Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — TD Bank Group — Q3 2015 Earnings Presentation
28 slides from Toronto-dominion Bank's earnings presentation, Aug 27, 2015
Slide 1: TD Bank Group Quarterly Results Presentation Q3 2015
TD Bank Group Quarterly Results Presentation Q3 2015 Thursday August 27th, 2015
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
Slide 3: Strategic Overview
Strategic Overview Record financial results in Q3 2015 Adjusted1 earnings of $2.3B, up 5% YoY Adjusted EPS up 4% YoY Strong results in Canadian Retail and Wholesale Solid fundamentals in U.S. Retail Positive operating leverage Strong credit quality continues 1. The Bank prepares its co
Slide 4: Q3 2015 Highlights
Q3 2015 Highlights Key Themes Financial Highlights $MM Adjusted1 EPS of $1.20, up 4% YoY P&L Summary Adjusted1 Adjusted Net Income up 5% from Q3/14 Adjusted1 Q3/15 Q2/15 Q3/14 Strong contribution from both Retail and Wholesale Revenue2 $ 7,385 7,178 6,711 businesses Expenses 4,261 4,243 3,912
Slide 5: Q3 2015 Earnings: Items of Note
Q3 2015 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $2,266 $1.19 Pre Tax After Tax Items of Note EPS (MM) (MM) Amortization of intangibles1 $70 $62 $0.03 Litigation and litigation-related charge/reserve2 ($39) ($24) ($0.01) Fair value of derivatives hedging the reclassified
Slide 6: Canadian Retail
Canadian Retail Key Themes P&L $MM Adjusted, where applicable1 Adjusted1 net income up 8% YoY Q3/15 QoQ YoY Good loan, deposit and wealth asset growth Revenue $ 5,011 5% 2% Strong Insurance earnings Insurance Claims 600 6% -22% Revenue2 (net of claims) up 6% YoY PCL 237 -1% 4% Good volume,
Slide 7: U.S. Retail
U.S. Retail Key Themes P&L US$MM Adjusted, where applicable1 Q3/15 QoQ YoY Adjusted1 net income flat YoY Revenue $ 1,911 3% 1% Revenue up 1% YoY PCL 161 55% 36% Good volume and fee growth partially offset by Expenses (adjusted) 1,209 -1% -1% margin compression Expenses (reported) 1,179 -7% -3%
Slide 8: Wholesale Banking
Wholesale Banking Key Themes P&L $MM Net income up 11% YoY Q3/15 QoQ YoY Revenue $ 765 -2% 13% Revenue up 13% YoY PCL 2 NA -60% Higher fixed income and equity trading, M&A fees and corporate lending, partially offset by Expenses 431 -4% 10% lower underwriting versus a strong prior year Net Inc
Slide 9: Corporate Segment
Corporate Segment Key Themes P&L $MM Adjusted, where applicable1 Adjusted1 net income down Q3/15 Q2/15 Q3/14 $108MM YoY Net Corporate Expenses $ (193) $ (177) $ (170) Reflects lower favourable tax items and Other 4 10 90 ongoing investment in enterprise and regulatory projects Non-Controlling In
Slide 10: Capital & Liquidity
Capital & Liquidity Highlights Basel III Common Equity Tier 11 Basel III Common Equity Tier 1 ratio 10.1% 9.9% 10.1% Increase QoQ reflects solid 9.3% 9.4% 9.5% organic capital generation partly offset by increased RWA Leverage ratio of 3.7% Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Liquidity coverage ra
Slide 11: Credit Portfolio Highlights
Credit Portfolio Highlights Highlights PCL Ratio (bps)1 Ongoing strong performance and growth across the broad portfolio 33 33 32 Loss rates remain at low levels 29 28 PCL and GIL ratios continue to exhibit a stable trend Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 GIL Ratio (bps)2 57 57 56 56 55 Great quar
Slide 12: Appendix
Appendix
Slide 13: Q3 2015 Earnings: Items of Note
Q3 2015 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $2,266 $1.19 Revenue/ Pre Tax After Tax Items of note EPS Segment Expense (MM) (MM) Line Item4 Amortization of intangibles1 $70 $62 $0.03 Corporate pg 9, line 10 Litigation and litigation-related charge/reserve2 ($39) ($24)
Slide 14: Canadian Retail Metrics
Canadian Retail Metrics Net Interest Margin Average Deposits $B On Average Earning Assets 250 255 259 260 265 18 18 19 19 17 2.98% 81 83 81 84 2.92% 78 2.88% 2.89% 2.88% 155 157 158 160 162 On Loans Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Personal Business Wealth 2.00% 2.01% 1.97% 1.94% 1.97% Average Loans $B
Slide 15: Canadian Wealth
Canadian Wealth Wealth Revenue Wealth Retail vs. Institutional AUM1 $MM $B 856 875 825 837 841 112 117 130 115 116 118 127 131 116 139 129 124 121 121 119 117 114 115 113 112 592 599 613 642 571 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Wealth Fee & Other Wealth Transaction Wealth
Slide 16: US Retail
US Retail Loans and Deposit Growth Average Deposits Average Loans US$B US$B 119 122 114 117 200 201 204 206 111 195 75 75 75 75 63 65 72 56 58 61 55 57 57 57 58 55 56 56 56 57 68 68 69 72 73 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 Q3/14 Q4/14 Q1/15 Q2/15 Q3/15 1 Personal Business TD Ameritrade IDAs Personal C
Slide 17: TD Ameritrade
TD Ameritrade Highlights TD Bank Group’s Share of TD Ameritrade’s Net Income1 TD’s share of TD Ameritrade’s net US$MM income was C$92 MM in Q3/15, up 21% YoY mainly due to: FX translation and increased asset- based revenue, partially offset by higher $79 $77 operating expenses $74 $69 $69 TD Ame
Slide 18: Canadian Housing Market
Canadian Housing Market Portfolio Q3/15 Gross Loans Outstanding $241 B Canadian RESL Percentage Insured 58% Uninsured Residential Mortgages Current LTV1 59% Condo Borrower Gross Loans Outstanding $31 B (Residential Mortgages) Percentage Insured 68% Gross Loans Outstanding $6 B Condo Borrower 35% (HE
Slide 19: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q2/15 Q3/15 Canadian Retail Portfolio $ 342.4 $ 350.6 Personal $ 287.2 $ 293.6 Residential Mortgages 175.5 180.2 Home Equity Lines of Credit (HELOC) 60.3 60.9 Indirect Auto 17.5 18.3 Unsecured Lines of Credit 9.3 9.5 Credit
Slide 20: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights $1,206 TD GIL Formations ratio $1,163 $1,168 remains stable $1,092 $1,124 $14 / 5 bps $16 / 5bps US GIL Formations increase driven by ongoing refinancing $452 / 36 bps $466 / 34 bps of legacy interest only $5
Slide 21: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights TD GIL ratio remains $3,077 $2,967 $2,905 consistent, taking into account $13 / 4 bps $36 / 12 bps portfolio growth and the $2,636 $2,731 $28 / 9 bps $12 / 5 bps negative impact of foreign $21 / 9 bps exchange $1,849 / 124 bp
Slide 22: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio PCL1: $MM and Ratios2 Highlights PCL rate remains at low levels U.S. PCL normalized when $443 taking into account: $397 $396 $1 / NM Volume Growth $368 $329 $6 / NM Typical seasonal $ 3 / NM fluctuations $164 / 53 bps $206 / 54 bps $152 / 43 bps
Slide 23: Canadian Personal Banking
Canadian Personal Banking Q3/15 Canadian Personal Banking1 Gross Loans ($B) GIL/ Loans GIL ($MM) PCL2 ($MM) Highlights Residential Mortgages 180 0.22% 403 7 Credit quality remains strong in Home Equity Lines of Credit (HELOC) 61 0.33% 199 2 the Canadian Personal portfolio Indirect Auto 18 0.22% 41
Slide 24: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q3/15 Gross Highlights Canadian Commercial and Loans/BAs GIL PCL1 Wholesale Banking ($B) ($MM) ($MM) Canadian Commercial and Commercial Banking2 57 152 37 Wholesale Banking portfolios Wholesale 31 36 1 continue to perform well Total Canadian Commercial and
Slide 25: U.S. Personal Banking - U.S. Dollars
U.S. Personal Banking- U.S. Dollars Q3/15 Highlights Gross Loans GIL/ GIL U.S. Personal Banking1 ($B) Loans ($MM) PCL2 ($MM) Continued good asset quality Residential Mortgages 21 1.48% 305 3 in U.S. Personal Home Equity Lines of Credit (HELOC)3 10 4.97% 507 25 US GIL increase driven by Indirect
Slide 26: U.S. Commercial Banking - U.S. Dollars
U.S. Commercial Banking - U.S. Dollars Q3/15 U.S. Commercial Banking1 Gross Loans/BAs GIL ($MM) PCL2 ($MM) Highlights ($B) Commercial Real Estate (CRE) 18 204 0 Sustained strong portfolio Non-residential Real Estate 14 140 0 quality in U.S. Commercial Residential Real Estate 4 64 0 Banking Commerc
Slide 27: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: Grand Prix for Best Overall Investor Relations: Large Cap tdir@td.com Best Investor Relations by Sector: Financial Services Website: Best Investor Relations www.td.com/investor by a CFO: Large Cap Best Investor Relations Office
Slide 28: TD Bank Group Quarterly Results Presentation Q3 2015
TD Bank Group Quarterly Results Presentation Q3 2015 Thursday August 27th, 2015