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.

ADD: /SECOND AND FINAL ADD -- CLTU006 -- Wachovia Corporation Earnings/
PAGE 18
WACHOVIA CORPORATION AND SUBSIDIARIES
NONPERFORMING ASSETS
(Unaudited)
2007
Fourth Third Second
(In millions) Quarter Quarter Quarter
NONPERFORMING ASSETS
Nonaccrual loans
Commercial
Commercial, financial and
agricultural $602 354 318
Commercial real estate -
construction and mortgage 1,059 289 161
Total commercial 1,661 643 479
Consumer
Real estate secured
First lien 2,948 1,865 1,293
Second lien 58 41 43
Installment and other loans (a) 42 45 42
Total consumer 3,048 1,951 1,378
Total nonaccrual loans 4,709 2,594 1,857
Foreclosed properties (b) 389 334 207
Total nonperforming
assets $5,098 2,928 2,064
as % of loans, net, and foreclosed
properties (c) 1.10% 0.65 0.48
Nonperforming loans included
in loans held for sale
Commercial $- - -
Consumer 62 59 42
Total nonperforming assets
included in loans held for sale 62 59 42
Nonperforming assets included
in loans and in loans held for
sale $5,160 2,987 2,106
as % of loans, net, foreclosed
properties and loans held
for sale (d) 1.08% 0.63 0.47

PAST DUE LOANS 90 DAYS AND
OVER, AND NONACCRUAL LOANS
Accruing loans past due 90
days and over $708 590 562
Nonaccrual loans 4,709 2,594 1,857
Total past due loans 90
days and over, and
nonaccrual loans $5,417 3,184 2,419
Commercial as % of loans, net 0.89% 0.38 0.31
Consumer as % of loans, net 1.39% 0.95 0.74

(a) Principally auto loans; nonaccrual status does not apply to
student loans.
(b) Restructured loans are not significant.
(c) These ratios do not include nonperforming assets included in
loans held for sale.
(d) These ratios reflect nonperforming loans included in loans
held for sale. Loans held for sale are recorded at the lower of
cost or market value, and accordingly, the amounts shown and
included in the ratios are net of the transferred allowance for
loan losses and the lower of cost or market value adjustments.

PAGE 18
WACHOVIA CORPORATION AND SUBSIDIARIES
NONPERFORMING ASSETS
(Unaudited)
2007 2006
First Fourth
(In millions) Quarter Quarter
NONPERFORMING ASSETS
Nonaccrual loans
Commercial
Commercial, financial and
agricultural $303 226
Commercial real estate -
construction and mortgage 117 93
Total commercial 420 319
Consumer
Real estate secured
First lien 1,076 868
Second lien 37 32
Installment and other loans (a) 51 15
Total consumer 1,164 915
Total nonaccrual loans 1,584 1,234
Foreclosed properties (b) 155 132
Total nonperforming assets $1,739 1,366
as % of loans, net, and foreclosed
properties (c) 0.41% 0.32
Nonperforming loans included
in loans held for sale
Commercial $1 1
Consumer 25 15
Total nonperforming assets
included in loans held for sale 26 16
Total nonperforming assets included
in loans and in loans held for sale $1,765 1,382
as % of loans, net, foreclosed
properties and loans held for sale (d) 0.40% 0.32
PAST DUE LOANS 90 DAYS AND OVER,
AND NONACCRUAL LOANS

Accruing loans past due 90 days and over $555 650
Nonaccrual loans 1,584 1,234
Total past due loans 90 days and
over, and nonaccrual loans $2,139 1,884
Commercial as % of loans, net 0.28% 0.23
Consumer as % of loans, net 0.66% 0.59

(a) Principally auto loans; nonaccrual status does not apply to
student loans.
(b) Restructured loans are not significant.
(c) These ratios do not include nonperforming assets included in
loans held for sale.
(d) These ratios reflect nonperforming loans included in loans
held for sale. Loans held for sale are recorded at the lower
of cost or market value, and accordingly, the amounts shown
and included in the ratios are net of the transferred
allowance for loan losses and the lower of cost or market
value adjustments.

PAGE 19
WACHOVIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
2007
(In millions, Fourth Third Second
except per share data) Quarter Quarter Quarter
ASSETS
Cash and due from banks $15,124 12,681 12,065
Interest-bearing bank balances 3,057 4,449 2,726
Federal funds sold and
securities purchased under
resale agreements 15,449 11,995 11,511
Total cash and
cash equivalents 33,630 29,125 26,302
Trading account assets 55,882 54,835 51,540
Securities 115,037 111,827 106,184
Loans, net of unearned income 461,954 449,206 429,120
Allowance for loan losses (4,507) (3,505) (3,390)
Loans, net 457,447 445,701 425,730
Loans held for sale 16,772 21,431 17,733
Premises and equipment 6,605 6,002 6,080
Due from customers on acceptances 1,418 1,295 831
Goodwill 43,122 38,848 38,766
Other intangible assets 2,119 1,380 1,468
Other assets 50,864 43,724 40,794
Total assets $782,896 754,168 715,428

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing deposits 60,893 56,825 62,112
Interest-bearing deposits 388,236 365,112 347,918
Total deposits 449,129 421,937 410,030
Short-term borrowings 50,393 62,714 52,715
Bank acceptances outstanding 1,424 1,303 840
Trading account liabilities 21,585 17,771 19,319
Other liabilities 19,151 18,424 18,080
Long-term debt 161,007 158,584 142,047
Total liabilities 702,689 680,733 643,031
Minority interest in net assets
of consolidated subsidiaries 3,335 3,295 3,131

STOCKHOLDERS' EQUITY
Dividend Equalization Preferred
shares, no par value, 97 million
shares issued and outstanding
at December 31, 2007 - - -
Non-Cumulative Perpetual Class A
Preferred Stock, Series I,
$100,000 liquidation preference per
share, 25,010 shares authorized - - -
Non-Cumulative Perpetual Class A
Preferred Stock, Series J,
$1,000 liquidation preference per
share, 92 million shares issued and
outstanding at December 31, 2007 2,300 - -
Common stock, $3.33-1/3 par
value; authorized 3 billion shares,
outstanding 1.960 billion shares
at December 31, 2007 6,534 6,283 6,289
Paid-in capital 56,149 51,938 51,905
Retained earnings 13,456 14,670 14,335
Accumulated other
comprehensive income, net (1,567) (2,751) (3,263)
Total stockholders' equity 76,872 70,140 69,266
Total liabilities and
stockholders' equity $782,896 754,168 715,428

PAGE 19
WACHOVIA CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
2007 2006
(In millions, First Fourth
except per share data) Quarter Quarter
ASSETS
Cash and due from banks $12,593 15,826
Interest-bearing bank balances 2,591 2,167
Federal funds sold and securities
purchased under resale agreements 10,322 16,923
Total cash and cash equivalents 25,506 34,916
Trading account assets 44,161 44,741
Securities 106,841 108,619
Loans, net of unearned income 421,663 420,158
Allowance for loan losses (3,378) (3,360)
Loans, net 418,285 416,798
Loans held for sale 15,032 12,568
Premises and equipment 6,058 6,141
Due from customers on acceptances 992 855
Goodwill 38,838 38,379
Other intangible assets 1,570 1,635
Other assets 45,386 42,469
Total assets $702,669 707,121

LIABILITIES AND STOCKHOLDERS' EQUITY
Deposits
Noninterest-bearing deposits 63,399 66,572
Interest-bearing deposits 341,871 340,886
Total deposits 405,270 407,458
Short-term borrowings 47,144 49,157
Bank acceptances outstanding 1,004 863
Trading account liabilities 17,291 18,228
Other liabilities 16,741 20,004
Long-term debt 142,334 138,594
Total liabilities 629,784 634,304
Minority interest in net assets
of consolidated subsidiaries 3,099 3,101

STOCKHOLDERS' EQUITY
Dividend Equalization Preferred
shares, no par value, 97
million shares issued and outstanding
at December 31, 2007 - -
Non-Cumulative Perpetual Class A
Preferred Stock, Series I,
$100,000 liquidation preference per
share, 25,010 shares authorized - -
Non-Cumulative Perpetual Class A
Preferred Stock, Series J, $1,000
liquidation preference per share,
92 million shares issued and
outstanding at December 31, 2007 - -
Common stock, $3.33-1/3 par
value; authorized 3 billion shares,
outstanding 1.960 billion shares
at December 31, 2007 6,316 6,300
Paid-in capital 52,026 51,793
Retained earnings 13,378 13,723
Accumulated other comprehensive income,
net (1,934) (2,100)
Total stockholders' equity 69,786 69,716
Total liabilities and
stockholders' equity $702,669 707,121

PAGE 20
WACHOVIA CORPORATION AND SUBSIDIARIES
NET INTEREST INCOME SUMMARIES
(Unaudited)
FOURTH QUARTER 2007
Average
Interest Rates
Average Income/ Earned/
(In millions) Balances Expense Paid
ASSETS
Interest-bearing bank balances $5,083 64 5.05%
Federal funds sold and securities
purchased under resale agreements 12,901 155 4.77
Trading account assets 37,694 569 6.04
Securities 115,436 1,625 5.62
Loans
Commercial
Commercial, financial
and agricultural 111,500 1,908 6.79
Real estate - construction
and other 18,435 318 6.85
Real estate - mortgage 22,973 426 7.36
Lease financing 7,374 145 7.82
Foreign 27,882 380 5.42
Total commercial 188,164 3,177 6.70
Consumer
Real estate secured 227,893 4,042 7.08
Student loans 8,073 126 6.19
Installment loans 25,675 651 10.04
Total consumer 261,641 4,819 7.35
Total loans 449,805 7,996 7.08
Loans held for sale 18,998 360 7.53
Other earning assets 10,223 166 6.48
Total earning assets
excluding derivatives 650,140 10,935 6.70
Risk management derivatives (a) - 19 0.01
Total earning assets
including derivatives 650,140 10,954 6.71
Cash and due from banks 12,028
Other assets 101,319
Total assets $763,487

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and NOW accounts 83,370 345 1.64
Money market accounts 121,717 949 3.09
Other consumer time 127,061 1,557 4.86
Foreign 27,354 306 4.44
Other time 20,169 263 5.16
Total interest-bearing
deposits 379,671 3,420 3.57
Federal funds purchased and
securities sold under
repurchase agreements 36,386 413 4.50
Commercial paper 7,272 78 4.27
Securities sold short 6,728 61 3.62
Other short-term borrowings 10,369 58 2.24
Long-term debt 158,704 2,129 5.34
Total interest-bearing
liabilities excluding
derivatives 599,130 6,159 4.08
Risk management derivatives (a) - 121 0.08
Total interest-bearing
liabilities including
derivatives 599,130 6,280 4.16
Noninterest-bearing deposits 57,895
Other liabilities 32,476
Stockholders' equity 73,986
Total liabilities and
stockholders' equity $763,487

Interest income and rate earned -
including derivatives $10,954 6.71%
Interest expense and equivalent
rate paid - including derivatives 6,280 3.83
Net interest income and margin -
including derivatives $4,674 2.88%

(a) The rates earned and the rates paid on risk management
derivatives are based on off-balance sheet notional amounts. The
fair value of these instruments is included in other assets and
other liabilities.

PAGE 20
WACHOVIA CORPORATION AND SUBSIDIARIES
NET INTEREST INCOME SUMMARIES
(Unaudited)

THIRD QUARTER 2007
Average
Interest Rates
Average Income/ Earned/
(In millions) Balances Expense Paid
ASSETS
Interest-bearing bank balances $6,459 93 5.68%
Federal funds sold and securities
purchased under resale agreements 14,206 194 5.42
Trading account assets 38,737 575 5.93
Securities 111,424 1,522 5.46
Loans
Commercial
Commercial, financial
and agricultural 106,263 1,927 7.19
Real estate - construction
and other 17,795 344 7.66
Real estate - mortgage 20,883 406 7.71
Lease financing 7,523 146 7.80
Foreign 22,208 308 5.53
Total commercial 174,672 3,131 7.12
Consumer
Real estate secured 223,356 4,070 7.28
Student loans 7,299 122 6.61
Installment loans 24,474 614 9.99
Total consumer 255,129 4,806 7.52
Total loans 429,801 7,937 7.36
Loans held for sale 20,209 363 7.14
Other earning assets 7,937 138 6.91
Total earning assets
excluding derivatives 628,773 10,822 6.86
Risk management derivatives (a) - 42 0.02
Total earning assets
including derivatives 628,773 10,864 6.88
Cash and due from banks 11,134
Other assets 89,097
Total assets $729,004

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and NOW accounts 81,851 357 1.73
Money market accounts 116,404 980 3.34
Other consumer time 122,474 1,507 4.88
Foreign 23,322 292 4.97
Other time 13,776 187 5.40
Total interest-bearing
deposits 357,827 3,323 3.68
Federal funds purchased and
securities sold under
repurchase agreements 44,334 556 4.98
Commercial paper 5,799 65 4.42
Securities sold short 7,420 70 3.74
Other short-term borrowings 7,793 55 2.74
Long-term debt 151,226 2,067 5.44
Total interest-bearing
liabilities
excluding derivatives 574,399 6,136 4.24
Risk management derivatives (a) - 144 0.10
Total interest-bearing
liabilities
including derivatives 574,399 6,280 4.34
Noninterest-bearing deposits 58,280
Other liabilities 26,468
Stockholders' equity 69,857
Total liabilities and
stockholders' equity $729,004

Interest income and rate earned -
including derivatives $10,864 6.88%
Interest expense and equivalent
rate paid - including
derivatives 6,280 3.96
Net interest income and margin -
including derivatives $4,584 2.92%

(a) The rates earned and the rates paid on risk management
derivatives are based on off-balance sheet notional amounts. The
fair value of these instruments is included in other assets and
other liabilities.

PAGE 21
WACHOVIA CORPORATION AND SUBSIDIARIES
NET INTEREST INCOME SUMMARIES
(Unaudited)
SECOND QUARTER 2007
Average
Interest Rates
Average Income/ Earned/
(In millions) Balances Expense Paid

ASSETS
Interest-bearing bank balances $3,384 50 6.00%
Federal funds sold and securities
purchased under resale agreements 12,110 158 5.25
Trading account assets 35,165 519 5.90
Securities 108,433 1,467 5.41
Loans
Commercial
Commercial, financial
and agricultural 101,012 1,805 7.16
Real estate - construction
and other 17,334 329 7.62
Real estate - mortgage 20,175 378 7.53
Lease financing 7,759 150 7.74
Foreign 19,232 265 5.51
Total commercial 165,512 2,927 7.09
Consumer
Real estate secured 222,096 4,042 7.28
Student loans 8,850 141 6.42
Installment loans 24,799 609 9.38
Total consumer 255,745 4,792 7.46
Total loans 421,257 7,719 7.31
Loans held for sale 17,644 285 6.47
Other earning assets 7,985 144 7.23
Total earning assets
excluding derivatives 605,978 10,342 6.82
Risk management derivatives (a) - 46 0.03
Total earning assets
including derivatives 605,978 10,388 6.85
Cash and due from banks 11,533
Other assets 87,262
Total assets $704,773

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and NOW accounts 83,977 367 1.75
Money market accounts 111,562 976 3.51
Other consumer time 120,684 1,455 4.84
Foreign 21,871 270 4.96
Other time 8,051 107 5.30
Total interest-bearing
deposits 346,145 3,175 3.68
Federal funds purchased and
securities sold under
repurchase agreements 38,031 473 4.98
Commercial paper 5,143 60 4.67
Securities sold short 7,158 67 3.75
Other short-term borrowings 7,688 52 2.77
Long-term debt 143,504 1,923 5.37
Total interest-bearing
liabilities
excluding derivatives 547,669 5,750 4.21
Risk management derivatives (a) - 151 0.11
Total interest-bearing
liabilities
including derivatives 547,669 5,901 4.32
Noninterest-bearing deposits 62,273
Other liabilities 25,514
Stockholders' equity 69,317
Total liabilities and
stockholders' equity $704,773

Interest income and rate earned -
including derivatives $10,388 6.85%
Interest expense and equivalent
rate paid - including derivatives 5,901 3.91
Net interest income and margin -
including derivatives $4,487 2.94%

(a) The rates earned and the rates paid on risk management
derivatives are based on off-balance sheet notional amounts.
The fair value of these instruments is included in other assets
and other liabilities.

PAGE 21
WACHOVIA CORPORATION AND SUBSIDIARIES
NET INTEREST INCOME SUMMARIES
(Unaudited)
FIRST QUARTER 2007
Average
Interest Rates
Average Income/ Earned/
(In millions) Balances Expense Paid

ASSETS
Interest-bearing bank balances $1,523 30 7.80%
Federal funds sold and securities
purchased under resale agreements 14,124 177 5.07
Trading account assets 29,681 442 5.97
Securities 108,071 1,461 5.42
Loans
Commercial
Commercial, financial
and agricultural 98,413 1,736 7.16
Real estate - construction
and other 16,508 313 7.69
Real estate - mortgage 20,231 380 7.61
Lease financing 7,730 150 7.75
Foreign 14,406 196 5.49
Total commercial 157,288 2,775 7.15
Consumer
Real estate secured 225,909 4,148 7.36
Student loans 8,524 136 6.47
Installment loans 23,540 566 9.42
Total consumer 257,973 4,850 7.52
Total loans 415,261 7,625 7.38
Loans held for sale 16,748 255 6.16
Other earning assets 8,255 139 6.82
Total earning assets
excluding derivatives 593,663 10,129 6.86
Risk management derivatives (a) - 48 0.03
Total earning assets
including derivatives 593,663 10,177 6.89
Cash and due from banks 12,260
Other assets 85,106
Total assets $691,029

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and NOW accounts 84,247 373 1.80
Money market accounts 107,785 917 3.45
Other consumer time 116,262 1,369 4.77
Foreign 20,802 249 4.85
Other time 9,034 119 5.36
Total interest-bearing
deposits 338,130 3,027 3.63
Federal funds purchased and
securities sold under
repurchase agreements 35,142 430 4.97
Commercial paper 4,920 57 4.72
Securities sold short 8,709 83 3.86
Other short-term borrowings 6,898 44 2.54
Long-term debt 141,979 1,880 5.35
Total interest-bearing
liabilities
excluding derivatives 535,778 5,521 4.17
Risk management derivatives (a) - 119 0.09
Total interest-bearing
liabilities
including derivatives 535,778 5,640 4.26
Noninterest-bearing deposits 60,976
Other liabilities 24,955
Stockholders' equity 69,320
Total liabilities and
stockholders' equity $691,029

Interest income and rate earned -
including derivatives $10,177 6.89%
Interest expense and equivalent
rate paid - including derivatives 5,640 3.85
Net interest income and margin -
including derivatives $4,537 3.04%

(a) The rates earned and the rates paid on risk management
derivatives are based on off-balance sheet notional amounts.
The fair value of these instruments is included in other assets
and other liabilities.

PAGE 21
WACHOVIA CORPORATION AND SUBSIDIARIES
NET INTEREST INCOME SUMMARIES
(Unaudited)
FOURTH QUARTER 2006
Average
Interest Rates
Average Income/ Earned/
(In millions) Balances Expense Paid

ASSETS
Interest-bearing bank balances $3,596 54 5.95%
Federal funds sold and securities
purchased under resale
agreements 20,830 268 5.11
Trading account assets 31,069 469 6.03
Securities 108,543 1,467 5.40
Loans
Commercial
Commercial, financial
and agricultural 96,359 1,726 7.10
Real estate - construction
and other 16,091 311 7.67
Real estate - mortgage 19,830 380 7.61
Lease financing 9,674 166 6.88
Foreign 12,352 170 5.49
Total commercial 154,306 2,753 7.08
Consumer
Real estate secured 226,870 4,240 7.47
Student loans 8,886 145 6.49
Installment loans 22,499 546 9.62
Total consumer 258,255 4,931 7.63
Total loans 412,561 7,684 7.42
Loans held for sale 11,928 200 6.70
Other earning assets 8,366 149 7.05
Total earning assets
excluding derivatives 596,893 10,291 6.87
Risk management derivatives (a) - 114 0.08
Total earning assets
including derivatives 596,893 10,405 6.95
Cash and due from banks 12,418
Other assets 89,376
Total assets $698,687

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and NOW accounts 82,924 398 1.90
Money market accounts 104,620 913 3.46
Other consumer time 111,858 1,310 4.65
Foreign 20,245 241 4.73
Other time 12,708 166 5.17
Total interest-bearing
deposits 332,355 3,028 3.61
Federal funds purchased and
securities sold under
repurchase agreements 43,732 537 4.87
Commercial paper 5,043 60 4.72
Securities sold short 9,934 94 3.75
Other short-term borrowings 6,530 38 2.38
Long-term debt 139,364 1,873 5.35
Total interest-bearing
liabilities
excluding derivatives 536,958 5,630 4.16
Risk management derivatives (a) - 163 0.13
Total interest-bearing
liabilities
including derivatives 536,958 5,793 4.29
Noninterest-bearing deposits 63,025
Other liabilities 28,979
Stockholders' equity 69,725
Total liabilities and
stockholders' equity $698,687

Interest income and rate earned -
including derivatives $10,405 6.95%
Interest expense and equivalent
rate paid - including derivatives 5,793 3.86
Net interest income and margin -
including derivatives $4,612 3.09%

(a) The rates earned and the rates paid on risk management
derivatives are based on off-balance sheet notional amounts.
The fair value of these instruments is included in other assets
and other liabilities.

PAGE 22
WACHOVIA CORPORATION AND SUBSIDIARIES
NET INTEREST INCOME SUMMARIES
(Unaudited)

YEAR ENDED 2007
Average
Interest Rates
Average Income/ Earned/
(In millions) Balances Expense Paid
ASSETS
Interest-bearing bank balances $4,128 237 5.74%
Federal funds sold and
securities purchased under resale
agreements 13,334 684 5.13
Trading account assets 35,351 2,105 5.95
Securities 110,863 6,075 5.48
Loans
Commercial
Commercial, financial
and agricultural 104,338 7,376 7.07
Real estate - construction
and other 17,524 1,304 7.44
Real estate - mortgage 21,073 1,590 7.55
Lease financing 7,596 591 7.78
Foreign 20,972 1,149 5.48
Total commercial 171,503 12,010 7.00
Consumer
Real estate secured 224,815 16,302 7.25
Student loans 8,183 525 6.42
Installment loans 24,627 2,440 9.71
Total consumer 257,625 19,267 7.46
Total loans 429,128 31,277 7.28
Loans held for sale 18,411 1,263 6.86
Other earning assets 8,603 587 6.83
Total earning assets
excluding derivatives 619,818 42,228 6.81
Risk management derivatives (a) - 155 0.02
Total earning assets
including derivatives 619,818 42,383 6.83
Cash and due from banks 11,737
Other assets 90,736
Total assets $722,291

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and NOW accounts 83,355 1,442 1.73
Money market accounts 114,411 3,822 3.34
Other consumer time 121,652 5,888 4.84
Foreign 23,355 1,117 4.78
Other time 12,791 676 5.28
Total interest-bearing
deposits 355,564 12,945 3.64
Federal funds purchased and
securities sold under
repurchase agreements 38,493 1,872 4.86
Commercial paper 5,790 260 4.49
Securities sold short 7,498 281 3.75
Other short-term borrowings 8,195 209 2.55
Long-term debt 148,906 7,999 5.37
Total interest-bearing
liabilities
excluding derivatives 564,446 23,566 4.18
Risk management derivatives (a) - 535 0.09
Total interest-bearing
liabilities
including derivatives 564,446 24,101 4.27
Noninterest-bearing deposits 59,843
Other liabilities 27,371
Stockholders' equity 70,631
Total liabilities and
stockholders' equity $722,291

Interest income and rate earned -
including derivatives $42,383 6.83%
Interest expense and equivalent
rate paid - including derivatives 24,101 3.89
Net interest income and margin -
including derivatives $18,282 2.94%

(a) The rates earned and the rates paid on risk management
derivatives are based on off-balance sheet notional amounts. The
fair value of these instruments is included in other assets and
other liabilities.

PAGE 22
WACHOVIA CORPORATION AND SUBSIDIARIES
NET INTEREST INCOME SUMMARIES
(Unaudited)
YEAR ENDED 2006
Average
Interest Rates
Average Income/ Earned/
(In millions) Balances Expense Paid
ASSETS
Interest-bearing bank balances $2,793 144 5.16%
Federal funds sold and securities
purchased under resale agreements 18,911 910 4.82
Trading account assets 29,695 1,615 5.44
Securities 118,170 6,353 5.38
Loans
Commercial
Commercial, financial
and agricultural 92,100 6,365 6.91
Real estate - construction
and other 15,259 1,139 7.46
Real estate - mortgage 19,904 1,477 7.42
Lease financing 9,836 684 6.95
Foreign 11,360 588 5.18
Total commercial 148,459 10,253 6.91
Consumer
Real estate secured 130,275 9,008 6.91
Student loans 9,975 633 6.35
Installment loans 19,013 1,787 9.40
Total consumer 159,263 11,428 7.18
Total loans 307,722 21,681 7.05
Loans held for sale 10,428 707 6.78
Other earning assets 6,343 479 7.54
Total earning assets
excluding derivatives 494,062 31,889 6.45
Risk management derivatives (a) - 531 0.11
Total earning assets
including derivatives 494,062 32,420 6.56
Cash and due from banks 12,300
Other assets 73,972
Total assets $580,334

LIABILITIES AND STOCKHOLDERS' EQUITY
Interest-bearing deposits
Savings and NOW accounts 79,194 1,389 1.75
Money market accounts 100,824 3,209 3.18
Other consumer time 64,872 2,730 4.21
Foreign 20,305 906 4.46
Other time 13,949 707 5.07
Total interest-bearing
deposits 279,144 8,941 3.20
Federal funds purchased and
securities sold under
repurchase agreements 48,457 2,212 4.56
Commercial paper 4,775 215 4.50
Securities sold short 9,168 313 3.41
Other short-term borrowings 6,431 144 2.26
Long-term debt 87,178 4,605 5.28
Total interest-bearing
liabilities
excluding derivatives 435,153 16,430 3.78
Risk management derivatives (a) - 586 0.13
Total interest-bearing
liabilities
including derivatives 435,153 17,016 3.91
Noninterest-bearing deposits 64,136
Other liabilities 26,782
Stockholders' equity 54,263
Total liabilities and
stockholders' equity $580,334

Interest income and rate earned -
including derivatives $32,420 6.56%
Interest expense and equivalent
rate paid - including derivatives 17,016 3.44
Net interest income and margin -
including derivatives $15,404 3.12%

(a) The rates earned and the rates paid on risk management
derivatives are based on off-balance sheet notional amounts.
The fair value of these instruments is included in other assets
and other liabilities.

PAGE 23
WACHOVIA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES
(Unaudited)
2007
(In millions, except Fourth Third
per share data) * Quarter Quarter
INCOME FROM CONTINUING
OPERATIONS
Net income (GAAP) A $51 1,618
Discontinued operations,
net of income taxes
(GAAP) - -
Income from continuing
operations (GAAP) 51 1,618
Merger-related and
restructuring expenses
(GAAP) 109 21
Earnings excluding
merger-related and
restructuring expenses,
and discontinued
operations B 160 1,639
Other intangible
amortization (GAAP) 64 60
Earnings excluding
merger-related
and restructuring
expenses, other
intangible amortization
and discontinued
operations C $224 1,699

RETURN ON AVERAGE COMMON
STOCKHOLDERS' EQUITY
Average common
stockholders'
equity (GAAP) D $73,599 69,857
Merger-related and
restructuring expenses
(GAAP) 100 36
Discontinued operations
(GAAP) - -
Average common
stockholders' equity,
excluding merger-related
and restructuring
expenses, and
discontinued
operations E 73,699 69,893
Average intangible
assets (GAAP) F (44,941) (40,198)
Average common
stockholders' equity,
excluding merger-related
and restructuring
expenses, other
intangible
amortization
and discontinued
operations G $28,758 29,695
Return on average common
stockholders' equity
GAAP A/D 0.28% 9.19
Excluding
merger-related and
restructuring
expenses and
discontinued
operations B/E 0.86 9.31
Return on average
tangible common
stockholders' equity
GAAP A/D+F 0.71 21.64
Excluding
merger-related and
restructuring
expenses,
other intangible
amortization and
discontinued
operations C/G 3.09% 22.70

RETURN ON AVERAGE ASSETS
Average assets (GAAP) H $763,487 729,004
Average intangible
assets (GAAP) (44,941) (40,198)
Average tangible
assets (GAAP) I 718,546 688,806
Average assets (GAAP) 763,487 729,004
Merger-related and
restructuring expenses
(GAAP) 100 36
Discontinued operations
(GAAP) - -
Average assets, excluding
merger-related and
restructuring
expenses, and
discontinued
operations J 763,587 729,040
Average intangible assets
(GAAP) (44,941) (40,198)
Average tangible assets,
excluding merger-related
and restructuring
expenses, and
discontinued
operations K $718,646 688,842
Return on average assets
GAAP A/H 0.03% 0.88
Excluding merger-
related and
restructuring expenses,
and discontinued
operations B/J 0.08 0.89
Return on average
tangible assets
GAAP A/I 0.03 0.93
Excluding merger-
related and
restructuring
expenses, other
intangible
amortization
and discontinued
operations C/K 0.12% 0.98

PAGE 23
WACHOVIA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES
(Unaudited)
2007
(In millions, Second First
except per share data) * Quarter Quarter
INCOME FROM CONTINUING
OPERATIONS
Net income (GAAP) A $2,341 2,302
Discontinued operations,
net of income taxes
(GAAP) - -
Income from continuing
operations (GAAP) 2,341 2,302
Merger-related and
restructuring expenses
(GAAP) 20 6
Earnings excluding
merger-related
and restructuring
expenses, and
discontinued operations B 2,361 2,308
Other intangible
amortization (GAAP) 66 76
Earnings excluding
merger-related and
restructuring expenses,
other intangible
amortization and
discontinued operations C $2,427 2,384

RETURN ON AVERAGE COMMON
STOCKHOLDERS' EQUITY
Average common
stockholders'
equity (GAAP) D $69,317 69,320
Merger-related and
restructuring expenses
(GAAP) 14 1
Discontinued operations
(GAAP) - -
Average common
stockholders' equity,
excluding merger-related
and restructuring
expenses, and
discontinued
operations E 69,331 69,321
Average intangible
assets (GAAP) F (40,328) (40,263)
Average common
stockholders' equity,
excluding merger-related
and restructuring
Expenses, other
intangible amortization
and discontinued
operations G $29,003 29,058
Return on average common
stockholders' equity
GAAP A/D 13.54% 13.47
Excluding merger-
related and
restructuring
expenses and
discontinued
operations B/E 13.66 13.50
Return on average
tangible common
stockholders' equity
GAAP A/D+F 32.38 32.14
Excluding merger-
related and
restructuring
expenses, other
intangible amortization
and discontinued
operations C/G 33.57% 33.27

RETURN ON AVERAGE ASSETS
Average assets (GAAP) H $704,773 691,029
Average intangible
assets (GAAP) (40,328) (40,263)
Average tangible assets
(GAAP) I 664,445 650,766
Average assets (GAAP) 704,773 691,029
Merger-related and
restructuring
expenses (GAAP) 14 1
Discontinued operations
(GAAP) - -
Average assets, excluding
merger-related and
restructuring expenses,
and discontinued
operations J 704,787 691,030
Average intangible assets
(GAAP) (40,328) (40,263)
Average tangible assets,
excluding merger-related
and restructuring expenses,
and discontinued operations K $664,459 650,767
Return on average assets
GAAP A/H 1.33% 1.35
Excluding merger-
related and
restructuring expenses,
and discontinued
operations B/J 1.34 1.35
Return on average
tangible assets
GAAP A/I 1.41 1.43
Excluding merger-
related and restructuring
expenses, other
intangible amortization
and discontinued
operations C/K 1.47% 1.49

PAGE 23
WACHOVIA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES
(Unaudited)
2006
(In millions, Fourth
except per share data) * Quarter
INCOME FROM CONTINUING
OPERATIONS
Net income (GAAP) A $2,301
Discontinued operations,
net of income taxes (GAAP) (46)
Income from continuing
operations (GAAP) 2,255
Merger-related and
restructuring expenses (GAAP) 29
Earnings excluding merger-
related and restructuring
expenses, and
discontinued operations B 2,284
Other intangible
amortization (GAAP) 90
Earnings excluding merger-
related and restructuring
expenses, other
intangible amortization
and discontinued
operations C $2,374

RETURN ON AVERAGE COMMON
STOCKHOLDERS' EQUITY
Average common
stockholders'
equity (GAAP) D $69,725
Merger-related and
restructuring expenses
(GAAP) 95
Discontinued operations
(GAAP) (8)
Average common
stockholders' equity,
excluding merger-related
and restructuring
expenses, and
discontinued
operations E 69,812
Average intangible
assets (GAAP) F (39,979)
Average common
stockholders'
equity, excluding
merger-related and
restructuring
expenses, other intangible
amortization
and discontinued
operations G $29,833
Return on average common
stockholders' equity
GAAP A/D 13.09%
Excluding merger-
related and
restructuring expenses
and discontinued
operations B/E 12.98
Return on average
tangible common
stockholders' equity
GAAP A/D+F 30.68
Excluding merger-
related and
restructuring
expenses, other
intangible
amortization and
discontinued
operations C/G 31.58%

RETURN ON AVERAGE ASSETS
Average assets (GAAP) H $698,687
Average intangible assets
(GAAP) (39,979)
Average tangible
assets (GAAP) I 658,708
Average assets (GAAP) 698,687
Merger-related and
restructuring expenses
(GAAP) 95
Discontinued operations
(GAAP) (8)
Average assets, excluding
merger-related and
restructuring expenses,
and discontinued
operations J 698,774
Average intangible assets
(GAAP) (39,979)
Average tangible assets,
excluding merger-related
and restructuring
expenses, and discontinued
operations K $658,795
Return on average assets
GAAP A/H 1.31%
Excluding merger-related
and restructuring expenses,
and discontinued
operations B/J 1.30
Return on average tangible
assets
GAAP A/I 1.39
Excluding merger-related
and restructuring
expenses, other intangible
amortization and
discontinued
operations C/K 1.43%

PAGE 24
WACHOVIA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES
(Unaudited)
2007
(In millions, Fourth Third
except per share data) * Quarter Quarter
OVERHEAD EFFICIENCY RATIOS
Noninterest expense
(GAAP) L $5,786 4,525
Merger-related and
restructuring expenses
(GAAP) (187) (36)
Noninterest expense,
excluding merger-related and
restructuring expenses M 5,599 4,489
Other intangible amortization
(GAAP) (111) (92)
Noninterest expense,
excluding merger-related
and restructuring expenses,
and other intangible
amortization N $5,488 4,397
Net interest income (GAAP) $4,630 4,551
Tax-equivalent adjustment 44 33
Net interest income (Tax-
equivalent) 4,674 4,584
Fee and other income (GAAP) 2,526 2,797
Total O $7,200 7,381
Retail Brokerage Services,
excluding insurance
Noninterest expense (GAAP) P $1,743 1,055
Net interest income (GAAP) $308 257
Tax-equivalent adjustment 1 -
Net interest income (Tax-
equivalent) 309 257
Fee and other income (GAAP) 1,908 1,180
Total Q $2,217 1,437
Overhead efficiency ratios
GAAP L/O 80.36% 61.31
Excluding merger-related
and restructuring
expenses M/O 77.76 60.83
Excluding merger-related
and restructuring
expenses, and
brokerage M-P/O-Q 77.39 57.78
Excluding merger-related
and restructuring
expenses, and other
intangible
amortization N/O 76.21 59.59
Excluding merger-related
and restructuring
expenses, other
intangible
amortization and
brokerage N-P/O-Q 75.15% 56.25

OPERATING LEVERAGE
Operating leverage (GAAP) $(1,441) (983)
Merger-related and
restructuring expenses
(GAAP) 151 4
Operating leverage,
excluding merger-related
and restructuring expenses (1,290) (979)
Other intangible
amortization (GAAP) 21 (12)
Operating leverage, excluding
merger-related and
restructuring
expenses, and other
intangible amortization $(1,269) (991)

DIVIDEND PAYOUT RATIOS
ON COMMON SHARES
Dividends paid per
common share R $0.64 0.64
Diluted earnings per common
share (GAAP) S $0.03 0.85
Merger-related and
restructuring expenses
(GAAP) 0.05 0.01
Other intangible amortization
(GAAP) 0.03 0.03
Discontinued operations (GAAP) - -
Diluted earnings per common
share, excluding
merger-related and
restructuring expenses,
other intangible
amortization and
discontinued operations T $0.11 0.89
Dividend payout ratios
GAAP R/S 2,133.33% 75.29
Excluding merger-related
and restructuring
expenses, other
intangible amortization
and discontinued
operations R/T 581.82% 71.91

* The letters included in the columns are provided to show how the
various ratios presented in the tables on pages 23 and 24 are
calculated. For example, return on average assets on a GAAP basis
is calculated by dividing income (GAAP) by average assets (GAAP)
(i.e., A/H) and annualized where appropriate.

PAGE 24
WACHOVIA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES
(Unaudited)
2007
(In millions, Second First
except per share data) * Quarter Quarter
OVERHEAD EFFICIENCY RATIOS
Noninterest expense (GAAP) L $4,890 4,621
Merger-related and
restructuring expenses
(GAAP) (32) (10)
Noninterest expense,
excluding merger-
related and
restructuring expenses M 4,858 4,611
Other intangible amortization
(GAAP) (103) (118)
Noninterest expense, excluding
merger-related and
restructuring expenses,
and other intangible
amortization N $4,755 4,493
Net interest income (GAAP) $4,449 4,500
Tax-equivalent adjustment 38 37
Net interest income (Tax-
equivalent) 4,487 4,537
Fee and other income (GAAP) 4,240 3,734
Total O $8,727 8,271
Retail Brokerage Services,
excluding insurance
Noninterest expense
(GAAP) P $1,094 1,036
Net interest income (GAAP) $251 252
Tax-equivalent adjustment - -
Net interest income
(Tax-equivalent) 251 252
Fee and other income
(GAAP) 1,202 1,185
Total Q $1,453 1,437
Overhead efficiency ratios
GAAP L/O 56.02% 55.88
Excluding merger-related
and restructuring
expenses M/O 55.65 55.75
Excluding merger-related
and restructuring
expenses, and
brokerage M-P/O-Q 51.73 52.31
Excluding merger-related
and restructuring
expenses, and other
intangible amortization N/O 54.47 54.33
Excluding merger-related
and restructuring
expenses, other
intangible amortization
and brokerage N-P/O-Q 50.30% 50.59

OPERATING LEVERAGE
Operating leverage (GAAP) $189 (13)
Merger-related and
restructuring expenses
(GAAP) 21 (38)
Operating leverage, excluding
merger-related and
restructuring expenses 210 (51)
Other intangible amortization
(GAAP) (13) (24)
Operating leverage, excluding
merger-related and restructuring
expenses, and other
intangible amortization $197 (75)

DIVIDEND PAYOUT RATIOS
ON COMMON SHARES
Dividends paid per
common share R $0.56 0.56
Diluted earnings per common
share (GAAP) S $1.22 1.20
Merger-related and
restructuring expenses
(GAAP) 0.01 -
Other intangible amortization
(GAAP) 0.04 0.04
Discontinued operations (GAAP) - -
Diluted earnings per common
share, excluding merger-related
and restructuring expenses,
other intangible amortization
and discontinued
operations T $1.27 1.24
Dividend payout ratios
GAAP R/S 45.90% 46.67
Excluding merger-related
and restructuring
expenses, other intangible
amortization and
discontinued operations R/T 44.09% 45.16

* The letters included in the columns are provided to show how the
various ratios presented in the tables on pages 23 and 24 are
calculated. For example, return on average assets on a GAAP basis
is calculated by dividing income (GAAP) by average assets (GAAP)
(i.e., A/H) and annualized where appropriate.

PAGE 24
WACHOVIA CORPORATION AND SUBSIDIARIES
RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES
(Unaudited)
2006
(In millions, Fourth
except per share data) * Quarter
OVERHEAD EFFICIENCY RATIOS
Noninterest expense
(GAAP) L $4,962
Merger-related and
restructuring
expenses (GAAP) (49)
Noninterest expense, excluding
merger-related and
restructuring expenses M 4,913
Other intangible amortization
(GAAP) (141)
Noninterest expense, excluding
merger-related and
restructuring expenses, and
other intangible
amortization N $4,772
Net interest income (GAAP) $4,577
Tax-equivalent adjustment 35
Net interest income
(Tax-equivalent) 4,612
Fee and other income (GAAP) 4,011
Total O $8,623
Retail Brokerage Services,
excluding insurance
Noninterest expense (GAAP) P $1,021
Net interest income (GAAP) $249
Tax-equivalent adjustment -
Net interest income (Tax-
equivalent) 249
Fee and other income (GAAP) 1,109
Total Q $1,358
Overhead efficiency ratios
GAAP L/O 57.53%
Excluding merger-related
and restructuring
expenses M/O 56.97
Excluding merger-related
and restructuring
expenses, and brokerage M-P/O-Q 53.55
Excluding merger-related
and restructuring
expenses, and other
intangible amortization N/O 55.33
Excluding merger-related
and restructuring expenses,
other intangible
amortization
and brokerage N-P/O-Q 51.61%

OPERATING LEVERAGE
Operating leverage (GAAP) $665
Merger-related and
restructuring expenses
(GAAP) 10
Operating leverage,
excluding merger-related
and restructuring
expenses 675
Other intangible
amortization (GAAP) 50
Operating leverage, excluding
merger-related and
restructuring expenses,
and other
intangible amortization $725

DIVIDEND PAYOUT RATIOS
ON COMMON SHARES
Dividends paid per
common share R $0.56
Diluted earnings per common
share (GAAP) S $1.20
Merger-related and
restructuring expenses (GAAP) 0.01
Other intangible amortization
(GAAP) 0.05
Discontinued operations (GAAP) (0.02)
Diluted earnings per common
share, excluding
merger-related and
restructuring expenses,
other intangible amortization
and discontinued
operations T $1.24
Dividend payout ratios
GAAP R/S 46.67%
Excluding merger-related
and restructuring expenses,
other intangible
amortization and
discontinued operations R/T 45.16%

* The letters included in the columns are provided to show how the
various ratios presented in the tables on pages 23 and 24 are
calculated. For example, return on average assets on a GAAP basis
is calculated by dividing income (GAAP) by average assets (GAAP)
(i.e., A/H) and annualized where appropriate.

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