Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q4 2016 Earnings Presentation
28 slides from Toronto-dominion Bank's earnings presentation, Dec 1, 2016
Slide 1: TD Bank Group Q4 2016 Quarterly Results Presentation
TD Bank Group Q4 2016 Quarterly Results Presentation Thursday December 1, 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: Fiscal 2016 Overview
Fiscal 2016 Overview Strong financial performance Growth in earnings and EPS Strong balance sheet Increased dividends per share by 8% over fiscal 2015 Top total shareholder return performance1 Good business fundamentals Continuing to invest to enhance the customer and employee experience D
Slide 4: Fiscal 2016 Highlights
Fiscal 2016 Highlights Financial Highlights $MM Total Bank Reported Results (YoY) Reported 2016 2015 YoY EPS up 11% (6% adjusted1) Revenue 34,315 31,426 9% PCL 2,330 1,683 38% Revenue up 9% Expenses 18,877 18,073 4% Net Income 8,936 8,024 11% Expenses up 4% Diluted EPS ($) 4.67 4.21 11% Adjusted e
Slide 5: Q4 2016 Highlights
Q4 2016 Highlights Financial Highlights $MM Total Bank Reported Results (YoY) Reported Q4/16 Q3/16 Q4/15 EPS up 25% (7% adjusted1) Revenue 8,745 8,701 8,047 PCL 548 556 509 Revenue up 9% Expenses 4,848 4,640 4,911 Adjusted revenue up 6% ex FX and acquisitions2 Net Income 2,303 2,358 1,839 Diluted
Slide 6: Canadian Retail
Canadian Retail Highlights (YoY) P&L $MM Q4/16 QoQ YoY Net income of $1.5 billion Revenue 5,150 0% 3% Insurance Claims 585 (15%) (8%) Revenue up 3% Revenue Net of Claims1 4,565 3% 5% Loan volumes up 5% PCL 263 2% 19% Deposit volumes up 10% Expenses 2,250 5% 5% Wealth assets2 up 10% Net Income
Slide 7: U.S. Retail
U.S. Retail Reported Highlights US$MM (YoY) P&L US$MM (except where noted) Reported Adjusted Earnings up 19% (9% adjusted1) Q4/16 QoQ YoY YoY Revenue up 13% (9% adjusted) Revenue 1,848 2% 13% 9% PCL 146 12% 10% 10% Loan volumes up 11% Expenses 1,142 8% 4% 5% Deposit volumes up 9% U.S. Retail Ban
Slide 8: Wholesale Banking
Wholesale Banking Highlights (YoY) P&L $MM Earnings up 21% Q4/16 QoQ YoY Revenue 741 (14%) 11% Revenue up 11% PCL 1 (91%) (93%) Higher origination activity and fixed income trading Expenses 432 (1%) 11% Lower equity trading and advisory fees Net Income 238 (21%) 21% Trading-related revenue of
Slide 9: Corporate Segment
Corporate Segment Highlights (YoY) P&L $MM Reported Q4/16 Q3/16 Q4/15 Reported loss down $310MM (adjusted1 $67MM) Net Income (138) (241) (448) Higher revenue from treasury and balance sheet management activities Adjusted1 Q4/16 Q3/16 Q4/15 Favourable impact of tax items and lower provisions for
Slide 10: Capital & Liquidity
Capital & Liquidity Highlights Common Equity Tier 11 Common Equity Tier 1 ratio of 10.4% Q3 2016 CET1 Ratio 10.4% Leverage ratio of 4.0% Internal capital generation 31 bps RWA increase and other (24) bps Liquidity coverage ratio of 130% Actuarial loss on employee pension plans (4) bps Q4 2016 CET1 R
Slide 11: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio Highlights GIL Formations1: $MM and Ratios2 Total formations stable quarter over quarter at 21bps $1,717 U.S. Retail formations quarterly $1,453 increase of $65MM driven by: $1,338 $142 / 38bps $21MM negative impact of $33 / 10bps $1,224 $1,227 forei
Slide 12: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio Highlights GIL1: $MM and Ratios2 Canadian Retail GIL rate remains $3,799 at cyclically low levels $39 / 10 bps $3,567 $3,467 $3,509 $3,244 $178 / 48 bps $163 / 41 bps U.S. Retail GIL quarterly increase $211 / 54 bps $55 / 16 bps of $101MM due to: $71MM n
Slide 13: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio Highlights PCL1: $MM and Ratios2 $648 Canadian and U.S. credit quality remains strong $10 / 11 bps $592 $550 $65 / NM $563 $554 U.S. Retail PCL increase of $9 / 10 bps $1 / NM $11 / 14 bps $48 / 53 bps $40 / NM $35MM attributable to: $ 36 / NM $60 /
Slide 14: Oil and Gas Exposure
Oil and Gas Exposure Corporate and Commercial Outstandings Highlights by Sector ($B): Oil and Gas Producers and Services outstandings reduced $400MM representing less than 1% of total gross loans and acceptances $3.1 $2.9 65% of undrawn Oil & Gas exposure is investment grade $1.2 / 39% Excludi
Slide 15: Appendix
Appendix
Slide 16: Fiscal 2016 and Q4 2016: Items of Note
Fiscal 2016 and Q4 2016: Items of Note Q4 2016 MM EPS Reported net income and EPS (diluted) $2,303 $1.20 Revenue/ Pre Tax After Tax Items of note EPS Segment Expense (MM) (MM) Line Item3 Amortization of intangibles1 $64 $60 $0.03 Corporate page 9, line 10 Fair value of derivatives hedging the reclas
Slide 17: Canadian Retail
Canadian Retail Net Interest Margin Average Deposits $B 284 294 268 272 274 21 22 19 19 20 2.84% 96 2.80% 84 85 85 91 2.79% 2.78% 2.77% 165 167 169 172 176 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Personal Business Wealth Efficiency Ratio Average Loans $B 359 361 365 371 354 57 58
Slide 18: Canadian Wealth
Canadian Wealth Wealth Revenue $MM Wealth Assets $B 950 927 864 879 883 120 121 113 118 116 345 126 321 337 122 112 133 310 308 115 265 268 245 247 254 685 703 636 649 634 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Fee & Other Transaction NII AUA AUM 18
Slide 19: U.S. Retail
U.S. Retail Net Interest Margin1 Average Deposits US$B 224 225 234 214 218 3.14% 3.13% 89 79 81 84 84 3.11% 3.11% 61 62 62 62 65 3.08% 73 75 78 79 80 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Q4/15 Q1/16 Q2/16 Q3/16 Q4/16 Personal Business TD Ameritrade IDAs 4 Efficiency Ratio2 Average Loans US$B 134 134 138 14
Slide 20: U.S. Retail
U.S. Retail TD Wealth Assets US$B1 TD Ameritrade2 77 TD’s share of TD Ameritrade’s net income 72 71 71 was C$93MM in Q4/16, down 15% YoY mainly 63 due to: Reduced trading volumes and higher operating expenses Partially offset by higher asset-based revenue and favourable tax items TD Ameritrade r
Slide 21: Canadian Housing Market
Canadian Housing Market Portfolio Q4/16 Gross Loans Outstanding $254 B Canadian RESL Percentage Insured 50% Uninsured Residential Mortgages Current LTV1 58% Condo Mortgage Gross Loans Outstanding $33 B Percentage Insured 60% Gross Loans Outstanding $6 B Condo HELOC Percentage Insured 26% Condo Borro
Slide 22: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q3/16 Q4/16 Canadian Retail Portfolio $ 368.4 $ 372.2 Personal $ 306.0 $ 309.1 Residential Mortgages 187.7 189.0 Home Equity Lines of Credit (HELOC) 63.9 65.0 Indirect Auto 20.4 20.6 Unsecured Lines of Credit 9.8 9.5 Credit
Slide 23: Canadian Personal Banking
Canadian Personal Banking Q4/16 Gross Loans GIL GIL / Highlights Canadian Personal Banking1 ($B) ($MM) Loans Credit quality remains strong Residential Mortgages 189 401 0.21% in the Canadian Personal Home Equity Lines of Credit (HELOC) 65 149 0.23% Indirect Auto 21 49 0.24% portfolio Unsecured Lin
Slide 24: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q4/16 Canadian Commercial and Gross Highlights GIL GIL/ Loans/BAs Wholesale Banking ($B) ($MM) Loans Canadian Commercial and Commercial Banking1 63 191 0.30% Wholesale Banking Wholesale 39 163 0.41% portfolios performed well Total Canadian Commercial and W
Slide 25: U.S. Personal Banking – U.S. Dollars
U.S. Personal Banking – U.S. Dollars Q4/16 U.S. Personal Banking1 Gross Loans GIL GIL / Highlights ($B) ($MM) Loans Residential Mortgages 21 336 1.63% Continued good asset quality Home Equity Lines of Credit (HELOC)2 10 700 7.11% in U.S. Personal Indirect Auto 21 146 0.69% Increase in gross impa
Slide 26: U.S. Commercial Banking – U.S. Dollars
U.S. Commercial Banking – U.S. Dollars Q4/16 U.S. Commercial Banking1 Gross Loans / GIL GIL/ Highlights BAs ($B) ($MM) Loans Commercial Real Estate (CRE) 21 119 0.57% Continuing portfolio growth Non-residential Real Estate 16 74 0.46% and good quality in U.S. Residential Real Estate 5 45 0.91% Com
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 Q4 2016 Quarterly Results Presentation
TD Bank Group Q4 2016 Quarterly Results Presentation Thursday December 1, 2016