TD Bank 2002 Annual Report Download - page 72

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70
FINANCIAL RESULTS
Concentration of credit exists where a number of borrowers or
counterparties are engaged in similar activities, are located in the
same geographic area or have comparable economic characteris-
tics. Their ability to meet contractual obligations may be similarly
affected by changing economic, political or other conditions.
On-balance sheet assets
The percentage of total loans outstanding by geographic location
of borrowers was as follows at September 30.
NOTE 17 Concentration of credit risk
2002 2001
Canada183% 81%
United States 12 14
Other countries 55
1The largest concentration in Canada is Ontario at 53% (2001 – 50%).
No single industry segment accounted for more than 5% of the
total loans and customers’ liability under acceptances.
(c) The Bank and its subsidiaries are involved in various legal
actions in the ordinary course of business, many of which are
loan-related.
In management’s opinion, the ultimate disposition
of
these actions, individually or in the aggregate, will not have a
material adverse effect on the financial condition of the Bank.
(d)
In the ordinary course of business, securities and other
assets are pledged against liabilities. As at October 31,
2002
securities and other assets with a carrying value
of $23 billion
(2001 – $33 billion) were pledged in respect of securities
sold short or under repurchase
agreements. In addition, as at
October 31, 2002, assets with a carrying value of $2 billion
(2001 – $2 billion)
were deposited for the purposes of partici-
pation in clearing and payment systems and depositories or
to
have access to the facilities of central banks in foreign juris-
dictions, or as security for contract settlements with derivative
exchanges or other derivative counterparties.
(e) In the ordinary course of business, the Bank agrees to lend
unpaid customer securities, or its own securities, to borrowers on
a fully collateralized basis. Securities lent at October 31, 2002
amounted to $4 billion (2001 – $2 billion).
(millions of dollars)
2003 $ 349
2004 284
2005 229
2006 190
2007 154
2008 and thereafter 469
$ 1,675
(b) The premises and equipment net rental expense charged to
net income for the year ended October 31, 2002 was $507 mil-
lion (2001 – $489 million).
The Bank has obligations under long-term non-
cancellable
leases for premises and equipment. Future
minimum operating
lease commitments for premises and for equipment where the
annual rental is in excess of $100 thousand are detailed as follows.