Cdn Banks Q2 2006 Review

Scotia Capital, 21 June 2006Bank Valuation Compelling Historic Low Beta Reiterate Overweight BanksEvent� Banks reported better-than-expected second quarter earnings with growth of 16% year-over-year. Bank earnings resilience and momentum has exceeded market expectations for the past three years.� Second quarter earnings were led by RY with 24% earnings growth followed by BMO 16%, and NA 14%. TD