SunTrust Banks, Inc.

1Q 2008 Earnings Presentation

April 22, 2008

Exhibit 99.2

1

The following should be read in conjunction with the financial statements, notes and other information contained in the Company’s 2007 Annual Report on Form

10-K, Quarterly Reports on Form 10-Q, and Current Reports on Form 8-K. 

This

presentation

includes

non-GAAP

financial

measures

to

describe

SunTrust’s

performance.

The

reconciliation

of

those

measures

to

GAAP

measures

are

provided within this presentation.

In this presentation, net interest income and net interest margin are presented on a fully taxable-equivalent (“FTE”) basis, and ratios

are

presented

on

an

annualized

basis.

The

FTE

basis

adjusts

for

the

tax-favored

status

of

income

from

certain

loans

and

investments.

The

Company

believes

this

measure

to

be

the

preferred

industry

measurement

of

net

interest

income

and

provides

relevant

comparison

between

taxable

and

non-taxable

amounts.

The information in this presentation may contain forward-looking statements.

Statements that do not describe historical or current facts, including statements

about

beliefs

and

expectations,

and

in

particular

the

outlook

statements

provided

at

slide

26-27,

are

forward-looking

statements.

These

statements

often

include

the

words “may,”

“could,”

“will,”

“should,”

“believes,”

“expects,”

“anticipates,”

“estimates,”

“intends,”

“plans,”

“targets,”

“initiatives,”

“potentially,”

“probably,”

“projects,”

“outlook”

or similar expressions.

Such statements are based upon the current beliefs and expectations of SunTrust's management and on information currently

available to management.

The forward looking statements are intended to be subject to the safe harbor provided by Section 27A of the Securities Act of 1933 and

Section 21E of the Securities Exchange Act of 1934.

Such statements speak as of the date hereof, and SunTrust does not intend to update the statements made

herein or to update the reasons why actual results could differ from those contained in such statements in light of new information or future events.

Forward looking statements are subject to significant risks and uncertainties.  Investors are cautioned against placing undue reliance on such statements.  Actual

results may differ materially from those set forth in the forward-looking statements.  Factors that could cause SunTrust’s results to differ materially from those

described in the forward-looking statements can be found in the Company's 2007 Annual Report on Form 10-K, in the Company’s Quarterly Reports on Form 10-Q,

and in the Current Reports on Form 8-K filed with the Securities and Exchange Commission and available at the Securities and Exchange Commission's internet site

(http://www.sec.gov).

Those

factors

include:

(1)

adverse

changes

in

general

business

or

economic

conditions

could

have

a

material

adverse

effect

on

our

financial

condition

and

results

of

operations;

(2)

changes

in

market

interest

rates

or

capital

markets

could

adversely

affect

our

revenues

and

expenses,

the

value

of

assets

and

obligations, costs of capital, or liquidity; (3) the fiscal and monetary policies of the federal government and its agencies could have a material adverse effect on our

earnings; (4) changes in securities markets or markets for commercial or residential real estate could harm our revenues and profitability; (5) customers could pursue

alternatives to bank deposits, causing us to lose a relatively inexpensive source of funding; (6) customers may decide not to use banks to complete their financial

transactions,

which

could

affect

net

income;

(7)

we

have

businesses

other

than

banking,

which

subjects

us

to

a

variety

of

risks;

(8)

hurricanes

and

other natural

disasters may adversely affect loan portfolios and operations and increase the cost of doing business; (9) negative public opinion could damage our reputation and

adversely impact our business; (10) we rely on other companies for key components of our business infrastructure; (11) we rely on our systems, employees and

certain counterparties, and certain failures could materially adversely affect our operations; (12) we depend on the accuracy and completeness of information about

clients

and

counterparties;

(13)

regulation

by

federal

and

state

agencies

could

adversely

affect

our

business,

revenues,

and

profit

margins;

(14)

competition

in

the

financial services industry is intense and could result in losing business or reducing profit margins; (15) future legislation could harm our competitive position; (16)

maintaining or increasing market share depends on market acceptance and regulatory approval of new products and services; (17) our ability to receive dividends from

our

subsidiaries

accounts

for

most

of

our

revenues

and

could

affect

our

liquidity

and

ability

to

pay

dividends;

(18)

significant

legal

actions

could

subject

us to

substantial uninsured liabilities; (19) we have in the past and may in the future pursue acquisitions, which could affect costs and from which we may not be able to

realize anticipated benefits; (20) we depend on the expertise of

key personnel without whom our operations may suffer; (21) we may be unable to hire or retain

additional qualified personnel and recruiting and compensation costs may increase as a result of turnover, both of which may increase costs and reduce profitability

and

may

adversely

impact

our

ability

to

implement

our

business

strategy;

(22)

our

accounting

policies

and

methods

are

key

to

how

we

report

financial

condition and

results of operations, and may require management to make estimates about matters that are uncertain; (23) changes in our accounting policies or in accounting

standards could materially affect how we report our financial results and condition; (24) our stock price can be volatile; (25) our disclosure controls and procedures

may fail to prevent or detect all errors or acts of fraud; (26) our trading assets and financial instruments carried at fair value expose the Company to certain market

risks;

(27)

weakness

in

residential

property

values

and

mortgage

loan

markets

could

adversely

affect

us;

(28)

we

may

be

required

to

repurchase

mortgage

loans or

indemnify mortgage loan purchasers as a result of breaches of representations and warranties, borrower fraud, or certain borrower defaults, which could harm our

liquidity, results of operations and financial condition; and (29) we may enter into transactions with off-balance sheet entities affiliated with SunTrust or its subsidiaries

which may cause us to recognize current or future losses.

2

Financial Performance:  Income Statement Summary

($ in millions, except per share data)

1Q 2008        

4Q 2007            1Q 2007

% Change

Net Interest Income (FTE)

$1,167.8

-2%

-2%

Provision for Loan Losses

560.0

57%                 892%

Noninterest Income

1,057.5

84%

20%

Total Revenue (FTE)

2,225.3

26%                     8%

Total

Noninterest

Expense

1,255.1

-14%

2%

Provision for Income Taxes

91.6

-215%

-60%

Net Income Available to Common Shareholders        283.6

NM                 -45%

Net Income Per Average Common Diluted Share    $   0.81

NM

-44%

EPS of $0.81 Impacted by Increased Provision Expense and

Net Positive Non Core-Items

3

Capital & Liquidity

Solid Capital Foundation and Enhanced Liquidity Position

Tier 1 Capital Ratio

7.25%

Total Capital Ratio

11.00%     

Tangible Equity to Tangible Assets        

6.53%

Tier 1 target remains 7.5%

Issued $685 million enhanced trust preferred securities in February

Planned transactions regarding stock holdings in The Coca-Cola Company

expected to be resolved during 2Q 2008

Anticipated Tier 1 increase of $1 billion or more from The Coca-Cola Company

transactions would add roughly 65bps to Tier 1 ratio on a pro forma basis

Strong liquidity position; Brokered and Foreign deposits down 42%

1.

Estimated

1

1

4

E²

Efficiency and Productivity Program: Goals

$325¹

$350

$530¹

Total

Initial Goals

First Revision

of Goals

Second Revision

of Goals

2007 Actual/Goal

2008 Goal

2009 Goal

$215

(Actual)

$205

$135

2007 expense

savings of

$215

million was 119% of

goal

Increased goals

for

the second time

since program

inception

2009 gross expense

savings represent

11% of 2006

expense base

Expect $500 Million in 2008 Benefits, Up $150 Million; 2009

Program Goal Increased to $600 Million

1.

Gross cost savings goals include approximately $50 million of interest expense savings related to reduced financing costs from disposition

of

corporate

real

estate,

which

will

be

fully

realized

beginning

in

2Q

2008

($ in millions)

$600¹

Total

$500

$215

(Actual)

5

E   Efficiency and Productivity Program: Results

($ in millions)

Gross Savings in 1Q 2008 of $113 Million

Over 50% increase from 4Q

2007 run rate of $75 million

Annualized1Q 2008 savings

level of over $450 million

One-third of increase in run rate

driven by organizational review

Key contributors to achieving

remaining goals include supplier

management, outsourcing, and

process reengineering

$500 2008 Goal

$113 1Q Savings¹

1.  1Q 2008 gross savings includes $10 million in interest expense savings related to disposition of corporate real estate

500

400

300

200

100

2

6

Risk Review:  Market Update

Volatility in the credit

markets has been

unprecedented

Prices of these indices

declined during the

quarter

Corporate and

mortgage credit markets

have taken the brunt of

the volatility

Source: Bloomberg

Source: Markit, SunTrust

ABX

06-2

AAA:

Synthetic

Index

of

AAA-rated

benchmark

subprime

RMBS

from

the

latter

half

of

2006

CMBX 06-2 AAA: Synthetic Index of AAA-rated benchmark CMBS from the latter half of 2006

LCDX: Synthetic Index of syndicated secured loans from the latter half of 2007

CDX:

Synthetic

Index

referenced

to

125

investment

grade

entities

domiciled

in

North

America

Structured Credit Index Prices - Q1 2008

64

68

72

76

80

84

88

92

96

100

CMBX 06-2 AAA

LCDX 9 5YR

ABX 06-2 AAA

5-yr CDX -

Q1 2008

70

80

90

100

110

120

130

140

150

160

170

180

190

200

7

Risk Review:  Acquired Securities Portfolio

Aggressively Managing Trading Assets; 59% Reduction in Exposure

to Acquired Securities

We expect to sell additional securities

on an opportunistic basis; current

market environment continues to

remain challenging

Aggregate portfolio reduction will

continue, albeit at a slower rate. At a

minimum, we expect portfolio

exposure to be reduced below $1.4

billion by end of Q2

Mark-to-Market accounting

1.  Grand Horn is a AAA-rated security arising from the securitization of a commercial leveraged loan warehouse

Carrying         Acquisition

Value

Value

3/31/08

Q4 2007

SIV

$  685

$1,478

RMBS

242              1,042

CDO

287

429

Other ABS

46                

148

CLO

39                 

47

—

—

Subtotal             

1,299

3,144

Grand Horn

CLO

1

323

359

Total

$1,622

$3,503

($ in millions)

8

Risk Review:  Available for Sale Portfolio

SunTrust Maintains a High Quality AFS Investment Portfolio

Portfolio Quality

•

High quality with 91% rated

AAA

•

Short duration of 4.3 years

•

Unrealized gain of $171 million

3.9%

1.  Excludes equity securities with a market value of $3.4 billion

2.  Excludes unrealized gains of $171 million on debt securities

AAA, 91%

AA, 4%

A & Below, 3%

NR, 2%

$12.3 Billion AFS Debt Securities

As of March 31, 2008

1,2

9

Credit Perspective:  Asset Quality Metrics

Annualized Charge-Offs of 97bps, ALLL Increased to 1.25%, NPL

ratio up to 1.67%, but Early Stage Delinquency Rate Stable

$ in Millions

03/31/2008

12/31/2007

Variance

Total Loans

$123,713.2

$122,319.0

$1,394.2

Allowance for Loans & Lease Losses

1,545.3

1,282.5

262.8

Net Charge-offs

297.2

168.0

129.2

Provision Expense

560.0

356.8

203.2

NPAs

2,320.0

1,655.5

664.5

----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------

NPLs

to Total Loans

1.67%

1.19%

0.48%

NPAs

to Total Loans + OREO/OA

1.87%

1.35%

0.52%

ALLL to NPLs

74.70%

87.83%

-13.12%

ALLL to Loans

1.25%

1.05%

0.20%

NCOs (annualized to Average Loans)

0.97%

0.55%

0.42%

30-

89

Days

Past

Due

1.52%

1.53%

-0.01%

10

Credit Perspective:  Loan Portfolio as of 1Q 2008

Product Category

Nonaccrual

$MM's

Charge-Off

Rate

Residential Mortgages /

1.29%

Home Equity Lines

2.64%

Construction

520.7

0.74%

Commercial

97.9

0.35%

Commercial Real Estate

64.3

0.00%

Consumer

46.9

1.26%

$2,038.0

0.97%

$1,308.2

Growth

in

Nonaccrual

Loans

driven

by

Residential

Mortgage

and

Construction

Loans

Residential Mortgage & Home Equity combined represented 39% of total loans but they

comprised

64%

of

total

Nonaccrual

Loans

Loan Portfolio -

$123,713 million

Nonaccrual Loans -

$2,038 million

Commercial,  $37,307

Commercial Real Estate, 

$12,894

Retail Consumer & Credit

Card,  $12,305

Construction,  $12,981

Home Equity,  $15,134

Residential Mg,  $33,092

Consumer -

Direct   $4,192

Consumer -

Indirect $7,305

Credit Card             $  808

11

Performance in the Residential Mortgage Portfolio is Stabilizing

1. Does not include nonaccruals

2.00%

6.50

8.30

3.30

1.60

0.80

1.40%

12/31/07

60 + DLQ

1

1.77%

8.92

8.28

3.71

1.35

0.50

1.28%

03/31/08

60 + DLQ

1

$1,073.4

60.5

241.8

121.7

77.7

41.7

$  530.0

Total

$NPLs

Credit Quality Metrics

79%

100%

$ 33,092

Total

97

1.4

470

Alt-A 2

nd

77

3.3

1,085

Alt-A 1

st

84

4.8

1,575

Lot Loans

92

12.3

4,080

Prime 2

nd

Insured

75 

10.9

3,625

Home Equity Loans

77%

67.3%

$ 22,257

Core Portfolio

Orig

WACLTV

%

03/31/08

Balance

Loan Type

Portfolio Profile

Credit Perspective:  Residential Mortgages

Residential Mortgages $33,092 million

(As of 03/31/08, $ in millions)

12

Credit Perspective:  Residential Mortgages

(As of 03/31/08, $ in millions)

We Have Already Recognized Expected Losses on 60% of the

Residential Mortgage NPL Balance

1. Most NPL’s

in this category are claims in process.  A small number of losses were recognized due to denied claims.

2. Includes Home Equity NPL’s

of $41.7 million not shown in above table

NPL’s

with Write-downs

Loan Type

Balance

before

write-

down

-

Amount

of write-

down

=

NPL

Balance

+

NPLs

not

yet written

down  

=

Total

NPL’s

2

% Loss

Severity

Core Portfolio

$ 362.6

$ (31.7)

$ 330.8

$ 199.2

$ 530.0

8.8%

Prime 2

nd

Insured

1

53.6

(10.8)

42.8

35.0

77.7

NA

Lot Loans

108.7

(29.9)

78.8

42.9

121.7

27.5

Alt-A 1

st

187.5

(20.9)

167.0

74.8

241.8

11.1

Alt-A 2

nd

150.1

(121.5)

28.6

31.9

60.5

80.9

Total

$ 862.8

$ (214.8)

$ 648.0

$ 383.7

$ 1,073.4

13

Credit Perspective:  Home Equity Lines

Home Equity Lines $15,134 million

(As of 03/31/08, $ in millions)

1.  Excludes 3rd

party originated

2.  Excludes 3rd party originated and CLTV 90+%

3.  Excludes 3rd party originated, CLTV 90+% and Florida (81-90%)

4.  Annualized first quarter rate

Performance Issues Largely Confined to 3

Party Originated, 

CLTV’s

of >80% for Florida, and >90% for States Other Than

Florida

$15,134

9,409.5

1,162.2

2,705.2

$1,857.1

03/31/08

Balance

2.48%

1.55%

2.64%

723

74%

100.0%

Total

0.87

2.56

1.76

4.10%

%

NPL

0.94

4.24

3.34

9.11%

Q1

C/O

4

%

Credit Quality Metrics

1.46

722

65

62.2

All Other

3

3.43

717

86

7.7

Florida

2

(81-90%

LTV)

2.87

736

95

17.9

CLTV > 90%

1

5.71%

715

86%

12.2%

3

Party

Originated

30 +

DLQ

Current

WAFICO

Orig

WACLTV

%

of

Portfolio

Type

Portfolio Profile

rd

rd

14

Credit Perspective:  Construction

1.  Annualized first quarter charge-off ratio

(As of 03/31/08, $ in millions)

Charge-offs increased during Q1 primarily in Construction-to-

Perm loans. Increase in NPLs

driven by Construction-to-Perm and

Residential

Construction $12,981 million

4.0

39

117.8

0.42

666

26

16

2,135

Residential A&D

Commercial

0.2

3

8.5

0.00

1, 503

27

26

3,381

Construction

0.7

0

9.6

0.00

788

26

4

589

Commercial A&D

37%

39

42

50%

FL

NPL

%

$ 12,981

1,256

2,543

$ 3,077

03/31/08

Balance

4.5%

$520.6

0.74%

28%

100%

Total

32.9

189.0

$162.8

$

NPL

0.00

1.23

1.66%

Q1

C/O¹

%

Credit Quality Metrics

3.7

795

21

10

Raw Land

3.2

400

30

20

Construction

Residential

11.6%

477

31%

24%

Construction Perm

%

30 +

DLQ

Avg.

Size

$000’s

%

FL

%

of

Portfolio

Type

Portfolio Profile

15

Credit Perspective:  Loss Mitigation Actions Taken or Planned

Residential builder portfolio

Reviews of exposure $

$1MM

Client prioritization discipline

Reduced exposure $1.4B in 2007

New Special Assets group dedicated to Real Estate

Three geographic units

Significant increase in workout officers

Handles homebuilders, large conventional

mortgages and construction to perm mortgages

Wholesale portfolio reviews

Proactive reviews of Wholesale segments of

portfolios

Monthly central credit review of relationships $

$100MM

Targeted reviews on industries with signs of

deterioration

Introduced new policy on:

Direct exposure

Indirect exposure

Exception approval

Weekly conference calls on market conditions

Repeated and on-going Home Equity policy changes:

Curbed Wholesale/broker channel originations

Eliminated CLTVs

> 89.9% in broker channel

Additional LTV restrictions for

“Declining Markets”,

2   

homes

and condos

DTI and Credit score restrictions

Mortgage / Home Equity

Wholesale

Centralized construction to perm administration

Tightened underwriting standards for C/P and lot loans

(restricting LTV, DTI and property type, size and channel)

Tightened underwriting standards on Agency production

Enhancements to automated dialer calling strategies

Standardized more rigorous charge-off procedures

Significantly expanded workout/collections staff

Implemented aggressive loss mitigation program to keep

borrowers in their homes and avoid foreclosure

nd

16

Financial Performance: Loans & Deposits

($ in millions, average balances)

1Q 2008

4Q 2007

4Q 2007

1Q 2007

% Change

Annualized

Commercial

$   36,375

4%

17%

7%

Real Estate Home Equity Lines

14,603

1

6                         6

Real Estate Construction

12,450

-6                      -24                       -7

Real Estate 1-4 Family

32,440

1                         6                       -5

Real Estate Commercial

13,113

2                         7                        2

Consumer –

Direct

4,063

3                       12             

-4

Consumer –

Indirect

7,646                         -3                     -12                       -6

Credit Card

774

12

49

109

Total Loans

121,464    

1                        5                        0

Noninterest-Bearing Deposits

20,616

-2                       -6                      -6

NOW Accounts

21,981

6                      24                      11

Money Market Accounts

25,343                           5                     18                      15

Savings

3,917

-6                     -25                     -22

Consumer Time

17,031

-1                       -3                        1

Other Time

12,280

-1

-2

1

Total Consumer and Commercial Deposits

101,168                           2                     

6                         3 

Brokered & Foreign Deposits

15,469

-2

-6

-42

Total Deposits

$116,637

1%

4%                     -6%

17

Financial Performance:  Net Interest Margin

3.02%

3.10%

3.18%

3.07%

3.13%

1Q 2007

2Q 2007

3Q 2007

4Q 2007

1Q 2008

Margin of 3.07%, Up 5 bps from 1Q 2007, but Down 6 bps from

4Q 2007

Margin pressure from deposit pricing and

growing NPAs

continues

Seeing early signs of stabilizing DDA

Further expected Fed rate reductions,

pricing pressure, and growing NPAs

will

continue to create downward pressure on

net interest margin

As a result we expect some additional

compression in 2Q

18

Financial Performance:  Provision

Provision

$560.0 

$356.8           $147.0          $104.7

Net Charge-Offs

$297.2         $168.0           $103.7          $  88.3

Net Charge-Off Ratio

0.97%

0.55%           0.34%           0.30%

Net ALLL Increase          

$262.8         $188.8           $  43.3         $   16.4

Allowance to Loan Ratio         

1.25%          1.05%            0.91%           0.88%

1Q 2008

4Q 2007

3Q 2007

2Q 2007

($ in millions)

Provision Expense Drives 20 bps Increase in Allowance to

Loan Ratio

19

Financial Performance:  Noninterest Income

($ in millions)

Noninterest Income up 20% over 1Q 2007 and 13% Excluding Net

Gains from Both Periods

1Q 2008

1Q 2007

Change

Noninterest

Income

$1,058

$879

20%

Net Adjustments¹

71

2

Adjusted Noninterest Income           987

$877

13%

Reported

noninterest

income

up

20%

versus

1Q

2007

driven

by

solid

performance

in

most

fee

income businesses

Adjusting both years’

results for net gains results in a 13% increase

1.  Adjustment detail included in appendix includes securities gains and losses, Visa and Lighthouse gains, and impacts from adoption of FAS 157/159 and

SAB 109

$

%

20

Financial Performance:  Noninterest Expense

Core Expenses in 1Q 2008 Down Versus 4Q 2007 and Flat

Compared to 1Q 2007

Year over year adjusted expense flat in spite of $36 million in increased credit costs

Sequential quarter adjusted expenses are down even after absorbing $35 million seasonal increase

in employee benefits expense

1. Adjustment detail included in appendix

2. Includes operating losses, credit and collections, and other real estate expense

Noninterest

Expense

$1,255             $1,455

$1,236

-14%            2%

Net Adjustments

-24

145

-45

Adjusted Noninterest

Expense             $1,279   

$1,310

$1,281  

Change          Change

1Q 2008

4Q 2007

1Q 2007

4Q 2007

1Q 2007

%

%

($ in millions)

-2%          0%

2

1

21

Summary

Increasing capital and improving liquidity

Raising E   goals

Aggressively managing trading asset exposure

Minimizing new credit risk and mitigating existing risk

Growing deposits and prudently increasing loans

Manageable level of margin pressure

Solid noninterest income trends

Strong expense management results

2

22

Appendix

23

Items Impacting Financial Performance

Revenue

Visa IPO Gain

Other Income

$  86

$    -

Market Valuation Write-downs

Trading Income

(47)

(477)

Market Valuation Write-downs

Mortgage Production Income

(53)

(78)

Lighthouse Sale Gain

Other Income

89

-

Corporate Real Estate Gain

Other Income

37

119

SAB 109

Mortgage Production Income

18                                -

MSR Sale

Mortgage Servicing Income                       -

19

Other-Than-Temporarily Impaired: AFS

Securities Gains/(Losses)       

(64)                               -

Expense

Seasonal Employee Benefits

Employee Comp

(35)

-

Net E 

Nonrecurring

Miscellaneous

(5)

(10)

Debt Retirement

Other Expense                                           (12)                              -

Visa Litigation

Other Expense

39                            (77)

Affordable Housing Expense

Other Expense

(2)

(58)

Income Statement Category

1Q 2008  

Estimated 

Impact                 

4Q 2007           

Estimated 

Impact

($ in millions)

2

24

Noninterest Income Reconciliation

($ in millions)

%                  %

Change        Change

1Q 2008

4Q 2007

1Q 2007

4Q 2007

1Q 2007

Total Noninterest Income

$1,058        $   576

$879

84%

20%

Securities Gains/(Losses)

4                 6

-

AFS ABS OTTI –

Securities Losses                 -64                -

-

VISA IPO

86

-

-

Market Valuation Write-downs                       -287

-561                    -9                  

–

Trading

STI Debt Valuation Write-up                            240               84             

-6 

–

Trading

Market Valuation Write-downs                         -53              -78

-27

–

Mortgage Production

Lighthouse Gain

89                  -

32

Corporate Real Estate Gains                             37     

119                     -

FAS 157/159 –

Trading                                          -

-

88 

FAS 157/159 –

Mortgage Production                  -

-

-42

FAS 91 –

Mortgage Production¹

-

-

-33

SAB 109 –

Mortgage Production                      18

-

-

Net Adjustments                                                 

71

-430

2

Adjusted Noninterest Income                      $  987        $1,006              $876             -2%           13%

1. FAS 91 deferral elimination adjustments is reflected as an increase to 1Q 2007 to make comparable to future quarters

25

Noninterest Expense Reconciliation

1. FAS 91 deferral elimination increased expenses beginning

in 2Q 2007.  1Q 2007 expenses adjusted upward to provide comparability to

subsequent quarters

Noninterest Expense

$1,255             $1,455

$1,236              -14%              2%

Net E   Nonrecurring

5

10                     2

FAS 91 Deferral

-

-

-37

Visa Litigation Accrual

-39                     77

-

Debt Retirement

12

-

-

Affordable Housing Write-down

2                     58                    -

Tax Reserve Release

-4

-

-10

Net Adjustments

-24

145

-45

Adjusted

Noninterest

Expense

$1,279

$1,310

$1,281                -2%            0%

Change        Change

1Q 2008        4Q 2007        1Q 2007

4Q 2007

1Q 2007

%

%

($ in millions)

2

1

26

Outlook

Economic Outlook

Expect a weak economy in the short-term with the possibility that weakness could extend into 2009

Expect home values to decline further

Risk

Looking at current NPL’s and delinquency queues, and recognizing that our foresight is constrained by economic uncertainty, we

expect

charge-offs

to

increase

in

the

2nd

quarter

by

15%-20%

from

the

$300

million

recorded

in

the

1st

quarter.

Deterioration

has

slowed and we believe ultimate losses will be manageable within our current capital, liquidity and earnings framework.

Looking at the portfolio trends and potential future scenarios, we believe we should experience lower charge-offs in the second half of

the year provided that the economy and home prices do not deteriorate too far or fast from here.  

Expect that some additional reserve building will be required; however, after increasing the reserve ratio by a combined 34 basis points

in

the

last

two

quarters,

including

20

bps

in

the

1

quarter,

we

expect

that

future

quarterly

increases

will

be

at

a

much

slower

pace.

94%

of

the

residential

mortgage

portfolio

shows

a

decrease

in

60+

delinquencies

–

we

view

this

as

a

leading

indicator

of

potentially

lower future NPL’s

and subsequent charge-offs.

We expect the home equity line portfolio to continue to produce significant charge-offs at least for the next few quarters as 30+

delinquency has ticked up since December and as home values remain soft.  There are some mitigating factors which suggest charge-

offs could stabilize: reductions in the prime rate are materially lowering payments, approximately two-thirds of the portfolio continues to

perform

well,

and

while

30+

delinquency

ticked

up

from

December,

the

rate

of

increase

has

slowed. 

We expect the construction to permanent portfolio to rapidly decline over the next year.  Charge-offs in the book should peak in the

next 3 to 6 months and decline after that as the portfolio runs-off.

Residential construction loans will continue to show increasing problems in our softer markets.

Aggressively managing trading assets, reducing exposure to acquired securities.  Aggregate portfolio reduction will continue, albeit at a

slower rate; at a minimum, exposure is expected to be reduced below $1.4 billion by the end of the second quarter.  We believe we are

carrying these securities at appropriate values; however, markets remain volatile and further valuation adjustments up or down are

possible.

1.

Actual

results

could

differ

materially

from

those

contained

in

or

implied

by

such

statements

-

a

list

of

important

factors

that

could

affect

actual

results

are

listed on slide 1

st

1

27

Outlook

Balance Sheet

There are early indications of DDA stabilization

Early signs indicated a cyclical shift in commercial client balances out of sweep accounts and into DDAs

Long-term Tier 1 target remains 7.5%

Expect transactions involving The Coca-Cola Company equity holdings to be complete in the second quarter of 2008

Anticipate minimum Tier 1 capital increase of approximately $1 billion from The Coca-Cola Company equity holdings

transactions, which would add roughly 65 basis points to the Tier 1 ratio on a pro-forma basis

Anticipate reassessing the appropriateness of long-term Tier 1 target of 7.5% in a post transaction environment

Revenue & Expense

Realization of the full impact of the first quarter Fed rate reductions, continuing deposit pricing competition, growing NPA’s,

and the potential for additional Fed cuts all point to further margin compression in the second quarter

Anticipate

stabilization

and

possible

expansion

of

margin

in

the

second

half

of

2008

if

deposit

pricing

pressures

and

volumes improve, despite the continuing potential for rising NPA’s

Expect to achieve run-rate savings of $500 million in 2008

Increased overall E  

program

goal to $600 million in run-rate savings during 2009

The

bulk

of

the

growth

in

E

savings

going

forward

will

be

generated

by

Supplier

Management,

Outsourcing,

and

Process

Reengineering

1.

Actual

results

could

differ

materially

from

those

contained

in

or

implied

by

such

statements

-

a

list

of

important

factors

that

could

affect

actual

results

are

listed on slide 1

1

2

2