Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q3 2019 Earnings Presentation
30 slides from Toronto-dominion Bank's earnings presentation, Aug 29, 2019
Slide 1: TD Bank Group Q3 2019 Quarterly Results Presentation
TD Bank Group Q3 2019 Quarterly Results Presentation Thursday, August 29, 2019
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: Our Strategy: Own the future
Our Strategy Own the future TD aims to stand out from its peers by having a differentiated brand – anchored in our proven business model, and rooted in a desire to give our customers, communities and colleagues the confidence to thrive in a changing world. Proven business model Forward Focused Purpo
Slide 4: Proven Business Model
Proven Business Model Consistent earnings growth, underpinned by a strong risk culture ▪ Reported earnings up 5% (adjusted up 7%)1 ▪ Reported EPS up 5% (adjusted up 8%)1 ▪ Great results across all segments ▪ CET 1 ratio of 12%, including repurchase of 11.25 million common shares 1. The Bank prepares
Slide 5: Forward-focused
Forward-focused Shaping the future of banking Easier cash transfer Reached 5.2 million New Wealth products Enhanced with EasyWeb Canadian mobile users and resources TD Insurance app Improved U.S. digital Reached 3.2 million Integrated view of Leadership in green mortgage offering U.S. mobile users c
Slide 6: Purpose-driven
Purpose-driven Centered on our vision, purpose and shared commitments ▪ Celebrating our customers ▪ Developing our colleagues ▪ Supporting our communities 6
Slide 7: Q3 2019 Highlights
Q3 2019 Highlights Total Bank Reported Results (YoY) Financial Highlights $MM Reported Q3/19 Q2/19 Q3/18 EPS up 5% Revenue 10,499 10,228 9,899 ▪ Adjusted1 EPS up 8% PCL 655 633 561 Revenue up 6% Expenses 5,374 5,248 5,131 Net Income 3,248 3,172 3,105 Expenses up 5% Diluted EPS ($) 1.74 1.70 1.65 PCL
Slide 8: Canadian Retail
Canadian Retail Highlights (YoY) P&L $MM Reported Q3/19 QoQ YoY Net income up 2% (3% adjusted)1 Revenue 6,146 3% 6% Insurance Claims 712 7% 14% Revenue up 6% Revenue Net of Claims2 5,434 3% 5% ▪ Loan volumes up 5% PCL 316 13% 28% ▪ Deposit volumes up 3% Expenses 2,533 2% 6% ▪ Wealth assets3 up 10% E
Slide 9: U.S. Retail
U.S. Retail Highlights US$MM (YoY) P&L US$MM (except where noted) YoY Q3/19 QoQ YoY Net income up 10% (9% adjusted)1 Adj.1 Revenue 2,247 3% 4% 4% Revenue up 4% PCL 191 12% 12% 12% ▪ Loan volumes up 6% Expenses 1,208 5% 3% 3% ▪ Deposits ex-TD Ameritrade up 5% U.S. Retail Bank Net Income 747 (1%) 6% 6
Slide 10: Wholesale Banking
Wholesale Banking Highlights (YoY) P&L $MM Q3/19 QoQ YoY Net income up 9% Revenue 914 3% 13% Revenue up 13% PCL 1 NM NM ▪ Higher trading related revenue Expenses 594 (1%) 12% Net Income 244 10% 9% Expenses up 12% YoY ROE 13.4% ▪ Continued investments in the global expansion of our USD strategy Earni
Slide 11: Corporate Segment
Corporate Segment Highlights (YoY) P&L $MM Reported Q3/19 Q2/19 Q3/18 Reported loss of $173MM Net Income (173) (161) (113) ▪ Adjusted1 loss of $109MM Adjusted1 Q3/19 Q2/19 Q3/18 Net Corporate Expenses (156) (176) (214) Other 47 81 87 Non-Controlling Interests 0 0 18 Net Income (109) (95) (109) 1. Ad
Slide 12: Capital & Liquidity
Capital & Liquidity Highlights Common Equity Tier 1 Common Equity Tier 1 ratio of 12.0% Q2 2019 CET1 Ratio 12.0% Leverage ratio of 4.1% Internal capital generation 41 Actuarial losses on employee pension plans (6) Liquidity coverage ratio of 132% Organic RWA increase and other (18) Repurchased 11.25
Slide 13: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Business Segment Highlights GIL Formations1: $MM and Ratios2 ▪ Gross impaired loan formations stable quarter- 26 21 20 21 bps over-quarter at 21 basis 18 points $1,722 $1,459 $1,424 $19 / 4 bps $1,340 $1,182 $1,117 / 55 bps $725 / 36 bps $758 / 36 bps $759 / 36 bps
Slide 14: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Business Segment Highlights GIL1: $MM and Ratios2 ▪ Gross impaired loans decreased 6 basis points 47 53 48 45 42 bps quarter-over-quarter reflecting: ▪ The sale of impaired loans in $3,534 the U.S. Commercial portfolio $3,296 $3,154 $2,945 attributable to the power and
Slide 15: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Business Segment Highlights PCL1: $MM and Ratios2 $855 ▪ PCL stable quarter-over- $7 quarter at 38 basis points $675 $664 $227 $8 $636 $1 $567 $83 $155 $132 $107 $311 $264 $249 $229 $228 $310 $280 $316 $246 $263 ($14) ($5) Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 PCL Ratio1
Slide 16: Provision for Credit Losses (PCL): Impaired and Performing
Provision for Credit Losses (PCL)1,2 Impaired and Performing Highlights PCL (C$MM) Q3/18 Q2/19 Q3/19 ▪ Impaired PCL stable quarter- Total Bank $ 567 $ 636 $ 664 over-quarter, reflecting Impaired 536 596 590 ▪ Credit migration in the Performing 31 40 74 Canadian Retail and Canadian Retail $ 246 $ 280
Slide 17: Appendix
Appendix
Slide 18: Q3 2019: Items of Note
Q3 2019: Items of Note $MM EPS ($) Reported net income and EPS (diluted) 3,248 1.74 Revenue/ Items of Note Pre Tax After Tax EPS Segment Expense Line Item4 Amortization of intangibles1 75 64 0.03 Corporate page 8, line 14 Charges associated with the Greystone Acquisition2 26 26 0.02 Canadian Retail
Slide 19: Canadian Retail
Canadian Retail Net Interest Margin Average Deposits $B 327 328 331 332 337 24 24 24 25 24 112 113 113 111 113 2.99% 2.96% 2.93% 2.94% 2.94% 191 192 194 197 200 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Personal Business Wealth Efficiency Ratio Average Loans $B 415 419 421 427 406
Slide 20: Canadian Retail: Wealth
Canadian Retail: Wealth Wealth Revenue $MM Wealth Assets $B1 1,094 1,129 1,069 1,086 1,047 167 159 162 160 156 128 132 137 421 419 135 157 403 396 389 349 350 332 297 289 800 789 834 756 753 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Fee & Other Transaction NII AUA AUM 20 1. Canadia
Slide 21: U.S. Retail
U.S. Retail Net Interest Margin1,2 Average Deposits US$B 263 264 266 265 266 3.42% 109 107 109 105 103 3.38% 3.33% 3.33% 3.27% 65 69 68 68 70 88 88 90 92 92 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 4 Personal Business TD Ameritrade IDAs Efficiency Ratio3 Average Loans US$B 152 156
Slide 22: U.S. Retail: Wealth and TD Ameritrade
U.S. Retail: Wealth and TD Ameritrade TD Wealth Assets US$B1 TD Ameritrade2 – Q3 2019 TD’s share of TD Ameritrade’s net income was US$220MM, up 26% YoY (17% on an adjusted3 58 basis) reflecting: 52 ▪ Margin expansion due to higher interest rates and 46 47 43 the gain on sale of assets in the Trust b
Slide 23: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances ($B unless otherwise noted) Q2/19 Q3/19 Canadian Retail Portfolio $422.3 $429.5 Personal $343.7 $349.6 Residential Mortgages 194.4 197.5 Home Equity Lines of Credit (HELOC) 88.2 90.0 Indirect Auto 24.5 25.2 Credit Cards 18.3 18.5 Other Personal 18.3 18.
Slide 24: Canadian Real Estate Secured Lending Portfolio
Canadian Real Estate Secured Lending Portfolio Quarterly Portfolio Volumes $B Highlights $275 $280 $281 $283 $288 Canadian RESL credit quality 63% 65% 66% 67% 68% remained strong Uninsured ▪ Uninsured and insured portfolio loan-to-value Insured rates stable 37% 35% 34% 33% 32% ▪ Less than 1% of unin
Slide 25: Canadian Personal Banking
Canadian Personal Banking Q3/19 Highlights Gross GIL GIL / ▪ Credit quality remained strong Canadian Personal Banking Loans ($B) ($MM) Loans in the Canadian Personal Residential Mortgages $197.5 $254 0.13% Banking portfolio Home Equity Lines of Credit (HELOC) 90.0 144 0.16% Indirect Auto 25.2 71 0.2
Slide 26: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q3/19 Highlights Gross GIL GIL/ Canadian Commercial and Wholesale Banking Loans/BAs ($MM) Loans ▪ Canadian Commercial and ($B) Wholesale Banking gross Commercial Banking1 $79.9 $379 0.47% impaired loans increase not Wholesale 55.5 19 0.03% concentrated in an
Slide 27: U.S. Personal Banking – U.S. Dollars
U.S. Personal Banking – U.S. Dollars Q3/19 Highlights Gross GIL GIL / U.S. Personal Banking1 ▪ Continued good asset quality in Loans ($B) ($MM) Loans Residential Mortgages $25.0 $307 1.23% U.S. Personal Home Equity Lines of Credit (HELOC)2 8.9 386 4.34% ▪ Gross impaired loans decreased, Indirect Aut
Slide 28: U.S. Commercial Banking – U.S. Dollars
U.S. Commercial Banking – U.S. Dollars Q3/19 Highlights Gross GIL GIL/ U.S. Commercial Banking1 Loans / BAs ▪ Sustained good credit quality ($B) ($MM) Loans in U.S. Commercial Banking Commercial Real Estate (CRE) $24.2 $88 0.36% Non-residential Real Estate 17.8 69 0.39% ▪ Gross impaired loans Reside
Slide 29: 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 30: TD Bank Group Q3 2019 Quarterly Results Presentation
TD Bank Group Q3 2019 Quarterly Results Presentation Thursday, August 29, 2019