Modest Writedowns, Market Overshoot, P/E Divergence

Scotia Capital, 19 November 2007� Canadian Banks pre announced write-downs for the fourth quarter of $2.2 billion (including NA estimate) or $1.3 billion after-tax representing 1.5% of common equity. These writedowns are modest and pale by comparison to global players. The banks also announced credit card gains of $1.1 billion after-tax offsetting the write-downs caused by the liquidity and