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

Exhibit (99)(a)

	Press Release January 19, 2006

WACHOVIA EARNS RECORD $6.64 BILLION OR $4.19 PER SHARE IN 2005;

4^THCONSECUTIVE YEAR OF DOUBLE-DIGIT GROWTH

4^th QUARTER 2005 EARNINGS RISE TO $1.09 PER SHARE, UP 15%

4^TH QUARTER 2005 COMPARED WITH 4^TH QUARTER 2004

• Revenue up 7 percent, reflecting a larger balance sheet and fee income growth.

• 21 percent growth in average loans and average core deposits up 10 percent.

• Credit quality continued to be exceptional with net charge-offs only 0.09 percent of average loans and total nonperforming assets at a record low 0.28 percent of loans, foreclosed properties and loans held for sale.

• Results bolstered by solid sales activity, record customer satisfaction and loyalty, and the SouthTrust merger integration completed on time and under budget.

Earnings Highlights

	Three Months Ended
(In millions, except per share data)	December 31, 2005					September 30, 2005		December 31, 2004
	Amount			EPS		Amount	EPS	Amount	EPS
Earnings
Net income (GAAP)	$	1,707		1.09		1,665	1.06	1,448	0.95
Merger-related and restructuring expenses		37		0.02		51	0.03	53	0.04
Earnings excluding merger-related and restructuring expenses	$	1,744		1.11		1,716	1.09	1,501	0.99
Discontinued operations, net of income taxes		(214	)	(0.14	)	—	—	—	—
Earnings excluding merger-related and restructuring expenses, and discontinued operations	$	1,530		0.97		1,716	1.09	1,501	0.99
Financial ratios
Return on average common stockholders’ equity		14.60	%			13.95		13.50
Net interest margin (a)		3.25				3.18		3.37
Fee and other income as % of total revenue (a)		45.55				48.63		45.50
Overhead efficiency ratio (a)		63.72	%			59.78		62.23
Capital adequacy (b)
Tier 1 capital ratio		7.61	%			7.42		8.01
Total capital ratio		10.97				10.79		11.11
Leverage ratio		6.12	%			5.96		6.38
Asset quality
Allowance for loan losses as % of nonaccrual and restructured loans		439	%			347		289
Allowance for loan losses as % of loans, net		1.05				1.13		1.23
Allowance for credit losses as % of loans, net (c)		1.11				1.20		1.30
Net charge-offs as % of average loans, net		0.09				0.10		0.23
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		0.28	%			0.37		0.53

(a) Tax-equivalent.

(b) The fourth 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 $1.09 PER SHARE IN 4^th QUARTER 2005, UP 15%/page 2

CHARLOTTE, N.C. — Wachovia Corp. (NYSE:WB) today reported record net income of $1.71 billion, or $1.09 per share, in the fourth quarter of 2005 compared with $1.45 billion, or 95 cents per share, in the fourth quarter of 2004.

Excluding after-tax net merger-related expenses of 2 cents per share in the fourth quarter of 2005 and 4 cents in the fourth quarter of 2004, earnings were $1.74 billion, or $1.11 per share, in the fourth quarter of 2005 compared with $1.50 billion, or 99 cents per share, in the fourth quarter of 2004.

Full year 2005 net income was a record $6.64 billion, up 27 percent from 2004, and earnings per share were up 10 percent from 2004 to a record $4.19. Excluding after-tax net merger-related expenses of 11 cents per share in 2005 and 14 cents in 2004, earnings in 2005 were $6.81 billion, or $4.30 per share, compared with $5.42 billion, or $3.95 per share, in 2004.

These results included a discontinued operations gain of $214 million after-tax, or 14 cents per common share, related to the 2005 fourth quarter sale of Wachovia’s corporate and institutional trust businesses. In addition, the fourth quarter of 2005 included higher than normal expenses that better position the company for future earnings growth, as well as securities losses recognized as part of balance sheet repositioning.

“We’re proud of our record fourth quarter results and fourth consecutive year of double-digit earnings increases despite rising funding costs and related industry-wide pressure on margins. Our employees’ dedication and unwavering customer focus are driving Wachovia’s growth and market share gains,” said Ken Thompson, Wachovia chairman and chief executive officer. “During the fourth quarter of 2005, we continued to reposition and reinvest for the future. We completed the SouthTrust integration, closed two acquisitions and a divesture, and opened 50 new branches. With our team’s record of superb execution, I have great confidence we’ll achieve our goals for continued growth.”

Wachovia Corporation

	Three Months Ended
(In millions)	December 31, 2005		September 30, 2005	December 31, 2004
Total revenue (Tax-equivalent)	$	6,564	6,698	6,161
Provision for credit losses		81	82	109
Noninterest expense		4,183	4,004	3,834
Income from continuing operations		1,493	1,665	1,448
Net income available to common stockholders		1,707	1,665	1,448
Average loans, net		237,482	228,960	196,527
Average core deposits	$	287,502	280,748	260,627

Results include the impact of the acquisition of SouthTrust Corporation on November 1, 2004. In the fourth quarter of 2005 compared with the fourth quarter of 2004, Wachovia:

• Increased revenue 7 percent. Revenue growth reflected strong capital markets-related income as well as a larger balance sheet, with average loans up 21 percent.

• Grew net interest income 6 percent, reflecting higher loans and deposits. Commercial loan growth was across-the-board while consumer loans were higher due to real estate-secured lending, including the effect of a net $9.2 billion of home equity lines transferred to the loan

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WACHOVIA EARNS $1.09 PER SHARE IN 4^th QUARTER 2005, UP 15%/page 3

portfolio in the fourth quarter of 2004 from loans held for sale. Core deposit growth continued to be solid, with a 10 percent increase in average core deposits and a 7 percent increase in average low-cost core deposits.

• Generated 7 percent fee and other income growth, led by higher asset management and investment banking fees, strong principal investing results, and other banking fees. Growth was partially offset by securities losses, lower retail brokerage commissions and trading losses.

• Increased noninterest expense 9 percent on higher personnel expense, largely related to the efficiency initiative, and to variable incentive expense, higher legal costs and charitable contributions. These factors produced a higher than normal expense base, offset by merger efficiencies.

• Recorded a provision for credit losses of $81 million. Net charge-offs were $51 million, or an annualized 0.09 percent of average net loans. Total nonperforming assets including loans held for sale were $752 million, or a record low 0.28 percent of loans, foreclosed properties and loans held for sale.

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, discontinued operations 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 Highlights

	Three Months Ended
(In millions)	December 31, 2005			September 30, 2005	December 31, 2004
Total revenue (Tax-equivalent)	$	3,310		3,240	2,984
Provision for credit losses		75		77	107
Noninterest expense		1,671		1,585	1,525
Segment earnings	$	990		999	862
Cash overhead efficiency ratio (Tax-equivalent)		50.48	%	48.91	51.09
Average loans, net	$	169,134		163,782	146,864
Average core deposits		213,286		208,428	191,637
Economic capital, average	$	7,038		7,016	6,418

General Bank

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

• 11 percent revenue growth driven by higher net interest income and fee and other income.

• Strength in low-cost core deposits and higher commercial and consumer loans drove a 10 percent increase in net interest income. Net new retail checking accounts increased by 115,000 in the fourth quarter of 2005, compared with an increase of 103,000 in the prior year fourth quarter.

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WACHOVIA EARNS $1.09 PER SHARE IN 4^th QUARTER 2005, UP 15%/page 4

• 13 percent growth in fee and other income generated primarily by strong debit card interchange income and retail service charges. In addition, a larger mortgage servicing portfolio and higher mortgage originations contributed to growth.

• 10 percent growth in noninterest expense due to higher personnel costs related to investment in growth initiatives and higher sales production, as well as increased charitable contributions.

Capital Management Highlights

	Three Months Ended
(In millions)	December 31, 2005			September 30, 2005	December 31, 2004
Total revenue (Tax-equivalent)	$	1,336		1,296	1,298
Provision for credit losses		—		—	—
Noninterest expense		1,105		1,067	1,099
Segment earnings	$	147		146	126
Cash overhead efficiency ratio (Tax-equivalent)		82.70	%	82.23	84.72
Average loans, net	$	388		372	317
Average core deposits		28,328		28,521	30,415
Economic capital, average	$	1,395		1,349	1,374

Capital Management

Capital Management includes retail brokerage services and asset management. The corporate and institutional trust businesses sold in the fourth quarter of 2005 are reflected in the Parent segment because they are divested businesses. The fourth quarter of 2005 compared with the fourth quarter of 2004 included:

• 3 percent revenue growth on 29 percent growth in brokerage managed account assets to $106.5 billion, generating solid growth in recurring income.

• 19 percent growth in net interest income largely due to improved deposit spreads.

• Expenses grew slightly due to efficiency initiative costs and corporate contributions. Efficiencies gained from the completed brokerage integration largely offset expense growth. The overhead efficiency ratio improved 202 basis points to 82.70 percent.

• Total assets under management of $253.5 billion at December 31, 2005, declined modestly from December 31, 2004. Equity assets reached $83.1 billion, led by positive equity mutual fund sales and improved equity markets. Total brokerage client assets grew 5 percent from year-end 2004 to $683.6 billion at December 31, 2005.

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WACHOVIA EARNS $1.09 PER SHARE IN 4^th QUARTER 2005, UP 15%/page 5

Wealth Management Highlights

	Three Months Ended
(In millions)	December 31, 2005			September 30, 2005	December 31, 2004
Total revenue (Tax-equivalent)	$	344		341	289
Provision for credit losses		1		6	—
Noninterest expense		249		234	199
Segment earnings	$	60		64	57
Cash overhead efficiency ratio (Tax-equivalent)		72.37	%	68.55	69.16
Average loans, net	$	14,898		14,210	12,088
Average core deposits		14,305		13,571	12,880
Economic capital, average	$	537		530	484

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

• Record revenue driven by 26 percent growth in fee and other income and a 10 percent increase in net interest income.

• Net interest income growth fueled by a 23 percent increase in average loans and an 11 percent increase in average core deposits.

• Fee and other income included the impact of Palmer & Cay, as well as improved trust and investment management fees on record sales production.

• Noninterest expense growth reflected the impact of Palmer & Cay and higher personnel costs.

Corporate and Investment Bank Highlights

	Three Months Ended
(In millions)	December 31, 2005			September 30, 2005		December 31, 2004
Total revenue (Tax-equivalent)	$	1,436		1,514		1,264
Provision for credit losses		(13	)	(3	)	4
Noninterest expense		788		810		659
Segment earnings	$	415		445		379
Cash overhead efficiency ratio (Tax-equivalent)		54.86	%	53.45		52.22
Average loans, net	$	41,230		38,771		35,205
Average core deposits		25,877		24,726		20,971
Economic capital, average	$	5,601		5,601		4,801

Corporate and Investment Bank

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

• 14 percent revenue growth reflecting a 32 percent increase in fee and other income offsetting a 5 percent decline in net interest income.

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WACHOVIA EARNS $1.09 PER SHARE IN 4^th QUARTER 2005, UP 15%/page 6

• Net interest income declined due primarily to a change in the mix of trading assets, which lowered the overall spread in the trading portfolio, and to runoff in a leasing portfolio.

• The growth in fee income reflected strong principal investing gains and record results in advisory and underwriting fees, led by strong structured products, equity originations and loan syndications. Growth was partially offset by trading losses and lower commissions.

• A 20 percent increase in noninterest expense due primarily to higher variable compensation and expenses related to both revenue and efficiency projects.

• Strong core deposit growth primarily from higher commercial mortgage servicing and international correspondent banking, and increased loans primarily reflecting higher large corporate loans.

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Wachovia Corporation (NYSE:WB) is one of the largest providers of financial services to retail, brokerage and corporate customers, with banking operations from Connecticut to Florida and west to Texas, and retail brokerage operations nationwide. Wachovia had assets of $520.8 billion, market capitalization of $82.3 billion and stockholders’ equity of $47.6 billion at December 31, 2005. Its four core businesses, the General Bank, Capital Management, Wealth Management, and the Corporate and Investment Bank, serve more than 13 million household and business relationships primarily through 3,131 offices in 15 states and Washington, D.C. Its full-service retail brokerage firm, Wachovia Securities, LLC, also serves clients through 719 offices in 49 states, Washington, D.C., and six Latin American countries. The Corporate and Investment Bank serves clients in selected industries nationwide. Global services are offered through 40 offices around the world. Online banking and brokerage products and services also are available through Wachovia.com.

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 January 19, 2006.

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”, “Earnings Excluding Merger-Related and Restructuring Expenses and Discontinued Operations” and “Earnings Excluding Merger-Related and Restructuring Expenses, Other Intangible Amortization and Discontinued Operations”, 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, discontinued operations 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

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WACHOVIA EARNS $1.09 PER SHARE IN 4^th QUARTER 2005, UP 15%/page 7

restructuring expenses, other intangible amortization, discontinued operations 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 fourth quarter 2005 results in a conference call and audio webcast beginning at 10 a.m. Eastern Time today. This review may include a discussion of certain non-GAAP financial measures. Supplemental materials relating to fourth 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 Fourth 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 888-357-9787 for U.S. callers or 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: Thursday, January 19, at 11:30 a.m. ET and continuing through 5 p.m. ET Friday, February 24. Replay telephone number is 706-645-9291; access code 3430512.

***

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

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WACHOVIA CORPORATION AND SUBSIDIARIES

FINANCIAL HIGHLIGHTS

(Unaudited)

(Dollars in millions, except per share data)	2005						2004
	Fourth Quarter			Third Quarter	Second Quarter	First Quarter	Fourth Quarter
EARNINGS SUMMARY
Net interest income (GAAP) (a)	$	3,523		3,387	3,358	3,413	3,297
Tax-equivalent adjustment		52		53	53	61	60
Net interest income (Tax-equivalent) (a)		3,575		3,440	3,411	3,474	3,357
Fee and other income (a)		2,989		3,258	2,977	2,995	2,804
Total revenue (Tax-equivalent)		6,564		6,698	6,388	6,469	6,161
Provision for credit losses		81		82	50	36	109
Other noninterest expense		4,032		3,820	3,591	3,696	3,605
Merger-related and restructuring expenses		58		83	90	61	116
Other intangible amortization		93		101	107	115	113
Total noninterest expense		4,183		4,004	3,788	3,872	3,834
Minority interest in income of consolidated subsidiaries		103		104	71	64	54
Income from continuing operations before income taxes (Tax-equivalent)		2,197		2,508	2,479	2,497	2,164
Income taxes		652		790	776	815	656
Tax-equivalent adjustment		52		53	53	61	60
Income from continuing operations		1,493		1,665	1,650	1,621	1,448
Discontinued operations, net of income taxes		214		—	—	—	—
Net income	$	1,707		1,665	1,650	1,621	1,448
Diluted earnings per common share	$	1.09		1.06	1.04	1.01	0.95
Return on average common stockholders’ equity		14.60	%	13.95	14.04	13.92	13.50
Return on average assets		1.30		1.29	1.31	1.31	1.22
Overhead efficiency ratio		63.72	%	59.78	59.29	59.86	62.23
Operating leverage	$	(312	)	92	5	269	368
ASSET QUALITY
Allowance for loan losses as % of loans, net		1.05	%	1.13	1.18	1.20	1.23
Allowance for loan losses as % of nonperforming assets		378		303	284	262	251
Allowance for credit losses as % of loans, net		1.11		1.20	1.25	1.27	1.30
Net charge-offs as % of average loans, net		0.09		0.10	0.09	0.08	0.23
Nonperforming assets as % of loans, net, foreclosed properties and loans held for sale		0.28	%	0.37	0.44	0.50	0.53
CAPITAL ADEQUACY (b)
Tier I capital ratio		7.61	%	7.42	7.85	7.91	8.01
Total capital ratio		10.97	%	10.79	11.25	11.40	11.11
Leverage ratio		6.12	%	5.96	6.10	5.99	6.38
OTHER DATA
Average diluted common shares (In millions)		1,570		1,575	1,591	1,603	1,518
Actual common shares (In millions)		1,557		1,553	1,577	1,576	1,588
Dividends paid per common share	$	0.51		0.51	0.46	0.46	0.46
Dividend payout ratio on common shares		46.79	%	48.11	44.23	45.54	48.42
Book value per common share	$	30.55		30.10	30.37	29.48	29.79
Common stock price		52.86		47.59	49.60	50.91	52.60
Market capitalization	$	82,291		73,930	78,236	80,256	83,537
Common stock price to book value		173	%	158	163	173	177
FTE employees		93,980		92,907	93,385	93,669	96,030
Total financial centers/brokerage offices		3,850		3,840	3,825	3,970	3,971
ATMs		5,119		5,119	5,089	5,234	5,321

(a) Amounts presented in the third quarter of 2005 have been reclassified to conform to the presentation in the fourth quarter of 2005.

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

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WACHOVIA CORPORATION AND SUBSIDIARIES

OTHER FINANCIAL DATA

(Unaudited)

(In millions)	2005						2004
	Fourth Quarter			Third Quarter	Second Quarter	First Quarter	Fourth Quarter
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, AND DISCONTINUED OPERATIONS (a) (b)
Return on average common stockholders’ equity		13.05	%	14.36	14.43	14.19	13.95
Return on average assets		1.17		1.33	1.35	1.34	1.26
Overhead efficiency ratio		62.84		58.55	57.87	58.92	60.34
Overhead efficiency ratio excluding brokerage		59.07	%	54.05	52.86	54.12	54.99
Operating leverage	$	(337	)	84	35	214	358
EARNINGS EXCLUDING MERGER-RELATED AND RESTRUCTURING EXPENSES, OTHER INTANGIBLE AMORTIZATION AND DISCONTINUED OPERATIONS (a) (b) (c)
Dividend payout ratio on common shares		50.50	%	45.13	41.44	42.59	44.23
Return on average tangible common stockholders’ equity		27.11		29.14	29.50	28.86	26.59
Return on average tangible assets		1.27		1.45	1.48	1.46	1.38
Overhead efficiency ratio		61.41		57.06	56.19	57.15	58.50
Overhead efficiency ratio excluding brokerage		57.36	%	52.27	50.85	52.01	52.77
Operating leverage	$	(343	)	77	27	215	373
OTHER FINANCIAL DATA
Net interest margin (d)		3.25	%	3.18	3.23	3.31	3.37
Fee and other income as % of total revenue (d)		45.55		48.63	46.60	46.30	45.50
Effective income tax rate		34.10		32.21	32.02	33.42	31.20
Tax rate (Tax-equivalent) (e)		35.39	%	33.63	33.50	35.05	33.14
AVERAGE BALANCE SHEET DATA
Commercial loans, net	$	138,361		132,637	131,195	127,703	116,599
Consumer loans, net		99,121		96,323	92,686	93,472	79,928
Loans, net		237,482		228,960	223,881	221,175	196,527
Earning assets		439,204		431,346	422,534	421,047	397,490
Total assets		520,382		511,567	503,361	500,486	472,431
Core deposits		287,502		280,748	275,338	271,095	260,627
Total deposits		319,825		306,371	297,194	294,674	280,051
Interest-bearing liabilities		382,974		375,782	367,828	365,516	343,489
Stockholders’ equity	$	46,407		47,328	47,114	47,231	42,644
PERIOD-END BALANCE SHEET DATA
Commercial loans, net	$	147,165		141,063	136,115	134,696	131,196
Consumer loans, net		111,850		98,670	94,172	92,570	92,644
Loans, net		259,015		239,733	230,287	227,266	223,840
Goodwill and other intangible assets
Goodwill		21,807		21,857	21,861	21,635	21,526
Deposit base		705		779	861	951	1,048
Customer relationships		413		416	427	387	443
Tradename		90		90	90	90	90
Total assets		520,755		532,381	511,840	506,833	493,324
Core deposits		293,562		287,732	275,281	273,883	274,588
Total deposits		324,894		320,439	299,910	297,657	295,053
Stockholders’ equity	$	47,561		46,757	47,904	46,467	47,317

(a) These financial measures are calculated by excluding from GAAP computed net income presented on page 9, $37 million, $51 million, $48 million, $31 million and $53 million in the fourth, third, second and first quarters of 2005, and in the fourth quarter of 2004, respectively, of after-tax net merger-related and restructuring expenses, and $214 million after tax in the fourth quarter of 2005 related to discontinued operations.

(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, $57 million, $63 million, $69 million, $72 million and $74 million in the fourth, third, second and first quarters of 2005, and in the fourth quarter of 2004, respectively, of deposit base and other intangible amortization.

(d) Amounts presented in the third quarter of 2005 have been reclassified to conform to the presentation in the fourth quarter of 2005.

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

PAGE 11

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	2005					2004
(In millions, except per share data)	Fourth Quarter			Third Quarter	Second Quarter	First Quarter		Fourth Quarter
INTEREST INCOME
Interest and fees on loans	$	3,846		3,588	3,362	3,174		2,814
Interest and dividends on securities		1,486		1,434	1,437	1,426		1,232
Trading account interest (a)		462		387	354	378		388
Other interest income		696		635	549	475		535
Total interest income		6,490		6,044	5,702	5,453		4,969
INTEREST EXPENSE
Interest on deposits		1,618		1,408	1,221	1,050		860
Interest on short-term borrowings		764		742	670	601		492
Interest on long-term debt		585		507	453	389		320
Total interest expense		2,967		2,657	2,344	2,040		1,672
Net interest income		3,523		3,387	3,358	3,413		3,297
Provision for credit losses		81		82	50	36		109
Net interest income after provision for credit losses		3,442		3,305	3,308	3,377		3,188
FEE AND OTHER INCOME
Service charges		555		555	528	513		519
Other banking fees		400		385	355	351		343
Commissions		594		615	603	599		620
Fiduciary and asset management fees		769		732	728	714		700
Advisory, underwriting and other investment banking fees		325		294	257	233		271
Trading account profits (losses) (a)		(33	)	162	17	99		(16	)
Principal investing		135		166	41	59		7
Securities gains (losses)		(74	)	29	136	(2	)	23
Other income		318		320	312	429		337
Total fee and other income		2,989		3,258	2,977	2,995		2,804
NONINTEREST EXPENSE
Salaries and employee benefits		2,470		2,476	2,324	2,401		2,239
Occupancy		283		260	271	250		260
Equipment		277		276	269	265		272
Advertising		51		50	48	44		51
Communications and supplies		155		158	158	162		163
Professional and consulting fees		213		167	155	127		179
Other intangible amortization		93		101	107	115		113
Merger-related and restructuring expenses		58		83	90	61		116
Sundry expense		583		433	366	447		441
Total noninterest expense		4,183		4,004	3,788	3,872		3,834
Minority interest in income of consolidated subsidiaries		103		104	71	64		54
Income from continuing operations before income taxes		2,145		2,455	2,426	2,436		2,104
Income taxes		652		790	776	815		656
Income from continuing operations		1,493		1,665	1,650	1,621		1,448
Discontinued operations, net of income taxes		214		—	—	—		—
Net income	$	1,707		1,665	1,650	1,621		1,448
PER COMMON SHARE DATA
Basic earnings
Income from continuing operations	$	0.97		1.07	1.05	1.03		0.97
Net income		1.11		1.07	1.05	1.03		0.97
Diluted earnings
Income from continuing operations		0.95		1.06	1.04	1.01		0.95
Net income		1.09		1.06	1.04	1.01		0.95
Cash dividends	$	0.51		0.51	0.46	0.46		0.46
AVERAGE COMMON SHARES
Basic		1,541		1,549	1,564	1,571		1,487
Diluted		1,570		1,575	1,591	1,603		1,518

(a) Amounts presented in the third quarter of 2005 have been reclassified to conform to the presentation in the fourth quarter of 2005.

PAGE 12

WACHOVIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Years Ended December 31,
(In millions, except per share data)	2005		2004
INTEREST INCOME
Interest and fees on loans	$	13,970	9,858
Interest and dividends on securities		5,783	4,639
Trading account interest		1,581	1,147
Other interest income		2,355	1,644
Total interest income		23,689	17,288
INTEREST EXPENSE
Interest on deposits		5,297	2,853
Interest on short-term borrowings		2,777	1,503
Interest on long-term debt		1,934	971
Total interest expense		10,008	5,327
Net interest income		13,681	11,961
Provision for credit losses		249	257
Net interest income after provision for credit losses		13,432	11,704
FEE AND OTHER INCOME
Service charges		2,151	1,978
Other banking fees		1,491	1,226
Commissions		2,411	2,601
Fiduciary and asset management fees		2,943	2,772
Advisory, underwriting and other investment banking fees		1,109	911
Trading account profits		245	35
Principal investing		401	261
Securities gains (losses)		89	(10	)
Other income		1,379	1,005
Total fee and other income		12,219	10,779
NONINTEREST EXPENSE
Salaries and employee benefits		9,671	8,703
Occupancy		1,064	947
Equipment		1,087	1,052
Advertising		193	193
Communications and supplies		633	620
Professional and consulting fees		662	548
Other intangible amortization		416	431
Merger-related and restructuring expenses		292	444
Sundry expense		1,829	1,728
Total noninterest expense		15,847	14,666
Minority interest in income of consolidated subsidiaries		342	184
Income from continuing operations before income taxes		9,462	7,633
Income taxes		3,033	2,419
Income from continuing operations		6,429	5,214
Discontinued operations, net of income taxes		214	—
Net income	$	6,643	5,214
PER COMMON SHARE DATA
Basic earnings
Income from continuing operations	$	4.13	3.87
Net income		4.27	3.87
Diluted earnings
Income from continuing operations		4.05	3.81
Net income		4.19	3.81
Cash dividends	$	1.94	1.66
AVERAGE COMMON SHARES
Basic		1,556	1,346
Diluted		1,585	1,370

PAGE 13

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended December 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)	$	2,508	179		153	587		148		(52	)	3,523
Fee and other income		745	1,167		188	900		(11	)	—		2,989
Intersegment revenue		57	(10	)	3	(51	)	1		—		—
Total revenue (a)		3,310	1,336		344	1,436		138		(52	)	6,512
Provision for credit losses		75	—		1	(13	)	18		—		81
Noninterest expense		1,671	1,105		249	788		312		58		4,183
Minority interest		—	—		—	—		103		—		103
Income taxes (benefits)		562	84		34	223		(230	)	(21	)	652
Tax-equivalent adjustment		12	—		—	23		17		(52	)	—
Income from continuing operations		990	147		60	415		(82	)	(37	)	1,493
Discontinued operations, net of income taxes		—	—		—	—		214		—		214
Net income	$	990	147		60	415		132		(37	)	1,707
	Three Months Ended September 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)	$	2,424	158		149	532		177		(53	)	3,387
Fee and other income		760	1,150		191	1,027		130		—		3,258
Intersegment revenue		56	(12	)	1	(45	)	—		—		—
Total revenue (a)		3,240	1,296		341	1,514		307		(53	)	6,645
Provision for credit losses		77	—		6	(3	)	2		—		82
Noninterest expense		1,585	1,067		234	810		225		83		4,004
Minority interest		—	—		—	—		105		(1	)	104
Income taxes (benefits)		569	82		37	241		(108	)	(31	)	790
Tax-equivalent adjustment		10	1		—	21		21		(53	)	—
Net income	$	999	146		64	445		62		(51	)	1,665

PAGE 14

WACHOVIA CORPORATION AND SUBSIDIARIES

BUSINESS SEGMENTS

(Unaudited)

	Three Months Ended December 31, 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)	$	2,278	150		139	618		172		(60	)	3,297
Fee and other income		659	1,158		149	684		154		—		2,804
Intersegment revenue		47	(10	)	1	(38	)	—		—		—
Total revenue (a)		2,984	1,298		289	1,264		326		(60	)	6,101
Provision for credit losses		107	—		—	4		(2	)	—		109
Noninterest expense		1,525	1,099		199	659		236		116		3,834
Minority interest		—	—		—	—		83		(29	)	54
Income taxes (benefits)		480	72		33	192		(87	)	(34	)	656
Tax-equivalent adjustment		10	1		—	30		19		(60	)	—
Net income	$	862	126		57	379		77		(53	)	1,448

(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)	Fourth Quarter		Third Quarter	Second Quarter	First Quarter	Fourth Quarter
ON-BALANCE SHEET LOAN PORTFOLIO COMMERCIAL
Commercial, financial and agricultural	$	87,327	83,241	80,528	78,669	75,095
Real estate—construction and other		13,972	13,653	13,216	12,713	12,673
Real estate—mortgage		19,966	19,864	19,724	20,707	20,742
Lease financing		25,368	25,022	24,836	25,013	25,000
Foreign		10,221	8,888	7,549	7,504	7,716
Total commercial		156,854	150,668	145,853	144,606	141,226
CONSUMER
Real estate secured		94,748	80,128	76,213	74,631	74,161
Student loans		9,922	11,458	10,828	10,795	10,468
Installment loans		6,751	6,745	6,783	6,808	7,684
Total consumer		111,421	98,331	93,824	92,234	92,313
Total loans		268,275	248,999	239,677	236,840	233,539
Unearned income		9,260	9,266	9,390	9,574	9,699
Loans, net (On-balance sheet)	$	259,015	239,733	230,287	227,266	223,840
MANAGED PORTFOLIO (a)
COMMERCIAL
On-balance sheet loan portfolio	$	156,854	150,668	145,853	144,606	141,226
Securitized loans—off-balance sheet		1,227	1,263	1,293	1,402	1,734
Loans held for sale		3,860	4,039	1,783	1,117	2,112
Total commercial		161,941	155,970	148,929	147,125	145,072
CONSUMER
Real estate secured
On-balance sheet loan portfolio		94,748	80,128	76,213	74,631	74,161
Securitized loans—off-balance sheet		8,438	9,255	10,199	6,979	7,570
Securitized loans included in securities		4,817	4,218	4,426	4,626	4,838
Loans held for sale		2,296	12,660	11,923	11,925	10,452
Total real estate secured		110,299	106,261	102,761	98,161	97,021
Student
On-balance sheet loan portfolio		9,922	11,458	10,828	10,795	10,468
Securitized loans—off-balance sheet		2,000	341	382	423	463
Securitized loans included in securities		52	—	—	—	—
Loans held for sale		—	—	16	65	128
Total student		11,974	11,799	11,226	11,283	11,059
Installment
On-balance sheet loan portfolio		6,751	6,745	6,783	6,808	7,684
Securitized loans—off-balance sheet		3,392	2,228	2,662	1,930	2,184
Securitized loans included in securities		206	146	163	155	195
Loans held for sale		249	1,339	809	1,066	296
Total installment		10,598	10,458	10,417	9,959	10,359
Total consumer		132,871	128,518	124,404	119,403	118,439
Total managed portfolio	$	294,812	284,488	273,333	266,528	263,511
SERVICING PORTFOLIO (b)
Commercial	$	173,428	158,650	152,923	140,493	136,578
Consumer (c)	$	56,741	55,813	51,954	45,063	38,442

(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.

(c) Amounts presented in periods prior to the fourth quarter of 2005 have been reclassified to conform to the presentation in the fourth quarter of 2005.

PAGE 16

WACHOVIA CORPORATION AND SUBSIDIARIES

ALLOWANCE FOR LOAN LOSSES AND NONPERFORMING ASSETS

(Unaudited)

	2005									2004
(In millions)	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
ALLOWANCE FOR LOAN LOSSES (a)
Balance, beginning of period	$	2,719		2,718		2,732		2,757		2,324
Provision for credit losses		72		74		48		33		95
Provision for credit losses relating to loans transferred to loans held for sale or sold		5		12		—		1		(6	)
Balance of acquired entities at purchase date		—		—		—		—		510
Allowance relating to loans acquired, transferred to loans held for sale or sold		(21	)	(26	)	(11	)	(13	)	(51	)
Net charge-offs		(51	)	(59	)	(51	)	(46	)	(115	)
Balance, end of period	$	2,724		2,719		2,718		2,732		2,757
as % of loans, net		1.05	%	1.13		1.18		1.20		1.23
as % of nonaccrual and restructured loans (b)		439	%	347		332		300		289
as % of nonperforming assets (b)		378	%	303		284		262		251
LOAN LOSSES
Commercial, financial and agricultural	$	52		43		35		26		82
Commercial real estate - construction and mortgage		12		9		—		1		4
Consumer		65		71		75		67		74
Total loan losses		129		123		110		94		160
LOAN RECOVERIES
Commercial, financial and agricultural		50		35		25		26		27
Commercial real estate—construction and mortgage		3		2		1		—		—
Consumer		25		27		33		22		18
Total loan recoveries		78		64		59		48		45
Net charge-offs	$	51		59		51		46		115
Commercial loans net charge-offs as % of average commercial loans, net (c)		0.03	%	0.05		0.03		—		0.20
Consumer loans net charge-offs as % of average consumer loans, net (c)		0.16		0.18		0.18		0.19		0.28
Total net charge-offs as % of average loans, net (c)		0.09	%	0.10		0.09		0.08		0.23
NONPERFORMING ASSETS
Nonaccrual loans
Commercial, financial and agricultural	$	307		445		497		527		585
Commercial real estate—construction and mortgage		85		120		88		131		127
Consumer real estate secured		221		209		221		239		230
Installment loans		7		10		13		13		13
Total nonaccrual loans		620		784		819		910		955
Foreclosed properties (d)		100		112		138		132		145
Total nonperforming assets	$	720		896		957		1,042		1,100
Nonperforming loans included in loans held for sale (e)	$	32		59		111		159		157
Nonperforming assets included in loans and in loans held for sale	$	752		955		1,068		1,201		1,257
as % of loans, net, and foreclosed properties (b)		0.28	%	0.37		0.42		0.46		0.49
as % of loans, net, foreclosed properties and loans held for sale (e)		0.28	%	0.37		0.44		0.50		0.53
Accruing loans past due 90 days	$	625		525		521		510		522

(a) At December 31, 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)

(In millions, except per share data)	2005									2004
	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
ASSETS
Cash and due from banks	$	15,072		12,976		12,464		12,043		11,714
Interest-bearing bank balances		2,638		2,492		2,852		1,285		4,441
Federal funds sold and securities purchased under resale agreements		19,915		27,083		22,528		24,899		22,436
Total cash and cash equivalents		37,625		42,551		37,844		38,227		38,591
Trading account assets		42,704		49,646		46,519		47,149		45,932
Securities		114,889		117,195		117,906		116,731		110,597
Loans, net of unearned income		259,015		239,733		230,287		227,266		223,840
Allowance for loan losses		(2,724	)	(2,719	)	(2,718	)	(2,732	)	(2,757	)
Loans, net		256,291		237,014		227,569		224,534		221,083
Loans held for sale		6,405		18,038		14,531		14,173		12,988
Premises and equipment		4,910		5,352		5,354		5,260		5,268
Due from customers on acceptances		824		882		826		826		718
Goodwill		21,807		21,857		21,861		21,635		21,526
Other intangible assets		1,208		1,285		1,378		1,428		1,581
Other assets		34,092		38,561		38,052		36,870		35,040
Total assets	$	520,755		532,381		511,840		506,833		493,324
LIABILITIES AND STOCKHOLDERS’ EQUITY
Deposits
Noninterest-bearing deposits		67,487		68,402		63,079		61,626		64,197
Interest-bearing deposits		257,407		252,037		236,831		236,031		230,856
Total deposits		324,894		320,439		299,910		297,657		295,053
Short-term borrowings		61,953		78,184		75,726		73,401		63,406
Bank acceptances outstanding		892		932		859		866		755
Trading account liabilities		17,598		19,815		19,827		22,418		21,709
Other liabilities		15,986		16,504		15,750		15,281		15,507
Long-term debt		48,971		45,846		49,006		47,932		46,759
Total liabilities		470,294		481,720		461,078		457,555		443,189
Minority interest in net assets of consolidated subsidiaries		2,900		3,904		2,858		2,811		2,818
STOCKHOLDERS’ EQUITY
Dividend Equalization Preferred shares, no par value, 97 million shares issued and outstanding at December 31, 2005		—		—		—		—		—
Common stock, $3.33-1/3 par value; authorized 3 billion shares, outstanding 1.557 billion shares at December 31, 2005		5,189		5,178		5,258		5,255		5,294
Paid-in capital		31,172		30,821		31,038		30,976		31,120
Retained earnings		11,973		11,086		11,079		10,319		10,178
Accumulated other comprehensive income, net		(773	)	(328	)	529		(83	)	725
Total stockholders’ equity		47,561		46,757		47,904		46,467		47,317
Total liabilities and stockholders’ equity	$	520,755		532,381		511,840		506,833		493,324

PAGE 18

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

(In millions)	FOURTH QUARTER 2005						THIRD QUARTER 2005
	Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid		Average Balances		Interest Income/ Expense		Average Rates Earned/ Paid
ASSETS
Interest-bearing bank balances	$	2,514		24	3.75	%	$	2,417		21	3.46	%
Federal funds sold and securities purchased under resale agreements		22,647		237	4.17			24,451		216	3.50
Trading account assets		34,461		482	5.59			33,720		407	4.82
Securities		115,557		1,506	5.21			114,902		1,461	5.08
Loans
Commercial
Commercial, financial and agricultural		85,155		1,326	6.17			81,488		1,184	5.77
Real estate—construction and other		13,803		226	6.51			13,322		201	5.96
Real estate—mortgage		20,132		333	6.57			19,684		302	6.09
Lease financing		10,153		184	7.26			9,979		178	7.15
Foreign		9,118		97	4.23			8,164		80	3.88
Total commercial		138,361		2,166	6.22			132,637		1,945	5.82
Consumer
Real estate secured		80,984		1,236	6.10			78,088		1,166	5.97
Student loans		11,235		155	5.46			11,267		144	5.07
Installment loans		6,902		127	7.32			6,968		124	7.04
Total consumer		99,121		1,518	6.11			96,323		1,434	5.94
Total loans		237,482		3,684	6.17			228,960		3,379	5.87
Loans held for sale		17,646		270	6.10			16,567		244	5.90
Other earning assets		8,897		155	6.92			10,329		138	5.27
Total earning assets excluding derivatives		439,204		6,358	5.77			431,346		5,866	5.42
Risk management derivatives (a)		—		184	0.16			—		231	0.21
Total earning assets including derivatives		439,204		6,542	5.93			431,346		6,097	5.63
Cash and due from banks		12,770						12,277
Other assets		68,408						67,944
Total assets	$	520,382					$	511,567
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		78,936		258	1.30			78,961		220	1.10
Money market accounts		100,999		609	2.39			97,746		529	2.15
Other consumer time		43,549		369	3.37			41,063		325	3.13
Foreign		17,464		157	3.56			15,285		123	3.18
Other time		14,859		166	4.46			10,338		109	4.21
Total interest-bearing deposits		255,807		1,559	2.42			243,393		1,306	2.13
Federal funds purchased and securities sold under repurchase agreements		55,336		526	3.77			56,426		460	3.24
Commercial paper		8,062		76	3.74			12,664		108	3.39
Securities sold short		8,801		70	3.13			9,040		77	3.38
Other short-term borrowings		7,164		39	2.18			6,471		29	1.80
Long-term debt		47,804		576	4.81			47,788		536	4.48
Total interest-bearing liabilities excluding derivatives		382,974		2,846	2.95			375,782		2,516	2.66
Risk management derivatives (a)		—		121	0.13			—		141	0.15
Total interest-bearing liabilities including derivatives		382,974		2,967	3.08			375,782		2,657	2.81
Noninterest-bearing deposits		64,018						62,978
Other liabilities		26,983						25,479
Stockholders’ equity		46,407						47,328
Total liabilities and stockholders’ equity	$	520,382					$	511,567
Interest income and rate earned—including derivatives			$	6,542	5.93	%			$	6,097	5.63	%
Interest expense and equivalent rate paid—including derivatives				2,967	2.68					2,657	2.45
Net interest income and margin—including derivatives			$	3,575	3.25	%			$	3,440	3.18	%

(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)

SECOND QUARTER 2005						FIRST QUARTER 2005						FOURTH 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
$	2,649		20	3.07	%	$	2,484		16	2.62	%	$	3,909		18	1.85	%
	24,676		189	3.08			24,272		153	2.55			24,722		123	1.99
	31,879		377	4.73			35,147		402	4.59			36,517		411	4.49
	115,006		1,469	5.11			114,961		1,477	5.15			103,879		1,297	5.00
	80,213		1,084	5.42			76,651		960	5.08			69,394		836	4.79
	12,885		177	5.53			12,608		156	5.01			10,537		120	4.53
	20,204		288	5.71			20,739		271	5.31			19,035		237	4.95
	10,252		183	7.11			10,513		182	6.94			10,185		180	7.07
	7,641		68	3.55			7,192		58	3.28			7,448		58	3.10
	131,195		1,800	5.50			127,703		1,627	5.16			116,599		1,431	4.88
	74,799		1,072	5.74			74,658		1,037	5.57			62,083		853	5.49
	10,995		129	4.72			11,003		120	4.41			10,560		107	4.04
	6,892		115	6.75			7,811		122	6.31			7,285		111	6.12
	92,686		1,316	5.69			93,472		1,279	5.49			79,928		1,071	5.35
	223,881		3,116	5.58			221,175		2,906	5.30			196,527		2,502	5.08
	14,024		194	5.51			12,869		166	5.19			21,405		261	4.89
	10,419		125	4.84			10,139		115	4.58			10,531		104	3.89
	422,534		5,490	5.20			421,047		5,235	5.00			397,490		4,716	4.74
	—		265	0.26			—		279	0.27			—		313	0.31
	422,534		5,755	5.46			421,047		5,514	5.27			397,490		5,029	5.05
	12,389						12,661						11,870
	68,438						66,778						63,071
$	503,361					$	500,486					$	472,431
	80,113		194	0.97			81,071		161	0.81			79,476		128	0.64
	94,990		455	1.92			93,477		357	1.55			90,382		271	1.19
	38,064		273	2.87			36,005		239	2.70			32,540		212	2.58
	11,857		81	2.75			10,996		61	2.26			9,486		46	1.92
	9,999		78	3.09			12,583		83	2.67			9,938		56	2.31
	235,023		1,081	1.84			234,132		901	1.56			221,822		713	1.28
	53,984		375	2.79			51,395		312	2.46			47,264		233	1.96
	13,365		97	2.91			13,553		82	2.45			11,840		58	1.94
	10,648		92	3.49			12,681		102	3.25			12,694		102	3.18
	6,694		30	1.82			6,370		26	1.63			5,859		19	1.33
	48,114		528	4.39			47,385		493	4.17			44,010		443	4.02
	367,828		2,203	2.40			365,516		1,916	2.12			343,489		1,568	1.82
	—		141	0.16			—		124	0.14			—		104	0.12
	367,828		2,344	2.56			365,516		2,040	2.26			343,489		1,672	1.94
	62,171						60,542						58,229
	26,248						27,197						28,069
	47,114						47,231						42,644
$	503,361					$	500,486					$	472,431
		$	5,755	5.46	%			$	5,514	5.27	%			$	5,029	5.05	%
			2,344	2.23					2,040	1.96					1,672	1.68
		$	3,411	3.23	%			$	3,474	3.31	%			$	3,357	3.37	%

PAGE 20

WACHOVIA CORPORATION AND SUBSIDIARIES

NET INTEREST INCOME SUMMARIES

(Unaudited)

	YEAR ENDED 2005						YEAR 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	$	2,516		81	3.23	%	$	3,578		51		1.43	%
Federal funds sold and securities purchased under resale agreements		24,008		795	3.31			24,940		342		1.37
Trading account assets		33,800		1,668	4.94			28,944		1,239		4.28
Securities		115,107		5,913	5.14			100,960		4,951		4.90
Loans
Commercial
Commercial, financial and agricultural		80,901		4,554	5.63			59,970		2,653		4.43
Real estate—construction and other		13,158		760	5.78			7,395		296		4.00
Real estate—mortgage		20,187		1,194	5.92			16,050		725		4.52
Lease financing		10,223		727	7.12			8,467		721		8.51
Foreign		8,035		303	3.77			7,144		187		2.61
Total commercial		132,504		7,538	5.69			99,026		4,582		4.63
Consumer
Real estate secured		77,152		4,511	5.85			54,928		2,981		5.43
Student loans		11,126		548	4.92			9,891		372		3.76
Installment loans		7,140		488	6.84			8,188		474		5.79
Total consumer		95,418		5,547	5.81			73,007		3,827		5.24
Total loans		227,922		13,085	5.74			172,033		8,409		4.89
Loans held for sale		15,293		874	5.71			16,735		739		4.42
Other earning assets		9,944		533	5.36			11,064		366		3.30
Total earning assets excluding derivatives		428,590		22,949	5.35			358,254		16,097		4.49
Risk management derivatives (a)		—		959	0.23			—		1,441		0.41
Total earning assets including derivatives		428,590		23,908	5.58			358,254		17,538		4.90
Cash and due from banks		12,524						11,311
Other assets		67,896						57,202
Total assets	$	509,010					$	426,767
LIABILITIES AND STOCKHOLDERS’ EQUITY
Interest-bearing deposits
Savings and NOW accounts		79,762		833	1.04			72,078		369		0.51
Money market accounts		96,826		1,950	2.01			79,526		794		1.00
Other consumer time		39,695		1,206	3.04			28,304		757		2.67
Foreign		13,922		422	3.03			7,933		115		1.45
Other time		11,947		436	3.66			8,301		163		1.98
Total interest-bearing deposits		242,152		4,847	2.00			196,142		2,198		1.12
Federal funds purchased and securities sold under repurchase agreements		54,302		1,673	3.08			47,321		637		1.35
Commercial paper		11,898		363	3.05			12,034		163		1.35
Securities sold short		10,279		341	3.31			11,025		318	��	2.88
Other short-term borrowings		6,675		124	1.87			6,087		55		0.90
Long-term debt		47,774		2,133	4.46			39,780		1,589		4.00
Total interest-bearing liabilities excluding derivatives		373,080		9,481	2.54			312,389		4,960		1.59
Risk management derivatives (a)		—		527	0.14			—		367		0.12
Total interest-bearing liabilities including derivatives		373,080		10,008	2.68			312,389		5,327		1.71
Noninterest-bearing deposits		62,438						51,700
Other liabilities		26,473						27,383
Stockholders’ equity		47,019						35,295
Total liabilities and stockholders’ equity	$	509,010					$	426,767
Interest income and rate earned—including derivatives			$	23,908	5.58	%			$	17,538		4.90	%
Interest expense and equivalent rate paid—including derivatives				10,008	2.34					5,327		1.49
Net interest income and margin—including derivatives			$	13,900	3.24	%			$	12,211		3.41	%

(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)	*	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
INCOME FROM CONTINUING OPERATIONS
Net income(GAAP)	A	$	1,707		1,665		1,650		1,621		1,448
Discontinued operations, net of income taxes(GAAP)			(214	)	—		—		—		—
Income from continuing operations(GAAP)			1,493		1,665		1,650		1,621		1,448
Merger-related and restructuring expenses(GAAP)			37		51		48		31		53
Earnings excluding merger-related and restructuring expenses, and discontinued operations	B		1,530		1,716		1,698		1,652		1,501
Other intangible amortization(GAAP)			57		63		69		72		74
Earnings excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C	$	1,587		1,779		1,767		1,724		1,575
RETURN ON AVERAGE COMMON STOCKHOLDERS’ EQUITY
Average common stockholders’ equity(GAAP)	D	$	46,407		47,328		47,114		47,231		42,644
Merger-related and restructuring expenses(GAAP)			146		96		52		11		169
Discontinued operations(GAAP)			(36	)	—		—		—		—
Average common stockholders’ equity, excluding merger-related and restructuring expenses and discontinued operations	E		46,517		47,424		47,166		47,242		42,813
Average intangible assets(GAAP)	F		(23,302	)	(23,195	)	(23,148	)	(23,020	)	(19,257	)
Average common stockholders’ equity, excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	G	$	23,215		24,229		24,018		24,222		23,556
Return on average common stockholders’ equity
GAAP	A/D		14.60	%	13.95		14.04		13.92		13.50
Excluding merger-related and restructuring expenses and discontinued operations	B/E		13.05		14.36		14.43		14.19		13.95
Return on average tangible common stockholders’ equity
GAAP	A/D+F		29.33		27.36		27.61		27.16		24.62
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C/G		27.11	%	29.14		29.50		28.86		26.59
RETURN ON AVERAGE ASSETS
Average assets(GAAP)	H	$	520,382		511,567		503,361		500,486		472,431
Average intangible assets(GAAP)			(23,302	)	(23,195	)	(23,148	)	(23,020	)	(19,257	)
Average tangible assets(GAAP)	I		497,080		488,372		480,213		477,466		453,174
Average assets(GAAP)			520,382		511,567		503,361		500,486		472,431
Merger-related and restructuring expenses(GAAP)			146		96		52		11		169
Discontinued operations(GAAP)			(36	)	—		—		—		—
Average assets, excluding merger-related and restructuring expenses and discontinued operations	J		520,492		511,663		503,413		500,497		472,600
Average intangible assets(GAAP)			(23,302	)	(23,195	)	(23,148	)	(23,020	)	(19,257	)
Average tangible assets, excluding merger-related and restructuring expenses and discontinued operations	K	$	497,190		488,468		480,265		477,477		453,343
Return on average assets
GAAP	A/H		1.30	%	1.29		1.31		1.31		1.22
Excluding merger-related and restructuring expenses and discontinued operations	B/J		1.17		1.33		1.35		1.34		1.26
Return on average tangible assets
GAAP	A/I		1.36		1.35		1.38		1.38		1.27
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	C/K		1.27	%	1.45		1.48		1.46		1.38

PAGE 22

WACHOVIA CORPORATION AND SUBSIDIARIES

RECONCILIATION OF CERTAIN NON-GAAP FINANCIAL MEASURES

(Unaudited)

		2005									2004
(In millions, except per share data)	*	Fourth Quarter			Third Quarter		Second Quarter		First Quarter		Fourth Quarter
OVERHEAD EFFICIENCY RATIOS
Noninterest expense(GAAP)	L	$	4,183		4,004		3,788		3,872		3,834
Merger-related and restructuring expenses(GAAP)			(58	)	(83	)	(90	)	(61	)	(116	)
Noninterest expense, excluding merger-related and restructuring expenses	M		4,125		3,921		3,698		3,811		3,718
Other intangible amortization(GAAP)			(93	)	(101	)	(107	)	(115	)	(113	)
Noninterest expense, excluding merger-related and restructuring expenses, and other intangible amortization	N	$	4,032		3,820		3,591		3,696		3,605
Net interest income(GAAP)		$	3,523		3,387		3,358		3,413		3,297
Tax-equivalent adjustment			52		53		53		61		60
Net interest income (Tax-equivalent)			3,575		3,440		3,411		3,474		3,357
Fee and other income(GAAP)			2,989		3,258		2,977		2,995		2,804
Total	O	$	6,564		6,698		6,388		6,469		6,161
Retail Brokerage Services, excluding insurance
Noninterest expense(GAAP)	P	$	888		874		861		867		908
Net interest income(GAAP)		$	172		152		142		143		144
Tax-equivalent adjustment			—		1		—		—		1
Net interest income (Tax-equivalent)			172		153		142		143		145
Fee and other income(GAAP)			914		905		880		886		906
Total	Q	$	1,086		1,058		1,022		1,029		1,051
Overhead efficiency ratios
GAAP	L/O		63.72	%	59.78		59.29		59.86		62.23
Excluding merger-related and restructuring expenses	M/O		62.84		58.55		57.87		58.92		60.34
Excluding merger-related and restructuring expenses, and brokerage	M-P/O-Q		59.07		54.05		52.86		54.12		54.99
Excluding merger-related and restructuring expenses, and other intangible amortization	N/O		61.41		57.06		56.19		57.15		58.50
Excluding merger-related and restructuring expenses, other intangible amortization and brokerage	N-P/O-Q		57.36	%	52.27		50.85		52.01		52.77
OPERATING LEVERAGE
Operating leverage(GAAP)		$	(312	)	92		5		269		368
Merger-related and restructuring expenses(GAAP)			(25	)	(8	)	30		(55	)	(10	)
Operating leverage, excluding merger-related and restructuring expenses			(337	)	84		35		214		358
Other intangible amortization(GAAP)			(6	)	(7	)	(8	)	1		15
Operating leverage, excluding merger-related and restructuring expenses, and other intangible amortization		$	(343	)	77		27		215		373
DIVIDEND PAYOUT RATIOS ON COMMON SHARES
Dividends paid per common share	R	$	0.51		0.51		0.46		0.46		0.46
Diluted earnings per common share(GAAP)	S	$	1.09		1.06		1.04		1.01		0.95
Merger-related and restructuring expenses(GAAP)			0.02		0.03		0.03		0.02		0.04
Other intangible amortization(GAAP)			0.04		0.04		0.04		0.05		0.05
Discontinued operations(GAAP)			(0.14	)	—		—		—		—
Diluted earnings per common share, excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	T	$	1.01		1.13		1.11		1.08		1.04
Dividend payout ratios
GAAP	R/S		46.79	%	48.11		44.23		45.54		48.42
Excluding merger-related and restructuring expenses, other intangible amortization and discontinued operations	R/T		50.50	%	45.13		41.44		42.59		44.23

* 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.