| Filed by Wachovia Corporation pursuant to Rule 425 under the Securities Act of 1933, as amended, and deemed filed pursuant to Rule 14a-12 under the Securities Exchange Act of 1934, as amended
Subject Company: A.G. Edwards, Inc.
Commission File No.: 1-8527
Date: June 18, 2007 |
This filing may contain certain forward-looking statements with respect to each of Wachovia Corporation (“Wachovia”) and A.G. Edwards, Inc. (“A.G. Edwards”) and the combined company following the proposed merger between Wachovia and A.G. Edwards (the “Merger”), as well as the goals, plans, objectives, intentions, expectations, financial condition, results of operations, future performance and business of Wachovia, including, without limitation, (i) statements relating to the benefits of the Merger, including future financial and operating results, cost savings, enhanced revenues and the accretion/dilution to reported earnings that may be realized from the Merger, (ii) statements relating to the benefits of the merger between Wachovia and Golden West Financial Corporation (“Golden West”) completed on October 1, 2006 (the “Golden West Merger”), including future financial and operating results, cost savings, enhanced revenues and the accretion to reported earnings that may be realized from the Golden West Merger, (iii) statements regarding certain of Wachovia’s and/or A.G. Edwards’ goals and expectations with respect to earnings, earnings per share, revenue, expenses and the growth rate in such items, as well as other measures of economic performance, including statements relating to estimates of Wachovia’s credit quality trends, and (iv) statements preceded by, followed by or that include the words “may”, “could”, “should”, “would”, “believe”, “anticipate”, “estimate”, “expect”, “intend”, “plan”, “projects”, “outlook” or similar expressions. These statements are based upon the current beliefs and expectations of Wachovia’s management and are subject to significant risks and uncertainties. Actual results may differ from those set forth in the forward-looking statements. These forward-looking statements involve certain risks and uncertainties that are subject to change based on various factors (many of which are beyond Wachovia’s control).
The following factors, among others, could cause Wachovia’s financial performance to differ materially from that expressed in such forward-looking statements: (1) the risk that the businesses of Wachovia and A.G. Edwards in connection with the Merger or the businesses of Wachovia and Golden West in connection with the Golden West Merger will not be integrated successfully or such integration may be more difficult, time-consuming or costly than expected; (2) the risk that expected revenue
synergies and cost savings from the Merger or the Golden West Merger may not be fully realized or realized within the expected time frame; (3) the risk that revenues following the Merger or the Golden West Merger may be lower than expected; (4) deposit attrition, operating costs, customer loss and business disruption following the Merger or the Golden West Merger, including, without limitation, difficulties in maintaining relationships with employees, may be greater than expected; (5) the inability to obtain governmental approvals of the Merger on the proposed terms and schedule; (6) the failure of A.G. Edwards’ shareholders to approve the Merger; (7) risk that the strength of the United States economy in general and the strength of the local economies in which Wachovia and/or A.G. Edwards conducts operations may be different than expected resulting in, among other things, a deterioration in credit quality or a reduced demand for credit, including the resultant effect on Wachovia’s loan portfolio and allowance for loan losses; (8) the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System; (9) potential or actual litigation; (10) inflation, interest rate, market and monetary fluctuations; and (11) adverse conditions in the stock market, the public debt market and other capital markets (including changes in interest rate conditions) and the impact of such conditions on Wachovia’s and A.G. Edwards’ brokerage and capital markets activities. Additional factors that could cause Wachovia’s and A.G. Edwards’ results to differ materially from those described in the forward-looking statements can be found in Wachovia’s and A.G. Edwards’ Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q and Current Reports on Form 8-K filed with the SEC. All subsequent written and oral forward-looking statements concerning Wachovia or the proposed Merger or other matters and attributable to Wachovia or A.G. Edwards or any person acting on their behalf are expressly qualified in their entirety by the cautionary statements above. Wachovia and A.G. Edwards do not undertake any obligation to update any forward-looking statement, whether written or oral, relating to the matters discussed in this filing.
The proposed Merger will be submitted to A.G. Edwards’ shareholders for their consideration. Wachovia will file a registration statement with the SEC, which will include a proxy statement/prospectus regarding the proposed Merger. A.G. Edwards’ shareholders are urged to read the registration statement and the proxy statement/prospectus when they become available, as well as any other relevant documents concerning the proposed Merger filed with the SEC (and any amendments or supplements to those documents), because they will contain important information. You will be able to obtain a free copy of the registration statement and the proxy statement/prospectus, as well as other filings containing information about Wachovia and A.G. Edwards, at the SEC’s website (http://www.sec.gov) and at the companies’ respective websites, www.wachovia.com and www.agedwards.com. Copies of the proxy statement/prospectus and the SEC filings that will be incorporated by reference in the proxy statement/prospectus can also be obtained, free of charge, by directing a request to Wachovia Corporation, Investor Relations, One Wachovia Center, 301 South College Street, Charlotte, NC 28288-0206, (704)-383-0798; or to A.G. Edwards, Inc., Investor Relations, One North Jefferson Avenue, St. Louis, MO 63103, (314) 955-3000.
Wachovia and A.G. Edwards, and their respective directors and executive officers, may be deemed to be participants in the solicitation of proxies from the
shareholders of A.G. Edwards in connection with the proposed Merger. Information about the directors and executive officers of Wachovia is set forth in the proxy statement for Wachovia’s 2007 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on March 9, 2007. Information about the directors and executive officers of A.G. Edwards is set forth in the proxy statement for A.G. Edwards’ 2007 annual meeting of shareholders, as filed with the SEC on a Schedule 14A on May 15, 2007. Additional information regarding the interests of those participants and other persons who may be deemed participants in the Merger may be obtained by reading the proxy statement/prospectus regarding the proposed Merger when it becomes available. You may obtain free copies of these documents as described in the preceding paragraph.
 Wachovia Corporation Fixed Income Investor Update June 2007 THE FOLLOWING PRESENTATION WAS POSTED ON WACHOVIA’S WEBSITE
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1 4990 – Fixed Income Investor Update, June 2007 Company ($bn) 1 Citigroup 260 2 Bank of America 220 3 JP Morgan 169 4 Wells Fargo 118 5 Wachovia 101 6 US Bancorp 59 7 Capital One 33 8 SunTrust 31 9 PNC 25 10 Regions Financial 24 Company ($bn) 1 Citigroup 2,021 2 Bank of America 1,502 3 JP Morgan 1,409 4 Wachovia 706 5 Wells Fargo 486 6 US Bancorp 221 7 SunTrust 186 8 Capital One 149 9 National City 139 10 Regions Financial 138 Wachovia in perspective First Union and Wachovia Corporation merged in 2001, adopting the legacy Wachovia name with headquarters in Charlotte, NC No. 4 U.S. bank based on assets No. 3 U.S. deposit market share No. 2 U.S. retail brokerage firm* Key Statistics – 2006 Net Income: $7.8 billion – Market Cap: $101 billion – Assets: $706 billion – Deposits: $408 billion – Employees: 110,000 Top Ten U.S. Banks Total Assets Note: Financial data as of 3/31/07 other than 2006 Net Income. Market data as of 6/12/07. *Pro Forma including proposed A.G. Edwards acquisition announced May 31, 2007. The proposed A.G. Edwards merger is subject to regulatory approval and A.G.
Edwards’ shareholder approval Top Ten U.S. Banks Market Cap |
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2 4990 – Fixed Income Investor Update, June 2007 5.8% deposit market share – # 3 in the U.S. – 3,400 branches and 5,100 ATMs in 21 states and D.C. 8.1% in-footprint market share – # 1 bank in the Southeast 1 – Top 5 bank in Western U.S. 2 High growth/high wealth markets – 8.8% deposit-weighted average population growth vs. 6.3% U.S. average 3 – $84K deposit-weighted average household income vs. $61K U.S. average 4 Source: SNL Financial. 1. Based on deposits and includes AL, FL, GA, MS, NC, SC, TN, VA. 2. Based on deposits and includes CA, NV, AZ, CO, NM, WA, OR, UT, ID, MT, WY and TX.
3. 5-year average population growth, county-weighted by deposits. 4. Household income, zip code weighted by deposits. The proposed A.G. Edwards merger is subject to regulatory approval and A.G.
Edwards’ shareholder approval Wachovia in perspective A great footprint drives sustainable growth WB Financial Center Locations WB Retail Brokerage Locations AG Edwards Retail Brokerage Locations WB Mortgage Locations WB Auto Finance Locations WB Wealth Management Locations |
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3 4990 – Fixed Income Investor Update, June 2007 Wachovia in perspective Diversified scale businesses 1Q07 Segment Earnings $2.3 billion* Key Business Segments General Bank 11.5 million households and business relationships 3,400 financial centers, 5,100 ATMs Wealth Management $76 billion client AUM (No. 5) 255 Insurance Brokers Corporate and Investment Bank Top 10 in U.S. structured products, loan syndications, high yield, high grade, preferreds and equities 70% of earnings is capital markets driven and 30% is traditional banking Capital Management Retail Brokerage: 10,700 registered reps, $773 billion broker client assets (No. 2 U.S.) $315 billion client AUM Mutual Funds: $110 billion AUM (No. 19 U.S.) *Segment earnings as of 3/31/07. Capital Management $304 Corporate & Investment Bank $379 General Bank $1,539 Wealth Management $65 67% 17% 3% 13% ($ in millions) |
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4 4990 – Fixed Income Investor Update, June 2007 16% 34% 8% 15% 14% 6% 16% 12% Capital Management 2006 vs. 2005 Growth Wealth Management Corporate and Investment Bank Revenue Earnings General Bank “Combined”* *General Bank’s 2005 and 2006 “Combined” results. (See Wachovia Form 8-K dated 1/23/2007 for information on
“Combined” results). Wachovia in perspective Strong earnings growth |
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5 4990 – Fixed Income Investor Update, June 2007 Wachovia in perspective Strategies for sustainable growth Leveraging the open-architecture investment platform Insurance sales and referrals Wealth Management Service delivery and sales management Leveraging the Golden West footprint – Sale of deposit and loan products – Small Business – Commercial Banking Distribution focus – De novo branch expansion Retail credit expansion – Auto loan – Credit card – Mortgage Banking Businesses - Strategies for Growth General Bank |
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6 4990 – Fixed Income Investor Update, June 2007 Wachovia in perspective Strategies for sustainable growth Focus on corporate clients and products Leveraging product strengths to gain market share Market expansion with select products in Europe and Asia Corporate & Investment Bank Retail Brokerage A.G. Edwards proposed acquisition and integration Improving broker productivity Driving managed account growth through client needs assessments Asset Management Improve fund performance Selective acquisitions International product and distribution expansion Capital Management Markets-Related Businesses - Strategies for Growth Cross-Enterprise Sales Management |
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7 4990 – Fixed Income Investor Update, June 2007 Wachovia in perspective A.G. Edwards proposed acquisition Strategically Compelling Rare opportunity to create the second largest retail brokerage firm in the U.S. Expanded distribution improves ability to capitalize on U.S. baby boomer retirement opportunity and drive increased sales of bank products and new investment products developed by investment banking Financially Attractive IRR of 24% Accretive to cash and operating EPS in 2008 $2.0 billion in excess capital available at close Low Risk Transaction Similar customer and advisor-focused models Both firms have strong regional firm histories with strong emphasis on client experience Entrepreneurial cultures and advisory loyalty are the foundations of success Integration expertise demonstrated by successful Wachovia Securities/Prudential
Securities joint venture *For understanding analysis and assumptions, please see Investor Presentation materials filed with the SEC under rule 425 dated May 31, 2007 The proposed A.G. Edwards merger is subject to regulatory approval and A.G.
Edwards’ shareholder approval |
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8 4990 – Fixed Income Investor Update, June 2007 Merrill Lynch (GPC) * $11.9 $1,503 15,930 Wachovia / A.G. Edwards 8.4 (#2) 1,147 (#3) 14,784 (#2) Citigroup (Smith Barney) 8.4 1,277 13,009 Morgan Stanley (GWM)** 5.6 690 7,993 Wachovia Securities 5.3 773 8,166 UBS (Wealth Management US) 4.9 773 7,974 A.G. Edwards 3.1 374 6,618 Raymond James 1.8 198 4,650 ($ in billions) LTM = last twelve months, data as of 3/31/07. *Merrill’s client assets exclude $145B in non-US assets. Merrill’s net
revenue represents Global Private Client (GPC) revenue only and excludes
Investment Management revenue (i.e. Blackrock JV and other interests). **Quarter ended 2/28/07. Excludes investment banking revenue. A.G. Edwards proposed acquisition creates 2 nd largest U.S. retail brokerage firm Net Series 7 Revenue Client Registered Major Players (LTM) Assets Reps |
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9 4990 – Fixed Income Investor Update, June 2007 Conservative Balance Sheet Liquid/Low-risk Earning Asset Mix Cash & Equivalents Other Earning Assets Loans Securities 3% 18% 70% 5% Financials as of 3/31/07. Trading Assets 4% Solid Liability Funding 53% 12% 6% 10% 5% Core Deposits Short Term Debt Equity Long Term Debt (Unsecured) Other Deposits Other Liabs. 6% 8% Long Term Debt (Secured) |
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10 4990 – Fixed Income Investor Update, June 2007 0% 20% 40% 60% 80% 100% WB WFC BAC JPM C Loans Securities Interest Bearing Bank Balances 0% 20% 40% 60% 80% 100% WB WFC BAC JPM C Core Deposits Long-Term Debt Equity Balance Sheet Peer comparison Average balances; company reports as of 3/31/07. Earning Asset Composition Liabilities and Equity Composition Period end balances; Wachovia as of 3/31/07 while peers as of 12/31/06.
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11 4990 – Fixed Income Investor Update, June 2007 Deposit growth Superior customer service and loyalty Core deposits* ($ billions) 2002 2003 2004 2005 4Q06 1Q07 $235 $256 $308 $339 $362 *For comparative and illustrative purposes. Average core deposits include additions of ($ billions): legacy SouthTrust in 2002: $23.9; 2003: $25.6; 2004:
$23.0; legacy Golden West in 2002: $40.9; 2003: $46.7; 2004: $52.9; 2005: $60.1.
Wachovia 80 +21.2% (#1) All Others 78 +8.3% Bank of America 72 +14.3% JPM/Bank One 72 +2.9% Wells Fargo 72 +7.5% 2006 American Customer Satisfaction Index WB led survey for the 6 th year in a row Most improved since #1 ranking in 2001 Score 2006 vs. 2000 $369 |
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12 4990 – Fixed Income Investor Update, June 2007 63.6% 59.1% 60.6% 60.0% 58.0% 54.6% 54.2% 2001 2002 2003 2004 2005 2006** 1Q07 2007 Goal *Overhead efficiency ratio excludes merger-related and restructuring charges, changes
in accounting principle and intangible amortization. **2006 OER is on a
“Combined” basis. (See Wachovia Form 8-K dated 1/23/07).
2007 Goal is not a projection; results may differ from expectations for a number of
reasons. Overhead efficiency* improvement allows investing for sustainable growth 51.5 – 53.5% |
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13 4990 – Fixed Income Investor Update, June 2007 1,067 1,092 1,171 1,175 1,900 1,902 2,308 2,330 1,774 1,744 1,501 1,299 1,299 799 1,652 1,698 1,716 908 944 983 987 1,318 0.72 0.79 1.18 1.19 1.21 1.20 1.12 0.99 0.98 0.98 0.58 0.68 1.11 1.09 1.07 1.03 1.00 0.88 0.88 0.81 0.71 0.66 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 1Q04 2Q04 3Q04 4Q04 1Q05 2Q05 3Q05 4Q05 1Q06 2Q06 3Q06 4Q06 1Q07 Earnings* EPS* Consistent, growing operating earnings EPS CAGR Earnings CAGR Since 4Q01 15% 22% $ millions, except per share data *Represents net income available to common shareholders excluding after-tax
merger-related and restructuring expenses; compound growth figures exclude
merger-related and restructuring expenses of $10 million ($0.00) in 1Q07 and $63 million ($0.04) in 4Q01. Wachovia Corp. |
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14 4990 – Fixed Income Investor Update, June 2007 Student Other Consumer Real Estate Secured Period-end balance sheet as of 3/31/2007. 39% 14% 9% Consumer Mortgage Auto, Other Secured 23% 4% 3% Commercial Foreign 2% 6% Commercial Financial & Agricultural Commercial Leasing Commercial Real Estate Loan portfolio High quality, low loss content Total Loan Portfolio 90% Secured/Guaranteed $255 billion consumer loan portfolio 96% secured (additional 3% guaranteed) - 87% secured by Real Estate Real Estate portfolio - 71% average LTV - Average FICO 700 - 85% first lien secured 1Q07 net losses: 20 bps $167 billion commercial loan portfolio 77% secured No industry > 5% (3-digit SIC) $1.7 million average size 1Q07 net losses: 7 bps |
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15 4990 – Fixed Income Investor Update, June 2007 0.15% WB 0.15% JPM 0.77% BAC 0.80% WFC 0.89% C 1.24% Net Charge-off Ratio 0.99% Credit quality Risk reduction = best-in-class credit positioning 0.29% 0.70% 2001 1Q07 Wachovia Median: Top 20 U.S. Banks 0.54% 1.04% 0.41% NPA/Loans Ratio 1.05% 2001 1Q07 Source: Company reports. BAC 0.28% WB 0.41% JPM 0.54% WFC 0.82% C 0.86% 23.6x 4.96x 5.82x 9.9x 1Q07 2001 WB 23.6x JPM 9.2x BAC 6.7x WFC 5.5x C 5.3x PTPP Earnings*/ Charge-offs *Pre-tax, pre-provision earnings. |
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16 4990 – Fixed Income Investor Update, June 2007 -0.20% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% '90 '92 '94 '96 '98 '00 '02 '04 '06 Golden West Top 35 U.S. Bank Average Top U.S. Thrifts Avg - ex GDW World Savings mortgage portfolio Proven, low risk mortgage origination model Conservative underwriting – Diligent and methodical documentation standards – In-house appraisers – Underwritten to fully indexed rate – Regular customer outreach and counseling Low Balance Sheet risk – Loans originated at low LTVs and kept on Balance Sheet Product features – Payment rates closer to market – Average 10-year reset period > Reduces risk of payment shock in rising rate environment Net Charge-Offs / Avg. Loans GDW 17 year Average Charge-offs = 5 bps Peak Year 18 bps CA Real Estate Crisis 11 bps 0
bps Source: SNL Financial. Golden West charge-offs for 2006 through 12/31/2006 |
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17 4990 – Fixed Income Investor Update, June 2007 5.0% 4.7% 4.7% 4.0% 7.2% WFC JPM WB BAC C *Excludes servicing and the impact of FAS 115/133/158. Source: Company reports as of 3/31/07. Strong capital position Tangible Common Equity as % of Tangible Assets* 7.8% 6.2% 6.2% 6.1% 4.7% WFC BAC JPM WB C Leverage Ratio Source: Company reports as of 3/31/07. |
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18 4990 – Fixed Income Investor Update, June 2007 $12 $16 $20 $24 $28 $32 $36 $40 4Q01 2Q02 4Q02 2Q03 4Q03 2Q04 4Q04 2Q05 4Q05 2Q06 4Q06 Economic Tangible Tier 1 1Q07 Strong capital positioning for low risk business model Tangible common equity vs. economic capital ($ in billions) -$1.9B $1.9B $4.1B $8.0B $7.4B $8.0B $6.9B |
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19 4990 – Fixed Income Investor Update, June 2007 $0 $3 $6 $9 $12 2-3 4-5 7 10-12 15-20 25-30 Wachovia Bank, N.A. Wachovia Corporation 2006 issuances Term debt issuance summary $16 Net Issuance 14 Less: maturities 78% / 22% 29% / 71% 6.6 $30 Total 70% / 30% 51% / 49% 8.9 13 Wachovia Corporation 84% / 16% 12% / 81% 5.0 Yrs $17 Wachovia Bank, N.A. Senior / Sub. Fixed / Floating WAM Amount Summary: Debt Issuance by Tenor ($ billions) 23% 9% 68% Euro USD Sterling Debt Issuance by Currency Sterling € 500 million 12 yr Wachovia Corp € 2.8 billion 5 yr WBNA € 1.5 billion 5 yr Wachovia Corp Euro Foreign Debt Issuance £700 million 29 yr Wachovia Corp £750 million 17 yr WBNA € 750 million 10 yr Wachovia Corp Amount Tenor Issuer |
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20 4990 – Fixed Income Investor Update, June 2007 5.0 5.7 5.4 5.7 3.8 3.7 2.6 3.2 3.3 2007 2008 2009 Wachovia Bank, N.A. Wachovia Corporation World Savings (CA & TX) 2007 funding and term debt maturity Outlook: Maintain sufficient holding company liquidity to satisfy debt obligations for 12 months Loan growth likely to drive increased bank issuance Continued expansion into foreign currencies and markets Continued focus on ratings upgrades WBNA Wachovia Corp A$400 million 10 yr AUD $4.0 billion 2 yr US Dollar $2.5 billion 18 mth US Dollar $800 million Retail Hybrid US Dollar $875 million Retail Hybrid US Dollar $2.3 billion 10 yr US Dollar €1.0 billion 7 yr Euro $1.5 billion 5 yr US Dollar A$1.1 billion 5 yr AUD $1.0 billion 5* yr US Dollar $1.5 billion 30 US Dollar Amount Tenor Issuer 2007 YTD Activity Year to date through 6/4/2007. Total US dollar-equivalent funds raised of $17.0 billion. *Investor-driven reopening of Oct 2011s. Term Debt Maturities ($ in billions) |
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21 4990 – Fixed Income Investor Update, June 2007 Wachovia corporate debt ratings Stable 3/02/07 Aa3 Aa1 A1 Aa3 Moody’s AA- AA Senior Wachovia Bank, N.A. A+ AA- Sub 3/21/05 2/14/07 Ratings Date Current Outlook Wachovia Corporation Stable Stable A+ A+ Sub AA- Fitch AA- S&P Senior Selected comments: Moody’s (2/07): “In the past six years, Wachovia has improved its execution in
the general bank. As a result of its well-run, large direct banking franchise, Wachovia has a large source of predictable earnings and a broad funding base
centered on its large holdings of core deposits.” S&P (12/06):
“Wachovia’s capital position is in line with the risk profile of its core business. The company is very
focused on economic capital analysis in its measurement of capital needs. The lower credit risk profile of its core lending
businesses and Wachovia’s diversified revenue mix that generates consistently good growth of core earnings supports the current capital
position.” Fitch (5/06): “…WB has approached operational risk management, including risks
associated with mergers, quite cautiously and has established a good track record in recent years.”
Aa2 Aa3 A1 A2 A3 Baa1 AA AA- A+ A A- BBB+ Moody’s S & P Fitch 12/04 12/03 12/02 12/01 12/06 12/05 Aa2 Aa3 A1 A2 A3 Baa1 AA AA- A+ A A- BBB+ Moody’s S & P Fitch 12/04 12/03 12/02 12/01 12/06 12/05 Aa2 Aa3 A1 A2 A3 Baa1 AA AA- A+ A A- BBB+ Moody’s S & P Fitch 12/04 12/03 12/02 12/01 12/06 12/05 Aa2 Aa3 A1 A2 A3 Baa1 AA AA- A+ A A- BBB+ Moody’s S & P Fitch 12/04 12/03 12/02 12/01 12/06 12/05 |
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22 4990 – Fixed Income Investor Update, June 2007 Wachovia’s value proposition Resilient, diversified scale businesses Footprint in higher growth markets Sales and service leadership Aggressive, effective credit risk management Disciplined capital use Low-risk balance sheet Going forward: – Superior execution – Seamless merger integration – Strong retail sales culture – Generate significant excess capital |
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23 4990 – Fixed Income Investor Update, June 2007 Appendix |
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24 4990 – Fixed Income Investor Update, June 2007 Wachovia’s geographic reach Our investor clients are located in more than 50 countries: United States Canada Australia Bermuda United Kingdom Germany France Denmark Ireland Austria Netherlands Israel Belgium Spain Switzerland Bahrain Norway Cyprus United Arab Emirates Italy Tunisia Jersey, C.I. Luxembourg Sweden Turkey Jordan Finland China Hong Kong Singapore Korea Philippines Taiwan Puerto Rico Chile Venezuela Peru Brazil Dominican Republic Argentina Mexico Panama Aruba Colombia Costa Rica Jamaica Bahamas Honduras Cayman Islands El Salvador Proposed A.G. Edwards merger is subject to regulatory approval and A.G.
Edwards’ shareholder approval |
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25 4990 – Fixed Income Investor Update, June 2007 $2.7 $2.8 $3.2 2004 2005 2006 $6.0 $6.2 $6.7 2004 2005 2006 Retail and Small Business Revenue* per Financial Center ($ in millions) *Excludes Westcorp, Credit Card and Golden West. 2004 is Combined for Wachovia and SouthTrust. (See Wachovia Form 8-K dated 1/19/05). General Bank Commercial Banking Revenue* per Relationship Manager ($ in millions) *Commercial Banking business. Excludes Business Banking, Real Estate Financial Services, Community Banking and Dealer Financial Services. 2004 is Combined for Wachovia and SouthTrust. See Wachovia Form 8-K dated 1/19/05. |
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26 4990 – Fixed Income Investor Update, June 2007 $200 $248 $267 $156 2003 2004 2005 2006 Revenue per RM ($ in millions) Wealth Management $2.5 $3.7 $3.7 $3.2 2003 2004 2005 2006 Earnings ($ in millions) |
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27 4990 – Fixed Income Investor Update, June 2007 1.5% 4.7% 1.5% 1.3% 0.2% 2.9% 5.5% 2.6% 2.3% 1.0% 3.8% 5.7% 3.2% 1.7% 4.5% Wachovia Market Share (based on fees generated) Equity Loan Syndications Advisory Source: Dealogic. Market share based on fees generated. 2001 2003
2006 TOTAL Corporate & Investment Bank Debt Capital Markets |
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28 4990 – Fixed Income Investor Update, June 2007 39% 50% 58% 61% 70% 2003 2004 2005 2006 Goal 11% 16% 20-25% 13% 18% 2003 2004 2005 2006 Goal Managed Account Assets as a % of Total Client Assets Recurring Revenues as a % of Total Revenues Managed Account Assets ($ in billions) $68 $82 $106 $134 Recurring Revenues ($ in billions) $1.3 $2.1 $2.5 $3.0 Capital Management |
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29 4990 – Fixed Income Investor Update, June 2007 Cross-enterprise sales management CMG/CIB Cross-Business Partnership ($ millions) CMG Deposit and Loan Production ($ millions) GBG Commercial Banking Insurance Services Sold Referrals IRA Rollover Assets Captured* ($ millions) $388 $449 2005 2006 16% 594 803 2005 2006 26% $2,389 $3,203 2005 2006 34% *General Bank and In-bank channels gross rollover inflows. 2005 2006 2005 2006 Deposits Loans $1,343 $2,068 $2,773 $3,872 |
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