Preview of Banks' Q2 2008 Earnings

Scotia Capital, 6 May 2008Overview� Banks begin reporting second quarter earnings May 27. We are trimming our 2008 and 2009 earnings estimates 2% and 3%, respectively, due to slowing economic activity and difficult capital markets. Return on equity is expected to remain in the 20% range.� We are expecting second quarter earnings to decline 2% YOY and 5% QOQ due to a drag from the appreciating