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Global Wealth & Investment Management
1. Growth Opportunities in Global
Wealth & Investment Management
Brian Moynihan
President
Global Wealth & Investment Management
2. Global Wealth & Investment Management is a division of Bank of America Corporation. Banc of America
Investment Services, Inc.®, The Private Bank of Bank of America and Columbia Management are all affiliates
within Global Wealth & Investment Management.
Premier Banking & Investments TM is offered through Bank of America Premier Banking® and Banc of America
Investment Services, Inc.
Banking products are provided by Bank of America, N.A., member FDIC.
Investment products:
Banc of America Investment Services, Inc. is a registered broker-dealer, member NASD and SIPC, and a nonbank
subsidiary of Bank of America, N.A.
The Private Bank is a unit of Bank of America, N.A.
Columbia Management is the primary investment management division of Bank of America Corporation.
Columbia Management entities furnish investment management services and advise institutional and mutual
fund portfolios.
The Consulting Services Group is a division of Banc of America Investment Advisors, Inc. (BAIA). BAIA is an
SEC-registered investment adviser and wholly-owned subsidiary of Bank of America, N.A.
Ser Are Not FDIC Insured May Lose Value Are Not Bank Guaranteed
2
3. Global Wealth & Investment Management: Takeaways
• We are a large and profitable competitor in attractive
businesses and markets
• Our competitive position and integrated model provides
strong growth opportunities
• Our best and most efficient way to grow is to leverage the
strength of our franchise
• We are capturing those growth opportunities, but there is
much more ahead of us, and we are continuing to invest
aggressively to capture it
3
4. A Sizeable and Profitable Competitor
2006 ($B) Percent change
Revenue1 $7.8 6.3
Net income 2.4 3.8
Assets under mgt. 542.9 12.6
Total client assets 790.3 11.6
Average loans 61.5 13.7
Average deposits2 115.1 (1.9)
Efficiency ratio 51.5% (0.8)
Return on equity 23.2% 0.7
Associates 13,728 7.4
1Includes $851MM deposit NII on migrated balances
4 2Includes $48.4B of cumulative migrated average balances since 2004
5. 2006 Revenue Mix and Operating Margins
Total Revenue by LOB Total Revenue by Product
Other All Other Income
Columbia 5% 6%
Brokerage Loan NII 13%
Management Premier
Income 8%
20% Banking &
Investments1
48%
Asset Mgt Deposit NII
Fees 36% 34%
The Private
Bank 27%
Residual and Other NII 3%
Line of Business 2006 Revenue 2006 Pre-tax margin
Premier Banking & Investments $3.7B1 57.5%
The Private Bank $2.1B 41.8%
Columbia Management $1.5B 34.5%
1Premier
Banking & Investments revenue shown as internally managed, including impact of migration
5 from Consumer Banking.
6. Peer Comparison: Profitability
4Q06 Pre-tax Earnings of Major Competitors
$956
$759
$649 $625
$520
$361
$249 $242
BAC MER JPM C WB MS AMP NTRS
Pre-Tax Margin 48% 23% 33% 23% 27% 17% 16% 31%
Competitors listed include their respective GWIM-like businesses, based on Bank of America analysis of
6 publicly available earnings reports. Pro forma results reflect adjustments for significant acquisitions along
with other one-time items, and eliminate SFAS 123R stock option expenses where necessary.
9. Trends in Brokerage Transactional/Fee-Based Revenue
Brokerage Revenue ($MM) Net New Self Directed Accounts (000)
21.3
4% $617
10.3
$593
(0.2)
(12.7)
1Q06 2Q06 3Q06 4Q06
2005 2006
Assets Under Management for all Fee-based Solutions and Accounts for Periods Ending 12/31
Accounts Assets
($B) (accounts)
35 100,000
30
80,000
25
20 60,000
15 40,000
10
20,000
5
0 0
2002 2003 2004 2005 2006
9
10. Our Go-to-market Model
Mass Mass Very Mid-Market Large
Wealthy
Market Affluent Wealthy Institutions Institutions
INVESTABLE
ASSETS
To $100K $100K - $3MM $3MM - $50MM $50MM Plus To $250MM $250MM Plus
Banking, Integrated Wealth & Family Office, Investment & Asset
NEED
Borrowing, Banking & Legacy Investment Distribution Policy, Management
Saving Investments Planning Consulting Trustee Services Excellence
Deposits,Loans Plus… Plus… Plus… Foundation, Mutual Funds
Charitable Giving
PRODUCTS
Straightforward Integrated Complex Trust Alternative asset Liquidity
Investment Banking and mgt products Trustee Services Strategies
Alternative
Products Investment
investments Philanthropic and Investment Separate
Insurance Securities Foundation Consulting Accounts
Specialty Asset
Brokerage Services
Management Retirement
Simple Trust PTMS / PIMS Administration
Consumer Premier Banking The Private Bank Family Wealth Columbia
CHANNEL
Philanthropic
Banking & Investments Advisors Management Management
Retirement
Solutions
10
11. Growth Opportunities
• Affluent households own 77% of personal investable assets in
U.S., growing 26% (or 4x rate of U.S. population) from 2006-2010
– We are growing Premier Banking & Investments into the leading
franchise in the underserved mass affluent market.
• Wealthy households own 15% of personal investable assets in
U.S., growing 36% (or 6x rate of U.S. population) from 2006-2010
– With current capabilities and addition of U.S. Trust, we create the
largest private banking franchise in this fragmented market.
• Columbia Management is well positioned on strong investment
performance and strong retail/institutional distribution
– Columbia Management is focused on taking greater share.
11
12. Leveraging the Strength of our Franchise
• 8MM affluent customer
relationships
• Nearly 300,000
wealthy customer
relationships
• Relationships with
30,000 middle market
institutions
• Relationships with 80%
of companies with
pension assets of
$200MM
12
13. Partnerships for Growth: Converted Client Referrals
Why:
• Best way to solve our clients’ needs
Converted Client Referrals
• Deepening relationships with existing
clients represents best opportunity for 155,233
profitable growth
48%
• Leverages strength of our franchise by
generating referrals for all lines of
business 104,879
What’s involved:
• Goals and incentives in all lines of
business
• 46 local markets with GWIM leader
• Personal and institutional client teams 2005 2006
drive teamwork across lines of
business in each market
• Integrated client management process
13
14. Investing Aggressively in Growth
• People
• Training
• Technology
• Marketing
• U.S. Trust acquisition
14
15. Growth Opportunities in
Premier Banking & Investments
Pat Phillips
President, Premier Banking & Investments
15
16. Premier Banking & Investments: Key Takeaways
• Bank of America has invested heavily in a scaled model
that satisfies affluent clients’ banking & investing needs
• The business produces strong growth and profit, and
deepens customer relationships
• We will grow through increased productivity, sales force
expansion and by leveraging the strength of our franchise
16
17. Mass Affluent Segment
Who They Are What They Want
Share of U.S. personal investable assets
Consumer Advice
High Net 9%
Worth
15% Convenience
77%
Respect
Mass
Affluent
Total personal investable assets : $17.5T
17 Source:: IXI Xillionaires 2004-2005
18. How we Serve our Affluent Clients in PB&I
Dedicated Teams of Client
Managers and Financial Advisors
• 4,400 professionals based in
local markets nationwide
Priority service
• Premier Relationship Center
• BAI Investment Centers
• 1,200 professionals
Convenience
• 5,800 stores, 17,000 ATMs
• No. 1 Online Banking
• Leading Online Brokerage
Relationship and Targeted Pricing
• Mortgages
• CD Rates
• Money Market
• $0 Online Equity Trades
18
19. Our Size, Scale and Market Position
4Q06 client balances Market position
• Average deposits of $96.5B • Unique service model
• Average loans of $32.1B • No. 1 affluent deposit market share
• Total client brokerage assets of $187.7B • Highly rated online brokerage platform
• Fee based assets of $18.6B • Integration with Consumer Banking
Relationships With
Mass Affluent Households Product penetration
8MM • 50% of Premier Banking & Investments
customers obtain their first mortgage
through Bank of America
• 74% of Premier Banking & Investments
customers obtain their home equity line /
loan through Bank of America
1.4MM
• Approximately 1/3 of Premier Banking
246K clients have an account with Banc of
America Investment Services, Inc.
Qualified Bank of Premier Only or Premier Banking &
America Customers Investments Only Investments
Combined
Premier
Brokerage
19
20. Improvement Achieved After Client Migration to PB&I
159%
60% Better
22%
Better
Better
8%
Better
Deposits Credit Growth Investment Growth Revenue Growth
PB&I Test and Control Study of Premier Banking clients vs. similar Premier-eligible households
20 that remain in Consumer Banking; results based on two year period from April 2004 to July 2006
21. Delivering Growth Through Deeper Relationships…
PB&I Client Balances1 ($B) PB&I Client Average Loan Balances1 ($B)
CAGR 15% 285
244 32.1
20%
214 97 26.6
94
75 29 Deposits
MM MF
15 20
Other Brokerage
159
124 131
4Q04 4Q05 4Q06 4Q05 4Q06
Premier Households with Brokerage Relationship
10%
246K
223K
21 1
Includes impact from Consumer migration 12/31/05 12/31/06
22. …and Increased Financial Advisor Productivity
Premier Banking & Investments Loans & Deposits Referred to Bankers
Investments Revenue by Financial Advisors
$805 MM 51%
12% CAGR $7.1 B
$4.2 B
$720 MM $3.1 B
2005 2006 2004 2005 2006
Recurring Revenue as a Percentage of Fee Based Assets Under Management ($B)
Investments Revenue 18.6
46%
49% CAGR
40% 13.7
27% 8.7
2004 2005 2006 2004 2005 2006
22
23. Growth Initiatives
• Increased client contact leads to greater client delight
• Improved productivity
– Better use of technology
– Improved client selection
– Continued focus on partnerships
• Expanded sales force
23
24. Percent of PB&I markets with organic deposit growth
Two-Month Moving Average During 2006
70%
60%
50%
40%
30%
20%
10%
Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec
24
25. Growth Initiatives: Expand the Sales Force
5,940
5,581
770 Premier Relationship
5,087
798 Center
4,721 379
756 409 Investment Center
4,048 464
311 315
400 1,946 Financial Advisors
425 1,954
2,134 1,890
221 CRC Client Managers
2,048 75
Premier Client
2,345 2,624 Managers
1,812 2,126
1,175
2003 2004 2005 2006 2007
25
26. Premier Banking & Investments: Key Takeaways
• Bank of America has invested heavily in a scaled model
that satisfies affluent clients’ banking & investing needs
• The business produces strong growth and profit, and
deepens customer relationships
• We will grow through increased productivity, sales force
expansion and by leveraging the strength of our franchise
26
27. Growth Opportunities in
Private Wealth Management
Brian Moynihan
President
Global Wealth & Investment Management
27
28. Private Wealth Management: Key Takeaways
• The Private Bank of Bank of America is positioned for
stronger growth
• The business becomes an even more powerful competitor
combined with U.S. Trust
• We will grow the business by leveraging the franchise and
through more disciplined relationship management
28
29. Wealthy Segment
Share of U.S. Personal Investable Assets Unique needs:
Consumer • Wealthy clients want access to
more specialized and
High Net
Worth 9% customized solutions
15% • 60% have relationships with at
least five providers… but all
want a primary advisor
77%
• Business owners have
Mass accumulated wealth faster than
Affluent industry has adapted to
serving them
Total personal investable assets: $17.5Trillion1
29 1 Source: IXI Xillionaires 2004-2005
30. Combining Strengths to Form Leading Wealth Manager
The New Private Wealth Management at Bank of America
118,000 client relationships
2,500 ultra wealthy client relationships
$270 billion in assets under management
$6B in alternative investments
$16B in specialty asset management
No. 1 private bank and No. 5 wealth manager*
leadership across products, services
offices in 32 states, including CA, CT, MA, NY
strong brand awareness
enormous growth potential
Pending legal closing. The proposed acquisition is subject to regulatory approval and, until such acquisition is consummated,
U.S. Trust Corporation and Bank of America Corporation will remain separate and competing parties.
*Private Bank ranking reflects SEC Filings, Company 10Qs. Wealth Managers ranked by assets, based
30 on individual clients with accounts of $1MM or more, in Barron’s June 30, 2006.
31. Our Size, Scale and Market Penetration
Client balances (2006) Products and services
• Average deposits of $18.9B • Trust and wealth transfer services
• Average loans of $31.2B • Liquidity management
• Assets under management of $171.8B • Comprehensive investments
• Brokerage assets of $28.3B • Credit expertise
• Specialty asset management
BAC Relationships With • Philanthropic services
Wealthy Households • Family Wealth Advisors Facets of Life analysis
669,807
Market position
• Largest private banking footprint in the U.S.
with more than 150 locations
• Leading private bank lender
295,227 • Leading manager of oil and gas properties
• No. 1 trust provider in the U.S.
105,000 • No. 1 in foundation assets among U.S. banks
• No. 1 manager of farm and ranch acreage
Total BAC PB
HNW in HNW Relationships
BAC Clients
Footprint
31
33. Growth Initiatives
• Increase sales capacity Sales People
2,077
2,051
• Enhance client experience and 1,934
improve productivity
– Client Management Process
– Integrated desktop tool
2005 2006 2007
– Private Bank Relationship Center
Client Delight
• Deposits and liquidity (Top 2 Box Delight)
50%
40%
• Alternative investments
• Wealth transfer / business owners
• Focused markets (exit International)
2005 2006
33
34. Private Wealth Management: Key Takeaways
• The Private Bank of Bank of America is positioned for
stronger growth
• The business becomes an even more powerful competitor
combined with U.S. Trust
• We will grow the business by leveraging the franchise and
through more disciplined relationship management
34
36. Asset Management: Key Takeaways
• Columbia Management is well positioned given its scale,
breadth of products and strong investment performance
• We will take share across asset classes by capitalizing on
strong performance and more intensive distribution efforts
• We will compete to win a greater share from Bank of
America’s institutional clients
• Our strategic focus is on alternatives, international and
retirement solutions to drive longer term growth
36
37. Columbia Management
Assets under management: $543B (as of 12/31/06)1 Total Assets Under Management ($B)
26th largest asset manager globally2 Columbia Management and Affiliates
15th largest U.S. based asset manager2
8th largest U.S. mutual fund family3 CAGR 10%
6th largest global money fund manager4
600
$543
AUM By Client Segment (As of 12/31/06) 500 $482
$451
208
400
184
154
28% 27% 300
87
High Net Retail 96 83
Worth 200
100 215 248
201
45%
Institutional 0
2004 2005 2006
Equity Fixed Income Money Mkt/ Other
Columbia Management and its affiliates (quot;Columbia Managementquot;) :Columbia Management and its affiliates comprise the wealth and investment
management division of Bank of America Corporation. As of September 30, 2006, Columbia Management and its affiliates managed assets of $517 billion.
Columbia Management and its affiliates managed assets consists of assets under the discretionary management of the three registered investment
advisors, Columbia Management Advisors, LLC ($331.4 billion), Columbia Wanger Asset Management, L.P. ($30.3 billion) and Marsico Capital
Management, LLC ($76.3 billion); the Bank of America Private Bank; Banc of America Investment Services, Inc.; Banc of America Investment Advisors,
Inc.; Bank of America Capital Advisors, LLC, and Premier Banking & Investments. 2Ranked by worldwide AUM as of 12/31/05, according to Pension &
37 Investments, 5/29/06 3Source: Strategic Insight, 12/31/06; 4) Source: iMoneyNet,12/31/06
38. Integration Highlights
• Reduced number of retail mutual funds by more than 30%
• Consolidated 6 fixed-income product centers into 2
• Consolidated core vendors providing services
• Returned more than $200 million in savings to mutual fund
shareholders through reduced expense ratios, since 2005
38
39. Investment Performance in
Fixed-Income and Money Market
Percentile Rankings for Taxable Fixed-Income & Money Market Funds based on 3-Year Performance
Taxable Fixed-Income Funds Money Market Funds
16th
percentile
38th
percentile
Columbia Taxable Fixed-Income Funds combined average ranking: 38.5th percentile when compared to industry competitors.
Source: Columbia Management based on Morningstar data. Mutual Fund complexes with at least $3 B in assets and 5 taxable fixed
income funds. Rankings include taxable fixed income funds thru 12/31/06
Columbia Money Market Funds combined average ranking: 16th percentile when compared to industry competitors. Source:
iMoneyNet; Money Fund Complexes with at least $10 B in assets and 7 money market funds with similar investment categories as
Columbia Management (account performance is simple weighted) thru 11/30/06
39
40. Stronger Performance, Stronger Sales
Intermediary Net Sales ($B)
3-year CAGR 194% Institutional Short Term Net Sales ($B)
$13.8
$10.2
$10.3
$1.4
2005 2006
$1.6
2004 2005 2006 Institutional Long Term Net Sales ($B)
Intermediary sales rank of 173
wholesale complexes1
($8.6) ($0.6)
1. American Funds
2. Franklin Templeton Investments
3. Oppenheimer Funds, Inc.
4. State Street Global Advisors 2005 2006
5. Columbia Management
40 1
Ranked by 2006 LT and ETF AUM, source: FRC
41. How we Realize Additional Growth
Equity
get our fair share across breadth of product portfolio
Fixed Income
take it to a higher level and grow assets
Cash
build upon our considerable strength
Plus,
greater penetration of Bank of America institutional franchise
41
42. Increase Share With Existing Bank of America Clients
U.S. corporations with pension assets of $200MM or more hold $2.9T in assets
80% are
Bank of
America
clients
Columbia
Management
share is < 3%
42
43. How We Realize the Opportunity
• Hired new head of distribution
• Rebuilding the sales team
• Broadening consultant advisory team
• Aligning ourselves with Client Management Process in GCIB
43
45. Asset Management: Key Takeaways
• Columbia Management is well positioned given its scale,
breadth of products and strong investment performance
• We will take share across asset classes by capitalizing on
strong performance and more intensive distribution efforts
• We will compete to win a greater share from Bank of
America’s institutional clients
• Our strategic focus is on alternatives, international and
retirement solutions to drive longer term growth
45
46. Global Wealth & Investment Management: Summary
• We are a large and profitable competitor in attractive
businesses and markets
• Our competitive position and integrated model provides
strong growth opportunities
• Our best and most efficient way to grow is to leverage
the strength of our franchise
• We are capturing those growth opportunities, but there is
much more ahead of us, and we are continuing to invest
aggressively to capture it
46
