Basel II Reduces RWA, but Challenges Tier 1 & Tier 2 Levels

Citigroup Global Markets, 20 March 2008� Potential Capital Issuances � Based on our analysis and likely obligations to extend various forms of lending facilities, we think BMO, BNS, and RY likely to issue some form of capital to shore up balance sheet and regulatory capital ratios.� On Average, Risk Weighted Assets Declined 5% � Implementation of Basel II reduced RWA by utilizing risk profile and