Bank of America Card ServicesBank of America Card Services

John Cochran, Business Development ExecutiveHenry Fulton, Sales Executive

March 17, 2006

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Forward Looking StatementsForward 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) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; and 10) 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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Card Services ProfileCard Services Profile

• $189 billion in Managed Loans– U.S Credit Card loans of $153 billion

– International card business $23 billion in loans in 3 countries

– Consumer Finance business with $13 billion

Card Services19%

GCSB (excl Card services)

23%

Global Consumer & Small Business

42%

Bank of America businesses other than

Global Consumer & Small Business

58%

Bank of AmericaGlobal Consumer & Small

Business (GCSB)

Based on 2005 Net Income 1

1 2005 net income includes GAAP earnings for BAC and MBNA combined

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Top U.S. Credit Card IssuersTop U.S. Credit Card Issuers

$153$139

$114

$73

$54$44

$0

$20

$40

$60

$80

$100

$120

$140

$160

$180

Bank of

America

JP Morgan

Chase

Citigroup American

Express

Capital

One

Discover

$ i

n B

illi

ons

Source: Nilson Report, 50 Largest Bank Credit Issuers in the US – 2005; company reports (excludes private label)

With $153 billion in outstanding loans, Bank of America is the leading

credit card issuer in the U.S…

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Top U.S. Credit Card IssuersTop U.S. Credit Card Issuers

4.5%

3.5%

1.8%

-2.7%

-3.7%-5.0%

-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

Bank of

America

JP Morgan

Chase*

Capital One Discover Citigroup

Loan G

row

th

Source: Company reports* JP Morgan Chase growth rate excludes impact of Sears Canada acquisition

… and we continue to report growth rates that are among the highest in the industry.

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Net Credit LossesNet Credit Losses

1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05

BAC/MBNA Combined

Industry

Source: Visa/MC reports; excludes impact of bankruptcy filings in 4Q05

Losses in the combined portfolio remain below the industry average.

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Return on Managed Credit Card Assets - 2005Return on Managed Credit Card Assets - 2005

2.0%

1.4%1.2%

0.0%

0.5%

1.0%

1.5%

2.0%

2.5%

3.0%

Bank of

America

MBNA Citigroup JP Morgan

Chase

Discover

Retu

rn o

n A

ssets

Source: Company reports

Bank of America’s U.S. credit card portfolio has the highest return among

the card portfolios of commercial banksCombined ROA ~ 2.4%

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Bruce HammondsBank of America

Card Services

John CochranBusiness Development

Henry FultonSales

Lance WeaverInternational

Ric StruthersService & Fulfillment /

Card Ops / Risk

Leadership StrengthLeadership Strength

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Our Customer Approach: Affinity MarketingOur Customer Approach: Affinity Marketing

• “Success is Getting the Right Customers…and Keeping Them”

• To get the right customers, we developed affinity marketing—selling to people with a strong common interest.

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Affinity Marketing CustomersAffinity Marketing Customers

• Affinity customers have better credit experience.

• Use their cards more.

• Carry a larger balance.

• Will use other Bank of America endorsed products.

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• Affinity and Business Partners

– 81% endorse 2 or more products

– 68% endorse 3 or more products

• Customers

– 20% use multiple products

Have a propensity to accept multiple endorsed products.

Have a propensity to accept multiple endorsed products.

Example:

National Education Association

–More than one-third of teachers nationwide carry MBNA cards

–$2.6 billion in credit card loans

–$775 million in other consumer loans

–$4.2 billion in deposit balances

Affinity Marketing CustomersAffinity Marketing Customers

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Dominance in Affinity MarketingDominance in Affinity Marketing

• More than 5,000 organizations endorse our products including:

– 1,400 professional organizations

– 900 colleges and universities

– 600 sports related organizations

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• More than 300 Financial Institution partners with nearly $19 billion in outstanding loans

– Banks & Credit Unions – PNC Bank, AmSouth Bank, Desert Schools Federal Credit Union

– Brokerages – Fidelity, Merrill Lynch, Charles Schwab

• Continue to pursue relationships with financial institution partners., Since the announcement of the merger:

– Signed 7 new partnership agreements

– Renewed relationships with more than 50 partners

Affinity Marketing – Financial InstitutionsAffinity Marketing – Financial Institutions

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International Affinity MarketingInternational Affinity Marketing

• 9 million accounts

• $23 billion in loans

• 1,100 endorsements

• Exploring opportunities in China & Latin America

Spain

United Kingdom

Ireland

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• $13 billion of outstanding loans

• 1.5 million accounts

• Unsecured consumer loans

• Practice Finance

• Aircraft Lending

Consumer FinanceConsumer Finance

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MBNA Brings:• Best-in-class credit quality• International presence

– Leading market positions in Canada, UK, Ireland and Spain

• Affinity Relationships– More than 5,000 affinity

partners worldwide• Experienced management team• Proven marketing skills• Service focus

Unparalleled Distribution and ConvenienceStores Online Banking ATMs Telephone

Bringing Together Superior Distribution With ProductsBringing Together Superior Distribution With Products

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Relationship Strategy Means Growth and ProfitabilityRelationship Strategy Means Growth and Profitability

Card Strategy: Growing Card Accounts Through Relationship ChanneCard Strategy: Growing Card Accounts Through Relationship Channels ls

Banking CentersCall CentersATMs

42% of 2005 New Accounts*

RelationshipChannels

Lower RiskMore InformationLower Cost to AcquireHigher Retention

Key Strategic Attributes

More Profitable Accounts

Result

Power of Customer

Information

High Return on Assets

* BAC new accounts only.* BAC new accounts only.

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Maximizing Relationship ValueMaximizing Relationship Value

* Full* Full--Year 2005 data based on average account performance. Year 2005 data based on average account performance.

Relationship customers perform better than single service card uRelationship customers perform better than single service card users*:sers*:

35% lower loss rate …

35%

90%

… generating a 90% higher profit before taxes per account…and a 30%

lower voluntary attrition rate …

30%

Charge-Offs

Attrition

Pretax Net Income

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Realizing the Power of the FranchiseRealizing the Power of the Franchise

*Legacy BAC data only

12%

22%

65%

17%

34%

49%

0%

25%

50%

75%

100%

2004 2005

Credit Card New Account Channel Mix*

Direct MailStoresOther

Channel Mix:

• New Account Mix is shifting dramatically

Faster growing channelsLower cost channels

• Banking Center card sales grew 37% in 2005

Bank of America’s distinct distribution network is a critical factor in delivering superior results.

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Affinity Marketing: Expanding the Power of the FranchiseAffinity Marketing: Expanding the Power of the Franchise

MBNA Acquisition Delivers More Power to BAC Franchise: MBNA Acquisition Delivers More Power to BAC Franchise:

5,000 Endorsing Organizations24 Million Affinity Card Customers

MBNA Affinity Marketing Assets

5,800 Banking Centers17,000 ATMs15 Million On-Line Customers#1 Deposit Market Share#1 Small Business Lender#1 Home Equity Lender#1 Debit Card Share

Bank of America Retail Product and Distribution

Leverage Customer PassionsManage Customer InformationCross-Sell Banking Products

Next Generation Relationship Model+ =

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BAC (Pre-MBNA) Consumer Card

Portfolio Composition

Combined Consumer Card Portfolio Composition

Relationship Opportunities

Retail Banking Products:• Over 20 million single service

customers from MBNA73% in BAC footprint79% endorsed product

Credit Cards:• 34% Card penetration into

relationship customers

Balance Transfers:• Relationship customers carry

competitor cards with at least $40B* in balances

* Excludes balances of legacy MBNA relationship customers held* Excludes balances of legacy MBNA relationship customers held at competing card issuers (information not yet available).at competing card issuers (information not yet available).

Single Service

Customers59%

Relationship Customers

41% Single Service

Customers75%

Relationship Customers

25%

Cross-Sell Opportunity: Relationship and Single Service CustomersCross-Sell Opportunity: Relationship and Single Service Customers

$61 Billion Portfolio $145 Billion Portfolio

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Cross-Sell Opportunity: Geographic PocketsCross-Sell Opportunity: Geographic Pockets

New York:• BAC has 4% deposit share

(#6 behind Chase, Citi and others)

• Approximately 2 million MBNA card customers without a BAC retail relationship

• Opportunity to cross-sell BAC retail products to MBNA card customer base

California:• BAC is deposit market leader (19% share)• Approximately 1,000 Banking Centers• Limited retail presence by major credit card issuers• Opportunity to offer affinity products (especially

cards) to CA retail customer base

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Cross-Sell Opportunity: Next Generation Relationship ModelCross-Sell Opportunity: Next Generation Relationship Model• Expanding the Customer Relationship Through Affinity

Customer Profile:• Practicing dentist, member of Massachusetts Dentist Society• Graduate of Univ. of Massachusetts College of Dentistry (5 years out)• Starting his own dental practice • Fan of the New England Patriots

Relationship Umbrella

The Difference is DISTRIBUTION!

Passion:New England Patriots Extra Points Credit Card Small Business Owner:

Practice LendingSmall Business CheckingSmall Business CardMerchant Services

Professional:Massachusetts Dentist Society (MDS) Credit CardMDS Checking and DebitMortgageInvestments (Mass Affluent)

Today

Near-Term

Future State

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Cross-Sell Opportunity: Next Generation Relationship ModelCross-Sell Opportunity: Next Generation Relationship Model

• Expanding the Affinity Relationship Through Comprehensive Bank ProductsAffinity Profile:• Large nationally recognized university• “Members” includes students, alumni, parents of students• Employs thousands of faculty, staff and service support• Requires variety of business and financial services

Relationship Umbrella

Members:Alumni Credit CardsStudent Credit CardsCheckingMortgageHome Equity

Employees:Group BankingOn-Site ATM Business:

Commercial Real EstateMerchant ServicesTreasury Management

Today

Near-Term

Future State

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