Note 1 - Basis of Presentation
On February 27, 2024, the Board of Directors
authorized the publication of the Bank's unaudited interim
condensed consolidated financial statements (the consolidated
financial statements) for the quarter ended January 31,
2024.
The Bank's consolidated financial statements
are prepared in accordance with International Financial Reporting
Standards (IFRS), as issued by the International Accounting
Standards Board (IASB). The financial statements also comply with
section 308(4) of the Bank
Act (Canada), which states that, except as otherwise
specified by the Office of the Superintendent of Financial
Institutions (Canada) (OSFI), the consolidated financial statements
are to be prepared in accordance with IFRS. IFRS represent Canadian
generally accepted accounting principles (GAAP). None of the OSFI
accounting requirements are exceptions to IFRS.
These consolidated financial statements were
prepared in accordance with IAS 34 - Interim Financial Reporting and using
the same accounting policies as those described in Note 1 to the
audited annual consolidated financial statements for the year ended
October 31, 2023, except for the changes described in Note 2
to these consolidated financial statements, which have been applied
since November 1, 2023 upon the adoption of IFRS 17 - Insurance Contracts (IFRS 17).
Certain comparative amounts have been adjusted to reflect these
accounting policy changes.
Judgment,
Estimates and Assumptions
In preparing consolidated financial statements
in accordance with IFRS, management must exercise judgment and make
estimates and assumptions that affect the reporting date carrying
amounts of assets and liabilities, net income, and related
information. Some of the Bank's accounting policies,
such as measurement of expected credit losses (ECLs), require
particularly complex judgments and estimates. See Note 1 to the
audited annual consolidated financial statements for the year ended
October 31, 2023 for a summary of the most significant
estimation processes used to prepare the consolidated financial
statements in accordance with IFRS and for the valuation techniques
used to determine the carrying values and fair values of assets and
liabilities.
The geopolitical landscape (notably, the
Russia-Ukraine war and clashes between Hamas and Israel),
inflation, climate change, and higher interest rates continue to
create uncertainty. As a result, establishing reliable
estimates and applying judgment continue to be substantially
complex. The uncertainty regarding certain key inputs used in
measuring ECLs is described in Note 6 to these consolidated
financial statements.
Unless otherwise indicated, all amounts are
expressed in Canadian dollars, which is the Bank's functional and
presentation currency.
Note 2 - Accounting Policy
Changes
On November 1, 2023, the
Bank adopted IFRS 17 - Insurance Contracts (IFRS
17).
Insurance
Revenues
Insurance contracts, including reinsurance
contracts, are arrangements under which one party accepts
significant insurance risk by agreeing to compensate the
policyholder if a specified uncertain future event was to
occur.
The Bank uses the General
Measurement Model (GMM) to measure most of its insurance and
reinsurance contracts based on the present value of estimates of
the expected future cash flows necessary to fulfill the contracts,
including an adjustment for non-financial risk as well as the
contractual service margin (CSM), which represents the unearned
profits that will be recognized as services are provided in the
future. The Bank has chosen to apply the simplified approach (the
Premium Allocation Approach or PAA) to measure insurance contracts
with coverage periods of one year or less. The
insurance revenues from these contracts are recognized
systematically over the coverage period. For all measurement approaches, if contracts are expected to
be onerous, losses are recognized immediately in the Consolidated
Statement of Income.
Upon the issuance of a contract, an insurance
asset or liability and a reinsurance asset, if applicable, are
recognized in Other assets
and in Other liabilities
on the Consolidated Balance Sheet. Subsequent changes in the
carrying values of the insurance asset and liability and
reinsurance asset are recognized on a net basis in Non-interest income in the
Consolidated Statement of Income.
Insurance service expenses consist
mainly of incurred claims and other insurance service expenses,
amortization of insurance acquisition cash flows, and losses on
onerous contracts as well as reversals of such losses. Royalties
received from reinsurers are recognized in the Consolidated
Statement of Income as the Bank receives services under groups of
reinsurance contracts. Amounts recovered from reinsurers comprise
cash flows related to the claims or benefit experience of the
underlying contracts. All of these amounts are
recognized as a deduction from insurance revenues in Non-interest income in the
Consolidated Statement of Income.
Impacts of IFRS
17 Adoption
The IFRS 17 requirements have been applied
retrospectively by adjusting the Consolidated Balance Sheet
balances on the date of initial application, i.e., November 1,
2022. The impacts of IFRS 17 adoption have been recognized
through an adjustment to Retained
earnings as at November 1, 2022. The following
information presents the impacts on the Consolidated Balance Sheets
as at November 1, 2022 and as at
October 31, 2023:
Consolidated Balance Sheets
|
|
|
|
As
at
October
31, 2023
|
|
|
|
As
at
October
31, 2023
|
|
As
at
October
31, 2022
|
|
|
|
As
at
November
1, 2022
|
|
|
|
|
As
published
|
|
IFRS
17
adjustments
|
|
Adjusted
|
|
As
published
|
|
IFRS
17
adjustments
|
|
Adjusted
|
|
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other assets
|
|
7,889
|
|
(101)
|
|
7,788
|
|
5,958
|
|
(50)
|
|
5,908
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
7,423
|
|
(7)
|
|
7,416
|
|
6,361
|
|
(2)
|
|
6,359
|
|
|
Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retained earnings
|
|
16,744
|
|
(94)
|
|
16,650
|
|
15,140
|
|
(48)
|
|
15,092
|
|
As at October 31, 2023, the net CSM amount
related to the new recognition and measurement principles for
insurance and reinsurance assets and liabilities stood at $109
million ($89 million as at November 1, 2022).
The following information presents the impacts
on the Consolidated Statement of Income for the comparative
quarter:
Consolidated Statement of Income -
Increase (Decrease)
|
Quarter
ended January 31, 2023
|
|
|
Non-interest income - Insurance
revenues, net
|
|
(20)
|
|
|
Total revenues
|
|
(20)
|
|
|
Compensation and employee
benefits
|
|
(7)
|
|
|
Occupancy
|
|
(1)
|
|
|
Technology
|
|
(2)
|
|
|
Professional fees
|
|
(1)
|
|
|
Other
|
|
(2)
|
|
|
Non-interest expenses
|
|
(13)
|
|
|
Income before provisions for credit losses and income
taxes
|
|
(7)
|
|
|
Income before income taxes
|
|
(7)
|
|
|
Income taxes
|
|
(2)
|
|
|
Net
income
|
|
(5)
|
|
Note 3 - Fair Value of Financial
Instruments
Fair Value and Carrying Value of Financial Instruments by
Category
Financial assets and financial liabilities are
recognized on the Consolidated Balance Sheet at fair value or at
amortized cost in accordance with the categories set out in the
accounting framework for financial instruments.
|
|
|
|
|
|
|
|
|
|
|
|
|
As at January 31,
2024
|
|
|
|
|
|
|
|
Carrying
value
and fair
value
|
|
Carrying
value
|
|
Fair
value
|
|
Total carrying
value
|
Total
fair
value
|
|
|
|
|
|
|
|
Financial instruments
classified as at fair value through profit or
loss
|
|
Financial instruments
designated at fair value through profit or loss
|
|
Debt securities classified
as at fair value through other comprehensive
income
|
|
Equity
securities
designated
at
fair value
through
other
comprehensive
income
|
|
Financial instruments at
amortized cost, net
|
|
Financial instruments at
amortized cost, net
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits with financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
institutions
|
|
−
|
|
−
|
|
−
|
|
−
|
|
37,399
|
|
37,399
|
|
37,399
|
37,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
104,794
|
|
660
|
|
11,613
|
|
696
|
|
12,302
|
|
12,040
|
|
130,065
|
129,803
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities purchased under reverse
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and securities borrowed
|
|
−
|
|
−
|
|
−
|
|
−
|
|
12,926
|
|
12,926
|
|
12,926
|
12,926
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and acceptances, net of allowances
|
|
14,221
|
|
−
|
|
−
|
|
−
|
|
215,936
|
|
214,829
|
|
230,157
|
229,050
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
10,627
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
10,627
|
10,627
|
|
|
|
Other assets
|
|
1,845
|
|
−
|
|
−
|
|
−
|
|
3,087
|
|
3,087
|
|
4,932
|
4,932
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits(1)
|
|
−
|
|
21,372
|
|
|
|
|
|
278,725
|
|
278,697
|
|
300,097
|
300,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acceptances
|
|
−
|
|
−
|
|
|
|
|
|
5,633
|
|
5,633
|
|
5,633
|
5,633
|
|
|
|
Obligations related to securities
sold short
|
|
16,140
|
|
−
|
|
|
|
|
|
−
|
|
−
|
|
16,140
|
16,140
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations related to securities
sold under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
repurchase agreements
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities loaned
|
|
−
|
|
−
|
|
|
|
|
|
37,313
|
|
37,313
|
|
37,313
|
37,313
|
|
|
|
Derivative financial
instruments
|
|
17,030
|
|
−
|
|
|
|
|
|
−
|
|
−
|
|
17,030
|
17,030
|
|
|
|
Liabilities related to transferred
receivables
|
|
−
|
|
9,779
|
|
|
|
|
|
15,903
|
|
15,398
|
|
25,682
|
25,177
|
|
|
|
Other liabilities
|
|
−
|
|
−
|
|
|
|
|
|
3,836
|
|
3,834
|
|
3,836
|
3,834
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated debt
|
|
−
|
|
−
|
|
|
|
|
|
749
|
|
759
|
|
749
|
759
|
|
(1) Includes embedded derivative financial
instruments.
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
October 31, 2023(1)
|
|
|
|
|
|
|
|
Carrying
value and
fair
value
|
|
Carrying
value
|
|
Fair
value
|
|
Total
carrying value
|
Total
fair
value
|
|
|
|
|
|
|
|
Financial instruments classified as at fair value through
profit or loss
|
|
Financial instruments designated at fair value through profit
or loss
|
|
Debt
securities classified as at fair value through other comprehensive
income
|
|
Equity
securities
designated at
fair value
through
other
comprehensive
income
|
|
Financial instruments at amortized cost, net
|
|
Financial instruments at amortized cost, net
|
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits with financial
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
institutions
|
|
−
|
|
−
|
|
−
|
|
−
|
|
35,234
|
|
35,234
|
|
35,234
|
35,234
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
99,236
|
|
758
|
|
8,583
|
|
659
|
|
12,582
|
|
12,097
|
|
121,818
|
121,333
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities purchased under reverse
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
repurchase agreements
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and securities borrowed
|
|
−
|
|
−
|
|
−
|
|
−
|
|
11,260
|
|
11,260
|
|
11,260
|
11,260
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and acceptances, net of allowances
|
|
13,124
|
|
−
|
|
−
|
|
−
|
|
212,319
|
|
210,088
|
|
225,443
|
223,212
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
17,516
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
17,516
|
17,516
|
|
|
|
Other assets
|
|
73
|
|
−
|
|
−
|
|
−
|
|
4,285
|
|
4,285
|
|
4,358
|
4,358
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits(2)
|
|
−
|
|
18,275
|
|
|
|
|
|
269,898
|
|
269,490
|
|
288,173
|
287,765
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Acceptances
|
|
−
|
|
−
|
|
|
|
|
|
6,627
|
|
6,627
|
|
6,627
|
6,627
|
|
|
|
Obligations related to securities
sold short
|
|
13,660
|
|
−
|
|
|
|
|
|
−
|
|
−
|
|
13,660
|
13,660
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations related to securities
sold under
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
repurchase agreements
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities loaned
|
|
−
|
|
−
|
|
|
|
|
|
38,347
|
|
38,347
|
|
38,347
|
38,347
|
|
|
|
Derivative financial
instruments
|
|
19,888
|
|
−
|
|
|
|
|
|
−
|
|
−
|
|
19,888
|
19,888
|
|
|
|
Liabilities related to transferred
receivables
|
|
−
|
|
9,952
|
|
|
|
|
|
15,082
|
|
14,255
|
|
25,034
|
24,207
|
|
|
|
Other liabilities
|
|
−
|
|
−
|
|
|
|
|
|
3,497
|
|
3,494
|
|
3,497
|
3,494
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subordinated debt
|
|
−
|
|
−
|
|
|
|
|
|
748
|
|
727
|
|
748
|
727
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to these consolidated financial
statements.
(2) Includes embedded
derivative financial instruments.
Establishing Fair Value
The fair value of a financial instrument is the
price that would be received to sell a financial asset or paid to
transfer a financial liability in an orderly transaction in the
principal market at the measurement date under current market
conditions (i.e., an exit price).
Unadjusted quoted prices in active markets provide
the best evidence of fair value. When there is no quoted price in
an active market, the Bank applies other valuation techniques that
maximize the use of relevant observable inputs and that minimize
the use of unobservable inputs. Such valuation techniques include
the following: using information available from recent market
transactions, referring to the current fair value of a comparable
financial instrument, applying discounted cash flow analysis,
applying option pricing models, or relying on any other valuation
technique that is commonly used by market participants and has
proven to yield reliable estimates. Judgment is required when
applying many of the valuation techniques. The Bank's
valuations were based on its assessment of the conditions
prevailing as at January 31, 2024 and may change in the
future. Furthermore, there may be measurement uncertainty resulting
from the choice of valuation model used.
Fair value is established in accordance with a
rigorous control framework. The Bank has policies and procedures
that govern the process for determining fair value. The Bank's
valuation governance structure has remained largely unchanged from
that described in Note 3 to the audited annual consolidated
financial statements for the year ended October 31, 2023.
The valuation techniques used to determine the fair value of
financial assets and financial liabilities are also described in
this note, and no significant changes have been made to the
valuation techniques.
Note 3 - Fair Value of Financial
Instruments (cont.)
Financial Instruments Recorded at Fair Value on the
Consolidated Balance Sheet
Hierarchy of
Fair Value Measurements
IFRS establishes a fair value measurement
hierarchy that classifies the inputs used in financial instrument
fair value measurement techniques according to three levels. This
fair value hierarchy requires observable market inputs in an active
market to be used whenever such inputs exist. According to the
hierarchy, the highest level of inputs are unadjusted quoted prices
in active markets for identical instruments and the lowest level of
inputs are unobservable inputs. In some cases, the inputs used to
measure the fair value of a financial instrument might be
categorized within different levels of the fair value hierarchy. In
those cases, the fair value measurement is categorized in its
entirety in the same level of the fair value hierarchy as the
lowest level input that is significant to the entire measurement.
For additional information, see Note 3 to the audited annual
consolidated financial statements for the year ended
October 31, 2023.
Transfers of financial instruments between
Levels 1 and 2 and transfers to (or from) Level 3 are deemed to
have taken place at the beginning of the quarter in which the
transfer occurred. Significant transfers can occur between the fair
value hierarchy levels due to new information on inputs used to
determine fair value and the observable nature of those
inputs.
During the quarter ended January 31,
2024, $3 million in securities classified as at fair value
through profit or loss were transferred from Level 2 to Level 1 as
a result of changing market conditions ($6 million in
securities classified as at fair value through profit or loss
during the quarter ended January 31, 2023). Also, during the
quarter ended January 31, 2024, $2 million in
securities classified as at fair value through profit or loss were
transferred from Level 1 to Level 2 as a result of changing
market conditions ($4 million in securities classified as at
fair value through profit or loss and $2 million in obligations
related to securities sold short during
the quarter ended January 31, 2023). During
the quarters ended January 31, 2024 and 2023, financial
instruments were transferred to (or from) Level 3 due to changes in
the availability of observable market inputs as a result of
changing market conditions.
The following tables show financial instruments
recorded at fair value on the Consolidated Balance Sheet according
to the fair value hierarchy.
|
|
|
|
|
|
|
|
|
As at January 31,
2024
|
|
|
|
|
|
|
|
|
Level 1
|
|
Level 2
|
|
Level 3
|
|
Total financial
assets/liabilities at fair value
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
At fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities issued or guaranteed
by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian government
|
|
5,697
|
|
11,550
|
|
−
|
|
17,247
|
|
|
|
|
|
|
Canadian provincial and municipal
governments
|
|
−
|
|
8,539
|
|
−
|
|
8,539
|
|
|
|
|
|
|
U.S. Treasury, other U.S. agencies
and other foreign governments
|
|
1,602
|
|
1,274
|
|
−
|
|
2,876
|
|
|
|
|
|
Other debt securities
|
|
−
|
|
4,150
|
|
56
|
|
4,206
|
|
|
|
|
|
Equity securities
|
|
69,415
|
|
2,664
|
|
507
|
|
72,586
|
|
|
|
|
|
|
|
|
76,714
|
|
28,177
|
|
563
|
|
105,454
|
|
|
|
|
At fair value through other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities issued or guaranteed
by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian government
|
|
75
|
|
5,415
|
|
−
|
|
5,490
|
|
|
|
|
|
|
Canadian provincial and municipal
governments
|
|
−
|
|
2,529
|
|
−
|
|
2,529
|
|
|
|
|
|
|
U.S. Treasury, other U.S. agencies
and other foreign governments
|
|
2,235
|
|
159
|
|
−
|
|
2,394
|
|
|
|
|
|
Other debt securities
|
|
−
|
|
1,200
|
|
−
|
|
1,200
|
|
|
|
|
|
Equity securities
|
|
−
|
|
333
|
|
363
|
|
696
|
|
|
|
|
|
|
|
|
2,310
|
|
9,636
|
|
363
|
|
12,309
|
|
|
|
Loans
|
|
−
|
|
14,009
|
|
212
|
|
14,221
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
237
|
|
10,173
|
|
217
|
|
10,627
|
|
|
|
|
Other assets - Other items
|
|
−
|
|
1,772
|
|
73
|
|
1,845
|
|
|
|
|
79,261
|
|
63,767
|
|
1,428
|
|
144,456
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Deposits(1)
|
|
−
|
|
21,469
|
|
−
|
|
21,469
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations related to securities
sold short
|
|
11,422
|
|
4,718
|
|
−
|
|
16,140
|
|
|
|
|
Derivative financial
instruments
|
|
416
|
|
16,599
|
|
15
|
|
17,030
|
|
|
|
|
Liabilities related to transferred
receivables
|
|
−
|
|
9,779
|
|
−
|
|
9,779
|
|
|
|
|
11,838
|
|
52,565
|
|
15
|
|
64,418
|
|
(1) The amounts include the fair value of embedded derivative
financial instruments in deposits.
|
|
|
|
|
|
|
|
|
As at
October 31, 2023
|
|
|
|
|
|
|
|
|
Level
1
|
|
Level
2
|
|
Level
3
|
|
Total
financial
assets/liabilities
at fair
value
|
|
|
Financial assets
|
|
|
|
|
|
|
|
|
|
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
At fair value through profit or loss
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities issued or guaranteed
by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian government
|
|
6,403
|
|
10,872
|
|
−
|
|
17,275
|
|
|
|
|
|
|
Canadian provincial and municipal
governments
|
|
−
|
|
8,260
|
|
−
|
|
8,260
|
|
|
|
|
|
|
U.S. Treasury, other U.S. agencies
and other foreign governments
|
|
2,781
|
|
2,105
|
|
−
|
|
4,886
|
|
|
|
|
|
Other debt securities
|
|
−
|
|
3,450
|
|
65
|
|
3,515
|
|
|
|
|
|
Equity securities
|
|
65,018
|
|
554
|
|
486
|
|
66,058
|
|
|
|
|
|
|
|
|
74,202
|
|
25,241
|
|
551
|
|
99,994
|
|
|
|
|
At fair value through other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities issued or guaranteed
by
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian government
|
|
73
|
|
4,124
|
|
−
|
|
4,197
|
|
|
|
|
|
|
Canadian provincial and municipal
governments
|
|
−
|
|
1,938
|
|
−
|
|
1,938
|
|
|
|
|
|
|
U.S. Treasury, other U.S. agencies
and other foreign governments
|
|
904
|
|
254
|
|
−
|
|
1,158
|
|
|
|
|
|
Other debt securities
|
|
−
|
|
1,290
|
|
−
|
|
1,290
|
|
|
|
|
|
Equity securities
|
|
−
|
|
281
|
|
378
|
|
659
|
|
|
|
|
|
|
|
|
977
|
|
7,887
|
|
378
|
|
9,242
|
|
|
|
Loans
|
|
−
|
|
12,907
|
|
217
|
|
13,124
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Derivative financial
instruments
|
|
285
|
|
17,224
|
|
7
|
|
17,516
|
|
|
|
|
Other assets - Other items
|
|
−
|
|
−
|
|
73
|
|
73
|
|
|
|
|
|
|
|
75,464
|
|
63,259
|
|
1,226
|
|
139,949
|
|
|
Financial liabilities
|
|
|
|
|
|
|
|
|
|
|
|
Deposits(1)
|
|
−
|
|
18,134
|
|
−
|
|
18,134
|
|
|
|
Other
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations related to securities
sold short
|
|
8,335
|
|
5,325
|
|
−
|
|
13,660
|
|
|
|
|
Derivative financial
instruments
|
|
467
|
|
19,399
|
|
22
|
|
19,888
|
|
|
|
|
Liabilities related to transferred
receivables
|
|
−
|
|
9,952
|
|
−
|
|
9,952
|
|
|
|
|
|
|
|
8,802
|
|
52,810
|
|
22
|
|
61,634
|
|
(1) The amounts include the fair value of embedded derivative
financial instruments in deposits.
Financial Instruments Classified in Level 3
The Bank classifies financial instruments in
Level 3 when the valuation technique is based on at least one
significant input that is not observable in the markets. The Bank
maximizes the use of observable inputs to determine the fair value
of financial instruments.
For a description of the valuation techniques and
significant unobservable inputs used in determining the fair value
of financial instruments classified in Level 3, see Note 3 to
the audited annual consolidated financial statements for the year
ended October 31, 2023. For the quarter ended January 31,
2024, no significant change was made to the valuation techniques
and significant unobservable inputs used in determining fair
value.
Sensitivity Analysis
of Financial Instruments Classified in Level 3
The Bank performs sensitivity analyses for the fair
value measurements of Level 3 financial instruments, substituting
unobservable inputs with one or more reasonably possible
alternative assumptions. For additional information on how a change
in an unobservable input might affect the fair value measurements
of Level 3 financial instruments, see Note 3 to the audited annual
consolidated financial statements for the year ended
October 31, 2023. For the quarter ended January 31,
2024, there were no significant changes in the sensitivity analyses
of Level 3 financial instruments, except for
derivative financial instruments for which the reasonable fair
value range could result in a $58 million increase or decrease in
the net fair value recorded as at January 31, 2024 (a $16 million
increase or decrease as at October 31, 2023).
Note 3 - Fair Value of Financial
Instruments (cont.)
Change in the
Fair Value of Financial Instruments Classified in Level
3
The Bank may hedge the fair value of financial
instruments classified in the various levels through offsetting
hedge positions. Gains and losses on financial instruments
classified in Level 3 presented in the following tables do not
reflect the inverse gains and losses on financial instruments used
for economic hedging purposes that may have been classified in
Level 1 or Level 2 by the Bank. In addition, the Bank may hedge the
fair value of financial instruments classified in Level 3 using
other financial instruments classified in Level 3. The
effect of these hedges is not included in the net amount presented
in the following tables. The gains and losses presented
hereafter may comprise changes in fair value based on observable
and unobservable inputs.
|
|
|
|
|
|
|
|
|
Quarter ended
January 31, 2024
|
|
|
|
|
|
Securities
at fair
value
through
profit
or loss
|
|
Securities
at fair
value
through
other
comprehensive
income
|
|
Loans and
other
assets
|
|
Derivative
financial
instruments(1)
|
|
Deposits(2)
|
|
|
Fair value as at October 31,
2023
|
|
551
|
|
378
|
|
290
|
|
(15)
|
|
−
|
|
|
Total realized and unrealized
gains (losses) included in Net
income (3)
|
|
6
|
|
−
|
|
9
|
|
10
|
|
−
|
|
|
Total realized and unrealized
gains (losses) included in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
−
|
|
(6)
|
|
−
|
|
−
|
|
−
|
|
|
Purchases
|
|
14
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Sales
|
|
(8)
|
|
(9)
|
|
(2)
|
|
−
|
|
−
|
|
|
Issuances
|
|
−
|
|
−
|
|
5
|
|
−
|
|
−
|
|
|
Settlements and other
|
|
−
|
|
−
|
|
(17)
|
|
207
|
|
−
|
|
|
Financial instruments transferred
into Level 3
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Financial instruments transferred
out of Level 3
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Fair value as at January 31, 2024
|
|
563
|
|
363
|
|
285
|
|
202
|
|
−
|
|
|
Change in unrealized gains and
losses included in Net
income with respect
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to financial assets and financial
liabilities held as at January 31,
2024(4)
|
|
52
|
|
−
|
|
9
|
|
10
|
|
−
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended January 31, 2023
|
|
|
|
|
|
Securities
at fair
value
through
profit
or
loss
|
|
Securities
at fair
value
through
other
comprehensive
income
|
|
Loans
and
other
assets
|
|
Derivative
financial
instruments(1)
|
|
Deposits(2)
|
|
|
Fair value as at October 31,
2022
|
|
476
|
|
320
|
|
331
|
|
(17)
|
|
(8)
|
|
|
Total realized and unrealized
gains (losses) included in Net
income (5)
|
|
(7)
|
|
−
|
|
4
|
|
6
|
|
−
|
|
|
Total realized and unrealized
gains (losses) included in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other comprehensive income
|
|
−
|
|
6
|
|
−
|
|
−
|
|
−
|
|
|
Purchases
|
|
15
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Sales
|
|
(2)
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Issuances
|
|
−
|
|
−
|
|
7
|
|
−
|
|
−
|
|
|
Settlements and other
|
|
−
|
|
−
|
|
(17)
|
|
4
|
|
−
|
|
|
Financial instruments transferred
into Level 3
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Financial instruments transferred
out of Level 3
|
|
−
|
|
−
|
|
−
|
|
3
|
|
7
|
|
|
Fair value as at January 31, 2023
|
|
482
|
|
326
|
|
325
|
|
(4)
|
|
(1)
|
|
|
Change in unrealized gains and
losses included in Net
income with respect
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to financial assets and financial
liabilities held as at January 31,
2023(6)
|
|
(7)
|
|
−
|
|
4
|
|
6
|
|
−
|
|
(1)
The derivative financial instruments include assets and liabilities
presented on a net basis.
(2)
The amounts include the fair value of embedded derivative financial
instruments in deposits.
(3) Total gains (losses) included in Non-interest income was a gain of
$25 million.
(4) Total unrealized gains (losses) included in Non-interest income was an unrealized
gain of $71 million.
(5) Total gains (losses) included in Non-interest income was a gain of
$3 million.
(6) Total unrealized gains (losses) included in Non-interest income was an unrealized
gain of $3 million.
Note 4 - Financial Instruments Designated at Fair Value
Through Profit or Loss
The Bank chose to designate certain financial
instruments at fair value through profit or loss according to the
criteria presented in Note 1 to the audited annual consolidated
financial statements for the year ended October 31,
2023. Consistent with its risk management strategy and
in accordance with the fair value option, which permits the
designation if it eliminates or significantly reduces a measurement
or recognition inconsistency that would otherwise arise from
measuring financial assets and financial liabilities or recognizing
the gains and losses thereon on different bases, the Bank
designated certain securities, certain securities purchased under
reverse repurchase agreements, and certain liabilities related to
transferred receivables at fair value through profit or loss. The
fair value of liabilities related to transferred receivables does
not include credit risk, as the holders of these liabilities are
not exposed to the Bank's credit risk. The Bank also designated
certain deposits that include embedded derivative financial
instruments at fair value through profit or loss.
To determine a change in fair value arising
from a change in the credit risk of deposits designated at fair
value through profit or loss, the Bank calculates, at the beginning
of the period, the present value of the instrument's contractual
cash flows using the following rates: first, an observed discount
rate for similar securities that reflects the Bank's credit spread
and, then, a rate that excludes the Bank's credit spread. The
difference obtained between the two values is then compared to the
difference obtained using the same rates at the end of the
period.
Information about the financial assets and
financial liabilities designated at fair value through profit or
loss is provided in the following tables.
|
|
|
Carrying
value as
at
January 31,
2024
|
|
Unrealized
gains (losses)
for
the quarter
ended
January 31,
2024
|
|
Unrealized
gains (losses)
since
the initial
recognition
of the
instrument
|
|
|
Financial assets designated at fair value through profit or
loss
|
|
|
|
|
|
|
|
|
|
Securities
|
|
660
|
|
9
|
|
1
|
|
|
Financial liabilities designated at fair value through profit
or loss
|
|
|
|
|
|
|
|
|
|
Deposits(1)(2)
|
|
21,372
|
|
(1,841)
|
|
2,073
|
|
|
|
Liabilities related to transferred
receivables
|
|
9,779
|
|
(170)
|
|
382
|
|
|
.
|
|
31,151
|
|
(2,011)
|
|
2,455
|
|
|
|
|
Carrying
value as
at
January 31, 2023
|
|
Unrealized
gains
(losses) for
the
quarter ended
January 31, 2023
|
|
Unrealized
gains
(losses) since
the
initial recognition
of the
instrument
|
|
|
Financial assets designated at fair value through profit or
loss
|
|
|
|
|
|
|
|
|
|
Securities
|
|
892
|
|
9
|
|
2
|
|
|
|
Securities purchased under reverse
repurchase agreements
|
|
39
|
|
−
|
|
−
|
|
|
|
|
931
|
|
9
|
|
2
|
|
|
Financial liabilities designated at fair value through profit
or loss
|
|
|
|
|
|
|
|
|
|
Deposits(1)(2)
|
|
17,632
|
|
(1,188)
|
|
1,899
|
|
|
|
Liabilities related to transferred
receivables
|
|
9,608
|
|
(146)
|
|
424
|
|
|
|
|
27,240
|
|
(1,334)
|
|
2,323
|
|
(1) For the quarter ended January 31, 2024, the change in
the fair value of deposits designated at fair value through profit
or loss attributable to credit risk, and recorded in Other comprehensive income, resulted
in a loss of $228 million ($192 million loss for the quarter
ended January 31, 2023).
(2) The amount at maturity that the Bank will be contractually
required to pay to the holders of these deposits varies and will
differ from the reporting date fair value.
Note 5 - Securities
Credit Quality
As at January 31, 2024 and as at
October 31, 2023, securities at fair value through other
comprehensive income and securities at amortized cost were mainly
classified in Stage 1, with their credit quality falling
mostly in the "Excellent" category according to the Bank's internal
risk-rating categories. For additional information on the
reconciliation of allowances for credit losses, see Note 6 to
these consolidated financial statements.
Unrealized Gross Gains (Losses) on Securities at Fair Value
Through Other Comprehensive Income(1)
|
|
|
As at January 31,
2024
|
|
|
|
|
|
Amortized
cost
|
|
Unrealized gross
gains
|
|
Unrealized gross
losses
|
|
Carrying
value(2)
|
|
|
Securities issued or guaranteed
by
|
|
|
|
|
|
|
|
|
|
|
|
Canadian government
|
|
5,562
|
|
40
|
|
(112)
|
|
5,490
|
|
|
|
Canadian provincial and municipal
governments
|
|
2,585
|
|
13
|
|
(69)
|
|
2,529
|
|
|
|
U.S. Treasury, other U.S. agencies
and other foreign governments
|
|
2,394
|
|
32
|
|
(32)
|
|
2,394
|
|
|
Other debt securities
|
|
1,269
|
|
2
|
|
(71)
|
|
1,200
|
|
|
Equity securities
|
|
624
|
|
84
|
|
(12)
|
|
696
|
|
|
|
|
12,434
|
|
171
|
|
(296)
|
|
12,309
|
|
|
|
|
As at
October 31, 2023
|
|
|
|
|
|
Amortized
cost
|
|
Unrealized gross gains
|
|
Unrealized gross losses
|
|
Carrying
value(2)
|
|
|
Securities issued or guaranteed
by
|
|
|
|
|
|
|
|
|
|
|
|
Canadian government
|
|
4,406
|
|
1
|
|
(210)
|
|
4,197
|
|
|
|
Canadian provincial and municipal
governments
|
|
2,110
|
|
−
|
|
(172)
|
|
1,938
|
|
|
|
U.S. Treasury, other U.S. agencies
and other foreign governments
|
|
1,227
|
|
−
|
|
(69)
|
|
1,158
|
|
|
Other debt securities
|
|
1,423
|
|
−
|
|
(133)
|
|
1,290
|
|
|
Equity securities
|
|
616
|
|
66
|
|
(23)
|
|
659
|
|
|
|
|
9,782
|
|
67
|
|
(607)
|
|
9,242
|
|
(1)
Excludes the impact of hedging.
(2)
The allowances for credit losses on securities at
fair value through other comprehensive income (excluding the equity
securities), representing $3 million as at
January 31, 2024 ($3 million as at October 31,
2023), are reported in Other
comprehensive income. For additional information, see Note 6
to these consolidated financial statements.
Equity
Securities Designated at Fair Value Through Other Comprehensive
Income
The Bank designated certain equity securities,
the main business objective of which is to generate dividend
income, at fair value through other comprehensive income without
subsequent reclassification of gains and losses to net income.
During the quarter ended January 31, 2024, a dividend income
amount of $17 million was recognized for these investments
($7 million for the quarter ended January 31, 2023),
including a negligible amount for investments that were sold during
the quarter ended January 31, 2024 (a negligible amount for
investments that were sold during the quarter ended
January 31, 2023).
|
|
|
|
|
Quarter ended
January 31, 2024
|
|
Quarter
ended January 31, 2023
|
|
|
|
|
|
|
Equity securities of private
companies
|
|
Equity securities
of
public
companies
|
|
Total
|
|
Equity
securities of private companies
|
|
Equity
securities of
public
companies
|
|
Total
|
|
|
Fair value at beginning
|
|
378
|
|
281
|
|
659
|
|
320
|
|
236
|
|
556
|
|
|
|
Change in fair value
|
|
(6)
|
|
38
|
|
32
|
|
6
|
|
7
|
|
13
|
|
|
|
Designated at fair value
through
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
other comprehensive
income
|
|
−
|
|
51
|
|
51
|
|
−
|
|
25
|
|
25
|
|
|
|
Sales(1)
|
|
(9)
|
|
(37)
|
|
(46)
|
|
−
|
|
(21)
|
|
(21)
|
|
|
Fair value at end
|
|
363
|
|
333
|
|
696
|
|
326
|
|
247
|
|
573
|
|
(1) The Bank disposed of
private and public company equity securities for economic
reasons.
Securities at Amortized Cost
|
|
As at January 31,
2024
|
|
As at
October 31, 2023
|
|
|
Securities issued or guaranteed
by
|
|
|
|
|
|
|
Canadian government
|
6,541
|
|
6,172
|
|
|
|
Canadian provincial and municipal
governments
|
1,958
|
|
1,932
|
|
|
|
U.S. Treasury, other U.S. agencies
and other foreign governments
|
589
|
|
604
|
|
|
Other debt securities
|
3,217
|
|
3,878
|
|
|
Gross carrying value
|
12,305
|
|
12,586
|
|
|
Allowances for credit
losses
|
3
|
|
4
|
|
|
Carrying value
|
12,302
|
|
12,582
|
|
Gains (Losses) on Disposals of Securities at Amortized
Cost
During the quarter ended January 31,
2024, the Bank disposed of certain debt
securities measured at amortized cost (no disposal
during the quarter ended January 31, 2023). The
carrying value of these securities upon disposal was
$120 million for the quarter ended January 31, 2024, and
the Bank recognized negligible gains for the quarter ended
January 31, 2024 in Non-interest income - Gains (losses) on
non-trading securities, net in the Consolidated Statement of
Income.
Note 6 - Loans and Allowances for Credit
Losses
Determining and Measuring Expected Credit Losses
(ECL)
Determining
Expected Credit Losses
Expected credit losses are determined using a
three-stage impairment approach that is based on the change in the
credit quality of financial assets since initial
recognition.
Non-Impaired Loans
Stage
1
Financial assets that have experienced no
significant increase in credit risk between initial recognition and
the reporting date, and for which 12-month expected credit losses
are recorded at the reporting date, are classified in
Stage 1.
Stage
2
Financial assets that have experienced a
significant increase in credit risk between initial recognition and
the reporting date, and for which lifetime expected credit losses
are recorded at the reporting date, are classified in
Stage 2.
Impaired Loans
Stage
3
Financial assets for which there is objective
evidence of impairment, for which one or more events have had a
detrimental impact on the estimated future cash flows of these
financial assets at the reporting date, and for which lifetime
expected credit losses are recorded, are classified in
Stage 3.
POCI
Financial assets that are credit-impaired when
purchased or originated (POCI) are classified in the POCI
category.
For additional information, see Notes 1 and
7 to the audited annual consolidated financial
statements for the year ended October 31, 2023.
Credit Quality of Loans
The following tables present the gross carrying
amounts of loans as at January 31,
2024 and as at October 31, 2023, according to credit
quality and ECL impairment stage of each loan category at amortized
cost, and according to credit quality for loans at fair value
through profit or loss. For additional information on credit
quality according to the Internal Ratings-Based (IRB) categories,
see the Internal Default Risk Ratings table on page 77 in the
Credit Risk section of the 2023
Annual Report.
Note 6 - Loans and Allowances for
Credit Losses (cont.)
|
|
|
|
|
|
|
|
|
|
As at January 31,
2024
|
|
|
|
|
|
Non-impaired
loans
|
|
Impaired
loans
|
|
Loans at fair
value
through profit or
loss(1)
|
|
Total
|
|
|
|
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
POCI
|
|
|
|
|
Residential mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
|
30,911
|
|
18
|
|
−
|
|
−
|
|
−
|
|
30,929
|
|
|
|
Good
|
|
16,250
|
|
290
|
|
−
|
|
−
|
|
−
|
|
16,540
|
|
|
|
Satisfactory
|
|
12,095
|
|
4,384
|
|
−
|
|
−
|
|
−
|
|
16,479
|
|
|
|
Special mention
|
|
271
|
|
753
|
|
−
|
|
−
|
|
−
|
|
1,024
|
|
|
|
Substandard
|
|
73
|
|
265
|
|
−
|
|
−
|
|
−
|
|
338
|
|
|
|
Default
|
|
−
|
|
−
|
|
78
|
|
−
|
|
−
|
|
78
|
|
|
IRB Approach
|
|
59,600
|
|
5,710
|
|
78
|
|
−
|
|
−
|
|
65,388
|
|
|
Standardized Approach
|
|
9,820
|
|
173
|
|
326
|
|
281
|
|
12,536
|
|
23,136
|
|
|
Gross carrying amount
|
|
69,420
|
|
5,883
|
|
404
|
|
281
|
|
12,536
|
|
88,524
|
|
|
Allowances for credit
losses(2)
|
|
71
|
|
91
|
|
96
|
|
(92)
|
|
−
|
|
166
|
|
|
Carrying amount
|
|
69,349
|
|
5,792
|
|
308
|
|
373
|
|
12,536
|
|
88,358
|
|
|
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
|
21,055
|
|
229
|
|
−
|
|
−
|
|
−
|
|
21,284
|
|
|
|
Good
|
|
7,201
|
|
1,745
|
|
−
|
|
−
|
|
−
|
|
8,946
|
|
|
|
Satisfactory
|
|
6,385
|
|
2,272
|
|
−
|
|
−
|
|
−
|
|
8,657
|
|
|
|
Special mention
|
|
1,907
|
|
840
|
|
−
|
|
−
|
|
−
|
|
2,747
|
|
|
|
Substandard
|
|
33
|
|
237
|
|
−
|
|
−
|
|
−
|
|
270
|
|
|
|
Default
|
|
−
|
|
−
|
|
180
|
|
−
|
|
−
|
|
180
|
|
|
IRB Approach
|
|
36,581
|
|
5,323
|
|
180
|
|
−
|
|
−
|
|
42,084
|
|
|
Standardized Approach
|
|
3,894
|
|
73
|
|
80
|
|
176
|
|
−
|
|
4,223
|
|
|
Gross carrying amount
|
|
40,475
|
|
5,396
|
|
260
|
|
176
|
|
−
|
|
46,307
|
|
|
Allowances for credit
losses(2)
|
|
92
|
|
111
|
|
103
|
|
(13)
|
|
−
|
|
293
|
|
|
Carrying amount
|
|
40,383
|
|
5,285
|
|
157
|
|
189
|
|
−
|
|
46,014
|
|
|
Credit card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
|
570
|
|
−
|
|
−
|
|
−
|
|
−
|
|
570
|
|
|
|
Good
|
|
353
|
|
1
|
|
−
|
|
−
|
|
−
|
|
354
|
|
|
|
Satisfactory
|
|
765
|
|
67
|
|
−
|
|
−
|
|
−
|
|
832
|
|
|
|
Special mention
|
|
314
|
|
220
|
|
−
|
|
−
|
|
−
|
|
534
|
|
|
|
Substandard
|
|
37
|
|
92
|
|
−
|
|
−
|
|
−
|
|
129
|
|
|
|
Default
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
IRB Approach
|
|
2,039
|
|
380
|
|
−
|
|
−
|
|
−
|
|
2,419
|
|
|
Standardized Approach
|
|
122
|
|
−
|
|
−
|
|
−
|
|
−
|
|
122
|
|
|
Gross carrying amount
|
|
2,161
|
|
380
|
|
−
|
|
−
|
|
−
|
|
2,541
|
|
|
Allowances for credit
losses(2)
|
|
34
|
|
110
|
|
−
|
|
−
|
|
−
|
|
144
|
|
|
Carrying amount
|
|
2,127
|
|
270
|
|
−
|
|
−
|
|
−
|
|
2,397
|
|
|
Business and government(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
|
7,842
|
|
−
|
|
−
|
|
−
|
|
1,426
|
|
9,268
|
|
|
|
Good
|
|
29,248
|
|
1
|
|
−
|
|
−
|
|
53
|
|
29,302
|
|
|
|
Satisfactory
|
|
31,294
|
|
9,848
|
|
−
|
|
−
|
|
139
|
|
41,281
|
|
|
|
Special mention
|
|
178
|
|
1,944
|
|
−
|
|
−
|
|
−
|
|
2,122
|
|
|
|
Substandard
|
|
173
|
|
342
|
|
−
|
|
2
|
|
−
|
|
517
|
|
|
|
Default
|
|
−
|
|
−
|
|
371
|
|
−
|
|
−
|
|
371
|
|
|
IRB Approach
|
|
68,735
|
|
12,135
|
|
371
|
|
2
|
|
1,618
|
|
82,861
|
|
|
Standardized Approach
|
|
10,927
|
|
36
|
|
68
|
|
37
|
|
67
|
|
11,135
|
|
|
Gross carrying amount
|
|
79,662
|
|
12,171
|
|
439
|
|
39
|
|
1,685
|
|
93,996
|
|
|
Allowances for credit
losses(2)
|
|
193
|
|
186
|
|
227
|
|
2
|
|
−
|
|
608
|
|
|
Carrying amount
|
|
79,469
|
|
11,985
|
|
212
|
|
37
|
|
1,685
|
|
93,388
|
|
|
Total loans and acceptances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross carrying amount
|
|
191,718
|
|
23,830
|
|
1,103
|
|
496
|
|
14,221
|
|
231,368
|
|
|
Allowances for credit
losses(2)
|
|
390
|
|
498
|
|
426
|
|
(103)
|
|
−
|
|
1,211
|
|
|
Carrying amount
|
|
191,328
|
|
23,332
|
|
677
|
|
599
|
|
14,221
|
|
230,157
|
|
(1)
Not subject to expected credit losses.
(2)
The allowances for credit losses do not include
the amounts related to undrawn commitments reported in the
Other liabilities item of
the Consolidated Balance Sheet.
(3)
Includes customers' liability under
acceptances.
|
|
|
|
|
|
|
|
|
|
As at
October 31, 2023
|
|
|
|
|
|
Non-impaired loans
|
|
Impaired
loans
|
|
Loans at
fair value
through
profit or loss(1)
|
|
Total
|
|
|
|
|
|
Stage
1
|
|
Stage
2
|
|
Stage
3
|
|
POCI
|
|
|
|
|
Residential mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
|
30,075
|
|
13
|
|
−
|
|
−
|
|
−
|
|
30,088
|
|
|
|
Good
|
|
17,008
|
|
247
|
|
−
|
|
−
|
|
−
|
|
17,255
|
|
|
|
Satisfactory
|
|
11,795
|
|
4,118
|
|
−
|
|
−
|
|
−
|
|
15,913
|
|
|
|
Special mention
|
|
318
|
|
773
|
|
−
|
|
−
|
|
−
|
|
1,091
|
|
|
|
Substandard
|
|
61
|
|
252
|
|
−
|
|
−
|
|
−
|
|
313
|
|
|
|
Default
|
|
−
|
|
−
|
|
66
|
|
−
|
|
−
|
|
66
|
|
|
AIRB Approach
|
|
59,257
|
|
5,403
|
|
66
|
|
−
|
|
−
|
|
64,726
|
|
|
Standardized Approach
|
|
9,540
|
|
218
|
|
287
|
|
304
|
|
11,772
|
|
22,121
|
|
|
Gross carrying amount
|
|
68,797
|
|
5,621
|
|
353
|
|
304
|
|
11,772
|
|
86,847
|
|
|
Allowances for credit
losses(2)
|
|
69
|
|
93
|
|
87
|
|
(95)
|
|
−
|
|
154
|
|
|
Carrying amount
|
|
68,728
|
|
5,528
|
|
266
|
|
399
|
|
11,772
|
|
86,693
|
|
|
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
|
21,338
|
|
120
|
|
−
|
|
−
|
|
−
|
|
21,458
|
|
|
|
Good
|
|
7,360
|
|
1,665
|
|
−
|
|
−
|
|
−
|
|
9,025
|
|
|
|
Satisfactory
|
|
6,497
|
|
2,240
|
|
−
|
|
−
|
|
−
|
|
8,737
|
|
|
|
Special mention
|
|
1,849
|
|
810
|
|
−
|
|
−
|
|
−
|
|
2,659
|
|
|
|
Substandard
|
|
29
|
|
224
|
|
−
|
|
−
|
|
−
|
|
253
|
|
|
|
Default
|
|
−
|
|
−
|
|
156
|
|
−
|
|
−
|
|
156
|
|
|
AIRB Approach
|
|
37,073
|
|
5,059
|
|
156
|
|
−
|
|
−
|
|
42,288
|
|
|
Standardized Approach
|
|
3,713
|
|
79
|
|
71
|
|
207
|
|
−
|
|
4,070
|
|
|
Gross carrying amount
|
|
40,786
|
|
5,138
|
|
227
|
|
207
|
|
−
|
|
46,358
|
|
|
Allowances for credit
losses(2)
|
|
91
|
|
108
|
|
87
|
|
(15)
|
|
−
|
|
271
|
|
|
Carrying amount
|
|
40,695
|
|
5,030
|
|
140
|
|
222
|
|
−
|
|
46,087
|
|
|
Credit card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
|
641
|
|
−
|
|
−
|
|
−
|
|
−
|
|
641
|
|
|
|
Good
|
|
380
|
|
1
|
|
−
|
|
−
|
|
−
|
|
381
|
|
|
|
Satisfactory
|
|
752
|
|
68
|
|
−
|
|
−
|
|
−
|
|
820
|
|
|
|
Special mention
|
|
304
|
|
210
|
|
−
|
|
−
|
|
−
|
|
514
|
|
|
|
Substandard
|
|
37
|
|
86
|
|
−
|
|
−
|
|
−
|
|
123
|
|
|
|
Default
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
AIRB Approach
|
|
2,114
|
|
365
|
|
−
|
|
−
|
|
−
|
|
2,479
|
|
|
Standardized Approach
|
|
124
|
|
−
|
|
−
|
|
−
|
|
−
|
|
124
|
|
|
Gross carrying amount
|
|
2,238
|
|
365
|
|
−
|
|
−
|
|
−
|
|
2,603
|
|
|
Allowances for credit
losses(2)
|
|
33
|
|
106
|
|
−
|
|
−
|
|
−
|
|
139
|
|
|
Carrying amount
|
|
2,205
|
|
259
|
|
−
|
|
−
|
|
−
|
|
2,464
|
|
|
Business and government(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
|
7,785
|
|
−
|
|
−
|
|
−
|
|
1,113
|
|
8,898
|
|
|
|
Good
|
|
28,525
|
|
16
|
|
−
|
|
−
|
|
53
|
|
28,594
|
|
|
|
Satisfactory
|
|
32,095
|
|
8,400
|
|
−
|
|
2
|
|
140
|
|
40,637
|
|
|
|
Special mention
|
|
215
|
|
1,790
|
|
−
|
|
−
|
|
−
|
|
2,005
|
|
|
|
Substandard
|
|
27
|
|
290
|
|
−
|
|
−
|
|
−
|
|
317
|
|
|
|
Default
|
|
−
|
|
−
|
|
397
|
|
−
|
|
−
|
|
397
|
|
|
AIRB Approach
|
|
68,647
|
|
10,496
|
|
397
|
|
2
|
|
1,306
|
|
80,848
|
|
|
Standardized Approach
|
|
9,774
|
|
57
|
|
47
|
|
47
|
|
46
|
|
9,971
|
|
|
Gross carrying amount
|
|
78,421
|
|
10,553
|
|
444
|
|
49
|
|
1,352
|
|
90,819
|
|
|
Allowances for credit
losses(2)
|
|
182
|
|
194
|
|
244
|
|
−
|
|
−
|
|
620
|
|
|
Carrying amount
|
|
78,239
|
|
10,359
|
|
200
|
|
49
|
|
1,352
|
|
90,199
|
|
|
Total loans and acceptances
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross carrying amount
|
|
190,242
|
|
21,677
|
|
1,024
|
|
560
|
|
13,124
|
|
226,627
|
|
|
Allowances for credit
losses(2)
|
|
375
|
|
501
|
|
418
|
|
(110)
|
|
−
|
|
1,184
|
|
|
Carrying amount
|
|
189,867
|
|
21,176
|
|
606
|
|
670
|
|
13,124
|
|
225,443
|
|
(1)
Not subject to expected credit losses.
(2)
The allowances for credit losses do not include
the amounts related to undrawn commitments reported in the
Other liabilities item of
the Consolidated Balance Sheet.
(3)
Includes customers' liability under
acceptances.
Note 6 - Loans and Allowances for
Credit Losses (cont.)
The following table presents the credit risk
exposures of off-balance-sheet commitments as at January 31,
2024 and as at October 31, 2023 according to credit quality
and ECL impairment stage.
|
|
|
|
|
As at January 31,
2024
|
|
|
|
|
|
As at
October 31, 2023
|
|
|
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
Total
|
|
Stage
1
|
|
Stage
2
|
|
Stage
3
|
|
Total
|
|
|
Off-balance-sheet commitments(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
16,873
|
|
94
|
|
−
|
|
16,967
|
|
16,648
|
|
67
|
|
−
|
|
16,715
|
|
|
|
Good
|
3,540
|
|
464
|
|
−
|
|
4,004
|
|
3,485
|
|
467
|
|
−
|
|
3,952
|
|
|
|
Satisfactory
|
1,283
|
|
290
|
|
−
|
|
1,573
|
|
1,268
|
|
285
|
|
−
|
|
1,553
|
|
|
|
Special mention
|
218
|
|
94
|
|
−
|
|
312
|
|
239
|
|
93
|
|
−
|
|
332
|
|
|
|
Substandard
|
16
|
|
16
|
|
−
|
|
32
|
|
17
|
|
15
|
|
−
|
|
32
|
|
|
|
Default
|
−
|
|
−
|
|
2
|
|
2
|
|
−
|
|
−
|
|
2
|
|
2
|
|
|
Non-retail
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Excellent
|
13,863
|
|
−
|
|
−
|
|
13,863
|
|
14,117
|
|
−
|
|
−
|
|
14,117
|
|
|
|
Good
|
21,604
|
|
−
|
|
−
|
|
21,604
|
|
21,082
|
|
−
|
|
−
|
|
21,082
|
|
|
|
Satisfactory
|
12,655
|
|
4,871
|
|
−
|
|
17,526
|
|
12,258
|
|
4,354
|
|
−
|
|
16,612
|
|
|
|
Special mention
|
16
|
|
270
|
|
−
|
|
286
|
|
17
|
|
248
|
|
−
|
|
265
|
|
|
|
Substandard
|
9
|
|
517
|
|
−
|
|
526
|
|
19
|
|
33
|
|
−
|
|
52
|
|
|
|
Default
|
−
|
|
−
|
|
11
|
|
11
|
|
−
|
|
−
|
|
10
|
|
10
|
|
|
IRB Approach
|
70,077
|
|
6,616
|
|
13
|
|
76,706
|
|
69,150
|
|
5,562
|
|
12
|
|
74,724
|
|
|
Standardized Approach
|
18,425
|
|
−
|
|
−
|
|
18,425
|
|
18,172
|
|
−
|
|
−
|
|
18,172
|
|
|
Total exposure
|
88,502
|
|
6,616
|
|
13
|
|
95,131
|
|
87,322
|
|
5,562
|
|
12
|
|
92,896
|
|
|
Allowances for credit
losses
|
133
|
|
59
|
|
−
|
|
192
|
|
116
|
|
60
|
|
−
|
|
176
|
|
|
Total exposure, net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
of allowances
|
88,369
|
|
6,557
|
|
13
|
|
94,939
|
|
87,206
|
|
5,502
|
|
12
|
|
92,720
|
|
(1) Represent letters of guarantee and documentary letters of
credit, undrawn commitments, and backstop liquidity and credit
enhancement facilities.
Loans Past Due But Not
Impaired(1)
|
|
|
|
As at January 31,
2024
|
|
|
|
|
|
As at
October 31, 2023
|
|
|
|
|
|
Residential
mortgage
|
|
Personal
|
|
Credit
card
|
|
Business
and
government(2)
|
|
Residential
mortgage
|
|
Personal
|
|
Credit
card
|
|
Business
and
government(2)
|
|
|
Past due but not
impaired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
31 to 60 days
|
|
148
|
|
97
|
|
28
|
|
41
|
|
139
|
|
102
|
|
27
|
|
38
|
|
|
|
61 to 90 days
|
|
63
|
|
55
|
|
15
|
|
22
|
|
58
|
|
65
|
|
14
|
|
21
|
|
|
|
Over 90
days(3)
|
|
−
|
|
−
|
|
32
|
|
−
|
|
−
|
|
−
|
|
30
|
|
−
|
|
|
|
|
211
|
|
152
|
|
75
|
|
63
|
|
197
|
|
167
|
|
71
|
|
59
|
|
(1) Loans less than 31 days past due are not presented as they
are not considered past due from an administrative
standpoint.
(2) Includes customers'
liability under acceptances.
(3) All loans more than
90 days past due, except for credit card receivables, are
considered impaired (Stage 3).
Impaired Loans
|
|
|
|
As at January 31,
2024
|
|
As at
October 31, 2023
|
|
|
|
|
Gross
|
|
Allowances
for
credit
losses
|
|
Net
|
|
Gross
|
|
Allowances for
credit
losses
|
|
Net
|
|
|
Loans - Stage 3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
404
|
|
96
|
|
308
|
|
353
|
|
87
|
|
266
|
|
|
|
Personal
|
260
|
|
103
|
|
157
|
|
227
|
|
87
|
|
140
|
|
|
|
Credit
card(1)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
|
Business and
government(2)
|
439
|
|
227
|
|
212
|
|
444
|
|
244
|
|
200
|
|
|
|
1,103
|
|
426
|
|
677
|
|
1,024
|
|
418
|
|
606
|
|
|
Loans - POCI
|
496
|
|
(103)
|
|
599
|
|
560
|
|
(110)
|
|
670
|
|
|
|
|
1,599
|
|
323
|
|
1,276
|
|
1,584
|
|
308
|
|
1,276
|
|
(1)
Credit card receivables are considered impaired,
at the latest, when payment is 180 days past due, and they are
written off at that time.
(2)
Includes customers' liability under
acceptances.
Allowances for Credit Losses
The following tables present a reconciliation of
the allowances for credit losses by Consolidated Balance Sheet item
and by type of off-balance-sheet commitment.
|
|
|
|
|
|
|
|
|
|
|
Quarter ended
January 31, 2024
|
|
|
|
|
Allowances
for
credit losses as
at
October 31,
2023
|
|
Provisions
for
credit
losses
|
|
Write-offs(1)
|
|
Disposals
|
|
Recoveries
and other
|
|
Allowances
for
credit losses as
at
January 31,
2024
|
|
|
Balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits with financial
institutions(2)(3)
|
10
|
|
(3)
|
|
−
|
|
−
|
|
−
|
|
7
|
|
|
Securities(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At fair value through other
comprehensive income(4)
|
3
|
|
−
|
|
−
|
|
−
|
|
−
|
|
3
|
|
|
|
At amortized
cost(2)
|
4
|
|
(1)
|
|
−
|
|
−
|
|
−
|
|
3
|
|
|
Securities purchased under reverse
repurchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
agreements and securities
borrowed(2)(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Loans(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
154
|
|
15
|
|
(1)
|
|
−
|
|
(2)
|
|
166
|
|
|
|
Personal
|
271
|
|
44
|
|
(23)
|
|
−
|
|
1
|
|
293
|
|
|
|
Credit card
|
139
|
|
27
|
|
(26)
|
|
−
|
|
4
|
|
144
|
|
|
|
Business and government
|
567
|
|
23
|
|
(44)
|
|
−
|
|
10
|
|
556
|
|
|
|
Customers' liability under
acceptances
|
53
|
|
(1)
|
|
−
|
|
−
|
|
−
|
|
52
|
|
|
|
|
1,184
|
|
108
|
|
(94)
|
|
−
|
|
13
|
|
1,211
|
|
|
Other assets(2)(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Off-balance-sheet commitments(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Letters of guarantee and
documentary letters of credit
|
16
|
|
3
|
|
−
|
|
−
|
|
−
|
|
19
|
|
|
Undrawn commitments
|
152
|
|
14
|
|
−
|
|
−
|
|
−
|
|
166
|
|
|
Backstop liquidity and credit
enhancement facilities
|
8
|
|
(1)
|
|
−
|
|
−
|
|
−
|
|
7
|
|
|
|
|
176
|
|
16
|
|
−
|
|
−
|
|
−
|
|
192
|
|
|
|
1,377
|
|
120
|
|
(94)
|
|
−
|
|
13
|
|
1,416
|
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended January 31, 2023
|
|
|
|
|
Allowances for
credit
losses as at
October 31, 2022
|
|
Provisions for
credit
losses
|
|
Write-offs(1)
|
|
Disposals
|
|
Recoveries
and
other
|
|
Allowances for
credit
losses as at
January 31, 2023
|
|
|
Balance sheet
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and deposits with financial
institutions(2)(3)
|
5
|
|
−
|
|
−
|
|
−
|
|
−
|
|
5
|
|
|
Securities(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
At fair value through other
comprehensive income(4)
|
2
|
|
(1)
|
|
−
|
|
−
|
|
−
|
|
1
|
|
|
|
At amortized
cost(2)
|
7
|
|
1
|
|
−
|
|
−
|
|
−
|
|
8
|
|
|
Securities purchased under reverse
repurchase
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
agreements and securities
borrowed(2)(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Loans(5)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Residential mortgage
|
118
|
|
19
|
|
(1)
|
|
−
|
|
(1)
|
|
135
|
|
|
|
Personal
|
239
|
|
31
|
|
(16)
|
|
−
|
|
3
|
|
257
|
|
|
|
Credit card
|
126
|
|
25
|
|
(18)
|
|
−
|
|
3
|
|
136
|
|
|
|
Business and government
|
418
|
|
19
|
|
(5)
|
|
−
|
|
−
|
|
432
|
|
|
|
Customers' liability under
acceptances
|
54
|
|
(7)
|
|
−
|
|
−
|
|
−
|
|
47
|
|
|
|
|
955
|
|
87
|
|
(40)
|
|
−
|
|
5
|
|
1,007
|
|
|
Other assets(2)(3)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Off-balance-sheet commitments(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Letters of guarantee and
documentary letters of credit
|
13
|
|
−
|
|
−
|
|
−
|
|
−
|
|
13
|
|
|
Undrawn commitments
|
143
|
|
(1)
|
|
−
|
|
−
|
|
−
|
|
142
|
|
|
Backstop liquidity and credit
enhancement facilities
|
6
|
|
−
|
|
−
|
|
−
|
|
−
|
|
6
|
|
|
|
|
162
|
|
(1)
|
|
−
|
|
−
|
|
−
|
|
161
|
|
|
|
1,131
|
|
86
|
|
(40)
|
|
−
|
|
5
|
|
1,182
|
|
(1) The
contractual amount outstanding on financial assets that were
written off during the quarter ended January 31, 2024 and that
are still subject to enforcement activity was $35 million
($25 million for the quarter ended January 31,
2023).
(2) These
financial assets are presented net of the allowances for credit
losses on the Consolidated Balance Sheet.
(3) As at
January 31, 2024 and 2023, these financial assets were mainly
classified in Stage 1 and their credit quality fell mostly within
the Excellent
category.
(4) The
allowances for credit losses are reported in the Accumulated other comprehensive income
item of the Consolidated Balance Sheet.
(5) The
allowances for credit losses are reported in the Allowances for credit losses item of
the Consolidated Balance Sheet.
(6) The
allowances for credit losses are reported in the Other liabilities item of the
Consolidated Balance Sheet.
Note 6 - Loans and Allowances for
Credit Losses (cont.)
The following tables present a reconciliation of
allowances for credit losses for each loan category at amortized
cost according to ECL impairment stage.
|
|
|
|
|
|
Quarter ended
January 31, 2024
|
|
|
|
|
|
Quarter
ended January 31, 2023
|
|
|
|
|
|
Allowances
for
credit losses
on
non-impaired
loans
|
|
Allowances
for
credit losses
on
impaired
loans
|
|
Total
|
|
Allowances for
credit
losses on
non-impaired loans
|
|
Allowances for
credit
losses on
impaired
loans
|
|
Total
|
|
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
POCI(1)
|
|
|
Stage
1
|
|
Stage
2
|
|
Stage
3
|
|
POCI(1)
|
|
|
|
Residential mortgage
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
|
69
|
|
93
|
|
87
|
|
(95)
|
|
154
|
|
53
|
|
80
|
|
61
|
|
(76)
|
|
118
|
|
|
|
Originations or
purchases
|
2
|
|
−
|
|
−
|
|
−
|
|
2
|
|
5
|
|
−
|
|
−
|
|
−
|
|
5
|
|
|
|
Transfers(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Stage 1
|
16
|
|
(14)
|
|
(2)
|
|
−
|
|
−
|
|
8
|
|
(7)
|
|
(1)
|
|
−
|
|
−
|
|
|
|
|
to Stage 2
|
(3)
|
|
7
|
|
(4)
|
|
−
|
|
−
|
|
(3)
|
|
9
|
|
(6)
|
|
−
|
|
−
|
|
|
|
|
to Stage 3
|
−
|
|
(13)
|
|
13
|
|
−
|
|
−
|
|
−
|
|
(8)
|
|
8
|
|
−
|
|
−
|
|
|
|
Net remeasurement of loss
allowances(3)
|
(8)
|
|
33
|
|
(1)
|
|
1
|
|
25
|
|
−
|
|
12
|
|
3
|
|
3
|
|
18
|
|
|
|
Derecognitions(4)
|
(2)
|
|
(2)
|
|
(2)
|
|
−
|
|
(6)
|
|
(1)
|
|
(1)
|
|
(2)
|
|
−
|
|
(4)
|
|
|
|
Changes to models
|
(2)
|
|
(12)
|
|
8
|
|
−
|
|
(6)
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Provisions for credit
losses
|
3
|
|
(1)
|
|
12
|
|
1
|
|
15
|
|
9
|
|
5
|
|
2
|
|
3
|
|
19
|
|
|
Write-offs
|
−
|
|
−
|
|
(1)
|
|
−
|
|
(1)
|
|
−
|
|
−
|
|
(1)
|
|
−
|
|
(1)
|
|
|
Disposals
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Recoveries
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Foreign exchange movements and
other
|
(1)
|
|
(1)
|
|
(2)
|
|
2
|
|
(2)
|
|
−
|
|
(1)
|
|
(2)
|
|
2
|
|
(1)
|
|
|
Balance at end
|
71
|
|
91
|
|
96
|
|
(92)
|
|
166
|
|
62
|
|
84
|
|
60
|
|
(71)
|
|
135
|
|
|
Includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts drawn
|
71
|
|
91
|
|
96
|
|
(92)
|
|
166
|
|
62
|
|
84
|
|
60
|
|
(71)
|
|
135
|
|
|
|
Undrawn
commitments(5)
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Personal
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
|
95
|
|
114
|
|
87
|
|
(15)
|
|
281
|
|
70
|
|
117
|
|
75
|
|
(16)
|
|
246
|
|
|
|
Originations or
purchases
|
7
|
|
−
|
|
−
|
|
−
|
|
7
|
|
10
|
|
−
|
|
−
|
|
−
|
|
10
|
|
|
|
Transfers(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Stage 1
|
21
|
|
(19)
|
|
(2)
|
|
−
|
|
−
|
|
19
|
|
(17)
|
|
(2)
|
|
−
|
|
−
|
|
|
|
|
to Stage 2
|
(5)
|
|
6
|
|
(1)
|
|
−
|
|
−
|
|
(4)
|
|
4
|
|
−
|
|
−
|
|
−
|
|
|
|
|
to Stage 3
|
−
|
|
(18)
|
|
18
|
|
−
|
|
−
|
|
−
|
|
(12)
|
|
12
|
|
−
|
|
−
|
|
|
|
Net remeasurement of loss
allowances(3)
|
(17)
|
|
39
|
|
19
|
|
1
|
|
42
|
|
(18)
|
|
33
|
|
7
|
|
5
|
|
27
|
|
|
|
Derecognitions(4)
|
(2)
|
|
(4)
|
|
(1)
|
|
−
|
|
(7)
|
|
(2)
|
|
(4)
|
|
(1)
|
|
−
|
|
(7)
|
|
|
|
Changes to models
|
−
|
|
(1)
|
|
3
|
|
−
|
|
2
|
|
1
|
|
−
|
|
−
|
|
−
|
|
1
|
|
|
Provisions for credit
losses
|
4
|
|
3
|
|
36
|
|
1
|
|
44
|
|
6
|
|
4
|
|
16
|
|
5
|
|
31
|
|
|
Write-offs
|
−
|
|
−
|
|
(23)
|
|
−
|
|
(23)
|
|
−
|
|
−
|
|
(16)
|
|
−
|
|
(16)
|
|
|
Disposals
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Recoveries
|
−
|
|
−
|
|
4
|
|
−
|
|
4
|
|
−
|
|
−
|
|
5
|
|
−
|
|
5
|
|
|
Foreign exchange movements and
other
|
(2)
|
|
(1)
|
|
(1)
|
|
1
|
|
(3)
|
|
(1)
|
|
−
|
|
(1)
|
|
−
|
|
(2)
|
|
|
Balance at end
|
97
|
|
116
|
|
103
|
|
(13)
|
|
303
|
|
75
|
|
121
|
|
79
|
|
(11)
|
|
264
|
|
|
Includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts drawn
|
92
|
|
111
|
|
103
|
|
(13)
|
|
293
|
|
72
|
|
117
|
|
79
|
|
(11)
|
|
257
|
|
|
|
Undrawn
commitments(5)
|
5
|
|
5
|
|
−
|
|
−
|
|
10
|
|
3
|
|
4
|
|
−
|
|
−
|
|
7
|
|
(1) No POCI loans were acquired during the quarters ended
January 31, 2024 and 2023.
(2) Represent stage transfers deemed to have taken place at the
beginning of the quarter in which the transfer occurred.
(3) Includes the net remeasurement of loss allowances (after
transfers) attributable mainly to changes in volumes and in the
credit quality of existing loans as well as to changes in risk
parameters.
(4) Represent reversals to loss allowances arising from full loan
repayments (excluding write-offs and disposals).
(5) The allowances for credit losses on undrawn commitments are
reported in the Other
liabilities item of the Consolidated Balance
Sheet.
|
|
|
|
|
|
Quarter ended
January 31, 2024
|
|
|
|
|
|
Quarter
ended January 31, 2023
|
|
|
|
|
|
Allowances
for
credit losses
on
non-impaired
loans
|
|
Allowances
for
credit losses
on
impaired
loans
|
|
Total
|
|
Allowances for
credit
losses on
non-impaired loans
|
|
Allowances for
credit
losses on
impaired
loans
|
|
Total
|
|
|
|
Stage 1
|
|
Stage 2
|
|
Stage 3
|
|
POCI(1)
|
|
Stage
1
|
|
Stage
2
|
|
Stage
3
|
|
POCI(1)
|
|
|
Credit card
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
|
59
|
|
127
|
|
−
|
|
−
|
|
186
|
|
53
|
|
112
|
|
−
|
|
−
|
|
165
|
|
|
|
Originations or
purchases
|
2
|
|
−
|
|
−
|
|
−
|
|
2
|
|
2
|
|
−
|
|
−
|
|
−
|
|
2
|
|
|
|
Transfers(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Stage 1
|
29
|
|
(29)
|
|
−
|
|
−
|
|
−
|
|
25
|
|
(25)
|
|
−
|
|
−
|
|
−
|
|
|
|
|
to Stage 2
|
(5)
|
|
5
|
|
−
|
|
−
|
|
−
|
|
(4)
|
|
4
|
|
−
|
|
−
|
|
−
|
|
|
|
|
to Stage 3
|
−
|
|
(10)
|
|
10
|
|
−
|
|
−
|
|
−
|
|
(7)
|
|
7
|
|
−
|
|
−
|
|
|
|
Net remeasurement of loss
allowances(3)
|
(25)
|
|
38
|
|
12
|
|
−
|
|
25
|
|
(16)
|
|
33
|
|
8
|
|
−
|
|
25
|
|
|
|
Derecognitions(4)
|
(1)
|
|
−
|
|
−
|
|
−
|
|
(1)
|
|
(1)
|
|
−
|
|
−
|
|
−
|
|
(1)
|
|
|
|
Changes to models
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Provisions for credit
losses
|
−
|
|
4
|
|
22
|
|
−
|
|
26
|
|
6
|
|
5
|
|
15
|
|
−
|
|
26
|
|
|
Write-offs
|
−
|
|
−
|
|
(26)
|
|
−
|
|
(26)
|
|
−
|
|
−
|
|
(18)
|
|
−
|
|
(18)
|
|
|
Disposals
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Recoveries
|
−
|
|
−
|
|
4
|
|
−
|
|
4
|
|
−
|
|
−
|
|
3
|
|
−
|
|
3
|
|
|
Foreign exchange movements and
other
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Balance at end
|
59
|
|
131
|
|
−
|
|
−
|
|
190
|
|
59
|
|
117
|
|
−
|
|
−
|
|
176
|
|
|
Includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts drawn
|
34
|
|
110
|
|
−
|
|
−
|
|
144
|
|
37
|
|
99
|
|
−
|
|
−
|
|
136
|
|
|
|
Undrawn
commitments(5)
|
25
|
|
21
|
|
−
|
|
−
|
|
46
|
|
22
|
|
18
|
|
−
|
|
−
|
|
40
|
|
|
Business and government(6)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at beginning
|
251
|
|
220
|
|
244
|
|
−
|
|
715
|
|
177
|
|
195
|
|
197
|
|
−
|
|
569
|
|
|
|
Originations or
purchases
|
39
|
|
−
|
|
−
|
|
−
|
|
39
|
|
24
|
|
−
|
|
−
|
|
−
|
|
24
|
|
|
|
Transfers(2):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to Stage 1
|
9
|
|
(8)
|
|
(1)
|
|
−
|
|
−
|
|
17
|
|
(17)
|
|
−
|
|
−
|
|
−
|
|
|
|
|
to Stage 2
|
(13)
|
|
14
|
|
(1)
|
|
−
|
|
−
|
|
(6)
|
|
8
|
|
(2)
|
|
−
|
|
−
|
|
|
|
|
to Stage 3
|
−
|
|
(2)
|
|
2
|
|
−
|
|
−
|
|
−
|
|
(1)
|
|
1
|
|
−
|
|
−
|
|
|
|
Net remeasurement of loss
allowances(3)
|
(1)
|
|
−
|
|
31
|
|
(11)
|
|
19
|
|
(10)
|
|
21
|
|
(10)
|
|
−
|
|
1
|
|
|
|
Derecognitions(4)
|
(8)
|
|
(6)
|
|
(3)
|
|
−
|
|
(17)
|
|
(5)
|
|
(8)
|
|
(2)
|
|
−
|
|
(15)
|
|
|
|
Changes to models
|
−
|
|
(5)
|
|
1
|
|
−
|
|
(4)
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Provisions for credit
losses
|
26
|
|
(7)
|
|
29
|
|
(11)
|
|
37
|
|
20
|
|
3
|
|
(13)
|
|
−
|
|
10
|
|
|
Write-offs
|
−
|
|
−
|
|
(44)
|
|
−
|
|
(44)
|
|
−
|
|
−
|
|
(5)
|
|
−
|
|
(5)
|
|
|
Disposals
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
|
Recoveries
|
−
|
|
−
|
|
1
|
|
13
|
|
14
|
|
−
|
|
−
|
|
1
|
|
−
|
|
1
|
|
|
Foreign exchange movements and
other
|
(1)
|
|
−
|
|
(3)
|
|
−
|
|
(4)
|
|
−
|
|
−
|
|
(1)
|
|
−
|
|
(1)
|
|
|
Balance at end
|
276
|
|
213
|
|
227
|
|
2
|
|
718
|
|
197
|
|
198
|
|
179
|
|
−
|
|
574
|
|
|
Includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts drawn
|
193
|
|
186
|
|
227
|
|
2
|
|
608
|
|
134
|
|
167
|
|
178
|
|
−
|
|
479
|
|
|
|
Undrawn
commitments(5)
|
83
|
|
27
|
|
−
|
|
−
|
|
110
|
|
63
|
|
31
|
|
1
|
|
−
|
|
95
|
|
|
Total allowances for credit losses at
end(7)
|
503
|
|
551
|
|
426
|
|
(103)
|
|
1,377
|
|
393
|
|
520
|
|
318
|
|
(82)
|
|
1,149
|
|
|
Includes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Amounts drawn
|
390
|
|
498
|
|
426
|
|
(103)
|
|
1,211
|
|
305
|
|
467
|
|
317
|
|
(82)
|
|
1,007
|
|
|
|
Undrawn
commitments(5)
|
113
|
|
53
|
|
−
|
|
−
|
|
166
|
|
88
|
|
53
|
|
1
|
|
−
|
|
142
|
|
(1) No POCI loans were
acquired during the quarters ended January 31, 2024 and
2023.
(2) Represent stage transfers deemed to have taken place at the
beginning of the quarter in which the transfer occurred.
(3) Includes the net remeasurement of loss allowances (after
transfers) attributable mainly to changes in volumes and in the
credit quality of existing loans as well as to changes in risk
parameters.
(4) Represent reversals to loss allowances arising from full loan
repayments (excluding write-offs and disposals).
(5) The allowances for credit losses on undrawn commitments are
reported in the Other
liabilities item of the Consolidated Balance
Sheet.
(6) Includes customers' liability under acceptances.
(7) Excludes allowances for credit losses on other financial
assets at amortized cost and on off-balance-sheet commitments other
than undrawn commitments.
Note 6 - Loans and Allowances for
Credit Losses (cont.)
Main Macroeconomic Factors
The following tables show the main macroeconomic
factors used to estimate the allowances for credit losses on loans.
For each scenario, namely, the base scenario, upside scenario, and
downside scenario, the average values of the macroeconomic factors
over the next 12 months (used for Stage 1 credit loss
calculations) and over the remaining forecast period (used for
Stage 2 credit loss calculations) are presented.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at January 31,
2024
|
|
|
|
|
|
Base
scenario
|
|
Upside
scenario
|
|
Downside
scenario
|
|
|
|
|
|
Next
12 months
|
|
|
Remaining
forecast
period
|
|
Next
12 months
|
|
|
Remaining
forecast
period
|
|
Next
12 months
|
|
|
Remaining
forecast
period
|
|
|
Macroeconomic factors(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GDP
growth(2)
|
|
0.2
|
%
|
|
1.9
|
%
|
|
0.9
|
%
|
|
1.9
|
%
|
|
(5.1)
|
%
|
|
2.6
|
%
|
|
|
|
Unemployment rate
|
|
6.7
|
%
|
|
6.7
|
%
|
|
6.2
|
%
|
|
5.9
|
%
|
|
8.0
|
%
|
|
7.5
|
%
|
|
|
|
Housing price index
growth(2)
|
|
0.8
|
%
|
|
2.3
|
%
|
|
6.1
|
%
|
|
2.6
|
%
|
|
(13.9)
|
%
|
|
0.3
|
%
|
|
|
|
BBB
spread(3)
|
|
2.4
|
%
|
|
2.1
|
%
|
|
1.9
|
%
|
|
1.8
|
%
|
|
3.1
|
%
|
|
2.3
|
%
|
|
|
|
S&P/TSX
growth(2)(4)
|
|
(7.0)
|
%
|
|
3.5
|
%
|
|
4.0
|
%
|
|
3.0
|
%
|
|
(25.6)
|
%
|
|
5.5
|
%
|
|
|
|
WTI oil price(5)
(US$ per
barrel)
|
|
70
|
|
|
80
|
|
|
91
|
|
|
86
|
|
|
46
|
|
|
56
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at
October 31, 2023
|
|
|
|
|
|
Base
scenario
|
|
Upside
scenario
|
|
Downside
scenario
|
|
|
|
|
|
Next
12
months
|
|
|
Remaining
forecast
period
|
|
Next
12
months
|
|
|
Remaining
forecast
period
|
|
Next
12
months
|
|
|
Remaining
forecast
period
|
|
|
Macroeconomic factors(1)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GDP
growth(2)
|
|
−
|
%
|
|
1.7
|
%
|
|
0.4
|
%
|
|
1.9
|
%
|
|
(4.9)
|
%
|
|
2.6
|
%
|
|
|
|
Unemployment rate
|
|
6.3
|
%
|
|
6.5
|
%
|
|
5.9
|
%
|
|
5.9
|
%
|
|
7.7
|
%
|
|
7.2
|
%
|
|
|
|
Housing price index
growth(2)
|
|
(1.1)
|
%
|
|
1.9
|
%
|
|
2.5
|
%
|
|
2.4
|
%
|
|
(13.9)
|
%
|
|
0.3
|
%
|
|
|
|
BBB
spread(3)
|
|
2.4
|
%
|
|
2.1
|
%
|
|
1.9
|
%
|
|
1.8
|
%
|
|
3.1
|
%
|
|
2.3
|
%
|
|
|
|
S&P/TSX
growth(2)(4)
|
|
(10.0)
|
%
|
|
3.7
|
%
|
|
4.0
|
%
|
|
3.0
|
%
|
|
(25.6)
|
%
|
|
5.5
|
%
|
|
|
|
WTI oil price(5)
(US$ per
barrel)
|
|
77
|
|
|
80
|
|
|
91
|
|
|
86
|
|
|
46
|
|
|
56
|
|
|
(1) All macroeconomic
factors are based on the Canadian economy unless otherwise
indicated.
(2) Growth rate is
annualized.
(3) Yield on corporate
BBB bonds less yield on Canadian federal government bonds with
10-year maturity.
(4) Main stock index in
Canada.
(5) The West Texas
Intermediate (WTI) index is commonly used as a benchmark for the
price of oil.
The main macroeconomic
factors used for the personal
credit portfolio are
unemployment rate and growth in the
housing price index, based on the economy of Canada or
Quebec. The main macroeconomic factors
used for the business
and government credit portfolio are
unemployment rate, spread on corporate BBB bonds, S&P/TSX
growth, and WTI oil price. An increase in unemployment
rate or BBB spread will generally lead to higher allowances for
credit losses, whereas an increase in the other macroeconomic
factors (GDP, S&P/TSX, housing price index, and WTI oil price)
will generally lead to lower allowances for credit
losses.
During the quarter ended
January 31, 2024, the macroeconomic outlook remained
essentially unchanged and uncertainty remains high.
The economic outlook remains
uncertain as central banks remain determined to curb inflation,
which has shown signs of improvement but is too high in several
countries. Although interest rates may be cut in 2024, monetary
policy will remain tight, and this could be a difficult year. While
the U.S. economy held up well over the past year due to an
expansionary fiscal policy and sustained consumption, the delayed
impact of monetary policy will continue to be felt, which should
lead to a sluggish economy in the coming quarters. The sensitivity
of the Canadian economy to interest rates has materialized and
suggests new weaknesses in the labour market that may spill over
into the real estate market, which has remained resilient given
strong demographic growth. A contraction in the Canadian economy is
expected around midyear, leading to stagnant growth in 2024. In the
base scenario, the unemployment rate stands at 7.0% after 12
months, up 1.2 percentage points. Despite an initial decline,
housing prices rise slightly, up 0.8% year over year. The
S&P/TSX sits at 18,500 points after one year, and the
price of oil hovers around US$73.
In the upside scenario, an easing
of geopolitical tensions strengthens confidence. Prices for goods
continue to fall due to a slowdown in the global economy, where
inflation continues to subside without the tight monetary policy
having caused too much damage to the economy. The Canadian and U.S.
governments maintain spending growth, which tempers the restrictive
monetary policies. With the labour market holding up, consumer
spending remains relatively resilient. Housing prices rise at a
moderate pace against a backdrop of strong demographic growth.
After one year, the unemployment rate is more favourable than in
the base scenario (eight-tenths lower). Housing prices rise 6.1%,
the S&P/TSX is at 20,687 points after one year, and the price
of oil hovers around US$91.
In the downside scenario, central
banks have underestimated the impact of simultaneous tightening
measures, and the global economy sinks into a recession as falling
demand translates into reduced investment by businesses, which also
lay off a large number of workers. Given budgetary constraints,
governments are unable to support households and businesses as they
did during the pandemic. The geopolitical situation continues to
cause concern, with the risk of conflicts escalating. After 12
months, economic contraction pushes unemployment to 8.8%. Housing
prices fall sharply (-13.9%). The S&P/TSX sits at
14,801 points after one year, and the price of oil hovers
around US$40.
Given the uncertainty surrounding
key inputs used to measure credit losses, the Bank has applied
expert credit judgment to adjust the modelled expected credit loss
results.
Sensitivity Analysis of Allowances for Credit Losses on
Non-Impaired Loans
Scenarios
The following table shows a comparison of the
Bank's allowances for credit losses on non-impaired loans (Stages 1
and 2) as at January 31, 2024 based on the
probability weightings of three scenarios with
allowances for credit losses resulting from simulations of each
scenario weighted at 100%.
|
|
|
|
Allowances for credit losses
on non-impaired loans
|
|
|
Balance as at January 31, 2024
|
|
1,054
|
|
|
Simulations
|
|
|
|
|
|
100% upside scenario
|
|
716
|
|
|
|
100% base scenario
|
|
842
|
|
|
|
100% downside scenario
|
|
1,373
|
|
Note 7 - Other
Assets
|
|
|
As at January 31,
2024
|
|
As at
October 31, 2023(1)
|
|
|
Receivables, prepaid expenses and
other items
|
|
3,276
|
|
3,118
|
|
|
Interest and dividends
receivable
|
|
1,513
|
|
1,605
|
|
|
Due from clients, dealers and
brokers
|
|
1,061
|
|
538
|
|
|
Defined benefit asset
|
|
394
|
|
356
|
|
|
Deferred tax assets
|
|
645
|
|
666
|
|
|
Current tax assets
|
|
736
|
|
925
|
|
|
Reinsurance assets
|
|
20
|
|
16
|
|
|
Insurance assets
|
|
19
|
|
20
|
|
|
Commodities(2)
|
|
514
|
|
544
|
|
|
|
|
8,178
|
|
7,788
|
|
(1) Certain amounts have
been adjusted to reflect accounting policy changes arising from the
adoption of IFRS 17. For additional information, see Note 2 to
these consolidated financial statements.
(2) Commodities are
recorded at fair value based on quoted prices in active markets and
are classified in Level 1 of the fair value measurement
hierarchy.
Note
8 - Deposits
|
|
|
|
|
|
|
As at January 31,
2024
|
|
As at
October 31, 2023
|
|
|
|
|
On
demand(1)
|
|
After
notice(2)
|
|
Fixed
term(3)
|
|
Total
|
|
Total
|
|
|
Personal
|
|
4,530
|
|
36,049
|
|
50,485
|
|
91,064
|
|
87,883
|
|
|
Business and government
|
|
63,865
|
|
31,498
|
|
109,061
|
|
204,424
|
|
197,328
|
|
|
Deposit-taking
institutions
|
|
2,518
|
|
196
|
|
1,895
|
|
4,609
|
|
2,962
|
|
|
|
|
70,913
|
|
67,743
|
|
161,441
|
|
300,097
|
|
288,173
|
|
(1) Demand deposits are deposits for
which the Bank does not have the right to require a notice of
withdrawal and consist essentially of deposits in chequing
accounts.
(2) Notice deposits are deposits for which the Bank may legally
require a notice of withdrawal and consist mainly of deposits in
savings accounts.
(3) Fixed-term deposits are deposits that can be withdrawn by the
holder on a specified date and include term deposits, guaranteed
investment certificates, savings accounts and plans, covered bonds,
and other similar instruments.
The Deposits -
Business and government item includes, among other items,
covered bonds for which the balance was $9.8 billion as at
January 31, 2024 ($10.9 billion as at
October 31, 2023). During the quarter ended
January 31, 2024, an amount of 750 million euros in
covered bonds came to maturity (the Bank issued 280
million Swiss francs in covered bonds during the quarter
ended January 31, 2023). For additional
information on covered bonds, see Note 27 to the audited annual
consolidated financial statements for the year ended
October 31, 2023.
In addition, as at January 31, 2024, the
Deposits - Business and
government item also includes deposits of
$19.7 billion ($17.7 billion as
at October 31, 2023) that are subject to the bank bail-in
conversion regulations issued by the Government of Canada. These
regulations provide certain powers to the Canada Deposit Insurance
Corporation (CDIC), notably the power to convert certain eligible
Bank shares and liabilities into common shares should the Bank
become non-viable.
Note 9 - Other
Liabilities
|
|
|
As at January 31,
2024
|
|
As at
October 31, 2023(1)
|
|
|
Accounts payable and accrued
expenses
|
|
2,127
|
|
2,458
|
|
|
Subsidiaries' debts to third
parties
|
|
239
|
|
224
|
|
|
Interest and dividends
payable
|
|
1,970
|
|
2,022
|
|
|
Lease liabilities
|
|
483
|
|
517
|
|
|
Due to clients, dealers and
brokers
|
|
840
|
|
669
|
|
|
Defined benefit
liability
|
|
101
|
|
94
|
|
|
Allowances for credit
losses - Off-balance-sheet commitments (Note 6)
|
|
192
|
|
176
|
|
|
Deferred tax
liabilities
|
|
38
|
|
28
|
|
|
Current tax liabilities
|
|
131
|
|
204
|
|
|
Insurance liabilities
|
|
7
|
|
8
|
|
|
Other
items(2)(3)(4)
|
|
1,254
|
|
1,016
|
|
|
|
|
7,382
|
|
7,416
|
|
(1) Certain amounts have
been adjusted to reflect accounting policy changes arising from the
adoption of IFRS 17. For additional information, see Note 2 to
these consolidated financial statements.
(2) As at
January 31, 2024, Other
items included $22 million in litigation provisions
($42 million as at October 31, 2023).
(3) As at January 31, 2024, Other items included $29 million
in provisions for onerous contracts ($31 million as at
October 31, 2023).
(4) As at
January 31, 2024, Other
items included the financial liability resulting from put
options written to non-controlling interests of Flinks Technology
Inc. (Flinks) for an amount of $22 million ($23 million
as at October 31, 2023).
Note
10 - Share Capital and Other Equity Instruments
Shares and Other Equity Instruments
Outstanding
|
|
|
|
|
As at January 31,
2024
|
|
As at
October 31, 2023
|
|
|
|
|
|
|
Number
of shares
or
LRCN(1)
|
|
Shares
or LRCN
$
|
|
Number
of
shares
or
LRCN
|
|
Shares
or
LRCN
$
|
|
|
|
|
|
|
|
|
|
|
|
First Preferred Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 30
|
|
14,000,000
|
|
350
|
|
14,000,000
|
|
350
|
|
|
|
|
Series 32
|
|
12,000,000
|
|
300
|
|
12,000,000
|
|
300
|
|
|
|
|
Series 38
|
|
16,000,000
|
|
400
|
|
16,000,000
|
|
400
|
|
|
|
|
Series 40
|
|
12,000,000
|
|
300
|
|
12,000,000
|
|
300
|
|
|
|
|
Series 42
|
|
12,000,000
|
|
300
|
|
12,000,000
|
|
300
|
|
|
|
|
|
|
66,000,000
|
|
1,650
|
|
66,000,000
|
|
1,650
|
|
|
Other equity
instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
LRCN - Series 1
|
|
500,000
|
|
500
|
|
500,000
|
|
500
|
|
|
|
|
LRCN - Series 2
|
|
500,000
|
|
500
|
|
500,000
|
|
500
|
|
|
|
|
LRCN - Series 3
|
|
500,000
|
|
500
|
|
500,000
|
|
500
|
|
|
|
|
|
|
1,500,000
|
|
1,500
|
|
1,500,000
|
|
1,500
|
|
|
Preferred shares and other equity
instruments
|
|
67,500,000
|
|
3,150
|
|
67,500,000
|
|
3,150
|
|
|
Common shares at beginning of
fiscal year
|
|
338,284,629
|
|
3,294
|
|
336,582,124
|
|
3,196
|
|
|
Issued pursuant to the Stock
Option Plan
|
|
858,373
|
|
51
|
|
1,678,321
|
|
95
|
|
|
Impact of shares purchased or sold
for trading(2)
|
|
23,348
|
|
2
|
|
31,975
|
|
3
|
|
|
Other
|
|
−
|
|
−
|
|
(7,791)
|
|
−
|
|
|
Common shares at end of
period
|
|
339,166,350
|
|
3,347
|
|
338,284,629
|
|
3,294
|
|
(1) Limited Recourse
Capital Notes (LRCN).
(2) As at
January 31, 2024, a total of 50,073 shares were sold short for
trading, representing $5 million (26,725 shares were sold
short for trading, representing an amount of $3 million as at
October 31, 2023).
Note 10 - Share Capital and Other
Equity Instruments (cont.)
Dividends Declared and Distributions on Other Equity
Instruments
|
|
|
|
|
|
|
|
|
Quarter
ended January 31
|
|
|
|
|
2024
|
|
2023
|
|
|
|
|
|
|
Dividends
or
interest
$
|
|
Dividends
per share
|
|
Dividends
or
interest
$
|
|
Dividends
per
share
|
|
|
|
|
|
|
|
|
|
|
|
First Preferred Shares
|
|
|
|
|
|
|
|
|
|
|
|
|
Series 30
|
|
3
|
|
0.2516
|
|
3
|
|
0.2516
|
|
|
|
|
Series 32
|
|
3
|
|
0.2399
|
|
3
|
|
0.2399
|
|
|
|
|
Series 38
|
|
7
|
|
0.4392
|
|
7
|
|
0.4392
|
|
|
|
|
Series 40
|
|
5
|
|
0.3636
|
|
3
|
|
0.2875
|
|
|
|
|
Series 42
|
|
5
|
|
0.4410
|
|
4
|
|
0.3094
|
|
|
|
|
|
|
23
|
|
|
|
20
|
|
|
|
|
Other equity
instruments
|
|
|
|
|
|
|
|
|
|
|
|
|
LRCN - Series 1(1)
|
|
5
|
|
|
|
5
|
|
|
|
|
|
|
LRCN - Series
2(2)
|
|
5
|
|
|
|
5
|
|
|
|
|
|
|
LRCN - Series
3(3)
|
|
10
|
|
|
|
10
|
|
|
|
|
|
|
|
|
20
|
|
|
|
20
|
|
|
|
|
Preferred shares and other equity
instruments
|
|
43
|
|
|
|
40
|
|
|
|
|
Common shares
|
|
359
|
|
1.0600
|
|
327
|
|
0.9700
|
|
|
|
|
|
|
402
|
|
|
|
367
|
|
|
|
(1) The LRCN - Series 1
bear interest at a fixed rate of 4.30% per annum.
(2) The LRCN - Series 2
bear interest at a fixed rate of 4.05% per annum.
(3) The LRCN - Series 3
bear interest at a fixed rate of 7.50% per annum.
Repurchase of
Common Shares
On December 12, 2023, the Bank began a
normal course issuer bid to repurchase for cancellation up to
7,000,000 common shares (representing approximately 2.1% of its
then outstanding common shares) over the 12-month period ending on
December 11, 2024. On December 12, 2022, the Bank had begun a
normal course issuer bid to repurchase for cancellation up to
7,000,000 common shares (representing approximately 2.1% of its
then outstanding common shares) over the 12-month period ended
December 11, 2023. Any repurchase through the Toronto Stock
Exchange will be done at market prices. The common shares may also
be repurchased through other means authorized by the Toronto Stock
Exchange and applicable regulations, including private agreements
or share repurchase programs under issuer bid exemption orders
issued by the securities regulators. A private purchase made under
an exemption order issued by a securities regulator will be done at
a discount to the prevailing market price. The amounts that are
paid above the average book value of the common shares are charged
to Retained earnings.
During the quarters ended January 31, 2024 and 2023, the Bank
did not repurchase any common shares.
Note 11 - Capital
Disclosure
The Bank and all other major Canadian banks
have to maintain the following minimum capital ratios established
by the Office of the Superintendent of Financial Institutions
(OSFI): a CET1 capital ratio of at least 11.5%, a Tier 1 capital
ratio of at least 13.0%, and a Total capital ratio of at least
15.0%. All of these ratios include a capital conservation buffer of
2.5% established by the Basel Committee on Banking Supervision
(BCBS) and OSFI, a 1.0% surcharge applicable solely to Domestic
Systemically Important Banks (D-SIBs), and a 3.5% domestic
stability buffer (DSB) established by OSFI. The DSB, which can vary
from 0% to 4.0% of risk-weighted assets (RWA), consists exclusively
of CET1 capital. A D‑SIB that fails to meet this buffer requirement
will not be subject to automatic constraints to reduce capital
distributions but must provide a remediation plan to OSFI. The Bank
also has to meet the requirements of the capital output floor
calculated under the Basel III Standardized Approaches. OSFI is
allowing a phase-in of the floor factor over three years, starting
at 65.0% in the second quarter of 2023 and rising 2.5% per year to
reach 72.5% in fiscal 2026. For fiscal 2024, the floor factor is
set at 67.5%. If the capital requirement is less than the capital
output floor requirement after applying the floor factor, the
difference is added to the total RWA. Lastly, OSFI requires D-SIBs
to maintain a Basel III leverage ratio of at least 3.5%, which
includes a Tier 1 capital buffer of 0.5% applicable only to
D-SIBs.
OSFI also requires D-SIBs to maintain a
risk-based total loss-absorbing capacity (TLAC) ratio of at least
25.0% (including the DSB) of RWA and a TLAC leverage ratio of at
least 7.25%. The purpose of TLAC is to ensure that a D-SIB has
sufficient loss-absorbing capacity to support its internal
recapitalization in the unlikely event it becomes
non-viable.
In the first quarter of 2024, the Bank
implemented OSFI's finalized guidance of the revised
market risk capital rules, consistent with the BCBS's Fundamental
Review of the Trading Book (FRTB) as well as the revised credit
valuation adjustment (CVA) risk framework.
During the quarter ended January 31, 2024,
the Bank was compliant with all of OSFI's regulatory capital,
leverage, and TLAC requirements.
Regulatory Capital(1), Leverage Ratio(1) and TLAC(2)
|
|
|
As at January 31,
2024
|
|
|
As at
October 31, 2023
|
|
|
|
Capital
|
|
|
|
|
|
|
|
|
|
CET1
|
|
17,350
|
|
|
16,920
|
|
|
|
|
Tier 1
|
|
20,498
|
|
|
20,068
|
|
|
|
|
Total
|
|
21,423
|
|
|
21,056
|
|
|
|
Risk-weighted assets
|
|
132,370
|
|
|
125,592
|
|
|
|
Total exposure
|
|
478,484
|
|
|
456,478
|
|
|
|
Capital ratios
|
|
|
|
|
|
|
|
|
|
CET1
|
|
13.1
|
%
|
|
13.5
|
%
|
|
|
|
Tier 1
|
|
15.5
|
%
|
|
16.0
|
%
|
|
|
|
Total
|
|
16.2
|
%
|
|
16.8
|
%
|
|
|
Leverage ratio
|
|
4.3
|
%
|
|
4.4
|
%
|
|
|
Available TLAC
|
|
37,162
|
|
|
36,732
|
|
|
|
TLAC ratio
|
|
28.1
|
%
|
|
29.2
|
%
|
|
|
TLAC leverage ratio
|
|
7.8
|
%
|
|
8.0
|
%
|
|
(1) Capital, risk-weighted assets, total exposure, the capital
ratios, and the leverage ratio are calculated in accordance with
the Basel III rules, as set out in OSFI's Capital Adequacy Requirements
Guideline and Leverage
Requirements Guideline.
(2) Available TLAC, the TLAC ratio, and the TLAC leverage ratio
are calculated in accordance with OSFI's Total Loss Absorbing Capacity
Guideline.
Note 12 - Share-Based Payments
Stock Option
Plan
During the quarter ended January 31,
2024, the Bank awarded 1,222,652 stock options (1,416,060 stock
options during the quarter ended January 31, 2023) with an
average fair value of $13.74 per option ($14.76 in
2023).
As at January 31, 2024, there were
11,892,260 stock options outstanding (11,546,688 stock options as
at October 31, 2023).
The average fair value of the options awarded
was estimated on the award date using the Black-Scholes model as
well as the following assumptions.
|
|
|
Quarter
ended January 31
|
|
|
|
|
2024
|
|
2023
|
|
|
Risk-free interest rate
|
|
3.61%
|
|
3.25%
|
|
|
Expected life of
options
|
|
7 years
|
|
7
years
|
|
|
Expected volatility
|
|
22.29%
|
|
23.13%
|
|
|
Expected dividend yield
|
|
4.62%
|
|
4.23%
|
|
During the quarter ended January 31,
2024, a $4 million compensation expense was recorded for this
plan ($5 million for the quarter ended
January 31, 2023).
Note
13 - Employee Benefits - Pension Plans and Other Post-Employment
Benefit Plans
The Bank offers pension plans that have a
defined benefit component and a defined contribution component. The
Bank also offers other post-employment benefit plans to eligible
employees. The cost associated with these plans, including the
remeasurements recognized in Other comprehensive income, is
presented in the following table.
Cost for Pension Plans and Other Post-Employment Benefit
Plans
|
|
|
|
|
|
|
Quarter
ended January 31
|
|
|
|
|
Pension
plans
|
|
Other
post-employment benefit plans
|
|
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
|
Current service cost
|
|
20
|
|
23
|
|
−
|
|
−
|
|
|
Interest expense (income),
net
|
|
(4)
|
|
(6)
|
|
1
|
|
2
|
|
|
Administrative costs
|
|
1
|
|
1
|
|
|
|
|
|
|
Expense of the defined benefit
component
|
|
17
|
|
18
|
|
1
|
|
2
|
|
|
Expense of the defined
contribution component
|
|
4
|
|
1
|
|
|
|
|
|
|
Expense recognized in Net
income
|
|
21
|
|
19
|
|
1
|
|
2
|
|
|
Remeasurements(1)
|
|
|
|
|
|
|
|
|
|
|
|
Actuarial (gains) losses on
defined benefit obligation
|
|
504
|
|
330
|
|
8
|
|
6
|
|
|
|
Return on plan
assets(2)
|
|
(523)
|
|
(264)
|
|
|
|
|
|
|
Remeasurements recognized in Other comprehensive
income
|
|
(19)
|
|
66
|
|
8
|
|
6
|
|
|
|
|
2
|
|
85
|
|
9
|
|
8
|
|
(1)
Changes related to the discount rate and to the
return on plan assets are reviewed and updated on a quarterly
basis. All other assumptions are updated annually.
(2)
Excludes interest income.
Note 14 - Income Taxes
Notice of
Assessment
In March 2023, the Bank was reassessed by the
Canada Revenue Agency (CRA) for additional income tax and interest
of approximately $90 million (including estimated provincial
tax and interest) in respect of certain Canadian dividends received
by the Bank during the 2018 taxation year.
In prior fiscal years, the Bank had been
reassessed for additional income tax and interest of approximately
$875 million (including provincial tax and interest) in
respect of certain Canadian dividends received by the Bank during
the 2012-2017 taxation years.
In the reassessments, the CRA alleges that the
dividends were received as part of a "dividend rental
arrangement".
In October 2023, the Bank filed a notice of
appeal with the Tax Court of Canada, and the matter is now in
litigation. The CRA may issue reassessments to the Bank for
taxation years subsequent to 2018 in regard to certain activities
similar to those that were the subject of the above-mentioned
reassessments. The Bank remains confident that its tax position was
appropriate and intends to vigorously defend its position. As a
result, no amount has been recognized in the consolidated financial
statements as at January 31, 2024.
Canadian
Government's 2022 Tax Measures
On November 4, 2022, the Government of
Canada introduced Bill C-32 - An
Act to implement certain provisions of the fall economic statement
tabled in Parliament on November 3, 2022 and certain
provisions of the budget tabled in Parliament on April 7,
2022 to implement tax measures applicable to certain
entities of banking and life insurer groups, as presented in its
April 7, 2022 budget. These tax measures included the Canada
Recovery Dividend (CRD), which is a one-time, 15% tax on the fiscal
2021 and 2020 average taxable income above $1 billion, as well
as a 1.5% increase in the statutory tax rate. On December 15,
2022, Bill C-32 received royal assent. Given that these tax
measures were in effect as at January 31, 2023, a $32 million
tax expense for the CRD and an $8 million tax recovery for the
tax rate increase, including the impact related to current and
deferred taxes for fiscal 2022, were recognized in the consolidated
financial statements during the quarter ended January 31,
2023.
Proposed
Legislation
On November 30, 2023, the Government
of Canada introduced Bill C-59 - An Act to implement certain provisions of the
fall economic statement tabled in Parliament on November 21, 2023
and certain provisions of the budget tabled in Parliament on March
28, 2023 to implement tax measures applicable to the Bank.
The measures include the denial of the deduction in respect of
dividends received after 2023 on shares that are mark-to-market
property for tax purposes (except for dividends received on
"taxable preferred shares" as defined in the Income Tax Act), as well as the
application of a 2% tax on the net value of equity repurchases
occurring as of January 1, 2024. Although these tax measures were
not substantively enacted at the reporting date, the consolidated
financial statements reflect, since January 1, 2024, the denial of
the deduction in respect of the dividends covered by Bill
C-59.
During fiscal 2023, the Government of Canada
proposed to implement the Pillar 2 rules (global minimum tax)
published by the Organisation for Economic Co-operation and
Development (OECD) that will apply to fiscal years beginning on or
after December 31, 2023 (November 1, 2024 for the Bank). To date,
the Pillar 2 rules have not yet been included in a bill in Canada
but have been included in a bill or enacted in certain
jurisdictions where the Bank operates. The Pillar 2 rules do not
apply to this fiscal year, and the Bank is currently assessing its
income tax exposure arising from these rules.
Note 15 - Earnings Per Share
Diluted earnings per share is calculated by
dividing net income attributable to common shareholders by the
weighted average number of common shares outstanding after taking
into account the dilution effect of stock options using the
treasury stock method and any gain (loss) on the redemption of
preferred shares.
|
|
|
Quarter
ended January 31
|
|
|
|
|
2024
|
|
2023(1)
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share
|
|
|
|
|
|
|
Net income attributable to the
Bank's shareholders and holders of other equity
instruments
|
|
922
|
|
876
|
|
|
Dividends on preferred shares and
distributions on other equity instruments
|
|
37
|
|
35
|
|
|
Net income attributable to common
shareholders
|
|
885
|
|
841
|
|
|
Weighted average basic number of
common shares outstanding (thousands)
|
|
338,675
|
|
336,993
|
|
|
Basic earnings per share (dollars)
|
|
2.61
|
|
2.49
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
|
|
|
|
|
Net income attributable to common
shareholders
|
|
885
|
|
841
|
|
|
Weighted average basic number of
common shares outstanding (thousands)
|
|
338,675
|
|
336,993
|
|
|
Adjustment to average number of
common shares (thousands)
|
|
|
|
|
|
|
|
Stock
options(2)
|
|
2,664
|
|
3,450
|
|
|
Weighted average diluted number of
common shares outstanding (thousands)
|
|
341,339
|
|
340,443
|
|
|
Diluted earnings per share (dollars)
|
|
2.59
|
|
2.47
|
|
(1) Certain amounts have been adjusted to reflect accounting
policy changes arising from the adoption of IFRS 17. For additional
information, see Note 2 to these consolidated financial
statements.
(2) For the quarter ended January 31, 2024, the calculation
of diluted earnings per share excluded an average number of
1,719,303 options outstanding with a weighted average exercise
price of $96.35 (1,754,368 options outstanding with a weighted
average exercise price of $96.35 for the quarter ended
January 31, 2023), given that the exercise price of these
options was greater than the average price of the Bank's common
shares.
Note
16 - Segment Disclosures
The Bank carries out its activities in four
business segments, which are defined below. For presentation
purposes, other activities are grouped in the Other heading. Each reportable segment
is distinguished by services offered, type of clientele, and
marketing strategy. The presentation of segment
disclosures is consistent with the presentation adopted by the Bank
for the fiscal year beginning November 1, 2023.
This presentation reflects the retrospective application of
the accounting policy changes arising from the adoption of IFRS 17.
The figures for the 2023 quarters have been adjusted to reflect
these accounting policy changes.
Personal and
Commercial
The Personal and Commercial segment
encompasses the banking, financing, and investing services offered
to individuals, advisors, and businesses as well as insurance
operations.
Wealth
Management
The Wealth Management segment comprises
investment solutions, trust services, banking services, lending
services, and other wealth management solutions offered through
internal and third-party distribution networks.
Financial
Markets
The Financial Markets segment encompasses
corporate banking and investment banking and financial solutions
for large and mid-size corporations, public sector organizations,
and institutional investors.
U.S.
Specialty Finance and International (USSF&I)
The USSF&I segment
encompasses the specialty finance expertise provided by the
Credigy subsidiary; the activities of the ABA Bank subsidiary,
which offers financial products and services to individuals and
businesses in Cambodia; and the activities of targeted investments
in certain emerging markets.
Other
This heading encompasses treasury activities;
liquidity management; Bank funding; asset/liability management
activities; the activities of the Flinks subsidiary, a fintech
company specialized in financial data aggregation and distribution;
certain specified items; and the unallocated portion of corporate
units.
|
|
|
|
|
|
|
|
|
|
|
|
Quarter
ended January 31(1)
|
|
|
|
Personal
and
Commercial
|
|
Wealth
Management
|
|
Financial
Markets
|
|
|
USSF&I
|
|
Other
|
|
|
|
Total
|
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
2024
|
|
2023
|
|
Net interest
income(2)
|
870
|
|
825
|
|
198
|
|
208
|
|
(518)
|
|
(91)
|
|
301
|
|
299
|
|
(100)
|
|
(142)
|
|
751
|
|
1,099
|
|
Non-interest
income(2)
|
284
|
|
279
|
|
462
|
|
429
|
|
1,273
|
|
780
|
|
25
|
|
20
|
|
(85)
|
|
(45)
|
|
1,959
|
|
1,463
|
|
Total revenues
|
1,154
|
|
1,104
|
|
660
|
|
637
|
|
755
|
|
689
|
|
326
|
|
319
|
|
(185)
|
|
(187)
|
|
2,710
|
|
2,562
|
|
Non-interest expenses
|
615
|
|
593
|
|
390
|
|
364
|
|
313
|
|
287
|
|
100
|
|
98
|
|
31
|
|
48
|
|
1,449
|
|
1,390
|
|
Income before provisions for
credit
losses and income
taxes
|
539
|
|
511
|
|
270
|
|
273
|
|
442
|
|
402
|
|
226
|
|
221
|
|
(216)
|
|
(235)
|
|
1,261
|
|
1,172
|
|
Provisions for credit
losses
|
71
|
|
61
|
|
−
|
|
−
|
|
17
|
|
(9)
|
|
36
|
|
35
|
|
(4)
|
|
(1)
|
|
120
|
|
86
|
|
Income before income taxes
(recovery)
|
468
|
|
450
|
|
270
|
|
273
|
|
425
|
|
411
|
|
190
|
|
186
|
|
(212)
|
|
(234)
|
|
1,141
|
|
1,086
|
|
Income taxes
(recovery)(2)(3)
|
129
|
|
124
|
|
74
|
|
75
|
|
117
|
|
113
|
|
40
|
|
39
|
|
(141)
|
|
(141)
|
|
219
|
|
210
|
|
Net income
|
339
|
|
326
|
|
196
|
|
198
|
|
308
|
|
298
|
|
150
|
|
147
|
|
(71)
|
|
(93)
|
|
922
|
|
876
|
|
Non-controlling
interests
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
−
|
|
Net income
attributable
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
to the Bank's shareholders and
holders of other equity instruments
|
339
|
|
326
|
|
196
|
|
198
|
|
308
|
|
298
|
|
150
|
|
147
|
|
(71)
|
|
(93)
|
|
922
|
|
876
|
|
Average
assets(4)
|
155,031
|
|
146,131
|
|
8,708
|
|
8,523
|
|
190,443
|
|
173,262
|
|
26,025
|
|
21,606
|
|
62,459
|
|
75,424
|
|
442,666
|
|
424,946
|
|
Total assets
|
156,433
|
|
146,797
|
|
8,769
|
|
8,427
|
|
180,458
|
|
163,581
|
|
26,667
|
|
22,072
|
|
61,600
|
|
77,410
|
|
433,927
|
|
418,287
|
(1) Certain comparative figures have been adjusted to reflect
accounting policy changes arising from the adoption of IFRS 17. For
additional information, see Note 2 to these consolidated financial
statements.
(2) The Net interest
income, Non-interest
income, and Income taxes
(recovery) items of the business segments are presented on a
taxable equivalent basis. Taxable equivalent basis is a calculation
method that consists of grossing up certain revenues taxed at lower
rates by the income tax to a level that would make it comparable to
revenues from taxable sources in Canada. For the business segments
as a whole, Net interest
income was grossed up by $37 million ($78 million
in 2023), Non-interest
income was grossed up by $73 million ($52 million
in 2023), and an equivalent amount was recognized in Income taxes (recovery). The effect of
these adjustments have been reversed under the Other heading. In light of the
proposed legislation with respect to Canadian dividends, the Bank
did not either recognize an income tax deduction or use the taxable
equivalent basis method to adjust revenues related to affected
dividends received after January 1, 2024 (for additional
information, see Note 14).
(3) During the quarter
ended January 31, 2023, the Bank had recorded a $32 million tax
expense with respect to the Canada Recovery Dividend, i.e., a
one-time, 15% tax on the fiscal 2021 and 2020 average taxable
income above $1 billion as well as an $8 million tax recovery
related to a 1.5% increase in the statutory tax rate, which
included the impact related to current and deferred taxes for
fiscal 2022. These items were recorded in the Other heading. For additional
information on these tax measures, see Note 14.
(4) Represents the average of the daily balances for the period,
which is also the basis on which sectoral assets are reported in
the business segments.
Note
17 - Event After the Consolidated Balance Sheet
Date
Issuance of
Subordinated Debt
On February 5, 2024, the Bank issued medium-term
notes for a total amount of $500 million. They bear interest at
5.279% and mature on February 15, 2034. The interest on these
notes will be payable semi-annually at a rate of 5.279% per annum
until February 15, 2029 and, thereafter, will be payable
quarterly at a floating rate equal to Daily Compounded
CORRA plus 1.80%. With the prior approval of OSFI, the Bank
may, at its option, redeem these notes as of February 15,
2029, in whole or in part, at their nominal value plus accrued and
unpaid interest. Given that the medium-term notes satisfy the
non-viability contingent capital requirements, they qualify for the
purposes of calculating regulatory capital under Basel
III.