TD Bank 2014 Annual Report Download - page 54

TD BANK GROUP ANNUAL REPORT 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS52
(millions of Canadian dollars, except as noted) For the years ended Percentage of total
October 31 October 31 October 31 October 31 October 31 October 31
2014 2013 2012 2014 2013 2012
Canada
Atlantic provinces $ 25 $ 24 $ 23 1.6% 1.5% 1.3%
British Columbia2 49 56 55 3.1 3.4 3.0
Ontario2 684 739 616 43.9 45.3 34.3
Prairies2 70 72 72 4.5 4.4 4.0
Quebec 45 48 70 2.9 3.0 3.9
Total Canada3 873 939 836 56.0 57.6 46.5
United States
Carolinas (North and South) 36 17 12 2.3 1.0 0.7
Florida 43 28 17 2.8 1.7 0.9
New England4 147 120 208 9.4 7.4 11.6
New Jersey 98 74 92 6.3 4.5 5.1
New York 89 61 75 5.7 3.7 4.2
Pennsylvania 42 22 73 2.7 1.4 4.1
Other 127 158 142 8.2 9.7 7.9
Total United States3 582 480 619 37.4 29.4 34.5
International
Other – – – – – –
Total international – – – – – –
Total excluding other loans 1,455 1,419 1,455 93.4 87.0 81.0
Other loans 29 62 120 1.9 3.8 6.7
Total counterparty-specific and individually insignificant provision 1,484 1,481 1,575 95.3 90.8 87.7
Incurred but not identified provision 73 150 220 4.7 9.2 12.3
Total provision for credit losses $ 1,557 $ 1,631 $ 1,795 100.0% 100.0% 100.0%
Provision for credit losses as a % of average October 31 October 31 October 31
net loans and acceptances5 2014 2013 2012
Canada
Residential mortgages 0.01% 0.01% 0.01%
Credit card, consumer instalment and other personal 0.72 0.80 0.67
Business and government 0.13 0.12 0.21
Total Canada 0.25 0.29 0.27
United States
Residential mortgages 0.04 0.06 0.15
Credit card, consumer instalment and other personal 1.54 1.07 1.30
Business and government 0.03 0.28 0.67
Total United States 0.49 0.48 0.75
International – – –
Total excluding other loans 0.31 0.33 0.37
Other loans 0.59 0.85 1.18
Total counterparty-specific and individually insignificant provision 0.32 0.34 0.39
Incurred but not identified provision 0.02 0.03 0.06
Total provision for credit losses as a % of average
net loans and acceptances 0.33% 0.38% 0.45%
PROVISION FOR CREDIT LOSSES BY GEOGRAPHY1
TABLE 36
1 Primarily based on the geographic location of the customer’s address.
2 The territories are included as follows: Yukon is included in British Columbia; Nuna-
vut is included in Ontario; and Northwest Territories is included in the Prairies region.
3 Excludes trading loans with a fair value of $10 billion as at October 31, 2014
(October 31, 2013 – $10 billion), and amortized cost of $10 billion as at October 31,
2014 (October 31, 2013 – $10 billion), and loans designated at fair value through
profit or loss of $5 million as at October 31, 2014 (October 31, 2013 – $9 million).
No allowance is recorded for trading loans or loans designated at fair value
through profit or loss.
4 The states included in New England are as follows: Connecticut, Maine,
Massachusetts, New Hampshire, and Vermont.
5 Includes customers’ liability under acceptances.
NON-PRIME LOANS
As at October 31, 2014, the Bank had approximately $2.4 billion
(October 31, 2013 – $2.4 billion), gross exposure to non-prime loans,
which primarily consists of automotive loans originated in Canada. The
credit loss rate, which is an indicator of credit quality and is defined as
the annual PCL divided by the average month-end loan balance, was
approximately 3.70% on an annual basis (October 31, 2013 – 3.38%).
The portfolio continues to perform as expected. These loans are
recorded at amortized cost.