BankAmerica Earns $1.9 Billion, or $1.08 Per Diluted

Share, in First Quarter Charlotte, N.C. (PROTEXT) - BankAmerica Corporation (NYSE:BAC), whose stock is traded on the Tokyo Exchange, today reportednet income of $1.91 billion, or $1.10 ($1.08 diluted) per share,for the first quarter of 1999, a 44 percent increase from netincome of $1.33 billion, or $.77 ($.75 diluted) per share, ayear earlier. The first quarter a year ago included a merger-related charge of $642 million after tax. Excluding that charge,operating income a year ago was $1.97 billion, or $1.14 ($1.11diluted) per share. First quarter 1999 earnings grewsignificantly from fourth quarter 1998 operating earnings of$1.60 billion, or $.92 ($.91 diluted) per share. The return on common equity was 16.8 percent and the return onassets was 1.27 percent. Cash earnings -- which exclude the amortization ofintangibles -- were $2.14 billion, or $1.23 ($1.20 diluted) pershare in the latest quarter. Return on average tangible commonshareholders' equity was 27.4 percent. "We are pleased with our first quarter results, which includecontinued strong performance in Consumer Banking and asignificant improvement in Global Corporate and InvestmentBanking," said Hugh L. McColl, Jr., BankAmerica chairman andchief executive officer. "Our merger transition is on track, andwe expect the benefits of lower costs and enhanced revenueopportunities to positively impact earnings in the comingquarters." First Quarter Earnings (compared to a year ago) Lower expenses - primarily due to merger-related savings -stronger trading results and continued solid loan growth wereoffset by lower other income, investment banking revenue andsecurities gains. Net Interest Income Fully taxable-equivalent net interest income of $4.65 billionwas virtually unchanged from a year earlier, as loan and depositgrowth and deposit pricing initiatives offset the impact of assetsecuritizations, loan sales and spread compression. Averagemanaged loans grew 11 percent to $385 billion, reflectingincreases in both consumer and business loans. The net yield onearning assets declined by 23 basis points to 3.58 percent due toa higher level of investment securities and lower loan anddeposit spreads. Noninterest Income Noninterest income declined 8 percent to $3.22 billion,reflecting lower other income and investment banking revenue.Trading results were up from last year's strong performance.Credit card income and deposit fees also rose. Investment bankingresults, despite continuing improvements over recent quarters,remained below last year's strong performance. Securities gains of $130 million were significantly below the$213 million recorded in the first quarter of 1998. Efficiency Noninterest expense decreased by more than 5 percent to $4.45billion, reflecting cost reductions resulting from recent mergerssomewhat offset by continued spending on transition projectsassociated with the merger of NationsBank and BankAmerica.Personnel expense dropped by more than 4 percent, and otheroperating expenses were also reduced. The efficiency ratio was 57percent, an improvement from 58 percent a year earlier. Credit Quality The provision for credit losses in the first quarter was $510million, the same as a year earlier. Net charge-offs remainedvirtually flat from a year ago at $519 million, equal to .58percent of loans and leases, a 3-basis-point improvement from ayear ago. Nonperforming assets were $3.12 billion, or .86 percent ofloans, leases and foreclosed properties on March 31, 1999,compared to $2.69 billion, or .79 percent a year earlier. Theallowance for credit losses totaled $7.12 billion on March 31,1999, equal to 251 percent of nonperforming loans and 1.96percent of loans and leases. The allowance was $6.76 billion, or1.98 percent of loans and leases, a year earlier. Capital Strength Total shareholders' equity rose 4 percent to $46.8 billion atMarch 31, 1999. This represented 7.62 percent of period-endassets, compared to 7.77 percent on March 31, 1998. Book valueper common share rose 4 percent from a year earlier to $26.86 atMarch 31, 1999. Business Segment Results Consumer Banking, which serves individuals and smallbusinesses, earned $873 million, while Commercial Banking, whichserves companies with from $10 million to $500 million inrevenue, earned $197 million. Together, they represented 56percent of the company's net income. Global Corporate andInvestment Banking, which serves large corporate customers,earned $492 million, representing 26 percent of the company'searnings. Principal Investing and Wealth Management, whichencompasses the private bank, trust, investment management,mutual funds, retail brokerage and principal investing, earned$209 million, representing 11 percent. BankAmerica Corporation, with $614 billion in total assets, isthe largest bank in the United States. It has full-serviceoperations in 22 states and the District of Columbia and providesfinancial products and services to 30 million households and 2million businesses, as well as providing international corporatefinancial services for business transactions in 190 countries.BankAmerica Corporation stock (ticker: BAC) is listed on the NewYork, Pacific and London stock exchanges and certain shares arelisted on the Tokyo Stock Exchange. www.nationsbank.com www.bankamerica.com ots Original Text Service: BankAmericaCorporation Internet: http://www.newsaktuell.de Contact:Investors, Susan Carr, (USA) 704-386-8059, or Kevin Stitt, (USA)704-386-5667, or Media, Bob Stickler or Rick Beebe, (USA) 704-386-8465, all of BankAmerica Corporation Web Site:http://www.nationsbank.com Web Site: http://www.bankamerica.comWeb Site:http://www.nationsbank.com/newsroom/press/1999/1Q99FIN.PDF WebSite: http://www.bankamerica.com/news/1q99fin.pdf

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