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Securities

12 Months Ended

Oct. 31, 2025

Note 2: Securities

Securities are divided into five types, each with a different purpose and accounting treatment. The types of securities we hold are as follows:

Trading securities

are securities purchased for resale over a short period of time. Trading securities are recorded at FVTPL. Transaction costs and changes in fair value are recorded in our Consolidated Statement of Income in trading revenues.

Fair value through profit or loss securities

are measured at fair value, with changes in fair value and related transaction costs recorded in our Consolidated Statement of Income in securities gains, other than trading, except as noted below. This category includes the following:

Securities Designated at FVTPL

In order to qualify for this designation, the security must have a reliably measurable fair value, and the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the gains and losses on a different basis. Securities must be designated on initial recognition, and the designation is irrevocable. If these securities are not designated at FVTPL, they would be accounted for at either FVOCI or amortized cost.

We designate certain securities held by our insurance subsidiaries that support our insurance and investment contract liabilities at FVTPL, since the changes in financial variables used to calculate insurance and investment contract liabilities are recorded through our Consolidated Statement of Income in each period. This designation aligns the accounting result with the way the portfolio is managed in order to reduce an accounting mismatch with respect to unrealized gains and losses, as the change in fair value of the securities, investment contract liabilities designated at fair value and the impact of the change in discount rates and financial assumptions on insurance contract liabilities are all recorded through the Consolidated Statement of Income in

non-interest

revenue, insurance investment results. These securities had a fair value of $13,536 million as at October 31, 2025 ($12,214 million as at October 31, 2024). The maximum exposure to credit risk from securities designated at FVTPL is the carrying value of these securities.

Securities Mandatorily Measured at FVTPL

Securities managed on a fair value basis, but not held for trading, or debt securities with cash flows that do not represent solely payments of principal and interest, and equity securities not held for trading or designated at FVOCI, are classified as FVTPL. These securities had a fair value of $

7,818

million as at October 31, 2025 ($

6,850

million as at October 31, 2024).

Investments in Low Income Housing Tax Credit (LIHTC) entities are included in this balance as they are classified as FVTPL, with both changes in fair value of the investments and the benefit of tax credits received recorded in non-interest revenue, securities gains, other than trading. The fair value of these investments
was $

1,136 million as at October 31, 2025 ($900 million as at October 31, 2024).

Debt securities at FVOCI

are debt securities purchased with the objective of both collecting contractual cash flows and selling the securities. The securities’ cash flows represent solely payments of principal and interest. These securities may be sold in response to, or in anticipation of, changes in interest rates and any resulting prepayment risk, changes in credit risk, changes in foreign currency risk or changes in funding sources or terms, or in order to meet liquidity needs.

Debt securities measured at FVOCI are initially recorded at fair value plus transaction costs. They are subsequently measured at fair value, with unrealized gains and losses recorded in our Consolidated Statement of Comprehensive Income until the security is sold or impaired. Gains and losses on disposal and impairment losses (recoveries) are recorded in our Consolidated Statement of Income in

non-interest

revenue, securities gains, other than trading. Interest income earned is recorded in our Consolidated Statement of Income in interest, dividend and fee income, securities, using the effective interest method.

Equity securities at FVOCI

are equity securities for which we have elected to record changes in the fair value of the instrument in other comprehensive income as opposed to FVTPL. Gains or losses recorded on these instruments will never be recognized in profit or loss. Equity securities measured at FVOCI are not subject to an impairment assessment.

Debt securities at amortized cost

are debt securities purchased or originated with the objective of collecting contractual cash flows, and those cash flows represent solely payments of principal and interest. These securities are initially recorded at fair value plus transaction costs and are subsequently measured at amortized cost, using the effective interest method. Impairment losses (recoveries) are recorded in our Consolidated Statement of Income in

non-interest

revenue, securities gains, other than trading. Interest income earned and amortization of premiums, discounts and transaction costs are recorded in our Consolidated Statement of Income in interest, dividend and fee income, securities.

We account for all of our securities transactions using trade date accounting in our Consolidated Balance Sheet.

Impairment Review

Debt securities measured at amortized cost or FVOCI are assessed for impairment using the ECL model, with the exception of those determined to have low credit risk, where the ACL is measured at an amount equal to

12-month

ECL. A debt security is considered to have low credit risk if it has a low risk of default, and if the borrower has a strong capacity to meet its contractual cash flow obligations in the near term and adverse changes in economic and business conditions in the longer term may, but will not necessarily, reduce the ability of the borrower to fulfill its contractual cash flow obligations. All of our debt securities have a credit risk rating of investment grade.

Debt securities measured at amortized cost totalled $96,610 million as at October 31, 2025 ($115,188 million as at October 31, 2024), net of ACL of $4 million as at October 31, 2025 ($3 million as at October 31, 2024).

Debt securities measured at FVOCI totalled $113,209 million as at October 31, 2025 ($93,702 million as at October 31, 2024). ACL related to these FVOCI debt securities of $6 million as at October 31, 2025 ($4 million as at October 31, 2024) is included in Accumulated Other Comprehensive Income.

Fair Value Measurement

For traded securities, quoted market value is considered to be fair value. Quoted market value is based on bid or ask prices, depending on which is the most appropriate to measure fair value. Where market quotes are not available, we use estimation techniques to determine fair value. Additional information regarding fair value measurement techniques is included in Note 17.

Remaining Term to Maturity of Securities

The following table shows the remaining terms to maturity of securities:


(Canadian $ in millions, except as noted)	Term to maturity												2025		2024
	Within 1 year		1 to 3 years		3 to 5 years		5 to 10 years		Over 10 years		No specific maturity		Total		Total
Trading Securities
Issued or guaranteed by:
Canadian federal government	$	1,170	$	2,342	$	1,003	$	3,481	$	4,315	$	–	$	12,311	$	10,036
Canadian provincial and municipal governments		715		316		1,494		2,007		4,503		–		9,035		7,585
U.S. federal government		4,123		9,180		3,237		6,135		8,227		–		30,902		24,248
U.S. states, municipalities and agencies		–		34		214		429		467		–		1,144		565
Other governments		592		1,177		1,348		740		269		–		4,126		3,849
NHA MBS, U.S. agency MBS and CMO (1)		1,103		176		467		928		53,776		–		56,450		40,995
Corporate debt		1,377		3,030		2,259		2,365		2,583		–		11,614		10,172
Trading loans		1		976		1,641		1,950		–		–		4,568		5,493
Corporate equity		–		–		–		–		–		62,153		62,153		65,983
Total trading securities		9,081		17,231		11,663		18,035		74,140		62,153		192,303		168,926
FVTPL Securities
Issued or guaranteed by:
Canadian federal government		876		7		146		342		248		–		1,619		403
Canadian provincial and municipal governments		1		6		19		116		1,436		–		1,578		1,578
U.S. federal government		4		–		–		–		1,491		–		1,495		1,527
Other governments		–		–		–		–		–		–		–		25
NHA MBS, U.S. agency MBS and CMO (1)		–		11		–		7		–		–		18		21
Corporate debt		227		273		246		1,133		7,029		–		8,908		8,780
Corporate equity		–		–		–		–		–		7,736		7,736		6,730
Total FVTPL securities		1,108		297		411		1,598		10,204		7,736		21,354		19,064
FVOCI Securities
Issued or guaranteed by:
Canadian federal government
Amortized cost		15,795		15,202		10,077		3,820		–		–		44,894		33,892
Fair value		15,819		15,287		10,271		3,958		–		–		45,335		34,177
Yield (%)		2.29		2.48		2.78		3.08		–		–		2.53		3.33
Canadian provincial and municipal governments
Amortized cost		470		1,041		2,925		1,072		17		–		5,525		5,939
Fair value		470		1,061		2,986		1,112		15		–		5,644		5,996
Yield (%)		2.52		3.05		3.32		3.47		4.07		–		3.23		3.61
U.S. federal government
Amortized cost		844		3,769		9,270		6,358		274		–		20,515		17,033
Fair value		845		3,797		9,434		6,458		275		–		20,809		16,965
Yield (%)		3.61		3.88		3.75		3.92		4.64		–		3.83		4.06
U.S. states, municipalities and agencies
Amortized cost		399		538		732		3,408		545		–		5,622		5,125
Fair value		398		534		733		3,423		546		–		5,634		5,068
Yield (%)		2.89		2.87		3.06		3.02		4.77		–		3.17		4.04
Other governments
Amortized cost		1,521		1,607		911		–		–		–		4,039		5,643
Fair value		1,521		1,624		920		–		–		–		4,065		5,656
Yield (%)		2.28		3.49		3.66		–		–		–		3.07		3.15
NHA MBS, U.S. agency MBS and CMO (1)
Amortized cost		112		1,451		10,628		3,783		10,972		–		26,946		21,570
Fair value		111		1,457		10,776		3,834		10,837		–		27,015		21,293
Yield (%)		2.46		3.46		4.19		3.90		4.02		–		4.03		3.92
Corporate debt
Amortized cost		1,663		523		550		1,686		69		–		4,491		4,391
Fair value		1,664		530		557		1,699		65		–		4,515		4,370
Yield (%)		4.48		2.69		3.35		4.79		5.02		–		4.26		2.67
Corporate equity
Cost		–		–		–		–		–		165		165		135
Fair value		–		–		–		–		–		192		192		177
Total cost or amortized cost		20,804		24,131		35,093		20,127		11,877		165		112,197		93,728
Total fair value		20,828		24,290		35,677		20,484		11,738		192		113,209		93,702
Yield (%)		2.54		2.86		3.55		3.65		4.07		–		3.28		3.61
Amortized Cost Securities (2)
Issued or guaranteed by:
Canadian federal government
Amortized cost		538		376		–		35		–		–		949		2,465
Fair value		532		376		–		35		–		–		943		2,403
Yield (%)		3.43		2.74		–		3.12		–		–		3.15		1.81
Canadian provincial and municipal governments
Amortized cost		720		1,099		1,495		2,868		–		–		6,182		4,488
Fair value		719		1,106		1,506		2,889		–		–		6,220		4,216
Yield (%)		2.84		2.50		2.86		3.45		–		–		3.07		2.38
U.S. federal government
Amortized cost		773		17,536		12,377		8,992		3,790		–		43,468		55,421
Fair value		765		17,037		11,601		7,980		3,049		–		40,432		51,319
Yield (%)		3.87		2.74		2.32		2.69		3.96		–		2.74		1.49
U.S. states, municipalities and agencies
Amortized cost		–		–		–		165		–		–		165		182
Fair value		–		–		–		167		–		–		167		180
Yield (%)		–		–		–		4.66		–		–		4.66		4.65
Other governments
Amortized cost		186		217		122		–		–		–		525		681
Fair value		186		217		120		–		–		–		523		675
Yield (%)		3.76		3.96		4.00		–		–		–		3.90		1.80
NHA MBS, U.S. agency MBS and CMO (1)
Amortized cost		1,127		3,783		455		2,532		29,873		–		37,770		42,773
Fair value		1,119		3,670		425		2,317		27,307		–		34,838		38,619
Yield (%)		2.51		1.78		1.84		1.69		2.81		–		2.61		2.58
Corporate debt
Amortized cost		392		664		140		58		6,297		–		7,551		9,178
Fair value		387		660		141		57		6,080		–		7,325		9,049
Yield (%)		3.73		3.97		2.94		3.73		5.06		–		4.85		4.57
Total carrying value		3,736		23,675		14,589		14,650		39,960		–		96,610		115,188
Total fair value		3,708		23,066		13,793		13,445		36,436		–		90,448		106,461
Yield (%)		3.18		2.62		2.38		2.69		3.27		–		2.89		2.19
Total carrying value of securities		34,753		65,493		62,340		54,767		136,042		70,081		423,476		396,880
Total by Currency (Canadian $ equivalent)
Canadian dollar		23,158		24,896		16,194		15,622		18,796		27,159		125,825		111,370
U.S. dollar		10,390		39,787		45,617		38,820		116,911		41,434		292,959		278,558
Other currencies		1,205		810		529		325		335		1,488		4,692		6,952
Total securities	$	34,753	$	65,493	$	62,340	$	54,767	$	136,042	$	70,081	$	423,476	$	396,880

(1)

These amounts are either supported by insured mortgages or issued by U.S. agencies and government-sponsored enterprises. NHA refers to the National Housing Act, MBS refers to mortgage-backed securities and CMO refers to collateralized mortgage obligations.

(2)

The carrying values of securities that are part of fair value hedging relationships are adjusted for related gains (losses) on hedge contracts.

Yields in the table above are calculated using the cost of the security and the contractual interest rate associated with each security, adjusted for any amortization of premiums and discounts. Tax effects are not taken into consideration. The terms to maturity included in the table above are based on the contractual maturity dates of the securities. Actual maturities could differ, as issuers may have the right to call or prepay obligations.

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

Unrealized Gains and Losses on FVOCI Securities

The following table summarizes unrealized gains and losses on FVOCI securities:


(Canadian $ in millions)								2025									2024
	Cost or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value		Cost or amortized cost		Gross unrealized gains		Gross unrealized losses			Fair value
Issued or guaranteed by:
Canadian federal government	$	44,894	$	443	$	(2	)	$	45,335	$	33,892	$	303	$	(18	)	$	34,177
Canadian provincial and municipal governments		5,525		132		(13	)		5,644		5,939		82		(25	)		5,996
U.S. federal government		20,515		327		(33	)		20,809		17,033		100		(168	)		16,965
U.S. states, municipalities and agencies		5,622		77		(65	)		5,634		5,125		24		(81	)		5,068
Other governments		4,039		35		(9	)		4,065		5,643		20		(7	)		5,656
NHA MBS, U.S. agency MBS and CMO		26,946		291		(222	)		27,015		21,570		58		(335	)		21,293
Corporate debt		4,491		37		(13	)		4,515		4,391		31		(52	)		4,370
Corporate equity		165		27		–			192		135		42		–			177
Total	$	112,197	$	1,369	$	(357	)	$	113,209	$	93,728	$	660	$	(686	)	$	93,702

Unrealized gains (losses) may be offset by related (losses) gains on hedge contracts.

Interest, Dividend and Fee Income

Interest, dividend and fee income has been included in our Consolidated Statement of Income as follows. Related income for trading securities is included under trading-related revenue in Note 17.


(Canadian $ in millions)	2025		2024
FVTPL securities	$	143	$	161
FVOCI securities		4,427		3,874
Amortized cost securities		2,709		3,952
Total	$	7,279	$	7,987

Non-Interest

Revenue

Net gains and losses from securities, excluding gains and losses on trading securities, have been included in our Consolidated Statement of Income as follows:


(Canadian $ in millions)	2025			2024
FVTPL securities	$	201		$	87
FVOCI securities – realized gains (1)		89			114
Impairment on FVOCI and amortized cost securities		(3	)		(1	)
Securities gains, other than trading	$	287		$	200

(1)

Gains are net of (losses) on hedge contracts.

Gains and losses on trading securities are included under trading-related revenue in Note 17.

Interest and dividend income and gains on securities held in our Insurance business are recorded in

non-interest

revenue, insurance investment results, in our Consolidated Statement of Income as follows:


(Canadian $ in millions)	2025		2024
Interest and dividend income	$	546	$	515
Gains from securities designated at FVTPL (1)		374		1,270
Realized gains from FVOCI securities		–		1
Total interest and dividend income and gains held in our Insurance business	$	920	$	1,786

(1)

Gains (losses) on these securities may be offset by certain (losses) gains from changes in insurance-related liabilities, as described above under Securities Designated at FVTPL.