8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT PURSUANT

TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported) July 22, 2008

Wachovia Corporation

(Exact Name of Registrant as Specified in Its Charter)

North Carolina

(State or Other Jurisdiction of Incorporation)

1-10000	56-0898180
(Commission File Number)	(IRS Employer Identification No.)

One Wachovia Center Charlotte, North Carolina	28288-0013
(Address of Principal Executive Offices)	(Zip Code)

(704) 374-6565

(Registrant’s Telephone Number, Including Area Code)

(Former Name or Former Address, if Changed Since Last Report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Item 2.02. Results of Operations and Financial Condition.

On July 22, 2008, Wachovia Corporation (“Wachovia”) issued a news release announcing its financial results for the second quarter ended June 30, 2008 (the “Earnings News Release”). The Earnings News Release is attached as Exhibit (99)(a) to this report and is incorporated by reference into this Item 2.02. In connection with issuing the Earnings News Release, Wachovia also made available its Second Quarter Financial Highlights Presentation (the “Second Quarter Presentation”) and Second Quarter 2008 Quarterly Earnings Report (the “Quarterly Earnings Report”), which include certain additional historical and forward-looking financial information relating to Wachovia. Each of the Second Quarter Presentation, which is attached as Exhibit (99)(b) to this report, and the Quarterly Earnings Report, which is attached as Exhibit (99)(c) to this report, is incorporated by reference into this Item 2.02. On July 22, 2008, Wachovia intends to hold a conference call/webcast to discuss the Earnings News Release, the Second Quarter Presentation, the Quarterly Earnings Report and other matters relating to Wachovia.

The information in the preceding paragraph, including Exhibit (99)(a), Exhibit (99)(b) and Exhibit (99)(c), shall not be deemed to be “filed” for purposes of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), nor shall it be incorporated by reference in any filing under the Securities Act of 1933, as amended (the “Securities Act”).

Wachovia’s Consolidated Balance Sheets and Consolidated Statements of Income, included as part of the Earnings News Release, are attached as Exhibit (99)(d) to this report (the “Financial Statements”), and are incorporated by reference into this Item 2.02. Exhibit (99)(d) is “filed” for purposes of Section 18 of the Exchange Act, and, therefore, may be incorporated by reference in filings under the Securities Act.

Item 8.01. Other Events.

As set forth in the Earnings News Release, on July 22, 2008, Wachovia announced that it is reducing its quarterly common stock dividend to $0.05 per share from $0.375 per share. The $0.05 per share dividend will be payable on September 15, 2008 to Wachovia’s common stock shareholders of record as of August 29, 2008. The Earnings News Release is attached as Exhibit (99)(a) to this report and is incorporated by reference into this Item 8.01.

Item 9.01. Financial Statements and Exhibits.

(d)           Exhibits.

(99)(a)	The Earnings News Release (solely furnished and not filed for purposes of Item 2.02).
(99)(b)	The Second Quarter Presentation (solely furnished and not filed for purposes of Item 2.02).
(99)(c)	The Quarterly Earnings Report (solely furnished and not filed for purposes of Item 2.02).
(99)(d)	The Financial Statements (filed for purposes of Item 2.02).

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This Current Report on Form 8-K (including information included or incorporated by reference herein) may contain, among other things, certain forward-looking statements, 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 A.G. Edwards, Inc. (“A.G. Edwards”) and Wachovia 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 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 statements are based upon 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

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rate conditions) and the impact of such conditions on Wachovia’s brokerage and capital markets activities; (10) the timely development of competitive new products and services by Wachovia and the acceptance of these products and services by new and existing customers; (11) the willingness of customers to accept third party products marketed by Wachovia; (12) the willingness of customers to substitute competitors’ products and services for Wachovia’s products and services and vice versa; (13) the impact of changes in financial services’ laws and regulations (including laws concerning taxes, banking, securities and insurance); (14) technological changes; (15) changes in consumer spending and saving habits; (16) the effect of corporate restructurings, acquisitions and/or dispositions, including, without limitation, the A.G. Edwards Merger and the Golden West Merger, and the actual restructuring and other expenses related thereto, and the failure to achieve the expected revenue growth and/or expense savings from such corporate restructurings, acquisitions and/or dispositions; (17) the growth and profitability of Wachovia’s noninterest or fee income being less than expected; (18) unanticipated regulatory or judicial proceedings or rulings; (19) the impact of changes in accounting principles; (20) adverse changes in financial performance and/or condition of Wachovia’s borrowers which could impact repayment of such borrowers’ outstanding loans; (21) 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; and (22) Wachovia’s success at managing the risks involved in the foregoing.

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, 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, relating to the matters discussed in this Current Report on Form 8-K.

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

WACHOVIA CORPORATION
By:	/S/    THOMAS J. WURTZ
Name:	Thomas J. Wurtz
Title:	Senior Executive Vice President and Chief Financial Officer

Date: July 22, 2008

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Exhibit Index

Exhibit No.	Description
(99)(a)	The Earnings News Release.
(99)(b)	The Second Quarter Presentation.
(99)(c)	The Quarterly Earnings Report.
(99)(d)	The Financial Statements.

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EX-99.A

Exhibit (99)(a)

Press Release July 22, 2008

WACHOVIA DETAILS 2ND QUARTER LOSS; OUTLINES INITIATIVES TO PRESERVE AND

GENERATE CAPITAL, PROTECT STRONG LIQUIDITY AND REDUCE RISK

Actions Include Quarterly Common Stock Dividend Reduction to 5 Cents per Share

$8.9 Billion Net Loss Includes $6.1 Billion Noncash Goodwill Impairment and $4.2

Billion Credit Reserve Build; Strength Apparent in Underlying Results

CHARLOTTE, N.C. – Consistent with previously announced expectations, Wachovia today reported a net loss in the second quarter of 2008 of $8.9 billion, or a net loss of $4.20 per share, including a $6.1 billion noncash goodwill impairment charge in commercial-related subsegments reflecting declining market valuations and asset values. The goodwill impairment charge has no impact on Wachovia’s tangible capital levels, regulatory capital ratios or on liquidity.

Wachovia added $5.6 billion to its loan loss reserve to cover net charge-offs and increase the reserve by $4.2 billion.

Excluding goodwill impairment and other notable items that drove the quarter’s loss, Wachovia generated solid underlying growth on $7.5 billion in revenue. Revenue was driven by higher loans and deposits and strength in traditional banking fees, while strong fiduciary and asset management fees and brokerage commissions largely reflected the A.G. Edwards acquisition.

“These bottom-line results are disappointing and unacceptable,” said Lanty L. Smith, Wachovia’s board chairman, who served as interim chief executive officer beginning June 1. “While to some degree they reflect industry headwinds and weaker macroeconomic conditions, they also reflect performance for which we at Wachovia accept responsibility. Our company is facing up to these issues, is addressing the challenges head-on and has redirected near-term strategic priorities.”

Two immediate actions were announced: First, reducing the quarterly common stock dividend to five cents per share, which will conserve approximately $700 million of capital per quarter. The dividend is payable on September 15, 2008, to shareholders of record on August 29, 2008. The second immediate action is exiting the General Bank wholesale mortgage origination channel. Earlier the company ceased offering the negative amortization option for the Pick-a-Pay mortgage product and committed to work with customers to refinance existing Pick-a-Pay mortgages into conventional mortgage products. Approximately 1,000 Wachovia mortgage origination personnel are being redeployed in the company’s efforts to assist customers to refinance and restructure Pick-a-Pay mortgages. The objective is to assist customers in avoiding foreclosures and meaningfully reduce the company’s risks in the mortgage area.

Robert K. Steel, CEO and president said, “In the short term, the entire organization is focused on protecting, preserving and generating capital; reinforcing Wachovia’s strong liquidity position; and reducing risk.” Steel, who was named to his new post on July 9, further commented that, even as the company focuses on and addresses its credit-related challenges, Wachovia’s underlying businesses are performing well: “Wachovia has an exceptionally attractive franchise, footprint and set of businesses. Revenue in our general banking business grew 8 percent over last year and we maintained industry-leading customer satisfaction. The securities brokerage business continues its excellent performance, with increases in both the number and quality of brokers and with industry-leading margins. Our corporate and investment bank has reduced its exposure to further market disruption charges. We had a record quarter in our Wealth Management business.”

Wachovia outlined additional initiatives that are under way, ranging from reducing expense growth and capital expenditures, reducing earning assets, repositioning the certificate of deposit book and generating further growth in low-cost core deposits and other deposits. Also, the company is taking actions to reduce the number of credit-only commercial borrowers and to sell selected noncore assets.

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Steel summarized by saying: “Our balance sheet and liquidity position are strong, and we are committed to keeping them that way. The actions taken and initiatives under way are expected to generate or preserve more than $5 billion of capital. We ended the quarter with approximately $50 billion in regulatory capital and a tier 1 ratio of 8 percent, and we will be intensely focused on improving that level between now and the end of 2009.”

Steel said, “As we consider the company’s position, it is clearly prudent and necessary to further reduce our common dividend. While this is a difficult decision, it is the best course for our shareholders over the long term. I am confident of the commitment of the Wachovia team to manage successfully through this period as we continue to diligently serve our customers and communities. I am impressed by the work the Wachovia leadership group has undertaken, the clarity around the issues we face and the direction Wachovia is headed as we focus on being good stewards of the company.”

The second quarter 2008 net loss compared with earnings of $2.34 billion or $1.22 per share in the second quarter of 2007. Excluding goodwill impairment of $6.1 billion and net merger-related and restructuring expense of $128 million, results in the second quarter of 2008 were a net loss available to common stockholders of $2.67 billion, or a net loss of $1.27 per share. Results included the A.G. Edwards, Inc., acquisition from October 1, 2007.

Earnings Highlights

	Three Months Ended
	June 30, 2008					March 31, 2008				June 30, 2007
(In millions, except per share data)	Amount			EPS		Amount		EPS		Amount	EPS
Earnings
Net income (loss)	$	(8,662	)	(4.11	)	(664	)	(0.34	)	2,341	1.22
Dividends on preferred stock		(193	)	(0.09	)	(43	)	(0.02	)	—	—
Net income (loss) available to common stockholders	$	(8,855	)	(4.20	)	(707	)	(0.36	)	2,341	1.22
Net goodwill impairment		6,056		2.87		—		—		—	—
Net merger-related and restructuring expenses		128		0.06		123		0.06		20	0.01
Earnings (loss) excluding goodwill impairment, and merger-related and restructuring expenses	$	(2,671	)	(1.27	)	(584	)	(0.30	)	2,361	1.23
Financial ratios
Return on average common stockholders’ equity		(49.07	) %			(3.81	)			13.54
Net interest margin (a)		2.58	(d)			2.92				2.96
Fee and other income as % of total revenue (a)		42.15				36.62				48.58
Overhead efficiency ratio (a)		163.58	%			71.76				56.02
Capital adequacy (b)
Tier 1 capital ratio		8.0	%			7.4				7.5
Total capital ratio		12.7				12.1				11.5
Leverage ratio		6.6	%			6.2				6.2
Asset quality
Allowance for loan losses as % of nonaccrual and restructured loans		95	%			84				174
Allowance for loan losses as % of loans, net		2.20				1.37				0.79
Allowance for credit losses as % of loans, net (c)		2.24				1.41				0.83
Net charge-offs as % of average loans, net		1.10				0.66				0.14
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		2.41	%			1.70				0.49

(a) Tax-equivalent.

(b) The second quarter of 2008 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.

(d) Includes the SILO charge of $975 million pre-tax; without that charge, the net interest margin would have been 3.15%.

The pre-tax loss stemmed from:

• The $6.1 billion in noncash goodwill impairment reflecting declining market valuations and the resulting effect on commercial, corporate lending and investment banking subsegments. The goodwill impairment charge has no impact on Wachovia’s tangible capital levels or

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WACHOVIA REPORTS 2ND QUARTER LOSS AMID TOUGH ENVIRONMENT/page 3

regulatory capital ratios, because goodwill is deducted when computing those ratios.

• A $5.6 billion loan loss provision, which increased reserves by $4.2 billion, including $3.3 billion for the payment option mortgage portfolio;

• A $975 million noncash charge announced previously related to the tax treatment of certain leasing transactions widely referred to as “sale in, lease out” or SILO transactions;

• $936 million in market disruption-related losses;

• $590 million in legal reserves primarily related to previously disclosed matters; and

• $391 million in losses related to planned discretionary securities sales.

Wachovia Corporation

	Three Months Ended
(In millions)	June 30, 2008			March 31, 2008		June 30, 2007
Net interest income (Tax-equivalent)	$	4,344		4,805		4,487
Fee and other income		3,165		2,777		4,240
Total revenue (Tax-equivalent)		7,509		7,582		8,727
Provision for credit losses		5,567		2,831		179
Noninterest expense		12,284		5,441		4,890
Income (loss) from continuing operations before income taxes (benefits) (Tax-equivalent)		(10,439	)	(845	)	3,519
Income taxes (benefits) (Tax-equivalent)		(1,777	)	(181	)	1,178
Net income (loss) available to common stockholders		(8,855	)	(707	)	2,341
Average loans, net		476,734		465,936		421,257
Average core deposits	$	390,670		394,513		378,496

Other key trends in the second quarter of 2008 compared with the second quarter of 2007 included:

• A decline in fee and other income due to net market disruption-related valuation losses, which overshadowed strength in traditional banking. Fiduciary and asset management fees and brokerage commissions reflected the A.G. Edwards acquisition.

• A net interest margin of 2.58 percent, or 3.15 percent excluding the effect of the SILO charge. The SILO charge diminished net interest income, offset by growth in average commercial loans, up 25 percent, and average consumer loans, up 6 percent, as well as solid core deposit growth, up 3 percent. Average loan growth included the impact of the first quarter 2008 transfer of $6.9 billion of commercial and consumer loans to the loan portfolio from held-for-sale as well as strength in commercial, commercial real estate and traditional conforming mortgage loans. Deposit growth was led by strength in IRAs and money market accounts.

• An increase in noninterest expense largely reflecting the impact of A.G. Edwards, as well as growth in credit-related sundry expense and legal reserves. A renewed expense reduction initiative is under way throughout the company.

• Provision for credit losses of $5.6 billion, which included a reserve build of $4.2 billion. The provision largely reflected current and anticipated severe deterioration in the residential housing market, particularly in specific markets in California and Florida. Net charge-offs were $1.3 billion, or an annualized 1.10 percent of average net loans. Total nonperforming assets including loans held for sale were $12.0 billion, or 2.41 percent of loans, foreclosed properties and loans held for sale, largely reflecting increases in consumer real estate-related nonperforming assets due to the effects of the weakened housing industry.

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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, goodwill impairment charges, other intangible amortization, excess provision and discontinued operations. Segment earnings are the basis on which Wachovia manages and allocates capital to its business segments. In accordance with Wachovia’s business segment methodology, goodwill impairment of $6.1 billion and provision expense in excess of charge-offs and other credit losses, which amounted to $4.2 billion in the second quarter of 2008, are not allocated to 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
(In millions)	June 30, 2008			March 31, 2008	June 30, 2007
Net interest income (Tax-equivalent)	$	3,671		3,445	3,372
Fee and other income		1,000		980	935
Total revenue (Tax-equivalent)		4,728		4,480	4,363
Provision for credit losses		919		569	154
Noninterest expense		2,050		2,038	1,922
Segment earnings	$	1,117		1,189	1,453
Cash overhead efficiency ratio (Tax-equivalent)		43.35	%	45.50	44.05
Average loans, net	$	319,574		311,556	291,607
Average core deposits		290,381		297,171	290,455
Economic capital, average	$	16,786		12,693	10,821

General Bank

The General Bank includes retail, small business and commercial customers. The second quarter of 2008 compared with the second quarter of 2007 included:

• Earnings of $1.1 billion, down $336 million, driven by rising credit costs and related expenses, primarily in the mortgage business, which overshadowed continued strong sales momentum elsewhere as reflected in total revenue of $4.7 billion, up 8 percent.

• Average loan growth of 10 percent, with double digit growth in wholesale and retail businesses. Mortgage lending through our largely branch-originated mortgage and home equity channels was up 6 percent, primarily reflecting a decline in prepayments, and home equity lending was up 5 percent. Auto loan originations rose 12 percent.

• Relatively stable average core deposits.

• Growth in net new retail checking accounts slowed, but still increased by 263,000 in the second quarter of 2008 compared with an increase of 314,000 in the second quarter of 2007.

• 305,000 new retail checking accounts were tied to the Way2Save campaign; this product launched in mid-January 2008.

• 7 percent growth in fee and other income, with strength in service charges, interchange income and mortgage banking fee income. Strong interchange income reflected a 14 percent increase in debit/credit card volume from the second quarter of 2007.

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WACHOVIA REPORTS 2ND QUARTER LOSS AMID TOUGH ENVIRONMENT/page 5

• Noninterest expense up 7 percent due to growth in credit-related sundry expense and severance expense, as well as continued strategic investment in de novo branch activity and Western expansion. During the second quarter of 2008, 23 de novo branches were opened and 38 branches were consolidated. As a result of performance initiatives, operating leverage continued to improve, which enabled continued strategic investment.

• A $765 million increase in the provision for credit losses to $919 million, largely reflecting higher net charge-offs in the Pick-a-Pay portfolio.

Wealth Management Highlights

	Three Months Ended
(In millions)	June 30, 2008			March 31, 2008	June 30, 2007
Net interest income (Tax-equivalent)	$	202		182	182
Fee and other income		207		211	202
Total revenue (Tax-equivalent)		412		398	387
Provision for credit losses		8		5	2
Noninterest expense		253		246	244
Segment earnings	$	98		92	90
Cash overhead efficiency ratio (Tax-equivalent)		61.05	%	61.98	62.80
Average loans, net	$	23,151		22,365	21,056
Average core deposits		17,559		17,906	17,466
Economic capital, average	$	731		699	612

Wealth Management

Wealth Management includes private banking, personal trust, investment advisory services, charitable services, financial planning and insurance brokerage. The second quarter of 2008 compared with the second quarter of 2007 included:

• 9 percent earnings growth to $98 million on 6 percent revenue growth in challenging markets.

• 11 percent growth in net interest income on 10 percent loan growth and improved deposit spreads.

• 16 percent growth in fiduciary and asset management fees as a pricing initiative implemented in the third quarter of 2007 and other growth offset declines in equity valuations. Insurance commissions declined largely due to a soft market for insurance premiums and nonstrategic insurance account dispositions.

• A 4 percent increase in noninterest expense driven by continued investment in private banking and Western expansion.

• A 3 percent decline in assets under management to $77.3 billion largely due to market depreciation.

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Corporate and Investment Bank Highlights

	Three Months Ended
(In millions)	June 30, 2008			March 31, 2008		June 30, 2007
Net interest income (Tax-equivalent)	$	1,124		1,028		773
Fee and other income		657		(158	)	1,522
Total revenue (Tax-equivalent)		1,729		820		2,245
Provision for credit losses		438		197		(2	)
Noninterest expense		960		747		1,020
Segment earnings (loss)	$	209		(78	)	779
Cash overhead efficiency ratio (Tax-equivalent)		55.60	%	91.00		45.43
Average loans, net	$	106,642		101,046		76,744
Average core deposits		31,682		33,623		36,713
Economic capital, average	$	13,816		13,233		8,850

Corporate and Investment Bank

The Corporate and Investment Bank includes corporate lending, investment banking, and treasury and international trade finance. Unless otherwise noted, second quarter 2008 results are compared with the second quarter of 2007. These results included:

• Earnings of $209 million, down $570 million, due to continued net valuation losses related to disruption in the capital markets, and increased provision for credit losses.

• Investment bank origination fees down 4 percent year over year, although these fees rose 16 percent from the first quarter of 2008.

• Market share of 4.3 percent at June 30, 2008, up from 3.8 percent at June 30, 2007.

• Market valuation losses of $565 million, including a recovery on certain losses on leveraged finance commitments, compared with market valuation losses of $1.6 billion in the first quarter of 2008. Market valuation losses, net of applicable hedges, were:

• $238 million in subprime residential asset-backed collateralized debt obligations and other related exposures, compared with $339 million in first quarter 2008;

• $209 million in commercial mortgage structured products, compared with $521 million in first quarter 2008;

• $68 million in consumer mortgage structured products, compared with $251 million in first quarter 2008;

• $102 million gain in leveraged finance net of fees, compared with a net $309 million loss in first quarter 2008; and

• $152 million in non-subprime collateralized debt obligations and other structured products, compared with $144 million in first quarter 2008.

• A 45 percent increase in net interest income, which reflected 39 percent growth in average loans including the first quarter 2008 transfer into the loan portfolio at fair value of certain loans originally slated for disposition, as well as loan growth in the corporate lending and global financial institutions businesses.

• Principal investing revenue of $115 million, down from $300 million in the second quarter of 2007 on lower gains in the public and private direct investment portfolios.

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• A 6 percent decline in noninterest expense primarily due to lower variable compensation and reduced headcount in investment banking.

• Provision of $438 million largely reflecting residential-related commercial real estate and other corporate lending losses.

Capital Management Highlights

	Three Months Ended
(In millions)	June 30, 2008			March 31, 2008	June 30, 2007
Net interest income (Tax-equivalent)	$	308		281	260
Fee and other income		1,995		2,191	1,536
Total revenue (Tax-equivalent)		2,295		2,462	1,785
Provision for credit losses		—		—	—
Noninterest expense		1,827		1,855	1,294
Segment earnings	$	297		386	312
Cash overhead efficiency ratio (Tax-equivalent)		79.61	%	75.34	72.47
Average loans, net	$	2,881		2,562	1,663
Average core deposits		48,647		43,084	31,221
Economic capital, average	$	2,105		2,144	1,348

Capital Management

Capital Management includes retail brokerage services and asset management. The second quarter of 2008 compared with the second quarter of 2007 included:

• Earnings of $297 million on 29 percent revenue growth, with net market disruption-related losses of $118 million, including $89 million of securities impairments relating to the liquidation of an Evergreen fund.

• An 18 percent increase in net interest income driven by retail brokerage deposit growth of $17.5 billion primarily due to the A.G. Edwards acquisition as well as solid growth since the acquisition, partially offset by spread compression.

• Continued solid momentum in retail brokerage managed account fees and the impact of the A.G. Edwards acquisition.

• 41 percent growth in noninterest expense largely due to the effect of A.G. Edwards, as well as higher legal expense.

Total assets under management of $245.9 billion at June 30, 2008, decreased 10 percent from December 31, 2007, driven by net outflows of $17.6 billion as well as $11.2 billion in lower market valuations.

***

Wachovia Corporation (NYSE:WB) is one of the nation’s largest diversified financial services companies, with assets of $812.4 billion and market capitalization of $33.5 billion at June 30, 2008. 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 3,300 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 $1.1 trillion in client assets through 14,600 financial advisors 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.

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WACHOVIA REPORTS 2ND QUARTER LOSS AMID TOUGH ENVIRONMENT/page 8

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 July 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 2 and on page 11 under the captions “Earnings Excluding Merger-Related and Restructuring Expenses, Goodwill Impairment and Discontinued Operations” and “Earnings Excluding Merger-Related and Restructuring Expenses, Goodwill Impairment, Other Intangible Amortization and Discontinued Operations”, and which are reconciled to GAAP financial measures on pages 23 through 25. 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, goodwill impairment and discontinued operations 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 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 Bob Steel and CFO Tom Wurtz will review Wachovia’s second quarter 2008 results in a conference call and audio web cast beginning at 10:00 a.m. Eastern Daylight Saving Time today. This review may include a discussion of certain non-GAAP financial measures. Supplemental materials relating to second 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.

Web cast Instructions: To gain access to the web cast, which will be “listen-only,” go to Wachovia.com/investor and click on the link “Wachovia Second Quarter Earnings Audio Web cast.” In order to listen to the web cast, 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, July 22, by 1:00 p.m. EDT and continuing through 5 p.m. EDT Friday, October 17. Replay telephone number is 706-645-9291; access code: 49418191.

Investors seeking further information should contact the Investor Relations team: Alice Lehman at 704-374-4139 or Ellen Taylor at 704-383-1381. Media seeking further information should contact the Corporate Media Relations team: Mary Eshet at 704-383-7777 or Christy Phillips-Brown at 704-383-8178.

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PAGE 9

WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL TABLES

TABLE OF CONTENTS

	PAGE
Financial Highlights—Five Quarters Ended June 30, 2008	10
Other Financial Data—Five Quarters Ended June 30, 2008	11
Consolidated Statements of Income—Five Quarters Ended June 30, 2008	12
Consolidated Statements of Income—Six Months Ended June 30, 2008 and 2007	13
Business Segments—Three Months Ended June 30, 2008 and March 31, 2008	14
Business Segments—Three Months Ended June 30, 2007	15
Loans—On-Balance Sheet, and Managed and Servicing Portfolios—Five Quarters Ended June 30, 2008	16
Allowance for Credit Losses—Five Quarters Ended June 30, 2008	17
Nonperforming Assets—Five Quarters Ended June 30, 2008	18
Consolidated Balance Sheets—Five Quarters Ended June 30, 2008	19
Net Interest Income Summaries—Five Quarters Ended June 30, 2008	20 - 21
Net Interest Income Summaries—Six Months Ended June 30, 2008 and 2007	22
Reconciliation of Certain Non-GAAP Financial Measures—Five Quarters Ended June 30, 2008	23 - 25

PAGE 10

WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

	2008					2007
(Dollars in millions, except per share data)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
EARNINGS SUMMARY
Net interest income (GAAP)	$	4,290		4,752		4,630		4,551		4,449
Tax-equivalent adjustment		54		53		44		33		38
Net interest income (Tax-equivalent)		4,344		4,805		4,674		4,584		4,487
Fee and other income		3,165		2,777		2,744		2,933		4,240
Total revenue (Tax-equivalent)		7,509		7,582		7,418		7,517		8,727
Provision for credit losses		5,567		2,831		1,497		408		179
Other noninterest expense		5,876		5,097		5,488		4,397		4,755
Merger-related and restructuring expenses		251		241		187		36		32
Goodwill impairment		6,060		—		—		—		—
Other intangible amortization		97		103		111		92		103
Total noninterest expense		12,284		5,441		5,786		4,525		4,890
Minority interest in income of consolidated subsidiaries		97		155		107		189		139
Income (loss) from continuing operations before income taxes (benefits) (Tax-equivalent)		(10,439	)	(845	)	28		2,395		3,519
Income taxes (benefits)		(1,831	)	(234	)	(209	)	656		1,140
Tax-equivalent adjustment		54		53		44		33		38
Income (loss) from continuing operations		(8,662	)	(664	)	193		1,706		2,341
Discontinued operations, net of income taxes		—		—		(142	)	(88	)	—
Net income (loss)		(8,662	)	(664	)	51		1,618		2,341
Dividends on preferred stock		193		43		—		—		—
Net income (loss) available to common stockholders	$	(8,855	)	(707	)	51		1,618		2,341
Diluted earnings per common share (a)	$	(4.20	)	(0.36	)	0.03		0.85		1.22
Return on average common stockholders’ equity		(49.07	)%	(3.81	)	0.28		9.19		13.54
Return on average assets		(4.37	)	(0.34	)	0.03		0.88		1.33
Overhead efficiency ratio		163.58	%	71.76		78.00		60.20		56.02
Operating leverage	$	(6,916	)	509		(1,359	)	(847	)	189
ASSET QUALITY
Allowance for loan losses as % of loans, net		2.20	%	1.37		0.98		0.78		0.79
Allowance for loan losses as % of nonperforming assets		90		78		84		115		157
Allowance for credit losses as % of loans, net		2.24		1.41		1.02		0.82		0.83
Net charge-offs as % of average loans, net		1.10		0.66		0.41		0.19		0.14
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		2.41	%	1.70		1.14		0.66		0.49
CAPITAL ADEQUACY (b)
Tier I capital ratio		8.0	%	7.4		7.4		7.1		7.5
Total capital ratio		12.7		12.1		11.8		10.8		11.5
Leverage ratio		6.6	%	6.2		6.1		6.1		6.2
OTHER DATA
Average basic common shares (In millions)		2,111		1,963		1,959		1,885		1,891
Average diluted common shares (In millions)		2,119		1,977		1,983		1,910		1,919
Actual common shares (In millions) (c)		2,159		1,992		1,980		1,901		1,903
Dividends paid per common share	$	0.38		0.64		0.64		0.64		0.56
Dividend payout ratio on common shares		(8.93	) %	(177.78	)	2133.33		75.29		45.90
Book value per common share (c)	$	30.37		36.24		37.66		36.90		36.40
Common stock price		15.53		27.00		38.03		50.15		51.25
Market capitalization (c)	$	33,527		53,782		75,302		95,326		97,530
Common stock price to book value (c)		51	%	75		101		136		141
FTE employees		119,952		120,378		121,890		109,724		110,493
Total financial centers/brokerage offices		4,820		4,850		4,894		4,167		4,135
ATMs		5,277		5,308		5,139		5,123		5,099

(a) Calculated using average basic common shares in 2008.

(b) The second quarter of 2008 is based on estimates.

(c) Includes restricted stock for which the holder receives dividends and has full voting rights.

PAGE 11

WACHOVIA CORPORATION AND SUBSIDIARIES

OTHER FINANCIAL DATA

(Unaudited)

	2008					2007
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, GOODWILL IMPAIRMENT AND DISCONTINUED OPERATIONS (a) (b)
Return on average common stockholders’ equity		(14.56	)%	(3.14	)	1.62		9.81		13.66
Return on average assets		(1.25	)	(0.28	)	0.16		0.94		1.34
Overhead efficiency ratio		79.55		68.58		75.48		59.73		55.65
Overhead efficiency ratio excluding brokerage		80.33	%	65.48		74.54		56.82		52.04
Operating leverage	$	(847	)	563		(1,208	)	(843	)	210
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, GOODWILL IMPAIRMENT, OTHER INTANGIBLE AMORTIZATION AND DISCONTINUED OPERATIONS (a) (b) (c)
Dividend payout ratio on common shares		(30.49	)%	(246.15	)	355.56		68.09		44.09
Return on average tangible common stockholders’ equity		(36.42	)	(7.07	)	5.05		23.88		33.57
Return on average tangible assets		(1.29	)	(0.26	)	0.20		1.03		1.47
Overhead efficiency ratio		78.26		67.22		73.97		58.51		54.47
Overhead efficiency ratio excluding brokerage		78.55	%	63.59		72.43		55.32		50.61
Operating leverage	$	(853	)	554		(1,187	)	(855	)	197
OTHER FINANCIAL DATA
Net interest margin		2.58	%	2.92		2.88		2.92		2.96
Fee and other income as % of total revenue		42.15		36.62		36.99		39.02		48.58
Effective income tax rate (d)		17.46		26.02		122.05		27.33		32.78
Effective tax rate (Tax-equivalent) (d) (e)		17.03	%	21.38		127.17		28.38		33.51
AVERAGE BALANCE SHEET DATA
Commercial loans, net	$	206,204		198,578		188,164		174,672		165,512
Consumer loans, net		270,530		267,358		261,641		255,129		255,745
Loans, net		476,734		465,936		449,805		429,801		421,257
Earning assets		675,089		659,033		650,140		628,773		605,978
Total assets		796,437		783,593		763,487		729,004		704,773
Core deposits		390,670		394,513		390,043		379,009		378,496
Total deposits		435,548		443,353		437,566		416,107		408,418
Interest-bearing liabilities		619,044		611,099		599,130		574,399		547,669
Stockholders’ equity	$	81,740		78,747		73,986		69,857		69,317
PERIOD-END BALANCE SHEET DATA
Commercial loans, net	$	216,620		211,700		198,566		189,545		175,369
Consumer loans, net		271,578		268,782		263,388		259,661		253,751
Loans, net		488,198		480,482		461,954		449,206		429,120
Goodwill and other intangible assets
Goodwill		36,993		43,068		43,122		38,848		38,766
Deposit base		531		573		619		670		727
Customer relationships		1,321		1,375		1,410		620		651
Tradename		90		90		90		90		90
Total assets		812,433		808,575		782,896		754,168		715,428
Core deposits		400,387		398,562		397,405		377,865		378,188
Total deposits		447,790		444,964		449,129		421,937		410,030
Stockholders’ equity	$	75,379		77,992		76,872		70,140		69,266

(a) These financial measures are calculated by excluding from GAAP net income (loss) presented on page 10, $128 million, $123 million, $108 million, $22 million and $20 million in the second and first quarters of 2008 and the fourth, third and second quarters of 2007, respectively, of after-tax net merger-related and restructuring expenses, $6.1 billion in the second quarter of 2008 of after-tax goodwill impairment, and $142 million and $88 million after tax in the fourth and third quarters of 2007, respectively, of discontinued operations.

(b) See page 10 for the most directly comparable GAAP financial measure and pages 23 through 25 for a more detailed reconciliation.

(c) These financial measures are calculated by excluding from GAAP net income (loss) presented on page 10, $66 million, $64 million, $65 million, $59 million and $66 million in the second and first quarters of 2008 and the fourth, third and second quarters of 2007, respectively, of deposit base and other intangible amortization.

(d) The fourth and third quarters of 2007 include 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)

	2008					2007
(In millions, except per share data)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
INTEREST INCOME
Interest and fees on loans	$	6,187		7,577		7,980		7,937		7,723
Interest and dividends on securities		1,530		1,496		1,616		1,529		1,474
Trading account interest		522		571		557		566		506
Other interest income		407		535		757		799		647
Total interest income		8,646		10,179		10,910		10,831		10,350
INTEREST EXPENSE
Interest on deposits		2,176		2,941		3,433		3,334		3,180
Interest on short-term borrowings		418		523		673		801		706
Interest on long-term debt		1,762		1,963		2,174		2,145		2,015
Total interest expense		4,356		5,427		6,280		6,280		5,901
Net interest income		4,290		4,752		4,630		4,551		4,449
Provision for credit losses		5,567		2,831		1,497		408		179
Net interest income after provision for credit losses		(1,277	)	1,921		3,133		4,143		4,270
FEE AND OTHER INCOME
Service charges		709		676		716		689		667
Other banking fees		518		498		497		471		449
Commissions		910		914		970		600		649
Fiduciary and asset management fees		1,355		1,439		1,436		1,029		1,015
Advisory, underwriting and other investment banking fees		280		261		249		393		454
Trading account profits (losses)		(510	)	(308	)	(524	)	(301	)	195
Principal investing		136		446		41		372		298
Securities gains (losses)		(808	)	(205	)	(320	)	(34	)	23
Other income		575		(944	)	(321	)	(286	)	490
Total fee and other income		3,165		2,777		2,744		2,933		4,240
NONINTEREST EXPENSE
Salaries and employee benefits		3,435		3,260		3,468		2,628		3,122
Occupancy		377		379		375		325		331
Equipment		317		323		334		283		309
Marketing		95		97		80		74		78
Communications and supplies		184		186		191		176		178
Professional and consulting fees		218		196		271		194		205
Goodwill impairment		6,060		—		—		—		—
Other intangible amortization		97		103		111		92		103
Merger-related and restructuring expenses		251		241		187		36		32
Sundry expense		1,250		656		769		717		532
Total noninterest expense		12,284		5,441		5,786		4,525		4,890
Minority interest in income of consolidated subsidiaries		97		155		107		189		139
Income (loss) from continuing operations before income taxes (benefits)		(10,493	)	(898	)	(16	)	2,362		3,481
Income taxes (benefits)		(1,831	)	(234	)	(209	)	656		1,140
Income (loss) from continuing operations		(8,662	)	(664	)	193		1,706		2,341
Discontinued operations, net of income taxes		—		—		(142	)	(88	)	—
Net income (loss)		(8,662	)	(664	)	51		1,618		2,341
Dividends on preferred stock		193		43		—		—		—
Net income (loss) available to common stockholders	$	(8,855	)	(707	)	51		1,618		2,341
PER COMMON SHARE DATA (after preferred stock dividends)
Basic earnings
Income (loss) from continuing operations	$	(4.20	)	(0.36	)	0.10		0.91		1.24
Net income (loss) available to common stockholders		(4.20	)	(0.36	)	0.03		0.86		1.24
Diluted earnings (a)
Income (loss) from continuing operations		(4.20	)	(0.36	)	0.10		0.90		1.22
Net income (loss) available to common stockholders		(4.20	)	(0.36	)	0.03		0.85		1.22
Cash dividends	$	0.38		0.64		0.64		0.64		0.56
AVERAGE COMMON SHARES
Basic		2,111		1,963		1,959		1,885		1,891
Diluted		2,119		1,977		1,983		1,910		1,919

(a) Calculated using average basic common shares in 2008.

PAGE 13

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Six Months Ended June 30,
(In millions, except per share data)	2008			2007
INTEREST INCOME
Interest and fees on loans	$	13,764		15,341
Interest and dividends on securities		3,026		2,952
Trading account interest		1,093		939
Other interest income		942		1,258
Total interest income		18,825		20,490
INTEREST EXPENSE
Interest on deposits		5,117		6,194
Interest on short-term borrowings		941		1,375
Interest on long-term debt		3,725		3,972
Total interest expense		9,783		11,541
Net interest income		9,042		8,949
Provision for credit losses		8,398		356
Net interest income after provision for credit losses		644		8,593
FEE AND OTHER INCOME
Service charges		1,385		1,281
Other banking fees		1,016		865
Commissions		1,824		1,308
Fiduciary and asset management fees		2,794		1,968
Advisory, underwriting and other investment banking fees		541		861
Trading account profits (losses)		(818	)	323
Principal investing		582		346
Securities gains (losses)		(1,013	)	76
Other income		(369	)	946
Total fee and other income		5,942		7,974
NONINTEREST EXPENSE
Salaries and employee benefits		6,695		6,094
Occupancy		756		643
Equipment		640		616
Marketing		192		140
Communications and supplies		370		351
Professional and consulting fees		414		382
Goodwill impairment		6,060		—
Other intangible amortization		200		221
Merger-related and restructuring expenses		492		42
Sundry expense		1,906		1,022
Total noninterest expense		17,725		9,511
Minority interest in income of consolidated subsidiaries		252		275
Income (loss) before income taxes		(11,391	)	6,781
Income taxes (benefits)		(2,065	)	2,138
Net income (loss)		(9,326	)	4,643
Dividends on preferred stock		236		—
Net income (loss) available to common stockholders	$	(9,562	)	4,643
PER COMMON SHARE DATA (after preferred stock dividends)
Basic earnings
Net income (loss) available to common stockholders	$	(4.69	)	2.45
Diluted earnings (a)
Net income (loss) available to common stockholders		(4.69	)	2.42
Cash dividends	$	1.02		1.12
AVERAGE COMMON SHARES
Basic		2,037		1,892
Diluted		2,048		1,922

(a) Calculated using average basic common shares in 2008.

PAGE 14

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended June 30, 2008
(In millions)	General Bank		Wealth Management	Corporate and Investment Bank		Capital Management		Parent		Goodwill Impairment, Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	3,671	202	1,124		308		(961	)	(54	)	4,290
Fee and other income		1,000	207	657		1,995		(694	)	—		3,165
Intersegment revenue		57	3	(52	)	(8	)	—		—		—
Total revenue (a)		4,728	412	1,729		2,295		(1,655	)	(54	)	7,455
Provision for credit losses		919	8	438		—		4,202		—		5,567
Noninterest expense		2,050	253	960		1,827		883		6,311		12,284
Minority interest		—	—	—		—		141		(44	)	97
Income taxes (benefits)		632	53	103		170		(2,706	)	(83	)	(1,831	)
Tax-equivalent adjustment		10	—	19		1		24		(54	)	—
Net income (loss)		1,117	98	209		297		(4,199	)	(6,184	)	(8,662	)
Dividends on preferred stock		—	—	—		—		193		—		193
Net income (loss) available to common stockholders	$	1,117	98	209		297		(4,392	)	(6,184	)	(8,855	)
	Three Months Ended March 31, 2008
(In millions)	General Bank		Wealth Management	Corporate and Investment Bank		Capital Management		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	3,445	182	1,028		281		(131	)	(53	)	4,752
Fee and other income		980	211	(158	)	2,191		(447	)	—		2,777
Intersegment revenue		55	5	(50	)	(10	)	—		—		—
Total revenue (a)		4,480	398	820		2,462		(578	)	(53	)	7,529
Provision for credit losses		569	5	197		—		2,060		—		2,831
Noninterest expense		2,038	246	747		1,855		314		241		5,441
Minority interest		—	—	—		—		198		(43	)	155
Income taxes (benefits)		673	55	(67	)	220		(1,083	)	(32	)	(234	)
Tax-equivalent adjustment		11	—	21		1		20		(53	)	—
Net income (loss)		1,189	92	(78	)	386		(2,087	)	(166	)	(664	)
Dividends on preferred stock		—	—	—		—		43		—		43
Net income (loss) available to common stockholders	$	1,189	92	(78	)	386		(2,130	)	(166	)	(707	)

PAGE 15

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended June 30, 2007
(In millions)	General Bank		Wealth Management	Corporate and Investment Bank		Capital Management		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	3,372	182	773		260		(100	)	(38	)	4,449
Fee and other income		935	202	1,522		1,536		45		—		4,240
Intersegment revenue		56	3	(50	)	(11	)	2		—		—
Total revenue (a)		4,363	387	2,245		1,785		(53	)	(38	)	8,689
Provision for credit losses		154	2	(2	)	—		25		—		179
Noninterest expense		1,922	244	1,020		1,294		378		32		4,890
Minority interest		—	—	—		—		139		—		139
Income taxes (benefits)		824	51	437		179		(339	)	(12	)	1,140
Tax-equivalent adjustment		10	—	11		—		17		(38	)	—
Net income (loss)	$	1,453	90	779		312		(273	)	(20	)	2,341

(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)

	2008					2007
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
ON-BALANCE SHEET LOAN PORTFOLIO
COMMERCIAL
Commercial, financial and agricultural	$	122,628		119,193		112,509		109,269		102,397
Real estate—construction and other		18,629		18,597		18,543		18,167		17,449
Real estate—mortgage		27,191		26,370		23,846		21,514		20,448
Lease financing		24,605		23,637		23,913		23,966		24,083
Foreign		35,168		33,616		29,540		26,471		20,959
Total commercial		228,221		221,413		208,351		199,387		185,336
CONSUMER
Real estate secured		230,520		230,197		227,719		225,355		220,293
Student loans		9,945		9,324		8,149		7,742		6,757
Installment loans		29,261		27,437		25,635		24,763		25,017
Total consumer		269,726		266,958		261,503		257,860		252,067
Total loans		497,947		488,371		469,854		457,247		437,403
Unearned income		(9,749	)	(7,889	)	(7,900	)	(8,041	)	(8,283	)
Loans, net (On-balance sheet)	$	488,198		480,482		461,954		449,206		429,120
MANAGED PORTFOLIO (a) (b)
COMMERCIAL
On-balance sheet loan portfolio	$	228,221		221,413		208,351		199,387		185,336
Securitized loans—off-balance sheet		105		120		131		142		170
Loans held for sale		2,224		3,342		9,414		13,905		11,573
Total commercial		230,550		224,875		217,896		213,434		197,079
CONSUMER
Real estate secured
On-balance sheet loan portfolio		230,520		230,197		227,719		225,355		220,293
Securitized loans—off-balance sheet		6,337		6,845		7,230		7,625		8,112
Securitized loans included in securities		14,918		11,683		10,755		5,963		6,091
Loans held for sale		3,415		5,960		4,816		3,583		4,079
Total real estate secured		255,190		254,685		250,520		242,526		238,575
Student
On-balance sheet loan portfolio		9,945		9,324		8,149		7,742		6,757
Securitized loans—off-balance sheet		2,721		2,772		2,811		2,856		2,905
Securitized loans included in securities		52		52		52		52		52
Loans held for sale		—		—		—		1,968		2,046
Total student		12,718		12,148		11,012		12,618		11,760
Installment
On-balance sheet loan portfolio		29,261		27,437		25,635		24,763		25,017
Securitized loans—off-balance sheet		1,630		1,968		2,263		2,572		3,105
Securitized loans included in securities		28		39		47		55		116
Loans held for sale		2,791		2,127		2,542		1,975		35
Total installment		33,710		31,571		30,487		29,365		28,273
Total consumer		301,618		298,404		292,019		284,509		278,608
Total managed portfolio	$	532,168		523,279		509,915		497,943		475,687
SERVICING PORTFOLIO (b) (c)
Commercial	$	351,277		354,624		353,464		337,721		298,374
Consumer	$	29,100		27,415		27,523		28,015		26,341

(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) Certain amounts presented in periods prior to the second quarter of 2008 have been reclassified to conform to the presentation in the second quarter of 2008.

(c) 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)

	2008					2007
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
ALLOWANCE FOR CREDIT LOSSES (a)
Balance, beginning of period	$	6,767		4,717		3,691		3,552		3,533
Provision for credit losses		5,504		2,834		1,467		381		168
Provision for credit losses relating to loans transferred to loans held for sale or sold		51		7		6		3		4
Provision for credit losses for unfunded lending commitments		12		(10	)	24		24		7
LOAN LOSSES
Commercial, financial and agricultural		(254	)	(171	)	(67	)	(41	)	(39	)
Commercial real estate—construction and mortgage		(216	)	(81	)	(117	)	(5	)	(4	)
Total commercial		(470	)	(252	)	(184	)	(46	)	(43	)
Real estate secured		(700	)	(351	)	(156	)	(59	)	(40	)
Student loans		(3	)	(3	)	(4	)	(5	)	(2	)
Installment and other loans (b)		(230	)	(242	)	(225	)	(168	)	(138	)
Total consumer		(933	)	(596	)	(385	)	(232	)	(180	)
Total loan losses		(1,403	)	(848	)	(569	)	(278	)	(223	)
LOAN RECOVERIES
Commercial, financial and agricultural		15		14		22		9		15
Commercial real estate—construction and mortgage		—		1		—		3		—
Total commercial		15		15		22		12		15
Real estate secured		18		10		9		12		11
Student loans		1		1		2		3		—
Installment and other loans (b)		60		57		75		45		47
Total consumer		79		68		86		60		58
Total loan recoveries		94		83		108		72		73
Net charge-offs		(1,309	)	(765	)	(461	)	(206	)	(150	)
Allowance relating to loans acquired, transferred to loans held for sale or sold		(69	)	(16	)	(10	)	(63	)	(10	)
Balance, end of period	$	10,956		6,767		4,717		3,691		3,552
ALLOWANCE FOR CREDIT LOSSES
Allowance for loan losses	$	10,744		6,567		4,507		3,505		3,390
Reserve for unfunded lending commitments		212		200		210		186		162
Total allowance for credit losses	$	10,956		6,767		4,717		3,691		3,552
ALLOWANCE FOR LOAN LOSSES
as % of loans, net		2.20	%	1.37		0.98		0.78		0.79
as % of nonaccrual and restructured loans (c)		95		84		90		129		174
as % of nonperforming assets (c)		90		78		84		115		157
ALLOWANCE FOR CREDIT LOSSES
as % of loans, net		2.24	%	1.41		1.02		0.82		0.83
NET CHARGE-OFFS AS % OF AVERAGE LOANS, NET (d)
Commercial, financial and agricultural		0.60	%	0.41		0.12		0.10		0.07
Commercial real estate—construction and mortgage		1.89		0.73		1.12		0.02		0.04
Total commercial		0.88		0.48		0.34		0.08		0.07
Real estate secured		1.18		0.59		0.26		0.08		0.05
Student loans		0.07		0.08		0.10		0.14		0.07
Installment and other loans (b)		2.36		2.76		2.35		1.99		1.47
Total consumer		1.26		0.79		0.46		0.27		0.19
Total as % of average loans, net		1.10	%	0.66		0.41		0.19		0.14
CONSUMER REAL ESTATE SECURED NET CHARGE-OFFS
First lien	$	(592	)	(291	)	(122	)	(32	)	(17	)
Second lien		(90	)	(50	)	(25	)	(15	)	(12	)
Total consumer real estate secured net charge-offs	$	(682	)	(341	)	(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) Annualized.

PAGE 18

WACHOVIA CORPORATION AND SUBSIDIARIES

NONPERFORMING ASSETS

(Unaudited)

	2008				2007
(In millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
NONPERFORMING ASSETS
Nonaccrual loans
Commercial
Commercial, financial and agricultural	$	1,229		908	602	354	318
Commercial real estate - construction and mortgage		2,203		1,750	1,059	289	161
Total commercial		3,432		2,658	1,661	643	479
Consumer
Real estate secured
First lien		7,430		5,015	3,234	1,986	1,380
Second lien		147		75	58	41	44
Installment and other loans (a)		40		40	42	45	42
Total consumer		7,617		5,130	3,334	2,072	1,466
Total nonaccrual loans		11,049		7,788	4,995	2,715	1,945
Troubled debt restructurings (b)		248		48	—	—	—
Foreclosed properties		631		530	389	334	207
Total nonperforming assets	$	11,928		8,366	5,384	3,049	2,152
as % of loans, net, and foreclosed properties (c)		2.44	%	1.74	1.16	0.68	0.50
Nonperforming assets included in loans held for sale
Commercial	$	56		—	—	—	—
Consumer		7		5	62	50	37
Total nonaccrual loans		63		5	62	50	37
Foreclosed properties		—		—	—	9	5
Total nonperforming assets included in loans held for sale		63		5	62	59	42
Nonperforming assets included in loans and in loans held for sale	$	11,991		8,371	5,446	3,108	2,194
as % of loans, net, foreclosed properties and loans held for sale (d)		2.41	%	1.70	1.14	0.66	0.49
PAST DUE LOANS 90 DAYS AND OVER, AND NONACCRUAL LOANS (c)
Accruing loans past due 90 days and over	$	1,181		866	708	590	562
Nonaccrual loans		11,049		7,788	4,995	2,715	1,945
Total past due loans 90 days and over, and nonaccrual loans	$	12,230		8,654	5,703	3,305	2,507
Commercial as % of loans, net		1.73	%	1.31	0.89	0.38	0.31
Consumer as % of loans, net		3.12	%	2.19	1.49	1.00	0.78

(a) Principally auto loans; nonaccrual status does not apply to student loans.

(b) Troubled debt restructurings were not significant prior to the first quarter of 2008.

(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)

	2008					2007
(In millions, except per share data)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
ASSETS
Cash and due from banks	$	15,127		14,703		15,124		12,681		12,065
Interest-bearing bank balances		10,289		3,236		3,057		4,449		2,726
Federal funds sold and securities purchased under resale agreements		21,923		10,644		15,449		11,995		11,511
Total cash and cash equivalents		47,339		28,583		33,630		29,125		26,302
Trading account assets		62,589		72,592		55,882		54,835		51,540
Securities		113,461		114,183		115,037		111,827		106,184
Loans, net of unearned income		488,198		480,482		461,954		449,206		429,120
Allowance for loan losses		(10,744	)	(6,567	)	(4,507	)	(3,505	)	(3,390	)
Loans, net		477,454		473,915		457,447		445,701		425,730
Loans held for sale		8,430		11,429		16,772		21,431		17,733
Premises and equipment		6,667		6,733		6,605		6,002		6,080
Due from customers on acceptances		1,302		1,109		1,418		1,295		831
Goodwill		36,993		43,068		43,122		38,848		38,766
Other intangible assets		1,942		2,038		2,119		1,380		1,468
Other assets		56,256		54,925		50,864		43,724		40,794
Total assets	$	812,433		808,575		782,896		754,168		715,428
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		63,393		60,951		60,893		56,825		62,112
Interest-bearing deposits		384,397		384,013		388,236		365,112		347,918
Total deposits		447,790		444,964		449,129		421,937		410,030
Short-term borrowings		55,448		57,857		50,393		62,714		52,715
Bank acceptances outstanding		1,307		1,118		1,424		1,303		840
Trading account liabilities		26,305		28,887		21,585		17,771		19,319
Other liabilities		18,656		19,036		19,151		18,424		18,080
Long-term debt		184,401		175,653		161,007		158,584		142,047
Total liabilities		733,907		727,515		702,689		680,733		643,031
Minority interest in net assets of consolidated subsidiaries		3,147		3,068		3,335		3,295		3,131
STOCKHOLDERS’ EQUITY
Preferred stock, Class A, 40 million shares, no par value; 10 million shares, no par value; none issued		—		—		—		—		—
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at June 30, 2008		—		—		—		—		—
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 depositary shares issued and outstanding at June 30, 2008		2,300		2,300		2,300		—		—
Non-Cumulative Perpetual Class A Preferred Stock, Series K, $1,000 liquidation preference per share, 3.5 million shares issued and outstanding at June 30, 2008		3,500		3,500		—		—		—
Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L, $1,000 liquidation preference per share, 4.025 million shares issued and outstanding at June 30, 2008		4,025		—		—		—		—
Common stock, $3.33-1/3 par value, authorized 3 billion shares, outstanding 2.136 billion shares at June 30, 2008		7,121		6,551		6,534		6,283		6,289
Paid-in capital		59,797		56,367		56,149		51,938		51,905
Retained earnings		1,786		11,449		13,456		14,670		14,335
Accumulated other comprehensive income, net		(3,150	)	(2,175	)	(1,567	)	(2,751	)	(3,263	)
Total stockholders’ equity		75,379		77,992		76,872		70,140		69,266
Total liabilities and stockholders’ equity	$	812,433		808,575		782,896		754,168		715,428

PAGE 20

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	SECOND QUARTER 2008							FIRST QUARTER 2008
(In millions)	Average Balances		Interest Income/ Expense			Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
ASSETS
Interest-bearing bank balances	$	4,980		39		3.11	%	$	4,253		51	4.85	%
Federal funds sold and securities purchased under resale agreements		13,075		81		2.51			11,865		103	3.49
Trading account assets		43,575		541		4.97			44,655		589	5.28
Securities		116,504		1,603		5.51			110,401		1,545	5.60
Loans
Commercial
Commercial, financial and agricultural		120,693		1,493		4.98			115,377		1,671	5.82
Real estate—construction and other		18,849		204		4.35			18,634		251	5.42
Real estate—mortgage		26,730		338		5.08			25,291		374	5.95
Lease financing (a)		6,713		(857	)	(51.02	)		7,167		140	7.79
Foreign		33,219		360		4.34			32,109		389	4.86
Total commercial		206,204		1,538		3.01			198,578		2,825	5.72
Consumer
Real estate secured		231,754		3,715		6.42			231,392		3,926	6.79
Student loans		9,887		108		4.41			9,155		113	4.96
Installment loans		28,889		686		9.55			26,811		659	9.88
Total consumer		270,530		4,509		6.68			267,358		4,698	7.04
Total loans		476,734		6,047		5.09			465,936		7,523	6.48
Loans held for sale		9,141		141		6.17			11,592		223	7.71
Other earning assets		11,080		136		4.94			10,331		146	5.69
Total earning assets excluding derivatives		675,089		8,588		5.10			659,033		10,180	6.19
Risk management derivatives (b)		—		112		0.07			—		52	0.04
Total earning assets including derivatives		675,089		8,700		5.17			659,033		10,232	6.23
Cash and due from banks		11,472							11,645
Other assets		109,876							112,915
Total assets	$	796,437						$	783,593
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		86,317		137		0.64			86,452		236	1.10
Money market accounts		132,792		504		1.53			128,074		747	2.34
Other consumer time		113,579		1,145		4.05			123,655		1,437	4.68
Foreign		25,913		191		2.97			26,197		231	3.55
Other time		18,965		181		3.83			22,643		265	4.71
Total interest-bearing deposits		377,566		2,158		2.30			387,021		2,916	3.03
Federal funds purchased and securities sold under repurchase      agreements		43,288		274		2.54			35,956		308	3.45
Commercial paper		5,186		20		1.61			5,509		38	2.74
Securities sold short		6,243		53		3.42			6,919		62	3.63
Other short-term borrowings		9,288		33		1.34			10,154		45	1.77
Long-term debt		177,473		1,737		3.93			165,540		1,961	4.75
Total interest-bearing liabilities excluding derivatives		619,044		4,275		2.77			611,099		5,330	3.51
Risk management derivatives (b)		—		81		0.06			—		97	0.06
Total interest-bearing liabilities including derivatives		619,044		4,356		2.83			611,099		5,427	3.57
Noninterest-bearing deposits		57,982							56,332
Other liabilities		37,671							37,415
Stockholders’ equity		81,740							78,747
Total liabilities and stockholders’ equity	$	796,437						$	783,593
Interest income and rate earned—including derivatives			$	8,700		5.17	%			$	10,232	6.23	%
Interest expense and equivalent rate paid—including derivatives				4,356		2.59					5,427	3.31
Net interest income and margin—including derivatives			$	4,344		2.58	%			$	4,805	2.92	%

(a) Includes the effect of the $975 million leverage lease recalculation in the second quarter of 2008.

(b) 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 2007						THIRD QUARTER 2007						SECOND QUARTER 2007
(In millions)	Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
ASSETS
Interest-bearing bank balances	$	5,083		64	5.05	%	$	6,459		93	5.68	%	$	3,384		50	6.00	%
Federal funds sold and securities purchased under resale agreements		12,901		155	4.77			14,206		194	5.42			12,110		158	5.25
Trading account assets		37,694		569	6.04			38,737		575	5.93			35,165		519	5.90
Securities		115,436		1,625	5.62			111,424		1,522	5.46			108,433		1,467	5.41
Loans
Commercial
Commercial, financial and agricultural		111,500		1,908	6.79			106,263		1,927	7.19			101,012		1,805	7.16
Real estate—construction and other		18,435		318	6.85			17,795		344	7.66			17,334		329	7.62
Real estate—mortgage		22,973		426	7.36			20,883		406	7.71			20,175		378	7.53
Lease financing (a)		7,374		145	7.82			7,523		146	7.80			7,759		150	7.74
Foreign		27,882		380	5.42			22,208		308	5.53			19,232		265	5.51
Total commercial		188,164		3,177	6.70			174,672		3,131	7.12			165,512		2,927	7.09
Consumer
Real estate secured		227,893		4,042	7.08			223,356		4,070	7.28			222,096		4,042	7.28
Student loans		8,073		126	6.19			7,299		122	6.61			8,850		141	6.42
Installment loans		25,675		651	10.04			24,474		614	9.96			24,799		609	9.84
Total consumer		261,641		4,819	7.35			255,129		4,806	7.52			255,745		4,792	7.50
Total loans		449,805		7,996	7.08			429,801		7,937	7.35			421,257		7,719	7.34
Loans held for sale		18,998		360	7.53			20,209		363	7.14			17,644		285	6.47
Other earning assets		10,223		166	6.48			7,937		138	6.91			7,985		144	7.23
Total earning assets excluding derivatives		650,140		10,935	6.70			628,773		10,822	6.86			605,978		10,342	6.84
Risk management derivatives (b)		—		19	0.01			—		42	0.02			—		46	0.03
Total earning assets including derivatives		650,140		10,954	6.71			628,773		10,864	6.88			605,978		10,388	6.87
Cash and due from banks		12,028						11,134						11,533
Other assets		101,319						89,097						87,262
Total assets	$	763,487					$	729,004					$	704,773
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		83,370		345	1.64			81,851		357	1.73			83,977		367	1.75
Money market accounts		121,717		949	3.09			116,404		980	3.34			111,562		976	3.51
Other consumer time		127,061		1,557	4.86			122,474		1,507	4.88			120,684		1,455	4.84
Foreign		27,354		306	4.44			23,322		292	4.97			21,871		270	4.96
Other time		20,169		263	5.16			13,776		187	5.40			8,051		107	5.30
Total interest-bearing deposits		379,671		3,420	3.57			357,827		3,323	3.68			346,145		3,175	3.68
Federal funds purchased and securities sold under repurchase agreements		36,386		413	4.50			44,334		556	4.98			38,031		473	4.98
Commercial paper		7,272		78	4.27			5,799		65	4.42			5,143		60	4.67
Securities sold short		6,728		61	3.62			7,420		70	3.74			7,158		67	3.75
Other short-term borrowings		10,369		58	2.24			7,793		55	2.74			7,688		52	2.77
Long-term debt		158,704		2,129	5.34			151,226		2,067	5.44			143,504		1,923	5.37
Total interest-bearing liabilities excluding derivatives		599,130		6,159	4.08			574,399		6,136	4.24			547,669		5,750	4.21
Risk management derivatives (b)		—		121	0.08			—		144	0.10			—		151	0.11
Total interest-bearing liabilities including derivatives		599,130		6,280	4.16			574,399		6,280	4.34			547,669		5,901	4.32
Noninterest-bearing deposits		57,895						58,280						62,273
Other liabilities		32,476						26,468						25,514
Stockholders’ equity		73,986						69,857						69,317
Total liabilities and stockholders’ equity	$	763,487					$	729,004					$	704,773
Interest income and rate earned—including derivatives			$	10,954	6.71	%			$	10,864	6.88	%			$	10,388	6.87	%
Interest expense and equivalent rate paid—including derivatives				6,280	3.83					6,280	3.96					5,901	3.91
Net interest income and margin—including derivatives			$	4,674	2.88	%			$	4,584	2.92	%			$	4,487	2.96	%

PAGE 22

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	SIX MONTHS ENDED June 30, 2008							SIX MONTHS ENDED June 30, 2007
(In millions)	Average Balances		Interest Income/ Expense			Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
ASSETS
Interest-bearing bank balances	$	4,616		90		3.91	%	$	2,459		80	6.55	%
Federal funds sold and securities purchased under resale agreements		12,470		184		2.98			13,111		335	5.16
Trading account assets		44,115		1,130		5.13			32,438		961	5.93
Securities		113,452		3,148		5.55			108,253		2,928	5.42
Loans
Commercial
Commercial, financial and agricultural		118,036		3,164		5.39			99,719		3,541	7.16
Real estate—construction and other		18,741		455		4.88			16,924		642	7.65
Real estate—mortgage		26,010		712		5.51			20,203		758	7.57
Lease financing (a)		6,940		(717	)	(20.65	)		7,745		300	7.74
Foreign		32,664		749		4.60			16,832		461	5.50
Total commercial		202,391		4,363		4.34			161,423		5,702	7.12
Consumer
Real estate secured		231,573		7,641		6.61			223,992		8,190	7.32
Student loans		9,521		221		4.68			8,688		277	6.45
Installment loans		27,850		1,345		9.71			24,172		1,175	9.80
Total consumer		268,944		9,207		6.86			256,852		9,642	7.53
Total loans		471,335		13,570		5.78			418,275		15,344	7.37
Loans held for sale		10,367		364		7.03			17,199		540	6.32
Other earning assets		10,706		282		5.30			8,119		283	7.02
Total earning assets excluding derivatives		667,061		18,768		5.64			599,854		20,471	6.85
Risk management derivatives (b)		—		164		0.05			—		94	0.03
Total earning assets including derivatives		667,061		18,932		5.69			599,854		20,565	6.88
Cash and due from banks		11,558							11,894
Other assets		111,396							86,191
Total assets	$	790,015						$	697,939
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		86,385		373		0.87			84,111		740	1.77
Money market accounts		130,433		1,251		1.93			109,684		1,893	3.48
Other consumer time		118,616		2,582		4.38			118,485		2,824	4.81
Foreign		26,055		422		3.26			21,340		519	4.90
Other time		20,804		446		4.31			8,539		226	5.34
Total interest-bearing deposits		382,293		5,074		2.67			342,159		6,202	3.66
Federal funds purchased and securities sold under repurchase agreements		39,622		582		2.95			36,595		903	4.97
Commercial paper		5,348		58		2.19			5,032		117	4.70
Securities sold short		6,581		115		3.53			7,929		150	3.81
Other short-term borrowings		9,722		78		1.57			7,295		96	2.66
Long-term debt		171,506		3,698		4.33			142,746		3,803	5.36
Total interest-bearing liabilities excluding derivatives		615,072		9,605		3.14			541,756		11,271	4.19
Risk management derivatives (b)		—		178		0.06			—		270	0.10
Total interest-bearing liabilities including derivatives		615,072		9,783		3.20			541,756		11,541	4.29
Noninterest-bearing deposits		57,157							61,628
Other liabilities		37,542							25,237
Stockholders’ equity		80,244							69,318
Total liabilities and stockholders’ equity	$	790,015						$	697,939
Interest income and rate earned—including derivatives			$	18,932		5.69	%			$	20,565	6.88	%
Interest expense and equivalent rate paid—including derivatives				9,783		2.95					11,541	3.87
Net interest income and margin—including derivatives			$	9,149		2.74	%			$	9,024	3.01	%

(a) Includes the effect of the $975 million leverage lease recalculation in the second quarter of 2008.

(b) 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)

		2008					2007
(In millions, except per share data)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
INCOME (LOSS) FROM CONTINUING OPERATIONS
Net income (loss) (GAAP)	A	$	(8,662	)	(664	)	51		1,618		2,341
Discontinued operations, net of income taxes (GAAP)			—		—		142		88		—
Income (loss) from continuing operations (GAAP)			(8,662	)	(664	)	193		1,706		2,341
Merger-related and restructuring expenses (GAAP)			128		123		108		22		20
Goodwill impairment (GAAP)			6,056		—		—		—		—
Earnings excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	B		(2,478	)	(541	)	301		1,728		2,361
Other intangible amortization (GAAP)			66		64		65		59		66
Earnings excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations	C	$	(2,412	)	(477	)	366		1,787		2,427
INCOME (LOSS) AVAILABLE TO COMMON STOCKHOLDERS
Net income (loss) available to common stockholders (GAAP)	D	$	(8,855	)	(707	)	51		1,618		2,341
Discontinued operations, net of income taxes (GAAP)			—		—		142		88		—
Income (loss) from continuing operations available to common stockholders (GAAP)			(8,855	)	(707	)	193		1,706		2,341
Merger-related and restructuring expenses (GAAP)			128		123		108		22		20
Goodwill impairment (GAAP)			6,056		—		—		—		—
Earnings excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	E		(2,671	)	(584	)	301		1,728		2,361
Other intangible amortization (GAAP)			66		64		65		59		66
Net income (loss) available to common stockholders, excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations	F	$	(2,605	)	(520	)	366		1,787		2,427
RETURN ON AVERAGE COMMON STOCKHOLDERS’ EQUITY
Average common stockholders’ equity (GAAP)	G	$	72,579		74,697		73,599		69,857		69,317
Merger-related and restructuring expenses (GAAP)			191		110		242		124		14
Goodwill impairment (GAAP)			998		—		—		—		—
Discontinued operations (GAAP)			—		—		(142	)	(88	)	—
Average common stockholders’ equity, excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	H		73,768		74,807		73,699		69,893		69,331
Average intangible assets (GAAP)	I		(44,998	)	(45,211	)	(44,941	)	(40,198	)	(40,328	)
Average tangible common stockholders’ equity, excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	J	$	28,770		29,596		28,758		29,695		29,003
Return on average common stockholders’ equity
GAAP	D/G		(49.07	)%	(3.81	)	0.28		9.19		13.54
Excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	E/H		(14.56	)	(3.14	)	1.62		9.81		13.66
Return on average tangible common stockholders’ equity
GAAP	D/G+I		(129.14	)	(9.64	)	0.71		21.64		32.38
Excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations	F/J		(36.42	)%	(7.07	)	5.05		23.88		33.57

PAGE 24

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2008					2007
(In millions, except per share data)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
RETURN ON AVERAGE ASSETS
Average assets (GAAP)	K	$	796,437		783,593		763,487		729,004		704,773
Average intangible assets (GAAP)			(44,998	)	(45,211	)	(44,941	)	(40,198	)	(40,328	)
Average tangible assets (GAAP)	L		751,439		738,382		718,546		688,806		664,445
Average assets (GAAP)			796,437		783,593		763,487		729,004		704,773
Merger-related and restructuring expenses (GAAP)			191		110		242		124		14
Goodwill impairment (GAAP)			998		—		—		—		—
Discontinued operations (GAAP)			—		—		(142	)	(88	)	—
Average assets, excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	M		797,626		783,703		763,587		729,040		704,787
Average intangible assets (GAAP)			(44,998	)	(45,211	)	(44,941	)	(40,198	)	(40,328	)
Average tangible assets, excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	N	$	752,628		738,492		718,646		688,842		664,459
Return on average assets
GAAP	A/K		(4.37	) %	(0.34	)	0.03		0.88		1.33
Excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	B/M		(1.25	)	(0.28	)	0.16		0.94		1.34
Return on average tangible assets
GAAP	A/L		(4.64	)	(0.36	)	0.03		0.93		1.41
Excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations	C/N		(1.29	) %	(0.26	)	0.20		1.03		1.47
OVERHEAD EFFICIENCY RATIOS
Noninterest expense (GAAP)	O	$	12,284		5,441		5,786		4,525		4,890
Merger-related and restructuring expenses (GAAP)			(251	)	(241	)	(187	)	(36	)	(32	)
Goodwill impairment (GAAP)			(6,060	)	—		—		—		—
Noninterest expense excluding merger-related and restructuring expenses and goodwill impairment	P		5,973		5,200		5,599		4,489		4,858
Other intangible amortization (GAAP)			(97	)	(103	)	(111	)	(92	)	(103	)
Noninterest expense excluding merger-related and restructuring expenses, goodwill impairment and other intangible amortization	Q	$	5,876		5,097		5,488		4,397		4,755
Net interest income (GAAP)		$	4,290		4,752		4,630		4,551		4,449
Tax-equivalent adjustment			54		53		44		33		38
Net interest income (Tax-equivalent)			4,344		4,805		4,674		4,584		4,487
Fee and other income (GAAP)			3,165		2,777		2,744		2,933		4,240
Total	R	$	7,509		7,582		7,418		7,517		8,727
Retail Brokerage Services, excluding insurance
Noninterest expense (GAAP)	S	$	1,582		1,628		1,718		1,033		1,070
Net interest income (GAAP)		$	223		260		305		255		248
Tax-equivalent adjustment			1		1		1		—		—
Net interest income (Tax-equivalent)			224		261		306		255		248
Fee and other income (GAAP)			1,819		1,866		1,907		1,180		1,202
Total	T	$	2,043		2,127		2,213		1,435		1,450
Overhead efficiency ratios GAAP	O/R		163.58	%	71.76		78.00		60.20		56.02
Excluding merger-related and restructuring expenses, and goodwill impairment	P/R		79.55		68.58		75.48		59.73		55.65
Excluding merger-related and restructuring expenses, goodwill impairment and brokerage	P-S/R-T		80.33		65.48		74.54		56.82		52.04
Excluding merger-related and restructuring expenses, goodwill impairment and other intangible amortization	Q/R		78.26		67.22		73.97		58.51		54.47
Excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and brokerage	Q-S/R-T		78.55	%	63.59		72.43		55.32		50.61

PAGE 25

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2008					2007
(In millions, except per share data)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
OPERATING LEVERAGE
Operating leverage (GAAP)		$	(6,916	)	509		(1,359	)	(847	)	189
Merger-related and restructuring expenses (GAAP)			9		54		151		4		21
Goodwill impairment (GAAP)			6,060		—		—		—		—
Operating leverage, excluding merger-related and restructuring expenses, and goodwill impairment			(847	)	563		(1,208	)	(843	)	210
Other intangible amortization (GAAP)			(6	)	(9	)	21		(12	)	(13	)
Operating leverage, excluding merger-related and restructuring expenses, goodwill impairment and other intangible amortization		$	(853	)	554		(1,187	)	(855	)	197
DIVIDEND PAYOUT RATIOS ON COMMON SHARES
Dividends paid per common share	U	$	0.38		0.64		0.64		0.64		0.56
Diluted earnings per common share (GAAP) (a)	V	$	(4.20	)	(0.36	)	0.03		0.85		1.22
Merger-related and restructuring expenses (GAAP)			0.06		0.06		0.05		—		0.01
Goodwill impairment (GAAP)			2.87		—		—		—		—
Other intangible amortization (GAAP)			0.04		0.04		0.03		0.04		0.04
Discontinued operations (GAAP)			—		—		0.07		0.05		—
Diluted earnings per common share, excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations (a)	W	$	(1.23	)	(0.26	)	0.18		0.94		1.27
Dividend payout ratios
GAAP	U/V		(8.93	)%	(177.78	)	2,133.33		75.29		45.90
Excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations	U/W		(30.49	)%	(246.15	)	355.56		68.09		44.09

* The letters included in the columns are provided to show how the various ratios presented in the tables on pages 23 through 25 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/K) and annualized where appropriate.

(a) Calculated using average basic common shares in 2008.

EX-99.B

Wachovia Corporation

2Q08 Financial Highlights

July 22, 2008

Exhibit (99)(b)

1

2Q08 Quarterly highlights

GAAP loss of $8.9 billion, EPS of ($4.20)

(a)

-

Loss reflects $5.6 billion pre-tax loan loss provision, including $4.2 billion of reserve build, and $9.0 billion pre-tax of notable

items which include:

Goodwill impairment

(b)

, SILO charge

(c)

, market disruption-related losses, legal reserves and losses relating to planned

discretionary securities sales

Operating

loss

of

$2.7

billion,

EPS

of

($1.27)

excluding

$6.1

billion

goodwill

impairment

(b)

Capital enhancing strategies expected to protect/preserve/generate $5+ billion in Tier 1 capital

by YE 2009

-

Dividend

reduction

of

87%

to

quarterly

level

of

$0.05

per

share

-

New mortgage strategies expected to reduce Pick-a-Pay portfolio

-

Aggressive balance sheet management including non-core asset sales

-

Expense reduction efforts expected to reduce expense growth by $1.5 billion annually by YE 2009

Strong underlying business fundamentals

General Bank

Excellent new retail and commercial customer acquisition rates

Low-cost core deposits up 2% QoQ

Average loan growth up 3% QoQ

Record customer satisfaction

Capital Management

Record broker headcount

Deposits up 13% QoQ

Since AGE merger, client assets down only 7%

despite 16% decline in S&P 500

(a)

(a) EPS calculated on net loss available to common stockholders of $8.9 billion, reflecting preferred dividends of $193 million.

(b) Please see pages 50

–

51 for additional information.

(c) SILOs

(sale-in, lease-out) are a broad class of cross-border leveraged lease transactions which includes service contracts and qualified technological equipment leases.

Wealth Management

Record segment earnings

Client acquisition up 16% QoQ

Fiduciary fees up 16% YoY

Record low efficiency ratio

Corporate and Investment Bank

Investment banking origination fees up 16% QoQ

Market distribution-related exposure down 52% QoQ

2

2Q08 GAAP loss of $8.9 billion

Operating loss of $2.7 billion in the quarter

$8.9 billion loss includes noncash, capital neutral

$6.1 billion goodwill impairment

NII down 10% QoQ driven by the effect of the $975

million SILO charge; up 11% before this charge

-

Margin down 34 bps QoQ to 2.58%; up 23 bps before

the effect of the SILO charge

-

Earning assets and low-cost core deposits up

2% QoQ

Fees up 14% QoQ

-

Strength in service charges, other banking fees, advisory

and underwriting, and other income

-

Market disruption losses declined by $1.4 billion on

reduced exposures

Expenses up 14% QoQ; up 3% excluding legal

reserves and non-merger severance

(c)

-

3% increase driven by higher incentives based on higher

revenues and annual merit increases

(a) Tax-equivalent. 

(b) Pre-tax

goodwill

impairment

of

$6,060

million;

after-tax

$6,056

million.

Difference

relates

to

small

amount

of

goodwill

that

is

deductible

for

tax

purposes. Please see pages

50-51 for additional information.

(c) Please see page 53 for additional information.

vs

vs

($ in millions, except per share data)

2Q08

1Q08

2Q07

Net interest income

(a)

$

4,344

(10)

%

(3)

Fee and other income

3,165

14

(25)

Total

revenue

(a)

7,509

(1)

(14)

Provision

5,567

97

-

Expense

6,224

14

27

Goodwill

impairment

(b)

6,060

-

-

Minority interest

97

(37)

(30)

Pre-tax

income

(loss)

(a)

(10,439)

-

-

Income taxes (benefits)

(a)

(1,777)

-

-

Net income (loss)

(8,662)

-

-

Preferred dividends

193

-

-

Net income (loss) available to

common stockholders

(8,855)

-

-

Net merger-related

128

4

-

After-tax

goodwill

impairment

(b)

6,056

-

-

Operating income (loss)

$

(2,671)

-

%

-

Avg

basic shares

2,111

8

%

12

EPS

(available

to

common

stockholders)

$

(4.20)

-

-

EPS operating

$

(1.27)

-

%

-

Net interest margin

2.58

%

(34)

bps

(38)

Net interest margin              

(excluding SILO charge)

3.15

%

23

bps

19

Return on avg

equity

(49.07)

-

-

Overhead efficiency ratio

163.58

%

-

bps

-

3

Core strength masked by significant charges

Pre-tax pre-provision results include notable items

$4.9 billion pre-tax pre-provision loss

Fees up 3% QoQ excluding notable items (shown

in

table)

(d)

Expenses up 4% QoQ excluding higher legal

reserves relating primarily to previously

disclosed

items

(d)

Goodwill impairment reflects disconnect between

market value of the company and book value

-

Write-downs in commercial-related sub-segments

reflect declining market valuations and asset values

Market disruption losses include $372 million

relating to ineffectiveness of economic hedges,

which were largely unwound during the quarter

(a) Tax-equivalent.

(b) Pre-tax goodwill impairment of $6,060 million, after-tax $6,056 million. Difference relates to small amount of goodwill that is deductible for tax purposes. Please see

pages 50-51 for additional information.

(c) Write-downs

to

fair

value

on

certain

securities

where

our

intent

is

to

sell.

(d) Please see page 53 for additional information.

Income Statement

($ in millions)

2Q08

1Q08

Line Item

Pre-tax GAAP loss

(a)

$

(10,439)

(845)

Provision for credit losses

5,567

2,831

Provision for credit

Pre-tax pre-provision

earnings (loss)

(a)

(4,872)

1,986

Notable items:

Goodwill impairment

(b)

6,060

-

Goodwill impairment

SILO charge

975

-

Net interest income

Market disruption-related

losses

936

2,287

See page 21 for details

Legal reserves

590

-

Sundry expense

Discretionary planned

securities sales

(c)

391

-

Securities gains (losses)

FAS 157 / 159 adoption net gains

-

(481)

Principal investing (466),

Other income (15)

Visa IPO

-

(225)

Securities gains (losses)

Total notable items

8,952

1,581

Pre-tax pre-provision results

excluding notable items

(a)

$

4,080

3,567

4

NII driven by modest loan growth

Focus on balance sheet discipline

Loans up 2% QoQ

Pick-a-Pay mortgage up 1% QoQ

-

Ceased originations of negative amortization loans

as of 6/30/08

-

Exiting

General Bank wholesale channel

Traditional mortgage down 2% QoQ

-

Origination strategy focused on marketable products

Other consumer up 8% QoQ largely on

$1.6 billion growth in auto and student

C & I up 4% QoQ on strength in middle-market,

structured products and large corporate

-

Results reflect $748 million effect of foreign commercial

real estate and commercial loans transferred from

held-for-sale in 1Q08

-

Line of credit utilization remained relatively stable

CRE up 4% QoQ reflecting slower pre-pays,

increased fundings, modest income producing

growth and $319 million effect of 1Q08 transfers

from held-for-sale

Current outlook:

-

Expect loans to decline over remainder of 2008 driven

by capital usage discipline

Average Loans

vs

vs

($ in billions)

2Q08

1Q08

2Q07

Pick-a-Pay mortgage

$

122.2

1

%

4

Traditional mortgage

51.8

(2)

12

Home equity

57.8

-

(1)

Other consumer

38.7

8

15

Total consumer

270.5

1

6

Commercial and industrial

160.6

4

25

Commercial real estate

45.6

4

22

Total commercial

206.2

4

25

Total loans, net

$

476.7

2

%

13

5

Core deposits relatively stable

-

Retail CDs down 8% QoQ largely on planned portfolio

repositioning

2% QoQ low-cost core deposit growth driven by

strong money market and checking results

-

Retail brokerage deposits increased $5.7 billion QoQ

-

Strong commercial results on solid treasury

services sales

-

Net new checking account sales of 263,000

-

Leveraging Western and de novo expansion

-

Way2Save product sales

Results continued to exceed expectations with 44% of

accounts generating a new checking account; $236

million in new checking balances

-

Launching retail brokerage CD strategy

June 22

nd

launched new CD campaign

-

$4.7 billion/week in new CDs vs. approximately $800

million/week in new CDs during 7 weeks prior to launch

-

52% of CDs sold to checking account customers

-

36% sold to new customers

-

Average rate paid on CD portfolio continued to decline

from 3/31/08

NII driven by strong low-cost core deposit growth and

improved spreads

CD

deposit

growth

of

$11.5

billion

since

6/30/08

(a)

Average Deposits

vs

vs

($ in billions)

2Q08

1Q08

2Q07

DDA

$

58.0

3

%

(7)

Interest checking

52.8

2

4

Savings

33.5

5

-

Money market

132.8

4

19

Low-cost core

277.1

2

7

Retail CDs

113.6

(8)

(6)

  Core deposits

390.7

(1)

3

Other deposits

44.8

(8)

50

Total deposits

$

435.5

(2)

%

7

Consumer CD Balances

Consumer CD/IRA spot balances.

(a)

As

of

7/18

/

08.

Campaign launch

June 22

$120.9

$115.5

$112.2

$113.9

$118.5

4.38%

4.17%

3.97%

3.73%

3.72%

($ in billions)

Average rate paid on CDs

$125.3

3.74%

3/31/08

4/28/08

5/26/08

6/30/08

7/8/08

7/18/08

6

Income statement data

2Q08 segment highlights

Diversified business mix and balance sheet

Excludes Parent results. Segment earnings are after-tax earnings before merger-related and restructuring expense, intangible amortization, goodwill impairment and reserve build.

Core business fundamentals remain strong

General

Wealth

Corporate and

Capital

($ in millions)

Bank

Management

Investment Bank

Management

Net interest income (Tax-equivalent)

$

3,671

202

1,124

308

Fee and other income

1,057

210

605

1,987

Total revenue

(Tax-equivalent)

4,728

412

1,729

2,295

Provision for credit losses

919

8

438

-

Noninterest expense

2,050

253

960

1,827

Segment earnings

$

1,117

98

209

297

Balance sheet data

Average loans, net

$

319,574

23,151

106,642

2,881

Average core deposits

$

290,381

17,559

31,682

48,647

(a)

(a) Includes intersegment revenue.

7

General Bank strength affected by housing market decline

Earnings up 6% QoQ excluding mortgage results

vs

vs

($ in millions)

2Q08

1Q08

2Q07

Net interest income

$

3,671

7

%

9

Service charges

597

4

6

Interchange income

209

12

20

Mortgage banking fees

77

12

15

All other fees/income

117

(24)

(9)

  Fee and other income

1,000

2

7

    Total revenue

4,728

6

8

Provision

919

62

497

Expense

2,050

1

7

Segment earnings

$

1,117

(6)

%

(23)

Strong NII growth of 7% QoQ reflects improving

spreads and balance sheet growth despite rising

NPAs

Fees up 2% QoQ reflecting strong growth

in most categories

-

Strong service charge and interchange income growth

on higher volumes

Card purchase volume up 10%

-

Mortgage banking fees up on higher originations of

marketable loans and growth in servicing income

42% of originations vs. 33% in 1Q08

Provision expense up 62% driven by higher losses

in consumer real estate

Modest expense growth

-

53% of expense increase driven by higher credit-related

expenses and 17% by growth initiatives

-

Salaries up reflecting annual merit increases; FTEs

down 416

Record customer satisfaction of 6.65 remains  

best-in-class

-

Strong customer loyalty of 53%

Customer acquisition remains robust

-

New/lost ratio of 1.23; Retail customer acquisition rate

of 15.3% and attrition of 12.4%

-

Commercial customer acquisition up 28%

Continued strong internal partnership results

-

Investment sales up 26% YoY

(a)

Excludes mortgage earnings of $20 million in 2Q08, $157 million in 1Q08 and $310

million in 2Q07, which reflects mortgage provision expense of $526 million in 2Q08,

$252

million in 1Q08 and $9 million in 2Q07.  Please see page 54 for additional

information.

General

Bank

results

excluding

mortgage

(a)

vs

vs

($ in millions)

2Q08

1Q08

2Q07

Net interest income

$

2,834

5

%

8

Service charges

597

4

6

Interchange income

209

12

20

All other fees/income

104

(8)

2

  Fee and other income

910

4

8

    Total revenue

3,814

5

8

Provision

393

24

171

Expense

1,694

1

6

Segment earnings

$

1,097

6

%

(4)

8

Record Wealth Management results, up 7%

Solid performance in the face of declining market valuations

Revenues up 4% QoQ

-

NII up 11% on improved deposit spreads and

loan growth

-

Fees down 2% QoQ

driven by lower market valuations

Up

2% YoY

as growth in fiduciary and asset

management fees offset lower insurance

commissions

Expenses up 3% QoQ reflecting higher personnel

expense partly driven by Western expansion

Overhead efficiency ratio of 61.05% reflects

improvement of 175 bps YoY

AUM down 3% QoQ largely reflecting lower

market valuations

Client acquisition up 16% QoQ

Continued strong partnership results

-

Record insurance bank cross-sell, up 51% YoY

(a) Assets

under

management

include

$37

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)

2Q08

1Q08

2Q07

Net interest income

$

202

11

%

11

Fee and other income

207

(2)

2

Total revenue

412

4

6

Provision

8

60

300

Expense

253

3

4

Segment earnings

98

7

9

Avg

loans, net

23,151

4

10

Avg

core deposits

17,559

(2)

1

AUM

(a)

77,266

(3)

(3)

Investment mgmt sales

(b)

12.5

(11)

(31)

Revenue/RM

(c)

$

2.9

4

4

Wealth Mgmt producers

976

1

%

(1)

9

Corporate and Investment Bank results reflect lower market

disruption losses

Strong core customer-driven activity despite challenging environment

Revenues up 111% QoQ on lower net market

disruption-related losses which totaled

$565 million

(a)

-

Investment Bank origination fees up 16% reflecting

strong performance in global rates, leveraged finance

and equities

-

Principal investing results of $115 million down 72%

from

1Q08

results

that

included

$466

million

in

FAS

157 net gains

Expenses up 29% QoQ on higher revenue-based

incentives in Investment Banking; significant

expense reduction efforts have been implemented

-

Expect 400 of 500 previously announced FTE reductions

to occur in 3Q08

Provision up $241 million driven by higher losses

on residential-related commercial real estate

Loans up 6% QoQ driven by growth in commercial

real estate and international trade finance and

reflects

the

effect

of

$1.8

billion

of

transfers

from

held-for-sale

-

Expect balance sheet reductions over 2H08

Continued strong internal partnership results

-

Revenue on GBG referrals of investment banking

products up 14% YoY

(a) Please see page 21 for additional information.

vs

vs

($ in millions)

2Q08

1Q08

2Q07

IB originations

$

464

16

%

(4)

Capital markets

365

142

(43)

Principal Investing

115

(72)

(62)

Lending

489

(18)

(13)

Treasury and Trade Finance

296

5

12

Total revenue

1,729

111

(23)

Provision

438

122

-

Expense

960

29

(6)

Segment earnings

209

368

(73)

Avg

loans, net

106,642

6

39

Avg

core deposits

31,682

(6)

(14)

Lending commitments

$

113,559

-

%

(2)

10

Capital Management results reflect significant market

disruption losses

Retail brokerage fundamentals remain strong

NII up 10% QoQ on strong retail brokerage

deposit growth

Fees down 9% QoQ reflecting $118 million of

market disruption losses and lower asset valuations

-

$89 million of securities impairments relating to

liquidation of an Evergreen fund

-

Commissions down 2% QoQ driven by lower insurance

commissions

-

Fiduciary and asset management fees down 5% QoQ

on lower market valuations despite retail brokerage

managed account growth

Expenses down 2% QoQ on lower incentives

expense and merger efficiencies

A.G. Edwards merger proceeding as planned;

integration 40% complete

-

Since consummation, broker client assets down only

7% despite 16% decline in S&P 500

Retail Brokerage fundamentals remain strong

-

Record series 7 broker headcount -

up 49; average

production of new FAs

71% higher than attrited FAs

-

Client assets 2Q08 net inflows of $4.8 billion, including

$4.0

billion in managed accounts

Continued strong internal partnership results

-

CIB syndicate revenue up 61% QoQ

-

General Bank referrals: lending up 15%, deposits up

17% QoQ

vs

vs

($ in millions)

2Q08

1Q08

2Q07

Net interest income

$

308

10

%

18

Commissions

806

(2)

53

Fiduciary/asset mgmt

1,234

(5)

36

Other fee income (loss)

(45)

(171)

(145)

Fee and other income

1,995

(9)

30

Total revenue

2,295

(7)

29

Provision

-

-

-

Expense

1,827

(2)

41

Segment earnings

297

(23)

(5)

Avg

loans, net

2,881

12

73

Avg

core deposits

$

48,647

13

56

Retail brokerage headcount

Series 7 brokers

14,632

-

76

Bank series 6 reps

4,308

6

%

70

11

Continued focus on risk reduction

Underlying business fundamentals strong

Results reflect the effect of significant housing deterioration and our expected

outlook for continued deterioration

Actions to reduce housing-related and market disruption exposure

Enhanced diligence and actions around capital and liquidity

12

Expected significant decline in home prices drives higher

credit costs

Credit reserve build of $4.2 billion reflects further

anticipated home price declines of 14%

Rising NPAs and charge-offs reflect significant

weakness in the housing market, particularly in

stressed regions of California and Florida

-

Net charge-offs of $1.3 billion, or 110 bps, up

44 bps QoQ

Provision of $5.6 billion includes reserve build of

$4.2 billion

-

Results reflect expectations for additional 14% decline

in Pick-a-Pay balance-weighted home prices from 2Q08

current average LTV of 85%

(b)

$11.0 billion allowance for credit losses, or 2.24%

of loans, up 83 bps, or $4.2 billion

-

Allowance covers over 2x annualized net charge-offs

-

$4.0 billion consumer reserve build reflects higher

expected loss factors for consumer real estate

Pick-a-Pay allowance ratio of 4.16%

vs. 1.58% in 1Q08

Home equity allowance ratio of 1.46%

Auto portfolio allowance ratio of 3.08%

-

$179 million commercial reserve build including $86

million of FAS 114 reserves

(a) Excludes nonperforming

assets

in

period-end

loans

held

for

sale.

(b) Current LTV estimates based on May Automated Valuation Methodology (AVM) data. Source: Veros. See page 16  for additional information.

($ in millions)

2Q08

1Q08

2Q07

Total period-end loans

$

488,198

480,482

429,120

Nonaccrual loans

   11,049

     7,788

     1,945

Restructured loans

        248

          48

             -

Foreclosed properties

        631

        530

        207

  Total NPAs 

$

   11,928

     8,366

     2,152

as % of loans, net ORE

(a)

2.44

%

1.74

0.50

Provision

$

5,567

2,831

179

Net charge-offs

$

1,309

765

150

  as % of average loans

1.10

%

0.66

0.14

    Commercial

0.88

0.48

0.07

    Consumer

1.26

%

0.79

0.19

Allowance for loan losses

$

10,744

     6,567

     3,390

Allowance for credit losses

$

10,956

     6,767

     3,552

Allowance for loan losses

  as % of loans, net

2.20

%

1.37

0.79

    Commercial

1.29

1.25

1.08

    Consumer

2.81

1.34

0.54

Allowance for credit losses

  as % of loans, net

2.24

%

1.41

0.83

13

Consumer asset quality:  86% of NPAs/61% of charge-offs due to

Pick-a-Pay and CIB mortgage; branch-originated and auto portfolios

continue to outperform industry

(b) (c)

16%

45%

10%

13%

10%

4%

1

st

Lien Home

Equity

Pick-a-Pay

Mortgage

Traditional

Mortgage

2

nd

Lien Home

Equity

1% Other Installment Loans

Student Loans

$272 Billion Consumer Portfolio

Consumer NPAs up $2.8 billion on continued

weakening consumer real estate 

Consumer net charge-offs of $854 million, up $326

million QoQ, driven by consumer real estate losses

of $682 million

-

Includes Pick-a-Pay losses of $508 million

Traditional home equity continued to outperform

industry driven by retail branch origination focus;

losses of 85 bps

(b)

-

2

nd

lien home equity 60+ days past due are 1/3

of industry average

(b)

Auto losses remain low at 1.97% and continued to

outperform industry

(c)

-

30+ days past due of 2.33% vs. industry forecast

of 3.74%

($ in millions)

2Q08

1Q08

2Q07

Consumer loans

$

271,578

268,782

253,751

Consumer NPAs 

$

     8,460

     5,676

     1,671

  as % of loans

3.11

%

2.11

0.66

Consumer net charge-offs

$

854

528

122

  as % of average loans

1.26

%

0.79

0.19

Consumer past due %

(a)

0.32

0.28

0.20

Allowance as a % of loans

2.81

%

1.34

0.54

Auto

1% CIB Mortgage

(b) Please

see

pages

44-45

for

additional

information.

(c) Please see page 46 for additional information.

(a)  Consumer past dues are loans 90 days and over as a % of total loans.

14

Consumer Mortgage:

Pick-a-Pay and CIB mortgage account for 94%

of NPAs and losses

Traditional mortgage performing well

Pick-a-Pay NPAs up $2.4 billion QoQ

-

Trends largely reflect the continued effect of declining

home values, particularly in stressed areas such as

CA and FL

-

Average Pick-a-Pay original LTV of 71%; current

average LTV of 85%

(b)

-

Focused on aggressive resolution of problem assets

with accelerated disposition of foreclosed properties

Sold 1,151 properties in 2Q08 vs. 825 properties in

1Q08; new inflows to REO of 1,445

-

Economic severity increased to 36% vs. 32%

in 1Q08

Traditional mortgage performing well; charge-offs

of 28 bps

-

Avg

LTV at origination of 70%; average FICO score

of 731

-

Current average LTV of 69%

(b)

;

current average FICO

score of 732

CIB mortgage non-branch originated largely Alt-A

loans originally intended for distribution

-

NPAs of $262 million, up $98 million QoQ

All FICO scores and LTVs at origination unless otherwise noted and where available.

(a)

Includes other non Pick-a-Pay product balances of $6.2 billion in 2Q08, $6.0 billion in 1Q08 and $4.0 billion in 2Q07.

(b) Based on AVM (automated valuation method) using May data. Source: Veros.

($ in millions)

2Q08

1Q08

2Q07

Pick-a-Pay

(a)

$

122,026

121,161

117,222

NPAs

$

7,049

4,623

1,208

as a % of loans

5.78

%

3.82

1.03

Net charge-offs

$

508

240

4

as % of avg

loans

1.67

%

0.79

0.01

Traditional mortgage

$

44,601

46,731

45,219

NPAs

$

436

309

157

as a % of loans

0.98

%

0.66

0.35

Net charge-offs

$

32

29

5

as % of avg

loans

0.28

%

0.23

0.04

CIB mortgage

$

2,097

2,201

32

NPAs

$

262

164

6

as a % of loans

12.51

%

7.46

17.49

Net charge-offs

$

12

-

-

as % of avg

loans

2.14

%

0.02

-

Total mortgage loans

$

168,724

170,093

162,473

15

Revised Pick-a-Pay reserve model output driven by expected

continued deterioration in housing, economic environment

and related performance

(a) HPI defined as house price index and is balance-weighted by MSA according to Pick-a-Pay portfolio stratification.

(b) Based

on

automated

valuation

methodology

as

of

May

2008.

Source:

Veros

(c) FICO scores where available; loan pool without FICO score stratified proportionately to available data.

(d) Average actual loss on foreclosed properties (including maintenance and selling costs) as a percentage of the average loan balances at time of foreclosure.

Outlook for housing and the economy has continued to worsen

In 2Q08 the portfolio performed below 1Q08 expectations

Updated model inputs include a more severe home price decline scenario

Resulted in increased cumulative loss output

As of 2Q08

Pick-a-Pay model home price scenario

Housing trough occurs in Mid 2010

Portfolio-weighted peak to trough

HPI (House Price Index) forecast

(a)

Nationwide

-20.8%

California

-23.1%

Florida

-28.6%

Pick-a-Pay portfolio characteristics

30+ days past due

3.9%

60+ days past due

1.3%

NPAs

5.8%

Current average LTV

(b)

85.0%

Current average FICO

(c)

661

REO loss severity

(d)

36.0%

Pick-a-Pay Balance Weighted HPI

(a)

225

245

265

285

305

325

1Q08 HPI Assumptions

2Q08 HPI Assumptions

16

Pick-a-Pay portfolio: Concentrations in stressed geographies

Driving consumer real estate reserve build

25 MSAs

account for 90% of Pick-a-Pay historical losses and 75% of expected cumulative losses

(a)

Cumulative losses in these stressed geographies are significantly higher than the portfolio average

California and Florida average cumulative losses are estimated at 10% and 19%, respectively  

(a)  Pick-a-Pay model output does not include adjustments made for non-modeling calculations and known model risks.  Please see page 17

for additional information.

(b) Current LTV estimates based on May Automated Valuation Methodology (AVM ) data. Source: Veros.

($ in millions)

MSA

Total

Outstandings

% of Total

Original

Current

(b)

Avg

at

Trough

Original to

Current

(b)

Current to

Trough

(b)

Original to

Trough

$

%

Los Angeles

12,926

11%

68

80

95

-9%

-16%

-24%

1,278

10%

Oakland

10,711

9%

70

90

99

-14%

-10%

-23%

462

4%

Riverside

6,315

5%

72

105

135

-26%

-22%

-43%

1,339

21%

Santa Ana

6,368

5%

69

84

104

-12%

-20%

-30%

546

9%

San Francisco

5,365

4%

67

74

78

-2%

-6%

-8%

156

3%

San Diego

4,980

4%

70

91

103

-15%

-12%

-26%

469

9%

San Jose

4,658

4%

69

78

87

-4%

-10%

-14%

255

5%

Sacramento

4,105

3%

72

104

117

-22%

-12%

-32%

542

13%

Washington DC

2,895

2%

73

77

93

0%

-18%

-18%

411

14%

Phoenix

2,701

2%

72

89

120

-13%

-26%

-35%

648

24%

Ft Lauderdale

2,637

2%

71

82

100

-10%

-18%

-26%

495

19%

Stockton

2,091

2%

73

116

134

-31%

-15%

-41%

504

24%

Vallejo

1,838

2%

73

102

121

-24%

-16%

-35%

327

18%

Miami

1,801

1%

70

72

98

2%

-27%

-25%

396

22%

Oxnard

1,688

1%

70

89

98

-17%

-9%

-24%

135

8%

Santa Rosa

1,686

1%

71

91

94

-16%

-4%

-19%

93

6%

West Palm Beach

1,557

1%

70

86

102

-14%

-16%

-28%

286

18%

Modesto

1,474

1%

72

116

137

-32%

-16%

-43%

340

23%

Salinas

1,302

1%

69

95

106

-19%

-12%

-28%

180

14%

Las Vegas

1,305

1%

71

94

134

-19%

-30%

-44%

290

22%

Fresno

926

1%

71

99

120

-22%

-18%

-36%

175

19%

Santa Barbara

917

1%

68

86

102

-9%

-16%

-24%

150

16%

Bakersfield

627

1%

72

109

125

-29%

-14%

-39%

102

16%

Cape Coral

582

0%

70

89

94

-14%

-7%

-20%

72

12%

Merced

510

0%

72

119

141

-30%

-17%

-42%

145

29%

Total 25 MSAs

81,964

67%

70

89

105

-13%

-15%

-25%

9,797

12%

Other U.S.

40,221

33%

72

75

84

-1%

-11%

-12%

3,311

8%

Central Valley

10,203

8%

72

109

126

-26%

-14%

-36%

1,835

18%

Inland Empire

11,295

9%

71

99

121

-21%

-18%

-34%

1,808

16%

California

71,211

58%

70

90

104

-13%

-14%

-24%

7,302

10%

Florida

12,126

10%

71

82

100

-9%

-19%

-27%

2,294

19%

Total Pick-a-Pay

122,026

100%

71

99

-9%

-14%

-21%

13,108

11%

Change in House Price Value

Cumulative Losses

(a)

Pick-a-Pay

Loan to Value

85

Balance-Weighted

Balance-Weighted

Balance-Weighted

17

Significantly increasing reserve

Updated Pick-a-Pay reserve model output reflects 2H08 reserve

build of $1.3 billion

Updated

cumulative

loss

modeled

output

of

approximately

12%

over

the

remaining life of the current portfolio; approximately 88% of modeled

losses to occur in next 3 years

(a) 2Q08 as of June 30, 2008. Future changes in assumptions could cause output to change.

These outputs are generated via a modeling process in which adjustments are made for non-

modeled calculations and known model risks. These outcomes are expected to 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. Ending

allowance to loans assumes 2008 and 2009 period-end loans of $120.3 billion and $120.1

billion, respectively. Actual 2008 and 2009 results are expected

to be affected by proactive

credit risk management and capital management strategies. The model outputs are not

intended to be forecasts. Future actual reserves may differ from

the current model outputs

shown above.

75%

of

2Q08

reserve

build

relates

to

a

more

negative

anticipated

housing

scenario

The above modeled output does not reflect the anticipated benefit of planned portfolio

reduction and other loss mitigation strategies

1Q08

2Q08

2nd Half 2008

2009

($ in billions)

Actual

Actual

Model Output

(a)

Model Output

(a)

As of 2Q08

Charge-offs

0.2

$     

0.5

2.3

6.6

Additional provision

1.1

3.3

1.3

(1.0)

Total Pick-a-Pay credit costs

1.3

3.8

3.6

5.6

Ending allowance

2.0

$     

5.2

6.6

5.6

Ending allowance to loans

1.6

%

4.2

5.4

4.7

18

Changes to General Bank mortgage strategy and business

model

Taking actions to reduce exposure to reflect the housing climate

Adjusting Pick-a-Pay product and model in light of continuing deterioration in the housing market

-

Ceased origination of negative amortization products

-

Discontinuing the wholesale channel

New originations limited to a core customer-centric strategy supporting Wachovia’s retail, brokerage and

wealth clients

Approximately 1,000 employees will be dedicated to contacting customers proactively to propose refinance

and restructure opportunities

-

Portfolio segmentation by probability of default and severity

-

Customized approach and refinance/restructuring offers based on segmentation

-

Offers may include rate buydowns

and/or principal reductions; conversions into conventional products

19

Revised underwriting standards to reflect

realities of the housing environment

Substantially expanding loss mitigation activities

and REO strategies and capacity

Exiting wholesale mortgage channel

Continuing expense reductions

-

Reduced mortgage headcount by 2,000 through

June 2008, with plans to reduce another 4,400 FTEs

over the next 12 months

-

Expected cumulative $350 million in expense

reductions through strategic actions

General Bank mortgage: Actions taken to address challenges

Going forward strategy focused on customer-centric conforming originations

Pick-a-Pay Actions

Eliminated negative amortization payment option

loan products

Waiver of prepayment fee on all Pick-a-Pay loans

Discontinued loan retention strategies

20

Commercial portfolio remains well positioned

72% of charge-offs due to residential-related real estate stress

REFS NPAs up $585 million; charge-offs of $283

million up $157 million, or 124 bps, to 2.34%

-

Increases driven largely by the residential-related

portfolio

-

Launched extensive review of income producing

portfolio (retail, office, commercial land and unsecured)

in response to the changing economic environment

Other commercial NPAs up $193 million; charge-

offs up $61 million to $172 million, or 41 bps

-

Increase in charge-offs largely related to 2 large credits

Period-end balance sheet as of 6/30/2008.

(a) Real Estate Financial Services (REFs) portfolio includes commercial real estate

loans from the REFS portfolio and commercial real estate loans held-for-investment

in Investment

Banking.

Refer to pages 47-49 for additional information.

$217 Billion Commercial Loan Portfolio

Building Contractors

2%

3%

9%

Retail Trade

12%

Services

Agriculture/Forestry/Fishing

1%

15%

Finance

Other

1%

Manufacturing

Mining

1%

12%

Property

Management

Public Administration

1%

6%

6%

Transportation/

Public Util

20%

Individuals

NEC/Nonclass

Insurance

1%

Wholesale Trade

4%

6%

Residential REFS

Income Producing                       

REFS

($ in millions)

2Q08

1Q08

2Q07

REFS

portfolio

(a)

48,355

47,644

36,787

NPAs

$

2,469

1,884

170

as % of loans

5.10

%

3.95

0.46

Net charge-offs

$

283

126

3

as % of avg

loans

2.34

%

1.10

0.01

Other commercial

$

168,265

164,056

141,896

NPAs

$

999

806

311

as % of loans

0.59

%

0.49

0.22

Net charge-offs

$

172

111

25

as % of avg

loans

0.41

%

0.27

0.06

Total commercial loans

$

216,620

211,700

178,683

NPAs

$

3,468

2,690

481

as % of loans

1.60

%

1.27

0.27

Net charge-offs

$

455

237

28

as % of avg

loans

0.88

%

0.48

0.07

Allowance

$

2,793

2,645

1,889

as % of loans

1.29

%

1.25

1.08

$

21

Market disruption-related losses declined by 59% from 1Q08

Includes benefits from lower distribution-related exposures

(a) Net of associated hedges.

(b) 2

half 2007 includes $50 million of provision expense relating to loan impairments. 

Market Disruption-Related Losses, Net

(a)

($ in millions)

2Q08

1Q08

Corporate and Investment Bank

ABS CDO and other subprime-related

$

(238)

(339)

(1,048)

Commercial mortgage (CMBS)

(209)

(521)

(1,088)

Consumer mortgage

(68)

(251)

(205)

Leveraged finance

102

(309)

(179)

Other

(152)

(144)

(50)

Total

(565)

(1,564)

(2,570)

Capital Management

Impairment losses

(118)

0

(57)

Parent

Impairment losses/other

(b)

(253)

(723)

(94)

Total, net

(936)

(2,287)

(2,721)

Discontinued operations

(BluePoint)

$

0

0

(330)

2nd Half

2007

nd

22

Reduced market-related CIB distribution exposure

Reflects focused risk mitigation strategies

0

3000

6000

9000

12000

3Q07

4Q07

1Q08

2Q08

Subprime-related

Leveraged Finance

Commercial Mortgage - CMBS

($ in millions)

Leveraged finance

Net

exposure

of

$3.8

billion

including

$574

million

of unfunded commitments; $600 million of exposure

reflects new business

-

Sales of $1.4 billion during the quarter

Commercial mortgage (CMBS)

Net exposure of $756 million

-

No assets moved to securities/loan portfolios

-

Sold $2.5 billion in 2Q08

Subprime-related

(a)

Net exposure of $1.9 billion including $4.0 billion

of hedges; $2.0 billion hedged with monoline

guarantors

$11.1B

$10.5B

$3.8B

$3.8B

$756MM

$1.9B

CIB is the Corporate and Investment Bank.

(a) Includes ABS CDO-related and subprime RMBS distribution exposures in the Corporate and Investment Bank.

$9.1B

$2.5B

$7.6B

$8.2B

$3.0B

$2.2B

23

Actions and initiatives around capital and liquidity

Underlying business fundamentals strong

Continued focus on risk reduction

Initiatives under

way to protect, preserve and generate capital and

liquidity

24

Actions

Opportunity for sale of non-core assets

Pick-a-Pay refinance to marketable alternatives

Balance sheet discipline/risk-reduction strategies

expected to result in $20 billion reduction in

loans/securities by YE 2008

-

Targeted to free up as much as $1.5 billion in capital

Reduce expenses budgeted and defer capital

consuming initiatives

-

Preserves

up

to

$1.5

billion

in

capital

2008

-

2009

Reduce

quarterly

dividend

rate

to

$0.05

per

share

-

Preserves approximately $700 million of capital quarterly

Strategies to protect, preserve and generate capital

Expected to benefit Tier 1 capital by more than $5 billion by YE

2009

(a) 2Q08 capital ratios are based on estimates.

7.4%

12.1%

6.6%

5.1%

4.6%

6.2%

12.7%

8.0%

Tier 1

Total Capital

Leverage

Tangible Capital

Capital Ratios

(a)

1Q08           2Q08

Continued Commitment to Balance

Sheet Strength

25

Strategy to preserve capital through expense discipline 

$1.5 billion reduction of 2009 controllable expenses & OER

improvement of 200 -

300 bps

(a)

Launched a thorough expense reduction effort in

early June

-

Expected to lower full year budgeted 2009 expense

growth by $1.5 billion

-

Approximately 40% personnel, 25% other, 23% projects

and 12% marketing and advertising

-

2H08 expense benefit of approximately $490 million

expected to be offset by severance and other costs

-

Reviewed 500 existing or planned capital projects

Resulted in the delay or cancellation of projects which

reduced 2009 planned capital expenditures by $350

million

Expense actions expected to have modest effect

on revenue

-

Includes reduction of approximately 6,350 active FTEs

and 4,400 open positions and contractors

-

Western expansion will continue but at a more

deliberate pace

Expected to improve 2009 overhead efficiency 

ratio by 200 –

300 bps from a normalized 2008

base of 57%

Expected to preserve up to $1 billion in capital

Corporate

and

Investment

Bank

OTG/

Occupancy/

Mktg/Staff

Capital

Management

Wealth

$1.5 billion Reduction in Estimated

2009 Expense Growth

(a)

33%

13%

7%

13%

4%

Mortgage

30%

General Bank

ex. Mortgage

(a) These actions are in addition to $354 million annualized expense benefit from previously announced reductions in CIB, CMG and mortgage.

26

Strategies to protect and preserve capital

Targeting at least $20 billion reduction in loans/securities by

YE 2008

No reinvestment of maturing securities

Enhanced discipline to ensure commercial lending is geared towards strategic relationships

-

Revised ROE, ROA and RAROC targets established for all renewals and new commitments

Active programs to further enhance the mix of our consumer loan portfolios

-

Reducing mortgage concentration

Tightened mortgage underwriting standards

Discontinuing negative amortization option loan originations

Eliminating General Bank wholesale channel

Eliminating focus on Pick-a-Pay mortgage retention

Offering opportunities to refinance into conforming products

Not currently considering significant portfolio sales

-

Additional measures

Increased pricing in auto portfolio

Review of non-core assets

27

9%

23%

6%

55%

7%

Strategies to protect strong liquidity profile

Stable liability funding with 87% funded by deposits, long-term

debt and equity

Proactively managing liquidity and capital for

challenging environment

-

Significantly increased funding availability in face of

rising industry challenges

Wachovia holding company continues to maintain

a prudent liquidity profile

-

HoldCo

cash position of $22 billion at quarter-end

equates to approximately 3.5 years of long-term debt

maturities

Pre-market disruption cash position of $14 billion as

of 6/30/07

-

Flexibility and liquidity further enhanced by dividend

reduction

Wachovia Bank, NA continues to be a provider

of excess liquidity to the market

-

Retail brokerage average deposit products increased

$5.7 billion QoQ with expected new balances of $10

billion over next several quarters

Balance sheet strategies and asset sales

anticipated to further enhance strong bank

liquidity position

Period end as of 6/30/08.

Stable Liability Funding

87% funded by Deposits, LTD & Equity

Total

Deposits

Other Liab

ST

Debt

LT

Debt

Equity

28

Summary and Outlook

Addressing current challenges aggressively, directly and with

clarity

Summary

We understand our issues and challenges,

are already addressing them and will be taking

further actions

We have faced up to and are realistically

addressing the realities of the current housing

market and its expected deterioration; we are

discontinuing the negative amortization product

and exiting the General Bank wholesale channel

We have several initiatives under way to protect,

preserve and generate capital, and additional

options are available to us

We are committed to a strong Balance Sheet,   

and protecting and creating shareholder value

Our core businesses are attractive and performing

well; we are committed to strengthening them

while continuing to excel in operating them

Outlook

Expect 2H08 net interest income to decline

modestly as balance sheet contraction and

NPA growth outweigh deposit expansion

(a)

Fees remain exposed to net market disruption

losses/gains

Company-wide focus on expense control

Expect continued challenging credit environment

FY08 tax rate of 17.0%-17.5%

(b)

Focus on actions to increase Tier 1 capital from

current levels

(a) Versus 1H08 net interest income of  $10.1 billion excluding the effect of the $975 million SILO charge.

(b) Tax-equivalent.

29

Appendix

30

Wachovia’s fundamental strengths

Fundamental Strengths

Tier 1 capital position of $50 billion

(a)

-

Exceeds “well-capitalized”

definition by more than $12 billion

87% of liabilities funded by deposits, long-term debt and equity

HoldCo

cash position of $22 billion

-

Equates to 42 months of long-term debt obligations

Strong capital and stable

liquidity funding

80% of U.S. population growth expected within Wachovia’s

footprint

$85K deposit-weighted average household income vs.

$73K U.S. average

High growth / highly affluent

footprint

#3 Deposit market share in the U.S.

-

#1 in the Southeastern U.S.

#3 Retail Brokerage

#8 Wealth Manager

Top 10 U.S. loan syndications, high yield, equity and preferred

stock

Leading market positions

#1 ACSI for 7   year in a row

Best in class customer service

Strong commitment to employee engagement and community development

(a) 2Q08 capital based on estimates.

th

31

General Bank key metrics

Average loans up 10% YoY

-

Mortgage originations down 26%; higher marketable

production offset by lower Pick-a-Pay volumes

-

Home equity down 56% largely reflecting implementation

of tightened credit standards and sales efficiency efforts

> 95%

direct channel originations

-

Auto originations up 12%

Average core deposits flat YoY; low-cost core

deposits up 4% YoY

-

2Q08 net new checking account sales of 263,000,

including 166,000 checking accounts linked to

Way2Save accounts

Debit/credit card purchase volume up

14% YoY

Opened 23 de novo branches and consolidated

38 branches in 2Q08

New/lost ratio of 1.23

-

Retail customer acquisition rate of 15.3%; attrition of

12.4%

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)

2Q08

1Q08

2Q07

Product originations

Mortgage

$

11,768

(8)

%

(26)

First lien home equity

1,731

(7)

(50)

Second lien home equity

2,223

(7)

(60)

Auto

3,692

(1)

12

Avg loans, net

$

319,574

3

10

Net new checking

262,577

51

(17)

Avg core deposits

$

290,381

(2)

-

Card purchase volume

(a)

$

19,131

10

%

14

Customer loyalty

(b)

53

%

40

bps

(80)

New/Lost ratio

(c)

1.23

(4)

bps

(6)

Commercial customer

acquisition

(d)

374

28

%

32

32

Capital Management key metrics

Series 7 brokers up 49 QoQ

Series 6 reps up 6% QoQ

Broker client assets down only 1% QoQ despite

3% decline in S&P 500

Managed account assets up 28% YoY driven by

the AGE acquisition as well as $12.7 billion in net

inflows

Retail brokerage

deposits up 57% YoY driven by

$12.9 billion from AGE merger including solid

growth since the acquisition

Continued strong annuity sales, up 70% YoY

AUM down 13% YoY on lower market valuations

and net asset outflows of $24.1 billion

Gross fluctuating fund flows down 35% QoQ

primarily driven by lower equity fund sales

Institutional Asset Management: long-term asset

mandates up 72% QoQ

(a) Annualized.

(b) Assets under management include $37

billion in assets managed for Wealth Management, which are also reported in that segment. 

vs

vs

($ in billions)

2Q08

1Q08

2Q07

Retail Brokerage

Series 7 brokers

14,632

-

%

76

Bank series 6 reps

4,308

6

70

  Managed acct assets

$

193.4

2

28

  Avg FDIC sweep deposits

48.3

13

57

Client assets

$

1,107.1

(1)

%

39

Recurring revenue

61.0

%

(80)

bps

-

Rev/broker

(000)

(a)

$

576

(1)

%

(18)

In-bank revenue

(millions)

278

(1)

2

Loan originations

$

1.9

12

%

12

Pre-tax margin

23.5

%

(70)

bps

(330)

Asset Management

Total AUM

(b)

$

245.9

(5)

%

(13)

Gross fluctuating 

fund flows

$

1.7

(35)

%

(37)

Pre-tax margin

(18.0)

%

-

bps

-

33

Corporate and Investment Bank

Remaining distribution exposure to certain asset classes

(a)

At 6/30/08, $2.0 billion is hedged with monoline financial guarantors; $900 million with a AA-rated large European bank and $1.0 billion with a large AA-rated global multi-

line insurer, both under margin agreements.

Subprime-related, CMBS and Leveraged Finance

6/30/08

Distribution Exposure, Net

Exposure

6/30/08

Hedged With

6/30/08

3/31/08

6/30/08

9/30/07

6/30/08

Gross

Various

Net

Net

vs

Net

vs

($ in millions)

Exposure

Instruments

Exposure

Exposure

3/31/08

Exposure

9/30/07

ABS CDO-related exposures:

Super senior ABS CDO exposures

High grade

$

2,331

(2,331)

0

0

-

%

0

-

%

Mezzanine

2,022

(1,603)

419

439

(5)

1,228

(66)

CDO-squared

0

0

0

0

-

0

-

Total super senior ABS CDO exposures

4,353

(3,934)

419

439

(5)

1,228

(66)

Other retained ABS CDO-related exposures

29

(17)

12

68

(82)

559

(98)

Total ABS CDO-related exposures

(a)

4,382

(3,951)

431

507

(15)

1,787

(76)

Subprime RMBS exposures:

AAA rated

1,524

0

1,524

1,684

(10)

2,093

(27)

Below AAA rated (net of hedges)

(46)

0

(46)

40

215

(43)

(7)

Total subprime RMBS exposures

1,478

0

1,478

1,724

(14)

2,050

(28)

Total subprime-related exposures

5,860

(3,951)

1,909

2,231

(14)

3,837

(50)

Commercial mortgage-related (CMBS)

756

0

756

2,954

(74)

10,503

(93)

Leveraged finance (net of applicable fees)

$

n.a.

n.a.

3,766

8,157

(54)

%

11,086

(66)

%

34

Consumer real estate

($ in millions)

All FICO scores and LTVs

at origination unless otherwise noted and where available.

(a) AVM is automated valuation method using May 2008 data. Source: Veros.

Region

Outstandings

Original

LTV

Current

LTV -

AVM

(a)

Original

FICO

Current

FICO

Central Valley

$10,203

72

109

665

647

Inland Empire

$11,295

71

99

662

646

Total CA

$71,211

70

90

666

655

FL

$12,126

71

82

677

658

NJ

$6,102

71

74

692

682

AZ

$3,076

72

87

680

670

TX

$2,932

75

63

669

660

Other States

$26,579

72

75

686

674

Total Pick-A-Pay

$122,026

71

85

675

661

FL

$8,003

69

72

729

725

CA

$7,630

66

67

742

751

NC

$3,782

75

70

731

731

NJ

$3,472

69

70

729

729

GA

$3,174

76

75

724

719

Other States

$20,637

71

68

730

731

Total Trad

Mtg

$46,698

71

69

731

732

Total Mortgage

$168,724

71

81

690

684

FL

$12,325

74

78

726

722

NJ

$7,571

71

70

732

732

PA

$6,184

76

67

730

732

NC

$6,111

79

74

725

728

VA

$4,992

75

70

730

735

Other States

$24,613

75

75

723

719

Total Home Equity

$61,796

75

73

727

725

35

Consumer Real Estate

FICO scores and LTV stratification

All FICO scores and LTVs

at origination unless otherwise noted and where available.

Traditional mortgage includes CIB mortgage outstandings of $2.1 billion.

The

percentages

in

the

table

above

may

not

add

to

the

totals

due

to

rounding.

Original

FICO

<=60

61-70

71-75

76-80

81-85

86-90

91-95

96-100

100+

Total

Balance

700+

6%

7%

8%

13%

1%

0%

0%

0%

0%

35%

43,190

$  

660-699

3%

5%

5%

9%

0%

0%

0%

0%

0%

23%

27,916

$  

620-699

3%

5%

5%

9%

0%

0%

0%

0%

0%

21%

26,071

$  

<620

4%

6%

4%

6%

0%

0%

0%

0%

0%

20%

24,849

$  

15%

22%

22%

38%

2%

0%

0%

0%

0%

100%

122,026

$

700+

17%

13%

9%

28%

1%

3%

1%

2%

0%

74%

34,603

$  

660-699

3%

3%

2%

6%

0%

1%

0%

1%

0%

16%

7,652

$    

620-699

1%

1%

1%

3%

0%

0%

0%

1%

0%

7%

3,371

$    

<620

0%

0%

0%

1%

0%

0%

0%

0%

0%

2%

1,072

$    

21%

17%

12%

38%

1%

4%

2%

4%

0%

100%

46,698

$  

700+

20%

9%

6%

9%

6%

15%

3%

4%

0%

72%

20,091

$  

660-699

3%

2%

1%

2%

2%

4%

1%

2%

0%

17%

4,715

$    

620-699

1%

1%

1%

1%

1%

2%

0%

1%

0%

9%

2,407

$    

<620

1%

0%

0%

0%

0%

0%

0%

0%

0%

2%

614

$       

26%

12%

8%

13%

9%

21%

4%

8%

0%

100%

27,827

$  

700+

11%

8%

6%

10%

8%

20%

3%

5%

0%

72%

24,595

$  

660-699

2%

2%

1%

2%

2%

4%

1%

2%

0%

17%

5,700

$    

620-699

1%

1%

1%

1%

1%

2%

0%

1%

0%

8%

2,841

$    

<620

1%

0%

0%

0%

0%

0%

0%

0%

0%

2%

833

$       

15%

12%

9%

14%

11%

26%

5%

8%

0%

100%

33,969

$  

18%

18%

16%

31%

4%

7%

2%

3%

0%

100%

230,520

$

Total

Original CLTV

Total

Total

Total

Total

RE Total

36

Consumer Real Estate FICO scores and LTV stratification

Prior to 2004 and 2005 vintages

All FICO scores and LTVs

at origination unless otherwise noted and where available.

Traditional mortgage includes CIB mortgage outstandings of $2.1 billion.

The

percentages

in

the

table

above

may

not

add

to

the

totals

due

to

rounding.

Original

FICO

<=60

61-70

71-75

76-80

81-85

86-90

91-95

96-100

100+

Total

Balance

700+

5%

8%

9%

15%

0%

0%

0%

0%

0%

37%

8,943

$    

660-699

3%

5%

6%

11%

0%

0%

0%

0%

0%

25%

5,894

$    

620-699

2%

4%

5%

9%

0%

0%

0%

0%

0%

21%

4,948

$    

<620

3%

5%

4%

5%

0%

0%

0%

0%

0%

18%

4,242

$    

14%

22%

24%

40%

0%

0%

0%

0%

0%

100%

24,027

$  

700+

18%

16%

10%

29%

1%

2%

1%

1%

0%

77%

9,587

$    

660-699

3%

3%

2%

7%

0%

1%

0%

0%

0%

16%

2,005

$    

620-699

1%

1%

1%

3%

0%

0%

0%

0%

0%

6%

732

$       

<620

0%

0%

0%

0%

0%

0%

0%

0%

0%

1%

131

$       

21%

20%

13%

38%

1%

3%

1%

2%

0%

100%

12,456

$  

700+

21%

8%

5%

8%

6%

18%

3%

5%

0%

74%

3,619

$    

660-699

3%

2%

1%

2%

2%

5%

1%

2%

0%

17%

850

$       

620-699

1%

1%

1%

1%

1%

2%

0%

1%

0%

7%

366

$       

<620

0%

0%

0%

0%

0%

0%

0%

0%

0%

2%

81

$        

26%

11%

7%

11%

9%

25%

4%

7%

0%

100%

4,916

$    

700+

10%

8%

6%

9%

10%

21%

4%

4%

0%

73%

4,854

$    

660-699

2%

2%

2%

2%

2%

5%

1%

2%

0%

18%

1,171

$    

620-699

1%

1%

1%

1%

1%

2%

0%

1%

0%

8%

515

$       

<620

0%

0%

0%

0%

0%

0%

0%

0%

0%

2%

140

$       

14%

11%

9%

12%

14%

28%

5%

7%

0%

100%

6,679

$    

17%

19%

17%

33%

3%

7%

2%

2%

0%

100%

48,078

$  

Total

2005 Original CLTV

Total

Total

Total

Total

RE Total

Original

FICO

<=60

61-70

71-75

76-80

81-85

86-90

91-95

96-100

100+

Total

Balance

700+

7%

9%

9%

15%

0%

0%

0%

0%

0%

39%

9,218

$    

660-699

3%

5%

6%

10%

0%

0%

0%

0%

0%

24%

5,671

$    

620-699

3%

4%

6%

7%

0%

0%

0%

0%

0%

20%

4,621

$    

<620

3%

5%

4%

4%

0%

0%

0%

0%

0%

17%

4,052

$    

16%

23%

25%

35%

0%

0%

1%

0%

0%

100%

23,562

$  

700+

20%

16%

10%

22%

1%

2%

1%

1%

0%

73%

7,616

$    

660-699

4%

4%

2%

5%

0%

1%

0%

1%

0%

17%

1,808

$    

620-699

1%

1%

1%

2%

0%

0%

0%

0%

0%

7%

742

$       

<620

0%

0%

0%

0%

0%

0%

0%

0%

0%

2%

251

$       

25%

21%

13%

30%

1%

3%

2%

3%

0%

100%

10,417

$  

700+

18%

9%

5%

7%

7%

13%

3%

4%

0%

65%

7,145

$    

660-699

4%

2%

2%

2%

2%

5%

1%

2%

0%

20%

2,232

$    

620-699

2%

1%

1%

2%

1%

2%

1%

1%

0%

11%

1,192

$    

<620

1%

0%

0%

0%

0%

1%

0%

0%

0%

3%

340

$       

24%

13%

8%

11%

11%

21%

5%

7%

0%

100%

10,909

$  

700+

9%

7%

5%

7%

8%

18%

4%

6%

0%

65%

5,113

$    

660-699

2%

2%

2%

2%

3%

5%

2%

3%

0%

21%

1,688

$    

620-699

1%

1%

1%

1%

2%

2%

1%

2%

0%

11%

838

$       

<620

1%

0%

0%

0%

0%

0%

0%

0%

0%

3%

231

$       

13%

11%

8%

10%

13%

26%

7%

11%

1%

100%

7,869

$    

19%

19%

17%

26%

4%

9%

3%

4%

0%

100%

52,757

$  

Total

2004 and Prior Original CLTV

Total

Total

RE Total

Total

Total

37

Consumer Real Estate FICO scores and LTV stratification

2006 and 2007 vintages

Original

FICO

<=60

61-70

71-75

76-80

81-85

86-90

91-95

96-100

100+

Total

Balance

700+

5%

7%

7%

13%

1%

1%

0%

0%

0%

33%

11,054

$  

660-699

3%

4%

5%

9%

1%

0%

0%

0%

0%

22%

7,282

$    

620-699

3%

5%

4%

10%

1%

0%

0%

0%

0%

22%

7,424

$    

<620

5%

6%

4%

7%

0%

0%

0%

0%

0%

22%

7,289

$    

15%

21%

21%

39%

3%

1%

0%

0%

0%

100%

33,049

$  

700+

13%

9%

7%

29%

1%

3%

2%

6%

0%

71%

8,182

$    

660-699

2%

2%

2%

7%

0%

1%

0%

2%

0%

17%

1,927

$    

620-699

1%

1%

1%

4%

0%

0%

0%

2%

0%

9%

1,047

$    

<620

1%

0%

0%

1%

0%

0%

0%

1%

0%

3%

400

$       

17%

13%

10%

41%

1%

5%

3%

10%

0%

100%

11,557

$  

700+

22%

8%

6%

12%

5%

16%

3%

5%

0%

77%

3,615

$    

660-699

3%

1%

1%

2%

1%

3%

1%

2%

0%

13%

626

$       

620-699

2%

1%

0%

1%

1%

1%

1%

2%

0%

8%

378

$       

<620

1%

0%

0%

0%

0%

0%

0%

0%

0%

2%

87

$        

27%

10%

7%

15%

7%

20%

5%

9%

0%

100%

4,705

$    

700+

12%

9%

6%

13%

6%

20%

3%

5%

0%

74%

6,568

$    

660-699

2%

2%

1%

2%

1%

4%

1%

2%

0%

15%

1,305

$    

620-699

1%

1%

1%

1%

1%

2%

0%

1%

0%

8%

727

$       

<620

1%

0%

0%

0%

0%

0%

0%

0%

0%

3%

233

$       

16%

12%

8%

16%

9%

26%

4%

8%

0%

100%

8,833

$    

17%

17%

16%

34%

4%

7%

2%

4%

0%

100%

58,145

$  

Total

RE Total

Total

Total

Total

2007 Original CLTV

Total

All FICO scores and LTVs

at origination unless otherwise noted and where available.

Traditional mortgage includes CIB mortgage outstandings of $2.1 billion.

The

percentages

in

the

table

above

may

not

add

to

the

totals

due

to

rounding.

Original

FICO

<=60

61-70

71-75

76-80

81-85

86-90

91-95

96-100

100+

Total

Balance

700+

5%

6%

7%

12%

0%

0%

0%

0%

0%

31%

9,912

$    

660-699

2%

4%

5%

9%

0%

0%

0%

0%

0%

21%

6,777

$    

620-699

3%

5%

4%

11%

0%

0%

0%

0%

0%

22%

7,194

$    

<620

5%

7%

5%

8%

0%

0%

0%

0%

0%

25%

8,145

$    

15%

22%

22%

39%

1%

1%

0%

0%

0%

100%

32,029

$  

700+

16%

10%

8%

29%

1%

3%

2%

3%

0%

72%

5,278

$    

660-699

3%

3%

2%

7%

0%

1%

0%

1%

0%

17%

1,213

$    

620-699

1%

1%

1%

3%

0%

0%

0%

1%

0%

8%

581

$       

<620

1%

0%

0%

1%

0%

0%

0%

1%

0%

3%

234

$       

21%

14%

11%

40%

2%

4%

2%

5%

0%

100%

7,307

$    

700+

18%

6%

4%

8%

6%

20%

4%

7%

0%

73%

3,211

$    

660-699

3%

1%

1%

2%

1%

4%

1%

3%

0%

16%

722

$       

620-699

1%

1%

1%

2%

1%

1%

1%

1%

0%

8%

371

$       

<620

0%

0%

0%

0%

0%

0%

0%

0%

0%

2%

73

$        

22%

9%

6%

13%

8%

25%

6%

11%

0%

100%

4,377

$    

700+

12%

9%

7%

9%

9%

20%

3%

5%

0%

73%

5,722

$    

660-699

2%

2%

1%

2%

2%

4%

1%

2%

0%

16%

1,256

$    

620-699

1%

1%

1%

1%

1%

2%

1%

1%

0%

8%

641

$       

<620

1%

0%

0%

0%

0%

0%

0%

0%

0%

2%

194

$       

15%

12%

9%

13%

12%

26%

4%

8%

0%

100%

7,813

$    

16%

18%

17%

33%

4%

7%

1%

3%

0%

100%

51,525

$  

Total

RE Total

Total

Total

2006 Original CLTV

Total

Total

38

Consumer Real Estate FICO scores and LTV stratification

2008 vintages

All FICO scores and LTVs

at origination unless otherwise noted and where available.

Traditional mortgage includes CIB mortgage outstandings of $2.1 billion.

The

percentages

in

the

table

above

may

not

add

to

the

totals

due

to

rounding.

Original

FICO

<=60

61-70

71-75

76-80

81-85

86-90

91-95

96-100

100+

Total

Balance

700+

9%

12%

9%

15%

2%

0%

0%

0%

0%

47%

4,371

$    

660-699

4%

7%

5%

8%

1%

0%

0%

0%

0%

25%

2,382

$    

620-699

4%

5%

4%

6%

1%

0%

0%

0%

0%

19%

1,760

$    

<620

2%

3%

2%

2%

0%

0%

0%

0%

0%

9%

845

$       

19%

26%

19%

32%

3%

0%

0%

0%

0%

100%

9,358

$    

700+

18%

11%

10%

32%

1%

2%

1%

2%

0%

78%

3,849

$    

660-699

2%

2%

2%

6%

0%

0%

0%

1%

0%

15%

722

$       

620-699

1%

1%

1%

3%

0%

0%

0%

0%

0%

6%

311

$       

<620

0%

0%

0%

1%

0%

0%

0%

0%

0%

2%

81

$        

21%

15%

13%

42%

2%

3%

2%

3%

0%

100%

4,962

$    

700+

30%

14%

9%

18%

3%

8%

1%

1%

0%

84%

2,466

$    

660-699

3%

2%

1%

3%

0%

1%

0%

0%

0%

11%

308

$       

620-699

1%

1%

1%

1%

0%

0%

0%

0%

0%

4%

115

$       

<620

0%

0%

0%

0%

0%

0%

0%

0%

0%

1%

39

$        

35%

17%

11%

22%

4%

10%

1%

1%

0%

100%

2,928

$    

700+

14%

11%

8%

14%

8%

22%

1%

3%

0%

81%

2,235

$    

660-699

2%

2%

1%

2%

1%

4%

1%

1%

0%

12%

342

$       

620-699

1%

1%

0%

1%

1%

1%

0%

0%

0%

5%

149

$       

<620

0%

0%

0%

0%

0%

0%

0%

0%

0%

1%

41

$        

17%

13%

9%

17%

9%

27%

2%

4%

0%

100%

2,767

$    

22%

20%

15%

31%

4%

6%

1%

1%

0%

100%

20,015

$  

Total

Total

RE Total

Total

Total

2008 Original CLTV

Total

39

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

Wachovia Mortgage

90+ days past due by vintage vs. industry

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2007 -

$33.0 billion Pick-a-Pay / $11.6 billion Traditional

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

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

a unit of First American CoreLogic.

Traditional mortgage includes CIB mortgage outstandings of $2.1 billion.

Month

Month

2006 -

$32.0 billion Pick-a-Pay / $7.3 billion Traditional 

2004 -

$11.4 billion Pick-a-Pay / $4.3 billion Traditional 

2005 -

$24.0 billion Pick-a-Pay / $12.5 billion Traditional 

WB Traditional

Pick-a-Pay

Industry Prime

Industry Alt-A

Industry Subprime

Industry Prime ARM NegAm

40

Pick-a-Pay product advantages diminished by unanticipated

significant deterioration in home prices

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

LoanPerformance, a unit of First American CoreLogic.

Portfolio performance diverging from prime

90+ Days Past Due versus Industry

Pick-a-Pay mortgage delinquencies continued to

outperform industry Alt-A, subprime and prime

negative amortization

-

Lower LTV loans at origination

-

Underwritten to the fully indexed rate

-

Product design minimizes recast risks due to 10-year or

125% recast vs. 5-year and 110% for industry

Estimate the following maximum risk due to 125% balance

recast

(a)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

WB Traditional

Pick-a-Pay

Industry Prime

Industry Alt-A

Industry Subprime

Industry Prime ARM NegAm

(a) As of 6/30/08. Assumes a flat rate environment, all borrowers elect the minimum

payment option 100% of the time, and there is no prepayment of balances.

642.3

1,751

2012

84.4

246

2011

20.7

76

2010

7.5

33

2009

1.8

10

2008

Outstandings

($ in millions)

# of loans

Year

41

30 to 59 Days Past Due

20.0%

30.0%

40.0%

50.0%

Current To 29 Days

0.5%

1.0%

1.5%

2.0%

2.5%

40.0%

50.0%

60.0%

70.0%

60 to 89 Days Past Due

60.0%

70.0%

80.0%

90.0%

90 to 119 Days Past Due

The above roll rates reflect the impact of loan modification programs of $3.3 billion over the last 16 months.

Pick-a-Pay mortgage

Past due roll rates

70.0%

80.0%

90.0%

100.0%

120 to 149 Days Past Due

70.0%

80.0%

90.0%

100.0%

150 to 180+ Days Past Due

42

Pick-a-Pay mortgage nonaccrual loans

($ in millions)

Total $4,386

Charge-offs to date

of $187 million (17%

of orig. balance)

No charge-offs to

date

Initial charge-offs

usually not taken

until 180 DPD

20%

18%

48%

90 -179 DPD

Days Past Due (DPD)

(a) LTV

is

considered

to

be

over

100%

if

the

loan

balance

exceeds

current

estimated

appraised

value

based

on

automated

valuation

methodology

(Veros)

or

updated

appraisal where available, less estimated selling costs.

180 DPD Updated

LTV

100%

180 DPD Updated

LTV > 100%

14%

Loan Modifications

23%

13%

41%

23%

Total $6,714

180 DPD Updated

LTV > 100%

180 DPD Updated

LTV

100%

90 -179 DPD

Loan Modifications

Charge-offs to date

of $454 million (23%

of orig. balance)

No charge-offs

to date

Initial charge-offs

usually not taken

until 180 DPD ($25

million taken to  

date)

1Q08

2Q08

43

Wachovia Pick-a-Pay

June 2008 deferred interest analysis

Deferred

interest

of

$3.9

billion

represented

3.18%

of

the

portfolio

(a)

-

$307 million in deferred interest associated with nonperforming loans; 4.58% of NPAs

Borrowers’

utilization of minimum payment option remains fairly constant

-

65% elected in May 2008 vs. 66% in May 2007

-

51% elected the minimum option in each of the past 6 months

-

40% elected the minimum option in each of the past 12 months

$2.7 billion, or less than 2.3% of borrowers, with a deferred interest balance > 10% of current balance

Current average LTV

(b)

of 92% for loans with deferred interest balance > 10% of current balance

(a) $116 billion in Pick-a-Pay product excludes other mortgage balances of $6.2 billion residing in the Pick-a-Pay portfolio.

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

($ in millions)

2Q08

1Q08

4Q07

Deferred interest balance by LTV

At or below 80%

60% or less

$

343

329

305

60.01% to 70%

456

434

402

70.01% to 80%

1,149

1,090

991

  Subtotal

1,948

1,853

1,698

80.01% to 85%

1,057

1,033

935

85.01% to 90%

614

466

327

Greater than 90%

266

174

129

  Subtotal

1,937

1,673

1,391

    Total deferred interest

$

3,885

3,526

3,089

44

Home equity loans and lines

Traditional home equity

-

45% secured by first lien

-

75% average LTV; 727 average FICO

(a)

-

Portfolio is predominantly customer-relationship

based

> 95% of the portfolio originated through

direct channels

6% of portfolio in CA and 20% in FL

-

NPAs up 22 bps QoQ and net

charge-offs up 38 bps

QoQ driven by increases in stressed geographies

Second lien home equity 60+ days past due are one-

third

of

the

industry

average

(b)

CIB home equity

-

Non-branch originated portfolio had charge-offs of    

23 bps

Implemented additional limitations on utilization

of undrawn equity lines

-

Average line utilization remains relatively low at 35%

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

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

($ in millions)

2Q08

1Q08

2Q07

Traditional home equity

First lien

$

27,827

27,171

28,027

Second lien

33,498

32,456

29,793

Total home equity

$

61,325

59,627

57,820

30+ days past due

as % of loans

1.40

%

1.51

0.92

NPAs

$

563

417

245

as % of loans

0.92

%

0.70

0.42

Net charge-offs

$

130

73

21

as % of avg

loans

0.85

%

0.47

0.14

CIB home equity

First lien

$

-

-

-

Second lien

471

477

-

Total home equity

$

471

477

-

30+ days past due

as % of loans

9.77

%

8.94

-

NPAs

$

78

87

-

as % of loans

16.50

%

18.31

-

Net charge-offs

$

-

-

-

as % of avg

loans

0.23

%

-

-

Total home equity loans

$

61,796

60,104

57,820

45

Wachovia second lien home equity loans and lines

60+ days past due vs. industry

Second Lien Home Equity Loans

Second Lien Home Equity Lines

(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.

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

WB Total General Bank

WB Bank Channel

Industry

(a)

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1.60%

1.80%

2.00%

2.20%

WB Total General Bank

WB Bank Channel

Industry

(a)

46

$0

$5,000

$10,000

$15,000

$20,000

$25,000

$30,000

1Q06

2Q06

3Q06

4Q06

1Q07

2Q07

3Q07

4Q07

1Q08

2Q08

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

Managed auto portfolio

Managed losses of 1.97% down 35 bps QoQ

-

30+ days past due of 2.33% vs. industry forecast

of 3.74%

(b)

Managed NPAs as a % of loans of 24 bps;

down 1 bp

QoQ

-

Roll rates declined throughout quarter

Risk mitigation strategies

Ongoing focus on prime credit originations

-

New originations average FICO score of 672

Average LTV of new originations continued

to decline

Reducing extended term (7-year) loans

-

Goal for 2% of originations from a high of 6.5%

Collection system upgrade resulting in improved

response times

Managed Consumer Auto 30+ Days

Past Due vs. Industry

All FICO scores and LTVs

at origination unless otherwise noted and where available.

(a)

Includes  loans,

NPAs

and net charge-offs from securitizations not included in our reported NPAs and net charge-offs. Please see page 55 for additional information.

(b) Source: Moody’s Economy.com; 2Q08 industry average is a forecast.

($ in millions)

2Q08

1Q08

2Q07

Managed auto

(a)

$

27,528

26,357

23,181

NPAs

(a)

$

66

67

60

as % of loans

0.24

%

0.25

0.26

Net charge-offs

(a)

$

134

151

71

as % of avg

loans

1.97

%

2.32

1.23

47

Commercial Real Estate

Real Estate Financial Services portfolio

Commercial

Real

Estate

outstandings

(a)

up 1% QoQ on slower run-off, funding of existing

construction loans and modest income producing

originations

-

Residential outstandings down 5% QoQ with focus on

up-pricing renewals and restructuring existing facilities

Launched extensive review of income producing

portfolio (retail, office, commercial land and

unsecured) in response to the changing economic

environment

NPAs up $585 million; charge-offs of $283 million

up $157 million to 234 bps vs. 110 bps in 1Q08

-

Increases driven largely by the residential-related

portfolio

Average maturity of 1.8 years

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

of $37.7 billion and $10.7 billion in commercial real estate loans held-for-investment in Investment Banking.

($ in millions)

2Q08

1Q08

2Q07

Residential

$

11,739

12,369

12,151

Income producing

36,616

35,275

24,636

Total REFS

(a)

48,355

47,644

36,787

Residential NPAs

2,008

1,502

126

Income producing NPAs

461

382

44

Total NPAs

$

2,469

1,884

170

as % of loans

5.11

%

3.95

0.46

Residential c/o

$

262

120

2

Income producing c/o

21

6

-

Total net charge-offs

$

283

126

2

as % of avg

loans

2.34

%

1.10

0.01

48

Real Estate Financial Services

Geographic concentrations

Period-end balance sheet as of 6/30/2008.

(a) Includes the Real Estate Financial Services portfolio of $37.7 billion and $10.7 billion in commercial real estate

loans held-for-investment in Investment Banking.

(b) Geographic

concentration

totals

do

not

include

$6.9

billion

in

Commercial

Real

Estate

outstandings

related

to

loans unsecured, secured by non-real estate collateral and loans with undefined property locations. International

includes Europe and Asia.

(c) Residential portfolio geographic concentrations do not include $2.8 billion in Commercial Real Estate outstandings

related to loans unsecured, secured by non-RE collateral and loans with undefined property locations.

$48.4

Billion Commercial Real Estate Portfolio

(a)

Top 10 Geographic Concentrations

(b)

California

$4.3

17%

International

$3.5

10%

North

Carolina

$3.3

9%

Texas

$3.2

8%

Virginia

$2.6

7%

Other Remaining

States

$10.3

Georgia

$2.7

Florida

$7.1

25%

6%

7%

New Jersey

$1.6

4%

New York

$1.8

4%

Pennsylvania

$1.4

3%

Residential Portfolio

Top 5 Geographies

By Asset Type

Single Family

State

O/

S $

O/S %

Florida

$438

18%

Georgia

415

17%

Pennsylvania

327

13%

North Carolina

313

13%

Texas

210

8%

All Other

788

31%

Total

2,492

100%

Land

State

O/

S $

O/S %

Florida

$1,045

26%

North Carolina

643

16%

Georgia

546

14%

South Carolina

353

9%

Virginia

348

8%

All Other

1,092

27%

Total

4,027

100%

Condo

State

O/S $

O/S %

Florida

$1,046

42%

New York

235

9%

Virginia

208

8%

California

126

5%

New Jersey

126

5%

All Other

777

31%

Total

2,518

100%

(c)

49

Real Estate Financial Services

Well diversified loan portfolio

$48.4

Billion Commercial Real Estate

Portfolio

(b)

Office

17%

Retail

13%

Multi-Family

13%

Industrial

5%

Income

Producing

Land

7%

Lodging

Other

Single

Family

7%

Residential

Improved

Land

7%

Condos

6%

Residential

Unimproved

Land

2%

Non-RE

Collateral

5%

76% income producing

24% residential-related

-

Average maturity of 0.9 years

Homebuilders -

$4.2 billion

-

Regional/small builder portfolio is largely recourse

based with disciplined inventory controls and           

1–2 year terms

-

Focus on strong sponsorship/management

Land -

$4.8 billion

-

Primarily originated with substantial equity cushion

and recourse to borrowers

Condos -

$2.8 billion

20%

of outstandings currently have an interest

reserve

associated

with

the

loan

(a)

-

If sources of cash to make loan payments cannot be

identified, loan is placed on NPA even if no default has

occurred; interest reserves on NPAs are not funded

on

defaulted loans

(a) Based on the Real Estate Financial Services portfolio of $37.7 billion.

(b) Includes the Real Estate Financial Services portfolio of $37.7 billion and $10.7 billion in commercial real estate loans held-for-investment in Investment Banking.

Period-end balance sheet as of 6/30/2008.

6%

5%

3%

Mixed

Use

Unsecured

Real Estate

4%

50

Goodwill impairment

Background

Goodwill impairment testing required annually, or more frequently if events or circumstances indicate

there may be impairment

Impairment testing is performed at the sub-segment level (“reporting unit”); testing is not performed on an

individual acquisition basis

Goodwill impairment is a two-step test

-

Step 1: compare fair value of reporting unit to carrying value

-

Step 2: calculate implied fair value of goodwill as if reporting

unit is purchased at Step 1 fair value (determined in the

same manner as goodwill in a business combination)

A discounted cash flow analysis is used to estimate fair value of reporting units

Total of all reporting unit fair values is compared for reasonableness to Wachovia’s market capitalization

plus a control premium

If

Step

1

fair

value

is

greater

than

carrying

value,

there

is

no

indication

of

impairment

and

Step

2

is

not

performed.  If Step 1 fair value is less than carrying value, then Step 2 is performed.

Step 2 involves a process similar to business combination accounting

-

As if a reporting unit is purchased at the Step 1 fair value

-

Involves assigning fair values to all assets, liabilities and intangibles

-

Result is implied fair value of goodwill

If Step 2 implied fair value of goodwill is less than actual goodwill, impairment is recorded for the

difference

For segment reporting purposes, no goodwill is recorded in our segments

-

Allocation is for purposes of impairment testing

-

Allocated as of acquisition date, adjusted for transfers or sales

51

Goodwill impairment

Test results

Performed Step 1 analysis on all reporting units

Performed Step 2 impairment measurement on four reporting units

Goodwill impairment testing as of June 30, 2008, resulted in $6.1 billion (pre-tax and after-tax) of impairment

across three reporting units

Driver of impairment in three reporting units is decrease in stock price / market capitalization

No impairment in General Bank Retail where the Pick-a-Pay portfolio resides due to value of retail banking

franchise

($ in milllions)

CIB Corporate 

Lending

CIB

Investment

Banking

General Bank

Commercial

General Bank           

Retail and

Small Business

Assigned goodwill

2,937

$       

597

7,086

23,980

Impairment

(2,937)

(597)

(2,526)

-

Remaining goodwill

-

$           

-

4,560

23,980

52

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.

53

Notes on non-GAAP financial measures

In addition to results in accordance with GAAP, this presentation includes certain non-GAAP financial measures, which exclude certain items from GAAP numbers, such as the

goodwill impairment charge, the notable items described on pages

2 and 3, and Wachovia’s mortgage results from the General Bank’s results as described on page 7.  In

addition, this

presentation

includes

certain

information

regarding

Wachovia’s

auto

loan

portfolio

on

a

“managed”

basis,

which

is

a

non-GAAP

financial

measure

that

combines auto loans reported on-balance sheet on a GAAP basis with auto loans that have been securitized and are off-balance sheet as shown on page 46. 

The foregoing non-GAAP financial measures are reconciled to GAAP on pages 2 and 3 or as set forth below.  Wachovia believes that 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.

Expenses excluding legal reserves and severance

2Q08 vs

($ in millions)

2Q08

1Q08

1Q08

Other expense

As reported

5,876

$        

5,097

15%

Legal reserves

(590)

-

Severance

(44)

(12)

  Other expense excluding legal reserves and severance

5,242

5,085

3%

Other expense

As reported

5,876

5,097

15%

Legal reserves

(590)

-

  Other expense excluding legal reserves

5,286

$        

5,097

4%

Fees excluding notable items

2Q08 vs

($ in millions)

2Q08

1Q08

1Q08

Fee and other income

As reported

3,165

$        

2,777

14%

Market disruption-related losses

936

2,287

Discretionary planned securities sales

391

-

FAS 157/159 net gains

-

(481)

Visa IPO

-

(225)

  Total fees excluding notable items

4,492

$        

4,358

3%

54

Notes on non-GAAP financial measures

General Bank results excluding mortgage

($ in millions)

2Q08

1Q08

2Q07

Net interest income

GBG

3,671

$       

3,445

3,372

Mortgage

(837)

(752)

(738)

Total net interest income General Bank results excluding mortgage

2,834

2,693

2,634

Service charges

GBG

597

572

565

Mortgage

-

-

-

Total service charges General Bank results excluding mortgage

597

572

565

Interchange income

GBG

209

186

174

Mortgage

-

-

-

Total interchange income General Bank results excluding mortgage

209

186

174

Mortgage banking fees

GBG

77

69

67

Mortgage

(77)

(69)

(67)

Total mortgage banking fees General Bank results excluding mortgage

-

-

-

All other fees/income

GBG

117

153

129

Mortgage

(13)

(40)

(27)

Total all other fees/income General Bank results excluding mortgage

104

113

102

Fee and other income

GBG

1,000

980

935

Mortgage

(90)

(108)

(94)

Total fee and other income General Bank results excluding mortgage

910

872

841

Total revenue

GBG

4,728

4,480

4,363

Mortgage

(914)

(854)

(825)

Total revenue General Bank results excluding mortgage

3,814

3,626

3,538

Provision

GBG

919

569

154

Mortgage

(526)

(252)

(9)

Total provision General Bank results excluding mortgage

393

317

145

Expense

GBG

2,050

2,038

1,922

Mortgage

(356)

(354)

(330)

Total expense General Bank results excluding mortgage

1,694

1,684

1,592

Segment earnings

GBG

1,117

1,189

1,453

Mortgage

(20)

(157)

(310)

Total segment earnings General Bank results excluding mortgage

1,097

$       

1,032

1,143

55

Notes on non-GAAP financial measures

Managed Auto Portfolio

($ in millions)

2Q08

1Q08

2Q07

Managed auto

On-balance sheet

25,870

$   

24,349

19,925

Securitized

1,658

2,008

3,256

Total managed auto

27,528

26,357

23,181

NPAs

On-balance sheet

61

61

53

Securitized

5

6

7

Total NPAs

66

67

60

Net charge-offs

On-balance sheet

129

145

66

Securitized

5

6

5

Total net charge-offs

134

151

71

Average loans

On-balance sheet

25,409

23,605

19,632

Securitized

1,887

2,532

3,402

Total average loans

27,296

26,137

23,034

NPAs

as a % of loans

On-balance sheet

0.24

%

0.25

0.27

Securitized

0.30

0.31

0.21

Total NPAs

as a % of loans

0.24

0.25

0.26

Net charge-offs as a % of average loans

On-balance sheet

2.03

2.46

1.33

Securitized

1.06

0.97

0.65

Total net charge-offs as a % of average loans

1.97

%

2.32

1.23

Managed consumer auto 30+ days past due loans

On-balance sheet

600

$        

499

398

Securitized

42

41

49

Total managed consumer auto 30+ days past due loans

642

$        

540

447

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

On-balance sheet

2.32

%

2.05

2.00

Securitized

2.53

2.02

1.50

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

2.33

%

2.05

1.93

$   

EX-99.C

Exhibit (99)(c)

WACHOVIA SECOND QUARTER 2008

QUARTERLY EARNINGS REPORT

JULY 22, 2008

TABLE OF CONTENTS

Earnings Summary	1
Other Financial Measures	3
Fee and Other Income	4
Noninterest Expense	6
Balance Sheet	7
Asset Quality	10
Summary Operating Results	15
General Bank	18
Wealth Management	21
Corporate and Investment Bank	22
Capital Management	27
Parent	30
Merger-Related And Restructuring Expenses	31
Explanation of Our Use of Certain Non-GAAP Financial Measures	32
Reconciliation Of Certain Non-GAAP Financial Measures	33
Cautionary Statement	37

READERS ARE ENCOURAGED TO REFER TO WACHOVIA’S RESULTS FOR THE QUARTER ENDED MARCH 31, 2008, PRESENTED IN ACCORDANCE WITH U.S. GENERALLY ACCEPTED ACCOUNTING PRINCIPLES (“GAAP”), WHICH MAY BE FOUND IN WACHOVIA’S FIRST QUARTER REPORT ON FORM 10-Q.

ALL NARRATIVE COMPARISONS ARE WITH FIRST QUARTER 2008 UNLESS OTHERWISE NOTED.

THE INFORMATION CONTAINED HEREIN INCLUDES CERTAIN NON-GAAP FINANCIAL MEASURES. PLEASE REFER TO PAGES 32-36 FOR AN IMPORTANT EXPLANATION OF OUR USE OF NON-GAAP MEASURES AND RECONCILIATION OF THOSE NON-GAAP MEASURES TO GAAP.

Wachovia 2Q08 Quarterly Earnings Report

Earnings Summary

Earnings Reconciliation

	2008									2007						2Q08 EPS
	Second Quarter					First Quarter				Fourth Quarter		Third Quarter		Second Quarter
(After-tax in millions, except per share data)	Amount			EPS		Amount		EPS		Amount	EPS	Amount	EPS	Amount	EPS	vs 1Q08		vs 2Q07
Net income (loss) available to common stockholders (GAAP)	$	(8,855	)	(4.20	)	(707	)	(0.36	)	51	0.03	1,618	0.85	2,341	1.22	—	%	—
Discontinued operations, net of income taxes		—		—		—		—		142	0.07	88	0.05	—	—	—		—
Net goodwill impairment		6,056		2.87		—		—		—	—	—	—	—	—	—		—
Net merger-related and restructuring expenses		128		0.06		123		(0.06	)	108	0.05	22	—	20	0.01	—		—
Earnings excluding goodwill impairment, merger-related and restructuring expenses, and discontinued operations	$	(2,671	)	(1.27	)	(584	)	(0.30	)	301	0.15	1,728	0.90	2,361	1.23	—		—

Earnings Summary

	2008					2007					2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions, except per share data)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Net interest income (Tax-equivalent)	$	4,344		4,805		4,674		4,584		4,487	(10	)%	(3	)
Fee and other income		3,165		2,777		2,744		2,933		4,240	14		(25	)
Total revenue (Tax-equivalent)		7,509		7,582		7,418		7,517		8,727	(1	)	(14	)
Provision for credit losses		5,567		2,831		1,497		408		179	97		—
Other noninterest expense		5,876		5,097		5,488		4,397		4,755	15		24
Merger-related and restructuring expenses		251		241		187		36		32	4		—
Goodwill impairment		6,060		—		—		—		—	—		—
Other intangible amortization		97		103		111		92		103	(6	)	(6	)
Total noninterest expense		12,284		5,441		5,786		4,525		4,890	—		—
Minority interest in income of consolidated subsidiaries		97		155		107		189		139	(37	)	(30	)
Income (loss) from continuing operations before income taxes (benefits) (Tax-equivalent)		(10,439	)	(845	)	28		2,395		3,519	—		—
Income taxes (benefits) (Tax-equivalent)		(1,777	)	(181	)	(165	)	689		1,178	—		—
Income (loss) from continuing operations		(8,662	)	(664	)	193		1,706		2,341	—		—
Discontinued operations, net of income taxes		—		—		(142	)	(88	)	—	—		—
Dividends on preferred stock		193		43		—		—		—	—		—
Net income (loss) available to common stockholders	$	(8,855	)	(707	)	51		1,618		2,341	—	%	—
Net interest margin		2.58	%	2.92		2.88		2.92		2.96	—	%	—
Effective tax rate (Tax-equivalent) (a) (b)		17.03		21.38		127.17		28.38		33.51	—		—
Tier 1 capital ratio (c)		8.0		7.4		7.4		7.1		7.5	—		—
Tangible capital ratio (excluding FAS 115/133/158)		5.1		4.6		4.5		4.6		4.8	—		—
Leverage ratio (c)		6.6	%	6.2		6.1		6.1		6.2	—		—
Average diluted common shares (In millions)		2,119		1,977		1,983		1,910		1,919	7	%	10

(a) 4Q07 and 3Q07 include taxes on discontinued operations.

(b) The tax-equivalent tax rate applies to fully tax-equivalized revenues.

(c) The second quarter of 2008 is based on estimates.

2Q08 vs. 1Q08

• Net loss of $8.7 billion; net loss of $8.9 billion after preferred dividends, down $8.0 billion and down $11.0 billion from 2Q07; net loss per share of $4.20 down $3.84

— Loss of $2.7 billion, or $1.27 per share, excluding goodwill impairment and merger-related and restructuring expenses

— Results reflect a $6.1 billion goodwill impairment charge, $4.2 billion loan loss reserve build including $3.3 billion for the Pick-a-Pay portfolio, $975 million SILO lease charge, $936 million in market disruption-related losses, $590 million in legal reserves and $391 million of losses related to planned discretionary security sales

• Revenues of $7.5 billion down $73 million from 1Q08 which included $481 million of gains relating to adoption of FAS 157/159 and a $225 million Visa IPO gain; down $1.2 billion from 2Q07 despite the addition of A.G. Edwards (AGE)

— Net interest income declined $461 million, or 10%, as the benefits of our liability sensitive rate position, strong earning asset growth, 2Q08 equity issuance, improving loan spreads and low-cost core deposit growth were more than offset by the $975 million SILO lease charge, higher wholesale funding costs and increases in nonaccrual loans; net interest income up $514 million, or 11% excluding the effect of the SILO charge

Page - 1

Wachovia 2Q08 Quarterly Earnings Report

• Net interest margin decreased 34 bps to 2.58% as the benefit of our liability sensitive rate position, equity issuances and improving loan and deposit spreads was more than offset by the SILO charge, higher wholesale funding costs, including the effects of increased liquidity, and rising nonaccrual loans; net interest margin up 23 bps to 3.15% excluding the effect of the SILO charge

— Fee income increased $388 million on a $1.4 billion decline in market disruption-related losses as well as growth in service charges, other banking fees and advisory and underwriting, partially offset by a decline of $481 million relating to the 1Q08 FAS 157/159 adoption, $391 million of losses relating to planned discretionary securities sales, a $225 million decline relating to the 1Q08 gain associated with the Visa IPO as well as weaker fiduciary and asset management fees

• Other noninterest expense increased $779 million, or 15%, largely reflecting a $590 million increase in legal reserves as well as higher revenue-based incentives, non-merger severance costs and merit increases in salaries and benefits expense despite a $109 million reduction in retirement-eligible employee stock compensation expense

• Average loans up $10.8 billion, or 2%, on growth of 4% in commercial and 1% in consumer; up 13% from 2Q07

— Strength in middle market and business banking, foreign and commercial real estate including the $1.1 billion average net effect of transfers from held-for-sale

— Consumer growth driven by auto and student

• Average core deposits decreased 1%; up 3% from 2Q07

— Strong momentum in low-cost core reflecting retail brokerage growth from AGE as well as strong sales in DDAs and savings, partially offset by declines in CDs driven by repositioning of the portfolio following the final 1Q08 Golden West system conversion

• Provision expense of $5.6 billion increased $2.7 billion largely reflecting increased risk in the consumer real estate, commercial and auto portfolios as well as higher charge-offs

— Net charge-offs of $1.3 billion, or 110 bps of loans, reflecting higher losses in consumer real estate, commercial and auto

• Tier 1 capital ratio of 8.0%

• Average diluted shares of 2,119 million up 142 million reflecting the addition of 168 million common shares issued in April partially offset by the net effect of employee stock option activity

Page - 2

Wachovia 2Q08 Quarterly Earnings Report

Other Financial Measures

Performance Highlights

	2008					2007					1Q08 vs 4Q07		1Q08 vs 1Q07
(Dollars in millions, except per share data)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Earnings excluding goodwill impairment, merger-related and restructuring expenses, and discontinued operations (a)(b)
Net income (loss)	$	(2,671	)	(584	)	301		1,728		2,361	—	%	—
Return on average assets		(1.25	)%	(0.28	)	0.16		0.94		1.34	—		—
Return on average common stockholders’ equity		(14.56	)	(3.14	)	1.62		9.81		13.66	—		—
Overhead efficiency ratio (Tax-equivalent)		79.55		68.58		75.48		59.73		55.65	—		—
Overhead efficiency ratio excluding brokerage (Tax-equivalent)		80.33	%	65.48		74.54		56.82		52.04	—		—
Operating leverage (Tax-equivalent)	$	(847	)	563		(1,208	)	(843	)	210	—	%	—
Earnings excluding goodwill impairment, merger-related and restructuring expenses, other intangible amortization and discontinued operations (a)(b)
Net income (loss)	$	(2,605	)	(520	)	366		1,787		2,427	—	%	—
Dividend payout ratio on common shares		(30.49	)%	(246.15	)	355.56		68.09		44.09	—		—
Return on average tangible assets		(1.29	)	(0.26	)	0.20		1.03		1.47	—		—
Return on average tangible common stockholders’ equity		(36.42	)	(7.07	)	5.05		23.88		33.57	—		—
Overhead efficiency ratio (Tax-equivalent)		78.26		67.22		73.97		58.51		54.47	—		—
Overhead efficiency ratio excluding brokerage (Tax-equivalent)		78.55	%	63.59		72.43		55.32		50.61	—		—
Operating leverage (Tax-equivalent)	$	(853	)	554		(1,187	)	(855	)	197	—	%	—
Other financial data
Net interest margin		2.58	%	2.92		2.88		2.92		2.96	—		—
Fee and other income as % of total revenue		42.15		36.62		36.99		39.02		48.58	—		—
Effective tax rate (c)		17.46		26.02		122.05		27.33		32.78	—		—
Effective tax rate (Tax-equivalent) (c)		17.03	%	21.38		127.17		28.38		33.51	—		—
Asset quality
Allowance for loan losses as % of loans, net		2.20	%	1.37		0.98		0.78		0.79	—		—
Allowance for loan losses as % of nonperforming assets		90		78		84		115		157	—		—
Allowance for credit losses as % of loans, net		2.24		1.41		1.02		0.82		0.83	—		—
Net charge-offs as % of average loans, net		1.10		0.66		0.41		0.19		0.14	—		—
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		2.41	%	1.70		1.14		0.66		0.49	—		—
Capital adequacy
Tier 1 capital ratio (d)		8.0	%	7.4		7.4		7.1		7.5	—		—
Tangible capital ratio (including FAS 115/133/158)		4.7		4.3		4.3		4.2		4.3	—		—
Tangible capital ratio (excluding FAS 115/133/158)		5.1		4.6		4.5		4.6		4.8	—		—
Leverage ratio (d)		6.6	%	6.2		6.1		6.1		6.2	—		—
Other
Average basic common shares (In millions)		2,111		1,963		1,959		1,885		1,891	8	%	12
Average diluted common shares (In millions)		2,119		1,977		1,983		1,910		1,919	7	%	10
Actual common shares (In millions) (e)		2,159		1,992		1,980		1,901		1,903	8		13
Dividends paid per common share	$	0.38		0.64		0.64		0.64		0.56	(41	)	(33	)
Book value per common share (e)		30.37		36.24		37.66		36.90		36.40	(16	)	(17	)
Common stock price		15.53		27.00		38.03		50.15		51.25	(42	)	(70	)
Market capitalization (e)	$	33,527		53,782		75,302		95,326		97,530	(38	)	(66	)
Common stock price to book value (e)		51	%	75		101		136		141	(32	)	(64	)
FTE employees		119,952		120,378		121,890		109,724		110,493	—		9
Total financial centers/brokerage offices		4,820		4,850		4,894		4,167		4,135	(1	)	17
ATMs		5,277		5,308		5,139		5,123		5,099	(1	)%	3

(a) See tables on page 1, and on pages 33 through 36 for reconciliation to earnings prepared in accordance with GAAP.

(b) See page 1 for the most directly comparable GAAP financial measure and pages 33 through 36 for reconciliation to earnings prepared in accordance with GAAP.

(c) The tax-equivalent tax rate applies to fully tax-equivalized revenues.

(d) The second quarter of 2008 is based on estimates.

(e) Includes restricted stock for which the holder receives dividends and has full voting rights.

Page - 3

Wachovia 2Q08 Quarterly Earnings Report

Fee and Other Income

Fee and Other Income

	2008					2007					2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Service charges	$	709		676		716		689		667	5	%	6
Other banking fees		518		498		497		471		449	4		15
Commissions		910		914		970		600		649	—		40
Fiduciary and asset management fees		1,355		1,439		1,436		1,029		1,015	(6	)	33
Advisory, underwriting and other investment banking fees		280		261		249		393		454	7		(38	)
Trading account profits (losses)		(510	)	(308	)	(524	)	(301	)	195	66		—
Principal investing		136		446		41		372		298	(70	)	(54	)
Securities gains (losses)		(808	)	(205	)	(320	)	(34	)	23	—		—
Other income		575		(944	)	(321	)	(286	)	490	—		17
Total fee and other income	$	3,165		2,777		2,744		2,933		4,240	14	%	(25	)

KEY POINTS

• Fee and other income of $3.2 billion increased $388 million, or 14%, from 1Q08 and decreased $1.1 billion, or 25%, from 2Q07

— 2Q08 fees grew $388 million on a $1.4 billion decline in market disruption-related losses as well as strength in service charges, other banking fees, and advisory and underwriting, partially offset by securities losses on planned discretionary securities sales, weaker fiduciary and asset management fees and 1Q08 gains related to the adoption of FAS 157/159 and the Visa IPO

• Fees increased $1.5 billion excluding the $481 million FAS 157/159 adoption effect, $391 million of losses relating to planned discretionary securities sales and $225 million Visa IPO gain

— Results declined from 2Q07 as higher fiduciary and asset management fees and commissions, reflecting merger activity, and growth in interchange fees and service charges were more than offset by market disruption-related losses, lower advisory and underwriting fees and reduced principal investing gains

• Service charges increased 5% on 4% growth in consumer from seasonally low 1Q08 levels despite the negative effect of the economic stimulus package and 6% growth in commercial driven by strong treasury services sales; up 6% from 2Q07 driven by a 12% increase in commercial and 3% increase in consumer

• Other banking fees rose 4% on higher interchange fees, including the effect of the stimulus package and modest seasonality, somewhat offset by a decline in mortgage banking; increased 15% from 2Q07 largely on mortgage banking reflecting higher marketable origination volumes and loan administration income as well as growth in interchange fees

• Commissions were relatively flat on stable retail brokerage transaction revenue and insurance commissions

• Fiduciary and asset management fees declined 6% as continued positive inflows in retail brokerage managed account assets were more than offset by the effect of lower asset valuations; results increased $340 million, or 33%, from 2Q07 on the addition of AGE and strength in retail brokerage managed account fees

• Advisory, underwriting and other investment banking fees increased 7% from 1Q08 on strength in high grade, leveraged finance and structured products, partially offset by a decline in advisory revenue; results decreased 38% from strong 2Q07 levels driven by the market disruption

• Trading account losses of $510 million increased $202 million and included market disruption-related losses of $835 million

— Results included $372 million in market disruption-related valuation losses relating to the ineffectiveness of economic hedges that have been largely unwound and $89 million of securities impairments relating to the liquidation of an Evergreen fund

• Principal investing results of $136 million decreased $310 million from 1Q08, which reflected the $466 million benefit from the adoption of FAS 157; down $162 million from 2Q07

• Securities losses were $808 million in 2Q08 compared to losses of $205 million in 1Q08 driven by $415 million of market disruption-related losses as well as $391 million of losses relating to planned discretionary securities sales

— 1Q08 included the $225 million benefit from the Visa IPO gain

Page - 4

Wachovia 2Q08 Quarterly Earnings Report

Other Income

	2008					2007					2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Consumer loan-related sale/ securitization activity	$	20		13		(115	)	4		45	54	%	(56	)
Commercial mortgage-related sale/ securitization activity		(90	)	(246	)	(365	)	(381	)	142	(63	)	—
Other income		645		(711	)	159		91		303	—		—
Total other income (loss)	$	575		(944	)	(321	)	(286	)	490	—	%	17

• Other income results include:

— Market disruption-related gains of $438 million from the resolution of certain leveraged finance exposures vs. losses of $792 million in 1Q08

— $325 million increase relating to certain corporate investments largely reflecting the 1Q08 valuation loss on assets related to our bank-owned life insurance (BOLI) portfolio of $314 million, and a $70 million decrease in affordable housing investments

— $156 million improvement in commercial mortgage-related sales/securitization activity largely reflecting a $147 million reduction in market disruption-related losses

— $7 million increase in consumer loan sales/securitization activity driven by $38 million lower market disruption-related losses, partially offset by lower securitization activity

Market Disruption-Related Losses, Net

	2008											2007
	Second Quarter									First Quarter		2nd Half		Cumulative
(Pre-tax dollars in millions)	Trading profits (losses)			Securities gains (losses)		Other Income		Total		Total		Total		Total
Corporate and Investment Bank
ABS CDO and other subprime-related	$	(106	)	(132	)	0		(238	)	(339	)	(1,048	)	(1,625	)
Commercial mortgage (CMBS)		(116	)	(2	)	(91	)	(209	)	(521	)	(1,088	)	(1,818	)
Consumer mortgage		(42	)	0		(26	)	(68	)	(251	)	(205	)	(524	)
Leveraged finance		(336	)	0		438		102		(309	)	(179	)	(386	)
Other		(141	)	(11	)	0		(152	)	(144	)	(50	)	(346	)
Total		(741	)	(145	)	321		(565	)	(1,564	)	(2,570	)	(4,699	)
Capital Management
Impairment losses		(94	)	(24	)	0		(118	)	0		(57	)	(175	)
Parent
Impairment losses/other		0		(246	)	(7	)	(253	)	(723	)	(94	)	(1,070	)
Total, net		(835	)	(415	)	314		(936	)	(2,287	)	(2,721	)	(5,944	)
Discontinued operations (BluePoint)	$	0		0		0		0		0		(330	)	(330	)

Page - 5

Wachovia 2Q08 Quarterly Earnings Report

Noninterest Expense

Noninterest Expense

	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Salaries and employee benefits	$	3,435	3,260	3,468	2,628	3,122	5	%	10
Occupancy		377	379	375	325	331	(1	)	14
Equipment		317	323	334	283	309	(2	)	3
Marketing		95	97	80	74	78	(2	)	22
Communications and supplies		184	186	191	176	178	(1	)	3
Professional and consulting fees		218	196	271	194	205	11		6
Sundry expense		1,250	656	769	717	532	91		—
Other noninterest expense		5,876	5,097	5,488	4,397	4,755	15		24
Merger-related and restructuring expenses		251	241	187	36	32	4		—
Goodwill impairment		6,060	—	—	—	—	—		—
Other intangible amortization		97	103	111	92	103	(6	)	(6	)
Total noninterest expense	$	12,284	5,441	5,786	4,525	4,890	—	%	—

• Other noninterest expense increased $779 million driven by higher legal reserves, revenue-based incentives, annual merit increases, non-merger severance expense and professional and consulting fees

— 2Q08 results included $44 million of non-merger severance costs and $40 million associated with growth initiatives including de novo/branch consolidations and Western expansion and a $21 million increase due to annual merit increases

— Increased 3% excluding higher legal reserves and the increase in non-merger severance expense

• Salaries and employee benefits expense increased $175 million driven by higher revenue-based incentives, annual merit increases and non-merger severance expenses, partially offset by a $109 million reduction in retirement-eligible employee stock compensation expense and reduced benefits expense; up 10% from 2Q07 largely due to merger activity

• Professional and consulting fees rose $22 million reflecting higher data processing, legal and management consulting, and professional expense

• Sundry expense increased $594 million driven by $590 million in legal reserves relating to several previously disclosed matters

Page - 6

Wachovia 2Q08 Quarterly Earnings Report

Balance Sheet

Average Balance Sheet Data

	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Assets
Trading assets	$	43,575	44,655	37,694	38,737	35,165	(2	)%	24
Securities		116,504	110,401	115,436	111,424	108,433	6		7
Commercial loans, net
General Bank		71,979	69,515	67,252	65,841	64,449	4		12
Corporate and Investment Bank		104,137	99,438	91,382	82,901	76,672	5		36
Other		30,088	29,625	29,530	25,930	24,391	2		23
Total commercial loans, net		206,204	198,578	188,164	174,672	165,512	4		25
Consumer loans, net		270,530	267,358	261,641	255,129	255,745	1		6
Total loans, net		476,734	465,936	449,805	429,801	421,257	2		13
Loans held for sale		9,141	11,592	18,998	20,209	17,644	(21	)	(48	)
Other earning assets (a)		29,135	26,449	28,207	28,602	23,479	10		24
Total earning assets		675,089	659,033	650,140	628,773	605,978	2		11
Cash		11,472	11,645	12,028	11,134	11,533	(1	)	(1	)
Other assets		109,876	112,915	101,319	89,097	87,262	(3	)	26
Total assets	$	796,437	783,593	763,487	729,004	704,773	2	%	13
Liabilities and Stockholders’ Equity
Core interest-bearing deposits	$	332,688	338,181	332,148	320,729	316,223	(2	)%	5
Foreign and other time deposits		44,878	48,840	47,523	37,098	29,922	(8	)	50
Total interest-bearing deposits		377,566	387,021	379,671	357,827	346,145	(2	)	9
Short-term borrowings		64,005	58,538	60,755	65,346	58,020	9		10
Long-term debt		177,473	165,540	158,704	151,226	143,504	7		24
Total interest-bearing liabilities		619,044	611,099	599,130	574,399	547,669	1		13
Noninterest-bearing deposits		57,982	56,332	57,895	58,280	62,273	3		(7	)
Other liabilities		37,671	37,415	32,476	26,468	25,514	1		48
Total liabilities		714,697	704,846	689,501	659,147	635,456	1		12
Stockholders’ equity		81,740	78,747	73,986	69,857	69,317	4		18
Total liabilities and stockholders’ equity	$	796,437	783,593	763,487	729,004	704,773	2	%	13
(a)    Includes interest-bearing bank balances, federal funds sold, securities purchased under resale agreements and margin loans.
Memoranda
Low-cost core deposits	$	277,091	270,858	262,982	256,535	257,812	2	%	7
Other core deposits		113,579	123,655	127,061	122,474	120,684	(8	)	(6	)
Total core deposits	$	390,670	394,513	390,043	379,009	378,496	(1	)%	3

KEY POINTS

• Trading assets decreased $1.1 billion, or 2%, largely reflecting sales and the effect of market disruption related losses; average VAR of $66 million essentially flat with 1Q08

• Securities increased $6.1 billion, or 6%, largely reflecting the $3.9 billion average effect of consumer real estate securitizations from the loan portfolio and held for sale as well as purchases; the average duration of the securities portfolio increased to 4.1 years from 3.5 years in 1Q08

• Commercial loans increased $7.6 billion, or 4%, on strength in middle market and business banking, structured credit products and large corporate

— Results reflect the average net effect of transfers from held for sale of $633 million in foreign and commercial real estate and $433 million in commercial loans somewhat offset by the $421 million average effect of the SILO lease charge

— Period-end commercial loans grew $4.9 billion to $216.6 billion; up $5.9 billion excluding the $975 million notional effect of the SILO lease charge

• Consumer loans increased $3.2 billion, or 1%, reflecting growth in real estate secured, auto and student, partially offset by the $715 million average net effect of transfers to held for sale and the $2.5 billion average effect of on-balance sheet real estate securitizations; period end consumer loans rose $2.8 billion

• Loans held for sale declined $2.5 billion on consumer and commercial real estate sales and securitizations as well as reduced loan syndication positions, partially offset by the transfer of $715 million of consumer loans from the loan portfolio driven by real estate and auto as well as origination activity driven by credit card

• Other earning assets grew $2.7 billion, or 10%, on higher Fed Funds sold and interest bearing bank balances

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Wachovia 2Q08 Quarterly Earnings Report

• Total average earning assets rose $16.1 billion, or 2%, and 11% from 2Q07

• Core deposits decreased $3.8 billion, or 1%, as strength in retail brokerage, DDAs and savings was more than offset by declines in CDs, reflecting planned portfolio repositioning, and interest checking; up 3% from 2Q07

• Average short-term borrowings increased $5.5 billion, or 9%, from 1Q08

• Average long-term debt increased $11.9 billion, or 7%, driven by higher FHLB borrowings and the issuance of $7.3 billion in corporate debt

Average Consumer Loans - Total Corporation

	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Mortgage	$	51,784	52,590	50,480	48,606	46,198	(2	)%	12
Pick-a-Payment mortgage		122,164	120,963	120,235	118,602	117,673	1		4
Home equity loans		28,820	30,560	31,266	31,334	31,885	(6	)	(10	)
Home equity lines		28,986	27,279	25,912	24,814	26,340	6		10
Student		9,887	9,155	8,073	7,299	8,850	8		12
Auto and other vehicle		26,464	24,554	23,383	22,161	21,016	8		26
Revolving		1,793	1,714	1,670	1,647	3,067	5		(42	)
Other consumer loans		632	543	622	666	716	16		(12	)
Total consumer loans	$	270,530	267,358	261,641	255,129	255,745	1	%	6

THE FOLLOWING TABLES PROVIDE ADDITIONAL PERIOD-END DETAIL ON OUR BALANCE SHEET.

Period-End Loans Held for Sale

	2008					2007
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Core business activity
Core business activity, beginning of period	$	8,406		15,094		17,646		15,696		15,030
Originations/purchases		8,069		8,144		8,160		13,007		22,671
Transfers to (from) loans held for sale, net		373		(6,801	)	(1,278	)	2,162		(71	)
Allowance for loan losses related to loans		—		—		—		(57	)	—
Lower of cost or market value adjustments (a)		(87	)	(364	)	(223	)	(249	)	(91	)
Market value adjustments for fair value option loans		(47	)	42		—		—		—
Performing loans sold or securitized		(8,796	)	(7,355	)	(8,992	)	(11,606	)	(20,910	)
Other, principally payments		(94	)	(354	)	(219	)	(1,307	)	(933	)
Core business activity, end of period		7,824		8,406		15,094		17,646		15,696
Portfolio management activity
Portfolio management activity, beginning of period		3,023		1,678		3,785		2,037		2
Originations/purchases		—		83		—		—		—
Transfers to (from) loans held for sale, net (b)		(19	)	2,317		137		1,831		2,046
Lower of cost or market value adjustments (a)		26		(31	)	(30	)	(6	)	(10	)
Performing loans sold		(2,373	)	(990	)	(2,078	)	—		—
Other, principally payments		(51	)	(34	)	(136	)	(77	)	(1	)
Portfolio management activity, end of period		606		3,023		1,678		3,785		2,037
Total loans held for sale (c)	$	8,430		11,429		16,772		21,431		17,733

^(a) Lower of cost or market value adjustments exclude amounts related to unfunded commitments. Market disruption-related recoveries on unfunded commitments amounted to $438 million in the second quarter of 2008. Market disruption-related write-downs on unfunded commitments amounted to $729 million, $78 million and $311 million in the first quarter of 2008 and in the fourth and third quarters of 2007, respectively.

^(b) Includes $1.8 billion in third quarter 2007 in connection with the consolidation of a structured lending vehicle; first quarter of 2008 and fourth quarter of 2007 include funding of the structured lending vehicle’s commitments amounting to $54 million and $159 million, respectively.

^(c) Nonperforming assets included in loans held for sale at June 30 and March 31, 2008 and at December 31, September 30 and June 30, 2007, were $63 million, $5 million, $62 million, $59 million and $42 million, respectively.

• Period-end loans held for sale of $8.4 billion decreased $3.0 billion, or 26%

— Loans held for sale related to core business activity decreased $582 million primarily due to a $527 million reduction in loan syndication positions and a net $356 million in sales driven by commercial real estate; consumer activity included a net $373 million transfer of loans into held for sale driven by real estate as well as a net $137 million in origination activity driven by credit card

— In 2Q08, we originated $6.7 billion of consumer mortgages and delivered $6.8 billion to agencies/privates

— Loans held for sale related to portfolio management activity decreased $2.4 billion primarily reflecting $2.2 billion in consumer real estate securitizations and $212 million in commercial real estate sales

Page - 8

Wachovia 2Q08 Quarterly Earnings Report

Period-End Managed Portfolio

	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Commercial
On-balance sheet loan portfolio	$	228,221	221,413	208,351	199,387	185,336	3	%	23
Securitized loans - off-balance sheet		105	120	131	142	170	(13	)	(38	)
Loans held for sale		2,224	3,342	9,414	13,905	11,573	(33	)	(81	)
Total commercial		230,550	224,875	217,896	213,434	197,079	3		17
Consumer
On-balance sheet loan portfolio		269,726	266,958	261,503	257,860	252,067	1		7
Securitized loans - off-balance sheet		10,688	11,585	12,304	13,053	14,122	(8	)	(24	)
Securitized loans included in securities		14,998	11,774	10,854	6,070	6,259	27		—
Loans held for sale		6,206	8,087	7,358	7,526	6,160	(23	)	1
Total consumer		301,618	298,404	292,019	284,509	278,608	1		8
Total managed portfolio	$	532,168	523,279	509,915	497,943	475,687	2	%	12

• The third-party consumer mortgage servicing portfolio totaled $43.9 billion at June 30, 2008, and the total consumer mortgage servicing portfolio was $201.1 billion

Period-End Balance Sheet Data

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Commercial loans, net	$	216,620		211,700		198,566		189,545		175,369		2	%	24
Consumer loans, net		271,578		268,782		263,388		259,661		253,751		1		7
Loans, net		488,198		480,482		461,954		449,206		429,120		2		14
Goodwill and other intangible assets
Goodwill		36,993		43,068		43,122		38,848		38,766		(14	)	(5	)
Deposit base		531		573		619		670		727		(7	)	(27	)
Customer relationships		1,321		1,375		1,410		620		651		(4	)	—
Tradename		90		90		90		90		90		—		—
Total assets		812,433		808,575		782,896		754,168		715,428		—		14
Core deposits		400,387		398,562		397,405		377,865		378,188		—		6
Total deposits		447,790		444,964		449,129		421,937		410,030		1		9
Long-term debt		184,401		175,653		161,007		158,584		142,047		5		30
Stockholders’ equity	$	75,379		77,992		76,872		70,140		69,266		(3	)%	9
Memoranda
Unrealized gains (losses) (Before income taxes)
Securities, net	$	(4,012	)	(2,340	)	(1,290	)	(1,994	)	(2,768	)
Risk management derivative financial instruments, net		682		1,831		635		(443	)	(1,280	)
Unrealized losses, net (Before income taxes)	$	(3,330	)	(509	)	(655	)	(2,437	)	(4,048	)

Page - 9

Wachovia 2Q08 Quarterly Earnings Report

Asset Quality

Asset Quality

	2008				2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Nonperforming assets
Nonaccrual loans	$	11,049		7,788	4,995	2,715	1,945	42	%	—
Restructured loans (a)		248		48	—	—	—	—		—
Foreclosed properties		631		530	389	334	207	19		—
Total nonperforming assets	$	11,928		8,366	5,384	3,049	2,152	43	%	—
as % of loans, net and foreclosed properties		2.44	%	1.74	1.16	0.68	0.50	—		—
Nonperforming assets in loans held for sale	$	63		5	62	59	42	—	%	50
Total nonperforming assets in loans and in loans held for sale	$	11,991		8,371	5,446	3,108	2,194	43	%	—
as % of loans, net, foreclosed properties and loans held for sale		2.41	%	1.70	1.14	0.66	0.49	—		—
Provision for credit losses	$	5,567		2,831	1,497	408	179	97		—
Allowance for credit losses	$	10,956		6,767	4,717	3,691	3,552	62	%	—
Allowance for loan losses
as % of loans, net		2.20	%	1.37	0.98	0.78	0.79	—		—
as % of nonaccrual and restructured loans (b)		95		84	90	129	174	—		—
as % of nonperforming assets (b)		90		78	84	115	157	—		—
Allowance for credit losses
as % of loans, net		2.24	%	1.41	1.02	0.82	0.83	—		—
Net charge-offs	$	1,309		765	461	206	150	71	%	—
Commercial, as % of average commercial loans		0.88	%	0.48	0.34	0.08	0.07	—		—
Consumer, as % of average consumer loans		1.26		0.79	0.46	0.27	0.19	—		—
Total, as % of average loans, net		1.10	%	0.66	0.41	0.19	0.14	—		—
Past due accruing loans, 90 days and over	$	1,181		866	708	590	562	36	%	—
Commercial, as a % of loans, net		0.14	%	0.05	0.05	0.04	0.03	—		—
Consumer, as a % of loans, net		0.32	%	0.28	0.23	0.20	0.20	—		—

(a) Troubled debt restructurings were not significant prior to the first quarter of 2008.

(b) These ratios do not include nonperforming assets included in loans held for sale.

KEY POINTS

• Total NPAs of $11.9 billion rose $3.6 billion driven by increases of $2.8 billion in consumer real estate, $453 million in commercial real estate and $321 million in commercial, financial and agricultural; up 70 bps to 2.44% of loans

— Consumer real estate nonaccrual loan growth reflects continued deterioration in the housing market, particularly in California and Florida, and included $2.4 billion from the Pick-a-Pay mortgage portfolio

— Commercial real estate nonaccrual loans increased $453 million driven largely by increases in residential-related real estate in the Real Estate Financial Services (REFS) portfolio

— Commercial, financial and agricultural nonaccrual loan growth of $321 million was driven by two large credit relationships

• Provision expense of $5.6 billion largely reflects the effects of additional significant deterioration in the housing market and our expectation for continued deterioration

— Results included $4.2 billion of reserve build largely reflecting higher expected losses for the consumer real estate portfolio including $3.3 billion associated with the Pick-a-Pay mortgage portfolio as well as increasing risk in commercial

— Net charge-offs of $1.3 billion, or 110 bps of average loans, increased $544 million driven by higher consumer real estate, commercial real estate and commercial losses

— $51 million of provision related to loan sales or transfers to held for sale

• Allowance for credit losses of $11.0 billion, or 2.24% of net loans

— Allowance for loan losses covers annualized 2Q08 net charge-offs 2.05 times

— Allowance increase reflects higher expected losses, particularly in consumer real estate

Page - 10

Wachovia 2Q08 Quarterly Earnings Report

Charge-Offs

Charge-offs

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Loan losses:
Commercial, financial and agricultural	$	(254	)	(171	)	(67	)	(41	)	(39	)	49	%	—
Commercial real estate - construction and mortgage		(216	)	(81	)	(117	)	(5	)	(4	)	—		—
Total commercial		(470	)	(252	)	(184	)	(46	)	(43	)	87		—
Real estate secured		(700	)	(351	)	(156	)	(59	)	(40	)	99		—
Student loans		(3	)	(3	)	(4	)	(5	)	(2	)	—		50
Installment and other loans (a)		(230	)	(242	)	(225	)	(168	)	(138	)	(5	)	67
Total consumer		(933	)	(596	)	(385	)	(232	)	(180	)	57		—
Total loan losses		(1,403	)	(848	)	(569	)	(278	)	(223	)	65		—
Loan recoveries:
Commercial, financial and agricultural		15		14		22		9		15		7		—
Commercial real estate - construction and mortgage		—		1		—		3		—		—		—
Total commercial		15		15		22		12		15		—		—
Real estate secured		18		10		9		12		11		80		64
Student loans		1		1		2		3		—		—		—
Installment and other loans (a)		60		57		75		45		47		5		28
Total consumer		79		68		86		60		58		16		36
Total loan recoveries		94		83		108		72		73		13		29
Net charge-offs:
Commercial, financial and agricultural		(239	)	(157	)	(45	)	(32	)	(24	)	52		—
Commercial real estate - construction and mortgage		(216	)	(80	)	(117	)	(2	)	(4	)	—		—
Total commercial		(455	)	(237	)	(162	)	(34	)	(28	)	92		—
Real estate secured		(682	)	(341	)	(147	)	(47	)	(29	)	—		—
Student loans		(2	)	(2	)	(2	)	(2	)	(2	)	—		—
Installment and other loans (a)		(170	)	(185	)	(150	)	(123	)	(91	)	(8	)	87
Total consumer		(854	)	(528	)	(299	)	(172	)	(122	)	62		—
Net charge-offs	$	(1,309	)	(765	)	(461	)	(206	)	(150	)	71	%	—
Net charge-offs as a % of average loans, net (b)
Commercial, financial and agricultural		0.60	%	0.41		0.12		0.10		0.07		—		—
Commercial real estate - construction and mortgage		1.89		0.73		1.12		0.02		0.04		—		—
Total commercial		0.88		0.48		0.34		0.08		0.07		—		—
Real estate secured		1.18		0.59		0.26		0.08		0.05		—		—
Student loans		0.07		0.08		0.10		0.14		0.07		—		—
Installment and other loans (a)		2.36		2.76		2.35		1.99		1.47		—		—
Total consumer		1.26		0.79		0.46		0.27		0.19		—		—
Total, as % of average loans, net		1.10	%	0.66		0.41		0.19		0.14		—		—
Consumer real estate secured net charge-offs:
First lien	$	(592	)	(291	)	(122	)	(32	)	(17	)	—	%	—
Second lien		(90	)	(50	)	(25	)	(15	)	(12	)	80		—
Total consumer real estate secured net charge-offs	$	(682	)	(341	)	(147	)	(47	)	(29	)	—	%	—

(a) Principally auto loans.

(b) Annualized.

• Net charge-offs in the loan portfolio of $1.3 billion increased $544 million, or 71%, driven by higher loan losses in consumer real estate, commercial and commercial real estate; annualized net charge-offs up 44 basis points to 1.10% of average loans

— Commercial net charge-offs of $455 million increased $218 million, or 40 bps, to 0.88% of loans

• Commercial, financial and agricultural net charge-offs of $239 million, or 0.60% of loans, increased $82 million driven by four large credit relationships as well as a $23 million loss associated with a loan that financed the 1Q08 sale of $255 million of residential subprime mortgage assets

• Commercial real estate net charge-offs of $216 million, or 1.89% of loans, increased $136 million on higher residential-related losses

— Consumer net charge-offs of $854 million increased $326 million, or 47 bps to 1.26%, driven by a $341 million increase in consumer real estate net charge-offs

• 2Q08 results include $682 million in consumer real estate losses, including $508 million in the Pick-a-Pay portfolio, $130 million in home equity, $32 million in traditional mortgage and $12 million associated with non-branch originated CIB Alt-A loans

• Installment and other loan net charge-offs of $170 million declined $15 million driven by a $17 million reduction in auto

Page - 11

Wachovia 2Q08 Quarterly Earnings Report

Allowance For Credit Losses

Allowance for Credit Losses

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Allowance for credit losses (a)
Allowance for loan losses, beginning of period	$	6,567		4,507		3,505		3,390		3,378		46	%	94
Net charge-offs		(1,309	)	(765	)	(461	)	(206	)	(150	)	71		—
Allowance relating to loans acquired, transferred to loans held for sale or sold		(69	)	(16	)	(10	)	(63	)	(10	)	—		—
Provision for credit losses related to loans transferred to loans held for sale or sold (b)		51		7		6		3		4		—		—
Provision for credit losses		5,504		2,834		1,467		381		168		94		—
Allowance for loan losses, end of period		10,744		6,567		4,507		3,505		3,390		64		—
Reserve for unfunded lending commitments, beginning of period		200		210		186		162		155		(5	)	29
Provision for credit losses		12		(10	)	24		24		7		—		71
Reserve for unfunded lending commitments, end of period		212		200		210		186		162		6		31
Allowance for credit losses	$	10,956		6,767		4,717		3,691		3,552		62	%	—
Allowance for loan losses
as % of loans, net		2.20	%	1.37		0.98		0.78		0.79		—		—
as % of nonaccrual and restructured loans (c)		95		84		90		129		174		—		—
as % of nonperforming assets (c)		90		78		84		115		157		—		—
Allowance for credit losses
as % of loans, net		2.24	%	1.41		1.02		0.82		0.83		—		—

(a) The allowance for credit losses is the sum of the allowance for loan losses and the reserve for unfunded lending commitments.

(b) The provision related to loans transferred or sold includes recovery of lower of cost or market losses.

(c) These ratios do not include nonperforming assets included in loans held for sale.

• Allowance for credit losses increased $4.2 billion to $11.0 billion, reflecting increased risk in the consumer real estate, commercial and auto portfolios largely resulting from a stressed credit environment amid the continued downturn in the residential housing market, as well as loan growth

— $4.0 billion of the increase related to consumer

• $3.7 billion reflects higher expected losses in consumer real estate driven largely by continued sharp declines in home values and the forecast for continued declines, particularly in California and Florida

• $3.3 billion associated with the Pick-a-Pay portfolio, which increased to 4.17% of loans compared to 1.55% at 1Q08

• $349 million of the increase related to home equity

• $58 million of the increase related to our traditional mortgage portfolio

• $84 million of the increase related to auto, largely reflecting higher expected losses on increased frequency and severity

— $179 million of the increase related to commercial

• $93 million relates to higher expected losses largely from the effect of the downturn in the housing market on related commercial sectors and $86 million reflects an increase in FAS 114 reserves

— As a percentage of loans, the allowance for loan losses of 2.20% and the allowance for credit losses of 2.24% both rose 83 bps

Page - 12

Wachovia 2Q08 Quarterly Earnings Report

Allowance for Credit Losses

	2008							2007
	Second Quarter				First Quarter			Fourth Quarter
(In millions)	Amount		As a % of loans, net		Amount	As a % of loans, net		Amount		As a % of loans, net
Allowance for loan losses
Commercial	$	2,793	1.29	%	2,645	1.25	%	$	2,392	1.20	%
Consumer		7,621	2.81		3,592	1.34			1,950	0.74
Unallocated		330	—		330	—			165	—
Total		10,744	2.20		6,567	1.37			4,507	0.98
Reserve for unfunded lending commitments
Commercial		212	—		200	—			210	—
Allowance for credit losses	$	10,956	2.24	%	6,767	1.41	%	$	4,717	1.02	%
Memoranda
Total commercial (Including reserve for unfunded lending commitments)	$	3,005	1.39	%	2,845	1.34	%	$	2,602	1.31	%

Nonperforming Assets

Nonperforming Assets

	2008				2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Nonaccrual Loans
Commercial:
Commercial, financial and agricultural	$	1,229		908	602	354	318	35	%	—
Commercial real estate - construction and mortgage		2,203		1,750	1,059	289	161	26		—
Total commercial		3,432		2,658	1,661	643	479	29		—
Consumer:
Real estate secured:
First lien		7,430		5,015	3,234	1,986	1,380	48		—
Second lien		147		75	58	41	44	96		—
Installment and other loans (a)		40		40	42	45	42	—		(5	)
Total consumer		7,617		5,130	3,334	2,072	1,466	48		—
Total nonaccrual loans		11,049		7,788	4,995	2,715	1,945	42		—
Restructured loans		248		48	—	—	—	—		—
Foreclosed properties (b)		631		530	389	334	207	19		—
Total nonperforming assets	$	11,928		8,366	5,384	3,049	2,152	43		—
As % of loans, net, and foreclosed properties (c)		2.44	%	1.74	1.16	0.68	0.50	—		—
Nonperforming assets included in loans held for sale
Commercial	$	56		—	—	—	—	—		—
Consumer		7		5	62	50	37	40		(81	)
Total nonaccrual loans		63		5	62	50	37	—		70
Foreclosed properties		—		—	—	9	5	—		—
Total nonperforming assets included in loans held for sale		63		5	62	59	42	—		50
Nonperforming assets included in loans and in loans held for sale	$	11,991		8,371	5,446	3,108	2,194	43		—
As % of loans, net, foreclosed properties and loans held for sale (d)		2.41	%	1.70	1.14	0.66	0.49	—		—
Past due loans, 90 days and over, and nonaccrual loans
Accruing loans past due 90 days and over	$	1,181		866	708	590	562	36		—
Nonaccrual loans		11,049		7,788	4,995	2,715	1,945	42		—
Total past due loans 90 days and over, and nonaccrual loans	$	12,230		8,654	5,703	3,305	2,507	41	%	—
Commercial, as a % of loans, net		1.73	%	1.31	0.89	0.38	0.31	—		—
Consumer, as a % of loans, net		3.12	%	2.19	1.49	1.00	0.78	—		—

(a) Principally auto loans; nonaccrual status does not apply to student loans.

(b) Troubled debt restructurings were not significant prior to the first quarter of 2008.

(c) These ratios do not include nonperforming assets included in loans held for sale.

(d) These ratios reflect nonperforming assets included in loans held for sale.

• Nonperforming loans of $11.0 billion increased $3.3 billion

— Commercial nonaccruals of $3.4 billion rose $774 million

• Commercial, financial and agricultural nonaccruals of $1.2 billion increased $321 million driven by two large credit relationships

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Wachovia 2Q08 Quarterly Earnings Report

• Commercial real estate nonaccruals of $2.2 billion increased $453 million on growth in REFS residential-related nonaccruals

— Consumer nonaccruals of $7.6 billion increased $2.5 billion on consumer real estate increases that included $2.3 billion of Pick-a-Pay loans

• 2Q08 results include $1.6 billion of Pick-a-Pay modified loans vs. $632 million in 1Q08

• $67 million of the increase reflects non-branch originated Alt-A loans in the Corporate and Investment Bank transferred in 1Q08 at market value from held-for-sale to the portfolio

• $147 million, or 1.95%, of consumer real estate nonaccrual loans secured by a second lien

• 2Q08 period-end average current LTV of the consumer real estate nonaccrual loan portfolio of 98%; 60% of nonaccrual loans were originated with an LTV of 90% or higher

• Foreclosed properties of $631 million increased $101 million driven by a $97 million increase in consumer real estate

— Pick-a-Pay foreclosed properties increased $69 million to $306 million, up 444 properties to 1,361

• During the quarter 1,151 properties were sold compared with 1,595 new properties reflecting our strategy of aggressive resolution of problem assets as well as the rapid acceleration of the housing downturn

Nonperforming Loans (a)

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Balance, beginning of period	$	7,788		4,995		2,715		1,945		1,632		56	%	—
Commercial nonaccrual loan activity
Commercial nonaccrual loans, beginning of period		2,658		1,661		643		479		420		60		—
New nonaccrual loans and advances		1,651		1,421		1,303		298		205		16		—
Charge-offs		(470	)	(252	)	(184	)	(46	)	(43	)	87		—
Transfers (to) from loans held for sale		(88	)	—		—		—		—		—		—
Transfers (to) from other real estate owned		(7	)	(26	)	—		(5	)	(2	)	(73	)	—
Sales		(68	)	(33	)	(26	)	(14	)	(15	)	—		—
Other, principally payments		(244	)	(113	)	(75	)	(69	)	(86	)	—		—
Net commercial nonaccrual loan activity		774		997		1,018		164		59		(22	)	—
Commercial nonaccrual loans, end of period		3,432		2,658		1,661		643		479		29		—
Consumer nonaccrual loan activity
Consumer nonaccrual loans, beginning of period		5,130		3,334		2,072		1,466		1,212		54		—
Transfer (to) from loans held for sale		—		100		—		—		—		—		—
Nonaccrual loans sold or securitized		—		—		—		—		(3	)	—		—
Other, net		2,487		1,696		1,262		606		257		47		—
Net consumer nonaccrual loan activity		2,487		1,796		1,262		606		254		38		—
Consumer nonaccrual loans, end of period		7,617		5,130		3,334		2,072		1,466		48		—
Balance, end of period	$	11,049		7,788		4,995		2,715		1,945		42	%	—

(a) Nonperforming assets included in loans held for sale at June 30 and March 31, 2008 and at December 31, September 30 and June 30, 2007, were $63 million, $5 million, $62 million, $59 million and $42 million, respectively.

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Wachovia 2Q08 Quarterly Earnings Report

SUMMARY OPERATING RESULTS

BUSINESS SEGMENTS

Business segment results are presented excluding (i) merger-related and restructuring expenses, (ii) goodwill impairment charge, (iii) deposit base intangible and other intangible amortization expense, (iv) amounts presented as discontinued operations and (v) the cumulative effect of changes in accounting principles. This is the basis on which we manage and allocate capital to our business segments. We continuously assess assumptions, methodologies and reporting classifications to better reflect the true economics of our business segments and the management of our businesses.

A provision for credit losses is allocated to each core business segment based on net charge-offs, and the difference between the total for each segment and the consolidated provision for credit losses is recorded in the Parent segment.

In order to remove interest rate risk from each core business segment, the management reporting model employs a funds transfer pricing (FTP) system. The FTP system matches the duration of the funding used by each segment to the duration of the assets and liabilities contained in each segment. Matching the duration, or the effective term until an instrument is expected to reprice or mature, allocates interest income and/or interest expense to each segment to insulate its resulting net interest income from interest rate risk.

In a falling rate environment, we experience a tightening spread between deposit costs and wholesale funding costs. However, our FTP system passes the effect of this tightening to deposit-providing business units on a lagged basis. Additionally, the effect of the FTP system is a decrease in charges to business units for funding to support predominantly floating-rate assets. The impact of lower rates earned on floating-rate assets and lagging rates on longer duration deposits is captured in the central money book in the Parent. Interest rate risk at Wachovia is actively managed at the corporate level and is unaffected by volatility in the central money book that may arise as a result of our FTP methodology.

ADOPTION OF NEW ACCOUNTING STANDARDS

On January 1, 2008, we adopted Statement of Financial Accounting Standards (SFAS) No. 157, “Fair Value Measurements,” and SFAS No. 159, “The Fair Value Option for Financial Assets and Financial Liabilities.” SFAS 157 establishes a framework for measuring fair value under U.S. GAAP, expands disclosures about fair value measurements and provides new income recognition criteria for certain derivative contracts. SFAS 157 does not establish any new fair value measurements; rather it defines “fair value” for other accounting standards that require the use of fair value for recognition or disclosure. SFAS 159 permits companies to elect to carry certain financial instruments at fair value with corresponding changes in fair value recorded in the results of operations. The effect of adopting SFAS 157 was recorded either directly to first quarter 2008 results of operations or as a cumulative effect of a change in accounting principle through an adjustment to beginning retained earnings on January 1, 2008, depending on the nature of the fair value adjustment. The transition adjustment for SFAS 159 was recorded as a cumulative effect of a change in accounting principle through an adjustment to beginning retained earnings on January 1, 2008.

The adoption and application of SFAS 157 resulted in net gains in the first quarter 2008 results of operations of $517 million pre-tax related primarily to a change in the methodology used to calculate the fair value of certain investments in private equity funds held in a wholly-owned investment company. Also, on January 1, 2008, we recorded a $38 million after-tax gain ($61 million pre-tax) as a cumulative effect adjustment to beginning retained earnings related to removal of blockage discounts previously applied in determining the fair value of certain actively traded public equity investments and to profits previously deferred on certain derivative transactions. SFAS 157 prohibits the use of blockage discounts in determining the fair value of financial instruments.

Upon adoption of SFAS 159, we elected to record certain existing securities available for sale and a small percentage of our loans held-for-sale portfolio at fair value, and in connection therewith recorded a $38 million after-tax ($60 million pre-tax) charge to 2008 beginning retained earnings as a cumulative effect of the adoption of SFAS 159. During first quarter 2008, we elected fair value for certain newly originated retail mortgage loans held for sale, resulting in gains of $42 million in results of operations. Securities elected upon adoption and their related interest rate hedges resulted in a net $114 million charge to results of operations. Prospectively, we plan to elect fair value for certain newly originated loans and loans held for sale, certain purchased securities and certain debt issuances with related unrealized gains and losses reported in the results of operations.

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Wachovia 2Q08 Quarterly Earnings Report

To summarize, the total impact of adoption and application of SFAS 157 was a 1Q08 net gain of $517 million, and the total impact of adoption and application of SFAS 159 was a 1Q08 net charge of $72 million, for a total 1Q08 net gain of $445 million in results of operations. The impact of adoption, excluding ongoing 1Q08 activity, was a net gain of $481 million.

INVESTMENT IN BLUEPOINT

Wachovia controls 100% of the outstanding equity of BluePoint Re Limited (“BluePoint”), a Bermuda-based monoline bond reinsurer, and accordingly consolidates this subsidiary. The results for the third and fourth quarters of 2007 have been reclassified to reflect the results of BluePoint as a discontinued operation. Results from inception of BluePoint in 2005 through the third quarter of 2007 were not material, and accordingly, have not been included in discontinued operations.

In 2007, BluePoint recorded significant losses on certain derivative instruments (principally credit default swaps on ABS CDOs) and these losses through December 31, 2007, approximated substantially all of Wachovia's investment in BluePoint and were included in Wachovia’s 2007 consolidated financial results. Wachovia has no further obligation to inject capital in BluePoint. BluePoint continued to record these instruments at fair value in 2008. In estimating the fair value of these instruments under SFAS 157, a company must consider, among other things, its own credit rating, which in this case is BluePoint’s. As Wachovia has no obligation to fund losses in excess of BluePoint’s equity, BluePoint assessed the discount required in valuing these instruments to reflect a market participant’s view of BluePoint’s non-performance risk. BluePoint's valuation at June 30, 2008, reflected a very significant discount for its non-performance risk, such that BluePoint recorded no further loss on the derivative instruments in the quarter. Accordingly, our second quarter 2008 consolidated results reflect no additional losses in discontinued operations.

GOODWILL

We test goodwill for impairment on an annual basis, or more often if events or circumstances indicate there may be impairment. Goodwill impairment testing is performed at the sub-segment (or “reporting unit”) level. Goodwill is assigned to reporting units at the date the goodwill is initially recorded. Once goodwill has been assigned to reporting units, it no longer retains its association with a particular acquisition, and all of the activities within a reporting unit, whether acquired or organically grown, are available to support the value of the goodwill. The goodwill impairment analysis is a two-step test. The first step, used to identify potential impairment, involves comparing each reporting unit’s fair value to its carrying value including goodwill. If the fair value of a reporting unit exceeds its carrying value, applicable goodwill is considered not to be impaired. If the carrying value exceeds fair value, there is an indication of impairment and the second step is performed to measure the amount of impairment.

The second step involves calculating an implied fair value of goodwill for each reporting unit for which the first step indicated impairment. The implied fair value of goodwill is determined in the same manner as the amount of goodwill recognized in a business combination, which is the excess of the fair value of the reporting unit, as determined in the first step, over the aggregate fair values of the individual assets, liabilities and identifiable intangibles as if the reporting unit was being acquired in a business combination. If the implied fair value of goodwill exceeds the goodwill assigned to the reporting unit, there is no impairment. If the goodwill assigned to a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded for the excess. An impairment loss recognized cannot exceed the amount of goodwill assigned to a reporting unit, and the loss establishes a new basis in the goodwill. Subsequent reversal of goodwill impairment losses is not permitted under applicable accounting standards.

Historically, we determined fair values of reporting units using two methods, one based on market earnings multiples of peer companies for each reporting unit, and the other based on discounted cash flow models with estimated cash flows based on internal forecasts of revenues and expenses. In the first quarter of 2008, we added a third method, one based on the previously described market earnings multiples of peer companies adjusted to include a control premium calculated based on comparable transactions for each reporting unit. At June 30, 2008, the fair values of our reporting units were based on discounted cash flow models with discount rates that appropriately reflect our current market capitalization plus a control premium.

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Wachovia 2Q08 Quarterly Earnings Report

We performed goodwill impairment testing for all eight reporting units at December 31, 2007, March 31, 2008, and June 30, 2008. There was no indication of impairment in the first step of the test at either December 31, 2007, or March 31, 2008, and accordingly, we did not perform the second step. At June 30, 2008, there was an indication of impairment in four of our eight reporting units, and accordingly, the second step was performed on these four reporting units. Based on the results of the second step, we recorded a $6.1 billion goodwill impairment charge across three of the four reporting units tested, as follows:

Goodwill Impairment

(Dollars in millions)	CIB Corporate Lending			CIB Investment Banking		General Bank Commercial		General Bank Retail and Small Business	All Other Reporting Units	6/30/08 Total
Assigned goodwill	$	2,937		597		7,086		23,980	8,453	43,053
Impairment		(2,937	)	(597	)	(2,526	)	—	—	(6,060	)
Remaining goodwill	$	—		—		4,560		23,980	8,453	36,993

The primary cause of impairment of our goodwill is the decline in our market capitalization, which declined 37 percent from March 31, 2008, to $33.5 billion at June 30, 2008. The decline was a function of both financial services industry-wide and company-specific factors. Although there was an initial indication of possible impairment in the General Bank retail and small business reporting unit, which holds the Pick-a-Payment portfolio, the step two measurement indicated no impairment largely due to the value that the retail banking network contributes to that reporting unit.

LEVERAGED LEASE RECALCULATION

We have two primary classes of cross-border leveraged leases: Lease-In, Lease-Out transactions (LILOs) and a second group of transactions that are broadly referred to as Sale-In, Lease-Out transactions (SILOs). Actual or projected changes that affect the timing of cash flows in a leveraged lease trigger a recalculation of the rate of return of the lease with the change in the net investment of the lease resulting from the recalculation recorded as a gain or loss, reported as a component of net interest margin, in the period in which the change in cash flows occurs. Based on an appeals court decision in 2Q08 involving another large financial institution’s portfolio of LILOs and a subsequent district court decision involving a SILO, we reevaluated our assumptions as to the timing of income tax cash flows on our SILO transactions, and in connection therewith, recalculated the leases with revised cash flow assumptions mirroring the impact of the appeals court decision. The recalculation resulted in a pre-tax charge of $975 million. Our LILO portfolio was unaffected by the decisions because we reached a settlement with the IRS in 2004.

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Wachovia 2Q08 Quarterly Earnings Report

GENERAL BANK

This segment includes Retail and Small Business, and Commercial.

General Bank

Performance Summary

	2008				2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(Dollars in millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	3,671		3,445	3,401	3,464	3,372	7	%	9
Fee and other income		1,000		980	929	936	935	2		7
Intersegment revenue		57		55	58	59	56	4		2
Total revenue (Tax-equivalent)		4,728		4,480	4,388	4,459	4,363	6		8
Provision for credit losses		919		569	320	207	154	62		—
Noninterest expense		2,050		2,038	2,037	1,897	1,922	1		7
Income taxes (Tax-equivalent)		642		684	741	861	834	(6	)	(23	)
Segment earnings	$	1,117		1,189	1,290	1,494	1,453	(6	)%	(23	)
Performance and other data
Economic profit	$	919		992	1,043	1,189	1,124	(7	)%	(18	)
Risk adjusted return on capital (RAROC)		33.02	%	42.43	47.99	54.28	52.66	—		—
Economic capital, average	$	16,786		12,693	11,183	10,898	10,821	32		55
Cash overhead efficiency ratio (Tax-equivalent)		43.35	%	45.50	46.42	42.56	44.05	—		—
Lending commitments	$	133,201		132,805	133,733	132,779	129,851	—		3
Average loans, net		319,574		311,556	303,396	294,709	291,607	3		10
Average core deposits	$	290,381		297,171	296,194	290,133	290,455	(2	)	—
FTE employees		54,415		54,831	55,559	56,519	57,574	(1	)%	(5	)
General Bank Key Metrics
	2008				2007			2Q08 vs 1Q08		2Q08 vs 2Q07
	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Customer overall satisfaction score (a)		6.65		6.62	6.62	6.63	6.65	—	%	—
New/Lost ratio		1.23		1.27	1.33	1.34	1.29	(3	)	(5	)
Online active customers (In thousands) (b)		5,086		4,849	4,677	4,491	4,322	5		18
Financial centers		3,308		3,323	3,355	3,381	3,361	—	%	(2	)

(a) Gallup survey measured on a 1-7 scale; 6.4 = “best in class”.

(b) Retail and small business.

SEGMENT EARNINGS OF $1.1 BILLION, DOWN 6% AND 23% FROM 2Q07

• Revenue of $4.7 billion increased 6% and 8% from 2Q07

— Net interest income rose $226 million, or 7%, on improving loan spreads as well as the benefit of 2% low-cost core deposit growth and 3% loan growth somewhat offset by the effect of higher nonperforming loans

— Fee and other income grew 2% on higher interchange fees and consumer and commercial service charges, partially offset by lower mortgage securitization income on lower spreads; fees rose 7% from 2Q07 results

• Provision expense increased $350 million to $919 million driven by higher consumer real estate losses

• Expenses increased 1%, reflecting higher revenue-based incentives and salaries, and lower FAS 91 deferrals due to lower mortgage portfolio volumes, partially offset by $30 million lower retirement-eligible stock compensation expense and marketing expense

— Reflects strategic investment spend of $40 million including $20 million of de novo and branch consolidation costs and $20 million relating to the Western expansion

• Average loans grew 3%, and 10% from 2Q07; period-end loans up 2%

— Consumer loans increased $5.6 billion, or 2%, driven by growth in consumer real estate driven by slower prepayment in consumer real estate as well as growth in auto; period-end loans up 2%

— Commercial loans up $2.5 billion, or 4%, driven by growth in middle market and business banking; period-end loans up 2%

• Average core deposits declined 2% as low-cost core deposit growth of 2% driven by DDA, money market and savings was more than offset by an 8% decrease in CDs reflecting the deliberate repositioning of the portfolio; period-end deposits down 3%

— Retail net new checking account sales of 263,000 compared with 174,000 in 1Q08

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Wachovia 2Q08 Quarterly Earnings Report

• 799,000 Way2Save accounts opened to date including 305,000 accounts linked to new checking accounts

• Opened 23 de novo branches during the quarter; including 8 branches in California; consolidated 38 branches

RETAIL AND SMALL BUSINESS

This sub-segment includes Retail Banking, Small Business Banking, Wachovia Mortgage, Wachovia Home Equity, Wachovia Education Finance and other retail businesses.

Retail and Small Business

Performance Summary

	2008				2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	2,658		2,502	2,469	2,561	2,507	6	%	6
Fee and other income		867		849	813	822	825	2		5
Intersegment revenue		11		12	15	15	14	(8	)	(21	)
Total revenue (Tax-equivalent)		3,536		3,363	3,297	3,398	3,346	5		6
Provision for credit losses		739		395	142	86	58	87		—
Noninterest expense		1,656		1,638	1,648	1,550	1,569	1		6
Income taxes (Tax-equivalent)		417		486	549	645	626	(14	)	(33	)
Segment earnings	$	724		844	958	1,117	1,093	(14	)%	(34	)
Performance and other data
Economic profit	$	695		779	803	933	894	(11	)%	(22	)
Risk adjusted return on capital (RAROC)		35.21	%	51.79	57.46	66.23	64.44	—		—
Economic capital, average	$	11,541		7,678	6,850	6,702	6,711	50		72
Cash overhead efficiency ratio (Tax-equivalent)		46.83	%	48.72	49.95	45.65	46.86	—		—
Average loans, net	$	231,302		226,681	221,269	214,537	213,429	2		8
Average core deposits	$	244,985		249,327	249,734	247,305	247,310	(2	)%	(1	)

GENERAL BANK-RETAIL AND SMALL BUSINESS LOAN PRODUCTION

Retail and Small Business

(In millions)	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Loan production
Mortgage	$	11,768	12,787	12,419	13,983	15,943	(8	)%	(26	)
Home equity		3,954	4,257	6,122	7,315	9,044	(7	)	(56	)
Student		813	1,479	733	1,346	645	(45	)	26
Installment		81	86	127	158	201	(6	)	(60	)
Other retail and small business		1,031	1,033	1,168	1,356	1,528	—		(33	)
Total loan production	$	17,647	19,642	20,569	24,158	27,361	(10	)%	(36	)

WACHOVIA.COM

Wachovia.com

(In thousands)	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Online product and service enrollments
Retail		14,481	13,844	13,272	12,664	11,997	5	%	21
Wholesale		899	857	821	781	748	5		20
Total online product and service enrollments		15,380	14,701	14,093	13,445	12,745	5		21
Enrollments per quarter		866	835	823	878	767	4		13
Dollar value of transactions (In billions)	$	84.3	79.6	67.3	62.4	57.5	6	%	47

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Wachovia 2Q08 Quarterly Earnings Report

COMMERCIAL

This sub-segment includes Business Banking, Middle-Market Commercial and Government Banking.

Commercial

Performance Summary

	2008				2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	1,013		943	932	903	865	7	%	17
Fee and other income		133		131	116	114	110	2		21
Intersegment revenue		46		43	43	44	42	7		10
Total revenue (Tax-equivalent)		1,192		1,117	1,091	1,061	1,017	7		17
Provision for credit losses		180		174	178	121	96	3		88
Noninterest expense		394		400	389	347	353	(2	)	12
Income taxes (Tax-equivalent)		225		198	192	216	208	14		8
Segment earnings	$	393		345	332	377	360	14	%	9
Performance and other data
Economic profit	$	224		213	240	256	230	5	%	(3	)
Risk adjusted return on capital (RAROC)		28.20	%	28.09	33.01	35.20	33.43	—		—
Economic capital, average	$	5,245		5,015	4,333	4,196	4,110	5		28
Cash overhead efficiency ratio (Tax-equivalent)		33.04	%	35.78	35.73	32.64	34.79	—		—
Average loans, net	$	88,272		84,875	82,127	80,172	78,178	4		13
Average core deposits	$	45,396		47,844	46,460	42,828	43,145	(5	)%	5

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Wachovia 2Q08 Quarterly Earnings Report

WEALTH MANAGEMENT

This segment includes Private Banking, Personal Trust, Investment Advisory Services, Charitable Services, Financial Planning and Insurance Brokerage (property and casualty, and high net worth life).

Wealth Management

Performance Summary

	2008				2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(Dollars in millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	202		182	183	186	182	11	%	11
Fee and other income		207		211	215	185	202	(2	)	2
Intersegment revenue		3		5	3	4	3	(40	)	—
Total revenue (Tax-equivalent)		412		398	401	375	387	4		6
Provision for credit losses		8		5	7	6	2	60		—
Noninterest expense		253		246	250	240	244	3		4
Income taxes (Tax-equivalent)		53		55	52	48	51	(4	)	4
Segment earnings	$	98		92	92	81	90	7	%	9
Performance and other data
Economic profit	$	76		70	73	62	70	9	%	9
Risk adjusted return on capital (RAROC)		52.61	%	51.44	58.46	50.96	56.73	—		—
Economic capital, average	$	731		699	616	616	612	5		19
Cash overhead efficiency ratio (Tax-equivalent)		61.05	%	61.98	62.23	64.36	62.80	—		—
Lending commitments	$	6,915		7,007	7,011	7,007	6,892	(1	)	—
Average loans, net		23,151		22,365	21,727	21,494	21,056	4		10
Average core deposits	$	17,559		17,906	17,132	17,167	17,466	(2	)	1
FTE employees		4,665		4,650	4,712	4,547	4,580	—	%	2

Wealth Management Key Metrics

	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(Dollars in millions)	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Assets under management (a)	$	77,266	79,834	83,933	82,801	79,329	(3	)%	(3	)
Wealth Management producers		976	970	985	969	981	1	%	(1	)

(a) Includes $37 billion in assets managed by and reported in Capital Management.

SEGMENT EARNINGS OF $98 MILLION, UP 7% AND 9% FROM 2Q07

• Revenue of $412 million increased 4%, up 6% from 2Q07 despite environmental headwinds

— Net interest income grew 11% reflecting improved deposit spreads and continued loan growth

— Fee and other income down 2% as lower fiduciary and asset management fees were partially offset by seasonally higher insurance commissions

• Fiduciary and asset management fees down 8% driven by the effect of a 1Q08 $12 million receivables adjustment: up 1% excluding this effect and up 16% from 2Q07 on improved pricing and other growth

• Expenses up 3% on salaries and incentives expense including the effect of Western expansion partially offset by $8 million lower retirement-eligible employee stock compensation expense

• Average loans grew 4% and 10% from 2Q07, led by commercial growth

• Assets under management decreased 3% from 1Q08 and 2Q07 largely reflecting lower market valuations

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Wachovia 2Q08 Quarterly Earnings Report

CORPORATE AND INVESTMENT BANK

This segment includes Corporate Lending, Investment Banking, and Treasury and International Trade Finance.

Corporate and Investment Bank

Performance Summary

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(Dollars in millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	1,124		1,028		988		839		773		9	%	45
Fee and other income		657		(158	)	(552	)	175		1,522		—		(57	)
Intersegment revenue		(52	)	(50	)	(50	)	(52	)	(50	)	4		4
Total revenue (Tax-equivalent)		1,729		820		386		962		2,245		—		(23	)
Provision for credit losses		438		197		112		1		(2	)	—		—
Noninterest expense		960		747		953		626		1,020		29		(6	)
Income taxes (benefits) (Tax-equivalent)		122		(46	)	(248	)	123		448		—		(73	)
Segment earnings (loss)	$	209		(78	)	(431	)	212		779		—	%	(73	)
Performance and other data
Economic profit (loss)	$	4		(412	)	(744	)	(114	)	490		—	%	(99	)
Risk adjusted return on capital (RAROC)		11.12	%	(1.53	)	(15.22	)	6.39		33.22		—		—
Economic capital, average	$	13,816		13,233		11,263		9,791		8,850		4		56
Cash overhead efficiency ratio (Tax-equivalent)		55.60	%	91.00		247.26		65.15		45.43		—		—
Lending commitments	$	113,559		114,114		118,734		119,791		115,430		—		(2	)
Average loans, net		106,642		101,046		91,665		82,969		76,744		6		39
Average core deposits	$	31,682		33,623		36,214		37,188		36,713		(6	)	(14	)
FTE employees		6,394		6,342		6,600		6,730		6,872		1	%	(7	)

SEGMENT EARNINGS OF $209 MILLION, UP $287 MILLION; DOWN $570 MILLION FROM 2Q07

• Revenue of $1.7 billion increased $909 million and decreased $516 million from 2Q07

— Results reflect market valuation losses of $565 million versus $1.6 billion in 1Q08 with the decline largely reflecting leveraged finance gains somewhat offset by losses on ineffective economic hedges that were largely unwound during the quarter and lower exposure levels in structured products

— Net interest income increased $96 million, or 9%, largely on higher trading related income in equities and global rate products as well as improved spreads on earning assets and deposits

• Average loans up $5.6 billion, reflecting a $4.7 billion, or 5%, increase in commercial and a $897 million increase in consumer

• Commercial loan growth was driven by growth in commercial, commercial real estate and foreign and included the $1.1 billion effect of 1Q08 transfers from held for sale and the $1.0 billion effect of loans to finance the sale of trading and other assets

• Consumer loan growth was driven by the $719 million average effect of 1Q08 real-estate secured transfers from held for sale

— Fee and other income rose $815 million driven by $1.0 billion lower market-disruption related losses and higher underwriting fees from strong 1Q08 levels, partially offset by a $309 million decrease in principal investing; down $865 million from 2Q07

(Please see page 23 for additional detail on market disruption-related losses)

• Principal investing gains of $136 million decreased $309 million from 1Q08 levels that included a $466 million benefit from FAS 157 adoption

• Securities losses of $219 million increased $153 million from losses of $66 million in 1Q08 reflecting higher market disruption-related losses in structured products, largely in ABS CDO and subprime related exposure

• Trading account losses of $426 million increased $181 million from losses of $245 million in 1Q08 as strength in global rate products was more than offset by $741 million in market disruption-related losses largely in structured products including ineffectiveness of economic hedges that were largely unwound during the quarter

• Advisory and underwriting revenue of $385 million increased $77 million driven by originations in equities, including fees from Wachovia’s securities issuances, as well as growth in leveraged finance and structured products

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Wachovia 2Q08 Quarterly Earnings Report

• Other income increased $1.4 billion to $505 million on lower market disruption-related losses driven by recoveries on certain leveraged finance exposures

• Provision expense increased $241 million driven by higher losses in residential-related commercial real estate and corporate lending

• Expenses increased $213 million, or 29%, driven by higher revenue-based incentives and severance expense despite $15 million lower retirement-eligible stock compensation expense; down 6% from 2Q07

• Net market disruption-related valuation losses were $565 million and included gains on leveraged finance positions, more than offset by losses from ineffectiveness of economic hedges that were largely unwound, continued losses on structured product warehouses driven by ABS CDO and subprime related exposure and commercial mortgage exposure

Market Disruption-Related Losses, Net

	2008
	Second Quarter									First Quarter
(Pre-tax dollars in millions)	Trading profits (losses)			Securities gains (losses)		Other Income		Total		Trading profits (losses)		Securities gains (losses)		Other Income		Total
Corporate and Investment Bank
ABS CDO and other subprime-related	$	(106	)	(132	)	0		(238	)	(281	)	(67	)	9		(339	)
Commercial mortgage (CMBS)		(116	)	(2	)	(91	)	(209	)	(283	)	0		(238	)	(521	)
Consumer mortgage		(42	)	0		(26	)	(68	)	(187	)	0		(64	)	(251	)
Leveraged finance		(336	)	0		438		102		483		0		(792	)	(309	)
Other		(141	)	(11	)	0		(152	)	(131	)	(4	)	(9	)	(144	)
Total	$	(741	)	(145	)	321		(565	)	(399	)	(71	)	(1,094	)	(1,564	)

Market Disruption-Related Losses, Net

	2007
	Fourth Quarter									Third Quarter
(Pre-tax dollars in millions)	Trading profits (losses)			Securities gains (losses)		Other Income		Total		Trading profits (losses)		Securities gains (losses)	Other Income		Total
Corporate and Investment Bank
ABS CDO and other subprime-related	$	(517	)	(263	)	(38	)	(818	)	(230	)	0	0		(230	)
Commercial mortgage (CMBS)		(238	)	0		(362	)	(600	)	(129	)	0	(359	)	(488	)
Consumer mortgage		(64	)	0		(59	)	(123	)	(41	)	0	(41	)	(82	)
Leveraged finance		183		(3	)	(87	)	93		62		0	(334	)	(272	)
Other		59		0		0		59		(109	)	0	0		(109	)
Total	$	(577	)	(266	)	(546	)	(1,389	)	(447	)	0	(734	)	(1,181	)

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Wachovia 2Q08 Quarterly Earnings Report

CORPORATE LENDING

This sub-segment includes Large Corporate Lending, Leasing and Real Estate Financial Services.

Corporate Lending

Performance Summary

	2008				2007				2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	410		431	417	412	405		(5	)%	1
Fee and other income		69		154	148	135	140		(55	)	(51	)
Intersegment revenue		10		13	18	16	19		(23	)	(47	)
Total revenue (Tax-equivalent)		489		598	583	563	564		(18	)	(13	)
Provision for credit losses		350		132	103	2	(1	)	—		—
Noninterest expense		128		141	137	139	148		(9	)	(14	)
Income taxes (Tax-equivalent)		4		119	126	153	152		(97	)	(97	)
Segment earnings	$	7		206	217	269	265		(97	)%	(97	)
Performance and other data
Economic profit	$	(20	)	45	65	81	97		—	%	—
Risk adjusted return on capital (RAROC)		9.82	%	13.74	15.34	17.12	19.20		—		—
Economic capital, average	$	6,739		6,627	5,922	5,266	4,778		2		41
Cash overhead efficiency ratio (Tax-equivalent)		26.21	%	23.61	23.50	24.62	26.22		—		—
Average loans, net	$	65,451		64,035	62,338	58,533	56,083		2		17
Average core deposits	$	4,429		4,534	4,597	5,087	5,054		(2	)%	(12	)

Corporate Lending

Loans Outstanding

	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Large corporate loans	$	17,370	16,880	15,826	14,229	13,269	3	%	31
Real estate financial services		37,588	37,045	36,200	34,361	33,362	1		13
Capital finance		10,493	10,110	10,312	9,943	9,452	4		11
Total loans outstanding	$	65,451	64,035	62,338	58,533	56,083	2	%	17

Page - 24

Wachovia 2Q08 Quarterly Earnings Report

INVESTMENT BANKING

This sub-segment includes Equity Capital Markets, M&A, Fixed Income Division, Loan Syndications and Principal Investing.

Investment Banking

Performance Summary

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	592		485		461		323		268		22	%	—
Fee and other income		362		(530	)	(918	)	(180	)	1,169		—		(69	)
Intersegment revenue		(10	)	(16	)	(21	)	(22	)	(20	)	(38	)	(50	)
Total revenue (Tax-equivalent)		944		(61	)	(478	)	121		1,417		—		(33	)
Provision for credit losses		88		67		9		—		(1	)	31		—
Noninterest expense		663		431		642		317		700		54		(5	)
Income taxes (benefits) (Tax-equivalent)		72		(205	)	(412	)	(70	)	263		—		(73	)
Segment earnings (loss)	$	121		(354	)	(717	)	(126	)	455		—	%	(73	)
Performance and other data
Economic profit	$	(44	)	(513	)	(865	)	(253	)	346		(91	)%	—
Risk adjusted return on capital (RAROC)		8.34	%	(22.21	)	(57.88	)	(12.96	)	48.01		—		—
Economic capital, average	$	6,695		6,223		4,986		4,183		3,737		8		79
Cash overhead efficiency ratio (Tax-equivalent)		70.37	%	(708.47	)	(134.16	)	265.36		49.41		—		—
Average loans, net	$	27,579		23,550		17,018		13,623		11,121		17		—
Average core deposits	$	9,121		9,456		10,759		10,848		10,538		(4	)%	(13	)

Investment Banking

	2008					2007					2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Total revenue
Fixed income global rate products	$	264		132		89		135		150	—	%	76
Fixed income credit products (Excluding loan portfolio)		289		248		169		202		215	17		34
Fixed income structured products/other		634		520		440		471		588	22		8
Market disruption losses		(565	)	(1,564	)	(1,389	)	(1,181	)	—	64		—
Total fixed income		622		(664	)	(691	)	(373	)	953	—		(35	)
Principal investing		115		414		23		361		300	(72	)	(62	)
Total equities/M&A/other		207		189		190		133		164	10		26
Total revenue		944		(61	)	(478	)	121		1,417	—		(33	)
Trading-related revenue
Net interest income (Tax-equivalent)		122		78		51		34		43	56		—
Trading account profits (losses)		(365	)	(245	)	(562	)	(381	)	191	49		—
Other fee income		185		188		181		140		160	(2	)	16
Total net trading-related revenue (Tax-equivalent)		(58	)	21		(330	)	(207	)	394	—		—
Principal investing balances
Direct investments		1,612		1,636		1,554		1,534		1,197	(1	)	35
Fund investments		1,081		1,052		789		776		779	3		39
Total principal investing balances	$	2,693		2,688		2,343		2,310		1,976	—	%	36

Investment Banking

	2008				2007					2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Total revenue
Investment banking (a)	$	464	399		402		423		482	16	%	(4	)
Capital markets (b)		365	(874	)	(903	)	(663	)	635	—		(43	)
Principal investing		115	414		23		361		300	(72	)	(62	)
Total revenue	$	944	(61	)	(478	)	121		1,417	—	%	(33	)

(a) Activities relating to corporate customers.

(b) Activities relating to institutional clients.

Page - 25

Wachovia 2Q08 Quarterly Earnings Report

TREASURY AND INTERNATIONAL TRADE FINANCE

This sub-segment includes Treasury Services, International Correspondent Banking and Trade Finance.

Treasury and International Trade Finance

Performance Summary

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	122		112		110		104		100		9	%	22
Fee and other income		226		218		218		220		213		4		6
Intersegment revenue		(52	)	(47	)	(47	)	(46	)	(49	)	11		6
Total revenue (Tax-equivalent)		296		283		281		278		264		5		12
Provision for credit losses		—		(2	)	—		(1	)	—		—		—
Noninterest expense		169		175		174		170		172		(3	)	(2	)
Income taxes (Tax-equivalent)		46		40		38		40		33		15		39
Segment earnings	$	81		70		69		69		59		16	%	37
Performance and other data
Economic profit	$	68		56		56		58		47		21	%	45
Risk adjusted return on capital (RAROC)		82.71	%	70.21		74.12		77.84		68.15		—		—
Economic capital, average	$	382		383		355		342		335		—		14
Cash overhead efficiency ratio (Tax-equivalent)		57.09	%	61.70		61.78		60.98		65.13		—		—
Average loans, net	$	13,612		13,461		12,309		10,813		9,540		1		43
Average core deposits	$	18,132		19,633		20,858		21,253		21,121		(8	)%	(14	)

• Total treasury services product revenues for the company were $773 million in 2Q08 vs. $723 million in 1Q08 and $700 million in 2Q07

Page - 26

Wachovia 2Q08 Quarterly Earnings Report

CAPITAL MANAGEMENT

This segment includes Asset Management and Retail Brokerage Services.

Capital Management

Performance Summary

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(Dollars in millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	308		281		320		268		260		10	%	18
Fee and other income		1,995		2,191		2,210		1,444		1,536		(9	)	30
Intersegment revenue		(8	)	(10	)	(11	)	(8	)	(11	)	(20	)	(27	)
Total revenue (Tax-equivalent)		2,295		2,462		2,519		1,704		1,785		(7	)	29
Provision for credit losses		—		—		—		—		—		—		—
Noninterest expense		1,827		1,855		1,936		1,241		1,294		(2	)	41
Income taxes (Tax-equivalent)		171		221		214		169		179		(23	)	(4	)
Segment earnings	$	297		386		369		294		312		(23	)%	(5	)
Performance and other data
Economic profit	$	239		327		310		258		275		(27	)%	(13	)
Risk adjusted return on capital (RAROC)		56.70	%	72.26		69.14		88.96		92.77		—		—
Economic capital, average	$	2,105		2,144		2,119		1,310		1,348		(2	)	56
Cash overhead efficiency ratio (Tax-equivalent)		79.61	%	75.34		76.90		72.82		72.47		—		—
Lending commitments	$	1,544		1,348		1,281		1,164		1,169		15		32
Average loans, net		2,881		2,562		2,295		2,142		1,663		12		73
Average core deposits	$	48,647		43,084		38,019		31,489		31,221		13		56
FTE employees		29,680		29,841		29,891		17,908		17,905		(1	)%	66

Capital Management Key Metrics

	2008			2007			2Q08 vs 1Q08		2Q08 vs 2Q07
(Dollars in billions)	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
Equity assets	$	72.7	74.1	83.7	84.7	85.3	(2	)%	(15	)
Fixed income assets		108.6	117.8	122.9	137.6	135.1	(8	)	(20	)
Money market assets		64.6	66.8	68.1	63.1	61.1	(3	)	6
Total assets under management (a)		245.9	258.7	274.7	285.4	281.5	(5	)	(13	)
Gross fluctuating mutual fund sales	$	1.7	2.6	2.5	2.0	2.7	(35	)	(37	)
Full-service financial advisors series 7		14,632	14,583	14,607	8,391	8,303	—		76
Financial center advisors series 6		4,308	4,059	3,296	2,996	2,531	6		70
Broker client assets	$	1,107.1	1,118.5	1,170.4	807.2	795.8	(1	)	39
Customer receivables including margin loans	$	6.6	6.3	6.4	4.7	4.8	5		38
Traditional brokerage offices		1,512	1,527	1,539	786	774	(1	)	95
Banking centers with brokerage services		2,664	2,569	2,203	2,038	1,834	4	%	45

(a) Includes $37 billion in assets managed for Wealth Management, which are also reported in that segment.

SEGMENT EARNINGS OF $297 MILLION, DOWN 23% AND 5% FROM 2Q07

• Revenue of $2.3 billion down 7% driven by market disruption-related valuation losses and lower asset-based fees; up 29% from 2Q07

— Net interest income increased 10% on retail brokerage deposit growth of $5.7 billion driven by A.G. Edwards, as well as improving spreads

— Fee and other income decreased $196 million, or 9%, as stable retail brokerage commissions were overshadowed by market disruption-related valuation losses of $118 million, including $89 million of securities impairments relating to the liquidation of an Evergreen fund, and the effect of lower market valuations, primarily in retail brokerage managed accounts; up $459 million, or 30%, from 2Q07

• Expenses decreased $28 million, or 2%, driven by a $30 million reduction in retirement-eligible employee stock compensation expense, lower commissions and benefits expense partially offset by higher sundry and other expenses; up 41% from 2Q07 largely reflecting merger activity and legal costs

• Assets under management decreased 5% primarily driven by net asset outflows including seasonal outflows from one institutional account

• Growth in high producing financial advisors (FAs) was largely offset by lower-producing FA attrition

— Strong growth in Series 6 financial center advisors throughout footprint, including Western region

• A.G. Edwards merger integration and business fundamentals proceeding as expected

Page - 27

Wachovia 2Q08 Quarterly Earnings Report

RETAIL BROKERAGE SERVICES

This sub-segment consists of the retail brokerage, and annuity and reinsurance businesses.

Retail Brokerage Services

Performance Summary

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	296		267		313		262		254		11	%	17
Fee and other income		1,832		1,898		1,933		1,202		1,227		(3	)	49
Intersegment revenue		(7	)	(9	)	(11	)	(7	)	(11	)	(22	)	(36	)
Total revenue (Tax-equivalent)		2,121		2,156		2,235		1,457		1,470		(2	)	44
Provision for credit losses		—		—		—		—		—
Noninterest expense		1,621		1,634		1,723		1,038		1,076		(1	)	51
Income taxes (Tax-equivalent)		184		190		187		154		143		(3	)	29
Segment earnings	$	316		332		325		265		251		(5	)%	26
Performance and other data
Economic profit	$	263		279		272		235		219		(6	)%	20
Risk adjusted return on capital (RAROC)		66.86	%	69.06		67.42		94.13		88.54		—		—
Economic capital, average	$	1,902		1,928		1,914		1,116		1,133		(1	)	68
Cash overhead efficiency ratio (Tax-equivalent)		76.49	%	75.79		77.08		71.33		73.18		—		—
Average loans, net	$	2,864		2,521		2,273		2,106		1,646		14		74
Average core deposits	$	48,343		42,631		37,614		31,071		30,857		13	%	57

Retail Brokerage Transaction

The Retail Brokerage Services sub-segment results shown in the above table include 100% of the results of the Wachovia Securities retail brokerage business which is the combination of Wachovia and Prudential Financial’s retail brokerage operations. The combined entity is owned by Wachovia Securities Financial Holdings, LLC (“WSFH”), which is a consolidated subsidiary of Wachovia Corporation for GAAP purposes.

As a result of Wachovia's contribution to WSFH of the retail securities business of A.G. Edwards on January 1, 2008, Prudential Financial's percentage interest in WSFH has been diluted as of that date based on the value of the contributed business relative to the value of WSFH. Although the adjustment in Prudential Financial’s interest was effective as of the January 1, 2008, contribution date, the valuations necessary to calculate the precise reduction in that percentage interest are not yet complete. Based on currently available information, Wachovia estimates that Prudential Financial's percentage interest will be diluted from its pre-contribution interest of 38% to approximately 23% as a result of the A.G. Edwards contribution.

Prudential Financial's minority interest is included in minority interest expense reported in the Parent (see page 30) and in Wachovia Corporation's consolidated statements of income on a GAAP basis, which differs from our segment reporting as noted on page 1. For the three months ended June 30, 2008, Prudential Financial's pre-tax minority interest on a GAAP basis was $32 million. This amount may be adjusted higher or lower in a subsequent quarter if the final valuations differ from Wachovia's current estimate.

The Retail Brokerage Services sub-segment results reported in the above table also include our Insurance Services business, as well as additional corporate allocations not included in the Wachovia Securities Financial Holdings results.

Page - 28

Wachovia 2Q08 Quarterly Earnings Report

ASSET MANAGEMENT

This sub-segment consists of the mutual fund business and customized investment advisory services, including retirement services.

Asset Management

Performance Summary

	2008					2007				2Q08 vs 1Q08		2Q08 vs 2Q07
(In millions)	Second Quarter			First Quarter		Fourth Quarter	Third Quarter		Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	12		14		7	6		5	(14	)%	—
Fee and other income		165		295		279	244		312	(44	)	(47	)
Intersegment revenue		(1	)	(1	)	—	(1	)	—	—		—
Total revenue (Tax-equivalent)		176		308		286	249		317	(43	)	(44	)
Provision for credit losses		—		—		—	—		—	—		—
Noninterest expense		209		224		217	206		222	(7	)	(6	)
Income taxes (Tax-equivalent)		(13	)	31		26	15		35	—		—
Segment earnings	$	(20	)	53		43	28		60	—	%	—
Performance and other data
Economic profit	$	(25	)	47		37	22		55	—	%	—
Risk adjusted return on capital (RAROC)		(39.89	)%	99.16		82.68	56.73		112.79	—		—
Economic capital, average	$	203		216		205	194		215	(6	)	(6	)
Cash overhead efficiency ratio (Tax-equivalent)		117.97	%	72.81		76.33	82.50		70.01	—		—
Average loans, net	$	17		41		22	36		17	(59	)	—
Average core deposits	$	304		453		405	418		364	(33	)%	(16	)

Capital Management Eliminations

In addition to the above sub-segments, Capital Management results include eliminations between business units. Certain brokerage commissions earned on mutual fund sales by our brokerage sales force are eliminated and deferred in the consolidation of Capital Management reported results. In 2Q08, brokerage revenue and expense eliminations were a reduction of $2 million and $3 million, respectively.

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Wachovia 2Q08 Quarterly Earnings Report

PARENT

This sub-segment includes the central money book, investment portfolio, some consumer real estate and mortgage assets, minority interest in consolidated subsidiaries, the cross-border leveraged lease portfolio, businesses being wound down or divested, goodwill impairment charge, other intangible amortization and eliminations.

Parent

Performance Summary

	2008					2007						2Q08 vs 1Q08		2Q08 vs 2Q07
(Dollars in millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income statement data
Net interest income (Tax-equivalent)	$	(961	)	(131	)	(218	)	(173	)	(100	)	—	%	—
Fee and other income		(694	)	(447	)	(58	)	193		45		55		—
Intersegment revenue		—		—		—		(3	)	2		—		—
Total revenue (Tax-equivalent)		(1,655	)	(578	)	(276	)	17		(53	)	—		—
Provision for credit losses		4,202		2,060		1,058		194		25		—		—
Noninterest expense		883		314		423		485		378		—		—
Minority interest		141		198		118		189		139		(29	)	1
Income taxes (benefits) (Tax-equivalent)		(2,682	)	(1,063	)	(856	)	(498	)	(322	)	—		—
Dividends on preferred shares		193		43		—		—		—		—		—
Segment earnings (loss)	$	(4,392	)	(2,130	)	(1,019	)	(353	)	(273	)	—	%	—
Performance and other data
Economic profit (loss)	$	(1,689	)	(840	)	(481	)	(318	)	(246	)	—	%	—
Risk adjusted return on capital (RAROC)		(447.84	)%	(169.74	)	(83.78	)	(41.68	)	(29.52	)	—		—
Economic capital, average	$	1,480		1,867		2,014		2,395		2,436		(21	)	(39	)
Cash overhead efficiency ratio (Tax-equivalent)		(47.55	)%	(36.54	)	(113.98	)	1,988.83		(496.52	)	—		—
Lending commitments	$	543		538		599		529		569		1		(5	)
Average loans, net		24,486		28,407		30,722		28,487		30,187		(14	)	(19	)
Average core deposits	$	2,401		2,729		2,484		3,032		2,641		(12	)	(9	)
FTE employees		24,798		24,714		25,128		24,020		23,562		—	%	5

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Wachovia 2Q08 Quarterly Earnings Report

MERGER-RELATED AND RESTRUCTURING EXPENSES

A.G. Edwards Transaction One-time Costs (In millions)	Net Merger- Related and Restructuring Expenses		Exit Cost Purchase Accounting Adjustments(b)	Total
Total estimated costs and expenses (a)	$	1,204	196	1,400
Actual expenses
Second quarter 2008	$	205	20	225
First quarter 2008		206	35	241
Total 2007		124	43	167
Total actual expenses	$	535	98	633

(a) Represents the original estimate at the time of the deal announcement.

(b) These adjustments represent incremental costs related to combining the two companies and are specifically attributable to A.G. Edwards’ business.

Examples include employee termination costs, employee relocation costs, contract cancellations including leases and closing redundant A.G. Edwards acquired facilities.

These adjustments are reflected in goodwill and are not charges against income.

Golden West Transaction One-time Costs (In millions)	Net Merger- Related and Restructuring Expenses		Exit Cost Purchase Accounting Adjustments(b)		Total
Total estimated costs and expenses (a)	$	288	192		480
Actual expenses
Second quarter 2008	$	44	(8	)	36
First quarter 2008		35	—		35
Total 2007		118	173		291
Total 2006		40	41		81
Total actual expenses	$	237	206		443

(a) Represents the original estimate at the time of the deal announcement.

(b) These adjustments represent incremental costs related to combining the two companies and are specifically attributable to Golden West’s business.

Examples include employee termination costs, employee relocation costs, contract cancellations including leases and closing redundant Golden West acquired facilities.

These adjustments are reflected in goodwill and are not charges against income.

Merger-Related and Restructuring Expenses (Income Statement Impact)

	2008					2007
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Total Golden West merger-related and restructuring expenses	$	44		35		64		32		20
Total A.G. Edwards merger-related and restructuring expenses		205		206		121		3		—
Other merger-related and restructuring expenses		2		—		2		1		12
Net merger-related and restructuring expenses		251		241		187		36		32
Minority interest share in merger-related and restructuring expenses		(43	)	(43	)	(11	)	—		—
Income taxes (benefits)		(80	)	(75	)	(67	)	(15	)	(12	)
After-tax net merger-related and restructuring expenses	$	128		123		109		21		20

Goodwill and Other Intangibles Recorded in the A.G. Edwards Transaction (In millions)	2008					2007
	Second Quarter			First Quarter		Fourth Quarter
Purchase price less former A.G. Edwards ending tangible stockholders’ equity at October 1, 2007	$	4,598		4,598		4,600
Fair value purchase accounting adjustments (a)
Investments		1		(1	)	(1	)
Restricted stock awards		(14	)	(14	)	—
CRE		(31	)	(31	)	—
Other assets		10		10		8
Deposits, short-term borrowings, long-term debt and other liabilities		(22	)	(23	)	(27	)
Income taxes		40		41		11
Total fair value purchase accounting adjustments		(16	)	(18	)	(9	)
Exit cost purchase accounting adjustments (b)
Personnel and employee termination benefits		59		48		22
Other liabilities		13		8		2
Contract cancellations		4		3		—
Occupancy and equipment		3		—		—
Other		19		19		19
Total pre-tax exit costs		98		78		43
Income taxes		(31	)	(24	)	(10	)
Total after-tax exit cost purchase accounting adjustments (One-time costs)		67		54		33
Total purchase intangibles		4,649		4,634		4,624
Customer and other intangibles (Net of income taxes)		513		513		513
Goodwill, end of period	$	4,136		4,121		4,111

(a) These amounts represent fair value adjustments to adjust assets and liabilities of the former A.G. Edwards to their fair values as of October 1, 2007.

(b) These adjustments represent incremental costs relating to combining the two companies and are specifically attributable to those businesses of the former A.G. Edwards.

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Wachovia 2Q08 Quarterly Earnings Report

EXPLANATION OF OUR USE OF CERTAIN NON-GAAP FINANCIAL MEASURES

In addition to results presented in accordance with GAAP, this quarterly earnings report includes certain non-GAAP financial measures, including those presented on pages 1 and 3 under the captions “Earnings Reconciliation”, and “Other Financial Measures”, with the sub-headings — “Earnings excluding goodwill impairment, merger-related and restructuring expenses, and discontinued operations” and — “Earnings excluding goodwill impairment, merger-related and restructuring expenses, other intangible amortization and discontinued operations”, and which are reconciled to GAAP financial measures on pages 33-36. In addition, in this quarterly earnings report 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 and discontinued operations 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 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 our business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures.

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Wachovia 2Q08 Quarterly Earnings Report

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

Reconciliation of Certain Non-GAAP Financial Measures

		2008					2007
(In millions)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Income (loss) from continuing operations
Net income (loss) (GAAP)	A	$	(8,662	)	(664	)	51		1,618		2,341
Discontinued operations, net of income taxes (GAAP)			—		—		142		88		—
Income (loss) from continuing operations (GAAP)			(8,662	)	(664	)	193		1,706		2,341
Merger-related and restructuring expenses (GAAP)			128		123		108		22		20
Goodwill impairment (GAAP)			6,056		—		—		—		—
Income (loss) excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	B		(2,478	)	(541	)	301		1,728		2,361
Other intangible amortization (GAAP)			66		64		65		59		66
Income (loss) excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations	C	$	(2,412	)	(477	)	366		1,787		2,427
Income (loss) available to Common Stockholders
Net income (loss) available to common shareholders (GAAP)	D	$	(8,855	)	(707	)	51		1,618		2,341
Discontinued operations, net of income taxes (GAAP)			—		—		142		88		—
Income (loss) from continuing operations available to common stockholders			(8,855	)	(707	)	193		1,706		2,341
Merger-related and restructuring expenses (GAAP)			128		123		108		22		20
Goodwill impairment (GAAP)			6,056		—		—		—		—
Income (loss) excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	E		(2,671	)	(584	)	301		1,728		2,361
Other intangible amortization (GAAP)			66		64		65		59		66
Income (loss) available to common stockholders excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations	F	$	(2,605	)	(520	)	366		1,787		2,427
Return on average common stockholders’ equity
Average common stockholders’ equity (GAAP)	G	$	72,579		74,697		73,599		69,857		69,317
Merger-related and restructuring expenses and other (GAAP)			191		110		242		124		14
Goodwill impairment (GAAP)			998		—		—		—		—
Discontinued operations (GAAP)			—		—		(142	)	(88	)	—
Average common stockholders’ equity, excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	H		73,768		74,807		73,699		69,893		69,331
Average intangible assets (GAAP)	I		(44,998	)	(45,211	)	(44,941	)	(40,198	)	(40,328	)
Average tangible common stockholders’ equity, excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	J	$	28,770		29,596		28,758		29,695		29,003
Return on average common stockholders’ equity GAAP	D/G		(49.07	)%	(3.81	)	0.28		9.19		13.54
Excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	E/H		(14.56	)	(3.14	)	1.62		9.81		13.66
Return on average tangible common stockholders’ equity
GAAP	D/G+I		(129.14	)	(9.64	)	0.71		21.64		32.38
Excluding merger-related and restructuring expenses, goodwill impairment, other intangible amortization and discontinued operations	F/J		(36.42	)%	(7.07	)	5.05		23.88		33.57

Table continued on next page.

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Wachovia 2Q08 Quarterly Earnings Report

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

Reconciliation of Certain Non-GAAP Financial Measures

		2008					2007
(In millions)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Return on average assets
Average assets (GAAP)	K	$	796,437		783,593		763,487		729,004		704,773
Average intangible assets (GAAP)			(44,998	)	(45,211	)	(44,941	)	(40,198	)	(40,328	)
Average tangible assets (GAAP)	L	$	751,439		738,382		718,546		688,806		664,445
Average assets (GAAP)		$	796,437		783,593		763,487		729,004		704,773
Merger-related and restructuring expenses (GAAP)			191		110		242		124		14
Goodwill impairment (GAAP)			998		—		—		—		—
Discontinued operations (GAAP)			—		—		(142	)	(88	)	—
Average assets, excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	M		797,626		783,703		763,587		729,040		704,787
Average intangible assets (GAAP)			(44,998	)	(45,211	)	(44,941	)	(40,198	)	(40,328	)
Average tangible assets, excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	N	$	752,628		738,492		718,646		688,842		664,459
Return on average assets
GAAP	A/K		(4.37	)%	(0.34	)	0.03		0.88		1.33
Excluding merger-related and restructuring expenses, goodwill impairment and discontinued operations	B/M		(1.25	)	(0.28	)	0.16		0.94		1.34
Return on average tangible assets
GAAP	A/L		(4.64	)	(0.36	)	0.03		0.93		1.41
Excluding merger-related and restructuring expenses, goodwill impairment, other intangible amoritization and discontinued operations	C/N		(1.29	)%	(0.26	)	0.20		1.03		1.47

* The letters included in the column are provided to show how the various ratios presented in the tables on pages 33 through 36 are calculated.

For example, return on average assets on a GAAP basis is calculated by dividing net income (GAAP) by average assets (GAAP) (i.e., A/H), and annualized where appropriate.

Table continued on next page.

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Wachovia 2Q08 Quarterly Earnings Report

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

Reconciliation of Certain Non-GAAP Financial Measures

		2008					2007
(In millions)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Overhead efficiency ratios
Noninterest expense (GAAP)	O	$	12,284		5,441		5,786		4,525		4,890
Merger-related and restructuring expenses (GAAP)			(251	)	(241	)	(187	)	(36	)	(32	)
Goodwill impairment (GAAP)			(6,060	)	—		—		—		—
Noninterest expense, excluding merger-related and restructuring expenses and goodwill impairment	P		5,973		5,200		5,599		4,489		4,858
Other intangible amortization (GAAP)			(97	)	(103	)	(111	)	(92	)	(103	)
Noninterest expense, excluding merger-related and restructuring expenses, goodwill impairment and other intangible amoritization	Q	$	5,876		5,097		5,488		4,397		4,755
Net interest income (GAAP)		$	4,290		4,752		4,630		4,551		4,449
Tax-equivalent adjustment			54		53		44		33		38
Net interest income (Tax-equivalent)			4,344		4,805		4,674		4,584		4,487
Fee and other income (GAAP)			3,165		2,777		2,744		2,933		4,240
Total	R	$	7,509		7,582		7,418		7,517		8,727
Retail Brokerage Services, excluding insurance Noninterest expense (GAAP)	S	$	1,582		1,628		1,718		1,033		1,070
Net interest income (GAAP)		$	223		260		305		255		248
Tax-equivalent adjustment			1		1		1		—		—
Net interest income (Tax-equivalent)			224		261		306		255		248
Fee and other income (GAAP)			1,819		1,866		1,907		1,180		1,202
Total	T	$	2,043		2,127		2,213		1,435		1,450
Overhead efficiency ratios
GAAP	O/R		163.58	%	71.76		78.00		60.20		56.02
Excluding merger-related and restructuring expenses and goodwill impairment	P/R		79.55		68.58		75.48		59.73		55.65
Excluding merger-related and restructuring expenses, goodwill impairment and brokerage	P-S/R-T		80.33		65.48		74.54		56.82		52.04
Excluding merger-related and restructuring expenses, goodwill impairment and other intangible amoritization	Q/R		78.26		67.22		73.97		58.51		54.47
Excluding merger-related and restructuring expenses, goodwill impairment, other intangible amoritization and brokerage	Q-S/R-T		78.55	%	63.59		72.43		55.32		50.61

Table continued on next page.

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Wachovia 2Q08 Quarterly Earnings Report

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

Reconciliation of Certain Non-GAAP Financial Measures

		2008					2007
(In millions, except per share data)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
Operating leverage
Operating leverage (GAAP)		$	(6,916	)	509		(1,359	)	(847	)	189
Merger-related and restructuring expenses (GAAP)			9		54		151		4		21
Goodwill impairment (GAAP)			6,060		—		—		—		—
Operating leverage, excluding merger-related and restructuring expenses, and goodwill impairment			(847	)	563		(1,208	)	(843	)	210
Other intangible amortization (GAAP)			(6	)	(9	)	21		(12	)	(13	)
Operating leverage, excluding merger-related and restructuring expenses, goodwill impairment and other intangible amoritization		$	(853	)	554		(1,187	)	(855	)	197
Dividend payout ratios on common shares
Dividends paid per common share	U	$	0.38		0.64		0.64		0.64		0.56
Diluted earnings per common share (GAAP)**	V	$	(4.20	)	(0.36	)	0.03		0.85		1.22
Merger-related and restructuring expenses (GAAP)			0.06		0.06		0.05		—		0.01
Goodwill impairmsent (GAAP)			2.87		—		—		—		—
Other intangible amortization (GAAP)			0.04		0.04		0.03		0.04		0.04
Discontinued operations (GAAP)			—		—		0.07		0.05		—
Diluted earnings per common share, excluding merger-related and restructuring expenses, goodwill impairment, other intangible amoritization and discontinued operations**	W	$	(1.23	)	(0.26	)	0.18		0.94		1.27
Dividend payout ratios
GAAP	U/V		(8.93	)%	(177.78	)	2,133.33		75.29		45.90
Excluding merger-related and restructuring expenses, goodwill impairment, other intangible amoritization and discontinued operations	U/W		(30.49	)%	(246.15	)	355.56		68.09		44.09

* The letters included in the column are provided to show how the various ratios presented in the tables on pages 33 through 36 are calculated.

For example, return on average assets on a GAAP basis is calculated by dividing net income (GAAP) by average assets (GAAP) (i.e., A/H), and annualized where appropriate.

** Calculated using average basic common shares in 2008.

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Wachovia 2Q08 Quarterly Earnings Report

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.

Page - 37

EX-99.D

Exhibit (99)(d)

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

(In millions, except per share data)	June 30, 2008			December 31, 2007
ASSETS
Cash and due from banks	$	15,127		15,124
Interest-bearing bank balances		10,289		3,057
Federal funds sold and securities purchased under resale agreements		21,923		15,449
Total cash and cash equivalents		47,339		33,630
Trading account assets		62,589		55,882
Securities		113,461		115,037
Loans, net of unearned income		488,198		461,954
Allowance for loan losses		(10,744	)	(4,507	)
Loans, net		477,454		457,447
Loans held for sale		8,430		16,772
Premises and equipment		6,667		6,605
Due from customers on acceptances		1,302		1,418
Goodwill		36,993		43,122
Other intangible assets		1,942		2,119
Other assets		56,256		50,864
Total assets	$	812,433		782,896
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		63,393		60,893
Interest-bearing deposits		384,397		388,236
Total deposits		447,790		449,129
Short-term borrowings		55,448		50,393
Bank acceptances outstanding		1,307		1,424
Trading account liabilities		26,305		21,585
Other liabilities		18,656		19,151
Long-term debt		184,401		161,007
Total liabilities		733,907		702,689
Minority interest in net assets of consolidated subsidiaries		3,147		3,335
STOCKHOLDERS’ EQUITY
Preferred stock, Class A, 40 million shares, no par value; 10 million shares, no par value; none issued		—		—
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at June 30, 2008		—		—
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 depositary shares issued and outstanding at June 30, 2008		2,300		2,300
Non-Cumulative Perpetual Class A Preferred Stock, Series K, $1,000 liquidation preference per share, 3.5 million shares issued and outstanding at June 30, 2008		3,500		—
Non-Cumulative Perpetual Convertible Class A Preferred Stock, Series L, $1,000 liquidation preference per share, 4.025 million shares issued and outstanding at June 30, 2008		4,025		—
Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 2.136 billion shares at June 30, 2008		7,121		6,534
Paid-in capital		59,797		56,149
Retained earnings		1,786		13,456
Accumulated other comprehensive income, net		(3,150	)	(1,567	)
Total stockholders’ equity		75,379		76,872
Total liabilities and stockholders’ equity	$	812,433		782,896

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended June 30,				Six Months Ended June 30,
(In millions, except per share data)	2008			2007	2008		2007
INTEREST INCOME
Interest and fees on loans	$	6,187		7,723	13,764		15,341
Interest and dividends on securities		1,530		1,474	3,026		2,952
Trading account interest		522		506	1,093		939
Other interest income		407		647	942		1,258
Total interest income		8,646		10,350	18,825		20,490
INTEREST EXPENSE
Interest on deposits		2,176		3,180	5,117		6,194
Interest on short-term borrowings		418		706	941		1,375
Interest on long-term debt		1,762		2,015	3,725		3,972
Total interest expense		4,356		5,901	9,783		11,541
Net interest income		4,290		4,449	9,042		8,949
Provision for credit losses		5,567		179	8,398		356
Net interest income after provision for credit losses		(1,277	)	4,270	644		8,593
FEE AND OTHER INCOME
Service charges		709		667	1,385		1,281
Other banking fees		518		449	1,016		865
Commissions		910		649	1,824		1,308
Fiduciary and asset management fees		1,355		1,015	2,794		1,968
Advisory, underwriting and other investment banking fees		280		454	541		861
Trading account profits (losses)		(510	)	195	(818	)	323
Principal investing		136		298	582		346
Securities gains (losses)		(808	)	23	(1,013	)	76
Other income		575		490	(369	)	946
Total fee and other income		3,165		4,240	5,942		7,974
NONINTEREST EXPENSE
Salaries and employee benefits		3,435		3,122	6,695		6,094
Occupancy		377		331	756		643
Equipment		317		309	640		616
Marketing		95		78	192		140
Communications and supplies		184		178	370		351
Professional and consulting fees		218		205	414		382
Goodwill impairment		6,060		—	6,060		—
Other intangible amortization		97		103	200		221
Merger-related and restructuring expenses		251		32	492		42
Sundry expense		1,250		532	1,906		1,022
Total noninterest expense		12,284		4,890	17,725		9,511
Minority interest in income of consolidated subsidiaries		97		139	252		275
Income (loss) before income taxes (benefits)		(10,493	)	3,481	(11,391	)	6,781
Income taxes (benefits)		(1,831	)	1,140	(2,065	)	2,138
Net income (loss)		(8,662	)	2,341	(9,326	)	4,643
Dividends on preferred stock		193		—	236		—
Net income (loss) available to common stockholders	$	(8,855	)	2,341	(9,562	)	4,643
PER COMMON SHARE DATA (after preferred stock dividends)
Basic earnings
Net income (loss) available to common stockholders	$	(4.20	)	1.24	(4.69	)	2.45
Diluted earnings
Net income (loss) available to common stockholders		(4.20	)	1.22	(4.69	)	2.42
Cash dividends	$	0.38		0.56	1.02		1.12
AVERAGE COMMON SHARES
Basic		2,111		1,891	2,037		1,892
Diluted		2,119		1,919	2,048		1,922