Bank Of America Reports Record Third Quarter Earnings

Charlotte, N.C. (PROTEXT) - Bank of America Corporation (NYSE:BAC), whose stock is traded on the Tokyo Exchange, today reportedrecord third quarter earnings of $2.15 billion, or $1.25 pershare ($1.23 diluted). Results far surpassed the $374 million, or $.21 per share($.21 diluted), earnings of a year earlier that were impacted byglobal financial turbulence. Excluding a $725 million pre-taxmerger-related charge, operating earnings a year ago were $893million, or $.51 per share ($.50 diluted). Diluted operating earnings per share were up 7 percent fromthe second quarter of this year. The company's return on equity rose to 18.40 percent in thethird quarter, and the return on assets increased to 1.40percent. Cash operating earnings - which exclude the amortization ofintangibles and merger-related charges - were $2.37 billion, or$1.38 per share ($1.35 diluted). The return on tangible equitywas 29.48 percent. A year earlier, cash operating earnings were$1.12 billion, or $.64 per share ($.63 diluted). "Bank of America made solid progress during the thirdquarter," said Hugh L. McColl Jr., chairman and chief executiveofficer. "Our merger transition continues to go smoothly andremains on schedule. We are successfully building out ourinvestment banking platform and delivering those services to ourhuge middle market customer base. And we are refocusing a numberof our businesses to achieve greater value for customers andhigher profitability for shareholders. We are accomplishing allof these initiatives while increasing earnings and improvingreturns." For the first nine months of 1999, operating earnings were up25 percent to $6.13 billion, or $3.53 per share ($ 3.45 diluted)compared to $4.89 billion, or $2.81 per share ($2.73 diluted) ayear earlier. Net income was 49 percent higher at $5.98 billion,or $3.45 per share ($3.37 diluted), compared to $4.00 billion, or$2.30 per share ($2.24 diluted), a year earlier. Third Quarter Earnings Highlights (compared to a year ago) * Revenue rose 21 percent, as noninterest income increased 55percent and fully-taxable equivalent net interest income was up 3percent. * Average managed consumer loans increased by 17 percent. * Fee-based income recorded strong improvement in almost allareas and rose to 45 percent of revenue. * The efficiency ratio improved to 54 percent. * Net charge-offs declined to .51 percent of loans. Net Interest Income Fully taxable-equivalent net interest income of $4.60 billionwas 3 percent higher than a year earlier due to solid loangrowth, somewhat offset by the impact of securitizations, loansales and the funding cost of share repurchases. The net interestyield on earning assets was 3.46 percent compared to 3.60 percenta year earlier. Noninterest Income Noninterest income increased 55 percent to $3.73 billion dueto widespread gains across the spectrum of Bank of America's fee-based businesses. The primary gains were recorded in credit card,trading, investment banking, mortgage banking and service chargeincome. Fee income rose to 45 percent of revenue. Securities gains were $44 million compared to $280 million inthe third quarter of 1998. Efficiency Noninterest expense declined 1 percent to $4.53 billion,reflecting cost savings resulting from recent mergers offset byincreased revenue-based incentives, accelerated spending onmerger transition projects and continued expansion of theinvestment banking business. The efficiency ratio improved to 54percent. Credit Quality The provision for credit losses in the third quarter was $450million, compared to $1.4 billion a year earlier. Net charge-offswere $460 million, well below $902 million a year ago whichincluded a $372 million charge-off related to the D.E. Shawrelationship. Net charge-offs represented .51 percent of loansand leases in the latest period. Nonperforming assets were $3.04 billion, or .84 percent ofloans, leases and foreclosed properties on September 30, 1999,compared to $2.58 billion, or .73 percent a year earlier. Theallowance for credit losses totaled $7.08 billion on September30, 1999, equal to 252 percent of nonperforming loans and 1.96percent of loans and leases. The allowance was $7.21 billion, or315 percent of nonperforming loans and 2.05 percent of loans andleases, a year earlier. Capital Strength Shareholders' equity stood at $45.9 billion at September 30,1999. The Tier 1 capital ratio was 7.71 percent. The company'smarket capitalization was $95 billion. On June 23, the companyauthorized the repurchase of up to 130 million common shares over24 months, with an expectation to complete the program within 18months. Through September 30, the company had purchased 43million shares. Business Segment Results Consumer Banking, which serves individuals and smallbusinesses, earned $1.10 billion, while Commercial Banking, whichserves companies with from $10 million to $500 million inrevenue, earned $216 million. Together, they represented 61percent of the company's operating income. Global Corporate andInvestment Banking, which serves large corporate customers,earned $530 million, representing 25 percent of the company'searnings. Principal Investing and Asset Management, whichencompasses the private bank, trust, investment management,mutual funds, retail brokerage and principal investing, earned$244 million, representing 11 percent. Bank of America, with $621 billion in assets, is the largestbank in the United States. The company serves more than 30million households and 2 million businesses across the country,offering customers the largest and most convenient deliverynetwork from offices and ATMs to telephone and internet access.It also provides comprehensive international corporate financialservices for clients doing business around the world. The companycreates financial relationships featuring a wide array offinancial services, from traditional banking products toinvestments and capital raising within the securities markets.Bank of America stock (ticker: BAC) is listed on the New York,Pacific and London stock exchanges and certain shares are listedon the Tokyo Stock Exchange. Further investor information can befound at www.bankofamerica.com/investor .

www.bankofamerica.com Bank of America Corporation

Three Months

Nine Months

Ended September 30 EndedSeptember 30

1999

1998

19991998 Financial Summary (In millions, except per-share data) Operating net income

$2,151

$893

$6,125$4,887 Operating earnings

per common share

1.25

.51

3.532.81 Diluted operating earnings

per common share

1.23

.50

3.452.73 Cash basis earnings (A)

2,373

1,117

6,7945,566 Cash basis earnings per

common share

1.38

.64

3.913.20 Cash basis diluted earnings

per common share

1.35

.63

3.833.11 Dividends paid per common share .45

.38

1.351.14 Price per share of common stock

at period end

55.69

53.50

55.6953.50 Average common shares 1,722.307 1,740.092 1,734.4011,732.297 Average diluted common shares

1,755.146 1,784.418 1,773.6921,782.106 Summary Income Statement (Operating Basis) (Taxable-equivalent basis in millions) Net interest income

$4,603

$4,484

$13,911$13,811 Provision for credit losses (450)

(1,405)

(1,470)(2,410) Gains on sales of securities

44

280

226613 Noninterest income

3,728

2,405

10,4739,534 Other noninterest expense (4,526)

(4,583)(13,436)(14,054) Income before income taxes 3,399

1,181

9,7047,494 Income taxes - including FTE adjustment

1,248

288

3,5792,607 Operating net income

$2,151

$893

$6,125$4,887 SUMMARY Balance Sheet (Average balances in billions) Loans and leases

$361.400 $348.785 $362.302$344.539 Managed loans and leases(B)

387.580

356.396

387.305 353.394 Securities

80.261

65.536

77.998

64.791 Earning assets

528.564

495.911

527.450 493.900 Total assets

611.448

578.353

612.152 577.055 Deposits

336.998

347.783

341.693 343.369 Shareholders' equity

46.439

45.756

46.537

44.755 Common shareholders' equity

46.360

45.693

46.464

44.291 PERFORMANCE INDICES (Operating Basis) Return on average common shareholders' equity

18.40%

7.73%

17.61%14.68% Return on average tangible common shareholders' equity

29.48

14.51

28.4825.69 Return on average assets 1.40

.61

1.34

1.13 Return on average tangible assets

1.58

.79

1.521.33 Net interest yield

3.46

3.60

3.523.74 Efficiency ratio

54.34

66.55

55.1060.20 Cash basis efficiency ratio

51.67

63.28

52.3657.29 Net charge-offs (in millions)

$460

$902

$1,499$1,923 % of average loans and leases

.51%

1.03%

.55%

.75% Managed bankcard net charge-offs as a % of average managed bankcard receivables

4.83

5.99

5.666.42 REPORTED RESULTS (Including Merger-Related Charges) (In millions, except per-share data) Net income

$2,151

$374

$5,980$4,003 Earnings per common share 1.25

.21

3.452.30 Diluted earnings

per common share

1.23

.21

3.372.24 Return on average common shareholders' equity

18.40

3.23

17.1912.01 (A) Cash basis earnings equal operating net income excludingamortization of intangibles. (B) Prior periods are restated for comparison (e.g.acquisitions, divestitures and securitizations).

September 30

19991998 Balance Sheet highlights (In billions, except per-share data) Loans and leases

$360.236$351.982 Securities

79.83672.139 Earning assets

534.431507.329 Total assets

620.652594.673 Deposits

337.011345.756 Shareholders' equity

45.88947.307 Common shareholders' equity

45.81147.245 Per share

26.79

27.12 Total equity to assets ratio (period-end)

7.39%7.96% Risk-based capital Tier 1 capital ratio

7.71

7.29 Total capital ratio

11.39

11.25 Leverage ratio

6.59

6.64 Common shares issued and outstanding (in millions)

1,710.039 1,742.038 Allowance for credit losses

$7.076

$7.215 Allowance for credit losses as a % of loans and leases

1.96%

2.05% Allowance for credit losses as a % of nonperforming loans

251.85314.55 Nonperforming loans

$2.810$2.294 Nonperforming assets

3.0382.582 Nonperforming assets as a % of: Total assets

.49%.43% Loans, leases and foreclosed properties

.84.73 OTHER DATA Full-time equivalent headcount

158,886174,844 Banking centers

4,5354,870 ATMs

14,04214,333 BUSINESS SEGMENT RESULTS - Three months ended September 30,1999 (In millions)

OPERATING AVERAGERETURN ON

TOTAL

NET

LOANSAVERAGE

REVENUE

INCOME

AND LEASESEQUITY Consumer Banking

$4,657

$1,097

$182,732

22% Commercial Banking 780

216

56,653

20 Global Corporate and

Investment Banking

1,989

530

103,318

16 Principal Investing and Asset Management

802

244

19,061

31 Additional financial information for investors can be found at http://www.bankofamerica.com/newsroom/press/images/3q99fact.pdf ots Original Text Service: Bank of America CorporationInternet: http://www.newsaktuell.de Contact: Investors, SusanCarr, (USA) 704-386-8059, or Kevin Stitt, (USA) 704-386-5667,or Media, Bob Stickler or Rick Beebe, (USA) 704-386-8465, all ofBank of America Corporation Web Site:http://www.bankofamerica.com/investor Web Site:http://www.bankofamerica.com

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