Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q1 2016 Earnings Presentation
28 slides from Toronto-dominion Bank's earnings presentation, Feb 25, 2016
Slide 1: TD Bank Group Q1 2016 Quarterly Results Presentation
TD Bank Group Q1 2016 Quarterly Results Presentation Thursday February 25th, 2016
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
Slide 3: Overview
Overview Adjusted1 earnings of $2.2B, up 6% YoY Retail2 net income up 9% YoY, Wholesale down 16% YoY Positive impact of U.S. dollar earnings Earned through higher credit provisions and tax rate Adjusted EPS of $1.18, up 5% YoY Common Equity Tier 1 ratio of 9.9% Announced dividend increase of $
Slide 4: Looking Ahead
Looking Ahead Challenging environment Falling commodity prices Low interest rate environment Market volatility, increased risk aversion TD's business model is strong Credit quality remains strong Proven retail-focused strategy, strong balance sheet Sizeable U.S. earnings base Ability to
Slide 5: Q1 2016 Highlights
Q1 2016 Highlights Total Bank (YoY) Financial Highlights $MM Adjusted1 Q1/16 Q4/15 Q1/15 Adjusted EPS of $1.18 up 5% Revenue 8,564 8,096 7,614 Expenses 4,579 4,480 4,092 Adjusted Net Income up 6% Net Income 2,247 2,177 2,123 Adjusted Revenue up 12% Diluted EPS ($) 1.18 1.14 1.12 Up 4% ex FX and ac
Slide 6: Canadian Retail
Canadian Retail Highlights (YoY) P&L $MM Q1/16 QoQ YoY Net income up 4% Revenue 5,031 1% 3% Insurance Claims 655 3% -6% Revenue up 3% Revenue Net of Claims1 4,376 0% 4% Loan volumes up $20B or 6% PCL 228 3% 20% Deposit volumes up $14B or 5% Expenses 2,079 -3% 0% Net Income 1,513 1% 4% Wealth a
Slide 7: U.S. Retail
U.S. Retail Highlights US$MM (YoY) P&L US$MM (except where noted) Q1/16 QoQ YoY Q1/16 QoQ YoY Net income up 3% Adjusted1 Reported Revenue up 5% Revenue 1,747 3% 5% 1,747 7% 5% PCL 160 20% 70% 160 20% 70% Loan volumes up $17B or 15% Expenses 1,022 -6% 1% 1,022 -7% 1% Deposit volumes up $11B or 9%
Slide 8: Wholesale Banking
Wholesale Banking Highlights (YoY) P&L $MM Net income down 16% Q1/16 QoQ YoY Revenue 664 0% -7% Revenue down 7% PCL 12 -14% N/A Challenging equity trading environment and Expenses 429 10% -1% lower security gains Net Income 161 -18% -16% Trading-related income of $380MM ROE 10.6% Expenses down 1
Slide 9: Corporate Segment
Corporate Segment Highlights (YoY) P&L $MM Adjusted loss increased $35MM Q1/16 Q4/15 Q1/15 Net Corporate Expenses (203) $ (192) $ (172) Ongoing investment in enterprise and regulatory projects Other (4) 2 2 Higher provisions for incurred but not Non-Controlling Interests 29 29 27 identified cred
Slide 10: Capital & Liquidity
Capital & Liquidity Highlights Common Equity Tier 11 Common Equity Tier 1 ratio of 9.9% Q4 2015 CET1 Ratio 9.9% Leverage ratio of 3.7% Internal capital generation 32 bps Common share repurchases (13) bps Liquidity coverage ratio of 124% Actuarial losses on employee benefit plans (8) bps Unrealized l
Slide 11: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights $1,717 • Canadian Retail Formations constant at 19bps over the $1,338 past four quarters $1,206 $1,168 • No Formations in Wholesale $1,124 $33 / 10bps in the quarter $14 / 5bps $1,020 / 57 bps $16 / 5bps • U.S. G
Slide 12: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 $3,799 Highlights $39 / 10 bps • Canadian Retail and $3,244 Wholesale GIL stable for the $3,077 $2,967 past four quarters $2,905 $55 / 16 bps $36 / 12 bps $13 / 4 bps $28 / 9 bps • U.S. GIL quarterly increase of $518MM driven by: $2,709 /
Slide 13: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio Highlights PCL1: $MM and Ratios2 $648 • Canadian Retail and Wholesale $10 / NM credit quality remains strong $550 $65 / NM • Stable loss rate of 25bps $11 / NM $443 $36 / NM • $65MM reserve build mainly $396 attributable to volume growth and $1 / NM $36
Slide 14: Oil and Gas Exposure
Oil and Gas Exposure Corporate and Commercial Outstandings Highlights by Sector ($B): • Oil and Gas Producers and Services $3.5 outstandings represent less than 1% of total gross loans and acceptances: • No new impairments in Wholesale in O&G $1.2 / 34% • $21MM in Commercial and Mid-Market impaired
Slide 15: Appendix
Appendix
Slide 16: Q1 2016 Earnings: Items of Note
Q1 2016 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $2,223 $1.17 Revenue/ Pre Tax After Tax Items of note EPS Segment Expense (MM) (MM) Line Item3 Amortization of intangibles1 $74 $65 $0.03 Corporate page 9, line 10 Fair value of derivatives hedging the reclassified ($46) ($
Slide 17: Canadian Retail
Canadian Retail Net Interest Margin Average Deposits $B 265 269 272 259 260 18 19 19 19 19 2.88% 2.89% 2.88% 83 81 84 84 85 2.84% 2.80% 158 160 162 166 167 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Personal Business Wealth Efficiency Ratio Average Loans $B 347 354 359 339 341 56 57
Slide 18: Canadian Wealth
Canadian Wealth Wealth Revenue $MM Wealth Assets $B 856 875 864 879 841 312 314 310 308 112 117 113 118 302 118 116 115 112 249 245 247 124 131 242 244 599 613 642 636 649 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Fee & Other Transaction NII AUA AUM 18
Slide 19: US Retail
US Retail Net Interest Margin Average Deposits US$B 214 219 201 204 206 3.20% 80 81 75 75 75 3.14% 3.11% 3.05% 3.08% 57 57 58 61 63 69 72 73 73 75 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 Q1/15 Q2/15 Q3/15 Q4/15 Q1/16 2 Personal Business TD Ameritrade IDAs Adjusted1 Efficiency Ratio Average Loans US$B 134 122
Slide 20: U.S. Wealth
U.S. Wealth Wealth Assets US$B TD Ameritrade1 TD’s share of TD Ameritrade’s net 77 income was C$109 MM in Q1/16, up 73 74 71 21% YoY mainly due to: • FX translation, higher asset-based 61 revenue and reduced operating expenses, partially offset by lower transaction-based revenue TD Ameritrade result
Slide 21: Canadian Housing Market
Canadian Housing Market Portfolio Q1/16 Gross Loans Outstanding $247 B Canadian RESL Percentage Insured 55% Uninsured Residential Mortgages Current LTV1 59% Condo Borrower Gross Loans Outstanding $32 B (Residential Mortgages) Percentage Insured 65% Gross Loans Outstanding $6 B Condo Borrower 32% (HE
Slide 22: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q4/15 Q1/16 Canadian Retail Portfolio $ 355.9 $ 359.2 Personal $ 298.6 $ 299.8 Residential Mortgages 184.5 185.9 Home Equity Lines of Credit (HELOC) 61.2 61.2 Indirect Auto 19.0 19.2 Unsecured Lines of Credit 9.6 9.6 Credit
Slide 23: Canadian Personal Banking
Canadian Personal Banking Q1/16 Gross Loans GIL/ GIL PCL2 Canadian Personal Banking1 ($B) Loans ($MM) ($MM) Highlights Residential Mortgages 186 0.23% 435 4 • Credit quality remains Home Equity Lines of Credit (HELOC) 61 0.28% 174 (1) strong in the Canadian Indirect Auto 19 0.28% 53 63 Personal port
Slide 24: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q1/16 Canadian Commercial and Gross GIL PCL1 Highlights Loans/BAs Wholesale Banking ($B) ($MM) ($MM) • Canadian Commercial and Commercial Banking3 60 177 8 Wholesale Banking Wholesale 37 39 10 portfolios continue to Total Canadian Commercial and Wholesale $9
Slide 25: U.S. Personal Banking – U.S. Dollars
U.S. Personal Banking – U.S. Dollars Q1/16 U.S. Personal Banking1 Gross Loans GIL/ GIL PCL2 Highlights ($B) Loans ($MM) ($MM) • Gross Impaired Loans Residential Mortgages 21 1.56% 317 -6 increase driven by ongoing Home Equity Lines of Credit (HELOC)3 10 8.68% 881 11 renewal of legacy interest- Indir
Slide 26: U.S. Commercial Banking – U.S. Dollars
U.S. Commercial Banking – U.S. Dollars Q1/16 Gross Highlights GIL PCL2 U.S. Commercial Banking1 Loans/BAs ($B) ($MM) ($MM) • Strong portfolio growth and Commercial Real Estate (CRE) 19 152 -1 sustained good quality in Non-residential Real Estate 14 94 -2 U.S. Commercial Banking Residential Real Esta
Slide 27: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Website: Best Investor Relations by Sector: Financial Services www.td.com/investor Best Corporate Governance
Slide 28: TD Bank Group Q1 2016 Quarterly Results Presentation
TD Bank Group Q1 2016 Quarterly Results Presentation Thursday February 25th, 2016