Exhibit 99.2

Performance Report

Second Quarter

2003

Table of Contents

Second Quarter Earnings Review			2
Consolidated Financial Information			4
	Key Financial Data		5
	Consolidated Income Statement		7
	Consolidated Balance Sheet		8
	Net Interest Margin — QTD		9
	Net Interest Margin — YTD		10
	Earnings Per Share (EPS) — QTD		11
	Earnings Per Share (EPS) — YTD		12
Analysis of Consolidated Income Statement			13
	Net Interest Income		14
	Noninterest Income		15
	Noninterest Expense		17
Loan Portfolio, Credit Quality & Capital			18
	Average Loans		19
	Credit Cards — Domestic		20
	Credit Quality		21
	Nonperforming Assets		22
	Rollforward Of Reserve For Credit Losses		23
	Summary Of Credit-Related Costs		24
	Net Charge-Offs		24
	Capital and Share Data		25
Review of Business Line Results			26
	Earnings Summary		28
	Personal Financial Services		29
	Regional Commercial Financial Services and Investment Management		30
	National Commercial Financial Services		32
	International Banking		33
	Capital Markets		33
	Line of Business Highlights		34
		Personal Financial Services	34
		Commercial Financial Services	38
	Argentina		40
	Brazil		41
	Principal Investing Portfolio		42

1

SECOND QUARTER EARNINGS REVIEW

Below is a summary of net income by business unit for 2Q’03 and 1Q’03. This presentation of results reflects a reorganization that was announced during the second quarter. The major changes included moving Quick & Reilly retail brokerage from Investment Management into Consumer Banking and linking Regional Commercial Financial Services with Investment Management. The prior period has been restated and is presented on the same basis as the current quarter. Detailed information regarding line of business results can be found in the section beginning on page 26.

				2003
(after-tax amounts in millions)				2Q			1Q
	Personal Financial Services (see pages 29 & 34-37)
			Consumer Banking	$	190		$	156
			Small Business		34			32
			Credit Card		34			33
	Total Personal Financial Services			$	258		$	221
	Regional CFS & Investment Management
			Regional Commercial Financial Svcs (see pages 30-31 & 38-39)	$	67		$	62
			Investment Management (see pages 30-31)		38			33
	Total Regional CFS & Investment Management			$	105		$	95
	National Commercial Financial Services (see pages 32 & 38-39)			$	199		$	182
Total Core Businesses				$	562		$	498
	International (see note 1 below)
		Gain from Sale of Investment in Argentine Pension Company		$	41			—
		Argentine Charges (see note 2 below)			(79	)		—
		Remaining international			38			29
	Total International			$	0		$	29
	Capital Markets (Principal Investing, Specialist/Execution and Clearing)			$	(43	)	$	(31	)
	Discontinued Businesses
			Gain from Sale of InterPay	$	57			—
			Robertson Stephens/Asia		(4	)		(10	)
	Total Discontinued Businesses			$	53		$	(10	)
	Other (see note 3 below)			$	52			81
Net Income				$	624		$	567

1)	Includes Argentina, Brazil and other smaller international operations. Additional information about Argentina and Brazil can be found on pages 40-41.
2)	Includes charge for the establishment of a reserve related to the estimated impact of redollarization on applicable deposits ($100 million pre-tax; $65 million after-tax). This action could also mitigate the future impact of costs currently being incurred by the ongoing court-ordered settlements with individual depositors. Also includes charges for securities writedowns ($15 million pre-tax; $10 million after-tax) and further streamlining of operations ($6 million pre-tax; $4 million after-tax).
3)	Includes Treasury (including securities gains), transactions not allocated to the principal business lines and the residual impact of methodology allocations. The decline from 1Q’03 is mainly due to higher credit-related costs, including costs related to credit default swaps, and lower net interest income.

2

SECOND QUARTER EARNINGS REVIEW

Line of Business Rollforward (after-tax amounts in millions)
Description			Amount			EPS
First Quarter 2003			$	567		$	.54
Core Business Improvement (consumer, investment management, commercial)
		Excluding incremental marketing expense for a major brand campaign		79			.07
		Incremental marketing expense		(15	)		(.01	)
Core Business Improvement				64			.06
Impact of other second quarter actions:
	Gain from previously announced sale of InterPay			57			.05
	Net Argentine actions			(38	)		(.04	)
Other, net*				(26	)		(.02	)
Second Quarter 2003			$	624		$	.59

* The decline in other, net is mainly due to higher credit-related costs, including costs related to credit default swaps, lower earnings from the principal investing, specialist and clearing businesses, and lower net interest income. This was partially offset by higher earnings from Treasury and international.

Summary of Second Quarter Actions (after-tax amounts in millions)
Description		Amount			EPS
Gain from previously announced sale of InterPay		$	57		$	.05
Argentine Actions:
	Charge to establish a reserve for deposits (1)		(65	)		(.07	)
	Charges for securities writedowns and streamlining of operations		(14	)		(.01	)
	Gain from sale of investment in pension company		41			.04
Total net impact of Argentine actions			(38	)		(.04	)
Incremental marketing expenses related to a brand campaign			(15	)		(.01	)
Net Impact of Second Quarter Actions		$	4		$	.00

(1) Charge for the establishment of a reserve related to the estimated impact of redollarization actions on applicable deposits. This action could also mitigate the future impact of costs currently being incurred by the ongoing court-ordered settlements with individual depositors.

Note: In the GAAP income statement, the gain from the previously announced sale of InterPay is required to be presented as a discontinued operation.

3

CONSOLIDATED
FINANCIAL
INFORMATION

4

SECOND QUARTER HIGHLIGHTS

Key Financial Data
		2003						Change			2002			Change
Dollars in millions, except per share data		2Q			1Q						2Q
Net Income:
Earnings		$	624		$	567			10	%	$	(386	)		nm	%
Earnings Per Share			.59			.54			9			(.37	)		nm
Return on Assets			1.27	%		1.18	%		9	bp		nm	%		nm	bp
Return on Common Equity			14.47			13.67			80			nm			nm
Other Data:
Revenue		$	2,777		$	2,760			1	%	$	2,652			5	%
Expenses			1,594			1,573			1			1,588			0
Net Interest Margin			3.76	%		3.89	%		(13	)bp		4.12	%		(36	)bp
Noninterest Income/Revenue			42			41			100			38			400
Nonperforming Assets (1)		$	2,603		$	2,973			(12	)%	$	3,891			(33	)%
Total Credit-Related Charges (2)			315			310			2			1,250			(75	)
Net Charge-offs (3)			518			656			(21	)		980			(47	)
Reserve/Loans			2.58	%		2.75	%		(17	)bp		3.33	%		(75	)bp
	bp = basis points

(1)	Nonperforming assets for Argentina were $1.3 billion in 2Q’03, $1.5 billion in 1Q’03 and $2.0 billion in 2Q’02. Net chargeoffs for Argentina were $78 million in 2Q’03, $196 million in 1Q’03 and $30 million in 2Q’02.
(2)	Total credit-related charges included a provision for credit losses of $285 million in 2Q’03, $280 million in 1Q’03, and $1,250 million in 2Q’02. The remaining amounts in 2Q’03 and 1Q’03, which are related to airline credits, were charged against noninterest income.
(3)	Total net chargeoffs (including Argentina) reflected net loan losses of $488 million in 2Q’03, $626 million in 1Q’03, and $980 million in 2Q’02. The remaining net chargeoff amounts in 2Q’03 and 1Q’03 were charged against noninterest income.

Earnings Per Share - Line Item Rollforward (after-tax amounts in millions)
Description		EPS
First Quarter 2003		$	.54
Changes in account categories (excluding second quarter actions shown below):
	Higher noninterest income (includes higher banking, brokerage, & investment management fees) revenue		.06
	Lower net interest revenue (narrower spreads offset by higher volumes of assets)		(.02	)
	Decline in operating expenses		.01
Subtotal		$	.59
Impact of Second quarter actions:
	Gain from previously announced sale of InterPay		.05
	Net Argentine actions		(.04	)
	Incremental marketing expenses related to a major brand campaign		(.01	)
Net impact of second quarter actions			.00
Second Quarter 2003		$	.59

5

Income Statement
	2003						2002
Dollars in millions	2Q			1Q			4Q			3Q			2Q
Net Interest Income (FTE)	$	1,598		$	1,622		$	1,563		$	1,531		$	1,656
Noninterest Income		1,179			1,138			1,311			1,326			996
Revenue (FTE)		2,777			2,760			2,874			2,857			2,652
Noninterest Expense		1,594			1,573			1,665			1,593			1,588
Income from Continuing Operations before Provision and Income Taxes		1,183			1,187			1,209			1,264			1,064
Provision for Credit Losses		285			280			750			352			1,250
Income Taxes and tax-equivalent adj. from Continuing Operations		327			330			162			315			(80	)
Net Income (Loss) from Continuing Operations		571			577			297			597			(106	)
Net Income (Loss) from Discontinued Operations (net of tax)		53			(10	)		(36	)		(18	)		(280	)
Net Income (Loss)	$	624		$	567		$	261		$	579		$	(386	)
Other Financial Data
RATIOS and COMMON SHARE DATA
Net Income:
Return on Assets		1.27	%		1.18	%		.55	%		1.23	%		nm	%
Return on Common Equity		14.47			13.67			6.12			13.80			nm
Efficiency Ratio		57.4			57.0			57.9			55.8			59.9
Diluted Earnings (Loss) Per Share	$	.59		$	.54		$	.24		$	.55		$	(.37	)
Cash Dividends Declared		.35			.35			.35			.35			.35
Book Value		16.32			16.04			15.78			15.84			15.79
Balance Sheet Data:
Total Assets (period-end)	$	197,128		$	199,308		$	190,453		$	187,188		$	191,040
Loans and Leases (period-end)		123,860			124,015			120,380			117,053			116,201

Note: Components of discontinued operations for 2Q’03 were the InterPay gain ($57 million after-tax), Robertson Stephens ($3 million after-tax loss) and Asia ($1 million after-tax loss).

6

Consolidated Income Statements
			Three Months Ended								Six Months Ended
			June 30,		March 31,			June 30,			June 30,		June 30,
Dollars in millions, except per share data			2003		2003			2002			2003		2002
Net interest income (FTE)			$	1,598	$	1,622		$	1,656		$	3,221	$	3,388
Noninterest income:
	Investment services revenue			379		354			404			733		809
	Banking fees and commissions			391		378			383			768		766
	Capital markets-related revenue			18		111			(134	)		129		132
	Credit card revenue			155		156			155			311		327
	Other			236		139			188			376		365
		Noninterest income		1,179		1,138			996			2,317		2,399
Revenue				2,777		2,760			2,652			5,538		5,787
Noninterest expense:
	Employee compensation and benefits			822		826			832			1,647		1,638
	Occupancy			129		129			126			258		257
	Equipment			113		119			121			232		243
	Intangible asset amortization			19		20			22			39		44
	Merger and Restructuring costs			—		—			9			—		14
	Other			511		479			478			992		949
		Noninterest expense		1,594		1,573			1,588			3,168		3,145
Income from continuing operations before provision and income taxes				1,183		1,187			1,064			2,370		2,642
Provision for credit losses				285		280			1,250			565		1,658
Income taxes and tax-equivalent adjustment from continuing operations				327		330			(80	)		657		354
Net income (loss) from continuing operations			$	571	$	577		$	(106	)	$	1,148	$	630
	Net income (loss) from discontinued operations (net of tax)			53		(10	)		(280	)		43		(281	)
Net income (loss)			$	624	$	567		$	(386	)	$	1,191	$	349
Diluted earnings (loss) per share — continuing operations			$	.54	$	.55		$	(.11	)	$	1.09	$	.59
Diluted earnings (loss) per share — net income				.59		.54			(.37	)		1.13		.32

7

Consolidated Balance Sheets - Period End
	June 30,			March 31,			June 30,
Dollars in millions	2003			2003			2002
ASSETS:
Cash and equivalents	$	13,083		$	12,434		$	14,173
Securities		34,914			36,109			29,828
Trading assets		4,607			4,043			3,853
Loans and leases		123,860			124,015			116,201
Reserve for credit losses		(3,198	)		(3,406	)		(3,867	)
Due from brokers/dealers		4,661			6,143			4,163
Other assets		19,201			19,970			26,689
Total assets	$	197,128		$	199,308		$	191,040
LIABILITIES:
Deposits		130,241			129,575			121,114
Short-term borrowings		16,109			15,948			11,715
Due to brokers/dealers		4,576			6,048			4,067
Long-term debt		17,815			19,551			22,654
Other liabilities		10,949			11,054			14,674
Total liabilities		179,690			182,176			174,224
STOCKHOLDERS’ EQUITY:
Preferred stock		271			271			271
Common stock		17,167			16,861			16,545
Total stockholders’ equity		17,438			17,132			16,816
Total liabilities and stockholders’ equity	$	197,128		$	199,308		$	191,040

8

Net Interest Margin and Interest-Rate Spread: Quarter
Average for Three Months Ended
		June 30, 2003						March 31, 2003						June 30, 2002
FTE Basis
Dollars in millions		Balance			Rate			Balance			Rate			Balance			Rate
ASSETS:
Securities		$	35,073			3.81	%	$	32,936			4.30	%	$	29,416			5.51	%
Loans and leases			123,272			6.08			122,750			6.14			119,539			7.23
Due from brokers/dealers			5,581			1.40			4,767			1.00			3,860			1.47
Other earning assets			6,433			6.98			8,483			6.14			7,916			5.62
	Total interest-earning assets		170,359			5.49	%		168,936			5.63	%		160,731			6.70	%
Reserve for credit losses			(3,397	)					(3,817	)					(3,687	)
Other assets			29,394						29,905						32,836
Total assets		$	196,356					$	195,024					$	189,880
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deposits:
	Savings — Domestic	$	70,496			1.03	%	$	66,002			1.12	%	$	62,183			1.33	%
	Time — Domestic		15,425			2.20			16,448			2.35			20,542			3.19
	International		10,556			3.73			9,443			3.93			9,593			10.75
	Total interest-bearing deposits		96,477			1.52			91,893			1.63			92,318			2.72
Short-term borrowings			16,174			2.55			14,152			2.48			13,206			3.05
Due to brokers/dealers			5,474			1.21			4,892			0.83			4,047			1.19
Long-term debt			19,148			5.27			20,463			5.24			23,433			5.00
	Total interest-bearing liabilities	$	137,273			2.15	%	$	131,400			2.25	%	$	133,004			3.11	%
	Net interest spread					3.34	%					3.38	%					3.59	%
Demand deposits and other noninterest- bearing time deposits		$	31,366					$	35,993					$	27,554
Other liabilities			10,279						10,665						11,497
Total liabilities			178,918						178,058						172,055
Preferred Stock			271						271						271
Common Stock			17,167						16,695						17,554
Stockholders’ equity			17,438						16,966						17,825
Total liabilities and stockholders’ equity		$	196,356					$	195,024					$	189,880
Net interest margin						3.76	%					3.89	%					4.12	%

9

Net Interest Margin and Interest-Rate Spread: Year-to-Date
Average for Six Months Ended		June 30, 2003						June 30, 2002
FTE Basis
Dollars in millions		Balance			Rate			Balance			Rate
ASSETS:
Securities		$	34,010			4.04	%	$	28,356			5.52	%
Loans and leases			123,013			6.11			122,251			7.14
Due from brokers/dealers			5,177			1.22			3,913			1.45
Other earning assets			7,452			6.51			9,132			5.19
	Total interest-earning assets		169,652			5.56	%		163,652			6.61	%
Reserve for credit losses			(3,606	)					(3,705	)
Other assets			29,648						33,289
Total assets		$	195,694					$	193,236
LIABILITIES AND STOCKHOLDERS’ EQUITY:
Deposits:
	Savings — Domestic	$	68,261			1.07	%	$	61,411			1.34	%
	Time — Domestic		15,934			2.28			21,136			3.37
	International		10,003			3.83			10,590			7.39
	Total interest-bearing deposits		94,198			1.57			93,137			2.49
Short-term borrowings			15,168			2.51			14,535			3.39
Due to brokers/dealers			5,185			1.03			3,976			1.20
Long-term debt			19,802			5.26			24,183			4.88
	Total interest-bearing liabilities	$	134,353			2.20	%	$	135,831			2.97	%
	Net interest spread					3.36	%					3.64	%
Demand deposits and other noninterest-bearing time deposits		$	33,667					$	27,739
Other liabilities			10,471						11,868
Total liabilities			178,491						175,438
Preferred Stock			271						271
Common Stock			16,932						17,527
Stockholders’ equity			17,203						17,798
Total liabilities and stockholders’ equity		$	195,694					$	193,236
Net interest margin						3.83	%					4.15	%

10

EARNINGS PER SHARE (EPS)

Computation of equivalent shares and earnings per common share
	BASIC
	Three Months Ended
Dollars in millions, except per share data	06/30/03			03/31/03			06/30/02
Earnings per share:
Net income (loss) from continuing operations	$	571		$	577		$	(106	)
Less: Preferred stock dividends		(5	)		(5	)		(5	)
Adjusted net income (loss) from continuing operations		566			572			(111	)
Net income (loss) from discontinued operations		53			(10	)		(280	)
Adjusted net income (loss)	$	619		$	562		$	(391	)
Weighted average shares outstanding (in millions)		1,047.5			1,046.8			1,045.5
Earnings (loss) per share — continuing operations	$	.54		$	.55		$	(.11	)
Earnings (loss) per share — net income		.59			.54			(.37	)

		DILUTED
		Three Months Ended
		06/30/03			03/31/03			06/30/02
Equivalent shares (in millions):
Average shares outstanding			1,047.5			1,046.8			1,045.5
Additional shares due to:
	Stock options and awards		3.3			1.6			—	(a)
Total equivalent shares			1,050.8			1,048.4			1,045.5
Earnings per share:
Net income (loss) from continuing operations		$	571		$	577		$	(106	)
Less: Preferred stock dividends			(5	)		(5	)		(5	)
Adjusted net income (loss) from continuing operations		$	566		$	572		$	(111	)
Net income (loss) from discontinued operations			53			(10	)		(280	)
Adjusted net income (loss)		$	619		$	562		$	(391	)
Total equivalent shares (in millions)			1,050.8			1,048.4			1,045.5
Earnings (loss) per share — continuing operations		$	.54		$	.55		$	(.11	)
Earnings (loss) per share — net income			.59			.54			(.37	)

(a)  Total average diluted shares outstanding in 2Q’02 are 1,051,105,474. Of this total, options to purchase common stock at June 30, 2002 equivalent to 5,654,827 shares were not included in the second quarter 2002 computation of diluted earnings per share because the impact of such options would have been antidilutive.

11

YTD — EARNINGS PER SHARE (EPS)

Computation of equivalent shares and earnings per common share
	BASIC
	Six Months Ended
Dollars in millions, except per share data	06/30/03			06/30/02
Earnings per share:
Net income from continuing operations	$	1,148		$	630
Less: Preferred stock dividends		(9	)		(9	)
Adjusted net income from continuing operations	$	1,139		$	621
Net income (loss) from discontinued operations		43			(281	)
Adjusted net income	$	1,182		$	340
Weighted average shares outstanding (in millions)		1,047.1			1,044.7
Earnings per share — continuing operations	$	1.09		$	.59
Earning per share — net income		1.13			.32

	DILUTED
	Six Months Ended
	06/30/03			06/30/02
Equivalent shares (in millions):
Average shares outstanding		1,047.1			1,044.7
Additional shares due to:
Stock options and awards		2.5			5.6
Total equivalent shares		1,049.6			1,050.3
Earnings per share:
Net income from continuing operations	$	1,148		$	630
Less: Preferred stock dividends		(9	)		(9	)
Adjusted net income from continuing operations	$	1,139		$	621
Net income (loss) from discontinued operations		43			(281	)
Adjusted net income	$	1,182		$	340
Total equivalent shares (in millions)		1,049.6			1,050.3
Earnings per share — continuing operations	$	1.09		$	.59
Earning per share — net income		1.13			.32

12

ANALYSIS OF
CONSOLIDATED
INCOME
STATEMENT

13

Net Interest Income
	2003						2002
Dollars in millions	2Q			1Q			4Q			3Q			2Q
Interest income	$	2,322		$	2,343		$	2,352		$	2,390		$	2,673
Tax-equivalent adjustment		13			12			13			14			14
Interest expense		737			733			802			873			1,031
Net interest income	$	1,598		$	1,622		$	1,563		$	1,531		$	1,656
Net Interest Margin		3.76	%		3.89	%		3.90	%		3.86	%		4.12	%

Net interest income declined $24 million from the first quarter as the impact of narrower spreads was partially offset by a higher volume of earning assets and one more day in the earnings period. During the quarter, interest rates continued to fall and the yield curve continued to flatten. As a result, fixed rate assets that matured and, in the case of mortgage-related assets, that prepaid were replaced at lower yields. This situation was also the main reason for the 13 basis point decline in net interest margin. Partially offsetting the impact of narrower spreads on net interest income was a $1.4 billion increase in average earning assets. Higher levels of home equity loans, residential mortgages and securities were partially offset by a decline in commercial loans and money market assets. Towards the end of the second quarter, FleetBoston restructured its swap and securities portfolios to move the overall risk position from a fairly neutral to an asset sensitive position.

14

Noninterest Income
		2003						2002
Dollars in millions		2Q			1Q			4Q			3Q			2Q
Investment Services Revenue		$	379		$	354		$	371		$	379		$	404
Banking Fees and Commissions			391			378			382			386			383
Capital Markets-Related Revenue (2)(3)			133			111			169			211			(134	)
Credit Card Revenue			155			156			263			195			155
Other Income:
	Mortgage Originations		20			12			13			13			19
	Tax Processing		18			10			4			10			11
	All Other (1)(3)		164			147			159			150			158
Subtotal			1,260			1,168			1,361			1,344			996
Gain from Sale of Investment in Argentine Pension Company (1)			64			—			—			—			—
Argentine Charges (2)			(115	)		—			—			—			—
Credit-related Charges (3)			(30	)		(30	)		(50	)		(18	)		—
Total Noninterest Income		$	1,179		$	1,138		$	1,311		$	1,326		$	996

The following items have been broken out and shown as separate line items for the purpose of the above presentation:

(1)	A pre-tax gain of $64 million from the sale of an investment in an Argentine pension company which was recorded to other income in 2Q’03.
(2)	Total Argentine pre-tax charges of $115 million recorded to capital markets-related revenue in 2Q’03 including a $100 million charge for the estimated impact of ongoing court-ordered deposit redollarizations in Argentina and a $15 million charge for Argentine securities writedowns.
(3)	Credit-related charges related to airlines of $30 million in 2Q’03, $30 million in 1Q’03, and $18 million in 3Q’02 were recorded to Other Income. A non-airline credit-related charge of $50 million in 4Q’02 was recorded to Capital Markets Revenue.

Excluding the items described in the footnotes above, noninterest income increased $92 million from the first quarter. This was mainly due to improvements in virtually all categories of noninterest income reflecting growth in core businesses. Further details are provided on the next page. Credit card revenue was down $1 million from the first quarter; however, excluding gains from portfolio sales, credit card revenue registered a $16 million increase.

15

Capital Markets-Related Revenue
	2003						2002
Dollars in millions	2Q			1Q			4Q			3Q			2Q
Market-Making	$	23		$	35		$	60		$	80		$	62
Foreign Exchange (1)		23			(26	)		(42	)		43			(23	)
Syndication/Agency Fees		42			33			26			32			39
Underwriting and Advisory Fees		18			18			11			15			14
Trading Profits and Commissions (2)		41			70			52			58			28
Securities Gains (Losses) (3)		51			34			148			51			(208	)
Private Equity Revenue		(65	)		(53	)		(86	)		(68	)		(46	)
Total Capital Markets-Related Revenue	$	133		$	111		$	169		$	211		$	(134	)

(1)	Excludes $100 million charge in 2Q’03 for establishing a reserve related to the estimated impact of redollarization actions on applicable deposits. This action should also mitigate the future impact of costs currently being incurred by the ongoing court-ordered settlements with individual depositors.
(2)	Excludes a $50 million credit-related charge recorded to trading profits and commissions in 4Q’02.
(3)	Excludes a $15 million charge for Argentine securities writedowns in 2Q’03.

Capital markets revenue increased by $22 million from the prior quarter. This reflected a $49 million improvement in foreign exchange profits related to Argentina due to first quarter losses from judicial decrees that ordered redollarization of certain deposits. In addition, both syndication fees and securities gains increased from last quarter. These improvements were partially offset by a $29 million decline in trading account profits due to an increase in hedging costs related to a greater use of credit default swaps, cross-currency swap transactions (net income neutral with an offset recorded in foreign exchange profits), and lower trading profits in Brazil. Market-making revenue declined $12 million due to continued unfavorable market conditions for the specialist business.

Investment Services Revenue
	2003				2002
Dollars in millions	2Q		1Q		4Q		3Q		2Q
Investment Management Revenue	$	259	$	249	$	256	$	260	$	284
Brokerage Fees and Commissions		120		105		115		119		120
Total Investment Services Revenue	$	379	$	354	$	371	$	379	$	404

The $10 million increase in investment management revenue was mainly due to improved stock market conditions during the quarter, which favorably affected asset management fees. Domestic assets under management were $148 billion at June 30, 2003, up $9 billion from March 31. Brokerage fees and commissions increased $15 million due to a higher volume of business at Quick & Reilly as stock market activity picked up during the second quarter.

Banking Fees and Commissions
	2003				2002
Dollars in millions	2Q		1Q		4Q		3Q		2Q
Cash Management Fees	$	114	$	115	$	108	$	118	$	109
Deposit Account Charges		107		102		103		101		104
Electronic Banking Fees		71		63		69		69		68
Other		99		98		102		98		102
Total Banking Fees & Commissions	$	391	$	378	$	382	$	386	$	383

Banking fees and commissions improved $13 million from the first quarter due to increases in deposit and electronic banking fees reflecting continued growth in deposit levels and seasonal factors.

16

NONINTEREST EXPENSE

Noninterest Expense
	2003						2002
Dollars in millions	2Q			1Q			4Q			3Q			2Q
Employee Compensation and Benefits	$	822		$	826		$	774		$	838		$	832
Occupancy		129			129			121			125			126
Equipment		113			119			117			117			121
Intangible Asset Amortization		19			20			28			21			22
Merger and Restructuring Charges		—			—			83			4			9
Other		511			479			542			488			478
Total Noninterest Expense	$	1,594		$	1,573		$	1,665		$	1,593		$	1,588
FTE Employees		48,319			49,567			50,266			50,722			52,408
Efficiency Ratio		57.4	%		57.0	%		57.9	%		55.8	%		59.9	%

Noninterest Expense Rollforward (amounts in millions)
Description	Amount
First Quarter 2003	$	1,573
Incremental marketing expenses related to a major brand campaign		24
2Q’03 charge for further streamlining of Argentine operations		6
Subtotal	$	1,603
Other, net		(9	)
Second Quarter 2003	$	1,594

Noninterest expense rose modestly from the first quarter. This was mainly due to a $24 million increase in marketing expenses related to a major brand campaign that was launched during the second quarter and a $6 million charge for further streamlining of operations in Argentina. FleetBoston now has 101 branches in Argentina compared with 135 at the beginning of 2002. Excluding these items, noninterest expense declined $9 million from the first quarter as management continues to exert control over expenses. During the quarter, an additional $7 million of savings was realized from the restructuring plan announced in January. To date, on an annualized basis, FleetBoston has realized approximately 80% of the estimated $100 million in expected cost savings.

17

LOAN PORTFOLIO,
CREDIT QUALITY &
CAPITAL

18

LOANS

Average Loans
		2003				2002
Dollars in millions		2Q		1Q		4Q		3Q		2Q
OWNED
Commercial:
	Commercial and Industrial — Domestic	$	37,504	$	39,306	$	41,292	$	43,029	$	45,785
	Commercial Real Estate — Domestic		10,530		10,825		10,997		11,298		11,696
	International		11,070		11,419		12,152		13,204		15,213
Total Commercial Loans			59,104		61,550		64,441		67,531		72,694
	Lease Financing — Domestic		10,568		10,950		10,983		11,168		11,364
	Lease Financing — International		3,286		3,203		3,066		2,930		2,924
Total Leases			13,854		14,153		14,049		14,098		14,288
Total Commercial Loans and Leases			72,958		75,703		78,490		81,629		86,982
Consumer:
	Home Equity		25,730		23,972		20,812		16,970		15,319
	Residential Real Estate		14,766		12,662		8,938		7,188		6,493
	Credit Card		5,377		5,913		6,007		5,699		5,059
	Other Consumer		3,348		3,495		3,515		3,905		4,310
	International		1,093		1,005		1,021		1,129		1,376
Total Consumer			50,314		47,047		40,293		34,891		32,557
Total Loans-Owned			123,272		122,750		118,783		116,520		119,539
SECURITIZED
	Credit Card		9,373		9,845		10,389		9,770		9,949
	Collateralized Loan Obligation		4,538		4,538		4,559		4,196		3,900
	Lease Financing		605		630		669		685		675
	Consumer Asset Finance		909		405		462		503		547
Total Securitized Loans			15,425		15,418		16,079		15,154		15,071
Total Managed Loans		$	138,697	$	138,168	$	134,862	$	131,674	$	134,610

Total average loans-owned grew $0.5 billion from the first quarter. An analysis of the major changes by category follows:

q	Residential mortgage loans grew $2.1 billion reflecting portfolio purchases made during the first quarter and a decision to retain a greater number of originated loans.
q	Home equity loans grew $1.8 billion reflecting current market conditions (low interest rate environment) and an increased emphasis on cross-selling this product to existing customers. The home equity portfolio has an average loan-to-value ratio of 60%, customers have an average FICO score of 764, and approximately 63% of the portfolio represents first liens on the property.
q	Domestic commercial and industrial loans declined $1.8 billion reflecting continued low customer demand, tightened underwriting, and the final actions of the completed corporate program to reduce targeted credit exposures.
q	All other loans/leases were down $1.6 billion (net) reflecting lower levels of leases, commercial real estate, credit card and international loans.

19

Credit Cards - Domestic
Dollars in millions
June 30, 2003	Owned			Securitized			Managed *
Period-end Receivables	$	5,319		$	9,332		$	14,651
Average Receivables		5,377			9,373			14,750
Net Charge-offs		69.8			171.5			241.3
Delinquent Receivables		202.4			366.9			569.3
Charge-off Ratio (annualized)		5.21	%		7.34	%		6.56	%
Delinquency Ratio		3.81			3.93			3.89

Period-end, average and delinquent receivables are shown net of uncollectable reserve for Accrued Interest Receivable (AIR). This reserve decreased period-end receivables by $81MM on a managed basis, $54MM on a securitized basis, and $27MM on an owned basis. Delinquent receivables were decreased by $76MM on a managed basis, $51MM on a securitized basis, and $25MM on an owned basis.

March 31, 2003	Owned			Securitized			Managed *
Period-end Receivables	$	5,431		$	9,506		$	14,937
Average Receivables		5,913			9,845			15,758
Net Charge-offs		78.5			159.1			237.6
Delinquent Receivables		183.1			388.4			571.5
Charge-off Ratio (annualized)		5.38	%		6.56	%		6.12	%
Delinquency Ratio		3.37			4.09			3.83

Previously published information for March 31, 2003 has been restated to show delinquent receivables and the delinquency ratio net of uncollectable reserve for Accrued Interest Receivable (AIR). This reserve decreased period-end receivables by $81MM on a managed basis, $56MM on a securitized basis, and $25MM on an owned basis. Delinquent receivables were decreased by $78MM on a managed basis, $53MM on a securitized basis, and $25MM on an owned basis.

* Managed balances represent the aggregate of both owned and securitized credit card receivables.

The decline in the average balance of managed credit card receivables reflects FleetBoston’s greater emphasis on secured consumer lending (home equity loans and residential mortgages) in the current economic environment, as well as a conscious slow-down in national card solicitations. The Corporation is seeking to have a greater proportion of total credit card receivables from Fleet banking customers. Currently, approximately 20% of the credit card portfolio pertains to Fleet banking customers vs. 17% a year ago.

Dollar amounts of net charge-offs and delinquent receivables were basically flat (2Q’03 vs. 1Q’03); however, the charge-off and delinquency ratios increased mainly due to a decline in managed receivables for the reasons discussed above.

20

CREDIT QUALITY

Events in Argentina have had a significant impact on the Corporation’s levels of nonperforming assets, credit losses and reserves. Below is an analysis of credit quality data for the most recent five quarters that isolates the impact of Argentina on the consolidated totals.

		2003						2002
Dollars in millions		2Q			1Q			4Q			3Q			2Q
Nonperforming Assets
	Argentina	$	1,326		$	1,461		$	1,680		$	1,901		$	2,025
	All other		1,277			1,512			1,779			1,858			1,866
	Total	$	2,603		$	2,973		$	3,459		$	3,759		$	3,891
Net Loan Charge-offs
	Argentina	$	78		$	196		$	157		$	134		$	30
	All other		410			430			450			352			950
	Total	$	488		$	626		$	607		$	486		$	980
Reserve for Credit Losses
	Argentina	$	605		$	681		$	870		$	1,023		$	1,156
	All other		2,593			2,725			2,994			2,704			2,711
	Total	$	3,198		$	3,406		$	3,864		$	3,727		$	3,867
Reserve/Loans
	Argentina		29.70	%		30.58	%		36.07	%		37.24	%		37.62	%
	All other		2.13	%		2.24	%		2.54	%		2.37	%		2.40	%
	Total		2.58	%		2.75	%		3.21	%		3.18	%		3.33	%
Net Loan Charge-offs/Average Loans
	Argentina		14.42	%		33.64	%		23.86	%		18.11	%		2.81	%
	All other		1.36	%		1.45	%		1.54	%		1.23	%		3.31	%
	Total		1.59	%		2.07	%		2.03	%		1.65	%		3.29	%
Reserve/Nonperforming Loans
	Argentina		63	%		63	%		68	%		69	%		73	%
	All other		212	%		187	%		173	%		148	%		149	%
	Total		146	%		134	%		129	%		113	%		113	%
Nonperforming Assets/Related Assets
	Argentina*		55.27	%		55.96	%		59.66	%		59.95	%		57.73	%
	All other		1.05	%		1.24	%		1.51	%		1.62	%		1.65	%
	Total*		2.09	%		2.39	%		2.86	%		3.20	%		3.33	%

* Calculation includes Argentine securities.

21

The following tables present credit quality information for the Corporation’s loan portfolio over the most recent five quarters:

Nonperforming Assets (NPAs)
		2003				2002
Dollars in millions		2Q		1Q		4Q		3Q		2Q
Nonaccrual Loans excluding Argentina
	Commercial and Industrial — Domestic	$	874	$	1,078	$	1,432	$	1,564	$	1,561
	Commercial — International		179		200		139		138		103
	Commercial Real Estate — Domestic		70		80		73		39		68
	Consumer — Domestic		77		80		72		74		77
	Consumer — International		25		19		11		7		9
Subtotal			1,225		1,457		1,727		1,822		1,818
Other Nonperforming Assets			52		55		52		36		48
Total Nonperforming Assets excluding Argentina			1,277		1,512		1,779		1,858		1,866
Argentina			1,326		1,461		1,680		1,901		2,025
Total Nonperforming Assets		$	2,603	$	2,973	$	3,459	$	3,759	$	3,891

Nonperforming Assets Reconciliation
	2003						2002
Dollars in millions	2Q			1Q			4Q			3Q			2Q
Beginning Balance	$	2,973		$	3,459		$	3,759		$	3,891		$	2,070
Additions		494			629			747			740			2,738
Reductions		(864	)		(1,115	)		(1,047	)		(820	)		(777	)
NPAs Reclassified as Held for Sale or Accelerated Disposition		—			—			—			(52	)		(140	)
Ending Balance	$	2,603		$	2,973		$	3,459		$	3,759		$	3,891

Note: At June 30, 2003, assets held for sale or accelerated disposition had a net carrying value of $21 million, compared with $45 million at March 31, 2003. These assets are excluded from the NPA information presented above. Transfers of loans to assets held for sale or accelerated disposition are made in accordance with management’s intention to focus accelerated resources on their disposition.

Note: Additions for 2Q’02 include $1,921 million from Argentina and $817 million from all other sources.

22

Domestic NPA Portfolio - 2Q 2003
Stratification
Range	Amount		#
$ in MM	$ in MM		Loans
$50 -to- $75	$	62		1
$25 -to- $50		230		7
$10 -to- $25		292		21
Less Than $10		467
Total Domestic NPAs	$	1,051

Rollforward of Reserve for Credit Losses
	2003						2002
Dollars in millions	2Q			1Q			4Q			3Q			2Q
Beginning Balance	$	3,406		$	3,864		$	3,727		$	3,867		$	3,609
Provision for Credit Losses		285			280			750			352			1,250
Charge-offs		566			698			676			542			1,041
Recoveries		(78	)		(72	)		(69	)		(56	)		(61	)
Net Loan Charge-offs		488			626			607			486			980
Other		(5	)		(112	)		(6	)		(6	)		(12	)
Ending Balance	$	3,198		$	3,406		$	3,864		$	3,727		$	3,867
Ending Balance excluding Argentina	$	2,593		$	2,725		$	2,994		$	2,704		$	2,711

Note: The $112 million in the “Other” line in 1Q’03 is primarily due to the Corporation’s adoption of new FFIEC accounting standards related to credit card loans. To comply with these new rules, a portion of the Corporation’s reserve for credit losses, which related to estimates of uncollectable credit card interest, was transferred to related asset categories. There was no income statement impact from adopting these new rules.

23

Summary of Credit-Related Costs
	2003				2002
Dollars in millions	2Q		1Q		4Q		3Q		2Q
Provision for Credit Losses	$	285	$	280	$	750	$	352	$	1,250
Charges to Noninterest Income		30		30		50		18		—
Total Credit-Related Costs	$	315	$	310	$	800	$	370	$	1,250

Net Charge-Offs
		2003				2002
Dollars in millions		2Q		1Q		4Q		3Q		2Q
Net Charge-offs excluding Argentina
	C & I Loans and Leases	$	292	$	275	$	276	$	251	$	829
	International		23		41		81		8		27
	Commercial Real Estate		6		9		4		5		1
Total Commercial			321		325		361		264		857
	Credit Card		70		79		63		65		65
	Other Consumer		14		16		18		17		21
	International		5		9		8		6		7
	Residential		—		1		—		—		—
Total Consumer			89		105		89		88		93
Total Net Loan Charge-offs excluding Argentina			410		430		450		352		950
	Argentina		78		196		157		134		30
Total Net Loan Charge-offs			488		626		607		486		980
	Charges to Noninterest Income		30		30		50		18		—
Total Net Charge-offs		$	518	$	656	$	657	$	504	$	980

24

CAPITAL

Capital and Share Data
	2003						2002
Dollars in millions, except per share data	2Q			1Q			4Q			3Q			2Q
Common Equity	$	17,167		$	16,861		$	16,562		$	16,595		$	16,545
Total Stockholders’ Equity		17,438			17,132			16,833			16,866			16,816
Tier 1 Capital *		15,242			15,254			15,049			15,120			14,997
Total Capital *		21,124			21,361			21,399			21,615			21,754
Market Capitalization		31,220			25,037			25,449			21,286			34,003
Tangible Common Equity/Assets		6.54	%		6.29	%		6.40	%		6.52	%		6.37	%
Total Equity/Assets		8.85			8.60			8.84			9.01			8.80
Tier 1 Capital Ratio *		8.43			8.36			8.24			8.24			8.15
Total Capital Ratio *		11.68			11.71			11.72			11.77			11.82
Leverage Ratio *		7.95			8.03			8.27			8.34			8.11
Book Value Per Share	$	16.32		$	16.04		$	15.78		$	15.84		$	15.79
Shares Outstanding, period-end (in millions)		1,052.1			1,051.3			1,049.8			1,047.7			1,047.6
Average Diluted Shares Outstanding (in millions)		1,050.8			1,048.4			1,047.3			1,047.0			1,051.1

*2Q 2003 are estimates

At June 30, 2003, FleetBoston exceeded all regulatory required minimum capital ratios, and its banking subsidiaries were considered well capitalized according to regulatory guidelines.

Common Stock Data
	2003				2002
	2Q		1Q		4Q		3Q		2Q
Stock Price at End of Period	$	29.71	$	23.88	$	24.30	$	20.33	$	32.35
High Price for the Period		31.15		27.64		27.49		31.75		36.60
Low Price for the Period		24.55		21.98		17.75		18.75		30.70
Dividend declared		.35		.35		.35		.35		.35
Dividend paid		.35		.35		.35		.35		.35

FleetBoston Financial (FBF) is traded on the NYSE and the Boston Stock Exchange with total equity of $17.4 billion and a book value per share of $16.32 at June 30, 2003.

25

REVIEW OF
BUSINESS LINE
RESULTS

26

Line of Business Results: Total Company

Net Income

27

LINE OF BUSINESS RESULTS

     Line of business results are monitored by an internal profitability measurement system. Business line earnings are subject to periodic restatements based on modifications to management accounting practices, profitability measurement system enhancements and organizational changes. The business line financials presented herein conform to the organizational hierarchy that was announced during the second quarter, which includes FleetBoston’s three major business lines, Personal Financial Services, National Commercial Financial Services and Regional Commercial Financial Services & Investment Management, as well as Capital Markets and International Banking. Discontinued operations reflect the 2Q’03 gain from the sale of InterPay and results for Robertson Stephens and Asia.

Line of Business Earnings Summary
							Quarterly Results
	Net Income (Loss)						Revenue						Return on Equity
Dollars in millions	2Q'03			1Q'03			2Q'03			1Q'03			2Q'03			1Q'03
Personal Financial Services	$	258		$	221		$	1,398		$	1,333			22	%		19	%
National CFS		199			182			635			623			17			14
Regional CFS and Investment Management		105			95			602			589			12			11
International Banking		—			29			202			216			nm			8
Capital Markets		(43	)		(31	)		(1	)		24			nm			nm
All Other		52			81			(59	)		(25	)		nm			nm
Discontinued Operations		53			(10	)		na			na			nm			nm
Total FleetBoston	$	624		$	567		$	2,777		$	2,760			15	%		14	%

	Six Months Ended June 30
	Net Income (Loss)						Revenue					Return on Equity
Dollars in millions	2003			2002			2003			2002		2003			2002
Personal Financial Services	$	479		$	500		$	2,731		$	2,668		21	%		23	%
National CFS		381			381			1,258			1,351		16			13
Regional CFS and Investment Management		200			247			1,191			1,268		12			14
International Banking		29			(394	)		419			210		4			nm
Capital Markets		(74	)		4			22			176		nm			nm
All Other		133			(108	)		(83	)		114		nm			nm
Discontinued operations		43			(281	)		na			na		nm			nm
Total FleetBoston	$	1,191		$	349		$	5,538		$	5,787		14	%		4	%

28

PERSONAL FINANCIAL SERVICES

A. Profile

• Nearly 5.3 million retail households & approximately 475,000 small businesses

• Leading position in 4 of the top 6 states based on per capita income

• 30% household share in New England

• 1,459 Stores & 3,424 ATMs

• 3^rd Largest bank-owned Brokerage Company

• 91 Fleet Investor Centers staffed with over 900 brokers

• Approximately 1,500 Investment Consultants selling within our stores

B. Comparative Data
			2003						Change
Dollars in millions			2Q			1Q
Net Income
	Consumer Banking		$	190		$	156			$	34
	Small Business			34			32				2
	Credit Card			34			33				1
		Total	$	258		$	221			$	37
Revenues
	Consumer Banking		$	827		$	766			$	61
	Small Business			147			146				1
	Credit Card			424			421				3
		Total	$	1,398		$	1,333			$	65
ROE				22	%		19	%			300	bp
Average Loans (Managed)
	Credit Card		$	14,750		$	15,758			$	(1,008	)
	Home Equity (excl Resi Mortgages which are carried in Treasury)			25,547			23,362				2,185
	Other			4,967			5,028				(61	)
	Total		$	45,264		$	44,148			$	1,116

C. Analysis of Results (2Q’03 vs. 1Q’03)

     Personal Financial Services earned $258 million for the quarter which represents an increase of $37 million or 17% over the prior quarter. Strong growth in home equity loans and low-cost core deposits (up 9% and 5%, respectively) contributed to these positive results. In addition, solid fee growth due to deposit and brokerage volume increases, improved credit card spreads due to repricings and continued expense management more than offset the impact of lower deposit spreads and lower credit card portfolio sale gains.

29

REGIONAL COMMERCIAL FINANCIAL SERVICES
and INVESTMENT MANAGEMENT

A. Profile

•	30,000 Commercial Customers
•	30% Market Share in Northeast of commercial customers with $10 to $500 million of sales
•	224,000 High Net Worth Customers
•	Core/Target Commercial Clients: Small to mid-size firms ($2MM-$500MM), Healthcare, Non-Profit, Professional Svcs
•	Key Solutions: Credit, Cash Management, Trade Services, Asset Management, Personal Financial Planning
•	#1 in middle market and small business in the Northeast
•	#1 in cash management in the northeast; #5 nationally
•	#2 in middle market syndications
•	#4 issuer of Commercial Letters of Credit
•	Columbia Management Group is a Top 30 Global Asset Manager
	Ø   $148 Billion in Assets Under Management

B. Comparative Data
			2003				Change
Dollars in millions			2Q		1Q
Net Income
	Regional Commercial Financial Services		$	67	$	62		$	5
	Investment Management			38		33			5
		Total	$	105	$	95		$	10
Revenues
	Regional Commercial Financial Services		$	334	$	327		$	7
	Investment Management			268		262			6
		Total	$	602	$	589		$	13
Average Loans (Managed)
	Regional Commercial Financial Services		$	15,057	$	15,377		$	(320	)
	Investment Management			4,098		4,162			(64	)
		Total	$	19,155	$	19,539		$	(384	)

30

B. Comparative Data (continued)
			2003						Change
Dollars in millions			2Q			1Q
ROE				12	%		11	%			100	bp
Domestic Assets Under Management (in billions)			$	148		$	139			$	9
Product Revenues
	Cash Management & Deposit Fees		$	48.9		$	53.7			$	(4.8	)
	Corporate Finance Fees			5.3			1.6				3.7
	Trade Services			12.4			12.1				.3
	FX & Derivatives			18.0			16.6				1.4
	Investment Products			3.6			3.7				(.1	)
		Total	$	88.2		$	87.7			$	0.5

C. Analysis of Results (2Q’03 vs. 1Q’03)

     Regional Commercial Financial Services and Investment Management earned $105 million in the current quarter versus $95 million last quarter. Regional Commercial Financial Services benefited from increased volume, primarily seasonal government tax processing and continued expense management while Investment Management benefited from recent improvements in the equity markets.

31

NATIONAL COMMERCIAL FINANCIAL SERVICES

A. Profile

• 60,000 Customers

• Core/Targeted Clients: National Mid-Cap, Asset-Based, Leasing, Real Estate, Financial Institutions

• Key Solutions: Credit, Capital Markets, FX/Derivatives, Leasing, Cash Management

• # 2 bank-owned leasing company

• # 2 real estate lead arranger

• Top 3 bank-owned asset based lender

• Top 3 non-investment-grade lead arranger

B. Comparative Data
			2003						Change
Dollars in millions			2Q			1Q
Net Income
	Specialized Finance		$	142		$	112			$	30
	National Banking			57			70				(13	)
		Total	$	199		$	182			$	17
Revenues
	Specialized Finance		$	432		$	383			$	49
	National Banking			203			240				(37	)
		Total	$	635		$	623			$	12
Average Loans (Managed)
	Specialized Finance		$	37,089		$	37,666			$	(577	)
	National Banking			11,278			12,915				(1,637	)
		Total	$	48,367		$	50,581			$	(2,214	)
ROE				17	%		14	%			300	bp
Product Revenues
	Cash Management & Deposit Fees		$	57.3		$	60.6			$	(3.3	)
	Corporate Finance Fees			56.2			49.7				6.5
	Trade Services			29.5			29.7				(.2	)
	FX & Derivatives			24.7			21.5				3.2
	Investment Products			4.6			4.7				(.1	)
		Total	$	172.3		$	166.2			$	6.1

C. Analysis of Results (2Q’03 vs. 1Q’03)

     National Commercial Financial Services earned $199 million in the current quarter, compared to $182 million in the prior quarter. The second quarter earnings reflect the impact of higher investment banking and loan fees. In addition, a decline in loan volume resulted in lower credit-related charges; however the loan volume decline also negatively impacted net interest income.

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International Banking
							Quarterly Results
	Net Income (Loss)						Revenue						Return on Equity
Dollars in millions	2Q'03			1Q'03			2Q'03			1Q'03			2Q'03			1Q'03
Brazil	$	31		$	45		$	144		$	150			25	%		37	%
Argentina		(46	)		(29	)		(22	)		(10	)		nm			nm
Other International Units		15			13			80			76			18			14
Total International Banking	$	—		$	29		$	202		$	216			nm	%		8	%

          International Banking produced break-even results in the second quarter of 2003 compared to net income of $29 million in the prior quarter. Argentina’s results include a one-time net charge totaling $38 million after-tax for establishing a deposit redollarization reserve, securities writedowns, streamlining of operations, and a gain on the sale of Argentina’s pension unit. Argentine results excluding these charges improved $21 million versus the prior quarter mainly due to lower foreign exchange losses from the court-ordered payout of certain deposits in U.S. dollars. Brazil earned $31 million in the second quarter of 2003 compared to $45 million in the prior quarter as a result of lower foreign exchange and trading revenues and a Q1 reduction of incentive compensation expense.

Capital Markets
							Quarterly Results
	Net Income (Loss)						Revenue						Return on Equity
Dollars in millions	2Q'03			1Q'03			2Q'03			1Q'03			2Q'03			1Q'03
Fleet Specialist/Execution & Clearing	$	10		$	18		$	72		$	89			7	%		14	%
Principal Investing		(53	)		(49	)		(73	)		(65	)		nm			nm
Total Capital Markets	$	(43	)	$	(31	)	$	(1	)	$	24			nm	%		nm	%

          The Capital Markets businesses reported a loss of $43 million in the second quarter of 2003 compared to a loss of $31 million in the first quarter. Fleet Specialist/Execution & Clearing earned $10 million in the second quarter versus $18 million in the first quarter due to extremely difficult market conditions for this industry mainly due to a decline in market volatility, which results in lower revenue. Principal Investing incurred a loss of $53 million in the current quarter compared to a loss of $49 million in the first quarter as higher gains largely offset the increased valuation adjustments taken in the second quarter.

************

          All Other includes transactions not allocated to the principal business lines and the residual impact of methodology allocations, as well as the business activities of the Treasury unit, which is responsible for managing the Corporation’s securities and residential mortgage portfolios, balance sheet management functions and wholesale funding.

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PERSONAL FINANCIAL SERVICES — Q2’03 HIGHLIGHTS

Our Consumer Brand Promise: Fleet helps me make smarter decisions with my money so I can
move forward with confidence.

Growth during 2Q’03

• Core consumer deposits, including those from Private Clients Group, up $3B (or 21% annualized) from last quarter and up 12% from last year with growth from last year experienced in all major geographic markets.

Ø	NY up 19%, CT/RI up 18%, NJ up 10%, MA up 10% (May’03 vs. May’02)
Ø	See graph on page 36 for trend in core deposits.

• Total retail accounts up 120M from last quarter (Apr’03 vs. Jan’03); up 537M over last year (Apr’03 vs. Apr’02)

Ø	Metro New York up 49M from last quarter; up 206M from last year
Ø	NJ/PA up 66M from last quarter; up 222M from last year

• Growth in Home Equity lending remains strong and continues to come predominately from customers refinancing mortgages into our first lien products.

Ø	63% of Home Equity outstandings are in a first lien position as of June ’03; up from 52% in June’02.
Ø	The average/weighted Loan-to-Value of the Home Equity portfolio is 60%.
Ø	The average/weighted FICO score of the Home Equity portfolio is currently 764.

• Credit profile of the Credit Card portfolio remains strong as 78% of balances have FICO scores over 660.

• Products per household have grown in every market and in every customer segment over last year and now total 3.74 per household (as of April’03).

Ø  Product Penetration (% of Fleet retail households with the following products as of April’03)

§	Checking account 76% (vs. 72% last year)
§	Active Online (HomeLink) account 22% (vs. 17% last year)
§	Fleet Credit Card 20% (vs. 17% last year)
§	Home Equity Line/Loan 10% (vs. 8% last year)

• Total account balance per household increased 3% from last quarter (Apr’03 vs. Jan’03).

• The 12-month rolling retail customer attrition rate has declined to 15.9% in June’03 vs. 17.2% in June’02 with improvements in every market.

• Special product revenues at Quick & Reilly totaled $71MM; up $10MM (or 17%) from last quarter and up $5MM (or 8%) from the same quarter last year.

• Mutual Fund sales through third-parties totaled $2.9B in the quarter, strong in absolute terms, flat compared to last quarter and the same quarter of last year.

• Excluding money market accounts, Columbia Management Group experienced positive net inflows into mutual funds during the quarter of $425MM. Our top performing Wanger Acorn and Columbia High Yield funds continue to drive this success.

• During the quarter, we opened 7,100 new Asset Management Accounts, our cornerstone product offering to affluent customers, delivering all the functionality of a full service brokerage account with complete access to the entire banking product suite.

• Average daily retail trades on brokerage accounts improved by 25% during the quarter to 20M trades/day.

Operating Results: Comparison to Prior Year

• The low interest rate environment continues to depress the earnings of PFS as the value of deposit balances has declined. Had deposit spreads remained unchanged from last year, Q2’03 earnings would have grown by 22% over Q2’02.

34

Improving Customer Service

• Further expanded our Winning. Gold. program to include the employees of Quick & Reilly, Private Clients and Columbia Management Group. Winning. Gold. is our comprehensive, long-term program to deliver gold standard service to customers, employees and shareholders.

• Our Online Banking and Investing Station was recently named “Best Financial Services Kiosk Application” at the Interactive Kiosk Excellence Awards in May.

• For the first time, each unit within the Telephone Banking division achieved the Gold Standard for customer favorability with ratings ranging from 82% to 87% for overall customer satisfaction.

Other Growth Initiatives

• Columbia Management Group launched the Columbia 529 Plan; a state-of-the-art, tax-advantaged college savings plan that offers age-based, asset allocation, or customized portfolios to customers saving for their child’s education.

• Converted three processing sites for envelopes deposited in ATMs located in MA, CT, and NJ. The conversions utilize NCR ImageMark Capture technology to reduce manual keying of deposits by more the 80%.

• Began offering five to ten-year term Home Equity loans designed to expand sales to consumers looking to refinance their first mortgage.

• Rolled-out Fleet Money Management Check-Up ^sm in stores throughout the Metro Boston area. Store personnel are scheduling appointments with new and existing customers to review their deposit and credit portfolios as well as their investable assets, whether with Fleet or other financial institutions.

• Launched a program called “Reverse Calling Nights” where Senior Financial Consultants from Quick & Reilly contact their customers in an effort to offer more banking services. Typically, the referral process has been to contact banking customers with investment product offerings. Over 24,000 calls were made in the first week resulting in 5,000 appointments.

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36

Electronic Banking

• 72% of total ATM/Debit card customers are enrolled in HomeLink.

• Number of active HomeLink accounts up 28% over the past year; currently growing at 19M accounts per month. Average daily logins during the quarter were 299M, up 30% from last year.

• Active HomeLink customers with Bill Pay increased to 381M in June’03; up 3% from March’03.

• Active HomeLink customers made 2.6 million bill-payments in June’03; up 21% from a year ago.

• 122M HomeLink customers also have a linked Quick & Reilly account; growing by 4,000 accounts per month.

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COMMERCIAL FINANCIAL SERVICES

(REGIONAL & NATIONAL)

Q2’03 HIGHLIGHTS

Our Commercial Brand Promise: Fleet provides me with an expert ally whose ideas and
        solutions will fuel my growth and drive my success

Growth During 2Q’03

• Number of CFS customers has increased 4% from a year ago.

• Total number of products sold to CFS customers is up 5% in the last year.

• Revenue per CFS customer has increased 6% in the last year.

• Commercial Low Cost Core Deposits totaled $28.4B; up 18% annualized from last quarter.

• Product Penetration (% of CFS customers with the following products as of June’03)

Ø	Cash Management 83% (vs. 80% last year)
Ø	Capital Markets 19% (vs. 16% last year)
Ø	Leasing 8% (vs. 5% last year)
Ø	Asset Management 12% (vs. 9% last year)

• Broader acceptance of asset-based finance bolstered Fleet’s national asset-based lending franchise from Q1 to Q2 with a continued increase in new loan volume AND a 6.5% increase in customer borrowing levels.

Customer Initiatives

• Fleet reinforced its leadership position in New Jersey and its confidence in the region’s economy by committing an additional $1 billion in lending capacity to NJ businesses. In the most extensive one-day face-to-face customer and prospect calling campaign ever conducted by a Garden State bank, representatives from Commercial Financial Services and Personal Financial Services made over 10,000 visits to major commercial clients and prospective new customers to convey Fleet’s commitment to the region.

• The Bond Buyer recently recognized Fleet’s $1.3B municipal bond portfolio as one of the largest in the country, with Fleet moving up one place from last year in the annual ranking of portfolio size. Fleet’s bond portfolio is used to support Fleet Government Banking’s relationships with almost 4,000 government entities throughout the Northeast by funding short-term loans for operating capital.

• Government Banking opened a new office in Washington, D.C. focused on acquiring new federal government business.

• Treasury Management & Trade Services launched a new quarterly publication, Treasury Perspective^SM, designed to keep customers informed about industry trends and challenges as well as Fleet solutions.

Product & Service Improvements

• Columbia Management Group introduced 13 new funds to service our institutional asset management clients. This brings our total institutional fund offerings to 20 funds.

• As part of Fleet’s $17 million investment in upgrades to enhance our imaging and processing capabilities, a seventh processing site in Dallas, Texas, went into operation this quarter. This site complements Fleet’s existing national network and is equipped with state-of-the-art technology to provide same-day Internet image delivery, complemented CD-ROMs, intra-day float reporting via Fleet WebConnect®, and integrated receivables files with lockbox, ACH, and wire deposit information.

• Continued to enhance Business Advisor, our award winning Customer Relationship Management system. This quarter, Business Advisor added research content from OneSource and Loan Pricing Corp., tracking of customer service request cases, and portfolio profitability reporting for relationship managers.

Reducing Risk & Volatility

• Non-performing assets declined 12% in 2Q’03 and have been reduced by $1.3B or 33% since 2Q’02.

• Credit revenue reliance has been reduced from 49% in 1999 to 36% in 2Q’03.

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39

ARGENTINA

	I.	Comparative Financial Information
										2Q'03			1Q'03			4Q'01
		A.				Balance Sheet (in billions) (1)
						Assets			$	3.2		$	3.4		$	9.3
						Securities				.4			.4			.3
						Loans
								Commercial		1.5			1.7			4.5
								Consumer		.3			.3			1.8
								Sovereign		.2			.2			.4
						Total Loans				2.0			2.2			6.7
						Loan Loss Reserves (2)				.6			.7			.9
						Reserve for ongoing court-ordered deposit reimbursement				.1			—			—
						Deposits				1.5			1.3			4.4
			(	1	)		Declines in assets and deposits from 4Q’01 due mainly to pesofication and weakening of the local currency.
			(	2	)		The reserve totals shown reflect charges taken in 2Q’02 and 4Q’01 as well as the portion of the general reserve for credit losses that has been allocated to Argentina. Credit losses are charged against the reserve.
		B.				Income Statement (in millions) (3)
						Net Interest Revenue			$	18		$	16		$	122
						Noninterest Income				11			(26	)		(1	)
						Expenses				45			37			102
						Provision for Credit Losses				0			0			725
						Gain from sale of investment in pension company				64			—			—
						Charges (4)				(121	)		—			(325	)
						Net Loss				(46	)		(29	)		(634	)
			(	3	)		Revenue and expense levels were affected by a weakening of the local currency since 4Q’01. Revenue levels were also affected by a significant increase in nonperforming assets, and new government policies. The credit loss provision is zero in 2Q’03 and 1Q’03 as all credit losses were charged against the reserves established in preceding quarters.
			(	4	)		2Q’03 charges include $100 million for establishing a reserve related to the estimated impact of redollarization actions on applicable deposits. This action should also mitigate the future impact of costs currently being incurred by the ongoing court-ordered settlements with individual depositors. 2Q’03 also includes a $21 million charge for securities writedowns and streamlining of operations. 4Q’01 charges include $200 milli on for pesofication and $125 million for securities writedowns.
		C.				Credit Quality (in millions) (5)
						NPAs			$	1,326		$	1,461		$	263
						Chargeoffs				78			196			39
			(	5	)		The growth in NPAs from 4Q’01 is mainly due to a higher level of commercial loan NPAs and the placement of all sovereign loans and securities on nonaccrual; $.4 billion of the 1Q’03 NPAs are securities and the remainder are loans. The decline in NPAs from 1Q’03 is mainly due to chargeoffs and collections.
		D.				Estimated Cross-border (in billions)
							Trade-Related		$	.4		$	.4		$	1.0
							Other			1.3			1.6			3.8
								Sub-total		1.7			2.0			4.8
							Risk Mitigation:
								Guarantees		( .2	)		( .3	)		( .7	)
								Insurance		( .4	)		( .4	)		( .8	)
							Net Total		$	1.1		$	1.3		$	3.3
II.		Developments During the Quarter

• New president, Nestor Kirchner, sworn in May 25, 2003.

• 1Q’03 GDP rose 5.4% vs. 1Q’02; first year-over-year increase in GDP since 1Q’98.

• Balance sheet translated at 6/30/03 exchange rate of 2.81 pesos per dollar vs. 2.96 at 3/31/03.

• Total translation gains for 2Q’03 and 1Q’03 were $7 million and $20 million (after-tax), respectively; translation losses were $358 million (after-tax) for all of 2002. Translation gains/losses are recorded directly to stockholders’ equity, net of tax.

40

BRAZIL

	I.	Comparative Financial Information
										2Q'03			1Q'03			4Q'01
		A.				Balance Sheet (in billions) (1)
						Assets			$	8.8		$	9.0		$	12.0
						Securities				.7			.7			1.9
						Loans (2)
								Commercial		5.0			4.9			6.9
								Consumer		.3			.3			.4
						Total Loans				5.3			5.2			7.3
			(	1	)		The decline in asset levels since 4Q’01 is mainly due to risk reduction measures.
			(	2	)		Approximately $325 million of the Corporation’s loan loss reserve has been allocated to Brazil at June 30, 2003, comparable to that at March 31, 2003.
		B.				Income Statement (in millions) (3)
						Net Interest Revenue			$	103		$	104		$	124
						Noninterest Income				40			46			60
						Expenses				85			69			85
						Provision for Credit Losses				9			8			8
						Net Income (4)				31			45			57
			(	3	)		Revenues and earnings are down since 4Q’01 due to balance sheet downsizing as well as from reducing currency and interest rate risk positions.
			(	4	)		The decline in net income from 1Q’03 to 2Q’03 is mainly related to the absence of 1Q incentive compensation adjustments and lower trading profits.
		C.				Credit Quality (in millions)
						NPAs (5)			$	129		$	129		$	18
						Chargeoffs				5			43			5
			(	5	)		The increase in NPAs from 4Q’01 is mainly due to utility and telecom credits.
		D.				Estimated Cross-border (in billions)
							Trade-Related		$	2.8		$	3.1		$	3.6
							Other			3.1			3.1			4.8
								Sub-total		5.9			6.2			8.4
							Risk Mitigation:
								Guarantees from parents companies		(1.0	)		(1.0	)		(1.1	)
								Insurance		(1.0	)		(1.0	)		(1.1	)
								Guarantees from funding providers		( .5	)		( .7	)		(2.1	)
								Other trade-related risk mitigation		(1.3	)		(1.4	)		(1.6	)
							Net Total (6)		$	2.1		$	2.1		$	2.5
			(	6	)		Included in the cross-border totals, net of risk mitigation, were non-trade-related outstandings of $.1 billion in 2Q’03, $.1 billion in 1Q’03, and $.8 billion in 4Q’01.
II.		Developments during the Quarter

• Local currency (“real”) was 2.87 per dollar at June 30, 2003 vs. 3.35 at March 31, 2003.

• Annualized inflation declined to 11% in 2Q vs. 15.9% in 1Q.

• Central Bank lowered its benchmark rate from 26.5% to 26%.

• Brazil’s GDP now expected to grow around 1.5% in 2003.

• Brazil’s sovereign credit outlook changed from stable to positive in June 2003 by Fitch rating agency.

41

Principal Investing Portfolio
	2003						Change			2002
	2Q			1Q						2Q
Portfolio Carrying Value (in billions)	$	3.2		$	3.4			(6	)%	$	3.7
Capital Drawdowns — Funds (in millions)		105			112			(6	)		124
New Money Invested — Directs (in millions)		13			12			8			14
Money Invested (in millions)		118			124			(5	)		138
Realized Gains on direct investments (in millions)		40			4			900			17
Other (mainly writedowns; in millions)		(105	)		(57	)		(84	)		(63	)
Net Writedowns/Realized Gains		(65	)		(53	)		(23	)		(46	)
Net Unrealized Gains on direct investments in Public Companies (in millions)	$	16		$	14			14		$	91

				Primary
Portfolio by Industry		Direct		Funds*
Manufacturing and Distribution			28		21	%
Consumer / Retail			22		10
Communication			13		8
Information Technology			8		10
Healthcare			7		10
Media / Entertainment			7		12
General Services			6		11
Financial Services			5		7
Real Estate			3		7
Energy			1		2
Other			—		2
	Total		100		100	%

* Information is based on an analysis of the individual investments held by the various funds. The analysis is based on data that is one or two quarters in arrears. Primary funds totaled $1.8 billion in 2Q’03.

Direct Portfolio Data
Geographic Breakdown				Aging of Portfolio
United States		85	%		2003	1	%
Europe		13			2002	3
Other		2			2001	9
	Total	100	%		2000	36
					1999	17
					<1998	34
					Total	100	%

42

This release contains forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from estimates. These risks and uncertainties include, among other things, (1) changes in general political and economic conditions, either domestically or internationally; (2) continued economic, political and social uncertainties in Latin America; (3) developments concerning credit quality, including the resultant effect on the level of the Corporation’s provision for credit losses, nonperforming assets, net charge-offs and reserve for credit losses; (4) continued weakness in domestic commercial loan demand, and the impact of that weakness on the Corporation’s lending activities; (5) changes in customer borrowing, repayment, investment and deposit practices; (6) interest rate and currency fluctuations, equity and bond market fluctuations and inflation; (7) changes in the mix of interest rates and maturities of our interest earning assets and interest bearing liabilities; (8) continued weakness in the global capital markets and the impact of that weakness on the Corporation’s principal investing and other capital markets-related businesses, and its wealth management and brokerage businesses, as well as the availability and terms of funding necessary to meet the Corporation’s liquidity needs; (9) changes in competitive product and pricing pressures within the Corporation’s markets; (10) legislative or regulatory developments, including changes in laws or regulations concerning taxes, banking, securities, capital requirements and risk-based capital guidelines, reserve methodologies, deposit insurance and other aspects of the financial services industry; (11) changes in accounting rules, policies, practices and procedures; (12) legal and regulatory proceedings and related matters with respect to the financial services industry, including those directly involving the Corporation and its subsidiaries; (13) the effectiveness of instruments and strategies used to hedge or otherwise manage the Corporation’s exposure to various types of market and credit risk; and (14) the effects of terrorist activities or other hostilities, including geopolitical stresses in the Middle East and other areas. For further information, please refer to the Corporation’s reports filed with the SEC.

43