TD Bank 2011 Annual Report Download - page 42

TD BANK GROUP ANNUAL REPORT 2011 MANAGEMENT’S DISCUSSION AND ANALYSIS40
SELECTED CONSOLIDATED BALANCE SHEET ITEMS
TABLE 29
GROUP FINANCIAL CONDITION
Balance Sheet Review
AT A GLANCE OVERVIEW
•
Total assets were $686 billion as at October 31, 2011, an increase
of $67 billion, or 11%, compared with October 31, 2010.
(millions of Canadian dollars) 2011 2010
Securities $ 192,538 $ 171,612
Securities purchased under reverse
repurchase agreements 53,599 50,658
Loans (net of allowance for loan losses) 303,495 269,853
Deposits 481,114 429,971
FACTORS AFFECTING ASSETS AND LIABILITIES
Total assets were $686 billion as at October 31, 2011, an increase of
$67 billion, or 11%, compared with October 31, 2010. The net increase
was primarily due to a $21 billion increase in securities, a $34 billion
increase in loans (net of allowance for loan losses) and a $7 billion
increase in other assets. The value of total assets in U.S. Personal and
Commercial Banking decreased by $5 billion due to the translation
effect of a stronger Canadian dollar.
Securities increased by $21 billion largely due to an increase in available -
for-sale securities primarily in U.S. Personal and Commercial Banking
and trading securities in Wholesale Banking. The value of securities in
U.S. Personal and Commercial Banking decreased by $2 billion due to
the translation effect of a stronger Canadian dollar.
Loans (net of allowance for loan losses) increased $34 billion
primarily driven by volume growth in Canadian Personal and Commercial
Banking and U.S. Personal and Commercial Banking. The increase in
Canadian Personal and Commercial Banking loans was largely due to
increases in residential mortgages and business and government loans.
U.S. Personal and Commercial Banking loans increased primarily due
to personal and consumer instalment loans, residential mortgages and
business and government loans. The Chrysler Financial acquisition
added $8 billion to total loans. The value of loans (net of allowance
for loan losses) in U.S. Personal and Commercial Banking decreased by
$2 billion due to the translation effect of a stronger Canadian dollar.
Other assets increased by $7 billion primarily due to an increase in the
market value of derivatives in Wholesale Banking.
Total liabilities were $640 billion as at October 31, 2011, an increase
of $62 billion, or 11%, compared with October 31, 2010. The net
increase was primarily due to a $51 billion increase in deposits and a
$13 billion increase in other liabilities. The value of total liabilities in
U.S. Personal and Commercial Banking decreased by $5 billion due to
the translation effect of a stronger Canadian dollar.
Deposits increased $51 billion primarily due to an increase in business
and government deposits in Canadian Personal and Commercial
Banking and Wholesale Banking and an increase in personal deposits
in U.S. Personal and Commercial Banking due to higher TD Ameritrade
insured deposit account balances. The value of deposits in U.S. Personal
and Commercial Banking decreased by $4 billion due to the translation
effect of a stronger Canadian dollar.
Other liabilities increased $13 billion primarily due to an increase in
derivative liabilities in Wholesale Banking.
Shareholders’ equity was $47 billion as at October 31, 2011, an
increase of $5 billion, or 11% from October 31, 2010. The net increase
was comprised primarily of a $3 billion increase in retained earnings
and a $2 billion increase in common share capital, reflecting new
common share issuance in connection with the MBNA Canada acquisi-
tion, the dividend re-investment plan and the exercise of stock options.
U.S. GAAP
See the Reconciliation of Canadian and U.S. Generally Accepted
Accounting Principles contained in the Bank’s annual report on Form
40-F for fiscal 2011 filed with the SEC and available on the Bank’s
website at http://www.td.com/investor/index.jsp and at the SEC’s
website (http://www.sec.gov).
Total assets under U.S. GAAP were $641 billion as at October 31,
2011, $45 billion lower than under Canadian GAAP. The difference was
primarily due to the netting of derivative balances which is permitted
under U.S. GAAP where there is a legal right to offset. Under Canadian
GAAP the netting of derivative balances is only permitted where there
is a legal right to offset and there is an intention to settle the contracts
simultaneously. Other differences include accounting for non-cash
collateral which requires certain non-cash collateral received in securi-
ties lending transactions to be recognized as an asset, and a corre-
sponding liability recorded for the obligation to return the collateral.
Under Canadian GAAP, non-cash collateral received as part of a security
lending transaction is not recognized in the Consolidated Balance
Sheet. Total liabilities under U.S. GAAP were $594 billion as at October
31, 2011, $44 billion lower than under Canadian GAAP. The difference
was due primarily to the netting of derivative balances under U.S. GAAP
as described above and accounting for non-cash collateral received in
securities lending transactions also as described above.