Home > TD Bank Group Investor Presentation

TD Bank Group Investor Presentation

Page 1
TD Bank Group Investor Presentation
Q4 2013

Page 2
1
Caution regarding forward-looking statements
From time to time, the Bank makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission, and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media and others. All such statements are made pursuant to the ��safe harbour�� provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements made in this document, the Bank��s 2013 MD&A under the headings ��Economic Summary and Outlook��, for each business segment ��Business Outlook and Focus for 2014�� and in other statements regarding the Bank��s objectives and priorities for 2014 and beyond and strategies to achieve them, and the Bank��s anticipated financial performance. Forward-looking statements are typically identified by words such as ��will��, ��should��, ��believe��, ��expect��, ��anticipate��, ��intend��, ��estimate��, ��plan��, ��may��, and ��could��. By their very nature, these forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the uncertainty related to the physical, financial, economic, political, and regulatory environments, such risks and uncertainties – many of which are beyond the Bank��s control and the effects of which can be difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause such differences include: credit, market (including equity, commodity, foreign exchange, and interest rate), liquidity, operational (including technology), reputational, insurance, strategic, regulatory, legal, environmental, capital adequacy, and other risks. Examples of such risk factors include the general business and economic conditions in the regions in which the Bank operates; disruptions in or attacks (including cyber attacks) on the Bank��s information technology, internet, network access or other voice or data communications systems or services; the evolution of various types of fraud to which the Bank is exposed; the failure of third parties to comply with their obligations to the Bank or its affiliates relating to the care and control of information; the impact of recent legislative and regulatory developments; the overall difficult litigation environment, including in the United States; changes to the Bank��s credit ratings; changes in currency and interest rates; increased funding costs for credit due to market illiquidity and competition for funding; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events. We caution that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank��s results. For more detailed information, please see the ��Risk Factors and Management�� section of the 2013 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any transactions discussed under the heading ��Significant Events�� in the relevant MD&A, which applicable releases may be found on www.td.com. All such factors should be considered carefully, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to the Bank and we caution readers not to place undue reliance on the Bank��s forward-looking statements. Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2013 MD&A under the headings ��Economic Summary and Outlook��, and for each business segment, ��Business Outlook and Focus for 2014��, each as updated in subsequently filed quarterly reports to shareholders. Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank��s shareholders and analysts in understanding the Bank��s financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by or on its behalf, except as required under applicable securities legislation.

Page 3
2
TD Bank Group – Key Messages
Top 10 Retail Focused North American Bank
1
Proven Performance Strong Balance Sheet and Capital Position Focused on Growth Opportunities
4 2 3
5th
largest bank by Total Assets1
6th
largest bank by Market Cap1 Targeting 7-10% adjusted EPS growth over the medium term2 Highly rated by all major credit rating agencies Delivering
top tier long
term shareholder returns
1. See slide 6. 2. See slide 4, footnote 3, for definition of adjusted results.

Page 4
3
TD Bank Group
Our Businesses
Canadian Personal & Commercial Wholesale U.S. Personal & Commercial Wealth & Insurance

Direct investing

Advice-based wealth business

Asset management

Insurance
2,496
Business Locations1
Q4 20132 (C$) CAD P&C U.S. P&C
Total Deposits3 $228B $198B Total Loans4 $314B $109B Rpt. Earnings5 $3.7B $1.5B Adj. Earnings5 $3.8B $1.6B Customers 14MM 8MM Employees6 28,418 24,797
Lower-risk retail focused North American bank
1. Number of North American retail outlets at the end of Q4/13. 2. Q4/13 is the period from August 1, 2013 to October 31, 2013. 3. Total Deposits based on total of average personal and business deposits during Q4/13. U.S. deposits include TD Ameritrade Insured Deposit Accounts (IDAs). 4. Total Loans based on total of average personal and business loans during Q4/13. 5. For trailing four quarters ended Q4/13 (i.e., full fiscal 2013). See slide 4, footnote 3 for definition of adjusted results. 6. Average number of full-time equivalent staff in these segments during Q4/13.

Personal banking, credit cards and auto finance

Small business and commercial banking

Personal banking, credit cards and auto finance

Small business and commercial banking

Corporate and specialty banking

Research

Investment banking

Capital markets

Global transaction banking

Page 5
4
Simple Strategy, Consistent Focus
Building the Better Bank
Franchise Businesses Retail Earnings Focus Risk Discipline North America

Top 10 Bank in North America1

One of only a few banks globally to be rated Aa1 by Moody��s2

Leverage platform and brand for growth

Strong employment brand

Leader in customer service and convenience

Over 80% of adjusted earnings from retail3,4

Repeatable and growing earnings stream

Focus on customer-driven products

Only take risks we understand

Systematically eliminate tail risk

Strong organic growth engine

Better return for risk undertaken5

Operating a franchise dealer of the future

Consistently reinvest in our competitive advantages

Robust capital and liquidity management

Culture and policies aligned with risk philosophy
Superior execution
1. See slide 6. 2. For long term debt (deposits) of The Toronto-Dominion Bank, as at October 31, 2013. Credit ratings are not recommendations to purchase, sell, or hold a financial obligation inasmuch as they do not comment on market price or suitability for a particular investor. Ratings are subject to revision or withdrawal at any time by the rating organization. 3. Based on Q4/13 adjusted earnings. Effective November 1, 2011, the Bank prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS), the current generally accepted accounting principles (GAAP), and refers to results prepared in accordance with IFRS as the ��reported�� results. The Bank also utilizes non-GAAP financial measures to arrive at "adjusted" results (i.e. reported results excluding ��items of note��, net of income taxes) to assess each of its businesses and measure overall Bank performance. Please see "How the Bank Reports" starting on page 5 of the 4th Quarter 2013 Earnings News Release for further explanation and a reconciliation of the Bank��s non-GAAP measures to reported basis results. 4. Retail includes Canadian Personal & Commercial Banking, Wealth & Insurance, and U.S. Personal & Commercial Banking segments. See slide 7 for more detail. 5. Based on Q4/13 return on risk-weighted assets (RWA), calculated as adjusted net income available to common shareholders divided by average RWA. See slide 20 for details. See footnote 3 above for definition of adjusted results.

Page 6
5
Competing in Attractive Markets

10th largest economy

Nominal GDP of C$1.7 trillion

Population of 35 million
TD��s Canadian P&C3 Business Canadian Banking System Country Statistics

World��s largest economy

Nominal GDP of US$15.1 trillion

Population of 314 million
TD��s U.S. P&C3 Business U.S. Banking System Country Statistics Significant growth opportunities within TD��s footprint
1. World Economic Forum, Global Competitiveness Reports 2008-2013. 2. Includes securitizations. As per Canada Mortgage and Housing Corporation (CMHC). 3. ��P&C�� refers to Personal & Commercial Banking. 4. Based on SNL Bank and Thrifts as of 06/30/2011. 5. New mortgage origination volume in 2011 from Moody��s.

Soundest banking system in the world1

Market leadership position held by the ��Big 5�� Canadian Banks

Canadian chartered banks account for more than 75% of the residential mortgage market2

Mortgage lenders have recourse to both borrower and property in most provinces

Network of 1,179 branches and 2,845 ATMs

1 in 3 Canadians have an account with TD

Composite market share of 21%

Ranked #1 or #2 in market share for most retail products

Top tier dual credit card issuer

Over 9,000+ banks with market leadership position held by a few large banks

The 5 largest banks have assets > 50% of the U.S. economy

Mortgage lenders have limited recourse in most jurisdictions

Network of 1,317 stores and 1,889 ATMs

Operations in 5 of the top 10 metropolitan statistical areas and 7 of the 10 wealthiest states

> US$1.6T deposits market4

US$200B in mortgage originations5

Access to nearly 55 million customers within five miles of TD stores

Page 7
6
TD Bank Group in North America
TD is a Top 10 Bank in North America
1. See slide 4, footnote 3, for definition of adjusted results. 2. Effective Q1/13, amounts are calculated in accordance with the Basel III regulatory framework, and are presented based on the ��all-in�� methodology. Prior to Q1/13, amounts were calculated in accordance with the Basel II regulatory framework. See slide 19 for more detail. 3. See slide 4, footnote 2. 4. Canadian Peers – includes other 4 big banks (RY, BMO, BNS and CM) adjusted on a comparable basis to exclude identified non-underlying items. Based on Q4/13 results ended October 31, 2013. 5. North American Peers – includes Canadian Peers and U.S. Peers. U.S. Peers – includes Money Center Banks (C, BAC, JPM) and Top 2 Super-Regional Banks (WFC, USB). Adjusted on a comparable basis to exclude identified non-underlying items. For U.S. Peers, based on Q3/13 results ended September 30, 2013.
Q4 2013 (C$) Compared to: Canadian Peers4 North American Peers5
Total Assets $863B 1st 5th Total Deposits $544B 2nd 6th Market Cap (as of October 31, 2013) $88B 2nd 6th Adjusted Net Income1 (Trailing 4 Quarters) $7.2B 2nd 6th
Reported Net Income (Trailing 4 Quarters)
$6.7B n/a n/a Tier 1 Capital Ratio2 11.0% 5th 10th Avg. # of Full-Time Equivalent Staff 78,896 2nd 6th Moody��s Rating3 Aa1 n/a n/a

Page 8
7
Composition of Earnings
Retail-focused earnings mix
2013 Adjusted Retail Earnings2,5 = 91%
$2,158 $7,158
2001 2013
58%
42%
91%
13%
TD is a top 10 bank in North America1Increasing retail focusStrength of retail franchiseReliable and steady earnings mix
Adjusted Retail Earnings2,5 Wholesale Earnings
Highlights
9%
1. See slide 6. 2. See slide 4, footnote 3, for definition of adjusted results. 3. TD had a reported investment in TD Ameritrade of 42.22% as at October 31, 2013. 4. For financial reporting purposes, the ��Wealth & Insurance�� business segment is comprised of ��Wealth & Insurance�� and ��TD Ameritrade��, but have been separated here for illustrative purposes. 5. For the purpose of calculating contribution by each business segment, adjusted earnings from the Corporate segment are excluded. For a definition of retail earnings, see slide 4, footnote 4.
4
3,4
4

Page 9
8
Evolution of TD
Building Franchise Businesses
Wound down structured products business Exited non-franchise proprietary trading Recorded media/ telecom/energy loan losses Did not acquire large-scale investment dealer Exited non-franchise credit products
>>> Increasing Retail focus >>> Traditional Dealer >>> >>> Franchise Dealer
Strategic evolution to a lower-risk retail focused bank with a franchise dealer
• • • • • • • • • • • • •
Late ��90s 2000 2001 2002- 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
TD Bank and Canada Trust merge Acquired 51% of Banknorth Privatized TD Banknorth Acquired Commerce Bank Acquired Newcrest Capital TD Waterhouse USA/ Ameritrade transaction Commerce Bank integration Acquired Riverside & TSFG Acquired Chrysler Financial and MBNA credit card portfolio Acquired Target credit card portfolio & Epoch and announced agreement with Aimia

Page 10
9
Our Risk Appetite
∎ Integrated risk monitoring and reporting
❑ To senior management and Board of Directors
∎ Regular review, evaluation and approval of risk framework
❑ Structured Risk Appetite governance, from the Business to the Board ❑ Executive Committees and Risk Committee of the Board
Risk Management Framework

Fit our business strategy and can be understood and managed

Do not expose the enterprise to any significant single loss events; we don��t ��bet the bank�� on any single acquisition, business or product

Do not risk harming the TD brand
We take risks required to build our business, but only if those risks:
Proactive and disciplined risk management practices

Page 11
10
TD Bank Group – Key Messages
Top 10 Retail Focused North American Bank1
1
Proven Performance Strong Balance Sheet and Capital Position Focused on Growth Opportunities
4 2 3
1. See slide 6.

Page 12
11
Solid Growth and Returns Across Businesses
$3,813 $4,716 $5,228 $6,432 $7,075 $7,158 2008 2009 2010 2011 2012 2013
Adjusted Retail Earnings as % of Adjusted Earnings 98% 78% 83% 87% 88%
Wholesale Banking U.S. P&C Wealth & Insurance2 Canadian P&C2
1. The Bank transitioned from Canadian Generally Accepted Accounting Principles (GAAP) to International Reporting Standards (IFRS) effective November 1, 2011. As a result of this transition, balances presented in the graph above are based on Canadian GAAP for 2008 to 2010 and based on IFRS for 2011 to 2013. For details on the Bank��s transition from Canadian GAAP to IFRS please see Note 40 of the 2012 Financial Statements and Notes. See slide 4 footnote 3 for definition of adjusted results. See also pages 186-191 of the 2012 Annual Report for a reconciliation for 10 years ending FY12. For the purpose of calculating contribution by each business segment, adjusted earnings from the Corporate segment are excluded. For additional information, also see the Canadian P&C, Wealth & Insurance, U.S. P&C and Wholesale segment discussions in the Business Segment Analysis section of the 2007-2012 Annual Reports. 2. Effective July 4, 2011, executive responsibilities for TD Insurance were moved from Group Head Canadian P&C Segment to Group Head Wealth Segment. Results are updated for segment reporting purposes effective Q1 2012. These changes were applied retroactively to 2011 for comparative purposes. 3. As a result of the Bank��s transition to IFRS as described above, the calculation of the Compounded Annual Growth Rate (CAGR) includes balances based on Canadian GAAP from 2008 to 2010 and balances based on IFRS from 2011 to 2013.
Targeting 7-10% adjusted EPS growth over the medium term
Adjusted Earnings1,2
(C$MM)
91%

Page 13
12
22.3% 13.1% 15.2% 11.9% 23.8% 11.7% 15.9% 10.7% 27.5% 12.5% 6.9% 5.0%
Strong Total Shareholder Returns
1 Year 3 Years 5 Years 10 Years
NA Peers3 CDN Peers2
Delivering top tier long-term shareholder returns
1. Compounded Annual Growth Rates (CAGRs) for all periods ended October 31, 2013. Source: Bloomberg.
2. Canadian Peers – includes other 4 big banks (RY, BMO, BNS and CM).
3. North American Peers – includes Canadian Peers and U.S. Peers. U.S. Peers – includes Money Center Banks (C, BAC, JPM) and Top 3 Super-Regional Banks (WFC, PNC, USB). All figures are in local currency.
Total Shareholder Return
(CAGR1)

Page 14
13
Strong, Consistent Dividend History
1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
$3.24 $0.38
Q3/12: Increased Target Payout Range to 40%-50%3 Q4/13: Announced Stock Dividend with 2:1 Split Effect1 Dividend Yield: 3.5%2
Dividend has grown over time
1. Stock dividend of one common share per each issued and outstanding common share, which has the same effect as a two-for-one split of the common shares. For shareholders of record as at the close of business on January 23, 2014. 2. Dividend yield based on dividend per share for Q4/13 divided by average of high and low common share prices for the period. 3. In Q3/12, the Bank��s target payout range was changed to 40-50% of adjusted earnings (see slide 4, footnote 3 for the definition of adjusted results).
Dividends Per Share
(C$)

Page 15
14
Q4 2013 Highlights
1. See slide 4, footnote 3 for definition of adjusted results. 2. See slide 4, footnote 4 for definition of retail earnings. Reported retail results were $1,688 million, up 18% and 19% versus Q3/13 and Q4/12 respectively.
Key Themes Net Income $MM
(Adjusted, where applicable)
∎ Adjusted1 EPS growth of 4% YoY ∎ Retail earnings up 19%
❑ Strong loan and deposit volume growth
in Canada and the U.S.
∎ Wholesale earnings down 61%
❑ Lower security gains and elevated
expenses
∎ Strong capital ratio of 9.0% ∎ Announced stock dividend with
2-for-1 stock split effect in January 2014
Great quarter on strong Retail and good Wholesale results
Strong Retail results. Good fundamentals
Q4/13 QoQ YoY
Retail2 $ 1,752 21% 19% Wholesale 122 -17% -61% Corporate (53) n/a -83% Adjusted Net Income $ 1,821 15% 4% Reported Net Income 1,622 6% 2% Adjusted EPS (diluted) $ 1.90 15% 4% Reported EPS (diluted) 1.68 6% 1% Basel III CET1 Ratio 9.0%
$0.77 $0.77 $0.81 $0.81 $0.85
+$0.04 +$0.04 +$0.01 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13
Dividend per Common Share
= Announced dividend increase

Page 16
15
Q4 2013 Operating Highlights
Canadian P&C
∎ Adjusted earnings1 up 14% YoY ∎ Lending volumes strong in business banking, solid but slowing
in personal
∎ Adjusted expenses flat YoY ∎ Strong credit performance: personal PCL down 23% YoY
Good volume growth, expense control and strong credit performance
Wealth & Insurance
∎ Record Wealth earnings up 26% YoY due to higher fee-based
revenue, improved trading volumes and the addition of Epoch.
∎ Improved Insurance earnings with good premium growth YoY ∎ Contribution from TD Ameritrade was $77MM (up 51% YoY)
Strong results for Wealth; improved quarter for Insurance
U.S. P&C
∎ Adjusted earnings1 up 13% YoY ∎ Strong loan growth and deposit growth ∎ Credit quality improved: improved commercial asset quality ∎ Adjusted expenses up 29% YoY primarily due to Target and
investments in growth initiatives
A strong quarter in a challenging environment
Wholesale
∎ Earnings down 61% YoY ∎ Revenue impacted by lower security gains in investment
portfolio and higher non-interest expenses
∎ Return on common equity of 12.0% ∎ Maintained top-three dealer status in Canada2
Strong fundamentals
Key Themes by Segment
Delivering solid results in a challenging environment
1. Adjusted results are defined on slide 4, footnote 3. Reported earnings in Q4 2013 for Canadian P&C was C$914MM and for US P&C was US$355MM. 2. See slide 30 footnote 3.

Page 17
16
Q4 2013 Credit Highlights
1. PCL Ratio – Provision for Credit Losses on a quarterly annualized basis/Average Net Loans & Acceptances; Total PCL excludes the impact of acquired credit-impaired loans, debt securities classified as loans and items of note 2. GIL Ratio – Gross Impaired Loans/Gross Loans & Acceptances (both are spot). Excludes the impact of acquired credit impaired loans and debt securities classified as loans.
Highlights GIL Ratio (bps)2 PCL Ratio (bps)1
Great quarter on strong Retail and good Wholesale results
Credit fundamentals remain strong
∎ Strong credit performance
❑ Loss rates for Canadian P&C remain
historically low
❑ Continued improvement in the U.S.
Personal and Commercial portfolios
∎ Performance expected to
continue through 2014
∎ Release of $40MM of Alberta
flood related reserves

Page 18
17
TD Bank Group – Key Messages
Top 10 Retail Focused North American Bank1
1
Proven Performance Strong Balance Sheet and Capital Position Focused on Growth Opportunities
4 2 3
1. See slide 6.

Page 19
18
Attractive Balance Sheet Composition1
Funding Mix2 Wholesale Term Debt
1. As of October 31, 2013 2. Excludes certain liabilities which do not create funding which are: acceptances, trading derivatives, other liabilities, wholesale mortgage aggregation business, non-controlling interest and certain equity capital: common equity and other capital
instruments.
3. Bank, Business & Government Deposits less covered bonds and senior MTN notes. 4. Obligations related to securities sold short and sold under repurchase agreements. 5. Based on first par redemption date. Any assumption on the timing of a redemption is subject to management��s view at the time of redemption as well as applicable regulatory and corporate governance approvals.
P&C Deposits 71%
Senior Unsecured MTN 26% Covered Bonds 15% Residential Mortgages 58% Senior Unsecured MTN 32% Covered Bonds 14% Residential Mortgages 52%
Term Asset Backed Securities 2%
Assets Securitized 54%
Sub-Debt5 1%
Personal Non- Term Deposits 37% Other Deposits3 26%
Personal Term Deposits 8% Short Term Liabilities4 11%
Wholesale Term Debt 10% Trading Deposits 7%
Personal and commercial deposits are primary sources of funds

Page 20
19
Strong Capital Position
Basel III Common Equity Tier 11 Highlights
246 274 282 284 286 Q4/12 Q1/13 Q2/13 Q3/13 Q4/13
Risk-Weighted Assets1
(C$B)
∎ Basel III Common Equity Tier 1
ratio 9.0% as of October 31, 2013
∎ Announced stock dividend with
2-for-1 stock split effect in January
∎ During fiscal 2013 we repurchased
9 million shares under buyback program
∎ Dividends paid up 12% in 2013
1. Effective Q1 2013, amounts are calculated in accordance with the Basel III regulatory framework, excluding Credit Valuation Adjustment Capital (CVAc) in accordance with OSFI guidance and are presented based on the ��all-in�� methodology. Basel III Common Equity Tier 1 ratios reported in 2012 are pro-forma estimates reported in the Q4 2012, Q3 2012, and Q2 2012 MD&A (available at td.com).
Remain well-positioned for evolving regulatory and capital environment

Page 21
20
Strong Focus on Risk-Adjusted Return
1. As a result of the transition to IFRS as described on slide 11, footnote 1, the calculation of risk-weighted assets is based on IFRS. Return on Risk-Weighted Assets (RWA) is adjusted net income available to common shareholders divided by average RWA. Adjusted results are defined on slide 4, footnote 3. Effective Q1/13, amounts are calculated in accordance with the Basel III regulatory framework, and are presented based on the ��all-in�� methodology. 2. TD based on Q4/13 adjusted results as defined on slide 4, footnote 3. 3. Canadian Peers – includes other big 4 banks (RY, BMO, BNS, and CM). Based on Q4/13 results ended October 31, 2013. 4. U.S. Peers – includes Money Center Banks (C, BAC, JPM) and Top 2 Super-Regional Banks (WFC, USB). Based on Q3/13 results ending September 30, 2013. 5. Ratings on long term debt (deposits) of The Toronto-Dominion Bank, as at October 31, 2013. Credit ratings are not recommendations to purchase, sell, or hold a financial obligation inasmuch as they do not comment on market price or suitability for a particular investor. Ratings are subject to revision or withdrawal at any time by the rating organization.
Highly rated franchise
Citations

Global Finance magazine ranked TD as the Safest Bank in North America and one of the World��s 50 Safest Banks in 2013

Bloomberg Markets magazine ranked TD as one of the world��s strongest banks in 2013

Euromoney magazine named TD Best Bank in Canada in 2013
Adjusted Return on Risk-Weighted Assets1
1.57% 2.33% 2.43% TD Canadian Peers U.S. Peers
2
Moody's S&P Fitch DBRS Aa1 AA- AA- AA
Ratings5
3 4

Page 22
21
Gross Lending Portfolio
Canadian portfolio – strong credit quality U.S. portfolio – continued positive trends
Highlights
C$B (unless otherwise noted) Q4/13
Canadian Personal & Commercial Portfolio $ 314.6 Personal $ 267.6 Residential Mortgages 164.7 Home Equity Lines of Credit (HELOC) 61.3 Indirect Auto 14.7 Unsecured Lines of Credit 8.4 Credit Cards 15.3 Other Personal 3.2 Commercial Banking (including Small Business Banking) $ 47.0 U.S. Personal & Commercial Portfolio (all amounts in US$) US$ 103.4 Personal US$ 53.0 Residential Mortgages 20.0 Home Equity Lines of Credit (HELOC)1 10.2 Indirect Auto 15.7 Credit Cards 6.6 Other Personal 0.5 Commercial Banking US$ 50.4 Non-residential Real Estate 11.5 Residential Real Estate 3.3 Commercial & Industrial (C&I) 35.6 FX on U.S. Personal & Commercial Portfolio $ 4.3 U.S. Personal & Commercial Portfolio (C$) $ 107.7 Acquired Credit-Impaired Loans2 $ 2.5 Wholesale Portfolio3 $ 21.3 Other4 $ 4.3 Total $ 450.4

Real estate secured lending volume up 4% YoY
❑ $226 billion portfolio (66% insured) ❑ Average current LTV of 47% ∎
Auto lending volume increased 3% YoY

All other personal lending volumes up 1% YoY

Business loans and acceptances up 12% YoY

Average personal loans5 increased 14% YoY

Average business loans increased 8% YoY
Balances
Credit quality remains strong
1. U.S. HELOC includes Home Equity Lines of Credit and Home Equity Loans 2. Acquired Credit-Impaired Loans include the acquired credit-impaired loans from The South Financial Group, Chrysler Financial, MBNA, Target, and acquired loans from the FDIC-assisted acquisition 3. Wholesale portfolio includes corporate lending and other Wholesale gross loans and acceptances 4. Other includes Wealth Management and Corporate Segment 5. Excluding the impact of the Target U.S. credit card portfolio acquisition.
Note: Some amounts may not total due to rounding. Excludes Debt securities classified as loans.

Page 23
22
TD Bank Group – Key Messages
Top 10 Retail Focused North American Bank1
1
Proven Performance Strong Balance Sheet and Capital Position Focused on Growth Opportunities
4 2 3
1. See slide 6.

Page 24
23
Adjusted Net Income1
(C$MM)
Canadian Personal & Commercial Banking
$2,424 $2,472 $3,095 $3,051 $3,408 $3,766 2008 2009 2010 2011 2012 2013
Q4 2013 Highlights
Total Deposits2 C$228B Customers 14MM Total Loans2 C$314B Branches 1,179 Adjusted Earnings3 C$3.8B ATMs 2,845 Employees4 28,418
∎ Continue to win in retail banking ∎ Higher growth opportunities

Business banking

Credit cards

Auto lending
∎ Service and convenience model ∎ Grow revenue faster than expenses ∎ Leverage TD partners to cross-sell
Where we compete How we win
Robust retail banking foundation in Canada with proven performance
1. See slide 4, footnotes 3 for definition of adjusted results. See slide 11, footnotes 1 and 2 for explanation of net income presented under Canadian GAAP and IFRS, and information on segment transfers. Reported earnings for 2012 was C$3.3B and
for 2013 was C$3.7B.
2. Total Deposits based on total of average personal and business deposits during Q4/13. Total Loans based on total of average personal and business loans during Q4/13. 3. For trailing four quarters ending Q4/13 (i.e., full fiscal 2013). Reported earnings for the same period was C$3.7B. 4. Average number of full-time equivalent staff during Q4/13.
Consistent Strategy

Page 25
24
Canadian Personal & Commercial Banking
Leaders in customer service and convenience

TD has opened approximately 1 out of every 3 new branches1

On average 45% longer branch hours than peers2

Sunday banking in more than 425 branches
Integrated product offerings

#1 or #2 market share in most retail products3

Client referrals and product offerings from across TD family

Primary issuer for Aeroplan Visa credit cards beginning in January 2014
Relentless focus on operational excellence

Best-in-class operational efficiency

Customer experience embedded in process and technology

Disciplined approach, grow revenues faster than expenses
Consistently reinvesting for the long-term

Optimize footprint by balancing branch openings and closings

Focus on productivity gains through disciplined expense management

Continue to build on our momentum of higher growth businesses:
❑ Business banking – Only bank to increase market share from 2008 to 2011 ❑ Credit cards – Leading market share in Canada and untapped U.S. potential ❑ Indirect auto lending – North American scale ❑ Under-represented regions – Quebec
8th
JD Power Award win in a row4
9th
IPSOS Best Banking win in a row5
Target 7-10% earnings growth over the medium term
1. Branches opened by TD vs. Canadian peers from Q1/08 to Q4/13. Canadian Peers – other 4 big banks (RY, BNS, BMO and CM). 2. As at October 31, 2013. Canadian Peers – other 4 big banks (RY, BNS, BMO and CM). 3. Source: Canadian Bankers Association, as at May 2013. 4. TD Canada Trust received the highest numerical score among the big 5 retail banks in the proprietary J.D. Power and Associates 2006-2013 Canadian Retail Banking Customer Satisfaction StudiesSM. 2013 study based on more than 21,000 total
responses. Proprietary study results are based on experiences and perceptions of consumers surveyed between May 7 and May 24, 2013. Your experiences may vary. Visit jdpower.com
5. Rated #1 among Canada��s five major banks for ��Overall quality of customer service�� by independent market research firm Ipsos (formerly Synovate) from 2005 – 2013.

Page 26
25
Wealth & Insurance
Q4 2013 Highlights
Wealth Assets Under Administration C$293B Wealth Assets Under Management C$257B Insurance Gross Originated Premiums2 C$3.8B Earnings2 C$1.2B Employees3 11,451
Consistent Strategy
Wealth

Mass affluent and high net worth TD clients in Canada and U.S.

Self-directed investors in selected markets

Institutional asset management in Canada Insurance

TD customers and affinity markets

Simple personal lines products (Home & Auto, Life & Health, Creditor and Travel)

Legendary TD client experience

Leverage TD brand and client base

Direct distribution

Conservative risk appetite
Net Income1
(C$MM)
Where we compete How we win
$480 $345 $447 $566 $601 $691 $289 $252 $194 $207 $209 $246 $541 $557 $216
$769 $597 $641 $1,314 $1,367 $1,153 2008 2009 2010 2011 2012 2013 Wealth TD Ameritrade Insurance
1. See slide 11, footnotes 1 and 2 for explanation of net income presented under Canadian GAAP and IFRS and information on segment transfers. 2. For trailing four quarters ending Q4/13 (i.e., full fiscal 2013). 3. Average number of full-time equivalent staff during Q4/13.
Strong franchise – poised for growth

Page 27
26
Wealth & Insurance
Leading market positions

#1 Online brokerage in Canada for assets and trades1

#2 Execution-only brokerage in the U.K.2

#1 Institutional Asset Management3

#1 Direct writer of home & auto insurance in Canada4

#1 Affinity home and auto insurance4
Leverage TD brand and client base

Strong referral model with leading retail bank

Competing on client experience, TD brand and direct distribution

Focusing on unique client segments to service their specific financial needs

Closed on acquisition of Epoch Investment Partners in March 2013, which expands overall product capabilities for Wealth
Strategic relationship with TD Ameritrade

#1 in online trades per day in the U.S.5

Best options and mobile trading platform6

Strong momentum with asset gathering strategy

Opportunities for mutually beneficial customer referrals and growth
1. Market share is based on Investor Economics, as of December 2012. 2. Source: Compeer based on daily average retail trades as at December 2012. 3. Source: Benefits Canada ��2013 Top 40 Money Managers Report�� released November 2013. 4. Source: TD Insurance Market Watch Report. 5. Internally estimated daily average revenue client trades (DARTS) based on last twelve months publicly available reports for E*Trade Financial and Charles Schwab. 6. Source: Investor��s Business Daily survey released January 25, 2013.
Expect to achieve good earnings growth over the medium term

Page 28
27
U.S. Personal & Commercial Banking
$806 $909 $1,042 $1,270 $1,422 $1,627 2008 2009 2010 2011 2012 2013
Consistent Strategy
1. Metropolitan Statistical Area 2. See slide 4, footnote 3 for definition of adjusted results. Also see slide 11, footnotes 1 and 2 for explanation of net income presented under Canadian GAAP and IFRS. Reported earnings in 2007 was C$320MM, 2008 was C$722MM, 2009 was
C$633MM, 2010 was C$973MM, 2011 was C$1,188MM, 2012 was C$1,128MM and 2013 was C$1,527MM.
3. Total Deposits based on total of average personal deposits, business deposits and TD Ameritrade Insured Deposit Accounts (IDAs) during Q4/13. Total Loans based on total of average personal and business loans during Q4/13. 4. For trailing four quarters ending Q4/13 (i.e., full fiscal 2013). See slide 4, footnote 3, for definition of adjusted results. Reported earnings for the same period was C$1,527MM. 5. Average number of full-time equivalent staff during Q4/13.
Adjusted Net Income2
($MM)
∎ Retail and commercial banking along the
Eastern Seaboard
∎ Operate in 5 of the top 10 MSAs1 and 7 of
the 10 wealthiest states
∎ Focused on higher growth markets and
products
∎ Unique value proposition ∎ Regional banking model ∎ De novo growth ∎ Accelerate cross-sell ∎ Drive efficiencies
US$ C$
Where we compete How we win
$794 $1,008 $781 $1,289 $1,416
Significant scale and enviable footprint
Q4 2013 Highlights
Total Deposits3 C$198B Customers 8MM Total Loans3 C$109B Stores 1,317 Adjusted Earnings4 C$1.6B ATMs 1,889 Employees5 24,797
$1,595

Page 29
28
U.S. Personal & Commercial Banking
Lead in customer service and convenience

Committed to providing legendary service and unparalleled convenience

Open longer than the competition, including Sunday banking in most markets

24/7/365 live customer contact center support
Significant scale and enviable footprint

Operating retail stores in 15 states and the District of Columbia

Top 10 U.S. bank with 8MM+ customers

Closed acquisition of Target U.S. Credit Card portfolio in March 2013
Disciplined credit culture

In-footprint lending

Conservative product suite

Distribution through proprietary channels, not brokers
Continued organic growth and de novo expansion

Targeting top 5 market share in our major markets, including #3 deposit share in New York

Opened 24 new stores in fiscal 2013 with a focus on higher growth markets (e.g., New York City, South Florida and Boston)

Opened 100th store in New York City in 2013, with 108 stores operating at year-end

Cross-sell initiatives progressing as franchise matures
Expect modest earnings growth given interest rate challenges
From MONEY® Magazine, October 2012 © 2012 Time Inc. MONEY is a registered trademark of Time Inc. and is used under license. MONEY and Time Inc. are not affiliated with, and do not endorse products or services of TD Bank, N.A.
Named ��Best Big Bank�� in Money®��s ��Best Banks 2013�� Issue Ranked Highest in J.D. Power Customer Satisfaction Study
▪Small Business Customer
Satisfaction in the Northeast (Oct 2013)
▪Customer Satisfaction in
Florida (Apr 2013)

Page 30
29
Wholesale Banking
$65 $1,137 $987 $815 $880 $648 2008 2009 2010 2011 2012 2013
1. See slide 4, footnote 3 for definition of adjusted results. Also see slide 11, footnotes 1 and 2 for definition of adjusted results and explanation of net income presented under Canadian GAAP and IFRS. Reported earnings in 2010 was C$866MM. 2. Effective Q1/13, amounts are calculated in accordance with the Basel III regulatory framework, and are presented based on the ��all-in�� methodology. Prior to Q1/13, amounts were calculated in accordance with the Basel II regulatory framework. 3. For trailing four quarters ending Q4/13 (i.e., full fiscal 2013). 4. Average number of full-time equivalent staff during Q4/13.
Consistent Strategy
A client-centric wholesale franchise
Where we compete How we win
Q4 2013 Highlights
Risk-Weighted Assets2 C$47B Earnings3 C$648MM Employees4 3,535
Adjusted Net Income1
(C$MM)
Canada
∎ Be the top-ranked integrated investment
dealer
∎ Fully aligned with TD Bank Group partners
U.S.
∎ Extend the goals of the Canadian franchise
into the U.S.
∎ Build U.S. franchise in partnership with
TD Bank, America��s Most Convenient Bank Outside North America
∎ Be a niche player in franchise/client-driven
businesses (energy and mining, super- sovereign agencies, fixed income, foreign exchange)
∎ Franchise businesses ∎ Alignment to TD ∎ Disciplined risk approach

Page 31
30
Wholesale Banking
Focus on client-driven franchise businesses

Diversified business mix with a North American focus

Presence in key global financial centres

Evolved the business model by strategically repositioning the dealer to concentrate on core-client driven activities (e.g.: exited global structured products before the financial crisis)
A North American dealer aligned with our TD partners

Focus on integrating the strength of TD brand and partnering with our retail franchises
Solid returns without going out the risk curve

Disciplined and proactive risk management

Delivered strong business results while repositioning the dealer
Well positioned for growth

Build on position as top 3 dealer in Canada3

Grow U.S. fixed income, foreign exchange and commodities & precious metal businesses

Extend competitive advantages outside North America
1. For Corporate Debt U/W deals in Canada from January 1, 2013 through September 30, 2013. Source: Bloomberg 2. Source: IRESS; Canadian equity block trades by value on all Canadian exchanges. 3. Ranked # 1 Equity Block Trading (Source: IRESS), #1 Corporate Debt Underwriting (Source: Bloomberg), #3 Government Debt Underwriting, #3 in Canadian Syndicated Loans (Source: Bloomberg), #3 Completed M&A (Source: Thomson
Financial 2013) and #3 Equity Underwriting (Source: Thomson Financial 2013).
Targeting 15-20% ROE with acceptable risk
#1 Canadian
Corporate Underwriting1 Twelve years as
Top Equity Block Trader
in Canada2

Page 32
31
TD Model Has Proven Its Resilience
Targeting 7-10% adjusted EPS growth over the medium term
∎ Slowing loan growth in
Canada
∎ Low interest rate
environment
∎ Demanding regulatory
environment
Headwinds
Continue to invest while driving efficiencies Leverage TD brand across all segments Lead with service and convenience Focus on organic growth
Simple Strategy Consistent Focus Superior Execution

Page 33
32
Commitment to Corporate & Social Responsibility
For further information about Corporate Responsibility, please visit http://www.td.com/corporateresponsibility/. 1. According to AON Hewitt��s ��50 Best Employers in Canada�� for 2008 - 2013.
Supporting customers and employees
Corporate Leadership Extraordinary Workplace that Embraces Diversity Corporate Responsibility
∎ One of Canada��s ��Most Responsible
Companies�� (Macleans magazine and Sustainalytics, 2011, 2012, 2013)
∎ One of the ��Best 50 Corporate Citizens in
Canada�� (Corporate Knights, 2011, 2012, 2013)
∎ Best Bank in North America by Euromoney
three years running
∎ Greenwich Excellence Awards: National Award
in Middle Market Banking for Financial Stability, Northeast Regional Award in Treasury Management for Overall Satisfaction
∎ TD Bank ranked #1 by Brand Finance Canada
as Canada��s most valuable brand (2012)
∎ Recognized by sustainability indices
❑ Dow Jones Sustainability Index North America ❑ Ethibel Sustainability Index Global ❑ Jantzi Social Index ❑ FTSE4Good Index ❑ Nasdaq OMX CRD Global Sustainability Index
∎ Transparency and disclosure in reporting
demonstrated by a B+ level GRI rating
∎ One of the 50 Best Employers in Canada1 ∎ Named one of The Best Places to Work for LGBT
Equality in the U.S. by Human Rights Campaign for the third consecutive year
∎ Recognized as one of the Top 125 training
organizations in the world by Training Magazine for the fourth consecutive year
∎ Corporate Knights�� Diversity in the Boardroom Report
ranked TD #7 in its Top 10 for Female Representation on Canadian Boards (2012)
∎ Diversity Leadership Council led by senior executives
embeds diversity into business plans

Page 34
33
Environmental Leadership & Community Engagement
For further information about Corporate Responsibility, please visit http://www.td.com/corporateresponsibility/.
Taking responsibility to be The Better Bank
Environmental Leader Community Involvement
∎ One of the world��s top 500 corporate environmental leaders
(Newsweek 2012)
∎ Only Canadian bank recognized in the 2013 Global
Performance Leadership Index (annual ranking by CDP)
∎ One of Canada��s top 5 organizations in terms of our approach
to greenhouse gas emissions and disclosure (2013 CDP Canada 200 Leaders Index)
∎ First North American-based bank to become carbon neutral
(as of Feb.18th, 2010)
∎ One of Canada��s Greenest Employers (Mediacorp Canada
Inc., 2010, 2011, 2012, 2013)
∎ A leader in renewables financing ∎ TD Bank Named EPA Green Partner of the Year in 2010 for
use of green energy and received a Green Power Leadership Award (2012)
∎ TD Bank��s Net Zero store received:
❑ The International Council of Shopping Center��s US Design
and Development Award for Sustainable Design
❑ The Community Appearance Award for Outstanding
Achievement in Urban Design (City of Ft. Lauderdale) in 2012 for its LEED design
❑ The Chain Store Age Retail Store of the Year Award for
Sustainable Design
∎ TD Friends of the Environment Foundation celebrates 23 years
❑ Over 147,000 trees have been planted through TD Tree Days,
TD��s flagship volunteer program, in Canada, the US, the UK and Luxembourg.
❑ Expect to plant another 50,000 trees to the Canadian
landscape in 2014.
❑ Working towards launching TD Green Streets in the UK
∎ Framework of environmental/sustainability policies:
❑ TD Asset Management is a signatory to United Nations
Principles for Responsible Investment
❑ Sustainable Investment Policy applicable to all asset
management instruments
❑ Launched TD Forests in 2012, which works to grow and
protect forest areas and includes a goal to reduce TD's paper usage by 20% by 2015 (vs. 2010)
❑ Responsible lending through Environmental and Social Risk
Policy and Equator Principles

Donated more than C$74 million in 2013 to not-for-profit groups in Canada, the U.S., and the U.K.

Awarded Outstanding Community Reinvestment Act rating by Office of the Comptroller (OCC) in June 2012

TD Bank WOW!Zone (U.S.) has taught more than one million students (kids and their parents) about budgeting, saving and good financial habits

In 2013, more than 1.4 million kids benefitted from a children��s literacy program supported by TD

Page 35
34
Investor Relations Contacts
Phone: 416-308-9030 or 1-866-486-4826 Email: tdir@td.com Website: www.td.com/investor
Grand Prix for Best Overall Investor Relations: Large Cap Best Investor Relations by Sector: Financial Services Best Investor Relations by a CEO: Large Cap Best Investor Relations by a CFO: Large Cap Best Investment Community Meetings Best Financial Reporting Best Corporate Governance Best Use of Technology

Page 36
TD Bank Group Investor Presentation
Q4 2013
Search more related documents:TD Bank Group Investor Presentation

Set Home | Add to Favorites

All Rights Reserved Powered by Free Document Search and Download

Copyright © 2011
This site does not host pdf,doc,ppt,xls,rtf,txt files all document are the property of their respective owners. complaint#nuokui.com
TOP