Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — TD Bank Group — Q2 2016 Earnings Presentation

36 slides from Toronto-dominion Bank's earnings presentation, 2016

1. Slide 1: TD Bank Group Investor Presentation

   TD Bank Group Investor Presentation Q2 2016

2. Slide 2: Caution regarding forward-looking statements

   Caution regarding forward-looking statements From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and

3. Slide 3: TD Bank Group – Key Themes

   TD Bank Group – Key Themes 6th largest bank 1 Top 10 North American Bank by Total Assets1 7th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Targeting 7-10% 4

4. Slide 4: TD Snapshot

   TD Snapshot Our Businesses Canadian Retail  Personal banking, credit cards and auto finance  Small business and commercial banking  Direct investing, advice-based wealth businesses, and asset management  Property, casualty, life and health insurance Q2 20161 Canadian U.S. U.S. Retail (C$ except

5. Slide 5: TD Strategy

   TD Strategy To be the Better Bank North America  Top 10 Bank in North America1  Leverage platform and brand for growth  One of only a few banks globally to be rated Aa1 by Moody’s2  Strong employment brand Retail Earnings Focus  Leader in customer service and convenience  Strong organic growth

6. Slide 6: Competing in Attractive Markets

   Competing in Attractive Markets Country Statistics Country Statistics  11th largest economy  World’s largest economy  Nominal GDP of C$2.0 trillion  Nominal GDP of US$17.3 trillion  Population of 36 million  Population of 319 million Canadian Banking System U.S. Banking System  Soundest banki

7. Slide 7: TD in North America

   TD in North America North Q2 2016 Canadian American C$ except otherwise noted Ranking4 Ranking5 Total assets $1,125B 2nd 6th Total deposits $715B 2nd 6th Market capitalization $104B 2nd 6th Adjusted net income1 (trailing four quarters) $9.0B 2nd 6th Reported net income (trailing four quarters) $8.4B

8. Slide 8: Composition of Earnings

   Composition of Earnings 2015 Adjusted Earnings Mix1,2 Three key business lines  Canadian Retail robust retail banking platform in Canada with proven performance  U.S. Retail top 10 bank5 in Canadian Retail U.S. Retail3 the U.S. with significant 64% 23% organic growth opportunities  Wholesale Bank

9. Slide 9: Strategic Evolution of TD

   Strategic Evolution of TD Increasing Retail Focus Acquired TD Acquired Target credit Became primary issuer Chrysler Completed strategic Acquired Waterhouse Acquired Commerce Acquired card portfolio & Epoch; of Aeroplan Visa; Privatized Financial credit card 51% of USA / Commerce Bank Riverside and a

10. Slide 10: Risk Management Framework

    Risk Management Framework Our Risk Appetite We take risks required to build our business, but only if those risks:  Fit our business strategy and can be understood and managed  Do not expose the enterprise to any significant single loss events; we don’t “bet the bank” on any single acquisition, bu

11. Slide 11: TD Bank Group – Key Themes

    TD Bank Group – Key Themes 6th largest bank 1 Top 10 North American Bank by Total Assets1 7th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Targeting 7-10% 4

12. Slide 12: Stable Earnings Growth

    Stable Earnings Growth Adjusted Earnings1,2 (C$MM) 8,754 8,127 20112: Wholesale Banking 7,136 7,064 Wealth & Insurance 6,432 U.S. P&C Canadian P&C 2012 – 20153: Wholesale Banking U.S. Retail Canadian Retail 2011 Segment 2012 2013 2014 2015 realignment Targeting 7-10% adjusted EPS growth1 over the me

13. Slide 13: Solid Total Shareholder Returns

    Solid Total Shareholder Returns Total Shareholder Return1 TD Compounded Annual Growth Rates (CAGR) Canadian peer average2 North American peer average3 15.0% 12.4% 10.3% 10.3% 9.9% 9.1% 8.8% 7.8% 5.8% 4.3% 2.5% -0.1% 1 Year 3 Years 5 Years 10 Years Delivering top tier long-term shareholder returns 1.

14. Slide 14: Strong, Consistent Dividend History

    Strong, Consistent Dividend History Dividends Per Share (C$) $2.00 Q1/16: Announced $0.04 dividend increase Dividend yield: 4.0%1 Q3/12: $0.22 Increased target payout range to 40%-50%2 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend h

15. Slide 15: Q2 2016 Highlights

    Q2 2016 Highlights Financial Highlights $MM Total Bank (Adjusted1 YoY) Adjusted1 Q2/16 Q1/16 Q2/15 EPS of $1.20 up 5% Revenue 8,317 8,564 7,742 PCL 584 642 375 Net Income up 5% Expenses 4,556 4,579 4,243 Net Income 2,282 2,247 2,169 Revenue up 7% Diluted EPS ($) 1.20 1.18 1.14  Up 4% ex FX and acqu

16. Slide 16: Q2 2016 Segment Results Highlights

    Q2 2016 Segment Results Highlights  Net income up 2% YoY, reflecting loan, deposit and wealth asset growth and lower insurance claims, partially offset by lower margins, higher PCL Canadian and a higher effective tax rate Retail  PCL up 15% QoQ, reflecting higher provisions and a sale of charged-o

17. Slide 17: Strong Credit Quality

    Strong Credit Quality GIL and PCL Ratios (bps) 83 81 78 66 61 60 63 58 56 50 50 43 39 37 38 34 34 26 31 25 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 IFRS Gross Impaired Loans / Gross Loans and Acceptances (bps) Provision for Credit Losses / Average Net Loans and Acceptances (bps) Credit qual

18. Slide 18: Oil and Gas Exposure

    Oil and Gas Exposure Corporate and Commercial Outstandings Highlights by Sector (C$B):  Oil and Gas Producers and Services $3.8 outstandings remain less than 1% of total gross loans and acceptances:  Four new formations in Wholesale in Oil & $1.4 / 37% Gas  C$45MM increase in specific allowances

19. Slide 19: TD Bank Group – Key Themes

    TD Bank Group – Key Themes 6th largest bank 1 Top 10 North American Bank by Total Assets1 7th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Targeting 7-10% 4

20. Slide 20: Attractive Balance Sheet Composition

    Attractive Balance Sheet Composition1 Funding Mix2 Wholesale Term Debt Sub-Debt 1% Assets Trading Securitized Covered Personal Non- Deposits5 21% Bonds Term Deposits 7% 26% 39% Wholesale Term Debt 12% Mortgage Personal Term Securitization Senior Deposits 18% Unsecured 6% MTN6 Other 53% Deposits3 24%

21. Slide 21: Gross Lending Portfolio

    Gross Lending Portfolio Balances Highlights Q2/16 Canadian Retail Portfolio $ 361.9 Personal $ 300.9 Canadian Portfolio Residential Mortgages 185.7  Real estate secured lending volume up 6% YoY Home Equity Lines of Credit (HELOC) 62.0  $248 billion portfolio (53% insured) Indirect Auto 19.7  Unin

22. Slide 22: Capital & Liquidity

    Capital & Liquidity Highlights Common Equity Tier 11 Common Equity Tier 1 ratio of 10.1% Q1 2016 CET1 Ratio 9.9% Leverage ratio of 3.8% Internal capital generation 25 bps Unrealized gains on AFS securities within AOCI 6 bps Liquidity coverage ratio of 128% Increase in common shares 3 bps RWA increas

23. Slide 23: Strong Focus on Risk-Adjusted Return

    Strong Focus on Risk-Adjusted Return Q2 2016 Adjusted Return on Accolades Risk-Weighted Assets1  “Safest Bank in North America & One of the World’s 50 Safest Banks” 2.30% – Global Finance Magazine 2.08%  “Best Big Bank in America” – Money® Magazine 1.31%  “Best Bank in Canada” – Euromoney Magazin

24. Slide 24: TD Bank Group – Key Themes

    TD Bank Group – Key Themes 6th largest bank 1 Top 10 North American Bank by Total Assets1 7th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Targeting 7-10% 4

25. Slide 25: Canadian Retail

    Canadian Retail Consistent Strategy Adjusted Net Income1 (C$MM) Segment $5,938 Realignment $5,490 How we compete $4,567 $4,681  Legendary customer service and convenience $3,051 $2,977  Relentless commitment to operational excellence  The power of One TD  Winning culture and team 2011 2012 2013

26. Slide 26: Canadian Retail

    Canadian Retail Personal Banking  #1 or #2 market share in most retail products1  On average 43% longer branch hours than peers2 with 431 branches offering Sunday banking  Mobile banking leadership in Canada with the highest number of mobile subscribers accessing financial services3  #1 or #2 in

27. Slide 27: U.S. Retail

    U.S. Retail Adjusted Net Income1 Consistent Strategy ($MM) Segment Realignment $2,547 How we compete $2,110  Legendary service and convenience $1,852 $1,619  Grow and deepen customer relationships $1,470 $1,270 C$  Differentiated brand as the “human” bank  Productivity initiatives that enhance b

28. Slide 28: U.S. Retail

    U.S. Retail Personal & Commercial Banking  Top 10 bank1 with 8MM+ customers, operating retail stores in 15 states and the District of Columbia  Open longer than the competition, including Sunday banking in most markets  #3 market share in NYC2 and targeting top 5 market share in all of our major

29. Slide 29: Wholesale Banking

    Wholesale Banking Consistent Strategy Net Income (C$MM) How we compete $880 $873 $815 $813 Canada $650  Be a top-ranked integrated investment dealer  Fully aligned with TD Bank Group partners $380  Provide superior advice and execution U.S.  Extend the Canadian franchise’s goals into the 2011 20

30. Slide 30: Wholesale Banking

    Wholesale Banking Focus on client-driven franchise businesses  Diversified business mix with a North American focus  Presence in key global financial centres  Extend our client-centric franchise model through superior advice and execution A North American dealer aligned with our TD partners  Foc

31. Slide 31: Omni Comfort and Convenience

    Omni Comfort and Convenience Consistent Strategy Digital Enhancements How we compete  Customer-centricity allows customers to choose how, when and where they bank TD MySpend allows customers to track and TD Bank offers Apple Pay2, Android Pay3 and modify their spending behaviours on Samsung Pay™4 .

32. Slide 32: Corporate & Social Responsibility

    Corporate & Social Responsibility  TD Friends of the Environment Foundation celebrates 25 years with over Highlights C$76 million in funds disbursed in support of more than 24,000 local environmental projects  Highest in Customer Satisfaction Among the Big Five  More than 235,000 trees planted th

33. Slide 33: A Principled Approach

    A Principled Approach Leadership Profile Guiding Principles  Deliver Legendary Customer  Make an Impact and Value Speed Experiences  Build for the Future  Be an Extraordinary Place to Work  Inspire the Will to Win  Operate with Excellence  Act Decisively while Working Effectively in Teams  U

34. Slide 34: TD Model Has Proven Its Resilience

    TD Model Has Proven Its Resilience Simple Strategy Vision: Consistent Focus To be The Better Bank  Lead with service and Headwinds  One of the World’s Most convenience Slowing loan growth in Admired Companies1 Canada  Leverage TD brand across all segments  One of Canada’s most Low interest rate

35. Slide 35: Investor Relations Contacts

    Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Best Investor Relations by Sector: Financial Services Best Corporate Governance Website: www.td.com/investor 34

36. Slide 36: TD Bank Group Investor Presentation

    TD Bank Group Investor Presentation Q2 2016

TD Bank Group — Q2 2016 Earnings Presentation on 6ix