TD US Long Term Treasury Bond ETF · TSX:TULB
TD US Long Term Treasury Bond ETF — TD Bank Group — Q1 2011 Earnings Presentation
34 slides from TD US Long Term Treasury Bond ETF's earnings presentation, Mar 3, 2011
Slide 1: TD Bank Group Q1 2011 Investor Presentation
TD Bank Group Q1 2011 Investor Presentation Thursday March 3rd, 2011
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements From time to time, the Bank makes written and/or oral forward-looking statements, including in this presentation, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission, and in other communications. In addition, represent
Slide 3: Strategic Overview
Strategic Overview 1. Record adjusted earnings1 of over $1.5 billion 2. Retail2 franchise delivered record $1.4 billion in adjusted earnings 3. Strong performance in Wholesale Banking 4. Dividend increase of $0.05 per share payable in April 2011 1. The Bank’s financial results/earnings releases prep
Slide 4: Q1 2011 Highlights
Q1 2011 Highlights Net income $MM Q1/10 Q4/10 Q1/11 QoQ YoY 1 Retail 1,091 1,207 1,419 18% 30% Wholesale 372 216 237 10% -36% Corporate (adjusted) (33) (163) (68) 58% -106% 2 Adjusted net income $ 1,430 $ 1,260 $ 1,588 26% 11% Reported EPS (diluted) $ 1.44 $ 1.07 $ 1.69 58% 17% Adjusted EPS (diluted
Slide 5: Q1 2011 Earnings: Items of Note
Q1 2011 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $1,541 $1.69 Pre Tax After Tax Items of note EPS (MM) (MM) 1 1 Amortization of intangibles $170 $112 $0.13 Change in fair value of derivatives hedging $(99) $(81) $(0.09) the reclassified portfolio Integration and restructu
Slide 6: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking P&L $MM Q1/10 Q4/10 Q1/11 QoQ YoY Revenue $ 2,539 $ 2,668 $ 2,664 0% 5% PCL 315 239 213 -11% -32% Expenses 1,194 1,331 1,212 -9% 2% Net Income $ 720 $ 773 $ 905 17% 26% Efficiency ratio 47.0% 49.9% 45.5% (440)bps (150)bps 1 NIM 2.93% 2.91% 2.82% (9)bp (11)bps •
Slide 7: Wealth Management
Wealth Management P&L $MM Q1/10 Q4/10 Q1/11 QoQ YoY Revenue $ 590 $ 639 $ 687 8% 16% Expenses 446 468 501 7% 12% Net Income (Global Wealth) $ 101 $ 118 $ 133 13% 32% 1 Equity in NI of TD AMTD 43 33 48 45% 12% Net Income $ 144 $ 151 $ 181 20% 26% Efficiency ratio 75.6% 73.2% 72.9% (30)bps (270)bps 2
Slide 8: U.S. Personal & Commercial Banking
U.S. Personal & Commercial Banking P&L $MM (U.S. dollars) (adjusted, where applicable) Q1/10 Q4/10 Q1/11 QoQ YoY Revenue $ 1,087 $ 1,183 $ 1,387 17% 28% PCL 191 142 202 42% 6% 1 Expenses 641 714 784 10% 22% 1 Net Income $ 216 $ 275 $ 332 21% 54% 1 Net Income (C$) $ 227 $ 283 $ 333 18% 47% 1 Efficien
Slide 9: Wholesale Banking
Wholesale Banking P&L $MM (adjusted, where applicable) Q1/10 Q4/10 Q1/11 QoQ YoY Revenue $ 913 $ 677 $ 727 7% -20% PCL 8 23 6 -74% -25% Expenses 376 324 391 21% 4% 1 Net Income $ 372 $ 216 $ 237 10% -36% • A strong quarter with solid results across all business lines • Franchise strategy is deliveri
Slide 10: Corporate Segment
Corporate Segment Q1 Corporate segment adjusted loss of $68 million Segment transfer of $41 million of loss after tax to operating businesses in Q1 – refer to slide 16 in appendix for more details Excluding segment transfers, YoY increase in loss largely due to certain favourable items in Q1 l
Slide 11: Basel III
Basel III Key Investor Questions and TD Position Key Areas of Focus TD Positioning Higher common equity deductions mainly from substantial investments – What are the Key Impacts of estimated impact ~$5-6B Basel III? Increased capital requirement due to higher RWA ($55-65B) – estimated impact ~$4
Slide 12: Credit Portfolio Highlights
Credit Portfolio Highlights Canadian Personal Continued solid credit performance Canadian Commercial and Wholesale Strong credit performance is expected to continue U.S. Personal Default rate was stable and loss rate improved High quality loan growth in the residential mortgage portfol
Slide 13: Appendix
ID Appendix
Slide 14: Q1 2011 Earnings: Items of Note
Q1 2011 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $1,541 $1.69 Revenue/ Pre Tax After Tax Items of note1 EPS Segment Expense Line (MM) (MM) Item3 Amortization of intangibles $1702 $1122 $0.13 Corporate pg 13, line 15 Change in fair value of derivatives hedging $(99) $(81)
Slide 15: Tier 1 Capital Ratio
Tier 1 Capital Ratio 12.7% Highlights 12.5% 12.0% 12.2% Strong capital position 11.5% Continued organic growth in capital Well-positioned for evolving regulatory environment Lower-risk, franchise wholesale dealer More than 1/3 of total assets in low or no-risk assets About 80% of Tier 1
Slide 16: Impact of Segment Transfers in Q1'11
Impact of Segment Transfers in Q1’11 Effective the first quarter of 2011, operating results and associated loans for the U.S. credit cards business were transferred from Canadian Personal and Commercial Banking to U.S. Personal and Commercial Banking for segment reporting purposes. In addition, the
Slide 17: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Net interest margin % Notes Net interest margin on NIM on average earning assets average earning assets down QoQ Excluding segment transfers, 2.93% 2.92% 2.92% NIM is down 3 bps YoY 2.91% 2.82% NIM on loans 1.89% 1.92% 1.90% 1.87% 1.80% 1.46% 1.42% 1.49% 1.
Slide 18: Global Wealth
Global Wealth Revenue $MM Notes $687 Revenue $687 million: $639 $616 $590 $612 $104 Up 16% from Q1/10 and 8% $79 $93 $97 compared to Q4/10 NII $66 YoY Increase driven by: $170 $139 Higher client margin loans and Transaction $152 $155 $143 deposit balances with improved NIM Higher transacti
Slide 19: Global Wealth
Global Wealth Performance Metrics AUA1 ($B) AUM2 ($B) $225 $242 $183 $186 $200 $214 $211 $172 $175 $174 $96 $96 $97 $101 $102 Institutional Retail $76 $79 $78 $82 $84 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11 Mutual Funds AUM2 ($B) $60 $59 $57 $56 $54 Q1/10 Q2/10 Q3/10 Q4/10 Q1/11
Slide 20: TD Ameritrade
TD Ameritrade TD Bank Group’s Share of Highlights TD Ameritrade’s Net Income1 TD’s share of TD Ameritrade’s US$MM net income: C$48 million in Q1/11 $60 $54 TD Ameritrade’s net income $48 US$145 million in Q1/11 $41 Average trades per day: 372,000; up 17% QoQ and $32 down 2% YoY Client assets
Slide 21: Accounting for Acquired Assets
Accounting for Acquired Assets Accounting for acquired portfolios can give rise to different P&L treatment and different impaired loan reporting than loans originated by the Bank There are two noticeable impacts from the accounting: It creates swings in both NII and PCL as expectations of cash
Slide 22: U.S. Personal & Commercial Banking: Deposit Growth
U.S. Personal & Commercial Banking: Deposit Growth Average Deposits 22% Highlights 22% (US$ billions) Growth Growth YoY YoY Personal deposit growth from maturing stores, high-rate $143 savings promotion and $134 acquisitions $129 $124 $117 46 Excluding impact of $43 $44 acquisitions and TD Ameri
Slide 23: U.S. Personal & Commercial Banking: Loan Growth
U.S. Personal & Commercial Banking: Loan Growth Average Loans 25% Highlights 25% (US$ billions) Growth Growth YoY YoY Excluding impact of acquisitions and segment transfers, total loans were up $67 9% YoY $60 $54 $57 Growth in high-quality $53 residential mortgages continued $42 $36 $38 $34 $34
Slide 24: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q4/10 Q1/11 Canadian Personal & Commercial Portfolio $ 182.9 $ 187.8 Personal1 $ 151.1 $ 154.7 Residential Mortgages 60.6 64.2 2/3 insured Home Equity Lines of Credit (HELOC) 59.0 58.8 Unsecured Lines of Credit 9.2 9.1 Credi
Slide 25: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights Gross Impaired Loan $1,062 Formations decreased $23 / 12 bps $286MM or 27% YoY $918 Continued stability in Canadian $852 $835 P&C formation rates $776 $526 / 92 bps U.S. P&C formations $452 / 75 bps decreas
Slide 26: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights Gross Impaired Loans remained $2,315 $2,218 $2,177 $2,253 $2,258 stable while the impaired rate $206 / 108 bps $84 / 46 bps $69 / 39 bps continued to decline $190 / 100 bps $91 / 51 bps Gross Impaired Loans in Canadian P&C
Slide 27: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio PCL1: $MM and Ratios2 Highlights PCL rate was down 28 bps YoY due to improving economic $507 environment $4 / NM $417 PCL in Canadian P&C was down $2 / NM $390 4 bps QoQ driven by a reduction $1 / NM $340 $209 / 147 bps $348 in Commercial PCL $1 / N
Slide 28: Canadian Personal Banking
Canadian Personal Banking Q1/11 Highlights Gross Loans GIL/ GIL Specific PCL1 Canadian Personal Banking ($B) Loans ($MM) ($MM) Continued solid credit Residential Mortgages 64 0.49% 317 1 performance QoQ Home Equity Lines of Credit (HELOC) 59 0.24% 142 4 Unsecured Lines of Credit 9 0.55% 50 51 RE
Slide 29: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q1/11 Highlights Canadian Commercial and Gross Specific GIL Loans/BAs PCL1 Wholesale Banking ($B) ($MM) ($MM) Asset quality remains strong Commercial Banking2 33 142 11 PCL declined $30MM QoQ Wholesale 18 69 (1) and continues to outperform Total Canadian
Slide 30: U.S. Personal Banking
U.S. Personal Banking Q1/11 Specific Highlights 1 Gross Loans GIL/ GIL U.S. Personal Banking PCL2 ($B) Loans ($MM) PCL decreased $19MM ($MM) Residential Mortgages 11 1.59% 166 (1) (US$17MM) or 30% QoQ due Home Equity Lines of Credit (HELOC)3 9 0.98% 90 9 to lower loss rates in the Real Estate Secu
Slide 31: U.S. Commercial Banking
U.S. Commercial Banking Commercial Real Estate (CRE) Q1/11 U.S. Commercial Banking1 Gross Loans/BAs GIL Specific PCL2 Highlights ($MM) ($MM) ($B) Gross Impaired Loans in U.S. Commercial Real Estate (CRE) 14 671 27 Commercial Banking were flat Non-residential Real Estate 10 305 19 on a USD basis ov
Slide 32: U.S. Commercial Banking
U.S. Commercial Banking Commercial & Industrial (C&I) Q1/11 U.S. Commercial Banking1 Gross Loans/BAs GIL Specific PCL2 Highlights ($MM) ($B) ($MM) Commercial Real Estate (CRE) 14 671 27 Gross Impaired Loans in the Commercial & Industrial Non-residential Real Estate 10 305 19 portfolio declined $42
Slide 33: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Website: Best investment community meetings www.td.com/investor Best investor relations by a CFO: Large cap Best investor relations by a CEO: Large cap Grand prix for best overall investor relations: Large cap Best
Slide 34: TD Bank Group
TD Bank Group Q1 2011 Investor Presentation Thursday March 3rd, 2011