Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q4 2015 Earnings Presentation
35 slides from Toronto-dominion Bank's earnings presentation, 2015
Slide 1: TD Bank Group Investor Presentation Q4 2015
TD Bank Group Investor Presentation Q4 2015
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: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 Retail Focused North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering top tier long 2 Proven Performance term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
Slide 4: TD Snapshot
TD Snapshot Our Businesses Canadian Retail Personal banking, credit cards and auto finance Small business and commercial banking Direct investing, advice-based wealth businesses, and asset management Property, casualty, life and health insurance Q4 20151 Canadian U.S. U.S. Retail (C$ except
Slide 5: TD Strategy
TD Strategy To be the Better Bank North America Top 10 Bank in North America1 Leverage platform and brand for growth One of only a few banks globally to be rated Aa1 by Moody’s2 Strong employment brand Retail Earnings Focus Leader in customer service and convenience Strong organic growth
Slide 6: Competing in Attractive Markets
Competing in Attractive Markets Country Statistics Country Statistics 11th largest economy World’s largest economy Nominal GDP of C$2.0 trillion Nominal GDP of US$17.3 trillion Population of 36 million Population of 319 million Canadian Banking System U.S. Banking System Soundest banki
Slide 7: TD in North America
TD in North America North Q4 2015 Canadian American C$ except otherwise noted Ranking5 Ranking6 Total assets $1,104B 1st 5th Total deposits $696B 2nd 6th Market capitalization $100B 2nd 6th Adjusted net income1 (trailing four quarters) $8.8B 2nd 6th Reported net income (trailing four quarters) $8.0B
Slide 8: Composition of Earnings
Composition of Earnings Adjusted Earnings1 2015 Adjusted (C$MM) Retail Earnings1,4 = 91% Adjusted Retail Earnings1,4 Wholesale Earnings $8,754 9% 91% Canadian U.S Retail2 Retail 23% 64% 4 TD AMTD3 4% $2,158 Wholesale 42% 9% 58% 2001 2015 Retail-focused earnings mix 1. See slide 4, footnote 3, for de
Slide 9: Strategic Evolution of TD
Strategic Evolution of TD INCREASING RETAIL FOCUS Became primary Completed Acquired Acquired Target issuer of transaction TD Chrysler credit card Aeroplan Visa; of strategic Waterhouse Financial portfolio & Epoch; acquired ~50% credit card TD Bank Acquired Acquired USA / Acquired Commerce Acquired a
Slide 10: Risk Management Framework
Risk Management Framework Our Risk Appetite We take risks required to build our business, but only if those risks: Fit our business strategy and can be understood and managed Do not expose the enterprise to any significant single loss events; we don’t “bet the bank” on any single acquisition, bu
Slide 11: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 Retail Focused North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering top tier long 2 Proven Performance term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
Slide 12: Stable Earnings Growth
Stable Earnings Growth Adjusted Earnings1,2 (C$MM) 8,754 8,127 20112: 7,064 7,136 Wholesale Banking 6,432 Wealth & Insurance U.S. P&C Canadian P&C 2012 – 20153: Wholesale Banking U.S. Retail Canadian Retail 2011 Segment realignment 2012 2013 2014 2015 Targeting 7-10% adjusted EPS growth1 over the me
Slide 13: Solid Total Shareholder Returns
Solid Total Shareholder Returns Total Shareholder Return1 Compounded Annual Growth Rates (CAGR) TD Canadian peer average2 North American peer average3 15.3% 13.8% 12.4% 11.8% 11.1% 10.6% 9.2% 8.5% 3.9% 0.4% 1.0% -2.7% 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years Delivering top tie
Slide 14: Strong, Consistent Dividend History
Strong, Consistent Dividend History Dividends Per Share (C$) $2.00 Q1/15: Announced $0.04 dividend increase Dividend yield: 3.9%1 $0.22 Q3/12: Increased target payout range to 40%-50%2 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend h
Slide 15: Q4 2015 Highlights
Q4 2015 Highlights Key Themes Financial Highlights $MM Adjusted1 EPS of $1.14, up 16% YoY P&L Summary Adjusted1 Adjusted1 Q4/15 Q3/15 Q4/14 Adjusted Net Income up 17% YoY Revenue2 $ 7,459 7,385 6,732 Strong results for Canadian and U.S. Retail; solid Expenses 4,480 4,261 4,188 quarter for Whol
Slide 16: Q4 2015 Segment Results Highlights
Q4 2015 Segment Results Highlights Adjusted1 net income up 10% YoY Canadian Continued good loan, deposit and wealth asset growth, higher Strong broad-based insurance earnings, good credit and expense performance Retail PCL down 12% YoY reflecting higher Commercial recoveries earnings growth
Slide 17: Q4 2015 Credit Highlights
Q4 2015 Credit Highlights Highlights PCL Ratio (bps)1 40 Ongoing good performance and volume growth across the broad 33 33 portfolio 32 29 PCL ratio increase of 7 bps largely 28 attributed to: 3 bps due to one-time provisions Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 for South Carolina floods An i
Slide 18: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank by Total Assets1 1 Top 10 Retail Focused North American Bank 6th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
Slide 19: Attractive Balance Sheet Composition
Attractive Balance Sheet Composition1 Funding Mix2 Wholesale Term Debt Assets Securitized 26% Other Deposits33 Personal Other Deposits Covered Bonds Covered Bonds Personal 25% Term Deposits 26% 23% 23% Term Deposits 8% 5% Short Term Residential Mortgages Liabilities 4 58% Short Term Liabilities4 Mor
Slide 20: Gross Lending Portfolio
Gross Lending Portfolio Balances Highlights C$B (unless otherwise noted) Q4/15 Canadian Retail Portfolio $ 355.9 Personal $ 298.6 Canadian portfolio Residential Mortgages 184.5 Home Equity Lines of Credit (HELOC) 61.2 Real estate secured lending volume up 5% YoY $246 billion portfolio (56% insur
Slide 21: Capital & Liquidity
Capital & Liquidity Highlights Basel III Common Equity Tier 11 Basel III Common Equity Tier 1 ratio 9.9% 10.1% 9.9% 9.9% Decrease QoQ driven mainly by 9.5% 9.4% Q4 restructuring charge and RWA growth Leverage ratio of 3.7% Liquidity coverage ratio of 126% Q4/14 Q1/15 Q2/15 Q3/15 Q4/15 Anno
Slide 22: Strong Focus on Risk-Adjusted Return
Strong Focus on Risk-Adjusted Return Accolades Q4 2015 Adjusted Return on Risk-Weighted Assets1 “Safest Bank in North 2.24% 2.23% America & One of the World’s 50 Safest Banks” – Global Finance Magazine 1.39% “Best Big Bank in America” – Money® Magazine “One of the World's Most TD 2 Canadian Pe
Slide 23: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 Retail Focused North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering top tier long 2 Proven Performance term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
Slide 24: Canadian Retail
Canadian Retail Consistent Strategy Adjusted Net Income1 (C$MM) Segment Realignment $5,938 $5,490 How we compete $4,681 $4,567 Legendary customer service and convenience $3,051 Relentless commitment to operational excellence The power of One TD Winning culture and team 2011 2012 2013 2014 20
Slide 25: Canadian Retail
Canadian Retail Personal Banking #1 or #2 market share in most retail products1 On average 44% longer branch hours than peers2 with nearly 430 branches offering Sunday banking Mobile banking leadership in Canada with the highest number of mobile subscribers accessing financial services 3 #1
Slide 26: U.S. Retail
U.S. Retail Consistent Strategy Adjusted Net Income1 ($MM) Segment Realignment How we compete $2,547 $2,110 Legendary service and convenience $1,852 $1,619 Grow and deepen customer relationships $1,270 Differentiated brand as the “human” bank C$ Productivity initiatives that enhance both the
Slide 27: U.S. Retail
U.S. Retail Personal & Commercial Banking Top 10 bank1 with 8MM+ customers, operating retail stores in 15 states and the District of Columbia Open longer than the competition, including Sunday banking in most markets #3 market share in NYC2 and targeting top 5 market share in all of our major
Slide 28: Wholesale Banking
Wholesale Banking Consistent Strategy Net Income1 (C$MM) How we compete $880 $873 $815 $813 Canada $650 Be a top-ranked integrated investment dealer Fully aligned with TD Bank Group partners Provide superior advice and execution U.S. Extend Canadian franchise’s goals into the U.S. 2011 2012
Slide 29: Wholesale Banking
Wholesale Banking Focus on client-driven franchise businesses Diversified business mix with a North American focus Presence in key global financial centres Extend our client-centric franchise model through superior advice and execution A North American dealer aligned with our TD partners Foc
Slide 30: Omni-Channel Comfort and Convenience
Omni-Channel Comfort and Convenience Consistent Strategy Digital Enhancements How we compete Customer-centricity allows customers to choose how, when and where they bank Easily deposit cheques as soon as Confidently deposit cheques and cash at they are received with ATMs without envelopes and have
Slide 31: Corporate & Social Responsibility
Corporate & Social Responsibility Highlights TD Friends of the Environment Foundation celebrates 25 Highest in Customer Satisfaction Among the Big Five Retail years with over C$70 million in funds disbursed in Banks in Canada by J.D. Power1 support of more than 23,000 local environmental project
Slide 32: A Principled Approach
A Principled Approach Guiding Principles Leadership Profile ■ Deliver Legendary Customer ■ Make an Impact and Value Speed Experiences ■ Build for the Future ■ Be an Extraordinary Place to Work ■ Inspire the Will to Win ■ Operate with Excellence ■ Act Decisively while Working ■ Understand Our Busines
Slide 33: TD Model Has Proven Its Resilience
TD Model Has Proven Its Resilience Simple Strategy Vision: Consistent Focus To be The Better Bank ■ Lead with service and Headwinds One of the World’s Most convenience Slowing loan Admired Companies1 growth in Canada ■ Leverage TD brand across all segments Low interest rate One of Canada’s m
Slide 34: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Grand Prix for Best Overall Investor Relations: Large Cap Email: Best Investor Relations by Sector: Financial Services tdir@td.com Best Investor Relations by a CFO: Large Cap Best Investor Relations Officer: Large Cap Website: Best Fi
Slide 35: TD Bank Group Investor Presentation
TD Bank Group Investor Presentation Q4 2015