| Summary of Continuity in Loss Allowance by Each Product Type |
The following tables show the continuity in the loss allowance by product type for the three and nine months ended July 31, 2026 and July 31, 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 | July 31, 2026 | July 31, 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 | $ | 49 | | $ | 150 | | $ | 22 | | $ | 221 | | $ | 67 | | $ | 194 | | $ | 18 | | $ | 279 | | | Transfer to Stage 1 | 8 | | (8) | | – | | – | | 36 | | (35) | | (1) | | – | | | Transfer to Stage 2 | (2) | | 13 | | (11) | | – | | (2) | | 11 | | (9) | | – | | | Transfer to Stage 3 | – | | (12) | | 12 | | – | | – | | (16) | | 16 | | – | | | Net remeasurement of loss allowance | (9) | | 7 | | 33 | | 31 | | (52) | | (9) | | 8 | | (53) | | | Loan originations | 5 | | – | | – | | 5 | | 8 | | – | | – | | 8 | | | Derecognitions and maturities | (3) | | (4) | | – | | (7) | | (2) | | (5) | | – | | (7) | | Model changes (2) | – | | – | | – | | – | | 23 | | 24 | | – | | 47 | | Total PCL (3) | (1) | | (4) | | 34 | | 29 | | 11 | | (30) | | 14 | | (5) | | Write-offs (4) | – | | – | | (4) | | (4) | | – | | – | | (2) | | (2) | | | Recoveries of previous write-offs | – | | – | | 1 | | 1 | | – | | – | | 2 | | 2 | | | Foreign exchange and other | – | | 1 | | (18) | | (17) | | 1 | | 1 | | (23) | | (21) | | | Balance as at end of period | $ | 48 | | $ | 147 | | $ | 35 | | $ | 230 | | $ | 79 | | $ | 165 | | $ | 9 | | $ | 253 | | | Loans: Consumer instalment and other personal | | | | | | | | | | Balance as at beginning of period | $ | 204 | | $ | 601 | | $ | 162 | | $ | 967 | | $ | 183 | | $ | 545 | | $ | 179 | | $ | 907 | | | Transfer to Stage 1 | 86 | | (82) | | (4) | | – | | 85 | | (79) | | (6) | | – | | | Transfer to Stage 2 | (13) | | 23 | | (10) | | – | | (14) | | 28 | | (14) | | – | | | Transfer to Stage 3 | (2) | | (50) | | 52 | | – | | (1) | | (45) | | 46 | | – | | | Net remeasurement of loss allowance | (78) | | 99 | | 96 | | 117 | | (90) | | 55 | | 121 | | 86 | | | Loan originations | 8 | | – | | – | | 8 | | 8 | | – | | – | | 8 | | | Derecognitions and maturities | (5) | | (11) | | – | | (16) | | (6) | | (10) | | – | | (16) | | Model changes (2) | – | | – | | – | | – | | 13 | | 47 | | – | | 60 | | Total PCL (3) | (4) | | (21) | | 134 | | 109 | | (5) | | (4) | | 147 | | 138 | | Write-offs (4) | – | | – | | (169) | | (169) | | – | | – | | (181) | | (181) | | | Recoveries of previous write-offs | – | | – | | 42 | | 42 | | – | | – | | 43 | | 43 | | | Foreign exchange and other | 3 | | 4 | | (13) | | (6) | | – | | – | | (23) | | (23) | | | Balance as at end of period | $ | 203 | | $ | 584 | | $ | 156 | | $ | 943 | | $ | 178 | | $ | 541 | | $ | 165 | | $ | 884 | | | Loans: Credit cards | | | | | | | | | | Balance as at beginning of period | $ | 217 | | $ | 570 | | $ | – | | $ | 787 | | $ | 217 | | $ | 508 | | $ | – | | $ | 725 | | | Transfer to Stage 1 | 68 | | (67) | | (1) | | – | | 61 | | (61) | | – | | – | | | Transfer to Stage 2 | (16) | | 16 | | – | | – | | (22) | | 22 | | – | | – | | | Transfer to Stage 3 | (2) | | (136) | | 138 | | – | | (2) | | (116) | | 118 | | – | | | Net remeasurement of loss allowance | (41) | | 215 | | 36 | | 210 | | (37) | | 203 | | 81 | | 247 | | | Loan originations | 12 | | – | | – | | 12 | | 11 | | – | | – | | 11 | | | Derecognitions and maturities | (3) | | (10) | | – | | (13) | | (4) | | (20) | | – | | (24) | | Model changes (2) | – | | – | | – | | – | | – | | – | | – | | – | | Total PCL (3) | 18 | | 18 | | 173 | | 209 | | 7 | | 28 | | 199 | | 234 | | Write-offs (4) | – | | – | | (203) | | (203) | | – | | – | | (234) | | (234) | | | Recoveries of previous write-offs | – | | – | | 49 | | 49 | | – | | – | | 55 | | 55 | | | Foreign exchange and other | 1 | | 1 | | (19) | | (17) | | (1) | | – | | (20) | | (21) | | | Balance as at end of period | $ | 236 | | $ | 589 | | $ | – | | $ | 825 | | $ | 223 | | $ | 536 | | $ | – | | $ | 759 | | | Loans: Business and government | | | | | | | | | | Balance as at beginning of period | $ | 908 | | $ | 1,938 | | $ | 977 | | $ | 3,823 | | $ | 902 | | $ | 2,022 | | $ | 781 | | $ | 3,705 | | | Transfer to Stage 1 | 111 | | (107) | | (4) | | – | | 154 | | (139) | | (15) | | – | | | Transfer to Stage 2 | (35) | | 43 | | (8) | | – | | (37) | | 41 | | (4) | | – | | | Transfer to Stage 3 | (2) | | (54) | | 56 | | – | | (2) | | (71) | | 73 | | – | | | Net remeasurement of loss allowance | (104) | | 197 | | 323 | | 416 | | (148) | | 283 | | 359 | | 494 | | | Loan originations | 107 | | – | | – | | 107 | | 73 | | – | | – | | 73 | | | Derecognitions and maturities | (34) | | (110) | | – | | (144) | | (39) | | (96) | | – | | (135) | | Model changes (2) | – | | – | | – | | – | | – | | – | | – | | – | | Total PCL (3) | 43 | | (31) | | 367 | | 379 | | 1 | | 18 | | 413 | | 432 | | Write-offs (4) | – | | – | | (307) | | (307) | | – | | – | | (259) | | (259) | | | Recoveries of previous write-offs | – | | – | | 81 | | 81 | | – | | – | | 80 | | 80 | | | Foreign exchange and other | 36 | | 61 | | (41) | | 56 | | (2) | | 20 | | (86) | | (68) | | | Balance as at end of period | $ | 987 | | $ | 1,968 | | $ | 1,077 | | $ | 4,032 | | $ | 901 | | $ | 2,060 | | $ | 929 | | $ | 3,890 | | | Total as at end of period | $ | 1,474 | | $ | 3,288 | | $ | 1,268 | | $ | 6,030 | | $ | 1,381 | | $ | 3,302 | | $ | 1,103 | | $ | 5,786 | | | Comprising: Loans | $ | 1,139 | | $ | 2,898 | | $ | 1,210 | | $ | 5,247 | | $ | 1,130 | | $ | 2,980 | | $ | 1,055 | | $ | 5,165 | | Other credit instruments (5) | 335 | | 390 | | 58 | | 783 | | 251 | | 322 | | 48 | | 621 | |
(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 $(4) million for the three months ended July 31, 2026 ($(2) million for the three months ended July 31, 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 nine months ended | July 31, 2026 | July 31, 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 | 92 | | (91) | | (1) | | – | | 118 | | (116) | | (2) | | – | | | Transfer to Stage 2 | (9) | | 53 | | (44) | | – | | (7) | | 25 | | (18) | | – | | | Transfer to Stage 3 | – | | (42) | | 42 | | – | | – | | (34) | | 34 | | – | | | Net remeasurement of loss allowance | (31) | | 52 | | 80 | | 101 | | (126) | | 92 | | 26 | | (8) | | | Loan originations | 11 | | – | | – | | 11 | | 18 | | – | | – | | 18 | | | Derecognitions and maturities | (6) | | (15) | | – | | (21) | | (3) | | (12) | | – | | (15) | | Model changes (2) | (64) | | 12 | | – | | (52) | | 23 | | 24 | | – | | 47 | | Total PCL (3) | (7) | | (31) | | 77 | | 39 | | 23 | | (21) | | 40 | | 42 | | Write-offs (4) | – | | – | | (10) | | (10) | | – | | – | | (7) | | (7) | | | Recoveries of previous write-offs | – | | – | | 6 | | 6 | | – | | – | | 6 | | 6 | | | Foreign exchange and other | (1) | | (1) | | (50) | | (52) | | – | | – | | (49) | | (49) | | | Balance as at end of period | $ | 48 | | $ | 147 | | $ | 35 | | $ | 230 | | $ | 79 | | $ | 165 | | $ | 9 | | $ | 253 | | | Loans: Consumer instalment and other personal | | | | | | | | | | Balance as at beginning of period | $ | 200 | | $ | 555 | | $ | 160 | | $ | 915 | | $ | 197 | | $ | 471 | | $ | 175 | | $ | 843 | | | Transfer to Stage 1 | 249 | | (238) | | (11) | | – | | 232 | | (216) | | (16) | | – | | | Transfer to Stage 2 | (45) | | 76 | | (31) | | – | | (42) | | 81 | | (39) | | – | | | Transfer to Stage 3 | (6) | | (144) | | 150 | | – | | (5) | | (130) | | 135 | | – | | | Net remeasurement of loss allowance | (196) | | 364 | | 351 | | 519 | | (225) | | 319 | | 367 | | 461 | | | Loan originations | 25 | | – | | – | | 25 | | 24 | | – | | – | | 24 | | | Derecognitions and maturities | (13) | | (31) | | – | | (44) | | (15) | | (29) | | – | | (44) | | Model changes (2) | (11) | | 2 | | – | | (9) | | 13 | | 47 | | – | | 60 | | Total PCL (3) | 3 | | 29 | | 459 | | 491 | | (18) | | 72 | | 447 | | 501 | | Write-offs (4) | – | | – | | (536) | | (536) | | – | | – | | (519) | | (519) | | | Recoveries of previous write-offs | – | | – | | 116 | | 116 | | – | | – | | 115 | | 115 | | | Foreign exchange and other | – | | – | | (43) | | (43) | | (1) | | (2) | | (53) | | (56) | | | Balance as at end of period | $ | 203 | | $ | 584 | | $ | 156 | | $ | 943 | | $ | 178 | | $ | 541 | | $ | 165 | | $ | 884 | | | Loans: Credit cards | | | | | | | | | | Balance as at beginning of period | $ | 188 | | $ | 603 | | $ | – | | $ | 791 | | $ | 233 | | $ | 472 | | $ | – | | $ | 705 | | | Transfer to Stage 1 | 271 | | (270) | | (1) | | – | | 185 | | (185) | | – | | – | | | Transfer to Stage 2 | (51) | | 52 | | (1) | | – | | (68) | | 68 | | – | | – | | | Transfer to Stage 3 | (5) | | (383) | | 388 | | – | | (6) | | (335) | | 341 | | – | | | Net remeasurement of loss allowance | (186) | | 620 | | 169 | | 603 | | (152) | | 567 | | 241 | | 656 | | | Loan originations | 31 | | – | | – | | 31 | | 44 | | – | | – | | 44 | | | Derecognitions and maturities | (9) | | (33) | | – | | (42) | | (10) | | (39) | | – | | (49) | | Model changes (2) | (4) | | – | | – | | (4) | | – | | – | | – | | – | | Total PCL (3) | 47 | | (14) | | 555 | | 588 | | (7) | | 76 | | 582 | | 651 | | Write-offs (4) | – | | – | | (630) | | (630) | | – | | – | | (687) | | (687) | | | Recoveries of previous write-offs | – | | – | | 135 | | 135 | | – | | – | | 164 | | 164 | | | Foreign exchange and other | 1 | | – | | (60) | | (59) | | (3) | | (12) | | (59) | | (74) | | | Balance as at end of period | $ | 236 | | $ | 589 | | $ | – | | $ | 825 | | $ | 223 | | $ | 536 | | $ | – | | $ | 759 | | | 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 | 435 | | (423) | | (12) | | – | | 406 | | (370) | | (36) | | – | | | Transfer to Stage 2 | (193) | | 285 | | (92) | | – | | (207) | | 279 | | (72) | | – | | | Transfer to Stage 3 | (5) | | (221) | | 226 | | – | | (6) | | (291) | | 297 | | – | | | Net remeasurement of loss allowance | (363) | | 186 | | 968 | | 791 | | (291) | | 989 | | 1,139 | | 1,837 | | | Loan originations | 264 | | – | | – | | 264 | | 219 | | – | | – | | 219 | | | Derecognitions and maturities | (101) | | (343) | | – | | (444) | | (107) | | (280) | | – | | (387) | | Model changes (2) | 10 | | 468 | | – | | 478 | | – | | – | | – | | – | | Total PCL (3) | 47 | | (48) | | 1,090 | | 1,089 | | 14 | | 327 | | 1,328 | | 1,669 | | Write-offs (4) | – | | – | | (887) | | (887) | | – | | – | | (883) | | (883) | | | Recoveries of previous write-offs | – | | – | | 192 | | 192 | | – | | – | | 234 | | 234 | | | Foreign exchange and other | 9 | | 19 | | (176) | | (148) | | (5) | | 35 | | (287) | | (257) | | | Balance as at end of period | $ | 987 | | $ | 1,968 | | $ | 1,077 | | $ | 4,032 | | $ | 901 | | $ | 2,060 | | $ | 929 | | $ | 3,890 | | | Total as at end of period | $ | 1,474 | | $ | 3,288 | | $ | 1,268 | | $ | 6,030 | | $ | 1,381 | | $ | 3,302 | | $ | 1,103 | | $ | 5,786 | | | Comprising: Loans | $ | 1,139 | | $ | 2,898 | | $ | 1,210 | | $ | 5,247 | | $ | 1,130 | | $ | 2,980 | | $ | 1,055 | | $ | 5,165 | | Other credit instruments (5) | 335 | | 390 | | 58 | | 783 | | 251 | | 322 | | 48 | | 621 | |
(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 $nil million for the nine months ended July 31, 2026 ($(1) million for the nine months ended July 31, 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.
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| Summary of Credit Risk Exposures for Loans Carried at Amortized Cost, FVOCI or FVTPL |
The following table sets out our credit risk exposure for all loans carried at amortized cost, FVOCI or FVTPL as at July 31, 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 | July 31, 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 | 116,655 | | 684 | | – | | 117,339 | | 110,299 | | 844 | | – | | 111,143 | | | Low | 44,788 | | 5,769 | | – | | 50,557 | | 50,148 | | 3,051 | | – | | 53,199 | | | Medium | 6,377 | | 5,020 | | – | | 11,397 | | 7,048 | | 6,713 | | – | | 13,761 | | | High | 287 | | 3,392 | | – | | 3,679 | | 240 | | 3,032 | | – | | 3,272 | | Not rated (3) | 12,272 | | 545 | | – | | 12,817 | | 12,802 | | 952 | | – | | 13,754 | | | Impaired | – | | – | | 1,135 | | 1,135 | | – | | – | | 903 | | 903 | | | Gross residential mortgages | 180,379 | | 15,410 | | 1,135 | | 196,924 | | 180,538 | | 14,592 | | 903 | | 196,033 | | | ACL | 48 | | 147 | | 35 | | 230 | | 56 | | 178 | | 12 | | 246 | | | Carrying amount | 180,331 | | 15,263 | | 1,100 | | 196,694 | | 180,482 | | 14,414 | | 891 | | 195,787 | | | Loans: Consumer instalment and other personal | | | | | | | | | | Exceptionally low | 10,523 | | 16 | | – | | 10,539 | | 9,984 | | 1 | | – | | 9,985 | | | Very low | 40,307 | | 1,049 | | – | | 41,356 | | 21,962 | | 35 | | – | | 21,997 | | | Low | 7,390 | | 1,840 | | – | | 9,230 | | 26,238 | | 2,682 | | – | | 28,920 | | | Medium | 6,530 | | 6,543 | | – | | 13,073 | | 6,991 | | 5,566 | | – | | 12,557 | | | High | 660 | | 2,450 | | – | | 3,110 | | 670 | | 2,164 | | – | | 2,834 | | Not rated (3) | 15,022 | | 1,325 | | – | | 16,347 | | 14,812 | | 1,009 | | – | | 15,821 | | | Impaired | – | | – | | 614 | | 614 | | – | | – | | 627 | | 627 | | | Gross consumer instalment and other personal | 80,432 | | 13,223 | | 614 | | 94,269 | | 80,657 | | 11,457 | | 627 | | 92,741 | | | ACL | 183 | | 552 | | 156 | | 891 | | 182 | | 532 | | 160 | | 874 | | | Carrying amount | 80,249 | | 12,671 | | 458 | | 93,378 | | 80,475 | | 10,925 | | 467 | | 91,867 | | Loans: Credit cards (4) | | | | | | | | | | Exceptionally low | 1,683 | | – | | – | | 1,683 | | 1,643 | | – | | – | | 1,643 | | | Very low | 2,091 | | 15 | | – | | 2,106 | | 2,129 | | 4 | | – | | 2,133 | | | Low | 1,786 | | 61 | | – | | 1,847 | | 1,846 | | 80 | | – | | 1,926 | | | Medium | 3,382 | | 802 | | – | | 4,184 | | 3,550 | | 1,191 | | – | | 4,741 | | | High | 867 | | 979 | | – | | 1,846 | | 592 | | 1,232 | | – | | 1,824 | | Not rated (3) | 286 | | 89 | | – | | 375 | | 260 | | 122 | | – | | 382 | | | Impaired | – | | – | | – | | – | | – | | – | | – | | – | | | Gross credit cards | 10,095 | | 1,946 | | – | | 12,041 | | 10,020 | | 2,629 | | – | | 12,649 | | | ACL | 158 | | 524 | | – | | 682 | | 125 | | 527 | | – | | 652 | | | Carrying amount | 9,937 | | 1,422 | | – | | 11,359 | | 9,895 | | 2,102 | | – | | 11,997 | | Loans: Business and government (2) (5) | | | | | | | | | | Acceptable | | | | | | | | | | Investment grade | 209,777 | | 5,315 | | – | | 215,092 | | 188,707 | | 3,873 | | – | | 192,580 | | | Sub-investment grade | 132,650 | | 29,375 | | – | | 162,025 | | 139,069 | | 22,700 | | – | | 161,769 | | | Watchlist | 109 | | 17,660 | | – | | 17,769 | | 123 | | 21,466 | | – | | 21,589 | | | Impaired | – | | – | | 5,054 | | 5,054 | | – | | – | | 5,561 | | 5,561 | | | Gross business and government | 342,536 | | 52,350 | | 5,054 | | 399,940 | | 327,899 | | 48,039 | | 5,561 | | 381,499 | | | ACL | 750 | | 1,675 | | 1,019 | | 3,444 | | 756 | | 1,720 | | 802 | | 3,278 | | | Carrying amount | 341,786 | | 50,675 | | 4,035 | | 396,496 | | 327,143 | | 46,319 | | 4,759 | | 378,221 | | | Total gross loans and acceptances | 613,442 | | 82,929 | | 6,803 | | 703,174 | | 599,114 | | 76,717 | | 7,091 | | 682,922 | | | Total net loans and acceptances | 612,303 | | 80,031 | | 5,593 | | 697,927 | | 597,995 | | 73,760 | | 6,117 | | 677,872 | | | Commitments and financial guarantee contracts | | | | | | | | | | Acceptable | | | | | | | | | | Investment grade | 220,375 | | 6,380 | | – | | 226,755 | | 202,913 | | 1,544 | | – | | 204,457 | | | Sub-investment grade | 61,727 | | 20,550 | | – | | 82,277 | | 65,393 | | 13,733 | | – | | 79,126 | | | Watchlist | – | | 7,837 | | – | | 7,837 | | 6 | | 9,086 | | – | | 9,092 | | | Impaired | – | | – | | 1,704 | | 1,704 | | – | | – | | 1,660 | | 1,660 | | | Gross commitments and financial guarantee contracts | 282,102 | | 34,767 | | 1,704 | | 318,573 | | 268,312 | | 24,363 | | 1,660 | | 294,335 | | | ACL | 335 | | 390 | | 58 | | 783 | | 256 | | 377 | | 56 | | 689 | | Carrying amount (6) (7) | $ | 281,767 | | $ | 34,377 | | $ | 1,646 | | $ | 317,790 | | $ | 268,056 | | $ | 23,986 | | $ | 1,604 | | $ | 293,646 | |
(1)Includes PCI loans. (2)Includes $67 million ($79 million as at October 31, 2025) of residential mortgages and $12,649 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.
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