Wachovia Corporation

1Q08 Financial Highlights

April 14, 2008

Exhibit (99)(b)

1

Loss

of

$350

million,

EPS

(a)

of

($0.20)

-

Operating loss of $270 million, EPS of ($0.14)

Core strength in General Bank, Capital Management and Wealth Management

overwhelmed by credit costs and continued market disruption losses

-

$2.8 billion provision including $1.1 billion Pick-a-Pay reserve build

Enhanced Pick-a-Pay credit modeling with greater emphasis on forecasted future changes in

customer behaviors assuming continued house price depreciation, particularly in stressed

markets

Expect further robust provisioning in 2008-2009

-

$2.0 billion of market disruption-related losses including $729 million on unfunded leveraged

finance positions

Proactive actions provide solid foundation in order to further strengthen the

balance sheet and build capital to top tier levels

-

Reduce dividend by 41% to quarterly level of $0.375 per share

Annual capital retention of $2.1 billion

-

Plans

to

raise

capital

of

approximately

$7

-

8

billion

through

public

offering

-

Provides capacity to build Tier 1 capital ratio in excess of 8.8% by YE2009

Results significantly

affected by higher

credit costs and

continued market

disruption-related

losses

Significant actions

taken to strengthen

the balance sheet

1Q08 Quarterly highlights

(a) EPS calculated on net loss available to common stockholders of $393 million, reflecting preferred dividends of $43

million.

2

Financial highlights

Results include $2.1 billion reserve build

and $2.0 billion of market disruption losses

somewhat offset by $445 million of FAS

157/159 fair value net gains and Visa IPO

gain of $225 million

NII up 6% YoY and up 3% QoQ on strong

earning asset growth and improved margin

-

Low-cost core deposits up 7% YoY; up 3%

QoQ

Fees down 17% YoY on higher market

disruption losses;

up 13% QoQ

-

Effects of market disruption overwhelm

underlying strength in traditional banking

Expenses up 18% YoY and down 6% QoQ

-

QoQ declines driven by lower incentives

somewhat offset by higher FAS123R expense

New dividend level consistent with

anticipated 40-50% cash payout ratio over

intermediate horizon

Outlook for 2008 on page 32

vs

vs

($ in millions, except per share data)

1Q08

4Q07

1Q07

Net interest income

$

4,805

3

%

6

Fee and other income

3,091

13

(17)

Total revenue

7,896

6

%

(5)

Provision

2,831

89

-

Expense

5,441

(6)

18

Minority interest

155

45

14

Pre-tax income (loss)

(531)

-

-

Income taxes (benefits)

(181)

10

-

Net income (loss)

(350)

-

-

Preferred dividends

43

-

-

Net income (loss) available to

common stockholders

(393)

-

-

Net merger-related

123

-

-

Operating income (loss)/

continuing operations

$

(270)

-

%

-

Avg

basic shares

1,963

-

%

4

EPS

$

(0.20)

-

-

EPS operating

$

(0.14)

-

%

-

Net interest margin

2.92

%

4

bps

(14)

Return

on

avg

equity

(2.11)

-

-

Overhead efficiency ratio

68.91

%

(909)

bps

-

3

Balance sheet strengthening

Building capital and reserves

Capital preservation and build

Provides ability to operate from a position

of strength

Reducing dividend to quarterly rate of

$0.375; preserves $2.1 billion of capital

annually

-

Targeting

40

-

50%

cash

payout

ratio

(a)

Hypothetical $7 billion common /

convertible preferred capital raise would

add 150

bps to Tier 1 Capital ratio

(b)

Credit reserve build

Refined reserve

modeling;

use of new dynamic model results in higher expected loss factors on

Pick-a-Pay

-

Results

in

current

modeled

charge-offs

and

additional

reserve

of

$3.2

-

$3.8

billion

in

2008

and

$2.4

-

$2.8

billion

in

2009

and

allowance

to

loan

ratio

of

approximately

2.5%

-

2.8%

by

YE

2009

(a)

-

Additional granularity on future loss expectations in stressed MSAs based on changing consumer behaviors

tied to declining home prices; less reliant on historical frequency and loss severity experience

(a) Before net merger-related and restructuring expenses, other intangible amortization and discontinued operations.

(b) Assumes estimated Net Risk Weighted Assets at 3/31/08; $3.5 billion of common and $3.5  billion of convertible preferred capital issued and one year benefit at reduced quarterly

dividend rate of $0.375 per share.

(c) Market data as of 4/11/08.

(a) As of March 31, 2008, see important assumptions as outlined on page 21.  Future changes in assumptions could cause forecasts to change.

Dividend Yield

(c)

9.2%

6.9%

5.5%

5.4%

4.4%

3.6%

WB

$2.56

BAC

C

WB

$1.50

WFC

JPM

4

Capital Ratios

vs

1Q08

(a)

4Q07

4Q07

Tier 1

7.5

%

7.4

10

bps

Total Capital

12.1

11.8

30

Leverage

6.2

%

6.1

10

bps

Strong liquidity and capital position

Proactively managing liquidity and capital for

challenging environment

Retail franchise provides significant deposit

funding

Capital ratios hold steady

-

1Q08 $3.5 billion preferred stock offering; strong

demand

-

Lower dividend preserves 35 bps of Tier 1  

capital annually

-

Plans to further enhance capital ratios

Wachovia Bank, N.A. has generally been a

liquidity provider to the market throughout

the market disruption

Wachovia Corporation continues to maintain

a very prudent liquidity profile

Period end as of 3/31/08.

10%

22%

6%

55%

7%

Stable Liability Funding

87% funded by Deposits, LTD & Equity

Total

Deposits

Other

Liab

ST

Debt

LT

Debt

Equity

(a)

1Q08

capital

ratios

are

based

on

estimates.

5

Market disruption losses and write-downs

(a) Net of associated hedges.

(b) 4Q07 includes $50 million of provision expense relating to loan impairments.

Market

Disruption-Related

Losses,

Net

(a)

2007/

2008

($ in millions)

1Q08

4Q07

3Q07

Life-to-Date

Corporate and Investment Bank

ABS CDO and other subprime-related

$

(339)

(818)

(230)

(1,387)

Commercial mortgage (CMBS)

(521)

(600)

(488)

(1,609)

Consumer mortgage

(251)

(123)

(82)

(456)

Leveraged finance

(309)

93

(272)

(488)

Other

(144)

59

(109)

(194)

Total

(1,564)

(1,389)

(1,181)

(4,134)

Capital Management

Asset-backed commercial paper

0

(17)

(40)

(57)

Parent

Impairment losses

(b)

(409)

(94)

0

(503)

Total, net

(1,973)

(1,500)

(1,221)

(4,694)

Discontinued operations

(BluePoint)

$

-

(210)

(120)

(330)

6

Average deposit growth

7% YoY core deposit growth

-

Low cost core up 7% YoY on strong money

market and checking sales

1Q08 deposit growth driven by

-

Retail brokerage FDIC sweep deposits

increase of $5.0 billion

-

Strong commercial results on treasury and

trade finance sales

-

Checking account net new sales of 174,000

-

Leveraging World Savings franchise

-

De novo branch expansion

-

Way2Save product launch

Results exceeding expectations with 33% of

accounts generating a new checking account

vs

vs

($ in billions)

1Q08

4Q07

1Q07

DDA

$

56.3

(3)

%

(8)

Interest checking

53.1

3

5

Savings

33.4

5

-

Money market

128.1

5

19

Low-cost core

270.9

3

7

Retail CDs

123.6

(3)

6

  Core deposits

394.5

1

7

Other deposits

48.9

3

64

Total deposits

$

443.4

1

%

11

Core Deposit Growth

$369.3

$378.5

$379.0

$390.0

$394.5

1Q07

2Q07

3Q07

4Q07

1Q08

Low-Cost Core Deposits

Other Core Deposits

7

Average loan growth

Loans up 12% YoY and 4% QoQ

-

Strength in commercial, commercial real estate,

traditional mortgage and auto

Traditional mortgage up 10% YoY on

disciplined originations of marketable

mortgages; Pick-a-Pay mortgage up 2% as

slower prepay speeds offset lower volumes

C & I up 28% YoY on strength in large

corporate and middle-market and included

net $2.5 billion in foreign commercial real

estate and commercial loans transferred from

held-for-sale in 1Q08

CRE up 20% YoY on organic growth and

$2.5

billion in loans transferred from held-for-

sale in late 4Q07 and 1Q08

Current outlook:

-

Modest growth expectations for remainder of

2008

vs

vs

($ in billions)

1Q08

4Q07

1Q07

Pick-a-Payment mortgage

$

121.0

1

%

2

Traditional mortgage

52.6

4

10

Home equity

57.8

1

(3)

Other consumer

36.0

7

12

Total consumer

267.4

2

4

Commercial and industrial

154.7

5

28

Commercial real estate

43.9

6

20

Total commercial

198.6

6

26

Total loans, net

$

465.9

4

%

12

8

General Bank key metrics

Average loans up 8% YoY

-

Mortgage originations down 11%; higher

marketable production offset by lower Pick-a-

Pay volumes

-

Home equity down 41% reflecting

implementation of tightened credit standards

> 95%

direct channel originations

-

Auto originations up 26%

Average deposits up 5% YoY

-

1Q08 net new checking account sales of

174,000, including 139,000 checking accounts

linked to Way2Save accounts

Debit/credit card purchase volume up 18%

YoY

Opened 23 de novo branches and

consolidated 58

branches in 1Q08

New/lost ratio of 1.27

-

Retail customer acquisition rate of 14.9%;

attrition of 11.7%

Customer satisfaction remains best in class

(a) Volume of purchase activity on debit and credit cards.

(b) Percentage of customers who rate Wachovia a 7 on all three loyalty questions

(scale 1-7). Goal: 55%. Results based on Gallup survey.

(c) Controllable retail households acquired/retail households attrited; controllable

households exclude single service mortgage.

(d) New commercial banking relationship or customer with no prior loan or

deposit account.

vs

vs

($ in millions)

1Q08

4Q07

1Q07

Product originations

Mortgage

$

12,787

3

%

(11)

First lien home equity

2,148

(9)

(29)

Second lien home equity

2,689

(29)

(47)

Auto

3,720

16

26

Avg

loans, net

$

311,447

3

8

Net new checking

174,431

86

(35)

Avg

core deposits

$

297,680

-

5

Card

purchase

volume

(a)

$

17,424

(2)

%

18

Customer

loyalty

(b)

52.50

%

(50)

bps

40

New/Lost

ratio

(c)

1.27

(5)

%

1

Commercial customer

acquisition

(d)

310

(15)

%

(16)

9

General Bank summary

Segment earnings of $1.2 billion, down 17%

YoY and 7% QoQ largely reflecting rising

credit costs

NII reflects balance sheet growth despite

margin compression and rising NPAs

Fees up 17% YoY reflecting strong fee

growth in most categories

-

Strong service charge and interchange income

growth on higher volumes

-

Mortgage banking fees up on higher marketable

origination volumes

-

Investment sales referral income up on in-bank

annuity sales

Modest expense growth

-

34% of expense increase driven by higher

credit-related expenses and 18% by growth

initiatives

Provision driven by higher losses in

consumer real estate and auto

vs

vs

($ in millions)

1Q08

4Q07

1Q07

Net interest income

$

3,455

2

%

2

Service charges

572

(6)

11

Interchange income

186

(2)

22

Mortgage

banking

fees

69

33

All

other

fees/ income

163

-

38

Fee and other income

990

7

Total revenue

4,500

3

5

Provision

569

78

-

Expense

2,050

-

10

Segment earnings

$

1,195

(7)

%

(17)

17

17

10

211

Wealth Management summary

Segment earnings of $92 million

-

Up 10% YoY and 1% QoQ in spite of

environmental headwinds

Revenues up 4% YoY

-

NII flat YoY as loan growth was offset by

deposit spread compression

-

Fees up 8% YoY as growth in fiduciary and

asset management fees offset lower insurance

commissions

Investment management sales remain strong

but down YoY on market volatility and wealth

lens client segmentation

Expenses flat YoY on continued focus on

tight expense management

AUM up 5% YoY

(a)

Assets

under

management

include

$39

billion

in

assets

managed

by

and

reported

in

Capital

Management.

(b) Trust and Investment Management new recurring fee sales.

(c) Annualized wealth revenue per relationship manager.

vs

vs

($ in millions)

1Q08

4Q07

1Q07

Net interest income

$

181

(1)

%

-

Fee and other income

8

(1)

Total revenue

397

(1)

4

Provision

5

(29)

-

Expense

246

(1)

-

Segment earnings

92

1

10

Avg

loans, net

22,413

3

10

Avg

core deposits

17,397

4

1

AUM

(a)

79,834

(5)

5

Investment

mgmt

sales

(b)

14.0

9

(22)

Revenue/

RM

(c)

$

2.9

7

-

Wealth Mgmt producers

970

(2)

%

2

11

Corporate and Investment Bank summary

Segment loss of $77 million

-

Net market disruption losses of $1.6 billion

reflecting lower valuations in virtually all asset

classes

Results include $729 million loss on unfunded

leveraged finance commitments

-

Principal investing gains of $414 million

included $486 million in FAS 157 net gains

-

Strong performance in high grade, global rate

products and equities offset by lower results in

structured products and leveraged finance

Expenses down 18% YoY on lower

revenue-based incentive compensation

Additional planned markets-related

headcount reductions of 450 –

550 FTEs

and additional cost reductions will benefit

margins further in 3Q08

Provision driven by higher losses on

residential-related commercial real estate

Loans up 38% YoY driven by growth in

commercial real estate and international

trade finance and reflects transfers from

held for sale to the portfolio

vs

vs

($ in millions)

1Q08

4Q07

1Q07

Principal Investing

$

414

-

%

-

IB originations

401

-

(9)

Capital markets

(875)

(3)

-

Lending

599

3

10

Treasury and Trade Finance

284

1

11

Total revenue

823

-

(54)

Provision

197

76

-

Expense

747

(22)

(18)

Segment loss

(77)

(82)

-

Avg

loans, net

101,024

10

38

Avg

core deposits

33,623

(7)

(2)

Lending commitments

$

113,521

(4)

3

($ in millions)

1Q08

4Q07

3Q07

ABS CDO and other

subprime-related

$

(339)

(818)

(230)

Commercial mortgage (CMBS)

(521)

(600)

(488)

Consumer mortgage

(251)

(123)

(82)

Leveraged finance

(309)

93

(272)

Other

(144)

59

(109)

Total CIB market disruption-

related losses

(1,564)

(1,389)

(1,181)

Discontinued ops

(BluePoint)

$

-

(210)

(120)

%

12

1Q08 net valuation losses of $521 million including

losses on $3.5 billion of loans moved from held-for-

sale in 1Q08

-

Results reflect continued spread widening despite solid

underlying fundamentals

Net exposure of $3.0 billion as of 3/31/08

-

$3.5 billion income producing commercial real

estate loans moved to the portfolio in 1Q08

-

Sold $4.2 billion during the quarter

-

Reduced hedging as overall levels decreased

Commercial mortgage and leveraged finance

Distribution-related exposure

Leveraged finance

1Q08 net valuation losses of $309

million

-

Assumes 100% funding of current unfunded commitments

Net exposure of $8.2 billion including $6.5 billion of unfunded commitments

-

$1.3 billion of exposure, including $750 million of outstandings, moved to the portfolio in 1Q08

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

$14,000

$16,000

$18,000

$20,000

2Q07

3Q07

4Q07

1Q08

Gross MTM Exposure

Net MTM Exposure

Commercial mortgage (CMBS)

($ in millions)

13

Corporate and Investment Bank

Remaining distribution exposure

(a)

At 3/31/08, $2.0 billion is hedged with highly rated monoline financial guarantors; $900 million with a AA-rated large European bank; $1.2 billion with a large AA-rated global

multi-line insurer, both under margin agreements.

Subprime-related, CMBS and Leveraged Finance

3/31/08

Distribution Exposure, Net

Exposure

3/31/08

Hedged With

3/31/08

12/31/07

3/31/08

Gross

Various

Net

Net

vs

($ in millions)

Exposure

Instruments

Exposure

Exposure

12/31/07

ABS CDO-related exposures:

Super senior ABS CDO exposures

High grade

$

2,403

(2,403)

0

0

-

%

Mezzanine

2,038

(1,599)

439

613

(28)

CDO-squared

0

0

0

0

-

Total super senior ABS CDO exposures

4,441

(4,002)

439

613

(28)

Other retained ABS CDO-related exposures

67

0

67

208

(68)

Total

ABS

CDO-related

exposures

(a)

4,508

(4,002)

506

821

(38)

Subprime RMBS exposures:

AAA rated

1,684

0

1,684

1,948

(14)

Below AAA rated (net of hedges)

(365)

0

(365)

(253)

44

Total subprime RMBS exposures

1,319

0

1,319

1,695

(22)

Total subprime-related exposure

5,827

(4,002)

1,825

2,516

(27)

Commercial mortgage-related (CMBS)

3,793

(840)

2,953

7,564

(61)

Leveraged finance (net of applicable fees)

$

n.a.

n.a.

8,157

9,149

(11)

%

14

Capital Management key metrics

Series 7 brokers consistent with 4Q07 levels

-

Growth in high-producing brokers offset by

lower-producing broker attrition

Series 6 reps up 23% QoQ on growth

throughout the footprint and Western

expansion

Recurring revenue percentage in Retail

Brokerage up 160 bps YoY

-

Managed account assets up 35% YoY

-

FDIC sweep deposits up 35% YoY

Record annuity sales in 1Q08, up 52% YoY

and 19% QoQ

AUM down 18% YoY on 2Q07 change in

investment management discretion on $34

billion which had minimal impact on fees

Gross fluctuating fund flows down 2%

YoY excluding $1B 1Q07 Evergreen closed-

end fund offering

-

Retail money market net flows up 203% YoY

(a) Annualized.

(b)

Assets

under

management

include

$39

billion

in

assets

managed

for

Wealth

Management,

which

are

also

reported

in

that

segment.

In

2Q07

there

was

a

$34

billion change in investment  discretion of previously co-managed AUM, now solely managed by Wealth Management.

vs

vs

($ in billions)

1Q08

4Q07

1Q07

Retail Brokerage

Series 7 brokers

14,583

-

%

79

Bank series 6 reps

4,059

23

61

Managed acct assets

$

190.3

(6)

35

Avg

FDIC sweep deposits

42.1

13

35

Client assets

$

1,118.5

(4)

%

45

Recurring revenue

61.8

%

40

bps

160

Rev/broker

(000)

(a)

$

584

(3)

%

(17)

In-bank revenue

(millions)

282

3

7

Loan originations

$

1.7

13

%

42

Pre-tax margin

24.3

%

140

bps

(550)

Asset Management

Total AUM

(b)

$

258.7

(6)

%

(18)

Gross fluctuating 

fund flows

$

2.6

4

%

(30)

Pre-tax margin

25.3

%

160

bps

530

15

Capital Management summary

Segment earnings of $381 million up 22%

YoY driven by the addition of AG Edwards

Revenues up 42% YoY driven by

acquisitions and managed account asset

growth

-

NII up 6% on strong FDIC sweep deposit

growth partially offset by spread compression

-

Commissions up 54% on addition of AGE

which contributed $319 million during the

quarter

-

Fiduciary and asset management fees up

53%; up 11% before the benefit of acquisitions

-

AGE revenue retention in line with original

expectations

Expenses up 50% YoY driven by $572

million related to acquisitions

-

Excluding acquisitions, expenses up 4%

driven by salaries and employee benefits, and

legal costs

vs

vs

($ in millions)

1Q08

4Q07

1Q07

Net interest income

$

274

(14)

%

6

Commissions

824

(3)

54

Fiduciary/ asset mgmt

1,304

(1)

53

Other fee income

63

37

(29)

Fee and other income

2,191

(1)

48

Total revenue

2,455

(3)

42

Provision

-

-

-

Expense

1,855

(4)

50

Segment earnings

381

4

22

Avg

loans, net

2,562

12

65

Avg

core deposits

$

43,084

13

%

36

16

Credit quality

Increase in NPAs reflects significant

weakness in the housing market

particularly in specific regions of California

and Florida

Provision of $2.8 billion; net charge-offs of

$765 million or 66 bps

-

Commercial net charge-offs of $237 million, up

$75 million QoQ; included $126 million from

Real Estate Financial Services

1Q08 results include a $66 million loss on a

loan backed by ABS securities in CIB

-

Consumer net charge-offs of $528 million, up

$229 million QoQ

Consumer real estate losses of $341 million

include Pick-a-Pay losses of $240 million

Installment losses of $185 million, up $35

million QoQ driven by higher consumer DDA

overdraft losses; auto losses up $6 million

(a) Excludes nonperforming assets in loans held for sale.

($ in millions)

1Q08

4Q07

1Q07

Nonaccrual loans

$

7,788

4,995

1,632

Restructured loans

56

-

-

Foreclosed properties

530

389

155

Total NPAs

$

8,374

5,384

1,787

as % of loans, net ORE

(a)

1.74

%

1.16

0.42

Provision

$

2,831

1,497

177

Net charge-offs

$

765

461

155

Commercial

0.48

%

0.34

0.07

Consumer

0.79

0.46

0.20

Total c/o ratio

0.66

0.41

0.15

Commercial past dues

0.05

0.05

0.03

Consumer past dues

0.35

%

0.23

0.20

17

Allowance for credit losses

Allowance for credit losses of $6.8 billion

increased $3.2 billion from 1Q07 to 1.41% of

loans

-

Covers 1Q08 annualized net charge-offs 2.2

times

Provision of $2.8 billion exceeded charge-offs

by $2.1 billion

-

$1.6 billion due to higher expected loss factors

for Pick-a-Pay, home equity, auto and traditional

mortgage on significant market weakness and

changing consumer behaviors

Pick-a-Pay allowance ratio of 155 bps vs. 66 bps

in 4Q07

Home equity allowance ratio of 79 bps

Auto portfolio allowance ratio of 321 bps

-

$138 million commercial over provision on higher

frequency and loss severity expectations

-

$116 million commercial real estate over

provision including $98 million of FAS 114

reserves

-

$165 million increase in unallocated reserves

($ in millions)

1Q08

4Q07

1Q07

Allowance for loan losses

$

6,567

4,507

3,378

Allowance for credit losses

$

6,767

4,717

3,533

Allowance for loan losses

  as % of loans, net

1.37

%

0.98

0.80

    Commercial

1.25

1.20

1.12

    Consumer

1.34

0.74

0.53

  as % of nonaccrual and

  restructured loans

84

90

207

  as % of NPAs

78

84

189

Allowance for credit losses

  as % of loans, net

1.41

%

1.02

0.84

18

Mortgage portfolio

Average traditional mortgage LTV of 72%;

average FICO score of 732

-

Traditional mortgage NPAs up $303 million QoQ;

current average LTV of 79%

(b)

1Q08 results include $253 million of NPAs relating to

$2.8 billion of non-branch originated Alt-A loans in CIB

transferred at market value from HFS to the portfolio at

an average LTV of 81%; these loans have no associated

allowance

Average Pick-a-Pay LTV of 71%

-

Pick-a-Pay NPAs up $1.6 billion QoQ; current average

LTV of NPAs of 89%

(b)

-

Trends largely reflect the continued effect of declining

home values, particularly in stressed areas such as CA

and FL

-

Tightening underwriting standards based on

geographic risk

FICO >

700 and max LTV of 60% in markets with

significant home price declines

FICO >

660 and max LTV of 80% in most stable markets

-

Focused on aggressive resolution of problem assets

with accelerated disposition of foreclosed properties

Sold 825 properties in 1Q08; new inflows to REO of

1,107

All FICO scores and LTVs at origination unless otherwise noted.

(a)

Includes other non Pick-a-Pay product balances of $6.0 billion in 1Q08, $5.4

billion in 4Q07, and $3.0 billion in 1Q07.

(b) Based on AVM automated valuation method using February data.

($ in millions)

1Q08

4Q07

1Q07

Traditional mortgage

$

48,932

47,991

43,934

NPAs

$

560

257

141

as a % of loans

1.15

%

0.54

0.32

Net charge-offs

$

29

16

5

as % of avg

loans

0.23

%

0.13

0.04

Pick-a-Pay

(a)

$

121,161

119,630

117,506

NPAs

$

4,623

3,052

924

as a % of loans

3.82

%

2.55

0.79

Net charge-offs

$

240

93

1

as % of avg

loans

0.79

%

0.31

-

19

Wachovia Mortgage

90+ days past due vs. industry

Source: Industry Prime, Alt-A, Subprime and NegAm ARM delinquency data from LoanPerformance,

a unit of First American CoreLogic.

.

0%

1%

2%

3%

4%

5%

6%

7%

8%

9%

10%

11%

12%

13%

14%

WB Traditional

Pick-a-Pay

Industry Prime

Industry Alt-A

Industry Subprime

Industry Prime ARM NegAm

20

Consumer real estate

Key market statistics

($ in millions)

(a) AVM is automated valuation method using February data. Source: Veros.

(b) Portfolio-weighted OFHEO index for home price changes.

(c) Management forecast of the OFHEO index for home prices weighted for the portfolio.

Region

Outstandings

Original LTV

Current

LTV -

AVM

(a)

OFHEO Change  

Peak -

1Q08

(b)

Forecast          

1Q08 -

Trough

(c)

Original

FICO

Current

FICO

CA

$70,579

70

80

-7.6%

-6.4%

666

657

FL

$12,030

71

77

-8.7%

-8.5%

683

662

NJ

$5,660

71

71

-3.3%

-6.9%

692

686

AZ

$3,095

72

80

-8.8%

-18.7%

681

674

TX

$2,986

75

62

N/A

N/A

679

661

Other States

$26,810

72

73

-2.4%

-5.2%

687

678

Total Pick-a-Pay

$121,161

71

78

-6.1%

-6.8%

674

664

FL

$8,351

69

69

730

727

CA

$7,483

66

61

742

753

NC

$4,171

74

68

732

731

NJ

$3,931

66

67

731

732

GA

$3,454

74

73

725

722

Other States

$21,541

71

66

731

732

Total

$48,932

72

67

732

734

Total Mortgage

$170,093

70

75

690

684

FL

$12,169

74

75

728

723

NJ

$7,358

71

67

733

732

NC

$6,047

81

74

730

727

PA

$6,033

76

67

731

732

VA

$4,876

75

68

733

734

Other States

$23,620

76

74

724

719

Total Home Equity

$60,104

75

72

726

725

21

Pick-a-Pay mortgage

Refined reserve modeling in 1Q08

-8.5%

-8.7%

Florida

-6.4%

-7.6%

California

-6.8%

-6.1%

Nationwide

1Q08 –

Trough

Peak –

1Q08

Portfolio-weighted OFHEO-

based home price forecasts

At 3/31/08, new model results in a higher 12-month forward view of expected losses that required additional

portfolio reserves of $1.1 billion due to increased propensity to default tied to further home price declines

-

Reflects

February

current

LTVs

which

indicate

that

approximately

14%

of

the

Pick-a-Pay

portfolio

has

current

LTV > 100% with 75% in California and 10% in Florida

More precisely captures key factors observed to drive default rates and economic losses

Reflects

February

estimated

traditional

correlation

between

borrower

credit

profile

and

default

frequency

but

incorporates

the

view

that

changes

in

borrowers’

equity

levels

are

a

greater

predictor

of

future

losses

than

FICO

scores

Includes approximately 20 loan / borrower characteristics to further enhance loss forecast by:

-

Borrower propensity to default and loss severity correlated to changes in the OFHEO index

-

Connecting borrower equity to projected changes in home prices by geographic region

Model variables influenced by management’s current economic outlook:

-

Full year 2008 GDP of flat to 1% growth with negative growth in first half

-

Rising unemployment reaches 6% sometime in 2009

-

Management forecast of the OFHEO index: Currently estimate that we are roughly halfway through the housing

price decline

Utilized newly developed loss forecasting model that more strongly correlates forward

expected losses to changes in home prices and the resulting change in consumer

behavior on default frequency and loss severity; less reliant on

historical roll rates

Expect

trough to

occur in

mid-09

22

Pick-a-Pay mortgage

Modeled credit costs

Actual

Actual

Full Year

Full Year

4Q07

1Q08

2008

2009

Charge-offs

$0.09

$ 0.2

$1.3 -

1.7

$2.4 -

2.8

Additional provision

0.55

1.1

1.9 -

2.1

Total credit costs

0.64

1.3

3.2 –

3.8

2.4 –

2.8

Ending allowance

$0.82

$2.0

$2.7 -

2.9

$2.7 –

2.9

Ending

allowance/loans

(b)

0.7%

1.6

%

2.4% -

2.7%

2.5% -

2.8%

($ in billions)

The

above

modeled

output

builds

to

an

estimated

cumulative

losses

range

of

7

–

8%

over

the

remaining

life of the pool

As an illustration, a 7.5% cumulative loss scenario could imply that 20% of the loans in the portfolio

default through foreclosure and suffer a loss of 45% of the original property values, on average, assuming

loans were originated at a 75% LTV, plus disposition costs of 10% of the loan balance

These forecast outcomes may be affected by changes in a variety of factors including actual home price

trends, economic conditions, changes in borrower behavior, regulatory changes and loss mitigation

strategies

(a) Based on assumptions on page 21, as of March 31, 2008. Future changes in assumptions could cause forecasts to change.

(b) Assumes forecasted loan balances for 2008 and 2009.

.

Pick-a-Pay Modeled Credit Costs

(a)

None expected

23

Wachovia Pick-a-Pay

March 2008 deferred interest analysis

Deferred interest of $3.5 billion represented 3.04%

of the portfolio

(a)

-

$176 million in deferred interest associated with nonperforming loans, 3.77% of NPAs

Borrowers utilization of minimum payment option remains fairly constant

-

68% elected in March 2008 vs. 66% in March 2007

-

52% elected the minimum option in each of the past 6 months

-

41% elected the minimum option in each of the past 12 months

$1.2 billion, or less than 1% of borrowers, with a deferred interest balance > 10% of current balance

Current average LTV

(b)

of 82% for loans with deferred interest balance > 10% of current balance

(a)

$115.0

billion

in

Pick-a-Pay

product

excludes

other

balances

of

$6.2

billion.

(b) Current average LTVs based on February 2008 AVMs. Source: Veros.  

($ in millions)

1Q08

4Q07

1Q07

Deferred interest balance by LTV

At or below 80%

60% or less

$

329

305

231

60.01% to 70%

434

402

298

70.01% to 80%

1,090

991

699

  Subtotal

1,853

1,698

1,228

80.01% to 85%

1,033

935

617

85.01% to 90%

466

327

40

Greater than 90%

174

129

64

  Subtotal

1,673

1,391

721

    Total deferred interest

$

3,526

3,089

1,949

24

Wachovia Pick-a-Pay

Proactively managing risk

Significantly tightening underwriting standards based on geographic risk with particular focus

on stressed markets in California and Florida

In markets that have experienced significant housing price declines, we are increasing

minimum

FICO

scores

to

700

and

we

will

allow

up

to

a

maximum

LTV

of

60%

In our most stable markets, our minimum FICO will be 660 and we will allow up to a maximum

LTV of 80%

Conservative in-house appraisal and underwriting approach

Aggressive problem loan resolution

Enhanced collection and loss mitigation

Accelerated disposition of foreclosed properties

Continue

to

offer

conforming

mortgage

products

throughout

all

of

our

markets

25

Home equity loans and lines

45% secured by first lien

75% average LTV

(a)

Portfolio is predominantly customer-

relationship based

-

> 95% of the portfolio originated through

direct channels

-

5% of portfolio in CA and 20% in FL

NPAs up 15 bps QoQ but remain at relatively

low levels

-

Second lien home equity 60+ days past due are

40%

of

the

industry

average

(b)

Charge-offs up 22 bps QoQ driven by

increases in stressed geographies

Implementing additional limitations on

utilization of undrawn equity lines

Period end balances reflect the quarter-end transfer of $2.3 billion of first lien home equity loans to held for sale.

(a) FICOs and LTVs at origination unless otherwise noted.

(b) Source: Loan Performance Data as of January 2008 industry average.

($ in millions)

1Q08

4Q07

1Q07

First lien

$

27,171

27,749

28,629

Second lien

32,933

32,350

30,560

Total home equity

$

60,104

60,099

59,189

30+ days past due

as % of loans

1.37

%

1.32

0.78

NPAs

$

432

342

235

as % of loans

0.72

%

0.57

0.40

Net charge-offs

$

73

38

19

as % of avg

loans

0.47

%

0.25

0.13

26

Wachovia second lien home equity loans

and lines

60+ days past due vs. industry

Second Lien Home Equity Loans

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

WB Total General Bank (a)

WB Bank Channel

Industry

Second Lien Home Equity Lines

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

WB Total General Bank (a)

WB Bank Channel

Industry

(a) Excludes Wealth Management and Retail Brokerage home equity loans and lines.

Source: Industry Prime, Alt-A and Subprime delinquency data from LoanPerformance, a unit of First American CoreLogic.

27

Managed auto portfolio

Managed losses of 2.31% down 5 bps QoQ

-

30+ days past due of 2.05% vs. industry

forecast of 3.54% 

(b)

Managed NPAs as a % of loans of 25 bps;

down 3 bps QoQ

-

Roll rates declined throughout quarter

Began proactive migration towards prime

credit customer originations in mid-2006

Managed Consumer Auto 30+ Days Past Due

vs. Industry

(a)

Includes NPAs and net charge-offs from securitizations not included in our

reported NPAs and net charge-offs as referenced on page 16.

(b) Source: Moody’s Economy.com; 1Q08 industry average is a forecast.

($ in millions)

1Q08

4Q07

1Q07

Managed auto

$

26,357

24,672

22,225

NPAs

(a)

$

67

70

70

as % of loans

0.25

%

0.28

0.31

Net charge-offs

(a)

$

151

145

81

as % of avg

loans

2.31

%

2.36

1.46

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

0.00%

1.00%

2.00%

3.00%

4.00%

5.00%

6.00%

WB Balances

WB 30+ days past due

Industry 30+ days past due

28

Commercial Real Estate

Real Estate Financial Services portfolio

Commercial Real Estate outstandings

(a)

up

12% driven by the 1Q08 transfer to the

portfolio of $3.5

billion in income producing

loans from held-for-sale

Continued review of REFS residential-

related portfolio in response to continued

housing market deterioration

-

1Q08 and 4Q07 portfolio reviews included land

and condo loans as well as residential-related

facilities generally > $2 million

NPAs up $795 million; charge-offs of $126

million up $17 million to 110 bps vs. 115

bps in 4Q07

-

Increases driven largely by residential portfolio

Average maturity of 1.8 years

(a) Includes the Real Estate Financial Services (REFS) portfolio

of $37.3

billion and $10.3 billion in commercial real estate loans held-for-investment

in Investment Banking

($ in millions)

1Q08

4Q07

1Q07

Residential

$

12,197

12,437

11,884

Income producing

35,447

30,199

24,437

Total REFS

(a)

47,644

42,636

36,321

Residential NPAs

1,396

919

63

Income producing NPAs

488

170

11

Total NPAs

$

1,884

1,089

74

as % of loans

3.95

%

2.55

0.20

Residential c/o

$

120

77

6

Income producing c/o

7

32

0

Total net charge-offs

$

126

109

6

as % of avg

loans

1.10

% 

1.15

0.06

29

Real Estate Financial Services

Well diversified loan portfolio

$47.6

Billion Commercial Real

Estate Portfolio

(a)

Office

16%

Retail

13%

Multi-Family

12%

Industrial

5%

Income

Producing

Land

8%

Lodging

Other

3.5%

Single

Family

8%

Residential

Improved

Land

7%

Condos

6%

Residential

Unimproved

Land

3%

Non-RE

Collateral

5%

74% income producing

26% residential-related

-

Average maturity of 1.0 years

Homebuilders -

$4.5B

-

Regional/small builder portfolio is largely

recourse based with disciplined inventory

controls and 1–2 year terms

-

Focus on strong sponsorship/management

Land -

$4.8B

-

Primarily originated with substantial equity

cushion and recourse to borrowers

Condos -

$2.9B

(a) Includes the Real Estate Financial Services portfolio of $37.3 billion and $10.3 billion in commercial real estate loans held-for-investment in Investment Banking

Period-end balance sheet as of 3/31/2008.

5%

5%

3.5%

Mixed

Use

Unsecured

Real Estate

30

Real Estate Financial Services

Geographic concentrations

(a)

Includes the Real Estate Financial Services portfolio of $37.3 billion and $10.3 billion in commercial real estate loans held-for-investment in Investment Banking.

(b) Geographic concentration totals do not include $5.9 billion in Commercial Real Estate outstandings related to loans secured by non-real estate collateral and loans with

undefined property locations. International includes Europe and Asia.

Period-end balance sheet as of 3/31/2008.

$47.6

Billion Commercial Real Estate Portfolio

(a)

Top 10 Geographic Concentrations

(b)

California

$4.3

18%

International

$3.5

10%

North

Carolina

$3.1

9%

Texas

$2.9

7%

Virginia

$2.7

7%

Other Remaining

States

$10.4

Georgia

$2.6

Florida

$7.5

24%

7%

6%

New Jersey

$1.7

4%

New York

$1.6

4%

Pennsylvania

$1.4

3%

31

Middle-market and large corporate

Portfolios much more granular than last

down cycle

-

Average loan size of $1.5MM

Borrowers well positioned and generally

maintaining higher levels of liquidity

1Q08 commercial net losses of 39 bps

-

$66 million of losses related to loans backed

by ABS securities in CIB

$119 Billion Commercial

Loan Portfolio

Agriculture/Forestry/

Fishing

1%

22%

Finance

4%

Other

1%

13%

Manufacturing

Mining

2%

11%

Property

Management

Public

Administration

2%

Retail

Trade

6%

Services

17%

9%

Transportation/

Public Util

9%

Building Contractors

2%

Individuals

NEC/

Nonclass

Insurance

1%

Wholesale

Trade

Period-end balance sheet as of 3/31/2008.

32

Summary and Outlook

Expect 2Q08 net interest income to grow by approximately 5 -

7% over 1Q08 and

then grow modestly over remaining period of 2008

-

Sources of growth to include:

Modest loan growth from 1Q08 levels

Continued deposit growth including growth in FDIC sweep deposits

Benefit of capital raise and lower dividend rate 

Fees remain exposed to net market disruption losses/gains

No share repurchases in the rest of 2008

Targeted capital raise of approximately $7 billion

Tax rate of 28.5 -

29%

33

Appendix

34

Consumer real estate portfolio

FICO scores and LTVs at origination.                           

(a) Second lien LTVs reflect total amount borrowed, including first lien positions held by third parties. LTV data assumes that home equity lines are fully funded.

% Loans

1Q08

Average

Average

LTV

($ in millions)

Balances

FICO

LTV

(a)

> 90%

(a)

Home equity loans and lines

First lien

$

27,171

729

73

%

13

Second lien

32,933

724

76

14

Total home equity loans and lines

60,104

726

75

14

Total mortgage

170,093

690

71

2

Total consumer real estate portolio

230,197

699

72

5

Nonaccrual loans

First lien

5,015

647

75

2

Second lien

75

691

83

22

Total consumer real estate nonaccrual loans

$

5,090

647

75

%

3

35

0.0%

2.0%

4.0%

6.0%

8.0%

Wachovia Mortgage

90+ days past due by vintage vs. industry

0.0%

2.0%

4.0%

6.0%

8.0%

2007 -

$33.4 billion Pick-a-Pay / $10.8 billion Traditional 

0.0%

2.0%

4.0%

6.0%

8.0%

0.0%

2.0%

4.0%

6.0%

8.0%

Source: Industry Prime, Alt-A, Subprime and NegAm ARM delinquency data from LoanPerformance,

a unit of First American CoreLogic.

.

Month

Month

2006 -

$32.9 billion Pick-a-Pay / $8.5 billion Traditional 

2004 -

$12.0 billion Pick-a-Pay / $4.8 billion Traditional 

2005 -

$25.0 billion Pick-a-Pay / $13.9 billion Traditional 

WB Traditional

Pick-a-Pay

Industry Prime

Industry Alt-A

Industry Subprime

Industry Prime ARM NegAm

36

Consumer Real Estate

FICO scores and LTV stratification

Original

FICO

<=60

61-70

71-80

81-90

91-100

100+

Total

Balance

<620

4%

6%

11%

0%

0%

0%

21%

25,160

$   

620-659

3%

5%

14%

0%

0%

0%

21%

26,002

$   

660-699

3%

5%

15%

1%

0%

0%

23%

27,627

$   

>700

6%

7%

21%

1%

0%

0%

35%

42,372

$   

15%

22%

60%

2%

0%

0%

100%

121,161

$ 

<620

0%

0%

1%

0%

1%

0%

2%

1,120

$     

620-659

1%

1%

3%

0%

1%

0%

7%

3,471

$     

660-699

3%

3%

8%

1%

1%

0%

16%

7,887

$     

>700

19%

13%

35%

3%

4%

0%

74%

36,454

$   

24%

17%

48%

5%

6%

0%

100%

48,932

$   

<620

1%

0%

1%

1%

0%

0%

2%

634

$        

620-659

1%

1%

2%

3%

2%

0%

9%

2,473

$     

660-699

3%

2%

3%

6%

3%

0%

17%

4,738

$     

>700

20%

8%

14%

22%

8%

0%

71%

19,326

$   

25%

11%

19%

31%

13%

0%

100%

27,171

$   

<620

1%

0%

1%

1%

0%

0%

3%

844

$        

620-659

1%

1%

2%

3%

2%

0%

9%

2,843

$     

660-699

2%

2%

4%

6%

3%

0%

17%

5,667

$     

>700

11%

8%

16%

28%

8%

0%

72%

23,580

$   

15%

12%

22%

38%

14%

0%

100%

32,933

$   

18%

18%

47%

11%

5%

0%

100%

230,197

$ 

RE Total

Total

Original CLTV

Total

Total

Total

Total

The

percentages

in

the

table

above

may

not

add

to

the

totals

due

to

rounding.

37

Consumer Real Estate FICO scores and LTV

stratification Prior to 2004 and 2005

vintages

Original

FICO

<=80

81-90

91-100

100+

Total

Balance

<=80

81-90

91-100

100+

Total

Balance

<620

17%

0%

0%

0%

17%

4,257

$    

17%

0%

0%

0%

18%

4,376

$    

620-659

19%

0%

0%

0%

19%

4,846

$    

20%

0%

0%

0%

20%

5,111

$    

660-699

24%

0%

0%

0%

24%

5,997

$    

24%

0%

0%

0%

25%

6,127

$    

>700

39%

0%

0%

0%

40%

9,930

$    

37%

0%

0%

0%

38%

9,372

$    

99%

0%

1%

0%

100%

25,031

$  

100%

0%

0%

0%

100%

24,986

$  

<620

2%

0%

1%

0%

3%

296

$       

1%

0%

0%

0%

1%

147

$       

620-659

6%

1%

1%

0%

7%

843

$       

5%

0%

0%

0%

6%

812

$       

660-699

15%

1%

1%

0%

17%

2,031

$    

15%

1%

1%

0%

16%

2,239

$    

>700

68%

3%

2%

0%

73%

8,560

$    

72%

3%

2%

0%

77%

10,750

$  

90%

5%

5%

0%

100%

11,731

$  

93%

4%

3%

0%

100%

13,948

$  

<620

2%

1%

0%

0%

3%

370

$       

1%

0%

0%

0%

2%

85

$         

620-659

5%

4%

2%

0%

11%

1,262

$    

4%

3%

1%

0%

8%

393

$       

660-699

10%

7%

3%

0%

21%

2,343

$    

8%

6%

3%

0%

17%

889

$       

>700

38%

20%

7%

0%

65%

7,415

$    

40%

25%

8%

0%

73%

3,781

$    

55%

32%

12%

0%

100%

11,390

$  

54%

34%

12%

0%

100%

5,149

$    

<620

2%

1%

0%

0%

3%

242

$       

1%

0%

0%

0%

2%

145

$       

620-659

5%

4%

2%

0%

11%

865

$       

4%

3%

1%

0%

8%

533

$       

660-699

9%

8%

5%

0%

22%

1,734

$    

8%

7%

3%

0%

18%

1,216

$    

>700

28%

26%

11%

0%

64%

5,157

$    

33%

31%

8%

0%

72%

4,970

$    

43%

38%

18%

1%

100%

7,998

$    

47%

41%

12%

0%

100%

6,864

$    

79%

14%

7%

0%

100%

55,897

$  

86%

10%

4%

0%

100%

50,853

$  

RE Total

Total

Total

Total

Total

2004 and Prior

2005

Original CLTV

Original CLTV

The

percentages

in

the

table

above

may

not

add

to

the

totals

due

to

rounding.

38

Consumer Real Estate FICO scores and LTV

stratification 2006 and 2007 vintages

Original

FICO

<=80

81-90

91-100

100+

Total

Balance

<=80

81-90

91-100

100+

Total

Balance

<620

25%

0%

0%

0%

25%

8,329

$    

22%

0%

0%

0%

22%

7,346

$    

620-659

22%

0%

0%

0%

22%

7,357

$    

22%

1%

0%

0%

22%

7,474

$    

660-699

21%

1%

0%

0%

21%

6,950

$    

21%

1%

0%

0%

22%

7,343

$    

>700

30%

1%

0%

0%

31%

10,230

$  

32%

2%

0%

0%

34%

11,261

$  

98%

2%

0%

0%

100%

32,866

$  

96%

4%

0%

0%

100%

33,424

$  

<620

2%

0%

1%

0%

3%

255

$       

2%

0%

1%

0%

3%

358

$       

620-659

7%

0%

1%

0%

8%

651

$       

6%

1%

2%

0%

9%

956

$       

660-699

14%

1%

1%

0%

16%

1,392

$    

13%

1%

2%

0%

16%

1,768

$    

>700

65%

4%

4%

0%

73%

6,242

$    

60%

4%

7%

0%

72%

7,750

$    

87%

6%

7%

0%

100%

8,541

$    

82%

6%

12%

0%

100%

10,834

$  

<620

1%

0%

0%

0%

2%

77

$         

1%

0%

0%

0%

2%

90

$         

620-659

4%

2%

2%

0%

9%

390

$       

4%

2%

2%

0%

8%

382

$       

660-699

7%

5%

4%

0%

17%

751

$       

6%

4%

3%

0%

13%

632

$       

>700

37%

26%

11%

0%

73%

3,321

$    

46%

21%

9%

0%

76%

3,578

$    

49%

34%

17%

0%

100%

4,539

$    

57%

28%

15%

0%

100%

4,682

$    

<620

2%

1%

0%

0%

3%

203

$       

2%

1%

0%

0%

3%

234

$       

620-659

4%

3%

1%

0%

8%

673

$       

4%

3%

2%

0%

8%

726

$       

660-699

7%

6%

3%

0%

16%

1,312

$    

7%

5%

3%

0%

15%

1,310

$    

>700

36%

29%

8%

0%

73%

5,875

$    

40%

26%

8%

0%

74%

6,488

$    

50%

38%

12%

0%

100%

8,062

$    

53%

34%

13%

0%

100%

8,757

$    

85%

10%

4%

0%

100%

54,247

$  

84%

11%

5%

0%

100%

57,866

$  

RE Total

Total

Total

Total

Total

2006

2007

Original CLTV

Original CLTV

The

percentages

in

the

table

above

may

not

add

to

the

totals

due

to

rounding.

39

Consumer Real Estate FICO scores and LTV

stratification 2008 and Total

Original

FICO

<=80

81-90

91-100

100+

Total

Balance

<=80

81-90

91-100

100+

Total

Balance

<620

11%

0%

0%

0%

12%

563

$       

21%

0%

0%

0%

21%

25,160

$  

620-659

21%

1%

0%

0%

22%

1,073

$    

21%

0%

0%

0%

21%

26,002

$  

660-699

26%

1%

0%

0%

27%

1,297

$    

22%

1%

0%

0%

23%

27,627

$  

>700

38%

2%

0%

0%

40%

1,922

$    

34%

1%

0%

0%

35%

42,372

$  

96%

4%

0%

0%

100%

4,855

$    

98%

2%

0%

0%

100%

121,161

$

<620

1%

0%

0%

0%

1%

58

$         

2%

0%

1%

0%

2%

1,120

$    

620-659

5%

0%

0%

0%

5%

205

$       

6%

0%

1%

0%

7%

3,471

$    

660-699

11%

0%

1%

0%

12%

474

$       

14%

1%

1%

0%

16%

7,887

$    

>700

76%

3%

2%

0%

81%

3,141

$    

67%

3%

4%

0%

74%

36,454

$  

93%

3%

4%

0%

100%

3,878

$    

89%

5%

6%

0%

100%

48,932

$  

<620

1%

0%

0%

0%

1%

18

$         

1%

1%

0%

0%

2%

634

$       

620-659

3%

1%

0%

0%

4%

58

$         

4%

3%

2%

0%

9%

2,473

$    

660-699

8%

2%

0%

0%

10%

143

$       

8%

6%

3%

0%

17%

4,738

$    

>700

73%

10%

2%

0%

84%

1,192

$    

42%

22%

8%

0%

71%

19,326

$  

85%

13%

2%

0%

100%

1,411

$    

56%

31%

13%

0%

100%

27,171

$  

<620

1%

0%

0%

0%

2%

26

$         

2%

1%

0%

0%

3%

844

$       

620-659

3%

2%

1%

0%

6%

75

$         

4%

3%

2%

0%

9%

2,843

$    

660-699

6%

5%

2%

0%

13%

157

$       

8%

6%

3%

0%

17%

5,667

$    

>700

46%

29%

4%

0%

79%

993

$       

35%

28%

8%

0%

72%

23,580

$  

56%

37%

7%

0%

100%

1,252

$    

49%

38%

14%

0%

100%

32,933

$  

89%

8%

2%

0%

100%

11,333

$  

84%

11%

5%

0%

100%

230,197

$

RE Total

Total

Total

Total

Total

2008

Total

Original CLTV

Original CLTV

The

percentages

in

the

table

above

may

not

add

to

the

totals

due

to

rounding.

40

1Q08

Pick-a-Pay mortgage nonperforming loans

($ in millions)

Total $4,386

Cumulative charge-offs to date of

$187 million (17% of orig. balance)

No charge-offs to date

Initial charge-offs taken at 180 days 

past due as necessary

20%

18%

62%

90 -179 Days

Past Due

(a) LTV is considered to be over 100% if the loan balance exceeds current estimated appraised value less estimated selling costs.

180+ Days  Past Due

Updated

(a)

LTV

100%

180+ Days Past Due

Updated

(a)

LTV > 100%

41

Pick-a-Pay reserve model

Our use of OFHEO in reserve modeling

Office of Federal Housing Enterprise Oversight (OFHEO) is a widely recognized source of

data that measures average price changes in home sales financed by conventional

mortgages, purchased by Fannie Mae or Freddie Mac, and therefore

the data excludes

information on home sales financed by jumbo loans.

We utilize the OFHEO data set as the basis for our allowance modeling for our Pick-a-Pay

portfolio because we believe the data most closely represents the geographic diversity and

granularity, the lower average loan size and the higher average owner equity of this portfolio. 

OFHEO’s data set is very robust, granular and covers a long time series which we believe is a

critical foundation for any modeling exercise. Our historical data and model correlations have

been calibrated to the sensitivities of the OFHEO index.

42

Cautionary statement

The foregoing materials and management’s discussion of them may contain, among other things, certain forward-looking statements with respect to Wachovia,

as well as the goals, plans, objectives, intentions, expectations, financial condition, results of operations, future performance and business of Wachovia,

including, without limitation, (i) statements regarding certain of Wachovia’s goals and expectations with respect to earnings, earnings per share, revenue,

expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of Wachovia’s

credit quality trends, (ii) statements relating to the benefits of the merger between Wachovia and A.G. Edwards, Inc. completed on October 1, 2007 (the “A.G.

Edwards Merger”), including future financial and operating results, cost savings, enhanced revenues and the accretion/dilution to reported earnings that may be

realized

from

the

A.G.

Edwards

Merger,

(iii)

statements

relating

to

the

benefits

of

the

merger

between

Wachovia

and

Golden

West

Financial

Corporation

completed on October 1, 2006 (the “Golden West Merger”), including future financial and operating results, cost savings, enhanced revenues and the

accretion/dilution to reported earnings that may be realized from the Golden West Merger, and (iv) statements preceded by, followed by or that include the words

“may”,

“could”,

“should”,

“would”,

“believe”,

“anticipate”,

“estimate”,

“expect”,

“intend”,

“plan”,

“projects”,

“outlook”

or

similar

expressions.

These

forward-looking

statements are based on the current beliefs and expectations of Wachovia’s management and are subject to significant risks and uncertainties that are subject to

change based on various factors (many of which are beyond Wachovia’s control). Actual results may differ from those set forth in the forward-looking

statements.

The

following

factors,

among

others,

could

cause

Wachovia’s

financial

performance

to

differ

materially

from

that

expressed

in

such

forward-looking

statements: (1) the risk that the applicable businesses in connection with the A.G. Edwards Merger or the Golden West Merger will not be integrated successfully

or such integrations may be more difficult, time-consuming or costly than expected; (2) the risk that expected revenue synergies and cost savings from the A.G.

Edwards

Merger

or

the

Golden

West

Merger

may

not

be

fully

realized

or

realized

within

the

expected

time

frame;

(3)

the

risk

that

revenues

following

the

A.G.

Edwards Merger or the Golden West Merger may be lower than expected; (4) deposit attrition, operating costs, customer loss and business disruption following

the

A.G.

Edwards

Merger

or

the

Golden

West

Merger,

including,

without

limitation,

difficulties

in

maintaining

relationships

with

employees,

may

be

greater

than

expected; (5) the risk that the strength of the United States economy in general and the strength of the local economies in which Wachovia conducts operations

may

be

different

than

expected

resulting

in,

among

other

things,

a

deterioration

in

credit

quality

or

a

reduced

demand

for

credit,

including

the

resultant

effect

on

Wachovia’s loan portfolio and allowance for loan losses; (6) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate

policies of the Board of Governors of the Federal Reserve System; (7) potential or actual litigation; (8) inflation, interest rate, market and monetary fluctuations;

(9)

adverse

conditions

in

the

stock

market,

the

public

debt

market

and

other

capital

markets

(including

changes

in

interest

rate

conditions)

and

the

impact

of

such

conditions

on

Wachovia’s

brokerage

and

capital

markets

activities;

(10)

unanticipated

regulatory

or

judicial

proceedings

or

rulings;

(11)

the

impact

of

changes

in

accounting principles; (12) adverse changes in financial performance and/or condition of Wachovia’s borrowers which could impact repayment of such

borrowers’

outstanding loans; and (13) the impact on Wachovia’s businesses, as well as on the risks set forth above, of various domestic or international military

or terrorist activities or conflicts.

Wachovia cautions that the foregoing list of factors is not exclusive. All subsequent written and oral forward-looking statements concerning Wachovia, the A.G.

Edwards Merger or the Golden West Merger or other matters and attributable to Wachovia or any person acting on its behalf are expressly qualified in their

entirety by the cautionary statements above. Wachovia does not undertake any obligation to update any forward-looking statement, whether written or oral.

The issuer may file a registration statement (including prospectus) with the SEC for the offering to which this communication relates. Before you invest, you

should read the prospectus in that registration statement, the preliminary prospectus supplement and other documents the issuer has filed with the SEC for more

complete

information

about

the

issuer

and

this

offering.

You

may

get

these

documents

for

free

by

visiting

EDGAR

on

the

SEC

Web

site

at

www.sec.gov.

Alternatively, the issuer will arrange to send you the prospectus after filing if you request it by calling toll-free 1-800-326-5897.

43

Notes on non-GAAP financial measures

The information contained herein includes certain non-GAAP financial measures.

Please

refer

to

our

First

Quarter

2008

Quarterly

Earnings

Report

for

additional

information

reconciling

non-GAAP

financial

measures

and

for an important explanation of our use of non-GAAP measures and reconciliation of those non-GAAP measures to GAAP.

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

A.G.

Edwards

(AGE)

and

European

Credit

Management

(ECM)

from

the

key

performance measures of fiduciary and asset management fees and expenses permits evaluation and a comparison of results for

ongoing business operations, and it is on this basis that Wachovia management internally assesses the company’s performance. On page

15,

references

to

Capital

Management’s

results

excluding

AGE

and

ECM

reflect

the

following

growth

for

the

first

quarter

of

2008:

Fiduciary and asset management fees

$360  million

Expenses

$572  million

44

Notes on non-GAAP financial measures

Wachovia also provides certain information regarding its auto loan portfolio on a "managed" basis, which is a non-GAAP financial measure. This

non-GAAP financial measure combines auto loans reported on-balance sheet on a GAAP basis with auto loans that have been securitized and

are off-balance sheet.  Management believes that providing information on a "managed" basis is useful to investors in understanding underlying

operational performance, trends, and facilitates comparisons with the performance of others in the financial services industry. On page 27,

references are made regarding the managed auto portfolio which is reconciled as follows for the first quarter of 2008, fourth quarter of 2007 and

first quarter of 2007:

Managed Auto Portfolio

($ in millions)

1Q08

4Q07

1Q07

Managed auto

On-balance sheet

24,349

$   

21,790

18,772

Securitized

2,008

2,882

3,453

Total managed auto

26,357

24,672

22,225

NPAs

On-balance sheet

61

63

63

Securitized

6

7

7

Total NPAs

67

70

70

Net charge-offs

On-balance sheet

145

138

77

Securitized

6

7

4

Total net charge-offs

151

145

81

Average loans

On-balance sheet

23,605

21,614

18,596

Securitized

2,532

2,923

3,573

Total average loans

26,137

$   

24,537

22,169

NPAs

as a % of loans

On-balance sheet

0.25

%

0.29

0.33

Securitized

0.31

0.23

0.21

Total NPAs

as a % of loans

0.25

0.28

0.31

Net charge-offs as a % of average loans

On-balance sheet

2.46

2.55

1.65

Securitized

0.97

0.97

0.46

Total net charge-offs as a % of average loans

2.31

%

2.36

1.46

Managed consumer auto 30+ days past due loans

On-balance sheet

499

$        

667

317

Securitized

41

51

44

Total managed consumer auto 30+ days past due loans

540

$        

718

361

Managed consumer auto 30+ days past due loans as a % of loans

On-balance sheet

2.05

%

3.06

1.69

Securitized

2.02

1.77

1.27

Total managed consumer auto 30+ days past due loans as a % of loans

2.05

%

2.91

1.62