Investments in associates

6 Months Ended

Apr. 30, 2022

Investments accounted for using equity method [abstract]

Investments in associates

9. Investments in associates

The Bank had significant investments in the following associates:

										As at
										April 30 2022		January 31 2022		October 31 2021
($ millions)	Country of incorporation		Nature of business		Ownership percentage			Date of financial statements(1)		Carrying value		Carrying value		Carrying value
Canadian Tire Financial Services business (CTFS)(2)		Canada		Financial Services		20.00	%		March 31, 2022	$	546	$	558	$	549
Bank of Xi’an Co. Ltd.(3)		China		Banking		18.11	%		March 31, 2022		1,033		1,034		968
Maduro & Curiel’s Bank N.V.(4)		Curacao		Banking		48.10	%		March 31, 2022		402		388		366

(1) Represents the date of the most recent financial statements made available to the Bank by the associates’ management.

(2) Canadian Tire has an option to sell to the Bank up to an additional 29% equity interest until the end of the 10th anniversary (October 1, 2024) at the then fair value, that can be settled, at the Bank’s discretion, by issuance of common shares or cash. After October 1, 2024 for a period of six months, the Bank has the option to sell its equity interest back to Canadian Tire at the then fair value.

(3) Based on the quoted price on the Shanghai Stock Exchange, the Bank’s Investment in Bank of Xi’an Co. Ltd. was $579 (January 31, 2022 – $675; October 31, 2021 – $671). The ownership percentage for Bank of Xi’an Co. was 18.11% as at January 31, 2022 and 17.99% as at October 31, 2021.

(4) The local regulator requires financial institutions to set aside reserves for general banking risks. These reserves are not required under IFRS, and represent undistributed retained earnings related to a foreign associated corporation, which are subject to local regulatory restrictions. As of April 30, 2022, these reserves amounted to $62 (January 31, 2022 – $62; October 31, 2021 - $60).