Cover Page
Cover Page | 12 Months Ended |
Oct. 31, 2019shares | |
Cover [Abstract] | |
Document Type | 40-F |
Amendment Flag | false |
Document Period End Date | Oct. 31, 2019 |
Document Fiscal Year Focus | 2019 |
Document Fiscal Period Focus | FY |
Trading Symbol | BMO |
Entity Registrant Name | BANK OF MONTREAL /CAN/ |
Entity Central Index Key | 0000927971 |
Current Fiscal Year End Date | --10-31 |
Entity Current Reporting Status | Yes |
Entity Emerging Growth Company | false |
Entity Common Stock, Shares Outstanding | 639,232,276 |
Entity Interactive Data Current | Yes |
Security Exchange Name | NYSE |
Title of 12(b) Security | Common Shares |
Entity Address, State or Province | ON |
Entity Address, Country | CA |
Consolidated Statement of Incom
Consolidated Statement of Income - CAD ($) $ in Millions | 12 Months Ended | ||||
Oct. 31, 2019 | [1] | Oct. 31, 2018 | Oct. 31, 2017 | ||
Interest, Dividend and Fee Income | |||||
Loans | $ 19,824 | $ 16,275 | $ 13,564 | ||
Securities (Note 3) | [2] | 5,541 | 4,119 | 3,525 | |
Deposits with banks | 787 | 641 | 324 | ||
Interest, Dividend and Fee Income | 26,152 | 21,035 | 17,413 | ||
Interest Expense | |||||
Deposits | 8,616 | 6,080 | 3,894 | ||
Subordinated debt | 279 | 226 | 155 | ||
Other liabilities | 4,369 | 3,291 | 2,089 | ||
Interest Expense | 13,264 | 9,597 | 6,138 | ||
Net Interest Income | 12,888 | 11,438 | 11,275 | ||
Non-Interest Revenue | |||||
Securities commissions and fees | 1,023 | 1,025 | 964 | ||
Deposit and payment service charges | 1,204 | 1,134 | 1,109 | ||
Trading revenues | 298 | 705 | 84 | ||
Lending fees | 1,181 | 997 | 917 | ||
Card fees | 437 | 428 | 329 | ||
Investment management and custodial fees | 1,747 | 1,749 | 1,627 | ||
Mutual fund revenues | 1,419 | 1,473 | 1,411 | ||
Underwriting and advisory fees | 986 | 943 | 1,044 | ||
Securities gains, other than trading (Note 3) | 249 | 239 | 171 | ||
Foreign exchange gains, other than trading | 166 | 182 | 191 | ||
Insurance revenue | 3,183 | 1,879 | 2,070 | ||
Investments in associates and joint ventures | 151 | 167 | 386 | ||
Other | 551 | 546 | 529 | ||
Non-Interest Revenue | 12,595 | 11,467 | 10,832 | ||
Total Revenue | 25,483 | 22,905 | 22,107 | ||
Provision for Credit Losses (Notes 1 and 4) | 872 | 662 | 746 | ||
Insurance Claims, Commissions and Changes in Policy Benefit Liabilities (Note 14) | 2,709 | 1,352 | 1,538 | ||
Non-Interest Expense | |||||
Employee compensation (Notes 20 and 21) | 8,423 | 7,461 | 7,468 | ||
Premises and equipment (Note 9) | 2,988 | 2,753 | 2,491 | ||
Amortization of intangible assets (Note 11) | 554 | 503 | 485 | ||
Travel and business development | 545 | 519 | 540 | ||
Communications | 296 | 282 | 286 | ||
Professional fees | 568 | 572 | 569 | ||
Other | 1,256 | 1,387 | 1,353 | ||
Non-Interest Expense | 14,630 | 13,477 | 13,192 | ||
Income Before Provision for Income Taxes | 7,272 | 7,414 | 6,631 | ||
Provision for income taxes (Note 22) | 1,514 | 1,961 | 1,292 | ||
Net Income | 5,758 | 5,453 | 5,339 | ||
Attributable to: | |||||
Equity holders of the bank | 5,758 | 5,453 | 5,337 | ||
Non-controlling interest in subsidiaries | 2 | ||||
Net Income | $ 5,758 | $ 5,453 | $ 5,339 | ||
Earnings Per Common Share (Canadian $) (Note 23) | |||||
Basic | $ 8.68 | $ 8.19 | $ 7.93 | ||
Diluted | 8.66 | 8.17 | 7.90 | ||
Common shares [member] | |||||
Earnings Per Common Share (Canadian $) (Note 23) | |||||
Dividends per common share | $ 4.06 | $ 3.78 | $ 3.56 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). | ||||
[2] | Includes interest income on securities measured at fair value through other comprehensive income and amortized cost, calculated using the effective interest rate method, of $1,853 million for the year ended October 31, 2019 ($1,290 million for the year ended October 31, 2018). |
Consolidated Statement of Inc_2
Consolidated Statement of Income (Parenthetical) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Operating Income Expenses [abstract] | ||
Interest income, calculated using the effective interest rate method | $ 1,853 | $ 1,290 |
Consolidated Statement of Compr
Consolidated Statement of Comprehensive Income - CAD ($) $ in Millions | 12 Months Ended | ||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |||
Statement [Line Items] | |||||
Net Income | $ 5,758 | [1] | $ 5,453 | $ 5,339 | |
Other Comprehensive Income (Loss), net of taxes | |||||
Unrealized gains on available-for-sale securities arising during the year | [2] | 95 | |||
Reclassification to earnings of (gains) in the year | [3] | (72) | [1] | (65) | (87) |
Other comprehensive income net of tax available for sale financial assets | 340 | [1] | (316) | 8 | |
Net change in unrealized gains (losses) on cash flow hedges | |||||
Gains (losses) on derivatives designated as cash flow hedges arising during the year | [4] | 1,444 | [1] | (1,228) | (839) |
Reclassification to earnings of losses on derivatives designated as cash flow hedges | [5] | 143 | [1] | 336 | 61 |
Other comprehensive income net of tax cash flow hedges | 1,587 | [1] | (892) | (778) | |
Net gains (losses) on translation of net foreign operations | |||||
Unrealized gains (losses) on translation of net foreign operations | (11) | [1] | 417 | (885) | |
Unrealized gains (losses) on hedges of net foreign operations | [6] | (13) | [1] | (155) | 23 |
Other comprehensive income, net of taxes, translation of net foreign operations | (24) | [1] | 262 | (862) | |
Items that will not be reclassified to net income | |||||
Gains (losses) on remeasurement of pension and other employee future benefit plans | [7] | (552) | [1] | 261 | 420 |
Gains (losses) on remeasurement of own credit risk on financial liabilities designated at fair value (Note 1) | [8] | 75 | [1] | (24) | (148) |
Items that will not be reclassified to net income | (476) | [1] | 237 | 272 | |
Other Comprehensive Income (Loss), net of taxes | 1,427 | [1] | (709) | (1,360) | |
Total Comprehensive Income | 7,185 | [1] | 4,744 | 3,979 | |
Attributable to: | |||||
Equity holders of the bank | 7,185 | [1] | 4,744 | 3,977 | |
Non-controlling interest in subsidiaries | 2 | ||||
Total Comprehensive Income | 7,185 | [1] | 4,744 | $ 3,979 | |
Debt securities [member] | |||||
Other Comprehensive Income (Loss), net of taxes | |||||
Unrealized gains (losses) on fair value through OCI debt securities arising during the year | [9] | 412 | [1] | $ (251) | |
Equity Securitie [Member] | |||||
Other Comprehensive Income (Loss), net of taxes | |||||
Unrealized gains (losses) on fair value through OCI debt securities arising during the year | [1],[10] | $ 1 | |||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). | ||||
[2] | Net of income tax (provision) of na, na and $(21) million for the year ended, respectively. | ||||
[3] | Net of income tax provision of $26 million, $23 million and $36 million for the year ended, respectively. | ||||
[4] | Net of income tax (provision) recovery of $(521) million, $432 million and $322 million for the year ended, respectively. | ||||
[5] | Net of income tax (recovery) of $(51) million, $(121) million and $(21) million for the year ended, respectively. | ||||
[6] | Net of income tax (provision) recovery of $4 million, $56 million and $(8) million for the year ended, respectively. | ||||
[7] | Net of income tax (provision) recovery of $196 million, $(111) million and $(157) million for the year ended, respectively. | ||||
[8] | Net of income tax (provision) recovery of $(27) million, $6 million and $53 million for the year ended, respectively. | ||||
[9] | Net of income tax (provision) recovery of $(140) million, $69 million and na for the year ended, respectively. | ||||
[10] | Net of income tax (provision) of $(1) million, $nil and na for the year ended, respectively. |
Consolidated Statement of Com_2
Consolidated Statement of Comprehensive Income (Parenthetical) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Statement [Line Items] | |||
Net of income tax (provision), unrealized gains on available-for-sale securities | $ (21) | ||
Net of income tax provision, reclassification to earnings of (gains) losses | $ 26 | $ 23 | 36 |
Net of income tax (provision) recovery, gains (losses) on derivatives designated as cash flow hedges | (521) | 432 | 322 |
Net of income tax provision (recovery), reclassification to earnings of losses on derivatives designated as cash flow hedges | (51) | (121) | (21) |
Net of income tax (provision) recovery, unrealized gains on hedges of net foreign operations | 4 | 56 | (8) |
Net of income tax (provision) recovery, gains (losses) on remeasurement of pension and other employee future benefit plans | 196 | (111) | (157) |
Net of income tax recovery, gains (losses) on remeasurement of own credit risk on financial liabilities designated at fair value | (27) | 6 | $ 53 |
Debt securities [member] | |||
Statement [Line Items] | |||
Net of income tax recovery, unrealized gains on fair value through OCI securities | (140) | 69 | |
Equity Securitie [Member] | |||
Statement [Line Items] | |||
Net of income tax recovery, unrealized gains on fair value through OCI securities | $ (1) | $ 0 |
Consolidated Balance Sheet
Consolidated Balance Sheet - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | ||
Assets | ||||
Cash and Cash Equivalents | [1] | $ 48,803 | $ 42,142 | |
Interest Bearing Deposits with Banks | 7,987 | [1] | 8,305 | |
Securities | ||||
Trading | 85,903 | [1] | 99,697 | |
Fair value through profit or loss | 13,704 | [1] | 11,611 | |
Fair value through other comprehensive income | 64,515 | [1] | 62,440 | |
Debt securities at amortized cost | 24,472 | [1] | 6,485 | |
Other | 844 | [1] | 702 | |
Securities, net | 189,438 | [1] | 180,935 | |
Securities Borrowed or Purchased Under Resale Agreements | 104,004 | [1] | 85,051 | |
Loans | ||||
Residential mortgages | 123,740 | [1] | 119,620 | |
Consumer instalment and other personal | 67,736 | [1] | 63,225 | |
Credit cards | 8,859 | [1] | 8,329 | |
Business and government | 227,609 | [1] | 194,456 | |
Loans gross of allowance for loan losses | 427,944 | [1] | 385,630 | |
Allowance for credit losses | (1,850) | [1] | (1,639) | |
Loans,net | 426,094 | [1] | 383,991 | |
Other Assets | ||||
Derivative instruments | 22,144 | [1] | 25,422 | |
Customers' liability under acceptances | 23,593 | [1] | 18,585 | |
Premises and equipment | 2,055 | [1] | 1,986 | |
Goodwill | 6,340 | [1] | 6,373 | |
Intangible assets | 2,424 | [1] | 2,272 | |
Current tax assets | 1,165 | [1] | 1,515 | |
Deferred tax assets | 1,568 | [1] | 2,039 | |
Other | 16,580 | [1] | 14,677 | |
Other assets | 75,869 | [1] | 72,869 | |
Total Assets | 852,195 | [1] | 773,293 | |
Liabilities and Equity | ||||
Deposits | 568,143 | [1] | 520,928 | |
Other Liabilities | ||||
Derivative instruments | 23,598 | [1] | 23,629 | |
Acceptances | 23,593 | [1] | 18,585 | |
Securities sold but not yet purchased | 26,253 | [1] | 28,804 | |
Securities lent or sold under repurchase agreements | 86,656 | [1] | 66,684 | |
Securitization and structured entities' liabilities | 27,159 | [1] | 25,051 | |
Current tax liabilities | 55 | [1] | 50 | |
Deferred tax liabilities | 60 | [1] | 74 | |
Other | 38,607 | [1] | 36,985 | |
Other liabilities | 225,981 | [1] | 199,862 | |
Subordinated debt | 6,995 | [1] | 6,782 | |
Equity | ||||
Contributed surplus | 303 | [1] | 300 | |
Retained earnings | 28,725 | [1] | 25,850 | |
Accumulated other comprehensive income | 3,729 | [1] | 2,302 | |
Total Equity | 51,076 | [1] | 45,721 | |
Total Liabilities and Equity | 852,195 | [1] | 773,293 | |
Preferred shares [member] | ||||
Equity | ||||
Issued capital | 5,348 | [1] | 4,340 | |
Total Equity | [1] | 5,348 | 4,340 | |
Common shares [member] | ||||
Equity | ||||
Issued capital | 12,971 | [1] | 12,929 | |
Total Equity | [1] | $ 12,971 | $ 12,929 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Consolidated Statement of Chang
Consolidated Statement of Changes in Equity - CAD ($) $ in Millions | Total | Share premium [member] | Retained earnings [member] | Accumulated other comprehensive income (loss) on Fair Value through OCI Securities, net of taxes [member] | Accumulated other comprehensive income (loss) on Fair Value through OCI Securities, net of taxes [member]Debt securities [member] | Accumulated other comprehensive Income (Loss) on derivatives designated as Cash Flow Hedges, net of taxes [member] | Accumulated other comprehensive income on translation of net foreign operations, net of taxes [member] | Accumulated other comprehensive income (loss) on pension and other employee future benefit plans, net of taxes [member] | Accumulated other comprehensive income (loss) on own credit risk on financial liabilities designated at fair value, net of taxes [member] | Total accumulated other comprehensive income [member] | Total equity [member] | Non-controlling interest in subsidiaries [member] | Preferred shares [member] | Preferred shares [member]Retained earnings [member] | Common shares [member] | Common shares [member]Retained earnings [member] | |||||||||||
Balance at beginning of year at Oct. 31, 2016 | $ 294 | $ 21,207 | $ 48 | [1] | $ 596 | $ 4,327 | $ (512) | $ (33) | $ 24 | $ 3,840 | $ 12,539 | ||||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||
Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan (Note 16) | 448 | ||||||||||||||||||||||||||
Issued during the year | 900 | ||||||||||||||||||||||||||
Stock option expense, net of options exercised (Note 20) | 6 | ||||||||||||||||||||||||||
Gains (losses) on derivatives designated as cash flow hedges arising during the year (Note 8) | $ (839) | [2] | (839) | ||||||||||||||||||||||||
Unrealized gains (losses) on translation of net foreign operations | (885) | (885) | |||||||||||||||||||||||||
Gains (losses) on remeasurement of pension and other employee future benefit plans (Note 21) | 420 | [3] | 420 | ||||||||||||||||||||||||
Gains (losses) on remeasurement of own credit risk on financial liabilities designated at fair value | (148) | [4] | (148) | ||||||||||||||||||||||||
Net income attributable to equity holders of the bank | 5,337 | 5,337 | |||||||||||||||||||||||||
Dividends | $ (184) | $ (2,312) | |||||||||||||||||||||||||
Issued under the Stock Option Plan | 146 | ||||||||||||||||||||||||||
Redeemed during the year | (500) | ||||||||||||||||||||||||||
Reclassification to earnings of losses on derivatives designated as cash flow hedges in the year | 61 | [5] | 61 | ||||||||||||||||||||||||
Unrealized gains (losses) on hedges of net foreign operations | 23 | [6] | 23 | ||||||||||||||||||||||||
Equity issue expense | (9) | ||||||||||||||||||||||||||
Net income attributable to non-controlling interest | 2 | 2 | |||||||||||||||||||||||||
Redemption/purchase of non-controlling interest | (25) | ||||||||||||||||||||||||||
Repurchased for cancellation | (101) | ||||||||||||||||||||||||||
Unrealized gains on available-for-sale securities arising during the year | 95 | [7] | 95 | [1] | |||||||||||||||||||||||
Common shares repurchased for cancellation | (339) | ||||||||||||||||||||||||||
Reclassification to earnings of (gains) during the year | (87) | [8] | (87) | [1] | |||||||||||||||||||||||
Other | 7 | $ (1) | |||||||||||||||||||||||||
Balance at end of year at Oct. 31, 2017 | 44,345 | 307 | 23,700 | 56 | [1] | (182) | 3,465 | (92) | (181) | $ 3,066 | $ 44,345 | 4,240 | 13,032 | ||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||
Impact from adopting IFRS 9 (Note 28) | 44 | ||||||||||||||||||||||||||
Balance at beginning of year at Oct. 31, 2017 | 44,345 | 307 | 23,700 | 56 | [1] | (182) | 3,465 | (92) | (181) | 3,066 | 44,345 | 4,240 | 13,032 | ||||||||||||||
Statement [Line Items] | |||||||||||||||||||||||||||
Impact from adopting IFRS 9 (Note 28) | 99 | (55) | [1] | ||||||||||||||||||||||||
Issued during the year | 400 | ||||||||||||||||||||||||||
Stock option expense, net of options exercised (Note 20) | (12) | ||||||||||||||||||||||||||
Gains (losses) on derivatives designated as cash flow hedges arising during the year (Note 8) | (1,228) | [2] | (1,228) | ||||||||||||||||||||||||
Unrealized gains (losses) on translation of net foreign operations | 417 | 417 | |||||||||||||||||||||||||
Gains (losses) on remeasurement of pension and other employee future benefit plans (Note 21) | 261 | [3] | 261 | ||||||||||||||||||||||||
Gains (losses) on remeasurement of own credit risk on financial liabilities designated at fair value | (24) | [4] | (24) | ||||||||||||||||||||||||
Net income attributable to equity holders of the bank | 5,453 | 5,453 | |||||||||||||||||||||||||
Dividends | (184) | (2,424) | |||||||||||||||||||||||||
Issued under the Stock Option Plan | 99 | ||||||||||||||||||||||||||
Unrealized gains (losses) on fair value through OCI debt securities arising during the year | [1] | $ (251) | |||||||||||||||||||||||||
Redeemed during the year | (300) | ||||||||||||||||||||||||||
Reclassification to earnings of losses on derivatives designated as cash flow hedges in the year | 336 | [5] | 336 | ||||||||||||||||||||||||
Unrealized gains (losses) on hedges of net foreign operations | (155) | [6] | (155) | ||||||||||||||||||||||||
Equity issue expense | (5) | ||||||||||||||||||||||||||
Repurchased for cancellation | (202) | ||||||||||||||||||||||||||
Common shares repurchased for cancellation | (789) | ||||||||||||||||||||||||||
Reclassification to earnings of (gains) during the year | (65) | [8] | (65) | [1] | |||||||||||||||||||||||
Other | 5 | ||||||||||||||||||||||||||
Balance at end of year at Oct. 31, 2018 | 45,721 | 300 | [9] | 25,850 | [9] | (315) | [1],[9] | (1,074) | [9] | 3,727 | [9] | 169 | [9] | (205) | [9] | 2,302 | 45,721 | 4,340 | [9] | 12,929 | [9] | ||||||
Statement [Line Items] | |||||||||||||||||||||||||||
Issued during the year | [9] | 1,008 | |||||||||||||||||||||||||
Gains (losses) on derivatives designated as cash flow hedges arising during the year (Note 8) | [9] | 1,444 | [2] | 1,444 | |||||||||||||||||||||||
Unrealized gains (losses) on translation of net foreign operations | [9] | (11) | (11) | ||||||||||||||||||||||||
Gains (losses) on remeasurement of pension and other employee future benefit plans (Note 21) | [9] | (552) | [3] | (552) | |||||||||||||||||||||||
Gains (losses) on remeasurement of own credit risk on financial liabilities designated at fair value | [9] | 75 | [4] | 75 | |||||||||||||||||||||||
Net income attributable to equity holders of the bank | [9] | 5,758 | 5,758 | ||||||||||||||||||||||||
Dividends | [9] | $ (211) | $ (2,594) | ||||||||||||||||||||||||
Issued under the Stock Option Plan | [9] | 62 | |||||||||||||||||||||||||
Unrealized gains (losses) on fair value through OCI debt securities arising during the year | [1],[9] | $ 412 | |||||||||||||||||||||||||
Unrealized gains on fair value through OCI equity securities arising during the year | [1],[9] | 1 | |||||||||||||||||||||||||
Reclassification to earnings of losses on derivatives designated as cash flow hedges in the year | [9] | 143 | [5] | 143 | |||||||||||||||||||||||
Unrealized gains (losses) on hedges of net foreign operations | [9] | (13) | [6] | (13) | |||||||||||||||||||||||
Equity issue expense | [9] | (8) | |||||||||||||||||||||||||
Repurchased for cancellation | [9] | (20) | |||||||||||||||||||||||||
Common shares repurchased for cancellation | [9] | (70) | |||||||||||||||||||||||||
Reclassification to earnings of (gains) during the year | [9] | (72) | [8] | (72) | [1] | ||||||||||||||||||||||
Other | [9] | 3 | |||||||||||||||||||||||||
Balance at end of year at Oct. 31, 2019 | [9] | $ 51,076 | $ 303 | $ 28,725 | $ 26 | [1] | $ 513 | $ 3,703 | $ (383) | $ (130) | $ 3,729 | $ 51,076 | $ 5,348 | $ 12,971 | |||||||||||||
[1] | Fiscal 2017 represents available-for-sale securities (Note 1). | ||||||||||||||||||||||||||
[2] | Net of income tax (provision) recovery of $(521) million, $432 million and $322 million for the year ended, respectively. | ||||||||||||||||||||||||||
[3] | Net of income tax (provision) recovery of $196 million, $(111) million and $(157) million for the year ended, respectively. | ||||||||||||||||||||||||||
[4] | Net of income tax (provision) recovery of $(27) million, $6 million and $53 million for the year ended, respectively. | ||||||||||||||||||||||||||
[5] | Net of income tax (recovery) of $(51) million, $(121) million and $(21) million for the year ended, respectively. | ||||||||||||||||||||||||||
[6] | Net of income tax (provision) recovery of $4 million, $56 million and $(8) million for the year ended, respectively. | ||||||||||||||||||||||||||
[7] | Net of income tax (provision) of na, na and $(21) million for the year ended, respectively. | ||||||||||||||||||||||||||
[8] | Net of income tax provision of $26 million, $23 million and $36 million for the year ended, respectively. | ||||||||||||||||||||||||||
[9] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Consolidated Statement of Cash
Consolidated Statement of Cash Flows - CAD ($) $ in Millions | 12 Months Ended | ||||
Oct. 31, 2019 | [1] | Oct. 31, 2018 | Oct. 31, 2017 | ||
Cash Flows from Operating Activities | |||||
Net Income | $ 5,758 | $ 5,453 | $ 5,339 | ||
Adjustments to determine net cash flows provided by (used in) operating activities | |||||
Provision on securities, other than trading (Note 3) | 1 | 1 | 7 | ||
Net (gain) on securities, other than trading (Note 3) | (250) | (240) | (178) | ||
Net (increase) decrease in trading securities | 13,816 | (2,650) | (16,237) | ||
Provision for credit losses (Note 4) | 872 | 662 | 746 | ||
Decrease in derivative asset | 6,902 | 6,069 | 15,544 | ||
(Decrease) in derivative liability | (3,774) | (7,481) | (14,923) | ||
Depreciation of premises and equipment (Note 9) | 435 | 400 | 391 | ||
Amortization of other assets | 216 | 224 | 227 | ||
Amortization of intangible assets (Note 11) | 554 | 503 | 485 | ||
Net decrease in deferred income tax asset | 483 | 832 | 156 | ||
Net increase (decrease) in deferred income tax liability | (15) | 2 | (12) | ||
Net (increase) derease in current income tax asset | 354 | (232) | (497) | ||
Net increase (decrease) in current income tax liability | 6 | (87) | 52 | ||
(Increase) in interest receivable | (299) | (366) | (130) | ||
Increase in interest payable | 313 | 337 | 15 | ||
Changes in other items and accruals, net | (1,255) | 2,078 | (3,405) | ||
Net increase in deposits | 48,009 | 34,138 | 15,409 | ||
Net (increase) in loans | (43,381) | (23,089) | (6,823) | ||
Net increase (decrease) in securities sold but not yet purchased | (2,524) | 2,004 | 336 | ||
Net increase in securities lent or sold under repurchase agreements | 20,358 | 452 | 16,535 | ||
Net (increase) in securities borrowed or purchased under resale agreements | (19,396) | (2,958) | (10,891) | ||
Net increase in securitization and structured entities' liabilities | 2,120 | 1,860 | 762 | ||
Net Cash Provided by (Used in) Operating Activities | 29,303 | 17,912 | 2,908 | ||
Cash Flows from Financing Activities | |||||
Net increase (decrease) in liabilities of subsidiaries | (1,227) | 2,203 | (87) | ||
Proceeds from issuance of covered bonds (Note 13) | 4,168 | 2,706 | 5,845 | ||
Redemption of covered bonds (Note 13) | (3,765) | (567) | (2,602) | ||
Proceeds from issuance of subordinated debt (Note 15) | 1,000 | 2,685 | 850 | ||
Repayment of subordinated debt (Note 15) | (1,000) | (900) | (100) | ||
Proceeds from issuance of preferred shares and other equity instruments (Note 16) | 1,008 | 400 | 900 | ||
Redemption of preferred shares (Note 16) | (300) | (500) | |||
Equity issue expense | (8) | (5) | (9) | ||
Proceeds from issuance of common shares (Note 16) | 54 | 88 | 149 | ||
Common shares repurchased for cancellation (Note 16) | (90) | (991) | (440) | ||
Cash dividends and distributions paid | (2,752) | (2,582) | (2,010) | ||
Net Cash Provided by (Used in) Financing Activities | (2,612) | 2,737 | 1,996 | ||
Cash Flows from Investing Activities | |||||
Net (increase) decrease in interest bearing deposits with banks | 329 | (1,648) | (2,245) | ||
Purchases of securities, other than trading | (63,496) | (46,749) | (30,424) | ||
Maturities of securities, other than trading | 13,154 | 14,754 | 5,930 | ||
Proceeds from sales of securities, other than trading | 31,561 | 23,561 | 24,400 | ||
Purchase of non-controlling interest | (25) | ||||
Premises and equipment - net (purchases) (Note 9) | (478) | (330) | (301) | ||
Purchased and developed software - net (purchases) (Note 11) | (650) | (556) | (490) | ||
Acquisitions (Note 10) | (365) | ||||
Net Cash (Used in) Investing Activities | (19,580) | (11,333) | (3,155) | ||
Effect of Exchange Rate Changes on Cash and Cash Equivalents | (450) | 227 | (803) | ||
Net increase in Cash and Cash Equivalents | 6,661 | 9,543 | 946 | ||
Cash and Cash Equivalents at Beginning of Year | 42,142 | 32,599 | 31,653 | ||
Cash and Cash Equivalents at End of Year (Note 2) | 48,803 | 42,142 | [1] | 32,599 | |
Net cash provided by operating activities includes: | |||||
Interest paid in the year | 12,956 | 8,790 | 5,826 | ||
Income taxes paid in the year | 1,209 | 1,261 | 1,338 | ||
Interest received in the year | 23,966 | 18,867 | 15,553 | ||
Dividends received in the year | $ 1,740 | $ 1,736 | $ 2,063 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
IFRS 7 Disclosure
IFRS 7 Disclosure | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
IFRS 7 Disclosure | Text and tables presented in a blue-tinted font in the Enterprise-Wide Risk Management section of the MD&A form an integral part of the 2019 audited annual consolidated financial statements. They present required disclosures as set out by the International Accounting Standards Board in IFRS 7, Financial Instruments – Disclosures 14 2 58 The transition from IBORs to alternative rates could result in increased volatility, pricing changes and/or illiquidity in markets for instruments that currently rely on IBORs. The transition could have adverse consequences for all market participants, including BMO as both holder and issuer of IBOR-based instruments, such as the potential for increased financial, operational, legal, reputational and/or compliance risks. We have established an enterprise-wide IBOR Transition Office to oversee our transition from IBORs to alternative rates. The Transition Office, which includes sponsorship and involvement from BMO’s senior leadership, has a global mandate spanning all of BMO’s lines of business, and oversees multiple different work streams, including all of our corporate function areas. We are evaluating potential changes to market infrastructures on our risk framework, models, systems and processes, as well as reviewing legal documents and establishing a risk framework, to ensure that BMO, as well as our clients, are prepared through education and outreach prior to the cessation of LIBOR and/or other IBORs. Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). Credit and Counterparty Risk Governance The objective of our credit risk management framework is to ensure that all material credit risks to which the enterprise is exposed are identified, measured, managed, monitored and reported. The RRC has oversight of the management of all material risks that we face, including the credit risk management framework. BMO’s credit risk management framework incorporates governing principles that are defined in a series of corporate policies and standards and are applied to specific operating procedures. These policies and standards are reviewed on a regular basis and modified when necessary to keep them current and consistent with BMO’s risk appetite. The structure, limits (both notional and capital-based), collateral requirements, monitoring, reporting and ongoing management of our credit exposures are all governed by these credit risk management principles. Lending officers in the operating groups are responsible for recommending credit decisions based on the completion of appropriate due diligence, and they assume accountability for the related risks. With limited exceptions, credit officers in ERPM approve all credit transactions and are accountable for providing an objective independent assessment of the lending recommendations and risks assumed by the lending officers. All of these skilled and experienced individuals in the first and second lines of defence are subject to a rigorous lending qualification process and operate in a disciplined environment with clear delegation of decision-making authority, including individually delegated lending limits, which are reviewed annually. The Board annually reviews our Credit Risk Management Policy and delegates to the CEO discretionary lending limits for further specific delegation to senior officers. Credit decision-making is conducted at the management level appropriate to the size and risk of each transaction, in accordance with comprehensive corporate policies, standards and procedures governing the conduct of activities in which credit risk arises. Corporate Audit Division reviews and tests management processes and controls and samples credit transactions in order to assess adherence to acceptable lending standards as set out in the enterprise risk appetite, as well as compliance with all applicable governing policies, standards and procedures. For corporate and commercial obligors presenting a higher than normal risk of default, we have in place formal policies that outline the framework for managing such accounts and specialized groups that manage them. We strive to identify borrowers in financial difficulty early, and every effort is made to bring such accounts back to an acceptable level of risk through the exercise of good business judgment and the implementation of sound and constructive workout solutions. Obligors are managed on a case-by-case basis, which involves the use of judgment by our specialized groups. All credit risk exposures are subject to regular monitoring. Performing corporate and commercial accounts are reviewed on a regular basis, no less frequently than annually, with most subject to a set of internal monitoring triggers that, if breached, results in an interim review. The frequency of review increases in accordance with the likelihood and size of potential credit losses and deteriorating higher-risk situations are referred to specialized account management groups for closer attention, when appropriate. In addition, regular portfolio and sector reviews are carried out, including stress testing and scenario analysis based on current, emerging or prospective risks. Reporting is provided at least quarterly, and more frequently where appropriate, to RRC and senior management committees in order to keep them informed of credit risk developments in our portfolios, including changes in credit risk concentrations, watchlist accounts, impaired loans, provisions for credit losses, negative credit migration and significant emerging credit risk issues. This supports RRC and senior management committees in giving effect to any measures they may decide to take. Counterparty credit risk (CCR) creates a bilateral risk of loss because the market value of a transaction can be positive or negative for either counterparty. CCR exposures are also subject to the credit oversight, limit framework and approval process outlined above. However, given the nature of the risk, CCR exposures are collateralized and monitored under the market risk framework. In order to reduce our exposure to CCR, we may clear trades through a regulated central counterparty (CCP), which reduces overall systemic risk by standing between counterparties, maximizing netting across trades and insulating counterparties from each other’s defaults. CCPs mitigate default risk of any member through the use of margin requirements (both initial and variation) and a default management process, including a default fund and other resources. Our exposures to CCPs are subject to the same credit risk governance, monitoring and rating framework we apply to all other corporate accounts. Credit and Counterparty Risk Management Collateral Management Collateral is used for credit risk mitigation purposes to minimize losses that would otherwise be incurred in the event of a default. Depending on the type of borrower or counterparty, the assets available and the structure and term of the credit obligations, collateral can take various forms. For corporate and commercial borrowers, collateral can take the form of pledges of the assets of a business, such as accounts receivable, inventory, machinery or real estate, or personal assets pledged in support of guarantees. For trading counterparties, we may enter into legally enforceable netting agreements for on-balance sheet credit exposures, when possible. In our securities financing transaction business (including repurchase agreements and securities lending), we take eligible financial collateral that we control and can readily liquidate. Collateral for our derivatives trading counterparty exposures is primarily comprised of cash and eligible liquid securities that are monitored and revalued on a daily basis. Collateral is obtained under the contractual terms of standardized industry documentation. With limited exceptions, we utilize the International Swaps and Derivatives Association Inc. Master Agreement, frequently with a Credit Support Annex, to document our collateralized trading relationships with our counterparties for over-the-counter (OTC) derivatives that are not centrally cleared. Credit Support Annexes entitle a party to demand a transfer of collateral (or other credit support) when its OTC derivatives exposure to the other party exceeds an agreed threshold. Collateral transferred can include an independent initial margin and/or variation margin. Credit Support Annexes contain, among Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). other measures, provisions setting out acceptable types of collateral and a method for their valuation (discounts are often applied to the market values), as well as thresholds, whether or not the collateral can be re-pledged by the recipient and how interest is to be calculated. To document our contractual securities financing relationships with our counterparties, we utilize master repurchase agreements for repurchase transactions, and master securities lending agreements for securities lending transactions. On a periodic basis, collateral is subject to revaluation specific to asset type. For loans, the value of collateral is initially established at the time of origination, and the frequency of revaluation is dependent on the type of collateral. For commercial real estate collateral, a full external appraisal of the property is typically obtained at the time of loan origination, unless the exposure is below a specified threshold amount, in which case an internal evaluation and a site inspection are conducted. Internal evaluations may consider property tax assessments, purchase prices, real estate listings or realtor opinions. The case for an updated appraisal is reviewed annually, with consideration given to the borrower risk rating, existing tenants and lease contracts, as well as current market conditions. In the event a loan is classified as impaired, and depending on its size, a current external appraisal, evaluation or restricted use appraisal is obtained and updated every twelve months while the loan is classified as impaired. In Canada, for residential real estate that has a loan-to-value (LTV) ratio of less than 80%, an external property appraisal is routinely obtained at the time of loan origination. We may use an external service provided by Canada Mortgage and Housing Corporation or an automated valuation model provided by a third-party appraisal management company to assist with determining either the current value of a property or the need for a full property appraisal. For insured mortgages in Canada with a high LTV ratio (greater than 80%), the default insurer is responsible for confirming the lending value. Portfolio Management and Concentrations of Credit and Counterparty Risk BMO’s credit risk governance policies require an acceptable level of diversification to help ensure we avoid undue concentrations of credit risk. Concentrations of credit risk may exist if a number of clients are engaged in similar activities, are located in the same geographic region or have similar economic characteristics such that their ability to meet contractual obligations could be similarly affected by changes in economic, political or other conditions. Limits may be specified for several portfolio dimensions, including industry, specialty segment (e.g., hedge funds and leveraged lending), country, product and single-name concentrations. The diversification of our credit exposure may be supplemented by the purchase or sale of credit protection through guarantees, insurance or credit default swaps. Our credit assets consist of a well-diversified portfolio representing millions of clients, the majority of them individual consumers and small to medium-sized businesses. From an industry viewpoint, on a drawn loans and commitment s Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). Total non-trading exposures at default by industry sector, excluding the impact of collateral, as at October 31, 2019 and 2018, based on the Basel III classifications, are as follows: (Canadian $ in millions) Drawn Commitments (undrawn) OTC derivatives Other off-balance sheet items Repo-style transactions Total (1) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Financial institutions 117,959 102,552 24,010 21,741 974 1,649 6,402 5,016 203,084 177,094 352,429 308,052 Governments 58,051 44,552 1,665 2,118 9 1 894 667 8,452 8,401 69,071 55,739 Manufacturing 26,266 22,580 16,581 13,490 12 10 1,494 1,396 – – 44,353 37,476 Real estate 37,146 31,534 8,948 8,170 1 1 861 820 – – 46,956 40,525 Retail trade 22,529 19,961 3,974 3,617 – – 601 559 – – 27,104 24,137 Service industries 46,612 39,067 13,304 12,666 12 1 2,996 2,389 – – 62,924 54,123 Wholesale trade 16,843 14,659 5,273 4,531 1 2 564 436 – – 22,681 19,628 Oil and gas 13,406 9,131 11,302 10,410 – – 1,802 1,804 – – 26,510 21,345 Individual 198,214 190,688 51,433 47,586 – – 115 126 – – 249,762 238,400 Others (2) 40,573 35,617 19,814 18,197 68 88 6,866 6,474 – – 67,321 60,376 Total exposure at default 577,599 510,341 156,304 142,526 1,077 1,752 22,595 19,687 211,536 185,495 969,111 859,801 (1) Credit exposure excluding equity, securitization, trading book and other assets such as non-significant investments, goodwill, deferred tax asset and intangibles. (2) Includes industries having a total exposure of less than 2%. Risk Rating Systems BMO’s risk rating systems are designed to assess and measure the risk of any exposure. Credit risk-based parameters are reviewed, validated and monitored regularly. The monitoring is on a quarterly basis for both the wholesale and retail models. Retail (Consumer and Small Business) The retail portfolios are comprised of a diversified group of individual customer accounts and include residential mortgages, personal loans, credit cards, auto loans and small business loans. These loans are managed in pools of homogeneous risk exposures for risk rating purposes. Decision support systems are developed using established statistical techniques and expert systems for underwriting and monitoring purposes. Adjudication models, behavioural scorecards, decision trees and expert knowledge are combined to generate optimal credit decisions in a centralized and automated environment. The retail risk rating system assesses risk based on individual loan characteristics. BMO has a range of internally developed PD, LGD and EAD models for each of the major retail portfolios. The major product lines within each of the retail risk areas are modelled separately, so that the risk-based parameters capture the distinct nature of each product. The models, in general, are designed based on internal data recorded over a period of more than seven years, and adjustments are made at the parameter level to account for any uncertainty. The retail parameters are tested and calibrated on an annual basis, if required, to incorporate additional data points in the parameter estimation process, ensuring that the most recent experience is incorporated. Our largest retail portfolios are the Canadian mortgage, Canadian home equity line of credit and Canadian retail credit card portfolios. Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). Wholesale (Corporate, Commercial, Bank and Sovereign) Within our wholesale portfolios, we utilize an enterprise-wide risk rating framework that is applied to all our sovereign, bank, corporate and commercial counterparties. One key element of this framework is the assignment of appropriate borrower or counterparty risk ratings (BRRs). BMO has a range of internally designed general and sector-specific BRR models, as well as portfolio-level LGD and EAD models for each of the corporate, commercial, bank and sovereign portfolios. The BRR models capture the key financial and non-financial characteristics of the borrowers and generate a borrower-level rating that reflects the rank ordering of the default risk. The models are primarily designed by using internal data, supplemented with judgment as necessary, for low default portfolios. BRRs are assessed and assigned at the time of loan origination, and reassessed when borrowers request changes to credit facilities or when events trigger a review, such as an external rating change or covenant breach. BRRs are reviewed no less frequently than annually, and more frequent reviews are conducted for borrowers with less acceptable risk ratings. Credit Quality Information Portfolio Review Total enterprise-wide outstanding credit risk exposures were $969.1 billion as at October 31, 2019, comprised of $467.9 billion in Canada, $415.8 billion in the United States and $85.4 billion in other jurisdictions. Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). Loan Maturities and Interest Rate Sensitivity The following table presents gross loans and acceptances by contractual maturity and by country of ultimate risk: (Canadian $ in millions) 1 year or less Over 1 year to 5 years Over 5 years Total 2019 2018 2019 2018 2019 2018 2019 2018 Canada Consumer 58,580 54,375 113,162 109,991 4,432 4,199 176,174 168,565 Commercial and corporate 65,534 57,530 16,591 14,862 1,973 1,750 84,098 74,142 Commercial real estate 7,928 7,397 11,647 10,143 2,298 1,275 21,873 18,815 United States 37,867 33,688 87,443 73,470 33,423 25,955 158,733 133,113 Other countries 9,214 8,628 996 658 449 294 10,659 9,580 Total 179,123 161,618 229,839 209,124 42,575 33,473 451,537 404,215 The following table presents net loans and acceptances by interest rate sensitivity: (Canadian $ in millions) 2019 2018 Fixed rate 217,002 193,661 Floating rate 209,092 190,330 Non-interest sensitive (1) 23,593 18,585 Total 449,687 402,576 (1) Non-interest sensitive is comprised of customers’ liability under acceptances. Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). Market Risk Market risk arises from BMO’s trading and underwriting activities, as well as its structural banking activities. The magnitude and importance of these activities to the enterprise, along with the potential volatility of market variables, call for diligent governance and a robust market risk management framework that ensures effective identification, measurement, reporting and control of market risk exposures. Trading and Underwriting Market Risk Governance BMO’s market risk-taking activities are subject to a comprehensive governance framework. The RRC provides oversight of the management of market risk on behalf of the Board of Directors and approves limits governing market risk exposures that are consistent with our risk appetite. The RMC regularly reviews and discusses significant market risk exposures and positions, and provides ongoing senior management oversight of BMO’s risk-taking activities. Both of these committees are kept apprised of specific market risk exposures and other factors that could expose BMO to unusual, unexpected or unquantified risks associated with market exposures, as well as other current and emerging market risks. In addition, all businesses and individuals authorized to conduct trading and underwriting activities on behalf of BMO are required to work within BMO’s risk governance framework and, as part of their first-line-of-defence responsibilities, they must adhere to all relevant corporate policies, standards and procedures and maintain and manage market risk exposures within specified limits and risk tolerances. In support of BMO’s risk governance framework, our market risk management framework is comprised of the processes, infrastructure and supporting documentation which, together, ensure that the bank’s market risk exposures are appropriately identified, accurately measured, and independently monitored and controlled on an ongoing basis. Trading and Underwriting Market Risk Our trading and underwriting businesses give rise to market risk associated with buying and selling financial products in the course of meeting customer requirements, including market making and related financing activities, and assisting clients to raise funds by way of securities issuance. Identification and Measurement of Trading and Underwriting Market Risk As the first step in the management of market risk, thorough assessment processes are in place to identify market risk exposures associated with both new products and the evolving risk profile of existing products, including on- and off-balance sheet positions, trading and non-trading positions and market risk exposures arising from the domestic and foreign operations of our operating groups. Reflecting the multi-dimensional nature of market risk, various metrics and techniques are then employed to measure identified market risk exposures. These metrics primarily include Value at Risk, Stressed Value at Risk, and regulatory and economic capital attribution, as well as stress testing. Other techniques include the analysis of the sensitivity of our trading and underwriting portfolios to various market risk factors and the review of position concentrations, notional values and trading losses. A consistent set of VaR and SVaR models is used for both management and regulatory purposes across all BMO Financial Group legal entities in which trading and/or underwriting activities are conducted. We use a variety of methods to verify the integrity of our risk models, including the application of back-testing against hypothetical losses and approval by an independent model validation team. This testing is aligned with defined regulatory expectations, and its results confirm the reliability of our models. The volatility data and correlations that underpin our models are updated frequently, so that risk metrics reflect current conditions. Probabilistic stress testing and scenario analysis are used daily to determine the potential impact of plausible but severe market changes on our portfolios. In addition, historical event stresses are tested on a weekly basis, including tests of scenarios such as the stock market crash of 1987 and the collapse of Lehman Brothers in 2008. Targeted analyses of risks and portfolios, along with other ad hoc analyses, are also conducted to determine our sensitivity to hypothetical, low-frequency, high-severity scenarios. Scenarios are amended, added or removed to better reflect changes in underlying market conditions and the results are reported to the lines of business, the RMC and the RRC on a regular basis. VaR, SVaR, IRC and stress testing should not be viewed as definitive predictors of the maximum amount of losses that could occur in any one day, as their results are based on models and estimates and are subject to confidence levels, and the estimates could be exceeded under unforeseen market conditions. Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). Back-testing assumes there are no changes in the previous day’s closing positions and then isolates the effects of each day’s price movements against those closing positions. The bank’s VaR model is back-tested daily, and the one-day 99% confidence level VaR at the local and consolidated BMO levels is compared with the estimated daily profit and loss (P&L) that would be recorded if the portfolio composition remained unchanged. If this P&L result is negative and its absolute value is greater than the previous day’s VaR, a back-testing exception occurs. Each exception is investigated, explained and documented, and the back-testing results are reviewed by senior management and reported to our regulators. Although it is a valuable indicator of risk, as with any model-driven metric, VaR has limitations. Among these limitations is the assumption that all positions can be liquidated within the assumed one-day holding period, which may not be the case under illiquid market conditions. Generally, market liquidity horizons are reviewed for suitability and updated where appropriate for relevant risk metrics. Further limitations of the VaR metric include the assumption that historical data can be used as a proxy to forecast future market events, and the fact that VaR calculations are based upon portfolio positions at the close of business and do not reflect the impact of intra-day trading activity. Monitoring and Control of Trading and Underwriting Market Risk A comprehensive set of limits is applied to these metrics, and these limits are subject to regular monitoring and reporting, with any breach of the limits escalated to the appropriate level of management. Risk profiles of our trading and underwriting activities are maintained within our risk appetite and supporting limits, and are monitored and reported to traders, management, senior executives and Board committees. Other significant controls include the independent valuation of financial assets and liabilities, as well as compliance with our Model Risk Management Framework to mitigate model risk. Total Trading Value at Risk (VaR) Summary (1) (2) As at or for the year ended October 31 (pre-tax Canadian $ equivalent in millions) 2019 2018 Year-end Average High Low Year-end Average High Low Commodity VaR 1.0 1.4 4.9 0.6 0.7 0.9 13.6 0.3 Equity VaR 3.0 4.6 12.6 2.5 4.4 4.4 7.8 2.9 Foreign exchange VaR 0.5 0.5 1.4 0.2 0.5 0.6 2.2 0.1 Interest rate VaR 9.9 6.5 10.6 4.3 6.1 5.9 8.7 3.6 Credit VaR 5.1 5.8 9.2 4.0 7.4 2.6 7.4 1.5 Diversification (10.9 ) (9.8 ) nm nm (8.3 ) (6.8 ) nm nm Total Trading VaR 8.6 9.0 17.2 5.8 10.8 7.6 17.5 4.7 Total Trading SVaR 19.2 31.7 69.6 16.5 56.3 26.8 56.3 16.6 (1) One-day measure using a 99% confidence interval. Gains are presented in brackets and losses are presented as positive numbers. (2) Stressed VaR is produced weekly. nm – not meaningful Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). Structural (Non-Trading) Market Risk Structural market risk is comprised of interest rate risk arising from our banking activities (loans and deposits) and foreign exchange risk arising from our foreign currency operations and exposures. Structural Market Risk Governance BMO’s Corporate Treasury group is responsible for the ongoing management of structural market risk across the enterprise, with independent oversight provided by the Market Risk group. In addition to Board-approved limits on earnings at risk and economic value sensitivities to changes in interest rates, more granular management limits are in place to guide the daily management of this risk. The RRC has oversight of the management of structural market risk, annually approves the structural market risk plan and limits, and regularly reviews structural market risk positions. The RMC and Balance Sheet and Capital Management Committee regularly review structural market risk positions and provide senior management oversight. Structural Market Risk Measurement Interest Rate Risk Structural interest rate risk arises when changes in interest rates affect the market value, cash flows and earnings of assets and liabilities related to our banking activities. The objective of structural interest rate risk management is to maintain high-quality earnings and maximize sustainable product spreads, while managing the risk to the economic value of our assets arising from changes in interest rates. Structural interest rate risk is primarily comprised of interest rate mismatch risk and product embedded option risk. Interest rate mismatch risk arises when there are differences in the scheduled maturities, repricing dates or reference rates of assets, liabilities and derivatives. The net interest rate mismatch, representing residual assets funded by common shareholders’ equity, is managed to a target profile through interest rate swaps and securities. Product embedded option risk arises when product features allow customers to alter cash flows, such as scheduled maturity or repricing dates, usually in response to changes in market conditions. Product embedded options include loan prepayments, deposit redemption privileges and committed rates on unadvanced mortgages. Product embedded options and associated customer behaviours are captured in risk modelling, and hedging programs may be used to manage this risk to low levels. Structural interest rate risk is measured using simulations, earnings sensitivity and economic value sensitivity analysis, stress testing and gap analysis, in addition to other treasury risk metrics. The models used to measure structural interest rate risk use projected changes in interest rates and predict how customers would likely react to these changes. For customer loans and deposits with scheduled maturity and repricing dates (such as mortgages and term deposits), our models measure the extent to which customers are likely to use embedded options to alter those scheduled terms. For customer loans and deposits without scheduled maturity and repricing dates (such as credit card loans and chequing accounts), we measure our exposure using models that adjust for elasticity in product pricing and reflect historical and forecasted trends in balances. The results of these structural market risk models, by their nature, have inherent uncertainty, as they reflect potential anticipated pricing and customer behaviours, which may differ from actual experience. These models have been developed using statistical analysis and are independently validated and periodically updated through regular model performance assessment, back-testing processes and ongoing dialogue with the lines of business. Models developed to predict customer behaviour are also used to support product pricing. Structural interest rate earnings and economic value sensitivity to an immediate parallel increase or decrease of 100 basis points in the yield curve is disclosed in the table below. There were no significant changes in our structural market risk management framework during the year. Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). Structural Interest Rate Sensitivity (1) As at October 31, 2019 As at October 31, 2018 (Pre-tax Canadian $ equivalent in millions) Economic value Earnings sensitivity Economic value Earnings sensitivity 100 basis point increase (883.4 ) 46.6 (1,079.2 ) 136.5 100 basis point decrease 215.6 (80.3 ) 626.5 (304.1 ) (1) Losses are presented in brackets and gains are presented as positive numbers. Insurance Market Risk Insurance market risk includes interest rate and equity market risk arising from BMO’s insurance business activities. A 100 basis point increase in interest rates as at October 31, 2019 would result in an increase in earnings before tax of $27 million ($37 million as at October 31, 2018). A 100 basis point decrease in interest rates as at October 31, 2019 would result in a decrease in earnings before tax of $25 million ($37 million as at October 31, 2018). On an unhedged basis, a 10% decrease in equity market values as at October 31, 2019 would result in a decrease in earnings before tax of $57 million ($44 million as at October 31, 2018). A 10% increase in equity market values as at October 31, 2019 would result in an increase in earnings before tax of $54 million ($42 million as at October 31, 2018). BMO may enter into hedging arrangements to offset the impact of changes in equity market values on its earnings, and did so during the 2019 fiscal year. The impact of insurance market risk on earnings is reflected in insurance claims, commissions and changes in policy benefit liabilities on the Consolidated Statement of Income, and the corresponding change in the fair value of our policy benefit liabilities is reflected in other liabilities on the Consolidated Balance Sheet. The impact of insurance market risk is not reflected in the table above. Foreign Exchange Risk Structural foreign exchange risk arises primarily from translation risk related to the net investment in our U.S. operations and from transaction risk associated with our U.S.-dollar-denominated net income. Translation risk represents the impact that changes in foreign exchange rates could have on BMO’s reported shareholders’ equ |
Basis of Presentation
Basis of Presentation | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Basis of Presentation | Note 1: Basis of Presentation Bank of Montreal (“the bank”) is a chartered bank under the Bank Act (Canada) We have prepared these consolidated financial statements in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). We also comply with interpretations of IFRS by our regulator, the Office of the Superintendent of Financial Institutions Canada (“OSFI”). Our consolidated financial statements have been prepared on a historic cost basis, except for the revaluation of the following items: assets and liabilities held for trading; financial assets and liabilities measured or designated at fair value through profit or loss (“FVTPL”); financial assets measured or designated at fair value through other comprehensive income (“FVOCI”); financial assets and financial liabilities designated as hedged items in qualifying fair value hedge relationships; cash-settled share-based payment liabilities; defined benefit pension and other employee future benefit liabilities; and insurance-related liabilities. These consolidated financial statements were authorized for issue by the Board of Directors on December 3, 2019. Basis of Consolidation These consolidated financial statements are inclusive of the financial statements of our subsidiaries as at October 31, 2019. We conduct business through a variety of corporate structures, including subsidiaries, structured entities (“SEs”), associates and joint ventures. Subsidiaries are those entities where we exercise control through our ownership of the majority of the voting shares. We also hold interests in SEs, which we consolidate when we control the SEs. These are more fully described in Note 7. All of the assets, liabilities, revenues and expenses of our subsidiaries and consolidated SEs are included in our consolidated financial statements. All intercompany transactions and balances are eliminated on consolidation. We hold investments in associates, where we exert significant influence over operating and financing decisions (generally companies in which we own between 20% and 50% of the voting shares). These are accounted for using the equity method. The equity method is also applied to our investments in joint ventures, which are entities where we exercise joint control through an agreement with other shareholders. Under the equity method of accounting, investments are initially recorded at cost, and the carrying amount is increased or decreased to recognize our share of investee net income or loss, including other comprehensive income or loss. Our equity accounted investments are recorded as other securities and our share of the net income or loss is recorded in investments in associates and joint ventures, in our Consolidated Statement of Income. Any other comprehensive income amounts are reflected in the relevant section of our Consolidated Statement of Comprehensive Income. Additional information regarding accounting for other securities is included in Note 3. Specific Accounting Policies To facilitate a better understanding of our consolidated financial statements, we have disclosed our significant accounting policies throughout the following notes with the related financial disclosures by major caption: Note Topic Page 1 Basis of Presentation 142 2 Cash and Interest Bearing Deposits with Banks 147 3 Securities 147 4 Loans and Allowance for Credit Losses 151 5 Risk Management 158 6 Transfer of Assets 159 7 Structured Entities 160 8 Derivative Instruments 162 9 Premises and Equipment 171 10 Acquisitions 172 11 Goodwill and Intangible Assets 172 12 Other Assets 173 13 Deposits 174 14 Other Liabilities 175 15 Subordinated Debt 176 16 Equity 177 Note Topic Page 17 Fair Value of Financial Instruments and Trading-Related Revenue 179 18 Offsetting of Financial Assets and Financial Liabilities 187 19 Capital Management 187 20 Employee Compensation – Share-Based Compensation 188 21 Employee Compensation – Pension and Other Employee Future Benefits 190 22 Income Taxes 194 23 Earnings Per Share 197 24 Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities 197 25 Operating and Geographic Segmentation 199 26 Significant Subsidiaries 203 27 Related Party Transactions 204 28 Transition to IFRS 9 205 Translation of Foreign Currencies We conduct business in a variety of foreign currencies and present our consolidated financial statements in Canadian dollars, which is our functional currency. Monetary assets and liabilities, as well as non-monetary Non-monetary Unrealized gains and losses arising from translating our net investment in foreign operations into Canadian dollars, net of related hedging activities and applicable income taxes, are included in our Consolidated Statement of Comprehensive Income within net gains (losses) on translation of net foreign operations. When we dispose of a foreign operation such that control, significant influence or joint control is lost, the cumulative amount of the translation gain (loss) and any applicable hedging activities and related income taxes is reclassified to our Consolidated Statement of Income as part of the gain or loss on disposition. Foreign currency translation gains and losses on equity securities measured at FVOCI that are denominated in foreign currencies are included in accumulated other comprehensive income on FVOCI equity securities, net of taxes, in our Consolidated Statement of Changes in Equity. All other foreign currency translation gains and losses are included in foreign exchange gains, other than trading, in our Consolidated Statement of Income as they arise. From time to time, we enter into foreign exchange hedge contracts to reduce our exposure to changes in the value of foreign currencies. Realized and unrealized gains and losses that arise on the mark-to-market non-interest Revenue Dividend Income Dividend income is recognized when the right to receive payment is established. This is the ex-dividend Fee Income Securities commissions and fees Deposit and payment service charges Card fees Investment management and custodial fees Mutual fund revenues Underwriting and advisory fees merger-and-acquisition Leases We are lessors in both financing leases and operating leases. Leases are classified as financing leases if they transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. Otherwise they are classified as operating leases, as we retain substantially all the risks and rewards of asset ownership. As lessor in a financing lease, a loan is recognized equal to the investment in the lease, which is calculated as the present value of the minimum payments to be received from the lessee, discounted at the interest rate implicit in the lease, plus any unguaranteed residual value we expect to recover at the end of the lease. Finance lease income is recognized in interest, dividend and fee income, loans, in our Consolidated Statement of Income. Assets under operating leases are recorded in other assets in our Consolidated Balance Sheet. Rental income is recognized on a straight-line basis over the term of the lease in non-interest non-interest Assets Held-for-Sale Non-current non-financial held-for-sale non-current non-interest Changes in Accounting Policies Revenue Effective November 1, 2018, we adopted IFRS 15 Revenue from Contracts with Customers non-interest non-interest out-of-pocket non-interest The following table summarizes the impacts of applying IFRS 15 on our prior period Consolidated Statement of Income: (Canadian $ in millions) 2018 2017 Increase (decrease) in Non-Interest Securities commissions and fees (4 ) (5 ) Deposit and payment service charges (10 ) (14 ) Card fees (136 ) (150 ) Investment management and custodial fees 7 5 Underwriting and advisory fees 7 8 Other 4 3 (132 ) (153 ) Non-Interest Employee compensation 2 1 Travel and business development (154 ) (153 ) Professional fees 8 6 Other 8 8 (136 ) (138 ) Provision for income taxes 1 (4 ) Net Income 3 (11 ) Share-based Payment Effective November 1, 2018, we adopted amendments to IFRS 2 Share-based Payment Financial Instruments Effective November 1, 2017 , Financial Instruments Financial Instruments: Recognition and Measurement (“IAS 39”). Use of Estimates and Judgments The preparation of the consolidated financial statements requires management to use estimates and assumptions that affect the carrying amounts of certain assets and liabilities, certain amounts reported in net income and other related disclosures. The most significant assets and liabilities for which we must make estimates include allowance for credit losses; financial instruments measured at fair value; pension and other employee future benefits; impairment of securities; income taxes and deferred tax assets; goodwill and intangible assets; insurance-related liabilities; and provisions. We make judgments in assessing the business model for financial assets as well as whether substantially all risks and rewards have been transferred in respect of transfers of financial assets and whether we control SEs, as discussed in Notes 6 and 7, respectively. If actual results were to differ from the estimates, the impact would be recorded in future periods. We have established detailed policies and control procedures that are intended to ensure these judgments are well controlled, independently reviewed and consistently applied from period to period. We believe that our estimates of the value of our assets and liabilities are appropriate. Allowance for Credit Losses The expected credit loss (“ECL”) model requires the recognition of credit losses generally based on 12 months of expected losses for performing loans and the recognition of lifetime losses on performing loans that have experienced a significant increase in credit risk since origination. The determination of a significant increase in credit risk takes into account many different factors and varies by product and risk segment. The main factors considered in making this determination are relative changes in probability of default since origination, and certain other criteria, such as 30-day In determining whether there has been a significant increase in credit risk and in calculating the amount of expected credit losses, we must rely on estimates and exercise judgment regarding matters for which the ultimate outcome is unknown. These judgments include changes in circumstances that may cause future assessments of credit risk to be materially different from current assessments, which could require an increase or decrease in the allowance for credit losses. The calculation of expected credit losses includes the explicit incorporation of forecasts of future economic conditions. We have developed models incorporating specific macroeconomic variables that are relevant to each portfolio. Key economic variables for our retail portfolios include primary operating markets of Canada, the United States ( U . S. Additional information regarding the allowance for credit losses is included in Note 4. Financial Instruments Measured at Fair Value Fair value measurement techniques are used to value various financial assets and financial liabilities, and are also used in performing impairment testing on certain non-financial Additional information regarding our fair value measurement techniques is included in Note 17. Pension and Other Employee Future Benefits Our pension and other employee future benefits expense is calculated by our independent actuaries using assumptions determined by management. If actual experience were to differ from the assumptions used, we would recognize this difference in other comprehensive income. Pension and other employee future benefits expense, plan assets and defined benefit obligations are also sensitive to changes in discount rates. We determine discount rates for all of our plans using high-quality AA rated corporate bond yields with terms matching the plans’ specific cash flows. Additional information regarding our accounting for pension and other employee future benefits is included in Note 21. Impairment of Securities We review other securities at each quarter-end Debt securities measured at amortized cost or FVOCI are assessed for impairment using the expected credit loss model. For securities determined to have low credit risk, the allowance for credit losses is measured at a 12-month expected credit loss. Additional information regarding our accounting for debt securities measured at amortized cost or FVOCI and other securities, allowance for credit losses and the determination of fair value is included in Notes 3 and 17. Income Taxes and Deferred Tax Assets The provision for income taxes is calculated based on the expected tax treatment of transactions recorded in either our Consolidated Statement of Income or Consolidated Statement of Changes in Equity. In determining the provision for income taxes, we interpret tax legislation, case law and administrative positions in numerous jurisdictions and, based on our judgment, record our estimate of the amount required to settle tax obligations. We also make assumptions about the expected timing of the reversal of deferred tax assets and liabilities. If our interpretations and assumptions differ from those of tax authorities or if the timing of reversals is not as expected, our provision for income taxes could increase or decrease in future periods. The amount of any such increase or decrease cannot be reasonably estimated. Deferred tax assets are recognized only when it is probable that sufficient taxable profit will be available in future periods against which deductible temporary differences or unused tax losses and tax credits may be utilized. We are required to assess whether it is probable that our deferred income tax assets will be realized. The factors used to assess the probability of realization are our past experience of income and capital gains, our forecast of future net income before taxes, and the remaining expiration period of tax loss carryforwards and tax credits. Changes in our assessment of these factors could increase or decrease our provision for income taxes in future periods. Additional information regarding our accounting for income taxes is included in Note 22. Goodwill and Intangible Assets For the purpose of impairment testing, goodwill is allocated to our groups of cash-generating units (“CGUs”), which represent the lowest level within the bank at which goodwill is monitored for internal management purposes. Impairment testing is performed at least annually, by comparing the carrying values and the recoverable amounts of the CGUs to which goodwill has been allocated to determine whether the recoverable amount of each group is greater than its carrying value. If the carrying value of the group were to exceed its recoverable amount, an impairment calculation would be performed. The recoverable amount of a CGU is the higher of its fair value less costs to sell and value in use. In determining fair value less costs to sell, we employ a discounted cash flow model consistent with those used when we acquire businesses. This model is dependent on assumptions related to revenue growth, discount rates, synergies achieved on acquisition and the availability of comparable acquisition data. Changes in any of these assumptions would affect the determination of fair value for each of the business units in a different manner. Management must exercise judgment and make assumptions in determining fair value less costs to sell, and differences in judgment and assumptions could affect the determination of fair value and any resulting impairment write-down. Intangible assets with a definite life are amortized to income on either a straight-line or an accelerated basis over a period not exceeding 15 years, depending on the nature of the asset. We test definite-life intangible assets for impairment when circumstances indicate the carrying value may not be recoverable. Indefinite-life intangible assets are tested annually for impairment. If any intangible assets are determined to be impaired, we write them down to their recoverable amount, the higher of value in use and fair value less costs to sell, when this is less than the carrying value. Additional information regarding goodwill and intangible assets is included in Note 11. Insurance-Related Liabilities Insurance claims and policy benefit liabilities represent current claims and estimates of future insurance policy benefit liabilities. Liabilities for life insurance contracts are determined using the Canadian Asset Liability Method, which incorporates best-estimate assumptions for mortality, morbidity, policy lapses, surrenders, future investment yields, policy dividends, administration costs and margins for adverse deviation. These assumptions are reviewed at least annually and updated to reflect actual experience and market conditions. The most significant impact on the valuation of a liability would result from a change in the assumption for future investment yields. Additional information regarding insurance-related liabilities is included in Note 14. Provisions A provision, including for restructuring, is recognized if, as a result of a past event, the bank has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recorded at the best estimate of the amounts required to settle the obligation as at the balance sheet date, taking into account the risks and uncertainties associated with the obligation. Management and external experts are i Additional information regarding provisions is included in Note 24. Transfer of Financial Assets and Consolidation of Structured Entities We enter into transactions in which we transfer assets, typically mortgage loans and credit card loans, to a structured entity or third party to obtain alternate sources of funding. We assess whether substantially all of the risks and rewards of or control over the loans have been transferred to determine if they qualify for derecognition. Since we continue to be exposed to substantially all of the repayment, interest rate and/or credit risk associated with the securitized loans, they do not qualify for derecognition. We continue to recognize the loans and the related cash proceeds as secured financings in our Consolidated Balance Sheet. For securitization vehicles sponsored by the bank, the vehicles typically have limited decision-making authority. The structure of these vehicles limits the activities they can undertake, the types of assets they can hold and how activities are funded. We control and consolidate these vehicles when we have the key decision-making powers necessary to obtain the majority of the benefits of their activities. For certain investments in limited partnerships, we exercise judgment in determining whether we control an entity. Based on an assessment of our interests and rights, we have determined that we do not control certain entities, even though we may have an ownership interest greater than 50%. This may be the case when we are not the general partner in an arrangement and the general partner’s rights most significantly affect the returns of the entity. Additionally, we have determined that we control certain entities despite having an ownership interest less than 50%. This may be the case when we are the general partner in an arrangement and the general partner’s rights most significantly affect the returns of the entity. Transferred assets are discussed in greater detail in Note 6 and structured entities are discussed in greater detail in Notes 7 and 20. Future Changes in IFRS Leases In January 2016, the IASB issued IFRS 16 Leases for most leases, lessees will recognize a liability for the present value of future lease payments and record a corresponding asset on the balance sheet. There are minimal changes to lessor accounting. IFRS 16 is effective for our fiscal year beginning November 1, 2019. The main impact for the bank will be recording real estate leases on the balance sheet. Currently, most of our real estate leases are classified as operating leases, whereby we record lease expense over the lease term with no asset or liability recorded on the balance sheet other than any related leasehold improvements. Under IFRS 16, we will recognize right-of-use On transition, we will recalculate the right-of-use asset as if we had always applied IFRS 16 for a selection of leases, and for the remaining leases, we will set the right-of-use asset equal to the lease liability. We will continue to account for low-dollar-value leases as executory contracts, with lease expense recorded over the lease term and no corresponding right-of-use asset or lease liability for certain types of leases. In addition, we have elected to exclude intangibles from the scope of lease accounting, and we will combine lease and non-lease components (for example, maintenance and utilities that have fixed payments) in the calculation of right-of-use assets and lease liabilities. When we adopt IFRS 16, we will recognize the cumulative effect of any changes in opening retained earnings with no changes to prior years. The impact will be an increase in assets of approximately $2.0 billion, an increase in liabilities of approximately $2.1 billion, a decrease in equity of approximately $100 million ($75 million after tax) and a decrease in our CET1 capital ratio by up to approximately 10 bps. Uncertainty Over Income Tax Treatments On June 7, 2017, the IASB issued IFRIC Interpretation 23 Uncertainty over Income Tax Treatments b Income Taxes Interbank Offered Rate (“IBOR”) Reform The IASB published Phase 1 of its amendments to IFRS 9 Financial Instruments Financial Instruments: Recognition and Measurement Financial Instruments: Disclosures b The Phase 1 amendments are effective for our fiscal year beginning November 1, 2020, with early adoption permitted. We are in the process of assessing our inventory of IBOR-based instruments and related hedge accounting relationships to evaluate the impact of these amendments on our financial results. We provide disclosure on our current hedging relationships in Note 8. Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts Insurance Contracts Conceptual Framework In March 2018, the IASB issued the revised Conceptual Framework (“Framework”), which sets out the fundamental concepts for financial reporting to ensure consistency in standard-setting decisions and that similar transactions are treated in a similar way, so as to provide useful information to users of financial statements. The revised Framework, which is effective for our fiscal year beginning November 1, 2020, will inform future standard-setting decisions but does not impact existing IFRS. We do not expect the Framework to have a significant impact on our accounting policies. |
Cash and Interest Bearing Depos
Cash and Interest Bearing Deposits with Banks | 12 Months Ended |
Oct. 31, 2019 | |
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Cash and Interest Bearing Deposits with Banks | Note 2: Cash and Interest Bearing Deposits with Banks (Canadian $ in millions) 2019 2018 Cash and deposits with banks (1) 47,598 40,738 Cheques and other items in transit, net 1,205 1,404 Total cash and cash equivalents 48,803 42,142 (1) Includes deposits with the Bank of Canada, the U.S. Federal Reserve and other central banks. Cheques and Other Items in Transit, Net Cheques and other items in transit are recorded at cost and represent the net position of the uncleared cheques and other items in transit between us and other banks. Cash Restrictions Certain of our foreign operations are required to maintain reserves or minimum balances with central banks in their respective countries of operation, totalling $1,896 million as at October 31, 2019 ($1,655 million in 2018). Interest Bearing Deposits with Banks Deposits with banks are recorded at amortized cost and include acceptances we have purchased that were issued by other banks. Interest income earned on these deposits is recorded on an accrual basis. |
Securities
Securities | 12 Months Ended |
Oct. 31, 2019 | |
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Securities | Note 3: Securities Securities are divided into six types, each with a different purpose and accounting treatment. The types of securities we hold are as follows: Trading securities Fair value through profit or loss securities Securities Designated at FVTPL In order to qualify for this designation, the security must have reliably measurable fair values, and the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the gains and losses on a different basis. Securities must be designated on initial recognition, and the designation is irrevocable. If these securities were not designated at FVTPL, they would be accounted for at either FVOCI or amortized cost. We designate certain securities held by our insurance subsidiaries that support our insurance liabilities at fair value through profit or loss, since the actuarial calculation of insurance liabilities is based on the fair value of the investments supporting them. This designation aligns the accounting result with the way the portfolio is managed on a fair value basis. The change in fair value of the securities is recorded in non-interest non-interest Securities Mandatorily Measured at FVTPL Securities managed on a fair value basis, but not held for trading, or debt securities with cash flows that do not represent solely payments of principal and interest and equity securities not held for trading or designated at FVOCI are classified as FVTPL. The bank’s FVTPL securities of $13,704 million as at October 31, 2019 ($11,611 million as at October 31, 2018) include $2,899 million of securities mandatorily measured at fair value as at October 31, 2019 ($2,828 million as at October 31, 2018). Debt securities at amortized cost Debt securities at FVOCI Debt securities measured at FVOCI are initially recorded at fair value plus transaction costs. They are subsequently measured at fair value, with unrealized gains and losses recorded in our Consolidated Statement of Comprehensive Income until the security is sold or impaired. Gains and losses on disposal and impairment losses (recoveries) are recorded in our Consolidated Statement of Income in non-interest Equity securities at FVOCI Other securities We account for all of our securities transactions using settlement date accounting in our Consolidated Balance Sheet. Changes in fair value between the trade date and settlement date are recorded in net income, except for those related to securities measured at FVOCI, which are recorded in other comprehensive income. Impairment Review Debt securities at amortized cost or FVOCI are assessed for impairment using the ECL model, with the exception of securities determined to have low credit risk, where the allowance for credit losses is measured at a 12 month expected credit loss. A financial asset is considered to have low credit risk if the financial asset has a low risk of default, the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flow obligations. Debt securities at amortized cost totalling $24,472 million as at October 31, 2019 ($6,485 million as at October 31, 2018) are net of allowances for credit losses of $1 million as at October 31, 2019 ($1 million as at October 31, 2018). Debt securities at FVOCI totalling $64,434 million as at October 31, 2019 ($62,378 million as at October 31, 2018) are net of allowances for credit losses of $2 million as at October 31, 2019 ($2 million as at October 31, 2018). Equity securities at FVOCI totalling $81 million as at October 31, 2019 ($62 million as at October 31, 2018) are not subject to an impairment assessment . Fair Value Measurement For traded securities, quoted market value is considered to be fair value. Quoted market value is based on bid or ask prices, depending on which is the most appropriate to measure fair value. Where market quotes are not available, we use estimation techniques to determine fair value. Additional information regarding fair value measurement techniques is included in Note 17. Remaining Term to Maturity of Securities (Canadian $ in millions, except as noted) Term to maturity 2019 2018 Within 1 1 to 3 3 to 5 5 to 10 Over 10 No Total Total Trading Securities Issued or guaranteed by: Canadian federal government 1,860 3,302 1,414 829 925 – 8,330 10,320 Canadian provincial and municipal governments 921 1,122 735 1,170 3,579 – 7,527 8,702 U.S. federal government 859 3,677 2,432 1,620 175 – 8,763 9,517 U.S. states, municipalities and agencies 232 124 52 195 71 – 674 1,216 Other governments 437 719 296 133 – – 1,585 1,412 NHA MBS, U.S. agency MBS and CMO (1) 226 171 208 203 10,238 – 11,046 9,184 Corporate debt 1,293 1,613 1,408 1,297 2,107 – 7,718 9,198 Trading loans 7 31 41 24 – – 103 199 Corporate equity – – – – – 40,157 40,157 49,949 Total trading securities 5,835 10,759 6,586 5,471 17,095 40,157 85,903 99,697 FVTPL Securities Issued or guaranteed by: Canadian federal government 392 4 2 3 116 – 517 431 Canadian provincial and municipal governments 12 10 5 53 1,199 – 1,279 946 U.S. federal government 48 – – – – – 48 69 Other governments – – 49 – – – 49 – NHA MBS, U.S. agency MBS and CMO (1) – 5 – – – – 5 7 Corporate debt 578 71 128 1,083 6,357 – 8,217 6,820 Corporate equity – – – – – 3,589 3,589 3,338 Total FVTPL securities 1,030 90 184 1,139 7,672 3,589 13,704 11,611 FVOCI Securities Issued or guaranteed by: Canadian federal government Amortized cost 5,618 2,090 3,059 1,109 – – 11,876 12,884 Fair value 5,617 2,098 3,106 1,123 – – 11,944 12,805 Yield (%) 1.60 1.48 2.01 1.97 – – 1.72 1.64 Canadian provincial and municipal governments Amortized cost 1,406 1,720 2,428 353 – – 5,907 6,896 Fair value 1,406 1,740 2,503 363 – – 6,012 6,862 Yield (%) 1.67 2.32 2.63 3.05 – – 2. 34 1.90 U.S. federal government Amortized cost 5 3,770 5,095 6,493 – – 15,363 17,403 Fair value 8 3,820 5,222 6,925 – – 15,975 16,823 Yield (%) 1.90 2.23 2.15 2.74 – – 2.42 2.22 U.S. states, municipalities and agencies Amortized cost 389 703 961 1,036 1,002 – 4,091 3,694 Fair value 389 709 991 1,065 1,007 – 4,161 3,655 Yield (%) 1.93 2.21 2.57 2.67 3.00 – 2.58 2.42 Other governments Amortized cost 947 2,691 3,466 75 – – 7,179 4,818 Fair value 951 2,727 3,582 75 – – 7,335 4,790 Yield (%) 1.27 2.53 2.56 3.17 – – 2.38 2.39 NHA MBS (1) Amortized cost 29 409 1,515 – – – 1,953 2,382 Fair value 30 411 1,529 – – – 1,970 2,370 Yield (%) 2.13 1.71 2.31 – – – 2.18 1.98 U.S. agency MBS and CMO (1) Amortized cost 12 58 146 2,361 9,389 – 11,966 11,811 Fair value 13 58 150 2,416 9,393 – 12,030 11,317 Yield (%) 2.16 2.28 2.95 2.81 1.96 – 2.14 2.33 Corporate debt Amortized cost 1,196 2,336 1,312 35 20 – 4,899 3,783 Fair value 1,197 2,378 1,374 37 21 – 5,007 3,756 Yield (%) 1.28 2.76 3.06 3.09 3.32 – 2.48 2.67 Corporate equity Cost – – – – – 79 79 62 Fair value – – – – – 81 81 62 Total cost or amortized cost 9,602 13,777 17,982 11,462 10,411 79 63,313 63,733 Total fair value 9,611 13,941 18,457 12,004 10,421 81 64,515 62,440 Yield (%) 1. 55 2.26 2.38 2.69 2.06 – 2.2 3 2.13 Amortized Cost Securities Issued or guaranteed by: Canadian federal government Amortized cost – 701 3,018 813 – – 4,532 – Fair value – 701 3,021 812 – – 4,534 – Canadian provincial and municipal governments Amortized cost 290 399 1,460 1,404 – – 3,553 832 Fair value 291 399 1,481 1,405 – – 3,576 841 U.S. federal government Amortized cost – 2,236 1,339 2,638 – – 6,213 – Fair value – 2,245 1,339 2,630 – – 6,214 – Other governments Amortized cost 3 667 334 45 – – 1,049 10 Fair value 3 667 334 45 – – 1,049 10 NHA MBS, U.S. agency MBS and CMO (1) Amortized cost 131 366 642 2,073 5,062 – 8,274 5,552 Fair value 131 368 654 2,116 5,129 – 8,398 5,346 Corporate debt Amortized cost 175 306 201 110 59 – 851 91 Fair value 175 305 202 110 59 – 851 91 Total cost or amortized cost 599 4,675 6,994 7,083 5,121 – 24,472 6,485 Total fair value 600 4,685 7,031 7,118 5,188 – 24,622 6,288 Other Securities Carrying value – – – – – 844 844 702 Total carrying value or amortized cost of securities 17,066 29,301 31,746 25,155 40,299 44,669 188,236 182,228 Total value of securities 17,075 29,465 32,221 25,697 40,309 44,671 189,438 180,935 Total by Currency Canadian dollar 13,507 10,843 13,417 7,314 14,102 26,722 85,905 82,767 U.S. dollar 2,691 18,392 18,656 18,373 26,204 16,257 100,573 96,266 Other currencies 877 230 148 10 3 1,692 2,960 1,902 Total securities 17,075 29,465 32,221 25,697 40,309 44,671 189,438 180,935 (1) These amounts are supported by insured mortgages or issued by U.S. agencies and government-sponsored enterprises. NHA refers to the National Housing Act, MBS refers to mortgage-backed securities and CMO refers to collateralized mortgage obligations. Yields in the table above are calculated using the cost of the security and the contractual interest rate associated with each security, adjusted for any amortization of premiums and discounts. Tax effects are not taken into consideration. The term to maturity included in the table above is based on the contractual maturity date of the security. Actual maturities could differ, as issuers may have the right to call or prepay obligations. Unrealized Gains and Losses on FVOCI Securities The following table summarizes the unrealized gains and losses: (Canadian $ in millions) 2019 2018 Amortized Gross Gross Fair Amortized Gross Gross Fair Issued or guaranteed by: Canadian federal government 11,876 72 4 11,944 12,884 1 80 12,805 Canadian provincial and municipal governments 5,907 106 1 6,012 6,896 8 42 6,862 U.S. federal government 15,363 617 5 15,975 17,403 4 584 16,823 U.S. states, municipalities and agencies 4,091 74 4 4,161 3,694 16 55 3,655 Other governments 7,179 158 2 7,335 4,818 2 30 4,790 NHA MBS 1,953 18 1 1,970 2,382 6 18 2,370 U.S. agency MBS and CMO 11,966 106 42 12,030 11,811 2 496 11,317 Corporate debt 4,899 110 2 5,007 3,783 6 33 3,756 Corporate equity 79 2 – 81 62 – – 62 Total 63,313 1,263 61 64,515 63,733 45 1,338 62,440 Unrealized gains (losses) may be offset by related (losses) gains on hedge contracts. Interest, Dividend and Fee Income Interest, dividend and fee income has been included in our Consolidated Statement of Income as follows, excluding other securities and trading securities. Related income for trading securities is included under Trading-Related Revenue in Note 17. (Canadian $ in millions) 2019 2018 2017 FVTPL 34 16 na FVOCI 1,585 1,118 na Amortized cost 268 172 na Available-for-sale na na 662 Held-to-maturity na na 150 Total 1,887 1,306 812 na – not applicable due to IFRS 9 adoption. Non-Interest Net gains and losses from securities, excluding net realized and unrealized gains on trading securities, have been included in our Consolidated Statement of Income as follows: (Canadian $ in millions) 2019 2018 2017 Non-Interest FVTPL securities 164 93 na FVOCI securities (1) Gross realized gains 209 363 228 Gross realized (losses) (123 ) (216 ) (99 ) Other securities, net realized and unrealized gains – – 49 Impairment losses (1 ) (1 ) (7 ) Securities gains, other than trading (2) 249 239 171 (1) Realized gains (losses) are net of unrealized gains (losses) on related hedge contracts. Fiscal 2017 represents available-for-sale (2) The following amounts of income related to our insurance operations were included in non-interest Unrealized gains and losses on trading securities are included in trading-related revenue in Note 17. na – not applicable due to IFRS 9 adoption. Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses | 12 Months Ended |
Oct. 31, 2019 | |
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Loans and Allowance for Credit Losses | Note 4: Loans and Allowance for Credit Losses Loans are initially measured at fair value plus directly attributable costs, and are subsequently measured at amortized cost using the effective interest method where the cash flows of those loans represent solely payments of principal and interest, otherwise those loans are measured at FVTPL. The effective interest method allocates interest income over the expected term of the loan by applying the effective interest rate to the carrying amount of the loan. The effective interest rate is defined as the rate that exactly discounts estimated future cash receipts through the expected term of the loan to the net carrying amount of the loan. Under the effective interest method, the amount recognized in interest, dividend and fee income, loans, varies over the term of the loan based on the principal outstanding. The treatment of interest income for impaired loans is described below. Securities Borrowed or Purchased Under Resale Agreements Securities borrowed or purchased under resale agreements represent the amounts we will receive as a result of our commitment to return or resell securities that we have borrowed or purchased, back to the original lender or seller, on a specified date at a specified price. We account for these instruments as if they were loans. Lending Fees Lending fees arise in Personal and Commercial Banking and Capital Markets. The accounting treatment for lending fees varies depending on the transaction. Some loan origination, restructuring and renegotiation fees are recorded as interest income over the term of the loan, while other lending fees are taken into income at the time of loan origination. Commitment fees are calculated as a percentage of the facility balance at the end of the period. The fees are recorded as interest income over the term of the loan, unless we believe the loan commitment will not be used. In the latter case, commitment fees are recorded as lending fees earned over the commitment period. Loan syndication fees are payable and included in lending fees at the time the syndication is completed, unless the yield on any loans we retain is less than that of other comparable lenders involved in the financing. In the latter case, an appropriate portion of the syndication fee is recorded as interest income over the term of the loan. Impaired Loans We classify a loan as impaired (Stage 3) when one or more loss events have occurred, such as bankruptcy, default or delinquency. Generally, consumer loans in both Canada and the U.S. are classified as impaired when payment is contractually 90 days past due, or one year past due for residential mortgages if guaranteed by the Government of Canada. Credit card loans are immediately written off when principal or interest payments are 180 days past due, and are not reported as impaired. In Canada, consumer instalment loans, other personal loans and some small business loans are normally written off when they are one year past due. In the U.S., all consumer loans are generally written off when they are 180 days past due, except for non-real Corporate and commercial loans are classified as impaired when we determine there is no longer reasonable assurance that principal or interest will be collected in their entirety on a timely basis. Generally, we consider corporate and commercial loans to be impaired when payments are 90 days past due. Corporate and commercial loans are written off following a review on an individual loan basis that confirms all recovery attempts have been exhausted. A loan will be reclassified to performing status when we determine that there is reasonable assurance of full and timely repayment of interest and principal in accordance with the terms and conditions of the loan, and that none of the criteria for classification of the loan as impaired continue to apply. Loans are in default when the borrower is unlikely to pay its credit obligations in full without recourse by the bank, such as realizing security, or when the borrower’s payments are past due more than 90 days (180 days for credit card loans). Overdrafts are considered to be past due once the customer has breached an advised limit or has been advised of a limit smaller than currently outstanding or, in the case of retail overdrafts, has not brought the overdraft down to a $nil balance within a specified time period. Our average gross impaired loans were $2,285 million for the year ended October 31, 2019 ($2,115 million in 2018). Our average impaired loans, net of the specific allowance, were $1,864 million for the year ended October 31, 2019 ($1,706 million in 2018). Once a loan is identified as impaired, we continue to recognize interest income based on the original effective interest rate on the loan amount net of its related allowance. In the periods following the recognition of impairment, adjustments to the allowance for these loans reflecting the time value of money are recognized as interest income. Interest income on impaired loans of $80 million was recognized for the year ended October 31, 2019 ($67 million in 2018 and $75 million in 2017). During the year ended October 31, 2019, we recorded a net gain of $11 million before tax ($4 million in 2018 and $28 million in 2017) on the sale of impaired and written-off loans. Allowance for Credit Losses (“ACL”) The allowance for credit losses recorded in our Consolidated Balance Sheet is maintained at a level that we consider adequate to absorb credit-related losses on our loans and other credit instruments. The allowance for credit losses amounted to $2,094 million as at October 31, 2019 ($1,870 million in 2018), of which $1,850 million ($1,639 million in 2018) was recorded in loans and $244 million ($231 million in 2018) was recorded in other liabilities in our Consolidated Balance Sheet. Significant changes in the gross balances, including originations, maturities and repayments in the normal course of operations, impact the allowance for credit losses. Allowance on Performing Loans We maintain an allowance in order to cover impairment in the existing portfolio for loans that have not yet been individually identified as impaired. Our approach to establishing and maintaining the allowance on performing loans is based on the requirements of IFRS, considering guidelines issued by OSFI. Under the IFRS 9 ECL methodology, an allowance is recorded for expected credit losses on financial assets regardless of whether there has been an actual impairment. We recognize a loss allowance at an amount generally equal to 12 month expected credit losses, if the credit risk at the reporting date has not increased significantly since initial recognition (Stage 1). We will record expected credit losses over the remaining life of performing financial assets which are considered to have experienced a significant increase in credit risk (Stage 2). The determination of a significant increase in credit risk takes into account many different factors and varies by product and risk segment. The main factors considered in making this determination are relative changes in probability-weighted probability of default (“PD”) since origination and certain other criteria, such as 30-day For each exposure, ECL is a function of the PD, exposure at default (“EAD”) and loss given default (“LGD”), with the timing of the loss also considered, and is estimated by incorporating forward-looking economic information and through the use of experienced credit judgment to reflect factors not captured in ECL models. PD represents the likelihood that a loan will not be repaid and will go into default in either a 12 month horizon for Stage 1 or a lifetime horizon for Stage 2. The PD for each individual instrument is modelled based on historical data and is estimated based on current market conditions and reasonable and supportable information about future economic conditions. EAD is modelled based on historical data and represents an estimate of the outstanding amount of credit exposure at the time a default may occur. For off-balance LGD is the amount that may not be recovered in the event of default and is modelled based on historical data and reasonable and supportable information about future economic conditions, where appropriate. LGD takes into consideration the amount and quality of any collateral held. We consider past events, current market conditions and reasonable forward-looking supportable information about future economic conditions in calculating the amount of expected losses. In assessing information about possible future economic conditions, we utilize multiple economic scenarios, including our base case, which represents, in our view, the most probable outcome, as well as benign and adverse forecasts, all of which are developed by our Economics group. Key economic variables used in the determination of the allowance for credit losses reflect the geographic diversity of our portfolios, where appropriate. In considering the lifetime of a loan, the contractual period of the loan, including prepayment, extension and other options, is generally used. For revolving instruments, such as credit cards, which may not have a defined contractual period, the lifetime is based on historical behaviour. Our ECL methodology also requires the use of experienced credit judgment to incorporate the estimated impact of factors that are not captured in the modelled ECL results. Allowance on Impaired Loans We maintain an allowance on individually identified impaired loans (Stage 3) of $463 million as at October 31, 2019 ($370 million as at October 31, 2018) on our gross impaired loans of $2,629 million as at October 31, 2019 ($1,936 million as at October 31, 2018), to reduce their carrying value to an expected recoverable amount of $2,166 million as at October 31, 2019 ($1,566 million as at October 31, 2018). We review our loans on an ongoing basis to assess whether any loans should be classified as impaired and whether an allowance or write-off Individually Significant Impaired Loans To determine the amount we expect to recover from an individually significant impaired loan, we use the value of the estimated future cash flows discounted at the loan’s original effective interest rate. The determination of estimated future cash flows of a collateralized impaired loan reflects the expected realization of the underlying security, net of expected costs and any amounts legally required to be paid to the borrower. Security can vary by type of loan and may include cash, securities, real estate properties, accounts receivable, guarantees, inventory or other capital assets. Individually Insignificant Impaired Loans Residential mortgages and consumer instalment and other personal loans are individually insignificant and may be assessed individually or collectively for losses at the time of impairment, taking into account historical loss experience and expectations of future economic conditions. Collectively assessed loans are grouped together by similar risk characteristics, such as type of instrument, geographic location, industry, type of collateral and term to maturity. Loans: Credit Risk Exposure The following tables set out our credit risk exposure for all loans carried at amortized cost , or (Canadian $ in millions) October 31, 2019 Stage 1 Stage 2 Stage 3 Total Loans: Residential mortgages Exceptionally low – – – – Very low 79,011 242 – 79,253 Low 20,853 2,821 – 23,674 Medium 13,651 4,578 – 18,229 High 124 397 – 521 Not rated 1,531 118 – 1,649 Impaired – – 414 414 Allowance for credit losses 15 32 17 64 Carrying amount 115,155 8,124 397 123,676 Loans: Consumer instalment and other personal Exceptionally low 21,023 25 – 21,048 Very low 16,491 194 – 16,685 Low 9,894 346 – 10,240 Medium 10,510 4,264 – 14,774 High 397 1,423 – 1,820 Not rated 2,594 107 – 2,701 Impaired – – 468 468 Allowance for credit losses 82 318 136 536 Carrying amount 60,827 6,041 332 67,200 Loans: Credit cards Exceptionally low 2,418 – – 2,418 Very low 1,214 16 – 1,230 Low 970 158 – 1,128 Medium 2,020 876 – 2,896 High 140 440 – 580 Not rated 606 1 – 607 Impaired – – – – Allowance for credit losses 43 193 – 236 Carrying amount 7,325 1,298 – 8,623 Loans: Business and government (1) Acceptable Investment grade 134,587 1,028 – 135,615 Sub-investment 96,731 11,553 – 108,284 Watchlist – 5,556 – 5,556 Impaired – – 1,747 1,747 Allowance for credit losses 263 441 310 1,014 Carrying amount 231,055 17,696 1,437 250,188 Commitments and financial guarantee contracts Acceptable Investment grade 134,920 884 – 135,804 Sub-investment 45,178 6,435 – 51,613 Watchlist – 2,133 – 2,133 Impaired – – 324 324 Allowance for credit losses 119 103 22 244 Carrying amount (2) 179,979 9,349 302 189,630 (1) Includes customers’ liability under acceptances. (2) Represents the total contractual amounts of undrawn credit facilities and other off - (Canadian $ in millions) October 31, 2018 Stage 1 Stage 2 Stage 3 Total Loans: Residential mortgages Exceptionally low – – – – Very low 76,314 125 – 76,439 Low 18,975 2,479 – 21,454 Medium 12,621 3,765 – 16,386 High 90 445 – 535 Not rated 4,250 181 – 4,431 Impaired – – 375 375 Allowance for credit losses 20 37 19 76 Carrying amount 112,230 6,958 356 119,544 Loans: Consumer instalment and other personal Exceptionally low 20,236 20 – 20,256 Very low 13,364 222 – 13,586 Low 12,581 364 – 12,945 Medium 7,707 4,153 – 11,860 High 357 1,427 – 1,784 Not rated 2,105 168 – 2,273 Impaired – – 521 521 Allowance for credit losses 83 312 143 538 Carrying amount 56,267 6,042 378 62,687 Loans: Credit cards Exceptionally low 2,403 4 – 2,407 Very low 1,140 11 – 1,151 Low 943 107 – 1,050 Medium 1,742 874 – 2,616 High 108 428 – 536 Not rated 568 1 – 569 Impaired – – – – Allowance for credit losses 39 191 – 230 Carrying amount 6,865 1,234 – 8,099 Loans: Business and government (1) Acceptable Investment grade 109,774 2,148 – 111,922 Sub-investment 88,348 7,308 – 95,656 Watchlist – 4,423 – 4,423 Impaired – – 1,040 1,040 Allowance for credit losses 232 355 208 795 Carrying amount 197,890 13,524 832 212,246 Commitments and financial guarantee contracts Acceptable Investment grade 116,108 1,722 – 117,830 Sub-investment 44,895 3,426 – 48,321 Watchlist – 1,650 – 1,650 Impaired – – 242 242 Allowance for credit losses 108 96 27 231 Carrying amount (2) 160,895 6,702 215 167,812 (1) Includes customers’ liability under acceptances. (2) Represents the total contractual amounts of undrawn credit facilities and other off - Certain comparative figures have been reclassified to conform with the current year’s presentation. The following table shows the continuity in the loss allowance, by product type, for the year ended October 31, 2019: (Canadian $ in millions) For the year ended Stage 1 Stage 2 Stage 3 Total Loans: Residential mortgages Balance as at October 31, 2018 20 38 44 102 Transfer to Stage 1 (1) 27 (25 ) (2 ) – Transfer to Stage 2 (1) (2 ) 7 (5 ) – Transfer to Stage 3 (1) – (8 ) 8 – Net remeasurement of loss allowance (2) (35 ) 26 15 6 Loan originations 7 – – 7 Derecognitions and maturities (2 ) (4 ) – (6 ) Total provision for credit losses (“PCL”) (3) (5 ) (4 ) 16 7 Write-offs (4) – – (19 ) (19 ) Recoveries of previous write-offs – – 13 13 Foreign exchange and other – (1 ) (16 ) (17 ) Balance as at October 31, 2019 15 33 38 86 Loans: Consumer instalment and other personal Balance as at October 31, 2018 90 326 144 560 Transfer to Stage 1 (1) 174 (161 ) (13 ) – Transfer to Stage 2 (1) (18 ) 85 (67 ) – Transfer to Stage 3 (1) (5 ) (109 ) 114 – Net remeasurement of loss allowance (2) (183 ) 232 167 216 Loan originations 48 – – 48 Derecognitions and maturities (16 ) (40 ) – (56 ) Total PCL (3) – 7 201 208 Write-offs (4) – – (306 ) (306 ) Recoveries of previous write-offs – – 118 118 Foreign exchange and other (1 ) – (21 ) (22 ) Balance as at October 31, 2019 89 333 136 558 Loans: Credit cards Balance as at October 31, 2018 74 219 – 293 Transfer to Stage 1 (1) 107 (107 ) – – Transfer to Stage 2 (1) (21 ) 21 – – Transfer to Stage 3 (1) (1 ) (173 ) 174 – Net remeasurement of loss allowance (2) (96 ) 288 72 264 Loan originations 20 – – 20 Derecognitions and maturities (4 ) (24 ) – (28 ) Total PCL (3) 5 5 246 256 Write-offs (4) – – (339 ) (339 ) Recoveries of previous write-offs – – 93 93 Foreign exchange and other 1 1 – 2 Balance as at October 31, 2019 80 225 – 305 Loans: Business and government Balance as at October 31, 2018 298 408 209 915 Transfer to Stage 1 (1) 201 (187 ) (14 ) – Transfer to Stage 2 (1) (50 ) 65 (15 ) – Transfer to Stage 3 (1) (1 ) (66 ) 67 – Net remeasurement of loss allowance (2) (214 ) 353 250 389 Loan originations 199 – – 199 Derecognitions and maturities (102 ) (82 ) – (184 ) Total PCL (3) 33 83 288 404 Write-offs (4) – – (203 ) (203 ) Recoveries of previous write-offs – – 66 66 Foreign exchange and other 7 5 (49 ) (37 ) Balance as at October 31, 2019 338 496 311 1,145 Total as at October 31, 2019 522 1,087 485 2,094 Comprised of: Loans 403 984 463 1,850 Other credit instruments (5) 119 103 22 244 (1) Transfers represent the amount of ECL that moved between stages during the period, for example, moving from a 12-month (Stage 1) to lifetime (Stage 2) ECL measurement basis. (2) Net remeasurements represent the ECL impact due to stage transfers, changes in economic forecasts and credit quality. (3) Excludes PCL on other assets of $(3) million. (4) Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. (5) Recorded in other liabilities on the Consolidated Balance Sheet. The following table shows the continuity in the loss allowance, by product type, for the year ended October 31, 2018: (Canadian $ in millions) For the year ended Stage 1 Stage 2 Stage 3 Total Loans: Residential mortgages Balance as at November 1, 2017 16 34 49 99 Transfer to Stage 1 (1) 34 (31 ) (3 ) – Transfer to Stage 2 (1) (1 ) 7 (6 ) – Transfer to Stage 3 (1) – (9 ) 9 – Net remeasurement of loss allowance (2) (37 ) 42 19 24 Loan originations 10 – – 10 Derecognitions and maturities (2 ) (6 ) – (8 ) Total PCL (3) 4 3 19 26 Write-offs (4) – – (20 ) (20 ) Recoveries of previous write-offs – – 7 7 Foreign exchange and other – 1 (11 ) (10 ) Balance as at October 31, 2018 20 38 44 102 Loans: Consumer instalment and other personal Balance as at November 1, 2017 76 357 137 570 Transfer to Stage 1 (1) 214 (200 ) (14 ) – Transfer to Stage 2 (1) (22 ) 105 (83 ) – Transfer to Stage 3 (1) (4 ) (162 ) 166 – Net remeasurement of loss allowance (2) (196 ) 272 162 238 Loan originations 39 – – 39 Derecognitions and maturities (18 ) (50 ) – (68 ) Total PCL (3) 13 (35 ) 231 209 Write-offs (4) – – (301 ) (301 ) Recoveries of previous write-offs – – 92 92 Foreign exchange and other 1 4 (15 ) (10 ) Balance as at October 31, 2018 90 326 144 560 Loans: Credit cards Balance as at November 1, 2017 83 254 – 337 Transfer to Stage 1 (1) 177 (177 ) – – Transfer to Stage 2 (1) (37 ) 37 – – Transfer to Stage 3 (1) (1 ) (195 ) 196 – Net remeasurement of loss allowance (2) (164 ) 342 20 198 Loan originations 19 – – 19 Derecognitions and maturities (3 ) (42 ) – (45 ) Total PCL (3) (9 ) (35 ) 216 172 Write-offs (4) – – (319 ) (319 ) Recoveries of previous write-offs – – 103 103 Balance as at October 31, 2018 74 219 – 293 Loans: Business and government Balance as at November 1, 2017 268 410 234 912 Transfer to Stage 1 (1) 136 (128 ) (8 ) – Transfer to Stage 2 (1) (31 ) 66 (35 ) – Transfer to Stage 3 (1) (1 ) (61 ) 62 – Net remeasurement of loss allowance (2) (155 ) 203 215 263 Loan originations 163 – – 163 Derecognitions and maturities (80 ) (86 ) – (166 ) Model changes (5) (7 ) (3 ) – (10 ) Total PCL (3) 25 (9 ) 234 250 Write-offs (4) – – (297 ) (297 ) Recoveries of previous write-offs – – 59 59 Foreign exchange and other 5 7 (21 ) (9 ) Balance as at October 31, 2018 298 408 209 915 Total as at October 31, 2018 482 991 397 1,870 Comprised of: Loans 374 895 370 1,639 Other credit instruments (6) 108 96 27 231 (1) Transfers represent the amount of ECL that moved between stages during the period, for example, moving from a 12-month (Stage 1) to lifetime (Stage 2) ECL measurement basis. (2) Net remeasurements represent the ECL impact due to stage transfers, changes in economic forecasts and credit quality. (3) Excludes PCL on other assets of $5 million. (4) Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. (5) Model changes represent calibration of models to forward-looking information and changes due to regulatory reform. (6) Recorded in other liabilities on the Consolidated Balance Sheet. Loans and allowance for credit losses by geographic region as at October 31, 2019 and 2018 are as follows: (Canadian $ in millions) 2019 2018 Gross Allowance on Allowance on Net Gross Allowance on Allowance on Net By geographic region: (1) Canada 258,842 207 740 257,895 243,261 189 689 242,383 United States 158,454 256 630 157,568 132,789 181 574 132,034 Other countries 10,648 – 17 10,631 9,580 – 6 9,574 Total 427,944 463 1,387 426,094 385,630 370 1,269 383,991 (1) Geographic region is based upon the country of ultimate risk. (2) Excludes allowance for credit losses on impaired loans of $22 million for other credit instruments, which is included in other liabilities ($27 million in 2018). (3) Excludes allowance for credit losses on performing loans of $222 million for other credit instruments, which is included in other liabilities ($204 million in 2018). Certain comparative figures have been reclassified to conform with the current year’s presentation. Impaired (Stage 3) loans, including the related allowances, as at October 31, 2019 and 2018 are as follows: (Canadian $ in millions) Gross impaired amount Allowance on impaired loans (2) Net impaired amount 2019 2018 2019 2018 2019 2018 Residential mortgages 414 375 17 19 397 356 Consumer instalment and other personal loans 468 521 136 143 332 378 Business and government loans 1,747 1,040 310 208 1,437 832 Total 2,629 1,936 463 370 2,166 1,566 By geographic region: (1) Canada 914 735 207 189 707 546 United States 1,715 1,201 256 181 1,459 1,020 Other countries – – – – – – Total 2,629 1,936 463 370 2,166 1,566 (1) Geographic region is based upon the country of ultimate risk. (2) Excludes allowance for credit losses on impaired loans of $22 million for other credit instruments, which is included in other liabilities ($27 million in 2018). Fully secured loans with amounts past due between 90 and 180 days that we have not classified as impaired totalled $54 million and $49 million as at October 31, 2019 and 2018, respectively. Loans Past Due Not Impaired Loans that are past due but not classified as impaired are loans where our customers have failed to make payments when contractually due but for which we expect the full amount of principal and interest payments to be collected, or loans which are held at fair value. The following table presents loans that are past due but not classified as impaired as at October 31, 2019 and 2018. (Canadian $ in millions) 1 to 29 days 30 to 89 days 90 days or more Total 2019 2018 2019 2018 2019 2018 2019 2018 Residential mortgages 806 660 465 513 16 21 1,287 1,194 Credit card, consumer instalment and other personal loans 1,590 1,431 426 415 87 88 2,103 1,934 Business and government loans 351 611 207 268 59 55 617 934 Total 2,747 2,702 1,098 1,196 162 164 4,007 4,062 ECL Sensitivity and Key Economic Variables The allowance for performing loans is sensitive to changes in both economic forecasts and the probability-weight assigned to each forecast scenario. Many of the factors have a high degree of interdependency, although there is no single factor to which loan impairment allowances as a whole are sensitive. If we assumed a 100% base case economic forecast and included the impact of loan migration by restaging, with other assumptions held constant including the application of experienced credit judgment, the allowance for performing loans would be approximately $1,325 million as at October 31, 2019 ($1,250 million in 2018) compared to the reported allowance for performing loans of $1,609 million ($1,473 million in 2018). If we assumed a 100% adverse economic forecast and included the impact of loan migration by restaging, with other assumptions held constant including the application of experienced credit judgment, the allowance for performing loans would be approximately $2,800 million as at October 31, 2019 ($2,650 million in 2018) compared to the reported allowance for performing loans of $1,609 million ($1,473 million in 2018). Actual results in a recession will differ as our portfolio will change through time due to migration, growth, risk mitigation actions and other factors. In addition, our allowance will reflect the three economic scenarios used in assessing the allowance, with weightings attached to adverse and benign scenarios often unequally weighted , The following table shows the key economic variables we use to estimate our allowance on performing loans during the forecast period. The values shown represent the end of period national average values for the first 12 months and then the national average for the remaining horizon. While the values disclosed below are national variables, in our underlying models we use regional variables where considered appropriate. Benign scenario Base scenario Adverse scenario As at October 31 First 12 months Remaining horizon First 12 months Remaining horizon First 12 months Remaining horizon 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Real gross domestic product (2) Canada 2.9% 3.1% 2.3% 2.4% 1.6% 1.8% 1.6% 1.6% (3.2)% (3.2)% 0.8% 0.8% U.S. 2.4% 2.9% 2.3% 1.9% 1.8% 2.4% 1.9% 1.6% (2.9)% (2.9)% 0.9% 0.9% Corporate BBB 10-year Canada 2.0% 2.0% 2.1% 2.1% 2.3% 2.3% 2.3% 2.3% 4.7% 4.7% 3.9% 3.9% U.S. 1.8% 1.8% 2.0% 2.0% 2.4% 2.2% 2.4% 2.3% 4.3% 4.3% 3.4% 3.5% Unemployment rates Canada 5.1% 5.4% 4.9% 5.2% 5.7% 5.6% 5.9% 5.6% 8.9% 9.3% 8.9% 9.3% U.S. 3.3% 3.2% 3.2% 3.1% 3.7% 3.6% 3.8% 3.7% 6.5% 6.7% 6.6% 6.8% Housing Price Index Canada (3) 3.7% 2.4% 3.6% 2.6% 1.8% 1.4% 2.5% 1.8% (12.8)% (12.8)% (3.2)% (3.2)% U.S. (4) 4.5% 5.1% 4.1% 4.3% 3.0% 3.6% 2.7% 3.0% (7.3)% (7.3)% (1.2)% (1.2)% (1) The remaining forecast period is two years. (2) Real gross domestic product is based on year over year growth. (3) In Canada, we use the HPI Benchmark Composite. (4) In the U.S., we use the National Case-Shiller House Price Index. The ECL approach requires the recognition of credit losses generally based on 12 months of expected losses for performing loans (Stage 1) and the recognition of lifetime expected losses on performing loans that have experienced a significant increase in credit risk since origination (Stage 2). Under our current probability-weighted scenarios, if all our performing loans were in Stage 1, our models would generate an allowance for performing loans of approximately $1,050 million compared to the reported allowance for performing loans of $1,609 million as at October 31, 2019 ($1,000 million compared to the reported allowance for performing loans of $1,473 million as at October 31, 2018). Renegotiated Loans From time to time we modify the contractual terms of a loan due to the poor financial condition of the borrower. We assess renegotiated loans for impairment consistent with our existing policies for impairment. When renegotiation leads to significant concessions being granted, and the concessions are for economic or legal reasons related to the borrower’s financial difficulty that we would not otherwise consider, the loan is classified as impaired. We consider one or a combination of the following to be significant concessions: (1) a reduction of the stated interest rate, (2) an extension of the maturity date or dates at a stated interest rate lower than the current market rate for a new loan with similar terms, or (3) forgiveness of principal or accrued interest. Renegotiated loans are permitted to remain in performing status if the modifications are not considered to be significant, or are returned to performing status when none of the criteria for classification as impaired continue to apply. The carrying value of our renegotiated loans modified during the year was $229 million as at October 31, 2019 ($253 million as at October 31, 2018). Renegotiated loans of $36 million ($53 million in 2018 and $36 million in 2017) were written off during the year ended October 31, 2019. As at October 31, 2019, $66 million ($93 million as at October 31, 2018) of loans previously renegotiated saw their loss allowance change during the year from lifetime to 12-month expected credit loss. Foreclosed Assets Property or other assets that we receive from borrowers to satisfy their loan commitments are classified as either held-for-use or held-for-sale according to management’s intention and are initially recorded at their carrying amount. During the year ended October 31, 2019, we foreclosed on impaired loans and received $125 million of real estate properties that we classified as held for sale ($117 million in 2018). As at October 31, 2019, real estate properties held for sale totalled $62 million ($58 million in 2018). These properties are disposed of when considered appropriate. Collateral Collateral is used to manage credit risk related to securities borrowed or purchased under resale agreements, residential mortgages, consumer instalment and other personal loans and business and government loans. Additional information on our collateral requirements is included in Notes 14 and 24, as well as in the blue-tinted font in the Enterprise-Wide Risk Management section of Management’s Discussion and Analysis on pages 78 to 80 of this report. |
Risk Management
Risk Management | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Risk Management | Note 5: Risk Management We have an enterprise-wide approach to the identification, measurement, monitoring and control of risks faced across our organization. The key risks related to our financial instruments are classified as credit and counterparty, market, and liquidity and funding risk. Credit and Counterparty Risk Credit and counterparty risk is the potential for loss due to the failure of a borrower, endorser, guarantor or counterparty to repay a loan or honour another predetermined financial obligation. Credit risk arises predominantly with respect to loans, over-the-counter Our risk management practices and key measures are disclosed in the blue-tinted font in the Enterprise-Wide Risk Management section of Management’s Discussion and Analysis on pages 78 to 8 2 Market Risk Market risk is the potential for adverse changes in the value of our assets and liabilities resulting from changes in market variables such as interest rates, foreign exchange rates, equity and commodity prices and their implied volatilities, and credit spreads, and includes the risk of credit migration and default in our trading book. We incur market risk in our trading and underwriting activities and in the management of structural market risk in our banking and insurance activities. Our market risk management practices and key measures are disclosed in the blue-tinted font in the Enterprise-Wide Risk Management section of Management’s Discussion and Analysis on pages 86 to 90 of this report. Liquidity and Funding Risk Liquidity and funding risk is the potential for loss if we are unable to meet our financial commitments in a timely manner at reasonable prices as they become due. It is our policy to ensure that sufficient liquid assets and funding capacity are available to meet financial commitments, including liabilities to depositors and suppliers, and lending, investment and pledging commitments, even in times of stress. Managing liquidity and funding risk is essential to maintaining enterprise soundness and safety, depositor confidence and earnings stability. Our liquidity and funding risk management practices and key measures are disclosed in the blue-tinted font in the Enterprise-Wide |
Transfer of Assets
Transfer of Assets | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Transfer of Assets | Note 6: Transfer of Assets Loan Securitization We sell Canadian residential mortgages to third-party Canadian securitization programs, including the Canada Mortgage Bond program, directly to third-party investors under the National Housing Act Mortgage-Backed Securities (“NHA-MBS”) program and under our own program. We assess whether substantially all of the risks and rewards of or control over the loans have been transferred to determine whether they qualify for derecognition. Under these programs, we are entitled to the payment over time of the excess of the sum of interest and fees collected from customers, in connection with the mortgages that were sold, over the yield paid to investors, less credit losses and other costs. We also act as counterparty in interest rate swap agreements where we pay the interest due to Canadian Mortgage Bond holders and receive the interest on the underlying mortgages, which are converted into MBS through the NHA-MBS program and sold to the Canada Housing Trust. Since we continue to be exposed to substantially all the prepayment, interest rate and credit risk associated with the securitized mortgages, they do not qualify for derecognition. We continue to recognize the mortgages and the related cash proceeds as secured financing in our Consolidated Balance Sheet. The interest and fees collected, net of the yield paid to investors, are recorded in net interest income using the effective interest method over the term of the securitization. Credit losses associated with the mortgages are recorded in the provision for credit losses. During the year ended October 31, 2019, we sold $6,692 million of mortgages to these programs ($8,062 million in 2018). The following table presents the carrying amounts and fair values of transferred assets that did not qualify for derecognition and the associated liabilities: (Canadian $ in millions) 2019 2018 Carrying amount Fair value Carrying amount (1) Fair value Assets Residential mortgages 6,357 5,569 Other related assets (2) 10,872 11,640 Total 17,229 17,253 17,209 17,105 Associated liabilities (3) 16,993 17,202 16,925 16,763 (1) Carrying amount of loans is net of allowance. (2) Other related assets represent payments received on account of mortgages pledged under securitization programs that have not yet been applied against the associated liabilities. The payments received are held in permitted instruments on behalf of the investors in the securitization vehicles until principal payments are required to be made on the associated liabilities. In order to compare all assets supporting the associated liabilities, this amount is added to the carrying amount of the securitized assets in the table above. (3) Associated liabilities are recognized in Securitization and structured entities’ liabilities in our Consolidated Balance Sheet. Transferred Financial Assets that Qualified for Derecognition We retain the mortgage servicing rights for certain mortgage loans purchased or originated in the U.S. which are sold and derecognized. During the year ended October 31, 2019, we sold and derecognized $460 million ($936 million in 2018) and recognized a $15 million gain ($21 million in 2018) in non-interest revenue. We retain mortgage servicing rights for these loans, which represent our continuing involvement. As at October 31, 2019, the carrying value of the mortgage servicing right was $43 million ($52 million as at October 31, 2018). Securities Lent or Sold Under Repurchase Agreements Securities lent or sold under repurchase agreements represent short-term funding transactions in which we sell securities that we own and simultaneously commit to repurchase the same securities at a specified price on a specified date in the future. We retain substantially all the risks and rewards associated with the securities and we continue to recognize them in our Consolidated Balance Sheet, with the obligation to repurchase these securities recorded as secured borrowing transactions at the amount owing. The carrying value of these securities approximates the carrying value of the associated liabilities, which total $86,656 million as at October 31, 2019 ($66,684 million as at October 31, 2018), due to the short-term nature. The interest expense related to these liabilities is recorded on an accrual basis in interest expense, other liabilities, in our Consolidated Statement of Income. |
Structured Entities
Structured Entities | 12 Months Ended |
Oct. 31, 2019 | |
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Structured Entities | Note 7: Structured Entities We enter into certain transactions in the ordinary course of business which involve the establishment of SEs to facilitate or secure customer transactions and to obtain alternate sources of funding. We are required to consolidate an SE if we control the entity. We control an SE when we have power over the SE, exposure to variable returns as a result of our involvement, and the ability to exercise power to affect the amount of our returns. In assessing whether we control an SE, we consider the entire arrangement to determine the purpose and design of the SE, the nature of any rights held through contractual arrangements, and whether we are acting as principal or agent. We perform a reassessment of consolidation if facts and circumstances indicate that there have been changes to one or more of the elements of control over the SE. Information regarding our basis of consolidation is included in Note 1. Consolidated Structured Entities Bank Securitization Vehicles We use securitization vehicles to securitize our Canadian credit card loans, Canadian real estate lines of credit, Canadian auto loans and equipment loans in order to obtain alternate sources of funding. The structure of these vehicles limits the activities they can undertake and the types of assets they can hold, and the vehicles have limited decision-making authority. The vehicles issue term asset-backed securities to fund their activities. We control and consolidate these vehicles, as we have the key decision-making powers necessary to obtain the majority of the benefits of their activities. The following table presents the carrying amounts and fair values of transferred assets that did not qualify for derecognition and the associated liabilities issued by our bank securitization vehicles: (Canadian $ in millions) 2019 2018 Carrying amount Fair value Carrying amount (1) Fair value Assets Credit cards 7,747 7,747 7,246 7,246 Consumer instalment and other personal (2) 5,872 5,876 6,827 6,799 Business and government 716 721 – – Total 14,335 14,344 14,073 14,045 Associated liabilities (3) 10,166 10,209 8,179 8,134 (1) Carrying amount of loans is net of allowance. (2) Includes Canadian real estate lines of credit and Canadian auto loans. (3) Associated liabilities are recognized in Securitization and structured entities’ liabilities in our Consolidated Balance Sheet. U.S. Customer Securitization Vehicle We sponsor one customer securitization vehicle (also referred to as a bank-sponsored multi-seller conduit) that provides our customers with alternate sources of funding through the securitization of their assets. This vehicle provides clients with access to financing in the asset-backed commercial paper (“ABCP”) markets by allowing them to either sell their assets directly into the vehicle or indirectly by selling an interest in the securitized assets into the vehicle, which then issues ABCP to investors in order to fund the purchases. We do not sell assets to the customer securitization vehicle. We earn fees for providing services related to the securitizations, including liquidity, distribution and financial arrangement fees for supporting the ongoing operations of the vehicle. We have determined that we control and therefore consolidate this vehicle, as we are exposed to its variable returns and we have the key decision-making powers necessary to affect the amount of those returns in our capacity as liquidity provider and servicing agent. We provide committed liquidity support facilities to this vehicle, which may require that we provide additional financing to the vehicle in the event that certain events occur. The total committed undrawn amount under these facilities at October 31, 2019 was $6,733 million ($7,100 million at October 31, 2018). Capital and Funding Vehicles We have a funding vehicle, created under the covered bond program, that was created to guarantee payments due to bondholders on bonds issued by us. We sell assets to this funding vehicle in exchange for an intercompany loan. We may also use capital vehicles to transfer our credit exposure on certain loan assets. We purchase credit protection against eligible credit events from these vehicles. The vehicles collateralize their obligation through the issuance of guarantee-linked notes. Loan assets are not sold or assigned to the vehicles and remain on our Consolidated Balance Sheet. As at October 31, 2019, $325 million of guarantee-linked notes issued by these vehicles were included in deposits in our Consolidated Balance Sheet ($325 million as For those vehicles that purchase assets from us or are designed to pass on our credit risk, we have determined that, based on the rights of the arrangements or through our equity interest, we have significant exposure to the variable returns of the vehicles, and we control and therefore consolidate these vehicles. Additional information related to notes issued by, and assets sold to, these vehicles is provided in Note 13 and Note 24, respectively. Unconsolidated Structured Entities The table below presents amounts related to our interests in unconsolidated SEs: (Canadian $ in millions) 2019 2018 Capital vehicles Canadian customer Capital vehicles Canadian customer Interests recorded on the balance sheet Cash and cash equivalents 547 66 118 53 Trading securities – 8 – 12 FVTPL securities – 567 – 582 FVOCI securities – 616 2 242 Trading loans – – 7 – Other 15 – 3 13 562 1,257 130 902 Deposits 547 66 570 53 Other 9 – 17 – 556 66 587 53 Exposure to loss (2) – 7,453 28 7,135 Total assets of the entities 556 4,854 587 5,033 (1) Securities held that are issued by our Canadian customer securitization vehicles are comprised of asset-backed commercial paper and are classified as trading securities, FVTPL securities and FVOCI securities. All assets held by these vehicles relate to assets in Canada. (2) Exposure to loss represents securities held, undrawn liquidity facilities, total committed amounts of the BMO funded vehicle, derivative assets and loans. Capital Vehicles We also use capital vehicles to pass our credit risk to security holders of the vehicles. In these situations, we are not exposed to significant default or credit risk. Our remaining exposure to variable returns is less than that of the note holders in these vehicles, who are exposed to our default and credit risk. We are not required to consolidate these vehicles. In 2019, one of our capital vehicles redeemed a note issued by us. Additional information is provided in Note 16. Canadian Customer Securitization Vehicles We sponsor customer securitization vehicles (also referred to as bank-sponsored multi-seller conduits) that provide our customers with alternate sources of funding through the securitization of their assets. These vehicles provide clients with access to financing either from BMO or in the ABCP markets by allowing them to either sell their assets directly into the vehicle or indirectly by selling an interest in the securitized assets into the vehicle, which then issues ABCP to either investors or BMO to fund the purchases. We do not sell assets to the customer securitization vehicles. We earn fees for providing services related to the securitizations, including liquidity, distribution and financial arrangement fees for supporting the ongoing operations of the vehicles. We have determined that we do not control these entities, as their key relevant activity, the servicing of program assets, does not reside with us. We provide liquidity facilities to the market-funded vehicles, which may require that we provide additional financing to the vehicles in the event that certain events occur. The total committed and undrawn amount under these liquidity facilities and any undrawn amounts of the BMO funded vehicle at October 31, 2019 was $6,262 million ($6,286 million at October 31, 2018). BMO Managed Funds We have established a number of funds that we also manage. We assess whether or not we control these funds based on the economic interest we have in the funds, including investments in the funds and management fees earned from the funds, and any investors’ rights to remove us as investment manager. Based on our assessment, we have determined that we do not control these funds. Our total interest in unconsolidated BMO managed funds was $1,728 million at October 31, 2019 ($1,612 million in 2018), which is included in securities in our Consolidated Balance Sheet. Other Structured Entities We purchase and hold investments in a variety of third-party structured entities, including exchange-traded funds, mutual funds, limited partnerships and investment trusts which are recorded in securities in our Consolidated Balance Sheet. We are considered to have an interest in these investments through our holdings and because we may act as a counterparty in certain derivatives contracts. We are not the investment manager or the sponsor of any of these investments. We are generally a passive investor and do not have power over the key decision-making activities of these investments. Our maximum exposure to loss from our investments is limited to the carrying amounts of our investments and any unutilized commitment we have provided. Sponsored Structured Entities We may be deemed to be the sponsor of an SE if we are involved in the design, legal set-up Additional information on our compensation trusts is provided in Note 20. |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Oct. 31, 2019 | |
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Derivative Instruments | Note 8: Derivative Instruments Derivative instruments are financial contracts that derive their value from underlying changes in interest rates, foreign exchange rates or other financial or commodity prices or indices. Derivative instruments are either regulated exchange-traded contracts or negotiated over-the-counter Types of Derivatives Swaps Swaps are contractual agreements between two parties to exchange a series of cash flows. The various swap agreements that we enter into are as follows: Interest rate swaps – counterparties generally exchange fixed and floating rate interest payments based on a notional value in a single currency. Cross-currency swaps – fixed rate interest payments and principal amounts are exchanged in different currencies. Cross-currency interest rate swaps – fixed and/or floating rate interest payments and principal amounts are exchanged in different currencies. Commodity swaps – counterparties generally exchange fixed and floating rate payments based on a notional value of a single commodity. Equity swaps – counterparties exchange the return on an equity security or a group of equity securities for the return based on a fixed or floating interest rate or the return on another equity security or group of equity securities. Credit default swaps – one counterparty pays the other a fee in exchange for that other counterparty agreeing to make a payment if a credit event occurs, such as bankruptcy or failure to pay. Total return swaps – one counterparty agrees to pay or receive from the other cash amounts based on changes in the value of a reference asset or group of assets, including any returns such as interest earned on these assets, in exchange for amounts that are based on prevailing market funding rates. Forwards and Futures Forwards and futures are contractual agreements to either buy or sell a specified amount of a currency, commodity, interest-rate-sensitive financial instrument or security at a specified price and date in the future. Forwards are customized contracts transacted in the over-the-counter Options Options are contractual agreements that convey to the purchaser the right but not the obligation to either buy or sell a specified amount of a currency, commodity, interest-rate-sensitive financial instrument or security at a fixed future date or at any time within a fixed future period. For options written by us, we receive a premium from the purchaser for accepting market risk. For options purchased by us, we pay a premium for the right to exercise the option. Since we have no obligation to exercise the option, our primary exposure to risk is the potential credit risk if the writer of an over-the-counter Caps, collars and floors are specialized types of written and purchased options. They are contractual agreements in which the writer agrees to pay the purchaser, based on a specified notional amount, the difference between the market rate and the prescribed rate of the cap, collar or floor. The writer receives a premium for selling this instrument. A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap. A future option is an option contract in which the underlying instrument is a single futures contract. The main risks associated with these derivative instruments are related to exposure to movements in interest rates, foreign exchange rates, credit quality, value of the underlying financial instrument or commodity, as applicable, and the possible inability of counterparties to meet the terms of the contracts. Embedded Derivatives From time to time, we purchase or issue financial instruments containing embedded derivatives. The embedded derivative in a financial liability is separated from the host contract and carried at fair value if the economic characteristics of the derivative are not closely related to those of the host contract, the terms of the embedded derivative are the same as those of a stand-alone derivative, and the combined contract is not measured at fair value. To the extent that we cannot reliably identify and measure the embedded derivative, the entire contract is carried at fair value, with changes in fair value reflected in income. Embedded derivatives in certain of our equity linked notes are accounted for separately from the host instrument. Contingent Features Certain over-the-counter Risks Hedged Interest Rate Risk We manage interest rate risk through interest rate futures, interest rate swaps and options, which are linked to and adjust the interest rate sensitivity of a specific asset, liability, forecasted transaction or firm commitment, or a specific pool of transactions with similar risk characteristics. Foreign Currency Risk We manage foreign currency risk through currency futures, foreign currency options, cross-currency swaps, foreign exchange spot transactions, forward contracts and deposits denominated in foreign currencies. Equity Price Risk We manage equity price risk through total return swaps. Trading Derivatives Trading derivatives include derivatives entered into with customers to accommodate their risk management needs, market-making to facilitate customer-driven demand for derivatives, derivatives transacted on a limited basis to generate trading income from our principal trading positions, and certain derivatives that we enter into as part of our risk management strategy that do not qualify as hedges for accounting purposes (“economic hedges”). We structure and market derivative products to enable customers to transfer, modify or reduce current or expected exposure to risks. Principal trading activities include market-making and positioning activities. Market-making involves quoting bid and offer prices to other market participants with the intention of generating revenues based on spread and volume. Positioning activities involve managing market risk positions with the expectation of profiting from favourable movements in prices, rates or indices. Trading derivatives are recorded at fair value. Realized and unrealized gains and losses are generally recorded in non-interest revenue, trading revenues, in our Consolidated Statement of Income. Unrealized gains and loses on derivatives used to economically hedge certain exposures may be recorded in the Consolidated Statement of Income in the same line as the unrealized gains and losses arising from the exposures. Unrealized gains on trading derivatives are recorded as derivative instrument assets and unrealized losses are recorded as derivative instrument liabilities in our Consolidated Balance Sheet. We may also economically hedge a portion of our U.S. dollar earnings through forward foreign exchange contracts and/or options to minimize fluctuations in our consolidated net income due to the translation of our U.S. dollar earnings. These contracts are recorded at fair value, with changes in fair value recorded in non-interest Fair Value of Trading and Hedging Derivatives Fair value represents point-in-time Fair values of our derivative instruments are as follows: (Canadian $ in millions) 2019 2018 Gross assets Gross Net Gross assets Gross Net Trading Interest Rate Contracts Swaps 7,588 (5,834 ) 1,754 7,013 (5,637 ) 1,376 Forward rate agreements 44 (157 ) (113 ) 36 (10 ) 26 Futures 1 (4 ) (3 ) 2 (3 ) (1 ) Purchased options 632 – 632 425 – 425 Written options – (403 ) (403 ) – (273 ) (273 ) Foreign Exchange Contracts Cross-currency swaps 2,394 (1,383 ) 1,011 2,362 (1,678 ) 684 Cross-currency interest rate swaps 3,471 (4,950 ) (1,479 ) 4,977 (6,057 ) (1,080 ) Forward foreign exchange contracts 2,796 (2,379 ) 417 4,335 (2,817 ) 1,518 Purchased options 188 – 188 241 – 241 Written options – (203 ) (203 ) – (228 ) (228 ) Commodity Contracts Swaps 754 (1,273 ) (519 ) 1,559 (1,084 ) 475 Futures 122 (40 ) 82 17 – 17 Purchased options 270 – 270 484 – 484 Written options – (367 ) (367 ) – (372 ) (372 ) Equity Contracts 1,199 (2,999 ) (1,800 ) 2,158 (2,402 ) (244 ) Credit Contracts Purchased 2 (98 ) (96 ) 1 (36 ) (35 ) Written 47 (4 ) 43 9 (1 ) 8 Total fair value – trading derivatives 19,508 (20,094 ) (586 ) 23,619 (20,598 ) 3,021 Hedging Interest Rate Contracts Cash flow hedges – swaps 1,393 (121 ) 1,272 18 (1,261 ) (1,243 ) Fair value hedges – swaps 799 (1,435 ) (636 ) 701 (668 ) 33 Total swaps 2,192 (1,556 ) 636 719 (1,929 ) (1,210 ) Foreign Exchange Contracts Cash flow hedges 420 (1,948 ) (1,528 ) 1,084 (1,074 ) 10 Total foreign exchange contracts 420 (1,948 ) (1,528 ) 1,084 (1,074 ) 10 Equity Contracts Cash flow hedges 24 – 24 – (28 ) (28 ) Total equity contracts 24 – 24 – (28 ) (28 ) Total fair value – hedging derivatives (1) 2,636 (3,504 ) (868 ) 1,803 (3,031 ) (1,228 ) Total fair value – trading and hedging derivatives 22,144 (23,598 ) (1,454 ) 25,422 (23,629 ) 1,793 Less: impact of master netting agreements (13,538 ) 13,538 – (15,575 ) 15,575 – Total 8,606 (10,060 ) (1,454 ) 9,847 (8,054 ) 1,793 (1) The fair values of hedging derivatives wholly or partially offset the changes in fair values of the related on-balance Certain comparative figures have been reclassified to conform with the current year’s presentation. Assets are shown net of liabilities to customers where we have a legally enforceable right to offset amounts and we intend to settle contracts on a net basis. Notional Amounts of Trading Derivatives The notional amounts of our derivatives represent the amount to which a rate or price is applied in order to calculate the amount of cash that must be exchanged under the contract. Notional amounts do not represent assets or liabilities and therefore are not recorded in our Consolidated Balance Sheet. (Canadian $ in millions) 2019 2018 Exchange traded Over-the-counter Total Exchange traded Over-the-counter Total Interest Rate Contracts Swaps – 4,209,193 4,209,193 – 3,684,763 3,684,763 Forward rate agreements – 491,437 491,437 – 411,573 411,573 Purchased options 13,737 42,084 55,821 26,629 35,023 61,652 Written options 16,446 49,487 65,933 16,511 48,721 65,232 Futures 225,747 – 225,747 192,482 – 192,482 Total interest rate contracts 255,930 4,792,201 5,048,131 235,622 4,180,080 4,415,702 Foreign Exchange Contracts Cross-currency swaps – 47,977 47,977 – 57,226 57,226 Cross-currency interest rate swaps – 499,571 499,571 – 449,187 449,187 Forward foreign exchange contracts – 453,711 453,711 – 463,743 463,743 Purchased options 3,295 37,397 40,692 2,625 21,468 24,093 Written options 2,502 42,075 44,577 1,420 24,018 25,438 Futures 882 – 882 739 – 739 Total foreign exchange contracts 6,679 1,080,731 1,087,410 4,784 1,015,642 1,020,426 Commodity Contracts Swaps – 24,722 24,722 – 24,366 24,366 Purchased options 3,615 6,608 10,223 3,303 6,182 9,485 Written options 5,230 4,371 9,601 4,909 4,233 9,142 Futures 32,422 – 32,422 33,104 – 33,104 Total commodity contracts 41,267 35,701 76,968 41,316 34,781 76,097 Equity Contracts 39,952 50,910 90,862 33,687 52,725 86,412 Credit Contracts Purchased – 5,361 5,361 – 3,047 3,047 Written – 2,068 2,068 – 443 443 Total 343,828 5,966,972 6,310,800 315,409 5,286,718 5,602,127 Derivatives Used in Hedge Accounting In accordance with our risk management strategy, we enter into various derivative contracts to hedge our interest rate, foreign currency and equity price exposures. In addition, we use deposits to hedge foreign currency exposure in our net investment in foreign operations. To the extent these instruments qualify for hedge accounting, we designate them in accounting hedge relationships. Our structural market risk strategies, including our approach to managing interest rate and foreign exchange risk, are included in the blue-tinted font in the Structural (Non-Trading) By using derivatives to hedge exposures to interest rates, foreign currency exchange rates, and equity prices, we are also exposed to the credit risk of the derivative counterparty. We mitigate credit risk by entering into transactions with high-quality counterparties, requiring the counterparties to post collateral, entering into master netting agreements, or settling through centrally cleared counterparties. In order to qualify as an accounting hedge, the hedging relationship must be designated and formally documented at its inception, detailing the particular risk management objective and strategy for the hedge and the specific asset, liability or cash flow being hedged, as well as how effectiveness is to be assessed. Changes in the fair value of the derivative must be highly effective in offsetting changes in the fair value or changes in the amount of future cash flows of the hedged item. We evaluate hedge effectiveness at the inception of the hedging relationship and on an ongoing basis, retrospectively and prospectively, primarily using a quantitative statistical regression analysis. We consider a hedging relationship highly effective when all of the following criteria are met: correlation between the variables in the regression is at least 0.8; the slope of the regression is within a 0.8 to 1.25 range; and the confidence level of the slope is at least 95%. The practice is different for our net investment hedge, discussed in the Net Investment Hedges section below. Any ineffectiveness in the hedging relationship is recognized as it arises in non-interest The following table outlines the notional amounts and average rates of derivatives and the carrying amounts of deposits designated as hedging instruments, by term to maturity, hedge type, and risk type, where applicable. Remaining term to maturity 2019 2018 (Canadian $ in millions, except as noted) Within 1 year 1 to 3 years 3 to 5 years 5 to 10 years Over 10 years Total Total Cash Flow Hedges Interest rate risk – Interest rate swaps Notional amount 18,151 27,369 32,852 15,239 – 93,611 73,769 Average fixed interest rate 1.78 % 2.06 % 2.19 % 1.83 % – 2.01 % 2.21 % Foreign exchange risk – Cross-currency swaps and foreign exchange forwards (1) CAD-USD Notional amount 5,666 13,671 15,039 5,527 251 40,154 29,119 Average fixed interest rate 1.01 % 1.86 % 2.48 % 1.59 % 3.02 % 1.95 % 1.57 % Average exchange rate: CAD-USD 1.2938 1.3127 1.3121 1.2659 1.3122 1.3034 1.2930 CAD-EUR Notional amount 4,993 8,464 6,699 – 201 20,357 21,349 Average fixed interest rate 1.98 % 2.42 % 2.11 % – 2.97 % 2.21 % 2.11 % Average exchange rate: CAD-EUR 1.4719 1.4994 1.4894 – 1.4870 1.4892 1.4908 Other currency pairs (2) Notional amount 1,453 2,272 3,202 922 – 7,849 6,353 Average fixed interest rate 1.86 % 2.56 % 2.92 % 2.54 % – 2.57 % 2.59 % Average exchange rate: CAD-Non 1.6026 1.3199 1.1895 1.4539 – 1.3348 1.3430 Equity price risk – Total return swap Notional amount 316 – – – – 316 381 Fair Value Hedges Interest rate risk – Interest rate swaps Notional amount 13,300 32,633 30,708 16,809 17 93,467 73,464 Average fixed interest rate 2.26 % 2.18 % 2.22 % 2.30 % 2.36 % 2.23 % 2.17 % Net Investment Hedges Foreign exchange risk USD denominated deposit – carrying amount 6,495 – – – – 6,495 6,596 GBP denominated deposit – carrying amount 685 – – – – 685 473 (1) Under certain hedge strategies using cross-currency swaps, a CAD leg is inserted to create two swaps designated as separate hedges (for example, a EURO-USD EURO-CAD CAD-USD CAD-foreign (2) Includes CAD-AUD, CAD-CHF, CAD-CNH, CAD-GBP CAD-HKD Cash Flow Hedges Cash flow hedges modify exposure to variability in cash flows for variable interest rate bearing instruments, foreign currency denominated assets and liabilities and certain cash-settled share-based payment grants subject to equity price risk. We use interest rate swaps with or without embedded options, cross-currency swaps, and total return swaps to hedge this variability. We hedge the full amount of foreign exchange risk, but interest rate risk is hedged only to the extent of benchmark interest rates. The benchmark interest rate is a component of interest rate risk that is observable in the relevant financial markets, for example London Interbank Offered Rate (“LIBOR”) or Bankers’ Acceptances (“BA”) rate. We determine the amount of the exposure to which hedge accounting is applied by assessing the potential impact of changes in interest rates, foreign exchange rates, and equity prices on the future cash flows of floating rate loans and deposits, foreign currency denominated assets and liabilities and certain cash-settled share-based payments. This assessment is performed using analytical techniques, such as simulation, sensitivity analysis, stress testing and gap analysis. We record interest that we pay or receive on these cash flow hedge derivatives as an adjustment to net interest income in our Consolidated Statement of Income over the life of the hedge. To the extent that changes in the fair value of the derivative offsets changes in the fair value of the hedged item for the designated hedged risk, they are recorded in other comprehensive income. Hedge ineffectiveness, the portion of the change in fair value of the derivative that does not offset changes in the fair value of the hedged item, is recorded directly in non-interest For cash flow hedges that are discontinued before the end of the original hedge term, the cumulative unrealized gain or loss recorded in other comprehensive income is amortized to our Consolidated Statement of Income in net interest income for interest rate swaps and in employee compensation for total return swaps as the hedged item is recorded in earnings. The entire unrealized gain or loss is recognized immediately in net interest income in our Consolidated Statement of Income, if the hedged item is sold or settled. In general, we do not terminate our foreign exchange hedges before maturity. For cash flow hedges, we use a hypothetical derivative to measure the hedged risk of floating rate loans, deposits, foreign currency denominated assets and liabilities, or share-based payment grants. This hypothetical derivative matches the critical terms of the hedged items identically, and it perfectly offsets the hedged cash flow. In our cash flow hedge relationships, the main sources of ineffectiveness are differences in interest rate indices, tenor and reset/settlement frequencies between the hedging instrument and the hedged item. Net Investment Hedges Net investment hedges mitigate our exposure to foreign currency exchange rate fluctuations related to our net investment in foreign operations. Deposits denominated in foreign currencies are designated as a hedging instrument for a portion of the net investment in foreign operations. The foreign currency translation of our net investment in foreign operations and the effective portion of the corresponding hedging instrument are recorded in unrealized gains (losses) on translation of net foreign operations in other comprehensive income. The effectiveness of our net investment hedge is determined using the dollar offset method with spot foreign currency rates. As the notional amount of the deposits and the hedged net investment in foreign operations are the same, there is no source of ineffectiveness in these hedging relationships. For cash flow hedges and net investment hedges, the following tables contain information related to items designated as hedging instruments, hedged items and hedge ineffectiveness for the years ended October 31, 2019 and October 31, 2018. 2019 Carrying amount of Hedge ineffectiveness (Canadian $ in millions) Asset Liability Gains ( l Gains ( l Ineffectiveness non-interest Cash flow hedges Interest rate risk – Interest rate swaps 1,393 (121 ) 3,142 (3,118 ) 15 Foreign exchange risk – Cross-currency swaps and foreign exchange forwards 420 (1,948 ) (1,195 ) 1,195 – Equity price risk – Total return swaps 24 – 15 (15 ) – 1,837 (2,069 ) 1,962 (1,938 ) 15 Net investment hedges Foreign exchange risk – Deposit liabilities – (7,180 ) (17 ) 17 – Total 1,837 (9,249 ) 1,945 (1,921 ) 15 (1) Represents the unrealized gains (losses) within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Balance Sheet. 2018 Carrying amount of Hedge ineffectiveness (Canadian $ in millions) Asset Liability Gains ( l Gains ( l Ineffectiveness non-interest Cash flow hedges Interest rate risk – Interest rate swaps 18 (1,261 ) (1,685 ) 1,687 (4 ) Foreign exchange risk – Cross-currency swaps and foreign exchange forwards 1,084 (1,074 ) (459 ) 459 – Equity price risk – Total return swaps – (28 ) 24 (24 ) – 1,102 (2,363 ) (2,120 ) 2,122 (4 ) Net investment hedges Foreign exchange risk – Deposit liabilities – (7,069 ) (211 ) 211 – Total 1,102 (9,432 ) (2,331 ) 2,333 (4 ) (1) Represents the unrealized gains (losses) within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Balance Sheet. For cash flow hedges and net investment hedges, the following tables contain information related to impacts on the Consolidated Statement of Other Comprehensive Income, on a pre-tax 2019 Balance in cash flow hedge AOCI / (Canadian $ in millions) Balance October 31, 2018 Gains / Amount reclassified to Balance Active hedges Discontinued hedges Cash flow hedges Interest rate risk (2,211 ) 3,127 240 1,156 1,150 6 Foreign exchange risk 751 (1,177 ) (18 ) (444 ) (444 ) – Equity price risk 30 15 (28 ) 17 17 – (1,430 ) 1,965 194 729 723 6 Net investment hedges Foreign exchange risk (1,791 ) (17 ) – (1,808 ) (1,808 ) – Total (3,221 ) 1,948 194 (1,079 ) (1,085 ) 6 (1) Tax balance related to cash flow hedge AOCI is $(216) million. 2018 Balance in cash flow hedge AOCI / net foreign operations AOCI (Canadian $ in millions) Balance Gains / Amount reclassified to Balance Active hedges Discontinued hedges Cash flow hedges Interest rate risk (597 ) (1,681 ) 67 (2,211 ) (1,348 ) (863 ) Foreign exchange risk 298 (3 ) 456 751 751 – Equity price risk 72 24 (66 ) 30 30 – (227 ) (1,660 ) 457 (1,430 ) (567 ) (863 ) Net investment hedges Foreign exchange risk (1,580 ) (211 ) – (1,791 ) (1,791 ) – Total (1,807 ) (1,871 ) 457 (3,221 ) (2,358 ) (863 ) (1) Tax balance related to cash flow hedge AOCI is $356 million. Fair Value Hedges Fair value hedges modify exposure to changes in a fixed rate instrument’s fair value caused by changes in interest rates. These hedges economically convert fixed rate assets and liabilities to floating rate. We use interest rate swaps to hedge interest rate risk, including benchmark interest rates, inherent in fixed rate securities, a portfolio of mortgages, deposits and subordinated debt. Any fixed rate assets or liabilities that are part of a hedging relationship are adjusted for the change in value of the risk being hedged. To the extent that the change in the fair value of the derivative does not offset changes in the fair value of the hedged item for the risk being hedged, the net amount (hedge ineffectiveness) is recorded directly in non-interest For fair value hedges that are discontinued, we cease adjusting the hedged item. The cumulative fair value adjustment of the hedged item is then amortized to net interest income over the hedged item’s remaining term to maturity. If the hedged item is sold or settled, the cumulative fair value adjustment is included in the gain or loss on sale or settlement. In our fair value hedge relationships, the main sources of ineffectiveness are the counterparty effect and our own credit risk on the fair value of the swap, and the difference in terms such as fixed interest rate or reset/settlement frequency between the swap and the hedged item. The amounts relating to derivatives designated as fair value hedging instruments, hedged items and hedge ineffectiveness for the years ended October 31, 2019 and October 31, 2018 are as follows: (Canadian $ in millions) 2019 Carrying amount of Hedge ineffectiveness Accumulated amount of fair value Asset Liability Gains ( l Gains ( l Ineffectiveness non-interest Carrying amount Active hedges Discontinued hedges Fair value hedge Interest rate swaps 799 (1,435 ) Securities and loans – – (2,072 ) 2,058 (14 ) 53,672 1,249 8 Deposits and subordinated debt – – 1,269 (1,255 ) 14 (41,277 ) (609 ) 308 Total 799 (1,435 ) (803 ) 803 – 12,395 640 316 (1) Represents the unrealized gains (losses) within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Balance Sheet. (2) Represents the carrying value on the Consolidated Balance Sheet and includes amortized cost, before allowance for credit losses, plus fair value hedge adjustments, except for FVOCI securities that are carried at fair value. (Canadian $ in millions) 2018 Carrying amount of Hedge ineffectiveness Accumulated amount of fair value Asset Liability Gains ( l Gains ( l Ineffectiveness non-interest Carrying amount Active hedges Discontinued hedges Fair value hedge Interest rate swaps 701 (668 ) Securities and loans – – 850 (843 ) 7 36,722 (1,160 ) – Deposits and subordinated debt – – (764 ) 761 (3 ) (34,375 ) 719 436 Total 701 (668 ) 86 (82 ) 4 2,347 (441 ) 436 (1) Represents the unrealized gains (losses) within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Balance Sheet. (2) Represents the carrying value on the Consolidated Balance Sheet and includes amortized cost, before allowance for credit losses, plus fair value hedge adjustments, except for FVOCI securities that are carried at fair value. Comparative Information During 2017, net losses of $1,161 million related to the effective portion of cash flow hedges were recognized in OCI. A gain of $188 million related to cash flow hedges was transferred from equity to interest income or interest expense. Net ineffectiveness recognized on cash flow hedges during 2017 was a loss of $7 million. Included within non-interest Derivative-Related Market Risk Derivative instruments are subject to market risk. Market risk arises from the potential for a negative impact on the balance sheet and/or statement of income due to adverse changes in the value of derivative instruments as a result of changes in certain market variables. These variables include interest rates, foreign exchange rates, equity and commodity prices and their implied volatilities, as well as credit spreads, credit migration and default. We strive to limit market risk by employing comprehensive governance and management processes for all market risk-taking activities. Derivative-Related Credit Risk Derivative instruments are subject to credit risk arising from the possibility that counterparties may default on their obligations. The credit risk associated with a derivative is normally a small fraction of the notional amount of the derivative instrument. Derivative contracts generally expose us to potential credit loss if changes in market rates affect the counterparty’s position unfavourably and the counterparty defaults on payment. The credit risk is represented by the positive fair value of the derivative instrument. We strive to limit credit risk by dealing with counterparties that we believe are creditworthy, and we manage our credit risk for derivatives using the same credit risk process that is applied to loans and other credit assets. We also pursue opportunities to reduce our exposure to credit losses on derivative instruments, including through collateral and by entering into master netting agreements with counterparties. The credit risk associated with favourable contracts is mitigated by legally enforceable master netting agreements to the extent that unfavourable contracts with the same counterparty must be settled concurrently with favourable contracts. Exchange-traded derivatives have limited potential for credit exposure, as they are settled net daily with each exchange. Terms used in the credit risk tables below are as follows: Replacement cost Credit risk equivalent Risk-weighted assets (Canadian $ in millions) 2019 Replacement Credit risk Risk-weighted Interest Rate Contracts Over-the-counter Swaps 3,233 8,114 2,300 Forward rate agreements 102 1,162 236 Purchased options 11 62 39 Written options 38 154 98 3,384 9,492 2,673 Exchange traded Futures 90 161 3 Purchased options 28 40 1 Written options 3 6 – 121 207 4 Total interest rate contracts 3,505 9,699 2,677 Foreign Exchange Contracts Over-the-counter Swaps 1,184 6,248 989 Forward foreign exchange contracts 1,753 7,225 1,260 Purchased options 40 167 46 Written options 10 119 29 2,987 13,759 2,324 Exchange traded Futures 13 20 – Purchased options 13 24 – Written options – 2 – 26 46 – Total foreign exchange contracts 3,013 13,805 2,324 Commodity Contracts Over-the-counter Swaps 213 2,154 629 Purchased options 98 472 125 Written options 116 370 204 427 2,996 958 Exchange traded Futures 393 1,079 22 Purchased options 378 567 11 Written options 1 52 1 772 1,698 34 Total commodity contracts 1,199 4,694 992 Equity Contracts Over-the-counter 197 4,572 1,246 Exchange traded 1,083 2,580 52 Total equity contracts 1,280 7,152 1,298 Credit Contracts 277 496 34 Total 9,274 35,846 7,325 (1) In 2019, Replacement Cost and Credit Risk Equivalent are presented after the impact of master netting agreements and calculated using the Standardized Approach Counterparty Risk (“SA-CCR“) (Canadian $ in millions) 2018 Replacement Credit risk Risk-weighted Interest Rate Contracts Over-the-counter Swaps 7,732 9,917 – Forward rate agreements 36 34 – Purchased options 409 393 – 8,177 10,344 704 Exchange traded Futures 2 29 – Purchased options 16 250 – Written options – – – 18 279 Total interest rate contracts 8,195 10,623 704 Foreign Exchange Contracts Over-the-counter Swaps 8,305 22,741 – Forward foreign exchange contracts 4,453 8,373 – Purchased options 225 424 – 12,983 31,538 2,544 Exchange traded Futures – 8 – Purchased options 16 36 – Written options – – – 16 44 Total foreign exchange contracts 12,999 31,582 2,544 Commodity Contracts Over-the-counter Swaps 1,559 4,450 – Purchased options 335 1,108 – 1,894 5,558 1,188 Exchange traded Futures 17 770 – Purchased options 149 305 – Written options – – – 166 1,075 Total commodity contracts 2,060 6,633 1,188 Equity Contracts Over-the-counter 1,585 4,332 Exchange traded 573 1,646 Total equity contracts 2,158 5,978 431 Credit Contracts 10 55 83 Total derivatives 25,422 54,871 4,950 Less: impact of master netting agreements (15,575 ) (29,589 ) – Total (2) 9,847 25,282 4,950 (1) In 2019, Replacement Cost and Credit Risk Equivalent are presented after the impact of master netting agreements and calculated using the SA-CCR (2) The total derivatives and the impact of master netting agreements for replacement cost and credit risk equivalent do not include over-the-counter cleared derivatives with a fair value of $846 million as at October 31, 2018. Certain comparative figures have been reclassified to conform with the current year’s presentation. Term to Maturity Our derivative contracts have varying maturity dates. The remaining contractual terms to maturity for the notional amounts of our derivative contracts are set out below: (Canadian $ in millions) Term to maturity 2019 2018 Within 1 1 to 3 years 3 to 5 5 to 10 Over 10 Total notional Total notional Interest Rate Contracts Swaps 1,652,793 1,321,286 771,362 510,596 140,235 4,396,272 3,831,997 Forward rate agreements, futures and options 723,117 89,440 15,942 9,446 993 838,938 730,939 Total interest rate contracts 2,375,910 1,410,726 787,304 520,042 141,228 5,235,210 4,562,936 Foreign Exchange Contracts Swaps 169,935 187,893 126,074 97,154 23,672 604,728 548,148 Forward foreign exchange contracts 442,750 9,590 1,226 119 26 453,711 472,323 Futures 862 18 2 – – 882 739 Options 79,719 4,445 636 469 – 85,269 49,531 Total foreign exchange contracts 693,266 201,946 127,938 97,742 23,698 1,144,590 1,070,741 Commodity Contracts Swaps 6,374 15,899 2,132 317 – 24,722 24,366 Futures 12,120 16,782 3,096 424 – 32,422 33,104 Options 8,646 10,497 613 68 – 19,824 18,627 Total commodity contracts 27,140 43,178 5,841 809 – 76,968 76,097 Equity Contracts 69,854 13,875 5,494 1,636 319 91,178 86,794 Credit Contracts 204 444 4,152 2,451 178 7,429 3,490 Total notional amount 3,166,374 1,670,169 930,729 622,680 165,423 6,555,375 5,800,058 Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Oct. 31, 2019 | |
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Premises and Equipment | Note 9: Premises and Equipment We record all premises and equipment at cost less accumulated depreciation, and less any accumulated impairment, except land, which is recorded at cost. Buildings, computer equipment and operating system software, other equipment and leasehold improvements are depreciated on a straight-line basis over their estimated useful lives. When the major components of a building have different useful lives, they are accounted for separately and depreciated over each component’s estimated useful life. The maximum estimated useful lives we use to depreciate our assets are as follows: Buildings 10 to 40 years Computer equipment and operating system software 5 to 7 years Other equipment 10 years Leasehold improvements Lease term to a maximum of 10 years Depreciation methods, useful lives and the residual values of premises and equipment are reviewed annually for any change in circumstances and are adjusted if appropriate. At each reporting period, we review whether there are any indications that premises and equipment need to be tested for impairment. If there is an indication that an asset may be impaired, we test for impairment by comparing the asset’s carrying value to its recoverable amount. The recoverable amount is calculated as the higher of the value in use and the fair value less costs to sell. Value in use is the present value of the future cash flows expected to be derived from the asset. An impairment charge is recorded when the recoverable amount is less than the carrying value. There were no significant write-downs of premises and equipment due to impairment during the years ended October 31, 2019, 2018 and 2017. Gains and losses on disposal are included in non-interest Net rent expense for premises and equipment reported in non-interest (Canadian $ in millions) 2019 2018 Land Buildings Computer Other Leasehold Total Land Buildings Computer Other Leasehold Total Cost Balance at beginning of year 145 1,627 2,229 933 1,514 6,448 174 1,726 1,994 913 1,429 6,236 Additions 10 86 343 57 124 620 4 66 236 40 87 433 Disposals (1) (45 ) (179 ) (102 ) (15 ) (24 ) (365 ) (32 ) (163 ) (11 ) (27 ) (20 ) (253 ) Foreign exchange and other (1 ) – – (2 ) 1 (2 ) (1 ) (2 ) 10 7 18 32 Balance at end of year 109 1,534 2,470 973 1,615 6,701 145 1,627 2,229 933 1,514 6,448 Accumulated Depreciation and Impairment Balance at beginning of year – 1,016 1,662 704 1,080 4,462 – 1,063 1,465 674 1,001 4,203 Disposals (1) – (114 ) (101 ) (12 ) (20 ) (247 ) – (116 ) (9 ) (24 ) (15 ) (164 ) Depreciation – 59 227 51 98 435 – 60 201 48 91 400 Foreign exchange and other – – (2 ) (1 ) (1 ) (4 ) – 9 5 6 3 23 Balance at end of year – 961 1,786 742 1,157 4,646 – 1,016 1,662 704 1,080 4,462 Net carrying value 109 573 684 231 458 2,055 145 611 567 229 434 1,986 (1) Includes fully depreciated assets written off. |
Acquisitions
Acquisitions | 12 Months Ended |
Oct. 31, 2019 | |
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Acquisitions | Note 10: Acquisitions The cost of an acquisition is measured at the fair value of the consideration transferred, including contingent consideration. Acquisition-related costs are recognized as an expense in the period in which they are incurred. The identifiable assets acquired and liabilities assumed and contingent consideration are measured at their fair values at the date of acquisition. Goodwill is measured as the excess of the aggregate of the consideration transferred over the net of the fair value of identifiable assets acquired and liabilities assumed. The results of operations of acquired businesses are included in our consolidated financial statements beginning on the date of acquisition. KGS-Alpha On September 1, 2018, we completed the acquisition of the business of KGS, a U.S. fixed income broker-dealer specializing in U.S. mortgage and asset-backed securities in the institutional investor market, for cash consideration of US$304 million (CAD$397 million). The acquisition was accounted for as a business combination, and the acquired business and corresponding goodwill are included in our Capital Markets reporting segment. During the year ended October 31, 2019, the purchase price decreased to US$303 million (CAD$396 million) due to a post-closing adjustment based upon working capital. We also finalized our purchase price allocation and refined the valuation of intangible assets acquired, resulting in an intangible asset value of $102 million on acquisition and a goodwill balance of $6 million. The intangible assets are being amortized over three to fourteen years on an accelerated basis. Goodwill of $4 million related to this acquisition is deductible for tax purposes. The fair values of the assets acquired and liabilities assumed at the date of acquisition are as follows: (Canadian $ in millions) KGS Securities – trading 5,193 Securities borrowed or purchased under resale agreements 5,669 Goodwill and intangible assets 108 Other assets 583 Total assets 11,553 Securities lent or sold under repurchase agreements 9,563 Securities sold but not yet purchased 1,431 Other liabilities 163 Purchase price 396 The purchase price allocation for KGS has been completed. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Oct. 31, 2019 | |
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Goodwill and Intangible Assets | Note 11: Goodwill and Intangible Assets Goodwill When we complete an acquisition, we allocate the purchase price paid to the assets acquired, including identifiable intangible assets, and the liabilities assumed. Any portion of the consideration transferred that is in excess of the fair value of those net assets is considered to be goodwill. Goodwill is not amortized and is instead tested for impairment annually. In performing the impairment test, we utilize the fair value less costs to sell for each group of CGUs based on discounted cash flow projections. Cash flows were projected for the first 10 years based on actual operating results, expected future business performance and past experience. Beyond 10 years, cash flows were assumed to grow at perpetual annual rates of up to 2.5% (3.0% in 2018). The discount rates we applied in determining the recoverable amounts in 2019 ranged from 8.0% to 11.0% (8.6% to 11.4% in 2018), and were based on our estimate of the cost of capital for each CGU. The cost of capital for each CGU was estimated using the Capital Asset Pricing Model, based on the historical betas of publicly traded peer companies that are comparable to the CGU. There were no write-downs of goodwill due to impairment during the years ended October 31, 2019, 2018 and 2017. The key assumptions described above may change as market and economic conditions change. However, we estimate that reasonably possible changes in these assumptions are not expected to cause the recoverable amounts of our CGUs to decline below their carrying amounts. A continuity of our goodwill by group of CGUs for the years ended October 31, 2019 and 2018 is as follows: (Canadian $ in millions) Personal and Commercial Banking Wealth Management BMO Total Canadian U.S. Total Traditional Insurance Total Balance – October 31, 2017 97 3,719 3,816 2,137 2 2,139 289 6,244 Acquisitions (disposals) during the year – – – – – – 54 54 Foreign exchange and other (1) – 78 78 (8 ) – (8 ) 5 75 Balance – October 31, 2018 97 3,797 3,894 2,129 2 2,131 348 6,373 Acquisitions (disposals) during the year – – – – – – – – Foreign exchange and other (1) – (1 ) (1 ) 16 – 16 (48 ) (33 ) Balance – October 31, 2019 97 (2) 3,796 (3) 3,893 2,145 (4) 2 (5) 2,147 300 (6) 6,340 (1) Other changes in goodwill included the effects of translating goodwill denominated in foreign currencies into Canadian dollars and purchase accounting adjustments related to prior-year purchases. (2) Relates primarily to bcpbank Canada, Diners Club, Aver Media LP and GE Transportation Finance. (3) Relates primarily to First National Bank & Trust, Ozaukee Bank, Merchants and Manufacturers Bancorporation, Inc., Diners Club, AMCORE, M&I and GE Transportation Finance. (4) Relates to BMO Nesbitt Burns Inc., Guardian Group of Funds Ltd., Pyrford International Limited, LGM Investments Limited, M&I, myCFO, Inc., Stoker Ostler Wealth Advisors, Inc., CTC Consulting LLC, AWMB and F&C Asset Management plc. (5) Relates to AIG. (6) Relates to Gerard Klauer Mattison, BMO Nesbitt Burns Inc., Paloma Securities L.L.C., M&I, Greene Holcomb Fisher and KGS. Intangible Assets Intangible assets related to our acquisitions are initially recorded at their fair value at the acquisition date and subsequently at cost less accumulated amortization. Software is recorded at cost less accumulated amortization. Amortization expense is recorded in amortization of intangible assets in our Consolidated Statement of Income. The following table presents the changes in the balance of these intangible assets: (Canadian $ in millions) Customer Core Branch distribution Software – Software under Other Total Cost as at October 31, 2017 654 931 187 3,696 398 376 6,242 Additions (disposals) 35 – – 422 94 12 563 Foreign exchange and other (1 ) 20 4 9 4 (4 ) 32 Cost as at October 31, 2018 688 951 191 4,127 496 384 6,837 Additions (disposals) – – – 718 (91 ) 30 657 Foreign exchange and other 72 – – (9 ) (3 ) 33 93 Cost as at October 31, 2019 760 951 191 4,836 402 447 7,587 (1) Includes $679 million of internally generated software ($416 as at October 31, 2018). The following table presents the accumulated amortization of our intangible assets: (Canadian $ in millions) Customer Core Branch distribution Software – amortizing Software under Other Total Accumulated amortization at October 31, 2017 431 762 187 2,618 – 85 4,083 Amortization 46 51 – 387 – 19 503 Disposals – – – (20 ) – – (20 ) Foreign exchange and other (2 ) 17 4 (15 ) – (5 ) (1 ) Accumulated amortization at October 31, 2018 475 830 191 2,970 – 99 4,565 Amortization 60 48 – 395 – 51 554 Disposals – – – (11 ) – – (11 ) Foreign exchange and other 16 – – 7 – 32 55 Accumulated amortization at October 31, 2019 551 878 191 3,361 – 182 5,163 Carrying value at October 31, 2019 209 73 – 1,475 402 265 2,424 Carrying value at October 31, 2018 213 121 – 1,157 496 285 2,272 Intangible assets are amortized to income over the period during which we believe the assets will benefit us, on either a straight-line or an accelerated basis, over a period not to exceed 15 years. We have $168 million as at October 31, 2019 ($165 million as at October 31, 2018) in intangible assets with indefinite lives that relate primarily to fund management contracts. The useful lives of intangible assets are reviewed annually for any changes in circumstances. We test definite-life intangible assets for impairment when events or changes in circumstances indicate that their carrying value may not be recoverable. Indefinite-life intangible assets are tested annually for impairment. If any intangible assets are determined to be impaired, we write them down to their recoverable amount, the higher of value in use and fair value less costs to sell. There were write-downs of software-related intangible assets of $10 million during the year ended October 31, 2019 ($13 million in 2018 and $5 million in 2017). |
Other Assets
Other Assets | 12 Months Ended |
Oct. 31, 2019 | |
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Other Assets | Note 12: Other Assets Customers’ Liability under Acceptances Acceptances represent a form of negotiable short-term debt that is issued by our customers, which we guarantee for a fee. The fees earned are recorded in lending fees in our Consolidated Statement of Income over the term of the acceptance. The amount potentially due under acceptances is recorded in other liabilities on our Consolidated Balance Sheet. We record the bank’s equivalent claim against our customers in the event of a call on these commitments in other assets on our Consolidated Balance Sheet. Other The components of other within other assets are as follows: (Canadian $ in millions) 2019 2018 Accounts receivable, prepaid expenses and other items 2,905 2,781 Accrued interest receivable 1,755 1,461 Bank owned life insurance policies 4,242 4,154 Leased vehicles 870 937 Cash collateral 3,517 2,019 Due from clients, dealers and brokers 177 236 Insurance-related assets 1,163 822 Other employee future benefits assets (Note 21) 46 – Pension asset (Note 21) 186 664 Precious metals (1) 1,719 1,603 Total 16,580 14,677 (1) Precious metals are recorded at their fair value based on quoted prices in active markets . Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policies (Note 1). |
Deposits
Deposits | 12 Months Ended |
Oct. 31, 2019 | |
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Deposits | Note 13: Deposits Payable on demand (Canadian $ in millions) Interest bearing Non-interest bearing Payable after notice Payable on a fixed date (3) Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Deposits by: Banks (1) 1,996 1,450 1,530 1,400 1,017 526 19,273 24,531 23,816 27,907 Business and government 29,083 25,266 33,853 33,984 85,022 67,026 195,199 185,901 343,157 312,177 Individuals 3,361 3,476 23,084 21,345 94,304 90,233 80,421 65,790 201,170 180,844 Total (2) (4) 34,440 30,192 58,467 56,729 180,343 157,785 294,893 276,222 568,143 520,928 Booked in: Canada 27,338 21,735 49,911 47,231 90,630 82,091 181,835 160,069 349,714 311,126 United States 6,043 7,395 8,531 9,477 88,604 74,476 86,368 86,805 189,546 178,153 Other countries 1,059 1,062 25 21 1,109 1,218 26,690 29,348 28,883 31,649 Total 34,440 30,192 58,467 56,729 180,343 157,785 294,893 276,222 568,143 520,928 (1) Includes regulated and central banks. (2) Includes structured notes designated at fair value through profit or loss. (3) Includes $16,248 million of senior unsecured debt as at October 31, 2019 subject to the Bank Recapitalization (Bail-In) Bail-In non-viable. (4) As at October 31, 2019 and 2018, total deposits payable on a fixed date included $25,438 million and $29,673 million, respectively, of federal funds purchased, commercial paper issued and other deposit liabilities. Included in deposits as at October 31, 2019 and 2018 are $279,860 million and $259,747 million, respectively, of deposits denominated in U.S. dollars, and $36,680 million and $37,427 million, respectively, of deposits denominated in other foreign currencies. Certain comparative figures have been reclassified to conform with the current year’s presentation. Deposits payable on demand are comprised primarily of our customers’ chequing accounts, some of which we pay interest on. Our customers need not notify us prior to withdrawing money from their chequing accounts. Deposits payable after notice are comprised primarily of our customers’ savings accounts, on which we pay interest. Deposits payable on a fixed date are comprised of: • Various investment instruments purchased by our customers to earn interest over a fixed period, such as term deposits and guaranteed investment certificates. The terms of these deposits can vary from one day to 10 years. • Federal funds purchased, which are overnight borrowings of other banks’ excess reserve funds at the United States Federal Reserve Bank. As at October 31, 2019, we had borrowed $59 million of federal funds ($55 million in 2018). • Commercial paper, which totalled $9,495 million as at October 31, 2019 ($9,121 million in 2018). • Covered bonds, which totalled $25,465 million as at October 31, 2019 ($25,045 million in 2018). The following table presents the maturity schedule for our deposits payable on a fixed date: (Canadian $ in millions) 2019 2018 Within 1 year 183,952 162,666 1 to 2 years 34,401 34,154 2 to 3 years 23,855 26,107 3 to 4 years 21,735 16,708 4 to 5 years 16,959 22,196 Over 5 years 13,991 14,391 Total (1) 294,893 276,222 (1) Includes $273,657 million of deposits, each greater than one hundred thousand dollars, of which $167,294 million were booked in Canada, $79,682 million were booked in the United States and $26,681 million were booked in other countries ($246,685 million, $145,574 million, $71,770 million and $29,341 million, respectively, in 2018). Of the $167,294 million of deposits booked in Canada, $73,027 million mature in less than three months, $4,312 million mature in three to six months, $22,814 million mature in six to twelve months and $67,141 million mature after 12 months ($145,574 million, $55,190 million, $3,836 million, $12,909 million and $73,639 million, respectively, in 2018). We have unencumbered liquid assets of $249,650 million to support these and other deposit liabilities ($242,612 million in 2018). Certain comparative figures have been reclassified to conform with the current year’s presentation. Most of our structured note liabilities included in deposits have been designated at fair value through profit or loss, which aligns the accounting result with the way the portfolio is managed. The fair value and notional amount due at contractual maturity of these notes as at October 31, 2019 were $15,829 million and $15,431 million, respectively ($14,186 million and $15,088 million, respectively, in 2018). The change in fair value of these structured notes was recorded as a decrease of $1,414 million in non-interest non-interest The cumulative change in fair value related to changes in our own credit spread that has been recognized in other comprehensive income since the notes were designated at fair value to October 31, 2019 was an unrealized loss of approximately $141 million (unrealized loss of $255 million in 2018). |
Other Liabilities
Other Liabilities | 12 Months Ended |
Oct. 31, 2019 | |
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Other Liabilities | Note 14: Other Liabilities Acceptances Acceptances represent a form of negotiable short-term debt that is issued by our customers, which we guarantee for a fee. The fees earned are recorded in lending fees in our Consolidated Statement of Income over the term of the acceptance. The amount potentially due under acceptances is recorded in other liabilities on our Consolidated Balance Sheet. We record the bank’s equivalent claim against our customers in the event of a call on these commitments in other assets on our Consolidated Balance Sheet. Securities Lending and Borrowing Securities lending and borrowing transactions are generally collateralized by securities or cash. Cash advanced or received as collateral is recorded in other assets or other liabilities, respectively. Interest earned on cash collateral is recorded in interest, dividend and fee income in our Consolidated Statement of Income, and interest expense on cash collateral is recorded in interest expense, other liabilities, in our Consolidated Statement of Income. The transfer of the securities to counterparties is only reflected in our Consolidated Balance Sheet if the risks and rewards of ownership have also been transferred. Securities borrowed are not recognized in our Consolidated Balance Sheet unless they are then sold to third parties, in which case the obligation to return the securities is recorded at fair value in securities sold but not yet purchased, with any gains or losses recorded in non-interest Securities Sold But Not Yet Purchased Securities sold but not yet purchased represent our obligations to deliver securities that we did not own at the time of sale. These obligations are recorded at their fair value. Adjustments to the fair value as at the balance sheet date and gains and losses on the settlement of these obligations are recorded in trading revenues in our Consolidated Statement of Income. Securitization and Structured Entities’ Liabilities Securitization and structured entities’ liabilities include notes issued by our consolidated bank securitization vehicles and liabilities associated with the securitization of our Canadian mortgage loans as part of the Canada Mortgage Bond program, the National Housing Act Mortgage-Backed Securities program and our own programs. Additional information on our securitization programs and associated liabilities is provided in Notes 6 and 7. These liabilities are initially measured at fair value plus any directly attributable costs and are subsequently measured at amortized cost. The interest expense related to these liabilities is recorded in interest expense, other liabilities, in our Consolidated Statement of Income. Other The components of other within other liabilities are as follows: (Canadian $ in millions) 2019 2018 Accounts payable, accrued expenses and other items 8,613 8,152 Accrued interest payable 1,693 1,385 Cash collateral 5,128 5,466 Insurance-related liabilities 11,581 9,585 Liabilities of subsidiaries, other than deposits 7,934 9,283 Other employee future benefits liability (Note 21) 1,125 960 Payable to brokers, dealers and clients 2,204 1,898 Pension liability (Note 21) 329 256 Total 38,607 36,985 Certain comparative figures have been reclassified to conform with the current year’s presentation. Insurance-Related Liabilities We are engaged in insurance businesses related to life and health insurance, annuities and reinsurance. We designate the obligation related to certain investment contracts in our insurance business at fair value through profit or loss, which eliminates a measurement inconsistency that would otherwise arise from measuring the investment contract liabilities and offsetting changes in the fair value of the investments supporting them on a different basis. The fair value of these investment contract liabilities as at October 31, 2019 of $1,043 million ($800 million as at October 31, 2018) is recorded in other liabilities in our Consolidated Balance Sheet. The change in fair value of these investment contract liabilities resulted in an increase of $119 million in insurance claims, commissions and changes in policy benefit liabilities for the year ended October 31, 2019 (decrease of $28 million in 2018). For the year ended October 31, 2019, a loss of $12 million was recorded in other comprehensive income related to changes in our own credit spread (loss of $2 million in 2018). The impact of changes in our own credit spread is measured based on movements in our own credit spread year over year. Changes in the fair value of investments backing these investment contract liabilities are recorded in non-interest spread that has been recognized in other comprehensive income since the investment contracts were designated at fair value to October 31, 2019 was an unrealized loss of approximately $33 million ($21 million in 2018). Insurance claims and policy benefit liabilities represent current claims and estimates of future insurance policy benefit liabilities. Liabilities for life insurance contracts are determined using the Canadian Asset Liability Method, which incorporates best-estimate assumptions for mortality, morbidity, policy lapses, surrenders, future investment yields, policy dividends, administration costs and margins for adverse deviation. These assumptions are reviewed at least annually and updated to reflect actual experience and market conditions. A reconciliation of the change in insurance-related liabilities is as follows: (Canadian $ in millions) 2019 2018 Insurance-related liabilities, beginning of year 9,585 8,959 Increase (decrease) in life insurance policy benefit liabilities from: New business 706 742 In-force 906 (400 ) Changes in actuarial assumptions and methodology 23 3 Net increase in life insurance policy benefit liabilities 1,635 345 Change in other insurance-related liabilities 361 281 Insurance-related liabilities, end of year 11,581 9,585 Reinsurance In the ordinary course of business, our insurance subsidiaries reinsure risks to other insurance and reinsurance companies in order to provide greater diversification, limit loss exposure to large risks, and provide additional capacity for future growth. These ceding reinsurance arrangements do not relieve our insurance subsidiaries of their direct obligation to the insured parties. We evaluate the financial condition of the reinsurers and monitor their credit ratings to minimize our exposure to losses from reinsurer insolvency. Reinsurance premiums ceded are recorded net against direct premium income and are included in non-interest (Canadian $ in millions) 2019 2018 2017 Direct premium income 1,944 1,976 1,750 Ceded premiums (158 ) (148 ) (157 ) 1,786 1,828 1,593 |
Subordinated Debt
Subordinated Debt | 12 Months Ended |
Oct. 31, 2019 | |
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Subordinated Debt | Note 15: Subordinated Debt Subordinated debt represents our direct unsecured obligations to our debt holders, in the form of notes and debentures, and forms part of our regulatory capital. Subordinated debt is recorded at amortized cost using the effective interest rate method. Where appropriate, we enter into fair value hedges to hedge the risks caused by changes in interest rates (see Note 8). The rights of the holders of our notes and debentures are subordinate to the claims of depositors and certain other creditors. We require approval from OSFI before we can redeem any part of our subordinated debt. The face values, terms to maturity and carrying values of our subordinated debt are as follows: (Canadian $ in millions, except as noted) Face value Maturity date Interest rate (%) Redeemable at our option 2019 2018 Debentures Series 20 150 December 2025 to 2040 8.25 Not redeemable 145 143 Series H Medium-Term Notes, First Tranche (8) 1,000 September 2024 3.12 September 2019 (1) – 1,003 Series H Medium-Term Notes, Second Tranche (8) 1,000 December 2025 3.34 December 2020 (2) 983 916 Series I Medium-Term Notes, First Tranche (8) 1,250 June 2026 3.32 June 2021 (3) 1,230 1,222 Series I Medium-Term Notes, Second Tranche (8) 850 June 2027 2.57 June 2022 (4) 820 813 3.803% Subordinated Notes due 2032 (8) US 1,250 December 2032 3.80 December 2027 (5) 1,646 1,573 4.338% Subordinated Notes due 2028 (8) US 850 October 2028 4.34 October 2023 (6) 1,180 1,112 Series J Medium-Term Notes, First Tranche (8)(9) 1,000 September 2029 2.88 September 2024 (7) 991 – Total (10) 6,995 6,782 (1) All $1,000 million Series H Medium-Term Notes, First Tranche were redeemed on September 19, 2019 for 100% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. (2) Redeemable at the greater of par and the Canada Yield Price prior to December 8, 2020, and redeemable at par together with accrued and unpaid interest to, but excluding, their redemption date commencing December 8, 2020. (3) Redeemable at the greater of par and the Canada Yield Price prior to June 1, 2021, and redeemable at par together with accrued and unpaid interest to, but excluding, their redemption date commencing June 1, 2021. (4) Redeemable at the greater of par and the Canada Yield Price prior to June 1, 2022, and redeemable at par together with accrued and unpaid interest to, but excluding, their redemption date commencing June 1, 2022. (5) Redeemable at par on December 15, 2027 together with accrued and unpaid interest to, but excluding, the redemption date. (6) Redeemable at par on October 5, 2023 together with accrued and unpaid interest to, but excluding, the redemption date. (7) Redeemable at par on September 17, 2024 together with accrued and unpaid interest to, but excluding, the redemption date. (8) These notes include a non-viability non-viable non-viability. (9) On September 16, 2019, we issued $1,000 million of Series J Medium — Term Notes, First Tranche. (10) Certain amounts of subordinated debt were issued at a premium or discount and include fair value hedge adjustments, which together decreased their carrying value as at October 31, 2019 by $20 million (decreased by $233 million in 2018); see Note 8 for further details for hedge adjustments. The carrying value is also adjusted for our Off-Balance . |
Equity
Equity | 12 Months Ended |
Oct. 31, 2019 | |
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Equity | Note 16: Equity Preferred and Common Shares Outstanding and Other Equity Instruments (Canadian $ in millions, except as noted) 2019 2018 Number of Amount Dividends declared Number of Amount Dividends declared Preferred Shares – Classified as Equity Class B – Series 16 (1) – – – – – 0.64 Class B – Series 17 (2) – – – – – 0.52 Class B – Series 25 9,425,607 236 0.45 9,425,607 236 0.45 Class B – Series 26 2,174,393 54 0.70 2,174,393 54 0.59 Class B – Series 27 20,000,000 500 0.98 20,000,000 500 1.00 Class B – Series 29 16,000,000 400 0.96 16,000,000 400 0.98 Class B – Series 31 12,000,000 300 0.95 12,000,000 300 0.95 Class B – Series 33 8,000,000 200 0.95 8,000,000 200 0.95 Class B – Series 35 6,000,000 150 1.25 6,000,000 150 1.25 Class B – Series 36 600,000 600 58.50 600,000 600 58.50 Class B – Series 38 24,000,000 600 1.21 24,000,000 600 1.21 Class B – Series 40 20,000,000 500 1.13 20,000,000 500 1.13 Class B – Series 42 16,000,000 400 1.10 16,000,000 400 1.10 Class B – Series 44 (3) 16,000,000 400 1.44 16,000,000 400 – Class B – Series 46 (4) 14,000,000 350 0.77 – – – Preferred Shares – Classified as Equity 4,690 4,340 Other Equity Instruments (5) 658 – Preferred Shares and Other Equity Instruments 5,348 4,340 Common Shares Balance at beginning of year 639,329,625 12,929 647,816,318 13,032 Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan – – – – Issued/cancelled under the Stock Option Plan and other stock-based compensation plans (Note 20) 902,651 62 1,513,307 99 Repurchased for cancellation (1,000,000 ) (20 ) (10,000,000 ) (202 ) Balance at End of Year 639,232,276 12,971 4.06 639,329,625 12,929 3.78 (1) On August 25, 2018, we redeemed all 6,267,391 Non-Cumulative (2) On August 25, 2018, we redeemed all 5,732,609 Non-Cumulative (3) On September 17, 2018, we issued 16 million Non-Cumulative 5-Year (4) On April 17, 2019, we issued 14 million Non-Cumulative (5) On July 30, 2019, we issued US$500 million 4.800% Additional Tier 1 Capital Notes. Preferred Share Rights and Privileges (Canadian $, except as noted) Redemption amount Quarterly non-cumulative dividend (1) Reset premium Date redeemable / convertible Convertible to Class B – Series 25 25.00 $0.112813 (2) 1.15% August 25, 2021 (3)(4) Class B – Series 26 (8) Class B – Series 26 25.00 Floating (7) 1.15% August 25, 2021 (3)(5) Class B – Series 25 (8) Class B – Series 27 25.00 $ 0.24075 (2) 2.33% May 25, 2024 (3)(4) Class B – Series 28 (8)(9) Class B – Series 29 25.00 $ 0.2265 (2) 2.24% August 25, 2024 (3)(4) Class B – Series 30 (8)(9) Class B – Series 31 25.00 $ 0.2375 (2) 2.22% November 25, 2019 (3)(4) Class B – Series 32 (8)(9) Class B – Series 33 25.00 $ 0.2375 (2) 2.71% August 25, 2020 (3)(4) Class B – Series 34 (8)(9) Class B – Series 35 25.00 $ 0.3125 Does not reset August 25, 2020 (6) Not convertible (9) Class B – Series 36 1,000.00 $ 14.6250 (2) 4.97% November 25, 2020 (3)(4) Class B – Series 37 (8)(9) Class B – Series 38 25.00 $0.303125 (2) 4.06% February 25, 2022 (3)(4) Class B – Series 39 (8)(9) Class B – Series 40 25.00 $ 0.28125 (2) 3.33% May 25, 2022 (3)(4) Class B – Series 41 (8)(9) Class B – Series 42 25.00 $ 0.2750 (2) 3.17% August 25, 2022 (3)(4) Class B – Series 43 (8)(9) Class B – Series 44 25.00 $0.303125 (2) 2.68% November 25, 2023 (3)(4) Class B – Series 45 (8)(9) Class B – Series 46 25.00 $ 0.31875 (2) 3.51% May 25, 2024 (3)(4) Class B – Series 47 (8)(9) (1) Non-cumulative (2) The dividend rate will reset on the date redeemable and every five years thereafter at a rate equal to the 5-year 3-month (3) Redeemable on the date noted and every five years thereafter. (4) Convertible on the date noted and every five years thereafter if not redeemed. If converted, the shares will become floating rate preferred shares. (5) Convertible on the date noted and every five years thereafter if not redeemed. If converted, the shares will become fixed rate preferred shares. (6) Series 35 is subject to a redemption premium if redeemed prior to August 25, 2024. (7) Floating rate will be set as, and when declared, at the 3-month (8) If converted, the holders have the option to convert back to the original preferred shares on subsequent redemption dates. (9) The shares issued include a non-viability contingent capital provision, which is necessary for the shares to qualify as regulatory capital under Basel III. Refer to the Non-Viability Contingent Capital paragraph below for details. On September 27, 2019, we announced that we did not intend to exercise our right to redeem the currently outstanding Non-Cumulative 5-Year Rate Reset Class B Preferred Shares Series 31 (“Preferred Shares Series 31”) on November 25, 2019. As a result, subject to certain conditions, the holders of Preferred Shares Series 31 had the right, at their option, by November 12, 2019, to convert any or all of their Preferred Shares Series 31 on a one-for-one basis into Non-Cumulative Floating Rate Class B Preferred Shares Series 32 (“Preferred Shares Series 32”). During the conversion period, which ran from October 28, 2019 to November 12, 2019, 69,570 Preferred Shares Series 31 were tendered for conversion into Preferred Shares Series 32, which is less than the minimum 1,000,000 required to give effect to the conversion, as described in the Preferred Shares Series 31 prospectus supplement dated July 23, 2014. As a result, no Preferred Shares Series 32 were issued and holders of Preferred Shares Series 31 retained their shares. The dividend rate for the Preferred Shares Series 31 for the five-year period commencing on November 25, 2019, and ending on November 24, 2024, will be 3.851%. On June 27, 2019, we announced that we did not intend to exercise our right to redeem the currently outstanding Non-Cumulative 5-Year one-for-one Non-Cumulative On April 17, 2019, we issued 14 million Non-Cumulative 5-Year 5-year Non-Cumulative non-cumulative 3-month On March 29, 2019, we announced that we did not intend to exercise our right to redeem the currently outstanding Non-Cumulative 5-Year one-for-one Non-Cumulative Other Equity Instruments On July 30, 2019, we issued US$500 million 4.800% Additional Tier 1 Capital Notes (Non-Viability Contingent Capital (“NVCC”)) (“notes”), which are classified as equity and form part of our additional Tier 1 non-viability (Canadian $, in millions, except as noted) 2019 2018 Face value Interest rate (%) Redeemable at our option Convertible to Total Total 4.800% Additional Tier 1 Capital Notes US$ 500 4.800 (1) August 2024 (2) Variable number of common shares (3) 658 – Total 658 – (1) Non-cumulative (2) The notes are redeemable at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest, in whole or in part, at our option on any interest payment date on or after the first interest reset date in 2024 or following certain regulatory or tax events. The bank may, at any time, purchase the notes at any price in the open market. (3) The notes issued include a non-viability Authorized Share Capital We classify financial instruments that we issue as financial liabilities, equity instruments or compound instruments. Financial instruments that will be settled by a variable number of our common shares upon conversion by the holders are classified as liabilities on our Consolidated Balance Sheet. Dividends and interest payments on financial liabilities are classified as interest expense in our Consolidated Statement of Income. Financial instruments are classified as equity instruments when there is no contractual obligation to transfer cash or other financial assets. Further, issued instruments that are not mandatorily redeemable, or that are not convertible into a variable number of our common shares at the holder’s option, are classified as equity and presented in share capital. Dividend payments on equity instruments are recognized as a reduction in equity. Common Shares We are authorized by our shareholders to issue an unlimited number of our common shares, without par value, for unlimited consideration. Our common shares are not redeemable or convertible. Dividends are declared by our Board of Directors at their discretion. Historically, the Board of Directors has declared dividends on a quarterly basis and the amount can vary from quarter to quarter. Preferred Shares We are authorized by our shareholders to issue an unlimited number of Class A Preferred Shares and Class B Preferred Shares, without par value, in series, for unlimited consideration. Class B Preferred Shares may be issued in a foreign currency. Treasury Shares When we purchase our common shares as part of our trading business, we record the cost of those shares as a reduction in shareholders’ equity. If those shares are resold at a price higher than their cost, the premium is recorded as an increase in contributed surplus. If those shares are resold at a price below their cost, the discount is recorded as a reduction first to contributed surplus and then to retained earnings for any amount in excess of the total contributed surplus related to treasury shares. Non-Viability Class B – Series 27, Class B – Series 29, Class B – Series 31, Class B – Series 33, Class B – Series 35, Class B – Series 36, Class B – Series 38, Class B – Series 40, Class B – Series 42, Class B – Series 44 and Class B – Series 46 preferred share issues and the other equity instruments include a non-viability non-viable non-viability. Normal Course Issuer Bid We renewed our normal course issuer bid (“NCIB”), effective June 3, 2019 for one year. Under this NCIB, we may purchase up to 15 million of our common shares for cancellation. The timing and amount of purchases under the NCIB are subject to management discretion based on factors such as market conditions and capital levels. The bank will consult with OSFI before making purchases under the NCIB. During the year ended October 31, 2019, we purchased for cancellation 1 million of our common shares (10 million in 2018). Share Redemption and Dividend Restrictions OSFI must approve any plan to redeem any of our preferred share issues or other equity instruments for cash. We are prohibited from declaring dividends on our preferred or common shares when we would be, as a result of paying such a dividend, in contravention of the capital adequacy, liquidity or any other regulatory directive issued under the Bank Act (Canada) In addition, if the bank does not pay the interest in full on the Additional Tier 1 Capital Notes, the bank will not declare dividends on its common shares or preferred shares or redeem, purchase or otherwise retire such shares until the month commencing after the bank resumes full interest payments on the Additional Tier 1 Capital Notes. Currently, these limitations do not restrict the payment of dividends on common or preferred shares. Shareholder Dividend Reinvestment and Share Purchase Plan We offer a Dividend Reinvestment and Share Purchase Plan (“DRIP”) for our shareholders. Participation in the plan is optional. Under the terms of the DRIP, cash dividends on common shares are reinvested to purchase additional common shares. Shareholders also have the opportunity to make optional cash payments to acquire additional common shares. For dividends paid in fiscal 2019 and 2018, common shares to supply the DRIP were purchased in the open market. During the year ended October 31, 2019, we did not issue any common shares from treasury (nil in 2018) and purchased 2,198,109 common shares in the open market (1,995,353 in 2018) for delivery to shareholders under the DRIP. Potential Share Issuances As at October 31, 2019, we had reserved 39,947,147 common shares (39,947,147 in 2018) for potential issuance in respect of the DRIP. We have also reserved 6,108,307 common shares (6,095,201 in 2018) for the potential exercise of stock options, as further described in Note 20. Capital Trust Securities On December 31, 2018, BMO Capital Trust II redeemed all of its issued and outstanding BMO Tier 1 Notes – Series A at a redemption amount equal to $1,000 for an aggregate redemption of $450 million, plus accrued and unpaid interest to but excluding the redemption date. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments and Trading-Related Revenue | 12 Months Ended |
Oct. 31, 2019 | |
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Fair Value of Financial Instruments and Trading-Related Revenue | Note 17: Fair Value of Financial Instruments and Trading-Related Revenue We record trading assets and liabilities, derivatives, certain equity and debt securities and securities sold but not yet purchased at fair value, and other non-trading legal entities or underlying operations that comprise our business. For certain portfolios of financial instruments where we manage exposures to similar and offsetting risks, fair value is determined on the basis of our net exposure to that risk. Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. The fair value amounts disclosed represent point-in-time Governance Over the Determination of Fair Value Senior executive oversight of our valuation processes is provided through various valuation and risk committees. In order to ensure that all financial instruments carried at fair value are reasonably measured for risk management and financial reporting purposes, we have established governance structures and controls, such as model validation and approval, independent price verification (“IPV”) and profit or loss attribution analysis (“PAA”), consistent with industry practice. These controls are applied independently of the relevant operating groups. We establish valuation methodologies for each financial instrument that is required to be measured at fair value. The application of valuation models for products or portfolios is subject to independent approval to ensure only validated models are used. The impact of known limitations of models and data inputs is also monitored on an ongoing basis. IPV is a process that regularly and independently verifies the accuracy and appropriateness of market prices or model inputs used in the valuation of financial instruments. This process assesses fair values using a variety of different approaches to verify and validate the valuations. PAA is a daily process carried out by management to identify and explain changes in fair value positions across all operating lines of business within BMO Capital Markets. This process works in concert with other processes to ensure that the fair values being reported are reasonable and appropriate. Securities For traded securities, quoted market value is considered to be fair value. Quoted market value is based on bid or ask prices, depending on which is the most appropriate to measure fair value. Securities for which no active market exists are valued using all reasonably available market information. Our fair value methodologies are described below. Government Securities The fair value of government issued or guaranteed debt securities in active markets is determined by reference to recent transaction prices, broker quotes or third-party vendor prices. The fair value of securities that are not traded in an active market is modelled using implied yields derived from the prices of similar actively traded government securities and observable spreads. Market inputs to the model include coupon, maturity and duration. Mortgage-Backed Securities and Collateralized Mortgage Obligations The fair value of mortgage-backed securities and collateralized mortgage obligations is determined using prices obtained from independent third-party vendors, broker quotes and relevant market indices, as applicable. If such prices are not available, fair value is determined using cash flow models that make maximum use of observable market inputs or benchmark prices for similar instruments. Valuation assumptions for mortgage-backed securities and collateralized mortgage obligations include discount rates, expected prepayments, credit spreads and recoveries. Corporate Debt Securities The fair value of corporate debt securities is determined using prices observed in the most recent transactions. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discounting curves and spreads obtained from independent dealers, brokers and multi-contributor pricing sources. Trading Loans The fair value of trading loans is determined by referring to current market prices for the same or similar instruments. Corporate Equity Securities The fair value of corporate equity securities is based on quoted prices in active markets, where available. Where quoted prices in active markets are not readily available, fair value is determined using either quoted market prices for similar securities or using valuation techniques, which include discounted cash flow analysis and earnings multiples. Privately Issued Securities Privately issued debt and equity securities are valued using prices observed in recent market transactions, where available. Otherwise, fair value is derived from valuation models using a market or income approach. These models consider various factors, including projected cash flows, earnings, revenue and other third-party evidence, as available. The fair value of limited partnership investments is based on net asset values published by third-party fund managers. Prices from brokers and multi-contributor pricing sources are corroborated as part of our independent review process, which may include using valuation techniques or obtaining consensus or composite prices from other pricing services. We validate the estimates of fair value by independently obtaining multiple quotes for external market prices and input values. We review the approach taken by third-party vendors to ensure that vendors employ a valuation model that maximizes the use of observable inputs such as benchmark yields, bid-ask Loans In determining the fair value of our fixed rate performing loans, other than credit card loans, we discount the remaining contractual cash flows, adjusted for estimated prepayment, at market interest rates currently offered for loans with similar terms and risks. For credit card performing loans, fair value is considered to be equal to carrying value, due to their short-term nature. For floating rate performing loans, changes in interest rates have minimal impact on fair value since interest rates are repriced or reset frequently. On that basis, fair value is assumed to be equal to carrying value. The fair value of loans is not adjusted for the value of any credit protection purchased to mitigate credit risk. Derivative Instruments A number of valuation techniques are employed to estimate fair value, including discounted cash flow analysis, the Black-Scholes model, Monte Carlo simulation and other accepted market models. These independently validated models incorporate current market data for interest rates, foreign currency exchange rates, equity and commodity prices and indices, credit spreads, recovery rates, corresponding market volatility levels, spot prices, correlation levels and other market-based pricing factors. Option implied volatilities, an input into many valuation models, are either obtained directly from market sources or calculated from market prices. Multi-contributor pricing sources are used wherever possible. In determining the fair value of complex and customized derivatives, we consider all reasonably available information, including dealer and broker quotations, multi-contributor pricing sources and any relevant observable market inputs. Our model calculates fair value based on inputs specific to the type of contract, which may include stock prices, correlation for multiple assets, interest rates, foreign currency exchange rates, yield curves and volatilities. We calculate a credit valuation adjustment (“CVA”) to recognize the bilateral risk that either counterparty to a given derivative may not ultimately be able to fulfill its obligations. The CVA is derived from market-observed credit spreads or proxy credit spreads and our assessment of the net counterparty credit risk exposure, taking into account credit mitigants such as collateral, master netting agreements and novation to central counterparties. We also calculate a funding valuation adjustment (“FVA”) to recognize the implicit funding costs associated with over-the-counter Deposits In determining the fair value of our deposits, we incorporate the following assumptions: • For fixed rate, fixed maturity deposits, we discount the remaining contractual cash flows related to these deposits, adjusted for expected redemptions, at market interest rates currently offered for deposits with similar terms and risks. The fair value of our senior note liabilities and covered bonds is determined by referring to current market prices for similar instruments or using valuation techniques, such as discounted cash flow models that use market interest rate yield curves and funding spreads. • For fixed rate deposits with no defined maturities, we consider fair value to equal carrying value, since carrying value is equivalent to the amount payable on the reporting date. • For floating rate deposits, changes in interest rates have minimal impact on fair value, since deposits reprice to market frequently. On that basis, fair value is considered to equal carrying value. Certain of our structured note liabilities that have coupons or repayment terms linked to the performance of interest rates, foreign currencies, commodities or equity securities have been designated at fair value through profit or loss. The fair value of these structured notes is estimated using internally validated valuation models and incorporates observable market prices for identical or comparable securities, as well as other inputs, such as interest rate yield curves, option volatilities and foreign exchange rates, where appropriate. Where observable prices or inputs are not available, management judgment is required to determine the fair value by assessing other relevant sources of information, such as historical data and proxy information from similar transactions. Securities Sold But Not Yet Purchased The fair value of these obligations is based on the fair value of the underlying securities, which can be equity or debt securities. As these obligations are fully collateralized, the method used to determine fair value would be the same as that used for the relevant underlying equity or debt securities. Securitization and Structured Entities’ Liabilities The determination of the fair value of our securitization and structured entities’ liabilities is based on quoted market prices or quoted market prices for similar financial instruments, where available. Where quoted prices are not available, fair value is determined using valuation techniques, such as discounted cash flow models that maximize the use of observable inputs. Subordinated Debt The fair value of our subordinated debt is determined by referring to current market prices for the same or similar instruments. Financial Instruments with a Carrying Value Approximating Fair Value Short-term and Other Financial Instruments Carrying value is considered to be a reasonable estimate of fair value for our cash and cash equivalents. The carrying value of certain financial assets and liabilities, such as interest bearing deposits with banks, securities borrowed or purchased under resale agreements, customers’ liability under acceptances, other assets, acceptances, securities lent or sold under repurchase agreements and other liabilities, is a reasonable estimate of fair value due to their short-term nature or because they are frequently repriced to current market rates. Certain assets, including premises and equipment, goodwill and intangible assets, as well as shareholders’ equity, are not financial instruments and therefore no fair value has been determined for these items. Fair Value Hierarchy We use a fair value hierarchy to categorize financial instruments according to the inputs we use in valuation techniques to measure fair value. Fair Value of Financial Instruments Not Carried at Fair Value on the Balance Sheet Set out in the following tables are the fair values of financial instruments not carried at fair value on our Consolidated Balance Sheet. (Canadian $ in millions) 2019 Carrying Fair value Valued using Valued using Valued using Securities Amortized cost 24,472 24,622 13,612 11,010 – Loans (1) Residential mortgages 123,676 124,093 – 124,093 – Consumer instalment and other personal 67,200 67,516 – 67,516 – Credit cards 8,623 8,623 – 8,623 – Business and government (2) 224,442 225,145 – 225,145 – 423,941 425,377 – 425,377 – Deposits (3) 552,314 553,444 – 553,444 – Securitization and structured entities’ liabilities 27,159 27,342 – 27,342 – Subordinated debt 6,995 7,223 – 7,223 – (1) Carrying value of loans is net of allowance. (2) Excludes $2,156 million of loans classified as FVTPL and $22 million of loans classified as FVOCI. (3) Excludes $15,829 million of structured note liabilities designated at FVTPL and accounted for at fair value. This table excludes certain financial instruments with a carrying value approximating fair value, such as cash and cash equivalents, interest bearing deposits with banks, securities borrowed or purchased under resale agreements, customers’ liability under acceptances, other assets, acceptances, securities lent or sold under repurchase agreements and other liabilities. (Canadian $ in millions) 2018 Carrying Fair value Valued using Valued using Valued using Securities Amortized cost 6,485 6,288 429 5,795 64 Loans (1) Residential mortgages 119,544 118,609 – 118,609 – Consumer instalment and other personal 62,687 62,618 – 62,618 – Credit cards 8,099 8,099 – 8,099 – Business and government (2) 192,225 191,989 – 191,989 – 382,555 381,315 – 381,315 – Deposits (3) 506,742 506,581 – 506,581 – Securitization and structured entities’ liabilities 25,051 24,838 – 24,838 – Subordinated debt 6,782 6,834 – 6,834 – (1) Carrying value of loans is net of allowance. (2) Excludes $1,450 million of loans classified as FVTPL. (3) Excludes $14,186 million of structured note liabilities designated at FVTPL and accounted for at fair value. This table excludes certain financial instruments with a carrying value approximating fair value, such as cash and cash equivalents, interest bearing deposits with banks, securities borrowed or purchased under resale agreements, customers’ liability under acceptances, other assets, acceptances, securities lent or sold under repurchase agreements and other liabilities. Valuation Techniques and Significant Inputs We determine the fair value of publicly traded fixed maturity debt and equity securities using quoted prices in active markets (Level 1) when these are available. When quoted prices in active markets are not available, we determine the fair value of financial instruments using models such as discounted cash flows, with observable market data for inputs, such as yield and prepayment rates or broker quotes and other third-party vendor quotes (Level 2). Fair value may also be determined using models where significant market inputs are not observable due to inactive markets or minimal market activity (Level 3). We maximize the use of observable market inputs to the extent possible. Our Level 2 trading securities are primarily valued using discounted cash flow models with observable spreads or broker quotes. The fair value of Level 2 FVOCI securities is determined using discounted cash flow models with observable spreads or third-party vendor quotes. Level 2 structured note liabilities are valued using models with observable market information. Level 2 derivative assets and liabilities are valued using industry-standard models and observable market information. The extent of our use of actively quoted market prices (Level 1), internal models using observable market information as inputs (Level 2) and models without observable market information as inputs (Level 3) in the valuation of securities, business and government loans classified as FVTPL, fair value liabilities, derivative assets and derivative liabilities is presented in the following table: (Canadian $ in millions) 2019 2018 Valued using Valued using Valued using Total Valued using Valued using Valued using Total Trading Securities Issued or guaranteed by: Canadian federal government 6,959 1,371 – 8,330 9,107 1,213 – 10,320 Canadian provincial and municipal governments 3,871 3,656 – 7,527 4,013 4,689 – 8,702 U.S. federal government 8,001 762 – 8,763 9,465 52 – 9,517 U.S. states, municipalities and agencies 48 626 – 674 78 1,138 – 1,216 Other governments 888 697 – 1,585 1,210 201 – 1,411 NHA MBS and U.S. agency MBS and CMO 14 10,494 538 11,046 60 8,869 255 9,184 Corporate debt 2,620 5,091 7 7,718 2,973 6,218 7 9,198 Trading loans – 103 – 103 – 199 – 199 Corporate equity 40,155 2 – 40,157 49,946 4 – 49,950 62,556 22,802 545 85,903 76,852 22,583 262 99,697 FVTPL Securities Issued or guaranteed by: Canadian federal government 410 107 – 517 328 103 – 431 Canadian provincial and municipal governments 364 915 – 1,279 219 727 – 946 U.S. federal government – 48 – 48 69 – – 69 Other governments – 49 – 49 – – – – NHA MBS and U.S. agency MBS and CMO – 5 – 5 – 7 – 7 Corporate debt 146 8,071 – 8,217 178 6,643 – 6,821 Corporate equity 1,536 69 1,984 3,589 1,378 134 1,825 3,337 2,456 9,264 1,984 13,704 2,172 7,614 1,825 11,611 FVOCI Securities Issued or guaranteed by: Canadian federal government 11,168 776 – 11,944 11,978 827 – 12,805 Canadian provincial and municipal governments 3,798 2,214 – 6,012 3,315 3,547 – 6,862 U.S. federal government 15,068 907 – 15,975 16,823 – – 16,823 U.S. states, municipalities and agencies 1 4,159 1 4,161 14 3,640 1 3,655 Other governments 4,396 2,939 – 7,335 3,143 1,647 – 4,790 NHA MBS and U.S. agency MBS and CMO – 14,000 – 14,000 – 13,687 – 13,687 Corporate debt 2,205 2,802 – 5,007 1,959 1,797 – 3,756 Corporate equity – – 81 81 – – 62 62 36,636 27,797 82 64,515 37,232 25,145 63 62,440 Business and Government Loans – 442 1,736 2,178 – – 1,450 1,450 Fair Value Liabilities Securities sold but not yet purchased 22,393 3,860 – 26,253 26,336 2,468 – 28,804 Structured note liabilities and other note liabilities – 15,829 – 15,829 – 14,186 – 14,186 Annuity liabilities – 1,043 – 1,043 – 800 – 800 22,393 20,732 – 43,125 26,336 17,454 – 43,790 Derivative Assets Interest rate contracts 14 10,443 – 10,457 18 8,177 – 8,195 Foreign exchange contracts 7 9,262 – 9,269 16 12,983 – 12,999 Commodity contracts 329 817 – 1,146 166 1,894 – 2,060 Equity contracts 226 997 – 1,223 286 1,872 – 2,158 Credit default swaps – 49 – 49 – 10 – 10 576 21,568 – 22,144 486 24,936 – 25,422 Derivative Liabilities Interest rate contracts 11 7,943 – 7,954 14 7,838 – 7,852 Foreign exchange contracts 20 10,843 – 10,863 2 11,852 – 11,854 Commodity contracts 218 1,462 – 1,680 295 1,161 – 1,456 Equity contracts 103 2,896 – 2,999 246 2,183 1 2,430 Credit default swaps – 101 1 102 – 36 1 37 352 23,245 1 23,598 557 23,070 2 23,629 Quantitative Information about Level 3 Fair Value Measurements The table below presents the fair values of our significant Level 3 financial instruments, the valuation techniques used to determine their fair values and the value ranges of significant unobservable inputs used in the valuations. We have not applied any other reasonably possible alternative assumption to the significant Level 3 categories of private equity investments, as the net asset values are provided by the investment or fund managers. As at October 31, 2019 (Canadian $ in millions, except as noted) Reporting line in fair value hierarchy table Fair value Valuation techniques Significant Range of input values (1) Low High Private equity (2) Corporate equity 1,984 Net asset value Net asset value na 5x na 16x Loans (3) Business and government loans 1,736 Discounted cash flows Discount margin 70 bps 115 bps NHA MBS and U.S. agency MBS and CMO NHA MBS and U.S. agency MBS and CMO 538 Discounted cash flows Prepayment rate 2 % 30 % Market comparable Comparability adjustment (4) (5.91 ) 8.57 (1) The low and high input values represent the highest and lowest actual level of inputs used to value a group of financial instruments in a particular product category. These input ranges do not reflect the level of input uncertainty, but are affected by the specific underlying instruments within each product category. The input ranges will therefore vary from period to period based on the characteristics of the underlying instruments held at each balance sheet date. (2) Included in private equity is $829 million of Federal Reserve Bank and U.S. Federal Home Loan Bank shares that we carry at cost, which approximates fair value, and hold to meet regulatory requirements. (3) The impact of assuming a 10 basis point increase or decrease in discount margin for business and government loans is $3 million. (4) Range of input values represents price per security adjustment. na – not applicable Significant Unobservable Inputs in Level 3 Instrument Valuations Net Asset Value Net asset value represents the estimated value of a security based on valuations received from the investment or fund manager. The valuation of certain private equity securities is based on the economic benefit we derive from our investment. EV/EBITDA Multiple The fair value of private equity and merchant banking investments is derived by calculating an enterprise value (“EV”) using the EV/EBITDA multiple and then proceeding through a waterfall of the company’s capital structure to determine the value of the assets or securities we hold. The EV/EBITDA multiple is determined using judgment in considering factors such as multiples for comparable listed companies, recent transactions and company-specific factors, as well as liquidity discounts that account for the lack of active trading in these assets and securities. Discount Margin Loan and corporate debt yield is the interest rate used to discount expected future cash flows in the valuation model. The discount margin is the difference between an instrument’s yield and a benchmark instrument’s yield. Benchmark instruments, such as government bonds, have high credit quality ratings and similar maturities. The discount margin therefore represents a market return that accounts for uncertainty in future cash flows. Generally, a higher or lower discount margin will result in a lower or higher fair value. Discounted Cash Flow Discounted cash flow models are used to fair value our NHA MBS and U.S. agency MBS and CMOs. The cash flow model includes assumptions related to conditional prepayment rates, constant default rates and percentage loss on default. Market Comparable Pricing Market comparable pricing is used to evaluate the fair value of NHA MBS and U.S. agency MBS and CMOs. This technique involves sourcing prices from third parties for similar instruments and applying adjustments to reflect recent transaction prices and instrument specific characteristics. Significant Transfers Our policy is to record transfers of assets and liabilities between fair value hierarchy levels at their fair values as at the end of each reporting period, consistent with the date of the determination of fair value. Transfers between the various fair value hierarchy levels reflect changes in the availability of quoted market prices or observable market inputs that result from changes in market conditions. The following is a discussion of the significant transfers between Level 1, Level 2 and Level 3 balances for the year ended October 31, 2019. During the year ended October 31, 2019, we refined our judgment of whether quoted prices for fixed income securities were obtained from markets that were active or not in the determination of whether a security should be classified as Level 1 or Level 2, with the result that certain securities were transferred to Level 2 in the year. During the year ended October 31, 2019, $5,831 million of trading securities, $715 million of FVTPL securities, $11,014 million of FVOCI securities and $9,973 million of securities sold but not yet purchased ($2,578 million of trading securities, $714 million of FVTPL securities, $2,266 million of FVOCI securities and $3,971 million of securities sold but not yet purchased respectively, in 2018) were transferred from Level 1 to Level 2 due to our refined approach and reduced observability of the inputs used to value these securities. During the year ended October 31, 2019, $7,985 million of trading securities, $808 million of FVTPL securities, $7,309 million of FVOCI securities and $7,898 million of securities sold but not yet purchased ($4,122 million of trading securities, $742 million of FVTPL securities, $4,044 million of FVOCI securities and $4,210 million of securities sold but not yet purchased respectively, in 2018) were transferred from Level 2 to Level 1 due to increased availability of quoted prices in active markets. During the year ended October 31, 2019, $159 million ($nil in 2018) of trading securities were transferred from Level 2 to Level 3 due to changes in the market observability of inputs used in pricing these securities, and $87 million ($nil in 2018) were transferred from Level 3 to Level 2 due to the availability of observable price inputs used to value these securities. Changes in Level 3 Fair Value Measurements The tables below present a reconciliation of all changes in Level 3 financial instruments during the years ended October 31, 2019 and 2018, including realized and unrealized gains (losses) included in earnings and other comprehensive income. Change in fair value For the year ended October 31, 2019 Balance Included in Included hensive Purchases Sales Maturities/ Transfers Transfers Fair value as Change in Trading Securities NHA MBS and U.S. agency MBS and CMO 255 (46 ) 1 654 (399 ) – 159 (86 ) 538 (16 ) Corporate debt 7 – – 44 (43 ) – – (1 ) 7 – Total trading securities 262 (46 ) 1 698 (442 ) – 159 (87 ) 545 (16 ) FVTPL Securities Corporate debt – – – – – – – – – – Corporate equity 1,825 21 (2 ) 421 (280 ) (1 ) – – 1,984 58 Total FVTPL securities 1,825 21 (2 ) 421 (280 ) (1 ) – – 1,984 58 FVOCI Securities Issued or guaranteed by: U.S. states, municipalities and agencies 1 – – – – – – – 1 na Corporate debt – – – – – – – – – na Corporate equity 62 – 2 17 – – – – 81 na Total FVOCI securities 63 – 2 17 – – – – 82 na Business and Government Loans 1,450 7 8 1,410 – (1,139 ) – – 1,736 – Fair Value Liabilities Securities sold but not yet purchased – – – (7 ) 7 – – – – – Total fair value liabilities – – – (7 ) 7 – – – – – Derivative Liabilities Equity contracts 1 – – – – – – (1 ) – – Credit default swaps 1 – – – – – 1 (1 ) 1 – Total derivative liabilities 2 – – – – – 1 (2 ) 1 – (1) Foreign exchange translation on trading securities held by foreign subsidiaries is included in other comprehensive income, net foreign operations. (2) Includes proceeds recovered on securities sold but not yet purchased. (3) Changes in unrealized gains (losses) on FVTPL securities still held on October 31, 2019 are included in earnings for the year. na – not applicable Change in fair value For the year ended October 31, 2018 (Canadian $ in millions) Balance Included in Included hensive Purchases Sales Maturities/ Settlement Transfers Transfers Fair value as Change in Trading Securities NHA MBS and U.S. agency MBS and CMO – (1 ) 4 306 (54 ) – – – 255 (5 ) Corporate debt – – – 7 – – – – 7 – Total t – (1 ) 4 313 (54 ) – – – 262 (5 ) FVTPL Securities Corporate debt 73 – (4 ) 5 – – – (74 ) – – Corporate equity 1,701 12 31 307 (161 ) (2 ) – (63 ) 1,825 5 Total FVTPL securities 1,774 12 27 312 (161 ) (2 ) – (137 ) 1,825 5 FVOCI Securities Issued or guaranteed by: U.S. states, municipalities and agencies 1 – – – – – – – 1 na Corporate debt 2 – – – – (2 ) – – – na Corporate equity – – – 62 – – – – 62 na Total FVOCI securities 3 – – 62 – (2 ) – – 63 na Business and Government Loans 2,372 (2 ) 24 604 – (1,548 ) – – 1,450 – Derivative Liabilities Equity contracts – – – – – – 1 – 1 – Credit default swaps – – – – – – 1 – 1 – Total derivative liabilities – – – – – – 2 – 2 – (1) Foreign exchange translation on trading securities held by foreign subsidiaries is included in other comprehensive income, net foreign operations. (2) Changes in unrealized gains (losses) on trading securities, derivative assets and derivative liabilities still held on October 31, 2018 are included in earnings for the year. na – not applicable Trading-Related Revenue Trading assets and liabilities, including derivatives, securities and financial instruments designated at fair value through profit or loss, are measured at fair value, with gains and losses recognized in trading revenues, non-interest non-interest (Canadian $ in millions) 2019 2018 2017 Interest rates 700 437 480 Foreign exchange 401 377 369 Equities 269 449 239 Commodities 145 63 84 Other 6 95 39 Total trading revenue 1,521 1,421 1,211 Reported as: Net interest income 1,223 716 1,127 Non-interest 298 705 84 Total trading revenue 1,521 1,421 1,211 Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Offsetting of Financial Assets
Offsetting of Financial Assets and Financial Liabilities | 12 Months Ended |
Oct. 31, 2019 | |
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Offsetting of Financial Assets and Financial Liabilities | Note 18: Offsetting of Financial Assets and Financial Liabilities Financial assets and financial liabilities are offset and the net amount is reported in our Consolidated Balance Sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. The following table presents the amounts that have been offset in our Consolidated Balance Sheet, including securities purchased under resale agreements, securities sold under repurchase agreements and derivative instruments, generally under a market settlement mechanism (e.g. an exchange or clearing house) where simultaneous net settlement can be achieved to eliminate credit and liquidity risk between counterparties. Also presented are amounts not offset in the Consolidated Balance Sheet related to transactions where a master netting agreement or similar arrangement is in place with a right to offset the amounts only in the event of default, insolvency or bankruptcy, or where the offset criteria are otherwise not met. (Canadian $ in millions) 2019 Amounts not offset in the balance sheet Gross Amounts offset in Net amounts Impact of Securities Cash Net Financial Assets Securities borrowed or purchased under resale agreements 104,949 945 104,004 9,919 93,062 82 941 Derivative instruments 22,423 279 22,144 13,538 1,740 2,750 4,116 127,372 1,224 126,148 23,457 94,802 2,832 5,057 Financial Liabilities Derivative instruments 23,877 279 23,598 13,538 1,940 2,971 5,149 Securities lent or sold under repurchase agreements 87,601 945 86,656 9,919 76,501 4 232 111,478 1,224 110,254 23,457 78,441 2,975 5,381 (Canadian $ in millions) 2018 Amounts not offset in the balance sheet Gross Amounts offset in Net amounts Impact of Securities Cash Net Financial Assets Securities borrowed or purchased under resale agreements 86,635 1,584 85,051 13,516 70,479 – 1,056 Derivative instruments 25,721 299 25,422 15,575 505 3,576 5,766 112,356 1,883 110,473 29,091 70,984 3,576 6,822 Financial Liabilities Derivative instruments 23,928 299 23,629 15,575 600 1,492 5,962 Securities lent or sold under repurchase agreements 68,268 1,584 66,684 13,516 52,910 – 258 92,196 1,883 90,313 29,091 53,510 1,492 6,220 (1) Financial assets received/pledged as collateral are disclosed at fair value and are limited to the net balance sheet exposure (i.e. any over-collateralization is excluded from the table). (2) Certain amounts of collateral are restricted from being sold or repledged except in the event of default or the occurrence of other predetermined events. (3) Not intended to represent our actual exposure to credit risk. Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Capital Management
Capital Management | 12 Months Ended |
Oct. 31, 2019 | |
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Capital Management | Note 19: Capital Management Our objective is to maintain a strong capital position in a cost-effective structure that: is appropriate given our target regulatory capital ratios and internal assessment of required economic capital; underpins our operating groups’ business strategies; supports depositor, investor and regulator confidence, while building long-term shareholder value; and is consistent with our target credit ratings. Our approach includes establishing limits, targets and performance measures that are used to manage balance sheet positions, risk levels and capital requirements, as well as issuing and redeeming capital instruments to achieve a cost-effective capital structure. Regulatory capital requirements and risk-weighted assets for the consolidated entity are determined in accordance with OSFI’s Capital Adequacy Requirements Guideline. Common Equity Tier 1 (“CET1”) capital is the most permanent form of capital. It is comprised of common shareholders’ equity less deductions for goodwill, intangible assets and certain other items. Tier 1 capital is primarily comprised of CET1, preferred shares and other equity instruments, less regulatory deductions. Tier 2 capital is primarily comprised of subordinated debentures and may include certain loan loss allowances, less regulatory deductions. Total capital includes Tier 1 and Tier 2 capital. Details of the components of our capital position are presented in Notes 11, 12, 15 and 16. CET1 Capital Ratio, Tier 1 Capital Ratio, Total Capital Ratio and Leverage Ratio are the primary regulatory capital measures. • The CET1 Capital Ratio is defined as CET1 capital divided by CET1 capital risk-weighted assets. • The Tier 1 Capital Ratio is defined as Tier 1 capital divided by Tier 1 capital risk-weighted assets. • The Total Capital Ratio is defined as Total capital divided by Total capital risk-weighted assets. • The Leverage Ratio is defined as Tier 1 capital divided by the sum of on-balance off-balance As at October 31, 2019, we met OSFI’s required target capital ratios, which include a 2.5% Capital Conservation Buffer, a 1.0% Common Equity Tier 1 Surcharge for domestic systemically important banks, a Countercyclical Buffer and a 2.0% Domestic Stability Buffer. Regulatory Capital Measures, Risk-Weighted Assets and Leverage Exposures (Canadian $ in millions, except as noted) 2019 2018 Common Equity Tier 1 Capital 36,071 32,721 Tier 1 Capital 41,201 37,220 Total Capital 48,340 44,116 Common Equity Tier 1 Capital Risk-Weighted Assets 317,029 289,237 Tier 1 Capital Risk-Weighted Assets 317,029 289,420 Total Capital Risk-Weighted Assets 317,029 289,604 Leverage Exposures 956,493 876,106 Common Equity Tier 1 Capital Ratio 11.4% 11.3% Tier 1 Capital Ratio 13.0% 12.9% Total Capital Ratio 15.2% 15.2% Leverage Ratio 4.3% 4.2% |
Employee Compensation - Share-B
Employee Compensation - Share-Based Compensation | 12 Months Ended |
Oct. 31, 2019 | |
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Employee Compensation - Share-Based Compensation | Note 20: Employee Compensation – Share-Based Compensation Stock Option Plan We maintain a Stock Option Plan for designated officers and employees. Options are granted at an exercise price equal to the closing price of our common shares on the day before the grant date. Stock options granted on or after December 2013 vest in equal tranches of 50% on the third and fourth anniversaries of their grant date. Options granted prior to December 2013 vest in tranches over a four-year period starting from their grant date. Each tranche is treated as a separate award with a different vesting period. In general, options expire 10 years from their grant date. We determine the fair value of stock options on their grant date and record this amount as compensation expense over the period that the stock options vest, with a corresponding increase to contributed surplus. When these stock options are exercised, we issue shares and record the amount of proceeds, together with the amount recorded in contributed surplus, in share capital. The estimated grant date fair value of stock options granted to employees who are eligible to retire is expensed at the date of grant. The following table summarizes information about our Stock Option Plan: (Canadian $, except as noted) 2019 2018 2017 Number of Weighted- Number of Weighted- Number of Weighted- Outstanding at beginning of year 6,095,201 72.19 7,525,296 72.05 9,805,299 77.41 Granted 931,047 89.90 705,398 100.63 723,431 96.90 Exercised 902,651 60.21 1,513,307 58.40 2,233,801 57.80 Forfeited/cancelled 4,756 98.96 152,417 86.85 13,243 66.89 Expired 10,534 103.79 469,769 153.40 756,390 195.02 Outstanding at end of year 6,108,307 76.59 6,095,201 72.19 7,525,296 72.05 Exercisable at end of year 3,507,803 64.57 3,782,481 61.39 4,584,375 67.42 Available for grant 2,487,645 3,405,239 3,811,157 (1) The weighted-average exercise prices reflect the conversion of foreign currency denominated options at the exchange rate as at October 31, 2019, October 31, 2018 and October 31, 2017, respectively. For foreign currency denominated options exercised or expired during the year, the weighted-average exercise prices are translated using the exchange rates as at the settlement date and expiry date, respectively. Employee compensation expense related to this plan for the years ended October 31, 2019, 2018 and 2017 was $9 million, $7 million and $8 million before tax, respectively ($8 million, $7 million and $7 million after tax, respectively). The intrinsic value of a stock option grant is the difference between the current market price of our common shares and the strike price of the option. The aggregate intrinsic value of stock options outstanding at October 31, 2019, 2018 and 2017 was $130 million, $162 million and $232 million, respectively. The aggregate intrinsic value of stock options exercisable at October 31, 2019, 2018 and 2017 was $116 million, $140 million and $174 million, respectively. Options outstanding and exercisable at October 31, 2019 by range of exercise price were as follows: (Canadian $, except as noted) 2019 Options outstanding Options exercisable Range of exercise prices Number of Weighted- average remaining Weighted-average Number of Weighted- average remaining Weighted-average $50.01 to $60.00 1,229,196 1.7 56.42 1,229,196 1.7 56.42 $60.01 to $70.00 1,535,630 3.7 64.71 1,535,630 3.7 64.71 $70.01 to $80.00 1,082,146 5.7 77.59 741,659 5.5 77.75 $80.01 to $90.00 928,566 9.1 89.89 753 0.5 81.77 $90.01 and over (1) 1,332,769 7.6 98.81 565 0.5 99.02 (1) Certain options were issued as part of the acquisition of M&I. (2) The weighted-average exercise prices reflect the conversion of foreign currency denominated options at the exchange rate as at October 31, 2019. The following table summarizes additional information about our Stock Option Plan: (Canadian $ in millions, except as noted) 2019 2018 2017 Unrecognized compensation cost for non-vested 6 5 5 Weighted-average period over which this cost will be recognized (in years) 2.6 2.6 2.7 Total intrinsic value of stock options exercised 36 67 90 Cash proceeds from stock options exercised 54 88 129 Weighted-average share price for stock options exercised (in dollars) 99.84 102.55 98.05 The fair value of options granted was estimated using a binomial option pricing model. The weighted-average fair value of options granted during the years ended October 31, 2019, 2018 and 2017 was $10.23, $11.30 and $11.62, respectively. To determine the fair value of the stock option tranches on the grant date, the following ranges of values were used for each option pricing assumption: 2019 2018 2017 Expected dividend yield 5.7% 4.1% 4.3% Expected share price volatility 20.0% – 20.1% 17.0% – 17.3% 18.4% – 18.8% Risk-free rate of return 2.5% 2.1% 1.7% – 1.8% Expected period until exercise (in years) 6.5 – 7.0 6.5 – 7.0 6.5 – 7.0 Changes to the input assumptions can result in different fair value estimates. Expected dividend yield is based on market expectations of future dividends on our common shares. Expected share price volatility is determined based on the market consensus implied volatility for traded options on our common shares. The risk-free rate is based on the yields of a Canadian swap curve with maturities similar to the expected period until exercise of the options. The weighted-average exercise price on the grant date for the years ended October 31, 2019, 2018 and 2017 was $89.90, $100.63 and $96.90, respectively. Other Share-Based Compensation Share Purchase Plans We offer various employee share purchase plans. The largest of these plans provides employees with the option of directing a portion of their gross salary toward the purchase of our common shares. We match 50% of employee contributions up to 6% of their individual gross salary to a maximum of $100,000. Our contributions during the first two years vest after two years of participation in the plan, with subsequent contributions vesting immediately. The shares held in the employee share purchase plan are purchased on the open market and are considered outstanding for purposes of computing earnings per share. The dividends earned on our common shares held by the plan are used to purchase additional common shares on the open market. We account for our contributions as employee compensation expense when they are contributed to the plan. Employee compensation expense related to these plans for the years ended October 31, 2019, 2018 and 2017 was $54 million, $51 million and $53 million, respectively. There were 18.0 million, 17.8 million and 18.3 million common shares held in these plans for the years ended October 31, 2019, 2018 and 2017, respectively. Compensation Trusts We sponsor various share ownership arrangements, certain of which are administered through trusts into which our matching contributions are paid. We are not required to consolidate our compensation trusts. The assets held by the trusts are not included in our consolidated financial statements. Total assets held under our share ownership arrangements amounted to $1,752 million as at October 31, 2019 ($1,752 million in 2018). Mid-Term We offer mid-term Mid-term Prior to 2015, we entered into agreements with third parties to assume our liabilities related to a portion of units granted for a fixed up-front related to these awards. All cash payments made under such arrangements are deferred in the Consolidated Balance Sheet as other assets and are recognized on a straight-line basis over the vesting period. Subsequent changes in the market value of our common shares do not affect the amount of compensation expense related to these awards. During the year ended October 31, 2017, all remaining deferred compensation related to these arrangements was recognized. Employee compensation expense related to plans where we entered into agreements with third parties for the years ended October 31, 2019, 2018 and 2017 was $ nil, $nil and $(7) million before tax, respectively ($nil, $nil and $(5) million after tax, respectively). Mid-term A total of 17.2 million, 17.1 million and 17.0 million mid-term Deferred Incentive Plans We offer deferred incentive plans for members of our Board of Directors, executives and key employees in BMO Capital Markets and Wealth Management. Under these plans, fees, annual incentive payments and/or commissions can be deferred as share units of our common shares. These share units are either fully vested on the grant date or vest at the end of three years. The value of these share units is adjusted to reflect reinvested dividends and changes in the market value of our common shares. Deferred incentive plan payments are paid in cash upon the participant’s departure from the bank. Employee compensation expense for these plans is recorded in the year the fees, incentive payments and/or commissions are earned. Changes in the amount of the incentive plan payments as a result of dividends and share price movements are recorded as increases or decreases in employee compensation expense in the period of the change. Deferred incentive plan units granted during the years ended October 31, 2019, 2018 and 2017 totalled 0.3 million, 0.3 million and 0.3 million, respectively, and the grant date fair value of these units was $32 million, $33 million and $32 million, respectively. Liabilities related to these plans are recorded in other liabilities in our Consolidated Balance Sheet and totalled $478 million and $485 million as at October 31, 2019 and 2018, respectively. Payments made under these plans for the years ended October 31, 2019, 2018 and 2017 were $59 million, $60 million and $32 million, respectively. Employee compensation expense related to these plans for the years ended October 31, 2019, 2018 and 2017 was $17 million, $27 million and $91 million before tax, respectively ($12 million, $20 million and $67 million after tax, respectively). We have entered into derivative instruments to hedge our exposure related to these plans. Changes in the fair value of these derivatives are recorded as employee compensation expense in the period in which they arise. Gains on these derivatives recognized for the years ended October 31, 2019, 2018 and 2017 were $4 million, $8 million and $78 million before tax, respectively. These gains resulted in net employee compensation expense for the years ended October 31, 2019, 2018 and 2017 of $13 million, $19 million and $13 million before tax, respectively ($10 million, $14 million and $10 million after tax, respectively). A total of 4.8 million, 4.9 million and 5.0 million deferred incentive plan units were outstanding as at October 31, 2019, 2018 and 2017, respectively. |
Employee Compensation - Pension
Employee Compensation - Pension and Other Employee Future Benefits | 12 Months Ended |
Oct. 31, 2019 | |
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Employee Compensation - Pension and Other Employee Future Benefits | Note 21: Employee Compensation – Pension and Other Employee Future Benefits Pension and Other Employee Future Benefit Plans We sponsor a number of arrangements globally that provide pension and other employee future benefits to our retired and current employees. The largest of these arrangements, by defined benefit obligation, are the primary defined benefit pension plans for employees in Canada and the United States and the primary other employee future benefit plan for employees in Canada. Pension arrangements include defined benefit pension plans, as well as supplementary arrangements that provide pension benefits in excess of statutory limits. Generally, under these plans we provide retirement benefits based on an employee’s years of service and average annual earnings over a period of time prior to retirement. Our pension and other employee future benefit expenses, recorded in employee compensation expense, mainly comprise the current service cost plus or minus the interest on net defined benefit assets or liabilities. In addition, we provide defined contribution pension plans to employees in some of our subsidiaries. The costs of these plans, recorded in employee compensation expense, are equal to our contributions to the plans. During the year ended October 31, 2018, we announced changes to our other employee future benefit plan for Canadian employees that will become mandatory for new retirees beginning January 1, 2021. Plan changes include an increase in the service requirement for eligibility and flexible benefits with employer premium caps. In 2018, we recorded a $277 million benefit from the remeasurement of the benefit liability in non-interest We also provide other employee future benefits, including health and dental care benefits and life insurance, for eligible current and retired employees. Short-term employee benefits, such as salaries, paid absences, bonuses and other benefits, are accounted for on an accrual basis over the period in which the employees provide the related services. Investment Policy The defined benefit pension plans are administered under a defined governance structure, with oversight resting with the Board of Directors. The plans are managed under a framework that considers both assets and liabilities in the development of an investment policy and in managing risk. Over the past several years, we have implemented a liability-driven investment strategy for the primary Canadian plan to enhance risk-adjusted returns while reducing the plan’s surplus volatility. This strategy has reduced the impact of the plan on our regulatory capital. The plans invest in asset classes that include equities, fixed income and alternative strategies, under established investment guidelines. Plan assets are diversified across asset classes and by geographic exposure. They are managed by asset management firms that are responsible for the selection of investment securities. Derivative instruments are permitted under policy guidelines and are generally used to hedge foreign currency exposures, manage interest rate exposures or replicate the return of an asset. Asset Allocations The asset allocation ranges and weighted-average actual asset allocations of our primary pension plans, based on fair market values at October 31, are as follows: Pension benefit plans Target range Actual 2019 Actual 2018 Equities 20% – 50% 32% 37% Fixed income investments 25% – 55% 51% 46% Alternative strategies 15% – 45% 17% 17% Our pension and other employee future benefit plan assets are measured at fair value on a recurring basis. Risk Management The defined benefit pension plans are exposed to various risks, including market risk (interest rate, equity and foreign currency risks), credit risk, operational risk, surplus risk and longevity risk. We follow a number of approaches to monitor and actively manage these risks, including: • monitoring surplus-at-risk, • stress testing and scenario analyses to evaluate the volatility of the plans’ financial positions and any potential impact on the bank; • hedging of currency exposures and interest rate risk within policy limits; • controls related to asset mix allocations, geographic allocations, portfolio duration, credit quality of debt securities, sector guidelines, issuer/counterparty limits and others; and • ongoing monitoring of exposures, performance and risk levels. Pension and Other Employee Future Benefit Liabilities Our actuaries perform valuations of our defined benefit obligations for pension and other employee future benefits as at October 31 of each year using the projected unit credit method based on management’s assumptions about discount rates, rates of compensation increase, retirement age, mortality and health care cost trend rates. The discount rates for the primary Canadian and U.S. pension and other employee future benefit plans were selected based on the yields of high-quality AA rated corporate bonds with terms matching the plans’ cash flows. The fair value of plan assets is deducted from the defined benefit obligation to determine the net defined benefit asset or liability. For defined benefit pension plans that are in a net defined benefit asset position, the recognized asset is limited to the present value of economic benefits available in the form of future refunds from the plan or reductions in future contributions to the plan (the “asset ceiling”). Changes in the asset ceiling are recognized in other comprehensive income. Components of the change in our net defined benefit assets or liabilities and our pension and other employee future benefit expense are as follows: Current service cost Interest on net defined benefit asset or liability Actuarial gains and losses Plan amendments Settlements Funding of Pension and Other Employee Future Benefit Plans We fund our defined benefit pension plans in Canada and the United States in accordance with statutory requirements, and the assets in these plans are used to pay benefits to retirees and other employees. Some groups of employees are also eligible to make voluntary contributions in order to receive enhanced benefits. Our supplementary pension plan in Canada is funded, while the supplementary pension plan in the U.S. is unfunded. Our other employee future benefit plans in Canada and the United States are either funded or unfunded. Benefit payments related to these plans are paid either through the respective plan or directly by us. We measure the fair value of plan assets for our plans in Canada and the United States as at October 31. In addition to actuarial valuations for accounting purposes, we are required to prepare valuations for determining our minimum funding requirements for our pension arrangem A summary of plan information for the past three years is as follows: (Canadian $ in millions) Pension benefit plans Other employee future benefit plans 2019 2018 2017 2019 2018 2017 Defined benefit obligation 9,866 8,311 8,846 1,254 1,113 1,460 Fair value of plan assets 9,723 8,719 8,990 175 153 157 Surplus (deficit) and net defined benefit asset (liability) (143 ) 408 144 (1,079 ) (960 ) (1,303 ) Surplus (deficit) is comprised of: Funded or partially funded plans 36 573 339 46 37 28 Unfunded plans (179 ) (165 ) (195 ) (1,125 ) (997 ) (1,331 ) Surplus (deficit) and net defined benefit asset (liability) (143 ) 408 144 (1,079 ) (960 ) (1,303 ) Pension and Other Employee Future Benefit Expenses Pension and other employee future benefit expenses are determined as follows: (Canadian $ in millions) Pension benefit plans Other employee future benefit plans 2019 2018 2017 2019 2018 2017 Annual benefits expense Current service cost 193 210 254 9 26 32 Net interest (income) expense on net defined benefit (asset) liability (20 ) (10 ) 7 37 45 47 Past service cost (income) (5 ) 7 – – (277 ) – Administrative expenses 5 5 5 – – – Remeasurement of other long-term benefits – – – 6 (10 ) (6 ) Benefits expense 173 212 266 52 (216 ) 73 Canada and Quebec pension plan expense 82 76 75 – – – Defined contribution expense 170 153 123 – – – Total annual pension and other employee future benefit expenses recognized in the Consolidated Statement of Income 425 441 464 52 (216 ) 73 Weighted-Average Assumptions Pension benefit plans Other employee future benefit plans 2019 2018 2017 2019 2018 2017 Defined Benefit Expenses Discount rate at beginning of year (3)(4) 4.0% 3.5% 3.4% 4.1% 3.6% 3.6% Rate of compensation increase 2.4% 2.4% 2.8% 2.0% 2.0% 2.4% Assumed overall health care cost trend rate na na na 4.9% (1) 4.9% (1) 5.2% (2) Defined Benefit Obligation Discount rate at end of year 3.0% 4.0% 3.5% 3.0% 4.1% 3.6% Rate of compensation increase 2.1% 2.4% 2.4% 2.0% 2.0% 2.0% Assumed overall health care cost trend rate na na na 4.9% (1) 4.9% (1) 5.2% (2) (1) Trending to 4.1% in 2040 and remaining at that level thereafter. (2) Trending to 4.5% in 2031 and remaining at that level thereafter. (3) The pension benefit current service cost was calculated using a separate discount rate of 4.10%, 3.70% and 3.68% for 2019, 2018 and 2017, respectively. (4) The other employee future benefit plans current service cost was calculated using a separate discount rate of 4.20%, 3.76% and 3.78% for 2019, 2018 and 2017, respectively. na – not applicable Assumptions regarding future mortality are based on published statistics and mortality tables calibrated to plan experience, when applicable. The current life expectancies underlying the amounts of the defined benefit obligations for our primary plans are as follows: (Years) Canada United States 2019 2018 2019 2018 Life expectancy for those currently age 65 Males 23.7 23.7 21.7 21.9 Females 24.1 24.0 23.0 23.4 Life expectancy at age 65 for those currently age 45 Males 24.7 24.6 22.8 23.1 Females 25.0 25.0 24.2 24.5 Changes in the estimated financial positions of our defined benefit pension plans and other employee future benefit plans are as follows: (Canadian $ in millions, except as noted) Pension benefit plans Other employee future benefit plans 2019 2018 2019 2018 Defined benefit obligation Defined benefit obligation at beginning of year 8,311 8,846 1,113 1,460 U.S. plan merger (1) 46 – – – Current service cost 193 210 9 26 Past service cost (income) (5 ) 7 – (277 ) Interest cost 324 299 44 51 Benefits paid (456 ) (492 ) (53 ) (43 ) Employee contributions 17 15 5 5 Actuarial (gains) losses due to: Changes in demographic assumptions (9 ) (50 ) (22 ) (31 ) Changes in financial assumptions 1,345 (562 ) 161 (77 ) Plan member experience 92 16 (3 ) (4 ) Foreign exchange and other 8 22 – 3 Defined benefit obligation at end of year 9,866 8,311 1,254 1,113 Wholly or partially funded defined benefit obligation 9,687 8,146 129 116 Unfunded defined benefit obligation 179 165 1,125 997 Total defined benefit obligation 9,866 8,311 1,254 1,113 Fair value of plan assets Fair value of plan assets at beginning of year 8,719 8,990 153 157 U.S. plan merger (1) 43 – – – Interest income 344 309 7 6 Return on plan assets (excluding interest income) 795 (323 ) 23 (10 ) Employer contributions 256 213 40 35 Employee contributions 17 15 5 5 Benefits paid (456 ) (492 ) (53 ) (43 ) Administrative expenses (5 ) (5 ) – – Foreign exchange and other 10 12 – 3 Fair value of plan assets at end of year 9,723 8,719 175 153 Surplus (deficit) and net defined benefit asset (liability) at end of year (143 ) 408 (1,079 ) (960 ) Recorded in: Other assets 186 664 46 – Other liabilities (329 ) (256 ) (1,125 ) (960 ) Surplus (deficit) and net defined benefit asset (liability) at end of year (143 ) 408 (1,079 ) (960 ) Actuarial gains (losses) recognized in other comprehensive income Net actuarial gains (losses) on plan assets 795 (323 ) 23 (10 ) Actuarial gains (losses) on defined benefit obligation due to: Changes in demographic assumptions 9 50 21 30 Changes in financial assumptions (1,345 ) 562 (153 ) 72 Plan member experience (92 ) (16 ) 3 1 Foreign exchange and other (9 ) 6 – – Actuarial gains (losses) recognized in other comprehensive income for the year (642 ) 279 (106 ) 93 (1) In 2019, the benefit obligation and assets related to employees formerly included in a multi-employer plan, which was accounted for as a defined contribution plan, merged with the U.S. defined benefit pension plan. The impact of the merger was recognized as a remeasurement of the U.S. defined benefit pension plan. Our pension and other employee future benefit plan assets are measured at fair value on a recurring basis. The fair values of plan assets held by our primary plans as at October 31 are as follows: (Canadian $ in millions) 2019 2018 Quoted Unquoted Total Quoted Unquoted Total Cash and money market funds 156 6 162 114 – 114 Securities issued or guaranteed by: Canadian federal government 1 57 58 108 41 149 Canadian provincial and municipal governments 334 368 702 219 309 528 U.S. federal government 345 – 345 297 – 297 U.S. states, municipalities and agencies – – – – 12 12 Pooled funds 1,450 3,204 4,654 1,591 2,715 4,306 Derivative instruments – 8 8 1 (14 ) (13 ) Corporate debt – 1,354 1,354 6 1,055 1,061 Corporate equity 1,219 – 1,219 1,105 – 1,105 3,505 4,997 8,502 3,441 4,118 7,559 No plan assets are directly invested in the bank’s or related parties’ securities as at October 31, 2019 and 2018. As at October 31, 2019, our primary Canadian plan indirectly held, through pooled funds, approximately $10 million ($15 million in 2018) of our common shares and fixed income securities. The plans do not hold any property we occupy or other assets we use. The plans paid $3 million in the year ended October 31, 2019 ($4 million in 2018) to the bank and certain of our subsidiaries for investment management, record-keeping, custodial and administrative services rendered. Sensitivity of Assumptions Key weighted-average assumptions used in measuring the defined benefit obligations for our primary plans are outlined in the following table. The sensitivity analysis provided in the table should be used with caution, as it is hypothetical and the impact of changes in each key assumption may not be linear. The sensitivities to changes in each key variable have been calculated independently of the impact of changes in other key variables. Actual experience may result in simultaneous changes in a number of key assumptions, which would amplify or reduce certain sensitivities. Defined benefit obligation (Canadian $ in millions, except as noted) Pension benefit plans Other employee future benefit plans Discount rate (%) 3.0 3.0 Impact of: 1% increase ($) (1,041 ) (122 ) 1% decrease ($) 1,324 153 Rate of compensation increase (%) 2.1 2.0 Impact of: 0.25% increase ($) 51 – (1) 0.25% decrease ($) (49 ) – (1) Mortality Impact of: 1 year shorter life expectancy ($) (185 ) (28 ) 1 year longer life expectancy ($) 182 29 Assumed overall health care cost trend rate (%) na 4.9 (2) Impact of: 1% increase ($) na 49 1% decrease ($) na (51 ) (1) The change in this assumption is immaterial. (2) Trending to 4.1% in 2040 and remaining at that level thereafter. na – not applicable Maturity Profile The duration of the defined benefit obligation for our primary plans is as follows: (Years) 2019 2018 Canadian pension plans 15.2 14.0 U.S. pension plans 7.9 7.2 Canadian other employee future benefit plans 14.5 14.3 Cash Flows Cash payments we made during the year in connection with our employee future benefit plans are as follows: (Canadian $ in millions) Pension benefit plans Other employee future benefit plans 2019 2018 2017 2019 2018 2017 Contributions to defined benefit plans 203 154 187 – – – Contributions to defined contribution plans 170 153 123 – – – Benefits paid directly to pensioners 53 59 32 40 35 40 426 366 342 40 35 40 Our best estimate of the contributions and benefits paid directly to pensioners we expect to make for the year ending October 31, 2020 is approximately $277 million to our defined benefit pension plans and $43 million to our other employee future benefit plans. Benefit payments for fiscal 2020 are estimated to be $536 million. |
Income Taxes
Income Taxes | 12 Months Ended |
Oct. 31, 2019 | |
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Income Taxes | Note 22: Income Taxes We report our provision for income taxes in our Consolidated Statement of Income based upon transactions recorded in our consolidated financial statements regardless of when they are recognized for income tax purposes, with the exception of repatriation of retained earnings from our subsidiaries, as noted below. In addition, we record an income tax expense or benefit in other comprehensive income or directly in equity when the taxes relate to amounts recorded in other comprehensive income or equity. For example, income tax expense (recovery) on hedging gains (losses) related to our net investment in foreign operations is recorded in our Consolidated Statement of Comprehensive Income as part of n t Current tax is the amount of income tax recoverable (payable) in respect of the taxable loss (profit) for a period. Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities for accounting and tax purposes. Deferred income tax assets and liabilities are measured at the tax rates expected to apply when temporary differences reverse. Changes in deferred income tax assets and liabilities related to a change in tax rates are recorded in income in the period the tax rate is substantively enacted, except to the extent that the tax arises from a transaction or event which is recognized either in other comprehensive income or directly in equity. Current and deferred taxes are offset only when they are levied by the same tax authority, on the same entity or group of entities, and when there is a legal right to offset. Included in deferred income tax assets is $26 million ($42 million in 2018) related to Canadian tax loss carryforwards that will expire in 2037, $289 million ($962 million in 2018) related to both U.S. tax loss carryforwards and tax credits that will expire in various amounts in U.S. taxation years from 2020 through 2039 and $19 million ($17 million in 2018) related to United Kingdom (U.K.) tax loss carryforwards that are available for use indefinitely against relevant profits generated in the U.K. On the evidence available, including management projections of income, we believe that it is probable there will be sufficient taxable income generated by our business operations to support these deferred tax assets. The amount of tax on temporary differences, unused tax losses and unused tax credits for which no deferred tax asset is recognized in our Consolidated Balance Sheet as at October 31, 2019 is $127 million ($132 million in 2018), of which $3 million ($8 million in 2018) is scheduled to expire within five years. Deferred tax assets have not been recognized in respect of these items because it is not probable that these assets will be realized. Income that we earn through our foreign subsidiaries is generally taxed in the foreign country in which they operate. Income that we earn through our foreign branches is also generally taxed in the foreign country in which they operate. Canada also taxes the income we earn through foreign branches and a credit is allowed for certain foreign taxes paid on such income. Repatriation of earnings from certain foreign subsidiaries would require us to pay tax on certain of these earnings. As repatriation of such earnings is not planned in the foreseeable future, we have not recorded a related deferred income tax liability. The taxable temporary differences associated with the repatriation of earnings from investments in certain subsidiaries, branches, associates and interests in joint ventures for which deferred tax liabilities have not been recognized totalled $15 billion as at October 31, 2019 ($13 billion in 2018). Provision for Income Taxes (Canadian $ in millions) 2019 2018 2017 Consolidated Statement of Income Current Provision for income taxes for the current period 1,198 1,340 1,159 Adjustments in respect of current tax for prior periods (14 ) 20 18 Deferred Origination and reversal of temporary differences 327 268 171 Effect of changes in tax rates 3 425 (2 ) Previously unrecognized tax loss, tax credit or temporary difference for a prior period – (92 ) (54 ) 1,514 1,961 1,292 Other Comprehensive Income and Equity Income tax expense (recovery) related to: Unrealized gains (losses) on FVOCI debt securities (1) 140 (69 ) 21 Reclassification to earnings of (gains) on FVOCI debt securities (1) (26 ) (23 ) (36 ) Gains (losses) on derivatives designated as cash flow hedges 521 (432 ) (322 ) Reclassification to earnings of losses on derivatives designated as cash flow hedges 51 121 21 Hedging of unrealized (gains) losses on translation of net foreign operations (4 ) (56 ) 8 Gains (losses) on remeasurement of pension and other employee future benefit plans (196 ) 111 157 Gains (Losses) on remeasurement of own credit risk on financial liabilities designated at fair value 27 (6 ) (53 ) Unrealized gains on FVOCI equity securities 1 – na Share-based compensation – 10 (12 ) 514 (344 ) (216 ) Total provision for income taxes 2,028 1,617 1,076 (1) Fiscal 2017 represents available-for-sale na – not applicable due to IFRS 9 adoption. Certain comparative figures have been reclassified to conform with the current year’s presentation. Components of Total Provision for Income Taxes (Canadian $ in millions) 2019 2018 2017 Canada: Current income taxes Federal 791 501 470 Provincial 465 299 272 1,256 800 742 Canada: Deferred income taxes Federal (113 ) (44 ) (2 ) Provincial (66 ) (27 ) – (179 ) (71 ) (2 ) Total Canadian 1,077 729 740 Foreign: Current income taxes 308 233 186 Deferred income taxes 643 655 150 Total foreign 951 888 336 Total provision for income taxes 2,028 1,617 1,076 Certain comparative figures have been reclassified to conform with the current year’s presentation. Set out below is a reconciliation of our statutory tax rates and income taxes that would be payable at these rates to the effective income tax rates and provision for income taxes that we have recorded in our Consolidated Statement of Income: (Canadian $ in millions, except as noted) 2019 2018 2017 Combined Canadian federal and provincial income taxes at the statutory tax rate 1,934 26.6 % 1,972 26.6 % 1,764 26.6 % Increase (decrease) resulting from: Tax-exempt (220 ) (3.0 ) (226 ) (3.0 ) (409 ) (6.2 ) Foreign operations subject to different tax rates (158 ) (2.2 ) (110 ) (1.5 ) 22 0.3 Change in tax rate for deferred income taxes 3 – 425 5.7 (2 ) – Previously unrecognized tax loss, tax credit or temporary difference for a prior period – – (92 ) (1.2 ) (54 ) (0.8 ) Income attributable to investments in associates and joint ventures (37 ) (0.5 ) (39 ) (0.5 ) (103 ) (1.5 ) Adjustments in respect of current tax for prior periods (14 ) (0.2 ) 20 0.3 18 0.2 Other 6 0.1 11 0.1 56 0.9 Provision for income taxes in the Consolidated Statement of Income and effective tax rate 1,514 20.8 % 1,961 26.5 % 1,292 19.5 % Components of Deferred Income Tax Balances (Canadian $ in millions) Deferred Income Tax Asset (Liability) (1) Net asset, Benefit (expense) Benefit (expense) Translation Net asset, Allowance for credit losses 484 23 – 4 511 Employee future benefits 282 12 31 – 325 Deferred compensation benefits 494 (12 ) – 1 483 Other comprehensive income 195 – (331 ) (7 ) (143 ) Tax loss carryforwards 606 (462 ) – 1 145 Tax credits 415 (228 ) – 2 189 Premises and equipment (515 ) 234 – (1 ) (282 ) Pension benefits (121 ) (18 ) 166 – 27 Goodwill and intangible assets (201 ) (14 ) – (2 ) (217 ) Securities 38 12 – – 50 Other 288 123 – 9 420 Total 1,965 (330 ) (134 ) 7 1,508 (Canadian $ in millions) Deferred Income Tax Asset (Liability) (1) Net asset, Benefit (expense) Benefit (expense) Translation Net asset, Allowance for credit losses 684 (150 ) – (50 ) 484 Employee future benefits 416 (111 ) (23 ) – 282 Deferred compensation benefits 545 (50 ) – (1 ) 494 Other comprehensive income 50 – 138 7 195 Tax loss carryforwards 1,233 (628 ) – 1 606 Tax credits 454 (39 ) – – 415 Premises and equipment (664 ) 148 – 1 (515 ) Pension benefits (52 ) 19 (88 ) – (121 ) Goodwill and intangible assets (261 ) 60 – – (201 ) Securities 21 17 – – 38 Other 180 133 (10 ) (15 ) 288 Total 2,606 (601 ) 17 (57 ) 1,965 (1) Deferred tax assets of $1,568 million and $2,039 million and deferred tax liabilities of $60 million and $74 million as at October 31, 2019 and 2018, respectively, are presented on the balance sheet net by legal jurisdiction. (2) Includes IFRS 9 adoption (refer to Note 28). Certain comparative figures have been reclassified to conform with the current year’s presentation. In fiscal 2019, we were reassessed by the Canada Revenue Agency (``CRA``) for additional income taxes and interest in an amount of approximately $250 million in respect of certain 2014 Canadian corporate dividends. In prior fiscal years, we were reassessed for additional income taxes and interest of approximately $361 million, for certain 2011 to 2013 Canadian corporate dividends. In its reassessments, the CRA denied dividend deductions on the basis that the dividends were received as part of a “dividend rental arrangement.” The tax rules raised by the CRA in the reassessments were prospectively addressed in the 2015 and 2018 Canadian federal budgets. In the future, we expect to be reassessed for significant income tax for similar activities in 2015 and subsequent years. We remain of the view that our tax filing positions were appropriate and intend to challenge any reassessment. On December 22, 2017, the U.S. government enacted new tax legislation that became effective on January 1, 2018. Under the new legislation, our U.S. net deferred tax asset was revalued by $483 million because of the lower income tax rate. The $483 million revaluation is comprised of a $425 million income tax expense recorded in our Consolidated Statement of Income, and a $58 million income tax charge recorded in other comprehensive income and equity for the year ended October 31, 2018. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Oct. 31, 2019 | |
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Earnings Per Share | Note 23: Earnings Per Share Basic earnings per share is calculated by dividing net income attributable to equity holders of the bank, after deducting dividends on preferred shares and distributions on other equity instruments, by the daily average number of fully paid common shares outstanding throughout the year. Diluted earnings per share is calculated in the same manner, with further adjustments made to reflect the dilutive impact of instruments convertible into our common shares. The following table presents our basic and diluted earnings per share: Basic Earnings Per Common Share (Canadian $ in millions, except as noted) 2019 2018 2017 Net income attributable to equity holders of the bank 5,758 5,453 5,337 Dividends on preferred shares and distributions on other equity instruments (211 ) (184 ) (184 ) Net income available to common shareholders 5,547 5,269 5,153 Weighted-average number of common shares outstanding (in thousands) 638,881 642,930 649,650 Basic earnings per common share (Canadian $) 8.68 8.19 7.93 Diluted Earnings Per Common Share Net income available to common shareholders adjusted for impact of dilutive instruments 5,547 5,269 5,153 Weighted-average number of common shares outstanding (in thousands) 638,881 642,930 649,650 Effect of dilutive instruments Stock options potentially exercisable (1) 5,326 5,876 6,859 Common shares potentially repurchased (3,847 ) (3,893 ) (4,548 ) Weighted-average number of diluted common shares outstanding (in thousands) 640,360 644,913 651,961 Diluted earnings per common share (Canadian $) 8.66 8.17 7.90 (1) In computing diluted earnings per share, we excluded average stock options outstanding of 1,177,152, 1,101,938 and 1,330,564 with weighted-average exercise prices of $101.83, $127.45 and $182.70 for the years ended October 31, 2019, 2018 and 2017, respectively, as the average share price for the period did not exceed the exercise price. Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Commitments, Guarantees, Pledge
Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities | 12 Months Ended |
Oct. 31, 2019 | |
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Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities | Note 24: Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities In the normal course of business, we enter into a variety of contracts under which we may be required to make payments to reimburse a counterparty for a loss if a third party does not perform according to the terms of a contract or does not make payments when due under the terms of a debt instrument, and contracts under which we provide indirect guarantees of the indebtedness of another party, all of which are considered guarantees. Guarantees that qualify as derivatives are accounted for in accordance with the policy for derivative instruments (see Note 8). For guarantees that do not qualify as derivatives, the liability is initially recorded at fair value, which is generally the fee received. Subsequently, guarantees are recorded at the higher of the initial fair value, less amortization to recognize any fee income earned over the period, and our best estimate of the amount required to settle the obligation. Any change in the liability is reported in our Consolidated Statement of Income. We enter into a variety of commitments, including off-balance A large majority of these commitments expire without being drawn upon. As a result, the total contractual amounts may not be representative of the funding likely to be required for these commitments. We strive to limit credit risk by dealing only with counterparties that we believe are creditworthy, and we manage our credit risk for these instruments using the same credit risk process that is applied to loans and other credit assets. The maximum amount payable related to our various commitments is as follows: (Canadian $ in millions) 2019 2018 Financial Guarantees Standby letters of credit 21,395 18,458 Credit default swaps (1) 2,068 443 Other Credit Instruments Backstop liquidity facilities 5,550 5,627 Securities lending 4,102 4,939 Documentary and commercial letters of credit 1,272 1,263 Commitments to extend credit (2) 158,533 137,995 Other commitments 5,181 8,935 Total 198,101 177,660 (1) The fair value of the related derivatives included in our Consolidated Balance Sheet was $43 million as at October 31, 2019 ($8 million in 2018). (2) Commitments to extend credit exclude personal lines of credit and credit cards that are unconditionally cancellable at our discretion. Financial Guarantees Standby letters of credit represent our obligation to make payments to third parties on behalf of customers if they are unable to make the required payments or meet other contractual requirements. The majority have a term of one year or less. Collateral requirements for standby letters of credit and guarantees are consistent with our collateral requirements for loans. Standby letters of credit and guarantees include our guarantee of a subsidiary’s debt directly provided to a third party. Written credit default swaps require us to compensate a counterparty following the occurrence of a credit event in relation to a specified reference obligation, such as a bond or a loan. The terms of these contracts range from less than one year to 10 years. Refer to Note 8 for details. Other Credit Instruments Backstop liquidity facilities are provided to asset-backed commercial paper (“ABCP”) programs administered by either us or third parties as an alternative source of financing when ABCP markets cannot be accessed. The terms of the backstop liquidity facilities do not require us to advance money to these programs in the event of insolvency of the borrower and generally do not require us to advance money against non-performing or defaulted assets. The average term of these liquidity facilities is approximately 2 years. We lend eligible customers’ securities to third-party borrowers who have been evaluated for credit risk using the same credit risk process that is applied to loans and other credit assets. In connection with these activities, we may provide indemnification to clients against losses resulting from the failure of the borrower to return loaned securities when due. All borrowings are fully collateralized with cash or marketable securities. As securities are loaned, we require borrowers to maintain collateral that is equal to or in excess of 100% of the fair value of the securities borrowed. The collateral is revalued on a daily basis. Documentary and commercial letters of credit represent our agreement to honour drafts presented by a third party upon completion of specific activities. Commitments to extend credit represent our commitment to our customers to grant them credit in the form of loans or other financings for specific amounts and maturities, subject to their meeting certain conditions. Other commitments include commitments to fund external private equity funds and investments in equity and debt securities at market value at the time the commitments are drawn. In addition, we act as underwriter for certain new issuances under which we, alone or together with a syndicate of financial institutions, purchase the new issue for resale to investors. Indemnification Agreements In the normal course of operations, we enter into various agreements that provide general indemnifications. These indemnifications typically occur in connection with sales of assets, securities offerings, service contracts, membership agreements, clearing arrangements, derivative contracts and leasing transactions. Based on historical experience, we expect the risk of loss to be remote. Exchange and Clearinghouse Guarantees We are a member of several securities and futures exchanges and central counterparties. Membership in certain of these organizations may require us to pay a pro rata share of the losses incurred by the organization in the event of default of another member. It is difficult to estimate our maximum exposure under these membership agreements, since this would require an assessment of future claims that may be made against us that have not yet occurred. Based on historical experience, we expect the risk of loss to be remote. Pledged Assets In the normal course of business, we pledge assets as security for various liabilities that we incur. The following tables summarize our pledged assets and collateral, and the activities to which they relate: (Canadian $ in millions) 2019 2018 Bank Assets Cash and securities (1) Issued or guaranteed by the Government of Canada 5,633 7,784 Issued or guaranteed by a Canadian province, municipality or school corporation 5,465 7,143 Other 75,076 60,812 Mortgages, securities borrowed or purchased under resale agreements and other 125,035 115,256 211,209 190,995 (Canadian $ in millions) 2019 2018 Assets pledged in relation to: Central counterparties, payment systems and depositories 2,098 2,403 Bank of Canada 467 525 Foreign governments and central banks 3 3 Obligations related to securities sold under repurchase agreements 73,696 54,606 Securities borrowing and lending 48,892 50,388 Derivatives transactions 9,614 6,120 Securitization 30,120 28,710 Covered bonds 27,208 26,721 Other 19,111 21,519 Total pledged assets and collateral (1) 211,209 190,995 (1) Excludes cash pledged with central banks disclosed as restricted cash in Note 2. Collateral When entering into trading activities, such as purchases under resale agreements, securities borrowing and lending activities or financing for certain derivative transactions, we require our counterparties to provide us with collateral that will protect us from losses in the event of their default. Collateral transactions (received or pledged) are typically conducted under terms that are usual and customary in standard trading activities. If there is no default, the securities or their equivalents must be returned to, or returned by, the counterparty at the end of the contract. The fair value of counterparty collateral that we are permitted to sell or repledge (in the absence of default by the owner of the collateral) was $163,929 million as at October 31, 2019 ($123,782 million as at October 31, 2018). The fair value of collateral that we have sold or repledged was $101,665 million as at October 31, 2019 ($82,392 million as at October 31, 2018). Lease Commitments We have entered into a number of non-cancellable Provisions and Contingent Liabilities Provisions are recognized when we have a legal or constructive obligation as a result of past events, such as contractual commitments, legal or other obligations for which we can reliably estimate the obligation, and it is probable we will be required to settle the obligation. We recognize as a provision our best estimate of the amount required to settle the obligations as of the balance sheet date, taking into account the risks and uncertainties surrounding the obligations. Provisions are recorded in other liabilities on the Consolidated Balance Sheet. Contingent liabilities are potential obligations arising from past events, the existence of which will only be confirmed by the occurrence or non-occurrence of one or more future events not wholly within our control, and are not included in the table below. Restructuring Charges Provisions for restructuring charges as at October 31, 2019 are $603 million ($176 million as at October 31, 2018), which includes $484 million related to severance and a small amount of real estate-related costs, to continue to improve efficiency, including accelerating delivery against key bank-wide initiatives focused on digitization, organizational redesign and simplification of the way we do our business. This represents our best estimate of the amount that will ultimately be paid out. Legal Proceedings The bank and its subsidiaries are party to legal proceedings, including regulatory investigations, in the ordinary course of business. While there is inherent difficulty in predicting the outcome of these proceedings, management does not expect the outcome of any of these proceedings, individually or in the aggregate, to have a material adverse effect on the consolidated financial position or the results of operations of the bank. Changes in the provision balance during the year were as follows: (Canadian $ in millions) 2019 2018 Balance at beginning of year 284 170 Additional provisions/increase in provisions 666 375 Provisions utilized (251 ) (250 ) Amounts reversed (32 ) (11 ) Foreign exchange and other 13 – Balance at end of year (1) 680 284 (1) Balance includes severance obligations, restructuring charges and legal provisions. |
Operating and Geographic Segmen
Operating and Geographic Segmentation | 12 Months Ended |
Oct. 31, 2019 | |
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Operating and Geographic Segmentation | Note 25: Operating and Geographic Segmentation Operating Groups We conduct our business through three operating groups, each of which has a distinct mandate. We determine our operating groups based on our management structure and therefore these groups, and the results attributed to them, may not be comparable with those of other financial services companies. We evaluate the performance of our groups using reported and adjusted measures, such as net income, revenue growth, return on equity, and non-interest expense-to-revenue Effective with the adoption of IFRS 9, we allocate the provision for credit losses on performing loans and the related allowance to operating groups. In 2017 and prior years, the collective provision and allowance were held in Corporate Services. Personal and Commercial Banking Personal and Commercial Banking (“P&C”) is comprised of two operating segments: Canadian Personal and Commercial Banking and U.S. Personal and Commercial Banking. Canadian Personal and Commercial Banking Canadian Personal and Commercial Banking (“Canadian P&C”) provides a full range of financial products and services to eight million customers. Personal Banking provides financial solutions for everyday banking, financing, investing, credit card and creditor insurance needs. Commercial Banking provides our small business and commercial banking customers with a broad suite of integrated commercial and capital markets products, as well as financial advisory services. U.S. Personal and Commercial Banking U.S. Personal and Commercial Banking (“U.S. P&C”) offers a broad range of products and services. Our retail and small and mid-sized in-depth BMO Wealth Management BMO’s group of wealth management businesses serves a full range of client segments, from mainstream to ultra high net worth and institutional, with a broad offering of wealth management products and services, including insurance products. Wealth Management (“BMO WM”) is a global business with an active presence in markets across Canada, the United States, EMEA and Asia. BMO Capital Markets BMO Capital Markets (“BMO CM”) is a North American-based financial services provider offering a complete range of products and services to corporate, institutional and government clients. Through our Investment and Corporate Banking and Global Markets lines of business, we operate in 33 locations around the world, including 19 offices in North America. Corporate Services Corporate Services consists of Corporate Units and Technology and Operations (“T&O”). Corporate Units provide enterprise-wide expertise, governance and support in a variety of areas, including strategic planning, risk management, finance, legal and regulatory compliance, human resources, communications, marketing, real estate, procurement, data and analytics, and innovation. T&O manages, maintains and provides governance of information technology, cyber security and operations services for the bank. The costs of these Corporate Units and T&O services are largely transferred to the three operating groups (P&C, BMO WM and BMO CM), with any remaining amounts retained in Corporate Services results. As such, Corporate Services results largely reflect the impact of residual treasury-related activities, the elimination of taxable equivalent adjustments, residual unallocated expenses and certain acquisition integration costs and restructuring costs. Basis of Presentation The results of these operating groups are based on our internal financial reporting systems. The accounting policies used in these segments are generally consistent with those followed in the preparation of our consolidated financial statements, as disclosed in Note 1 and throughout the consolidated financial statements. Income taxes presented below may not be reflective of taxes paid in each jurisdiction in which we operate. Income taxes are generally applied to each segment based on a statutory tax rate and may be adjusted for items and activities specific to each segment. A notable accounting measurement difference is the taxable equivalent basis adjustment, as described below. Periodically, certain business lines and units within the business lines are transferred between client and corporate support groups to more closely align our organizational structure with our strategic priorities. In addition, revenue and expense allocations are updated to more accurately align with current experience. Results for prior periods are restated to conform with the current year’s presentation. Taxable Equivalent Basis We analyze revenue on a taxable equivalent basis (“teb”) at the operating group level. Revenue and the provision for income taxes are increased on tax-exempt before-tax tax-exempt Inter-Group Allocations Various estimates and allocation methodologies are used in the preparation of the operating groups’ financial information. Overhead expenses are allocated to operating groups using allocation formulas applied on a consistent basis. Operating group net interest income reflects internal funding charges and credits on the groups’ assets, liabilities and capital, at market rates, taking into account relevant terms and currency considerations. The offset of the net impact of these charges and credits is reflected in Corporate Services. These inter-group allocations are also applied to the geographic segmentation. Our results and average assets, grouped by operating segment, are as follows: (Canadian $ in millions) Canadian U.S. P&C Wealth BMO CM Corporate Total 2019 Net interest income (2) 5,878 4,218 935 2,394 (537 ) 12,888 Non-interest 2,128 1,162 6,727 2,340 238 12,595 Total Revenue 8,006 5,380 7,662 4,734 (299 ) 25,483 Provision for (recovery of) credit losses on impaired loans 544 160 2 52 (7 ) 751 Provision for (recovery of) credit losses on performing loans 63 37 (2 ) 28 (5 ) 121 Total provision for (recovery of) credit losses 607 197 – 80 (12 ) 872 Insurance claims, commissions and changes in policy benefit liabilities – – 2,709 – – 2,709 Depreciation and amortization 338 456 262 149 – 1,205 Non-interest 3,516 2,683 3,260 3,112 854 13,425 Income (loss) before taxes and non-controlling 3,545 2,044 1,431 1,393 (1,141 ) 7,272 Provision for (recovery of) income taxes 919 433 371 307 (516 ) 1,514 Reported net income (loss) 2,626 1,611 1,060 1,086 (625 ) 5,758 Average Assets 237,995 126,584 40,951 342,347 85,375 833,252 (Canadian $ in millions) Canadian U.S. P&C Wealth BMO CM Corporate Total 2018 Net interest income (2) 5,541 3,843 826 1,784 (556 ) 11,438 Non-interest 2,069 1,096 5,475 2,579 248 11,467 Total Revenue 7,610 4,939 6,301 4,363 (308 ) 22,905 Provision for (recovery of) credit losses on impaired loans 466 258 6 (17 ) (13 ) 700 Provision for (recovery of) credit losses on performing loans 3 (38 ) – (1 ) (2 ) (38 ) Total provision for (recovery of) credit losses 469 220 6 (18 ) (15 ) 662 Insurance claims, commissions and changes in policy benefit liabilities – – 1,352 – – 1,352 Depreciation and amortization 317 454 231 125 – 1,127 Non-interest 3,393 2,514 3,284 2,734 425 12,350 Income (loss) before taxes and non-controlling 3,431 1,751 1,428 1,522 (718 ) 7,414 Provision for (recovery of) income taxes 882 357 356 366 – 1,961 Reported net income (loss) 2,549 1,394 1,072 1,156 (718 ) 5,453 Average Assets 224,554 110,351 35,913 307,087 76,390 754,295 (Canadian $ in millions) Canadian U.S. P&C Wealth BMO CM Corporate Total 2017 Net interest income (2) 5,261 3,551 722 2,501 (760 ) 11,275 Non-interest 2,079 1,005 5,496 2,075 177 10,832 Total Revenue 7,340 4,556 6,218 4,576 (583 ) 22,107 Provision for (recovery of) credit losses (3) 483 289 8 44 (78 ) 746 Insurance claims, commissions and changes in policy benefit liabilities – – 1,538 – – 1,538 Depreciation and amortization 308 433 242 120 – 1,103 Non-interest 3,226 2,458 3,113 2,666 626 12,089 Income (loss) before taxes and non-controlling 3,323 1,376 1,317 1,746 (1,131 ) 6,631 Provision for (recovery of) income taxes 823 358 350 471 (710 ) 1,292 Reported net income (loss) 2,500 1,018 967 1,275 (421 ) 5,339 Non-controlling – – 2 – – 2 Net Income (loss) attributable to equity holders of the bank 2,500 1,018 965 1,275 (421 ) 5,337 Average Assets 217,685 104,209 32,562 302,518 65,652 722,626 (1) Corporate Services includes Technology and Operations. (2) Operating groups report on a taxable equivalent basis – see Basis of Presentation section. (3) 2017 has not been restated to reflect the adoption of IFRS 9. Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). Geographic Information We operate primarily in Canada and the United States, but we also have operations in the U.K., Europe, the Caribbean and Asia, which are grouped in other countries in the table below. We allocate our results by geographic region based on the location of the unit responsible for managing the related assets, liabilities, revenues and expenses. Our results and average assets, grouped by geographic region, are as follows: (Canadian $ in millions) Canada United States Other countries Total 2019 Total Revenue 15,134 8,282 2,067 25,483 Income before taxes 4,324 2,367 581 7,272 Reported net income 3,391 1,903 464 5,758 Average Assets 469,032 316,983 47,237 833,252 (Canadian $ in millions) Canada United States Other countries Total 2018 Total Revenue 13,632 7,273 2,000 22,905 Income before taxes 4,840 1,871 703 7,414 Reported net income 3,797 1,100 556 5,453 Average Assets 441,376 277,764 35,155 754,295 (Canadian $ in millions) Canada United States Other countries Total 2017 Total Revenue 13,365 7,015 1,727 22,107 Income before taxes and non-controlling 4,589 1,580 462 6,631 Reported net income 3,816 1,200 323 5,339 Average Assets 430,570 264,473 27,583 722,626 Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Significant Subsidiaries
Significant Subsidiaries | 12 Months Ended |
Oct. 31, 2019 | |
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Significant Subsidiaries | Note 26: Significant Subsidiaries As at October 31, 2019, the bank, either directly or indirectly through its subsidiaries, controls the following significant operating subsidiaries. Significant subsidiaries (1)(2) Head or principal office Book value of shares owned by the Bank of Montreal Capital Markets (Holdings) Limited and subsidiaries, including: London, England 364 BMO Capital Markets Limited London, England Pyrford International Limited London, England Bank of Montreal (China) Co. Ltd. Beijing, China 449 Bank of Montreal Europe plc (3) Dublin, Ireland 1,042 Bank of Montreal Holding Inc. and subsidiaries, including: Toronto, Canada 31,175 Bank of Montreal Mortgage Corporation Calgary, Canada BMO Mortgage Corp. Vancouver, Canada BMO Investments Limited Hamilton, Bermuda BMO Reinsurance Limited St. Michaels, Barbados BMO Nesbitt Burns Holdings Corporation Toronto, Canada BMO Nesbitt Burns Inc. Toronto, Canada BMO Investments Inc. Toronto, Canada BMO InvestorLine Inc. Toronto, Canada BMO Financial Corp. and subsidiaries, including: Chicago, United States 23,396 BMO Asset Management Corp. and subsidiaries Chicago, United States BMO Capital Markets Corp. New York, United States BMO Family Office, LLC (4) Palo Alto, United States BMO Harris Bank National Association and subsidiaries, including: Chicago, United States BMO Harris Investment Company LLC Las Vegas, United States BMO Harris Financial Advisors, Inc. Chicago, United States BMO Harris Financing, Inc. and subsidiaries Chicago, United States BMO Global Asset Management (Europe) Limited and subsidiaries, including: London, England 677 BMO Asset Management (Holdings) plc and subsidiaries London, England BMO Life Insurance Company and subsidiaries, including: Toronto, Canada 1,285 BMO Life Holdings (Canada), ULC Halifax, Canada BMO Life Assurance Company Toronto, Canada BMO Trust Company Toronto, Canada 774 BMO Trustee Asia Limited Hong Kong, China 2 LGM (Bermuda) Limited and subsidiaries, including: Hamilton, Bermuda 154 BMO Global Asset Management (Asia) Limited Hong Kong, China LGM Investments Limited London, England (1) Each subsidiary is incorporated or organized under the laws of the state or country in which the principal office is situated, except for BMO Financial Corp., BMO Asset Management Corp., BMO Capital Markets Corp., BMO Harris Financial Advisors, Inc., BMO Harris Financing, Inc., and BMO Family Office, LLC, which are incorporated under the laws of the state of Delaware, United States. BMO Asset Management (Holdings) plc is incorporated under the laws of Scotland. (2) Unless otherwise noted, the bank, either directly or indirectly through its subsidiaries, owns 100% of the outstanding voting shares of each subsidiary. (3) Effective September 2, 2019, Bank of Montreal Ireland Public Limited Company changed its name to Bank of Montreal Europe Public Limited Company. (4) Effective January 1, 2019, CTC MyCFO, LLC changed its name to BMO Family Office, LLC. Significant Restrictions Our ability to transfer funds between our subsidiaries may be restricted by statutory, contractual, capital and regulatory requirements. Restrictions include: • Assets pledged as security for various liabilities we incur. Refer to Note 24 for details. • Assets of our consolidated structured entities that are held for the benefit of the note holders. Refer to Note 7 for details. • Assets held by our insurance subsidiaries. Refer to Note 12 for details. • Regulatory and statutory requirements that reflect capital and liquidity requirements. • Funds required to be held with central banks. Refer to Note 2 for details. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Oct. 31, 2019 | |
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Related Party Transactions | Note 27: Related Party Transactions Related parties include subsidiaries, associates, joint ventures, employee future benefit plans and key management personnel and their close family members. Close family members include spouses, common-law Key Management Personnel Compensation Key management personnel is defined as those persons having authority and responsibility for planning, directing and/or controlling the activities of an entity, being the members of our Board of Directors (“directors”) and certain senior executives. The following table presents the compensation of our key management personnel: (Canadian $ in millions) 2019 2018 2017 Base salary and incentives 22 21 23 Post-employment benefits 2 2 1 Share-based payments (1) 43 31 38 Total key management personnel compensation 67 54 62 (1) Amounts included in share-based payments are the fair values of awards granted in the year. We offer senior executives market interest rates on credit card balances, a fee-based Directors receive a specified amount of their annual retainer in deferred stock units. Until a director’s shareholdings (including deferred stock units) are eight times greater than their annual retainer, they are required to take 100% of their annual retainer and other fees in the form of either our common shares or deferred stock units. They may elect to receive the remainder of such retainer fees and other remuneration in cash, common shares or deferred stock units. Directors of our wholly owned subsidiary, BMO Financial Corp., are required to take a specified minimum amount of their annual retainer and other fees in the form of deferred stock units. Joint Ventures and Associates We provide banking services to our joint ventures and associates on the same terms offered to our customers for these services. The following table presents the carrying amount of our interests in joint ventures and associated companies accounted for under the equity method as well as our share of the income of those entities: (Canadian $ in millions) Joint ventures Associates 2019 2018 2019 2018 Carrying amount 343 231 501 471 Share of net income 99 107 52 60 We do not have any joint ventures or associates that are individually material to our consolidated financial statements. The following table presents transactions with our joint ventures and associates: (Canadian $ in millions) 2019 2018 Loans 169 195 Deposits 106 114 Fees paid for services received 69 71 Guarantees and commitments 76 65 |
Transition to IFRS 9
Transition to IFRS 9 | 12 Months Ended |
Oct. 31, 2019 | |
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Transition to IFRS 9 | Note 28: Transition to IFRS 9 The following table shows the pre-transition (Canadian $ in millions) IAS 39 measurement IFRS 9 measurement IAS 39 carrying Reclassification Remeasurement IFRS 9 carrying Financial Assets Securities Trading Trading 99,069 (8,534 ) – 90,535 FVTPL – 8,534 – 8,534 Available-for-sale na 54,075 (54,075 ) – – FVOCI – 51,909 – 51,909 FVTPL – 2,081 – 2,081 Amortized cost – 85 – 85 Held-to-maturity Amortized cost 9,094 – (2 ) 9,092 Other Other 960 (333 ) – 627 FVTPL – 333 – 333 Total Securities 163,198 – (2 ) 163,196 Loans Residential mortgages Amortized cost Amortized cost 115,258 – – 115,258 Consumer instalment and other Amortized cost Amortized cost 61,944 – – 61,944 Credit cards Amortized cost Amortized cost 8,071 – – 8,071 Business and government Amortized cost Amortized cost 175,067 (2,372 ) – 172,695 FVTPL – 2,372 – 2,372 Total Loans 360,340 – – 360,340 Allowance for credit losses (1,833 ) – 154 (1,679 ) 358,507 – 154 358,661 Remaining financial assets (1) 127,706 – (6 ) 127,700 Financial Liabilities Allowance for credit losses on off-balance 163 – 76 239 Total pre-tax na – 70 na Total after-tax 3,066 (55 ) – 3,011 Total after-tax (2)(3) 23,709 55 44 23,808 Total after-tax 44,354 – 44 44,398 (1) Represents cash and cash equivalents, interest bearing deposits with banks, securities borrowed or purchased under resale agreements and other assets. Remeasurement represents the impact of the impairment provisions of IFRS 9 on these remaining financial assets. (2) Reclassification amount represents the after-tax pre-tax) available-for-sale (3) Remeasurement represents the after-tax pre-tax) na – not applicable due to IFRS 9 adoption. The securities balances by measurement category following the adoption of IFRS 9 as at November 1, 2017 were: (Canadian $ in millions) November 1, 2017 Trading 90,535 FVTPL 10,948 FVOCI 51,909 Amortized cost 9,177 Other 627 Total 163,196 The primary impact as a result of adopting the classification and measurement provisions of IFRS 9 relates to securities held by the bank. On transition, our existing held-to-maturity Our available-for-sale available-for-sale Available-for-sale available-for-sale available-for-sale Our lending portfolios continue to be recorded at amortized cost, with the exception of certain business and government loans with contractual cash flows that did not represent solely payments of principal and interest, and were classified as fair value through profit or loss. The following table illustrates the impact of transition to IFRS 9 on the allowance for credit losses as of November 1, 2017. (Canadian $ in millions) IAS 39 collective IAS 39 specific IAS 39 Remeasurement IFRS 9 IFRS 9 Stage 1 IFRS 9 Stage 2 IFRS 9 Stage 3 Loans Residential mortgages 69 24 93 (20 ) 73 16 33 24 Consumer instalment and other 343 136 479 71 550 70 344 136 Credit cards 243 – 243 41 284 63 221 – Business and government 785 233 1,018 (246 ) 772 205 334 233 Total allowance for credit losses 1,440 393 1,833 (154 ) 1,679 354 932 393 Allowance for credit losses on remaining financial assets (1) – – – 8 8 7 1 – Allowance for credit losses on off-balance 136 27 163 76 239 89 123 27 Total 1,576 420 1,996 (70 ) 1,926 450 1,056 420 (1) Represents cash and cash equivalents, interest bearing deposits with banks, securities, securities borrowed or purchased under resale agreements and other assets. Accounting Policies for Financial Instruments under IAS 39, Financial Instruments: Recognition and Measurement The following accounting policies apply to comparative information for 2017 in our consolidated financial statements as we did not restate prior periods on adoption of IFRS 9. Classification and Measurement of Securities Securities are divided into four types: trading securities designated at FVTPL, available-for-sale held-to-maturity Trading securities We record the transaction costs, gains and losses realized on disposal and unrealized gains and losses due to changes in fair value in our Consolidated Statement of Income in trading revenues. Securities designated at FVTPL are financial instruments that are accounted for at fair value, with changes in fair value recorded in income provided they meet certain criteria. Available-for-sale Available-for-sale available-for-sale non-interest available-for-sale Held-to-maturity Other securities Impairment of Securities We review held-to-maturity, available-for-sale quarter-end For held-to-maturity, available-for-sale a result of an event that reduces the estimated future cash flows from the security and the impact can be reliably estimated. We do not record impairment write-downs on debt securities when impairment is due to changes in market interest rates if future contractual cash flows associated with the debt security are still expected to be recovered. The impairment loss on available-for-sale available-for-sale The impairment loss on held-to-maturity For available-for-sale available-for-sale held-to-maturity Loans Loans are initially measured at fair value plus directly attributable costs, and are subsequently measured at amortized cost using the effective interest method. The effective interest method allocates interest income over the expected term of the loan by applying the effective interest rate to the carrying amount of the loan. The effective interest rate is defined as the rate that exactly discounts future cash receipts through the expected term of the loan to the net carrying amount of the loan. Under the effective interest method, the amount recognized in interest, dividend and fee income, loans, varies over the term of the loan based on the principal outstanding. Allowance for Credit Losses The allowance for credit losses adjusts the value of loans to reflect their estimated realizable value. In assessing their estimated realizable value, we must rely on estimates and exercise judgment regarding matters for which the ultimate outcome is unknown. These include economic factors, developments affecting companies in particular industries, and specific issues with respect to single borrowers. Changes in circumstances may cause future assessments of credit risk to be materially different from current assessments, which could result in an increase or decrease in the allowance for credit losses. The allowance is comprised of a specific allowance and a collective allowance. Specific Allowance These allowances are recorded for individually identified impaired loans to reduce their carrying value to the expected recoverable amount. We review our loans on an ongoing basis to assess whether any loans should be classified as impaired and whether an allowance or write-off Individually Significant Impaired Loans To determine the amount we expect to recover from an individually significant impaired loan, we use the value of the estimated future cash flows discounted at the loan’s original effective interest rate. The determination of estimated future cash flows of a collateralized impaired loan reflects the expected realization of the underlying security, net of expected costs and any amounts legally required to be paid to the borrower. Security can vary by type of loan and may include cash, securities, real estate properties, accounts receivable, guarantees, inventory or other capital assets. Individually Insignificant Impaired Loans Residential mortgages, consumer instalment and other personal loans are individually insignificant and may be individually assessed or collectively assessed for losses at the time of impairment, taking into account historical loss experience. Collective Allowance We maintain a collective allowance in order to cover impairment in the existing portfolio for loans that have not yet been individually identified as impaired. Our approach to establishing and maintaining the collective allowance is based on the requirements of IAS 39, considering guidelines issued by OSFI. The collective allowance methodology incorporates both quantitative and qualitative factors to determine an appropriate level for the collective allowance. For the purpose of calculating the collective allowance, we group loans on the basis of similarities in credit risk characteristics. The loss factors for groups of loans are determined based on a minimum of five years of historical data and a one-year |
Accounting Policies (Policies)
Accounting Policies (Policies) | 12 Months Ended |
Oct. 31, 2019 | |
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Basis of Consolidation | Basis of Consolidation These consolidated financial statements are inclusive of the financial statements of our subsidiaries as at October 31, 2019. We conduct business through a variety of corporate structures, including subsidiaries, structured entities (“SEs”), associates and joint ventures. Subsidiaries are those entities where we exercise control through our ownership of the majority of the voting shares. We also hold interests in SEs, which we consolidate when we control the SEs. These are more fully described in Note 7. All of the assets, liabilities, revenues and expenses of our subsidiaries and consolidated SEs are included in our consolidated financial statements. All intercompany transactions and balances are eliminated on consolidation. We hold investments in associates, where we exert significant influence over operating and financing decisions (generally companies in which we own between 20% and 50% of the voting shares). These are accounted for using the equity method. The equity method is also applied to our investments in joint ventures, which are entities where we exercise joint control through an agreement with other shareholders. Under the equity method of accounting, investments are initially recorded at cost, and the carrying amount is increased or decreased to recognize our share of investee net income or loss, including other comprehensive income or loss. Our equity accounted investments are recorded as other securities and our share of the net income or loss is recorded in investments in associates and joint ventures, in our Consolidated Statement of Income. Any other comprehensive income amounts are reflected in the relevant section of our Consolidated Statement of Comprehensive Income. Additional information regarding accounting for other securities is included in Note 3. |
Translation of Foreign Currencies | Translation of Foreign Currencies We conduct business in a variety of foreign currencies and present our consolidated financial statements in Canadian dollars, which is our functional currency. Monetary assets and liabilities, as well as non-monetary Non-monetary Unrealized gains and losses arising from translating our net investment in foreign operations into Canadian dollars, net of related hedging activities and applicable income taxes, are included in our Consolidated Statement of Comprehensive Income within net gains (losses) on translation of net foreign operations. When we dispose of a foreign operation such that control, significant influence or joint control is lost, the cumulative amount of the translation gain (loss) and any applicable hedging activities and related income taxes is reclassified to our Consolidated Statement of Income as part of the gain or loss on disposition. Foreign currency translation gains and losses on equity securities measured at FVOCI that are denominated in foreign currencies are included in accumulated other comprehensive income on FVOCI equity securities, net of taxes, in our Consolidated Statement of Changes in Equity. All other foreign currency translation gains and losses are included in foreign exchange gains, other than trading, in our Consolidated Statement of Income as they arise. From time to time, we enter into foreign exchange hedge contracts to reduce our exposure to changes in the value of foreign currencies. Realized and unrealized gains and losses that arise on the mark-to-market non-interest |
Revenue | Revenue Dividend Income Dividend income is recognized when the right to receive payment is established. This is the ex-dividend Fee Income Securities commissions and fees Deposit and payment service charges Card fees Investment management and custodial fees Mutual fund revenues Underwriting and advisory fees merger-and-acquisition |
Leases | Leases We are lessors in both financing leases and operating leases. Leases are classified as financing leases if they transfer substantially all the risks and rewards incidental to ownership of the leased asset to the lessee. Otherwise they are classified as operating leases, as we retain substantially all the risks and rewards of asset ownership. As lessor in a financing lease, a loan is recognized equal to the investment in the lease, which is calculated as the present value of the minimum payments to be received from the lessee, discounted at the interest rate implicit in the lease, plus any unguaranteed residual value we expect to recover at the end of the lease. Finance lease income is recognized in interest, dividend and fee income, loans, in our Consolidated Statement of Income. Assets under operating leases are recorded in other assets in our Consolidated Balance Sheet. Rental income is recognized on a straight-line basis over the term of the lease in non-interest non-interest |
Assets Held-for-Sale | Assets Held-for-Sale Non-current non-financial held-for-sale non-current non-interest |
Changes in Accounting Policies | Changes in Accounting Policies Revenue Effective November 1, 2018, we adopted IFRS 15 Revenue from Contracts with Customers non-interest non-interest out-of-pocket non-interest The following table summarizes the impacts of applying IFRS 15 on our prior period Consolidated Statement of Income: (Canadian $ in millions) 2018 2017 Increase (decrease) in Non-Interest Securities commissions and fees (4 ) (5 ) Deposit and payment service charges (10 ) (14 ) Card fees (136 ) (150 ) Investment management and custodial fees 7 5 Underwriting and advisory fees 7 8 Other 4 3 (132 ) (153 ) Non-Interest Employee compensation 2 1 Travel and business development (154 ) (153 ) Professional fees 8 6 Other 8 8 (136 ) (138 ) Provision for income taxes 1 (4 ) Net Income 3 (11 ) Share-based Payment Effective November 1, 2018, we adopted amendments to IFRS 2 Share-based Payment Financial Instruments Effective November 1, 2017 , Financial Instruments Financial Instruments: Recognition and Measurement (“IAS 39”). |
Use of Estimates and Judgments | Use of Estimates and Judgments The preparation of the consolidated financial statements requires management to use estimates and assumptions that affect the carrying amounts of certain assets and liabilities, certain amounts reported in net income and other related disclosures. The most significant assets and liabilities for which we must make estimates include allowance for credit losses; financial instruments measured at fair value; pension and other employee future benefits; impairment of securities; income taxes and deferred tax assets; goodwill and intangible assets; insurance-related liabilities; and provisions. We make judgments in assessing the business model for financial assets as well as whether substantially all risks and rewards have been transferred in respect of transfers of financial assets and whether we control SEs, as discussed in Notes 6 and 7, respectively. If actual results were to differ from the estimates, the impact would be recorded in future periods. We have established detailed policies and control procedures that are intended to ensure these judgments are well controlled, independently reviewed and consistently applied from period to period. We believe that our estimates of the value of our assets and liabilities are appropriate. Allowance for Credit Losses The expected credit loss (“ECL”) model requires the recognition of credit losses generally based on 12 months of expected losses for performing loans and the recognition of lifetime losses on performing loans that have experienced a significant increase in credit risk since origination. The determination of a significant increase in credit risk takes into account many different factors and varies by product and risk segment. The main factors considered in making this determination are relative changes in probability of default since origination, and certain other criteria, such as 30-day In determining whether there has been a significant increase in credit risk and in calculating the amount of expected credit losses, we must rely on estimates and exercise judgment regarding matters for which the ultimate outcome is unknown. These judgments include changes in circumstances that may cause future assessments of credit risk to be materially different from current assessments, which could require an increase or decrease in the allowance for credit losses. The calculation of expected credit losses includes the explicit incorporation of forecasts of future economic conditions. We have developed models incorporating specific macroeconomic variables that are relevant to each portfolio. Key economic variables for our retail portfolios include primary operating markets of Canada, the United States ( U . S. Additional information regarding the allowance for credit losses is included in Note 4. Financial Instruments Measured at Fair Value Fair value measurement techniques are used to value various financial assets and financial liabilities, and are also used in performing impairment testing on certain non-financial Additional information regarding our fair value measurement techniques is included in Note 17. Pension and Other Employee Future Benefits Our pension and other employee future benefits expense is calculated by our independent actuaries using assumptions determined by management. If actual experience were to differ from the assumptions used, we would recognize this difference in other comprehensive income. Pension and other employee future benefits expense, plan assets and defined benefit obligations are also sensitive to changes in discount rates. We determine discount rates for all of our plans using high-quality AA rated corporate bond yields with terms matching the plans’ specific cash flows. Additional information regarding our accounting for pension and other employee future benefits is included in Note 21. Impairment of Securities We review other securities at each quarter-end Debt securities measured at amortized cost or FVOCI are assessed for impairment using the expected credit loss model. For securities determined to have low credit risk, the allowance for credit losses is measured at a 12-month expected credit loss. Additional information regarding our accounting for debt securities measured at amortized cost or FVOCI and other securities, allowance for credit losses and the determination of fair value is included in Notes 3 and 17. Income Taxes and Deferred Tax Assets The provision for income taxes is calculated based on the expected tax treatment of transactions recorded in either our Consolidated Statement of Income or Consolidated Statement of Changes in Equity. In determining the provision for income taxes, we interpret tax legislation, case law and administrative positions in numerous jurisdictions and, based on our judgment, record our estimate of the amount required to settle tax obligations. We also make assumptions about the expected timing of the reversal of deferred tax assets and liabilities. If our interpretations and assumptions differ from those of tax authorities or if the timing of reversals is not as expected, our provision for income taxes could increase or decrease in future periods. The amount of any such increase or decrease cannot be reasonably estimated. Deferred tax assets are recognized only when it is probable that sufficient taxable profit will be available in future periods against which deductible temporary differences or unused tax losses and tax credits may be utilized. We are required to assess whether it is probable that our deferred income tax assets will be realized. The factors used to assess the probability of realization are our past experience of income and capital gains, our forecast of future net income before taxes, and the remaining expiration period of tax loss carryforwards and tax credits. Changes in our assessment of these factors could increase or decrease our provision for income taxes in future periods. Additional information regarding our accounting for income taxes is included in Note 22. Goodwill and Intangible Assets For the purpose of impairment testing, goodwill is allocated to our groups of cash-generating units (“CGUs”), which represent the lowest level within the bank at which goodwill is monitored for internal management purposes. Impairment testing is performed at least annually, by comparing the carrying values and the recoverable amounts of the CGUs to which goodwill has been allocated to determine whether the recoverable amount of each group is greater than its carrying value. If the carrying value of the group were to exceed its recoverable amount, an impairment calculation would be performed. The recoverable amount of a CGU is the higher of its fair value less costs to sell and value in use. In determining fair value less costs to sell, we employ a discounted cash flow model consistent with those used when we acquire businesses. This model is dependent on assumptions related to revenue growth, discount rates, synergies achieved on acquisition and the availability of comparable acquisition data. Changes in any of these assumptions would affect the determination of fair value for each of the business units in a different manner. Management must exercise judgment and make assumptions in determining fair value less costs to sell, and differences in judgment and assumptions could affect the determination of fair value and any resulting impairment write-down. Intangible assets with a definite life are amortized to income on either a straight-line or an accelerated basis over a period not exceeding 15 years, depending on the nature of the asset. We test definite-life intangible assets for impairment when circumstances indicate the carrying value may not be recoverable. Indefinite-life intangible assets are tested annually for impairment. If any intangible assets are determined to be impaired, we write them down to their recoverable amount, the higher of value in use and fair value less costs to sell, when this is less than the carrying value. Additional information regarding goodwill and intangible assets is included in Note 11. Insurance-Related Liabilities Insurance claims and policy benefit liabilities represent current claims and estimates of future insurance policy benefit liabilities. Liabilities for life insurance contracts are determined using the Canadian Asset Liability Method, which incorporates best-estimate assumptions for mortality, morbidity, policy lapses, surrenders, future investment yields, policy dividends, administration costs and margins for adverse deviation. These assumptions are reviewed at least annually and updated to reflect actual experience and market conditions. The most significant impact on the valuation of a liability would result from a change in the assumption for future investment yields. Additional information regarding insurance-related liabilities is included in Note 14. Provisions A provision, including for restructuring, is recognized if, as a result of a past event, the bank has a present legal or constructive obligation that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle the obligation. Provisions are recorded at the best estimate of the amounts required to settle the obligation as at the balance sheet date, taking into account the risks and uncertainties associated with the obligation. Management and external experts are i Additional information regarding provisions is included in Note 24. Transfer of Financial Assets and Consolidation of Structured Entities We enter into transactions in which we transfer assets, typically mortgage loans and credit card loans, to a structured entity or third party to obtain alternate sources of funding. We assess whether substantially all of the risks and rewards of or control over the loans have been transferred to determine if they qualify for derecognition. Since we continue to be exposed to substantially all of the repayment, interest rate and/or credit risk associated with the securitized loans, they do not qualify for derecognition. We continue to recognize the loans and the related cash proceeds as secured financings in our Consolidated Balance Sheet. For securitization vehicles sponsored by the bank, the vehicles typically have limited decision-making authority. The structure of these vehicles limits the activities they can undertake, the types of assets they can hold and how activities are funded. We control and consolidate these vehicles when we have the key decision-making powers necessary to obtain the majority of the benefits of their activities. For certain investments in limited partnerships, we exercise judgment in determining whether we control an entity. Based on an assessment of our interests and rights, we have determined that we do not control certain entities, even though we may have an ownership interest greater than 50%. This may be the case when we are not the general partner in an arrangement and the general partner’s rights most significantly affect the returns of the entity. Additionally, we have determined that we control certain entities despite having an ownership interest less than 50%. This may be the case when we are the general partner in an arrangement and the general partner’s rights most significantly affect the returns of the entity. Transferred assets are discussed in greater detail in Note 6 and structured entities are discussed in greater detail in Notes 7 and 20. |
Future Changes in IFRS | Future Changes in IFRS Leases In January 2016, the IASB issued IFRS 16 Leases for most leases, lessees will recognize a liability for the present value of future lease payments and record a corresponding asset on the balance sheet. There are minimal changes to lessor accounting. IFRS 16 is effective for our fiscal year beginning November 1, 2019. The main impact for the bank will be recording real estate leases on the balance sheet. Currently, most of our real estate leases are classified as operating leases, whereby we record lease expense over the lease term with no asset or liability recorded on the balance sheet other than any related leasehold improvements. Under IFRS 16, we will recognize right-of-use On transition, we will recalculate the right-of-use asset as if we had always applied IFRS 16 for a selection of leases, and for the remaining leases, we will set the right-of-use asset equal to the lease liability. We will continue to account for low-dollar-value leases as executory contracts, with lease expense recorded over the lease term and no corresponding right-of-use asset or lease liability for certain types of leases. In addition, we have elected to exclude intangibles from the scope of lease accounting, and we will combine lease and non-lease components (for example, maintenance and utilities that have fixed payments) in the calculation of right-of-use assets and lease liabilities. When we adopt IFRS 16, we will recognize the cumulative effect of any changes in opening retained earnings with no changes to prior years. The impact will be an increase in assets of approximately $2.0 billion, an increase in liabilities of approximately $2.1 billion, a decrease in equity of approximately $100 million ($75 million after tax) and a decrease in our CET1 capital ratio by up to approximately 10 bps. Uncertainty Over Income Tax Treatments On June 7, 2017, the IASB issued IFRIC Interpretation 23 Uncertainty over Income Tax Treatments b Income Taxes Interbank Offered Rate (“IBOR”) Reform The IASB published Phase 1 of its amendments to IFRS 9 Financial Instruments Financial Instruments: Recognition and Measurement Financial Instruments: Disclosures b The Phase 1 amendments are effective for our fiscal year beginning November 1, 2020, with early adoption permitted. We are in the process of assessing our inventory of IBOR-based instruments and related hedge accounting relationships to evaluate the impact of these amendments on our financial results. We provide disclosure on our current hedging relationships in Note 8. Insurance Contracts In May 2017, the IASB issued IFRS 17 Insurance Contracts Insurance Contracts Conceptual Framework In March 2018, the IASB issued the revised Conceptual Framework (“Framework”), which sets out the fundamental concepts for financial reporting to ensure consistency in standard-setting decisions and that similar transactions are treated in a similar way, so as to provide useful information to users of financial statements. The revised Framework, which is effective for our fiscal year beginning November 1, 2020, will inform future standard-setting decisions but does not impact existing IFRS. We do not expect the Framework to have a significant impact on our accounting policies. |
Trading and other securities | Trading securities Fair value through profit or loss securities Securities Designated at FVTPL In order to qualify for this designation, the security must have reliably measurable fair values, and the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the gains and losses on a different basis. Securities must be designated on initial recognition, and the designation is irrevocable. If these securities were not designated at FVTPL, they would be accounted for at either FVOCI or amortized cost. We designate certain securities held by our insurance subsidiaries that support our insurance liabilities at fair value through profit or loss, since the actuarial calculation of insurance liabilities is based on the fair value of the investments supporting them. This designation aligns the accounting result with the way the portfolio is managed on a fair value basis. The change in fair value of the securities is recorded in non-interest non-interest Securities Mandatorily Measured at FVTPL Securities managed on a fair value basis, but not held for trading, or debt securities with cash flows that do not represent solely payments of principal and interest and equity securities not held for trading or designated at FVOCI are classified as FVTPL. The bank’s FVTPL securities of $13,704 million as at October 31, 2019 ($11,611 million as at October 31, 2018) include $2,899 million of securities mandatorily measured at fair value as at October 31, 2019 ($2,828 million as at October 31, 2018). Debt securities at amortized cost Debt securities at FVOCI Debt securities measured at FVOCI are initially recorded at fair value plus transaction costs. They are subsequently measured at fair value, with unrealized gains and losses recorded in our Consolidated Statement of Comprehensive Income until the security is sold or impaired. Gains and losses on disposal and impairment losses (recoveries) are recorded in our Consolidated Statement of Income in non-interest Equity securities at FVOCI Other securities We account for all of our securities transactions using settlement date accounting in our Consolidated Balance Sheet. Changes in fair value between the trade date and settlement date are recorded in net income, except for those related to securities measured at FVOCI, which are recorded in other comprehensive income. |
Impairment Review | Impairment Review Debt securities at amortized cost or FVOCI are assessed for impairment using the ECL model, with the exception of securities determined to have low credit risk, where the allowance for credit losses is measured at a 12 month expected credit loss. A financial asset is considered to have low credit risk if the financial asset has a low risk of default, the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flow obligations. Debt securities at amortized cost totalling $24,472 million as at October 31, 2019 ($6,485 million as at October 31, 2018) are net of allowances for credit losses of $1 million as at October 31, 2019 ($1 million as at October 31, 2018). Debt securities at FVOCI totalling $64,434 million as at October 31, 2019 ($62,378 million as at October 31, 2018) are net of allowances for credit losses of $2 million as at October 31, 2019 ($2 million as at October 31, 2018). Equity securities at FVOCI totalling $81 million as at October 31, 2019 ($62 million as at October 31, 2018) are not subject to an impairment assessment . |
Loans and Allowances | Securities Borrowed or Purchased Under Resale Agreements Securities borrowed or purchased under resale agreements represent the amounts we will receive as a result of our commitment to return or resell securities that we have borrowed or purchased, back to the original lender or seller, on a specified date at a specified price. We account for these instruments as if they were loans. Lending Fees Lending fees arise in Personal and Commercial Banking and Capital Markets. The accounting treatment for lending fees varies depending on the transaction. Some loan origination, restructuring and renegotiation fees are recorded as interest income over the term of the loan, while other lending fees are taken into income at the time of loan origination. Commitment fees are calculated as a percentage of the facility balance at the end of the period. The fees are recorded as interest income over the term of the loan, unless we believe the loan commitment will not be used. In the latter case, commitment fees are recorded as lending fees earned over the commitment period. Loan syndication fees are payable and included in lending fees at the time the syndication is completed, unless the yield on any loans we retain is less than that of other comparable lenders involved in the financing. In the latter case, an appropriate portion of the syndication fee is recorded as interest income over the term of the loan. Impaired Loans We classify a loan as impaired (Stage 3) when one or more loss events have occurred, such as bankruptcy, default or delinquency. Generally, consumer loans in both Canada and the U.S. are classified as impaired when payment is contractually 90 days past due, or one year past due for residential mortgages if guaranteed by the Government of Canada. Credit card loans are immediately written off when principal or interest payments are 180 days past due, and are not reported as impaired. In Canada, consumer instalment loans, other personal loans and some small business loans are normally written off when they are one year past due. In the U.S., all consumer loans are generally written off when they are 180 days past due, except for non-real Corporate and commercial loans are classified as impaired when we determine there is no longer reasonable assurance that principal or interest will be collected in their entirety on a timely basis. Generally, we consider corporate and commercial loans to be impaired when payments are 90 days past due. Corporate and commercial loans are written off following a review on an individual loan basis that confirms all recovery attempts have been exhausted. A loan will be reclassified to performing status when we determine that there is reasonable assurance of full and timely repayment of interest and principal in accordance with the terms and conditions of the loan, and that none of the criteria for classification of the loan as impaired continue to apply. Loans are in default when the borrower is unlikely to pay its credit obligations in full without recourse by the bank, such as realizing security, or when the borrower’s payments are past due more than 90 days (180 days for credit card loans). Overdrafts are considered to be past due once the customer has breached an advised limit or has been advised of a limit smaller than currently outstanding or, in the case of retail overdrafts, has not brought the overdraft down to a $nil balance within a specified time period. Our average gross impaired loans were $2,285 million for the year ended October 31, 2019 ($2,115 million in 2018). Our average impaired loans, net of the specific allowance, were $1,864 million for the year ended October 31, 2019 ($1,706 million in 2018). Once a loan is identified as impaired, we continue to recognize interest income based on the original effective interest rate on the loan amount net of its related allowance. In the periods following the recognition of impairment, adjustments to the allowance for these loans reflecting the time value of money are recognized as interest income. Interest income on impaired loans of $80 million was recognized for the year ended October 31, 2019 ($67 million in 2018 and $75 million in 2017). During the year ended October 31, 2019, we recorded a net gain of $11 million before tax ($4 million in 2018 and $28 million in 2017) on the sale of impaired and written-off loans. Allowance for Credit Losses (“ACL”) The allowance for credit losses recorded in our Consolidated Balance Sheet is maintained at a level that we consider adequate to absorb credit-related losses on our loans and other credit instruments. The allowance for credit losses amounted to $2,094 million as at October 31, 2019 ($1,870 million in 2018), of which $1,850 million ($1,639 million in 2018) was recorded in loans and $244 million ($231 million in 2018) was recorded in other liabilities in our Consolidated Balance Sheet. Significant changes in the gross balances, including originations, maturities and repayments in the normal course of operations, impact the allowance for credit losses. Allowance on Performing Loans We maintain an allowance in order to cover impairment in the existing portfolio for loans that have not yet been individually identified as impaired. Our approach to establishing and maintaining the allowance on performing loans is based on the requirements of IFRS, considering guidelines issued by OSFI. Under the IFRS 9 ECL methodology, an allowance is recorded for expected credit losses on financial assets regardless of whether there has been an actual impairment. We recognize a loss allowance at an amount generally equal to 12 month expected credit losses, if the credit risk at the reporting date has not increased significantly since initial recognition (Stage 1). We will record expected credit losses over the remaining life of performing financial assets which are considered to have experienced a significant increase in credit risk (Stage 2). The determination of a significant increase in credit risk takes into account many different factors and varies by product and risk segment. The main factors considered in making this determination are relative changes in probability-weighted probability of default (“PD”) since origination and certain other criteria, such as 30-day For each exposure, ECL is a function of the PD, exposure at default (“EAD”) and loss given default (“LGD”), with the timing of the loss also considered, and is estimated by incorporating forward-looking economic information and through the use of experienced credit judgment to reflect factors not captured in ECL models. PD represents the likelihood that a loan will not be repaid and will go into default in either a 12 month horizon for Stage 1 or a lifetime horizon for Stage 2. The PD for each individual instrument is modelled based on historical data and is estimated based on current market conditions and reasonable and supportable information about future economic conditions. EAD is modelled based on historical data and represents an estimate of the outstanding amount of credit exposure at the time a default may occur. For off-balance LGD is the amount that may not be recovered in the event of default and is modelled based on historical data and reasonable and supportable information about future economic conditions, where appropriate. LGD takes into consideration the amount and quality of any collateral held. We consider past events, current market conditions and reasonable forward-looking supportable information about future economic conditions in calculating the amount of expected losses. In assessing information about possible future economic conditions, we utilize multiple economic scenarios, including our base case, which represents, in our view, the most probable outcome, as well as benign and adverse forecasts, all of which are developed by our Economics group. Key economic variables used in the determination of the allowance for credit losses reflect the geographic diversity of our portfolios, where appropriate. In considering the lifetime of a loan, the contractual period of the loan, including prepayment, extension and other options, is generally used. For revolving instruments, such as credit cards, which may not have a defined contractual period, the lifetime is based on historical behaviour. Our ECL methodology also requires the use of experienced credit judgment to incorporate the estimated impact of factors that are not captured in the modelled ECL results. Allowance on Impaired Loans We maintain an allowance on individually identified impaired loans (Stage 3) of $463 million as at October 31, 2019 ($370 million as at October 31, 2018) on our gross impaired loans of $2,629 million as at October 31, 2019 ($1,936 million as at October 31, 2018), to reduce their carrying value to an expected recoverable amount of $2,166 million as at October 31, 2019 ($1,566 million as at October 31, 2018). We review our loans on an ongoing basis to assess whether any loans should be classified as impaired and whether an allowance or write-off Individually Significant Impaired Loans To determine the amount we expect to recover from an individually significant impaired loan, we use the value of the estimated future cash flows discounted at the loan’s original effective interest rate. The determination of estimated future cash flows of a collateralized impaired loan reflects the expected realization of the underlying security, net of expected costs and any amounts legally required to be paid to the borrower. Security can vary by type of loan and may include cash, securities, real estate properties, accounts receivable, guarantees, inventory or other capital assets. Individually Insignificant Impaired Loans Residential mortgages and consumer instalment and other personal loans are individually insignificant and may be assessed individually or collectively for losses at the time of impairment, taking into account historical loss experience and expectations of future economic conditions. Collectively assessed loans are grouped together by similar risk characteristics, such as type of instrument, geographic location, industry, type of collateral and term to maturity. |
Loan Securitization | Loan Securitization We sell Canadian residential mortgages to third-party Canadian securitization programs, including the Canada Mortgage Bond program, directly to third-party investors under the National Housing Act Mortgage-Backed Securities (“NHA-MBS”) program and under our own program. We assess whether substantially all of the risks and rewards of or control over the loans have been transferred to determine whether they qualify for derecognition. Under these programs, we are entitled to the payment over time of the excess of the sum of interest and fees collected from customers, in connection with the mortgages that were sold, over the yield paid to investors, less credit losses and other costs. We also act as counterparty in interest rate swap agreements where we pay the interest due to Canadian Mortgage Bond holders and receive the interest on the underlying mortgages, which are converted into MBS through the NHA-MBS program and sold to the Canada Housing Trust. Since we continue to be exposed to substantially all the prepayment, interest rate and credit risk associated with the securitized mortgages, they do not qualify for derecognition. We continue to recognize the mortgages and the related cash proceeds as secured financing in our Consolidated Balance Sheet. The interest and fees collected, net of the yield paid to investors, are recorded in net interest income using the effective interest method over the term of the securitization. Credit losses associated with the mortgages are recorded in the provision for credit losses. During the year ended October 31, 2019, we sold $6,692 million of mortgages to these programs ($8,062 million in 2018). |
Securities lent or sold under repurchase agreements | Securities lent or sold under repurchase agreements represent short-term funding transactions in which we sell securities that we own and simultaneously commit to repurchase the same securities at a specified price on a specified date in the future. We retain substantially all the risks and rewards associated with the securities and we continue to recognize them in our Consolidated Balance Sheet, with the obligation to repurchase these securities recorded as secured borrowing transactions at the amount owing. The carrying value of these securities approximates the carrying value of the associated liabilities, which total $86,656 million as at October 31, 2019 ($66,684 million as at October 31, 2018), due to the short-term nature. The interest expense related to these liabilities is recorded on an accrual basis in interest expense, other liabilities, in our Consolidated Statement of Income. |
Structured Entities | We enter into certain transactions in the ordinary course of business which involve the establishment of SEs to facilitate or secure customer transactions and to obtain alternate sources of funding. We are required to consolidate an SE if we control the entity. We control an SE when we have power over the SE, exposure to variable returns as a result of our involvement, and the ability to exercise power to affect the amount of our returns. In assessing whether we control an SE, we consider the entire arrangement to determine the purpose and design of the SE, the nature of any rights held through contractual arrangements, and whether we are acting as principal or agent. We perform a reassessment of consolidation if facts and circumstances indicate that there have been changes to one or more of the elements of control over the SE. Information regarding our basis of consolidation is included in Note 1. |
Derivative instruments | Derivative instruments are financial contracts that derive their value from underlying changes in interest rates, foreign exchange rates or other financial or commodity prices or indices. Derivative instruments are either regulated exchange-traded contracts or negotiated over-the-counter Types of Derivatives Swaps Swaps are contractual agreements between two parties to exchange a series of cash flows. The various swap agreements that we enter into are as follows: Interest rate swaps – counterparties generally exchange fixed and floating rate interest payments based on a notional value in a single currency. Cross-currency swaps – fixed rate interest payments and principal amounts are exchanged in different currencies. Cross-currency interest rate swaps – fixed and/or floating rate interest payments and principal amounts are exchanged in different currencies. Commodity swaps – counterparties generally exchange fixed and floating rate payments based on a notional value of a single commodity. Equity swaps – counterparties exchange the return on an equity security or a group of equity securities for the return based on a fixed or floating interest rate or the return on another equity security or group of equity securities. Credit default swaps – one counterparty pays the other a fee in exchange for that other counterparty agreeing to make a payment if a credit event occurs, such as bankruptcy or failure to pay. Total return swaps – one counterparty agrees to pay or receive from the other cash amounts based on changes in the value of a reference asset or group of assets, including any returns such as interest earned on these assets, in exchange for amounts that are based on prevailing market funding rates. Forwards and Futures Forwards and futures are contractual agreements to either buy or sell a specified amount of a currency, commodity, interest-rate-sensitive financial instrument or security at a specified price and date in the future. Forwards are customized contracts transacted in the over-the-counter Options Options are contractual agreements that convey to the purchaser the right but not the obligation to either buy or sell a specified amount of a currency, commodity, interest-rate-sensitive financial instrument or security at a fixed future date or at any time within a fixed future period. For options written by us, we receive a premium from the purchaser for accepting market risk. For options purchased by us, we pay a premium for the right to exercise the option. Since we have no obligation to exercise the option, our primary exposure to risk is the potential credit risk if the writer of an over-the-counter Caps, collars and floors are specialized types of written and purchased options. They are contractual agreements in which the writer agrees to pay the purchaser, based on a specified notional amount, the difference between the market rate and the prescribed rate of the cap, collar or floor. The writer receives a premium for selling this instrument. A swaption is an option granting its owner the right but not the obligation to enter into an underlying swap. A future option is an option contract in which the underlying instrument is a single futures contract. The main risks associated with these derivative instruments are related to exposure to movements in interest rates, foreign exchange rates, credit quality, value of the underlying financial instrument or commodity, as applicable, and the possible inability of counterparties to meet the terms of the contracts. Embedded Derivatives From time to time, we purchase or issue financial instruments containing embedded derivatives. The embedded derivative in a financial liability is separated from the host contract and carried at fair value if the economic characteristics of the derivative are not closely related to those of the host contract, the terms of the embedded derivative are the same as those of a stand-alone derivative, and the combined contract is not measured at fair value. To the extent that we cannot reliably identify and measure the embedded derivative, the entire contract is carried at fair value, with changes in fair value reflected in income. Embedded derivatives in certain of our equity linked notes are accounted for separately from the host instrument. Contingent Features Certain over-the-counter Risks Hedged Interest Rate Risk We manage interest rate risk through interest rate futures, interest rate swaps and options, which are linked to and adjust the interest rate sensitivity of a specific asset, liability, forecasted transaction or firm commitment, or a specific pool of transactions with similar risk characteristics. Foreign Currency Risk We manage foreign currency risk through currency futures, foreign currency options, cross-currency swaps, foreign exchange spot transactions, forward contracts and deposits denominated in foreign currencies. Equity Price Risk We manage equity price risk through total return swaps. Trading Derivatives Trading derivatives include derivatives entered into with customers to accommodate their risk management needs, market-making to facilitate customer-driven demand for derivatives, derivatives transacted on a limited basis to generate trading income from our principal trading positions, and certain derivatives that we enter into as part of our risk management strategy that do not qualify as hedges for accounting purposes (“economic hedges”). We structure and market derivative products to enable customers to transfer, modify or reduce current or expected exposure to risks. Principal trading activities include market-making and positioning activities. Market-making involves quoting bid and offer prices to other market participants with the intention of generating revenues based on spread and volume. Positioning activities involve managing market risk positions with the expectation of profiting from favourable movements in prices, rates or indices. Trading derivatives are recorded at fair value. Realized and unrealized gains and losses are generally recorded in non-interest revenue, trading revenues, in our Consolidated Statement of Income. Unrealized gains and loses on derivatives used to economically hedge certain exposures may be recorded in the Consolidated Statement of Income in the same line as the unrealized gains and losses arising from the exposures. Unrealized gains on trading derivatives are recorded as derivative instrument assets and unrealized losses are recorded as derivative instrument liabilities in our Consolidated Balance Sheet. We may also economically hedge a portion of our U.S. dollar earnings through forward foreign exchange contracts and/or options to minimize fluctuations in our consolidated net income due to the translation of our U.S. dollar earnings. These contracts are recorded at fair value, with changes in fair value recorded in non-interest Fair Value of Trading and Hedging Derivatives Fair value represents point-in-time |
Premises and equipment | We record all premises and equipment at cost less accumulated depreciation, and less any accumulated impairment, except land, which is recorded at cost. Buildings, computer equipment and operating system software, other equipment and leasehold improvements are depreciated on a straight-line basis over their estimated useful lives. When the major components of a building have different useful lives, they are accounted for separately and depreciated over each component’s estimated useful life. The maximum estimated useful lives we use to depreciate our assets are as follows: Buildings 10 to 40 years Computer equipment and operating system software 5 to 7 years Other equipment 10 years Leasehold improvements Lease term to a maximum of 10 years Depreciation methods, useful lives and the residual values of premises and equipment are reviewed annually for any change in circumstances and are adjusted if appropriate. At each reporting period, we review whether there are any indications that premises and equipment need to be tested for impairment. If there is an indication that an asset may be impaired, we test for impairment by comparing the asset’s carrying value to its recoverable amount. The recoverable amount is calculated as the higher of the value in use and the fair value less costs to sell. Value in use is the present value of the future cash flows expected to be derived from the asset. An impairment charge is recorded when the recoverable amount is less than the carrying value. There were no significant write-downs of premises and equipment due to impairment during the years ended October 31, 2019, 2018 and 2017. Gains and losses on disposal are included in non-interest |
Acquisitions | The cost of an acquisition is measured at the fair value of the consideration transferred, including contingent consideration. Acquisition-related costs are recognized as an expense in the period in which they are incurred. The identifiable assets acquired and liabilities assumed and contingent consideration are measured at their fair values at the date of acquisition. Goodwill is measured as the excess of the aggregate of the consideration transferred over the net of the fair value of identifiable assets acquired and liabilities assumed. The results of operations of acquired businesses are included in our consolidated financial statements beginning on the date of acquisition. |
Goodwill | Goodwill When we complete an acquisition, we allocate the purchase price paid to the assets acquired, including identifiable intangible assets, and the liabilities assumed. Any portion of the consideration transferred that is in excess of the fair value of those net assets is considered to be goodwill. Goodwill is not amortized and is instead tested for impairment annually. In performing the impairment test, we utilize the fair value less costs to sell for each group of CGUs based on discounted cash flow projections. Cash flows were projected for the first 10 years based on actual operating results, expected future business performance and past experience. Beyond 10 years, cash flows were assumed to grow at perpetual annual rates of up to 2.5% (3.0% in 2018). The discount rates we applied in determining the recoverable amounts in 2019 ranged from 8.0% to 11.0% (8.6% to 11.4% in 2018), and were based on our estimate of the cost of capital for each CGU. The cost of capital for each CGU was estimated using the Capital Asset Pricing Model, based on the historical betas of publicly traded peer companies that are comparable to the CGU. There were no write-downs of goodwill due to impairment during the years ended October 31, 2019, 2018 and 2017. The key assumptions described above may change as market and economic conditions change. However, we estimate that reasonably possible changes in these assumptions are not expected to cause the recoverable amounts of our CGUs to decline below their carrying amounts. |
Intangible Assets | Intangible Assets |
Customers' Liability under Acceptances | Customers’ Liability under Acceptances Acceptances represent a form of negotiable short-term debt that is issued by our customers, which we guarantee for a fee. The fees earned are recorded in lending fees in our Consolidated Statement of Income over the term of the acceptance. The amount potentially due under acceptances is recorded in other liabilities on our Consolidated Balance Sheet. We record the bank’s equivalent claim against our customers in the event of a call on these commitments in other assets on our Consolidated Balance Sheet. |
Securities Lending and Borrowing | Securities Lending and Borrowing Securities lending and borrowing transactions are generally collateralized by securities or cash. Cash advanced or received as collateral is recorded in other assets or other liabilities, respectively. Interest earned on cash collateral is recorded in interest, dividend and fee income in our Consolidated Statement of Income, and interest expense on cash collateral is recorded in interest expense, other liabilities, in our Consolidated Statement of Income. The transfer of the securities to counterparties is only reflected in our Consolidated Balance Sheet if the risks and rewards of ownership have also been transferred. Securities borrowed are not recognized in our Consolidated Balance Sheet unless they are then sold to third parties, in which case the obligation to return the securities is recorded at fair value in securities sold but not yet purchased, with any gains or losses recorded in non-interest |
Securities Sold but not yet Purchased | Securities Sold But Not Yet Purchased Securities sold but not yet purchased represent our obligations to deliver securities that we did not own at the time of sale. These obligations are recorded at their fair value. Adjustments to the fair value as at the balance sheet date and gains and losses on the settlement of these obligations are recorded in trading revenues in our Consolidated Statement of Income. |
Subordinated debt | Subordinated debt represents our direct unsecured obligations to our debt holders, in the form of notes and debentures, and forms part of our regulatory capital. Subordinated debt is recorded at amortized cost using the effective interest rate method. Where appropriate, we enter into fair value hedges to hedge the risks caused by changes in interest rates (see Note 8). The rights of the holders of our notes and debentures are subordinate to the claims of depositors and certain other creditors. We require approval from OSFI before we can redeem any part of our subordinated debt. |
Authorized Share Capital | Authorized Share Capital We classify financial instruments that we issue as financial liabilities, equity instruments or compound instruments. Financial instruments that will be settled by a variable number of our common shares upon conversion by the holders are classified as liabilities on our Consolidated Balance Sheet. Dividends and interest payments on financial liabilities are classified as interest expense in our Consolidated Statement of Income. Financial instruments are classified as equity instruments when there is no contractual obligation to transfer cash or other financial assets. Further, issued instruments that are not mandatorily redeemable, or that are not convertible into a variable number of our common shares at the holder’s option, are classified as equity and presented in share capital. Dividend payments on equity instruments are recognized as a reduction in equity. Common Shares We are authorized by our shareholders to issue an unlimited number of our common shares, without par value, for unlimited consideration. Our common shares are not redeemable or convertible. Dividends are declared by our Board of Directors at their discretion. Historically, the Board of Directors has declared dividends on a quarterly basis and the amount can vary from quarter to quarter. Preferred Shares We are authorized by our shareholders to issue an unlimited number of Class A Preferred Shares and Class B Preferred Shares, without par value, in series, for unlimited consideration. Class B Preferred Shares may be issued in a foreign currency. Treasury Shares When we purchase our common shares as part of our trading business, we record the cost of those shares as a reduction in shareholders’ equity. If those shares are resold at a price higher than their cost, the premium is recorded as an increase in contributed surplus. If those shares are resold at a price below their cost, the discount is recorded as a reduction first to contributed surplus and then to retained earnings for any amount in excess of the total contributed surplus related to treasury shares. |
Fair Value of Financial Instruments and Trading-Related Revenue | We record trading assets and liabilities, derivatives, certain equity and debt securities and securities sold but not yet purchased at fair value, and other non-trading legal entities or underlying operations that comprise our business. For certain portfolios of financial instruments where we manage exposures to similar and offsetting risks, fair value is determined on the basis of our net exposure to that risk. Fair value represents the amount that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. The fair value amounts disclosed represent point-in-time Governance Over the Determination of Fair Value Senior executive oversight of our valuation processes is provided through various valuation and risk committees. In order to ensure that all financial instruments carried at fair value are reasonably measured for risk management and financial reporting purposes, we have established governance structures and controls, such as model validation and approval, independent price verification (“IPV”) and profit or loss attribution analysis (“PAA”), consistent with industry practice. These controls are applied independently of the relevant operating groups. We establish valuation methodologies for each financial instrument that is required to be measured at fair value. The application of valuation models for products or portfolios is subject to independent approval to ensure only validated models are used. The impact of known limitations of models and data inputs is also monitored on an ongoing basis. IPV is a process that regularly and independently verifies the accuracy and appropriateness of market prices or model inputs used in the valuation of financial instruments. This process assesses fair values using a variety of different approaches to verify and validate the valuations. PAA is a daily process carried out by management to identify and explain changes in fair value positions across all operating lines of business within BMO Capital Markets. This process works in concert with other processes to ensure that the fair values being reported are reasonable and appropriate. Securities For traded securities, quoted market value is considered to be fair value. Quoted market value is based on bid or ask prices, depending on which is the most appropriate to measure fair value. Securities for which no active market exists are valued using all reasonably available market information. Our fair value methodologies are described below. Government Securities The fair value of government issued or guaranteed debt securities in active markets is determined by reference to recent transaction prices, broker quotes or third-party vendor prices. The fair value of securities that are not traded in an active market is modelled using implied yields derived from the prices of similar actively traded government securities and observable spreads. Market inputs to the model include coupon, maturity and duration. Mortgage-Backed Securities and Collateralized Mortgage Obligations The fair value of mortgage-backed securities and collateralized mortgage obligations is determined using prices obtained from independent third-party vendors, broker quotes and relevant market indices, as applicable. If such prices are not available, fair value is determined using cash flow models that make maximum use of observable market inputs or benchmark prices for similar instruments. Valuation assumptions for mortgage-backed securities and collateralized mortgage obligations include discount rates, expected prepayments, credit spreads and recoveries. Corporate Debt Securities The fair value of corporate debt securities is determined using prices observed in the most recent transactions. When observable price quotations are not available, fair value is determined based on discounted cash flow models using discounting curves and spreads obtained from independent dealers, brokers and multi-contributor pricing sources. Trading Loans The fair value of trading loans is determined by referring to current market prices for the same or similar instruments. Corporate Equity Securities The fair value of corporate equity securities is based on quoted prices in active markets, where available. Where quoted prices in active markets are not readily available, fair value is determined using either quoted market prices for similar securities or using valuation techniques, which include discounted cash flow analysis and earnings multiples. Privately Issued Securities Privately issued debt and equity securities are valued using prices observed in recent market transactions, where available. Otherwise, fair value is derived from valuation models using a market or income approach. These models consider various factors, including projected cash flows, earnings, revenue and other third-party evidence, as available. The fair value of limited partnership investments is based on net asset values published by third-party fund managers. Prices from brokers and multi-contributor pricing sources are corroborated as part of our independent review process, which may include using valuation techniques or obtaining consensus or composite prices from other pricing services. We validate the estimates of fair value by independently obtaining multiple quotes for external market prices and input values. We review the approach taken by third-party vendors to ensure that vendors employ a valuation model that maximizes the use of observable inputs such as benchmark yields, bid-ask Loans In determining the fair value of our fixed rate performing loans, other than credit card loans, we discount the remaining contractual cash flows, adjusted for estimated prepayment, at market interest rates currently offered for loans with similar terms and risks. For credit card performing loans, fair value is considered to be equal to carrying value, due to their short-term nature. For floating rate performing loans, changes in interest rates have minimal impact on fair value since interest rates are repriced or reset frequently. On that basis, fair value is assumed to be equal to carrying value. The fair value of loans is not adjusted for the value of any credit protection purchased to mitigate credit risk. Derivative Instruments A number of valuation techniques are employed to estimate fair value, including discounted cash flow analysis, the Black-Scholes model, Monte Carlo simulation and other accepted market models. These independently validated models incorporate current market data for interest rates, foreign currency exchange rates, equity and commodity prices and indices, credit spreads, recovery rates, corresponding market volatility levels, spot prices, correlation levels and other market-based pricing factors. Option implied volatilities, an input into many valuation models, are either obtained directly from market sources or calculated from market prices. Multi-contributor pricing sources are used wherever possible. In determining the fair value of complex and customized derivatives, we consider all reasonably available information, including dealer and broker quotations, multi-contributor pricing sources and any relevant observable market inputs. Our model calculates fair value based on inputs specific to the type of contract, which may include stock prices, correlation for multiple assets, interest rates, foreign currency exchange rates, yield curves and volatilities. We calculate a credit valuation adjustment (“CVA”) to recognize the bilateral risk that either counterparty to a given derivative may not ultimately be able to fulfill its obligations. The CVA is derived from market-observed credit spreads or proxy credit spreads and our assessment of the net counterparty credit risk exposure, taking into account credit mitigants such as collateral, master netting agreements and novation to central counterparties. We also calculate a funding valuation adjustment (“FVA”) to recognize the implicit funding costs associated with over-the-counter Deposits In determining the fair value of our deposits, we incorporate the following assumptions: • For fixed rate, fixed maturity deposits, we discount the remaining contractual cash flows related to these deposits, adjusted for expected redemptions, at market interest rates currently offered for deposits with similar terms and risks. The fair value of our senior note liabilities and covered bonds is determined by referring to current market prices for similar instruments or using valuation techniques, such as discounted cash flow models that use market interest rate yield curves and funding spreads. • For fixed rate deposits with no defined maturities, we consider fair value to equal carrying value, since carrying value is equivalent to the amount payable on the reporting date. • For floating rate deposits, changes in interest rates have minimal impact on fair value, since deposits reprice to market frequently. On that basis, fair value is considered to equal carrying value. Certain of our structured note liabilities that have coupons or repayment terms linked to the performance of interest rates, foreign currencies, commodities or equity securities have been designated at fair value through profit or loss. The fair value of these structured notes is estimated using internally validated valuation models and incorporates observable market prices for identical or comparable securities, as well as other inputs, such as interest rate yield curves, option volatilities and foreign exchange rates, where appropriate. Where observable prices or inputs are not available, management judgment is required to determine the fair value by assessing other relevant sources of information, such as historical data and proxy information from similar transactions. Securities Sold But Not Yet Purchased The fair value of these obligations is based on the fair value of the underlying securities, which can be equity or debt securities. As these obligations are fully collateralized, the method used to determine fair value would be the same as that used for the relevant underlying equity or debt securities. Securitization and Structured Entities’ Liabilities The determination of the fair value of our securitization and structured entities’ liabilities is based on quoted market prices or quoted market prices for similar financial instruments, where available. Where quoted prices are not available, fair value is determined using valuation techniques, such as discounted cash flow models that maximize the use of observable inputs. Subordinated Debt The fair value of our subordinated debt is determined by referring to current market prices for the same or similar instruments. Financial Instruments with a Carrying Value Approximating Fair Value Short-term and Other Financial Instruments Carrying value is considered to be a reasonable estimate of fair value for our cash and cash equivalents. The carrying value of certain financial assets and liabilities, such as interest bearing deposits with banks, securities borrowed or purchased under resale agreements, customers’ liability under acceptances, other assets, acceptances, securities lent or sold under repurchase agreements and other liabilities, is a reasonable estimate of fair value due to their short-term nature or because they are frequently repriced to current market rates. Certain assets, including premises and equipment, goodwill and intangible assets, as well as shareholders’ equity, are not financial instruments and therefore no fair value has been determined for these items. |
Offsetting of Financial Assets and Financial Liabilities | Financial assets and financial liabilities are offset and the net amount is reported in our Consolidated Balance Sheet when there is a legally enforceable right to offset the recognized amounts and there is an intention to settle on a net basis, or realize the asset and settle the liability simultaneously. The following table presents the amounts that have been offset in our Consolidated Balance Sheet, including securities purchased under resale agreements, securities sold under repurchase agreements and derivative instruments, generally under a market settlement mechanism (e.g. an exchange or clearing house) where simultaneous net settlement can be achieved to eliminate credit and liquidity risk between counterparties. Also presented are amounts not offset in the Consolidated Balance Sheet related to transactions where a master netting agreement or similar arrangement is in place with a right to offset the amounts only in the event of default, insolvency or bankruptcy, or where the offset criteria are otherwise not met. |
Stock Option Plan | Stock Option Plan We maintain a Stock Option Plan for designated officers and employees. Options are granted at an exercise price equal to the closing price of our common shares on the day before the grant date. Stock options granted on or after December 2013 vest in equal tranches of 50% on the third and fourth anniversaries of their grant date. Options granted prior to December 2013 vest in tranches over a four-year period starting from their grant date. Each tranche is treated as a separate award with a different vesting period. In general, options expire 10 years from their grant date. We determine the fair value of stock options on their grant date and record this amount as compensation expense over the period that the stock options vest, with a corresponding increase to contributed surplus. When these stock options are exercised, we issue shares and record the amount of proceeds, together with the amount recorded in contributed surplus, in share capital. The estimated grant date fair value of stock options granted to employees who are eligible to retire is expensed at the date of grant. |
Pension and Other Employee Future Benefit Plans | Pension and Other Employee Future Benefit Plans We sponsor a number of arrangements globally that provide pension and other employee future benefits to our retired and current employees. The largest of these arrangements, by defined benefit obligation, are the primary defined benefit pension plans for employees in Canada and the United States and the primary other employee future benefit plan for employees in Canada. Pension arrangements include defined benefit pension plans, as well as supplementary arrangements that provide pension benefits in excess of statutory limits. Generally, under these plans we provide retirement benefits based on an employee’s years of service and average annual earnings over a period of time prior to retirement. Our pension and other employee future benefit expenses, recorded in employee compensation expense, mainly comprise the current service cost plus or minus the interest on net defined benefit assets or liabilities. In addition, we provide defined contribution pension plans to employees in some of our subsidiaries. The costs of these plans, recorded in employee compensation expense, are equal to our contributions to the plans. During the year ended October 31, 2018, we announced changes to our other employee future benefit plan for Canadian employees that will become mandatory for new retirees beginning January 1, 2021. Plan changes include an increase in the service requirement for eligibility and flexible benefits with employer premium caps. In 2018, we recorded a $277 million benefit from the remeasurement of the benefit liability in non-interest We also provide other employee future benefits, including health and dental care benefits and life insurance, for eligible current and retired employees. Short-term employee benefits, such as salaries, paid absences, bonuses and other benefits, are accounted for on an accrual basis over the period in which the employees provide the related services. Investment Policy The defined benefit pension plans are administered under a defined governance structure, with oversight resting with the Board of Directors. The plans are managed under a framework that considers both assets and liabilities in the development of an investment policy and in managing risk. Over the past several years, we have implemented a liability-driven investment strategy for the primary Canadian plan to enhance risk-adjusted returns while reducing the plan’s surplus volatility. This strategy has reduced the impact of the plan on our regulatory capital. The plans invest in asset classes that include equities, fixed income and alternative strategies, under established investment guidelines. Plan assets are diversified across asset classes and by geographic exposure. They are managed by asset management firms that are responsible for the selection of investment securities. Derivative instruments are permitted under policy guidelines and are generally used to hedge foreign currency exposures, manage interest rate exposures or replicate the return of an asset. Asset Allocations The asset allocation ranges and weighted-average actual asset allocations of our primary pension plans, based on fair market values at October 31, are as follows: Pension benefit plans Target range Actual 2019 Actual 2018 Equities 20% – 50% 32% 37% Fixed income investments 25% – 55% 51% 46% Alternative strategies 15% – 45% 17% 17% Our pension and other employee future benefit plan assets are measured at fair value on a recurring basis. Risk Management The defined benefit pension plans are exposed to various risks, including market risk (interest rate, equity and foreign currency risks), credit risk, operational risk, surplus risk and longevity risk. We follow a number of approaches to monitor and actively manage these risks, including: • monitoring surplus-at-risk, • stress testing and scenario analyses to evaluate the volatility of the plans’ financial positions and any potential impact on the bank; • hedging of currency exposures and interest rate risk within policy limits; • controls related to asset mix allocations, geographic allocations, portfolio duration, credit quality of debt securities, sector guidelines, issuer/counterparty limits and others; and • ongoing monitoring of exposures, performance and risk levels. Pension and Other Employee Future Benefit Liabilities Our actuaries perform valuations of our defined benefit obligations for pension and other employee future benefits as at October 31 of each year using the projected unit credit method based on management’s assumptions about discount rates, rates of compensation increase, retirement age, mortality and health care cost trend rates. The discount rates for the primary Canadian and U.S. pension and other employee future benefit plans were selected based on the yields of high-quality AA rated corporate bonds with terms matching the plans’ cash flows. The fair value of plan assets is deducted from the defined benefit obligation to determine the net defined benefit asset or liability. For defined benefit pension plans that are in a net defined benefit asset position, the recognized asset is limited to the present value of economic benefits available in the form of future refunds from the plan or reductions in future contributions to the plan (the “asset ceiling”). Changes in the asset ceiling are recognized in other comprehensive income. Components of the change in our net defined benefit assets or liabilities and our pension and other employee future benefit expense are as follows: Current service cost Interest on net defined benefit asset or liability Actuarial gains and losses Plan amendments Settlements Funding of Pension and Other Employee Future Benefit Plans We fund our defined benefit pension plans in Canada and the United States in accordance with statutory requirements, and the assets in these plans are used to pay benefits to retirees and other employees. Some groups of employees are also eligible to make voluntary contributions in order to receive enhanced benefits. Our supplementary pension plan in Canada is funded, while the supplementary pension plan in the U.S. is unfunded. Our other employee future benefit plans in Canada and the United States are either funded or unfunded. Benefit payments related to these plans are paid either through the respective plan or directly by us. We measure the fair value of plan assets for our plans in Canada and the United States as at October 31. In addition to actuarial valuations for accounting purposes, we are required to prepare valuations for determining our minimum funding requirements for our pension arrangem |
Income Taxes | We report our provision for income taxes in our Consolidated Statement of Income based upon transactions recorded in our consolidated financial statements regardless of when they are recognized for income tax purposes, with the exception of repatriation of retained earnings from our subsidiaries, as noted below. In addition, we record an income tax expense or benefit in other comprehensive income or directly in equity when the taxes relate to amounts recorded in other comprehensive income or equity. For example, income tax expense (recovery) on hedging gains (losses) related to our net investment in foreign operations is recorded in our Consolidated Statement of Comprehensive Income as part of n t Current tax is the amount of income tax recoverable (payable) in respect of the taxable loss (profit) for a period. Deferred tax is recognized on temporary differences between the carrying amounts of assets and liabilities for accounting and tax purposes. Deferred income tax assets and liabilities are measured at the tax rates expected to apply when temporary differences reverse. Changes in deferred income tax assets and liabilities related to a change in tax rates are recorded in income in the period the tax rate is substantively enacted, except to the extent that the tax arises from a transaction or event which is recognized either in other comprehensive income or directly in equity. Current and deferred taxes are offset only when they are levied by the same tax authority, on the same entity or group of entities, and when there is a legal right to offset. Included in deferred income tax assets is $26 million ($42 million in 2018) related to Canadian tax loss carryforwards that will expire in 2037, $289 million ($962 million in 2018) related to both U.S. tax loss carryforwards and tax credits that will expire in various amounts in U.S. taxation years from 2020 through 2039 and $19 million ($17 million in 2018) related to United Kingdom (U.K.) tax loss carryforwards that are available for use indefinitely against relevant profits generated in the U.K. On the evidence available, including management projections of income, we believe that it is probable there will be sufficient taxable income generated by our business operations to support these deferred tax assets. The amount of tax on temporary differences, unused tax losses and unused tax credits for which no deferred tax asset is recognized in our Consolidated Balance Sheet as at October 31, 2019 is $127 million ($132 million in 2018), of which $3 million ($8 million in 2018) is scheduled to expire within five years. Deferred tax assets have not been recognized in respect of these items because it is not probable that these assets will be realized. Income that we earn through our foreign subsidiaries is generally taxed in the foreign country in which they operate. Income that we earn through our foreign branches is also generally taxed in the foreign country in which they operate. Canada also taxes the income we earn through foreign branches and a credit is allowed for certain foreign taxes paid on such income. Repatriation of earnings from certain foreign subsidiaries would require us to pay tax on certain of these earnings. As repatriation of such earnings is not planned in the foreseeable future, we have not recorded a related deferred income tax liability. The taxable temporary differences associated with the repatriation of earnings from investments in certain subsidiaries, branches, associates and interests in joint ventures for which deferred tax liabilities have not been recognized totalled $15 billion as at October 31, 2019 ($13 billion in 2018). |
Earnings per share | Basic earnings per share is calculated by dividing net income attributable to equity holders of the bank, after deducting dividends on preferred shares and distributions on other equity instruments, by the daily average number of fully paid common shares outstanding throughout the year. Diluted earnings per share is calculated in the same manner, with further adjustments made to reflect the dilutive impact of instruments convertible into our common shares. |
Provisions and Contingent Liabilities | Provisions and Contingent Liabilities Provisions are recognized when we have a legal or constructive obligation as a result of past events, such as contractual commitments, legal or other obligations for which we can reliably estimate the obligation, and it is probable we will be required to settle the obligation. We recognize as a provision our best estimate of the amount required to settle the obligations as of the balance sheet date, taking into account the risks and uncertainties surrounding the obligations. |
Operating Groups | Operating Groups We conduct our business through three operating groups, each of which has a distinct mandate. We determine our operating groups based on our management structure and therefore these groups, and the results attributed to them, may not be comparable with those of other financial services companies. We evaluate the performance of our groups using reported and adjusted measures, such as net income, revenue growth, return on equity, and non-interest expense-to-revenue Effective with the adoption of IFRS 9, we allocate the provision for credit losses on performing loans and the related allowance to operating groups. In 2017 and prior years, the collective provision and allowance were held in Corporate Services. Personal and Commercial Banking Personal and Commercial Banking (“P&C”) is comprised of two operating segments: Canadian Personal and Commercial Banking and U.S. Personal and Commercial Banking. Canadian Personal and Commercial Banking Canadian Personal and Commercial Banking (“Canadian P&C”) provides a full range of financial products and services to eight million customers. Personal Banking provides financial solutions for everyday banking, financing, investing, credit card and creditor insurance needs. Commercial Banking provides our small business and commercial banking customers with a broad suite of integrated commercial and capital markets products, as well as financial advisory services. U.S. Personal and Commercial Banking U.S. Personal and Commercial Banking (“U.S. P&C”) offers a broad range of products and services. Our retail and small and mid-sized in-depth BMO Wealth Management BMO’s group of wealth management businesses serves a full range of client segments, from mainstream to ultra high net worth and institutional, with a broad offering of wealth management products and services, including insurance products. Wealth Management (“BMO WM”) is a global business with an active presence in markets across Canada, the United States, EMEA and Asia. BMO Capital Markets BMO Capital Markets (“BMO CM”) is a North American-based financial services provider offering a complete range of products and services to corporate, institutional and government clients. Through our Investment and Corporate Banking and Global Markets lines of business, we operate in 33 locations around the world, including 19 offices in North America. Corporate Services Corporate Services consists of Corporate Units and Technology and Operations (“T&O”). Corporate Units provide enterprise-wide expertise, governance and support in a variety of areas, including strategic planning, risk management, finance, legal and regulatory compliance, human resources, communications, marketing, real estate, procurement, data and analytics, and innovation. T&O manages, maintains and provides governance of information technology, cyber security and operations services for the bank. The costs of these Corporate Units and T&O services are largely transferred to the three operating groups (P&C, BMO WM and BMO CM), with any remaining amounts retained in Corporate Services results. As such, Corporate Services results largely reflect the impact of residual treasury-related activities, the elimination of taxable equivalent adjustments, residual unallocated expenses and certain acquisition integration costs and restructuring costs. Basis of Presentation The results of these operating groups are based on our internal financial reporting systems. The accounting policies used in these segments are generally consistent with those followed in the preparation of our consolidated financial statements, as disclosed in Note 1 and throughout the consolidated financial statements. Income taxes presented below may not be reflective of taxes paid in each jurisdiction in which we operate. Income taxes are generally applied to each segment based on a statutory tax rate and may be adjusted for items and activities specific to each segment. A notable accounting measurement difference is the taxable equivalent basis adjustment, as described below. Periodically, certain business lines and units within the business lines are transferred between client and corporate support groups to more closely align our organizational structure with our strategic priorities. In addition, revenue and expense allocations are updated to more accurately align with current experience. Results for prior periods are restated to conform with the current year’s presentation. Taxable Equivalent Basis We analyze revenue on a taxable equivalent basis (“teb”) at the operating group level. Revenue and the provision for income taxes are increased on tax-exempt before-tax tax-exempt Inter-Group Allocations Various estimates and allocation methodologies are used in the preparation of the operating groups’ financial information. Overhead expenses are allocated to operating groups using allocation formulas applied on a consistent basis. Operating group net interest income reflects internal funding charges and credits on the groups’ assets, liabilities and capital, at market rates, taking into account relevant terms and currency considerations. The offset of the net impact of these charges and credits is reflected in Corporate Services. These inter-group allocations are also applied to the geographic segmentation. |
Related Party Transactions | Related parties include subsidiaries, associates, joint ventures, employee future benefit plans and key management personnel and their close family members. Close family members include spouses, common-law |
IFRS 7 Disclosure (Tables)
IFRS 7 Disclosure (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Schedule of Total Non Trading Credit Risk Exposures | Total non-trading exposures at default by industry sector, excluding the impact of collateral, as at October 31, 2019 and 2018, based on the Basel III classifications, are as follows: (Canadian $ in millions) Drawn Commitments (undrawn) OTC derivatives Other off-balance sheet items Repo-style transactions Total (1) 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Financial institutions 117,959 102,552 24,010 21,741 974 1,649 6,402 5,016 203,084 177,094 352,429 308,052 Governments 58,051 44,552 1,665 2,118 9 1 894 667 8,452 8,401 69,071 55,739 Manufacturing 26,266 22,580 16,581 13,490 12 10 1,494 1,396 – – 44,353 37,476 Real estate 37,146 31,534 8,948 8,170 1 1 861 820 – – 46,956 40,525 Retail trade 22,529 19,961 3,974 3,617 – – 601 559 – – 27,104 24,137 Service industries 46,612 39,067 13,304 12,666 12 1 2,996 2,389 – – 62,924 54,123 Wholesale trade 16,843 14,659 5,273 4,531 1 2 564 436 – – 22,681 19,628 Oil and gas 13,406 9,131 11,302 10,410 – – 1,802 1,804 – – 26,510 21,345 Individual 198,214 190,688 51,433 47,586 – – 115 126 – – 249,762 238,400 Others (2) 40,573 35,617 19,814 18,197 68 88 6,866 6,474 – – 67,321 60,376 Total exposure at default 577,599 510,341 156,304 142,526 1,077 1,752 22,595 19,687 211,536 185,495 969,111 859,801 (1) Credit exposure excluding equity, securitization, trading book and other assets such as non-significant investments, goodwill, deferred tax asset and intangibles. (2) Includes industries having a total exposure of less than 2%. |
Summary of Loan Maturities and Interest Rate Sensitivity | The following table presents gross loans and acceptances by contractual maturity and by country of ultimate risk: (Canadian $ in millions) 1 year or less Over 1 year to 5 years Over 5 years Total 2019 2018 2019 2018 2019 2018 2019 2018 Canada Consumer 58,580 54,375 113,162 109,991 4,432 4,199 176,174 168,565 Commercial and corporate 65,534 57,530 16,591 14,862 1,973 1,750 84,098 74,142 Commercial real estate 7,928 7,397 11,647 10,143 2,298 1,275 21,873 18,815 United States 37,867 33,688 87,443 73,470 33,423 25,955 158,733 133,113 Other countries 9,214 8,628 996 658 449 294 10,659 9,580 Total 179,123 161,618 229,839 209,124 42,575 33,473 451,537 404,215 |
Summary of Net Loans and Acceptances by Interest Rate Sensitivity | The following table presents net loans and acceptances by interest rate sensitivity: (Canadian $ in millions) 2019 2018 Fixed rate 217,002 193,661 Floating rate 209,092 190,330 Non-interest sensitive (1) 23,593 18,585 Total 449,687 402,576 (1) Non-interest sensitive is comprised of customers’ liability under acceptances. Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). |
Summary Total Trading Value at Risk (VaR) Summary | As at or for the year ended October 31 (pre-tax Canadian $ equivalent in millions) 2019 2018 Year-end Average High Low Year-end Average High Low Commodity VaR 1.0 1.4 4.9 0.6 0.7 0.9 13.6 0.3 Equity VaR 3.0 4.6 12.6 2.5 4.4 4.4 7.8 2.9 Foreign exchange VaR 0.5 0.5 1.4 0.2 0.5 0.6 2.2 0.1 Interest rate VaR 9.9 6.5 10.6 4.3 6.1 5.9 8.7 3.6 Credit VaR 5.1 5.8 9.2 4.0 7.4 2.6 7.4 1.5 Diversification (10.9 ) (9.8 ) nm nm (8.3 ) (6.8 ) nm nm Total Trading VaR 8.6 9.0 17.2 5.8 10.8 7.6 17.5 4.7 Total Trading SVaR 19.2 31.7 69.6 16.5 56.3 26.8 56.3 16.6 (1) One-day measure using a 99% confidence interval. Gains are presented in brackets and losses are presented as positive numbers. (2) Stressed VaR is produced weekly. nm – not meaningful |
Structural Interest Rate Sensitivity | Structural Interest Rate Sensitivity (1) As at October 31, 2019 As at October 31, 2018 (Pre-tax Canadian $ equivalent in millions) Economic value Earnings sensitivity Economic value Earnings sensitivity 100 basis point increase (883.4 ) 46.6 (1,079.2 ) 136.5 100 basis point decrease 215.6 (80.3 ) 626.5 (304.1 ) (1) Losses are presented in brackets and gains are presented as positive numbers. |
Summary of Remaining Contractual Maturity | 2019 (Canadian $ in millions) 0 to 1 month 1 to 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 5 years Over 5 years No maturity Total On-Balance Sheet Financial Instruments Assets Cash and cash equivalents 47,844 – – – – – – – 959 48,803 Interest bearing deposits with banks 4,088 1,893 1,081 714 211 – – – – 7,987 Securities 2,680 3,420 2,797 3,508 4,670 15,001 46,687 66,005 44,670 189,438 Securities borrowed or purchased under resale agreements 75,936 21,562 4,819 859 518 – 310 – – 104,004 Loans Residential mortgages 1,691 2,059 5,285 6,818 7,138 22,309 68,143 10,297 – 123,740 Consumer instalment and other personal 645 519 991 1,272 1,502 4,823 22,391 11,947 23,646 67,736 Credit cards – – – – – – – – 8,859 8,859 Business and government 12,490 7,072 6,168 7,760 6,547 24,687 87,486 20,331 55,068 227,609 Allowance for credit losses – – – – – – – – (1,850 ) (1,850 ) Total loans and acceptances, net of allowance 14,826 9,650 12,444 15,850 15,187 51,819 178,020 42,575 85,723 426,094 Other Assets Derivative instruments 1,209 1,867 877 830 911 2,375 5,095 8,980 – 22,144 Customers’ liability under acceptances 20,694 2,562 173 159 5 – – – – 23,593 Other 1,951 593 245 12 5 7 5 4,475 22,839 30,132 Total other assets 23,854 5,022 1,295 1,001 921 2,382 5,100 13,455 22,839 75,869 Total Assets 169,228 41,547 22,436 21,932 21,507 69,202 230,117 122,035 154,191 852,195 2019 (Canadian $ in millions) 0 to 1 1 to 3 3 to 6 6 to 9 9 to 12 1 to 2 2 to 5 Over 5 years No maturity Total Liabilities and Equity Deposits (1) Banks 12,177 4,187 1,215 319 1,174 – – 201 4,543 23,816 Business and government 21,088 28,511 21,209 22,334 18,023 22,983 49,292 11,759 147,958 343,157 Individuals 3,607 8,932 12,080 13,390 15,706 11,418 13,257 2,031 120,749 201,170 Total deposits 36,872 41,630 34,504 36,043 34,903 34,401 62,549 13,991 273,250 568,143 Other liabilities Derivative instruments 1,329 2,574 1,240 970 1,032 2,985 6,798 6,670 – 23,598 Acceptances 20,694 2,562 173 159 5 – – – – 23,593 Securities sold but not yet purchased 26,253 – – – – – – – – 26,253 Securities lent or sold under repurchase agreements 83,681 1,459 760 450 – – 306 – – 86,656 Current tax liabilities – – – – – – – – 55 55 Deferred tax liabilities – – – – – – – – 60 60 Securitization and structured entities’ liabilities 1 1,655 1,340 1,033 1,038 5,350 13,779 2,963 – 27,159 Other 12,325 3,188 33 29 74 537 3,596 2,406 16,419 38,607 Total other liabilities 144,283 11,438 3,546 2,641 2,149 8,872 24,479 12,039 16,534 225,981 Subordinated debt – – – – – – – 6,995 – 6,995 Total Equity – – – – – – – – 51,076 51,076 Total Liabilities and Equity 181,155 53,068 38,050 38,684 37,052 43,273 87,028 33,025 340,860 852,195 (1) Deposits payable on demand and payable after notice have been included under no maturity. 2019 (Canadian $ in millions) 0 to 1 month 1 to 3 months 3 to 6 months 6 to 9 months 9 to 12 months 1 to 2 years 2 to 5 years Over No maturity Total Off-Balance Sheet Commitments Commitments to extend credit (1) 1,868 3,777 5,698 8,832 12,511 21,574 102,113 5,643 – 162,016 Backstop liquidity facilities – – – – – – 5,550 – – 5,550 Operating leases 32 66 98 97 96 361 931 2,119 – 3,800 Securities lending 4,102 – – – – – – – – 4,102 Purchase obligations 53 98 138 133 137 111 187 69 – 926 (1) Commitments to extend credit exclude personal line s Material presented in a blue-tinted font above is an integral part of the 2019 audited annual consolidated financial statements (refer to page 68). 2018 (Canadian $ in millions) 0 to 1 1 to 3 3 to 6 6 to 9 9 to 12 1 to 2 years 2 to 5 years Over No maturity Total On-Balance Sheet Financial Instruments Assets Cash and cash equivalents 41,162 – – – – – – – 980 42,142 Interest bearing deposits with banks 4,964 1,717 1,037 457 112 18 – – – 8,305 Securities 4,522 4,283 5,049 7,749 4,943 11,854 32,480 56,004 54,051 180,935 Securities borrowed or purchased under resale agreements 67,804 12,732 2,490 1,781 191 53 – – – 85,051 Loans Residential mortgages 1,782 1,848 4,343 6,306 4,769 24,522 64,636 11,414 – 119,620 Consumer instalment and other personal 607 440 1,026 1,143 943 5,414 19,910 9,812 23,930 63,225 Credit cards – – – – – – – – 8,329 8,329 Business and government 13,088 5,921 7,126 6,779 6,218 19,543 75,099 12,247 48,435 194,456 Allowance for credit losses – – – – – – – – (1,639 ) (1,639 ) Total loans and acceptances, net of allowance 15,477 8,209 12,495 14,228 11,930 49,479 159,645 33,473 79,055 383,991 Other Assets Derivative instruments 2,033 3,379 1,638 1,002 797 3,333 5,816 7,424 – 25,422 Customers’ liability under acceptances 16,529 1,988 65 3 – – – – – 18,585 Other 1,740 506 189 26 6 17 20 4,824 21,534 28,862 Total other assets 20,302 5,873 1,892 1,031 803 3,350 5,836 12,248 21,534 72,869 Total Assets 154,231 32,814 22,963 25,246 17,979 64,754 197,961 101,725 155,620 773,293 2018 (Canadian $ in millions) 0 to 1 1 to 3 3 to 6 6 to 9 9 to 12 1 to 2 2 to 5 Over No maturity Total Liabilities and Equity Deposits (1) Banks 16,966 6,032 1,200 227 106 – – – 3,376 27,907 Business and government 23,524 32,231 22,713 15,893 8,629 22,418 48,684 11,809 126,276 312,177 Individuals 2,582 6,455 7,953 7,619 10,536 11,736 16,327 2,582 115,054 180,844 Total deposits 43,072 44,718 31,866 23,739 19,271 34,154 65,011 14,391 244,706 520,928 Other liabilities Derivative instruments 1,496 2,445 1,610 904 631 3,741 6,092 6,710 – 23,629 Acceptances 16,529 1,988 65 3 – – – – – 18,585 Securities sold but not yet purchased 28,804 – – – – – – – – 28,804 Securities lent or sold under repurchase agreements 63,496 2,249 8 931 – – – – – 66,684 Current tax liabilities – – – – – – – – 50 50 Deferred tax liabilities – – – – – – – – 74 74 Securitization and structured entities’ liabilities 1,044 1,084 475 512 588 4,912 13,398 3,038 – 25,051 Other 8,548 5,568 44 34 184 789 4,455 1,905 15,458 36,985 Total other liabilities 119,917 13,334 2,202 2,384 1,403 9,442 23,945 11,653 15,582 199,862 Subordinated debt – – – – – – – 6,782 – 6,782 Total Equity – – – – – – – – 45,721 45,721 Total Liabilities and Equity 162,989 58,052 34,068 26,123 20,674 43,596 88,956 32,826 306,009 773,293 (1) Deposits payable on demand and payable after notice have been included under no maturity. 2018 (Canadian $ in millions) 0 to 1 1 to 3 3 to 6 6 to 9 9 to 12 1 to 2 2 to 5 Over No maturity Total Off-Balance Sheet Commitments Commitments to extend credit (1) 1,472 3,610 6,892 9,620 11,345 21,056 84,295 3,144 – 141,434 Backstop liquidity facilities – – – – – – 5,627 – – 5,627 Operating leases 34 70 99 101 100 358 770 1,210 – 2,742 Securities lending 4,939 – – – – – – – – 4,939 Purchase obligations 56 388 153 155 158 615 186 82 – 1,793 (1) Commitments to extend credit exclude personal line s |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Impacts of Applying IFRS 15 on Prior Period Consolidated Statement of Income | The following table summarizes the impacts of applying IFRS 15 on our prior period Consolidated Statement of Income: (Canadian $ in millions) 2018 2017 Increase (decrease) in Non-Interest Securities commissions and fees (4 ) (5 ) Deposit and payment service charges (10 ) (14 ) Card fees (136 ) (150 ) Investment management and custodial fees 7 5 Underwriting and advisory fees 7 8 Other 4 3 (132 ) (153 ) Non-Interest Employee compensation 2 1 Travel and business development (154 ) (153 ) Professional fees 8 6 Other 8 8 (136 ) (138 ) Provision for income taxes 1 (4 ) Net Income 3 (11 ) |
Cash and Interest Bearing Dep_2
Cash and Interest Bearing Deposits with Banks (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Disclosure of Cash and Interest Bearing Deposits with Banks | (Canadian $ in millions) 2019 2018 Cash and deposits with banks (1) 47,598 40,738 Cheques and other items in transit, net 1,205 1,404 Total cash and cash equivalents 48,803 42,142 (1) Includes deposits with the Bank of Canada, the U.S. Federal Reserve and other central banks. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Fair Value Measurement | (Canadian $ in millions, except as noted) Term to maturity 2019 2018 Within 1 1 to 3 3 to 5 5 to 10 Over 10 No Total Total Trading Securities Issued or guaranteed by: Canadian federal government 1,860 3,302 1,414 829 925 – 8,330 10,320 Canadian provincial and municipal governments 921 1,122 735 1,170 3,579 – 7,527 8,702 U.S. federal government 859 3,677 2,432 1,620 175 – 8,763 9,517 U.S. states, municipalities and agencies 232 124 52 195 71 – 674 1,216 Other governments 437 719 296 133 – – 1,585 1,412 NHA MBS, U.S. agency MBS and CMO (1) 226 171 208 203 10,238 – 11,046 9,184 Corporate debt 1,293 1,613 1,408 1,297 2,107 – 7,718 9,198 Trading loans 7 31 41 24 – – 103 199 Corporate equity – – – – – 40,157 40,157 49,949 Total trading securities 5,835 10,759 6,586 5,471 17,095 40,157 85,903 99,697 FVTPL Securities Issued or guaranteed by: Canadian federal government 392 4 2 3 116 – 517 431 Canadian provincial and municipal governments 12 10 5 53 1,199 – 1,279 946 U.S. federal government 48 – – – – – 48 69 Other governments – – 49 – – – 49 – NHA MBS, U.S. agency MBS and CMO (1) – 5 – – – – 5 7 Corporate debt 578 71 128 1,083 6,357 – 8,217 6,820 Corporate equity – – – – – 3,589 3,589 3,338 Total FVTPL securities 1,030 90 184 1,139 7,672 3,589 13,704 11,611 FVOCI Securities Issued or guaranteed by: Canadian federal government Amortized cost 5,618 2,090 3,059 1,109 – – 11,876 12,884 Fair value 5,617 2,098 3,106 1,123 – – 11,944 12,805 Yield (%) 1.60 1.48 2.01 1.97 – – 1.72 1.64 Canadian provincial and municipal governments Amortized cost 1,406 1,720 2,428 353 – – 5,907 6,896 Fair value 1,406 1,740 2,503 363 – – 6,012 6,862 Yield (%) 1.67 2.32 2.63 3.05 – – 2. 34 1.90 U.S. federal government Amortized cost 5 3,770 5,095 6,493 – – 15,363 17,403 Fair value 8 3,820 5,222 6,925 – – 15,975 16,823 Yield (%) 1.90 2.23 2.15 2.74 – – 2.42 2.22 U.S. states, municipalities and agencies Amortized cost 389 703 961 1,036 1,002 – 4,091 3,694 Fair value 389 709 991 1,065 1,007 – 4,161 3,655 Yield (%) 1.93 2.21 2.57 2.67 3.00 – 2.58 2.42 Other governments Amortized cost 947 2,691 3,466 75 – – 7,179 4,818 Fair value 951 2,727 3,582 75 – – 7,335 4,790 Yield (%) 1.27 2.53 2.56 3.17 – – 2.38 2.39 NHA MBS (1) Amortized cost 29 409 1,515 – – – 1,953 2,382 Fair value 30 411 1,529 – – – 1,970 2,370 Yield (%) 2.13 1.71 2.31 – – – 2.18 1.98 U.S. agency MBS and CMO (1) Amortized cost 12 58 146 2,361 9,389 – 11,966 11,811 Fair value 13 58 150 2,416 9,393 – 12,030 11,317 Yield (%) 2.16 2.28 2.95 2.81 1.96 – 2.14 2.33 Corporate debt Amortized cost 1,196 2,336 1,312 35 20 – 4,899 3,783 Fair value 1,197 2,378 1,374 37 21 – 5,007 3,756 Yield (%) 1.28 2.76 3.06 3.09 3.32 – 2.48 2.67 Corporate equity Cost – – – – – 79 79 62 Fair value – – – – – 81 81 62 Total cost or amortized cost 9,602 13,777 17,982 11,462 10,411 79 63,313 63,733 Total fair value 9,611 13,941 18,457 12,004 10,421 81 64,515 62,440 Yield (%) 1. 55 2.26 2.38 2.69 2.06 – 2.2 3 2.13 Amortized Cost Securities Issued or guaranteed by: Canadian federal government Amortized cost – 701 3,018 813 – – 4,532 – Fair value – 701 3,021 812 – – 4,534 – Canadian provincial and municipal governments Amortized cost 290 399 1,460 1,404 – – 3,553 832 Fair value 291 399 1,481 1,405 – – 3,576 841 U.S. federal government Amortized cost – 2,236 1,339 2,638 – – 6,213 – Fair value – 2,245 1,339 2,630 – – 6,214 – Other governments Amortized cost 3 667 334 45 – – 1,049 10 Fair value 3 667 334 45 – – 1,049 10 NHA MBS, U.S. agency MBS and CMO (1) Amortized cost 131 366 642 2,073 5,062 – 8,274 5,552 Fair value 131 368 654 2,116 5,129 – 8,398 5,346 Corporate debt Amortized cost 175 306 201 110 59 – 851 91 Fair value 175 305 202 110 59 – 851 91 Total cost or amortized cost 599 4,675 6,994 7,083 5,121 – 24,472 6,485 Total fair value 600 4,685 7,031 7,118 5,188 – 24,622 6,288 Other Securities Carrying value – – – – – 844 844 702 Total carrying value or amortized cost of securities 17,066 29,301 31,746 25,155 40,299 44,669 188,236 182,228 Total value of securities 17,075 29,465 32,221 25,697 40,309 44,671 189,438 180,935 Total by Currency Canadian dollar 13,507 10,843 13,417 7,314 14,102 26,722 85,905 82,767 U.S. dollar 2,691 18,392 18,656 18,373 26,204 16,257 100,573 96,266 Other currencies 877 230 148 10 3 1,692 2,960 1,902 Total securities 17,075 29,465 32,221 25,697 40,309 44,671 189,438 180,935 (1) These amounts are supported by insured mortgages or issued by U.S. agencies and government-sponsored enterprises. NHA refers to the National Housing Act, MBS refers to mortgage-backed securities and CMO refers to collateralized mortgage obligations. Yields in the table above are calculated using the cost of the security and the contractual interest rate associated with each security, adjusted for any amortization of premiums and discounts. Tax effects are not taken into consideration. The term to maturity included in the table above is based on the contractual maturity date of the security. Actual maturities could differ, as issuers may have the right to call or prepay obligations. |
Schedule of Unrealized Gains and Losses on Available-for-Sale Securities | Unrealized Gains and Losses on FVOCI Securities The following table summarizes the unrealized gains and losses: (Canadian $ in millions) 2019 2018 Amortized Gross Gross Fair Amortized Gross Gross Fair Issued or guaranteed by: Canadian federal government 11,876 72 4 11,944 12,884 1 80 12,805 Canadian provincial and municipal governments 5,907 106 1 6,012 6,896 8 42 6,862 U.S. federal government 15,363 617 5 15,975 17,403 4 584 16,823 U.S. states, municipalities and agencies 4,091 74 4 4,161 3,694 16 55 3,655 Other governments 7,179 158 2 7,335 4,818 2 30 4,790 NHA MBS 1,953 18 1 1,970 2,382 6 18 2,370 U.S. agency MBS and CMO 11,966 106 42 12,030 11,811 2 496 11,317 Corporate debt 4,899 110 2 5,007 3,783 6 33 3,756 Corporate equity 79 2 – 81 62 – – 62 Total 63,313 1,263 61 64,515 63,733 45 1,338 62,440 |
Summary of Interest, Dividend and Fee Income | Interest, dividend and fee income has been included in our Consolidated Statement of Income as follows, excluding other securities and trading securities. Related income for trading securities is included under Trading-Related Revenue in Note 17. (Canadian $ in millions) 2019 2018 2017 FVTPL 34 16 na FVOCI 1,585 1,118 na Amortized cost 268 172 na Available-for-sale na na 662 Held-to-maturity na na 150 Total 1,887 1,306 812 na – not applicable due to IFRS 9 adoption. |
Summary of Non Interest Revenue | Net gains and losses from securities, excluding net realized and unrealized gains on trading securities, have been included in our Consolidated Statement of Income as follows: (Canadian $ in millions) 2019 2018 2017 Non-Interest FVTPL securities 164 93 na FVOCI securities (1) Gross realized gains 209 363 228 Gross realized (losses) (123 ) (216 ) (99 ) Other securities, net realized and unrealized gains – – 49 Impairment losses (1 ) (1 ) (7 ) Securities gains, other than trading (2) 249 239 171 (1) Realized gains (losses) are net of unrealized gains (losses) on related hedge contracts. Fiscal 2017 represents available-for-sale (2) The following amounts of income related to our insurance operations were included in non-interest Unrealized gains and losses on trading securities are included in trading-related revenue in Note 17. na – not applicable due to IFRS 9 adoption. Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Credit Risk Exposures for Loans Carried at Amortized Cost or FVTPL | The following tables set out our credit risk exposure for all loans carried at amortized cost , or (Canadian $ in millions) October 31, 2019 Stage 1 Stage 2 Stage 3 Total Loans: Residential mortgages Exceptionally low – – – – Very low 79,011 242 – 79,253 Low 20,853 2,821 – 23,674 Medium 13,651 4,578 – 18,229 High 124 397 – 521 Not rated 1,531 118 – 1,649 Impaired – – 414 414 Allowance for credit losses 15 32 17 64 Carrying amount 115,155 8,124 397 123,676 Loans: Consumer instalment and other personal Exceptionally low 21,023 25 – 21,048 Very low 16,491 194 – 16,685 Low 9,894 346 – 10,240 Medium 10,510 4,264 – 14,774 High 397 1,423 – 1,820 Not rated 2,594 107 – 2,701 Impaired – – 468 468 Allowance for credit losses 82 318 136 536 Carrying amount 60,827 6,041 332 67,200 Loans: Credit cards Exceptionally low 2,418 – – 2,418 Very low 1,214 16 – 1,230 Low 970 158 – 1,128 Medium 2,020 876 – 2,896 High 140 440 – 580 Not rated 606 1 – 607 Impaired – – – – Allowance for credit losses 43 193 – 236 Carrying amount 7,325 1,298 – 8,623 Loans: Business and government (1) Acceptable Investment grade 134,587 1,028 – 135,615 Sub-investment 96,731 11,553 – 108,284 Watchlist – 5,556 – 5,556 Impaired – – 1,747 1,747 Allowance for credit losses 263 441 310 1,014 Carrying amount 231,055 17,696 1,437 250,188 Commitments and financial guarantee contracts Acceptable Investment grade 134,920 884 – 135,804 Sub-investment 45,178 6,435 – 51,613 Watchlist – 2,133 – 2,133 Impaired – – 324 324 Allowance for credit losses 119 103 22 244 Carrying amount (2) 179,979 9,349 302 189,630 (1) Includes customers’ liability under acceptances. (2) Represents the total contractual amounts of undrawn credit facilities and other off - (Canadian $ in millions) October 31, 2018 Stage 1 Stage 2 Stage 3 Total Loans: Residential mortgages Exceptionally low – – – – Very low 76,314 125 – 76,439 Low 18,975 2,479 – 21,454 Medium 12,621 3,765 – 16,386 High 90 445 – 535 Not rated 4,250 181 – 4,431 Impaired – – 375 375 Allowance for credit losses 20 37 19 76 Carrying amount 112,230 6,958 356 119,544 Loans: Consumer instalment and other personal Exceptionally low 20,236 20 – 20,256 Very low 13,364 222 – 13,586 Low 12,581 364 – 12,945 Medium 7,707 4,153 – 11,860 High 357 1,427 – 1,784 Not rated 2,105 168 – 2,273 Impaired – – 521 521 Allowance for credit losses 83 312 143 538 Carrying amount 56,267 6,042 378 62,687 Loans: Credit cards Exceptionally low 2,403 4 – 2,407 Very low 1,140 11 – 1,151 Low 943 107 – 1,050 Medium 1,742 874 – 2,616 High 108 428 – 536 Not rated 568 1 – 569 Impaired – – – – Allowance for credit losses 39 191 – 230 Carrying amount 6,865 1,234 – 8,099 Loans: Business and government (1) Acceptable Investment grade 109,774 2,148 – 111,922 Sub-investment 88,348 7,308 – 95,656 Watchlist – 4,423 – 4,423 Impaired – – 1,040 1,040 Allowance for credit losses 232 355 208 795 Carrying amount 197,890 13,524 832 212,246 Commitments and financial guarantee contracts Acceptable Investment grade 116,108 1,722 – 117,830 Sub-investment 44,895 3,426 – 48,321 Watchlist – 1,650 – 1,650 Impaired – – 242 242 Allowance for credit losses 108 96 27 231 Carrying amount (2) 160,895 6,702 215 167,812 (1) Includes customers’ liability under acceptances. (2) Represents the total contractual amounts of undrawn credit facilities and other off - Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Summary of Continuity in Loss Allowance by Each Product Type | The following table shows the continuity in the loss allowance, by product type, for the year ended October 31, 2019: (Canadian $ in millions) For the year ended Stage 1 Stage 2 Stage 3 Total Loans: Residential mortgages Balance as at October 31, 2018 20 38 44 102 Transfer to Stage 1 (1) 27 (25 ) (2 ) – Transfer to Stage 2 (1) (2 ) 7 (5 ) – Transfer to Stage 3 (1) – (8 ) 8 – Net remeasurement of loss allowance (2) (35 ) 26 15 6 Loan originations 7 – – 7 Derecognitions and maturities (2 ) (4 ) – (6 ) Total provision for credit losses (“PCL”) (3) (5 ) (4 ) 16 7 Write-offs (4) – – (19 ) (19 ) Recoveries of previous write-offs – – 13 13 Foreign exchange and other – (1 ) (16 ) (17 ) Balance as at October 31, 2019 15 33 38 86 Loans: Consumer instalment and other personal Balance as at October 31, 2018 90 326 144 560 Transfer to Stage 1 (1) 174 (161 ) (13 ) – Transfer to Stage 2 (1) (18 ) 85 (67 ) – Transfer to Stage 3 (1) (5 ) (109 ) 114 – Net remeasurement of loss allowance (2) (183 ) 232 167 216 Loan originations 48 – – 48 Derecognitions and maturities (16 ) (40 ) – (56 ) Total PCL (3) – 7 201 208 Write-offs (4) – – (306 ) (306 ) Recoveries of previous write-offs – – 118 118 Foreign exchange and other (1 ) – (21 ) (22 ) Balance as at October 31, 2019 89 333 136 558 Loans: Credit cards Balance as at October 31, 2018 74 219 – 293 Transfer to Stage 1 (1) 107 (107 ) – – Transfer to Stage 2 (1) (21 ) 21 – – Transfer to Stage 3 (1) (1 ) (173 ) 174 – Net remeasurement of loss allowance (2) (96 ) 288 72 264 Loan originations 20 – – 20 Derecognitions and maturities (4 ) (24 ) – (28 ) Total PCL (3) 5 5 246 256 Write-offs (4) – – (339 ) (339 ) Recoveries of previous write-offs – – 93 93 Foreign exchange and other 1 1 – 2 Balance as at October 31, 2019 80 225 – 305 Loans: Business and government Balance as at October 31, 2018 298 408 209 915 Transfer to Stage 1 (1) 201 (187 ) (14 ) – Transfer to Stage 2 (1) (50 ) 65 (15 ) – Transfer to Stage 3 (1) (1 ) (66 ) 67 – Net remeasurement of loss allowance (2) (214 ) 353 250 389 Loan originations 199 – – 199 Derecognitions and maturities (102 ) (82 ) – (184 ) Total PCL (3) 33 83 288 404 Write-offs (4) – – (203 ) (203 ) Recoveries of previous write-offs – – 66 66 Foreign exchange and other 7 5 (49 ) (37 ) Balance as at October 31, 2019 338 496 311 1,145 Total as at October 31, 2019 522 1,087 485 2,094 Comprised of: Loans 403 984 463 1,850 Other credit instruments (5) 119 103 22 244 (1) Transfers represent the amount of ECL that moved between stages during the period, for example, moving from a 12-month (Stage 1) to lifetime (Stage 2) ECL measurement basis. (2) Net remeasurements represent the ECL impact due to stage transfers, changes in economic forecasts and credit quality. (3) Excludes PCL on other assets of $(3) million. (4) Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. (5) Recorded in other liabilities on the Consolidated Balance Sheet. The following table shows the continuity in the loss allowance, by product type, for the year ended October 31, 2018: (Canadian $ in millions) For the year ended Stage 1 Stage 2 Stage 3 Total Loans: Residential mortgages Balance as at November 1, 2017 16 34 49 99 Transfer to Stage 1 (1) 34 (31 ) (3 ) – Transfer to Stage 2 (1) (1 ) 7 (6 ) – Transfer to Stage 3 (1) – (9 ) 9 – Net remeasurement of loss allowance (2) (37 ) 42 19 24 Loan originations 10 – – 10 Derecognitions and maturities (2 ) (6 ) – (8 ) Total PCL (3) 4 3 19 26 Write-offs (4) – – (20 ) (20 ) Recoveries of previous write-offs – – 7 7 Foreign exchange and other – 1 (11 ) (10 ) Balance as at October 31, 2018 20 38 44 102 Loans: Consumer instalment and other personal Balance as at November 1, 2017 76 357 137 570 Transfer to Stage 1 (1) 214 (200 ) (14 ) – Transfer to Stage 2 (1) (22 ) 105 (83 ) – Transfer to Stage 3 (1) (4 ) (162 ) 166 – Net remeasurement of loss allowance (2) (196 ) 272 162 238 Loan originations 39 – – 39 Derecognitions and maturities (18 ) (50 ) – (68 ) Total PCL (3) 13 (35 ) 231 209 Write-offs (4) – – (301 ) (301 ) Recoveries of previous write-offs – – 92 92 Foreign exchange and other 1 4 (15 ) (10 ) Balance as at October 31, 2018 90 326 144 560 Loans: Credit cards Balance as at November 1, 2017 83 254 – 337 Transfer to Stage 1 (1) 177 (177 ) – – Transfer to Stage 2 (1) (37 ) 37 – – Transfer to Stage 3 (1) (1 ) (195 ) 196 – Net remeasurement of loss allowance (2) (164 ) 342 20 198 Loan originations 19 – – 19 Derecognitions and maturities (3 ) (42 ) – (45 ) Total PCL (3) (9 ) (35 ) 216 172 Write-offs (4) – – (319 ) (319 ) Recoveries of previous write-offs – – 103 103 Balance as at October 31, 2018 74 219 – 293 Loans: Business and government Balance as at November 1, 2017 268 410 234 912 Transfer to Stage 1 (1) 136 (128 ) (8 ) – Transfer to Stage 2 (1) (31 ) 66 (35 ) – Transfer to Stage 3 (1) (1 ) (61 ) 62 – Net remeasurement of loss allowance (2) (155 ) 203 215 263 Loan originations 163 – – 163 Derecognitions and maturities (80 ) (86 ) – (166 ) Model changes (5) (7 ) (3 ) – (10 ) Total PCL (3) 25 (9 ) 234 250 Write-offs (4) – – (297 ) (297 ) Recoveries of previous write-offs – – 59 59 Foreign exchange and other 5 7 (21 ) (9 ) Balance as at October 31, 2018 298 408 209 915 Total as at October 31, 2018 482 991 397 1,870 Comprised of: Loans 374 895 370 1,639 Other credit instruments (6) 108 96 27 231 (1) Transfers represent the amount of ECL that moved between stages during the period, for example, moving from a 12-month (Stage 1) to lifetime (Stage 2) ECL measurement basis. (2) Net remeasurements represent the ECL impact due to stage transfers, changes in economic forecasts and credit quality. (3) Excludes PCL on other assets of $5 million. (4) Generally, we continue to seek recovery on amounts that were written off during the year, unless the loan is sold, we no longer have the right to collect or we have exhausted all reasonable efforts to collect. (5) Model changes represent calibration of models to forward-looking information and changes due to regulatory reform. (6) Recorded in other liabilities on the Consolidated Balance Sheet. |
Schedule of Loans and Allowance for Credit Losses by Geographic Region | Loans and allowance for credit losses by geographic region as at October 31, 2019 and 2018 are as follows: (Canadian $ in millions) 2019 2018 Gross Allowance on Allowance on Net Gross Allowance on Allowance on Net By geographic region: (1) Canada 258,842 207 740 257,895 243,261 189 689 242,383 United States 158,454 256 630 157,568 132,789 181 574 132,034 Other countries 10,648 – 17 10,631 9,580 – 6 9,574 Total 427,944 463 1,387 426,094 385,630 370 1,269 383,991 (1) Geographic region is based upon the country of ultimate risk. (2) Excludes allowance for credit losses on impaired loans of $22 million for other credit instruments, which is included in other liabilities ($27 million in 2018). (3) Excludes allowance for credit losses on performing loans of $222 million for other credit instruments, which is included in other liabilities ($204 million in 2018). Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Schedule of Impaired Loans, Including the Related Allowances | Impaired (Stage 3) loans, including the related allowances, as at October 31, 2019 and 2018 are as follows: (Canadian $ in millions) Gross impaired amount Allowance on impaired loans (2) Net impaired amount 2019 2018 2019 2018 2019 2018 Residential mortgages 414 375 17 19 397 356 Consumer instalment and other personal loans 468 521 136 143 332 378 Business and government loans 1,747 1,040 310 208 1,437 832 Total 2,629 1,936 463 370 2,166 1,566 By geographic region: (1) Canada 914 735 207 189 707 546 United States 1,715 1,201 256 181 1,459 1,020 Other countries – – – – – – Total 2,629 1,936 463 370 2,166 1,566 (1) Geographic region is based upon the country of ultimate risk. (2) Excludes allowance for credit losses on impaired loans of $22 million for other credit instruments, which is included in other liabilities ($27 million in 2018). Fully secured loans with amounts past due between 90 and 180 days that we have not classified as impaired totalled $54 million and $49 million as at October 31, 2019 and 2018, respectively. |
Summary of Loans that are Past Due but not Classified as Impaired | The following table presents loans that are past due but not classified as impaired as at October 31, 2019 and 2018. (Canadian $ in millions) 1 to 29 days 30 to 89 days 90 days or more Total 2019 2018 2019 2018 2019 2018 2019 2018 Residential mortgages 806 660 465 513 16 21 1,287 1,194 Credit card, consumer instalment and other personal loans 1,590 1,431 426 415 87 88 2,103 1,934 Business and government loans 351 611 207 268 59 55 617 934 Total 2,747 2,702 1,098 1,196 162 164 4,007 4,062 |
Summary of Key Economic Variables Used in Base Case | The following table shows the key economic variables we use to estimate our allowance on performing loans during the forecast period. The values shown represent the end of period national average values for the first 12 months and then the national average for the remaining horizon. While the values disclosed below are national variables, in our underlying models we use regional variables where considered appropriate. Benign scenario Base scenario Adverse scenario As at October 31 First 12 months Remaining horizon First 12 months Remaining horizon First 12 months Remaining horizon 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Real gross domestic product (2) Canada 2.9% 3.1% 2.3% 2.4% 1.6% 1.8% 1.6% 1.6% (3.2)% (3.2)% 0.8% 0.8% U.S. 2.4% 2.9% 2.3% 1.9% 1.8% 2.4% 1.9% 1.6% (2.9)% (2.9)% 0.9% 0.9% Corporate BBB 10-year Canada 2.0% 2.0% 2.1% 2.1% 2.3% 2.3% 2.3% 2.3% 4.7% 4.7% 3.9% 3.9% U.S. 1.8% 1.8% 2.0% 2.0% 2.4% 2.2% 2.4% 2.3% 4.3% 4.3% 3.4% 3.5% Unemployment rates Canada 5.1% 5.4% 4.9% 5.2% 5.7% 5.6% 5.9% 5.6% 8.9% 9.3% 8.9% 9.3% U.S. 3.3% 3.2% 3.2% 3.1% 3.7% 3.6% 3.8% 3.7% 6.5% 6.7% 6.6% 6.8% Housing Price Index Canada (3) 3.7% 2.4% 3.6% 2.6% 1.8% 1.4% 2.5% 1.8% (12.8)% (12.8)% (3.2)% (3.2)% U.S. (4) 4.5% 5.1% 4.1% 4.3% 3.0% 3.6% 2.7% 3.0% (7.3)% (7.3)% (1.2)% (1.2)% (1) The remaining forecast period is two years. (2) Real gross domestic product is based on year over year growth. (3) In Canada, we use the HPI Benchmark Composite. (4) In the U.S., we use the National Case-Shiller House Price Index. |
Transfer of Assets (Tables)
Transfer of Assets (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Summary of Carrying Amount and Fair Value of Transferred Assets That Did Not Qualify for Derecognition and Associated Liabilities | The following table presents the carrying amounts and fair values of transferred assets that did not qualify for derecognition and the associated liabilities: (Canadian $ in millions) 2019 2018 Carrying amount Fair value Carrying amount (1) Fair value Assets Residential mortgages 6,357 5,569 Other related assets (2) 10,872 11,640 Total 17,229 17,253 17,209 17,105 Associated liabilities (3) 16,993 17,202 16,925 16,763 (1) Carrying amount of loans is net of allowance. (2) Other related assets represent payments received on account of mortgages pledged under securitization programs that have not yet been applied against the associated liabilities. The payments received are held in permitted instruments on behalf of the investors in the securitization vehicles until principal payments are required to be made on the associated liabilities. In order to compare all assets supporting the associated liabilities, this amount is added to the carrying amount of the securitized assets in the table above. (3) Associated liabilities are recognized in Securitization and structured entities’ liabilities in our Consolidated Balance Sheet. |
Structured Entities (Tables)
Structured Entities (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Statement [Line Items] | |
Summary of Carrying Amount and Fair Value of Transferred Assets That Did Not Qualify for Derecognition and Associated Liabilities | The following table presents the carrying amounts and fair values of transferred assets that did not qualify for derecognition and the associated liabilities: (Canadian $ in millions) 2019 2018 Carrying amount Fair value Carrying amount (1) Fair value Assets Residential mortgages 6,357 5,569 Other related assets (2) 10,872 11,640 Total 17,229 17,253 17,209 17,105 Associated liabilities (3) 16,993 17,202 16,925 16,763 (1) Carrying amount of loans is net of allowance. (2) Other related assets represent payments received on account of mortgages pledged under securitization programs that have not yet been applied against the associated liabilities. The payments received are held in permitted instruments on behalf of the investors in the securitization vehicles until principal payments are required to be made on the associated liabilities. In order to compare all assets supporting the associated liabilities, this amount is added to the carrying amount of the securitized assets in the table above. (3) Associated liabilities are recognized in Securitization and structured entities’ liabilities in our Consolidated Balance Sheet. |
Summary of Unconsolidated Structured Entities | The table below presents amounts related to our interests in unconsolidated SEs: (Canadian $ in millions) 2019 2018 Capital vehicles Canadian customer Capital vehicles Canadian customer Interests recorded on the balance sheet Cash and cash equivalents 547 66 118 53 Trading securities – 8 – 12 FVTPL securities – 567 – 582 FVOCI securities – 616 2 242 Trading loans – – 7 – Other 15 – 3 13 562 1,257 130 902 Deposits 547 66 570 53 Other 9 – 17 – 556 66 587 53 Exposure to loss (2) – 7,453 28 7,135 Total assets of the entities 556 4,854 587 5,033 (1) Securities held that are issued by our Canadian customer securitization vehicles are comprised of asset-backed commercial paper and are classified as trading securities, FVTPL securities and FVOCI securities. All assets held by these vehicles relate to assets in Canada. (2) Exposure to loss represents securities held, undrawn liquidity facilities, total committed amounts of the BMO funded vehicle, derivative assets and loans. |
Consolidated structured entities [member] | |
Statement [Line Items] | |
Summary of Carrying Amount and Fair Value of Transferred Assets That Did Not Qualify for Derecognition and Associated Liabilities | The following table presents the carrying amounts and fair values of transferred assets that did not qualify for derecognition and the associated liabilities issued by our bank securitization vehicles: (Canadian $ in millions) 2019 2018 Carrying amount Fair value Carrying amount (1) Fair value Assets Credit cards 7,747 7,747 7,246 7,246 Consumer instalment and other personal (2) 5,872 5,876 6,827 6,799 Business and government 716 721 – – Total 14,335 14,344 14,073 14,045 Associated liabilities (3) 10,166 10,209 8,179 8,134 (1) Carrying amount of loans is net of allowance. (2) Includes Canadian real estate lines of credit and Canadian auto loans. (3) Associated liabilities are recognized in Securitization and structured entities’ liabilities in our Consolidated Balance Sheet. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Schedule of Fair Value of Derivative Instruments | Fair values of our derivative instruments are as follows: (Canadian $ in millions) 2019 2018 Gross assets Gross Net Gross assets Gross Net Trading Interest Rate Contracts Swaps 7,588 (5,834 ) 1,754 7,013 (5,637 ) 1,376 Forward rate agreements 44 (157 ) (113 ) 36 (10 ) 26 Futures 1 (4 ) (3 ) 2 (3 ) (1 ) Purchased options 632 – 632 425 – 425 Written options – (403 ) (403 ) – (273 ) (273 ) Foreign Exchange Contracts Cross-currency swaps 2,394 (1,383 ) 1,011 2,362 (1,678 ) 684 Cross-currency interest rate swaps 3,471 (4,950 ) (1,479 ) 4,977 (6,057 ) (1,080 ) Forward foreign exchange contracts 2,796 (2,379 ) 417 4,335 (2,817 ) 1,518 Purchased options 188 – 188 241 – 241 Written options – (203 ) (203 ) – (228 ) (228 ) Commodity Contracts Swaps 754 (1,273 ) (519 ) 1,559 (1,084 ) 475 Futures 122 (40 ) 82 17 – 17 Purchased options 270 – 270 484 – 484 Written options – (367 ) (367 ) – (372 ) (372 ) Equity Contracts 1,199 (2,999 ) (1,800 ) 2,158 (2,402 ) (244 ) Credit Contracts Purchased 2 (98 ) (96 ) 1 (36 ) (35 ) Written 47 (4 ) 43 9 (1 ) 8 Total fair value – trading derivatives 19,508 (20,094 ) (586 ) 23,619 (20,598 ) 3,021 Hedging Interest Rate Contracts Cash flow hedges – swaps 1,393 (121 ) 1,272 18 (1,261 ) (1,243 ) Fair value hedges – swaps 799 (1,435 ) (636 ) 701 (668 ) 33 Total swaps 2,192 (1,556 ) 636 719 (1,929 ) (1,210 ) Foreign Exchange Contracts Cash flow hedges 420 (1,948 ) (1,528 ) 1,084 (1,074 ) 10 Total foreign exchange contracts 420 (1,948 ) (1,528 ) 1,084 (1,074 ) 10 Equity Contracts Cash flow hedges 24 – 24 – (28 ) (28 ) Total equity contracts 24 – 24 – (28 ) (28 ) Total fair value – hedging derivatives (1) 2,636 (3,504 ) (868 ) 1,803 (3,031 ) (1,228 ) Total fair value – trading and hedging derivatives 22,144 (23,598 ) (1,454 ) 25,422 (23,629 ) 1,793 Less: impact of master netting agreements (13,538 ) 13,538 – (15,575 ) 15,575 – Total 8,606 (10,060 ) (1,454 ) 9,847 (8,054 ) 1,793 (1) The fair values of hedging derivatives wholly or partially offset the changes in fair values of the related on-balance Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Schedule of Notional Amounts of Trading Derivatives | (Canadian $ in millions) 2019 2018 Exchange traded Over-the-counter Total Exchange traded Over-the-counter Total Interest Rate Contracts Swaps – 4,209,193 4,209,193 – 3,684,763 3,684,763 Forward rate agreements – 491,437 491,437 – 411,573 411,573 Purchased options 13,737 42,084 55,821 26,629 35,023 61,652 Written options 16,446 49,487 65,933 16,511 48,721 65,232 Futures 225,747 – 225,747 192,482 – 192,482 Total interest rate contracts 255,930 4,792,201 5,048,131 235,622 4,180,080 4,415,702 Foreign Exchange Contracts Cross-currency swaps – 47,977 47,977 – 57,226 57,226 Cross-currency interest rate swaps – 499,571 499,571 – 449,187 449,187 Forward foreign exchange contracts – 453,711 453,711 – 463,743 463,743 Purchased options 3,295 37,397 40,692 2,625 21,468 24,093 Written options 2,502 42,075 44,577 1,420 24,018 25,438 Futures 882 – 882 739 – 739 Total foreign exchange contracts 6,679 1,080,731 1,087,410 4,784 1,015,642 1,020,426 Commodity Contracts Swaps – 24,722 24,722 – 24,366 24,366 Purchased options 3,615 6,608 10,223 3,303 6,182 9,485 Written options 5,230 4,371 9,601 4,909 4,233 9,142 Futures 32,422 – 32,422 33,104 – 33,104 Total commodity contracts 41,267 35,701 76,968 41,316 34,781 76,097 Equity Contracts 39,952 50,910 90,862 33,687 52,725 86,412 Credit Contracts Purchased – 5,361 5,361 – 3,047 3,047 Written – 2,068 2,068 – 443 443 Total 343,828 5,966,972 6,310,800 315,409 5,286,718 5,602,127 |
Schedule of Notional Amount and Average Rates of Derivatives and the Carrying Amount of Deposits Designated as Hedging Instruments, by Term to Maturity | The following table outlines the notional amounts and average rates of derivatives and the carrying amounts of deposits designated as hedging instruments, by term to maturity, hedge type, and risk type, where applicable. Remaining term to maturity 2019 2018 (Canadian $ in millions, except as noted) Within 1 year 1 to 3 years 3 to 5 years 5 to 10 years Over 10 years Total Total Cash Flow Hedges Interest rate risk – Interest rate swaps Notional amount 18,151 27,369 32,852 15,239 – 93,611 73,769 Average fixed interest rate 1.78 % 2.06 % 2.19 % 1.83 % – 2.01 % 2.21 % Foreign exchange risk – Cross-currency swaps and foreign exchange forwards (1) CAD-USD Notional amount 5,666 13,671 15,039 5,527 251 40,154 29,119 Average fixed interest rate 1.01 % 1.86 % 2.48 % 1.59 % 3.02 % 1.95 % 1.57 % Average exchange rate: CAD-USD 1.2938 1.3127 1.3121 1.2659 1.3122 1.3034 1.2930 CAD-EUR Notional amount 4,993 8,464 6,699 – 201 20,357 21,349 Average fixed interest rate 1.98 % 2.42 % 2.11 % – 2.97 % 2.21 % 2.11 % Average exchange rate: CAD-EUR 1.4719 1.4994 1.4894 – 1.4870 1.4892 1.4908 Other currency pairs (2) Notional amount 1,453 2,272 3,202 922 – 7,849 6,353 Average fixed interest rate 1.86 % 2.56 % 2.92 % 2.54 % – 2.57 % 2.59 % Average exchange rate: CAD-Non 1.6026 1.3199 1.1895 1.4539 – 1.3348 1.3430 Equity price risk – Total return swap Notional amount 316 – – – – 316 381 Fair Value Hedges Interest rate risk – Interest rate swaps Notional amount 13,300 32,633 30,708 16,809 17 93,467 73,464 Average fixed interest rate 2.26 % 2.18 % 2.22 % 2.30 % 2.36 % 2.23 % 2.17 % Net Investment Hedges Foreign exchange risk USD denominated deposit – carrying amount 6,495 – – – – 6,495 6,596 GBP denominated deposit – carrying amount 685 – – – – 685 473 (1) Under certain hedge strategies using cross-currency swaps, a CAD leg is inserted to create two swaps designated as separate hedges (for example, a EURO-USD EURO-CAD CAD-USD CAD-foreign (2) Includes CAD-AUD, CAD-CHF, CAD-CNH, CAD-GBP CAD-HKD |
Schedule of Hedging Instrument Impacts on Cash Flow Hedge Ineffectiveness | For cash flow hedges and net investment hedges, the following tables contain information related to items designated as hedging instruments, hedged items and hedge ineffectiveness for the years ended October 31, 2019 and October 31, 2018. 2019 Carrying amount of Hedge ineffectiveness (Canadian $ in millions) Asset Liability Gains ( l Gains ( l Ineffectiveness non-interest Cash flow hedges Interest rate risk – Interest rate swaps 1,393 (121 ) 3,142 (3,118 ) 15 Foreign exchange risk – Cross-currency swaps and foreign exchange forwards 420 (1,948 ) (1,195 ) 1,195 – Equity price risk – Total return swaps 24 – 15 (15 ) – 1,837 (2,069 ) 1,962 (1,938 ) 15 Net investment hedges Foreign exchange risk – Deposit liabilities – (7,180 ) (17 ) 17 – Total 1,837 (9,249 ) 1,945 (1,921 ) 15 (1) Represents the unrealized gains (losses) within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Balance Sheet. 2018 Carrying amount of Hedge ineffectiveness (Canadian $ in millions) Asset Liability Gains ( l Gains ( l Ineffectiveness non-interest Cash flow hedges Interest rate risk – Interest rate swaps 18 (1,261 ) (1,685 ) 1,687 (4 ) Foreign exchange risk – Cross-currency swaps and foreign exchange forwards 1,084 (1,074 ) (459 ) 459 – Equity price risk – Total return swaps – (28 ) 24 (24 ) – 1,102 (2,363 ) (2,120 ) 2,122 (4 ) Net investment hedges Foreign exchange risk – Deposit liabilities – (7,069 ) (211 ) 211 – Total 1,102 (9,432 ) (2,331 ) 2,333 (4 ) (1) Represents the unrealized gains (losses) within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Balance Sheet. |
Schedule of Hedging Instrument Impacts on Consolidated Statement of Other Comprehensive Income on Pre-Tax Basis | For cash flow hedges and net investment hedges, the following tables contain information related to impacts on the Consolidated Statement of Other Comprehensive Income, on a pre-tax 2019 Balance in cash flow hedge AOCI / (Canadian $ in millions) Balance October 31, 2018 Gains / Amount reclassified to Balance Active hedges Discontinued hedges Cash flow hedges Interest rate risk (2,211 ) 3,127 240 1,156 1,150 6 Foreign exchange risk 751 (1,177 ) (18 ) (444 ) (444 ) – Equity price risk 30 15 (28 ) 17 17 – (1,430 ) 1,965 194 729 723 6 Net investment hedges Foreign exchange risk (1,791 ) (17 ) – (1,808 ) (1,808 ) – Total (3,221 ) 1,948 194 (1,079 ) (1,085 ) 6 (1) Tax balance related to cash flow hedge AOCI is $(216) million. 2018 Balance in cash flow hedge AOCI / net foreign operations AOCI (Canadian $ in millions) Balance Gains / Amount reclassified to Balance Active hedges Discontinued hedges Cash flow hedges Interest rate risk (597 ) (1,681 ) 67 (2,211 ) (1,348 ) (863 ) Foreign exchange risk 298 (3 ) 456 751 751 – Equity price risk 72 24 (66 ) 30 30 – (227 ) (1,660 ) 457 (1,430 ) (567 ) (863 ) Net investment hedges Foreign exchange risk (1,580 ) (211 ) – (1,791 ) (1,791 ) – Total (1,807 ) (1,871 ) 457 (3,221 ) (2,358 ) (863 ) (1) Tax balance related to cash flow hedge AOCI is $356 million. |
Schedule of Hedging Instrument Impacts on Fair Value Hedge Ineffectiveness | The amounts relating to derivatives designated as fair value hedging instruments, hedged items and hedge ineffectiveness for the years ended October 31, 2019 and October 31, 2018 are as follows: (Canadian $ in millions) 2019 Carrying amount of Hedge ineffectiveness Accumulated amount of fair value Asset Liability Gains ( l Gains ( l Ineffectiveness non-interest Carrying amount Active hedges Discontinued hedges Fair value hedge Interest rate swaps 799 (1,435 ) Securities and loans – – (2,072 ) 2,058 (14 ) 53,672 1,249 8 Deposits and subordinated debt – – 1,269 (1,255 ) 14 (41,277 ) (609 ) 308 Total 799 (1,435 ) (803 ) 803 – 12,395 640 316 (1) Represents the unrealized gains (losses) within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Balance Sheet. (2) Represents the carrying value on the Consolidated Balance Sheet and includes amortized cost, before allowance for credit losses, plus fair value hedge adjustments, except for FVOCI securities that are carried at fair value. (Canadian $ in millions) 2018 Carrying amount of Hedge ineffectiveness Accumulated amount of fair value Asset Liability Gains ( l Gains ( l Ineffectiveness non-interest Carrying amount Active hedges Discontinued hedges Fair value hedge Interest rate swaps 701 (668 ) Securities and loans – – 850 (843 ) 7 36,722 (1,160 ) – Deposits and subordinated debt – – (764 ) 761 (3 ) (34,375 ) 719 436 Total 701 (668 ) 86 (82 ) 4 2,347 (441 ) 436 (1) Represents the unrealized gains (losses) within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Balance Sheet. (2) Represents the carrying value on the Consolidated Balance Sheet and includes amortized cost, before allowance for credit losses, plus fair value hedge adjustments, except for FVOCI securities that are carried at fair value. |
Schedule of Derivative-Related Credit Risk | (Canadian $ in millions) 2019 Replacement Credit risk Risk-weighted Interest Rate Contracts Over-the-counter Swaps 3,233 8,114 2,300 Forward rate agreements 102 1,162 236 Purchased options 11 62 39 Written options 38 154 98 3,384 9,492 2,673 Exchange traded Futures 90 161 3 Purchased options 28 40 1 Written options 3 6 – 121 207 4 Total interest rate contracts 3,505 9,699 2,677 Foreign Exchange Contracts Over-the-counter Swaps 1,184 6,248 989 Forward foreign exchange contracts 1,753 7,225 1,260 Purchased options 40 167 46 Written options 10 119 29 2,987 13,759 2,324 Exchange traded Futures 13 20 – Purchased options 13 24 – Written options – 2 – 26 46 – Total foreign exchange contracts 3,013 13,805 2,324 Commodity Contracts Over-the-counter Swaps 213 2,154 629 Purchased options 98 472 125 Written options 116 370 204 427 2,996 958 Exchange traded Futures 393 1,079 22 Purchased options 378 567 11 Written options 1 52 1 772 1,698 34 Total commodity contracts 1,199 4,694 992 Equity Contracts Over-the-counter 197 4,572 1,246 Exchange traded 1,083 2,580 52 Total equity contracts 1,280 7,152 1,298 Credit Contracts 277 496 34 Total 9,274 35,846 7,325 (1) In 2019, Replacement Cost and Credit Risk Equivalent are presented after the impact of master netting agreements and calculated using the Standardized Approach Counterparty Risk (“SA-CCR“) (Canadian $ in millions) 2018 Replacement Credit risk Risk-weighted Interest Rate Contracts Over-the-counter Swaps 7,732 9,917 – Forward rate agreements 36 34 – Purchased options 409 393 – 8,177 10,344 704 Exchange traded Futures 2 29 – Purchased options 16 250 – Written options – – – 18 279 Total interest rate contracts 8,195 10,623 704 Foreign Exchange Contracts Over-the-counter Swaps 8,305 22,741 – Forward foreign exchange contracts 4,453 8,373 – Purchased options 225 424 – 12,983 31,538 2,544 Exchange traded Futures – 8 – Purchased options 16 36 – Written options – – – 16 44 Total foreign exchange contracts 12,999 31,582 2,544 Commodity Contracts Over-the-counter Swaps 1,559 4,450 – Purchased options 335 1,108 – 1,894 5,558 1,188 Exchange traded Futures 17 770 – Purchased options 149 305 – Written options – – – 166 1,075 Total commodity contracts 2,060 6,633 1,188 Equity Contracts Over-the-counter 1,585 4,332 Exchange traded 573 1,646 Total equity contracts 2,158 5,978 431 Credit Contracts 10 55 83 Total derivatives 25,422 54,871 4,950 Less: impact of master netting agreements (15,575 ) (29,589 ) – Total (2) 9,847 25,282 4,950 (1) In 2019, Replacement Cost and Credit Risk Equivalent are presented after the impact of master netting agreements and calculated using the SA-CCR (2) The total derivatives and the impact of master netting agreements for replacement cost and credit risk equivalent do not include over-the-counter cleared derivatives with a fair value of $846 million as at October 31, 2018. Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Schedule of Remaining Contractual Terms to Maturity for Notional Amounts of Derivative Contracts | Our derivative contracts have varying maturity dates. The remaining contractual terms to maturity for the notional amounts of our derivative contracts are set out below: (Canadian $ in millions) Term to maturity 2019 2018 Within 1 1 to 3 years 3 to 5 5 to 10 Over 10 Total notional Total notional Interest Rate Contracts Swaps 1,652,793 1,321,286 771,362 510,596 140,235 4,396,272 3,831,997 Forward rate agreements, futures and options 723,117 89,440 15,942 9,446 993 838,938 730,939 Total interest rate contracts 2,375,910 1,410,726 787,304 520,042 141,228 5,235,210 4,562,936 Foreign Exchange Contracts Swaps 169,935 187,893 126,074 97,154 23,672 604,728 548,148 Forward foreign exchange contracts 442,750 9,590 1,226 119 26 453,711 472,323 Futures 862 18 2 – – 882 739 Options 79,719 4,445 636 469 – 85,269 49,531 Total foreign exchange contracts 693,266 201,946 127,938 97,742 23,698 1,144,590 1,070,741 Commodity Contracts Swaps 6,374 15,899 2,132 317 – 24,722 24,366 Futures 12,120 16,782 3,096 424 – 32,422 33,104 Options 8,646 10,497 613 68 – 19,824 18,627 Total commodity contracts 27,140 43,178 5,841 809 – 76,968 76,097 Equity Contracts 69,854 13,875 5,494 1,636 319 91,178 86,794 Credit Contracts 204 444 4,152 2,451 178 7,429 3,490 Total notional amount 3,166,374 1,670,169 930,729 622,680 165,423 6,555,375 5,800,058 Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Summary of Maximum Estimated Useful Lives to Amortize Assets | The maximum estimated useful lives we use to depreciate our assets are as follows: Buildings 10 to 40 years Computer equipment and operating system software 5 to 7 years Other equipment 10 years Leasehold improvements Lease term to a maximum of 10 years |
Summary of Net Rent Expense for Premises and Equipment | (Canadian $ in millions) 2019 2018 Land Buildings Computer Other Leasehold Total Land Buildings Computer Other Leasehold Total Cost Balance at beginning of year 145 1,627 2,229 933 1,514 6,448 174 1,726 1,994 913 1,429 6,236 Additions 10 86 343 57 124 620 4 66 236 40 87 433 Disposals (1) (45 ) (179 ) (102 ) (15 ) (24 ) (365 ) (32 ) (163 ) (11 ) (27 ) (20 ) (253 ) Foreign exchange and other (1 ) – – (2 ) 1 (2 ) (1 ) (2 ) 10 7 18 32 Balance at end of year 109 1,534 2,470 973 1,615 6,701 145 1,627 2,229 933 1,514 6,448 Accumulated Depreciation and Impairment Balance at beginning of year – 1,016 1,662 704 1,080 4,462 – 1,063 1,465 674 1,001 4,203 Disposals (1) – (114 ) (101 ) (12 ) (20 ) (247 ) – (116 ) (9 ) (24 ) (15 ) (164 ) Depreciation – 59 227 51 98 435 – 60 201 48 91 400 Foreign exchange and other – – (2 ) (1 ) (1 ) (4 ) – 9 5 6 3 23 Balance at end of year – 961 1,786 742 1,157 4,646 – 1,016 1,662 704 1,080 4,462 Net carrying value 109 573 684 231 458 2,055 145 611 567 229 434 1,986 (1) Includes fully depreciated assets written off. |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Summary of Fair Value of Assets Acquired and Liabilities Assumed at The Date of Acquisition | The fair values of the assets acquired and liabilities assumed at the date of acquisition are as follows: (Canadian $ in millions) KGS Securities – trading 5,193 Securities borrowed or purchased under resale agreements 5,669 Goodwill and intangible assets 108 Other assets 583 Total assets 11,553 Securities lent or sold under repurchase agreements 9,563 Securities sold but not yet purchased 1,431 Other liabilities 163 Purchase price 396 The purchase price allocation for KGS has been completed. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Continuity of Goodwill By Group of CGUs | A continuity of our goodwill by group of CGUs for the years ended October 31, 2019 and 2018 is as follows: (Canadian $ in millions) Personal and Commercial Banking Wealth Management BMO Total Canadian U.S. Total Traditional Insurance Total Balance – October 31, 2017 97 3,719 3,816 2,137 2 2,139 289 6,244 Acquisitions (disposals) during the year – – – – – – 54 54 Foreign exchange and other (1) – 78 78 (8 ) – (8 ) 5 75 Balance – October 31, 2018 97 3,797 3,894 2,129 2 2,131 348 6,373 Acquisitions (disposals) during the year – – – – – – – – Foreign exchange and other (1) – (1 ) (1 ) 16 – 16 (48 ) (33 ) Balance – October 31, 2019 97 (2) 3,796 (3) 3,893 2,145 (4) 2 (5) 2,147 300 (6) 6,340 (1) Other changes in goodwill included the effects of translating goodwill denominated in foreign currencies into Canadian dollars and purchase accounting adjustments related to prior-year purchases. (2) Relates primarily to bcpbank Canada, Diners Club, Aver Media LP and GE Transportation Finance. (3) Relates primarily to First National Bank & Trust, Ozaukee Bank, Merchants and Manufacturers Bancorporation, Inc., Diners Club, AMCORE, M&I and GE Transportation Finance. (4) Relates to BMO Nesbitt Burns Inc., Guardian Group of Funds Ltd., Pyrford International Limited, LGM Investments Limited, M&I, myCFO, Inc., Stoker Ostler Wealth Advisors, Inc., CTC Consulting LLC, AWMB and F&C Asset Management plc. (5) Relates to AIG. (6) Relates to Gerard Klauer Mattison, BMO Nesbitt Burns Inc., Paloma Securities L.L.C., M&I, Greene Holcomb Fisher and KGS. |
Summary of Intangible Assets | The following table presents the changes in the balance of these intangible assets: (Canadian $ in millions) Customer Core Branch distribution Software – Software under Other Total Cost as at October 31, 2017 654 931 187 3,696 398 376 6,242 Additions (disposals) 35 – – 422 94 12 563 Foreign exchange and other (1 ) 20 4 9 4 (4 ) 32 Cost as at October 31, 2018 688 951 191 4,127 496 384 6,837 Additions (disposals) – – – 718 (91 ) 30 657 Foreign exchange and other 72 – – (9 ) (3 ) 33 93 Cost as at October 31, 2019 760 951 191 4,836 402 447 7,587 (1) Includes $679 million of internally generated software ($416 as at October 31, 2018). The following table presents the accumulated amortization of our intangible assets: (Canadian $ in millions) Customer Core Branch distribution Software – amortizing Software under Other Total Accumulated amortization at October 31, 2017 431 762 187 2,618 – 85 4,083 Amortization 46 51 – 387 – 19 503 Disposals – – – (20 ) – – (20 ) Foreign exchange and other (2 ) 17 4 (15 ) – (5 ) (1 ) Accumulated amortization at October 31, 2018 475 830 191 2,970 – 99 4,565 Amortization 60 48 – 395 – 51 554 Disposals – – – (11 ) – – (11 ) Foreign exchange and other 16 – – 7 – 32 55 Accumulated amortization at October 31, 2019 551 878 191 3,361 – 182 5,163 Carrying value at October 31, 2019 209 73 – 1,475 402 265 2,424 Carrying value at October 31, 2018 213 121 – 1,157 496 285 2,272 |
Other Assets (Tables)
Other Assets (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Components of Other within Other Assts | The components of other within other assets are as follows: (Canadian $ in millions) 2019 2018 Accounts receivable, prepaid expenses and other items 2,905 2,781 Accrued interest receivable 1,755 1,461 Bank owned life insurance policies 4,242 4,154 Leased vehicles 870 937 Cash collateral 3,517 2,019 Due from clients, dealers and brokers 177 236 Insurance-related assets 1,163 822 Other employee future benefits assets (Note 21) 46 – Pension asset (Note 21) 186 664 Precious metals (1) 1,719 1,603 Total 16,580 14,677 (1) Precious metals are recorded at their fair value based on quoted prices in active markets . Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policies (Note 1). |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Deposits | Payable on demand (Canadian $ in millions) Interest bearing Non-interest bearing Payable after notice Payable on a fixed date (3) Total 2019 2018 2019 2018 2019 2018 2019 2018 2019 2018 Deposits by: Banks (1) 1,996 1,450 1,530 1,400 1,017 526 19,273 24,531 23,816 27,907 Business and government 29,083 25,266 33,853 33,984 85,022 67,026 195,199 185,901 343,157 312,177 Individuals 3,361 3,476 23,084 21,345 94,304 90,233 80,421 65,790 201,170 180,844 Total (2) (4) 34,440 30,192 58,467 56,729 180,343 157,785 294,893 276,222 568,143 520,928 Booked in: Canada 27,338 21,735 49,911 47,231 90,630 82,091 181,835 160,069 349,714 311,126 United States 6,043 7,395 8,531 9,477 88,604 74,476 86,368 86,805 189,546 178,153 Other countries 1,059 1,062 25 21 1,109 1,218 26,690 29,348 28,883 31,649 Total 34,440 30,192 58,467 56,729 180,343 157,785 294,893 276,222 568,143 520,928 (1) Includes regulated and central banks. (2) Includes structured notes designated at fair value through profit or loss. (3) Includes $16,248 million of senior unsecured debt as at October 31, 2019 subject to the Bank Recapitalization (Bail-In) Bail-In non-viable. (4) As at October 31, 2019 and 2018, total deposits payable on a fixed date included $25,438 million and $29,673 million, respectively, of federal funds purchased, commercial paper issued and other deposit liabilities. Included in deposits as at October 31, 2019 and 2018 are $279,860 million and $259,747 million, respectively, of deposits denominated in U.S. dollars, and $36,680 million and $37,427 million, respectively, of deposits denominated in other foreign currencies. Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Schedule for our Deposits Payable on a Fixed Date | The following table presents the maturity schedule for our deposits payable on a fixed date: (Canadian $ in millions) 2019 2018 Within 1 year 183,952 162,666 1 to 2 years 34,401 34,154 2 to 3 years 23,855 26,107 3 to 4 years 21,735 16,708 4 to 5 years 16,959 22,196 Over 5 years 13,991 14,391 Total (1) 294,893 276,222 (1) Includes $273,657 million of deposits, each greater than one hundred thousand dollars, of which $167,294 million were booked in Canada, $79,682 million were booked in the United States and $26,681 million were booked in other countries ($246,685 million, $145,574 million, $71,770 million and $29,341 million, respectively, in 2018). Of the $167,294 million of deposits booked in Canada, $73,027 million mature in less than three months, $4,312 million mature in three to six months, $22,814 million mature in six to twelve months and $67,141 million mature after 12 months ($145,574 million, $55,190 million, $3,836 million, $12,909 million and $73,639 million, respectively, in 2018). We have unencumbered liquid assets of $249,650 million to support these and other deposit liabilities ($242,612 million in 2018). Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Other Liabilities (Tables)
Other Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Components of Other within Other Liablities | The components of other within other liabilities are as follows: (Canadian $ in millions) 2019 2018 Accounts payable, accrued expenses and other items 8,613 8,152 Accrued interest payable 1,693 1,385 Cash collateral 5,128 5,466 Insurance-related liabilities 11,581 9,585 Liabilities of subsidiaries, other than deposits 7,934 9,283 Other employee future benefits liability (Note 21) 1,125 960 Payable to brokers, dealers and clients 2,204 1,898 Pension liability (Note 21) 329 256 Total 38,607 36,985 Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Summary of Reconciliation of the Change in Insurance Related Liabilities | A reconciliation of the change in insurance-related liabilities is as follows: (Canadian $ in millions) 2019 2018 Insurance-related liabilities, beginning of year 9,585 8,959 Increase (decrease) in life insurance policy benefit liabilities from: New business 706 742 In-force 906 (400 ) Changes in actuarial assumptions and methodology 23 3 Net increase in life insurance policy benefit liabilities 1,635 345 Change in other insurance-related liabilities 361 281 Insurance-related liabilities, end of year 11,581 9,585 |
Summary of Reinsurance Premiums Ceded | Statement of Income for the years ended October 31, 2019, 2018 and 2017, as shown in the table below: (Canadian $ in millions) 2019 2018 2017 Direct premium income 1,944 1,976 1,750 Ceded premiums (158 ) (148 ) (157 ) 1,786 1,828 1,593 |
Subordinated Debt (Tables)
Subordinated Debt (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Maturities of Subordinated Debt and Repayment | The face values, terms to maturity and carrying values of our subordinated debt are as follows: (Canadian $ in millions, except as noted) Face value Maturity date Interest rate (%) Redeemable at our option 2019 2018 Debentures Series 20 150 December 2025 to 2040 8.25 Not redeemable 145 143 Series H Medium-Term Notes, First Tranche (8) 1,000 September 2024 3.12 September 2019 (1) – 1,003 Series H Medium-Term Notes, Second Tranche (8) 1,000 December 2025 3.34 December 2020 (2) 983 916 Series I Medium-Term Notes, First Tranche (8) 1,250 June 2026 3.32 June 2021 (3) 1,230 1,222 Series I Medium-Term Notes, Second Tranche (8) 850 June 2027 2.57 June 2022 (4) 820 813 3.803% Subordinated Notes due 2032 (8) US 1,250 December 2032 3.80 December 2027 (5) 1,646 1,573 4.338% Subordinated Notes due 2028 (8) US 850 October 2028 4.34 October 2023 (6) 1,180 1,112 Series J Medium-Term Notes, First Tranche (8)(9) 1,000 September 2029 2.88 September 2024 (7) 991 – Total (10) 6,995 6,782 (1) All $1,000 million Series H Medium-Term Notes, First Tranche were redeemed on September 19, 2019 for 100% of the principal amount, plus accrued and unpaid interest to, but excluding, the redemption date. (2) Redeemable at the greater of par and the Canada Yield Price prior to December 8, 2020, and redeemable at par together with accrued and unpaid interest to, but excluding, their redemption date commencing December 8, 2020. (3) Redeemable at the greater of par and the Canada Yield Price prior to June 1, 2021, and redeemable at par together with accrued and unpaid interest to, but excluding, their redemption date commencing June 1, 2021. (4) Redeemable at the greater of par and the Canada Yield Price prior to June 1, 2022, and redeemable at par together with accrued and unpaid interest to, but excluding, their redemption date commencing June 1, 2022. (5) Redeemable at par on December 15, 2027 together with accrued and unpaid interest to, but excluding, the redemption date. (6) Redeemable at par on October 5, 2023 together with accrued and unpaid interest to, but excluding, the redemption date. (7) Redeemable at par on September 17, 2024 together with accrued and unpaid interest to, but excluding, the redemption date. (8) These notes include a non-viability non-viable non-viability. (9) On September 16, 2019, we issued $1,000 million of Series J Medium — Term Notes, First Tranche. (10) Certain amounts of subordinated debt were issued at a premium or discount and include fair value hedge adjustments, which together decreased their carrying value as at October 31, 2019 by $20 million (decreased by $233 million in 2018); see Note 8 for further details for hedge adjustments. The carrying value is also adjusted for our |
Equity (Tables)
Equity (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Statement [Line Items] | |
Summary of Classes of Preferred and Common Shares Outstanding | Preferred and Common Shares Outstanding and Other Equity Instruments (Canadian $ in millions, except as noted) 2019 2018 Number of Amount Dividends declared Number of Amount Dividends declared Preferred Shares – Classified as Equity Class B – Series 16 (1) – – – – – 0.64 Class B – Series 17 (2) – – – – – 0.52 Class B – Series 25 9,425,607 236 0.45 9,425,607 236 0.45 Class B – Series 26 2,174,393 54 0.70 2,174,393 54 0.59 Class B – Series 27 20,000,000 500 0.98 20,000,000 500 1.00 Class B – Series 29 16,000,000 400 0.96 16,000,000 400 0.98 Class B – Series 31 12,000,000 300 0.95 12,000,000 300 0.95 Class B – Series 33 8,000,000 200 0.95 8,000,000 200 0.95 Class B – Series 35 6,000,000 150 1.25 6,000,000 150 1.25 Class B – Series 36 600,000 600 58.50 600,000 600 58.50 Class B – Series 38 24,000,000 600 1.21 24,000,000 600 1.21 Class B – Series 40 20,000,000 500 1.13 20,000,000 500 1.13 Class B – Series 42 16,000,000 400 1.10 16,000,000 400 1.10 Class B – Series 44 (3) 16,000,000 400 1.44 16,000,000 400 – Class B – Series 46 (4) 14,000,000 350 0.77 – – – Preferred Shares – Classified as Equity 4,690 4,340 Other Equity Instruments (5) 658 – Preferred Shares and Other Equity Instruments 5,348 4,340 Common Shares Balance at beginning of year 639,329,625 12,929 647,816,318 13,032 Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan – – – – Issued/cancelled under the Stock Option Plan and other stock-based compensation plans (Note 20) 902,651 62 1,513,307 99 Repurchased for cancellation (1,000,000 ) (20 ) (10,000,000 ) (202 ) Balance at End of Year 639,232,276 12,971 4.06 639,329,625 12,929 3.78 (1) On August 25, 2018, we redeemed all 6,267,391 Non-Cumulative (2) On August 25, 2018, we redeemed all 5,732,609 Non-Cumulative (3) On September 17, 2018, we issued 16 million Non-Cumulative 5-Year (4) On April 17, 2019, we issued 14 million Non-Cumulative (5) On July 30, 2019, we issued US$500 million 4.800% Additional Tier 1 Capital Notes. |
Summary Of Preferred Share Rights And Privileges | Preferred Share Rights and Privileges (Canadian $, except as noted) Redemption amount Quarterly non-cumulative dividend (1) Reset premium Date redeemable / convertible Convertible to Class B – Series 25 25.00 $0.112813 (2) 1.15% August 25, 2021 (3)(4) Class B – Series 26 (8) Class B – Series 26 25.00 Floating (7) 1.15% August 25, 2021 (3)(5) Class B – Series 25 (8) Class B – Series 27 25.00 $ 0.24075 (2) 2.33% May 25, 2024 (3)(4) Class B – Series 28 (8)(9) Class B – Series 29 25.00 $ 0.2265 (2) 2.24% August 25, 2024 (3)(4) Class B – Series 30 (8)(9) Class B – Series 31 25.00 $ 0.2375 (2) 2.22% November 25, 2019 (3)(4) Class B – Series 32 (8)(9) Class B – Series 33 25.00 $ 0.2375 (2) 2.71% August 25, 2020 (3)(4) Class B – Series 34 (8)(9) Class B – Series 35 25.00 $ 0.3125 Does not reset August 25, 2020 (6) Not convertible (9) Class B – Series 36 1,000.00 $ 14.6250 (2) 4.97% November 25, 2020 (3)(4) Class B – Series 37 (8)(9) Class B – Series 38 25.00 $0.303125 (2) 4.06% February 25, 2022 (3)(4) Class B – Series 39 (8)(9) Class B – Series 40 25.00 $ 0.28125 (2) 3.33% May 25, 2022 (3)(4) Class B – Series 41 (8)(9) Class B – Series 42 25.00 $ 0.2750 (2) 3.17% August 25, 2022 (3)(4) Class B – Series 43 (8)(9) Class B – Series 44 25.00 $0.303125 (2) 2.68% November 25, 2023 (3)(4) Class B – Series 45 (8)(9) Class B – Series 46 25.00 $ 0.31875 (2) 3.51% May 25, 2024 (3)(4) Class B – Series 47 (8)(9) (1) Non-cumulative (2) The dividend rate will reset on the date redeemable and every five years thereafter at a rate equal to the 5-year 3-month (3) Redeemable on the date noted and every five years thereafter. (4) Convertible on the date noted and every five years thereafter if not redeemed. If converted, the shares will become floating rate preferred shares. (5) Convertible on the date noted and every five years thereafter if not redeemed. If converted, the shares will become fixed rate preferred shares. (6) Series 35 is subject to a redemption premium if redeemed prior to August 25, 2024. (7) Floating rate will be set as, and when declared, at the 3-month (8) If converted, the holders have the option to convert back to the original preferred shares on subsequent redemption dates. (9) The shares issued include a non-viability contingent capital provision, which is necessary for the shares to qualify as regulatory capital under Basel III. Refer to the Non-Viability Contingent Capital paragraph below for details. |
Additional Tier 1 Capital Notes (NVCC) [member] | |
Statement [Line Items] | |
Summary of Classes of Preferred and Common Shares Outstanding | On July 30, 2019, we issued US$500 million 4.800% Additional Tier 1 Capital Notes (Non-Viability Contingent Capital (“NVCC”)) (“notes”), which are classified as equity and form part of our additional Tier 1 non-viability (Canadian $, in millions, except as noted) 2019 2018 Face value Interest rate (%) Redeemable at our option Convertible to Total Total 4.800% Additional Tier 1 Capital Notes US$ 500 4.800 (1) August 2024 (2) Variable number of common shares (3) 658 – Total 658 – (1) Non-cumulative (2) The notes are redeemable at a redemption price equal to 100% of the principal amount plus any accrued and unpaid interest, in whole or in part, at our option on any interest payment date on or after the first interest reset date in 2024 or following certain regulatory or tax events. The bank may, at any time, purchase the notes at any price in the open market. (3) The notes issued include a non-viability |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments and Trading-Related Revenue (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Fair Value of Financial Instruments Not Carried at Fair Value on the Balance Sheet | Fair Value of Financial Instruments Not Carried at Fair Value on the Balance Sheet Set out in the following tables are the fair values of financial instruments not carried at fair value on our Consolidated Balance Sheet. (Canadian $ in millions) 2019 Carrying Fair value Valued using Valued using Valued using Securities Amortized cost 24,472 24,622 13,612 11,010 – Loans (1) Residential mortgages 123,676 124,093 – 124,093 – Consumer instalment and other personal 67,200 67,516 – 67,516 – Credit cards 8,623 8,623 – 8,623 – Business and government (2) 224,442 225,145 – 225,145 – 423,941 425,377 – 425,377 – Deposits (3) 552,314 553,444 – 553,444 – Securitization and structured entities’ liabilities 27,159 27,342 – 27,342 – Subordinated debt 6,995 7,223 – 7,223 – (1) Carrying value of loans is net of allowance. (2) Excludes $2,156 million of loans classified as FVTPL and $22 million of loans classified as FVOCI. (3) Excludes $15,829 million of structured note liabilities designated at FVTPL and accounted for at fair value. This table excludes certain financial instruments with a carrying value approximating fair value, such as cash and cash equivalents, interest bearing deposits with banks, securities borrowed or purchased under resale agreements, customers’ liability under acceptances, other assets, acceptances, securities lent or sold under repurchase agreements and other liabilities. (Canadian $ in millions) 2018 Carrying Fair value Valued using Valued using Valued using Securities Amortized cost 6,485 6,288 429 5,795 64 Loans (1) Residential mortgages 119,544 118,609 – 118,609 – Consumer instalment and other personal 62,687 62,618 – 62,618 – Credit cards 8,099 8,099 – 8,099 – Business and government (2) 192,225 191,989 – 191,989 – 382,555 381,315 – 381,315 – Deposits (3) 506,742 506,581 – 506,581 – Securitization and structured entities’ liabilities 25,051 24,838 – 24,838 – Subordinated debt 6,782 6,834 – 6,834 – (1) Carrying value of loans is net of allowance. (2) Excludes $1,450 million of loans classified as FVTPL. (3) Excludes $14,186 million of structured note liabilities designated at FVTPL and accounted for at fair value. This table excludes certain financial instruments with a carrying value approximating fair value, such as cash and cash equivalents, interest bearing deposits with banks, securities borrowed or purchased under resale agreements, customers’ liability under acceptances, other assets, acceptances, securities lent or sold under repurchase agreements and other liabilities. |
Summary of Assets and Liabilities categorized by the Fair Value Hierarchy | The extent of our use of actively quoted market prices (Level 1), internal models using observable market information as inputs (Level 2) and models without observable market information as inputs (Level 3) in the valuation of securities, business and government loans classified as FVTPL, fair value liabilities, derivative assets and derivative liabilities is presented in the following table: (Canadian $ in millions) 2019 2018 Valued using Valued using Valued using Total Valued using Valued using Valued using Total Trading Securities Issued or guaranteed by: Canadian federal government 6,959 1,371 – 8,330 9,107 1,213 – 10,320 Canadian provincial and municipal governments 3,871 3,656 – 7,527 4,013 4,689 – 8,702 U.S. federal government 8,001 762 – 8,763 9,465 52 – 9,517 U.S. states, municipalities and agencies 48 626 – 674 78 1,138 – 1,216 Other governments 888 697 – 1,585 1,210 201 – 1,411 NHA MBS and U.S. agency MBS and CMO 14 10,494 538 11,046 60 8,869 255 9,184 Corporate debt 2,620 5,091 7 7,718 2,973 6,218 7 9,198 Trading loans – 103 – 103 – 199 – 199 Corporate equity 40,155 2 – 40,157 49,946 4 – 49,950 62,556 22,802 545 85,903 76,852 22,583 262 99,697 FVTPL Securities Issued or guaranteed by: Canadian federal government 410 107 – 517 328 103 – 431 Canadian provincial and municipal governments 364 915 – 1,279 219 727 – 946 U.S. federal government – 48 – 48 69 – – 69 Other governments – 49 – 49 – – – – NHA MBS and U.S. agency MBS and CMO – 5 – 5 – 7 – 7 Corporate debt 146 8,071 – 8,217 178 6,643 – 6,821 Corporate equity 1,536 69 1,984 3,589 1,378 134 1,825 3,337 2,456 9,264 1,984 13,704 2,172 7,614 1,825 11,611 FVOCI Securities Issued or guaranteed by: Canadian federal government 11,168 776 – 11,944 11,978 827 – 12,805 Canadian provincial and municipal governments 3,798 2,214 – 6,012 3,315 3,547 – 6,862 U.S. federal government 15,068 907 – 15,975 16,823 – – 16,823 U.S. states, municipalities and agencies 1 4,159 1 4,161 14 3,640 1 3,655 Other governments 4,396 2,939 – 7,335 3,143 1,647 – 4,790 NHA MBS and U.S. agency MBS and CMO – 14,000 – 14,000 – 13,687 – 13,687 Corporate debt 2,205 2,802 – 5,007 1,959 1,797 – 3,756 Corporate equity – – 81 81 – – 62 62 36,636 27,797 82 64,515 37,232 25,145 63 62,440 Business and Government Loans – 442 1,736 2,178 – – 1,450 1,450 Fair Value Liabilities Securities sold but not yet purchased 22,393 3,860 – 26,253 26,336 2,468 – 28,804 Structured note liabilities and other note liabilities – 15,829 – 15,829 – 14,186 – 14,186 Annuity liabilities – 1,043 – 1,043 – 800 – 800 22,393 20,732 – 43,125 26,336 17,454 – 43,790 Derivative Assets Interest rate contracts 14 10,443 – 10,457 18 8,177 – 8,195 Foreign exchange contracts 7 9,262 – 9,269 16 12,983 – 12,999 Commodity contracts 329 817 – 1,146 166 1,894 – 2,060 Equity contracts 226 997 – 1,223 286 1,872 – 2,158 Credit default swaps – 49 – 49 – 10 – 10 576 21,568 – 22,144 486 24,936 – 25,422 Derivative Liabilities Interest rate contracts 11 7,943 – 7,954 14 7,838 – 7,852 Foreign exchange contracts 20 10,843 – 10,863 2 11,852 – 11,854 Commodity contracts 218 1,462 – 1,680 295 1,161 – 1,456 Equity contracts 103 2,896 – 2,999 246 2,183 1 2,430 Credit default swaps – 101 1 102 – 36 1 37 352 23,245 1 23,598 557 23,070 2 23,629 |
Significant Unobservable Inputs in Level 3 Instrument Valuations | The table below presents the fair values of our significant Level 3 financial instruments, the valuation techniques used to determine their fair values and the value ranges of significant unobservable inputs used in the valuations. We have not applied any other reasonably possible alternative assumption to the significant Level 3 categories of private equity investments, as the net asset values are provided by the investment or fund managers. As at October 31, 2019 (Canadian $ in millions, except as noted) Reporting line in fair value hierarchy table Fair value Valuation techniques Significant Range of input values (1) Low High Private equity (2) Corporate equity 1,984 Net asset value Net asset value na 5x na 16x Loans (3) Business and government loans 1,736 Discounted cash flows Discount margin 70 bps 115 bps NHA MBS and U.S. agency MBS and CMO NHA MBS and U.S. agency MBS and CMO 538 Discounted cash flows Prepayment rate 2 % 30 % Market comparable Comparability adjustment (4) (5.91 ) 8.57 (1) The low and high input values represent the highest and lowest actual level of inputs used to value a group of financial instruments in a particular product category. These input ranges do not reflect the level of input uncertainty, but are affected by the specific underlying instruments within each product category. The input ranges will therefore vary from period to period based on the characteristics of the underlying instruments held at each balance sheet date. (2) Included in private equity is $829 million of Federal Reserve Bank and U.S. Federal Home Loan Bank shares that we carry at cost, which approximates fair value, and hold to meet regulatory requirements. (3) The impact of assuming a 10 basis point increase or decrease in discount margin for business and government loans is $3 million. (4) Range of input values represents price per security adjustment. na – not applicable |
Summary of Changes in Level 3 Instruments Carried At Fair Value | The tables below present a reconciliation of all changes in Level 3 financial instruments during the years ended October 31, 2019 and 2018, including realized and unrealized gains (losses) included in earnings and other comprehensive income. Change in fair value For the year ended October 31, 2019 Balance Included in Included hensive Purchases Sales Maturities/ Transfers Transfers Fair value as Change in Trading Securities NHA MBS and U.S. agency MBS and CMO 255 (46 ) 1 654 (399 ) – 159 (86 ) 538 (16 ) Corporate debt 7 – – 44 (43 ) – – (1 ) 7 – Total trading securities 262 (46 ) 1 698 (442 ) – 159 (87 ) 545 (16 ) FVTPL Securities Corporate debt – – – – – – – – – – Corporate equity 1,825 21 (2 ) 421 (280 ) (1 ) – – 1,984 58 Total FVTPL securities 1,825 21 (2 ) 421 (280 ) (1 ) – – 1,984 58 FVOCI Securities Issued or guaranteed by: U.S. states, municipalities and agencies 1 – – – – – – – 1 na Corporate debt – – – – – – – – – na Corporate equity 62 – 2 17 – – – – 81 na Total FVOCI securities 63 – 2 17 – – – – 82 na Business and Government Loans 1,450 7 8 1,410 – (1,139 ) – – 1,736 – Fair Value Liabilities Securities sold but not yet purchased – – – (7 ) 7 – – – – – Total fair value liabilities – – – (7 ) 7 – – – – – Derivative Liabilities Equity contracts 1 – – – – – – (1 ) – – Credit default swaps 1 – – – – – 1 (1 ) 1 – Total derivative liabilities 2 – – – – – 1 (2 ) 1 – (1) Foreign exchange translation on trading securities held by foreign subsidiaries is included in other comprehensive income, net foreign operations. (2) Includes proceeds recovered on securities sold but not yet purchased. (3) Changes in unrealized gains (losses) on FVTPL securities still held on October 31, 2019 are included in earnings for the year. na – not applicable Change in fair value For the year ended October 31, 2018 (Canadian $ in millions) Balance Included in Included hensive Purchases Sales Maturities/ Settlement Transfers Transfers Fair value as Change in Trading Securities NHA MBS and U.S. agency MBS and CMO – (1 ) 4 306 (54 ) – – – 255 (5 ) Corporate debt – – – 7 – – – – 7 – Total t – (1 ) 4 313 (54 ) – – – 262 (5 ) FVTPL Securities Corporate debt 73 – (4 ) 5 – – – (74 ) – – Corporate equity 1,701 12 31 307 (161 ) (2 ) – (63 ) 1,825 5 Total FVTPL securities 1,774 12 27 312 (161 ) (2 ) – (137 ) 1,825 5 FVOCI Securities Issued or guaranteed by: U.S. states, municipalities and agencies 1 – – – – – – – 1 na Corporate debt 2 – – – – (2 ) – – – na Corporate equity – – – 62 – – – – 62 na Total FVOCI securities 3 – – 62 – (2 ) – – 63 na Business and Government Loans 2,372 (2 ) 24 604 – (1,548 ) – – 1,450 – Derivative Liabilities Equity contracts – – – – – – 1 – 1 – Credit default swaps – – – – – – 1 – 1 – Total derivative liabilities – – – – – – 2 – 2 – (1) Foreign exchange translation on trading securities held by foreign subsidiaries is included in other comprehensive income, net foreign operations. (2) Changes in unrealized gains (losses) on trading securities, derivative assets and derivative liabilities still held on October 31, 2018 are included in earnings for the year. na – not applicable |
Summary Of Trading Revenue | Net interest income arises from interest and dividends related to trading assets and liabilities and is reported net of interest expense associated with funding these assets and liabilities in the following table. (Canadian $ in millions) 2019 2018 2017 Interest rates 700 437 480 Foreign exchange 401 377 369 Equities 269 449 239 Commodities 145 63 84 Other 6 95 39 Total trading revenue 1,521 1,421 1,211 Reported as: Net interest income 1,223 716 1,127 Non-interest 298 705 84 Total trading revenue 1,521 1,421 1,211 |
Offsetting of Financial Asset_2
Offsetting of Financial Assets and Financial Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Amounts Not Offset in the Consolidated Balance Sheet | (Canadian $ in millions) 2019 Amounts not offset in the balance sheet Gross Amounts offset in Net amounts Impact of Securities Cash Net Financial Assets Securities borrowed or purchased under resale agreements 104,949 945 104,004 9,919 93,062 82 941 Derivative instruments 22,423 279 22,144 13,538 1,740 2,750 4,116 127,372 1,224 126,148 23,457 94,802 2,832 5,057 Financial Liabilities Derivative instruments 23,877 279 23,598 13,538 1,940 2,971 5,149 Securities lent or sold under repurchase agreements 87,601 945 86,656 9,919 76,501 4 232 111,478 1,224 110,254 23,457 78,441 2,975 5,381 (Canadian $ in millions) 2018 Amounts not offset in the balance sheet Gross Amounts offset in Net amounts Impact of Securities Cash Net Financial Assets Securities borrowed or purchased under resale agreements 86,635 1,584 85,051 13,516 70,479 – 1,056 Derivative instruments 25,721 299 25,422 15,575 505 3,576 5,766 112,356 1,883 110,473 29,091 70,984 3,576 6,822 Financial Liabilities Derivative instruments 23,928 299 23,629 15,575 600 1,492 5,962 Securities lent or sold under repurchase agreements 68,268 1,584 66,684 13,516 52,910 – 258 92,196 1,883 90,313 29,091 53,510 1,492 6,220 (1) Financial assets received/pledged as collateral are disclosed at fair value and are limited to the net balance sheet exposure (i.e. any over-collateralization is excluded from the table). (2) Certain amounts of collateral are restricted from being sold or repledged except in the event of default or the occurrence of other predetermined events. (3) Not intended to represent our actual exposure to credit risk. Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Capital Management (Tables)
Capital Management (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Regulatory Capital Measure and Risk-Weighted Assets | Regulatory Capital Measures, Risk-Weighted Assets and Leverage Exposures (Canadian $ in millions, except as noted) 2019 2018 Common Equity Tier 1 Capital 36,071 32,721 Tier 1 Capital 41,201 37,220 Total Capital 48,340 44,116 Common Equity Tier 1 Capital Risk-Weighted Assets 317,029 289,237 Tier 1 Capital Risk-Weighted Assets 317,029 289,420 Total Capital Risk-Weighted Assets 317,029 289,604 Leverage Exposures 956,493 876,106 Common Equity Tier 1 Capital Ratio 11.4% 11.3% Tier 1 Capital Ratio 13.0% 12.9% Total Capital Ratio 15.2% 15.2% Leverage Ratio 4.3% 4.2% |
Employee Compensation - Share_2
Employee Compensation - Share-Based Compensation (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Information about our Stock Option Plan | The following table summarizes information about our Stock Option Plan: (Canadian $, except as noted) 2019 2018 2017 Number of Weighted- Number of Weighted- Number of Weighted- Outstanding at beginning of year 6,095,201 72.19 7,525,296 72.05 9,805,299 77.41 Granted 931,047 89.90 705,398 100.63 723,431 96.90 Exercised 902,651 60.21 1,513,307 58.40 2,233,801 57.80 Forfeited/cancelled 4,756 98.96 152,417 86.85 13,243 66.89 Expired 10,534 103.79 469,769 153.40 756,390 195.02 Outstanding at end of year 6,108,307 76.59 6,095,201 72.19 7,525,296 72.05 Exercisable at end of year 3,507,803 64.57 3,782,481 61.39 4,584,375 67.42 Available for grant 2,487,645 3,405,239 3,811,157 (1) The weighted-average exercise prices reflect the conversion of foreign currency denominated options at the exchange rate as at October 31, 2019, October 31, 2018 and October 31, 2017, respectively. For foreign currency denominated options exercised or expired during the year, the weighted-average exercise prices are translated using the exchange rates as at the settlement date and expiry date, respectively. |
Summary of Options Outstanding and Exercisable by Range of Exercise Price | Options outstanding and exercisable at October 31, 2019 by range of exercise price were as follows: (Canadian $, except as noted) 2019 Options outstanding Options exercisable Range of exercise prices Number of Weighted- average remaining Weighted-average Number of Weighted- average remaining Weighted-average $50.01 to $60.00 1,229,196 1.7 56.42 1,229,196 1.7 56.42 $60.01 to $70.00 1,535,630 3.7 64.71 1,535,630 3.7 64.71 $70.01 to $80.00 1,082,146 5.7 77.59 741,659 5.5 77.75 $80.01 to $90.00 928,566 9.1 89.89 753 0.5 81.77 $90.01 and over (1) 1,332,769 7.6 98.81 565 0.5 99.02 (1) Certain options were issued as part of the acquisition of M&I. (2) The weighted-average exercise prices reflect the conversion of foreign currency denominated options at the exchange rate as at October 31, 2019. |
Summary of Further Information about our Stock Option Plan | The following table summarizes additional information about our Stock Option Plan: (Canadian $ in millions, except as noted) 2019 2018 2017 Unrecognized compensation cost for non-vested 6 5 5 Weighted-average period over which this cost will be recognized (in years) 2.6 2.6 2.7 Total intrinsic value of stock options exercised 36 67 90 Cash proceeds from stock options exercised 54 88 129 Weighted-average share price for stock options exercised (in dollars) 99.84 102.55 98.05 |
Summary of Ranges of Values used for each Option Pricing Assumption | To determine the fair value of the stock option tranches on the grant date, the following ranges of values were used for each option pricing assumption: 2019 2018 2017 Expected dividend yield 5.7% 4.1% 4.3% Expected share price volatility 20.0% – 20.1% 17.0% – 17.3% 18.4% – 18.8% Risk-free rate of return 2.5% 2.1% 1.7% – 1.8% Expected period until exercise (in years) 6.5 – 7.0 6.5 – 7.0 6.5 – 7.0 |
Employee Compensation - Pensi_2
Employee Compensation - Pension and Other Employee Future Benefits (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Asset Allocation Ranges and Weighted-average Actual Asset Allocations | The asset allocation ranges and weighted-average actual asset allocations of our primary pension plans, based on fair market values at October 31, are as follows: Pension benefit plans Target range Actual 2019 Actual 2018 Equities 20% – 50% 32% 37% Fixed income investments 25% – 55% 51% 46% Alternative strategies 15% – 45% 17% 17% Our pension and other employee future benefit plan assets are measured at fair value on a recurring basis. |
Summary of Plan Information for Past Three Years | A summary of plan information for the past three years is as follows: (Canadian $ in millions) Pension benefit plans Other employee future benefit plans 2019 2018 2017 2019 2018 2017 Defined benefit obligation 9,866 8,311 8,846 1,254 1,113 1,460 Fair value of plan assets 9,723 8,719 8,990 175 153 157 Surplus (deficit) and net defined benefit asset (liability) (143 ) 408 144 (1,079 ) (960 ) (1,303 ) Surplus (deficit) is comprised of: Funded or partially funded plans 36 573 339 46 37 28 Unfunded plans (179 ) (165 ) (195 ) (1,125 ) (997 ) (1,331 ) Surplus (deficit) and net defined benefit asset (liability) (143 ) 408 144 (1,079 ) (960 ) (1,303 ) |
Summary of Pension and Other Employee Future Benefit Expenses | Pension and Other Employee Future Benefit Expenses Pension and other employee future benefit expenses are determined as follows: (Canadian $ in millions) Pension benefit plans Other employee future benefit plans 2019 2018 2017 2019 2018 2017 Annual benefits expense Current service cost 193 210 254 9 26 32 Net interest (income) expense on net defined benefit (asset) liability (20 ) (10 ) 7 37 45 47 Past service cost (income) (5 ) 7 – – (277 ) – Administrative expenses 5 5 5 – – – Remeasurement of other long-term benefits – – – 6 (10 ) (6 ) Benefits expense 173 212 266 52 (216 ) 73 Canada and Quebec pension plan expense 82 76 75 – – – Defined contribution expense 170 153 123 – – – Total annual pension and other employee future benefit expenses recognized in the Consolidated Statement of Income 425 441 464 52 (216 ) 73 |
Summary of Weighted-average Assumptions Used to Determine Benefit Expenses | Weighted-Average Assumptions Pension benefit plans Other employee future benefit plans 2019 2018 2017 2019 2018 2017 Defined Benefit Expenses Discount rate at beginning of year (3)(4) 4.0% 3.5% 3.4% 4.1% 3.6% 3.6% Rate of compensation increase 2.4% 2.4% 2.8% 2.0% 2.0% 2.4% Assumed overall health care cost trend rate na na na 4.9% (1) 4.9% (1) 5.2% (2) Defined Benefit Obligation Discount rate at end of year 3.0% 4.0% 3.5% 3.0% 4.1% 3.6% Rate of compensation increase 2.1% 2.4% 2.4% 2.0% 2.0% 2.0% Assumed overall health care cost trend rate na na na 4.9% (1) 4.9% (1) 5.2% (2) (1) Trending to 4.1% in 2040 and remaining at that level thereafter. (2) Trending to 4.5% in 2031 and remaining at that level thereafter. (3) The pension benefit current service cost was calculated using a separate discount rate of 4.10%, 3.70% and 3.68% for 2019, 2018 and 2017, respectively. (4) The other employee future benefit plans current service cost was calculated using a separate discount rate of 4.20%, 3.76% and 3.78% for 2019, 2018 and 2017, respectively. na – not applicable |
Summary of Current Life Expectancies Underlying the Amounts of the Defined Benefit Obligations | The current life expectancies underlying the amounts of the defined benefit obligations for our primary plans are as follows: (Years) Canada United States 2019 2018 2019 2018 Life expectancy for those currently age 65 Males 23.7 23.7 21.7 21.9 Females 24.1 24.0 23.0 23.4 Life expectancy at age 65 for those currently age 45 Males 24.7 24.6 22.8 23.1 Females 25.0 25.0 24.2 24.5 |
Summary of Changes in Estimated Financial Positions of Defined Benefit Pension Plans and Other Employee Future Benefit Plans | Changes in the estimated financial positions of our defined benefit pension plans and other employee future benefit plans are as follows: (Canadian $ in millions, except as noted) Pension benefit plans Other employee future benefit plans 2019 2018 2019 2018 Defined benefit obligation Defined benefit obligation at beginning of year 8,311 8,846 1,113 1,460 U.S. plan merger (1) 46 – – – Current service cost 193 210 9 26 Past service cost (income) (5 ) 7 – (277 ) Interest cost 324 299 44 51 Benefits paid (456 ) (492 ) (53 ) (43 ) Employee contributions 17 15 5 5 Actuarial (gains) losses due to: Changes in demographic assumptions (9 ) (50 ) (22 ) (31 ) Changes in financial assumptions 1,345 (562 ) 161 (77 ) Plan member experience 92 16 (3 ) (4 ) Foreign exchange and other 8 22 – 3 Defined benefit obligation at end of year 9,866 8,311 1,254 1,113 Wholly or partially funded defined benefit obligation 9,687 8,146 129 116 Unfunded defined benefit obligation 179 165 1,125 997 Total defined benefit obligation 9,866 8,311 1,254 1,113 Fair value of plan assets Fair value of plan assets at beginning of year 8,719 8,990 153 157 U.S. plan merger (1) 43 – – – Interest income 344 309 7 6 Return on plan assets (excluding interest income) 795 (323 ) 23 (10 ) Employer contributions 256 213 40 35 Employee contributions 17 15 5 5 Benefits paid (456 ) (492 ) (53 ) (43 ) Administrative expenses (5 ) (5 ) – – Foreign exchange and other 10 12 – 3 Fair value of plan assets at end of year 9,723 8,719 175 153 Surplus (deficit) and net defined benefit asset (liability) at end of year (143 ) 408 (1,079 ) (960 ) Recorded in: Other assets 186 664 46 – Other liabilities (329 ) (256 ) (1,125 ) (960 ) Surplus (deficit) and net defined benefit asset (liability) at end of year (143 ) 408 (1,079 ) (960 ) Actuarial gains (losses) recognized in other comprehensive income Net actuarial gains (losses) on plan assets 795 (323 ) 23 (10 ) Actuarial gains (losses) on defined benefit obligation due to: Changes in demographic assumptions 9 50 21 30 Changes in financial assumptions (1,345 ) 562 (153 ) 72 Plan member experience (92 ) (16 ) 3 1 Foreign exchange and other (9 ) 6 – – Actuarial gains (losses) recognized in other comprehensive income for the year (642 ) 279 (106 ) 93 (1) In 2019, the benefit obligation and assets related to employees formerly included in a multi-employer plan, which was accounted for as a defined contribution plan, merged with the U.S. defined benefit pension plan. The impact of the merger was recognized as a remeasurement of the U.S. defined benefit pension plan. |
Summary of Fair Values of Plan Assets Held | The fair values of plan assets held by our primary plans as at October 31 are as follows: (Canadian $ in millions) 2019 2018 Quoted Unquoted Total Quoted Unquoted Total Cash and money market funds 156 6 162 114 – 114 Securities issued or guaranteed by: Canadian federal government 1 57 58 108 41 149 Canadian provincial and municipal governments 334 368 702 219 309 528 U.S. federal government 345 – 345 297 – 297 U.S. states, municipalities and agencies – – – – 12 12 Pooled funds 1,450 3,204 4,654 1,591 2,715 4,306 Derivative instruments – 8 8 1 (14 ) (13 ) Corporate debt – 1,354 1,354 6 1,055 1,061 Corporate equity 1,219 – 1,219 1,105 – 1,105 3,505 4,997 8,502 3,441 4,118 7,559 |
Summary of Changes in Number of Key Assumption | Defined benefit obligation (Canadian $ in millions, except as noted) Pension benefit plans Other employee future benefit plans Discount rate (%) 3.0 3.0 Impact of: 1% increase ($) (1,041 ) (122 ) 1% decrease ($) 1,324 153 Rate of compensation increase (%) 2.1 2.0 Impact of: 0.25% increase ($) 51 – (1) 0.25% decrease ($) (49 ) – (1) Mortality Impact of: 1 year shorter life expectancy ($) (185 ) (28 ) 1 year longer life expectancy ($) 182 29 Assumed overall health care cost trend rate (%) na 4.9 (2) Impact of: 1% increase ($) na 49 1% decrease ($) na (51 ) (1) The change in this assumption is immaterial. (2) Trending to 4.1% in 2040 and remaining at that level thereafter. na – not applicable |
Summary of Duration of Defined Benefit Obligation | The duration of the defined benefit obligation for our primary plans is as follows: (Years) 2019 2018 Canadian pension plans 15.2 14.0 U.S. pension plans 7.9 7.2 Canadian other employee future benefit plans 14.5 14.3 |
Summary of Cash Payments in Connection with Employee Future Benefit Plans | Cash payments we made during the year in connection with our employee future benefit plans are as follows: (Canadian $ in millions) Pension benefit plans Other employee future benefit plans 2019 2018 2017 2019 2018 2017 Contributions to defined benefit plans 203 154 187 – – – Contributions to defined contribution plans 170 153 123 – – – Benefits paid directly to pensioners 53 59 32 40 35 40 426 366 342 40 35 40 Our best estimate of the contributions and benefits paid directly to pensioners we expect to make for the year ending October 31, 2020 is approximately $277 million to our defined benefit pension plans and $43 million to our other employee future benefit plans. Benefit payments for fiscal 2020 are estimated to be $536 million. |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Provision for Income Taxes | Provision for Income Taxes (Canadian $ in millions) 2019 2018 2017 Consolidated Statement of Income Current Provision for income taxes for the current period 1,198 1,340 1,159 Adjustments in respect of current tax for prior periods (14 ) 20 18 Deferred Origination and reversal of temporary differences 327 268 171 Effect of changes in tax rates 3 425 (2 ) Previously unrecognized tax loss, tax credit or temporary difference for a prior period – (92 ) (54 ) 1,514 1,961 1,292 Other Comprehensive Income and Equity Income tax expense (recovery) related to: Unrealized gains (losses) on FVOCI debt securities (1) 140 (69 ) 21 Reclassification to earnings of (gains) on FVOCI debt securities (1) (26 ) (23 ) (36 ) Gains (losses) on derivatives designated as cash flow hedges 521 (432 ) (322 ) Reclassification to earnings of losses on derivatives designated as cash flow hedges 51 121 21 Hedging of unrealized (gains) losses on translation of net foreign operations (4 ) (56 ) 8 Gains (losses) on remeasurement of pension and other employee future benefit plans (196 ) 111 157 Gains (Losses) on remeasurement of own credit risk on financial liabilities designated at fair value 27 (6 ) (53 ) Unrealized gains on FVOCI equity securities 1 – na Share-based compensation – 10 (12 ) 514 (344 ) (216 ) Total provision for income taxes 2,028 1,617 1,076 (1) Fiscal 2017 represents available-for-sale na – not applicable due to IFRS 9 adoption. Certain comparative figures have been reclassified to conform with the current year’s presentation. Components of Total Provision for Income Taxes (Canadian $ in millions) 2019 2018 2017 Canada: Current income taxes Federal 791 501 470 Provincial 465 299 272 1,256 800 742 Canada: Deferred income taxes Federal (113 ) (44 ) (2 ) Provincial (66 ) (27 ) – (179 ) (71 ) (2 ) Total Canadian 1,077 729 740 Foreign: Current income taxes 308 233 186 Deferred income taxes 643 655 150 Total foreign 951 888 336 Total provision for income taxes 2,028 1,617 1,076 Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Summary of Reconciliation of Effective Tax Rates | Set out below is a reconciliation of our statutory tax rates and income taxes that would be payable at these rates to the effective income tax rates and provision for income taxes that we have recorded in our Consolidated Statement of Income: (Canadian $ in millions, except as noted) 2019 2018 2017 Combined Canadian federal and provincial income taxes at the statutory tax rate 1,934 26.6 % 1,972 26.6 % 1,764 26.6 % Increase (decrease) resulting from: Tax-exempt (220 ) (3.0 ) (226 ) (3.0 ) (409 ) (6.2 ) Foreign operations subject to different tax rates (158 ) (2.2 ) (110 ) (1.5 ) 22 0.3 Change in tax rate for deferred income taxes 3 – 425 5.7 (2 ) – Previously unrecognized tax loss, tax credit or temporary difference for a prior period – – (92 ) (1.2 ) (54 ) (0.8 ) Income attributable to investments in associates and joint ventures (37 ) (0.5 ) (39 ) (0.5 ) (103 ) (1.5 ) Adjustments in respect of current tax for prior periods (14 ) (0.2 ) 20 0.3 18 0.2 Other 6 0.1 11 0.1 56 0.9 Provision for income taxes in the Consolidated Statement of Income and effective tax rate 1,514 20.8 % 1,961 26.5 % 1,292 19.5 % |
Summary of Components of Deferred Income Tax Balances | Components of Deferred Income Tax Balances (Canadian $ in millions) Deferred Income Tax Asset (Liability) (1) Net asset, Benefit (expense) Benefit (expense) Translation Net asset, Allowance for credit losses 484 23 – 4 511 Employee future benefits 282 12 31 – 325 Deferred compensation benefits 494 (12 ) – 1 483 Other comprehensive income 195 – (331 ) (7 ) (143 ) Tax loss carryforwards 606 (462 ) – 1 145 Tax credits 415 (228 ) – 2 189 Premises and equipment (515 ) 234 – (1 ) (282 ) Pension benefits (121 ) (18 ) 166 – 27 Goodwill and intangible assets (201 ) (14 ) – (2 ) (217 ) Securities 38 12 – – 50 Other 288 123 – 9 420 Total 1,965 (330 ) (134 ) 7 1,508 (Canadian $ in millions) Deferred Income Tax Asset (Liability) (1) Net asset, Benefit (expense) Benefit (expense) Translation Net asset, Allowance for credit losses 684 (150 ) – (50 ) 484 Employee future benefits 416 (111 ) (23 ) – 282 Deferred compensation benefits 545 (50 ) – (1 ) 494 Other comprehensive income 50 – 138 7 195 Tax loss carryforwards 1,233 (628 ) – 1 606 Tax credits 454 (39 ) – – 415 Premises and equipment (664 ) 148 – 1 (515 ) Pension benefits (52 ) 19 (88 ) – (121 ) Goodwill and intangible assets (261 ) 60 – – (201 ) Securities 21 17 – – 38 Other 180 133 (10 ) (15 ) 288 Total 2,606 (601 ) 17 (57 ) 1,965 (1) Deferred tax assets of $1,568 million and $2,039 million and deferred tax liabilities of $60 million and $74 million as at October 31, 2019 and 2018, respectively, are presented on the balance sheet net by legal jurisdiction. (2) Includes IFRS 9 adoption (refer to Note 28). Certain comparative figures have been reclassified to conform with the current year’s presentation. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Basic and Diluted Earnings Per Share | The following table presents our basic and diluted earnings per share: Basic Earnings Per Common Share (Canadian $ in millions, except as noted) 2019 2018 2017 Net income attributable to equity holders of the bank 5,758 5,453 5,337 Dividends on preferred shares and distributions on other equity instruments (211 ) (184 ) (184 ) Net income available to common shareholders 5,547 5,269 5,153 Weighted-average number of common shares outstanding (in thousands) 638,881 642,930 649,650 Basic earnings per common share (Canadian $) 8.68 8.19 7.93 Diluted Earnings Per Common Share Net income available to common shareholders adjusted for impact of dilutive instruments 5,547 5,269 5,153 Weighted-average number of common shares outstanding (in thousands) 638,881 642,930 649,650 Effect of dilutive instruments Stock options potentially exercisable (1) 5,326 5,876 6,859 Common shares potentially repurchased (3,847 ) (3,893 ) (4,548 ) Weighted-average number of diluted common shares outstanding (in thousands) 640,360 644,913 651,961 Diluted earnings per common share (Canadian $) 8.66 8.17 7.90 (1) In computing diluted earnings per share, we excluded average stock options outstanding of 1,177,152, 1,101,938 and 1,330,564 with weighted-average exercise prices of $101.83, $127.45 and $182.70 for the years ended October 31, 2019, 2018 and 2017, respectively, as the average share price for the period did not exceed the exercise price. Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Commitments, Guarantees, Pled_2
Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Summary of Maximum Amount Payable Under Various Commitments | The maximum amount payable related to our various commitments is as follows: (Canadian $ in millions) 2019 2018 Financial Guarantees Standby letters of credit 21,395 18,458 Credit default swaps (1) 2,068 443 Other Credit Instruments Backstop liquidity facilities 5,550 5,627 Securities lending 4,102 4,939 Documentary and commercial letters of credit 1,272 1,263 Commitments to extend credit (2) 158,533 137,995 Other commitments 5,181 8,935 Total 198,101 177,660 (1) The fair value of the related derivatives included in our Consolidated Balance Sheet was $43 million as at October 31, 2019 ($8 million in 2018). (2) Commitments to extend credit exclude personal lines of credit and credit cards that are unconditionally cancellable at our discretion. |
Summary of Maximum Amount Payable Under Various Commitments | The following tables summarize our pledged assets and collateral, and the activities to which they relate: (Canadian $ in millions) 2019 2018 Bank Assets Cash and securities (1) Issued or guaranteed by the Government of Canada 5,633 7,784 Issued or guaranteed by a Canadian province, municipality or school corporation 5,465 7,143 Other 75,076 60,812 Mortgages, securities borrowed or purchased under resale agreements and other 125,035 115,256 211,209 190,995 (Canadian $ in millions) 2019 2018 Assets pledged in relation to: Central counterparties, payment systems and depositories 2,098 2,403 Bank of Canada 467 525 Foreign governments and central banks 3 3 Obligations related to securities sold under repurchase agreements 73,696 54,606 Securities borrowing and lending 48,892 50,388 Derivatives transactions 9,614 6,120 Securitization 30,120 28,710 Covered bonds 27,208 26,721 Other 19,111 21,519 Total pledged assets and collateral (1) 211,209 190,995 (1) Excludes cash pledged with central banks disclosed as restricted cash in Note 2. |
Summary of Changes In Provision Balance | Changes in the provision balance during the year were as follows: (Canadian $ in millions) 2019 2018 Balance at beginning of year 284 170 Additional provisions/increase in provisions 666 375 Provisions utilized (251 ) (250 ) Amounts reversed (32 ) (11 ) Foreign exchange and other 13 – Balance at end of year (1) 680 284 (1) Balance includes severance obligations, restructuring charges and legal provisions. |
Operating and Geographic Segm_2
Operating and Geographic Segmentation (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
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Schedule of Operating Segments | Our results and average assets, grouped by operating segment, are as follows: (Canadian $ in millions) Canadian U.S. P&C Wealth BMO CM Corporate Total 2019 Net interest income (2) 5,878 4,218 935 2,394 (537 ) 12,888 Non-interest 2,128 1,162 6,727 2,340 238 12,595 Total Revenue 8,006 5,380 7,662 4,734 (299 ) 25,483 Provision for (recovery of) credit losses on impaired loans 544 160 2 52 (7 ) 751 Provision for (recovery of) credit losses on performing loans 63 37 (2 ) 28 (5 ) 121 Total provision for (recovery of) credit losses 607 197 – 80 (12 ) 872 Insurance claims, commissions and changes in policy benefit liabilities – – 2,709 – – 2,709 Depreciation and amortization 338 456 262 149 – 1,205 Non-interest 3,516 2,683 3,260 3,112 854 13,425 Income (loss) before taxes and non-controlling 3,545 2,044 1,431 1,393 (1,141 ) 7,272 Provision for (recovery of) income taxes 919 433 371 307 (516 ) 1,514 Reported net income (loss) 2,626 1,611 1,060 1,086 (625 ) 5,758 Average Assets 237,995 126,584 40,951 342,347 85,375 833,252 (Canadian $ in millions) Canadian U.S. P&C Wealth BMO CM Corporate Total 2018 Net interest income (2) 5,541 3,843 826 1,784 (556 ) 11,438 Non-interest 2,069 1,096 5,475 2,579 248 11,467 Total Revenue 7,610 4,939 6,301 4,363 (308 ) 22,905 Provision for (recovery of) credit losses on impaired loans 466 258 6 (17 ) (13 ) 700 Provision for (recovery of) credit losses on performing loans 3 (38 ) – (1 ) (2 ) (38 ) Total provision for (recovery of) credit losses 469 220 6 (18 ) (15 ) 662 Insurance claims, commissions and changes in policy benefit liabilities – – 1,352 – – 1,352 Depreciation and amortization 317 454 231 125 – 1,127 Non-interest 3,393 2,514 3,284 2,734 425 12,350 Income (loss) before taxes and non-controlling 3,431 1,751 1,428 1,522 (718 ) 7,414 Provision for (recovery of) income taxes 882 357 356 366 – 1,961 Reported net income (loss) 2,549 1,394 1,072 1,156 (718 ) 5,453 Average Assets 224,554 110,351 35,913 307,087 76,390 754,295 (Canadian $ in millions) Canadian U.S. P&C Wealth BMO CM Corporate Total 2017 Net interest income (2) 5,261 3,551 722 2,501 (760 ) 11,275 Non-interest 2,079 1,005 5,496 2,075 177 10,832 Total Revenue 7,340 4,556 6,218 4,576 (583 ) 22,107 Provision for (recovery of) credit losses (3) 483 289 8 44 (78 ) 746 Insurance claims, commissions and changes in policy benefit liabilities – – 1,538 – – 1,538 Depreciation and amortization 308 433 242 120 – 1,103 Non-interest 3,226 2,458 3,113 2,666 626 12,089 Income (loss) before taxes and non-controlling 3,323 1,376 1,317 1,746 (1,131 ) 6,631 Provision for (recovery of) income taxes 823 358 350 471 (710 ) 1,292 Reported net income (loss) 2,500 1,018 967 1,275 (421 ) 5,339 Non-controlling – – 2 – – 2 Net Income (loss) attributable to equity holders of the bank 2,500 1,018 965 1,275 (421 ) 5,337 Average Assets 217,685 104,209 32,562 302,518 65,652 722,626 (1) Corporate Services includes Technology and Operations. (2) Operating groups report on a taxable equivalent basis – see Basis of Presentation section. (3) 2017 has not been restated to reflect the adoption of IFRS 9. Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Summary of Bank's Financial Results by Geographic Region | Our results and average assets, grouped by geographic region, are as follows: (Canadian $ in millions) Canada United States Other countries Total 2019 Total Revenue 15,134 8,282 2,067 25,483 Income before taxes 4,324 2,367 581 7,272 Reported net income 3,391 1,903 464 5,758 Average Assets 469,032 316,983 47,237 833,252 (Canadian $ in millions) Canada United States Other countries Total 2018 Total Revenue 13,632 7,273 2,000 22,905 Income before taxes 4,840 1,871 703 7,414 Reported net income 3,797 1,100 556 5,453 Average Assets 441,376 277,764 35,155 754,295 (Canadian $ in millions) Canada United States Other countries Total 2017 Total Revenue 13,365 7,015 1,727 22,107 Income before taxes and non-controlling 4,589 1,580 462 6,631 Reported net income 3,816 1,200 323 5,339 Average Assets 430,570 264,473 27,583 722,626 Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Significant Subsidiaries (Table
Significant Subsidiaries (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Summary of Significant Operating Subsidiaries | As at October 31, 2019, the bank, either directly or indirectly through its subsidiaries, controls the following significant operating subsidiaries. Significant subsidiaries (1)(2) Head or principal office Book value of shares owned by the Bank of Montreal Capital Markets (Holdings) Limited and subsidiaries, including: London, England 364 BMO Capital Markets Limited London, England Pyrford International Limited London, England Bank of Montreal (China) Co. Ltd. Beijing, China 449 Bank of Montreal Europe plc (3) Dublin, Ireland 1,042 Bank of Montreal Holding Inc. and subsidiaries, including: Toronto, Canada 31,175 Bank of Montreal Mortgage Corporation Calgary, Canada BMO Mortgage Corp. Vancouver, Canada BMO Investments Limited Hamilton, Bermuda BMO Reinsurance Limited St. Michaels, Barbados BMO Nesbitt Burns Holdings Corporation Toronto, Canada BMO Nesbitt Burns Inc. Toronto, Canada BMO Investments Inc. Toronto, Canada BMO InvestorLine Inc. Toronto, Canada BMO Financial Corp. and subsidiaries, including: Chicago, United States 23,396 BMO Asset Management Corp. and subsidiaries Chicago, United States BMO Capital Markets Corp. New York, United States BMO Family Office, LLC (4) Palo Alto, United States BMO Harris Bank National Association and subsidiaries, including: Chicago, United States BMO Harris Investment Company LLC Las Vegas, United States BMO Harris Financial Advisors, Inc. Chicago, United States BMO Harris Financing, Inc. and subsidiaries Chicago, United States BMO Global Asset Management (Europe) Limited and subsidiaries, including: London, England 677 BMO Asset Management (Holdings) plc and subsidiaries London, England BMO Life Insurance Company and subsidiaries, including: Toronto, Canada 1,285 BMO Life Holdings (Canada), ULC Halifax, Canada BMO Life Assurance Company Toronto, Canada BMO Trust Company Toronto, Canada 774 BMO Trustee Asia Limited Hong Kong, China 2 LGM (Bermuda) Limited and subsidiaries, including: Hamilton, Bermuda 154 BMO Global Asset Management (Asia) Limited Hong Kong, China LGM Investments Limited London, England (1) Each subsidiary is incorporated or organized under the laws of the state or country in which the principal office is situated, except for BMO Financial Corp., BMO Asset Management Corp., BMO Capital Markets Corp., BMO Harris Financial Advisors, Inc., BMO Harris Financing, Inc., and BMO Family Office, LLC, which are incorporated under the laws of the state of Delaware, United States. BMO Asset Management (Holdings) plc is incorporated under the laws of Scotland. (2) Unless otherwise noted, the bank, either directly or indirectly through its subsidiaries, owns 100% of the outstanding voting shares of each subsidiary. (3) Effective September 2, 2019, Bank of Montreal Ireland Public Limited Company changed its name to Bank of Montreal Europe Public Limited Company. (4) Effective January 1, 2019, CTC MyCFO, LLC changed its name to BMO Family Office, LLC. |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Text block [abstract] | |
Summary of Compensation of Key Management Personnel | The following table presents the compensation of our key management personnel: (Canadian $ in millions) 2019 2018 2017 Base salary and incentives 22 21 23 Post-employment benefits 2 2 1 Share-based payments (1) 43 31 38 Total key management personnel compensation 67 54 62 (1) Amounts included in share-based payments are the fair values of awards granted in the year. |
Summary of Carrying amount in Joint Venture and Associated Companies | The following table presents the carrying amount of our interests in joint ventures and associated companies accounted for under the equity method as well as our share of the income of those entities: (Canadian $ in millions) Joint ventures Associates 2019 2018 2019 2018 Carrying amount 343 231 501 471 Share of net income 99 107 52 60 |
Summary of Transaction With Joint Ventures and Associates | The following table presents transactions with our joint ventures and associates: (Canadian $ in millions) 2019 2018 Loans 169 195 Deposits 106 114 Fees paid for services received 69 71 Guarantees and commitments 76 65 |
Transition to IFRS 9 (Tables)
Transition to IFRS 9 (Tables) | 12 Months Ended |
Oct. 31, 2019 | |
Statement [Line Items] | |
Summary of Pre-transition IAS 39 and Corresponding IFRS 9 Classification and Measurement Categories, and Reconciles Carrying Amounts for Loans, Securities and Other Financial Assets | The following table shows the pre-transition (Canadian $ in millions) IAS 39 measurement IFRS 9 measurement IAS 39 carrying Reclassification Remeasurement IFRS 9 carrying Financial Assets Securities Trading Trading 99,069 (8,534 ) – 90,535 FVTPL – 8,534 – 8,534 Available-for-sale na 54,075 (54,075 ) – – FVOCI – 51,909 – 51,909 FVTPL – 2,081 – 2,081 Amortized cost – 85 – 85 Held-to-maturity Amortized cost 9,094 – (2 ) 9,092 Other Other 960 (333 ) – 627 FVTPL – 333 – 333 Total Securities 163,198 – (2 ) 163,196 Loans Residential mortgages Amortized cost Amortized cost 115,258 – – 115,258 Consumer instalment and other Amortized cost Amortized cost 61,944 – – 61,944 Credit cards Amortized cost Amortized cost 8,071 – – 8,071 Business and government Amortized cost Amortized cost 175,067 (2,372 ) – 172,695 FVTPL – 2,372 – 2,372 Total Loans 360,340 – – 360,340 Allowance for credit losses (1,833 ) – 154 (1,679 ) 358,507 – 154 358,661 Remaining financial assets (1) 127,706 – (6 ) 127,700 Financial Liabilities Allowance for credit losses on off-balance 163 – 76 239 Total pre-tax na – 70 na Total after-tax 3,066 (55 ) – 3,011 Total after-tax (2)(3) 23,709 55 44 23,808 Total after-tax 44,354 – 44 44,398 (1) Represents cash and cash equivalents, interest bearing deposits with banks, securities borrowed or purchased under resale agreements and other assets. Remeasurement represents the impact of the impairment provisions of IFRS 9 on these remaining financial assets. (2) Reclassification amount represents the after-tax pre-tax) available-for-sale (3) Remeasurement represents the after-tax pre-tax) na – not applicable due to IFRS 9 adoption. |
Schedule of Impact on Transition to IFRS 9 on Allowance for Credit Loss | The following table illustrates the impact of transition to IFRS 9 on the allowance for credit losses as of November 1, 2017. (Canadian $ in millions) IAS 39 collective IAS 39 specific IAS 39 Remeasurement IFRS 9 IFRS 9 Stage 1 IFRS 9 Stage 2 IFRS 9 Stage 3 Loans Residential mortgages 69 24 93 (20 ) 73 16 33 24 Consumer instalment and other 343 136 479 71 550 70 344 136 Credit cards 243 – 243 41 284 63 221 – Business and government 785 233 1,018 (246 ) 772 205 334 233 Total allowance for credit losses 1,440 393 1,833 (154 ) 1,679 354 932 393 Allowance for credit losses on remaining financial assets (1) – – – 8 8 7 1 – Allowance for credit losses on off-balance 136 27 163 76 239 89 123 27 Total 1,576 420 1,996 (70 ) 1,926 450 1,056 420 (1) Represents cash and cash equivalents, interest bearing deposits with banks, securities, securities borrowed or purchased under resale agreements and other assets. |
IFRS9 [member] | |
Statement [Line Items] | |
Summary of Classification of Securities | The securities balances by measurement category following the adoption of IFRS 9 as at November 1, 2017 were: (Canadian $ in millions) November 1, 2017 Trading 90,535 FVTPL 10,948 FVOCI 51,909 Amortized cost 9,177 Other 627 Total 163,196 |
IFRS 7 Disclosure - Credit and
IFRS 7 Disclosure - Credit and Counterparty Risk - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of credit risk exposure [line items] | ||
Credit assets exposure value | $ 249,762 | $ 238,400 |
Outstanding credit exposures | 969,100 | |
Canada [member] | ||
Disclosure of credit risk exposure [line items] | ||
Outstanding credit exposures | 467,900 | |
United States [member] | ||
Disclosure of credit risk exposure [line items] | ||
Outstanding credit exposures | 415,800 | |
Other Jurisdications [member] | ||
Disclosure of credit risk exposure [line items] | ||
Outstanding credit exposures | $ 85,400 | |
Credit risk [member] | Residential real estate loan [member] | ||
Disclosure of credit risk exposure [line items] | ||
Loan to value ratio | 80.00% |
IFRS 7 Disclosure - Credit an_2
IFRS 7 Disclosure - Credit and Counterparty Risk - Schedule of Total Non Trading Exposures (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | $ 969,111 | $ 859,801 |
Financial institutions [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 352,429 | 308,052 |
Government sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 69,071 | 55,739 |
Manufacturing sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 44,353 | 37,476 |
Real estate sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 46,956 | 40,525 |
Retail trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 27,104 | 24,137 |
Service industries sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 62,924 | 54,123 |
Wholesale trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 22,681 | 19,628 |
Oil and gas sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 26,510 | 21,345 |
Individual sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 249,762 | 238,400 |
Other sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 67,321 | 60,376 |
Drawn [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 577,599 | 510,341 |
Drawn [Member] | Financial institutions [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 117,959 | 102,552 |
Drawn [Member] | Government sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 58,051 | 44,552 |
Drawn [Member] | Manufacturing sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 26,266 | 22,580 |
Drawn [Member] | Real estate sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 37,146 | 31,534 |
Drawn [Member] | Retail trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 22,529 | 19,961 |
Drawn [Member] | Service industries sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 46,612 | 39,067 |
Drawn [Member] | Wholesale trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 16,843 | 14,659 |
Drawn [Member] | Oil and gas sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 13,406 | 9,131 |
Drawn [Member] | Individual sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 198,214 | 190,688 |
Drawn [Member] | Other sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 40,573 | 35,617 |
Undrawn commitments [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 156,304 | 142,526 |
Undrawn commitments [member] | Financial institutions [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 24,010 | 21,741 |
Undrawn commitments [member] | Government sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 1,665 | 2,118 |
Undrawn commitments [member] | Manufacturing sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 16,581 | 13,490 |
Undrawn commitments [member] | Real estate sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 8,948 | 8,170 |
Undrawn commitments [member] | Retail trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 3,974 | 3,617 |
Undrawn commitments [member] | Service industries sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 13,304 | 12,666 |
Undrawn commitments [member] | Wholesale trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 5,273 | 4,531 |
Undrawn commitments [member] | Oil and gas sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 11,302 | 10,410 |
Undrawn commitments [member] | Individual sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 51,433 | 47,586 |
Undrawn commitments [member] | Other sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 19,814 | 18,197 |
Over the counter derivatives [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 1,077 | 1,752 |
Over the counter derivatives [member] | Financial institutions [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 974 | 1,649 |
Over the counter derivatives [member] | Government sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 9 | 1 |
Over the counter derivatives [member] | Manufacturing sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 12 | 10 |
Over the counter derivatives [member] | Real estate sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 1 | 1 |
Over the counter derivatives [member] | Service industries sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 12 | 1 |
Over the counter derivatives [member] | Wholesale trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 1 | 2 |
Over the counter derivatives [member] | Other sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 68 | 88 |
Other off balance sheet items [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 22,595 | 19,687 |
Other off balance sheet items [Member] | Financial institutions [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 6,402 | 5,016 |
Other off balance sheet items [Member] | Government sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 894 | 667 |
Other off balance sheet items [Member] | Manufacturing sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 1,494 | 1,396 |
Other off balance sheet items [Member] | Real estate sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 861 | 820 |
Other off balance sheet items [Member] | Retail trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 601 | 559 |
Other off balance sheet items [Member] | Service industries sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 2,996 | 2,389 |
Other off balance sheet items [Member] | Wholesale trade sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 564 | 436 |
Other off balance sheet items [Member] | Oil and gas sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 1,802 | 1,804 |
Other off balance sheet items [Member] | Individual sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 115 | 126 |
Other off balance sheet items [Member] | Other sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 6,866 | 6,474 |
Repo style transactions [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 211,536 | 185,495 |
Repo style transactions [member] | Financial institutions [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | 203,084 | 177,094 |
Repo style transactions [member] | Government sector [member] | ||
Disclosure of credit risk exposure [line items] | ||
Total exposure at default | $ 8,452 | $ 8,401 |
IFRS 7 Disclosure - Credit an_3
IFRS 7 Disclosure - Credit and Counterparty Risk - Schedule of Total Non Trading Exposures (Parenthetical) (Detail) | 12 Months Ended |
Oct. 31, 2019 | |
Other sector [member] | |
Disclosure of credit risk exposure [line items] | |
Credit exposure ratio | 2.00% |
IFRS 7 Disclosure - Credit an_4
IFRS 7 Disclosure - Credit and Counterparty Risk - Summary of Gross Loans and Acceptances by Contractual Maturity and Country of Ultimate Risk (Detail) - Credit risk [member] - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | $ 451,537 | $ 404,215 |
Canada [member] | Loans to consumers [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 176,174 | 168,565 |
Canada [member] | Commercial and corporate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 84,098 | 74,142 |
Canada [member] | Commercial real estate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 21,873 | 18,815 |
United States [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 158,733 | 133,113 |
Other countries [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 10,659 | 9,580 |
Within 1 year [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 179,123 | 161,618 |
Within 1 year [member] | Canada [member] | Loans to consumers [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 58,580 | 54,375 |
Within 1 year [member] | Canada [member] | Commercial and corporate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 65,534 | 57,530 |
Within 1 year [member] | Canada [member] | Commercial real estate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 7,928 | 7,397 |
Within 1 year [member] | United States [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 37,867 | 33,688 |
Within 1 year [member] | Other countries [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 9,214 | 8,628 |
1 to 5 years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 229,839 | 209,124 |
1 to 5 years [member] | Canada [member] | Loans to consumers [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 113,162 | 109,991 |
1 to 5 years [member] | Canada [member] | Commercial and corporate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 16,591 | 14,862 |
1 to 5 years [member] | Canada [member] | Commercial real estate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 11,647 | 10,143 |
1 to 5 years [member] | United States [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 87,443 | 73,470 |
1 to 5 years [member] | Other countries [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 996 | 658 |
Over 5 years [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 42,575 | 33,473 |
Over 5 years [member] | Canada [member] | Loans to consumers [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 4,432 | 4,199 |
Over 5 years [member] | Canada [member] | Commercial and corporate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 1,973 | 1,750 |
Over 5 years [member] | Canada [member] | Commercial real estate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 2,298 | 1,275 |
Over 5 years [member] | United States [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | 33,423 | 25,955 |
Over 5 years [member] | Other countries [member] | ||
Disclosure of credit risk exposure [line items] | ||
Gross loans and acceptances | $ 449 | $ 294 |
IFRS 7 Disclosure - Credit an_5
IFRS 7 Disclosure - Credit and Counterparty Risk - Summary of Net Loans and Acceptances by Interest Rate Sensitivity (Detail) - Credit risk [member] - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of credit risk exposure [line items] | ||
Net loans and acceptances | $ 449,687 | $ 402,576 |
Fixed interest rate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Net loans and acceptances | 217,002 | 193,661 |
Floating interest rate [member] | ||
Disclosure of credit risk exposure [line items] | ||
Net loans and acceptances | 209,092 | 190,330 |
Non interest sensitive [member] | ||
Disclosure of credit risk exposure [line items] | ||
Net loans and acceptances | $ 23,593 | $ 18,585 |
IFRS 7 Disclosure - Market Risk
IFRS 7 Disclosure - Market Risk - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Hundred basis point increase [member] | ||
Market Risk [Line Items] | ||
Increase in earnings before tax | $ 27 | $ 37 |
Hundred basis point decrease [member] | ||
Market Risk [Line Items] | ||
Decrease in earnings before tax | 25 | 37 |
10% decrease in equity market values | ||
Market Risk [Line Items] | ||
Decrease in earnings before tax | 57 | 44 |
10% increase in equity market values | ||
Market Risk [Line Items] | ||
Increase in earnings before tax | $ 54 | $ 42 |
Market risk [member] | Value at risk [member] | ||
Market Risk [Line Items] | ||
Percentage of trading and underwriting portfolios | 99.00% | |
Value at risk holding period | 1 day | |
Market risk [member] | Stressed value at risk [member] | ||
Market Risk [Line Items] | ||
Percentage of trading and underwriting portfolios | 99.00% | |
Value at risk holding period | 1 day | |
Foreign exchange risk [member] | ||
Market Risk [Line Items] | ||
Increase (decrease) adjusted net income before income taxes | $ 16 |
IFRS 7 Disclosure - Market Ri_2
IFRS 7 Disclosure - Market Risk - Summary Total Trading Value at Risk (VaR) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Market Risk [Line Items] | ||
Market risk VaR | $ 19.2 | $ 56.3 |
Commodity price risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 1 | 0.7 |
Equity price risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 3 | 4.4 |
Foreign exchange risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 0.5 | 0.5 |
Interest rate risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 9.9 | 6.1 |
Credit specific [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 5.1 | 7.4 |
Risk diversification effect [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | (10.9) | (8.3) |
Market risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 8.6 | 10.8 |
Average [Member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 31.7 | 26.8 |
Average [Member] | Commodity price risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 1.4 | 0.9 |
Average [Member] | Equity price risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 4.6 | 4.4 |
Average [Member] | Foreign exchange risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 0.5 | 0.6 |
Average [Member] | Interest rate risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 6.5 | 5.9 |
Average [Member] | Credit specific [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 5.8 | 2.6 |
Average [Member] | Risk diversification effect [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | (9.8) | (6.8) |
Average [Member] | Market risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 9 | 7.6 |
Top of range [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 69.6 | 56.3 |
Top of range [member] | Commodity price risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 4.9 | 13.6 |
Top of range [member] | Equity price risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 12.6 | 7.8 |
Top of range [member] | Foreign exchange risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 1.4 | 2.2 |
Top of range [member] | Interest rate risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 10.6 | 8.7 |
Top of range [member] | Credit specific [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 9.2 | 7.4 |
Top of range [member] | Market risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 17.2 | 17.5 |
Bottom of range [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 16.5 | 16.6 |
Bottom of range [member] | Commodity price risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 0.6 | 0.3 |
Bottom of range [member] | Equity price risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 2.5 | 2.9 |
Bottom of range [member] | Foreign exchange risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 0.2 | 0.1 |
Bottom of range [member] | Interest rate risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 4.3 | 3.6 |
Bottom of range [member] | Credit specific [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | 4 | 1.5 |
Bottom of range [member] | Market risk [member] | ||
Market Risk [Line Items] | ||
Market risk VaR | $ 5.8 | $ 4.7 |
IFRS 7 Disclosure - Market Ri_3
IFRS 7 Disclosure - Market Risk - Structural Balance Sheet Interest Rate Sensitivity (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Hundred basis point increase [member] | ||
Market Risk [Line Items] | ||
Pre tax economic value sensitivity | $ (883.4) | $ (1,079.2) |
Pre tax earnings sensitivity over the next twelve month | 46.6 | 136.5 |
Hundred basis point decrease [member] | ||
Market Risk [Line Items] | ||
Pre tax economic value sensitivity | 215.6 | 626.5 |
Pre tax earnings sensitivity over the next twelve month | $ (80.3) | $ (304.1) |
Contractual Maturities of Asset
Contractual Maturities of Assets and Liabilities and Off-Balance Sheet Commitments - Summary of Remaining Contractual Maturity (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | ||
Assets | ||||||
Cash and cash equivalents | $ 48,803 | [1] | $ 42,142 | [1] | $ 32,599 | $ 31,653 |
Interest bearing deposits with banks | 7,987 | [1] | 8,305 | |||
Securities | 189,438 | [1] | 180,935 | |||
Securities borrowed or purchased under resale agreements | 104,004 | [1] | 85,051 | |||
Loans | ||||||
Residential mortgages | 123,740 | [1] | 119,620 | |||
Consumer instalment and other personal | 67,736 | [1] | 63,225 | |||
Credit cards | 8,859 | [1] | 8,329 | |||
Business and government | 227,609 | [1] | 194,456 | |||
Allowance for credit losses | (1,850) | [1] | (1,639) | |||
Loans,net | 426,094 | [1] | 383,991 | |||
Other Assets | ||||||
Derivative instruments | 22,144 | [1] | 25,422 | |||
Customers' liability under acceptances | 23,593 | [1] | 18,585 | |||
Other | 30,132 | 28,862 | ||||
Other assets | 75,869 | [1] | 72,869 | |||
Total Assets | 852,195 | [1] | 773,293 | |||
Deposits | ||||||
Deposits | 568,143 | [1] | 520,928 | |||
Other liabilities | ||||||
Derivative instruments | 23,598 | [1] | 23,629 | |||
Acceptances | 23,593 | [1] | 18,585 | |||
Securities sold but not yet purchased | 26,253 | [1] | 28,804 | |||
Securities lent or sold under repurchase agreements | 86,656 | [1] | 66,684 | |||
Current tax liabilities | 55 | [1] | 50 | |||
Deferred tax liabilities | 60 | [1] | 74 | |||
Securitization and structured entities' liabilities | 27,159 | [1] | 25,051 | |||
Other | 38,607 | [1] | 36,985 | |||
Total other liabilities | 225,981 | [1] | 199,862 | |||
Subordinated debt | 6,995 | [1] | 6,782 | |||
Total Equity | 51,076 | [1] | 45,721 | $ 44,345 | ||
Total Liabilities and Equity | 852,195 | [1] | 773,293 | |||
Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 162,016 | 141,434 | ||||
Backstop liquidity facilities [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 5,550 | 5,627 | ||||
Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 3,800 | 2,742 | ||||
Securities lending [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 4,102 | 4,939 | ||||
Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 926 | 1,793 | ||||
Banks [Member] | ||||||
Deposits | ||||||
Deposits | 23,816 | 27,907 | ||||
Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 343,157 | 312,177 | ||||
Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 201,170 | 180,844 | ||||
0 -1 month [member] | ||||||
Assets | ||||||
Cash and cash equivalents | 47,844 | 41,162 | ||||
Interest bearing deposits with banks | 4,088 | 4,964 | ||||
Securities | 2,680 | 4,522 | ||||
Securities borrowed or purchased under resale agreements | 75,936 | 67,804 | ||||
Loans | ||||||
Residential mortgages | 1,691 | 1,782 | ||||
Consumer instalment and other personal | 645 | 607 | ||||
Business and government | 12,490 | 13,088 | ||||
Loans,net | 14,826 | 15,477 | ||||
Other Assets | ||||||
Derivative instruments | 1,209 | 2,033 | ||||
Customers' liability under acceptances | 20,694 | 16,529 | ||||
Other | 1,951 | 1,740 | ||||
Other assets | 23,854 | 20,302 | ||||
Total Assets | 169,228 | 154,231 | ||||
Deposits | ||||||
Deposits | 36,872 | 43,072 | ||||
Other liabilities | ||||||
Derivative instruments | 1,329 | 1,496 | ||||
Acceptances | 20,694 | 16,529 | ||||
Securities sold but not yet purchased | 26,253 | 28,804 | ||||
Securities lent or sold under repurchase agreements | 83,681 | 63,496 | ||||
Securitization and structured entities' liabilities | 1 | 1,044 | ||||
Other | 12,325 | 8,548 | ||||
Total other liabilities | 144,283 | 119,917 | ||||
Total Liabilities and Equity | 181,155 | 162,989 | ||||
0 -1 month [member] | Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 1,868 | 1,472 | ||||
0 -1 month [member] | Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 32 | 34 | ||||
0 -1 month [member] | Securities lending [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 4,102 | 4,939 | ||||
0 -1 month [member] | Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 53 | 56 | ||||
0 -1 month [member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 12,177 | 16,966 | ||||
0 -1 month [member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 21,088 | 23,524 | ||||
0 -1 month [member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 3,607 | 2,582 | ||||
1 - 3 Months [member] | ||||||
Assets | ||||||
Interest bearing deposits with banks | 1,893 | 1,717 | ||||
Securities | 3,420 | 4,283 | ||||
Securities borrowed or purchased under resale agreements | 21,562 | 12,732 | ||||
Loans | ||||||
Residential mortgages | 2,059 | 1,848 | ||||
Consumer instalment and other personal | 519 | 440 | ||||
Business and government | 7,072 | 5,921 | ||||
Loans,net | 9,650 | 8,209 | ||||
Other Assets | ||||||
Derivative instruments | 1,867 | 3,379 | ||||
Customers' liability under acceptances | 2,562 | 1,988 | ||||
Other | 593 | 506 | ||||
Other assets | 5,022 | 5,873 | ||||
Total Assets | 41,547 | 32,814 | ||||
Deposits | ||||||
Deposits | 41,630 | 44,718 | ||||
Other liabilities | ||||||
Derivative instruments | 2,574 | 2,445 | ||||
Acceptances | 2,562 | 1,988 | ||||
Securities lent or sold under repurchase agreements | 1,459 | 2,249 | ||||
Securitization and structured entities' liabilities | 1,655 | 1,084 | ||||
Other | 3,188 | 5,568 | ||||
Total other liabilities | 11,438 | 13,334 | ||||
Total Liabilities and Equity | 53,068 | 58,052 | ||||
1 - 3 Months [member] | Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 3,777 | 3,610 | ||||
1 - 3 Months [member] | Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 66 | 70 | ||||
1 - 3 Months [member] | Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 98 | 388 | ||||
1 - 3 Months [member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 4,187 | 6,032 | ||||
1 - 3 Months [member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 28,511 | 32,231 | ||||
1 - 3 Months [member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 8,932 | 6,455 | ||||
3-6 month [member] | ||||||
Assets | ||||||
Interest bearing deposits with banks | 1,081 | 1,037 | ||||
Securities | 2,797 | 5,049 | ||||
Securities borrowed or purchased under resale agreements | 4,819 | 2,490 | ||||
Loans | ||||||
Residential mortgages | 5,285 | 4,343 | ||||
Consumer instalment and other personal | 991 | 1,026 | ||||
Business and government | 6,168 | 7,126 | ||||
Loans,net | 12,444 | 12,495 | ||||
Other Assets | ||||||
Derivative instruments | 877 | 1,638 | ||||
Customers' liability under acceptances | 173 | 65 | ||||
Other | 245 | 189 | ||||
Other assets | 1,295 | 1,892 | ||||
Total Assets | 22,436 | 22,963 | ||||
Deposits | ||||||
Deposits | 34,504 | 31,866 | ||||
Other liabilities | ||||||
Derivative instruments | 1,240 | 1,610 | ||||
Acceptances | 173 | 65 | ||||
Securities lent or sold under repurchase agreements | 760 | 8 | ||||
Securitization and structured entities' liabilities | 1,340 | 475 | ||||
Other | 33 | 44 | ||||
Total other liabilities | 3,546 | 2,202 | ||||
Total Liabilities and Equity | 38,050 | 34,068 | ||||
3-6 month [member] | Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 5,698 | 6,892 | ||||
3-6 month [member] | Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 98 | 99 | ||||
3-6 month [member] | Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 138 | 153 | ||||
3-6 month [member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 1,215 | 1,200 | ||||
3-6 month [member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 21,209 | 22,713 | ||||
3-6 month [member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 12,080 | 7,953 | ||||
6-9 month [member] | ||||||
Assets | ||||||
Interest bearing deposits with banks | 714 | 457 | ||||
Securities | 3,508 | 7,749 | ||||
Securities borrowed or purchased under resale agreements | 859 | 1,781 | ||||
Loans | ||||||
Residential mortgages | 6,818 | 6,306 | ||||
Consumer instalment and other personal | 1,272 | 1,143 | ||||
Business and government | 7,760 | 6,779 | ||||
Loans,net | 15,850 | 14,228 | ||||
Other Assets | ||||||
Derivative instruments | 830 | 1,002 | ||||
Customers' liability under acceptances | 159 | 3 | ||||
Other | 12 | 26 | ||||
Other assets | 1,001 | 1,031 | ||||
Total Assets | 21,932 | 25,246 | ||||
Deposits | ||||||
Deposits | 36,043 | 23,739 | ||||
Other liabilities | ||||||
Derivative instruments | 970 | 904 | ||||
Acceptances | 159 | 3 | ||||
Securities lent or sold under repurchase agreements | 450 | 931 | ||||
Securitization and structured entities' liabilities | 1,033 | 512 | ||||
Other | 29 | 34 | ||||
Total other liabilities | 2,641 | 2,384 | ||||
Total Liabilities and Equity | 38,684 | 26,123 | ||||
6-9 month [member] | Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 8,832 | 9,620 | ||||
6-9 month [member] | Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 97 | 101 | ||||
6-9 month [member] | Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 133 | 155 | ||||
6-9 month [member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 319 | 227 | ||||
6-9 month [member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 22,334 | 15,893 | ||||
6-9 month [member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 13,390 | 7,619 | ||||
9-12 month [Member] | ||||||
Assets | ||||||
Interest bearing deposits with banks | 211 | 112 | ||||
Securities | 4,670 | 4,943 | ||||
Securities borrowed or purchased under resale agreements | 518 | 191 | ||||
Loans | ||||||
Residential mortgages | 7,138 | 4,769 | ||||
Consumer instalment and other personal | 1,502 | 943 | ||||
Business and government | 6,547 | 6,218 | ||||
Loans,net | 15,187 | 11,930 | ||||
Other Assets | ||||||
Derivative instruments | 911 | 797 | ||||
Customers' liability under acceptances | 5 | |||||
Other | 5 | 6 | ||||
Other assets | 921 | 803 | ||||
Total Assets | 21,507 | 17,979 | ||||
Deposits | ||||||
Deposits | 34,903 | 19,271 | ||||
Other liabilities | ||||||
Derivative instruments | 1,032 | 631 | ||||
Acceptances | 5 | |||||
Securitization and structured entities' liabilities | 1,038 | 588 | ||||
Other | 74 | 184 | ||||
Total other liabilities | 2,149 | 1,403 | ||||
Total Liabilities and Equity | 37,052 | 20,674 | ||||
9-12 month [Member] | Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 12,511 | 11,345 | ||||
9-12 month [Member] | Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 96 | 100 | ||||
9-12 month [Member] | Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 137 | 158 | ||||
9-12 month [Member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 1,174 | 106 | ||||
9-12 month [Member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 18,023 | 8,629 | ||||
9-12 month [Member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 15,706 | 10,536 | ||||
1-2 years [member] | ||||||
Assets | ||||||
Interest bearing deposits with banks | 18 | |||||
Securities | 15,001 | 11,854 | ||||
Securities borrowed or purchased under resale agreements | 53 | |||||
Loans | ||||||
Residential mortgages | 22,309 | 24,522 | ||||
Consumer instalment and other personal | 4,823 | 5,414 | ||||
Business and government | 24,687 | 19,543 | ||||
Loans,net | 51,819 | 49,479 | ||||
Other Assets | ||||||
Derivative instruments | 2,375 | 3,333 | ||||
Other | 7 | 17 | ||||
Other assets | 2,382 | 3,350 | ||||
Total Assets | 69,202 | 64,754 | ||||
Deposits | ||||||
Deposits | 34,401 | 34,154 | ||||
Other liabilities | ||||||
Derivative instruments | 2,985 | 3,741 | ||||
Securitization and structured entities' liabilities | 5,350 | 4,912 | ||||
Other | 537 | 789 | ||||
Total other liabilities | 8,872 | 9,442 | ||||
Total Liabilities and Equity | 43,273 | 43,596 | ||||
1-2 years [member] | Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 21,574 | 21,056 | ||||
1-2 years [member] | Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 361 | 358 | ||||
1-2 years [member] | Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 111 | 615 | ||||
1-2 years [member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 0 | 0 | ||||
1-2 years [member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 22,983 | 22,418 | ||||
1-2 years [member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 11,418 | 11,736 | ||||
2-5 years [member] | ||||||
Assets | ||||||
Securities | 46,687 | 32,480 | ||||
Securities borrowed or purchased under resale agreements | 310 | |||||
Loans | ||||||
Residential mortgages | 68,143 | 64,636 | ||||
Consumer instalment and other personal | 22,391 | 19,910 | ||||
Business and government | 87,486 | 75,099 | ||||
Loans,net | 178,020 | 159,645 | ||||
Other Assets | ||||||
Derivative instruments | 5,095 | 5,816 | ||||
Other | 5 | 20 | ||||
Other assets | 5,100 | 5,836 | ||||
Total Assets | 230,117 | 197,961 | ||||
Deposits | ||||||
Deposits | 62,549 | 65,011 | ||||
Other liabilities | ||||||
Derivative instruments | 6,798 | 6,092 | ||||
Securities lent or sold under repurchase agreements | 306 | |||||
Securitization and structured entities' liabilities | 13,779 | 13,398 | ||||
Other | 3,596 | 4,455 | ||||
Total other liabilities | 24,479 | 23,945 | ||||
Total Liabilities and Equity | 87,028 | 88,956 | ||||
2-5 years [member] | Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 102,113 | 84,295 | ||||
2-5 years [member] | Backstop liquidity facilities [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 5,550 | 5,627 | ||||
2-5 years [member] | Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 931 | 770 | ||||
2-5 years [member] | Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 187 | 186 | ||||
2-5 years [member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 0 | 0 | ||||
2-5 years [member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 49,292 | 48,684 | ||||
2-5 years [member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 13,257 | 16,327 | ||||
Over 5 years [member] | ||||||
Assets | ||||||
Securities | 66,005 | 56,004 | ||||
Loans | ||||||
Residential mortgages | 10,297 | 11,414 | ||||
Consumer instalment and other personal | 11,947 | 9,812 | ||||
Business and government | 20,331 | 12,247 | ||||
Loans,net | 42,575 | 33,473 | ||||
Other Assets | ||||||
Derivative instruments | 8,980 | 7,424 | ||||
Other | 4,475 | 4,824 | ||||
Other assets | 13,455 | 12,248 | ||||
Total Assets | 122,035 | 101,725 | ||||
Deposits | ||||||
Deposits | 13,991 | 14,391 | ||||
Other liabilities | ||||||
Derivative instruments | 6,670 | 6,710 | ||||
Securitization and structured entities' liabilities | 2,963 | 3,038 | ||||
Other | 2,406 | 1,905 | ||||
Total other liabilities | 12,039 | 11,653 | ||||
Subordinated debt | 6,995 | 6,782 | ||||
Total Liabilities and Equity | 33,025 | 32,826 | ||||
Over 5 years [member] | Commitments to extend credit [Member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 5,643 | 3,144 | ||||
Over 5 years [member] | Operating lease commitments [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 2,119 | 1,210 | ||||
Over 5 years [member] | Purchase obligations [member] | ||||||
Off-Balance Sheet Commitments | ||||||
Off-Balance Sheet Commitments | 69 | 82 | ||||
Over 5 years [member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 201 | 0 | ||||
Over 5 years [member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 11,759 | 11,809 | ||||
Over 5 years [member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | 2,031 | 2,582 | ||||
No maturity [member] | ||||||
Assets | ||||||
Cash and cash equivalents | 959 | 980 | ||||
Securities | 44,670 | 54,051 | ||||
Loans | ||||||
Consumer instalment and other personal | 23,646 | 23,930 | ||||
Credit cards | 8,859 | 8,329 | ||||
Business and government | 55,068 | 48,435 | ||||
Allowance for credit losses | (1,850) | (1,639) | ||||
Loans,net | 85,723 | 79,055 | ||||
Other Assets | ||||||
Other | 22,839 | 21,534 | ||||
Other assets | 22,839 | 21,534 | ||||
Total Assets | 154,191 | 155,620 | ||||
Deposits | ||||||
Deposits | 273,250 | 244,706 | ||||
Other liabilities | ||||||
Current tax liabilities | 55 | 50 | ||||
Deferred tax liabilities | 60 | 74 | ||||
Other | 16,419 | 15,458 | ||||
Total other liabilities | 16,534 | 15,582 | ||||
Total Equity | 51,076 | 45,721 | ||||
Total Liabilities and Equity | 340,860 | 306,009 | ||||
No maturity [member] | Banks [Member] | ||||||
Deposits | ||||||
Deposits | 4,543 | 3,376 | ||||
No maturity [member] | Business and governments [member] | ||||||
Deposits | ||||||
Deposits | 147,958 | 126,276 | ||||
No maturity [member] | Individuals [Member] | ||||||
Deposits | ||||||
Deposits | $ 120,749 | $ 115,054 | ||||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Basis of Presentation - Impacts
Basis of Presentation - Impacts of Applying IFRS 15 on Prior Period Consolidated Statement of Income (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | [1] | Oct. 31, 2018 | Oct. 31, 2017 | |
Non-Interest Revenue | ||||
Securities commissions and fees | $ 1,023 | $ 1,025 | $ 964 | |
Deposit and payment service charges | 1,204 | 1,134 | 1,109 | |
Card fees | 437 | 428 | 329 | |
Investment management and custodial fees | 1,747 | 1,749 | 1,627 | |
Underwriting and advisory fees | 986 | 943 | 1,044 | |
Other | 551 | 546 | 529 | |
Non-Interest Revenue | 12,595 | 11,467 | 10,832 | |
Non-Interest Expense | ||||
Employee compensation | 8,423 | 7,461 | 7,468 | |
Travel and business development | 545 | 519 | 540 | |
Professional fees | 568 | 572 | 569 | |
Other | 1,256 | 1,387 | 1,353 | |
Non-Interest Expense | 14,630 | 13,477 | 13,192 | |
Provision for income taxes | 1,514 | 1,961 | 1,292 | |
Net Income | $ 5,758 | 5,453 | 5,339 | |
Increase (decrease) due to application of IFRS 15 [member] | ||||
Non-Interest Revenue | ||||
Securities commissions and fees | (4) | (5) | ||
Deposit and payment service charges | (10) | (14) | ||
Card fees | (136) | (150) | ||
Investment management and custodial fees | 7 | 5 | ||
Underwriting and advisory fees | 7 | 8 | ||
Other | 4 | 3 | ||
Non-Interest Revenue | (132) | (153) | ||
Non-Interest Expense | ||||
Employee compensation | 2 | 1 | ||
Travel and business development | (154) | (153) | ||
Professional fees | 8 | 6 | ||
Other | 8 | 8 | ||
Non-Interest Expense | (136) | (138) | ||
Provision for income taxes | 1 | (4) | ||
Net Income | $ 3 | $ (11) | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Detail) $ in Millions | Nov. 01, 2019CAD ($) | Nov. 01, 2017CAD ($) | Oct. 31, 2019 |
Basis of presentation [line items] | |||
Increase in shareholders' equity before tax | $ 70 | ||
Increase in shareholders' equity after tax | $ 44 | ||
Increase (decrease) due to application of IFRS 16 [Member] | |||
Basis of presentation [line items] | |||
Increase in assets | $ 2,000 | ||
Increase in liabilities | 2,100 | ||
Decrease in equity before tax | 100 | ||
Decrease in equity after tax | $ 75 | ||
Decrease in captial ratio | 0.001 | ||
Bottom of range [member] | |||
Basis of presentation [line items] | |||
Proportion of voting rights held in associate | 20.00% | ||
Top of range [member] | |||
Basis of presentation [line items] | |||
Proportion of voting rights held in associate | 50.00% | ||
Useful lives of intangible assets other than goodwill | 15 years |
Cash and Interest Bearing Dep_3
Cash and Interest Bearing Deposits with Banks - Disclosure of Cash and Interest Bearing Deposits with Banks (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | ||
Cash and interest bearing deposits with banks [abstract] | ||||||
Cash and deposits with banks | $ 47,598 | $ 40,738 | ||||
Cheques and other items in transit, net | 1,205 | 1,404 | ||||
Total cash and cash equivalents | $ 48,803 | [1] | $ 42,142 | [1] | $ 32,599 | $ 31,653 |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Cash and Interest Bearing Dep_4
Cash and Interest Bearing Deposits with Banks - Additional Information (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of cash and interest bearing deposits with banks [abstract] | ||
Reserves or minimum balances with central banks | $ 1,896 | $ 1,655 |
Securities - Additional Informa
Securities - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Disclosure of financial assets [line items] | ||||
Fair value through profit or loss ("FVTPL") securities | $ 13,704 | [1] | $ 11,611 | |
Fair value of investment through profit loss increase (decrease) in non-interest revenue, insurance revenue | 3,183 | [1] | 1,879 | $ 2,070 |
Amortized cost | 24,472 | [1] | 6,485 | |
FVOCI Securities | $ 64,515 | [1] | 62,440 | |
Bottom of range [member] | ||||
Disclosure of financial assets [line items] | ||||
Company own voting rights of shares | 20.00% | |||
Top of range [member] | ||||
Disclosure of financial assets [line items] | ||||
Company own voting rights of shares | 50.00% | |||
Debt securities [member] | ||||
Disclosure of financial assets [line items] | ||||
Amortized cost | $ 24,472 | 6,485 | ||
FVOCI Securities | 64,434 | 62,378 | ||
Allowance for credit losses of amortized cost | 1 | 1 | ||
Allowance for credit losses of FVOCI securities | 2 | 2 | ||
Equity securities [member] | ||||
Disclosure of financial assets [line items] | ||||
FVOCI Securities | 81 | 62 | ||
Mandatorily measured at fair value [member] | ||||
Disclosure of financial assets [line items] | ||||
Fair value through profit or loss ("FVTPL") securities | 2,899 | 2,828 | ||
Related to securities held by insurance subsidiaries [member] | ||||
Disclosure of financial assets [line items] | ||||
Fair value through profit or loss ("FVTPL") securities | 10,805 | 8,783 | ||
Unrealized gain loss through profit or loss from securities held by insurance subsidiary [member] | ||||
Disclosure of financial assets [line items] | ||||
Fair value of investment through profit loss increase (decrease) in non-interest revenue, insurance revenue | $ 1,006 | $ 372 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Securities - Schedule of Fair V
Securities - Schedule of Fair Value Measurement (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of financial assets [line items] | |||
Trading Securities | $ 85,903 | [1] | $ 99,697 |
FVTPL Securities | 13,704 | [1] | 11,611 |
FVOCI Securities | 64,515 | [1] | 62,440 |
Amortized Cost Securities | 24,472 | [1] | 6,485 |
Other Securities | 844 | [1] | 702 |
Total securities | 189,438 | [1] | 180,935 |
Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 64,515 | 62,440 | |
Amortized Cost Securities | 24,622 | 6,288 | |
Carrying amount [Member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 844 | 702 | |
Total carrying value or amortized cost of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 188,236 | 182,228 | |
Total value of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 189,438 | 180,935 | |
Total securities | 189,438 | 180,935 | |
Canadian Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 85,905 | 82,767 | |
United States of America, Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 100,573 | 96,266 | |
Other Currency [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 2,960 | 1,902 | |
Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 63,313 | 63,733 | |
Amortized Cost Securities | $ 24,472 | $ 6,485 | |
Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.23% | 2.13% | |
Canadian federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 8,330 | $ 10,320 | |
FVTPL Securities | 517 | 431 | |
Canadian federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 11,944 | 12,805 | |
Amortized Cost Securities | 4,534 | ||
Canadian federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 11,876 | $ 12,884 | |
Amortized Cost Securities | $ 4,532 | ||
Canadian federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.72% | 1.64% | |
Canadian provincial and municipal governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 7,527 | $ 8,702 | |
FVTPL Securities | 1,279 | 946 | |
Canadian provincial and municipal governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 6,012 | 6,862 | |
Amortized Cost Securities | 3,576 | 841 | |
Canadian provincial and municipal governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 5,907 | 6,896 | |
Amortized Cost Securities | $ 3,553 | $ 832 | |
Canadian provincial and municipal governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.34% | 1.90% | |
US federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 8,763 | $ 9,517 | |
FVTPL Securities | 48 | 69 | |
US federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 15,975 | 16,823 | |
Amortized Cost Securities | 6,214 | ||
US federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 15,363 | $ 17,403 | |
Amortized Cost Securities | $ 6,213 | ||
US federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.42% | 2.22% | |
US state municipal and agencies debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 674 | $ 1,216 | |
US state municipal and agencies debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 4,161 | 3,655 | |
US state municipal and agencies debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 4,091 | $ 3,694 | |
US state municipal and agencies debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.58% | 2.42% | |
Other governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 1,585 | $ 1,412 | |
FVTPL Securities | 49 | ||
Other governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 7,335 | 4,790 | |
Amortized Cost Securities | 1,049 | 10 | |
Other governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 7,179 | 4,818 | |
Amortized Cost Securities | $ 1,049 | $ 10 | |
Other governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.38% | 2.39% | |
NHA MBS US agency MBS and CMO [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 11,046 | $ 9,184 | |
FVTPL Securities | 5 | 7 | |
NHA MBS US agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 8,398 | 5,346 | |
NHA MBS US agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 8,274 | 5,552 | |
Corporate debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 7,718 | 9,198 | |
FVTPL Securities | 8,217 | 6,820 | |
Corporate debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 5,007 | 3,756 | |
Amortized Cost Securities | 851 | 91 | |
Corporate debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 4,899 | 3,783 | |
Amortized Cost Securities | $ 851 | $ 91 | |
Corporate debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.48% | 2.67% | |
Trading loans [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 103 | $ 199 | |
Corporate equity [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 40,157 | 49,949 | |
FVTPL Securities | 3,589 | 3,338 | |
Corporate equity [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 81 | 62 | |
Corporate equity [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 79 | 62 | |
National housing act and mortgage backed securities [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,970 | 2,370 | |
National housing act and mortgage backed securities [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 1,953 | $ 2,382 | |
National housing act and mortgage backed securities [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.18% | 1.98% | |
US Agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 12,030 | $ 11,317 | |
US Agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 11,966 | $ 11,811 | |
US Agency MBS and CMO [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.14% | 2.33% | |
Within 1 year [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 5,835 | ||
FVTPL Securities | 1,030 | ||
Within 1 year [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 9,611 | ||
Amortized Cost Securities | 600 | ||
Within 1 year [member] | Total carrying value or amortized cost of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 17,066 | ||
Within 1 year [member] | Total value of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 17,075 | ||
Total securities | 17,075 | ||
Within 1 year [member] | Canadian Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 13,507 | ||
Within 1 year [member] | United States of America, Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 2,691 | ||
Within 1 year [member] | Other Currency [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 877 | ||
Within 1 year [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 9,602 | ||
Amortized Cost Securities | $ 599 | ||
Within 1 year [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.55% | ||
Within 1 year [member] | Canadian federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 1,860 | ||
FVTPL Securities | 392 | ||
Within 1 year [member] | Canadian federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 5,617 | ||
Within 1 year [member] | Canadian federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 5,618 | ||
Within 1 year [member] | Canadian federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.60% | ||
Within 1 year [member] | Canadian provincial and municipal governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 921 | ||
FVTPL Securities | 12 | ||
Within 1 year [member] | Canadian provincial and municipal governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,406 | ||
Amortized Cost Securities | 291 | ||
Within 1 year [member] | Canadian provincial and municipal governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,406 | ||
Amortized Cost Securities | $ 290 | ||
Within 1 year [member] | Canadian provincial and municipal governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.67% | ||
Within 1 year [member] | US federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 859 | ||
FVTPL Securities | 48 | ||
Within 1 year [member] | US federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 8 | ||
Within 1 year [member] | US federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 5 | ||
Within 1 year [member] | US federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.90% | ||
Within 1 year [member] | US state municipal and agencies debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 232 | ||
Within 1 year [member] | US state municipal and agencies debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 389 | ||
Within 1 year [member] | US state municipal and agencies debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 389 | ||
Within 1 year [member] | US state municipal and agencies debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.93% | ||
Within 1 year [member] | Other governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 437 | ||
Within 1 year [member] | Other governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 951 | ||
Amortized Cost Securities | 3 | ||
Within 1 year [member] | Other governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 947 | ||
Amortized Cost Securities | $ 3 | ||
Within 1 year [member] | Other governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.27% | ||
Within 1 year [member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 226 | ||
Within 1 year [member] | NHA MBS US agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 131 | ||
Within 1 year [member] | NHA MBS US agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 131 | ||
Within 1 year [member] | Corporate debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 1,293 | ||
FVTPL Securities | 578 | ||
Within 1 year [member] | Corporate debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,197 | ||
Amortized Cost Securities | 175 | ||
Within 1 year [member] | Corporate debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,196 | ||
Amortized Cost Securities | $ 175 | ||
Within 1 year [member] | Corporate debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.28% | ||
Within 1 year [member] | Trading loans [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 7 | ||
Within 1 year [member] | National housing act and mortgage backed securities [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 30 | ||
Within 1 year [member] | National housing act and mortgage backed securities [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 29 | ||
Within 1 year [member] | National housing act and mortgage backed securities [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.13% | ||
Within 1 year [member] | US Agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 13 | ||
Within 1 year [member] | US Agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 12 | ||
Within 1 year [member] | US Agency MBS and CMO [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.16% | ||
1 to 3 years [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 10,759 | ||
FVTPL Securities | 90 | ||
1 to 3 years [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 13,941 | ||
Amortized Cost Securities | 4,685 | ||
1 to 3 years [member] | Total carrying value or amortized cost of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 29,301 | ||
1 to 3 years [member] | Total value of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 29,465 | ||
Total securities | 29,465 | ||
1 to 3 years [member] | Canadian Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 10,843 | ||
1 to 3 years [member] | United States of America, Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 18,392 | ||
1 to 3 years [member] | Other Currency [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 230 | ||
1 to 3 years [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 13,777 | ||
Amortized Cost Securities | $ 4,675 | ||
1 to 3 years [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.26% | ||
1 to 3 years [member] | Canadian federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 3,302 | ||
FVTPL Securities | 4 | ||
1 to 3 years [member] | Canadian federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,098 | ||
Amortized Cost Securities | 701 | ||
1 to 3 years [member] | Canadian federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,090 | ||
Amortized Cost Securities | $ 701 | ||
1 to 3 years [member] | Canadian federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.48% | ||
1 to 3 years [member] | Canadian provincial and municipal governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 1,122 | ||
FVTPL Securities | 10 | ||
1 to 3 years [member] | Canadian provincial and municipal governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,740 | ||
Amortized Cost Securities | 399 | ||
1 to 3 years [member] | Canadian provincial and municipal governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,720 | ||
Amortized Cost Securities | $ 399 | ||
1 to 3 years [member] | Canadian provincial and municipal governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.32% | ||
1 to 3 years [member] | US federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 3,677 | ||
1 to 3 years [member] | US federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 3,820 | ||
Amortized Cost Securities | 2,245 | ||
1 to 3 years [member] | US federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 3,770 | ||
Amortized Cost Securities | $ 2,236 | ||
1 to 3 years [member] | US federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.23% | ||
1 to 3 years [member] | US state municipal and agencies debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 124 | ||
1 to 3 years [member] | US state municipal and agencies debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 709 | ||
1 to 3 years [member] | US state municipal and agencies debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 703 | ||
1 to 3 years [member] | US state municipal and agencies debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.21% | ||
1 to 3 years [member] | Other governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 719 | ||
1 to 3 years [member] | Other governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,727 | ||
Amortized Cost Securities | 667 | ||
1 to 3 years [member] | Other governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,691 | ||
Amortized Cost Securities | $ 667 | ||
1 to 3 years [member] | Other governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.53% | ||
1 to 3 years [member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 171 | ||
FVTPL Securities | 5 | ||
1 to 3 years [member] | NHA MBS US agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 368 | ||
1 to 3 years [member] | NHA MBS US agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 366 | ||
1 to 3 years [member] | Corporate debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 1,613 | ||
FVTPL Securities | 71 | ||
1 to 3 years [member] | Corporate debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,378 | ||
Amortized Cost Securities | 305 | ||
1 to 3 years [member] | Corporate debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,336 | ||
Amortized Cost Securities | $ 306 | ||
1 to 3 years [member] | Corporate debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.76% | ||
1 to 3 years [member] | Trading loans [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 31 | ||
1 to 3 years [member] | National housing act and mortgage backed securities [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 411 | ||
1 to 3 years [member] | National housing act and mortgage backed securities [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 409 | ||
1 to 3 years [member] | National housing act and mortgage backed securities [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.71% | ||
1 to 3 years [member] | US Agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 58 | ||
1 to 3 years [member] | US Agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 58 | ||
1 to 3 years [member] | US Agency MBS and CMO [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.28% | ||
3 to 5 years [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 6,586 | ||
FVTPL Securities | 184 | ||
3 to 5 years [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 18,457 | ||
Amortized Cost Securities | 7,031 | ||
3 to 5 years [member] | Total carrying value or amortized cost of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 31,746 | ||
3 to 5 years [member] | Total value of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 32,221 | ||
Total securities | 32,221 | ||
3 to 5 years [member] | Canadian Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 13,417 | ||
3 to 5 years [member] | United States of America, Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 18,656 | ||
3 to 5 years [member] | Other Currency [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 148 | ||
3 to 5 years [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 17,982 | ||
Amortized Cost Securities | $ 6,994 | ||
3 to 5 years [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.38% | ||
3 to 5 years [member] | Canadian federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 1,414 | ||
FVTPL Securities | 2 | ||
3 to 5 years [member] | Canadian federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 3,106 | ||
Amortized Cost Securities | 3,021 | ||
3 to 5 years [member] | Canadian federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 3,059 | ||
Amortized Cost Securities | $ 3,018 | ||
3 to 5 years [member] | Canadian federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.01% | ||
3 to 5 years [member] | Canadian provincial and municipal governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 735 | ||
FVTPL Securities | 5 | ||
3 to 5 years [member] | Canadian provincial and municipal governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,503 | ||
Amortized Cost Securities | 1,481 | ||
3 to 5 years [member] | Canadian provincial and municipal governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,428 | ||
Amortized Cost Securities | $ 1,460 | ||
3 to 5 years [member] | Canadian provincial and municipal governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.63% | ||
3 to 5 years [member] | US federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 2,432 | ||
3 to 5 years [member] | US federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 5,222 | ||
Amortized Cost Securities | 1,339 | ||
3 to 5 years [member] | US federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 5,095 | ||
Amortized Cost Securities | $ 1,339 | ||
3 to 5 years [member] | US federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.15% | ||
3 to 5 years [member] | US state municipal and agencies debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 52 | ||
3 to 5 years [member] | US state municipal and agencies debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 991 | ||
3 to 5 years [member] | US state municipal and agencies debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 961 | ||
3 to 5 years [member] | US state municipal and agencies debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.57% | ||
3 to 5 years [member] | Other governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 296 | ||
FVTPL Securities | 49 | ||
3 to 5 years [member] | Other governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 3,582 | ||
Amortized Cost Securities | 334 | ||
3 to 5 years [member] | Other governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 3,466 | ||
Amortized Cost Securities | $ 334 | ||
3 to 5 years [member] | Other governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.56% | ||
3 to 5 years [member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 208 | ||
3 to 5 years [member] | NHA MBS US agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 654 | ||
3 to 5 years [member] | NHA MBS US agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 642 | ||
3 to 5 years [member] | Corporate debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 1,408 | ||
FVTPL Securities | 128 | ||
3 to 5 years [member] | Corporate debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,374 | ||
Amortized Cost Securities | 202 | ||
3 to 5 years [member] | Corporate debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,312 | ||
Amortized Cost Securities | $ 201 | ||
3 to 5 years [member] | Corporate debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 3.06% | ||
3 to 5 years [member] | Trading loans [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 41 | ||
3 to 5 years [member] | National housing act and mortgage backed securities [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,529 | ||
3 to 5 years [member] | National housing act and mortgage backed securities [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 1,515 | ||
3 to 5 years [member] | National housing act and mortgage backed securities [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.31% | ||
3 to 5 years [member] | US Agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 150 | ||
3 to 5 years [member] | US Agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 146 | ||
3 to 5 years [member] | US Agency MBS and CMO [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.95% | ||
5 to 10 years [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 5,471 | ||
FVTPL Securities | 1,139 | ||
5 to 10 years [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 12,004 | ||
Amortized Cost Securities | 7,118 | ||
5 to 10 years [member] | Total carrying value or amortized cost of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 25,155 | ||
5 to 10 years [member] | Total value of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 25,697 | ||
Total securities | 25,697 | ||
5 to 10 years [member] | Canadian Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 7,314 | ||
5 to 10 years [member] | United States of America, Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 18,373 | ||
5 to 10 years [member] | Other Currency [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 10 | ||
5 to 10 years [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 11,462 | ||
Amortized Cost Securities | $ 7,083 | ||
5 to 10 years [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.69% | ||
5 to 10 years [member] | Canadian federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 829 | ||
FVTPL Securities | 3 | ||
5 to 10 years [member] | Canadian federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,123 | ||
Amortized Cost Securities | 812 | ||
5 to 10 years [member] | Canadian federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,109 | ||
Amortized Cost Securities | $ 813 | ||
5 to 10 years [member] | Canadian federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.97% | ||
5 to 10 years [member] | Canadian provincial and municipal governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 1,170 | ||
FVTPL Securities | 53 | ||
5 to 10 years [member] | Canadian provincial and municipal governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 363 | ||
Amortized Cost Securities | 1,405 | ||
5 to 10 years [member] | Canadian provincial and municipal governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 353 | ||
Amortized Cost Securities | $ 1,404 | ||
5 to 10 years [member] | Canadian provincial and municipal governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 3.05% | ||
5 to 10 years [member] | US federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 1,620 | ||
5 to 10 years [member] | US federal government [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 6,925 | ||
Amortized Cost Securities | 2,630 | ||
5 to 10 years [member] | US federal government [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 6,493 | ||
Amortized Cost Securities | $ 2,638 | ||
5 to 10 years [member] | US federal government [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.74% | ||
5 to 10 years [member] | US state municipal and agencies debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 195 | ||
5 to 10 years [member] | US state municipal and agencies debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,065 | ||
5 to 10 years [member] | US state municipal and agencies debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 1,036 | ||
5 to 10 years [member] | US state municipal and agencies debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.67% | ||
5 to 10 years [member] | Other governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 133 | ||
5 to 10 years [member] | Other governments [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 75 | ||
Amortized Cost Securities | 45 | ||
5 to 10 years [member] | Other governments [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 75 | ||
Amortized Cost Securities | $ 45 | ||
5 to 10 years [member] | Other governments [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 3.17% | ||
5 to 10 years [member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 203 | ||
5 to 10 years [member] | NHA MBS US agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 2,116 | ||
5 to 10 years [member] | NHA MBS US agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 2,073 | ||
5 to 10 years [member] | Corporate debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 1,297 | ||
FVTPL Securities | 1,083 | ||
5 to 10 years [member] | Corporate debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 37 | ||
Amortized Cost Securities | 110 | ||
5 to 10 years [member] | Corporate debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 35 | ||
Amortized Cost Securities | $ 110 | ||
5 to 10 years [member] | Corporate debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 3.09% | ||
5 to 10 years [member] | Trading loans [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 24 | ||
5 to 10 years [member] | US Agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2,416 | ||
5 to 10 years [member] | US Agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 2,361 | ||
5 to 10 years [member] | US Agency MBS and CMO [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.81% | ||
Over 10 years [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 17,095 | ||
FVTPL Securities | 7,672 | ||
Over 10 years [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 10,421 | ||
Amortized Cost Securities | 5,188 | ||
Over 10 years [member] | Total carrying value or amortized cost of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 40,299 | ||
Over 10 years [member] | Total value of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 40,309 | ||
Total securities | 40,309 | ||
Over 10 years [member] | Canadian Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 14,102 | ||
Over 10 years [member] | United States of America, Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 26,204 | ||
Over 10 years [member] | Other Currency [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 3 | ||
Over 10 years [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 10,411 | ||
Amortized Cost Securities | $ 5,121 | ||
Over 10 years [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 2.06% | ||
Over 10 years [member] | Canadian federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 925 | ||
FVTPL Securities | 116 | ||
Over 10 years [member] | Canadian provincial and municipal governments [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 3,579 | ||
FVTPL Securities | 1,199 | ||
Over 10 years [member] | US federal government [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 175 | ||
Over 10 years [member] | US state municipal and agencies debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 71 | ||
Over 10 years [member] | US state municipal and agencies debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,007 | ||
Over 10 years [member] | US state municipal and agencies debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 1,002 | ||
Over 10 years [member] | US state municipal and agencies debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 3.00% | ||
Over 10 years [member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 10,238 | ||
Over 10 years [member] | NHA MBS US agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 5,129 | ||
Over 10 years [member] | NHA MBS US agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
Amortized Cost Securities | 5,062 | ||
Over 10 years [member] | Corporate debt [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 2,107 | ||
FVTPL Securities | 6,357 | ||
Over 10 years [member] | Corporate debt [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 21 | ||
Amortized Cost Securities | 59 | ||
Over 10 years [member] | Corporate debt [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 20 | ||
Amortized Cost Securities | $ 59 | ||
Over 10 years [member] | Corporate debt [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 3.32% | ||
Over 10 years [member] | US Agency MBS and CMO [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 9,393 | ||
Over 10 years [member] | US Agency MBS and CMO [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 9,389 | ||
Over 10 years [member] | US Agency MBS and CMO [member] | Financial assets at fair value through other comprehensive income [member] | |||
Disclosure of financial assets [line items] | |||
Yield (%) | 1.96% | ||
No maturity [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | $ 40,157 | ||
FVTPL Securities | 3,589 | ||
Total securities | 44,670 | $ 54,051 | |
No maturity [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 81 | ||
No maturity [member] | Carrying amount [Member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 844 | ||
No maturity [member] | Total carrying value or amortized cost of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 44,669 | ||
No maturity [member] | Total value of securities [member] | |||
Disclosure of financial assets [line items] | |||
Other Securities | 44,671 | ||
Total securities | 44,671 | ||
No maturity [member] | Canadian Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 26,722 | ||
No maturity [member] | United States of America, Dollar [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 16,257 | ||
No maturity [member] | Other Currency [member] | |||
Disclosure of financial assets [line items] | |||
Total securities | 1,692 | ||
No maturity [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 79 | ||
No maturity [member] | Corporate equity [member] | |||
Disclosure of financial assets [line items] | |||
Trading Securities | 40,157 | ||
FVTPL Securities | 3,589 | ||
No maturity [member] | Corporate equity [member] | Fair Value [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 81 | ||
No maturity [member] | Corporate equity [member] | Amortized Cost [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 79 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Securities - Schedule of Unreal
Securities - Schedule of Unrealized Gains and Losses (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 64,515 | [1] | $ 62,440 |
Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 63,313 | 63,733 | |
Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,263 | 45 | |
Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 61 | 1,338 | |
Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 64,515 | 62,440 | |
Canadian federal government [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 11,876 | 12,884 | |
Canadian federal government [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 72 | 1 | |
Canadian federal government [member] | Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 4 | 80 | |
Canadian federal government [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 11,944 | 12,805 | |
Canadian Provincial And Municipal Governments [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 5,907 | 6,896 | |
Canadian Provincial And Municipal Governments [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 106 | 8 | |
Canadian Provincial And Municipal Governments [member] | Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1 | 42 | |
Canadian Provincial And Municipal Governments [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 6,012 | 6,862 | |
US federal Government [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 15,363 | 17,403 | |
US federal Government [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 617 | 4 | |
US federal Government [member] | Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 5 | 584 | |
US federal Government [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 15,975 | 16,823 | |
US State Municipal And Agencies Debt [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 4,091 | 3,694 | |
US State Municipal And Agencies Debt [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 74 | 16 | |
US State Municipal And Agencies Debt [member] | Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 4 | 55 | |
US State Municipal And Agencies Debt [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 4,161 | 3,655 | |
Other governments [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 7,179 | 4,818 | |
Other governments [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 158 | 2 | |
Other governments [member] | Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2 | 30 | |
Other governments [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 7,335 | 4,790 | |
National housing act mortgage backed securities [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,953 | 2,382 | |
National housing act mortgage backed securities [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 18 | 6 | |
National housing act mortgage backed securities [member] | Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1 | 18 | |
National housing act mortgage backed securities [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 1,970 | 2,370 | |
US agency MBS and CMO [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 11,966 | 11,811 | |
US agency MBS and CMO [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 106 | 2 | |
US agency MBS and CMO [member] | Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 42 | 496 | |
US agency MBS and CMO [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 12,030 | 11,317 | |
Corporate debt [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 4,899 | 3,783 | |
Corporate debt [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 110 | 6 | |
Corporate debt [member] | Gross Unrealized Losses [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2 | 33 | |
Corporate debt [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 5,007 | 3,756 | |
Corporate equity [member] | Cost/Amortized cost [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 79 | 62 | |
Corporate equity [member] | Gross Unrealized Gains [Member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | 2 | ||
Corporate equity [member] | Fair value [member] | |||
Disclosure of financial assets [line items] | |||
FVOCI Securities | $ 81 | $ 62 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Securities - Summary of Interes
Securities - Summary of Interest, Dividend and Fee Income (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure Of interest, dividend and fee income [Line Items] | |||
Total | $ 1,887 | $ 1,306 | $ 812 |
Financial assets at fair value through profit or loss [member] | |||
Disclosure Of interest, dividend and fee income [Line Items] | |||
Total | 34 | 16 | |
Financial assets at fair value through other comprehensive income, category [member] | |||
Disclosure Of interest, dividend and fee income [Line Items] | |||
Total | 1,585 | 1,118 | |
Financial assets at amortised cost, category [member] | |||
Disclosure Of interest, dividend and fee income [Line Items] | |||
Total | $ 268 | $ 172 | |
Financial assets available-for-sale, category [member] | |||
Disclosure Of interest, dividend and fee income [Line Items] | |||
Total | 662 | ||
Held-to-maturity investments, category [member] | |||
Disclosure Of interest, dividend and fee income [Line Items] | |||
Total | $ 150 |
Securities - Summary of Non-Int
Securities - Summary of Non-Interest Revenue (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Interest Dividend and Fee Income [abstract] | ||||
FVTPL securities | $ 164 | $ 93 | ||
Gross realized gains | 363 | $ 228 | ||
Gross realized gains | 209 | |||
Gross realized (losses) | (216) | (99) | ||
Gross realized (losses) | (123) | |||
Other securities, net realized and unrealized gains | 49 | |||
Impairment losses | (1) | (1) | (7) | |
Securities gains, other than trading | $ 249 | [1] | $ 239 | $ 171 |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Securities - Summary of Non-I_2
Securities - Summary of Non-Interest Revenue (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Disclosure Of Non interest, dividend and fee income [Line Items] | ||||
Insurance revenue | $ 3,183 | [1] | $ 1,879 | $ 2,070 |
Interest,dividend and fee income [Member] | ||||
Disclosure Of Non interest, dividend and fee income [Line Items] | ||||
Insurance revenue | 407 | 354 | ||
Securities gains other than trading [Member] | ||||
Disclosure Of Non interest, dividend and fee income [Line Items] | ||||
Insurance revenue | $ 11 | $ 1 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Disclosure of detailed information about financial instruments [line items] | ||||
Average gross impaired loans | $ 2,285 | $ 2,115 | ||
Average impaired loans, net of the specific allowance | 1,864 | 1,706 | ||
Interest income on impaired loans | 80 | 67 | $ 75 | |
Net gain of sale of impaired and written-off loans | 11 | 4 | 28 | |
Allowances for credit losses | 2,094 | 1,870 | ||
Loans net of allowances | 426,094 | [1] | 383,991 | |
Carrying value of renegotiated loans | 229 | 253 | ||
Renegotiated loans written off | 36 | 53 | $ 36 | |
Real estate properties held for sale | 62 | 58 | ||
12-month expected credit losses [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Carrying value of renegotiated loans | 66 | 93 | ||
Allowance for credit losses related to loans [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Allowances for credit losses | 1,850 | 1,639 | ||
Allowance for credit losses related to other credit instruments [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Allowances for credit losses | 244 | 231 | ||
Financial assets impaired [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loans net of allowances | 2,166 | 1,566 | ||
Allowance on Individually identified impaired loans | 463 | 370 | ||
Gross impaired loans | 2,629 | 1,936 | ||
Loans past due but not classified as impaired | 2,166 | 1,566 | ||
Real estate properties held for sale received on foreclosed impaired loan | 125 | 117 | ||
Financial assets past due but not impaired [member] | 3-6 month [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Loans past due but not classified as impaired | 54 | 49 | ||
Related to performing loans, assuming 100% base case scenario [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Allowances for credit losses | 1,609 | 1,473 | ||
Modelled allowance account for credit losses of financial assets based on assumptions | 1,325 | 1,250 | ||
Related to performing loans, assuming 100% adverse scenario [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Allowances for credit losses | 1,609 | 1,473 | ||
Modelled allowance account for credit losses of financial assets based on assumptions | 2,800 | 2,650 | ||
Performing loans, stage one scenario [member] | ||||
Disclosure of detailed information about financial instruments [line items] | ||||
Allowances for credit losses | 1,609 | 1,473 | ||
Modelled allowance account for credit losses of financial assets based on assumptions | $ 1,050 | $ 1,000 | ||
Expected credit loss period | 12 months | |||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Summary of Credit Risk Exposures for Loans Carried at Amortized Cost or FVTPL (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | $ 969,100 | |
Allowance for credit losses | 2,094 | $ 1,870 |
Commitments and financial guarantee contracts | 969,111 | 859,801 |
Residential mortgages [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 123,676 | 119,544 |
Residential mortgages [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 64 | 76 |
Residential mortgages [member] | Gross carrying amount [member] | Default and impaired [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 414 | 375 |
Residential mortgages [member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 79,253 | 76,439 |
Residential mortgages [member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 23,674 | 21,454 |
Residential mortgages [member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 18,229 | 16,386 |
Residential mortgages [member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 521 | 535 |
Residential mortgages [member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,649 | 4,431 |
Consumer installment and other personal loans [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 67,200 | 62,687 |
Consumer installment and other personal loans [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 536 | 538 |
Consumer installment and other personal loans [member] | Gross carrying amount [member] | Default and impaired [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 468 | 521 |
Consumer installment and other personal loans [member] | Gross carrying amount [member] | Exceptionally low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 21,048 | 20,256 |
Consumer installment and other personal loans [member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 16,685 | 13,586 |
Consumer installment and other personal loans [member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 10,240 | 12,945 |
Consumer installment and other personal loans [member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 14,774 | 11,860 |
Consumer installment and other personal loans [member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,820 | 1,784 |
Consumer installment and other personal loans [member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 2,701 | 2,273 |
Credit Card Loans [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 8,623 | 8,099 |
Credit Card Loans [Member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 236 | 230 |
Credit Card Loans [Member] | Gross carrying amount [member] | Exceptionally low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 2,418 | 2,407 |
Credit Card Loans [Member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,230 | 1,151 |
Credit Card Loans [Member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,128 | 1,050 |
Credit Card Loans [Member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 2,896 | 2,616 |
Credit Card Loans [Member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 580 | 536 |
Credit Card Loans [Member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 607 | 569 |
Business and government loans [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 250,188 | 212,246 |
Business and government loans [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 1,014 | 795 |
Business and government loans [member] | Gross carrying amount [member] | Default and impaired [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,747 | 1,040 |
Business and government loans [member] | Gross carrying amount [member] | Investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 135,615 | 111,922 |
Business and government loans [member] | Gross carrying amount [member] | Sub investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 108,284 | 95,656 |
Business and government loans [member] | Gross carrying amount [member] | Watch list [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 5,556 | 4,423 |
Loan commitments and financial guarantee contracts issued [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 189,630 | 167,812 |
Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 244 | 231 |
Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Default and impaired [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 324 | 242 |
Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 135,804 | 117,830 |
Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Sub investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 51,613 | 48,321 |
Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Watch list [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 2,133 | 1,650 |
Stage One [member] | Residential mortgages [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 115,155 | 112,230 |
Stage One [member] | Residential mortgages [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 15 | 20 |
Stage One [member] | Residential mortgages [member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 79,011 | 76,314 |
Stage One [member] | Residential mortgages [member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 20,853 | 18,975 |
Stage One [member] | Residential mortgages [member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 13,651 | 12,621 |
Stage One [member] | Residential mortgages [member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 124 | 90 |
Stage One [member] | Residential mortgages [member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,531 | 4,250 |
Stage One [member] | Consumer installment and other personal loans [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 60,827 | 56,267 |
Stage One [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 82 | 83 |
Stage One [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Exceptionally low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 21,023 | 20,236 |
Stage One [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 16,491 | 13,364 |
Stage One [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 9,894 | 12,581 |
Stage One [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 10,510 | 7,707 |
Stage One [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 397 | 357 |
Stage One [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 2,594 | 2,105 |
Stage One [member] | Credit Card Loans [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 7,325 | 6,865 |
Stage One [member] | Credit Card Loans [Member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 43 | 39 |
Stage One [member] | Credit Card Loans [Member] | Gross carrying amount [member] | Exceptionally low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 2,418 | 2,403 |
Stage One [member] | Credit Card Loans [Member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,214 | 1,140 |
Stage One [member] | Credit Card Loans [Member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 970 | 943 |
Stage One [member] | Credit Card Loans [Member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 2,020 | 1,742 |
Stage One [member] | Credit Card Loans [Member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 140 | 108 |
Stage One [member] | Credit Card Loans [Member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 606 | 568 |
Stage One [member] | Business and government loans [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 231,055 | 197,890 |
Stage One [member] | Business and government loans [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 263 | 232 |
Stage One [member] | Business and government loans [member] | Gross carrying amount [member] | Investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 134,587 | 109,774 |
Stage One [member] | Business and government loans [member] | Gross carrying amount [member] | Sub investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 96,731 | 88,348 |
Stage One [member] | Loan commitments and financial guarantee contracts issued [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 179,979 | 160,895 |
Stage One [member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 119 | 108 |
Stage One [member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 134,920 | 116,108 |
Stage One [member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Sub investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 45,178 | 44,895 |
Stage Two [Member] | Residential mortgages [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 8,124 | 6,958 |
Stage Two [Member] | Residential mortgages [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 32 | 37 |
Stage Two [Member] | Residential mortgages [member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 242 | 125 |
Stage Two [Member] | Residential mortgages [member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 2,821 | 2,479 |
Stage Two [Member] | Residential mortgages [member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 4,578 | 3,765 |
Stage Two [Member] | Residential mortgages [member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 397 | 445 |
Stage Two [Member] | Residential mortgages [member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 118 | 181 |
Stage Two [Member] | Consumer installment and other personal loans [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 6,041 | 6,042 |
Stage Two [Member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 318 | 312 |
Stage Two [Member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Exceptionally low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 25 | 20 |
Stage Two [Member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 194 | 222 |
Stage Two [Member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 346 | 364 |
Stage Two [Member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 4,264 | 4,153 |
Stage Two [Member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,423 | 1,427 |
Stage Two [Member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 107 | 168 |
Stage Two [Member] | Credit Card Loans [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,298 | 1,234 |
Stage Two [Member] | Credit Card Loans [Member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 193 | 191 |
Stage Two [Member] | Credit Card Loans [Member] | Gross carrying amount [member] | Exceptionally low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 4 | |
Stage Two [Member] | Credit Card Loans [Member] | Gross carrying amount [member] | Very low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 16 | 11 |
Stage Two [Member] | Credit Card Loans [Member] | Gross carrying amount [member] | Low probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 158 | 107 |
Stage Two [Member] | Credit Card Loans [Member] | Gross carrying amount [member] | Medium probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 876 | 874 |
Stage Two [Member] | Credit Card Loans [Member] | Gross carrying amount [member] | High probability of default [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 440 | 428 |
Stage Two [Member] | Credit Card Loans [Member] | Gross carrying amount [member] | Not Rated [Member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1 | 1 |
Stage Two [Member] | Business and government loans [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 17,696 | 13,524 |
Stage Two [Member] | Business and government loans [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 441 | 355 |
Stage Two [Member] | Business and government loans [member] | Gross carrying amount [member] | Investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,028 | 2,148 |
Stage Two [Member] | Business and government loans [member] | Gross carrying amount [member] | Sub investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 11,553 | 7,308 |
Stage Two [Member] | Business and government loans [member] | Gross carrying amount [member] | Watch list [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 5,556 | 4,423 |
Stage Two [Member] | Loan commitments and financial guarantee contracts issued [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 9,349 | 6,702 |
Stage Two [Member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 103 | 96 |
Stage Two [Member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 884 | 1,722 |
Stage Two [Member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Sub investment grade [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 6,435 | 3,426 |
Stage Two [Member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Watch list [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 2,133 | 1,650 |
Stage three [member] | Residential mortgages [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 397 | 356 |
Stage three [member] | Residential mortgages [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 17 | 19 |
Stage three [member] | Residential mortgages [member] | Gross carrying amount [member] | Default and impaired [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 414 | 375 |
Stage three [member] | Consumer installment and other personal loans [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 332 | 378 |
Stage three [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 136 | 143 |
Stage three [member] | Consumer installment and other personal loans [member] | Gross carrying amount [member] | Default and impaired [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 468 | 521 |
Stage three [member] | Business and government loans [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,437 | 832 |
Stage three [member] | Business and government loans [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 310 | 208 |
Stage three [member] | Business and government loans [member] | Gross carrying amount [member] | Default and impaired [member] | ||
Disclosure of credit risk exposure [line items] | ||
Credit risk exposure for loans | 1,747 | 1,040 |
Stage three [member] | Loan commitments and financial guarantee contracts issued [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | 302 | 215 |
Stage three [member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | ||
Disclosure of credit risk exposure [line items] | ||
Allowance for credit losses | 22 | 27 |
Stage three [member] | Loan commitments and financial guarantee contracts issued [member] | Gross carrying amount [member] | Default and impaired [member] | ||
Disclosure of credit risk exposure [line items] | ||
Commitments and financial guarantee contracts | $ 324 | $ 242 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Summary of Continuity in Loss Allowance by Each Product Type (Detail) - CAD ($) $ in Millions | Nov. 01, 2017 | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of credit risk exposure [line items] | |||
Beginning balance | $ 1,870 | ||
Ending balance | 2,094 | $ 1,870 | |
IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 1,870 | ||
Ending balance | $ 1,926 | 2,094 | 1,870 |
IFRS9 [member] | Allowance for credit losses related to loans [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 1,639 | ||
Ending balance | 1,850 | 1,639 | |
IFRS9 [member] | Allowance for credit losses related to other credit instruments [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 231 | ||
Ending balance | 244 | 231 | |
Residential mortgages [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 99 | 102 | 99 |
Net remeasurement of loss allowance | 6 | 24 | |
Loan originations | 7 | 10 | |
Derecognitions and maturities | (6) | (8) | |
Total PCL | 7 | 26 | |
Write-offs | (19) | (20) | |
Recoveries of previous write-offs | 13 | 7 | |
Foreign exchange and other | (17) | (10) | |
Ending balance | 73 | 86 | 102 |
Consumer installment and other personal loans [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 570 | 560 | 570 |
Net remeasurement of loss allowance | 216 | 238 | |
Loan originations | 48 | 39 | |
Derecognitions and maturities | (56) | (68) | |
Total PCL | 208 | 209 | |
Write-offs | (306) | (301) | |
Recoveries of previous write-offs | 118 | 92 | |
Foreign exchange and other | (22) | (10) | |
Ending balance | 558 | 560 | |
Credit Card Loans [Member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 337 | 293 | 337 |
Net remeasurement of loss allowance | 264 | 198 | |
Loan originations | 20 | 19 | |
Derecognitions and maturities | (28) | (45) | |
Total PCL | 256 | 172 | |
Write-offs | (339) | (319) | |
Recoveries of previous write-offs | 93 | 103 | |
Foreign exchange and other | 2 | ||
Ending balance | 305 | 293 | |
Business and government loans [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 912 | 915 | 912 |
Net remeasurement of loss allowance | 389 | 263 | |
Loan originations | 199 | 163 | |
Derecognitions and maturities | (184) | (166) | |
Model changes | (10) | ||
Total PCL | 404 | 250 | |
Write-offs | (203) | (297) | |
Recoveries of previous write-offs | 66 | 59 | |
Foreign exchange and other | (37) | (9) | |
Ending balance | 772 | 1,145 | 915 |
Stage One [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 482 | ||
Ending balance | 522 | 482 | |
Stage One [member] | IFRS9 [member] | Allowance for credit losses related to loans [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 374 | ||
Ending balance | 403 | 374 | |
Stage One [member] | IFRS9 [member] | Allowance for credit losses related to other credit instruments [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 108 | ||
Ending balance | 119 | 108 | |
Stage One [member] | Residential mortgages [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 16 | 20 | 16 |
Transfer to Stage 1 | 27 | 34 | |
Transfer to Stage 2 | (2) | (1) | |
Net remeasurement of loss allowance | (35) | (37) | |
Loan originations | 7 | 10 | |
Derecognitions and maturities | (2) | (2) | |
Total PCL | (5) | 4 | |
Ending balance | 15 | 20 | |
Stage One [member] | Consumer installment and other personal loans [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 76 | 90 | 76 |
Transfer to Stage 1 | 174 | 214 | |
Transfer to Stage 2 | (18) | (22) | |
Transfer to Stage 3 | (5) | (4) | |
Net remeasurement of loss allowance | (183) | (196) | |
Loan originations | 48 | 39 | |
Derecognitions and maturities | (16) | (18) | |
Total PCL | 13 | ||
Foreign exchange and other | (1) | 1 | |
Ending balance | 89 | 90 | |
Stage One [member] | Credit Card Loans [Member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 83 | 74 | 83 |
Transfer to Stage 1 | 107 | 177 | |
Transfer to Stage 2 | (21) | (37) | |
Transfer to Stage 3 | (1) | (1) | |
Net remeasurement of loss allowance | (96) | (164) | |
Loan originations | 20 | 19 | |
Derecognitions and maturities | (4) | (3) | |
Total PCL | 5 | (9) | |
Foreign exchange and other | 1 | ||
Ending balance | 80 | 74 | |
Stage One [member] | Business and government loans [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 268 | 298 | 268 |
Transfer to Stage 1 | 201 | 136 | |
Transfer to Stage 2 | (50) | (31) | |
Transfer to Stage 3 | (1) | (1) | |
Net remeasurement of loss allowance | (214) | (155) | |
Loan originations | 199 | 163 | |
Derecognitions and maturities | (102) | (80) | |
Model changes | (7) | ||
Total PCL | 33 | 25 | |
Foreign exchange and other | 7 | 5 | |
Ending balance | 338 | 298 | |
Stage Two [Member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 991 | ||
Ending balance | 1,087 | 991 | |
Stage Two [Member] | IFRS9 [member] | Allowance for credit losses related to loans [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 895 | ||
Ending balance | 984 | 895 | |
Stage Two [Member] | IFRS9 [member] | Allowance for credit losses related to other credit instruments [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 96 | ||
Ending balance | 103 | 96 | |
Stage Two [Member] | Residential mortgages [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 34 | 38 | 34 |
Transfer to Stage 1 | (25) | (31) | |
Transfer to Stage 2 | 7 | 7 | |
Transfer to Stage 3 | (8) | (9) | |
Net remeasurement of loss allowance | 26 | 42 | |
Derecognitions and maturities | (4) | (6) | |
Total PCL | (4) | 3 | |
Foreign exchange and other | (1) | 1 | |
Ending balance | 33 | 38 | |
Stage Two [Member] | Consumer installment and other personal loans [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 357 | 326 | 357 |
Transfer to Stage 1 | (161) | (200) | |
Transfer to Stage 2 | 85 | 105 | |
Transfer to Stage 3 | (109) | (162) | |
Net remeasurement of loss allowance | 232 | 272 | |
Derecognitions and maturities | (40) | (50) | |
Total PCL | 7 | (35) | |
Foreign exchange and other | 4 | ||
Ending balance | 333 | 326 | |
Stage Two [Member] | Credit Card Loans [Member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 254 | 219 | 254 |
Transfer to Stage 1 | (107) | (177) | |
Transfer to Stage 2 | 21 | 37 | |
Transfer to Stage 3 | (173) | (195) | |
Net remeasurement of loss allowance | 288 | 342 | |
Derecognitions and maturities | (24) | (42) | |
Total PCL | 5 | (35) | |
Foreign exchange and other | 1 | ||
Ending balance | 225 | 219 | |
Stage Two [Member] | Business and government loans [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 410 | 408 | 410 |
Transfer to Stage 1 | (187) | (128) | |
Transfer to Stage 2 | 65 | 66 | |
Transfer to Stage 3 | (66) | (61) | |
Net remeasurement of loss allowance | 353 | 203 | |
Derecognitions and maturities | (82) | (86) | |
Model changes | (3) | ||
Total PCL | 83 | (9) | |
Foreign exchange and other | 5 | 7 | |
Ending balance | 496 | 408 | |
Stage three [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 397 | ||
Ending balance | 485 | 397 | |
Stage three [member] | IFRS9 [member] | Allowance for credit losses related to loans [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 370 | ||
Ending balance | 463 | 370 | |
Stage three [member] | IFRS9 [member] | Allowance for credit losses related to other credit instruments [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 27 | ||
Ending balance | 22 | 27 | |
Stage three [member] | Residential mortgages [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 49 | 44 | 49 |
Transfer to Stage 1 | (2) | (3) | |
Transfer to Stage 2 | (5) | (6) | |
Transfer to Stage 3 | 8 | 9 | |
Net remeasurement of loss allowance | 15 | 19 | |
Total PCL | 16 | 19 | |
Write-offs | (19) | (20) | |
Recoveries of previous write-offs | 13 | 7 | |
Foreign exchange and other | (16) | (11) | |
Ending balance | 38 | 44 | |
Stage three [member] | Consumer installment and other personal loans [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | 137 | 144 | 137 |
Transfer to Stage 1 | (13) | (14) | |
Transfer to Stage 2 | (67) | (83) | |
Transfer to Stage 3 | 114 | 166 | |
Net remeasurement of loss allowance | 167 | 162 | |
Total PCL | 201 | 231 | |
Write-offs | (306) | (301) | |
Recoveries of previous write-offs | 118 | 92 | |
Foreign exchange and other | (21) | (15) | |
Ending balance | 136 | 144 | |
Stage three [member] | Credit Card Loans [Member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Transfer to Stage 3 | 174 | 196 | |
Net remeasurement of loss allowance | 72 | 20 | |
Total PCL | 246 | 216 | |
Write-offs | (339) | (319) | |
Recoveries of previous write-offs | 93 | 103 | |
Stage three [member] | Business and government loans [member] | IFRS9 [member] | |||
Disclosure of credit risk exposure [line items] | |||
Beginning balance | $ 234 | 209 | 234 |
Transfer to Stage 1 | (14) | (8) | |
Transfer to Stage 2 | (15) | (35) | |
Transfer to Stage 3 | 67 | 62 | |
Net remeasurement of loss allowance | 250 | 215 | |
Total PCL | 288 | 234 | |
Write-offs | (203) | (297) | |
Recoveries of previous write-offs | 66 | 59 | |
Foreign exchange and other | (49) | (21) | |
Ending balance | $ 311 | $ 209 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Summary of Continuity in Loss Allowance by Each Product Type (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Other assets [member] | ||
Disclosure of credit risk exposure [line items] | ||
Provision for credit losses | $ (3) | $ 5 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Schedule of Loans and Allowance for Credit Losses by Geographic Region (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Loans, Gross amount | $ 427,944 | [1] | $ 385,630 |
Allowance for credit losses | 1,850 | [1] | 1,639 |
Loans, Net amount | 426,094 | [1] | 383,991 |
Allowance for credit losses related to loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans, Gross amount | 427,944 | 385,630 | |
Loans, Net amount | 426,094 | 383,991 | |
Allowance for credit losses related to loans [member] | Related to impaired loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Allowance for credit losses | 463 | 370 | |
Allowance for credit losses related to loans [member] | Related to performing loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Allowance for credit losses | 1,387 | 1,269 | |
Allowance for credit losses related to loans [member] | Canada [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans, Gross amount | 258,842 | 243,261 | |
Loans, Net amount | 257,895 | 242,383 | |
Allowance for credit losses related to loans [member] | Canada [member] | Related to impaired loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Allowance for credit losses | 207 | 189 | |
Allowance for credit losses related to loans [member] | Canada [member] | Related to performing loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Allowance for credit losses | 740 | 689 | |
Allowance for credit losses related to loans [member] | United States [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans, Gross amount | 158,454 | 132,789 | |
Loans, Net amount | 157,568 | 132,034 | |
Allowance for credit losses related to loans [member] | United States [member] | Related to impaired loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Allowance for credit losses | 256 | 181 | |
Allowance for credit losses related to loans [member] | United States [member] | Related to performing loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Allowance for credit losses | 630 | 574 | |
Allowance for credit losses related to loans [member] | Other countries [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Loans, Gross amount | 10,648 | 9,580 | |
Loans, Net amount | 10,631 | 9,574 | |
Allowance for credit losses related to loans [member] | Other countries [member] | Related to performing loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Allowance for credit losses | $ 17 | $ 6 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Schedule of Loans and Allowance for Credit Losses by Geographic Region (Parenthetical) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Other liabilities | $ 38,607 | [1] | $ 36,985 |
Allowance for credit losses on impaired loans, other credit instruments [Member] | Related to impaired loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other liabilities | 22 | 27 | |
Allowance for credit losses on performing loans, other credit instruments [member] | Related to performing loans [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other liabilities | $ 222 | $ 204 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Schedule of impaired loans, including the related allowances (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Financial assets impaired [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | $ 2,166 | $ 1,566 |
Financial assets impaired [member] | Canada [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 707 | 546 |
Financial assets impaired [member] | United States [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 1,459 | 1,020 |
Financial assets impaired [member] | Other countries [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 0 | |
Residential mortgages [member] | Financial assets impaired [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 397 | 356 |
Consumer installment and other personal [member] | Financial assets impaired [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 332 | 378 |
Business and government loans [member] | Financial assets impaired [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 1,437 | 832 |
Accumulated impairment [member] | Related to specific allowances [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 463 | 370 |
Accumulated impairment [member] | Related to specific allowances [member] | Canada [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 207 | 189 |
Accumulated impairment [member] | Related to specific allowances [member] | United States [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 256 | 181 |
Accumulated impairment [member] | Related to specific allowances [member] | Other countries [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 0 | |
Accumulated impairment [member] | Residential mortgages [member] | Related to specific allowances [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 17 | 19 |
Accumulated impairment [member] | Consumer installment and other personal [member] | Related to specific allowances [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 136 | 143 |
Accumulated impairment [member] | Business and government loans [member] | Related to specific allowances [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 310 | 208 |
Gross carrying amount [member] | Financial assets impaired [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 2,629 | 1,936 |
Gross carrying amount [member] | Financial assets impaired [member] | Canada [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 914 | 735 |
Gross carrying amount [member] | Financial assets impaired [member] | United States [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 1,715 | 1,201 |
Gross carrying amount [member] | Residential mortgages [member] | Financial assets impaired [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 414 | 375 |
Gross carrying amount [member] | Consumer installment and other personal [member] | Financial assets impaired [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 468 | 521 |
Gross carrying amount [member] | Business and government loans [member] | Financial assets impaired [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | $ 1,747 | $ 1,040 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Schedule of impaired loans, including the related allowances (Parenthetical) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of detailed information about financial instruments [line items] | |||
Other liabilities | $ 38,607 | [1] | $ 36,985 |
Accumulated impairment [member] | Allowance for credit losses related to other credit instruments [member] | Related to specific allowances [member] | |||
Disclosure of detailed information about financial instruments [line items] | |||
Other liabilities | $ 22 | $ 27 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Summary of Loans that are Past Due but not Classified as Impaired (Detail) - Financial assets past due but not impaired [member] - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | $ 4,007 | $ 4,062 |
Residential mortgages [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 1,287 | 1,194 |
Credit card, consumer installment and other personal loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 2,103 | 1,934 |
Business and government loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 617 | 934 |
90 days or more [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 162 | 164 |
90 days or more [member] | Residential mortgages [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 16 | 21 |
90 days or more [member] | Credit card, consumer installment and other personal loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 87 | 88 |
90 days or more [member] | Business and government loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 59 | 55 |
1 - 29 days [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 2,747 | 2,702 |
1 - 29 days [member] | Residential mortgages [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 806 | 660 |
1 - 29 days [member] | Credit card, consumer installment and other personal loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 1,590 | 1,431 |
1 - 29 days [member] | Business and government loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 351 | 611 |
1 - 3 Months [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 1,098 | 1,196 |
1 - 3 Months [member] | Residential mortgages [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 465 | 513 |
1 - 3 Months [member] | Credit card, consumer installment and other personal loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | 426 | 415 |
1 - 3 Months [member] | Business and government loans [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Total loans | $ 207 | $ 268 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Summary of Key Economic Variables Used in Base Case (Detail) | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Base Scenario [member] | Canada [member] | First Twelve Months [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 1.60% | 1.80% |
BBB | 2.30% | 2.30% |
Unemployment rates | 5.70% | 5.60% |
Housing price index | 1.80% | 1.40% |
Base Scenario [member] | Canada [member] | Remaining horizon [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 1.60% | 1.60% |
BBB | 2.30% | 2.30% |
Unemployment rates | 5.90% | 5.60% |
Housing price index | 2.50% | 1.80% |
Base Scenario [member] | United States [member] | First Twelve Months [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 1.80% | 2.40% |
BBB | 2.40% | 2.20% |
Unemployment rates | 3.70% | 3.60% |
Housing price index | 3.00% | 3.60% |
Base Scenario [member] | United States [member] | Remaining horizon [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 1.90% | 1.60% |
BBB | 2.40% | 2.30% |
Unemployment rates | 3.80% | 3.70% |
Housing price index | 2.70% | 3.00% |
Benign scenario [member] | Canada [member] | First Twelve Months [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 2.90% | 3.10% |
BBB | 2.00% | 2.00% |
Unemployment rates | 5.10% | 5.40% |
Housing price index | 3.70% | 2.40% |
Benign scenario [member] | Canada [member] | Remaining horizon [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 2.30% | 2.40% |
BBB | 2.10% | 2.10% |
Unemployment rates | 4.90% | 5.20% |
Housing price index | 3.60% | 2.60% |
Benign scenario [member] | United States [member] | First Twelve Months [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 2.40% | 2.90% |
BBB | 1.80% | 1.80% |
Unemployment rates | 3.30% | 3.20% |
Housing price index | 4.50% | 5.10% |
Benign scenario [member] | United States [member] | Remaining horizon [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 2.30% | 1.90% |
BBB | 2.00% | 2.00% |
Unemployment rates | 3.20% | 3.10% |
Housing price index | 4.10% | 4.30% |
Adverse scenario [member] | Canada [member] | First Twelve Months [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | (3.20%) | (3.20%) |
BBB | 4.70% | 4.70% |
Unemployment rates | 8.90% | 9.30% |
Housing price index | (12.80%) | (12.80%) |
Adverse scenario [member] | Canada [member] | Remaining horizon [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 0.80% | 0.80% |
BBB | 3.90% | 3.90% |
Unemployment rates | 8.90% | 9.30% |
Housing price index | (3.20%) | (3.20%) |
Adverse scenario [member] | United States [member] | First Twelve Months [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | (2.90%) | (2.90%) |
BBB | 4.30% | 4.30% |
Unemployment rates | 6.50% | 6.70% |
Housing price index | (7.30%) | (7.30%) |
Adverse scenario [member] | United States [member] | Remaining horizon [member] | ||
Disclosure of detailed information about financial instruments [line items] | ||
Real gross domestic product | 0.90% | 0.90% |
BBB | 3.40% | 3.50% |
Unemployment rates | 6.60% | 6.80% |
Housing price index | (1.20%) | (1.20%) |
Loans and Allowance for Cred_13
Loans and Allowance for Credit Losses - Summary of Key Economic Variables Used in Base Case (Parenthetical) (Detail) | 12 Months Ended |
Oct. 31, 2019 | |
Remaining horizon [member] | |
Disclosure of detailed information about financial instruments [line items] | |
Remaining forecast period | 2 years |
Transfer of Assets - Additional
Transfer of Assets - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | |||
Sale of mortgage loans | $ 6,692 | $ 8,062 | |
Securities lent or sold under repurchase agreements | 86,656 | [1] | 66,684 |
United States [member] | |||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | |||
Sale of mortgage loans | 460 | 936 | |
Mortgage servicing rights | 43 | 52 | |
Gain (loss) on sale of Mortgage loans | $ 15 | $ 21 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Transfer of Assets - Summary of
Transfer of Assets - Summary of Carrying Amount and Fair Value (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Carrying amount of assets | $ 17,229 | $ 17,209 |
Fair Value | 17,253 | 17,105 |
Carrying amount of associated liabilities | 16,993 | 16,925 |
Fair Value | 17,202 | 16,763 |
Residential mortgages [member] | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Carrying amount of assets | 6,357 | 5,569 |
Other related assets [member] | ||
Disclosure of transferred financial assets that are not derecognised in their entirety [line items] | ||
Carrying amount of assets | $ 10,872 | $ 11,640 |
Structured Entities - Summary o
Structured Entities - Summary of Carrying Amount and Fair Value (Detail) - Consolidated structured entities [member] - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Carrying amount [member] | ||
Disclosure of information about structured entities [Line Items] | ||
Assets | $ 14,335 | $ 14,073 |
Associated liabilities | 10,166 | 8,179 |
Fair Value | ||
Disclosure of information about structured entities [Line Items] | ||
Assets | 14,344 | 14,045 |
Associated liabilities | 10,209 | 8,134 |
Credit cards [Member] | Carrying amount [member] | ||
Disclosure of information about structured entities [Line Items] | ||
Assets | 7,747 | 7,246 |
Credit cards [Member] | Fair Value | ||
Disclosure of information about structured entities [Line Items] | ||
Assets | 7,747 | 7,246 |
Consumer installment and other personal [member] | Carrying amount [member] | ||
Disclosure of information about structured entities [Line Items] | ||
Assets | 5,872 | 6,827 |
Consumer installment and other personal [member] | Fair Value | ||
Disclosure of information about structured entities [Line Items] | ||
Assets | 5,876 | $ 6,799 |
Business And Government [member] | Carrying amount [member] | ||
Disclosure of information about structured entities [Line Items] | ||
Assets | 716 | |
Business And Government [member] | Fair Value | ||
Disclosure of information about structured entities [Line Items] | ||
Assets | $ 721 |
Structured Entities - Additiona
Structured Entities - Additional Information (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Securities [member] | BMO managed funds [member] | ||
Disclosure of information about structured entities [Line Items] | ||
Assets recognised | $ 1,728 | $ 1,612 |
U.S. customer securitization vehicle [member] | ||
Disclosure of information about structured entities [Line Items] | ||
Undrawn amount under liquidity facilities | 6,733 | 7,100 |
Capital and funding vehicles [member] | ||
Disclosure of information about structured entities [Line Items] | ||
Credit-linked notes issued | 325 | 325 |
Canadian customer securitization vehicles [member] | ||
Disclosure of information about structured entities [Line Items] | ||
Undrawn amount under liquidity facilities | $ 6,262 | $ 6,286 |
Structured Entities - Schedule
Structured Entities - Schedule of Unconsolidated Structured Entities (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | Oct. 31, 2016 | ||
Disclosure of unconsolidated structured entities [line items] | ||||||
Cash and cash equivalents | $ 48,803 | [1] | $ 42,142 | [1] | $ 32,599 | $ 31,653 |
Trading Securities | 85,903 | [1] | 99,697 | |||
FVTPL Securities | 13,704 | [1] | 11,611 | |||
FVOCI Securities | 64,515 | [1] | 62,440 | |||
Other | 16,580 | [1] | 14,677 | |||
Other | 225,981 | [1] | 199,862 | |||
Total assets of the entities | 852,195 | [1] | 773,293 | |||
Capital vehicles [member] | ||||||
Disclosure of unconsolidated structured entities [line items] | ||||||
Cash and cash equivalents | 547 | 118 | ||||
FVOCI Securities | 2 | |||||
Trading Loans | 7 | |||||
Other | 15 | 3 | ||||
Total assets | 562 | 130 | ||||
Deposits | 547 | 570 | ||||
Other | 9 | 17 | ||||
Total liabilities | 556 | 587 | ||||
Exposure to loss | 28 | |||||
Total assets of the entities | 556 | 587 | ||||
Canadian customer securitization vehicles [member] | ||||||
Disclosure of unconsolidated structured entities [line items] | ||||||
Cash and cash equivalents | 66 | 53 | ||||
Trading Securities | 8 | 12 | ||||
FVTPL Securities | 567 | 582 | ||||
FVOCI Securities | 616 | 242 | ||||
Other | 13 | |||||
Total assets | 1,257 | 902 | ||||
Deposits | 66 | 53 | ||||
Total liabilities | 66 | 53 | ||||
Exposure to loss | 7,453 | 7,135 | ||||
Total assets of the entities | $ 4,854 | $ 5,033 | ||||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Derivative Instruments - Additi
Derivative Instruments - Additional Information (Detail) - CAD ($) | 12 Months Ended | ||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |||
Disclosure of detailed information about financial instruments [line items] | |||||
Obligation to exercise the option | $ 54,000,000 | $ 88,000,000 | $ 129,000,000 | ||
Derivative instruments in a liability position | 5,736,000,000 | 2,860,000,000 | |||
Derivative instruments in a liability position, collateral posted | 5,660,000,000 | 2,963,000,000 | |||
Gains (losses) on derivatives designated as cash flow hedges arising during the year | [2] | 1,444,000,000 | [1] | (1,228,000,000) | (839,000,000) |
Gain (loss) related to cash flow hedges reclassified to profit or loss | [3] | (143,000,000) | [1] | (336,000,000) | (61,000,000) |
Gain on net increases in the fair value of the hedged item attributable to hedged risk | 1,945,000,000 | $ (2,331,000,000) | |||
Derivative fair value | 773,000,000 | ||||
IAS 39 [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Gains (losses) on derivatives designated as cash flow hedges arising during the year | (1,161,000,000) | ||||
Gain (loss) related to cash flow hedges reclassified to profit or loss | 188,000,000 | ||||
Net ineffectiveness recognized on cash flow hedges | (7,000,000) | ||||
Fair value loss on derivatives held in qualifying fair value hedging | (200,000,000) | ||||
Gain on net increases in the fair value of the hedged item attributable to hedged risk | $ 193,000,000 | ||||
Credit risk [member] | |||||
Disclosure of detailed information about financial instruments [line items] | |||||
Obligation to exercise the option | $ 0 | ||||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). | ||||
[2] | Net of income tax (provision) recovery of $(521) million, $432 million and $322 million for the year ended, respectively. | ||||
[3] | Net of income tax (recovery) of $(51) million, $(121) million and $(21) million for the year ended, respectively. |
Derivative Instruments - Schedu
Derivative Instruments - Schedule of Fair Value of Derivative Instruments (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Total | $ (23,598) | [1] | $ (23,629) |
Total fair value - trading derivatives | (586) | 3,021 | |
Total fair value - hedging derivatives | (868) | (1,228) | |
Total fair value - trading and hedging derivatives | (1,454) | 1,793 | |
Total | (1,454) | 1,793 | |
Trading Derivatives [Member] | Interest rate contracts [member] | Swap contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 1,754 | 1,376 | |
Trading Derivatives [Member] | Interest rate contracts [member] | Forward rate agreements [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (113) | 26 | |
Trading Derivatives [Member] | Interest rate contracts [member] | Futures contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (3) | (1) | |
Trading Derivatives [Member] | Interest rate contracts [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 632 | 425 | |
Trading Derivatives [Member] | Interest rate contracts [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (403) | (273) | |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | 188 | 241 | |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | (203) | (228) | |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency swaps [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | 1,011 | 684 | |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency interest rate contracts [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | (1,479) | (1,080) | |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Forward contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | 417 | 1,518 | |
Trading Derivatives [Member] | Commodity contract [member] | Swap contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | (519) | 475 | |
Trading Derivatives [Member] | Commodity contract [member] | Futures contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | 82 | 17 | |
Trading Derivatives [Member] | Commodity contract [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | 270 | 484 | |
Trading Derivatives [Member] | Commodity contract [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | (367) | (372) | |
Trading Derivatives [Member] | Equity contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | (1,800) | (244) | |
Trading Derivatives [Member] | Credit Contracts [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Credit Contracts | (96) | (35) | |
Trading Derivatives [Member] | Credit Contracts [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Credit Contracts | 43 | 8 | |
Hedging Derivatives [Member] | Interest rate contracts [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 1,272 | (1,243) | |
Interest rate contracts | (636) | 33 | |
Interest rate contracts | 636 | (1,210) | |
Hedging Derivatives [Member] | Foreign exchange contracts [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | (1,528) | 10 | |
Foreign exchange contracts | (1,528) | 10 | |
Hedging Derivatives [Member] | Equity contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | 24 | (28) | |
Hedging Derivatives [Member] | Equity contract [member] | Cash flow hedges [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | 24 | (28) | |
Gross assets [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Less: impact of master netting agreements | (13,538) | (15,575) | |
Total | 8,606 | 9,847 | |
Gross assets [member] | Fair value trading and hedging derivatives assets [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Total fair value - trading and hedging derivatives | 22,144 | 25,422 | |
Gross assets [member] | Trading Derivatives [Member] | Interest rate contracts [member] | Swap contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 7,588 | 7,013 | |
Gross assets [member] | Trading Derivatives [Member] | Interest rate contracts [member] | Forward rate agreements [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 44 | 36 | |
Gross assets [member] | Trading Derivatives [Member] | Interest rate contracts [member] | Futures contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 1 | 2 | |
Gross assets [member] | Trading Derivatives [Member] | Interest rate contracts [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 632 | 425 | |
Gross assets [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | 188 | 241 | |
Gross assets [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency swaps [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | 2,394 | 2,362 | |
Gross assets [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency interest rate contracts [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | 3,471 | 4,977 | |
Gross assets [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Forward contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | 2,796 | 4,335 | |
Gross assets [member] | Trading Derivatives [Member] | Commodity contract [member] | Swap contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | 754 | 1,559 | |
Gross assets [member] | Trading Derivatives [Member] | Commodity contract [member] | Futures contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | 122 | 17 | |
Gross assets [member] | Trading Derivatives [Member] | Commodity contract [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | 270 | 484 | |
Gross assets [member] | Trading Derivatives [Member] | Equity contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | 1,199 | 2,158 | |
Gross assets [member] | Trading Derivatives [Member] | Fair value trading derivatives assets [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Total fair value - trading derivatives | 19,508 | 23,619 | |
Gross assets [member] | Trading Derivatives [Member] | Credit Contracts [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Credit Contracts | 2 | 1 | |
Gross assets [member] | Trading Derivatives [Member] | Credit Contracts [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Credit Contracts | 47 | 9 | |
Gross assets [member] | Hedging Derivatives [Member] | Interest rate contracts [member] | Cash flow hedge in swaps asset [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 1,393 | 18 | |
Gross assets [member] | Hedging Derivatives [Member] | Interest rate contracts [member] | Fair value hedge in swaps asset [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 799 | 701 | |
Gross assets [member] | Hedging Derivatives [Member] | Interest rate contracts [member] | Assets swaps [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | 2,192 | 719 | |
Gross assets [member] | Hedging Derivatives [Member] | Foreign exchange contracts [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | 420 | 1,084 | |
Foreign exchange contracts | 420 | 1,084 | |
Gross assets [member] | Hedging Derivatives [Member] | Equity contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | 24 | ||
Gross assets [member] | Hedging Derivatives [Member] | Equity contract [member] | Cash flow hedges [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | 24 | ||
Gross assets [member] | Hedging Derivatives [Member] | Fair value hedging derivatives assets [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Total fair value - hedging derivatives | 2,636 | 1,803 | |
Gross Liabilities [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Less: impact of master netting agreements | 13,538 | 15,575 | |
Total | (10,060) | (8,054) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Interest rate contracts [member] | Swap contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (5,834) | (5,637) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Interest rate contracts [member] | Forward rate agreements [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (157) | (10) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Interest rate contracts [member] | Futures contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (4) | (3) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Interest rate contracts [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (403) | (273) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | (203) | (228) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency swaps [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | (1,383) | (1,678) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency interest rate contracts [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | (4,950) | (6,057) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Forward contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | (2,379) | (2,817) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Commodity contract [member] | Swap contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | (1,273) | (1,084) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Commodity contract [member] | Futures contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | (40) | ||
Gross Liabilities [member] | Trading Derivatives [Member] | Commodity contract [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Commodity contracts | (367) | (372) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Equity contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | (2,999) | (2,402) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Fair value trading derivatives assets [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Total fair value - trading derivatives | (20,094) | (20,598) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Credit Contracts [member] | Purchased call options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Credit Contracts | (98) | (36) | |
Gross Liabilities [member] | Trading Derivatives [Member] | Credit Contracts [member] | Written put options [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Credit Contracts | (4) | (1) | |
Gross Liabilities [member] | Hedging Derivatives [Member] | Interest rate contracts [member] | Cash flow hedge in swaps asset [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (121) | (1,261) | |
Gross Liabilities [member] | Hedging Derivatives [Member] | Interest rate contracts [member] | Fair value hedge in swaps asset [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (1,435) | (668) | |
Gross Liabilities [member] | Hedging Derivatives [Member] | Interest rate contracts [member] | Assets swaps [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Interest rate contracts | (1,556) | (1,929) | |
Gross Liabilities [member] | Hedging Derivatives [Member] | Foreign exchange contracts [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Foreign exchange contracts | (1,948) | (1,074) | |
Foreign exchange contracts | (1,948) | (1,074) | |
Gross Liabilities [member] | Hedging Derivatives [Member] | Equity contract [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | (28) | ||
Gross Liabilities [member] | Hedging Derivatives [Member] | Equity contract [member] | Cash flow hedges [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Equity contracts | (28) | ||
Gross Liabilities [member] | Hedging Derivatives [Member] | Fair value hedging derivatives liabilities [member] | |||
Disclosure Of Derivative Financial Instruments [Line Items] | |||
Total fair value - hedging derivatives | $ (3,504) | $ (3,031) | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Derivative Instruments - Sche_2
Derivative Instruments - Schedule of Notional Amounts of Trading Derivatives (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | $ 6,555,375 | $ 5,800,058 |
Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 5,235,210 | 4,562,936 |
Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 4,396,272 | 3,831,997 |
Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 1,144,590 | 1,070,741 |
Foreign exchange contracts [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 882 | 739 |
Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 604,728 | 548,148 |
Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 453,711 | 472,323 |
Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 76,968 | 76,097 |
Commodity contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 24,722 | 24,366 |
Commodity contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 32,422 | 33,104 |
Credit Contracts [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 7,429 | 3,490 |
Trading Derivatives [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 6,310,800 | 5,602,127 |
Trading Derivatives [Member] | Equity contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 90,862 | 86,412 |
Trading Derivatives [Member] | Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 5,048,131 | 4,415,702 |
Trading Derivatives [Member] | Interest rate swap contract [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 55,821 | 61,652 |
Trading Derivatives [Member] | Interest rate swap contract [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 65,933 | 65,232 |
Trading Derivatives [Member] | Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 4,209,193 | 3,684,763 |
Trading Derivatives [Member] | Interest rate swap contract [member] | Forward rate agreements [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 491,437 | 411,573 |
Trading Derivatives [Member] | Interest rate swap contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 225,747 | 192,482 |
Trading Derivatives [Member] | Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 1,087,410 | 1,020,426 |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 40,692 | 24,093 |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 44,577 | 25,438 |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 882 | 739 |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 47,977 | 57,226 |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency interest rate contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 499,571 | 449,187 |
Trading Derivatives [Member] | Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 453,711 | 463,743 |
Trading Derivatives [Member] | Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 76,968 | 76,097 |
Trading Derivatives [Member] | Commodity contract [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 10,223 | 9,485 |
Trading Derivatives [Member] | Commodity contract [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 9,601 | 9,142 |
Trading Derivatives [Member] | Commodity contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 24,722 | 24,366 |
Trading Derivatives [Member] | Commodity contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 32,422 | 33,104 |
Trading Derivatives [Member] | Credit Contracts [Member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 5,361 | 3,047 |
Trading Derivatives [Member] | Credit Contracts [Member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 2,068 | 443 |
Exchange Traded [Member] | Trading Derivatives [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 343,828 | 315,409 |
Exchange Traded [Member] | Trading Derivatives [Member] | Equity contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 39,952 | 33,687 |
Exchange Traded [Member] | Trading Derivatives [Member] | Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 255,930 | 235,622 |
Exchange Traded [Member] | Trading Derivatives [Member] | Interest rate swap contract [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 13,737 | 26,629 |
Exchange Traded [Member] | Trading Derivatives [Member] | Interest rate swap contract [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 16,446 | 16,511 |
Exchange Traded [Member] | Trading Derivatives [Member] | Interest rate swap contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 225,747 | 192,482 |
Exchange Traded [Member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 6,679 | 4,784 |
Exchange Traded [Member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 3,295 | 2,625 |
Exchange Traded [Member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 2,502 | 1,420 |
Exchange Traded [Member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 882 | 739 |
Exchange Traded [Member] | Trading Derivatives [Member] | Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 41,267 | 41,316 |
Exchange Traded [Member] | Trading Derivatives [Member] | Commodity contract [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 3,615 | 3,303 |
Exchange Traded [Member] | Trading Derivatives [Member] | Commodity contract [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 5,230 | 4,909 |
Exchange Traded [Member] | Trading Derivatives [Member] | Commodity contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 32,422 | 33,104 |
Over the Counter [member] | Trading Derivatives [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 5,966,972 | 5,286,718 |
Over the Counter [member] | Trading Derivatives [Member] | Equity contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 50,910 | 52,725 |
Over the Counter [member] | Trading Derivatives [Member] | Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 4,792,201 | 4,180,080 |
Over the Counter [member] | Trading Derivatives [Member] | Interest rate swap contract [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 42,084 | 35,023 |
Over the Counter [member] | Trading Derivatives [Member] | Interest rate swap contract [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 49,487 | 48,721 |
Over the Counter [member] | Trading Derivatives [Member] | Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 4,209,193 | 3,684,763 |
Over the Counter [member] | Trading Derivatives [Member] | Interest rate swap contract [member] | Forward rate agreements [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 491,437 | 411,573 |
Over the Counter [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 1,080,731 | 1,015,642 |
Over the Counter [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 37,397 | 21,468 |
Over the Counter [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 42,075 | 24,018 |
Over the Counter [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 47,977 | 57,226 |
Over the Counter [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Cross currency interest rate contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 499,571 | 449,187 |
Over the Counter [member] | Trading Derivatives [Member] | Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 453,711 | 463,743 |
Over the Counter [member] | Trading Derivatives [Member] | Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 35,701 | 34,781 |
Over the Counter [member] | Trading Derivatives [Member] | Commodity contract [member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 6,608 | 6,182 |
Over the Counter [member] | Trading Derivatives [Member] | Commodity contract [member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 4,371 | 4,233 |
Over the Counter [member] | Trading Derivatives [Member] | Commodity contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 24,722 | 24,366 |
Over the Counter [member] | Trading Derivatives [Member] | Credit Contracts [Member] | Purchased call options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | 5,361 | 3,047 |
Over the Counter [member] | Trading Derivatives [Member] | Credit Contracts [Member] | Written put options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Notional amount | $ 2,068 | $ 443 |
Derivative Instruments - Sche_3
Derivative Instruments - Schedule of Notional Amount and Average Rates of Derivatives and the Carrying Amount of Deposits Designated as Hedging Instruments, by Term to Maturity (Detail) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019CAD ($) | Oct. 31, 2018CAD ($) | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 6,555,375 | $ 5,800,058 | |
Carrying amount | 22,144 | [1] | 25,422 |
USD denominated deposit [member] | Foreign exchange risk [member] | Hedges of net investment in foreign operations [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Carrying amount | 6,495 | 6,596 | |
GBP denominated deposit [member] | Foreign exchange risk [member] | Hedges of net investment in foreign operations [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Carrying amount | 685 | 473 | |
Interest rate swaps [Member] | Interest rate risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 93,611 | $ 73,769 | |
Average fixed interest rate | 0.0201 | 0.0221 | |
Interest rate swaps [Member] | Interest rate risk [member] | Fair value hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 93,467 | $ 73,464 | |
Average fixed interest rate | 0.0223 | 0.0217 | |
Cross currency swaps and foreign exchange forwards [member] | CAD-USD pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 40,154 | $ 29,119 | |
Average fixed interest rate | 0.0195 | 0.0157 | |
Average exchange rate | 1.3034 | 1.2930 | |
Foreign exchange risk [member] | CAD-EUR pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 20,357 | $ 21,349 | |
Average fixed interest rate | 0.0221 | 0.0211 | |
Average exchange rate | 1.4892 | 1.4908 | |
Foreign exchange risk [member] | Other currency pairs [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 7,849 | $ 6,353 | |
Average fixed interest rate | 0.0257 | 0.0259 | |
Average exchange rate | 1.3348 | 1.3430 | |
Total Return Swaps [Member] | Equity price risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 316 | $ 381 | |
Within 1 year [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | 3,166,374 | ||
Within 1 year [member] | USD denominated deposit [member] | Foreign exchange risk [member] | Hedges of net investment in foreign operations [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Carrying amount | 6,495 | ||
Within 1 year [member] | GBP denominated deposit [member] | Foreign exchange risk [member] | Hedges of net investment in foreign operations [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Carrying amount | 685 | ||
Within 1 year [member] | Interest rate swaps [Member] | Interest rate risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 18,151 | ||
Average fixed interest rate | 0.0178 | ||
Within 1 year [member] | Interest rate swaps [Member] | Interest rate risk [member] | Fair value hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 13,300 | ||
Average fixed interest rate | 0.0226 | ||
Within 1 year [member] | Cross currency swaps and foreign exchange forwards [member] | CAD-USD pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 5,666 | ||
Average fixed interest rate | 0.0101 | ||
Average exchange rate | 1.2938 | ||
Within 1 year [member] | Foreign exchange risk [member] | CAD-EUR pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 4,993 | ||
Average fixed interest rate | 0.0198 | ||
Average exchange rate | 1.4719 | ||
Within 1 year [member] | Foreign exchange risk [member] | Other currency pairs [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 1,453 | ||
Average fixed interest rate | 0.0186 | ||
Average exchange rate | 1.6026 | ||
Within 1 year [member] | Total Return Swaps [Member] | Equity price risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 316 | ||
1 to 3 years [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | 1,670,169 | ||
1 to 3 years [member] | Interest rate swaps [Member] | Interest rate risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 27,369 | ||
Average fixed interest rate | 0.0206 | ||
1 to 3 years [member] | Interest rate swaps [Member] | Interest rate risk [member] | Fair value hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 32,633 | ||
Average fixed interest rate | 0.0218 | ||
1 to 3 years [member] | Cross currency swaps and foreign exchange forwards [member] | CAD-USD pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 13,671 | ||
Average fixed interest rate | 0.0186 | ||
Average exchange rate | 1.3127 | ||
1 to 3 years [member] | Foreign exchange risk [member] | CAD-EUR pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 8,464 | ||
Average fixed interest rate | 0.0242 | ||
Average exchange rate | 1.4994 | ||
1 to 3 years [member] | Foreign exchange risk [member] | Other currency pairs [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 2,272 | ||
Average fixed interest rate | 0.0256 | ||
Average exchange rate | 1.3199 | ||
3 to 5 years [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 930,729 | ||
3 to 5 years [member] | Interest rate swaps [Member] | Interest rate risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 32,852 | ||
Average fixed interest rate | 0.0219 | ||
3 to 5 years [member] | Interest rate swaps [Member] | Interest rate risk [member] | Fair value hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 30,708 | ||
Average fixed interest rate | 0.0222 | ||
3 to 5 years [member] | Cross currency swaps and foreign exchange forwards [member] | CAD-USD pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 15,039 | ||
Average fixed interest rate | 0.0248 | ||
Average exchange rate | 1.3121 | ||
3 to 5 years [member] | Foreign exchange risk [member] | CAD-EUR pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 6,699 | ||
Average fixed interest rate | 0.0211 | ||
Average exchange rate | 1.4894 | ||
3 to 5 years [member] | Foreign exchange risk [member] | Other currency pairs [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 3,202 | ||
Average fixed interest rate | 0.0292 | ||
Average exchange rate | 1.1895 | ||
5 to 10 years [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 622,680 | ||
5 to 10 years [member] | Interest rate swaps [Member] | Interest rate risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 15,239 | ||
Average fixed interest rate | 0.0183 | ||
5 to 10 years [member] | Interest rate swaps [Member] | Interest rate risk [member] | Fair value hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 16,809 | ||
Average fixed interest rate | 0.023 | ||
5 to 10 years [member] | Cross currency swaps and foreign exchange forwards [member] | CAD-USD pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 5,527 | ||
Average fixed interest rate | 0.0159 | ||
Average exchange rate | 1.2659 | ||
5 to 10 years [member] | Foreign exchange risk [member] | Other currency pairs [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 922 | ||
Average fixed interest rate | 0.0254 | ||
Average exchange rate | 1.4539 | ||
Over 10 years [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 165,423 | ||
Over 10 years [member] | Interest rate swaps [Member] | Interest rate risk [member] | Fair value hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 17 | ||
Average fixed interest rate | 0.0236 | ||
Over 10 years [member] | Cross currency swaps and foreign exchange forwards [member] | CAD-USD pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 251 | ||
Average fixed interest rate | 0.0302 | ||
Average exchange rate | 1.3122 | ||
Over 10 years [member] | Foreign exchange risk [member] | CAD-EUR pair [member] | Foreign exchange risk [member] | Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
Notional amount | $ 201 | ||
Average fixed interest rate | 0.0297 | ||
Average exchange rate | 1.4870 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Derivative Instruments - Cash F
Derivative Instruments - Cash Flow Hedges and Net Investment Hedges Information Related To Items Designated As Hedging Instruments, Hedged Items and Hedge Ineffectiveness (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Carrying amount of hedging instruments, Asset | $ 1,837 | $ 1,102 |
Carrying amount of hedging instruments, Liability | (9,249) | (9,432) |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness | 1,945 | (2,331) |
Hedge ineffectiveness Gains (losses) on hypothetical derivatives used to calculate hedge ineffectiveness | (1,921) | 2,333 |
Ineffectiveness recorded in non-interest revenue - other | 15 | (4) |
Cash flow hedges [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Carrying amount of hedging instruments, Asset | 1,837 | 1,102 |
Carrying amount of hedging instruments, Liability | (2,069) | (2,363) |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness | 1,962 | (2,120) |
Hedge ineffectiveness Gains (losses) on hypothetical derivatives used to calculate hedge ineffectiveness | (1,938) | 2,122 |
Ineffectiveness recorded in non-interest revenue - other | 15 | (4) |
Interest rate risk [member] | Cash flow hedges [member] | Interest rate swap contract [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Carrying amount of hedging instruments, Asset | 1,393 | 18 |
Carrying amount of hedging instruments, Liability | (121) | (1,261) |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness | 3,142 | (1,685) |
Hedge ineffectiveness Gains (losses) on hypothetical derivatives used to calculate hedge ineffectiveness | (3,118) | 1,687 |
Ineffectiveness recorded in non-interest revenue - other | 15 | (4) |
Foreign exchange risk [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Carrying amount of hedging instruments, Liability | (7,180) | (7,069) |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness | (17) | (211) |
Hedge ineffectiveness Gains (losses) on hypothetical derivatives used to calculate hedge ineffectiveness | 17 | 211 |
Foreign exchange risk [member] | Cash flow hedges [member] | Cross currency swap [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Carrying amount of hedging instruments, Asset | 420 | 1,084 |
Carrying amount of hedging instruments, Liability | (1,948) | (1,074) |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness | (1,195) | (459) |
Hedge ineffectiveness Gains (losses) on hypothetical derivatives used to calculate hedge ineffectiveness | 1,195 | 459 |
Equity price risk [member] | Cash flow hedges [member] | Total Return Swaps [Member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Carrying amount of hedging instruments, Asset | 24 | |
Carrying amount of hedging instruments, Liability | (28) | |
Gains (losses) on hedging derivatives used to calculate hedge ineffectiveness | 15 | 24 |
Hedge ineffectiveness Gains (losses) on hypothetical derivatives used to calculate hedge ineffectiveness | $ (15) | $ (24) |
Derivative Instruments - Cash_2
Derivative Instruments - Cash Flow Hedges and Net Investment Hedges Information Related To Impacts on Consolidated Statement of Other Comprehensive Income, On a Pre-Tax Basis (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
AOCI as at October 31, 2018 | $ 2,302 | ||
AOCI as at October 1, 2019 | 3,729 | [1] | $ 2,302 |
Cash flow hedges [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
AOCI as at October 31, 2018 | (1,430) | (227) | |
Gains / (losses) recognized in OCI | 1,965 | (1,660) | |
Amount reclassified to net income as the hedged item affects net income | 194 | 457 | |
AOCI as at October 1, 2019 | 729 | (1,430) | |
Active hedges | 723 | (567) | |
Discontinued hedges | 6 | (863) | |
Cash flow hedges [member] | Interest rate risk [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
AOCI as at October 31, 2018 | (2,211) | (597) | |
Gains / (losses) recognized in OCI | 3,127 | (1,681) | |
Amount reclassified to net income as the hedged item affects net income | 240 | 67 | |
AOCI as at October 1, 2019 | 1,156 | (2,211) | |
Active hedges | 1,150 | (1,348) | |
Discontinued hedges | 6 | (863) | |
Cash flow hedges [member] | Foreign exchange risk [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
AOCI as at October 31, 2018 | 751 | 298 | |
Gains / (losses) recognized in OCI | (1,177) | (3) | |
Amount reclassified to net income as the hedged item affects net income | (18) | 456 | |
AOCI as at October 1, 2019 | (444) | 751 | |
Active hedges | (444) | 751 | |
Cash flow hedges [member] | Equity price risk [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
AOCI as at October 31, 2018 | 30 | 72 | |
Gains / (losses) recognized in OCI | 15 | 24 | |
Amount reclassified to net income as the hedged item affects net income | (28) | (66) | |
AOCI as at October 1, 2019 | 17 | 30 | |
Active hedges | 17 | 30 | |
Hedges of net investment in foreign operations [member] | Foreign exchange risk [member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
AOCI as at October 31, 2018 | (1,791) | (1,580) | |
Gains / (losses) recognized in OCI | (17) | (211) | |
AOCI as at October 1, 2019 | (1,808) | (1,791) | |
Active hedges | (1,808) | (1,791) | |
Hedged item [Member] | |||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | |||
AOCI as at October 31, 2018 | (3,221) | (1,807) | |
Gains / (losses) recognized in OCI | 1,948 | (1,871) | |
Amount reclassified to net income as the hedged item affects net income | 194 | 457 | |
AOCI as at October 1, 2019 | (1,079) | (3,221) | |
Active hedges | (1,085) | (2,358) | |
Discontinued hedges | $ 6 | $ (863) | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Derivative Instruments - Cash_3
Derivative Instruments - Cash Flow Hedges and Net Investment Hedges Information Related To Impacts on Consolidated Statement of Other Comprehensive Income, On a Pre-Tax Basis (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [abstract] | ||
Cash flow hedge AOCI, tax | $ (216) | $ 356 |
Derivative Instruments - Deriva
Derivative Instruments - Derivatives Designated As Fair Value Hedging Instruments, Hedged Items and Hedge Ineffectiveness (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Gains (Losses) on hedging derivatives used to calculate hedge ineffectiveness | $ 1,945 | $ (2,331) |
Hedge ineffectiveness Gains (Losses) on hedged item used to calculate hedge ineffectiveness | (1,921) | 2,333 |
Ineffectiveness recorded in non-interest revenue - other | 15 | (4) |
Fair value hedges [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Carrying amount of hedging derivatives Asset | 799 | 701 |
Carrying amount of hedging derivatives liabilities | (1,435) | (668) |
Gains (Losses) on hedging derivatives used to calculate hedge ineffectiveness | (803) | 86 |
Hedge ineffectiveness Gains (Losses) on hedged item used to calculate hedge ineffectiveness | 803 | (82) |
Ineffectiveness recorded in non-interest revenue - other | 4 | |
Carrying amount of the hedged item (2) | 12,395 | 2,347 |
Active hedges | 640 | (441) |
Discontinued hedges | 316 | 436 |
Fair value hedges [member] | Interest rate swap contract [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Carrying amount of hedging derivatives Asset | 799 | 701 |
Carrying amount of hedging derivatives liabilities | (1,435) | (668) |
Fair value hedges [member] | Securities and loans [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Gains (Losses) on hedging derivatives used to calculate hedge ineffectiveness | (2,072) | 850 |
Hedge ineffectiveness Gains (Losses) on hedged item used to calculate hedge ineffectiveness | 2,058 | (843) |
Ineffectiveness recorded in non-interest revenue - other | (14) | 7 |
Carrying amount of the hedged item (2) | 53,672 | 36,722 |
Active hedges | 1,249 | (1,160) |
Discontinued hedges | 8 | |
Fair value hedges [member] | Deposits and subordinated debt [member] | ||
Disclosure of information about terms and conditions of hedging instruments and how they affect future cash flows [line items] | ||
Gains (Losses) on hedging derivatives used to calculate hedge ineffectiveness | 1,269 | (764) |
Hedge ineffectiveness Gains (Losses) on hedged item used to calculate hedge ineffectiveness | (1,255) | 761 |
Ineffectiveness recorded in non-interest revenue - other | 14 | (3) |
Carrying amount of the hedged item (2) | (41,277) | (34,375) |
Active hedges | (609) | 719 |
Discontinued hedges | $ 308 | $ 436 |
Derivative Instruments - Sche_4
Derivative Instruments - Schedule of Derivative-Related Credit Risk (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | $ 25,422 | |
Less: impact of master netting agreements | (15,575) | |
Derivative replacement cost | $ 9,274 | 9,847 |
Derivative credit risk equivalents before master netting agreements | 54,871 | |
Derivative credit risk equivalents master netting agreements | (29,589) | |
Derivative credit risk equivalents | 35,846 | 25,282 |
Derivative credit risk weighted assets before master netting agreements | 4,950 | |
Derivative credit risk weighted assets | 7,325 | 4,950 |
Interest rate contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 3,505 | 8,195 |
Derivative credit risk equivalents before master netting agreements | 9,699 | 10,623 |
Derivative credit risk weighted assets before master netting agreements | 2,677 | 704 |
Interest rate contract [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 3,384 | 8,177 |
Derivative credit risk equivalents before master netting agreements | 9,492 | 10,344 |
Derivative credit risk weighted assets before master netting agreements | 2,673 | 704 |
Interest rate contract [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 121 | 18 |
Derivative credit risk equivalents before master netting agreements | 207 | 279 |
Derivative credit risk weighted assets before master netting agreements | 4 | |
Interest rate contract [member] | Written put options [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 38 | |
Derivative credit risk equivalents before master netting agreements | 154 | |
Derivative credit risk weighted assets before master netting agreements | 98 | |
Interest rate contract [member] | Written put options [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 3 | |
Derivative credit risk equivalents before master netting agreements | 6 | |
Interest rate contract [member] | Futures contract [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 90 | 2 |
Derivative credit risk equivalents before master netting agreements | 161 | 29 |
Derivative credit risk weighted assets before master netting agreements | 3 | |
Interest rate contract [member] | Swap contract [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 3,233 | 7,732 |
Derivative credit risk equivalents before master netting agreements | 8,114 | 9,917 |
Derivative credit risk weighted assets before master netting agreements | 2,300 | |
Interest rate contract [member] | Forward rate agreements [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 102 | 36 |
Derivative credit risk equivalents before master netting agreements | 1,162 | 34 |
Derivative credit risk weighted assets before master netting agreements | 236 | |
Interest rate contract [member] | Purchased options [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 11 | 409 |
Derivative credit risk equivalents before master netting agreements | 62 | 393 |
Derivative credit risk weighted assets before master netting agreements | 39 | |
Interest rate contract [member] | Purchased options [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 28 | 16 |
Derivative credit risk equivalents before master netting agreements | 40 | 250 |
Derivative credit risk weighted assets before master netting agreements | 1 | |
Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 3,013 | 12,999 |
Derivative credit risk equivalents before master netting agreements | 13,805 | 31,582 |
Derivative credit risk weighted assets before master netting agreements | 2,324 | 2,544 |
Foreign exchange contracts [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 2,987 | 12,983 |
Derivative credit risk equivalents before master netting agreements | 13,759 | 31,538 |
Derivative credit risk weighted assets before master netting agreements | 2,324 | 2,544 |
Foreign exchange contracts [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 26 | 16 |
Derivative credit risk equivalents before master netting agreements | 46 | 44 |
Foreign exchange contracts [member] | Written put options [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 10 | |
Derivative credit risk equivalents before master netting agreements | 119 | |
Derivative credit risk weighted assets before master netting agreements | 29 | |
Foreign exchange contracts [member] | Written put options [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative credit risk equivalents before master netting agreements | 2 | |
Foreign exchange contracts [member] | Futures contract [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 13 | |
Derivative credit risk equivalents before master netting agreements | 20 | 8 |
Foreign exchange contracts [member] | Swap contract [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 1,184 | 8,305 |
Derivative credit risk equivalents before master netting agreements | 6,248 | 22,741 |
Derivative credit risk weighted assets before master netting agreements | 989 | |
Foreign exchange contracts [member] | Purchased options [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 40 | 225 |
Derivative credit risk equivalents before master netting agreements | 167 | 424 |
Derivative credit risk weighted assets before master netting agreements | 46 | |
Foreign exchange contracts [member] | Purchased options [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 13 | 16 |
Derivative credit risk equivalents before master netting agreements | 24 | 36 |
Foreign exchange contracts [member] | Forward contract [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 1,753 | 4,453 |
Derivative credit risk equivalents before master netting agreements | 7,225 | 8,373 |
Derivative credit risk weighted assets before master netting agreements | 1,260 | |
Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 1,199 | 2,060 |
Derivative credit risk equivalents before master netting agreements | 4,694 | 6,633 |
Derivative credit risk weighted assets before master netting agreements | 992 | 1,188 |
Commodity contract [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 427 | 1,894 |
Derivative credit risk equivalents before master netting agreements | 2,996 | 5,558 |
Derivative credit risk weighted assets before master netting agreements | 958 | 1,188 |
Commodity contract [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 772 | 166 |
Derivative credit risk equivalents before master netting agreements | 1,698 | 1,075 |
Derivative credit risk weighted assets before master netting agreements | 34 | |
Commodity contract [member] | Written put options [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 116 | |
Derivative credit risk equivalents before master netting agreements | 370 | |
Derivative credit risk weighted assets before master netting agreements | 204 | |
Commodity contract [member] | Written put options [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 1 | |
Derivative credit risk equivalents before master netting agreements | 52 | |
Derivative credit risk weighted assets before master netting agreements | 1 | |
Commodity contract [member] | Futures contract [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 393 | 17 |
Derivative credit risk equivalents before master netting agreements | 1,079 | 770 |
Derivative credit risk weighted assets before master netting agreements | 22 | |
Commodity contract [member] | Swap contract [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 213 | 1,559 |
Derivative credit risk equivalents before master netting agreements | 2,154 | 4,450 |
Derivative credit risk weighted assets before master netting agreements | 629 | |
Commodity contract [member] | Purchased options [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 98 | 335 |
Derivative credit risk equivalents before master netting agreements | 472 | 1,108 |
Derivative credit risk weighted assets before master netting agreements | 125 | |
Commodity contract [member] | Purchased options [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 378 | 149 |
Derivative credit risk equivalents before master netting agreements | 567 | 305 |
Derivative credit risk weighted assets before master netting agreements | 11 | |
Equity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 1,280 | 2,158 |
Derivative credit risk equivalents before master netting agreements | 7,152 | 5,978 |
Derivative credit risk weighted assets before master netting agreements | 1,298 | 431 |
Equity contract [member] | Over the Counter1 [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 197 | 1,585 |
Derivative credit risk equivalents before master netting agreements | 4,572 | 4,332 |
Derivative credit risk weighted assets before master netting agreements | 1,246 | |
Equity contract [member] | Exchange Traded [Member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 1,083 | 573 |
Derivative credit risk equivalents before master netting agreements | 2,580 | |
Derivative credit risk weighted assets before master netting agreements | 52 | 1,646 |
Credit Contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative replacement cost before master netting agreements | 277 | 10 |
Derivative credit risk equivalents before master netting agreements | 496 | 55 |
Derivative credit risk weighted assets before master netting agreements | $ 34 | $ 83 |
Derivative Instruments - Sche_5
Derivative Instruments - Schedule of Derivative-Related Credit Risk (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Oct. 31, 2018CAD ($) | |
Disclosure Of Derivative Financial Instruments [Abstract] | |
Derivative replacement cost impact of master netting agreements | $ 846 |
Derivative Instruments - Sche_6
Derivative Instruments - Schedule of Remaining Contractual Terms to Maturity for Notional Amounts of Derivative Contracts (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | $ 6,555,375 | $ 5,800,058 |
Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 5,235,210 | 4,562,936 |
Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 4,396,272 | 3,831,997 |
Interest rate swap contract [member] | Forward rate agreements futures and options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 838,938 | 730,939 |
Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 1,144,590 | 1,070,741 |
Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 453,711 | 472,323 |
Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 604,728 | 548,148 |
Foreign exchange contracts [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 882 | 739 |
Foreign exchange contracts [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 85,269 | 49,531 |
Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 76,968 | 76,097 |
Commodity contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 24,722 | 24,366 |
Commodity contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 32,422 | 33,104 |
Commodity contract [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 19,824 | 18,627 |
Equity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 91,178 | 86,794 |
Credit Contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 7,429 | $ 3,490 |
Within 1 year [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 3,166,374 | |
Within 1 year [member] | Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 2,375,910 | |
Within 1 year [member] | Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 1,652,793 | |
Within 1 year [member] | Interest rate swap contract [member] | Forward rate agreements futures and options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 723,117 | |
Within 1 year [member] | Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 693,266 | |
Within 1 year [member] | Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 442,750 | |
Within 1 year [member] | Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 169,935 | |
Within 1 year [member] | Foreign exchange contracts [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 862 | |
Within 1 year [member] | Foreign exchange contracts [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 79,719 | |
Within 1 year [member] | Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 27,140 | |
Within 1 year [member] | Commodity contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 6,374 | |
Within 1 year [member] | Commodity contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 12,120 | |
Within 1 year [member] | Commodity contract [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 8,646 | |
Within 1 year [member] | Equity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 69,854 | |
Within 1 year [member] | Credit Contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 204 | |
1 to 3 years [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 1,670,169 | |
1 to 3 years [member] | Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 1,410,726 | |
1 to 3 years [member] | Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 1,321,286 | |
1 to 3 years [member] | Interest rate swap contract [member] | Forward rate agreements futures and options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 89,440 | |
1 to 3 years [member] | Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 201,946 | |
1 to 3 years [member] | Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 9,590 | |
1 to 3 years [member] | Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 187,893 | |
1 to 3 years [member] | Foreign exchange contracts [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 18 | |
1 to 3 years [member] | Foreign exchange contracts [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 4,445 | |
1 to 3 years [member] | Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 43,178 | |
1 to 3 years [member] | Commodity contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 15,899 | |
1 to 3 years [member] | Commodity contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 16,782 | |
1 to 3 years [member] | Commodity contract [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 10,497 | |
1 to 3 years [member] | Equity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 13,875 | |
1 to 3 years [member] | Credit Contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 444 | |
3 to 5 years [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 930,729 | |
3 to 5 years [member] | Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 787,304 | |
3 to 5 years [member] | Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 771,362 | |
3 to 5 years [member] | Interest rate swap contract [member] | Forward rate agreements futures and options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 15,942 | |
3 to 5 years [member] | Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 127,938 | |
3 to 5 years [member] | Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 1,226 | |
3 to 5 years [member] | Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 126,074 | |
3 to 5 years [member] | Foreign exchange contracts [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 2 | |
3 to 5 years [member] | Foreign exchange contracts [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 636 | |
3 to 5 years [member] | Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 5,841 | |
3 to 5 years [member] | Commodity contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 2,132 | |
3 to 5 years [member] | Commodity contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 3,096 | |
3 to 5 years [member] | Commodity contract [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 613 | |
3 to 5 years [member] | Equity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 5,494 | |
3 to 5 years [member] | Credit Contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 4,152 | |
5 to 10 years [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 622,680 | |
5 to 10 years [member] | Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 520,042 | |
5 to 10 years [member] | Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 510,596 | |
5 to 10 years [member] | Interest rate swap contract [member] | Forward rate agreements futures and options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 9,446 | |
5 to 10 years [member] | Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 97,742 | |
5 to 10 years [member] | Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 119 | |
5 to 10 years [member] | Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 97,154 | |
5 to 10 years [member] | Foreign exchange contracts [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 469 | |
5 to 10 years [member] | Commodity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 809 | |
5 to 10 years [member] | Commodity contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 317 | |
5 to 10 years [member] | Commodity contract [member] | Futures contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 424 | |
5 to 10 years [member] | Commodity contract [member] | Option contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 68 | |
5 to 10 years [member] | Equity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 1,636 | |
5 to 10 years [member] | Credit Contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 2,451 | |
Over 10 years [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 165,423 | |
Over 10 years [member] | Interest rate swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 141,228 | |
Over 10 years [member] | Interest rate swap contract [member] | Swap contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 140,235 | |
Over 10 years [member] | Interest rate swap contract [member] | Forward rate agreements futures and options [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 993 | |
Over 10 years [member] | Foreign exchange contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 23,698 | |
Over 10 years [member] | Foreign exchange contracts [member] | Forward contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 26 | |
Over 10 years [member] | Foreign exchange contracts [member] | Cross currency swaps [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 23,672 | |
Over 10 years [member] | Equity contract [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | 319 | |
Over 10 years [member] | Credit Contracts [member] | ||
Disclosure Of Derivative Financial Instruments [Line Items] | ||
Derivative notional amount | $ 178 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Maximum Estimated Useful Lives to Amortize Assets (Detail) | 12 Months Ended |
Oct. 31, 2019 | |
Buildings [member] | Bottom of range [member] | |
Disclosure Of Property Plant And Equipment Estimated Useful Life [Line Items] | |
Estimated useful lives of assets | 10 years |
Buildings [member] | Top of range [member] | |
Disclosure Of Property Plant And Equipment Estimated Useful Life [Line Items] | |
Estimated useful lives of assets | 40 years |
Computer equipment [member] | Bottom of range [member] | |
Disclosure Of Property Plant And Equipment Estimated Useful Life [Line Items] | |
Estimated useful lives of assets | 5 years |
Computer equipment [member] | Top of range [member] | |
Disclosure Of Property Plant And Equipment Estimated Useful Life [Line Items] | |
Estimated useful lives of assets | 7 years |
Office equipment [member] | |
Disclosure Of Property Plant And Equipment Estimated Useful Life [Line Items] | |
Estimated useful lives of assets | 10 years |
Leasehold improvements [member] | |
Disclosure Of Property Plant And Equipment Estimated Useful Life [Line Items] | |
Estimated useful lives of assets | Lease term to a maximum of 10 years |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - CAD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of detailed information about property, plant and equipment [abstract] | |||
Impairment loss, property, plant and equipment | $ 0 | $ 0 | $ 0 |
Rent expense for premises and equipment | $ 600,000,000 | $ 530,000,000 | $ 501,000,000 |
Premises and Equipment - Summ_2
Premises and Equipment - Summary of Premises and Equipment (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | ||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | $ 1,986 | ||
Ending balance | 2,055 | [1] | $ 1,986 |
Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 6,448 | 6,236 | |
Additions | 620 | 433 | |
Disposals | (365) | (253) | |
Foreign exchange and other | (2) | 32 | |
Ending balance | 6,701 | 6,448 | |
Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 4,462 | 4,203 | |
Disposals | (247) | (164) | |
Depreciation | 435 | 400 | |
Foreign exchange and other | (4) | 23 | |
Ending balance | 4,646 | 4,462 | |
Land [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 145 | ||
Ending balance | 109 | 145 | |
Land [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 145 | 174 | |
Additions | 10 | 4 | |
Disposals | (45) | (32) | |
Foreign exchange and other | (1) | (1) | |
Ending balance | 109 | 145 | |
Buildings [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 611 | ||
Ending balance | 573 | 611 | |
Buildings [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,627 | 1,726 | |
Additions | 86 | 66 | |
Disposals | (179) | (163) | |
Foreign exchange and other | (2) | ||
Ending balance | 1,534 | 1,627 | |
Buildings [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,016 | 1,063 | |
Disposals | (114) | (116) | |
Depreciation | 59 | 60 | |
Foreign exchange and other | 9 | ||
Ending balance | 961 | 1,016 | |
Computer equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 567 | ||
Ending balance | 684 | 567 | |
Computer equipment [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 2,229 | 1,994 | |
Additions | 343 | 236 | |
Disposals | (102) | (11) | |
Foreign exchange and other | 10 | ||
Ending balance | 2,470 | 2,229 | |
Computer equipment [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,662 | 1,465 | |
Disposals | (101) | (9) | |
Depreciation | 227 | 201 | |
Foreign exchange and other | (2) | 5 | |
Ending balance | 1,786 | 1,662 | |
Other property, plant and equipment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 229 | ||
Ending balance | 231 | 229 | |
Other property, plant and equipment [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 933 | 913 | |
Additions | 57 | 40 | |
Disposals | (15) | (27) | |
Foreign exchange and other | (2) | 7 | |
Ending balance | 973 | 933 | |
Other property, plant and equipment [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 704 | 674 | |
Disposals | (12) | (24) | |
Depreciation | 51 | 48 | |
Foreign exchange and other | (1) | 6 | |
Ending balance | 742 | 704 | |
Leasehold improvements [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 434 | ||
Ending balance | 458 | 434 | |
Leasehold improvements [member] | Gross carrying amount [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,514 | 1,429 | |
Additions | 124 | 87 | |
Disposals | (24) | (20) | |
Foreign exchange and other | 1 | 18 | |
Ending balance | 1,615 | 1,514 | |
Leasehold improvements [member] | Accumulated depreciation and impairment [member] | |||
Disclosure of detailed information about property, plant and equipment [line items] | |||
Beginning balance | 1,080 | 1,001 | |
Disposals | (20) | (15) | |
Depreciation | 98 | 91 | |
Foreign exchange and other | (1) | 3 | |
Ending balance | $ 1,157 | $ 1,080 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Acquisitions - Additional infor
Acquisitions - Additional information (Detail) $ in Millions, $ in Millions | Sep. 01, 2018CAD ($) | Oct. 31, 2019CAD ($) | Oct. 31, 2019USD ($) | Sep. 01, 2018USD ($) |
Top of range [member] | ||||
Disclosure of business acquisitions by acquisition assets acquired and liabilities assumed [line items] | ||||
Amortization period | 15 years | |||
KGS- Alpha Capital Market [member] | ||||
Disclosure of business acquisitions by acquisition assets acquired and liabilities assumed [line items] | ||||
Acquisition of the business | $ 397 | $ 396 | $ 303 | $ 304 |
Acquired intangible assets | 102 | |||
Acquired goodwill | 6 | |||
Goodwill expected to be deductible for tax purposes. | $ 4 | |||
KGS- Alpha Capital Market [member] | Top of range [member] | ||||
Disclosure of business acquisitions by acquisition assets acquired and liabilities assumed [line items] | ||||
Amortization period | Fourteen years | |||
KGS- Alpha Capital Market [member] | Bottom of range [member] | ||||
Disclosure of business acquisitions by acquisition assets acquired and liabilities assumed [line items] | ||||
Amortization period | Three years |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Assets Acquired and Liabilities Assumed at The Date of Acquisition (Detail) - KGS- Alpha Capital Market [member] $ in Millions, $ in Millions | Oct. 31, 2019CAD ($) | Oct. 31, 2019USD ($) | Sep. 01, 2018CAD ($) | Sep. 01, 2018USD ($) |
Disclosure of business acquisitions by acquisition assets acquired and liabilities assumed [line items] | ||||
Securities - trading | $ 5,193 | |||
Securities borrowed or purchased under resale agreements | 5,669 | |||
Goodwill and intangible assets | 108 | |||
Other assets | 583 | |||
Total assets | 11,553 | |||
Securities lent or sold under repurchase agreements | 9,563 | |||
Securities sold but not yet purchased | 1,431 | |||
Other liabilities | 163 | |||
Purchase price | $ 396 | $ 303 | $ 397 | $ 304 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Detail) - CAD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of detailed information about intangible assets [line items] | |||
Intangible assets with indefinite lives | $ 168,000,000 | $ 165,000,000 | |
Software [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Write-downs of intangible assets | $ 10,000,000 | $ 13,000,000 | $ 5,000,000 |
Cash-generating units [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Cash flow projection period | 10 years | ||
Terminal growth rate | 2.50% | 3.00% | |
Write-downs of goodwill due to impairment | $ 0 | $ 0 | $ 0 |
Bottom of range [member] | Cash-generating units [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Discount rates for determine the recoverable amount | 8.00% | 8.60% | |
Top of range [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Useful lives of intangible assets other than goodwill | 15 years | ||
Top of range [member] | Cash-generating units [member] | |||
Disclosure of detailed information about intangible assets [line items] | |||
Discount rates for determine the recoverable amount | 11.00% | 11.40% |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Summary of Continuity of Goodwill By Group of CGUs (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | ||
Disclosure Of Goodwill [Line Items] | |||
Beginning balance | $ 6,373 | $ 6,244 | |
Acquisitions (disposals) during the year | 54 | ||
Foreign exchange and other | (33) | 75 | |
Ending balance | 6,340 | [1] | 6,373 |
Personal and commercial banking [member] | |||
Disclosure Of Goodwill [Line Items] | |||
Beginning balance | 3,894 | 3,816 | |
Foreign exchange and other | (1) | 78 | |
Ending balance | 3,893 | 3,894 | |
Wealth management [member] | |||
Disclosure Of Goodwill [Line Items] | |||
Beginning balance | 2,131 | 2,139 | |
Foreign exchange and other | 16 | (8) | |
Ending balance | 2,147 | 2,131 | |
BMO capital markets [member] | |||
Disclosure Of Goodwill [Line Items] | |||
Beginning balance | 348 | 289 | |
Acquisitions (disposals) during the year | 54 | ||
Foreign exchange and other | (48) | 5 | |
Ending balance | 300 | 348 | |
Traditional wealth management [member] | Wealth management [member] | |||
Disclosure Of Goodwill [Line Items] | |||
Beginning balance | 2,129 | 2,137 | |
Foreign exchange and other | 16 | (8) | |
Ending balance | 2,145 | 2,129 | |
Insurance products [member] | Wealth management [member] | |||
Disclosure Of Goodwill [Line Items] | |||
Beginning balance | 2 | 2 | |
Ending balance | 2 | 2 | |
Canada [member] | Personal and commercial banking [member] | |||
Disclosure Of Goodwill [Line Items] | |||
Beginning balance | 97 | 97 | |
Ending balance | 97 | 97 | |
United States [member] | Personal and commercial banking [member] | |||
Disclosure Of Goodwill [Line Items] | |||
Beginning balance | 3,797 | 3,719 | |
Foreign exchange and other | (1) | 78 | |
Ending balance | $ 3,796 | $ 3,797 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Summary of Intangible Assets (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | $ 2,272 | |||
Amortization | 554 | [1] | $ 503 | $ 485 |
Ending balance | 2,424 | [1] | 2,272 | |
Customer-related intangible assets [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 213 | |||
Ending balance | 209 | 213 | ||
Core deposit [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 121 | |||
Ending balance | 73 | 121 | ||
Software amortizing [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 1,157 | |||
Ending balance | 1,475 | 1,157 | ||
software under development [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 496 | |||
Ending balance | 402 | 496 | ||
Other intangible assets [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 285 | |||
Ending balance | 265 | 285 | ||
Gross carrying amount [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 6,837 | 6,242 | ||
Additions (disposals) | 657 | 563 | ||
Foreign exchange and other | 93 | 32 | ||
Ending balance | 7,587 | 6,837 | 6,242 | |
Gross carrying amount [member] | Customer-related intangible assets [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 688 | 654 | ||
Additions (disposals) | 35 | |||
Foreign exchange and other | 72 | (1) | ||
Ending balance | 760 | 688 | 654 | |
Gross carrying amount [member] | Core deposit [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 951 | 931 | ||
Foreign exchange and other | 20 | |||
Ending balance | 951 | 951 | 931 | |
Gross carrying amount [member] | Branch distribution networks [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 191 | 187 | ||
Foreign exchange and other | 4 | |||
Ending balance | 191 | 191 | 187 | |
Gross carrying amount [member] | Software amortizing [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 4,127 | 3,696 | ||
Additions (disposals) | 718 | 422 | ||
Foreign exchange and other | (9) | 9 | ||
Ending balance | 4,836 | 4,127 | 3,696 | |
Gross carrying amount [member] | software under development [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 496 | 398 | ||
Additions (disposals) | (91) | 94 | ||
Foreign exchange and other | (3) | 4 | ||
Ending balance | 402 | 496 | 398 | |
Gross carrying amount [member] | Other intangible assets [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 384 | 376 | ||
Additions (disposals) | 30 | 12 | ||
Foreign exchange and other | 33 | (4) | ||
Ending balance | 447 | 384 | 376 | |
Accumulated depreciation and amortisation [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 4,565 | 4,083 | ||
Amortization | 554 | 503 | ||
Additions (disposals) | (11) | (20) | ||
Foreign exchange and other | 55 | (1) | ||
Ending balance | 5,163 | 4,565 | 4,083 | |
Accumulated depreciation and amortisation [member] | Customer-related intangible assets [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 475 | 431 | ||
Amortization | 60 | 46 | ||
Foreign exchange and other | 16 | (2) | ||
Ending balance | 551 | 475 | 431 | |
Accumulated depreciation and amortisation [member] | Core deposit [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 830 | 762 | ||
Amortization | 48 | 51 | ||
Foreign exchange and other | 17 | |||
Ending balance | 878 | 830 | 762 | |
Accumulated depreciation and amortisation [member] | Branch distribution networks [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 191 | 187 | ||
Foreign exchange and other | 4 | |||
Ending balance | 191 | 191 | 187 | |
Accumulated depreciation and amortisation [member] | Software amortizing [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 2,970 | 2,618 | ||
Amortization | 395 | 387 | ||
Additions (disposals) | (11) | (20) | ||
Foreign exchange and other | 7 | (15) | ||
Ending balance | 3,361 | 2,970 | 2,618 | |
Accumulated depreciation and amortisation [member] | Other intangible assets [member] | ||||
Disclosure of detailed information about intangible assets [line items] | ||||
Beginning balance | 99 | 85 | ||
Amortization | 51 | 19 | ||
Foreign exchange and other | 32 | (5) | ||
Ending balance | $ 182 | $ 99 | $ 85 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Summary of Intangible Assets (Parenthetical) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Statement [Line Items] | |||
Intangible assets other than goodwill | $ 2,424 | [1] | $ 2,272 |
Software amortizing [member] | |||
Statement [Line Items] | |||
Intangible assets other than goodwill | 1,475 | 1,157 | |
Internally generated [member] | Software amortizing [member] | |||
Statement [Line Items] | |||
Intangible assets other than goodwill | $ 679 | $ 416 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Other Assets - Components of Ot
Other Assets - Components of Other within Other Assets (Details) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of Other Assets [line items] | ||||
Accounts receivable, prepaid expenses and other items | $ 2,905 | $ 2,781 | ||
Accrued interest receivable | 1,755 | 1,461 | ||
Bank owned life insurance policies | 4,242 | 4,154 | ||
Leased vehicles | 870 | 937 | ||
Cash collateral | 3,517 | 2,019 | ||
Due from clients, dealers and brokers | 177 | 236 | ||
Insurance-related assets | 1,163 | 822 | ||
Other employee future benefits assets | 46 | |||
Precious metals | 1,719 | 1,603 | ||
Total | 16,580 | [1] | 14,677 | |
Pension Plans [member] | ||||
Disclosure of Other Assets [line items] | ||||
Pension asset | (143) | 408 | $ 144 | |
Other assets [member] | Pension Plans [member] | ||||
Disclosure of Other Assets [line items] | ||||
Pension asset | $ 186 | $ 664 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Deposits - Summary of Deposits
Deposits - Summary of Deposits (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure Of Deposits [Line Items] | |||
Interest bearing | $ 34,440 | $ 30,192 | |
Non-interest bearing | 58,467 | 56,729 | |
Payables after notice | 180,343 | 157,785 | |
Payable on a fixed date | 294,893 | 276,222 | |
Total | 568,143 | [1] | 520,928 |
Canada [member] | |||
Disclosure Of Deposits [Line Items] | |||
Interest bearing | 27,338 | 21,735 | |
Non-interest bearing | 49,911 | 47,231 | |
Payables after notice | 90,630 | 82,091 | |
Payable on a fixed date | 181,835 | 160,069 | |
Total | 349,714 | 311,126 | |
United States [member] | |||
Disclosure Of Deposits [Line Items] | |||
Interest bearing | 6,043 | 7,395 | |
Non-interest bearing | 8,531 | 9,477 | |
Payables after notice | 88,604 | 74,476 | |
Payable on a fixed date | 86,368 | 86,805 | |
Total | 189,546 | 178,153 | |
Other countries [member] | |||
Disclosure Of Deposits [Line Items] | |||
Interest bearing | 1,059 | 1,062 | |
Non-interest bearing | 25 | 21 | |
Payables after notice | 1,109 | 1,218 | |
Payable on a fixed date | 26,690 | 29,348 | |
Total | 28,883 | 31,649 | |
Banks [Member] | |||
Disclosure Of Deposits [Line Items] | |||
Interest bearing | 1,996 | 1,450 | |
Non-interest bearing | 1,530 | 1,400 | |
Payables after notice | 1,017 | 526 | |
Payable on a fixed date | 19,273 | 24,531 | |
Total | 23,816 | 27,907 | |
Business and governments [member] | |||
Disclosure Of Deposits [Line Items] | |||
Interest bearing | 29,083 | 25,266 | |
Non-interest bearing | 33,853 | 33,984 | |
Payables after notice | 85,022 | 67,026 | |
Payable on a fixed date | 195,199 | 185,901 | |
Total | 343,157 | 312,177 | |
Individuals [Member] | |||
Disclosure Of Deposits [Line Items] | |||
Interest bearing | 3,361 | 3,476 | |
Non-interest bearing | 23,084 | 21,345 | |
Payables after notice | 94,304 | 90,233 | |
Payable on a fixed date | 80,421 | 65,790 | |
Total | $ 201,170 | $ 180,844 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Deposits - Summary of Deposit_2
Deposits - Summary of Deposits (Parenthetical) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure Of Deposits [Line Items] | ||
Deposits booked payable on a fixed date | $ 294,893 | $ 276,222 |
Total deposits payable on a fixed date | 25,438 | 29,673 |
U.S. dollars [member] | ||
Disclosure Of Deposits [Line Items] | ||
Deposits liabilities | 279,860 | 259,747 |
Non USD Non CAD [member] | ||
Disclosure Of Deposits [Line Items] | ||
Deposits liabilities | 36,680 | 37,427 |
Bank Recapitalization (Bail-In) Regime [member] | ||
Disclosure Of Deposits [Line Items] | ||
Deposits booked payable on a fixed date | $ 16,248 | $ 37 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of deposits from banks [abstract] | ||
Federal funds purchased | $ 59 | $ 55 |
Commercial paper | 9,495 | 9,121 |
Covered bonds | 25,465 | 25,045 |
Fair value of notes on contractual maturity | 15,829 | 14,186 |
Notional amount of notes on contractual maturity | 15,431 | 15,088 |
Increase (decrease) in non-interest revenue and trading revenue | (1,414) | 1,038 |
Increase (decrease) other comprehensive income before tax | 114 | (28) |
Unrealized loss due to change in credit spread | $ (141) | $ (255) |
Deposits - Schedule for our Dep
Deposits - Schedule for our Deposits Payable on a Fixed Date (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Total | $ 294,893 | $ 276,222 |
Within 1 year [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Total | 183,952 | 162,666 |
1-2 years [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Total | 34,401 | 34,154 |
2 to 3 years [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Total | 23,855 | 26,107 |
3 to 4 years [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Total | 21,735 | 16,708 |
4 to 5 years [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Total | 16,959 | 22,196 |
Over 5 years [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Total | $ 13,991 | $ 14,391 |
Deposits - Schedule for our D_2
Deposits - Schedule for our Deposits Payable on a Fixed Date (Parenthetical) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | $ 294,893 | $ 276,222 |
Unencumbered liquid assets | 249,650 | 242,612 |
Canada [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 181,835 | 160,069 |
United States [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 86,368 | 86,805 |
Other countries [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 26,690 | 29,348 |
More Than One Hundred Thousand [Member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 273,657 | 246,685 |
More Than One Hundred Thousand [Member] | Canada [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 167,294 | 145,574 |
More Than One Hundred Thousand [Member] | Canada [member] | 0 to 3 months [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 73,027 | 55,190 |
More Than One Hundred Thousand [Member] | Canada [member] | 3-6 month [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 4,312 | 3,836 |
More Than One Hundred Thousand [Member] | Canada [member] | Later than six months and not later than one year [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 22,814 | 12,909 |
More Than One Hundred Thousand [Member] | Canada [member] | After 12 months [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 67,141 | 73,639 |
More Than One Hundred Thousand [Member] | United States [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | 79,682 | 71,770 |
More Than One Hundred Thousand [Member] | Other countries [member] | ||
Disclosure of deposits payable to customers on a fixed date [line items] | ||
Deposits booked payable on a fixed date | $ 26,681 | $ 29,341 |
Other Liabilities - Summary of
Other Liabilities - Summary of Components of Other within Other Liabilities (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of Other Liability [Line Items] | ||||
Accounts payable, accrued expenses and other items | $ 8,613 | $ 8,152 | ||
Accrued interest payable | 1,693 | 1,385 | ||
Cash collateral | 5,128 | 5,466 | ||
Insurance-related liabilities | 11,581 | 9,585 | $ 8,959 | |
Liabilities of subsidiaries, other than deposits | 7,934 | 9,283 | ||
Payable to brokers, dealers and clients | 2,204 | 1,898 | ||
Total | 38,607 | [1] | 36,985 | |
Other employee future benefit plans [member] | ||||
Disclosure of Other Liability [Line Items] | ||||
Other employee future benefits liability | 1,079 | 960 | 1,303 | |
Pension Plans [member] | ||||
Disclosure of Other Liability [Line Items] | ||||
Other employee future benefits liability | 143 | (408) | $ (144) | |
Other liabilities [member] | Other employee future benefit plans [member] | ||||
Disclosure of Other Liability [Line Items] | ||||
Other employee future benefits liability | 1,125 | 960 | ||
Other liabilities [member] | Pension Plans [member] | ||||
Disclosure of Other Liability [Line Items] | ||||
Other employee future benefits liability | $ 329 | $ 256 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Other Liabilities - Additional
Other Liabilities - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure Of Investment Contracts Liabilities Measured At Fair Value [Abstract] | ||
Fair value of investment in contract liabilities | $ 1,043 | $ 800 |
Change in fair value of investment contract liabilities | 119 | (28) |
Gain (loss) recorded in other comprehensive income due to changes in credit spread | (12) | (2) |
Unrealized gain (loss) in other comprehensive income due to change in credit spread | $ (33) | $ (21) |
Other Liabilities - Reconciliat
Other Liabilities - Reconciliation of Change in Insurance-Related Liabilities (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of types of insurance contracts [abstract] | ||
Insurance-related liabilities, beginning of year | $ 9,585 | $ 8,959 |
Increase (decrease) in life insurance policy benefit liabilities from: | ||
New business | 706 | 742 |
In-force policies | 906 | (400) |
Changes in actuarial assumptions and methodology | 23 | 3 |
Net increase in life insurance policy benefit liabilities | 1,635 | 345 |
Change in other insurance-related liabilities | 361 | 281 |
Insurance-related liabilities, end of year | $ 11,581 | $ 9,585 |
Other Liabilities - Summary o_2
Other Liabilities - Summary of Reinsurance Premiums Ceded (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Net premiums | $ 1,786 | $ 1,828 | $ 1,593 |
Direct premium income [member] | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Net premiums | 1,944 | 1,976 | 1,750 |
Ceded premiums [member] | |||
Disclosure of net, gross and reinsurer's share for amounts arising from insurance contracts [line items] | |||
Net premiums | $ (158) | $ (148) | $ (157) |
Subordinated Debt - Summary of
Subordinated Debt - Summary of Maturities of Subordinated Debt and Repayment (Detail) $ in Millions, $ in Millions | 12 Months Ended | ||||||
Oct. 31, 2019CAD ($) | Oct. 31, 2019USD ($) | Sep. 16, 2019CAD ($) | Oct. 31, 2018CAD ($) | Oct. 31, 2018USD ($) | Dec. 12, 2017 | ||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 6,555,375 | $ 5,800,058 | |||||
Total | 6,995 | [1] | 6,782 | ||||
Subordinated debt [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Total | 6,995 | 6,782 | |||||
Subordinated debt [member] | Debentures series 20 [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 150 | 150 | |||||
Maturity date | December 2025 to 2040 | ||||||
Interest rate (%) | 8.25% | 8.25% | |||||
Redeemable at our option beginning in | Not redeemable | ||||||
Total | $ 145 | 143 | |||||
Subordinated debt [member] | Series H Medium Term Notes First Tranche [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 1,000 | 1,000 | |||||
Maturity date | September 2024 | ||||||
Interest rate (%) | 3.12% | 3.12% | |||||
Redeemable at our option beginning in | September 2019 | ||||||
Total | 1,003 | ||||||
Subordinated debt [member] | Series H Medium Term Notes Second Tranche [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 1,000 | 1,000 | |||||
Maturity date | December 2025 | ||||||
Interest rate (%) | 3.34% | 3.34% | |||||
Redeemable at our option beginning in | December 2020 | ||||||
Total | $ 983 | 916 | |||||
Subordinated debt [member] | Series I Medium Term Notes First Tranche [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 1,250 | 1,250 | |||||
Maturity date | June 2026 | ||||||
Interest rate (%) | 3.32% | 3.32% | |||||
Redeemable at our option beginning in | June 2021 | ||||||
Total | $ 1,230 | 1,222 | |||||
Subordinated debt [member] | Series I Medium Term Notes Second Tranche [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 850 | 850 | |||||
Maturity date | June 2027 | ||||||
Interest rate (%) | 2.57% | 2.57% | |||||
Redeemable at our option beginning in | June 2022 | ||||||
Total | $ 820 | 813 | |||||
Subordinated debt [member] | Three point eight zero three percentage Subordinated Notes due 2032 [Member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 1,250 | $ 1,250 | |||||
Maturity date | December 2032 | ||||||
Interest rate (%) | 3.80% | 3.80% | 3.803% | ||||
Redeemable at our option beginning in | December 2027 | ||||||
Total | $ 1,646 | 1,573 | |||||
Subordinated debt [member] | Four point three three eight percentage Subordinated Notes due 2028[Member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 850 | $ 850 | |||||
Maturity date | October 2028 | ||||||
Interest rate (%) | 4.34% | 4.34% | |||||
Redeemable at our option beginning in | October 2023 | ||||||
Total | $ 1,180 | 1,112 | |||||
Subordinated debt [member] | Series J Medium Term Notes First Tranche [Member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 1,000 | $ 1,000 | $ 1,000 | ||||
Maturity date | September 2029 | ||||||
Interest rate (%) | 2.88% | 2.88% | |||||
Redeemable at our option beginning in | September 2024 | ||||||
Total | $ 991 | ||||||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Subordinated Debt - Summary o_2
Subordinated Debt - Summary of Maturities of Subordinated Debt and Repayment (Parenthetical) (Detail) $ / shares in Units, $ in Millions, $ in Millions | 1 Months Ended | 12 Months Ended | |||||
Sep. 19, 2019CAD ($) | Oct. 31, 2019CAD ($) | Oct. 31, 2018CAD ($)$ / shares | Oct. 31, 2019USD ($) | Sep. 16, 2019CAD ($) | Oct. 31, 2018USD ($) | Dec. 12, 2017 | |
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 6,555,375 | $ 5,800,058 | |||||
Subordinated debt [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Increase (Decrease) in Subordinated Long Term Debt | $ (233) | $ 20 | |||||
Bottom of range [member] | Subordinated debt [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Common stock conversion price | $ / shares | $ 5 | ||||||
Series H Medium Term Notes First Tranche [member] | Subordinated debt [member] | Redeemed Subordinate Debt [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 1,000 | ||||||
Percentage of notes redeemed | 100.00% | ||||||
Three point eight zero three percentage Subordinated Notes due 2032 [Member] | Subordinated debt [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 1,250 | $ 1,250 | |||||
Interest rate | 3.80% | 3.80% | 3.803% | ||||
Four point three three eight percentage Subordinated Notes due 2028[Member] | Subordinated debt [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 850 | $ 850 | |||||
Interest rate | 4.34% | 4.34% | |||||
Series J Medium Term Notes First Tranche [Member] | Subordinated debt [member] | |||||||
Subordinated Liabilities [Line Items] | |||||||
Face value | $ 1,000 | $ 1,000 | $ 1,000 | ||||
Interest rate | 2.88% | 2.88% |
Equity - Summary of Classes of
Equity - Summary of Classes of Preferred and Common Shares Outstanding (Detail) - CAD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year | $ 45,721 | $ 44,345 | |||
Balance at end of year | $ 51,076 | [1] | $ 45,721 | $ 44,345 | |
Class B Series 16 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at end of year (shares) | 0 | ||||
Balance at end of year | $ 0 | ||||
Dividend declared per share | $ 0 | $ 0.64 | |||
Class B Series 17 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 5,732,609 | ||||
Balance at end of year (shares) | 0 | 5,732,609 | |||
Balance at end of year | $ 0 | ||||
Dividend declared per share | $ 0 | $ 0.52 | |||
Class B Series 25 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 9,425,607 | ||||
Balance at end of year (shares) | 9,425,607 | 9,425,607 | |||
Balance at beginning of year | $ 236 | ||||
Balance at end of year | $ 236 | $ 236 | |||
Dividend declared per share | $ 0.45 | $ 0.45 | |||
Class B Series 26 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 2,174,393 | ||||
Balance at end of year (shares) | 2,174,393 | 2,174,393 | |||
Balance at beginning of year | $ 54 | ||||
Balance at end of year | $ 54 | $ 54 | |||
Dividend declared per share | $ 0.70 | $ 0.59 | |||
Class B Series 27 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 20,000,000 | ||||
Balance at end of year (shares) | 20,000,000 | 20,000,000 | |||
Balance at beginning of year | $ 500 | ||||
Balance at end of year | $ 500 | $ 500 | |||
Dividend declared per share | $ 0.98 | $ 1 | |||
Class B Series 29 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 16,000,000 | ||||
Balance at end of year (shares) | 16,000,000 | 16,000,000 | |||
Balance at beginning of year | $ 400 | ||||
Balance at end of year | $ 400 | $ 400 | |||
Dividend declared per share | $ 0.96 | $ 0.98 | |||
Class B Series 31 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 12,000,000 | ||||
Balance at end of year (shares) | 12,000,000 | 12,000,000 | |||
Balance at beginning of year | $ 300 | ||||
Balance at end of year | $ 300 | $ 300 | |||
Dividend declared per share | $ 0.95 | $ 0.95 | |||
Class B Series 33 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 8,000,000 | ||||
Balance at end of year (shares) | 8,000,000 | 8,000,000 | |||
Balance at beginning of year | $ 200 | ||||
Balance at end of year | $ 200 | $ 200 | |||
Dividend declared per share | $ 0.95 | $ 0.95 | |||
Class B Series 35 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 6,000,000 | ||||
Balance at end of year (shares) | 6,000,000 | 6,000,000 | |||
Balance at beginning of year | $ 150 | ||||
Balance at end of year | $ 150 | $ 150 | |||
Dividend declared per share | $ 1.25 | $ 1.25 | |||
Class B Series 36 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 600,000 | ||||
Balance at end of year (shares) | 600,000 | 600,000 | |||
Balance at beginning of year | $ 600 | ||||
Balance at end of year | $ 600 | $ 600 | |||
Dividend declared per share | $ 58.50 | $ 58.50 | |||
Class B Series 38 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 24,000,000 | ||||
Balance at end of year (shares) | 24,000,000 | 24,000,000 | |||
Balance at beginning of year | $ 600 | ||||
Balance at end of year | $ 600 | $ 600 | |||
Dividend declared per share | $ 1.21 | $ 1.21 | |||
Class B Series 40 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 20,000,000 | ||||
Balance at end of year (shares) | 20,000,000 | 20,000,000 | |||
Balance at beginning of year | $ 500 | ||||
Balance at end of year | $ 500 | $ 500 | |||
Dividend declared per share | $ 1.13 | $ 1.13 | |||
Class B Series 42 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 16,000,000 | ||||
Balance at end of year (shares) | 16,000,000 | 16,000,000 | |||
Balance at beginning of year | $ 400 | ||||
Balance at end of year | $ 400 | $ 400 | |||
Dividend declared per share | $ 1.10 | $ 1.10 | |||
Class B Series 44 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 16,000,000 | ||||
Balance at end of year (shares) | 16,000,000 | 16,000,000 | |||
Balance at beginning of year | $ 400 | ||||
Balance at end of year | $ 400 | $ 400 | |||
Dividend declared per share | $ 1.44 | ||||
Class B Series 46 [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at end of year (shares) | 14,000,000 | ||||
Balance at end of year | $ 350 | ||||
Dividend declared per share | $ 0.77 | ||||
Preferred shares [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year | $ 4,340 | [1] | 4,240 | 3,840 | |
Balance at end of year | 5,348 | [1] | $ 4,340 | [1] | $ 4,240 |
Other Equity Instrument [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at end of year | $ 658 | ||||
Common shares [member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year (shares) | 639,329,625 | 647,816,318 | |||
Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan | 0 | 0 | |||
Issued/cancelled under the Stock Option Plan and other stock-based compensation plans (Note 20) | 902,651 | 1,513,307 | |||
Repurchased for cancellation | (1,000,000) | (10,000,000) | |||
Balance at end of year (shares) | 639,232,276 | 639,329,625 | 647,816,318 | ||
Balance at beginning of year | $ 12,929 | [1] | $ 13,032 | $ 12,539 | |
Issued under the Shareholder Dividend Reinvestment and Share Purchase Plan | 0 | ||||
Issued/cancelled under the Stock Option Plan and other stock-based compensation plans | 62 | 99 | |||
Repurchased for cancellation | (20) | [1] | (202) | (101) | |
Balance at end of year | $ 12,971 | [1] | $ 12,929 | [1] | $ 13,032 |
Dividend declared per share | $ 4.06 | [1] | $ 3.78 | $ 3.56 | |
Preferred Shares and Other Equity Instruments [Member] | |||||
Disclosure of classes of share capital [line items] | |||||
Balance at beginning of year | $ 4,340 | ||||
Balance at end of year | $ 5,348 | $ 4,340 | |||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Equity - Summary of Classes o_2
Equity - Summary of Classes of Share Capital (Parenthetical) (Detail) $ / shares in Units, $ in Millions, $ in Millions | Jul. 30, 2019USD ($) | Apr. 17, 2019CAD ($)$ / sharesshares | Sep. 17, 2018CAD ($)$ / sharesshares | Oct. 31, 2019CAD ($)$ / shares | Oct. 31, 2018CAD ($)$ / sharesshares | Oct. 31, 2017CAD ($) | Oct. 31, 2019USD ($)shares | Oct. 31, 2019$ / shares | Aug. 25, 2018$ / sharesshares | |
Disclosure of classes of share capital [line items] | ||||||||||
Gross proceeds | $ | $ 1,008 | [1] | $ 400 | $ 900 | ||||||
Additional Tier 1 Capital Notes (NVCC) [member] | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Note Issued Face Value | $ | $ 500 | $ 500 | ||||||||
Interest Rate | 4.80% | 4.80% | ||||||||
Class B Series 16 [member] | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Number of shares redeemed | shares | 6,267,391 | |||||||||
Redemption price per share | $ 25 | |||||||||
Dividends declared per share | $ 0.64 | |||||||||
Number of shares | shares | 6,267,391 | |||||||||
Class B Series 17 [member] | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Number of shares redeemed | shares | 5,732,609 | |||||||||
Redemption price per share | $ 25 | |||||||||
Dividends declared per share | $ 0 | $ 0.52 | ||||||||
Number of shares | shares | 5,732,609 | 0 | ||||||||
Class B Series 44 [member] | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Redemption price per share | $ 25 | |||||||||
Dividends declared per share | 1.44 | |||||||||
Number of shares | shares | 16,000,000 | 16,000,000 | ||||||||
Number of shares issued | shares | 16,000,000 | |||||||||
Preferred shares issued price per share | $ 25 | |||||||||
Gross proceeds | $ | $ 400 | |||||||||
Dividend Rate Reset Term | 5 years | |||||||||
Class B Series 46 [member] | ||||||||||
Disclosure of classes of share capital [line items] | ||||||||||
Redemption price per share | $ 25 | |||||||||
Dividends declared per share | $ 0.77 | |||||||||
Number of shares | shares | 14,000,000 | |||||||||
Number of shares issued | shares | 14,000,000 | |||||||||
Preferred shares issued price per share | $ 25 | |||||||||
Gross proceeds | $ | $ 350 | |||||||||
Dividend Rate Reset Term | 5 years | |||||||||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Equity - Summary of Prefered Sh
Equity - Summary of Prefered Share Rights and Privileges (Detail) - $ / shares | Apr. 17, 2019 | Oct. 31, 2019 | Oct. 31, 2018 |
Class B Series 25 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | $ 25 | ||
Quarterly non-cumulative dividend | $ 0.45 | $ 0.45 | |
Reset premium | 1.15% | ||
Date redeemable / convertible | August 25, 2021 | ||
Convertible to | Class B – Series 26 | ||
Class B Series 25 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.112813 | ||
Class B Series 26 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 0.70 | 0.59 | |
Reset premium | 1.15% | ||
Date redeemable / convertible | August 25, 2021 | ||
Convertible to | Class B – Series 25 | ||
Class B Series 26 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | Floating | ||
Class B Series 27 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | $ 25 | ||
Quarterly non-cumulative dividend | $ 0.98 | 1 | |
Reset premium | 2.33% | ||
Date redeemable / convertible | May 25, 2024 | ||
Convertible to | Class B – Series 28 | ||
Class B Series 27 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.24075 | ||
Class B Series 29 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 0.96 | 0.98 | |
Reset premium | 2.24% | ||
Date redeemable / convertible | August 25, 2024 | ||
Convertible to | Class B – Series 30 | ||
Class B Series 29 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.2265 | ||
Class B Series 31 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 0.95 | 0.95 | |
Reset premium | 2.22% | ||
Date redeemable / convertible | November 25, 2019 | ||
Convertible to | Class B – Series 32 | ||
Class B Series 31 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.2375 | ||
Class B Series 33 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 0.95 | 0.95 | |
Reset premium | 2.71% | ||
Date redeemable / convertible | August 25, 2020 | ||
Convertible to | Class B – Series 34 | ||
Class B Series 33 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.2375 | ||
Class B Series 35 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 1.25 | 1.25 | |
Date redeemable / convertible | August 25, 2020 | ||
Convertible to | Not convertible | ||
Reset premium | Does not reset | ||
Class B Series 35 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.3125 | ||
Class B Series 36 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 1,000 | ||
Quarterly non-cumulative dividend | $ 58.50 | 58.50 | |
Reset premium | 4.97% | ||
Date redeemable / convertible | November 25, 2020 | ||
Convertible to | Class B – Series 37 | ||
Class B Series 36 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 14.6250 | ||
Class B Series 38 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 1.21 | 1.21 | |
Reset premium | 4.06% | ||
Date redeemable / convertible | February 25, 2022 | ||
Convertible to | Class B – Series 39 | ||
Class B Series 38 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.303125 | ||
Class B Series 40 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | $ 25 | ||
Reset premium | 3.33% | ||
Date redeemable / convertible | May 25, 2022 | ||
Convertible to | Class B – Series 41 | ||
Class B Series 40 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.28125 | ||
Class B Series 42 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 1.10 | $ 1.10 | |
Reset premium | 3.17% | ||
Date redeemable / convertible | August 25, 2022 | ||
Convertible to | Class B – Series 43 | ||
Class B Series 42 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.2750 | ||
Class B Series 44 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 1.44 | ||
Reset premium | 2.68% | ||
Date redeemable / convertible | November 25, 2023 | ||
Convertible to | Class B – Series 45 | ||
Class B Series 44 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.303125 | ||
Class B Series 46 [member] | |||
Disclosure of classes of share capital [line items] | |||
Redemption amount | 25 | ||
Quarterly non-cumulative dividend | $ 0.77 | ||
Reset premium | 3.51% | 3.51% | |
Date redeemable / convertible | May 25, 2024 | ||
Convertible to | Class B - Series 47 | Class B – Series 47 | |
Class B Series 46 [member] | Quarterly dividend [Member] | |||
Disclosure of classes of share capital [line items] | |||
Quarterly non-cumulative dividend | $ 0.31875 |
Equity - Schedule of the Equity
Equity - Schedule of the Equity Instrument (Detail) $ in Millions, $ in Millions | Jul. 30, 2019USD ($) | Oct. 31, 2019CAD ($) | Oct. 31, 2019USD ($) | Jul. 31, 2019 |
Disclosure of classes of share capital [line items] | ||||
Redemption Price | 100.00% | |||
Total | $ 658 | |||
Additional Tier 1 Capital Notes (NVCC) [member] | ||||
Disclosure of classes of share capital [line items] | ||||
Face value | $ 500 | $ 500 | ||
Interest rate (%) | 4.80% | 4.80% | ||
Redeemable at our option | Aug. 31, 2024 | |||
Total | $ 658 |
Equity - Additional Information
Equity - Additional Information (Detail) $ / shares in Units, $ in Millions | Sep. 27, 2019shares | Jul. 30, 2019USD ($) | Jun. 27, 2019shares | Apr. 17, 2019CAD ($)$ / sharesshares | Mar. 29, 2019shares | Dec. 31, 2018CAD ($) | Oct. 31, 2019CAD ($)$ / sharesshares | Oct. 31, 2018CAD ($)shares | Oct. 31, 2017CAD ($) | Oct. 31, 2019USD ($)shares | |
Disclosure of classes of share capital [line items] | |||||||||||
Floor price | $ / shares | $ 5 | ||||||||||
Description of conversion of preferred shares to common shares | Each preferred share is convertible into common shares pursuant to an automatic conversion formula and a conversion price based on the greater of: (i) a floor price of $5.00 and (ii) the current market price of our common shares based on the volume weighted average trading price of our common shares on the TSX. | ||||||||||
Gross proceeds | $ | $ 1,008,000,000 | [1] | $ 400,000,000 | $ 900,000,000 | |||||||
Stock Option Plan [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Common shares reserved for potential issuance | 6,095,201 | 6,108,307 | |||||||||
Additional Tier 1 Capital Notes (NVCC) [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Note Issued Face Value | $ | $ 500 | $ 500 | |||||||||
Interest Rate | 4.80% | 4.80% | |||||||||
Dividend reinvestment and share purchase plan [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Common shares reserved for potential issuance | 39,947,147 | 39,947,147 | |||||||||
BMO Capital Trust II [Member] | Tier 1 Notes- Series A [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Issued and outstanding redemption amount | $ | $ 1,000 | ||||||||||
Redemption of capital trust securities | $ | $ 450,000,000 | ||||||||||
Common shares [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares issued | 0 | 0 | |||||||||
Shares repurchased for cancellation | 1,000,000 | 10,000,000 | |||||||||
Common shares [member] | Dividend reinvestment and share purchase plan [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Number of shares purchased | 2,198,109 | 1,995,353 | |||||||||
Class B Series 46 [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Description of conversion of preferred share | Class B - Series 47 | Class B – Series 47 | |||||||||
Number of shares issued | 14,000,000 | ||||||||||
Dividend rate reset term | 5 years | ||||||||||
Earliest redemption date | May 25, 2024 | ||||||||||
Dividend rate, percent | 5.10% | ||||||||||
Preferred shares issued price per share | $ / shares | $ 25 | ||||||||||
Gross proceeds | $ | $ 350,000,000 | ||||||||||
Dividend rate reset premium | 3.51% | 3.51% | |||||||||
Normal course issuer bid [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Shares repurchased for cancellation | 1,000,000 | 10,000,000 | |||||||||
Normal course issuer bid [member] | Top of range [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Purchase of common shares for cancellation | 15,000,000 | ||||||||||
Class B Series 29 [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Share conversion basis | One-for-one basis | ||||||||||
Description of conversion of preferred share | Class B - Series 30 | ||||||||||
Number of shares tendered | 223,098 | ||||||||||
Number of shares required for conversion | 1,000,000 | ||||||||||
Number of shares issued | 0 | ||||||||||
Dividend rate reset term | 5 years | ||||||||||
Earliest redemption date | Aug. 24, 2024 | ||||||||||
Dividend rate, percent | 3.624% | ||||||||||
Class B Series 27 [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Share conversion basis | one-for-one basis | ||||||||||
Description of conversion of preferred share | Class B - Series 28 | ||||||||||
Number of shares tendered | 412,564 | ||||||||||
Number of shares required for conversion | 1,000,000 | ||||||||||
Number of shares issued | 0 | ||||||||||
Dividend rate reset term | 5 years | ||||||||||
Earliest redemption date | May 24, 2024 | ||||||||||
Dividend rate, percent | 3.852% | ||||||||||
Class B Series 31 [member] | |||||||||||
Disclosure of classes of share capital [line items] | |||||||||||
Share conversion basis | one-for-one basis | ||||||||||
Description of conversion of preferred share | Class B - Series 31 | ||||||||||
Number of shares tendered | 69,570 | ||||||||||
Number of shares required for conversion | 1,000,000 | ||||||||||
Number of shares issued | 0 | ||||||||||
Dividend rate reset term | 5 years | ||||||||||
Earliest redemption date | Nov. 24, 2024 | ||||||||||
Dividend rate, percent | 3.851% | ||||||||||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments and Trading-Related Revenue - Summary of Financial Instruments Designated At Fair Value Through Profit Or Loss (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Securities | |||
Amortized cost | $ 24,472 | [1] | $ 6,485 |
Loans | |||
Consumer instalment and other personal | 67,736 | [1] | 63,225 |
Credit cards | 8,859 | [1] | 8,329 |
Business and government | 227,609 | [1] | 194,456 |
Loans gross of allowance for loan losses | 427,944 | [1] | 385,630 |
Deposits | 568,143 | [1] | 520,928 |
Securitization and structured entities' liabilities | 27,159 | [1] | 25,051 |
Subordinated debt | 6,995 | [1] | 6,782 |
Fair Value [Member] | |||
Securities | |||
Amortized cost | 24,622 | 6,288 | |
Not Carried At Fair Value [member] | At carrying value [member] | |||
Securities | |||
Amortized cost | 24,472 | 6,485 | |
Loans | |||
Residential mortgages | 123,676 | 119,544 | |
Consumer instalment and other personal | 67,200 | 62,687 | |
Credit cards | 8,623 | 8,099 | |
Business and government | 224,442 | 192,225 | |
Loans gross of allowance for loan losses | 423,941 | 382,555 | |
Deposits | 552,314 | 506,742 | |
Securitization and structured entities' liabilities | 27,159 | 25,051 | |
Subordinated debt | 6,995 | 6,782 | |
Not Carried At Fair Value [member] | Fair Value [Member] | |||
Securities | |||
Amortized cost | 24,622 | 6,288 | |
Loans | |||
Residential mortgages | 124,093 | 118,609 | |
Consumer instalment and other personal | 67,516 | 62,618 | |
Credit cards | 8,623 | 8,099 | |
Business and government | 225,145 | 191,989 | |
Loans gross of allowance for loan losses | 425,377 | 381,315 | |
Deposits | 553,444 | 506,581 | |
Securitization and structured entities' liabilities | 27,342 | 24,838 | |
Subordinated debt | 7,223 | 6,834 | |
Not Carried At Fair Value [member] | Fair Value [Member] | Valued using quoted market prices [member] | |||
Securities | |||
Amortized cost | 13,612 | 429 | |
Not Carried At Fair Value [member] | Fair Value [Member] | Valued using models (with observable inputs) [member] | |||
Securities | |||
Amortized cost | 11,010 | 5,795 | |
Loans | |||
Residential mortgages | 124,093 | 118,609 | |
Consumer instalment and other personal | 67,516 | 62,618 | |
Credit cards | 8,623 | 8,099 | |
Business and government | 225,145 | 191,989 | |
Loans gross of allowance for loan losses | 425,377 | 381,315 | |
Deposits | 553,444 | 506,581 | |
Securitization and structured entities' liabilities | 27,342 | 24,838 | |
Subordinated debt | $ 7,223 | 6,834 | |
Not Carried At Fair Value [member] | Fair Value [Member] | Valued using models (without observable inputs) [member] | |||
Securities | |||
Amortized cost | $ 64 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments and Trading-Related Revenue - Summary of Financial Instruments Designated At Fair Value Through Profit Or Loss (Parenthetical) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Fairvalue of financial instruments on balance sheet [line items] | |||
Business and government | $ 227,609 | [1] | $ 194,456 |
Deposits | 568,143 | [1] | 520,928 |
Financial assets at fair value through profit or loss [member] | |||
Fairvalue of financial instruments on balance sheet [line items] | |||
Business and government | 2,156 | 1,450 | |
Deposits | 15,829 | $ 14,186 | |
Financial assets at fair value through other comprehensive income [member] | |||
Fairvalue of financial instruments on balance sheet [line items] | |||
Business and government | $ 22 | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments and Trading-Related Revenue - Summary of Fair Value Measurement of Assets And Liabilities (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | $ 85,903 | [1] | $ 99,697 |
FVTPL Securities | 13,704 | [1] | 11,611 |
FVOCI Securities | 64,515 | [1] | 62,440 |
Business and Government Loans | 227,609 | [1] | 194,456 |
Derivative Assets | |||
Derivative Assets | 22,144 | [1] | 25,422 |
Derivative Liabilities | |||
Derivative Liabilities | 23,598 | [1] | 23,629 |
Measured at fair value [Member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 85,903 | 99,697 | |
FVTPL Securities | 13,704 | 11,611 | |
FVOCI Securities | 64,515 | 62,440 | |
Business and Government Loans | 2,178 | 1,450 | |
Securities sold but not yet purchased | 26,253 | 28,804 | |
Structured note liabilities and other note liabilities | 15,829 | 14,186 | |
Annuity liabilities | 1,043 | 800 | |
Fair value liabilities | 43,125 | 43,790 | |
Derivative Assets | |||
Derivative Assets | 22,144 | 25,422 | |
Derivative Liabilities | |||
Derivative Liabilities | 23,598 | 23,629 | |
Measured at fair value [Member] | Canadian federal government [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 8,330 | 10,320 | |
FVTPL Securities | 517 | 431 | |
FVOCI Securities | 11,944 | 12,805 | |
Measured at fair value [Member] | Canadian provincial and municipal governments [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 7,527 | 8,702 | |
FVTPL Securities | 1,279 | 946 | |
FVOCI Securities | 6,012 | 6,862 | |
Measured at fair value [Member] | U.S. federal government [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 8,763 | 9,517 | |
FVTPL Securities | 48 | 69 | |
FVOCI Securities | 15,975 | 16,823 | |
Measured at fair value [Member] | US States, municipalities and agencies [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 674 | 1,216 | |
FVOCI Securities | 4,161 | 3,655 | |
Measured at fair value [Member] | Other governments [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 1,585 | 1,411 | |
FVTPL Securities | 49 | ||
FVOCI Securities | 7,335 | 4,790 | |
Measured at fair value [Member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 11,046 | 9,184 | |
FVTPL Securities | 5 | 7 | |
FVOCI Securities | 14,000 | 13,687 | |
Measured at fair value [Member] | Corporate debt [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 7,718 | 9,198 | |
FVTPL Securities | 8,217 | 6,821 | |
FVOCI Securities | 5,007 | 3,756 | |
Measured at fair value [Member] | Loans held for trading [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 103 | 199 | |
Measured at fair value [Member] | Corporate equity [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 40,157 | 49,950 | |
FVTPL Securities | 3,589 | 3,337 | |
FVOCI Securities | 81 | 62 | |
Measured at fair value [Member] | Interest rate contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 10,457 | 8,195 | |
Derivative Liabilities | |||
Derivative Liabilities | 7,954 | 7,852 | |
Measured at fair value [Member] | Foreign exchange contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 9,269 | 12,999 | |
Derivative Liabilities | |||
Derivative Liabilities | 10,863 | 11,854 | |
Measured at fair value [Member] | Commodity contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 1,146 | 2,060 | |
Derivative Liabilities | |||
Derivative Liabilities | 1,680 | 1,456 | |
Measured at fair value [Member] | Equity contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 1,223 | 2,158 | |
Derivative Liabilities | |||
Derivative Liabilities | 2,999 | 2,430 | |
Measured at fair value [Member] | Credit default swaps [member] | |||
Derivative Assets | |||
Derivative Assets | 49 | 10 | |
Derivative Liabilities | |||
Derivative Liabilities | 102 | 37 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 62,556 | 76,852 | |
FVTPL Securities | 2,456 | 2,172 | |
FVOCI Securities | 36,636 | 37,232 | |
Securities sold but not yet purchased | 22,393 | 26,336 | |
Fair value liabilities | 22,393 | 26,336 | |
Derivative Assets | |||
Derivative Assets | 576 | ||
Derivative Liabilities | |||
Derivative Liabilities | 352 | 557 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Canadian federal government [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 6,959 | 9,107 | |
FVTPL Securities | 410 | 328 | |
FVOCI Securities | 11,168 | 11,978 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Canadian provincial and municipal governments [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 3,871 | 4,013 | |
FVTPL Securities | 364 | 219 | |
FVOCI Securities | 3,798 | 3,315 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | U.S. federal government [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 8,001 | 9,465 | |
FVTPL Securities | 69 | ||
FVOCI Securities | 15,068 | 16,823 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | US States, municipalities and agencies [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 48 | 78 | |
FVOCI Securities | 1 | 14 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Other governments [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 888 | 1,210 | |
FVOCI Securities | 4,396 | 3,143 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 14 | 60 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Corporate debt [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 2,620 | 2,973 | |
FVTPL Securities | 146 | 178 | |
FVOCI Securities | 2,205 | 1,959 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Corporate equity [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 40,155 | 49,946 | |
FVTPL Securities | 1,536 | 1,378 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Interest rate contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 14 | 18 | |
Derivative Liabilities | |||
Derivative Liabilities | 11 | 14 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Foreign exchange contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 7 | 16 | |
Derivative Liabilities | |||
Derivative Liabilities | 20 | 2 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Commodity contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 329 | 166 | |
Derivative Liabilities | |||
Derivative Liabilities | 218 | 295 | |
Valued using quoted market prices [member] | Measured at fair value [Member] | Equity contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 226 | 286 | |
Derivative Liabilities | |||
Derivative Liabilities | 103 | 246 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 22,802 | 22,583 | |
FVTPL Securities | 9,264 | 7,614 | |
FVOCI Securities | 27,797 | 25,145 | |
Business and Government Loans | 442 | ||
Securities sold but not yet purchased | 3,860 | 2,468 | |
Structured note liabilities and other note liabilities | 15,829 | 14,186 | |
Annuity liabilities | 1,043 | 800 | |
Fair value liabilities | 20,732 | 17,454 | |
Derivative Assets | |||
Derivative Assets | 21,568 | 24,936 | |
Derivative Liabilities | |||
Derivative Liabilities | 23,245 | 23,070 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Canadian federal government [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 1,371 | 1,213 | |
FVTPL Securities | 107 | 103 | |
FVOCI Securities | 776 | 827 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Canadian provincial and municipal governments [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 3,656 | 4,689 | |
FVTPL Securities | 915 | 727 | |
FVOCI Securities | 2,214 | 3,547 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | U.S. federal government [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 762 | 52 | |
FVTPL Securities | 48 | ||
FVOCI Securities | 907 | ||
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | US States, municipalities and agencies [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 626 | 1,138 | |
FVOCI Securities | 4,159 | 3,640 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Other governments [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 697 | 201 | |
FVTPL Securities | 49 | ||
FVOCI Securities | 2,939 | 1,647 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 10,494 | 8,869 | |
FVTPL Securities | 5 | 7 | |
FVOCI Securities | 14,000 | 13,687 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Corporate debt [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 5,091 | 6,218 | |
FVTPL Securities | 8,071 | 6,643 | |
FVOCI Securities | 2,802 | 1,797 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Loans held for trading [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 103 | 199 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Corporate equity [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 2 | 4 | |
FVTPL Securities | 69 | 134 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Interest rate contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 10,443 | 8,177 | |
Derivative Liabilities | |||
Derivative Liabilities | 7,943 | 7,838 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Foreign exchange contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 9,262 | 12,983 | |
Derivative Liabilities | |||
Derivative Liabilities | 10,843 | 11,852 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Commodity contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 817 | 1,894 | |
Derivative Liabilities | |||
Derivative Liabilities | 1,462 | 1,161 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Equity contracts [member] | |||
Derivative Assets | |||
Derivative Assets | 997 | 1,872 | |
Derivative Liabilities | |||
Derivative Liabilities | 2,896 | 2,183 | |
Valued using models (with observable inputs) [member] | Measured at fair value [Member] | Credit default swaps [member] | |||
Derivative Assets | |||
Derivative Assets | 49 | 10 | |
Derivative Liabilities | |||
Derivative Liabilities | 101 | 36 | |
Valued using models (without observable inputs) [member] | Measured at fair value [Member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 545 | 262 | |
FVTPL Securities | 1,984 | 1,825 | |
FVOCI Securities | 82 | 63 | |
Business and Government Loans | 1,736 | 1,450 | |
Derivative Liabilities | |||
Derivative Liabilities | 1 | 2 | |
Valued using models (without observable inputs) [member] | Measured at fair value [Member] | US States, municipalities and agencies [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
FVOCI Securities | 1 | 1 | |
Valued using models (without observable inputs) [member] | Measured at fair value [Member] | NHA MBS US agency MBS and CMO [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 538 | 255 | |
Valued using models (without observable inputs) [member] | Measured at fair value [Member] | Corporate debt [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
Trading Securities | 7 | 7 | |
Valued using models (without observable inputs) [member] | Measured at fair value [Member] | Corporate equity [member] | |||
Disclosure Of Fair Value Of Financial Instruments [line items] | |||
FVTPL Securities | 1,984 | 1,825 | |
FVOCI Securities | 81 | 62 | |
Valued using models (without observable inputs) [member] | Measured at fair value [Member] | Equity contracts [member] | |||
Derivative Liabilities | |||
Derivative Liabilities | 1 | ||
Valued using models (without observable inputs) [member] | Measured at fair value [Member] | Credit default swaps [member] | |||
Derivative Liabilities | |||
Derivative Liabilities | $ 1 | $ 1 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments and Trading-Related Revenue - Summary of Fair Value Measurement of Investment (Detail) $ in Millions | 12 Months Ended |
Oct. 31, 2019CAD ($) | |
Corporate equity [member] | Valued using models (without observable inputs) [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Fair value of assets | $ 1,984 |
Corporate equity [member] | Bottom of range [member] | Valued using models (without observable inputs) [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
EV/EBITDA multiple range of input values | 5x |
Corporate equity [member] | Top of range [member] | Valued using models (without observable inputs) [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
EV/EBITDA multiple range of input values | 16x |
Loan [Member] | Valued using models (without observable inputs) [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Fair value of assets | $ 1,736 |
Loan [Member] | Bottom of range [member] | Valued using models (without observable inputs) [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Discount range of input values | 0.70% |
Loan [Member] | Top of range [member] | Valued using models (without observable inputs) [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Discount range of input values | 1.15% |
NHA MBS US Agency MBS And CMO [member] | Valued using models (without observable inputs) [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Fair value of assets | $ 538 |
NHA MBS US Agency MBS And CMO [member] | Bottom of range [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Comparability adjustment | (5.91) |
Discounted cash flows and Prepayment rate cahnges in percentage | 2.00% |
NHA MBS US Agency MBS And CMO [member] | Top of range [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Comparability adjustment | 8.57 |
Discounted cash flows and Prepayment rate cahnges in percentage | 30.00% |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments and Trading-Related Revenue - Summary of Fair Value Measurement of Investment (Parenthetical) (Detail) $ in Millions | 12 Months Ended |
Oct. 31, 2019CAD ($) | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Basis point increase or decrease in discount margin for business and government loans | 0.10% |
Increase or decrease in discount margin business and government loans | $ 3 |
Federal reserve stock and federal home loan bank stock [member] | Corporate equity [member] | |
Disclosure Of Fair Value Of Financial Instruments [Line Items] | |
Federal reserve stock and federal home loan bank stock | $ 829 |
Fair Value of Financial Instr_8
Fair Value of Financial Instruments and Trading-Related Revenue - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Trading securities [member] | ||
Disclosure Of Fair Value Of Financial Instruments [Line Items] | ||
Transfers out of Level 1 into Level 2 of fair value hierarchy | $ 5,831 | $ 2,578 |
Transfers out of Level 2 into Level 1 of fair value hierarchy | 7,985 | 4,122 |
Trading securities [member] | Valued using models (with observable inputs) [member] | ||
Disclosure Of Fair Value Of Financial Instruments [Line Items] | ||
Transfers out of Level 2 into Level 3 of fair value hierarchy | 159 | |
Transfers out of Level 3 into Level 2 of fair value hierarchy | 87 | |
Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure Of Fair Value Of Financial Instruments [Line Items] | ||
Transfers out of Level 1 into Level 2 of fair value hierarchy | 11,014 | 2,266 |
Transfers out of Level 2 into Level 1 of fair value hierarchy | 7,309 | 4,044 |
Financial assets at fair value through profit or loss [member] | ||
Disclosure Of Fair Value Of Financial Instruments [Line Items] | ||
Transfers out of Level 1 into Level 2 of fair value hierarchy | 715 | 714 |
Transfers out of Level 2 into Level 1 of fair value hierarchy | 808 | 742 |
Securities Sold But Not Yet Purchased [Member] | ||
Disclosure Of Fair Value Of Financial Instruments [Line Items] | ||
Transfers out of Level 1 into Level 2 of fair value hierarchy | 9,973 | 3,971 |
Transfers out of Level 2 into Level 1 of fair value hierarchy | $ 7,898 | $ 4,210 |
Fair Value of Financial Instr_9
Fair Value of Financial Instruments and Trading-Related Revenue - Summary of Changes in Level 3 Instruments Carried At Fair Value (Detail) - Valued using models (without observable inputs) [member] - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
NHA MBS US Agency MBS And CMO [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at end of period | $ 538 | |
Corporate equity [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at end of period | 1,984 | |
Trading securities [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 262 | $ 0 |
Change in fair value included in earnings | (46) | (1) |
Change in fair value included in other comprehensive income | 1 | 4 |
Purchases | 698 | 313 |
Sales | (442) | (54) |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 159 | 0 |
Transfers out of Level 3 | (87) | 0 |
Assets at end of period | 545 | 262 |
Change in unrealized gains (losses) recorded in income for instruments still held | (16) | (5) |
Trading securities [member] | NHA MBS US Agency MBS And CMO [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 255 | 0 |
Change in fair value included in earnings | (46) | (1) |
Change in fair value included in other comprehensive income | 1 | 4 |
Purchases | 654 | 306 |
Sales | (399) | (54) |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 159 | 0 |
Transfers out of Level 3 | (86) | 0 |
Assets at end of period | 538 | 255 |
Change in unrealized gains (losses) recorded in income for instruments still held | (16) | (5) |
Trading securities [member] | Corporate debt [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 7 | 0 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 0 | 0 |
Purchases | 44 | 7 |
Sales | (43) | 0 |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | (1) | 0 |
Assets at end of period | 7 | 7 |
Change in unrealized gains (losses) recorded in income for instruments still held | 0 | 0 |
Financial assets at fair value through profit or loss [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 1,825 | 1,774 |
Change in fair value included in earnings | 21 | 12 |
Change in fair value included in other comprehensive income | (2) | 27 |
Purchases | 421 | 312 |
Sales | (280) | (161) |
Maturities/Settlement | (1) | (2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (137) |
Assets at end of period | 1,984 | 1,825 |
Change in unrealized gains (losses) recorded in income for instruments still held | 58 | 5 |
Financial assets at fair value through profit or loss [member] | Corporate debt [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 0 | 73 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 0 | (4) |
Purchases | 0 | 5 |
Sales | 0 | 0 |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (74) |
Assets at end of period | 0 | 0 |
Change in unrealized gains (losses) recorded in income for instruments still held | 0 | 0 |
Financial assets at fair value through profit or loss [member] | Corporate equity [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 1,825 | 1,701 |
Change in fair value included in earnings | 21 | 12 |
Change in fair value included in other comprehensive income | (2) | 31 |
Purchases | 421 | 307 |
Sales | (280) | (161) |
Maturities/Settlement | (1) | (2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | (63) |
Assets at end of period | 1,984 | 1,825 |
Change in unrealized gains (losses) recorded in income for instruments still held | 58 | 5 |
Financial assets at fair value through other comprehensive income, category [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 63 | 3 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 2 | 0 |
Purchases | 17 | 62 |
Sales | 0 | 0 |
Maturities/Settlement | 0 | (2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Assets at end of period | 82 | 63 |
Financial assets at fair value through other comprehensive income, category [member] | Corporate debt [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 0 | 2 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Maturities/Settlement | 0 | (2) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Assets at end of period | 0 | 0 |
Financial assets at fair value through other comprehensive income, category [member] | Corporate equity [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 62 | 0 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 2 | 0 |
Purchases | 17 | 62 |
Sales | 0 | 0 |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Assets at end of period | 81 | 62 |
Financial assets at fair value through other comprehensive income, category [member] | US States, municipalities and agencies [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 1 | 1 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Assets at end of period | 1 | 1 |
Business and government loans [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Assets at beginning of period | 1,450 | 2,372 |
Change in fair value included in earnings | 7 | (2) |
Change in fair value included in other comprehensive income | 8 | 24 |
Purchases | 1,410 | 604 |
Sales | 0 | 0 |
Maturities/Settlement | (1,139) | (1,548) |
Transfers into Level 3 | 0 | 0 |
Transfers out of Level 3 | 0 | 0 |
Assets at end of period | 1,736 | 1,450 |
Change in unrealized gains (losses) recorded in income for instruments still held | 0 | 0 |
Derivatives Liabilities [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Liabilities at beginning of period | 2 | 0 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 1 | 2 |
Transfers out of Level 3 | (2) | 0 |
Liabilities at end of period | 1 | 2 |
Change in unrealized gains (losses) recorded in income for instruments still held | 0 | 0 |
Derivatives Liabilities [member] | Equity contracts [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Liabilities at beginning of period | 1 | 0 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 0 | 1 |
Transfers out of Level 3 | (1) | 0 |
Liabilities at end of period | 0 | 1 |
Change in unrealized gains (losses) recorded in income for instruments still held | 0 | 0 |
Derivatives Liabilities [member] | Credit default swaps [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Liabilities at beginning of period | 1 | 0 |
Change in fair value included in earnings | 0 | 0 |
Change in fair value included in other comprehensive income | 0 | 0 |
Purchases | 0 | 0 |
Sales | 0 | 0 |
Maturities/Settlement | 0 | 0 |
Transfers into Level 3 | 1 | 1 |
Transfers out of Level 3 | (1) | 0 |
Liabilities at end of period | 1 | 1 |
Change in unrealized gains (losses) recorded in income for instruments still held | 0 | $ 0 |
Fair Value Liabilities [Member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Change in fair value included in earnings | 0 | |
Change in fair value included in other comprehensive income | 0 | |
Purchases | (7) | |
Sales | 7 | |
Maturities/Settlement | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Liabilities at end of period | 0 | |
Change in unrealized gains (losses) recorded in income for instruments still held | 0 | |
Fair Value Liabilities [Member] | Securities sold but not yet purchased [member] | ||
Disclosure of reconciliation of changes in fair value measurement assets liabilities [line items] | ||
Change in fair value included in earnings | 0 | |
Change in fair value included in other comprehensive income | 0 | |
Purchases | (7) | |
Sales | 7 | |
Maturities/Settlement | 0 | |
Transfers into Level 3 | 0 | |
Transfers out of Level 3 | 0 | |
Liabilities at end of period | 0 | |
Change in unrealized gains (losses) recorded in income for instruments still held | $ 0 |
Fair Value of Financial Inst_10
Fair Value of Financial Instruments and Trading-Related Revenue - Summary of Trading Revenue (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Trading revenue [abstract] | ||||
Interest rates | $ 700 | $ 437 | $ 480 | |
Foreign exchange | 401 | 377 | 369 | |
Equities | 269 | 449 | 239 | |
Commodities | 145 | 63 | 84 | |
Other | 6 | 95 | 39 | |
Total trading revenue | 1,521 | 1,421 | 1,211 | |
Net interest income | 1,223 | 716 | 1,127 | |
Non-interest revenue - trading revenue | 298 | [1] | 705 | 84 |
Total trading revenue | $ 1,521 | $ 1,421 | $ 1,211 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Offsetting of Financial Asset_3
Offsetting of Financial Assets and Financial Liabilities - Summary of Amounts Not Offset in the Consolidated Balance Sheet (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross amounts | $ 127,372 | $ 112,356 |
Amounts offset in | 1,224 | 1,883 |
Net amounts presented in balance sheet | 126,148 | 110,473 |
Impact of master netting agreements | 23,457 | 29,091 |
Securities received as collateral | 94,802 | 70,984 |
Cash collateral | 2,832 | 3,576 |
Net amount | 5,057 | 6,822 |
Gross amounts | 111,478 | 92,196 |
Amounts offset in | 1,224 | 1,883 |
Net amounts presented in balance sheet | 110,254 | 90,313 |
Impact of master netting agreements | 23,457 | 29,091 |
Securities pledged as collateral | 78,441 | 53,510 |
Cash collateral | 2,975 | 1,492 |
Net amount | 5,381 | 6,220 |
Securities purchased under resale agreements and securities borrowed [member] | ||
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross amounts | 104,949 | 86,635 |
Amounts offset in | 945 | 1,584 |
Net amounts presented in balance sheet | 104,004 | 85,051 |
Impact of master netting agreements | 9,919 | 13,516 |
Securities received as collateral | 93,062 | 70,479 |
Cash collateral | 82 | |
Net amount | 941 | 1,056 |
Derivative financial instruments assets 1 [member] | ||
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross amounts | 22,423 | 25,721 |
Amounts offset in | 279 | 299 |
Net amounts presented in balance sheet | 22,144 | 25,422 |
Impact of master netting agreements | 13,538 | 15,575 |
Securities received as collateral | 1,740 | 505 |
Cash collateral | 2,750 | 3,576 |
Net amount | 4,116 | 5,766 |
Derivative financial instruments liabilities 1 [member] | ||
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross amounts | 23,877 | 23,928 |
Amounts offset in | 279 | 299 |
Net amounts presented in balance sheet | 23,598 | 23,629 |
Impact of master netting agreements | 13,538 | 15,575 |
Securities pledged as collateral | 1,940 | 600 |
Cash collateral | 2,971 | 1,492 |
Net amount | 5,149 | 5,962 |
Obligations related to securities sold under repurchase agreements and securities lent [member] | ||
Disclosure of offsetting of financial assets and financial liabilities [Line Items] | ||
Gross amounts | 87,601 | 68,268 |
Amounts offset in | 945 | 1,584 |
Net amounts presented in balance sheet | 86,656 | 66,684 |
Impact of master netting agreements | 9,919 | 13,516 |
Securities pledged as collateral | 76,501 | 52,910 |
Cash collateral | 4 | |
Net amount | $ 232 | $ 258 |
Capital Management - Additional
Capital Management - Additional Information (Detail) | 12 Months Ended |
Oct. 31, 2019 | |
Disclosure of capital management [abstract] | |
Capital conservation buffer, percentage | 2.50% |
Common equity surcharge, percentage | 1.00% |
Domestic stability buffer, percentage | 2.00% |
Capital Management - Summary of
Capital Management - Summary of Regulatory Capital Measure and Risk-Weighted Assets (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Fixed Rate of Instruments [Abstract] | ||
Common Equity Tier 1 Capital | $ 36,071 | $ 32,721 |
Tier 1 Capital | 41,201 | 37,220 |
Total Capital | 48,340 | 44,116 |
Common Equity Tier 1 Capital Risk-Weighted Assets | 317,029 | 289,237 |
Tier 1 Capital Risk-Weighted Assets | 317,029 | 289,420 |
Total Capital Risk-Weighted Assets | 317,029 | 289,604 |
Leverage Exposure | $ 956,493 | $ 876,106 |
Common Equity Tier 1 Capital Ratio | 11.40% | 11.30% |
Tier 1 Capital Ratio | 13.00% | 12.90% |
Total Capital Ratio | 15.20% | 15.20% |
Leverage Ratio | 4.30% | 4.20% |
Employee Compensation - Share_3
Employee Compensation - Share-Based Compensation - Additional Information (Detail) shares in Millions | 12 Months Ended | |||
Oct. 31, 2019CAD ($)shares | Oct. 31, 2018CAD ($)shares | Oct. 31, 2017CAD ($)shares | ||
Disclosure of Sharebased Payment [Line Items] | ||||
Option life, share options granted | 10 | |||
Employee compensation expense | $ 8,423,000,000 | [1] | $ 7,461,000,000 | $ 7,468,000,000 |
Aggregate intrinsic value of stock options outstanding | 130,000,000 | 162,000,000 | 232,000,000 | |
Aggregate intrinsic value of stock options exercisable | 116,000,000 | 140,000,000 | 174,000,000 | |
Weighted average fair value of options granted | 10.23 | 11.30 | 11.62 | |
Weighted average exercise price, options | 89.90 | 100.63 | 96.90 | |
Other liabilities | 38,607,000,000 | [1] | 36,985,000,000 | |
Payments under deferred incentive plan | 3,000,000 | 4,000,000 | ||
Assets 1 [member] | Compensation trusts [member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Assets recognised | 1,752,000,000 | 1,752,000,000 | ||
Third party [Member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Employee compensation expense before tax | 0 | 0 | (7,000,000) | |
Employee compensation expense | 0 | 0 | (5,000,000) | |
Employee Stock Option Plan [Member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Employee compensation expense before tax | 9,000,000 | 7,000,000 | 8,000,000 | |
Employee compensation expense | 8,000,000 | 7,000,000 | 7,000,000 | |
Share purchase plan [member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Employee compensation expense | $ 54,000,000 | $ 51,000,000 | $ 53,000,000 | |
Percentage of employer matching contribution for contribution up to 6% | 50.00% | |||
Percentage of employee contribution towards share ownership plans | 6.00% | |||
Share purchase plan contribution vesting period | 2 years | |||
Individual gross salary for employees contribution | $ 100,000 | |||
Description of employee ownership plan contribution | We match 50% of employee contributions up to 6% of their individual gross salary to a maximum of $100,000. Our contributions during the first two years vest after two years of participation in the plan, with subsequent contributions vesting immediately. | |||
Common shares held in plan | shares | 18 | 17.8 | 18.3 | |
Midstream incentive plan [member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Employee compensation expense before tax | $ 610,000,000 | $ 595,000,000 | $ 703,000,000 | |
Employee compensation expense | 448,000,000 | 437,000,000 | 516,000,000 | |
Weighted average fair value of options granted | $ 616,000,000 | $ 581,000,000 | $ 515,000,000 | |
Units granted | 6,300,000 | 5,900,000 | 5,900,000 | |
Gains on hedge contract | $ 20,000,000 | $ 51,000,000 | $ 183,000,000 | |
Deferred incentive plan outstanding | 17,200,000 | 17,100,000 | 17,000,000 | |
Intrinsic value of share other than options vested | $ 1,251,000,000 | $ 1,269,000,000 | $ 1,253,000,000 | |
Cash payments made in relation to liabilities | 642,000,000 | 598,000,000 | 343,000,000 | |
Midstream incentive plan [member] | Equity contracts [member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Employee compensation expense | 590,000,000 | 544,000,000 | 520,000,000 | |
Deferred incentive plans [member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Employee compensation expense before tax | 17,000,000 | 27,000,000 | 91,000,000 | |
Employee compensation expense | $ 12,000,000 | $ 20,000,000 | $ 67,000,000 | |
Deferred incentive plan outstanding | 4,800,000 | 4,900,000 | 5,000,000 | |
Deferred incentive plan units granted | 300,000 | 300,000 | 300,000 | |
Weighted average fair value at measurement date | $ 32,000,000 | $ 33,000,000 | $ 32,000,000 | |
Other liabilities | 478,000,000 | 485,000,000 | ||
Payments under deferred incentive plan | 59,000,000 | 60,000,000 | 32,000,000 | |
Gains on derivatives | 4,000,000 | 8,000,000 | 78,000,000 | |
gains resulted in net employee compensation expense before tax | 13,000,000 | 19,000,000 | 13,000,000 | |
gains resulted in net employee compensation expense | $ 10,000,000 | $ 14,000,000 | $ 10,000,000 | |
Options granted after to december two thousand thirteen [member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Options granted vesting percentage | 50.00% | |||
Options granted vesting period | vest in equal tranches of 50% on the third and fourth anniversaries of their grant date | |||
Options granted prior to december two thousand thirteen [member] | ||||
Disclosure of Sharebased Payment [Line Items] | ||||
Options granted vesting period | vest in tranches over a four-year period starting from their grant date | |||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Employee Compensation - Share_4
Employee Compensation - Share-Based Compensation - Summary of Information about our Stock Option Plan (Detail) | 12 Months Ended | ||
Oct. 31, 2019CAD ($)shares | Oct. 31, 2018CAD ($)shares | Oct. 31, 2017CAD ($)shares | |
Disclosure Of Number And Weighted Average Exercise Prices Of Share Options and awards [Line Items] | |||
Weighted-average exercise price,Granted | $ 89.90 | $ 100.63 | $ 96.90 |
Employee Stock Options [Member] | |||
Disclosure Of Number And Weighted Average Exercise Prices Of Share Options and awards [Line Items] | |||
Number of stock options, Outstanding at beginning of year | 6,095,201 | 7,525,296 | 9,805,299 |
Number of stock options, Granted | 931,047 | 705,398 | 723,431 |
Number of stock options, Exercised | 902,651 | 1,513,307 | 2,233,801 |
Number of stock options, Forfeited/cancelled | 4,756 | 152,417 | 13,243 |
Number of stock options, Expired | 10,534 | 469,769 | 756,390 |
Number of stock options, Outstanding at end of year | 6,108,307 | 6,095,201 | 7,525,296 |
Number of stock options, Exercisable at end of year | 3,507,803 | 3,782,481 | 4,584,375 |
Number of stock options, Available for grant | shares | 2,487,645 | 3,405,239 | 3,811,157 |
Weighted-average exercise price, Outstanding at beginning of year | $ 72.19 | $ 72.05 | $ 77.41 |
Weighted-average exercise price,Granted | 89.90 | 100.63 | 96.90 |
Weighted-average exercise price,Exercised | 60.21 | 58.40 | 57.80 |
Weighted-average exercise price,Forfeited/cancelled | 98.96 | 86.85 | 66.89 |
Weighted-average exercise price,Expired | 103.79 | 153.40 | 195.02 |
Weighted-average exercise price,Outstanding at end of year | 76.59 | 72.19 | 72.05 |
Weighted-average exercise price,Exercisable at end of year | $ 64.57 | $ 61.39 | $ 67.42 |
Employee Compensation - Share_5
Employee Compensation - Share-Based Compensation - Summary of Options Outstanding and Exercisable by Range of Exercise Price (Detail) - Employee Stock Options [Member] | 12 Months Ended | |||
Oct. 31, 2019CAD ($)yr | Oct. 31, 2018CAD ($) | Oct. 31, 2017CAD ($) | Oct. 31, 2016CAD ($) | |
Disclosure of range of exercise prices of share options [Line Items] | ||||
Number of stock options | 6,108,307 | 6,095,201 | 7,525,296 | 9,805,299 |
Weighted- average exercise price | $ 76.59 | $ 72.19 | $ 72.05 | $ 77.41 |
Number of stock options | 3,507,803 | 3,782,481 | 4,584,375 | |
Weighted- average exercise price | $ 64.57 | $ 61.39 | $ 67.42 | |
Range of exercise prices $50.01 to $60.00 [member] | ||||
Disclosure of range of exercise prices of share options [Line Items] | ||||
Number of stock options | 1,229,196 | |||
Weighted- average remaining contractual life (years) | yr | 1.7 | |||
Weighted- average exercise price | $ 56.42 | |||
Number of stock options | 1,229,196 | |||
Weighted- average remaining contractual life (years) | 1.7 | |||
Weighted- average exercise price | $ 56.42 | |||
Range of exercise prices $60.01 to $70.00 [member] | ||||
Disclosure of range of exercise prices of share options [Line Items] | ||||
Number of stock options | 1,535,630 | |||
Weighted- average remaining contractual life (years) | yr | 3.7 | |||
Weighted- average exercise price | $ 64.71 | |||
Number of stock options | 1,535,630 | |||
Weighted- average remaining contractual life (years) | 3.7 | |||
Weighted- average exercise price | $ 64.71 | |||
Range of exercise prices $70.01 to $80.00 [member] | ||||
Disclosure of range of exercise prices of share options [Line Items] | ||||
Number of stock options | 1,082,146 | |||
Weighted- average remaining contractual life (years) | yr | 5.7 | |||
Weighted- average exercise price | $ 77.59 | |||
Number of stock options | 741,659 | |||
Weighted- average remaining contractual life (years) | 5.5 | |||
Weighted- average exercise price | $ 77.75 | |||
Range of exercise prices $80.01 to $90.00 [member] | ||||
Disclosure of range of exercise prices of share options [Line Items] | ||||
Number of stock options | 928,566 | |||
Weighted- average remaining contractual life (years) | yr | 9.1 | |||
Weighted- average exercise price | $ 89.89 | |||
Number of stock options | 753 | |||
Weighted- average remaining contractual life (years) | 0.5 | |||
Weighted- average exercise price | $ 81.77 | |||
Range of exercise prices $90.01 and over [member] | ||||
Disclosure of range of exercise prices of share options [Line Items] | ||||
Number of stock options | 1,332,769 | |||
Weighted- average remaining contractual life (years) | yr | 7.6 | |||
Weighted- average exercise price | $ 98.81 | |||
Number of stock options | 565 | |||
Weighted- average remaining contractual life (years) | 0.5 | |||
Weighted- average exercise price | $ 99.02 |
Employee Compensation - Share_6
Employee Compensation - Share-Based Compensation - Summary of Further Information about our Stock Option Plan (Detail) - CAD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of number and weighted average exercise price of share options [abstract] | |||
Unrecognized compensation cost for non-vested stock option awards | $ 6 | $ 5 | $ 5 |
Weighted-average period over which this cost will be recognized(in years) | 2 years 7 months 6 days | 2 years 7 months 6 days | 2 years 8 months 12 days |
Total intrinsic value of stock options exercised | $ 36 | $ 67 | $ 90 |
Cash proceeds from stock options exercised | $ 54 | $ 88 | $ 129 |
Weighted-average share price for stock options exercised (in dollars) | $ 99.84 | $ 102.55 | $ 98.05 |
Employee Compensation - Share_7
Employee Compensation - Share-Based Compensation - Summary of Ranges of Values used for each Option Pricing Assumption (Detail) - yr | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expected dividend yield | 5.70% | 4.10% | 4.30% |
Risk-free rate of return | 2.50% | 2.10% | |
Expected period until exercise (in years) | 10 | ||
Bottom of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expected share price volatility | 20.00% | 17.00% | 18.40% |
Risk-free rate of return | 1.70% | ||
Expected period until exercise (in years) | 6.5 | 6.5 | 6.5 |
Top of range [member] | |||
Disclosure of terms and conditions of share-based payment arrangement [line items] | |||
Expected share price volatility | 20.10% | 17.30% | 18.80% |
Risk-free rate of return | 1.80% | ||
Expected period until exercise (in years) | 7 | 7 | 7 |
Employee Compensation - Pensi_3
Employee Compensation - Pension and Other Employee Future Benefits - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2020 | Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of defined benefit plans [line items] | |||
Curtailment gain in non-interest expense, employee compensation | $ 52 | ||
payment to bank and certain subsidiaries for investment management, record-keeping, custodial and administrative services rendered | 3 | $ 4 | |
Scenario, Forecast [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Benefit payments for fiscal 2020 estimated | $ 536 | ||
Pension Plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Past service cost (income) | (5) | 7 | |
Benefit payments for fiscal 2020 estimated | 277 | ||
Other employee future benefit plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Past service cost (income) | (277) | ||
Benefit payments for fiscal 2020 estimated | $ 43 | ||
Canadian plans [member] | Common shares [member] | |||
Disclosure of defined benefit plans [line items] | |||
Plan assets | $ 10 | $ 15 |
Employee Compensation - Summary
Employee Compensation - Summary of Asset Allocation Ranges and Weighted-average Actual Asset Allocations (Detail) - Pension Plans [member] | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Equity Securities 1 [Member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan weighted average asset allocation | 32.00% | 37.00% |
Fixed income investments [member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan weighted average asset allocation | 51.00% | 46.00% |
Alternative Strategies [Member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan weighted average asset allocation | 17.00% | 17.00% |
Bottom of range [member] | Equity Securities 1 [Member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan target asset allocation | 20.00% | |
Bottom of range [member] | Fixed income investments [member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan target asset allocation | 25.00% | |
Bottom of range [member] | Alternative Strategies [Member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan target asset allocation | 15.00% | |
Top of range [member] | Equity Securities 1 [Member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan target asset allocation | 50.00% | |
Top of range [member] | Fixed income investments [member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan target asset allocation | 55.00% | |
Top of range [member] | Alternative Strategies [Member] | ||
Disclosure of weighted average asset allocations [Line Items] | ||
Defined benefit plan target asset allocation | 45.00% |
Employee Compensation - Summa_2
Employee Compensation - Summary of Plan Information for the Past Three Years (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Disclosure of defined benefit plans [line items] | |||
Fair value of plan assets | $ 8,502 | $ 7,559 | |
Pension Plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation | 9,866 | 8,311 | $ 8,846 |
Fair value of plan assets | 9,723 | 8,719 | 8,990 |
Surplus (deficit) and net defined benefit asset (liability) | (143) | 408 | 144 |
Pension Plans [member] | Funded plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) | 36 | 573 | 339 |
Pension Plans [member] | Unfunded plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) | (179) | (165) | (195) |
Other employee future benefit plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation | 1,254 | 1,113 | 1,460 |
Fair value of plan assets | 175 | 153 | 157 |
Surplus (deficit) and net defined benefit asset (liability) | (1,079) | (960) | (1,303) |
Other employee future benefit plans [member] | Funded plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) | 46 | 37 | 28 |
Other employee future benefit plans [member] | Unfunded plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) | $ (1,125) | $ (997) | $ (1,331) |
Employee Compensation - Summa_3
Employee Compensation - Summary of Pension and Other Employee Future Benefit Expenses (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Disclosure of defined benefit plans [line items] | ||||
Total annual pension and other employee future benefit expenses recognized in the Consolidated Statement of Income | $ 8,423 | [1] | $ 7,461 | $ 7,468 |
Pension Plans [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | 193 | 210 | 254 | |
Net interest (income) expense on net defined benefit (asset) liability | (20) | (10) | 7 | |
Past service cost (income) | (5) | 7 | ||
Administrative expenses | 5 | 5 | 5 | |
Benefits expense | 173 | 212 | 266 | |
Defined contribution expense | 170 | 153 | 123 | |
Total annual pension and other employee future benefit expenses recognized in the Consolidated Statement of Income | 425 | 441 | 464 | |
Pension Plans [member] | Canada and Quebec [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Benefits expense | 82 | 76 | 75 | |
Other employee future benefit plans [member] | ||||
Disclosure of defined benefit plans [line items] | ||||
Current service cost | 9 | 26 | 32 | |
Net interest (income) expense on net defined benefit (asset) liability | 37 | 45 | 47 | |
Past service cost (income) | (277) | |||
Remeasurement of other long-term benefits | 6 | (10) | (6) | |
Benefits expense | 52 | (216) | 73 | |
Total annual pension and other employee future benefit expenses recognized in the Consolidated Statement of Income | $ 52 | $ (216) | $ 73 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Employee Compensation - Summa_4
Employee Compensation - Summary of Weighted-average Assumptions (Detail) | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Pension Plans [member] | Defined Benefit Expenses [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate at beginning of year | 4.00% | 3.50% | 3.40% |
Rate of compensation increase | 2.40% | 2.40% | 2.80% |
Pension Plans [member] | Defined Benefit Obligation [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate at beginning of year | 3.00% | 4.00% | 3.50% |
Rate of compensation increase | 2.10% | 2.40% | 2.40% |
Other employee future benefit plans [member] | Defined Benefit Expenses [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate at beginning of year | 4.10% | 3.60% | 3.60% |
Rate of compensation increase | 2.00% | 2.00% | 2.40% |
Assumed overall health care cost trend rate | 4.90% | 4.90% | 5.20% |
Other employee future benefit plans [member] | Defined Benefit Obligation [Member] | |||
Disclosure of defined benefit plans [line items] | |||
Discount rate at beginning of year | 3.00% | 4.10% | 3.60% |
Rate of compensation increase | 2.00% | 2.00% | 2.00% |
Assumed overall health care cost trend rate | 4.90% | 4.90% | 5.20% |
Employee Compensation - Summa_5
Employee Compensation - Summary of Weighted-average Assumptions (Parenthetical) (Detail) | Oct. 31, 2040 | Oct. 31, 2031 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Pension Plans [member] | Current service costs [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Actuarial assumption of discount rates | 4.10% | 3.70% | 3.68% | ||
Pension Plans [member] | Defined Benefit Expenses [Member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Actuarial assumption of discount rates | 4.00% | 3.50% | 3.40% | ||
Other employee future benefit plans [member] | Current service costs [member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Actuarial assumption of discount rates | 4.20% | 3.76% | 3.78% | ||
Other employee future benefit plans [member] | Defined Benefit Expenses [Member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Assumed overall health care cost trend rate | 4.90% | 4.90% | 5.20% | ||
Actuarial assumption of discount rates | 4.10% | 3.60% | 3.60% | ||
Scenario, Forecast [Member] | Other employee future benefit plans [member] | Defined Benefit Expenses [Member] | |||||
Disclosure of defined benefit plans [line items] | |||||
Assumed overall health care cost trend rate | 4.10% | 4.50% |
Employee Compensation - Summa_6
Employee Compensation - Summary of Current Life Expectancies Underlying the Amounts of the Defined Benefit Obligations (Detail) | Oct. 31, 2019 | Oct. 31, 2018 |
Canada [member] | Retiring currently at age sixty five [member] | Male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Life expectancy for members | 23.7 | 23.7 |
Canada [member] | Retiring currently at age sixty five [member] | Female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Life expectancy for members | 24.1 | 24 |
Canada [member] | Currently aged forty five and retiring at age sixty five [member] | Male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Life expectancy for members | 24.7 | 24.6 |
Canada [member] | Currently aged forty five and retiring at age sixty five [member] | Female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Life expectancy for members | 25 | 25 |
United States [member] | Retiring currently at age sixty five [member] | Male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Life expectancy for members | 21.7 | 21.9 |
United States [member] | Retiring currently at age sixty five [member] | Female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Life expectancy for members | 23 | 23.4 |
United States [member] | Currently aged forty five and retiring at age sixty five [member] | Male [member] | ||
Disclosure of defined benefit plans [line items] | ||
Life expectancy for members | 22.8 | 23.1 |
United States [member] | Currently aged forty five and retiring at age sixty five [member] | Female [member] | ||
Disclosure of defined benefit plans [line items] | ||
Life expectancy for members | 24.2 | 24.5 |
Employee Compensation - Summa_7
Employee Compensation - Summary of Changes in Estimated Financial Positions of Defined Benefit Pension Plans and Other Employee Future Benefit Plans (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of defined benefit plans [line items] | |||
Benefits paid | $ 3 | $ 4 | |
Pension Plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) at end of year | (143) | 408 | $ 144 |
Current service cost | 193 | 210 | 254 |
Past service cost (income) | (5) | 7 | |
Interest cost | (20) | (10) | 7 |
Changes in demographic assumptions | 9 | 50 | |
Changes in financial assumptions | (1,345) | 562 | |
Plan member experience | (92) | (16) | |
Foreign exchange and other | (9) | 6 | |
Actuarial gains (losses) recognized in other comprehensive income for the year | (642) | 279 | |
Pension Plans [member] | Present value of defined benefit obligation [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation at beginning of year | 8,311 | 8,846 | |
U.S. plan merger | 46 | ||
Current service cost | 193 | 210 | |
Past service cost (income) | (5) | 7 | |
Interest cost | 324 | 299 | |
Benefits paid | (456) | (492) | |
Employer contributions | 17 | 15 | |
Changes in demographic assumptions | (9) | (50) | |
Changes in financial assumptions | 1,345 | (562) | |
Plan member experience | 92 | 16 | |
Foreign exchange and other | 8 | 22 | |
Defined benefit obligation at end of year | 9,866 | 8,311 | 8,846 |
Wholly or partially funded defined benefit obligation | 9,687 | 8,146 | |
Unfunded defined benefit obligation | 179 | 165 | |
Pension Plans [member] | Plan assets [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) at end of year | (143) | 408 | |
Defined benefit obligation at beginning of year | 8,719 | 8,990 | |
U.S. plan merger | 43 | ||
Interest cost | 344 | 309 | |
Benefits paid | (456) | (492) | |
Return on plan assets (excluding interest income) | 795 | (323) | |
Employer contributions | 256 | 213 | |
Employee contributions | 17 | 15 | |
Administrative expenses | (5) | (5) | |
Foreign exchange and other | 10 | 12 | |
Defined benefit obligation at end of year | 9,723 | 8,719 | 8,990 |
Actuarial gains (losses) recognized in other comprehensive income for the year | 795 | (323) | |
Pension Plans [member] | Other assets [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) at end of year | 186 | 664 | |
Pension Plans [member] | Other liabilities [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) at end of year | (329) | (256) | |
Other employee future benefit plans [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) at end of year | (1,079) | (960) | (1,303) |
Current service cost | 9 | 26 | 32 |
Past service cost (income) | (277) | ||
Interest cost | 37 | 45 | 47 |
Changes in demographic assumptions | 21 | 30 | |
Changes in financial assumptions | (153) | 72 | |
Plan member experience | 3 | 1 | |
Actuarial gains (losses) recognized in other comprehensive income for the year | (106) | 93 | |
Other employee future benefit plans [member] | Present value of defined benefit obligation [member] | |||
Disclosure of defined benefit plans [line items] | |||
Defined benefit obligation at beginning of year | 1,113 | 1,460 | |
Current service cost | 9 | 26 | |
Past service cost (income) | 0 | (277) | |
Interest cost | 44 | 51 | |
Benefits paid | (53) | (43) | |
Employer contributions | 5 | 5 | |
Changes in demographic assumptions | (22) | (31) | |
Changes in financial assumptions | 161 | (77) | |
Plan member experience | (3) | (4) | |
Foreign exchange and other | 3 | ||
Defined benefit obligation at end of year | 1,254 | 1,113 | 1,460 |
Wholly or partially funded defined benefit obligation | 129 | 116 | |
Unfunded defined benefit obligation | 1,125 | 997 | |
Other employee future benefit plans [member] | Plan assets [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) at end of year | (1,079) | (960) | |
Defined benefit obligation at beginning of year | 153 | 157 | |
Interest cost | 7 | 6 | |
Benefits paid | (53) | (43) | |
Return on plan assets (excluding interest income) | 23 | (10) | |
Employer contributions | 40 | 35 | |
Employee contributions | 5 | 5 | |
Foreign exchange and other | 3 | ||
Defined benefit obligation at end of year | 175 | 153 | $ 157 |
Actuarial gains (losses) recognized in other comprehensive income for the year | 23 | (10) | |
Other employee future benefit plans [member] | Other assets [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) at end of year | 46 | ||
Other employee future benefit plans [member] | Other liabilities [member] | |||
Disclosure of defined benefit plans [line items] | |||
Surplus (deficit) and net defined benefit asset (liability) at end of year | $ (1,125) | $ (960) |
Employee Compensation - Summa_8
Employee Compensation - Summary of Fair Values of Plan Assets Held (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure of fair value of plan assets [line items] | ||
Derivative instruments | $ 8 | $ (13) |
Fair value of plan assets | 8,502 | 7,559 |
Valued using quoted market prices [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Derivative instruments | 1 | |
Fair value of plan assets | 3,505 | 3,441 |
Unquoted [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Derivative instruments | 8 | (14) |
Fair value of plan assets | 4,997 | 4,118 |
Cash and money market funds. | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and money market funds | 162 | 114 |
Cash and money market funds. | Valued using quoted market prices [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and money market funds | 156 | 114 |
Cash and money market funds. | Unquoted [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Cash and money market funds | 6 | |
Canadian federal government [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 58 | 149 |
Canadian federal government [member] | Valued using quoted market prices [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 1 | 108 |
Canadian federal government [member] | Unquoted [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 57 | 41 |
Canadian Provincial And Municipal Governments [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 702 | 528 |
Canadian Provincial And Municipal Governments [member] | Valued using quoted market prices [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 334 | 219 |
Canadian Provincial And Municipal Governments [member] | Unquoted [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 368 | 309 |
US federal Government [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 345 | 297 |
US federal Government [member] | Valued using quoted market prices [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 345 | 297 |
US State Municipal And Agencies Debt [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 12 | |
US State Municipal And Agencies Debt [member] | Unquoted [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 12 | |
Pooled asset funds [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Pooled funds | 4,654 | 4,306 |
Pooled asset funds [member] | Valued using quoted market prices [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Pooled funds | 1,450 | 1,591 |
Pooled asset funds [member] | Unquoted [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Pooled funds | 3,204 | 2,715 |
Corporate debt [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 1,354 | 1,061 |
Corporate debt [member] | Valued using quoted market prices [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 6 | |
Corporate debt [member] | Unquoted [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Debt securities | 1,354 | 1,055 |
Corporate equity [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities | 1,219 | 1,105 |
Corporate equity [member] | Valued using quoted market prices [member] | ||
Disclosure of fair value of plan assets [line items] | ||
Equity securities | $ 1,219 | $ 1,105 |
Employee Compensation - Summa_9
Employee Compensation - Summary of Changes in Number of Key Assumption (Detail) $ in Millions | Oct. 31, 2019CAD ($) |
Pension Plans [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial assumption of discount rates | 3.00% |
Pension Plans [member] | Actuarial assumption of discount rates [member] | Actuarial assumption of discount rates, 1% increase [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible increase in actuarial assumption | $ (1,041) |
Pension Plans [member] | Actuarial assumption of discount rates [member] | Actuarial assumption of discount rates, 1% decrease [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible decrease in actuarial assumption | $ 1,324 |
Pension Plans [member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial assumption of discount rates | 2.10% |
Pension Plans [member] | Actuarial assumption of expected rates of salary increases [member] | Actuarial assumption of expected rate of compensation, 0.25% increase [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible increase in actuarial assumption | $ 51 |
Pension Plans [member] | Actuarial assumption of expected rates of salary increases [member] | Actuarial assumption of expected rate of compensation, 0.25% decrease [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible decrease in actuarial assumption | (49) |
Pension Plans [member] | Actuarial assumption of mortality rates [member] | Actuarial assumption of mortality, 1 year shorter life expectancy [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible increase in actuarial assumption | (185) |
Pension Plans [member] | Actuarial assumption of mortality rates [member] | Actuarial assumption of mortality, 1 year longer life expectancy [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible decrease in actuarial assumption | $ 182 |
Other employee future benefit plans [member] | Actuarial assumption of discount rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial assumption of discount rates | 3.00% |
Other employee future benefit plans [member] | Actuarial assumption of discount rates [member] | Actuarial assumption of discount rates, 1% increase [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible increase in actuarial assumption | $ (122) |
Other employee future benefit plans [member] | Actuarial assumption of discount rates [member] | Actuarial assumption of discount rates, 1% decrease [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible decrease in actuarial assumption | $ 153 |
Other employee future benefit plans [member] | Actuarial assumption of expected rates of salary increases [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial assumption of discount rates | 2.00% |
Other employee future benefit plans [member] | Actuarial assumption of mortality rates [member] | Actuarial assumption of mortality, 1 year shorter life expectancy [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible increase in actuarial assumption | $ (28) |
Other employee future benefit plans [member] | Actuarial assumption of mortality rates [member] | Actuarial assumption of mortality, 1 year longer life expectancy [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible decrease in actuarial assumption | $ 29 |
Other employee future benefit plans [member] | Actuarial assumption of health care cost trend rates [member] | |
Disclosure of defined benefit plans [line items] | |
Actuarial assumption of discount rates | 4.90% |
Other employee future benefit plans [member] | Actuarial assumption of health care cost trend rates [member] | Actuarial assumption of medical cost trend rate, 1% increase [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible increase in actuarial assumption | $ 49 |
Other employee future benefit plans [member] | Actuarial assumption of health care cost trend rates [member] | Actuarial assumption of medical cost trend rate, 1% decrease [member] | |
Disclosure of defined benefit plans [line items] | |
Increase (decrease) in benefit obligation due to reasonably possible decrease in actuarial assumption | $ (51) |
Employee Compensation - Summ_10
Employee Compensation - Summary of Changes in Number of Key Assumption (Parenthetical) (Detail) | Oct. 31, 2040 |
Scenario, Forecast [Member] | Other employee future benefit plans [member] | Actuarial assumption of medical cost trend rates [member] | |
Disclosure of defined benefit plans [line items] | |
Assumed overall health care cost trend rate | 4.10% |
Employee Compensation - Summ_11
Employee Compensation - Summary of Duration of Defined Benefit Obligation (Detail) - yr | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Pension Plans [member] | Canada [member] | ||
Disclosure of defined benefit plans [line items] | ||
Duration of defined benefit obligation | 15.2 | 14 |
Pension Plans [member] | United States [member] | ||
Disclosure of defined benefit plans [line items] | ||
Duration of defined benefit obligation | 7.9 | 7.2 |
Other employee future benefit plans [member] | Canada [member] | ||
Disclosure of defined benefit plans [line items] | ||
Duration of defined benefit obligation | 14.5 | 14.3 |
Employee Compensation - Summ_12
Employee Compensation - Summary of Cash payments in connection with employee future benefit plans (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Pension Plans [member] | |||
Disclosure of defined benefit plans and defined contribution plans [Line Items] | |||
Contributions to defined benefit plans | $ 203 | $ 154 | $ 187 |
Contributions to defined contribution plans | 170 | 153 | 123 |
Benefits paid directly to pensioners | 53 | 59 | 32 |
Cash payments made for employee future benefit plans | 426 | 366 | 342 |
Other employee future benefit plans [member] | |||
Disclosure of defined benefit plans and defined contribution plans [Line Items] | |||
Benefits paid directly to pensioners | 40 | 35 | 40 |
Cash payments made for employee future benefit plans | $ 40 | $ 35 | $ 40 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | ||
Disclosure of Income Tax [Line items] | |||
Deferred income tax assets loss carryforwards | $ 1,568 | [1] | $ 2,039 |
Temporary differences, unused tax losses and unused tax credits for which no deferred tax asset is recognized | 127 | 132 | |
Amount of unrecognized tax loss carryforwards | 3 | 8 | |
Temporary differences associated with repatriation of earnings from investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax liabilities have not been recognised | 15,000 | 13,000 | |
Revaluation of income tax | 483 | ||
Income tax expense | 425 | ||
Income tax charge in Other Compresensive Income and Shareholder's Equity | 58 | ||
2014 taxation years [Member] | |||
Disclosure of Income Tax [Line items] | |||
Additional income tax expense and interest | 250 | ||
2011 - 2013 taxation years [member] | |||
Disclosure of Income Tax [Line items] | |||
Additional income tax expense and interest | 361 | ||
Canada [member] | Tax loss carryforwards [member] | |||
Disclosure of Income Tax [Line items] | |||
Deferred income tax assets loss carryforwards | $ 26 | 42 | |
Deferred income tax assets loss carryforwards expiration period | 2037 | ||
United States [member] | Tax loss carryforwards [member] | |||
Disclosure of Income Tax [Line items] | |||
Deferred income tax assets loss carryforwards | $ 289 | 962 | |
Deferred income tax assets loss carryforwards expiration, start of year | 2020 | ||
Deferred income tax assets loss carryforwards expiration, end of year | 2039 | ||
United Kingdom [member] | Tax loss carryforwards [member] | |||
Disclosure of Income Tax [Line items] | |||
Deferred income tax assets loss carryforwards | $ 19 | $ 17 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Income Taxes - Summary of Provi
Income Taxes - Summary of Provision for Income Taxes (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Disclosure representing major components of tax expense income [line items] | ||||
Current income taxes | $ 1,198 | $ 1,340 | $ 1,159 | |
Adjustments in respect of current tax for prior periods | (14) | 20 | 18 | |
Origination and reversal of temporary differences | 327 | 268 | 171 | |
Effect of changes in tax rates | 3 | 425 | (2) | |
Previously unrecognized tax loss, tax credit or temporary difference for a prior period | (92) | (54) | ||
Provision for income taxes | 1,514 | [1] | 1,961 | 1,292 |
Unrealized gains (losses) on FVOCI debt securities | 140 | (69) | 21 | |
Reclassification to earnings of (gains) on FVOCI debt securities | (26) | (23) | (36) | |
Gains (losses) on derivatives designated as cash flow hedges | 521 | (432) | (322) | |
Reclassification to earnings of losses on derivatives designated as cash flow hedges | 51 | 121 | 21 | |
Hedging of unrealized (gains) losses on translation of net foreign operations | (4) | (56) | 8 | |
Gains (losses) on remeasurement of pension and other employee future benefit plans | (196) | 111 | 157 | |
Gains (Losses) on remeasurement of own credit risk on financial liabilities designated at fair value | 27 | (6) | (53) | |
Unrealized gains on FVOCI equity securities | 1 | |||
Share-based compensation | 10 | (12) | ||
Aggregate provision for income tax in Other Comprehensive Income and Equity | 514 | (344) | (216) | |
Total provision for income taxes | 2,028 | 1,617 | 1,076 | |
Canada [member] | ||||
Disclosure representing major components of tax expense income [line items] | ||||
Federal current income taxes | 791 | 501 | 470 | |
Provincial current income taxes | 465 | 299 | 272 | |
Current income taxes | 1,256 | 800 | 742 | |
Federal Deferred income taxes | (113) | (44) | (2) | |
Provincial deferred income taxes | (66) | (27) | ||
Deferred income taxes | (179) | (71) | (2) | |
Total provision for income taxes | 1,077 | 729 | 740 | |
Foreign countries [member] | ||||
Disclosure representing major components of tax expense income [line items] | ||||
Current income taxes | 308 | 233 | 186 | |
Deferred income taxes | 643 | 655 | 150 | |
Total provision for income taxes | $ 951 | $ 888 | $ 336 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Income Taxes - Summary of Effec
Income Taxes - Summary of Effective Tax Rates (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Reconciliation of average effective tax rate and applicable tax rate [abstract] | ||||
Combined Canadian federal and provincial income taxes at the statutory tax rate | $ 1,934 | $ 1,972 | $ 1,764 | |
Tax-exempt income from securities | (220) | (226) | (409) | |
Foreign operations subject to different tax rates | (158) | (110) | 22 | |
Change in tax rate for deferred income taxes | 3 | 425 | (2) | |
Previously unrecognized tax loss, tax credit or temporary difference for a prior period | (92) | (54) | ||
Income attributable to investments in associates and joint ventures | (37) | (39) | (103) | |
Adjustments in respect of current tax for prior periods | (14) | 20 | 18 | |
Other | 6 | 11 | 56 | |
Provision for income taxes in the Consolidated Statement of Income and effective tax rate | $ 1,514 | [1] | $ 1,961 | $ 1,292 |
Combined Canadian federal and provincial income taxes at the statutory tax rate | 26.60% | 26.60% | 26.60% | |
Tax-exempt income from securities | (3.00%) | (3.00%) | (6.20%) | |
Foreign operations subject to different tax rates | (2.20%) | (1.50%) | 0.30% | |
Change in tax rate for deferred income taxes | 5.70% | |||
Previously unrecognized tax loss, tax credit or temporary difference for a prior period | (1.20%) | (0.80%) | ||
Income attributable to investments in associates and joint ventures | (0.50%) | (0.50%) | (1.50%) | |
Adjustments in respect of current tax for prior periods | (0.20%) | 0.30% | 0.20% | |
Other | 0.10% | 0.10% | 0.90% | |
Provision for income taxes in the Consolidated Statement of Income and effective tax rate | 20.80% | 26.50% | 19.50% | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Income Taxes - Summary of Compo
Income Taxes - Summary of Components of Deferred Income Tax Balances (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | $ 1,965 | $ 2,606 |
Benefit (expense) to income statement | (601) | |
Benefit (expense) to equity | 17 | |
Translation and other | (57) | |
Ending balance of net asset | 1,965 | |
IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 1,965 | |
Benefit (expense) to income statement | (330) | |
Benefit (expense) to equity | (134) | |
Translation and other | 7 | |
Ending balance of net asset | 1,508 | 1,965 |
Allowance for credit losses [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 484 | 684 |
Benefit (expense) to income statement | (150) | |
Translation and other | (50) | |
Ending balance of net asset | 484 | |
Allowance for credit losses [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 484 | |
Benefit (expense) to income statement | 23 | |
Translation and other | 4 | |
Ending balance of net asset | 511 | 484 |
Employee future benefits [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 282 | 416 |
Benefit (expense) to income statement | (111) | |
Benefit (expense) to equity | (23) | |
Ending balance of net asset | 282 | |
Employee future benefits [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 282 | |
Benefit (expense) to income statement | 12 | |
Benefit (expense) to equity | 31 | |
Ending balance of net asset | 325 | 282 |
Deferred compensation benefits [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 494 | 545 |
Benefit (expense) to income statement | (50) | |
Translation and other | (1) | |
Ending balance of net asset | 494 | |
Deferred compensation benefits [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 494 | |
Benefit (expense) to income statement | (12) | |
Translation and other | 1 | |
Ending balance of net asset | 483 | 494 |
Other comprehensive income [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 195 | 50 |
Benefit (expense) to equity | 138 | |
Translation and other | 7 | |
Ending balance of net asset | 195 | |
Other comprehensive income [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 195 | |
Benefit (expense) to equity | (331) | |
Translation and other | (7) | |
Ending balance of net asset | (143) | 195 |
Tax loss carryforwards [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 606 | 1,233 |
Benefit (expense) to income statement | (628) | |
Translation and other | 1 | |
Ending balance of net asset | 606 | |
Tax loss carryforwards [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 606 | |
Benefit (expense) to income statement | (462) | |
Translation and other | 1 | |
Ending balance of net asset | 145 | 606 |
Tax credits [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 415 | 454 |
Benefit (expense) to income statement | (39) | |
Ending balance of net asset | 415 | |
Tax credits [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 415 | |
Benefit (expense) to income statement | (228) | |
Translation and other | 2 | |
Ending balance of net asset | 189 | 415 |
Premises and equipment [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | (515) | (664) |
Benefit (expense) to income statement | 148 | |
Translation and other | 1 | |
Ending balance of net asset | (515) | |
Premises and equipment [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | (515) | |
Benefit (expense) to income statement | 234 | |
Translation and other | (1) | |
Ending balance of net asset | (282) | (515) |
Pension benefits [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | (121) | (52) |
Benefit (expense) to income statement | 19 | |
Benefit (expense) to equity | (88) | |
Ending balance of net asset | (121) | |
Pension benefits [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | (121) | |
Benefit (expense) to income statement | (18) | |
Benefit (expense) to equity | 166 | |
Ending balance of net asset | 27 | (121) |
Goodwill and intangible assets [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | (201) | (261) |
Benefit (expense) to income statement | 60 | |
Ending balance of net asset | (201) | |
Goodwill and intangible assets [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | (201) | |
Benefit (expense) to income statement | (14) | |
Translation and other | (2) | |
Ending balance of net asset | (217) | (201) |
Securities [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 38 | 21 |
Benefit (expense) to income statement | 17 | |
Ending balance of net asset | 38 | |
Securities [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 38 | |
Benefit (expense) to income statement | 12 | |
Ending balance of net asset | 50 | 38 |
Deferred Tax Asset Liability Other [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 288 | 180 |
Benefit (expense) to income statement | 133 | |
Benefit (expense) to equity | (10) | |
Translation and other | (15) | |
Ending balance of net asset | 288 | |
Deferred Tax Asset Liability Other [member] | IFRS9 [member] | ||
Disclosure of components of deferred tax assets and liabilities [line items] | ||
Beginning balance of net asset | 288 | |
Benefit (expense) to income statement | 123 | |
Translation and other | 9 | |
Ending balance of net asset | $ 420 | $ 288 |
Income Taxes - Summary of Com_2
Income Taxes - Summary of Components of Deferred Income Tax Balances (Parenthetical) (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | [1] | Oct. 31, 2018 |
Reconciliation of changes in deferred tax liability (asset) [abstract] | |||
Deferred tax assets | $ 1,568 | $ 2,039 | |
Deferred tax liabilities | $ 60 | $ 74 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Earnings Per Share - Summary of
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Detail) - CAD ($) $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Basic Earnings Per Common Share | ||||
Net income attributable to equity holders of the bank | $ 5,758 | [1] | $ 5,453 | $ 5,337 |
Dividends on preferred shares and distributions on other equity instruments | (211) | (184) | (184) | |
Net income available to common shareholders | $ 5,547 | $ 5,269 | $ 5,153 | |
Weighted-average number of common shares outstanding | 638,881 | 642,930 | 649,650 | |
Basic earnings per common share | $ 8.68 | [1] | $ 8.19 | $ 7.93 |
Diluted Earnings Per Common Share | ||||
Net income available to common shareholders adjusted for impact of dilutive instruments | $ 5,547 | $ 5,269 | $ 5,153 | |
Weighted-average number of common shares outstanding | 638,881 | 642,930 | 649,650 | |
Effect of dilutive instruments | ||||
Stock options potentially exercisable | 5,326 | 5,876 | 6,859 | |
Common shares potentially repurchased | (3,847) | (3,893) | (4,548) | |
Weighted-average number of diluted common shares outstanding | 640,360 | 644,913 | 651,961 | |
Diluted earnings per common share | $ 8.66 | [1] | $ 8.17 | $ 7.90 |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Earnings Per Share - Summary _2
Earnings Per Share - Summary of Basic and Diluted Earnings Per Share (Parenthetical) (Detail) - CAD ($) | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Earnings per share [line items] | |||
Outstanding options excluded from calculation of diluted earnings per share | 1,177,152 | 1,101,938 | 1,330,564 |
Dilutive potential shares from stock options [Member] | |||
Earnings per share [line items] | |||
Exercise price of outstanding share options | $ 101.83 | $ 127.45 | $ 182.70 |
Commitments, Guarantees, Pled_3
Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities - Summary of Maximum Amount Payable Under Various Commitments (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Maximum potential amount of future payments | $ 198,101 | $ 177,660 |
Financial Guarantees [Member] | Standby letters of credit [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Maximum potential amount of future payments | 21,395 | 18,458 |
Financial Guarantees [Member] | Credit default swaps [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Maximum potential amount of future payments | 2,068 | 443 |
Other Credit Instruments [Member] | Backstop liquidity facilities [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Maximum potential amount of future payments | 5,550 | 5,627 |
Other Credit Instruments [Member] | Securities lending [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Maximum potential amount of future payments | 4,102 | 4,939 |
Other Credit Instruments [Member] | Documentary and commercial letters of credit [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Maximum potential amount of future payments | 1,272 | 1,263 |
Other Credit Instruments [Member] | Commitments to extend credit [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Maximum potential amount of future payments | 158,533 | 137,995 |
Other Credit Instruments [Member] | Other commitments [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Maximum potential amount of future payments | $ 5,181 | $ 8,935 |
Commitments, Guarantees, Pled_4
Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities - Summary of Maximum Amount Payable Under Various Commitments (Parenthetical) (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of commitments guarantees pledged assets provisions and contingent liabilities [Abstract] | ||
Fair value of derivative liabilities | $ 43 | $ 8 |
Commitments, Guarantees, Pled_5
Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities - Summary of Pledged Assets collateral and Activities (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 |
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | $ 211,209 | $ 190,995 |
Central counterparties, payment systems and depositories [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 2,098 | 2,403 |
Foreign governments and central banks [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 3 | 3 |
Obligations related to securities sold under repurchase agreements [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 73,696 | 54,606 |
Securities borrowing and lending [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 48,892 | 50,388 |
Derivative transactions [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 9,614 | 6,120 |
Securitization [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 30,120 | 28,710 |
Covered bonds [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 27,208 | 26,721 |
Others [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 19,111 | 21,519 |
Bank of canada [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 467 | 525 |
Bank assets [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 211,209 | 190,995 |
Bank assets [member] | Cashed securities, government issued or guaranteed [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 5,633 | 7,784 |
Bank assets [member] | Cashed securities,issued or guaranteed by a Canadian province municipality or school corporation [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 5,465 | 7,143 |
Bank assets [member] | Other assets [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | 75,076 | 60,812 |
Bank assets [member] | Mortgages, securities borrowed or purchased under resale agreements and other [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Pledged assets and collateral | $ 125,035 | $ 115,256 |
Commitments, Guarantees, Pled_6
Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities - Additional Information (Detail) $ in Millions | 12 Months Ended | |
Oct. 31, 2019CAD ($)Branch | Oct. 31, 2018CAD ($) | |
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Fair value of counterparty collateral permitted to sell or repledge | $ 163,929 | $ 123,782 |
Fair value of collateral sold or repledged | 101,665 | 82,392 |
Minimum lease payments receivable under noncancellable operating lease | 3,800 | |
Minimum lease payments receivable under noncancellable operating lease | 389 | |
Minimum lease payments receivable under noncancellable operating lease | 361 | |
Minimum lease payments receivable under noncancellable operating lease | 337 | |
Minimum lease payments receivable under noncancellable operating lease | 305 | |
Minimum lease payments receivable under noncancellable operating lease | 289 | |
Minimum lease payments receivable under noncancellable operating lease | $ 2,119 | |
Number of leased branch locations | Branch | 1,165 | |
ongoing bank- wide [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Restructuring charges | $ 603 | $ 176 |
ongoing bank- wide [member] | severance costs [member] | ||
Disclosure commitments guarantees pledged assets provisions and contingent liabilities [line items] | ||
Restructuring charges | $ 484 |
Commitments, Guarantees, Pled_7
Commitments, Guarantees, Pledged Assets, Provisions and Contingent Liabilities - Summary of Changes In Provision Balance (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure Of Changes In Provisions [Abstract] | ||
Balance at beginning of year | $ 284 | $ 170 |
Additional provisions/increase in provisions | 666 | 375 |
Provisions utilized | (251) | (250) |
Amounts reversed | (32) | (11) |
Foreign exchange and other | 13 | |
Balance at end of year | $ 680 | $ 284 |
Operating and Geographic Segm_3
Operating and Geographic Segmentation - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019CAD ($)BusinessSegments | Oct. 31, 2018CAD ($) | Oct. 31, 2017CAD ($) | |
Disclosure of operating segments [line items] | |||
Number of operating groups | Business | 3 | ||
Taxable equivalent basis adjustment amount | $ | $ 296 | $ 313 | $ 567 |
Personal and commercial banking [member] | |||
Disclosure of operating segments [line items] | |||
Number operating segments | Segments | 2 |
Operating and Geographic Segm_4
Operating and Geographic Segmentation - Summary of Average Assets, Grouped by Operating Segment (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Disclosure of operating segments [line items] | ||||
Net interest income | $ 12,888 | $ 11,438 | $ 11,275 | |
Non-interest revenue | 12,595 | 11,467 | 10,832 | |
Total Revenue | 25,483 | [1] | 22,905 | 22,107 |
Provision for (recovery of) credit losses | 872 | [1] | 662 | 746 |
Insurance claims, commissions and changes in policy benefit liabilities | 2,709 | [1] | 1,352 | 1,538 |
Depreciation and amortization | 1,205 | 1,127 | 1,103 | |
Non-interest expense | 13,425 | 12,350 | 12,089 | |
Income Before Provision for Income Taxes | 7,272 | [1] | 7,414 | 6,631 |
Provision for (recovery of) income taxes | 1,514 | [1] | 1,961 | 1,292 |
Reported net income (loss) | 5,758 | [1] | 5,453 | 5,339 |
Non-controlling interest in subsidiaries | 2 | |||
Net Income (loss) attributable to bank shareholders | 5,758 | [1] | 5,453 | 5,337 |
Average Assets | 833,252 | 754,295 | 722,626 | |
Impaired Loans [Member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 751 | 700 | ||
Performing loans [member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 121 | (38) | ||
Canadian P&C [member] | ||||
Disclosure of operating segments [line items] | ||||
Net interest income | 5,878 | 5,541 | 5,261 | |
Non-interest revenue | 2,128 | 2,069 | 2,079 | |
Total Revenue | 8,006 | 7,610 | 7,340 | |
Provision for (recovery of) credit losses | 607 | 469 | 483 | |
Insurance claims, commissions and changes in policy benefit liabilities | 0 | 0 | 0 | |
Depreciation and amortization | 338 | 317 | 308 | |
Non-interest expense | 3,516 | 3,393 | 3,226 | |
Income Before Provision for Income Taxes | 3,545 | 3,431 | 3,323 | |
Provision for (recovery of) income taxes | 919 | 882 | 823 | |
Reported net income (loss) | 2,626 | 2,549 | 2,500 | |
Net Income (loss) attributable to bank shareholders | 2,500 | |||
Average Assets | 237,995 | 224,554 | 217,685 | |
Canadian P&C [member] | Impaired Loans [Member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 544 | 466 | ||
Canadian P&C [member] | Performing loans [member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 63 | 3 | ||
US P&C [member] | ||||
Disclosure of operating segments [line items] | ||||
Net interest income | 4,218 | 3,843 | 3,551 | |
Non-interest revenue | 1,162 | 1,096 | 1,005 | |
Total Revenue | 5,380 | 4,939 | 4,556 | |
Provision for (recovery of) credit losses | 197 | 220 | 289 | |
Insurance claims, commissions and changes in policy benefit liabilities | 0 | 0 | 0 | |
Depreciation and amortization | 456 | 454 | 433 | |
Non-interest expense | 2,683 | 2,514 | 2,458 | |
Income Before Provision for Income Taxes | 2,044 | 1,751 | 1,376 | |
Provision for (recovery of) income taxes | 433 | 357 | 358 | |
Reported net income (loss) | 1,611 | 1,394 | 1,018 | |
Net Income (loss) attributable to bank shareholders | 1,018 | |||
Average Assets | 126,584 | 110,351 | 104,209 | |
US P&C [member] | Impaired Loans [Member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 160 | 258 | ||
US P&C [member] | Performing loans [member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 37 | (38) | ||
Wealth management [member] | ||||
Disclosure of operating segments [line items] | ||||
Net interest income | 935 | 826 | 722 | |
Non-interest revenue | 6,727 | 5,475 | 5,496 | |
Total Revenue | 7,662 | 6,301 | 6,218 | |
Provision for (recovery of) credit losses | 0 | 6 | 8 | |
Insurance claims, commissions and changes in policy benefit liabilities | 2,709 | 1,352 | 1,538 | |
Depreciation and amortization | 262 | 231 | 242 | |
Non-interest expense | 3,260 | 3,284 | 3,113 | |
Income Before Provision for Income Taxes | 1,431 | 1,428 | 1,317 | |
Provision for (recovery of) income taxes | 371 | 356 | 350 | |
Reported net income (loss) | 1,060 | 1,072 | 967 | |
Non-controlling interest in subsidiaries | 2 | |||
Net Income (loss) attributable to bank shareholders | 965 | |||
Average Assets | 40,951 | 35,913 | 32,562 | |
Wealth management [member] | Impaired Loans [Member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 2 | 6 | ||
Wealth management [member] | Performing loans [member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | (2) | |||
BMO capital markets [member] | ||||
Disclosure of operating segments [line items] | ||||
Net interest income | 2,394 | 1,784 | 2,501 | |
Non-interest revenue | 2,340 | 2,579 | 2,075 | |
Total Revenue | 4,734 | 4,363 | 4,576 | |
Provision for (recovery of) credit losses | 80 | (18) | 44 | |
Insurance claims, commissions and changes in policy benefit liabilities | 0 | 0 | 0 | |
Depreciation and amortization | 149 | 125 | 120 | |
Non-interest expense | 3,112 | 2,734 | 2,666 | |
Income Before Provision for Income Taxes | 1,393 | 1,522 | 1,746 | |
Provision for (recovery of) income taxes | 307 | 366 | 471 | |
Reported net income (loss) | 1,086 | 1,156 | 1,275 | |
Net Income (loss) attributable to bank shareholders | 1,275 | |||
Average Assets | 342,347 | 307,087 | 302,518 | |
BMO capital markets [member] | Impaired Loans [Member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 52 | (17) | ||
BMO capital markets [member] | Performing loans [member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | 28 | (1) | ||
Corporate services [member] | ||||
Disclosure of operating segments [line items] | ||||
Net interest income | (537) | (556) | (760) | |
Non-interest revenue | 238 | 248 | 177 | |
Total Revenue | (299) | (308) | (583) | |
Provision for (recovery of) credit losses | (12) | (15) | (78) | |
Insurance claims, commissions and changes in policy benefit liabilities | 0 | 0 | 0 | |
Depreciation and amortization | 0 | 0 | 0 | |
Non-interest expense | 854 | 425 | 626 | |
Income Before Provision for Income Taxes | (1,141) | (718) | (1,131) | |
Provision for (recovery of) income taxes | (516) | 0 | (710) | |
Reported net income (loss) | (625) | (718) | (421) | |
Net Income (loss) attributable to bank shareholders | (421) | |||
Average Assets | 85,375 | 76,390 | $ 65,652 | |
Corporate services [member] | Impaired Loans [Member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | (7) | (13) | ||
Corporate services [member] | Performing loans [member] | ||||
Disclosure of operating segments [line items] | ||||
Provision for (recovery of) credit losses | $ (5) | $ (2) | ||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Operating and Geographic Segm_5
Operating and Geographic Segmentation - Summary of Average Assets, Grouped by Geographic Region (Detail) - CAD ($) $ in Millions | 12 Months Ended | |||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | ||
Disclosure of geographical areas [line items] | ||||
Total Revenue | $ 25,483 | [1] | $ 22,905 | $ 22,107 |
Income before taxes | 7,272 | [1] | 7,414 | 6,631 |
Reported net income | 5,758 | [1] | 5,453 | 5,339 |
Average Assets | 833,252 | 754,295 | 722,626 | |
Canada [member] | ||||
Disclosure of geographical areas [line items] | ||||
Total Revenue | 15,134 | 13,632 | 13,365 | |
Income before taxes | 4,324 | 4,840 | 4,589 | |
Reported net income | 3,391 | 3,797 | 3,816 | |
Average Assets | 469,032 | 441,376 | 430,570 | |
United States [member] | ||||
Disclosure of geographical areas [line items] | ||||
Total Revenue | 8,282 | 7,273 | 7,015 | |
Income before taxes | 2,367 | 1,871 | 1,580 | |
Reported net income | 1,903 | 1,100 | 1,200 | |
Average Assets | 316,983 | 277,764 | 264,473 | |
Other international non CAN non US [member] | ||||
Disclosure of geographical areas [line items] | ||||
Total Revenue | 2,067 | 2,000 | 1,727 | |
Income before taxes | 581 | 703 | 462 | |
Reported net income | 464 | 556 | 323 | |
Average Assets | $ 47,237 | $ 35,155 | $ 27,583 | |
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Significant Subsidiaries - Summ
Significant Subsidiaries - Summary of Significant Operating Subsidiaries (Detail) $ in Millions | 12 Months Ended |
Oct. 31, 2019CAD ($) | |
Bank of Montreal Capital Markets (Holdings) Limited and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | Bank of Montreal Capital Markets (Holdings) Limited and subsidiaries |
Head or principal office | London, England |
Book value of shares owned by the bank | $ 364 |
BMO Capital Markets Limited [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Capital Markets Limited |
Head or principal office | London, England |
Pyrford International Limited [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | Pyrford International Limited |
Head or principal office | London, England |
Bank of Montreal (China) Co. Ltd. [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | Bank of Montreal (China) Co. Ltd. |
Head or principal office | Beijing, China |
Book value of shares owned by the bank | $ 449 |
Bank Of Montreal Europe plc [Member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | Bank of Montreal Europe plc |
Head or principal office | Dublin, Ireland |
Book value of shares owned by the bank | $ 1,042 |
Bank of Montreal Holding Inc. and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | Bank of Montreal Holding Inc. and subsidiaries |
Head or principal office | Toronto, Canada |
Book value of shares owned by the bank | $ 31,175 |
Bank of Montreal Mortgage Corporation [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | Bank of Montreal Mortgage Corporation |
Head or principal office | Calgary, Canada |
BMO Mortgage Corp. [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Mortgage Corp. |
Head or principal office | Vancouver, Canada |
BMO Investments Limited [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Investments Limited |
Head or principal office | Hamilton, Bermuda |
BMO Reinsurance Limited [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Reinsurance Limited |
Head or principal office | St. Michaels, Barbados |
BMO Nesbitt Burns Holdings Corporation [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Nesbitt Burns Holdings Corporation |
Head or principal office | Toronto, Canada |
BMO Nesbitt Burns Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Nesbitt Burns Inc. |
Head or principal office | Toronto, Canada |
BMO Investments Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Investments Inc. |
Head or principal office | Toronto, Canada |
BMO InvestorLine Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO InvestorLine Inc. |
Head or principal office | Toronto, Canada |
BMO Financial Corp. and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Financial Corp. and subsidiaries |
Head or principal office | Chicago, United States |
Book value of shares owned by the bank | $ 23,396 |
BMO Asset Management Corp. and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Asset Management Corp. and subsidiaries |
Head or principal office | Chicago, United States |
BMO Capital Markets Corp. [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Capital Markets Corp. |
Head or principal office | New York, United States |
BMO Family Office LLC [Member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Family Office, LLC |
Head or principal office | Palo Alto, United States |
BMO Harris Bank National Association and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Harris Bank National Association and subsidiaries |
Head or principal office | Chicago, United States |
BMO Harris Investment Company LLC [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Harris Investment Company LLC |
Head or principal office | Las Vegas, United States |
BMO Harris Financial Advisors, Inc. [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Harris Financial Advisors, Inc. |
Head or principal office | Chicago, United States |
BMO Harris Financing, Inc. and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Harris Financing, Inc. and subsidiaries |
Head or principal office | Chicago, United States |
BMO Global Asset Management (Europe) Limited and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Global Asset Management (Europe) Limited and subsidiaries |
Head or principal office | London, England |
Book value of shares owned by the bank | $ 677 |
BMO Asset Management (Holdings) plc and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Asset Management (Holdings) plc and subsidiaries |
Head or principal office | London, England |
BMO Life Insurance Company and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Life Insurance Company and subsidiaries |
Head or principal office | Toronto, Canada |
Book value of shares owned by the bank | $ 1,285 |
BMO Life Holdings (Canada), ULC [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Life Holdings (Canada), ULC |
Head or principal office | Halifax, Canada |
BMO Life Assurance Company [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Life Assurance Company |
Head or principal office | Toronto, Canada |
BMO Trust Company [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Trust Company |
Head or principal office | Toronto, Canada |
Book value of shares owned by the bank | $ 774 |
BMO Trustee Asia Limited [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Trustee Asia Limited |
Head or principal office | Hong Kong, China |
Book value of shares owned by the bank | $ 2 |
LGM (Bermuda) Limited and subsidiaries [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | LGM (Bermuda) Limited and subsidiaries |
Head or principal office | Hamilton, Bermuda |
Book value of shares owned by the bank | $ 154 |
BMO Global Asset Management (Asia) Limited [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | BMO Global Asset Management (Asia) Limited |
Head or principal office | Hong Kong, China |
LGM Investments Limited [member] | |
Disclosure of subsidiaries [line items] | |
Significant subsidiaries | LGM Investments Limited |
Head or principal office | London, England |
Significant Subsidiaries - Su_2
Significant Subsidiaries - Summary of Significant Operating Subsidiaries (Parenthetical) (Detail) | 12 Months Ended |
Oct. 31, 2019 | |
Disclosure of subsidiaries [abstract] | |
Voting rights held in subsidiaries | 100.00% |
Related Party Transactions - Su
Related Party Transactions - Summary of Compensation of Key Management Personnel (Detail) - CAD ($) $ in Millions | 12 Months Ended | ||
Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 | |
Disclosure of amounts incurred by entity for provision of key management personnel services provided by separate management entities [abstract] | |||
Base salary and incentives | $ 22 | $ 21 | $ 23 |
Post-employment benefits | 2 | 2 | 1 |
Share-based payments | 43 | 31 | 38 |
Total key management personnel compensation | $ 67 | $ 54 | $ 62 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Provision for credit losses | $ 0 | $ 0 |
Key management personnel directors and their close family members [member] | ||
Disclosure of transactions between related parties [line items] | ||
Loans to related party | $ 21 | $ 16 |
Related Party Transactions - _2
Related Party Transactions - Summary of Carrying amount in Joint Venture and Asoociated Companies (Detail) - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Joint ventures where entity is venturer [member] | ||
Disclosure of associates [line items] | ||
Carrying amount | $ 343 | $ 231 |
Share of net income | 99 | 107 |
Associates [member] | ||
Disclosure of associates [line items] | ||
Carrying amount | 501 | 471 |
Share of net income | $ 52 | $ 60 |
Related Party Transactions - _3
Related Party Transactions - Summary of Transaction With Joint Ventures and Associates (Detail) - Associates and joint ventures [member] - CAD ($) $ in Millions | 12 Months Ended | |
Oct. 31, 2019 | Oct. 31, 2018 | |
Disclosure of transactions between related parties [line items] | ||
Loans | $ 169 | $ 195 |
Deposits | 106 | 114 |
Fees paid for services received | 69 | 71 |
Guarantees and commitments | $ 76 | $ 65 |
Transition to IFRS 9 - Summary
Transition to IFRS 9 - Summary of Pre-transition IAS 39 and Corresponding IFRS 9 classification and measurement categories, and reconciles Carrying Amounts for Loans, Securities and Other Financial Assets (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | Oct. 31, 2018 | Nov. 01, 2017 | Oct. 31, 2017 | |
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | $ 189,438 | [1] | $ 180,935 | ||
Consumer instalment and other | 67,736 | [1] | 63,225 | ||
Credit cards | 8,859 | [1] | 8,329 | ||
Business and government | 227,609 | [1] | 194,456 | ||
Total Loans | 427,944 | [1] | 385,630 | ||
Allowance for credit losses | (1,850) | [1] | (1,639) | ||
Net amount of loans | 426,094 | [1] | 383,991 | ||
Remaining financial assets | 75,869 | [1] | 72,869 | ||
Total after-tax Accumulated Other Comprehensive Income | 3,729 | [1] | 2,302 | ||
Total after-tax Retained Earnings | 28,725 | [1] | 25,850 | ||
Total after-tax Equity | 51,076 | [1] | 45,721 | $ 44,345 | |
Financial assets at fair value through other comprehensive income, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Business and government | 22 | ||||
Financial assets at fair value through profit or loss [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Business and government | $ 2,156 | $ 1,450 | |||
IAS 39 [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | $ 163,198 | ||||
Total Loans | 360,340 | ||||
Allowance for credit losses | (1,833) | ||||
Net amount of loans | 358,507 | ||||
Remaining financial assets | 127,706 | ||||
Allowance for credit losses on off-balancesheet exposures | 163 | ||||
Total after-tax Accumulated Other Comprehensive Income | 3,066 | ||||
Total after-tax Retained Earnings | 23,709 | ||||
Total after-tax Equity | 44,354 | ||||
IAS 39 [member] | Trading securities [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 99,069 | ||||
IAS 39 [member] | Financial assets available-for-sale, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 54,075 | ||||
IAS 39 [member] | Held-to-maturity investments, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 9,094 | ||||
IAS 39 [member] | Other measurement category [Member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 960 | ||||
IAS 39 [member] | Financial assets at amortised cost, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Residential mortgages | 115,258 | ||||
Consumer instalment and other | 61,944 | ||||
Credit cards | 8,071 | ||||
Business and government | 175,067 | ||||
IFRS9 [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 163,196 | ||||
Total Loans | 360,340 | ||||
Allowance for credit losses | (1,679) | ||||
Net amount of loans | 358,661 | ||||
Remaining financial assets | 127,700 | ||||
Allowance for credit losses on off-balancesheet exposures | 239 | ||||
Total after-tax Accumulated Other Comprehensive Income | 3,011 | ||||
Total after-tax Retained Earnings | 23,808 | ||||
Total after-tax Equity | 44,398 | ||||
IFRS9 [member] | Trading securities [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 90,535 | ||||
IFRS9 [member] | Fair value through profit or loss category one [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 8,534 | ||||
IFRS9 [member] | Financial assets at fair value through other comprehensive income, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 51,909 | ||||
IFRS9 [member] | Fair value through profit or loss category two [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 2,081 | ||||
IFRS9 [member] | Amortized cost [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 85 | ||||
IFRS9 [member] | Held-to-maturity investments, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 9,092 | ||||
IFRS9 [member] | Other measurement category [Member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 627 | ||||
IFRS9 [member] | Fair value through profit or loss category three [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 333 | ||||
IFRS9 [member] | Financial assets at amortised cost, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 9,177 | ||||
Residential mortgages | 115,258 | ||||
Consumer instalment and other | 61,944 | ||||
Credit cards | 8,071 | ||||
Business and government | 172,695 | ||||
IFRS9 [member] | Financial assets at fair value through profit or loss [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 10,948 | ||||
Business and government | 2,372 | ||||
Reclassification [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Total after-tax Accumulated Other Comprehensive Income | (55) | ||||
Total after-tax Retained Earnings | 55 | ||||
Reclassification [member] | Trading securities [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | (8,534) | ||||
Reclassification [member] | Fair value through profit or loss category one [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 8,534 | ||||
Reclassification [member] | Financial assets available-for-sale, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | (54,075) | ||||
Reclassification [member] | Financial assets at fair value through other comprehensive income, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 51,909 | ||||
Reclassification [member] | Fair value through profit or loss category two [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 2,081 | ||||
Reclassification [member] | Amortized cost [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 85 | ||||
Reclassification [member] | Other measurement category [Member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | (333) | ||||
Reclassification [member] | Fair value through profit or loss category three [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | 333 | ||||
Reclassification [member] | Financial assets at amortised cost, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Business and government | (2,372) | ||||
Reclassification [member] | Financial assets at fair value through profit or loss [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Business and government | 2,372 | ||||
Remeasurement [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | (2) | ||||
Allowance for credit losses | 154 | ||||
Net amount of loans | 154 | ||||
Remaining financial assets | (6) | ||||
Allowance for credit losses on off-balancesheet exposures | 76 | ||||
Total pre-tax impact of IFRS 9 adoption | 70 | ||||
Total after-tax Retained Earnings | 44 | ||||
Total after-tax Equity | 44 | ||||
Remeasurement [member] | Held-to-maturity investments, category [member] | |||||
Disclosure of financial assets to which overlay approach is applied [line items] | |||||
Securities | $ (2) | ||||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Transition to IFRS 9 - Summar_2
Transition to IFRS 9 - Summary of Pre-transition IAS 39 and Corresponding IFRS 9 classification and measurement categories, and reconciles Carrying Amounts for Loans, Securities and Other Financial Assets (Parenthetical) (Detail) $ in Millions | Nov. 01, 2017CAD ($) |
Reclassification [member] | |
Disclosure of financial assets to which overlay approach is applied [line items] | |
Pre tax impact on retained earnings | $ 105 |
Remeasurement [member] | |
Disclosure of financial assets to which overlay approach is applied [line items] | |
Pre tax impact on retained earnings | $ 70 |
Transition to IFRS 9 - Summar_3
Transition to IFRS 9 - Summary of Classification of Securities (Detail) - CAD ($) $ in Millions | Oct. 31, 2019 | [1] | Oct. 31, 2018 | Nov. 01, 2017 |
Disclosure of financial assets [line items] | ||||
Securities | $ 189,438 | $ 180,935 | ||
IFRS9 [member] | ||||
Disclosure of financial assets [line items] | ||||
Securities | $ 163,196 | |||
IFRS9 [member] | Trading securities [member] | ||||
Disclosure of financial assets [line items] | ||||
Securities | 90,535 | |||
IFRS9 [member] | Financial assets at fair value through profit or loss [member] | ||||
Disclosure of financial assets [line items] | ||||
Securities | 10,948 | |||
IFRS9 [member] | Financial assets at fair value through other comprehensive income, category [member] | ||||
Disclosure of financial assets [line items] | ||||
Securities | 51,909 | |||
IFRS9 [member] | Financial assets at amortised cost, category [member] | ||||
Disclosure of financial assets [line items] | ||||
Securities | 9,177 | |||
IFRS9 [member] | Other measurement category [Member] | ||||
Disclosure of financial assets [line items] | ||||
Securities | $ 627 | |||
[1] | Certain comparative figures have been reclassified to conform with the current year’s presentation and for changes in accounting policy (Note 1). |
Transition to IFRS 9 - Schedule
Transition to IFRS 9 - Schedule of Impact on Transition to IFRS 9 on Allowance for Credit Loss (Detail) - CAD ($) $ in Millions | Nov. 01, 2017 | Oct. 31, 2019 | Oct. 31, 2018 | Oct. 31, 2017 |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | $ 2,094 | $ 1,870 | ||
IAS 39 [member] | Collective Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | $ 1,576 | |||
IAS 39 [member] | Specific Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 420 | |||
IAS 39 [member] | Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 1,996 | |||
IAS 39 [member] | Residential mortgages [member] | Collective Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 69 | |||
IAS 39 [member] | Residential mortgages [member] | Specific Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 24 | |||
IAS 39 [member] | Residential mortgages [member] | Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 93 | |||
IAS 39 [member] | Consumer installment and other personal [member] | Collective Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 343 | |||
IAS 39 [member] | Consumer installment and other personal [member] | Specific Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 136 | |||
IAS 39 [member] | Consumer installment and other personal [member] | Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 479 | |||
IAS 39 [member] | Credit Card [Member] | Collective Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 243 | |||
IAS 39 [member] | Credit Card [Member] | Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 243 | |||
IAS 39 [member] | Business and government loans [member] | Collective Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 785 | |||
IAS 39 [member] | Business and government loans [member] | Specific Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 233 | |||
IAS 39 [member] | Business and government loans [member] | Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 1,018 | |||
IAS 39 [member] | Allowance for credit losses related to loans [member] | Collective Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 1,440 | |||
IAS 39 [member] | Allowance for credit losses related to loans [member] | Specific Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 393 | |||
IAS 39 [member] | Allowance for credit losses related to loans [member] | Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 1,833 | |||
IAS 39 [member] | Allowance for off balance sheet positions [member] | Collective Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 136 | |||
IAS 39 [member] | Allowance for off balance sheet positions [member] | Specific Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 27 | |||
IAS 39 [member] | Allowance for off balance sheet positions [member] | Allowance [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 163 | |||
Remeasurement [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Remeasurement of allowance for credit losses | (70) | |||
Remeasurement [member] | Residential mortgages [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Remeasurement of allowance for credit losses | (20) | |||
Remeasurement [member] | Consumer installment and other personal [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Remeasurement of allowance for credit losses | 71 | |||
Remeasurement [member] | Credit Card [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Remeasurement of allowance for credit losses | 41 | |||
Remeasurement [member] | Business and government loans [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Remeasurement of allowance for credit losses | (246) | |||
Remeasurement [member] | Allowance for credit losses related to loans [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Remeasurement of allowance for credit losses | (154) | |||
Remeasurement [member] | Allowance for remaining financial assets [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Remeasurement of allowance for credit losses | 8 | |||
Remeasurement [member] | Allowance for off balance sheet positions [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Remeasurement of allowance for credit losses | 76 | |||
IFRS9 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 1,926 | 2,094 | 1,870 | |
IFRS9 [member] | Stage 1 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 450 | |||
IFRS9 [member] | Stage 2 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 1,056 | |||
IFRS9 [member] | Stage 3 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 420 | |||
IFRS9 [member] | Residential mortgages [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 73 | 86 | 102 | $ 99 |
Remeasurement of allowance for credit losses | (6) | (24) | ||
IFRS9 [member] | Residential mortgages [member] | Stage 1 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 16 | |||
IFRS9 [member] | Residential mortgages [member] | Stage 2 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 33 | |||
IFRS9 [member] | Residential mortgages [member] | Stage 3 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 24 | |||
IFRS9 [member] | Consumer installment and other personal [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 550 | |||
IFRS9 [member] | Consumer installment and other personal [member] | Stage 1 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 70 | |||
IFRS9 [member] | Consumer installment and other personal [member] | Stage 2 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 344 | |||
IFRS9 [member] | Consumer installment and other personal [member] | Stage 3 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 136 | |||
IFRS9 [member] | Credit Card [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 284 | |||
IFRS9 [member] | Credit Card [Member] | Stage 1 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 63 | |||
IFRS9 [member] | Credit Card [Member] | Stage 2 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 221 | |||
IFRS9 [member] | Business and government loans [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 772 | 1,145 | 915 | $ 912 |
Remeasurement of allowance for credit losses | $ (389) | $ (263) | ||
IFRS9 [member] | Business and government loans [member] | Stage 1 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 205 | |||
IFRS9 [member] | Business and government loans [member] | Stage 2 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 334 | |||
IFRS9 [member] | Business and government loans [member] | Stage 3 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 233 | |||
IFRS9 [member] | Allowance for credit losses related to loans [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 1,679 | |||
IFRS9 [member] | Allowance for credit losses related to loans [member] | Stage 1 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 354 | |||
IFRS9 [member] | Allowance for credit losses related to loans [member] | Stage 2 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 932 | |||
IFRS9 [member] | Allowance for credit losses related to loans [member] | Stage 3 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 393 | |||
IFRS9 [member] | Allowance for remaining financial assets [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 8 | |||
IFRS9 [member] | Allowance for remaining financial assets [member] | Stage 1 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 7 | |||
IFRS9 [member] | Allowance for remaining financial assets [member] | Stage 2 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 1 | |||
IFRS9 [member] | Allowance for off balance sheet positions [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 239 | |||
IFRS9 [member] | Allowance for off balance sheet positions [member] | Stage 1 [member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 89 | |||
IFRS9 [member] | Allowance for off balance sheet positions [member] | Stage 2 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | 123 | |||
IFRS9 [member] | Allowance for off balance sheet positions [member] | Stage 3 [Member] | ||||
Disclosure of expected impact of initial application of new standards or interpretations [line items] | ||||
Allowance for credit losses | $ 27 |
Transition to IFRS 9 - Addition
Transition to IFRS 9 - Additional Information (Detail) | 12 Months Ended |
Oct. 31, 2019 | |
Bottom of range [member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Proportion of voting rights held in associate | 20.00% |
Top of range [member] | |
Disclosure of expected impact of initial application of new standards or interpretations [line items] | |
Proportion of voting rights held in associate | 50.00% |