#1Goldman Sachs Banking and Financial Services Conference December 6, 2000 Ken Lewis President & Chief Operating Officer Jim Hance Vice Chairman & Chief Financial Officer Bank of America#2Forward Looking Statements This presentation contains forward looking statements with respect to the financial conditions and results of operations of Bank of America, including, without limitation, statements relating to the earnings outlook of the company. These forward looking statements involve certain risks and uncertainties. Factors that may cause actual results to differ materially from those contemplated by such forward looking statements include, among others, the following possibilities: (1) projected business increases following process changes and other investments are lower than expected; (2) competitive pressure among financial services companies increases significantly: (3) costs or difficulties related to the integration of acquisitions or expenses in general are greater than expected; (4) general economic conditions, either internationally or nationally or in the states in which the company does business, are less favorable than expected; (5) changes in the interest rate environment reduce interest margins and affect funding sources; (6) changes in market rates and prices may adversely affect the value of financial products: (7) legislation or regulatory requirements or changes adversely affect the businesses in which the company is engaged; and (8) decisions to downsize, sell or close units or otherwise change the business mix of the company. For further information please see Bank of America's reports filed with the SEC pursuant to the Securities Exchange Act of 1934 which are available at the SEC's website (www.sec.gov) or at Bank of America's website (www.bankofamerica.com) Bank of America 1#3Today's Topics Business strategy > Current trends > Growth engines Business transformation Financial initiatives and outlook > Credit quality New financial measurements Balance sheet & capital management ► Outlook Bank of America 2#4Long and Short-Term Challenges Manage credit 2000 Grow core earnings 2001 2002 2003 2004...... Bank of America#5Changing the Model Revenue growth allows for investments in the future 10% 8%- 5% 3%- 0%- 5% 1% Scenario 1 7% 4% 9% Scenario 2 Revenue growth Expense growth 8% Scenario 1995-1999 CAGR Revenue 8% Expense 5% All scenarios yield double digit core earnings growth . Bank of America#6Strong Core Businesses 9 mos. YTD 2000 Bank of America Revenues $25.2 billion Equity Investing 4% Other 1% Asset Management 7% Consumer and Commercial Banking 60% Global Corporate & Investment Banking 28% Commercial 15% Global Treasury Services 15% Global Credit Products 33% Consumer Products 27% Global Markets 19% Banking -Regions 58% Bank of America Global Capital Raising 33%#7Revenue Per Share $ per share 16 12 CO A Total revenue per share growth - 8% 0.13 7.84 5.91 13.88 9 mos. YTD 99 Noninterest income 0.01 8.33 6.69 15.03 9 mos. YTD 00 Net interest income Net interest income growth - 6% Noninterest income growth 13% Securities Gains Bank of America#8Fee-Based Revenue Per Share $ per share $8 $6 $ $2 $0 Total noninterest revenue per share growth, excluding "other income" 22% 3.65 1.61 0.65 5.91 9 mos. YTD 99 4.12 2.29 0.28 6.69 9 mos. YTD 00 Non-market sensitive revenue growth - 13% Market-sensitive revenue growth - 42% Other income Market-sensitive fees |Non-market sensitive fees Bank of America 7#9Consumer & Commercial Banking Momentum 6,000 5,000 4,000 20% 18%- 15% 13%- 10% 8% 5,029 1Q99 13% 2Q99 2Q99 14% Revenue ($ in millions) 3Q99 3Q99 16% 4Q99 Linked-quarter Annualized Loan Growth 4Q99 1000 16% 5,317 11 3Q00 1000 2Q00 16% 2000 10% 3Q00 Bank of America#10Asset Management Momentum Revenue ($ in millions) illll 1Q99 2Q99 3Q99 4Q99 600₁ 500- 400- 300 225- 150 75 0 490 235 69 Assets Under Management ($ in billions) 555 3Q00 275 100 1Q99 2Q99 3Q99 4Q99 1000 2000 3000 Total Assets Under Management Mutual Fund Assets Asset Profile - As of 9/30/00 $275 billion 48% 16% 36% Equity Fixed Income Cash Bank of America#11Global Corporate & Investment Banking Momentum 100% 80% # 20 60% 40% 20% 0% 1% YTD99 11% Revenue Growth # 10 $6.25 billion 24% 22% 17% 37% YTD 99 Mergers and Acquisitions 7% YTDOO *************⠀⠀⠀⠀⠀⠀⠀⠀⠀**** *** ****** $6.94 billion www am INNAN HENK Test matatang ZAMERIbarns 33% 19% 15% 33% YTD 00 # 14 Global Capital Raising Global Markets Global Treasury Services Global Credit Products Equity Underwriting 1% YTD99 #10 3% YTDOO Bank of America 10#12Revving the Growth Engines ◆ Asset management ◆ Card services / payments E-commerce Investment banking National brand Bank of America 11#13Transforming Bank of America 160% 120% 80% 40% 0% 1994 1995 Money funds CAGR - 16% 1996 Bank deposits Bank deposits CAGR - 5% 1997 1998 - Money funds 1999 2000 Bank of America 12#14Financial Initiatives and Outlook Credit quality New financial measurements ◆ Balance sheet & capital management ◆ Outlook Bank of America 13#15Appropriate Reserve Levels Loan Portfolio Breakdown $403 Billion as of 9/30/00 Mortgage & Home Equity- 29% Commercial & Comm'l R/E 51% Card 3% Other Consumer 17% Mortgage & Home Equity 4% Commercial & Comm'l R/E 55% Reserve Allocations $6.7 Billion as of 9/30/00 Card 7% Other Consumer 17% Unassigned 17% Bank of America 14#16Comparative Reserve Adequacy Commercial R/E Bank of America Loan Mix Commercial Commercial R/E 12% Commercial 48% Mortgage & Home Equity 29% Peer* Loan Mix Card 3% Other Consumer 17% Mortgage & Home Equity 21% Card Other Consumer 15% Allowance as a % of Loans 2.00% 1.75%- 1.50%- 1.92% 1.77% 1.67% Peer* additional required reserve levels to match Bank of America coverage Peer* group Chase Manhattan includes 9 large regional banks and Bank of America Peer* Reserve Coverage Bank of America Reserve Coverage#17Loan Portfolio Diversity Total Loans $403 Billion Consumer Finance Real Estate Secured Residential Real Estate Secured 29% Bankcard Consumer 49% Other Consumer 13% 1 1 Real Estate 7% Transportation 3% Media 2% Equipment and gent mig 2% Business services 2% Telecom Agnbusiness 2% Retail Autos Health Care Other Comml < 2% 25% Commercial 51% Bank of America All#18New Corporate Scorecard Business Segment Financial Measures Corporate Financial Measures Revenue growth Revenue growth Loan mix Change in SVA Change in SVA Tier 1 Capital ROE Return on Equity Loan loss reserve EPS growth Net charge- offs Bank of America#19Balance Sheet Tactics Reduce > Low margin / non-strategic corporate loans > Mortgage loans Trading account assets Replace > Maturing securities with off-balance sheet instruments Grow > Credit card loans > Other consumer loans > Small business / middle market loans Bank of America 10#20Capital Management Substantial earnings and capital generation > Cash flow of approximately $12 billion Refinement of capital allocations ◆ Limited increase in risk-weighted assets Excess capital after funding growth businesses ▸ Dividend increase averaged 13% over the past 20 years ▸ Share repurchases @ Repurchased 128 million shares in 15 months New 100 million share program approved in July 2000 Bank of America#21Long and Short-Term Challenges Manage credit 2000 Grow core earnings 2001 2002 2003 2004..... Bank of America 20#22Fourth Quarter Issues Continued momentum in core businesses dampened by two issues: ◆ Credit quality > FFIEC > Exposure to large credit > Additional deterioration ◆ Capital markets volatility > Syndications > Underwriting > Trading > Equity investments Bank of America 21#232001 Outlook Soft landing scenario Continued progress in majority of core businesses Higher credit costs Lackluster capital markets environment Bank of America#24Positioned for Future Growth Growth Franchise: #1 in top 4 growth states #1 or 2 in 16 of 21 franchise states Franchise population growth nearly 3 times remainder of U.S. Online customer growth 69% since 9/30/99 Opening 250,000 checking accounts monthly Delivery Superiority: 4.500 banking centers 14,000 ATMs ◆ 600 in-store branches 1.5 million telephone banking calls per day 145,000 associates 8.5 million monthly visits to BankofAmerica.com Touch customers 7 million times daily Customer Base: 1 out of every 4 households 2 million businesses 2.8 million online customers Banking relationships with 85% of Fortune 500 Serve customers in 190 countries Consumer Product Depth: Asset management • Card products Consumer finance . Mortgage Small business lending Corporate • Debt & equity underwriting • Foreign exchange . M & A advisory Real estate finance Syndicated lending • Treasury services NO Bank of America 23