Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Financial Group — Scotia Capital Financials Summit 2006
18 slides from Toronto-dominion Bank's conference presentation, Sep 12, 2006
Slide 1: Scotia Capital Financials Summit 2006
Scotia Capital Ed Clark Financials Summit 2006 President & CEO September 12, 2006 TD Bank Financial Group Forward-Looking Statements From time to time, the Bank makes written and oral forward-looking statements, including in this presentation, in other filings with Canadian regulators or the U.S. Se
Slide 2: A Top 10 North American Player / TD At A Glance
A Top 10 North American Player Market Cap $US billion Market Cap Rank1 $US billion Money Center $41.5B 1 Citigroup $244.0 2 Bank of America $232.9 3 JP Morgan Chase $158.5 Super Regional $25.7B 4 Wells Fargo $117.0 5 Wachovia $86.8 6 US Bancorp $57.2 $12.0B 7 RBC $56.3 8 Scotiabank $42.1 #9 TD Bank
Slide 3: TD – Earnings Growth Leader… Delivering Superior Shareholder Returns
TD – Earnings Growth Leader… Growth in EPS1 (Average of year-over-year growth 2003-2006 YTD) 21.3% 19.3% 19.9% 9.6% Canadian Peers2 Money Center Top 3 (4 banks) Banks3 Super-Regional Banks4 1. TD’s results based on adjusted earnings as described on slide #4 2. Canadian Peers- other big 4 banks (RY,
Slide 4: Why TD Bank / Attractive Canadian Market
Why TD Bank 1. Positioned in attractive Canadian market – fundamentals best of G7 2. A different kind of bank – better growth at lower risk 3. Industry-leading performance – proven record as earnings growth leader 4. Best U.S. growth platform – two franchises: TD Banknorth, TD Ameritrade 7 Attractiv
Slide 5: A Different Kind of Bank
Why TD Bank 1. Positioned in attractive Canadian market – fundamentals best of G7 2. A different kind of bank – better growth at lower risk 3. Industry-leading performance – proven record as earnings growth leader 4. Best U.S. growth platform – two franchises: TD Banknorth, TD Ameritrade 9 A Differe
Slide 6: Premium Earnings Mix / Wholesale Bank: Lower Risk, High Return Focus
Premium Earnings Mix Retail as % of Total Earnings1 80% 74% 69% 66% Canadian Peers Money Center Top 3 (4 banks) Banks Super-Regional Banks 1. Canadian Banks - Retail% as per YTD Q3 2006 Earnings. U.S. Banks – Retail% as per YTD Q2 2006 Earnings. Canadian and U.S. Peer groups as defined in slide #5 1
Slide 7: Wholesale Bank Focused Strategy / Strong Capital Base
Wholesale Bank: Focused Strategy on Core Businesses Progressing towards Top 3 status in Canada YTD Top 3 TDS Market Share Rankings 2003 Jun/06 Status Trading Block Equity Trading1 5 1 Yes Fixed Income Trading2 2 1 Yes Debt Underwriting Government Underwriting3 4 2 Yes Corporate Underwriting3 3 3 Yes
Slide 8: Best Return for Risk Undertaken
Result: Best Return for Risk Undertaken Return on Risk-Weighted Assets1 (YTD 2006) 2.46% 25% greater than peer 2.12% average 1.93% 1.74% Canadian Peers Money Center Top 3 (4 banks) Banks Super-Regional Banks 1. Based on adjusted earnings as described on slide #4 15 Why TD Bank 1. Positioned in attra
Slide 9: Simple Business Model for Growth Leadership / Building On Strong Core Businesses
Simple Business Model for Growth Leadership 1 2 3 4 Invest in Leverage Focus on Result: core competitive operating superior businesses edge in core excellence growth strengths The key is execution 17 #1: I N V E S T Building On Strong Core Businesses Canadian Personal & Commercial Market share in
Slide 10: Superior Canadian Retail Revenue Growth / Continually Invest for Future Growth
#1: I N V E S T Superior Canadian Retail1 Revenue Growth2 Consistently Ahead of Peers Growing 78% Faster – Last 11 Quarters Than Peers (11 Quarter Average) 15% 14.2% 9.8% 78% 10% 5.5% 5.9% 5% Peers 0% 04 04 04 04 05 05 05 05 06 06 06 4-Peer 1/ 2/ 3/ 4/ 1/ 2/ 3/ 4/ 1/ 2/ 3/ Q Q Q Q Q Q Q Q Q Q Q Aver
Slide 11: Case Studies – Significant Growth in Market Shares / Leveraging Competitive Edge
#1: I N V E S T Case Studies – Significant Growth in Market shares Meloche Monnex TD Wealth Personal Lines Advisory Business2 Home & Auto Market1 8.3% 11.1 % #3 9.3% TD’s share up 180 bps 3.2% vs. 5-bank peer group share down (500 bps) #14 1997 2005 Dec-02 Dec-05 (when acquired) 1. Source: Based on
Slide 12: Canadian P&C Strategies are Working / Canadian Wealth Management
#2: L E V E R A G E Canadian P&C Strategies are Working, Gaining Share Momentum and still have room to grow Market Share of Market Share of VISA Balances1 Small Business Loans2 7.74% 7.53% 17.59% 17.28% 7.37% 15.84% Dec 04 Dec 05 May 06 Dec 04 Dec 05 Mar 06 1. Source: CBA 2. Source: CBA – Business L
Slide 13: Focus on Operating Excellence / Superior Canadian Retail Earnings Growth
#3: O P E R A T I N G EXCELLENCE Focus on Operating Excellence Operating Excellence + Investment = Improve Efficiency Total Canadian Retail Canadian Personal & Commercial Efficiency Ratio Bank Efficiency Ratio (YTD Q3/06) 61.0% 59.2% 59.7% 58.7% 200 bps lower than 56.3% peers 54.8% 57.7% FY2002 FY20
Slide 14: A Clear, Focused U.S. Growth Strategy
Why TD Bank 1. Positioned in attractive Canadian market – fundamentals best of G7 2. A different kind of bank – better growth at lower risk 3. Industry-leading performance – proven record as earnings growth leader 4. Best U.S. growth platform – two franchises: TD Banknorth, TD Ameritrade 27 A Clear,
Slide 15: A Two-Pronged Approach: TD Banknorth and TD Ameritrade
A Two-Pronged Approach 1 of 25 Size largest commercial 1 of the largest banks in U.S. online brokers in U.S. (based on total assets) TD Ownership ~56.5% ~39.5% Market Cap $US 6.8B $US 10.7B (Aug 31/06) Footprint ~600 branches ~100 branches in 8 NE states across the US Employees 9,000 + 4,000 + Annua
Slide 16: Why We Like The TD Banknorth Platform / A Powerful Combination
Why We Like The TD Banknorth Platform Acquisitions are a core competency ̶ completed 26 bank-related acquisitions since 19871 Opportunity to expand northeast U.S. footprint in a disciplined way On the move: since TD close in March 2005: ̶ Acquired Hudson United – January 2006 – $8.8 B in assets ̶ Pe
Slide 17: Why We Like TD Ameritrade / TD Growth Drivers and Outlook
Why We Like The TD Ameritrade Platform Leverages TD’s ownership in TD Waterhouse USA into ownership in one of the three major players in the sector: ̶ significant synergies Excellent, experienced U.S. management team Best in class platform – positioned for organic growth: ̶ spectrum from active to l
Slide 18: Why TD Bank
Why TD Bank 1. Leading North American Financial Services Company – well positioned in attractive Canadian market 2. A different kind of bank – better growth at lower risk – best in class Canadian Retail Bank; lower risk Wholesale Bank 3. Industry-leading performance – proven record as earnings growt
TD Bank Financial Group — Scotia Capital Financials Summit 2006 on 6ix