Bank of America participates in Deutsche Bank conference call Transcript

The following is excerpted from the question-and-answer section of the transcript.

Question: Mike Mayo - Deutsche Bank - Analyst : Okay, great. Well, I'll start off here. I have some big picture questions. Looking out five to ten years, what is your vision for the industry? Do we wind up with two or three or four banks the size of Bank of America? How do the foreign banks, insurance firms, small banks all factor into the equation?

Question: Mike Mayo - Deutsche Bank - Analyst : And scale. You mentioned there might be a few megabanks. To tell you the truth, Liam, the metric supplied by Bank of America over the years seemed to fall short of what I would like to see personally. I ask this question each year. Why is it better to be a national bank as LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. MAY 22, 2007 / 3:00PM, BAC.N - Bank of America participates in Deutsche Bank conference call compared to when you were a small bank in North Carolina? Or put differently, why does one plus one equal more than two when it comes to linking together these disparate banks across the Company?

Question: Mike Mayo - Deutsche Bank - Analyst : I guess what I was getting at, Liam, is that all sounds good and certainly you've made great progress, but in terms of retention of customers, do you wind up becoming someone's bank for life? Do you have metrics around that? Because I think that's -- this lock-in of customers is what you get, but what's the bottom line impact of all this?

Question: Mike Mayo - Deutsche Bank - Analyst : I guess one question I get is, doesn't the law of large numbers kick in at some point?

Question: Mike Mayo - Deutsche Bank - Analyst : In other words, you've done great, you've mentioned all this growth in households and these different product lines, but since you're in the U.S., how much more can you really grow with your customers or in your markets?

Question: Mike Mayo - Deutsche Bank - Analyst : In terms of those aggregate profit pools, you say that's two times larger than any other profit pool available? What's your market share of that profit pool and where do you want to take that?

Question: Mike Mayo - Deutsche Bank - Analyst : Looking out over five to ten years, can you show us a picture of what Bank of America will look like in terms of geography or business mix for (inaudible) electronic or any other metric?

Question: Mike Mayo - Deutsche Bank - Analyst : You did not mention deposits on this list you just gave and I don't know if that would just be like the next one or if you were slicing it differently, but my question is, it seems like Bank of America is doing what I would call the two-step. You buy a company that increases deposits and then you reduce the level of deposits so you can buy again. So the question is, when and under what conditions would you accelerate your deposit gathering and that 10% national deposit market share, might you take that up to 20% some day with organic growth?

Question: Mike Mayo - Deutsche Bank - Analyst : Stepping back, when you look at the Company for the last 20 years even, the Company met its goal to become, A, the largest U.S. bank, and B, get its expense to revenue ratio under 50%. Everybody seemed to be on the same page and the management's generally in sync, but what metric or metrics are you managing the Company to, say, for the next decade?

Question: Mike Mayo - Deutsche Bank - Analyst : What is your wallet share with existing customers? Do you disclose that?

Question: Mike Mayo - Deutsche Bank - Analyst : Well, while we wait, we'll go to Chris Farr who covers asset managers at Deutsche Bank and also works with some of the money center banks. Chris?

Question: Mike Mayo - Deutsche Bank - Analyst : Operator.

Question: Adam Friedman - Millennium Partners - Analyst : Hi, Liam.

Question: Adam Friedman - Millennium Partners - Analyst : Just wanted to -- you mentioned many times on this call the value of your own website, the internet, eCommerce, customization through that platform and you also mentioned a large number of your customers are only using one of your many offerings. So, obviously, the opportunity here to upsell is rather large. I'm just wondering, I know Citigroup and some other competitors are streamlining their software that they're using to actually enable them to do this. But when you make all the acquisitions of the large banks, you have all these legacy software systems that are all servicing customers differently and then when the companies merge a lot of times, it's either their rebuilt in-house. I'm just wondering how focused are you guys on maybe using one central platform to really learn more about your customers so that you can get them to use more than one offering?

Question: Adam Friedman - Millennium Partners - Analyst : Okay, thanks. LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. MAY 22, 2007 / 3:00PM, BAC.N - Bank of America participates in Deutsche Bank conference call

Question: Mike Mayo - Deutsche Bank - Analyst : We have a question from Rob Rutschow, who covers mid-cap financials, the exchanges and some mid-cap banks for Deutsche Bank. Rob?

Question: Mike Mayo - Deutsche Bank - Analyst : All right, it's Mike again. I have an e-mail question asking about what metrics should investors be paying attention to, unemployment, mortgage default? I guess the question is, what's the state of the U.S. consumer? Gas prices are higher, you're seeing perhaps lower GDP growth, is there spillover from subprime mortgage, what's your read?

Question: Mike Mayo - Deutsche Bank - Analyst : Okay. One more e-mail question. Just wants some more color on your international expansion strategy? I'll just add my $0.02. What are your margins outside the U.S., what's your growth outside the U.S., and how does that compare to what you have in the U.S.?

Question: Mike Mayo - Deutsche Bank - Analyst : What percent of the earnings within your group are outside the U.S. and where do you think that goes?

Question: Mike Mayo - Deutsche Bank - Analyst : Okay. Operator?

Question: Mike Mayo - Deutsche Bank - Analyst : All right. We're pretty much at the end of the hour, Liam. Any kind of parting thoughts you want to leave us with regarding your strategy at Bank of America?

Question: Mike Mayo - Deutsche Bank - Analyst : That's great. Liam McGee, Bank of America, appreciate your time. A reminder, tomorrow, we have a conference call with the CEO of AllianceBernstein. That's same time, 11:00 a.m. on Wednesday and the call-in number, as it was today, 800-309-8606. And again, if you don't have our big bank book, please let your salesperson know. Thanks again, Liam. Thanks a lot, Mike. Bye-bye LSEG STREETEVENTS | www.lseg.com | Contact Us consent of LSEG. 'LSEG' and the LSEG logo are registered trademarks of LSEG and its affiliated companies. MAY 22, 2007 / 3:00PM, BAC.N - Bank of America participates in Deutsche Bank conference call