Toronto-Dominion Bank · TSX:TD
Toronto-Dominion Bank — TD Bank Financial Group — Q4 2004 Earnings Presentation
16 slides from Toronto-Dominion Bank's earnings presentation, Nov 24, 2004
Slide 1: Q4 2004 Conference Call
Q4 2004 Conference Call November 24, 2004 Forward-Looking Statements From time to time, TD makes written and oral forward-looking statements, including in this presentation, in filings with Canadian regulators or the U.S. Securities and Exchange Commission (SEC), and in other communications. All suc
Slide 2: Q4 2004 Operating Performance: Total Bank Overview
Q4 2004 Operating Performance Dan Marinangeli, CFO Total Bank Overview Q4 2004 • EPS reported basis (diluted) $0.90 • EPS before amortization of intangibles (diluted) $1.04 • Segment net income before amortization of intangibles: – Personal & Commercial Banking = $390MM, up $63MM or 19% YoY – Wealth
Slide 3: Q4 2004 Earnings Reconciliation; Overview 2004 & 2003
Total Bank Q4 2004 Earnings Reconciliation Q4 2004 Amortization of Intangibles: EPS Reported basis net income applicable to common shares $ 595MM $ 0.90 Amortization of intangibles (after-tax) 92MM 0.14 Earnings before the amortization of intangibles $ 687MM $ 1.04 Q4 2004 Includes the Following Ite
Slide 4: Personal & Commercial Banking: Total Revenue and Net Interest Margin
Q4 2004 Personal & Commercial Banking Operating Performance 7 Personal & Commercial Banking Total Revenue and Net Interest Margin Net Interest Margin (%) Highlights 3.18% 3.14% • Total revenue $1.6 billion: 3.08% 3.05% 3.03% – Up 8.3% from Q4/03 and 2.8% from Q3/04 – Liberty and Laurentian totaled $
Slide 5: Net Interest Margin; Provision For Credit Loss
Personal & Commercial Banking Net Interest Margin Net Interest Margin (NIM) (%) Highlights NIM on average earning assets • Margin on average earning assets is up 2 bps from last quarter 3.18% 3.14% 3.08% 3.03% 3.05% • Sequential margin improvement as a result of improved deposit margins NIM on depos
Slide 6: Total Expenses and Efficiency Ratio; Net Income and ROIC
Personal & Commercial Banking Total Expenses and Efficiency Ratio Efficiency Ratio (%) Highlights 59.4% • Total expenses before the amortization of 58.2% 58.0% 58.2% intangibles $944 million: 57.8% – Up 8.1% from Q4/03 and 3.4% from Q3/04 – Liberty and Laurentian up $35 million YoY Total Expenses (M
Slide 7: Volume and Market Share: Real Estate Secured Loans & Other Personal Loans
Personal & Commercial Banking Volume and Market Share: Real Estate Secured Loans1 & Other Personal Loans2 Volume $B Market Share % 140 26 105 24 Other Personal Loans 70 Real Estate Secured Lending 22 35 Total Market Share 20 OPL OPL Volume Growth33 Volume Growth RESL RESL Volume Growth33 Volume Grow
Slide 8: Volume and Market Share: Business Loans and Deposits
Personal & Commercial Banking Volume and Market Share: Business Loans and Deposits Volume $B Market Share % 50 24 22 40 20 Business Deposits 18 30 Total Total Volume Volume Growth Growth Q4/03 Q4/03 to to Q4/04 Q4/04 == 10.6% 10.6% 16 Q3/04 Q3/04 to to Q4/04 Q4/04 == 3.4% 3.4% Small Business Loan Ma
Slide 9: Wealth Management: Total Revenue and Expenses
Wealth Management Total Revenue and Expenses TD Wealth Management Highlights TD Waterhouse $708 • Total revenue down 2.7% versus Q3/04 to $675 $633 $603 million: $620 $603 – QoQ TDW trades per day down 5% $253 $235 – TDW margin loans down 8% $223 $244 $251 • Total expenses before the amortization of
Slide 10: TD Waterhouse; Mutual Funds - Total Industry
Wealth Management TD Waterhouse 2003 2004 Yr/Yr Q4 Q3 Q4 Change Active Accounts (000)* 3,060 3,083 3,031 (1)% New Accounts (000) 74 70 67 (9)% Trades/Day (000) 111 87 83 (25)% Margin Loans (C$B) $5.2 $6.3 $5.8 12% Marketing Spend (C$MM) $19 $25 $19 -% Margin before marketing expense 32.8% 25.5% 22.3
Slide 11: Wholesale Banking: Total Revenue and Expenses
Q4 2004 Wholesale Banking Operating Performance 21 Wholesale Banking Total Revenue and Expenses Revenue and Expenses1 Highlights $620 • Revenue of $468 million down 13.3% $587 versus Q3/04 and 6.6% versus Q4/03 $540 $501 • Expenses down 23.2% and 19.2% versus $468 Q3/04 and Q4/03 respectively $352 $
Slide 12: Wholesale Banking: Core Portfolio; Net Income and ROIC
Wholesale Banking Core Portfolio Net Exposure1 (C$ Billion) Highlights • Net Exposure1 down $7.7B or 27% YoY $28.6 • Quality of the portfolio remains very high $26.6 with 78% investment grade $5.2 $22.6 $4.9 $22.1 $20.9 $4.4 • Credit protection is included in PCL for $4.7 $4.7 wholesale – No impaire
Slide 13: Wholesale Banking: Value at Risk
Wholesale Banking Value at Risk $0 ($5) ($10) ($15) ($20) ($25) Q1/04 Q2/04 Q3/04 Q4/04 • TDBFG average Value-at-Risk (VaR) for Q4 FY ‘04 was $8.2MM • Daily trading losses did not exceed VaR during Q4 FY ‘04 25 Wholesale Banking Distribution of Daily Capital Markets Related Revenue for Q4/04 14 13 1
Slide 14: Corporate: Decomposition of Major Items
Q4 2004 Corporate 27 Corporate Decomposition of Major Items Corporate segment includes (after-tax): Q4/04 Non-core lending portfolio $ 124 Interest on income tax refund 18 Other (including litigation reserve of $38MM) 0 Securitization gain (loss) (1) Unallocated corporate expenses (9) Impact of hedg
Slide 15: Corporate: Non-Core Lending Portfolio
Corporate Non-Core Lending Portfolio Exposure (C$ Billion) Loans & BAs (C$ Billion) 17.0 13.8 9.3 9.0 10.9 7.2 8.4 8.0 6.2 6.5 6.4 6.9 4.2 5.0 5.0 6.0 4.9 3.3 4.1 2.6 8.0 3.0 1.8 3.1 2.0 3.1 5.4 2.4 1.8 1.2 4.0 3.0 2.0 2.9 1.2 2.4 1.9 1.4 1.2 1.3 0.9 1.0 0.6 1.1 0.9 0.8 0.6 0.3 Q1/03 Q2/03 Q3/03 Q4/
Slide 16: Q4 2004 Conference Call
Q4 2004 Conference Call November 24, 2004
TD Bank Financial Group — Q4 2004 Earnings Presentation on 6ix