TD Bank 2014 Annual Report Download - page 213

TD BANK GROUP ANNUAL REPORT 2014 FINANCIAL RESULTS 211
The following tables provide the on and off-balance sheet exposures
by risk rating for certain non-retail and retail financial assets that are
subject to the Advanced Internal Rating Based (AIRB) approach to
credit risk in the Basel III Capital Accord. Under the AIRB approach,
assets receive a risk rating based on internal models of the Bank’s
historical loss experience (by counterparty type) and on other key risk
assumptions. Refer to the Managing Risk – Credit Risk section of the
MD&A for a discussion on the credit risk rating for non-retail and retail
exposures subject to the AIRB approach.
Non-Retail Financial Assets Subject to the AIRB Approach by Risk Rating
(millions of Canadian dollars) As at
October 31, 2014
Non-
Investment investment Watch and Impaired/
grade grade classified defaulted Total
Loans
Residential mortgages1 $ 108,027 $ – $ – $ – $ 108,027
Consumer instalment and other personal1 22,888 31 – – 22,919
Business and government 27,973 28,288 664 162 57,087
Debt securities classified as loans 1,686 148 112 213 2,159
Total loans 160,574 28,467 776 375 190,192
Held-to-maturity 22,105 – – – 22,105
Securities purchased under reverse repurchase agreements 67,134 7,897 – – 75,031
Customers’ liability under acceptances 6,911 6,067 100 – 13,078
Other assets2 34,698 50 – – 34,748
Total assets 291,422 42,481 876 375 335,154
Off-balance sheet credit instruments 59,661 8,047 97 7 67,812
Total $ 351,083 $ 50,528 $ 973 $ 382 $ 402,966
October 31, 2013
Loans
Residential mortgages1 $ 107,232 $ – $ – $ – $ 107,232
Consumer instalment and other personal1 26,728 32 – – 26,760
Business and government 27,167 27,340 617 133 55,257
Debt securities classified as loans 2,504 158 120 173 2,955
Total loans 163,631 27,530 737 306 192,204
Held-to-maturity 18,521 – – – 18,521
Securities purchased under reverse repurchase agreements 52,711 9,487 – – 62,198
Customers’ liability under acceptances 3,191 3,187 20 – 6,398
Other assets2 25,930 32 – – 25,962
Total assets 263,984 40,236 757 306 305,283
Off-balance sheet credit instruments 58,886 7,151 276 10 66,323
Total $ 322,870 $ 47,387 $ 1,033 $ 316 $ 371,606
1
Includes Canada Mortgage and Housing Corporation (CMHC) insured exposures
classified as sovereign exposure under Basel III and therefore included in the
non-retail category under the AIRB approach.
2
Other assets include amounts due from banks and interest-bearing deposits
with banks.
Retail Financial Assets Subject to the AIRB Approach by Risk Rating1
(millions of Canadian dollars) As at
October 31, 2014
Low risk Normal risk Medium risk High risk Default Total
Loans
Residential mortgages2 $ 33,083 $ 27,519 $ 4,876 $ 1,518 $ 167 $ 67,163
Consumer instalment and other personal2 27,768 26,496 10,254 4,006 269 68,793
Credit card 2,417 2,238 2,286 1,411 50 8,402
Business and government3 487 3,023 2,179 1,085 67 6,841
Total loans 63,755 59,276 19,595 8,020 553 151,199
Held-to-maturity – – – – – –
Off-balance sheet credit instruments 54,143 11,836 3,088 835 4 69,906
Total $ 117,898 $ 71,112 $ 22,683 $ 8,855 $ 557 $ 221,105
October 31, 2013
Loans
Residential mortgages2 $ 27,357 $ 23,310 $ 4,736 $ 1,661 $ 160 $ 57,224
Consumer instalment and other personal2 24,509 26,538 9,020 3,813 287 64,167
Credit card 1,073 2,420 2,919 1,651 53 8,116
Business and government3 403 2,967 2,255 1,153 80 6,858
Total loans 53,342 55,235 18,930 8,278 580 136,365
Held-to-maturity – – – – – –
Off-balance sheet credit instruments 35,589 13,747 3,936 921 4 54,197
Total $ 88,931 $ 68,982 $ 22,866 $ 9,199 $ 584 $ 190,562
1
Credit exposures relating to the Bank’s insurance subsidiaries have been excluded.
The financial instruments held by the insurance subsidiaries are mainly comprised
of available-for-sale securities and securities designated at fair value through profit
or loss, which are carried at fair value on the Consolidated Balance Sheet.
2
Excludes CMHC insured exposures classified as sovereign exposure under Basel III
and therefore included in the non-retail category under the AIRB approach.
3
Business and government loans in the retail portfolio include small business loans.