Consolidated Financial Statements

Consolidated Statement of Cash Flows

For the Year Ended October 31 (Canadian $ in millions)   2018   2017   2016

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 $ 5,450 $ 5,350 $ 4,631
Adjustments to determine net cash flows provided by (used in) operating activities          
Provision on securities, other than trading (Note 3 PDF)   14   7   17
Net (gain) on securities, other than trading (Note 3 PDF)   (253)   (178)   (101)
Net (increase) in trading securities   (2,650)   (16,237)   (11,403)
Provision for credit losses (Note 4 PDF)   662   746   771
Change in derivative instruments          
– (Increase) decrease in derivative asset   5,287   15,544   (306)
– (Decrease) in derivative liability   (6,699)   (14,923)   (5,598)
Amortization of premises and equipment (Note 9 PDF)   400   391   384
Amortization of other assets   224   227   219
Amortization of intangible assets (Note 11 PDF)   503   485   444
Net decrease in deferred income tax asset   834   156   108
Net increase (decrease) in deferred income tax liability   2   (12)   (7)
Net (increase) in current income tax asset   (232)   (497)   (345)
Net increase (decrease) in current income tax liability   (87)   52   (18)
Change in accrued interest          
– (Increase) in interest receivable   (366)   (130)   (81)
– Increase in interest payable   337   15   64
Changes in other items and accruals, net   956   (3,416)   1,199
Net increase in deposits   35,261   15,409   23,385
Net (increase) in loans   (23,089)   (6,823)   (23,169)
Net increase in securities sold but not yet purchased   2,004   336   3,739
Net increase (decrease) in securities lent or sold under repurchase agreements   452   16,535   (82)
Net (increase) decrease in securities borrowed or purchased under resale agreements   (2,958)   (10,891)   2,793
Net increase in securitization and structured entities’ liabilities   1,860   762   628
Net Cash Provided by (Used in) Operating Activities   17,912   2,908   (2,728)

Cash Flows from Financing Activities

           
Net increase (decrease) in liabilities of subsidiaries   2,203   (87)   3,100
Proceeds from issuance of covered bonds (Note 13 PDF)   2,706   5,845   8,945
Redemption of covered bonds (Note 13 PDF)   (567)   (2,602)   (2,101)
Proceeds from issuance of subordinated debt (Note 15 PDF)   2,685   850   2,250
Repayment of subordinated debt (Note 15 PDF)   (900)   (100)   (2,200)
Proceeds from issuance of preferred shares (Note 16 PDF)   400   900   600
Redemption of preferred shares (Note 16 PDF)   (300)   (500)  
Redemption of capital trust securities       (450)
Share issue expense   (5)   (9)   (6)
Proceeds from issuance of common shares (Note 16 PDF)   88   149   137
Common shares repurchased for cancellation (Note 16 PDF)   (991)   (440)  
Cash dividends paid   (2,582)   (2,010)   (2,219)
Cash dividends paid to non-controlling interest       (10)
Net Cash Provided by Financing Activities   2,737   1,996   8,046

Cash Flows from Investing Activities

         
Net (increase) decrease in interest bearing deposits with banks   (1,648)   (2,245)   3,007
Purchases of securities, other than trading   (46,749)   (30,424)   (28,860)
Maturities of securities, other than trading   14,754   5,930   6,985
Proceeds from sales of securities, other than trading   23,561   24,400   16,294
Purchase of non-controlling interest     (25)  
Premises and equipment – net (purchases)   (330)   (301)   (224)
Purchased and developed software – net (purchases)   (556)   (490)   (387)
Acquisitions (Note 10 PDF)   (365)     (12,147)
Net Cash (Used in) Investing Activities   (11,333)   (3,155)   (15,332)
Effect of Exchange Rate Changes on Cash and Cash Equivalents   227   (803)   1,372
Net increase (decrease) in Cash and Cash Equivalents   9,543   946   (8,642)
Cash and Cash Equivalents at Beginning of Year   32,599   31,653   40,295

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

$ 42,142 $ 32,599 $ 31,653

Supplemental Disclosure of Cash Flow Information

         
Net cash provided by operating activities includes:          
Interest paid in the year $ 8,790 $ 5,826 $ 4,561
Income taxes paid in the year $ 1,261 $ 1,338 $ 1,201
Interest received in the year $ 18,867 $ 15,553 $ 14,273
Dividends received in the year $ 1,277 $ 1,607 $ 1,336