full text:
Growth reflects strength in market-related businesses and traditional banking market expansion

  2nd QUARTER 2007 COMPARED WITH 2nd QUARTER 2006

  -- Double-digit growth in earnings. Results include the impact of
     acquisitions and divestitures.
  -- Record revenue driven by higher loans and deposits due to acquisitions
     and organic growth, and by strong fee and other income in both
     traditional banking and securities businesses.
  -- Average core deposits up 30 percent. Outstanding retail checking
     account growth throughout footprint, with solid results in expanded
     markets.
  -- Average loans up 53 percent, driven by higher consumer real estate
     loans related to the Golden West acquisition, and strong organic growth
     in commercial and international lending. Expanded auto lending and
     credit card franchises generating results ahead of expectations.
  -- Solid credit quality; increased provision largely reflects growth in
     auto, commercial, consumer real estate loans and credit card.
  -- Customer loyalty scores reach high of 53.7%; organic customer
     acquisition grew 14.1% annualized.


  Earnings Highlights
                                                         Three Months Ended
                                          June 30,    March 31,     June 30,
                                             2007         2007         2006
  (In millions, except per share
  data)                            Amount     EPS Amount   EPS Amount   EPS
  Earnings
  Net income (GAAP)                $2,341    1.22  2,302  1.20  1,885  1.17
  Net merger-related and
   restructuring expenses              20    0.01      6     -     15  0.01
  Earnings excluding merger-
   related and restructuring
   expenses                        $2,361    1.23  2,308  1.20  1,900  1.18
  Financial ratios
  Return on average common
   stockholders' equity             13.54 %        13.47        15.41
  Net interest margin (a)            2.92           3.01         3.18
  Fee and other income as % of
   total revenue (a)                48.70          45.41        49.37
  Overhead efficiency ratio (a)     55.85 %        55.70        58.71
  Capital adequacy (b)
  Tier 1 capital ratio                7.5 %          7.4          7.8
  Total capital ratio                11.4           11.4         11.4
  Leverage ratio                      6.2 %          6.1          6.6
  Asset quality (c)
  Allowance for loan losses as %
   of nonaccrual and restructured
   loans                              182 %          213          488
  Allowance for loan losses as %
   of loans, net                     0.79           0.80         1.07
  Allowance for credit losses as
    % of loans, net (d)              0.83           0.84         1.13
  Net charge-offs as % of average
   loans, net                        0.14           0.15         0.08
  Nonperforming assets as % of
   loans, net, foreclosed
   properties and loans held
   for sale                          0.47 %         0.40         0.25

  (a)  Tax-equivalent.
  (b)  The second quarter of 2007 is based on estimates.
  (c)  Asset quality ratios at June 30 and March 31, 2007, reflect the
       impact of Golden West.
  (d)  The allowance for credit losses is the sum of the allowance for loan
       losses and the reserve for unfunded lending commitments.

Wachovia Corp. (NYSE:WB) today reported net income of $2.34 billion, or $1.22 per share, in the second quarter of 2007 compared with $1.88 billion, or $1.17 per share, in the second quarter of 2006.
After-tax net merger-related expenses amounted to 1 cent per common share in the second quarters of both 2007 and 2006. Excluding these expenses, earnings were $2.36 billion, or $1.23 per share, in the second quarter of 2007 and $1.90 billion, or $1.18 per share, in the second quarter of 2006.
"Our second quarter performance reflects our continued focus on execution in both the traditional banking and markets-related businesses," said Ken Thompson, Wachovia chairman and chief executive officer. "All four of our major businesses delivered double-digit earnings growth, fueled by new markets, revenue growth initiatives and an expanded product set. Especially gratifying is our employees' continuing dedication to providing industry- leading customer service - which generated record loyalty and satisfaction scores this quarter. The integration of Golden West is proceeding as planned, and we're excited by the cross-sell potential of our expanded platform. Additionally, our focus on efficiency and risk management continues to provide flexibility for investment for future growth."
For more information: http://www.wachovia.com/

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