business Banking
Lehman Brothers
September 10, 2007
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
• Continuing track record of growth
• Truly differentiated franchise
• Growth opportunities: Deposits and Consumer Credit
• Understanding the contemporary retail environment
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4. Track Record of Growth
Growth Recap
Deposit Households Customer Delight
17% improvement
7% CAGR
26.1
50.3% 49.6%
24.6
42.5%
22.7
Dec 2004 Dec 2005 Dec 2006 2001 2005 2006
Net Income
Revenue
Noninterest Income
Net Interest Income
11% CAGR $11.5
38%
36%
32% $9.3 $9.1
68% 64% 62%
2004 2005 2006
2004 2005 2006
Footnotes:
1-Pro forma with Fleet and MBNA ($ in billions)
2-Bankruptcies reform impacted provision expense by $0.6B in 2005 and ($0.9B) in 2006 on a Net Income basis.
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5. Track Record of Growth
Momentum Continues: Sales and Balance Growth
Total Sales Units (MM)*
2Q07 vs 2Q06
CAGR = 13.8%
% Growth
44.9
41.5
Retail deposit balances 1.3 %
34.3
Consumer card balances 3.6 %
Home equity balances 24.1 %
Small business credit 37.2 %
2004 2005 2006
5 *Pro forma with Fleet and MBNA
6. Differentiated Franchise
We Are Where Customers Want Us To Be
Through…
In our footprint…
• 5,700+ banking centers
• 76% of U.S. population
• 17,000+ ATMs
• 75% of small businesses
• 5,000+ affinity relationships
• 66% all online bill payers
• 63% handhelds reachable
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7. Differentiated Franchise
Adding Density in Important Markets
Chicago Market BAC LaSalle Combined
Banking centers 56 141 197
ATMs 231 450 681
LaSalle
Michigan Market Detroit Other Michigan
Banking centers 160 110 270
ATMs 632 418 1,050
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8. Differentiated Franchise
Unrivaled Distribution System
Can reach 63% 5,700 Banking Centers
handheld devices
Customer
5,000 Affinity Groups
Almost 23MM
Online Users
2.6B Contacts
17,000 ATMs
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10. Growth Opportunities
Deepen Existing Customer Relationships
Market Share And yet…
12.5 million Deposit HHs with a deposit
Deposit #1
product only
Balances
Small Business 2 million Small Business HHs with one
#1
Deposits product only
Credit Card #1 Card customers have $247B of balances
with competitors
Balances
74% of BAC HHs get their HELOC
HELOC #1
elsewhere ($176B)
Originations
10 ALL Information full year 2006 – Includes MBNA Customers
11. Growth Opportunities
Deposit Success
Retail Balances * Debit Purchase Volume
15.7% 16.5%
14.7% 15.7% 15.5%
**Market Share 14.3% 13.3%
14.5% 13.9%
$500 3.50 $200
$463
$169
3.00
$400
26% CAGR
$150
2.50
$300 2.00
$ in billions
$ in billions
$100
1.50
$200
1.00
$50
$100
0.50
$-
$- -
2002 2003 2004 2005 2006
2003 2004 2005 2006
Debit Purchase Volume
Retail Balances Deposit Spread
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*Retail Balances – Pro forma for Fleet & MBNA & Excludes US trust – Market Share includes BAC footprint only
** Market Share estimates as of December for each period. Includes Fleet and MBNA, excludes US Trust.
12. Growth Opportunities
Consumer Credit: Strength With Room to Grow
Total Credit of BAC Customers
$425B $507B $3,836B $70B $4,837B
$4.3 trillion
68%
79% opportunity within
83% 88%
91% existing deposit
customer base
32%
21%
17% 12%
9%
Credit Card Home Equity Mortgage Unsecured Total Credit
On Us Off Us
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13. Growth Opportunities
U.S. Card – Focused on Lower Delivery Costs
• Leveraging banking center and Internet channels
• Greater convenience, lower cost, higher return
*Cost to Acquire $109 $100 $84 $70
17%
24%
37%
41%
Franchise
41%
Direct Mail
37%
Other
27%
24%
Internet
21% Media Marketing
19% 13% 10%
5% 12% 16%
8%
16% 12% 11% 9%
2004 2005 2006 2007
* Actual 2006 cost to acquire 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.
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14. Growth Opportunities
Credit Solutions Continuum
Home Equity
ULOC First Mortgage
Credit Card
Student Loans
Customer credit needs
Relationship-based Common Decision Engine
Delivery channels
ATM Mobile Banking
Banking Centers Call Centers
E-Commerce
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15. Growth Opportunities
Consumer Credit
• Credit losses remain within expected ranges in 2007
• Exited subprime loan origination business in 2001
• Consumer real estate loss ratios remain below industry
averages
• Expect card losses to have peaked in 2Q for the year
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16. Contemporary Retail
Consumer Purchasing Behavior
From . . . To . . .
Awareness
Market-Generated Consumer-Generated
Media Media
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17. Contemporary Retail
Consumer Purchasing Behavior
From . . . To . . .
Social Networks
Institutions
& Communities
Consideration
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18. Contemporary Retail
Consumer Purchasing Behavior
From . . . To . . .
Company-Defined Customer-Defined
Options Options
Shop online, pickup in-store
9 to 5 Purchase
24/7/365
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