TD Bank 2011 Annual Report Download - page 47

TD BANK GROUP ANNUAL REPORT 2011 MANAGEMENT’S DISCUSSION AND ANALYSIS 45
(millions of Canadian dollars, except as noted) Percentage of total
2011 2010 2009 2011 2010 2009
Gross Net Net Net
impaired Specific impaired impaired impaired
loans
allowance loans loans loans
Canada
Residential mortgages3,4 $ 331 $ 15 $ 316 $ 290 $ 239 17.8% 16.9% 15.3%
Credit card, consumer instalment and other personal 361 137 224 175 143 12.7 10.2 9.2
Total personal 692 152 540 465 382 30.5 27.1 24.5
Real estate
Residential 21 8 13 21 31 0.7 1.2 2.0
Non-residential 7 1 6 1 2 0.3 0.1 0.1
Total real estate 28 9 19 22 33 1.0 1.3 2.1
Agriculture 7 2 5 4 7 0.3 0.2 0.4
Automotive 1 – 1 4 9 0.1 0.2 0.6
Financial 4 3 1 2 3 0.1 0.1 0.2
Food, beverage, and tobacco 1 – 1 2 1 0.1 0.1 0.1
Forestry – – – – 18 – – 1.2
Government, public sector entities and education5 5 2 3 – 4 0.1 – 0.3
Health and social services5 3 2 1 3 3 0.1 0.2 0.2
Industrial construction and trade contractors 16 9 7 6 8 0.4 0.3 0.5
Metals and mining 3 – 3 10 18 0.1 0.6 1.2
Pipelines, oil, and gas 3 1 2 11 24 0.1 0.7 1.5
Professional and other services5 9 6 3 6 27 0.1 0.3 1.7
Retail sector 32 11 21 13 20 1.2 0.9 1.3
Sundry manufacturing and wholesale 20 6 14 17 36 0.8 1.0 2.3
Telecommunications, cable and media5 2 1 1 9 33 0.1 0.5 2.1
Transportation 5 4 1 2 1 0.1 0.1 0.1
Other5 18 13 5 4 8 0.3 0.2 0.5
Total business and government4 157 69 88 115 253 5.0 6.7 16.3
Total Canada 849 221 628 580 635 35.5 33.8 40.8
United States
Residential mortgages 178 17 161 138 121 9.1 8.0 7.8
Credit card, consumer instalment and other personal 122 40 82 54 50 4.7 3.2 3.2
Total personal 300 57 243 192 171 13.8 11.2 11.0
Real estate
Residential 287 37 250 297 312 14.1 17.3 20.0
Non-residential 321 39 282 237 98 16.0 13.8 6.3
Total real estate 608 76 532 534 410 30.1 31.1 26.3
Agriculture 4 – 4 3 2 0.2 0.2 0.1
Automotive 23 3 20 32 33 1.1 1.9 2.1
Financial 20 4 16 29 18 0.9 1.7 1.2
Food, beverage, and tobacco 7 1 6 6 2 0.3 0.3 0.1
Forestry 2 1 1 2 21 0.1 0.1 1.4
Government, public sector entities and education5 8 1 7 6 9 0.4 0.3 0.6
Health and social services5 52 2 50 26 11 2.9 1.5 0.7
Industrial construction and trade contractors 42 8 34 37 21 1.9 2.2 1.4
Metals and mining 20 10 10 19 20 0.6 1.1 1.3
Pipelines, oil, and gas – – – 2 35 – 0.1 2.2
Power and utilities 7 1 6 6 7 0.3 0.3 0.4
Professional and other services5 46 7 39 35 43 2.2 2.1 2.8
Retail sector 106 16 90 100 66 5.1 5.8 4.2
Sundry manufacturing and wholesale5 32 10 22 38 9 1.3 2.2 0.6
Telecommunications, cable and media5 7 1 6 24 15 0.3 1.4 1.0
Transportation 53 7 46 35 16 2.6 2.1 1.0
Other5 10 3 7 9 13 0.4 0.5 0.8
Total business and government4 1,047 151 896 943 751 50.7 54.9 48.2
Total United States 1,347 208 1,139 1,135 922 64.5 66.1 59.2
International
Business and government – – – 1 – – 0.1 –
Total international – – – 1 – – 0.1 –
Total1,2 $ 2,196 $ 429 $ 1,767 $ 1,716 $ 1,557 100.0% 100.0% 100.0%
Net impaired loans as a % of common equity 4.07% 4.41% 4.41%
IMPAIRED LOANS NET OF SPECIFIC ALLOWANCE BY INDUSTRY SECTOR1,2
TABLE 34
1 Excludes FDIC covered loans and other acquired credit-impaired loans. For
additional information refer to the “Exposure to Acquired Credit-Impaired Loans”
discussion and table in this section of the document and Note 4 to the 2011
Consolidated Financial Statements.
2 Excludes debt securities classified as loans. For additional information refer to
the “Exposure to Non-agency Collaterized Mortgage Obligations” section of this
document and Note 4 to the 2011 Consolidated Financial Statements.
3 Includes trading loans that the Bank intends to sell immediately or in the near
term with a fair value of $253 million (2010 – $188 million) and amortized cost of
$253 million (2010 – $188 million), and loans designated as trading under the fair
value option of $14 million (2010 - $85 million) and amortized cost of $5 million
(2010 – $86 million). No allowance is recorded for trading loans or loans designated
as trading under the fair value option.
4 Effective 2009, MUR mortgages, and any related credit losses, have been
reclassified from personal – residential mortgages to business & government
retroactively to 2008. This is to achieve consistent reporting across all operating
business segments.
5 Certain industry categories have been consolidated and certain amounts have been
reclassified in line with accepted norms and thresholds for industry disclosure.