v3.26.1
Loans, Impaired Loans, and Allowance for Credit Losses (Tables)
6 Months Ended
Apr. 30, 2026
Disclosure of Financial Instruments [Abstract]  
Summary of Banks Loans
The following table provides details regarding
 
the Bank’s loans as at April 30, 2026 and October
 
31, 2025.
Loans
 
(millions of Canadian dollars)
As at
April 30, 2026
October 31, 2025
Residential mortgages
$
299,994
$
315,063
Consumer instalment and other personal
274,675
259,033
Credit card
40,802
41,662
Business and government
357,237
345,943
 
972,708
961,701
Loans at FVOCI
1
393
288
Total loans
973,101
961,989
Total allowance for loan losses
8,419
8,689
Total loans, net of allowance
$
964,682
$
953,300
Included in Financial assets at fair value through other comprehensive income on the Interim Consolidated Balance
 
Sheet.
Summary of Credit Quality
Business and government loans and loans
 
at FVOCI are grouped together as reflected
 
below for presentation in the “Loans by
 
Risk Ratings” table.
Loans – Business and Government
 
(millions of Canadian dollars)
As at
April 30, 2026
October 31, 2025
Loans at amortized cost
$
357,237
$
345,943
Loans at FVOCI
1
393
288
Loans
357,630
346,231
Allowance for loan losses
3,577
3,847
Loans, net of allowance
$
354,053
$
342,384
Included in Financial assets at fair value through other comprehensive income on the Interim Consolidated Balance
 
Sheet.
Summary of Gross Carrying Amounts of Loans, Acceptances and Credit Risk Exposures on Loan Commitments and Financial Guarantee Contracts by Internal Risk Ratings
The following table provides the gross carrying
 
amounts of loans and credit risk exposures
 
on loan commitments and financial guarantee
 
contracts by internal risk
rating for credit risk management purposes,
 
presenting separately those that are
 
subject to Stage 1, Stage 2, and Stage 3
 
allowances.
Loans by Risk Rating
 
 
(millions of Canadian dollars)
As at
April 30, 2026
October 31, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Residential mortgages
1,2,3
Low Risk
$
203,804
$
893
$
n/a
$
204,697
$
221,168
$
765
$
n/a
$
221,933
Normal Risk
69,586
9,952
n/a
79,538
70,217
8,391
n/a
78,608
Medium Risk
527
10,047
n/a
10,574
351
9,490
n/a
9,841
High Risk
374
3,786
344
4,504
3
3,700
391
4,094
Default
n/a
n/a
681
681
n/a
n/a
587
587
Total loans
274,291
24,678
1,025
299,994
291,739
22,346
978
315,063
Allowance for loan losses
101
223
96
420
102
175
80
357
Loans, net of allowance
274,190
24,455
929
299,574
291,637
22,171
898
314,706
Consumer instalment and other personal
4
 
 
Low Risk
119,366
2,558
n/a
121,924
110,513
2,588
n/a
113,101
Normal Risk
84,273
16,071
n/a
100,344
75,881
19,812
n/a
95,693
Medium Risk
30,455
7,199
n/a
37,654
29,757
6,792
n/a
36,549
High Risk
6,045
7,571
475
14,091
5,407
7,209
448
13,064
Default
n/a
n/a
662
662
n/a
n/a
626
626
Total loans
240,139
33,399
1,137
274,675
221,558
36,401
1,074
259,033
Allowance for loan losses
697
1,171
275
2,143
699
1,220
274
2,193
Loans, net of allowance
239,442
32,228
862
272,532
220,859
35,181
800
256,840
Credit card
 
 
 
Low Risk
6,372
4
n/a
6,376
8,011
4
n/a
8,015
Normal Risk
12,024
108
n/a
12,132
12,222
119
n/a
12,341
Medium Risk
13,264
899
n/a
14,163
12,780
902
n/a
13,682
High Risk
2,913
4,665
388
7,966
2,727
4,329
419
7,475
Default
n/a
n/a
165
165
n/a
n/a
149
149
Total loans
34,573
5,676
553
40,802
35,740
5,354
568
41,662
Allowance for loan losses
738
1,093
448
2,279
743
1,089
460
2,292
Loans, net of allowance
33,835
4,583
105
38,523
34,997
4,265
108
39,370
Business and government
1,2,3,5
 
 
 
Investment grade or Low/Normal Risk
147,440
164
n/a
147,604
139,518
152
n/a
139,670
Non-investment grade or Medium Risk
180,474
12,222
n/a
192,696
173,836
13,289
n/a
187,125
Watch and classified or High Risk
670
14,094
112
14,876
538
16,098
77
16,713
Default
n/a
n/a
2,454
2,454
n/a
n/a
2,723
2,723
Total loans
328,584
26,480
2,566
357,630
313,892
29,539
2,800
346,231
Allowance for loan losses
1,200
1,666
711
3,577
1,195
1,878
774
3,847
Loans, net of allowance
327,384
24,814
1,855
354,053
312,697
27,661
2,026
342,384
Total loans
877,587
90,233
5,281
973,101
862,929
93,640
5,420
961,989
Total allowance for loan losses
2,736
4,153
1,530
8,419
2,739
4,362
1,588
8,689
Total loans, net of allowance
$
874,851
$
86,080
$
3,751
$
964,682
$
860,190
$
89,278
$
3,832
$
953,300
Includes impaired loans with a balance of $
230
 
million (October 31, 2025 – $
273
 
million) which did not have a related allowance for loan losses as the realizable value of the collateral
exceeded the loan amount.
Excludes trading loans and non-trading loans at fair value through profit or loss (FVTPL) with a fair value of $
31
 
billion (October 31, 2025 – $
30
 
billion) and $
0.8
 
billion (October 31, 2025
– $
0.3
 
billion), respectively.
Includes insured mortgages of $
67
 
billion (October 31, 2025 – $
69
 
billion).
4
 
Includes Canadian government-insured real estate personal loans of $
5
 
billion (October 31, 2025 – $
5
 
billion).
Includes loans guaranteed by government agencies of $
24
 
billion (October 31, 2025 – $
24
 
billion), which are primarily reported in Non-investment grade or a lower risk rating based on
the borrowers’ credit risk.
Loans by Risk Rating
(Continued)
 
– Off-Balance Sheet Credit Instruments
1
 
(millions of Canadian dollars)
As at
April 30, 2026
October 31, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Retail Exposures
2
 
 
 
Low Risk
$
305,100
$
1,331
$
n/a
$
306,431
$
318,759
$
1,464
$
n/a
$
320,223
Normal Risk
71,565
1,227
n/a
72,792
62,564
1,147
n/a
63,711
Medium Risk
17,272
1,155
n/a
18,427
16,381
1,295
n/a
17,676
High Risk
1,422
1,203
2,625
1,282
1,092
2,374
Default
n/a
n/a
n/a
n/a
Non-Retail Exposures
3
Investment grade
326,904
n/a
326,904
319,274
n/a
319,274
Non-investment grade
104,133
5,558
n/a
109,691
103,936
5,710
n/a
109,646
Watch and classified
756
4,198
4,954
150
4,905
5,055
Default
n/a
n/a
274
274
n/a
n/a
343
343
Total off-balance sheet credit
instruments
827,152
14,672
274
842,098
822,346
15,613
343
838,302
Allowance for off-balance sheet credit
 
instruments
472
553
5
1,030
470
566
16
1,052
Total off-balance sheet credit
instruments, net of allowance
$
826,680
$
14,119
$
269
$
841,068
$
821,876
$
15,047
$
327
$
837,250
Excludes mortgage commitments.
2
 
Includes $
397
 
billion (October 31, 2025 – $
401
 
billion) of personal lines of credit and credit card lines, which are unconditionally cancellable at the Bank’s
 
discretion at any time.
3
 
Includes $
68
 
billion (October 31, 2025 – $
67
 
billion) of the undrawn component of uncommitted credit and liquidity facilities.
Summary of Allowance for Credit Losses
The following table provides details on
 
the Bank’s allowance for credit losses as at and
 
for the three and six months ended April 30,
 
2026
 
and April 30,
 
2025,
including allowance for off-balance sheet instruments
 
in the applicable categories.
Allowance for Credit Losses
(millions of Canadian dollars)
Foreign
Foreign
 
 
 
exchange,
 
 
 
 
exchange,
 
Balance at
Provision
 
Write-offs,
disposals,
Balance
Balance at
Provision
 
Write-offs,
disposals,
Balance
beginning
for credit
net of
and other
at end of
beginning
for credit
net of
and other
at end of
of period
losses
recoveries
adjustments
period
of period
losses
recoveries
adjustments
period
 
For the three months ended
April 30, 2026
April 30, 2025
Residential mortgages
$
383
$
38
$
(1)
$
$
420
$
368
$
(14)
$
$
(6)
$
348
Consumer instalment and other
personal
2,207
327
(318)
(1)
2,215
2,189
380
(307)
(41)
2,221
Credit card
2,796
396
(411)
2
2,783
2,797
451
(435)
(97)
2,716
Business and government
4,211
239
(394)
(25)
4,031
4,240
523
(360)
(104)
4,299
Total allowance for loan losses,
including off-balance sheet
instruments
9,597
1,000
(1,124)
(24)
9,449
9,594
1,340
(1,102)
(248)
9,584
Debt securities at amortized cost
2
2
3
3
Debt securities at FVOCI
2
1
3
1
1
2
Total allowance for credit
losses on debt securities
4
1
5
4
1
5
Total allowance for credit losses
$
9,601
$
1,001
$
(1,124)
$
(24)
$
9,454
$
9,598
$
1,341
$
(1,102)
$
(248)
$
9,589
Comprising:
Allowance for credit losses on
loans at amortized cost
$
8,566
 
 
 
$
8,419
$
8,654
 
 
 
$
8,613
Allowance for credit losses on
loans at FVOCI
1
1
Allowance for loan losses
8,567
8,419
8,655
8,613
Allowance for off-balance sheet
instruments
1,030
1,030
939
971
 
 
Allowance for credit losses on
 
debt securities
4
5
4
5
For the six months ended
April 30, 2026
April 30, 2025
Residential mortgages
$
357
$
69
$
(4)
$
(2)
$
420
$
365
$
(15)
$
(1)
$
(1)
$
348
Consumer instalment and other
personal
2,273
628
(661)
(25)
2,215
2,133
736
(641)
(7)
2,221
Credit card
2,790
879
(831)
(55)
2,783
2,699
901
(871)
(13)
2,716
Business and government
4,321
463
(630)
(123)
4,031
3,940
930
(546)
(25)
4,299
Total allowance for loan losses,
including off-balance sheet
instruments
9,741
2,039
(2,126)
(205)
9,449
9,137
2,552
(2,059)
(46)
9,584
Debt securities at amortized cost
2
2
3
3
Debt securities at FVOCI
2
1
3
1
1
2
Total allowance for credit
losses on debt securities
4
1
5
4
1
5
Total allowance for credit losses
$
9,745
$
2,040
$
(2,126)
$
(205)
$
9,454
$
9,141
$
2,553
$
(2,059)
$
(46)
$
9,589
Comprising:
Allowance for credit losses on
loans at amortized cost
$
8,689
 
 
 
$
8,419
$
8,094
 
 
 
$
8,613
Allowance for credit losses on
loans at FVOCI
Allowance for loan losses
8,689
8,419
8,094
8,613
Allowance for off-balance sheet
instruments
1,052
1,030
1,043
971
 
 
Allowance for credit losses on
 
debt securities
4
5
4
5
Summary of Allowance for Loan Losses
The following table provides details on
 
the Bank’s allowance for loan losses by stage as
 
at and for the three months ended April 30,
 
2026 and April 30, 2025.
Allowance for Loan Losses by Stage
(millions of Canadian dollars)
For the three months ended
April 30, 2026
April 30, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Residential Mortgages
Balance at beginning of period
$
103
$
194
$
86
$
383
$
114
$
181
$
73
$
368
Provision for credit losses
Transfer to Stage 1
1
23
(21)
(2)
22
(20)
(2)
Transfer to Stage 2
(13)
21
(8)
(7)
17
(10)
Transfer to Stage 3
(10)
10
(8)
8
Net remeasurement due to transfers into stage
2
(5)
4
(1)
(5)
4
(1)
New originations or purchases
3
5
n/a
n/a
5
5
n/a
n/a
5
Net repayments
4
(1)
(1)
(2)
(1)
(1)
(2)
Derecognition of financial assets (excluding
disposals and write-offs)
5
(1)
(5)
(9)
(15)
(5)
(6)
(7)
(18)
Changes to risk, parameters, and models
6
(10)
41
20
51
(15)
8
9
2
Disposals
Write-offs
(3)
(3)
(1)
(1)
Recoveries
2
2
1
1
Foreign exchange and other adjustments
(2)
(1)
(3)
(6)
Balance at end of period
$
101
$
223
$
96
$
420
$
106
$
174
$
68
$
348
Consumer Instalment and Other Personal
Balance, including off-balance sheet instruments,
at beginning of period
$
721
$
1,211
$
275
$
2,207
$
683
$
1,224
$
282
$
2,189
Provision for credit losses
Transfer to Stage 1
1
186
(184)
(2)
139
(137)
(2)
Transfer to Stage 2
(65)
87
(22)
(60)
85
(25)
Transfer to Stage 3
(3)
(79)
82
(2)
(76)
78
Net remeasurement due to transfers into stage
2
(82)
72
3
(7)
(61)
72
2
13
New originations or purchases
3
81
n/a
n/a
81
76
n/a
n/a
76
Net repayments
4
(23)
(28)
(4)
(55)
(20)
(29)
(4)
(53)
Derecognition of financial assets (excluding
disposals and write-offs)
5
(23)
(26)
(11)
(60)
(21)
(27)
(10)
(58)
Changes to risk, parameters, and models
6
(72)
168
272
368
(46)
179
269
402
Disposals
Write-offs
(401)
(401)
(399)
(399)
Recoveries
83
83
92
92
Foreign exchange and other adjustments
(1)
(1)
(15)
(21)
(5)
(41)
Balance, including off-balance sheet instruments,
at end of period
720
1,220
275
2,215
673
1,270
278
2,221
Less: Allowance for off-balance sheet instruments
7
23
49
72
24
52
76
Balance at end of period
$
697
$
1,171
$
275
$
2,143
$
649
$
1,218
$
278
$
2,145
Credit Card
8
Balance, including off-balance sheet instruments,
at beginning of period
$
950
$
1,395
$
451
$
2,796
$
927
$
1,372
$
498
$
2,797
Provision for credit losses
Transfer to Stage 1
1
252
(243)
(9)
235
(224)
(11)
Transfer to Stage 2
(92)
116
(24)
(82)
105
(23)
Transfer to Stage 3
(7)
(271)
278
(6)
(286)
292
Net remeasurement due to transfers into stage
2
(101)
128
7
34
(78)
113
6
41
New originations or purchases
3
48
n/a
n/a
48
38
n/a
n/a
38
Net repayments
4
(10)
(3)
17
4
(12)
(1)
20
7
Derecognition of financial assets (excluding
disposals and write-offs)
5
(12)
(27)
(106)
(145)
(9)
(21)
(104)
(134)
Changes to risk, parameters, and models
6
(87)
298
244
455
(28)
302
225
499
Disposals
Write-offs
(529)
(529)
(532)
(532)
Recoveries
118
118
97
97
Foreign exchange and other adjustments
1
1
2
(32)
(46)
(19)
(97)
Balance, including off-balance sheet instruments,
at end of period
941
1,394
448
2,783
953
1,314
449
2,716
Less: Allowance for off-balance sheet instruments
7
203
301
504
210
289
499
Balance at end of period
$
738
$
1,093
$
448
$
2,279
$
743
$
1,025
$
449
$
2,217
Transfers represent stage transfer movements prior to ECL remeasurement.
 
2
 
Represents the mechanical remeasurement between twelve-month (i.e., Stage 1) and lifetime ECLs (i.e., Stage 2
 
or 3) due to stage transfers necessitated by credit risk migration, as
described in the “Significant Increase in Credit Risk” section of Note 2 and Note 3 of the Bank’s 2025
 
Annual Consolidated Financial Statements, holding all other factors impacting the
change in ECLs constant.
 
3
 
Represents the increase in the allowance resulting from loans that were newly originated, purchased, or renewed.
4
 
Represents the changes in the allowance related to cash flow changes associated with new draws or repayments
 
on loans outstanding.
 
5
 
Represents the decrease in the allowance resulting from loans that were fully repaid and excludes the decrease
 
associated with loans that were disposed or fully written off.
6
 
Represents the changes in the allowance related to current period changes in risk (e.g.,
 
PD) caused by changes to macroeconomic factors, level of risk, parameters,
 
and/or models,
subsequent to stage migration. Refer to the “Measurement of Expected Credit Losses”, “Forward-Looking Information
 
 
and “Expert Credit Judgment”
 
sections of Note 2 and Note 3 of the
Bank’s 2025 Annual Consolidated Financial Statements for further details.
 
7
 
The allowance for loan losses for off-balance sheet instruments is recorded in Other liabilities on the Interim
 
Consolidated Balance Sheet.
8
 
Credit cards are considered impaired and migrate to Stage 3 when they are 90 days past due and written off
 
at 180 days past due. Refer to Note 2 of the Bank’s 2025 Annual
Consolidated Financial Statements for further details.
Allowance for Loan Losses by Stage
(Continued)
(millions of Canadian dollars)
For the three months ended
April 30, 2026
April 30, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Business and Government
Balance, including off-balance sheet instruments,
at beginning of period
$
1,418
$
1,905
$
888
$
4,211
$
1,272
$
1,997
$
971
$
4,240
Provision for credit losses
Transfer to Stage 1
1
81
(81)
66
(63)
(3)
Transfer to Stage 2
(145)
148
(3)
(161)
176
(15)
Transfer to Stage 3
(2)
(62)
64
(1)
(72)
73
Net remeasurement due to transfers into stage
1
(28)
34
2
8
(18)
45
27
New originations or purchases
1
376
n/a
n/a
376
314
n/a
n/a
314
Net repayments
1
(46)
(42)
(88)
(2)
(5)
(76)
(83)
Derecognition of financial assets (excluding
disposals and write-offs)
1
(205)
(194)
(186)
(585)
(160)
(199)
(46)
(405)
Changes to risk, parameters, and models
1
(43)
169
402
528
57
311
302
670
Disposals
(5)
(5)
Write-offs
(407)
(407)
(383)
(383)
Recoveries
13
13
23
23
Foreign exchange and other adjustments
(6)
(4)
(10)
(20)
(39)
(56)
(9)
(104)
Balance, including off-balance sheet instruments,
at end of period
1,446
1,869
716
4,031
1,328
2,134
837
4,299
Less: Allowance for off-balance sheet instruments
2
246
203
5
454
181
211
4
396
Balance at end of period
1,200
1,666
711
3,577
1,147
1,923
833
3,903
Total Allowance, including
 
off-balance sheet
 
instruments, at end of period
3,208
4,706
1,535
9,449
3,060
4,892
1,632
9,584
Less: Total Allowance for
 
off-balance sheet
 
instruments
2
472
553
5
1,030
415
552
4
971
Total Allowance for Loan Losses
 
at end of period
$
2,736
$
4,153
$
1,530
$
8,419
$
2,645
$
4,340
$
1,628
$
8,613
For explanations regarding this line item, refer to the “Allowance for Loan Losses by Stage” table on the previous
 
page in this Note.
2
 
The allowance for loan losses for off-balance sheet instruments is recorded in Other liabilities on the Interim
 
Consolidated Balance Sheet.
The following table provides details on
 
the Bank’s allowance for loan losses by stage as
 
at and for the six months ended April 30, 2026
 
and April 30, 2025.
Allowance for Loan Losses by Stage
(millions of Canadian dollars)
For the six months ended
April 30, 2026
April 30, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Residential Mortgages
Balance at beginning of period
$
102
$
175
$
80
$
357
$
116
$
189
$
60
$
365
Provision for credit losses
Transfer to Stage 1
1
47
(44)
(3)
57
(54)
(3)
Transfer to Stage 2
(21)
36
(15)
(13)
28
(15)
Transfer to Stage 3
(20)
20
(19)
19
Net remeasurement due to transfers into stage
2
(11)
9
(2)
(12)
8
(4)
New originations or purchases
3
11
n/a
n/a
11
12
n/a
n/a
12
Net repayments
4
(2)
(2)
(4)
(2)
(2)
(4)
Derecognition of financial assets (excluding
disposals and write-offs)
5
(2)
(10)
(18)
(30)
(9)
(10)
(13)
(32)
Changes to risk, parameters, and models
6
(22)
79
37
94
(43)
34
22
13
Disposals
Write-offs
(7)
(7)
(2)
(2)
Recoveries
3
3
1
1
Foreign exchange and other adjustments
(1)
(1)
(2)
(1)
(1)
Balance at end of period
$
101
$
223
$
96
$
420
$
106
$
174
$
68
$
348
Consumer Instalment and Other Personal
Balance, including off-balance sheet instruments,
at beginning of period
$
724
$
1,275
$
274
$
2,273
$
696
$
1,175
$
262
$
2,133
Provision for credit losses
Transfer to Stage 1
1
388
(385)
(3)
324
(321)
(3)
Transfer to Stage 2
(125)
167
(42)
(124)
172
(48)
Transfer to Stage 3
(6)
(157)
163
(5)
(149)
154
Net remeasurement due to transfers into stage
2
(166)
142
6
(18)
(143)
148
4
9
New originations or purchases
3
173
n/a
n/a
173
160
n/a
n/a
160
Net repayments
4
(46)
(54)
(9)
(109)
(42)
(54)
(8)
(104)
Derecognition of financial assets (excluding
disposals and write-offs)
5
(45)
(55)
(24)
(124)
(42)
(57)
(20)
(119)
Changes to risk, parameters, and models
6
(168)
300
574
706
(148)
360
578
790
Disposals
Write-offs
(822)
(822)
(811)
(811)
Recoveries
161
161
170
170
Foreign exchange and other adjustments
(9)
(13)
(3)
(25)
(3)
(4)
(7)
Balance, including off-balance sheet instruments,
at end of period
720
1,220
275
2,215
673
1,270
278
2,221
Less: Allowance for off-balance sheet instruments
7
23
49
72
24
52
76
Balance at end of period
$
697
$
1,171
$
275
$
2,143
$
649
$
1,218
$
278
$
2,145
Credit Card
8
Balance, including off-balance sheet instruments,
at beginning of period
$
944
$
1,386
$
460
$
2,790
$
947
$
1,374
$
378
$
2,699
Provision for credit losses
Transfer to Stage 1
1
533
(514)
(19)
720
(698)
(22)
Transfer to Stage 2
(183)
232
(49)
(168)
212
(44)
Transfer to Stage 3
(16)
(544)
560
(11)
(528)
539
Net remeasurement due to transfers into stage
2
(210)
250
16
56
(300)
225
13
(62)
New originations or purchases
3
96
n/a
n/a
96
74
n/a
n/a
74
Net repayments
4
5
34
39
6
3
38
47
Derecognition of financial assets (excluding
disposals and write-offs)
5
(23)
(56)
(223)
(302)
(36)
(43)
(179)
(258)
Changes to risk, parameters, and models
6
(185)
663
512
990
(275)
775
600
1,100
Disposals
Write-offs
(1,058)
(1,058)
(1,061)
(1,061)
Recoveries
227
227
190
190
Foreign exchange and other adjustments
(20)
(23)
(12)
(55)
(4)
(6)
(3)
(13)
Balance, including off-balance sheet instruments,
at end of period
941
1,394
448
2,783
953
1,314
449
2,716
Less: Allowance for off-balance sheet instruments
7
203
301
504
210
289
499
Balance at end of period
$
738
$
1,093
$
448
$
2,279
$
743
$
1,025
$
449
$
2,217
Transfers represent stage transfer movements prior to ECL remeasurement.
 
2
 
Represents the mechanical remeasurement between twelve-month (i.e., Stage 1) and lifetime ECLs (i.e., Stage 2
 
or 3) due to stage transfers necessitated by credit risk migration, as
described in the “Significant Increase in Credit Risk” section of Note 2 and Note 3 of the Bank’s 2025
 
Annual Consolidated Financial Statements, holding all other factors impacting the
change in ECLs constant.
 
3
 
Represents the increase in the allowance resulting from loans that were newly originated, purchased, or renewed.
4
 
Represents the changes in the allowance related to cash flow changes associated with new draws or repayments
 
on loans outstanding.
 
5
 
Represents the decrease in the allowance resulting from loans that were fully repaid and excludes the decrease
 
associated with loans that were disposed or fully written off.
6
 
Represents the changes in the allowance related to current period changes in risk (e.g.,
 
PD) caused by changes to macroeconomic factors, level of risk, parameters,
 
and/or models,
subsequent to stage migration. Refer to the “Measurement of Expected Credit Losses”, “Forward-Looking Information
 
 
and “Expert Credit Judgment”
 
sections of Note 2 and Note 3 of the
Bank’s 2025 Annual Consolidated Financial Statements for further details.
 
7
 
The allowance for loan losses for off-balance sheet instruments is recorded in Other liabilities on the Interim
 
Consolidated Balance Sheet.
8
 
Credit cards are considered impaired and migrate to Stage 3 when they are 90 days past due and written off
 
at 180 days past due. Refer to Note 2 of the Bank’s 2025 Annual
Consolidated Financial Statements for further details.
Allowance for Loan Losses by Stage
(Continued)
(millions of Canadian dollars)
For the six months ended
April 30, 2026
April 30, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Business and Government
Balance, including off-balance sheet instruments,
at beginning of period
$
1,439
$
2,092
$
790
$
4,321
$
1,150
$
1,937
$
853
$
3,940
Provision for credit losses
Transfer to Stage 1
1
174
(174)
154
(151)
(3)
Transfer to Stage 2
(283)
290
(7)
(314)
334
(20)
Transfer to Stage 3
(4)
(213)
217
(4)
(224)
228
Net remeasurement due to transfers into stage
1
(59)
79
1
21
(46)
103
1
58
New originations or purchases
1
795
n/a
n/a
795
614
n/a
n/a
614
Net repayments
1
7
(77)
(144)
(214)
15
(24)
(86)
(95)
Derecognition of financial assets (excluding
disposals and write-offs)
1
(472)
(449)
(288)
(1,209)
(329)
(395)
(122)
(846)
Changes to risk, parameters, and models
1
(135)
364
841
1,070
86
561
552
1,199
Disposals
(27)
(27)
(9)
(9)
Write-offs
(663)
(663)
(585)
(585)
Recoveries
33
33
39
39
Foreign exchange and other adjustments
(16)
(43)
(37)
(96)
2
(7)
(11)
(16)
Balance, including off-balance sheet instruments,
at end of period
1,446
1,869
716
4,031
1,328
2,134
837
4,299
Less: Allowance for off-balance sheet instruments
2
246
203
5
454
181
211
4
396
Balance at end of period
1,200
1,666
711
3,577
1,147
1,923
833
3,903
Total Allowance, including
 
off-balance sheet
 
instruments, at end of period
3,208
4,706
1,535
9,449
3,060
4,892
1,632
9,584
Less: Total Allowance for
 
off-balance sheet
 
instruments
2
472
553
5
1,030
415
552
4
971
Total Allowance for Loan Losses
 
at end of period
$
2,736
$
4,153
$
1,530
$
8,419
$
2,645
$
4,340
$
1,628
$
8,613
For explanations regarding this line item, refer to the “Allowance for Loan Losses by Stage” table on the previous
 
page in this Note.
2
 
The allowance for loan losses for off-balance sheet instruments is recorded in Other liabilities on the Interim
 
Consolidated Balance Sheet.
Summary of Macroeconomic Variables impacted in Determining ECLs
The following table sets out average values
 
of the macroeconomic variables over
 
the four
calendar quarters starting with the current
 
quarter, and the remaining 4-year forecast period for the base
 
forecast and upside and downside scenarios
 
used in
determining the Bank’s ECLs as at April 30, 2026.
 
As the forecast period increases, information
 
about the future becomes less readily
 
available and projections
are anchored on assumptions around structural
 
relationships between economic parameters
 
that are inherently much less certain.
 
The ongoing conflict in the
Middle East and resulting energy shock poses
 
a new headwind for the economic outlook
 
which comes on top of still-elevated trade
 
uncertainty. Accordingly, our
baseline forecast reflects some tempering
 
in economic growth and upward adjustment
 
to unemployment rates. Any further escalation
 
in trade tensions or a more
prolonged Middle East conflict that results in
 
persistently elevated energy prices would
 
pose a further downside risk to the economic
 
outlook. However, the Bank’s
Canadian and U.S. downside scenarios reflect
 
a recession and help capture these risks
 
accordingly through its allowance process.
Macroeconomic Variables
As at
April 30, 2026
Base Forecast
Upside Scenario
Downside Scenario
Average
Remaining
Average
Remaining
Average
Remaining
Q2 2026-
4-year
Q2 2026-
4-year
Q2 2026-
4-year
Q1 2027
1
period
1
Q1 2027
1
period
1
Q1 2027
1
period
1
 
Unemployment rate
Canada
6.6
%
6.0
%
6.1
%
5.6
%
7.6
%
7.2
%
United States
4.3
4.0
4.1
3.8
5.5
5.4
Real GDP
Canada
1.3
1.8
1.7
1.9
(0.7)
2.1
United States
2.3
2.0
2.6
2.4
(0.2)
2.5
Home prices
Canada (average existing price)
2
3.7
2.4
4.3
(6.3)
3.0
United States (CoreLogic HPI)
3
2.8
3.5
3.2
4.1
(6.1)
4.4
Central bank policy interest rate
Canada
2.25
2.25
2.50
2.50
1.13
1.42
United States
3.44
3.25
3.75
3.75
2.06
2.30
U.S. 10-year treasury yield
4.16
4.10
4.47
4.57
3.67
3.68
U.S. 10-year BBB spread (%-pts)
1.38
1.60
1.18
1.52
2.21
1.90
Exchange rate (U.S. dollar/Canadian dollar)
$
0.74
$
0.75
$
0.75
$
0.76
$
0.69
$
0.71
The numbers represent average values for the quoted periods and average of year-on-year growth for real GDP and home prices.
2
The average home price is the average transacted sale price of homes sold via the Multiple Listing Service; data is collected by the Canadian Real Estate Association.
3
The CoreLogic home price index (HPI) is a repeat-sales index which tracks increases and decreases in the same home’s sales price over time.
Schedule of Change from Base to Probability-Weighted ECL
The following table presents the base ECL
 
scenario compared to the probability-weighted ECLs,
 
with the latter derived from three ECL
 
scenarios for performing
loans and off-balance sheet instruments. The difference
 
reflects the impact of deriving multiple
 
scenarios around the base ECLs and resultant
 
change in ECLs due
to non-linearity and sensitivity to using
 
macroeconomic forecasts.
Change from Base to Probability-Weighted
 
ECLs
(millions of Canadian dollars, except
 
as noted)
As at
April 30, 2026
October 31, 2025
Probability-weighted ECLs
$
7,914
$
8,137
Base ECLs
7,375
7,737
Difference – in amount
$
539
$
400
Difference – in percentage
7.3
%
5.2
%
Schedule of Incremental Lifetime ECL Impact
The
following table shows the estimated impact
 
of staging on ECLs by presenting all performing
 
loans and off-balance sheet instruments calculated
 
using twelve-month
ECLs compared to the current aggregate probability-weighted
 
ECLs, holding all risk profiles constant.
Incremental Lifetime ECLs Impact
(millions of Canadian dollars)
 
As at
April 30, 2026
October 31, 2025
Probability-weighted ECLs
$
7,914
$
8,137
All performing loans and off-balance sheet instruments
 
using 12-month ECLs
6,232
6,435
Incremental lifetime ECLs impact
$
1,682
$
1,702
Summary of Loans Past Due but Not Impaired
The following table summarizes loans that are
 
past
due but not impaired.
 
Loans less than 31 days contractually past
 
due are excluded as they do not generally
 
reflect a borrower’s ability to meet
 
their payment
obligations.
Loans Past Due but not Impaired
1
(millions of Canadian dollars)
As at
April 30, 2026
October 31, 2025
 
31-60
61-89
31-60
61-89
 
days
days
Total
days
days
Total
Residential mortgages
 
$
408
$
178
$
586
$
407
$
129
$
536
Consumer instalment and other personal
855
295
1,150
930
301
1,231
Credit card
349
244
593
373
253
626
Business and government
186
134
320
247
85
332
Total
 
$
1,798
$
851
$
2,649
$
1,957
$
768
$
2,725
Includes loans that are measured at FVOCI.