TD Bank 2010 Annual Report Download - page 140

TD BANK GROUP ANNUAL REPORT 2010 FINANCIAL RESULTS138
historical loss experience (by counterparty type) and on other key risk
assumptions. Refer to the Managing Risk – Credit Risk section of the
MD&A for a discussion on the credit risk rating for non-retail and retail
exposures subject to the AIRB approach.
The following tables provide the on and off-balance sheet exposures
by risk rating for certain non-retail and retail financial assets that are
subject to the Advanced Internal Rating Based (AIRB) approach to
credit risk in the Basel II Capital Accord. Under the AIRB approach,
assets receive a risk rating based on internal models of the Bank’s
Non-Retail Financial Assets Subject to the AIRB Approach by Risk Rating
(millions of Canadian dollars) Non-
Investment investment Watch and Impaired/
grade grade classified defaulted Total
2010
Loans
Residential mortgages $ 37,285 $ – $ – $ – $ 37,285
Consumer instalment and other personal 32,616 153 – – 32,769
Business and government 17,648 16,668 719 224 35,259
Debt securities classified as loans 6,414 151 495 – 7,060
Total loans 93,963 16,972 1,214 224 112,373
Securities – held-to-maturity 9,715 – – – 9,715
Securities purchased under reverse repurchase agreement 42,146 6,359 113 – 48,618
Customers’ liability under acceptances 3,948 3,699 101 4 7,752
Other assets1 18,684 4 1 – 18,689
Total assets 168,456 27,034 1,429 228 197,147
Off-balance sheet credit instruments 44,612 5,071 174 9 49,866
Total $ 213,068 $ 32,105 $ 1,603 $ 237 $ 247,013
2009
Loans
Residential mortgages $ 38,681 $ – $ – $ – $ 38,681
Consumer instalment and other personal 31,951 235 – – 32,186
Business and government 16,389 15,675 924 365 33,353
Debt securities classified as loans 9,057 683 733 199 10,672
Total loans 96,078 16,593 1,657 564 114,892
Securities – held-to-maturity 9,662 – – – 9,662
Securities purchased under reverse repurchase agreement 27,094 3,690 – – 30,784
Customers’ liability under acceptances 5,040 4,798 96 5 9,939
Other assets1 15,785 52 4 – 15,841
Total assets 153,659 25,133 1,757 569 181,118
Off-balance sheet credit instruments 42,911 5,091 232 29 48,263
Total $ 196,570 $ 30,224 $ 1,989 $ 598 $ 229,381
Retail Financial Assets Subject to the AIRB Approach by Risk Rating1
(millions of Canadian dollars) Low risk Normal risk Medium risk High risk Default Total
2010
Loans
Residential mortgages $ 8,069 $ 10,156 $ 4,556 $ 1,230 $ 112 $ 24,123
Consumer instalment and other personal 6,550 22,166 17,047 5,060 241 51,064
Credit card 714 2,012 2,848 2,301 61 7,936
Business and government 218 1,944 2,088 1,355 71 5,676
Total loans 15,551 36,278 26,539 9,946 485 88,799
Total assets 15,551 36,278 26,539 9,946 485 88,799
Off-balance sheet credit instruments 17,680 16,179 6,125 1,432 5 41,421
Total $ 33,231 $ 52,457 $ 32,664 $ 11,378 $ 490 $ 130,220
2009
Loans
Residential mortgages $ 6,586 $ 7,434 $ 4,257 $ 1,106 $ 118 $ 19,501
Consumer instalment and other personal 5,976 20,443 14,442 3,626 196 44,683
Credit card 655 1,831 2,554 2,198 71 7,309
Business and government 184 1,791 2,037 1,371 95 5,478
Total loans 13,401 31,499 23,290 8,301 480 76,971
Total assets 13,401 31,499 23,290 8,301 480 76,971
Off-balance sheet credit instruments 16,960 15,836 6,197 1,410 6 40,409
Total $ 30,361 $ 47,335 $ 29,487 $ 9,711 $ 486 $ 117,380
1 Other assets include amounts due from banks and interest-bearing deposits
with banks.
1 Credit exposures relating to the Bank’s insurance subsidiaries have been excluded.
The financial instruments held by the insurance subsidiaries are mainly comprised
of available-for-sale securities and securities designated as trading under the fair
value option, which are carried at fair value on the Consolidated Balance Sheet.