Toronto-dominion Bank · TSX:TD

Toronto-dominion Bank — The Toronto-Dominion Bank — Q2 2025 Earnings Presentation

58 slides from Toronto-dominion Bank's earnings presentation, May 22, 2025

1. Slide 1: Quarterly Results Presentation

   Quarterly Results Presentation TD Bank Group Q2 2025 May 22, 2025

2. 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

3. Slide 3: Strategic Review Update

   Strategic Review Update Adjust business Simplify the Evolve the Bank Innovate to drive mix and capital portfolio and and accelerate efficiency and allocation drive ROE focus capabilities operational excellence Re-allocate capital and Simplify, optimize, and Simplify operating model Redesign operatio

4. Slide 4: Q2 2025 Performance

   Q2 2025 Performance Net Income EPS2 PTPP1,3 Growth (YoY) Total Assets Reported: $11.1B Reported: $6.27 Reported: >100% $2.1T Adjusted1: $3.6B Adjusted1: $1.97 Adjusted1: 5.1% Efficiency Ratio2 ROE2 ROTCE2 CET 14 Reported: 35.5% Reported: 39.1% Reported: 48.0% 14.9% Adjusted, Net of ISE1,2: 57.6.% Ad

5. Slide 5: Strong Execution Across our Businesses

   Strong Execution Across our Businesses Canadian Personal & Commercial Banking U.S. Retail  Card loans up 7% YoY & business loans up 6% YoY  AML remediation is the #1 priority  Deposits up 5% YoY  Loans down 3% YoY, or up 2% YoY excluding loan  Enhanced RESL distribution to deliver speed to port

6. Slide 6: Continued Adoption of our Digital Channels

   Continued Adoption of our Digital Channels Canadian P&C1 U.S. Retail1 Home & Auto Insurance Digital Adoption (% of total customers)2 +146bps End-to-End Digital Sales (% of all transactions)6 +64bps 64.8 66.3 57.6 57.0 +1,400 bps 46.0 Q2/24 Q2/25 Q2/24 Q2/25 32.0 Mobile Users (millions)3 +7.1% +2.8%

7. Slide 7: Sustainability at TD

   Sustainability at TD 2024 Report Q2 2025 Highlights  Contributed $146B since 2023 to TD's 2030 $500B Sustainable and Decarbonization Finance Target  Started transition from voluntary reporting to regulatory reporting Recognized as one of the Best TD Bank, America's Most Convenient following OSFI's

8. Slide 8: U.S. AML Remediation

   U.S. AML Remediation1 We remain on track to implement the majority of remediation actions in 2025 as part of our multi-year program Talent, Governance Remaining Appointment of Implement majority Complete remaining & Structure, and implementations Monitorship of remediation Suspicious Activity Policy

9. Slide 9: U.S. Balance Sheet Restructuring

   U.S. Balance Sheet Restructuring1 Progress Update As of April 30, total assets of ~US$399B vs. US$434B asset limitation2 ~10% Asset Reduction Investment Portfolio Repositioning  Loans reduced by ~US$11B in Q2'25  ~US$3B notional sold in Q2'25  Completed sale of ~US$9B correspondent loans  ~US$19

10. Slide 10: Q2 2025 Highlights

    Q2 2025 Highlights Strong quarter P&L ($MM) EPS of $6.27, up >100% YoY Reported Q2/25 QoQ YoY  Adjusted1 EPS of $1.97, down 3% YoY Revenue 22,937 63% 66% Insurance Service Expenses PTPP up >100% YoY (Adj1 up 5% YoY, excl. U.S. (ISE) 1,417 (6%) 14% Strategic Card Portfolio partners' share (SCP), FX,

11. Slide 11: Restructuring Program

    Restructuring Program Deliver structural cost reduction across the Bank Program size  $163MM pre-tax / $122MM after-tax was incurred in Q2'25  Expect to incur total restructuring charges of $600MM to $700MM pre-tax over the next several quarters1 Impact on expenses  For F'25, expect savings of ~$

12. Slide 12: Canadian Personal & Commercial Banking

    Canadian Personal & Commercial Banking Continued volume growth in loans and deposits P&L ($MM) Reported Q2/25 QoQ YoY Net income down 4% YoY; PTPP up 2% YoY Revenue 4,991 (3%) 3% Revenue up 3% YoY PCL 622 +$101 +$155  Volume growth Impaired 428 -$31 + $31 Performing 194 + $132 +$124  Loan volumes

13. Slide 13: U.S. Retail

    U.S. Retail Continued momentum and progress P&L (US$MM) (except where noted) on balance sheet restructuring Reported Q2/25 QoQ YoY Net income down 77% (Adj1 down 23%) Revenue 1,830 (7%) (28%) PCL 311 -$7 +$31 PTPP down 67% (Adj1 down 10%) Impaired 216 -$155 -$13 Revenue down 28% YoY (Adj1 up 3%) Per

14. Slide 14: Wealth Management & Insurance

    Wealth Management & Insurance Strong quarter across diversified P&L ($MM) businesses Reported Q2/25 QoQ YoY Revenue 3,503 (3%) 12% Net income up 14% YoY; PTPP up 14% YoY Insurance Service Expenses 1,417 (6%) 14% (ISE) Revenue up 12% YoY Revenue, net of ISE 2,086 0% 12%  Wealth Management: higher fe

15. Slide 15: Wholesale Banking

    Wholesale Banking Record revenue P&L ($MM) Reported Q2/25 QoQ YoY Net income up 16% YoY (Adj1 up 1% YoY) Revenue 2,129 6% 10% PTPP up 31% (Adj1 up 15%) Global Markets 1,423 11% 32% Investment Banking 729 (2%) (16%) Revenue up 10% YoY PCL 123 +$51 +$68 Impaired 61 +$28 +$62  Higher trading-related r

16. Slide 16: Corporate Segment

    Corporate Segment Reported net income of $8.2B P&L ($MM)  Adjusted1 loss of $161MM Reported Q2/25 Q1/25 Q2/24 Net Income (Loss) 8,215 (359) (664) Adjustments for items of note Amortization of acquired intangibles2 43 61 72 Acquisition and integration charges related to - - 21 the Schwab transaction

17. Slide 17: Capital

    Capital1 Strong capital and liquidity QoQ CET 1 ratio 238 bps management (40) bps (6) bps (9) bps CET 1 ratio 14.9%, up 177 bps QoQ 53 bps  Strong internal capital generation, offset (28) bps 14.9% (4) bps by RWA growth (excl. FX) (27) bps +25 bps  Sale of Schwab shares increased CET1 13.1% Adjust

18. Slide 18: Gross Impaired Loan Formations

    Gross Impaired Loan Formations By Business Segment GIL Formations1: $MM and Ratios2 Highlights 28  Gross impaired loan formations 21 22 25 21 bps decreased 4 basis points quarter- over-quarter, reflected across: $2,657 $2,432  The consumer and business & $292 / 30 bps $123 / 12 bps government lend

19. Slide 19: Gross Impaired Loans (GIL)

    Gross Impaired Loans (GIL) By Business Segment GIL: $MM and Ratios1 Highlights 52 56 51 bps  Gross impaired loans 41 44 decreased quarter-over- quarter, driven by: $5,453 − The business and $5 / 6 bps government lending $4,949 $4,866 $5 / 6 bps $421 / $5 / 7 bps portfolios $4,170 41 bps − $197 mill

20. Slide 20: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) By Business Segment PCL: $MM and Ratios1,2,3 Highlights Wealth Management & Insurance  PCL increased quarter-over- Wholesale Banking $1,341 quarter, largely reflected in: Canadian Personal & Commercial Banking $1,212 – Canadian Personal & $123 $1,071 $1,072 $1,109

21. Slide 21: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) Impaired and Performing PCL1 ($MM) Highlights Q2/24 Q1/25 Q2/25  Impaired PCL decreased Total Bank 1,071 1,212 1,341 quarter-over-quarter driven by: Impaired 870 1,216 946 − Canadian and U.S. Performing 201 (4) 395 consumer and commercial Canadian Personal & Commer

22. Slide 22: Allowance for Credit Losses (ACL)

    Allowance for Credit Losses (ACL) ACL1,2: $B and Coverage Ratios3 Highlights 99 101 bps  ACL decreased $9 million 93 95 United States 74 91 quarter-over-quarter, due to: Canada $9.1 $9.6 $9.6 – $231 million impact of $8.6 $8.8 foreign exchange 56% 56% 56% 57% 56% – Lower impaired allowance $5.3 – P

23. Slide 23: Industries of Focus: Policy and Trade Uncertainty

    Industries of Focus Policy and Trade Uncertainty Highlights  Gross loans to industries most Automotive, 19% exposed to policy and trade Sundry Remaining sectors Manufacturing & uncertainty were $87 billion1 individually <3% Wholesale, 16% – Representing ~9% of Total Bank gross loans Industries of F

24. Slide 24: Appendix

    Appendix 25 24

25. Slide 25: Q2 2025: Items of Note

    Q2 2025: Items of Note Revenue/ ($MM) EPS ($) Segment Expense Line Item1 Pre-Tax After Tax Reported net income and EPS (diluted) 11,129 6.27 Items of note Amortization of acquired intangibles2 43 35 0.02 Corporate Page 4, L13, L29 & L45 Acquisition and integration charges related to the Cowen acquis

26. Slide 26: U.S. Strategic Card Portfolio: Accounting

    U.S. Strategic Card Portfolio: Accounting Illustrative Example Values below are shown for illustrative purposes only. The percent share is representative of the agreements with the retailer card partners, but the exact split differs by partner. Illustrative Example $MM Credit Card Portfolio 1,000 Me

27. Slide 27: Q2 2025: PTPP & Operating Leverage

    Q2 2025: PTPP & Operating Leverage1,2 Modified for partners' share of SCP PCL, FX and Insurance Service Expense Q2 2025 Q1 2025 Q2 2024 TOTAL BANK SFI Reference Revenue Expenses Revenue Expenses Revenue Expenses Reported Results ($MM) 22,937 8,139 14,049 8,070 13,819 8,401 Page 2, L3 & L6 1 PTPP 14,

28. Slide 28: Net Interest Income Sensitivity (NIIS)

    Net Interest Income Sensitivity (NIIS) Strong deposit base and disciplined ALM management 25 bps change in short-term interest rates 100 bps change in interest rates across the curve  25 bps increase: $62MM increase in NII over a 12-month  100 bps increase: $679MM increase in NII over a 12-month p

29. Slide 29: Customer Activity

    Customer Activity Canadian Personal and Commercial U.S. Retail Average Volumes Global Wealth Assets2 Banking Average Volumes ($B) (US$B)1 ($B) 2 Year CAGR 9% 5% 300 600 5% 1,200 128 250 0% 500 121 1,000 112 200 105 103 2% 99 715 400 444 156 458 168 800 601 652 415 157 150 93 98 93 300 600 283 300 31

30. Slide 30: Canadian Personal & Commercial Banking

    Canadian Personal & Commercial Banking Margins, Volumes and Efficiency Net Interest Margin (NIM) Average Loans ($B)1 564 572 578 583 585 2.84% 121 122 123 126 128 2.81% 2.81% 2.82% 2.80% 444 450 454 458 458 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Personal Business Efficiency Rati

31. Slide 31: U.S. Retail

    U.S. Retail Margins, Volumes and Efficiency Net Interest Margin (NIM)1,2 Average Loans (US$B)3 192 193 193 193 187 3.12% 3.02% 3.05% 2.99% 3.01% 3.04% 98 97 96 95 93 3.00% 2.86% 2.77% 95 96 97 98 93 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Reported Adjusted Adjusted excl. Liquidit

32. Slide 32: U.S. Retail

    U.S. Retail Wealth Assets (US$B) Schwab EPU Schwab1 – Q2 2025 54 51 52 TD’s share of Schwab’s net income was C$74MM on a 49 reported basis, of which C$78MM (US$54MM) was 47 9 8 9 recorded in the U.S. Retail segment 8 7  TD's share of Schwab's net income was C$83MM on an adjusted2 basis  On Februar

33. Slide 33: Schwab Equity Pickup

    Schwab Equity Pickup Q2 2025 Reconciliation U.S. Retail P&L ($MM)1 TDBG Corporate Segment $C $US Reported Schwab Equity Pickup2 74 78 54 (4) Amortization of acquired intangibles3 9 -- -- 9 Adjusted4 Schwab Equity Pickup 83 78 54 5 Financial Statement Reference TDBG U.S. Retail Corporate Segment ENR:

34. Slide 34: Wealth Management & Insurance

    Wealth Management & Insurance Volumes and Efficiency Insurance Premiums ($MM) Average AverageLoans Loans($B) $B 1,853 1,831 7.4 7.2 1,460 1,514 1,602 6.7 6.9 6.4 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Efficiency Ratio Average AverageDeposits Deposits($B) $B 70.4% 65.7% 55.0% 56.

35. Slide 35: Wealth Management & Insurance

    Wealth Management & Insurance Wealth Revenue $MM Wealth Assets ($B) 1,738 600 1,669 1,594 1,558 1,600 287 1,481 291 236 687 233 651 654 217 632 240 596 198 214 556 1,200 188 500 542 185 523 530 489 448 512 480 800 418 415 400 400 1,137 1,160 1,211 1,164 1,079 0 300 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/2

36. Slide 36: Wholesale Banking

    Wholesale Banking Revenue Loans1 Q2 2025 Q2 2025 -1% 5% 34% $2.1B $103.1B 38% 57% 67% Corporate and Other2 Canada United States International Global Markets Investment Banking 36

37. Slide 37: Gross Lending Portfolio

    Gross Lending Portfolio Period-End Balances ($B unless otherwise noted) Q1/25 Q2/25 Canadian Personal and Commercial Portfolio 587.0 591.4 Personal 457.9 460.6 Residential Mortgages 270.5 267.4 Home Equity Lines of Credit (HELOC) 124.2 128.6 Indirect Auto 30.1 30.6 Credit Cards 20.4 21.0 Other Perso

38. Slide 38: Commercial Real Estate (CRE)

    Commercial Real Estate (CRE) Commercial Real Estate Portfolio Overview: Highlights $97B  Commercial Real Estate represented $97B or 10% of Total Bank gross loans and acceptances1 Office Retail – Portfolio is well diversified across 10% 18% geographies and sub segments Other 5% – 57% of CRE portfoli

39. Slide 39: Canadian Real Estate Secured Lending Portfolio

    Canadian Real Estate Highlights Secured Lending Portfolio  Total Canadian real estate secured lending portfolio at $399B Maturity Schedule ($B)1 – 91% of RESL portfolio is amortizing4, of $109.9 which 73% of HELOC portfolio is Variable Rate $108.0 amortizing Fixed Rate $28.5 $43.9 $55.6 – 38% varia

40. Slide 40: Canadian Personal Banking

    Canadian Personal Banking Canadian Personal Banking (Q2/25)1 Highlights Gross Loans ($B) GIL ($MM) GIL/Loans (%)  Gross impaired loans Residential Mortgages 267.4 301 0.11 decreased quarter-over- Home Equity Lines of Credit (HELOC) 128.6 196 0.15 quarter in the consumer Indirect Auto 30.6 126 0.41

41. Slide 41: Canadian Commercial and Wholesale Banking

    Canadian Commercial and Wholesale Banking Canadian Commercial and Wholesale Banking (Q2/25) Highlights Gross Loans/ GIL GIL/Loans BAs ($B) ($MM) (%)  Gross impaired loans Commercial Banking1 130.8 979 0.75 decreased in both the Wholesale Banking 96.5 327 0.34 Commercial and Wholesale lending portfo

42. Slide 42: U.S. Personal Banking

    U.S. Personal Banking U.S. Personal Banking (Q2/25) Highlights Gross Loans GIL GIL/Loans In USD unless otherwise specified ($B) ($MM) (%)  Lower gross impaired loans Residential Mortgages 33.5 387 1.15 in U.S. personal banking Home Equity Lines of Credit (HELOC)1 8.6 209 2.44 driven by U.S. Cards,

43. Slide 43: U.S. Commercial Banking

    U.S. Commercial Banking U.S. Commercial Banking (Q2/25) Highlights Gross Loans/ GIL GIL/Loans In USD unless otherwise specified BAs ($B) ($MM) (%)  Gross impaired loans Commercial Real Estate (CRE) 29.2 485 1.66 decreased quarter-over- Non-residential Real Estate 19.2 309 1.61 quarter as resolution

44. Slide 44: Provision for Credit Losses – Impaired

    Provision for Credit Losses – Impaired1 By Geographic Location Canada U.S. Total Bank Impaired PCL Rate - Personal 0.59% 0.28% 0.30% 0.29% 1.60% 0.25% 1.29% 0.50% 0.47% 0.49% 0.49% 0.24% 1.36% 1.26% 1.21% Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Q2/24 Q3/24 Q4/24 Q1/25 Q2'25 Q2/24 Q3/24 Q4/24 Q1/25 Q2/25 Canad

45. Slide 45: Endnotes on Slides 3-4

    Endnotes on Slides 3-4 Slide 3 1. The Bank's expectations regarding the restructuring program are subject to inherent uncertainties and are based on the Bank's assumptions regarding certain factors, including rate of natural attrition, talent re-deployment opportunities, years-of-service, execution

46. Slide 46: Endnotes on Slide 5

    Endnotes on Slide 5 Slide 5 1. TD Auto Finance received the highest score in the retail non-captive non-prime segment and the retail non-captive prime segment in the J.D. Power 2024-2025 Canada Dealer Financing Satisfaction Studies, which measure Canadian auto dealers’ satisfaction with their auto f

47. Slide 47: Endnotes on Slides 6-8

    Endnotes on Slides 6-8 Slide 6 1. Canadian Personal and Commercial: based on Canadian Personal & Small Business banking. U.S. Retail: based on U.S. Retail and Small Business banking. 2. Active digital users as a percentage of total customer base. Canadian Personal & Small Business Banking excludes T

48. Slide 48: Endnotes on Slide 9

    Endnotes on Slide 9 Slide 9 1. The forward-looking information on this page represents management's estimates of future costs and certain financial impacts. These estimates are subject to the risks and assumptions described on Slide 2, and are dependent on certain key factors and assumptions, includ

49. Slide 49: Endnotes on Slides 10-12

    Endnotes on Slides 10-12 Slide 10 1. Please refer to Slide 4, Endnote 1. 2. The Bank’s expectations regarding expense growth are based on the Bank’s assumptions regarding certain factors, including risk and control investments, employee-related expenses, foreign exchange impact, gross-up of the reta

50. Slide 50: Endnotes on Slides 13-15

    Endnotes on Slides 13-15 Slide 13 1. Please refer to Slide 4, Endnote 1. 2. Please refer to Slide 5, Endnote 3. 3. Please refer to Slide 5, Endnote 4. 4. Net interest margin is calculated by dividing U.S. Retail segment’s net interest income by average interest-earning assets excluding the impact re

51. Slide 51: Endnotes on Slides 16-18

    Endnotes on Slides 16-18 Slide 16 1. Please refer to Slide 4, Endnote 1. 2. Amortization of acquired intangibles relates to intangibles acquired as a result of asset acquisitions and business combinations, including the after-tax amounts for amortization of acquired intangibles relating to the share

52. Slide 52: Endnotes on Slides 19-23

    Endnotes on Slides 19-23 Slide 19 1. GIL Ratio: Gross Impaired Loans/Gross Loans & Acceptances (both are spot) by portfolio. Slide 20 1. PCL Ratio: Provision for Credit Losses on a quarterly annualized basis/Average Net Loans & Acceptances. 2. Net Total Bank and U.S. Retail PCL ratios exclude credit

53. Slide 53: Endnotes on Slides 25-27

    Endnotes on Slides 25-27 Slide 25 1. This column refers to specific page(s) and line items of the Bank's Q2 2025 Supplementary Financial Information package. 2. Please refer to Slide 16, Endnote 2. 3. Please refer to Slide 16, Endnote 4. 4. Please refer to Slide 4, Endnote 1. Slide 27 1. Please refe

54. Slide 54: Endnotes on Slides 28-31

    Endnotes on Slides 28-31 Slide 28 1. Numbers may not add due to rounding. Slide 29 1. U.S. Retail Deposits exclude Schwab insured deposit accounts. 2. Includes assets under administration (AUA) and assets under management (AUM) administered or managed by Wealth Management & Insurance, U.S. Retail, a

55. Slide 55: Endnotes on Slides 32-36

    Endnotes on Slides 32-36 Slide 32 1. TD's share of net income in US$ is the corresponding C$ net income contribution of Schwab to the U.S. Retail segment included in the Bank's Q2 2025 Report to Shareholders for the relevant quarters, divided by the average FX rate. For additional information, pleas

56. Slide 56: Endnotes on Slides 37-39

    Endnotes on Slides 37-39 Slide 37 1. U.S. HELOC includes Home Equity Lines of Credit and Home Equity Loans. 2. Includes acquired credit impaired loans and loans booked in the Corporate segment. 3. Includes loans measured at fair value through other comprehensive income. Slide 38 1. Gross Loans and B

57. Slide 57: Endnotes on Slides 40-44

    Endnotes on Slides 40-44 Slide 40 1. Excludes Wealth Management & Insurance segment and Wholesale mortgage portfolio. 2. Please refer to Slide 39, Endnote 2. 3. Please refer to Slide 39, Endnote 3. Slide 41 1. Includes Small Business Banking and Business Credit Cards. 2. Consumer includes: Food, Bev

58. Slide 58: Investor Relations Contacts

    Investor Relations Contacts Phone: (416) 308-9030 or 1 (866) 486-4826 Email: tdir@td.com Website: www.td.com/investor 58

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