Derivative Financial Instruments (Tables)

12 Months Ended

Oct. 31, 2025

Summary of Derivative Financial Instruments at Notional Value


	2025						2024
As at October 31 ($ millions)	Trading		Hedging		Total		Trading		Hedging		Total
Interest rate contracts
Exchange-traded:
Futures	$	763,135	$	–	$	763,135	$	606,019	$	–	$	606,019
Options purchased		2,686		–		2,686		5,848		–		5,848
Options written		2,545		–		2,545		5,430		–		5,430
		768,366		–		768,366		617,297		–		617,297
Over-the-counter:
Forward rate agreements		315		–		315		215		–		215
Swaps		467,384		58,791		526,175		427,122		53,481		480,603
Options purchased		84,306		–		84,306		45,572		–		45,572
Options written		83,090		–		83,090		49,595		–		49,595
		635,095		58,791		693,886		522,504		53,481		575,985
Over-the-counter (settled through central counterparties):
Forward rate agreements		157,033		–		157,033		86,657		–		86,657
Swaps		8,630,261		344,717		8,974,978		5,694,823		278,314		5,973,137
Options purchased		–		–		–		–		–		–
Options written		–		–		–		–		–		–
		8,787,294		344,717		9,132,011		5,781,480		278,314		6,059,794
Total	$	10,190,755	$	403,508	$	10,594,263	$	6,921,281	$	331,795	$	7,253,076
Foreign exchange and gold contracts
Exchange-traded:
Futures	$	18,665	$	–	$	18,665	$	21,952	$	–	$	21,952
Options purchased		–		–		–		–		–		–
Options written		–		–		–		–		–		–
		18,665		–		18,665		21,952		–		21,952
Over-the-counter:
Spot and forwards		581,518		20,870		602,388		541,732		21,156		562,888
Swaps		869,035		102,579		971,614		771,246		108,558		879,804
Options purchased		32,750		–		32,750		25,135		–		25,135
Options written		46,781		–		46,781		36,390		–		36,390
		1,530,084		123,449		1,653,533		1,374,503		129,714		1,504,217
Over-the-counter (settled through central counterparties):
Spot and forwards		34,708		–		34,708		24,865		–		24,865
Swaps		–		–		–		–		–		–
Options purchased		–		–		–		–		–		–
Options written		–		–		–		–		–		–
		34,708		–		34,708		24,865		–		24,865
Total	$	1,583,457	$	123,449	$	1,706,906	$	1,421,320	$	129,714	$	1,551,034
Other derivative contracts
Exchange-traded:
Equity	$	128,297	$	–	$	128,297	$	59,329	$	–	$	59,329
Credit		–		–		–		–		–		–
Commodity and other contracts		39,897		–		39,897		46,304		–		46,304
		168,194		–		168,194		105,633		–		105,633
Over-the-counter:
Equity		131,393		1,284		132,677		83,455		965		84,420
Credit		20,457		–		20,457		18,086		–		18,086
Commodity and other contracts		40,993		–		40,993		36,596		–		36,596
		192,843		1,284		194,127		138,137		965		139,102
Over-the-counter (settled through central counterparties):
Equity		–		–		–		–		–		–
Credit		7,374		–		7,374		9,069		–		9,069
Commodity and other contracts		501		–		501		251		–		251
		7,875		–		7,875		9,320		–		9,320
Total	$	368,912	$	1,284	$	370,196	$	253,090	$	965	$	254,055
Total notional amounts outstanding	$	12,143,124	$	528,241	$	12,671,365	$	8,595,691	$	462,474	$	9,058,165

(1)	The notional amounts represent the amount to which a rate or price is applied to determine the amount of cash flows to be exchanged.

Summary of Remaining Term to Maturity of Notional Amounts of Bank's Derivative Financial Instruments

The following table summarizes the remaining term to maturity of the notional amounts of the Bank’s derivative financial instruments by type:


As at October 31, 2025 ($ millions)	Within one year		One to five years		Over five years		Total
Interest rate contracts
Futures	$	617,714	$	145,421	$	–	$	763,135
Forward rate agreements		122,168		34,865		315		157,348
Swaps		4,604,519		3,089,234		1,807,400		9,501,153
Options purchased		66,995		17,710		2,287		86,992
Options written		51,546		21,347		12,742		85,635
		5,462,942		3,308,577		1,822,744		10,594,263
Foreign exchange and gold contracts
Futures		16,134		2,482		49		18,665
Spot and forwards		593,082		37,899		6,115		637,096
Swaps		243,425		489,190		238,999		971,614
Options purchased		25,053		7,183		514		32,750
Options written		37,985		8,230		566		46,781
		915,679		544,984		246,243		1,706,906
Other derivative contracts
Equity		195,981		63,216		1,777		260,974
Credit		16,976		8,308		2,547		27,831
Commodity and other contracts		61,121		20,102		168		81,391
		274,078		91,626		4,492		370,196
Total	$	6,652,699	$	3,945,187	$	2,073,479	$	12,671,365

As at October 31, 2024 ($ millions)	Within one year		One to five years		Over five years		Total
Interest rate contracts
Futures	$	478,886	$	127,133	$	–	$	606,019
Forward rate agreements		85,447		1,217		208		86,872
Swaps		2,190,218		2,760,062		1,503,460		6,453,740
Options purchased		30,562		18,095		2,763		51,420
Options written		23,960		19,897		11,168		55,025
		2,809,073		2,926,404		1,517,599		7,253,076
Foreign exchange and gold contracts
Futures		16,289		5,663		–		21,952
Spot and forwards		543,486		38,039		6,228		587,753
Swaps		210,318		455,694		213,792		879,804
Options purchased		18,121		6,788		226		25,135
Options written		28,533		7,662		195		36,390
		816,747		513,846		220,441		1,551,034
Other derivative contracts
Equity		103,234		39,521		994		143,749
Credit		12,661		9,553		4,941		27,155
Commodity and other contracts		57,307		25,467		377		83,151
		173,202		74,541		6,312		254,055
Total	$	3,799,022	$	3,514,791	$	1,744,352	$	9,058,165

Summary of Credit Exposure of Derivative Financial Instruments


	2025								2024
As at October 31 ($ millions)	Notional amount		Credit risk amount (CRA) (1)		Credit equivalent amount (CEA) (1)		Risk- Weighted Assets		Notional amount		Credit risk amount (CRA) (1)		Credit equivalent amount (CEA) (1)		Risk- Weighted Assets
Interest rate contracts
Futures	$	763,135	$	–	$	73	$	3	$	606,019	$	–	$	27	$	1
Forward rate agreements		157,348		61		38		22		86,872		70		88		57
Swaps		9,501,153		2,769		4,402		1,123		6,453,740		4,052		4,157		876
Options purchased		86,992		18		163		51		51,420		13		229		56
Options written		85,635		–		31		6		55,025		–		16		4
		10,594,263		2,848		4,707		1,205		7,253,076		4,135		4,517		994
Foreign exchange and gold contracts
Futures		18,665		–		891		18		21,952		–		354		7
Spot and forwards		637,096		1,741		5,758		1,417		587,753		1,560		4,868		1,168
Swaps		971,614		53		9,603		2,132		879,804		40		7,965		1,472
Options purchased		32,750		399		592		210		25,135		343		633		214
Options written		46,781		–		52		13		36,390		–		19		4
		1,706,906		2,193		16,896		3,790		1,551,034		1,943		13,839		2,865
Other derivative contracts
Equity		260,974		1,726		12,157		2,115		143,749		1,586		10,848		1,742
Credit		27,831		105		131		50		27,155		107		141		29
Commodity and other contracts		81,391		1,807		3,419		452		83,151		1,098		3,259		487
		370,196		3,638		15,707		2,617		254,055		2,791		14,248		2,258
Credit Valuation Adjustment		–		–		–		5,394		–		–		–		4,631
Total derivatives	$	12,671,365	$	8,679	$	37,310	$	13,006	$	9,058,165	$	8,869	$	32,604	$	10,748
Amount settled through central counterparties (2)
Exchange-traded		955,225		–		5,175		122		744,882		–		5,158		117
Over-the-counter		9,174,594		–		861		17		6,093,979		–		1,063		21
	$	10,129,819	$	–	$	6,036	$	139	$	6,838,861	$	–	$	6,221	$	138

(1)	The amounts presented are net of collateral and master netting agreements at the product level. The total amounts relating to netting and collateral were $37,853 (2024 – $35,510) for CRA, and $102,031 (2024 – $87,284) for CEA.

(2)	Amounts are included under total derivatives above. Amounts include exposures settled directly through central counterparties and exposures settled through clearing members of central counterparties.

1	Regulatory haircuts prescribed by the OSFI CAR Guidelines are applied to the collateral balances of the CRA measure.

Summary of Financial Derivatives at Fair Value

The following table summarizes the fair value of derivatives segregated by type and segregated between trading and those derivatives designated in hedging relationships.


As at October 31 ($ millions)	2025				2025				2024
	Average fair value				Year-end fair value				Year-end fair value (1)
	Favourable		Unfavourable		Favourable		Unfavourable		Favourable		Unfavourable
Trading
Interest rate contracts
Forward rate agreements	$	90	$	69	$	61	$	91	$	70	$	72
Swaps		7,398		11,440		6,865		10,294		7,767		9,357
Options		454		500		261		443		803		496
		7,942		12,009		7,187		10,828		8,640		9,925
Foreign exchange and gold contracts
Forwards		6,568		5,929		6,726		5,332		6,672		5,482
Swaps		11,439		13,833		11,107		14,814		11,110		14,272
Options		604		575		538		494		492		446
		18,611		20,337		18,371		20,640		18,274		20,200
Other derivative contracts
Equity		5,582		7,543		7,350		10,114		4,469		4,844
Credit		230		28		273		26		182		47
Commodity and other contracts		2,516		3,545		2,610		2,909		2,102		2,560
		8,328		11,116		10,233		13,049		6,753		7,451
Trading derivatives’ market valuation	$	34,881	$	43,462	$	35,791	$	44,517	$	33,667	$	37,576
Hedging
Interest rate contracts
Swaps					$	2,620	$	6,361	$	2,944	$	7,983
Foreign exchange and gold contracts
Forwards						46		847		410		255
Swaps						7,995		4,306		7,320		5,445
					$	8,041	$	5,153	$	7,730	$	5,700
Other derivative contracts
Equity					$	79	$	–	$	38	$	1
Hedging derivatives’ market valuation					$	10,740	$	11,514	$	10,712	$	13,684
Total derivative financial instruments as per Statement of Financial Position					$	46,531	$	56,031	$	44,379	$	51,260

(1)	The average fair value of trading derivatives’ market valuation for the year ended October 31, 2024 was: favourable $29,999 and unfavourable $32,133. Average fair value amounts are based on the latest 13 month-end balances.

Summary of Notional Amount of Derivatives and Carrying Amount of Deposit Liabilities

The following table summarizes the notional amounts of derivatives and carrying amounts of cash and deposit liabilities designated as hedging instruments.


	2025								2024
	Notional amounts (1)								Notional amounts (1)
	Remaining term to maturity								Remaining term to maturity
As at October 31 ($ millions)	Within one year		One to five years		Over five years		Total		Within one year		One to five years		Over five years		Total
Fair value hedges
Interest rate risk – swaps	$	53,192	$	155,430	$	31,966	$	240,588	$	32,689	$	137,123	$	25,427	$	195,239
Foreign currency/interest rate risk – swaps		–		420		–		420		–		–		–		–

Cash flow hedges
Interest rate risk – swaps		57,151		73,038		9,315		139,504		29,411		72,802		13,160		115,373
Foreign currency/interest rate risk – swaps		6,542		16,892		5,485		28,919		5,516		19,291		4,359		29,166
Foreign currency risk
Swaps		44,824		88,035		15,142		148,001		50,198		93,095		19,808		163,101
Foreign currency forwards		266		–		–		266		–		–		–		–
Cash		92		–		–		92		74		–		–		74
Equity risk – total return swaps		576		708		–		1,284		278		687		–		965

Net investment hedges
Foreign currency risk
Foreign currency forwards		20,604		–		–		20,604		21,156		–		–		21,156
Deposit liabilities		6,287		–		–		6,287		7,571		–		–		7,571
Total	$	189,534	$	334,523	$	61,908	$	585,965	$	146,893	$	322,998	$	62,754	$	532,645

(1)	Notional amounts relating to derivatives that are hedging multiple risks in both assets and liabilities are included in more than one category.

Summary of Average Price or Rate of Hedging Instruments

The following table shows the average rate or price of significant hedging instruments.

2025

2024

Average rate or price

(1)

Average rate or price

(1)

As at October 31

Fixed interest rate

FX rate

Price

Fixed interest rate

FX rate

Price

Fair value hedges

Interest rate risk – swaps

2.98

n/a

3.16

n/a

Cash flow hedges

Interest rate risk – swaps

3.26

n/a

3.16

n/a

Foreign currency/interest rate risk – swaps

USD-CAD

2.00

1.31

n/a

1.89

1.30

n/a

Foreign currency risk

Swaps

USD-CAD

n/a

1.34

n/a

1.31

n/a

EUR-CAD

n/a

1.47

n/a

1.46

n/a

GBP-CAD

n/a

1.74

n/a

1.70

n/a

Equity price risk – total return swaps

n/a

68.85

n/a

69.11

Net investment hedges

Foreign currency risk – foreign currency forwards

USD-CAD

n/a

1.37

n/a

1.35

n/a

CLP-CAD

n/a

0.0014

n/a

0.0014

n/a

MXN-CAD

n/a

0.07

n/a

0.07

n/a

PEN-CAD

n/a

0.38

n/a

0.36

n/a

(1)	The notional weighted average rate or price is calculated in aggregate for all of the Bank’s hedge relationships, including hedges of assets and liabilities.

Summary of Items designated as Hedging Instruments, Hedged Items and Ineffectiveness for Fair Value Hedges

For fair value hedges, the following table contains information related to items designated as hedging instruments, hedged items and ineffectiveness.


	Carrying amount of the hedging instruments (1)					Hedge Ineffectiveness (2)												Accumulated amount of fair value hedge adjustment gains/ (losses) on the hedged item (4)
For the year ended October 31, 2025 ($ millions)	Assets		Liabilities			Gains/ (losses) on hedging instrument used to calculate hedge ineffectiveness			Gains/ (losses) on hedged item used to calculate hedge ineffectiveness			Ineffectiveness recorded in non-interest income – other			Carrying amount of the hedged item (3)			Active hedges			Discontinued hedges
Fair value hedges
Interest rate risk – swaps	$	1,542	$	(2,408	)	$	73		$	(95	)	$	(22	)
Investment securities							(493	)		481			(12	)	$	79,836		$	1,519		$	(679	)
Loans							(402	)		388			(14	)		109,149			287			112
Deposit liabilities							906			(902	)		4			(72,001	)		90			212
Subordinated debentures							62			(62	)		–			(4,131	)		(41	)		–

Foreign currency/interest
rate risk – swaps		–		(23	)		6			(6	)		–			(432	)		(6	)		–
Deposit liabilities		–		(23	)		6			(6	)		–			(432	)		(6	)		–
Total	$	1,542	$	(2,431	)	$	79		$	(101	)	$	(22	)	$	112,421		$	1,849		$	(355	)

(1)	Comprises unrealized gains/losses and are recorded within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Statement of Financial Position.

(2)	Includes ineffectiveness related to hedges discontinued during the year ended October 31, 2025.

(3)	This represents the carrying value on the Consolidated Statement of Financial Position and comprises amortized cost before allowance for credit losses, plus fair value hedge adjustment, except for investment securities which are carried at fair value.

(4)	This represents the accumulated fair value hedge adjustment and is a component of the carrying amount of the hedged item, except for investment securities which are carried at fair value.


	Carrying amount of the hedging instruments (1)					Hedge Ineffectiveness (2)												Accumulated amount of fair value hedge adjustment gains/ (losses) on the hedged item (4)
For the year ended October 31, 2024 ($ millions)	Assets		Liabilities			Gains/ (losses) on hedging instrument used to calculate hedge ineffectiveness			Gains/ (losses) on hedged item used to calculate hedge ineffectiveness			Ineffectiveness recorded in non-interest income – other			Carrying amount of the hedged item (3)			Active hedges			Discontinued hedges
Fair value hedges
Interest rate risk – swaps	$	2,064	$	(2,672	)	$	(197	)	$	160		$	(37	)
Investment securities							(1,493	)		1,484			(9	)	$	72,595		$	1,274		$	(1,392	)
Loans							(876	)		851			(25	)		91,354			(35	)		(268	)
Deposit liabilities							1,955			(1,959	)		(4	)		(71,363	)		986			446
Subordinated debentures							217			(216	)		1			(4,293	)		21			(1	)
Total	$	2,064	$	(2,672	)	$	(197	)	$	160		$	(37	)	$	88,293		$	2,246		$	(1,215	)

(1)	Comprises unrealized gains/losses and are recorded within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Statement of Financial Position.

(2)	Includes ineffectiveness related to hedges discontinued during the year ended October 31, 2024.

(3)	This represents the carrying value on the Consolidated Statement of Financial Position and comprises amortized cost before allowance for credit losses, plus fair value hedge adjustment, except for investment securities which are carried at fair value.

(4)	This represents the accumulated fair value hedge adjustment and is a component of the carrying amount of the hedged item, except for investment securities which are carried at fair value.

Summary of Effectiveness of Cash Flow and Net Investment Hedges on Consolidated Statement of Other Comprehensive Income

For cash flow hedges and net investment hedges, the following table contains information related to items designated as hedging instruments, hedged items and ineffectiveness.


	Carrying amount of the hedging instruments (1)					Hedge Ineffectiveness (2)
For the year ended October 31, 2025 ($ millions)	Assets		Liabilities			Gains/(losses) on hedging instrument used to calculate hedge ineffectiveness			Gains/(losses) on hypothetical derivative used to calculate hedge ineffectiveness (3)			Ineffectiveness recorded in non-interest income – other (4)
Cash flow hedges
Interest rate risk – swaps	$	1,969	$	(3,746	)	$	171		$	169		$	(5	)
Foreign currency/interest rate risk – swaps		200		(1,949	)		173			166			5
Foreign currency risk
Swaps		6,904		(2,541	)		3,242			3,259			(9	)
Foreign currency forwards		–		(7	)		(3	)		(3	)		–
Cash		92		–			(12	)		(12	)		–
Equity risk – total return swaps		79		–			357			357			–
		9,244		(8,243	)		3,928			3,936			(9	)
Net investment hedges
Foreign currency risk
Foreign currency forwards		46		(840	)		(1,294	)		(1,294	)		–
Deposit liabilities		n/a		(6,287	)		(67	)		(66	)		–
		46		(7,127	)		(1,361	)		(1,360	)		–
Total	$	9,290	$	(15,370	)	$	2,567		$	2,576		$	(9	)

(1)	Comprises unrealized gains/losses for derivative instruments and are recorded within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Statement of Financial Position.

(2)	Includes ineffectiveness related to hedges discontinued during the year ended October 31, 2025.

(3)	For cash flow hedges, hypothetical derivatives having critical terms which match those of the underlying hedged item are used to assess hedge ineffectiveness.

(4)	For cash flow hedges, ineffectiveness is only recognized in the Consolidated Statement of Income when the life-to-date cumulative change in the hedging instrument exceeds the cumulative change in the hypothetical derivative.



	Carrying amount of the hedging instruments (1)					Hedge Ineffectiveness (2)
For the year ended October 31, 2024 ($ millions)	Assets		Liabilities			Gains/(losses) on hedging instrument used to calculate hedge ineffectiveness			Gains/(losses) on hypothetical derivative used to calculate hedge ineffectiveness (3)			Ineffectiveness recorded in non-interest income – other (4)
Cash flow hedges
Interest rate risk – swaps	$	1,865	$	(4,699	)	$	1,775		$	1,774		$	29
Foreign currency/interest rate risk – swaps		245		(2,407	)		1,363			1,369			7
Foreign currency risk
Swaps		6,090		(3,650	)		1,826			1,787			10
Foreign currency forwards		–		–			5			5			–
Cash		74		–			9			9			–
Equity risk – total return swaps		38		(1	)		263			263			–
		8,312		(10,757	)		5,241			5,207			46
Net investment hedges
Foreign currency risk
Foreign currency forwards		410		(255	)		178			178			–
Deposit liabilities		n/a		(7,571	)		(62	)		(62	)		–
		410		(7,826	)		116			116			–
Total	$	8,722	$	(18,583	)	$	5,357		$	5,323		$	46

(1)	Comprises unrealized gains/losses for derivative instruments and are recorded within derivative financial instruments in assets and liabilities, respectively, in the Consolidated Statement of Financial Position.

(2)	Includes ineffectiveness related to hedges discontinued during the year ended October 31, 2024.

(3)	For cash flow hedges, hypothetical derivatives having critical terms which match those of the underlying hedged item are used to assess hedge ineffectiveness.

(4)	For cash flow hedges, ineffectiveness is only recognized in the Consolidated Statement of Income when the life-to-date cumulative change in the hedging instrument exceeds the cumulative change in the hypothetical derivative.

Schedule of Period When Cash Flows of Designated Hedged Items are Expected to Occur and Impact Consolidated Statement of Income

For cash flow hedges and net investment hedges, the following table contains information regarding the impacts on the Consolidated Statement of Other Comprehensive Income on a

pre-tax

basis.


	AOCI gains/ (losses) as at November 1, 2024			Net gains/ (losses) recognized in OCI			Amount reclassified to net income as the hedged item affects net income (1)			AOCI gains/ (losses) as at October 31, 2025			Balance in cash flow hedge reserve/unrealized foreign currency translation account as at October 31, 2025
For the year ended October 31, 2025 ($ millions)	AOCI gains/ (losses) as at November 1, 2024			Net gains/ (losses) recognized in OCI						AOCI gains/ (losses) as at October 31, 2025			Active hedges			Discontinued hedges
Cash flow hedges
Interest rate risk	$	(1,176	)	$	176		$	742		$	(258	)	$	332		$	(590	)
Foreign currency/interest rate risk		(699	)		168			249			(282	)		(296	)		14
Foreign currency risk		(1,197	)		3,236			(3,165	)		(1,126	)		(1,102	)		(24	)
Equity risk		57			357			(319	)		95			95			–
		(3,015	)		3,937			(2,493	)		(1,571	)		(971	)		(600	)
Net investment hedges
Foreign currency risk		(3,175	)		(1,361	)		139			(4,397	)		(4,326	)		(71	)
Total	$	(6,190	)	$	2,576		$	(2,354	)	$	(5,968	)	$	(5,297	)	$	(671	)

(1)	Amounts reclassified from the cash flow hedge and net investment hedge reserves to net income are recorded in non-interest income-other except for amortization, which is recorded in interest income.


	AOCI gains/ (losses) as at November 1, 2023			Net gains/ (losses) recognized in OCI		Amount reclassified to net income as the hedged item affects net income (1)			AOCI gains/ (losses) as at October 31, 2024			Balance in cash flow hedge reserve/unrealized foreign currency translation account as at October 31, 2024
For the year ended October 31, 2024 ($ millions)	AOCI gains/ (losses) as at November 1, 2023			Net gains/ (losses) recognized in OCI					AOCI gains/ (losses) as at October 31, 2024			Active hedges			Discontinued hedges
Cash flow hedges
Interest rate risk	$	(3,480	)	$	1,746	$	558		$	(1,176	)	$	(490	)	$	(686	)
Foreign currency/interest rate risk		(2,007	)		1,356		(48)			(699	)		(733	)		34
Foreign currency risk		(703	)		1,830		(2,324	)		(1,197	)		(1,158	)		(39	)
Equity risk		(20	)		263		(186	)		57			57			–
		(6,210	)		5,195		(2,000	)		(3,015	)		(2,324	)		(691	)
Net investment hedges
Foreign currency risk		(4,061	)		116		770			(3,175	)		(3,102	)		(73	)
Total	$	(10,271	)	$	5,311	$	(1,230	)	$	(6,190	)	$	(5,426	)	$	(764	)

(1)	Amounts reclassified from the cash flow hedge and net investment hedge reserves to net income are recorded in non-interest income-other except for amortization, which is recorded in interest income.