TD Bank 2001 Annual Report Download - page 63

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61
FINANCIAL RESULTS
Interest rate risk1
(billions of dollars)
Total Non-
Floating Within 3 months within 1 year to Over interest
2001 rate 3 months to 1 year 1 year 5 years 5 years sensitive Total
Assets
Cash resources $ – $ 5.5 $ .2 $ 5.7 $ – $ – $ .2 $ 5.9
Effective yield 2.9% 4.6%
Securities purchased under
resale agreements $ 4.0 $ 13.1 $ 3.1 $ 20.2 $ – $ – $ – $ 20.2
Effective yield 2.9% 4.4%
Investment securities $ .6 $ 4.6 $ 7.2 $ 12.4 $ 12.4 $ .9 $ 5.3 $ 31.0
Effective yield 3.5% 4.4% 5.8% 5.7%
Trading securities $ 66.2 $ – $ – $ 66.2 $ – $ – $ – $ 66.2
Loans $ 37.8 $ 24.3 $ 17.2 $ 79.3 $ 36.5 $ 3.3 $ .6 $ 119.7
Effective yield 5.0% 6.5% 6.9% 6.5%
Other $ 30.6 $ – $ – $ 30.6 $ – $ – $ 14.2 $ 44.8
Total assets $ 139.2 $ 47.5 $ 27.7 $ 214.4 $ 48.9 $ 4.2 $ 20.3 $ 287.8
Liabilities and
shareholders’ equity
Deposits $ 39.9 $ 81.0 $ 29.2 $ 150.1 $ 24.5 $ 1.4 $ 17.9 $ 193.9
Effective yield 2.9% 4.1% 4.8% 2.6%
Obligations related to securities
sold short $ 21.1 $ – $ – $ 21.1 $ .3 $ – $ – $ 21.4
Effective yield 5.9%
Obligations related to securities
sold under repurchase
agreements $ .1 $ 8.9 $ 4.3 $ 13.3 $ .9 $ .1 $ .3 $ 14.6
Effective yield 2.7% 4.5% 2.9% 3.4%
Subordinated notes and
debentures $ – $ .6 $ .6 $ 1.2 $ 2.0 $ 1.7 $ – $ 4.9
Effective yield 6.0% 5.9% 6.4% 7.0%
Other $ 30.9 $ – $ – $ 30.9 $ – $ .9 $ 7.8 $ 39.6
Shareholders’ equity $ – $ – $ .2 $ .2 $ .5 $ .8 $ 11.9 $ 13.4
Total liabilities and
shareholders’ equity $ 92.0 $ 90.5 $ 34.3 $ 216.8 $ 28.2 $ 4.9 $ 37.9 $ 287.8
On-balance sheet position $ 47.2 $ (43.0) $ (6.6) $ (2.4) $ 20.7 $ (.7) $ (17.6) $ –
Total pay side instruments2$ – $ (81.8) $ (14.4) $ (96.2) $ (22.8) $ (3.0) $ – $(122.0)
Effective yield 3.6% 4.3% 5.5% 5.7%
Total receive side instruments2$ – $ 68.5 $ 25.0 $ 93.5 $ 24.8 $ 3.7 $ – $ 122.0
Effective yield 3.6% 4.6% 4.5% 5.7%
Off-balance sheet position $ – $ (13.3) $ 10.6 $ (2.7) $ 2.0 $ .7 $ – $ –
Net position $ 47.2 $ (56.3) $ 4.0 $ (5.1) $ 22.7 $ – $ (17.6) $ –
The Bank’s management of interest rate risk is described in the
Managing risk section of the Management’s Discussion and
Analysis of Operating Performance. The Canadian Institute of
Chartered Accountants’ handbook Section 3860, Financial
Instruments – Disclosure and Presentation, requires disclosure
of exposure to interest rate risk in a prescribed format, as set out
in the following table.
NOTE 13 Interest rate risk
1The above table details the earlier of maturity or repricing date of interest
sensitive instruments. Contractual repricing may be adjusted according
to management estimates for prepayments or early redemptions that are
independent of changes in interest rates. Off-balance sheet transactions
include only transactions that are put into place as hedges of items not
included in the trading account. Certain assets and liabilities are
shown as non-rate sensitive although the profile assumed for actual
management may be different. Trading securities are presented in
the floating rate category.
2Notional principal amounts.