Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q3 2018 Earnings Presentation
28 slides from Toronto-dominion Bank's earnings presentation, Aug 30, 2018
Slide 1: TD Bank Group Q3 2018 Quarterly Results Presentation
TD Bank Group Q3 2018 Quarterly Results Presentation Thursday August 30, 2018
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: Business Overview
Business Overview Strong financial results Reported earnings up 12% (adjusted1 9%) Reported EPS up 13% (adjusted1 10%) Strong organic growth on higher customer engagement Completed purchase of 20 million common shares under NCIB Investing in our strategic priorities Building the Better Ban
Slide 4: The Better Bank
The Better Bank The Ready Commitment: Targeting $1 billion in community giving by 2030 The Ready Commitment targets Financial Security $1 billion by 2030 Opening doors Vibrant Planet for a more inclusive tomorrow Connected Communities Better Health Q3 Highlight: Launched The Ready Challenge Each yea
Slide 5: Q3 2018 Highlights
Q3 2018 Highlights Total Bank Reported Results (YoY) Financial Highlights $MM Reported Q3/18 Q2/18 Q3/17 EPS up 13% Revenue 9,885 9,467 9,286 Adjusted1 EPS up 10% PCL 561 556 505 Expenses 5,117 4,822 4,855 Revenue up 6% Net Income 3,105 2,916 2,769 Expenses up 5% Diluted EPS ($) 1.65 1.54 1.46 Adj
Slide 6: Canadian Retail
Canadian Retail Highlights (YoY) P&L $MM Q3/18 QoQ YoY Net income up 7% Revenue 5,799 5% 9% Revenue up 9% Insurance Claims 627 12% 21% Revenue Net of Claims1 5,172 4% 8% Loan volumes up 6% PCL 246 12% 3% Deposit volumes up 4% Expenses 2,400 8% 8% Wealth assets2 up 9% Net Income 1,852 1% 7% PCL
Slide 7: U.S. Retail
U.S. Retail Highlights US$MM (YoY) P&L US$MM (except where noted) YoY Net income up 29% (31% adjusted)1 Q3/18 QoQ YoY Adj.1 Revenue 2,156 4% 8% 8% Revenue up 8% PCL 170 6% 24% 24% Loan volumes up 4% Expenses 1,172 0% 5% 5% Deposit volumes up 9% U.S. Retail Bank Net Income 703 6% 19% 19% TD AMTD
Slide 8: Wholesale Banking
Wholesale Banking Highlights (YoY) P&L $MM Q3/18 QoQ YoY Net income down 24% Revenue 795 (9%) (12%) Revenue down 12% PCL (14) NM NM Lower trading-related revenue Expenses 518 3% 3% Net Income 223 (16%) (24%) Expenses up 3% ROE 14.0% Earnings $MM $293 $278 $267 $231 $223 Q3/17 Q4/17 Q1/18 Q2/18 Q3/
Slide 9: Corporate Segment
Corporate Segment Highlights (YoY) P&L $MM Reported Q3/18 Q2/18 Q3/17 Reported loss of $113MM Net Income (113) (163) (150) Adjusted1 loss of $109MM Higher contribution from Other Adjusted1,2 Q3/18 Q2/18 Q3/17 Net Corporate Expenses (214) (189) (166) Other 87 81 83 Non-Controlling Interests 18 18
Slide 10: Capital & Liquidity
Capital & Liquidity Highlights (YoY) Common Equity Tier 1 Common Equity Tier 1 ratio of 11.7% Q2 2018 CET1 Ratio 11.8% Leverage ratio of 4.1% Internal capital generation 43 Impact of repurchase of common shares (35) Liquidity coverage ratio of 127% Organic RWA increase and other (24) Completed purch
Slide 11: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights Gross impaired loan formations stable quarter-over-quarter and 20 year-over-year at 18 basis points 19 18 18 18 bps $1,257 $1,100 $1,189 $1,149 $1,182 $718 / 38 bps $669 / 36 bps $641 / 33 bps $648 / 34 bps $60
Slide 12: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights Gross impaired loans decreased 49 49 49 2 basis points quarter-over- 47 quarter and 4 basis points year- 45 bps over-year with contribution from all segments $2,985 $3,085 $3,048 $37 / 8 bps $37 / 8 bps $31 / 6 bps $2,993 $2,
Slide 13: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio PCL1: $MM and Ratios2 Highlights $702 PCL stable quarter-over-quarter $602 $562 $567 at 35 basis points, remaining at $183 $512 $16 cyclically low levels $132 $107 $86 $117 $256 $188 $226 $228 $210 Wholesale $244 $270 $246 $238 $219 Corporate U.S. Ret
Slide 14: Provision for Credit Losses (PCL) by Business Segment
Provision for Credit Losses (PCL)1,2 By Business Segment IAS 39 IFRS 9 Highlights PCL (C$MM) Q3/17 Q2/18 Q3/18 Both Impaired and Total Bank $ 512 $ 562 $567 Performing PCL stable Impaired $ 517 $ 526 $ 536 quarter-over-quarter Performing (5) 36 31 Canadian Retail $ 238 $ 219 $ 246 Impaired 238 219
Slide 15: Appendix
Appendix
Slide 16: Q3 2018: Items of Note
Q3 2018: Items of Note $MM EPS ($) Reported net income and EPS (diluted) 3,105 1.65 Revenue/ Expense Items of note Pre Tax After Tax EPS Segment Line Item5 Amortization of intangibles1 77 65 0.03 Corporate page 8, line 14 Charges associated with the Scottrade transaction2 18 18 0.01 U.S. Retail page
Slide 17: Canadian Retail
Canadian Retail Net Interest Margin Average Deposits $B 314 317 323 323 326 24 23 24 24 24 2.91% 2.93% 2.88% 106 107 109 110 112 2.84% 2.86% 185 186 189 190 191 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Personal Business Wealth Efficiency Ratio Average Loans $B 390 395 399 406 382
Slide 18: Canadian Retail: Wealth
Canadian Retail: Wealth Wealth Revenue $MM Canadian Retail Assets $B1 1,053 1,047 1,016 967 966 144 156 147 131 134 158 135 397 403 116 137 387 392 115 370 2 289 289 297 272 283 751 720 717 731 756 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Fee & Other Transaction NII AUA AUM 1. Can
Slide 19: U.S. Retail
U.S. Retail Net Interest Margin1 Average Deposits US$B 261 265 263 241 250 3.33% 99 109 110 109 91 3.23% 3.18% 3.19% 3.14% 65 66 65 66 65 85 85 87 88 88 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 3 Personal Business TD Ameritrade IDAs Efficiency Ratio2 Average Loans US$B 144 148 151
Slide 20: U.S. Retail: Wealth and TD Ameritrade
U.S. Retail: Wealth and TD Ameritrade TD Wealth Assets US$B1 TD Ameritrade2 – Q3 2018 TD’s share of TD Ameritrade’s net income was 65 63 US$174MM on a reported basis and US$188MM 61 59 58 on an adjusted3 basis, up 114% YoY reflecting: Contribution of Scottrade, higher interest rates, increased cli
Slide 21: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q2/18 Q3/18 Canadian Retail Portfolio $401.3 $409.1 Personal $328.5 $335.1 Residential Mortgages 190.4 191.8 Home Equity Lines of Credit (HELOC) 79.5 83.4 Indirect Auto 22.8 23.8 Unsecured Lines of Credit 9.9 9.9 Credit Card
Slide 22: Canadian Real Estate Secured Lending Portfolio
Canadian Real Estate Secured Lending Portfolio Quarterly Portfolio Volumes $B Highlights $261 $265 $267 $269 $275 Canadian RESL credit quality remains 56% 58% 59% 61% 63% strong Uninsured Uninsured and insured portfolio loan-to- Insured 44% 42% value rates stable 41% 39% 37% Q3/17 Q4/17 Q1/18 Q2/1
Slide 23: Canadian Personal Banking
Canadian Personal Banking Q3/18 Highlights Gross GIL GIL / Canadian Personal Banking Loans ($B) ($MM) Loans Credit quality remains strong Residential Mortgages $192 $241 0.13% in the Canadian Personal Home Equity Lines of Credit (HELOC) 83 124 0.15% portfolio Indirect Auto 24 59 0.25% Credit Cards
Slide 24: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q3/18 Highlights Canadian Commercial and Gross GIL GIL/ Loans/BAs Canadian Commercial and Wholesale Banking ($B) ($MM) Loans Commercial Banking1 $74 $191 0.26% Wholesale Banking portfolios Wholesale 52 - 0.00% continue to perform well Total Canadian Commer
Slide 25: U.S. Personal Banking – U.S. Dollars
U.S. Personal Banking – U.S. Dollars Q3/18 U.S. Personal Banking1 Gross Loans GIL GIL / Highlights ($B) ($MM) Loans Residential Mortgages $23 $360 1.57% Continued good asset quality Home Equity Lines of Credit (HELOC)2 9 649 7.20% in U.S. Personal Banking Indirect Auto 23 171 0.74% Credit Cards 13
Slide 26: U.S. Commercial Banking – U.S. Dollars
U.S. Commercial Banking – U.S. Dollars Q3/18 Highlights Gross Loans / GIL GIL/ U.S. Commercial Banking1 BAs ($B) ($MM) Loans Sustained good credit Commercial Real Estate (CRE) $23 $105 0.46% quality in U.S. Commercial Non-residential Real Estate 17 83 0.49% Banking Residential Real Estate 6 22 0.3
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
Slide 28: TD Bank Group Q3 2018 Quarterly Results Presentation
TD Bank Group Q3 2018 Quarterly Results Presentation Thursday August 30, 2018