TD Conservative ETF Portfolio · TSX:TCON
TD Conservative ETF Portfolio — TD Bank Group — Q3 2014 Earnings Presentation
34 slides from TD Conservative ETF Portfolio's earnings presentation, 2014
Slide 1: TD Bank Group Investor Presentation Q3 2014
TD Bank Group Investor Presentation Q3 2014
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 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 Q3 20141 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 10th largest economy World’s largest economy Nominal GDP of C$1.7 trillion Nominal GDP of US$15.1 trillion Population of 35 million Population of 314 million Canadian Banking System U.S. Banking System Soundest banki
Slide 7: TD in North America
TD in North America North Q3 2014 Canadian American C$ except otherwise noted Ranking5 Ranking6 Total assets $922B 1st 5th Total deposits $574B 2nd 6th Market capitalization $105B 2nd 6th Adjusted net income1 (trailing four quarters) $8.1B 2nd 6th Reported net income (trailing four quarters) $7.8B n
Slide 8: Composition of Earnings
Composition of Earnings Adjusted Earnings1 2013 Adjusted (C$MM) Retail Earnings1,4 = 91% Adjusted Retail Earnings1,4 Wholesale Earnings $7,136 9% Canadian Retail U.S Retail2 91% 65% 23% 4 TD AMTD3 $2,158 3% 42% Wholesale 9% 58% 2001 2013 Retail-focused earnings mix 1. See slide 4, footnote 3, for de
Slide 9: Strategic Evolution of TD
Strategic Evolution of TD INCREASING RETAIL FOCUS Acquired Acquired Target Became primary TD Chrysler credit card issuer of Waterhouse Financial portfolio & Epoch; Aeroplan Visa; TD Bank Acquired Acquired USA / Privatized Acquired Commerce Acquired and MBNA and announced acquired ~50% of and Canada
Slide 10: Risk Management Framework
Risk Management Framework Our Risk Appetite We take risks required to build our business, but only if those risks: Fit our business strategy and can be understood and managed Do not expose the enterprise to any significant single loss events; we don’t “bet the bank” on any single acquisition, bu
Slide 11: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 Retail Focused North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering top tier long 2 Proven Performance term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
Slide 12: Stable Earnings Growth
Stable Earnings Growth Adjusted Earnings1,2,4 (C$MM) 2009 – 20112: Wholesale Banking Wealth & Insurance U.S. P&C Canadian P&C 2012 – 20134: Wholesale Banking U.S. Retail Canadian Retail IFRS Segment realignment Targeting 7-10% adjusted EPS growth over the medium term 1. The Bank transitioned from Ca
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 36.2% 32.7% 18.3% 18.4% 17.2% 17.3% 16.5% 14.0% 13.3% 13.8% 10.9% 4.9% 1 Year 3 Years 5 Years 10 Years 1 Year 3 Years 5 Years 10 Years Delivering top
Slide 14: Strong, Consistent Dividend History
Strong, Consistent Dividend History Dividends Per Share (C$) $1.62 Q1/14: Announced $0.04 dividend increase Dividend yield: 3.3%1 $0.19 Q3/12: Increased target payout range to 40%-50%2 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 Dividend h
Slide 15: Q3 2014 Highlights
Q3 2014 Highlights Key Themes Net Income $MM Adjusted, where applicable1 Adjusted1 EPS growth of 40% YoY Q3/14 QoQ YoY Up 10% after adding back the $418 million Retail2 $ 2,004 6% 38% of after-tax insurance charges taken in Wholesale 216 4% 46% Q3/13 Corporate (53) NM NM Retail earnings up 38%
Slide 16: Q3 2014 Segment Results Highlights
Q3 2014 Segment Results Highlights Strong adjusted1 net income up 54% YoY Canadian Higher volumes, improved margin, growth in wealth assets Good volumes, and Insurance business very strong Retail Credit remains favourable operating leverage Adjusted1 expenses up 6% YoY Net income (ex-TD Am
Slide 17: Q3 2014 Credit Highlights
Q3 2014 Credit Highlights Highlights PCL Ratio (bps)1 Annual loss rates continue to run at cyclically low levels 40 37 38 Good quality broad-based growth 35 across all portfolios 28 Canadian and U.S. Credit Cards performing well Q3/13 Q4/13 Q1/14 Q2/14 Q3/14 Favourable improvement in U.S. In
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 36% Other OtherDeposits Deposits 33 Personal Personal Covered Bonds Term Deposits Term Deposits 24% 26% 16% 8% 7% Mortgage Residential Mortgages Short Term Securitization 58% Short Term 44 Liabilities Liabiliti
Slide 20: Gross Lending Portfolio
Gross Lending Portfolio Balances Highlights C$B (unless otherwise noted) Q3/14 Canadian Retail Portfolio $ 332.5 Personal $ 280.2 Canadian portfolio Residential Mortgages 170.9 Home Equity Lines of Credit (HELOC) 59.8 Real estate secured lending volume up 3% YoY $231 billion portfolio (63% insur
Slide 21: Strong Capital Position
Strong Capital Position Highlights Basel III Common Equity Tier 11 Basel III Common Equity Tier 1 9.3% 9.2% (CET1) ratio 9.3% 9.0% 8.9% 8.9% Increase of 10 bps QoQ reflects solid organic capital generation partially offset by increase in risk- weighted assets across segments, Q3/13 Q4/13 Q1/14 Q
Slide 22: Strong Focus on Risk-Adjusted Return
Strong Focus on Risk-Adjusted Return Accolades Q3 2014 Adjusted Return on Risk-Weighted Assets1 2.66% “Safest Bank in North 2.34% America & One of the World’s 50 Safest Banks” 1.67% – Global Finance magazine “Best Bank in Canada” – Euromoney magazine 2 4 TD Canadian Peers 3 U.S. Peers “Best Bi
Slide 23: TD Bank Group – Key Themes
TD Bank Group – Key Themes 5th largest bank 1 Top 10 Retail Focused North American Bank by Total Assets1 6th largest bank by Market Cap1 Delivering top tier long 2 Proven Performance term shareholder returns Highly rated 3 Strong Balance Sheet and Capital Position by major credit rating agencies Tar
Slide 24: Canadian Retail
Canadian Retail Consistent Strategy Adjusted Net Income1 (C$MM) Segment IFRS Realignment $4,567 $4,681 How we compete $4,132 Committed to customer service and $3,095 $3,051 convenience across all channels $2,472 Focused on operational excellence Integrated product offerings Reinvesting for t
Slide 25: Canadian Retail
Canadian Retail Personal & Commercial Banking #1 or #2 market share in most retail products1 On average 44% longer branch hours than peers2 with more than 420 branches offering Sunday banking Most downloaded mobile banking app in Canada #2 business bank in Canada in both credit and deposit m
Slide 26: U.S. Retail
U.S. Retail Consistent Strategy Adjusted Net Income1 ($MM) Segment IFRS Realignment How we compete $1,852 $1,619 $1,601 Providing customers with legendary $1,270 service and convenience $1,042 $909 Bringing the whole Bank to our customers C$ Conservative risk appetite Unique employee culture
Slide 27: U.S. Retail
U.S. Retail Personal & Commercial Banking Top 10 bank 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 Targeting top 5 market share in our major markets, including #3 in NYC Solid
Slide 28: Wholesale Banking
Wholesale Banking Consistent Strategy Adjusted Net Income1 (C$MM) IFRS How we compete $1,137 $987 Canada $880 $815 Be the top-ranked integrated investment dealer $650 $653 Fully aligned with TD Bank Group partners U.S. Extend Canadian franchise’s goals into the U.S. Build U.S. franchise in p
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 Evolved the business model by strategically repositioning the dealer to concentrate on core-client driven activities (e.g., exited global
Slide 30: Corporate & Social Responsibility
Corporate & Social Responsibility Highlights Highest in Customer Satisfaction Among the Big Five TD Friends of the Environment Foundation celebrates 24 years Retail Banks in Canada by J.D. Power and Associates with over C$66 million in funds disbursed in support of more than 22,000 local environ
Slide 31: 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 32: 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 33: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Grand Prix for Best Overall Email: Investor Relations: Large Cap Best Investor Relations by tdir@td.com Sector: Financial Services Best Investor Relations by a CEO: Large Cap Website: Best Investor Relations by a CFO: Large Cap www.td
Slide 34: TD Bank Group Investor Presentation
TD Bank Group Investor Presentation Q3 2014