BNS
$73.53
Bank of Nova Scotia
($.10)
(.14%)
Earnings Details
Quarter October 2021
Tuesday, November 30, 2021 6:00:00 AM
Tweet Share Watch
Summary

Bank of Nova Scotia (BNS) Recent Earnings

Bank of Nova Scotia (BNS) reported Quarter October 2021 earnings of $1.66 per share on revenue of $7.7 billion. The consensus earnings estimate was $1.53 per share on revenue of $6.2 billion. Revenue grew 2.4% on a year-over-year basis.

Bank of Nova Scotia is a diversified financial services institution that provides financial products and services to retail, commercial and corporate customers around the world.

Results
Reported Earnings
$1.66
Earnings Whisper
-
Consensus Estimate
$1.53
Reported Revenue
$7.67 Bil
Revenue Estimate
$6.19 Bil
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Scotiabank reports fourth quarter and 2021 results

Scotiabank's 2021 audited annual consolidated financial statements and accompanying Management's Discussion & Analysis (MD&A) are available at www.scotiabank.com along with the supplementary financial information and regulatory capital disclosure reports, which includes fourth quarter financial information. All amounts are in Canadian dollars and are based on our audited annual consolidated financial statements and accompanying MD&A for the year ended October 31, 2021 and related notes prepared in accordance with International Financial Reporting Standards (IFRS), unless otherwise noted.

 

Additional information related to the Bank, including the Bank's Annual Information Form, can be found on the SEDAR website at www.sedar.com and on the EDGAR section of the SEC's website at www.sec.gov.

Fiscal 2021 Highlights on a Reported Basis
(versus Fiscal 2020)

Fourth Quarter 2021 Highlights on a Reported Basis
(versus Q4, 2020)

Net income of $9,955 million, compared to $6,853 million

Net income of $2,559 million, compared to $1,899 million

Earnings per share (diluted) of $7.70, compared to $5.30

Earnings per share (diluted) of $1.97, compared to $1.42

Return on equity(1) of 14.7%, compared to 10.4%

Return on equity of 14.8%, compared to 11.0% 

Annual common dividend per share of $3.60

Quarterly dividend increase of 10 cents per common share to $1.00





Fiscal 2021 Highlights on an Adjusted Basis(2)

(versus Fiscal 2020)

Fourth Quarter 2021 Highlights on an Adjusted Basis(2)
(versus Q4, 2020)

Net income of $10,169 million, compared to $6,961 million

Net income of $2,716 million, compared to $1,938 million

Earnings per share (diluted) of $7.87, compared to $5.36

Earnings per share (diluted) of $2.10, compared to $1.45

Return on equity of 15.0%, compared to 10.4%

Return on equity of 15.6%, compared to 11.3%

Fiscal 2021 Performance versus Medium-Term Objectives

The following table provides a summary of our 2021 performance against our medium-term financial performance objectives:

Medium-Term Objectives

                     Fiscal 2021 Results


Reported

Adjusted(2)

Diluted earnings per share growth of 7%+

45.3%

46.8%

Return on equity of 14%+

14.7%

15.0%

Achieve positive operating leverage

Positive 1.1%

Positive 1.5%

Maintain strong capital ratios

CET1 capital ratio(3) of 12.3%

CET1 capital ratio(3) of 12.3%

TORONTO, Nov. 30, 2021 /CNW/ - Scotiabank reported net income of $9,955 million for the fiscal year 2021, compared with net income of $6,853 million in 2020. Diluted earnings per share (EPS) were $7.70, compared to $5.30 in the previous year. Return on equity was 14.7%, compared to 10.4% in the previous year.

Adjusted net income(2) was $10,169 million, up from $6,961 million in the previous year, and EPS was $7.87 versus $5.36 in the previous year.

Reported net income for the fourth quarter ended October 31, 2021 was $2,559 million compared to $1,899 million in the same period last year. Diluted earnings per share were $1.97, compared to $1.42 in the same period a year ago.

Adjusted net income(2) for the fourth quarter ended October 31, 2021 was $2,716 million and EPS was $2.10, up from $1.45 last year. Adjusted return on equity was 15.6% compared to 11.3% a year ago.

"We ended the year with strong fourth quarter earnings and exceeded our medium-term financial targets in fiscal 2021. Our diversified business model demonstrated its resilience through the pandemic, and the Bank is well positioned to achieve its full earnings power in the upcoming year. I am extremely proud of how the Scotiabank team supported our clients, customers and communities as they continued to navigate through the challenges of the pandemic, while also continuing to stay focused on creating long-term sustainable value for our shareholders. As we close out 2021, it is clear that our sharpened footprint and our significant investments in our digital capabilities have positioned the Bank for a very bright future," said Brian Porter, President and CEO of Scotiabank. The Bank was also recently recognized for outstanding leadership in the Global Finance 2021 Sustainable Finance Awards for its efforts to support clients with industry-leading advice and expertise to help achieve strong business growth that is environmentally and socially responsible.

Canadian Banking generated adjusted earnings of $4,171 million in 2021, an increase of 60% compared to the prior year. The increase was due primarily to lower provision for credit losses and higher revenues driven by non-interest income and strong loan growth. During the year, Scotiabank received the #1 ranking in the J.D. Power 2021 Canada Online Banking Satisfaction Study for the second year in a row.

Global Wealth Management reported adjusted earnings of $1,592 million in 2021, up 23% compared to the prior year. The higher earnings were driven by strong results across both Canadian Advisory and Asset Management businesses.

Global Banking and Markets delivered another strong year with earnings of $2,075 million. This performance was driven by solid performance across the business, prudent expense management and lower provision for credit losses.

International Banking earnings improved through 2021 generating adjusted earnings of $1,855 million, an increase of 62% compared to the prior year. This was driven by strong commercial and secured lending loan growth, prudent expense management supported by accelerated customer adoption of digital channels and lower provision for loan losses, driven by improved credit outlook. 

With a Common Equity Tier 1 capital ratio of 12.3% the Bank remains well capitalized to support its strategic growth plans and return capital back to shareholders.  This quarter we announced a 10 cent increase in the quarterly dividend to $1.00 per common share, 11% higher than a year ago.

"As we look forward to 2022, we expect to deliver strong growth across all our business lines, with optionality and multiple avenues to grow," said Brian Porter, President and CEO, Scotiabank.

______________________________

(1)

Refer to page 141 of the Management's Discussion & Analysis in the Bank's 2021 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

(2)

Refer to Non-GAAP Measures section on page 3.

(3)

This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018).

Non-GAAP Measures

The Bank uses a number of financial measures to assess its performance. Some of these measures are not calculated in accordance with Generally Accepted Accounting Principles (GAAP), which are based on International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), are not defined by GAAP and do not have standardized meanings that would ensure consistency and comparability among companies using these measures. The Bank believes that non-GAAP measures are useful in assessing ongoing business performance and provide readers with a better understanding of how management assesses performance. These non-GAAP measures are used throughout this press release and defined below.

Adjusted results and diluted earnings per share

The following table presents a reconciliation of GAAP Reported financial results to Non-GAAP Adjusted financial results. The financial results have been adjusted for the following:

1.

Adjustments impacting current and prior periods:





A.

Amortization of Acquisition-related intangible assets:
These costs relate to the amortization of intangibles recognized upon the acquisition of businesses and are recorded in the Canadian Banking, International Banking and Global Wealth Management operating segments.





B.

Restructuring and other provisions, recorded in Q4, 2021:
The Bank recorded a restructuring charge of $126 million pre-tax, substantially related to International Banking for the cost of reducing branches and full time employees, driven by the accelerated customer adoption of digital channels and process automation. These efficiencies are a result of the Bank's commitment to simplify processes and optimize distribution channels to run businesses more effectively while meeting changing customer needs. This charge was recorded in the Other operating segment.

 



The Bank recorded settlement and litigation provisions in the amount of $62 million pre-tax in the Other operating segment in connection with the Bank's former metals business.



2.

Adjustments impacting prior periods only:





A.

Acquisition and divestiture-related amounts, which are defined as follows:







i.

Acquisition-related integration costs – Includes costs that were incurred and related to integrating previously acquired businessess. These costs were recorded in the Canadian Banking, International Banking and Global Wealth Management operating segments. The costs relate to the following acquisitions:

  • Banco Cencosud, Peru (closed Q2, 2019)
  • Banco Dominicano del Progreso, Dominican Republic (closed Q2, 2019)
  • MD Financial Management, Canada (closed Q4, 2018)
  • Jarislowsky, Fraser Limited, Canada (closed Q3, 2018)
  • Citibank consumer and small and medium enterprise operations, Colombia (closed Q3, 2018)
  • BBVA, Chile (closed Q3, 2018)


ii.

Net (gain)/loss on divestitures – The Bank announced a number of divestitures in accordance with its strategy to reposition the Bank. The net (gain)/loss on divestitures is recorded in the Other operating segment (refer to Note 37 of the Bank's 2021 Annual Report to Shareholders for further details):

  • Operations in British Virgin Islands (closed Q3, 2020)
  • Equity-accounted investment in Thanachart Bank, Thailand (closed Q1, 2020)
  • Colfondos AFP, Colombia (closed Q1, 2020)
  • Operations in Puerto Rico and USVI (closed Q1, 2020)
  • Insurance and banking operations in El Salvador (closed Q1, 2020)
  • Banking operations in the Caribbean: Anguilla, Dominica, Grenada, St. Kitts & Nevis, St. Lucia, St. Maarten, St. Vincent &  the Grenadines (closed Q4, 2019)
  • Insurance and pension operations in the Dominican Republic (closed Q2, 2019)


iii.

Day 1 provision for credit losses on acquired performing financial instruments, as required by IFRS 9. The accounting standard does not differentiate between originated and purchased performing loans and as such, requires the same accounting treatment for both. These credit losses are considered Acquisition-related costs in periods where applicable and are recorded in the International Banking segment. The provision for 2019 relates to Banco Cencosud, Peru and Banco Dominicano del Progreso, Dominican Republic.





B.

Valuation-related adjustments, recorded in Q1, 2020:

The Bank modified its allowance for credit losses measurement methodology by adding an additional, more severe pessimistic scenario, consistent with developing practice among major international banks in applying IFRS 9, and the Bank's prudent approach to expected credit loss provisioning. The modification resulted in an increase in provision for credit losses of $155 million which was recorded in Canadian Banking, International Banking, Global Wealth Management and Global Banking and Markets operating segments. The Bank enhanced its fair value methodology primarily relating to uncollateralized OTC derivatives which resulted in a pre-tax charge of $116 million. This charge was recorded in the Global Banking and Markets and Other operating segments. The Bank also recorded an impairment loss in the Other operating segment of $44 million pre-tax, related to one software asset.


Reconciliation of reported and adjusted results and diluted earnings per share




For the three months ended

For the year ended


October 31

July 31

October 31

October 31

October 31

($ millions)

2021

2021

2020

2021

2020

Reported Results











Net interest income

$

4,217

$

4,217

$

4,258

$

16,961

$

17,320

Non-interest income


3,470


3,540


3,247


14,291


14,016

Total Revenue


7,687


7,757


7,505


31,252


31,336

Provision for credit losses


168


380


1,131


1,808


6,084

Non-interest expenses


4,271


4,097


4,057


16,618


16,856

Income before taxes


3,248


3,280


2,317


12,826


8,396

Income tax expense


689


738


418


2,871


1,543

Net income

$

2,559

$

2,542

$

1,899

$

9,955

$

6,853

Net income attributable to non-controlling interests in subsidiaries (NCI)


70


81


72


331


75

Net income attributable to equity holders

$

2,489

$

2,461

$

1,827

$

9,624

$

6,778

Preferred shareholders and other equity instrument holders


78


35


82


233


196

Net income attributable to common shareholders

$

2,411

$

2,426

$

1,745

$

9,391

$

6,582

Diluted earnings per share (in dollars)

$

1.97

$

1.99

$

1.42

$

7.70

$

5.30

Adjustments











Amortization of Acquisition-related intangible assets, excluding











software(1)

$

25

$

24

$

26

$

103

$

106

Restructuring and other provisions(1)


188


-


-


188


-

Acquisition-related integration costs(1)


-


-


20


-


177

Net (gain)/loss on divestitures(2)


-


-


8


-


(298)

Allowance for credit losses - Additional scenario(3)


-


-


-


-


155

Derivatives valuation adjustment(4)


-


-


-


-


116

Impairment charge on software asset(1)


-


-


-


-


44

Adjustments (Pre-tax)


213


24


54


291


300

Income tax expense/(benefit)


(56)


(6)


(15)


(77)


(192)

Adjustments (After tax)


157


18


39


214


108

Adjustment attributable to NCI


(10)


-


-


(10)


(60)

Adjustments (After tax and NCI)

$

147

$

18

$

39

$

204

$

48

Adjusted Results











Net interest income

$

4,217

$

4,217

$

4,258

$

16,961

$

17,320

Non-interest income


3,470


3,540


3,247


14,291


13,819

Total revenue


7,687


7,757


7,505


31,252


31,139

Provision for credit losses


168


380


1,131


1,808


5,929

Non-interest expenses


4,058


4,073


4,003


16,327


16,514

Income before taxes


3,461


3,304


2,371


13,117


8,696

Income tax expense


745


744


433


2,948


1,735

Net income

$

2,716

$

2,560

$

1,938

$

10,169

$

6,961

Net income attributable to NCI


80


81


72


341


135

Net income attributable to equity holders

$

2,636

$

2,479

$

1,866

$

9,828

$

6,826

Preferred shareholders and other equity instrument holders


78


35


82


233


196

Net income attributable to common shareholders

$

2,558

$

2,444

$

1,784

$

9,595

$

6,630

Adjusted diluted earnings per share











Adjusted net income attributable to common shareholders


2,558


2,444


1,784


9,595


6,630

Dilutive impact of share-based payment options and others


7


9


21


48


38

Adjusted net income attributable to common shareholders (diluted)

$

2,565

$

2,453

$

1,805

$

9,643

$

6,668

Weighted average number of basic common shares outstanding (millions)


1,215


1,215


1,211


1,214


1,212

Dilutive impact of share-based payment options and others (millions)


9


8


35


11


31

Adjusted weighted average number of diluted common shares outstanding (millions)


1,224


1,223


1,246


1,225


1,243

Adjusted diluted earnings per share (in dollars)(5)

$

2.10

$

2.01

$

1.45

$

7.87

$

5.36

Impact of adjustments on diluted earnings per share (in dollars)

$

0.13

$

0.02

$

0.03

$

0.17

$

0.06


(1)

Recorded in non-interest expenses.

(2)

(Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.

(3)

Recorded in provision for credit losses.

(4)

Recorded in non-interest income.

(5)

Earnings per share calculations are based on full dollar and share amounts.

 

Reconciliation of reported and adjusted results by business line























For the three months ended October 31, 2021(1)

($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global

Banking and Markets

Other

Total

Reported Results













Net interest income

$

2,082

$

1,589

$

161

$

365

$

20

$

4,217

Non-interest income


749


728


1,186


812


(5)


3,470

Total Revenue


2,831


2,317


1,347


1,177


15


7,687

Provision for credit losses


(96)


314


1


(50)


(1)


168

Non-interest expenses


1,251


1,259


824


591


346


4,271

Income before taxes


1,676


744


522


636


(330)


3,248

Income tax expense


438


137


135


134


(155)


689

Net income

$

1,238

$

607

$

387

$

502

$

(175)

$

2,559

Net income attributable to non-controlling interests in subsidiaries (NCI)


-


79


2


-


(11)


70

Net income attributable to equity holders

$

1,238

$

528

$

385

$

502

$

(164)

$

2,489

Adjustments













Amortization of Acquisition-related intangible assets, excluding













software(2)

$

6

$

10

$

9

$

-

$

-

$

25

Restructuring and other provisions(2)


-


-


-


-


188


188

Adjustments (Pre-tax)


6


10


9


-


188


213

Income tax expense/(benefit)


(2)


(3)


(2)


-


(49)


(56)

Adjustments (After tax)


4


7


7


-


139


157

Adjustment attributable to NCI


-


-


-


-


(10)


(10)

Adjustments (After tax and NCI)

$

4

$

7

$

7

$

-

$

129

$

147

Adjusted Results













Net interest income

$

2,082

$

1,589

$

161

$

365

$

20

$

4,217

Non-interest income


749


728


1,186


812


(5)


3,470

Total revenue


2,831


2,317


1,347


1,177


15


7,687

Provision for credit losses


(96)


314


1


(50)


(1)


168

Non-interest expenses


1,245


1,249


815


591


158


4,058

Income before taxes


1,682


754


531


636


(142)


3,461

Income tax expense


440


140


137


134


(106)


745

Net income

$

1,242

$

614

$

394

$

502

$

(36)

$

2,716

Net income attributable to NCI


-


79


2


-


(1)


80

Net income attributable to equity holders

$

1,242

$

535

$

392

$

502

$

(35)

$

2,636

(1)

Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2)

Recorded in non-interest expenses.















 

Reconciliation of reported and adjusted results by business line























For the three months ended July 31, 2021(1)

($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global

Banking and Markets

Other

Total

Reported Results













Net interest income

$

2,030

$

1,586

$

160

$

363

$

78

$

4,217

Non-interest income


765


776


1,175


890


(66)


3,540

Total Revenue


2,795


2,362


1,335


1,253


12


7,757

Provision for credit losses


69


339


(1)


(27)


-


380

Non-interest expenses


1,267


1,299


812


620


99


4,097

Income before taxes


1,459


724


524


660


(87)


3,280

Income tax expense


380


160


132


147


(81)


738

Net income

$

1,079

$

564

$

392

$

513

$

(6)

$

2,542

Net income attributable to non-controlling interests in subsidiaries (NCI)


-


78


2


-


1


81

Net income attributable to equity holders

$

1,079

$

486

$

390

$

513

$

(7)

$

2,461

Adjustments













Amortization of Acquisition-related intangible assets, excluding













 software(2)

$

5

$

11

$

8

$

-

$

-

$

24

Adjustments (Pre-tax)


5


11


8


-


-


24

Income tax expense/(benefit)


(1)


(4)


(1)


-


-


(6)

Adjustments (After tax)


4


7


7


-


-


18

Adjustment attributable to NCI


-


-


-


-


-


-

Adjustments (After tax and NCI)

$

4

$

7

$

7

$

-

$

-

$

18

Adjusted Results













Net interest income

$

2,030

$

1,586

$

160

$

363

$

78

$

4,217

Non-interest income


765


776


1,175


890


(66)


3,540

Total revenue


2,795


2,362


1,335


1,253


12


7,757

Provision for credit losses


69


339


(1)


(27)


-


380

Non-interest expenses


1,262


1,288


804


620


99


4,073

Income before taxes


1,464


735


532


660


(87)


3,304

Income tax expense


381


164


133


147


(81)


744

Net income

$

1,083

$

571

$

399

$

513

$

(6)

$

2,560

Net income attributable to NCI


-


78


2


-


1


81

Net income attributable to equity holders

$

1,083

$

493

$

397

$

513

$

(7)

$

2,479

(1)

Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2)

Recorded in non-interest expenses.

 

Reconciliation of reported and adjusted results by business line























For the three months ended October 31, 2020(1)

($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global

Banking and Markets

Other

Total

Reported Results













Net interest income

$

1,954

$

1,785

$

144

$

350

$

25

$

4,258

Non-interest income


612


763


1,021


860


(9)


3,247

Total Revenue


2,566


2,548


1,165


1,210


16


7,505

Provision for credit losses


330


736


3


62


-


1,131

Non-interest expenses


1,186


1,424


726


583


138


4,057

Income before taxes


1,050


388


436


565


(122)


2,317

Income tax expense


272


55


111


105


(125)


418

Net income

$

778

$

333

$

325

$

460

$

3

$

1,899

Net income attributable to non-controlling interests in subsidiaries (NCI)


-


70


2


-


-


72

Net income attributable to equity holders

$

778

$

263

$

323

$

460

$

3

$

1,827

Adjustments













Amortization of Acquisition-related intangible assets, excluding













software(2)

$

6

$

11

$

9

$

-

$

-

$

26

Acquisition-related integration costs(2)


-


16


4


-


-


20

Net (gain)/loss on divestitures(3)


-


-


-


-


8


8

Adjustments (Pre-tax)


6


27


13


-


8


54

Income tax expense/(benefit)


(2)


(7)


(3)


-


(3)


(15)

Adjustments (After tax)


4


20


10


-


5


39

Adjustment attributable to NCI


-


-


-


-


-


-

Adjustments (After tax and NCI)

$

4

$

20

$

10

$

-

$

5

$

39

Adjusted Results













Net interest income

$

1,954

$

1,785

$

144

$

350

$

25

$

4,258

Non-interest income


612


763


1,021


860


(9)


3,247

Total revenue


2,566


2,548


1,165


1,210


16


7,505

Provision for credit losses


330


736


3


62


-


1,131

Non-interest expenses


1,180


1,397


713


583


130


4,003

Income before taxes


1,056


415


449


565


(114)


2,371

Income tax expense


274


62


114


105


(122)


433

Net income

$

782

$

353

$

335

$

460

$

8

$

1,938

Net income attributable to NCI


-


70


2


-


-


72

Net income attributable to equity holders

$

782

$

283

$

333

$

460

$

8

$

1,866


(1)

Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2)

Recorded in non-interest expenses.

(3)

(Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.















 

Reconciliation of reported and adjusted results by business line























For the year ended October 31, 2021(1)

($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global

Banking and Markets

Other

Total

Reported Results













Net interest income

$

8,030

$

6,625

$

628

$

1,436

$

242

$

16,961

Non-interest income


2,868


2,993


4,752


3,587


91


14,291

Total Revenue


10,898


9,618


5,380


5,023


333


31,252

Provision for credit losses


333


1,574


2


(100)


(1)


1,808

Non-interest expenses


4,951


5,254


3,255


2,458


700


16,618

Income before taxes


5,614


2,790


2,123


2,665


(366)


12,826

Income tax expense


1,459


635


549


590


(362)


2,871

Net income

$

4,155

$

2,155

$

1,574

$

2,075

$

(4)

$

9,955

Net income attributable to non-controlling interests in subsidiaries (NCI)


-


332


9


-


(10)


331

Net income attributable to equity holders

$

4,155

$

1,823

$

1,565

$

2,075

$

6

$

9,624

Adjustments













Amortization of Acquisition-related intangible assets, excluding













software(2)

$

22

$

45

$

36

$

-

$

-

$

103

Restructuring and other provisions(2)


-


-


-


-


188


188

Adjustments (Pre-tax)


22


45


36


-


188


291

Income tax expense/(benefit)


(6)


(13)


(9)


-


(49)


(77)

Adjustments (After tax)


16


32


27


-


139


214

Adjustment attributable to NCI


-


-


-


-


(10)


(10)

Adjustments (After tax and NCI)

$

16

$

32

$

27

$

-

$

129

$

204

Adjusted Results













Net interest income

$

8,030

$

6,625

$

628

$

1,436

$

242

$

16,961

Non-interest income


2,868


2,993


4,752


3,587


91


14,291

Total revenue


10,898


9,618


5,380


5,023


333


31,252

Provision for credit losses


333


1,574


2


(100)


(1)


1,808

Non-interest expenses


4,929


5,209


3,219


2,458


512


16,327

Income before taxes


5,636


2,835


2,159


2,665


(178)


13,117

Income tax expense


1,465


648


558


590


(313)


2,948

Net income

$

4,171

$

2,187

$

1,601

$

2,075

$

135

$

10,169

Net income attributable to NCI


-


332


9


-


-


341

Net income attributable to equity holders

$

4,171

$

1,855

$

1,592

$

2,075

$

135

$

9,828


(1)

Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2)

Recorded in non-interest expenses.















 

Reconciliation of reported and adjusted results by business line























For the year ended October 31, 2020(1)

($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global

Banking and Markets

Other

Total

Reported Results













Net interest income

$

7,838

$

7,603

$

575

$

1,435

$

(131)

$

17,320

Non-interest income


2,461


3,207


4,009


3,947


392


14,016

Total Revenue


10,299


10,810


4,584


5,382


261


31,336

Provision for credit losses


2,073


3,613


7


390


1


6,084

Non-interest expenses


4,811


5,943


2,878


2,473


751


16,856

Income before taxes


3,415


1,254


1,699


2,519


(491)


8,396

Income tax expense


879


182


437


564


(519)


1,543

Net income

$

2,536

$

1,072

$

1,262

$

1,955

$

28

$

6,853

Net income attributable to non-controlling interests in subsidiaries (NCI)


-


92


10


-


(27)


75

Net income attributable to equity holders

$

2,536

$

980

$

1,252

$

1,955

$

55

$

6,778

Adjustments













Amortization of Acquisition-related intangible assets, excluding













software(2)

$

22

$

47

$

37

$

-

$

-

$

106

Acquisition-related integration costs(2)


-


154


23


-


-


177

Net (gain)/loss on divestitures(3)


-


-


-


-


(298)


(298)

Allowance for credit losses - Additional scenario(4)


71


77


1


6


-


155

Derivatives valuation adjustment(5)


-


-


-


102


14


116

Impairment charge on software asset(2)


-


-


-


-


44


44

Adjustments (Pre-tax)


93


278


61


108


(240)


300

Income tax expense/(benefit)


(25)


(78)


(16)


(29)


(44)


(192)

Adjustments (After tax)


68


200


45


79


(284)


108

Adjustment attributable to NCI


-


(32)


-


-


(28)


(60)

Adjustments (After tax and NCI)

$

68

$

168

$

45

$

79

$

(312)

$

48

Adjusted Results













Net interest income

$

7,838

$

7,603

$

575

$

1,435

$

(131)

$

17,320

Non-interest income


2,461


3,207


4,009


4,049


93


13,819

Total revenue


10,299


10,810


4,584


5,484


(38)


31,139

Provision for credit losses


2,002


3,536


6


384


1


5,929

Non-interest expenses


4,789


5,742


2,818


2,473


692


16,514

Income before taxes


3,508


1,532


1,760


2,627


(731)


8,696

Income tax expense


904


260


453


593


(475)


1,735

Net income

$

2,604

$

1,272

$

1,307

$

2,034

$

(256)

$

6,961

Net income attributable to NCI


-


124


10


-


1


135

Net income attributable to equity holders

$

2,604

$

1,148

$

1,297

$

2,034

$

(257)

$

6,826


(1)

Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2)

Recorded in non-interest expenses.

(3)

(Gain)/Loss on divestitures is recorded in non-interest income; costs related to divestitures are recorded in non-interest expenses.

(4)

Recorded in provision for credit losses.

(5)

Recorded in non-interest income.















Reconciliation of International Banking's reported and adjusted results and constant dollar results

International Banking business segment results are analyzed on a constant dollar basis.  Under the constant dollar basis, prior period amounts are recalculated using current period average foreign currency rates. The following table presents the reconciliation between reported and adjusted and constant dollar results for International Banking for prior periods. The Bank believes that constant dollar is useful for readers in assessing ongoing business performance. The tables below are computed on a basis that is different than the table "Impact of foreign currency translation" on page 16.



For the three months ended

For the year ended

($ millions)

July 31, 2021


October 31, 2020

October 31, 2020

(Taxable equivalent basis)

Reported

Foreign exchange

Constant dollar


Reported

Foreign exchange

Constant dollar


Reported

Foreign exchange

Constant dollar

Net interest income

$

1,586

$

11

$

1,575


$

1,785

$

117

$

1,668


$

7,603

$

543

$

7,060

Non-interest income


776


6


770



763


40


723



3,207


192


3,015

Total revenue


2,362


17


2,345



2,548


157


2,391



10,810


735


10,075

Provision for credit losses


339


4


335



736


62


674



3,613


244


3,369

Non-interest expenses


1,299


4


1,295



1,424


66


1,358



5,943


340


5,603

Income tax expense


160


1


159



55


4


51



182


23


159

Net income

$

564

$

8

$

556


$

333

$

25

$

308


$

1,072

$

128

$

944

Net income attributable to





















non-controlling interest





















in subsidiaries

$

78

$

2

$

76


$

70

$

6

$

64


$

92

$

5

$

87

Net income attributable to





















equity holders of the Bank

$

486

$

6

$

480


$

263

$

19

$

244


$

980

$

123

$

857

Other measures





















Average assets ($ billions)

$

191

$

2

$

189


$

202

$

11

$

191


$

206

$

12

$

194

Average liabilities ($ billions)

$

146

$

1

$

145


$

153

$

8

$

145


$

155

$

8

$

147















































For the three months ended

For the year ended

($ millions)

July 31, 2021


October 31, 2020

October 31, 2020

(Taxable equivalent basis)

Adjusted

Foreign exchange

Constant dollar adjusted


Adjusted

Foreign exchange

Constant dollar adjusted


Adjusted

Foreign exchange

Constant dollar adjusted

Net interest income

$

1,586

$

11

$

1,575


$

1,785

$

117

$

1,668


$

7,603

$

543

$

7,060

Non-interest income


776


6


770



763


40


723



3,207


192


3,015

Total revenue


2,362


17


2,345



2,548


157


2,391



10,810


735


10,075

Provision for credit losses


339


4


335



736


62


674



3,536


239


3,297

Non-interest expenses


1,288


3


1,285



1,397


64


1,333



5,742


328


5,414

Income tax expense


164


3


161



62


5


57



260


29


231

Net income

$

571

$

7

$

564


$

353

$

26

$

327


$

1,272

$

139

$

1,133

Net income attributable to





















non-controlling interest





















in subsidiaries

$

78

$

2

$

76


$

70

$

6

$

64


$

124

$

7

$

117

Net income attributable to





















equity holders of the Bank

$

493

$

5

$

488


$

283

$

20

$

263


$

1,148

$

132

$

1,016

Earning assets

Earning assets are defined as income generating assets which include interest-bearing deposits with financial institutions, trading assets, investment securities, investment in associates, securities borrowed or purchased under resale agreements, loans net of allowances, and customers' liability under acceptances.

Non-earning assets

Non-earning assets are defined as cash and non-interest bearing deposits with financial institutions, precious metals, derivative financial instruments, property and equipment, goodwill and other intangible assets, deferred tax assets and other assets.

Core earning assets

Core earning assets are defined as earning assets excluding investments in associates, customers' liability under acceptances, and trading assets, securities borrowed or purchased under resale agreements and other assets related to capital markets businesses.

Core net interest income

Core net interest income is defined as net interest income earned from core earning assets.

Net Interest Margin

Net interest margin is calculated as core net interest income for the business line divided by average core earning assets.

Average earning assets, average total assets, average core earning assets and net interest margin by business line















For the three months ended October 31, 2021 ($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global Banking and Markets

Other

Total

Deposits with financial institutions

$

160

$

14,895

$

691

$

198

$

60,691

$

76,635

Trading assets


-


5,981


12


136,525


2,183


144,701

Securities purchased under resale agreements














and securities borrowed


-


2,342


-


119,297


1


121,640

Investment securities including investments in associates


1,136


15,816


292


5,806


57,825


80,875

Net loans and acceptances


392,745


137,622


19,042


110,179


(3,868)


655,720

Total earning assets

$

394,041

$

176,656

$

20,037

$

372,005

$

116,832

$

1,079,571

Non-earning assets


4,100


15,563


10,440


36,522


26,511


93,136

Total assets

$

398,141

$

192,219

$

30,477

$

408,527

$

143,343

$

1,172,707














Total earning assets


394,041


176,656


20,037


372,005


116,832


1,079,571

Less:













Investments in associates


814


1,669


-


-


64


2,547

Trading assets


-


5,453


-


136,311


2,182


143,946

Securities purchased under resale agreements














and securities borrowed                                                


-


-


-


119,195


-


119,195

Customers' liability under acceptances


17,966


60


4,551


10,660


(15,035)


18,202

Other deductions


-


237


-


23,242


11,152


34,631

Core earning assets

$

375,261

$

169,237

$

15,486

$

82,597

$

118,469

$

761,050














Net interest margin













Net interest income


2,082


1,589


161


365


20


4,217

Less: Non-core net interest income


-


15


-


35


-


50

Core net interest income

$

2,082

$

1,574

$

161

$

330

$

20

$

4,167

Net interest margin


2.20%


3.69%


4.13%


1.59%


nm(1)


2.17%

(1)  Not meaningful


























Average earning assets, average total assets, average core earning assets and net interest margin by business line








For the three months ended July 31, 2021 ($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global Banking and Markets

Other

Total

Deposits with financial institutions

$

140

$

15,897

$

699

$

392

$

56,088

$

73,216

Trading assets


-


6,495


17


134,922


1,789


143,223

Securities purchased under resale agreements














and securities borrowed


-


3,422


-


117,347


10


120,779

Investment securities including investments in associates


1,098


16,511


298


5,828


62,107


85,842

Net loans and acceptances


378,590


134,232


17,999


106,710


(4,783)


632,748

Total earning assets

$

379,828

$

176,557

$

19,013

$

365,199

$

115,211

$

1,055,808

Non-earning assets


4,090


14,141


10,466


35,718


27,874


92,289

Total assets

$

383,918

$

190,698

$

29,479

$

400,917

$

143,085

$

1,148,097














Total earning assets


379,828


176,557


19,013


365,199


115,211


1,055,808

Less:













Investments in associates


799


1,611


-


-


68


2,478

Trading assets


-


6,007


-


134,665


1,788


142,460

Securities purchased under resale agreements














and securities borrowed                                      


-


-


-


117,271


-


117,271

Customers' liability under acceptances


17,394


46


4,329


10,248


(15,610)


16,407

Other deductions


-


871


-


23,499


10,801


35,171

Core earning assets

$

361,635

$

168,022

$

14,684

$

79,516

$

118,164

$

742,021














Net interest margin













Net interest income


2,030


1,586


160


363


78


4,217

Less: Non-core net interest income


-


12


-


36


-


48

Core net interest income

$

2,030

$

1,574

$

160

$

327

$

78

$

4,169

Net interest margin


2.23%


3.72%


4.32%


1.63%


nm(1)


2.23%

(1)  Not meaningful
































For the three months ended October 31, 2020 ($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global Banking and Markets

Other

Total

Deposits with financial institutions

$

140

$

18,547

$

920

$

1,552

$

40,933

$

62,092

Trading assets


-


5,393


10


112,183


2,315


119,901

Securities purchased under resale agreements














and securities borrowed


-


3,134


-


117,897


-


121,031

Investment securities including investments in associates


1,013


16,419


262


6,300


94,132


118,126

Net loans and acceptances


357,450


141,610


14,965


108,929


(3,949)


619,005

Total earning assets

$

358,603

$

185,103

$

16,157

$

346,861

$

133,431

$

1,040,155

Non-earning assets


4,157


16,911


10,563


41,646


26,717


99,994

Total assets

$

362,760

$

202,014

$

26,720

$

388,507

$

160,148

$

1,140,149














Total earning assets


358,603


185,103


16,157


346,861


133,431


1,040,155

Less:













Investments in associates


730


1,612


-


-


66


2,408

Trading assets


-


4,704


-


111,854


2,314


118,872

Securities purchased under resale agreements














and securities borrowed                                                


-


-


-


117,858


-


117,858

Customers' liability under acceptances


14,330


45


3,158


10,464


(13,565)


14,432

Other deductions


-


644


-


20,469


9,476


30,589

Core earning assets

$

343,543

$

178,098

$

12,999

$

86,216

$

135,140

$

755,996














Net interest margin













Net interest income


1,954


1,785


144


350


25


4,258

Less: Non-core net interest income


-


8


-


33


-


41

Core net interest income

$

1,954

$

1,777

$

144

$

317

$

25

$

4,217

Net interest margin


2.26%


3.97%


4.41%


1.46%


nm(1)


2.22%

(1)  Not meaningful













 

Average earning assets, average total assets, average core earning assets and net interest margin by business line








For the year ended October 31, 2021 ($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global Banking and Markets

Other

Total

Deposits with financial institutions

$

146

$

16,014

$

742

$

237

$

58,423

$

75,562

Trading assets


-


6,352


14


134,639


1,850


142,855

Securities purchased under resale agreements














and securities borrowed


-


2,919


-


116,896


3


119,818

Investment securities including investments in associates


1,080


16,500


302


6,097


68,229


92,208

Net loans and acceptances


375,444


137,121


17,420


106,020


(4,143)


631,862

Total earning assets

$

376,670

$

178,906

$

18,478

$

363,889

$

124,362

$

1,062,305

Non-earning assets


4,102


15,218


10,487


37,020


28,081


94,908

Total assets

$

380,772

$

194,124

$

28,965

$

400,909

$

152,443

$

1,157,213














Total earning assets


376,670


178,906


18,478


363,889


124,362


1,062,305

Less:













Investments in associates


783


1,646


-


-


62


2,491

Trading assets


-


5,812


-


134,372


1,849


142,033

Securities purchased under resale agreements














and securities borrowed                                    


-


-


-


116,829


-


116,829

Customers' liability under acceptances


16,599


42


4,077


10,413


(14,679)


16,452

Other deductions


-


642


-


21,681


10,484


32,807

Core earning assets

$

359,288

$

170,764

$

14,401

$

80,594

$

126,646

$

751,693














Net interest margin













Net interest income


8,030


6,625


628


1,436


242


16,961

Less: Non-core net interest income


-


50


-


138


2


190

Core net interest income

$

8,030

$

6,575

$

628

$

1,298

$

240

$

16,771

Net interest margin


2.23%


3.85%


4.36%


1.61%


nm(1)


2.23%

(1)  Not meaningful













 

For the year ended October 31, 2020 ($ millions)

Canadian Banking

International Banking

Global Wealth Management

Global Banking and Markets

Other

Total

Deposits with financial institutions

$

153

$

17,790

$

1,009

$

956

$

46,056

$

65,964

Trading assets


-


4,852


17


119,637


3,614


128,120

Securities purchased under resale agreements














and securities borrowed


-


2,412


-


125,741


136


128,289

Investment securities including investments in associates


976


15,573


300


5,730


82,504


105,083

Net loans and acceptances


353,540


147,681


14,109


114,265


(3,957)


625,638

Total earning assets

$

354,669

$

188,308

$

15,435

$

366,329

$

128,353

$

1,053,094

Non-earning assets


4,101


18,074


10,601


45,796


28,918


107,490

Total assets

$

358,770

$

206,382

$

26,036

$

412,125

$

157,271

$

1,160,584














Total earning assets


354,669


188,308


15,435


366,329


128,353


1,053,094

Less:













Investments in associates


713


1,868


-


-


87


2,668

Trading assets


-


4,399


-


119,395


1,113


124,907

Securities purchased under resale agreements














and securities borrowed                                     


-


-


-


125,701


-


125,701

Customers' liability under acceptances


13,584


42


2,748


10,669


(10,996)


16,047

Other deductions


-


1,194


-


18,296


7,294


26,784

Core earning assets

$

340,372

$

180,805

$

12,687

$

92,268

$

130,855

$

756,987














Net interest margin













Net interest income


7,838


7,603


575


1,435


(131)


17,320

Less: Non-core net interest income


-


39


-


78


5


122

Core net interest income

$

7,838

$

7,564

$

575

$

1,357

$

(136)

$

17,198

Net interest margin


2.30%


4.18%


4.53%


1.47%


nm(1)


2.27%

(1)  Not meaningful













Return on equity

Return on equity is a profitability measure that presents the net income attributable to common shareholders as a percentage of average common shareholders' equity.

The Bank attributes capital to its business lines on a basis that approximates 10.5% of Basel III common equity capital requirements which includes credit, market and operational risks and leverage inherent within each business segment.

Return on equity for the business segments is calculated as a ratio of net income attributable to common shareholders of the business segment and the capital attributed.  

Adjusted return on equity represents adjusted net income attributable to common shareholders as a percentage of adjusted average common shareholders' equity.

Productivity ratio

Management uses the productivity ratio as a measure of the Bank's efficiency. This ratio represents operating expenses as a percentage of total revenue. A lower ratio indicates improved productivity.

Adjusted productivity ratio represents adjusted operating expenses as a percentage of adjusted total revenue.

Operating leverage

This financial metric measures the rate of growth in total revenue less the rate of growth in operating expenses.

Adjusted operating leverage represents the rate of growth in adjusted total revenue less the rate of growth in adjusted operating expenses.

Provision for credit losses as a % of average net loans and acceptances

The ratio represents provision for credit losses (PCL) expressed as a % of average net loans and acceptances.

Adjusted provision for credit losses as a % of average net loans and acceptances represents adjusted PCL expressed as a % of average net loans and acceptances.

Effective tax rate

The effective tax rate is the overall tax rate paid by the Bank on its earned income. The effective tax rate is calculated by dividing the Bank's income tax expenses by the income before taxes.

Adjusted effective tax rate is calculated by dividing adjusted income tax expenses by the adjusted income before taxes.

Taxable equivalent basis

The Bank analyzes its trading-related revenue on a taxable equivalent basis (TEB). This methodology grosses up tax-exempt income earned on certain securities reported in either net interest income or non-interest income to an equivalent before tax basis. Management believes that this basis for measurement provides a uniform comparability of net interest income and non-interest income arising from both taxable and non-taxable sources and facilitates a consistent basis of measurement. While other banks also use TEB, their methodology may not be comparable to the Bank's methodology.

Financial Highlights










As at and for the three months ended

As at and for the year ended


October 31


July 31


October 31 

October 31


October 31 


2021


2021


2020

2021


2020

Operating results ($ millions)









Net interest income

4,217


4,217


4,258

16,961


17,320

Non-interest income

3,470


3,540


3,247

14,291


14,016

Total revenue

7,687


7,757


7,505

31,252


31,336

Provision for credit losses

168


380


1,131

1,808


6,084

Non-interest expenses

4,271


4,097


4,057

16,618


16,856

Income tax expense

689


738


418

2,871


1,543

Net income

2,559


2,542


1,899

9,955


6,853

Net income attributable to common shareholders of the Bank

2,411


2,426


1,745

9,391


6,582

Operating performance









Basic earnings per share ($)

1.98


2.00


1.44

7.74


5.43

Diluted earnings per share ($)

1.97


1.99


1.42

7.70


5.30

Return on equity (%)(1)

14.8


15.0


11.0

14.7


10.4

Productivity ratio (%)(1)

55.6


52.8


54.1

53.2


53.8

Operating leverage (%)(1)






1.1


0.3

Net interest margin (%)(2)

2.17


2.23


2.22

2.23


2.27

Financial position information ($ millions)









Cash and deposits with financial institutions

86,323


75,881


76,460




Trading assets

146,312


141,120


117,839




Loans

636,986


627,749


603,263




Total assets

1,184,844


1,163,429


1,136,466




Deposits

797,259


794,386


750,838




Common equity

64,750


64,720


62,819




Preferred shares and other equity instruments

6,052


5,299


5,308




Assets under administration(1)(3)

652,924


636,424


556,916




Assets under management(1)(3)

345,762


340,853


289,839




Capital and liquidity measures









Common Equity Tier 1 (CET1) capital ratio (%)(4)

12.3


12.2


11.8




Tier 1 capital ratio (%)(4)

13.9


13.7


13.3




Total capital ratio (%)(4)

15.9


15.7


15.5




Leverage ratio (%)(5)

4.8


4.8


4.7




Risk-weighted assets ($ millions)(4)

416,105


414,169


417,138




Liquidity coverage ratio (LCR) (%)(6)

124


123


138




Net stable funding ratio (NSFR) (%)(7)

110


112


n/a




Credit quality









Net impaired loans ($ millions)

2,801


2,976


3,096




Allowance for credit losses ($ millions)(8)

5,731


6,232


7,820




Gross impaired loans as a % of loans and acceptances(1)

0.67


0.73


0.81




Net impaired loans as a % of loans and acceptances(1)

0.42


0.46


0.50




Provision for credit losses as a % of average net loans and acceptances(1)(9)

0.10


0.24


0.73

0.29


0.98

Provision for credit losses on impaired loans as a % of average net loans and acceptances(1)(9)

0.31


0.53


0.54

0.53


0.56

Net write-offs as a % of average net loans and acceptances(1)

0.34


0.62


0.41

0.54


0.47

Adjusted results(2)









Adjusted net income ($ millions)

2,716


2,560


1,938

10,169


6,961

Adjusted diluted earnings per share ($)

2.10


2.01


1.45

7.87


5.36

Adjusted return on equity (%)

15.6


15.1


11.3

15.0


10.4

Adjusted productivity ratio (%)

52.8


52.5


53.3

52.2


53.0

Adjusted operating leverage (%)






1.5


(0.6)

Adjusted provision for credit losses as a % of average net loans and acceptances(9)

0.10


0.24


0.73

0.29


0.95

Common share information









Closing share price ($) (TSX)

81.14


77.87


55.35




Shares outstanding (millions)










Average – Basic

1,215


1,215


1,211

1,214


1,212


Average – Diluted

1,224


1,223


1,246

1,225


1,243


End of period

1,215


1,215


1,211




Dividends paid per share ($)

0.90


0.90


0.90

3.60


3.60

Dividend yield (%)(1)

4.5


4.5


6.4

5.2


5.8

Market capitalization ($ millions) (TSX)

98,612


94,620


67,055




Book value per common share ($)(1)

53.28


53.26


51.85




Market value to book value multiple(1)

1.5


1.5


1.1




Price to earnings multiple (trailing 4 quarters)(1)

10.5


10.8


10.2




Other information









Employees (full-time equivalent)(10)

89,488


90,833


91,447




Branches and offices

2,518


2,555


2,618





(1)

Refer to page 141 of the Management's Discussion & Analysis in the Bank's 2021 Annual Report, available on www.sedar.com, for an explanation of the composition of the measure. Such explanation is incorporated by reference hereto.

(2)

Refer to page 3 for a discussion of Non-GAAP measures.

(3)

Prior period amounts have been restated to appropriately reflect certain intercompany items.









(4)

This measure has been disclosed in this document in accordance with OSFI Guideline - Capital Adequacy Requirements (November 2018).

(5)

This measure has been disclosed in this document in accordance with OSFI Guideline - Leverage Requirements (November 2018).

(6)

This measure has been disclosed in this document in accordance with OSFI Guideline – Public Disclosure Requirements for Domestic Systemically Important Banks on Liquidity Coverage Ratio (April 2015).

(7)

This measure has been disclosed in this document in accordance with OSFI Guideline - Net Stable Funding Ratio Disclosure Requirements (January 2021).

(8)

Includes allowance for credit losses on all financial assets - loans, acceptances, off-balance sheet exposures, debt securities, and deposits with financial institutions.

(9)

Includes provision for credit losses on certain financial assets - loans, acceptances, and off-balance sheet exposures.

(10)

Prior year amounts have been restated to conform with current period presentation.

Impact of Foreign Currency Translation



Average exchange rate

% Change




October 31


July 31



October 31


October 31, 2021 

October 31, 2021 

For the three months ended


2021


2021



2020


vs. July 31, 2021

vs. October 31, 2020 

U.S. Dollar/Canadian Dollar


0.796


0.814



0.756


(2.2)

%

5.2

%

Mexican Peso/Canadian Dollar


16.065


16.265



16.390


(1.2)

%

(2.0)

%

Peruvian Sol/Canadian Dollar


3.239


3.152



2.701


2.8

%

19.9

%

Colombian Peso/Canadian Dollar


3,043


3,050



2,866


(0.2)

%

6.2

%

Chilean Peso/Canadian Dollar


631.752


594.658



591.628


6.2

%

6.8

%























Average exchange rate


% Change









October 31


October 31


October 31, 2021 

For the year ended







2021


2020


vs. October 31, 2020 

U.S. Dollar/Canadian Dollar







0.795


0.744


6.9

%

Mexican Peso/Canadian Dollar







16.035


15.832


1.3

%

Peruvian Sol/Canadian Dollar







3.032


2.569


18.0

%

Colombian Peso/Canadian Dollar







2,929


2,722


7.6

%

Chilean Peso/Canadian Dollar







593.123


591.712


0.2

%






















For the three months ended

For the year ended

Impact on net income(1) ($ millions except EPS)




October 31, 2021 


October 31, 2021


October 31, 2021 



vs. October 31, 2020 


vs. July 31, 2021


vs. October 31, 2020 

Net interest income






$

(110)

$

(10)

$

(512)


Non-interest income(2)







(38)


(9)


(276)


Non-interest expenses







93


-


408


Other items (net of tax)







33


6


203


Net income






$

(22)

$

(13)

$

(177)


Earnings per share (diluted)






$

(0.02)

$

(0.01)

$

(0.14)


Impact by business line ($ millions)













Canadian Banking






$

(1)

$

-

$

(6)


International Banking(2)







(36)


(13)


(130)


Global Wealth Management







(2)


-


(15)


Global Banking and Markets







(14)


5


(79)


Other(2)







31


(5)


53


Net Income






$

(22)

$

(13)

$

(177)



(1)

Includes impact of all currencies.

(2)

Includes the impact of foreign currency hedges.

 

Impact of Divested Operations



For the three months ended

For the year ended



October 31


July 31


October 31

October 31


October 31


($ millions)

2021


2021


2020

2021


2020


Net interest income

$

1

$

4

$

11

$

23

$

123


Non-interest income


1


2


5


13


95


Total Revenue


2


6


16


36


218


Provision for credit losses


(1)


2


1


9


27


Non-interest expenses


1


3


8


16


96


Income before taxes


2


1


7


11


95


Income tax expense


-


-


3


4


25


Net income

$

2

$

1

$

4

$

7

$

70


Net income attributable to non-controlling interests (NCI)


-


-


-


-


-


Net income attributable to equity holders - relating to divested operations

$

2

$

1

$

4

$

7

$

70






For the three months ended

For the year ended



October 31, 2021

October 31, 2021

October 31, 2021


Impact on net income ($ millions except EPS)

vs. July 31, 2021

vs. October 31, 2020

vs. October 31, 2020


Net interest income

$

(3)

$

(10)

$

(100)


Non-interest income


(1)


(4)


(82)


Total Revenue


(4)


(14)


(182)


Provision for credit losses


(3)


(2)


(18)


Non-interest expenses


(2)


(7)


(80)


Income before taxes


1


(5)


(84)


Income tax expense


-


(3)


(21)


Net income

$

1

$

(2)

$

(63)


Net income attributable to equity holders

$

1

$

(2)

$

(63)


Earnings per share (diluted)

$

-

$

-

$

(0.05)


Group Financial Performance

Net income

Q4 2021 vs Q4 2020

Net income was $2,559 million compared to $1,899 million. Adjusted net income was $2,716 million compared to $1,938 million, up 40%, due mainly to lower provision for credit losses as a result of a more favourable credit and macroeconomic outlook.

Q4 2021 vs Q3 2021

Net income was $2,559 million compared to $2,542 million. Adjusted net income was $2,716 million compared to $2,560 million, up 6%, due mainly to lower provision for credit losses, partially offset by lower revenues.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $7,687 million, an increase of $182 million or 2%, due mainly to higher non-interest income, partially offset by lower net interest income.

Q4 2021 vs Q3 2021

Revenues were $7,687 million, a decrease of $70 million or 1%, due mainly to lower non-interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $4,217 million, a decrease of $41 million or 1%. Strong mortgage and commercial loan growth was more than offset by the 3% negative impact of foreign currency translation, lower corporate and unsecured lending balances, and margin compression.

The net interest margin was down five basis points to 2.17%, driven primarily by lower margins in International and Canadian Banking related to changes in business mix and the impact of central bank rate cuts in 2020, partly offset by decreased levels of high quality, lower-margin liquid assets.

Q4 2021 vs Q3 2021

Net interest income was in line with the prior quarter. Loan growth across all business lines was offset by lower margins and the negative impact of foreign currency translation.

The net interest margin of 2.17% was down six basis points due primarily to a lower contribution from asset/liability management activities, as well as lower margins driven by changes in business mix.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $3,470 million, up $223 million or 7%. This was due mainly to higher banking and wealth management revenues, income from associated corporations, and higher investment gains. These were partly offset by lower fixed income trading revenues.

Q4 2021 vs Q3 2021

Non-interest income was down $70 million or 2%. This was due mainly to lower trading revenues and underwriting and advisory fees, which were partially offset by higher income from associated corporations, wealth management revenues, and insurance income.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was $168 million, compared to $1,131 million, a decrease of $963 million or 85%.  The provision for credit losses ratio decreased 63 basis points to 10 basis points.

The provision for credit losses on performing loans was a net reversal of $343 million, a decrease of $639 million. Retail provisions decreased by $364 million, while commercial and corporate loan provisions decreased by $275 million across all business lines. These decreases were driven by the more favourable credit and macroeconomic outlook.

The provision for credit losses on impaired loans was $511 million, compared to $835 million, a decrease of $324 million or 39%, due primarily to lower retail provisions driven by lower credit migration across markets. Commercial and corporate loan provisions decreased $96 million across all business lines driven by lower formations. The provision for credit losses ratio on impaired loans was 31 basis points, a decrease of 23 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $168 million, compared to $380 million, a decrease of $212 million. The provision for credit losses ratio decreased 14 basis points to 10 basis points.

The provision for credit losses on performing loans was a net reversal of $343 million, compared to a net reversal of $461 million last quarter. Approximately $320 million of the provision reversals this quarter was due to reduction of allowances built in the prior year, reflecting the improvement in credit quality and more favourable macroeconomic outlook. The remaining reversal of $23 million was due to credit migration, the majority of which was to impaired loans in the retail portfolio, mainly in International Banking.

The provision for credit losses on impaired loans was $511 million, compared to $841 million, a decrease of $330 million or 39%, due primarily to lower retail provisions, mainly in International Banking, driven by lower credit migration. The provision for credit losses ratio on impaired loans was 31 basis points, a decrease of 22 basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $4,271 million, up $214 million or 5% including $188 million related to restructuring and other provisions. Adjusted non-interest expenses of $4,058 million increased 1%. The increase was due to higher performance-based compensation, professional fees, advertising and technology-related costs to support business growth. Partly offsetting were the positive impact of foreign currency translation, lower personnel and premises costs.

The productivity ratio was 55.6% compared to 54.1%. On an adjusted basis, the productivity ratio was 52.8% compared to 53.3%.

Q4 2021 vs Q3 2021

Non-interest expenses were up $174 million or 4% including $188 million related to restructuring and other provisions. Adjusted non-interest expenses were in line with prior quarter. Lower performance-based compensation and other employee benefits expenses were offset by increases in advertising and business development, professional fees and share-based compensation expenses.

The productivity ratio was 55.6% compared to 52.8%. On an adjusted basis, the productivity ratio was 52.8% compared to 52.5%.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate was 21.2% compared to 18.0% in the same quarter last year. On an adjusted basis, the effective tax rate was 21.5% compared to 18.2% due primarily to changes in business and earnings mix across jurisdictions.

Q4 2021 vs Q3 2021

The effective tax rate was 21.2% compared to 22.5% in the previous quarter. On an adjusted basis, the effective tax rate was 21.5% compared to 22.5% in the previous quarter due primarily to changes in business and earnings mix across jurisdictions.

Capital Ratios

The Bank continues to maintain strong, high quality capital levels which position it well for future business growth and strategic initiatives. The CET1 ratio as at October 31, 2021 was 12.3%, an increase of approximately 50 basis points from the prior year due primarily to strong internal capital generation and the impact from the remeasurement of the employee pension and post-retirement obligations, partly offset by growth in risk-weighted assets, primarily retail mortgages, personal and business lending, a lower CET1 inclusion from declines in Stage 1 and Stage 2 expected credit losses (ECL), OSFI's reversal of its temporary reduction in the SVaR multiplier, and the impact from foreign currency translation on capital requirements. At year end, the CET1 ratio included a benefit of six basis points (October 31, 2020 – 30 basis points) from OSFI transitional adjustment for the partial inclusion of increases in Stage 1 and Stage 2 expected credit losses (ECL) relative to their pre-crisis baseline levels as at January 31, 2020.

The Bank's Tier 1 capital ratio was 13.9% as at October 31, 2021, an increase of approximately 60 basis points from the prior year, due primarily to the issuance of $1.25 billion and USD $600 million of Tier 1 qualifying Limited Recourse Capital Notes (LRCN), and the above noted impacts to the CET1 capital ratio, partly offset by the redemptions of $850 million of Basel III compliant NVCC preferred shares, a redemption of $409 million of non-qualifying preferred shares, and other regulatory adjustments.

The Total capital ratio was 15.9% as at October 31, 2021, an increase of approximately 40 basis points from 2020, due primarily to the above noted changes to the Tier 1 capital ratio, partly offset by the redemption of $750 million of subordinated debentures and other regulatory adjustments to Tier 2 capital.

The Leverage ratio was 4.8%, an increase of approximately 10 basis points in 2021 as higher Tier 1 capital was partly offset by growth in the Bank's on and off-balance sheet assets.

The Bank's capital ratios continue to be well in excess of OSFI's minimum capital ratio requirements for 2021 of 10.5%, 12.0% and 14.0% for CET1, Tier 1 and Total Capital, respectively. The Bank was well above the OSFI minimum Leverage ratio as at October 31, 2021.

Business Segment Review


Canadian Banking



For the three months ended

For the year ended

(Unaudited)($ millions)


October 31 


July 31 


October 31 


October 31 


October 31 

(Taxable equivalent basis)(1)


2021


2021


2020


2021


2020

Reported Results











Net interest income

$

2,082

$

2,030

$

1,954

$

8,030

$

7,838

Non-interest income(2)


749


765


612


2,868


2,461

Total revenue


2,831


2,795


2,566


10,898


10,299

Provision for credit losses


(96)


69


330


333


2,073

Non-interest expenses


1,251


1,267


1,186


4,951


4,811

Income tax expense


438


380


272


1,459


879

Net income

$

1,238

$

1,079

$

778

$

4,155

$

2,536

Net income attributable to

equity holders of the Bank

$

1,238

$

1,079

$

778

$

4,155

$

2,536

Other measures











Return on equity(3)


29.4%


26.1%


18.4%


25.2%


15.1%

Average assets ($ billions)

$

398

$

384

$

363

$

381

$

359

Average liabilities ($ billions)

$

318

$

317

$

295

$

313

$

277

(1)

Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2)

Includes net income from investments in associated corporations for the three months ended October 31, 2021 - $18 (July 31, 2021 - $23; October

31, 2020 - $15) and for the year ended October 31, 2021 - $87 (October 31, 2020 - $56).

(3)

Refer to Non-GAAP measures on page 3.


 


For the three months ended

For the year ended

(Unaudited)($ millions)


October 31 


July 31 


October 31 


October 31 


October 31 

(Taxable equivalent basis)


2021


2021


2020


2021


2020

Adjusted Results(1)











Net interest income

$

2,082

$

2,030

$

1,954

$

8,030

$

7,838

Non-interest income


749


765


612


2,868


2,461

Total revenue


2,831


2,795


2,566


10,898


10,299

Provision for credit losses(2)


(96)


69


330


333


2,002

Non-interest expenses(3)


1,245


1,262


1,180


4,929


4,789

Income tax expense


440


381


274


1,465


904

Net income

$

1,242

$

1,083

$

782

$

4,171

$

2,604

(1)

Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2)

Includes adjustment for Allowance for credit losses – Additional scenario of $71 in the first quarter of 2020.

(3)

Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2021$6 (July 31, 2021$5; October 31, 2020$6) and for the year ended October 31, 2021$22 (October 31, 2020$22).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $1,238 million, compared to $778 million. Adjusted net income attributable to equity holders was $1,242 million, an increase of $460 million or 59%. The increase was due primarily to lower provision for credit losses and higher revenues, partly offset by higher non-interest expenses.

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $159 million or 15%. The increase was due primarily to lower provision for credit losses, higher revenues, and lower non-interest expenses.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $2,831 million, up $265 million or 10%, due to higher non-interest income and net interest income.

Q4 2021 vs Q3 2021

Revenues increased $36 million or 1%, due primarily to higher net interest income partially offset by lower non-interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income of $2,082 million increased $128 million or 7%, due primarily to strong loan growth, partially offset by margin compression. The net interest margin declined six basis points to 2.20%, primarily driven by changes in business mix, mainly from higher residential mortgages and lower personal loans and credit cards.

Q4 2021 vs Q3 2021

Net interest income increased $52 million or 3%, driven by strong loan growth, partially offset by margin compression. The net interest margin declined three basis points to 2.20%, primarily driven by changes in business mix, with residential mortgage growth outpacing credit card and personal loan growth, and lower deposit growth.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income of $749 million increased $137 million or 22%. The increase was due primarily to higher banking revenue and mutual fund distribution fees, and elevated private equity gains.

Q4 2021 vs Q3 2021

Non-interest income decreased $16 million or 2% due primarily to lower private equity gains and income from associated corporations, partially offset by higher banking revenue, insurance income, and mutual fund distribution fees.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was a net reversal of $96 million, compared to a provision of $330 million, a decrease of $426 million.  The provision for credit losses ratio decreased 47 basis points to negative 10 basis points.

Provision for credit losses on performing loans was a net reversal of $195 million, a decrease of $287 million of which $148 million was related to retail, driven by the more favourable credit and macroeconomic outlook. Commercial provisions decreased $139 million due primarily to the more favourable macroeconomic outlook.

Provision for credit losses on impaired loans was $99 million, compared to $238 million, a decrease of $139 million due primarily to lower retail provisions driven by lower delinquencies. The provision for credit losses ratio on impaired loans was 10 basis points, a decrease of 17 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was a net reversal of $96 million, a decrease of $165 million. The provision for credit losses ratio decreased 17 basis points to negative 10 basis points.

Provision for credit losses on performing loans was a net reversal of $195 million, compared to a net reversal of $66 million, with a decrease of $86 million in retail provisions and $43 million in commercial provisions. The decrease was driven by the more favourable credit and macroeconomic outlook.

Provision for credit losses on impaired loans was $99 million compared to $135 million, a decrease of $36 million or 27% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans was 10 basis points, a decrease of four basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $1,251 million, up $65 million or 6%, due largely to higher technology and advertising and business development costs to support business growth.

Q4 2021 vs Q3 2021

Non-interest expenses were down $16 million or 1%, driven by lower personnel costs, partly offset by higher advertising and business development costs.

Provision for income taxes

The effective tax rate was 26.2% compared to 26.0% in the prior year and 26.0% in the prior quarter.

Average Assets

Q4 2021 vs Q4 2020

Average assets increased $35 billion or 10% to $398 billion. The growth included $30 billion or 13% in residential mortgages and $7 billion or 11% in business loans and acceptances, partially offset by a decline of $1 billion or 1% in personal loans.

Q4 2021 vs Q3 2021

Average assets increased $14 billion or 4%. The growth included $12 billion or 5% in residential mortgages and $1 billion or 2% in business loans and acceptances.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities increased $23 billion or 8% to $318 billion. The growth included $17 billion or 18% in non-personal deposits and $3 billion or 1% in personal deposits.

Q4 2021 vs Q3 2021

Average liabilities increased $1 billion to $318 billion. The growth of 2% in non-personal deposits was largely offset by a decline of 1% in personal deposits.

International Banking












For the three months ended

For the year ended

(Unaudited)($ millions)


October 31 


July 31 


October 31 


October 31 


October 31 

(Taxable equivalent basis)(1)


2021


2021


2020


2021


2020

Reported Results











Net interest income

$

1,589

$

1,586

$

1,785

$

6,625

$

7,603

Non-interest income(2)(3)


728


776


763


2,993


3,207

Total revenue


2,317


2,362


2,548


9,618


10,810

Provision for credit losses


314


339


736


1,574


3,613

Non-interest expenses


1,259


1,299


1,424


5,254


5,943

Income tax expense


137


160


55


635


182

Net income

$

607

$

564

$

333

$

2,155

$

1,072

Net income attributable to non-controlling interests in












subsidiaries


79


78


70


332


92

Net income attributable to equity holders of the Bank

$

528

$

486

$

263

$

1,823

$

980

Other measures











Return on equity(4)


12.0%


11.1%


5.6%


10.4%


5.0%

Average assets ($ billions)

$

192

$

191

$

202

$

194

$

206

Average liabilities ($ billions)

$

146

$

146

$

153

$

149

$

155

(1)

Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2)

Includes net income from investments in associated corporations for the three months ended October 31, 2021 - $52 (July 31, 2021 - $52; October 31, 2020 - $38) and for the year ended October 31, 2021 - $206 (October 31, 2020 - $243).

(3)

Includes one additional month of earnings relating to Mexico of $51 (after tax and NCI $37) in the first quarter of 2020.

(4)

Refer to Non-GAAP Measures on page 3.



 


For the three months ended

For the year ended

(Unaudited)($ millions)


October 31 


July 31 


October 31 


October 31 


October 31 

(Taxable equivalent basis)


2021


2021


2020


2021


2020

Adjusted Results(1)











Net interest income

$

1,589

$

1,586

$

1,785

$

6,625

$

7,603

Non-interest income


728


776


763


2,993


3,207

Total revenue


2,317


2,362


2,548


9,618


10,810

Provision for credit losses(2)


314


339


736


1,574


3,536

Non-interest expenses(3)(4)


1,249


1,288


1,397


5,209


5,742

Income tax expense


140


164


62


648


260

Net income

$

614

$

571

$

353

$

2,187

$

1,272

Net income attributable to non-controlling interests in












subsidiaries


79


78


70


332


124

Net income attributable to equity holders of the Bank

$

535

$

493

$

283

$

1,855

$

1,148

(1)

Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2)

Includes adjustment for Allowance for credit losses - Additional scenario of $77 in the first quarter of 2020.

(3)

Includes adjustment for Integration costs for the three months ended October 31, 2020 - $16 and for the year ended October 31, 2020 - $154.

(4)

Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2021$10 (July 31, 2021$11; October 31, 2020$11) and for the year ended October 31, 2021$45 (October 31, 2020$47).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $528 million, compared to $263 million. Adjusted net income attributable to equity holders increased to $535 million from $283 million. This increase was driven by lower provision for credit losses and lower non-interest expenses, partially offset by lower revenues, higher income taxes, and the negative impact of foreign currency translation. 

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $42 million or 9%. Adjusted net income attributable to equity holders increased by $42 million or 8%. This was due largely to lower non-interest expenses, provision for credit losses and income taxes, partially offset by lower revenues.

Financial Performance on a Constant Dollar Basis

The discussion below on the results of operations is on a constant dollar basis. Constant dollar basis excludes the impact of foreign currency translation, which is a non-GAAP financial measure (refer to Non-GAAP Measures on page 10). The Bank believes that reporting in constant dollar is useful for readers in assessing ongoing business performance. Ratios are on a reported basis.

Reported results on a constant dollar basis



For the three months ended



For the year ended

(Unaudited)($ millions)


October 31 



July 31 



October 31 



October 31 



October 31 


(Taxable equivalent basis)


2021



2021



2020



2021



2020


Net interest income

$

1,589


$

1,575


$

1,668


$

6,625


$

7,060


Non-interest income


728



770



723



2,993



3,015


Total revenue


2,317



2,345



2,391



9,618



10,075


Provision for credit losses


314



335



674



1,574



3,369


Non-interest expenses


1,259



1,295



1,358



5,254



5,603


Income tax expense


137



159



51



635



159


Net income

$

607


$

556


$

308


$

2,155


$

944


Net income attributable to non-controlling interests in

















subsidiaries


79



76



64



332



87


Net income attributable to equity holders of the Bank

$

528


$

480


$

244


$

1,823


$

857






















Adjusted results on a constant dollar basis



For the three months ended



For the year ended

(Unaudited)($ millions)


October 31 



July 31 



October 31 



October 31 



October 31 


(Taxable equivalent basis)


2021



2021



2020



2021



2020


Net interest income

$

1,589


$

1,575


$

1,668


$

6,625


$

7,060


Non-interest income


728



770



723



2,993



3,015


Total revenue


2,317



2,345



2,391



9,618



10,075


Provision for credit losses


314



335



674



1,574



3,297


Non-interest expenses


1,249



1,285



1,333



5,209



5,414


Income tax expense


140



161



57



648



231


Net income

$

614


$

564


$

327


$

2,187


$

1,133


Net income attributable to non-controlling interests in

















subsidiaries


79



76



64



332



117


Net income attributable to equity holders of the Bank

$

535


$

488


$

263


$

1,855


$

1,016


Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $528 million, compared to $244 million. Adjusted net income attributable to equity holders increased to $535 million from $263 million. This increase was driven by lower provision for credit losses and lower non-interest expenses, partially offset by lower revenues, and higher income taxes.

Q4 2021 vs Q3 2021

Net income attributable to equity holders increased $48 million or 10% from $480 million. Adjusted net income attributable to equity holders increased by $47 million or 10%, compared to $488 million last quarter. This was due largely to lower non-interest expenses, lower provision for credit losses and lower income taxes, partially offset by lower revenues.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $2,317 million, a decrease of $74 million or 3%, driven primarily by lower net interest income, partially offset by higher non-interest income. 

Q4 2021 vs Q3 2021

Revenues decreased by $28 million, or 1%, driven primarily by lower non-interest income, partially offset by higher net interest income.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $1,589 million, down 5%, driven by margin compression and lower personal loan and credit card balances, partially offset by growth in mortgages and commercial loans. Net interest margin declined by 28 basis points to 3.69% due primarily to changes in business mix from lower credit card balances.

Q4 2021 vs Q3 2021

Net interest income increased $14 million, up 1%, due primarily to an increase in commercial loans and residential mortgages. Net interest margin declined by three basis points to 3.69% due primarily to changes in business mix, mainly from a 2% decline in credit card balances and a 4% increase in commercial loans.

Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $728 million, up 1%, due to higher banking fees and income from associated corporations, partially offset lower investment gains, and card fees.

Q4 2021 vs Q3 2021

Non-interest income decreased $42 million, or 5% due to lower investment gains, capital market revenues and insurance services income, partially offset by higher banking fees. 

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was $314 million, compared to $674 million, a decrease of $360 million or 53%. The provision for credit losses ratio decreased 116 basis points to 91 basis points.

Provision for credit losses on performing loans was a net reversal of $93 million, a decrease of $246 million of which $194 million related to retail portfolio mainly driven by credit migration and the more favourable macroeconomic outlook this quarter. The remaining decrease was driven by lower commercial provisions due to the more favourable macroeconomic outlook.

Provision for credit losses on impaired loans was $407 million compared to $521 million, a decrease of $114 million or 22% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans was 118 basis points, a decrease of 40 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $314 million, compared to $335 million, a decrease of $21 million or 6%. The provision for credit losses ratio decreased nine basis points to 91 basis points.

Provision for credit losses on performing loans was a net reversal of $93 million, compared to a net reversal of $361 million last quarter. The provision reversals were mainly in the retail portfolio driven by the more favourable macroeconomic outlook and credit migration this quarter.

Provision for credit losses on impaired loans was $407 million compared to $696 million, a decrease of 41% due primarily to lower retail provisions driven by lower formations. The provision for credit losses ratio on impaired loans decreased 90 basis points to 118 basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $1,259 million compared to $1,358 million last year, down $99 million or 7%. On an adjusted basis, non-interest expenses were $1,249 million, down $84 million or 6%.  The decrease was driven by lower salaries and employee benefits, technology costs, premises costs and professional fees.

Q4 2021 vs Q3 2021

Non-interest expenses were $1,259 million compared to $1,295 million. Adjusted non-interest expenses decreased $36 million or 3% from $1,285 million last quarter. The decrease was driven by lower salaries and employee benefits, technology costs, and premises costs, mainly in the Caribbean and Central America region.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate was 18.4%, compared to 14.2% last year. On an adjusted basis, the effective tax rate was 18.6%, compared to 15.0% last year, due primarily to higher provision for credit losses in entities that operate in higher tax rate jurisdictions recorded last year. 

Q4 2021 vs Q3 2021

The effective tax rate was 18.4%, compared to 22.1% last quarter due primarily to higher inflationary adjustments in Mexico and Chile.

Average Assets

Q4 2021 vs Q4 2020

Average assets of $192 billion, increased $1 billion. Total loan growth of 2% was driven by a 3% increase in commercial loans and 8% increase in residential mortgages, partially offset by a 9% decrease in personal loans and credit card balances.

Q4 2021 vs Q3 2021

Average assets increased by 2%. Loans grew by 3% driven by a 4% increase in commercial loans and 3% increase in residential mortgages.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities of $146 billion were up 1%, while total deposits were flat.

Q4 2021 vs Q3 2021

Average liabilities increased by $842 million or 1%, while total deposits decreased 1% driven by a decline of non-personal deposits.

Global Wealth Management
















For the three months ended


For the year ended

(Unaudited)($ millions)


October 31 



July 31 



October 31 


October 31 



October 31 

(Taxable equivalent basis)(1)


2021



2021



2020


2021



2020

Reported Results














Net interest income

$

161


$

160


$

144

$

628


$

575

Non-interest income


1,186



1,175



1,021


4,752



4,009

Total revenue


1,347



1,335



1,165


5,380



4,584

Provision for credit losses


1



(1)



3


2



7

Non-interest expenses


824



812



726


3,255



2,878

Income tax expense


135



132



111


549



437

Net income

$

387


$

392


$

325

$

1,574


$

1,262

Net income attributable to non-controlling interests in















subsidiaries


2



2



2


9



10

Net income attributable to

equity holders of the Bank

$

385


$

390


$

323

$

1,565


$

1,252

Other measures














Return on equity(2)


16.3%



16.5%



13.9%


16.7%



13.5%

Assets under administration ($ billions)(3)

$

597


$

582


$

500

$

597


$

500

Assets under management ($ billions)(3)

$

346


$

341


$

290

$

346


$

290

(1)

Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2021 Annual Report to Shareholders.

(2)

Refer to Non-GAAP measures on page 3.

(3)

Prior period amounts have been restated to appropriately reflect certain intercompany items.
















 



For the three months ended


For the year ended

(Unaudited)($ millions)


October 31 



July 31 



October 31 


October 31 



October 31 

(Taxable equivalent basis)


2021



2021



2020


2021



2020

Adjusted Results(1)














Net interest income

$

161


$

160


$

144

$

628


$

575

Non-interest income


1,186



1,175



1,021


4,752



4,009

Total revenue


1,347



1,335



1,165


5,380



4,584

Provision for credit losses(2)


1



(1)



3


2



6

Non-interest expenses(3)(4)


815



804



713


3,219



2,818

Income tax expense


137



133



114


558



453

Net income

$

394


$

399


$

335

$

1,601


$

1,307

Net income attributable to non-controlling interests in















subsidiaries


2



2



2


9



10

Net income attributable to equity holders of the Bank

$

392


$

397


$

333

$

1,592


$

1,297

(1)

Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2)

Includes adjustment for Allowance for credit losses - Additional scenario of $1 in the first quarter of 2020.

(3)

Includes adjustment for Integration costs for the three months ended October 31, 2020 - $4 and for the year ended October 31, 2020 - $23.

(4)

Includes adjustment for Amortization of acquisition-related intangible assets, excluding software for the three months ended October 31, 2021$9 (July 31, 2021$8; October 31, 2020$9) and for the year ended October 31, 2021$36 (October 31, 2020$37).

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $385 million, an increase of $62 million or 20%. Adjusted net income attributable to equity holders increased to $392 million, up $59 million or 18%, due primarily to higher mutual fund fees and brokerage revenues, partially offset by higher volume-related expenses.

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased $5 million or 1%, due primarily to lower brokerage fees from reduced iTrade volumes, partially offset by higher mutual fund fees.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $1,347 million, up $182 million or 16% due primarily to higher fee income driven by growth in client assets from market appreciation and higher net sales, higher brokerage revenues, and higher net interest income from growth in Private Banking loans.

Q4 2021 vs Q3 2021

Revenues were up $12 million or 1% due primarily to higher fee income driven by growth in client assets from market appreciation and higher net sales.

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was $1 million, a decrease of $2 million from last year. The provision for credit losses ratio was two basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was $1 million, an increase of $2 million. The provision for credit losses ratio was two basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses of $824 million were up $98 million or 13%, driven mainly by higher volume-related expenses, primarily performance-based compensation and distribution expenses, along with higher technology costs to support business growth initiatives.

Q4 2021 vs Q3 2021

Non-interest expenses were up $12 million or 1%, due largely to higher technology costs to support business growth initiatives.

Provision for income taxes

The effective tax rate was 25.9% compared to 25.6% in the prior year and 25.2% in the prior quarter.

Assets under management (AUM) and assets under administration (AUA)

Q4 2021 vs Q4 2020

Assets under management of $346 billion increased $56 billion or 19%, while assets under administration of $597 billion increased $97 billion or 19%, due primarily to higher net sales and market appreciation.

Q4 2021 vs Q3 2021

Assets under management increased $5 billion or 1%, and assets under administration increased $15 billion or 2%, due primarily to higher net sales and market appreciation.

Global Banking and Markets
















For the three months ended


For the year ended

(Unaudited)($ millions)


October 31 



July 31 



October 31 


October 31 



October 31 

(Taxable equivalent basis)(1)


2021



2021



2020


2021



2020

Reported Results














Net interest income

$

365


$

363


$

350

$

1,436


$

1,435

Non-interest income


812



890



860


3,587



3,947

Total revenue


1,177



1,253



1,210


5,023



5,382

Provision for credit losses


(50)



(27)



62


(100)



390

Non-interest expenses


591



620



583


2,458



2,473

Income tax expense


134



147



105


590



564

Net income

$

502


$

513


$

460

$

2,075


$

1,955

Net income attributable to equity
holders of the Bank

$

502


$

513


$

460

$

2,075


$

1,955

Other measures














Return on equity(2)


15.5%



16.1%



14.6%


16.5%



14.8%

Average assets ($ billions)

$

409


$

401


$

389

$

401


$

412

Average liabilities ($ billions)

$

382


$

373


$

387

$

385


$

379

(1)

Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2021 Annual Report to

Shareholders.

(2)

Refer to Non-GAAP measures on page 3.


 



For the three months ended


For the year ended

(Unaudited)($ millions)


October 31 



July 31 



October 31 


October 31 



October 31 

(Taxable equivalent basis)


2021



2021



2020


2021



2020

Adjusted Results(1)














Net interest income

$

365


$

363


$

350

$

1,436


$

1,435

Non-interest income(2)


812



890



860


3,587



4,049

Total revenue


1,177



1,253



1,210


5,023



5,484

Provision for credit losses(3)


(50)



(27)



62


(100)



384

Non-interest expenses


591



620



583


2,458



2,473

Income tax expense


134



147



105


590



593

Net income

$

502


$

513


$

460

$

2,075


$

2,034

(1)

Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2)

Includes adjustment for derivatives valuation of $102 in the first quarter of 2020.

(3)

Includes adjustment for Allowance for credit losses - Additional scenario of $6 in the first quarter of 2020.

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was $502 million, an increase of $42 million or 9%, due mainly to higher net interest income and lower provision for credit losses, partially offset by lower non-interest income, higher non-interest expenses, and the negative impact of foreign currency translation. 

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased by $11 million or 2%, due mainly to lower non-interest income, partially offset by higher net interest income, lower provision for credit losses, lower non-interest expenses and the positive impact of foreign currency translation.

Total revenue

Q4 2021 vs Q4 2020

Revenues were $1,177 million, a decrease of $33 million or 3% due primarily to lower trading-related revenues and the negative impact of foreign currency translation, partially offset by an increase in net interest income.

Q4 2021 vs Q3 2021

Revenues decreased by $76 million or 6% due mainly to lower non-interest income including lower trading-related revenue and underwriting and advisory fees, partially offset by higher net interest income and the positive impact of foreign currency translation.

Net interest income

Q4 2021 vs Q4 2020

Net interest income was $365 million, an increase of $15 million or 4%, due mainly to higher lending margins, partially offset by  lower lending volumes and the unfavourable impact of foreign currency translation.

Q4 2021 vs Q3 2021

Net interest income increased by $2 million or 1%, due mainly to higher lending volumes.

 Non-interest income

Q4 2021 vs Q4 2020

Non-interest income was $812 million, a decrease of $48 million or 6%, due mainly to lower fixed income trading-related revenues and the negative impact of foreign currency translation, partially offset by higher equities trading-related revenues and higher advisory fees.

Q4 2021 vs Q3 2021

Non-interest income decreased by $78 million or 9% due mainly to lower underwriting and advisory fees, and lower trading-related revenues primarily fixed income. 

Provision for credit losses

Q4 2021 vs Q4 2020

The provision for credit losses was a net reversal of $50 million, a decrease of $112 million. The provision for credit losses ratio was negative 18 basis points, a decrease of 42 basis points.

Provision for credit losses on performing loans was a net reversal of $52 million, a decrease of $80 million due primarily to an improving macroeconomic outlook.

Provision for credit losses on impaired loans was $2 million, a decrease of $32 million due primarily to lower provisions in the Energy portfolio. The provision for credit losses ratio on impaired loans was one basis point, a decrease of 12 basis points.

Q4 2021 vs Q3 2021

The provision for credit losses was a net reversal of $50 million, compared to a net reversal of $27 million last quarter, a decrease of $23 million. The provision for credit losses ratio was negative 18 basis points, a decrease of 7 basis points.

Provision for credit losses on performing loans was a net reversal of $52 million compared to a net reversal of $33 million last quarter. The provision reversals were driven primarily due to an improving macroeconomic outlook.

Provision for credit losses on impaired loans was $2 million compared to $6 million, a decrease of $4 million. The provision for credit losses ratio on impaired loans was one basis point, a decrease of two basis points.

Non-interest expenses

Q4 2021 vs Q4 2020

Non-interest expenses were $591 million, up $8 million or 1%, due mainly to increases in technology costs to support business development, partially offset by lower personnel costs and impact of foreign currency translation. 

Q4 2021 vs Q3 2021

Non-interest expenses decreased $29 million or 5% due mainly to lower personnel costs, partially offset by higher technology costs to support business development.

Provision for income taxes

Q4 2021 vs Q4 2020

The effective tax rate for the quarter was 21.0% compared to 18.5% in the prior year.  The changes were due mainly to the change in earnings mix across jurisdictions.

Q4 2021 vs Q3 2021

The effective tax rate for the quarter was 21.0% compared to 22.3% in the prior year.  The changes were due mainly to the change in earnings mix across jurisdictions.

Average Assets

Q4 2021 vs Q4 2020

Average assets were $409 billion, an increase of $20 billion or 5%, due mainly to an increase in trading securities partially offset by lower loans and the negative impact of foreign currency translation. 

Q4 2021 vs Q3 2021

Average assets increased $8 billion or 2%, due mainly to an increase in loans and securities purchased under resale agreements and positive impact of foreign currency translation.

Average Liabilities

Q4 2021 vs Q4 2020

Average liabilities of $382 billion were lower by $5 billion or 1%, due mainly to lower securities sold under repurchase agreements, decreases in derivative-related liabilities and the negative impact of foreign currency translation, partially offset by growth in deposits.

Q4 2021 vs Q3 2021

Average liabilities increased $9 billion or 2%, due mainly to higher deposits, higher securities sold under repurchase agreements and the positive impact of foreign currency translation.

Other

















For the three months ended



For the year ended

(Unaudited)($ millions)


October 31 



July 31 



October 31 



October 31 



October 31 

(Taxable equivalent basis)(1)


2021



2021



2020



2021



2020

Reported Results















Net interest income

$

20


$

78


$

25


$

242


$

(131)

Non-interest income


(5)



(66)



(9)



91



392

Total revenue


15



12



16



333



261

Provision for credit losses


(1)



-



-



(1)



1

Non-interest expenses


346



99



138



700



751

Income tax expense


(155)



(81)



(125)



(362)



(519)

Net income (loss)

$

(175)


$

(6)


$

3


$

(4)


$

28

Net income (loss) attributable to

non-controlling interests
















in subsidiaries


(11)



1



-



(10)



(27)

Net income (loss) attributable to

equity holders of the Bank

$

(164)


$

(7)


$

3


$

6


$

55

Other measures















Average assets ($ billions)

$

144


$

143


$

159


$

152


$

158

Average liabilities ($ billions)

$

206


$

194


$

195


$

193


$

240

(1)

Results are presented on a taxable equivalent basis. Refer to Business Line Overview section of the Bank's 2021 Annual Report to

Shareholders.


 



For the three months ended



For the year ended

(Unaudited)($ millions)


October 31 



July 31 



October 31 



October 31 



October 31 

(Taxable equivalent basis)


2021



2021



2020



2021



2020

Adjusted Results(1)















Net interest income

$

20


$

78


$

25


$

242


$

(131)

Non-interest income(2)(3)


(5)



(66)



(9)



91



93

Total revenue


15



12



16



333



(38)

Provision for credit losses


(1)



-



-



(1)



1

Non-interest expenses(3)(4)(5)


158



99



130



512



692

Income tax expense


(106)



(81)



(122)



(313)



(475)

Net income (loss)

$

(36)


$

(6)


$

8


$

135


$

(256)

Net income (loss) attributable to
non-controlling interests
















in subsidiaries


(1)



1



-



-



1

Net income  (loss) attributable to
equity holders of the Bank

$

(35)


$

(7)


$

8


$

135


$

(257)

(1)

Refer to Non-GAAP Measures for the reconciliation of reported and adjusted results.

(2)

Includes adjustment for derivatives valuation of $14 in the first quarter of 2020.

(3)

Includes adjustment for Net (gain)/loss on divestitures for the three months ended October 31, 2020 - $8 and for the year ended October 31,

2020 - $(298).

(4)

Includes adjustment for software impairment charge of $44 in the first quarter of 2020.

(5)

Includes adjustment for restructuring and other provisions of $188 in the fourth quarter of 2021.

The Other segment includes Group Treasury, smaller operating segments, Net gain/loss on divestitures and other corporate items which are not allocated to a business line.

Net income

Q4 2021 vs Q4 2020

Net income attributable to equity holders was a net loss of $164 million compared to a net income of $3 million in the prior year. The decrease of $167 million was due primarily to the impact of the restructuring and other provisions of $129 million this quarter. Adjusted net income attributable to equity holders was a loss of $35 million, down $43 million due to higher expenses and higher income taxes.

Q4 2021 vs Q3 2021

Net income attributable to equity holders decreased $157 million from the prior quarter, due mainly to the impact of the restructuring and other provisions this quarter. Adjusted net income decreased $28 million, due to higher expenses.

Consolidated Statement of Financial Position



As at

(Unaudited) ($ millions)



October 31


July 31


October 31



2021


2021


2020

Assets








Cash and deposits with financial institutions


$

86,323

$

75,881

$

76,460

Precious metals



755


759


1,181

Trading assets








Securities



137,148


133,575


108,331

Loans



8,113


6,793


8,352

Other



1,051


752


1,156





146,312


141,120


117,839

Securities purchased under resale agreements and securities borrowed



127,739


129,013


119,747

Derivative financial instruments



42,302


41,904


45,065

Investment securities



75,199


81,734


111,389

Loans








Residential mortgages



319,678


310,370


284,684

Personal loans



91,540


91,544


93,758

Credit cards



12,450


12,194


14,797

Business and government



218,944


219,720


217,663





642,612


633,828


610,902

Allowance for credit losses



5,626


6,079


7,639





636,986


627,749


603,263

Other








Customers' liability under acceptances, net of allowance



20,404


17,023


14,228

Property and equipment



5,621


5,538


5,897

Investments in associates



2,604


2,504


2,475

Goodwill and other intangible assets



16,604


16,703


17,015

Deferred tax assets



2,051


2,108


2,185

Other assets



21,944


21,393


19,722





69,228


65,269


61,522

Total assets


$

1,184,844

$

1,163,429

$

1,136,466

Liabilities








Deposits








Personal


$

243,551

$

247,462

$

246,135

Business and government



511,348


503,314


464,619

Financial institutions



42,360


43,610


40,084





797,259


794,386


750,838

Financial instruments designated at fair value through profit or loss



22,493


21,961


18,899

Other








Acceptances



20,441


17,085


14,305

Obligations related to securities sold short



40,954


43,276


31,902

Derivative financial instruments



42,203


38,894


42,247

Obligations related to securities sold under repurchase agreements and securities lent



123,469


112,516


137,763

Subordinated debentures



6,334


6,418


7,405

Other liabilities



58,799


56,732


62,604





292,200


274,921


296,226

Total liabilities



1,111,952


1,091,268


1,065,963

Equity








Common equity








Common shares



18,507


18,493


18,239

Retained earnings



51,354


50,044


46,345

Accumulated other comprehensive income (loss)



(5,333)


(3,986)


(2,125)

Other reserves



222


169


360

Total common equity



64,750


64,720


62,819

Preferred shares and other equity instruments



6,052


5,299


5,308

Total equity attributable to equity holders of the Bank



70,802


70,019


68,127

Non-controlling interests in subsidiaries



2,090


2,142


2,376

Total equity



72,892


72,161


70,503

Total liabilities and equity


$

1,184,844

$

1,163,429

$

1,136,466

Consolidated Statement of Income



For the three months ended

For the year ended

(Unaudited) ($ millions)


October 31


July 31


October 31


October 31


October 31


2021


2021


2020


2021


2020

Revenue











Interest income(1)

Loans

$

5,751

$

5,648

$

6,104

$

23,159

$

26,977

Securities


343


354


458


1,467


2,035

Securities purchased under resale agreements and securities borrowed


45


49


51


178


286

Deposits with financial institutions


47


50


39


182


414




6,186


6,101


6,652


24,986


29,712

Interest expense











Deposits


1,513


1,540


2,055


6,465


10,731

Subordinated debentures


46


43


50


180


240

Other


410


301


289


1,380


1,421




1,969


1,884


2,394


8,025


12,392

Net interest income


4,217


4,217


4,258


16,961


17,320

Non-interest income











Card revenues


187


177


181


749


789

Banking services fees


414


400


376


1,598


1,540

Credit fees


368


382


345


1,485


1,348

Mutual funds


605


580


506


2,394


1,945

Brokerage fees


265


263


225


1,039


902

Investment management and trust


251


252


238


994


946

Underwriting and other advisory


144


198


152


724


690

Non-trading foreign exchange


179


194


169


787


708

Trading revenues


409


478


498


2,033


2,411

Net gain on sale of investment securities


83


80


182


419


607

Net income from investments in associated corporations


96


73


49


339


242

Insurance underwriting income, net of claims


102


83


120


398


497

Other fees and commissions


153


171


151


677


688

Other


214


209


55


655


703




3,470


3,540


3,247


14,291


14,016

Total revenue


7,687


7,757


7,505


31,252


31,336

Provision for credit losses


168


380


1,131


1,808


6,084




7,519


7,377


6,374


29,444


25,252

Non-interest expenses











Salaries and employee benefits


2,054


2,131


2,071


8,541


8,624

Premises and technology


598


597


607


2,351


2,408

Depreciation and amortization


383


373


407


1,511


1,546

Communications


93


86


93


369


418

Advertising and business development


126


93


96


404


445

Professional


242


211


184


789


753

Business and capital taxes


120


122


123


511


517

Other


655


484


476


2,142


2,145




4,271


4,097


4,057


16,618


16,856

Income before taxes


3,248


3,280


2,317


12,826


8,396

Income tax expense


689


738


418


2,871


1,543

Net income

$

2,559

$

2,542

$

1,899

$

9,955

$

6,853

Net income attributable to non-controlling interests in subsidiaries


70


81


72


331


75

Net income attributable to equity holders of the Bank

$

2,489

$

2,461

$

1,827

$

9,624

$

6,778

Preferred shareholders and other equity instrument holders


78


35


82


233


196

Common shareholders

$

2,411

$

2,426

$

1,745

$

9,391

$

6,582

Earnings per common share (in dollars)











Basic

$

1.98

$

2.00

$

1.44

$

7.74

$

5.43

Diluted


1.97


1.99


1.42


7.70


5.30

Dividends paid per common share (in dollars)


0.90


0.90


0.90


3.60


3.60

(1)

Includes interest income on financial assets measured at amortized cost and FVOCI, calculated using the effective interest method, of $6,080 for the three months ended October 31, 2021 (July 31, 2021 - $5,989; October 31, 2020 - $6,510) and for the year ended October 31, 2021 - $24,547 (October 31, 2020 - $29,173).

Consolidated Statement of Comprehensive Income



For the three months ended


For the year ended

(Unaudited) ($ millions)


October 31


July 31


October 31


October 31


October 31


2021


2021


2020


2021


2020

Net income

$

2,559

$

2,542

$

1,899

$

9,955

$

6,853

Other comprehensive income (loss)











Items that will be reclassified subsequently to net income











Net change in unrealized foreign currency translation gains (losses):











Net unrealized foreign currency translation gains (losses)


(1,059)


(94)


(548)


(4,515)


(2,433)

Net gains (losses) on hedges of net investments in foreign
operations


232


(56)


6


1,307


347

Income tax expense (benefit):











Net unrealized foreign currency translation gains (losses)


(9)


2


16


(31)


62

Net gains (losses) on hedges of net investments in foreign operations


61


(15)


1


343


91



(879)


(137)


(559)


(3,520)


(2,239)

Net change in fair value due to change in debt instruments measured at fair











value through other comprehensive income:











Net gains (losses) in fair value


(647)


(18)


(235)


(1,341)


1,495

Reclassification of net (gains) losses to net income


294


(128)


139


522


(1,091)

Income tax expense (benefit):











Net gains (losses) in fair value


(189)


11


(59)


(346)


387

Reclassification of net (gains) losses to net income


75


(33)


37


127


(276)



(239)


(124)


(74)


(600)


293

Net change in gains (losses) on derivative instruments designated as cash flow











      hedges:











Net gains (losses) on derivative instruments designated as cash flow
hedges


(1,754)


230


(661)


(1,267)


2,543

Reclassification of net (gains) losses to net income


830


72


385


176


(2,604)

Income tax expense (benefit):











Net gains (losses) on derivative instruments designated as cash

flow hedges


(518)


(10)


(181)


(471)


689

Reclassification of net (gains) losses to net income


272


81


106


186


(718)



(678)


231


(201)


(806)


(32)

Other comprehensive income (loss) from investments in associates


6


4


7


37


(2)

Items that will not be reclassified subsequently to net income











Net change in remeasurement of employee benefit plan asset and

liability:











Actuarial gains (losses) on employee benefit plans


398


(111)


291


1,815


(620)

Income tax expense (benefit)


106


(32)


76


480


(155)



292


(79)


215


1,335


(465)

Net change in fair value due to change in equity instruments

designated at fair











value through other comprehensive income:











Net gains (losses) in fair value


96


84


(44)


532


(122)

Income tax expense (benefit)


25


17


(17)


124


(37)



71


67


(27)


408


(85)

Net change in fair value due to change in own credit risk on financial liabilities











designated under the fair value option:











Change in fair value due to change in own credit risk on financial liabilities











designated under the fair value option


(24)


72


(211)


(270)


(404)

Income tax expense (benefit)


(7)


19


(55)


(71)


(106)



(17)


53


(156)


(199)


(298)

Other comprehensive income (loss) from investments in associates


-


-


-


5


(8)

Other comprehensive income (loss)


(1,444)


15


(795)


(3,340)


(2,836)

Comprehensive income (loss) 

$

1,115

$

2,557

$

1,104

$

6,615

$

4,017

Comprehensive income (loss) attributable to non-controlling interests


(27)


29


-


125


(93)

Comprehensive income (loss) attributable to equity holders of the

Bank

$

1,142

$

2,528

$

1,104

$

6,490

$

4,110

Preferred shareholders and other equity instrument holders


78


35


82


233


196

Common shareholders

$

1,064

$

2,493

$

1,022

$

6,257

$

3,914

 

Consolidated Statement of Changes in Equity







Accumulated other comprehensive income (loss)





(unaudited) ($ millions)

Common

shares

Retained

earnings(1)

Foreign

currency

translation

Debt

instruments

FVOCI

Equity

instruments

FVOCI

Cash

flow

hedges

Other(2)

Other

reserves

Total

common

equity

Preferred

shares and

other equity

instruments

Total
attributable

to equity

holders

Non-

controlling

interests in

subsidiaries

Total

Balance as at October 31, 2020

$

18,239

$

46,345

$

(1,328)

$

330

$

(163)

$

639

$

(1,603)

$

360

$

62,819

$

5,308

$

68,127

$

2,376

$

70,503

Net income


-


9,391


-


-


-


-


-


-


9,391


233


9,624


331


9,955

Other comprehensive income (loss)


-


-


(3,322)


(600)


460


(844)


1,172


-


(3,134)


-


(3,134)


(206)


(3,340)

Total comprehensive income

$

-

$

9,391

$

(3,322)

$

(600)

$

460

$

(844)

$

1,172

$

-

$

6,257

$

233

$

6,490

$

125

$

6,615

Shares/instruments issued


268


-


-


-


-


-


-


(25)


243


2,003


2,246


-


2,246

Shares repurchased/redeemed


-


-


-


-


-


-


-


-


-


(1,259)


(1,259)


-


(1,259)

Dividends and distributions paid to equity holders


-


(4,371)


-


-


-


-


-


-


(4,371)


(233)


(4,604)


(123)


(4,727)

Share-based payments(3)


-


-


-


-


-


-


-


7


7


-


7


-


7

Other


-


(11)


(59)


-


(6)


(9)


-


(120)(4)


(205)


-


(205)


(288)(4)


(493)

Balance as at October 31, 2021

$

18,507

$

51,354

$

(4,709)

$

(270)

$

291

$

(214)

$

(431)

$

222

$

64,750

$

6,052

$

70,802

$

2,090

$

72,892





























Balance as at October 31, 2019

$

18,264

$

44,439

$

800

$

37

$

(55)

$

650

$

(862)

$

365

$

63,638

$

3,884

$

67,522

$

2,670

$

70,192

Net income


-


6,582


-


-


-


-


-


-


6,582


196


6,778


75


6,853

Other comprehensive income (loss)


-


-


(2,128)


293


(81)


(11)


(741)


-


(2,668)


-


(2,668)


(168)


(2,836)

Total comprehensive income

$

-

$

6,582

$

(2,128)

$

293

$

(81)

$

(11)

$

(741)

$

-

$

3,914

$

196

$

4,110

$

(93)

$

4,017

Shares/instruments issued


59


-


-


-


-


-


-


(9)


50


1,689


1,739


-


1,739

Shares repurchased/redeemed


(84)


(330)


-


-


-


-


-


-


(414)


(265)


(679)


-


(679)

Dividends and distributions paid to equity holders


-


(4,363)


-


-


-


-


-


-


(4,363)


(196)


(4,559)


(148)


(4,707)

Share-based payments(3)


-


-


-


-


-


-


-


5


5


-


5


-


5

Other


-


17


-


-


(27)


-


-


(1)


(11)


-


(11)


(53)(4)


(64)

Balance as at October 31, 2020

$

18,239

$

46,345

$

(1,328)

$

330

$

(163)

$

639

$

(1,603)

$

360

$

62,819

$

5,308

$

68,127

$

2,376

$

70,503





























Balance as at October 31, 2018

$

18,234

$

41,414

$

1,441

$

(68)

$

(126)

$

(121)

$

(134)

$

404

$

61,044

$

4,184

$

65,228

$

2,452

$

67,680

Cumulative effect of adopting IFRS 15


-


(58)


-


-


-


-


-


-


(58)


-


(58)


-


(58)

Balance as at November 1, 2018


18,234


41,356


1,441


(68)


(126)


(121)


(134)


404


60,986


4,184


65,170


2,452


67,622

Net income


-


8,208


-


-


-


-


-


-


8,208


182


8,390


408


8,798

Other comprehensive income (loss)


-


-


(641)


105


71


771


(728)


-


(422)


-


(422)


(203)


(625)

Total comprehensive income

$

-

$

8,208

$

(641)

$

105

$

71

$

771

$

(728)

$

-

$

7,786

$

182

$

7,968

$

205

$

8,173

Shares issued


255


-


-


-


-


-


-


(37)


218


-


218


-


218

Shares repurchased/redeemed


(225)


(850)


-


-


-


-


-


-


(1,075)


(300)


(1,375)


-


(1,375)

Dividends and distributions paid to equity holders


-


(4,260)


-


-


-


-


-


-


(4,260)


(182)


(4,442)


(150)


(4,592)

Share-based payments(3)


-


-


-


-


-


-


-


7


7


-


7


-


7

Other


-


(15)


-


-


-


-


-


(9)(4)


(24)


-


(24)


163(4)


139

Balance as at October 31, 2019

$

18,264

$

44,439

$

800

$

37

$

(55)

$

650

$

(862)

$

365

$

63,638

$

3,884

$

67,522

$

2,670

$

70,192

(1)

Includes undistributed retained earnings of $60 (2020 - $64; 2019 - $61) related to a foreign associated corporation, which is subject to local regulatory restriction.

(2)

Includes Share from associates, Employee benefits and Own credit risk.

(3)

Represents amounts on account of share-based payments (refer to Note 26).

(4)

Includes changes to non-controlling interests arising from business combinations and related transactions.

Consolidated Statement of Cash Flows

(Unaudited) ($ millions)

For the three months ended

For the year ended

Sources (uses) of cash flows


October 31  


October 31 


October 31  


October 31 


2021


2020


2021


2020

Cash flows from operating activities









Net income

$

2,559

$

1,899

$

9,955

$

6,853

Adjustment for:









Net interest income


(4,217)


(4,258)


(16,961)


(17,320)

Depreciation and amortization


383


407


1,511


1,546

Provision for credit losses


168


1,131


1,808


6,084

Equity-settled share-based payment expense


1


-


7


5

Net gain on sale of investment securities


(83)


(182)


(419)


(607)

Net (gain)/loss on divestitures


(6)


(1)


9


(307)

Net income from investments in associated corporations


(96)


(49)


(339)


(242)

Income tax expense


689


418


2,871


1,543

Changes in operating assets and liabilities:









Trading assets


(6,608)


5,446


(33,995)


9,945

Securities purchased under resale agreements and securities borrowed


(80)


5,777


(14,202)


12,781

Loans


(15,900)


6,802


(55,748)


(25,486)

Deposits


10,470


(12,793)


78,569


27,982

Obligations related to securities sold short


(2,016)


(1,799)


10,078


1,195

Obligations related to securities sold under repurchase agreements and

securities lent


12,278


966


(7,709)


11,722

Net derivative financial instruments


1,380


(2,580)


2,123


(1,949)

Other, net


3,093


3,465


(5,300)


7,527

Dividends received


284


204


969


824

Interest received


6,128


7,031


25,425


29,572

Interest paid


(1,929)


(2,406)


(8,766)


(13,042)

Income tax paid


(501)


(623)


(2,693)


(1,962)

Net cash from/(used in) operating activities


5,997


8,855


(12,807)


56,664

Cash flows from investing activities









Interest-bearing deposits with financial institutions


(10,223)


(17,490)


(15,006)


(30,346)

Purchase of investment securities


(21,269)


(19,544)


(72,259)


(147,629)

Proceeds from sale and maturity of investment securities


26,552


30,207


103,765


119,033

Acquisition/divestiture of subsidiaries, associated corporations or business

units,









   net of cash acquired


(50)


-


(717)


3,938

Property and equipment, net of disposa