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Washington Mutual Announces Second Quarter 2005 Earnings; Net Income and EPS Increased 73 Percent; Board of Directors Increases Cash Dividend

July 20, 2005
FOR IMMEDIATE RELEASE

To view a printable version of the Q2 2005 financial release.

To view a downloadable version of the Q2 2005 financial tables.


SEATTLE, Jul 20, 2005 (BUSINESS WIRE) -- Washington Mutual, Inc. (NYSE:WM) today announced second quarter 2005 net income of $844 million, or $0.95 per diluted share, up 73 percent when compared with net income of $489 million, or $0.55 per diluted share in the second quarter of 2004.

Washington Mutual's Board of Directors declared a cash dividend of 48 cents per share on the company's common stock, up from 47 cents per share in the previous quarter. Dividends on the common stock are payable on August 15, 2005 to shareholders of record as of July 29, 2005.

"We recorded solid performance across all of our businesses this quarter as we continue to make excellent progress toward achieving our long-term financial goals," said Kerry Killinger, chairman and chief executive officer. "Our Retail Bank's earnings were strong, Home Loans had another good quarter, the Commercial Group's lending volume was robust and the company continued to demonstrate excellent expense control."

Killinger added: "A year ago we acknowledged our challenges in integrating our mortgage banking acquisitions effectively into our operations and enhancing the risk management of our mortgage servicing asset. I said we would face those challenges head-on and build a mortgage team that is one of the industry's best. I am proud to say that we have done exactly that and after four consecutive quarters of solid performance, our Home Loans Group is now positioned for growth."

Washington Mutual has already taken several steps to ensure a timely and effective integration of the previously announced acquisition of the credit card company Providian Financial. The company has filed its application and related notices with the Office of Thrift Supervision, and Providian and Washington Mutual have filed the initial proxy and registration statement with the Securities and Exchange Commission. Providian has set August 31, 2005, as the date for its special meeting of shareholders to vote on the adoption of the merger agreement. The transaction is expected to close early in the fourth quarter of this year.

"Both companies are committed to completing this transaction quickly and to take advantage of the revenue synergies immediately after the transaction closes," Killinger said.

Key Results:

-- Total assets of $323.53 billion at the end of the second quarter of 2005 increased $3.84 billion from $319.70 billion at the end of the first quarter of 2005 and $44.99 billion from $278.54 billion at the end of the second quarter of 2004, reflecting continued strong asset generation capability;

-- The net interest margin declined modestly to 2.66 percent in the second quarter from 2.73 percent in the first quarter of 2005 and 2.86 percent in the second quarter of 2004, despite a 225 basis point increase in the Fed Funds rate over the twelve-month period;

-- Net interest income increased to $1.93 billion in the second quarter of 2005 from $1.89 billion in the first quarter of 2005 and $1.79 billion in the second quarter of 2004, as the growth in average interest-earning assets more than offset net interest margin compression;

-- The provision for loan and lease losses was $31 million in the second quarter of 2005. While up when compared with $16 million in the first quarter of 2005, it was down from $60 million in the second quarter of 2004 and reflects a continuing favorable credit environment;

-- Depositor and other retail banking fees of $540 million in the second quarter of 2005 were up $50 million, or 10 percent from the first quarter of 2005 and $33 million, or 7 percent from the second quarter of 2004. The improvement reflects not only the expected seasonal recovery from the first quarter of 2005 but also growth in net new checking accounts over the period;

-- Revenue from sales and servicing of home mortgage loans, including the results of all MSR risk management instruments, was $403 million in the second quarter of 2005 compared with $624 million in the first quarter of 2005 and zero in the second quarter of 2004. The year-over-year improvement reflects the company's success in reducing the earnings volatility associated with the MSR asset;

-- Noninterest expense of $1.83 billion in the second quarter was down slightly from both the first quarter of 2005 and the second quarter of 2004, reflecting continued success on productivity improvements and expense management.

SECOND QUARTER FINANCIAL SUMMARY

Net Interest Income

The net interest margin in the second quarter was 2.66 percent, down 7 basis points from 2.73 percent in the first quarter of 2005 and 20 basis points from 2.86 percent in the second quarter of 2004. The decrease in the net interest margin from prior quarters reflects the increase in the cost of interest-bearing liabilities, which was driven by the continuing rise in short-term interest rates since June of 2004. This downward pressure was partially offset by disciplined deposit pricing, the partial restructuring of available-for-sale securities in the first quarter of 2005, which increased the yield of this portfolio, and the effect from the termination of higher cost debt in the third quarter of 2004.

Net interest income was $1.93 billion in the second quarter, up from $1.89 billion in the first quarter of 2005 and up 7 percent from $1.79 billion in the second quarter of 2004. The increase from the first quarter of 2005 reflects a 5 percent increase in average interest-earning assets, while the increase from the second quarter of 2004 reflects a 16 percent increase in average interest-earning assets, both of which more than offset the modest net interest margin compression.

Noninterest Income

Noninterest income was $1.27 billion in the second quarter of 2005, compared with $1.41 billion in the first quarter of 2005 and $894 million in the second quarter of 2004.

Revenue from sales and servicing of home mortgage loans, including the results of all MSR risk management instruments, was $403 million in the second quarter of 2005, down from $624 million in the first quarter of 2005, but up from zero in the second quarter of 2004. The results for the second quarter of 2005 reflect the company's successful efforts to reduce the earnings volatility associated with the MSR asset. The decline from the first quarter of 2005 reflects a higher total MSR risk management and amortization cost of $295 million in the quarter, compared with a cost of $149 million in the first quarter of 2005. Further contributing to the decline was a lower gain from home mortgage loans and originated mortgage-backed securities, net of hedging and risk management instruments of $171 million in the second quarter of 2005, compared with $261 million in the first quarter of 2005.

Noninterest Expense

Noninterest expense of $1.83 billion was down $11 million from the first quarter of 2005 and down $20 million from $1.85 billion in the second quarter 2004. Expenses were down from both prior periods due to continued productivity improvements in all segments of our business and our focus on expense management. The company's efficiency ratio was 57.24 percent in the second quarter of 2005, compared with 55.77 percent in the first quarter of 2005 and 68.77 percent in the second quarter of 2004.

Lending

Total loan volume was $67.62 billion in the second quarter of 2005, compared with $59.52 billion in the first quarter of 2005 and $79.52 billion in the second quarter of 2004. This quarter's solid performance reflected the continuing strong loan demand and relatively low interest rates.

Total home loan volume in the second quarter of 2005 was $53.40 billion, compared with $47.75 billion in the first quarter of 2005 and $63.15 billion in the second quarter of 2004. Adjustable-rate loans made up 62 percent of total home loan volume in the second quarter of 2005, compared with 63 percent in the first quarter of 2005 and 55 percent in the second quarter of 2004. Home loan volume in the second quarter of 2005 included record volume from the company's Long Beach Mortgage Company subsidiary.

The company continued to see strong home equity loan and line of credit and multi-family lending volumes in the second quarter of 2005. Although down from a record of $11.57 billion in the second quarter of 2004, home equity loan and line of credit volume of $10.89 billion in the quarter was up $2 billion, or 23 percent from $8.89 billion in the first quarter of 2005. Multi-family lending volume was $2.46 billion in the second quarter of 2005, up 16 percent from the first quarter of 2005 and 5 percent from the second quarter of 2004.

Credit Quality

At June 30, 2005, nonperforming assets as a percentage of total assets were 0.53 percent, compared with 0.57 percent at March 31, 2005, and 0.60 percent at June 30, 2004. While net charge offs for the quarter were up slightly to $39 million versus $37 million in the first quarter of 2005 and $24 million in the second quarter of 2004, they remained well below expectations due largely to a stable economy and a continued strong housing market. The strong credit performance of the portfolio resulted in a provision of $31 million for the quarter. The allowance for loan and lease losses was $1.24 billion at June 30, 2005, down 3 percent from $1.28 billion at March 31, 2005.

Balance Sheet and Capital Management

Total assets increased $3.84 billion from the first quarter of 2005 to $323.53 billion at the end of the second quarter of 2005, reflecting strong loan volume offset by opportunistic secondary market sales. Loans held for sale of $51.12 billion, increased $9.93 billion from the first quarter of 2005 and $23.33 billion from the second quarter of 2004. At the end of the second quarter of 2005, nearly half of the company's loan portfolio was made up of assets other than prime single-family residential loans, reflecting the company's balance sheet diversification.

Total deposits of $184.32 billion as of June 30, 2005, were up slightly during the quarter and up 13 percent from second quarter 2004. The year-over-year increase primarily reflects the growth in retail time deposits and wholesale accounts.

The company's ratio of tangible common equity to tangible assets was 5.13 percent at the end of the quarter. In addition, the capital ratios of the company's banking subsidiaries continued to exceed the federal regulatory requirements for classification as "well-capitalized" institutions, the highest regulatory standard.

SECOND QUARTER OPERATING SEGMENT RESULTS

Retail Banking and Financial Services Group Financial Performance

Net income for the company's Retail Banking and Financial Services segment was $579 million in the second quarter of 2005, up 7 percent from $539 million in the first quarter of 2005 and up 20 percent from $483 million in the second quarter of 2004. Net interest income continued to grow primarily due to strong average asset growth. Home equity loans and lines of credit totaled $48.45 billion at June 30, 2005, a 34 percent increase in the past twelve months. Noninterest income was up from both the first quarter of 2005 and the second quarter of 2004 due to growth in depositor and other retail banking fees, as well as securities fees and commissions.

Total retail deposits of $135.80 billion were up $1.21 billion from the first quarter of 2005 and were up $6.34 billion or 5 percent from the second quarter of 2004. Contributing to these increases was the addition of 504,000 net new retail deposit accounts in the second quarter of 2005, including 388,000 net new transaction accounts. The company opened 30 retail banking stores in the second quarter of 2005. The company's retail banking cross-sell ratio increased to 6.02 products and services, up from 5.79 at June 30, 2004. Over the past year, WM Advisors' assets under management grew by $3.24 billion, or 16 percent, to $23.35 billion at June 30, 2005.

Home Loans Group Financial Performance

Net income for the Home Loans segment, which excludes purchased specialty mortgage finance and Long Beach Mortgage Company, was $209 million in the second quarter of 2005, compared with $242 million in the first quarter of 2005 and a loss of $59 million in the second quarter of 2004.

The Home Loans segment loan volume in the second quarter of 2005 was $44.86 billion, up 17 percent from $38.50 billion in the first quarter of 2005, as the strong housing market and relatively low interest rates continued to drive volume. Although up from the first quarter, this quarter's lending volume was below the $56.22 billion of a year ago, reflecting a lower level of refinancing activity.

While noninterest expense of $574 million in the second quarter of 2005 was essentially flat with the first quarter of 2005, it was down $92 million, or 14 percent from $666 million in the second quarter of 2004, due to continued productivity and efficiency improvements.

Commercial Group Financial Performance

Net income for the Commercial Group segment, which includes Long Beach Mortgage Company, was $151 million in the second quarter of 2005, down from $200 million in the first quarter of 2005 and $184 million in the second quarter of 2004. The decrease from the first quarter of 2005 was due primarily to a $59 million pretax gain on sale of a real estate investment property and higher gain from sale of loans in the first quarter of 2005.

Loan volume was $11.06 billion in the second quarter of 2005, a 30 percent increase from $8.52 billion in the first quarter of 2005 and a 33 percent increase from $8.31 billion in the second quarter of 2004. The significant increase in loan volume in the second quarter of 2005 was driven by record loan volume in Long Beach Mortgage Company and continued strong volumes in the multi-family lending business.

Average loans in the Commercial Group were $47.23 billion in the second quarter of 2005, up from $41.78 billion in the first quarter of 2005 and up $8.74 billion, or 23 percent from the second quarter of 2004. Total average commercial deposits were $7.65 billion in the second quarter of 2005.

Company Updates

On June 6, 2005, the company announced a definitive agreement to acquire Providian Financial (NYSE:PVN) in a stock and cash transaction at an announced value of approximately $6.45 billion. The transaction brings together two of the nation's leading financial services companies focused on serving middle market consumers. Providian had approximately $18.10 billion in managed receivables at March 31, 2005, and serves close to 10 million customer accounts.

Earlier today, the company announced the election of recently retired CEO of Starbucks Orin C. Smith to its board of directors. Smith, 63, brings extensive retailing, branding, financial and operational expertise to the Board. During his five years as CEO, Starbucks grew from 2,498 stores and annual revenues of $1.7 billion to more than 8,500 locations and more than $5 billion in annual revenues today. Smith was named to the Board of Directors' Audit and Governance Committees.

On June 23, 2005, the company announced the election of former Media One CEO and Colorado equity investor Charles M. Lillis to its board of directors. Lillis, 63, is co-founder and managing director of LoneTree Capital, of Englewood, Colo., which invests primarily in the communications/information industry. Lillis was named to the Board of Directors' Human Resources and Finance Committees.

On June 30, 2005, the company announced that it hired David C. Schneider to be president of its Home Loans Group and to oversee all aspects of the company's Home Loans segment. Schneider will become a member of the company's Executive Committee.

About Washington Mutual

With a history dating back to 1889, Washington Mutual is a retailer of financial services that provides a diversified line of products and services to consumers and commercial clients. At June 30, 2005, Washington Mutual and its subsidiaries had assets of $323.53 billion. Washington Mutual currently operates more than 2,400 retail banking, mortgage lending, commercial banking and financial services offices throughout the nation. Washington Mutual's press releases are available at www.wamunewsroom.com.

Webcast information: A conference call to discuss the company's financial results will be held on Wednesday, July 20, 2005, at 5:00 p.m. EDT and will be hosted by Kerry Killinger, chairman and chief executive officer, Steve Rotella, president and chief operating officer, and Tom Casey, executive vice president and chief financial officer. The conference call is available by telephone or on the Internet. The dial-in number for the live conference call is 888-425-9158. Participants calling from outside the United States may dial 212-519-0800. The passcode "WaMu" is required to access the call. Via the Internet, the conference call is available on the Investor Relations portion of the company's web site at www.wamu.com/ir. A transcript of the prepared remarks will be on the company's web site for 30 days following the call. A recording of the conference call will be available after 7:30 p.m. EDT on Wednesday, July 20, 2005, through 2:59 a.m. EDT on Saturday, July 30, 2005. The recorded message will be available at 800-925-4582. Callers from outside the United States may dial 402-220-4182.

Important Legal Information

This communication contains information about the proposed merger transaction involving Washington Mutual and Providian Financial Corporation. In connection with the proposed transaction, Washington Mutual has filed a registration statement on Form S-4 with the SEC containing a preliminary proxy statement/prospectus for the shareholders of Providian, and Washington Mutual and Providian will each be filing other documents regarding the proposed transaction with the SEC as well. Before making any voting or investment decision, investors are urged to read the definitive proxy statement/prospectus regarding the proposed transaction and any other relevant documents carefully in their entirety when they become available because they will contain important information about the proposed transaction. The definitive proxy statement/prospectus will be mailed to Providian's shareholders. The registration statement containing the proxy statement/prospectus and other documents are available free of charge at the SEC's Internet site (http://www.sec.gov). The definitive proxy statement/prospectus (when it is available) and the other documents may also be obtained for free by accessing Washington Mutual's website at www.wamu.com under the tab "About WaMu" and then under the heading "Investor Relations" or by accessing Providian's website at www.providian.com under the tab "About Providian" and then under the heading "Investor Relations."

Washington Mutual, Providian and their respective directors and executive officers and other members of management and employees may be deemed to be participants in the solicitation of proxies in respect of the proposed transaction. Information regarding Washington Mutual's directors and executive officers is available in Washington Mutual's proxy statement for its 2005 annual meeting of shareholders and Washington Mutual's 2004 Annual Report on Form 10-K, which were filed with the SEC on March 23, 2005 and March 14, 2005, respectively, and information regarding Providian's directors and executive officers is available in Providian's proxy statement for its 2005 annual meeting of shareholders and Providian's Annual Report of Form 10-K, which were filed with the SEC on March 31, 2005. Information regarding the persons who may, under the rules of the SEC, be considered participants in the solicitation of Providian shareholders in connection with the proposed transaction is included in the preliminary proxy statement/prospectus, which is available now, and will be included in the definitive proxy statement/prospectus and the other relevant documents filed with the SEC when they become available.

Forward Looking Statement

Our Form 10-K for 2004 and other documents that we filed with the Securities and Exchange Commission have forward-looking statements. In addition, our senior management may make forward-looking statements orally to analysts, investors, the media and others. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words such as "expects," "anticipates," "intends," "plans," "believes," "seeks," "estimates," or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements provide our expectations or predictions of future conditions, events or results. They are not guarantees of future performance. By their nature, forward-looking statements are subject to risks and uncertainties. These statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect the impact of circumstances or events that arise after the date the forward looking statements were made. There are a number of factors, many of which are beyond our control that could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Some of these factors are:

-- Volatile interest rates impact the mortgage banking business and could adversely affect earnings;

-- Rising unemployment or a decrease in housing prices could adversely affect credit performance;

-- The potential for negative amortization in the Option ARM product could have an adverse affect on the company's credit performance;

-- The company faces competition from banking and nonbanking companies;

-- Changes in the regulation of financial services companies and housing government-sponsored enterprises could adversely affect business;

-- General business and economic conditions, including movements in interest rates, may significantly affect the company's business activities and earnings;

-- Negative public opinion could damage the company's reputation and adversely affect earnings; and,

-- Matters related to the proposed merger with Providian Financial Corporation (including, among others, risks related to stockholder and regulatory approvals, integration issues, and the realization of expected growth opportunities and cost savings from the merger).

WM-1

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



                                        Quarter Ended
----------------------------------------------------------------------
                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                        2005      2005      2004      2004      2004
  ------------------  --------  --------  --------  --------  --------
Interest Income
  Loans held for
   sale              $    576  $    470  $    393  $    341  $    406
  Loans held in
   portfolio            2,754     2,544     2,421     2,226     2,111
  Available-for-sale
   securities             234       224       157       163       180
  Trading securities       91        79        66        40        21
  Other interest and
   dividend income         51        43        29        41        34
  ------------------  --------  --------  --------  --------  --------
     Total interest
      income            3,706     3,360     3,066     2,811     2,752
Interest Expense
  Deposits                852       696       604       539       458
  Borrowings              928       774       612       532       500
  ------------------  --------  --------  --------  --------  --------
     Total interest
      expense           1,780     1,470     1,216     1,071       958
  ------------------  --------  --------  --------  --------  --------
       Net interest
        income          1,926     1,890     1,850     1,740     1,794
  Provision for loan
   and lease losses        31        16        37        56        60
  ------------------  --------  --------  --------  --------  --------
       Net interest
        income after
        provision
        for loan and
        lease losses    1,895     1,874     1,813     1,684     1,734
Noninterest Income
  Revenue from sales
   and servicing of
   home mortgage
   loans                  118       777       352       504         -
  Depositor and
   other retail
   banking fees           540       490       515       514       507
  Securities fees
   and commissions        112       110       110       104       105
  Insurance income         47        46        47        61        57
  Portfolio loan
   related income          96        85       101       109       103
  Trading securities
   income (loss)          285       (98)       26        51         5
  Gain (loss) from
   other available-
   for-sale
   securities              25      (122)      (23)       11        41
  Loss on
   extinguishment of
   borrowings               -         -         -      (147)       (1)
  Other income             44       120        89        57        77
  ------------------  --------  --------  --------  --------  --------
       Total
        noninterest
        income          1,267     1,408     1,217     1,264       894
Noninterest Expense
  Compensation and
   benefits               886       876       839       841       849
  Occupancy and
   equipment              350       402       462       404       393
  Telecommunications
   and outsourced
   information
   services               100       104       115       118       123
  Depositor and
   other retail
   banking losses          49        55        61        54        40
  Advertising and
   promotion               77        55        57        76        84
  Professional fees        38        34        54        34        32
  Other expense           328       313       350       342       327
  ------------------  --------  --------  --------  --------  --------
       Total
        noninterest
        expense         1,828     1,839     1,938     1,869     1,848
  ------------------  --------  --------  --------  --------  --------
         Income
          before
          income
          taxes         1,334     1,443     1,092     1,079       780
         Income
          taxes           490       541       424       405       291
  ------------------  --------  --------  --------  --------  --------
Net Income           $    844  $    902  $    668  $    674  $    489
====================  ========  ========  ========  ========  ========

Earnings Per Common
 Share:
  Basic              $   0.98  $   1.04  $   0.77  $   0.78  $   0.57
  Diluted                0.95      1.01      0.76      0.76      0.55

Dividends declared
 per common share        0.47      0.46      0.45      0.44      0.43
Basic weighted
 average number of
 common shares
 outstanding (in
 thousands)           865,221   864,933   863,055   862,004   860,496
Diluted weighted
 average number of
 common shares
 outstanding (in
 thousands)           887,250   888,789   883,991   882,323   883,414


WM-2

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



                                                     Six Months Ended
----------------------------------------------------------------------
                                                     June 30, June 30,
                                                      2005      2004
--------------------------------------------------  --------  --------
Interest Income
   Loans held for sale                             $  1,047  $    738
   Loans held in portfolio                            5,298     4,179
   Available-for-sale securities                        457       444
   Trading securities                                   170        46
   Other interest and dividend income                    95        66
--------------------------------------------------  --------  --------
          Total interest income                       7,067     5,473
Interest Expense
   Deposits                                           1,548       901
   Borrowings                                         1,703     1,046
--------------------------------------------------  --------  --------
          Total interest expense                      3,251     1,947
--------------------------------------------------  --------  --------
               Net interest income                    3,816     3,526
   Provision for loan and lease losses                   47       116
--------------------------------------------------  --------  --------
               Net interest income after provision
                for loan and lease losses             3,769     3,410
Noninterest Income
   Revenue from sales and servicing of home
    mortgage loans                                      895       531
   Depositor and other retail banking fees            1,030       969
   Securities fees and commissions                      223       212
   Insurance income                                      93       118
   Portfolio loan related income                        181       190
   Trading securities income                            186        13
   Gain (loss) from other available-for-sale
    securities                                          (97)       62
   Loss on extinguishment of borrowings                   -       (90)
   Other income                                         163       126
--------------------------------------------------  --------  --------
          Total noninterest income                    2,674     2,131
Noninterest Expense
   Compensation and benefits                          1,761     1,748
   Occupancy and equipment                              752       794
   Telecommunications and outsourced information
    services                                            204       246
   Depositor and other retail banking losses            104        80
   Advertising and promotion                            132       143
   Professional fees                                     72        71
   Other expense                                        642       646
--------------------------------------------------  --------  --------
          Total noninterest expense                   3,667     3,728
--------------------------------------------------  --------  --------
               Income from continuing operations
                before income taxes                   2,776     1,813
               Income taxes                           1,031       676
--------------------------------------------------  --------  --------
                    Income from continuing
                     operations, net of taxes         1,745     1,137
--------------------------------------------------  --------  --------
Discontinued Operations
               Loss from discontinued operations
                before income taxes                       -       (32)
               Gain on disposition of discontinued
                operations                                -       676
               Income taxes                               -       245
--------------------------------------------------  --------  --------
                    Income from discontinued
                     operations, net of taxes             -       399
--------------------------------------------------  --------  --------
Net Income                                         $  1,745  $  1,536
==================================================  ========  ========

Basic Earnings Per Common Share:
    Income from continuing operations              $   2.02  $   1.32
    Income from discontinued operations, net              -      0.46
                                                    --------  --------
    Net income                                         2.02      1.78

Diluted Earnings Per Common Share:
    Income from continuing operations                  1.97      1.29
    Income from discontinued operations, net              -      0.45
                                                    --------  --------
    Net income                                         1.97      1.74

Dividends declared per common share                    0.93      0.85
Basic weighted average number of common shares
 outstanding (in thousands)                         865,078   861,898
Diluted weighted average number of common shares
 outstanding (in thousands)                         888,020   884,940


WM-3

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


                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                       2005      2005      2004      2004      2004
-------------------- --------- --------- --------- --------- ---------
Assets
   Cash and cash
    equivalents      $  4,614  $  4,811  $  4,455  $  4,689  $  5,133
   Federal funds
    sold and
    securities
    purchased under
    agreements to
    resell                625     1,152        82        30        70
   Trading
    securities          5,687     6,066     5,588     3,113     1,336
   Available-for-
    sale securities,
    total amortized
    cost of $18,999,
    $20,569, $19,047,
    $16,312 and
    $19,392:
         Mortgage-
          backed
          securities   14,396    15,947    14,923    10,168    10,042
         Investment
          securities    4,852     4,756     4,296     6,319     9,337
   Loans held for
    sale               51,122    41,197    42,743    29,184    27,795
   Loans held in
    portfolio         212,737   214,114   207,071   206,158   194,543
   Allowance for
    loan and lease
    losses             (1,243)   (1,280)   (1,301)   (1,322)   (1,293)
-------------------- --------- --------- --------- --------- ---------
           Total
            loans
            held in
            port-
            folio,
            net of
            allow-
            ance for
            loan and
            lease
            losses    211,494   212,834   205,770   204,836   193,250
   Investment in
    Federal Home
    Loan Banks          4,194     3,973     4,059     3,883     3,965
   Mortgage
    servicing rights    5,730     6,802     5,906     6,112     7,501
   Goodwill             6,196     6,196     6,196     6,196     6,196
   Other assets        14,623    15,962    13,900    14,298    13,919
--------------------  --------  --------  --------  --------  --------
           Total
            assets   $323,533  $319,696  $307,918  $288,828  $278,544
==================== ========= ========= ========= ========= =========
Liabilities
   Deposits:
        Noninterest-
         bearing
         deposits    $ 35,518  $ 34,941  $ 32,780  $ 32,250  $ 33,343
        Interest-
         bearing
         deposits     148,799   148,690   140,878   136,445   129,123
-------------------- --------- --------- --------- --------- ---------
           Total
            deposits  184,317   183,631   173,658   168,695   162,466
   Federal funds
    purchased and
    commercial paper    5,864     2,053     4,045     7,025     2,293
   Securities sold
    under agreements
    to repurchase      14,089    16,716    15,944    15,611    15,764
   Advances from
    Federal Home
    Loan Banks         71,534    66,730    70,074    59,758    61,379
   Other borrowings    20,752    21,938    18,498    12,747    12,113
   Other liabilities    4,627     6,861     4,473     4,172     4,160
-------------------- --------- --------- --------- --------- ---------
           Total
            lia-
            bilities  301,183   297,929   286,692   268,008   258,175
Stockholders' equity   22,350    21,767    21,226    20,820    20,369
-------------------- --------- --------- --------- --------- ---------
           Total
            lia-
            bilities
            and
            stock-
            holders'
            equity   $323,533  $319,696  $307,918  $288,828  $278,544
==================== ========= ========= ========= ========= =========
Common shares
 outstanding at end
 of period (in
 thousands)(1)        878,384   877,287   874,262   873,085   872,246
Book value per
 common share(2)     $  25.62  $  24.98  $  24.45  $  24.01  $  23.51
Tangible book value
 per common share(2)    18.66     18.01     17.45     16.99     16.47
Employees at end of
 period                54,377    52,488    52,579    55,488    57,274



(1)Includes 6,000,000 shares held in escrow in all periods reported.
(2)Excludes 6,000,000 shares held in escrow in all periods reported.


WM-4

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

                                        Quarter Ended
----------------------------------------------------------------------
                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2005     2005     2004     2004      2004
------------------------ -------- -------- -------- --------- --------
Stockholders' Equity
 Rollforward
Balance, beginning of
 period                  $21,767  $21,226  $20,820  $ 20,369  $20,383
Net income                   844      902      668       674      489
Other comprehensive
 income (loss), net of
 tax                          98       (8)      49        98     (210)
Cash dividends declared
 on common stock            (409)    (402)    (390)     (381)    (372)
Common stock repurchased
 and retired                   -     (100)       -         -        -
Common stock issued           50      149       79        60       79
------------------------  -------  -------  -------  --------  -------
Balance, end of period   $22,350  $21,767  $21,226  $ 20,820  $20,369
======================== ======== ======== ======== ========= ========

WM-5

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

                                       Quarter Ended
-------------------- -------------------------------------------------
                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                       2005      2005      2004      2004      2004
-------------------- --------- --------- --------- --------- ---------
RETAIL BANKING AND
 FINANCIAL SERVICES
 GROUP
    Condensed income
     statement:
        Net interest
         income      $  1,384  $  1,343  $  1,323  $  1,255  $  1,224
        Provision
         for loan
         and lease
         losses            42        37        34        42        43
        Noninterest
         income           751       695       717       715       703
        Inter-
         segment
         revenue           11        12         8         3         7
        Noninterest
         expense        1,173     1,147     1,129     1,113     1,113
-------------------- --------- --------- --------- --------- ---------
        Income
         before
         income
         taxes            931       866       885       818       778
        Income taxes      352       327       318       310       295
-------------------- --------- --------- --------- --------- ---------
             Net
              income $    579  $    539  $    567  $    508  $    483
====================  ========  ========  ========  ========  ========
    Performance and
     other data:
        Efficiency
         ratio(1)       48.61%    49.74%    48.83%    49.83%    50.87%
        Average
         loans       $181,396  $177,635  $177,204  $167,569  $158,966
        Average
         assets       194,010   190,479   189,872   180,003   171,343
        Average
         deposits     135,539   132,982   132,771   131,850   128,680
        Loan volume    11,704    12,493    13,337    14,178    14,988
        Employees at
         end of
         period        32,429    30,898    30,010    29,967    29,533

HOME LOANS GROUP
    Condensed income
     statement:
        Net interest
         income      $    303  $    286  $    293  $    287  $    369
        Noninterest
         income           618       682       566       769       208
        Inter-
         segment
         expense           11        12         8         3         7
        Noninterest
         expense          574       567       629       614       666
-------------------- --------- --------- --------- --------- ---------
        Income
         (loss)
         before
         income
         taxes            336       389       222       439       (96)
        Income taxes
         (benefit)        127       147        80       165       (37)
-------------------- --------- --------- --------- --------- ---------
             Net
              income
              (loss) $    209  $    242  $    142  $    274  $    (59)
==================== ========= ========= ========= ========= =========
    Performance and
     other data:
        Efficiency
         ratio(1)       57.44%    53.85%    67.78%    53.31%   107.91%
        Average
         loans       $ 31,434  $ 27,765  $ 24,880  $ 22,611  $ 26,999
        Average
         assets        51,542    49,019    44,195    40,037    44,568
        Average
         deposits      13,940    13,107    15,121    15,385    19,837
        Loan volume    44,855    38,498    41,782    40,491    56,219
        Employees at
         end of
         period        12,534    12,565    13,843    16,524    18,630

COMMERCIAL GROUP
    Condensed income
     statement:
        Net interest
         income      $    349  $    323  $    322  $    325  $    342
        Provision
         for loan
         and lease
         losses             2         2        11         8        10
        Noninterest
         income            72       158        61        65       102
        Noninterest
         expense          195       175       192       164       149
-------------------- --------- --------- --------- --------- ---------
        Income
         before
         income
         taxes            224       304       180       218       285
        Income taxes       73       104        56        75       101
--------------------  --------  --------  --------  --------  --------
             Net
              income $    151  $    200  $    124  $    143  $    184
==================== ========= ========= ========= ========= =========
    Performance and
     other data:
        Efficiency
         ratio(1)       39.15%    30.36%    42.23%    34.52%    26.89%
        Average
         loans       $ 47,233  $ 41,783  $ 40,917  $ 38,799  $ 38,496
        Average
         assets        52,439    46,644    45,675    43,727    43,746
        Average
         deposits       7,649     7,308     7,791     7,811     6,898
        Loan volume    11,059     8,524     8,102     7,156     8,314
        Employees at
         end of
         period         3,793     3,530     3,432     3,539     3,477



                                                    Six Months Ended
----------------------------------------------------------------------
                                                    June 30,  June 30,
                                                     2005      2004
--------------------------------------------------  --------  --------
RETAIL BANKING AND
 FINANCIAL SERVICES
 GROUP
    Condensed income
     statement:
        Net interest
         income                                    $  2,727  $  2,412
        Provision
         for loan
         and lease
         losses                                          78       101
        Noninterest
         income                                       1,445     1,326
        Inter-
         segment
         revenue                                         23        12
        Noninterest
         expense                                      2,320     2,180
--------------------------------------------------  --------  --------
        Income
         before
         income
         taxes                                        1,797     1,469
        Income taxes                                    679       556
--------------------------------------------------  --------  --------
             Net
              income                               $  1,118  $    913
==================================================  ========  ========
    Performance and
     other data:
        Efficiency
         ratio(1)                                     49.16%    51.29%
        Average
         loans                                     $179,525  $154,171
        Average
         assets                                     192,254   166,352
        Average
         deposits                                   134,268   128,340
        Loan volume                                  24,197    27,766
        Employees at
         end of
         period                                      32,429    29,533

HOME LOANS GROUP
    Condensed income
     statement:
        Net interest
         income                                    $    589  $    657
        Noninterest
         income                                       1,300       969
        Inter-
         segment
         expense                                         23        12
        Noninterest
         expense                                      1,141     1,344
--------------------------------------------------  --------  --------
        Income
         (loss)
         before
         income
         taxes                                          725       270
        Income taxes
         (benefit)                                      274       102
--------------------------------------------------  --------  --------
             Net
              income
              (loss)                               $    451  $    168
==================================================  ========  ========
    Performance and
     other data:
        Efficiency
         ratio(1)                                     55.60%    76.82%
        Average
         loans                                     $ 29,609  $ 23,435
        Average
         assets                                      50,288    41,740
        Average
         deposits                                    13,526    17,357
        Loan volume                                  83,353    99,938
        Employees at
         end of
         period                                      12,534    18,630

COMMERCIAL GROUP
    Condensed income
     statement:
        Net interest
         income                                    $    672  $    685
        Provision
         for loan
         and lease
         losses                                           4        26
        Noninterest
         income                                         230       188
        Noninterest
         expense                                        370       305
--------------------------------------------------  --------  --------
        Income
         before
         income
         taxes                                          528       542
        Income taxes                                    177       190
--------------------------------------------------  --------  --------
             Net
              income                               $    351  $    352
==================================================  ========  ========
    Performance and
     other data:
        Efficiency
         ratio(1)                                     34.48%    28.20%
        Average
         loans                                     $ 44,523  $ 37,740
        Average
         assets                                      49,558    43,274
        Average
         deposits                                     7,479     6,474
        Loan volume                                  19,583    13,982
        Employees at
         end of
         period                                       3,793     3,477

(This table is continued on "WM-6".)

(1) The efficiency ratio is defined as noninterest expense, excluding
    a cost of capital charge on goodwill, divided by total revenue
    (net interest income and noninterest income).


WM-6

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



                                       Quarter Ended
-------------------- -------------------------------------------------
(This table is       June 30,  Mar. 31,  Dec. 31,  Sept. 30, June 30,
 continued from "WM-    2005      2005      2004      2004      2004
 5".)
----------------------------------------------------------------------
CORPORATE SUPPORT/TREASURY AND OTHER
    Condensed income
     statement:
        Net interest
         expense     $   (225) $   (175) $   (201) $   (237) $   (247)
        Noninterest
         income
         (expense)        (39)      (65)       12      (123)       24
        Noninterest
         expense           96       158       200       190       130
--------------------  --------  --------  --------  --------  --------
        Loss from
         continuing
         operations      (360)     (398)     (389)     (550)     (353)
        Income taxes
         (benefit)       (133)     (149)     (151)     (206)     (132)
--------------------  --------  --------  --------  --------  --------
          Loss from
           con-
           tinuing
           oper-
           ations        (227)     (249)     (238)     (344)     (221)
        Income from
         dis-
         continued
         operations,
         net of
         taxes              -         -         -         -         -
--------------------  --------  --------  --------  --------  --------
             Net
              loss   $   (227) $   (249) $   (238) $   (344) $   (221)
====================  ========  ========  ========  ========  ========
      Performance and other
       data:
         Average
          assets     $ 24,598  $ 23,812  $ 19,282  $ 21,724  $ 26,028
         Average
          deposits     26,393    21,788    18,190    13,820     9,391
         Employees
          at end of
          period        5,621     5,495     5,294     5,458     5,634

RECONCILING
 ADJUSTMENTS
    Condensed income
     statement:
        Net interest
         income(2)   $    115  $    113  $    113  $    110  $    106
        Provision
         (reversal
         of reserve)
          for loan
         and lease
         losses(3)        (13)      (23)       (8)        6         7
        Noninterest
         income
         (expense)
         (4)             (135)      (62)     (139)     (162)     (143)
        Noninterest
         (income)
         expense(5)      (210)     (208)     (212)     (212)     (210)
--------------------  --------  --------  --------  --------  --------
        Income
         before
         income
         taxes            203       282       194       154       166
        Income
         taxes(6)          71       112       121        61        64
--------------------  --------  --------  --------  --------  --------
             Net
              income $    132  $    170  $     73  $     93  $    102
====================  ========  ========  ========  ========  ========
    Performance and other
     data:
        Average
         loans(7)    $ (1,541) $ (1,556) $ (1,622) $ (1,600) $ (1,553)
        Average
         assets (7)
         (8)           (1,744)   (1,782)   (1,866)   (1,822)   (1,745)

TOTAL CONSOLIDATED
    Condensed income
     statement:
        Net interest
         income      $  1,926  $  1,890  $  1,850  $  1,740  $  1,794
        Provision
         for loan
         and lease
         losses            31        16        37        56        60
        Noninterest
         income         1,267     1,408     1,217     1,264       894
        Noninterest
         expense        1,828     1,839     1,938     1,869     1,848
--------------------  --------  --------  --------  --------  --------
        Income from
         continuing
         operations
         before
         income
         taxes          1,334     1,443     1,092     1,079       780
        Income taxes      490       541       424       405       291
--------------------  --------  --------  --------  --------  --------
           Income
            from
            con-
            tinuing
            oper-
            ations        844       902       668       674       489
        Income from
         dis-
         continued
         oper-
         ations, net
         of taxes           -         -         -         -         -
--------------------  --------  --------  --------  --------  --------
             Net
              income $    844  $    902  $    668  $    674  $    489
====================  ========  ========  ========  ========  ========
    Performance and other
     data:
        Efficiency
         ratio(9)       57.24%    55.77%    63.18%    62.19%    68.77%
        Average
         loans       $258,522  $245,627  $241,379  $227,379  $222,908
        Average
         assets       320,845   308,172   297,158   283,669   283,940
        Average
         deposits     183,521   175,185   173,873   168,866   164,806
        Loan volume    67,618    59,515    63,221    61,825    79,521
        Employees at
         end of
         period        54,377    52,488    52,579    55,488    57,274




                                                    Six Months Ended
----------------------------------------------------------------------
(This table is                                     June 30,  June 30,
 continued from "WM-                                  2005      2004
 5".)
----------------------------------------------------------------------
CORPORATE
 SUPPORT/TREASURY
 AND OTHER
    Condensed income
     statement:
        Net interest
         expense                                   $   (400) $   (437)
        Noninterest
         income
         (expense)                                     (104)      (45)
        Noninterest
         expense                                        254       319
--------------------                                --------  --------
        Loss from
         continuing
         operations                                    (758)     (801)
        Income taxes
         (benefit)                                     (282)     (299)
--------------------                                --------  --------
            Loss
             from
             con-
             tinuing
             oper-
             ations                                    (476)     (502)
        Income from
         dis-
         continued
         oper-
         ations, net
         of taxes                                         -       399
--------------------                                --------  --------
             Net
              loss                                 $   (476) $   (103)
====================                                ========  ========
      Performance
       and other
       data:
         Average
          assets                                   $ 24,207  $ 28,014
         Average
          deposits                                   24,103     7,209
         Employees
          at end of
          period                                      5,621     5,634

RECONCILING
 ADJUSTMENTS
    Condensed income
     statement:
        Net interest
         income(2)                                 $    228  $    209
        Provision
         (reversal
         of reserve)
          for loan
         and lease
         losses(3)                                      (35)      (11)
        Noninterest
         income
         (expense)
         (4)                                           (197)     (307)
        Noninterest
         (income)
         expense(5)                                    (418)     (420)
--------------------                                --------  --------
        Income
         before
         income
         taxes                                          484       333
        Income
         taxes(6)                                       183       127
--------------------                                --------  --------
             Net
              income                               $    301  $    206
====================                                ========  ========
    Performance and
     other data:
        Average
         loans(7)                                  $ (1,548) $ (1,529)
        Average
         assets (7)
         (8)                                         (1,763)   (1,707)

TOTAL CONSOLIDATED
    Condensed income
     statement:
        Net interest
         income                                    $  3,816  $  3,526
        Provision
         for loan
         and lease
         losses                                          47       116
        Noninterest
         income                                       2,674     2,131
        Noninterest
         expense                                      3,667     3,728
--------------------                                --------  --------
        Income from
         continuing
         operations
         before
         income
         taxes                                        2,776     1,813
        Income taxes                                  1,031       676
--------------------                                --------  --------
           Income
            from
            con-
            tinuing
            oper-
            ations                                    1,745     1,137
        Income from
         dis-
         continued
         oper-
         ations, net
         of taxes                                         -       399
--------------------                                --------  --------
             Net
              income                               $  1,745  $  1,536
====================                                ========  ========
    Performance and
     other data:
        Efficiency
         ratio(9)                                     56.49%    65.92%
        Average
         loans                                     $252,109  $213,817
        Average
         assets                                     314,544   277,673
        Average
         deposits                                   179,376   159,380
        Loan volume                                 127,133   141,686
        Employees at
         end of
         period                                      54,377    57,274



(2) Represents the difference between home loan premium amortization
    recorded by the Retail Banking and Financial Services Group and
    the amount recognized in the Company's Consolidated Statements of
    Income.  For management reporting purposes, loans that are held in
    portfolio by the Retail Banking and Financial Services Group are
    treated as if they are purchased from the Home Loans Group.  Since
    the cost basis of these loans includes an assumed profit factor
    paid to the Home Loans Group, the amortization of loan premiums
    recorded by the Retail Banking and Financial Services Group
    includes this assumed profit factor and must therefore be
    eliminated as a reconciling adjustment.
(3) Represents the difference between the long-term, normalized net
    charge-off ratio used to assess expected loan and lease losses for
    the operating segments and the "losses inherent in the loan
    portfolio" methodology used by the Company.
(4) Represents the difference between gain from mortgage loans
    recorded by the Home Loans Group and the gain from mortgage loans
    recognized in the Company's Consolidated  Statements of Income.
    As the Home Loans Group holds no loans in portfolio, all loans
    originated or purchased by this segment are considered to be
    salable for management reporting purposes.
(5) Represents the corporate offset for the cost of capital related to
    goodwill that has been allocated to the segments.
(6) Represents the tax effect of reconciling adjustments.
(7) Includes the inter-segment offset for inter-segment loan premiums
    that the Retail Banking and Financial Services Group recognized
    from the transfer of portfolio loans from the Home Loans Group.
(8) Includes the impact to the allowance for the loan and lease losses
    per the following table that results from the difference between
    the long-term, normalized net charge-off ratio used to assess
    expected loan and lease losses for the operating segments and the
    "losses inherent in the loan portfolio" methodology used by the
    Company.
 ---------------------------------------------------------------------
                  Quarter Ended                     Six Months Ended
 ------------------------------------------------ --------------------
 June 30,   Mar. 31, Dec. 31, Sept. 30, June 30,   June 30,  June 30,
    2005      2005     2004      2004      2004      2005      2004
 ---------- -------- -------- --------- --------- --------- ----------
   $(203)    $(226)   $(244)   $(222)    $(192)    $(215)     $(178)
 ---------- -------- -------- --------- --------- --------- ----------

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


WM-7

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

                                      Quarter Ended
--------------------- -----------------------------------------------
                     June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                       2005      2005      2004      2004      2004
-------------------- --------- --------- --------- --------- ---------
PROFITABILITY
  Net interest
   income           $  1,926  $  1,890  $  1,850  $  1,740  $  1,794
  Net interest
   margin               2.66 %    2.73 %    2.79 %    2.77 %    2.86 %
  Noninterest
   income           $  1,267  $  1,408  $  1,217  $  1,264  $    894
  Noninterest
   expense             1,828     1,839     1,938     1,869     1,848
  Basic earnings
   per common share $   0.98  $   1.04  $   0.77  $   0.78  $   0.57
  Diluted earnings
   per common share     0.95      1.01      0.76      0.76      0.55
  Dividends
   declared per
   common share         0.47      0.46      0.45      0.44      0.43
  Return on average
   assets               1.05 %    1.17 %    0.90 %    0.95 %    0.69 %
  Return on average
   common equity       15.33     16.63     12.71     13.03      9.63
  Efficiency
   ratio(1)            57.24     55.77     63.18     62.19     68.77

ASSET QUALITY
  Nonaccrual
   loans(2)(3)      $  1,463  $  1,569  $  1,534  $  1,471  $  1,396
  Foreclosed
   assets(3)             256       264       261       281       286
  Total
   nonperforming
   assets(2)(3)        1,719     1,833     1,795     1,752     1,682
  Nonperforming
   assets/total
   assets(2)(3)         0.53 %    0.57 %    0.58 %    0.61 %    0.60 %
  Restructured
   loans(3)         $     25  $     27  $     34  $     38  $     79
  Total
   nonperforming
   assets and
   restructured
   loans(2)(3)         1,744     1,860     1,829     1,790     1,761
  Allowance for
   loan and lease
   losses(3)           1,243     1,280     1,301     1,322     1,293
  Allowance as a
   percentage of
   total loans held
   in portfolio(3)      0.58 %    0.60 %    0.63 %    0.64 %    0.66 %
  Provision for
   loan and lease
   losses           $     31  $     16  $     37  $     56  $     60
  Net charge-offs         39        37        38        27        24

CAPITAL ADEQUACY(3)
Capital Ratios at WMI
 -consolidated level:
  Stockholders'
   equity/total
   assets               6.91 %    6.81 %    6.89 %    7.21 %    7.31 %
  Tangible common
   equity(4)/total
   tangible
   assets(4)            5.13      5.03      5.05      5.26      5.32
  Estimated total
   risk-based
   capital/total
   risk-weighted
   assets(5)           11.16     11.21     11.34     10.64     10.39
Capital Ratios at WMB
 - bank only level
 (well-capitalized
 minimum):(6)
  Tier 1 capital to
   adjusted total
   assets (5.00%)       5.74      5.69      5.46      5.85      5.96
  Adjusted tier 1
   capital to total
   risk-weighted
   assets (6.00%)       8.42      8.40      8.12      8.24      8.60
  Total risk-based
   capital to total
   risk-weighted
   assets (10.00%)     11.56     11.68     11.68     10.94     10.85

SUPPLEMENTAL DATA
    Average balance
     sheet:
     Total loans
      held for sale $ 44,884  $ 38,307  $ 33,083  $ 28,220  $ 33,096
     Total loans
      held in
      portfolio      213,638   207,320   208,296   199,159   189,812
     Total
      interest-
      earning
      assets         290,876   277,080   266,375   252,235   251,264
     Total assets    320,845   308,172   297,158   283,669   283,940
     Total
      interest-
      bearing
      deposits       149,144   142,639   139,938   135,600   127,670
     Total
      noninterest-
      bearing
      deposits        34,377    32,546    33,935    33,266    37,136
     Total
      stockholders'
      equity          22,014    21,680    21,025    20,703    20,288
    Period-end
     balance sheet:
     Loans held for
      sale            51,122    41,197    42,743    29,184    27,795
     Loans held in
      portfolio,
      net of
      allowance for
      loan and lease
      losses         211,494   212,834   205,770   204,836   193,250
     Interest-
      earning
      assets         293,613   287,205   278,762   258,855   247,088
     Total assets    323,533   319,696   307,918   288,828   278,544
     Interest-
      bearing
      deposits       148,799   148,690   140,878   136,445   129,123
     Noninterest-
      bearing
      deposits        35,518    34,941    32,780    32,250    33,343
     Total
      stockholders'
      equity          22,350    21,767    21,226    20,820    20,369


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

(2) Excludes nonaccrual loans held for sale.

(3) As of quarter end.

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

(5) Estimate of what the total risk-based capital ratio would be if
    Washington Mutual, Inc. were a bank holding company that is
    subject to Federal Reserve Board capital requirements.

(6) Capital ratios for Washington Mutual Bank ("WMB") at June 30, 2005
    are preliminary.


WM-8

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

                                      Quarter Ended
----------------------------------------------------------------------
                        June 30, 2005            Mar. 31, 2005
                    ------------------------ ------------------------
                                    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
  agreements
  to
  resell              $1,972   2.96%    $15    $1,354   2.55%     $9

 Trading
  securities           6,252   5.85      91     5,713   5.54      79
 Available-
  for-
  sale
  securities(1):
  Mortgage-
   backed
   securities         15,065   4.67     176    15,487   4.45     173
  Investment
   securities          4,764   4.84      58     4,627   4.44      51
 Loans
  held
  for
  sale(2)             44,884   5.13     576    38,307   4.91     470
 Loans
  held
  in
  portfolio(2):
  Loans
   secured
   by
   real
   estate:
    Home             111,272   4.80   1,336   110,131   4.59   1,263
    Specialty
     mortgage
     finance(3)       20,913   5.20     272    18,554   5.05     234
-----------------------------        ------- ---------        -------
      Total
       home
       loans         132,185   4.87   1,608   128,685   4.65   1,497
    Home equity
     loans and lines
     of credit        47,200   5.71     672    44,679   5.37     593
    Home con-
     struction(4)      2,047   6.43      33     2,242   5.77      32
    Multi-
     family           23,715   5.17     307    22,667   5.00     283
    Other real
     estate            5,092   6.50      83     5,425   6.02      82
-----------------------------        ------- ---------        -------
       Total
        loans
        secured
        by
        real
        estate       210,239   5.14   2,703   203,698   4.90   2,487
  Consumer               722  10.75      19       770  10.50      20
  Commercial
   business            2,677   4.69      32     2,852   5.19      37
-----------------------------        ------- ---------        -------
       Total loans
        held in
        portfolio    213,638   5.16   2,754   207,320   4.92   2,544
 Other                 4,301   3.45      36     4,272   3.21      34
-----------------------------        ------- ---------        -------
       Total
        interest-
        earning
        assets       290,876   5.10   3,706   277,080   4.86   3,360
Noninterest-
 earning
 assets:
 Mortgage
  servicing
  rights               6,195                    6,090
 Goodwill              6,196                    6,196
 Other assets         17,578                   18,806
-----------------------------                ---------
   Total assets     $320,845                 $308,172
=============================                =========
Liabilities
Interest-bearing
 liabilities:
 Deposits:
  Interest-
   bearing
   checking
   deposits          $47,654   1.86     221   $49,917   1.63     201
  Savings and
   money market
   deposits           41,424   1.60     165    41,997   1.42     147
  Time deposits       60,066   3.10     466    50,725   2.77     348
-----------------------------        ------- ---------        -------
        Total
         interest-
         bearing
         deposits    149,144   2.28     852   142,639   1.97     696
 Federal funds
  purchased and
  commercial paper     2,749   3.09      21     3,486   2.49      22
 Securities sold
  under agreements to
  repurchase          16,390   3.13     130    16,621   2.65     110
 Advances
  from
  Federal
  Home
  Loan
  Banks               69,512   3.21     563    66,591   2.82     469
 Other                21,491   4.00     214    18,400   3.78     173
-----------------------------        ------- ---------        -------
    Total interest-
     bearing
     liabilities     259,286   2.74   1,780   247,737   2.39   1,470
Noninterest-
 bearing
 sources:
 Noninterest-
  bearing
  deposits            34,377                   32,546
 Other
  liabilities          5,168                    6,209
 Stockholders'
  equity              22,014                   21,680
-----------------------------                ---------
    Total
     liabilities
     and
     stockholders'
     equity         $320,845                 $308,172
=============================                =========
 Net
  interest
  spread and
  net
  interest
  income                       2.36  $1,926             2.47  $1,890
                                     =======                  =======
 Impact of
  noninterest-
  bearing
  sources                      0.30                     0.26
 Net
  interest
  margin                       2.66                     2.73




                                              ------------------------
                                                   June 30, 2004
                                              ------------------------
                                                              Interest
                                                              Income/
                                               Balance  Rate  Expense
---------------------                         ------------------------
Average Balances
 and Weighted Average
 Interest Rates
Assets
Interest-earning
 assets:
   Federal funds sold
    and securities
    purchased under
    agreements to
    resell                                      $1,030  1.14%      $3
   Trading securities                            1,284  6.68       21
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities                                9,887  3.92       97
      Investment
       securities                               11,975  2.76       83
   Loans held for
    sale(2)                                     33,096  4.91      406
   Loans held in
    portfolio(2):
      Loans secured
       by real
       estate:
         Home                                  105,360  4.12    1,086
         Specialty
          mortgage
          finance(3)                            15,361  4.77      183
---------------------                         ---------       --------
           Total
            home
            loans                              120,721  4.20    1,269
         Home equity
          loans and
          lines of
          credit                                33,716  4.53      381
         Home con-
          struction(4)                           2,510  5.28       33
         Multi-family                           20,809  4.97      259
         Other real
          estate                                 6,502  6.05       98
---------------------                         ---------       --------
           Total loans
            secured by
            real estate                        184,258  4.43    2,040
      Consumer                                     927  9.92       23
      Commercial
       business                                  4,627  4.11       48
---------------------                         ---------       --------
           Total loans
            held in
            portfolio                          189,812  4.45    2,111
  Other                                          4,180  2.97       31
---------------------                         ---------       --------
           Total
            interest-
            earning
            assets                             251,264  4.38    2,752
Noninterest-earning
 assets:
   Mortgage servicing
    rights                                       7,128
   Goodwill                                      6,196
   Other assets                                 19,352
---------------------                         ---------
         Total assets                         $283,940
=====================                         =========
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-
       bearing
       checking
       deposits                                $65,468  1.28      208
      Savings and
       money market
       deposits                                 29,328  0.82       60
      Time deposits                             32,874  2.31      190
---------------------                         ---------       --------
        Total
         interest-
         bearing
         deposits                              127,670  1.44      458
   Federal funds
    purchased and
    commercial paper                             3,029  1.07        8
   Securities sold
    under agreements
    to repurchase                               17,004  2.28       98
   Advances from
    Federal Home Loan
    Banks                                       59,233  1.88      281
   Other                                        12,774  3.56      113
---------------------                         ---------       --------
       Total
        interest-
        bearing
        liabilities                            219,710  1.74      958
Noninterest-bearing
 sources:
   Noninterest-
    bearing deposits                            37,136
   Other liabilities                             6,806
   Stockholders'
    equity                                      20,288
---------------------                         ---------
       Total
        liabilities
        and
        stockholders'
        equity                                $283,940
=====================                         =========
   Net interest
    spread and net
    interest income                                     2.64   $1,794
                                                              ========
   Impact of
    noninterest-
    bearing sources                                     0.22
   Net interest
    margin                                              2.86

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

(2) Nonaccrual loans and related income, if any, are included in their
    respective loan categories.

(3) Represents purchased subprime loan portfolios and certain
    mortgages originated by Long Beach Mortgage Company.

(4) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale and construction loans made directly to the
    intended occupant of a single-family residence.



WM-9

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

                             Six Months Ended
--------------------------------------------------
                              June 30, 2005
                         ------------------------
                                          Interest
                                          Income/
                          Balance   Rate  Expense
--------------------------------------------------
Average Balances and
 Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and
    securities purchased
    under agreements to
    resell                 $1,665   2.80%    $24
   Trading securities       5,984   5.70     170
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities          15,275   4.56     348
      Investment
       securities           4,696   4.64     109
   Loans held for sale(2)  41,613   5.03   1,047
   Loans held in
    portfolio(2):
      Loans secured by
       real estate:
         Home             110,705   4.69   2,599
         Specialty
          mortgage
          finance(3)       19,740   5.13     506
----------------------------------        -------
             Total home
              loans       130,445   4.76   3,105
         Home equity
          loans and lines
          of credit        45,947   5.54   1,266
         Home
          construction(4)   2,144   6.09      65
         Multi-family      23,194   5.09     590
         Other real
          estate            5,257   6.26     164
----------------------------------        -------
             Total loans
              secured by
              real estate 206,987   5.02   5,190
      Consumer                746  10.62      40
      Commercial business   2,763   4.94      68
----------------------------------        -------
             Total loans
              held in
              portfolio   210,496   5.04   5,298
  Other                     4,287   3.33      71
----------------------------------        -------
             Total
              interest-
              earning
              assets      284,016   4.98   7,067
Noninterest-earning
 assets:
   Mortgage servicing
    rights                  6,143
   Goodwill                 6,196
   Other assets            18,189
----------------------------------
         Total assets    $314,544
==================================
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits  $48,780   1.74     421
      Savings and money
       market deposits     41,709   1.51     312
      Time deposits        55,421   2.95     815
----------------------------------        -------
             Total
              interest-
              bearing
              deposits    145,910   2.13   1,548
   Federal funds
    purchased and
    commercial paper        3,116   2.75      43
   Securities sold under
    agreements to
    repurchase             16,505   2.89     240
   Advances from Federal
    Home Loan Banks        68,059   3.02   1,032
   Other                   19,954   3.90     388
----------------------------------        -------
          Total interest-
           bearing
           liabilities    253,544   2.57   3,251
Noninterest-bearing
 sources:
   Noninterest-bearing
    deposits               33,466
   Other liabilities        5,686
   Stockholders' equity    21,848
----------------------------------
         Total
          liabilities and
          stockholders'
          equity         $314,544
==================================
   Net interest spread
    and net interest
    income                          2.41  $3,816
                                          =======
   Impact of noninterest-
    bearing sources                 0.28
   Net interest margin              2.69



                             Six Months Ended
--------------------------------------------------
                               June 30, 2004
                         -------------------------
                                          Interest
                                          Income/
                          Balance   Rate  Expense
--------------------------------------------------
Average Balances and
 Weighted Average
 Interest Rates
Assets
Interest-earning assets:
   Federal funds sold and
    securities purchased
    under agreements to
    resell                 $1,028   1.24%      $6
   Trading securities       1,256   7.29       46
   Available-for-sale
    securities(1):
      Mortgage-backed
       securities           9,943   4.14      205
      Investment
       securities          15,524   3.08      239
   Loans held for sale(2)  28,780   5.13      738
   Loans held in
    portfolio(2):
      Loans secured by
       real estate:
         Home             104,025   4.18    2,174
         Specialty
          mortgage
          finance(3)       14,689   4.98      366
----------------------------------        --------
             Total home
              loans       118,714   4.28    2,540
         Home equity
          loans and lines
          of credit        31,489   4.62      725
         Home
          construction(4)   2,413   5.30       64
         Multi-family      20,592   5.02      517
         Other real
          estate            6,546   5.91      194
----------------------------------        --------
             Total loans
              secured by
              real estate 179,754   4.50    4,040
      Consumer                962  10.04       48
      Commercial business   4,321   4.15       91
----------------------------------        --------
             Total loans
              held in
              portfolio   185,037   4.52    4,179
  Other                     4,053   2.98       60
----------------------------------        --------
             Total
              interest-
              earning
              assets      245,621   4.46    5,473
Noninterest-earning
 assets:
   Mortgage servicing
    rights                  6,500
   Goodwill                 6,196
   Other assets            19,356
----------------------------------
         Total assets    $277,673
==================================
Liabilities
Interest-bearing
 liabilities:
   Deposits:
      Interest-bearing
       checking deposits  $66,449   1.28      422
      Savings and money
       market deposits     28,122   0.79      110
      Time deposits        30,932   2.39      369
----------------------------------        --------
             Total
              interest-
              bearing
              deposits    125,503   1.44      901
   Federal funds
    purchased and
    commercial paper        3,261   1.07       18
   Securities sold under
    agreements to
    repurchase             19,479   2.08      205
   Advances from Federal
    Home Loan Banks        56,077   2.07      586
   Other                   13,403   3.56      237
----------------------------------        --------
          Total interest-
           bearing
           liabilities    217,723   1.79    1,947
Noninterest-bearing
 sources:
   Noninterest-bearing
    deposits               33,877
   Other liabilities        5,885
   Stockholders' equity    20,188
----------------------------------
         Total
          liabilities and
          stockholders'
          equity         $277,673
==================================
   Net interest spread
    and net interest
    income                          2.67   $3,526
                                          ========
   Impact of noninterest-
    bearing sources                 0.21
   Net interest margin              2.88



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

(2) Nonaccrual loans and related income, if any, are included in their
    respective loan categories.

(3) Represents purchased subprime loan portfolios and certain
    mortgages originated by Long Beach Mortgage Company.

(4) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale and construction loans made directly to the
    intended occupant of a single-family residence.



WM-10

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

                        Change
                         from
                        Mar. 31,
                         2005
                       to June 30,  June 30,    Mar. 31,    Dec. 31,
                         2005         2005        2005        2004
---------------------------------------------------------------------
Deposits
   Retail deposits:
      Checking deposits:
         Noninterest
          bearing         $494     $19,093     $18,599     $17,463
         Interest
          bearing       (2,957)     46,031      48,988      51,099
---------------------------------------------------------------------
            Total
             checking
             deposits   (2,463)     65,124      67,587      68,562
      Savings and money
       market deposits    (670)     34,514      35,184      36,836
      Time deposits(1)   4,343      36,162      31,819      27,268
---------------------------------------------------------------------
            Total retail
             deposits    1,210     135,800     134,590     132,666
      Commercial
       business deposits 1,201       9,648       8,447       7,611
      Wholesale deposits(1,331)     23,638      24,969      18,448
      Custodial and
       escrow
       deposits(2)        (394)     15,231      15,625      14,933
---------------------------------------------------------------------
            Total
             deposits     $686    $184,317    $183,631    $173,658
=====================================================================

                         Sept. 30,     June 30,
                           2004         2004
-------------------------------------------------
Deposits
   Retail deposits:
      Checking deposits:
         Noninterest
          bearing          $16,178       $15,666
         Interest
          bearing           52,378        59,395
-------------------------------------------------
            Total
             checking
             deposits       68,556        75,061
      Savings and money
       market deposits      38,620        30,413
      Time deposits(1)      24,825        23,990
-------------------------------------------------
            Total retail
             deposits      132,001       129,464
      Commercial
       business deposits     7,369         7,176
      Wholesale deposits    14,052         8,874
      Custodial and
       escrow
       deposits(2)          15,273        16,952
-------------------------------------------------
            Total
             deposits     $168,695      $162,466
=================================================


(1) Weighted average remaining maturity of time deposits was 13 months
    at June 30, 2005, 14 months at March 31, 2005 and 16 months at
    December 31, 2004, September 30, 2004 and June 30, 2004.

(2) Substantially all custodial and escrow deposits reside in
    noninterest-bearing checking accounts.


                                   June 30,    Mar. 31,    Dec. 31,
                                      2005        2005        2004
---------------------------------------------------------------------
Retail Deposit
 Accounts(1)
     Checking                    9,427,222   9,183,194   8,981,060
     Money market and
      savings                    5,395,091   5,250,907   5,110,674
---------------------------------------------------------------------
            Total
             transaction
             accounts(2)        14,822,313  14,434,101  14,091,734
     Time deposits               1,416,689   1,300,580   1,208,870
---------------------------------------------------------------------
            Total
             accounts,
             end of
             period             16,239,002  15,734,681  15,300,604
=====================================================================

     Net transaction
      account changes              388,212     342,367     186,027
     Net total account
      changes                      504,321     434,077     223,770


                            Sept. 30,      June 30,
                              2004          2004
-------------------------------------------------
Retail Deposit
 Accounts(1)
     Checking             8,874,823     8,731,827
     Money market and
      savings             5,030,884     4,848,134
-------------------------------------------------
            Total
             transaction
             accounts(2) 13,905,707    13,579,961
     Time deposits        1,171,127     1,165,002
-------------------------------------------------
            Total
             accounts,
             end of
             period      15,076,834    14,744,963
=================================================

     Net transaction
      account changes       325,746       386,663
     Net total account
      changes               331,871       365,937

(1) The information provided in this table represents the number of
    accounts.

(2) Transaction accounts include retail checking, small business
    checking, retail savings and small business savings.


                                   June 30,    Mar. 31,    Dec. 31,
                                      2005        2005        2004
---------------------------------------------------------------------
Retail Banking Stores
Stores, beginning of
 period                              1,968       1,939       1,872
     Net stores opened
      during the quarter                29          29          67
---------------------------------------------------------------------
Stores, end of period                1,997       1,968       1,939
=====================================================================

                          Sept. 30,      June 30,
                              2004          2004
-------------------------------------------------
Retail Banking Stores
Stores, beginning of
 period                      1,816         1,755
     Net stores opened
      during the quarter        56            61
-------------------------------------------------
Stores, end of period        1,872         1,816
=================================================


                                   June 30,    Mar. 31,    Dec. 31,
                                      2005        2005        2004
---------------------------------------------------------------------
Assets Under Management            $23,348     $22,454     $22,196
=====================================================================


                          Sept. 30,      June 30,
                              2004          2004
-------------------------------------------------
Assets Under Management    $20,617       $20,106
=================================================



WM-11

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

                                        Quarter Ended
----------------------------------------------------------------------
                         June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
                           2005     2005      2004     2004      2004
------------------------ -------- --------  -------- --------  -------
Loan Volume
   Home loans:
      Adjustable rate   $25,293  $22,947   $26,141  $25,589   $29,753
      Fixed rate         19,355   17,147    15,448   14,635    26,076
      Specialty mortgage
       finance(1)         8,753    7,656     9,362    7,536     7,323
------------------------ -------- --------  -------- --------  -------
         Total home loan
          volume         53,401   47,750    50,951   47,760    63,152
   Home equity loans and
    lines of credit      10,888    8,887     9,307   10,527    11,572
   Home construction
    loans(2)                258      245       293      640       839
   Multi-family           2,459    2,121     2,240    2,050     2,346
   Other real estate        371      345       257      352       760
------------------------ -------- --------  -------- --------  -------
         Total loans
          secured by
          real estate    67,377   59,348    63,048   61,329    78,669
   Consumer                  82       43        77      138        63
   Commercial business      159      124        96      358       789
------------------------ -------- --------  -------- --------  -------
         Total loan
          volume        $67,618  $59,515   $63,221  $61,825   $79,521
======================== ======== ========  ======== ========  =======
Loan Volume by Channel
   Retail               $30,565  $25,569   $28,766  $30,285   $37,720
   Wholesale             20,323   16,716    18,441   16,079    19,534
   Purchased/
    correspondent        16,730   17,230    16,014   15,461    22,267
------------------------ -------- --------  -------- --------  -------
         Total loan
          volume by
          channel       $67,618  $59,515   $63,221  $61,825   $79,521
======================== ======== ========  ======== ========  =======
Refinancing Activity(3)
   Home loan refinancing$27,583  $28,641   $30,752  $23,834   $40,201
   Home equity loans and
    lines of credit and
    consumer                475      392       336      360     1,147
   Home construction
    loans                    13       10        13        9        13
   Multi-family and
    other real estate       700      660       565      621       883
------------------------ -------- --------  -------- --------  -------
         Total
          refinancing   $28,771  $29,703   $31,666  $24,824   $42,244
======================== ======== ========  ======== ========  =======
Home Loan Volume
   Short-term
    adjustable-rate
    loans(4):
      Option ARMs       $19,564  $15,644   $18,898  $18,902   $16,420
      Other ARMs            367      974       972      171     1,026
------------------------ -------- --------  -------- --------  -------
         Total short-
          term
          adjustable-
          rate loans     19,931   16,618    19,870   19,073    17,446
   Medium-term
    adjustable-rate
    loans(5)             13,388   13,409    14,890   12,866    17,536
   Fixed-rate loans      20,082   17,723    16,191   15,821    28,170
------------------------ -------- --------  -------- --------  -------
         Total home loan
          volume        $53,401  $47,750   $50,951  $47,760   $63,152
======================== ======== ========  ======== ========  =======



Note: Pursuant to regulatory guidance, 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 $477 million, $563 million, $785 million, $898
      million and $689 million for the quarters ended June 30, 2005,
      March 31, 2005, December 31, 2004, September 30, 2004 and
      June 30, 2004.

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

(2) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale and construction loans made directly to the
    intended occupant of a single-family residence.

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

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

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



WM-12

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

                                                    Six Months Ended
----------------------------------------------------------------------
                                                    June 30,  June 30,
                                                       2005      2004
--------------------------------------------------- --------- --------
Loan Volume
   Home loans:
      Adjustable rate                              $ 48,241  $ 51,575
      Fixed rate                                     36,502    47,640
      Specialty mortgage finance(1)                  16,408    14,436
--------------------------------------------------- --------- --------
         Total home loan volume                     101,151   113,651
   Home equity loans and lines of credit             19,775    19,988
   Home construction loans(2)                           503     1,448
   Multi-family                                       4,580     3,871
   Other real estate                                    716     1,130
--------------------------------------------------- --------- --------
         Total loans secured by real estate         126,725   140,088
   Consumer                                             126       121
   Commercial business                                  282     1,477
--------------------------------------------------- --------- --------
         Total loan volume                         $127,133  $141,686
=================================================== ========= ========
Loan Volume by Channel
   Retail                                          $ 56,134  $ 65,846
   Wholesale                                         37,039    34,953
   Purchased/correspondent                           33,960    40,887
--------------------------------------------------- --------- --------
         Total loan volume by channel              $127,133  $141,686
=================================================== ========= ========
Refinancing Activity(3)
   Home loan refinancing                           $ 56,224  $ 73,434
   Home equity loans and lines of credit and
    consumer                                            867     2,254
   Home construction loans                               23        25
   Multi-family and other real estate                 1,360     1,458
--------------------------------------------------- --------- --------
         Total refinancing                         $ 58,474  $ 77,171
=================================================== ========= ========
Home Loan Volume
   Short-term adjustable-rate loans(4):
      Option ARMs                                  $ 35,208  $ 29,685
      Other ARMs                                      1,341     1,529
--------------------------------------------------- --------- --------
         Total short-term adjustable-rate loans      36,549    31,214
   Medium-term adjustable-rate loans(5)              26,796    30,350
   Fixed-rate loans                                  37,806    52,087
--------------------------------------------------- --------- --------
         Total home loan volume                    $101,151  $113,651
=================================================== ========= ========

Note: Pursuant to regulatory guidance, 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 $1.04 billion and $1.74 billion for the six
      months ended June 30, 2005 and June 30, 2004.

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

(2) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale and construction loans made directly to the
    intended occupant of a single-family residence.

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

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

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


WM-13

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

                          Change
                           from
                          Mar. 31,
                           2005
                        to June 30,  June 30,  Mar. 31,  Dec. 31,
                           2005        2005      2005      2004
----------------------------------- --------- --------- ---------
Loans by Property Type
   Loans held in
    portfolio:
      Loans secured by
       real estate:
         Home             $(3,045) $109,399  $112,444  $109,950
         Specialty
          mortgage
          finance(1)       (1,365)   20,174    21,539    19,184
-------------------------- -------- --------- --------- ---------
            Total home
             loans         (4,410)  129,573   133,983   129,134
         Home equity loans
          and lines of
          credit            2,600    48,449    45,849    43,650
         Home
          construction(2)    (133)    2,037     2,170     2,344
         Multi-family         993    24,240    23,247    22,282
         Other real
          estate             (396)    4,915     5,311     5,664
-------------------------- -------- --------- --------- ---------
               Total loans
                secured by
                real
                estate     (1,346)  209,214   210,560   203,074
      Consumer                (44)      703       747       792
      Commercial business      13     2,820     2,807     3,205
-------------------------- -------- --------- --------- ---------
               Total loans
                held in
                portfolio  (1,377)  212,737   214,114   207,071
   Less: allowance for
    loan and lease losses      37    (1,243)   (1,280)   (1,301)
-------------------------- -------- --------- --------- ---------
               Total net
                loans held
                in
                portfolio  (1,340)  211,494   212,834   205,770
   Loans held for sale(3)   9,925    51,122    41,197    42,743
-------------------------- -------- --------- --------- ---------
               Total net
                loans     $ 8,585  $262,616  $254,031  $248,513
========================== ======== ========= ========= =========



                           Sept. 30, June 30,
                              2004      2004
-------------------------  --------- --------
Loans by Property Type
   Loans held in
    portfolio:
      Loans secured by
       real estate:
         Home             $112,200  $106,312
         Specialty
          mortgage
          finance(1)        17,335    16,217
-------------------------- --------- --------
            Total home
             loans         129,535   122,529
         Home equity loans
          and lines of
          credit            40,505    36,077
         Home
          construction(2)    2,732     2,605
         Multi-family       21,640    21,156
         Other real
          estate             6,268     6,513
-------------------------  --------- --------
               Total loans
                secured by
                real
                estate     200,680   188,880
      Consumer                 831       892
      Commercial business    4,647     4,771
-------------------------  --------- --------
               Total loans
                held in
                portfolio  206,158   194,543
   Less: allowance for
    loan and lease losses   (1,322)   (1,293)
-------------------------- --------- --------
               Total net
                loans held
                in
                portfolio  204,836   193,250
   Loans held for sale(3)   29,184    27,795
-------------------------  --------- --------
               Total net
                loans     $234,020  $221,045
=========================  ========= ========

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

(2) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale and construction loans made directly to the
    intended occupant of a single-family residence.

(3) Fair value of loans held for sale was $51.39 billion, $41.38
    billion, $43.02 billion, $29.32 billion and $27.92 billion as of
    June 30, 2005, March 31, 2005, December 31, 2004, September 30,
    2004 and June 30, 2004.



WM-14


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

                           Change
                            from
                          Mar. 31,           Weighted         Weighted
                            2005              Average          Average
                         to June 30, June 30,  Coupon  Mar. 31, Coupon
                            2005       2005     Rate    2005     Rate
------------------------------------ ---------------- ----------------
Loans Secured by Real
 Estate and MBS
   Home loans held in
    portfolio:
       Short-term
        adjustable-rate
        loans(1):
           Option ARMs     $(1,405) $ 66,533    5.06%$ 67,938    4.60%
           Other ARMs          441    10,903    6.37   10,462    6.34
---------------------------- ------- ---------------- ----------------
                Total short-
                 term
                 adjustable-
                 rate loans   (964)   77,436    5.24   78,400    4.83
       Medium-term
        adjustable-rate
        loans(2)            (3,290)   43,499    5.53   46,789    5.53
       Fixed-rate loans       (156)    8,638    6.60    8,794    6.67
--------------------------- -------  ---------------- ----------------
                Total home
                 loans held
                 in
                 portfolio  (4,410)  129,573    5.43  133,983    5.20
   Home equity loans and
    lines of credit:
       Short-term (Prime
        based or treasury
        based)(1)            1,456    36,815    6.16   35,359    5.69
       Fixed-rate loans      1,144    11,634    6.37   10,490    6.34
---------------------------- ------- ---------------- ----------------
                Total home
                 equity
                 loans and
                 lines of
                 credit      2,600    48,449    6.21   45,849    5.84
   Multi-family loans held
    in portfolio:
       Short-term
        adjustable-rate
        loans(1):
           Option ARMs         726     8,979    4.98    8,253    4.55
           Other ARMs          250     6,312    5.13    6,062    4.82
---------------------------- ------- ---------------- ----------------
                Total short-
                 term
                 adjustable-
                 rate loans    976    15,291    5.04   14,315    4.66
       Medium-term
        adjustable-rate
        loans(2)                (3)    7,365    5.26    7,368    5.28
       Fixed-rate loans         20     1,584    6.75    1,564    6.80
---------------------------- ------- ---------------- ----------------
                Total multi-
                 family
                 loans held
                 in
                 portfolio     993    24,240    5.22   23,247    5.00
---------------------------- ------- ---------------- ----------------
                Total
                 selected
                 loans held
                 in
                 portfolio
                 secured by
                 real
                 estate(3)    (817)  202,262    5.59  203,079    5.32
   Loans held for sale(4)    9,983    50,986    5.12   41,003    5.11
---------------------------- ------- ---------------- ----------------
                Total
                 selected
                 loans
                 secured by
                 real estate 9,166   253,248    5.50  244,082    5.28
   MBS(5):
       Short-term
        adjustable-rate
        MBS(1)              (1,871)    9,687    4.15   11,558    3.95
       Medium-term
        adjustable-rate
        MBS(2)                 580     1,571    4.68      991    4.45
       Fixed-rate MBS          (74)    3,111    5.20    3,185    5.22
---------------------------- ------- ---------------- ----------------
               Total MBS(6) (1,365)   14,369    4.44   15,734    4.24
---------------------------- ------- ---------------- ----------------
                Total
                 selected
                 loans
                 secured by
                 real estate
                 and MBS   $ 7,801  $267,617    5.44 $259,816    5.22
============================ ======= ================ ================



                                     Weighted
                                     Average
                            June 30,  Coupon
                              2004     Rate
---------------------------- ----------------
Loans Secured by Real Estate
 and MBS
   Home loans held in
    portfolio:
       Short-term
        adjustable-rate
        loans(1):
           Option ARMs      $ 60,813    3.75%
           Other ARMs          9,076    6.59
---------------------------- ----------------
                Total short-
                 term
                 adjustable-
                 rate loans   69,889    4.12
       Medium-term
        adjustable-rate
        loans(2)              44,295    5.43
       Fixed-rate loans        8,345    6.92
---------------------------- ----------------
                Total home
                 loans held
                 in
                 portfolio   122,529    4.78
   Home equity loans and
    lines of credit:
       Short-term (Prime
        based or treasury
        based)(1)             26,565    4.25
       Fixed-rate loans        9,512    6.34
---------------------------- ----------------
                Total home
                 equity
                 loans and
                 lines of
                 credit       36,077    4.80
   Multi-family loans held
    in portfolio:
       Short-term
        adjustable-rate
        loans(1):
           Option ARMs         6,770    4.03
           Other ARMs          5,096    4.13
---------------------------- ----------------
                Total short-
                 term
                 adjustable-
                 rate loans   11,866    4.07
       Medium-term
        adjustable-rate
        loans(2)               7,396    5.34
       Fixed-rate loans        1,894    7.00
---------------------------- ----------------
                Total multi-
                 family
                 loans held
                 in
                 portfolio    21,156    4.78
---------------------------- ----------------
                Total
                 selected
                 loans held
                 in
                 portfolio
                 secured by
                 real
                 estate(3)   179,762    4.79
   Loans held for sale(4)     27,660    5.13
---------------------------- ----------------
                Total
                 selected
                 loans
                 secured by
                 real estate 207,422    4.84
   MBS(5):
       Short-term
        adjustable-rate
        MBS(1)                 9,123    3.23
       Medium-term
        adjustable-rate
        MBS(2)                     -       -
       Fixed-rate MBS            668    6.99
---------------------------- ----------------
                Total MBS(6)   9,791    3.49
---------------------------- ----------------
                Total
                 selected
                 loans
                 secured by
                 real estate
                 and MBS    $217,213    4.77
============================ ================



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

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

(3) At June 30, 2005, March 31, 2005, and June 30, 2004, the
    adjustable-rate loans with lifetime caps were $177.53 billion,
    $179.59 billion and $156.12 billion with a lifetime weighted
    average cap rate of 12.35%, 12.31% and 12.24%.

(4) Excludes student loans.

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

(6) At June 30, 2005, March 31, 2005 and June 30, 2004, the
    adjustable-rate MBS with lifetime caps were $11.10 billion, $12.47
    billion and $6.60 billion with a lifetime weighted average cap
    rate of 10.15%, 10.18% and 11.33%.


                                    Mar. 31, 2005      Dec. 31, 2004
                                   to June 30, 2005   to June 30, 2005
----------------------------------------------------------------------
Rollforward of Loans Held
 for Sale
    Balance, beginning of
     period                             $41,197          $42,743
        Loans originated, purchased
         and transferred from held
         in portfolio                    47,892           83,153
        Loans transferred to
         held in portfolio                 (639)          (2,669)
        Loans sold and other            (37,328)         (72,105)
----------------------------------------------------------------------
    Balance, end of period              $51,122          $51,122
======================================================================

Rollforward of Loans Held in
 Portfolio
    Balance, beginning of
     period                            $214,114         $207,071
        Loans originated,
         purchased and
         transferred from
         held for sale                   23,268           49,552
        Loan payments,
         transferred to held
         for sale and other             (24,645)         (43,886)
----------------------------------------------------------------------
    Balance, end of period             $212,737         $212,737
======================================================================




WM-15

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


                                         Quarter Ended
-------------------------------------------------------------------
Detail of Revenue from   June 30, Mar. 31, Dec. 31, Sept. 30, June 30,
 Sales and Servicing of    2005     2005     2004      2004     2004
 Home Mortgage Loans
------------------------ -------- -------- -------- --------- --------
Gain from home mortgage
 loans and originated
 mortgage-backed
 securities, net of
 hedging and risk
 management instruments:

   Gain from home
    mortgage loans and
    originated mortgage-
    backed securities    $   250  $   181  $   157  $    210  $   113
   Revaluation gain
    (loss) from
    derivatives              (79)      80       25       (23)     139
------------------------  -------  -------  -------  --------  -------

      Gain from home
       mortgage loans
       and originated
       mortgage-backed
       securities, net
       of hedging and
       risk management
       instruments           171      261      182       187      252
------------------------  -------  -------  -------  --------  -------
Home mortgage loan
 servicing revenue
 (expense):
   Home mortgage loan
    servicing revenue,
    net(1)                   527      512      479       485      472
   Amortization of MSR      (564)    (570)    (636)     (589)    (546)
   Net MSR valuation
    adjustments(2)           (77)     539      257       165      (51)
   Revaluation gain
    (loss) from
    derivatives               61       35       70       256     (127)
------------------------  -------  -------  -------  --------  -------

      Home mortgage loan
       servicing revenue
       (expense), net of
        hedging and
       derivative risk
       management
       instruments           (53)     516      170       317     (252)
------------------------  -------  -------  -------  --------  -------
      Total revenue from
       sales and
       servicing of home
       mortgage loans        118      777      352       504        -
------------------------  -------  -------  -------  --------  -------
Impact of other MSR risk
 management instruments:
   Revaluation gain
    (loss) from certain
    trading securities       259     (109)      36        45        -
   Gain (loss) from
    certain available-
    for-sale securities       26      (44)      (4)        -        -
------------------------  -------  -------  -------  --------  -------
      Total impact of
       other MSR risk
       management
       instruments           285     (153)      32        45        -
------------------------  -------  -------  -------  --------  -------
             Total
              revenue
              from sales
              and
              servicing
              of home
              mortgage
              loans and
              all
               MSR risk
                manage-
                ment
                instru-
                ments    $   403  $   624  $   384  $    549  $     -
========================  =======  =======  =======  ========  =======

                                                 Six Months
                                                  Ended
----------------------------------------------------------------------
Detail of Revenue from                               June 30, June 30,
 Sales and Servicing of                                2005     2004
 Home Mortgage Loans

------------------------  -------  -------  -------  --------  -------
Gain from home mortgage
 loans and originated
 mortgage-backed
 securities, net of
 hedging and risk
 management instruments:

   Gain from home
    mortgage loans and
    originated mortgage-
    backed securities                               $    431  $   284
   Revaluation gain from
    derivatives                                            1       80
------------------------  -------  -------  -------  --------  -------

      Gain from home
       mortgage loans
       and originated
       mortgage-backed
       securities, net
       of hedging and
       risk management
       instruments                                       432      364
------------------------  -------  -------  -------  --------  -------
Home mortgage loan
 servicing revenue
 (expense):
   Home mortgage loan
    servicing revenue,
    net(1)                                             1,038      979
   Amortization of MSR                                (1,133)  (1,296)
   Net MSR valuation
    adjustments(2)                                       462     (657)
   Revaluation gain from
    derivatives                                           96    1,141
------------------------  -------  -------  -------  --------  -------

      Home mortgage loan
       servicing revenue
       (expense), net of
        hedging and
       derivative risk
       management
       instruments                                       463      167
------------------------  -------  -------  -------  --------  -------
      Total revenue from
       sales and
       servicing of home
       mortgage loans                                    895      531
------------------------  -------  -------  -------  --------  -------
Impact of other MSR risk
 management instruments:
    Revaluation gain
     from certain
     trading securities                                  151        -
    Gain (loss) from
     certain available-
     for-sale securities                                 (18)      5
------------------------  -------  -------  -------  --------  -------
      Total impact of
       other MSR risk
       management
       instruments                                       133        5
------------------------  -------  -------  -------  --------  -------
             Total
              revenue
              from sales
              and
              servicing
              of home
              mortgage
              loans and
              all
               MSR risk
                manage-
                ment
                instru-
                ments                               $  1,028  $   536
========================  =======  =======  =======  ========  =======


(1) Includes late charges, prepayment fees and loan pool expense,
    which represents the shortfall of what is remitted to investors
    compared to what is collected from the borrowers.
(2) Net of fair value hedge ineffectiveness as well as any
    impairment/reversal recognized on MSR that results from the
    application of the lower of cost or market value accounting
    methodology.



WM-16

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


                                          Quarter Ended
----------------------------------------------------------------------
                               June 30, Mar.  Dec. 31,  Sept. June 30,
                                         31,             30,
                                2005    2005    2004    2004    2004
----------------------------------------------------------------------
MSR Risk Management and
 Amortization:
   Statement No. 133 MSR
    accounting valuation
    adjustments               $  (813) $ 545  $(123) $  (885) $ 1,707
   Amortization of MSR           (564)  (570)  (636)    (589)    (546)
   (Impairment) reversal         (250)   427    179     (266)     227
----------------------------------------------------------------------
        Net change in MSR
         valuation             (1,627)   402   (580)  (1,740)   1,388
Gain (loss) on MSR hedging and
 risk management instruments:
   Statement No. 133 fair
    value hedging adjustments     986   (433)   201    1,316   (1,985)
   Revaluation gain (loss)
    from derivatives               61     35     70      256     (127)
   Revaluation gain (loss)
    from certain trading
    securities                    259   (109)    36       45        -
   Gain (loss) from certain
    available-for-sale
    securities                     26    (44)    (4)       -        -
----------------------------------------------------------------------
        Total gain (loss) on
         MSR hedging and risk
         management instruments 1,332   (551)   303    1,617   (2,112)
----------------------------------------------------------------------
              Total MSR risk
               management and
               amortization   $  (295) $(149) $(277) $  (123) $  (724)
======================================================================

                                                    Six Months Ended
----------------------------------------------------------------------
                                                     June 30, June 30,
                                                       2005     2004
----------------------------------------------------------------------
MSR Risk Management and
 Amortization:
   Statement No. 133 MSR
    accounting valuation
    adjustments                                      $  (268) $ 1,707
   Amortization of MSR                                (1,133)  (1,296)
   (Impairment) reversal                                 177     (379)
----------------------------------------------------------------------
        Net change in MSR
         valuation                                    (1,224)      32
Gain (loss) on MSR hedging and
 risk management instruments:
   Statement No. 133 fair
    value hedging adjustments                            553   (1,985)
   Revaluation gain from
    derivatives                                           96    1,141
   Revaluation gain from
    certain trading securities                           151        -
   Gain (loss) from certain
    available-for-sale
    securities                                           (18)       5
----------------------------------------------------------------------
        Total gain (loss) on
         MSR hedging and risk
         management
         instruments                                     782     (839)
----------------------------------------------------------------------
              Total MSR risk
               management and
               amortization                          $  (442) $  (807)
======================================================================




WM-17

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



                                      Quarter Ended
--------------------------------------------------------------------
                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                        2005      2005      2004      2004      2004
----------------------------------------------------------------------
Rollforward of
 Mortgage Servicing
 Rights ("MSR")(1)(2)
   Balance, beginning
    of period        $  6,802  $  5,906  $  6,112  $  7,501  $  5,239
      Home loans:
         Additions        555       490       372       348       874
         Amortization    (564)     (570)     (636)     (589)     (546)
         (Impairment)
          reversal       (250)      427       179      (266)      227
         Statement No.
          133 MSR
          accounting
          valuation
          adjustments    (813)      545      (123)     (885)    1,707
      Net change in
       commercial
       real estate
       MSR                  -         4         2         3         -
----------------------------------------------------------------------
   Balance, end of
    period(3)        $  5,730  $  6,802  $  5,906  $  6,112  $  7,501
======================================================================
Rollforward of
 Valuation Allowance
 for MSR Impairment
   Balance, beginning
    of period        $  1,513  $  1,981  $  2,653  $  2,417  $  3,035
      Impairment
       (reversal)         250      (427)     (179)      266      (227)
      Other-than-
       temporary
       impairment         (11)      (34)     (486)      (22)     (388)
      Other                (6)       (7)       (7)       (8)       (3)
----------------------------------------------------------------------
   Balance, end of
    period           $  1,746  $  1,513  $  1,981  $  2,653  $  2,417
======================================================================
Rollforward of Loans
 Serviced for Others
   Balance, beginning
    of period        $542,797  $540,392  $551,245  $558,388  $559,807
      Home loans:
         Additions     36,174    34,533    27,218    29,699    54,201
         Loan
          payments
          and other   (35,689)  (32,861)  (38,529)  (37,035)  (56,388)
      Net change in
       commercial real
       estate loans
       serviced for
       others              42       733       458       193       768
----------------------------------------------------------------------
   Balance, end of
    period           $543,324  $542,797  $540,392  $551,245  $558,388
======================================================================

                      June 30,  Mar. 31,  Dec. 31, Sept. 30,  June 30,
                        2005      2005      2004      2004      2004
----------------------------------------------------------------------
Total Servicing
 Portfolio
      Loans serviced
       for others    $543,324  $542,797  $540,392  $551,245  $558,388
      Servicing on
       retained MBS
       without MSR      1,592     1,702     1,808     2,713     2,938
      Servicing on
       owned loans    243,494   233,738   229,879   217,592   205,714
      Subservicing
       portfolio          825       421       461       502       563
----------------------------------------------------------------------
   Total servicing
    portfolio        $789,235  $778,658  $772,540  $772,052  $767,603
======================================================================

                                                    June 30, 2005
----------------------------------------------------------------------
                                                  Unpaid   Weighted
                                                 Principal  Average
                                                  Balance  Servicing
                                                              Fee
----------------------------------------------------------------------
                                                 (in basis points,
Loans Serviced for                                  annualized)
 Others by Loan Type
      Government                                 $ 50,333        47
      Agency                                      334,796        31
      Private                                     135,703        39
      Specialty home
       loans                                       22,492        50
----------------------------------------------------------------------
   Total loans
    serviced for
    others(4)                                    $543,324        35
======================================================================

(1) Net of valuation allowance.

(2) MSR as a percentage of loans serviced for others was 1.05%,
    1.25%, 1.09%, 1.11% and 1.34% at June 30, 2005, March 31, 2005,
    December 31, 2004, September 30, 2004 and June 30, 2004.

(3) At June 30, 2005, the aggregate MSR fair value was $5.74 billion.

(4) Weighted average coupon rate (annualized) was 5.85% at June 30,
    2005.



WM-18

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



                                         Quarter Ended
----------------------------------------------------------------------
                            June 30, Mar. 31, Dec. 31,  Sept. June 30,
                                                           30,
                              2005    2005     2004     2004    2004
----------------------------------------------------------------------
Allowance for Loan and
 Lease Losses
   Balance, beginning of
    quarter                 $1,280  $1,301   $1,322   $1,293  $1,260
   Other                       (29)      -      (20)       -      (3)
   Provision for loan and
    lease losses                31      16       37       56      60
----------------------------------------------------------------------
                             1,282   1,317    1,339    1,349   1,317
   Loans charged off:
      Loans secured by real
       estate:
         Home                  (11)    (11)      (9)      (6)     (8)
         Specialty mortgage
          finance(1)           (11)    (10)     (10)     (11)     (9)
----------------------------------------------------------------------
              Total home
               loans
               charged off     (22)    (21)     (19)     (17)    (17)
         Home equity loans
          and lines of
          credit                (8)     (5)      (3)      (6)     (5)
         Home
          construction(2)       (2)      -       (1)       -       -
         Multi-family           (1)      -       (2)       -       -
         Other real estate      (2)     (1)      (1)      (1)     (1)
----------------------------------------------------------------------
              Total loans
               secured by
               real estate     (35)    (27)     (26)     (24)    (23)
      Consumer                  (9)    (13)     (17)     (11)    (11)
      Commercial business       (8)     (6)      (8)      (4)     (4)
----------------------------------------------------------------------
              Total loans
               charged off     (52)    (46)     (51)     (39)    (38)
   Recoveries of loans
    previously charged off:
      Loans secured by real
       estate:
         Specialty mortgage
          finance(1)             1       1        1        1       1
         Home equity loans
          and lines of
          credit                 1       -        2        -       1
         Multi-family            -       -        -        1       -
         Other real estate       3       1        2        2       4
----------------------------------------------------------------------
              Total loans
               secured by
               real estate       5       2        5        4       6
      Consumer                   6       5        4        5       5
      Commercial business        2       2        4        3       3
----------------------------------------------------------------------
              Total
               recoveries of
               loans
               previously
               charged off      13       9       13       12      14
----------------------------------------------------------------------
      Net charge-offs          (39)    (37)     (38)     (27)    (24)
----------------------------------------------------------------------
   Balance, end of quarter  $1,243  $1,280   $1,301   $1,322  $1,293
======================================================================

   Net charge-offs
    (annualized) as a
    percentage
     of average loans held
      in portfolio            0.07 %  0.07  %  0.07  %  0.05 %  0.05 %
   Allowance as a percentage
    of total loans held in
    portfolio                 0.58    0.60     0.63     0.64    0.66

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

(2) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale and construction loans made directly to the
    intended occupant of a single-family residence.




WM-19

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

                             June 30, Mar. 31, Dec. 31,  Sept.   June
                                                          30,     30,
                               2005    2005      2004    2004    2004
----------------------------------------------------------------------
Nonperforming Assets and
 Restructured Loans
  Nonaccrual loans(1):
     Loans secured by real
      estate:
        Home                   $  495  $  495  $  534  $  529  $  535
        Specialty mortgage
         finance(2)               692     734     682     617     585
----------------------------------------------------------------------
              Total home
               nonaccrual loans 1,187   1,229   1,216   1,146   1,120
        Home equity loans and
         lines of credit           67      74      66      50      48
        Home construction(3)       11      25      28      31      24
        Multi-family               15      15      12      23      20
        Other real estate         116     159     162     173     133
----------------------------------------------------------------------
              Total nonaccrual
               loans secured by
               real estate      1,396   1,502   1,484   1,423   1,345
     Consumer                       8       8       9      11       9
     Commercial business           59      59      41      37      42
----------------------------------------------------------------------
              Total nonaccrual
               loans held in
               portfolio        1,463   1,569   1,534   1,471   1,396
  Foreclosed assets               256     264     261     281     286
----------------------------------------------------------------------
              Total
               nonperforming
               assets          $1,719  $1,833  $1,795  $1,752  $1,682
              As a percentage
               of total assets   0.53%   0.57%   0.58%   0.61%   0.60%
  Restructured loans           $   25  $   27  $   34  $   38  $   79
----------------------------------------------------------------------
                 Total
                  nonperforming
                  assets and
                  restructured
                  loans        $1,744  $1,860  $1,829  $1,790  $1,761
======================================================================

(1) Excludes nonaccrual loans held for sale of $108 million at June
    30, 2005. Prior periods also reflect the exclusion of nonaccrual
    loans held for sale of $112 million, $76 million, $84 million and
    $99 million at March 31, 2005, December 31, 2004, September 30,
    2004 and June 30, 2004. 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 purchased subprime loan portfolios and certain
    mortgages originated by Long Beach Mortgage Company.

(3) Represents loans to builders for the purpose of financing the
    acquisition, development and construction of single-family
    residences for sale and construction loans made directly to the
    intended occupant of a single-family residence.

SOURCE: Washington Mutual

Washington Mutual
Media Contact -
Alan Gulick, 206-377-3637
alan.gulick@wamu.net
or
Investor Relations Contact -
Alan Magleby, 206-490-5182
alan.magleby@wamu.net