Bank of America Q1 08

Overall --earnings declined to $1.21 billion from $5.26 billion a year earlier --The primary factors reducing first-quarter earnings were the following: • Provision expense increased by $4.78 billion from a year-ago, to $6.01 billion due to rising credit costs – particularly in the home equity, small business and homebuilder portfolios – including a $3.30 billion increase to the reserve. • Trading-related losses were $1.31 billion compared with income of $1.66 billion a year earlier, driven primarily by $1.47 billion in writedowns of collateralized debt obligations (CDOs) and $439 million in writedowns of leveraged loans. Trading-related losses were $5.15 billion in the fourth quarter of 2007, which included CDO-related writedowns of $5.28 billion. Credit --net charge off 2.7 bil (1.25% of avg loan), 1.4 bil (0.81%) Q1 07 (Q4 07 national net charge off 0.83%) --allowance 14.9 bil(1.71 of total loan), 8.7 bil (1.2%) (1.29 Q4 07 national) --> conservative allowance --non performing 7.8 bil (0.9% of loan) (1.4 Q4 07 national) -> lower than national, relative higher quality loans --Tier 1 capital 7.51%, 8.57% Q1 07