TD Bank 2002 Annual Report Download - page 73

Download and view the complete annual report

Please find page 73 of the 2002 TD Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 95

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95

71
FINANCIAL RESULTS
The Bank’s operations and activities are organized around the
following operating business segments: TD Canada Trust,
TD Securities and TD Wealth Management.
TD Canada Trust provides financial services to consumers
and small and medium-sized businesses. TD Securities provides
services in the areas of investment banking, merchant banking,
mergers and acquisitions, fixed income, foreign exchange,
derivative products, high yield, money market, equities and
corporate banking. TD Wealth Management provides investment
management services to institutional and retail investors as
well as global self-directed brokerage services.
The Other category includes non-controlling interests in sub-
sidiaries, certain gains on dispositions of businesses, real estate
investments, the effect of securitizations, treasury management,
general provisions for credit losses, certain taxable equivalent
adjustments and corporate level tax benefits, restructuring costs
and residual unallocated revenues and expenses.
Results of each segment reflect revenues, expenses, assets
and liabilities generated by the businesses in that segment.
Transfer pricing of funds sold or purchased, and of commissions
for services provided are generally at market rates. The Bank
measures the performance of each segment based on net income
(loss) before non-cash goodwill and intangible amortization and
certain special items (net income (loss) – cash basis), return on
equity and economic profit.
NOTE 18 Segmented information
2002 2001
Canada 51% 45%
United States 39 42
United Kingdom 57
Other countries 56
2002 2001
Financial institutions 39% 34%
Utilities 11 13
Government 10 8
Oil and gas 66
Telecommunications 57
2002 2001
Europe – excluding the United Kingdom 32% 27%
United States 32 31
Canada 16 21
United Kingdom 13 12
Other countries 79
The largest concentration by counterparty type was with financial
institutions, which accounted for 87% of the total (2001 – 84%).
No other industry segment exceeded 5% of the total.
(b) Derivative financial instruments
At October 31, 2002, the current replacement cost of derivative
financial instruments amounted to $26,805 million (2001 –
$24,822 million). Based on the location of the ultimate counter-
party, the credit risk was allocated as follows at October 31.
Of the commitments to extend credit, industry segments which
equalled or exceeded 5% of the total concentration were as
follows at October 31.
Off-balance sheet financial instruments
(a) Credit instruments
At October 31, 2002, the Bank had commitments and contingent
liability contracts in the amount of $77,833 million (2001 –
$87,249 million). Included are commitments to extend credit
totalling $67,569 million (2001 – $77,357 million), of which
the credit risk was dispersed as follows at October 31.