TD Bank 2014 Annual Report Download - page 188

TD BANK GROUP ANNUAL REPORT 2014 FINANCIAL RESULTS186
NON-CONTROLLING INTERESTS IN SUBSIDIARIES
NOTE 22
Non-Controlling Interests in Subsidiaries
(millions of Canadian dollars) As at
October 31 October 31
2014 2013
REIT preferred stock, Series A $ 556 $ 515
TD Capital Trust III Securities – Series 20081 993 993
Total $ 1,549 $ 1,508
1
Refer to Note 20 for a description of the TD Capital Trust III securities.
REIT PREFERRED STOCK, FIXED-TO-FLOATING RATE
EXCHANGEABLE NON-CUMULATIVE PERPETUAL PREFERRED
STOCK, SERIES A
A real estate investment trust, Northgroup Preferred Capital Corpora-
tion (Northgroup REIT), a subsidiary of TD Bank, N.A., issued 500,000
shares of Fixed-to-Floating Rate Exchangeable Non-Cumulative Perpetual
Preferred Stock, Series A (Series A shares). Each Series A share is entitled
to semi-annual non-cumulative cash dividends, if declared, at a per
annum rate of 6.378% until October 17, 2017, and at a per annum
rate of three-month LIBOR plus 1.1725% payable quarterly thereafter.
The Series A shares are redeemable by Northgroup REIT, subject to
regulatory consent, at a price of US$1,000 plus a make-whole amount
at any time after October 15, 2012, and prior to October 15, 2017,
and at a price of US$1,000 per Series A share on October 15, 2017,
and every five years thereafter. Each Series A share may be automati-
cally exchanged, without the consent of the holders, into a newly
issued share of preferred stock of TD Bank, N.A. on the occurrence
of certain events.
TRADING-RELATED INCOME
NOTE 23
Trading assets and liabilities, including trading derivatives, certain
securities and loans held within a trading portfolio that are designated
at fair value through profit or loss, trading loans and trading deposits,
are measured at fair value, with gains and losses recognized on the
Consolidated Statement of Income.
Trading-related income comprises Net interest income, Trading
income (losses), and income from financial instruments designated
at fair value through profit or loss that are managed within a trading
portfolio, all recorded on the Consolidated Statement of Income. Net
interest income arises from interest and dividends related to trading
assets and liabilities, and is reported net of interest expense and
income associated with funding these assets and liabilities in the
following table. Trading income (loss) includes realized and unrealized
gains and losses on trading assets and liabilities. Realized and unreal-
ized gains and losses on financial instruments designated at fair value
through profit or loss are included in Non-interest income on the
Consolidated Statement of Income.
Trading-related income excludes underwriting fees and commissions
on securities transactions, which are shown separately on the Consoli-
dated Statement of Income.
Trading-related income by product line depicts trading income for
each major trading category.
Trading-Related Income
(millions of Canadian dollars) For the years ended October 31
2014 2013 2012
Net interest income (loss) $ 1,337 $ 1,231 $ 1,050
Trading income (loss) (349) (279) (41)
Financial instruments designated at fair value through profit or loss1 (9) (6) 10
Total $ 979 $ 946 $ 1,019
By product
Interest rate and credit portfolios 601 557 534
Foreign exchange portfolios 385 368 374
Equity and other portfolios 2 27 101
Financial instruments designated at fair value through profit or loss1 (9) (6) 10
Total $ 979 $ 946 $ 1,019
1
Excludes amounts related to securities designated at fair value through profit
or loss that are not managed within a trading portfolio, but which have been
combined with derivatives to form economic hedging relationships.