v3.24.3
Offsetting financial assets and financial liabilities
 12 Months Ended
Oct. 31, 2024
Text Block [Abstract]  
Offsetting financial assets and financial liabilities
Note 29 Offsetting financial assets and financial liabilities
Offsetting within our Consolidated Balance Sheets may be achieved where financial assets and liabilities are subject to master netting arrangements that provide the currently enforceable right of offset and where there is an intention to settle on a net basis, or realize the assets and settle the liabilities simultaneously. For derivative contracts and repurchase and reverse repurchase arrangements, this is generally achieved when there is a market mechanism for settlement (e.g., central counterparty exchange or clearing house) which provides daily net settlement of cash flows arising from these contracts. Margin receivables and margin payables are generally offset as they settle simultaneously through a market settlement mechanism.
Amounts that do not qualify for offsetting include master netting arrangements that only permit outstanding transactions with the same counterparty to be offset in an event of default or occurrence of other predetermined events. Such master netting arrangements include the International Swaps and Derivatives Association Master Agreement or certain derivative exchange or clearing counterparty agreements for derivative contracts, global master repurchase agreements and global master securities lending agreements for repurchase, reverse repurchase and other similar secured lending and borrowing arrangements.
The amount of financial collateral received or pledged subject to master netting arrangements or similar agreements that do not qualify for offsetting refers to the collateral received or pledged to cover the net exposure between counterparties by enabling the collateral to be realized in an event of default or the occurrence of other predetermined events. C
er
tain amounts of collateral are restricted from b
ei
ng sold or re-pledged unless there is an e
v
ent of
default
or the occurrence of other predetermined events.
 
The following tables provide the financial instrument amounts that have been offset on the Consolidated Balance Sheets and the amounts that do not qualify for offsetting but are subject to enforceable master netting arrangements or similar agreements. The amounts presented are not intended to represent our actual exposure to credit risk.
Financial instruments subject to enforceable master netting arrangements or similar agreements
 
  
 
As at October 31, 2024
 
 
 
Amounts subject to enforceable netting arrangements
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Related amounts not
offset on the Consolidated
Balance Sheets 
(1)
 
 
 
 
 
 
 
 
 
 
(Millions of Canadian dollars)
 
Gross amounts
of recognized
financial
instruments
 
 
Gross amounts
offset on the
Consolidated
Balance Sheets
 
 
Net amounts
presented in the
Consolidated
Balance Sheets
 
 
Impact of
master
netting
agreements
 
 
Financial
collateral 
(2)
 
 
Net amounts
 
 
Amounts not
subject to
enforceable
netting
arrangements
 
 
Net amounts
presented
on the
Consolidated
Balance Sheets
 
Financial assets
 
 
 
 
 
 
 
 
Assets purchased under reverse repurchase agreements and securities borrowed
  
$
495,881
 
  
$
145,078
 
  
$
350,803
 
  
$
112
 
  
$
349,044
 
  
$
1,647
 
  
$
–
 
  
$
350,803
 
Derivative assets
  
 
145,420
 
  
 
1,568
 
  
 
143,852
 
  
 
105,433
 
  
 
16,806
 
  
 
21,613
 
  
 
6,760
 
  
 
150,612
 
Other financial assets
  
 
2,940
 
  
 
527
 
  
 
2,413
 
  
 
58
 
  
 
288
 
  
 
2,067
 
  
 
–
 
  
 
2,413
 
   
$
644,241
 
  
$
147,173
 
  
$
497,068
 
  
$
105,603
 
  
$
366,138
 
  
$
25,327
 
  
$
6,760
 
  
$
503,828
 
Financial liabilities
                
Obligations related to assets sold under repurchase agreements and securities loaned
  
$
450,399
 
  
$
145,078
 
  
$
305,321
 
  
$
112
 
  
$
302,779
 
  
$
2,430
 
  
$
–
 
  
$
305,321
 
Derivative liabilities
  
 
151,564
 
  
 
1,568
 
  
 
149,996
 
  
 
105,433
 
  
 
17,727
 
  
 
26,836
 
  
 
13,767
 
  
 
163,763
 
Other financial liabilities
  
 
1,941
 
  
 
527
 
  
 
1,414
 
  
 
58
 
  
 
–
 
  
 
1,356
 
  
 
–
 
  
 
1,414
 
   
$
603,904
 
  
$
147,173
 
  
$
456,731
 
  
$
105,603
 
  
$
320,506
 
  
$
30,622
 
  
$
13,767
 
  
$
470,498
 
 
     As at October 31, 2023  
  Amounts subject to enforceable netting arrangements              
                   
Related amounts not
offset on the Consolidated
Balance Sheets (1)
                    
(Millions of Canadian dollars)  
Gross amounts
of recognized
financial
instruments
    
Gross amounts
offset on the
Consolidated
Balance Sheets
    
Net amounts
presented in the
Consolidated
Balance Sheets
    
Impact of
master
netting
agreements
    
Financial
collateral (2)
     Net amounts    
Amounts not
subject to
enforceable
netting
arrangements
    
Net amounts
presented
on the
Consolidated
Balance Sheets
  
Financial assets
                
Assets purchased under reverse repurchase agreements and securities borrowed
   $ 436,617     $ 96,676     $ 339,941     $ 201     $ 336,112     $ 3,628     $ 250     $ 340,191  
Derivative assets
     138,318       1,544       136,774       89,889       22,310       24,575       5,676       142,450  
Other financial assets
     3,306       443       2,863       19       421       2,423       –       2,863  
    $ 578,241     $ 98,663     $ 479,578     $ 90,109     $ 358,843     $ 30,626     $ 5,926     $ 485,504  
Financial liabilities
                
Obligations related to assets sold under repurchase agreements and securities loaned
   $ 427,330     $ 96,676     $ 330,654     $ 201     $ 325,674     $ 4,779     $ 4,584     $ 335,238  
Derivative liabilities
     132,770       1,544       131,226       89,889       17,340       23,997       11,403       142,629  
Other financial liabilities
     1,475       443       1,032       19       –       1,013       –       1,032  
    $ 561,575     $ 98,663     $ 462,912     $ 90,109     $ 343,014     $ 29,789     $ 15,987     $ 478,899  
 
(1)   Financial collateral is reflected at fair value. The financial instrument amounts and financial collateral disclosed are limited to the net balance sheet exposure, and any over-collateralization is excluded from the table.
(2)  
Includes cash collateral of $14 billion (October 31, 2023 – $
17
billion) and non-cash collateral of $352 billion (October 31, 2023 – $
342 billion) received for financial assets and cash collateral of $14 billion (October 31, 2023 – $15
billion) and non-cash collateral of $307 billion (October 31, 2023 – $
328 billion) pledged for financial liabilities.