The shift in our portfolio based on the location of security (see Figure 3) reflected our continued focus to increase full-service client relationships across our national footprint. Very strong growth in the Ontario market, supported by solid momentum from our Markham and Mississauga banking centres, increased the proportion of loans to 25% at October 31, 2023, compared to 24% last year. The shift in geographic portfolio composition in Alberta and BC was primarily driven by lower commercial mortgage balances as discussed above. Figure 3 – Geographical Distribution of Outstanding Loans based on Location of Security (October 31, 2022 in brackets)
The loan portfolio is focused on areas of demonstrated lending expertise, while concentrations measured by geographic area and industry sector are managed within specified tolerance levels. Our loan portfolio is well-diversified and continued to achieve greater diversification from a geographic and industry perspective this year. Table 9 – Outstanding Loans by Industry Sector (1) (% at October 31) 2023 2022 Real estate operations 20 % 21 % Consumer loans and residential mortgages 19 19 Construction 17 18 Finance and insurance 9 9 Transportation and storage 7 7 Hotel/motel 5 5 Retail trade 4 3 Agriculture 3 2 Health and social services 2 3 Manufacturing 2 2 Professional, scientific, and technical services 2 2 Oil and gas service 2 2 Oil and gas production 2 1 Accommodation and food services 1 1 Logging/forestry 1 1 Wholesale trade 1 1 Utilities 1 1 All other 2 2 Total 100 % 100 %
(1) Based on North American Industry Classification System (NAICS) codes.
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