BANK OF AMERICA

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Bank of America Reports Record 2004 Earnings of $14.1 Billion, or $3.69 Per Share

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Supplemental fourth quarter 2004 financial information

Fourth quarter earnings rise to $.94 per share

All major lines of business achieve solid earnings growth

Commercial lending accelerates

Investment banking shows momentum

Card income continues to increase

Successful brand rollout complete across Northeast

CHARLOTTE, N.C., Jan. 18 /PRNewswire-FirstCall/ -- Bank of America Corporation today reported that fourth quarter net income rose 41 percent to $3.85 billion, or $.94 per share (diluted), from $2.73 billion, or $.92 per share, a year ago. Under purchase accounting rules, results reported for periods in 2003 and the first quarter of 2004 do not include the impact of FleetBoston Financial Corporation, which was acquired on April 1, 2004. Return on common equity in the fourth quarter was 15.63 percent.

For the full year, net income increased 31 percent to $14.1 billion, or $3.69 per share (diluted) from $10.8 billion, or $3.57 per share in 2003.

In addition to the impact of Fleet, the fourth quarter increase resulted from improving performance in all major business lines driven by the continued success in attracting, retaining and expanding customer relationships. Consumer accounts, deposit and card balances, credit and debit card purchase transaction volumes, trading, investment banking and assets under management all registered growth from the third quarter and the prior year.

The integration of Fleet remained on schedule as the major rebranding effort across the franchise was completed, systems conversions began and customer satisfaction and accounts continued to rise.

Fourth quarter earnings included merger and restructuring charges of $181 million after-tax, which reduced earnings by 4 cents per share.

"We are pleased with the year's successes and our position entering 2005," said Kenneth D. Lewis, president and chief executive officer. "We began 2004 with the objective of achieving a seamless integration of Fleet while not interrupting our momentum in the legacy Bank of America franchise. The Fleet transition is not only on schedule, but we have increased customer satisfaction during the year, hit or exceeded our customer account growth and profitability targets and achieved promised cost savings."

"While 2005 presents such challenges as a flattening yield curve and continued systems conversions in the Northeast, I couldn't be more satisfied with where Bank of America stands in meeting those challenges," said Lewis.

    Business Highlights

     - The company grew net new consumer checking accounts by 2.11 million in
       2004, compared to an increase of 1.25 million in 2003.  The number of
       accounts increased by 596,000 in the fourth quarter.

     - The company grew net new consumer savings products by 2.60 million in
       2004, compared to an increase of 640,000 in 2003.  The number of new
       savings products was 729,000 in the fourth quarter.

     - The company opened 5.59 million new consumer credit card accounts in
       2004, compared to 4.28 million in 2003.  The number of new consumer
       credit card accounts opened in the fourth quarter was 1.53 million.

     - Online banking active users increased 72 percent to 12.4 million,
       representing a 50 percent penetration of checking account customers.
       Of those users, 5.8 million use bill pay, an increase of 78 percent
       from a year ago.

     - For the year, both syndicated loans and leveraged loans were first in
       market share in the number of deals closed and were both second in the
       market for the dollar volume of deals closed.

     - In 2004, the company became the top U.S. deal manager in commercial
       mortgage-backed securities, issuing $11.8 billion in securities.

    Fleet Merger Highlights

     - During the quarter, the company successfully completed the rebranding
       of all banking centers in the former Fleet franchise.

     - The company opened 46,000 net new consumer checking accounts in the
       former Fleet franchise during the quarter, bringing its total in 2004
       to 184,000.  This surpassed the goal of opening 150,000 during the
       year.

     - In the Northeast, the company opened 75,000 net new consumer savings
       accounts, bringing its annual total to 196,000.  This surpassed its
       goal of opening 150,000 during the year.

     - Customer satisfaction across the Northeast continued to grow.

     - The company announced the opening of a new call center in Rhode Island
       to support customers in the Northeast.

    Fourth Quarter Financial Summary
    These are GAAP-reported results, which exclude Fleet results in 2003.

    Revenue

Revenue on a fully taxable-equivalent basis grew to $13.9 billion from $9.79 billion the previous year.

Net interest income on a fully taxable-equivalent basis was $7.96 billion compared to $5.75 billion a year earlier. In addition to the impact of Fleet, the increase was driven by the results of asset-liability management activities, consumer and middle-market commercial loan growth and domestic deposit growth. These increases were partially offset by the impact of lower trading-related contributions and large-corporate and foreign loan balances.

Noninterest income was $5.96 billion compared to $4.05 billion a year earlier. In addition to the impact of Fleet, these results were driven by record card income, higher service charges, investment and brokerage income, trading account profits and equity investment gains, offset by lower mortgage banking income, which resulted from lower origination volume and adjustments to the value of mortgage servicing rights.

During the quarter, the company realized $101 million in securities gains as it repositioned its mortgage-backed securities to reduce prepayment risk.

Efficiency

Based on strong revenue growth and expense control this quarter, the efficiency ratio improved to 52.69 percent. Noninterest expense was $7.33 billion compared to $5.29 billion a year ago, driven by the addition of Fleet. Pre-tax cost savings from the merger were $394 million during the quarter.

Credit Quality

All major commercial asset quality indicators showed positive trends. Credit card charge-offs grew as a result of card portfolio growth, the return of previously securitized loans to the balance sheet and increases in minimum payment requirements. Consumer asset quality remained strong in all other categories.

     - Provision for credit losses was $706 million, up from $650 million in
       the third quarter and $583 million a year earlier.

     - Net charge-offs were 0.65 percent of average loans and leases, or
       $845 million.  This compared to 0.57 percent, or $719 million, in the
       third quarter and 0.77 percent of average loans and leases, or
       $725 million, a year earlier.

     - Nonperforming assets were 0.47 percent of total loans, leases and
       foreclosed properties, or $2.46 billion, as of December 31, 2004.  This
       compared to 0.55 percent, or $2.84 billion, on September 30, 2004 and
       0.81 percent, or $3.02 billion, on December 31, 2003.

     - The allowance for loan and lease losses stood at 1.65 percent of loans
       and leases, or $8.63 billion, on December 31, 2004.  This compared to
       1.70 percent or $8.72 billion on September 30, 2004 and 1.66 percent,
       or $6.16 billion, on December 31, 2003.  As of December 31, 2004, the
       allowance for loan and lease losses represented 390 percent of
       nonperforming loans and leases, compared to 343 percent on
       September 30, 2004 and 215 percent on December 31, 2003.

    Capital Management

Total shareholders' equity was $99.6 billion on December 31, 2004, compared to $48.0 billion a year ago, and represented 9 percent of period-end assets of $1.11 trillion. The Tier 1 Capital Ratio was 8.10 percent, compared to 8.08 percent on September 30, 2004 and 7.85 percent a year ago.

During the quarter, Bank of America paid a cash dividend of $.45 per share. The company also issued 31.5 million shares, primarily related to employee stock options and ownership plans, and repurchased 34.1 million shares. Average common shares issued and outstanding were 4.03 billion in the fourth quarter, compared to 4.05 billion in the third quarter and 2.93 billion a year earlier.

2004 Full-Year Financial Summary

These are GAAP-reported results, which exclude Fleet results in 2003 and first quarter of 2004.

Revenue

Fully taxable-equivalent revenue grew to $49.6 billion from $38.6 billion in 2003.

Fully taxable-equivalent net interest income rose 34 percent to $29.5 billion. In addition to the impact of Fleet, the increase was driven by the results of asset-liability management activities, higher consumer loan levels and higher deposit levels. This was partially offset by reductions in large corporate and foreign loan portfolios as well as lower trading-related contributions and mortgage warehouse levels. The net interest yield declined 14 basis points to 3.26 percent.

Noninterest income grew 22 percent to $20.1 billion, driven by the impact of Fleet and the growth of card income, service charges, investment and brokerage fees and investment banking income. This was offset by lower mortgage banking income, which resulted from lower origination volume and adjustments to the value of mortgage servicing rights.

Securities gains were $2.12 billion compared to $941 million a year ago.

Efficiency

Noninterest expense grew 34 percent to $27.0 billion, driven by the impact of Fleet, merger and restructuring costs, higher personnel costs, revenue- related incentive compensation and increased occupancy and marketing expense. The efficiency ratio was 54.48 percent.

Credit Quality

Provision expense was $2.77 billion in 2004, a 2 percent decline from 2003. Net charge-offs totaled $3.11 billion, or 0.66 percent of loans and leases, compared to $3.11 billion, or 0.87 percent of loans and leases, in 2003.

2004 Full-Year Business Segment Results

Effective April 1, 2004, the company reorganized its business segments. What was formerly Consumer and Commercial Banking has been separated into two segments -- Consumer and Small Business Banking; and Commercial Banking. Wealth and Investment Management has added Premier Banking and the NYSE Specialist firm. Global Corporate and Investment Banking is relatively unchanged, and Corporate Other includes Latin America, equity investments, liquidating businesses and treasury.

Consumer and Small Business Banking

Consumer and Small Business Banking earnings increased 15 percent in 2004 to $6.55 billion. Revenue of $26.9 billion was up 28 percent.

Strong business results were partially offset by significantly increased amortization of deposit intangibles and additional expenses associated with the Fleet merger.

Excluding the impact of Fleet, average deposits increased while loan balances rose, led by growth in credit card and home equity loans. Credit and debit card purchase volumes also grew as more customers moved away from writing checks and using cash.

Revenue and profit were negatively impacted by a decrease in mortgage banking income, which resulted from lower origination volume and adjustments to the value of mortgage servicing rights. Results included higher provision expense of $3.34 billion, reflecting growth in the credit card portfolio, securitizations returning to the balance sheet, increases in minimum payment requirements and higher charge-offs.

Commercial Banking

Commercial Banking earnings increased 93 percent to $2.83 million as revenue rose 49 percent to $6.72 billion.

Provision expense was negative $241 million as a result of improved credit quality.

Excluding the impact of Fleet, commercial lending grew modestly during the year. Increased volume late in the year was an indication of corporate confidence in the economy. Clients also increased demand for middle market investment banking and treasury management services. Deposits also rose.

Global Corporate and Investment Banking

Global Corporate and Investment Banking earnings rose 9 percent to $1.95 billion as revenue increased 9 percent to $9.05 billion.

Provision expense was negative $459 million for the year, reflecting continued improvement in credit quality.

Excluding the impact of Fleet, investment banking results increased, reflecting the company's continuing platform build-out and market share gains in several product lines. Trading-related revenue also increased, led by demand for fixed income and foreign exchange products. Also driving trading- related revenue were lower costs to hedge the corporate loan portfolio.

Wealth and Investment Management

Wealth and Investment Management earnings grew 28 percent to $1.58 billion. Revenue rose 47 percent to $5.92 billion.

Provision expense was negative $20 million as a result of improved credit quality.

Assets under management increased to $451.5 billion, due primarily to the Fleet merger.

Excluding the impact of Fleet, growth in assets under management and earnings was driven by strong performance in the credit portfolios of Premier and the Private Bank, increased market valuations in the asset management portfolio and a growing focus on relationship development and a broader product offering.

Corporate Other

Corporate Other earned $1.23 billion for the year, compared to $605 million in 2003. Principal Investing earned $166 million in 2004. Latin America earned $310 million during the year. Securities gains were also included in this segment.

Note: Kenneth D. Lewis, president and chief executive officer, will present the company's 2005 outlook and Marc Oken, chief financial officer, will discuss fourth quarter and full year 2004 results in a conference call at 9:30 a.m. (Eastern Time) today. The call can be accessed via a webcast available on the Bank of America Web site at http://www.bankofamerica.com/investor/ .

Bank of America is one of the world's largest financial institutions, serving individual consumers, small businesses and large corporations with a full range of banking, investing, asset management and other financial and risk-management products and services. The company provides unmatched convenience in the United States, serving 33 million consumer relationships through more than 5,800 retail banking offices and 16,700 ATMs and through award-winning online banking with more than twelve million active users. Bank of America is the No. 1 Small Business Administration Lender in the United States by the SBA. The company serves clients in 150 countries and has relationships with 96 percent of the U.S. Fortune 500 companies and 82 percent of the Global Fortune 500. Bank of America Corporation stock (ticker: BAC) is listed on the New York Stock Exchange.

Forward-Looking Statements

This press release contains forward-looking statements, including statements about the financial conditions, results of operations and earnings outlook of Bank of America Corporation. The forward-looking statements involve certain risks and uncertainties. Factors that may cause actual results or earnings to differ materially from such forward-looking statements include, among others, the following: 1) projected business increases following process changes and other investments are lower than expected; 2) competitive pressure among financial services companies increases significantly; 3) general economic conditions are less favorable than expected; 4) political conditions including the threat of future terrorist activity and related actions by the United States military abroad may adversely affect the company's businesses and economic conditions as a whole; 5) changes in the interest rate environment reduce interest margins and impact funding sources; 6) changes in foreign exchange rates increases exposure; 7) changes in market rates and prices may adversely impact the value of financial products; 8) legislation or regulatory environments, requirements or changes adversely affect the businesses in which the company is engaged; 9) litigation liabilities, including costs, expenses, settlements and judgments, may adversely affect the company or its businesses; and 10) decisions to downsize, sell or close units or otherwise change the business mix of any of the company. For further information regarding Bank of America Corporation, please read the Bank of America reports filed with the SEC and available at http://www.sec.gov .



    Bank of America
    Selected Financial Data (1)

    (Dollars in millions,
     except per share           Three Months              Twelve Months
     data; shares in          Ended December 31         Ended December 31
     thousands)               2004         2003         2004         2003

    Financial Summary

    Earnings                  $3,849       $2,726      $14,143      $10,810
        Earnings per
         common share           0.95         0.93         3.76         3.63
        Diluted earnings
         per common share       0.94         0.92         3.69         3.57

    Dividends paid per
     common share               0.45         0.40         1.70         1.44
    Closing market price
     per common share          46.99        40.22        46.99        40.22
    Average common shares
     issued and
     outstanding           4,032,979    2,926,494    3,758,507    2,973,407
    Average diluted common
     shares issued and
     outstanding           4,106,040    2,978,962    3,823,943    3,030,356

    Summary Income Statement

    Net interest income       $7,750       $5,586      $28,797      $21,464
    Total noninterest income   5,964        4,049       20,097       16,450
    Total revenue             13,714        9,635       48,894       37,914
    Provision for credit
     losses                      706          583        2,769        2,839
    Gains on sales of
     securities                  101          139        2,123          941
    Other noninterest expense  7,062        5,288       26,409       20,155
    Merger and restructuring
     charges                     272            -          618            -
    Income before income
     taxes                     5,775        3,903       21,221       15,861
    Income tax expense         1,926        1,177        7,078        5,051
    Net income                $3,849       $2,726      $14,143      $10,810

    Summary Average Balance Sheet

    Total loans and leases  $515,463     $371,071     $472,645     $356,148
    Securities               171,173       59,197      150,171       70,666
    Total earning assets     998,004      666,780      905,302      649,548
    Total assets           1,152,551      764,186    1,044,660      749,056
    Total deposits           609,936      418,840      551,559      406,233
    Shareholders' equity      98,100       48,293       84,183       49,204
    Common shareholders'
     equity                   97,828       48,238       83,953       49,148

    Performance Indices

    Return on average assets    1.33 %       1.42 %       1.35 %       1.44 %
    Return on average
     common shareholders'
     equity                    15.63        22.42        16.83        21.99

    Credit Quality

    Net charge-offs             $845         $725       $3,113       $3,106
        Annualized net
         charge-offs as a
         % of average
         loans and leases
         outstanding            0.65 %       0.77 %       0.66  %      0.87 %
    Managed credit card
     net losses as a % of
     average managed credit
     card receivables           5.90         5.14         5.63         5.36



                                                      At December 31
                                                  2004              2003
    Balance Sheet Highlights

    Loans and leases                            $521,837          $371,463
    Total securities                             195,073            66,629
    Total earning assets                         948,083           619,091
    Total assets                               1,110,457           719,483
    Total deposits                               618,570           414,113
    Total shareholders' equity                    99,645            47,980
    Common shareholders' equity                   99,374            47,926
        Book value per share                       24.56             16.63

    Total equity to assets ratio (period end)       8.97 %            6.67 %

    Risk-based capital ratios:
         Tier 1                                     8.10 *            7.85
         Total                                     11.63 *           11.87

    Leverage ratio                                  5.82 *            5.73

    Period-end common shares issued and
     outstanding                               4,046,546         2,882,288

    Allowance for credit losses:
      Allowance for loan and lease losses         $8,626            $6,163
      Reserve for unfunded lending commitments       402               416
           Total                                  $9,028            $6,579
    Allowance for loan and lease losses
     as a % of total loans and leases               1.65 %            1.66 %
    Allowance for loan and lease losses
     as a % of total nonperforming loans
     and leases                                      390               215
    Total nonperforming loans and leases          $2,213            $2,873
    Total nonperforming assets                     2,455             3,021
    Nonperforming assets as a % of:
         Total assets                               0.22 %            0.42 %
         Total loans, leases and
          foreclosed properties                     0.47              0.81
    Nonperforming loans and leases as a %
     of total loans and leases                      0.42              0.77

    Other Data

    Full-time equivalent employees               175,742           133,549
    Number of banking centers - domestic           5,885             4,277
    Number of ATMs - domestic                     16,771            13,241

     * Preliminary data

      Information for periods after April 1, 2004 includes the FleetBoston
               acquisition; prior periods have not been restated.



    BUSINESS SEGMENT RESULTS
                                                                     Global
                                                                    Corporate
                                          Consumer and                 and
                                         Small Business Commercial Investment
                                             Banking     Banking     Banking
     Three Months Ended December 31, 2004
    Total revenue (FTE) (2)                   $7,589      $1,946     $2,203
    Net income                                 1,763         887        596
    Shareholder value added                      802         282        308
    Return on average equity                   17.46 %     15.47 %    21.81 %
    Average loans and leases                $154,506    $142,610    $34,246

     Three Months Ended December 31, 2003
    Total revenue (FTE) (2)                   $5,344      $1,201     $1,935
    Net income                                 1,431         410        512
    Shareholder value added                    1,048         252        305
    Return on average equity                   37.49 %     27.68 %    26.38 %
    Average loans and leases                 $95,408     $94,996    $31,034

     Year Ended December 31, 2004
    Total revenue (FTE) (2)                  $26,857      $6,722     $9,049
    Net income                                 6,548       2,833      1,950
    Shareholder value added                    3,390         884        891
    Return on average equity                   19.89 %     15.34 %    19.46 %
    Average loans and leases                $137,357    $129,671    $34,237

     Year Ended December 31, 2003
    Total revenue (FTE) (2)                  $20,930      $4,517     $8,334
    Net income                                 5,706       1,471      1,794
    Shareholder value added                    4,367         846        893
    Return on average equity                   42.25 %     25.01 %    21.35 %
    Average loans and leases                 $92,776     $93,378    $36,640

     n/m = not meaningful



    BUSINESS SEGMENT RESULTS
                                                Wealth and
                                                Investment          Corporate
                                                Management            Other
     Three Months Ended December 31, 2004
    Total revenue (FTE) (2)                        $1,676               $506
    Net income                                        477                126
    Shareholder value added                           239                (97)
    Return on average equity                        20.39  %             n/m
    Average loans and leases                      $47,948           $136,153

     Three Months Ended December 31, 2003
    Total revenue (FTE) (2)                        $1,203               $111
    Net income                                        428                (55)
    Shareholder value added                           313               (475)
    Return on average equity                        39.08  %             n/m
    Average loans and leases                      $37,660           $111,973

     Year Ended December 31, 2004
    Total revenue (FTE) (2)                        $5,918             $1,064
    Net income                                      1,584              1,228
    Shareholder value added                           782                 36
    Return on average equity                        20.17  %             n/m
    Average loans and leases                      $44,049           $127,331

     Year Ended December 31, 2003
    Total revenue (FTE) (2)                        $4,030               $746
    Net income                                      1,234                605
    Shareholder value added                           854             (1,339)
    Return on average equity                        33.94  %             n/m
    Average loans and leases                      $37,675            $95,679

    n/m = not meaningful



                                    Three Months Ended   Twelve Months Ended
                                        December 31          December 31
                                      2004      2003       2004       2003
    SUPPLEMENTAL FINANCIAL DATA

    Fully taxable-equivalent basis
     data (2)
    Net interest income              $7,956    $5,745    $29,513    $22,107
    Total revenue                    13,920     9,794     49,610     38,557
    Net interest yield                 3.18 %    3.43 %     3.26 %     3.40 %
    Efficiency ratio                  52.69     53.98      54.48      52.27

    Reconciliation of net income to
     operating earnings
    Net income                       $3,849    $2,726    $14,143    $10,810
    Merger and restructuring charges    272         -        618          -
    Related income tax benefit          (91)        -       (207)         -
    Operating earnings               $4,030    $2,726    $14,554    $10,810

    Operating Basis
    Diluted earnings per common
     share                            $0.98     $0.92      $3.80      $3.57
    Return on average assets           1.39 %    1.42 %     1.39 %     1.44 %
    Return on avg common
     shareholders' equity             16.37     22.42      17.32      21.99
    Efficiency ratio                  50.73     53.98      53.23      52.27

    Reconciliation of net income to
     shareholder value added
    Net income                       $3,849    $2,726    $14,143    $10,810
    Amortization of intangibles         209        54        664        217
    Merger and restructuring
     charges, net of tax benefit        181         -        411          -
    Capital charge                   (2,705)   (1,337)    (9,235)    (5,406)
    Shareholder value added          $1,534    $1,443     $5,983     $5,621

     (1) Certain prior period amounts have been reclassified to conform to
         current period presentation.
     (2) Fully taxable-equivalent (FTE) basis is a performance measure used by
         management in operating the business that management believes
         provides investors with a more accurate picture of the interest
         margin for comparative purposes.

     Information for periods after April 1, 2004 includes the FleetBoston
              acquisition; prior periods have not been restated.

SOURCE Bank of America Corporation CONTACT: Investors, Kevin Stitt,
+1-704-386-5667, or
Lee McEntire,
+1-704-388-6780, or
Leyla Pakzad, +1-704-386-2024, or

Media, Eloise Hale,
+1-704-387-0013,
All of Bank of America Corporation
Web site: http://www.bankofamerica.com
http://www.bankofamerica.com/investor
(BAC)


CO: Bank of America Corporation; FleetBoston Financial Corporation