Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — Q4 2005 Earnings Presentation
27 slides from Toronto-dominion Bank's earnings presentation, Nov 23, 2005
Slide 1: Q4/05 Investor Presentation
Q4/05 Investor Presentation November 23, 2005
Slide 2: Forward-looking statements
From time to time, the Bank makes written and oral forward-looking statements, including in this presentation, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission (SEC), and in other communications. All such statements are made pursuant to the "safe harbour" prov
Slide 3: Overview
Q4 2005 EPS reported basis (diluted) $0.82 Adjusted diluted EPS (before amortization of intangibles and items of note)(1) $1.06 Segment net income before amortization of intangibles (where applicable): Canadian P&C Banking = $443MM, up 16% YoY, up 2% QoQ US P&C Banking = $69MM, Flat QoQ Wealth Manag
Slide 4: Overview: 2005 versus 2004
Overview 2005 versus 2004 2004 '05 vs '04 2005 Revenue PCL Expenses Pre-Tax Income Net Income Average Shares Outstanding (diluted) EPS (diluted) $ 10,734 336 7,081 3,317 $ 2,485 659.4 $ 3.77 1. A listing of the items of note for 2004 and 2005 and a full reconciliation to reported basis (GAAP) result
Slide 5: Business Segment Earnings Mix
Business Segment Earnings Mix P&C Dom Wealth TDW USA TD BNK Wholesale Q1 2005 1702 309 123 158 551 TD Canada Trust TD Securities TDW Canada Based on F2005 business segment earnings before amortization of intangibles and applicable items of note for TD Securities TDW USA TD Banknorth Canadian Retail
Slide 6: Q4/05 Earnings Including Items of Note
Amortization of intangibles (after-tax) 0.12 Reported basis net income applicable to common shares $ 0.82 86 $589 $ EPS Net income before amortization of intangibles $ 0.94 $675 Pre-Tax Post-Tax EPS $ MM $ MM TD Waterhouse reorganization tax charge $ (0.19) $ (138) Preferred share redemption premium
Slide 7: Update: Ameritrade and Hudson Transactions
Update: Ameritrade and Hudson Transactions TD Ameritrade Expected closing of the TDW USA - Ameritrade transaction January 2006 Revised estimate of gain on sales is approximately US$ 900 million, net of tax, versus US$ 725 million at announcement June 22, 2005 Sensitivity in gain to US$ 1 movement in
Slide 8: Q4/05 Operating Performance
Q4/05 Operating Performance Wealth Management Wholesale Banking U.S. Personal & Commercial Banking Canadian Personal & Commercial Banking
Slide 9: TD Canada Trust: Total Revenue
TD CT Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Revenue 751 733 775 774 813 1250 1305 1335 1372 1388 1432 1447 1451 1394 1458 1465 1456 1420 1489 1490 1515 1521 1570 1614 166
Slide 10: TD Canada Trust: Net Interest Margin
TD CT Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Money in 0.0201 0.0194 0.0192 0.0191 0.0183 0.0184 0.0177 0.0172 0.0173 0.0175 0.0171 0.0168 0.017 Money out 0.0164 0.0166 0.0165 0.0162 0.0161 0.0159 0.0161 0.016 0.0159 0.0157 0.0157 0.0159 1.59000000013148E-02 NIM
Slide 11: Provision for Credit Loss (PCL)
Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 PCL 92 100 87 100 93 99 86 89 99 105 85 83 81 85 88 89 92 Commercial 3 7 12 5 14 10 7 20 1 2 9 7 10 3 1 5 Small business 12 21 20 22 10 8 9 9 Collections 23 15 Commercial -16 -3 1 7 -2 -4 Small busi
Slide 12: Expenses & Efficiency Ratio
TDCT Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 Q2 01 Q3 01 Q4 01 Q1 02 Q2 02 Q3 02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Expenses 809 814 820 828 834 897 908 872 864 879 886 865 852 873 873 884 909 913 944 924 925 956 968 Total Expenses $MM Expenses before amortization of
Slide 13: Net Income & Return on Invested Capital
NI Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 ROIC 0.033 0.019 0.065 0.036 0.021 0.169 0.178 0.182 0.193 0.188 0.198 0.2 0.206 0.211 0.23 0.225 0.233 0.234 TDCT Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q4/01 Q1
Slide 14: Market Share Trend
Market Share Trend TD CT Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Money Out 0.2093 0.2091 0.2067 0.205 0.2038 0.2037 0.2034 0.2013 Deposits 0.2122 0.2116 0.212 0.2117 0.2126 0.2139 0.2146 Term Deposits 0.2031 0.2024 0.2031 0.2046 0.2043 0.2055 Total personal loan
Slide 15: 2-Year Overview
2-Year Overview '05 vs '04 2004 Revenue PCL Expenses Pre-Tax Income Net Income $ 6,220 $ 6,703 373 3,650 2,197 $ 1,450 8 % - - % 3 % 16 % 17 % Before amortization of intangibles 2005 373 3,773 2,557 $ 1,702 Canadian Personal & Commercial 2-year CAGR Revenue-Expense GAP 4.4% 17.1%
Slide 16: Q4/05 Operating Performance
Canadian Personal & Commercial Banking Canadian Personal & Commercial Banking Q4/05 Operating Performance Wealth Management Wholesale Banking U.S. Personal & Commercial Banking
Slide 17: TD Banknorth: US P&C Segment
TD Banknorth: US P&C Segment U.S Personal & Commercial 5.5% Return on Invested Capital $ 5.0B Average Invested Capital $ (43) Economic profit (loss) $ 70 Net income 58 Non-controlling interest 67 Income taxes 195 Net income before taxes 250 Non-interest expenses 4 Provision for credit losses 449 Tot
Slide 18: Q4/05 Operating Performance
Canadian Personal & Commercial Banking Canadian Personal & Commercial Banking Q4/05 Operating Performance Wealth Management Wholesale Banking U.S. Personal & Commercial Banking
Slide 19: Wealth Management: Total Revenue & Expenses
Total Revenue Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 TDW 325 366 360 368 548 688 500 519 497 409 367 343 397 379 355 345 367 292 390 406 436 704 616 599 663 686 675 722 39
Slide 20: Wealth Management: Net Income & ROIC
NI Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Wealth 81 81 60 45 78 88 73 85 NI Q1/99 Q2/99 Q3/99 Q4/99 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q2/01 Q3/01 Q4/01 Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 TDAM -39 -79 -77 -86 -50 -75 -85 -86 -66 ROIC 0
Slide 21: Wealth Management: Market Share Trend
Market Share Trend Long-term funds Wealth Management TD CT Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 LT Ind 0.054 0.0558 0.0566 0.0578 0.0587 0.0611 0.0628 0.0652 LT Banks 0.196 0.1975 0.1973 0.1983 0.2012 0.2049 0.2074 0.2104 MF Ind 0.2003 0.201 0.1984 0.1965 0.1971 MF Banks 0.2608 0.2604 0.2
Slide 22: Q4/05 Operating Performance
Canadian Personal & Commercial Banking Canadian Personal & Commercial Banking Q4/05 Operating Performance Wealth Management Wholesale Banking U.S. Personal & Commercial Banking
Slide 23: Wholesale Banking: Total Revenue & Expenses
Wholesale Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Revenue 934 635 531 568 585 478 477 496 615 582 535 464 570 604 489 478 Wholesale Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Expenses 343 300 307 323 352 343 340 261
Slide 24: Corporate Lending Net Exposure and Credit Protection
Net Exposure1 (C$ Billion) Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 Investment Grade Loans and BAs 23.4 21.7 18.2 17.4 16.2 16.8 16.6 16.4 16.3 Non-Investment Grade Loans and BAs 5.2 4.9 4.4 4.7 4.7 4.7 4.4 4.8 5.1 Credit Protection Total exposure 2.9 2.8 5.5 Credit Protection drawn 1.1
Slide 25: Wholesale Banking: Net Income & ROIC
NI Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 TDS 206 35 -542 -356 152 151 105 121 176 162 128 122 141 165 130 115 -133 NI Q1/02 Q2/02 Q3/02 Q4/02 Q1/03 Q2/03 Q3/03 Q4/03 Q1/04 Q2/04 Q3/04 Q4/04 Q1/05 Q2/05 Q3/05 Q4/05 ROIC 19.6 2.9 -0.518 -0.312
Slide 26: Additional Information About the Ameritrade Transaction
Additional Information About the Ameritrade Transaction The subject matter relating to the Ameritrade transaction discussed in the preceding slides is addressed in the preliminary proxy statement filed by Ameritrade on November 23, 2005 with the SEC. We urge you to read the preliminary proxy stateme
Slide 27: Q4/05
Q4/05 Investor Presentation November 23, 2005
Toronto Dominion Bank — Q4 2005 Earnings Presentation on 6ix