v3.24.3
Income taxes (Tables)
 12 Months Ended
Oct. 31, 2024
Text Block [Abstract]  
Components of Tax Expenses
Components of tax expense

 
 
 
 
 
For the year ended
 
 
 
October 31
2024
 
 
October 31
2023
 
(Millions of Canadian dollars)
 
  
 
 
(Restated – Note 2)
 
Income taxes (recoveries) in Consolidated Statements of Income
    
Current tax
    
Tax expense for current year
  
$
4,829
 
   $ 4,074  
Adjustments for prior years
  
 
298
 
     851  
Recoveries arising from previously unrecognized tax loss, tax credit or temporary difference of a prior
period
  
 
(4
)
     (100 ) 
   
 
5,123
 
     4,825  
Deferred tax
    
Origination and reversal of temporary difference
  
 
(1,118
)
     (1,308 ) 
Effects of changes in tax rates
  
 
–
 
     (47 ) 
Adjustments for prior years
  
 
(383
)
     125  
Recoveries arising from previously unrecognized tax loss, tax credit or temporary difference of a prior period, net
  
 
–
 
     (24 ) 
   
 
(1,501
)
     (1,254 ) 
   
 
3,622
 
     3,571  
Income taxes (recoveries) in Consolidated Statements of Comprehensive Income and Changes in Equity
    
Other comprehensive income
    
Net unrealized gains (losses) on debt securities and loans at fair value through other comprehensive income
  
 
302
 
     (10 ) 
Provision for credit losses recognized in income
  
 
(3
) 
     –  
Reclassification of net losses (gains) on debt securities and loans at fair value through other comprehensive income to income
  
 
(39
) 
     (39 ) 
Unrealized foreign currency translation gains (losses)
  
 
(11
) 
     20  
Net foreign currency translation gains (losses) from hedging activities
  
 
(195
) 
     (306 ) 
Reclassification of losses (gains) on net investment hedging activities to income
  
 
–
 
     45  
Net gains (losses) on derivatives designated as cash flow hedges
  
 
105
 
     190  
Reclassification of losses (gains) on derivatives designated as cash flow hedges to income
  
 
(309
) 
     59  
Remeasurement gains (losses) on employee benefit plans
  
 
202
 
     (68 ) 
Net gains (losses) from fair value change due to credit risk on financial liabilities designated at fair value through profit or loss
  
 
(399
) 
     (222 ) 
Net gains (losses) on equity securities designated at fair value through other comprehensive income
  
 
43
 
     24  
Share-based compensation awards
  
 
(12
)
     2  
Distributions on other equity instruments and issuance costs
  
 
(69
)
     (59 ) 
   
 
(385
)
     (364 ) 
Total income taxes
  
$
3,237
 
   $ 3,207  
Reconciliation to Statutory Tax Rate
Reconciliation to statutory tax rate
 
  
 
For the year ended
 
(Millions of Canadian dollars, except for percentage amounts)
 
October 31, 2024
 
 
  October 31, 2023 (Restated – Note 2)
 
Income taxes at Canadian statutory tax rate
  
$
5,502
 
   
 
27.7
% 
   $ 5,037        27.7 % 
Increase (decrease) in income taxes resulting from:
          
Lower average tax rate applicable to subsidiaries
  
 
(1,971
)
   
 
(9.9
)
     (2,081 )       (11.4 ) 
Tax-exempt income from securities
  
 
(52
)
 
   
 
(0.3
)
 
     (337 )       (1.9 ) 
Tax rate change
  
 
–
 
   
 
–
 
     1,050        5.8  
Other
  
 
143
 
   
 
0.7
 
     (98 )       (0.6 ) 
Income taxes in Consolidated Statements of Income / effective tax rate
  
$
3,622
 
   
 
18.2
% 
   $ 3,571        19.6 % 
Significant Components of Deferred Tax Assets and Liabilities
Significant components of deferred tax assets and liabilities
 
  
 
As at and for the year ended October 31, 2024
 
(Millions of Canadian dollars)
 
Net asset
beginning of
period 
(1)
 
 
Change
through
equity
 
 
Change
through
profit or loss
 
 
Exchange
rate
differences
 
 
Acquisitions/
disposals
 
 
Net asset
end of
period
 
Net deferred tax asset/(liability)
 
 
 
 
 
 
Allowance for credit losses
  
$
1,174
 
  
$
4
 
  
$
217
 
  
$
(1
)
  
$
–
  
$
1,394
 
Deferred compensation
  
 
1,522
 
  
 
12
 
  
 
614
 
  
 
19
 
  
 
–
 
  
 
2,167
 
Business realignment charges
  
 
23
 
  
 
–
 
  
 
16
 
  
 
–
 
  
 
4
 
  
 
43
 
Tax loss and tax credit carryforwards
  
 
261
 
  
 
–
 
  
 
71
 
  
 
(1
)
  
 
–
  
 
331
 
Deferred (income) expense
  
 
651
 
  
 
4
 
  
 
641
 
  
 
2
 
  
 
20
 
  
 
1,318
 
Financial instruments measured at fair value through other comprehensive income
  
 
(321
) 
  
 
164
  
 
(1
)
  
 
–
  
 
–
 
  
 
(158
)
Premises and equipment and intangibles
  
 
(967
) 
  
 
–
  
 
136
 
  
 
(22
)
  
 
(623
)
  
 
(1,476
)
Pension and post-employment related
  
 
(333
) 
  
 
(206
)
  
 
20
  
 
(1
)
  
 
57
  
 
(463
)
Other
  
 
680
 
  
 
–
 
  
 
(213
)
  
 
–
  
 
163
 
  
 
630
 
   
$
 2,690
 
  
$
(22
)
  
$
 1,501
  
$
  (4
)
  
$
 (379
)
  
$
 3,786
 
Comprising
            
Deferred tax assets
  
$
3,116
 
          
$
4,328
 
Deferred tax liabilities
  
 
(426
) 
                                  
 
(542
)
   
$
2,690
 
                                  
$
3,786
 
       
     As at and for the year ended October 31, 2023  
(Millions of Canadian dollars)
   Net asset
beginning of
period
(1)
     Change
through
equity		     Change
through
profit or loss 
(1)
     Exchange
rate
differences		     Acquisitions/
disposals		     Net asset
end of
period		  
Net deferred tax asset/(liability)
            
Allowance for credit losses
   $ 987     $ –     $ 185     $ 2     $ –     $ 1,174  
Deferred compensation
     1,504       (2 )      (2 )      22       –       1,522  
Business realignment charges
     12       –       11       –       –       23  
Tax loss and tax credit carryforwards
     322       –       (57 )      1       (5 )      261  
Deferred (income) expense
     6       (3 )      661       (11 )      (2 )      651  
Financial instruments measured at fair value through other comprehensive income
     (16 )      (330 )      –       25       –       (321 ) 
Premises and equipment and intangibles
     (1,234 )      –       302       (27 )      (8 )      (967 ) 
Pension and post-employment related
     (435 )      68       37       1       (4 )      (333 ) 
Other
     535       4       117       24       –       680  
    $ 1,681     $ (263 )    $ 1,254     $ 37     $ (19 )    $ 2,690  
Comprising
            
Deferred tax assets
   $ 2,120             $ 3,116  
Deferred tax liabilities
     (439 )                                      (426 ) 
    $ 1,681                                     $ 2,690  
 
(1)   Certain amounts are restated to reflect the IFRS 17 transition adjustments as at November 1, 2022. Refer to Note 2 for further
details
.