Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Financial Group — Investor Presentation (September 2009)
34 slides from Toronto-dominion Bank's investor presentation, September 2009
Slide 1: Investor Presentation
Investor Presentation September 2009
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements From time to time, the Bank makes written and oral forward-looking statements, including in this document, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission (SEC), and in other communications. In addition, the Bank’s
Slide 3: Contents
Contents TD Bank Financial Group Overview Key Businesses Canadian Economy and Financial System Other Information 3
Slide 4: Key Takeaways
TD Bank Financial Group Key Takeaways n The first truly North American bank • Leader in customer service and convenience in Canada and the U.S. • Leveraging North American platform, synergies and brand for growth o Lower risk retail focus • 80% adjusted earnings from retail1,2 • Better return for ri
Slide 5: The first truly North American bank
TD Bank Financial Group The first truly North American bank Compared to: Q3 20091 Canadian North American (In U.S.$B)2 Peers7 Peers8 Total Assets $505 2nd 6th Total Deposits $361 2nd 6th Market Cap3 $52.7 2nd 6th Adj. Net Income4 (Trailing 4 Quarters) $3.6 2nd 5th Adj. Retail Earnings5 (Trailing 4 Q
Slide 6: Premium Earnings Mix
Premium Earnings Mix11 YTD Q3 2009 C$3.5B U.S. Retail 26% Canadian P&C2 6% 5% 21% Global Wealth3 48% TD Ameritrade3,4 20% U.S. P&C2 Canadian Retail 54% Wholesale 80% of earnings from retail operations 1. Based on adjusted earnings as described on slide #4. 2. “P&C” refers to Personal and Commercial
Slide 7: Strong focus on risk-return
Strong focus on risk-return Return on Risk-Weighted Assets1,2,3 2.25% 1.78% 58% greater than average 0.50% TD Canadian Peers U.S. Peers Better return for risk undertaken 1. TD based on YTD Q3 2009 adjusted earnings, as described on slide #4. Return on risk-weighted assets is adjusted net income avai
Slide 8: Q3 2009 Financial Results
Q3 2009 Financial Results P&L Q3 2009 Q2 2009 Q3 2008 QoQ YoY (C$MM)1 Revenue $ 4,667 $ 4,325 $ 4,037 8% 16% Provision for Credit Losses 557 656 288 -15% 93% Expenses 3,045 3,051 2,701 0% 13% Adjusted Net Income $ 1,303 $ 1,089 $ 1,115 20% 17% Adjusted EPS (diluted) $ 1.47 $ 1.23 $ 1.35 20% 9% Tier
Slide 9: Managing through Current Environment
TD Bank Financial Group: Managing through through Current Current Environment Environment Get across the recession valley ̶ Carefully manage capital, funding, liquidity and risk ; Keep our business model intact ̶ Preserve our performance, convenience and service culture ; Emerge with momentum on our
Slide 10: Consistent, retail-focused strategy
Consistent, retail-focused strategy Adjusted Earnings1 GR % (C$MM) r CA s : 1 4 ea i ng % $4,189 5-y Earn S: 10 $3,813 e d EP $3,541 ust ed Adj djust A $3,376 $2,861 $2,485 Wholesale Banking $1,945 U.S. P&C Wealth Management Canadian P&C 2003 2004 2005 2006 2007 2008 YTD Q3 2009 Retail as % of Adj.
Slide 11: Key Takeaways
TD Bank Financial Group Key Takeaways n The first truly North American bank o Lower risk retail focus p Conservative risk management q Consistently building for the future 11
Slide 12: Contents
Contents TD Bank Financial Group Overview Key Businesses Canadian Economy and Financial System Other Information 12
Slide 13: Canadian Personal and Commercial Banking
Canadian Personal and Commercial Banking Lead in customer service and convenience ̶ Rated #1 by J.D. Power1 and Synovate2 ̶ 50% longer branch hours than peers ̶ Excellent brand recognition Strong market position ̶ #1 or #2 market share in most retail products3 ̶ Client referrals through integrat
Slide 14: Canadian Personal and Commercial Banking Earnings
Canadian Personal and Commercial Banking Earnings ($MM) 1 4% A GR 1 $2,424 - year C 5 $2,253 $1,966 $1,850 $1,702 $1,450 $1,242 2003 2004 2005 2006 2007 2008 YTD Q3 2009 1. 5-year CAGR is calculated based on compound annual growth from 2003 to 2008. Also see the Canadian P&C segment discussion in th
Slide 15: Wealth Management
Wealth Management Leading market positions ̶ #1 online brokerage in Canada1 ̶ #2 in mutual fund assets2 ̶ #2 execution-only brokerage in the U.K.3 Continue focused investments for the future ̶ Adding client-facing advisors ̶ Strategically growing diversified wealth offerings Investment in TD A
Slide 16: Wealth Management Earnings
Wealth Management Earnings ($MM) 1 26% r CAGR $762 $769 ea 5-y $590 $261 $289 $432 $180 $441 $352 $108 $193 $243 $85 U.S. Wealth $501 $480 Management2 $61 $410 $324 $267 $248 Canadian Wealth $182 Management 2003 2004 2005 2006 2007 2008 YTD Q3 2009 1. 5-year CAGR is calculated based on compound annu
Slide 17: U.S. Personal and Commercial Banking
U.S. Personal and Commercial Banking Lead in customer service and convenience ̶ Rated #1 by J.D. Power for Customer Satisfaction1 ̶ 50% longer hours than the competition2 ̶ Unique brand positioning and culture: “America’s Most Convenient Bank” Enviable footprint with continued organic growth ̶ M
Slide 18: U.S. Personal and Commercial Banking Earnings
U.S. Personal and Commercial Banking Adjusted Earnings1 (C$MM) 2 $830 72% $806 GR CA -year 3 $359 $255 $158 2005 2006 2007 2008 YTD Q3 2009 1. See slide #4 for definition of Adjusted Earnings. Also see the U.S. P&C segment discussion in the Business Segment Analysis section in the 2008, 2007, and 20
Slide 19: Wholesale Banking
Wholesale Banking Focus on client-driven franchise businesses ̶ Further deepen customer relationships, cross-selling multiple products and services ̶ Strategic decisions before financial crisis to reduce corporate lending risk profile and exit global structured products Integrated North American
Slide 20: Wholesale Banking Adjusted Earnings
Wholesale Banking Adjusted Earnings1 ($MM) $824 $765 $664 $588 $529 $551 $65 2003 2004 2005 2006 2007 2008 YTD Q3 2009 ROIC 9% 25% 22% 28% 30% 2% 26% 1. See slide #4 for definition of Adjusted Earnings. Also see the Wholesale segment discussion in the Business Segment Analysis section in the 2008, 2
Slide 21: Contents
Contents TD Bank Financial Group Overview Key Businesses Canadian Economy and Financial System Other Information 21
Slide 22: Why Canadian Economy Outperforms
Why Canadian Economy Outperforms Canada’s economy is beginning to show signs of a recovery Much of the strength is originating from the real estate market, which has been improving since the beginning of the year, a far cry from the U.S. real estate market which has just begun to hit its trough
Slide 23: Canadian Strengths
Canadian Strengths Average Annual Real GDP1 Growth, 1997 - 2008 Canadian economy 3.13 outperformed over 2.92 2.74 last decade 2.17 1.03 Canada U.S. UK Euro-area Japan Canadian economy in Canadian Real GDP Growth2 a recession, but tide will turn as global Y/Y % chg. 6 economy recovers and 5 Forecast
Slide 24: Near Term Slowdown
Near Term Slowdown TD Commodity Price Index1 Commodity prices Index; 1997=100 have corrected from 400 350 Forecast record high levels, but 300 Overall TDCI have most likely 250 200 bottomed out 150 100 TDCI Ex. Energy 50 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 U.S. and Can
Slide 25: Long Term Support
Long Term Support Canadian Unemployment1 Unemployment will Per cent continue to rise, but 14 13 Forecast will likely remain 12 11 below prior peaks 10 9 8 7 6 5 4 19 7 0 19 7 3 19 7 6 19 7 9 19 8 2 19 8 5 19 8 8 19 9 1 19 9 4 19 9 7 2 0 0 0 2 0 0 3 2 0 0 6 2 0 0 9 Canadian Federal Finances2 Governme
Slide 26: 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 ̶ Extension of program to buy back government-guar
Slide 27: Canadian Mortgage Market is Different from the U.S.
Canadian Mortgage Market is Different from the U.S. Canada U.S. Outstanding mortgages include earlier Conservative product offerings: Fixed or exotic products (interest only, options variable interest rate option ARMs) Borrowers often qualified using Product Borrowers typically qualified usi
Slide 28: Contents
Contents TD Bank Financial Group Overview Key Businesses Canadian Economy and Financial System Other Information 28
Slide 29: Gross Lending Portfolio: Loans and Acceptances
Gross Lending Portfolio: Loans and Acceptances Balances as of Q3 2009 (C$B) Commercial Banking (including Small Other Business Banking) Personal 11% 12% U.S. P&C $30B Residential $28B Mtgs/ 23% Other Personal Home Equity 2% $57B 7% $4.5B $16B Commercial Real Estate 5% $13B Commercial & Industrial Re
Slide 30: Credit Quality
Credit Quality Allowance for GILs / Avg NCOs / Avg % Loans + BAs Credit Losses / Loans + BAs GILs 0.79 116 0.61 Cdn Peer Avg 1.39 81 0.70 U.S. Peer Avg 2.71 138 3.09 Well-positioned loan portfolio 1. TD and Canadian Peers results are as of Q3/09. U.S. peers results are as of Q2/09. Canadian Peers in
Slide 31: Credit Ratings
Credit Ratings Rating¹ Moody's S&P Fitch DBRS Aaa AA- AA- AA Strong credit ratings 1. As at July 31, 2009. Moody's: Issuer Rating, S&P: LT Foreign Issuer Credit, Fitch: LT Issuer Default Rating, DBRS: Senior Unsecured Debt. 31
Slide 32: Managing Environmental, Social, Governance Risks & Opportunities
Managing Environmental, Social, Governance Risks & Opportunities One of the top 100 most sustainable companies in the world1 ̶ One of only 5 companies in Canada Recognized by sustainability indices ̶ Dow Jones Sustainability Index North America ̶ Jantzi Social Index ̶ KLD Global Sustainability I
Slide 33: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Best Investor Relations by Sector: Financial Services Website: Best Investor Relations by www.td.com/investor a CEO Best Retail Investor Communications 33
Slide 34: Building the better bank every day
Building the better bank every day D Bank Financial Group
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