Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q1 2018 Earnings Presentation
27 slides from Toronto-dominion Bank's earnings presentation, Mar 1, 2018
Slide 1: TD Bank Group Q1 2018 Quarterly Results Presentation
TD Bank Group Q1 2018 Quarterly Results Presentation Thursday March 1, 2018
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 Strong start to the year Reported earnings and EPS down 7% and 6%, respectively Primarily due to the one-time impact of U.S. tax reform Adjusted earnings and EPS up 15% and 17%, respectively1 Announced 7 cent increase in dividend paid per share (up 12%)2 All businesses performed w
Slide 4: Q1 2018 Highlights
Q1 2018 Highlights Total Bank Reported Results (YoY) Financial Highlights $MM Reported Q1/18 Q4/17 Q1/17 EPS down 6% Revenue 9,360 9,270 9,120 PCL 693 578 633 Adjusted EPS up 17%1 Expenses 4,846 4,828 4,897 Revenue up 3% (up 4% adjusted)1 Net Income 2,353 2,712 2,533 Net interest income up 6% Di
Slide 5: Canadian Retail
Canadian Retail Highlights (YoY) P&L $MM Q1/18 QoQ YoY Net income up 12% Revenue 5,550 3% 7% Insurance Claims 575 (7%) NM Revenue up 7% Revenue Net of Claims1 4,975 4% 7% Loan volumes up 6% PCL 270 11% NM Deposit volumes up 7% Expenses 2,311 2% 4% Net Income 1,757 6% 12% Wealth revenue up 10%
Slide 6: U.S. Retail
U.S. Retail Highlights US$MM (YoY) P&L US$MM (except where noted) YoY Q1/18 QoQ YoY Net income up 25% (up 35% adjusted)1 Adjusted1 Revenue 2,088 3% 10% 10% Revenue up 10% PCL 195 20% 1% 1% Loan volumes up 5% Expenses 1,144 (6%) 6% 6% Deposit volumes up 8% U.S. Retail Bank 669 24% 29% 30% Net Inc
Slide 7: Wholesale Banking
Wholesale Banking Highlights (YoY) P&L $MM Q1/18 QoQ YoY Net income up 4% Revenue 875 26% 2% PCL (7) NM NM Revenue up 2% Expenses 511 22% (2%) Higher corporate lending Net Income 278 20% 4% Expenses down 2% ROE 20.1% Earnings $MM $293 $267 $278 $248 $231 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 7 NM: Not mea
Slide 8: Corporate Segment
Corporate Segment Highlights (YoY) P&L $MM Reported loss of $634MM Reported Q1/18 Q4/17 Q1/17 Net Income (634) 41 (100) Adjusted1 loss of $113MM Includes impact of U.S. tax reform of $453MM2 Adjusted1 Q1/18 Q4/17 Q1/17 Lower net corporate expenses Net Corporate Expenses (198) (182) (233) Other
Slide 9: Capital & Liquidity
Capital & Liquidity Highlights Common Equity Tier 1 Common Equity Tier 1 ratio of 10.6% Q4 2017 CET1 Ratio 10.7% Leverage ratio of 4% Internal capital generation 38 Impact of U.S. tax reform (12) Liquidity coverage ratio of 122% Organic RWA increase and other (7) Regulatory floor RWA increase (28) Q
Slide 10: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights $1,281 $1,257 Gross impaired loan formations $1,154 $1,189 stable quarter-over-quarter and $1,100 year-over-year $650 / 35 bps $718 / 38 bps $620 / 33 bps $669 / 36 bps $601 / 32 bps $631 / 17 bps $534 / 14 bps
Slide 11: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights Gross impaired loans stable $3,399 $3,290 quarter-over-quarter and down 8 $73 / 18 bps $2,985 $3,085 $3,048 $59 / 13 bps basis points year-over-year $37 / 8 bps $31 / 6 bps $37 / 8 bps U.S. Retail gross impaired loans decre
Slide 12: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio PCL1,2: $MM and Ratios3 Highlights $698 $635 $602 PCL increased $96MM quarter- over-quarter driven by $1 / NM The U.S. credit card and $518 $512 Indirect auto portfolios due $439 / 93 bps largely to seasonal trends $392 / 84 bps The expected credi
Slide 13: Provision for Credit Losses (PCL) By Business Segment
Provision for Credit Losses (PCL)1,2,3 By Business Segment IAS 39 IFRS 9 (C$MM unless otherwise noted) Q1/17 Q4/17 Q1/18 Highlights Total Bank4 $ 635 $ 602 $ 698 Impaired PCL stable quarter- Impaired $ 505 $ 556 $ 566 over-quarter Performing 130 46 132 Canadian Retail Portfolio $ 268 $ 243 $ 270
Slide 14: Appendix
Appendix
Slide 15: Q1 2018: Items of Note
Q1 2018: Items of Note1 MM EPS Reported net income and EPS (diluted) $2,283 $1.24 Pre Tax After Tax Revenue/ Expense Items of note EPS Segment (MM) (MM) Line Item5 Amortization of intangibles1 85 68 0.04 Corporate page 8, line 12 Charges associated with the Scottrade transaction2 73 72 0.04 U.S. Ret
Slide 16: Canadian Retail
Canadian Retail Net Interest Margin Average Deposits $B 314 317 323 303 305 24 23 24 2.88% 24 25 2.86% 2.84% 2.82% 2.81% 106 107 109 99 99 180 182 185 186 189 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Personal Business Wealth Efficiency Ratio Average Loans $B 382 390 395 374 376 67
Slide 17: Canadian Retail: Wealth
Canadian Retail: Wealth Wealth Revenue $MM Canadian Retail Assets $B1 1053 957 947 967 966 144 127 128 131 134 158 404 397 116 115 390 2 387 151 136 370 279 283 289 266 272 720 717 751 679 683 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Fee & Other Transaction NII AUA AUM 1. Canadian
Slide 18: U.S. Retail
U.S. Retail Net Interest Margin1 Average Deposits US$B 250 261 242 245 241 3.19% 3.18% 95 95 91 99 109 3.14% 3.05% 3.03% 66 66 65 66 65 82 85 85 85 87 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 3 Personal Business TD Ameritrade IDAs Efficiency Ratio2 Average Loans US$B 143 144 148 1
Slide 19: U.S. Retail: Wealth and TD Ameritrade
U.S. Retail: Wealth and TD Ameritrade TD Wealth Assets US$B1 TD Ameritrade2 - Q1 2018 TD’s share of TD Ameritrade’s net income was 65 61 63 US$82MM on a reported basis and US$137MM 60 60 on an adjusted3 basis, up 65% YoY reflecting: Higher asset-based revenue, increased trading volumes, and a lowe
Slide 20: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q4/17 Q1/18 Canadian Retail Portfolio $ 391.2 $395.6 Personal $ 323.1 $325.3 Residential Mortgages 190.5 190.6 Home Equity Lines of Credit (HELOC) 75.0 76.8 Indirect Auto 22.3 22.5 Unsecured Lines of Credit 9.8 9.9 Credit Ca
Slide 21: Canadian Real Estate Secured Lending Portfolio
Canadian Real Estate Secured Lending Portfolio Quarterly Portfolio Volumes $B Highlights $254 $256 $261 $265 $267 Canadian RESL credit quality remains strong 52% 53% 56% 58% 59% Gross impaired loan formations and gross Uninsured impaired loans reduced year-over-year Insured PCL remains stable in
Slide 22: Canadian Personal Banking
Canadian Personal Banking Q1/18 Highlights Gross GIL GIL / Canadian Personal Banking1 Credit quality remains strong Loans ($B) ($MM) Loans Residential Mortgages 191 274 0.14% in the Canadian personal Home Equity Lines of Credit (HELOC) 77 117 0.15% portfolio Indirect Auto 22 79 0.35% Credit Cards
Slide 23: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q1/18 Canadian Commercial and Gross Highlights GIL GIL/ Loans/BAs Wholesale Banking1 ($B) ($MM) Loans Canadian commercial and Commercial Banking2 70 183 0.26% Wholesale Banking portfolios Wholesale 48 31 0.06% continue to perform well Total Canadian Commer
Slide 24: U.S. Personal Banking – U.S. Dollars
U.S. Personal Banking – U.S. Dollars Q1/18 U.S. Personal Banking1 Gross Loans GIL GIL / Highlights ($B) ($MM) Loans Residential Mortgages 22 363 1.63% Continued good asset quality Home Equity Lines of Credit (HELOC)2 10 663 6.89% in U.S. personal Indirect Auto 23 211 0.92% US$52MM quarter-over-
Slide 25: U.S. Commercial Banking – U.S. Dollars
U.S. Commercial Banking – U.S. Dollars Q1/18 Highlights Gross Loans / GIL GIL/ U.S. Commercial Banking1 BAs ($B) ($MM) Loans Sustained good credit Commercial Real Estate (CRE) 23 95 0.42% quality in U.S. commercial Non-residential Real Estate 17 67 0.40% banking Residential Real Estate 6 28 0.47%
Slide 26: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Website: www.td.com/investor
Slide 27: TD Bank Group Q1 2018 Quarterly Results Presentation
TD Bank Group Q1 2018 Quarterly Results Presentation Thursday March 1, 2018