Wachovia Corp New (WBPS) 8-K Results of Operations and Financial Condition

Exhibit (99)(a)

	Press Release July 19, 2005

WACHOVIA EARNS RECORD $1.04 PER SHARE IN 2^nd QUARTER 2005, UP 9%

Strong expense discipline, outstanding credit quality and record customer service drive net income to record $1.65 billion

2^nd QUARTER 2005 COMPARED WITH 2^nd QUARTER 2004

• Record net income up 32 percent as revenues rose at twice the pace of expenses. Results include the impact of acquisitions.

• Merger savings and expense discipline drove a 417 basis point improvement in the overhead efficiency ratio to 59.29 percent.

• Credit quality continued to be exceptional with annualized net charge-offs of 0.09 percent of average loans and total nonperforming assets at a record low 0.44 percent of loans, foreclosed properties and loans held for sale.

• Solid sales activity, good merger integration progress and record customer satisfaction and loyalty overcame challenging industry trends.

Earnings Highlights

	Three Months Ended
	June 30,				March 31,		June 30,
(In millions, except per share data)	Amount			2005 EPS	Amount	2005 EPS	Amount	2004 EPS
Earnings
Net income (GAAP)	$	1,650		1.04	1,621	1.01	1,252	0.95
Net merger-related expenses		48		0.03	31	0.02	47	0.03
Earnings excluding net merger-related expenses	$	1,698		1.07	1,652	1.03	1,299	0.98
Financial ratios
Return on average common stockholders’ equity		14.04	%		13.92		15.49
Net interest margin (a)		3.23			3.31		3.37
Fee and other income as % of total revenue (a)		46.60			46.30		47.33
Overhead efficiency ratio (a)		59.29	%		59.86		63.46
Capital adequacy (b)
Tier 1 capital ratio		7.89	%		7.91		8.36
Total capital ratio		11.29			11.40		11.02
Leverage ratio		6.10	%		5.99		6.23
Asset quality
Allowance for loan losses as % of nonaccrual and restructured loans		332	%		300		270
Allowance for loan losses as % of loans, net		1.18			1.20		1.35
Allowance for credit losses as % of loans, net (c)		1.25			1.27		1.43
Net charge-offs as % of average loans, net		0.09			0.08		0.17
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		0.44	%		0.50		0.55

(a) Tax-equivalent.

(b) The second quarter of 2005 is based on estimates.

(c) The allowance for credit losses is the sum of the allowance for loan losses and the reserve for unfunded lending commitments.

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WACHOVIA EARNS $1.04 PER SHARE IN 2^nd QUARTER 2005, UP 9%/page 2

CHARLOTTE, N.C. — Wachovia Corp. (NYSE:WB) today reported record net income of $1.65 billion, or a record $1.04 per share, in the second quarter of 2005 compared with $1.25 billion, or 95 cents per share, in the second quarter of 2004.

Excluding after-tax net merger-related expenses of 3 cents per share in the second quarter of both years, second quarter 2005 earnings were $1.70 billion, or a record $1.07 per share, compared with $1.30 billion, or 98 cents per share, in the second quarter of 2004.

“Our team generated excellent second quarter results by focusing on the right things: serving our customers and maintaining expense discipline,” said Ken Thompson, Wachovia chairman and chief executive officer. “We’re seeing great execution on our revenue strategies and expense initiatives, which produced a dramatic improvement in our overhead efficiency ratio. Once again, our diversified business model produced record results despite the industry-wide narrowing of net interest margins and weak retail brokerage and trading environment. In addition, we’re benefiting from the smooth integration of SouthTrust, which continues on track and on budget. I’m confident we’re building a strong foundation for future growth.”

Wachovia Corporation

	Three Months Ended
(In millions)	June 30, 2005		March 31, 2005	June 30, 2004
Total revenue (Tax-equivalent)	$	6,388	6,469	5,510
Provision for credit losses		50	36	61
Noninterest expense		3,788	3,872	3,495
Net income		1,650	1,621	1,252
Average loans, net		223,881	221,175	163,642
Average core deposits	$	275,338	271,095	223,809

In the second quarter of 2005 compared with the second quarter of 2004, Wachovia:

• Increased revenue 16 percent. Revenue growth largely reflected the acquisitions of SouthTrust Corporation on November 1, 2004, and the Palmer & Cay, Inc., insurance brokerage firm on May 6, 2005.

• Higher loans and deposits, largely related to SouthTrust, boosted net interest income 17 percent.

• Fee and other income grew 14 percent. In addition to the acquisition impact, growth reflected stronger service charges, investment banking fees, asset securitizations and securities gains, partially offset by lower retail brokerage commissions and weaker trading profits.

• Achieved merger and other expense efficiencies, limiting noninterest expense growth to 8 percent.

• Had a provision for credit losses of $50 million. Net charge-offs declined 25 percent to $51 million, or an annualized 0.09 percent of average net loans. Total nonperforming assets including loans held for sale were $1.07 billion, or 0.44 percent of loans, foreclosed properties and loans held for sale at June 30, 2005.

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WACHOVIA EARNS $1.04 PER SHARE IN 2^nd QUARTER 2005, UP 9%/page 3

Lines of Business

The following discussion covers the results for Wachovia’s four core business segments and is on a segment earnings basis, which excludes net merger-related and restructuring expenses and other intangible amortization. Segment earnings are the basis on which Wachovia manages and allocates capital to its business segments. Pages 13 and 14 include a reconciliation of segment results to Wachovia’s consolidated results of operations in accordance with GAAP.

General Bank

General Bank Highlights

	Three Months Ended
(In millions)	June 30, 2005			March 31, 2005	June 30, 2004
Total revenue (Tax-equivalent)	$	3,142		3,086	2,532
Provision for credit losses		68		57	65
Noninterest expense		1,515		1,544	1,305
Segment earnings	$	988		939	740
Cash overhead efficiency ratio (Tax-equivalent)		48.18	%	50.06	51.54
Average loans, net	$	161,609		159,376	122,108
Average core deposits		205,495		201,487	166,021
Economic capital, average	$	6,981		7,063	5,167

The General Bank includes retail, small business and commercial customers. Results include the impact of the fourth quarter 2004 acquisition of SouthTrust. Key General Bank trends in the second quarter of 2005 compared with the second quarter of 2004 included:

• 24 percent revenue growth driven by 27 percent higher net interest income and 14 percent higher fee and other income, largely due to SouthTrust.

• Strength in low-cost core deposits as well as higher commercial and consumer loans largely related to SouthTrust drove the increase in net interest income.

• Increased fee and other income, in addition to SouthTrust, was driven by strong debit card interchange income, offset by continued weakness primarily in commercial service charges.

• 16 percent growth in noninterest expense due to SouthTrust.

• Strong expense management and merger efficiencies, which drove improvement in the overhead efficiency ratio to a record 48.18 percent.

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WACHOVIA EARNS $1.04 PER SHARE IN 2^nd QUARTER 2005, UP 9%/page 4

Capital Management

Capital Management Highlights

	Three Months Ended
(In millions)	June 30, 2005			March 31, 2005	June 30, 2004
Total revenue (Tax-equivalent)	$	1,337		1,336	1,360
Provision for credit losses		—		—	—
Noninterest expense		1,089		1,093	1,141
Segment earnings	$	157		154	139
Cash overhead efficiency ratio (Tax-equivalent)		81.48	%	81.81	83.90
Average loans, net	$	689		641	522
Average core deposits		31,160		32,367	25,533
Economic capital, average	$	1,394		1,412	1,380

Capital Management includes retail brokerage services and asset management. Key Capital Management trends in the second quarter of 2005 compared with the second quarter of 2004 included:

• Relatively flat revenue was offset by lower expenses to deliver 13 percent earnings growth.

• Fee and other income was dampened by sluggish retail brokerage transaction activity, which largely offset an increase in recurring and other income. Fee income in the second quarter this year was lower than a year ago by $21 million from divested businesses.

• Net interest income growth of 19 percent largely due to average core deposits growth of 22 percent primarily related to the FDIC-insured money market sweep product.

• A 5 percent decline in expenses primarily due to efficiencies gained from the now-completed retail brokerage integration, driving a 242 basis point improvement in the overhead efficiency ratio.

• Total assets under management of $254.0 billion at June 30, 2005, which were essentially stable from December 31, 2004. Positive equity mutual fund sales were offset by declining equity market valuations.

• Total brokerage client assets reached a record $655.6 billion at June 30, 2005.

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WACHOVIA EARNS $1.04 PER SHARE IN 2^nd QUARTER 2005, UP 9%/page 5

Wealth Management

Wealth Management Highlights

	Three Months Ended
(In millions)	June 30, 2005			March 31, 2005		June 30, 2004
Total revenue (Tax-equivalent)	$	329		288		272
Provision for credit losses		—		(1	)	—
Noninterest expense		222		191		193
Segment earnings	$	68		62		51
Cash overhead efficiency ratio (Tax-equivalent)		67.39	%	66.24		70.89
Average loans, net	$	13,546		12,801		10,593
Average core deposits		13,192		13,255		11,835
Economic capital, average	$	522		480		458

Wealth Management includes private banking, personal trust, investment advisory services, charitable services, financial planning and insurance brokerage. Results include the impact of the May 6, 2005, acquisition of Palmer & Cay, Inc., an insurance brokerage firm. Key Wealth Management trends in the second quarter of 2005 compared with the second quarter of 2004 included:

• Strong revenue growth driven by a 21 percent increase in both net interest income and fee and other income.

• Net interest income growth was fueled by strength in both consumer and commercial lending and growth in average core deposits. Compared with the first quarter of 2005, average core deposits were essentially flat as growth was offset by a shift in money market deposits to off-balance sheet investment alternatives.

• Fee and other income growth included $30 million from the Palmer & Cay acquisition. In addition, higher trust and investment management fees and insurance commissions offset a decline in commercial service charges.

• 15 percent expense growth, which included $26 million related to the Palmer & Cay acquisition.

• 350 basis point improvement in the overhead efficiency ratio.

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WACHOVIA EARNS $1.04 PER SHARE IN 2^nd QUARTER 2005, UP 9%/page 6

Corporate and Investment Bank

Corporate and Investment Bank Highlights

	Three Months Ended
(In millions)	June 30, 2005			March 31, 2005		June 30, 2004
Total revenue (Tax-equivalent)	$	1,272		1,534		1,286
Provision for credit losses		(8	)	(3	)	(4	)
Noninterest expense		711		732		619
Segment earnings	$	357		506		424
Cash overhead efficiency ratio (Tax-equivalent)		55.85	%	47.73		48.11
Average loans, net	$	37,972		36,916		29,552
Average core deposits		22,505		20,883		17,927
Economic capital, average	$	5,483		5,109		4,505

The Corporate and Investment Bank includes corporate lending, investment banking, and treasury and international trade finance. Key trends in Corporate and Investment Bank second quarter 2005 results compared with the second quarter of 2004 included:

• A slight decline in revenue as higher fee and other income was more than offset by lower net interest income.

• Net interest income declined 13 percent due primarily to higher funding costs resulting from the second quarter 2004 resolution of tax matters relating to our commercial leasing portfolio.

• Fee income increased 11 percent on 29 percent growth in advisory and underwriting results, driven by strong merger and acquisition advisory activity, loan syndications and investment grade underwriting, and higher other income, including growth in asset-backed/structured products.

• A 15 percent increase in noninterest expense due primarily to increased strategic hiring in key positions. Increased expense and slightly lower revenue resulted in a higher overhead efficiency ratio.

• Strong core deposit growth primarily from higher commercial mortgage servicing and international money market deposits and increased loans primarily reflecting higher leasing balances due to the income tax settlement and to SouthTrust.

• Economic capital usage increased due to higher loan balances and an increased expense base.

***

Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with retail operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $511.8 billion, market capitalization of $78.2 billion and stockholders’ equity of $47.9 billion at June 30, 2005. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve 13 million household and business relationships primarily through 3,126 offices in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, also serves clients through 699 offices in 49 states and five Latin American countries. Our Corporate and Investment Bank serves clients primarily in 10 key industry sectors nationwide. Global services are offered through 33 international offices. Online banking and brokerage products and services also are available through Wachovia.com.

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WACHOVIA EARNS $1.04 PER SHARE IN 2^nd QUARTER 2005, UP 9%/page 7

Forward-Looking Statements

This news release contains various forward-looking statements. A discussion of various factors that could cause Wachovia Corporation’s actual results to differ materially from those expressed in such forward-looking statements is included in Wachovia’s filings with the Securities and Exchange Commission, including its Current Report on Form 8-K dated July 19, 2005.

Explanation of Wachovia’s Use of Certain Non-GAAP Financial Measures

In addition to results presented in accordance with GAAP, this news release includes certain non-GAAP financial measures, including those presented on page 1 and on page 10 under the captions “Earnings Excluding Merger-Related and Restructuring Expenses” and “Earnings Excluding Merger-Related and Restructuring Expenses, and Other Intangible Amortization”, and which are reconciled to GAAP financial measures on pages 21 and 22. In addition, in this news release certain designated net interest income amounts are presented on a tax-equivalent basis, including the calculation of the overhead efficiency ratio.

Wachovia believes these non-GAAP financial measures provide information useful to investors in understanding the underlying operational performance of the company, its business and performance trends and facilitates comparisons with the performance of others in the financial services industry. Specifically, Wachovia believes the exclusion of merger-related and restructuring expenses and the cumulative effect of a change in accounting principle permits evaluation and a comparison of results for on-going business operations, and it is on this basis that Wachovia’s management internally assesses the company’s performance. Those non-operating items are excluded from Wachovia’s segment measures used internally to evaluate segment performance in accordance with GAAP because management does not consider them particularly relevant or useful in evaluating the operating performance of our business segments. In addition, because of the significant amount of deposit base intangible amortization, Wachovia believes the exclusion of this expense provides investors with consistent and meaningful comparisons to other financial services firms. Wachovia’s management makes recommendations to its board of directors about dividend payments based on reported earnings excluding merger-related and restructuring expenses, other intangible amortization and the cumulative effect of a change in accounting principle, and has communicated certain dividend payout ratio goals to investors on this basis. Management believes this payout ratio is useful to investors because it provides investors with a better understanding of and permits investors to monitor Wachovia’s dividend payout policy. Wachovia also believes the presentation of net interest income on a tax-equivalent basis ensures comparability of net interest income arising from both taxable and tax-exempt sources and is consistent with industry standards. Wachovia operates one of the largest retail brokerage businesses in our industry, and we have presented an overhead efficiency ratio excluding these brokerage services, which management believes is useful to investors in comparing the performance of our banking business with other banking companies.

Although Wachovia believes the above non-GAAP financial measures enhance investors’ understanding of its business and performance, these non-GAAP financial measures should not be considered an alternative to GAAP basis financial measures.

Earnings Conference Call and Supplemental Materials

Wachovia CEO Ken Thompson and CFO Bob Kelly will review Wachovia’s second quarter 2005 results in a conference call and audio webcast beginning at 10 a.m. Eastern Daylight Savings Time today. This review may include a discussion of certain non-GAAP financial measures. Supplemental materials relating to second quarter results, which also include a reconciliation of any non-GAAP measures to Wachovia’s reported financials, are available on the Internet at Wachovia.com/investor, and investors are encouraged to access these materials in advance of the conference call.

Webcast Instructions: To gain access to the webcast, which will be “listen-only,” go to Wachovia.com/investor and click on the link “Wachovia Second Quarter Earnings Audio Webcast.” In order to listen to the webcast, you will need to download either Real Player or Media Player.

Teleconference Instructions: The telephone number for the conference call is 1-888-357-9787 for U.S. callers or 1-706-679-7342 for international callers. You will be asked to tell the answering coordinator your name and the name of your firm. Mention the conference Access Code: Wachovia.

Replay: Tuesday, July 19, at 12 p.m. EDT and continuing through 5 p.m. EDT Friday, August 19. Replay telephone number is 1-706-645-9291; access code 6891035.

***

Investors seeking further information should contact the Investor Relations team: Alice Lehman at 704-374-4139, Ellen Taylor at 704-383-1381 or Jeff Richardson at 704-383-8250. Media seeking further information should contact the Corporate Media Relations team: Mary Eshet at 704-383-7777 or Christy Phillips at 704-383-8178.

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WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL TABLES

TABLE OF CONTENTS

	PAGE
Financial Highlights—Five Quarters Ended June 30, 2005	9
Other Financial Data—Five Quarters Ended June 30, 2005	10
Consolidated Statements of Income—Five Quarters Ended June 30, 2005	11
Consolidated Statements of Income—Six Months Ended June 30, 2005 and 2004	12
Business Segments—Three Months Ended June 30, 2005 and March 31, 2005	13
Business Segments—Three Months Ended June 30, 2004	14
Loans—On-Balance Sheet, and Managed and Servicing Portfolios—Five Quarters Ended June 30, 2005	15
Allowance for Loan Losses and Nonperforming Assets—Five Quarters Ended June 30, 2005	16
Consolidated Balance Sheets—Five Quarters Ended June 30, 2005	17
Net Interest Income Summaries—Five Quarters Ended June 30, 2005	18-19
Net Interest Income Summaries—Six Months Ended June 30, 2005 and 2004	20
Reconciliation of Certain Non-GAAP Financial Measures—Five Quarters Ended June 30, 2005	21-22

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WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

	2005				2004
(Dollars in millions, except per share data)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter		Second Quarter
EARNINGS SUMMARY
Net interest income (GAAP)	$	3,358		3,413	3,297	2,965		2,838
Tax-equivalent adjustment		53		61	60	63		65
Net interest income (Tax-equivalent)		3,411		3,474	3,357	3,028		2,903
Fee and other income		2,977		2,995	2,804	2,601		2,607
Total revenue (Tax-equivalent)		6,388		6,469	6,161	5,629		5,510
Provision for credit losses		50		36	109	43		61
Other noninterest expense		3,591		3,696	3,605	3,445		3,286
Merger-related and restructuring expenses		90		61	116	127		102
Other intangible amortization		107		115	113	99		107
Total noninterest expense		3,788		3,872	3,834	3,671		3,495
Minority interest in income of consolidated subsidiaries		71		64	54	28		45
Income before income taxes (Tax-equivalent)		2,479		2,497	2,164	1,887		1,909
Tax-equivalent adjustment		53		61	60	63		65
Income taxes		776		815	656	561		592
Net income	$	1,650		1,621	1,448	1,263		1,252
Diluted earnings per common share	$	1.04		1.01	0.95	0.96		0.95
Return on average common stockholders’ equity		14.04	%	13.92	13.50	15.12		15.49
Return on average assets		1.31		1.31	1.22	1.18		1.22
Overhead efficiency ratio		59.29	%	59.86	62.23	65.20		63.46
Operating leverage	$	5		269	368	(55	)	(11	)
ASSET QUALITY
Allowance for loan losses as % of loans, net		1.18	%	1.20	1.23	1.33		1.35
Allowance for loan losses as % of nonperforming assets		284		262	251	258		241
Allowance for credit losses as % of loans, net		1.25		1.27	1.30	1.41		1.43
Net charge-offs as % of average loans, net		0.09		0.08	0.23	0.15		0.17
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		0.44	%	0.50	0.53	0.50		0.55
CAPITAL ADEQUACY (a)
Tier I capital ratio		7.89	%	7.91	8.01	8.34		8.36
Total capital ratio		11.29		11.40	11.11	11.22		11.02
Leverage ratio		6.10	%	5.99	6.38	6.21		6.23
OTHER DATA
Average diluted common shares (In millions)		1,591		1,603	1,518	1,316		1,320
Actual common shares (In millions)		1,577		1,576	1,588	1,308		1,309
Dividends paid per common share	$	0.46		0.46	0.46	0.40		0.40
Dividend payout ratio on common shares		44.23	%	45.54	48.42	41.67		42.11
Book value per common share	$	30.37		29.48	29.79	25.92		24.93
Common stock price		49.60		50.91	52.60	46.95		44.50
Market capitalization	$	78,236		80,256	83,537	61,395		58,268
Common stock price to book value		163	%	173	177	181		178
FTE employees		93,385		93,669	96,030	84,503		85,042
Total financial centers/brokerage offices		3,825		3,970	3,971	3,215		3,239
ATMs		5,089		5,234	5,321	4,395		4,396

(a) The second quarter of 2005 is based on estimates.

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WACHOVIA CORPORATION AND SUBSIDIARIES

OTHER FINANCIAL DATA

(Unaudited)

	2005				2004
(In millions)	Second Quarter			First Quarter	Fourth Quarter	Third Quarter		Second Quarter
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES (a) (b)
Return on average common stockholders’ equity		14.43	%	14.19	13.95	15.72		16.04
Return on average assets		1.35		1.34	1.26	1.24		1.27
Overhead efficiency ratio		57.87		58.92	60.34	62.96		61.60
Overhead efficiency ratio excluding brokerage		52.87	%	54.14	55.01	57.56		55.50
Operating leverage	$	35		214	358	(30	)	(8	)
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, AND OTHER INTANGIBLE AMORTIZATION (a) (b) (c)
Dividend payout ratio on common shares		41.44	%	42.59	44.23	38.10		38.83
Return on average tangible common stockholders’ equity		29.50		28.86	26.59	26.28		27.15
Return on average tangible assets		1.48		1.46	1.38	1.33		1.38
Overhead efficiency ratio		56.19		57.15	58.50	61.20		59.66
Overhead efficiency ratio excluding brokerage		50.86	%	52.03	52.78	55.43		53.12
Operating leverage	$	27		215	373	(38	)	(13	)
OTHER FINANCIAL DATA
Net interest margin		3.23	%	3.31	3.37	3.36		3.37
Fee and other income as % of total revenue		46.60		46.30	45.50	46.21		47.33
Effective income tax rate		32.02		33.42	31.20	30.71		32.19
Tax rate (Tax-equivalent) (d)		33.50	%	35.05	33.14	33.04		34.44
AVERAGE BALANCE SHEET DATA
Commercial loans, net	$	131,195		127,703	116,599	96,860		92,107
Consumer loans, net		92,686		93,472	79,928	71,692		71,535
Loans, net		223,881		221,175	196,527	168,552		163,642
Earning assets		422,534		421,047	397,490	359,909		344,847
Total assets		503,361		500,486	472,431	424,399		411,074
Core deposits		275,338		271,095	260,627	232,989		223,809
Total deposits		297,194		294,674	280,051	248,245		238,692
Interest-bearing liabilities		367,828		365,516	343,489	314,310		301,652
Stockholders’ equity	$	47,114		47,231	42,644	33,246		32,496
PERIOD-END BALANCE SHEET DATA
Commercial loans, net	$	136,115		134,696	131,196	102,524		101,581
Consumer loans, net		94,172		92,570	92,644	71,980		71,336
Loans, net		230,287		227,266	223,840	174,504		172,917
Goodwill and other intangible assets
Goodwill		21,861		21,635	21,526	11,481		11,481
Deposit base		861		951	1,048	484		568
Customer relationships		427		387	443	372		387
Tradename		90		90	90	90		90
Total assets		511,840		506,833	493,324	436,698		418,441
Core deposits		275,281		273,883	274,588	237,315		228,204
Total deposits		299,910		297,657	295,053	252,981		243,380
Stockholders’ equity	$	47,904		46,467	47,317	33,897		32,646

(a) These financial measures are calculated by excluding from GAAP computed net income presented on page 9, $48 million, $31 million, $53 million, $55 million and $47 million in the second and first quarters of 2005, and in the fourth, third and second quarters of 2004, respectively, of after-tax net merger-related and restructuring expenses.

(b) See page 9 for the most directly comparable GAAP financial measure and pages 21 and 22 for a more detailed reconciliation.

(c) These financial measures are calculated by excluding from GAAP computed net income presented on page 9, $69 million, $72 million, $74 million, $62 million and $67 million in the second and first quarters of 2005, and in the fourth, third and second quarters of 2004, respectively, of after-tax deposit base and other intangible amortization.

(d) The tax-equivalent tax rate applies to fully tax-equivalized revenues.

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WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	2005				2004
(In millions, except per share data)	Second Quarter		First Quarter		Fourth Quarter		Third Quarter		Second Quarter
INTEREST INCOME
Interest and fees on loans	$	3,362	3,174		2,814		2,393		2,316
Interest and dividends on securities		1,437	1,426		1,232		1,156		1,110
Trading account interest		354	378		388		325		237
Other interest income		549	475		535		427		356
Total interest income		5,702	5,453		4,969		4,301		4,019
INTEREST EXPENSE
Interest on deposits		1,221	1,050		860		691		654
Interest on short-term borrowings		670	601		492		396		316
Interest on long-term debt		453	389		320		249		211
Total interest expense		2,344	2,040		1,672		1,336		1,181
Net interest income		3,358	3,413		3,297		2,965		2,838
Provision for credit losses		50	36		109		43		61
Net interest income after provision for credit losses		3,308	3,377		3,188		2,922		2,777
FEE AND OTHER INCOME
Service charges		528	513		519		499		489
Other banking fees		355	351		343		313		301
Commissions		603	599		620		568		657
Fiduciary and asset management fees		728	714		700		668		700
Advisory, underwriting and other investment banking fees		257	233		271		237		203
Trading account profits (losses)		17	99		(16	)	(60	)	34
Principal investing		41	59		7		201		15
Securities gains (losses)		136	(2	)	23		(71	)	36
Other income		312	429		337		246		172
Total fee and other income		2,977	2,995		2,804		2,601		2,607
NONINTEREST EXPENSE
Salaries and employee benefits		2,324	2,401		2,239		2,118		2,164
Occupancy		271	250		260		234		224
Equipment		269	265		272		268		253
Advertising		48	44		51		46		48
Communications and supplies		158	162		163		149		157
Professional and consulting fees		155	127		179		134		126
Other intangible amortization		107	115		113		99		107
Merger-related and restructuring expenses		90	61		116		127		102
Sundry expense		366	447		441		496		314
Total noninterest expense		3,788	3,872		3,834		3,671		3,495
Minority interest in income of consolidated subsidiaries		71	64		54		28		45
Income before income taxes		2,426	2,436		2,104		1,824		1,844
Income taxes		776	815		656		561		592
Net income	$	1,650	1,621		1,448		1,263		1,252
PER COMMON SHARE DATA
Basic earnings	$	1.05	1.03		0.97		0.97		0.96
Diluted earnings		1.04	1.01		0.95		0.96		0.95
Cash dividends	$	0.46	0.46		0.46		0.40		0.40
AVERAGE COMMON SHARES
Basic		1,564	1,571		1,487		1,296		1,300
Diluted		1,591	1,603		1,518		1,316		1,320

PAGE 12

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Six Months Ended June 30,
(In millions, except per share data)	2005		2004
INTEREST INCOME
Interest and fees on loans	$	6,536	4,651
Interest and dividends on securities		2,863	2,251
Trading account interest		732	434
Other interest income		1,024	682
Total interest income		11,155	8,018
INTEREST EXPENSE
Interest on deposits		2,271	1,302
Interest on short-term borrowings		1,271	615
Interest on long-term debt		842	402
Total interest expense		4,384	2,319
Net interest income		6,771	5,699
Provision for credit losses		86	105
Net interest income after provision for credit losses		6,685	5,594
FEE AND OTHER INCOME
Service charges		1,041	960
Other banking fees		706	570
Commissions		1,202	1,413
Fiduciary and asset management fees		1,442	1,404
Advisory, underwriting and other investment banking fees		490	403
Trading account profits		116	111
Principal investing		100	53
Securities gains		134	38
Other income		741	422
Total fee and other income		5,972	5,374
NONINTEREST EXPENSE
Salaries and employee benefits		4,725	4,346
Occupancy		521	453
Equipment		534	512
Advertising		92	96
Communications and supplies		320	308
Professional and consulting fees		282	235
Other intangible amortization		222	219
Merger-related and restructuring expenses		151	201
Sundry expense		813	791
Total noninterest expense		7,660	7,161
Minority interest in income of consolidated subsidiaries		135	102
Income before income taxes		4,862	3,705
Income taxes		1,591	1,202
Net income	$	3,271	2,503
PER COMMON SHARE DATA
Basic earnings	$	2.09	1.92
Diluted earnings		2.05	1.89
Cash dividends	$	0.92	0.80
AVERAGE COMMON SHARES
Basic		1,567	1,301
Diluted		1,597	1,323

PAGE 13

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended June 30, 2005
(In millions)	General Bank		Capital Management		Wealth Management		Corporate and Investment Bank		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	2,407	160		143		522		179		(53	)	3,358
Fee and other income		686	1,189		185		789		128		—		2,977
Intersegment revenue		49	(12	)	1		(39	)	1		—		—
Total revenue (a)		3,142	1,337		329		1,272		308		(53	)	6,335
Provision for credit losses		68	—		—		(8	)	(10	)	—		50
Noninterest expense		1,515	1,089		222		711		161		90		3,788
Minority interest		—	—		—		—		85		(14	)	71
Income taxes (benefits)		561	91		39		185		(72	)	(28	)	776
Tax-equivalent adjustment		10	—		—		27		16		(53	)	—
Net income	$	988	157		68		357		128		(48	)	1,650
	Three Months Ended March 31, 2005
(In millions)	General Bank		Capital Management		Wealth Management		Corporate and Investment Bank		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED
Net interest income (a)	$	2,359	159		140		590		226		(61	)	3,413
Fee and other income		684	1,189		146		978		(2	)	—		2,995
Intersegment revenue		43	(12	)	2		(34	)	1		—		—
Total revenue (a)		3,086	1,336		288		1,534		225		(61	)	6,408
Provision for credit losses		57	—		(1	)	(3	)	(17	)	—		36
Noninterest expense		1,544	1,093		191		732		251		61		3,872
Minority interest		—	—		—		—		74		(10	)	64
Income taxes (benefits)		536	89		36		271		(97	)	(20	)	815
Tax-equivalent adjustment		10	—		—		28		23		(61	)	—
Net income (loss)	$	939	154		62		506		(9	)	(31	)	1,621

PAGE 14

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended June 30, 2004
(In millions)	General Bank		Capital Management		Wealth Management	Corporate and Investment Bank		Parent		Net Merger- Related and Restructuring Expenses (b)		Total
CONSOLIDATED							��
Net interest income (a)	$	1,891	135		118	603		156		(65	)	2,838
Fee and other income		601	1,236		153	713		(96	)	—		2,607
Intersegment revenue		40	(11	)	1	(30	)	—		—		—
Total revenue (a)		2,532	1,360		272	1,286		60		(65	)	5,445
Provision for credit losses		65	—		—	(4	)	—		—		61
Noninterest expense		1,305	1,141		193	619		135		102		3,495
Minority interest		—	—		—	—		70		(25	)	45
Income taxes (benefits)		411	80		28	216		(113	)	(30	)	592
Tax-equivalent adjustment		11	—		—	31		23		(65	)	—
Net income (loss)	$	740	139		51	424		(55	)	(47	)	1,252

(a) Tax-equivalent.

(b) The tax-equivalent amounts are eliminated herein in order for “Total” amounts to agree with amounts appearing in theConsolidated Statements of Income.

PAGE 15

WACHOVIA CORPORATION AND SUBSIDIARIES

LOANS—ON-BALANCE SHEET, AND MANAGED AND SERVICING PORTFOLIOS

(Unaudited)

	2005			2004
(In millions)	Second Quarter		First Quarter	Fourth Quarter	Third Quarter	Second Quarter
ON-BALANCE SHEET LOAN PORTFOLIO COMMERCIAL
Commercial, financial and agricultural	$	80,528	78,669	75,095	59,271	58,340
Real estate—construction and other		13,216	12,713	12,673	6,985	6,433
Real estate—mortgage		19,724	20,707	20,742	14,771	14,927
Lease financing		24,836	25,013	25,000	24,042	23,894
Foreign		7,549	7,504	7,716	7,402	8,075
Total commercial		145,853	144,606	141,226	112,471	111,669
CONSUMER
Real estate secured		76,213	74,631	74,161	54,965	53,759
Student loans		10,828	10,795	10,468	10,207	9,838
Installment loans		6,783	6,808	7,684	6,410	7,330
Total consumer		93,824	92,234	92,313	71,582	70,927
Total loans		239,677	236,840	233,539	184,053	182,596
Unearned income		9,390	9,574	9,699	9,549	9,679
Loans, net (On-balance sheet)	$	230,287	227,266	223,840	174,504	172,917
MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio	$	145,853	144,606	141,226	112,471	111,669
Securitized loans—off-balance sheet		1,293	1,402	1,734	1,823	1,868
Loans held for sale		1,783	1,117	2,112	1,993	1,887
Total commercial		148,929	147,125	145,072	116,287	115,424
CONSUMER
Real estate secured
On-balance sheet loan portfolio		76,213	74,631	74,161	54,965	53,759
Securitized loans—off-balance sheet		10,199	6,979	7,570	6,567	7,194
Securitized loans included in securities		4,426	4,626	4,838	8,909	9,506
Loans held for sale		11,923	11,925	10,452	15,602	14,003
Total real estate secured		102,761	98,161	97,021	86,043	84,462
Student
On-balance sheet loan portfolio		10,828	10,795	10,468	10,207	9,838
Securitized loans—off-balance sheet		382	423	463	554	612
Loans held for sale		16	65	128	160	367
Total student		11,226	11,283	11,059	10,921	10,817
Installment
On-balance sheet loan portfolio		6,783	6,808	7,684	6,410	7,330
Securitized loans—off-balance sheet		2,662	1,930	2,184	2,489	1,794
Securitized loans included in securities		163	155	195	195	130
Loans held for sale		809	1,066	296	—	—
Total installment		10,417	9,959	10,359	9,094	9,254
Total consumer		124,404	119,403	118,439	106,058	104,533
Total managed portfolio	$	273,333	266,528	263,511	222,345	219,957
SERVICING PORTFOLIO (b)
Commercial	$	152,923	140,493	136,578	130,313	108,207
Consumer	$	53,261	46,552	40,053	31,549	24,475

(a) The managed portfolio includes the on-balance sheet loan portfolio, loans securitized for which the assets are classified in securities on-balance sheet, loans held for sale on-balance sheet and the off-balance sheet portfolio of securitized loans sold, where we service the loans.

(b) The servicing portfolio consists of third party commercial and consumer loans for which our sole function is that of servicing the loans for the third parties.

PAGE 16

WACHOVIA CORPORATION AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS

(Unaudited)

	2005					2004
(In millions)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
ALLOWANCE FOR LOAN LOSSES (a)
Balance, beginning of period	$	2,732		2,757		2,324		2,331		2,338
Provision for credit losses		48		33		95		63		73
Provision for credit losses relating to loans transferred to loans held for sale or sold		—		1		(6	)	(8	)	(9	)
Balance of acquired entities at purchase date		—		—		510		—		—
Allowance relating to loans acquired, transferred to loans held for sale or sold		(11	)	(13	)	(51	)	3		(3	)
Net charge-offs		(51	)	(46	)	(115	)	(65	)	(68	)
Balance, end of period	$	2,718		2,732		2,757		2,324		2,331
as % of loans, net		1.18	%	1.20		1.23		1.33		1.35
as % of nonaccrual and restructured loans (b)		332	%	300		289		291		270
as % of nonperforming assets (b)		284	%	262		251		258		241
LOAN LOSSES
Commercial, financial and agricultural	$	35		26		82		50		41
Commercial real estate—construction and mortgage		—		1		4		3		1
Consumer		75		67		74		70		66
Total loan losses		110		94		160		123		108
LOAN RECOVERIES
Commercial, financial and agricultural		25		26		27		41		23
Commercial real estate—construction and mortgage		1		—		—		1		—
Consumer		33		22		18		16		17
Total loan recoveries		59		48		45		58		40
Net charge-offs	$	51		46		115		65		68
Commercial loans net charge-offs as % of average commercial loans, net (c)		0.03	%	—		0.20		0.05		0.08
Consumer loans net charge-offs as % of average consumer loans, net (c)		0.18		0.19		0.28		0.30		0.28
Total net charge-offs as % of average loans, net (c)		0.09	%	0.08		0.23		0.15		0.17
NONPERFORMING ASSETS
Nonaccrual loans
Commercial, financial and agricultural	$	497		527		585		534		610
Commercial real estate—construction and mortgage		88		131		127		42		33
Consumer real estate secured		221		239		230		211		207
Installment loans		13		13		13		11		13
Total nonaccrual loans		819		910		955		798		863
Foreclosed properties (d)		138		132		145		101		104
Total nonperforming assets	$	957		1,042		1,100		899		967
Nonperforming loans included in loans held for sale (e)	$	111		159		157		57		68
Nonperforming assets included in loans and in loans held for sale	$	1,068		1,201		1,257		956		1,035
as % of loans, net, and foreclosed properties (b)		0.42	%	0.46		0.49		0.51		0.56
as % of loans, net, foreclosed properties and loans held for sale (e)		0.44	%	0.50		0.53		0.50		0.55
Accruing loans past due 90 days	$	521		510		522		428		419

(a) At June 30, 2005, the reserve for unfunded lending commitments was $158 million.

(b) These ratios do not include nonperforming loans included in loans held for sale.

(c) Annualized.

(d) Restructured loans are not significant.

(e) These ratios reflect nonperforming loans included in loans held for sale. Loans held for sale are recorded at the lower of cost or market value, and accordingly, the amounts shown and included in the ratios are net of the transferred allowance for loan losses and the lower of cost or market value adjustments.

PAGE 17

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS

(Unaudited)

	2005					2004
(In millions, except per share data)	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
ASSETS
Cash and due from banks	$	12,464		12,043		11,714		10,355		10,701
Interest-bearing bank balances		2,852		1,285		4,441		7,664		2,059
Federal funds sold and securities purchased under resale agreements		22,528		24,899		22,436		30,629		21,970
Total cash and cash equivalents		37,844		38,227		38,591		48,648		34,730
Trading account assets		46,519		47,149		45,932		45,129		39,659
Securities		117,906		116,731		110,597		102,157		102,934
Loans, net of unearned income		230,287		227,266		223,840		174,504		172,917
Allowance for loan losses		(2,718	)	(2,732	)	(2,757	)	(2,324	)	(2,331	)
Loans, net		227,569		224,534		221,083		172,180		170,586
Loans held for sale		14,531		14,173		12,988		17,755		16,257
Premises and equipment		5,354		5,260		5,268		4,150		4,522
Due from customers on acceptances		826		826		718		563		703
Goodwill		21,861		21,635		21,526		11,481		11,481
Other intangible assets		1,378		1,428		1,581		946		1,045
Other assets		38,052		36,870		35,040		33,689		36,524
Total assets	$	511,840		506,833		493,324		436,698		418,441
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		63,079		61,626		64,197		52,524		51,613
Interest-bearing deposits		236,831		236,031		230,856		200,457		191,767
Total deposits		299,910		297,657		295,053		252,981		243,380
Short-term borrowings		75,726		73,401		63,406		67,589		66,360
Bank acceptances outstanding		859		866		755		570		708
Trading account liabilities		19,827		22,418		21,709		22,704		20,327
Other liabilities		15,750		15,281		15,507		14,838		15,321
Long-term debt		49,006		47,932		46,759		41,444		37,022
Total liabilities		461,078		457,555		443,189		400,126		383,118
Minority interest in net assets of consolidated subsidiaries		2,858		2,811		2,818		2,675		2,677
STOCKHOLDERS’ EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at June 30, 2005		—		—		—		—		—
Common stock, $3.33 1/3 par value; authorized 3 billion shares, outstanding 1.577 billion shares at June 30, 2005		5,258		5,255		5,294		4,359		4,365
Paid-in capital		31,038		30,976		31,120		18,095		17,920
Retained earnings		11,079		10,319		10,178		10,449		9,890
Accumulated other comprehensive income, net		529		(83	)	725		994		471
Total stockholders’ equity		47,904		46,467		47,317		33,897		32,646
Total liabilities and stockholders’ equity	$	511,840		506,833		493,324		436,698		418,441

PAGE 18

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	SECOND QUARTER 2005							FIRST QUARTER 2005
(In millions)	Average Balances			Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
ASSETS
Interest-bearing bank balances	$	2,649			20	3.07	%	$	2,484		16	2.62	%
Federal funds sold and securities purchased under resale agreements		24,676			189	3.08			24,272		153	2.55
Trading account assets		31,879			377	4.73			35,147		402	4.59
Securities		115,006			1,469	5.11			114,961		1,477	5.15
Loans
Commercial
Commercial, financial and agricultural		80,213			1,084	5.42			76,651		960	5.08
Real estate—construction and other		12,885			177	5.53			12,608		156	5.01
Real estate—mortgage		20,204			288	5.71			20,739		271	5.31
Lease financing		10,252			183	7.11			10,513		182	6.94
Foreign		7,641			68	3.55			7,192		58	3.28
			��
Total commercial		131,195			1,800	5.50			127,703		1,627	5.16
Consumer
Real estate secured		74,799			1,072	5.74			74,658		1,037	5.57
Student loans		10,995			129	4.72			11,003		120	4.41
Installment loans		6,892			115	6.75			7,811		122	6.31
Total consumer		92,686			1,316	5.69			93,472		1,279	5.49
Total loans		223,881			3,116	5.58			221,175		2,906	5.30
Loans held for sale		14,024			194	5.51			12,869		166	5.19
Other earning assets		10,419			125	4.84			10,139		115	4.58
Total earning assets excluding derivatives		422,534			5,490	5.20			421,047		5,235	5.00
Risk management derivatives (a)		—			265	0.26			—		279	0.27
Total earning assets including derivatives		422,534			5,755	5.46			421,047		5,514	5.27
Cash and due from banks		12,389							12,661
Other assets		68,438							66,778
Total assets	$	503,361						$	500,486
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		80,113			194	0.97			81,071		161	0.81
Money market accounts		94,990			455	1.92			93,477		357	1.55
Other consumer time		38,064			273	2.87			36,005		239	2.70
Foreign		11,857			81	2.75			10,996		61	2.26
Other time		9,999			78	3.09			12,583		83	2.67
Total interest-bearing deposits		235,023			1,081	1.84			234,132		901	1.56
Federal funds purchased and securities sold under repurchase agreements		53,984			375	2.79			51,395		312	2.46
Commercial paper		13,365			97	2.91			13,553		82	2.45
Securities sold short		10,648			92	3.49			12,681		102	3.25
Other short-term borrowings		6,694			30	1.82			6,370		26	1.63
Long-term debt		48,114			528	4.39			47,385		493	4.17
Total interest-bearing liabilities excluding derivatives		367,828			2,203	2.40			365,516		1,916	2.12
Risk management derivatives (a)		—			141	0.16			—		124	0.14
Total interest-bearing liabilities including derivatives		367,828			2,344	2.56			365,516		2,040	2.26
Noninterest-bearing deposits		62,171							60,542
Other liabilities		26,248							27,197
Stockholders' equity		47,114							47,231
Total liabilities and stockholders’ equity	$	503,361						$	500,486
Interest income and rate earned—including derivatives				$	5,755	5.46	%			$	5,514	5.27	%
Interest expense and equivalent rate paid—including derivatives					2,344	2.23					2,040	1.96
Net interest income and margin—including derivatives				$	3,411	3.23	%			$	3,474	3.31	%

(a) The rates earned and the rates paid on risk management derivatives are based on off-balance sheet notional amounts. The fair value of these instruments is included in other assets and other liabilities.

PAGE 19

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

FOURTH QUARTER 2004						THIRD QUARTER 2004						SECOND QUARTER 2004
Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
$	3,909		18	1.85	%	$	3,153		12	1.52	%	$	4,015		11	1.13	%
	24,722		123	1.99			26,419		96	1.44			23,800		62	1.05
	36,517		411	4.49			32,052		348	4.34			26,135		260	3.98
	103,879		1,297	5.00			101,493		1,237	4.88			100,209		1,196	4.77
	69,394		836	4.79			58,278		642	4.40			56,648		599	4.25
	10,537		120	4.53			6,683		67	4.02			6,309		56	3.56
	19,035		237	4.95			14,877		170	4.54			15,029		158	4.21
	10,185		180	7.07			9,692		178	7.33			7,011		180	10.28
	7,448		58	3.10			7,330		47	2.51			7,110		41	2.32
	116,599		1,431	4.88			96,860		1,104	4.54			92,107		1,034	4.51
	62,083		853	5.49			54,288		732	5.38			52,389		691	5.29
	10,560		107	4.04			10,145		97	3.80			9,941		90	3.63
	7,285		111	6.12			7,259		107	5.86			9,205		126	5.48
	79,928		1,071	5.35			71,692		936	5.21			71,535		907	5.08
	196,527		2,502	5.08			168,552		2,040	4.83			163,642		1,941	4.76
	21,405		261	4.89			17,119		186	4.34			15,603		161	4.12
	10,531		104	3.89			11,121		96	3.43			11,443		82	2.91
	397,490		4,716	4.74			359,909		4,015	4.45			344,847		3,713	4.32
	—		313	0.31			—		349	0.39			—		371	0.43
	397,490		5,029	5.05			359,909		4,364	4.84			344,847		4,084	4.75
	11,870						11,159						11,254
	63,071						53,331						54,973
$	472,431					$	424,399					$	411,074
	79,476		128	0.64			73,171		93	0.51			70,205		78	0.45
	90,382		271	1.19			81,525		197	0.96			76,850		172	0.90
	32,540		212	2.58			26,860		180	2.68			26,288		176	2.69
	9,486		46	1.92			7,453		27	1.42			7,110		20	1.14
	9,938		56	2.31			7,803		39	1.98			7,773		34	1.76
	221,822		713	1.28			196,812		536	1.08			188,226		480	1.03
	47,264		233	1.96			47,052		164	1.39			46,620		116	1.00
	11,840		58	1.94			12,065		43	1.42			12,382		32	1.04
	12,694		102	3.18			12,388		96	3.09			10,571		73	2.78
	5,859		19	1.33			6,042		15	0.91			6,013		11	0.80
	44,010		443	4.02			39,951		404	4.05			37,840		378	3.99
	343,489		1,568	1.82			314,310		1,258	1.60			301,652		1,090	1.45
	—		104	0.12			—		78	0.09			—		91	0.12
	343,489		1,672	1.94			314,310		1,336	1.69			301,652		1,181	1.57
	58,229						51,433						50,466
	28,069						25,410						26,460
	42,644						33,246						32,496
$	472,431					$	424,399					$	411,074
		$	5,029	5.05	%			$	4,364	4.84	%			$	4,084	4.75	%
			1,672	1.68					1,336	1.48					1,181	1.38
		$	3,357	3.37	%			$	3,028	3.36	%			$	2,903	3.37	%

PAGE 20

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	SIX MONTHS ENDED 2005						SIX MONTHS ENDED 2004
(In millions)	Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
ASSETS
Interest-bearing bank balances	$	2,567		36	2.85	%	$	3,626		21	1.15	%
Federal funds sold and securities purchased under resale agreements		24,475		342	2.82			24,303		123	1.02
Trading account assets		33,504		779	4.66			23,546		480	4.08
Securities		114,983		2,946	5.13			99,216		2,417	4.87
Loans
Commercial
Commercial, financial and agricultural		78,442		2,044	5.25			56,062		1,175	4.21
Real estate—construction and other		12,747		333	5.28			6,166		109	3.54
Real estate—mortgage		20,470		559	5.51			15,135		318	4.22
Lease financing		10,382		365	7.02			6,978		363	10.40
Foreign		7,418		126	3.42			6,897		82	2.40
Total commercial		129,459		3,427	5.33			91,238		2,047	4.51
Consumer
Real estate secured		74,729		2,109	5.65			51,634		1,396	5.42
Student loans		10,999		249	4.56			9,425		168	3.58
Installment loans		7,349		237	6.52			9,115		256	5.64
Total consumer		93,077		2,595	5.59			70,174		1,820	5.20
Total loans		222,536		6,022	5.44			161,412		3,867	4.81
Loans held for sale		13,450		360	5.35			14,181		292	4.12
Other earning assets		10,279		240	4.71			11,299		166	2.96
Total earning assets excluding derivatives		421,794		10,725	5.11			337,583		7,366	4.37
Risk management derivatives (a)		—		544	0.26			—		779	0.47
Total earning assets including derivatives		421,794		11,269	5.37			337,583		8,145	4.84
Cash and due from banks		12,524						11,105
Other assets		67,613						56,193
Total assets	$	501,931					$	404,881
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		80,589		355	0.89			67,786		148	0.44
Money market accounts		94,238		812	1.74			73,029		326	0.90
Other consumer time		37,040		512	2.79			26,891		365	2.73
Foreign		11,429		142	2.51			7,392		42	1.16
Other time		11,284		161	2.86			7,724		68	1.76
Total interest-bearing deposits		234,580		1,982	1.70			182,822		949	1.04
Federal funds purchased and securities sold under repurchase agreements		52,697		687	2.63			47,486		240	1.02
Commercial paper		13,458		179	2.68			12,117		62	1.03
Securities sold short		11,659		194	3.36			9,491		120	2.54
Other short-term borrowings		6,532		56	1.73			6,225		21	0.69
Long-term debt		47,752		1,021	4.28			37,555		742	3.95
Total interest-bearing liabilities excluding derivatives		366,678		4,119	2.26			295,696		2,134	1.45
Risk management derivatives (a)		—		265	0.15			—		185	0.13
Total interest-bearing liabilities including derivatives		366,678		4,384	2.41			295,696		2,319	1.58
Noninterest-bearing deposits		61,361						48,535
Other liabilities		26,720						28,034
Stockholders' equity		47,172						32,616
Total liabilities and stockholders’ equity	$	501,931					$	404,881
Interest income and rate earned—including derivatives			$	11,269	5.37	%			$	8,145	4.84	%
Interest expense and equivalent rate paid—including derivatives				4,384	2.10					2,319	1.38
Net interest income and margin—including derivatives			$	6,885	3.27	%			$	5,826	3.46	%

(a) The rates earned and the rates paid on risk management derivatives are based on off-balance sheet notional amounts. The fair value of these instruments is included in other assets and other liabilities.

PAGE 21

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2005					2004
(In millions, except per share data)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
NET INCOME
Net income(GAAP)	A	$	1,650		1,621		1,448		1,263		1,252
After tax merger-related and restructuring expenses(GAAP)			48		31		53		55		47
Net income, excluding after tax merger-related and restructuring expenses	B		1,698		1,652		1,501		1,318		1,299
After tax other intangible amortization(GAAP)			69		72		74		62		67
Net income, excluding after tax merger-related and restructuring expenses, and other intangible amortization	C	$	1,767		1,724		1,575		1,380		1,366
RETURN ON AVERAGE COMMON STOCKHOLDERS’ EQUITY
Average common stockholders’ equity(GAAP)	D	$	47,114		47,231		42,644		33,246		32,496
Merger-related and restructuring expenses(GAAP)			52		11		169		116		69
Average common stockholders’ equity, excluding merger-related and restructuring expenses	E		47,166		47,242		42,813		33,362		32,565
Average intangible assets(GAAP)	F		(23,148	)	(23,020	)	(19,257	)	(12,473	)	(12,326	)
Average common stockholders’ equity, excluding merger-related and restructuring expenses, and other intangible amortization	G	$	24,018		24,222		23,556		20,889		20,239
Return on average common stockholders’ equity
GAAP	A/D		14.04	%	13.92		13.50		15.12		15.49
Excluding merger-related and restructuring expenses	B/E		14.43		14.19		13.95		15.72		16.04
Return on average tangible common stockholders’ equity
GAAP	A/D+F		27.61		27.16		24.62		24.20		24.96
Excluding merger-related and restructuring expenses, and other intangible amortization	C/G		29.50	%	28.86		26.59		26.28		27.15
RETURN ON AVERAGE ASSETS
Average assets(GAAP)	H	$	503,361		500,486		472,431		424,399		411,074
Average intangible assets(GAAP)			(23,148	)	(23,020	)	(19,257	)	(12,473	)	(12,326	)
Average tangible assets(GAAP)	I		480,213		477,466		453,174		411,926		398,748
Average assets(GAAP)			503,361		500,486		472,431		424,399		411,074
Merger-related and restructuring expenses(GAAP)			52		11		169		116		69
Average assets, excluding merger-related and restructuring expenses	J		503,413		500,497		472,600		424,515		411,143
Average intangible assets(GAAP)			(23,148	)	(23,020	)	(19,257	)	(12,473	)	(12,326	)
Average tangible assets, excluding merger-related and restructuring expenses	K	$	480,265		477,477		453,343		412,042		398,817
Return on average assets
GAAP	A/H		1.31	%	1.31		1.22		1.18		1.22
Excluding merger-related and restructuring expenses	B/J		1.35		1.34		1.26		1.24		1.27
Return on average tangible assets
GAAP	A/I		1.38		1.38		1.27		1.22		1.26
Excluding merger-related and restructuring expenses, and other intangible amortization	C/K		1.48	%	1.46		1.38		1.33		1.38

PAGE 22

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2005					2004
(In millions, except per share data)	*	Second Quarter			First Quarter		Fourth Quarter		Third Quarter		Second Quarter
OVERHEAD EFFICIENCY RATIOS
Noninterest expense(GAAP)	L	$	3,788		3,872		3,834		3,671		3,495
Merger-related and restructuring expenses(GAAP)			(90	)	(61	)	(116	)	(127	)	(102	)
Noninterest expense, excluding merger-related and restructuring expenses	M		3,698		3,811		3,718		3,544		3,393
Other intangible amortization(GAAP)			(107	)	(115	)	(113	)	(99	)	(107	)
Noninterest expense, excluding merger-related and restructuring expenses, and other intangible amortization	N	$	3,591		3,696		3,605		3,445		3,286
Net interest income (GAAP)		$	3,358		3,413		3,297		2,965		2,838
Tax-equivalent adjustment			53		61		60		63		65
Net interest income (Tax-equivalent)			3,411		3,474		3,357		3,028		2,903
Fee and other income (GAAP)			2,977		2,995		2,804		2,601		2,607
Total	O	$	6,388		6,469		6,161		5,629		5,510
Retail Brokerage Services, excluding insurance
Noninterest expense (GAAP)	P	$	862		867		908		863		907
Net interest income (GAAP)		$	144		145		147		144		121
Tax-equivalent adjustment			—		—		1		—		—
Net interest income (Tax-equivalent)			144		145		148		144		121
Fee and other income(GAAP)			881		886		906		826		907
Total	Q	$	1,025		1,031		1,054		970		1,028
Overhead efficiency ratios
GAAP	L/O		59.29	%	59.86		62.23		65.20		63.46
Excluding merger-related and restructuring expenses	M/O		57.87		58.92		60.34		62.96		61.60
Excluding merger-related and restructuring expenses, and brokerage	M-P/O-Q		52.87		54.14		55.01		57.56		55.50
Excluding merger-related and restructuring expenses, and other intangible amortization	N/O		56.19		57.15		58.50		61.20		59.66
Excluding merger-related and restructuring expenses, other intangible amortization and brokerage	N-P/O-Q		50.86	%	52.03		52.78		55.43		53.12
OPERATING LEVERAGE
Operating leverage(GAAP)		$	5		269		368		(55	)	(11	)
Merger-related and restructuring expenses (GAAP)			30		(55	)	(10	)	25		3
Operating leverage, excluding merger-related and restructuring expenses			35		214		358		(30	)	(8	)
Other intangible amortization (GAAP)			(8	)	1		15		(8	)	(5	)
Operating leverage, excluding merger-related and restructuring expenses, and other intangible amortization		$	27		215		373		(38	)	(13	)
DIVIDEND PAYOUT RATIOS ON COMMON SHARES
Dividends paid per common share	R	$	0.46		0.46		0.46		0.40		0.40
Diluted earnings per common share(GAAP)	S	$	1.04		1.01		0.95		0.96		0.95
Merger-related and restructuring expenses(GAAP)			0.03		0.02		0.04		0.04		0.03
Other intangible amortization (GAAP)			0.04		0.05		0.05		0.05		0.05
Diluted earnings per common share, excluding merger-related and restructuring expenses, and other intangible amortization	T	$	1.11		1.08		1.04		1.05		1.03
Dividend payout ratios
GAAP	R/S		44.23	%	45.54		48.42		41.67		42.11
Excluding merger-related and restructuring expenses, and other intangible amortization	R/T		41.44	%	42.59		44.23		38.10		38.83

* The letters included in the columns are provided to show how the various ratios presented in the tables on pages 21 and 22 are calculated. For example, return on average assets on a GAAP basis is calculated by dividing income(GAAP) by average assets (GAAP) (i.e., A/H) and annualized where appropriate.