v3.26.1
Loans and allowance for credit losses
 9 Months Ended
Jul. 31, 2026
Text Block [Abstract]  
Loans and allowance for credit losses
Note 5
  
Loans and allowance for credit losses
Allowance for credit losses
 
     For the three months ended  
   
July 31, 2026
         July 31, 2025  
(Millions of Canadian
dollars
)		  
Balance at
beginning
of period
    
Provision
for credit
losses
    
Net
write-offs
    
Exchange
rate and
other
    
Balance at
end of
period
          Balance at
beginning
of period		     Provision
for credit
losses		     Net
write-offs
     Exchange
rate and
other		     Balance at
end of
period		  
Retail
                      
Residential mortgages
  
$
904
 
  
$
25
 
  
$
(11
)
  
$
(18
) 
  
$
900
 
     $ 730     $ 46     $ 1     $ (10 )    $ 767  
Personal
  
 
1,607
 
  
 
248
 
  
 
(208
)
  
 
(4
) 
  
 
1,643
 
       1,633       184       (197 )      3       1,623  
Credit cards
  
 
1,351
 
  
 
254
 
  
 
(239
) 
  
 
2
 
  
 
1,368
 
       1,320       217       (214 )      –       1,323  
Small business
  
 
329
 
  
 
48
 
  
 
(29
) 
  
 
(11
)
  
 
337
 
       343       34       (25 )      (7 )      345  
Wholesale
  
 
3,613
 
  
 
425
 
  
 
(503
) 
  
 
(17
)
  
 
3,518
 
         3,455       404       (187 )      (88 )     3,584  
   
$
7,804
 
  
$
1,000
 
  
$
(990
)
  
$
(48
)
  
$
7,766
 
       $ 7,481     $ 885     $ (622 )    $ (102 )    $ 7,642  
Presented as:
                      
Allowance for loan losses
  
$
7,521
 
        
$
7,429
 
     $ 7,125           $ 7,272  
Other liabilities – Provisions
  
 
282
 
        
 
336
 
       353             367  
Other components of equity
  
 
1
 
                          
 
1
 
         3                               3  
                     
     For the nine months ended  
   
July 31, 2026
         July 31, 2025  
(Millions of Canadian dollars)  
Balance at
beginning
of period
    
Provision
for credit
losses
    
Net
write-offs
    
Exchange
rate and
other
    
Balance at
end of
period
          Balance at
beginning
of period		     Provision
for credit
losses		     Net
write-offs
     Exchange
rate and
other		     Balance at
end of
period		  
Retail
                      
Residential mortgages
  
$
794
 
  
$
184
 
  
$
(17
)
  
$
(61
) 
  
$
900
 
     $ 572     $ 240     $ (3 )    $ (42 )    $ 767  
Personal
  
 
1,639
 
  
 
639
 
  
 
(616
)
  
 
(19
)
  
 
1,643
 
       1,482       719       (564 )      (14 )      1,623  
Credit cards
  
 
1,356
 
  
 
737
 
  
 
(725
)
  
 
–
  
 
1,368
 
       1,233       697       (606 )      (1 )      1,323  
Small business
  
 
351
 
  
 
90
 
  
 
(81
)
  
 
(23
)
  
 
337
 
       272       168       (77 )      (18 )      345  
Wholesale
  
 
3,319
 
  
 
1,363
 
  
 
(916
)
  
 
(248
)
  
 
3,518
 
         2,793       1,534       (536 )      (207 )     3,584  
   
$
 7,459
 
  
$
 3,013
 
  
$
 (2,355
)
  
$
 (351
)
  
$
7,766
 
       $ 6,352     $  3,358     $  (1,786 )    $  (282 )   $ 7,642  
Presented as:
                      
Allowance for loan losses
  
$
7,093
 
        
$
7,429
 
     $ 6,037           $ 7,272  
Other liabilities – Provisions
  
 
365
 
        
 
336
 
       311             367  
Other components of equity
  
 
1
 
                          
 
1
 
         4                               3  
The following table reconciles the opening and closing allowance for each major product of loans and commitments as determined by our modelled, scenario-weighted allowance and the application of expert credit judgment as applicable. Reconciling items include the following:
•  
Model changes, as applicable, which generally comprise the impact of significant changes to the quantitative models used to estimate expected credit losses and any staging impacts that may arise.
•  
Transfers between stages, which are presumed to occur before any corresponding remeasurements of the allowance.
•  
Originations, which reflect the allowance related to assets newly recognized during the period, including those assets that were derecognized following a modification of terms.
•  
Maturities, which reflect the allowance related to assets derecognized during the period without a credit loss being incurred, including those assets that were derecognized following a modification of terms.
•  
Changes in risk, parameters and exposures, which comprise the impact of changes in model inputs or assumptions, including changes in forward-looking macroeconomic conditions; partial repayments and additional draws on existing facilities; changes in the measurement following a transfer between stages; and unwinding of the time value di
sc
ount due to the passage of time in Stage 1 and Stage 2.
 
Allowance for credit losses – Retail and wholesale loans
 
     For the three months ended  
   
July 31, 2026
         July 31, 2025  
   
Performing
        
Impaired
               Performing         Impaired        
(Millions of Canadian dollars)  
Stage 1
    
Stage 2
         
Stage 3
    
Total
          Stage 1     Stage 2          Stage 3     Total  
Residential mortgages
                      
Balance at beginning of period
  
$
215
 
  
$
308
 
    
$
381
 
  
$
904
 
     $ 259     $ 209       $ 262     $ 730  
Provision for credit losses
                      
Model changes
  
 
–
 
  
 
–
 
    
 
–
 
  
 
–
 
       –       –         –       –  
Transfers to stage 1
  
 
112
 
  
 
(110
) 
      
 
(2
) 
  
 
–
 
       57       (53 )        (4 )      –  
Transfers to stage 2
  
 
(9
) 
  
 
9
 
      
 
–
 
  
 
–
 
       (15 )      15         –       –  
Transfers to stage 3
  
 
–
 
  
 
(18
) 
      
 
18
 
  
 
–
 
       (2 )      (12 )        14       –  
Originations
  
 
17
 
  
 
–
 
      
 
–
 
  
 
17
 
       27       –         –       27  
Maturities
  
 
(6
) 
  
 
(17
) 
      
 
–
 
  
 
(23
) 
       (7 )      (6 )        –       (13 ) 
Changes in risk, parameters and exposures
  
 
(94
) 
  
 
110
 
      
 
15
 
  
 
31
 
       (50 )      66         16       32  
Write-offs
  
 
–
 
  
 
–
 
      
 
(14
) 
  
 
(14
) 
       –       –         (3 )      (3 ) 
Recoveries
  
 
–
 
  
 
–
 
      
 
3
 
  
 
3
 
       –       –         4       4  
Exchange rate and other
  
 
–
 
  
 
2
 
      
 
(20
) 
  
 
(18
) 
         (1 )      2           (11 )      (10 ) 
Balance at end of period
  
$
235
 
  
$
284
 
      
$
381
 
  
$
900
 
       $ 268     $ 221         $ 278     $ 767  
Personal
                      
Balance at beginning of period
  
$
340
 
  
$
1,036
 
    
$
231
 
  
$
1,607
 
     $ 304     $ 1,110       $ 219     $ 1,633  
Provision for credit losses
                      
Model changes
  
 
–
 
  
 
–
 
    
 
–
 
  
 
–
 
       –       –         –       –  
Transfers to stage 1
  
 
194
 
  
 
(193
) 
      
 
(1
) 
  
 
–
 
       155       (155 )        –       –  
Transfers to stage 2
  
 
(24
) 
  
 
24
 
      
 
–
 
  
 
–
 
       (22 )      22         –       –  
Transfers to stage 3
  
 
(2
) 
  
 
(38
) 
      
 
40
 
  
 
–
 
       (1 )      (42 )        43       –  
Originations
  
 
74
 
  
 
–
 
      
 
–
 
  
 
74
 
       26       –         –       26  
Maturities
  
 
(10
) 
  
 
(66
) 
      
 
–
 
  
 
(76
) 
       (13 )      (62 )        –       (75 ) 
Changes in risk, parameters and exposures
  
 
(212
) 
  
 
286
 
      
 
176
 
  
 
250
 
       (157 )      238         152       233  
Write-offs
  
 
–
 
  
 
–
 
      
 
(255
) 
  
 
(255
) 
       –       –         (237 )      (237 ) 
Recoveries
  
 
–
 
  
 
–
 
      
 
47
 
  
 
47
 
       –       –         40       40  
Exchange rate and other
  
 
(1
) 
  
 
2
 
      
 
(5
) 
  
 
(4
)
         1       (1 )          3       3  
Balance at end of period
  
$
359
 
  
$
1,051
 
      
$
233
 
  
$
1,643
 
       $ 293     $ 1,110         $ 220     $ 1,623  
Credit cards
                      
Balance at beginning of period
  
$
269
 
  
$
1,082
 
    
$
–
 
  
$
1,351
 
     $ 202     $ 1,118       $ –     $ 1,320  
Provision for credit losses
                      
Transfers to stage 1
  
 
164
 
  
 
(164
) 
      
 
–
 
  
 
–
 
       169       (169 )        –       –  
Transfers to stage 2
  
 
(30
) 
  
 
30

 
      
 
–
 
  
 
–
 
       (27 )      27         –       –  
Transfers to stage 3
  
 
(1
) 
  
 
(158
) 
      
 
159
 
  
 
–
 
       (1 )      (159 )        160       –  
Originations
  
 
4
 
  
 
–
 
      
 
–
 
  
 
4
 
       7       –         –       7  
Maturities
  
 
(1
) 
  
 
(12
) 
      
 
–
 
  
 
(13
) 
       (2 )      (13 )        –       (15 ) 
Changes in risk,
parameters
and exposures
  
 
(123
) 
  
 
306
 
      
 
80
 
  
 
263
 
       (135 )      306         54       225  
Write-offs
  
 
–
 
  
 
–
 
      
 
(273
) 
  
 
(273
) 
       –       –         (262 )      (262 ) 
Recoveries
  
 
–
 
  
 
–
 
      
 
34
 
  
 
34
 
       –       –         48       48  
Exchange rate and other
  
 
1

 
 
 
1

 
      
 
–
 
  
 
2
 
         –       –           –       –  
Balance at end of period
  
$
283
 
  
$
1,085
 
      
$
–
 
  
$
1,368
 
       $ 213     $ 1,110         $ –     $ 1,323  
Small business
                      
Balance at beginning of period
  
$
97
 
  
$
116
 
    
$
116
 
  
$
329
 
     $ 98     $ 114       $ 131     $ 343  
Provision for credit losses
                      
Transfers to stage 1
  
 
18
 
  
 
(18
) 
      
 
–
 
  
 
–
 
       14       (14 )        –       –  
Transfers to stage 2
  
 
(6
) 
  
 
6
 
      
 
–
 
  
 
–
 
       (6 )      6         –       –  
Transfers to stage 3
  
 
–
 
  
 
(5
) 
      
 
5
 
  
 
–
 
       –       (4 )        4       –  
Originations
  
 
11
 
  
 
–
 
      
 
–
 
  
 
11
 
       12       –         –       12  
Maturities
  
 
(3
) 
  
 
(6
) 
      
 
–
 
  
 
(9
) 
       (6 )      (7 )        –       (13 ) 
Changes in risk, parameters and exposures
  
 
(18
) 
  
 
25
 
      
 
39
 
  
 
46
 
       (16 )      16         35       35  
Write-offs
  
 
–
 
  
 
–
 
      
 
(35
) 
  
 
(35
) 
       –       –         (31 )      (31 ) 
Recoveries
  
 
–
 
  
 
–
 
      
 
6
 
  
 
6
 
       –       –         6       6  
Exchange rate and other
  
 
–
 
  
 
(1
) 
      
 
(10
) 
  
 
(11
) 
         –       2           (9 )      (7 ) 
Balance at end of period
  
$
99
 
  
$
117
 
      
$
121
 
  
$
337
 
       $ 96     $ 113         $ 136     $ 345  
Wholesale
                      
Balance at beginning of period
  
$
860
 
  
$
1,164
 
    
$
1,589
 
  
$
3,613
 
     $ 946     $ 1,104       $ 1,405     $ 3,455  
Provision for credit losses
                      
Transfers to stage 1
  
 
88
 
  
 
(87
) 
      
 
(1
) 
  
 
–
 
       107       (107 )        –       –  
Transfers to stage 2
  
 
(24
) 
  
 
26
 
      
 
(2
) 
  
 
–
 
       (33 )      34         (1 )      –  
Transfers to stage 3
  
 
(1
) 
  
 
(69
) 
      
 
70
 
  
 
–
 
       (3 )      (35 )        38       –  
Originations
  
 
150
 
  
 
–
 
      
 
–
 
  
 
150
 
       168       –         –       168  
Maturities
  
 
(107
) 
  
 
(159
) 
      
 
–
 
  
 
(266
) 
       (133 )      (121 )        –       (254 ) 
Changes in risk, parameters and exposures
  
 
(270
) 
  
 
428
 
      
 
383
 
  
 
541
 
       (169 )      258         402       491  
Write-offs
  
 
–
 
  
 
–
 
      
 
(529
) 
  
 
(529
)
       –       –         (210 )      (210 ) 
Recoveries
  
 
–
 
  
 
–
 
      
 
26
 
  
 
26
 
       –       –         23       23  
Exchange rate and other
  
 
12
 
  
 
18
 
      
 
(47
) 
  
 
(17
) 
         1       3           (93 )      (89 ) 
Balance at end of period
  
$
  708
 
  
$
  1,321
 
      
$
  1,489
 
  
$
  3,518
 
       $   884     $   1,136         $   1,564     $   3,584  
 
     For the nine months ended  
   
July 31, 2026
         July 31, 2025  
   
Performing
        
Impaired
               Performing         Impaired        
(Millions of Canadian dollars)  
Stage 1
    
Stage 2
         
Stage 3
    
Total
          Stage 1     Stage 2          Stage 3     Total  
Residential mortgages
                      
Balance at beginning of period
  
$
276
 
  
$
204
 
    
$
314
 
  
$
794
 
     $ 215     $ 126       $ 231     $ 572  
Provision for credit losses
                      
Model changes
  
 
(88
)
  
 
131
 
    
 
–
 
  
 
43
 
       –       –         –       –  
Transfers to stage 1
  
 
266
 
  
 
(259
)
    
 
(7
)
  
 
–
 
       116       (112 )        (4 )      –  
Transfers to stage 2
  
 
(31
)
  
 
32
 
    
 
(1
)
  
 
–
 
       (33 )      39         (6 )      –  
Transfers to stage 3
  
 
(4
)
  
 
(52
)
    
 
56
 
  
 
–
 
       (4 )      (36 )        40       –  
Originations
  
 
58
 
  
 
–
 
    
 
–
 
  
 
58
 
       74       –         –       74  
Maturities
  
 
(21
)
  
 
(44
)
    
 
–
 
  
 
(65
)
       (17 )      (20 )        –       (37 ) 
Changes in risk, parameters and exposures
  
 
(221
)
  
 
272
 
    
 
97
 
  
 
148
 
       (83 )      224         62       203  
Write-offs
  
 
–
 
  
 
–
 
    
 
(26
)
  
 
(26
)
       –       –         (12 )      (12 ) 
Recoveries
  
 
–
 
  
 
–
 
    
 
9
 
  
 
9
 
       –       –         9       9  
Exchange rate and other
  
 
–
 
  
 
–
      
 
(61
)
  
 
(61
)
         –       –           (42 )      (42 ) 
Balance at end of period
  
$
235
 
  
$
284
 
      
$
381
 
  
$
900
 
       $ 268     $ 221         $ 278     $ 767  
Personal
                      
Balance at beginning of period
  
$
291
 
  
$
1,115
 
    
$
233
 
  
$
1,639
 
     $ 305     $ 966       $ 211     $ 1,482  
Provision for credit losses
                      
Model changes
  
 
84
 
  
 
(138
)
    
 
–
 
  
 
(54
)
       –       –         –       –  
Transfers to stage 1
  
 
502
 
  
 
(501
)
    
 
(1

)
 
 
–
 
       440       (439 )        (1 )      –  
Transfers to stage 2
  
 
(67
)
  
 
67
 
    
 
–
 
  
 
–
 
       (75 )      78         (3 )      –  
Transfers to stage 3
  
 
(4
)
  
 
(114
)
    
 
118
 
  
 
–
 
       (3 )      (121 )        124       –  
Originations
  
 
153
 
  
 
–
 
    
 
–
 
  
 
153
 
       79       –         –       79  
Maturities
  
 
(30
)
  
 
(188
)
    
 
(1
)
  
 
(219
)
       (39 )      (168 )        –       (207 ) 
Changes in risk, parameters and exposures
  
 
(569
)
  
 
810
 
    
 
518
 
  
 
759
 
       (415 )      796         466       847  
Write-offs
  
 
–
 
  
 
–
 
    
 
(748
)
  
 
(748
)
       –       –         (675 )      (675 ) 
Recoveries
  
 
–
 
  
 
–
 
    
 
132
 
  
 
132
 
       –       –         111       111  
Exchange rate and other
  
 
(1
)
  
 
–
      
 
(18
)
  
 
(19
)
         1       (2 )          (13 )      (14 ) 
Balance at
end
of period
  
$
359
 
  
$
1,051
 
      
$
233
 
  
$
1,643
 
       $ 293     $ 1,110         $ 220     $ 1,623  
Credit cards
                      
Balance at beginning of period
  
$
217
 
  
$
1,139
 
    
$
–
 
  
$
1,356
 
     $ 207     $ 1,026       $ –     $ 1,233  
Provision for credit losses
                      
Transfers to stage 1
  
 
476
 
  
 
(476
)
    
 
–
 
  
 
–
 
       503       (503 )        –       –  
Transfers to stage 2
  
 
(83
)
  
 
83
 
    
 
–
 
  
 
–
 
       (83 )      83         –       –  
Transfers to stage 3
  
 
(2
)
  
 
(470
)
    
 
472
 
  
 
–
 
       (2 )      (442 )        444       –  
Originations
  
 
10
 
  
 
–
 
    
 
–
 
  
 
10
 
       12       –         –       12  
Maturities
  
 
(3
)
  
 
(38
)
    
 
–
 
  
 
(41
)
       (4 )      (40 )        –       (44 ) 
Changes in risk, parameters and exposures
  
 
(332
)
  
 
847
 
    
 
253
 
  
 
768
 
       (418 )      986         161       729  
Write-offs
  
 
–
 
  
 
–
 
    
 
(857
)
  
 
(857
)
       –       –         (742 )      (742 ) 
Recoveries
  
 
–
 
  
 
–
 
    
 
132
 
  
 
132
 
       –       –         136       136  
Exchange rate and other
  
 
–
  
 
–
      
 
–
 
  
 
–
         (2 )      –           1       (1 ) 
Balance at end of period
  
$
283
 
  
$
1,085
 
      
$
–
 
  
$
1,368
 
       $ 213     $ 1,110         $ –     $ 1,323  
Small business
                      
Balance at beginning of period
  
$
95
 
  
$
117
 
    
$
139
 
  
$
351
 
     $ 80     $ 86       $ 106     $ 272  
Provision for credit losses
                      
Transfers to stage 1
  
 
53
 
  
 
(53
)
    
 
–
 
  
 
–
 
       37       (37 )        –       –  
Transfers to stage 2
  
 
(19
)
  
 
19
 
    
 
–
 
  
 
–
 
       (17 )      17         –       –  
Transfers to stage 3
  
 
(1
)
  
 
(16
)
    
 
17
 
  
 
–
 
       (1 )      (10 )        11       –  
Originations
  
 
33
 
  
 
–
 
    
 
–
 
  
 
33
 
       32       –         –       32  
Maturities
  
 
(16
)
  
 
(36
)
    
 
–
 
  
 
(52
)
       (16 )      (18 )        –       (34 ) 
Changes in risk, parameters and exposures
  
 
(48
)
  
 
85
 
    
 
72
 
  
 
109
 
       (22 )      73         119       170  
Write-offs
  
 
–
 
  
 
–
 
    
 
(100
)
  
 
(100
)
       –       –         (91 )      (91 ) 
Recoveries
  
 
–
 
  
 
–
 
    
 
19
 
  
 
19
 
       –       –         14       14  
Exchange rate and other
  
 
2
 
  
 
1
 
      
 
(26
)
  
 
(23
)
         3       2           (23 )      (18 ) 
Balance at end of period
  
$
99
 
  
$
117
 
      
$
121
 
  
$
337
 
       $ 96     $ 113         $ 136     $ 345  
Wholesale
                      
Balance at beginning of period
  
$
896
 
  
$
1,123
 
    
$
1,300
 
  
$
3,319
 
     $ 787     $ 1,038       $ 968     $ 2,793  
Provision for credit losses
                      
Transfers to stage 1
  
 
208
 
  
 
(207
)
    
 
(1
)
  
 
–
 
       206       (205 )        (1 )      –  
Transfers to stage 2
  
 
(77
)
  
 
79
 
    
 
(2
)
  
 
–
 
       (97 )      107         (10 )      –  
Transfers to stage 3
  
 
(7
)
  
 
(194
)
    
 
201
 
  
 
–
 
       (9 )      (241 )        250       –  
Originations
  
 
448
 
  
 
–
 
    
 
–
 
  
 
448
 
       592       –         –       592  
Maturities
  
 
(332
)
  
 
(449
)
    
 
–
 
  
 
(781
)
       (436 )      (318 )        –       (754 ) 
Changes in risk,
parameters
and e
xp
osures
  
 
(427
)
  
 
968
 
    
 
1,155
 
  
 
1,696
 
       (158 )      757         1,098       1,697  
Write-offs
  
 
–
 
  
 
–
 
    
 
(989
)
  
 
(989
)
       –       –         (590 )      (590 ) 
Recoveries
  
 
–
 
  
 
–
 
    
 
73
 
  
 
73
 
       –       –         54       54  
Exchange rate and other
  
 
(1
)
  
 
1
      
 
(248
)
  
 
(248
)
         (1 )      (2 )          (205 )      (208 ) 
Balance at end of period
  
$
  708
 
  
$
  1,321
 
      
$
  1,489
 
  
$
  3,518
 
       $   884     $   1,136         $   1,564     $   3,584  
 
Key inputs and assumptions
The following provides an update on the key inputs and assumptions used in the measurement of
ex
pected credit losses. For further details, refer to Note 2 and Note 5 of our audited 2025 Annual Consolidated Financial Statements.
Our base scenario reflects an evolving U.S. trade policy and the impact of higher energy prices resulting from the conflict in the Middle East. Economic growth is expected to be positive in both Canada and the U.S. Unemployment rates through to the end of calendar 2027 are expected to gradually decline in Canada and remain unchanged in the U.S. Central bank policy rates are expected to remain unchanged through calendar 2026, followed by rate increases in calendar Q1 2027 in Canada and to remain unchanged through calendar 2027 in the U.S.
Our downside scenarios include two additional and more severe downside scenarios designed for trade disruptions and the real estate sector. Our downside scenarios reflect the possibility of moderate and escalating macroeconomic shocks beginning in calendar Q4 2026 relative to our base scenario. In these scenarios, conditions are expected to deteriorate from calendar Q3 2026 levels for up to 18 months, followed by a recovery for the remainder of the period. These scenarios assume monetary policy responses that return the economy to a long-run, sustainable growth rate within the forecast period.
Our upside scenario reflects slightly stronger economic growth than the base scenario, without prompting a further offsetting monetary policy response as compared to our base scenario, followed by a return to a long-run sustainable growth rate within the forecast period.
The following provides additional detail about our calendar quarter forecasts for certain key macroeconomic variables used in the models to estimate the allowance for credit losses:
 
•  
Unemployment rates
–
In our base forecast, we expect the Canadian unemployment rate to hold at
 6.5%
in calendar Q3 2026 then decline over the short term, before returning to its long run equilibrium towards the latter end of the horizon. The U.S. unemployment rate is expected to hold at
 
4.3
%
in calendar Q3 2026, then increase to its long run equilibrium level by calendar Q2 2028.
 
 
 

  
 
•  
Gross Domestic Product (GDP)
– In our base forecast, we expect both Canadian and U.S. GDP to continuously grow in calendar Q
3
2026 and thereafter. GDP in calendar Q4 2026 is expected to be
1.3%
and 2.2%
above Q4 2025 levels in Canada and the
U.S., respectively. 
 
 

  
 
•
 
Canadian housing price index
– In our base forecast, we expect housing prices to increase by 0.9% over the next 12 months from calendar Q3 2026, with a compound annual growth rate of 4.7% for the following 2 to 5 years. The range of annual housing price growth (contraction) in our alternative real estate downside and upside scenarios is (27.1)% to 10.9% over the next 12 months and 4.2% to 9.6% for the following 2 to 5 years. As at October 31, 2025, our base forecast included housing price growth of 0.3% from calendar Q4 2025 for the next 12 months and housing price growth of 3.4% for the following 2 to 5 years.
Credit risk exposure by
int
ernal risk rating
The following table presents the gross carrying amount of loans measured at amortized cost,
and
the full contractual amount of undrawn loan commitments subject to the impairment requirements of IFRS 9
Financial Instruments
. Risk ratings are based on internal ratings used in the measurement of expected credit losses as at the reporting date, as outlined in the internal ratings maps for Wholesale and Retail facilities in the Credit risk section of our 2025 Annual Report.
 
    
As at             
  
   
July 31, 2026
        
October 31, 2025
  
(Millions of Canadian dollars)  
Stage 1
    
Stage 2
    
Stage 3 
(1)		    
Total
          Stage 1     Stage 2     Stage 3 (1)     Total  
Retail
(2)
                  
Loans outstanding – Residential mortgages
                  
Low risk
  
$
415,012
 
  
$
963
 
  
$
–
 
  
$
415,975
 
     $ 386,060     $ 16,495     $ –     $ 402,555  
Medium risk
  
 
19,585
 
  
 
5,193
 
  
 
–
 
  
 
24,778
 
       20,622       2,571       –       23,193  
High risk
  
 
3,096
 
  
 
8,691
 
  
 
–
 
  
 
11,787
 
       2,131       6,532       –       8,663  
Not rated
(3)
  
 
56,543
 
  
 
1,764
 
  
 
–
 
  
 
58,307
 
       54,253       1,940       –       56,193  
Impaired
  
 
–
 
  
 
–
 
  
 
2,188
 
  
 
2,188
 
         –       –       1,681       1,681  
   
 
494,236
 
  
 
16,611
 
  
 
2,188
 
  
 
513,035
 
         463,066       27,538       1,681       492,285  
Items not subject to impairment
(4)
                          
 
1,382
 
                                 1,128  
Total
                          
$
514,417
 
                               $ 493,413  
Loans outstanding – Personal
                  
Low risk
  
$
71,701
 
  
$
1,880
 
  
$
–
 
  
$
73,581
 
     $ 87,536     $ 2,712     $ –     $ 90,248  
Medium risk
  
 
3,971
 
  
 
1,546
 
  
 
–
 
  
 
5,517
 
       4,035       3,768       –       7,803  
High risk
  
 
648
 
  
 
3,202
 
  
 
–
 
  
 
3,850
 
       601       2,583       –       3,184  
Not rated
(3)
  
 
34,273
 
  
 
4,274
 
  
 
–
 
  
 
38,547
 
       12,493       1,180       –       13,673  
Impaired
  
 
–
 
  
 
–
 
  
 
444
 
  
 
444
 
         –       –       437       437  
Total
  
$
110,593
 
  
$
10,902
 
  
$
444
 
  
$
121,939
 
       $ 104,665     $ 10,243     $ 437     $ 115,345  
Loans outstanding – Credit cards
                  
Low risk
  
$
18,375
 
  
$
652
 
  
$
–
 
  
$
19,027
 
     $ 18,279     $ 161     $ –     $ 18,440  
Medium risk
  
 
1,434
 
  
 
1,509
 
  
 
–
 
  
 
2,943
 
       2,123       2,291       –       4,414  
High risk
  
 
54
 
  
 
2,162
 
  
 
–
 
  
 
2,216
 
       70       2,423       –       2,493  
Not rated
(3)
  
 
3,112
 
  
 
1,021
 
  
 
–
 
  
 
4,133
 
         1,133       309       –       1,442  
Total
  
$
22,975
 
  
$
5,344
 
  
$
–
 
  
$
28,319
 
       $ 21,605     $ 5,184     $ –     $ 26,789  
Loans outstanding – Small business
                  
Low risk
  
$
11,337
 
  
$
539
 
  
$
–
 
  
$
11,876
 
     $ 10,628     $ 595     $ –     $ 11,223  
Medium risk
  
 
2,401
 
  
 
732
 
  
 
–
 
  
 
3,133
 
       2,550       924       –       3,474  
High risk
  
 
251
 
  
 
1,368
 
  
 
–
 
  
 
1,619
 
       259       1,422       –       1,681  
Not rated
(3)
  
 
7
 
  
 
–
 
  
 
–
 
  
 
7
 
       8       –       –       8  
Impaired
  
 
–
 
  
 
–
 
  
 
510
 
  
 
510
 
         –       –       411       411  
Total
  
$
13,996
 
  
$
2,639
 
  
$
510
 
  
$
17,145
 
       $ 13,445     $ 2,941     $ 411     $ 16,797  
Undrawn loan commitments – Retail
                  
Low risk
  
$
305,554
 
  
$
430
 
  
$
–
 
  
$
305,984
 
     $ 293,300     $ 3,700     $ –     $ 297,000  
Medium risk
  
 
14,175
 
  
 
218
 
  
 
–
 
  
 
14,393
 
       12,451       427       –       12,878  
High risk
  
 
1,094
 
  
 
1,709
 
  
 
–
 
  
 
2,803
 
       805       758       –       1,563  
Not rated
(3)
  
 
16,172
 
  
 
522
 
  
 
–
 
  
 
16,694
 
         13,964       274       –       14,238  
Total
  
$
336,995
 
  
$
2,879
 
  
$
–
 
  
$
339,874
 
       $ 320,520     $ 5,159     $ –     $ 325,679  
Wholesale – Loans outstanding
                  
Investment grade
  
$
154,411
 
  
$
1,776
 
  
$
–
 
  
$
156,187
 
     $ 130,322     $ 2,117     $ –     $ 132,439  
Non-investment grade
  
 
210,044
 
  
 
30,188
 
  
 
–
 
  
 
240,232
 
       207,239       26,399       –       233,638  
Not rated
(3)
  
 
17,909
 
  
 
466
 
  
 
–
 
  
 
18,375
 
       14,714       503       –       15,217  
Impaired
  
 
–
 
  
 
–
 
  
 
7,001
 
  
 
7,001
 
         –       –       6,153       6,153  
   
 
382,364
 
  
 
32,430
 
  
 
7,001
 
  
 
421,795
 
         352,275       29,019        6,153       387,447  
Items not subject to impairment
(4)
                          
 
12,544
 
                                 9,724  
Total
                          
$
434,339
 
                               $ 397,171  
Undrawn loan commitments – Wholesale
                  
Investment grade
  
$
410,317
 
  
$
1,580
 
  
$
–
 
  
$
411,897
 
     $ 393,167     $ 1,593     $ –     $ 394,760  
Non-investment grade
  
 
180,908
 
  
 
21,125
 
  
 
–
 
  
 
202,033
 
       182,223       16,158       –       198,381  
Not rated
(3)
  
 
2,199
 
  
 
39
 
  
 
–
 
  
 
2,238
 
         1,407       21       –       1,428  
Total
  
$
593,424
 
  
$
22,744
 
  
$
     –
 
  
$
616,168
 
       $  576,797     $  17,772     $ –     $  594,569  
 
(1)
Includes $236 million of purchased or originated credit-impaired loans (October 31, 2025 – $195 million).
(2)
During the second and third quarters of 2026, we applied changes to our Retail risk rating models. These changes were applied prospectively and are reflected in the July 31, 2026 credit risk exposures. Certain Personal and Credit cards portfolios no longer use internal risk ratings in the measurement of expected credit losses and therefore were presented in Not rated.
(3)
In certain cases where an internal risk rating is not assigned, we use other approved credit risk assessment or rating methodologies, policies and tools to manage our credit risk.
(4)
Items not subject to impairment are loans held at FVTPL.
 
Loans past due but not impaired
(1), (2)
 
      As at  
   
July 31, 2026
         October 31, 2025  
(Millions of Canadian dollars)  
30 to 89 days
    
90 days
and greater
    
Total
          30 to 89 days     90 days
and greater		     Total  
Retail
  
$
2,558
 
  
$
332
 
  
$
2,890
 
     $ 2,634     $ 323     $ 2,957  
Wholesale
  
 
1,063
 
     51    
 
1,114
 
         1,143       7       1,150  
   
$
3,621
 
  
$
383
 
  
$
4,004
 
       $ 3,777     $ 330     $  4,107  
 
(1)
Excludes loans less than 30 days past due as they are not generally representative of the borrowers’ ability to meet their payment obligations.
(2)
Amounts presented may include loans past due as a result of administrative processes, such as mortgage loans on which payments are restrained pending payout due to sale or refinancing. Past due loans arising from administrative processes are not representative of the borrowers’ ability to meet their payment obligations.