TD Bank 2014 Annual Report Download - page 43

TD BANK GROUP ANNUAL REPORT 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS 41
SELECTED CONSOLIDATED BALANCE SHEET ITEMS
TABLE 24
GROUP FINANCIAL CONDITION
Balance Sheet Review
AT A GLANCE OVERVIEW
•
Total assets were $945 billion as at October 31, 2014, an increase
of $83 billion, or 10%, compared with October 31, 2013.
(millions of Canadian dollars) As at
October 31 October 31
2014 2013
Assets
Interest-bearing deposits with banks $ 43,773 $ 28,583
Available-for-sale securities 63,008 79,544
Held-to-maturity securities 56,977 29,961
Loans (net of allowance for loan losses) 478,909 444,922
Liabilities
Trading deposits 59,334 50,967
Deposits 600,716 541,605
FACTORS AFFECTING ASSETS AND LIABILITIES
Total assets were $945 billion as at October 31, 2014, an increase
of $83 billion, or 10%, from October 31, 2013. The impact of foreign
currency translation added $19 billion, or 2%, to growth in total
assets. The net increase was primarily due to a $34 billion increase
in loans (net of allowance for loan losses), a $15 billion increase in
interest-bearing deposits with banks, an $11 billion increase in securi-
ties purchased under reverse repurchase agreements, and a $5 billion
increase in held-to-maturity securities (net of reclassification of
$22 billion from available-for-sale securities).
Interest-bearing deposits with banks increased $15 billion primarily
driven by higher U.S. Federal Reserve deposits.
Held-to-maturity securities increased $5 billion (net of reclassification
of $22 billion from available-for-sale securities) primarily due to net
purchases of securities in the U.S. Retail segment.
Securities purchased under reverse repurchase agreements
increased $11 billion primarily due to an increase in trade volumes
in Wholesale Banking.
Loans (net of allowance for loan losses) increased $34 billion
primarily driven by increases in the Canadian and U.S. Retail segments.
The increase in the Canadian Retail segment was primarily due to
growth in residential mortgages and business and government loans.
The acquisition of Aeroplan added $3 billion to the credit card loan
portfolio. The increase in the U.S. Retail segment was primarily due to
growth in business and government loans and the impact of foreign
currency translation.
Total liabilities were $889 billion as at October 31, 2014, an increase
of $78 billion, or 10%, from October 31, 2013. The impact of foreign
currency translation added $19 billion, or 2%, to growth in total
liabilities. The net increase was primarily due to a $59 billion increase
in deposits, an $11 billion increase in obligations related to securities
sold under repurchase agreements, and an $8 billion increase in trad-
ing deposits, partially offset by an $11 billion decrease in securitization
liabilities at fair value.
Trading deposits increased $8 billion primarily due to issuances
of certificates of deposits in Wholesale Banking.
Deposits increased $59 billion primarily due to an increase in personal
non-term and business and government deposits in the Canadian
Retail and U.S. Retail segments and the impact of foreign currency
translation, partially offset by a decrease in personal term deposits
in the Canadian Retail segment.
Obligations related to securities sold under repurchase agreements
increased $11 billion primarily due to an increase in trade volumes in
Wholesale Banking.
Securitization liabilities at fair value decreased $11 billion primarily
due to maturities.
Equity was $56 billion as at October 31, 2014, an increase of $5 billion,
or 9%, from October 31, 2013. The increase was primarily due to higher
retained earnings and an increase in accumulated other comprehensive
income driven by higher cumulative translation adjustment gains as
a result of foreign currency translation, partially offset by redemption
of preferred shares.
GROUP FINANCIAL CONDITION
Credit Portfolio Quality
AT A GLANCE OVERVIEW
• Loans and acceptances net of allowance for loan losses was
$492 billion, an increase of $41 billion compared with last year.
• Impaired loans net of counterparty-specific and individually
insignificant allowances was $2,244 million, an increase of
$1 million compared with last year.
• Provision for credit losses was $1,557 million, compared with
$1,631 million in the prior year.
• Total allowance for loan losses increased by $173 million
to $3,028 million in 2014.
LOAN PORTFOLIO
Overall in 2014, the Bank’s credit quality remained stable despite
uncertain economic conditions. During 2014, the Bank increased
its credit portfolio by $41 billion, or 9%, from the prior year, largely
due to volume growth in the Canadian and U.S. Retail segments.
While the majority of the credit risk exposure is related to loans
and acceptances, the Bank also engaged in activities that have
off-balance sheet credit risk. These include credit instruments and
derivative financial instruments, as explained in Note 33 to the
Consolidated Financial Statements.