TD Bank 2009 Annual Report Download - page 57

TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 MANAGEMENT’S DISCUSSION AND ANALYSIS 53
IMPAIRED LOANS NET OF SPECIFIC ALLOWANCE FOR LOAN LOSSES BY INDUSTRY SECTOR
TABLE 27
1Includes trading loans that the Bank intends to sell immediately or in the near
term with a fair value of $140 million (amortized cost of $142 million), and loans
designated as trading under the fair value option of $210 million (amortized cost
of $226 million). No allowance is recorded for trading loans or loans designated
as trading under the fair value option.
2Effective 2009, MUR mortgages, and any related credit losses, have been reclassified
from personal – residential mortgages to business and government retroactively to
2008. This is to achieve consistent reporting across all operating business segments.
3As a result of the 2009 Amendments to CICA Handbook Section 3855, certain
available-for-sale and held-to-maturity securities were reclassified to loans, as
described in the “Changes in Accounting Policies during the Current Year” section.
4The presentation of 2008 and 2007 have been reclassified to conform to the
current presentation of reporting real estate secured loans under the borrower’s
appropriate industry sector rather than as a real estate loan.
(millions of Canadian dollars, except as noted) Percentage of total
2009 20084200742009 2008420074
Gross Net Net Net
impaired Specific impaired impaired impaired
loans allowance loans loans loans
Canada
Residential mortgages1,2 $ 253 $ 14 $ 239 $ 185 $ 16 13.6% 23.0% 4.4%
Consumer instalment and other personal 273 130 143 130 97 8.2 16.1 26.5
Total residential and personal 526 144 382 315 113 21.8 39.1 30.9
Real estate
Residential 42 11 31 5–1.8 0.6 –
Non-residential 312210.1 0.3 0.3
Total real estate 45 12 33 711.9 0.9 0.3
Agriculture 1037860.4 1.0 1.6
Automotive 1349650.5 0.8 1.4
Chemical 211––0.1 ––
Financial 633220.2 0.3 0.5
Food, beverage, and tobacco 963510.2 0.6 0.3
Forestry 32 14 18 14 10 1.0 1.7 2.7
Government and public sector entities 514110.2 0.1 0.3
Health and social services 624210.2 0.3 0.3
Industrial construction and trade contractors 11385130.4 0.6 3.6
Media and entertainment 49 16 33 911.9 1.1 0.3
Metals and mining 23 5 18 13 2 1.0 1.6 0.5
Pipelines, oil, and gas 42 18 24 7–1.4 0.9 –
Retail sector 26 8 18 721.0 0.9 0.5
Sundry manufacturing and wholesale 48 13 35 20 3 2.0 2.5 0.8
Transportation 321110.1 0.1 0.3
Other 46 12 34 20 4 1.9 2.5 1.1
Total business and government2376 123 253 127 53 14.4 15.9 14.5
Total Canada 902 267 635 442 166 36.2 55.0 45.4
United States
Residential mortgages 141 20 121 57 24 6.9 7.1 6.6
Consumer instalment and other personal 103 53 50 41 22 2.9 5.1 6.0
Total residential and personal 244 73 171 98 46 9.8 12.2 12.6
Real estate
Residential 373 61 312 100 73 17.8 12.4 19.9
Non-residential 119 21 98 43 19 5.6 5.3 5.2
Total real estate 492 82 410 143 92 23.4 17.7 25.1
Agriculture 2–2210.1 0.3 0.3
Automotive 36 3 33 25 3 1.9 3.1 0.8
Chemical 523110.2 0.1 0.3
Financial 22 4 18 4101.0 0.5 2.7
Food, beverage, and tobacco 33 5 28 14 9 1.6 1.7 2.5
Forestry 37 16 21 1–1.2 0.1 –
Government and public sector entities 1019320.5 0.4 0.5
Health and social services 21 4 17 720.9 0.9 0.5
Industrial construction and trade contractors 28 7 21 951.2 1.1 1.4
Media and entertainment 24 10 14 16 1 0.8 2.0 0.3
Metals and mining 25 5 20 511.1 0.6 0.3
Pipelines, oil, and gas 42 7 35 ––2.0 ––
Power and utilities 7–7––0.4 ––
Retail sector 50 10 40 15 11 2.3 1.8 3.0
Sundry manufacturing and wholesale 716570.3 0.6 1.9
Telecommunications and cable 1–1––0.1 ––
Transportation 19 3 16 220.9 0.3 0.5
Other 60 10 50 13 7 2.9 1.6 1.9
Total business and government1921 170 751 265 154 42.8 32.8 42.0
Total United States 1,165 243 922 363 200 52.6 45.0 54.6
Other International
Business and government 33––––––
Total other international 33––––––
Total excluding debt securities classified as loans 2,070 513 1,557 805 366 88.8 100.0 100.0
Debt securities classified as loans3241 45 196 ––11.2 ––
Total impaired loans net of specific allowance $ 2,311 $ 558 $ 1,753 $ 805 $ 366 100.0% 100.0% 100.0%
Net impaired loans as a % of common equity 4.96% 2.70% 1.74%