| Loans and Allowance for Credit Losses |
Note 3: Loans and Allowance for Credit Losses Allowance for Credit Losses The ACL recorded in our Consolidated Balance Sheet is maintained at a level we consider adequate to absorb credit-related losses on our loans and other credit instruments. The ACL amounted to $5,798 million as at April 30, 2026 ($5,739 million as at October 31, 2025) of which $5,064 million ($5,050 million as at October 31, 2025) was recorded in loans and $734 million ($689 million as at October 31, 2025) was recorded in other liabilities in our Consolidated Balance Sheet. Changes in gross balances, including originations, maturities, sales, write-offs and repayments in the normal course of operations, impact the ACL.
The following tables show the continuity in the loss allowance by product type for the three and six months ended April 30, 2026 and April 30, 2025. Transfers represent the amount of ECL that moved between stages during the period, for example, moving from a 12-month (Stage 1) to lifetime (Stage 2) ECL measurement basis. Net remeasurements represent the ECL impact due to transfers between stages, as well as changes in economic forecasts and credit quality. Model changes include the ECL impact of new calculation models or methodologies which may impact the need for previously established experienced credit judgments. | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Canadian $ in millions) | | | For the three months ended | April 30, 2026 | April 30, 2025 | | Stage 1 | Stage 2 | Stage 3 (1) | Total | Stage 1 | Stage 2 | Stage 3 (1) | Total | | Loans: Residential mortgages | | | | | | | | | | Balance as at beginning of period | $ | 55 | | $ | 180 | | $ | 17 | | $ | 252 | | $ | 62 | | $ | 191 | | $ | 22 | | $ | 275 | | | Transfer to Stage 1 | 62 | | (62) | | – | | – | | 37 | | (37) | | – | | – | | | Transfer to Stage 2 | (3) | | 22 | | (19) | | – | | (3) | | 7 | | (4) | | – | | | Transfer to Stage 3 | – | | (16) | | 16 | | – | | – | | (10) | | 10 | | – | | | Net remeasurement of loss allowance | (2) | | 18 | | 27 | | 43 | | (32) | | 50 | | 5 | | 23 | | | Loan originations | 3 | | – | | – | | 3 | | 5 | | – | | – | | 5 | | | Derecognitions and maturities | (1) | | (5) | | – | | (6) | | – | | (3) | | – | | (3) | | Model changes (2) | (64) | | 12 | | – | | (52) | | – | | – | | – | | – | | Total PCL (3) | (5) | | (31) | | 24 | | (12) | | 7 | | 7 | | 11 | | 25 | | Write-offs (4) | – | | – | | (4) | | (4) | | – | | – | | (4) | | (4) | | | Recoveries of previous write-offs | – | | – | | 2 | | 2 | | – | | – | | 3 | | 3 | | | Foreign exchange and other | (1) | | 1 | | (17) | | (17) | | (2) | | (4) | | (14) | | (20) | | | Balance as at end of period | $ | 49 | | $ | 150 | | $ | 22 | | $ | 221 | | $ | 67 | | $ | 194 | | $ | 18 | | $ | 279 | | | Loans: Consumer instalment and other personal | | | | | | | | | | Balance as at beginning of period | $ | 193 | | $ | 558 | | $ | 183 | | $ | 934 | | $ | 194 | | $ | 514 | | $ | 183 | | $ | 891 | | | Transfer to Stage 1 | 79 | | (75) | | (4) | | – | | 74 | | (70) | | (4) | | – | | | Transfer to Stage 2 | (15) | | 26 | | (11) | | – | | (15) | | 28 | | (13) | | – | | | Transfer to Stage 3 | (2) | | (47) | | 49 | | – | | (2) | | (43) | | 45 | | – | | | Net remeasurement of loss allowance | (46) | | 149 | | 121 | | 224 | | (67) | | 133 | | 108 | | 174 | | | Loan originations | 11 | | – | | – | | 11 | | 7 | | – | | – | | 7 | | | Derecognitions and maturities | (4) | | (11) | | – | | (15) | | (4) | | (10) | | – | | (14) | | Model changes (2) | (11) | | 2 | | – | | (9) | | – | | – | | – | | – | | Total PCL (3) | 12 | | 44 | | 155 | | 211 | | (7) | | 38 | | 136 | | 167 | | Write-offs (4) | – | | – | | (183) | | (183) | | – | | – | | (168) | | (168) | | | Recoveries of previous write-offs | – | | – | | 41 | | 41 | | – | | – | | 44 | | 44 | | | Foreign exchange and other | (1) | | (1) | | (34) | | (36) | | (4) | | (7) | | (16) | | (27) | | | Balance as at end of period | $ | 204 | | $ | 601 | | $ | 162 | | $ | 967 | | $ | 183 | | $ | 545 | | $ | 179 | | $ | 907 | | | Loans: Credit cards | | | | | | | | | | Balance as at beginning of period | $ | 205 | | $ | 593 | | $ | – | | $ | 798 | | $ | 229 | | $ | 492 | | $ | – | | $ | 721 | | | Transfer to Stage 1 | 109 | | (109) | | – | | – | | 58 | | (58) | | – | | – | | | Transfer to Stage 2 | (18) | | 19 | | (1) | | – | | (24) | | 24 | | – | | – | | | Transfer to Stage 3 | (1) | | (127) | | 128 | | – | | (2) | | (112) | | 114 | | – | | | Net remeasurement of loss allowance | (82) | | 204 | | 71 | | 193 | | (55) | | 189 | | 81 | | 215 | | | Loan originations | 10 | | – | | – | | 10 | | 18 | | – | | – | | 18 | | | Derecognitions and maturities | (3) | | (11) | | – | | (14) | | (4) | | (10) | | – | | (14) | | Model changes (2) | (4) | | – | | – | | (4) | | – | | – | | – | | – | | Total PCL (3) | 11 | | (24) | | 198 | | 185 | | (9) | | 33 | | 195 | | 219 | | Write-offs (4) | – | | – | | (219) | | (219) | | – | | – | | (230) | | (230) | | | Recoveries of previous write-offs | – | | – | | 44 | | 44 | | – | | – | | 56 | | 56 | | | Foreign exchange and other | 1 | | 1 | | (23) | | (21) | | (3) | | (17) | | (21) | | (41) | | | Balance as at end of period | $ | 217 | | $ | 570 | | $ | – | | $ | 787 | | $ | 217 | | $ | 508 | | $ | – | | $ | 725 | | | Loans: Business and government | | | | | | | | | | Balance as at beginning of period | $ | 933 | | $ | 1,892 | | $ | 944 | | $ | 3,769 | | $ | 860 | | $ | 1,938 | | $ | 753 | | $ | 3,551 | | | Transfer to Stage 1 | 210 | | (206) | | (4) | | – | | 93 | | (88) | | (5) | | – | | | Transfer to Stage 2 | (87) | | 145 | | (58) | | – | | (59) | | 89 | | (30) | | – | | | Transfer to Stage 3 | (1) | | (81) | | 82 | | – | | (2) | | (82) | | 84 | | – | | | Net remeasurement of loss allowance | (199) | | (193) | | 337 | | (55) | | 4 | | 318 | | 374 | | 696 | | | Loan originations | 73 | | – | | – | | 73 | | 68 | | – | | – | | 68 | | | Derecognitions and maturities | (30) | | (120) | | – | | (150) | | (30) | | (99) | | – | | (129) | | Model changes (2) | 10 | | 468 | | – | | 478 | | – | | – | | – | | – | | Total PCL (3) | (24) | | 13 | | 357 | | 346 | | 74 | | 138 | | 423 | | 635 | | Write-offs (4) | – | | – | | (343) | | (343) | | – | | – | | (371) | | (371) | | | Recoveries of previous write-offs | – | | – | | 54 | | 54 | | – | | – | | 93 | | 93 | | | Foreign exchange and other | (1) | | 33 | | (35) | | (3) | | (32) | | (54) | | (117) | | (203) | | | Balance as at end of period | $ | 908 | | $ | 1,938 | | $ | 977 | | $ | 3,823 | | $ | 902 | | $ | 2,022 | | $ | 781 | | $ | 3,705 | | | Total as at end of period | $ | 1,378 | | $ | 3,259 | | $ | 1,161 | | $ | 5,798 | | $ | 1,369 | | $ | 3,269 | | $ | 978 | | $ | 5,616 | | | Comprising: Loans | $ | 1,068 | | $ | 2,895 | | $ | 1,101 | | $ | 5,064 | | $ | 1,112 | | $ | 2,938 | | $ | 910 | | $ | 4,960 | | Other credit instruments (5) | 310 | | 364 | | 60 | | 734 | | 257 | | 331 | | 68 | | 656 | |
(1)Includes changes in the allowance for purchased credit impaired (PCI) loans. (2)Represents the impact of IFRS 9 model enhancements, which reduced the need for previously established experienced credit judgement overlays. (3)Excludes PCL on other assets of $9 million for the three months ended April 30, 2026 ($8 million for the three months ended April 30, 2025). (4)Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. (5)Other credit instruments, including off-balance sheet items, are recorded in other liabilities in our Consolidated Balance Sheet. | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Canadian $ in millions) | | | For the six months ended | April 30, 2026 | April 30, 2025 | | Stage 1 | Stage 2 | Stage 3 (1) | Total | Stage 1 | Stage 2 | Stage 3 (1) | Total | | Loans: Residential mortgages | | | | | | | | | | Balance as at beginning of period | $ | 56 | | $ | 179 | | $ | 12 | | $ | 247 | | $ | 56 | | $ | 186 | | $ | 19 | | $ | 261 | | | Transfer to Stage 1 | 84 | | (83) | | (1) | | – | | 82 | | (81) | | (1) | | – | | | Transfer to Stage 2 | (7) | | 40 | | (33) | | – | | (5) | | 14 | | (9) | | – | | | Transfer to Stage 3 | – | | (30) | | 30 | | – | | – | | (18) | | 18 | | – | | | Net remeasurement of loss allowance | (22) | | 45 | | 47 | | 70 | | (74) | | 101 | | 18 | | 45 | | | Loan originations | 6 | | – | | – | | 6 | | 10 | | – | | – | | 10 | | | Derecognitions and maturities | (3) | | (11) | | – | | (14) | | (1) | | (7) | | – | | (8) | | Model changes (2) | (64) | | 12 | | – | | (52) | | – | | – | | – | | – | | Total PCL (3) | (6) | | (27) | | 43 | | 10 | | 12 | | 9 | | 26 | | 47 | | Write-offs (4) | – | | – | | (6) | | (6) | | – | | – | | (5) | | (5) | | | Recoveries of previous write-offs | – | | – | | 5 | | 5 | | – | | – | | 4 | | 4 | | | Foreign exchange and other | (1) | | (2) | | (32) | | (35) | | (1) | | (1) | | (26) | | (28) | | | Balance as at end of period | $ | 49 | | $ | 150 | | $ | 22 | | $ | 221 | | $ | 67 | | $ | 194 | | $ | 18 | | $ | 279 | | | Loans: Consumer instalment and other personal | | | | | | | | | | Balance as at beginning of period | $ | 200 | | $ | 555 | | $ | 160 | | $ | 915 | | $ | 197 | | $ | 471 | | $ | 175 | | $ | 843 | | | Transfer to Stage 1 | 163 | | (156) | | (7) | | – | | 147 | | (137) | | (10) | | – | | | Transfer to Stage 2 | (32) | | 53 | | (21) | | – | | (28) | | 53 | | (25) | | – | | | Transfer to Stage 3 | (4) | | (94) | | 98 | | – | | (4) | | (85) | | 89 | | – | | | Net remeasurement of loss allowance | (118) | | 265 | | 255 | | 402 | | (135) | | 264 | | 246 | | 375 | | | Loan originations | 17 | | – | | – | | 17 | | 16 | | – | | – | | 16 | | | Derecognitions and maturities | (8) | | (20) | | – | | (28) | | (9) | | (19) | | – | | (28) | | Model changes (2) | (11) | | 2 | | – | | (9) | | – | | – | | – | | – | | Total PCL (3) | 7 | | 50 | | 325 | | 382 | | (13) | | 76 | | 300 | | 363 | | Write-offs (4) | – | | – | | (367) | | (367) | | – | | – | | (338) | | (338) | | | Recoveries of previous write-offs | – | | – | | 74 | | 74 | | – | | – | | 72 | | 72 | | | Foreign exchange and other | (3) | | (4) | | (30) | | (37) | | (1) | | (2) | | (30) | | (33) | | | Balance as at end of period | $ | 204 | | $ | 601 | | $ | 162 | | $ | 967 | | $ | 183 | | $ | 545 | | $ | 179 | | $ | 907 | | | Loans: Credit cards | | | | | | | | | | Balance as at beginning of period | $ | 188 | | $ | 603 | | $ | – | | $ | 791 | | $ | 233 | | $ | 472 | | $ | – | | $ | 705 | | | Transfer to Stage 1 | 203 | | (203) | | – | | – | | 124 | | (124) | | – | | – | | | Transfer to Stage 2 | (35) | | 36 | | (1) | | – | | (46) | | 46 | | – | | – | | | Transfer to Stage 3 | (3) | | (247) | | 250 | | – | | (4) | | (219) | | 223 | | – | | | Net remeasurement of loss allowance | (145) | | 405 | | 133 | | 393 | | (115) | | 364 | | 160 | | 409 | | | Loan originations | 19 | | – | | – | | 19 | | 33 | | – | | – | | 33 | | | Derecognitions and maturities | (6) | | (23) | | – | | (29) | | (6) | | (19) | | – | | (25) | | Model changes (2) | (4) | | – | | – | | (4) | | – | | – | | – | | – | | Total PCL (3) | 29 | | (32) | | 382 | | 379 | | (14) | | 48 | | 383 | | 417 | | Write-offs (4) | – | | – | | (427) | | (427) | | – | | – | | (453) | | (453) | | | Recoveries of previous write-offs | – | | – | | 86 | | 86 | | – | | – | | 109 | | 109 | | | Foreign exchange and other | – | | (1) | | (41) | | (42) | | (2) | | (12) | | (39) | | (53) | | | Balance as at end of period | $ | 217 | | $ | 570 | | $ | – | | $ | 787 | | $ | 217 | | $ | 508 | | $ | – | | $ | 725 | | | Loans: Business and government | | | | | | | | | | Balance as at beginning of period | $ | 931 | | $ | 1,997 | | $ | 858 | | $ | 3,786 | | $ | 892 | | $ | 1,698 | | $ | 537 | | $ | 3,127 | | | Transfer to Stage 1 | 324 | | (316) | | (8) | | – | | 252 | | (231) | | (21) | | – | | | Transfer to Stage 2 | (158) | | 242 | | (84) | | – | | (170) | | 238 | | (68) | | – | | | Transfer to Stage 3 | (3) | | (167) | | 170 | | – | | (4) | | (220) | | 224 | | – | | | Net remeasurement of loss allowance | (259) | | (11) | | 645 | | 375 | | (143) | | 706 | | 780 | | 1,343 | | | Loan originations | 157 | | – | | – | | 157 | | 146 | | – | | – | | 146 | | | Derecognitions and maturities | (67) | | (233) | | – | | (300) | | (68) | | (184) | | – | | (252) | | Model changes (2) | 10 | | 468 | | – | | 478 | | – | | – | | – | | – | | Total PCL (3) | 4 | | (17) | | 723 | | 710 | | 13 | | 309 | | 915 | | 1,237 | | Write-offs (4) | – | | – | | (580) | | (580) | | – | | – | | (624) | | (624) | | | Recoveries of previous write-offs | – | | – | | 111 | | 111 | | – | | – | | 154 | | 154 | | | Foreign exchange and other | (27) | | (42) | | (135) | | (204) | | (3) | | 15 | | (201) | | (189) | | | Balance as at end of period | $ | 908 | | $ | 1,938 | | $ | 977 | | $ | 3,823 | | $ | 902 | | $ | 2,022 | | $ | 781 | | $ | 3,705 | | | Total as at end of period | $ | 1,378 | | $ | 3,259 | | $ | 1,161 | | $ | 5,798 | | $ | 1,369 | | $ | 3,269 | | $ | 978 | | $ | 5,616 | | | Comprising: Loans | $ | 1,068 | | $ | 2,895 | | $ | 1,101 | | $ | 5,064 | | $ | 1,112 | | $ | 2,938 | | $ | 910 | | $ | 4,960 | | Other credit instruments (5) | 310 | | 364 | | 60 | | 734 | | 257 | | 331 | | 68 | | 656 | |
(1)Includes changes in the allowance for PCI loans. (2)Represents the impact of IFRS 9 model enhancements, which reduced the need for previously established experienced credit judgement overlays. (3)Excludes PCL on other assets of $4 million for the six months ended April 30, 2026 ($1 million for the six months ended April 30, 2025). (4)Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. (5)Other credit instruments, including off-balance sheet items, are recorded in other liabilities in our Consolidated Balance Sheet. Credit Risk Exposure The following table sets out our credit risk exposure for all loans carried at amortized cost, FVOCI or FVTPL as at April 30, 2026 and October 31, 2025. Stage 1 represents performing loans carried with up to a 12-month ECL, Stage 2 represents performing loans carried with a lifetime ECL, and Stage 3 represents loans with a lifetime ECL that are credit impaired. | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Canadian $ in millions) | | | | | | | | | | For the three months ended | April 30, 2026 | October 31, 2025 | | Stage 1 | Stage 2 | Stage 3 (1) | Total | Stage 1 | Stage 2 | Stage 3 (1) | Total | Loans: Residential mortgages (2) | | | | | | | | | | Exceptionally low | $ | – | | $ | – | | $ | – | | $ | – | | $ | 1 | | $ | – | | $ | – | | $ | 1 | | | Very low | 115,795 | | 466 | | – | | 116,261 | | 110,299 | | 844 | | – | | 111,143 | | | Low | 43,689 | | 5,138 | | – | | 48,827 | | 50,148 | | 3,051 | | – | | 53,199 | | | Medium | 6,360 | | 4,925 | | – | | 11,285 | | 7,048 | | 6,713 | | – | | 13,761 | | | High | 303 | | 3,349 | | – | | 3,652 | | 240 | | 3,032 | | – | | 3,272 | | Not rated (3) | 12,186 | | 560 | | – | | 12,746 | | 12,802 | | 952 | | – | | 13,754 | | | Impaired | – | | – | | 1,045 | | 1,045 | | – | | – | | 903 | | 903 | | | Gross residential mortgages | 178,333 | | 14,438 | | 1,045 | | 193,816 | | 180,538 | | 14,592 | | 903 | | 196,033 | | | ACL | 49 | | 150 | | 22 | | 221 | | 56 | | 178 | | 12 | | 246 | | | Carrying amount | 178,284 | | 14,288 | | 1,023 | | 193,595 | | 180,482 | | 14,414 | | 891 | | 195,787 | | | Loans: Consumer instalment and other personal | | | | | | | | | | Exceptionally low | 9,242 | | 2 | | – | | 9,244 | | 9,984 | | 1 | | – | | 9,985 | | | Very low | 40,470 | | 659 | | – | | 41,129 | | 21,962 | | 35 | | – | | 21,997 | | | Low | 7,664 | | 1,869 | | – | | 9,533 | | 26,238 | | 2,682 | | – | | 28,920 | | | Medium | 6,801 | | 6,213 | | – | | 13,014 | | 6,991 | | 5,566 | | – | | 12,557 | | | High | 735 | | 2,566 | | – | | 3,301 | | 670 | | 2,164 | | – | | 2,834 | | Not rated (3) | 14,203 | | 1,341 | | – | | 15,544 | | 14,812 | | 1,009 | | – | | 15,821 | | | Impaired | – | | – | | 615 | | 615 | | – | | – | | 627 | | 627 | | | Gross consumer instalment and other personal | 79,115 | | 12,650 | | 615 | | 92,380 | | 80,657 | | 11,457 | | 627 | | 92,741 | | | ACL | 183 | | 569 | | 162 | | 914 | | 182 | | 532 | | 160 | | 874 | | | Carrying amount | 78,932 | | 12,081 | | 453 | | 91,466 | | 80,475 | | 10,925 | | 467 | | 91,867 | | Loans: Credit cards (4) | | | | | | | | | | Exceptionally low | 1,653 | | – | | – | | 1,653 | | 1,643 | | – | | – | | 1,643 | | | Very low | 2,018 | | 15 | | – | | 2,033 | | 2,129 | | 4 | | – | | 2,133 | | | Low | 1,714 | | 71 | | – | | 1,785 | | 1,846 | | 80 | | – | | 1,926 | | | Medium | 3,331 | | 834 | | – | | 4,165 | | 3,550 | | 1,191 | | – | | 4,741 | | | High | 961 | | 1,029 | | – | | 1,990 | | 592 | | 1,232 | | – | | 1,824 | | Not rated (3) | 268 | | 92 | | – | | 360 | | 260 | | 122 | | – | | 382 | | | Impaired | – | | – | | – | | – | | – | | – | | – | | – | | | Gross credit cards | 9,945 | | 2,041 | | – | | 11,986 | | 10,020 | | 2,629 | | – | | 12,649 | | | ACL | 145 | | 506 | | – | | 651 | | 125 | | 527 | | – | | 652 | | | Carrying amount | 9,800 | | 1,535 | | – | | 11,335 | | 9,895 | | 2,102 | | – | | 11,997 | | Loans: Business and government (2) (5) | | | | | | | | | | Acceptable | | | | | | | | | | Investment grade | 200,205 | | 4,328 | | – | | 204,533 | | 188,707 | | 3,873 | | – | | 192,580 | | | Sub-investment grade | 127,073 | | 31,111 | | – | | 158,184 | | 139,069 | | 22,700 | | – | | 161,769 | | | Watchlist | 120 | | 18,711 | | – | | 18,831 | | 123 | | 21,466 | | – | | 21,589 | | | Impaired | – | | – | | 5,279 | | 5,279 | | – | | – | | 5,561 | | 5,561 | | | Gross business and government | 327,398 | | 54,150 | | 5,279 | | 386,827 | | 327,899 | | 48,039 | | 5,561 | | 381,499 | | | ACL | 691 | | 1,670 | | 917 | | 3,278 | | 756 | | 1,720 | | 802 | | 3,278 | | | Carrying amount | 326,707 | | 52,480 | | 4,362 | | 383,549 | | 327,143 | | 46,319 | | 4,759 | | 378,221 | | | Total gross loans and acceptances | 594,791 | | 83,279 | | 6,939 | | 685,009 | | 599,114 | | 76,717 | | 7,091 | | 682,922 | | | Total net loans and acceptances | 593,723 | | 80,384 | | 5,838 | | 679,945 | | 597,995 | | 73,760 | | 6,117 | | 677,872 | | | Commitments and financial guarantee contracts | | | | | | | | | | Acceptable | | | | | | | | | | Investment grade | 208,897 | | 4,907 | | – | | 213,804 | | 202,913 | | 1,544 | | – | | 204,457 | | | Sub-investment grade | 55,164 | | 18,491 | | – | | 73,655 | | 65,393 | | 13,733 | | – | | 79,126 | | | Watchlist | 10 | | 7,275 | | – | | 7,285 | | 6 | | 9,086 | | – | | 9,092 | | | Impaired | – | | – | | 1,783 | | 1,783 | | – | | – | | 1,660 | | 1,660 | | | Gross commitments and financial guarantee contracts | 264,071 | | 30,673 | | 1,783 | | 296,527 | | 268,312 | | 24,363 | | 1,660 | | 294,335 | | | ACL | 310 | | 364 | | 60 | | 734 | | 256 | | 377 | | 56 | | 689 | | Carrying amount (6) (7) | $ | 263,761 | | $ | 30,309 | | $ | 1,723 | | $ | 295,793 | | $ | 268,056 | | $ | 23,986 | | $ | 1,604 | | $ | 293,646 | |
(1)Includes PCI loans. (2)Includes $68 million ($79 million as at October 31, 2025) of residential mortgages and $12,823 million ($13,231 million as at October 31, 2025) of business and government loans that are classified and measured at FVTPL, and not subject to ECL. (3)Includes purchased portfolios and certain cases where an internal risk rating is not assigned. Alternative credit risk assessments, rating methodologies, policies and tools are used to manage credit risk for these portfolios. (4)Credit card loans are immediately written off when principal or interest payments are 180 days past due, and as a result are not reported as impaired in Stage 3. (5)Includes customers’ liability under acceptances. (6)Represents the total contractual amounts of undrawn credit facilities and other off-balance sheet exposures, excluding personal lines of credit and credit cards, which are unconditionally cancellable at our discretion. (7)Certain commercial borrower commitments are conditional and may include recourse to counterparties. Loans Past Due Not Impaired Loans that are past due but not classified as impaired are loans where our customers have failed to make payments when contractually due but for which we expect the full amount of principal and interest payments to be collected. The following table presents loans that are past due but not classified as impaired as at April 30, 2026 and October 31, 2025. Loans for which payment is less than 30 days past due are excluded as they are not generally representative of the borrower’s ability to meet their payment obligations. | | | | | | | | | | | | | | | | | | | | | | (Canadian $ in millions) | April 30, 2026 | October 31, 2025 | | 30 to 89 days | 90 days or more (1) | Total | 30 to 89 days | 90 days or more (1) | Total | | Residential mortgages | $ | 818 | | $ | 13 | | $ | 831 | | $ | 854 | | $ | 7 | | $ | 861 | | | Credit cards, consumer instalment and other personal | 689 | | 166 | | 855 | | 661 | | 171 | | 832 | | | Business and government | 387 | | 12 | | 399 | | 616 | | 8 | | 624 | | | Total | $ | 1,894 | | $ | 191 | | $ | 2,085 | | $ | 2,131 | | $ | 186 | | $ | 2,317 | |
(1) Fully secured loans with amounts over 90 days past due that we have not classified as impaired totalled $13 million as at April 30, 2026 ($7 million as at October 31, 2025). ECL Sensitivity and Key Economic Variables The ECL model requires the recognition of credit losses generally based on 12 months of expected losses for performing loans and the recognition of lifetime losses on performing loans that have experienced a significant increase in credit risk since origination. The allowance for performing loans is sensitive to changes in both economic forecasts and the probability weight assigned to each forecast scenario. Many of the factors have a high degree of interdependency, although there is no single factor to which loan loss allowances as a whole are sensitive. The upside scenario as at April 30, 2026 assumes a stronger economic environment than the base case forecast, with lower unemployment rates. As at April 30, 2026, our base case scenario depicts a moderate economic recovery over the medium term as trade policy and geopolitical uncertainty diminishes and interest rates decline further in the U.S. Our base case forecast as at October 31, 2025 broadly depicted a weaker economic environment. If we assumed a 100% weight on the base case forecast and included the impact of loan migration by restaging, with other assumptions held constant, including the application of experienced credit judgment, the allowance on performing loans would be approximately $3,225 million as at April 30, 2026 ($3,125 million as at October 31, 2025), compared to the reported allowance for performing loans of $4,637 million ($4,709 million as at October 31, 2025). As at April 30, 2026, our downside scenario involves a sharp contraction in the Canadian and U.S. economies in the near term, followed by a relatively slow recovery. Our severe downside scenario depicts an even deeper contraction in the Canadian and U.S. economies than in the downside scenario. The severe downside scenario as at October 31, 2025 broadly depicted a similar economic environment over the projection period. If we assumed a 100% weight on the severe downside forecast and included the impact of loan migration by restaging, with other assumptions held constant, including the application of experienced credit judgment, the allowance on performing loans would be approximately $8,025 million as at April 30, 2026 ($7,975 million as at October 31, 2025), compared to the reported allowance for performing loans of $4,637 million ($4,709 million as at October 31, 2025). Actual results will differ as our portfolio will change through time due to migration, growth, changes in geopolitical risks, risk mitigation actions and other factors. In addition, our allowance will reflect the four economic scenarios used in assessing the allowance, with often unequal weightings attached to each scenario, which can change through time.
The following tables show the key economic variables used to estimate the allowance for performing loans forecast over the next 12 months or lifetime measurement period. The variables as at April 30, 2026 include the impact of tariffs, trade policy uncertainty, and higher oil prices arising from the Iran conflict on the economic outlook. While the values disclosed below are national variables, we use regional variables in the underlying models and consider factors impacting particular industries where appropriate. | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at April 30, 2026 | | Scenarios | | All figures are average annual values | Upside | Base | Downside | Severe downside | | First 12 | Remaining | First 12 | Remaining | First 12 | Remaining | First 12 | Remaining | | months | horizon (1) | months | horizon (1) | months | horizon (1) | months | horizon (1) | Real GDP growth rates (2) | | | | | | | | | | Canada | 4.3% | 2.9% | 1.5% | 2.1% | (2.6)% | 1.6% | (3.9)% | 1.2% | | United States | 4.3% | 2.4% | 1.9% | 1.9% | (2.4)% | 1.4% | (3.5)% | 1.3% | | Corporate BBB 10-year spread | | | | | | | | | | Canada | 1.2% | 1.8% | 1.8% | 2.0% | 3.5% | 3.0% | 4.2% | 3.5% | | United States | 0.9% | 1.5% | 1.6% | 1.9% | 3.6% | 3.0% | 4.6% | 3.6% | | Unemployment rates | | | | | | | | | | Canada | 5.5% | 5.0% | 6.7% | 6.2% | 9.4% | 9.6% | 9.9% | 10.5% | | United States | 3.9% | 3.5% | 4.5% | 4.2% | 7.0% | 7.6% | 7.8% | 8.7% | Housing Price Index (2) | | | | | | | | | Canada (3) | 1.5% | 5.2% | (2.8)% | 2.8% | (11.3)% | (1.2)% | (20.6)% | (5.0)% | United States (4) | 5.4% | 4.0% | 2.3% | 2.5% | (2.2)% | (11.0)% | (4.8)% | (17.8)% |
(1)The remaining forecast period is two years. (2)Real gross domestic product (GDP) and housing price index are averages of quarterly year-over-year growth rates. (3)In Canada, we use the Housing Price Index Benchmark Composite. (4)In the United States, we use the National Case-Shiller House Price Index. | | | | | | | | | | | | | | | | | | | | | | | | | | | | As at October 31, 2025 | | Scenarios | | All figures are average annual values | Upside | Base | Downside | Severe downside | | First 12 | Remaining | First 12 | Remaining | First 12 | Remaining | First 12 | Remaining | | months | horizon (1) | months | horizon (1) | months | horizon (1) | months | horizon (1) | Real GDP growth rates (2) | | | | | | | | | | Canada | 3.6% | 2.8% | 1.1% | 2.1% | (2.7)% | 1.6% | (4.0)% | 1.2% | | United States | 4.5% | 2.4% | 1.7% | 1.8% | (2.3)% | 1.4% | (3.5)% | 1.3% | | Corporate BBB 10-year spread | | | | | | | | | | Canada | 1.2% | 1.8% | 1.7% | 2.0% | 3.4% | 3.0% | 4.2% | 3.5% | | United States | 0.8% | 1.5% | 1.5% | 1.9% | 3.5% | 3.0% | 4.6% | 3.6% | | Unemployment rates | | | | | | | | | | Canada | 6.0% | 5.5% | 7.1% | 6.4% | 9.4% | 9.6% | 9.9% | 10.5% | | United States | 3.6% | 3.1% | 4.5% | 4.4% | 6.8% | 7.5% | 7.5% | 8.4% | Housing Price Index (2) | | | | | | | | | Canada (3) | 3.9% | 5.8% | (0.4)% | 3.4% | (10.5)% | (0.7)% | (19.4)% | (5.0)% | United States (4) | 3.7% | 3.9% | 0.7% | 2.4% | (11.6)% | (1.1)% | (20.0)% | (4.3)% |
(1)The remaining forecast period is two years. (2)Real gross domestic product (GDP) and housing price index are averages of quarterly year-over-year growth rates. (3)In Canada, we use the Housing Price Index Benchmark Composite. (4)In the United States, we use the National Case-Shiller House Price Index.
The ECL approach requires the recognition of credit losses generally based on 12 months of expected losses for performing loans (Stage 1) and the recognition of lifetime expected losses for performing loans that have experienced a significant increase in credit risk since origination (Stage 2). Under our current probability-weighted scenarios, if all of our performing loans were in Stage 1, our models would generate an allowance for performing loans of approximately $3,500 million ($3,375 million as at October 31, 2025), compared to the reported allowance for performing loans of $4,637 million ($4,709 million as at October 31, 2025).
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