NOTE 8
LOANS, IMPAIRED LOANS, AND ALLOWANCE FOR CREDIT LOSSES
The following table presents the Bank’s loans, impaired loans, and related allowance for loan losses as at October 31.
Loans, Impaired Loans, and Allowance for Loan Losses (millions of Canadian dollars)
Gross Loans Neither
past due Past due nor
but not Residential mortgages3,4,5
Consumer instalment and other personal6 Credit card
Business and government3,4,5
Debt securities classified as loans Acquired credit-impaired loans
Total Residential mortgages3,4,5
Consumer instalment and other personal6 Credit card
Business and government3,4,5
Debt securities classified as loans Acquired credit-impaired loans
Total
1 Excludes allowance for off-balance sheet positions. 2
3 5
As at October 31, 2016, impaired loans exclude $1.1 billion (October 31, 2015 – $1.2 billion) of gross impaired debt securities classified as loans.
Excludes trading loans with a fair value of $12 billion as at October 31, 2016 (October 31, 2015 – $11 billion), and amortized cost of $11 billion as at October 31, 2016 (October 31, 2015 – $10 billion).
4
Includes insured mortgages of $118 billion as at October 31, 2016 (October 31, 2015 – $126 billion).
FORECLOSED ASSETS
Foreclosed assets are repossessed non-financial assets where the Bank gains title, ownership, or possession of individual properties, such as real estate properties, which are managed for sale in an orderly manner with the proceeds used to reduce or repay any outstanding debt. The Bank does not generally occupy foreclosed properties for its business use. The Bank predominantly relies on third-party appraisals to determine the
Impaired Loans1 (millions of Canadian dollars)
Related Unpaid
principal balance2
Residential mortgages
Consumer instalment and other personal
Credit card
Business and government Total
$ 909 1,557
374 984
$ 3,824
1 Excludes ACI loans and debt securities classified as loans. 2 Represents contractual amount of principal owed.
Carrying value
$ 852 1,392
374 891
$ 3,509
October 31, 2016 Average
allowance for credit losses
$ 49 166
290 219
$ 724 gross
impaired loans
$ 844 1,492
345 883
$ 3,564 Unpaid
principal balance2
$ 844 1,437
306 978
$ 3,565
Carrying value
$ 786 1,278
306 874
$ 3,244 Related
allowance for credit losses
$ 47 136
217 184
$ 584 6
$ 208,802 $ 2,343 128,123 28,148
163,840
5,923 1,761 1,990
$ 528,913 $ 12,017
impaired impaired Impaired2 $ 213,586 $ 2,523
136,650 29,715
191,229
6,390 1,825 1,454
$ 571,180 $ 12,192 Total
$ 852 $ 216,961 1,392 144,432 374
31,914 891 193,574
$ 3,509 $ 586,881 1,674
974 $ 589,529
$ 786 $ 211,931 1,278 135,324 306
30,215 874 166,704
$ 3,244 $ 544,174 2,187
1,414 $ 547,775
specific $ –
– –
189
$ 189 206
4 $ 399
$ – – –
156
$ 156 207
6 $ 369
Counter- insignificant party
Individually impaired
Allowance for loan losses1 Incurred
Total identified $
166 290 30
$ 535 –
58 $ 593
$ 47 136 217 28
$ 428 –
77 $ 505
loans loan losses $ 49
but not allowance for loan losses
48 $
656 924
1,198 – 1,214
261 62
Net loans
97 $ 216,864 822 143,610 30,700
1,417 192,157
$ 2,826 $ 3,550 $ 583,331 55
1,413 912
$ 2,881 $ 3,873 $ 585,656 October 31, 2015
$ 58
632 897 916
$ 2,503 57
– $ 2,560
$ 105 $ 211,826 768 134,556 29,101
1,114
1,100 165,604 $ 3,087 $ 541,087 264
83
1,923 1,331
$ 3,434 $ 544,341
As at October 31, 2016, impaired loans with a balance of $448 million did not have a related allowance for loan losses (October 31, 2015 – $419 million). An allowance was not required for these loans as the balance relates to loans that are insured or loans where the realizable value of the collateral exceeded the loan amount.
Includes Canadian government-insured real estate personal loans of $18 billion as at October 31, 2016 (October 31, 2015 – $21 billion).
As at October 31, 2016
carrying value of foreclosed assets. Foreclosed assets held for sale were $106 million as at October 31, 2016 (October 31, 2015 – $134 million), and were recorded in Other assets on the Consolidated Balance Sheet.
The following table presents information related to the Bank’s impaired loans as at October 31.
As at
October 31, 2015 Average
gross
impaired loans
$ 790 1,045
294 866
$ 2,995
152 TD BANK GROUP ANNUAL REPORT 2016 FINANCIAL RESULTS
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212