4B to $21.2B also driven by the acquisitions completed during the period. As a result Earnings per Share on a Net Income Diluted basis rose 13.61% from $4.04 to $4.59. In the period between 6/30/06 and 3/31/07, Revenues increased 5.4%, or $1.6B based on revenues of $28.8B rising to $30.4B. Cost of Revenues in the same fiscal period rose $1.8B from $11.6B to $13.2B.

Net Income during the period of 6/30/06 to 3/31/07 dropped $220M from $5.4B to $5.2B, a 4% reduction in Net Income during the period.

Balance Sheet Variance Analysis

The most significant variance sin the 12/31/05 to 12/31/06 timeframe reflect the impact of acquisitions on Bank of America's assets. In this fiscal period Fixed Assets increased 18.87% from $7.7B to $9.2B. Total Assets increased 13% from $1.291B to $1.459B.

Total Long-Term Debt increased 44.7% in the same financial period, rising from $100M to $146M, a direct result of the cost of acquisitions.

In the financial period between 6/30/06 and 3/31/07, Cash and Cash equivalents rose 13.6% from $286M to $324M.

Long-term debt increased in the same fiscal period from $129M to $152M, an 18.21% increase overall.

Ratio Variance Analysis

In the period from 12/31/05 to 12/31/06, the largest variance occurred on Return on Assets (ROA), which grew 14.17% in the f8iscal period from 1.27 to 1.45. The Quick Ratio dropped 3% in the same fiscal period, and Net Profit margin % also decreased, by 6.35%. Pre-Tax Margins also decreased 4.69% during this period. For a complete trending of these ratios please see Table 2.

In the period from 6/30/06 to 3/31/07, Long-Term Debt-to-Equity increased 11.88% and Total Debt to Equity increased 14.85%. Pre-Tax Gross Margin dropped by 12.68% in the same fiscal period, the largest decline of any calculated ratio in the calculated set.

Summary

For Bank of America, the challenges are first to keep the strong growth Retail banking and Card Services moving forward, including working to ensure the integration of the Fleet acquisition is completed and contributes to growth in market share in key global locations including the U.K. The effects of the company's growth-by-acquisitions strategy can be seen throughout the financial analyses provided here, including the impact on revenues and debt. The Global Wealth and Investment Management Business Group, by far the most under-performing of all Bank of America groups, is most likely going to see selective and highly targeted acquisitions in nations that bank of America sees potential to grow this Business Groups' performance. Global Corporate and Investment Banking will seek to compete for effectively with its Business Lending Segment, and look to bolster Capital Markets and Advisory Services, which is considered 2nd tier by many investment analysts. Clearly Bank of America will be challenged to grow their earnings beyond Retail Banking and Card Services in the near-term.

Table 2: Bank of America Ratio Analysis (FY 2006-2000)

Bank of America Corp. Financial Ratio Analysis

Profitability Ratios 12/31/2006 12/31/2005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000 Return on Equity (%) 15.62-16.22-14.19-22.53-18.38-14-15.78 Return on Assets (%) 1.45 1.27 1.27 1.47 1.4-1.09 1.17 Return on Investment 13.35-10.48-10.46-13.29-15.94-20.44-21.81 EBITDA of Revenue (%) 29.89-30.86-34.92-34.62-30.4-22.31-23.49 Operating Margin (%) 27.43-28.78-32.42-32.37-28.02-19.05-20.4 Pre-Tax Margin 27.43-28.78-32.42-32.37-28.02-19.05-20.4 Net Profit Margin (%) 18.13-19.36-21.61-22.06-19.95-12.79-13.01 Effective Tax Rate (%) 33.9-32.74-33.35-31.85-28.8-32.87-36.23 Liquidity Indicators Quick Ratio 0.32 0.33 0.27 0.32 0.28 0.24 0.23 Current Ratio 0.34 0.35 0.31 0.39 0.35 0.29 0.26 Working Capital/Total Assets -0.48 -0.5 -0.52 -0.47 -0.49 -0.52 -0.55 Debt Management Current Liabilities/Equity 7.9-9.91 8.38-11.65 9.94 9.45-10.04 Total Debt to Equity 1.1-1-0.99 1.57 1.22 1.29 1.42 Long-Term Debt to Assets 0.1-0.08 0.09 0.1-0.09 0.1-0.11 Asset Management 12/31/2000 Revenues/Total Assets 0.08 0.07 0.06 0.07 0.07 0.09 0.09...

Income Statements (2000-2006)
12/31/2006 12/31/2005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000 Interest & fees on loans & leases $48,274 $34,843 $28,216 $21,668 $22,030 $27,166 $31,872 Interest & dividends on securities $11,655 $10,937 $7,265 $3,160 $4,035 $3,706 $5,045 Fed funds sold & secs purch und resell agree $7,823 $5,012 $2,043 $1,373 $870 $1,414 $2,354 Trading account assets $7,232 $5,743 $4,016 $3,935 $3,811 $3,623 $2,725 Other interest income $3,601 $2,091 $1,687 $1,507 $1,415 $2,384 $1,262 Total interest income $78,585 $58,626 $43,227 $31,643 $32,161 $38,293 $43,258 Deposits $14,480 $9,492 $6,275 $4,908 $5,434 $8,886 $11,010 Short-term borrowings $19,840 $11,615 $4,434 $1,951 $2,089 $4,167 $7,957 Trading account liabilities $2,640 $2,364 $1,317 $1,286 $1,260 $1,155 $892 Long-term debt $7,034 $4,418 $2,404 $2,034 $2,455 $3,795 $4,957 Total interest expense $43,994 $27,889 $14,430 $10,179 $11,238 $18,003 $24,816 Net interest income $34,591 $30,737 $28,797 $21,464 $20,923 $20,290 $18,442 Provision for credit losses -- - $2,535 Net interest inc after prov for credit loss -- - $15,907 Gain on sales of securities -- - $25 Consumer service charges -- $3,230 $2,986 $2,866 $2,654 Corporate service charges -- $2,388 $2,290 $2,078 $1,946 Total service charges -- $5,618 $5,276 $4,944 $4,600 Service charges - $7,704 $6,989 -- Consumer investment & brokerage service -- $1,559 $1,544 $1,546 $1,466 Corporate investment & brokerage service -- $792 $693 $566 $463 Total investment & brokerage service -- $2,351 $2,237 $2,112 $1,929 Card income $14,293 $5,753 $4,588 $3,052 $2,620 $2,421 $2,229 Service charges $8,224 -- - Investment & brokerage services $4,456 $4,184 $3,627 -- Investment banking income $2,317 $1,856 $1,886 $1,736 $1,545 $1,579 $1,512 Equity investment gains (losses) $3,189 $2,040 $861 $215 ($280) $291 $1,054 Trading accounts profits $3,166 $1,812 $869 $409 $778 $1,842 $1,830 Mortgage banking income $541 $805 $414 $1,922 $751 $593 $560 Other income $2,246 $1,200 $863 $1,119 $644 $566 $775 Total noninterest income $38,432 $25,354 $20,097 $16,422 $13,571 $14,348 $14,489 Total revenues $73,023 $56,091 $48,894 $37,886 $34,494 $34,638 - Provision for credit losses $5,010 $4,014 $2,769 $2,839 $3,697 $4,287 - Gains on sales of securities ($443) $1,084 $2,123 $941 $630 $475 - Personnel expense $18,211 $15,054 $13,473 $10,446 $9,682 $9,829 $9,400 Occupancy expense $2,826 $2,588 $2,379 $2,006 $1,780 $1,774 $1,682 Equipment expense $1,329 $1,199 $1,214 $1,052 $1,124 $1,115 $1,173 Marketing expense $2,336 $1,255 $1,349 $985 $753 $682 $621 Professional fees $1,078 $930 $836 $844 $525 $564 $452 Amortization of intangibles $1,755 $809 $664 $217 $218 $878 $864 Data processing $1,732 $1,487 $1,325 $1,104 $1,017 $776 $667 Telecommunications $945 $827 $730 $571 $481 $484 $527 Other general operating $4,580 $4,120 $4,439 $2,902 $2,856 $2,687 $2,114 General & administrative & other expenses -- $615 $583 Business exit costs -- $1,305 - Merger & restructuring charges $805 $412 $618 -- $550 Total noninterest expense $35,597 $28,681 $27,027 $20,127 $18,436 $20,709 $18,083 Income before income taxes $31,973 $24,480 $21,221 $15,861 $12,991 $10,117 $11,788 Current federal income taxes $7,398 $5,229 $6,392 $4,642 -- $3,093 Current state income taxes $796 $676 $683 $412 -- $202 Current foreign income taxes $796 $415 $405 $260 -- $328 Total current income taxes $8,990 $6,320 $7,480 $5,314 -- $3,623 Deferred federal income taxes $1,807 $1,577 ($407) ($222) -- $552 Deferred state income taxes $45 $85 ($11) ($45) -- $96 Deferred foreign income taxes ($2) $33 $16 $4 -- Total deferred income taxes $1,850 $1,695 ($402) ($263) -- $648 Income tax expense (benefit) $10,840 $8,015 $7,078 $5,051 $3,742 $3,325 $4,271 Net income $21,133 $16,465 $14,143 $10,810 $9,249 $6,792 $7,517

Table 4: Bank of America Corp. Balance Sheet Comparison (2000-2006)

12/31/2006 12/31/2005 12/31/2004 12/31/2003 12/31/2002 12/31/2001 12/31/2000…