Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q1 2017 Earnings Presentation
27 slides from Toronto-dominion Bank's earnings presentation, Mar 2, 2017
Slide 1: TD Bank Group Q1 2017 Quarterly Results Presentation
TD Bank Group Q1 2017 Quarterly Results Presentation Thursday March 2, 2017
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: Overview
Overview Strong financial performance Earnings growth of 14% year over year EPS growth of 13% year over year Announced 5 cent increase in dividend paid per share1 Announced an NCIB for up to 15 million common shares, subject to regulatory approval Good business fundamentals driving growth Co
Slide 4: Q1 2017 Highlights
Q1 2017 Highlights Financial Highlights $MM Total Bank Reported Results (YoY) Reported Q1/17 Q4/16 Q1/16 Revenue 9,120 8,745 8,610 EPS up 13% PCL 633 548 642 Adjusted EPS up 13%1 Expenses 4,897 4,848 4,653 Net Income 2,533 2,303 2,223 Revenue up 6% Adjusted revenue excluding M&A and FX up 7%2 Di
Slide 5: Canadian Retail
Canadian Retail Highlights (YoY) P&L $MM Q1/17 QoQ YoY Net income of $1.6 billion Revenue 5,203 1% 3% Insurance Claims 574 (2%) (12%) Revenue up 3% Revenue Net of Claims1 4,629 1% 6% Loan volumes up 4% PCL 269 2% 18% Deposit volumes up 12% Expenses 2,225 (1%) 7% Net Income 1,566 4% 4% Wealth a
Slide 6: U.S. Retail
U.S. Retail Highlights US$MM (YoY) P&L US$MM (except where noted) Q1/17 QoQ YoY Net income up 9% Revenue1 1,898 3% 9% Revenue up 9% PCL 193 32% 21% Loan volumes up 7% Expenses 1,077 (6%) 5% U.S. Retail Bank Deposit volumes up 11% Net Income 518 11% 10% NIM of 3.03%, down 10 bps QoQ Equity income
Slide 7: Wholesale Banking
Wholesale Banking Highlights (YoY) P&L $MM Net income up 66% Q1/17 QoQ YoY Revenue 857 16% 29% Revenue up 29% PCL (24) NM NM Higher debt and equity origination activity Expenses 524 21% 22% Trading-related revenue of $515MM Net Income 267 12% 66% ROE 17.5% PCL down QoQ Expenses up 22% Earnings $
Slide 8: Corporate Segment
Corporate Segment Highlights (YoY) P&L $MM Reported Q1/17 Q4/16 Q1/16 Reported loss of $100MM (adjusted1 $75MM) Net Income2 (100) (138) (202) Ongoing investments in enterprise and regulatory projects Higher revenue from treasury and balance sheet Adjusted1 Q1/17 Q4/16 Q1/16 management activities
Slide 9: Capital & Liquidity
Capital & Liquidity Highlights Common Equity Tier 11 Common Equity Tier 1 ratio of 10.9% Q4 2016 CET1 Ratio 10.4% Leverage ratio of 4.0% Internal capital generation 36 bps Actuarial gain on employee pension plans 11 bps Liquidity coverage ratio of 124% RWA increase and other (3 bps) Q1 2017 CET1 Rat
Slide 10: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights $1,717 Total formations stable quarter over quarter at 21bps $1,453 U.S. Retail formations quarterly $142 / 38bps $1,281 increase of $71MM driven by: $1,224 $1,227 $1,020 / 57 bps US$51MM in the Indirect Au
Slide 11: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights $3,799 GIL rate remains at cyclically low $39 / 10 bps $3,567 $3,467 $3,509 level $178 / 48 bps $3,399 $211 / 54 bps $163 / 41 bps $73 / 18 bps $90MM Wholesale GIL decrease quarter over quarter due to resolutions in the Oil
Slide 12: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio Highlights PCL1: $MM and Ratios2 PCL increased $81MM quarter $648 $635 over quarter driven by: $10 / 11 bps $592 $ 65 / NM $563 $554 US$57MM largely due to $48 / 53 bps $9 / 10 bps $1/NM seasonal trends in the U.S. $40 / NM Credit Card and Indirect
Slide 13: Appendix
Appendix
Slide 14: Q1 2017: Items of Note
Q1 2017: Items of Note MM EPS Reported net income and EPS (diluted) $2,533 $1.32 Revenue/ Pre Tax After Tax Items of note EPS Segment Expense (MM) (MM) Line Item3 Amortization of intangibles1 $80 $59 $0.03 Corporate page 9, line 10 Fair value of derivatives hedging the reclassified ($41) ($34) ($0.0
Slide 15: Canadian Retail
Canadian Retail Net Interest Margin Average Deposits $B 294 303 274 284 272 24 21 22 19 20 2.82% 96 99 2.80% 85 85 91 2.79% 2.78% 2.77% 167 169 172 176 180 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Personal Business Wealth Efficiency Ratio Average Loans $B 359 361 365 371 374 58 60
Slide 16: Canadian Wealth
Canadian Wealth Wealth Revenue $MM Wealth Assets $B1 950 957 927 879 883 121 127 120 118 116 390 126 151 372 379 122 355 112 133 342 268 271 266 248 256 685 703 679 649 634 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Fee & Other Transaction NII AUA AUM 16 1. See slide 5, footnote 2.
Slide 17: U.S. Retail
U.S. Retail Net Interest Margin1 Average Deposits US$B 234 242 218 224 225 3.14% 3.11% 3.11% 3.13% 89 95 81 84 84 3.03% 62 62 62 65 66 75 78 79 80 82 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Q1/16 Q2/16 Q3/16 Q4/16 Q1/17 Personal Business TD Ameritrade IDAs 2 Efficiency Ratio Average Loans US$B 138 140 143 61.
Slide 18: U.S. Retail
U.S. Retail TD Wealth Assets US$B1 TD Ameritrade2 TD’s share of TD Ameritrade’s net income 74 74 73 was C$111MM in Q1/17, up 2% YoY mainly 66 due to: 60 Increased trading volumes and higher asset- based revenue Partially offset by higher operating expenses TD Ameritrade results: Net income US$
Slide 19: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q4/16 Q1/17 Canadian Retail Portfolio $ 372.2 $ 373.0 Personal $ 309.1 $ 309.0 Residential Mortgages 189.0 188.1 Home Equity Lines of Credit (HELOC) 65.0 65.9 Indirect Auto 20.6 20.5 Unsecured Lines of Credit 9.5 9.6 Credit
Slide 20: Oil and Gas Exposure
Oil and Gas Exposure Corporate and Commercial Outstandings Highlights by Sector ($B): Corporate and Commercial Oil and Gas portfolio quality is returning to normalized levels due to stronger commodity prices, improved capital markets, and borrower actions including recapitalizations and $2.7 asset
Slide 21: Canadian Real Estate Secured Lending Portfolio
Canadian Real Estate Secured Lending Portfolio Canadian Portfolio1 $B Highlights $248 $248 $252 $254 $254 Canadian RESL credit quality remains strong Provision for Credit Loss rates remain stable Uninsured (%) 45 47 49 50 52 Uninsured and Insured portfolio loan-to-value rates stable Condo bo
Slide 22: Canadian Personal Banking
Canadian Personal Banking Q1/17 Highlights Gross Loans GIL GIL / Canadian Personal Banking1 ($B) Loans ($MM) Credit quality remains strong Residential Mortgages 188 385 0.21% in the Canadian Personal Home Equity Lines of Credit (HELOC) 66 145 0.22% portfolio Indirect Auto 21 55 0.27% Unsecured Lin
Slide 23: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q1/17 Canadian Commercial and Gross Highlights GIL GIL/ Loans/BAs Wholesale Banking ($B) ($MM) Loans Canadian Commercial and Commercial Banking1 64 211 0.33% Wholesale Banking portfolios Wholesale 41 73 0.18% continue to perform well Total Canadian Commerc
Slide 24: U.S. Personal Banking – U.S. Dollars
U.S. Personal Banking – U.S. Dollars Q1/17 U.S. Personal Banking1 Gross Loans GIL GIL / Highlights ($B) ($MM) Loans Residential Mortgages 21 351 1.70% Continued good asset quality Home Equity Lines of Credit (HELOC)2 10 717 7.33% in U.S. Personal Indirect Auto 21 162 0.76% Credit Cards 11 183 1.69
Slide 25: U.S. Commercial Banking – U.S. Dollars
U.S. Commercial Banking – U.S. Dollars Q1/17 Gross Loans / GIL GIL/ Highlights U.S. Commercial Banking1 BAs ($B) ($MM) Loans Commercial Real Estate (CRE) 21 94 0.45% Sustained good quality in Non-residential Real Estate 16 52 0.33% U.S. Commercial Banking Residential Real Estate 5 42 0.83% US$40
Slide 26: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Website: Best Investor Relations by Sector: Financial Services www.td.com/investor Best Corporate Governance
Slide 27: TD Bank Group Q1 2017 Quarterly Results Presentation
TD Bank Group Q1 2017 Quarterly Results Presentation Thursday March 2, 2017