Wachovia Earns $6.3 Billion, EPS of $3.26 Per Share in Full Year 2007

In tough economic environment, 4th quarter net income was $51 million, or 3
cents per share

CHARLOTTE, N.C., Jan. 22 /PRNewswire-FirstCall/ --

4th QUARTER 2007 COMPARED WITH 4th QUARTER 2006

- Lower earnings largely reflect the effect of continued disruption in
the capital markets, which resulted in net valuation losses of $1.7
billion as well as a provision for credit losses of $1.5 billion, which
exceeded net charge-offs by $1.0 billion.

- Net interest income grew modestly, while fee income declined
substantially due to the market disruption. Strong momentum in
fiduciary and asset management fees and commissions due to the A.G.
Edwards acquisition and solid organic growth.

- Provision expense increased largely reflecting heightened portfolio
risks relating to recent significant deterioration in the housing
market as well as loan growth.

- Average loans up 9 percent with strength in commercial lending and auto
lending. Average deposits grew 8 percent particularly in money market
accounts and certificates of deposit. Strong momentum continued in net
new checking accounts, which increased 935,000 in 2007, including
100,000 generated in the former World Savings branch network.

- Tier 1 and total capital ratios increased from the third quarter of
2007 following the issuance of $2.3 billion of preferred stock and
$838 million of trust preferred.

- Income tax benefit of $285 million principally reflects a reduction in
the full year tax rate given a lower than expected level of earnings.

- Customer loyalty scores maintain near record 53%; organic customer
acquisition grew 15% annualized.

Earnings Highlights
Three Months Ended
December 31, September 30, December 31,
2007 2007 2006
(In millions, except
per share data) Amount EPS Amount EPS Amount EPS

Earnings

Net income (GAAP) $51 0.03 1,618 0.85 2,301 1.20
Net merger-related
expenses
Net merger-related and
restructuring expenses 109 0.05 21 0.01 29 0.01
Earnings excluding
merger-related and
restructuring expenses $160 0.08 1,639 0.86 2,330 1.21
Discontinued operations,
net of income taxes - - - - (46)(0.02)
Earnings excluding
merger-related and
restructuring expenses,
and discontinued
operations $160 0.08 1,639 0.86 2,284 1.19

Financial ratios

Return on average common
stockholders' equity 0.28% 9.19 13.09
Net interest margin (a) 2.88 2.92 3.09
Fee and other income as
% of total revenue (a) 35.09 37.90 46.51
Overhead efficiency
ratio (a) 80.36% 61.31 57.53

Capital adequacy (b)
Tier 1 capital ratio 7.2% 7.1 7.4
Total capital ratio 11.5 10.8 11.3
Leverage ratio 6.1% 6.1 6.0

Asset quality

Allowance for loan
losses as % of
nonaccrual and
restructured loans 96% 135 272
Allowance for loan
losses as % of loans,
net 0.98 0.78 0.80
Allowance for credit
losses as % of loans,
net (c) 1.02 0.82 0.84
Net charge-offs as %
of average loans, net 0.41 0.19 0.14
Nonperforming assets as
% of loans, net,
foreclosed properties
and loans held for sale 1.08% 0.63 0.32

(a) Tax-equivalent.
(b) The fourth quarter of 2007 is based on estimates.
(c) The allowance for credit losses is the sum of the allowance for loan
losses and the reserve for unfunded lending commitments.

Wachovia Corp. (NYSE: WB) today reported net income of $51 million, or 3
cents per share, in the fourth quarter of 2007 compared with $2.30 billion, or
$1.20 per share, in the fourth quarter of 2006.
Excluding after-tax net merger-related expenses of 5 cents per share in
the fourth quarter of 2007 and 1 cent per share in the fourth quarter of 2006,
earnings were $160 million, or 8 cents per share, in the fourth quarter of
2007 compared with $2.33 billion, or $1.21 per share, in the fourth quarter of
2006.
Full year 2007 net income was $6.31 billion, down 19 percent from $7.79
billion in 2006, and earnings per share were down 30 percent from 2006 to
$3.26. Excluding after-tax net merger-related expenses of 8 cents in 2007 and
7 cents in 2006, earnings in 2007 were $6.47 billion, or $3.34 per share,
compared with $7.91 billion, or $4.70 per share, in 2006.
"The continued turmoil in the capital markets and the dramatic change in
the credit environment diminished our fourth quarter results substantially,"
said Ken Thompson, Wachovia chairman and chief executive officer. "We took
active and prudent steps in the second half of the year to deal with the
market disruption and credit deterioration, and we believe this allows us to
move forward from a position of strength despite the uncertain economic
environment. For the full year, we earned $6.3 billion, paid $4.6 billion in
dividends, and maintained a well-capitalized balance sheet even as we had $3.1
billion in net market-related valuation losses and increased our allowance for
credit losses by $1.2 billion. Our management team and dedicated employees are
focused intently on the strategic priorities that prepared us well for this
more difficult economic environment: controlling expenses, managing risk
appropriately, creating revenue synergies between our businesses, and
continuing to provide industry-leading customer service. We're excited about
the future with our new partners from A.G. Edwards and with our newest banking
markets in some of the nation's fastest growing and affluent regions."
Results in 2007 included the impact of the acquisition of A.G. Edwards,
Inc., a retail brokerage firm headquartered in St. Louis, Missouri. This
transaction was consummated on October 1, 2007, and the retail brokerage
business was consolidated into Wachovia Securities LLC on January 1, 2008.
Integration activity will continue through 2009.

Wachovia Corporation
Three Months Ended
December 31, September 30, December 31,
(In millions) 2007 2007 2006
Net interest income
(Tax-equivalent) $4,674 4,584 4,612
Fee and other income 2,526 2,797 4,011
Total revenue (Tax-equivalent) 7,200 7,381 8,623
Provision for credit losses 1,497 408 206
Noninterest expense 5,786 4,525 4,962
Income (loss) from continuing
operations before income taxes
(benefits)(Tax-equivalent) (190) 2,259 3,330
Income taxes (benefits)
(Tax-equivalent) (241) 641 1,075
Net income 51 1,618 2,301
Average loans, net 449,805 429,801 412,561
Average core deposits $390,043 379,009 362,427

In the fourth quarter of 2007 compared with the fourth quarter of 2006,
Wachovia: -- Generated revenue of $7.2 billion on higher loan and deposit
balances
driven primarily by organic growth, while fee and other income declined
due to net market disruption-related valuation losses of $1.7 billion
and significantly reduced fee income related to the disruption in the
capital markets.
-- Increased net interest income modestly, reflecting higher average
commercial loans, up 22 percent, and average consumer loans, up
1 percent, as well as solid deposit growth.
* Commercial loan growth was led by middle-market commercial, large
corporate and international lending, while consumer loan growth,
which benefited from lower mortgage prepayments, was led by
traditional mortgage lending and auto loans.
* Average core deposits rose 8 percent and average low-cost core
deposits were up 5 percent.
* Growth in lower spread loans and other earning assets, a shift in
deposit mix and the effects of the inverted yield curve resulted in
21 basis points of margin compression, although the margin decline
slowed to 4 basis points from the third quarter of 2007.
-- Generated growth in fee and other income in key relationship management
areas, with strength in service charges, up 11 percent, and higher
commissions, up 53 percent, primarily related to the addition of A.G.
Edwards. Asset management fees reached a new high, reflecting continued
growth in retail brokerage managed account fees, trust and investment
fees, and the addition of A.G. Edwards. Trading, securities losses and
other income reflected the net valuation losses related to the market
disruption.
-- Recorded a 17 percent increase in noninterest expense largely
reflecting the acquisition impact.
-- Recorded a provision for credit losses of $1.5 billion, which exceeded
net charge-offs by $1.0 billion. The provision largely reflected the
recent significant deterioration in the residential housing market and
the related portions of the commercial real estate portfolio, including
higher expected loss factors for the consumer real estate and auto loan
portfolios, and for the commercial portfolios following an extensive
review of a large portion of the real estate financial services
portfolio in light of this deterioration. Net charge-offs were $461
million, or an annualized 0.41 percent of average net loans. Total
nonperforming assets including loans held for sale were $5.2 billion,
or 1.08 percent of loans, foreclosed properties and loans held for
sale, largely reflecting increases in consumer due to the effects of
the weakened housing industry.

Lines of Business
The following discussion covers the results for Wachovia's four core
business segments and is on a segment earnings basis, which excludes net
merger-related and restructuring expenses, other intangible amortization and
discontinued operations. Segment earnings are the basis on which Wachovia
manages and allocates capital to its business segments.
Pages 14 and 15 include a reconciliation of segment results to Wachovia's
consolidated results of operations in accordance with GAAP.

General Bank Highlights
Three Months Ended
December 31, September 30, December 31,
(In millions) 2007 2007 2006
Net interest income
(Tax-equivalent) $3,420 3,483 3,468
Fee and other income 963 969 956
Total revenue (Tax-equivalent) 4,428 4,497 4,461
Provision for credit losses 329 214 148
Noninterest expense 2,148 2,013 1,934
Segment earnings $1,239 1,441 1,510
Cash overhead efficiency ratio
(Tax-equivalent) 48.52% 44.77 43.36
Average loans, net $305,750 297,142 289,474
Average core deposits 296,560 290,354 280,069
Economic capital, average $11,721 11,554 11,147

General Bank
The General Bank includes retail, small business and commercial customers.
The fourth quarter of 2007 compared with the fourth quarter of 2006 included:
-- Earnings of $1.2 billion, down $271 million, driven by a small decrease
in revenue, a higher provision for credit losses and higher noninterest
expense.
-- A continued shift in the business mix reflecting customer preferences
for fixed rate instead of variable rate loans and certificates of
deposit over demand deposits.
-- Average loan growth of 6 percent, reflecting double digit growth in
wholesale businesses and small business, and 4 percent growth in
consumer loans.
-- 6 percent deposit growth led by consumer certificates of deposit, up
$15.2 billion, and money market deposits, up $3.0 billion from year-end
2006. Net new retail checking accounts increased by 90,000 in the
fourth quarter of 2007 compared with an increase of 87,000 in the
fourth quarter of 2006. For the full year, net new retail checking
accounts increased 935,000 in 2007 compared with an increase of 554,000
in 2006; this increase included more than 100,000 generated in the
former World Savings branch network.
-- Modest growth in fee and other income, with double digit growth in
service charges and interchange income offsetting lower mortgage
banking fee income and losses of $30 million on the sale of student
loans.
-- Noninterest expense up 11 percent, with expenses up across the board as
organizational realignment drove salaries and severance costs higher.
De novo branch activity continued, with 109 branches added and 128
consolidated in full year 2007. The increased investment drove the
General Bank's overhead efficiency ratio up 516 basis points to 48.52
percent.
-- A $181 million increase in the provision for credit losses largely
reflecting significant deterioration in consumer real estate, as well
as losses in auto, partially offset by a decline in commercial real
estate losses.

Wealth Management Highlights
Three Months Ended
December 31, September 30, December 31,
(In millions) 2007 2007 2006
Net interest income
(Tax-equivalent) $184 186 180
Fee and other income 215 184 200
Total revenue (Tax-equivalent) 402 374 384
Provision for credit losses 7 6 -
Noninterest expense 260 253 253
Segment earnings $85 74 84
Cash overhead efficiency ratio
(Tax-equivalent) 64.87% 67.39 65.57
Average loans, net $21,831 21,600 19,840
Average core deposits 16,772 16,943 17,255
Economic capital, average $655 652 635

Wealth Management
Wealth Management includes private banking, personal trust, investment
advisory services, charitable services, financial planning and insurance
brokerage. The fourth quarter of 2007 compared with the fourth quarter of 2006
included: -- Modest earnings growth to $85 million on 5 percent revenue
growth,
offset by 3 percent growth in expense and higher provision for credit
losses.
-- Strong fiduciary and asset management fees related to a pricing
initiative implemented in the third quarter and other growth, all of
which contributed to 8 percent growth in fee and other income.
Insurance commissions declined largely due to nonstrategic insurance
account dispositions.
-- 2 percent growth in net interest income on 10 percent average loan
growth, which offset spread compression.
-- An increase in expense on modest growth in salaries and benefits
including higher non-merger severance costs.

Corporate and Investment Bank Highlights
Three Months Ended
December 31, September 30, December 31,
(In millions) 2007 2007 2006
Net interest income
(Tax-equivalent) $988 839 776
Fee and other income (789) 21 1,363
Total revenue (Tax-equivalent) 162 822 2,102
Provision for credit losses 112 1 3
Noninterest expense 991 654 1,044
Segment earnings (loss) $(596) 105 670
Cash overhead efficiency ratio
(Tax-equivalent) 609.60% 79.69 49.63
Average loans, net $91,646 82,993 72,699
Average core deposits 36,131 37,066 32,466
Economic capital, average $11,326 9,881 8,363

Corporate and Investment Bank
The Corporate and Investment Bank includes corporate lending, investment
banking, and treasury and international trade finance. Fourth quarter 2007
results compared with the fourth quarter of 2006 included: -- A segment
loss of $596 million driven by $1.6 billion in net valuation
losses reflecting continued disruption in the capital markets and
reduced origination volume in most market-related businesses.
-- Market valuation losses, net of applicable hedges, of:
* $1.0 billion in subprime residential asset-backed collateralized
debt obligations and other structured products, compared with
$350 million in the prior quarter;
* $600 million in commercial mortgage structured products, compared
with $488 million in the prior quarter;
* $123 million in consumer mortgage structured products, compared with
$82 million in the prior quarter;
* $93 million gain in leveraged finance net of fees, compared with a
net $272 million in losses in the prior quarter; and
* $59 million net gain in non-subprime collateralized debt
obligations and other structured products, compared with
$109 million net loss in the prior quarter.
-- A 27 percent increase in net interest income, which reflected 26
percent growth in average loans particularly in real estate products in
growth markets and international lending in emerging markets, as well
as a shift from originate, warehouse and sell to originate and hold
assets on the balance sheet.
-- Lower principal investing compared with strong results in the prior
year quarter and particularly from a very strong third quarter of 2007.
-- Lower noninterest expense primarily related to lower incentive
compensation.
-- Provision of $112 million largely reflecting residential-related
commercial real estate losses.

Capital Management Highlights
Three Months Ended
December 31, September 30, December 31,
(In millions) 2007 2007 2006
Net interest income
(Tax-equivalent) $323 271 258
Fee and other income 2,211 1,444 1,370
Total revenue (Tax-equivalent) 2,523 1,707 1,620
Provision for credit losses - - -
Noninterest expense 1,972 1,273 1,232
Segment earnings $350 275 247
Cash overhead efficiency ratio
(Tax-equivalent) 78.14% 74.62 75.99
Average loans, net $2,295 2,142 1,419
Average core deposits 38,019 31,489 30,100
Economic capital, average $2,392 1,560 1,507

Capital Management
Capital Management includes retail brokerage services and asset
management. The fourth quarter of 2007 compared with the fourth quarter of
2006 included: -- Earnings of $350 million on 56 percent revenue growth,
which reflected
strength in retail brokerage managed account fees as well as the
acquisitions of A.G. Edwards on October 1, 2007, and European Credit
Management Ltd. (ECM) on January 31, 2007. Growth was partially offset
by an additional $17 million valuation loss related to certain asset-
backed commercial paper investments purchased in the third quarter of
2007 from Evergreen money market funds.
-- Managed assets growth of 52 percent from year-end 2006 to $203.5
billion at year-end 2007, including $44.0 billion from A.G. Edwards.
-- 60 percent growth in noninterest expense largely due to the effect of
the A.G. Edwards and the ECM acquisitions, as well as higher
commissions and litigation expense.

Total assets under management of $274.7 billion at December 31, 2007,
decreased 1 percent from December 31, 2006, as the addition of $29.9 billion
from acquisitions, net money market fund inflows of $9.3 billion and
approximately $4.5 billion in market appreciation were offset by the $34.5
billion change in investment discretion of assets under management now solely
managed by Wealth and other net outflows of $13.3 billion primarily related to
the loss of one institutional client with minimal revenue impact. Total
brokerage client assets grew 54 percent from year-end 2006 to $1.2 trillion,
including $371.1 billion from A.G. Edwards.
***
Wachovia Corporation (NYSE: WB) is one of the nation's largest diversified
financial services companies, with assets of $782.9 billion and market
capitalization of $75.3 billion at December 31, 2007. Wachovia provides a
broad range of retail banking and brokerage, asset and wealth management, and
corporate and investment banking products and services to customers through
3,400 retail financial centers in 21 states from Connecticut to Florida and
west to Texas and California, and nationwide retail brokerage, mortgage
lending and auto finance businesses. Globally, clients are served in selected
corporate and institutional sectors and through more than 40 international
offices. Our retail brokerage operations under the Wachovia Securities brand
name manage more than $1.2 trillion in client assets through 17,900 registered
representatives in 1,500 offices nationwide. Online banking is available at
wachovia.com; online brokerage products and services at wachoviasec.com; and
investment products and services at evergreeninvestments.com.
Forward-Looking Statements
This news release contains various forward-looking statements. A
discussion of various factors that could cause Wachovia Corporation's actual
results to differ materially from those expressed in such forward-looking
statements is included in Wachovia's filings with the Securities and Exchange
Commission, including its Current Report on Form 8-K dated January 22, 2008.
Explanation of Wachovia's Use of Certain Non-GAAP Financial Measures
In addition to results presented in accordance with GAAP, this news
release includes certain non-GAAP financial measures, including those
presented on page 1 and on page 11 under the captions "Earnings Excluding
Merger-Related and Restructuring Expenses, and Discontinued Operations" and
"Earnings Excluding Merger-Related and Restructuring Expenses, Other
Intangible Amortization and Discontinued Operations", and which are reconciled
to GAAP financial measures on pages 23 and 24. In addition, in this news
release certain designated net interest income amounts are presented on a tax-
equivalent basis, including the calculation of the overhead efficiency ratio.
Wachovia believes these non-GAAP financial measures provide information
useful to investors in understanding the underlying operational performance of
the company, its business and performance trends and facilitates comparisons
with the performance of others in the financial services industry.
Specifically, Wachovia believes the exclusion of merger-related and
restructuring expenses, discontinued operations and the cumulative effect of a
change in accounting principle permits evaluation and a comparison of results
for on-going business operations, and it is on this basis that Wachovia's
management internally assesses the company's performance. Those non-operating
items are excluded from Wachovia's segment measures used internally to
evaluate segment performance in accordance with GAAP because management does
not consider them particularly relevant or useful in evaluating the operating
performance of our business segments. In addition, because of the significant
amount of deposit base intangible amortization, Wachovia believes the
exclusion of this expense provides investors with consistent and meaningful
comparisons to other financial services firms. Wachovia's management makes
recommendations to its board of directors about dividend payments based on
reported earnings excluding merger-related and restructuring expenses, other
intangible amortization, discontinued operations and the cumulative effect of
a change in accounting principle, and has communicated certain dividend payout
ratio goals to investors on this basis. Management believes this payout ratio
is useful to investors because it provides investors with a better
understanding of and permits investors to monitor Wachovia's dividend payout
policy. Wachovia also believes the presentation of net interest income on a
tax-equivalent basis ensures comparability of net interest income arising from
both taxable and tax-exempt sources and is consistent with industry standards.
Wachovia operates one of the largest retail brokerage businesses in our
industry, and we have presented an overhead efficiency ratio excluding these
brokerage services, which management believes is useful to investors in
comparing the performance of our banking business with other banking
companies.
Although Wachovia believes the above non-GAAP financial measures enhance
investors' understanding of its business and performance, these non-GAAP
financial measures should not be considered an alternative to GAAP basis
financial measures.
Earnings Conference Call and Supplemental Materials
Wachovia CEO Ken Thompson and CFO Tom Wurtz will review Wachovia's fourth
quarter 2007 results and present an outlook for 2008 in a conference call and
audio webcast beginning at 11 a.m. Eastern Standard Time today. This review
may include a discussion of certain non-GAAP financial measures. Supplemental
materials relating to fourth quarter results, which also include a
reconciliation of any non-GAAP measures to Wachovia's reported financials, are
available on the Internet at Wachovia.com/investor, and investors are
encouraged to access these materials in advance of the conference call.
Webcast Instructions: To gain access to the webcast, which will be
"listen-only," go to Wachovia.com/investor and click on the link "Wachovia
Fourth Quarter Earnings Audio Webcast." In order to listen to the webcast, you
will need to download either Real Player or Media Player.
Teleconference Instructions: The telephone number for the conference call
is 888-357-9787 for U.S. callers or 706-679-7342 for international callers.
You will be asked to tell the answering coordinator your name and the name of
your firm. Mention the conference Access Code: WB Investor.
Replay: Tuesday, January 22, by 1:00 p.m. EST and continuing through 5
p.m. ESTFriday, March 21. Replay telephone number is 706-645-9291; access
code: 206047152.

ADD: /FIRST ADD -- CLTU006 -- Wachovia Corporation Earnings/
PAGE 9
WACHOVIA CORPORATION AND SUBSIDIARIES
FINANCIAL TABLES
TABLE OF CONTENTS PAGE

Financial Highlights - Five
Quarters Ended December 31, 2007 10

Other Financial Data - Five
Quarters Ended December 31, 2007 11

Consolidated Statements of Income
- Five Quarters Ended December 31, 2007 12

Consolidated Statements of Income
- Years Ended December 31, 2007 and 2006 13

Business Segments
- Three Months Ended December 31, 2007 and September 30, 2007 14

Business Segments - Three Months Ended December 31, 2006 15

Loans - On-Balance Sheet, and Managed and Servicing Portfolios
- Five Quarters Ended December 31, 2007 16

Allowance for Credit Losses
- Five Quarters Ended December 31, 2007 17

Nonperforming Assets
- Five Quarters Ended December 31, 2007 18

Consolidated Balance Sheets
- Five Quarters Ended December 31, 2007 19

Net Interest Income Summaries
- Five Quarters Ended December 31, 2007 20 - 21

Net Interest Income Summaries
- Years Ended December 31, 2007 and 2006 22

Reconciliation of Certain Non-GAAP Financial Measures
- Five Quarters Ended December 31, 2007 23 - 24

PAGE 10
WACHOVIA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

2007
(Dollars in millions, Fourth Third Second
except per share data) Quarter Quarter Quarter

EARNINGS SUMMARY
Net interest income (GAAP) $4,630 4,551 4,449
Tax-equivalent adjustment 44 33 38
Net interest income
(Tax-equivalent) 4,674 4,584 4,487
Fee and other income 2,526 2,797 4,240
Total revenue (Tax-equivalent) 7,200 7,381 8,727
Provision for credit losses 1,497 408 179
Other noninterest expense 5,488 4,397 4,755
Merger-related and
restructuring expenses 187 36 32
Other intangible amortization 111 92 103
Total noninterest expense 5,786 4,525 4,890
Minority interest in income
of consolidated subsidiaries 107 189 139
Income (loss) from continuing
operations before income taxes
(benefits) (Tax-equivalent) (190) 2,259 3,519
Income taxes (benefits) (285) 608 1,140
Tax-equivalent adjustment 44 33 38
Income from continuing operations 51 1,618 2,341
Discontinued operations,
net of income taxes - - -
Net income $51 1,618 2,341
Diluted earnings per common share $0.03 0.85 1.22
Return on average common
stockholders' equity 0.28% 9.19 13.54
Return on average assets 0.03 0.88 1.33
Overhead efficiency ratio 80.36% 61.31 56.02
Operating leverage $(1,441) (983) 189

ASSET QUALITY
Allowance for loan losses as
% of loans, net 0.98% 0.78 0.79
Allowance for loan losses as
% of nonperforming assets 88 120 164
Allowance for credit losses as
% of loans, net 1.02 0.82 0.83
Net charge-offs as
% of average loans, net 0.41 0.19 0.14
Nonperforming assets as % of
loans, net, foreclosed properties
and loans held for sale 1.08% 0.63 0.47

CAPITAL ADEQUACY (a)
Tier I capital ratio 7.2% 7.1 7.5
Total capital ratio 11.5 10.8 11.5
Leverage ratio 6.1% 6.1 6.2

OTHER DATA
Average diluted common shares
(In millions) 1,983 1,910 1,919
Actual common shares
(In millions) (b) 1,980 1,901 1,903
Dividends paid per common share $0.64 0.64 0.56
Dividend payout ratio on
common shares 2,133.33% 75.29 45.90
Book value per common share (b) $37.66 36.90 36.40
Common stock price 38.03 50.15 51.25
Market capitalization (b) $75,302 95,326 97,530
Common stock price to book value (b) 101% 136 141
FTE employees 121,890 109,724 110,493
Total financial centers/
brokerage offices 4,894 4,167 4,135
ATMs 5,139 5,123 5,099

(a) The fourth quarter of 2007 is based on estimates.
(b) Includes restricted stock for which the holder receives
dividends and has full voting rights.

PAGE 10
WACHOVIA CORPORATION AND SUBSIDIARIES
FINANCIAL HIGHLIGHTS
(Unaudited)

2007 2006
(Dollars in millions, First Fourth
except per share data) Quarter Quarter

EARNINGS SUMMARY
Net interest income (GAAP) $4,500 4,577
Tax-equivalent adjustment 37 35
Net interest income
(Tax-equivalent) 4,537 4,612
Fee and other income 3,734 4,011
Total revenue (Tax-equivalent) 8,271 8,623
Provision for credit losses 177 206
Other noninterest expense 4,493 4,772
Merger-related and
restructuring expenses 10 49
Other intangible amortization 118 141
Total noninterest expense 4,621 4,962
Minority interest in income
of consolidated subsidiaries 136 125
Income (loss) from continuing
operations before income taxes
(benefits) (Tax-equivalent) 3,337 3,330
Income taxes (benefits) 998 1,040
Tax-equivalent adjustment 37 35
Income from continuing operations 2,302 2,255
Discontinued operations,
net of income taxes - 46
Net income $2,302 2,301

Diluted earnings per common share $1.20 1.20
Return on average common
stockholders' equity 13.47% 13.09
Return on average assets 1.35 1.31
Overhead efficiency ratio 55.88% 57.53
Operating leverage $(13) 665

ASSET QUALITY
Allowance for loan losses as
% of loans, net 0.80% 0.80
Allowance for loan losses as
% of nonperforming assets 194 246
Allowance for credit losses as
% of loans, net 0.84 0.84
Net charge-offs as
% of average loans, net 0.15 0.14
Nonperforming assets as % of
loans, net, foreclosed properties
and loans held for sale 0.40% 0.32

CAPITAL ADEQUACY (a)
Tier I capital ratio 7.4% 7.4
Total capital ratio 11.4 11.3
Leverage ratio 6.1% 6.0

OTHER DATA
Average diluted common shares
(In millions) 1,925 1,922
Actual common shares
(In millions)(b) 1,913 1,904
Dividends paid per common share $0.56 0.56
Dividend payout ratio on
common shares 46.67% 46.67
Book value per common share (b) $36.47 36.61
Common stock price 55.05 56.95
Market capitalization (b) $105,330 108,443
Common stock price to book value (b) 151% 156
FTE employees 110,369 109,460
Total financial centers/
brokerage offices 4,167 4,126
ATMs 5,146 5,212

(a) The fourth quarter of 2007 is based on estimates.
(b) Includes restricted stock for which the holder receives
dividends and has full voting rights.

PAGE 11
WACHOVIA CORPORATION AND SUBSIDIARIES
OTHER FINANCIAL DATA
(Unaudited)

2007
Fourth Third Second
(In millions) Quarter Quarter Quarter
EARNINGS EXCLUDING
MERGER-RELATED AND
RESTRUCTURING EXPENSES,
AND DISCONTINUED
OPERATIONS (a) (b)
Return on average common
stockholders' equity 0.86% 9.31 13.66
Return on average assets 0.08 0.89 1.34
Overhead efficiency ratio 77.76 60.83 55.65
Overhead efficiency ratio
excluding brokerage 77.39% 57.78 51.73
Operating leverage $(1,290) (979) 210

EARNINGS EXCLUDING
MERGER-RELATED AND
RESTRUCTURING
EXPENSES, OTHER
INTANGIBLE AMORTIZATION
AND DISCONTINUED
OPERATIONS (a) (b) (c)
Dividend payout ratio on
common shares 581.82% 71.91 44.09
Return on average tangible
common stockholders' equity 3.09 22.70 33.57
Return on average tangible assets 0.12 0.98 1.47
Overhead efficiency ratio 76.21 59.59 54.47
Overhead efficiency ratio
excluding brokerage 75.15 % 56.25 50.30
Operating leverage $(1,269) (991) 197

OTHER FINANCIAL DATA
Net interest margin 2.88% 2.92 2.94
Fee and other income
as % of total revenue 35.09 37.90 48.58
Effective income tax rate (d) 122.05 27.33 32.78
Effective tax rate
(Tax-equivalent) (d) (e) 127.17% 28.38 33.51

AVERAGE BALANCE SHEET DATA
Commercial loans, net $188,164 174,672 165,512
Consumer loans, net 261,641 255,129 255,745
Loans, net 449,805 429,801 421,257
Earning assets 650,140 628,773 605,978
Total assets 763,487 729,004 704,773
Core deposits 390,043 379,009 378,496
Total deposits 437,566 416,107 408,418
Interest-bearing liabilities 599,130 574,399 547,669
Stockholders' equity $73,986 69,857 69,317

PERIOD-END BALANCE SHEET DATA
Commercial loans, net $198,566 189,545 175,369
Consumer loans, net 263,388 259,661 253,751
Loans, net 461,954 449,206 429,120
Goodwill and other intangible
assets
Goodwill 43,122 38,848 38,766
Deposit base 619 670 727
Customer relationships 1,410 620 651
Tradename 90 90 90
Total assets 782,896 754,168 715,428
Core deposits 397,405 377,865 378,188
Total deposits 449,129 421,937 410,030
Stockholders' equity $76,872 70,140 69,266

(a) These financial measures are calculated by excluding from GAAP
net income presented on page 10, $109 million, $21 million, $20
million, $6 million and $29 million in the fourth, third, second
and first quarters of 2007, and in the fourth quarter of 2006,
respectively, of after-tax net merger-related and restructuring
expenses, and $46 million after tax in the fourth quarter of
2006 related to discontinued operations.
(b) See page 10 for the most directly comparable GAAP financial
measure and pages 23 and 24 for a more detailed reconciliation.
(c) These financial measures are calculated by excluding from GAAP
net income presented on page 10, $64 million, $60 million, $66
million, $76 million and $90 million in the fourth, third,
second and first quarters of 2007, and in the fourth quarter of
2006, respectively, of deposit base and other intangible
amortization.
(d) The fourth quarter of 2006 includes taxes on discontinued
operations.
(e) The tax-equivalent tax rate applies to fully tax-equivalized
revenues.

PAGE 11
WACHOVIA CORPORATION AND SUBSIDIARIES
OTHER FINANCIAL DATA
(Unaudited)

2007 2006
First Fourth
(In millions) Quarter Quarter
EARNINGS EXCLUDING
MERGER-RELATED AND
RESTRUCTURING EXPENSES,
AND DISCONTINUED
OPERATIONS (a) (b)
Return on average common
stockholders' equity 13.50% 12.98
Return on average assets 1.35 1.30
Overhead efficiency ratio 55.75 56.97
Overhead efficiency ratio
excluding brokerage 52.31% 53.55
Operating leverage $(51) 675

EARNINGS EXCLUDING
MERGER-RELATED AND
RESTRUCTURING
EXPENSES, OTHER
INTANGIBLE AMORTIZATION
AND DISCONTINUED
OPERATIONS (a) (b) (c)
Dividend payout ratio on
common shares 45.16% 45.16
Return on average tangible common
stockholders' equity 33.27 31.58
Return on average tangible assets 1.49 1.43
Overhead efficiency ratio 54.33 55.33
Overhead efficiency ratio
excluding brokerage 50.59% 51.61
Operating leverage $(75) 725

OTHER FINANCIAL DATA
Net interest margin 3.04% 3.09
Fee and other income
as % of total revenue 45.15 46.51
Effective income tax rate (d) 30.22 31.74
Effective tax rate (Tax-
equivalent) (d) (e) 30.99% 32.46

AVERAGE BALANCE SHEET DATA
Commercial loans, net $157,288 154,306
Consumer loans, net 257,973 258,255
Loans, net 415,261 412,561
Earning assets 593,663 596,893
Total assets 691,029 698,687
Core deposits 369,270 362,427
Total deposits 399,106 395,380
Interest-bearing liabilities 535,778 536,958
Stockholders' equity $69,320 69,725

PERIOD-END BALANCE SHEET DATA
Commercial loans, net $167,039 162,098
Consumer loans, net 254,624 258,060
Loans, net 421,663 420,158
Goodwill and other intangible assets
Goodwill 38,838 38,379
Deposit base 796 883
Customer relationships 684 662
Tradename 90 90
Total assets 702,669 707,121
Core deposits 377,358 371,771
Total deposits 405,270 407,458
Stockholders' equity $69,786 69,716

(a) These financial measures are calculated by excluding from GAAP
net income presented on page 10, $109 million, $21 million, $20
million, $6 million and $29 million in the fourth, third,
second and first quarters of 2007, and in the fourth quarter of
2006, respectively, of after-tax net merger-related and
restructuring expenses, and $46 million after tax in the fourth
quarter of 2006 related to discontinued operations.
(b) See page 10 for the most directly comparable GAAP financial
measure and pages 23 and 24 for a more detailed reconciliation.
(c) These financial measures are calculated by excluding from GAAP
net income presented on page 10, $64 million, $60 million, $66
million, $76 million and $90 million in the fourth, third,
second and first quarters of 2007, and in the fourth quarter of
2006, respectively, of deposit base and other intangible
amortization.
(d) The fourth quarter of 2006 includes taxes on discontinued
operations.
(e) The tax-equivalent tax rate applies to fully tax-equivalized
revenues.

PAGE 12
WACHOVIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

2007
(In millions, Fourth Third Second
except per share data) Quarter Quarter Quarter
INTEREST INCOME
Interest and fees on loans $7,980 7,937 7,723
Interest and dividends on
securities 1,616 1,529 1,474
Trading account interest 557 566 506
Other interest income 757 799 647
Total interest income 10,910 10,831 10,350

INTEREST EXPENSE
Interest on deposits 3,433 3,334 3,180
Interest on short-term borrowings 673 801 706
Interest on long-term debt 2,174 2,145 2,015
Total interest expense 6,280 6,280 5,901
Net interest income 4,630 4,551 4,449
Provision for credit losses 1,497 408 179
Net interest income after
provision for credit losses 3,133 4,143 4,270

FEE AND OTHER INCOME
Service charges 716 689 667
Other banking fees 440 437 504
Commissions 970 600 649
Fiduciary and asset
management fees 1,436 1,029 1,015
Advisory, underwriting and
other investment banking fees 249 393 454
Trading account profits (losses) (742) (437) 195
Principal investing 41 372 298
Securities gains (losses) (320) (34) 23
Other income (264) (252) 435
Total fee and other income 2,526 2,797 4,240

NONINTEREST EXPENSE
Salaries and employee benefits 3,468 2,628 3,122
Occupancy 375 325 331
Equipment 334 283 309
Advertising 71 62 70
Communications and supplies 192 175 180
Professional and consulting fees 275 196 209
Other intangible amortization 111 92 103
Merger-related and restructuring
expenses 187 36 32
Sundry expense 773 728 534
Total noninterest expense 5,786 4,525 4,890
Minority interest in income
of consolidated subsidiaries 107 189 139
Income (loss) from continuing
operations before income taxes
(benefits) (234) 2,226 3,481
Income taxes (benefits) (285) 608 1,140
Income from continuing operations 51 1,618 2,341
Discontinued operations,
net of income taxes - - -
Net income $51 1,618 2,341

PER COMMON SHARE DATA
Basic earnings
Income from continuing operations $0.03 0.86 1.24
Net income 0.03 0.86 1.24
Diluted earnings
Income from continuing operations 0.03 0.85 1.22
Net income 0.03 0.85 1.22
Cash dividends $0.64 0.64 0.56

AVERAGE COMMON SHARES
Basic 1,959 1,885 1,891
Diluted 1,983 1,910 1,919

PAGE 12
WACHOVIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

2007 2006
(In millions, First Fourth
except per share data) Quarter Quarter
INTEREST INCOME
Interest and fees on loans $7,618 7,736
Interest and dividends on securities 1,478 1,491
Trading account interest 433 462
Other interest income 611 681
Total interest income 10,140 10,370

INTEREST EXPENSE
Interest on deposits 3,014 3,067
Interest on short-term borrowings 669 781
Interest on long-term debt 1,957 1,945
Total interest expense 5,640 5,793
Net interest income 4,500 4,577
Provision for credit losses 177 206
Net interest income after
provision for credit losses 4,323 4,371

FEE AND OTHER INCOME
Service charges 614 646
Other banking fees 416 452
Commissions 659 633
Fiduciary and asset management fees 953 887
Advisory, underwriting and other
investment banking fees 407 433
Trading account profits (losses) 128 29
Principal investing 48 142
Securities gains (losses) 53 47
Other income 456 742
Total fee and other income 3,734 4,011

NONINTEREST EXPENSE
Salaries and employee benefits 2,972 3,023
Occupancy 312 323
Equipment 307 314
Advertising 61 47
Communications and supplies 173 166
Professional and consulting fees 177 239
Other intangible amortization 118 141
Merger-related and restructuring
expenses 10 49
Sundry expense 491 660
Total noninterest expense 4,621 4,962
Minority interest in income
of consolidated subsidiaries 136 125
Income (loss) from continuing operations
before income taxes (benefits) 3,300 3,295
Income taxes (benefits) 998 1,040
Income from continuing operations 2,302 2,255
Discontinued operations,
net of income taxes - 46
Net income $2,302 2,301

PER COMMON SHARE DATA
Basic earnings
Income from continuing operations $1.22 1.20
Net income 1.22 1.22
Diluted earnings
Income from continuing operations 1.20 1.18
Net income 1.20 1.20
Cash dividends $0.56 0.56

AVERAGE COMMON SHARES
Basic 1,894 1,889
Diluted 1,925 1,922

PAGE 13
WACHOVIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

Years Ended
December 31,
(In millions,
except per share data) 2007 2006
INTEREST INCOME
Interest and fees on loans $31,258 21,976
Interest and dividends on securities 6,097 6,433
Trading account interest 2,062 1,575
Other interest income 2,814 2,281
Total interest income 42,231 32,265

INTEREST EXPENSE
Interest on deposits 12,961 9,119
Interest on short-term borrowings 2,849 3,114
Interest on long-term debt 8,291 4,783
Total interest expense 24,101 17,016
Net interest income 18,130 15,249
Provision for credit losses 2,261 434
Net interest income after
provision for credit losses 15,869 14,815

FEE AND OTHER INCOME
Service charges 2,686 2,480
Other banking fees 1,797 1,756
Commissions 2,878 2,406
Fiduciary and asset management fees 4,433 3,368
Advisory, underwriting and
other investment banking fees 1,503 1,345
Trading account profits (losses) (856) 535
Principal investing 759 525
Securities gains (losses) (278) 118
Other income 375 2,132
Total fee and other income 13,297 14,665

NONINTEREST EXPENSE
Salaries and employee benefits 12,190 10,903
Occupancy 1,343 1,173
Equipment 1,233 1,184
Advertising 264 204
Communications and supplies 720 653
Professional and consulting fees 857 790
Other intangible amortization 424 423
Merger-related and restructuring
expenses 265 179
Sundry expense 2,526 2,087
Total noninterest expense 19,822 17,596
Minority interest in income
of consolidated subsidiaries 571 414
Income before income taxes 8,773 11,470
Income taxes 2,461 3,725
Income from continuing operations 6,312 7,745
Discontinued operations,
net of income taxes - 46
Net income $6,312 7,791

PER COMMON SHARE DATA
Basic earnings
Income from continuing operations $3.31 4.70
Net income 3.31 4.72
Diluted earnings
Income from continuing operations 3.26 4.61
Net income 3.26 4.63
Cash dividends $2.40 2.14

AVERAGE COMMON SHARES
Basic 1,907 1,651
Diluted 1,934 1,681

PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended December 31, 2007
Corporate
Wealth and
General Manage- Investment
(In millions) Bank ment Bank
CONSOLIDATED
Net interest income (a) $3,420 184 988
Fee and other income 963 215 (789)
Intersegment revenue 45 3 (37)
Total revenue (a) 4,428 402 162
Provision for credit losses 329 7 112
Noninterest expense 2,148 260 991
Minority interest - - -
Income taxes (benefits) 701 50 (364)
Tax-equivalent adjustment 11 - 19
Net income (loss) $1,239 85 (596)

PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)

Three Months Ended December 31, 2007

Capital
Manage-
(In millions) ment Parent
CONSOLIDATED
Net interest income (a) $323 (241)
Fee and other income 2,211 (74)
Intersegment revenue (11) -
Total revenue (a) 2,523 (315)
Provision for credit losses - 1,049
Noninterest expense 1,972 228
Minority interest - 118
Income taxes (benefits) 200 (805)
Tax-equivalent adjustment 1 13
Net income (loss) $350 (918)

PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended December 31, 2007

Net Merger-
Related
and
Restructuring
(In millions) Expenses (b) Total
CONSOLIDATED
Net interest income (a) $(44) 4,630
Fee and other income - 2,526
Intersegment revenue - -
Total revenue (a) (44) 7,156
Provision for credit losses - 1,497
Noninterest expense 187 5,786
Minority interest (11) 107
Income taxes (benefits) (67) (285)
Tax-equivalent adjustment (44) -
Net income (loss) $(109) 51

PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended September 30, 2007
Corporate
Wealth and
General Manage- Investment
(In millions) Bank ment Bank
CONSOLIDATED
Net interest income (a) $3,483 186 839
Fee and other income 969 184 21
Intersegment revenue 45 4 (38)
Total revenue (a) 4,497 374 822
Provision for credit losses 214 6 1
Noninterest expense 2,013 253 654
Minority interest - - -
Income taxes (benefits) 818 41 53
Tax-equivalent adjustment 11 - 9
Net income (loss) $1,441 74 105

PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)

Three Months Ended September 30, 2007
Capital
Manage-
(In millions) ment Parent
CONSOLIDATED
Net interest income (a) $271 (195)
Fee and other income 1,444 179
Intersegment revenue (8) (3)
Total revenue (a) 1,707 (19)
Provision for credit losses - 187
Noninterest expense 1,273 296
Minority interest - 189
Income taxes (benefits) 159 (448)
Tax-equivalent adjustment - 13
Net income (loss) $275 (256)

PAGE 14
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)

Three Months Ended September 30, 2007

Net Merger-
Related
and
Restructuring
(In millions) Expenses (b) Total
CONSOLIDATED
Net interest income (a) $(33) 4,551
Fee and other income - 2,797
Intersegment revenue - -
Total revenue (a) (33) 7,348
Provision for credit losses - 408
Noninterest expense 36 4,525
Minority interest - 189
Income taxes (benefits) (15) 608
Tax-equivalent adjustment (33) -
Net income (loss) $(21) 1,618

PAGE 15
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)

Three Months Ended December 31, 2006
Corporate
Wealth and
General Manage- Investment
(In millions) Bank ment Bank
CONSOLIDATED
Net interest income (a) $3,468 180 776
Fee and other income 956 200 1,363
Intersegment revenue 37 4 (37)
Total revenue (a) 4,461 384 2,102
Provision for credit losses 148 - 3
Noninterest expense 1,934 253 1,044
Minority interest - - -
Income taxes (benefits) 859 47 374
Tax-equivalent adjustment 10 - 11
Income from continuing operations 1,510 84 670
Discontinued operations,
net of income taxes - - -
Net income (loss) $1,510 84 670

PAGE 15
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended December 31, 2006
Capital
Manage-
(In millions) ment Parent
CONSOLIDATED
Net interest income (a) $258 (70)
Fee and other income 1,370 122
Intersegment revenue (8) 4
Total revenue (a) 1,620 56
Provision for credit losses - 55
Noninterest expense 1,232 450
Minority interest - 124
Income taxes (benefits) 141 (360)
Tax-equivalent adjustment - 14
Income from continuing operations 247 (227)
Discontinued operations,
net of income taxes - 46
Net income (loss) $247 (181)

PAGE 15
WACHOVIA CORPORATION AND SUBSIDIARIES
BUSINESS SEGMENTS
(Unaudited)
Three Months Ended December 31, 2006

Net Merger-
Related
and
Restructuring
(In millions) Expenses (b) Total
CONSOLIDATED
Net interest income (a) $(35) 4,577
Fee and other income - 4,011
Intersegment revenue - -
Total revenue (a) (35) 8,588
Provision for credit losses - 206
Noninterest expense 49 4,962
Minority interest 1 125
Income taxes (benefits) (21) 1,040
Tax-equivalent adjustment (35) -
Income from continuing operations (29) 2,255
Discontinued operations,
net of income taxes - 46
Net income (loss) $(29) 2,301

(a) Tax-equivalent.
(b) The tax-equivalent amounts are eliminated herein in order
for "Total" amounts to agree with amounts appearing in the
Consolidated Statements of Income.

PAGE 16
WACHOVIA CORPORATION AND SUBSIDIARIES
LOANS - ON-BALANCE SHEET, AND
MANAGED AND SERVICING PORTFOLIOS
(Unaudited)
2007
Fourth Third Second
(In millions) Quarter Quarter Quarter
ON-BALANCE SHEET LOAN PORTFOLIO
COMMERCIAL
Commercial, financial and
agricultural $112,509 109,269 102,397
Real estate - construction and
other 18,543 18,167 17,449
Real estate - mortgage 23,846 21,514 20,448
Lease financing 23,913 23,966 24,083
Foreign 29,540 26,471 20,959
Total commercial 208,351 199,387 185,336

CONSUMER
Real estate secured 227,719 225,355 220,293
Student loans 8,149 7,742 6,757
Installment loans 25,635 24,763 25,017
Total consumer 261,503 257,860 252,067
Total loans 469,854 457,247 437,403
Unearned income (7,900) (8,041) (8,283)
Loans, net (On-balance
sheet) $461,954 449,206 429,120

MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio $208,351 199,387 185,336
Securitized loans -
off-balance sheet 131 142 170
Loans held for sale 9,414 13,905 11,573
Total commercial 217,896 213,434 197,079

CONSUMER
Real estate secured
On-balance sheet loan
portfolio 227,719 225,355 220,293
Securitized loans -
off-balance sheet 7,230 7,625 8,112
Securitized loans included
in securities 10,755 5,963 6,091
Loans held for sale 4,816 3,583 4,079
Total real estate
secured 250,520 242,526 238,575
Student
On-balance sheet loan portfolio 8,149 7,742 6,757
Securitized loans -
off-balance sheet 2,811 2,856 2,905
Securitized loans included
in securities 52 52 52
Loans held for sale - 1,968 2,046
Total student 11,012 12,618 11,760
Installment
On-balance sheet loan portfolio 25,635 24,763 25,017
Securitized loans -
off-balance sheet 2,263 2,572 3,105
Securitized loans included
in securities 47 55 116
Loans held for sale 2,542 1,975 35
Total installment 30,487 29,365 28,273
Total consumer 292,019 284,509 278,608
Total managed portfolio $509,915 497,943 475,687

SERVICING PORTFOLIO (b)
Commercial $353,464 337,721 298,374
Consumer $27,967 28,474 26,789

(a) The managed portfolio includes the on-balance sheet loan
portfolio, loans securitized for which the retained interests
are classified in securities on-balance sheet, loans held for
sale on-balance sheet and the off-balance sheet portfolio of
securitized loans sold, where we service the loans.
(b) The servicing portfolio consists of third party commercial and
consumer loans for which our sole function is that of servicing
the loans for the third parties.

PAGE 16
WACHOVIA CORPORATION AND SUBSIDIARIES
LOANS - ON-BALANCE SHEET, AND
MANAGED AND SERVICING PORTFOLIOS
(Unaudited)
2007 2006
First Fourth
(In millions) Quarter Quarter
ON-BALANCE SHEET LOAN PORTFOLIO
COMMERCIAL
Commercial, financial and
agricultural $99,687 96,285
Real estate - construction and
other 16,965 16,182
Real estate - mortgage 20,130 20,026
Lease financing 24,053 25,341
Foreign 16,240 13,464
Total commercial 177,075 171,298

CONSUMER
Real estate secured 220,682 225,826
Student loans 8,479 7,768
Installment loans 23,665 22,660
Total consumer 252,826 256,254
Total loans 429,901 427,552
Unearned income (8,238) (7,394)
Loans, net (On-balance
sheet) $421,663 420,158

MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio $177,075 171,298
Securitized loans -
off-balance sheet 181 194
Loans held for sale 10,467 8,866
Total commercial 187,723 180,358

CONSUMER
Real estate secured
On-balance sheet loan
portfolio 220,682 225,826
Securitized loans -
off-balance sheet 6,595 5,611
Securitized loans included
in securities 5,629 5,321
Loans held for sale 4,089 3,420
Total real estate
secured 236,995 240,178
Student
On-balance sheet loan portfolio 8,479 7,768
Securitized loans -
off-balance sheet 3,045 3,128
Securitized loans included
in securities 52 52
Loans held for sale - -
Total student 11,576 10,948
Installment
On-balance sheet loan
portfolio 23,665 22,660
Securitized loans -
off-balance sheet 2,851 3,276
Securitized loans included
in securities 126 137
Loans held for sale 476 282
Total installment 27,118 26,355
Total consumer 275,689 277,481
Total managed portfolio $463,412 457,839

SERVICING PORTFOLIO (b)
Commercial $271,038 250,652
Consumer $25,952 21,039

(a) The managed portfolio includes the on-balance sheet loan
portfolio, loans securitized for which the retained interests
are classified in securities on-balance sheet, loans held for
sale on-balance sheet and the off-balance sheet portfolio of
securitized loans sold, where we service the loans.
(b) The servicing portfolio consists of third party commercial and
consumer loans for which our sole function is that of servicing
the loans for the third parties.

PAGE 17
WACHOVIA CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
2007
Fourth Third Second
(In millions) Quarter Quarter Quarter
ALLOWANCE FOR CREDIT LOSSES (a)
Balance, beginning of period $3,691 3,552 3,533
Provision for credit losses 1,467 381 168
Provision for credit losses
relating to loans transferred to
loans held for sale or sold 6 3 4
Provision for credit losses
for unfunded lending commitments 24 24 7

LOAN LOSSES
Commercial, financial and
agricultural (67) (41) (39)
Commercial real estate -
construction and mortgage (117) (5) (4)
Total commercial (184) (46) (43)
Real estate secured (156) (59) (40)
Student loans (4) (5) (2)
Installment and other loans (b) (225) (168) (138)
Total consumer (385) (232) (180)
Total loan losses (569) (278) (223)

LOAN RECOVERIES
Commercial, financial and
agricultural 22 9 15
Commercial real estate -
construction and mortgage - 3 -
Total commercial 22 12 15
Real estate secured 9 12 11
Student loans 2 3 -
Installment and other loans (b) 75 45 47
Total consumer 86 60 58
Total loan recoveries 108 72 73
Net charge-offs (461) (206) (150)
Balance of acquired entities
at purchase date - - -
Allowance relating to loans
acquired, transferred to loans
held for sale or sold (10) (63) (10)
Balance, end of period $4,717 3,691 3,552
ALLOWANCE FOR LOAN LOSSES
Allowance for loan losses $4,507 3,505 3,390
Reserve for unfunded lending
commitments 210 186 162
Total allowance for
credit losses $4,717 3,691 3,552

ALLOWANCE FOR LOAN LOSSES
as % of loans, net 0.98% 0.78 0.79
as % of nonaccrual and
restructured loans (c) (d) 96 135 182
as % of nonperforming assets (c) 88 120 164

ALLOWANCE FOR CREDIT LOSSES
as % of loans, net 1.02% 0.82 0.83

NET CHARGE-OFFS AS % OF
AVERAGE LOANS, NET (e)
Commercial, financial and
agricultural 0.06% 0.10 0.07
Commercial real estate -
construction and mortgage 1.09 0.02 0.04
Total commercial 0.34 0.08 0.07
Real estate secured 0.26 0.08 0.05
Student loans 0.10 0.14 0.07
Installment and other loans (b) 2.35 1.99 1.47
Total consumer 0.46 0.27 0.19
Total as %
of average loans, net 0.41% 0.19 0.14

CONSUMER REAL ESTATE SECURED
NET CHARGE-OFFS
First lien (122) (32) (17)
Second lien (25) (15) (12)
Total consumer real estate
secured net charge-offs (147) (47) (29)

(a) The allowance for credit losses is the sum of the allowance
for loan losses and the reserve for unfunded lending
commitments.
(b) Principally auto loans.
(c) These ratios do not include nonperforming assets included in
loans held for sale.
(d) Restructured loans are not significant.
(e) Annualized.

PAGE 17
WACHOVIA CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
2007 2006
First Fourth
(In millions) Quarter Quarter
ALLOWANCE FOR CREDIT LOSSES (a)
Balance, beginning of period $3,514 3,163
Provision for credit losses 175 204
Provision for credit losses
relating to loans transferred to loans
held for sale or sold 1 7
Provision for credit losses
for unfunded lending commitments 1 (5)

LOAN LOSSES
Commercial, financial and agricultural (34) (32)
Commercial real estate -
construction and mortgage (6) (10)
Total commercial (40) (42)
Real estate secured (33) (29)
Student loans (3) (5)
Installment and other loans (b) (142) (135)
Total consumer (178) (169)
Total loan losses (218) (211)

LOAN RECOVERIES
Commercial, financial and
agricultural 9 27
Commercial real estate -
construction and mortgage 3 1
Total commercial 12 28
Real estate secured 6 7
Student loans 1 3
Installment and other loans (b) 44 33
Total consumer 51 43
Total loan recoveries 63 71
Net charge-offs (155) (140)
Balance of acquired entities
at purchase date - 303
Allowance relating to loans
acquired, transferred to loans
held for sale or sold (3) (18)
Balance, end of period $3,533 3,514

ALLOWANCE FOR LOAN LOSSES
Allowance for loan losses $3,378 3,360
Reserve for unfunded lending
commitments 155 154
Total allowance for
credit losses $3,533 3,514
ALLOWANCE FOR LOAN LOSSES
as % of loans, net 0.80% 0.80
as % of nonaccrual and
restructured loans (c) (d) 213 272
as % of nonperforming assets (c) 194 246

ALLOWANCE FOR CREDIT LOSSES
as % of loans, net 0.84% 0.84

NET CHARGE-OFFS AS % OF
AVERAGE LOANS, NET (e)
Commercial, financial and
agricultural 0.08% 0.02
Commercial real estate -
construction and mortgage 0.04 0.10
Total commercial 0.07 0.04
Real estate secured 0.05 0.04
Student loans 0.10 0.09
Installment and other loans (b) 1.67 1.79
Total consumer 0.20 0.19
Total as %
of average loans, net 0.15% 0.14

CONSUMER REAL ESTATE SECURED
NET CHARGE-OFFS
First lien (15) (15)
Second lien (12) (7)
Total consumer real estate secured
net charge-offs (27) (22)

(a) The allowance for credit losses is the sum of the allowance
for loan losses and the reserve for unfunded lending
commitments.
(b) Principally auto loans.
(c) These ratios do not include nonperforming assets included in
loans held for sale.
(d) Restructured loans are not significant.
(e) Annualized.

SOURCE Wachovia Corporation

Investor Relations, Alice Lehman, +1-704-374-4139, or Ellen Taylor,
+1-704-383-1381, or Corporate Media Relations, Mary Eshet, +1-704-383-7777, or
Christy Phillips, +1-704-383-8178, all of Wachovia Corporation / /FIRST ADD --
TABULAR MATERIAL -- TO FOLLOW