Managing International Risk Brian PorterEVP and Chief Risk Officer

3

Central Risk Framework and Strong Credit Culture

ReputationalRisk

Risk Policy

Senior Credit

Market Risk

Senior Executive Committees

Executive &Risk Committee

Board

Global Risk Management (GRM) Officer Limits

Local Banking Limits

4

0.0%

0.1%

0.2%

0.3%

0.4%

2004 2005 2006 2007

International Loan Loss Experience(% of Loans and BAs)

Stable Loss Experience

5

International Business Enhances Portfolio Diversification

Loans and Acceptances Outside of Canada

Q4/1999 Q4/2006

Europe U.S. Mexico/Latin America Caribbean Other

16%

45%9%

18%

12% 14%

24%

30%

20%

12%

6

Risk Framework Tailored for International

Centralized Local

Market Risk

Liquidity Risk for Major Currencies

Credit Risk

Asset Liability

Operational

Interest Rate

7

Experience

Deep expertisein specific regions

500 GRM employeeswith 15+ years of

experience

8

Industry Specialization

InfrastructureInfrastructure

PowerPowerTelecomTelecom Financial ServicesFinancial Services

Real Estate DevelopmentReal Estate Development MiningMining

EnergyEnergy

9

Effective Processes

Country Risk Framework

Standardized RatingMethodology

Country RiskRatings

Monitoring and Reporting

CountryLimits

Regional and CountryDiversification

Centralized Country Rating Team

10

Effective Deployment of People

Increased cross-training between GRM & regions

Increased GRM travel to regions

Increased GRM resources

Toronto

Mexico City

Lima

Bangkok

11

GRM Partners with the Business

Active in acquisitions and due diligence

Partners in integration

Business plan input

Endorsement of Consumer Finance strategy

12

A Sound Balance of Key Elements

Strong central framework

Right local balance

Right people and experience

Effective processes

GRM & International partnership

Sound balance between risk,

return and growth

Effective risk management for

International