Consolidated Financial Statements

Consolidated Statement of Cash Flows

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For the Year Ended October 31 (Canadian $ in millions)   2010   2009   2008

The accompanying notes are an integral part of these consolidated financial statements.

Cash Flows from Operating Activities

           
Net income $ 2,810 $ 1,787 $ 1,978
Adjustments to determine net cash flows provided by (used in) operating activities            
Impairment write-down of securities, other than trading (Note 3 PDF)   40   301   324
Net (gain) loss on securities, other than trading (Note 3 PDF)   (190)   53   (9)
Net (increase) decrease in trading securities   (13,707)   7,207   8,275
Provision for credit losses   1,049   1,603   1,330
(Gain) on sale of securitized loans (Note 8 PDF)   (496)   (700)   (420)
Change in derivative instruments            
– (Increase) decrease in derivative asset   (2,803)   14,010   (29,370)
– Increase (decrease) in derivative liability   4,775   (9,510)   20,645
Amortization of premises and equipment (Note 11 PDF)   267   269   252
(Gain) on sales of land and buildings   (4)   (10)   (13)
Amortization of intangible assets   203   203   183
Net (increase) decrease in future income taxes   (62)   186   (157)
Net (increase) decrease in current income taxes   (229)   296   (314)
Change in accrued interest            
– (Increase) decrease in interest receivable   (75)   387   303
– (Decrease) in interest payable   (119)   (492)   (351)
Changes in other items and accruals, net   1,957   (2,796)   1,590
Net Cash Provided by (Used in) Operating Activities   (6,584)   12,794   4,246

Cash Flows from Financing Activities

           
Net increase (decrease) in deposits   16,762   (11,149)   (1,412)
Net increase (decrease) in securities sold but not yet purchased   4,662   (6,446)   (7,251)
Net increase (decrease) in securities lent or sold under repurchase agreements   2,043   17,467   (3,731)
Net increase (decrease) in liabilities of subsidiaries   (10)   (113)   2,045
Repayment of subordinated debt (Note 17 PDF)   (500)   (140)   (150)
Proceeds from issuance of subordinated debt (Note 17 PDF)       900
Redemption of preferred share liability (Note 20 PDF)     (250)   – 
Proceeds from issuance of preferred shares (Note 20 PDF)     825   550
Proceeds from issuance of common shares (Note 20 PDF)   197   1,087   60
Redemption of Capital Trust Securities (Note 18 PDF)   (350)    
Share issue expense   (3)   (32)   (10)
Cash dividends paid   (1,175)   (1,312)   (1,361)
Net Cash Provided by (Used in) Financing Activities   21,626   (63)   (10,360)

Cash Flows from Investing Activities

           
Net decrease in interest bearing deposits with banks   383   8,656   10,077
Purchases of securities, other than trading   (28,587)   (41,041)   (21,303)
Maturities of securities, other than trading   13,879   10,800   16,984
Proceeds from sales of securities, other than trading   15,329   18,917   8,268
Net (increase) in loans   (17,531)   (3,107)   (28,507)
Proceeds from securitization of loans (Note 8)   4,279   6,796   11,448
Net (increase) decrease in securities borrowed or purchased under resale agreements   6,725   (10,985)   14,665
Proceeds from sales of land and buildings   5   17   19
Premises and equipment – net purchases   (207)   (204)   (285)
Purchased and developed software – net purchases   (274)   (176)   (164)
Acquisitions (Note 12 PDF)   (1,029)   (328)   (155)
Net Cash Provided by (Used in) Investing Activities   (7,028)   (10,655)   11,047
Effect of Exchange Rate Changes on Cash and Cash Equivalents   (601)   (1,255)   551
Net Increase in Cash and Cash Equivalents   7,413   821   5,484
Cash and Cash Equivalents at Beginning of Year   9,955   9,134   3,650

Cash and Cash Equivalents at End of Year

$ 17,368 $ 9,955 $ 9,134

Represented by:

           
Cash and non-interest bearing deposits with Bank of Canada and other banks $ 16,693 $ 8,656 $ 6,936
Cheques and other items in transit, net   675   1,299   2,198
  $ 17,368 $ 9,955 $ 9,134

Supplemental Disclosure of Cash Flow Information

           
Amount of interest paid in the year $ 3,371 $ 5,507 $ 9,900
Amount of income taxes paid (refunded) in the year $ 897 $ (232) $ 456

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