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Loans
 12 Months Ended
Oct. 31, 2025
Text Block [Abstract]  
Loans
Note 5
  
Loans
(1)(2)
 
 
$ millions, as at October 31
                              
2025
                                               2024         
    
Gross
amount
    
Stage 3
allowance
    
Stages 1
and 2
allowance
    
Total
allowance
    
Net
total
    
Allowances
as a % of
gross loans
            Gross
amount		     Stage 3
allowance		     Stages 1
and 2
allowance		     Total
allowance		     Net
total		     Allowances
as a % of
gross loans		  
Residential mortgages
(
3
)
  
$
287,033
 
  
$
306
 
  
$
268
 
  
$
574
 
  
$
286,459
 
  
 
0.2
 % 
     $ 280,672     $ 234     $ 215     $ 449     $ 280,223       0.2  % 
Personal
  
 
47,866
 
  
 
185
 
  
 
971
 
  
 
1,156
 
  
 
46,710
 
  
 
2.4
 
       46,681       190       752       942       45,739       2.0  
Credit card
  
 
21,581
 
  
 
–
 
  
 
942
 
  
 
942
 
  
 
20,639
 
  
 
4.4
 
       20,551       –       902       902       19,649       4.4  
Business and government
(
3
)
(
4
)
  
 
237,416
 
  
 
491
 
  
 
1,229
 
  
 
1,720
 
  
 
235,696
 
  
 
0.7
 
             214,305       392       1,232       1,624       212,681       0.8  
Total
  
$
 593,896
 
  
$
 982
 
  
$
 3,410
 
  
$
 4,392
 
  
$
 589,504
 
  
 
0.7
 % 
           $  562,209     $  816     $  3,101     $  3,917     $  558,292       0.7  % 
 
(1)
Loans are net of unearned income of $1,017 million (2024: $815 million).
(2)
Includes gross loans of $136.5 billion (2024: $120.4 billion) denominated in U.S. dollars and $13.7 billion (2024: $11.2 billion) denominated in other foreign currencies.
(3)
Includes $3 million of residential mortgages (202
4
: $3 million) and $560 million of business and government loans (202
4
: $221 million) that are measured and designated at FVTPL.
(4)
Includes customers’ liability under acceptances of $10 million (2024: $6 million) in business and government loans. Prior year amounts have been revised to conform to the presentation adopted in 2025.
 
 
Allowance for credit losses
The following table provides a reconciliation of the opening balance to the closing balance of the ECL allowance:
 
$ millions, as at or for the year ended October 31
 
  
 
 
2025
 
 
 
Stage 1
 
 
Stage 2
 
 
Stage 3
 
 
 
 
  
 
Collective provision
12-month ECL

performing
 
 
Collective provision
lifetime ECL
performing
 
 
Collective and
individual provision
lifetime ECL
credit-impaired
 
 
Total
 
Residential mortgages
 
 
 
 
Balance at beginning of year
  
$
89
 
   
$
126
 
   
$
234
 
   
$
449
 
Provision for (reversal of) credit losses
           
Originations net of repayments and other derecognitions
(1)
  
 
15
 
   
 
(23
)
   
 
(73
)
   
 
(81
)
Changes in model
  
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
Net remeasurement
(2)
  
 
(134
)
   
 
176
 
   
 
209
 
   
 
251
 
Transfers
(2)
           
– to
12-month
ECL
  
 
141
 
   
 
(133
)
   
 
(8
)
   
 
–
 
– to lifetime ECL performing
  
 
(10
)
   
 
31
 
   
 
(21
)
   
 
–
 
– to lifetime ECL credit-impaired
  
 
–
 
   
 
(9
)
   
 
9
 
   
 
–
 
Total provision for (reversal of) credit losses
(3)
  
 
12
 
   
 
42
 
   
 
116
 
   
 
170
 
Write-offs
(4)
  
 
–
 
   
 
–
 
   
 
(12
)
   
 
(12
)
Recoveries
  
 
–
 
   
 
–
 
   
 
6
 
   
 
6
 
Interest income on impaired loans
  
 
–
 
   
 
–
 
   
 
(36
)
   
 
(36
)
Foreign exchange and other
  
 
(1
)
   
 
–
 
   
 
(2
)
   
 
(3
)
Balance at end of year
  
$
100
 
   
$
168
 
   
$
306
 
   
$
574
 
Personal
           
Balance at beginning of year
  
$
247
 
   
$
546
 
   
$
190
 
   
$
983
 
Provision for (reversal of) credit losses
           
Originations net of repayments and other derecognitions
(1)
  
 
40
 
   
 
(45
)
   
 
(25
)
   
 
(30
)
Changes in model
  
 
(15
)
   
 
97
 
   
 
–
 
   
 
82
 
Net remeasurement
(2)
  
 
(575
)
   
 
795
 
   
 
484
 
   
 
704
 
Transfers
(2)
           
– to
12-month
ECL
  
 
623
 
   
 
(616
)
   
 
(7
)
   
 
–
 
– to lifetime ECL performing
  
 
(68
)
   
 
90
 
   
 
(22
)
   
 
–
 
– to lifetime ECL credit-impaired
  
 
(4
)
   
 
(70
)
   
 
74
 
   
 
–
 
Total provision for (reversal of) credit losses
(3)
  
 
1
 
   
 
251
 
   
 
504
 
   
 
756
 
Write-offs
(4)
  
 
–
 
   
 
–
 
   
 
(571
)
   
 
(571
)
Recoveries
  
 
–
 
   
 
–
 
   
 
74
 
   
 
74
 
Interest income on impaired loans
  
 
–
 
   
 
–
 
   
 
(8
)
   
 
(8
)
Foreign exchange and other
  
 
(1
)
   
 
6
 
   
 
(4
)
   
 
1
 
Balance at end of year
  
$
247
 
   
$
803
 
   
$
185
 
   
$
1,235
 
Credit card
           
Balance at beginning of year
  
$
295
 
   
$
660
 
   
$
–
 
   
$
955
 
Provision for (reversal of) credit losses
           
Originations net of repayments and other derecognitions
(1)
  
 
36
 
   
 
(33
)
   
 
–
 
   
 
3
 
Changes in model
  
 
(26
)
   
 
32
 
   
 
–
 
   
 
6
 
Net remeasurement
(2)
  
 
(740
)
   
 
1,165
 
   
 
391
 
   
 
816
 
Transfers
(2)
           
– to
12-month
ECL
  
 
846
 
   
 
(846
)
   
 
–
 
   
 
–
 
– to lifetime ECL performing
  
 
(77
)
   
 
77
 
   
 
–
 
   
 
–
 
– to lifetime ECL credit-impaired
  
 
(3
)
   
 
(338
)
   
 
341
 
   
 
–
 
Total provision for (reversal of) credit losses
(3)
  
 
36
 
   
 
57
 
   
 
732
 
   
 
825
 
Write-offs
(4)
  
 
–
 
   
 
–
 
   
 
(884
)
   
 
(884
)
Recoveries
  
 
–
 
   
 
–
 
   
 
152
 
   
 
152
 
Interest income on impaired loans
  
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
Foreign exchange and other
  
 
–
 
   
 
–
 
   
 
–
 
   
 
–
 
Balance at end of year
  
$
331
 
   
$
717
 
   
$
–
 
   
$
1,048
 
Business and government
           
Balance at beginning of year
  
$
265
 
   
$
1,061
 
   
$
401
 
   
$
1,727
 
Provision for (reversal of) credit losses
           
Originations net of repayments and other derecognitions
(1)
  
 
52
 
   
 
(105
) 
   
 
(66
) 
   
 
(119
)
Changes in model
  
 
79
 
   
 
(81
)
   
 
(4
)
   
 
(6
)
Net remeasurement
(2)
  
 
(63
) 
   
 
340
 
   
 
439
 
   
 
716
 
Transfers
(2)
           
– to
12-month
ECL
  
 
162
 
   
 
(158
)
   
 
(4
)
   
 
–
 
– to lifetime ECL performing
  
 
(48
)
   
 
55
 
   
 
(7
)
   
 
–
 
– to lifetime ECL credit-impaired
  
 
–
 
   
 
(177
)
   
 
177
 
   
 
–
 
Total provision for (reversal of) credit losses
(3)
  
 
182
 
   
 
(126
)
   
 
535
 
   
 
591
 
Write-offs
(4)
  
 
–
 
   
 
–
 
   
 
(409
)
   
 
(409
)
Recoveries
  
 
–
 
   
 
–
 
   
 
54
 
   
 
54
 
Interest income on impaired loans
  
 
–
 
   
 
–
 
   
 
(94
)
   
 
(94
)
Foreign exchange and other
  
 
5
 
   
 
(3
)
   
 
11
 
   
 
13
 
Balance at end of year
  
$
452
 
   
$
932
 
   
$
498
 
   
$
1,882
 
Total ECL allowance
(5)
  
$
  1,130
 
  
$
2,620
 
  
$
989
 
  
$
4,739
 
Comprises:
           
Loans
  
$
  983
 
  
$
  2,427
 
  
$
   982
 
  
$
  4,392
 
Undrawn credit facilities and other
off-balance
sheet exposures
(6)
  
 
147
 
   
 
193
 
   
 
7
 
   
 
347
 
 
(1)
Excludes the disposal and
write-off
of impaired loans.
(2)
Transfers represent stage movements of ECL allowances before net measurement. Net remeasurement represents the current period change in ECL allowances for transfers, net write-offs, changes in forecasts of forward-looking information, parameter updates, and partial repayments in the year.
(3)
Provision for (reversal of) credit losses for loans, and undrawn credit facilities and other
off-balance
sheet exposures is presented as Provision for (reversal of) credit losses on our consolidated statement of income.
(4)
We generally continue to pursue collection on the amounts that were written off. The degree of collection efforts varies from one jurisdiction to another, depending on the local regulations and original agreements with customers.
(5)
See Note 4 for the ECL allowance on debt securities measured at FVOCI and amortized cost. The ECL allowances for other financial assets classified at amortized cost were immaterial as at October 31, 2025 and October 31, 2024 and were excluded from the table above. Financial assets other than loans that are classified at amortized cost are presented on our consolidated balance sheet net of ECL allowances.
(6)
Included in Other liabilities on our consolidated balance sheet.
 
 
$ millions, as at or for the year ended October 31
            2024  
     Stage 1     Stage 2     Stage 3               
      Collective provision
12-month ECL

performing		     Collective provision
lifetime ECL
performing		     Collective and
individual provision
lifetime ECL
credit-impaired
             Total  
Residential mortgages
            
Balance at beginning of year
    $ 90     $ 142     $ 224        $ 456  
Provision for (reversal of) credit losses
            
Originations net of repayments and other derecognitions
(1)
      15       (19 )      (55 )         (59 ) 
Changes in model
      –       4       11          15  
Net remeasurement
(2)
      (115 )      96       95          76  
Transfers
(2)
            
– to
12-month
ECL
      109       (107 )      (2 )         –  
– to lifetime ECL performing
      (10 )      19       (9 )         –  
– to lifetime ECL credit-impaired
      –       (8 )      8                –  
Total provision for (reversal of) credit losses
(3)
      (1 )      (15 )      48          32  
Write-offs
(4)
      –       –       (18 )         (18 ) 
Recoveries
      –       –       7          7  
Interest income on impaired loans
      –       –       (30 )         (30 ) 
Foreign exchange and other
      –       (1 )      3                2  
Balance at end of year
    $ 89     $ 126     $ 234              $ 449  
Personal
            
Balance at beginning of year
    $ 174     $ 709     $ 181        $ 1,064  
Provision for (reversal of) credit losses
            
Originations net of repayments and other derecognitions
(1)
      32       (58 )      (42 )         (68 ) 
Changes in model
      54       (127 )      (6 )         (79 ) 
Net remeasurement
(2)
      (544 )      631       466          553  
Transfers
(2)
            
– to
12-month
ECL
      591       (588 )      (3 )         –  
– to lifetime ECL performing
      (63 )      74       (11 )         –  
– to lifetime ECL credit-impaired
      –       (96 )      96                –  
Total provision for (reversal of) credit losses
(3)
      70       (164 )      500          406  
Write-offs
(4)
      –       –       (545 )         (545 ) 
Recoveries
      –       –       62          62  
Interest income on impaired loans
      –       –       (7 )         (7 ) 
Foreign exchange and other
      3       1       (1 )               3  
Balance at end of year
    $ 247     $ 546     $ 190              $ 983  
Credit card
            
Balance at beginning of year
    $ 181     $ 591     $ –        $ 772  
Provision for (reversal of) credit losses
            
Originations net of repayments and other derecognitions
(1)
      22       (30 )      –          (8 ) 
Changes in model
      86       (34 )      –          52  
Net remeasurement
(2)
      (413 )      771       394          752  
Transfers
(2)
            
– to
12-month
ECL
      491       (491 )      –          –  
– to lifetime ECL performing
      (72 )      72       –          –  
– to lifetime ECL credit-impaired
      –       (219 )      219                –  
Total provision for (reversal of) credit losses
(3)
      114       69       613          796  
Write-offs
(4)
      –       –       (739 )         (739 ) 
Recoveries
      –       –       126          126  
Interest income on impaired loans
      –       –       –          –  
Foreign exchange and other
      –       –       –                –  
Balance at end of year
    $ 295     $ 660     $ –              $ 955  
Business and government
            
Balance at beginning of year
    $ 294     $ 864     $ 667        $ 1,825  
Provision for (reversal of) credit losses
            
Originations net of repayments and other derecognitions
(1)
      22       (82 )      (48 )         (108 ) 
Changes in model
      (28 )      46       –          18  
Net remeasurement
(2)
        (194 )      569       482          857  
Transfers
(2)
            
– to
12-month
ECL
      215       (201 )      (14 )         –  
– to lifetime ECL performing
      (39 )      47       (8 )         –  
– to lifetime ECL credit-impaired
      –         (187 )      187                –  
Total provision for (reversal of) credit losses
(3)
      (24 )      192       599          767  
Write-offs
(4)
      –       –         (874 )         (874 ) 
Recoveries
      –       –       77          77  
Interest income on impaired loans
      –       –       (84 )         (84 ) 
Foreign exchange and other
      (5 )      5       16                16  
Balance at end of year
    $ 265     $ 1,061     $ 401              $ 1,727  
Total ECL allowance
(5)
    $ 896     $   2,393     $ 825              $   4,114  
Comprises:
            
Loans
    $ 800     $ 2,301     $ 816        $ 3,917  
Undrawn credit facilities and other
off-balance
sheet exposures
(6)
      96       92       9                197  
See previous page for footnote references.
 
 
Inputs, assumptions and model techniques
Our ECL allowances are estimated using complex models that incorporate inputs, assumptions and model techniques that involve a high degree of management judgment. In particular, the following ECL elements are subject to a high level of judgment that can have a significant impact on the level of ECL allowances provided:
•  
Determining when a SICR of a loan has occurred;
•  
Measuring both
12-month
and lifetime credit losses; and
•  
Forecasting forward-looking information for multiple scenarios and determining the probability weighting of the scenarios driven by the changes in the macroeconomic environment.
In addition, the interrelationship between these elements is also subject to a high degree of judgment which can also have a significant impact on the level of ECL recognized.
We continue to operate in an uncertain macroeconomic environment. There is inherent uncertainty in forecasting forward-looking information and estimating the impact that the macroeconomic environment, including the level and duration of tariffs between the U.S., Canada and other major trading partners, the impact that tariffs may have on economic growth and inflation in Canada and the U.S. and fiscal and monetary policies that may be enacted in response to tariffs, as well as geopolitical events, will have on the level of ECL allowance and period-over-period volatility of the provision for credit losses. As a result, a heightened level of judgment in estimating ECLs in respect of all these elements, as discussed below, continued to be required.
Determining when a significant increase in credit risk has occurred
The determination of whether a loan has experienced a SICR has a significant impact on the level of ECL allowance as loans that are in stage 1 are measured at
12-month
ECL, while loans in stage 2 are measured at lifetime ECL. Migration of loans between stage 1 and stage 2 can cause significant volatility in the amount of the recognized ECL allowances and the provision for credit losses in a particular period.
For the majority of our retail loan portfolios, we determine a SICR based on relative changes in the loan’s lifetime PD since its initial recognition. The PDs used for this purpose are the expected value of our upside, downside and base case lifetime PDs. Significant judgment is involved in determining the upside, downside and base case lifetime PDs through the incorporation of forward-looking information into
long-run
PDs, in determining the probability weightings of the scenarios, and in determining the relative changes in PDs that are indicative of a SICR for our various retail products. Increases in the expected PDs or decreases in the thresholds for changes in PDs that are indicative of a SICR can cause significant migration of loans from stage 1 to stage 2, which in turn can cause a significant increase in the amount of ECL allowances recognized. In contrast, decreases in the expected PDs or increases in the thresholds for changes in PDs that are indicative of a SICR can cause significant migration of loans from stage 2 to stage 1.
For the majority of our business and government loan portfolios, we determine a SICR based on relative changes in internal risk ratings since initial recognition. Significant judgment is involved in the determination of the internal risk ratings. Deterioration or improvement in the risk ratings or adjustments to the risk rating downgrade thresholds used to determine a SICR can cause significant migration of loans and securities between stage 1 and stage 2, which in turn can have a significant impact on the amount of ECL allowances recognized.
While potentially significant to the level of ECL allowances recognized, the thresholds for changes in PDs that are indicative of a SICR for our retail portfolios and the risk rating downgrade thresholds used to determine a SICR for our business and government loan portfolios are not expected to change frequently.
Loans for which repayment of principal or payment of interest is contractually 30 days or more in arrears and all business and government loans that have migrated to the watch list risk rating are normally automatically migrated to stage 2 from stage 1.
As at October 31, 2025, if the ECL for the stage 2 performing loans were measured using stage 1 ECL as opposed to lifetime ECL, the ECLs would be $938 million lower than the total recognized IFRS 9 ECL on performing loans (2024: $854 million).
Measuring both
12-month
and lifetime expected credit losses
Our ECL models leverage the data, systems and processes that are used to calculate Basel expected loss regulatory adjustments for the portion of our retail and business and government portfolios under the internal ratings-based (IRB) approach. Significant judgment is applied in leveraging the data and modelling techniques used to calculate Basel risk parameters to meet IFRS 9 requirements, including the conversion of
through-the-cycle
estimates to the
point-in-time
parameters used under IFRS 9 that consider forward-looking information. For standardized retail and business and government portfolios, available
long-run
PDs, LGDs and EADs are also converted to
point-in-time
parameters through the incorporation of forward-looking information for the purpose of measuring ECL under IFRS 9.
Significant judgment is involved in determining which forward-looking information variables are relevant for particular portfolios and in determining the extent by which
through-the-cycle
parameters should be adjusted for forward-looking information to determine
point-in-time
parameters. While changes in the set of forward-looking information variables used to convert
through-the-cycle
PDs, LGDs and EADs into
point-in-time
parameters can either increase or decrease ECL allowances in a particular period, changes to the mapping of forward-looking information variables to particular portfolios are expected to be infrequent. However, changes in the particular forward-looking information parameters used to quantify
point-in-time
parameters will be frequent as our forecasts are updated on a quarterly basis. Increases in the level of pessimism in the forward-looking information variables will cause increases in ECL, while increases in the level of optimism in the forward-looking information variables will cause decreases in ECL. These increases and decreases could be significant in any particular period and will start to occur in the period where our outlook of the future changes.
With respect to the lifetime of a financial instrument, the maximum period considered when measuring ECL is the maximum contractual period over which we are exposed to credit risk. For revolving facilities, such as credit cards, the lifetime of a credit card account is the expected behavioural life. Significant judgment is involved in the estimate of the expected behavioural life. Increases in the expected behavioural life will increase the amount of ECL allowances, in particular for revolving loans in stage 2.
Forecasting forward-looking information for multiple scenarios and determining the probability weighting of the scenarios
As indicated above, forward-looking information is incorporated into both our assessment of whether a financial asset has experienced a SICR since its initial recognition and in our estimate of ECL. From analysis of historical data, our risk management function has identified and reflected in our ECL allowance those relevant forward-looking information variables that contribute to credit risk and losses within our retail and business and government loan portfolios. Within our retail loan portfolio, key forward-looking information variables include Canadian unemployment rates, housing prices, gross domestic product (GDP) growth and household debt service ratios. In many cases these variables are forecasted at the provincial level. Housing prices are forecasted at the municipal level and the national level. Within our business and government loan portfolio, key drivers that impact the credit performance of the entire portfolio include GDP growth and BBB corporate bond yields, while forward-looking information variables such as Canadian

 
and U.S. commercial real estate price indices and oil prices are significant for certain portfolios, and U.S. unemployment rates and U.S. GDP growth are significant for our U.S. portfolios.
For the majority of our loan portfolios, our forecast of forward-looking information variables is established from a “base case” or most likely scenario that is used internally by management for planning and forecasting purposes. For most of the forward-looking information variables related to our Canadian businesses, we have forecast scenarios by province. In forming the base case scenario, we consider the forecasts of international organizations and monetary authorities such as the Organisation for Economic
Co-operation
and Development (OECD), the International Monetary Fund, and the Bank of Canada, as well as private sector economists. We then derive reasonably possible “upside case” and “downside case” scenarios using external forecasts that are above and below our base case and the application of management judgment. A probability weighting is assigned to our base case, upside case and downside case scenarios based on management judgment.
The forecasting process is overseen by a governance committee consisting of internal stakeholders from across our bank including Risk Management, Economics, Finance and the impacted SBUs and involves a significant amount of judgment both in determining the forward-looking information forecasts for our various scenarios and in determining the probability weighting assigned to the scenarios. In general, a worsening of our outlook on forecasted forward-looking information for each scenario, an increase in the probability of the downside case scenario occurring, or a decrease in the probability of the upside case scenario occurring will increase the number of loans migrating from stage 1 to stage 2 and increase the estimated ECL allowance. In contrast, an improvement in our outlook on forecasted forward-looking information, an increase in the probability of the upside case scenario occurring, or a decrease in the probability of the downside case scenario occurring will have the opposite impact. It is not possible to meaningfully isolate the impact of changes in the various forward-looking information variables for a particular scenario because of both the interrelationship between the variables and the interrelationship between the level of pessimism inherent in a particular scenario and its probability of occurring.
The forecasting of forward-looking information and the determination of scenario weightings continued to require a heightened application of judgment in a number of areas as our forecast reflects numerous assumptions and uncertainties inherent in the current macroeconomic environment.
The following table provides the base case, upside case and downside case scenario forecasts for select forward-looking information variables used to estimate our ECL.
 
    Base case     Upside case     Downside case  
As at October 31, 2025
   Average
value over
the next
12 months		     Average
value over
the remaining
forecast period 
(1)
     Average
value over
the next
12 months		     Average
value over
the remaining
forecast period 
(1)
     Average
value over
the next
12 months		     Average
value over
the remaining
forecast period 
(1)
  
Real GDP year-over-year growth
            
Canada
(2)
  
 
1.1
 % 
  
 
2.0
 % 
  
 
1.7
 % 
  
 
2.4
 % 
  
 
(0.4
)%
  
 
1.1
 
%
United States
  
 
2.0
 % 
  
 
1.8
 % 
  
 
2.8
 % 
  
 
2.8
 % 
  
 
0.7
 % 
  
 
1.0
 % 
Unemployment rate
            
Canada
(2)
  
 
6.8
 % 
  
 
6.1
 % 
  
 
6.4
 % 
  
 
5.5
 % 
  
 
7.4
 % 
  
 
7.0
 % 
United States
  
 
4.4
 % 
  
 
4.1
 % 
  
 
3.9
 % 
  
 
3.5
 % 
  
 
5.0
 % 
  
 
4.6
 % 
Canadian Housing Price Index growth
(2)
  
 
0.8
 % 
  
 
2.7
 % 
  
 
3.9
 % 
  
 
4.7
 % 
  
 
(3.7
)%
  
 
(0.5
)%
Canadian household debt service ratio
  
 
14.6
 % 
  
 
14.7
 % 
  
 
14.3
 % 
  
 
14.4
 % 
  
 
15.2
 % 
  
 
15.6
 % 
West Texas Intermediate Oil Price (US$)
  
$
70
 
  
$
67
 
  
$
74
 
  
$
83
 
  
$
54
 
  
$
58
 
As at October 31, 2024
                                          
Real GDP year-over-year growth
            
Canada
(2)
     1.6  %      2.3  %      2.5  %      2.7  %      0.4  %      1.4  % 
United States
     2.0  %      2.0  %      3.0  %      2.9  %      0.7  %      0.9  % 
Unemployment rate
            
Canada
(2)
     6.6  %      5.9  %      5.7  %      5.2  %      7.2  %      6.8  % 
United States
     4.5  %      4.0  %      3.7  %      3.3  %      5.1  %      4.7  % 
Canadian Housing Price Index growth
(2)
     2.6  %      2.5  %      7.1  %      4.0  %      (2.3 )%      0.9  % 
Canadian household debt service ratio
       14.8  %        14.8  %        14.4  %        14.7  %        15.3  %        15.2  % 
West Texas Intermediate Oil Price (US$)
   $ 78     $ 74     $ 88     $ 100     $ 60     $ 61  
 
(1)
The remaining forecast period is generally four years.
(2)
In our ECL calculation process, Canadian Real GDP year-over-year growth and Canadian unemployment rate are forecasted at the provincial level while Canadian Housing Price Index growth is forecasted at the municipal level. As a result, the forecasts for individual provinces or municipalities reflected in our ECL will differ from the national forecasts presented above.
As required, the forward-looking information used to estimate ECLs reflects our expectations as at October 31, 2025 and October 31, 2024, respectively, and does not reflect changes in expectations that may have subsequently arisen. The base case, upside case and downside case amounts shown represent the average value of the forecasts over the respective projection horizons.
Our underlying base case projection as at October 31, 2025 continues to be characterized by slow real GDP growth and elevated unemployment rates in Canada, and slightly stronger growth in the U.S. in the near term. Compared to October 31, 2024, our base case projections for Canada and the U.S. reflect the negative impact from tariffs and trade uncertainty in the near term, and the partial easing of tariffs in 2026, but not to levels that existed prior to the announcements of the new U.S. administration. Our base case also assumes that interest rates will hold at current levels through 2026, and remain at higher than
pre-pandemic
levels.
Our downside case forecast as at October 31, 2025 assumes a recession in the near term and slower growth thereafter in Canada due to increasing economic uncertainty. Our downside case forecast as at October 31, 2025 is consistent with a more pronounced and longer lasting trade dispute between Canada and the U.S., including higher unemployment rates in Canada and lower business capital and consumer spending. The downside case forecast for the U.S. assumes slow growth for the near term and reflects slower recoveries thereafter to lower levels of sustained economic activity and persistently higher unemployment rates. The upside scenario continues to reflect a better economic environment than the base case forecast.
As indicated above, forecasting forward-looking information for multiple scenarios and determining the probability weighting of the scenarios involves a high degree of management judgment.
If we were to only use our base case scenario for the measurement of ECL for our performing loans, our ECL allowance would be $
420
million lower than the recognized ECL as at October 31, 2025 (2024: $
246
 million). If we were to only use our downside case scenario for the measurement of ECL for our performing loans, our ECL allowance would be $
853
million higher than the recognized ECL as at October 31, 2025 (2024: $
737
 million). This sensitivity is isolated to the measurement of ECL and therefore did not consider changes in the migration of exposures between stage 1 and stage 2 from the determination of the SICR that would have resulted in a
100
% base case scenario or a
100
% downside case scenario. As a result, our
 
 
ECL
 
allowance on performing loans could exceed the amount implied by the 100% downside case scenario from the migration of additional exposures from stage 1 to stage 2. Actual credit losses could differ materially from those reflected in our estimates.
Use of management overlays
Management overlays to ECL allowance estimates are adjustments which we use in circumstances where we judge that our existing inputs, assumptions and model techniques do not capture all relevant risk factors. The emergence of new macroeconomic or geopolitical events, along with expected changes to parameters, models or data that are not incorporated in our current parameters, internal risk rating migrations, or forward-looking information are examples of such circumstances. To address the significant uncertainties inherent in the current environment, we utilize management overlays with respect to the impact of certain forward-looking information and credit metrics that are not expected to be as indicative of the credit condition of the portfolios as the historical experience in our models would have otherwise suggested. The use of management overlays requires the application of significant judgment that impacts the amount of ECL allowances recognized. Actual credit losses could differ materially from those reflected in our estimates.
The following tables provide the gross carrying amount of loans, and the contractual amounts of undrawn credit facilities and other
off-balance
sheet exposures based on our risk management PD bands for retail exposures, and based on our internal risk ratings for business and government exposures. Refer to the “Credit risk” section of the MD&A for details on the CIBC risk categories.
Loans
(1)
 
$ millions, as at October 31
 
  
 
 
  
 
 
  
 
 
2025
 
 
  
 
 
  
 
 
  
 
 
2024
 
  
 
Stage 1
 
 
Stage 2
 
 
Stage 3 
(2)(3)
 
 
Total
 
 
Stage 1
 
 
Stage 2
 
 
Stage 3
 (2)(3)
 
 
Total
 
Residential mortgages
                
– Exceptionally low
  
$
  171,983
 
  
$
227
 
  
$
–
 
  
$
  172,210
 
   $ 160,515     $ 6,130     $ –     $ 166,645  
– Very low
  
 
85,628
 
  
 
1,171
 
  
 
–
 
  
 
86,799
 
     81,198       5,926       –       87,124  
– Low
  
 
10,987
 
  
 
2,749
 
  
 
–
 
  
 
13,736
 
     10,329       3,638       –       13,967  
– Medium
  
 
1,041
 
  
 
7,071
 
  
 
–
 
  
 
8,112
 
     851       6,534       –       7,385  
– High
  
 
11
 
  
 
1,859
 
  
 
–
 
  
 
1,870
 
     7       1,561       –       1,568  
– Default
  
 
–
 
  
 
–
 
  
 
1,097
 
  
 
1,097
 
     –       –       790       790  
– Not rated
  
 
2,808
 
  
 
183
 
  
 
218
 
  
 
3,209
 
     2,757       232       204       3,193  
Gross residential mortgages
(4)(5)
  
 
272,458
 
  
 
13,260
 
  
 
1,315
 
  
 
287,033
 
     255,657       24,021       994       280,672  
ECL allowance
  
 
100
 
  
 
168
 
  
 
306
 
  
 
574
 
     89       126       234       449  
Net residential mortgages
  
 
272,358
 
  
 
13,092
 
  
 
1,009
 
  
 
286,459
 
     255,568       23,895       760       280,223  
Personal
                
– Exceptionally low
  
 
18,316
 
  
 
136
 
  
 
–
 
  
 
18,452
 
     16,689       83       –       16,772  
– Very low
  
 
10,794
 
  
 
324
 
  
 
–
 
  
 
11,118
 
     9,685       12       –       9,697  
– Low
  
 
6,404
 
  
 
2,104
 
  
 
–
 
  
 
8,508
 
     10,498       1,374       –       11,872  
– Medium
  
 
4,502
 
  
 
2,506
 
  
 
–
 
  
 
7,008
 
     3,848       1,822       –       5,670  
– High
  
 
759
 
  
 
922
 
  
 
–
 
  
 
1,681
 
     465       1,102       –       1,567  
– Default
  
 
–
 
  
 
–
 
  
 
253
 
  
 
253
 
     –       –       260       260  
– Not rated
  
 
779
 
  
 
30
 
  
 
37
 
  
 
846
 
     782       29       32       843  
Gross personal
(5)
  
 
41,554
 
  
 
6,022
 
  
 
290
 
  
 
47,866
 
     41,967       4,422       292       46,681  
ECL allowance
  
 
222
 
  
 
749
 
  
 
185
 
  
 
1,156
 
     221       531       190       942  
Net personal
  
 
41,332
 
  
 
5,273
 
  
 
105
 
  
 
46,710
 
     41,746       3,891       102       45,739  
Credit card
                
– Exceptionally low
  
 
7,117
 
  
 
–
 
  
 
–
 
  
 
7,117
 
     7,185       –       –       7,185  
– Very low
  
 
443
 
  
 
–
 
  
 
–
 
  
 
443
 
     502       –       –       502  
– Low
  
 
6,727
 
  
 
380
 
  
 
–
 
  
 
7,107
 
     6,800       4       –       6,804  
– Medium
  
 
5,008
 
  
 
1,116
 
  
 
–
 
  
 
6,124
 
     3,853       1,512       –       5,365  
– High
  
 
6
 
  
 
594
 
  
 
–
 
  
 
600
 
     2       522       –       524  
– Default
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
     –       –       –       –  
– Not rated
  
 
184
 
  
 
6
 
  
 
–
 
  
 
190
 
     165       6       –       171  
Gross credit card
  
 
19,485
 
  
 
2,096
 
  
 
–
 
  
 
21,581
 
     18,507       2,044       –       20,551  
ECL allowance
  
 
302
 
  
 
640
 
  
 
–
 
  
 
942
 
     279       623       –       902  
Net credit card
  
 
19,183
 
  
 
1,456
 
  
 
–
 
  
 
20,639
 
     18,228       1,421       –       19,649  
Business and government
                
– Investment grade
  
 
119,315
 
  
 
875
 
  
 
–
 
  
 
120,190
 
     101,809       722       –       102,531  
– Non-investment grade
  
 
102,145
 
  
 
8,807
 
  
 
–
 
  
 
110,952
 
     97,131       9,000       –       106,131  
– Watch list
  
 
61
 
  
 
3,901
 
  
 
–
 
  
 
3,962
 
     25       3,745       –       3,770  
– Default
  
 
–
 
  
 
–
 
  
 
2,031
 
  
 
2,031
 
     –       –       1,628       1,628  
– Not rated
  
 
269
 
  
 
12
 
  
 
–
 
  
 
281
 
     230       15       –       245  
Gross business and government
(4)(6)
  
 
221,790
 
  
 
13,595
 
  
 
2,031
 
  
 
237,416
 
     199,195       13,482       1,628       214,305  
ECL allowance
  
 
359
 
  
 
870
 
  
 
491
 
  
 
1,720
 
     211       1,021       392       1,624  
Net business and government
  
 
221,431
 
  
 
12,725
 
  
 
1,540
 
  
 
235,696
 
     198,984       12,461       1,236       212,681  
Total net amount of loans
  
$
554,304
 
  
$
  32,546
 
  
$
  2,654
 
  
$
589,504
 
   $   514,526     $   41,668     $   2,098     $   558,292  
 
(1)
The table excludes debt securities measured at FVOCI, for which ECL allowances of $23 million (2024: $
19
million) were recognized in AOCI. In addition, the table excludes debt securities classified at amortized cost, for which ECL allowances of $52 million were recognized as at October 31, 2025 (2024: $17 million). Other financial assets classified at amortized cost were also excluded from the table above as their ECL allowances were immaterial as at October 31, 2025 and October 31, 2024. Financial assets other than loans that are classified as amortized cost are presented on our consolidated balance sheet net of ECL allowances.
(2)
Excludes foreclosed assets of $2 million (2024: $8 million), which were included in Other assets on our consolidated balance sheet.
(3)
As at October 31, 2025, 92% (2024: 93%) of stage 3 impaired loans were either fully or partially collateralized.
(4)
Includes $3 million (2024: $3 million) of residential mortgages and $560 million (2024: $221 million) of business and government loans that are measured and designated at FVTPL.
(5)
The internal risk rating grades presented for residential mortgages and certain personal loans do not take into account loan guarantees or insurance issued by the Canadian government (federal or provincial), Canadian government agencies, or private insurers, as the determination of whether a SICR has occurred for these loans is based on relative changes in the loans’ lifetime PD without considering collateral or other credit enhancements.
(6)
Includes customers’ liability under acceptances of $10 million (2024: $6 million).
 
 
Undrawn credit facilities and other
off-balance
sheet exposures

 
$ millions, as at October 31
  
  
 
  
  
 
  
  
 
  
2025
 
  
  
 
  
  
 
  
  
 
  
2024
 
  
  
Stage 1
 
  
Stage 2
 
  
Stage 3
 
  
Total
 
  
Stage 1
 
  
Stage 2
 
  
Stage 3
 
  
Total
 
Retail
                        
– Exceptionally low
   
$
176,040
 
   
$
190
 
   
$
–
 
   
$
176,230
 
    $ 164,577      $ 117      $ –      $ 164,694  
– Very low
   
 
14,237
 
   
 
572
 
   
 
–
 
   
 
14,809
 
      15,112        4        –        15,116  
– Low
   
 
14,867
 
   
 
1,705
 
   
 
–
 
   
 
16,572
 
      14,988        984        –        15,972  
– Medium
   
 
2,449
 
   
 
1,508
 
   
 
–
 
   
 
3,957
 
      2,263        1,280        –        3,543  
– High
   
 
545
 
   
 
422
 
   
 
–
 
   
 
967
 
      325        539        –        864  
– Default
   
 
–
 
   
 
–
 
   
 
46
 
   
 
46
 
      –        –        43        43  
– Not rated
   
 
620
 
   
 
8
 
   
 
–
 
   
 
628
 
      565        9        –        574  
Gross retail
   
 
208,758
 
   
 
4,405
 
   
 
46
 
   
 
213,209
 
      197,830        2,933        43        200,806  
ECL allowance
   
 
54
 
   
 
131
 
   
 
–
 
   
 
185
 
      42        52        –        94  
Net retail
   
 
208,704
 
   
 
4,274
 
   
 
46
 
   
 
213,024
 
      197,788        2,881        43        200,712  
Business and government
                        
– Investment grade
   
 
179,496
 
   
 
579
 
   
 
–
 
   
 
180,075
 
      156,560        571        –        157,131  
– Non-investment grade
   
 
79,909
 
   
 
2,659
 
   
 
–
 
   
 
82,568
 
      66,788        3,018        –        69,806  
– Watch list
   
 
57
 
   
 
1,046
 
   
 
–
 
   
 
1,103
 
      28        878        –        906  
– Default
   
 
–
 
   
 
–
 
   
 
217
 
   
 
217
 
      –        –        123        123  
– Not rated
   
 
947
 
   
 
42
 
   
 
–
 
   
 
989
 
      1,117        91        –        1,208  
Gross business and government
   
 
260,409
 
   
 
4,326
 
   
 
217
 
   
 
264,952
 
      224,493        4,558        123        229,174  
ECL allowance
   
 
93
 
   
 
62
 
   
 
7
 
   
 
162
 
      54        40        9        103  
Net business and government
   
 
260,316
 
   
 
4,264
 
   
 
210
 
   
 
264,790
 
      224,439        4,518        114        229,071  
Total net undrawn credit facilities and other
off-balance
sheet exposures
   
$
  469,020
 
   
$
  8,538
 
   
$
  256
 
   
$
  477,814
 
    $   422,227      $   7,399      $   157      $   429,783  
Modified financial assets
As part of CIBC’s usual lending business, from time to time we may modify the contractual terms of loans classified as stage 2 and stage 3 for which the borrower has experienced financial difficulties, through the granting of a concession in the form of below-market rates or terms that we would not otherwise have considered.
During the year ended October 31, 2025, loans classified as stage 2 or stage 3 with an amortized cost of $309 million (2024: $655 million) before modification were modified through the granting of a financial concession in response to the borrower having experienced financial difficulties. In addition, the gross carrying amount of previously modified stage 2 or stage 3 loans that have returned to stage 1 during the year ended October 31, 2025 was $327 million (2024: $274 million)
.