This summary is based on the fourth quarter fiscal 2007 earnings call presented by Wachovia Corp on January 22, 2008.

Management

- Director of IR: Alice Lehman
- Chairman, President and CEO: Ken Thompson
- EVP and CFO: Tom Wurtz
- Senior EVP and Chief Risk Officer: Don Truslow

Key Investor Issues

- Net Income was down from $2.3 billion in 2006 to $51 million.
- Non-performing assets were up $2.2 billion, with nearly all of the growth coming in the form of non-performing loans.
- Tier 1 and total capital ratios increased from the third quarter of 2007 following the issuance of $2.3 billion of preferred stock and $838 million of trust preferred.

Full Year Highlights:

- Net income was $6.31 billion, down 19% from $7.79 billion in 2006.
- Earnings per share were down 30% from 2006 to $3.26.

Fourth Quarter Highlights.

The firm reported net income of $51 million, or 3 cents per share, down from $2.30 billion, or $1.20 per share, in 2006 reflecting the effect of continued disruption in the capital markets

- The firm generated revenue of $7.2 billion on higher loan and deposit balances driven primarily by organic growth, while fee and other income declined due to net market disruption-related valuation losses of $1.7 billion and significantly reduced fee income related to the disruption in the capital markets.
- Capital market disruptions also resulted in net valuation losses of $1.7 billion as well as a provision for credit losses of $1.5 billion, which exceeded net charge-offs by $1.0 billion.
- The firm reduced its'' CMBS mark-to-market exposure by over $6 billion, while recording CMBS marks costing far less than, investors expectations.
- The firm raised $2.3 billion of straight preferred equity in December and $800 million in trust preferred in September to improve its'' capital levels over third quarter levels.

Expectations 2008 are that charge-offs will exceed the historical peak, but the Pick-a-Pay portfolio will generate very meaningful bottom-line profits in 2008.

- Capital levels were higher in spite of the reserve builds done in the fourth quarter
- The 2008 business plan will generate cash earnings that will cover the dividend payments, continue to build necessary credit reserves, improve the capital ratios and support growth in the business lines.
- The firm had approximately 90cents per share of writedown and over provisioning.

Net interest income is demonstrating solid performance in spite of rising NPA levels.

- On the fee income side, there was solid growth in the major line items, service charges, fiduciary and asset management fees, commissions and the number of lines and the Corporate Investment Bank performed very well also.
- Average loans were up 9% with strength in commercial lending and auto lending as average deposits grew 8% particularly in money market accounts and certificates of deposit.
- Strong momentum continued in net new checking accounts, which increased 935,000 in 2007, including 100,000 generated in the former World Savings branch network.

Tier 1 and total capital ratios increased from the third quarter of 2007 following the issuance of $2.3 billion of preferred stock and $838 million of trust preferred.

- Income tax benefit of $285 million principally reflects a reduction in the full year tax rate given a lower than expected level of earnings.
- Customer loyalty scores maintain near record 53%; organic customer acquisition grew 15% annualized.
- In 2008, decent loan growth in the course of the year and better spreads as well are expected.

Segment Performance:

- The General Bank''s earnings of $1.2 billion, were down $271 million, driven by a small decrease in revenue, a higher provision for credit losses and higher noninterest expense.
- Average loan growth of 6 %, reflected double digit growth in wholesale businesses and small business, and 4% growth in consumer loans.
- Growth in deposits was led by consumer certificates of deposit,up $15.2 billion, and money market deposits, up $3.0 billion from year-end 2006.
- Net new retail checking accounts increased by 90,000 in the fourth quarter of 2007 compared with an increase of 87,000 in the fourth quarter of 2006.
- For the full year, net new retail checking accounts increased 935,000 in 2007 compared with an increase of 554,000 in 2006

- In Wealth Management modest earnings growth to $85 million followed 5% revenue growth, offset by 3% growth in expense and higher provision for credit losses.
- Strong fiduciary and asset management fees related to a pricing initiative implemented in the third quarter and other growth, all of which contributed to 8% growth in fee and other income.
- A 2% growth in net interest income on 10 % average loan growth, offset the spread compression.

Of the $1.7 billion total writedowns, $1.6 billion is in the Corporate Investment Bank, while $17 million is in the Capital Management Group on further writedowns to commercial paper assets.