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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Wholesale Banking

A leading Canadian wholesale bank serving corporate, government and institutional clients around the world.

Overall business strategy

  • Invest in businesses that support the needs of core customers and provide opportunities for increasing economic profit.
  • Deliver full suite of capital market services for our established customer base in Canada.
  • Operate as a niche investment bank outside of Canada by leveraging product capabilities or sector expertise.
  • Selectively use credit to support high return relationships.
  • Reduce non-core corporate lending risk.

Challenges in 2003

  • Weak business environment with lower corporate financing and structuring activity.
  • Poor performance of the equity options business amid difficult market conditions led to a restructuring.
  • Responding proactively to stronger governance requirements from investors and regulators.

2003 Highlights

  • Improved Canadian investment banking rankings and market share.
  • Strengthened global product distribution capabilities.
  • Used credit more effectively by focusing on client profitability while strengthening the franchise.
  • Significantly reduced the non-core loan portfolio.
  • Reduced risk in the core loan portfolio by purchasing protection.
  • Reduced market risk levels.
  • Rationalized under-performing and non-strategic businesses.

Business outlook and focus for 2004

Credit and equity markets improved substantially in 2003 and we are optimistic that corporate activity levels will continue to recover in 2004. Our focus in 2004 is to:

  • Continue to increase market share in our Canadian franchise.
  • Continue to implement our niche product and sector based strategy globally.
  • Continue to enhance our risk and control infrastructure.
  • Continue to aggressively reduce the non-core loan portfolio.
  • Achieve return on average invested capital target of 18% to 20% in the core business.