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 decreased to

3.0

% as of June 19, 2026, and as a result thepublished regulatory minimum targets areset at

11.0

%,

12.5

%,

14.5

% and

24.5

%, 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 requires D-SIBsto hold a leverage ratio buffer of

0.50

% in addition to the existing minimumrequirement. 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 nine months ended July 31,2026.