Annual Report 2016

Consolidated Financial Statements

Consolidated Statement of Cash Flows

For the Year Ended October 31 (Canadian $ in millions)   2016   2015   2014

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

Certain comparative figures have been reclassified to conform with the current year’s presentation.

Cash Flows from Operating Activities

         
Net income $ 4,631 $ 4,405 $ 4,333
Adjustments to determine net cash flows provided by (used in) operating activities          
Impairment write-down of securities, other than trading (Note 3 PDF)   17   12   8
Net (gain) on securities, other than trading (Note 3 PDF)   (101)   (183)   (170)
Net (increase) decrease in trading securities   (11,403)   15,613   (8,470)
Provision for credit losses (Note 4 PDF)   815   612   561
Change in derivative instruments          
– (Increase) in derivative asset   (306)   (6,178)   (2,822)
– Increase (decrease) in derivative liability   (5,598)   9,320   1,402
Amortization of premises and equipment (Note 9 PDF)   384   377   365
Amortization of other assets   219    
Amortization of intangible assets (Note 11 PDF)   444   411   382
Net decrease in deferred income tax asset   108   226   241
Net increase (decrease) in deferred income tax liability   (7)   76   (42)
Net (increase) decrease in current income tax asset   (345)   298   546
Net (decrease) in current income tax liability   (18)   (141)   (226)
Change in accrued interest          
– (Increase) decrease in interest receivable   (81)   53   (36)
– Increase (decrease) in interest payable   64   (113)   160
Changes in other items and accruals, net   2,408   4,792   4,094
Net increase in deposits   22,906   7,967   9,814
Net (increase) in loans   (23,235)   (15,600)   (15,207)
Net increase (decrease) in securities sold but not yet purchased   3,739   (7,049)   4,429
Net increase (decrease) in securities lent or sold under repurchase agreements   (82)   (4,625)   9,073
Net (increase) decrease in securities borrowed or purchased under resale agreements   2,793   (7,940)   (11,362)
Net Cash Provided by (Used in) Operating Activities   (2,648)   2,333   (2,927)

Cash Flows from Financing Activities

           
Net increase (decrease) in liabilities of subsidiaries   3,100   (390)   (48)
Proceeds from issuance (maturities) of Covered Bonds (Note 13 PDF)   6,773   4,103   (406)
Proceeds from issuance (repayment) of subordinated debt (Note 15 PDF)   50   (500)   1,000
Proceeds from issuance of preferred shares (Note 16 PDF)   600   950   1,200
Redemption of preferred shares (Note 16 PDF)     (753)   (425)
Redemption of capital trust securities (Note 16 PDF)   (450)   (600)  
Share issue expense   (6)   (5)   (16)
Proceeds from issuance of common shares (Note 16 PDF)   137   51   133
Common shares repurchased for cancellation (Note 16 PDF)     (618)  
Cash dividends paid   (2,219)   (2,135)   (1,851)
Cash dividends paid to non-controlling interest   (10)   (37)   (52)
Net Cash Provided by (Used in) Financing Activities   7,975   66   (465)

Cash Flows from Investing Activities

         
Net (increase) decrease in interest bearing deposits with banks   3,007   (461)   519
Purchases of securities, other than trading   (34,859)   (16,996)   (24,674)
Maturities of securities, other than trading   6,985   5,267   11,698
Proceeds from sales of securities, other than trading   22,293   16,740   17,184
Premises and equipment – net (purchases)   (224)   (179)   (355)
Purchased and developed software – net (purchases)   (396)   (345)   (382)
Acquisitions (Note 10 PDF)   (12,147)     (956)
Net Cash Provided by (Used in) Investing Activities   (15,341)   4,026   3,034
Effect of Exchange Rate Changes on Cash and Cash Equivalents   1,372   5,484   2,396
Net increase (decrease) in Cash and Cash Equivalents   (8,642)   11,909   2,038
Cash and Cash Equivalents at Beginning of Year   40,295   28,386   26,348

Cash and Cash Equivalents at End of Year

$ 31,653 $ 40,295 $ 28,386

Represented by:

         
Cash and deposits with banks (Note 2 PDF) $ 29,460 $ 38,818 $ 27,056
Cheques and other items in transit, net (Note 2 PDF)   2,193   1,477   1,330
  $ 31,653 $ 40,295 $ 28,386

Supplemental Disclosure of Cash Flow Information

         
Net cash provided by operating activities includes:          
Amount of interest paid in the year $ 4,561 $ 4,476 $ 4,407
Amount of income taxes paid in the year $ 1,201 $ 641 $ 264
Amount of interest and dividend income received in the year $ 14,541 $ 13,138 $ 12,735
 

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