Loans, impaired loans and allowance for credit losses (Tables)

9 Months Ended

Jul. 31, 2021

Text Block [Abstract]

Disclosure of loans at amortized cost

(a) Loans at amortized cost

							As at
							July 31, 2021
($ millions)							Gross carrying amount		Allowance for credit losses		Net carrying amount
Residential mortgages							$	310,370	$	838	$	309,532
Personal loans								91,544		2,550		88,994
Credit cards								12,194		1,306		10,888
Business and government								219,720		1,385		218,335
Total							$	633,828	$	6,079	$	627,749
	As at
	April 30, 2021						October 31, 2020
($ millions)	Gross carrying amount		Allowance for credit losses		Net carrying amount		Gross carrying amount		Allowance for credit losses		Net carrying amount
Residential mortgages	$	296,727	$	841	$	295,886	$	284,684	$	884	$	283,800
Personal loans		90,682		2,806		87,876		93,758		3,155		90,603
Credit cards		12,826		1,545		11,281		14,797		1,886		12,911
Business and government		214,646		1,524		213,122		217,663		1,714		215,949
Total	$	614,881	$	6,716	$	608,165	$	610,902	$	7,639	$	603,263

Schedule of Impaired Loans

(b) Impaired loans(1)(2)

	As at
	July 31, 2021
($ millions)	Gross impaired loans		Allowance for credit losses		Net carrying amount
Residential mortgages	$	1,432	$	403	$	1,029
Personal loans		946		715		231
Credit cards		–		–		–
Business and government		2,357		641		1,716
Total	$	4,735	$	1,759	$	2,976
By geography:
Canada	$	1,089	$	472	$	617
United States		17		1		16
Mexico		771		293		478
Peru		790		358		432
Chile		611		195		416
Colombia		448		98		350
Other international		1,009		342		667
Total	$	4,735	$	1,759	$	2,976

	As at
	April 30, 2021						October 31, 2020
($ millions)	Gross impaired loans		Allowance for credit losses		Net carrying amount		Gross impaired loans		Allowance for credit losses		Net carrying amount
Residential mortgages	$	1,495	$	410	$	1,085	$	1,490	$	392	$	1,098
Personal loans		1,182		821		361		1,032		820		212
Credit cards		–		–		–		–		–		–
Business and government		2,439		707		1,732		2,531		745		1,786
Total	$	5,116	$	1,938	$	3,178	$	5,053	$	1,957	$	3,096
By geography:
Canada	$	1,219	$	518	$	701	$	1,127	$	487	$	640
United States		49		2		47		116		4		112
Mexico		716		309		407		570		222		348
Peru		872		380		492		824		498		326
Chile		709		243		466		775		233		542
Colombia		521		135		386		459		102		357
Other international		1,030		351		679		1,182		411		771
Total	$	5,116	$	1,938	$	3,178	$	5,053	$	1,957	$	3,096

(1) Interest income recognized on impaired loans during the three months ended July 31, 2021 was $13 (April 30, 2021 – $12; October 31, 2020 – $11).

(2) Additional interest income of approximately $61 would have been recorded if the above loans had not been classified as impaired (April 30, 2021 – $73; October 31, 2020 – $71).

Summary of Key Macroeconomic Variables Used for Allowance for Credit Losses Calculations

The following table shows certain key macroeconomic variables used to estimate the allowance for credit losses. For the base case, optimistic and pessimistic scenarios, the projections are provided for the next 12 months and for the remaining forecast period, which represents a medium-term view.

	Base Case Scenario				Alternative Scenario - Optimistic				Alternative Scenario - Pessimistic				Alternative Scenario - Pessimistic Front Loaded
As at July 31, 2021	Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period
Canada
Real GDP growth, y/y % change		5.3		1.6		7.1		2.5		1.2		2.6		-5.7		3.9
Unemployment rate, average %		6.5		6.0		5.8		4.3		9.0		6.5		11.9		8.4
Bank of Canada overnight rate target, average %		0.3		2.1		0.9		3.6		0.3		1.2		0.3		0.5
HPI - Housing Price Index, y/y % change		11.5		2.2		13.5		3.9		4.3		3.4		-2.1		4.0
USDCAD exchange rate, average		1.19		1.21		1.18		1.20		1.23		1.21		1.25		1.23
US
Real GDP growth, y/y % change		6.7		1.6		8.5		2.3		3.6		2.4		-0.5		3.5
Unemployment rate, average %		4.7		4.1		4.3		3.7		6.5		4.7		7.8		6.1
Mexico
Real GDP growth, y/y % change		3.7		1.7		5.6		3.1		1.2		2.4		-3.3		3.6
Unemployment rate, average %		4.0		4.0		3.5		3.0		6.5		4.6		9.4		6.5
Chile
Real GDP growth, y/y % change		6.6		2.6		8.9		3.7		3.4		3.5		-0.5		4.5
Unemployment rate, average %		9.4		6.6		8.8		5.9		11.9		7.2		14.8		9.1
Peru
Real GDP growth, y/y % change		6.2		3.2		9.0		4.6		5.6		3.7		3.3		4.4
Unemployment rate, average %		11.0		7.3		9.3		4.0		12.6		7.9		15.0		9.9
Colombia
Real GDP growth, y/y % change		5.0		3.5		6.9		4.9		4.3		4.0		2.0		4.8
Unemployment rate, average %		14.0		8.6		12.8		5.9		15.5		9.2		18.0		11.2
Caribbean
Real GDP growth, y/y % change		5.2		4.1		6.6		5.5		4.6		4.5		2.2		5.4
Global
WTI oil price, average USD/bbl		65		67		71		90		58		65		52		55
Copper price, average USD/lb		4.17		4.09		4.35		4.77		3.91		4.00		3.78		3.67
Global GDP, y/y % change		5.56		2.89		7.33		3.90		3.33		3.50		-0.13		4.42

	Base Case Scenario				Alternative Scenario - Optimistic				Alternative Scenario - Pessimistic				Alternative Scenario - Pessimistic Front Loaded
As at April 30, 2021	Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period
Canada
Real GDP growth, y/y % change		7.8		1.6		9.9		2.3		2.8		2.8		-3.5		3.9
Unemployment rate, average %		6.7		6.0		6.1		4.8		9.3		6.6		12.2		8.5
Bank of Canada overnight rate target, average %		0.3		1.7		0.9		2.9		0.3		0.7		0.3		0.5
HPI - Housing Price Index, y/y % change		7.5		2.0		9.2		4.2		0.4		2.9		-5.9		4.0
USDCAD exchange rate, average		1.24		1.23		1.23		1.22		1.28		1.24		1.30		1.26
US
Real GDP growth, y/y % change		8.2		1.6		10.3		2.1		4.8		2.5		0.9		3.5
Unemployment rate, average %		5.0		3.8		4.5		3.4		6.7		4.4		8.0		5.9
Mexico
Real GDP growth, y/y % change		7.0		1.9		8.7		2.7		3.5		2.8		-0.3		3.8
Unemployment rate, average %		3.8		3.8		3.4		2.9		6.3		4.4		9.2		6.3
Chile
Real GDP growth, y/y % change		6.5		5.1		8.4		6.8		3.1		6.0		-0.8		7.1
Unemployment rate, average %		9.5		6.7		9.0		5.7		12.0		7.2		14.9		9.2
Peru
Real GDP growth, y/y % change		7.5		3.6		10.2		5.1		5.8		4.2		3.7		4.9
Unemployment rate, average %		11.3		7.3		10.1		4.4		13.2		7.9		15.4		9.9
Colombia
Real GDP growth, y/y % change		4.7		3.6		6.7		4.9		3.0		4.2		0.9		4.9
Unemployment rate, average %		12.8		8.6		11.9		6.3		14.7		9.2		16.9		11.2
Caribbean
Real GDP growth, y/y % change		3.8		4.1		5.4		4.9		2.1		5.2		-0.3		6.2
Global
WTI oil price, average USD/bbl		62		66		70		90		54		62		50		57
Copper price, average USD/lb		4.03		3.90		4.23		4.55		3.69		3.77		3.49		3.50
Global GDP, y/y % change		6.73		3.00		8.65		4.00		4.29		3.65		1.45		4.40

As at October 31, 2020	Base Case Scenario				Alternative Scenario - Optimistic				Alternative Scenario - Pessimistic				Alternative Scenario - Pessimistic Front Loaded
	Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period		Next 12 Months		Remaining Forecast Period
Canada
Real GDP growth, y/y % change		3.1		2.2		4.7		2.7		-2.0		3.8		-10.8		6.4
Unemployment rate, average %		7.3		5.5		6.7		4.7		9.9		5.8		14.1		7.1
Bank of Canada overnight rate target, average %		0.3		0.8		0.5		1.2		0.3		0.4		0.3		0.3
HPI - Housing Price Index, y/y % change		0.4		2.8		1.9		3.3		-6.3		4.6		-15.2		6.8
USDCAD exchange rate, average		1.30		1.25		1.30		1.25		1.37		1.27		1.40		1.33
US
Real GDP growth, y/y % change		2.5		2.2		3.6		2.4		-0.5		3.1		-7.4		5.2
Unemployment rate, average %		6.3		3.5		6.1		3.3		8.1		4.1		10.5		7.0
Mexico
Real GDP growth, y/y % change		1.0		2.3		2.5		2.6		-1.8		3.1		-8.7		5.3
Unemployment rate, average %		7.3		4.5		6.8		3.9		9.9		4.9		14.1		6.2
Chile
Real GDP growth, y/y % change		3.8		2.6		5.6		3.2		0.8		3.4		-6.2		5.6
Unemployment rate, average %		12.1		7.3		11.6		6.9		14.7		7.7		18.9		8.9
Peru
Real GDP growth, y/y % change		3.7		3.8		5.0		4.4		2.9		4.4		-3.5		6.3
Unemployment rate, average %		12.4		8.1		11.3		6.3		14.2		8.5		18.5		9.7
Colombia
Real GDP growth, y/y % change		1.9		3.5		3.0		4.0		1.1		4.0		-5.2		6.0
Unemployment rate, average %		14.4		8.2		13.6		6.8		16.2		8.7		20.5		9.8
Caribbean
Real GDP growth, y/y % change		2.2		4.1		3.3		4.4		1.0		4.7		-6.6		5.9
Global
WTI oil price, average USD/bbl		48		58		52		68		42		54		37		38
Copper price, average USD/lb		3.00		3.19		3.09		3.42		2.79		3.06		2.66		2.64
Global GDP, y/y % change		4.44		3.28		5.63		3.72		2.36		3.91		-2.67		5.34

Schedule of Allowance for Credit Losses

(iv) Allowance for credit losses

Allowance for credit losses
($ millions)	Balance as at November 1, 2020		Provision for credit losses		Net write-offs			Other, including foreign currency adjustment			Balance as at July 31, 2021
Residential mortgages	$	884	$	74	$	(61	)	$	(59	)	$	838
Personal loans		3,155		810		(1,256	)		(159	)		2,550
Credit cards		1,886		672		(1,164	)		(88	)		1,306
Business and government		1,892		84		(317	)		(125	)		1,534
	$	7,817	$	1,640	$	(2,798	)	$	(431	)	$	6,228
Presented as:
Allowance for credit losses on loans	$	7,639									$	6,079
Allowance for credit losses on acceptances(1)		77										62
Allowance for credit losses on off-balance sheet exposures(2)		101										87

(1) Allowance for credit losses on acceptances are recorded against the financial asset in the Consolidated Statement of Financial Position.

(2) Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position.

($ millions)	Balance as at November 1, 2019		Provision for credit losses		Net write-offs			Other, including foreign currency adjustment			Balance as at July 31, 2020
Residential mortgages	$	680	$	329	$	(57	)	$	(130	)	$	822
Personal loans		2,065		2,122		(1,098	)		(129	)		2,960
Credit cards		1,255		1,444		(812	)		(42	)		1,845
Business and government		1,139		1,058		(342	)		(83	)		1,772
	$	5,139	$	4,953	$	(2,309	)	$	(384	)	$	7,399
Presented as:
Allowance for credit losses on loans	$	5,077									$	7,221
Allowance for credit losses on acceptances(1)		6										88
Allowance for credit losses on off-balance sheet exposures(2)		56										90

(1) Allowance for credit losses on acceptances are recorded against the financial asset in the Consolidated Statement of Financial Position.

(2) Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position.

Allowance for credit losses on loans	As at July 31, 2021
($ millions)	Stage 1		Stage 2		Stage 3		Total
Residential mortgages	$	153	$	282	$	403	$	838
Personal loans		659		1,176		715		2,550
Credit cards		334		972		–		1,306
Business and government		265		479		641		1,385
Total(1)	$	1,411	$	2,909	$	1,759	$	6,079

(1) Excludes allowance for credit losses for other financial assets including acceptances, investment securities, deposits with banks, off-balance sheet credit risks and reverse repos amounted to $153.

	As at October 31, 2020
($ millions)	Stage 1		Stage 2		Stage 3		Total
Residential mortgages	$	190	$	302	$	392	$	884
Personal loans		864		1,471		820		3,155
Credit cards		501		1,385		–		1,886
Business and government		409		560		745		1,714
Total(1)	$	1,964	$	3,718	$	1,957	$	7,639

(1) Excludes allowance for credit losses for other financial assets including acceptances, investment securities, deposits with banks and off-balance sheet credit risks amounted to $181.

	As at July 31, 2020
($ millions)	Stage 1		Stage 2		Stage 3		Total
Residential mortgages	$	191	$	307	$	324	$	822
Personal loans		843		1,383		734		2,960
Credit cards		502		1,343		–		1,845
Business and government		350		526		718		1,594
Total(1)	$	1,886	$	3,559	$	1,776	$	7,221

(1) Excludes allowance for credit losses for other financial assets including acceptances, investment securities, deposits with banks and off-balance sheet credit risks amounted to $182.

The following table presents the changes to the allowance for credit losses on loans.

	As at and for the three months ended																								As at and for the nine months ended
	July 31, 2021												April 30, 2021												July 31, 2021
($ millions)	Stage 1			Stage 2			Stage 3			Total			Stage 1			Stage 2			Stage 3			Total			Stage 1			Stage 2			Stage 3			Total
Residential mortgages
Balance at beginning of period	$	151		$	280		$	410		$	841		$	161		$	297		$	406		$	864		$	190		$	302		$	392		$	884
Provision for credit losses
Remeasurement(1)		(29	)		15			27			13			(30	)		7			48			25			(124	)		51			134			61
Newly originated or purchased financial assets		18			–			–			18			10			–			–			10			39			–			–			39
Derecognition of financial assets and maturities		(2	)		(6	)		–			(8	)		(2	)		(7	)		–			(9	)		(7	)		(19	)		–			(26	)
Changes in models and methodologies		–			–			–			–			–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		17			(14	)		(3	)		–			19			(15	)		(4	)		–			68			(56	)		(12	)		–
Stage 2		(3	)		13			(10	)		–			(3	)		17			(14	)		–			(9	)		50			(41	)		–
Stage 3		–			(6	)		6			–			–			(11	)		11			–			–			(29	)		29			–
Gross write-offs		–			–			(23	)		(23	)		–			–			(22	)		(22	)		–			–			(82	)		(82	)
Recoveries		–			–			11			11			–			–			6			6			–			–			21			21
Foreign exchange and other movements		1			–			(15	)		(14	)		(4	)		(8	)		(21	)		(33	)		(4	)		(17	)		(38	)		(59	)
Balance at end of period(2)	$	153		$	282		$	403		$	838		$	151		$	280		$	410		$	841		$	153		$	282		$	403		$	838
Personal loans
Balance at beginning of period	$	699		$	1,286		$	821		$	2,806		$	787		$	1,514		$	849		$	3,150		$	864		$	1,471		$	820		$	3,155
Provision for credit losses
Remeasurement(1)		(265	)		231			230			196			(264	)		176			327			239			(951	)		943			809			801
Newly originated or purchased financial assets		185			–			–			185			154			–			–			154			438			–			–			438
Derecognition of financial assets and maturities		(55	)		(127	)		–			(182	)		(67	)		(82	)		–			(149	)		(150	)		(279	)		–			(429	)
Changes in models and methodologies		–			–			–			–			–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		148			(145	)		(3	)		–			204			(200	)		(4	)		–			753			(743	)		(10	)		–
Stage 2		(41	)		58			(17	)		–			(85	)		104			(19	)		–			(218	)		273			(55	)		–
Stage 3		(3	)		(111	)		114			–			(8	)		(184	)		192			–			(42	)		(421	)		463			–
Gross write-offs		–			–			(508	)		(508	)		–			–			(547	)		(547	)		–			–			(1,461	)		(1,461	)
Recoveries		–			–			78			78			–			–			64			64			–			–			205			205
Foreign exchange and other movements		(9	)		(16	)		–			(25	)		(22	)		(42	)		(41	)		(105	)		(35	)		(68	)		(56	)		(159	)
Balance at end of period(2)	$	659		$	1,176		$	715		$	2,550		$	699		$	1,286		$	821		$	2,806		$	659		$	1,176		$	715		$	2,550
Credit cards
Balance at beginning of period	$	319		$	1,226		$	–		$	1,545		$	448		$	1,467		$	–		$	1,915		$	501		$	1,385		$	–		$	1,886
Provision for credit losses
Remeasurement(1)		(88	)		(78	)		350			184			(177	)		119			323			265			(398	)		299			824			725
Newly originated or purchased financial assets		27			–			–			27			19			–			–			19			75			–			–			75
Derecognition of financial assets and maturities		(16	)		(27	)		–			(43	)		(17	)		(24	)		–			(41	)		(48	)		(80	)		–			(128	)
Changes in models and methodologies		–			–			–			–			–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		109			(109	)		–			–			91			(91	)		–			–			313			(313	)		–			–
Stage 2		(16	)		16			–			–			(32	)		32			–			–			(91	)		91			–			–
Stage 3		–			(56	)		56			–			–			(228	)		228			–			–			(354	)		354			–
Gross write-offs		–			–			(462	)		(462	)		–			–			(587	)		(587	)		–			–			(1,309	)		(1,309	)
Recoveries		–			–			59			59			–			–			42			42			–			–			145			145
Foreign exchange and other movements		(1	)		–			(3	)		(4	)		(13	)		(49	)		(6	)		(68	)		(18	)		(56	)		(14	)		(88	)
Balance at end of period(2)	$	334		$	972		$	–		$	1,306		$	319		$	1,226		$	–		$	1,545		$	334		$	972		$	–		$	1,306
Business and government
Balance at beginning of period	$	353		$	564		$	707		$	1,624		$	459		$	600		$	739		$	1,798		$	478		$	592		$	745		$	1,815
Provision for credit losses
Remeasurement(1)		(67	)		(8	)		96			21			(79	)		–			103			24			(156	)		13			305			162
Newly originated or purchased financial assets		71			–			–			71			79			–			–			79			239			–			–			239
Derecognition of financial assets and
maturities		(66	)		(20	)		(6	)		(92	)		(85	)		(12	)		(1	)		(98	)		(234	)		(45	)		(9	)		(288	)
Changes in models and methodologies		–			–			–			–			(4	)		(11	)		–			(15	)		(4	)		(11	)		–			(15	)
Transfer to (from):
Stage 1		22			(22	)		–			–			10			(10	)		–			–			50			(50	)		–			–
Stage 2		(4	)		4			–			–			(18	)		19			(1	)		–			(46	)		47			(1	)		–
Stage 3		–			(1	)		1			–			–			(3	)		3			–			–			(5	)		5			–
Gross write-offs		–			–			(151	)		(151	)		–			–			(105	)		(105	)		–			–			(343	)		(343	)
Recoveries		–			–			13			13			–			–			8			8			–			–			26			26
Foreign exchange and other movements		2			3			(19	)		(14	)		(9	)		(19	)		(39	)		(67	)		(16	)		(21	)		(87	)		(124	)
Balance at end of period including off-balance sheet exposures(2)	$	311		$	520		$	641		$	1,472		$	353		$	564		$	707		$	1,624		$	311		$	520		$	641		$	1,472
Less: Allowance for credit losses on off-balance sheet exposures(3)		(46	)		(41	)		–			(87	)		(50	)		(50	)		–			(100	)		(46	)		(41	)		–			(87	)
Balance at end of period(2)	$	265		$	479		$	641		$	1,385		$	303		$	514		$	707		$	1,524		$	265		$	479		$	641		$	1,385

(1) Includes credit risk changes as a result of significant increases in credit risk, changes in credit risk that did not result in a transfer between stages, changes in model inputs and assumptions and changes due to drawdowns of undrawn commitments.

(2) Interest income on impaired loans for residential mortgages, personal and credit cards, and business and government loans totaled $61 (April 30, 2021 – $73).

(3) Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position.

Summary of Carrying Value of Exposures by Risk Rating

(d) Carrying value of exposures by risk rating

Residential mortgages	As at July 31, 2021								As at October 31, 2020
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Very low	$	179,340	$	5,527	$	–	$	184,867	$	167,233	$	1,892	$	–	$	169,125
Low		64,790		1,858		–		66,648		61,988		1,495		–		63,483
Medium		10,946		5,174		–		16,120		10,914		2,071		–		12,985
High		977		2,298		–		3,275		1,197		3,435		–		4,632
Very high		14		635		–		649		13		596		–		609
Loans not graded(2)		33,424		3,955		–		37,379		28,787		3,573		–		32,360
Default		–		–		1,432		1,432		–		–		1,490		1,490
Total	$	289,491	$	19,447	$	1,432	$	310,370	$	270,132	$	13,062	$	1,490	$	284,684
Allowance for credit losses		153		282		403		838		190		302		392		884
Carrying value	$	289,338	$	19,165	$	1,029	$	309,532	$	269,942	$	12,760	$	1,098	$	283,800

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category.

Personal loans	As at July 31, 2021								As at October 31, 2020
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Very low	$	30,301	$	305	$	–	$	30,606	$	29,557	$	499	$	–	$	30,056
Low		25,049		839		–		25,888		25,508		1,793		–		27,301
Medium		8,017		1,208		–		9,225		6,619		2,779		–		9,398
High		5,375		2,559		–		7,934		5,809		2,964		–		8,773
Very high		84		916		–		1,000		318		1,367		–		1,685
Loans not graded(2)		14,399		1,546		–		15,945		13,629		1,884		–		15,513
Default		–		–		946		946		–		–		1,032		1,032
Total	$	83,225	$	7,373	$	946	$	91,544	$	81,440	$	11,286	$	1,032	$	93,758
Allowance for credit losses		659		1,176		715		2,550		864		1,471		820		3,155
Carrying value	$	82,566	$	6,197	$	231	$	88,994	$	80,576	$	9,815	$	212	$	90,603

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category.

Credit cards	As at July 31, 2021								As at October 31, 2020
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3		Total		Stage 1		Stage 2		Stage 3		Total
Very low	$	1,392	$	84	$	–	$	1,476	$	1,318	$	20	$	–	$	1,338
Low		2,208		153		–		2,361		1,971		184		–		2,155
Medium		2,546		191		–		2,737		2,416		393		–		2,809
High		1,783		1,310		–		3,093		2,229		1,799		–		4,028
Very high		19		445		–		464		41		843		–		884
Loans not graded(1)		1,250		813		–		2,063		2,414		1,169		–		3,583
Default		–		–		–		–		–		–		–		–
Total	$	9,198	$	2,996	$	–	$	12,194	$	10,389	$	4,408	$	–	$	14,797
Allowance for credit losses		334		972		–		1,306		501		1,385		–		1,886
Carrying value	$	8,864	$	2,024	$	–	$	10,888	$	9,888	$	3,023	$	–	$	12,911

(1) Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category.

Undrawn loan commitments – Retail	As at July 31, 2021								As at October 31, 2020
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3		Total		Stage 1		Stage 2		Stage 3		Total
Very low	$	85,879	$	16	$	–	$	85,895	$	85,242	$	6	$	–	$	85,248
Low		18,027		12		–		18,039		16,775		39		–		16,814
Medium		6,708		23		–		6,731		5,739		123		–		5,862
High		2,773		780		–		3,553		2,201		705		–		2,906
Very high		19		191		–		210		3		134		–		137
Loans not graded(1)		8,775		2,637		–		11,412		11,113		4,501		–		15,614
Default		–		–		–		–		–		–		–		–
Carrying value	$	122,181	$	3,659	$	–	$	125,840	$	121,073	$	5,508	$	–	$	126,581

(1) Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category.

Business and government loans	As at July 31, 2021								As at October 31, 2020
Grade ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Investment grade	$	108,831	$	1,146	$	–	$	109,977	$	105,757	$	1,290	$	–	$	107,047
Non-investment grade		93,548		8,087		–		101,635		93,998		8,840		–		102,838
Watch list		31		3,601		–		3,632		47		3,101		–		3,148
Loans not graded(2)		2,112		7		–		2,119		2,063		36		–		2,099
Default		–		–		2,357		2,357		–		–		2,531		2,531
Total	$	204,522	$	12,841	$	2,357	$	219,720	$	201,865	$	13,267	$	2,531	$	217,663
Allowance for credit losses		265		479		641		1,385		409		560		745		1,714
Carrying value	$	204,257	$	12,362	$	1,716	$	218,335	$	201,456	$	12,707	$	1,786	$	215,949

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category.

Undrawn loan commitments – Business and government	As at July 31, 2021								As at October 31, 2020
Grade ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Investment grade	$	185,780	$	1,599	$	–	$	187,379	$	182,580	$	1,280	$	–	$	183,860
Non-investment grade		65,032		3,660		–		68,692		59,600		4,336		–		63,936
Watch list		11		2,058		–		2,069		6		1,704		–		1,710
Loans not graded(2)		3,920		–		–		3,920		3,702		309		–		4,011
Default		–		–		106		106		–		–		161		161
Total	$	254,743	$	7,317	$	106	$	262,166	$	245,888	$	7,629	$	161	$	253,678
Allowance for credit losses		46		41		–		87		69		32		–		101
Carrying value	$	254,697	$	7,276	$	106	$	262,079	$	245,819	$	7,597	$	161	$	253,577

(1) Stage 3 includes purchased or originated credit-impaired loans.

(2) Portfolios where the customer account level ‘Probability of Default’ has not been determined have been included in the ‘Loans not graded’ category.

Schedule of Loans Past Due But Not Impaired

(e) Loans past due but not impaired(1)

A loan is considered past due when a counterparty has not made a payment by the contractual due date. The following table presents the carrying value of loans that are contractually past due but not classified as impaired because they are either less than 90 days past due or fully secured and collection efforts are reasonably expected to result in repayment, or restoring it to a current status in accordance with the Bank’s policy. In cases where borrowers have opted to participate in payment deferral programs as a result of COVID-19, deferral of payments is not considered past due and such loans are not aged further during the deferral period.

	As at July 31, 2021(2)
($ millions)	31-60 days		61-90 days		91 days and greater(3)		Total
Residential mortgages	$	721	$	327	$	–	$	1,048
Personal loans		406		212		–		618
Credit cards		149		93		258		500
Business and government		126		33		–		159
Total	$	1,402	$	665	$	258	$	2,325
	As at April 30, 2021(2)
($ millions)	31-60 days		61-90 days		91 days and greater(3)		Total
Residential mortgages	$	759	$	366	$	–	$	1,125
Personal loans		439		264		–		703
Credit cards		181		141		470		792
Business and government		80		70		–		150
Total	$	1,459	$	841	$	470	$	2,770
	As at October 31, 2020(2)
($ millions)	31-60 days		61-90 days		91 days and greater(3)		Total
Residential mortgages	$	663	$	282	$	–	$	945
Personal loans		604		273		–		877
Credit cards		401		166		277		844
Business and government		288		103		–		391
Total	$	1,956	$	824	$	277	$	3,057

(1) Loans past due 30 days or less are not presented in this analysis as they are not administratively considered past due.

(2) For loans where payment deferrals were granted, deferred payments are not considered past due and such loans are not aged further during the deferral period. Regular ageing of the loans resumes, after the end of the deferral period.

(3) All loans that are over 90 days past due are considered impaired with the exception of credit card receivables which are considered impaired when 180 days past due.

Summary of Purchased Credit Impaired Loans

(f) Purchased credit-impaired loans

Certain financial assets including loans are credit-impaired on initial recognition. The following table provides details of such assets:

	As at
($ millions)	July 31 2021			April 30 2021			October 31 2020
Unpaid principal balance(1)	$	316		$	361		$	393
Credit related fair value adjustments		(70	)		(84	)		(93	)
Carrying value		246			277			300
Stage 3 allowance		(1	)		(13	)		(10	)
Carrying value net related allowance	$	245		$	264		$	290

(1) Represents principal amount owed net of write-offs.