Toronto-Dominion Bank · TSX:TD

Toronto-Dominion Bank — Q2 2001 Earnings Presentation

28 slides from Toronto-Dominion Bank's earnings presentation, 2001

  1. Slide 1: Second Quarter 2001 Highlights

    SECOND QUARTER 2001 Bank Financial Group Dan Marinangeli EVP & CFO Highlights* Second Quarter 2001 • EPS of $0.84 • Record TDCT net income of $271 million • Atlantic Conversion successful • Tier 1 ratio up to 7.9% • Revenue of $2.6 billion, down 7% • ROE 18.7% versus 19.5% last year • General reserv

  2. Slide 2: Special Items and Key Goals

    Special items $ million EPS Reported operating cash earnings $ 525 $ 0.84 Which excludes: Special items Sale of real estate (Other income $200MM pre-tax) $ 163 $ 0.26 General provisions (PCL $150MM pre-tax) (96) (0.15) $ 67 $ 0.11 Slide 3: TDBFG Key Goals How did we do? Q2/01 Goals Cash basis ROE 18

  3. Slide 3: Revenue Growth and EPS Growth

    Revenue Growth Base = Q2/00 120 110 4 Bank Cdn. Peer * 100 U.S. Peers ** *** 90 80 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 * Based on company reports (1 quarter lag). ** Universe includes largest 14 comparable banks and 3 brokerage comparables. Source: Keefe Bruyette Woods and company reports . Calendar quart

  4. Slide 4: Business Segment Measures

    Business Segment Measures Operating performance • Economic Capital only is allocated to business segments • Therefore, no need to allocate capital to business segments in support of goodwill or intangibles • “Other” segment captures ancillary capital costs, such as: » regulation » credit rating » fu

  5. Slide 5: Economic Profit

    Economic Profit $ million $ million TDBFG 180 180 Equity raised for CT 140 acquisition 140 TDCT 100 100 TDS 60 60 TDW 20 TDWM 20 0 0 -20 -20 Q2/99 Q3/00 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Shareholder value is created when return is more than our cost of capital - Economic profit > $0 9 SEGMEN

  6. Slide 6: Momentum: Revenue and Cash Net Income

    Momentum Revenue $ Millions Top-line growth continues: $1,372 $1,388 • Revenue growth is $16 million $1,305 $1,335 $1,250 or 1.2% higher than Q1/01 • Growth of $138MM or 11.0% over the same quarter last year Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Slide 11: TDCT Momentum Cash Net Income $ Millions Strong earn

  7. Slide 7: Momentum: Operating Efficiency and Margin

    Momentum Operating efficiency1 62.5% Improvement in the operating 60.3% 59.4% efficiency ratio: 58.4% 58.2% • To 58.2% this quarter from 58.4% in Q1/00 and 62.5% a year ago Achieved expense savings • 3% expense increase versus 11% revenue growth Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 1Excludes acquisition fu

  8. Slide 8: Personal Loans and Personal Deposits

    Personal Loans (including Cards) & Mortgages 6.7% Yr 6.7% Yrover overYr Yrgrowth growth $ Billions 0.9% Qtr 0.9% Qtrover overQtr Qtrgrowth growth $100 22.0% $90 21.5% $80 21.0% $70 20.5% $60 $50 20.0% Q2/99 Q4/99 Q2/00 Q4/00 Q2/01 Volume Cdn. Bank Mkt. Share to Mar/01 Note: Data restates TD and CT a

  9. Slide 9: TD Securities: Revenue

    SEGMENT PERFORMANCE Securities Securities TD Securities: Revenue $ Millions $788 $794 $766 $650 $653 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Slide 18: TDSI 9

  10. Slide 10: TD Securities: Revenue and Trading Revenue

    Securities TD Securities: Revenue Q2/00 Q2/01 Total Revenue = $788MM Total Revenue = $766MM 7% 11% 4% 34% 25% 31% 6% 19% 9% 6% 7% 16% 20% 5% Slide 19: TDSI TD Securities: Trading Securities Revenue & Securities Gains $ million 500 Total 400 300 Trading Related Revenue 200 100 Securities Gains 0 Q2/0

  11. Slide 11: TD Securities: Cash Net Income and ROE

    Securities TD Securities Cash Net Income ROE $ Millions % 27% $236 $231 $227 23% 23% 20% 19% $179 $168 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Slide 21: TDSI SEGMENT PERFORMANCE Waterhouse 11

  12. Slide 12: TD Waterhouse Revenue and Margin Loans

    TD Waterhouse Revenue Cash Net $ Millions Income $ Millions $688 $105 $500 $519 $497 $409 $53 $58 $47 $7 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Slide 23: TD Waterhouse Margin Loans $CDN billion (at period end) $13.3 $12.5 $12.1 $9.1 $6.4 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Slide 24: T

  13. Slide 13: TD Waterhouse Group, Inc.

    TD Waterhouse Group, Inc. 2000 2001 Yr/Yr Apr 30 Jan 31 Apr 30 Change ($US) Active Accounts (000) 2,813 3,241 3,269 16 % New accounts (000) 418 160 169 (60)% Trades/day (000) 255 149 124 (51)% Online penetration 74% 74% 74% 0% Customer Assets($B) $160 $154 $138 (14)% Slide 25: TD Waterhouse SEGMENT

  14. Slide 14: TD Wealth Management Revenue and Assets

    Wealth TD Wealth Management Management Revenue Cash Net $ Millions Income $ Millions $196 $189 $189 $38 $174 $164 $33 $29 $25 $20 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Slide 27: TDWM TD Wealth Management Wealth Management Assets Under Management $ Billions 120 $112 $113 $116 $1

  15. Slide 15: Mutual Funds and Risk Management

    Wealth Mutual Funds Management WAF (TDAM) Q2/01 1.24% $ Billions WAF (TWE) Q2/01 0.71% $30 10% $25 $20 $15 5% $10 $5 $0 0% Q2/99 Q4/99 Q2/00 Q4/00 Q2/01 Canada Waterhouse Cdn. MF Industry Mkt. Share to Mar/01 Slide 29: TDWM SECOND QUARTER 2001 RISK MANAGEMENT Bank Financial Group Tom Spencer EVP, Ri

  16. Slide 16: 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 0.20 38 bps 0.00 1994 1995 1996 1997 1998 1999 2000 Q1/01 Q2/01 Notes: Excludes special general provisions and reverse repos. Slide 31: TDBFG General Reserves General Reserves General Reserves $ Millions as a % of

  17. Slide 17: 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 $400 0.4% 26 bps $300 0.3% $200 0.2% $100 0.1% $0 0.0% Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Slide 33: TDBFG Impaired Loans $ Millions $1,200 1.20% $1,000 1.0

  18. Slide 18: Telecom & Cable Loans and Market Risk

    Telecom & Cable Loans & BAs* Inv. Non-Inv. $C million Total Grade Grade Regulated Telephone 1,036 - 1,036 Unregulated CLEC - 377 377 Wireless 973 863 1,836 Other 351 593 944 Total Unregulated 1,324 1,833 3,157 Telecom Equipment 58 64 122 Non-North American Cable - 573 573 Cable/Telephony (excl. N.A.

  19. Slide 19: Canada Trust Integration Update

    SECOND QUARTER 2001 Canada Trust Integration Update Ed Clark President and COO TD Canada Trust Our Goal Integrate successfully » Achieve merger business plan » Integrate systems, products and branches » Build a better bank under the TD Canada Trust brand And we are succeeding Slide 38: TDCT Integrat

  20. Slide 20: Integration Timeline and Conversion

    Integration Timeline Q2/01 CUSTOMER ing ion s a pp r s M e uct onv od R C Pr /IV ntic e b l a C or We At Execution Phase Atlantic Branch Mergers ing T r ain O T D A Y INTERNAL Slide 39: TDCT Integration Update Conversion Core Product Mapping • Core product systems implementation » completed March 1,

  21. Slide 21: Conversion: e.Bank and Atlantic Region

    Conversion e.Bank • Integrated web and telephone banking platform » New technology deployed for phone & web • New EasyWeb & EasyLine services launched • Call Centres critical in supporting our customers » Proactively contacted CT customers during Atlantic conversion » Supported TD customers with new

  22. Slide 22: Conversion Summary and Lessons Learned

    Conversion Summary • Overall satisfied with the conversion • Appreciative of our customers’ response • Employees accomplished a huge task • Constructive feedback received from employees and customers • Avoided issues common to other conversions • AND • Lessons learned for the next wave Slide 43: TDC

  23. Slide 23: Integration Timeline and Focus Q3/Q4 2001

    Integration Timeline Q3/01- Q4/01 CUSTOMER o ns o ns rsi rsi ve ve s C on C o n r s ion ific ue ve /Pac s k/Q C on a a io ert n/S tar Alb Ma On Post-Conversion Branch Mergers SEP/01 T fits ne O e2 B e as l l D Ph yro A Pa Y INTERNAL Slide 45: TDCT Integration Update Focus Q3/Q4 2001 • Conversions «

  24. Slide 24: Consolidations and Building a Better Bank

    Consolidations Anticipated branch actions 2000 2001 2002 2003 Total Merged 13* 93 154 15 275 » 87% of the branches affected in 2001 are less than 1 Km apart » 9 branches and 40 in-store openings planned for 2001 * sold as per Competition Bureau requirements Slide 47: TDCT Integration Update Building

  25. Slide 25: Building a Better Bank: P&C Performance

    Building a Better Bank P&C Bank Q2 YTD Variance Performance Highlights 1999 2001 +/((-)) ROE 1 18% 29% 11% pts. Efficiency Ratio 1 67% 58% 9% pts. Net Income (millions) 2 $211 $538 $327 % of TDBFG Earnings 2 31% 48% 17% pts. 1. Operating basis 2. Cash basis net income Slide 49: TDCT Integration Upda

  26. Slide 26: Building a Better Bank: Customer Focus

    Building a Better Bank Customer focus Customer Satisfaction Index* 83.7 Outlook 83.5 • CSI not yet reflecting full impact of transition % • Committed to constantly 82.2 82.3 improving our customers’ experience • Lessons learned applied to next wave Q3/00 Q4/00 Q1/01 Q2/01 CSI for CT and TD branches

  27. Slide 27: Forward Looking Statements

    TD Canada Trust We are Integrating successfully » Achieving synergies faster then expected » Integrating systems, products and branches » Building a better bank under the TD Canada Trust brand Consistent Financial Results that Outperform Slide 53: TDCT Integration Update Forward Looking Statements T

  28. Slide 28: Bank Financial Group

    SECOND QUARTER 2001 Bank Financial Group 28

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