1) The document discusses Bank of America's enterprise risk management strategies and capabilities. It highlights how the bank manages various types of risk, including credit, market, and operational risk across its consumer and commercial businesses. 2) Key strengths that help the bank manage risk include its breadth of client access, industry insights, and integrated risk management structure. 3) The bank has improved its risk profile by rebalancing its commercial credit portfolio and enhancing risk monitoring tools.

1. Enterprise Risk Management
Amy Brinkley
Chief Risk Officer

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.
2

3. Our Core Capability is Managing Risk to Enable Growth
• Begins with a culture of
performance management and
accountability
• Comprehensive & dynamic:
Credit, Market, Operational
and Strategic
• Forward-looking: Insight and
information to define risk
appetite and to grow
Sustainable growth
3

4. Protecting and Growing Shareholder Value
Changing Environment: Competitive Advantages:
• Evolving customer needs • Unique insight
• Unprecedented • Broad capabilities to take
liquidity and manage risk intentionally
• New global realities • Comprehensive and
integrated management of
risk and reward
Our processes identify opportunities and risks that
drive changes to our business models.
4

5. Positioning our Economic Capital for Growth
2000 2006
Capital Net Income Capital Net Income
100% 100% 100% 100%
GCSBB 29% • Capital well aligned to
48% 50% 53% earnings and clients
• Supports consumer growth
initiatives
GCIB 50% • Focused reduction in GCIB
credit capital
36% 33%
32%
• Created more capital
GWIM 6% velocity in GCIB
8% 8%
Other 11%
15%
8% 9%
4%
5

6. Consumer Health
Household Balance Sheet
(as of September)
60,000
40,000
$B
20,000
0
(20,000)
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
Real Estate Assets Financial Assets Liabilities Net Worth
• 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
6 Source: Federal Reserve, Flow of Funds

7. Our Managed Consumer Portfolio is a Balanced Mix of
Traditional Products
Total Consumer Average Balances
$553.6B
Other Consumer
DFS 6% 3%
Consumer Finance
4%
Foreign Consumer
Card 5% Residential Mortgage
42%
US Consumer Card
25%
Home Equity
15%
• 8% YOY Growth
• 57% Consumer Real Estate
• 30% Consumer Card
7

8. Consumer Real Estate Asset Quality
1st Mortgage- Originated and Serviced
Avg. FICO 729
Avg. LTV 57%
31%
1st Mortgage- Serviced By Others
42%
Avg. FICO 750
Avg. LTV 56%
27%
Home Equity
Avg. FICO 724
Avg. LTV 63%
Asset Quality of the
Consumer Real Estate portfolio is strong.
8 Note: All FICOs and LTVs current or refreshed

9. Proprietary Insight as a Competitive Advantage
Relationship Results in Improved Credit Performance
Credit Performance of Total Market
Credit Performance, both “On-Us” & “Off-Us”, of a
BAC Customer with a Large Deposit Balance
Delinquency Rate
Credit Performance, “On-Us” only, of a BAC
customer with a Large Deposit Balance
At the same credit score,
relationship customers
outperform the market
Low Credit Score Credit Quality High Credit Score
• 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
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10. Commercial Health
Current vs. Projected S&P Earnings Growth
• Corporate profits continue to grow
Quarterly S&P 500 Earnings Growth
Projected Growth Start of Quarter Actual (blended) Growth
30%
• Credit statistic trends remain First Call
Analyst
25%
favorable Estimates
20%
• Market liquidity is strong 15%
10%
5%
E
E
03
04
05
03
04
05
06
06
07
2Q
2Q
4Q
4Q
4Q
2Q
2Q
4Q
2Q
Source: Thompson Financial
High Grade Leverage and Coverage High Yield Leverage and Coverage
Median Ratio LTM EBITDA to LTM Interest Expense
Median Ratio LTM EBITDA to LTM Interest Expense
Median Net Leverage Median Coverage
Med Net Debt Leverage Med Coverage
Median Ratio of Net Debt to LTM EBITDA
Median Ratio of Net Debt to LTM EBITDA
8.0
2.7 4.3 4.1
7.5 4.1 3.9
2.5
7.0 3.9 3.7
2.3 3.7
6.5 3.5
3.5
2.1 3.3
6.0 3.3
1.9 3.1
5.5 3.1
2.9 2.9
1.7 5.0
2.7 2.7
1.5 4.5
2.5 2.5
2
4
6
8
6
0
0
2
4
96
04
06
95
97
98
99
00
01
02
03
05
-9
-9
-9
-9
-0
-9
-0
-0
-0
ar
ar
ar
ar
ar
ar
ar
ar
ar
1Q
1Q
1Q
1Q
1Q
1Q
1Q
1Q
1Q
1Q
1Q
1Q
M
M
M
M
M
M
M
M
M
Source: Banc of America Securities, LLC and Factset. Source: Banc of America Securities, LLC and Factset.
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11. Managing Commercial Credit Risk
Our Strengths Advantages in Managing Risk
• Breadth of client access • Industry insights and focus
• Capital markets and • Market knowledge enabling
distribution an originate to distribute
strategy
• Integrated risk structure • Managing risk globally across
products and client segments
11

12. Commercial Credit Risk Profile
Commitments as of 12/31/06 Average Funded Commitments 4Q06
$618.0B $238.5B
Business Capital
2% DFS Business Capital Aviation
Aviation
4%
DFS Corporate Banking
2% 1%
Business Banking 0% Corporate Banking 3% 23%
4% 44% Business Banking
7% GIB
Leasing GMG
5% Leasing 18% 5%
CREB GIB
11% 33% 9%
CB Regions CREB
GMG Other
22% 14%
11% 17%
Other CB Regions
Commercial Banking 10% 22% Other
46% 17%
Commercial Banking
Other 60%
10%
• Rebalanced the portfolio
• Improved risk evaluation and monitoring tools
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13. Commercial Credit Industry Profile
Commitments by Industry
12/31/06
Technology*
3% Other* Real Estate
7% 12%
Energy*
6%
Media & Telecom* Diversified financials
4% 11%
Food Products*
4%
Commercial services Retailing &
and supplies Consumer Products*
4% 9%
Materials Government & public
5% education
6%
Individuals and trusts
5% Capital Goods
Healthcare 6%
Consumer services
equipment and
5% Banks & insurance*
services
8%
5%
• Effective management of industry and single name concentrations
• Increased distribution risk in high-return leveraged finance activities
• Improved revenue mix and more efficient use of capital
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14. Credit Comments
($MM) Average Expected
Actual Losses
Balances Average
CONSUMER (Managed) 4Q06 2005 2006 Over a cycle
Consumer Real Estate $316,058 0.03% 0.03% <10 bps
Consumer Credit Card* 165,991 5.54% 3.90% 500-550 bps
Other Consumer 71,524 2.30% 1.45%
Total Consumer 553,573
*Average Annual RAM: 7.5 - 8.5%
COMMERCIAL (Held)
Corporate Banking 51,261 (0.27%) (0.14%) 30-60 bps
Commercial Banking 143,293 0.20% 0.04% 30-60 bps
Other Commercial 43,900 0.72% 0.72%
Total Commercial $238,454
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15. Managing Market Risk
VaR
• Directionality New Products
• Volatility • Risk forums
• Correlation • New Products
• Concentration Committee
Market
Risk
Stress Analysis Counter Party Risk
• Historical simulation • Ongoing due diligence
• Event specific scenarios • Market focused
• Hypothetical scenario • Collateral requirements
• Business specific Proactive Risk Mitigation
stress • Market focused
• Structuring risk
• Hedging
• Integrated Risk Management (Market, Credit, Structuring) aligned with
each business line
• Risk limits set to encourage velocity and distribution
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16. Improved Revenue Generation From Market
Based Activities
Histogram of Daily Market Related Trading Revenue
90
2005 2006
80
70
Number of Days
60
50
40
30
20
10
0
less than -20 to - -10 to 0 0 to 10 10 to 20 20 to 30 30 to 40 40 to 50 greater
-20 10 than 50
Revenue ($MM)
• 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
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17. Managing Operational Risk
• Information security
• Business continuity
• Vendor management
• Talent
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18. Protecting and Growing Shareholder Equity
Changing Environment: Competitive Advantages:
• Evolving customer needs, • Unique insight
intense competition
• Broader capabilities, more
• Unprecedented liquidity, choices to take and manage
convergence of risks risk more strategically
• Manage all risks that impact
• New global realities our business
18