TD Bank 2010 Annual Report Download - page 136

TD BANK GROUP ANNUAL REPORT 2010 FINANCIAL RESULTS134
Interest Rate Risk
(billions of Canadian dollars, except as noted) 2010
Total Over 1 Non-
Floating Within 3 3 months within year to Over interest
rate months to 1 year 1 year 5 years 5 years sensitive Total
Assets
Cash resources and other $ 4.4 $ 15.8 $ 1.0 $ 21.2 $ – $ – $ 0.5 $ 21.7
Effective yield 0.1% 1.3% –% –%
Trading securities $ 7.1 $ 7.0 $ 7.2 $ 21.3 $ 10.0 $ 5.9 $ 22.3 $ 59.5
Effective yield 1.6% 1.6% 3.2% 3.2%
Available-for-sale $ 0.2 $ 53.1 $ 11.1 $ 64.4 $ 30.8 $ 6.5 $ 0.6 $ 102.3
Effective yield 0.4% 1.1% 1.7% 2.2%
Held-to-maturity $ – $ 0.6 $ 0.7 $ 1.3 $ 8.3 $ – $ 0.1 $ 9.7
Effective yield 2.8% 3.1% 2.8% –%
Securities purchased under reverse repurchase agreements $ 5.1 $ 33.7 $ 6.9 $ 45.7 $ 3.1 $ 0.9 $ 1.0 $ 50.7
Effective yield 0.7% 0.3% 1.7% 3.0%
Loans $ 7.5 $ 154.4 $ 21.4 $ 183.3 $ 66.6 $ 14.5 $ 5.6 $ 270.0
Effective yield 4.1% 4.9% 5.2% 5.2%
Other $ 59.4 $ – $ – $ 59.4 $ – $ – $ 46.2 $ 105.6
Total assets $ 83.7 $ 264.6 $ 48.3 $ 396.6 $ 118.8 $ 27.8 $ 76.3 $ 619.5
Liabilities and shareholders’ equity
Trading deposits $ – $ 12.4 $ 9.2 $ 21.6 $ 0.1 $ 0.3 $ 1.0 $ 23.0
Effective yield 0.3% 0.3% 1.7% 2.8%
Other deposits $ 144.4 $ 51.6 $ 38.3 $ 234.3 $ 42.8 $ 2.3 $ 127.6 $ 407.0
Effective yield 1.2% 1.7% 2.9% 7.8%
Obligations related to securities sold short $ 23.7 $ – $ – $ 23.7 $ – $ – $ – $ 23.7
Obligations related to securities sold under repurchase agreements $ 1.6 $ 21.9 $ 0.3 $ 23.8 $ 1.0 $ 0.6 $ – $ 25.4
Effective yield 0.5% 1.1% 1.4% 2.8%
Subordinated notes and debentures $ – $ – $ 0.2 $ 0.2 $ 11.8 $ 0.5 $ – $ 12.5
Effective yield –% 7.6% 5.4% 5.1%
Other $ 61.4 $ – $ – $ 61.4 $ 0.6 $ – $ 23.6 $ 85.6
Shareholders’ equity $ – $ 0.4 $ – $ 0.4 $ 3.0 $ – $ 38.9 $ 42.3
Total liabilities and shareholders’ equity $ 231.1 $ 86.3 $ 48.0 $ 365.4 $ 59.3 $ 3.7 $ 191.1 $ 619.5
Net position $ (147.4) $ 178.3 $ 0.3 $ 31.2 $ 59.5 $ 24.1 $ (114.8) $ –
Interest Rate Risk by Category
(billions of Canadian dollars) Total Over 1 Non-
Floating Within 3 months within year to Over interest
rate 3 months to 1 year 1 year 5 years 5 years sensitive Total
2010
Canadian currency $ (91.1) $ 122.5 $ (4.5) $ 26.9 $ 17.0 $ 8.1 $ (60.7) $ (8.7)
Foreign currency (56.3) 55.8 4.8 4.3 42.5 16.0 (54.1) 8.7
Net position $ (147.4) $ 178.3 $ 0.3 $ 31.2 $ 59.5 $ 24.1 $ (114.8) $ –
2009
Total assets $ 73.6 $ 231.5 $ 39.9 $ 345.0 $ 106.5 $ 31.2 $ 74.5 $ 557.2
Total liabilities and shareholders’ equity 202.3 69.2 47.1 318.6 57.6 17.5 163.5 557.2
Net position $ (128.7) $ 162.3 $ (7.2) $ 26.4 $ 48.9 $ 13.7 $ (89.0) $ –
Financial and performance standby letters of credit represent
irrevocable assurances that the Bank will make payments in the event
that a customer cannot meet its obligations to third parties and they
carry the same credit risk, recourse and collateral security requirements
as loans extended to customers. See also the Guarantees section
below for further details.
Documentary and commercial letters of credit are instruments issued
on behalf of a customer authorizing a third party to draw drafts on the
Bank up to a certain amount subject to specific terms and conditions.
The Bank is at risk for any drafts drawn that are not ultimately settled
by the customer, and the amounts are collateralized by the assets to
which they relate.
Commitments to extend credit represent unutilized portions of
authorizations to extend credit in the form of loans and customers’
liability under acceptances. A discussion on the types of liquidity facilities
the Bank provides to its securitization conduits is included in Note 6.
The values of credit instruments reported below represent the
maximum amount of additional credit that the Bank could be obligated
to extend should contracts be fully utilized.
LITIGATION
The Bank and its subsidiaries are involved in various legal actions in the
ordinary course of business, many of which are loan related. Contingent
loss accruals are established when it becomes likely that the Bank
will incur an expense and the amount can be reasonably estimated.
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.
COMMITMENTS
Credit-related Arrangements
In the normal course of business, the Bank enters into various
commitments and contingent liability contracts. The primary purpose
of these contracts is to make funds available for the financing needs
of customers. The Bank’s policy for requiring collateral security with
respect to these contracts and the types of collateral security held is
generally the same as for loans made by the Bank.
CONTINGENT LIABILITIES, COMMITMENTS, PLEDGED ASSETS, COLLATERAL AND GUARANTEES
NOTE 31