This quarterly earnings news release should be read in conjunction with
our unaudited First Quarter 2014 Report to Shareholders for the three
months ended January 31, 2014, prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), which is available on
our website at http://www.td.com/investor/. This analysis is dated February 26, 2014. Unless otherwise indicated,
all amounts are expressed in Canadian dollars, and have been primarily
derived from the Bank's Annual or Interim Consolidated Financial
Statements prepared in accordance with IFRS. Certain comparative
amounts have been reclassified to conform to the presentation adopted
in the current period. Additional information relating to the Bank is
available on the Bank's website at http://www.td.com, as well as on SEDAR at http://www.sedar.com and on the U.S. Securities and Exchange Commission's SEC website at http://www.sec.gov (EDGAR filers section).
The Bank implemented new and amended standards under IFRS (New IFRS
Standards and Amendments) which required retrospective application,
effective the first quarter of fiscal 2014. As a result, certain
comparative amounts have been restated. For more information refer to
Note 2 of the Interim Consolidated Financial Statements in the First
Quarter 2014 Report to Shareholders.
Reported results conform to Generally Accepted Accounting Principles
(GAAP), in accordance with IFRS. Adjusted measures are non-GAAP
measures. Refer to the "How the Bank Reports" section of the
Management's Discussion and Analysis (MD&A) for an explanation of
reported and adjusted results.
Effective the first quarter of 2014, the results of the Canadian wealth
and insurance businesses are reported in the Canadian Retail segment,
and the results of the U.S. wealth business, as well as the Bank's
investment in TD Ameritrade, are reported in the U.S. Retail segment.
The prior period segmented results have been restated accordingly.
As previously announced on December 5, 2013, the Bank's Board of
Directors declared a stock dividend of one common share per each issued
and outstanding common share on the payment date of January 31, 2014
(Stock Dividend). The effect on the Bank's basic and diluted earnings
per share has been presented as if the Stock Dividend was
retrospectively applied to all comparative periods presented.
|
FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first quarter a
year ago:
-
Reported diluted earnings per share were $1.07, compared with $0.93.
-
Adjusted diluted earnings per share were $1.06, compared with $1.00.
-
Reported net income was $2,042 million, compared with $1,784 million.
-
Adjusted net income was $2,024 million, compared with $1,910 million.
FIRST QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The first quarter reported earnings figures included the following items
of note:
-
Amortization of intangibles of $61 million after tax (3 cents per
share), compared with $56 million after tax (3 cents per share) in the
first quarter last year.
-
A gain of $19 million after tax (1 cent per share), due to the change in
fair value of derivatives hedging the reclassified available-for-sale
securities portfolio, compared with a gain of $24 million after tax (1
cent per share) in the first quarter last year.
-
Integration charges of $21 million after tax (1 cent per share) relating
to the acquisition of the credit card portfolio of MBNA Canada,
compared with $24 million after tax (1 cent per share) in the first
quarter last year.
-
A net gain of $196 million after tax (10 cents per share) due to the
sale of TD Waterhouse Institutional Services.
-
Set-up, conversion and other one-time costs totalling $115 million after
tax (6 cents per share) related to the affinity relationship with Aimia
and the acquisition of 50% of CIBC's existing Aeroplan Visa credit card
accounts.
TORONTO, Feb. 27, 2014 /CNW/ - TD Bank Group ("TD" or the "Bank") today
announced its financial results for the first quarter ended January 31,
2014. Results for the quarter reflected good earnings contributions
from all business segments.
"TD performed well in the first quarter, delivering record adjusted
earnings of $2 billion, up 6% from a year ago," said Ed Clark, Group
President and Chief Executive Officer. "We are pleased with these
results in the context of a challenging operating environment. We
remain confident that our customer-focused, retail-driven business
model will continue to drive sustainable earnings growth."
Canadian Retail
Canadian Retail generated reported net income of $1.2 billion in the
first quarter. On an adjusted basis, net income was $1.3 billion, an
increase of 5% compared with the first quarter last year. These
earnings reflect good loan and deposit volume growth, higher assets
under management in the wealth business and favourable credit
performance, partially offset by higher weather-related claims in the insurance business.
"Our Canadian Retail segment had a good start to the year, with
excellent results from our personal and commercial banking and wealth
businesses, partly offset by a weak quarter in the insurance business,"
said Tim Hockey, Group Head, Canadian Banking, Auto Finance and Wealth
Management. "Looking ahead, we will remain focused on delivering legendary customer service and
convenience across all of our channels. We will continue to invest in
the long-term growth of our businesses and focus on enhancing
productivity."
TD's new suite of Aeroplan credit cards, which launched on January 1,
2014, complements the existing credit card business and builds on TD's position as
a leading North American credit card provider. "We are very pleased
with the launch of our TD Aeroplan credit cards, and early results are
well ahead of expectations," said Riaz Ahmed, Group Head, Insurance,
Credit Cards, and Enterprise Strategy.
U.S. Retail
U.S. Retail, excluding the Bank's investment in TD Ameritrade, generated net income of
US$398 million on both a reported and adjusted basis, an increase of 5%
on an adjusted basis compared with the first quarter last year. Results
were driven primarily by strong volume growth, favourable credit, and
acquisitions, partially offset by lower security gains and increased
investment related to regulatory requirements and infrastructure. TD
Ameritrade contributed US$65 million in earnings to the segment, an
increase of 35% compared with the first quarter last year, reflecting
strong underlying business growth.
"Our U.S. Retail segment had a good first quarter," said Mike Pedersen,
Group Head, U.S. Banking. "Looking ahead, we are committed to
delivering superior organic growth by strengthening our distribution
system, deepening customer relationships, and continuing to deliver
legendary service and convenience."
Wholesale Banking
Wholesale Banking net income for the quarter was $230 million, an
increase of 44% compared with the first quarter last year, driven
primarily by higher trading-related revenue, advisory and underwriting
fees.
"We are very pleased with our strong first quarter results," said Bob
Dorrance, Group Head, Wholesale Banking. "While a challenging
environment continues to impact trading conditions and client activity
in the medium term, we are encouraged by the improvement in capital
markets and the economy. Looking ahead, we are confident that our
diversified, integrated business model will continue to deliver solid
results."
Capital
TD's Common Equity Tier 1 ratio on a Basel III fully phased-in basis was
8.9%, compared with 9.0% last quarter.
Conclusion
"Today we also announced a dividend increase of 4 cents per common share
for the dividend payable in April, demonstrating the Board's confidence
in TD's ability to deliver sustained long-term earnings growth, and
consistent with our aim to move the dividend payout ratio closer to the
mid-point of our range," said Clark.
"Overall we are pleased with our start to 2014 and our current business
mix, which benefits from the relative strength of the U.S. economy. We
will continue to strategically invest in our businesses while prudently
managing our expense growth. We remain focused on delivering value for
our customers, employees, communities and shareholders."
The foregoing contains forward-looking statements. Please see the
"Caution Regarding Forward-Looking Statements" on page 3.
Caution Regarding Forward-Looking Statements
From time to time, the Bank makes written and/or oral forward-looking
statements, including in this document, in other filings with Canadian
regulators or the U.S. Securities and Exchange Commission (SEC), and in
other communications. In addition, representatives of the Bank may make
forward-looking statements orally to analysts, investors, the media and
others. All such statements are made pursuant to the "safe harbour"
provisions of, and are intended to be forward-looking statements under,
applicable Canadian and U.S. securities legislation, including the U.S.
Private Securities Litigation Reform Act of 1995. Forward-looking
statements include, but are not limited to, statements made in this
document, the Management's Discussion and Analysis in the Bank's 2013
Annual Report ("2013 MD&A") under the headings "Economic Summary and
Outlook", for each business segment "Business Outlook and Focus for
2014" and in other statements regarding the Bank's objectives and
priorities for 2014 and beyond and strategies to achieve them, and the
Bank's anticipated financial performance. Forward-looking statements
are typically identified by words such as "will", "should", "believe",
"expect", "anticipate", "intend", "estimate", "plan", "may", and
"could".
By their very nature, these forward-looking statements require the Bank
to make assumptions and are subject to inherent risks and
uncertainties, general and specific. Especially in light of the
uncertainty related to the physical, financial, economic, political,
and regulatory environments, such risks and uncertainties - many of
which are beyond the Bank's control and the effects of which can be
difficult to predict - may cause actual results to differ materially
from the expectations expressed in the forward-looking statements. Risk
factors that could cause such differences include: credit, market
(including equity, commodity, foreign exchange, and interest rate),
liquidity, operational (including technology), reputational, insurance,
strategic, regulatory, legal, environmental, capital adequacy, and
other risks. Examples of such risk factors include the general business
and economic conditions in the regions in which the Bank operates;
disruptions in or attacks (including cyber attacks) on the Bank's
information technology, internet, network access or other voice or data
communications systems or services; the evolution of various types of
fraud to which the Bank is exposed; the failure of third parties to
comply with their obligations to the Bank or its affiliates relating to
the care and control of information; the impact of recent legislative
and regulatory developments; the overall difficult litigation
environment, including in the U.S.; changes to the Bank's credit
ratings; changes in currency and interest rates; increased funding
costs for credit due to market illiquidity and competition for funding;
and the occurrence of natural and unnatural catastrophic events and
claims resulting from such events. The Bank cautions that the preceding
list is not exhaustive of all possible risk factors and other factors
could also adversely affect the Bank's results. For more detailed
information, please see the "Risk Factors and Management" section of
the 2013 MD&A, as may be updated in subsequently filed quarterly
reports to shareholders and news releases (as applicable) related to
any transactions discussed under the heading "Significant Events" in
the relevant MD&A, which applicable releases may be found on www.td.com. All such factors should be considered carefully, as well as other
uncertainties and potential events, and the inherent uncertainty of
forward-looking statements, when making decisions with respect to the
Bank and the Bank cautions readers not to place undue reliance on the
Bank's forward-looking statements.
Material economic assumptions underlying the forward-looking statements
contained in this document are set out in the 2013 MD&A under the
headings "Economic Summary and Outlook", and for each business segment,
"Business Outlook and Focus for 2014", each as updated in subsequently
filed quarterly reports to shareholders.
Any forward-looking statements contained in this document represent the
views of management only as of the date hereof and are presented for
the purpose of assisting the Bank's shareholders and analysts in
understanding the Bank's financial position, objectives and priorities
and anticipated financial performance as at and for the periods ended
on the dates presented, and may not be appropriate for other purposes.
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, except as required under applicable securities legislation.
|
This document was reviewed by the Bank's Audit Committee and was
approved by the Bank's Board of Directors, on the Audit Committee's
recommendation, prior to its release.
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 1: FINANCIAL HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars, except as noted)
|
For the three months ended
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Results of operations
|
|
|
|
|
|
|
|
|
|
|
Total revenue
|
$
|
7,565
|
|
$
|
7,000
|
|
$
|
6,567
|
|
|
Provision for credit losses
|
|
456
|
|
|
352
|
|
|
385
|
|
|
Insurance claims and related expenses
|
|
683
|
|
|
711
|
|
|
596
|
|
|
Non-interest expenses
|
|
4,096
|
|
|
4,164
|
|
|
3,502
|
|
|
Net income - reported
|
|
2,042
|
|
|
1,616
|
|
|
1,784
|
|
|
Net income - adjusted1
|
|
2,024
|
|
|
1,815
|
|
|
1,910
|
|
|
Return on common equity - reported
|
|
16.4
|
%
|
|
13.4
|
%
|
|
15.6
|
%
|
|
Return on common equity - adjusted2
|
|
16.2
|
%
|
|
15.1
|
%
|
|
16.7
|
%
|
|
Financial position
|
|
|
|
|
|
|
|
|
|
|
Total assets
|
$
|
908,896
|
|
$
|
862,021
|
|
$
|
818,250
|
|
|
Total equity
|
|
53,909
|
|
|
51,383
|
|
|
48,866
|
|
|
Total risk-weighted assets3
|
|
312,972
|
|
|
286,355
|
|
|
274,445
|
|
|
Financial ratios
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio - reported
|
|
54.1
|
%
|
|
59.5
|
%
|
|
53.3
|
%
|
|
Efficiency ratio - adjusted1
|
|
52.5
|
%
|
|
55.4
|
%
|
|
50.6
|
%
|
|
Common Equity Tier 1 capital ratio3
|
|
8.9
|
%
|
|
9.0
|
%
|
|
8.8
|
%
|
|
Tier 1 capital ratio3
|
|
10.5
|
%
|
|
11.0
|
%
|
|
10.9
|
%
|
|
Provision for credit losses as a % of net average loans and acceptances4
|
|
0.40
|
%
|
|
0.34
|
%
|
|
0.35
|
%
|
|
Common share information - reported (dollars)
|
|
|
|
|
|
|
|
|
|
|
Per share earnings
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.07
|
|
$
|
0.84
|
|
$
|
0.93
|
|
|
|
Diluted
|
|
1.07
|
|
|
0.84
|
|
|
0.93
|
|
|
Dividends per share
|
|
0.43
|
|
|
0.43
|
|
|
0.39
|
|
|
Book value per share
|
|
26.91
|
|
|
25.33
|
|
|
23.89
|
|
|
Closing share price
|
|
48.16
|
|
|
47.82
|
|
|
41.65
|
|
|
Shares outstanding (millions)
|
|
|
|
|
|
|
|
|
|
|
|
Average basic
|
|
1,835.3
|
|
|
1,833.4
|
|
|
1,833.6
|
|
|
|
Average diluted
|
|
1,841.1
|
|
|
1,839.0
|
|
|
1,845.2
|
|
|
|
End of period
|
|
1,837.7
|
|
|
1,835.0
|
|
|
1,841.1
|
|
|
Market capitalization (billions of Canadian dollars)
|
$
|
88.5
|
|
$
|
87.7
|
|
$
|
76.7
|
|
|
Dividend yield
|
|
3.4
|
%
|
|
3.5
|
%
|
|
3.7
|
%
|
|
Dividend payout ratio
|
|
40.1
|
%
|
|
50.6
|
%
|
|
41.3
|
%
|
|
Price-earnings ratio
|
|
13.4
|
%
|
|
13.9
|
%
|
|
11.8
|
%
|
|
Common share information - adjusted (dollars)1
|
|
|
|
|
|
|
|
|
|
|
Per share earnings
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.06
|
|
$
|
0.95
|
|
$
|
1.00
|
|
|
|
Diluted
|
|
1.06
|
|
|
0.95
|
|
|
1.00
|
|
|
Dividend payout ratio
|
|
40.4
|
%
|
|
44.8
|
%
|
|
38.5
|
%
|
|
Price-earnings ratio
|
|
12.7
|
%
|
|
12.9
|
%
|
|
11.0
|
%
|
|
1
|
Adjusted measures are non-GAAP measures. Refer to the "How the Bank
Reports" section for an explanation of reported and adjusted results.
|
|
2
|
Adjusted return on common equity is a non-GAAP financial measure. Refer
to the "Return on Common Equity" section for an explanation.
|
|
3
|
Prior to the first quarter of 2014, amounts have not been adjusted to
reflect the impact of the New IFRS Standards and Amendments.
|
|
4
|
Excludes acquired credit-impaired loans and debt securities classified
as loans. For additional information on acquired credit-impaired loans,
see the "Credit Portfolio Quality" section of this document and Note 5
to the Interim Consolidated Financial Statements. For additional
information on debt securities classified as loans, see the "Exposure
to Non-Agency Collateralized Mortgage Obligations" discussion and
tables in the "Credit Portfolio Quality" section of this document and
Note 5 to the Interim Consolidated Financial Statements.
|
|
|
|
HOW WE PERFORMED
How the Bank Reports
The Bank prepares its Interim Consolidated Financial Statements in
accordance with IFRS, the current GAAP, and refers to results prepared
in accordance with IFRS as "reported" results. The Bank also utilizes
non-GAAP financial measures to arrive at "adjusted" results to assess
each of its businesses and to measure the overall Bank performance. To
arrive at adjusted results, the Bank removes "items of note", net of
income taxes, from reported results. The items of note relate to items
which management does not believe are indicative of underlying business
performance. The Bank believes that adjusted results provide the reader
with a better understanding of how management views the Bank's
performance. The items of note are listed in the table on the following
page. As explained, adjusted results are different from reported
results determined in accordance with IFRS. Adjusted results, items of
note, and related terms used in this document are not defined terms
under IFRS and, therefore, may not be comparable to similar terms used
by other issuers. The Bank implemented New IFRS Standards and
Amendments which required retrospective application, effective the
first quarter of fiscal 2014. As a result, certain comparative amounts
have been restated. For more information refer to Note 2 of the Interim
Consolidated Financial Statements in this document.
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 2: OPERATING RESULTS - REPORTED
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
|
For the three months ended
|
|
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Net interest income
|
|
$
|
4,301
|
|
$
|
4,183
|
|
$
|
3,845
|
|
|
Non-interest income
|
|
|
3,264
|
|
|
2,817
|
|
|
2,722
|
|
|
Total revenue
|
|
|
7,565
|
|
|
7,000
|
|
|
6,567
|
|
|
Provision for credit losses
|
|
|
456
|
|
|
352
|
|
|
385
|
|
|
Insurance claims and related expenses
|
|
|
683
|
|
|
711
|
|
|
596
|
|
|
Non-interest expenses
|
|
|
4,096
|
|
|
4,164
|
|
|
3,502
|
|
|
Income before income taxes and equity in net income of an investment in
associate
|
|
|
2,330
|
|
|
1,773
|
|
|
2,084
|
|
|
Provision for income taxes
|
|
|
365
|
|
|
238
|
|
|
359
|
|
|
Equity in net income of an investment in associate, net of income taxes
|
|
|
77
|
|
|
81
|
|
|
59
|
|
|
Net income - reported
|
|
|
2,042
|
|
|
1,616
|
|
|
1,784
|
|
|
Preferred dividends
|
|
|
46
|
|
|
49
|
|
|
49
|
|
|
Net income available to common shareholders and non-controlling
interests in subsidiaries
|
|
$
|
1,996
|
|
$
|
1,567
|
|
$
|
1,735
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests
|
|
$
|
27
|
|
$
|
27
|
|
$
|
26
|
|
|
Common shareholders
|
|
$
|
1,969
|
|
$
|
1,540
|
|
$
|
1,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table provides a reconciliation between the Bank's
adjusted and reported results.
|
|
|
|
TABLE 3: NON-GAAP FINANCIAL MEASURES - RECONCILIATION OF ADJUSTED TO
REPORTED NET INCOME
|
|
|
(millions of Canadian dollars)
|
|
For the three months ended
|
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Operating results - adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income
|
|
$
|
4,301
|
|
$
|
4,183
|
|
$
|
3,845
|
|
|
Non-interest income1
|
|
|
3,011
|
|
|
2,834
|
|
|
2,691
|
|
|
Total revenue
|
|
|
7,312
|
|
|
7,017
|
|
|
6,536
|
|
|
Provision for credit losses2
|
|
|
456
|
|
|
392
|
|
|
385
|
|
|
Insurance claims and related expenses
|
|
|
683
|
|
|
711
|
|
|
596
|
|
|
Non-interest expenses3
|
|
|
3,841
|
|
|
3,890
|
|
|
3,307
|
|
|
Income before income taxes and equity in net income of an investment in
associate
|
|
|
2,332
|
|
|
2,024
|
|
|
2,248
|
|
|
Provision for income taxes4
|
|
|
399
|
|
|
303
|
|
|
410
|
|
|
Equity in net income of an investment in associate, net of income taxes5
|
|
|
91
|
|
|
94
|
|
|
72
|
|
|
Net income - adjusted
|
|
|
2,024
|
|
|
1,815
|
|
|
1,910
|
|
|
Preferred dividends
|
|
|
46
|
|
|
49
|
|
|
49
|
|
|
Net income available to common shareholders and non-controlling
interests in
|
|
|
|
|
|
|
|
|
|
|
|
|
subsidiaries - adjusted
|
|
|
1,978
|
|
|
1,766
|
|
|
1,861
|
|
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
|
Non-controlling interests in subsidiaries, net of income taxes
|
|
|
27
|
|
|
27
|
|
|
26
|
|
|
Net income available to common shareholders - adjusted
|
|
|
1,951
|
|
|
1,739
|
|
|
1,835
|
|
|
Adjustments for items of note, net of income taxes
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles6
|
|
|
(61)
|
|
|
(59)
|
|
|
(56)
|
|
|
Fair value of derivatives hedging the reclassified available-for-sale
securities portfolio7
|
|
|
19
|
|
|
(15)
|
|
|
24
|
|
|
Integration charges relating to the acquisition of the credit card
portfolio of MBNA Canada8
|
|
|
(21)
|
|
|
(14)
|
|
|
(24)
|
|
|
Gain on sale of TD Waterhouse Institutional Services9
|
|
|
196
|
|
|
-
|
|
|
-
|
|
|
Set-up, conversion and other one-time costs related to affinity
relationship with Aimia and acquisition of
|
|
|
|
|
|
|
|
|
|
|
|
|
Aeroplan Visa credit card accounts10
|
|
|
(115)
|
|
|
(20)
|
|
|
-
|
|
|
Litigation and litigation-related charge/reserve11
|
|
|
-
|
|
|
(30)
|
|
|
(70)
|
|
|
Impact of Alberta flood on the loan portfolio12
|
|
|
-
|
|
|
29
|
|
|
-
|
|
|
Restructuring charges13
|
|
|
-
|
|
|
(90)
|
|
|
-
|
|
|
Total adjustments for items of note
|
|
|
18
|
|
|
(199)
|
|
|
(126)
|
|
|
Net income available to common shareholders - reported
|
|
$
|
1,969
|
|
$
|
1,540
|
$
|
|
1,709
|
|
|
1
|
Adjusted non-interest income excludes the following items of note: first quarter 2014 - $22 million gain due to change in fair value of derivatives hedging
the reclassified available-for-sale (AFS) securities portfolio, as
explained in footnote 7; $231 million gain due to the sale of TD
Waterhouse Institutional Services, as explained in footnote 9; fourth quarter 2013 - $17 million loss due to change in fair value of derivatives hedging
the reclassified AFS securities portfolio; first quarter 2013 - $31 million gain due to change in fair value of derivatives hedging
the reclassified AFS securities portfolio.
|
|
2
|
Adjusted provision for credit losses (PCL) excludes the following items
of note: fourth quarter 2013 - $40 million release on the provision set up for the impact of the
Alberta flood on the loan portfolio, as explained in footnote 12.
|
|
3
|
Adjusted non-interest expenses excludes the following items of note:
first quarter 2014 - $71 million amortization of intangibles, as
explained in footnote 6; $28 million of integration charges relating to
the acquisition of the credit card portfolio of MBNA Canada, as
explained in footnote 8; $156 million of costs in relation to the
affinity relationship with Aimia and acquisition of Aeroplan Visa
credit card accounts, as explained in footnote 10; fourth quarter 2013
- $70 million amortization of intangibles; $19 million of integration
charges relating to the acquisition of the credit card portfolio of
MBNA Canada; $30 million of litigation and litigation-related charges,
as explained in footnote 11; $129 million due to the initiatives to
reduce costs, as explained in footnote 13; $27 million of costs in
relation to the affinity relationship with Aimia and acquisition of
Aeroplan Visa credit card accounts; first quarter 2013 - $66 million
amortization of intangibles; $32 million of integration charges
relating to the acquisition of the credit card portfolio of MBNA
Canada; $97 million of litigation and litigation-related charges.
|
|
4
|
For reconciliation between reported and adjusted provision for income
taxes, see the "Non-GAAP Financial Measures - Reconciliation of
Reported to Adjusted Provision for Income Taxes" table in the "Income
Taxes" section of this document.
|
|
5
|
Adjusted equity in net income of an investment in associate excludes the
following items of note: first quarter 2014 - $14 million amortization of intangibles, as explained in footnote 6; fourth quarter 2013 - $13 million amortization of intangibles; first quarter 2013 - $13 million amortization of intangibles.
|
|
6
|
Amortization of intangibles relate primarily to the TD Banknorth
acquisition in 2005 and its privatization in 2007, the acquisitions by
TD Banknorth of Hudson United Bancorp in 2006 and Interchange Financial
Services in 2007, the Commerce acquisition in 2008, the amortization of
intangibles included in equity in net income of TD Ameritrade, the
acquisition of the credit card portfolios of MBNA Canada in 2012, the
acquisition of Target Corporation's U.S. credit card portfolio in 2013
and the Epoch Investment Partners, Inc. acquisition in 2013.
Amortization of software is recorded in amortization of intangibles;
however, amortization of software is not included for purposes of items
of note, which only includes amortization of intangibles acquired as a
result of asset acquisitions and business combinations.
|
|
7
|
During 2008, as a result of deterioration in markets and severe
dislocation in the credit market, the Bank changed its trading strategy
with respect to certain trading debt securities. Since the Bank no
longer intended to actively trade in these debt securities, the Bank
reclassified these debt securities from trading to the
available-for-sale category effective August 1, 2008. As part of the
Bank's trading strategy, these debt securities are economically hedged,
primarily with CDS and interest rate swap contracts. This includes
foreign exchange translation exposure related to the debt securities
portfolio and the derivatives hedging it. These derivatives are not
eligible for reclassification and are recorded on a fair value basis
with changes in fair value recorded in the period's earnings.
Management believes that this asymmetry in the accounting treatment
between derivatives and the reclassified debt securities results in
volatility in earnings from period to period that is not indicative of
the economics of the underlying business performance in Wholesale
Banking. The Bank may from time to time replace securities within the
portfolio to best utilize the initial, matched fixed term funding. As a
result, the derivatives are accounted for on an accrual basis in
Wholesale Banking and the gains and losses related to the derivatives
in excess of the accrued amounts are reported in the Corporate segment.
Adjusted results of the Bank exclude the gains and losses of the
derivatives in excess of the accrued amount.
|
|
8
|
As a result of the acquisition of the credit card portfolio of MBNA
Canada, as well as certain other assets and liabilities, the Bank
incurred integration charges. Integration charges consist of costs
related to information technology, employee retention, external
professional consulting charges, marketing (including customer
communication and rebranding), integration-related travel, employee
severance costs, consulting, and training. The Bank's integration
charges related to the MBNA acquisition were higher than what were
anticipated when the transaction was first announced. The elevated
spending was primarily due to additional costs incurred (other than the
amounts capitalized) to build out technology platforms for the
business. Integration charges related to this acquisition were incurred
by the Canadian Retail segment.
|
|
9
|
On November 12, 2013, TD Waterhouse Canada Inc., a subsidiary of the
Bank, completed the sale of the Bank's institutional services business,
known as TD Waterhouse Institutional Services, to a subsidiary of
National Bank of Canada. The transaction price was $250 million in
cash, subject to certain price adjustment mechanisms. A gain of $196
million after tax was recorded in the Corporate segment in other
income. The gain is not considered to be in the normal course of
business for the Bank.
|
|
10
|
On December 27, 2013, the Bank acquired approximately 50% of the
existing Aeroplan credit card portfolio from the Canadian Imperial Bank
of Commerce (CIBC) and on January 1, 2014, the Bank became the primary
issuer of Aeroplan Visa credit cards. The Bank incurred program set-up,
conversion and other one-time costs related to the acquisition of the
cards and related affinity agreement, consisting of information
technology, external professional consulting, marketing, training, and
program management as well as a commercial subsidy payment of $127
million ($94 million after tax) payable to CIBC. These costs are
included as an item of note in the Canadian Retail segment.
|
|
11
|
As a result of certain adverse judgments and settlements in the U.S. in
2012, and after continued evaluation of this portfolio of cases and
reassessment of the existing litigation provision throughout fiscal
year 2013, the Bank took prudent steps to determine, in accordance with
applicable accounting standards, that additional litigation and
litigation-related charges of $97 million ($70 million after tax) and
$30 million ($30 million after tax) were required as a result of recent
developments and settlements reached in the first and third quarters of
2013 respectively.
|
|
12
|
In the third quarter of 2013, the Bank recorded a provision for credit
losses of $48 million after tax for residential loan losses from
Alberta flooding. In the fourth quarter of 2013, an after-tax provision
of $29 million was released. The reduction in the provision reflects an
updated estimate incorporating more current information regarding the
extent of damage, actual delinquencies in impacted areas, and greater
certainty regarding payments to be received under the Alberta Disaster
Recovery Program and from property and default insurance.
|
|
13
|
The Bank undertook certain measures commencing in the fourth quarter of
2013, which are expected to continue through fiscal year 2014, to
reduce costs in a sustainable manner and achieve greater operational
efficiencies. To implement these measures, the Bank recorded a
provision of $129 million ($90 million after tax) for restructuring
initiatives related primarily to retail branch and real estate
optimization initiatives.
|
|
|
|
|
|
|
|
TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE (EPS)1
|
|
|
(Canadian dollars)
|
|
|
|
For the three months ended
|
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Basic earnings per share - reported
|
|
$
|
1.07
|
|
$
|
0.84
|
|
$
|
0.93
|
|
|
Adjustments for items of note2
|
|
|
(0.01)
|
|
|
0.11
|
|
|
0.07
|
|
|
Basic earnings per share - adjusted
|
|
$
|
1.06
|
|
$
|
0.95
|
|
$
|
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share - reported
|
|
$
|
1.07
|
|
$
|
0.84
|
|
$
|
0.93
|
|
|
Adjustments for items of note2
|
|
|
(0.01)
|
|
|
0.11
|
|
|
0.07
|
|
|
Diluted earnings per share - adjusted
|
|
$
|
1.06
|
|
$
|
0.95
|
|
$
|
1.00
|
|
|
1
|
EPS is computed by dividing net income available to common shareholders
by the weighted-average number of shares outstanding during the period.
|
|
2
|
For explanation of items of note, see the "Non-GAAP Financial Measures -
Reconciliation of Adjusted to Reported Net Income" table in the "How We
Performed" section of this document.
|
|
|
|
|
|
|
|
TABLE 5: NON-GAAP FINANCIAL MEASURES - RECONCILIATION OF REPORTED TO ADJUSTED PROVISION FOR INCOME TAXES
|
|
|
(millions of Canadian dollars, except as noted)
|
For the three months ended
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Provision for income taxes - reported
|
$
|
365
|
|
$
|
238
|
|
$
|
359
|
|
|
Adjustments for items of note: Recovery of (provision for) income taxes1,2
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles
|
|
24
|
|
|
24
|
|
|
23
|
|
|
Fair value of derivatives hedging the reclassified available-for-sale
securities portfolio
|
|
(3)
|
|
|
2
|
|
|
(7)
|
|
|
Integration charges relating to the acquisition of the credit card
portfolio of MBNA Canada
|
|
7
|
|
|
5
|
|
|
8
|
|
|
Gain on sale of TD Waterhouse Institutional Services
|
|
(35)
|
|
|
-
|
|
|
-
|
|
|
Set-up, conversion and other one-time costs related to affinity
relationship with Aimia and
|
|
|
|
|
|
|
|
|
|
|
|
acquisition of Aeroplan Visa credit card accounts
|
|
41
|
|
|
7
|
|
|
-
|
|
|
Litigation and litigation-related charge/reserve
|
|
-
|
|
|
(1)
|
|
|
27
|
|
|
Impact of Alberta flood on the loan portfolio
|
|
-
|
|
|
(11)
|
|
|
-
|
|
|
Restructuring charges
|
|
-
|
|
|
39
|
|
|
-
|
|
|
Total adjustments for items of note
|
|
34
|
|
|
65
|
|
|
51
|
|
|
Provision for income taxes - adjusted
|
$
|
399
|
|
$
|
303
|
|
$
|
410
|
|
|
Effective income tax rate - adjusted3
|
|
17.1
|
%
|
|
15.0
|
%
|
|
18.2
|
%
|
|
1
|
For explanations of items of note, see the "Non-GAAP Financial Measures
- Reconciliation of Adjusted to Reported Net Income" table in the "How
We Performed" section of this document.
|
|
2
|
The tax effect for each item of note is calculated using the effective
statutory income tax rate of the applicable legal entity.
|
|
3
|
Adjusted effective income tax rate is the adjusted provision for income
taxes before other taxes as a percentage of adjusted net income before
taxes.
|
|
|
|
Return on Common Equity
The Bank's methodology for allocating capital to its business segments
is aligned with the common equity capital requirements under Basel III.
Beginning November 1, 2013, capital allocated to the business segments
is based on 8% Common Equity Tier 1 (CET1) which includes an additional
allocation charge of 1% of risk-weighted assets (RWA) to account for
OSFI's common equity capital surcharge for Domestic Systemically
Important Banks (D-SIB), resulting in a CET1 capital ratio requirement
of 8% effective January 1, 2016. The return measures for business
segments reflect a return on common equity methodology.
Adjusted return on common equity (ROE) is adjusted net income available
to common shareholders as a percentage of average common equity. ROE is
a percentage rate and is a variation of economic profit which is a
dollar measure. When ROE exceeds the equity cost of capital, economic
profit is positive. The Bank's goal is to maximize economic profit by
achieving ROE that exceeds the equity cost of capital.
Adjusted ROE is a non-GAAP financial measure as it is not a defined term
under IFRS. Readers are cautioned that earnings and other measures
adjusted to a basis other than IFRS do not have standardized meanings
under IFRS and, therefore, may not be comparable to similar terms used
by other issuers.
|
|
|
|
TABLE 6: RETURN ON COMMON EQUITY
|
|
|
(millions of Canadian dollars, except as noted)
|
|
For the three months ended
|
|
|
|
|
January 31
|
|
|
October 31
|
|
|
January 31
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
Average common equity
|
|
$
|
47,736
|
|
|
$
|
45,541
|
|
|
$
|
43,584
|
|
|
Net income available to common shareholders - reported
|
|
|
1,969
|
|
|
|
1,540
|
|
|
|
1,709
|
|
|
Items of note impacting income, net of income taxes1
|
|
|
(18)
|
|
|
|
199
|
|
|
|
126
|
|
|
Net income available to common shareholders - adjusted
|
|
|
1,951
|
|
|
|
1,739
|
|
|
|
1,835
|
|
|
Return on common equity - adjusted
|
|
|
16.2
|
%
|
|
|
15.1
|
%
|
|
|
16.7
|
%
|
|
1
|
For explanations of items of note, see the "Non-GAAP Financial Measures
- Reconciliation of Adjusted to Reported Net Income" table in the "How
We Performed" section of this document.
|
|
|
|
SIGNIFICANT EVENTS IN 2014
Disposal of TD Waterhouse Institutional Services
On November 12, 2013, TD Waterhouse Canada Inc., a subsidiary of the
Bank, completed the sale of the Bank's institutional services business,
known as TD Waterhouse Institutional Services, to a subsidiary of
National Bank of Canada. The transaction price was $250 million in
cash, subject to certain price adjustment mechanisms. A pre-tax gain of
$231 million was recorded in the Corporate segment in other income.
Acquisition of certain CIBC Aeroplan Credit Card Accounts
On December 27, 2013, the Bank, Aimia Inc. (Aimia), and the Canadian
Imperial Bank of Commerce (CIBC) closed a transaction under which the
Bank acquired approximately 50% of CIBC's existing Aeroplan credit card
portfolio, which primarily included accounts held by customers who did
not have an existing retail banking relationship with CIBC. The Bank
accounted for the purchase as an asset acquisition. The results of the
acquisition have been recorded in the Canadian Retail segment.
The Bank acquired approximately 540,000 cardholder accounts with an
outstanding balance of $3.3 billion at a price of par plus $50 million
less certain adjustments for total cash consideration of $3.3 billion.
At the date of acquisition, the Bank recorded the credit card
receivables acquired at their fair value of $3.2 billion and an
intangible asset for the purchased credit card relationships of $149
million. The purchase price is subject to refinement based on final
purchase consideration adjustments.
In connection with the purchase agreement, the Bank will pay CIBC a
further $127 million under a commercial subsidy agreement. This payment
has been recognized as a non-interest expense in the first quarter of
2014.
U.S. Legislative Developments
On February 18, 2014, the Board of Governors of the Federal Reserve
released its final rule (Final Rule) regarding the imposition of
enhanced prudential standards for U.S. bank holding companies with
US$50 billion or more in consolidated assets and foreign banking
organizations (FBOs) with global consolidated and consolidated U.S.
assets of US$50 billion or more doing business in the U.S. The Final
Rule will be effective on July 1, 2016 and will generally require
covered FBOs to hold their U.S. subsidiaries under one top-tier U.S.
holding company by that date. An implementation plan outlining various
requirements of the Final Rule must be submitted no later than January
1, 2015. The top-tier U.S. holding company must be well-capitalized in
accordance with capital rules previously finalized, will be subject to
liquidity and risk management provisions set forth in the Final Rule
and to resolution planning, stress testing and capital plan
requirements previously finalized.
HOW OUR BUSINESSES PERFORMED
Effective November 1, 2013, the Bank revised its reportable segments,
and for management reporting purposes, reports its results under three
key business segments: Canadian Retail, which includes the results of
the Canadian personal and commercial banking businesses, Canadian
credit cards, TD Auto Finance Canada and Canadian wealth and insurance
businesses; U.S. Retail, which includes the results of the U.S.
personal and commercial banking businesses, U.S. credit cards, TD Auto
Finance U.S., U.S. wealth business and the Bank's investment in TD
Ameritrade; and Wholesale Banking. The Bank's other activities are
grouped into the Corporate segment. The prior period segmented results
have been restated accordingly.
Effective December 27, 2013 and January 1, 2014, the results of the
acquired Aeroplan credit card portfolio and the results of the related
affinity relationship with Aimia (collectively, "Aeroplan"),
respectively, are reported in the Canadian Retail segment. Effective
March 27, 2013, the results of the acquisition of Epoch Investment
Partners, Inc. (Epoch) are reported in the U.S. Retail segment.
Effective March 13, 2013, results of the acquisition of the credit card
portfolio of Target Corporation and related program agreement (Target)
are reported in the U.S. Retail segment.
Results of each business segment reflect revenue, expenses, assets, and
liabilities generated by the businesses in that segment. The Bank
measures and evaluates the performance of each segment based on
adjusted results where applicable, and for those segments the Bank
indicates that the measure is adjusted. Net income for the operating
business segments is presented before any items of note not attributed
to the operating segments. For further details, see the "How the Bank
Reports" section, the "Business Focus" section in the MD&A of the
Bank's 2013 Annual Report, and Note 31 to the Bank's Consolidated
Financial Statements for the year ended October 31, 2013. For
information concerning the Bank's measure of adjusted return on average
common equity, which is a non-GAAP financial measure, see the "How We
Performed" section of this document.
Net interest income within Wholesale Banking is calculated on a taxable
equivalent basis (TEB), which means that the value of non-taxable or
tax-exempt income, including dividends, is adjusted to its equivalent
before-tax value. Using TEB allows the Bank to measure income from all
securities and loans consistently and makes for a more meaningful
comparison of net interest income with similar institutions. The TEB
increase to net interest income and provision for income taxes
reflected in Wholesale Banking results is reversed in the Corporate
segment. The TEB adjustment for the quarter was $115 million, compared
with $75 million in the first quarter last year, and $100 million in
the prior quarter.
|
|
|
|
TABLE 7: CANADIAN RETAIL
|
|
|
(millions of Canadian dollars, except as noted)
|
|
|
For the three months ended
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Net interest income
|
$
|
2,345
|
|
$
|
2,298
|
|
$
|
2,206
|
|
|
Non-interest income
|
|
2,284
|
|
|
2,299
|
|
|
2,164
|
|
|
Total revenue
|
|
4,629
|
|
|
4,597
|
|
|
4,370
|
|
|
Provision for credit losses
|
|
230
|
|
|
224
|
|
|
244
|
|
|
Insurance claims and related expenses
|
|
683
|
|
|
711
|
|
|
596
|
|
|
Non-interest expenses - reported
|
|
2,119
|
|
|
2,032
|
|
|
1,867
|
|
|
Non-interest expenses - adjusted
|
|
1,935
|
|
|
1,986
|
|
|
1,835
|
|
|
Net income - reported
|
|
1,204
|
|
|
1,237
|
|
|
1,252
|
|
|
Adjustments for items of note, net of income taxes1
|
|
|
|
|
|
|
|
|
|
|
Integration charges relating to the acquisition of the credit card
portfolio of MBNA Canada
|
|
21
|
|
|
14
|
|
|
24
|
|
|
Set-up, conversion and other one-time costs related to affinity
relationship with Aimia and
|
|
|
|
|
|
|
|
|
|
|
|
acquisition of Aeroplan Visa credit card accounts
|
|
115
|
|
|
20
|
|
|
-
|
|
|
Net income - adjusted
|
$
|
1,340
|
|
$
|
1,271
|
|
$
|
1,276
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes and ratios
|
|
|
|
|
|
|
|
|
|
|
Return on common equity - reported
|
|
39.4
|
%
|
|
43.8
|
%
|
|
47.8
|
%
|
|
Return on common equity - adjusted
|
|
43.9
|
%
|
|
45.0
|
%
|
|
48.7
|
%
|
|
Margin on average earning assets (including securitized assets)
|
|
2.94
|
%
|
|
2.92
|
%
|
|
2.91
|
%
|
|
Efficiency ratio - reported
|
|
45.8
|
%
|
|
44.2
|
%
|
|
42.7
|
%
|
|
Efficiency ratio - adjusted
|
|
41.8
|
%
|
|
43.2
|
%
|
|
42.0
|
%
|
|
Number of Canadian retail stores
|
|
1,178
|
|
|
1,179
|
|
|
1,166
|
|
|
Average number of full-time equivalent staff2
|
|
39,276
|
|
|
39,441
|
|
|
39,644
|
|
|
1
|
For explanations of items of note, see the "Non-GAAP Financial Measures
− Reconciliation of Adjusted to Reported Net Income" table in the "How
We Performed" section of this document.
|
|
2
|
In the first quarter of 2014, the Bank conformed to a standardized
definition of full-time equivalent staff across all segments. The
definition includes, among other things, hours for overtime and
contractors as part of its calculations. Prior period comparatives have
not been restated.
|
|
|
|
Quarterly comparison - Q1 2014 vs. Q1 2013
Canadian Retail net income for the quarter on a reported basis was
$1,204 million, a decrease of $48 million, or 4%, compared with the
first quarter last year. Adjusted net income for the quarter was $1,340
million, an increase of $64 million, or 5%, compared with the first
quarter last year. The increase in adjusted earnings was primarily due
to loan and deposit volume growth, higher wealth assets under
management, and favourable credit performance, partially offset by
higher weather-related insurance claims. The reported annualized return
on common equity for the quarter was 39.4%, while the adjusted
annualized return on common equity was 43.9%, compared with 47.8% and
48.7%, respectively, in the first quarter last year.
Revenue for the quarter was $4,629 million, an increase of $259 million,
or 6%, compared with the first quarter last year. Net interest income
increased $139 million, or 6%, driven primarily by good loan and
deposit volume growth and the inclusion of Aeroplan. Non-interest
income increased $120 million, or 6%, largely driven by wealth asset
growth, higher credit card transaction volumes, strong direct investing
trading volumes, and the inclusion of Aeroplan. Margin on average
earning assets was 2.94%, a 3 basis point (bps) increase primarily due
to the addition of Aeroplan.
The personal banking business generated solid average lending volume
growth of $10.7 billion, or 4%. Compared with the first quarter last
year, average real estate secured lending volume increased $8.3
billion, or 4%. Auto lending average volume increased $0.6 billion, or
4%, while all other personal lending average volumes increased $1.8
billion, or 6%, largely due to the inclusion of Aeroplan. Business
loans and acceptances average volume increased $5.6 billion, or 13%.
Average personal deposit volumes increased $3.2 billion, or 2%, due to
strong growth in core chequing and savings accounts, partially offset
by lower term deposit volume. Average business deposit volumes
increased $5.5 billion, or 8%.
Assets under administration increased $3 billion, or 1%, compared with
the first quarter last year, mainly driven by growth in new client
assets for the period and market appreciation, partially offset by the
sale of the TD Waterhouse Institutional Services business. Assets under
management increased $16 billion, or 8%, mainly driven by growth in new
client assets for the period and market appreciation.
PCL for the quarter was $230 million, a decrease of $14 million, or 6%,
compared with the first quarter last year. Personal banking PCL was
$219 million, a decrease of $17 million, or 7%, due primarily to better
credit performance and low bankruptcies, partially offset by the
inclusion of Aeroplan. Business banking PCL was $11 million, an
increase of $3 million, largely due to higher recoveries in the first
quarter last year. Annualized PCL as a percentage of credit volume was
0.28%, a decrease of 4 bps, compared with the first quarter last year.
Net impaired loans were $928 million, an increase of $14 million, or
2%, compared with the first quarter last year. Net impaired loans as a
percentage of total loans were 0.29%, compared with 0.30% as at January
31, 2013.
Insurance claims and related expenses for the quarter were $683 million,
an increase of $87 million, or 15%, compared with the first quarter
last year, primarily due to higher current year accident claims driven
by a more severe winter, increase in weather-related events, and volume
growth.
Reported non-interest expenses for the quarter were $2,119 million, an
increase of $252 million, or 13%, compared with the first quarter last
year. Adjusted non-interest expenses for the quarter were $1,935
million, an increase of $100 million, or 5%, compared with the first
quarter last year. The increase was driven by higher employee-related
costs including higher revenue based variable expenses in the wealth
business, inclusion of Aeroplan, and volume growth, partially offset by
initiatives to increase productivity.
The average full-time equivalent (FTE) staffing levels decreased by 368
compared with the first quarter last year, as increases due to
investment in front line sales staff was more than offset by
productivity gains. The reported efficiency ratio for the quarter
worsened to 45.8%, while the adjusted efficiency ratio improved to
41.8%, compared with 42.7% and 42.0%, respectively, in the first
quarter last year.
Quarterly comparison - Q1 2014 vs. Q4 2013
Canadian Retail net income for the quarter on a reported basis decreased
$33 million, or 3%, compared with the prior quarter. Adjusted net
income for the quarter increased $69 million, or 5%, compared with the
prior quarter. The increase in adjusted earnings was primarily due to
loan and deposit volume growth and higher wealth assets under
management, partially offset by lower insurance earnings. The reported
annualized return on common equity for the quarter was 39.4%, while the
adjusted annualized return on common equity was 43.9%, compared with
43.8% and 45.0%, respectively, in the prior quarter.
Revenue for the quarter increased $32 million, or 1%, compared with the
prior quarter. Net interest income increased $47 million, or 2%, driven
primarily by loan and deposit volume growth, and the inclusion of
Aeroplan. Non-interest income decreased $15 million, or 1%, as higher
fee-based revenue driven by wealth asset growth, and new customer
accounts was more than offset by lower fair value of insurance assets
due to the impact of higher interest rates. Margin on average earning
assets was 2.94%, a 2 bps increase primarily due to the addition of
Aeroplan.
The personal banking business generated good average lending volume
growth of $3.6 billion, or 1%, reflecting good real estate secured
lending growth and the inclusion of Aeroplan. Compared with the prior
quarter, average real estate secured lending volume increased $2.1
billion, or 1%. Auto lending average volume increased $0.1 billion, or
1%, while all other personal lending average volumes increased $1.4
billion, or 5%, largely due to the inclusion of Aeroplan. Business
loans and acceptances average volume increased $1.3 billion, or 3%.
Average personal deposit volumes increased $0.9 billion, or 1%, due to
good growth in core chequing and savings accounts, partially offset by
lower term deposit volume. Average business deposit volumes increased
$1.2 billion, or 2%.
Assets under administration decreased $21 billion, or 7%, compared with
the prior quarter, mainly driven by the sale of the TD Waterhouse
Institutional Services business, partially offset by market
appreciation and new client assets for the period. Assets under
management increased $9 billion, or 4%, mainly driven by growth in new
client assets for the period and market appreciation.
PCL for the quarter increased $6 million, or 3%, compared with the prior
quarter. Personal banking PCL decreased $4 million, or 2%, due
primarily to better credit performance and low bankruptcies, partially
offset by the inclusion of Aeroplan. Business banking PCL increased $10
million, largely due to higher recoveries in the prior quarter.
Annualized PCL as a percentage of credit volume was 0.28%, or
relatively flat, compared with the prior quarter. Net impaired loans
increased $46 million, or 5%, compared with the prior quarter. Net
impaired loans as a percentage of total loans were 0.29%, compared with
0.28% in the prior quarter.
Insurance claims and related expenses for the quarter decreased $28
million, or 4%, compared with the prior quarter, primarily due to
adverse development of prior years' claims recorded in the prior
quarter, partially offset by higher current year claims from a more
severe winter.
Reported non-interest expenses for the quarter increased $87 million, or
4%, compared with the prior quarter. Adjusted non-interest expenses for
the quarter decreased $51 million, or 3%, compared with the prior
quarter. The decrease was primarily due to the timing of business
investments and marketing initiatives in the prior quarter, partially
offset by the addition of Aeroplan.
The average full-time equivalent (FTE) staffing levels decreased by 165
compared with the prior quarter driven primarily by productivity gains.
The reported efficiency ratio for the quarter worsened to 45.8%, while
the adjusted efficiency ratio improved to 41.8%, compared with 44.2%
and 43.2%, respectively, in the prior quarter.
Business Outlook
We will continue to build on our legendary customer service and
convenience position across all channels and business lines. This will
help drive market share gains and deepen customer relationships. Over
the long term, we believe our focus on the customer and commitment to
invest across businesses positions us well for growth. Over the next
few quarters, we anticipate current levels of retail loan growth to
largely hold and margins to be relatively stable for the year. We
expect to continue to generate new wealth asset growth; however,
benefits from market appreciation in future quarters are subject to
capital markets performance. The Aeroplan acquisition will positively
contribute to earnings and overall margins. Credit loss rates are
likely to remain relatively stable; however recent low personal
bankruptcies are expected to start to normalize in the year. The
outlook for insurance claims and expenses will depend on the frequency
and severity of weather-related events. We will continue to focus on
increasing productivity and tightly managing expense growth to drive
positive operating leverage for the year.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 8: U.S. RETAIL1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of dollars, except as noted)
|
|
|
|
|
|
|
|
|
|
For the three months ended
|
|
|
|
|
|
Canadian dollars
|
|
|
|
|
|
|
U.S. dollars
|
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
2014
|
|
|
2013
|
|
|
2013
|
|
|
Net interest income
|
$
|
1,477
|
|
$
|
1,428
|
|
$
|
1,102
|
|
$
|
1,381
|
|
$
|
1,381
|
|
$
|
1,110
|
|
|
Non-interest income
|
|
592
|
|
|
536
|
|
|
451
|
|
|
554
|
|
|
515
|
|
|
454
|
|
|
Total revenue
|
|
2,069
|
|
|
1,964
|
|
|
1,553
|
|
|
1,935
|
|
|
1,896
|
|
|
1,564
|
|
|
Provision for credit losses - loans
|
|
236
|
|
|
211
|
|
|
151
|
|
|
221
|
|
|
204
|
|
|
151
|
|
|
Provision for (recovery of) credit losses - debt
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
securities classified as loans
|
|
2
|
|
|
(27)
|
|
|
3
|
|
|
2
|
|
|
(26)
|
|
|
3
|
|
|
Provision for (recovery of) credit losses - acquired
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
credit-impaired loans2
|
|
-
|
|
|
(1)
|
|
|
22
|
|
|
-
|
|
|
(1)
|
|
|
23
|
|
|
Provision for credit losses
|
|
238
|
|
|
183
|
|
|
176
|
|
|
223
|
|
|
177
|
|
|
177
|
|
|
Non-interest expenses - reported
|
|
1,312
|
|
|
1,344
|
|
|
1,025
|
|
|
1,225
|
|
|
1,297
|
|
|
1,033
|
|
|
Non-interest expenses - adjusted
|
|
1,312
|
|
|
1,315
|
|
|
928
|
|
|
1,225
|
|
|
1,269
|
|
|
935
|
|
|
U.S. Retail Bank net income - reported3
|
|
424
|
|
|
371
|
|
|
308
|
|
|
398
|
|
|
357
|
|
|
309
|
|
|
Adjustments for items of note4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Litigation and litigation-related
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
charge/reserve
|
|
-
|
|
|
30
|
|
|
70
|
|
|
-
|
|
|
29
|
|
|
71
|
|
|
U.S. Retail Bank net income - adjusted3
|
|
424
|
|
|
401
|
|
|
378
|
|
|
398
|
|
|
386
|
|
|
380
|
|
|
Equity in net income of an investment in associate,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
net of income taxes
|
|
68
|
|
|
77
|
|
|
47
|
|
|
65
|
|
|
73
|
|
|
48
|
|
|
Net income - adjusted
|
|
492
|
|
|
478
|
|
|
425
|
|
|
463
|
|
|
459
|
|
|
428
|
|
|
Net income - reported
|
$
|
492
|
|
$
|
448
|
|
$
|
355
|
|
$
|
463
|
|
$
|
430
|
|
$
|
357
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes and ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common equity - reported
|
|
8.0
|
%
|
|
7.9
|
%
|
|
6.7
|
%
|
|
8.0
|
%
|
|
7.9
|
%
|
|
6.7
|
%
|
|
Return on common equity - adjusted
|
|
8.0
|
%
|
|
8.4
|
%
|
|
8.0
|
%
|
|
8.0
|
%
|
|
8.4
|
%
|
|
8.0
|
%
|
|
Margin on average earning assets (TEB)5
|
|
3.83
|
%
|
|
3.89
|
%
|
|
3.28
|
%
|
|
3.83
|
%
|
|
3.89
|
%
|
|
3.28
|
%
|
|
Efficiency ratio - reported
|
|
63.4
|
%
|
|
68.4
|
%
|
|
66.0
|
%
|
|
63.4
|
%
|
|
68.4
|
%
|
|
66.0
|
%
|
|
Efficiency ratio - adjusted
|
|
63.4
|
%
|
|
67.0
|
%
|
|
59.8
|
%
|
|
63.4
|
%
|
|
67.0
|
%
|
|
59.8
|
%
|
|
Number of U.S. retail stores
|
|
1,288
|
|
|
1,317
|
|
|
1,325
|
|
|
1,288
|
|
|
1,317
|
|
|
1,325
|
|
|
Average number of full-time equivalent staff6
|
|
26,108
|
|
|
25,225
|
|
|
25,526
|
|
|
26,108
|
|
|
25,225
|
|
|
25,526
|
|
|
1
|
Revenue and expenses related to Target are reported on a gross basis on
the Consolidated Statement of Income and non-interest expenses include
our expenses related to the business, and amounts due to Target
Corporation under the credit card program agreement.
|
|
2
|
Includes all Federal Deposit Insurance Corporation (FDIC) covered loans
and other acquired credit-impaired loans.
|
|
3
|
Results exclude the impact related to TD Ameritrade.
|
|
4
|
For explanations of items of note, see the "Non-GAAP Financial Measures
− Reconciliation of Adjusted to Reported Net Income" table in the "How
We Performed" section of this document.
|
|
5
|
Margin on average earning assets excludes the impact related to the TD
Ameritrade insured deposit accounts (IDA).
|
|
6
|
In the first quarter of 2014, the Bank conformed to a standardized
definition of full-time equivalent staff across all segments. The
definition includes, among other things, hours for overtime and
contractors as part of its calculations. Prior period comparatives have
not been restated.
|
|
|
|
Quarterly comparison - Q1 2014 vs. Q1 2013
U.S. Retail reported net income for the quarter was $492 million, an
increase of $137 million, or 39%, compared with the first quarter last
year. The increase in reported net income was primarily due to the
Target and Epoch acquisitions, strong loan and deposit growth and lower
litigation expenses, partially offset by lower net interest margins
(excluding Target), and lower securities gains. TD Ameritrade
contributed $68 million in net income, an increase of 45%, driven by
higher transaction-based and asset-based revenue. Reported net income
also benefited from a strengthening of the U.S. dollar.
Adjusted net income for the quarter was US$463 million, an increase of
8% compared with the first quarter last year. The increase in adjusted
net income was primarily due to strong loan and deposit growth
including incremental earnings from TD Ameritrade and the Target and
Epoch acquisitions, partially offset by lower securities gains, lower
net interest margins (excluding Target), and increased expenses to
support growth.
U.S. Retail revenue is derived from personal banking, business banking,
investments, auto lending, credit cards, and wealth management. Revenue
for the quarter was US$1,935 million, an increase of US$371 million, or
24%, compared with the first quarter last year primarily due to the
acquisitions of Target and Epoch, and strong organic loan and deposit
growth, partially offset by lower net interest margins and lower gains
on sales of securities. Excluding Target, average loans increased US$9
billion, or 9%, compared with the first quarter last year, with a 10%
increase in personal loans and a 9% increase in business loans. Average
deposits increased US$16 billion, or 9%, compared with the first
quarter last year driven by 7% growth in personal deposit volume, 10%
growth in business deposit volume, and 11% growth in TD Ameritrade
deposit volume. Margin on average earning assets was 3.83%, a 55 bps
increase compared with the first quarter last year due to the impact of
Target.
PCL for the quarter was US$223 million, an increase of US$46 million, or
26%, compared with the first quarter last year primarily due to the
Target acquisition, partially offset by improvements in asset quality
of business banking products and acquired credit-impaired loans.
Personal banking PCL was US$233 million, an increase of US$121 million,
or 108%, compared with the first quarter last year primarily due to
provisions for Target and increased provisions in residential mortgages
and home equity products. Business banking PCL was a recovery of US$14
million, a decrease of US$76 million, or 123%, compared with the first
quarter last year reflecting continued improvements in credit quality
of commercial loans. Annualized PCL as a percentage of credit volume
for loans excluding debt securities classified as loans was 0.82%, an
increase of 8 bps, compared with the first quarter last year due to
higher loss ratios on the Target portfolio. Net impaired loans,
excluding acquired credit-impaired loans and debt securities classified
as loans, as a percentage of total loans were 1.2% as at January 31,
2014, flat compared with January 31, 2013. Net impaired debt securities
classified as loans were US$946 million, a decrease of US$354 million,
or 27%, compared with the first quarter last year primarily due to
securities sales.
Non-interest expenses for the quarter were US$1,225 million, an increase
of US$192 million, or 19%, on a reported basis and an increase of
US$290 million, or 31%, on an adjusted basis, compared with the first
quarter last year primarily due to increased expenses related to the
Target acquisition, the addition of Epoch, costs to support growth and
severance.
The reported efficiency ratio for the quarter improved to 63.4%,
compared with 66.0% in the first quarter last year, while the adjusted
efficiency ratio worsened to 63.4%, compared with 59.8% in the first
quarter last year, primarily driven by strong organic growth.
Quarterly comparison - Q1 2014 vs. Q4 2013
U.S. Retail reported net income for the quarter was $492 million, an
increase of $44 million, or 10%, compared with the prior quarter. The
increase in reported net income was due primarily to lower litigation
and non-interest expenses, partially offset by higher PCL on retail
loans and debt securities classified as loans. TD Ameritrade
contributed $68 million in net income, a decrease of 12% due to lower
investment gains and the timing of taxes on a special dividend,
partially offset by increased transaction-based and asset-based
revenue.
Adjusted net income for the quarter was US$463 million, an increase of
US$4 million, or 1%, compared with the prior quarter. The increase in
adjusted net income was due primarily to higher non-interest income and
lower non-interest expense, partially offset by higher PCL on retail
loans and debt securities classified as loans and decreased earnings
from TD Ameritrade.
Revenue for the quarter increased US$39 million, or 2%, compared with
the prior quarter primarily due to higher non-interest income. Net
interest income was flat as portfolio growth and higher yields on
earning assets were offset by lower accretion related to the acquired
portfolios recorded in the first quarter of 2014. Excluding Target,
average loans increased US$2 billion, or 2%, compared with the prior
quarter, with less than a 1% increase in personal loans and a 3%
increase in business loans. Average deposits increased US$3 billion, or
1%, compared with the prior quarter. Margin on average earning assets
was 3.83%, a 6 bps decrease compared with the prior quarter due to
lower accretion on acquired portfolios.
PCL for the quarter increased US$46 million, or 26%, compared with the
prior quarter as higher provisions on personal loans and debt
securities classified as loans were partially offset by improvements in
asset quality of business banking products. Personal banking PCL
increased US$60 million, or 34%, from the prior quarter primarily due
to higher provisions on residential mortgages, home equity and credit
card products, and higher net charge-offs. Business banking PCL
decreased US$40 million, or 160%, from the prior quarter primarily due
to improvements in asset quality. Annualized adjusted PCL as a
percentage of credit volume for loans excluding debt securities
classified as loans was 0.82%, an increase of 5 bps, compared with the
prior quarter. Net impaired loans, excluding acquired credit-impaired
loans and debt securities classified as loans, as a percentage of total
loans were 1.2% as at January 31, 2014, flat compared with October 31,
2013. Net impaired debt securities classified as loans were US$946
million, a decrease of US$39 million, or 4%, compared with the prior
quarter.
Reported non-interest expenses for the quarter decreased US$72 million,
or 6%, compared with the prior quarter. Adjusted non-interest expenses
decreased US$44 million, or 3%, compared with the prior quarter
primarily due to the timing of planned initiatives in the prior
quarter.
The reported efficiency ratio for the quarter improved to 63.4%,
compared with 68.4% in the fourth quarter last year, while the adjusted
efficiency ratio improved to 63.4%, compared with 67.0% in the prior
quarter mainly driven by lower expenses.
Business Outlook
For 2014, our expectation is continued modest but variable economic
growth and continued low short term interest rates; longer term rates
are expected to be higher relative to 2013, but still low relative to
historical levels. We expect competition for loans to remain intense,
credit will remain benign, and the regulatory environment will pose
challenges. Earnings are expected to be characterized by stable to
improving margins from today's level as a result of higher long term
interest rates, offset by lower levels of security gains and higher
provisions for credit losses. We expect to continue to outgrow our
competition, but loan growth will likely slow, largely due to lower
levels of mortgage refinancing. We will continue to invest in growth
and regulatory compliance but mitigating the rate of growth in expenses
will remain a focus. We expect earnings to be supported by a stronger
U.S. dollar.
|
|
|
|
|
|
|
|
|
|
|
|
|
TABLE 9: WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars, except as noted)
|
|
|
For the three months ended
|
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Net interest income (TEB)
|
|
$
|
551
|
|
$
|
509
|
|
$
|
483
|
|
|
Non-interest income
|
|
|
167
|
|
|
94
|
|
|
117
|
|
|
Total revenue
|
|
|
718
|
|
|
603
|
|
|
600
|
|
|
Provision for credit losses
|
|
|
-
|
|
|
5
|
|
|
(5)
|
|
|
Non-interest expenses
|
|
|
411
|
|
|
423
|
|
|
393
|
|
|
Net income
|
|
$
|
230
|
|
$
|
122
|
|
$
|
160
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes and ratios
|
|
|
|
|
|
|
|
|
|
|
|
Trading-related revenue
|
|
$
|
408
|
|
$
|
343
|
|
$
|
292
|
|
|
Risk-weighted assets (billions of dollars)1
|
|
|
56
|
|
|
47
|
|
|
50
|
|
|
Return on common equity
|
|
|
20.6
|
%
|
|
12.1
|
%
|
|
15.1
|
%
|
|
Efficiency ratio
|
|
|
57.2
|
%
|
|
70.1
|
%
|
|
65.5
|
%
|
|
Average number of full-time equivalent staff2
|
|
|
3,544
|
|
|
3,535
|
|
|
3,470
|
|
|
1
|
Prior to the first quarter of 2014, the amounts have not been adjusted
to reflect the impact of the New IFRS Standards and Amendments.
|
|
2
|
In the first quarter of 2014, the Bank conformed to a standardized
definition of full-time equivalent staff across all segments. The
definition includes, among other things, hours for overtime and
contractors as part of its calculations. Prior period comparatives have
not been restated.
|
|
|
|
Quarterly comparison - Q1 2014 vs. Q1 2013
Wholesale Banking net income for the quarter was $230 million, an
increase of $70 million, or 44%, compared with the first quarter last
year. The increase in earnings was primarily due to higher revenue,
partially offset by higher taxes and non-interest expenses. The
annualized return on common equity for the quarter was 20.6%, compared
with 15.1% in the first quarter last year.
Wholesale Banking revenue is derived primarily from capital markets
services and corporate lending. The capital markets businesses generate
revenue from advisory, underwriting, trading, facilitation, and trade
execution services. Revenue for the quarter was $718 million, an
increase of $118 million, or 20%, compared with the first quarter last
year. The increase in revenue was primarily related to higher
trading-related revenue, advisory and underwriting fees that benefited
from improved volumes and strong underwriting activity.
PCL for the quarter was nil as the accrual cost of credit protection was
completely offset by the recovery of a previously recorded provision in
the investment portfolio, compared with a $5 million net recovery in
the first quarter of last year.
Non-interest expenses for the quarter were $411 million, an increase of
$18 million, or 5%, compared with the first quarter last year, due to
higher variable compensation commensurate with higher revenue.
Risk-weighted assets were $56 billion as at January 31, 2014, an
increase of $6 billion, or 12%, compared with January 31, 2013. The
increase was primarily due to the inclusion of the Credit Valuation
Adjustment (CVA) capital charge.
Quarterly comparison - Q1 2014 vs. Q4 2013
Wholesale Banking net income for the quarter increased by $108 million,
or 89%, compared with the prior quarter. The increase was largely due
to higher trading-related revenue and lower non-interest expenses. The
annualized return on common equity for the quarter was 20.6%, compared
with 12.1% in the prior quarter.
Revenue for the quarter increased $115 million, or 19%, compared with
the prior quarter. The increase in revenue was primarily due to higher
trading-related revenue, increased gains on securities in the
investment portfolio, and higher fee-based revenue across all
businesses. Revenues benefited from improved volumes and strong
underwriting activity.
PCL for the quarter was nil compared with $5 million in the prior
quarter that was primarily related to the accrual cost of credit
protection.
Non-interest expenses for the quarter decreased $12 million, or 3%,
compared with the previous quarter due to lower litigation expenses,
partially offset by higher variable compensation commensurate with
revenue.
Risk-weighted assets as at January 31, 2014 increased $9 billion, or
19%, compared with October 31, 2013. The increase was primarily due to
the inclusion of the CVA capital charge.
Business Outlook
We are encouraged by the improvement in capital markets and the economy,
but a combination of global fiscal challenges, slower commodity markets
and the impact of regulatory reform will affect trading conditions in
the medium term. Uncertainty over the pace of the Federal Reserve's
tapering of asset purchases and sustained pressure on the Canadian
dollar continues to create volatility in the markets. Although the low
interest rate environment is likely to persist during 2014, we expect
continuing improvements in client-driven volumes and capital market
activities, as compared to market conditions in 2013. Our diversified,
integrated business model will continue to deliver solid results and
grow our franchise. We continue to stay focused on serving our clients,
being a valued counterparty, deepening our client relationships,
managing our risks and reducing expenses in 2014.
|
|
|
|
|
|
|
|
|
|
|
TABLE 10: CORPORATE
|
|
|
|
|
|
|
|
|
(millions of Canadian dollars)
|
For the three months ended
|
|
|
|
January 31
|
|
October 31
|
|
January 31
|
|
|
|
2014
|
|
2013
|
|
2013
|
|
|
Net income (loss) - reported
|
$
|
116
|
|
$
|
(191)
|
|
$
|
17
|
|
|
Adjustments for items of note: Decrease (increase) in net income1
|
|
|
|
|
|
|
|
|
|
|
Amortization of intangibles
|
|
61
|
|
|
59
|
|
|
56
|
|
|
Fair value of derivatives hedging the reclassified available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
securities portfolio
|
|
(19)
|
|
|
15
|
|
|
(24)
|
|
|
Gain on sale of TD Waterhouse Institutional Services
|
|
(196)
|
|
|
-
|
|
|
-
|
|
|
Impact of Alberta flood on the loan portfolio
|
|
-
|
|
|
(29)
|
|
|
-
|
|
|
Restructuring charges
|
|
-
|
|
|
90
|
|
|
-
|
|
|
Total adjustments for items of note
|
|
(154)
|
|
|
135
|
|
|
32
|
|
|
Net income (loss) - adjusted
|
$
|
(38)
|
|
$
|
(56)
|
|
$
|
49
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Decomposition of items included in net income (loss) - adjusted
|
|
|
|
|
|
|
|
|
|
|
Net corporate expenses
|
$
|
(165)
|
|
$
|
(142)
|
|
$
|
(136)
|
|
|
Other
|
|
100
|
|
|
59
|
|
|
159
|
|
|
Non-controlling interests
|
|
27
|
|
|
27
|
|
|
26
|
|
|
Net income (loss) - adjusted
|
$
|
(38)
|
|
$
|
(56)
|
|
$
|
49
|
|
|
1
|
For explanations of items of note, see the "Non-GAAP Financial Measures
- Reconciliation of Adjusted to Reported Net Income" table in the "How
We Performed" section of this document.
|
|
|
|
Quarterly comparison - Q1 2014 vs. Q1 2013
Corporate segment's reported net income for the quarter was $116
million, compared with reported net income of $17 million in the first
quarter last year. Adjusted net loss was $38 million, compared with
adjusted net income of $49 million in the first quarter last year. The
decline in adjusted net income reflected a lower contribution from
Other items which included lower gains from treasury and other hedging
activities, prior year positive tax items and the prior year reduction
of allowance for incurred but not identified credit losses related to
the Canadian loan portfolio, partially offset by the gain on sale of TD
Ameritrade shares this year. Net corporate expenses increased as a
result of higher project and initiative costs.
Quarterly comparison - Q1 2014 vs. Q4 2013
Corporate segment's reported net income for the quarter was $116
million, compared with a reported net loss of $191 million in the prior
quarter. Adjusted net loss was $38 million, compared with an adjusted
net loss of $56 million in the prior quarter. The decline in adjusted
net loss was due to the favourable impact of Other items, partially
offset by higher net corporate expenses. Other items were favourable
largely due to the gain on sale of TD Ameritrade shares and gains from
treasury and other hedging activities, partially offset by positive tax
items in the prior quarter. Net corporate expenses increased as a
result of higher project and initiative costs.
SHAREHOLDER AND INVESTOR INFORMATION
Shareholder Services
|
If you:
|
And your inquiry relates to:
|
Please contact:
|
Are a registered shareholder (your name
appears on your TD share certificate)
|
Missing dividends, lost share certificates, estate
questions, address changes to the share register,
dividend bank account changes, the dividend
reinvestment plan, eliminating duplicate mailings of
shareholder materials or stopping (and resuming)
receiving annual and quarterly reports
|
Transfer Agent:
CST Trust Company
P.O. Box 700, Station B
Montréal, Québec H3B 3K3
1-800-387-0825 (Canada and U.S. only)
or 416-682-3860
Facsimile: 1-888-249-6189
inquiries@canstockta.com or www.canstockta.com
|
Hold your TD shares through the
Direct Registration System
in the United States
|
Missing dividends, lost share certificates, estate
questions, address changes to the share register,
eliminating duplicate mailings of shareholder materials
or stopping (and resuming) receiving annual and
quarterly reports
|
Co-Transfer Agent and Registrar
Computershare
P.O. Box 30170
College Station, TX 77842-3170
or
Computershare
211 Quality Circle, Suite 210
College Station, TX 77845
1-866-233-4836
TDD for hearing impaired: 1-800-231-5469
Shareholders outside of U.S.: 201-680-6578
TDD shareholders outside of U.S: 201-680-6610
www.computershare.com
|
Beneficially own TD shares that are held in
the name of an intermediary, such as a bank,
a trust company, a securities broker or other
nominee
|
Your TD shares, including questions regarding the
dividend reinvestment plan and mailings of shareholder
materials
|
Your intermediary
|
For all other shareholder inquiries, please contact TD Shareholder
Relations at 416-944-6367 or 1-866-756-8936 or email tdshinfo@td.com. Please note that by leaving us an e-mail or voicemail message you are
providing your consent for us to forward your inquiry to the
appropriate party for response.
General Information
Contact Corporate & Public Affairs:
416-982-8578
Products and services: Contact TD Canada Trust, 24 hours a day, seven
days a week: 1-866-567-8888
French: 1-866-233-2323
Cantonese/Mandarin: 1-800-328-3698
Telephone device for the hearing impaired (TTY): 1-800-361-1180
Internet website: http://www.td.com
Internet e-mail: customer.service@td.com
Access to Quarterly Results Materials
Interested investors, the media and others may view this first quarter
earnings news release, results slides, supplementary financial
information, and the Report to Shareholders on the TD website at www.td.com/investor/.
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario
on February 27, 2014. The call will be webcast live through TD's
website at 3 p.m. ET. The call and webcast will feature presentations
by TD executives on the Bank's financial results for the first quarter,
discussions of related disclosures, and will be followed by a
question-and-answer period with analysts. The presentation material
referenced during the call will be available on the TD website at www.td.com/investor/qr_2014.jsp on February 27, 2014, by approximately 12 p.m. ET. A listen-only
telephone line is available at 416-644-3414 or 1-800-814-4859 (toll
free).
The webcast and presentations will be archived at www.td.com/investor/qr_2014.jsp. Replay of the teleconference will be available from 6 p.m. ET on
February 27, 2014, until March 28, 2014, by calling 416-640-1917 or
1-877-289-8525 (toll free). The passcode is 4667570, followed by the
pound key.
Annual Meeting
Thursday, April 3, 2014
Hyatt Regency Calgary
Calgary, Alberta
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in
North America by branches and serves over 22 million customers in three
key businesses operating in a number of locations in financial centres
around the globe: Canadian Retail, including TD Canada Trust, TD Auto
Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD
Insurance; U.S. Retail, including TD Bank, America's Most Convenient
Bank, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in TD
Ameritrade; and Wholesale Banking, including TD Securities. TD also
ranks among the world's leading online financial services firms, with
approximately 8 million active online and mobile customers. TD had $909
billion in assets on January 31, 2014. The Toronto-Dominion Bank trades
under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group
