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

9 Months Ended

Jul. 31, 2022

Text Block [Abstract]

Disclosure of loans at amortized cost

(a) Loans at amortized cost

	As at
	July 31, 2022
($ millions)	Gross carrying amount		Allowance for credit losses		Net carrying amount
Residential mortgages	$	343,965	$	843	$	343,122
Personal loans		96,561		2,113		94,448
Credit cards		13,871		1,049		12,822
Business and government		264,128		1,142		262,986
Total	$	718,525	$	5,147	$	713,378

	As at
	April 30, 2022						October 31, 2021
($ millions)	Gross carrying amount		Allowance for credit losses		Net carrying amount		Gross carrying amount		Allowance for credit losses		Net carrying amount
Residential mortgages	$	337,714	$	834	$	336,880	$	319,678	$	802	$	318,876
Personal loans		94,437		2,171		92,266		91,540		2,341		89,199
Credit cards		13,622		1,107		12,515		12,450		1,211		11,239
Business and government		249,223		1,182		248,041		218,944		1,272		217,672
Total	$	694,996	$	5,294	$	689,702	$	642,612	$	5,626	$	636,986

Schedule of Impaired Loans

(b) Impaired loans(1)(2)

	As at
	July 31, 2022
($ millions)	Gross impaired loans		Allowance for credit losses		Net carrying amount
Residential mortgages	$	1,281	$	375	$	906
Personal loans		778		559		219
Credit cards		–		–		–
Business and government		2,193		623		1,570
Total	$	4,252	$	1,557	$	2,695
By geography:
Canada	$	893	$	425	$	468
United States		–		–		–
Mexico		817		255		562
Peru		724		343		381
Chile		606		187		419
Colombia		336		75		261
Other international		876		272		604
Total	$	4,252	$	1,557	$	2,695

	As at
	April 30, 2022						October 31, 2021
($ millions)	Gross impaired loans		Allowance for credit losses		Net carrying amount		Gross impaired loans		Allowance for credit losses		Net carrying amount
Residential mortgages	$	1,273	$	393	$	880	$	1,331	$	374	$	957
Personal loans		767		566		201		833		626		207
Credit cards		–		–		–		–		–		–
Business and government		2,224		645		1,579		2,292		655		1,637
Total	$	4,264	$	1,604	$	2,660	$	4,456	$	1,655	$	2,801
By geography:
Canada	$	968	$	412	$	556	$	1,090	$	446	$	644
United States		–		–		–		24		4		20
Mexico		795		289		506		758		269		489
Peru		676		353		323		699		350		349
Chile		543		189		354		512		180		332
Colombia		377		78		299		418		88		330
Other international		905		283		622		955		318		637
Total	$	4,264	$	1,604	$	2,660	$	4,456	$	1,655	$	2,801

(1) Interest income recognized on impaired loans during the three months ended July 31, 2022 was $9 (April 30, 2022 – $11; October 31, 2021 – $12).

(2) Additional interest income of approximately $69 would have been recorded if the above loans had not been classified as impaired (April 30, 2022 - $63; October 31, 2021 – $58).

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

The following tables show certain key macroeconomic variables used to calculate the modelled estimate for the allowance for credit losses. Further deterioration in these variables up to the date of the financial statements is incorporated through expert credit judgment. 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 - Very Pessimistic
As at July 31, 2022	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		3.2		1.9		5.0		2.7		-2.8		3.5		-3.9		2.4
Consumer price index, y/y %		5.5		1.9		5.9		2.6		9.7		2.5		11.8		9.3
Unemployment rate, average %		5.1		6.0		4.3		4.7		9.1		6.8		9.6		8.6
Bank of Canada overnight rate target, average %		2.9		2.5		3.3		3.4		4.2		3.0		4.2		3.5
HPI - Housing Price Index, y/y % change		1.2		-3.2		6.4		-2.2		-4.2		-3.3		-6.3		-4.3
USD/CAD exchange rate, average		1.21		1.25		1.20		1.24		1.21		1.25		1.22		1.26
U.S.
Real GDP growth, y/y % change		2.4		2.0		3.3		2.7		-3.4		3.5		-4.7		3.0
Consumer price index, y/y %		6.5		2.5		6.8		3.0		10.4		3.0		12.7		10.1
Target federal funds rate, upper limit, average %		2.9		2.3		3.8		3.1		4.2		2.9		4.2		3.4
Unemployment rate, average %		3.9		4.9		3.7		4.6		7.5		5.7		7.9		6.7
Mexico
Real GDP growth, y/y % change		1.9		2.1		2.4		2.9		-3.5		3.5		-4.6		2.1
Unemployment rate, average %		4.0		3.8		3.9		3.1		7.4		4.7		7.7		6.3
Chile
Real GDP growth, y/y % change		0.0		1.4		1.6		2.3		-5.4		2.9		-6.4		1.9
Unemployment rate, average %		8.3		7.5		7.8		6.8		11.9		8.1		12.6		8.9
Peru
Real GDP growth, y/y % change		2.5		2.2		4.0		3.2		-0.8		3.3		-2.4		2.4
Unemployment rate, average %		7.9		7.0		6.9		4.9		10.8		8.0		11.5		9.6
Colombia
Real GDP growth, y/y % change		4.6		2.4		6.8		3.3		1.3		3.5		-0.3		2.7
Unemployment rate, average %		10.8		10.2		9.5		7.7		13.7		11.2		14.4		12.8
Caribbean
Real GDP growth, y/y % change		4.7		4.0		5.2		4.8		1.6		5.1		0.1		3.8
Global
WTI oil price, average USD/bbl		106		81		111		100		133		85		142		121
Copper price, average USD/lb		4.06		4.11		4.23		4.60		4.46		4.16		4.58		4.41
Global GDP, y/y % change		3.40		2.55		4.66		3.49		-1.67		3.96		-2.76		3.51
	Base Case Scenario				Alternative Scenario - Optimistic				Alternative Scenario - Pessimistic				Alternative Scenario - Very Pessimistic
As at April 30, 2022	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		4.6		2.0		6.6		2.9		-0.8		3.8		-2.2		2.7
Consumer price index, y/y %		5.6		2.0		6.1		3.1		8.1		2.4		9.5		7.3
Unemployment rate, average %		5.0		6.1		4.2		4.5		9.1		6.9		9.6		8.5
Bank of Canada overnight rate target, average %		2.2		2.4		2.8		3.4		3.5		3.0		3.5		3.4
HPI - Housing Price Index, y/y % change		16.6		-0.7		19.5		0.9		11.4		0.5		9.8		-0.5
USD/CAD exchange rate, average		1.21		1.23		1.20		1.22		1.21		1.22		1.21		1.22
U.S.
Real GDP growth, y/y % change		3.9		1.9		5.3		2.6		-1.9		3.6		-3.5		2.9
Consumer price index, y/y %		7.1		2.6		7.5		3.2		9.9		3.1		11.5		8.6
Target federal funds rate, upper limit, average %		1.9		2.4		2.5		3.3		3.2		2.9		3.2		3.4
Unemployment rate, average %		3.8		4.2		3.5		3.8		7.4		4.8		7.8		6.2
Mexico
Real GDP growth, y/y % change		1.7		1.8		2.9		2.5		-3.7		3.2		-4.7		1.8
Unemployment rate, average %		4.0		3.9		3.6		3.0		7.4		4.9		7.7		6.5
Chile
Real GDP growth, y/y % change		1.8		2.1		3.6		3.5		-3.2		3.6		-4.1		2.9
Unemployment rate, average %		6.2		5.9		5.7		5.2		9.9		6.4		10.7		7.0
Peru
Real GDP growth, y/y % change		2.6		3.0		4.5		4.7		-1.2		4.1		-2.7		1.1
Unemployment rate, average %		7.8		7.0		6.9		4.2		10.5		8.0		11.7		12.0
Colombia
Real GDP growth, y/y % change		4.3		3.5		5.8		5.1		0.5		4.7		-0.2		2.9
Unemployment rate, average %		10.8		10.3		10.1		7.9		13.3		11.2		13.6		13.6
Caribbean
Real GDP growth, y/y % change		4.6		4.0		5.7		4.8		0.8		5.2		-0.6		3.9
Global
WTI oil price, average USD/bbl		96		77		102		95		129		81		140		117
Copper price, average USD/lb		4.18		4.20		4.33		4.75		4.63		4.23		4.77		4.57
Global GDP, y/y % change		3.91		2.72		5.27		3.61		-1.35		4.27		-2.78		3.76

	Base Case Scenario				Alternative Scenario - Optimistic				Alternative Scenario - Pessimistic				Alternative Scenario - Very Pessimistic
As at 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
Consumer price index, y/y %		3.0		2.4		3.4		3.5		2.0		1.8		1.6		1.2
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
USD/CAD exchange rate, average		1.24		1.21		1.23		1.20		1.28		1.21		1.30		1.24
U.S.
Real GDP growth, y/y % change		5.7		1.6		7.3		2.1		2.4		2.4		-1.4		3.5
Consumer price index, y/y %		4.0		2.5		4.5		3.1		3.3		2.3		2.6		1.9
Target federal funds rate, upper limit, average %		0.3		1.8		0.8		2.8		0.3		1.1		0.3		0.9
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

Schedule of Allowance for Credit Losses

(iv) Allowance for credit losses

Allowance for credit losses
($ millions)	Balance as at November 1, 2021		Provision for credit losses		Net write-offs			Other, including foreign currency adjustment			Balance as at July 31, 2022
Residential mortgages	$	802	$	64	$	(33	)	$	10		$	843
Personal loans		2,341		403		(643	)		12			2,113
Credit cards		1,211		288		(439	)		(11	)		1,049
Business and government		1,374		98		(149	)		(45	)		1,278
	$	5,728	$	853	$	(1,264	)	$	(34	)	$	5,283
Presented as:
Allowance for credit losses on loans	$	5,626									$	5,147
Allowance for credit losses on acceptances(1)		37										27
Allowance for credit losses on off-balance sheet exposures(2)		65										109

(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, 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.

Allowance for credit losses on loans	As at July 31, 2022
($ millions)	Stage 1		Stage 2		Stage 3		Total
Residential mortgages	$	184	$	284	$	375	$	843
Personal loans		658		896		559		2,113
Credit cards		432		617		–		1,049
Business and government		238		281		623		1,142
Total(1)	$	1,512	$	2,078	$	1,557	$	5,147

(1) Excludes allowance for credit losses of $148 for other financial assets including acceptances, investment securities, deposits with banks, off-balance sheet credit risks and reverse repos.

	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 of $105 for other financial assets including acceptances, investment securities, deposits with banks and off-balance sheet credit risks.

	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 of $153 for other financial assets including acceptances, investment securities, deposits with banks and off-balance sheet credit risks.

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

	As at and for the three months ended
	July 31, 2022												July 31, 2021
($ millions)	Stage 1			Stage 2			Stage 3			Total			Stage 1			Stage 2			Stage 3			Total
Retail loans:
Residential mortgages
Balance at beginning of period	$	168		$	273		$	393		$	834		$	151		$	280		$	410		$	841
Provision for credit losses
Remeasurement(1)		1			20			7			28			(29	)		15			27			13
Newly originated or purchased financial assets		8			–			–			8			18			–			–			18
Derecognition of financial assets and maturities		(1	)		(3	)		–			(4	)		(2	)		(6	)		–			(8	)
Changes in models and methodologies		–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		13			(10	)		(3	)		–			17			(14	)		(3	)		–
Stage 2		(2	)		13			(11	)		–			(3	)		13			(10	)		–
Stage 3		–			(5	)		5			–			–			(6	)		6			–
Gross write-offs		–			–			(17	)		(17	)		–			–			(23	)		(23	)
Recoveries		–			–			7			7			–			–			11			11
Foreign exchange and other movements		(3	)		(4	)		(6	)		(13	)		1			–			(15	)		(14	)
Balance at end of period(2)	$	184		$	284		$	375		$	843		$	153		$	282		$	403		$	838
Personal loans
Balance at beginning of period	$	655		$	950		$	566		$	2,171		$	699		$	1,286		$	821		$	2,806
Provision for credit losses
Remeasurement(1)		(129	)		107			151			129			(265	)		231			230			196
Newly originated or purchased financial assets		92			–			–			92			185			–			–			185
Derecognition of financial assets and maturities		(21	)		(32	)		–			(53	)		(55	)		(127	)		–			(182	)
Changes in models and methodologies		–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		108			(106	)		(2	)		–			148			(145	)		(3	)		–
Stage 2		(32	)		48			(16	)		–			(41	)		58			(17	)		–
Stage 3		(1	)		(58	)		59			–			(3	)		(111	)		114			–
Gross write-offs		–			–			(251	)		(251	)		–			–			(508	)		(508	)
Recoveries		–			–			59			59			–			–			78			78
Foreign exchange and other movements		(14	)		(13	)		(7	)		(34	)		(9	)		(16	)		–			(25	)
Balance at end of period(2)	$	658		$	896		$	559		$	2,113		$	659		$	1,176		$	715		$	2,550
Credit cards
Balance at beginning of period	$	419		$	688		$	–		$	1,107		$	319		$	1,226		$	–		$	1,545
Provision for credit losses
Remeasurement(1)		(33	)		34			112			113			(88	)		(78	)		350			184
Newly originated or purchased financial assets		43			–			–			43			27			–			–			27
Derecognition of financial assets and maturities		(15	)		(12	)		–			(27	)		(16	)		(27	)		–			(43	)
Changes in models and methodologies		–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		50			(50	)		–			–			109			(109	)		–			–
Stage 2		(22	)		22			–			–			(16	)		16			–			–
Stage 3		–			(43	)		43			–			–			(56	)		56			–
Gross write-offs		–			–			(202	)		(202	)		–			–			(462	)		(462	)
Recoveries		–			–			40			40			–			–			59			59
Foreign exchange and other movements		(10	)		(22	)		7			(25	)		(1	)		–			(3	)		(4	)
Balance at end of period(2)	$	432		$	617		$	–		$	1,049		$	334		$	972		$	–		$	1,306
Total retail loans
Balance at beginning of period	$	1,242		$	1,911		$	959		$	4,112		$	1,169		$	2,792		$	1,231		$	5,192
Provision for credit losses
Remeasurement(1)		(161	)		161			270			270			(382	)		168			607			393
Newly originated or purchased financial assets		143			–			–			143			230			–			–			230
Derecognition of financial assets and maturities		(37	)		(47	)		–			(84	)		(73	)		(160	)		–			(233	)
Changes in models and methodologies		–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		171			(166	)		(5	)		–			274			(268	)		(6	)		–
Stage 2		(56	)		83			(27	)		–			(60	)		87			(27	)		–
Stage 3		(1	)		(106	)		107			–			(3	)		(173	)		176			–
Gross write-offs		–			–			(470	)		(470	)		–			–			(993	)		(993	)
Recoveries		–			–			106			106			–			–			148			148
Foreign exchange and other movements		(27	)		(39	)		(6	)		(72	)		(9	)		(16	)		(18	)		(43	)
Balance at end of period(2)	$	1,274		$	1,797		$	934		$	4,005		$	1,146		$	2,430		$	1,118		$	4,694
Non-retail loans:
Business and government
Balance at beginning of period	$	234		$	352		$	645		$	1,231		$	353		$	564		$	707		$	1,624
Provision for credit losses
Remeasurement(1)		(1	)		(51	)		48			(4	)		(67	)		(8	)		96			21
Newly originated or purchased financial assets		74			–			–			74			71			–			–			71
Derecognition of financial assets and maturities		(58	)		(17	)		(6	)		(81	)		(66	)		(20	)		(6	)		(92	)
Changes in models and methodologies		31			55			–			86			–			–			–			–
Transfer to (from):
Stage 1		24			(24	)		–			–			22			(22	)		–			–
Stage 2		(6	)		6			–			–			(4	)		4			–			–
Stage 3		–			(2	)		2			–			–			(1	)		1			–
Gross write-offs		–			–			(107	)		(107	)		–			–			(151	)		(151	)
Recoveries		–			–			86			86			–			–			13			13
Foreign exchange and other movements		(1	)		(6	)		(27	)		(34	)		2			3			(19	)		(14	)
Balance at end of period including off-balance sheet exposures(2)	$	297		$	313		$	641		$	1,251		$	311		$	520		$	641		$	1,472
Less: Allowance for credit losses on off-balance sheet exposures(3)		(59	)		(32	)		(18	)		(109	)		(46	)		(41	)		–			(87	)
Balance at end of period(2)	$	238		$	281		$	623		$	1,142		$	265		$	479		$	641		$	1,385

	As at and for the nine months ended
	July 31, 2022												July 31, 2021
($ millions)	Stage 1			Stage 2			Stage 3			Total			Stage 1			Stage 2			Stage 3			Total
Retail loans:
Residential mortgages
Balance at beginning of period	$	152		$	276		$	374		$	802		$	190		$	302		$	392		$	884
Provision for credit losses
Remeasurement(1)		(33	)		38			45			50			(124	)		51			134			61
Newly originated or purchased financial assets		28			–			–			28			39			–			–			39
Derecognition of financial assets and maturities		(4	)		(10	)		–			(14	)		(7	)		(19	)		–			(26	)
Changes in models and methodologies		–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		46			(39	)		(7	)		–			68			(56	)		(12	)		–
Stage 2		(6	)		29			(23	)		–			(9	)		50			(41	)		–
Stage 3		–			(11	)		11			–			–			(29	)		29			–
Gross write-offs		–			–			(54	)		(54	)		–			–			(82	)		(82	)
Recoveries		–			–			21			21			–			–			21			21
Foreign exchange and other movements		1			1			8			10			(4	)		(17	)		(38	)		(59	)
Balance at end of period(2)	$	184		$	284		$	375		$	843		$	153		$	282		$	403		$	838
Personal loans
Balance at beginning of period	$	644		$	1,071		$	626		$	2,341		$	864		$	1,471		$	820		$	3,155
Provision for credit losses
Remeasurement(1)		(447	)		296			456			305			(951	)		943			809			801
Newly originated or purchased financial assets		242			–			–			242			438			–			–			438
Derecognition of financial assets and maturities		(56	)		(88	)		–			(144	)		(150	)		(279	)		–			(429	)
Changes in models and methodologies		–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		365			(358	)		(7	)		–			753			(743	)		(10	)		–
Stage 2		(88	)		131			(43	)		–			(218	)		273			(55	)		–
Stage 3		(3	)		(157	)		160			–			(42	)		(421	)		463			–
Gross write-offs		–			–			(833	)		(833	)		–			–			(1,461	)		(1,461	)
Recoveries		–			–			190			190			–			–			205			205
Foreign exchange and other movements		1			1			10			12			(35	)		(68	)		(56	)		(159	)
Balance at end of period(2)	$	658		$	896		$	559		$	2,113		$	659		$	1,176		$	715		$	2,550
Credit cards
Balance at beginning of period	$	352		$	859		$	–		$	1,211		$	501		$	1,385		$	–		$	1,886
Provision for credit losses
Remeasurement(1)		(122	)		42			327			247			(398	)		299			824			725
Newly originated or purchased financial assets		103			–			–			103			75			–			–			75
Derecognition of financial assets and maturities		(35	)		(27	)		–			(62	)		(48	)		(80	)		–			(128	)
Changes in models and methodologies		–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		189			(189	)		–			–			313			(313	)		–			–
Stage 2		(48	)		48			–			–			(91	)		91			–			–
Stage 3		–			(104	)		104			–			–			(354	)		354			–
Gross write-offs		–			–			(580	)		(580	)		–			–			(1,309	)		(1,309	)
Recoveries		–			–			141			141			–			–			145			145
Foreign exchange and other movements		(7	)		(12	)		8			(11	)		(18	)		(56	)		(14	)		(88	)
Balance at end of period(2)	$	432		$	617		$	–		$	1,049		$	334		$	972		$	–		$	1,306
Total retail loans
Balance at beginning of period	$	1,148		$	2,206		$	1,000		$	4,354		$	1,555		$	3,158		$	1,212		$	5,925
Provision for credit losses
Remeasurement(1)		(602	)		376			828			602			(1,473	)		1,293			1,767			1,587
Newly originated or purchased financial assets		373			–			–			373			552			–			–			552
Derecognition of financial assets and maturities		(95	)		(125	)		–			(220	)		(205	)		(378	)		–			(583	)
Changes in models and methodologies		–			–			–			–			–			–			–			–
Transfer to (from):
Stage 1		600			(586	)		(14	)		–			1,134			(1,112	)		(22	)		–
Stage 2		(142	)		208			(66	)		–			(318	)		414			(96	)		–
Stage 3		(3	)		(272	)		275			–			(42	)		(804	)		846			–
Gross write-offs		–			–			(1,467	)		(1,467	)		–			–			(2,852	)		(2,852	)
Recoveries		–			–			352			352			–			–			371			371
Foreign exchange and other movements		(5	)		(10	)		26			11			(57	)		(141	)		(108	)		(306	)
Balance at end of period(2)	$	1,274		$	1,797		$	934		$	4,005		$	1,146		$	2,430		$	1,118		$	4,694
Non-retail loans:
Business and government
Balance at beginning of period	$	212		$	470		$	655		$	1,337		$	478		$	592		$	745		$	1,815
Provision for credit losses
Remeasurement(1)		(54	)		(74	)		196			68			(156	)		13			305			162
Newly originated or purchased financial assets		195			–			–			195			239			–			–			239
Derecognition of financial assets and maturities		(154	)		(73	)		(24	)		(251	)		(234	)		(45	)		(9	)		(288	)
Changes in models and methodologies		30			57			–			87			(4	)		(11	)		–			(15	)
Transfer to (from):
Stage 1		85			(85	)		–			–			50			(50	)		–			–
Stage 2		(18	)		18			–			–			(46	)		47			(1	)		–
Stage 3		–			(5	)		5			–			–			(5	)		5			–
Gross write-offs		–			–			(253	)		(253	)		–			–			(343	)		(343	)
Recoveries		–			–			104			104			–			–			26			26
Foreign exchange and other movements		1			5			(42	)		(36	)		(16	)		(21	)		(87	)		(124	)
Balance at end of period including off-balance sheet exposures(2)	$	297		$	313		$	641		$	1,251		$	311		$	520		$	641		$	1,472
Less: Allowance for credit losses on off-balance sheet exposures(3)		(59	)		(32	)		(18	)		(109	)		(46	)		(41	)		–			(87	)
Balance at end of period(2)	$	238		$	281		$	623		$	1,142		$	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 for the three months ended July 31, 2022 totaled $69 (July 31, 2021 – $61) and for the nine months ended July 31, 2022 totaled $193 (July 31, 2021 – $212).

(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, 2022								As at October 31, 2021
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Very low	$	208,768	$	730	$	–	$	209,498	$	187,163	$	5,610	$	–	$	192,773
Low		79,111		820		–		79,931		69,306		1,768		–		71,074
Medium		16,426		295		–		16,721		9,170		3,690		–		12,860
High		2,412		1,197		–		3,609		904		2,284		–		3,188
Very high		56		1,215		–		1,271		16		643		–		659
Loans not graded(2)		29,161		2,493		–		31,654		34,122		3,671		–		37,793
Default		–		–		1,281		1,281		–		–		1,331		1,331
Total	$	335,934	$	6,750	$	1,281	$	343,965	$	300,681	$	17,666	$	1,331	$	319,678
Allowance for credit losses		184		284		375		843		152		276		374		802
Carrying value	$	335,750	$	6,466	$	906	$	343,122	$	300,529	$	17,390	$	957	$	318,876

(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, 2022								As at October 31, 2021
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Very low	$	30,856	$	158	$	–	$	31,014	$	30,085	$	168	$	–	$	30,253
Low		27,090		437		–		27,527		25,719		574		–		26,293
Medium		8,381		1,142		–		9,523		8,290		1,127		–		9,417
High		6,896		1,991		–		8,887		5,686		2,307		–		7,993
Very high		65		1,305		–		1,370		82		1,157		–		1,239
Loans not graded(2)		16,186		1,276		–		17,462		14,159		1,353		–		15,512
Default		–		–		778		778		–		–		833		833
Total	$	89,474	$	6,309	$	778	$	96,561	$	84,021	$	6,686	$	833	$	91,540
Allowance for credit losses		658		896		559		2,113		644		1,071		626		2,341
Carrying value	$	88,816	$	5,413	$	219	$	94,448	$	83,377	$	5,615	$	207	$	89,199

(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, 2022								As at October 31, 2021
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3		Total		Stage 1		Stage 2		Stage 3		Total
Very low	$	1,757	$	33	$	–	$	1,790	$	1,517	$	76	$	–	$	1,593
Low		2,679		131		–		2,810		2,288		135		–		2,423
Medium		3,351		123		–		3,474		2,666		166		–		2,832
High		3,086		836		–		3,922		2,237		1,225		–		3,462
Very high		43		525		–		568		21		509		–		530
Loans not graded(1)		923		384		–		1,307		1,158		452		–		1,610
Default		–		–		–		–		–		–		–		–
Total	$	11,839	$	2,032	$	–	$	13,871	$	9,887	$	2,563	$	–	$	12,450
Allowance for credit losses		432		617		–		1,049		352		859		–		1,211
Carrying value	$	11,407	$	1,415	$	–	$	12,822	$	9,535	$	1,704	$	–	$	11,239

(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, 2022								As at October 31, 2021
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3		Total		Stage 1		Stage 2		Stage 3		Total
Very low	$	96,614	$	4	$	–	$	96,618	$	88,308	$	14	$	–	$	88,322
Low		20,350		7		–		20,357		17,880		12		–		17,892
Medium		7,745		33		–		7,778		6,858		36		–		6,894
High		3,707		285		–		3,992		3,103		745		–		3,848
Very high		40		322		–		362		24		212		–		236
Loans not graded(1)		8,118		1,344		–		9,462		9,126		2,204		–		11,330
Default		–		–		–		–		–		–		–		–
Carrying value	$	136,574	$	1,995	$	–	$	138,569	$	125,299	$	3,223	$	–	$	128,522

(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 July 31, 2022								As at October 31, 2021
Category of PD grades ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Very low	$	337,995	$	925	$	–	$	338,920	$	307,073	$	5,868	$	–	$	312,941
Low		129,230		1,395		–		130,625		115,193		2,489		–		117,682
Medium		35,903		1,593		–		37,496		26,984		5,019		–		32,003
High		16,101		4,309		–		20,410		11,930		6,561		–		18,491
Very high		204		3,367		–		3,571		143		2,521		–		2,664
Loans not graded(2)		54,388		5,497		–		59,885		58,565		7,680		–		66,245
Default		–		–		2,059		2,059		–		–		2,164		2,164
Total	$	573,821	$	17,086	$	2,059	$	592,966	$	519,888	$	30,138	$	2,164	$	552,190
Allowance for credit losses		1,274		1,797		934		4,005		1,148		2,206		1,000		4,354
Carrying value	$	572,547	$	15,289	$	1,125	$	588,961	$	518,740	$	27,932	$	1,164	$	547,836

(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 July 31, 2022								As at October 31, 2021
Grade ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Investment grade	$	145,900	$	1,903	$	–	$	147,803	$	110,786	$	892	$	–	$	111,678
Non-investment grade		100,304		8,476		–		108,780		91,945		7,570		–		99,515
Watch list		23		3,031		–		3,054		31		3,266		–		3,297
Loans not graded(2)		2,289		9		–		2,298		2,151		11		–		2,162
Default		–		–		2,193		2,193		–		–		2,292		2,292
Total	$	248,516	$	13,419	$	2,193	$	264,128	$	204,913	$	11,739	$	2,292	$	218,944
Allowance for credit losses		238		281		623		1,142		186		431		655		1,272
Carrying value	$	248,278	$	13,138	$	1,570	$	262,986	$	204,727	$	11,308	$	1,637	$	217,672

(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, 2022								As at October 31, 2021
Grade ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Investment grade	$	212,787	$	1,164	$	–	$	213,951	$	186,056	$	1,266	$	–	$	187,322
Non-investment grade		60,940		3,730		–		64,670		66,009		3,786		–		69,795
Watch list		5		901		–		906		12		2,160		–		2,172
Loans not graded(2)		4,278		–		–		4,278		4,155		–		–		4,155
Default		–		–		109		109		–		–		102		102
Total	$	278,010	$	5,795	$	109	$	283,914	$	256,232	$	7,212	$	102	$	263,546
Allowance for credit losses		59		32		18		109		26		39		–		65
Carrying value	$	277,951	$	5,763	$	91	$	283,805	$	256,206	$	7,173	$	102	$	263,481

(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 July 31, 2022								As at October 31, 2021
Grade ($ millions)	Stage 1		Stage 2		Stage 3(1)		Total		Stage 1		Stage 2		Stage 3(1)		Total
Investment grade	$	358,687	$	3,067	$	–	$	361,754	$	296,842	$	2,158	$	–	$	299,000
Non-investment grade		161,244		12,206		–		173,450		157,954		11,356		–		169,310
Watch list		28		3,932		–		3,960		43		5,426		–		5,469
Loans not graded(2)		6,567		9		–		6,576		6,306		11		–		6,317
Default		–		–		2,302		2,302		–		–		2,394		2,394
Total	$	526,526	$	19,214	$	2,302	$	548,042	$	461,145	$	18,951	$	2,394	$	482,490
Allowance for credit losses		297		313		641		1,251		212		470		655		1,337
Carrying value	$	526,229	$	18,901	$	1,661	$	546,791	$	460,933	$	18,481	$	1,739	$	481,153

(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

	As at July 31, 2022(2)
($ millions)	31-60 days		61-90 days		91 days and greater(3)		Total
Residential mortgages	$	890	$	406	$	–	$	1,296
Personal loans		435		221		–		656
Credit cards		166		107		207		480
Business and government		131		22		–		153
Total	$	1,622	$	756	$	207	$	2,585
	As at April 30, 2022(2)
($ millions)	31-60 days		61-90 days		91 days and greater(3)		Total
Residential mortgages	$	797	$	360	$	–	$	1,157
Personal loans		387		218		–		605
Credit cards		133		91		184		408
Business and government		111		87		–		198
Total	$	1,428	$	756	$	184	$	2,368
	As at October 31, 2021(2)
($ millions)	31-60 days		61-90 days		91 days and greater(3)		Total
Residential mortgages	$	732	$	327	$	–	$	1,059
Personal loans		411		210		–		621
Credit cards		125		83		201		409
Business and government		124		24		–		148
Total	$	1,392	$	644	$	201	$	2,237

(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 2022			April 30 2022			October 31 2021
Unpaid principal balance(1)	$	302		$	308		$	303
Credit related fair value adjustments		(68	)		(69	)		(68	)
Carrying value		234			239			235
Stage 3 allowance		(1	)		(1	)		(1	)
Carrying value net related allowance	$	233		$	238		$	234

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