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Derivatives (Tables)
 12 Months Ended
Oct. 31, 2025
Disclosure of Financial Assets [Abstract]  
Summary of Fair Value of Derivatives
The Bank assesses and measures the hedge
 
effectiveness based on the change in the
 
fair value of the hedging instrument
relative to the change in the cash flows of the
 
hedged item attributable to movement in
 
equity price, using the hypothetical derivative
 
method.
Fair Value of Derivatives
(millions of Canadian dollars)
October 31, 2025
October 31, 2024
Fair value as at
Fair value as at
balance sheet date
balance sheet date
Positive
Negative
Positive
Negative
Derivatives held or issued for trading
 
purposes
Interest rate contracts
1
Forward rate agreements
$
119
$
93
$
232
$
48
Swaps
7,968
6,432
11,971
9,470
Options written
–
1,121
–
1,118
Options purchased
1,237
–
1,210
–
Total interest rate contracts
9,324
7,646
13,413
10,636
Foreign exchange contracts
1
Forward contracts
3,585
1,935
3,617
2,521
Swaps
14,776
14,845
15,456
14,304
Cross-currency interest rate swaps
 
24,854
23,378
24,366
22,496
Options written
–
575
–
619
Options purchased
503
–
507
–
Total foreign exchange contracts
43,718
40,733
43,946
39,940
Credit derivative contracts
Credit default swaps – protection purchased
12
311
–
294
Credit default swaps – protection sold
32
1
5
2
Total credit derivative contracts
44
312
5
296
Other contracts
Equity contracts
9,485
16,808
5,286
6,636
Commodity and other contracts
5,619
7,054
5,321
5,545
Total other contracts
15,104
23,862
10,607
12,181
Fair value – trading
68,190
72,553
67,971
63,053
Derivatives held or issued for non-trading
 
purposes
Interest rate contracts
Forward rate agreements
–
–
8
–
Swaps
1,680
2,006
2,005
2,807
Options written
–
–
–
1
Options purchased
–
2
16
–
Total interest rate contracts
1,680
2,008
2,029
2,808
Foreign exchange contracts
Forward contracts
35
1,129
386
494
Swaps
29
1
80
20
Cross-currency interest rate swaps
 
9,827
662
6,649
524
Total foreign exchange contracts
9,891
1,792
7,115
1,038
Credit derivative contracts
Credit default swaps – protection purchased
–
128
1
107
Total credit derivative contracts
–
128
1
107
Other contracts
Equity contracts
3,211
2,875
945
1,362
Total other contracts
3,211
2,875
945
1,362
Fair value – non-trading
14,782
6,803
10,090
5,315
Total fair value
$
82,972
$
79,356
$
78,061
$
68,368
1
 
The fair values of interest rate futures and foreign exchange futures are immaterial and therefore excluded from
 
this table.
Summary of Fair Values of Non-Trading Derivative Instruments Categorized by Hedging Relationships
The following table distinguishes derivatives held
 
or issued for non-trading purposes between
 
those that have been designated in qualifying
 
hedge accounting
relationships and those which have not been
 
designated in qualifying hedge accounting
 
relationships as at October 31, 2025 and
 
October 31, 2024.
Fair Value of Non-Trading
 
Derivatives
1
(millions of Canadian dollars)
As at
October 31, 2025
Derivative Assets
Derivative Liabilities
Derivatives
Derivatives
Derivatives in qualifying
not in
Derivatives in qualifying
not in
hedging relationships
qualifying
hedging relationships
qualifying
Fair
Cash
Net
hedging
Fair
Cash
Net
hedging
value
flow
investment
relationships
Total
value
flow
investment
relationships
Total
Derivatives held or issued for
non-trading purposes
Interest rate contracts
$
1,275
$
199
$
–
$
206
$
1,680
$
300
$
771
$
–
$
937
$
2,008
Foreign exchange contracts
–
9,651
11
229
9,891
–
1,485
286
21
1,792
Credit derivative contracts
–
–
–
–
–
–
–
–
128
128
Other contracts
–
1,808
–
1,403
3,211
–
21
–
2,854
2,875
Fair value – non-trading
$
1,275
$
11,658
$
11
$
1,838
$
14,782
$
300
$
2,277
$
286
$
3,940
$
6,803
October 31, 2024
Derivatives held or issued for
non-trading purposes
Interest rate contracts
$
932
$
123
$
–
$
974
$
2,029
$
309
$
1,290
$
–
$
1,209
$
2,808
Foreign exchange contracts
–
6,945
–
170
7,115
–
846
–
192
1,038
Credit derivative contracts
–
–
–
1
1
–
–
–
107
107
Other contracts
–
337
–
608
945
–
132
–
1,230
1,362
Fair value – non-trading
$
932
$
7,405
$
–
$
1,753
$
10,090
$
309
$
2,268
$
–
$
2,738
$
5,315
1
 
Certain derivative assets qualify to be offset with certain derivative liabilities on the Consolidated Balance
 
Sheet. Refer to Note 6 for further details.
Summary of Effect of Fair Value Hedges and Cash Flow and Net Investment Hedges
Fair Value Hedges
The following table presents the effects of fair
 
value hedges on the Consolidated Balance
 
Sheet and the Consolidated Statement of Income.
Fair Value Hedges
(millions of Canadian dollars)
 
For the years ended or as at
October 31, 2025
Accumulated
Accumulated
Change in
Change in fair
amount of fair
amount of fair
value of hedged
value of hedging
Carrying
value hedge
value hedge
items for
instruments for
amounts
adjustments
adjustments on
ineffectiveness
ineffectiveness
Hedge
for hedged
on hedged
de-designated
measurement
measurement
ineffectiveness
items
items
1,2
hedged items
Assets
Interest rate risk
Debt securities at amortized cost
$
2,031
$
(2,033)
$
(2)
$
112,729
$
(7,849)
$
(3,195)
Financial assets at fair value through
other comprehensive income
1,616
(1,618)
(2)
93,230
472
18
Loans
517
(514)
3
31,906
(14)
(5)
Total assets
4,164
(4,165)
(1)
237,865
(7,391)
(3,182)
Liabilities
Interest rate risk
Deposits
 
(1,090)
 
1,088
 
(2)
 
165,311
 
(875)
 
27
Securitization liabilities at amortized cost
(141)
141
–
8,599
169
–
Subordinated notes and debentures
(53)
53
–
2,825
82
(54)
Total liabilities
(1,284)
1,282
(2)
176,735
(624)
(27)
Total
$
2,880
$
(2,883)
$
(3)
October 31, 2024
Assets
Interest rate risk
Debt securities at amortized cost
$
6,856
$
(6,899)
$
(43)
$
113,323
$
(10,995)
$
(3,015)
Financial assets at fair value through
 
other comprehensive income
3,127
(3,146)
(19)
53,253
(1,086)
(71)
Loans
1,789
(1,798)
(9)
52,765
(328)
4
Total assets
11,772
(11,843)
(71)
219,341
(12,409)
(3,082)
Liabilities
Interest rate risk
Deposits
 
(2,291)
 
2,265
 
(26)
 
125,519
 
(3,543)
 
(136)
Securitization liabilities at amortized cost
(163)
163
–
6,865
68
–
Subordinated notes and debentures
(50)
50
–
3,158
27
(91)
Total liabilities
(2,504)
2,478
(26)
135,542
(3,448)
(227)
Total
$
9,268
$
(9,365)
$
(97)
1
 
The Bank has portfolios of fixed rate financial assets and liabilities whereby the principal amount changes frequently
 
due to originations, issuances, maturities and prepayments. The
interest rate risk hedges on these portfolios are rebalanced dynamically.
2
 
Reported balances represent adjustments to the carrying values of hedged items as included in the “Carrying amounts
 
for hedged items” column in this table.
The following table presents the effects of cash
 
flow hedges and net investment hedges on the
 
Bank’s Consolidated Statement of Income and
 
the Consolidated
Statement of Comprehensive Income.
Cash Flow and Net Investment Hedges
(millions of Canadian dollars)
For the years ended
October 31, 2025
 
Change in fair
 
Hedging
Amount reclassified
Change in value
value of hedging
 
gains (losses)
from accumulated
Net change
of hedged items
instruments for
 
recognized in other
other comprehensive
in other
for ineffectiveness
ineffectiveness
Hedge
comprehensive
income (loss)
comprehensive
 
measurement
measurement
ineffectiveness
income
1
to earnings
1
income (loss)
1
Cash flow hedges
2
Interest rate risk
3
$
(1,859)
$
1,860
$
1
$
1,619
$
(1,048)
$
2,667
Foreign exchange risk
4,5,6
(5,199)
5,201
2
4,679
4,559
120
Equity price risk
(1,531)
1,542
11
1,542
1,347
195
Total cash flow hedges
$
(8,589)
$
8,603
$
14
$
7,840
$
4,858
$
2,982
Net investment hedges
7
$
1,088
$
(1,088)
$
–
$
(1,088)
$
(799)
$
(289)
October 31, 2024
Cash flow hedges
2
Interest rate risk
3
$
(3,602)
$
3,606
$
4
$
2,128
$
(2,311)
$
4,439
Foreign exchange risk
4,5,6
(1,863)
1,867
4
1,287
2,204
(917)
Equity price risk
56
(59)
(3)
(59)
(66)
7
Total cash flow hedges
$
(5,409)
$
5,414
$
5
$
3,356
$
(173)
$
3,529
Net investment hedges
$
457
$
(457)
$
–
$
(457)
$
(41)
$
(416)
1
 
Effects on OCI are presented on a pre-tax basis.
2
 
During the years ended October 31, 2025 and October 31, 2024, there were no instances where forecast hedged
 
transactions failed to occur.
3
 
Hedged items include forecast interest cash flows on loans
,
deposits, and securitization liabilities.
4
 
For non-derivative instruments designated as hedging foreign exchange risk, fair value change is measured as
 
the gains and losses due to spot foreign exchange movements.
5
Cross-currency swaps may be used to hedge 1) foreign exchange risk, or 2) a combination of interest rate risk
 
and foreign exchange risk in a single hedge relationship. Cross-currency
swaps in both types of hedge relationships are disclosed in the foreign exchange risk category.
6
Hedged items include principal and interest cash flows on foreign denominated securities, loans, deposits, other
 
liabilities, and subordinated notes and debentures.
7
The amount reclassified from accumulated other comprehensive income (loss) to earnings relates to the
 
sale of the Bank’s equity investment in Schwab.
Summary of Reconciliation of Accumulated Other Comprehensive Income (Loss)
Reconciliation of Accumulated Other Comprehensive
 
Income (Loss)
1
(millions of Canadian dollars)
For the years ended
October 31, 2025
 
 
Accumulated other
Accumulated other
Accumulated other
Accumulated other
comprehensive
Net changes in other
comprehensive
comprehensive
comprehensive
income (loss)
comprehensive
income (loss)
income (loss) on
income (loss) on
 
at beginning of year
income (loss)
at end of year
designated hedges
de-designated hedges
Cash flow hedges
Interest rate risk
$
(2,002)
$
2,667
$
665
$
1,727
$
(1,062)
Foreign exchange risk
(2,008)
120
(1,888)
(1,888)
–
Equity price risk
(14)
195
181
181
–
Total cash flow hedges
$
(4,024)
$
2,982
$
(1,042)
$
20
$
(1,062)
Net investment hedges
Foreign translation risk
$
(6,768)
$
(289)
$
(7,057)
$
(7,057)
$
–
October 31, 2024
Cash flow hedges
Interest rate risk
$
(6,441)
$
4,439
$
(2,002)
$
455
$
(2,457)
Foreign exchange risk
(1,091)
(917)
(2,008)
(2,008)
–
Equity price risk
(21)
7
(14)
(14)
–
Total cash flow hedges
$
(7,553)
$
3,529
$
(4,024)
$
(1,567)
$
(2,457)
Net investment hedges
Foreign translation risk
$
(6,352)
$
(416)
$
(6,768)
$
(6,768)
$
–
1
 
Presented on a pre-tax basis.
Summary of Notional Amounts of Over the Counter and Exchange Traded Derivatives
The following table discloses the notional
 
amount of OTC and exchange-traded derivatives.
Over-the-Counter and Exchange-Traded Derivatives
(millions of Canadian dollars)
As at
October 31
October 31
2025
2024
Trading
Over-the-Counter
1
Non
Clearing
clearing
Exchange-
Non-
house
2
house
traded
Total
trading
3
Total
Total
Notional
 
 
 
 
 
Interest rate contracts
Futures
$
–
$
–
$
1,207,135
$
1,207,135
$
–
$
1,207,135
$
761,112
Forward rate agreements
942,703
31,384
–
974,087
579
974,666
574,289
Swaps
19,608,951
623,143
–
20,232,094
1,910,412
22,142,506
19,839,245
Options written
–
150,130
53,654
203,784
105
203,889
99,490
Options purchased
–
171,046
56,203
227,249
3
227,252
119,511
Total interest rate contracts
20,551,654
975,703
1,316,992
22,844,349
1,911,099
24,755,448
21,393,647
Foreign exchange contracts
Forward contracts
48
456,331
–
456,379
26,687
483,066
380,615
Swaps
–
1,824,527
–
1,824,527
2,160
1,826,687
1,692,601
Cross-currency interest rate swaps
–
1,716,271
–
1,716,271
181,907
1,898,178
1,669,577
Options written
–
62,931
326
63,257
–
63,257
56,777
Options purchased
–
58,215
40
58,255
–
58,255
49,359
Total foreign exchange contracts
48
4,118,275
366
4,118,689
210,754
4,329,443
3,848,929
Credit derivative contracts
Credit default swaps – protection purchased
13,907
1,934
–
15,841
2,890
18,731
15,504
Credit default swaps – protection sold
1,889
329
–
2,218
–
2,218
1,893
Total credit derivative contracts
15,796
2,263
–
18,059
2,890
20,949
17,397
Other contracts
Equity contracts
–
218,155
191,085
409,240
32,295
441,535
278,028
Commodity and other contracts
174
99,416
188,539
288,129
–
288,129
245,595
Total other contracts
174
317,571
379,624
697,369
32,295
729,664
523,623
Total
$
20,567,672
$
5,413,812
$
1,696,982
$
27,678,466
$
2,157,038
$
29,835,504
$
25,783,596
1
Collateral held under a Credit Support Annex to help reduce counterparty credit risk is in the form of high-quality
 
and liquid assets such as cash and high-quality government securities.
Acceptable collateral is governed by the Collateralized Trading Policy.
2
 
Derivatives executed through a central clearing house reduce settlement risk due to the ability to net settle offsetting
 
positions for capital purposes and therefore receive preferential
capital treatment compared to those settled with non-central clearing house counterparties.
3
 
Includes $
1,762
 
billion of OTC derivatives that are transacted with clearing houses (October 31, 2024 – $
1,532
 
billion) and $
395
 
billion of OTC derivatives that are transacted with non-
clearing houses (October 31, 2024 – $
394
 
billion). There were
no
 
exchange-traded derivatives both as at October 31, 2025 and October 31, 2024.
Schedule of Notional Amount of Non-trading Derivatives
The following table distinguishes the notional
 
amount of derivatives held or issued for
 
non-trading purposes between those that have
 
been designated in qualifying
hedge accounting relationships and those
 
which have not been designated in qualifying
 
hedge accounting relationships.
Notional of Non-Trading Derivatives
(millions of Canadian dollars)
As at
October 31, 2025
Derivatives in qualifying hedging relationships
Derivatives not in
Derivatives held or issued for
Fair
Cash
Net
qualifying hedging
hedging (non-trading) purposes
value
flow
1
Investment
1
relationships
Total
Interest rate contracts
$
436,988
$
380,109
$
–
$
1,094,002
$
1,911,099
Foreign exchange contracts
–
172,269
23,220
15,265
210,754
Credit derivative contracts
–
–
–
2,890
2,890
Other contracts
–
2,551
–
29,744
32,295
Total notional non-trading
$
436,988
$
554,929
$
23,220
$
1,141,901
$
2,157,038
October 31, 2024
Interest rate contracts
$
395,687
$
340,741
$
–
$
974,641
$
1,711,069
Foreign exchange contracts
–
159,693
–
15,771
175,464
Credit derivative contracts
–
–
–
2,708
2,708
Other contracts
–
2,409
–
33,640
36,049
Total notional non-trading
$
395,687
$
502,843
$
–
$
1,026,760
$
1,925,290
1
Certain cross-currency swaps are executed using multiple derivatives, including interest rate swaps. These derivatives
 
are used to hedge foreign exchange rate risk in cash flow hedges
and net investment hedges.
Summary of Notional Amounts of Over-the-counter Derivatives and Exchange-traded Derivatives Based on Their Contractual Terms to Maturity
The following table discloses the notional
 
principal amount of OTC derivatives and exchange-traded
 
derivatives based on their contractual terms
 
to maturity.
Derivatives by Remaining Term-to-Maturity
(millions of Canadian dollars)
As at
October
October
2025
2024
Within
Over 1 year
Over
Notional Principal
1 year
to 5 years
5 years
Total
Total
Interest rate contracts
Futures
$
891,230
$
315,905
$
–
$
1,207,135
$
761,112
Forward rate agreements
946,656
28,010
–
974,666
574,289
Swaps
7,262,622
9,998,401
4,881,483
22,142,506
19,839,245
Options written
159,225
41,237
3,427
203,889
99,490
Options purchased
165,281
59,498
2,473
227,252
119,511
Total interest rate contracts
9,425,014
10,443,051
4,887,383
24,755,448
21,393,647
Foreign exchange contracts
Forward contracts
461,515
19,334
2,217
483,066
380,615
Swaps
1,781,558
42,098
3,031
1,826,687
1,692,601
Cross-currency interest rate swaps
551,107
945,450
401,621
1,898,178
1,669,577
Options written
58,108
5,149
–
63,257
56,777
Options purchased
53,584
4,666
5
58,255
49,359
Total foreign exchange contracts
2,905,872
1,016,697
406,874
4,329,443
3,848,929
Credit derivative contracts
Credit default swaps – protection purchased
4,943
8,716
5,072
18,731
15,504
Credit default swaps – protection sold
554
1,119
545
2,218
1,893
Total credit derivative contracts
5,497
9,835
5,617
20,949
17,397
Other contracts
Equity contracts
338,989
90,121
12,425
441,535
278,028
Commodity and other contracts
256,783
30,286
1,060
288,129
245,595
Total other contracts
595,772
120,407
13,485
729,664
523,623
Total
$
12,932,155
$
11,589,990
$
5,313,359
$
29,835,504
$
25,783,596
Summary of Hedging Instruments by Term to Maturity
The following table discloses the notional amount
 
and average price of derivative instruments
 
designated in qualifying hedge accounting
 
relationships.
Hedging Instruments by Remaining Term-to-Maturity
(millions of Canadian dollars, except
 
as noted)
As at
October 31
October 31
2025
2024
Within
Over 1 year
Over 5
Notional
1 year
to 5 years
years
Total
Total
Interest rate risk
Interest rate swaps
Notional – pay fixed
$
15,114
$
126,746
$
106,458
$
248,318
$
230,740
Average fixed interest rate %
2.77
3.02
2.58
Notional – received fixed
121,601
190,068
44,210
355,879
317,149
Average fixed interest rate %
3.04
3.01
3.15
Total notional – interest rate risk
136,715
316,814
150,668
604,197
547,889
Foreign exchange risk
1
Forward contracts
Notional – USD/CAD
2,127
3,902
38
6,067
7,816
Average FX forward rate
1.31
1.31
1.30
Notional – EUR/CAD
2,808
14,007
2,756
19,571
15,141
Average FX forward rate
1.59
1.55
1.60
Notional – other
257
–
–
257
901
Cross-currency swaps
2,3
Notional – USD/CAD
39,860
29,184
11,449
80,493
46,944
Average FX rate
1.36
1.35
1.32
Notional – EUR/CAD
15,336
34,779
14,373
64,488
61,877
Average FX rate
1.45
1.47
1.49
Notional – GBP/CAD
–
8,189
–
8,189
9,760
Average FX rate
1.68
Notional – other currency pairs
4
5,997
9,101
1,326
16,424
17,254
Total notional – foreign exchange risk
66,385
99,162
29,942
195,489
159,693
Equity Price Risk
Notional – equity contracts
2,551
2,551
2,409
Total notional
$
205,651
$
415,976
$
180,610
$
802,237
$
709,991
1
Foreign currency denominated deposit liabilities are also used to hedge foreign exchange risk. Includes $
60.3
 
billion (October 31, 2024 – $
77.4
 
billion) of the carrying value of these non-
derivative hedging instruments
 
designated under net investment hedges.
2
 
Cross-currency swaps may be used to hedge 1) foreign exchange risk, or 2) a combination of interest rate risk and
 
foreign exchange risk in a single hedge relationship. Cross-currency
swaps in both types of hedge relationships are disclosed in the foreign exchange risk category.
3
 
Certain cross-currency swaps are executed using multiple derivatives, including interest rate swaps. The notional
 
amount of these interest rate swaps, excluded from the above, is
$
212.9
 
billion as at October 31, 2025 (October 31, 2024 – $
188.5
 
billion).
4
Includes derivatives executed to manage non-trading foreign currency exposures, when more than one currency
 
is involved prior to hedging to the Canadian dollar, or when
 
the currency
pair is not a significant exposure for the Bank.
Credit Exposure of Derivatives
The current replacement cost and credit equivalent
 
amount shown in the following table are based
 
on the
standardized approach for counterparty credit
 
risk. According to this approach, the
 
current replacement cost accounts for
 
the fair value of the positions, posted and
received collateral, and master netting agreement
 
clauses. The credit equivalent amount is
 
the sum of the current replacement cost
 
and the potential future
exposure, which is calculated by applying
 
factors determined by OSFI to the notional
 
principal amount of the derivatives. The risk-weighted
 
amount is determined
by applying the adequate risk weights to
 
the credit equivalent amount.
Credit Exposure of Derivatives
(millions of Canadian dollars)
As at
October 31, 2025
October 31, 2024
Current
Credit
Risk-
Current
Credit
Risk-
replacement
equivalent
weighted
replacement
equivalent
weighted
cost
amount
amount
cost
amount
amount
Interest rate contracts
Forward rate agreements
$
49
$
162
$
61
$
35
$
102
$
29
Swaps
2,838
8,962
1,323
4,215
11,037
964
Options written
5
147
26
7
140
26
Options purchased
10
151
29
17
123
23
Total interest rate contracts
2,902
9,422
1,439
4,274
11,402
1,042
Foreign exchange contracts
Forward contracts
1,064
5,180
978
1,746
5,643
1,022
Swaps
2,802
16,099
2,373
3,234
16,136
2,246
Cross-currency interest rate swaps
3,358
15,195
1,574
4,124
17,176
1,515
Options written
34
334
74
36
291
59
Options purchased
43
279
68
50
239
64
Total foreign exchange contracts
7,301
37,087
5,067
9,190
39,485
4,906
Other contracts
Credit derivatives
–
192
26
–
207
30
Equity contracts
729
12,531
2,994
669
8,964
2,348
Commodity and other contracts
746
4,777
1,044
1,115
5,752
848
Total other contracts
1,475
17,500
4,064
1,784
14,923
3,226
Total derivatives
11,678
64,009
10,570
15,248
65,810
9,174
Qualifying Central Counterparty Contracts
11,772
24,449
797
10,529
19,117
652
Total
$
23,450
$
88,458
$
11,367
$
25,777
$
84,927
$
9,826
Summary of Current Replacement Cost of Derivatives by Sector
Current Replacement Cost of Derivatives
(millions of Canadian dollars, except
 
as noted)
As at
Canada
1
United States
1
Other international
1
Total
October 31
October 31
October 31
October 31
October 31
October 31
October 31
October 31
By sector
2025
2024
2025
2024
2025
2024
2025
2024
Financial
$
3,367
$
4,647
$
56
$
38
$
605
$
272
$
4,028
$
4,957
Government
2,695
3,594
77
98
1,018
2,618
3,790
6,310
Other
1,818
1,670
673
639
1,369
1,671
3,860
3,980
Total current replacement cost
$
7,880
$
9,911
$
806
$
775
$
2,992
$
4,561
$
11,678
$
15,247
October 31
October 31
October 31
October 31
2025
2024
By location of risk
2025
2024
% mix
% mix
Canada
$
3,237
$
3,737
27.7
%
24.5
%
United States
3,930
4,937
33.7
32.4
Other international
United Kingdom
717
775
6.1
5.1
Europe – other
1,919
2,828
16.4
18.5
Other
1,875
2,970
16.1
19.5
Total Other international
4,511
6,573
38.6
43.1
Total current replacement cost
$
11,678
$
15,247
100.0
%
100.0
%
1
 
Based on geographic location of unit responsible for recording revenue.