x |
Annual
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
for
the fiscal year ended December 31,
2005.
|
o
|
Transition
report pursuant to Section 13 or 15(d) of the Securities Exchange
Act of
1934
for
the transition period from ________ to
________.
|
Maryland
|
52-2063921
|
(State
or other jurisdiction of
|
(I.R.S.
Employer
|
incorporation
or organization)
|
Identification
No.)
|
65
East 55TH
Street, 31st
Floor
|
|
New
York, New York
|
10022
|
(Address
of principal executive offices)
|
(Zip
code)
|
Year
Ended
December
31, 2005
|
Year
Ended
December
31, 2004
|
Year
Ended
December
31, 2003
|
Year
Ended
December
31, 2002
|
Year
Ended
December
31, 2001
|
||||||||||||
Statement
of Income Data:
|
||||||||||||||||
Operating
Revenues
|
|
$35,342,570
|
|
$36,322,291
|
|
$37,895,366
|
|
$37,707,287
|
|
$38,387,349
|
||||||
Income
from Operations
|
|
$33,344,602
|
|
$34,459,040
|
|
$36,103,421
|
|
$36,054,804
|
|
$36,800,230
|
||||||
Income
from Operations / Common Share
|
|
$333,446
|
|
$344,590
|
|
$361,034
|
|
$360,548
|
|
$368,002
|
||||||
Balance
Sheet Data:
|
||||||||||||||||
Total
assets
|
|
$479,610,581
|
|
$477,763,501
|
|
$478,884,177
|
|
$482,278,189
|
|
$481,787,476
|
||||||
Total
liabilities
|
|
$518,994
|
|
$444,371
|
|
$456,663
|
|
$386,175
|
|
$379,706
|
||||||
Stockholders’
Equity
|
|
$479,091,587
|
|
$477,319,130
|
|
$478,427,514
|
|
$481,892,014
|
|
$481,407,770
|
||||||
Cash
Dividends Declared / Common Share
|
|
$65,000
|
|
$105,000
|
|
$145,000
|
|
$105,000
|
|
$105,000
|
||||||
Quarter
Ended
March
31,
2005
|
Quarter
Ended
June
30,
2005
|
Quarter
Ended
September
30,
2005
|
Quarter
Ended
December
31,
2005
|
||||||||||
Statement
of Income Data:
|
|||||||||||||
Operating
Revenues
|
|
$8,888,526
|
|
$8,978,728
|
|
$8,693,089
|
|
$8,782,227
|
|||||
Income
from Operations
|
|
$8,399,897
|
|
$8,499,388
|
|
$8,187,874
|
|
$8,257,443
|
|||||
Income
from Operations per Common Share
|
|
$83,999
|
|
$84,994
|
|
$81,879
|
|
$82,574
|
|||||
Quarter
Ended
March
31,
2004
|
Quarter
Ended
June
30,
2004
|
Quarter
Ended
September
30,
2004
|
Quarter
Ended
December
31,
2004
|
||||||||||
Statement
of Income Data:
|
|||||||||||||
Operating
Revenues
|
|
$8,885,094
|
|
$9,339,454
|
|
$9,226,625
|
|
$8,871,118
|
|||||
Income
from Operations
|
|
$8,439,642
|
|
$8,874,899
|
|
$8,741,613
|
|
$8,402,886
|
|||||
Income
from Operations per Common Share
|
|
$84,396
|
|
$88,749
|
|
$87,416
|
|
$84,029
|
|||||
Name
|
Age
|
Position
and Offices Held
|
Director
Since
|
|||
Christian
Dubé
|
49
|
Director
and Member of the Audit Committee
|
2001
|
|||
Donna
Goral
|
48
|
Director
and Vice President
|
2001
|
|||
André
Belzile
|
44
|
Director
and Member of the Audit Committee
|
1999
|
|||
Alain
Michel
|
56
|
Director
and Chairman of the Audit Committee
|
1997
|
|||
Monique
Baillergeau
|
47
|
Director
and Vice President
|
2003
|
|||
Hoda
Abdelmessih
|
51
|
Director
and Vice President
|
2004
|
|||
Serge
Lacroix
|
47
|
Director,
Chairman of the Board and President
|
2002
|
|||
Jean
Dagenais
|
47
|
Chief
Financial Officer
|
N/A
|
Annual
Compensation
|
Long
Term
Compensation
Awards
|
||||||||||||||||||
Name
and Principal Position
|
Year
|
Salary
(US
$)
|
Bonus
(US
$)
|
Other
Annual
Compensation
|
Securities
Underlying
Options/SARs(3)
|
All
Other
Compensation
|
|||||||||||||
Serge
Lacroix, CEO
|
2005
|
$
|
184,704
|
$
|
95,000(1
|
)
|
$
|
0
|
—
|
—
|
|||||||||
2004
|
$
|
181,000
|
$
|
135,000(2
|
)
|
$
|
0
|
—
|
—
|
||||||||||
(1) |
$50,000
paid in June 2005 and $45,000 granted in December 2005 but paid in
January
2006.
|
(2)
|
$50,000
paid in May 2004 and $75,000 granted in December 2004 but paid in
January
2005; plus an extra $10,000 bonus paid in December 2004 by the Cross
border NY Group.
|
(3) |
“SAR”
means stock appreciation rights.
|
Individual
Grants
|
|||||||||||||||||||
Number
of
Securities
Underlying
Options/SARs
Granted
|
%
of Total
Options/SAR
Granted
to
Employees
in
Fiscal
|
Base
Price
|
Expiration
|
Potential
Realizable
Value at
Assumed
Annual
Rates
of Stock Price
Appreciation
For
Options/SAR Term
|
|||||||||||||||
Name
|
(#)
|
Year
|
(C$/Sh)
|
Date
|
5%
(C$)
|
10%
(C$)
|
|||||||||||||
Serge
Lacroix
|
0
|
0
|
%
|
Aggregated
Option/SAR Exercises in Last
Fiscal Year and FY-End Option/SAR Values
2005
|
|||||||||||||
Name
|
Shares
Acquired on Exercise (#)
|
Value
Realized ($)
|
Number
of Securities Underlying Unexercised Options/SARs at Fiscal Year-End
(#)
Exercisable / Unexercisable
|
Value
of Unexercised In-The-Money Options/SARs at Fiscal Year End (Canadian
$)
Exercisable / Unexercisable
|
|||||||||
Serge
Lacroix
|
0
|
0
|
4,425
/ 375
|
$
|
144,951
/ $11,014
|
Canadian
Dollars
Remuneration
|
Years
of Service
|
|||||||||||||||
15
|
20
|
25
|
30
|
35
|
||||||||||||
C$100,000
|
C$26,814
|
C$36,194
|
C$45,663
|
C$55,132
|
C$64,777
|
|||||||||||
125,000
|
34,314
|
46,194
|
58,163
|
70,132
|
82,277
|
|||||||||||
150,000
|
41,814
|
56,194
|
70,663
|
85,132
|
99,777
|
|||||||||||
175,000
|
49,314
|
66,194
|
83,163
|
100,132
|
117,277
|
|||||||||||
200,000
|
56,814
|
76,194
|
95,663
|
115,132
|
134,777
|
|||||||||||
225,000
|
64,314
|
86,194
|
108,163
|
130,132
|
152,277
|
|||||||||||
250,000
|
71,814
|
96,194
|
120,663
|
145,132
|
169,777
|
|||||||||||
300,000
|
71,814
|
96,194
|
120,663
|
145,132
|
169,777
|
(a) |
The
following documents are filed as part of this
report:
|
(1)
|
The
report of independent registered chartered accountants and financial
statements appearing in Item 8.
|
(2)
|
The
Company is not filing separately financial statement schedules because
of
the absence of conditions under which they are required or because
the
required information is included in the financial statements or the
notes
thereto.
|
(3)
|
The
exhibits required by this item are listed in the Exhibit Index which
appears elsewhere in this Form 10-K and is incorporated herein by
reference. The Company is not a party to any management contracts
or
compensation plans or arrangements required to be filed as exhibits
to
this Form 10-K.
|
(b)
|
During
the quarter ended December 31, 2005, the Company did not file any
Current
Reports on Form 8-K.
|
(c)
|
Each Series
A share is exchangeable, upon the occurrence of certain events, for
one newly issued 8.45% Non-Cumulative First Preferred Share, Series
Z, of
National Bank of Canada. National Bank of Canada is the parent
company of NB Capital Corporation and the holder of 100% of the
common shares of NB Capital Corporation. In light of this exchangeable
feature, the audited consolidated financial statements for the National
Bank of Canada for the years ended October 31, 2005 and October 31,
2004,
as well as the Independent Auditors' Report, are filed as part of
this annual report on Form 10-K.
|
NB CAPITAL CORPORATION | |
By: |
/s/
Donna
Goral
|
Donna
Goral
|
|
Chairman
of the Board and President
|
|
(Principal
Executive Officer)
|
|
By: |
/s/
Jean
Dagenais
|
Jean
Dagenais
|
|
Chief
Financial Officer
|
|
(Principal
Financial Officer)
|
By: |
/s/
Donna
Goral
|
By: |
/s/
Alain Michel
|
|
Donna
Goral
|
Alain
Michel
|
|||
Director
|
Director
|
|||
By: |
/s/
Hoda Abdelmessih
|
By: |
/s/
André Belzile
|
|
Hoda
Abdelmessih
|
André
Belzile
|
|||
Director
|
Director
|
|||
By: |
/s/
Christian Dubé
|
|||
Christian
Dubé
|
||||
Director
|
||||
By: |
/s/
Monique Baillergeau
|
|||
Monique
Baillergeau
|
||||
Director
|
||||
By: |
/s/
Vincent Lima
|
|||
Vincent
Lima
|
||||
Director
|
Exhibit Number | Description |
3.1.1
|
Articles
of Incorporation and Articles of Amendment and Restatement and
Articles
Supplementary of NB Capital
Corporation*
|
3.2.1
|
Bylaws
of NB Capital Corporation*
|
4.1
|
Registration
Rights Agreement dated as of September 3, 1997 by and among NB Capital
Corporation, National Bank of Canada and Merrill Lynch, Pierce, Fenner
& Smith Incorporated*
|
10.1
|
Advisory
Agreement dated as of September 3, 1997 between National Bank of
Canada
and NB Capital Corporation*
|
10.2
|
Servicing
Agreement dated as of September 3, 1997 between National Bank of
Canada
and NB Finance, Ltd.*
|
10.3
|
Loan
Agreement dated as of September 3, 1997 between NB Finance, Ltd.
and NB
Capital Corporation*
|
10.4
|
Custodial
Agreement dated as of September 3, 1997 between National Bank of
Canada
and NB Capital Corporation*
|
10.5
|
Deed
of Sale of Mortgage Loans dated September 3, 1997 between National
Bank of
Canada and NB Finance, Ltd.*
|
10.6
|
Mortgage
Loan Assignment Agreement dated September 3, 1997 among National
Bank of
Canada, NB Capital Corporation and NB Finance,
Ltd.*
|
10.7
|
Promissory
Notes representing the 16 hypothecation loans executed by NB Finance,
Ltd.
in favor of NB Capital Corporation*
|
10.8
|
Deposit
Agreement among NB Capital Corporation, National Bank of Canada and
The
Bank of Nova Scotia Trust Company of New York, including Form of
Depository Receipt*
|
10.9
|
First
Supplemental Servicing Agreement dated December 4, 1998 between National
Bank of Canada and NB Capital
Corporation*
|
10.10
|
Loan
Agreement dated as of December 4, 1998 between NB Finance, Ltd. and
NB
Capital Corporation*
|
10.11
|
Custodial
Agreement dated as of December 4, 1998 between NB Capital Corporation
and
National Bank of Canada*
|
10.12
|
Amended
and Restated Servicing Agreement dated June 28, 2001 between National
Bank
of Canada and NB Capital
Corporation.*
|
10.13
|
Deed
of Sale of Mortgage Loans dated December 4, 1998 between National
Bank of
Canada and NB Finance, Ltd.*
|
10.14(i)
|
Mortgage
Loan Assignment Agreement dated as of December 4, 1998 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.14(ii)
|
Mortgage
Loan Assignment Agreement dated as of December 4, 1998 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.15(i)
|
Promissory
Note representing $25,836,597.23 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.15(ii)
|
Promissory
Note representing $29,880,126.51 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.16
|
Mortgage
Loan Assignment Agreement dated as of September 7, 1999 among NB
Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.17
|
Promissory
Note representing $85,989,203.22 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*.
|
10.18
|
Mortgage
Loan Assignment Agreement dated as of April 14, 2000 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.19
|
Promissory
Note representing $98,836,341.23 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.20
|
Mortgage
Loan Assignment Agreement dated as of September 28, 2000 among NB
Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.21
|
Promissory
Note representing $67,323,437.74 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.22
|
Mortgage
Loan Assignment Agreement dated as of January 30, 2001 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.23 |
Promissory
Note representing $107,179,964.89 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.24
|
Mortgage
Loan Assignment Agreement dated as of June 12, 2001 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.25
|
Promissory
Note representing $121,357,226.22 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.26
|
Mortgage
Loan Assignment Agreement dated as of September 24, 2001 among NB
Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.27
|
Promissory
Note representing $55,963,732.07 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.28
|
Mortgage
Loan Assignment Agreement dated as of January 29, 2002 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.29
|
Promissory
Note representing $71,866,079.87 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.30
|
Mortgage
Loan Assignment Agreement dated as of June 20, 2002 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.31
|
Promissory
Note representing $64,221,362.98 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.32
|
Mortgage
Loan Assignment Agreement dated as of December 16, 2002 among NB
Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.33
|
Promissory
Note representing $52,054,168.88 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.34
|
Mortgage
Loan Assignment Agreement dated as of May 27, 2003 among NB Finance,
Ltd.,
NB Capital Corporation and National Bank of
Canada*
|
10.35
|
Promissory
Note representing $70,420,135.45 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.36
|
Mortgage
Loan Assignment Agreement dated as of October 21,2003 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.37
|
Promissory
Note representing $106,552,720.44 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.38
|
Mortgage
Loan Assignment Agreement dated as of April 28, 2004 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.39
|
Promissory
Note representing $76,053,456.93 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
10.40
|
Mortgage
Loan Assignment Agreement dated as of August 26, 2004 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada*
|
10.41
|
Promissory
Note representing $94,559,444.49 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation*
|
Mortgage
Loan Assignment Agreement dated as of February 24, 2005 among NB
Finance,
Ltd., NB Capital Corporation and National Bank of
Canada**
|
Promissory
Note representing $73,037,930.00 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation**
|
Mortgage
Loan Assignment Agreement dated as of August 29, 2005 among NB Finance,
Ltd., NB Capital Corporation and National Bank of
Canada**
|
Promissory
Note representing $97,736,747.47 executed by NB Finance, Ltd. in
favor of
NB Capital Corporation**
|
NB
Capital Code of Ethics**
|
Certification
of Chairman and President pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002**
|
31.2 |
Certification
of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley
Act of 2002**
|
Written
Statement of Chairman and President Pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350)**
|
Written
Statement of Chief Financial Officer Pursuant to Section 906 of
the
Sarbanes-Oxley Act of 2002 (18 U.S.C. Section
1350)**
|
*
|
As
previously filed.
|
** |
As
filed herewith.
|
F-1
|
|
F-2
|
|
F-3
|
|
F-4
|
|
F-5
|
|
F-6
to F-9
|
|
2005
|
2004
|
|||||
$
|
$
|
||||||
Assets
|
|||||||
Current
Assets
|
|||||||
Cash
and cash equivalents
|
59,900,966
|
58,327,311
|
|||||
Due
from an affiliated company
|
9,680,137
|
9,474,360
|
|||||
Promissory
notes - current portion
|
79,840,304
|
51,678,372
|
|||||
Prepaid
expenses
|
31,800
|
30,520
|
|||||
Accrued
interest on cash equivalents
|
18,691
|
25,499
|
|||||
Total
Current Assets
|
149,471,898
|
119,536,062
|
|||||
Promissory
notes
|
330,138,683
|
358,227,439
|
|||||
Total
assets
|
479,610,581
|
477,763,501
|
|||||
Liabilities
|
|||||||
Current
Liabilities
|
|||||||
Due
to the parent company
|
402,482
|
414,084
|
|||||
Accounts
payable
|
116,512
|
30,287
|
|||||
Total
liabilities
|
518,994
|
444,371
|
|||||
Stockholders’
equity
|
|||||||
Preferred
stock, $0.01 par value per share; 10,000,000 shares authorized,
300,000
Series A shares issued and paid
|
3,000
|
3,000
|
|||||
110
Senior preferred shares issued and paid
|
1
|
1
|
|||||
Common
stock, $0.01 par value per share;
1,000
shares authorized,
100
shares issued and paid
|
1
|
1
|
|||||
Additional
paid-in capital
|
476,761,014
|
476,761,014
|
|||||
Retained
earnings
|
2,327,571
|
555,114
|
|||||
Total
stockholders’ equity
|
479,091,587
|
477,319,130
|
|||||
Total
liabilities and stockholders’ equity
|
479,610,581
|
477,763,501
|
2005
|
2004
|
2003
|
||||||||
$
|
$
|
$
|
||||||||
Revenue
|
||||||||||
Interest
income
|
||||||||||
Short-term
investments
|
1,346,146
|
441,053
|
346,591
|
|||||||
Promissory
notes
|
33,995,506
|
35,879,238
|
37,529,935
|
|||||||
Bank
interest
|
918
|
2,000
|
18,840
|
|||||||
35,342,570
|
36,322,291
|
37,895,366
|
||||||||
Expenses
|
||||||||||
Legal
|
127,883
|
62,265
|
41,292
|
|||||||
Other
professional fees
|
255,641
|
202,707
|
223,523
|
|||||||
Servicing
fees
|
1,514,444
|
1,498,279
|
1,497,130
|
|||||||
Advisory
fees
|
100,000
|
100,000
|
30,000
|
|||||||
1,997,968
|
1,863,251
|
1,791,945
|
||||||||
Net
income
|
33,344,602
|
34,459,040
|
36,103,421
|
|||||||
Preferred
stock dividends
|
25,072,145
|
25,067,424
|
25,067,921
|
|||||||
Income
available to common stockholders
|
8,272,457
|
9,391,616
|
11,035,500
|
|||||||
Weighted
average number of common shares outstanding
|
100
|
100
|
100
|
|||||||
Earnings
per common share - basic and diluted
|
82,725
|
93,916
|
110,355
|
Series
A
|
Senior
|
Additional
|
|||||||||||||||||
Preferred
|
Preferred
|
Common
|
Paid-in
|
Retained
|
|||||||||||||||
Stock
|
Stock
|
Stock
|
Capital
|
Earnings
|
Total
|
||||||||||||||
$
|
$
|
$
|
$
|
$
|
$
|
||||||||||||||
Stockholders’
equity as of December 31, 2002
|
3,000
|
1
|
1
|
476,761,014
|
5,127,998
|
481,892,014
|
|||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
36,103,421
|
36,103,421
|
|||||||||||||
Dividends
on senior preferred stock and Series A preferred stock
|
—
|
—
|
—
|
—
|
(25,067,921
|
)
|
(25,067,921
|
)
|
|||||||||||
Dividend
on common stock
|
—
|
—
|
—
|
—
|
(14,500,000
|
)
|
(14,500,000
|
)
|
|||||||||||
Stockholders’
equity as of December 31, 2003
|
3,000
|
1
|
1
|
476,761,014
|
1,663,498
|
478,427,514
|
|||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
34,459,040
|
36,459,040
|
|||||||||||||
Dividends
on senior preferred stock and Series A preferred stock
|
—
|
—
|
—
|
—
|
(25,067,424
|
)
|
(25,067,424
|
)
|
|||||||||||
Dividend
on common stock
|
—
|
—
|
—
|
—
|
(10,500,000
|
)
|
(10,500,000
|
)
|
|||||||||||
Stockholders’
equity as of December 31, 2004
|
3,000
|
1
|
1
|
476,761,014
|
555,114
|
477,319,130
|
|||||||||||||
Net
income
|
—
|
—
|
—
|
—
|
33,344,602
|
33,344,602
|
|||||||||||||
Dividends
on senior preferred stock and Series A preferred
stock
|
—
|
—
|
—
|
—
|
(25,072,145
|
)
|
(25,072,145
|
)
|
|||||||||||
Dividend
on common stock
|
—
|
—
|
—
|
—
|
(6,500,000
|
)
|
(6,500,000
|
)
|
|||||||||||
Stockholders’
equity as of December 31, 2005
|
3,000
|
1
|
1
|
476,761,014
|
2,327,571
|
479,091,587
|
2005
|
2004
|
2003
|
||||||||
$
|
$
|
$
|
||||||||
Operating
activities
|
||||||||||
Net
income
|
33,344,602
|
34,459,040
|
36,103,421
|
|||||||
Adjustment
to reconcile net income to net cash provided by operating
activities
|
||||||||||
Prepaid
expenses
|
(1,280
|
)
|
(2,520
|
)
|
(1,333
|
)
|
||||
Due
from an affiliated company
|
(205,777
|
)
|
1,637,556
|
(4,134,609
|
)
|
|||||
Due
to the parent company
|
(11,602
|
)
|
(870
|
)
|
70,008
|
|||||
Accounts
payable
|
86,225
|
(11,422
|
)
|
(26,187
|
)
|
|||||
Accrued
interest on cash equivalents
|
6,808
|
(20,265
|
)
|
(4,934
|
)
|
|||||
Net
cash provided by operating activities
|
33,218,976
|
36,061,519
|
32,006,366
|
|||||||
Investing
activities
|
||||||||||
Investment
in promissory notes
|
(170,774,678
|
)
|
(170,612,901
|
)
|
(176,972,855
|
)
|
||||
Repayments
of promissory notes
|
170,701,502
|
209,040,546
|
198,485,678
|
|||||||
Net
cash provided by (used in) investing activities
|
(73,176
|
)
|
38,427,645
|
21,512,823
|
||||||
Financing
activities
|
||||||||||
Dividends
|
(31,572,145
|
)
|
(35,567,424
|
)
|
(39,567,921
|
)
|
||||
Net
cash used in financing activities
|
(31,572,145
|
)
|
(35,567,424
|
)
|
(39,567,921
|
)
|
||||
Cash
and cash equivalents, beginning of year
|
58,327,311
|
19,405,571
|
5,454,303
|
|||||||
Cash
and cash equivalents, end of year
|
59,900,966
|
58,327,311
|
19,405,571
|
1.
|
Incorporation
and nature of operations
|
2. |
Significant
accounting policies
|
2. |
Significant
accounting policies
(continued)
|
3. |
Promissory
notes
|
2005
|
2004
|
||||||
$
|
$
|
||||||
Promissory
notes, beginning of year
|
409,905,811
|
448,333,456
|
|||||
Acquisitions
|
170,774,678
|
170,612,901
|
|||||
Principal
repayments
|
(170,701,502
|
)
|
(209,040,546
|
)
|
|||
Promissory
notes, end of year
|
409,978,987
|
409,905,811
|
$
|
$
|
|||||||||
2006
|
79,840,304
|
2011
|
64,300,710
|
|||||||
2007
|
109,484,543
|
2012
|
37,244,565
|
|||||||
2008
|
24,645,507
|
2013
|
8,063,924
|
|||||||
2009
|
34,060,036
|
2014
|
4,142,782
|
|||||||
2010
|
39,607,180
|
2015
|
8,589,436
|
4. |
Transactions
with an affiliated company
|
5. |
Transactions
with the parent company
|
6. |
Stockholders’
equity
|
· |
100
shares are authorized, issued and
paid.
|
· |
300,000
shares authorized and issued as 8.35% Non-Cumulative Exchangeable
Preferred Stock, Series A, non-voting, ranked senior to the common
stock and junior to the Adjustable Rate Cumulative Senior Preferred
Shares, with a liquidation value of $1,000 per share, redeemable
at the
Company’s option on or after September 3, 2007, except upon the
occurrence of certain changes in tax laws in the United States
of America
and in Canada, on or after September 3,
2002.
|
· |
1,000
shares authorized and 110 shares issued as Adjustable Rate Cumulative
Senior Preferred Shares, non-voting, ranked senior to the common
stock and
to the 8.35% Non-Cumulative Exchangeable Preferred Stock, with
a
liquidation value of $3,000 per share, redeemable at the Company’s option
at any time and retractable at the holders’ option on December 30,
2007 and every ten-year anniversary
thereof.
|
7. |
Recent
pronouncements
|
consolidated financial statements |
Réal
Raymond
|
Pierre
Fitzgibbon
|
President
and
|
Senior
Vice-President
|
Chief
Executive Officer
|
Finance,
Technology and Corporate
Affairs
|
Deloitte.
|
Samson
Bélair/Deloitte & Touche
|
s.e.n.c.r.l.
|
|
1
Place Ville Marie
|
|
Suite
3000
|
|
Montreal
QC H3B 4T9
|
|
Canada
|
|
Tel:
514-393-5317
|
|
Fax:
514-390-4111
|
|
www.deloitte.ca
|
Note
|
2005
|
2004
|
||||||||
Interest
income and dividends
|
||||||||||
Loans
|
2,122
|
1,884
|
||||||||
Securities
|
739
|
588
|
||||||||
Deposits
with financial institutions
|
193
|
113
|
||||||||
3,054
|
2,585
|
|||||||||
Interest
expense
|
||||||||||
Deposits
|
1,113
|
800
|
||||||||
Subordinated
debentures
|
100
|
99
|
||||||||
Other
|
404
|
323
|
||||||||
1,617
|
1,222
|
|||||||||
Net
interest income
|
1,437
|
1,363
|
||||||||
Other
income
|
||||||||||
Financial
market fees
|
682
|
633
|
||||||||
Deposit
and payment service charges
|
201
|
200
|
||||||||
Trading
revenues
|
192
|
198
|
||||||||
Gains
on investment account securities, net
|
91
|
91
|
||||||||
Card
service revenues
|
63
|
49
|
||||||||
Lending
fees
|
247
|
258
|
||||||||
Acceptances,
letters of credit and guarantee
|
61
|
65
|
||||||||
Securitization
revenues
|
195
|
180
|
||||||||
Foreign
exchange revenues
|
76
|
72
|
||||||||
Trust
services and mutual funds
|
285
|
244
|
||||||||
Other
|
173
|
192
|
||||||||
2,266
|
2,182
|
|||||||||
Total
revenues
|
3,703
|
3,545
|
||||||||
Provision
for credit losses
|
6
|
33
|
86
|
|||||||
Operating
expenses
|
||||||||||
Salaries
and staff benefits
|
1,451
|
1,359
|
||||||||
Occupancy
|
184
|
200
|
||||||||
Computers
and equipment
|
356
|
334
|
||||||||
Communications
|
81
|
77
|
||||||||
Professional
fees
|
136
|
118
|
||||||||
Other
|
291
|
300
|
||||||||
2,499
|
2,388
|
|||||||||
Income
before income taxes and non-controlling interest
|
1,171
|
1,071
|
||||||||
Income
taxes
|
15
|
291
|
318
|
|||||||
880
|
753
|
|||||||||
Non-controlling
interest
|
25
|
28
|
||||||||
Net
income
|
855
|
725
|
||||||||
Dividends
on preferred shares
|
13
|
26
|
23
|
|||||||
Net
income available to common shareholders
|
829
|
702
|
||||||||
Average
number of common shares outstanding (thousands)
|
16
|
|||||||||
Basic
|
166,382
|
170,918
|
||||||||
Diluted
|
168,964
|
173,276
|
||||||||
Net
earnings per common share (dollars)
|
16
|
|||||||||
Basic
|
4.98
|
4.10
|
||||||||
Diluted
|
4.90
|
4.05
|
||||||||
Dividends
per common share (dollars)
|
13
|
1.72
|
1.42
|
Note
|
2005
|
2004
|
||||||||
ASSETS
|
||||||||||
Cash
|
227
|
481
|
||||||||
Deposits
with financial institutions
|
10,087
|
5,296
|
||||||||
Securities
|
||||||||||
Investment
account
|
4
|
6,869
|
7,446
|
|||||||
Trading
account
|
4
|
26,183
|
20,561
|
|||||||
33,052
|
28,007
|
|||||||||
Securities
purchased under reverse repurchase agreements
|
7,023
|
4,496
|
||||||||
Loans
|
5
and 6
|
|||||||||
Residential
mortgage
|
15,677
|
15,500
|
||||||||
Personal
and credit card
|
9,796
|
7,825
|
||||||||
Business
and government
|
22,096
|
18,751
|
||||||||
47,569
|
42,076
|
|||||||||
Allowance
for credit losses
|
(451
|
)
|
(578
|
)
|
||||||
47,118
|
41,498
|
|||||||||
Other
|
||||||||||
Customers’
liability under acceptances
|
3,242
|
3,076
|
||||||||
Fair
value of trading derivative financial instruments
|
18
|
2,390
|
2,735
|
|||||||
Premises
and equipment
|
7
|
355
|
267
|
|||||||
Goodwill
|
8
|
662
|
662
|
|||||||
Intangible
assets
|
8
|
178
|
180
|
|||||||
Other
assets
|
9
|
3,264
|
1,799
|
|||||||
10,091
|
8,719
|
|||||||||
107,598
|
88,497
|
|||||||||
LIABILITIES
AND SHAREHOLDERS’ EQUITY
|
||||||||||
Deposits
|
10
|
|||||||||
Personal
|
26,385
|
24,008
|
||||||||
Business
and government
|
29,636
|
23,966
|
||||||||
Deposit-taking
institutions
|
5,956
|
5,458
|
||||||||
61,977
|
53,432
|
|||||||||
Other
|
||||||||||
Acceptances
|
3,242
|
3,076
|
||||||||
Obligations
related to securities sold short
|
15,504
|
10,204
|
||||||||
Securities
sold under repurchase agreements
|
12,915
|
8,182
|
||||||||
Fair
value of trading derivative financial instruments
|
18
|
1,846
|
2,386
|
|||||||
Other
liabilities
|
9
|
5,928
|
5,235
|
|||||||
39,435
|
29,083
|
|||||||||
Subordinated
debentures
|
11
|
1,102
|
1,408
|
|||||||
Non-controlling
interest
|
11
|
487
|
370
|
|||||||
Shareholders’
equity
|
||||||||||
Preferred
shares
|
13
|
400
|
375
|
|||||||
Common
shares
|
13
|
1,565
|
1,545
|
|||||||
Contributed
surplus
|
13
|
7
|
||||||||
Unrealized
foreign currency translation adjustments
|
(26
|
)
|
(10
|
)
|
||||||
Retained
earnings
|
2,645
|
2,287
|
||||||||
4,597
|
4,204
|
|||||||||
107,598
|
88,497
|
Réal
Raymond
|
Pierre
Bourgie
|
President
and Chief Executive Officer
|
Director
|
Note
|
2005
|
2004
|
||||||||
Preferred
shares at beginning
|
375
|
375
|
||||||||
Issuance
of preferred shares, Series 16
|
200
|
—
|
||||||||
Redemption
of preferred shares, Series 13 for cancellation
|
(175
|
)
|
—
|
|||||||
Preferred
shares at end
|
13
|
400
|
375
|
|||||||
Common
shares at beginning
|
1,545
|
1,583
|
||||||||
Issuance
of common shares
|
||||||||||
Dividend
Reinvestment and Share Purchase Plan
|
12
|
12
|
||||||||
Stock
Option Plan
|
46
|
30
|
||||||||
Repurchase
of common shares for cancellation
|
(39
|
)
|
(80
|
)
|
||||||
Impact
of shares acquired or sold for trading purposes
|
1
|
—
|
||||||||
Common
shares at end
|
13
|
1,565
|
1,545
|
|||||||
Contributed
surplus at beginning
|
7
|
2
|
||||||||
Stock
option expense
|
14
|
6
|
5
|
|||||||
Contributed
surplus at end
|
13
|
7
|
||||||||
Unrealized
foreign currency translation adjustments at
beginning
|
(10
|
)
|
6
|
|||||||
Losses
on foreign exchange operations with a functional currency
|
||||||||||
other
than the Canadian dollar, net of income taxes
|
(16
|
)
|
(16
|
)
|
||||||
Unrealized
foreign currency translation adjustments at end
|
(26
|
)
|
(10
|
)
|
||||||
Retained
earnings at beginning
|
2,287
|
2,131
|
||||||||
Net
income
|
855
|
725
|
||||||||
Impact
of initial adoption of AcG-15
|
2
|
1
|
—
|
|||||||
Dividends
|
||||||||||
Preferred
shares
|
13
|
(26
|
)
|
(23
|
)
|
|||||
Common
shares
|
13
|
(286
|
)
|
(243
|
)
|
|||||
Premium
paid on common shares repurchased for cancellation
|
13
|
(185
|
)
|
(302
|
)
|
|||||
Share
issuance expenses and other, net of income taxes
|
(1
|
)
|
(1
|
)
|
||||||
Retained
earnings at end
|
2,645
|
2,287
|
||||||||
Shareholders’
equity
|
4,597
|
4,204
|
Note
|
2005
|
2004
|
||||||||
Cash
flows from operating activities
|
||||||||||
Net
income
|
855
|
725
|
||||||||
Adjustments
for:
|
||||||||||
Provision
for credit losses
|
33
|
86
|
||||||||
Amortization
of premises and equipment
|
63
|
52
|
||||||||
Future
income taxes
|
(31
|
)
|
50
|
|||||||
Translation
adjustment on foreign currency subordinated debentures
|
(11
|
)
|
(29
|
)
|
||||||
Gains
on sale of investment account securities, net
|
(91
|
)
|
(91
|
)
|
||||||
Gains
on asset securitizations and other transfers of receivables,
net
|
(125
|
)
|
(64
|
)
|
||||||
Stock
option expense
|
6
|
5
|
||||||||
Change
in interest payable
|
(73
|
)
|
58
|
|||||||
Change
in interest and dividends receivable
|
11
|
268
|
||||||||
Change
in income taxes payable
|
6
|
(161
|
)
|
|||||||
Change
in net fair value amounts on trading derivative financial
instruments
|
(195
|
)
|
(116
|
)
|
||||||
Change
in trading account securities
|
(5,622
|
)
|
(1,410
|
)
|
||||||
Excess
of pension plan contributions over expenses
|
—
|
(20
|
)
|
|||||||
Change
in other items
|
(430
|
)
|
929
|
|||||||
(5,604
|
)
|
282
|
||||||||
Cash
flows from financing activities
|
||||||||||
Change
in deposits
|
8,250
|
1,969
|
||||||||
Issuance
of subordinated debentures
|
350
|
—
|
||||||||
Redemption
of subordinated debentures
|
(350
|
)
|
(79
|
)
|
||||||
Issuance
of common shares
|
58
|
42
|
||||||||
Issuance
of preferred shares
|
200
|
—
|
||||||||
Repurchase
of common shares for cancellation
|
(224
|
)
|
(382
|
)
|
||||||
Redemption
of preferred shares for cancellation
|
(175
|
)
|
—
|
|||||||
Dividends
paid on common shares
|
(278
|
)
|
(179
|
)
|
||||||
Dividends
paid on preferred shares
|
(27
|
)
|
(23
|
)
|
||||||
Change
in obligations related to securities sold short
|
5,300
|
1,747
|
||||||||
Change
in securities sold under repurchase agreements
|
4,733
|
(492
|
)
|
|||||||
Change
in other items
|
(19
|
)
|
(16
|
)
|
||||||
17,818
|
2,587
|
|||||||||
Cash
flows from investing activities
|
||||||||||
Change
in deposits with financial institutions pledged as
collateral
|
(3,594
|
)
|
(123
|
)
|
||||||
Change
in loans
|
(8,016
|
)
|
(4,851
|
)
|
||||||
Proceeds
from securitization of assets and other transfers of
receivables
|
3,069
|
1,648
|
||||||||
Maturity
of securitized assets
|
(706
|
)
|
—
|
|||||||
Purchases
of investment account securities
|
(52,611
|
)
|
(15,479
|
)
|
||||||
Sales
of investment account securities
|
53,313
|
15,140
|
||||||||
Change
in securities purchased under reverse repurchase
agreements
|
(2,527
|
)
|
(541
|
)
|
||||||
Consolidation
of assets in accordance with AcG-15
|
2
|
(132
|
)
|
—
|
||||||
Net
acquisitions of premises and equipment
|
(67
|
)
|
(56
|
)
|
||||||
(11,271
|
)
|
(4,262
|
)
|
|||||||
Increase
(decrease) in cash and cash equivalents
|
943
|
(1,393
|
)
|
|||||||
Cash
and cash equivalents at beginning
|
5,333
|
6,726
|
||||||||
Cash
and cash equivalents at end
|
6,276
|
5,333
|
||||||||
Cash
and cash equivalents
|
||||||||||
Cash
|
227
|
481
|
||||||||
Deposits
with financial institutions
|
10,087
|
5,296
|
||||||||
Less:
amount pledged as collateral
|
(4,038
|
)
|
(444
|
)
|
||||||
6,276
|
5,333
|
|||||||||
Supplementary
information
|
||||||||||
Interest
paid
|
1,589
|
1,218
|
||||||||
Income
taxes paid
|
257
|
529
|
Notes
to the Consolidated Financial
Statements
|
Methods
|
Rates
|
||||||
Buildings
|
(a)
or (b
|
)
|
2%
to 14
|
%
|
|||
Equipment
and furniture
|
(a)
or (b
|
)
|
20%
to 50
|
%
|
|||
Leasehold
improvements
|
(a
|
)
|
(c
|
)
|
Guaranteed
|
Credit
card
|
Personal
|
|||||||||||||||||
mortgage
loans
|
receivables
|
loans
|
|||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
||||||||||||||
Weighted
average term (months)
|
27.5
|
27.1
|
—
|
—
|
13.1
|
13.3
|
|
||||||||||||
Payment
rate
|
—
|
—
|
31.6
|
%
|
31.2
|
%
|
—
|
—
|
|
||||||||||
Prepayment
rate
|
20.0
|
%
|
20.0
|
%
|
—
|
—
|
30.0
|
%
|
30.0
|
%
|
|||||||||
Excess
spread, net of credit losses
|
1.8
|
% |
1.3
|
%
|
10.4
|
%
|
10.3
|
%
|
1.3
|
%
|
1.8
|
%
|
|||||||
Expected
credit losses
|
—
|
—
|
3.5
|
%
|
3.4
|
%
|
1.7
|
%
|
1.2
|
%
|
|||||||||
Discount
rate
|
3.3
|
%
|
3.9
|
%
|
17.0
|
%
|
(1) |
21.0
|
%
|
17.0
|
%
|
(1) |
21.0
|
%
|
Securitization
revenues
|
Investment
account securities
|
Other
liabilities
|
|||||||||||||||||||||||
Gains
(losses)
|
Cash
deposits
|
||||||||||||||||||||||||
on
sale of assets
|
Retained
interests
|
at
a trust
|
Servicing
liability
|
||||||||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
||||||||||||||||||
Mortgage
loans
|
|||||||||||||||||||||||||
-Guaranteed
|
59
|
31
|
125
|
99
|
—
|
—
|
19
|
16
|
|||||||||||||||||
-Other(1)
|
—
|
—
|
—
|
—
|
20
|
20
|
—
|
—
|
|||||||||||||||||
Credit
card receivables
|
69
|
38
|
31
|
13
|
2
|
5
|
6
|
3
|
|||||||||||||||||
Personal
loans
|
(1
|
)
|
(2
|
)
|
2
|
7
|
16
|
26
|
2
|
4
|
|||||||||||||||
Total
|
127
|
67
|
158
|
119
|
38
|
51
|
27
|
23
|
2005
|
2004
|
||||||||||||||||||
Securitized
|
Impaired
|
Net
credit
|
Securitized
|
Impaired
|
Net
credit
|
||||||||||||||
assets
|
loans
|
losses
|
assets
|
loans
|
losses
|
||||||||||||||
Mortgage
loans
|
|||||||||||||||||||
-Guaranteed
|
4,395
|
(1)
|
—
|
—
|
3,520
|
(1)
|
—
|
—
|
|||||||||||
-Other
|
186
|
—
|
—
|
293
|
|
—
|
—
|
||||||||||||
Credit
card receivables
|
1,200
|
7
|
41
|
900
|
4
|
40
|
|||||||||||||
Consumer
loans(3)
|
—
|
—
|
—
|
—
|
—
|
1
|
|||||||||||||
Personal
loans
|
222
|
(2)
|
1
|
6
|
515
|
3
|
8
|
||||||||||||
Total
|
6,003
|
8
|
47
|
5,228
|
7
|
49
|
Guaranteed
|
Credit
card
|
Personal
|
|||||||||||||||||
mortgage
loans
|
receivables
|
loans
|
|||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
||||||||||||||
Proceeds
from new securitizations
|
1,845
|
1,520
|
795
|
—
|
—
|
—
|
|||||||||||||
Proceeds
collected and reinvested in revolving securitizations
|
—
|
—
|
3,092
|
3,273
|
268
|
377
|
|||||||||||||
Cash
flows from retained interests in securitizations
|
60
|
55
|
81
|
64
|
16
|
27
|
Guaranteed
|
Credit
card
|
Personal
|
|||||||||||||||||
Assumptions
|
mortgage
loans
|
receivables
|
loans
|
||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
||||||||||||||
Prepayment
rate
|
20.0
|
%
|
20.0
|
%
|
31.5
|
%
|
31.2
|
%
|
30.0
|
%
|
30.0
|
%
|
|||||||
Impact
on fair value of 10%
adverse
change
|
|
$(3.4
|
)
|
|
$(2.6
|
)
|
|
$(2.2
|
)
|
|
$(0.9
|
)
|
|
$(0.0
|
)
|
|
$(0.2
|
)
|
|
Impact
on fair value of 20%
adverse
change
|
|
$(6.7
|
)
|
|
$(5.2
|
)
|
|
$(4.1
|
)
|
|
$(1.7
|
)
|
|
$(0.1
|
)
|
|
$(0.4
|
)
|
|
Excess
spread, net of credit losses
|
1.6
|
%
|
1.5
|
%
|
10.4
|
%
|
10.3
|
%
|
1.3
|
%
|
1.8
|
%
|
|||||||
Impact
on fair value of 10%
adverse
change
|
|
$(12.5
|
)
|
|
$(9.9
|
)
|
|
$(3.1
|
)
|
|
$(1.3
|
)
|
|
$(0.2
|
)
|
|
$(1.3
|
)
|
|
Impact
on fair value of 20%
adverse
change
|
|
$(25.1
|
)
|
|
$(19.7
|
)
|
|
$(6.3
|
)
|
|
$(2.7
|
)
|
|
$(0.5
|
)
|
|
$(2.6
|
)
|
|
Discount
rate
|
3.8
|
%
|
4.2
|
%
|
17.0
|
%(1)
|
21.0
|
%
|
17.0
|
%(1)
|
21.0
|
%
|
|||||||
Impact
on fair value of 10%
adverse
change
|
|
$(0.5
|
)
|
|
$(0.4
|
)
|
|
$(0.1
|
)
|
|
$(0.1
|
)
|
|
$(0.3
|
)
|
|
$(0.6
|
)
|
|
Impact
on fair value of 20%
adverse
change
|
|
$(0.9
|
)
|
|
$(0.8
|
)
|
|
$(0.2
|
)
|
|
$(0.1
|
)
|
|
$(0.6
|
)
|
|
$(1.1
|
)
|
|
Servicing
|
0.3
|
%
|
0.3
|
%
|
2.0
|
%
|
2.0
|
%
|
1.0
|
%
|
1.0
|
%
|
|||||||
Impact
on fair value of 10%
adverse
change
|
|
$(1.9
|
)
|
|
$(1.6
|
)
|
|
$(0.6
|
)
|
|
$(0.3
|
)
|
|
$(0.2
|
)
|
|
$(0.4
|
)
|
|
Impact
on fair value of 20%
adverse
change
|
|
$(3.8
|
)
|
|
$(3.3
|
)
|
|
$(1.2
|
)
|
|
$(0.5
|
)
|
|
$(0.4
|
)
|
|
$(0.8
|
)
|
Under
|
1
to
|
5
to
|
Over
|
No
|
2005
|
2004
|
||||||||||||||||
1
year
|
5
years
|
10
years
|
10
years
|
maturity
|
Total
|
Total
|
||||||||||||||||
Investment
account
|
||||||||||||||||||||||
Securities
issued or guaranteed by
|
||||||||||||||||||||||
Canada
|
||||||||||||||||||||||
Unamortized
cost
|
455
|
1,627
|
102
|
23
|
75
|
2,282
|
2,393
|
|||||||||||||||
Provinces
|
||||||||||||||||||||||
Unamortized
cost
|
98
|
48
|
172
|
68
|
—
|
386
|
150
|
|||||||||||||||
Municipalities
or school boards
|
||||||||||||||||||||||
Unamortized
cost
|
—
|
—
|
34
|
—
|
—
|
34
|
2
|
|||||||||||||||
U.S.
Treasury and other U.S. agencies
|
||||||||||||||||||||||
Unamortized
cost
|
38
|
969
|
—
|
—
|
—
|
1,007
|
263
|
|||||||||||||||
Other
debt securities
|
||||||||||||||||||||||
Unamortized
cost
|
544
|
599
|
385
|
111
|
209
|
1,848
|
3,491
|
|||||||||||||||
Equity
securities
|
||||||||||||||||||||||
Cost
|
66
|
190
|
16
|
11
|
1,029
|
1,312
|
1,147
|
|||||||||||||||
Total
carrying value
|
1,201
|
3,433
|
709
|
213
|
1,313
|
6,869
|
7,446
|
|||||||||||||||
Trading
account
|
||||||||||||||||||||||
Securities
issued or guaranteed by
|
||||||||||||||||||||||
Canada
|
5,058
|
1,962
|
660
|
340
|
—
|
8,020
|
8,231
|
|||||||||||||||
Provinces
|
1,583
|
1,642
|
644
|
1,097
|
—
|
4,966
|
3,574
|
|||||||||||||||
Municipalities
or school boards
|
86
|
216
|
125
|
43
|
—
|
470
|
434
|
|||||||||||||||
U.S.
Treasury and other U.S. agencies
|
—
|
—
|
—
|
—
|
—
|
—
|
2,004
|
|||||||||||||||
Other
debt securities
|
1,087
|
3,230
|
897
|
827
|
—
|
6,041
|
2,776
|
|||||||||||||||
Equity
securities
|
3
|
15
|
1
|
—
|
6,667
|
6,686
|
3,542
|
|||||||||||||||
7,817
|
7,065
|
2,327
|
2,307
|
6,667
|
26,183
|
20,561
|
||||||||||||||||
Total
carrying value of securities
|
33,052
|
28,007
|
2005 | 2004 | ||||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Carrying
|
unrealized
|
unrealized
|
Fair
|
Carrying
|
unrealized
|
unrealized
|
Fair
|
||||||||||||||||||
Value
|
gains
|
losses
|
value
|
Value
|
gains
|
losses
|
value
|
||||||||||||||||||
Investment
account
|
|||||||||||||||||||||||||
Securities
issued or guaranteed by
|
|||||||||||||||||||||||||
Canada
|
2,282
|
26
|
(4
|
)
|
2,304
|
2,393
|
42
|
—
|
2,435
|
||||||||||||||||
Provinces
|
386
|
8
|
(3
|
)
|
391
|
150
|
6
|
—
|
156
|
||||||||||||||||
Municipalities
or school boards
|
34
|
—
|
—
|
34
|
2
|
—
|
—
|
2
|
|||||||||||||||||
U.S.
Treasury and other
|
|||||||||||||||||||||||||
U.S.
agencies
|
1,007
|
—
|
(14
|
)
|
993
|
263
|
2
|
—
|
265
|
||||||||||||||||
Other
debt securities
|
1,848
|
6
|
(11
|
)
|
1,843
|
3,491
|
24
|
(6
|
)
|
3,509
|
|||||||||||||||
Equity
securities
|
1,312
|
109
|
(43
|
)
|
1,378
|
1,147
|
83
|
(27
|
)
|
1,203
|
|||||||||||||||
Total
investment account
|
6,869
|
149
|
(75
|
)
|
6,943
|
7,446
|
157
|
(33
|
)
|
7,570
|
Term
to maturity
|
Impaired
loans
|
||||||||||||||||||||||||
Less
than
|
2-5
|
More
than
|
Total
gross
|
Specific
|
Net
|
||||||||||||||||||||
1
year
|
1
year
|
years
|
5
years
|
amount
|
Gross
|
allowances
|
balance
|
||||||||||||||||||
October
31, 2005
|
|||||||||||||||||||||||||
Residential
mortgage
|
9,803
|
1,904
|
3,814
|
156
|
15,677
|
10
|
2
|
8
|
|||||||||||||||||
Personal
and credit card
|
8,782
|
534
|
419
|
61
|
9,796
|
35
|
18
|
17
|
|||||||||||||||||
Business
and government
|
13,454
|
642
|
1,475
|
6,525
|
22,096
|
215
|
123
|
92
|
|||||||||||||||||
|
32
,039
|
3,080
|
5,708
|
6,742
|
47,569
|
260
|
143
|
117
|
|||||||||||||||||
General
allowance(1)
|
(308
|
)
|
|||||||||||||||||||||||
Impaired
loans, net of specific and general allowances
|
(191
|
)
|
|||||||||||||||||||||||
October
31, 2004
|
|||||||||||||||||||||||||
Residential
mortgage
|
8,959
|
2,370
|
3,907
|
264
|
15,500
|
4
|
2
|
2
|
|||||||||||||||||
Personal
and credit card
|
6,818
|
517
|
431
|
59
|
7,825
|
31
|
17
|
14
|
|||||||||||||||||
Business
and government
|
12,476
|
660
|
1,137
|
4,478
|
18,751
|
353
|
209
|
144
|
|||||||||||||||||
28,253
|
3,547
|
5,475
|
4,801
|
42,076
|
388
|
228
|
160
|
||||||||||||||||||
General
allowance(1)
|
(350
|
)
|
|||||||||||||||||||||||
Impaired
loans, net of specific and general allowances
|
(190
|
)
|
Allocated
|
Unallocated
|
Country
|
||||||||||||||
Specific
|
general
|
general
|
risk
|
2005
|
||||||||||||
allowances
|
allowance
|
allowance
|
allowance
|
Total
|
||||||||||||
Allowances
at beginning
|
228
|
272
|
78
|
—
|
578
|
|||||||||||
Provision
for credit losses
|
75
|
(31
|
)
|
(11
|
)
|
—
|
33
|
|||||||||
Write-offs
|
(215
|
)
|
—
|
—
|
—
|
(215
|
)
|
|||||||||
Recoveries
|
55
|
—
|
—
|
—
|
55
|
|||||||||||
Allowances
at end
|
143
|
241
|
67
|
—
|
451
|
Allocated
|
|
Unallocated
|
|
Country
|
|
|
|
|
|
|||||||
|
|
Specific
|
|
general
|
|
general
|
|
risk
|
|
2004
|
|
|||||
|
|
allowances
|
|
allowance
|
|
allowance
|
|
allowance
|
|
Total
|
|
|||||
|
|
|
|
|
|
|
|
|
|
|
||||||
Allowances
at beginning
|
206
|
300
|
105
|
19
|
630
|
|||||||||||
Provision
for credit losses
|
141
|
(28
|
)
|
(27
|
)
|
—
|
86
|
|||||||||
Write-offs
|
(178
|
)
|
—
|
—
|
(19
|
)
|
(197
|
)
|
||||||||
Recoveries
|
59
|
—
|
—
|
—
|
59
|
|||||||||||
Allowances
at end
|
228
|
272
|
78
|
—
|
578
|
2005
|
2004
|
||||||||||||
Net
|
Net
|
||||||||||||
Accumulated
|
carrying
|
carrying
|
|||||||||||
Cost
|
amortization
|
value
|
value
|
||||||||||
Land
|
18
|
—
|
18
|
8
|
|||||||||
Buildings
|
189
|
90
|
99
|
35
|
|||||||||
Equipment
and furniture
|
565
|
433
|
132
|
123
|
|||||||||
Leasehold
improvements
|
348
|
242
|
106
|
101
|
|||||||||
1,120
|
765
|
355
|
267
|
||||||||||
Amortization
for the year recorded in the Consolidated Statement of
Income
|
63
|
52
|
Personal
and
|
Wealth
|
Financial
|
|||||||||||
Commercial
|
Management
|
Markets
|
Total
|
||||||||||
Balance
as at October 31, 2003
|
61
|
407
|
192
|
660
|
|||||||||
Acquisitions
|
—
|
1
|
—
|
1
|
|||||||||
Other
|
(12
|
)
|
13
|
—
|
1
|
||||||||
Balance
as at October 31, 2004
|
49
|
421
|
192
|
662
|
|||||||||
Acquisitions
|
—
|
—
|
—
|
—
|
|||||||||
Other
|
—
|
—
|
—
|
—
|
|||||||||
Balance
as at October 31, 2005
|
49
|
421
|
192
|
662
|
2005
|
2004
|
||||||||||||
Net
|
Net
|
||||||||||||
Accumulated
|
carrying
|
carrying
|
|||||||||||
Cost
|
amortization
|
value
|
value
|
||||||||||
Trademarks(1)
|
11
|
—
|
11
|
11
|
|||||||||
Management
contracts(1)
|
160
|
—
|
160
|
160
|
|||||||||
Other
|
16
|
9
|
7
|
9
|
|||||||||
Total
|
187
|
9
|
178
|
180
|
Other
assets
|
Other
liabilities
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Interest
and dividends receivable (payable)
|
322
|
333
|
(627
|
)
|
(692
|
)
|
|||||||
Income
taxes payable
|
—
|
—
|
(135
|
)
|
(129
|
)
|
|||||||
Prepaid
expenses and deferred amounts
|
386
|
378
|
—
|
—
|
|||||||||
Future
income tax assets (liabilities) (Note
15)
|
137
|
100
|
(40
|
)
|
(31
|
)
|
|||||||
Trade
and other payables
|
—
|
—
|
(1,724
|
)
|
(1,946
|
)
|
|||||||
Brokers’
client accounts
|
1,589
|
73
|
(1,562
|
)
|
(371
|
)
|
|||||||
Investments
in companies subject to significant influence
|
116
|
119
|
—
|
—
|
|||||||||
Accrued
benefit asset (liability) (Note
12)
|
353
|
358
|
(105
|
)
|
(98
|
)
|
|||||||
Insurance-related
obligations
|
—
|
—
|
(82
|
)
|
(92
|
)
|
|||||||
Subsidiaries’
debts to third parties
|
—
|
—
|
(768
|
)
|
(745
|
)
|
|||||||
Accounts
payable and deferred income
|
—
|
—
|
(301
|
)
|
(344
|
)
|
|||||||
Other
|
361
|
438
|
(584
|
)
|
(787
|
)
|
|||||||
3,264
|
1,799
|
(5,928
|
)
|
(5,235
|
)
|
Payable
|
Payable
|
|||||||||||||||
Payable
|
after
|
on
a fixed
|
2005
|
2004
|
||||||||||||
on
demand
|
notice
|
date
|
Total
|
Total
|
||||||||||||
Personal
|
2,258
|
9,600
|
14,527
|
26,385
|
24,008
|
|||||||||||
Business
and government
|
8,831
|
5,593
|
15,212
|
29,636
|
23,966
|
|||||||||||
Deposit-taking
institutions
|
1,625
|
44
|
4,287
|
5,956
|
5,458
|
|||||||||||
12,714
|
15,237
|
34,026
|
61,977
|
53,432
|
Denominated
in
|
|||||||||||||||||||
Maturity
date
|
Interest
rate
|
Characteristics
|
foreign
currency
|
2005
|
2004
|
||||||||||||||
November
|
2009
|
7.75%
|
|
Convertible
into deposit notes at the Bank’s option
|
US
250
|
—
|
305
|
||||||||||||
June
|
2010
|
6.90%(1)
|
)
|
Redeemable
since June 7, 2005
|
—
|
350
|
|||||||||||||
October
|
2011
|
7.50%(2)
|
)
|
Redeemable
since October 17, 2001
|
150
|
150
|
|||||||||||||
October
|
2012
|
6.25%(3)
|
)
|
Not
redeemable prior to October 31, 2007
|
300
|
300
|
|||||||||||||
April
|
2014
|
5.70%(4)
|
)
|
Redeemable
since April 16, 2004
|
250
|
250
|
|||||||||||||
December
|
2019
|
4.926%(5)
|
)
|
Not
redeemable prior to December 22, 2014
|
350
|
—
|
|||||||||||||
February
|
2087
|
Floating(6)
|
)
|
Redeemable
at the Bank’s option since February 28, 1993
|
US
44
|
52
|
53
|
||||||||||||
Total
|
1,102
|
1,408
|
(1)
|
Bearing
interest at a rate of 6.90% until June 7, 2005, and thereafter at
an
annual rate equal
|
to
the 90-day acceptance rate plus
1%.
|
(2)
|
Bearing
interest at a rate of 7.50% until October 17, 2006, and thereafter
at an
annual rate equal
|
to
the 90-day acceptance rate plus
1%.
|
(3)
|
Bearing
interest at a rate of 6.25% until October 31, 2007, and thereafter
at an
annual rate equal
|
to
the 90-day acceptance rate plus
1%
|
(4)
|
Bearing
interest at a rate of 5.70% until April 16, 2009, and thereafter
at an
annual rate equal
|
to
the 90-day acceptance rate plus
1%.
|
(5)
|
Bearing
interest at a rate of 4.926% until December 22, 2014, and thereafter
at an
annual rate equal
|
to
the 90-day acceptance rate plus
1%.
|
(6)
|
Bearing
interest at an annual rate of 1/8% above
LIBOR.
|
2006
|
—
|
|||
2007
|
—
|
|||
2008
|
—
|
|||
2009
|
—
|
|||
2010
|
—
|
|||
2011
to 2015
|
700
|
|||
2016
and thereafter
|
402
|
|||
1,102
|
||||
Denominated
in
|
||||||||||
foreign
currency
|
2005
|
2004
|
||||||||
300,000
preferred shares, Series A, exchangeable, non-cumulative dividends,
issued
by NB Capital Corporation (1)
|
US
300
|
355
|
365
|
|||||||
Mutual
funds consolidated in accordance with AcG-15
|
124
|
—
|
||||||||
Other
|
8
|
5
|
||||||||
Total
|
487
|
370
|
(1) |
Annual
dividend of 8.35% payable quarterly on March 31, June 30, September
30 and
December 31. These preferred shares are non-voting shares, subordinated
to
common shares. They are redeemable at the issuer’s option as of September
3, 2007. The preferred shares, whose liquidation price is US $1,000
per
share, are traded on the New York Stock Exchange in the form of
depositary
shares representing 1/40 of each share. Each preferred share shall
automatically be exchanged for a new preferred share of the Bank
if one of
the following events occurs: i) the Bank defaults on the dividend
payment
for its first preferred shares; ii) the Bank’s Tier 1 capital ratio is
less than 4% or the total capital ratio is less than 8%; or iii)
at the
request of the Superintendent, in accordance with Section 485(3)
of the
Bank Act.
|
Date
of most recent
|
Date
of compulsory
|
||||||
actuarial
valuation
|
actuarial
valuation
|
||||||
Employee
pension plan
|
December
31, 2004
|
December
31, 2007
|
|||||
Pension
plan for designated employees
|
December
31, 2004
|
December
31, 2007
|
|||||
Post-Retirement
Allowance Program
|
December
31, 2004
|
December
31, 2006
|
Pension
benefit plans
|
Other
benefit plans
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Accrued
benefit obligation
|
|||||||||||||
Balance
at beginning
|
1,480
|
1,305
|
116
|
104
|
|||||||||
Current
service cost
|
37
|
31
|
4
|
4
|
|||||||||
Interest
cost
|
95
|
89
|
8
|
7
|
|||||||||
Employee
contributions
|
16
|
15
|
—
|
—
|
|||||||||
Benefits
paid
|
(64
|
)
|
(56
|
)
|
(5
|
)
|
(5
|
)
|
|||||
Plan
amendments
|
24
|
—
|
—
|
—
|
|||||||||
Actuarial
losses
|
143
|
96
|
13
|
6
|
|||||||||
Balance
at end
|
1,731
|
1,480
|
136
|
116
|
|||||||||
Plan
assets
|
|||||||||||||
Fair
value at beginning
|
1,478
|
1,366
|
—
|
—
|
|||||||||
Actual
return on plan assets
|
162
|
104
|
—
|
—
|
|||||||||
Bank
contributions
|
46
|
49
|
—
|
—
|
|||||||||
Employee
contributions
|
16
|
15
|
—
|
—
|
|||||||||
Benefits
paid
|
(64
|
)
|
(56
|
)
|
—
|
—
|
|||||||
Fair
value at end
|
1,638
|
1,478
|
—
|
—
|
|||||||||
Funded
status - plan deficit
|
(93
|
)
|
(3
|
)
|
(136
|
)
|
(116
|
)
|
|||||
Unamortized
net actuarial losses
|
412
|
346
|
31
|
18
|
|||||||||
Unamortized
past service costs
|
34
|
15
|
—
|
—
|
|||||||||
Accrued
benefit asset (liability) at end
|
353
|
358
|
(105
|
)
|
(98
|
)
|
Pension
benefit plans
|
Other
benefit plans
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Accrued
benefit asset included in “Other assets”
|
353
|
358
|
—
|
—
|
|||||||||
Accrued
benefit liability included in “Other liabilities”
|
—
|
—
|
(105
|
)
|
(98
|
)
|
|||||||
Net
amount recorded as at October 31
|
353
|
358
|
(105
|
)
|
(98
|
)
|
2005
|
2004
|
||||||
Fair
value of plan assets
|
1,541
|
1,390
|
|||||
Accrued
benefit obligation
|
1,664
|
1,424
|
|||||
Funded
status - plan deficit
|
(123
|
)
|
(34
|
)
|
2005
%
|
2004
%
|
||||||
Asset
category
|
|||||||
Money
market
|
7
|
5
|
|||||
Bonds
|
27
|
28
|
|||||
Equities
|
54
|
56
|
|||||
Other
|
12
|
11
|
|||||
100
|
100
|
Pension
benefit plans
|
Other
benefit plans
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
Current
service cost
|
37
|
31
|
4
|
4
|
|||||||||
Interest
cost
|
95
|
89
|
8
|
7
|
|||||||||
Actual
return on plan assets
|
(162
|
)
|
(104
|
)
|
—
|
—
|
|||||||
Actuarial
losses on obligation
|
143
|
96
|
13
|
6
|
|||||||||
Plan
amendments
|
24
|
—
|
—
|
—
|
|||||||||
Curtailment
and settlement loss
|
—
|
2
|
—
|
—
|
|||||||||
Expense
before adjustments to recognize the long-term nature of employee
future
benefits
|
137
|
114
|
25
|
17
|
|||||||||
Difference
between expected return and actual return on plan assets for
year
|
59
|
5
|
—
|
—
|
|||||||||
Difference
between actuarial gains recognized for year and actual actuarial
gains on
accrued benefit obligation for year
|
(125
|
)
|
(83
|
)
|
(12
|
)
|
(6
|
)
|
|||||
Difference
between amortization of past service costs for year and actual plan
amendments for year
|
(20
|
)
|
2
|
—
|
—
|
||||||||
Defined
benefit expense
|
51
|
38
|
13
|
11
|
Pension
benefit plans
|
Other
benefit plans
|
||||||||||||
2005
|
2004
|
2005
|
2004
|
||||||||||
% | % | % | % | ||||||||||
Accrued
benefit obligation as of October 31
|
|||||||||||||
Discount
rate
|
5.50
|
6.25
|
5.75
|
6.50
|
|||||||||
Rate
of compensation increase
|
3.50
|
4.00
|
3.50
|
4.00
|
|||||||||
Defined
benefit expense for years ended October 31
|
|||||||||||||
Discount
rate
|
6.25
|
6.75
|
6.50
|
6.75
|
|||||||||
Expected
long-term rate of return on plan assets
|
7.25
|
7.50
|
—
|
—
|
|||||||||
Rate
of compensation increase
|
4.00
|
4.00
|
4.00
|
4.00
|
Pension
benefit plans
|
Change
in obligation
|
Change
in expense
|
|||||
Impact
of a 0.25% change in the assumption regarding the discount
rate
|
62
|
7
|
|||||
Impact
of a 0.25% change in the assumption regarding the expected long-term
rate
of return on plan assets
|
—
|
4
|
|||||
Impact
of a 0.25% change in the assumption regarding the rate of compensation
increase
|
13
|
3
|
Other
benefit plans
|
Change
in obligation
|
Change
in expense
|
|||||
Impact
of a 0.25% change in the assumption regarding the discount
rate
|
5
|
1
|
|||||
Impact
of a 0.25% change in the assumption regarding the rate of compensation
increase
|
—
|
—
|
|||||
Impact
of a 1.00% increase in the expected healthcare cost trend
rate
|
16
|
3
|
|||||
Impact
of a 1.00% decrease in the expected healthcare cost trend
rate
|
(14
|
)
|
(2
|
)
|
2005
|
2004
|
||||||
Bank
pension benefit plan contributions
|
46
|
49
|
|||||
Benefits
paid under other benefit plans
|
5
|
5
|
|
|
2005
|
|||||||||||
Shares
outstanding and dividends declared
|
Number
of
shares
|
Shares $ |
$
|
Dividends per
share |
|||||||||
First
preferred shares
|
|||||||||||||
Series
13
|
—
|
—
|
8
|
1.2000
|
|||||||||
Series
15
|
8,000,000
|
200
|
12
|
1.4625
|
|||||||||
Series
16
|
8,000,000
|
200
|
6
|
0.8089
|
|||||||||
Preferred
shares and dividends
|
16,000,000
|
400
|
26
|
||||||||||
Common
shares at beginning
|
167,430,253
|
1,545
|
|||||||||||
Issued
pursuant to:
|
|||||||||||||
Dividend
Reinvestment and Share Purchase Plan
|
239,374
|
12
|
|||||||||||
Stock
Option Plan
|
1,773,463
|
46
|
|||||||||||
Repurchase
of common shares
|
(4,178,900
|
)
|
(39
|
)
|
|||||||||
Impact
of shares purchased or sold for trading
|
70,712
|
1
|
|||||||||||
Common
shares at end and dividends
|
165,334,902
|
1,565
|
286
|
1.7200
|
|||||||||
Total
dividends
|
|
312
|
|
|
||||||||||||
|
|
2004
|
|||||||||||
Shares
outstanding and dividends declared
|
Number
of
shares
|
Shares $ |
$
|
Dividends per
share |
|||||||||
First
preferred shares
|
|||||||||||||
Series
13
|
7,000,000
|
175
|
11
|
1.6000
|
|||||||||
Series
15
|
8,000,000
|
200
|
12
|
1.4625
|
|||||||||
Preferred
shares and dividends
|
15,000,000
|
375
|
23
|
||||||||||
Common
shares at beginning
|
174,619,903
|
1,583
|
|||||||||||
Issued
pursuant to:
|
|||||||||||||
Dividend
Reinvestment and Share Purchase Plan
|
286,745
|
12
|
|||||||||||
Stock
Option Plan
|
1,223,605
|
30
|
|||||||||||
Repurchase
of common shares
|
(8,700,000
|
)
|
(80
|
)
|
|||||||||
Common
shares at end and dividends
|
167,430,253
|
1,545
|
243
|
1.4200
|
|||||||||
Total
dividends
|
266
|
2005
|
2004
|
||||||||||||
Weighted
|
Weighted
|
||||||||||||
average
|
average
|
||||||||||||
Number
|
exercise
|
Number
|
exercise
|
||||||||||
of
SARs
|
price
|
of
SARs
|
price
|
||||||||||
SAR
Plan
|
|||||||||||||
Outstanding
at beginning
|
715,680
|
|
$18.59
|
1,269,640
|
|
$17.71
|
|||||||
Awarded
|
9,800
|
|
$48.20
|
16,000
|
|
$41.00
|
|||||||
Exercised
|
(340,320
|
)
|
|
$17.99
|
(566,310
|
)
|
|
$17.19
|
|||||
Cancelled
|
(6,850
|
)
|
|
$21.73
|
(3,650
|
)
|
|
$27.34
|
|||||
Outstanding
at end
|
378,310
|
|
$19.84
|
715,680
|
|
$18.59
|
|||||||
Exercisable
at end
|
340,348
|
|
$17.80
|
668,649
|
|
$17.58
|
SARs
|
SARs
|
|||||||||
Exercise
price
|
outstanding
|
exercisable
|
Expiry
date
|
|||||||
$13.50
|
26,000
|
26,000
|
December
2006
|
|||||||
$24.50
|
600
|
600
|
December
2007
|
|||||||
$17.35
|
292,010
|
292,010
|
December
2009
|
|||||||
$24.90
|
10,350
|
10,350
|
December
2010
|
|||||||
$28.01
|
10,450
|
4,663
|
December
2011
|
|||||||
$30.95
|
14,000
|
3,625
|
December
2012
|
|||||||
$41.00
|
15,100
|
3,100
|
December
2013
|
|||||||
$48.20
|
9,800
|
—
|
December
2014
|
|||||||
Total
|
378,310
|
340,348
|
|
2005
|
2004
|
||||||||||||
Weighted
|
Weighted
|
||||||||||||
average
|
average
|
||||||||||||
Number
|
exercise
|
Number
|
exercise
|
||||||||||
of
options
|
price
|
of
options
|
price
|
||||||||||
Stock
Option Plan
|
|||||||||||||
Outstanding
at beginning
|
6,180,960
|
|
$30.20
|
6,134,765
|
|
$26.40
|
|||||||
Awarded
|
1,468,260
|
|
$48.20
|
1,376,900
|
|
$41.00
|
|||||||
Exercised
|
(1,760,263
|
)
|
|
$25.69
|
(1,240,055
|
)
|
|
$23.39
|
|||||
Cancelled
|
(274,987
|
)
|
|
$41.59
|
(90,650
|
)
|
|
$30.04
|
|||||
Outstanding
at end
|
5,613,970
|
|
$35.76
|
6,180,960
|
|
$30.20
|
|||||||
Exercisable
at end
|
2,192,403
|
|
$28.90
|
2,826,403
|
|
$25.72
|
Options
|
Options
|
|
||||||||
Exercise
price
|
outstanding
|
exercisable
|
Expiry
date
|
|||||||
$11.00
|
3,300
|
3,300
|
December
2005
|
|||||||
$13.50
|
23,775
|
23,775
|
December
2006
|
|||||||
$25.20
|
166,000
|
166,000
|
December
2007
|
|||||||
$25.20
|
236,500
|
236,500
|
December
2008
|
|||||||
$24.90
|
427,695
|
427,695
|
December
2010
|
|||||||
$28.01
|
1,024,740
|
602,136
|
December
2011
|
|||||||
$30.95
|
1,162,013
|
468,676
|
December
2012
|
|||||||
$41.00
|
1,238,037
|
264,321
|
December
2013
|
|||||||
$48.20
|
1,331,910
|
—
|
December
2014
|
|||||||
Total
|
5,613,970
|
2,192,403
|
|
2005
|
2004
|
||||||
Consolidated
Statement of Income
|
|||||||
Income
taxes
|
291
|
318
|
|||||
Consolidated
Statement of Changes in Shareholders’ Equity
|
|||||||
Income
taxes related to
|
|||||||
Share
issuance and other expenses
|
(2
|
)
|
—
|
||||
Dividends
on preferred shares, Series 13, 15 and 16
|
—
|
1
|
|||||
Unrealized
foreign currency translation adjustments
|
13
|
31
|
|||||
11
|
32
|
||||||
302
|
350
|
||||||
Income
taxes were as follows:
|
|||||||
Current
income taxes
|
333
|
300
|
|||||
Future
income taxes relating to the inception and reversal of temporary
differences
|
(31
|
)
|
50
|
||||
Income
taxes
|
302
|
350
|
2005
|
2004
|
||||||
Future
income tax assets
|
|||||||
Allowance
for credit losses and other liabilities
|
313
|
294
|
|||||
Accrued
benefit liability - Other benefit plans
|
34
|
30
|
|||||
347
|
324
|
||||||
Future
income tax liabilities
|
|||||||
Premises
and equipment
|
(20
|
)
|
(20
|
)
|
|||
Securitization
|
(42
|
)
|
(30
|
)
|
|||
Accrued
benefit asset - Pension benefit plans
|
(111
|
)
|
(108
|
)
|
|||
Other
|
(77
|
)
|
(97
|
)
|
|||
(250
|
)
|
(255
|
)
|
||||
Net
balance of future income tax assets
|
97
|
69
|
|||||
Future
income tax assets
|
137
|
100
|
|||||
Future
income tax liabilities
|
(40
|
)
|
(31
|
)
|
|||
97
|
69
|
2005
|
2004
|
||||||||||||
$
|
%
|
$
|
%
|
||||||||||
Income
before income taxes and non-controlling interest
|
1,171
|
100.0
|
1,071
|
100.0
|
|||||||||
Income
taxes at Canadian statutory income tax rate
|
392
|
33.5
|
364
|
34.0
|
|||||||||
Reduction
in income tax rate due to:
|
|||||||||||||
Tax-exempt
income from securities, mainly dividends from Canadian
corporations
|
(58
|
)
|
(4.9
|
)
|
(40
|
)
|
(3.7
|
)
|
|||||
Rates
applicable to subsidiaries abroad
|
(41
|
)
|
(3.5
|
)
|
(32
|
)
|
(3.0
|
)
|
|||||
Other
items
|
(2
|
)
|
(0.2
|
)
|
26
|
2.4
|
|||||||
(101
|
)
|
(8.6
|
)
|
(46
|
)
|
(4.3
|
)
|
||||||
Income
taxes and effective income tax rate
|
291
|
24.9
|
318
|
29.7
|
2005
|
2004
|
||||||
Net
income
|
855
|
725
|
|||||
Dividends
on preferred shares
|
(26
|
)
|
(23
|
)
|
|||
Net
income available to common shareholders - basic and
diluted
|
829
|
702
|
|||||
Average
number of common shares outstanding (thousands)
|
|||||||
Average
basic number of common shares outstanding
|
166,382
|
170,918
|
|||||
Adjustment
to number of common shares
|
|||||||
Stock
options
|
2,582
|
2,358
|
|||||
Average
diluted number of common shares outstanding
|
168,964
|
173,276
|
|||||
Earnings
per share - basic
|
$
|
4.98
|
$
|
4.10
|
|||
Earnings
per share - diluted
|
$
|
4.90
|
$
|
4.05
|
2005
|
2004
|
||||||
Letters
of guarantee
|
1,313
|
1,225
|
|||||
Backstop
liquidity facilities
|
1,519
|
1,378
|
|||||
Derivatives
|
1,850
|
385
|
|||||
Securities
lending
|
1,023
|
761
|
|||||
Other
indemnification agreements
|
226
|
230
|
|||||
Other
guarantee
|
23
|
22
|
|||||
Total
|
5,954
|
4,001
|
Service
|
Equipment
|
||||||||||||
Premises
|
contracts
|
and
furniture
|
Total
|
||||||||||
2006
|
102
|
189
|
7
|
298
|
|||||||||
2007
|
94 |
184
|
7
|
285
|
|||||||||
2008
|
87
|
172
|
4
|
263
|
|||||||||
2009
|
81
|
163
|
2
|
246
|
|||||||||
2010
|
76
|
163
|
1
|
240
|
|||||||||
2011
and thereafter
|
410
|
230
|
—
|
640
|
|||||||||
850
|
1,101
|
21
|
1,972
|
As
at October 31
|
2005
|
2004
|
|||||
Assets
pledged to:
|
|||||||
-
Bank of Canada
|
25
|
25
|
|||||
-
Direct clearing organizations
|
2,480
|
2,812
|
|||||
Assets
pledged in relation to:
|
|||||||
-
Derivative transactions
|
538
|
544
|
|||||
-
Borrowing, securities lending and securities sold under repurchase
agreements
|
13,264
|
12,016
|
|||||
-
Other
|
221
|
643
|
|||||
Total
|
16,528
|
16,040
|
As
at October 31
|
2005
|
2004
|
|||||
Letters
of guarantee(1)
|
1,313
|
1,225
|
|||||
Documentary
letters of credit(2)
|
110
|
102
|
|||||
Credit
card loans(3)
|
5,331
|
4,882
|
|||||
Commitments
to extend credit(3)
|
|||||||
Original
term of one year or less
|
6,589
|
6,756
|
|||||
Original
term of more than one year
|
11,074
|
10,346
|
(1) |
See
“Letters of guarantee” on page
105.
|
(2) |
Documentary
letters of credit are documents issued by the Bank and used in
international trade to enable a third party to draw drafts on the
Bank up
to an amount established under specific terms and conditions; these
instruments are collateralized by the delivery of the goods they
represent.
|
(3) |
Credit
card loans and commitments to extend credit represent the undrawn
portions
of credit authorizations granted in the form of loans, acceptances,
letters of guarantee and documentary letters of credit. The Bank
is
required at all times to make the undrawn portion of the authorization
available, subject to certain
conditions.
|
Remaining
term to maturity
|
2005
|
2004
|
|||||||||||||||||||||||
Contracts
|
Contracts
|
||||||||||||||||||||||||
held
for
|
held
for
|
||||||||||||||||||||||||
Within
|
3
to 12
|
1
to 5
|
Over
|
Total
|
trading
|
non-trading
|
Total
|
||||||||||||||||||
3
months
|
months
|
years
|
5
years
|
contracts
|
purposes
|
purposes
|
contracts
|
||||||||||||||||||
Foreign
exchange contracts
|
|||||||||||||||||||||||||
OTC
contracts
|
|||||||||||||||||||||||||
Forwards
|
4,852
|
1,423
|
512
|
—
|
6,787
|
6,760
|
27
|
6,306
|
|||||||||||||||||
Swaps
|
35,272
|
10,230
|
4,582
|
1,060
|
51,144
|
45,141
|
6,003
|
29,559
|
|||||||||||||||||
Options
purchased
|
4,478
|
2,606
|
349
|
—
|
7,433
|
7,433
|
—
|
5,514
|
|||||||||||||||||
Options
written
|
3,321
|
3,263
|
258
|
—
|
6,842
|
6,842
|
—
|
5,284
|
|||||||||||||||||
Total
|
47,923
|
17,522
|
5,701
|
1,060
|
72,206
|
66,176
|
6,030
|
46,663
|
|||||||||||||||||
Exchange-traded
contracts
|
|||||||||||||||||||||||||
Futures
|
|||||||||||||||||||||||||
Long
positions
|
27
|
—
|
—
|
—
|
27
|
27
|
—
|
90
|
|||||||||||||||||
Short
positions
|
88
|
2
|
—
|
—
|
90
|
90
|
—
|
62
|
|||||||||||||||||
Options
purchased
|
30
|
—
|
—
|
—
|
30
|
30
|
—
|
30
|
|||||||||||||||||
Options
written
|
20
|
—
|
—
|
—
|
20
|
20
|
—
|
1
|
|||||||||||||||||
Total
|
165
|
2
|
—
|
—
|
167
|
167
|
—
|
183
|
|||||||||||||||||
Interest
rate contracts
|
|||||||||||||||||||||||||
OTC
contracts
|
|||||||||||||||||||||||||
Forward
rate agreements
|
1,248
|
7,534
|
300
|
—
|
9,082
|
9,082
|
—
|
7,033
|
|||||||||||||||||
Swaps
|
43,650
|
21,885
|
49,287
|
8,312
|
123,134
|
99,794
|
23,340
|
116,761
|
|||||||||||||||||
Options
purchased
|
10,300
|
15,375
|
3,100
|
1,949
|
30,724
|
30,724
|
—
|
13,157
|
|||||||||||||||||
Options
written
|
11,905
|
19,793
|
3,967
|
2,579
|
38,244
|
38,244
|
—
|
13,566
|
|||||||||||||||||
Total
|
67,103
|
64,587
|
56,654
|
12,840
|
201,184
|
177,844
|
23,340
|
150,517
|
|||||||||||||||||
Exchange-traded
contracts
|
|||||||||||||||||||||||||
Futures
|
|||||||||||||||||||||||||
Long
positions
|
3,890
|
491
|
812
|
—
|
5,193
|
5,193
|
—
|
12,316
|
|||||||||||||||||
Short
positions
|
3,840
|
4,273
|
1,557
|
—
|
9,670
|
9,670
|
—
|
21,670
|
|||||||||||||||||
Options
purchased
|
37,747
|
16,492
|
1,046
|
—
|
55,285
|
55,285
|
—
|
21,748
|
|||||||||||||||||
Options
written
|
25,859
|
2,261
|
1,518
|
—
|
29,638
|
29,638
|
—
|
21,002
|
|||||||||||||||||
Total
|
71,336
|
23,517
|
4,933
|
—
|
99,786
|
99,786
|
—
|
76,736
|
|||||||||||||||||
Equity,
commodity and credit derivative contracts
|
|||||||||||||||||||||||||
OTC
contracts
|
|||||||||||||||||||||||||
Forwards
|
19
|
28
|
334
|
72
|
453
|
453
|
—
|
107
|
|||||||||||||||||
Swaps
|
4,850
|
2,839
|
2,133
|
827
|
10,649
|
10,639
|
10
|
13,166
|
|||||||||||||||||
Options
purchased
|
1,212
|
558
|
3,939
|
2,686
|
8,395
|
8,395
|
—
|
1,635
|
|||||||||||||||||
Options
written
|
1,003
|
600
|
189
|
108
|
1,900
|
1,900
|
—
|
1,405
|
|||||||||||||||||
Total
|
7,084
|
4,025
|
6,595
|
3,693
|
21,397
|
21,387
|
10
|
16,313
|
|||||||||||||||||
Exchange-traded
contracts
|
|||||||||||||||||||||||||
Futures
|
|||||||||||||||||||||||||
Long
positions
|
286
|
112
|
42
|
1
|
441
|
441
|
—
|
94
|
|||||||||||||||||
Short
positions
|
1,395
|
31
|
—
|
—
|
1,426
|
1,426
|
—
|
755
|
|||||||||||||||||
Options
purchased
|
3,294
|
998
|
183
|
—
|
4,475
|
3,966
|
509
|
391
|
|||||||||||||||||
Options
written
|
1,795
|
923
|
101
|
—
|
2,819
|
2,310
|
509
|
111
|
|||||||||||||||||
Total
|
6,770
|
2,064
|
326
|
1
|
9,161
|
8,143
|
1,018
|
1,351
|
|||||||||||||||||
Total
2005
|
200,381
|
111,717
|
74,209
|
17,594
|
403,901
|
373,503
|
30,398
|
291,763
|
|||||||||||||||||
Total
2004
|
126,636
|
106,504
|
49,987
|
8,636
|
291,763
|
265,174
|
26,589
|
2005
|
2004
|
||||||||||||||||||||||||||||||
Current
replacement cost
|
Current
replacement cost
|
||||||||||||||||||||||||||||||
Trading(1)
|
Non- trading |
|
Total
|
Credit equiv- |
Risk-
weighted amount |
Trading(1)
|
Non-
trading
|
Total
|
Credit equiv- |
Risk- weighted |
|||||||||||||||||||||
Interest
rate contracts
|
439
|
218
|
657
|
1,134
|
223
|
743
|
376
|
1,119
|
1,443
|
281
|
|||||||||||||||||||||
Foreign
exchange contracts
|
800
|
38
|
838
|
1,744
|
433
|
1,111
|
23
|
1,134
|
1,619
|
354
|
|||||||||||||||||||||
Equity,
commodity and credit derivative contracts
|
1,021
|
7
|
1,028
|
2,628
|
664
|
841
|
4
|
845
|
2,048
|
504
|
|||||||||||||||||||||
2,260
|
263
|
2,523
|
5,506
|
1,320
|
2,695
|
403
|
3,098
|
5,110
|
1,139
|
||||||||||||||||||||||
Impact
of master netting agreements
|
(1,080
|
)
|
(124
|
)
|
(1,204
|
)
|
(2,566
|
)
|
(572
|
)
|
(1,560
|
)
|
—
|
(1,560
|
)
|
(2,394
|
)
|
(535
|
)
|
||||||||||||
1,180
|
139
|
1,319
|
2,940
|
748
|
1,135
|
403
|
1,538
|
2,716
|
604
|
(1) |
Excluding,
in accordance with the guidelines of the Office of the Superintendent
of
Financial Institutions Canada, exchange-traded instruments and forward
contracts with an original maturity of 14 days. The total positive
fair
value of these excluded contracts amounted to $130 million as at
October
31, 2005 (2004: $40 million).
|
2005
|
2004
|
||||||||||||||||||
(millions
of dollars)
|
Positive
|
Negative
|
Net
|
Positive
|
Negative
|
Net
|
|||||||||||||
Contracts
held for trading purposes
|
|||||||||||||||||||
Interest
rate contracts
|
|||||||||||||||||||
Forwards
|
7
|
8
|
(1
|
)
|
6
|
7
|
(1
|
)
|
|||||||||||
Swaps
|
391
|
355
|
36
|
675
|
501
|
174
|
|||||||||||||
Options
|
52
|
46
|
6
|
72
|
65
|
7
|
|||||||||||||
Total
|
450
|
409
|
41
|
753
|
573
|
180
|
|||||||||||||
Foreign
exchange contracts
|
|||||||||||||||||||
Forwards
|
29
|
83
|
(54
|
)
|
54
|
143
|
(89
|
)
|
|||||||||||
Swaps
|
681
|
445
|
236
|
971
|
603
|
368
|
|||||||||||||
Options
|
109
|
118
|
(9
|
)
|
102
|
157
|
(55
|
)
|
|||||||||||
Total
|
819
|
646
|
173
|
1,127
|
903
|
224
|
|||||||||||||
Equity,
commodity and credit derivative contracts
|
|||||||||||||||||||
Forwards
|
64
|
119
|
(55
|
)
|
24
|
171
|
(147
|
)
|
|||||||||||
Swaps
|
783
|
492
|
291
|
615
|
475
|
140
|
|||||||||||||
Options
|
274
|
180
|
94
|
216
|
264
|
(48
|
)
|
||||||||||||
Total
|
1,121
|
791
|
330
|
855
|
910
|
(55
|
)
|
||||||||||||
Total
contracts held for trading purposes
|
2,390
|
1,846
|
544
|
2,735
|
2,386
|
349
|
|||||||||||||
Contracts
held for non-trading purposes
|
|||||||||||||||||||
Interest
rate contracts
|
|||||||||||||||||||
Forwards
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Swaps
|
218
|
94
|
124
|
374
|
183
|
191
|
|||||||||||||
Options
|
—
|
—
|
—
|
2
|
—
|
2
|
|||||||||||||
Total
|
218
|
94
|
124
|
376
|
183
|
193
|
|||||||||||||
Foreign
exchange contracts
|
|||||||||||||||||||
Forwards
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Swaps
|
38
|
52
|
(14
|
)
|
23
|
50
|
(27
|
)
|
|||||||||||
Options
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Total
|
38
|
52
|
(14
|
)
|
23
|
50
|
(27
|
)
|
|||||||||||
Equity,
commodity and credit derivative contracts
|
|||||||||||||||||||
Forwards
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Swaps
|
—
|
—
|
—
|
—
|
—
|
—
|
|||||||||||||
Options
|
7
|
4
|
3
|
4
|
1
|
3
|
|||||||||||||
Total
|
7
|
4
|
3
|
4
|
1
|
3
|
|||||||||||||
Total
contracts held for non-trading purposes
|
263
|
150
|
113
|
403
|
234
|
169
|
|||||||||||||
Total
fair value
|
2,653
|
1,996
|
657
|
3,138
|
2,620
|
518
|
|||||||||||||
Impact
of master netting agreements
|
(1,217
|
)
|
(1,217
|
)
|
—
|
(1,577
|
)
|
(1,577
|
)
|
—
|
|||||||||
1,436
|
779
|
657
|
1,561
|
1,043
|
518
|
2005
|
2004
|
||||||||||||
Replacement
|
Credit
|
Replacement
|
Credit
|
||||||||||
cost
|
equivalent
|
cost
|
equivalent
|
||||||||||
OECD
governments(1)
|
23
|
446
|
13
|
625
|
|||||||||
OECD
banks(1)
|
1,675
|
1,654
|
2,545
|
1,473
|
|||||||||
Other
|
825
|
840
|
540
|
618
|
|||||||||
Total
|
2,523
|
2,940
|
3,098
|
2,716
|
(1) |
Organisation
for Economic Co-operation and
Development
|
2005
|
2004
|
||||||||||||
$
|
%
|
$
|
%
|
||||||||||
North
America
|
|||||||||||||
Canada
|
76,690
|
78.8
|
63,103
|
85.4
|
|||||||||
United
States
|
11,184
|
11.5
|
6,111
|
8.3
|
|||||||||
87,874
|
90.3
|
69,214
|
93.7
|
||||||||||
Europe
|
|||||||||||||
United
Kingdom
|
5,552
|
5.7
|
1,087
|
1.5
|
|||||||||
Germany
|
102
|
0.1
|
244
|
0.3
|
|||||||||
Other
|
2,500
|
2.6
|
2,048
|
2.8
|
|||||||||
8,154
|
8.4
|
3,379
|
4.6
|
||||||||||
Asia
and Pacific
|
1,029
|
1.1
|
612
|
0.8
|
|||||||||
Latin
America and Caribbean
|
230
|
0.2
|
627
|
0.9
|
|||||||||
Middle
East and Africa
|
22
|
—
|
30
|
—
|
|||||||||
Earning
assets as at September 30
|
97,309
|
100.0
|
73,862
|
100.0
|
|||||||||
Other
assets as at September 30
|
11,514
|
9,483
|
|||||||||||
Net
change in assets in October
|
(1,225
|
)
|
5,152
|
||||||||||
Total
assets as at October 31
|
107,598
|
88,497
|
Non-
|
|||||||||||||||||||||||||
Floating
|
Within
|
3
to 12
|
1
to 5
|
Over
|
interest
|
2005
|
2004
|
||||||||||||||||||
rate
|
3
months
|
months
|
years
|
5
years
|
sensitive
|
Total
|
Total
|
||||||||||||||||||
Assets
|
|||||||||||||||||||||||||
Cash
|
—
|
—
|
—
|
—
|
—
|
227
|
227
|
481
|
|||||||||||||||||
Deposits
with financial institutions
|
371
|
5,944
|
1,803
|
—
|
—
|
1,969
|
10,087
|
5,296
|
|||||||||||||||||
Effective
yield
|
1.8
|
%
|
1.8
|
%
|
—
|
%
|
—
|
%
|
|||||||||||||||||
Securities
|
1
|
3,900
|
5,579
|
9,650
|
5,409
|
8,513
|
33,052
|
28,007
|
|||||||||||||||||
Effective
yield
|
3.2
|
%
|
3.2
|
%
|
3.9
|
%
|
4.6
|
%
|
|||||||||||||||||
Loans
|
527
|
32,739
|
5,796
|
8,788
|
223
|
6,068
|
54,141
|
45,994
|
|||||||||||||||||
Effective
yield
|
3.5
|
%
|
5.0
|
%
|
5.3
|
%
|
6.5
|
%
|
|||||||||||||||||
Other
assets
|
—
|
—
|
—
|
—
|
—
|
10,091
|
10,091
|
8,719
|
|||||||||||||||||
899
|
42,583
|
13,178
|
18,438
|
5,632
|
26,868
|
107,598
|
88,497
|
||||||||||||||||||
Liabilities
and shareholders’ equity
|
|||||||||||||||||||||||||
Deposits
|
4,376
|
28,431
|
8,133
|
15,996
|
1,164
|
3,877
|
61,977
|
53,432
|
|||||||||||||||||
Effective
yield
|
2.9
|
%
|
3.2
|
%
|
3.7
|
%
|
4.6
|
%
|
|||||||||||||||||
Other
debt(1)
|
—
|
12,920
|
2,225
|
3,686
|
4,286
|
5,302
|
28,419
|
18,386
|
|||||||||||||||||
Effective
yield
|
2.4
|
%
|
3.0
|
%
|
3.8
|
%
|
4.6
|
%
|
|||||||||||||||||
Subordinated
debentures
|
—
|
—
|
202
|
550
|
350
|
—
|
1,102
|
1,408
|
|||||||||||||||||
Effective
yield
|
-
|
%
|
4.6
|
%
|
6.0
|
%
|
4.9
|
%
|
|||||||||||||||||
Acceptances
and
|
|||||||||||||||||||||||||
other
liabilities
|
1,595
|
13
|
71
|
226
|
82
|
9,516
|
11,503
|
11,067
|
|||||||||||||||||
Shareholders’
equity
|
—
|
—
|
—
|
400
|
—
|
4,197
|
4,597
|
4,204
|
|||||||||||||||||
5,971
|
41,364
|
10,631
|
20,858
|
5,882
|
22,892
|
107,598
|
88,497
|
||||||||||||||||||
On-balance
sheet gap
|
(5,072
|
)
|
1,219
|
2,547
|
(2,420
|
)
|
(250
|
)
|
3,976
|
—
|
—
|
||||||||||||||
Derivative
financial instruments
|
—
|
(18,914
|
)
|
11,146
|
6,139
|
1,629
|
—
|
—
|
—
|
||||||||||||||||
Total
|
(5,072
|
)
|
(17,695
|
)
|
13,693
|
3,719
|
1,379
|
3,976
|
—
|
—
|
|||||||||||||||
Position
in Canadian dollars
|
|||||||||||||||||||||||||
On-balance
sheet total
|
(7,392
|
)
|
6,449
|
1,995
|
(5,269
|
)
|
(954
|
)
|
3,564
|
(1,607
|
)
|
61
|
|||||||||||||
Derivative
financial instruments
|
—
|
(15,628
|
)
|
5,788
|
6,593
|
1,662
|
—
|
(1,585
|
)
|
(301
|
)
|
||||||||||||||
Total
|
(7,392
|
)
|
(9,179
|
)
|
7,783
|
1,324
|
708
|
3,564
|
(3,192
|
)
|
(240
|
)
|
|||||||||||||
Position
in foreign currency
|
|||||||||||||||||||||||||
On-balance
sheet total
|
2,320
|
(5,230
|
)
|
551
|
2,849
|
705
|
412
|
1,607
|
(61
|
)
|
|||||||||||||||
Derivative
financial instruments
|
—
|
(3,286
|
)
|
5,359
|
(454
|
)
|
(34
|
)
|
—
|
1,585
|
301
|
||||||||||||||
Total
|
2,320
|
(8,516
|
)
|
5,910
|
2,395
|
671
|
412
|
3,192
|
240
|
||||||||||||||||
Total
2005
|
(5,072
|
)
|
(17,695
|
)
|
13,693
|
3,719
|
1,379
|
3,976
|
—
|
—
|
|||||||||||||||
Total
2004
|
843
|
(31,765
|
)
|
17,922
|
15,419
|
1,574
|
(3,993
|
)
|
—
|
—
|
(1) |
Obligations
related to securities sold short and securities sold under repurchase
agreements.
|
2005
|
2004
|
||||||||||||||||||
Favourable
|
Favourable
|
||||||||||||||||||
Carrying
|
Fair
|
(unfavourable)
|
Carrying
|
Fair
|
(unfavourable)
|
||||||||||||||
value
|
value
|
variance
|
value
|
value
|
variance
|
||||||||||||||
Assets
|
|||||||||||||||||||
Securities
|
33,052
|
33,126
|
74
|
28,007
|
28,131
|
124
|
|||||||||||||
Loans
|
47,118
|
47,205
|
87
|
41,498
|
41,700
|
202
|
|||||||||||||
Liabilities
|
|||||||||||||||||||
Deposits
|
61,977
|
62,051
|
(74
|
)
|
53,432
|
53,682
|
(250
|
)
|
|||||||||||
Subordinated
debentures
|
1,102
|
1,131
|
(29
|
)
|
1,408
|
1,496
|
(88
|
)
|
2005
|
2004
|
||||||
Mortgage
loans
|
2
|
3
|
|||||
Other
loans
|
61
|
71
|
Personal
and
|
Wealth
|
Financial
|
|||||||||||||||||||||||||||||
Commercial
|
Management
|
Markets
|
Other
|
Total | |||||||||||||||||||||||||||
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
2005
|
2004
|
||||||||||||||||||||||
Net
interest income(1)
|
1,302
|
1,251
|
101
|
94
|
318
|
256
|
(284
|
)
|
(238
|
)
|
1,437
|
1,363
|
|||||||||||||||||||
Other
income(1)
|
749
|
714
|
706
|
649
|
671
|
728
|
140
|
91
|
2,266
|
2,182
|
|||||||||||||||||||||
Total
revenues
|
2,051
|
1,965
|
807
|
743
|
989
|
984
|
(144
|
)
|
(147
|
)
|
3,703
|
3,545
|
|||||||||||||||||||
Operating
expenses
|
1,254
|
1,218
|
619
|
581
|
595
|
543
|
31
|
46
|
2,499
|
2,388
|
|||||||||||||||||||||
Contribution
|
797
|
747
|
188
|
162
|
394
|
441
|
(175
|
)
|
(193
|
)
|
1,204
|
1,157
|
|||||||||||||||||||
Provision
for credit losses
|
117
|
137
|
—
|
—
|
8
|
51
|
(92
|
)
|
(102
|
)
|
33
|
86
|
|||||||||||||||||||
Income
before income taxes and non-controlling interest
|
680
|
610
|
188
|
162
|
386
|
390
|
(83
|
)
|
(91
|
)
|
1,171
|
1,071
|
|||||||||||||||||||
Income
taxes(1)
|
227
|
218
|
70
|
58
|
135
|
145
|
(141
|
)
|
(103
|
)
|
291
|
318
|
|||||||||||||||||||
Non-controlling
interest
|
—
|
—
|
3
|
4
|
1
|
—
|
21
|
24
|
25
|
28
|
|||||||||||||||||||||
Net
income (net loss)
|
453
|
392
|
115
|
100
|
250
|
245
|
37
|
(12
|
)
|
855
|
725
|
||||||||||||||||||||
Average
assets
|
43,956
|
40,511
|
882
|
834
|
51,809
|
42,367
|
(5,745
|
)
|
(5,040
|
)
|
90,902
|
78,672
|
(1) |
Net
interest income was grossed up by $90 million (2004: $61 million)
and
other income by $60 million (2004: $47 million) to bring the tax-exempt
income earned on certain securities in line with the income earned
on
other financial instruments. An equivalent amount was added to income
taxes. The effect of these adjustments is reversed under the “Other”
heading.
|
Restated
|
|||||||
2005
|
2004
|
||||||
Net
income per Canadian GAAP
|
855
|
725
|
|||||
Charge
for other-than-temporary impairment
|
(4
|
)
|
—
|
||||
Investment
account securities
|
72
|
(2
|
)
|
||||
Sale
of premises - FIN 46R
|
—
|
(2
|
)
|
||||
Mutual
funds - FIN 46R
|
—
|
14
|
|||||
Loan
securitization
|
—
|
6
|
|||||
Derivatives
and hedging
|
(9
|
)
|
(68
|
)
|
|||
Income
tax effect on above items
|
(19
|
)
|
19
|
||||
Net
income per U.S. GAAP
|
895
|
692
|
|||||
Net
earnings per common share - U.S. GAAP
|
|||||||
Basic
|
|
$5.22
|
|
$3.91
|
|||
Diluted
|
|
$5.15
|
|
$3.86
|
Restated
|
|||||||
2005
|
2004
|
||||||
Net
income per U.S. GAAP
|
895
|
692
|
|||||
Other
comprehensive income
|
|||||||
Change
in unrealized gains and losses on securities available for sale,
net of
income tax savings of $30 (2004: $5)
|
(59
|
)
|
(6
|
)
|
|||
Change
in gains and losses on derivatives designated as cash flow hedges,
net of
income tax savings of $19 (2004: $12)
|
(43
|
)
|
(27
|
)
|
|||
Minimum
pension liability adjustment, net of income taxes (2004: $2)
|
—
|
4
|
|||||
Change
in unrealized foreign currency translation adjustments, net of income
taxes of $13 (2004: $31)
|
(16
|
)
|
(16
|
)
|
|||
Comprehensive
income
|
777
|
647
|
|
Restated
|
||||||||||||||||||
2005
|
2004
|
||||||||||||||||||
Canadian
|
U.S.
|
Canadian
|
U.S.
|
||||||||||||||||
GAAP
|
Variation
|
GAAP
|
GAAP
|
Variation
|
GAAP
|
||||||||||||||
Assets
|
|||||||||||||||||||
Cash
and deposits with financial institutions
|
10,314
|
(29
|
)
|
10,285
|
5,777
|
2
|
5,779
|
||||||||||||
Securities
|
|||||||||||||||||||
Investment
account - available for sale
|
6,869
|
74
|
6,943
|
7,446
|
172
|
7,618
|
|||||||||||||
Trading
account
|
26,183
|
634
|
26,817
|
20,561
|
297
|
20,858
|
|||||||||||||
Securities
purchased under reverse repurchase agreements
|
7,023
|
—
|
7,023
|
4,496
|
—
|
4,496
|
|||||||||||||
Loans
|
47,118
|
—
|
47,118
|
41,498
|
—
|
41,498
|
|||||||||||||
Premises
and equipment
|
355
|
—
|
355
|
267
|
84
|
351
|
|||||||||||||
Goodwill
|
662
|
22
|
684
|
662
|
22
|
684
|
|||||||||||||
Other
assets
|
9,074
|
1,419
|
10,493
|
7,790
|
(773
|
)
|
7,017
|
||||||||||||
Total
assets
|
107,598
|
2,120
|
109,718
|
88,497
|
(196
|
)
|
88,301
|
||||||||||||
Liabilities
|
|||||||||||||||||||
Deposits
|
61,977
|
10
|
61,987
|
53,432
|
40
|
53,472
|
|||||||||||||
Other
liabilities
|
39,435
|
1,934
|
41,369
|
29,083
|
(564
|
)
|
28,519
|
||||||||||||
Subordinated
debentures
|
1,102
|
55
|
1,157
|
1,408
|
96
|
1,504
|
|||||||||||||
Non-controlling
interest
|
487
|
—
|
487
|
370
|
44
|
414
|
|||||||||||||
Total
liabilities
|
103,001
|
1,999
|
105,000
|
84,293
|
(384
|
)
|
83,909
|
||||||||||||
Shareholders’
equity
|
|||||||||||||||||||
Preferred
shares
|
400
|
—
|
400
|
375
|
—
|
375
|
|||||||||||||
Common
shares
|
1,565
|
24
|
1,589
|
1,545
|
24
|
1,569
|
|||||||||||||
Contributed
surplus
|
13
|
—
|
13
|
7
|
—
|
7
|
|||||||||||||
Unrealized
foreign currency translation adjustments
|
(26
|
)
|
26
|
—
|
(10
|
)
|
10
|
—
|
|||||||||||
Retained
earnings
|
2,645
|
33
|
2,678
|
2,287
|
(2
|
)
|
2,285
|
||||||||||||
Accumulated
other comprehensive income
|
—
|
38
|
38
|
—
|
156
|
156
|
|||||||||||||
Total
shareholders’ equity
|
4,597
|
121
|
4,718
|
4,204
|
188
|
4,392
|
|||||||||||||
Total
liabilities and shareholders’ equity
|
107,598
|
2,120
|
109,718
|
88,497
|
(196
|
)
|
88,301
|