Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — TD Bank Financial Group — Q3 2001 Earnings Presentation

23 slides from Toronto-dominion Bank's earnings presentation, 2001

  1. Slide 1: TD Bank Financial Group Third Quarter 2001 Overview

    TD Bank Financial Group Dan Marinangeli EVP & CFO THIRD QUARTER 2001 Overview* Third Quarter 2001 • EPS of $0.80 • Revenue of $2.7 billion, up 3% • ROE 17.1% versus 18.1% last year • Tier 1 ratio steady at 7.9 % • TDCT Conversion successfully completed • TDCT net income $275 million, up 20% YoY • TD

  2. Slide 2: Special items and Key Goals

    Special items $ million EPS Reported operating cash earnings $ 502 $ 0.80 Which excludes: Special items TWE restructuring ($54 MM pre-tax) $ (30) $ (0.05) Reduction of future income tax assets (25) (0.04) $ (55) $ (0.09) Slide 3: TDBFG Key Goals How did we do? Q3/01 Goals Cash basis ROE 17.1.% 17 -

  3. Slide 3: Revenue Growth and EPS Growth

    Revenue Growth Base = Q3/00 120 110 4 Bank Cdn. Peer * ** 100 U.S. Peers *** 90 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 * Based on company reports. Q3/01 based on actual growth of CM and RY. ** Total revenue (TEB) excluding special gains. *** Universe includes largest 14 comparable banks and 3 brokerage compa

  4. Slide 4: Retail Segment Performance: Momentum

    Segment Performance Retail Canada Trust Momentum Revenue $ Millions $1,335 $1,372 $1,388 $1,432 Top-line growth continues: $1,305 • Revenue growth is $44 million or 3% higher than Q2/01 • Growth of $127 million or 10% over the same quarter last year Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Slide 8: TDCT 4

  5. Slide 5: Momentum: Cash Net Income and Operating Efficiency

    Momentum Cash Net Income $ Millions Strong earnings growth: • Cash net income of $275 million $267 $271 $275 $248 for the quarter $230 • Up $4 million or 1.5% versus Q2/01 and $45 million or 20% higher than Q3/00 Impressive operating ROE1: • Q3/01 ROE = 29% versus 30% for Q2/01 and 24% for Q3/00 Q3/

  6. Slide 6: Net Interest Margin and Personal Loans

    Margin Net Interest Margin* 3.34% 3.39% 3.38% 3.28% 3.22% Q3 00 Q4 00 Q1 01 Q2/01 Q3/01 * Margin excludes impact of securitization. Slide 11: TDCT Personal Loans (including Cards) & Mortgages 8.1% Yr over Yr growth $ Billions 1.6% Qtr over Qtr growth $100 22.5% $90 22.0% 21.5% $80 21.0% $70 20.5% $6

  7. Slide 7: Personal Deposits

    Personal Deposits 3.1% Yr over Yr growth $ Billions 0.4% Qtr over Qtr growth $84 24% $80 23% $76 22% $72 21% $68 $64 20% $60 19% Q3/99 Q1/00 Q3/00 Q1/01 Q3/01 Volume Cdn. Bank Mkt. Share to June/01 Note: Data restates TD and CT as a combined entity. (Canadian Currency) Slide 13: TDCT Segment Perform

  8. Slide 8: TD Waterhouse Revenue and Margin Loans

    TD Waterhouse Revenue Cash Net $ Millions Income $ Millions $500 $519 $497 $409 $367 $53 $58 $47 $7 $1 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Slide 15: TD Waterhouse Margin Loans $CDN billion (at period end) $12.5 $12.1 $9.1 $6.4 $6.6 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Slide 16: TD W

  9. Slide 9: TD Waterhouse Group, Inc.

    TD Waterhouse Group, Inc. 2000 2001 Yr/Yr July 31 Apr 30 July 31 Change ($US) Active Accounts (000) 3,011 3,269 3,262 8% New accounts (000) 172 169 106 (39)% Trades/day (000) 157 124 102 (35)% Online penetration 74% 74% 77% 5% Customer Assets($B) $163 $138 $137 (16)% Slide 17: TD Waterhouse Segment

  10. Slide 10: TD Wealth Management

    TD Wealth Management Revenue Cash Net $ Millions Income $ Millions $189 $196 $185 $174 $38 $164 $33 $29 $25 $20 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Slide 19: TDWM TD Wealth Management Assets Under Management $ Billions $116 $117 120 $112 $113 $107 100 80 $43 $45 $39 $42 $36 6

  11. Slide 11: Mutual Funds

    Mutual Funds WAF (TDAM) Q3/01 1.22% $ Billions WAF (TWE) Q3/01 0.71% $30 10% $25 $20 $15 5% $10 $5 $0 0% Q3/99 Q1/00 Q3/00 Q1/01 Q3/01 Canada Waterhouse Cdn. MF Industry Mkt. Share to June/01 Slide 21: TDWM Segment Performance 11

  12. Slide 12: TD Securities: Revenue

    TD Securities: Revenue $ Millions $794 $766 $770 $650 $653 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Slide 23: TDSI TD Securities: Revenue Q3/00 Q3/01 Total Revenue = $650MM Total Revenue = $770MM 5% 15% 5% 38% 26% 8% 37% 11% 5% 7% 8% 8% 16% 11% Slide 24: TDSI 12

  13. Slide 13: TD Securities Cash Net Income and ROE

    TD Securities Cash Net Income ROE $ Millions % $227 23% 23% $231 $217 21% 20% 19% $179 $168 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Slide 25: TDSI TD Bank Financial Group Tom Spencer EVP, Risk Management THIRD QUARTER 2001 13

  14. Slide 14: Strong Asset Quality and General Reserves

    Strong Asset Quality Ratio of PCL to Loans & BAs % 1.00 0.80 TD 4 Bank Peer 0.60 0.40 49 bps 0.20 0.00 1994 1995 1996 1997 1998 1999 2000 Q1/01 Q2/01 Q3/01 Excludes special general provisions and reverse repos. Based on estimated full year provision and most recent average loan and BA balances. Slid

  15. Slide 15: New Formations and Impaired Loans

    New Formations New Formation of Impaired Loans & Loan Substitutes (before Write-offs) As a % of Gross $ Millions Loans & BA’s 38 bps $500 0.4% $400 0.3% $300 0.2% $200 0.1% $100 $0 0.0% Q3/99 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Slide 29: TDBFG Impaired Loans $ Millions $1,600 1.20% $1,40

  16. Slide 16: Telecom & Cable Loans and Market Risk

    Telecom & Cable Loans & BAs* Inv. Non-Inv. $C million Total Grade Grade Regulated Telephone 888 - 888 Unregulated CLEC - 394 394 Long Haul/Fibre 57 122 179 Paging - 122 122 Wireless 855 836 1,691 Other 403 504 907 Total Unregulated 1,315 1,978 3,293 Telecom Equipment 60 61 121 Non-North American Cab

  17. Slide 17: Market Risk: Distribution of Daily Net Trading Revenues

    Market Risk Distribution of Daily Net Trading Revenues Q3 - 2001 8 7 6 Frequency (Days) 5 4 3 2 1 0 1 3 5 7 9 11 13 15 17 19 21 23 25 27 29 (1 (1 (1 (1 (9 (7 (5 (3 (1 >3 7) 5) 3) 1) ) ) ) ) ) 0 Daily P&L (CAD Millions) Slide 33: TDBFG TD Canada Trust Integration Status Chris Stringer Executive Direc

  18. Slide 18: Integration Plan and Timeline

    Our Integration Plan TD Bank Integrate successfully • Achieve merger business plan • Integrate systems, products and branches Canada Trust • Build a better bank under the TD Canada Trust brand Slide 35: TDCT Integration Update Integration Timeline ns ns io i o e rs ns vers nv ns rs io n e Co sio e C

  19. Slide 19: Ontario Conversion Completed

    Ontario Conversion Completed • 70% of CT data • 272 CT branches converted and re-branded • 440 TD branches re-branded • 1,500 ABMs converted and/or re-branded • 2.6 million personalized communication packages • 1.9 million Access cards mailed • Ontario customers now using EasyLine and EasyWeb Slide

  20. Slide 20: Conversion Summary and Customer Satisfaction

    Conversion Summary • Extremely satisfied with the successful completion of the conversion phase • Appreciative of our customers’ response • Employees accomplished a huge task Slide 39: TDCT Integration Update CSI is behaving as expected through the conversion process • All of our customer base has b

  21. Slide 21: Summary Progress Report and Next Steps

    Summary Progress Report at August 2001 Expense synergies on track ✔D FTE reductions on track ✔D Restructuring on budget ✔D Market share has increased ✔D Revenue growth ahead of peer group ✔D Efficiency ratio ahead of peer group ✔D Slide 41: TDCT Integration Update Next Steps Branch Consolidation 200

  22. Slide 22: Forward Looking Statements

    Next Steps Focused on building a better Bank Slide 43: TDCT Integration Update Forward Looking Statements This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of TD. These statements are subject to a number of ris

  23. Slide 23: TD Bank Financial Group Third Quarter 2001

    TD Bank Financial Group THIRD QUARTER 2001 23

TD Bank Financial Group — Q3 2001 Earnings Presentation on 6ix