Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Financial Group — Investor Presentation (April 2008)
22 slides from Toronto-dominion Bank's investor presentation, April 2008
Slide 1: Caution regarding forward-looking statements
Investor Presentation Tim Thompson, SVP Investor Relations April 2008 John van Boxmeer, AVP Treasury and Balance Sheet Management Caution regarding forward-looking statements From time to time, the Bank makes written and oral forward-looking statements, including in this presentation, in other filin
Slide 2: Overview
Overview n Canada: Best Economic Fundamentals of G7 o Overview of TD Bank Financial Group p Capital and Balance Sheet Management 3 n Canada: Best Economic Fundamentals of G7 o Overview of TD Bank Financial Group p Capital and Balance Sheet Management 4
Slide 3: Attractive Canadian Market
Attractive Canadian Market Canada 20031 20082 Real GDP 2.8% 1.5 % Real GDP/capita $C 37.1K $C 44.1K Unemployment Rate 7.4% 5.8% Fiscal position (% of GDP) Surplus +0.6% Surplus +0.3% Current Account Position Surplus +1.6% Nil Inflation 3.0% 1.8% Fundamentals Fundamentalsbest bestofofG7 G7 1 The Econ
Slide 4: TD Bank Financial Group in Perspective
TD Bank Financial Group in Perspective Canadian North American TDBFG Peers2 Peers3 Q4 2007 Total Assets US$444B 2nd 7th Q4 2007 Total Deposits US$291B 3rd 8th Dec. 31/07 Market Cap US$51B 2nd 9th 2007 Adj. Net Income US$4.4B1 2nd 8th Q4 2007 Tier 1 Capital % 10.3% 1st 1st Q4 2007 avg. # of FTE ~51,0
Slide 5: Business Strategy
Business Strategy Build Buildfranchise franchisebusinesses businesses Focus Focusononthe thecustomer customer relentlessly relentlessly AA growth growth Grow Growwithout withoutextending extending company company that that out outthe therisk riskcurve curve performs performs consistently consistentl
Slide 6: TD Bank Financial Group: Main Businesses
TD Bank Financial Group: Main Businesses Fiscal 2007 Adjusted Earnings Total Revenue Breakdown1 C$14.3B C$4.2B Wealth Management 18% U.S. TDW Retail Wealth Canada TD AMTD 6% 15% Management Canadian Retail 12% 15% 65% U.S. P&C 9% U.S. P&C Canadian P&C 13% Canadian P&C 55% 53% Wholesale Wholesale 20%
Slide 7: Industry Leading Earnings Growth
Industry Leading Earnings Growth Year-Over-Year Total Bank Earnings Growth1 24.1% 17.3% Cdn Peers2 8.6% Cdn Peers (incl. 2007 Write-downs)4 -14.9% U.S.Peers3 -41.2% U.S. Peers (incl. 2007 Write-downs)5 2003 2004 2005 2006 2007 No NoReported ReportedWrite-downs Write-downsdue duetotothe the“Credit “C
Slide 8: Complementary Business Models and Strengths
Complementary Business Models and Strengths • Product suite expansion • Commercial/Wealth/Wholesale • Asset and liability management • Best-in-class platform • Asset gathering • Strong national brand • Integration experience • Organic asset gathering strategy • Efficiency focus • Deposit growth plat
Slide 9: Capital and Balance Sheet Management
n Canadian economy highlights o Overview of TD Bank Financial Group p Capital and Balance Sheet Management 17 Capital and Balance Sheet Management “Treasury does not have the authority not to hedge” Transfer pricing of costs to products groups including term structure, optionality and liquidity
Slide 10: Strong Capital Base
Strong Capital Base 15.1% (January 31, 2008: Basel II) 14.2% Tier 1 Capital 13.1% 13.0% Common equity $23,252 Preferred shares 1,425 Non-controlling interests in subsidiaries 20 Innovative instruments 1,739 Goodwill and intangibles in excess of 5% limit (7,967) Net unrealized foreign currency transl
Slide 11: Disciplined Risk Management Approach
Disciplined Risk Management Approach Enterprise-wide risk management policies and practices Regular review, evaluation, and approval ̶ Executive Committees ̶ Risk Committee of the Board Integrated enterprise-wide risk monitoring and reporting ̶ To senior management and Board of Directors Ris
Slide 12: Approach to Funding
Approach to Funding Minimal reliance on wholesale funding historically Large user of securitization program, primarily via Canada Mortgage Bond (CMB) TD continues to grow, including via acquisition Market appetite for asset backed product has shrunk TD’s wholesale needs have outgrown Canad
Slide 13: Appendices
Appendices Canadian Economy TD Bank Financial Group: Business Segments Summarized Financial Statements Credit and Balance Sheet Management 25 Attractive Canadian Market 2008 Canada U.S. Real GDP Forecast 1.5 % 1.2% Real GDP/capita* $C 44.1K $C 52.9K Unemployment Rate 5.8% 4.8% Fiscal positio
Slide 14: Canada: Great Fundamentals
Canada: Great Fundamentals n Record High 74 Per cent CANADIAN EMPLOYMENT & UNEMPLOYMENT RATE Per cent 12 Employment and 73 Employment rate (left scale) 11 72 10 Record Low 71 70 9 Unemployment 69 68 8 7 67 Unemployment rate (right scale) 6 66 65 5 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 S
Slide 15: Canadian Structural Advantages
Canadian Structural Advantages CANADIAN FEDERAL FINANCES n Canadian Fiscal 30 C$ Billions % of GDP 80 Balances in Great 20 70 10 60 Shape 0 50 -10 40 -20 30 -30 20 Federal Surplus/Deficit (left scale) -40 Net Federal Gov't Debt (right scale) 10 -50 0 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 0
Slide 16: Canadian Personal and Commercial Banking
Canadian Personal and Commercial Banking Revenues (Millions of Canadian Dollars) 2007 2006 2005 z Personal deposits $2,353 $2,219 $2,000 z Consumer lending 1,714 1,459 1,262 z Business banking 1,654 1,541 1,441 z Real estate secured lending 1,260 1,109 912 z Insurance, net of claims 1,013 911 835 z
Slide 17: Canadian Retail: Sustained Revenue Growth
Canadian Retail1: Sustained Revenue Growth2 32% 131% 71% 103% higher 11.8% higher higher higher 11.6% 8.3% 6.3% 6.8% 5.1% 6.1% 3.0% Canadian Canadian Canadian Canadian Peers3 Peers3 Peers3 Peers3 F’05 vs. F’04 F’06 vs. F’05 F’07 vs. F’06 Q1/08 vs. Q1/07 1. Canadian Retail includes Canadian Personal
Slide 18: Wholesale Banking
Wholesale Banking Revenues (Millions of Canadian Dollars) 2007 2006 2005 z Corporate banking $ 337 $ 287 $ 266 z Investment and capital markets 1,793 911 1,467 z Equity investments 364 213 255 Total $2,494 $2,271 $1,988 Net Income – Adjusted1 $824 $664 $551 Low Lowcredit creditrisk riskprofile profi
Slide 19: U.S. Personal and Commercial Banking
U.S. Personal and Commercial Banking: TD Banknorth Revenue Canadian Dollars U.S. Dollars (Millions of Dollars) 2007 2006 2005 2007 2006 2005 z Community Banking $1,810 $1,644 $921 $1,631 $1,443 $756 z Insurance 62 62 38 56 54 31 z Wealth Management 76 74 45 68 65 37 Total $1,948 $1,780 $1,004 $1,755
Slide 20: Summarized Income Statement
Summarized Income Statement ($ Millions) 2007 2006 Net interest income $6,924 $6,371 Other income 7,357 6,821 Total revenue $14,281 $13,192 Dilution gain on investments, net of costs - 1,559 Provision for credit losses 645 409 Non-interest expense 8,975 8,815 Net income before provision for income t
Slide 21: Strong Asset Quality Combined with Adequate Reserves
Strong Asset Quality Combined with Adequate Reserves 1.00% 500.0% Impaired Loans as % of Net Loans 0.90% 450.0% Allowance for Credit Losses as % of 0.80% 400.0% Gross Impaired Loans 0.70% 350.0% 0.60% 300.0% 0.50% 250.0% 173.5% 0.40% 200.0% 0.30% 150.0% 0.20% 0.27% 100.0% 0.10% 50.0% 0.00% 0.0% Q1/0
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