v3.26.1
Securities
 9 Months Ended
Jul. 31, 2026
Disclosure of Financial Instruments [Abstract]  
Securities
NOTE 5: SECURITIES
UNREALIZED SECURITIES GAINS (LOSSES)
The following table summarizes the unrealized
 
gains and losses as at July 31, 2026 and
 
October 31, 2025.
Unrealized Gains (Losses) for Securities
 
at Fair Value Through Other Comprehensive Income
(millions of Canadian dollars)
As at
July 31, 2026
October 31, 2025
Cost/
Gross
Gross
Cost/
Gross
Gross
amortized
unrealized
unrealized
Fair
amortized
unrealized
unrealized
Fair
cost
1
gains
(losses)
value
cost
1
gains
(losses)
value
Government and government-related
securities
Canadian government debt
Federal
 
$
16,468
$
65
$
(55)
$
16,478
$
15,956
$
23
$
(88)
$
15,891
Provinces
24,761
211
(41)
24,931
20,971
120
(11)
21,080
U.S. federal, state, municipal governments, and
 
 
 
 
 
agencies debt
 
54,137
318
(185)
54,270
54,279
267
(54)
54,492
Other OECD government-guaranteed debt
9,763
40
(12)
9,791
7,864
15
(4)
7,875
Mortgage-backed securities
1,639
8
(1)
1,646
1,869
29
(2)
1,896
106,768
642
(294)
107,116
100,939
454
(159)
101,234
Other debt securities
 
 
 
 
Asset-backed securities
8,350
33
(9)
8,374
8,713
11
(15)
8,709
Corporate and other debt
15,422
76
(34)
15,464
13,011
106
(26)
13,091
23,772
109
(43)
23,838
21,724
117
(41)
21,800
Total debt securities
130,540
751
(337)
130,954
122,663
571
(200)
123,034
Equity securities
 
 
 
 
Common shares
2,761
246
(32)
2,975
2,332
226
(22)
2,536
Preferred shares
770
98
(79)
789
523
67
(79)
511
3,531
344
(111)
3,764
2,855
293
(101)
3,047
Total securities at fair value through
 
 
 
 
 
 
other comprehensive income
$
134,071
$
1,095
$
(448)
$
134,718
$
125,518
$
864
$
(301)
$
126,081
Includes the foreign exchange translation of amortized cost balances at the period-end spot rate.
EQUITY SECURITIES DESIGNATED AT FAIR VALUE THROUGH OTHER COMPREHENSIVE INCOME
 
The Bank designated certain equity securities
 
at FVOCI.
The following table summarizes the fair
 
value of equity securities designated at
 
FVOCI as at
July 31, 2026
 
and October 31, 2025, and dividend income
 
recognized on these securities for
 
the three and nine months ended July 31, 2026
 
and July 31, 2025.
Equity Securities Designated at Fair Value Through
 
Other Comprehensive Income
 
(millions of Canadian dollars)
As at
For the three months ended
For the nine months ended
July 31, 2026
October 31, 2025
July 31, 2026
July 31, 2025
July 31, 2026
July 31, 2025
Fair value
 
Dividend income recognized
 
Dividend income recognized
 
Common shares
$
2,975
$
2,536
$
34
$
52
$
86
$
167
 
Preferred shares
789
511
36
34
101
108
Total
$
3,764
$
3,047
$
70
$
86
$
187
$
275
The Bank disposed of certain equity securities
 
in line with the Bank’s investment strategy
 
and disposed of Federal Home Loan Bank (FHLB)
 
stock in accordance
with FHLB member stockholding requirements,
 
as follows:
Equity Securities Net Realized Gains
 
(Losses)
(millions of Canadian dollars)
For the three months ended
For the nine months ended
July 31, 2026
July 31, 2025
July 31, 2026
July 31, 2025
Equity Securities
Fair value
$
167
$
63
$
376
$
189
Cumulative realized gain/(loss)
60
15
108
(5)
FHLB Stock
Fair value
54
664
85
1,201
 
Cumulative realized gain/(loss)
–
–
–
–
DEBT SECURITIES NET REALIZED GAINS
 
(LOSSES)
The Bank disposed of certain debt securities
 
measured at amortized cost and FVOCI
 
during the quarter.
The following table summarizes the net realized
 
gains
and losses on securities disposed of during
 
the three and nine months ended July 31,
 
2026 and July 31, 2025, which are included
 
in Other income (loss) on the
Interim Consolidated Statement of Income.
Debt Securities Net Realized Gains (Losses)
(millions of Canadian dollars)
For the three months ended
For the nine months ended
July 31, 2026
July 31, 2025
1
July 31, 2026
July 31, 2025
1
Debt securities at amortized cost
$
8
$
(337)
$
8
$
(1,533)
Debt securities at fair value through other
 
comprehensive income
4
(35)
6
(41)
Total
$
12
$
(372)
$
14
$
(1,574)
Includes $
339
 
million (US$
244
 
million) and $
1,546
 
million (US$
1,092
 
million), respectively, for the three and nine months ended
 
July 31, 2025 of pre-tax losses on debt securities related
to the balance sheet restructuring initiative undertaken in the U.S. Banking segment. Refer to Note 25 of the Bank
 
’s 2025 Annual Consolidated Financial Statements for additional
information regarding the asset limitation on TD’s two U.S. bank subsidiaries.
CREDIT QUALITY OF DEBT SECURITIES
The Bank evaluates non-retail credit risk
 
on an individual borrower basis, using both
 
a borrower risk rating (BRR) and facility
 
risk rating, as detailed in the shaded
area of the “Managing Risk” section of the 2025
 
MD&A. This system is used to assess all non-retail
 
exposures, including debt securities.
The following table provides the gross carrying
 
amounts of debt securities measured at amortized
 
cost and debt securities at FVOCI by internal
 
risk rating for credit
risk management purposes, presenting
 
separately those debt securities that are
 
subject to Stage 1, Stage 2, and Stage 3
 
allowances. Refer to the “Allowance
 
for
Credit Losses” table in Note 6 for details regarding
 
the allowance and provision for credit losses
 
on debt securities.
Debt Securities by Risk Rating
 
(millions of Canadian dollars)
As at
July 31, 2026
October 31, 2025
Stage 1
Stage 2
Stage 3
Total
Stage 1
Stage 2
Stage 3
Total
Debt securities
1
Investment grade
$
366,430
$
–
$
n/a
2
$
366,430
$
362,521
$
–
$
n/a
$
362,521
Non-investment grade
1,230
116
n/a
1,346
738
167
n/a
905
Watch and classified
n/a
35
n/a
35
n/a
49
n/a
49
Default
n/a
n/a
–
–
n/a
n/a
–
–
Total debt securities
367,660
151
–
367,811
363,259
216
–
363,475
Allowance for credit losses on debt securities
at amortized cost
2
–
–
2
2
–
–
2
Total debt securities, net of
 
allowance
$
367,658
$
151
$
–
$
367,809
$
363,257
$
216
$
–
$
363,473
Includes debt securities backed by government-guaranteed loans of $
93
 
million (October 31, 2025 – $
94
 
million), which are reported in Non-investment grade or a lower risk rating based
on the issuer’s credit risk.
2
 
Not applicable.
As at July 31, 2026, total debt securities, net
 
of allowance, in the table above, include
 
debt securities measured at amortized
 
cost, net of allowance, of
$
236,855
 
million (October 31, 2025 – $
240,439
 
million), and debt securities measured at
 
FVOCI of $
130,954
 
million (October 31, 2025 – $
123,034
 
million). The
difference between probability-weighted ECLs
 
and base ECLs on debt securities at amortized
 
cost and at FVOCI as at both July 31,
 
2026 and October 31, 2025,
was insignificant.