Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q3 2018 Earnings Presentation
34 slides from Toronto-dominion Bank's earnings presentation, 2018
Slide 1: TD Bank Group Investor Presentation Q3 2018
TD Bank Group Investor Presentation Q3 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: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns2 Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Targeting 7-10% 4
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 Q3 20181 Canadian U.S. Property, casualty, life and health (C$) Retail Retail insurance Fina
Slide 5: TD Framework
TD Framework Our purpose Our vision To enrich the lives of our Be the better bank customers, communities and colleagues Our shared commitments Think like a Act like an owner Execute with Innovate Develop our customer Lead with integrity to speed and impact with colleagues Provide legendary drive bus
Slide 6: TD Strategy
TD Strategy We will be the premier Canadian retail bank, a peer-leading U.S. retail bank, and a leading Wholesale business Customer- centric experiences One TD Operational excellence Unique and inclusive Strong employee risk culture culture Customer-centric Operational Unique and Inclusive Strong Ri
Slide 7: Competing in Attractive Markets
Competing in Attractive Markets Country Statistics Country Statistics 10th largest economy World’s largest economy Nominal GDP of C$2.2 trillion Nominal GDP of US$19.5 trillion Population of 37 million Population of 323 million Canadian Banking System U.S. Banking System One of the sou
Slide 8: Top 10 North American Bank
Top 10 North American Bank North Q3 2018 Canadian American C$ except otherwise noted Ranking4 Ranking5 Total assets $1,293B 1st 5th Total deposits $839B 1st 5th Market capitalization $140.9B 2nd 6th Reported net income (trailing four quarters) $11.1B 2nd 5th Adjusted net income1 (trailing four quart
Slide 9: Diversified Business Mix
Diversified Business Mix Fiscal 2017 Reported Earnings Mix1 Three key business lines Canadian Retail robust retail banking platform in Canada with proven performance Canadian Retail U.S. Retail top 10 bank4 in 60% U.S. Retail2 26% the U.S. with significant organic growth opportunities Wholesal
Slide 10: Growing platform / North American scale
Growing platform / North American scale… Increasing Retail Focus Acquired Acquired Target Completed TD Became primary Chrysler credit card portfolio Completed strategic acquisition of Acquired Waterhouse Acquired Commerce Acquired issuer of Aeroplan Completed Privatized Financial & Epoch; and credit
Slide 11: Connected Experiences
Connected Experiences Consistent Strategy Q3 2018 Highlights How we compete ~12 MILLION ~4.5 MILLION Enabling seamless interactions ACTIVE ONLINE & ~2.9 MILLION CANADIAN MOBILE between customers and the MOBILE CUSTOMERS U.S. MOBILE USERS USERS entire organization Leveraging industry leading Expe
Slide 12: 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 13: Corporate Responsibility Performance
Corporate Responsibility Performance Highlights TD's low carbon commitment will target $100B by 2030 to support the transition to a low-carbon economy, Low Carbon Early UN PRI Top Green Bond drive innovation, accelerate renewable energy Commitment signatory underwriter targets $100B by and UNEP FI
Slide 14: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns2 Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Targeting 7-10% 4
Slide 15: Consistent Earnings Growth
Consistent Earnings Growth Targeting 7-10% adjusted EPS growth over the medium term4 Reported Earnings1,2 (C$MM) $10,517 $8,936 Wholesale Banking $8,024 U.S. Retail $7,883 Canadian Retail $6,640 $6,460 2012 2013 2014 2015 2016 2017 1. For the purpose of calculating contribution by each business segm
Slide 16: Solid Total Shareholder Returns
Solid Total Shareholder Returns Top tier total shareholder returns in 1, 3, 5 and 10 year periods1 Canadian North American Ranking2 Ranking3 One-Year 24.3% 1st 3rd Three-Year 17.7% 1st 3rd Five-Year 16.4% 1st 3rd 10-Year 13.6% 1st 1st 1. Total shareholder return (TSR) calculated based on share price
Slide 17: Strong, Consistent Dividend History
Strong, Consistent Dividend History Dividends Per Share $2.68 (C$) Q1/18: Announced $0.07 dividend increase1 Dividend yield: 3.5%2 Q3/12: Increased target $0.33 payout range to 40%-50%3 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 4 1. For
Slide 18: High Quality Loan Portfolio
High Quality Loan Portfolio Balances (C$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 Cards 18.0 17.
Slide 19: Strong Credit Quality
Strong Credit Quality GIL and PCL Ratios (bps) 83 81 78 66 63 61 60 58 58 56 50 49 50 45 43 41 39 38 37 37 34 34 35 31 2007 2008 2009 1 2010 2011 2012 2013 2014 2015 2016 2017 Q3/18 2 IFRS IFRS 9 Gross Impaired Loans / Gross Loans and Acceptances (bps) Provision for Credit Losses / Average Net Loans
Slide 20: 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 21: Q3 2018 Segment Highlights
Q3 2018 Segment Highlights Net income was $1.9 billion, up 7% YoY, on good revenue growth, partially offset by higher insurance claims and non-interest expenses Canadian PCL increased by 12% QoQ. PCL-impaired increased $7 million and PCL-performing increased $20 million, both reflecting volume g
Slide 22: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns2 Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Targeting 7-10% 4
Slide 23: Low Risk, Deposit Rich Balance Sheet
Low Risk, Deposit Rich Balance Sheet1 Funding Mix2 Wholesale Term Debt6 Trading Deposits5 10% P&C Deposits 66% Senior Unsecured MTN Personal Term Asset Backed 49% Non-Term Deposits Securities 37% 4% Wholesale Term Debt 12% Mortgage Securitization 11% Covered Bonds 25% Other Deposits3 Capital7 Person
Slide 24: Strong Capital & Liquidity Positions
Strong Capital & Liquidity Positions Common Equity Tier 11 Highlights Common Equity Tier 1 ratio of 11.7% Q2 2018 CET1 Ratio 11.8% Internal capital generation 43 Leverage ratio of 4.1% Impact of repurchase of common shares (35) Organic RWA increase and other (24) Liquidity coverage ratio of 12
Slide 25: Industry-Leading Credit Ratings
Industry-Leading Credit Ratings Issuer Ratings1 Senior Debt Legacy Senior Rating Agencies Outlook Ratings2 Debt Ratings3 S&P A Stable AA- Moody's Aa3 Stable Aa1 DBRS Aa (low) Positive AA Ratings vs. Peer Group1 S&P Senior Debt2 / HoldCo6 Rating Moody’s Senior Debt2 / HoldCo6 Rating 14- AA 18 Aa1 16
Slide 26: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering 2 Proven Performance top tier long term shareholder returns2 Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Targeting 7-10% 4
Slide 27: Canadian Retail
Canadian Retail Consistent Strategy Reported Net Income (C$MM) $6,525 $5,938 $5,988 How we compete $5,237 $4,569 Legendary personal connected customer service Focus on underrepresented products and markets $4,681 $5,490 $5,938 $5,988 $6,525 Adjusted1 The power of One TD 2013 2014 2015 2016 201
Slide 28: Canadian Retail
Canadian Retail Personal Banking #1 or #2 market share in most retail products1 On average, 37% longer branch hours than peers2 with 346 branches offering Sunday banking Mobile banking leadership in Canada with the highest number of mobile unique visitors accessing financial services3 Ranked
Slide 29: U.S. Retail
U.S. Retail Consistent Strategy Reported Net Income (US (US$MM) MM) $2,536 How we compete $2,234 $1,938 $2,007 Legendary service and convenience $1,715 Grow and deepen customer relationships Differentiated brand as the “human” bank $1,815 $1,938 $2,053 $2,234 $2,565 Adjusted1 Productivity in
Slide 30: U.S. Retail
U.S. Retail Personal & Commercial Banking Top 10 bank1 with over 9MM customers, operating retail stores in 15 states and the District of Columbia Open longer than the competition, including Sunday banking in most markets #3 market share in NYC2 and targeting top 5 market share in all of our ma
Slide 31: Wholesale Banking
Wholesale Banking Consistent Strategy Net Income (C$MM) $1,039 How we compete $920 $873 $813 Strengthen position to be the top $650 dealer in Canada and grow U.S. dollar business Provide superior advice and execution Leverage TD's businesses Maintain a prudent risk profile 2013 2014 2015 201
Slide 32: Wholesale Banking
Wholesale Banking Positioned for growth Be the top ranked investment dealer in Canada with global execution capability by increasing our origination footprint and competitive advantage with Canadian clients #1 or #2 ranking in key domestic categories, including equity block trading and equity op
Slide 33: 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 34: TD Bank Group Investor Presentation
TD Bank Group Investor Presentation Q3 2018