Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q3 2015 Earnings Presentation
35 slides from Toronto-dominion Bank's earnings presentation, 2015
Slide 1: TD Bank Group Investor Presentation Q3 2015
TD Bank Group Investor Presentation Q3 2015
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: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 Retail Focused North American Bank by Total Assets1 7th largest bank by Market Cap1 Delivering top tier long 2 Proven Performance term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
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 Q3 20151 Canadian U.S. U.S. Retail (C$ except
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
Slide 6: Competing in Attractive Markets
Competing in Attractive Markets Country Statistics Country Statistics 10th largest economy World’s largest economy Nominal GDP of C$1.7 trillion Nominal GDP of US$15.1 trillion Population of 35 million Population of 314 million Canadian Banking System U.S. Banking System Soundest banki
Slide 7: TD in North America
TD in North America North Q3 2015 Canadian American C$ except otherwise noted Ranking5 Ranking6 Total assets $1,099B 1st 5th Total deposits $686B 2nd 6th Market capitalization $98B 2nd 7th Adjusted net income1 (trailing four quarters) $8.4B 2nd 6th Reported net income (trailing four quarters) $7.9B
Slide 8: Composition of Earnings
Composition of Earnings Adjusted Earnings1 2014 Adjusted (C$MM) Retail Earnings1,4 = 90% Adjusted Retail Earnings1,4 Wholesale Earnings $8,127 10% Canadian 90% Retail U.S Retail2 65% 21% 4 TD AMTD3 4% $2,158 42% Wholesale 10% 58% 2001 2014 Retail-focused earnings mix 1. See slide 4, footnote 3, for
Slide 9: Strategic Evolution of TD
Strategic Evolution of TD INCREASING RETAIL FOCUS Became primary Acquired Acquired Target issuer of TD Chrysler credit card Aeroplan Visa; Announced Waterhouse Financial portfolio & Epoch; acquired ~50% strategic TD Bank Acquired Acquired USA / Acquired Commerce Acquired and MBNA and announced of CI
Slide 10: Risk Management Framework
Risk Management Framework Our Risk Appetite We take risks required to build our business, but only if those risks: Fit our business strategy and can be understood and managed Do not expose the enterprise to any significant single loss events; we don’t “bet the bank” on any single acquisition, bu
Slide 11: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 Retail Focused North American Bank by Total Assets1 7th largest bank by Market Cap1 Delivering top tier long 2 Proven Performance term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
Slide 12: Stable Earnings Growth
Stable Earnings Growth Adjusted Earnings1,2,4 (C$MM) 8,127 2010 – 20112: 7,136 7,064 Wholesale Banking 6,432 Wealth & Insurance 5,228 U.S. P&C Canadian P&C 2012 – 20144: Wholesale Banking U.S. Retail Canadian Retail 2010 2011 2012 2013 2014 IFRS Segment realignment Targeting 7-10% adjusted EPS growt
Slide 13: Solid Total Shareholder Returns
Solid Total Shareholder Returns Total Shareholder Return1 Compounded Annual Growth Rates (CAGR) TD Canadian peer average2 North American peer average3 20.6% 14.3% 14.1% 11.5% 11.3% 10.4% 8.8% 9.6% 8.2% 4.4% -4.1% -5.3% 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years Delivering top ti
Slide 14: Strong, Consistent Dividend History
Strong, Consistent Dividend History Dividends Per Share (C$) $1.84 Q1/15: Announced $0.04 dividend increase Dividend yield: 3.7%1 $0.20 Q3/12: Increased target payout range to 40%-50%2 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Dividend h
Slide 15: Q3 2015 Highlights
Q3 2015 Highlights Key Themes Financial Highlights $MM Adjusted1 EPS of $1.20, up 4% YoY P&L Summary Adjusted1 Adjusted Net Income up 5% from Q3/14 Adjusted1 Q3/15 Q2/15 Q3/14 Strong contribution from both Retail and Wholesale Revenue2 $ 7,385 7,178 6,711 businesses Expenses 4,261 4,243 3,912
Slide 16: Q3 2015 Segment Results Highlights
Q3 2015 Segment Results Highlights Adjusted1 net income up 8% YoY Good loan, deposit and wealth asset growth; strong Insurance Canadian Solid P&C Banking, earnings strong Retail PCL up 4% YoY with higher Business banking, partially offset Wealth & Insurance by a decrease in Personal banking PC
Slide 17: Q3 2015 Credit Highlights
Q3 2015 Credit Highlights Highlights PCL Ratio (bps)1 Ongoing strong performance and growth across the broad portfolio 33 33 32 Loss rates remain at low levels 29 28 PCL and GIL ratios continue to exhibit a stable trend Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 GIL Ratio (bps)2 57 57 56 56 55 Great quarte
Slide 18: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank by Total Assets1 1 Top 10 Retail Focused North American Bank 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 Tar
Slide 19: Attractive Balance Sheet Composition
Attractive Balance Sheet Composition1 Funding Mix2 Wholesale Term Debt Assets Securitized 26% Other Deposits33 Personal Personal Other24% Deposits Covered Bonds TermDeposits Term Deposits 26% 23% 8% 6% Residential Mortgages Short Term Liabilities 4 58% Short Term Liabilities4 Mortgage 11%12% Securit
Slide 20: Gross Lending Portfolio
Gross Lending Portfolio Balances Highlights C$B (unless otherwise noted) Q3/15 Canadian Retail Portfolio $ 350.6 Personal $ 293.6 Canadian portfolio Residential Mortgages 180.2 Home Equity Lines of Credit (HELOC) 60.9 Real estate secured lending volume up 4% YoY $241 billion portfolio (58% insur
Slide 21: Capital & Liquidity
Capital & Liquidity Highlights Basel III Common Equity Tier 11 Basel III Common Equity Tier 1 ratio 10.1% 9.9% 10.1% Increase QoQ reflects solid 9.3% 9.4% 9.5% organic capital generation partly offset by increased RWA Leverage ratio of 3.7% Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Liquidity coverage ra
Slide 22: Strong Focus on Risk-Adjusted Return
Strong Focus on Risk-Adjusted Return Accolades Q3 2015 Adjusted Return on Risk-Weighted Assets1 “Safest Bank in North 2.48% 2.26% America & One of the World’s 50 Safest Banks” 1.49% – Global Finance Magazine “Best Big Bank in America” – Money® Magazine “One of the World's Most TD 2 Canadian Pe
Slide 23: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 Retail Focused North American Bank by Total Assets1 7th largest bank by Market Cap1 Delivering top tier long 2 Proven Performance term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
Slide 24: Canadian Retail
Canadian Retail Consistent Strategy Adjusted Net Income1 (C$MM) Segment IFRS Realignment $5,490 How we compete $4,567 $4,681 $4,442 Committed to customer service and $3,095 $3,051 convenience across all channels Focused on operational excellence Integrated product offerings Reinvesting for t
Slide 25: Canadian Retail
Canadian Retail Personal & Commercial Banking #1 or #2 market share in most retail products1 On average 44% longer branch hours than peers2 with nearly 430 branches offering Sunday banking Mobile banking leadership in Canada with the highest number of mobile subscribers accessing financial ser
Slide 26: U.S. Retail
U.S. Retail Consistent Strategy Adjusted Net Income1 ($MM) Segment IFRS Realignment How we compete $2,110 $1,852 $1,901 Providing customers with legendary $1,619 service and convenience $1,270 $1,042 Bringing the whole Bank to our customers C$ Conservative risk appetite Unique employee cultu
Slide 27: 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
Slide 28: Wholesale Banking
Wholesale Banking Consistent Strategy Net Income1 (C$MM) IFRS How we compete $987 $880 $815 $813 Canada $650 $677 Be the top-ranked integrated investment dealer Fully aligned with TD Bank Group partners Provide superior advice and execution U.S. Extend Canadian franchise’s goals into the U.S
Slide 29: Wholesale Banking
Wholesale Banking Focus on client-driven franchise businesses Diversified business mix with a North American focus Presence in key global financial centres Evolved the business model by strategically repositioning the dealer to concentrate on core client-driven activities A North American deal
Slide 30: Omni-Channel Comfort and Convenience
Omni-Channel Comfort and Convenience Consistent Strategy Digital Enhancements How we compete Customer-centricity allows customers to choose how, when and where they bank Easily deposit cheques as soon as Confidently deposit cheques and cash at they are received with ATMs without envelopes and have
Slide 31: Corporate & Social Responsibility
Corporate & Social Responsibility Highlights Highest in Customer Satisfaction Among the Big Five TD Friends of the Environment Foundation celebrates 25 years Retail Banks in Canada by J.D. Power1 with over C$70 million in funds disbursed in support of more than 23,000 local environmental project
Slide 32: A Principled Approach
A Principled Approach Guiding Principles Leadership Profile ■ 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 ■ Understand Our Busines
Slide 33: 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 Admired Companies1 growth in Canada ■ Leverage TD brand across all segments Low interest rate One of Canada’s m
Slide 34: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Grand Prix for Best Overall Investor Relations: Large Cap Email: Best Investor Relations by Sector: Financial Services tdir@td.com Best Investor Relations by a CFO: Large Cap Best Investor Relations Officer: Large Cap Website: Best Fi
Slide 35: TD Bank Group Investor Presentation
TD Bank Group Investor Presentation Q3 2015