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Loans, Impaired Loans and Allowance for Credit Losses (Tables)
 12 Months Ended
Oct. 31, 2021
Text Block [Abstract]  
Disclosure of loans at amortized cost
(a)
Loans at amortized cost
 
   
2021
    
2020
  
As at October 31 ($ millions)  
Gross loans
    
Allowance
for credit
losses
    
Net carrying
amount
    
Gross loans
    
Allowance
for credit
losses
    
Net carrying
amount
  
Residential mortgages
  
$
319,678
 
  
$
802
 
  
$
318,876
 
   $ 284,684     $ 884     $ 283,800  
Personal loans
  
 
91,540
 
  
 
2,341
 
  
 
89,199
 
     93,758       3,155       90,603  
Credit cards
  
 
12,450
 
  
 
1,211
 
  
 
11,239
 
     14,797       1,886       12,911  
Business and government
  
 
218,944
 
  
 
1,272
 
  
 
217,672
 
     217,663       1,714       215,949  
Total
  
$
  642,612
 
  
$
  5,626
 
  
$
  636,986
 
   $   610,902     $   7,639     $   603,263  
Schedule of Loans and Acceptances Outstanding by Geography
(b)
Loans and acceptances outstanding by geography
(1)
 
As at October 31 ($ millions)  
2021
    
2020
  
Canada:
                
Residential mortgages
  
$
  280,169
 
   $   245,044  
Personal loans
  
 
73,592
 
     73,919  
Credit cards
  
 
6,213
 
     6,399  
Business and government
  
 
77,353
 
     74,590  
   
 
437,327
 
     399,952  
United States:
                
Personal loans
  
 
1,137
 
     823  
Business and government
  
 
42,295
 
     43,126  
   
 
43,432
 
     43,949  
Mexico:
                
Residential mortgages
  
 
9,826
 
     9,160  
Personal loans
  
 
2,454
 
     3,038  
Credit cards
  
 
540
 
     659  
Business and government
  
 
18,902
 
     18,356  
   
 
31,722
 
     31,213  
Chile:
                
Residential mortgages
  
 
17,176
 
     17,231  
Personal loans
  
 
4,680
 
     5,187  
Credit cards
  
 
2,299
 
     2,307  
Business and government
  
 
20,806
 
     22,135  
   
 
44,961
 
     46,860  
Peru:
                
Residential mortgages
  
 
2,894
 
     2,935  
Personal loans
  
 
4,536
 
     4,773  
Credit cards
  
 
467
 
     1,823  
Business and government
  
 
11,511
 
     12,587  
   
 
19,408
 
     22,118  
Colombia:
                
Residential mortgages
  
 
2,222
 
     2,114  
Personal loans
  
 
1,967
 
     2,201  
Credit cards
  
 
1,608
 
     1,923  
Business and government
  
 
6,205
 
     4,654  
   
 
12,002
 
     10,892  
Other International:
                
Residential mortgages
  
 
7,391
 
     8,200  
Personal loans
  
 
3,174
 
     3,817  
Credit cards
  
 
1,323
 
     1,686  
Business and government
  
 
41,872
 
     42,215  
   
 
53,760
 
     55,918  
Total loans
  
 
642,612
 
     610,902  
Acceptances
(2)
  
 
20,404
 
     14,228  
Total loans and acceptances
(3)
  
 
663,016
 
     625,130  
Allowance for credit losses
  
 
(5,663
) 
     (7,716 ) 
Total loans and acceptances net of allowance for credit losses
  
$
657,353
 
   $ 617,414  
 
(1)
Geographic segmentation is based on the location of the property for residential mortgages; otherwise, the residence of the borrower.
(2)
1.2% of borrowers reside outside Canada.
(3)
Loans and acceptances denominated in US dollars were $112,919 (2020 – $114,788), in Chilean pesos $36,126 (2020 – $36,812), Mexican pesos $23,363 (2020 – $23,654), and in other foreign currencies $46,403 (2020 – $49,652).
Schedule of Loans Maturities
(c)
Loan maturities
 
As at October 31, 2021  
Remaining term to maturity
    
Rate sensitivity
  
($ millions)  
Within
one year
    
One to
five years
    
Five to
ten years
    
Over
ten years
    
No specific
maturity
    
Total
    
Floating
    
Fixed rate
    
Non-rate
sensitive
    
Total
  
Residential mortgages
  
$
38,886
 
  
$
247,343
 
  
$
12,112
 
  
$
19,417
 
  
$
1,920
 
  
$
319,678
 
  
$
83,578
 
  
$
233,217
 
  
$
2,883
 
  
$
319,678
 
Personal loans
  
 
15,057
 
  
 
33,414
 
  
 
5,047
 
  
 
1,180
 
  
 
36,842
 
  
 
91,540
 
  
 
37,254
 
  
 
53,374
 
  
 
912
 
  
 
91,540
 
Credit cards
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
12,450
 
  
 
12,450
 
  
 
–
 
  
 
12,450
 
  
 
–
 
  
 
12,450
 
Business and government
  
 
108,405
 
  
 
100,319
 
  
 
4,973
 
  
 
230
 
  
 
5,017
 
  
 
218,944
 
  
 
120,313
 
  
 
96,546
 
  
 
2,085
 
  
 
218,944
 
Total
  
$
162,348
 
  
$
381,076
 
  
$
22,132
 
  
$
20,827
 
  
$
56,229
 
  
$
642,612
 
  
$
241,145
 
  
$
395,587
 
  
$
5,880
 
  
$
642,612
 
Allowance for credit losses
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
  
 
(5,626
) 
  
 
(5,626
) 
  
 
–
 
  
 
–
 
  
 
(5,626
) 
  
 
(5,626
) 
Total loans net of allowance for credit losses
  
$
162,348
 
  
$
381,076
 
  
$
22,132
 
  
$
20,827
 
  
$
50,603
 
  
$
636,986
 
  
$
241,145
 
  
$
395,587
 
  
$
254
 
  
$
636,986
 
     
As at October 31, 2020  
Remaining term to maturity
    
Rate sensitivity
  
($ millions)  
Within
one year
    
One to
five years
    
Five to
ten years
    
Over
ten years
    
No specific
maturity
    
Total
    
Floating
    
Fixed rate
    
Non-rate
sensitive
    
Total
  
Residential mortgages
   $ 44,076     $ 207,998     $ 13,216     $ 16,796     $ 2,598     $ 284,684     $ 51,462     $ 230,590     $ 2,632     $ 284,684  
Personal loans
     15,307       34,190       4,406       873       38,982       93,758       42,284       49,088       2,386       93,758  
Credit cards
     –       –       –       –       14,797       14,797       –       14,797       –       14,797  
Business and government
     107,393       98,383       4,854       1,969       5,064       217,663       143,895       71,187       2,581       217,663  
Total
   $ 166,776     $ 340,571     $ 22,476     $ 19,638     $ 61,441     $ 610,902     $ 237,641     $ 365,662     $    7,599     $   610,902  
Allowance for credit losses
     –       –       –       –       (7,639 )      (7,639 )      –       –       (7,639 )      (7,639 ) 
Total loans net of allowance for credit losses
   $   166,776     $   340,571     $   22,476     $   19,638     $   53,802     $   603,263     $   237,641     $   365,662     $ (40 )    $ 603,263  
Schedule of Impaired Loans
(d)
Impaired loans
(1)(2)
 
   
2021
    
2020
  
As at October 31 ($ millions)  
Gross
impaired
loans
(1)
    
Allowance
for credit
losses
    
Net
    
Gross
impaired
loans
(1)
    
Allowance
for credit
losses
    
Net
  
Residential mortgages
  
$
1,331
 
  
$
374
 
  
$
957
 
   $ 1,490     $ 392     $ 1,098  
Personal loans
  
 
833
 
  
 
626
 
  
 
207
 
     1,032       820       212  
Credit cards
  
 
–
 
  
 
–
 
  
 
–
 
    
–
      
–
      
–
  
Business and government
  
 
2,292
 
  
 
655
 
  
 
1,637
 
     2,531       745       1,786  
Total
  
$
  4,456
 
  
$
  1,655
 
  
$
  2,801
 
   $   5,053     $   1,957     $   3,096  
By geography:
                                                
Canada
  
$
1,090
 
  
 
446
 
  
 
644
 
   $ 1,127       487       640  
United States
  
 
24
 
  
 
4
 
  
 
20
 
     116       4       112  
Mexico
  
 
758
 
  
 
269
 
  
 
489
 
     570       222       348  
Peru
  
 
699
 
  
 
350
 
  
 
349
 
     824       498       326  
Chile
  
 
512
 
  
 
180
 
  
 
332
 
     775       233       542  
Colombia
  
 
418
 
  
 
88
 
  
 
330
 
     459       102       357  
Other International
  
 
955
 
  
 
318
 
  
 
637
 
     1,182       411       771  
Total
  
$
4,456
 
  
 
1,655
 
  
 
2,801
 
   $ 5,053       1,957       3,096  
 
(1)
Interest income recognized on impaired loans during the year ended October 31, 2021 was $53 (2020 – $47).
(2)
Additional interest income of approximately $270 would have been recorded if the above loans had not been classified as impaired (2020 – $310).
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
(1)
  
October 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
  
 
3.4
 
          
 
1.9
 
          
 
5.3
 
          
 
2.8
 
          
 
-1.3
 
          
 
3.1
 
          
 
-7.4
 
          
 
4.3
 
Unemployment rate, average %
  
 
6.3
 
          
 
5.7
 
          
 
5.6
 
          
 
4.1
 
          
 
8.8
 
          
 
6.3
 
          
 
11.7
 
          
 
8.2
 
Bank of Canada overnight rate target, average %
  
 
0.3
 
          
 
2.0
 
          
 
0.9
 
          
 
3.6
 
          
 
0.3
 
          
 
1.2
 
          
 
0.3
 
          
 
0.5
 
HPI – Housing Price Index, y/y % change
  
 
11.1
 
          
 
2.1
 
          
 
13.2
 
          
 
3.9
 
          
 
3.9
 
          
 
3.3
 
          
 
-2.7
 
          
 
3.9
 
USDCAD exchange rate, average
  
 
1.24
 
          
 
1.21
 
          
 
1.23
 
          
 
1.20
 
          
 
1.28
 
          
 
1.21
 
          
 
1.30
 
          
 
1.24
 
                               
US
                                                                                                                        
Real GDP growth, y/y % change
  
 
5.7
 
          
 
1.6
 
          
 
7.3
 
          
 
2.1
 
          
 
2.4
 
          
 
2.4
 
          
 
-1.4
 
          
 
3.5
 
Unemployment rate, average %
  
 
3.8
 
          
 
3.5
 
          
 
3.4
 
          
 
3.2
 
          
 
5.6
 
          
 
4.1
 
          
 
6.8
 
          
 
5.6
 
                               
Mexico
                                                                                                                        
Real GDP growth, y/y % change
  
 
2.8
 
          
 
1.9
 
          
 
4.3
 
          
 
2.7
 
          
 
-0.4
 
          
 
2.7
 
          
 
-4.2
 
          
 
3.8
 
Unemployment rate, average %
  
 
4.0
 
          
 
4.0
 
          
 
3.6
 
          
 
3.1
 
          
 
6.5
 
          
 
4.5
 
          
 
9.4
 
          
 
6.4
 
                               
Chile
                                                                                                                        
Real GDP growth, y/y % change
  
 
6.7
 
          
 
2.2
 
          
 
8.8
 
          
 
3.1
 
          
 
3.4
 
          
 
3.1
 
          
 
-0.5
 
          
 
4.2
 
Unemployment rate, average %
  
 
6.5
 
          
 
6.2
 
          
 
5.9
 
          
 
5.6
 
          
 
9.0
 
          
 
6.7
 
          
 
12.0
 
          
 
8.6
 
                               
Peru
                                                                                                                        
Real GDP growth, y/y % change
  
 
5.0
 
          
 
3.2
 
          
 
7.7
 
          
 
4.3
 
          
 
3.6
 
          
 
3.7
 
          
 
0.0
 
          
 
4.7
 
Unemployment rate, average %
  
 
8.8
 
          
 
7.5
 
          
 
6.0
 
          
 
3.4
 
          
 
10.8
 
          
 
8.1
 
          
 
13.8
 
          
 
10.0
 
                               
Colombia
                                                                                                                        
Real GDP growth, y/y % change
  
 
5.0
 
          
 
3.5
 
          
 
6.8
 
          
 
4.8
 
          
 
3.6
 
          
 
4.0
 
          
 
0.0
 
          
 
5.0
 
Unemployment rate, average %
  
 
13.7
 
          
 
11.2
 
          
 
12.0
 
          
 
8.2
 
          
 
15.6
 
          
 
11.8
 
          
 
18.6
 
          
 
13.7
 
                               
Caribbean
                                                                                                                        
Real GDP growth, y/y % change
  
 
4.9
 
          
 
4.1
 
          
 
6.2
 
          
 
4.9
 
          
 
3.9
 
          
 
4.6
 
          
 
0.3
 
          
 
5.6
 
                               
Global
                                                                                                                        
WTI oil price, average USD/bbl
  
 
69
 
          
 
70
 
          
 
75
 
          
 
86
 
          
 
61
 
          
 
67
 
          
 
57
 
          
 
57
 
Copper price, average USD/lb
  
 
4.20
 
          
 
4.20
 
          
 
4.36
 
          
 
4.78
 
          
 
3.93
 
          
 
4.05
 
          
 
3.81
 
          
 
3.62
 
Global GDP, y/y % change
  
 
5.07
 
  
 
 
 
  
 
3.02
 
  
 
 
 
  
 
6.54
 
  
 
 
 
  
 
3.90
 
  
 
 
 
  
 
2.44
 
  
 
 
 
  
 
3.68
 
  
 
 
 
  
 
-0.69
 
  
 
 
 
  
 
4.48
 
 
(1)
Allowance for credit losses as of October 31, 2019, were determined using three probability-weighted scenarios (base case, optimistic and pessimistic). Starting Q1, 2020, the Bank added an additional pessimistic front loaded scenario to its measurement methodology.
 
   
Base Case Scenario
          
Alternative Scenario – Optimistic
          
Alternative Scenario – Pessimistic
          
Alternative Scenario –
Pessimistic Front Loaded
(1)
  
October 31, 2020  
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  
 
(1)
Allowance for credit losses as of October 31, 2019, were determined using three probability-weighted scenarios (base case, optimistic and pessimistic). Starting Q1, 2020, the Bank added an additional pessimistic front loaded scenario to its measurement methodology.
 
Schedule of Allowance for Credit Losses
(iv)
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
October 31,
2021
  
Residential mortgages
  
$
884
 
  
$
91
 
  
$
(84
) 
  
$
(89
) 
  
$
802
 
Personal loans
  
 
3,155
 
  
 
928
 
  
 
(1,559
) 
  
 
(183
) 
  
 
2,341
 
Credit cards
  
 
1,886
 
  
 
772
 
  
 
(1,340
) 
  
 
(107
) 
  
 
1,211
 
Business and government
  
 
1,892
 
  
 
17
 
  
 
(375
) 
  
 
(160
) 
  
 
1,374
 
   
$
  7,817
 
  
$
  1,808
 
  
$
  (3,358
) 
  
$
  (539
) 
  
$
  5,728
 
Presented as:
                                        
Allowance for credit losses on loans
  
$
7,639
 
                          
$
5,626
 
Allowance for credit losses on acceptances
  
 
77
 
                          
 
37
 
Allowance for credit losses on off-balance sheet
exposures
  
 
101
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
65
 
($ millions)  
Balance as at
November 1,
2019
    
Provision for
credit losses
    
Net write-offs
    
Other, including
foreign
currency
adjustment
    
Balance as at
October 31,
2020
  
Residential mortgages
   $ 680     $ 418     $ (79 )    $ (135 )    $ 884  
Personal loans
     2,065       2,632       (1,381 )      (161 )      3,155  
Credit cards
     1,255       1,672       (975 )      (66 )      1,886  
Business and government
     1,139       1,362       (506 )      (103 )      1,892  
    $   5,139     $   6,084     $   (2,941)     $   (465)     $   7,817  
Presented as:
                                        
Allowance for credit losses on loans
   $ 5,077                             $ 7,639  
Allowance for credit losses on acceptances
     6                               77  
Allowance for credit losses on off-balance sheet
exposures
     56    
 
 
 
  
 
 
 
  
 
 
 
     101  
 
Allowance
for credit losses on loans
 
As at October 31, 2021 ($ millions)  
Stage 1
    
Stage 2
    
Stage 3
    
Total
  
Residential mortgages
  
$
  152
 
  
$
  276
 
  
$
  374
 
  
$
  802
 
Personal loans
  
 
644
 
  
 
1,071
 
  
 
626
 
  
 
2,341
 
Credit cards
  
 
352
 
  
 
859
 
  
 
–
 
  
 
1,211
 
Business and government
  
 
186
 
  
 
431
 
  
 
655
 
  
 
1,272
 
Total
(1)
  
$
  1,334
 
  
$
  2,637
 
  
$
  1,655
 
  
$
  5,626
 
 
(1)
Excludes allowance for credit losses for other financial assets including acceptances, investment securities, deposits with banks and off-balance sheet credit risks which amounted to $105.
 
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 which amounted to $181.
 
The following table presents the changes to the allowance for credit losses on loans
.
 
   
As at October 31, 2021
    
As at October 31, 2020
  
($ millions)  
Stage 1
    
Stage 2
    
Stage 3
    
Total
    
Stage 1
    
Stage 2
    
Stage 3
    
Total
  
Residential mortgages
                                                                
Balance at beginning of the year
  
$
      190
 
  
$
  302
 
  
$
  392
 
  
$
  884
 
   $ 126     $ 229     $ 325     $ 680  
Provision for credit losses
                                                                
Remeasurement
(1)
  
 
(143
) 
  
 
70
 
  
 
149
 
  
 
76
 
     (20 )      150       237       367  
Newly originated or purchased financial assets
  
 
49
 
  
 
–
 
  
 
–
 
  
 
49
 
     39       –       –       39  
Derecognition of financial assets and maturities
  
 
(10
) 
  
 
(24
) 
  
 
–
 
  
 
(34
) 
     (4 )      (14 )      –       (18 ) 
Changes in models and methodologies
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
     7       6       17       30  
Transfer to (from):
                                                                
Stage 1
  
 
88
 
  
 
(74
) 
  
 
(14
) 
  
 
–
 
     111       (90 )      (21 )      –  
Stage 2
  
 
(12
) 
  
 
62
 
  
 
(50
) 
  
 
–
 
     (18 )      101       (83 )      –  
Stage 3
  
 
–
 
  
 
(32
) 
  
 
32
 
  
 
–
 
     –       (42 )      42       –  
Gross write-offs
  
 
–
 
  
 
–
 
  
 
(111
) 
  
 
(111
) 
     –       –       (97 )      (97 ) 
Recoveries
  
 
–
 
  
 
–
 
  
 
27
 
  
 
27
 
     –       –       18       18  
Foreign exchange and other movements
(6)
  
 
(10
) 
  
 
(28
) 
  
 
(51
) 
  
 
(89
) 
     (51 )      (38 )      (46 )      (135 ) 
Balance at end of year
(2)
  
$
152
 
  
$
276
 
  
$
374
 
  
$
802
 
   $ 190     $ 302     $ 392     $ 884  
Personal loans
                                                                
Balance at beginning of the year
  
$
864
 
  
$
  1,471
 
  
$
820
 
  
$
   3,155
 
   $    609     $ 865     $ 591     $ 2,065  
Provision for credit losses
                                                                
Remeasurement
(1)
  
 
(1,119
) 
  
 
1,023
 
  
 
984
 
  
 
888
 
     (559 )      1,582       1,373       2,396  
Newly originated or purchased financial assets
  
 
525
 
  
 
–
 
  
 
–
 
  
 
525
 
     424       –       –       424  
Derecognition of financial assets and maturities
  
 
(171
) 
  
 
(314
) 
  
 
–
 
  
 
(485
) 
     (92 )      (161 )      –       (253 ) 
Changes in models and methodologies
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
     16       33       16       65  
Transfer to (from):
                                                                
Stage 1
  
 
882
 
  
 
(869
) 
  
 
(13
) 
  
 
–
 
     832       (821 )      (11 )      –  
Stage 2
  
 
(253
) 
  
 
325
 
  
 
(72
) 
  
 
–
 
     (282 )      358       (76 )      –  
Stage 3
  
 
(43
) 
  
 
(487
) 
  
 
530
 
  
 
–
 
     (6 )      (343 )      349       –  
Gross write-offs  
 
–
 
  
 
–
 
  
 
(1,833
) 
  
 
(1,833
) 
     –       –       (1,611 )      (1,611 ) 
Recoveries  
 
–
 
  
 
–
 
  
 
274
 
  
 
274
 
     –       –       230       230  
Foreign exchange and other movements
(6)
  
 
(41
) 
  
 
(78
) 
  
 
(64
) 
  
 
(183
) 
     (78 )      (42 )      (41 )      (161 ) 
Balance at end of year
(2)
  
$
644
 
  
$
1,071
 
  
$
626
 
  
$
2,341
 
   $ 864     $ 1,471     $ 820     $ 3,155  
Credit cards
                                                                
Balance at beginning of the year
  
$
501
 
  
$
1,385
 
  
$
–
 
  
$
1,886
 
   $ 424     $ 831     $ –     $ 1,255  
Provision for credit losses
                                                                
Remeasurement
(1)
  
 
(452)
 
  
 
299
 
  
 
972
 
  
 
819
 
     (213 )      1,174       661       1,622  
Newly originated or purchased financial assets
  
 
117
 
  
 
–
 
  
 
–
 
  
 
117
 
     155       –       –       155  
Derecognition of financial assets and maturities
  
 
(70
) 
  
 
(94
) 
  
 
–
 
  
 
(164
) 
     (72 )      (68 )      –       (140 ) 
Changes in models and methodologies
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
     6       29       –       35  
Transfer to (from):
                                                                
Stage 1
  
 
382
 
  
 
(382
) 
  
 
–
 
  
 
–
 
     365       (365 )      –       –  
Stage 2
  
 
(103
) 
  
 
103
 
  
 
–
 
  
 
–
 
     (146 )      146       –       –  
Stage 3
  
 
–
 
  
 
(389
) 
  
 
389
 
  
 
–
 
     –       (307 )      307       –  
Gross write-offs
  
 
–
 
  
 
–
 
  
 
(1,543
) 
  
 
(1,543
) 
     –       –       (1,163 )      (1,163 ) 
Recoveries
  
 
–
 
  
 
–
 
  
 
203
 
  
 
203
 
     –       –       188       188  
Foreign exchange and other movements
(6)
  
 
(23
) 
  
 
(63
) 
  
 
(21
) 
  
 
(107
) 
     (18 )      (55 )      7       (66 ) 
Balance at end of year
(2)
  
$
352
 
  
$
859
 
  
$
–
 
  
$
1,211
 
   $ 501     $ 1,385     $ –     $ 1,886  
Business and government
                                                                
Balance at beginning of the year
  
$
478
 
  
$
592
 
  
$
745
 
  
$
1,815
 
   $ 191     $ 263     $ 679     $ 1,133  
Provision for credit losses
                                                                
Remeasurement
(1)
  
 
(262
) 
  
 
11
 
  
 
402
 
  
 
151
 
     146       467       647       1,260  
Newly originated or purchased financial assets
  
 
325
 
  
 
–
 
  
 
–
 
  
 
325
 
     315       –       –       315  
Derecognition of financial assets and maturities
  
 
(320
) 
  
 
(72
) 
  
 
(11
) 
  
 
(403
) 
     (200 )      (72 )      (16 )      (288 ) 
Changes in models and methodologies
  
 
(4
) 
  
 
(11
) 
  
 
–
 
  
 
(15
) 
     11       2       –       13  
Transfer to (from):
                                                                
Stage 1
  
 
66
 
  
 
(66
) 
  
 
–
 
  
 
–
 
     48       (48 )      –       –  
Stage 2
  
 
(53
) 
  
 
54
 
  
 
(1
) 
  
 
–
 
     (28 )      31       (3 )      –  
Stage 3
  
 
–
 
  
 
(9
) 
  
 
9
 
  
 
–
 
     (2 )      (27 )      29       –  
Gross write-offs
  
 
–
 
  
 
–
 
  
 
(414
) 
  
 
(414
) 
     –       –       (534 )      (534 ) 
Recoveries
  
 
–
 
  
 
–
 
  
 
39
 
  
 
39
 
     –       –       28       28  
Foreign exchange and other movements
  
 
(18
) 
  
 
(29
) 
  
 
(114
) 
  
 
(161
) 
     (3 )      (24 )      (85 )      (112 ) 
Balance at end of period including off-balance sheet exposures
(2)
  
$
212
 
  
$
470
 
  
$
655
 
  
$
1,337
 
   $ 478     $ 592     $ 745     $ 1,815  
Less: Allowance for credits losses on off-balance sheet exposures
(2)(3)
  
 
26
 
  
 
39
 
  
 
–
 
  
 
65
 
     69       32       –       101  
Balance at end of year
(2)
  
$
186
 
  
$
431
 
  
$
655
 
  
$
1,272
 
   $ 409     $ 560     $ 745     $ 1,714  
 
(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 loans, credit cards, and business and government loans totaled $270 (2020 – $310).
(3)
Allowance for credit losses on off-balance sheet exposures is recorded in other liabilities in the Consolidated Statement of Financial Position
.
(4)
Allowance for credit losses on acceptances are recorded against the financial asset in the Consolidated Statement of Financial Position.
(5)
During the year ended October 31, 2021, the contractual terms of certain financial assets were modified where the modification did not result in derecognition. The carrying value of such loans that were modified in Stage 2 and Stage 3 was $1,505 and $854 respectively, before the modification.
(6)
Divestitures are included in the foreign exchange and other movements.
 
Summary of Carrying Value of Exposures by Risk Rating
 
Residential mortgages
  
As at October 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
  
$
187,163
 
  
$
5,610
 
  
$
–
 
  
$
192,773
 
   $ 167,233     $ 1,892     $ –     $ 169,125  
Low
  
 
69,306
 
  
 
1,768
 
  
 
–
 
  
 
71,074
 
     61,988       1,495       –       63,483  
Medium
  
 
9,170
 
  
 
3,690
 
  
 
–
 
  
 
12,860
 
     10,914       2,071       –       12,985  
High
  
 
904
 
  
 
2,284
 
  
 
–
 
  
 
3,188
 
     1,197       3,435       –       4,632  
Very high
  
 
16
 
  
 
643
 
  
 
–
 
  
 
659
 
     13       596       –       609  
Loans not graded
(2)
  
 
34,122
 
  
 
3,671
 
  
 
–
 
  
 
37,793
 
     28,787       3,573       –       32,360  
Default
  
 
–
 
  
 
–
 
  
 
1,331
 
  
 
1,331
 
     –       –       1,490       1,490  
Total
  
 
300,681
 
  
 
17,666
 
  
 
1,331
 
  
 
319,678
 
     270,132       13,062       1,490       284,684  
Allowance for credit losses
  
 
152
 
  
 
276
 
  
 
374
 
  
 
802
 
     190       302       392       884  
Carrying value
  
$
  300,529
 
  
$
  17,390
 
  
$
  957
 
  
$
  318,876
 
   $   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 October 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
  
$
30,085
 
  
$
168
 
  
$
–
 
  
$
30,253
 
   $ 29,557     $ 499     $ –     $ 30,056  
Low
  
 
25,719
 
  
 
574
 
  
 
–
 
  
 
26,293
 
     25,508       1,793       –       27,301  
Medium
  
 
8,290
 
  
 
1,127
 
  
 
–
 
  
 
9,417
 
     6,619       2,779       –       9,398  
High
  
 
5,686
 
  
 
2,307
 
  
 
–
 
  
 
7,993
 
     5,809       2,964       –       8,773  
Very high
  
 
82
 
  
 
1,157
 
  
 
–
 
  
 
1,239
 
     318       1,367       –       1,685  
Loans not graded
(2)
  
 
14,159
 
  
 
1,353
 
  
 
–
 
  
 
15,512
 
     13,629       1,884       –       15,513  
Default
  
 
–
 
  
 
–
 
  
 
833
 
  
 
833
 
     –       –       1,032       1,032  
Total
  
 
84,021
 
  
 
6,686
 
  
 
833
 
  
 
91,540
 
     81,440       11,286       1,032       93,758  
Allowance for credit losses
  
 
644
 
  
 
1,071
 
  
 
626
 
  
 
2,341
 
     864       1,471       820       3,155  
Carrying value
  
$
  83,377
 
  
$
  5,615
 
  
$
  207
 
  
$
  89,199
 
   $   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 October 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
  
$
1,517
 
  
$
76
 
  
$
–
 
  
$
1,593
 
   $ 1,318     $ 20     $ –     $ 1,338  
Low
  
 
2,288
 
  
 
135
 
  
 
–
 
  
 
2,423
 
     1,971       184       –       2,155  
Medium
  
 
2,666
 
  
 
166
 
  
 
–
 
  
 
2,832
 
     2,416       393       –       2,809  
High
  
 
2,237
 
  
 
1,225
 
  
 
–
 
  
 
3,462
 
     2,229       1,799       –       4,028  
Very high
  
 
21
 
  
 
509
 
  
 
–
 
  
 
530
 
     41       843       –       884  
Loans not graded
(1)
  
 
1,158
 
  
 
452
 
  
 
–
 
  
 
1,610
 
     2,414       1,169       –       3,583  
Default
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
     –       –       –       –  
Total
  
 
9,887
 
  
 
2,563
 
  
 
–
 
  
 
12,450
 
     10,389       4,408       –       14,797  
Allowance for credit losses
  
 
352
 
  
 
859
 
  
 
–
 
  
 
1,211
 
     501       1,385       –       1,886  
Carrying value
  
$
  9,535
 
  
$
  1,704
 
  
$
 
–
 
  
$
  11,239
 
   $   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 October 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
  
$
88,308
 
  
$
14
 
  
$
–
 
  
$
88,322
 
   $ 85,242     $ 6     $ –     $ 85,248  
Low
  
 
17,880
 
  
 
12
 
  
 
–
 
  
 
17,892
 
     16,775       39       –       16,814  
Medium
  
 
6,858
 
  
 
36
 
  
 
–
 
  
 
6,894
 
     5,739       123       –       5,862  
High
  
 
3,103
 
  
 
745
 
  
 
–
 
  
 
3,848
 
     2,201       705       –       2,906  
Very high
  
 
24
 
  
 
212
 
  
 
–
 
  
 
236
 
     3       134       –       137  
Loans not graded
(1)
  
 
9,126
 
  
 
2,204
 
  
 
–
 
  
 
11,330
 
     11,113       4,501       –       15,614  
Default
  
 
–
 
  
 
–
 
  
 
–
 
  
 
–
 
     –       –       –       –  
Carrying value
  
$
  125,299
 
  
$
  3,223
 
  
$
  
–
 
  
$
  128,522
 
   $   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.
Total retail loans
  
As at October 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
  
$
307,073
 
  
$
5,868
 
  
$
–
 
  
$
312,941
 
   $ 283,350     $ 2,417     $ –     $ 285,767  
Low
  
 
115,193
 
  
 
2,489
 
  
 
–
 
  
 
117,682
 
     106,242       3,511       –       109,753  
Medium
  
 
26,984
 
  
 
5,019
 
  
 
–
 
  
 
32,003
 
     25,688       5,366       –       31,054  
High
  
 
11,930
 
  
 
6,561
 
  
 
–
 
  
 
18,491
 
     11,436       8,903       –       20,339  
Very high
  
 
143
 
  
 
2,521
 
  
 
–
 
  
 
2,664
 
     375       2,940       –       3,315  
Loans not graded
(2)
  
 
58,565
 
  
 
7,680
 
  
 
–
 
  
 
66,245
 
     55,943       11,127       –       67,070  
Default
  
 
–
 
  
 
–
 
  
 
2,164
 
  
 
2,164
 
     –       –       2,522       2,522  
Total
  
 
519,888
 
  
 
30,138
 
  
 
2,164
 
  
 
552,190
 
     483,034       34,264       2,522       519,820  
Allowance for credit losses
  
 
1,148
 
  
 
2,206
 
  
 
1,000
 
  
 
4,354
 
     1,555       3,158       1,212       5,925  
Carrying value
  
$
  518,740
 
  
$
  27,932
 
  
$
  1,164
 
  
$
  547,836
 
   $   481,479     $   31,106     $   1,310     $   513,895  
 
(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.
 
Business and government
loans
  
As at October 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
  
Investment grade
  
$
110,786
 
  
$
892
 
  
$
–
 
  
$
111,678
 
   $ 105,757     $ 1,290     $ –     $ 107,047  
Non-Investment grade
  
 
91,945
 
  
 
7,570
 
  
 
–
 
  
 
99,515
 
     93,998       8,840       –       102,838  
Watch list
  
 
31
 
  
 
3,266
 
  
 
–
 
  
 
3,297
 
     47       3,101       –       3,148  
Loans not graded
(2)
  
 
2,151
 
  
 
11
 
  
 
–
 
  
 
2,162
 
     2,063       36       –       2,099  
Default
  
 
–
 
  
 
–
 
  
 
2,292
 
  
 
2,292
 
     –       –       2,531       2,531  
Total
  
 
204,913
 
  
 
11,739
 
  
 
2,292
 
  
 
218,944
 
     201,865       13,267       2,531       217,663  
Allowance for credit losses
  
 
186
 
  
 
431
 
  
 
655
 
  
 
1,272
 
     409       560       745       1,714  
Carrying value
  
$
  204,727
 
  
$
  11,308
 
  
$
  1,637
 
  
$
  217,672
 
   $   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 October 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
  
Investment grade
  
$
186,056
 
  
$
1,266
 
  
$
–
 
  
$
187,322
 
   $ 182,580     $ 1,280     $ –     $ 183,860  
Non-investment grade
  
 
66,009
 
  
 
3,786
 
  
 
–
 
  
 
69,795
 
     59,600       4,336       –       63,936  
Watch list
  
 
12
 
  
 
2,160
 
  
 
–
 
  
 
2,172
 
     6       1,704       –       1,710  
Loans not graded
(2)
  
 
4,155
 
  
 
–
 
  
 
–
 
  
 
4,155
 
     3,702       309       –       4,011  
Default
  
 
–
 
  
 
–
 
  
 
102
 
  
 
102
 
     –       –       161       161  
Total
  
 
256,232
 
  
 
7,212
 
  
 
102
 
  
 
263,546
 
     245,888       7,629       161       253,678  
Allowance for credit losses
  
 
26
 
  
 
39
 
  
 
–
 
  
 
65
 
     69       32       –       101  
Carrying value
  
$
  256,206
 
  
$
  7,173
 
  
$
  102
 
  
$
  263,481
 
   $   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.
 
Total non-retail loans
  
As at October 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
  
Investment grade
  
$
296,842
 
  
$
2,158
 
  
$
–
 
  
$
299,000
 
   $ 288,337     $ 2,570     $ –     $ 290,907  
Non-investment grade
  
 
157,954
 
  
 
11,356
 
  
 
–
 
  
 
169,310
 
     153,598       13,176       –       166,774  
Watch list
  
 
43
 
  
 
5,426
 
  
 
–
 
  
 
5,469
 
     53       4,805       –       4,858  
Loans not graded
(2)
  
 
6,306
 
  
 
11
 
  
 
–
 
  
 
6,317
 
     5,765       345       –       6,110  
Default
  
 
–
 
  
 
–
 
  
 
2,394
 
  
 
2,394
 
     –       –       2,692       2,692  
Total
  
 
461,145
 
  
 
18,951
 
  
 
2,394
 
  
 
482,490
 
     447,753       20,896       2,692       471,341  
Allowance for credit losses
  
 
212
 
  
 
470
 
  
 
655
 
  
 
1,337
 
     478       592       745       1,815  
Carrying value
  
$
  460,933
 
  
$
  18,481
 
  
$
  1,739
 
  
$
  481,153
 
   $   447,275     $   20,304     $   1,947     $   469,526  
(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 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.
 
   
2021
(2)
    
2020
(2)
  
As at October 31 ($ millions)  
31 –  60
days
    
61 –  90
days
    
91 days
and
greater
(3)
    
Total
    
31 –  60
days
    
61 –  90
days
    
91 days
and
greater
(3)
    
Total
  
Residential mortgages
  
$
732
 
  
$
327
 
  
$
–
 
  
$
1,059
 
   $ 663     $ 282     $ –     $ 945  
Personal loans
  
 
411
 
  
 
210
 
  
 
–
 
  
 
621
 
     604       273       –       877  
Credit cards
  
 
125
 
  
 
83
 
  
 
201
 
  
 
409
 
     401       166       277       844  
Business and government
  
 
124
 
  
 
24
 
  
 
–
 
  
 
148
 
     288       103       –       391  
Total
  
$
  1,392
 
  
$
  644
 
  
$
  201
 
  
$
  2,237
 
   $   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
Certain financial assets including loans are credit-impaired on initial recognition either through acquisition or origination. The following table provides details of such assets:
 
As at October 31 ($ millions)  
2021
    
2020
  
Unpaid principal balance
(1)
  
$
  303
 
   $ 393  
Credit related fair value adjustments
  
 
(68
) 
     (93 ) 
Carrying value
  
 
235
 
     300  
Stage 3 allowance
  
 
(1
) 
     (10 ) 
Carrying value net of related allowance
  
$
  234
 
   $   290  
 
(1)
Represents principal amount owed net of write-offs.