2. Forward Looking Statements
This presentation contains forward-looking statements, including statements about the financial
conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-
looking statements involve certain risks and uncertainties. Factors that may cause actual results or
earnings to differ materially from such forward-looking statements include, among others, the
following: 1) projected business increases following process changes and other investments are lower
than expected; 2) competitive pressure among financial services companies increases significantly; 3)
general economic conditions are less favorable than expected; 4) political conditions including the
threat of future terrorist activity and related actions by the United States abroad may adversely affect
the company’s businesses and economic conditions as a whole; 5) changes in the interest rate
environment reduce interest margins and impact funding sources; 6) changes in foreign exchange
rates increases exposure; 7) changes in market rates and prices may adversely impact the value of
financial products; 8) legislation or regulatory environments, requirements or changes adversely affect
the businesses in which the company is engaged; 9) changes in accounting standards, rules or
interpretations, 10) litigation liabilities, including costs, expenses, settlements and judgments, may
adversely affect the company or its businesses; 11) mergers and acquisitions and their integration
into the company; and 12) decisions to downsize, sell or close units or otherwise change the business
mix of any of the company. For further information regarding Bank of America Corporation, please
read the Bank of America reports filed with the SEC and available at www.sec.gov.
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3. Why Talk About Payments?
Payments
Any financial transaction used to transfer value between two
parties in exchange for goods or services
Consumers
BAC
Payments
Small Wholesale
Businesses Customers
3
4. Payments are Big Business for Banks
Payments drive more revenue for
banks than any other business
U.S. Banking Market Revenue Pools
2005 Estimates ($B)
$224
$120
$102
$75
$60
Payments Mortgage Capital Brokerage Asset
Markets Mgmt
4 Source: McKinsey Global Concepts, Mercer Oliver Wyman, BAC Finance, BCG
5. Payments Activity at Bank of America
2006 Revenue from Payments Businesses ($B) Payments Revenue by Activity ($B)
+14%
12%
4% 11%
Non- Other* Interchange 10% +12%
Payments +11%
16% Treasury +8%
Services
48%
Fee 33% 35% 36%
Consumer
30% DDA
-1% +1%
Payments
Net
Interest 57% 54% 52%
52%
Income
49% Credit
Card
Total Payment 2005 2006 2007
Products
Source: Payments revenue data is managed revenue
-2005, 2006 data are Actuals
5 -2007 Forecast data are as of 11/1/06
* Other: Includes ATM and Merchant Acquiring
6. Bank of America is the Payments Leader
• Leads in the fastest growing
payment businesses
Industry Consumer Transaction Volumes
2005 - 2007 CAGR – #1 debit card (signature & PIN)
– #1 Online banking
– #1 ACH receipts
PIN Debit 18%
– #1 Credit card
– #2 Merchant card acceptance
Sig. Debit 18%
• Leverages scale to drive low cost
ACH 13% position
• Targets strategic initiatives to
Credit Card 5%
address slow growth pay types
– #1 Check Image Exchange
Cash* 0%
– #1 Remote Deposit Capture
-9% Check – Investments in Enterprise Cash
Logistics
Source: McKinsey Global Concepts Payments Map
6 * Cash estimates from BAC, McKinsey estimates at -3%
Total payment transaction trends are expected to be similar to the Consumer trends above
7. How did we get Here?
• Payments growth through mergers and acquisitions
– A number of our acquisitions fill gaps in our capability
• Fleet – Northeast distribution
• National Processing Company – mid-market & larger corporation merchant services
• MBNA – card scale and affinity products
• Strong understanding of the mechanics of the payments business
– Robust, end-to-end view of payments
– Use of Six Sigma tools to exploit opportunities for cost savings and revenue
enhancement
• Established Payments Leadership Council – driving integration, innovation and
execution across the enterprise
Result: We’re the number one retail and wholesale payments franchise in the
world, with more scale than our competitors – and we’re focused on leveraging
our assets to drive even more value.
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8. What Differentiates Bank of America’s Approach?
Enterprise view of payments provides insight that focuses on the
highest impact cost opportunities, revenue opportunities, and
product and service innovation
Innovation
Service Excellence
Operational Excellence
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9. Check 21 – Operational Excellence
Image Exchange Drives Operating Cost Saves
Image Exchange Volume
200
IE Receive
Millions
IE Send
100
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2006
Innovation
Service Excellence
9 Operational Excellence
10. Check 21 – Service Excellence
Remote Deposit Product Drives Revenue and Client Delight
Client Side Capture Growth
1400
18
14 1000
Millions
Account
10 Volume
600
6
200
2
Jan Feb Mar April May June July Aug Sept Oct Nov Dec
2006
Innovation
Service
Excellence
10 Operational Excellence
11. Check 21 – Innovation
Image ATMs Provide Opportunities for Innovation
Image ATM Growth
350
1000
250
Thousands
Image Enabled ATMs
600 Image ATM Deposits
150
200
50
June July Aug Sept Oct Nov Dec Jan
Innovation 2006
Service Excellence
11 Operational Excellence
12. Image ATM – A Future of Possibilities
Cash deposits are Deposit displayed Receipts are Images sent to
validated and on screen printed with the Universal
given immediate images of checks Landing Zone™
credit
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13. Enhancing Value Through Payments –
Retail Fuel Example
Fuel Payment Business System • Enterprise view helps us focus on critical
industries with greatest value creation
potential
• Retail fuel is one of those industries
• Scale and scope in specific segments
help us better serve all our customers
• Leader in merchant card acceptance in
retail fuel sector
• National footprint matches most major fuel
retailers
• Leadership in cash processing
• 17,000 ATMs, with more than 1,000 at fuel
retailers like ExxonMobil and Valero
Our leadership and integrated
approach allow us to better meet the
needs of all our customers
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14. Bank of America – Positioned for Payments Growth
• Diversity and scale of payments channels, products and customers
• Track record of using efficiency as an advantage
• Intense focus on integration, innovation, information, investment – and
execution – within our payments business
– Innovation is critical to our success
– Innovation drives value
• Giving customers more choices deepens relationships
Bank of America has all of the pieces in place to drive
unmatched growth in payments
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