Wachovia Q1 08

--NI -350 mil, 2.3 bil Q2 07, reflecting market down valuation loss of $2 billion --Revenu 7.9 bil Parent Corp --Provision for credit losses of $2.8 billion, which exceeded net charge-offs by $2.1 billion. The provision largely reflected more severe deterioration in the residential housing market, particularly in specific markets in California and Florida, as well as the result of the refinements made to the credit reserve model for the payment option product. These refinements incorporate multiple and more granular factors regarding unprecedented consumer behavior, housing price deterioration and increased foreclosures. Net charge-offs were $765 million, or an annualized 0.66 percent of average net loans. Total nonperforming assets including loans held for sale were $8.4 billion, or 1.70 percent of loans, foreclosed properties and loans held for sale, largely reflecting increases in consumer real estate-related nonperforming assets due to the effects of the weakened housing industry. --Provision for end 2007 is 1.497 bil + net charge off this Q (765 mil) = 2.2 bil. 2.2/(8.4 + 2.2) = 20%, write off rate Corporate and Investment Banking •Market valuation losses, net of applicable hedges, of: •$339 million in subprime residential asset-backed collateralized debt obligations and other related exposures, compared with $818 million in fourth quarter 2007, excluding discontinued operations; •$521 million in commercial mortgage structured products, compared with $600 million in fourth quarter 2007; •$251 million in consumer mortgage structured products, compared with $123 million in fourth quarter 2007; •$309 million in leveraged finance net of fees, compared with a net $93 million gain in fourth quarter 2007; and •$144 million in non-subprime collateralized debt obligations and other structured products, compared with a $59 million net gain in fourth quarter 2007. Loan Portfolio --480 bil Q1 08 vs 462 bil Q4 07; 230 bil of them are consumer real esta secured allowance bal at the beg 3,514 provision for credit 175 loan losses (218) loan recover 63 allowance bal at the beg 3,534