Annual Report 2003 Close Report
Financial Highlights
To Our Shareholders
Management's Discussion and Analysis
Financial Results
More About Us
The Future Matters
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Managements Discussion & Analysis

How We Performed
Off-balance Sheet Arrangements
Critical Accounting Policies
Controls and Procedures
How Our Businesses Performed

Personal and Commercial Banking
Wholesale Banking
Wealth Management
Corporate Management

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How We Performed

Efficiency ratio

The efficiency ratio measures the efficiency of operations. It’s calculated by taking expenses as a percentage of total revenue. The lower the percentage, the greater the efficiency.

On an operating cash basis, the Bank’s overall efficiency ratio weakened to 73.9% from 64.9% in 2002 and 64.5% in 2001. The Bank’s consolidated efficiency ratio is impacted by shifts in its business mix. The efficiency ratio is viewed as a more relevant measure for Personal and Commercial Banking, which had an efficiency ratio of 58.8% this year compared with 60.7% in 2002 and 61.5% in 2001. During fiscal 2003, the method used to calculate the efficiency ratio for Personal and Commercial Banking was simplified to no longer exclude the funding costs for the acquisition of Canada Trust. On a reported basis, the Bank’s overall efficiency ratio weakened to 83.3% from 75.8% in 2002 and 79.8% in 2001

Efficiency ratio (percent)