8-K

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported):

July 14, 2003

BANK OF AMERICA CORPORATION

(Exact name of registrant as specified in its charter)

Delaware

(State or other jurisdiction of incorporation or organization)

1-6523

(Commission File Number)

56-0906609

(IRS Employer Identification No.)

100 North Tryon Street

Charlotte, North Carolina

(Address of principal executive offices)

28255

(Zip Code)

(704) 386-8486

(Registrant’s telephone number, including area code)

ITEM 5.    OTHER EVENTS.

On July 14, 2003, Bank of America Corporation (the “Registrant”) announced financial results for the second quarter ended June 30, 2003, reporting earnings of $2.74 billion and diluted earnings per common share of $1.80. A copy of the press release announcing the Registrant’s results for the second quarter ended June 30, 2003 is attached hereto as Exhibit 99.1 and incorporated by reference herein.

ITEM 7.    FINANCIAL STATEMENTS AND EXHIBITS.

(c)    Exhibits.

The following exhibits are filed herewith:

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
99.1	Press Release dated July 14, 2003 with respect to the Registrant’s financial results for the second quarter ended June 30, 2003
99.2	Supplemental Information prepared for use on June 30, 2003 in connection with financial results for the second quarter ended June 30, 2003

ITEM 9.    REGULATION FD DISCLOSURE.

On July 14, 2003, the Registrant held an investor conference and webcast to disclose financial results for the second quarter ended June 30, 2003. The Supplemental Information package for use at this conference is furnished herewith as Exhibit 99.2 and incorporated by reference in Item 9. All information in the Supplemental Information is presented as of June 30, 2003, and the Registrant does not assume any obligation to correct or update said information in the future.

The information in the preceding paragraph, as well as Exhibit 99.2 referenced therein, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933.

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

BANK OF AMERICA CORPORATION
By:	/s/    MARC D. OKEN
	Marc D. Oken Executive Vice President and Principal Financial Executive

Dated: July 14, 2003

EXHIBIT INDEX

EXHIBIT NO.	DESCRIPTION OF EXHIBIT
99.1	Press Release dated July 14, 2003 with respect to the Registrant’s financial results for the second quarter ended June 30, 2003
99.2	Supplemental Information prepared for use on July 14, 2003 in connection with financial results for the second quarter ended June 30, 2003.

EX-99.1

Exhibit 99.1

July 14, 2003

Investors may contact:

Kevin Stitt, Bank of America, 704.386.5667

Lee McEntire, Bank of America, 704.388.6780

Media may contact:

Eloise Hale, Bank of America, 704.387.0013

eloise.hale@bankofamerica.com

Bank of America earns record $2.7 billion in second quarter;

Earnings per share rise 29%

Shareholder Value Added grows 70% to $1.41 billion

Revenue rises 12%

Mortgage banking income quadruples to $559 million

Core deposits grow 9%

Equities, Mortgage-backed securities achieve

significant market share gains

Large corporate charge-offs hit three-year low

CHARLOTTE — Bank of America Corporation today reported record earnings of $2.74 billion for the second quarter, or $1.80 per share (diluted), 23 and 29 percent increases, respectively, from $2.22 billion, or $1.40 per share, a year ago. The return on common equity increased to 21.86 percent.

Broad-based gains across most product lines reflect the success of the company’s customer relationship strategy. Strong gains were achieved in such products as mortgage, debit and credit card, deposits and loans. The company had its best quarter ever in investment banking and continued to make significant progress building its asset management business. In addition, loan charge-offs declined 13 percent from a year earlier.

“These strong results show that we are realizing our potential as the best and most diverse franchise in US banking,” said Kenneth D. Lewis, chairman and chief executive officer. “These are the results that our customer-focused strategy intended to produce and they will continue to differentiate Bank of America in the eyes of customers and investors.”

“While the consumer bank continues to significantly drive earnings, the core results in our market-related businesses are positive,” Lewis said. “And I am especially excited about the increase in customer metrics such as satisfaction across all of these businesses.”

Page 2

Net income for the first half of 2003 was $5.16 billion, or $3.39 per share (diluted), 17 and 22 percent increases, respectively, from $4.40 billion, or $2.77 per share, a year ago.

Second Quarter Financial highlights (compared to a year earlier)

• Return on assets grew to 1.42 percent.

• Mortgage originations reached a record $40 billion.

• Mortgage banking, card and investment banking all achieved record revenue:

- Card income increased 23 percent to $762 million.

- Mortgage banking income increased 305 percent to $559 million.

- Investment banking income increased 5 percent to $488 million.

• Net loan charge-offs hit a two-year low of $772 million.

• Marsico Capital Management increased its assets under management 49 percent to $20.8 billion on strong inflows amid solid performance.

• The consumer and commercial bank’s efficiency ratio dropped to 47 percent.

Customer highlights (compared to a year earlier)

• The number of customers expressing the highest level of satisfaction with the company increased 14 percent. This equates to an increase of 1.5 million customers being highly satisfied with their banking experience. These customers are more likely to expand their relationships and refer others to the bank. In addition:

• Checking account satisfaction increased 9 percent.

• Small-business satisfaction with the bank increased 7 percent.

• Online banking satisfaction increased 6 percent.

• Problem incidence decreased 9 percent.

• The company closed the quarter with 74 percent of its mutual fund assets in the top two Lipper quartiles for investment performance over three years.

• Product sales in the banking centers increased 32 percent.

Page 3

• In the first half of the year, the company’s market share in the US equities and equity-related securities business increased to 7.5 percent from 2.9 percent in the same time-period a year ago. Mortgage-backed securities’ market share increased to 8.5 percent from 5.5 percent.

• The company is on target to reach its goal of increasing consumer checking accounts by one million this year. Year to date, the company has opened 560,000 net new accounts as consumers continue to be attracted to the My Access Checking^™ product.

Revenue

Revenue grew 12 percent from the previous year to $9.78 billion on a fully-taxable equivalent basis.

Net interest income increased 5 percent to $5.52 billion on a fully-taxable equivalent basis, driven by consumer loan growth, and by higher mortgage warehouse levels, core funding levels, discretionary portfolios levels, and trading-related assets. These factors were partially offset by the impact of lower interest rates and declines in various loan portfolios.

Net interest yield declined 42 basis points to 3.33 percent. Half of the decline was due to asset growth supporting the initiative to increase distribution to Global Corporate & Investment Bank customers.

Noninterest income increased 22 percent to $4.26 billion. Strong refinance levels continued to drive higher mortgage banking income results. Card income rose as a result of an increase in transaction volume. Investment banking income rose as a result of strong securities underwriting. Total service charges increased 6 percent.

Other income was up due primarily to $282 million in gains on residential loan sales taken to reduce prepayment risk.

During the quarter, the company realized $296 million in net securities gains as the discretionary portfolio was repositioned in line with market conditions.

Efficiency

Expenses increased 13 percent from a year ago to $5.06 billion. This growth was driven by the development and launch of several new marketing campaigns, an increase in employee incentives and benefits costs and an increase in litigation reserves. This quarter, the company also recorded a pre-tax impact of $32 million related to expensing employee stock options. The efficiency ratio was 51.73 percent.

Page 4

Credit quality

Credit losses declined from the prior quarter and year and were at their lowest level since first quarter 2001. While there were significant declines in loan losses, the company continues to remain cautious about the large corporate portfolio. The middle market and consumer portfolios remain stable. Managed consumer credit card losses increased, reflecting the growth and seasoning of the portfolio as well as the impact of the economy.

• Provision for credit losses was $772 million, down 7 percent from $833 million in the first quarter and down 13 percent from $888 million a year earlier.

• Net charge-offs were also $772 million, or 0.88 percent of loans and leases, down from $833 million, or 0.98 percent, in the first quarter and down from $888 million, or 1.06 percent, a year earlier.

• Nonperforming assets were $4.43 billion, or 1.23 percent of loans, leases and foreclosed properties as of June 30, 2003. This was down 12 percent from the first quarter and down 10 percent from $4.94 billion a year earlier.

• The allowance for credit losses, at $6.84 billion or 1.90 percent of loans and leases, was virtually unchanged from both the first quarter and the prior year. As of June 30, 2003, the allowance for credit losses represented 163 percent of nonperforming loans, up from 143 percent in the first quarter and 148 percent a year earlier.

Capital management

Total shareholders’ equity was $51.0 billion at June 30, 2003, up 7 percent from a year ago and represented 7 percent of period-end assets of $769 billion. The preliminary Tier 1 Capital Ratio was 8.08 percent, a decrease of 1 basis point from a year ago and 12 basis points from the March 31, 2003 level.

During the quarter, Bank of America issued 29 million shares related to employee options and stock ownership plans, and repurchased 30 million shares. Average common shares outstanding were 1.49 billion in the second quarter, down 3 percent from 1.53 billion a year earlier.

Page 5

Consumer and Commercial Banking

Consumer and Commercial Banking (CCB) earnings rose 18 percent from a year ago, to $1.87 billion. Total revenue grew 15 percent to $6.59 billion while noninterest expense was up 12 percent, driven primarily by volume-related expenses in mortgage banking. Return on equity was 39 percent and SVA grew $325 million to $1.38 billion.

Improved results reflected the ongoing strength of the consumer and middle market businesses. Mortgage originations reached a record $40 billion. Credit and debit card purchase volumes increased 9 and 19 percent, respectively, and managed outstandings increased 11 percent. Checking, credit card and debit card accounts also increased.

Noninterest income was up 30 percent to $2.62 billion, driven by higher mortgage banking income, card income and consumer service charges. It was also driven by a 38 percent increase in middle market investment banking income.

Net interest income increased 7 percent to $3.97 billion. Average loans grew 3 percent. Consumer loans grew 6 percent as customers continued to take advantage of the interest rate environment for home equity lines and automobile loans, while credit card increased due to higher outstandings related to growth in new accounts. This was partially offset by a 2 percent decline in the commercial loan portfolio. However, the commercial portfolio grew from the first quarter, as did commercial deposits.

Global Corporate and Investment Banking

Global Corporate and Investment Banking (GCIB) earned $440 million, down 14 percent from a year ago. Revenue decreased 2 percent to $2.26 billion while expenses increased 10 percent. Return on equity was 18 percent and SVA decreased $8 million to $175 million.

The quarter was marked by the strength of the core debt business as investment banking and high yield, high grade and mortgage-backed securities trading continued to show strong results. In addition, there was a significant decline in credit costs. These trends were offset by markdowns of values on credit derivatives and losses in the commodities market.

Investment banking income increased 4 percent to $462 million from last year. The increase in fees was led by the strong demand for fixed income and equities. Total trading-related revenue in GCIB, which includes trading-related net interest income and trading fees, was $661 million, down 12 percent from last year due to mark to market losses on credit derivatives used to manage exposures in the large corporate loan portfolio.

Net interest income was up 4 percent to $1.20 billion from a year ago, primarily driven by the growth in trading assets as the company focuses on the investor/client sector. Period-end corporate loans and leases in the quarter were $46.6 billion, down from $61.7 billion a year earlier.

Page 6

Asset Management

Asset Management net income rose 118 percent from a year ago to $144 million primarily as a result of lower provision expense. Despite more than 10% declines in average market indices, overall revenue decreased only 2 percent to $612 million. Expenses increased 2 percent, reflecting the increase in distribution capabilities over the last five quarters. Return on equity was 21 percent and SVA increased $72 million to $70 million.

Assets under management increased 7 percent to $315 billion, even as the S&P 500 dropped 2 percent, led by increases in money market and other short-term funds. Balances in equity funds grew 6 percent from a year earlier, led by the strong performance of the Marsico funds.

Continuing to focus on expanding distribution capabilities, Asset Management is on target to increase its number of financial advisors by approximately 20 percent again this year. Additionally, the business has rolled out the advice-focused High Net Worth client service model in 23 markets and will complete the rollout to all markets later this year.

Equity Investments

Equity Investments reported a loss of $28 million, compared to a loss of $55 million a year ago. Principal Investing reported cash gains of $87 million and $41 million in mark-to-market adjustments in the second quarter offset by $107 million in impairments.

Note: James H. Hance, Jr., vice chairman and chief financial officer, will discuss second quarter results in a conference call at 9:30 a.m. (Eastern Time) today. The call can be accessed via a webcast available on the Bank of America Web site at http://www.bankofamerica.com/investor/.

One of the world’s leading financial services companies, Bank of America is committed to making banking work for customers and clients like it never has before. Bank of America provides individuals, small businesses and commercial, corporate and institutional clients across the United States and around the world new and better ways to manage their financial lives.

Shares of Bank of America (ticker: BAC), the second largest banking company in the United States by market capitalization, are listed on the New York, Pacific and London stock exchanges. The company’s Web site is www.bankofamerica.com. News, speeches and other corporate information can be found at www.bankofamerica.com/newsroom.

Additional financial tables are available at www.bankofamerica.com/investor/.

Forward-Looking Statements

This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions and related actions by the United States military abroad may adversely affect the company’s businesses and economic conditions as a whole; 4) changes in the interest rate environment reduce interest margins and impact funding sources; 5) changes in foreign exchange rates increases exposure; 6) changes in market rates and prices may adversely impact the value of financial products and assets; 7) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 8) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; and 9) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at www.sec.gov.

###

7

Bank of America

(Dollars in millions, except per share data; shares in thousands)

	Three Months Ended June 30						Six Months Ended June 30
	2003			2002			2003			2002
Financial Summary
Earnings	$	2,738		$	2,221		$	5,162		$	4,400
Earnings per common share		1.83			1.45			3.45			2.86
Diluted earnings per common share		1.80			1.40			3.39			2.77
Dividends per common share		0.64			0.60			1.28			1.20
Closing market price per common share		79.03			70.36			79.03			70.36
Average common shares issued and outstanding		1,494,094			1,533,783			1,496,827			1,538,600
Average diluted common shares issued and outstanding		1,523,306			1,592,250			1,524,715			1,586,836
Summary Income Statement
Net interest income	$	5,365		$	5,094		$	10,574		$	10,247
Noninterest income		4,255			3,481			7,940			6,921
Total revenue		9,620			8,575			18,514			17,168
Provision for credit losses		772			888			1,605			1,728
Gains on sales of securities		296			93			569			137
Noninterest expense		5,058			4,490			9,775			8,984
Income before income taxes		4,086			3,290			7,703			6,593
Income tax expense		1,348			1,069			2,541			2,193
Net income	$	2,738		$	2,221		$	5,162		$	4,400
Summary Average Balance Sheet
Loans and leases	$	350,279		$	335,684		$	347,983		$	331,765
Securities		95,614			67,291			81,776			70,399
Earning assets		663,500			562,192			638,435			555,688
Total assets		774,644			646,599			744,141			642,163
Deposits		405,307			365,986			395,587			365,198
Shareholders’ equity		50,269			48,274			49,837			47,867
Common shareholders’ equity		50,212			48,213			49,780			47,805
Performance Indices
Return on average assets		1.42	%		1.38	%		1.40	%		1.38
Return on average common shareholders’ equity		21.86			18.47			20.90			18.55
Credit Quality
Net Charge-offs	$	772		$	888		$	1,605		$	1,728
% of average loans and leases		0.88	%		1.06	%		0.93	%		1.05
Managed bankcard net charge-offs as a % of average managed bankcard receivables		5.74			5.59			5.50			5.51
	At June 30
	2003			2002
Balance Sheet Highlights
Loans and leases	$	360,305		$	340,394
Securities		114,529			83,163
Earning assets		655,684			552,416
Total assets		769,179			638,448
Deposits		421,935			360,769
Shareholders’ equity		51,016			47,764
Common shareholders’ equity		50,960			47,704
Book value per share		34.06			31.47
Total equity to assets ratio (period end)		6.63	%		7.48	%
Risk-based capital ratios:(1)
Tier 1		8.08			8.09
Total		11.95			12.42
Leverage ratio		5.93			6.47
Period-end common shares issued and outstanding		1,496,314			1,515,667
Allowance for credit losses	$	6,841		$	6,873
Allowance for credit losses as a % of loans and leases		1.90	%		2.02	%
Allowance for credit losses as a % of nonperforming loans		163			148
Nonperforming loans	$	4,187		$	4,642
Nonperforming assets		4,430			4,939
Nonperforming assets as a % of:
Total assets		0.58	%		0.77	%
Loans, leases and foreclosed properties		1.23			1.45
Nonperforming loans as a % of loans and leases		1.16			1.36
Other Data
Full-time equivalent employees		132,796			135,489
Number of banking centers		4,200			4,232
Number of ATM’s		13,250			12,827

⁽¹⁾ 2003 ratios are preliminary.

	Consumer and Commercial Banking			Asset Management			Global Corporate and Investment Banking			Equity Investments			Corporate Other
BUSINESS SEGMENT RESULTS
Three months ended June 30, 2003
Total revenue	$	6,590		$	612		$	2,262		$	(12	)	$	327
Net income		1,871			144			440			(28	)		311
Shareholder value added		1,381			70			175			(84	)		(128	)
Return on average equity		38.5	%		21.1	%		17.8	%		(5.5	)%		n/m
Average loans and leases	$	187,811		$	22,866		$	51,285		$	414		$	87,903
Three months ended June 30, 2002
Total revenue	$	5,723		$	622		$	2,306		$	(84	)	$	176
Net Income		1,587			66			509			(55	)		114
Shareholder value added		1,056			(2	)		183			(120	)		(283	)
Return on average equity		33.1	%		11.4	%		18.3	%		(10.1	)%		n/m
Average loans and leases	$	182,012		$	24,308		$	64,114		$	448		$	64,802
n/m = not meaningful
	Three Months Ended June 30						Six Months Ended June 30
	2003			2002			2003			2002
SUPPLEMENTAL FINANCIAL DATA
Taxable-equivalent basis data
Net interest income	$	5,524		$	5,262		$	10,885		$	10,509
Total revenue		9,779			8,743			18,825			17,430
Net interest yield		3.33	%		3.75	%		3.42	%		3.80	%
Efficiency Ratio		51.73			51.34			51.93			51.54
Reconciliation of net income to shareholder value added
Net income	$	2,738		$	2,221		$	5,162		$	4,400
Amortization expense		54			55			108			110
Capital charge		(1,378	)		(1,442	)		(2,716	)		(2,844	)
Shareholder value added	$	1,414		$	834		$	2,554		$	1,666

EX-99.2

Exhibit 99.2

Supplemental Information

Second Quarter 2003

July 14, 2003

This information is preliminary and based on company data available at the time of the presentation. It speaks only as of the particular date or dates included in the accompanying pages. Bank of America does not undertake an obligation to, and disclaims any duty to, correct or update any of the information provided. Any forward-looking statements in this information are subject to the forward-looking language contained in Bank of America’s reports filed with the SEC pursuant to the Securities Exchange Act of 1934, which are available at the SEC’s website (www.sec.gov) or at Bank of America’s website (www.bankofamerica.com). Bank of America’s future financial performance is subject to risks and uncertainties as described in its SEC filings.

Bank of America Corporation

Results Overview

l Diluted EPS of $1.80, up 13% and 29% over 1Q03 and 2Q02, respectively.

l Total revenue rose 8% over 1Q03 and 12% over 2Q02.

l Consumer and Commercial Banking segment revenue rose 9% over 1Q03 and 15% over 2Q02 led by record quarters in card services and consumer real estate.

l Consumer loans grew 17% while deposit levels rose 9% over the second quarter 2002.

l Added 560,000 net new checking accounts in first half of 2003 versus 528,000 for full year of 2002.

l Customer satisfaction for Top 2 box scores of most delighted customers rose 14% over year ago.

l Banking center product sales increased 32% in the past year.

l Asset Management segment growth over 1st quarter levels fueled by 26% growth in sales by Marsico.

l Record quarter in investment banking driven by strong debt issuance as well as market share gains in equities and equity linked securities.

l Net charge-offs were down 7% from 1Q03 and 13% from a year earlier.

l Nonperforming asset levels declined 12% from March 2003 driven by declines in large corporate and commercial levels.

l Beginning in September, our quarterly dividend will increase 25% to $0.80 per common share.

1

Bank of America Corporation

Consolidated Financial Highlights

(Dollars in millions, except per share information; shares in thousands)

	Year-to-   Date 2003			Year-to-   Date 2002			Second Quarter 2003			First Quarter 2003			Fourth Quarter 2002			Third Quarter 2002			Second Quarter 2002
Income statement
Total revenue	$	18,514		$	17,168		$	9,620		$	8,894		$	8,804		$	8,522		$	8,575
Provision for credit losses		1,605			1,728			772			833			1,165			804			888
Gains on sales of securities		569			137			296			273			304			189			93
Noninterest expense		9,775			8,984			5,058			4,717			4,832			4,620			4,490
Income tax expense		2,541			2,193			1,348			1,193			497			1,052			1,069
Net income		5,162			4,400			2,738			2,424			2,614			2,235			2,221
Diluted earnings per common share		3.39			2.77			1.80			1.59			1.69			1.45			1.40
Average diluted common shares outstanding		1,524,715			1,586,836			1,523,306			1,526,288			1,542,482			1,546,347			1,592,250
Dividends paid per common share	$	1.28		$	1.20		$	0.64		$	0.64		$	0.64		$	0.60		$	0.60
Performance ratios
Return on average assets		1.40	%		1.38	%		1.42	%		1.38	%		1.49	%		1.33	%		1.38	%
Return on average common shareholders’ equity		20.90			18.55			21.86			19.92			21.58			19.02			18.47
Book value per share of common stock	$	34.06		$	31.47		$	34.06		$	33.38		$	33.49		$	32.07		$	31.47
Market price per share of common stock:
High for the period	$	80.00		$	77.08		$	80.00		$	72.50		$	71.99		$	71.94		$	77.08
Low for the period		64.26			57.51			67.20			64.26			53.98			57.90			66.82
Closing price		79.03			70.36			79.03			66.84			69.57			63.80			70.36
Market capitalization		118,254			106,642			118,254			100,095			104,403			95,838			106,642
Number of banking centers		4,200			4,232			4,200			4,202			4,208			4,226			4,232
Number of ATM’s		13,250			12,827			13,250			13,266			13,013			12,489			12,827
Full-time equivalent employees		132,796			135,489			132,796			132,583			133,944			134,135			135,489

Certain prior period amounts have been reclassified to conform to current period presentation.

2

Bank of America Corporation

Supplemental Financial Highlights

(Dollars in millions)

Taxable-equivalent basis data

	Year-to-   Date 2003			Year-to-   Date 2002			Second Quarter 2003			First Quarter 2003			Fourth Quarter 2002			Third Quarter 2002			Second Quarter 2002
Net interest income	$	10,885		$	10,509		$	5,524		$	5,361		$	5,537		$	5,465		$	5,262
Total revenue		18,825			17,430			9,779			9,046			8,967			8,685			8,743
Net interest yield		3.42	%		3.80	%		3.33	%		3.52	%		3.66	%		3.75	%		3.75	%
Efficiency ratio		51.93			51.54			51.73			52.14			53.90			53.19			51.34

Reconciliation to GAAP Financial Measures

Shareholder value added (SVA) is a performance measure used in managing the corporation’s growth strategy and is not defined in GAAP (generally accepted accounting principles). Management believes that this measure provides users of this financial information with a more accurate picture of returns on capital used in operating the business for comparative purposes. Other companies may define or calculate supplemental financial data differently. See the Table below for supplemental financial data and corresponding reconciliations to GAAP financial measures for the six months ended June 30, 2003 and 2002, and the three months ended June 30, 2003, March 31, 2003, December 31, 2002, September 30, 2002 and June 30, 2002.

Reconciliation of net income to

shareholder value added

	Year-to-   Date 2003			Year-to-   Date 2002			Second Quarter 2003			First Quarter 2003			Fourth Quarter 2002			Third Quarter 2002			Second Quarter 2002
Net income	$	5,162		$	4,400		$	2,738		$	2,424		$	2,614		$	2,235		$	2,221
Amortization expense		108			110			54			54			54			54			55
Capital charge		(2,716	)		(2,844	)		(1,378	)		(1,338	)		(1,454	)		(1,409	)		(1,442	)
Shareholder value added	$	2,554		$	1,666		$	1,414		$	1,140		$	1,214		$	880		$	834

Certain prior period amounts have been reclassified to conform to current period presentation.

3

Bank of America Corporation

Consolidated Statement of Income

(Dollars in millions, except per share information; shares in thousands)

	Year-to- Date 2003			Year-to- Date 2002			Second Quarter 2003		First Quarter 2003			Fourth Quarter 2002			Third Quarter 2002			Second Quarter 2002
Interest income
Interest and fees on loans and leases	$	10,760		$	10,975		$	5,412	$	5,348		$	5,502		$	5,553		$	5,530
Interest and dividends on securities		1,789			1,870			1,011		778			1,061			1,104			924
Federal funds sold and securities purchased under agreements to resell		387			485			193		194			208			177			270
Trading account assets		2,049			1,826			1,007		1,042			979			1,006			948
Other interest income		735			699			372		363			371			345			312
Total interest income		15,720			15,855			7,995		7,725			8,121			8,185			7,984
Interest expense
Deposits		2,452			2,728			1,269		1,183			1,292			1,414			1,384
Short-term borrowings		967			1,006			514		453			557			526			529
Trading account liabilities		624			629			316		308			289			342			344
Long-term debt		1,103			1,245			531		572			609			601			633
Total interest expense		5,146			5,608			2,630		2,516			2,747			2,883			2,890
Net interest income		10,574			10,247			5,365		5,209			5,374			5,302			5,094
Noninterest income
Consumer service charges		1,570			1,426			793		777			802			761			732
Corporate service charges		1,154			1,132			577		577			571			586			566
Total service charges		2,724			2,558			1,370		1,354			1,373			1,347			1,298
Consumer investment and brokerage services		779			801			401		378			370			373			420
Corporate investment and brokerage services		369			348			204		165			171			174			178
Total investment and brokerage services		1,148			1,149			605		543			541			547			598
Mortgage banking income		964			327			559		405			209			220			138
Investment banking income		866			805			488		378			422			318			464
Equity investment gains (losses)		(25	)		(10	)		43		(68	)		(54	)		(216	)		(36	)
Card income		1,443			1,196			762		681			736			686			621
Trading account profits		207			608			93		114			99			71			263
Other income		613			288			335		278			104			247			135
Total noninterest income		7,940			6,921			4,255		3,685			3,430			3,220			3,481
Total revenue		18,514			17,168			9,620		8,894			8,804			8,522			8,575
Provision for credit losses		1,605			1,728			772		833			1,165			804			888
Gains on sales of securities		569			137			296		273			304			189			93
Noninterest expense
Personnel		5,154			4,832			2,695		2,459			2,482			2,368			2,386
Occupancy		970			873			498		472			450			457			441
Equipment		537			541			253		284			292			291			279
Marketing		468			340			238		230			203			210			170
Professional fees		406			213			281		125			186			126			122
Amortization of intangibles		108			110			54		54			54			54			55
Data processing		528			431			262		266			291			295			226
Telecommunications		261			242			137		124			120			119			123
Other general operating		1,343			1,402			640		703			754			700			688
Total noninterest expense		9,775			8,984			5,058		4,717			4,832			4,620			4,490
Income before income taxes		7,703			6,593			4,086		3,617			3,111			3,287			3,290
Income tax expense		2,541			2,193			1,348		1,193			497			1,052			1,069
Net income	$	5,162		$	4,400		$	2,738	$	2,424		$	2,614		$	2,235		$	2,221
Net income available to common shareholders	$	5,160		$	4,398		$	2,737	$	2,423		$	2,613		$	2,233		$	2,220
Per common share information
Earnings	$	3.45		$	2.86		$	1.83	$	1.62		$	1.74		$	1.49		$	1.45
Diluted earnings	$	3.39		$	2.77		$	1.80	$	1.59		$	1.69		$	1.45		$	1.40
Dividends paid	$	1.28		$	1.20		$	0.64	$	0.64		$	0.64		$	0.60		$	0.60
Average common shares issued and outstanding		1,496,827			1,538,600			1,494,094		1,499,405			1,499,557			1,504,017			1,533,783
Average diluted common shares issued and outstanding		1,524,715			1,586,836			1,523,306		1,526,288			1,542,482			1,546,347			1,592,250

Certain prior period amounts have been reclassified to conform to current period presentation.

4

Bank of America Corporation

Consolidated Balance Sheet

(Dollars in millions)

	June 30 2003			March 31 2003			June 30 2002
Assets
Cash and cash equivalents	$	25,220		$	25,069		$	21,309
Time deposits placed and other short-term investments		6,790			5,523			6,307
Federal funds sold and securities purchased under agreements to resell		64,314			49,809			35,449
Trading account assets		66,947			65,733			63,466
Derivative assets		38,587			35,409			24,809
Securities:
Available-for-sale		114,250			75,511			82,143
Held-to-maturity		279			927			1,020
Total securities		114,529			76,438			83,163
Loans and leases		360,305			343,412			340,394
Allowance for credit losses		(6,841	)		(6,853	)		(6,873	)
Loans and leases, net of allowance for credit losses		353,464			336,559			333,521
Premises and equipment, net		5,899			6,643			6,755
Mortgage banking assets		1,748			1,995			3,404
Goodwill		11,426			11,396			10,950
Core deposit intangibles and other intangibles		1,010			1,065			1,184
Other assets		79,245			64,126			48,131
Total assets	$	769,179		$	679,765		$	638,448
Liabilities
Deposits in domestic offices:
Noninterest-bearing	$	132,851		$	121,127		$	101,163
Interest-bearing		256,602			242,287			224,582
Deposits in foreign offices:
Noninterest-bearing		2,206			2,331			1,750
Interest-bearing		30,276			29,431			33,274
Total deposits		421,935			395,176			360,769
Federal funds purchased and securities sold under agreements to repurchase		104,821			72,976			56,678
Trading account liabilities		27,708			23,578			25,751
Derivative liabilities		23,435			22,876			17,800
Commercial paper and other short-term borrowings		43,584			29,729			32,973
Accrued expenses and other liabilities		28,943			15,905			32,002
Long-term debt		61,681			63,442			59,181
Trust preferred securities		6,056			6,031			5,530
Total liabilities		718,163			629,713			590,684
Shareholders’ equity
Preferred stock, $0.01 par value; authorized—100,000,000 shares; issued and outstanding 1,306,463; 1,336,200; and 1,411,750 shares		56			57			60
Common stock, $0.01 par value; authorized—5,000,000,000 shares; issued and outstanding 1,496,314,280; 1,497,530,740; and 1,515,667,160 shares		15			127			1,499
Retained earnings		51,374			49,978			45,546
Accumulated other comprehensive income (loss)		(251	)		74			660
Other		(178	)		(184	)		(1	)
Total shareholders’ equity		51,016			50,052			47,764
Total liabilities and shareholders’ equity	$	769,179		$	679,765		$	638,448

5

Bank of America Corporation

Capital Management

(Dollars in millions)

	2Q02			3Q02			4Q02			1Q03			2Q03*
Tier 1 capital	$	41,097		$	41,732		$	43,105		$	43,818		$	45,192
Total capital		63,108			63,505			65,169			65,688			66,863
Risk-weighted assets		508,008			513,085			524,175			534,378			559,324
Tier 1 capital ratio		8.09	%		8.13	%		8.22	%		8.20	%		8.08	%
Total capital ratio		12.42			12.38			12.43			12.29			11.95
Ending equity / ending assets		7.48			7.31			7.62			7.36			6.63
Ending capital / ending assets		8.35			8.22			8.53			8.25			7.42
Average equity / average assets		7.47			6.97			6.91			6.92			6.49

*Preliminary data on risk based capital

Share Repurchase Program

30 million common shares were repurchased in the second quarter of 2003 as a part of ongoing share repurchase programs.

105 million shares remain outstanding under the current authorized program (104 million net of outstanding put options).

29 million shares were issued in the second quarter of 2003, mostly due to stock incentive plans.

6

Bank of America Corporation

Average Balances and Interest Rates—Taxable-Equivalent Basis

(Dollars in millions)

	Second Quarter 2003						First Quarter 2003						Second Quarter 2002
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments	$	7,888	$	39	1.99	%	$	6,987	$	43	2.49	%	$	10,673	$	63	2.37	%
Federal funds sold and securities purchased under agreements to resell		70,054		194	1.11			57,873		194	1.35			48,426		270	2.23
Trading account assets		99,129		1,022	4.13			99,085		1,053	4.27			78,113		961	4.93
Securities		95,614		1,028	4.30			67,784		793	4.69			67,291		939	5.59
Loans and leases(1):
Commercial—domestic		100,721		1,746	6.95			103,663		1,836	7.18			111,522		1,887	6.78
Commercial—foreign		18,004		170	3.79			18,876		156	3.35			21,454		212	3.97
Commercial real estate—domestic		20,039		218	4.36			19,955		215	4.37			21,486		258	4.83
Commercial real estate—foreign		305		3	3.95			301		3	3.88			393		5	5.14
Total commercial		139,069		2,137	6.16			142,795		2,210	6.27			154,855		2,362	6.12
Residential mortgage		120,754		1,703	5.64			113,695		1,582	5.59			94,726		1,602	6.77
Home equity lines		22,763		263	4.64			23,054		267	4.70			22,579		305	5.41
Direct/Indirect consumer		32,248		495	6.17			31,393		503	6.49			30,021		542	7.25
Consumer finance		7,244		137	7.58			8,012		154	7.76			11,053		226	8.20
Credit card		26,211		690	10.56			24,684		644	10.57			20,402		510	10.01
Foreign consumer		1,990		17	3.47			2,029		17	3.45			2,048		19	3.71
Total consumer		211,210		3,305	6.27			202,867		3,167	6.30			180,829		3,204	7.10
Total loans and leases		350,279		5,442	6.23			345,662		5,377	6.29			335,684		5,566	6.65
Other earning assets		40,536		429	4.24			35,701		417	4.71			22,005		353	6.42
Total earning assets(2)		663,500		8,154	4.92			613,092		7,877	5.18			562,192		8,152	5.81
Cash and cash equivalents		23,203						21,699						21,200
Other assets, less allowance for credit losses		87,941						78,508						63,207
Total assets	$	774,644					$	713,299					$	646,599
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	24,420	$	35	0.58	%	$	22,916	$	34	0.59	%	$	21,841	$	34	0.64	%
NOW and money market deposit accounts		146,284		295	0.81			142,338		291	0.83			129,856		346	1.07
Consumer CDs and IRAs		69,506		742	4.28			66,937		695	4.21			68,015		764	4.51
Negotiable CDs, public funds and other time deposits		12,912		45	1.41			3,598		16	1.78			4,635		30	2.43
Total domestic interest-bearing deposits		253,122		1,117	1.77			235,789		1,036	1.78			224,347		1,174	2.10
Foreign interest-bearing deposits(3):
Banks located in foreign countries		16,150		87	2.16			14,218		80	2.27			14,048		108	3.10
Governments and official institutions		2,392		8	1.42			1,785		6	1.31			2,449		12	1.89
Time, savings, and other		19,209		57	1.18			18,071		61	1.38			18,860		90	1.91
Total foreign interest-bearing deposits		37,751		152	1.61			34,074		147	1.75			35,357		210	2.38
Total interest-bearing deposits		290,873		1,269	1.75			269,863		1,183	1.78			259,704		1,384	2.14
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		152,722		514	1.35			123,041		453	1.49			97,579		529	2.17
Trading account liabilities		38,610		316	3.28			34,858		308	3.58			31,841		344	4.34
Long-term debt and trust preferred securities		68,927		531	3.08			67,399		572	3.40			65,940		633	3.84
Total interest-bearing liabilities(2)		551,132		2,630	1.91			495,161		2,516	2.05			455,064		2,890	2.55
Noninterest-bearing sources:
Noninterest-bearing deposits		114,434						115,897						106,282
Other liabilities		58,809						52,841						36,979
Shareholders’ equity		50,269						49,400						48,274
Total liabilities and shareholders’ equity	$	774,644					$	713,299					$	646,599
Net interest spread					3.01						3.13						3.26
Impact of noninterest-bearing sources					0.32						0.39						.49
Net interest income/yield on earning assets			$	5,524	3.33	%			$	5,361	3.52	%			$	5,262	3.75	%

(1) Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis.

(2) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $587 and $576 in the second and first quarters of 2003 and $509 in the second quarter of 2002, respectively. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $28 and $46 in the second and first quarters of 2003 and $65 in the second quarter of 2002, respectively. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities.

(3) Primarily consists of time deposits in denominations of $100,000 or more.

7

Bank of America Corporation

Average Balances and Interest Rates—Tax-Equivalent Basis

(Dollars in millions)

	Six Months Ended
	June 30, 2003						June 30, 2002
	Average Balance		Interest Income/ Expense		Yield/ Rate		Average Balance		Interest Income/ Expense		Yield/ Rate
Earning assets
Time deposits placed and other short-term investments	$	7,440	$	82	2.22	%	$	10,459	$	124	2.40	%
Federal funds sold and securities purchased under
agreements to resell		63,997		388	1.22			46,564		485	2.09
Trading account assets		99,107		2,075	4.20			74,384		1,849	4.99
Securities		81,776		1,821	4.45			70,399		1,902	5.41
Loans and leases(1):
Commercial—domestic		102,184		3,581	7.07			113,829		3,865	6.84
Commercial—foreign		18,437		327	3.57			21,684		438	4.07
Commercial real estate—domestic		19,997		433	4.36			21,866		533	4.92
Commercial real estate—foreign		303		6	3.92			391		9	4.57
Total commercial		140,921		4,347	6.22			157,770		4,845	6.19
Residential mortgage		117,243		3,285	5.62			87,953		2,991	6.82
Home equity lines		22,908		531	4.67			22,296		599	5.42
Direct/Indirect consumer		31,824		998	6.32			30,191		1,092	7.30
Consumer finance		7,626		291	7.67			11,590		481	8.34
Credit card		25,452		1,333	10.57			19,895		1,000	10.13
Foreign consumer		2,009		34	3.46			2,070		38	3.71
Total consumer		207,062		6,472	6.28			173,995		6,201	7.17
Total loans and leases		347,983		10,819	6.26			331,765		11,046	6.70
Other earning assets		38,132		846	4.46			22,117		711	6.47
Total earning assets(2)		638,435		16,031	5.05			555,688		16,117	5.83
Cash and cash equivalents		22,455						21,616
Other assets, less allowance for credit losses		83,251						64,859
Total assets	$	744,141					$	642,163
Interest-bearing liabilities
Domestic interest-bearing deposits:
Savings	$	23,672	$	69	0.59	%	$	21,281	$	67	0.64	%
NOW and money market deposit accounts		144,322		586	0.82			128,544		681	1.07
Consumer CDs and IRAs		68,228		1,437	4.25			68,683		1,494	4.39
Negotiable CDs, public funds and other time deposits		8,281		61	1.49			4,654		62	2.63
Total domestic interest-bearing deposits		244,503		2,153	1.78			223,162		2,304	2.08
Foreign interest-bearing deposits(3):
Banks located in foreign countries		15,189		167	2.21			14,752		215	2.94
Governments and official institutions		2,090		14	1.37			2,675		26	1.93
Time, savings, and other		18,643		118	1.27			19,238		183	1.92
Total foreign interest-bearing deposits		35,922		299	1.68			36,665		424	2.33
Total interest-bearing deposits		280,425		2,452	1.76			259,827		2,728	2.12
Federal funds purchased, securities sold under agreements to repurchase and other short-term borrowings		137,964		967	1.41			92,255		1,006	2.20
Trading account liabilities		36,745		624	3.42			31,455		629	4.03
Long-term debt and trust preferred securities		68,167		1,103	3.24			66,812		1,245	3.73
Total interest-bearing liabilities(2)		523,301		5,146	1.98			450,349		5,608	2.51
Noninterest-bearing sources:
Noninterest-bearing deposits		115,162						105,371
Other liabilities		55,841						38,576
Shareholders’ equity		49,837						47,867
Total liabilities and shareholders’ equity	$	744,141					$	642,163
Net interest spread					3.07						3.32
Impact of noninterest-bearing sources					0.35						0.48
Net interest income/yield on earning assets			$	10,885	3.42	%			$	10,509	3.80	%

(1) Nonperforming loans are included in the respective average loan balances. Income on such nonperforming loans is recognized on a cash basis.

(2) Interest income includes the impact of interest rate risk management contracts, which increased interest income on the underlying assets $1,163 and $1,065 in the six months ended June 30, 2003 and 2002, respectively. These amounts were substantially offset by corresponding decreases in the income earned on the underlying assets. Interest expense includes the impact of interest rate risk management contracts, which increased interest expense on the underlying liabilities $74 and $10 in the six months ended June 30, 2003 and 2002, respectively. These amounts were substantially offset by corresponding decreases in the interest paid on the underlying liabilities.

(3) Primarily consists of time deposits in denominations of $100,000 or more.

8

9

Bank of America Corporation

Consumer and Commercial Banking Segment Results

(Dollars in millions)

	Year-to-Date						Quarterly
	2003			2002			2 Qtr 03			1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02
Key Measures
Total revenue*	$	12,623		$	11,373		$	6,590		$	6,033		$	6,192		$	6,051		$	5,723
Provision for credit losses		1,010			875			522			488			510			420			449
Net income		3,462			3,144			1,871			1,591			1,721			1,678			1,587
Shareholder value added		2,480			2,080			1,381			1,099			1,168			1,144			1,056
Return on average equity		35.5	%		32.7	%		38.5	%		32.6	%		34.7	%		34.9	%		33.1	%
Efficiency ratio*		48.5			48.7			47.1			50.0			47.5			49.4			48.3
Selected Average Balance
Sheet Components
Total loans and leases	$	186,789		$	181,721		$	187,811		$	185,756		$	184,243		$	182,142		$	182,012
Total deposits		301,080			278,418			306,447			295,654			292,259			283,769			280,161
Total earning assets		330,535			277,077			339,030			321,945			314,605			286,249			279,024
Period End (in billions)
Mortgage servicing portfolio	$	249.6		$	287.8		$	249.6		$	257.2		$	264.5		$	278.7		$	287.8
Mortgage originations:
Retail		50.0			22.4			28.2			21.8			22.2			15.3			9.5
Wholesale		23.0			9.7			12.2			10.8			9.7			8.6			4.9

* Taxable-equivalent basis

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

10

Bank of America Corporation

E-Commerce & BankofAmerica.com

	Bank of America has the largest active online banking customer base with over 5.6 million subscribers. This represents an active customer penetration rate of 37%. Bank of America uses a strict Active User standard—customers must have used our online services within the last 90 days. 2.4 million active bill pay users paid over $10.9 billion worth of bills this quarter. The number of customers who sign up and use Bank of America Bill Pay Service continues to far surpass that of any other financial institution. Currently, 240 companies are presenting over 4.0 million e-bills per quarter.

11

Bank of America Corporation

Consumer Credit Card Results

Included within Consumer Products

(Dollars in millions)

	Year-to-Date						Quarterly
		2003			2002			2 Qtr 03			1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02
Key Measures
Outstandings:
Held (Period end)	$	27,419		$	21,155		$	27,419		$	24,819		$	24,729		$	23,062		$	21,155
Managed (Period end)		30,807			27,089			30,807			29,064			29,461			28,057			27,089
Held (Average)		25,452			19,895			26,211			24,684			23,535			22,263			20,402
Managed (Average)		29,568			26,721			29,970			29,161			28,406			27,540			26,902
Managed Income Statement:
Total revenue	$	2,008		$	1,633		$	1,043		$	965		$	943		$	895		$	806
Provision for credit losses		882			764			473			409			386			392			393
Noninterest expense		554			493			279			275			244			254			249
Income before income taxes		572			376			291			281			313			249			164
Shareholder Value Added	$	262		$	155		$	134		$	128		$	152		$	114		$	62
Credit Quality:
Held:
Charge-offs $	$	701		$	510		$	378		$	323		$	299		$	285		$	269
Charge-offs %		5.56	%		5.17	%		5.78	%		5.31	%		5.03	%		5.09	%		5.28	%
Managed:
Losses $	$	807		$	730		$	429		$	378		$	357		$	356		$	375
Losses %		5.50	%		5.51	%		5.74	%		5.25	%		4.99	%		5.13	%		5.59	%
Managed Delinquency %:
30+		3.99	%		3.78	%		3.99	%		4.18	%		3.94	%		3.63	%		3.78	%
90+		1.80			1.76			1.80			1.91			1.71			1.66			1.76

12

Bank of America Corporation

Global Corporate and Investment Banking Segment Results

(Dollars in millions)

	Year-to-Date						Quarterly
Key Measures	2003			2002			2 Qtr 03			1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02
Total revenue*	$	4,605		$	4,591		$	2,262		$	2,343		$	2,085		$	2,001		$	2,306
Provision for credit losses		444			481			172			272			524			203			216
Net income		921			967			440			481			206			385			509
Shareholder value added		378			306			175			203			(120	)		62			183
Return on average equity		18.2	%		17.1	%		17.8	%		18.6	%		7.4	%		14.0	%		18.3	%
Efficiency ratio*		59.6			56.6			62.7			56.5			60.4			60.5			56.2
Selected Average Balance Sheet Components
Total loans and leases	$	53,899		$	65,552		$	51,285		$	56,543		$	60,475		$	61,032		$	64,114
Total deposits		67,106			63,492			66,900			67,315			65,879			66,163			63,770
Total earning assets		229,654			197,004			233,125			226,145			207,767			203,537			201,401

* Taxable-equivalent basis

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

13

Bank of America Corporation

Global Corporate & Investment Banking Strategic Progress Continues

Source: Thomson Financial—First Half 2003

Significant US market share gains

Convertible debt market share more than doubled its market share year over year, from 4.3% to 8.7%.

The market share for common stock underwriting more than doubled from 2.0% in the first half of 2002 to 4.9% year to date.

Mortgage-backed securities increased from 5.5% to 8.5% year over year.

14

Bank of America Corporation

Asset Management Segment Results

(Dollars in millions)

	Year-to-Date						Quarterly
Key Measures	2003			2002			2 Qtr 03			1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02
Total revenue*	$	1,190		$	1,220		$	612		$	578		$	588		$	571		$	622
Provision for credit losses		(1	)		170			3			(4	)		30			118			143
Net income		284			203			144			140			108			63			66
Shareholder value added		136			67			70			66			26			(14	)		(2	)
Return on average equity		20.7	%		17.6	%		21.1	%		20.3	%		15.5	%		9.6	%		11.4	%
Efficiency ratio*		63.3			60.4			63.2			63.3			67.3			63.7			61.0
Selected Average Balance
Sheet Components
Total loans and leases	$	22,775		$	24,550		$	22,866		$	22,683		$	22,950		$	23,637		$	24,308
Total deposits		12,784			11,806			12,710			12,859			12,531			11,967			11,776
Total earning assets		23,601			25,175			23,784			23,415			23,693			24,238			24,907
Period End (in billions)
Assets under management	$	314.9		$	295.2		$	314.9		$	297.0		$	310.4		$	271.9		$	295.2
Client brokerage assets		90.6			90.5			90.6			90.8			90.9			87.1			90.5
Assets in custody		47.9			41.0			47.9			45.1			46.5			42.1			41.0
Total client assets	$	453.4		$	426.7		$	453.4		$	432.9		$	447.8		$	401.1		$	426.7

* Taxable-equivalent basis

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

15

Bank of America Corporation

Equity Investments Segment Results

(Dollars in millions)

	Year-to-Date						Quarterly
Key Measures	2003			2002			2 Qtr 03			1 Qtr 03			4 Qtr 02			3 Qtr 02			2 Qtr 02
Total revenue*	$	(119	)	$	(112	)	$	(12	)	$	(107	)	$	(100	)	$	(233	)	$	(84	)
Provision for credit losses		4			—			3			1			7			—			—
Net income		(114	)		(87	)		(28	)		(86	)		(83	)		(161	)		(55	)
Shareholder value added		(225	)		(215	)		(84	)		(141	)		(146	)		(223	)		(120	)
Return on average equity		(11.1	)%		(8.2	)%		(5.5	)%		(16.7	)%		(15.6	)%		(30.6	)%		(10.1	)%
Efficiency ratio*		(45.5	)		(32.3	)		n/m			(24.2	)		(27.5	)		(11.5	)		(10.5	)
Selected Average Balance
Sheet Components
Total loans and leases	$	424		$	437		$	414		$	434		$	438		$	446		$	448
Total earning assets		424			441			414			434			438			446			448
Period End
Investment balances for Principal Investing	$	5,436		$	5,429		$	5,436		$	5,435		$	5,395		$	5,429		$	5,429

* Taxable-equivalent basis

n/m = not meaningful

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

16

Bank of America Corporation

Corporate Other Results⁽¹⁾

(Dollars in millions)

	Year-to-Date						Quarterly
Key Measures	2003			2002			2 Qtr 03			1 Qtr 03			4 Qtr 02		3 Qtr 02			2 Qtr 02
Total revenue*	$	525		$	358		$	327		$	198		$	202	$	295		$	176
Provision for credit losses		148			202			72			76			94		63			80
Net income(2)		609			173			311			298			662		270			114
Shareholder value added		(215	)		(572	)		(128	)		(87	)		286		(89	)		(283	)
Selected Average Balance
Sheet Components
Total loans and leases	$	84,096		$	59,505		$	87,903		$	80,246		$	74,994	$	73,228		$	64,802
Total deposits		14,617			11,482			19,250			9,932			10,712		12,034			10,279
Total earning assets		180,128			135,535			199,028			161,018			171,269		158,047			138,771

* Taxable-equivalent basis

(1) Corporate Other consists primarily of gains and losses associated with managing the balance sheet of the Corporation, certain consumer finance and commercial lending businesses being liquidated, and certain residential mortgages originated by the mortgage group or otherwise acquired and held for asset/liability management purposes.

(2) The fourth quarter of 2002 includes $488 tax benefit related to the settlement of federal income tax returns through 1999.

Certain prior period amounts have been reclassified among the segments to conform to the current period presentation.

17

Bank of America Corporation

Net Charge-offs and Net Charge-off Ratios

(Dollars in millions)

	2Q02				3Q02				4Q02				1Q03					2Q03
	Amt.		Ratio		Amt.		Ratio		Amt.		Ratio		Amt.			Ratio		Amt.		Ratio
Commercial—domestic	$	383	1.38	%	$	240	0.90	%	$	478	1.80	%	$	239		0.94	%	$	221	0.88	%
Commercial—foreign		119	2.23			148	2.77			205	3.95			120		2.57			53	1.19
Commercial real estate—domestic		8	0.14			6	0.12			9	0.20			9		0.18			10	0.21
Total commercial		510	1.32			394	1.05			692	1.87			368		1.04			284	0.82
Residential mortgage		8	0.03			5	0.02			18	0.07			2		0.01			11	0.04
Home equity lines		7	0.12			5	0.08			6	0.10			6		0.11			6	0.11
Direct/Indirect consumer		38	0.50			48	0.63			60	0.78			56		0.72			38	0.47
Consumer finance		49	1.77			54	2.13			77	3.44			68		3.42			46	2.52
Credit card		269	5.28			285	5.09			299	5.03			323		5.31			378	5.78
Other consumer domestic		7	n/m			11	n/m			11	n/m			9		n/m			8	n/m
Foreign consumer		—	—			2	0.32			2	0.38			1		0.20			1	0.28
Total consumer		378	0.84			410	0.85			473	0.95			465		0.93			488	0.93
Total net charge-offs	$	888	1.06		$	804	0.94		$	1,165	1.35		$	833		0.98		$	772	0.88
By Business Segment:
Consumer & commercial banking	$	449	0.99	%	$	420	0.92	%	$	509	1.10	%	$	488		1.06	%	$	522	1.12	%
Global corporate & investment banking		216	1.35			203	1.32			526	3.44			272		1.96			172	1.34
Asset management		143	2.37			118	1.99			30	0.52			(4	)	0.06			3	0.04
Equity investments		—	—			—	—			7	6.26			1		0.72			3	3.36
Corporate other		80	0.50			63	0.34			93	0.50			76		0.38			72	0.33
Total net charge-offs	$	888	1.06		$	804	0.94		$	1,165	1.35		$	833		0.98		$	772	0.88

Loans are classified as domestic or foreign based upon the domicile of the borrower.

18

Bank of America Corporation

Nonperforming Assets

(Dollars in millions)

	2Q02			3Q02			4Q02			1Q03			2Q03
Commercial—domestic	$	2,847		$	3,132		$	2,781		$	2,605		$	2,265
Commercial—foreign		980			854			1,359			1,279			1,040
Commercial real estate—domestic		202			172			161			173			154
Commercial real estate—foreign		3			3			3			3			2
Total commercial		4,032			4,161			4,304			4,060			3,461
Residential mortgage		503			585			612			628			618
Home equity lines		64			57			66			63			55
Direct/Indirect consumer		27			31			30			28			33
Consumer finance		8			8			19			18			11
Foreign consumer		8			7			6			9			9
Total consumer		610			688			733			746			726
Total nonperforming loans		4,642			4,849			5,037			4,806			4,187
Foreclosed properties		297			282			225			227			243
Total nonperforming assets(1)	$	4,939		$	5,131		$	5,262		$	5,033		$	4,430
Loans past due 90 days or more and still accruing	$	605		$	726		$	764		$	808		$	726
Nonperforming Assets / Total Assets		0.77	%		0.78	%		0.80	%		0.74	%		0.58	%
Nonperforming Assets / Total Loans, Leases and Foreclosed Properties		1.45			1.50			1.53			1.46			1.23
Nonperforming Loans / Total Loans and Leases		1.36			1.42			1.47			1.40			1.16
Allowance for Loan Losses	$	6,873		$	6,861		$	6,851		$	6,853		$	6,841
Allowance / Total Loans		2.02	%		2.01	%		2.00	%		2.00	%		1.90	%
Allowance / Total Nonperforming Loans		148			142			136			143			163

Loans are classified as domestic or foreign based upon the domicile of the borrower.

(1) Balances do not include $98, $174, $120, $184, and $221 of nonperforming assets included in other assets at June 30, 2003, March 31, 2003, December 31, 2002, September 30, 2002, and June 30, 2002, respectively.

                

19

Bank of America Corporation

Significant Industry Non-Real Estate Outstanding Commercial Loans and Leases

(Dollars in millions)

	June 30, 2003		December 31, 2002		Increase (Decrease) from 12/31/02
Retailing	$	11,516	$	10,572	9	%
Transportation		8,026		8,030	(0	)
Leisure and sports, hotels and restaurants		7,694		8,139	(5	)
Food, beverage and tobacco		7,038		7,335	(4	)
Materials		6,880		7,972	(14	)
Education and government		6,553		5,624	17
Capital goods		6,393		7,088	(10	)
Commercial services and supplies		5,997		6,449	(7	)
Diversified financials		5,985		8,344	(28	)
Utilities		4,088		5,590	(27	)
Health care equipment and services		3,885		3,912	(1	)
Media		3,802		5,911	(36	)
Energy		2,766		3,076	(10	)
Religious and social organizations		2,639		2,426	9
Telecommunications services		2,516		3,105	(19	)
Consumer durables and apparel		2,494		2,591	(4	)
Banks		1,392		1,881	(26	)
Food and drug retailing		1,258		1,344	(6	)
Automobiles and components		1,192		1,024	16
Insurance		1,182		1,616	(27	)
Technology hardware and equipment		1,076		1,368	(21	)
Other (1)		20,200		21,568	(6	)
Total	$	114,572	$	124,965	(8	)

(1) At June 30, 2003 and December 31, 2002, Other includes $9,662 and $9,090, respectively, of loans outstanding to individuals and trusts, representing 2.7% of total outstanding loans and leases for both period ends. The remaining balance in Other includes loans to industries which primarily include software and services, pharmaceuticals and biotechnology, and household and personal products.

20

Bank of America Corporation

Selected Emerging Markets

(Dollars in millions)

	Loans and Loan Commitments		Other Financing(1)		Derivative Assets		Securities/ Other Investments(2)		Total Cross- Border Exposure(3)		Gross Local Country Exposure(4)		Total Foreign Exposure June 30, 2003		Increase/ (Decrease) from December 31, 2002
Region/Country
Asia
China	$	54	$	18	$	42	$	26	$	140	$	62	$	202	$	(42	)
Hong Kong(5)		151		59		100		116		426		3,477		3,903		99
India		406		173		61		247		887		937		1,824		451
Indonesia		56		—		18		26		100		2		102		(18	)
South Korea		584		583		28		67		1,262		841		2,103		867
Malaysia		8		4		—		11		23		146		169		(71	)
Pakistan		5		—		—		—		5		—		5		(2	)
Philippines		26		27		3		13		69		57		126		(30	)
Singapore		191		9		78		3		281		1,116		1,397		(271	)
Taiwan		283		87		44		—		414		580		994		(95	)
Thailand		71		5		20		26		122		194		316		53
Other		3		18		1		—		22		84		106		10
Total	$	1,838	$	983	$	395	$	535	$	3,751	$	7,496	$	11,247	$	951
Central and Eastern Europe
Russian Federation	$	0	$	0	$	0	$	4	$	4	$	2	$	6	$	1
Turkey		10		3		—		24		37		—		37		(21	)
Other		15		13		30		152		210		19		229		(72	)
Total	$	25	$	16	$	30	$	180	$	251	$	21	$	272	$	(92	)
Latin America
Argentina	$	197	$	30	$	2	$	109	$	338	$	74	$	412	$	(53	)
Brazil		253		228		37		94		612		255		867		(308	)
Chile		57		22		7		8		94		—		94		(47	)
Colombia		50		9		5		4		68		—		68		(20	)
Mexico		777		152		123		1,967		3,019		197		3,216		1,627
Venezuela		101		1		—		120		222		—		222		(10	)
Other		128		54		1		37		220		—		220		(5	)
Total	$	1,563	$	496	$	175	$	2,339	$	4,573	$	526	$	5,099	$	1,184
Total	$	3,426	$	1,495	$	600	$	3,054	$	8,575	$	8,043	$	16,618	$	2,043

(1) Includes acceptances, standby letters of credit, commercial letters of credit and formal guarantees.

(2) Amounts outstanding in the table above for Philippines, Argentina, Mexico, Venezuela and Latin America Other have been reduced by $13, $94, $0, $147 and $41, respectively, at June 30, 2003, and $12, $90, $505, $131 and $37, respectively, at December 31, 2002. Such amounts represent the fair value of U.S. Treasury securities held as collateral outside the country of exposure.

(3) Cross-border exposure includes amounts payable to the Corporation by residents of countries other than the one in which the credit is booked, regardless of the currency in which the claim is denominated, consistent with Federal Financial Institutions Examinations Council (FFIEC) reporting rules.

(4) Gross local country exposure includes amounts payable to the Corporation by residents of countries in which the credit is booked, regardless of the currency in which the claim is denominated. Management does not net local funding or liabilities against local exposures as allowed by the FFIEC.

(5) Gross local country exposure to Hong Kong consisted of $1,900 of consumer loans and $1,577 of commercial exposure at June 30, 2003. The consumer loans were collateralized primarily by residential real estate. The commercial exposure was primarily to local clients and was diversified across many industries.

21