How We Performed

Balance sheet

See Consolidated Balance Sheet page 55 (pdf)

Total assets were $274 billion at the end of the year, $4 billion or 2% lower than as at October 31, 2002. A decline in investment securities activity resulted in a $4 billion decrease and business and government loans decreased by $11 billion as compared with October 31, 2002. However, securities purchased under resale agreements increased by $4 billion to $17 billion due to increased securities volumes. Also, as compared with last year, personal loans, including securitizations, increased by $6 billion to reach $49 billion. At the end of the year, residential mortgages, including securitizations, increased by $5 billion to reach $72 billion as compared with last year. Bank-originated securitized assets not included on the balance sheet amounted to $18 billion compared with $15 billion at October 31, 2002. Wholesale deposits decreased by $14 billion as compared with October 31, 2002. However, personal non-term deposits increased by $2 billion to $53 billion and personal term deposits increased by $3 billion to $53 billion compared with October 31, 2002.

Total assets were $278 billion at October 31, 2002, $10 billion or 3% lower than as at October 31, 2001. Lower volumes from trading securities contributed $13 billion to the decrease in total assets with securities purchased under resale agreements representing $7 billion of the decrease. Personal loans, including securitizations, increased by $2 billion, primarily attributable to a solid performance in real estate secured lines of credit in Personal and Commercial Banking. At the end of fiscal 2002, residential mortgages, including securitizations, increased by $1 billion from 2001 to $67 billion. As at October 31, 2002, wholesale deposits decreased by $11 billion and securities under repurchase agreements decreased by $6 billion as compared with October 31, 2001. Personal non-term deposits grew by $4 billion from October 31, 2001 to reach $51 billion at the end of fiscal 2002, with Personal and Commercial Banking accounting for the majority of this increase. Personal term deposits remained unchanged at $50 billion compared with 2001.

The Bank also enters into structured transactions on behalf of clients which result in assets recorded on the Bank’s Consolidated Balance Sheet for which market risk has been transferred to third parties via total return swaps. As at October 31, 2003, assets under such arrangements amounted to $13 billion compared with $11 billion in 2002 and $10 billion in 2001. The Bank also acquires market risk on certain assets via total return swaps, without acquiring the cash instruments directly. Assets under such arrangements amounted to $6 billion as at October 31, 2003 compared with $6 billion in 2002 and $6 billion in 2001. Market risk for all such positions is tracked and monitored, and regulatory market risk capital is required. The assets sold under these arrangements are discussed in the other financial transactions section on page 15 are included in this amount. See Note 18 of the Bank’s Consolidated Financial Statements for more details of derivative contracts.