Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — TD Bank Group — Q2 2018 Earnings Presentation

28 slides from Toronto-dominion Bank's earnings presentation, May 24, 2018

  1. Slide 1: TD Bank Group Q2 2018 Quarterly Results Presentation

    TD Bank Group Q2 2018 Quarterly Results Presentation Thursday May 24, 2018

  2. 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

  3. Slide 3: Business Overview

    Business Overview Strong financial results  Reported earnings up 17% (adjusted 20%)1  Reported EPS up 18% (adjusted 21%)1  Good results across all our businesses Investing in our strategic priorities  Evolving our distribution network  Delivering richer personal and connected omni-channel exper

  4. Slide 4: The Better Bank

    The Better Bank Our Purpose: To enrich the lives of our customers, communities and colleagues 4

  5. Slide 5: Q2 2018 Highlights

    Q2 2018 Highlights Total Bank Reported Results (YoY) Financial Highlights $MM Reported Q2/18 Q1/18 Q2/17 EPS up 18% Revenue 9,467 9,360 8,473  Adjusted EPS up 21%1 PCL 556 693 500 Expenses 4,822 4,846 4,786 Revenue up 12% Net Income 2,916 2,353 2,503  Revenue (TEB) up 6% Diluted EPS ($) 1.54 1.24

  6. Slide 6: Canadian Retail

    Canadian Retail Highlights (YoY) P&L $MM Q2/18 QoQ YoY Net income up 17% Revenue 5,512 (1%) 7% Revenue up 7% Insurance Claims 558 (3%) 4% Revenue Net of Claims1 4,954 0% 8%  Loan volumes up 6% PCL 219 (19%) (7%)  Deposit volumes up 6% Expenses 2,232 (3%) 1% Net Income 1,833 4% 17% NIM of 2.91% up

  7. Slide 7: U.S. Retail

    U.S. Retail Highlights US$MM (YoY) P&L US$MM (except where noted) YoY Net income up 21% (30% adjusted)1 Q2/18 QoQ YoY Adj.1 Revenue 2,064 (1%) 9% 9% Revenue up 9% PCL 161 (17%) 41% 41%  Loan volumes up 5% Expenses 1,167 2% 7% 6%  Deposit volumes up 8% U.S. Retail Bank Net Income 663 (1%) 20% 21% T

  8. Slide 8: Wholesale Banking

    Wholesale Banking Highlights (YoY) P&L $MM Q2/18 QoQ YoY Net income up 8% Revenue 872 0% 7% Revenue up 7% PCL 16 nm nm  Higher trading-related revenue Expenses 501 (2%) 4% Net Income 267 (4%) 8% Expenses up 4% ROE 18.7% Earnings $MM $293 $278 $267 $248 $231 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 NM: Not mea

  9. Slide 9: Corporate Segment

    Corporate Segment Highlights (YoY) P&L $MM Reported Q2/18 Q1/18 Q2/17 Reported loss of $163MM Net Income (163) (634)2 (160)  Adjusted1 loss of $90MM  Net corporate expenses up 2% Adjusted1 Q2/18 Q1/18 Q2/17  Higher contribution from Other Net Corporate Expenses (189) (198) (186) Other 81 67 56 No

  10. Slide 10: Capital & Liquidity

    Capital & Liquidity Highlights (YoY) Common Equity Tier 1 Common Equity Tier 1 ratio of 11.8% Q1 2018 CET1 Ratio 10.6% Leverage ratio of 4.1% Internal capital generation 37 Regulatory floor RWA decrease 120 Liquidity coverage ratio of 123% Organic RWA increase and other (34) Q2 2018 CET1 Ratio 11.8%

  11. Slide 11: Gross Impaired Loan Formations

    Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights  Gross impaired loan formations decreased quarter-over-quarter 20 and stable year-over-year 19 19 18 18 bps $1,257 $1,154 $1,189 $1,149 $1,100 $718 / 38 bps $620 / 33 bps $669 / 36 bps $648 / 34 bps $601 / 32 bp

  12. Slide 12: Gross Impaired Loans (GIL)

    Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights 53  Gross impaired loans decreased 49 49 49 quarter-over-quarter and year- 47 bps over-year $3,290  The $55MM decrease in the $3,085 quarter is due to: $59 / 13 bps $2,985 $3,048 $37 / 8 bps $2,993  Continued strong credit $

  13. Slide 13: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) By Portfolio PCL1: $MM and Ratios2 Highlights $702  PCL decreased $140MM or 9 $602 $562 basis points quarter-over- $183 $518 $512 $16 quarter driven by: $132 $117  Seasonal trends in the U.S. $117 $86 credit card and indirect auto $256 portfolios $226 $170 $188 $2

  14. Slide 14: Provision for Credit Losses (PCL) By Business Segment

    Provision for Credit Losses (PCL)1,2 By Business Segment IAS 39 IFRS 9 Highlights PCL (C$MM) Q2/17 Q1/18 Q2/18  Impaired PCL decrease Total Bank $ 518 $ 702 $ 562 quarter-over-quarter reflects: Impaired $ 451 $ 566 $ 526  Continued strong credit Performing 67 136 36 performance in Canadian Canadia

  15. Slide 15: Appendix

    Appendix

  16. Slide 16: Q2 2018: Items of Note

    Q2 2018: Items of Note MM EPS Reported net income and EPS (diluted) $2,916 $1.54 Pre Tax After Tax Revenue/ Expense Items of note EPS Segment (MM) (MM) Line Item4 Amortization of intangibles1 86 73 0.04 Corporate page 8, line 12 Charges associated with the Scottrade transaction2 77 73 0.04 U.S. Reta

  17. Slide 17: Canadian Retail

    Canadian Retail Net Interest Margin Average Deposits $B 314 317 323 323 305 24 23 24 24 25 2.91% 107 109 110 2.88% 99 106 2.84% 2.86% 2.81% 182 185 186 189 190 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Personal Business Wealth Efficiency Ratio Average Loans $B 382 390 395 399 376 6

  18. Slide 18: Canadian Retail: Wealth

    Canadian Retail: Wealth Wealth Revenue $MM Canadian Retail Assets $B1 1,053 1,016 947 967 966 144 147 128 131 134 158 404 397 392 137 2 387 116 115 370 136 279 283 289 289 272 720 717 751 731 683 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Fee & Other Transaction NII AUA AUM 1. Canad

  19. Slide 19: U.S. Retail

    U.S. Retail Net Interest Margin1 Average Deposits US$B 261 265 245 241 250 3.23% 3.18% 3.19% 95 99 109 110 3.14% 91 3.05% 66 65 66 65 66 85 85 85 87 88 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 3 Personal Business TD Ameritrade IDAs Efficiency Ratio2 Average Loans US$B 144 148 151

  20. Slide 20: U.S. Retail: Wealth and TD Ameritrade

    U.S. Retail: Wealth and TD Ameritrade TD Wealth Assets US$B1 TD Ameritrade2 – Q2 2018 TD’s share of TD Ameritrade’s net income was 63 65 US$107MM on a reported basis and US$154MM 60 61 59 on an adjusted3 basis, up 88% YoY reflecting:  Contribution of Scottrade, higher asset-based revenue, increased

  21. Slide 21: Gross Lending Portfolio

    Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q1/18 Q2/18 Canadian Retail Portfolio $395.6 $401.3 Personal $325.3 $328.5 Residential Mortgages 190.6 190.4 Home Equity Lines of Credit (HELOC) 76.8 79.5 Indirect Auto 22.5 22.8 Unsecured Lines of Credit 9.9 9.9 Credit Card

  22. Slide 22: Canadian Real Estate Secured Lending Portfolio

    Canadian Real Estate Secured Lending Portfolio Quarterly Portfolio Volumes $B Highlights $256 $261 $265 $267 $269 Canadian RESL credit quality remains strong 53% 56% 58% 59% 61% Uninsured  Gross impaired loan formations and gross Insured impaired loans reduced year-over-year 47% 44% 42% 41% 39%  P

  23. Slide 23: Canadian Personal Banking

    Canadian Personal Banking Q2/18 Highlights Gross GIL GIL / Canadian Personal Banking1  Credit quality remains strong Loans ($B) ($MM) Loans Residential Mortgages 190 253 0.13% in the Canadian personal Home Equity Lines of Credit (HELOC) 80 114 0.14% portfolio Indirect Auto 23 60 0.26% Credit Cards

  24. Slide 24: Canadian Commercial and Wholesale Banking

    Canadian Commercial and Wholesale Banking Q2/18 Canadian Commercial and Gross Highlights GIL GIL/ Loans/BAs Wholesale Banking1 ($B) ($MM) Loans  Canadian commercial and Commercial Banking2 73 175 0.24% Wholesale Banking portfolios Wholesale 49 0 0.00% continue to perform well Total Canadian Commerc

  25. Slide 25: U.S. Personal Banking – U.S. Dollars

    U.S. Personal Banking – U.S. Dollars Q2/18 U.S. Personal Banking1 Gross Loans GIL GIL / Highlights ($B) ($MM) Loans Residential Mortgages 22 366 1.63%  Continued good asset quality Home Equity Lines of Credit (HELOC)2 10 663 6.96% in U.S. personal Indirect Auto 22 173 0.77% Credit Cards 12 217 1.78

  26. Slide 26: U.S. Commercial Banking – U.S. Dollars

    U.S. Commercial Banking – U.S. Dollars Q2/18 Highlights Gross Loans / GIL GIL/ U.S. Commercial Banking1 BAs ($B) ($MM) Loans  Sustained good credit Commercial Real Estate (CRE) 23 114 0.50% quality in U.S. Commercial Non-residential Real Estate 17 90 0.53% banking Residential Real Estate 6 24 0.40%

  27. Slide 27: Investor Relations Contacts

    Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Website: www.td.com/investor

  28. Slide 28: TD Bank Group Q2 2018 Quarterly Results Presentation

    TD Bank Group Q2 2018 Quarterly Results Presentation Thursday May 24, 2018

TD Bank Group — Q2 2018 Earnings Presentation on 6ix