Independent Auditor’s Report

the consolidated balance sheets as of October 31, 2024 and 2023;

the consolidated statements of income for the years then ended;

the consolidated statements of comprehensive income for the years then ended;

the consolidated statements of changes in equity for the years then ended;

the consolidated statements of cash flows for the years then ended; and

the notes to the consolidated financial statements, comprising material accounting policy information and other explanatory information.

Allowance for Credit Losses on Loans Categorized as Stage 1 and Stage 2 (Stage 1 and Stage 2 ACL)

Refer to Note 2 – Summary of material accounting policies, estimates and judgments and Note 5 – Loans and allowance for credit losses to the consolidated financial statements.

The Bank’s allowance for credit losses on loans was $6,352 million as of October 31, 2024 and represents management’s estimate of expected credit losses on loans as of the balance sheet date, of which a significant portion relates to loans categorized as Stage 1 and Stage 2. Performing loans are categorized as Stage 1 from initial recognition to the date on which the loan has experienced a significant increase in credit risk relative to its initial recognition. Performing loans transfer into Stage 2 following a significant increase in credit risk relative to the initial recognition. Loans are categorized as Stage 3 when considered to be credit-impaired. As disclosed by management, the measurement of expected credit losses on loans is a complex calculation that involves a significant number of interrelated inputs and assumptions such as borrower risk ratings, forward-looking macroeconomic conditions, scenario design and the weight assigned to each scenario. The probability of default, loss given default and exposure at default inputs are modelled based on the macroeconomic variables that are most closely correlated with credit losses.

Management’s estimation of expected credit losses on loans categorized as Stage 1 and Stage 2 considers five distinct

Our approach to addressing the matter included the following procedures, among others:

•  Testing the effectiveness of controls relating to the estimation of the Stage 1 and Stage 2 ACL, including controls over:

^¡   The probability of default, loss given default and exposure at default models.

^¡    The design of future macroeconomic scenarios, the forecasting of certain macroeconomic variables, and the probability-weighting of these scenarios.

^¡    The assignment of borrower risk ratings.

^¡   The completeness and accuracy of certain data inputs underlying the Stage 1 and Stage 2 ACL calculation.

•  Testing management’s process for estimating the Stage 1 and Stage 2 ACL, which consisted of:

^¡    Testing the completeness and accuracy of certain underlying data used in the estimation of the Stage 1 and Stage 2 ACL.

^¡    Using professionals with specialized skill and knowledge to assist in evaluating:

•   The appropriateness of the probability of default, loss given default and exposure at default models used in the estimation of the Stage 1 and Stage 2 ACL.

future macroeconomic scenarios, each of which includes a forecast of relevant macroeconomic variables, designed to capture a wide range of possible outcomes and which are probability-weighted according to management’s expectation of the relative likelihood of the range of outcomes that each scenario represents at the reporting date. Significant management judgment is required in making assumptions and estimations when calculating the Stage 1 and Stage 2 ACL.

We considered this a key audit matter due to:

•  The significant judgment required by management when estimating the Stage 1 and Stage 2 ACL.

•  A high degree of auditor judgment and subjectivity in performing procedures related to management’s assumptions for:

^¡   Designing future macroeconomic scenarios.

^¡   Forecasting certain macroeconomic variables.

^¡    Probability-weighting scenarios.

^¡   Assigning borrower risk ratings.

•  The significant audit effort necessary to evaluate audit evidence as the estimation of the Stage 1 and Stage 2 ACL is a complex calculation that involves a large volume of data, interrelated inputs and assumptions, some of which are model-based.

•  The audit effort involved the use of professionals with specialized skill and knowledge.

•   The reasonableness of significant inputs and assumptions used in the estimation of the Stage 1 and Stage 2 ACL related to:

•   The design of future macroeconomic scenarios.

•   Certain forecasted macroeconomic variables.

•   The probability-weights assigned to these scenarios.

•   The assignment of borrower risk ratings for samples of loans.

Uncertain Tax Positions

Refer to Note 2 – Summary of material accounting policies, estimates and judgments and Note 21 – Income taxes to the consolidated financial statements.

The Bank is subject to income tax laws in various jurisdictions where it operates and the complex tax laws are potentially subject to different interpretations by management and the relevant taxation authorities. As disclosed by management, significant judgment is required in the interpretation of the relevant tax laws, and in assessing the probability of acceptance of the Bank’s tax positions to determine tax provisions, which includes management’s estimate of uncertain tax positions that are under audit or appeal by the relevant taxation authorities. Management performs a review on a quarterly basis to incorporate its assessment based on information available, but additional liability and income tax expense could result based on the acceptance of the Bank’s tax positions by the relevant taxation authorities.

In some cases, the Bank has received reassessments denying the tax deductibility of dividends from certain transactions including those with Tax Indifferent Investors.

We considered this a key audit matter due to:

•  The significant judgment required by management, including a high degree of estimation uncertainty, when:

^¡   Interpreting the relevant tax laws.

^¡    Assessing the probability of acceptance of the Bank’s tax positions, which includes management’s estimate of uncertain tax positions that are under audit or appeal by the relevant taxation authorities.

•  A high degree of auditor judgment and subjectivity in evaluating the uncertain tax positions.

•  The audit effort involved the use of professionals with specialized skill and knowledge.

Our approach to addressing the matter included the following procedures, among others:

•  Testing the effectiveness of controls relating to the evaluation of uncertain tax positions and the impact on tax provisions.

•  Testing management’s process for (i) assessing the probability of acceptance of the Bank’s tax positions; and (ii) estimating provisions relating to uncertain tax positions, if applicable, which reflects management’s estimate of uncertain tax positions that are under audit or appeal by the relevant taxation authorities. This consisted of:

^¡   Reviewing correspondence with relevant taxation authorities.

^¡    Evaluating the appropriateness of the methods used.

^¡   Testing the completeness and accuracy of underlying data used in the estimate.

^¡    Making inquiries of the Bank’s internal and external legal counsel.

^¡   Evaluating, with the assistance of professionals with specialized skill and knowledge:

•   Application of relevant tax laws.

•   The reasonableness of management’s assessment of whether it is probable that the relevant taxation authorities will accept the Bank’s tax positions.

•   Evidence used by management.

Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.

Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Bank’s internal control.

Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.

Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Bank’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Bank to cease to continue as a going concern.

Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.

Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within the Bank to express an opinion on the consolidated financial statements. We are responsible for the direction, supervision and performance of the group audit. We remain solely responsible for our audit opinion.