NOTE 20: REGULATORY CAPITAL

The Bank manages its capital under guidelinesestablished by OSFI. The regulatorycapital guidelines measure capital in relationto credit, market, and operational

risks. The Bank has various capital policies,procedures, and controls which it utilizesto achieve its goals and objectives. TheBank is designated as a domestic

systemically important bank (D-SIB) anda global systemically important bank (G-SIB).

Canadian banks designated as D-SIBs are requiredto comply with OSFI’s minimum targets for risk-basedcapital and leverage ratios. The minimumtargets

include a D-SIB surcharge and Domestic StabilityBuffer (DSB) for Common Equity Tier 1 Capital, Tier 1 Capital, Total Capital and risk-based Total Loss

Absorbing Capacity (TLAC) ratios. TheDSB level was increased to

3.5

% as of November 1, 2023, and as a resultthe published regulatory minimum targetsare

set at

11.5

%,

13.0

%,

15.0

% and

25.0

%, respectively. The OSFI target includes the greater of the D-SIBor G-SIB surcharge, both of which arecurrently

1

% for the

Bank. The OSFI target for leverage requiresD-SIBs to hold a leverage ratio buffer of

0.50

% in addition to the existing minimum requirement.This sets the

published regulatory minimum targets for leverageand TLAC leverage ratios at

3.5

% and

7.25

%, respectively.

The Bank complied with all minimum risk-basedcapital and leverage ratio requirementsset by OSFI in the six months ended April 30,2026.