Financial Targets
We achieved one of our 2007 annual targets1. Excluding the impact of significant items2, all annual financial targets would have been achieved, reflecting the strength of our businesses.
Earnings per Share (EPS) Growth
See Earnings per Share Growth in the Value Measures (PDF, 211 KB) section of the MD&A
2007 Target: 5% to 10% EPS growth from a base of $5.11
2007 Performance: EPS of $4.38, down 14.3% from $5.11 a year ago. Excluding significant items2, EPS of $5.66, up 10.8%
2008 Target3:
10% to 15% EPS growth from a base of $5.24
Return on Equity (ROE)
See Return on Equity in the Value Measures (PDF, 211 KB) section of the MD&A
2007 Target: ROE of 18% to 20%
2007 Performance: ROE of 15.3%. Excluding significant items, ROE of 19.8%
2008 Target:
ROE of
18% to 20%
Provision for Credit Losses
See Provision for Credit Losses in the 2007 Financial Performance Review (PDF, 396 KB) section of the MD&A
2007 Target: Specific provision for credit losses of $400 million or less
2007 Performance: Specific provision for credit losses of $303 million
2008 Target:
Specific provision for credit losses of
$475 million or less
Tier 1 Capital Ratio4
See Enterprise-Wide Capital Management in the Financial Condition Review (PDF, 265 KB) section of the MD&A
2007 Performance: Tier 1 Capital Ratio of 9.51%
2008 Target:
Tier 1 Capital Ratio of at least
8.0%
Cash Productivity Ratio/Operating Leverage
See Productivity in the 2007 Financial Performance Review (PDF, 396 KB) section of the MD&A
2007 Target: Improve cash productivity ratio by 100 to 150 basis points
2007 Performance: Cash productivity ratio deteriorated 473 basis points. Excluding significant items, cash productivity ratio improved 150 basis points
2008 Operating Leverage5 Target:
Achieve operating leverage of at least
2%
(1) Our 2007 targets and performance measured on a basis consistent with our targets exclude the impact of changes in the general allowance for credit losses and restructuring charges.
(2) Results in 2007 excluding significant items further adjusts results to exclude the impact of commodities losses and charges related to deterioration in capital markets. Significant items are itemized in Earnings per Share Growth in the Value Measures (PDF, 211 KB) section of Management’s Discussion and Analysis.
(3) The base for our 2008 EPS and Operating Leverage targets exclude the impact of changes in the general allowance, restructuring charges and commodities losses.
(4) Our policy was to maintain a Tier 1 Capital Ratio of at least 8.0%. It was not a financial target in 2007.
(5) Operating leverage is the difference between the revenue and cash-based expense growth rates.
The data above are non-GAAP measures. Please see the Non-GAAP Measures in the 2007 Financial Performance Review (PDF, 396 KB) section of Management’s Discussion and Analysis.
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