Nature and extent of risks arising from financial instruments (Tables)

12 Months Ended

Oct. 31, 2024

Summary of Credit Exposure Associated with On-and Off-Balance Sheet Financial Instruments

Concentrations of credit risk indicate the relative sensitivity of our performance to developments affecting a particular industry or geographic location. The amounts of credit exposure associated with certain of our on- and off-balance sheet financial instruments are summarized in the following tables.


	As at October 31, 2024

(Millions of Canadian dollars, except percentage amounts)	Canada		%		United States		%		Europe		%		Other International		%		Total
On-balance sheet assets other than derivatives (1)	$	897,614		67%	$	297,335		22%	$	88,394		7%	$	54,912		4%	$	1,338,255
Derivatives before master netting agreements (2), (3)		21,555		14%		47,204		31%		71,198		46%		13,276		9%		153,233
	$	919,169		61%	$	344,539		23%	$	159,592		11%	$	68,188		5%	$	1,491,488
Off-balance sheet credit instruments (4)
Committed and uncommitted (5)	$	487,142		57 %	$	282,907		34%	$	51,516		6%	$	27,615		3%	$	849,180
Other		82,910		48 %		67,322		39%		18,162		11%		3,145		2%		171,539
	$	570,052		56 %	$	350,229		34%	$	69,678		7%	$	30,760		3%	$	1,020,719

	As at October 31, 2023

(Millions of Canadian dollars, except percentage amounts)	Canada		%		United States		%		Europe		%		Other International		%		Total
On-balance sheet assets other than derivatives (1)	$	798,259		66%	$	294,670		24%	$	76,637		6%	$	50,147		4%	$	1,219,713
Derivatives before master netting agreements (2), (3)		27,221		19%		36,698		25%		67,406		46%		14,470		10%		145,795
	$	825,480		60%	$	331,368		24%	$	144,043		11%	$	64,617		5%	$	1,365,508
Off-balance sheet credit instruments (4)
Committed and uncommitted (5)	$	427,849		56%	$	252,071		33%	$	51,393		8%	$	23,183		3%	$	754,496
Other		85,222		61%		30,737		22%		21,428		15%		2,731		2%		140,118
	$	513,071		57%	$	282,808		32%	$	72,821		8%	$	25,914		3%	$	894,614

(1)

Includes Assets purchased under reverse repurchase agreements and securities borrowed, Loans and Customers’ liability under acceptances. The largest concentrations in Canada are Ontario at 57% (October 31, 2023 – 57%),

Alberta, Saskatchewan and Manitoba

13% (October 31, 2023 – 15%), British Columbia and the territories at 16% (October 31, 2023 – 14%) and Quebec at 10% (October 31, 2023 – 10%). No industry accounts for more than 20% (October 31, 2023 – 20%) of total on-balance sheet credit instruments, with the exception of Banking, which accounted for 24% (October 31, 2023 – 25%), and Government, which accounted for 28% (October 31, 2023 – 28%). The classification of our sectors aligns with our view of credit risk by industry.

(2)

A further breakdown of our derivative exposures by risk rating and counterparty type is provided in Note 9.

(3)

Excludes valuation adjustments determined on a pooled basis.

(4)

Balances presented are contractual amounts representing our maximum exposure to credit risk.

(5)

Represents our maximum exposure to credit risk. Retail and wholesale commitments respectively comprise 40% and 60% of our total commitments (October 31, 2023 – 44% and 56%). The largest concentrations in the wholesale portfolio relate to Financial services at 14% (October 31, 2023 – 15%), Real estate and related at 12% (October 31, 2023 – 12%),

Investments at 10% (October 31, 2023 – 6%),

Utilities at 10% (October 31, 2023 – 11%),

and

Other services at 7% (October 31, 2023 – 8%). The classification of our sectors aligns with our view of credit risk by industry.