Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — Investor Presentation (December 2012)
42 slides from Toronto-dominion Bank's investor presentation, December 2012
Slide 1: Investor Overview Presentation
Investor Overview Presentation December 2012
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 presentation, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission, and in other communications. In addition, represent
Slide 3: Contents
Contents TD Bank Group Overview Key Businesses Economic Update Appendix 2
Slide 4: Key Takeaways
Key Takeaways Simple Strategy, Consistent Focus Building Building the the Better Better Bank Bank North North America America • Top 10 Bank in North America1 • Leverage platform and brand for growth • One of the few banks in the world rated Aaa by Moody’s2 • Strong employment brand Retail Retail Ear
Slide 5: TD Bank Group: A Top Bank in North America
TD Bank Group A Top 10 Bank in North America Compared to: 1 Q4 2012 Canadian North American (In CAD Billions) Peers7 Peers2,8 Total Assets $811B 2nd 6th Total Deposits $488B 2nd 6th Market Cap (as of October 31, 2012) $74B 2nd 6th Adj. Net Income3 (Trailing 4 Quarters) $7.1B 2nd 6th Rpt. Net Income
Slide 6: Q4 2012 Highlights
Q4 2012 Highlights Key Themes Net Income $MM (Adjusted, where applicable)1 Solid adjusted1 EPS growth of 5% Q4/12 QoQ YoY YoY Retail2 $ 1,477 -8% 6% Wholesale 309 72% 10% Strong performances from all Corporate (29) -197% 93% segments Adjusted Net Income $ 1,757 -3% 6% Reported Net Income 1,597 -
Slide 7: Snapshot of TD
Snapshot of TD Our Businesses Canadian Personal & Commercial Wealth & Insurance U.S. Personal & Commercial Wholesale Banking Wholesale Our Results 12% Adjusted Earnings1 2012 of C$7.1B, up 10% YoY Adjusted Diluted EPS1 2012 of $7.42, up 8% YoY Canadian U.S. P&C 4 20% P&C 4 48% 2,3 TD AMT
Slide 8: Capital
Capital Highlights Tier 1 Capital Ratio1,2 13.0% Tier 1 capital ratio improved QoQ 12.0% 12.2% 12.6% 11.6% due to strong organic capital growth Remain well-positioned for evolving regulatory environment Pro forma Basel III ratio of 8.2% Q4/11 Q1/12 Q2/12 Q3/12 Q4/12 at Oct 31, 2012 Risk Weight
Slide 9: Simple Strategy, Consistent Focus, Superior Execution
Simple Strategy, Consistent Focus, Superior Execution Adjusted Earnings1,2,3 (C$MM) 4 $7,075 GR 1% e ar CAngs: 1 5-y Earni S: 5% $6,432 d P us t e dE Adj djuste A $5,228 $4,716 $4,189 $3,813 Wholesale Banking U.S. P&C Wealth & Insurance Canadian P&C 2007 2008 2009 2010 2011 2012 Retail Earnings 80%
Slide 10: Strong Focus on Risk-Return
Strong Focus on Risk-Return Adjusted Return on Risk-Weighted Assets1 Q4 2012 2.72% 2.46% 1.51% TD Canadian Peers2 U.S. Peers3 Better return for risk undertaken 1. As a result of the transition to IFRS as described on slide 8, footnote 2, the calculation of risk-weighted assets is based on IFRS for 2
Slide 11: Strong, Consistent Dividend History
Strong, Consistent Dividend History Dividends Per Share Q3/12 Q3/12 Announced Announced $0.05 $0.05 (C$) dividend increase11 dividend increase Target Target payout payout range range increased increased to to 40-50% 40-50% $2.89 th Grow d alize nu An Dividend Dividend % 11 Yield Yield 3.6%22 3.6% $0
Slide 12: Key Takeaways
Key Takeaways Building Building the the Better Better Bank Bank North North America America Retail Retail Earnings Earnings Focus Focus Franchise Franchise Businesses Businesses Risk Risk Discipline Discipline 11
Slide 13: Contents
Contents TD Bank Group Overview Key Businesses Economic Update Appendix 12
Slide 14: Key Businesses: At a Glance
Key Businesses At a Glance Adj. Earnings Canadian Retail (65%) U.S. Retail (23%) Wholesale (12%) 2012 Mix1 Wealth and Insurance Segments Business Canadian P&C2 U.S. P&C2 Wholesale Wealth and Insurance TD Ameritrade3 3 Sub-Brands 4 2006-20125 2005-20126 2009-20117 Recognized leader in service and con
Slide 15: Canadian Personal and Commercial Banking: Overview
Canadian Personal and Commercial Banking Overview Key Businesses Personal Banking Retail operations provide a full range of financial products and services. As at Q4 2012 In C$ Approximately 13 million personal and small business customers. Total Assets $285B 1,168 branches across Canada.
Slide 16: Canadian Personal and Commercial Banking: Key Messages
Canadian Personal and Commercial Banking Key Messages Lead in customer service and convenience Rated #1 by J.D. Power1 and Ipsos2 (formerly Synovate), year after year On average 45% longer branch hours than peers3 Integrated product offerings #1 or #2 market share in most retail products4
Slide 17: Canadian Personal and Commercial Banking: Performance
Canadian Personal and Commercial Banking Performance Adjusted Earnings1,2,3 (C$MM) $3 ,4 0 8 $3 ,0 9 5 $3 , 0 51 $2 , 4 2 4 $2 , 4 72 $2 ,2 53 2007 2008 2009 2 0 10 2 0 11 2 0 12 1. See slide #3 footnote #3 for definition of adjusted results. Also see starting on pg.5 of the 4th Quarter 2012 Earning
Slide 18: Wealth and Insurance: Overview
Wealth and Insurance Overview Key Businesses Direct Investing As at Q4 2012 In C$ Canada U.S. – 45.37% reported equity investment in TD Ameritrade1 Europe - U.K., Ireland and Luxembourg AUA2 $258B Advice-Based Wealth Businesses AUM3 $207B Canada Financial Planning Private Investment
Slide 19: Wealth and Insurance: Key Messages
Wealth and Insurance Key Messages Leading market positions #1 Online brokerage in Canada1 #1 Execution-only brokerage in the U.K.2 #1 Institutional Asset Management1 #1 Private Investment Counsel3 #1 Direct writer of home & auto insurance in Canada4 #1 Affinity home and auto insurance4
Slide 20: Wealth and Insurance: Performance
Wealth and Insurance Performance Earnings1,2 (C$MM) $1,367 $1,314 $209 $207 $557 $762 $769 $541 TD Ameritrade2 $641 $261 $597 Insurance $289 $194 Wealth $252 $566 $601 $501 $480 $447 $345 2007 2008 2009 2 0 10 2 0 11 2 0 12 1. The Bank transitioned from Canadian Generally Accepted Accounting Princip
Slide 21: U.S. Personal and Commercial Banking: Overview
U.S. Personal and Commercial Banking Overview Key Businesses As at Q4 2012 In C$ Personal Banking Total Assets $209B 1,315 stores More than 1,900 ATMs Total Deposits1 $170B 24/7 live customer support Approximately 8 million customers Total Loans2 $89B Adjusted $1.4B Commercial Banking Ea
Slide 22: U.S. Personal and Commercial Banking: Key Messages
U.S. Personal and Commercial Banking Key Messages Lead in customer service and convenience Open longer hours than the competition including Sunday banking in most markets Recognized by Bloomberg Markets as one of “The World’s Strongest Banks 2012”1 24/7/365 live customer contact center suppo
Slide 23: U.S. Personal and Commercial Banking: Performance
U.S. Personal and Commercial Banking Performance Adjusted Earnings1,2 ($MM) $ 1,4 2 2 $ 1,2 7 0 $ 1,0 4 2 $ 909 $ 806 $ 359 C$ US$ $328 $794 $781 $1,008 $1,289 $1,416 2007 2008 2009 2 0 10 2 0 11 2 0 12 Privatized Acquired Completed Completed Acquired Announced the Milestones TD Banknorth Commerce T
Slide 24: Wholesale Banking: Overview
Wholesale Banking Overview Key Businesses As at Q4 2012 In C$ Investment Banking Advisory, underwriting, hedging and corporate lending Risk Weighted $43B Assets Equities Earnings1 $880MM Trading, underwriting, hedging, execution services, and research Employees2 3,545 Rates and Foreign Exc
Slide 25: Wholesale Banking: Key Messages
Wholesale Banking Key Messages Focus on client-driven franchise businesses Focused on flow businesses with a presence in key global financial centres Evolved the business model by strategically repositioning the dealer to concentrate on core-client driven activities (eg: exited global structur
Slide 26: Wholesale Banking: Performance
Wholesale Banking Performance Adjusted Earnings1,2 ($MM) $1,137 $987 $880 $824 $815 $664 $65 2006 2007 2008 2009 2010 2011 2012 1. See slide #3 footnote #3 for definition of adjusted results. Also see the Wholesale segment discussion in the Business Segment Analysis section in the 2002-2011 Annual R
Slide 27: Contents
Contents TD Bank Group Overview Key Businesses Economic Update Appendix 26
Slide 28: Canada's Relative Strengths
Canada’s Relative Strengths One of the world’s most competitive economies1 Soundest banking system in the world1 Robust economic fundamentals relative to G7 economies Canadian housing market has held up well More prudent regulatory environment will ensure excesses unwind moderately Unemp
Slide 29: Solid Financial System in Canada
Solid Financial System in Canada Strong retail and commercial banks Conservative lending standards All major wholesale dealers owned by Canadian banks, with stable retail earnings base to absorb any wholesale write-offs Responsive government and central bank Proactive policies and programs
Slide 30: Canadian Mortgage Market is Different from the U.S.
Canadian Mortgage Market is Different from the U.S. Canada U.S. Conservative product offerings: fixed or variable Outstanding mortgages include earlier exotic interest rate option products (interest only, options ARMs) All mortgages are now qualified using the 5 year Borrowers often qualifie
Slide 31: North American Economy: Outlook
North American Economy Outlook 2013 will be another year of moderate growth for Canada and the U.S. Uncertainty over government policies continue to linger in the U.S. and Europe Canadian economy still tightly linked to U.S. fortunes – stronger U.S. growth helps Canada’s prospects Domestic d
Slide 32: Global Economic Outlook
Global Economic Outlook World Real GDP Growth1 Y/Y % Change 6 Global economic growth will Forecast1 moderately increase next year 4 2 0 -2 Fiscal consolidation in the U.S. 2000 2002 2004 2006 2008 2010 2012 2014 and weak global growth means North American economy to North American Real GDP Growt
Slide 33: Canadian Economic Outlook
Canadian Economic Outlook Canadian Export and U.S. Activity Index1 Y/Y % Change Forecast1 y g 25 20 15 10 Canadian economy still tightly 5 linked to U.S. fortunes, and 0 -5 better U.S. growth in medium -10 term to help Canada’s -15 U.S. Activity Index -20 Canadian Real Exports U.S. Activity Index
Slide 34: U.S. Economic Outlook
U.S. Economic Outlook Residential Real Estate Contribution to real GDP growth1 (Y/Y % Change) 1.5 Forecast1 1.0 The depressed housing market 0.5 0.0 has seriously hampered the -0.5 U.S. recovery thus far, but -1.0 signs point to housing making -1.5 a positive contribution to -2.0 2001 2002 2003 20
Slide 35: Interest Rate Outlook
Interest Rate Outlook Interest Rates, Canada and U.S.1 (%) 7 US Federal Forecast Funds Rate 6 Modest outlook and risks to the global economy mean North 5 American central banks are set to Bank of Canada Target Rate leave monetary policy at 4 exceptionally accommodative levels for a while 3 This
Slide 36: Contents
Contents TD Bank Group Overview Key Businesses Economic Update Appendix 35
Slide 37: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q3/12 Q4/12 Canadian Personal & Commercial Portfolio $ 295.8 $ 299.8 Personal $ 255.0 $ 258.1 Residential Mortgages 150.9 154.3 Home Equity Lines of Credit (HELOC) 64.3 64.2 Indirect Auto 14.0 14.0 Unsecured Lines of Credit
Slide 38: Credit Quality
Credit Quality Allowance for GILs / Gross NCOs / Avg (In %) Credit Losses / Loans + Bas Loans + BAs GILs 1 0.61 95.9 0.09 Cdn Peer Avg1 0.85 85.6 0.33 U.S. Peer Avg2 4.04 69.47 1.43 Well-positioned loan portfolio 1. Results are as of Q4/12 which ended on October 31, 2012. Canadian Peers include othe
Slide 39: Credit Ratings
Credit Ratings Ratings¹ Moody's S&P Fitch DBRS Aaa AA- AA- AA Strong credit ratings 38 1. Ratings on long term debt (deposits) of The Toronto-Dominion Bank, as at October 31, 2012. Credit ratings are not recommendations to purchase, sell, or hold a financial obligation inasmuch as they do not commen
Slide 40: Managing Environmental, Social, Governance Risks & Opportunities
Managing Environmental, Social, Governance Risks & Opportunities Awards Named as one of Canada’s “Most Responsible Companies” by Macleans magazine and Sustainalytics (2011 and 2012) Named as one of the “Best 50 Corporate Citizens in Canada” by Corporate Knights (2011 and 2012) Recognized by
Slide 41: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Grand Prix for Best Overall Investor Relations: Large Cap Best Investor Relations by Sector: Financial Services Website: Best Investment www.td.com/investor Community Meetings Best Investor Relations by a CEO: Large
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