TD Bank 2009 Annual Report Download - page 61

TD BANK FINANCIAL GROUP ANNUAL REPORT 2009 MANAGEMENT’S DISCUSSION AND ANALYSIS 57
(millions of Canadian dollars, except as noted) Percentage of total
2009 2008 2007 2009 2008 2007
Canada
Atlantic provinces $25$ 21 $ 18 1.0% 2.0% 2.8%
British Columbia168 44 36 2.7 4.1 5.6
Ontario1824 526 419 33.2 49.5 64.9
Prairies178 43 36 3.2 4.0 5.6
Québec 69 52 38 2.8 4.9 5.9
Total Canada21,064 686 547 42.9 64.5 84.8
United States
Connecticut 38 3161.5 0.3 2.5
Florida 41 4 (3) 1.7 0.4 (0.5)
Maine 23 10 8 0.9 0.9 1.2
Massachusetts 51 21 17 2.1 2.0 2.7
New Hampshire 19 630.8 0.6 0.5
New Jersey 110 64 20 4.5 6.0 3.1
New York 90 57 20 3.6 5.4 3.1
Pennsylvania 71 16 6 2.9 1.5 0.9
Vermont 6210.2 0.2 0.2
Washington D.C. 12––0.2 –
Others 53 63 9 2.1 5.9 1.4
Total United States2503 248 97 20.3 23.4 15.1
Other International
Europe –– (1) –– (0.2)
Other 3––0.1 ––
Total other international 3– (1) 0.1 – (0.2)
Total excluding debt securities classified as loans 1,570 934 643 63.3 87.9 99.7
Debt securities classified as loans344 ––1.8 ––
Total specific provision 1,614 934 643 65.1 87.9 99.7
General provision
General provision – loans 660 129 2 26.6 12.1 0.3
General provision – debt securities classified as loans3206 ––8.3 ––
Total general provision 866 129 2 34.9 12.1 0.3
Total provision for credit losses $ 2,480 $ 1,063 $ 645 100.0% 100.0% 100.0%
Provision for credit losses as a % of net average loans4
Canada
Residential mortgages 0.01% 0.02% 0.01%
Personal 1.11 0.88 0.83
Business and other 0.40 0.17 0.10
Total Canada 0.61 0.41 0.39
United States
Residential mortgages 0.27 0.32 –
Personal 1.37 0.76 0.56
Business and other 0.68 0.59 0.26
Total United States 0.79 0.61 0.31
Other international 0.05 – (0.04)
Debt securities classified as loans30.35 ––
General provision
General provision – loans 0.27 0.06 –
General provision – debt securities classified as loans31.63 ––
Total provision for credit losses as a % of net average loans 0.97% 0.50% 0.37%
PROVISION FOR CREDIT LOSSES BY GEOGRAPHY
TABLE 31
1The territories are included as follows: Yukon is included in British Columbia;
Nunavut is included in Ontario; and Northwest Territories is included in the
Prairies region.
2Includes 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.
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.
4Includes customers’ liability under acceptances.
Non-Prime Loans
As at October 31, 2009, VFC had approximately $1.5 billion (2008 –
$1.2 billion) gross exposure to non-prime loans which mainly consist of
automotive loans originated in Canada. The credit loss rate, which is
an indicator of credit quality and is defined as the average PCL divided
by the average month-end loan balance, was approximately 6.0%
(2008 – approximately 5.8%) on an annual basis. The portfolio
continues to perform as expected. These loans are recorded at
amortized cost. See Note 3 to the Consolidated Financial Statements
for further information regarding the accounting for loans and
related credit losses.