Consolidated Financial Statements

Consolidated Statement of Cash Flows

For the Year Ended October 31 (Canadian $ in millions)		2007		2006		2005


Cash Flows from Operating Activities					Restated (see Notes 3 and 22 PDFs)
Net income	$	2,131	$	2,663	$	2,396
Adjustments to determine net cash flows provided by (used in) operating activities
Write-down of securities, other than trading		18		9		11
Net gain on securities, other than trading		(264)		(154)		(176)
Net (increase) in trading securities		(23,028)		(8,565)		(9,848)
Provision for credit losses		353		176		179
Gain on sale of securitized loans		(202)		(69)		(82)
Change in derivative instruments
– (Increase) decrease in derivative asset		(4,991)		238		(6,862)
– Increase in derivative liability		6,127		3,328		5,681
Amortization of premises and equipment		390		360		377
Amortization of intangible assets		46		44		94
Net increase (decrease) in future income taxes		(176)		(153)		91
Net increase (decrease) in current income taxes		(800)		144		(367)
Change in accrued interest
– (Increase) in interest receivable		(129)		(468)		(255)
– Increase in interest payable		537		303		162
Changes in other items and accruals, net		6,051		2,595		1,423
Gain on sale of Harrisdirect LLC (Note 12 PDF)		–		–		(49)
Gain on sale of land and buildings (Note 10 PDF)		(6)		–		(29)

Net Cash Provided by (Used in) Operating Activities		(13,943)		451		(7,254)

Cash Flows from Financing Activities
Net increase in deposits		45,222		13,108		20,643
Net increase (decrease) in securities sold but not yet purchased		10,328		(708)		5,701
Net increase in securities lent or sold under repurchase agreements		2,325		9,987		1,737
Net increase (decrease) in liabilities of subsidiaries		335		(94)		(195)
Proceeds from issuance of securities of a subsidiary		–		–		447
Repayment of subordinated debt (Note 18 PDF)		(483)		(425)		(899)
Proceeds from issuance of subordinated debt (Note 18 PDF)		1,200		700		1,000
Redemption of preferred share liability (Note 21 PDF)		(200)		–		–
Proceeds from issuance of preferred shares (Note 21 PDF)		600		–		–
Proceeds from issuance of common shares		245		258		217
Share issue expense		(14)		–		–
Common shares repurchased for cancellation (Note 21 PDF)		(524)		(376)		(390)
Dividends paid		(1,396)		(1,163)		(955)

Net Cash Provided by Financing Activities		57,638		21,287		27,306

Cash Flows from Investing Activities
Net (increase) decrease in interest bearing deposits with banks		(5,709)		901		(3,901)
Purchases of securities, other than trading		(50,366)		(20,433)		(14,827)
Maturities of securities, other than trading		24,635		9,494		8,402
Proceeds from sales of securities, other than trading		11,824		7,920		8,294
Net (increase) in loans, customers’ liability under acceptances and loan substitute securities		(14,570)		(20,184)		(16,191)
Proceeds from securitization of loans		3,330		4,994		3,130
Net (increase) in securities borrowed or purchased under resale agreements		(8,280)		(3,723)		(5,900)
Proceeds from sales of land and buildings (Note 10 PDF)		45		–		347
Premises and equipment – net purchases		(420)		(583)		(487)
Acquisitions (Note 11 PDF)		(386)		(76)		(194)
Proceeds from sale of Harrisdirect LLC (Note 12 PDF)		–		–		827

Net Cash Used in Investing Activities		(39,897)		(21,690)		(20,500)

Effect of Exchange Rate Changes on Cash and Cash Equivalents		(2,606)		(2)		254

Net Increase (Decrease) in Cash and Cash Equivalents		1,192		46		(194)
Cash and Cash Equivalents at Beginning of Year		2,458		2,412		2,606

Cash and Cash Equivalents at End of Year	$	3,650	$	2,458	$	2,412

Represented by:
Cash and non-interest bearing deposits with Bank of Canada and other banks	$	2,264	$	1,154	$	1,309
Cheques and other items in transit, net		1,386		1,304		1,103

	$	3,650	$	2,458	$	2,412

Supplemental Disclosure of Cash Flow Information
Amount of interest paid in the year	$	11,447	$	7,873	$	5,222
Amount of income taxes paid in the year	$	940	$	630	$	1,065

The accompanying notes to consolidated financial statements (PDF, 465 KB) are an integral part of these statements. Certain comparative figures have been reclassified to conform with the current year’s presentation.