Fair Value of Financial Instruments (Tables)

9 Months Ended

Jul. 31, 2026

Fair Value of Financial Liabilities Designated at Fair Value Through Profit or Loss and Changes in Fair Value

The following table presents the fair value of liabilities designated at fair value through profit or loss and their changes in fair value.


	Fair value						Change in fair value (1) Gains/(Losses)							Cumulative change in fair value (2) Gains/(Losses)
	As at						For the three months ended							As at
($ millions)	July 31 2026		April 30 2026		July 31 2025		July 31 2026		April 30 2026		July 31 2025			July 31 2026		April 30 2026		July 31 2025
Liabilities
Senior note liabilities (3)	$	52,864	$	48,629	$	43,536	$	517	$	507	$	(1,633	)	$	4,189	$	3,672	$	4,604

(1)

Change in the difference between the contractual maturity amount and the carrying value.

(2)

The cumulative change in fair value is measured from the instrument’s date of initial recognition.

(3)

Changes in fair value attributable to changes in the Bank’s own credit risk are recorded in other comprehensive income. Other changes in fair value are recorded in

non-interest

income – trading revenues. The offsetting fair value changes from associated derivatives is also recorded in

non-interest

income – trading revenues.

Changes in Fair Value Attributable to Changes in Bank'S Own Credit Risk for Financial Liabilities Designated at Fair Value

The following table presents the changes in fair value attributable to changes in the Bank’s own credit risk for financial liabilities designated at fair value through profit or loss as well as their contractual maturity and carrying amounts.


	Senior note liabilities
($ millions)		Contractual maturity amount		Carrying value		Difference between contractual maturity amount and carrying value		Changes in fair value for the three months period attributable to changes in own credit risk recorded in other comprehensive income Gains/(Losses)			Cumulative changes in fair value attributable to changes in own credit risk (1) Gains/(Losses)
As at July 31, 2026	$	57,053	$	52,864	$	4,189	$	(171	)	$	(1,610	)
As at April 30, 2026	$	52,301	$	48,629	$	3,672	$	413		$	(1,439	)
As at July 31, 2025	$	48,140	$	43,536	$	4,604	$	(562	)	$	(1,227	)

(1)

The cumulative change in fair value is measured from the instruments’ date of initial recognition.

Summary of Fair Values of Financial Instruments of Bank Using Valuation Methods and Assumption

The following table sets out the fair values of financial instruments of the Bank and excludes

non-financial

assets, such as property and equipment, investments in associates, precious metals, goodwill and other intangible assets.


	As at
	July 31, 2026				April 30, 2026				October 31, 2025
($ millions)	Total fair value		Total carrying value		Total fair value		Total carrying value		Total fair value		Total carrying value
Assets:
Cash and deposits with financial institutions	$	62,455	$	62,455	$	79,301	$	79,301	$	65,967	$	65,967
Trading assets		162,526		162,526		157,689		157,689		152,223		152,223
Securities purchased under resale agreements and securities borrowed		273,638		273,638		253,177		253,177		203,008		203,008
Derivative financial instruments		50,531		50,531		46,709		46,709		46,531		46,531
Investment securities – FVOCI and FVTPL		130,461		130,461		127,818		127,818		126,226		126,226
Investment securities – amortized cost		21,537		22,221		21,510		21,988		23,239		23,722
Loans		769,595		770,555		754,267		757,434		769,900		771,045
Customers’ liability under acceptances		161		161		155		155		177		177
Other financial assets		28,730		28,730		27,239		27,239		28,128		28,128
Liabilities:
Deposits		1,003,369		1,006,015		979,387		981,489		965,925		966,279
Financial instruments designated at fair value through profit or loss		52,864		52,864		48,629		48,629		47,165		47,165
Acceptances		162		162		157		157		178		178
Obligations related to securities sold short		39,971		39,971		38,064		38,064		38,104		38,104
Derivative financial instruments		58,344		58,344		56,854		56,854		56,031		56,031
Obligations related to securities sold under repurchase agreements and securities lent		226,261		226,261		238,663		238,663		189,144		189,144
Subordinated debentures		6,923		6,919		5,801		5,766		7,749		7,692
Other financial liabilities		56,883		57,045		53,031		52,913		56,500		56,529

Summary of Fair Value Hierarchy of Instruments Carried at Fair Value on a Recurring Basis

The following table outlines the fair value hierarchy and instruments carried at fair value on a recurring basis.


	As at
	July 31, 2026								April 30, 2026
($ millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Instruments carried at fair value on a recurring basis:
Assets:
Precious metals (1)	$	–	$	5,908	$	–	$	5,908	$	–	$	10,200	$	–	$	10,200
Trading assets
Loans		–		6,300		150		6,450		–		6,391		146		6,537
Canadian federal government and government guaranteed debt		16,781		2,465		–		19,246		15,886		4,901		–		20,787
Canadian provincial and municipal debt		9,846		3,043		–		12,889		9,498		3,308		–		12,806
U.S. treasury and other U.S. agencies’ debt		9,658		6		–		9,664		10,107		–		–		10,107
Other foreign governments’ debt		1,112		10,578		–		11,690		713		11,219		–		11,932
Corporate and other debt		7,439		5,701		–		13,140		3,352		8,216		–		11,568
Equity securities		87,881		149		8		88,038		82,338		150		17		82,505
Other		–		1,409		–		1,409		–		1,447		–		1,447
	$	132,717	$	29,651	$	158	$	162,526	$	121,894	$	35,632	$	163	$	157,689
Investment securities (2)
Canadian federal government and government guaranteed debt	$	17,224	$	7,567	$	–	$	24,791	$	14,170	$	9,273	$	–	$	23,443
Canadian provincial and municipal debt		19,235		4,860		–		24,095		17,815		6,178		–		23,993
U.S. treasury and other U.S. agencies’ debt		41,020		6,856		–		47,876		41,153		5,937		–		47,090
Other foreign governments’ debt		10,876		17,391		–		28,267		6,445		21,268		–		27,713
Corporate and other debt		904		2,127		29		3,060		192		3,053		9		3,254
Equity securities		177		263		1,931		2,371		80		335		1,910		2,325
	$	89,436	$	39,064	$	1,960	$	130,460	$	79,855	$	46,044	$	1,919	$	127,818
Derivative financial instruments
Interest rate contracts	$	–	$	10,146	$	–	$	10,146	$	–	$	9,456	$	–	$	9,456
Foreign exchange and gold contracts		–		25,040		1		25,041		–		21,996		1		21,997
Equity contracts		772		8,135		25		8,932		596		6,181		29		6,806
Credit contracts		–		195		22		217		–		169		9		178
Commodity contracts		–		6,183		12		6,195		–		8,265		7		8,272
	$	772	$	49,699	$	60	$	50,531	$	596	$	46,067	$	46	$	46,709
Liabilities:
Deposits (3)	$	–	$	464	$	–	$	464	$	–	$	448	$	–	$	448
Financial liabilities designated at fair value through profit or loss		–		52,864		–		52,864		–		48,629		–		48,629
Obligations related to securities sold short		37,355		2,615		1		39,971		33,715		4,349		–		38,064

Derivative financial instruments
Interest rate contracts		–		17,646		–		17,646		–		17,414		1		17,415
Foreign exchange and gold contracts		–		23,943		–		23,943		–		21,489		–		21,489
Equity contracts		1,348		10,021		19		11,388		848		10,074		28		10,950
Credit contracts		–		17		3		20		–		19		2		21
Commodity contracts		–		5,339		8		5,347		–		6,970		9		6,979
	$	1,348	$	56,966	$	30	$	58,344	$	848	$	55,966	$	40	$	56,854

(1)

The fair value of precious metals is determined based on quoted market prices and forward spot prices, where applicable, less the cost to sell.

(2)

Excludes debt investment securities measured at amortized cost of $22,221 (April 30, 2026 – $21,988).

(3)

These amounts represent embedded derivatives bifurcated from structured note liabilities measured at amortized cost.


	As at October 31, 2025
($ millions)	Level 1		Level 2		Level 3		Total
Instruments carried at fair value on a recurring basis:
Assets:
Precious metals (1)	$	–	$	5,156	$	–	$	5,156
Trading assets
Loans		–		8,486		1		8,487
Canadian federal government and government guaranteed debt		13,838		1,963		–		15,801
Canadian provincial and municipal debt		8,374		3,336		–		11,710
U.S. treasury and other U.S. agencies’ debt		9,132		–		–		9,132
Other foreign governments’ debt		1,837		8,451		–		10,288
Corporate and other debt		3,523		6,593		–		10,116
Equity securities		83,412		373		12		83,797
Other		–		2,892		–		2,892
	$	120,116	$	32,094	$	13	$	152,223
Investment securities (2)
Canadian federal government and government guaranteed debt	$	15,143	$	7,967	$	–	$	23,110
Canadian provincial and municipal debt		16,293		4,550		–		20,843
U.S. treasury and other U.S. agencies’ debt		42,300		6,736		–		49,036
Other foreign governments’ debt		7,099		20,627		–		27,726
Corporate and other debt		116		2,892		32		3,040
Equity securities		96		329		2,046		2,471
	$	81,047	$	43,101	$	2,078	$	126,226
Derivative financial instruments
Interest rate contracts	$	–	$	9,804	$	3	$	9,807
Foreign exchange and gold contracts		–		26,411		1		26,412
Equity contracts		816		6,452		161		7,429
Credit contracts		–		269		4		273
Commodity contracts		–		2,594		16		2,610
	$	816	$	45,530	$	185	$	46,531
Liabilities:
Deposits (3)	$	–	$	335	$	–	$	335
Financial liabilities designated at fair value through profit or loss		–		47,165		–		47,165
Obligations related to securities sold short		34,864		3,240		–		38,104

Derivative financial instruments
Interest rate contracts		–		17,181		8		17,189
Foreign exchange and gold contracts		–		25,793		–		25,793
Equity contracts		783		9,288		43		10,114
Credit contracts		–		24		2		26
Commodity contracts		–		2,897		12		2,909
	$	783	$	55,183	$	65	$	56,031

(1)

The fair value of precious metals is determined based on quoted market prices and forward spot prices, where applicable, less the cost to sell.

(2)

Excludes debt investment securities measured at amortized cost of $23,722.

(3)

These amounts represent embedded derivatives bifurcated from structured note liabilities measured at amortized cost.

Summary of Changes in Level 3 Instruments Carried at Fair Value

The following table summarizes the changes in Level 3 instruments carried at fair value for the three and nine months ended July 31, 2026.

All positive balances represent assets and negative balances represent liabilities. Consequently, positive amounts indicate purchases of assets or settlements of liabilities and negative amounts indicate sales of assets or issuances of liabilities.


	For the three months ended July 31, 2026
($ millions)		Fair value, beginning of the quarter			Gains/ (losses) recorded in income (1)			Gains/ (losses) recorded in OCI			Purchases/ Issuances			Sales/ Settlements			Transfers into Level 3			Transfers out of Level 3			Fair value, end of the quarter			Changes in unrealized gains/(losses) recorded in income for instruments still held (2)
Trading assets
Loans	$	146		$	4		$	–		$	–		$	–		$	–		$	–		$	150		$	4
Equity securities		17			(1	)		–			5			(8	)		1			(6	)		8			(1	)
		163			3			–			5			(8	)		1			(6	)		158			3
Investment securities
Corporate and other debt		9			–			(1	)		21			–			–			–			29			–
Equity securities		1,910			16			1			121			(117	)		–			–			1,931			16
		1,919			16			–			142			(117	)		–			–			1,960			16
Derivative financial instruments – assets
Foreign exchange and gold contracts		1			1			–			–			–			–			(1	)		1			1
Equity contracts		29			1			–			5			–			–			(10	)		25			1	(3)
Credit contracts		9			–			–			21			(8	)		–			–			22			–
Commodity contracts		7			5			–			–			–			–			–			12			5

Derivative financial instruments – liabilities
Interest rate contracts		(1	)		–			–			–			–			–			1			–			–
Equity contracts		(28	)		–			–			(10	)		–			–			19			(19	)		–
Credit contracts		(2	)		–			–			(2	)		1			–			–			(3	)		–
Commodity contracts		(9	)		–			–			–			1			–			–			(8	)		–
		6			7			–			14			(6	)		–			9			30			7
Obligations related to securities sold short		–			–			–			–			–			(1	)		–			(1	)		–
Total	$	2,088		$	26		$	–		$	161		$	(131	)	$	–		$	3		$	2,147		$	26

(1)

Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2.

(2)

These amounts represent the gains and losses from fair value changes of Level 3 instruments still held at the end of the period that are recorded in the Consolidated Statement of Income.

(3)

Certain unrealized gains and losses on derivative assets and liabilities are largely offset by

mark-to-market

changes on other instruments included in trading revenues in the Consolidated Statement of Income, since these instruments act as an economic hedge to certain derivative assets and liabilities.

The following table summarizes the changes in Level 3 instruments carried at fair value for the three months ended July 31, 2025.


	For the three months ended July 31, 2025
($ millions)	Fair value, beginning of the quarter			Gains/ (losses) recorded in income (1)			Gains/ (losses) recorded in OCI		Purchases/ Issuances			Sales/ Settlements			Transfers into Level 3		Transfers out of Level 3		Fair value, end of the quarter
Trading assets	$	9		$	–		$	–	$	2		$	(3	)	$	179	$	(3)	$	184
Investment securities		1,988			43			3		49			(18	)		12		–		2,077
Derivative financial instruments		(8	)		(3	)		–		(6	)		12			–		3		(2	)

(1)

Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2.


	For the nine months ended July 31, 2026
($ millions)		Fair value, beginning of the period			Gains/ (losses) recorded in income (1)			Gains/ (losses) recorded in OCI			Purchases/ Issuances			Sales/ Settlements			Transfers into Level 3			Transfers out of Level 3			Fair value, end of the period			Changes in unrealized gains/(losses) recorded in income for instruments still held (2)
Trading assets
Loans	$	1		$	(13	)	$	(3	)	$	165		$	–		$	1		$	(1	)	$	150		$	(13	)
Equity securities		12			(2	)		–			9			(11	)		12			(12	)		8			(1	)
		13			(15	)		(3	)		174			(11	)		13			(13	)		158			(14	)
Investment securities
Corporate and other debt		32			–			(3	)		22			(22	)		–			–			29			–
Equity securities		2,046			111			30			267			(523	)		–			–			1,931			111
		2,078			111			27			289			(545	)		–			–			1,960			111
Derivative financial instruments – assets
Interest rate contracts		3			(1	)		–			–			(2	)		–			–			–			(1	) (3)
Foreign exchange and gold contracts		1			1			–			–			–			1			(2	)		1			1
Equity contracts		161			(9	)		–			12			(70	)		31			(100	)		25			11	(4)
Credit contracts		4			2			–			24			(8	)		–			–			22			2
Commodity contracts		16			(4	)		–			–			–			–			–			12			(4	)

Derivative financial instruments – liabilities
Interest rate contracts		(8	)		4			–			(1	)		1			(1	)		5			–			(2	) (3)
Equity contracts		(43	)		9			–			(22	)		–			–			37			(19	)		9	(4)
Credit contracts		(2	)		–			–			(2	)		1			–			–			(3	)		–
Commodity contracts		(12	)		2			–			–			2			–			–			(8	)		2
		120			4			–			11			(76	)		31			(60	)		30			18
Obligations related to securities sold short		–			–			–			–			–			(1	)		–			(1	)		–
Total	$	2,211		$	100		$	24		$	474		$	(632	)	$	43		$	(73	)	$	2,147		$	115

(1)

Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2.

(2)

These amounts represent the gains and losses from fair value changes of Level 3 instruments still held at the end of the period that are recorded in the Consolidated Statement of Income.

(3)

Certain unrealized gains and losses on interest rate derivative contracts are largely offset by

mark-to-market

changes on embedded derivatives on certain deposit liabilities in the Consolidated Statement of Income.

(4)

Certain unrealized gains and losses on derivative assets and liabilities are largely offset by

mark-to-market

changes on other instruments included in trading revenues in the Consolidated Statement of Income, since these instruments act as an economic hedge to certain derivative assets and liabilities.

The following table summarizes the changes in Level 3 instruments carried at fair value for the nine months ended July 31, 2025.


	For the nine months ended July 31, 2025
($ millions)	Fair value, beginning of the period			Gains/ (losses) recorded in income (1)		Gains/ (losses) recorded in OCI		Purchases/ Issuances			Sales/ Settlements			Transfers into Level 3		Transfers out of Level 3			Fair value, end of the period
Trading assets	$	25		$	1	$	–	$	6		$	(18	)	$	192	$	(22	)	$	184
Investment securities		1,901			107		62		149			(137	)		12		(17	)		2,077
Derivative financial instruments		10			(15)		–		(2	)		20			(15)		–			(2	)
Obligations related to securities sold short		(2	)		–		–		–			–			–		2			–

(1)

Gains or losses for items in Level 3 may be offset with losses or gains on related hedges in Level 1 or Level 2.