Consolidated Statements of Retained Earnings (Years ended December 31) (millions of Canadian dollars) 2004 2003 2002     (restated see note 2) (restated see note 2) Retained earnings, beginning of year 1,903  1,125  787  Net income 663  1,012  544  Adoption of new accounting policies -  -  34  Common share dividends (114) (90) (80) Purchase of common shares (note 9) (222) (122) (136) Redemption of preferred securities, net of tax (note 8) 23  -  -  Preferred security charges, net of tax (9) (22) (24) Retained earnings, end of year 2,244  1,903  1,125  See accompanying notes