TD Bank 2014 Annual Report Download - page 65

Download and view the complete annual report

Please find page 65 of the 2014 TD Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 228

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162
  • 163
  • 164
  • 165
  • 166
  • 167
  • 168
  • 169
  • 170
  • 171
  • 172
  • 173
  • 174
  • 175
  • 176
  • 177
  • 178
  • 179
  • 180
  • 181
  • 182
  • 183
  • 184
  • 185
  • 186
  • 187
  • 188
  • 189
  • 190
  • 191
  • 192
  • 193
  • 194
  • 195
  • 196
  • 197
  • 198
  • 199
  • 200
  • 201
  • 202
  • 203
  • 204
  • 205
  • 206
  • 207
  • 208
  • 209
  • 210
  • 211
  • 212
  • 213
  • 214
  • 215
  • 216
  • 217
  • 218
  • 219
  • 220
  • 221
  • 222
  • 223
  • 224
  • 225
  • 226
  • 227
  • 228

TD BANK GROUP ANNUAL REPORT 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS 63
ECONOMIC CAPITAL AND RISK WEIGHTED ASSETS BY SEGMENT
The following chart provides a breakdown of the Bank’s regulatory
capital and economic capital as at October 31, 2014. Regulatory
Capital reflects the RWA required for Pillar I risks only, namely credit,
trading market risk, and operational risk. Economic capital reflects the
Bank’s internal view of capital required for risks captured under the
regulatory framework and includes those risks identified as Basel II
Pillar II risks which are not captured within the assessment of RWA
and are described in the “Economic Capital” section of this document.
Economic capital is also assessed at a higher confidence level which is
consistent with the Bank’s overall target debt rating. The differences
between economic capital and regulatory capital in the following
figure are predominately due to the additional Pillar II risks captured
under economic capital and the variance in confidence level. For addi-
tional information on the risks highlighted below, refer to the
“Managing Risk” section of this document.
Canadian Retail
Credit Risk 65%
Market Risk 1%
Operational Risk 17%
Other Risks 17%
• Personal Deposits
• Consumer Lending
• Credit Cards and
Merchant Services
• Auto Finance
• Commercial Banking
• Small Business Banking
• Direct investing
• Advice-based
Wealth Business
• Asset Management
• Insurance
Credit Risk 66%
Market Risk 6%
Operational Risk 11%
Other Risks 17%
Economic Capital (%)
Economic Capital (%) Credit Risk 65%
Market Risk 5%
Operational Risk 7%
Other Risks1 23%
• Personal Deposits
• Consumer Lending
• Credit Cards Services
• Auto Finance
• Commercial Banking
• Small Business Banking
• Advice-based
Wealth Business
• Asset Management
• TD Ameritrade
Credit Risk 72%
Market Risk 16%
Operational Risk 7%
Other Risks 5%
• Investment Banking
and Capital Markets
• Corporate Banking
• Equity Investments
Credit Risk 55%
Market Risk 6%
Operational Risk 16%
Other Risks 23%
• Treasury and Balance
Sheet Management
• Other Control Functions
Credit Risk $ 78,583
Market Risk $ –
Operational Risk $ 21,647
Credit Risk $ 275,925
Market Risk $ 14,376
Operational Risk $ 38,092
CET1 RWA2
CET1 RWA2Credit Risk $ 146,328
Market Risk $ –
Operational Risk $ 11,432
Credit Risk $ 42,084
Market Risk $ 14,376
Operational Risk $ 4,497
Credit Risk $ 8,930
Market Risk $ –
Operational Risk $ 516
TD Bank Group
U.S. Retail1Wholesale Banking
Corporate
1 U.S. Retail includes TD Ameritrade in Other Risks
2 Amounts are in millions of Canadian dollars