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PART 2 OF 2 Washington Mutual Announces Fourth Quarter 2003 and Year-End Earnings; Board of Directors Increases Cash Dividend

January 20, 2004
FOR IMMEDIATE RELEASE

To view a printable version of the Q4 2003 financial release, click here.

To view a downloadable version of the Q4 2003 financial release, click here.

SEATTLE--(BUSINESS WIRE)--Jan. 20, 2004--


WM-1

                        Washington Mutual, Inc.
                   Consolidated Statements of Income
             (dollars in millions, except per share data)
                              (unaudited)



                              Quarter Ended            Year Ended
----------------------------------------------------------------------
                      Dec. 31, Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
                        2003     2003       2002      2003      2002
----------------------------------------------------------------------
Interest Income
  Loans held for
   sale              $    439  $    684  $    591  $  2,483  $  1,917
  Loans held in
   portfolio            1,969     1,848     2,076     7,686     8,675
  Available-for-sale
   securities             353       401       546     1,738     2,951
  Other interest and
   dividend income         38        65        68       256       312
----------------------------------------------------------------------
      Total interest
       income           2,799     2,998     3,281    12,163    13,855
Interest Expense
  Deposits                491       538       672     2,165     2,661
  Borrowings              565       551       728     2,369     3,065
----------------------------------------------------------------------
      Total interest
       expense          1,056     1,089     1,400     4,534     5,726
----------------------------------------------------------------------
         Net interest
          income        1,743     1,909     1,881     7,629     8,129
  Provision (reversal
   of reserve) for loan
   and lease losses      (202)       76        67        42       404
----------------------------------------------------------------------
      Net interest
       income after
       provision for
       loan and
       lease losses     1,945     1,833     1,814     7,587     7,725
Noninterest Income
  Home loan mortgage
   banking income
   (expense):
   Loan servicing
    fees                  524       542       628     2,273     2,237
   Amortization of
    mortgage
    servicing rights     (604)     (665)     (920)   (3,269)   (2,616)
   Mortgage servicing
    rights recovery
    (impairment)          615       368      (308)      712    (3,219)
   Revaluation gain
    (loss) from
    derivatives          (306)     (172)      (19)      338     2,517
   Net settlement
    income from
    certain interest-
    rate swaps            190       130       158       543       382
   Gain (loss) from
    mortgage loans         63      (204)      439     1,250     1,375
   Other home loan
    mortgage banking
    income (expense),
    net                   110       146       (29)      127        31
----------------------------------------------------------------------
      Total home
       loan mortgage
       banking
       income
       (expense)          592       145       (51)    1,974       707
  Depositor and other
   retail banking fees    472       471       449     1,818     1,634
  Securities fees and
   commissions            103       103        90       395       362
  Insurance income         49        45        39       188       155
  Portfolio loan
   related income          96       116       123       439       349
  Gain (loss) from
   other available-for-
   sale securities        (13)      557       574       676       768
  Gain (loss) on
   extinguishment of
   securities sold
   under agreements
   to repurchase            -         7       (11)     (129)      282
  Other income            166       120        38       489       212
----------------------------------------------------------------------
      Total noninterest
       income           1,465     1,564     1,251     5,850     4,469
Noninterest Expense
  Compensation and
   benefits               877       837       734     3,304     2,813
  Occupancy and
   equipment              569       352       290     1,592     1,136
  Telecommunications
   and outsourced
   information services   125       150       111       554       507
  Depositor and other
   retail banking
   losses                  49        50        51       201       204
  Amortization of other
   intangible assets       15        15        16        61        67
  Advertising and
   promotion               88        51        55       278       234
  Professional fees        78        69        45       267       201
  Other expense           300       286       301     1,151     1,026
----------------------------------------------------------------------
      Total noninterest
       expense          2,101     1,810     1,603     7,408     6,188
----------------------------------------------------------------------
   Income from
    continuing
    operations
    before income
    taxes               1,309     1,587     1,462     6,029     6,006
   Income taxes           488       588       551     2,236     2,217
Income from continuing
 operations, net of
 taxes                    821       999       911     3,793     3,789
Discontinued Operations
   Income from
    discontinued
    operations             34        38        47       137       113
   Income taxes            13        14        17        50        41
Income from discontinued
 operations, net of
 taxes                     21        24        30        87        72
----------------------------------------------------------------------
Net Income           $    842  $  1,023  $    941  $  3,880  $  3,861
======================================================================
Net Income Attributable
 to Common Stock     $    842  $  1,023  $    941  $  3,880  $  3,856
======================================================================

Basic earnings per
 common share:
   Income from
    continuing
    operations       $   0.93  $   1.11  $   0.99  $   4.20  $   4.01
   Income from
    discontinued
    operations, net      0.02      0.03      0.03      0.09      0.08
                     --------   --------  --------  --------  --------
    Net income           0.95      1.14      1.02      4.29      4.09

Diluted earnings per
 common share:
   Income from
    continuing
    operations       $   0.91  $   1.09  $   0.97  $   4.12  $   3.94
   Income from
    discontinued
    operations, net      0.02      0.02      0.03      0.09      0.08
                     --------   --------  --------  --------  --------
   Net income            0.93      1.11      1.00      4.21      4.02

Dividends declared per
 common share            0.41      0.40      0.28      1.40      1.06
Basic weighted average
 number of common shares
 outstanding (in
 thousands)           883,539   899,579   926,210   903,666   943,905
Diluted weighted average
 number of common shares
 outstanding (in
 thousands)           904,840   918,372   939,991   921,757   960,152



WM-2

                        Washington Mutual, Inc.
            Consolidated Statements of Financial Condition
             (dollars in millions, except per share data)
                              (unaudited)


                                          Dec. 31,  Sept. 30, Dec. 31,
                                            2003      2003      2002
----------------------------------------------------------------------
Assets
   Cash and cash equivalents             $  7,018  $  5,744  $  7,084
   Federal funds sold and securities
    purchased under resale agreements          19        12     2,015
   Available-for-sale securities, total
    amortized cost of $36,858, $36,792
    and $42,528:
        Mortgage-backed securities         10,695    14,352    28,375
        Investment securities              26,012    22,705    15,530
   Loans held for sale                     20,343    35,493    38,782
   Loans held in portfolio                175,644   160,556   143,869
   Allowance for loan and lease losses     (1,250)   (1,549)   (1,503)
----------------------------------------------------------------------
        Total loans held in portfolio,
         net of allowance for loan and
         lease losses                     174,394   159,007   142,366
   Investment in Federal Home Loan Banks    3,462     3,429     3,703
   Mortgage servicing rights                6,354     5,870     5,341
   Goodwill                                 6,196     6,196     6,213
   Assets of discontinued operations        4,184     4,138     3,864
   Other assets                            16,501    29,685    14,952
----------------------------------------------------------------------
         Total assets                    $275,178  $286,631  $268,225
======================================================================
Liabilities
   Deposits:
        Noninterest-bearing deposits     $ 29,968  $ 39,197  $ 37,515
        Interest-bearing deposits         123,213   124,944   118,001
----------------------------------------------------------------------
         Total deposits                   153,181   164,141   155,516
   Federal funds purchased and
    commercial paper                        2,011     3,113       507
   Securities sold under agreements to
    repurchase                             28,333    20,468    16,717
   Advances from Federal Home Loan Banks   48,330    43,743    51,265
   Other borrowings                        15,483    12,584    14,712
   Liabilities of discontinued
    operations                              3,578     3,554     3,330
   Other liabilities                        4,520    18,587     6,117
----------------------------------------------------------------------
         Total liabilities                255,436   266,190   248,164
Stockholders' equity                       19,742    20,441    20,061
----------------------------------------------------------------------
         Total liabilities and
          stockholders' equity           $275,178  $286,631  $268,225
======================================================================
Common shares outstanding at end of
 period (in thousands) (1)                880,986   913,854   944,047
Book value per common share (2)          $  22.56  $  22.77  $  21.66
Tangible book value per common share (2)    15.58     15.94     14.98
Full-time equivalent employees at end of
 period (3)                                60,021    59,975    52,459

(1) Includes 6,000,000 shares at December 31, 2003, 16,200,000 shares
    at September 30, 2003 and 18,000,000 shares at December 31, 2002,
    held in escrow.

(2) Excludes 6,000,000 shares at December 31, 2003, 16,200,000 shares
    at September 30, 2003 and 18,000,000 shares at December 31, 2002,
    held in escrow.

(3) Includes 2,380, 2,353 and 2,356 full-time equivalent employees
    reported as part of discontinued operations at December 31, 2003,
    September 30, 2003 and December 31, 2002.



WM-3

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                                       Year Ended
----------------------------------------------------------------------
                                                   Dec. 31,   Dec. 31,
                                                     2003       2002
----------------------------------------------------------------------
Stockholders' Equity Rollforward
Balance, beginning of period                       $20,061    $14,025
Net income                                           3,880      3,861
Other comprehensive (loss) income, net of tax         (699)       418
Cash dividends declared on common stock             (1,274)    (1,021)
Cash dividends declared on redeemable preferred
 stock                                                   -         (5)
Cash dividends returned(1)                              53          -
Common stock repurchased and retired                (2,699)    (1,303)
Common stock issued for acquisitions                     -      3,672
Fair value of Dime stock options                         -         90
Common stock issued to redeem preferred stock            -        102
Common stock issued                                    420        222
----------------------------------------------------------------------
Balance, end of period                             $19,742    $20,061
======================================================================

(1) Represents accumulated dividends on shares returned from escrow.



WM-4

                        Washington Mutual, Inc.
                    Selected Financial Information
             (dollars in millions, except per share data)
                              (unaudited)


                                        Quarter Ended
----------------------------------------------------------------------
                      Dec. 31, Sept. 30,  June 30,  Mar. 31,  Dec. 31,
                        2003      2003      2003      2003      2002
----------------------------------------------------------------------
PROFITABILITY
  Net interest
   income           $  1,743  $  1,909  $  1,986  $  1,993  $  1,881
  Net interest
   margin               2.90 %    3.07 %    3.22 %    3.28 %    3.16 %
  Noninterest
   income           $  1,465  $  1,564  $  1,526  $  1,295  $  1,251
  Noninterest
   expense             2,101     1,810     1,850     1,647     1,603
  Basic earnings per
   common share:
   Income from
    continuing
    operations      $   0.93  $   1.11  $   1.09  $   1.06  $   0.99
   Income from
    discontinued
    operations, net     0.02      0.03      0.03      0.02      0.03
   Net income           0.95      1.14      1.12      1.08      1.02
  Diluted earnings
   per common share:
   Income from
    continuing
    operations      $   0.91  $   1.09  $   1.07  $   1.05  $   0.97
   Income from
    discontinued
    operations, net     0.02      0.02      0.02      0.02      0.03
   Net income           0.93      1.11      1.09      1.07      1.00
  Dividends
   declared per
   common share     $   0.41  $   0.40  $   0.30  $   0.29  $   0.28
  Return on average
   assets (1)           1.21 %    1.41 %    1.43 %    1.42 %    1.38 %
  Return on average
   common equity (1)   16.80     19.82     19.26     19.41     17.87
  Efficiency
   ratio (2)(3)        65.51     52.13     52.66     50.09     51.18
ASSET QUALITY
  Nonaccrual
   loans (4)        $  1,626  $  1,813  $  1,893  $  2,062  $  2,155
  Foreclosed assets      311       293       307       325       328
  Total
   nonperforming
   assets              1,937     2,106     2,200     2,387     2,483
  Nonperforming
   assets/total assets  0.70 %    0.73 %    0.78 %    0.86 %    0.93 %
  Restructured
   loans            $    111  $    118  $     89  $     99  $     98
  Total
   nonperforming
   assets and
   restructured
   loans               2,048     2,224     2,289     2,486     2,581
  Allowance for
   loan and lease
   losses              1,250     1,549     1,530     1,530     1,503
  Allowance as a
   percentage of
   total loans held
   in portfolio         0.71 %    0.96 %    1.02 %    1.04 %    1.04 %
  Provision
   (reversal of
   reserve) for
   loan and lease
   losses           $   (202) $     76  $     81  $     88  $     67
  Net charge-offs         97        74        81        58        65
CAPITAL ADEQUACY
  Stockholders'
   equity/total
   assets               7.17 %    7.13 %    7.41 %    7.44 %    7.48 %
  Tangible common
   equity (5)/total
   tangible
   assets (5)           5.26      5.26      5.26      5.26      5.26
  Estimated total
   risk-based
   capital/risk-
   weighted
   assets (6)          11.12     11.54     11.68     11.68     11.53
SUPPLEMENTAL DATA
  Average balance
   sheet:
   Total loans
    held for sale   $ 29,362  $ 51,272  $ 51,519  $ 47,301  $ 42,329
   Total loans
    held in
    portfolio        167,033   152,696   147,708   144,690   145,479
   Total
    interest-
    earning
    assets           241,718   249,892   246,851   242,791   238,970
   Total assets      277,469   290,215   284,037   280,774   273,669
   Total
    interest-
    bearing
    deposits         125,318   124,488   120,144   119,056   116,136
   Total
    noninterest-
    bearing
    deposits          33,368    49,457    43,536    38,851    32,375
   Total
    stockholders'
    equity            20,056    20,657    21,112    20,557    21,061
  Period-end
    balance sheet:
   Loans held for
    sale              20,343    35,493    44,870    49,219    38,782
   Loans held in
    portfolio, net of
    allowance for
    loan and lease
    losses           174,394   159,007   148,520   145,442   142,366
   Interest-
    earning
    assets (2)       236,175   236,547   245,628   244,012   232,274
   Total assets      275,178   286,631   283,120   277,041   268,225
   Interest-
    bearing
    deposits         123,213   124,944   119,952   119,394   118,001
   Noninterest-
    bearing
    deposits          29,968    39,197    46,505    40,478    37,515
   Total
    stockholders'
    equity            19,742    20,441    20,978    20,608    20,061


(1) Includes income from continuing and discontinued operations.

(2) Based on continuing operations.

(3) The efficiency ratio is defined as noninterest expense, divided by
    total revenue (net interest income and noninterest income).

(4) Excludes nonaccrual loans held for sale.

(5) Excludes unrealized net gain/loss on available-for-sale securities
    and derivatives, goodwill and intangible assets, but includes MSR.

(6) Estimate of what the total risk-based capital ratio would be if
    Washington Mutual, Inc. was a bank holding company that complies
    with Federal Reserve Board capital requirements.



WM-5

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


                             Quarter Ended
----------------------------------------------------------------------
                               Dec. 31, 2003         Sept. 30, 2003
                                        Interest              Interest
                                         Income/               Income/
                          Balance  Rate  Expense  Balance Rate Expense
----------------------------------------------------------------------
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets:
  Federal funds sold and securities
   purchased under resale
   agreements             $   414  2.26%  $   2  $  1,350  2.16% $   7
   Available-for-sale
    securities (1):
      Mortgage-backed
       securities          12,584  4.14     130    21,174  4.51    239
      Investment
       securities          27,386  3.24     223    17,652  3.66    162
   Loans held for sale (2) 29,362  5.98     439    51,272  5.34    684
   Loans held in
    portfolio(2):
    Loans secured by real
     estate:
     Home loans            94,713  4.41   1,045    84,456  4.56    963
     Purchased specialty
      mortgage finance     11,799  5.05     149    10,777  5.30    143
---------------------------------        ------  --------       ------
         Total home loans 106,512  4.48   1,194    95,233  4.64  1,106
     Home construction
      loans:
      Builder (3)           1,073  4.67      13     1,105  4.47     13
      Custom (4)            1,087  6.53      18       977  6.90     17
     Home equity loans
      and lines of credit  25,850  4.71     306    22,209  4.81    266
     Multi-family          20,177  5.07     256    19,920  5.16    258
     Other real estate      6,941  6.39     111     6,989  6.31    111
---------------------------------        ------  --------       ------
         Total loans
          secured by
          real estate     161,640  4.69   1,898   146,433  4.83  1,771
    Consumer                1,066  9.02      24     1,178  8.55     25
    Commercial business     4,327  4.22      47     5,085  4.02     52
---------------------------------        ------  --------       ------
         Total loans held
          in portfolio    167,033  4.71   1,969   152,696  4.83  1,848
   Other                    4,939  2.87      36     5,748  3.99     58
---------------------------------        ------  --------       ------
         Total interest-
          earning assets  241,718  4.62   2,799   249,892  4.79  2,998
Noninterest-earning assets:
   Mortgage servicing
    rights                  6,408                   6,250
   Goodwill                 6,196                   6,196
   Other (5)               23,147                  27,877
---------------------------------                --------
    Total assets         $277,469                $290,215
=================================                ========
Liabilities
Interest-bearing liabilities:
   Deposits:
    Interest-bearing
     checking            $ 67,896  1.44     247  $ 64,057  1.68    272
    Savings accounts and
     money market deposit
     accounts              27,667  0.81      56    28,674  0.88     63
    Time deposit accounts  29,755  2.50     188    31,757  2.53    203
---------------------------------        ------  --------       ------
      Total interest-
       bearing deposits   125,318  1.55     491   124,488  1.72    538
   Federal funds purchased
    and commercial paper    3,872  1.08      11     4,057  1.12     12
   Securities sold under
    agreements to
    repurchase             27,394  2.17     152    21,399  2.19    120
   Advances from Federal
    Home Loan Banks        44,837  2.47     283    45,334  2.59    300
   Other                   13,675  3.51     119    12,203  3.94    119
---------------------------------        ------  --------       ------
      Total interest-
       bearing
       liabilities        215,096  1.94   1,056   207,481  2.07  1,089
                                         ------                 ------
Noninterest-bearing sources:
   Noninterest-bearing
    deposits               33,368                  49,457
   Other liabilities (6)    8,949                  12,620
   Stockholders' equity    20,056                  20,657
---------------------------------                --------
    Total liabilities
     and stockholders'
     equity              $277,469                $290,215
=================================                ========
   Net interest spread and net
    interest income                2.68  $1,743            2.72 $1,909
                                         ======                 ======
   Impact of noninterest-
    bearing sources                0.22                    0.35
   Net interest margin             2.90                    3.07


                                                 Quarter Ended
                                         -----------------------------
                                                 Dec. 31, 2002
                                                           Interest
                                                            Income/
                                             Balance  Rate  Expense
                                         -----------------------------
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets:
  Federal funds sold and securities
   purchased under resale
   agreements                                $  2,536  1.43%   $   9
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities                              26,010  5.01      325
      Investment
       securities                              18,214  4.83      221
   Loans held for sale (2)                     42,329  5.58      591
   Loans held in
    portfolio(2):
    Loans secured by real
     estate:
     Home loans                                85,325  5.55    1,184
     Purchased specialty
      mortgage finance                          9,405  5.54      130
---------------------------                  --------        -------
         Total home loans                      94,730  5.55    1,314
     Home construction
      loans:
      Builder (3)                               1,109  5.68       16
      Custom (4)                                  914  8.34       19
     Home equity loans
      and lines of credit                      15,380  5.69      219
     Multi-family                              18,815  5.82      274
     Other real estate                          8,230  6.67      138
---------------------------                  --------        -------
         Total loans
          secured by
          real estate                         139,178  5.69    1,980
    Consumer                                    1,713  9.18       40
    Commercial business                         4,588  4.84       56
---------------------------                  --------        -------
         Total loans held
          in portfolio                        145,479  5.70    2,076
   Other                                        4,402  5.29       59
---------------------------                  --------        -------
         Total interest-
          earning assets                      238,970  5.48    3,281
Noninterest-earning assets:
   Mortgage servicing
    rights                                      5,855
   Goodwill                                     6,171
   Other (5)                                   22,673
---------------------------                  --------
    Total assets                             $273,669
===========================                  ========
Liabilities
Interest-bearing liabilities:
   Deposits:
    Interest-bearing
     checking                                $ 53,588  2.35      317
    Savings accounts and
     money market deposit
     accounts                                  28,738  1.30       94
    Time deposit accounts                      33,810  3.06      261
---------------------------                  --------        -------
      Total interest-
       bearing deposits                       116,136  2.30      672
   Federal funds purchased
    and commercial paper                        2,189  1.61        9
   Securities sold under
    agreements to
    repurchase                                 23,659  2.77      165
   Advances from Federal
    Home Loan Banks                            56,030  2.94      415
   Other                                       14,240  3.86      139
---------------------------                  --------        -------
      Total interest-
       bearing
       liabilities                            212,254  2.62    1,400
                                                             -------
Noninterest-bearing sources
   Noninterest-bearing
    deposits                                   32,375
   Other liabilities (6)                        7,979
   Stockholders' equity                        21,061
---------------------------                  --------
    Total liabilities
     and stockholders'
     equity                                  $273,669
===========================                  ========
   Net interest spread and
    interest income                                    2.86  $ 1,881
                                                             =======
   Impact of noninterest-
    bearing sources                                    0.30
   Net interest margin                                 3.16


(1) The average balance and yield are based on average amortized cost
    balances.

(2) Nonaccrual loans were included in the average loan amounts
    outstanding.

(3) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale.

(4) Represents construction loans made directly to the intended
    occupant of a single-family residence.

(5) Includes assets of discontinued operations.

(6) Includes liabilities of discontinued operations.



WM-6

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


                              Year Ended
----------------------------------------------------------------------
                          Dec. 31, 2003            Dec. 31, 2002
                                    Interest                 Interest
                                     Income/                 Income/
                     Balance  Rate   Expense  Balance  Rate  Expense
----------------------------------------------------------------------
Average Balances and Weighted Average Interest Rates
Assets
Interest-earning assets:
  Federal funds sold and
   securities purchased
   under resale
   agreements       $  2,570  1.45%     $37  $  2,352  1.70%  $   40
  Available-for-sale
   securities(1):
     Mortgage-backed
      securities      20,977  4.91    1,030    24,654  5.46    1,345
     Investment
      securities      18,742  3.77      708    32,387  4.96    1,606
  Loans held for
   sale (2)           44,832  5.54    2,483    30,954  6.19    1,917
  Loans held in
   portfolio(2):
   Loans secured by real
    estate:
    Home loans        86,443  4.77    4,124    86,039  5.90    5,077
    Purchased specialty
     mortgage finance 10,794  5.43      586     9,028  6.27      566
----------------------------       -------- ---------       --------
        Total home
         loans        97,237  4.84    4,710    95,067  5.94    5,643
    Home construction
     loans:
     Builder (3)       1,084  4.79       52     1,316  5.93       78
     Custom (4)          978  7.13       70       906  8.19       74
    Home equity loans
     and lines of
     credit           21,163  4.98    1,053    13,382  5.91      790
    Multi-family      19,409  5.30    1,029    17,973  6.01    1,081
    Other real estate  7,243  6.35      460     8,368  6.83      572
----------------------------       -------- ---------       --------
        Total loans
         secured by
         real estate 147,114  5.01    7,374   137,012  6.01    8,238
   Consumer            1,208  8.87      107     2,340  9.41      220
   Commercial business 4,771  4.31      205     4,223  5.14      217
----------------------------       -------- ---------       --------
        Total loans
         held in
         portfolio   153,093  5.02    7,686   143,575  6.04    8,675
  Other                5,109  4.27      219     4,513  6.04      272
----------------------------       -------- ---------       --------
        Total
         interest-earning
         assets      245,323  4.96   12,163   238,435  5.81   13,855
Noninterest-earning
 assets:
   Mortgage servicing
    rights             5,721                    6,650
   Goodwill            6,198                    5,996
   Other (5)          25,746                   20,339
----------------------------                ---------
     Total assets   $282,988                 $271,420
============================                =========
Liabilities
Interest-bearing liabilities:
  Deposits:
   Interest-bearing
    checking        $ 62,723  1.69    1,057   $40,338  2.55    1,028
   Savings accounts
    and money market
    deposit accounts  28,196  0.93      263    31,529  1.48      466
   Time deposit
    accounts          31,416  2.69      845    37,253  3.13    1,167
----------------------------       -------- ---------       --------
        Total
         interest-
         bearing
         deposits    122,335  1.77    2,165   109,120  2.44    2,661
   Federal funds
    purchased and
    commercial paper   3,158  1.18       37     2,976  1.90       57
   Securities sold
    under agreements
    to repurchase     22,318  2.44      545    34,830  2.31      804
   Advances from
    Federal Home Loan
    Banks             49,441  2.62    1,296    59,369  2.82    1,676
   Other              13,315  3.68      491    12,172  4.34      528
----------------------------       -------- ---------       --------
        Total
         interest-
         bearing
         liabilities 210,567  2.15    4,534   218,467  2.62    5,726
                                   --------                 --------
Noninterest-bearing sources:
   Noninterest-bearing
    deposits          41,250                   25,396
   Other
    liabilities (6)   10,724                    7,624
   Stockholders'
    equity            20,447                   19,933
----------------------------                ---------
     Total liabilities
      and stockholders'
      equity        $282,988                 $271,420
============================                =========
   Net interest spread and
    net interest income                2.81    $7,629  3.19   $8,129
                                            =========       ========
   Impact of noninterest-
    bearing sources                    0.30            0.22
   Net interest margin                 3.11            3.41


(1) The average balance and yield are based on average amortized cost
    balances.

(2) Nonaccrual loans were included in the average loan amounts
    outstanding.

(3) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale.

(4) Represents construction loans made directly to the intended
    occupant of a single-family residence.

(5) Includes assets of discontinued operations.

(6) Includes liabilities of discontinued operations.



WM-7

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


                             Quarter Ended             Year Ended
----------------------------------------------------------------------
                      Dec. 31, Sept. 30,  Dec. 31,  Dec. 31,  Dec. 31,
                       2003      2003      2002      2003      2002
----------------------------------------------------------------------
Loan Volume
 Home loans:
  Adjustable rate     $23,397  $ 28,225  $ 25,998  $ 99,899  $ 84,627
  Fixed rate           28,105    83,360    69,123   263,604   180,745
  Specialty mortgage
   finance (1)          6,031     5,460     4,689    20,678    14,077
----------------------------------------------------------------------
    Total home loan
     volume            57,533   117,045    99,810   384,181   279,449
 Home construction
  loans:
  Builder (2)             636       787       389     2,506     1,842
  Custom (3)              377       363       194     1,176       761
 Home equity loans and
  lines of credit       7,922     9,369     4,721    29,639    15,254
 Multi-family           1,647     2,598     1,864     8,065     5,839
 Other real estate        655       439       513     1,969     1,818
----------------------------------------------------------------------
    Total loans
     secured by real
     estate            68,770   130,601   107,491   427,536   304,963
 Consumer                  72       146       114       339       760
 Commercial business    1,061     1,191       883     4,370     3,696
----------------------------------------------------------------------
    Total loan volume $69,903  $131,938  $108,488  $432,245  $309,419
======================================================================
Loan Volume by Channel
 Originated           $47,964  $ 82,514  $ 64,702  $265,217  $199,127
 Purchased/
  Correspondent        21,939    49,424    43,786   167,028   110,292
----------------------------------------------------------------------
    Total loan volume
     by channel       $69,903  $131,938  $108,488  $432,245  $309,419
======================================================================
Refinancing Activity (4)
 Home loan
  refinancing         $31,919  $ 83,564  $ 71,203  $269,442  $183,788
 Home construction loans    6        16        11        47        50
 Home equity loans and
  lines of credit and
  consumer                848     2,030       904     4,775     2,814
 Multi-family and other
  real estate             690     1,164       903     3,453     2,155
----------------------------------------------------------------------
    Total refinancing $33,463  $ 86,774  $ 73,021  $277,717  $188,807
======================================================================
Home Loan Volume by Index:
 Short-term adjustable-
  rate loans (5):
  Treasury indices    $13,021  $  7,076  $  3,972  $ 30,147  $ 19,474
  COFI                    151       124       316       722     3,231
  Other                   628       336       244     1,404       789
----------------------------------------------------------------------
    Total short-term
     adjustable-rate
     loans             13,800     7,536     4,532    32,273    23,494
 Medium-term adjustable-
  rate loans (6)       13,667    24,138    24,896    81,404    72,597
 Fixed-rate loans      30,066    85,371    70,382   270,504   183,358
----------------------------------------------------------------------
    Total home loan
     volume           $57,533  $117,045  $ 99,810  $384,181  $279,449
======================================================================

Note: Pursuant to regulatory guidance issued in December 2003, buyouts
    of delinquent mortgages contained within Government National
    Mortgage Association (GNMA) loan servicing pools must be
    classified as loans on the balance sheet. Accordingly, total home
    loan volume includes GNMA pool buy-out volume of $1.30 billion,
    $1.67 billion and $1.64 billion for the quarters ended December
    31, 2003, September 30, 2003 and December 31, 2002 and $6.94
    billion and $4.71 billion for the years ended December 31, 2003
    and December 31, 2002.

(1) Represents purchased subprime loan portfolios and mortgages
    originated by Long Beach Mortgage.

(2) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale.

(3) Represents construction loans made directly to the intended
    occupant of a single-family residence.

(4) Includes loan refinancing entered into by both new and pre-
    existing loan customers.

(5) Short term is defined as adjustable-rate loans that reprice within
    one year or less.

(6) Medium term is defined as adjustable-rate loans that reprice after
    one year.



WM-8

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                          Change from
                         Sept. 30, 2003   Dec. 31, Sept. 30,  Dec. 31,
                       to Dec. 31, 2003     2003      2003      2002
----------------------------------------------------------------------
Loans by Property Type and Mortgage-Backed Securities ("MBS")
   Loans held in portfolio:
    Loans secured by real
     estate:
     Home loans                $  9,800  $100,043  $ 90,243  $ 82,842
     Purchased specialty
      mortgage finance            1,607    12,973    11,366    10,128
----------------------------------------------------------------------
        Total home loans         11,407   113,016   101,609    92,970
     Home construction
      loans:
      Builder (1)                    (9)    1,052     1,061     1,017
      Custom (2)                    136     1,168     1,032       932
     Home equity loans and
      lines of credit             3,587    27,647    24,060    16,168
     Multi-family                   133    20,324    20,191    18,000
     Other real estate             (283)    6,649     6,932     7,986
----------------------------------------------------------------------
        Total loans secured by
         real estate             14,971   169,856   154,885   137,073
     Consumer                       (93)    1,028     1,121     1,663
     Commercial business            210     4,760     4,550     5,133
----------------------------------------------------------------------
        Total loans held in
         portfolio               15,088   175,644   160,556   143,869
   Less: allowance for loan
    and lease losses                299    (1,250)   (1,549)   (1,503)
   Loans securitized and
    retained as MBS              (3,393)    9,229    12,622    25,054
----------------------------------------------------------------------
        Total net loans
         held in portfolio and
         loans securitized
         and retained as MBS     11,994   183,623   171,629   167,420
   Loans held for sale(3)       (15,150)   20,343    35,493    38,782
----------------------------------------------------------------------
        Total net loans
         and loans securitized
         and retained as MBS     (3,156)  203,966   207,122   206,202
   Purchased MBS                   (264)    1,466     1,730     3,321
----------------------------------------------------------------------
        Total net loans and
         MBS                   $ (3,420) $205,432  $208,852  $209,523
======================================================================

(1) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single- family
    residences for sale.

(2) Represents construction loans made directly to the intended
    occupant of a single- family residence.

(3) Fair value of loans held for sale was $20.34 billion, $35.53
    billion and $38.84 billion as of December 31, 2003, September 30,
    2003 and December 31, 2002.



WM-9

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


                    Change               Weighted            Weighted
                     from                 Average            Average
                 Sept. 30, 2003  Dec. 31, Coupon   Sept. 30,  Coupon
               to Dec. 31, 2003    2003    Rate      2003      Rate
----------------------------------------------------------------------
Loans Secured by Real
 Estate and MBS
   Selected loans
    held in
    portfolio(1):
    Short-term
     adjustable-rate
     loans(2):
      COFI           $   (942) $ 10,766    4.93% $  11,708      5.05%
      Treasury indices 11,547    51,494    3.66     39,947      3.99
      Other             2,624    26,867    4.81     24,243      4.96
----------------------------------------------------------------------
         Total short-
          term
          adjustable-
          rate loans   13,229    89,127    4.16     75,898      4.46
    Medium-term
     adjustable-rate
     loans (3)          3,593    53,576    5.56     49,983      5.65
    Fixed-rate loans   (1,695)   18,284    6.91     19,979      7.16
----------------------------------------------------------------------
         Total loans
          held in
          portfolio
          secured by
          real estate
          (4)          15,127   160,987    4.94    145,860      5.24
   Loans held for
    sale (5)          (15,177)   20,211    6.51     35,388      5.90
----------------------------------------------------------------------
         Total loans
          secured by
          real estate     (50)  181,198    5.12    181,248      5.37
   MBS (6):
    Short-term
     adjustable-rate
     MBS (2):
      COFI             (1,562)    5,270    3.87      6,832      3.95
      Treasury indices (1,664)    3,401    2.94      5,065      3.14
      Other              (403)        9    3.15        412      4.62
----------------------------------------------------------------------
         Total short-
          term
          adjustable-
          rate MBS     (3,629)    8,680    3.50     12,309      3.64
    Fixed-rate MBS         46     1,496    6.35      1,450      6.98
----------------------------------------------------------------------
         Total MBS (7) (3,583)   10,176    3.92     13,759      3.99
----------------------------------------------------------------------
         Total loans
          secured by
          real estate
          and MBS    $ (3,633) $191,374    5.05  $ 195,007      5.27
======================================================================

                                     Weighted
                                      Average
                             Dec. 31, Coupon
                               2002    Rate
---------------------------------------------
Loans Secured by Real
 Estate and MBS
   Selected loans
    held in
    portfolio(1):
    Short-term
     adjustable-rate
     loans(2):
      COFI                  $ 15,315    5.59%
      Treasury indices        31,015    4.78
      Other                   17,843    5.80
---------------------------------------------
         Total short-
          term
          adjustable-
          rate loans          64,173    5.26
    Medium-term
     adjustable-rate
     loans (3)                43,715    6.55
    Fixed-rate loans          19,250    7.75
---------------------------------------------
         Total loans
          held in
          portfolio
          secured by
          real estate
          (4)                127,138    6.08
   Loans held for
    sale (5)                  38,686    6.26
---------------------------------------------
         Total loans
          secured by
          real estate        165,824    6.12
   MBS (6):
    Short-term
     adjustable-rate
     MBS (2):
      COFI                    11,459    4.46
      Treasury indices         8,984    3.78
      Other                    3,562    6.04
---------------------------------------------
         Total short-
          term
          adjustable-
          rate MBS            24,005    4.44
    Fixed-rate MBS             3,707    6.87
---------------------------------------------
         Total MBS (7)        27,712    4.77
---------------------------------------------
         Total loans
          secured by
          real estate
          and MBS           $193,536    5.93
=============================================

(1) Includes total home loans, home equity loans and lines of credit
    and multi-family loans.

(2) Short term is defined as adjustable-rate loans and MBS that
    reprice within one year or less.

(3) Medium term is defined as adjustable-rate loans that reprice after
    one year.

(4) At December 31, 2003, September 30, 2003 and December 31, 2002
    adjustable-rate loans with lifetime caps totaled $138.58 billion,
    $123.96 billion and $105.60 billion with a lifetime weighted
    average cap rate of 12.21%, 12.16% and 12.67%.

(5) Excludes student loans.

(6) Excludes principal-only strips and interest-only strips.

(7) At December 31, 2003, September 30, 2003 and December 31, 2002
    adjustable-rate MBS with lifetime caps totaled $8.12 billion,
    $11.82 billion and $23.84 billion with a lifetime weighted average
    cap rate of 11.32%, 11.27% and 11.34%.


                                      Sept. 30, 2003     Dec. 31, 2002
                                    to Dec. 31, 2003  to Dec. 31, 2003
----------------------------------------------------------------------
Rollforward of Loans Held for Sale
    Balance, beginning of period            $ 35,493         $ 38,782
        Loans originated and
         purchased                            36,552          317,417
        Loans sold and other                 (51,702)        (335,856)
----------------------------------------------------------------------
    Balance, end of period                   $20,343          $20,343
======================================================================

Rollforward of Loans Held in
 Portfolio
    Balance, beginning of period            $160,556         $143,869
        Loans originated and
         purchased                            33,351          114,828
        Loan payments and other              (18,263)         (83,053)
----------------------------------------------------------------------
    Balance, end of period                  $175,644         $175,644
======================================================================



WM-10

                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                                  Sept. 30,  Dec. 31,
                                                    2003       2002
                                                     to         to
                                                  Dec. 31,   Dec. 31,
                                                    2003       2003
----------------------------------------------------------------------
Rollforward of Mortgage Servicing Rights ("MSR")(1)
  Balance, beginning of period                    $  5,870  $   5,341
    Home loans:
      Additions                                        701      4,203
      Amortization                                    (604)    (3,269)
      Recovery                                         615        712
      Sales of MSR                                    (231)      (638)
    Net change in commercial real estate MSR             3          5
----------------------------------------------------------------------
  Balance, end of period(2)                       $  6,354  $   6,354
======================================================================
Rollforward of Valuation Allowance for MSR
 Impairment
  Balance, beginning of period                    $  3,075  $   4,521
    Recovery                                          (615)      (712)
    Other than temporary impairment                      -     (1,115)
    Sales of MSR                                       (25)      (259)
----------------------------------------------------------------------
  Balance, end of period                          $  2,435  $   2,435
======================================================================
Rollforward of Loans Serviced for Others
  Balance, beginning of period                    $577,822  $ 604,504
    Home loans:
      Additions                                     51,480    342,871
      Sales of servicing                              (195)    (3,155)
      Loan payments and other                      (47,062)  (362,319)
    Net change in commercial real estate loans
     serviced for others                               624        768
----------------------------------------------------------------------
  Balance, end of period                          $582,669  $ 582,669
======================================================================

                                                            Dec. 31,
                                                              2003
                                                            Balance
----------------------------------------------------------------------
Total Servicing Portfolio
   Loans serviced for others                               $ 582,669
   Servicing on retained MBS without MSR                       3,455
   Servicing on owned loans                                  182,604
   Subservicing portfolio                                      1,852
----------------------------------------------------------------------
  Total servicing portfolio                                $ 770,580
======================================================================

                                                     Dec. 31, 2003
----------------------------------------------------------------------
                                                   Unpaid    Weighted
                                                  Principal  Average
                                                   Balance   Servicing
                                                               Fee
----------------------------------------------------------------------
Loans Serviced for Others by Loan Type                      (in basis
                                                             points)
   Government                                     $ 66,773         50
   Agency                                          387,233         29
   Private                                         115,302         36
   Specialty home loans                             13,361         50
----------------------------------------------------------------------
  Total loans serviced for others(3)              $582,669         34
======================================================================

(1) Net of valuation allowance.

(2) At December 31, 2003, aggregate mortgage servicing rights fair
    value was $6.39 billion.

(3) Weighted average coupon rate was 6.07% at December 31, 2003.



WM-11

                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                         Quarter Ended
----------------------------------------------------------------------
                         Dec. 31, Sept. 30, June 30, Mar. 31, Dec. 31,
                           2003     2003     2003     2003     2002
----------------------------------------------------------------------
Home Loan Mortgage Banking
 Income (Expense)
   Loan servicing fees    $  524  $    542  $   593  $   613  $   628
   Loan subservicing fees      1         1        7        5       14
   Amortization of mortgage
    servicing rights        (604)     (665)  (1,032)    (969)    (920)
   Mortgage servicing
    rights recovery
    (impairment)             615       368     (309)      37     (308)
   Other, net                (76)     (221)    (168)    (137)    (134)
----------------------------------------------------------------------
      Net home loan
       servicing income
       (expense)             460        25     (909)    (451)    (720)
   Revaluation gain (loss)
    from derivatives:
      Mortgage servicing
       rights risk
       management           (314)     (317)     745      412      109
      Loans held for
       sale risk
       management(1)           8       145     (147)    (195)    (128)
----------------------------------------------------------------------
         Total
          revaluation
          gain (loss)
          from derivatives  (306)     (172)     598      217      (19)
   Net settlement income
    from certain
    interest-rate swaps      190       130       84      140      158
   Gain (loss) from
    mortgage loans(1)         63      (204)     747      643      439
   Loan related income       124       108       91       75       76
   Gain from sale of
    originated mortgage-
    backed securities         61       258        -        1       15
----------------------------------------------------------------------
      Total home loan
       mortgage banking
       income (expense)      592       145      611      625      (51)
----------------------------------------------------------------------
   Impact of other mortgage
    servicing rights risk
    management instruments(2):
      Gain (loss) from
       certain
       available-for-
       sale securities       (11)      176      140        -      407
----------------------------------------------------------------------
         Total home loan
          mortgage banking
          income (expense),
          net of other
          mortgage servicing
          rights risk
          management
          instruments     $  581  $    321  $   751  $   625  $   356
======================================================================

                                                       Year Ended
----------------------------------------------------------------------
                                                     Dec. 31, Dec. 31,
                                                       2003     2002
----------------------------------------------------------------------
Home Loan Mortgage Banking Income
   Loan servicing fees                               $ 2,273  $ 2,237
   Loan subservicing fees                                 14      100
   Amortization of mortgage servicing rights          (3,269)  (2,616)
   Mortgage servicing rights recovery (impairment)       712   (3,219)
   Other, net                                           (606)    (371)
----------------------------------------------------------------------
      Net home loan servicing income (expense)          (876)  (3,869)
   Revaluation gain (loss) from derivatives:
      Mortgage servicing rights risk management          526    2,645
      Loans held for sale risk management(1)            (188)    (128)
----------------------------------------------------------------------
         Total revaluation gain (loss) from
          derivatives                                    338    2,517
   Net settlement income from certain interest-rate
    swaps                                                543      382
   Gain from mortgage loans(1)                         1,250    1,375
   Loan related income                                   399      268
   Gain from sale of originated mortgage-backed
    securities                                           320       34
----------------------------------------------------------------------
      Total home loan mortgage banking income          1,974      707
----------------------------------------------------------------------
   Impact of other mortgage servicing rights risk
    management instruments(2):
       Gain from certain available-for-sale
        securities                                       305      795
       Gain on extinguishment of securities sold
        under agreements to repurchase                     -      257
----------------------------------------------------------------------
         Total home loan mortgage banking income,
          net of other mortgage servicing rights
          risk management instruments                $ 2,279  $ 1,759
======================================================================

 (1) The Company's policy of recording the fair value of rate lock
     commitments on its Consolidated Statements of Financial
     Condition has the effect of recognizing gain (loss) from
     mortgage loans before the loans are sold. Rate lock commitment
     volume, adjusted for actual and anticipated fallout factors,
     totaled $29.13 billion for the quarter ended December 31,
     2003. Gain (loss) from mortgage loans net of revaluation gain
     (loss) from derivatives used for loans held for sale risk
     management was a gain of $71 million for the quarter ended
     December 31, 2003, compared with a net loss of $59 million for
     the quarter ended September 30, 2003 and a net gain of $600
     million for the quarter ended June 30, 2003.

 (2) Includes only instruments designated for mortgage servicing
     rights risk management and does not include the effects of
     instruments held for asset/liability risk management.



WM-12

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)

                                     Dec. 31,  Sept. 30,      Dec. 31,
                                       2003       2003          2002
----------------------------------------------------------------------
Deposits
   Deposits:
      Checking accounts:
         Noninterest bearing          $27,906   $35,649       $35,730
         Interest bearing              68,318    66,353        56,132
----------------------------------------------------------------------
            Total checking accounts    96,224   102,002        91,862
      Savings and money market
       deposit accounts                29,000    31,348        29,886
      Time deposit accounts (1)        27,957    30,791        33,768
----------------------------------------------------------------------
            Total deposits (2)       $153,181  $164,141      $155,516
======================================================================

(1) Weighted average remaining maturity of time deposits was 14 months
    at December 31, 2003, 15 months at September 30, 2003 and 15
    months at December 31, 2002.

(2) Includes custodial and escrow deposits of $14.99 billion at
    December 31, 2003, $24.92 billion at September 30, 2003 and $25.90
    billion at December 31, 2002.


                  Dec. 31,  Sept. 30,   June 30,   Mar. 31,   Dec. 31,
                    2003       2003       2003       2003       2002
----------------------------------------------------------------------
Retail Checking
 Accounts (1)
Accounts,
 beginning of
 period         7,882,946  7,637,914  7,461,320  7,258,555  7,091,568
  Net accounts
   opened
   during the
   quarter        183,386    245,032    176,594    202,765    166,987
----------------------------------------------------------------------
Accounts, end
 of period      8,066,332  7,882,946  7,637,914  7,461,320  7,258,555
======================================================================

(1) Retail checking accounts exclude commercial business accounts. The
    information provided refers to the number of accounts, not dollar
    amounts.


                        Dec. 31,  Sept. 30, June 30, Mar. 31, Dec. 31,
                          2003       2003     2003     2003     2002
----------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
 period                   1,677      1,602    1,556    1,526    1,462
    Net stores opened
     during the quarter      99         75       46       30       64
----------------------------------------------------------------------
Stores, end of period     1,776      1,677    1,602    1,556    1,526
======================================================================



WM-13

                        Washington Mutual, Inc.
                    Selected Financial Information
                         (dollars in millions)
                              (unaudited)


                                        Quarter Ended
----------------------------------------------------------------------
                     Dec. 31,  Sept. 30,  June 30,  Mar. 31,  Dec. 31,
                       2003      2003       2003      2003      2002
----------------------------------------------------------------------
Allowance for Loan and Lease Losses
  Balance, beginning of
   quarter            $1,549    $1,530     $1,530    $1,503   $1,566
  Allowance
   transferred to loans
   held for sale          -         -          -         (3)     (13)
  Allowance for certain
   loan commitments       -         17         -         -       (52)
  Provision (reversal of
   reserve) for loan and
   lease losses         (202)       76         81        88       67
----------------------------------------------------------------------
                       1,347     1,623      1,611     1,588    1,568
  Loans charged off:
   Loans secured by real
    estate:
    Home loans           (18)      (22)        (9)      (15)     (23)
    Purchased specialty
     mortgage finance    (11)       (9)        (9)      (10)      (7)
----------------------------------------------------------------------
       Total home loan
        charge-offs      (29)      (31)       (18)      (25)     (30)
    Home construction
     loans -- builder     (1)       (1)        -         -        -
    Home equity loans
     and lines of credit  (2)       (4)        (4)       (4)      (9)
    Multi-family          (1)       (4)        -         -        -
    Other real estate    (52)      (16)       (21)      (10)      (7)
----------------------------------------------------------------------
       Total loans
        secured by
        real estate      (85)      (56)       (43)      (39)     (46)
   Consumer              (14)      (20)       (18)      (17)     (16)
   Commercial business   (15)      (19)       (31)      (14)     (18)
----------------------------------------------------------------------
       Total loans
        charged off     (114)      (95)       (92)      (70)     (80)
  Recoveries of loans
   previously charged off:
   Loans secured by real
    estate:
    Home loans             1         7          2        -        -
    Purchased specialty
     mortgage finance      1         1          1         1       -
----------------------------------------------------------------------
       Total home loan
        recoveries         2         8          3         1       -
    Other real estate      5         6          2         4        5
----------------------------------------------------------------------
       Total loans
        secured by
        real estate        7        14          5         5        5
    Consumer               5         5          3         3        5
    Commercial business    5         2          3         4        5
----------------------------------------------------------------------
       Total recoveries
        of loans
        previously
        charged off       17        21         11        12       15
----------------------------------------------------------------------
    Net charge-offs      (97)      (74)       (81)      (58)     (65)
----------------------------------------------------------------------
  Balance, end of
   quarter            $1,250    $1,549     $1,530    $1,530   $1,503
======================================================================
  Net charge-offs
   (annualized) as a
   percentage of average
   loans held in
   portfolio            0.23 %    0.19 %     0.22 %    0.16 %   0.18 %
  Allowance as a percentage
   of total loans held
   in portfolio         0.71      0.96       1.02      1.04     1.04



WM-14

                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)


                               Dec.   Sept.    June    Mar.     Dec.
                                31,     30,     30,     31,      31,
                               2003    2003    2003    2003     2002
---------------------------------------------------------------------
Nonperforming Assets and
 Restructured Loans
  Nonaccrual loans(1):
  Nonaccrual loans secured by
   real estate:
      Home loans                $736    $760    $804    $954  $1,068
      Purchased specialty
       mortgage finance          597     553     483     479     438
---------------------------------------------------------------------
          Total home loan
           nonaccrual loans    1,333   1,313   1,287   1,433   1,506
      Home construction
       loans:
          Builder(2)              25      31      31      38      42
          Custom(3)               10       9       9       9       7
      Home equity loans and
       lines of credit            47      46      49      44      36
      Multi-family                19      39      54      49      50
      Other real estate          153     309     369     402     413
---------------------------------------------------------------------
          Total nonaccrual
           loans secured by
           real estate         1,587   1,747   1,799   1,975   2,054
    Consumer                       8      10      15      14      22
    Commercial business           31      56      79      73      79
---------------------------------------------------------------------
         Total nonaccrual
          loans held in
          portfolio            1,626   1,813   1,893   2,062   2,155
  Foreclosed assets              311     293     307     325     328
---------------------------------------------------------------------
         Total nonperforming
          assets              $1,937  $2,106  $2,200  $2,387  $2,483
         As a percentage of
          total assets          0.70%   0.73%   0.78%   0.86%   0.93%
  Restructured loans            $111    $118     $89     $99     $98
---------------------------------------------------------------------
          Total nonperforming
           assets and
           restructured loans $2,048  $2,224  $2,289  $2,486  $2,581
=====================================================================

(1) Excludes nonaccrual loans held for sale of $66 million at
    December 31, 2003. Prior periods also reflect the exclusion of
    nonaccrual loans held for sale of $67 million, $73 million,
    $72 million and $119 million at September 30, 2003, June 30,
    2003, March 31, 2003 and December 31, 2002. Loans held for
    sale are accounted for at lower of aggregate cost or market
    value, with valuation changes included as adjustments to gain
    from mortgage loans.

(2) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale.

(3) Represents construction loans made directly to the intended
    occupant of a single-family residence.



WM-15

                        Washington Mutual, Inc.
               Pro Forma Combining Statements of Income
             (dollars in millions, except per share data)
                              (unaudited)


Note:  The following schedule combines
income from continuing operations
with the discontinued operations of      Quarter Ended Dec. 31, 2003
Washington Mutual Finance in order to --------------------------------
present the pro forma effects of      Income From  Washington    Pro
total net income on an  individual     Continuing    Mutual     Forma
line level basis.                      Operations   Finance   Combined
----------------------------------------------------------------------

Interest Income
   Loans held for sale                   $  439       $   -   $  439
   Loans held in portfolio                1,969         152    2,121
   Available-for-sale securities            353           1      354
   Other interest and dividend income        38           -       38
----------------------------------------------------------------------
          Total interest income           2,799         153    2,952
Interest Expense
   Deposits                                 491           -      491
   Borrowings                               565          39      604
----------------------------------------------------------------------
          Total interest expense          1,056          39    1,095
----------------------------------------------------------------------
               Net interest income        1,743         114    1,857
   Provision (reversal of reserve) for
    loan and lease losses                  (202)         41     (161)
----------------------------------------------------------------------
          Net interest income after
           provision for loan and
           lease losses                   1,945          73    2,018
Noninterest Income
   Home loan mortgage banking income:
      Loan servicing fees                   524           -      524
      Amortization of mortgage servicing
       rights                              (604)          -     (604)
      Mortgage servicing rights recovery    615           -      615
      Revaluation gain (loss) from
       derivatives                         (306)          -     (306)
      Net settlement income from certain
       interest-rate swaps                  190           -      190
      Gain from mortgage loans               63           -       63
      Other home loan mortgage banking
       income, net                          110           -      110
----------------------------------------------------------------------
          Total home loan mortgage banking
           income                           592           -      592
   Depositor and other retail banking fees  472           -      472
   Securities fees and commissions          103           -      103
   Insurance income                          49           5       54
   Portfolio loan related income             96           -       96
   Gain (loss) from other available-
    for-sale securities                     (13)          -      (13)
   Gain (loss) on extinguishment of
    securities sold under
     agreements to repurchase                 -           -        -
   Other income                             166           1      167
----------------------------------------------------------------------
          Total noninterest income        1,465           6    1,471
Noninterest Expense
   Compensation and benefits                877          25      902
   Occupancy and equipment                  569           4      573
   Telecommunications and outsourced
    information services                    125           3      128
   Depositor and other retail banking
    losses                                   49           -       49
   Amortization of other intangible
    assets                                   15           -       15
   Advertising and promotion                 88           3       91
   Professional fees                         78           3       81
   Other expense                            300           7      307
----------------------------------------------------------------------
          Total noninterest expense       2,101          45    2,146
----------------------------------------------------------------------
       Income before income taxes         1,309          34    1,343
       Income taxes                         488          13      501
----------------------------------------------------------------------
Net Income                               $  821       $  21   $  842
======================================================================
Net Income Attributable to Common Stock  $  821       $  21   $  842
======================================================================

Basic earnings per common share:         $ 0.93       $0.02   $ 0.95

Diluted earnings per common share:         0.91        0.02     0.93


Note:  The following schedule combines
income from continuing operations
with the discontinued operations of       Year Ended Dec. 31, 2003
Washington Mutual Finance in order to --------------------------------
present the pro forma effects of      Income From  Washington    Pro
total net income on an individual     Continuing     Mutual     Forma
line level basis.                     Operations    Finance   Combined
----------------------------------------------------------------------

Interest Income
   Loans held for sale                  $ 2,483       $   -   $ 2,483
   Loans held in portfolio                7,686         587     8,273
   Available-for-sale securities          1,738           5     1,743
   Other interest and dividend income       256           -       256
----------------------------------------------------------------------
          Total interest income          12,163         592    12,755
Interest Expense
   Deposits                               2,165           -     2,165
   Borrowings                             2,369         159     2,528
----------------------------------------------------------------------
          Total interest expense          4,534         159     4,693
----------------------------------------------------------------------
               Net interest income        7,629         433     8,062
   Provision (reversal of reserve) for
    loan and lease losses                    42         153       195
----------------------------------------------------------------------
          Net interest income after
           provision for loan and
           lease losses                   7,587         280     7,867
Noninterest Income
   Home loan mortgage banking income:
      Loan servicing fees                 2,273           -     2,273
      Amortization of mortgage servicing
       rights                            (3,269)          -    (3,269)
      Mortgage servicing rights recovery    712           -       712
      Revaluation gain (loss) from
       derivatives                          338           -       338
      Net settlement income from
       certain interest-rate swaps          543           -       543
      Gain from mortgage loans            1,250           -     1,250
      Other home loan mortgage banking
       income, net                          127           -       127
----------------------------------------------------------------------
          Total home loan mortgage
           banking income                 1,974           -     1,974
   Depositor and other retail banking
    fees                                  1,818           -     1,818
   Securities fees and commissions          395           -       395
   Insurance income                         188          21       209
   Portfolio loan related income            439           -       439
   Gain (loss) from other available-
    for-sale securities                     676           -       676
   Gain (loss) on extinguishment of
    securities sold under agreements
    to repurchase                          (129)          -      (129)
   Other income                             489           3       492
----------------------------------------------------------------------
          Total noninterest income        5,850          24     5,874
Noninterest Expense
   Compensation and benefits              3,304          95     3,399
   Occupancy and equipment                1,592          14     1,606
   Telecommunications and outsourced
    information services                    554          14       568
   Depositor and other retail banking
    losses                                  201           -       201
   Amortization of other intangible assets   61           -        61
   Advertising and promotion                278          14       292
   Professional fees                        267          11       278
   Other expense                          1,151          19     1,170
----------------------------------------------------------------------
          Total noninterest expense       7,408         167     7,575
----------------------------------------------------------------------
       Income before income taxes         6,029         137     6,166
       Income taxes                       2,236          50     2,286
----------------------------------------------------------------------
Net Income                              $ 3,793       $  87   $ 3,880
======================================================================
Net Income Attributable to Common
 Stock                                  $ 3,793       $  87   $ 3,880
======================================================================

Basic earnings per common share:        $  4.20       $0.09   $  4.29

Diluted earnings per common share:         4.12        0.09      4.21



WM-16

                       Washington Mutual, Inc.
              Pro Forma Statement of Financial Condition
                          December 31, 2003
                        (dollars in millions)
                             (unaudited)


Note:  The following schedule presents
the pro forma effects of disaggregating
the discontinued operations of Washington
Mutual Finance into its individual
components on the Statement of                   Washington
Financial Condition.                      As       Mutual
                                       Reported   Finance   Pro Forma
---------------------------------------------------------------------
Assets
   Cash and cash equivalents             $7,018        $64    $7,082
   Federal funds sold and securities
    purchased under resale agreements        19          -        19
   Available-for-sale securities,
    total amortized cost of $36,858 as
    reported,
     $36,987 pro forma:
        Mortgage-backed securities       10,695          -    10,695
        Investment securities            26,012        130    26,142
   Loans held for sale                   20,343          -    20,343
   Loans held in portfolio              175,644      3,997   179,641
   Allowance for loan and lease losses   (1,250)      (150)   (1,400)
---------------------------------------------------------------------
            Total loans held in
             portfolio, net of
             allowance for loan and
             lease losses               174,394      3,847   178,241
   Investment in Federal Home Loan
    Banks                                 3,462          -     3,462
   Mortgage servicing rights              6,354          -     6,354
   Goodwill                               6,196         57     6,253
   Assets of discontinued operations      4,184     (4,184)        -
   Other assets                          16,501         86    16,587
---------------------------------------------------------------------
            Total assets               $275,178         $-  $275,178
=====================================================================
Liabilities
   Deposits:
        Noninterest-bearing deposits    $29,968         $-   $29,968
        Interest-bearing deposits       123,213          -   123,213
---------------------------------------------------------------------
            Total deposits              153,181          -   153,181
   Federal funds purchased and
    commercial paper                      2,011      1,067     3,078
   Securities sold under agreements to
    repurchase                           28,333          -    28,333
   Advances from Federal Home Loan
    Banks                                48,330          -    48,330
   Other borrowings                      15,483      2,431    17,914
   Liabilities of discontinued
    operations                            3,578     (3,578)        -
   Other liabilities                      4,520         80     4,600
---------------------------------------------------------------------
            Total liabilities           255,436          -   255,436
Stockholders' equity                     19,742          -    19,742
---------------------------------------------------------------------
            Total liabilities and
             stockholders' equity      $275,178         $-  $275,178
=====================================================================



WM-17

                       Washington Mutual, Inc.
                    Selected Financial Information
                        (dollars in millions)
                             (unaudited)

                                                        Quarter Ended
----------------------------------------------------------------------
                                                           Dec. 31,
                                                             2003
----------------------------------------------------------------------
Credit Overview - Key Statistics
Allowance for Loan and Lease Losses ("ALLL"):
 September 30, 2003 as originally reported, including
  Washington Mutual Finance                                $ 1,699
 Less:  ALLL associated with Washington Mutual
  Finance                                                     (150)
----------------------------------------------------------------------
 September 30, 2003 ALLL excluding Washington Mutual
  Finance                                                    1,549
 Less:  Excess franchise lending portfolio specific
  reserve (net of charge-offs)                                 (82)(1)
 Less:  December 31, 2003 ALLL reversal                       (120)(1)
 Less:  December 31, 2003 net charge-offs                      (97)
----------------------------------------------------------------------
      Balance, end of quarter                              $ 1,250
======================================================================

(1) Included in the December 31, 2003 reversal of reserve for loan
    and lease losses

                                                     Quarter Ended
----------------------------------------------------------------------
                                                  Dec. 31,   Sept. 30,
Key Ratios:                                         2003       2003
----------------------------------------------------------------------
 Nonaccrual loans as a percentage of total
  loans held in portfolio                            0.93%       1.13%
 Nonperforming assets as a percentage of total
  loans held in portfolio                            1.10        1.31
 Nonperforming assets as a percentage of total
  assets                                             0.70        0.73
 Allowance as a percentage of total loans held
  in portfolio                                       0.71        0.96
 Foreclosed assets                             $      311 $       293


CONTACT: Media:
Alan Gulick, 206-377-3637
alan.gulick@wamu.net
or
Investors:
JoAnn DeGrande, 206-461-3186
joann.degrande@wamu.net
or
Ruthanne King, 206-461-6421
ruthanne.king@wamu.net

SOURCE: Washington Mutual