TD Bank 2003 Annual Report Download - page 84

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Financial Results82
The Bank’s operations and activities are organized around the
following operating business segments: Personal and Commercial
Banking, Wholesale Banking and Wealth Management.
Personal and Commercial Banking provides financial services
to consumers and small and medium-sized businesses. The
Wholesale Banking segment provides services in the areas of
investment banking, merchant banking, mergers and acquisitions,
fixed income, foreign exchange, derivative products, money
market, equities and corporate banking in Canada and interna-
tionally. Wealth Management provides investment management
services to institutional and retail investors as well as global
self-directed brokerage services.
The Corporate segment includes non-controlling interests
in subsidiaries, certain gains on dispositions of businesses,
real estate investments, the effect of securitizations, treasury
management, general provisions for credit losses, certain taxable
equivalent adjustments, corporate level tax benefits, and residual
unallocated revenues and expenses.
Results of each business 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 and evaluates the performance of each segment based
on net income (loss) before non-cash goodwill and intangible
amortization (net income (loss) – cash basis).
2003 2002
Canada 61% 51%
United States 30 39
United Kingdom 65
Other countries 35
2003 2002
Financial institutions 44% 39%
Government 710
Utilities 68
Oil and gas 56
Telecommunications 55
2003 2002
Europe – excluding the United Kingdom 28% 32%
United States 29 32
Canada 22 16
United Kingdom 913
Other countries 12 7
(b) Derivative financial instruments
At October 31, 2003, the current replacement cost of derivative
financial instruments amounted to $29,701 million (2002 –
$26,805 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, 2003, the Bank had commitments and contingent
liability contracts in the amount of $55,732 million (2002 –
$77,833 million). Included are commitments to extend credit
totalling $48,703 million (2002 – $67,569 million), of which the
credit risk was dispersed as follows at October 31.
NOTE 21 Segmented information
The largest concentration by counterparty type was with financial
institutions, which accounted for 87% of the total (2002 – 87%).
The second largest concentration was with governments which
accounted for 6% of the total. No other industry segment
exceeded 3% of the total.