PAGE 17 WACHOVIA CORPORATION AND SUBSIDIARIES NET INTEREST INCOME SUMMARIES (Unaudited) THIRD QUARTER 2004 Average Interest Rates Average Income/ Earned/ (In millions) Balances Expense Paid ASSETS Interest-bearing bank balances $3,153 12 1.52 % Federal funds sold and securities purchased under resale agreements 26,419 96 1.44 Trading account assets 32,052 348 4.34 Securities 101,493 1,237 4.88 Loans Commercial Commercial, financial and agricultural 58,278 642 4.40 Real estate - construction and other 6,683 67 4.02 Real estate - mortgage 14,877 170 4.54 Lease financing 9,692 178 7.33 Foreign 7,330 47 2.51 Total commercial 96,860 1,104 4.54 Consumer Real estate secured 54,288 732 5.38 Student loans 10,145 97 3.80 Installment loans 7,259 107 5.86 Total consumer 71,692 936 5.21 Total loans 168,552 2,040 4.83 Loans held for sale 17,119 186 4.34 Other earning assets 11,121 96 3.43 Total earning assets excluding derivatives 359,909 4,015 4.45 Risk management derivatives (a) - 349 0.39 Total earning assets including derivatives 359,909 4,364 4.84 Cash and due from banks 11,159 Other assets 53,331 Total assets $424,399 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing deposits Savings and NOW accounts 73,171 93 0.51 Money market accounts 81,525 197 0.96 Other consumer time 26,860 180 2.68 Foreign 7,453 27 1.42 Other time 7,803 39 1.98 Total interest-bearing deposits 196,812 536 1.08 Federal funds purchased and securities sold under repurchase agreements 47,052 164 1.39 Commercial paper 12,065 43 1.42 Securities sold short 12,388 96 3.09 Other short-term borrowings 6,042 15 0.91 Long-term debt 39,951 404 4.05 Total interest-bearing liabilities excluding derivatives 314,310 1,258 1.60 Risk management derivatives (a) - 78 0.09 Total interest-bearing liabilities including derivatives 314,310 1,336 1.69 Noninterest-bearing deposits 51,433 Other liabilities 25,410 Stockholders' equity 33,246 Total liabilities and stockholders' equity $424,399 Interest income and rate earned - including derivatives $4,364 4.84 % Interest expense and equivalent rate paid - including derivatives 1,336 1.48 Net interest income and margin - including derivatives $3,028 3.36 % (a) The rates earned and the rates paid on risk management derivatives are based on off-balance sheet notional amounts. The fair value of these instruments is included in other assets and other liabilities. PAGE 17 WACHOVIA CORPORATION AND SUBSIDIARIES NET INTEREST INCOME SUMMARIES (Unaudited) SECOND QUARTER 2004 Average Interest Rates Average Income/ Earned/ (In millions) Balances Expense Paid ASSETS Interest-bearing bank balances $4,015 11 1.13 % Federal funds sold and securities purchased under resale agreements 23,800 62 1.05 Trading account assets 26,135 260 3.98 Securities 100,209 1,196 4.77 Loans Commercial Commercial, financial and agricultural 56,648 599 4.25 Real estate - construction and other 6,309 56 3.56 Real estate - mortgage 15,029 158 4.21 Lease financing 7,011 180 10.28 Foreign 7,110 41 2.32 Total commercial 92,107 1,034 4.51 Consumer Real estate secured 52,389 691 5.29 Student loans 9,941 90 3.63 Installment loans 9,205 126 5.48 Total consumer 71,535 907 5.08 Total loans 163,642 1,941 4.76 Loans held for sale 15,603 161 4.12 Other earning assets 11,443 82 2.91 Total earning assets excluding derivatives 344,847 3,713 4.32 Risk management derivatives (a) - 371 0.43 Total earning assets including derivatives 344,847 4,084 4.75 Cash and due from banks 11,254 Other assets 54,973 Total assets $411,074 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing deposits Savings and NOW accounts 70,205 78 0.45 Money market accounts 76,850 172 0.90 Other consumer time 26,288 176 2.69 Foreign 7,110 20 1.14 Other time 7,773 34 1.76 Total interest-bearing deposits 188,226 480 1.03 Federal funds purchased and securities sold under repurchase agreements 46,620 116 1.00 Commercial paper 12,382 32 1.04 Securities sold short 10,571 73 2.78 Other short-term borrowings 6,013 11 0.80 Long-term debt 37,840 378 3.99 Total interest-bearing liabilities excluding derivatives 301,652 1,090 1.45 Risk management derivatives (a) - 91 0.12 Total interest-bearing liabilities including derivatives 301,652 1,181 1.57 Noninterest-bearing deposits 50,466 Other liabilities 26,460 Stockholders' equity 32,496 Total liabilities and stockholders' equity $411,074 Interest income and rate earned - including derivatives $4,084 4.75 % Interest expense and equivalent rate paid - including derivatives 1,181 1.38 Net interest income and margin - including derivatives $2,903 3.37 % (a) The rates earned and the rates paid on risk management derivatives are based on off-balance sheet notional amounts. The fair value of these instruments is included in other assets and other liabilities. PAGE 18 WACHOVIA CORPORATION AND SUBSIDIARIES NET INTEREST INCOME SUMMARIES (Unaudited) FIRST QUARTER 2004 Average Interest Rates Average Income/ Earned/ (In millions) Balances Expense Paid ASSETS Interest-bearing bank balances $3,237 10 1.18 % Federal funds sold and securities purchased under resale agreements 24,806 61 0.99 Trading account assets 20,956 220 4.21 Securities 98,222 1,221 4.97 Loans Commercial Commercial, financial and agricultural 55,476 576 4.18 Real estate - construction and other 6,022 53 3.52 Real estate - mortgage 15,241 160 4.23 Lease financing 6,945 183 10.52 Foreign 6,684 41 2.49 Total commercial 90,368 1,013 4.50 Consumer Real estate secured 50,879 705 5.55 Student loans 8,908 78 3.53 Installment loans 9,026 130 5.80 Total consumer 68,813 913 5.32 Total loans 159,181 1,926 4.86 Loans held for sale 12,759 131 4.12 Other earning assets 11,159 84 3.02 Total earning assets excluding derivatives 330,320 3,653 4.43 Risk management derivatives (a) - 408 0.50 Total earning assets including derivatives 330,320 4,061 4.93 Cash and due from banks 10,957 Other assets 57,411 Total assets $398,688 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing deposits Savings and NOW accounts 65,366 70 0.43 Money market accounts 69,208 154 0.90 Other consumer time 27,496 189 2.76 Foreign 7,673 22 1.17 Other time 7,676 34 1.75 Total interest-bearing deposits 177,419 469 1.06 Federal funds purchased and securities sold under repurchase agreements 48,353 124 1.03 Commercial paper 11,852 30 1.01 Securities sold short 8,412 47 2.25 Other short-term borrowings 6,436 10 0.59 Long-term debt 37,269 364 3.91 Total interest-bearing liabilities excluding derivatives 289,741 1,044 1.45 Risk management derivatives (a) - 94 0.13 Total interest-bearing liabilities including derivatives 289,741 1,138 1.58 Noninterest-bearing deposits 46,603 Other liabilities 29,607 Stockholders' equity 32,737 Total liabilities and stockholders' equity $398,688 Interest income and rate earned - including derivatives $4,061 4.93 % Interest expense and equivalent rate paid - including derivatives 1,138 1.38 Net interest income and margin - including derivatives $2,923 3.55 % (a) The rates earned and the rates paid on risk management derivatives are based on off-balance sheet notional amounts. The fair value of these instruments is included in other assets and other liabilities. PAGE 18 WACHOVIA CORPORATION AND SUBSIDIARIES NET INTEREST INCOME SUMMARIES (Unaudited) FOURTH QUARTER 2003 Average Interest Rates Average Income/ Earned/ (In millions) Balances Expense Paid ASSETS Interest-bearing bank balances $2,569 7 1.17 % Federal funds sold and securities purchased under resale agreements 23,591 60 1.00 Trading account assets 20,038 213 4.24 Securities 94,584 1,184 5.00 Loans Commercial Commercial, financial and agricultural 55,439 593 4.25 Real estate - construction and other 5,789 52 3.53 Real estate - mortgage 15,555 166 4.23 Lease financing 7,084 185 10.45 Foreign 6,761 45 2.66 Total commercial 90,628 1,041 4.56 Consumer Real estate secured 51,380 718 5.58 Student loans 8,502 78 3.62 Installment loans 9,090 137 5.99 Total consumer 68,972 933 5.39 Total loans 159,600 1,974 4.92 Loans held for sale 10,627 109 4.10 Other earning assets 11,265 83 2.95 Total earning assets excluding derivatives 322,274 3,630 4.49 Risk management derivatives (a) - 386 0.47 Total earning assets including derivatives 322,274 4,016 4.96 Cash and due from banks 10,728 Other assets 55,985 Total assets $388,987 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing deposits Savings and NOW accounts 56,755 58 0.40 Money market accounts 63,202 141 0.89 Other consumer time 28,456 200 2.80 Foreign 10,648 31 1.13 Other time 7,520 33 1.77 Total interest-bearing deposits 166,581 463 1.10 Federal funds purchased and securities sold under repurchase agreements 55,378 133 0.95 Commercial paper 11,670 31 1.06 Securities sold short 7,970 50 2.48 Other short-term borrowings 6,551 9 0.53 Long-term debt 35,855 357 3.97 Total interest-bearing liabilities excluding derivatives 284,005 1,043 1.46 Risk management derivatives (a) - 31 0.04 Total interest-bearing liabilities including derivatives 284,005 1,074 1.50 Noninterest-bearing deposits 45,696 Other liabilities 27,145 Stockholders' equity 32,141 Total liabilities and stockholders' equity $388,987 Interest income and rate earned - including derivatives $4,016 4.96 % Interest expense and equivalent rate paid - including derivatives 1,074 1.32 Net interest income and margin - including derivatives $2,942 3.64 % (a) The rates earned and the rates paid on risk management derivatives are based on off-balance sheet notional amounts. The fair value of these instruments is included in other assets and other liabilities. PAGE 18 WACHOVIA CORPORATION AND SUBSIDIARIES NET INTEREST INCOME SUMMARIES (Unaudited) THIRD QUARTER 2003 Average Interest Rates Average Income/ Earned/ (In millions) Balances Expense Paid ASSETS Interest-bearing bank balances $4,342 14 1.27 % Federal funds sold and securities purchased under resale agreements 22,080 48 0.88 Trading account assets 18,941 197 4.15 Securities 78,436 962 4.90 Loans Commercial Commercial, financial and agricultural 55,596 588 4.19 Real estate - construction and other 5,574 48 3.47 Real estate - mortgage 16,075 174 4.31 Lease financing 6,911 183 10.61 Foreign 6,756 47 2.73 Total commercial 90,912 1,040 4.55 Consumer Real estate secured 49,438 707 5.70 Student loans 7,962 74 3.70 Installment loans 9,682 152 6.18 Total consumer 67,082 933 5.54 Total loans 157,994 1,973 4.97 Loans held for sale 10,244 111 4.34 Other earning assets 11,466 87 2.98 Total earning assets excluding derivatives 303,503 3,392 4.45 Risk management derivatives (a) - 384 0.50 Total earning assets including derivatives 303,503 3,776 4.95 Cash and due from banks 11,092 Other assets 62,299 Total assets $376,894 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing deposits Savings and NOW accounts 52,570 52 0.39 Money market accounts 58,576 126 0.85 Other consumer time 29,814 217 2.89 Foreign 7,581 22 1.17 Other time 7,099 33 1.80 Total interest-bearing deposits 155,640 450 1.15 Federal funds purchased and securities sold under repurchase agreements 46,359 114 0.98 Commercial paper 11,978 32 1.05 Securities sold short 8,850 57 2.58 Other short-term borrowings 7,136 15 0.87 Long-term debt 36,388 365 4.02 Total interest-bearing liabilities excluding derivatives 266,351 1,033 1.54 Risk management derivatives (a) - 26 0.04 Total interest-bearing liabilities including derivatives 266,351 1,059 1.58 Noninterest-bearing deposits 44,755 Other liabilities 33,803 Stockholders' equity 31,985 Total liabilities and stockholders' equity $376,894 Interest income and rate earned - including derivatives $3,776 4.95 % Interest expense and equivalent rate paid - including derivatives 1,059 1.38 Net interest income and margin - including derivatives $2,717 3.57 % (a) The rates earned and the rates paid on risk management derivatives are based on off-balance sheet notional amounts. The fair value of these instruments is included in other assets and other liabilities. PAGE 19 WACHOVIA CORPORATION AND SUBSIDIARIES NET INTEREST INCOME SUMMARIES (a) (Unaudited) NINE MONTHS ENDED SEPTEMBER 30, 2004 Average Interest Rates Average Income/ Earned/ (In millions) Balances Expense Paid ASSETS Interest-bearing bank balances $3,467 33 1.27 % Federal funds sold and securities purchased under resale agreements 25,013 219 1.17 Trading account assets 26,402 828 4.18 Securities 99,980 3,654 4.87 Loans Commercial Commercial, financial and agricultural 56,805 1,817 4.28 Real estate - construction and other 6,339 176 3.71 Real estate - mortgage 15,048 488 4.33 Lease financing 7,890 541 9.14 Foreign 7,043 129 2.44 Total commercial 93,125 3,151 4.52 Consumer Real estate secured 52,525 2,128 5.40 Student loans 9,666 265 3.66 Installment loans 8,493 363 5.70 Total consumer 70,684 2,756 5.20 Total loans 163,809 5,907 4.81 Loans held for sale 15,168 478 4.20 Other earning assets 11,241 262 3.12 Total earning assets excluding derivatives 345,080 11,381 4.40 Risk management derivatives (b) - 1,128 0.44 Total earning assets including derivatives 345,080 12,509 4.84 Cash and due from banks 11,123 Other assets 55,231 Total assets $411,434 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing deposits Savings and NOW accounts 69,594 241 0.46 Money market accounts 75,881 523 0.92 Other consumer time 26,881 545 2.71 Foreign 7,412 69 1.25 Other time 7,751 107 1.83 Total interest-bearing deposits 187,519 1,485 1.06 Federal funds purchased and securities sold under repurchase agreements 47,340 404 1.14 Commercial paper 12,099 105 1.16 Securities sold short 10,464 216 2.76 Other short-term borrowings 6,165 36 0.76 Long-term debt 38,359 1,146 3.99 Total interest-bearing liabilities excluding derivatives 301,946 3,392 1.50 Risk management derivatives (b) - 263 0.12 Total interest-bearing liabilities including derivatives 301,946 3,655 1.62 Noninterest-bearing deposits 49,508 Other liabilities 27,152 Stockholders' equity 32,828 Total liabilities and stockholders' equity $411,434 Interest income and rate earned - including derivatives $12,509 4.84 % Interest expense and equivalent rate paid - including derivatives 3,655 1.42 Net interest income and margin - including derivatives $8,854 3.42 % (a) Certain amounts presented in 2003 have been reclassified to conform to the presentation in 2004. (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 19 WACHOVIA CORPORATION AND SUBSIDIARIES NET INTEREST INCOME SUMMARIES (a) (Unaudited) NINE MONTHS ENDED SEPTEMBER 30, 2003 Average Interest Rates Average Income/ Earned/ (In millions) Balances Expense Paid ASSETS Interest-bearing bank balances $4,262 43 1.34 % Federal funds sold and securities purchased under resale agreements 14,485 112 1.04 Trading account assets 17,841 601 4.50 Securities 73,205 2,959 5.39 Loans Commercial Commercial, financial and agricultural 56,728 1,797 4.23 Real estate - construction and other 5,260 138 3.52 Real estate - mortgage 16,669 554 4.45 Lease financing 6,858 554 10.78 Foreign 6,616 144 2.91 Total commercial 92,131 3,187 4.62 Consumer Real estate secured 48,056 2,106 5.85 Student loans 7,723 227 3.93 Installment loans 9,988 493 6.59 Total consumer 65,767 2,826 5.74 Total loans 157,898 6,013 5.09 Loans held for sale 8,599 286 4.44 Other earning assets 5,829 160 3.66 Total earning assets excluding derivatives 282,119 10,174 4.81 Risk management derivatives (b) - 1,146 0.55 Total earning assets including derivatives 282,119 11,320 5.36 Cash and due from banks 10,942 Other assets 59,177 Total assets $352,238 LIABILITIES AND STOCKHOLDERS' EQUITY Interest-bearing deposits Savings and NOW accounts 51,890 202 0.52 Money market accounts 53,327 424 1.06 Other consumer time 31,262 723 3.09 Foreign 7,243 73 1.36 Other time 7,760 110 1.89 Total interest-bearing deposits 151,482 1,532 1.35 Federal funds purchased and securities sold under repurchase agreements 40,602 392 1.29 Commercial paper 5,689 41 0.96 Securities sold short 7,909 159 2.69 Other short-term borrowings 4,697 31 0.88 Long-term debt 36,953 1,119 4.04 Total interest-bearing liabilities excluding derivatives 247,332 3,274 1.77 Risk management derivatives (b) - 125 0.07 Total interest-bearing liabilities including derivatives 247,332 3,399 1.84 Noninterest-bearing deposits 42,941 Other liabilities 29,833 Stockholders' equity 32,132 Total liabilities and stockholders' equity $352,238 Interest income and rate earned - including derivatives $11,320 5.36 % Interest expense and equivalent rate paid - including derivatives 3,399 1.61 Net interest income and margin - including derivatives $7,921 3.75 % (a) Certain amounts presented in 2003 have been reclassified to conform to the presentation in 2004. (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 20 WACHOVIA CORPORATION AND SUBSIDIARIES RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES (Unaudited) 2004 (Dollars in millions, Third Second except per share data) * Quarter Quarter INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE Net income (GAAP) A $1,263 1,252 After tax change in accounting principle (GAAP) - - Income before change in accounting principle (GAAP) 1,263 1,252 After tax merger-related and restructuring expenses (GAAP) 55 47 Income before change in accounting principle, excluding merger-related and restructuring expenses B 1,318 1,299 After tax other intangible amortization (GAAP) 62 67 Income before change in accounting principle, excluding after tax merger-related and restructuring expenses, and other intangible amortization C $1,380 1,366 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS Net income available to common stockholders (GAAP) D $1,263 1,252 After tax merger-related and restructuring expenses (GAAP) 55 47 After tax change in accounting principle (GAAP) - - Net income available to common stockholders, excluding merger- related and restructuring expenses E 1,318 1,299 After tax other intangible amortization (GAAP) 62 67 Net income available to common stockholders, excluding after tax merger-related and restructuring expenses, and other intangible amortization F $1,380 1,366 RETURN ON AVERAGE COMMON STOCKHOLDERS' EQUITY Average common stockholders' equity (GAAP) G $33,246 32,496 Merger-related and restructuring expenses (GAAP) 116 69 Change in accounting principle - - Average common stockholders' equity, excluding merger- related and restructuring expenses, and change in accounting principle H 33,362 32,565 Average intangible assets (GAAP) I (12,473) (12,326) Average common stockholders' equity, excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle J $20,889 20,239 Return on average common stockholders' equity GAAP D/G 15.12 % 15.49 Excluding merger-related and restructuring expenses, and change in accounting principle E/H 15.72 16.04 Return on average tangible common stockholders' equity GAAP D/G+I 24.20 24.96 Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle F/J 26.28 % 27.15 RETURN ON AVERAGE ASSETS Average assets (GAAP) K $424,399 411,074 Average intangible assets (GAAP) (12,473) (12,326) Average tangible assets (GAAP) L 411,926 398,748 Average assets (GAAP) 424,399 411,074 Merger-related and restructuring expenses (GAAP) 117 69 Change in accounting principle - - Average assets, excluding merger- related and restructuring expenses, and change in accounting principle M 424,516 411,143 Average intangible assets (GAAP) (12,473) (12,326) Average tangible assets, excluding merger-related and restructuring expenses, and change in accounting principle N $412,043 398,817 Return on average assets GAAP A/K 1.18 % 1.22 Excluding merger-related and restructuring expenses B/M 1.24 1.27 Return on average tangible assets GAAP A/L 1.22 1.26 Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle C/N 1.33 % 1.38 PAGE 20 WACHOVIA CORPORATION AND SUBSIDIARIES RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES (Unaudited) 2004 2003 (Dollars in millions, First Fourth except per share data) * Quarter Quarter INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE Net income (GAAP) A $1,251 1,100 After tax change in accounting principle (GAAP) - - Income before change in accounting principle (GAAP) 1,251 1,100 After tax merger-related and restructuring expenses (GAAP) 48 75 Income before change in accounting principle, excluding merger-related and restructuring expenses B 1,299 1,175 After tax other intangible amortization (GAAP) 69 74 Income before change in accounting principle, excluding after tax merger-related and restructuring expenses, and other intangible amortization C $1,368 1,249 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS Net income available to common stockholders (GAAP) D $1,251 1,100 After tax merger-related and restructuring expenses (GAAP) 48 75 After tax change in accounting principle (GAAP) - - Net income available to common stockholders, excluding merger- related and restructuring expenses E 1,299 1,175 After tax other intangible amortization (GAAP) 69 74 Net income available to common stockholders, excluding after tax merger-related and restructuring expenses, and other intangible amortization F $1,368 1,249 RETURN ON AVERAGE COMMON STOCKHOLDERS' EQUITY Average common stockholders' equity (GAAP) G $32,737 32,141 Merger-related and restructuring expenses (GAAP) 20 199 Change in accounting principle - - Average common stockholders' equity, excluding merger- related and restructuring expenses, and change in accounting principle H 32,757 32,340 Average intangible assets (GAAP) I (12,351) (12,380) Average common stockholders' equity, excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle J $20,406 19,960 Return on average common stockholders' equity GAAP D/G 15.37 % 13.58 Excluding merger-related and restructuring expenses, and change in accounting principle E/H 15.95 14.41 Return on average tangible common stockholders' equity GAAP D/G+I 24.68 22.09 Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle F/J 26.97 % 24.83 RETURN ON AVERAGE ASSETS Average assets (GAAP) K $398,688 388,987 Average intangible assets (GAAP) (12,351) (12,380) Average tangible assets (GAAP) L 386,337 376,607 Average assets (GAAP) 398,688 388,987 Merger-related and restructuring expenses (GAAP) 20 199 Change in accounting principle - - Average assets, excluding merger- related and restructuring expenses, and change in accounting principle M 398,708 389,186 Average intangible assets (GAAP) (12,351) (12,380) Average tangible assets, excluding merger-related and restructuring expenses, and change in accounting principle N $386,357 376,806 Return on average assets GAAP A/K 1.26 % 1.12 Excluding merger-related and restructuring expenses B/M 1.31 1.20 Return on average tangible assets GAAP A/L 1.30 1.16 Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle C/N 1.42 % 1.32 PAGE 20 WACHOVIA CORPORATION AND SUBSIDIARIES RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES (Unaudited) 2003 (Dollars in millions, Third except per share data) * Quarter INCOME BEFORE CHANGE IN ACCOUNTING PRINCIPLE Net income (GAAP) A $1,105 After tax change in accounting principle (GAAP) (17) Income before change in accounting principle (GAAP) 1,088 After tax merger-related and restructuring expenses (GAAP) 83 Income before change in accounting principle, excluding merger-related and restructuring expenses B 1,171 After tax other intangible amortization (GAAP) 79 Income before change in accounting principle, excluding after tax merger-related and restructuring expenses, and other intangible amortization C $1,250 NET INCOME AVAILABLE TO COMMON STOCKHOLDERS Net income available to common stockholders (GAAP) D $1,105 After tax merger-related and restructuring expenses (GAAP) 83 After tax change in accounting principle (GAAP) (17) Net income available to common stockholders, excluding merger- related and restructuring expenses E 1,171 After tax other intangible amortization (GAAP) 79 Net income available to common stockholders, excluding after tax merger-related and restructuring expenses, and other intangible amortization F $1,250 RETURN ON AVERAGE COMMON STOCKHOLDERS' EQUITY Average common stockholders' equity (GAAP) G $31,985 Merger-related and restructuring expenses (GAAP) 138 Change in accounting principle (14) Average common stockholders' equity, excluding merger- related and restructuring expenses, and change in accounting principle H 32,109 Average intangible assets (GAAP) I (12,250) Average common stockholders' equity, excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle J $19,859 Return on average common stockholders' equity GAAP D/G 13.71 % Excluding merger-related and restructuring expenses, and change in accounting principle E/H 14.46 Return on average tangible common stockholders' equity GAAP D/G+I 22.22 Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle F/J 24.97 % RETURN ON AVERAGE ASSETS Average assets (GAAP) K $376,894 Average intangible assets (GAAP) (12,250) Average tangible assets (GAAP) L 364,644 Average assets (GAAP) 376,894 Merger-related and restructuring expenses (GAAP) 138 Change in accounting principle (14) Average assets, excluding merger- related and restructuring expenses, and change in accounting principle M 377,018 Average intangible assets (GAAP) (12,250) Average tangible assets, excluding merger-related and restructuring expenses, and change in accounting principle N $364,768 Return on average assets GAAP A/K 1.16 % Excluding merger-related and restructuring expenses B/M 1.23 Return on average tangible assets GAAP A/L 1.20 Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle C/N 1.36 % PAGE 21 WACHOVIA CORPORATION AND SUBSIDIARIES RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES (Unaudited) 2004 (Dollars in millions, Third Second except per share data) * Quarter Quarter OVERHEAD EFFICIENCY RATIOS Noninterest expense (GAAP) O $3,662 3,487 Merger-related and restructuring expenses (GAAP) (127) (102) Noninterest expense, excluding merger-related and restructuring expenses P 3,535 3,385 Other intangible amortization (GAAP) (99) (107) Noninterest expense, excluding merger-related and restructuring expenses, and other intangible amortization Q $3,436 3,278 Net interest income (GAAP) $2,965 2,838 Tax-equivalent adjustment 63 65 Net interest income (Tax-equivalent) $3,028 2,903 Fee and other income (GAAP) 2,592 2,599 Total R $5,620 5,502 Retail Brokerage Services, excluding insurance Noninterest expense (GAAP) S $863 908 Net interest income (GAAP) $139 118 Tax-equivalent adjustment - - Net interest income (Tax- equivalent) 139 118 Fee and other income (GAAP) 827 907 Total T $966 1,025 Overhead efficiency ratios GAAP O/R 65.15 % 63.40 Excluding merger-related and restructuring expenses P/R 62.90 61.54 Excluding merger-related and restructuring expenses, and brokerage P-S/R-T 57.41 55.34 Excluding merger-related and restructuring expenses, and other intangible amortization Q/R 61.14 59.60 Excluding merger-related and restructuring expenses, and other intangible amortization and brokerage Q-S/R-T 55.28 % 52.95 OPERATING LEVERAGE Operating leverage (GAAP) $(55) (11) After tax merger-related and restructuring expenses (GAAP) 25 3 Operating leverage, excluding merger-related and restructuring expenses (30) (8) After tax other intangible amortization (GAAP) (8) (5) Operating leverage, excluding merger-related and restructuring expenses, and other intangible amortization $(38) (13) DIVIDEND PAYOUT RATIOS ON COMMON SHARES Dividends paid per common share U $0.40 0.40 Diluted earnings per common share (GAAP) V $0.96 0.95 Merger-related and restructuring expenses (GAAP) 0.04 0.03 Other intangible amortization (GAAP) 0.05 0.05 Change in accounting principle (GAAP) - - Diluted earnings per common, excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle W $1.05 1.03 Dividend payout ratios GAAP U/V 41.67 % 42.11 Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle U/W 38.10 % 38.83 * The letters included in the columns are provided to show how the various ratios presented in the tables on pages 20 and 21 are calculated. For example, return on average assets on a GAAP basis is calculated by dividing income before change in accounting principle (GAAP) by average assets (GAAP) (i.e., A/K) and annualized where appropriate. PAGE 21 WACHOVIA CORPORATION AND SUBSIDIARIES RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES (Unaudited) 2004 2003 (Dollars in millions, First Fourth except per share data) * Quarter Quarter OVERHEAD EFFICIENCY RATIOS Noninterest expense (GAAP) O $3,656 3,766 Merger-related and restructuring expenses (GAAP) (99) (135) Noninterest expense, excluding merger-related and restructuring expenses P 3,557 3,631 Other intangible amortization (GAAP) (112) (120) Noninterest expense, excluding merger-related and restructuring expenses, and other intangible amortization Q $3,445 3,511 Net interest income (GAAP) $2,861 2,877 Tax-equivalent adjustment 62 65 Net interest income (Tax-equivalent) $2,923 2,942 Fee and other income (GAAP) 2,757 2,604 Total R $5,680 5,546 Retail Brokerage Services, excluding insurance Noninterest expense (GAAP) S $989 957 Net interest income (GAAP) $106 82 Tax-equivalent adjustment - 1 Net interest income (Tax- equivalent) 106 83 Fee and other income (GAAP) 1,031 1,008 Total T $1,137 1,091 Overhead efficiency ratios GAAP O/R 64.36 % 67.90 Excluding merger-related and restructuring expenses P/R 62.61 65.45 Excluding merger-related and restructuring expenses, and brokerage P-S/R-T 56.53 60.00 Excluding merger-related and restructuring expenses, and other intangible amortization Q/R 60.64 63.28 Excluding merger-related and restructuring expenses, and other intangible amortization and brokerage Q-S/R-T 54.06 % 57.30 OPERATING LEVERAGE Operating leverage (GAAP) $244 18 After tax merger-related and restructuring expenses (GAAP) (36) (12) Operating leverage, excluding merger-related and restructuring expenses 208 6 After tax other intangible amortization (GAAP) (8) (7) Operating leverage, excluding merger-related and restructuring expenses, and other intangible amortization $200 (1) DIVIDEND PAYOUT RATIOS ON COMMON SHARES Dividends paid per common share U $0.40 0.35 Diluted earnings per common share (GAAP) V $0.94 0.83 Merger-related and restructuring expenses (GAAP) 0.04 0.05 Other intangible amortization (GAAP) 0.05 0.06 Change in accounting principle (GAAP) - - Diluted earnings per common, excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle W $1.03 0.94 Dividend payout ratios GAAP U/V 42.55 % 42.17 Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle U/W 38.83 % 37.23 * The letters included in the columns are provided to show how the various ratios presented in the tables on pages 20 and 21 are calculated. For example, return on average assets on a GAAP basis is calculated by dividing income before change in accounting principle (GAAP) by average assets (GAAP) (i.e., A/K) and annualized where appropriate. PAGE 21 WACHOVIA CORPORATION AND SUBSIDIARIES RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES (Unaudited) 2003 (Dollars in millions, Third except per share data) * Quarter OVERHEAD EFFICIENCY RATIOS Noninterest expense (GAAP) O $3,570 Merger-related and restructuring expenses (GAAP) (148) Noninterest expense, excluding merger-related and restructuring expenses P 3,422 Other intangible amortization (GAAP) (127) Noninterest expense, excluding merger-related and restructuring expenses, and other intangible amortization Q $3,295 Net interest income (GAAP) $2,653 Tax-equivalent adjustment 64 Net interest income (Tax-equivalent) $2,717 Fee and other income (GAAP) 2,616 Total R $5,333 Retail Brokerage Services, excluding insurance Noninterest expense (GAAP) S $941 Net interest income (GAAP) $69 Tax-equivalent adjustment - Net interest income (Tax- equivalent) 69 Fee and other income (GAAP) 1,001 Total T $1,070 Overhead efficiency ratios GAAP O/R 66.95 % Excluding merger-related and restructuring expenses P/R 64.18 Excluding merger-related and restructuring expenses, and brokerage P-S/R-T 58.23 Excluding merger-related and restructuring expenses, and other intangible amortization Q/R 61.79 Excluding merger-related and restructuring expenses, and other intangible amortization and brokerage Q-S/R-T 55.24 % OPERATING LEVERAGE Operating leverage (GAAP) $2 After tax merger-related and restructuring expenses (GAAP) 52 Operating leverage, excluding merger-related and restructuring expenses 54 After tax other intangible amortization (GAAP) (4) Operating leverage, excluding merger-related and restructuring expenses, and other intangible amortization $50 DIVIDEND PAYOUT RATIOS ON COMMON SHARES Dividends paid per common share U $0.35 Diluted earnings per common share (GAAP) V $0.83 Merger-related and restructuring expenses (GAAP) 0.06 Other intangible amortization (GAAP) 0.05 Change in accounting principle (GAAP) (0.01) Diluted earnings per common, excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle W $0.93 Dividend payout ratios GAAP U/V 42.17 % Excluding merger-related and restructuring expenses, other intangible amortization and change in accounting principle U/W 37.63 % * The letters included in the columns are provided to show how the various ratios presented in the tables on pages 20 and 21 are calculated. For example, return on average assets on a GAAP basis is calculated by dividing income before change in accounting principle (GAAP) by average assets (GAAP) (i.e., A/K) and annualized where appropriate.
PRNewswire-FirstCall -- Oct. 15END SECOND AND FINAL ADD
Wachovia Corporation
© 2004 PR Newswire
