National City Corporation

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• National City Corporation
• April 2005

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About National City

• 139 billion in assets
• Among the top 10 U.S. banks by assets (American
  Banker)
• Headquarters Cleveland, Ohio
• Member Banks Illinois, Indiana, Kentucky,
  Michigan, Missouri, Ohio and Pennsylvania
• More than 1,200 branches, 1,900 ATMs and more
  than 35,000 employees
• International Banking
• National City Canada in Toronto
• As of December 31, 2004

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National City Bank Locations
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Total Assets Comparison
Source SNL Datasource
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Top 10 Banks of 1990

• 70 percent are gone!
• Citigroup
• Chase
• BankAmerica
• JP Morgan
• Security Pacific
• Chemical
• NCNB (Bank of America)
• Manufacturers Hanover
• First Interstate
• Bankers Trust

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Number of Banks Merged or Acquired Since 1990

• Top 10 7 (70)
• Top 20 12 (60)
• Top 50 35 (70)
• Top 100 69 (69)

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A Consolidating Industry

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Consolidation Themes
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Historical Average Asset Trends
As of December 31, 2004
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Average Earnings Per Share (Diluted)
As of December 31, 2004
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Average Deposits
As of December 31, 2004
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Average Portfolio Loans
Dollars in Millions
As of December 31, 2004
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Average Loan Portfolio MixDollars in Millions
As of December 31, 2004
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Corporate Loan Portfolio Mix
As of December 31, 2004
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Consumer Loan Portfolio Mix
As of December 31, 2004
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Lines of Business

• Consumer Small Business Financial Services
• National City Mortgage Company
• National Consumer Finance
• Wholesale Banking
• Asset Management

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Awards and Rankings

• Among the top 10 U.S. banks by assets (American
  Banker)
• 5th Mega Bank on Fortune magazines Most Admired
  Companies
• 206 on the Fortune 500
• Among top 10 residential originators and
  servicers (National Mortgage News)
• Top SBA lender in our banking market, and 1 in
  five of those states

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Awards and Rankings

• National City.com was rated as best online
  banking experience for customers in 2005 and tied
  for No. 1 best online banking experience for
  prospective customers in 2004
• National City is currently the only member of the
  SP 500 to hold the highest possible ISS rating
  for excellence in corporate governance
• 60th on Corporate Americas Best Benefits report
  (Money magazine)
• Information Services division named one of the
  top 100 Technology Employers in the United States
  (Computerworld)

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Stock Price Peer Comparison
Stock Price
37.55
Closing Stock Price as of December 31, 2004
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Historical EPS CAGR Comparison
2000 2004
National City Wells Fargo MT Bank NCC (2004
adjusted) Fifth Third US Bancorp BBT Wachovia Was
hington Mutual Regions SunTrust Key Comerica PNC
For National City, 2004 EPS is 4.31 as
reported. For NCC (2004 adjusted), 2004 EPS is
3.40 and excludes 0.74 for National Processing
sale, 0.10 for deferred tax benefit and 0.07
for Bond Administration sale. Source Bloomberg
- Diluted EPS from continuing operations
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Net Income Peer Comparison
Net Income
Dollars in Millions
2,780
As of December 31, 2004
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Dividends Peer Comparison
Dividends
1.34
As of December 31, 2004
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Loan Market Update
Capital Markets - Debt Capital Markets
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Syndicated Loan Market Overview

• Volume
• 1Q05 fell short of 4Q04 levels, however,
  increased 27 from 1Q04 volume.
• U.S. Investment Grade Issuance 110.3 billion,
  31 increase over 2004
• U.S. Leveraged Loan Issuance 107.2 billion,
  25 increase over 2004
• U.S. Institutional Loan Issuance 55.2 billion,
  31 increase over 2004
• Investment grade borrowers were busy during 2004
  refinancing short term loans with long term,
  typically five-year, facilities. Multi-year loans
  now comprise nearly 75 of outstanding high grade
  credit lines.
• Demand continued to outpace supply, as spreads
  remained relatively cheap in 2004 institutional
  BB-rated Term Loan Bs ended the year at a
  razor-thin LIB 185 bps.
• Second-lien loan issuance surged in 2004 as the
  U.S. credit environment improved dramatically and
  lenders began accept more risk due to confidence
  in an improving economy. This trend continued In
  1Q05 second-lien loan issuance increased 13 from
  1Q04 levels and average spreads on second-lien
  issuances fell to 605 bps.
• Leverage Multiples
• Lenders continued to remain aggressive in 1Q05 as
  average senior leverage multiples increased to
  3.4x, while total leverage remained at 4.0x.

Source LPC Gold Sheets April 2005
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Syndicated Loan Market Overview

• Total syndicated loan volume surged to a record
  high 1.35 trillion in 2004, representing a 45.6
  increase over 2003 volume.
• Total syndicated loan volume increased 26.6 from
  1Q05 from 1Q04 (260.2 billion in 1Q05 and 205.5
  billion in 1Q04).
• Volume was driven by record levels in leveraged
  lending, investment grade lending and
  institutional lending, which resulted from
• Greater levels of MA and LBO activity.
• Greater liquidity in the loan market, as
  evidenced by lower pricing, reduced fees, more
  relaxed covenants, and longer tenors.

Source LPC April 2005
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Investment Grade Loan Volume

• Investment Grade loan issuance has shown signs of
  improvement as 3Q04 volume is up over 35
  compared to 3Q03 volume.
• Relationship lenders are rediscovering liquidity
  and the robust return of both regional and
  foreign banks to non-leveraged, investment grade
  loans.
• The favorable environment has allowed
  non-leveraged issuers some versatility, which
  translates into better terms on their credit
  lines and reduced financing risk.
• Factors affecting the recent investment grade
  lending activity
• Pick-up in the MA market.
• Fewer investment grade defaults.

Investment Grade Loan Issuance (Bils.)
Source LPC Third Quarter 2004
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Investment Grade Loan Volume

• After declining for two years, I-grade loan
  issuance increased 46 to 612.0 billion during
  2004
• Approximately 450.0 billion was the result of
  opportunistic refinancing and the long-delayed
  multi-year loan refinancing multi-year loans now
  comprise 75 of the market.
• The remainder was a result of new money issued to
  investment grade borrowers.
• This trend has continued in 2005 as
  year-over-year quarterly volume increased 31.5.
• Factors affecting the recent investment grade
  lending activity
• Fewer investment grade defaults.
• Diversified alternative funding resources
  available, particularly the bond market.

Investment Grade Loan Issuance (Bils.)
Source LPC April 2005
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Leveraged Loan Market Overview

• Leveraged lending jumped 25 over 1Q04 levels to
  107.2 billion (nearly equaling issuance in the
  investment grade market).
• The market continued to exhibit significant
  appetite for institutional tranches as
  institutional volume was strong, totaling 55.2
  billion for 1Q05, more than 30 above 1Q04.
• Net new money institutional issuance was over
  28.0 billion for 1Q05.

Source LPC April 2005
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Leverage Multiples

• Although Leverage Loan Multiples have slowly
  declined in 2004, they continue to remain at or
  above 4.00x in 1Q05 the highest levels since the
  MA-driven boom of the late 90s.
• The acceptance of greater risk by the bank market
  is a result of improving credit quality and a
  desire to open books to new business.

Source Portfolio Management Data, April 2005
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7-year Average Spreads of Leveraged Loans
Average Quarterly BB/BB- Pro Rata Weighted
Average Institutional Spread of Leveraged Loans
by Bank Loan Rating
Source SP LCD Research April 2005
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LBOs Then and Now Average Ratios

• The following chart compares the financial ratios
  of eight 2004 LBOs to the same issuers executed
  in the market of 1997 and early 1998. The data
  illustrates distinct similarities between 1997
  and 2004, as the market is very similar to that
  of go-go mid-1990s.

Source Standard Poor's LCD November 2004
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LBOs Then and Now Average Spreads

• The chart below depicts pricing for the LBOs
  referred to in the previous slide, the
  discrepancy is due to lower interest rates
  (equating to higher spreads) in 2004.

Source Standard Poor's LCD November 2004
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• Approve Minutes of the Prior Months Meeting 
• Regional Credit Policy Summary Report for Middle
  Market and Investment Real Estate
• Top Five Regional Nonperforming Credits
• Ohio CLS Charge-off and Recovery Report
• Past Due Summary and Loans 500M and Greater Past
  Due 30 Days or More
• Loans Greater than 90 Days Past Due and Still
  Accruing Interest
• Large Controlled Disbursement Accounts
• Large ACH Exposure Accounts
• KMV Report
• Loss Avoidance
• Top 50 Borrowers by Commitment
• OAEM or Worse Commitments of 10MM or Greater
• Trend Analysis
• Credit Sweep Exceptions
• Expired and Projected Credit Review Dates
• International Fees Written Off