PCL Ratios and Provision for Credit Losses Review
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
Our public communications often include oral or written forward-looking statements. Our
public communications often include oral or written forward-looking statements.
Statements of this type are included in this document, and may be included in other
filings with Canadian securities regulators or the U.S. Securities and Exchange
Commission, or in other communications. All such statements are made pursuant to the
"safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995 and
any applicable Canadian securities legislation. Forward-looking statements may include,
but are not limited to, statements made in this document, the Management's Discussion
and Analysis in the Bank's 2017 Annual Report under the headings "Outlook" and in
other statements regarding the Bank's objectives, strategies to achieve those objectives,
the regulatory environment in which the Bank operates, anticipated financial results
(including those in the area of risk management), and the outlook for the Bank's
businesses and for the Canadian, U.S. and global economies. Such statements are
typically identified by words or phrases such as "believe," "expect," "anticipate," "intent,"
"estimate," "plan," "may increase," "may fluctuate," and similar expressions of future or
conditional verbs, such as "will," "may," "should," "would" and "could."
By their very nature, forward-looking statements involve numerous assumptions,
inherent risks and uncertainties, both general and specific, and the risk that predictions
and other forward looking statements will not prove to be accurate. Do not unduly rely on
forward-looking statements, as a number of important factors, many of which are
beyond the Bank's control and the effects of which can be difficult to predict, could
cause actual results to differ materially from the estimates and intentions expressed in
such forward-looking statements. These factors include, but are not limited to: the
economic and financial conditions in Canada and globally; fluctuations in interest rates
and currency values; liquidity and funding; significant market volatility and interruptions;
the failure of third parties to comply with their obligations to the Bank and its affiliates;
changes in monetary policy; legislative and regulatory developments in Canada and
elsewhere, including changes to, and interpretations of tax laws and risk-based capital
guidelines and reporting instructions and liquidity regulatory guidance; changes to the
Bank's credit ratings; operational (including technology) and infrastructure risks;
reputational risks; the risk that the Bank's risk management models may not take into
account all relevant factors; the accuracy and completeness of information the Bank
receives on customers and counterparties; the timely development and introduction of
new products and services; the Bank's ability to expand existing distribution channels
and to develop and realize revenues from new distribution channels; the Bank's ability to
complete and integrate acquisitions and its other growth strategies; critical accounting
estimates and the effects of changes in accounting policies and methods used by the
Bank as described in the Bank's annual financial statements (See "Controls and
Accounting Policies - Critical accounting estimates" in the Bank's 2017 Annual Report)
and updated by quarterly reports; global capital markets activity; the Bank's ability to
attract and retain key executives; reliance on third parties to provide components of the
Bank's business infrastructure; unexpected changes in consumer spending and saving
habits; technological developments; fraud by internal or external parties, including the
use of new technologies in unprecedented ways to defraud the Bank or its customers;
increasing cyber security risks which may include theft of assets, unauthorized access to
sensitive information or operational disruption; anti-money laundering; consolidation in
the financial services sector in Canada and globally; competition, both from new entrants
and established competitors; judicial and regulatory proceedings; natural disasters,
including, but not limited to, earthquakes and hurricanes, and disruptions to public
infrastructure, such as transportation, communication, power or water supply; the
possible impact of international conflicts and other developments, including terrorist
activities and war; the effects of disease or illness on local, national or international
economies; and the Bank's anticipation of and success in managing the risks implied by
the foregoing. A substantial amount of the Bank's business involves making loans or
otherwise committing resources to specific companies, industries or countries.
Unforeseen events affecting such borrowers, industries or countries could have a
material adverse effect on the Bank's financial results, businesses, financial condition or
liquidity. These and other factors may cause the Bank's actual performance to differ
materially from that contemplated by forward-looking statements. For more information,
see the "Risk Management" section of the Bank's 2017 Annual Report.
Material economic assumptions underlying the forward-looking statements contained in
this document are set out in the 2017 Annual Report under the headings "Outlook", as
updated by quarterly reports. The "Outlook" sections are based on the Bank's views and
the actual outcome is uncertain. Readers should consider the above-noted factors when
reviewing these sections. The preceding list of factors is not exhaustive of all possible
risk factors and other factors could also adversely affect the Bank's results. When
relying on forward-looking statements to make decisions with respect to the Bank and its
securities, investors and others should carefully consider the preceding factors, other
uncertainties and potential events. The forward-looking statements contained in this
document are presented for the purpose of assisting the holders of the Bank's securities
and financial analysts in understanding the Bank's financial position and results of
operations as at and for the periods ended on the dates presented, as well as the Bank's
financial performance objectives, vision and strategic goals, and may not be appropriate
for other purposes. Except as required by law, the Bank does not undertake to update
any forward-looking statements, whether written or oral, that may be made from time to
time by or on its behalf.
Additional information relating to the Bank, including the Bank's Annual Information
Form, can be located on the SEDAR website at www.sedar.com and on the EDGAR
section of the SEC's website at www.sec.gov.
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