Bank Dividend Yields - Compelling Versus Bonds & Equities

Scotia Capital, 27 September 2006� Bank dividend yields are near or at all time highs versus bonds, overall equity markets, Pipes/Utilities and Income Trusts; at the same time the bank group's one year beta has declined to the extremely low level of 0.39.� In our view, although bank share prices have done exceptionally well, they still do not fully reflect the magnitude of dividend increases and