TD Bank 2014 Annual Report Download - page 95

TD BANK GROUP ANNUAL REPORT 2014 MANAGEMENT’S DISCUSSION AND ANALYSIS 93
In the course of the Bank’s day-to-day operations, securities and other
assets are pledged to obtain funding and participate in clearing and/or
settlement systems. A summary of encumbered and unencumbered
assets is presented in the following table.
(billions of Canadian dollars, except as noted) As at
October 31, 2014
Encumbered2
Unencumbered
Encumbered
Pledged as Available as Total Assets as a %
Collateral3 Other4 Collateral5 Other6 Assets of Total Assets
Cash and due from banks $ – $ – $ – $ 2.8 $ 2.8 –%
Interest-bearing deposits with banks 2.1 2.5 35.1 4.1 43.8 0.5
Securities, trading loans, and other7 55.5 9.8 147.4 13.1 225.8 6.9
Derivatives – – – 55.4 55.4 –
Securities purchased under reverse repurchase agreements8 – – – 75.0 75.0 –
Loans, net of allowance for loan losses 15.1 48.2 75.4 340.2 478.9 6.7
Customers’ liability under acceptances – – – 13.1 13.1 –
Investment in TD Ameritrade – – – 5.6 5.6 –
Goodwill – – – 14.2 14.2 –
Other intangibles – – – 2.7 2.7 –
Land, buildings, equipment, and other depreciable assets – – – 4.9 4.9 –
Deferred tax assets – – – 2.0 2.0 –
Other assets9 – – – 20.5 20.5 –
Total on-balance sheet assets 72.7 60.5 257.9 553.6 $ 944.7 14.1%
Off-balance sheet items10
Securities purchased under reverse repurchase agreements 66.5 – 29.0 (75.0)
Securities borrowing and collateral received 16.4 – 7.1 –
Margin loans and other client activity 1.7 – 11.0 (7.0)
Total off-balance sheet items 84.6 – 47.1 (82.0)
Total $ 157.3 $ 60.5 $ 305.0 $ 471.6
October 31, 2013
Cash and due from banks $ – $ – $ – $ 3.6 $ 3.6 –%
Interest-bearing deposits with banks 2.1 1.3 21.6 3.6 28.6 0.4
Securities, trading loans, and other7 53.9 10.1 135.7 18.2 217.9 7.4
Derivatives – – – 49.5 49.5 –
Securities purchased under reverse repurchase agreements8 – – – 64.3 64.3 –
Loans, net of allowance for loan losses 15.0 55.1 67.0 307.8 444.9 8.1
Customers’ liability under acceptances – – – 6.4 6.4 –
Investment in TD Ameritrade – – – 5.3 5.3 –
Goodwill – – – 13.3 13.3 –
Other intangibles – – – 2.5 2.5 –
Land, buildings, equipment, and other depreciable assets – – – 4.6 4.6 –
Deferred tax assets – – – 1.8 1.8 –
Other assets9 – – – 19.3 19.3 –
Total on-balance sheet assets 71.0 66.5 224.3 500.2 $ 862.0 15.9%
Off-balance sheet items10
Securities purchased under reverse repurchase agreements 51.8 – 30.8 (64.3)
Securities borrowing and collateral received 17.7 – 6.0 –
Margin loans and other client activity 1.3 – 11.5 (7.4)
Total off-balance sheet items 70.8 – 48.3 (71.7)
Total $ 141.8 $ 66.5 $ 272.6 $ 428.5
ENCUMBERED AND UNENCUMBERED ASSETS1
TABLE 64
1 Certain comparative amounts have been restated to conform with the presentation
adopted in the current year.
2 Asset encumbrance has been analyzed on an individual asset basis. Where a partic-
ular asset has been encumbered and TD has holdings of the asset both on-balance
sheet and off-balance sheet, it is assumed for the purpose of this disclosure that the
on-balance sheet holding is encumbered ahead of the off-balance sheet holding.
3 Represents assets that have been posted externally to support the Bank’s liabilities
and day-to-day operations including securities related to repurchase agreements,
securities lending, clearing and payment systems, and assets pledged for derivative
transactions. Also includes assets that have been pledged supporting Federal Home
Loan Bank (FHLB) activity.
4 Assets supporting TD’s funding activities, assets pledged against securitization
liabilities, and assets held by consolidated securitization vehicles or in pools for
covered bond issuance, and assets covering short sales.
5 Assets that are considered readily available in their current legal form to generate
funding or support collateral needs. This category includes reported FHLB assets
that remain unutilized and held-to-maturity securities that are available for
collateral purposes however not regularly utilized in practice.
6 Assets that cannot be used to support funding or collateral requirements in their
current form. This category includes those assets that are potentially eligible as
funding program collateral (for example, CMHC insured mortgages that can be
securitized into NHA MBS).
7 Securities include trading loans, securities, and other financial assets designated
at fair value through profit or loss, available-for-sale securities, and held-to-
maturity securities.
8
Assets reported in Securities purchased under reverse repurchase agreements repre-
sent the value of these transactions, and not the value of the collateral received.
9 Other assets include amounts receivable from brokers, dealers, and clients.
10 Off-balance sheet items include the collateral value from the securities received
under reverse repurchase, securities borrowing, margin loans, and other client
activity. The loan value from the reverse repurchase transactions and margin
loans/client activity is deducted from the on-balance sheet Unencumbered –
Other category.