Consolidated Financial Statements

Consolidated Statement of Cash Flows

For the Year Ended October 31 (Canadian $ in millions)   2017   2016   2015

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 $ 5,350 $ 4,631 $ 4,405
Adjustments to determine net cash flows provided by (used in) operating activities          
Impairment write-down of securities, other than trading (Note 3 PDF)   7   17   12
Net (gain) on securities, other than trading (Note 3 PDF)   (178)   (101)   (183)
Net (increase) decrease in trading securities   (16,237)   (11,403)   15,613
Provision for credit losses (Note 4 PDF)   774   815   612
Change in derivative instruments          
– (Increase) decrease in derivative asset   15,544   (306)   (6,178)
– Increase (decrease) in derivative liability   (14,923)   (5,598)   9,320
Amortization of premises and equipment (Note 9 PDF)   391   384   377
Amortization of other assets   227   219  
Amortization of intangible assets (Note 11 PDF)   485   444   411
Net decrease in deferred income tax asset   156   108   226
Net increase (decrease) in deferred income tax liability   (12)   (7)   76
Net (increase) decrease in current income tax asset   (497)   (345)   298
Net increase (decrease) in current income tax liability   52   (18)   (141)
Change in accrued interest          
– (Increase) decrease in interest receivable   (130)   (81)   53
– Increase (decrease) in interest payable   15   64   (113)
Changes in other items and accruals, net   (2,095)   1,771   5,820
Net increase in deposits   16,094   22,835   7,884
Net (increase) in loans   (8,857)   (23,235)   (15,600)
Net increase (decrease) in securities sold but not yet purchased   336   3,739   (7,049)
Net increase (decrease) in securities lent or sold under repurchase agreements   16,535   (82)   (4,625)
Net (increase) decrease in securities borrowed or purchased under resale agreements   (10,891)   2,793   (7,940)
Net increase (decrease) in securitization and structured entities’ liabilities   762   628   (1,028)
Net Cash Provided by (Used in) Operating Activities   2,908   (2,728)   2,250

Cash Flows from Financing Activities

           
Net increase (decrease) in liabilities of subsidiaries   (87)   3,100   (390)
Proceeds from issuance of covered bonds (Note 13 PDF)   5,845   8,945   6,684
Redemption of covered bonds (Note 13 PDF)   (2,602)   (2,101)   (2,498)
Proceeds from issuance of subordinated debt (Note 15 PDF)   850   2,250  
Repayment of subordinated debt (Note 15 PDF)   (100)   (2,200)   (500)
Proceeds from issuance of preferred shares (Note 16 PDF)   900   600   950
Redemption of preferred shares (Note 16 PDF)   (500)     (753)
Redemption of capital trust securities (Note 16 PDF)     (450)   (600)
Share issue expense   (9)   (6)   (5)
Proceeds from issuance of common shares (Note 16 PDF)   149   137   51
Common shares repurchased for cancellation (Note 16 PDF)   (440)     (618)
Cash dividends paid   (2,010)   (2,219)   (2,135)
Cash dividends paid to non-controlling interest     (10)   (37)
Net Cash Provided by Financing Activities   1,996   8,046   149

Cash Flows from Investing Activities

         
Net (increase) decrease in interest bearing deposits with banks   (2,245)   3,007   (461)
Purchases of securities, other than trading   (51,917)   (34,859)   (16,996)
Maturities of securities, other than trading   5,930   6,985   5,267
Proceeds from sales of securities, other than trading   45,893   22,293   16,740
Purchase of non-controlling interest   (25)    
Premises and equipment – net (purchases)   (301)   (224)   (179)
Purchased and developed software – net (purchases)   (490)   (387)   (345)
Acquisitions (Note 10 PDF)     (12,147)  
Net Cash Provided by (Used in) Investing Activities   (3,155)   (15,332)   4,026
Effect of Exchange Rate Changes on Cash and Cash Equivalents   (803)   1,372   5,484
Net increase (decrease) in Cash and Cash Equivalents   946   (8,642)   11,909
Cash and Cash Equivalents at Beginning of Year   31,653   40,295   28,386

Cash and Cash Equivalents at End of Year (Note 2 PDF)

$ 32,599 $ 31,653 $ 40,295

Supplemental Disclosure of Cash Flow Information

         
Net cash provided by operating activities includes:          
Amount of interest paid in the year $ 5,826 $ 4,561 $ 4,476
Amount of income taxes paid in the year $ 1,338 $ 1,201 $ 641
Amount of interest and dividend income received in the year $ 15,900 $ 14,541 $ 13,138