Toronto-Dominion Bank · TSX:TD

Toronto-Dominion Bank — TD Bank Group — Q2 2016 Earnings Presentation

28 slides from Toronto-Dominion Bank's earnings presentation, May 26, 2016

  1. Slide 1: TD Bank Group Q2 2016 Quarterly Results Presentation

    TD Bank Group Q2 2016 Quarterly Results Presentation Thursday May 26th, 2016

  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: Overview

    Overview Adjusted1 earnings of $2.3B, up 5% YoY  Adjusted retail2 net income up 6% YoY  Good performance in Wholesale  Earned through higher credit provisions  Credit quality remains strong overall Adjusted EPS of $1.20, up 5% YoY Common Equity Tier 1 ratio of 10.1% 1. The Bank prepares its cons

  4. Slide 4: Accomplishments

    Accomplishments Leader in Customer Satisfaction  #1 Pension Fund Manager for the 5th consecutive year1  "Highest in Customer Satisfaction with Retail Banking in Florida" by J.D. Power2 Expanding our Digital Capabilities  MySpend  Customer service via Facebook Messenger  Apple PayTM and UGO3 1.

  5. Slide 5: Q2 2016 Highlights

    Q2 2016 Highlights Financial Highlights $MM Total Bank (Adjusted1 YoY) Adjusted1 Q2/16 Q1/16 Q2/15 Revenue 8,317 8,564 7,742 EPS of $1.20 up 5% PCL 584 642 375 Net Income up 5% Expenses 4,556 4,579 4,243 Net Income 2,282 2,247 2,169 Revenue up 7% Diluted EPS ($) 1.20 1.18 1.14  Up 4% ex FX and acqu

  6. Slide 6: Canadian Retail

    Canadian Retail Highlights (YoY) P&L $MM Q2/16 QoQ YoY Net income up 2% Revenue 4,887 -3% 2% Insurance Claims 530 -19% -6% Revenue up 2% Revenue Net of Claims1 4,357 0% 3%  Loan volumes up 6% PCL 262 15% 10%  Deposit volumes up 6% Expenses 2,095 1% 1%  Wealth assets2 up 3% Net Income 1,464 -3% 2%

  7. Slide 7: U.S. Retail

    U.S. Retail Highlights US$MM (YoY) P&L US$MM (except where noted) Q2/16 QoQ YoY Q2/16 QoQ YoY Adjusted net income up 6% Adjusted1 Reported Revenue up 6% Revenue 1,725 -1% 6% 1,725 -1% 6% PCL 123 -23% 52% 123 -23% 52%  Loan volumes up 13% Expenses 1,067 4% 4% 1,067 4% 0%  Deposit volumes up 10% U.S

  8. Slide 8: Wholesale Banking

    Wholesale Banking Highlights (YoY) P&L $MM Net income down 11% Q2/16 QoQ YoY Revenue 766 15% -2% Revenue down 2% PCL 50 >100% >100%  Lower fixed income trading and equity Expenses 441 3% -1% underwriting fees Net Income 219 36% -11%  Partially offset by higher advisory and corporate ROE 14.8% lend

  9. Slide 9: Corporate Segment

    Corporate Segment Highlights (YoY) P&L $MM Q2/16 Q1/16 Q2/15 Adjusted loss decreased $19MM Net Corporate Expenses (196) (203) (177)  Ongoing investment in enterprise and Other 48 (4) 10 regulatory projects Non-Controlling Interests 28 29 28  Higher positive tax items and higher treasury revenue Ne

  10. Slide 10: Capital & Liquidity

    Capital & Liquidity Highlights Common Equity Tier 11 Common Equity Tier 1 ratio of 10.1% Q1 2016 CET1 Ratio 9.9% Leverage ratio of 3.8% Internal capital generation 25 bps Unrealized gains on AFS securities within AOCI 6 bps Liquidity coverage ratio of 128% Increase in common shares 3 bps RWA increas

  11. Slide 11: Gross Impaired Loan Formations

    Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights $1,717  Canadian Retail Formations constant at 19bps over the past $1,453 five quarters $1,338 $1,206 $142 / 38 bps  U.S. GIL Formations quarterly $1,124 $33 / 10bps decrease of $384MM driven by: $14 / 5bps $1,

  12. Slide 12: Gross Impaired Loans (GIL)

    Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights $3,799 $3,567  Canadian Retail GIL stable for $39 / 10 bps $3,244 the past five quarters $3,077 $178 / 48 bps $2,905 $55 / 16 bps  U.S. GIL quarterly decrease of $36 / 12 bps $28 / 9 bps $353MM driven by:  $297MM due to stre

  13. Slide 13: Provision for Credit Losses (PCL)

    Provision for Credit Losses (PCL) By Portfolio Highlights PCL1: $MM and Ratios2 $648  Canadian and U.S. Retail credit $10 / 11 bps $592 quality remains strong with loss $550 $65 / NM rates of 30 bps and 51 bps $48 / 53 bps $11 / 14 bps respectively $443 $36 / NM $60 / NM  U.S. Retail6 $123MM quart

  14. Slide 14: Oil and Gas Exposure

    Oil and Gas Exposure Corporate and Commercial Outstandings Highlights by Sector ($B):  Oil and Gas Producers and Services $3.8 outstandings remain less than 1% of total gross loans and acceptances:  Four new formations in Wholesale in Oil & $1.4 / 37% Gas  $45MM increase in specific allowances 

  15. Slide 15: Appendix

    Appendix

  16. Slide 16: Q2 2016 Earnings: Items of Note

    Q2 2016 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $2,052 $1.07 Revenue/ Pre Tax After Tax Items of note EPS Segment Expense (MM) (MM) Line Item4 Amortization of intangibles1 $69 $63 $0.04 Corporate page 9, line 10 Fair value of derivatives hedging the reclassified $58 $51

  17. Slide 17: Canadian Retail

    Canadian Retail Net Interest Margin Average Deposits $B 264 268 272 274 259 19 19 19 20 19 2.89% 2.88% 84 84 85 85 81 2.84% 2.80% 2.77% 159 161 165 167 169 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Personal Business Wealth Efficiency Ratio Average Loans $B 347 354 359 361 341 56 57

  18. Slide 18: Canadian Wealth

    Canadian Wealth Wealth Revenue $MM Wealth Assets $B 875 864 879 883 856 321 117 113 118 116 312 314 310 308 112 116 115 112 133 254 131 244 249 245 247 613 642 636 649 634 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Fee & Other Transaction NII AUA AUM 18

  19. Slide 19: US Retail

    US Retail Net Interest Margin Average Deposits US$B 214 218 224 204 206 3.14% 79 81 84 3.11% 3.11% 75 76 3.08% 3.05% 57 58 61 62 62 72 73 73 75 78 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Personal Business TD Ameritrade IDAs 2 Adjusted1 Efficiency Ratio Average Loans US$B 134 134

  20. Slide 20: U.S. Wealth

    U.S. Wealth Wealth Assets US$B TD Ameritrade1 77 TD’s share of TD Ameritrade’s net 73 74 72 71 income was C$108 MM in Q2/16, up 26% YoY mainly due to:  FX translation, asset growth and higher trading volumes TD Ameritrade results:  Net income US$205 MM in Q2/16, up 8% YoY  Average trades per day

  21. Slide 21: Canadian Housing Market

    Canadian Housing Market Portfolio Q2/16 Gross Loans Outstanding $248 B Canadian RESL Percentage Insured 53% Uninsured Residential Mortgages Current LTV1 58% Condo Mortgage Gross Loans Outstanding $32 B Percentage Insured 63% Gross Loans Outstanding $6 B Condo HELOC Percentage Insured 30% Condo Borro

  22. Slide 22: Gross Lending Portfolio

    Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q1/16 Q2/16 Canadian Retail Portfolio $ 359.2 $ 361.9 Personal $ 299.8 $ 300.9 Residential Mortgages 185.9 185.7 Home Equity Lines of Credit (HELOC) 61.2 62.0 Indirect Auto 19.2 19.7 Unsecured Lines of Credit 9.6 9.6 Credit

  23. Slide 23: Canadian Personal Banking

    Canadian Personal Banking Q2/16 Gross Loans GIL GIL / Highlights Canadian Personal Banking1 ($B) ($MM) Loans  Credit quality remains Residential Mortgages 186 428 0.23% strong in the Canadian Home Equity Lines of Credit (HELOC) 62 164 0.26% Indirect Auto 19 61 0.31% Personal portfolio Unsecured Lin

  24. Slide 24: Canadian Commercial and Wholesale Banking

    Canadian Commercial and Wholesale Banking Q2/16 Canadian Commercial and Gross Highlights GIL GIL/ Loans/BAs Wholesale Banking ($B) ($MM) Loans  Canadian Commercial Commercial Banking1 61 169 0.28% portfolio continues to Wholesale 37 178 0.48% perform well Total Canadian Commercial and Wholesale $98

  25. Slide 25: U.S. Personal Banking – U.S. Dollars

    U.S. Personal Banking – U.S. Dollars Q2/16 U.S. Personal Banking1 Gross Loans GIL GIL / Highlights ($B) ($MM) Loans Residential Mortgages 20 328 1.62%  Good asset quality in U.S. Home Equity Lines of Credit (HELOC)2 10 822 8.19% Personal Indirect Auto 20 135 0.67%  U.S. GIL decrease primarily Cred

  26. Slide 26: U.S. Commercial Banking – U.S. Dollars

    U.S. Commercial Banking – U.S. Dollars Q2/16 U.S. Commercial Banking1 Gross Loans GIL GIL/ Highlights / BAs ($B) ($MM) Loans Commercial Real Estate (CRE) 20 151 0.76%  Continuing portfolio growth Non-residential Real Estate 15 98 0.65% and good quality in U.S. Residential Real Estate 5 53 1.06% Com

  27. Slide 27: Investor Relations Contacts

    Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Website: Best Investor Relations by Sector: Financial Services www.td.com/investor Best Corporate Governance

  28. Slide 28: TD Bank Group Q2 2016 Quarterly Results Presentation

    TD Bank Group Q2 2016 Quarterly Results Presentation Thursday May 26th, 2016

TD Bank Group — Q2 2016 Earnings Presentation on 6ix