TD Bank 2012 Annual Report Download - page 52

TD BANK GROUP ANNUAL REPORT 2012 MANAGEMENT’S DISCUSSION AND ANALYSIS50
1) Total Net Exposure by Country and Counterparty
(millions of Canadian dollars) October 31, 2012
Loans and Commitments1
Derivatives, Repos and Securities Lending2
Trading and Investment Portfolio3,4 Total
Country Corporate Sovereign Financial Total Corporate Sovereign Financial Total Corporate Sovereign Financial Total Exposure
5
GIIPS
Greece $ – $ – $ – $ – $ – $ – $ 4 $ 4 $ – $ – $ – $ – $ 4
Italy – 97 – 97 – – 3 3 17 2 19 38 138
Ireland – – – – – – 66 66 – – 1 1 67
Portugal – – – – – – 3 3 – – – – 3
Spain 70 – 48 118 14 – 19 33 11 1 203 215 366
Total GIIPS $ 70 $ 97 $ 48 $ 215 $ 14 $ – $ 95 $ 109 $ 28 $ 3 $ 223 $ 254 $ 578
Rest of Europe
France 393 – 24 417 115 366 779 1,260 54 1,690 163 1,907 3,584
Germany 659 185 80 924 262 1,167 816 2,245 124 3,929 50 4,103 7,272
Netherlands 369 – 260 629 283 25 460 768 53 4,721 1,294 6,068 7,465
Sweden – – 4 4 – – 80 80 1 380 401 782 866
Switzerland 529 – 76 605 – – 969 969 31 – 297 328 1,902
United Kingdom 1,439 483 216 2,138 476 73 2,466 3,015 101 64 4,726 4,891 10,044
Other6 15 59 25 99 32 189 323 544 13 2,002 165 2,180 2,823
Rest of Europe $ 3,404 $ 727 $ 685 $ 4,816 $ 1,168 $ 1,820 $ 5,893 $ 8,881 $ 377 $ 12,786 $ 7,096 $ 20,259 $ 33,956
Total Europe $ 3,474 $ 824 $ 733 $ 5,031 $ 1,182 $ 1,820 $ 5,988 $ 8,990 $ 405 $ 12,789 $ 7,319 $ 20,513 $ 34,534
October 31, 2011
GIIPS
Greece $ – $ – $ – $ – $ – $ – $ 3 $ 3 $ – $ – $ 1 $ 1 $ 4
Italy – – – – – – 14 14 6 217 1 224 238
Ireland – – – – 9 – 64 73 10 17 4 31 104
Portugal – – – – – – 3 3 3 – – 3 6
Spain 69 – 84 153 12 – 44 56 18 188 273 479 688
Total GIIPS $ 69 $ – $ 84 $ 153 $ 21 $ – $ 128 $ 149 $ 37 $ 422 $ 279 $ 738 $ 1,040
Rest of Europe
France 375 – 8 383 96 148 635 879 60 1,964 394 2,418 3,680
Germany 451 – 95 546 206 1,192 650 2,048 140 3,060 84 3,284 5,878
Netherlands 414 – 257 671 181 – 430 611 27 5,128 1,386 6,541 7,823
Sweden 35 – 10 45 – – 54 54 2 1,039 813 1,854 1,953
Switzerland 400 – 24 424 – – 765 765 5 381 245 631 1,820
United Kingdom 1,486 243 141 1,870 589 15 1,904 2,508 68 3,543 2,170 5,781 10,159
Other6 180 – 24 204 77 74 407 558 24 1,771 493 2,288 3,050
Rest of Europe $ 3,341 $ 243 $ 559 $ 4,143 $ 1,149 $ 1,429 $ 4,845 $ 7,423 $ 326 $ 16,886 $ 5,585 $ 22,797 $ 34,363
Total Europe $ 3,410 $ 243 $ 643 $ 4,296 $ 1,170 $ 1,429 $ 4,973 $ 7,572 $ 363 $ 17,308 $ 5,864 $ 23,535 $ 35,403
EXPOSURE TO EUROPE
TABLE 39
Sovereign Risk
The following table provides a summary of the Bank’s credit exposure
to certain European countries, including Greece, Italy, Ireland, Portugal
and Spain (GIIPS).
1 Exposures are presented net of impairment charges, where applicable. There
were no impairment charges for European exposures as at October 31, 2012
or October 31, 2011.
2
Exposures are calculated on a fair value basis and are net of collateral. Total market
value of pledged collateral is $0.9 billion (October 31, 2011 – $2.3 billion) for GIIPS
and $31.6 billion (October 31, 2011 – $19.0 billion) for the rest of Europe. Derivatives
are presented as net exposures where there is an ISDA master netting agreement.
3 Trading Portfolio exposures are net of eligible short positions. Deposits of
$2.6 billion (October 31, 2011 – $2.5 billion) are included in the Trading and
Investment Portfolio.
4 The fair values of the GIIPS exposures in Level 3 in the Trading and Investment
Portfolio were not significant as at October 31, 2012 and October 31, 2011.
5 The reported exposures do not include $0.3 billion (October 31, 2011 – $0.2 billion)
of protection the Bank purchased via credit default swaps.
6 Other European exposure is distributed across 11 countries, each of which has
a net exposure below $1.0 billion as at October 31, 2012 and October 31, 2011.