Performance compared to objectives
	2002 objectives (1) 2002 performance (1) 2003 objectives Medium-term goals (3-5 year) 1 Valuation           Maintain top quartile valuation levels:           Share price/ book value: 1st quartile of TSX Banks & Trusts Index 1st quartile 1st quartile of S&P/TSX Composite Banks Index (2) N/A   Share price/earnings: 1st quartile of TSX Banks & Trusts Index 1st quartile (3) 1st quartile of S&P/TSX Composite Banks Index (2)     Share price growth: Above the TSX Banks & Trusts Index Above the index Above the S&P/TSX Composite Banks Index (2)   2 Earnings growth           Grow diluted earnings per share by: 5–10% (4) 27% (4) 13%, excluding goodwill amortization 10–15% 10–15% 3 ROE           Achieve an ROE of: 17–19% (4) 16.6% (4) 17–19% 20%+ 4 Revenue growth           Achieve revenue growth of: 7–10% 11% 5–8% 8–10% 5 Expense growth           Operating expenses versus operating revenues (5): Operating expense growth less than operating revenue growth Operating expense growth 8%, compared to operating revenue growth of 11%. Excluding recent U.S. acquisitions, operating expenses down 5% and operating revenues flat Operating expense growth less than operating revenue growth N/A 6 Portfolio quality           Achieve a ratio of specific provisions for credit losses to average loans, acceptances and reverse repurchase agreements (6): .45–.55% .51% .49% net of effect of credit derivatives (7) .45–.55% .35–.45% (was .30–.40%) 7 Capital management           Capital ratios (6): Maintain strong capital ratios 9.3% Tier 1 capital ratio 12.7% Total capital ratio versus medium-term goals of 8% and 11–12%, respectively Maintain strong capital ratios 8–8.5% Tier 1 capital (was 8%) 11–12% Total capital Dividend payout ratio (8) N/A 37% 35–45% 35–45% (was 30–40%) (1) Excluding special items in 2001 (for growth in earnings, revenues and expenses) detailed on page 27. (2) The TSX is discontinuing the TSX Banks & Trust Index in May 2003 and replacing it with the S&P/TSX Composite Banks Index. (3) Computed by us on October 31, 2002, based on analysts’ average core diluted earnings per share forward estimates for 2003. (4) With the adoption in Q1/02 of new accounting standards regarding business combinations in Canada and the U.S., goodwill is no longer amortized. Accordingly, 2002 objectives for earnings growth and ROE are no longer on a “cash” basis, as reported earnings are now very similar to “cash” earnings. (5) Operating expenses exclude special items, costs of Stock Appreciation Rights (SARs) and retention compensation associated with acquisitions, while operating revenues exclude special items. (6) Calculated based on our Canadian GAAP financial statements. (7) See discussion on page 46. (8) Common share dividends as a percentage of net income after preferred dividends.