BANK OF AMERICA

Investor Relations

BankAmerica Earns $1.9 Billion, or $1.08 Per Diluted Share, in First Quarter

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CHARLOTTE, NC, April 19, 1999 - BankAmerica Corporation today reported net income of $1.91 billion, or $1.10 ($1.08 diluted) per share, for the first quarter of 1999, a 44 percent increase from net income of $1.33 billion, or $.77 ($.75 diluted) per share, a year earlier. The first quarter a year ago included a merger-related charge of $642 million after tax. Excluding that charge, operating income a year ago was $1.97 billion, or $1.14 ($1.11 diluted) per share. First quarter 1999 earnings grew significantly from fourth quarter 1998 operating earnings of $1.60 billion, or $.92 ($.91 diluted) per share.

The return on common equity was 16.8 percent and the return on assets was 1.27 percent.

Cash earnings - which exclude the amortization of intangibles - were $2.14 billion, or $1.23 ($1.20 diluted) per share in the latest quarter. Return on average tangible common shareholders' equity was 27.4 percent.

"We are pleased with our first quarter results, which include continued strong performance in Consumer Banking and a significant improvement in Global Corporate and Investment Banking," said Hugh L. McColl, Jr., BankAmerica chairman and chief executive officer. "Our merger transition is on track, and we expect the benefits of lower costs and enhanced revenue opportunities to positively impact earnings in the coming quarters."

First Quarter Earnings (compared to a year ago)

Lower expenses - primarily due to merger-related savings - stronger trading results and continued solid loan growth were offset by lower other income, investment banking revenue and securities gains.

Net Interest Income

Fully taxable-equivalent net interest income of $4.65 billion was virtually unchanged from a year earlier, as loan and deposit growth and deposit pricing initiatives offset the impact of asset securitizations, loan sales and spread compression. Average managed loans grew 11 percent to $385 billion, reflecting increases in both consumer and business loans. The net yield on earning assets declined by 23 basis points to 3.58 percent due to a higher level of investment securities and lower loan and deposit spreads.

Noninterest Income

Noninterest income declined 8 percent to $3.22 billion, reflecting lower other income and investment banking revenue. Trading results were up from last year's strong performance. Credit card income and deposit fees also rose. Investment banking results, despite continuing improvements over recent quarters, remained below last year's strong performance.

Securities gains of $130 million were significantly below the $213 million recorded in the first quarter of 1998.

Efficiency

Noninterest expense decreased by more than 5 percent to $4.45 billion, reflecting cost reductions resulting from recent mergers somewhat offset by continued spending on transition projects associated with the merger of NationsBank and BankAmerica. Personnel expense dropped by more than 4 percent, and other operating expenses were also reduced. The efficiency ratio was 57 percent, an improvement from 58 percent a year earlier.

Credit Quality

The provision for credit losses in the first quarter was $510 million, the same as a year earlier. Net charge-offs remained virtually flat from a year ago at $519 million, equal to .58 percent of loans and leases, a 3-basis-point improvement from a year ago.

Nonperforming assets were $3.12 billion, or .86 percent of loans, leases and foreclosed properties on March 31, 1999, compared to $2.69 billion, or .79 percent a year earlier. The allowance for credit losses totaled $7.12 billion on March 31, 1999, equal to 251 percent of nonperforming loans and 1.96 percent of loans and leases. The allowance was $6.76 billion, or 1.98 percent of loans and leases, a year earlier.

Capital Strength

Total shareholders' equity rose 4 percent to $46.8 billion at March 31, 1999. This represented 7.62 percent of period-end assets, compared to 7.77 percent on March 31, 1998. Book value per common share rose 4 percent from a year earlier to $26.86 at March 31, 1999.

Business Segment Results

Consumer Banking, which serves individuals and small businesses, earned $873 million, while Commercial Banking, which serves companies with from $10 million to $500 million in revenue, earned $197 million. Together, they represented 56 percent of the company's net income. Global Corporate and Investment Banking, which serves large corporate customers, earned $492 million, representing 26 percent of the company's earnings. Principal Investing and Wealth Management, which encompasses the private bank, trust, investment management, mutual funds, retail brokerage and principal investing, earned $209 million, representing 11 percent.

BankAmerica Corporation, with $614 billion in total assets, is the largest bank in the United States. It has full-service operations in 22 states and the District of Columbia and provides financial products and services to 30 million households and 2 million businesses, as well as providing international corporate financial services for business transactions in 190 countries. BankAmerica Corporation stock (ticker: BAC) is listed on the New York, Pacific and London stock exchanges and certain shares are listed on the Tokyo Stock Exchange.


BANKBANKAMERICA CORPORATION 


                                                     THREE MONTHS
                                                     ENDED MARCH 31
                                                  1999           1998
    FINANCIAL SUMMARY
    (In millions, except per-share data)

    Operating net income                         $1,914        $1,973
     Operating earnings
      per common share                             1.10          1.14
     Diluted operating earnings
      per common share                             1.08          1.11
    Cash basis earnings (1)                       2,136         2,201
     Cash basis earnings per common share          1.23          1.27
     Cash basis diluted earnings
      per common share                             1.20          1.24
    Dividends paid per common share                 .45           .38
    Price per share of common stock
      at period end                               70.63         72.94
    Average common shares                     1,737.562     1,724.490
    Average diluted common shares             1,779.708     1,773.015
    
    SUMMARY INCOME STATEMENT (Operating Basis)
    (Taxable-equivalent in millions)
    
    Net interest income                          $4,645        $4,659
    Provision for credit losses                    (510)         (510)
    Gains on sales of securities                    130           213
    Noninterest income                            3,223         3,493
    Other noninterest expense                    (4,453)       (4,704)

    Income before income taxes                    3,035         3,151
    Income taxes - including FTE adjustment       1,121         1,178
    Operating net income                         $1,914        $1,973

    SUMMARY BALANCE SHEET 
    (Average balances in billions)

    Loans and leases                           $360.746      $341.970
    Managed loans and leases(2)                 384.933       347.451
    Securities                                   75.830        65.787
    Earning assets                              523.682       493.821
    Total assets                                609.624       578.841
    Deposits                                    345.931       339.867
    Shareholders' equity                         46.279        43.628
    Common shareholders' equity                  46.208        42.953
    
    
    PERFORMANCE INDICES (Operating Basis)
    
    Return on average common 
     shareholders' equity                         16.78%       18.52%
    Return on average tangible
     common shareholders' equity                  27.44        32.57 
    Return on average assets                       1.27         1.38 
    Return on average tangible 
     assets                                        1.46         1.59 
    Net interest yield                             3.58         3.81 
    Efficiency ratio                              56.59        57.72 
    Cash basis efficiency ratio                   53.76        54.92 
    Net charge-offs (in millions)                  $519         $516 
     % of average loans and leases                  .58%         .61%
    Managed credit card net charge-offs 
     as a % of average managed credit
     card receivables                              6.01         6.78 

    REPORTED RESULTS (Including Merger-Related Charges)
    (In millions, except per-share data)

    Net income                                    $1,914      $1,331 
     Earnings per common share                      1.10         .77 
     Diluted earnings per common share              1.08         .75 
    Return on average common
     shareholders' equity                          16.78       12.46 

    (1) Cash basis earnings equal operating net income excluding
        amortization of intangibles.
    (2) Prior periods are restated for comparison (e.g. acquisitions,
        divestitures and securitizations).
    (3) Ratios and amounts for 1998 have not been restated to reflect
        the impact of the BankAmerica merger.



                                                        MARCH 31
                                                    1999       1998
    BALANCE SHEET HIGHLIGHTS
    (In billions, except per-share data)

    Loans and leases                              $363.102   $341.219
    Securities                                      78.469     67.325
    Earning assets                                 529.980    493.428
    Total assets                                   614.245    580.211
    Deposits                                       343.317    344.447
    Shareholders' equity                            46.831     45.104
    Common shareholders' equity                     46.761     44.430
     Per share                                       26.86      25.72
    
    Total equity to assets ratio
     (period-end)                                    7.62%      7.77%

    Risk-based capital(3)
     Tier 1 capital ratio                             7.40       6.80
     Total capital ratio                             11.17      11.19

    Leverage ratio(3)                                 6.47       5.64
    
    Common shares issued and
     outstanding (in millions)                   1,740.872  1,727.746
    
    Allowance for credit losses                     $7.123     $6.763
    Allowance for credit losses
     as a % of  loans and leases                       1.96%      1.98%
    Allowance for credit losses 
     as a % of nonperforming loans                  250.99     279.44
    Nonperforming loans                             $2.838     $2.420
    Nonperforming assets                             3.120      2.690
    Nonperforming assets as a % of:
     Total assets                                      .51%       .46%
     Loans, leases and foreclosed properties           .86        .79 

    OTHER DATA

    Full-time equivalent headcount                 166,422    179,607
    Banking centers                                  4,676      5,010
    ATMs                                            14,229     14,630


    BUSINESS SEGMENT RESULTS - Three months ended March 31, 1999
    (In millions)


                                     OPERATING     AVERAGE        RETURN ON
                          TOTAL         NET         LOANS       RISK-ADJUSTED
                         REVENUE       INCOME     AND LEASES       EQUITY
                                                              
    Consumer Banking       $4,317         $873     $176,513          19%
    Commercial Banking        717          197       55,585          17 
    Global Corporate and
      Investment Banking    2,040          492      112,121          16 
    Principal Investing
     and Wealth Management
     Group                    685          209       18,214          29

First quarter 1999 financial information for investors