SOVEREIGN RISK


The following table provides a summary of the Bank’s credit exposure to certain European countries, including Greece, Italy, Ireland, Portugal, and Spain (GIIPS).


T ABLE 34 EXPOSURE TO EUROPE – Total Net Exposure by Country and Counterparty (millions of Canadian dollars) Loans and commitments1 Country


GIIPS Greece


Italy Ireland


Portugal Spain


Total GIIPS


Rest of Europe Belgium


Finland France


Germany


Netherlands Sweden


Switzerland


United Kingdom Other6


Total Rest of Europe Total Europe


GIIPS Greece


Italy Ireland


Portugal Spain


Total GIIPS


Rest of Europe Belgium


Finland France


Germany


Netherlands Sweden


Switzerland


United Kingdom Other6


Total Rest of Europe Total Europe


1 Corporate Sovereign Financial Derivatives, repos, and securities lending2 Total Corporate Sovereign Financial Trading and investment portfolio3,4 Total Corporate Sovereign Financial


Total Exposure5 October 31, 2016


As at Total


$


– $ – – – –


–


268 7


437


1,037 588 –


1,125 1,787 –


5,249 – $


168 – –


105 273


– 64


765 644 555 64 58


3,009 4


5,163


– $ 6 – –


48 54


5 13


169 55


271 222 125 37 7


– $


174 – –


153 327


273 84


1,371 1,736 1,414 286


1,308 4,833 11


904 11,316


– $ –


45 – –


45


166 –


96


464 604 –


75


1,000 60


2,465


– $ – – – –


–


45 21


863 738 240 247 –


550 317


3,021


– $ 9


592 26 52


679 21 100


1,582 709 367 76


802


4,823 683


9,163


– 9


637 26 52


724


232 121


2,541 1,911 1,211 323 877


6,373 1,060


14,649 $ 5,249 $ 5,436 $ 958 $ 11,643 $ 2,510 $ 3,021 $ 9,842 $ 15,373


$ – $ 22 – 1 2


25


5 –


108 51


158 7


– $


36 – – –


36 94


1,379 6,734


186 10,779 16 7


4,271 1,359 –


1,765 1,366


538 27,747


– $ 1 – – –


1


– –


262 506


451 168


– $


59 – 1 2


62 99


1,379 7,104


19 10,984 4,793 1,817 219


3,429 571


5,406


5,352 1,944


33,691 –


242 637 27


207 1,113 604 1,584


11,016 14,631 7,418 2,426 2,404


16,558 3,015


59,656


$ 563 $ 27,783 $ 5,407 $ 33,753 $ 60,769 October 31, 2015


$


– $ – – – –


–


4,794 7


469


1,451 457 –


1,103 2,161 118


10,560 – $


203 – –


63 266 –


65 –


1,094 295 30


181


2,434 15


4,114


– $ 4 – –


47 51


40 13


205 100 517 167 216 128 8


1,394 – $


207 – –


110 317


4,834 85


674


2,645 1,269 197


1,500 4,723 141


16,068


– $ – – – –


–


98 –


97


507 641 –


22


750 63


2,178


Exposures include interest-bearing deposits with banks and are presented net of impairment charges where applicable. There were no impairment charges for European exposures as at October 31, 2016, or October 31, 2015.


2


– $ – – – –


–


32 23


617 754 330 27 –


764 113


2,660


– $ 3


375 –


37 415 1 64


1,178 738 223 62


707


3,982 356


7,311


– 3


375 –


37 415


131 87


1,892 1,999 1,194 89


729


5,496 532


12,149


$ 10,560 $ 4,380 $ 1,445 $ 16,385 $ 2,178 $ 2,660 $ 7,726 $ 12,564 4


5


Exposures are calculated on a fair value basis and are net of collateral. Total market value of pledged collateral is $6.9 billion for GIIPS (October 31, 2015 – $5.6 billion) and $24.7 billion for the rest of Europe (October 31, 2015 – $41.9 billion). Derivatives are presented as net exposures where there is an International Swaps and Derivatives Association (ISDA) master netting agreement.


3


Trading portfolio exposures are net of eligible short positions. Deposits of $1.3 billion (October 31, 2015 – $1.5 billion) are included in the trading and investment portfolio.


6


$ – $ 1 – – 7


8


6 –


29 88 14 28 11


114 9


– $


25 – – –


25 – 952


3,339 9,442 4,189 458 –


548 1,235 299 20,163


– $ 2 – – –


2


– –


176 127 464 441 211


4,002 137


5,558 – $


28 – – 7


35 6 952


3,544 9,657 4,667 927 222


4,664 1,381


26,020 –


238 375 –


154 767


4,971 1,124 6,110


14,301 7,130 1,213 2,451


14,883 2,054


54,237 $ 307 $ 20,188 $ 5,560 $ 26,055 $ 55,004


The fair values of the GIIPS exposures in Level 3 in the trading and investment portfolio were not significant as at October 31, 2016, and October 31, 2015.


The reported exposures do not include $0.3 billion of protection the Bank purchased through CDS (October 31, 2015 – $0.4 billion).


Other European exposure is distributed across 9 countries (October 31, 2015 – 10 countries), each of which has a net exposure including loans and commitments, derivatives, repos and securities lending, and trading and investment portfolio below $1 billion as at October 31, 2016, and October 31, 2015.


54 TD BANK GROUP ANNUAL REPORT 2016 MANAGEMENT’S DISCUSSION AND ANALYSIS


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