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

$