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IFRS 7 Disclosure
 12 Months Ended
Oct. 31, 2025
IFRS 7 Disclosure [Abstract]  
IFRS 7 Disclosure
The shaded areas of this MD&A represent
 
a discussion on risk management policies
 
and procedures relating to credit, market,
 
and liquidity risks as required under
IFRS 7,
Financial Instruments: Disclosures
 
(IFRS 7), which permits these specific
 
disclosures to be included in the MD&A.
 
Therefore, the shaded areas which
include Credit Risk, Market Risk, and Liquidity
 
Risk, form an integral part of the audited
 
Consolidated Financial Statements for
 
the years ended October 31, 2025
and October 31, 2024.
The Basel Framework
The objective of the Basel Framework is to improve the
 
consistency of capital requirements internationally
 
and establish minimum regulatory capital
 
standards
which adequately capture risks. The
 
Basel Framework sets different risk-sensitive
 
approaches for calculating credit, market,
 
and operational RWA.
Credit Risk
Credit risk is the risk of loss if a borrower or
 
counterparty in a transaction fails to meet
 
its agreed payment obligations.
Credit risk is one of the most significant and
 
pervasive risks in banking. Every loan,
 
extension of credit, or transaction that involves
 
the transfer of payments
between the Bank and other parties or financial
 
institutions exposes the Bank to some
 
degree of credit risk.
 
The Bank’s primary objective is to be methodical
 
in its credit risk assessment so that
 
the Bank can understand, select, and manage
 
its exposures to reduce
significant fluctuations in earnings.
 
The Bank’s strategy is to include central oversight
 
of credit risk in each business, and reinforce
 
a culture of transparency, accountability, independence, and
balance.
WHO MANAGES CREDIT RISK
The responsibility for credit risk management
 
is enterprise-wide.
To
reinforce ownership of credit risk, credit risk
 
control functions are integrated into each
business, but also report to Risk Management.
Each business segment’s credit risk control unit is
 
responsible for its credit decisions and
 
must comply with established policies, exposure
 
guidelines, credit
approval limits, and policy/limit exception procedures.
 
It must also adhere to established enterprise-wide
 
standards of credit assessment and obtain
 
Risk
Management’s approval for credit decisions beyond its
 
discretionary authority.
Risk Management is accountable for oversight
 
of credit risk by developing policies that
 
govern and control portfolio risks, and approval
 
of product-specific
policies, as required.
The Risk Committee of the Board oversees
 
the management of credit risk and annually
 
approves certain significant credit risk policies.
HOW TD MANAGES CREDIT RISK
The Bank’s Credit Risk Management Framework
 
outlines the internal risk and control
 
structure to manage credit risk and includes
 
risk appetite, policies,
processes, limits and governance. The Credit
 
Risk Management Framework is maintained by
 
Risk Management and supports alignment
 
with the Bank’s risk
appetite for credit risk.
Credit risk policies and credit decision-making
 
strategies, as well as the discretionary limits
 
of officers throughout the Bank for extending lines
 
of credit are
approved by Risk Management, and the Board
 
where applicable.
 
Limits are established to monitor and control
 
country, industry, product, geographic, and group exposure risks in the portfolios in accordance
 
with enterprise-
wide policies.
In the Bank’s Retail businesses, the Bank uses established
 
underwriting guidelines (which include
 
collateral and loan-to-value requirements)
 
along with
approved scoring techniques and standards
 
in extending, monitoring, and reporting
 
personal credit. Credit scores and decision
 
strategies are used in the
origination and ongoing management of new
 
and existing retail credit exposures. Scoring
 
models and decision strategies utilize a
 
combination of borrower
attributes, including, but not limited to, income,
 
employment status, existing loan exposure
 
and performance, and size of total bank
 
relationship, as well as external
data such as credit bureau information, to determine
 
the amount of credit the Bank is prepared to extend
 
to retail customers and to estimate future
 
credit
performance. Established policies and procedures
 
are in place to govern the use, and
 
monitor and assess the performance of scoring
 
models and decision
strategies to align with expected performance
 
results. Retail credit exposures approved
 
within the credit underwriting centres are subject
 
to ongoing Retail Risk
Management review to assess the effectiveness of
 
credit decisions and risk controls, as well as
 
to identify emerging or systemic issues and
 
trends. Material policy
exceptions are tracked and reported and larger
 
dollar exposures and material exceptions
 
to policy are escalated to Retail Risk Management.
The Bank’s Commercial Banking and Wholesale Banking
 
businesses use credit risk models and policies
 
to establish borrower and facility risk
 
ratings (BRR and
FRR), quantify and monitor the level of risk,
 
and to aid in the Bank’s effective management of risk.
 
Risk ratings are also used to determine
 
the amount of credit
exposure the Bank is willing to extend
 
to a particular borrower. Management processes are used
 
to monitor country, industry, and borrower or counterparty risk
ratings, which include daily, monthly, quarterly, and annual review requirements for credit exposures. The key
 
parameters used in the Bank’s credit risk models
 
are
monitored on an ongoing basis.
Unanticipated economic or political changes
 
in a foreign country could affect cross-border payments
 
for goods and services, loans, dividends,
 
and trade related
finance, as well as repatriation of the Bank’s capital
 
in that country. The Bank currently has credit exposure in
 
a number of countries, with the majority of the
exposure in North America. The Bank measures
 
country risk using approved risk rating models
 
and qualitative factors that are also used
 
to establish country
exposure limits covering all aspects of credit
 
exposure across all businesses. Country risk
 
ratings are managed on an ongoing
 
basis and are subject to a detailed
review at least annually.
As part of the Bank’s credit risk strategy, the Bank sets limits on the
 
amount of credit it is prepared to extend
 
to specific industry sectors. The Bank
 
monitors its
concentration to any given industry to provide
 
for a diversified loan portfolio and to reduce
 
the risk of undue concentration. The Bank
 
manages this risk using limits
based on an internal risk rating methodology
 
that considers relevant factors. The Bank
 
assigns a maximum exposure limit or a
 
concentration limit to each major
industry segment which is a percentage of its
 
total wholesale and commercial private sector
 
exposure.
The Bank may also set limits on the amount
 
of credit it is prepared to extend to a particular
 
entity or group of entities, also referred
 
to as “entity risk”. All entity
risk is approved by the appropriate decision-making
 
authority using limits based on the entity’s BRR.
 
This exposure is monitored on a regular basis.
To
determine the potential loss that could be incurred
 
under a range of adverse scenarios, the
 
Bank subjects its credit portfolios to stress
 
tests. Stress tests
assess vulnerability of the portfolios to
 
the effects of severe but plausible situations, such as
 
an economic downturn or a material market
 
disruption.
Credit Risk and the Basel Framework
The Bank uses the Basel IRB to calculate
 
credit risk RWA for all material portfolios. Based on exposure
 
class, in accordance with the OSFI CAR
 
guidelines, either
a foundation approach (Foundation Internal
 
Ratings-Based (FIRB)) or advanced
 
approach (Advanced Internal Ratings-Based
 
(AIRB)) is applied.
The following risk parameters are used in
 
credit risk RWA calculations and may be subject to prescribed
 
floors in some cases:
●
 
Probability of default (PD) – the likelihood
 
that the borrower will not be able to meet
 
its scheduled repayments within a one-year
 
time horizon.
●
 
Loss given default (LGD) – the amount
 
of loss the Bank would likely incur when a
 
borrower defaults on a loan, which is
 
expressed as a percentage of exposure
at default (EAD).
●
 
EAD – the total amount of the Bank’s exposure at
 
the time of default, including certain off-balance
 
sheet items.
 
The FIRB approach primarily uses internally
 
derived PD, while other components such
 
as LGD and EAD are prescribed. The
 
AIRB approach uses internally
derived PD, LGD, and EAD.
To
continue to qualify to use the IRB approaches
 
for credit risk, the Bank must meet the ongoing
 
conditions and requirements established by OSFI
 
and the Basel
Framework. The Bank regularly assesses its
 
compliance with these requirements.
Credit Risk Exposures Subject to the
 
IRB Approaches
Banks that adopt the IRB approaches to
 
credit risk must report credit risk exposures by
 
counterparty type, each having different underlying
 
risk characteristics.
These counterparty types may differ from the
 
presentation in the Bank’s 2025 Consolidated
 
Financial Statements. The Bank’s credit risk exposures
 
are divided into
two main portfolios, retail and non-retail.
Retail Exposures
In the retail portfolio, including individuals and
 
small businesses, the Bank manages exposures
 
on a pooled basis, using predictive credit
 
scoring techniques. There
are three sub-types of retail exposures: residential
 
secured (for example, mortgages and
 
HELOCs), qualifying revolving retail (for example,
 
credit cards, unsecured
lines of credit, and overdraft protection products),
 
and other retail (for example, personal loans,
 
including secured automobile loans, student
 
lines of credit, and
small business banking credit products).
The Bank calculates RWA for its retail exposures using the
 
AIRB approach. All retail PD, LGD, and
 
EAD parameter models are based on the
 
internal default
and loss performance history for each of
 
the three retail exposure sub-types. These
 
parameters are also used in the calculation
 
of regulatory capital, economic
capital, and allowance for credit losses.
Account-level PD, LGD, and EAD models
 
are built for each product portfolio and
 
calibrated based on the observed account-level
 
default and loss performance
for the portfolio.
 
Consistent with the AIRB approach, the Bank
 
defines default for exposures as delinquency
 
of 90 days or more for the majority
 
of retail credit portfolios. LGD
estimates used in the RWA calculations reflect economic losses,
 
such as direct and indirect costs as well as
 
any appropriate discount to account
 
for time between
default and ultimate recovery. EAD estimates reflect the historically
 
observed utilization of credit limits at default.
 
PD, LGD, and EAD models are calibrated
 
using
established statistical methods, such as logistic
 
and linear regression techniques. Predictive
 
attributes in the models may include account
 
attributes, such as loan
size, interest rate, and collateral, where
 
applicable; an account’s previous history and
 
current status; an account’s age on book; a customer’s
 
credit bureau
attributes; a customer’s other holdings
 
with the Bank; and macroeconomic inputs,
 
such as unemployment rate. For secured
 
products such as residential
mortgages, property characteristics, loan
 
to value ratios, and a customer’s
 
equity in the property, play a significant role in PD as well as in LGD
 
models.
 
All risk parameter estimates are updated
 
on a quarterly basis based on the refreshed
 
model inputs. Parameter estimation is fully automated
 
based on approved
formulas and is not subject to manual overrides.
 
Exposures are then assigned to pre-defined
 
PD segments based on their estimated long-run
 
average one-year PD.
 
The predictive power of the Bank’s retail credit
 
models is assessed against the most recently
 
available one-year default and loss performance
 
on a quarterly
basis. All models are also subject to a
 
comprehensive independent validation as
 
outlined in the “Model Risk Management”
 
section of this disclosure.
Long-run PD estimates are generated by
 
including key economic indicators, such as
 
interest rates and unemployment rates, and
 
using their long-run average
over the credit cycle to estimate PD.
 
LGD estimates are required to reflect a downturn
 
scenario. Downturn LGD estimates are generated
 
by using macroeconomic inputs, such
 
as changes in
housing prices and unemployment rates
 
expected in an appropriately severe downturn
 
scenario.
 
For unsecured products, downturn LGD estimates
 
reflect the observed lower recoveries
 
for exposures defaulted during the 2008
 
to 2009 recession. For
products secured by residential real estate,
 
such as mortgages and HELOCs, downturn LGD
 
reflects the potential impact of a severe housing
 
downturn. EAD
estimates similarly reflect a downturn scenario.
The following table maps PD ranges
 
to risk levels:
Risk assessment
PD Segment
PD Range
Low Risk
1
0.00
to
0.15
%
Normal Risk
2
0.16
to
0.41
3
0.42
to
1.10
Medium Risk
4
1.11
to
2.93
5
2.94
to
4.74
High Risk
6
4.75
to
7.59
7
7.60
to
18.24
8
18.25
to
99.99
Default
9
100.00
Non-Retail Exposures
In the non-retail portfolio, the Bank manages
 
exposures on an individual borrower basis, using
 
industry and sector-specific credit risk
 
models, and expert judgment.
The Bank has categorized non-retail credit risk
 
exposures according to the following
 
Basel counterparty types: corporate, including
 
wholesale and commercial
customers, sovereign, and bank. Under the
 
IRB approaches, CMHC-insured mortgages
 
are considered sovereign risk and are
 
therefore classified as non-retail.
 
The Bank evaluates credit risk for non-retail
 
exposures by using both a BRR and
 
FRR. The Bank uses this system for all corporate,
 
sovereign, and bank
exposures. The Bank determines the risk
 
ratings using industry and sector-specific
 
credit risk models that are based on
 
internal historical data. In Canada, for both
the wholesale and commercial lending portfolios,
 
credit risk models are calibrated based on internal
 
data beginning in 1994. In the U.S.,
 
credit risk models are
calibrated based on internal data beginning in
 
2007. All borrowers and facilities are assigned
 
an internal risk rating that must be reviewed
 
at least once each year.
External data such as rating agency default rates
 
or loss databases are used to benchmark
 
the parameters.
 
Internal risk ratings (BRR and FRR) are key
 
to portfolio monitoring and management,
 
and are used to set exposure limits and loan
 
pricing. Internal risk ratings
are also used in the calculation of regulatory
 
capital, economic capital, and allowance
 
for credit losses.
 
Borrower Risk Rating and PD
Each borrower is assigned a BRR that
 
reflects the PD of the borrower using proprietary
 
models and expert judgment. In assessing
 
borrower risk, the Bank reviews
the borrower’s competitive position,
 
financial performance, economic, and industry
 
trends, management quality, and access to funds. Under the IRB
 
approaches,
borrowers are grouped into BRR grades
 
where a PD is calibrated for each BRR grade.
 
Use of projections for model implied risk ratings
 
is not permitted and BRRs
may not incorporate a projected reversal,
 
stabilization of negative trends, or the acceleration
 
of existing positive trends. Historic financial results
 
can however be
sensitized to account for events that have occurred,
 
or are about to occur, such as additional debt incurred
 
by a borrower since the date of the last
 
set of financial
statements. In conducting an assessment
 
of the BRR, all relevant and material information
 
must be taken into account and the information
 
being used must be
current. Quantitative rating models are used
 
to rank the expected through-the-cycle PD, and
 
these models are segmented into categories
 
based on industry and
borrower size. The quantitative model output
 
can be modified in some cases by expert judgment,
 
as prescribed within the Bank’s credit policies.
To
calibrate PDs for each BRR band, the Bank
 
computes yearly transition matrices based
 
on annual cohorts and then estimates the average
 
annual PD for each
BRR. The PD is set at the average estimation
 
level plus an appropriate adjustment to
 
cover statistical and model uncertainty. The calibration process
 
for PD is a
through-the-cycle approach.
TD’s 21-point BRR scale broadly aligns to external
 
ratings as follows:
Description
Rating Category
Standard & Poor’s
Moody’s Investor Services
Investment grade
0 to 1C
AAA to AA-
Aaa to Aa3
2A to 2C
A+ to A-
A1 to A3
3A to 3C
BBB+ to BBB-
Baa1 to Baa3
Non-investment grade
4A to 4C
BB+ to BB-
Ba1 to Ba3
5A to 5C
B+ to B-
B1 to B3
Watch and classified
6 to 8
CCC+ to CC and below
Caa1 to Ca and below
Impaired/default
9A to 9B
Default
Default
Facility Risk Rating and LGD
The FRR maps to LGD, with different models
 
used based on industry and obligor size, and
 
takes into account facility-specific characteristics
 
such as collateral,
seniority ranking of debt, loan structure,
 
and borrower enterprise value.
Average LGD and the statistical uncertainty of LGD
 
are estimated for each FRR grade. In some
 
FRR models, the scarcity of historical default
 
events requires the
model to output a rank-ordering which is
 
then mapped through expert judgment
 
to the quantitative LGD scale.
 
Under the FIRB approach, LGDs are prescribed
 
whereas the AIRB approach stipulates the use
 
of downturn LGD, where the downturn period,
 
as determined by
internal and/or external experience, suggests
 
higher than average loss rates or lower
 
than average recovery. To reflect this, calibrated LGDs take into account
both the statistical estimation uncertainty and
 
the higher than average LGDs experienced
 
during downturn periods.
Exposure at Default
 
The Bank calculates non-retail EAD by first
 
measuring the drawn amount of a facility and
 
then adding a potential increased utilization
 
at default from the undrawn
portion, if any. Usage Given Default (UGD) is measured as the percentage
 
of undrawn exposure that would be expected
 
to be drawn by a borrower defaulting in
the next year, in addition to the amount that already has been drawn
 
by the borrower. In the absence of credit mitigation
 
effects or other details, the EAD is set at
the drawn amount plus (estimated UGD
 
x undrawn) for AIRB exposure, or (prescribed
 
UGD x undrawn) for FIRB exposures.
BRR and drawn ratio up to one-year prior
 
to default are predictors for UGD under the AIRB
 
approach. Consequently, the UGD estimates are calibrated by
 
BRR
and drawn ratio, the latter representing
 
the ratio of the drawn to authorized amounts.
 
Historical UGD experience is studied for any
 
downturn impacts, similar to the LGD downturn
 
analysis. The Bank has not found downturn
 
UGD to be significantly
different from average UGD, therefore the
 
UGDs under AIRB are set at the average
 
calibrated level, by drawn ratio and/or
 
BRR, plus an appropriate adjustment for
statistical and model uncertainty.
UGDs under the FIRB approach are prescribed
 
for relevant exposure classes.
Credit Risk Exposures Subject to the Standardized
 
Approach (SA)
Currently the SA to credit risk is used
 
for new portfolios, which are in the process of
 
transitioning to IRB approaches, or exempted
 
portfolios which are either
immaterial or expected to wind down. The
 
Bank primarily applies SA to certain segments
 
within both the Retail and Non-retail portfolios.
 
Under the SA, the
exposure amounts are multiplied by risk
 
weights prescribed by OSFI, based on the
 
OSFI Capital Adequacy Requirements
 
(CAR) guidelines, to determine RWA.
These risk weights are assigned according
 
to certain factors including counterparty type,
 
product type, and the nature/extent of
 
credit risk mitigation. The Bank
uses external credit ratings, including Moody’s and S&P
 
to determine the appropriate risk weight
 
for its exposures to sovereigns and central
 
banks, public sector
entities (PSEs), multilateral development banks
 
(MDBs), banks (securities firms and other
 
financial institutions), and corporates. The
 
Bank applies SA to certain
retail portfolios, including Real Estate Secured
 
Lending (RESL), where the assigned risk
 
weight is primarily based on the exposure’s Loan-to-Value ratio
 
and
whether the exposure is categorized as income
 
producing or general.
Lower risk weights apply where approved
 
credit risk mitigants exist. For off-balance
 
sheet exposures, specified credit conversion
 
factors are used to convert the
notional amount of the exposure into a credit
 
equivalent amount.
Derivative Exposures
Credit risk on derivative financial instruments,
 
also known as counterparty credit risk,
 
is the risk of a financial loss occurring as a result
 
of the failure of a
counterparty to meet its obligation to the Bank.
 
Derivative-related credit risks are subject to
 
the same credit approval standards that
 
the Bank uses for assessing
loans. These standards include evaluating
 
the creditworthiness of counterparties,
 
measuring and monitoring exposures, including
 
wrong-way risk exposures, and
managing the size, diversification, and
 
maturity structure of the portfolios.
The Bank uses various qualitative and quantitative
 
methods to measure and manage counterparty
 
credit risk. These include statistical methods
 
to measure the
current and future potential risk, as well as
 
ongoing stress testing to identify and quantify
 
exposure under a range of adverse scenarios.
 
The Bank establishes
various limits to manage business volumes
 
and concentrations. Risk Management
 
independently measures and monitors
 
counterparty credit risk relative to
established credit policies and limits. As
 
part of the credit risk monitoring process,
 
management periodically reviews all exposures,
 
including exposures resulting
from derivative financial instruments to higher
 
risk counterparties, and to assess the
 
valuation of underlying financial instruments and
 
the impact evolving market
conditions may have on the Bank.
There are two types of wrong-way risk exposures,
 
namely general and specific. General
 
wrong-way risk arises when the PD of the
 
counterparties moves in the
same direction as a given market risk factor. Specific wrong-way
 
risk arises when the exposure to a particular
 
counterparty moves in the same direction as
 
the PD
of the counterparty due to the nature of
 
the transactions entered into with that counterparty. These exposures
 
require specific approval within the credit approval
process. The Bank measures and manages
 
specific wrong-way risk exposures in the
 
same manner as direct loan obligations
 
and controls them by way of
approved credit facility limits.
The Bank uses the standardized approach
 
for counterparty credit risk to calculate
 
the EAD amount, which is defined by OSFI as
 
a multiple of the summation of
replacement cost and potential future exposure,
 
to estimate the risk and determine regulatory
 
capital requirements for derivative exposures.
Credit Valuation Adjustment Risk
The Bank maintains policies and procedures
 
that govern the valuation and hedging of
 
Credit Valuation Adjustment (CVA) risk. These policies, procedures and
associated results are regularly reviewed and
 
approved by senior management. While
 
CVA risk, capital and hedging is managed and owned by a
 
dedicated
business function, the independent Risk
 
Management function oversees the process,
 
including the effectiveness of hedges, reporting
 
and monitoring for
compliance to policies and frameworks and
 
adherence to risk appetite. Quantitative
 
models used for CVA risk and CVA capital comply with TD’s Model Risk
Management Framework.
Validation of the Credit Risk Rating System
Credit risk rating systems and methodologies
 
are independently validated on a regular
 
basis to verify that they remain accurate predictors
 
of risk. The validation
process includes the following considerations:
●
 
Risk parameter estimates – PDs, LGDs, and
 
EADs are reviewed and updated against actual
 
loss experience to verify that estimates
 
continue to be reasonable
predictors of potential loss.
●
 
Model performance – Estimates continue
 
to be discriminatory, stable, and predictive.
●
 
Data quality – Data used in the risk rating
 
system is accurate, appropriate, and sufficient.
●
 
Assumptions – Key assumptions underlying
 
the development of the model remain
 
valid for the current portfolio and environment.
Risk Management verifies that the credit
 
risk rating system complies with the Bank’s
 
Model Risk Policy. At least annually, the Risk Committee is informed of the
performance of the credit risk rating system.
 
The Risk Committee must approve any material
 
changes to the Bank’s credit risk rating system.
Credit Risk Mitigation
 
The techniques the Bank uses to reduce or
 
mitigate credit risk include written policies
 
and procedures to value and manage financial
 
and non-financial security
(collateral) and to review and negotiate netting
 
agreements. The amount and type of
 
collateral, and other credit risk mitigation
 
techniques required, are based on
the Bank’s own assessment of the borrower’s
 
or counterparty’s credit quality and capacity
 
to pay.
In the Retail and Commercial banking businesses,
 
security for loans is primarily non-financial
 
and includes residential real estate, real
 
estate under
development, commercial real estate, automobiles,
 
and other business assets, such as accounts
 
receivable, inventory, and fixed assets. In the Wholesale Banking
business, a large portion of loans are
 
to investment grade borrowers where no security
 
is pledged. Non-investment grade borrowers
 
typically pledge business
assets in the same manner as commercial
 
borrowers. Common standards across the Bank
 
are used to value collateral, determine
 
frequency of recalculation, and
to document, register, perfect, and monitor collateral.
The Bank mitigates derivative counterparty
 
exposure using mitigation strategies
 
that include master netting agreements,
 
collateral pledging, and central clearing
houses. Master netting agreements allow
 
the Bank to offset and arrive at a net obligation
 
amount, whereas collateral agreements allow
 
the Bank to secure the
Bank’s exposure. Security for derivative exposures
 
is primarily financial and includes
 
cash and negotiable securities issued by highly
 
rated governments and
investment grade issuers. Central clearing houses
 
further reduce bilateral credit risk by taking
 
the opposite position to each trade.
 
In all but exceptional situations, the Bank
 
secures collateral by taking possession and
 
controlling it in a jurisdiction where it can legally
 
enforce its collateral
rights. In exceptional situations and when demanded
 
by the Bank’s counterparty, the Bank holds or pledges collateral
 
with an acceptable third-party custodian.
 
The
Bank documents all such third party arrangements
 
with industry standard agreements.
Occasionally, the Bank may take guarantees to reduce the risk in
 
credit exposures. For credit risk exposures
 
subject to the IRB approaches, the Bank only
recognizes irrevocable guarantees for
 
Commercial Banking and Wholesale Banking
 
credit exposures that are provided by entities
 
with a better risk rating than that
of the borrower or counterparty to the
 
transaction.
The Bank makes use of credit derivatives
 
to mitigate credit risk. The credit, legal, and
 
other risks associated with these transactions
 
are controlled through well-
established procedures. The Bank’s policy is
 
to enter into these transactions with investment
 
grade financial institutions and transact
 
predominantly on a
collateralized basis. Credit risk to these counterparties
 
is managed through the same approval,
 
limit, and monitoring processes the Bank
 
uses for all counterparties
for which it has credit exposure.
The Bank uses appraisals as well as valuations
 
via automated valuation models (AVMs) to support property values
 
when adjudicating loans collateralized by
residential property. AVMs are computer-based tools used to estimate or validate the
 
market value of residential property and uses
 
market comparables and price
trends for local market areas. The primary
 
risk associated with the use of these tools
 
is that the value of an individual property
 
may vary significantly from the
average for the market area. The Bank has
 
specific risk management guidelines addressing
 
the circumstances when they may be used,
 
and processes to
periodically validate AVMs including obtaining third-party appraisals.
Other Credit Risk Exposures
Non-trading Equity Exposures
 
The Bank applies the standardized approach
 
to calculate RWA on non-trading equity exposures.
 
Under the standardized approach, a
250
% risk weight is applied
to equity holdings with the exception of speculative
 
unlisted equities that receive a
400
% risk weight. Equity exposures to
 
sovereigns and holdings made under
legislated programs continue to follow the
 
OSFI prescribed risk weights of
0
%,
20
% or
100
%.
Securitization Exposures
 
The Bank applies risk weights to all securitization
 
exposures under the revised securitization
 
framework published by OSFI. The revised
 
securitization framework
includes a hierarchy of approaches to determine
 
capital treatment, and transactions that
 
meet the simple, transparent, and comparable
 
requirements that are
eligible for preferential capital treatment.
The Bank uses Internal Ratings-Based Approach
 
(SEC-IRBA) for qualified exposures.
 
Under SEC-IRBA, risk weights are determined
 
using a loss coverage
model that quantifies and monitors the level
 
of risk. The SEC-IRBA also considers
 
credit enhancements available for loss protection.
For externally rated exposures that do not
 
qualify for SEC-IRBA, the Bank uses an
 
External Ratings-Based Approach (SEC-ERBA).
 
Risk weights are assigned
to exposures using external ratings by external
 
rating agencies, including Moody’s and S&P. The SEC-ERBA also takes into account
 
additional factors, including
the type of the rating (long-term or short-term),
 
maturity, and the seniority of the position.
 
For exposures that do not qualify for SEC-IRBA
 
or SEC-ERBA, and are held by an ABCP
 
issuing conduit, the Bank uses the
 
Internal Assessment Approach
(IAA).
Under the IAA, the Bank considers all relevant
 
risk factors in assessing the credit quality
 
of these exposures, including those published
 
by the Moody’s and S&P
rating agencies. The Bank also uses loss
 
coverage models and policies to quantify
 
and monitor the level of risk, and facilitate
 
its management. The Bank’s IAA
process includes an assessment of the extent
 
by which the enhancement available for loss
 
protection provides coverage of expected
 
losses. The levels of
stressed coverage the Bank requires for each
 
internal risk rating are consistent with the
 
rating agencies’ published stressed factor
 
requirements for their equivalent
external ratings by asset class. Under the
 
IAA, exposures are multiplied by OSFI prescribed
 
risk weights to calculate RWA for capital purposes.
 
For exposures that do not qualify for SEC-IRBA,
 
SEC-ERBA or the IAA, the Bank
 
uses the SA (SEC-SA). Under SEC-SA,
 
the primary factors that determine the
risk weights include the asset class of the underlying
 
loans, the seniority of the position, the level
 
of credit enhancements, and historical
 
delinquency rates.
Irrespective of the approach being used to
 
determine the risk weights, all exposures are
 
assigned an internal risk rating-based
 
on the Bank’s assessment, which
must be reviewed at least annually. The ratings scale TD uses corresponds
 
to the long-term ratings scales used by
 
the rating agencies.
 
The Bank’s internal rating process is subject
 
to all of the key elements and principles of
 
the Bank’s risk governance structure, and is managed
 
in the same way
as outlined in this “Credit Risk” section.
 
The Bank uses the results of the internal rating
 
in all aspects of its credit risk management,
 
including performance tracking, control mechanisms,
 
and
management reporting.
Market Risk
Trading Market Risk is the risk of loss from financial instruments
 
held in trading portfolios due to adverse
 
movements in market factors. These market
 
factors
include interest rates, foreign exchange rates,
 
equity prices, commodity prices, credit
 
spreads, and their respective volatilities.
Structural (Non-Trading) Market Risk is the risk of loss
 
on the balance sheet or volatility in earnings
 
from traditional banking activities, such as personal
 
and
commercial banking products (loans and
 
deposits), as well as related funding, investments
 
and high-quality liquid assets (HQLA),
 
due to adverse movements in
market factors. These market factors are primarily
 
interest rates, and foreign exchange rates.
The Bank is exposed to market risk in its
 
trading and investment portfolios, as well
 
as through its non-trading activities. The
 
Bank is an active participant in the
market through its trading and investment
 
portfolios, seeking to realize returns
 
for the Bank through careful management of its
 
positions and inventories. In the
Bank’s non trading activities, it is exposed to
 
market risk through the everyday banking transactions
 
that the Bank executes with its customers.
MARKET RISK IN TRADING ACTIVITIES
The overall objective of the Bank’s trading businesses
 
is to provide wholesale banking services,
 
including facilitation and liquidity, to clients of the Bank. The Bank
must take on risk in order to provide effective
 
service in markets where its clients trade.
 
In particular, the Bank needs to hold inventory, act as principal to facilitate
client transactions, and underwrite new issues.
 
The Bank also trades in order to have in-depth
 
knowledge of market conditions to provide
 
the most efficient and
effective pricing and service to clients, while balancing
 
the risks inherent in its dealing activities.
WHO MANAGES MARKET RISK IN TRADING
 
ACTIVITIES
Primary responsibility for managing market
 
risk in trading activities lies with Wholesale
 
Banking, with oversight from the Market
 
Risk function within Risk
Management. The Global Market Risk
 
Council meets regularly to review the
 
market risk profile and trading results
 
of the Bank’s trading businesses. The
committee is chaired by the Vice President,
 
Head of Market Risk, and includes Wholesale
 
Banking senior management.
HOW TD MANAGES MARKET RISK IN TRADING
 
ACTIVITIES
Market risk plays a key part in the assessment
 
of trading business strategies. The
 
process for the Bank to launch new trading initiatives,
 
or expand existing ones,
involves an assessment of risk with respect
 
to the Bank’s risk appetite and business expertise
 
and an assessment of the appropriate infrastructure
 
required to
monitor, control, and manage the risk. The Trading Market Risk Framework
 
outlines the management of trading market
 
risk and incorporates risk appetite, risk
-80
-70
-60
-50
-40
-30
-20
-10
0
10
20
30
40
50
11/1/2024
11/12/2024
11/21/2024
12/2/2024
12/11/2024
12/20/2024
1/2/2025
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1/22/2025
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2/20/2025
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3/21/2025
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8/15/2025
8/26/2025
9/4/2025
9/15/2025
9/24/2025
10/3/2025
10/14/2025
10/23/2025
TOTAL VALUE-AT-RISK
 
AND TRADING NET REVENUE
(millions of Canadian dollars)
 
Trading net revenue
 
Value-at-Risk
governance structures, risk identification,
 
risk measurement, and risk control.
 
The Trading Market Risk Framework is maintained by
 
Risk Management and
supports alignment with the Bank’s risk appetite
 
for trading market risk.
Processes are in place to classify positions
 
as either trading book or banking book for
 
the purpose of calculating regulatory capital, per
 
OSFI CAR Guidelines.
Policies define the governance and monitoring
 
requirements of internal risk transfers.
Trading Limits
The Bank sets trading limits that are
 
consistent with the approved business strategy
 
for each business and its tolerance for the
 
associated market risk, aligned to
its market risk appetite. In setting limits, the
 
Bank takes into account market volatility, market liquidity, organizational experience,
 
and business strategy. Limits are
prescribed at the Wholesale Banking level
 
in aggregate, as well as at more granular
 
levels.
The core market risk limits are based on
 
the key risk drivers in the business and includes
 
notional, credit spread, yield curve shift,
 
price, and volatility limits.
 
Another primary measure of trading limits
 
is VaR, which the Bank uses to monitor and control overall
 
risk levels. VaR measures the adverse impact that potential
changes in market rates and prices could
 
have on the value of a portfolio over a
 
specified period of time.
At the end of each day, risk positions are compared with risk limits,
 
and any excesses are reported in accordance
 
with established market risk policies and
procedures.
Calculating VaR
The Bank computes total VaR on a daily basis by combining the General
 
Market Risk (GMR) and Idiosyncratic Debt
 
Specific Risk (IDSR) associated with the
Bank’s trading positions.
GMR is determined by creating a distribution
 
of potential changes to the market value
 
of the current portfolio using historical simulation.
 
The Bank values the
current portfolio using the market price and rate
 
changes of the most recent
259
 
trading days for equity, interest rate, foreign exchange, credit, and
 
commodity
products. GMR is computed as the threshold
 
level that portfolio losses are not expected
 
to exceed more than
one
 
out of every
100
 
trading days. A
one-day
 
holding
period is used for GMR calculation.
IDSR measures idiosyncratic (single-name) credit
 
spread risk for credit exposures in the trading
 
portfolio using Monte Carlo simulation.
 
The IDSR model is
based on the historical behaviour of five-year idiosyncratic
 
credit spreads. Similar to GMR, IDSR is
 
computed as the threshold level that portfolio
 
losses are not
expected to exceed more than one out of every
100
 
trading days. IDSR is measured for a
ten-day
 
holding period.
The following graph discloses daily one-day
 
VaR usage and trading net revenue, reported on a TEB,
 
within Wholesale Banking. Trading net revenue includes
trading income and net interest income related
 
to positions within the Bank’s market risk capital
 
trading books. For the year ending October 31,
 
2025, there
were
18
 
days of trading losses and trading net
 
revenue was positive for
93
% of the trading days, reflecting normal
 
trading activity. Losses in the year did not
exceed VaR on any trading day.
VaR is a valuable risk measure but it should be used in the
 
context of its limitations, for example:
●
 
VaR uses historical data to estimate future events, which limits
 
its forecasting abilities;
●
 
it does not provide information on losses beyond
 
the selected confidence level; and
●
 
it assumes that all positions can be liquidated
 
during the holding period used for VaR calculation.
The Bank continuously improves its VaR methodologies and incorporates
 
new risk measures in line with market
 
conventions, industry practices, and regulatory
requirements.
 
To mitigate some of the shortcomings of VaR, the Bank uses additional metrics designed for risk
 
management.
 
This include Stress Testing as well as
sensitivities to various market risk factors.
The following table presents the end of year, average, high,
 
and low usage of TD’s portfolio metrics.
TABLE 44: PORTFOLIO MARKET RISK
 
MEASURES
(millions of Canadian dollars)
2025
2024
As at
Average
High
Low
As at
Average
High
Low
Interest rate risk
$
10.3
$
10.5
$
21.1
$
1.6
$
8.4
$
16.8
$
27.7
$
5.1
Credit spread risk
15.8
19.3
27.4
13.7
25.1
30.0
40.5
18.9
Equity risk
14.1
11.0
29.3
6.6
7.7
7.8
12.0
5.2
Foreign exchange risk
4.6
4.1
10.2
1.2
5.2
2.9
7.8
1.2
Commodity risk
37.6
24.6
46.0
3.8
6.0
4.5
11.5
2.2
Idiosyncratic debt specific risk
13.1
19.8
28.0
13.1
18.2
20.3
29.7
13.8
Diversification effect
1
(41.7)
(52.7)
n/m
2
n/m
(45.0)
(50.8)
n/m
n/m
Total Value-at-Risk (one-day)
53.8
36.6
58.9
20.9
25.6
31.5
44.9
21.8
1
 
The aggregate VaR is less than the sum of the VaR
 
of the different risk types due to risk offsets resulting from portfolio diversification.
2
 
Not meaningful. It is not meaningful to compute a diversification effect because the high and low may
 
occur on different days for different risk types.
Validation of VaR Model
 
The Bank uses a back-testing process
 
to compare the actual profits and losses
 
to VaR to review their consistency with the statistical results of
 
the VaR model.
Stress Testing
The Bank’s trading business is subject to an overall
 
global stress test limit. In addition, global
 
businesses have stress test limits, and each
 
broad risk class has an
overall stress test threshold. Stress scenarios
 
are designed to model extreme economic events,
 
replicate worst-case historical experiences,
 
or introduce severe,
but plausible, hypothetical changes in
 
key market risk factors. The stress testing
 
program includes scenarios developed using
 
actual historical market data during
periods of market disruption, in addition
 
to hypothetical scenarios developed by
 
Risk Management. Stress tests are produced
 
and reviewed regularly. The events
the Bank has modelled include the 1987 equity
 
market crash, the 1998 Russian debt default
 
crisis, the aftermath of September 11, 2001, the 2007 ABCP crisis,
the credit crisis of Fall 2008, the Brexit referendum
 
of June 2016, and the COVID-19 pandemic
 
of 2020.
WHO MANAGES STRUCTURAL (NON-TRADING)
 
MARKET RISK
The TBSM group manages the market risks
 
of traditional non-trading banking activities,
 
while the Wholesale Banking business
 
manages non-trading market risks
within that segment,
 
all subject to oversight from the Asset
 
Liability and Capital Committee (ALCO).
 
The Treasury CRO / Non-Trading Market Risk function within
Risk Management provides independent oversight,
 
governance, and control of these market
 
risks. The Risk Committee reviews and approves
 
key non-trading
market risk policies and monitors the Bank’s
 
positions and compliance with these policies
 
through regular reporting and updates from
 
senior management.
HOW TD MANAGES STRUCTURAL (NON-TRADING)
 
MARKET RISK
Non-trading interest rate risk, if not managed,
 
has the potential to increase earnings
 
volatility and generate losses without contributing
 
long-term expected value.
To
manage this risk, the Bank’s non-trading asset and
 
liability profile is managed in accordance
 
with a target and series of limits to control
 
the impact of interest
rate changes on the Bank’s NII, while maintaining
 
the Bank’s economic value sensitivity within risk
 
appetite.
 
Managing Structural Interest Rate Risk
Interest rate risk is the impact that changes
 
in interest rates could have on the Bank’s
 
margins, earnings, and economic value. Interest
 
rate risk management is
designed to generate a predictable, high-quality
 
NII stream over time. The Bank has adopted
 
a disciplined hedging approach to manage
 
the net interest income
from its asset and liability positions. Key aspects
 
of this approach are:
•
 
Evaluating and managing the impact of rising
 
or falling interest rates on net interest income
 
and economic value, and developing strategies
 
to manage overall
sensitivity to rates across varying interest
 
rate scenarios;
•
 
Modelling the expected impact of customer
 
behaviour on TD’s products (e.g., how actively
 
customers exercise embedded options,
 
such as prepaying a loan or
redeeming a deposit before its maturity date);
 
•
 
Assigning target-modelled maturity profiles
 
for non-maturity assets, liabilities, and equity;
•
 
Measuring the margins of TD’s banking products
 
on a fully-hedged basis, including the impact
 
of financial options that are granted
 
to customers; and
 
•
 
Developing and implementing strategies
 
to stabilize net interest income from all retail and
 
commercial banking products.
The Bank is exposed to the interest rate risk
 
from “mismatched positions” which occur
 
when asset and liability principal and interest
 
cash flows have different
repricing or maturity dates. The Bank measures
 
this risk based on an assessment of:
 
contractual cash flows, product-embedded
 
optionality, customer behaviour
expectations and the modelled maturity
 
profiles for non-maturity products. To manage this risk, the Bank primarily
 
uses financial derivatives, wholesale
investments and funding transactions.
 
The Bank also measures its exposure
 
to non-maturity liabilities, such as core deposits,
 
by assessing interest rate elasticity and
 
balance permanence using
historical data and business judgment. Fluctuations
 
of non-maturity deposits can occur due
 
to factors such as interest rate and equity
 
market movements, and
changes to customer liquidity preferences.
 
Banking product optionality, whether from freestanding options
 
such as mortgage rate commitments or options
 
embedded within loans and deposits, expose
 
the
Bank to significant financial risk. To manage these exposures, the Bank uses
 
a dynamic hedging approach designed
 
to replicate the payoff of a purchased option.
•
Rate Commitments
: The Bank measures its exposure from
 
freestanding mortgage rate commitment
 
options using an expected funding profile based
 
on
historical experience. Customers’ propensity
 
to fund, and their preference for fixed or
 
floating rate mortgage products, is influenced
 
by factors such as market
mortgage rates, client characteristics, and
 
seasonality.
•
Asset Prepayment and other Embedded
 
Options
: The Bank models its exposure to options
 
embedded in some of its products based on
 
analyses of
customer behaviour. Examples of modeled options are
 
the right to prepay residential mortgage
 
loans, and the right to early redeem some
 
term deposit products.
For mortgages, econometric models are
 
used to model prepayments and the effects of
 
prepayment behaviour to the Bank. In general,
 
mortgage prepayments
are also affected by factors such as rate incentive
 
along with mortgage age, home prices,
 
gross domestic product (GDP) growth,
 
etc. A combined impact is also
assessed to determine a core liquidation
 
speed that is independent of market incentives.
 
A similar analysis is undertaken for other products
 
with embedded
optionality.
Structural Interest Rate Risk Measures
The primary measures for this risk are Economic
 
Value of Shareholders’ Equity (EVE) Sensitivity and Net Interest
 
Income Sensitivity (NIIS).
EVE Sensitivity measures the impact of a
 
specified interest rate shock to the net present
 
value of the Bank’s banking book assets, liabilities,
 
and certain off-
balance sheet items. It reflects a measurement
 
of the potential present value impact on
 
shareholders’ equity without an assumed term
 
profile for the management
of the Bank’s own equity and excludes product
 
margins.
 
NIIS measures the change in NII over a
 
twelve-month horizon resulting from resetting
 
interest rates on banking book assets,
 
liabilities and certain off-balance
sheet items under a specified interest rate
 
shock scenario.
 
The Bank’s Market Risk policy sets overall limits
 
on structural interest rate risk measures.
 
These limits are periodically reviewed and approved
 
by the Risk
Committee. In addition to the Board policy limits,
 
book-level risk limits for the Bank’s management
 
of non-trading interest rate risk are set by
 
Risk Management.
Exposures against these limits are routinely
 
monitored and reported, and breaches of the
 
Board limits, if any, are escalated to both the ALCO and the Risk
Committee.
TABLE 45: STRUCTURAL INTEREST
 
RATE SENSITIVITY MEASURES
(millions of Canadian dollars)
As at
October 31, 2025
October 31, 2024
EVE
NII
1,2
EVE
1
NII
1
Sensitivity
1,2
Sensitivity
1,2,3
Sensitivity
1
Sensitivity
1,3
Canadian
U.S.
 
Total
Canadian
U.S.
Total
Total
Total
dollar
4
dollar
dollar
4
dollar
Before-tax impact of
 
 
100 bps increase in rates
$
(957)
$
(1,558)
$
(2,515)
$
400
$
390
$
790
$
(2,489)
$
720
 
100 bps decrease in rates
865
1,227
2,092
(441)
(419)
(860)
1,914
(983)
1
Does not include exposures from Wholesale Banking.
2
Effective July 31, 2025, the sensitivity measures are reported by currency to better differentiate
 
NIIS to movements in underlying rates.
3
Represents the twelve-month NII exposure to an immediate and sustained shock in rates, and may include adjustments
 
for non-recurring items.
4
 
Includes other currency exposures.
As at October 31, 2025, an immediate and
 
sustained 100 bps increase in interest rates
 
would have a negative impact to the Bank’s EVE
 
of $
2,515
 
million, an
increase of $
26
 
million from last year, and a positive impact to the Bank’s NII of
 
$
790
 
million, an increase of $
70
 
million from last year. An immediate and sustained
100 bps decrease in interest rates would
 
have a positive impact to the Bank’s EVE of $
2,092
 
million, an increase of $
178
 
million from last year, and a negative
impact to the Bank’s NII of $
860
 
million, a decrease of $
123
 
million from last year. The year-over-year increase in EVE
 
Sensitivity is primarily attributed to an
increase in net fixed rate assets held, commensurate
 
with growth in book capital. Year-over-year changes in NII Sensitivity
 
are largely related to Treasury hedging
alongside marginal changes in product mix. As
 
at October 31, 2025, reported EVE
 
and NII Sensitivities remain within the Bank’s risk
 
appetite and established
Board limits.
 
Managing Non-trading Foreign Exchange
 
Risk
Foreign exchange risk refers to losses that
 
could result from changes in foreign-currency
 
exchange rates. Assets and liabilities that
 
are denominated in foreign
currencies create foreign exchange risk.
 
The Bank is exposed to non-trading foreign exchange
 
risk primarily from its investments in foreign
 
operations. When the Bank’s foreign currency
 
assets are
greater or less than its liabilities in that
 
currency, they create a foreign currency open position. An adverse
 
change in foreign exchange rates can impact
 
the Bank’s
reported net income and shareholders’ equity, and its capital ratios.
 
To
minimize the impact of an adverse foreign exchange
 
rate change on certain capital ratios, the
 
Bank’s net investments in foreign operations are
 
hedged so
that changes in certain capital ratios fall
 
within risk appetite, in response to movement
 
in foreign exchange rates. The Bank
 
does not generally hedge the earnings
of foreign subsidiaries which results in
 
changes to the Bank’s consolidated earnings when relevant
 
foreign exchange rates change.
Other Non-trading Market Risks
Other structural market risks monitored on a regular
 
basis include:
●
Basis Risk
– The Bank is exposed to risks related to
 
the difference in various market indices.
●
Equity Risk
 
–
The Bank is exposed to non-trading equity
 
risk from investment securities designated
 
at FVOCI, equity-linked guaranteed investment
 
certificate
product offerings and share-based compensation plans
 
where certain employees are awarded
 
share units equivalent to the Bank’s common
 
shares as
compensation for services provided to
 
the Bank. These share units are recorded
 
as a liability over the vesting period and revalued
 
at each reporting period
until settled in cash, and changes in the Bank’s
 
share price can impact non-interest expenses.
 
The Bank uses equity derivative instruments
 
to manage its non-
trading equity risk.
Managing Investment Portfolios
The Bank manages a securities portfolio
 
that is integrated into the overall asset and
 
liability management process for traditional
 
banking activities. The securities
portfolio is comprised of high-quality, low-risk securities and
 
managed in a manner appropriate to the attainment
 
of the following goals: (1) to generate a
 
targeted
credit of funds to deposit balances that are in
 
excess of loan balances; (2) to provide
 
a sufficient pool of liquid assets to meet deposit and
 
loan fluctuations and
overall liquidity management objectives; (3)
 
to provide eligible securities to meet collateral
 
and cash management requirements; and
 
(4) to manage the target
interest rate risk profile of the balance sheet.
 
The Risk Committee reviews and approves
 
the Enterprise Investment Policy that sets out
 
limits for the Bank’s
investment portfolio. In addition, the Wholesale
 
Banking and Insurance businesses also hold
 
investments that are managed separately.
WHY NET INTEREST MARGIN FLUCTUATES OVER TIME
As previously noted, the Bank’s approach to structural
 
(non-trading) market risk is designed
 
to generate stable and predictable earnings
 
over time, regardless of
cash flow mismatches and the exercise of
 
options granted to customers. This approach
 
also creates margin certainty on loan and
 
deposit profitability as they are
booked. Despite this approach however, the Bank’s NIM is subject
 
to change over time for the following reasons
 
(among others):
●
 
Differences in margins earned on new and renewing
 
products relative to the margin previously
 
earned on matured products;
●
 
Weighted-average margin impact from changes in
 
business and product mix;
●
 
Changes in the basis between certain market
 
indices;
●
 
Potential lags in changing product prices
 
in response to changes in market interest rates,
 
including rate-sensitive deposit pricing;
●
 
Changes from the repricing of hedging strategies
 
to manage the investment profile of the
 
Bank’s non-rate sensitive deposits; and
●
 
Margin changes from the portion of the Bank’s deposits
 
that are non-rate sensitive but not expected
 
to be longer term in nature, resulting in a
 
shorter term
investment profile and higher sensitivity
 
to short-term rates.
The general level of interest rates will affect the return
 
the Bank generates on its modelled
 
maturity profile for core non-rate sensitive deposits
 
and the investment
profile for its net equity position as it evolves
 
over time. The general level of market interest
 
rate volatility is also a key driver of
 
some modelled option exposures,
and will affect the cost of hedging such exposures.
 
The Bank’s approach to managing these factors
 
tends to moderate their impact over time,
 
resulting in a more
predictable NII stream over time.
Insurance
Risk
Insurance risk is the risk of financial loss due
 
to actual experience emerging differently
 
from expectations in insurance product pricing
 
and/or design, underwriting,
reinsurance protection, and claims or reserving
 
either at the inception of an insurance or reinsurance
 
contract, during the lifecycle of the claim or at
 
the valuation
date. Unfavourable experience could emerge
 
due to adverse fluctuations in timing, actual
 
size, frequency of claims (for example, driven
 
by non-life premium risk,
non-life reserving risk, catastrophic risk, mortality
 
risk, morbidity risk, and longevity risk),
 
policyholder behaviour, or associated expenses.
Insurance contracts provide financial protection
 
by transferring insured risks to the issuer
 
in exchange for premiums. The Bank is
 
engaged in insurance businesses
relating to property and casualty insurance, life
 
and health insurance, and reinsurance, through
 
various subsidiaries; it is through these businesses
 
that the Bank is
exposed to insurance risk.
WHO MANAGES INSURANCE RISK
Senior management within the insurance business
 
units has primary responsibility for
 
managing insurance risk with oversight by
 
the CRO for Insurance, who
reports into the Bank’s Risk Management Group.
 
The Bank’s Audit Committee and the Bank’s Corporate
 
Governance Committee respectively act
 
as the Audit and
Conduct review committees for the Canadian
 
insurance company subsidiaries. The insurance
 
company subsidiaries also have their own
 
boards of directors who
provide additional risk management oversight.
HOW TD MANAGES INSURANCE RISK
The Bank’s risk governance practices are designed
 
to support independent oversight and
 
control of risk within the insurance business.
 
The TD Insurance Risk
Committee and its subcommittees provide
 
critical oversight of the risk management
 
activities within the insurance business
 
and monitor compliance with insurance
risk policies. The Bank’s Insurance Risk Management
 
Framework and Insurance Risk Policy collectively
 
outline the internal risk and control structure
 
to manage
insurance risk and include risk appetite, policies,
 
processes, as well as limits and governance.
 
These documents are maintained by Risk Management
 
and support
alignment with the Bank’s risk appetite for insurance
 
risk.
The assessment of insurance contract liabilities
 
(remaining coverage and incurred claims)
 
is central to the insurance operation.
 
TD Insurance establishes reserves
to cover estimated future payments (including
 
loss adjustment expenses) on all claims
 
or terminations/surrenders of premium arising
 
from insurance contracts
underwritten. The reserves cannot be established
 
with complete certainty and represent
 
management’s best estimate for future payments.
 
As such, TD Insurance
regularly monitors estimates against actual
 
and emerging experience and adjusts reserves
 
as appropriate if experience emerges
 
differently than anticipated.
Liabilities for incurred claims and liabilities
 
for remaining coverage are governed
 
by the Bank’s general insurance and life and health
 
reserving risk policies.
Sound product design is an essential element
 
of managing risk. In addition, TD’s insurance
 
products are priced considering required
 
capital levels, with targeted
returns set by management. The Bank’s exposure
 
to insurance risk is mostly short-term in nature
 
as the principal underwriting risk relates to personal
 
automobile
and home insurance and small commercial insurance.
Insurance market cycles, as well as changes
 
in insurance legislation, the regulatory
 
environment, judicial environment, trends
 
in court awards, climate patterns,
pandemics or other applicable public health emergencies,
 
and the economic environment may impact
 
the performance of the insurance business.
 
We maintain
premium, pricing and underwriting policies or
 
standards to help manage these inherent risks.
There is also exposure to concentration risk
 
associated with general insurance and
 
life and health insurance coverage. Exposure
 
to insurance risk concentration is
managed with an Accumulation Management
 
Policy and through established underwriting
 
guidelines, limits, and authorization levels
 
that govern the acceptance of
risk. Concentration of insurance risk is also
 
mitigated through the purchase of reinsurance.
 
The insurance business’ reinsurance programs
 
are governed by
catastrophe and reinsurance risk management
 
policies.
Strategies are in place to help manage the risk
 
to the Bank’s reinsurance business. Underwriting
 
risk on business assumed is managed
 
through a policy that limits
exposure to certain types of business and countries.
 
The vast majority of reinsurance treaties
 
are annually renewable, which minimizes long-term
 
risk. Pandemic
exposure is reviewed and estimated annually
 
within the reinsurance business to manage
 
concentration risk.
Liquidity Risk
The risk of having insufficient cash or collateral
 
to meet financial obligations and an inability
 
to, in a timely manner, raise funding or monetize assets at
 
a non-
distressed price. Financial obligations can arise
 
from deposit withdrawals, debt maturities,
 
commitments to provide credit or liquidity
 
support or the need to pledge
additional collateral.
TD’S LIQUIDITY RISK APPETITE
TD follows a disciplined liquidity management
 
program, which is subject to risk governance
 
and oversight, and is designed to maintain
 
sufficient liquidity to permit
the Bank to operate through a significant
 
liquidity event without relying on extraordinary
 
central bank assistance. The Bank maintains
 
access to a stable and
diversified funding base and aligns its funding
 
profile with that of the assets and contingent
 
obligations it supports.
WHO MANAGES LIQUIDITY RISK
The Risk Committee, the ALCO and
 
the Treasurer are accountable for the identification,
 
assessment, control, monitoring and oversight
 
of liquidity risk.
•
 
The Risk Committee regularly reviews the
 
Bank’s liquidity position and approves the Bank’s
 
Liquidity Risk Management Framework
 
biennially and related
policies annually.
•
 
The Bank’s ALCO is responsible for establishing
 
effective management structures and practices
 
to ensure appropriate measurement, management,
 
and
governance of liquidity risk.
 
•
 
The Global Liquidity & Funding (GLF)
 
Committee, a subcommittee of the ALCO
 
comprised of senior management from
 
Treasury, Wholesale Banking and Risk
Management, identifies and monitors the Bank’s liquidity
 
risks.
 
In addition to our committee oversight framework,
 
liquidity risk management activities
 
are subject to the three lines of defence governance
 
model. Treasury, the
first line of defence for the management of liquidity
 
risk, is subject to independent second line
 
challenge and oversight by Risk Management.
 
TD’s Internal Audit is
the third line of defence. The three lines of
 
defence are independent of the business
 
whose activities generate liquidity risks.
HOW TD MANAGES LIQUIDITY RISK
The Bank manages the liquidity profile of
 
its businesses in accordance with its defined
 
liquidity risk appetite.
 
The Bank’s strategies, plans and governance
practices underpin an integrated liquidity risk
 
management program that is designed to reduce
 
exposure to liquidity risk and maintain
 
compliance with regulatory
requirements. A combination of quantitative and
 
qualitative measures is used to control liquidity
 
risk with the objective of maintaining sufficient liquidity
 
to satisfy
the Bank’s operational needs and client commitments
 
in both normal and stress conditions.
 
The Bank targets a 90-day survival horizon
 
under a combined bank-
specific and market-wide stress scenario,
 
and surpluses over regulatory requirements,
 
including those prescribed by OSFI’s Liquidity
 
Adequacy Requirements
(LAR) guideline. The Bank’s funding program emphasizes
 
a stable, diversified deposit base as
 
a core source of funding and maintains ready
 
access to wholesale
funding markets to diversify across terms,
 
funding types, and currencies. This approach
 
helps lower exposure to sudden contractions
 
of wholesale funding
capacity and minimizes structural liquidity
 
gaps. The Bank also maintains a contingency
 
funding plan (CFP) to enhance preparedness
 
to address potential liquidity
stress events.
 
The Bank’s internal stress testing informs the
 
management of liquidity risk. Among scenarios
 
considered is a severe combined stress event
 
resulting in elevated
liquidity requirements and a loss of confidence
 
in the Bank’s ability to meet obligations as
 
they come due. In addition to this bank-specific
 
event, this scenario
incorporates a market-wide liquidity
 
stress that materially reduces the availability
 
of funding for all institutions and decreases
 
the marketability of assets. The
Bank’s liquidity risk management policies stipulate
 
that the Bank must maintain a sufficient level of
 
liquid assets to support business growth,
 
and to cover stressed
liquidity requirements under the stress scenario
 
for a period of up to 90 days. Key elements
 
of the scenario include:
●
 
loss of access to wholesale funding including
 
repayment of maturing debt in the next 90
 
days;
●
 
accelerated deposit attrition or “run-off”;
●
 
increased utilization of available credit and liquidity
 
facilities; and
●
 
increased collateral requirements associated
 
with downgrades in the Bank’s credit ratings.
Internal measures and limits complement regulatory
 
liquidity requirements, such as the Liquidity
 
Coverage Ratio (LCR), the Net Stable Funding
 
Ratio (NSFR), and
the Net Cumulative Cash Flow (NCCF)
 
monitoring tool prescribed in OSFI’s LAR guidance.
 
The Bank’s liquidity is managed to the higher of its internal
 
liquidity
requirements and target buffers over the regulatory
 
minimums.
The Bank also considers regional regulatory
 
metrics as well as potential restrictions
 
on liquidity transferability in the calculation
 
of enterprise liquidity positions.
Accordingly, surplus liquidity domiciled in regulated subsidiaries
 
may be excluded from consolidated liquidity
 
positions as appropriate.
 
The Bank’s Funds Transfer Pricing process considers liquidity
 
risk as a key determinant of the cost
 
or credit of funds to businesses.
LIQUID ASSETS
The Bank’s unencumbered liquid assets could be
 
used to help address potential funding needs
 
arising from stress events. Liquid asset eligibility
 
considers
estimated stressed market values and
 
trading market depth, as well as operational,
 
legal, or other impediments to sale, rehypothecation
 
or pledging.
 
Assets held by the Bank to meet liquidity
 
requirements are summarized in the following
 
tables. The tables do not include assets held
 
within the Bank’s insurance
businesses as these are used to support insurance-specific
 
liabilities and capital requirements.
TABLE 46: SUMMARY OF LIQUID
 
ASSETS BY TYPE AND CURRENCY
(millions of Canadian dollars, except as noted)
As at
 
Securities
 
received as
 
collateral from
 
securities
 
financing and
 
Bank-owned
 
derivative
 
Total
Encumbered
 
Unencumbered
 
liquid assets
 
transactions
liquid assets
liquid assets
 
liquid assets
1
October 31, 2025
 
Cash and central bank reserves
$
17,966
$
–
$
17,966
$
1,130
$
16,836
Obligations of government, federal agencies, public sector
 
entities,
and multilateral development banks
2
112,902
117,718
230,620
95,245
135,375
Equities
18,403
4,111
22,514
19,146
3,368
Other debt securities
6,229
6,219
12,448
9,213
3,235
Other securities
–
–
–
–
–
Total Canadian dollar-denominated
155,500
128,048
283,548
124,734
158,814
Cash and central bank reserves
89,425
–
89,425
185
89,240
Obligations of government, federal agencies, public sector
 
entities,
and multilateral development banks
215,537
160,502
376,039
179,623
196,416
Equities
65,295
42,664
107,959
62,020
45,939
Other debt securities
77,703
17,744
95,447
29,212
66,235
Other securities
31,647
2,937
34,584
8,161
26,423
Total non-Canadian dollar-denominated
479,607
223,847
703,454
279,201
424,253
Total
$
635,107
$
351,895
$
987,002
$
403,935
$
583,067
October 31, 2024
 
Total Canadian dollar-denominated
163,269
117,083
280,352
110,064
170,288
Total non-Canadian dollar-denominated
482,052
179,665
661,717
247,478
414,239
Total
$
645,321
$
296,748
$
942,069
$
357,542
$
584,527
Unencumbered liquid assets include on-balance sheet assets, assets borrowed or purchased under resale agreements,
 
and other off-balance sheet collateral received less encumbered
liquid assets.
2
 
Includes National Housing Act Mortgage-Backed Securities (NHA MBS).
Unencumbered liquid assets held in The
 
Toronto-Dominion Bank, its domestic and foreign subsidiaries, and branches
 
are summarized in the following
 
table.
TABLE 47: SUMMARY OF UNENCUMBERED
 
LIQUID ASSETS BY BANK,
 
SUBSIDIARIES, AND BRANCHES
(millions of Canadian dollars)
As at
October 31
October 31
2025
2024
The Toronto-Dominion Bank (Parent)
$
257,722
$
237,005
Bank subsidiaries
306,961
314,306
Foreign branches
18,384
33,216
Total
$
583,067
$
584,527
FUNDING
The Bank has access to a variety of unsecured
 
and secured funding sources. The Bank’s
 
funding activities are conducted in accordance
 
with liquidity risk
management policies that require assets be
 
funded to the appropriate term and to a prudent
 
diversification profile.
The Bank’s primary approach to funding is
 
to maximize the use of deposits raised through
 
its personal, wealth and business banking
 
channels. The deposits
raised from these sources were approximately
64
% (October 31, 2024 –
63
%) of the Bank’s total funding. Non-personal
 
deposit funding as reflected below does
not include the Bank’s Wholesale Banking deposits
 
(including Corporate & Investment Banking).
TABLE 55: SUMMARY OF DEPOSIT
 
FUNDING
1
(millions of Canadian dollars)
As at
October 31, 2025
October 31, 2024
Personal
$
650,396
$
641,667
Non-personal
316,319
310,422
Total
$
966,715
$
952,089
1
The calculation methodology has been changed to reflect deposit funding from personal, wealth and business
 
banking channels.
WHOLESALE FUNDING
The Bank maintains various registered external
 
wholesale term (greater than 1 year) funding
 
programs to provide access to diversified
 
funding sources, including
asset securitization, covered bonds, and
 
unsecured wholesale debt. The Bank raises
 
term funding through Senior Notes, NHA MBS,
 
and notes backed by credit
card receivables (Evergreen Credit Card
 
Trust) and home equity lines of credit (Genesis Trust II). The Bank’s wholesale
 
funding is diversified by geography,
currency, and funding types. The Bank raises short-term (1 year
 
or less) funding using certificates of deposit
 
and commercial paper.
The Bank maintains depositor concentration
 
limits in respect of short-term wholesale
 
deposits so that it is not overly reliant
 
on individual depositors for funding.
The Bank further limits short-term wholesale
 
funding maturity concentration in an effort
 
to mitigate refinancing risk during a
 
stress event.
MATURITY ANALYSIS OF ASSETS, LIABILITIES, AND OFF-BALANCE SHEET COMMITMENTS
The following table summarizes on-balance
 
sheet and off-balance sheet categories by remaining
 
contractual maturity. The values of credit instruments reported in
the following table represent the maximum amount
 
of additional credit that the Bank could
 
be obligated to extend should such instruments
 
be fully drawn or
utilized. Since a significant portion of guarantees
 
and commitments are expected to expire
 
without being drawn upon, the total of the contractual
 
amounts is not
representative of expected future liquidity requirements.
 
These contractual obligations have an impact
 
on the Bank’s short-term and long-term liquidity
 
and capital
resource needs.
The maturity analysis presented does not depict
 
the degree of the Bank’s maturity transformation or
 
the Bank’s exposure to interest rate and liquidity risk.
 
The
Bank’s objective is to fund its assets appropriately
 
to protect against borrowing cost volatility
 
and potential reductions to funding market availability. The Bank
utilizes stable non-maturity deposits (chequing
 
and savings accounts) and term deposits
 
as the primary source of long-term funding
 
for the Bank’s non-trading
assets including personal and business
 
term loans and the stable balance of revolving
 
lines of credit. Additionally, the Bank issues long-term funding in
 
respect of
such non-trading assets and raises short-term
 
funding primarily to finance trading assets.
 
The liquidity of trading assets under stressed
 
market conditions is
considered when determining the appropriate
 
term of the funding.
TABLE 58: REMAINING CONTRACTUAL
 
MATURITY
(millions of Canadian dollars)
As at
October 31, 2025
No
Less than
1 to 3
3 to 6
6 to 9
9 months
Over 1 to
Over 2 to
Over
specific
1 month
months
months
months
to 1 year
2 years
5 years
5 years
maturity
Total
Assets
Cash and due from banks
$
7,512
$
–
$
–
$
–
$
–
$
–
$
–
$
–
$
–
$
7,512
Interest-bearing deposits with banks
106,857
724
39
–
–
–
–
–
1,797
109,417
Trading loans, securities, and other
1
4,243
5,867
5,219
3,647
4,107
10,100
33,372
31,052
122,529
220,136
Non-trading financial assets at fair value through
profit or loss
–
–
–
74
–
332
2,939
1,873
2,177
7,395
Derivatives
10,478
12,594
7,269
4,638
5,006
11,761
17,913
13,313
–
82,972
Financial assets designated at fair value through
profit or loss
271
226
543
649
251
1,396
2,715
935
–
6,986
Financial assets at fair value through other comprehensive
 
income
1,959
4,006
3,698
3,802
6,061
6,002
48,054
49,739
3,048
126,369
Debt securities at amortized cost, net of allowance
for credit losses
4,850
3,768
5,670
7,152
3,992
28,954
70,952
115,102
(1)
240,439
Securities purchased under reverse repurchase
 
agreements
2
164,872
40,541
28,394
6,906
4,840
786
739
–
–
247,078
Loans
Residential mortgages
 
3,463
7,240
16,334
25,284
23,462
78,900
112,140
48,240
–
315,063
Consumer instalment and other personal
1,115
2,652
6,373
9,240
7,052
31,673
96,668
37,975
66,285
259,033
Credit card
–
–
–
–
–
–
–
–
41,662
41,662
Business and government
 
59,741
12,360
13,577
17,631
17,491
44,950
89,699
56,975
33,519
345,943
Total loans
64,319
22,252
36,284
52,155
48,005
155,523
298,507
143,190
141,466
961,701
Allowance for loan losses
–
–
–
–
–
–
–
–
(8,689)
(8,689)
Loans, net of allowance for loan losses
64,319
22,252
36,284
52,155
48,005
155,523
298,507
143,190
132,777
953,012
Goodwill
3
–
–
–
–
–
–
–
–
18,980
18,980
Other intangibles
3
–
–
–
–
–
–
–
–
3,409
3,409
Land, buildings, equipment, other depreciable
assets, and right-of-use assets
3
–
3
2
4
10
86
679
3,333
6,015
10,132
Deferred tax assets
–
–
–
–
–
–
–
–
5,388
5,388
Amounts receivable from brokers, dealers, and clients
27,345
–
–
–
–
–
–
–
–
27,345
Other assets
5,207
2,630
3,076
521
485
199
412
507
14,951
27,988
Total assets
$
397,913
$
92,611
$
90,194
$
79,548
$
72,757
$
215,139
$
476,282
$
359,044
$
311,070
$
2,094,558
Liabilities
Trading deposits
$
3,346
$
4,147
$
5,288
$
2,790
$
4,967
$
6,314
$
7,931
$
3,099
$
–
$
37,882
Derivatives
10,690
13,350
8,930
7,039
4,359
8,034
15,169
11,785
–
79,356
Securitization liabilities at fair value
–
1,096
570
1,069
739
2,248
13,667
5,894
–
25,283
Financial liabilities designated at
 
fair value through profit or loss
 
48,996
46,231
57,600
26,665
17,192
652
3
–
296
197,635
Deposits
4,5
Personal
15,300
30,652
24,351
17,289
19,285
17,296
12,784
2
513,437
650,396
Banks
15,232
96
56
–
49
2
2
–
11,796
27,233
Business and government
18,548
20,498
19,236
15,276
10,272
51,067
56,791
32,004
365,783
589,475
Total deposits
49,080
51,246
43,643
32,565
29,606
68,365
69,577
32,006
891,016
1,267,104
Obligations related to securities sold short
1
2,677
575
1,304
1,647
1,245
6,351
14,346
12,879
2,771
43,795
Obligations related to securities sold under repurchase
 
agreements
2
196,625
20,970
3,017
237
114
164
23
–
–
221,150
Securitization liabilities at amortized cost
–
719
182
367
567
1,602
5,104
6,300
–
14,841
Amounts payable to brokers, dealers, and clients
27,434
–
–
–
–
–
–
–
–
27,434
Insurance-related liabilities
215
405
607
608
641
1,137
1,508
1,288
869
7,278
Other liabilities
5,198
6,600
2,535
1,628
922
2,380
2,024
5,944
7,009
34,240
Subordinated notes and debentures
 
–
–
–
–
–
–
–
10,733
–
10,733
Equity
–
–
–
–
–
–
–
–
127,827
127,827
Total liabilities and equity
$
344,261
$
145,339
$
123,676
$
74,615
$
60,352
$
97,247
$
129,352
$
89,928
$
1,029,788
$
2,094,558
Off-balance sheet commitments
Credit and liquidity commitments
6,7
$
16,424
$
45,279
$
31,734
$
23,774
$
23,268
$
49,354
$
174,265
$
3,658
$
1,990
$
369,746
Other commitments
8
131
233
271
325
246
931
2,864
376
12
5,389
Unconsolidated structured entity commitments
1,312
1,004
1,855
3,143
1,787
7,012
2,930
–
–
19,043
Total off-balance sheet commitments
$
17,867
$
46,516
$
33,860
$
27,242
$
25,301
$
57,297
$
180,059
$
4,034
$
2,002
$
394,178
Amount has been recorded according to the remaining contractual maturity of the underlying security.
 
2
 
Certain contracts considered short-term are presented in ‘less than 1 month’ category.
3
 
Certain non-financial assets have been recorded as having ‘no specific maturity’.
4
 
As the timing of demand deposits and notice deposits is non-specific and callable by the depositor,
 
obligations have been included as having ‘no specific maturity’.
5
 
Includes $
70
 
billion of covered bonds with remaining contractual maturities of $
10
 
billion in ‘over 3 months to 6 months’, $
4
 
billion in ‘over 6 months to 9 months’, $
5
 
billion in ‘over 9
months to 1 year’ $
24
 
billion in ‘over 1 to 2 years’, $
19
 
billion in ‘over 2 to 5 years’, and $
8
 
billion in ‘over 5 years’.
6
 
Includes $
623
 
million in commitments to extend credit to private equity investments.
7
 
Commitments to extend credit exclude personal lines of credit and credit card lines, which are unconditionally cancellable
 
at the Bank’s discretion at any time.
8
 
Includes various purchase commitments as well as commitments for leases not yet commenced, and lease-related
 
payments.
TABLE 58: REMAINING CONTRACTUAL
 
MATURITY
(continued)
(millions of Canadian dollars)
As at
October 31, 2024
No
Less than
1 to 3
3 to 6
6 to 9
9 months
Over 1 to
Over 2 to
Over
specific
1 month
months
months
months
to 1 year
2 years
5 years
5 years
maturity
Total
Assets
Cash and due from banks
$
6,437
$
–
$
–
$
–
$
–
$
–
$
–
$
–
$
–
$
6,437
Interest-bearing deposits with banks
165,665
23
–
–
–
–
–
–
4,242
169,930
Trading loans, securities, and other
1
3,773
4,852
6,777
4,852
4,729
11,756
28,458
27,484
83,089
175,770
Non-trading financial assets at fair value through
profit or loss
–
2
301
1,431
96
702
810
694
1,833
5,869
Derivatives
11,235
12,059
5,501
4,257
2,587
10,485
17,773
14,164
–
78,061
Financial assets designated at fair value through
profit or loss
367
251
486
613
292
1,144
1,865
1,399
–
6,417
Financial assets at fair value through other comprehensive
 
income
357
7,284
6,250
6,459
9,367
5,766
19,729
34,270
4,415
93,897
Debt securities at amortized cost, net of allowance
for credit losses
1,620
4,237
4,763
6,367
4,072
30,513
93,429
126,617
(3)
271,615
Securities purchased under reverse repurchase
 
agreements
2
134,310
35,360
19,897
10,119
5,299
1,722
482
–
1,028
208,217
Loans
Residential mortgages
 
7,502
11,817
13,066
16,074
4,353
86,112
132,381
60,344
–
331,649
Consumer instalment and other personal
974
1,758
2,509
4,077
6,137
28,498
88,052
35,096
61,281
228,382
Credit card
–
–
–
–
–
–
–
–
40,639
40,639
Business and government
 
55,591
15,405
10,866
19,340
18,982
47,488
98,362
61,904
29,035
356,973
Total loans
64,067
28,980
26,441
39,491
29,472
162,098
318,795
157,344
130,955
957,643
Allowance for loan losses
–
–
–
–
–
–
–
–
(8,094)
(8,094)
Loans, net of allowance for loan losses
64,067
28,980
26,441
39,491
29,472
162,098
318,795
157,344
122,861
949,549
Investment in Schwab
–
–
–
–
–
–
–
–
9,024
9,024
Goodwill
3
–
–
–
–
–
–
–
–
18,851
18,851
Other intangibles
3
–
–
–
–
–
–
–
–
3,044
3,044
Land, buildings, equipment, other depreciable
assets, and right-of-use assets
3
–
8
1
4
12
81
562
3,130
6,039
9,837
Deferred tax assets
–
–
–
–
–
–
–
–
4,937
4,937
Amounts receivable from brokers, dealers, and clients
22,115
–
–
–
–
–
–
–
–
22,115
Other assets
6,556
2,478
2,989
556
367
373
312
153
14,397
28,181
Total assets
$
416,502
$
95,534
$
73,406
$
74,149
$
56,293
$
224,640
$
482,215
$
365,255
$
273,757
$
2,061,751
Liabilities
Trading deposits
$
4,522
$
2,516
$
2,768
$
2,101
$
3,715
$
5,488
$
7,566
$
1,736
$
–
$
30,412
Derivatives
9,923
11,556
5,740
3,319
2,783
8,800
12,877
13,370
–
68,368
Securitization liabilities at fair value
–
1,004
328
644
97
3,313
9,443
5,490
–
20,319
Financial liabilities designated at
 
fair value through profit or loss
 
50,711
25,295
51,967
40,280
37,964
1,477
–
–
220
207,914
Deposits
4,5
Personal
14,229
31,997
30,780
16,971
19,064
15,120
15,590
7
497,909
641,667
Banks
14,714
4,287
2,434
16,343
6,954
–
3
–
12,963
57,698
Business and government
23,536
24,136
11,295
19,038
9,020
37,681
76,667
24,144
343,798
569,315
Total deposits
52,479
60,420
44,509
52,352
35,038
52,801
92,260
24,151
854,670
1,268,680
Obligations related to securities sold short
1
1,431
2,392
750
971
603
8,303
10,989
12,610
1,466
39,515
Obligations related to securities sold under repurchase
 
agreements
2
173,741
21,172
2,096
1,036
30
1,225
23
–
2,577
201,900
Securitization liabilities at amortized cost
119
589
819
438
144
1,843
4,823
3,590
–
12,365
Amounts payable to brokers, dealers, and clients
26,598
–
–
–
–
–
–
–
–
26,598
Insurance-related liabilities
224
448
671
671
705
1,184
1,656
727
883
7,169
Other liabilities
12,396
14,478
7,279
1,114
876
1,886
1,421
5,608
6,820
51,878
Subordinated notes and debentures
 
–
–
–
200
–
–
–
11,273
–
11,473
Equity
–
–
–
–
–
–
–
–
115,160
115,160
Total liabilities and equity
$
332,144
$
139,870
$
116,927
$
103,126
$
81,955
$
86,320
$
141,058
$
78,555
$
981,796
$
2,061,751
Off-balance sheet commitments
Credit and liquidity commitments
6,7
$
31,198
$
28,024
$
26,127
$
24,731
$
21,440
$
52,706
$
174,388
$
4,743
$
1,948
$
365,305
Other commitments
8
113
266
270
400
254
1,019
1,591
403
50
4,366
Unconsolidated structured entity commitments
–
–
–
125
766
490
19
–
–
1,400
Total off-balance sheet commitments
$
31,311
$
28,290
$
26,397
$
25,256
$
22,460
$
54,215
$
175,998
$
5,146
$
1,998
$
371,071
Amount has been recorded according to the remaining contractual maturity of the underlying security.
 
2
 
Certain contracts considered short-term are presented in ‘less than 1 month’ category.
3
 
Certain non-financial assets have been recorded as having ‘no specific maturity’.
4
 
As the timing of demand deposits and notice deposits is non-specific and callable by the depositor,
 
obligations have been included as having ‘no specific maturity’.
5
 
Includes $
75
 
billion of covered bonds with remaining contractual maturities of $
2
 
billion in ‘over 3 months to 6 months’, $
10
 
billion in ‘over 6 months to 9 months’, $
18
 
billion in ‘over 1 to
2 years’, $
37
 
billion in ‘over 2 to 5 years’, and $
8
 
billion in ‘over 5 years’.
6
 
Includes $
609
 
million in commitments to extend credit to private equity investments.
7
 
Commitments to extend credit exclude personal lines of credit and credit card lines, which are unconditionally cancellable
 
at the Bank’s discretion at any time.
8
 
Includes various purchase commitments as well as commitments for leases not yet commenced, and lease-related
 
payments.