Wachovia Corp.

WEI-JET HEWOctober 26

Finance Club

History and Background Info Business Segments Strength and Opportunity Risk Governance and Management Valuation Conclusion

Company

Formed in 1911 Chairman, President & CEO: G. Kennedy Thompson $500 billion in assets Fourth largest bank holding company in the U.S Four Business Segments: General Bank, Capital

Management, Wealth Management, Corporate and Investment Bank.

Focus: expense control, credit quality and productivity improvements.

Critical Success Factor

Revenue Growth Expense Efficiency Customer Loyalty Employee Engagement Corporate Governance Merger Integration

Net Income as of 2004

56%

31%

4%

9%

General Bank

CapitalManagement

WealthManagement

Corporate andInvestment Bank

Overview of Business Segments

General Bank

Customer: Individuals, small businesses, commercial enterprises, and governmental institutions

Value Proposition:1. Checking, lending and investing products and services for

customers at every stage of life 2. Knowledgeable and reliable guidance3. Specialized financial needs of businesses Strategic Focus:1. Long-term customer relationship2. Customers at multiple services

Capital Management

Proprietary nonproprietary investment products & services to retail and institutional clients

Value Proposition1. Achieve lifetime financial goals2. Emphasis on disciplined investing and

unbiased advice Strategic focus1. Creates a growing and diversified business

with balanced mix of products

Wealth Management

Private banking, trust and investment management, financial planning and insurance services to high net worth individuals, families and businesses

Value Proposition1. Fully integrated and objective approach incorporates all

disciplines 2. Strategic partnerships with all other segments Strategic Focus1. Clients’ relationship, leveraging opportunity 2. Sophisticated, leading-edge solutions

Corporate and Investment Bank Domestic and global corporate and institutional clients

in 10 key industry sectors Value Proposition1. Focus on client needs, combined with capital raising

capability and a leading treasury services platform2. Integrated team approach, breadth of products &

services, deep industry expertise Strategic focus1. Growing economic value for Wachovia shareholders

Strength and Opportunity

Modest economic growth and rising interest rates

Diversified business model to drive revenue growth through cross-business partnership

Strengthened banking market through acquisition and expansion

Strong credit quality and commercial loan growth Diversified revenue mix

Risk Management Strategy

Business Units Independent risk management function

joined by other corporate staff functions: Legal, Finance, HR and Technology

Internal Audit Risk committee

Valuation

Shares yielded 3.5% 14% discount to S&P 12-month target

price of $58 One-year-return of 17% outperformed

banking industry indices Earning growth of 22% in 2004 Forecast EPS of 4.30 for year 2005

Conclusion

4 Star Recommendation:

BUY