Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — Investor Presentation (2013)
36 slides from Toronto-dominion Bank's investor presentation, 2013
Slide 1: Investor Overview Presentation Q1-2013
Investor Overview Presentation Q1-2013
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements From time to time, the Bank makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission, and in other communications. In addition, representativ
Slide 3: TD Bank Group – Key Messages
TD Bank Group – Key Messages 6th largest bank 1 Top 10 Retail Focused North American Bank by Market Cap and Total Assets1 Delivering 2 Proven Performance top tier long term shareholder returns Highly rated by all 3 Strong Balance Sheet and Capital Position major credit rating agencies Targeting 7-10
Slide 4: TD Bank Group
TD Bank Group Our Businesses Canadian Personal & Commercial Personal banking Commercial banking Wealth & Insurance Direct investing Advice-based wealth business Asset management 2,491 Insurance Business Locations1 U.S. Personal & Commercial CAD U.S. Personal banking Q1 20132 (C$) P&C P
Slide 5: Simple Strategy, Consistent Focus
Simple Strategy, Consistent Focus Building 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 convenienc
Slide 6: Competing in Attractive Markets
Competing in Attractive Markets Country Statistics Country Statistics 10th largest economy World’s largest economy Nominal GDP of C$1.7 trillion Nominal GDP of US$15.1 trillion Population of 35 million Population of 314 million Canadian Banking System U.S. Banking System Soundest banki
Slide 7: TD Bank Group in North America
TD Bank Group in North America Compared to: Q1 2013 North Canadian American Peers5 (C$ Billions) Peers6 Total Assets $818B 2nd 6th Total Deposits $494B 3nd 7th Market Cap (as of October 31, 2012) $77B 2nd 6th Adj. Net Income1 (Trailing 4 Quarters) $7.2B 2nd 6th Rpt. Net Income (Trailing 4 Quarters)
Slide 8: Composition of Earnings
Composition of Earnings Highlights TD is a top 10 bank in North America1 Increasing retail focus Wholesale Strength of retail franchise 9% U.S. P&C Reliable and steady earnings mix 21% Canadian P&C 50% TD AMTD 3,4 $7,075 2% Adjusted Retail Earnings2,5 13% 12% Wealth & Wholesale Earnings Insu
Slide 9: Evolution of TD
Evolution of TD Building Franchise Businesses >>> Increasing Retail focus >>> Acquired TD Chrysler Announced Waterhouse Financial acquisition TD Bank Acquired Acquired USA/ Privatized Acquired Commerce Acquired and MBNA of Target and Canada Newcrest 51% of Ameritrade TD Commerce Bank Riverside credi
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 do not “bet the bank” on any single acquisition,
Slide 11: TD Bank Group – Key Messages
TD Bank Group – Key Messages 1 Top 10 Retail Focused North American Bank1 2 Proven Performance 3 Strong Balance Sheet and Capital Position 4 Focused on Growth Opportunities 10 1. See slide 6.
Slide 12: Solid Growth and Returns Across Businesses
Solid Growth and Returns Across Businesses Adjusted Earnings1,2 R CAG s: 11% 3 $7,075 ear g (C$MM) 5-y Earnin : 5% $6,432 s t ed EPS d Adju djuste A $5,228 $4,716 $4,189 $3,813 Wholesale Banking $1,916 U.S. P&C Wealth & Insurance2 Canadian P&C2 2007 2008 2009 2010 2011 2012 YTD 2013 Adjusted Retail
Slide 13: Leading Total Shareholder Returns
Leading Total Shareholder Returns Total Shareholder Return (CAGR1) CDN Peers2 24.7% NA Peers2 17.4% 13.6% 13.8% 12.5% 11.3% 11.4% 9.4% 8.6% 8.4% 8.1% 8.1% 5.3% 3.5% -1.3% Q1 2013 1 Year 3 Years 5 Years 10 Years Delivering top tier long-term shareholder returns 1. Compounded Annual Growth Rates (CAGR
Slide 14: Strong, Consistent Dividend History
Strong, Consistent Dividend History Dividends Per Share (C$) Q1/13: $2.89 Announced $0.04 dividend increase1 w th r o dG Dividend alize nu Yield: An 11 % 3.72 $0.38 Q3/12 Increased Target Payout Range: 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 201
Slide 15: Q1 2013 Highlights
Q1 2013 Highlights Key Themes Net Income $MM (Adjusted, where applicable)1 Strong adjusted1 EPS growth of Q1/13 QoQ YoY 8% YoY Retail2 $ 1,706 16% 10% Wholesale 159 -49% -18% Record performance driven by Corporate 51 n/a +100% retail businesses Adjusted Net Income $ 1,916 9% 9% Volume growth w
Slide 16: Q1 2013 Operating Highlights
Q1 2013 Operating Highlights Key Themes by Segment (Fiscal YoY change) Record adjusted earnings1 up 11% Canadian Record annual adjusted efficiency ratio1 of 43.8% Starting 2013 on P&C Average RESL volumes +5%. Auto lending average a strong note volumes +3% and Business Banking volume +13%. R
Slide 17: Q1 2013 Credit Highlights
Q1 2013 Credit Highlights Key Credit Themes PCL Ratio (bps)1,2 48 46 46 Strong credit performance across 42 all portfolios as evidenced by: Decreased delinquencies in the 35 Canadian Personal portfolios Return to normal levels of Gross Impaired Loan formations YoY improvement of 148 bps for
Slide 18: TD Bank Group – Key Messages
TD Bank Group – Key Messages 1 Top 10 Retail Focused North American Bank1 2 Proven Performance 3 Strong Balance Sheet and Capital Position 4 Focused on Growth Opportunities 17 1. See slide 6.
Slide 19: Attractive Funding Mix
Attractive Funding Mix Funding Mix1 Wholesale Term Debt2 Commercial Personal Deposits External Term Deposits 19% MBS Sales Short Term 62% 10% Funding & Other 17% Personal Non‐ Term Deposits Covered Bonds Wholesale Term 15% 35% Debt Senior 11% Debt 23% Sub‐ Trading Debt Deposits 1% 7% P&C Deposits 64
Slide 20: Strong Capital Position
Strong Capital Position Highlights Basel III Common Equity Tier 11 8.8% Basel III Common Equity Tier 1 8.2% 7.4% 7.7% ratio of 8.8% as of Jan 31, 7.1% 2013 Exceeded 7% regulatory requirement on a fully phased-in basis Includes 30 bps of temporary relief from OSFI on treatment of Q1/12 Q2/12 Q3
Slide 21: Strong Focus on Risk – Adjusted Return
Strong Focus on Risk – Adjusted Return Citations Adjusted Return on Risk-Weighted Assets1 2.81% Bloomberg Markets magazine 2.43% ranked TD as the world’s fourth strongest bank in 2012 1.47% Global Finance magazine ranked TD one of the World’s Safest Banks in 2012 2 TD Canadian Peers 3 U.S. Peers
Slide 22: Gross Lending Portfolio
Gross Lending Portfolio Balances Highlights C$B (unless otherwise noted) Q1/13 Canadian Personal & Commercial Portfolio $ 301.6 Canadian portfolio – strong credit quality Personal $ 258.0 Residential Mortgages 155.2 Real estate secured lending volume up 5% YoY Home Equity Lines of Credit (HELOC) 6
Slide 23: TD Bank Group – Key Messages
TD Bank Group – Key Messages 1 Top 10 Retail Focused North American Bank1 2 Proven Performance 3 Strong Balance Sheet and Capital Position 4 Focused on Growth Opportunities 22 1. See slide 6.
Slide 24: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Consistent Strategy Adjusted Net Income1 (C$MM) $3,408 $3,095 $3,051 Where we compete $2,424 $2,472 $2,253 Continue to win in retail banking Higher growth opportunities Business banking $944 Auto lending Credit cards 2007 2008 2009 2010 2011 2012 YTD
Slide 25: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Leaders in customer service and convenience TD has opened approximately 1 out of every 3 new branches1 On average 45% longer branch hours than peers2 Sunday banking in over 370 branches Integrated Product Offerings #1 or #2 market share in most retail p
Slide 26: Wealth & Insurance
Wealth & Insurance Consistent Strategy Net Income1 (C$MM) $1,367 $1,314 Where we compete $557 $541 Wealth $762 $769 $641 $209 $597 Mass Affluent and High Net Worth TD clients $261 $289 $207 in Canada and U.S. $252 $194 $377 Self-directed investors in selected markets $501 $566 $601 $165 $480 $44
Slide 27: Wealth & Insurance
Wealth & Insurance Leading market positions #1 Online brokerage in Canada for assets and trades1 #2 Execution-only brokerage in the U.K.2 #1 Institutional Asset Management3 #1 Private Investment Counsel4 #1 Direct writer of home & auto insurance in Canada5 #1 Affinity home and auto insur
Slide 28: U.S. Personal & Commercial Banking
U.S. Personal & Commercial Banking Consistent Strategy Adjusted Net Income2 $1,422 ($MM) $1,270 Where we compete $909 $1,042 $806 Retail and commercial banking along the Eastern Seaboard C$ $359 $385 Operate in 5 of the top 10 MSAs1 and 7 of the 10 wealthiest states US$ $328 $794 $781 $1,008 $1,
Slide 29: U.S. Personal & Commercial Banking
U.S. Personal & Commercial Banking Lead in customer service and convenience Committed to providing legendary service and unparalleled convenience Open longer than the competition, including Sunday banking in most markets 24/7/365 live customer contact center support Significant scale and envia
Slide 30: Wholesale Banking
Wholesale Banking Consistent Strategy Adjusted Net Income1 (C$MM) Where we compete $1,137 $987 Canada $880 $824 $815 Be the top-ranked integrated investment dealer U.S. Extend the goals of the Canadian franchise $159 $65 Be a Wholesale dealer to U.S. P&C Grow U.S. fixed income and foreign 20
Slide 31: Wholesale Banking
Wholesale Banking Focus on client-driven franchise businesses Diversified business mix with a North American focus Presence in key global financial centres Evolved the business model by strategically repositioning the dealer to concentrate on core-client driven activities Top-Rated (e.g.: exit
Slide 32: TD Model Has Proven Its Resilience
TD Model Has Proven Its Resilience Simple Strategy Headwinds Consistent Focus Superior Execution Slowing loan growth in Canada Lead with service and convenience Lower for longer interest rates Leverage TD brand across all segments Demanding regulatory environment Continue to invest Focus on or
Slide 33: Commitment to Corporate and Social Responsibility
Commitment to Corporate and Social Responsibility Corporate Leadership Extraordinary Workplace that Embraces Diversity One of Canada’s “Most Responsible One of the 50 Best Employers in Canada and one Companies” (Macleans magazine and of the Top 30 Green Employers1 Sustainalytics, in both 2011 an
Slide 34: Environmental Leadership & Community Engagement
Environmental Leadership & Community Engagement Environmental Leader One of the world’s top 500 corporate environmental leaders Framework of environmental/sustainability policies: (Newsweek 2012) TD Asset Management is a signatory to United Nations One of Canada’s top 20 organizations in ter
Slide 35: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Grand Prix for Best Overall Investor Relations: Large Cap Best Investor Relations by Email: Sector: Financial Services Best Investor Relations tdir@td.com by a CEO: Large Cap Best Investor Relations by a CFO: Large Cap Website: Best I
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