This quarterly earnings news release should be read in conjunction with the Bank's unaudited fourth quarter 2015 consolidated financial results for the year ended October 31, 2015, included in this Earnings News Release and the audited 2015 Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which is available on TD's website at http://www.td.com/investor/. This analysis is dated December 2, 2015. Unless otherwise indicated, all amounts are expressed in Canadian dollars, and have been primarily derived from the Bank's Annual or Interim Consolidated Financial Statements prepared in accordance with IFRS. Certain comparative amounts have been reclassified to conform to the presentation adopted in the current period. Additional information relating to the Bank is available on the TD's website at http://www.td.com, as well as on SEDAR at http://www.sedar.com and on the U.S. Securities and Exchange Commission's SEC website at http://www.sec.gov (EDGAR filers section). The Bank implemented new and amended standards under IFRS, which required retrospective application, effective the first quarter of fiscal 2015 (2015 IFRS Standards and Amendments). As a result, certain comparative amounts have been restated where applicable. For more information refer to Note 4 of the 2015 Consolidated Financial Statements. The 2015 IFRS Standards and Amendments were not incorporated into the regulatory capital disclosures presented prior to the first quarter of 2015. Reported results conform to generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted measures are non-GAAP measures. Refer to the "How the Bank Reports" section of the 2015 Management's Discussion and Analysis (MD&A) for an explanation of reported and adjusted results. |
FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth quarter last year:
- Reported diluted earnings per share were $0.96, compared with $0.91.
- Adjusted diluted earnings per share were $1.14, compared with $0.98.
- Reported net income was $1,839 million, compared with $1,746 million.
- Adjusted net income was $2,177 million, compared with $1,862 million.
FULL YEAR FINANCIAL HIGHLIGHTS, compared with last year:
- Reported diluted earnings per share were $4.21, compared with $4.14.
- Adjusted diluted earnings per share were $4.61, compared with $4.27.
- Reported net income was $8,024 million, compared with $7,883 million.
- Adjusted net income was $8,754 million, compared with $8,127 million.
FOURTH QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The fourth quarter reported earnings figures included the following items of note:
- Amortization of intangibles of $65 million after tax (3 cents per share), compared with $62 million after tax (4 cents per share) in the fourth quarter last year.
- Restructuring charges of $243 million after tax (13 cents per share).
- A charge of $51 million after tax (3 cents per share) related to the acquisition of Nordstrom's U.S. credit card portfolio.
- A gain of $21 million after tax (1 cent per share) due to the change in fair value of derivatives hedging the reclassified available-for-sale securities portfolio.
TORONTO, Dec. 3, 2015 /CNW/ - TD Bank Group ("TD" or the "Bank") today announced its financial results for the fourth quarter ending October 31, 2015. Fourth quarter adjusted earnings of $2.2 billion were up 17% over the same quarter last year, with strong performances from all business segments
"We are very pleased to finish the year with strong total adjusted earnings of $8.8 billion, an increase of 8% over last year," said Bharat Masrani, Group President and Chief Executive Officer. "Results for the year reflect good earnings performance from all businesses, driven by good organic growth, strong credit quality, favourable currency translation and positive operating leverage."
Further to the cost reduction and expense management initiatives taken throughout 2015, the Bank recorded restructuring charges of $349 million ($243 million after tax) on a net basis in the fourth quarter.
Canadian Retail
Canadian Retail delivered reported and adjusted net income of $1.5
billion in the fourth quarter, an increase of 15% on a reported basis,
and an increase of 10% on an adjusted basis over the same quarter last
year. Higher earnings were driven by good loan, deposit and wealth
asset volume growth, continued strong credit performance, higher
insurance earnings, and good expense management.
"We are very pleased with our strong fourth quarter in our Canadian Retail business," said Tim Hockey, Group Head, Canadian Banking and Wealth Management. "We maintained our leadership position in key products by capturing growth opportunities and driving operational excellence. In 2016, we will continue to win by providing legendary service and convenience to our customers: where, when, and how they want to bank with us."
U.S. Retail
U.S. Retail generated reported net income of US$452 million and adjusted
net income of US$491 million in the fourth quarter. Excluding the
Bank's investment in TD Ameritrade, the segment generated adjusted net
income of US$407 million, an increase of 6% compared with the fourth
quarter last year. Earnings were driven by strong organic volume
growth, partially offset by higher provisions for credit losses.
TD Ameritrade contributed US$84 million in earnings to the segment, an increase of 9% compared with the fourth quarter last year.
"Our fourth quarter results marked a good finish to a strong year where we continued to take market share," said Mike Pedersen, Group Head, U.S. Banking. "In 2016, we'll continue to focus on acquiring more customers, deepening customer relationships, and improving productivity."
Wholesale Banking
Wholesale Banking net income for the quarter was $196 million, an
increase of 23% compared with the fourth quarter last year, driven by
higher trading revenue and corporate lending growth.
"Our Wholesale Banking business delivered a solid finish to the year," said Bob Dorrance, Group Head, Wholesale Banking. "During the fourth quarter, TD Securities delivered good trading results despite global uncertainty and lower client activity, and grew our corporate lending portfolio. In 2016, we will remain focused on attracting new clients, expanding our franchise both in Canada and the U.S., and managing our risks, capital, and productivity."
Capital
TD's Common Equity Tier 1 Capital ratio on a Basel III fully phased-in
basis was 9.9%, compared with 10.1% last quarter, reflecting business
growth, including the acquisition of the Nordstrom credit card
portfolio.
Conclusion
"Our 2015 results truly demonstrate the strength and resilience of TD's
earnings power. This year we took decisive steps to optimize our
operations and adapt to a slower growth environment, enabling us to
reinvest in our businesses, and positioning us well for growth," said
Masrani. "We will continue to grow, take market share and relentlessly
focus on delivering legendary customer experiences across all of our
businesses and channels. I would like to thank our incredible employees
for their continuing outstanding dedication and contributions to
building the even Better Bank."
The foregoing contains forward-looking statements. Please refer to the "Caution Regarding Forward-Looking Statements" on page 3.
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 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, including in the Management's Discussion and Analysis ("2015 MD&A") under the heading "Economic Summary and Outlook", for each business segment under headings "Business Outlook and Focus for 2016", and in other statements regarding the Bank's objectives and priorities for 2016 and beyond and strategies to achieve them, the regulatory environment in which the Bank operates, 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, individually or in the aggregate, such differences include: credit, market (including equity, commodity, foreign exchange, and interest rate), liquidity, operational (including technology and infrastructure), 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; the ability of the Bank to execute on key priorities, including to successfully complete acquisitions, business retention, and strategic plans and to attract, develop and retain key executives; 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 or other criminal behaviour to which the Bank is exposed; the failure of third parties to comply with their obligations to the Bank or its affiliates, including relating to the care and control of information; the impact of new and changes to, or application of, current laws and regulations, including without limitation tax laws, risk-based capital guidelines and liquidity regulatory guidance; the overall difficult litigation environment, including in the U.S.; increased competition, including through internet and mobile banking and non-traditional competitors; changes to the Bank's credit ratings; changes in currency and interest rates; increased funding costs and market volatility due to market illiquidity and competition for funding; critical accounting estimates and changes to accounting standards, policies, and methods used by the Bank; existing and potential international debt crises; and the occurrence of natural and unnatural catastrophic events and claims resulting from such events. The Bank cautions 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 refer to the "Risk Factors and Management" section of the 2015 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any transactions or events 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 the Bank cautions 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 2015 MD&A under the headings "Economic Summary and Outlook", and for each business segment, "Business Outlook and Focus for 2016", 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. |
This document was reviewed by the Bank's Audit Committee and was approved by the Bank's Board of Directors, on the Audit Committee's recommendation, prior to its release.
TABLE 1: FINANCIAL HIGHLIGHTS1 | ||||||||||||||||
(millions of Canadian dollars, except as noted) | For the three months ended | For the twelve months ended | ||||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | ||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Results of operations | ||||||||||||||||
Total revenue | $ | 8,047 | $ | 8,006 | $ | 7,452 | $ | 31,426 | $ | 29,961 | ||||||
Provision for credit losses | 509 | 437 | 371 | 1,683 | 1,557 | |||||||||||
Insurance claims and related expenses | 637 | 600 | 720 | 2,500 | 2,833 | |||||||||||
Non-interest expenses | 4,911 | 4,292 | 4,331 | 18,073 | 16,496 | |||||||||||
Net income - reported | 1,839 | 2,266 | 1,746 | 8,024 | 7,883 | |||||||||||
Net income - adjusted2 | 2,177 | 2,285 | 1,862 | 8,754 | 8,127 | |||||||||||
Return on common equity - reported | 11.4 | % | 14.9 | % | 13.1 | % | 13.4 | % | 15.4 | % | ||||||
Return on common equity - adjusted3 | 13.5 | 15.0 | 14.0 | 14.7 | 15.9 | |||||||||||
Financial position | ||||||||||||||||
Total assets | $ | 1,104,373 | $ | 1,099,202 | $ | 960,511 | $ | 1,104,373 | $ | 960,511 | ||||||
Total equity | 67,028 | 65,965 | 56,231 | 67,028 | 56,231 | |||||||||||
Total Common Equity Tier 1 Capital risk-weighted assets4,5 | 382,360 | 369,495 | 328,393 | 382,360 | 328,393 | |||||||||||
Financial ratios | ||||||||||||||||
Efficiency ratio - reported | 61.0 | % | 53.6 | % | 58.1 | % | 57.5 | % | 55.1 | % | ||||||
Efficiency ratio - adjusted2 | 55.3 | 53.4 | 56.2 | 54.3 | 53.4 | |||||||||||
Common Equity Tier 1 Capital ratio4 | 9.9 | 10.1 | 9.4 | 9.9 | 9.4 | |||||||||||
Tier 1 Capital ratio4 | 11.3 | 11.5 | 10.9 | 11.3 | 10.9 | |||||||||||
Provision for credit losses as a % of net average loans and | ||||||||||||||||
acceptances6 | 0.40 | 0.33 | 0.33 | 0.34 | 0.34 | |||||||||||
Common share information - reported (dollars) | ||||||||||||||||
Per share earnings | ||||||||||||||||
Basic | $ | 0.96 | $ | 1.20 | $ | 0.92 | $ | 4.22 | $ | 4.15 | ||||||
Diluted | 0.96 | 1.19 | 0.91 | 4.21 | 4.14 | |||||||||||
Dividends per share | 0.51 | 0.51 | 0.47 | 2.00 | 1.84 | |||||||||||
Book value per share | 33.81 | 33.25 | 28.45 | 33.81 | 28.45 | |||||||||||
Closing share price | 53.68 | 52.77 | 55.47 | 53.68 | 55.47 | |||||||||||
Shares outstanding (millions) | ||||||||||||||||
Average basic | 1,853.1 | 1,851.1 | 1,842.0 | 1,849.2 | 1,839.1 | |||||||||||
Average diluted | 1,857.2 | 1,855.7 | 1,848.2 | 1,854.1 | 1,845.3 | |||||||||||
End of period | 1,855.1 | 1,853.6 | 1,844.6 | 1,855.1 | 1,844.6 | |||||||||||
Market capitalization (billions of Canadian dollars) | $ | 99.6 | $ | 97.8 | $ | 102.3 | $ | 99.6 | $ | 102.3 | ||||||
Dividend yield | 3.9 | % | 3.7 | % | 3.4 | % | 3.8 | % | 3.5 | % | ||||||
Dividend payout ratio | 53.0 | 42.7 | 51.3 | 47.4 | 44.3 | |||||||||||
Price-earnings ratio | 12.8 | 12.7 | 13.4 | 12.8 | 13.4 | |||||||||||
Common share information - adjusted (dollars)2 | ||||||||||||||||
Per share earnings | ||||||||||||||||
Basic | $ | 1.15 | $ | 1.21 | $ | 0.98 | $ | 4.62 | $ | 4.28 | ||||||
Diluted | 1.14 | 1.20 | 0.98 | 4.61 | 4.27 | |||||||||||
Dividend payout ratio | 44.5 | % | 42.3 | % | 48.0 | % | 43.3 | % | 43.0 | % | ||||||
Price-earnings ratio | 11.7 | 11.9 | 13.0 | 11.7 | 13.0 |
1 | Certain comparative amounts have been restated, where applicable, as a result of the implementation of the 2015 IFRS Standards and Amendments. |
2 |
Adjusted measures are non-GAAP measures. Refer to the "How the Bank
Reports" section of this document for an explanation of reported and adjusted results. |
3 |
Adjusted return on common equity is a non-GAAP financial measure. Refer
to the "Return on Common Equity" section of this document for an explanation. |
4 |
Prior to 2015 and 2014, the amounts have not been adjusted to reflect
the impact of the 2015 IFRS Standards and Amendments and the 2014 IFRS Standards and Amendments, respectively. |
5 |
Effective the third quarter of 2014, each capital ratio has its own
risk-weighted assets (RWA) measure due to the Office of the
Superintendent of Financial Institutions (OSFI) prescribed scalar for inclusion of the Credit Valuation Adjustment (CVA). Effective the third quarter of 2014, the scalars for inclusion of CVA for Common Equity Tier 1 (CET1), Tier 1, and Total Capital RWA are 57%, 65%, and 77% respectively. For fiscal 2015, the scalars are 64%, 71%, and 77%, respectively. |
6 |
Excludes acquired credit-impaired (ACI) loans and debt securities
classified as loans. For additional information on ACI loans, refer to
the "Credit Portfolio Quality" section of the 2015 MD&A and Note 8 of the 2015 Consolidated Financial Statements. For additional information on debt securities classified as loans, refer to the "Exposure to Non-Agency Collateralized Mortgage Obligations" discussion and tables in the "Credit Portfolio Quality" section of the 2015 MD&A and Note 8 of the 2015 Consolidated Financial Statements. |
HOW WE PERFORMED
How the Bank Reports
The Bank prepares its Consolidated Financial Statements in accordance
with IFRS, the current GAAP, and refers to results prepared in
accordance with IFRS as "reported" results. The Bank also utilizes
non-GAAP financial measures to arrive at "adjusted" results to assess
each of its businesses and to measure the overall Bank performance. To
arrive at adjusted results, the Bank removes "items of note", net of
income taxes, from reported results. The items of note relate to items
which management does not believe are indicative of underlying business
performance. The Bank believes that adjusted results provide the reader
with a better understanding of how management views the Bank's
performance. The items of note are disclosed on Table 3. As explained,
adjusted results are different from reported results determined in
accordance with IFRS. Adjusted results, items of note, and related
terms used in this document are not defined terms under IFRS and,
therefore, may not be comparable to similar terms used by other
issuers. The Bank implemented 2015 IFRS Standards and Amendments, which
required retrospective application, effective the first quarter of
fiscal 2015. As a result, certain comparative amounts have been
restated where applicable. For more information, refer to Note 4 of the
2015 Consolidated Financial Statements. The 2015 IFRS Standards and
Amendments were not incorporated into the regulatory capital
disclosures presented prior to the first quarter of 2015.
TABLE 2: OPERATING RESULTS - Reported | |||||||||||||
(millions of Canadian dollars) | For the three months ended | For the twelve months ended | |||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||
Net interest income | $ | 4,887 | $ | 4,697 | $ | 4,457 | $ | 18,724 | $ | 17,584 | |||
Non-interest income | 3,160 | 3,309 | 2,995 | 12,702 | 12,377 | ||||||||
Total revenue | 8,047 | 8,006 | 7,452 | 31,426 | 29,961 | ||||||||
Provision for credit losses | 509 | 437 | 371 | 1,683 | 1,557 | ||||||||
Insurance claims and related expenses | 637 | 600 | 720 | 2,500 | 2,833 | ||||||||
Non-interest expenses | 4,911 | 4,292 | 4,331 | 18,073 | 16,496 | ||||||||
Income before income taxes and equity in net income | |||||||||||||
of an investment in associate | 1,990 | 2,677 | 2,030 | 9,170 | 9,075 | ||||||||
Provision for income taxes | 259 | 502 | 370 | 1,523 | 1,512 | ||||||||
Equity in net income of an investment in associate, net of income taxes | 108 | 91 | 86 | 377 | 320 | ||||||||
Net income - reported | 1,839 | 2,266 | 1,746 | 8,024 | 7,883 | ||||||||
Preferred dividends | 26 | 25 | 32 | 99 | 143 | ||||||||
Net income available to common shareholders and | |||||||||||||
non-controlling interests in subsidiaries | $ | 1,813 | $ | 2,241 | $ | 1,714 | $ | 7,925 | $ | 7,740 | |||
Attributable to: | |||||||||||||
Non-controlling interests | $ | 29 | $ | 28 | $ | 27 | $ | 112 | $ | 107 | |||
Common shareholders | 1,784 | 2,213 | 1,687 | 7,813 | 7,633 |
The following table provides a reconciliation between the Bank's adjusted and reported results.
TABLE 3: NON-GAAP FINANCIAL MEASURES - Reconciliation of Adjusted to Reported Net Income | |||||||||||||
(millions of Canadian dollars) | For the three months ended | For the twelve months ended | |||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | |||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||
Operating results - adjusted | |||||||||||||
Net interest income | $ | 4,887 | $ | 4,697 | $ | 4,457 | $ | 18,724 | $ | 17,584 | |||
Non-interest income1 | 3,209 | 3,288 | 2,995 | 12,713 | 12,097 | ||||||||
Total revenue | 8,096 | 7,985 | 7,452 | 31,437 | 29,681 | ||||||||
Provision for credit losses2 | 509 | 437 | 371 | 1,683 | 1,582 | ||||||||
Insurance claims and related expenses | 637 | 600 | 720 | 2,500 | 2,833 | ||||||||
Non-interest expenses3 | 4,480 | 4,261 | 4,188 | 17,076 | 15,863 | ||||||||
Income before income taxes and equity in net income of an | |||||||||||||
investment in associate | 2,470 | 2,687 | 2,173 | 10,178 | 9,403 | ||||||||
Provision for income taxes4 | 417 | 508 | 410 | 1,862 | 1,649 | ||||||||
Equity in net income of an investment in associate, net of income taxes5 | 124 | 106 | 99 | 438 | 373 | ||||||||
Net income - adjusted | 2,177 | 2,285 | 1,862 | 8,754 | 8,127 | ||||||||
Preferred dividends | 26 | 25 | 32 | 99 | 143 | ||||||||
Net income available to common shareholders and | |||||||||||||
non-controlling interests in subsidiaries - adjusted | 2,151 | 2,260 | 1,830 | 8,655 | 7,984 | ||||||||
Attributable to: | |||||||||||||
Non-controlling interests in subsidiaries, net of income taxes | 29 | 28 | 27 | 112 | 107 | ||||||||
Net income available to common shareholders - adjusted | 2,122 | 2,232 | 1,803 | 8,543 | 7,877 | ||||||||
Adjustments for items of note, net of income taxes | |||||||||||||
Amortization of intangibles6 | (65) | (62) | (62) | (255) | (246) | ||||||||
Restructuring charges7 | (243) | - | - | (471) | - | ||||||||
Charge related to the acquisition of Nordstrom Inc.'s (Nordstrom) credit card | |||||||||||||
portfolio and related integration costs8 | (51) | - | - | (51) | - | ||||||||
Litigation and litigation-related charge/reserve9 | - | 24 | - | (8) | - | ||||||||
Fair value of derivatives hedging the reclassified available-for-sale | |||||||||||||
securities portfolio10 | 21 | 19 | - | 55 | 43 | ||||||||
Integration charges and direct transaction costs relating to the acquisition | |||||||||||||
of the credit card portfolio of MBNA Canada11 | - | - | (54) | - | (125) | ||||||||
Set-up, conversion and other one-time costs related to affinity relationship | |||||||||||||
with Aimia and acquisition of Aeroplan Visa credit card accounts12 | - | - | - | - | (131) | ||||||||
Impact of Alberta flood on the loan portfolio13 | - | - | - | - | 19 | ||||||||
Gain on sale of TD Waterhouse Institutional Services14 | - | - | - | - | 196 | ||||||||
Total adjustments for items of note | (338) | (19) | (116) | (730) | (244) | ||||||||
Net income available to common shareholders - reported | $ | 1,784 | $ | 2,213 | $ | 1,687 | $ | 7,813 | $ | 7,633 |
1 |
Adjusted non-interest income excludes the following items of note: fourth quarter 2015 - $24 million gain due to change in fair value of derivatives hedging the reclassified available-for-sale securities portfolio, as explained in footnote 10; $73 million difference of the transaction price over the fair value of the Nordstrom assets acquired, as explained in footnote 8; third quarter 2015 - $21 million gain due to change in fair value of derivatives hedging the reclassified available-for-sale securities portfolio; second quarter 2015 - $17 million gain due to change in fair value of derivatives hedging the reclassified available-for-sale securities portfolio; third quarter 2014 - $27 million gain due to change in fair value of derivatives hedging the reclassified available-for-sale securities portfolio; first quarter 2014 - $22 million gain due to change in fair value of derivatives hedging the reclassified available-for-sale securities portfolio; $231 million gain due to the sale of TD Waterhouse Institutional Services, as explained in footnote 14. |
2 |
Adjusted provision for credit losses (PCL) excludes the following items
of note: third quarter 2014 - $25 million release of the provision for the impact of the Alberta flood on the loan portfolio, as explained in footnote 13. |
3 |
Adjusted non-interest expenses excludes the following items of note: fourth quarter 2015 - $73 million amortization of intangibles, as explained in footnote 6; $349 million due to the initiatives to reduce costs, as explained in footnote 7; $9 million due to integration costs related to the Nordstrom transaction, as explained in footnote 8; third quarter 2015 - $70 million amortization of intangibles; $39 million recovery of litigation losses, as explained in footnote 9; second quarter 2015 - $73 million amortization of intangibles; $337 million due to the initiatives to reduce costs; $52 million of litigation charges, as explained in footnote 9; first quarter 2015 - $73 million amortization of intangibles; fourth quarter 2014 - $70 million amortization of intangibles; $73 million of integration charges and direct transactions costs relating to the acquisition of the credit card portfolio of MBNA Canada, as explained in footnote 11; third quarter 2014 - $70 million amortization of intangibles; $36 million of integration charges relating to the acquisition of the credit card portfolio of MBNA Canada; $22 million of costs in relation to the affinity relationship with Aimia and acquisition of Aeroplan Visa credit card accounts, as explained in footnote 12; second quarter 2014 - $75 million amortization of intangibles; $32 million of integration charges and direct transactions costs relating to the acquisition of the credit card portfolio of MBNA Canada; first quarter 2014 - $71 million amortization of intangibles; $28 million of integration charges and direct transactions costs relating to the acquisition of the credit card portfolio of MBNA Canada; $156 million of costs in relation to the affinity relationship with Aimia and acquisition of Aeroplan Visa credit card accounts. |
4 |
For a reconciliation between reported and adjusted provision for income
taxes, refer to the "Non-GAAP Financial Measures - Reconciliation of Reported to Adjusted Provision for Income Taxes" table in the "Income Taxes" section of the MD&A. |
5 |
Adjusted equity in net income of an investment in associate excludes the
following items of note: fourth quarter 2015 - $16 million amortization of intangibles, as explained in footnote 6; third quarter 2015 - $15 million amortization of intangibles; second quarter 2015 - $16 million amortization of intangibles; first quarter 2015 - $14 million amortization of intangibles; fourth quarter 2014 - $13 million amortization of intangibles; third quarter 2014 - $13 million amortization of intangibles; second quarter 2014 - $13 million amortization of intangibles; first quarter 2014 - $14 million amortization of intangibles. |
6 |
Amortization of intangibles relate to intangibles acquired as a result
of asset acquisitions and business combinations. Although the amortization of software and asset servicing rights are recorded in amortization of intangibles, they are not included for purposes of the items of note. |
7 |
During 2015, the Bank commenced its restructuring review and in the
fourth quarter of 2015, the Bank recorded an additional restructuring charge of $349 million ($243 million after tax) on a net basis. In the second quarter of 2015 the Bank recorded $337 million ($228 million after tax) of restructuring charges. The restructuring charges incurred were intended to reduce costs and manage expenses in a sustainable manner and to achieve greater operational efficiencies. These measures included process redesign and business restructuring, retail branch and real estate optimization, and organizational review. These restructuring charges have been recorded as an adjustment to net income within the Corporate segment. |
8 |
On October 1, 2015, the Bank acquired substantially all of Nordstrom's
existing U.S. Visa and private label consumer credit card portfolio and became the primary issuer of Nordstrom credit cards in the U.S. The transaction was treated as an asset acquisition and the difference on the date of acquisition of the transaction price over the fair value of assets acquired has been recorded in Non-interest income. In addition, the Bank incurred set-up, conversion and other one-time costs related to integration of the acquired cards and related program agreement. These amounts are included as an item of note in the U.S. Retail segment. |
9 |
As a result of an adverse judgment and evaluation of certain other
developments and exposures in the U.S. in 2015, the Bank took prudent steps to reassess its litigation provision. Having considered these factors, including related or analogous cases, the Bank determined, in accordance with applicable accounting standards, that an increase of $52 million ($32 million after tax) to the Bank's litigation provision was required in the second quarter of 2015. During the third quarter of 2015, distributions of $39 million ($24 million after tax) were received by the Bank as a result of previous settlements reached on certain matters in the U.S., whereby the Bank was assigned the right to these distributions, if and when made available. The amount in the third quarter of 2015 reflects this recovery of previous settlements. |
10 |
The Bank changed its trading strategy with respect to certain trading
debt securities and reclassified these securities from trading to the available-for-sale category effective August 1, 2008. These debt securities are economically hedged, primarily with credit default swap and interest rate swap contracts which are recorded on a fair value basis with changes in fair value recorded in the period's earnings. Management believes that this asymmetry in the accounting treatment between derivatives and the reclassified debt securities results in volatility in earnings from period to period that is not indicative of the economics of the underlying business performance in Wholesale Banking. The Bank may from time to time replace securities within the portfolio to best utilize the initial, matched fixed term funding. As a result, the derivatives are accounted for on an accrual basis in Wholesale Banking and the gains and losses related to the derivatives in excess of the accrued amounts are reported in the Corporate segment. Adjusted results of the Bank exclude the gains and losses of the derivatives in excess of the accrued amount. |
11 |
As a result of the acquisition of the credit card portfolio of MBNA
Canada, as well as certain other assets and liabilities, the Bank
incurred integration charges. Integration charges consist of costs related to information technology, employee retention, external professional consulting charges, marketing (including customer communication and rebranding), integration-related travel, employee severance costs, consulting, and training. The Bank's integration charges related to the MBNA acquisition were higher than what were anticipated when the transaction was first announced. The elevated spending was primarily due to additional costs incurred (other than the amounts capitalized) to build out technology platforms for the business. Integration charges related to this acquisition were incurred by the Canadian Retail segment. The fourth quarter of 2014 was the last quarter Canadian Retail included any further MBNA-related integration charges as an item of note. |
12 |
On December 27, 2013, the Bank acquired approximately 50% of the
existing Aeroplan credit card portfolio from the Canadian Imperial Bank of Commerce (CIBC) and on January 1, 2014, the Bank became the primary issuer of Aeroplan Visa credit cards. The Bank incurred program set-up, conversion, and other one-time costs related to the acquisition of the portfolio and related affinity agreement, consisting of information technology, external professional consulting, marketing, training, and program management, as well as a commercial subsidy payment of $127 million ($94 million after tax) payable to CIBC. These costs were included as an item of note in the Canadian Retail segment. The third quarter of 2014 was the last quarter Canadian Retail included any set-up, conversion, or other one-time costs related to the acquired Aeroplan credit card portfolio as an item of note. |
13 |
In the third quarter of 2013, the Bank recorded PCL of $65 million ($48
million after tax) for residential loan losses from Alberta flooding. In the fourth quarter of 2013, a provision of $40 million ($29 million after tax) was released. In the third quarter of 2014, the Bank released the remaining provision of $25 million ($19 million after tax). The release of the remaining provision reflects low levels of delinquency and impairments to date, as well as a low likelihood of future material losses within the portfolio. |
14 |
On November 12, 2013, TD Waterhouse Canada Inc., a subsidiary of the
Bank, completed the sale of the Bank's institutional services business, known as TD Waterhouse Institutional Services, to a subsidiary of National Bank of Canada. The transaction price was $250 million in cash, subject to certain price adjustment mechanisms which were settled in the third and fourth quarters of 2014. On the transaction date, a gain of $196 million after tax was recorded in the Corporate segment in other income. The gain is not considered to be in the normal course of business for the Bank. |
TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE (EPS)1 | |||||||||||
(Canadian dollars) | For the three months ended | For the twelve months ended | |||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | |||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||
Basic earnings per share - reported | $ | 0.96 | $ | 1.20 | $ | 0.92 | $ | 4.22 | $ | 4.15 | |
Adjustments for items of note2 | 0.19 | 0.01 | 0.06 | 0.40 | 0.13 | ||||||
Basic earnings per share - adjusted | $ | 1.15 | $ | 1.21 | $ | 0.98 | $ | 4.62 | $ | 4.28 | |
Diluted earnings per share - reported | $ | 0.96 | $ | 1.19 | $ | 0.91 | $ | 4.21 | $ | 4.14 | |
Adjustments for items of note2 | 0.18 | 0.01 | 0.07 | 0.40 | 0.13 | ||||||
Diluted earnings per share - adjusted | $ | 1.14 | $ | 1.20 | $ | 0.98 | $ | 4.61 | $ | 4.27 |
1 |
EPS is computed by dividing net income available to common shareholders
by the weighted-average number of shares outstanding during the period. |
2 |
For explanations of items of note, refer to the "Non-GAAP Financial
Measures - Reconciliation of Adjusted to Reported Net Income" table in the "How We Performed" section of this document. |
TABLE 5: NON-GAAP FINANCIAL MEASURES - Reconciliation of Reported to Adjusted Provision for Income Taxes | ||||||||||||||||
(millions of Canadian dollars, except as noted) | For the three months ended | For the twelve months ended | ||||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | ||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Provision for income taxes - reported | $ | 259 | $ | 502 | $ | 370 | $ | 1,523 | $ | 1,512 | ||||||
Adjustments for items of note: Recovery of (provision for) | ||||||||||||||||
income taxes1,2 | ||||||||||||||||
Amortization of intangibles | 24 | 23 | 21 | 95 | 93 | |||||||||||
Restructuring charges | 106 | - | - | 215 | - | |||||||||||
Charge related to the acquisition of Nordstrom's credit card | ||||||||||||||||
portfolio and related integration costs | 31 | - | - | 31 | - | |||||||||||
Litigation and litigation-related charge/reserve | - | (15) | - | 5 | - | |||||||||||
Fair value of derivatives hedging the reclassified | ||||||||||||||||
available-for-sale securities portfolio | (3) | (2) | - | (7) | (6) | |||||||||||
Integration charges and direct transactions costs relating to the | ||||||||||||||||
acquisition of the credit card portfolio of MBNA Canada | - | - | 19 | - | 44 | |||||||||||
Set-up, conversion and other one-time costs related to affinity | ||||||||||||||||
relationship with Aimia and acquisition of Aeroplan Visa | ||||||||||||||||
credit card accounts | - | - | - | - | 47 | |||||||||||
Impact of Alberta flood on the loan portfolio | - | - | - | - | (6) | |||||||||||
Gain on sale of TD Waterhouse Institutional Services | - | - | - | - | (35) | |||||||||||
Total adjustments for items of note | 158 | 6 | 40 | 339 | 137 | |||||||||||
Provision for income taxes - adjusted | $ | 417 | $ | 508 | $ | 410 | $ | 1,862 | $ | 1,649 | ||||||
Effective income tax rate - adjusted3 | 16.9 | % | 18.9 | % | 18.9 | % | 18.3 | % | 17.5 | % |
1 |
For explanations of items of note, refer to the "Non-GAAP Financial
Measures - Reconciliation of Adjusted to Reported Net Income" table in the "How We Performed" section of this document. |
2 | The tax effect for each item of note is calculated using the effective statutory income tax rate of the applicable legal entity. |
3 |
Adjusted effective income tax rate is the adjusted provision for income
taxes before other taxes as a percentage of adjusted net income before taxes. |
Return on Common Equity
The Bank's methodology for allocating capital to its business segments
is aligned with the common equity capital requirements under Basel III.
Beginning November 1, 2014, capital allocated to the business segments
is based on 9% Common Equity Tier 1 (CET1) Capital.
Adjusted return on common equity (ROE) is adjusted net income available to common shareholders as a percentage of average common equity.
Adjusted ROE is a non-GAAP financial measure as it is not a defined term under IFRS. Readers are cautioned that earnings and other measures adjusted to a basis other than IFRS do not have standardized meanings under IFRS and, therefore, may not be comparable to similar terms used by other issuers.
TABLE 6: RETURN ON COMMON EQUITY | ||||||||||||||||
(millions of Canadian dollars, except as noted) | For the three months ended | For the twelve months ended | ||||||||||||||
October 31 | July 31 | October 31 | October 31 | October 31 | ||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | ||||||||||||
Average common equity | $ | 62,157 | $ | 58,891 | $ | 51,253 | $ | 58,178 | $ | 49,495 | ||||||
Net income available to common shareholders | ||||||||||||||||
- reported | 1,784 | 2,213 | 1,687 | 7,813 | 7,633 | |||||||||||
Items of note, net of income taxes1 | 338 | 19 | 116 | 730 | 244 | |||||||||||
Net income available to common shareholders | ||||||||||||||||
- adjusted | 2,122 | 2,232 | 1,803 | 8,543 | 7,877 | |||||||||||
Return on common equity - adjusted | 13.5 | % | 15.0 | % | 14.0 | % | 14.7 | % | 15.9 | % |
1 |
For explanations of items of note, refer to the "Non-GAAP Financial
Measures - Reconciliation of Adjusted to Reported Net Income" table in the "How We Performed" section of this document. |
SIGNIFICANT EVENTS IN 2015
Restructuring Charges
During 2015, the Bank commenced its restructuring review and in the
fourth quarter of 2015, the Bank recorded an additional restructuring
charge of $349 million ($243 million after tax) on a net basis. In the
second quarter of 2015 the Bank recorded $337 million ($228 million
after tax) of restructuring charges. The restructuring charges incurred
were intended to reduce costs and manage expenses in a sustainable
manner and to achieve greater operational efficiencies. These measures
included process redesign and business restructuring, retail branch and
real estate optimization, and organizational review.
Acquisition of Nordstrom Inc.'s U.S. Credit Card Portfolio
On October 1, 2015, the Bank, through its subsidiary, TD Bank USA,
National Association (TD Bank USA, N.A.), acquired substantially all of
Nordstrom Inc.'s (Nordstrom) existing U.S. Visa and private label
consumer credit card portfolio, with a gross outstanding balance of
$2.9 billion (US$2.2 billion). In addition, the Bank and Nordstrom
entered into a long-term agreement under which the Bank became the
exclusive U.S. issuer of Nordstrom-branded Visa and private label
consumer credit cards to Nordstrom customers.
At the date of acquisition the Bank recorded the credit card receivables at their fair value of $2.9 billion. The transaction was treated as an asset acquisition and the pre-tax difference of $73 million on the date of acquisition of the transaction price over the fair value of assets acquired has been recorded in Non-interest income. The gross amounts of revenue and credit losses have been recorded on the Consolidated Statement of Income in the U.S. Retail segment since that date. Nordstrom shares in a fixed percentage of the revenue and credit losses incurred. Nordstrom's share of revenue and credit losses is recorded in Non-interest expenses on the Consolidated Statement of Income and related receivables from, or payables to Nordstrom are recorded in Other assets or Other liabilities, respectively, on the Consolidated Balance Sheet.
HOW OUR BUSINESSES PERFORMED
For management reporting purposes, the Bank reports its results under three key business segments: Canadian Retail, which includes the results of the Canadian personal and commercial banking businesses, Canadian credit cards, TD Auto Finance Canada, and Canadian wealth and insurance businesses; U.S. Retail, which includes the results of the U.S. personal and commercial banking businesses, U.S. credit cards, TD Auto Finance U.S., U.S. wealth business, and the Bank's investment in TD Ameritrade; and Wholesale Banking. The Bank's other activities are grouped into the Corporate segment.
Effective October 1, 2015, the results of the acquired Nordstrom U.S. Credit Card Portfolio are reported in the U.S. Retail segment. Effective December 27, 2013, and January 1, 2014, the results of the acquired Aeroplan credit card portfolio and the results of the related affinity relationship with Aimia Inc. (collectively, "Aeroplan") are reported in the Canadian Retail segment.
Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. The Bank measures and evaluates the performance of each segment based on adjusted results, where applicable, and for those segments the Bank indicates that the measure is adjusted. Net income for the operating business segments is presented before any items of note not attributed to the operating segments. For further details, refer to the "How the Bank Reports" section of this document, the "Business Focus" section in the 2015 MD&A, and Note 30 of the Bank's Consolidated Financial Statements for the year ended October 31, 2015. For information concerning the Bank's measure of adjusted return on average common equity, which is a non-GAAP financial measure, refer to the "How We Performed" section of this document.
Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt income, including dividends, is adjusted to its equivalent before-tax value. Using TEB allows the Bank to measure income from all securities and loans consistently and makes for a more meaningful comparison of net interest income with similar institutions. The TEB increase to net interest income and provision for income taxes reflected in Wholesale Banking results are reversed in the Corporate segment. The TEB adjustment for the quarter was $95 million, compared with $76 million in the fourth quarter last year, and $91 million in the prior quarter.
TABLE 7: CANADIAN RETAIL | ||||||||||
(millions of Canadian dollars, except as noted) | For the three months ended | |||||||||
October 31 | July 31 | October 31 | ||||||||
2015 | 2015 | 2014 | ||||||||
Net interest income | $ | 2,497 | $ | 2,480 | $ | 2,435 | ||||
Non-interest income | 2,500 | 2,531 | 2,485 | |||||||
Total revenue | 4,997 | 5,011 | 4,920 | |||||||
Provision for credit losses | 221 | 237 | 250 | |||||||
Insurance claims and related expenses | 637 | 600 | 720 | |||||||
Non-interest expenses - reported | 2,143 | 2,104 | 2,224 | |||||||
Non-interest expenses - adjusted | 2,143 | 2,104 | 2,151 | |||||||
Net income - reported | 1,496 | 1,557 | 1,304 | |||||||
Adjustments for items of note, net of income taxes1 | ||||||||||
Integration charges and direct transaction costs relating to the acquisition | ||||||||||
of the credit card portfolio of MBNA Canada | - | - | 54 | |||||||
Net income - adjusted | $ | 1,496 | $ | 1,557 | $ | 1,358 | ||||
Selected volumes and ratios | ||||||||||
Return on common equity - reported2 | 42.3 | % | 44.6 | % | 40.8 | % | ||||
Return on common equity - adjusted2 | 42.3 | 44.6 | 42.5 | |||||||
Margin on average earning assets (including securitized assets) - reported and adjusted | 2.84 | 2.88 | 2.92 | |||||||
Efficiency ratio - reported | 42.9 | 42.0 | 45.2 | |||||||
Efficiency ratio - adjusted | 42.9 | 42.0 | 43.7 | |||||||
Number of Canadian retail branches | 1,165 | 1,166 | 1,165 | |||||||
Average number of full-time equivalent staff | 38,782 | 39,180 | 39,671 |
1 |
For explanations of items of note, refer to the "Non-GAAP Financial
Measures − Reconciliation of Adjusted to Reported Net Income" table in the "How We Performed" section of this document. |
2 |
Effective the first quarter of fiscal 2015, capital allocated to the
business segments is based on 9% CET1 Capital. These changes have been applied prospectively. |
Quarterly comparison - Q4 2015 vs. Q4 2014
Canadian Retail net income for the quarter on a reported basis was
$1,496 million, an increase of $192 million, or 15%, compared with the
fourth quarter last year. Adjusted net income for the quarter was
$1,496 million, an increase of $138 million, or 10%, compared with the
fourth quarter last year. The increase in adjusted earnings was
primarily due to good loan and deposit volume growth, wealth asset
growth, strong credit performance, higher insurance earnings, and good
expense management. The reported and adjusted annualized return on
common equity for the quarter was 42.3%, compared with 40.8% and 42.5%,
respectively, in the fourth quarter last year.
Canadian Retail revenue is derived from the Canadian personal and commercial banking businesses, including credit cards, auto finance, wealth, and insurance businesses. Revenue for the quarter was $4,997 million, an increase of $77 million, or 2%, compared with the fourth quarter last year. Net interest income increased $62 million, or 3%, compared with the fourth quarter last year, primarily driven by good loan and deposit volume growth partially offset by lower margins. Non-interest income increased $15 million, or 1%, largely due to higher fee-based revenue in personal and commercial banking, good wealth asset growth, and insurance premium growth, partially offset by a change in mix of reinsurance contracts and the change in fair value of investments supporting insurance claims liabilities.
The personal banking business generated good lending volume growth of $13.3 billion, or 5%, compared with the fourth quarter last year. Average real estate secured lending volume increased $10.8 billion, or 5%. Auto lending average volume increased $2.6 billion, or 16%, while all other personal lending average volumes were flat. Business loans and acceptances average volume increased $4.9 billion, or 9%. Average personal deposit volumes increased $9.3 billion, or 6%, due to strong growth in core chequing and savings volumes, partially offset by lower term deposit volume. Average business deposit volumes increased $3.8 billion, or 5%. Margin on average earning assets was 2.84%, an 8 basis points (bps) decrease, compared with the fourth quarter last year, primarily due to the low rate environment and competitive pricing.
Assets under administration (AUA) were $310 billion as at October 31, 2015, an increase of $17 billion, or 6%, and assets under management (AUM) were $245 billion at October 31, 2015, an increase of $18 billion, or 8%, compared with last year, driven by strong new asset growth.
Provision for credit losses (PCL) for the quarter was $221 million, a decrease of $29 million, or 12%, compared with the fourth quarter last year. Personal banking PCL was $228 million, a decrease of $3 million, or 1%, primarily due to lower provisions in credit cards, partially offset by higher provisions in the auto lending portfolio. Business banking PCL decreased $26 million, primarily due to higher recoveries and lower provisions in the current quarter. Annualized PCL as a percentage of credit volume was 0.25%, a decrease of 5 bps, compared with the fourth quarter last year. Net impaired loans were $715 million, a decrease of $119 million, or 14%, compared with the fourth quarter last year. Net impaired loans as a percentage of total loans were 0.20%, compared with 0.25% as at October 31, 2014.
Insurance claims and related expenses for the quarter were $637 million, a decrease of $83 million, or 12%, compared with the fourth quarter last year, primarily due to a change in mix of reinsurance contracts, more favourable prior years' claims development, and the change in fair value of investments supporting claims liabilities, partially offset by higher current year claims costs.
Reported non-interest expenses for the quarter were $2,143 million, a decrease of $81 million, or 4%, compared with the fourth quarter last year. Adjusted non-interest expenses for the quarter were $2,143 million, a decrease of $8 million, compared with the fourth quarter last year. The decrease was primarily driven by initiatives to increase productivity, partially offset by higher revenue-based variable compensation in the wealth business and legal provisions.
The reported and adjusted efficiency ratio for the quarter was 42.9%, compared with 45.2% and 43.7%, respectively, in the fourth quarter last year.
Quarterly comparison - Q4 2015 vs. Q3 2015
Canadian Retail net income for the quarter decreased $61 million, or 4%,
compared with the prior quarter. The decrease in earnings was primarily
due to higher insurance claims and an increase in non-interest
expenses, partially offset by lower PCL compared with the prior
quarter. The reported and adjusted annualized return on common equity
for the quarter was 42.3%, compared with 44.6%, in the prior quarter.
Revenue for the quarter decreased $14 million, compared with the prior quarter. Net interest income increased $17 million, or 1% compared with the prior quarter as the increase from volume growth was partially offset by margin compression. Non-interest income decreased $31 million or 1%, primarily due to the change in fair value of investments supporting insurance claims and lower wealth asset-based revenue. Margin on average earning assets was 2.84%, a 4 bps decrease compared with the prior quarter, primarily due to a decline in deposit margins due to the low rate environment, and seasonally lower mortgage renewal revenue.
The personal banking business generated average lending volume growth of $5.9 billion, or 2%, compared with the prior quarter. Average real estate secured lending volume increased $5.4 billion, or 2%. Auto lending average volume increased $0.8 billion, or 5%, while all other personal lending average volumes decreased $0.3 billion, or 1% compared with the prior quarter. Business loans and acceptances average volume increased $1.1 billion, or 2%. Average personal deposit volumes increased $3.7 billion, or 2%, due to growth in core chequing and savings volumes, partially offset by lower term deposit volume. Average business deposit volumes increased $0.4 billion, compared with the prior quarter.
AUA were $310 billion as at October 31, 2015, a decrease of $4 billion, or 1%, and AUM were $245 billion at October 31, 2015, a decrease of $4 billion, or 2% compared with July 31, 2015, driven primarily by decrease in market value, partially offset by new asset growth.
PCL for the quarter decreased $16 million, or 7%, compared with the prior quarter. Personal banking PCL increased $23 million or 11%, primarily due to higher provisions in auto lending and credit cards portfolios. Business banking PCL decreased $39 million, due to higher provisions against two commercial clients in the prior quarter and higher recoveries in the current quarter. Annualized PCL as a percentage of credit volume was 0.25%, a decrease of 2 bps compared with the prior quarter. Net impaired loans increased $9 million, or 1%, compared with the prior quarter. Net impaired loans as a percentage of total loans were 0.20%, in line with the prior quarter.
Insurance claims and related expenses for the quarter increased $37 million, or 6%, compared with the prior quarter, primarily due to weather-related events, and less favourable prior years' claims development, partly offset by the change in fair value of investments supporting claims liabilities.
Non-interest expenses for the quarter increased $39 million, or 2%, compared with the prior quarter due to legal provisions, and higher seasonal marketing expenses, partially offset by lower employee-related costs.
The reported and adjusted efficiency ratio for the quarter was 42.9%, compared with 42.0%, in the prior quarter.
TABLE 8: U.S. RETAIL1,2 | |||||||||||||||||||
(millions of dollars, except as noted) | For the three months ended | ||||||||||||||||||
Canadian dollars | U.S. dollars | ||||||||||||||||||
October 31 | July 31 | October 31 | October 31 | July 31 | October 31 | ||||||||||||||
2015 | 2015 | 2014 | 2015 | 2015 | 2014 | ||||||||||||||
Net interest income | $ | 1,905 | $ | 1,734 | $ | 1,515 | $ | 1,447 | $ | 1,392 | $ | 1,370 | |||||||
Non-interest income | 600 | 647 | 532 | 456 | 519 | 481 | |||||||||||||
Total revenue - reported | 2,505 | 2,381 | 2,047 | 1,903 | 1,911 | 1,851 | |||||||||||||
Total revenue - adjusted | 2,578 | 2,381 | 2,047 | 1,959 | 1,911 | 1,851 | |||||||||||||
Provision for credit losses - loans3 | 270 | 199 | 161 | 206 | 160 | 145 | |||||||||||||
Provision for (recovery of) credit losses - debt | |||||||||||||||||||
securities classified as loans | (29) | 1 | (22) | (22) | 1 | (20) | |||||||||||||
Provision for credit losses | 241 | 200 | 139 | 184 | 161 | 125 | |||||||||||||
Non-interest expenses - reported | 1,730 | 1,470 | 1,381 | 1,315 | 1,179 | 1,249 | |||||||||||||
Non-interest expenses - adjusted | 1,721 | 1,509 | 1,381 | 1,308 | 1,209 | 1,249 | |||||||||||||
U.S. Retail Bank net income - reported4 | 486 | 582 | 426 | 368 | 469 | 385 | |||||||||||||
Adjustments for items of note, net of | |||||||||||||||||||
income taxes5 | |||||||||||||||||||
Charge related to the acquisition of Nordstrom's | |||||||||||||||||||
credit card portfolio and related integration costs | 51 | - | - | 39 | - | - | |||||||||||||
Litigation and litigation-related charge/reserve | - | (24) | - | - | (19) | - | |||||||||||||
U.S. Retail Bank net income - adjusted | 537 | 558 | 426 | 407 | 450 | 385 | |||||||||||||
Equity in net income of an investment in associate, | |||||||||||||||||||
net of income taxes | 109 | 92 | 83 | 84 | 74 | 77 | |||||||||||||
Net income - adjusted | $ | 646 | $ | 650 | $ | 509 | $ | 491 | $ | 524 | $ | 462 | |||||||
Net income - reported | 595 | 674 | 509 | 452 | 543 | 462 | |||||||||||||
Selected volumes and ratios | |||||||||||||||||||
Return on common equity - reported6 | 7.1 | % | 8.6 | % | 7.6 | % | 7.1 | % | 8.6 | % | 7.6 | % | |||||||
Return on common equity - adjusted6 | 7.8 | 8.3 | 7.6 | 7.8 | 8.3 | 7.6 | |||||||||||||
Margin on average earning assets (TEB)7 | 3.59 | 3.50 | 3.65 | 3.59 | 3.50 | 3.65 | |||||||||||||
Efficiency ratio - reported | 69.1 | 61.7 | 67.5 | 69.1 | 61.7 | 67.5 | |||||||||||||
Efficiency ratio - adjusted | 66.8 | 63.4 | 67.5 | 66.8 | 63.4 | 67.5 | |||||||||||||
Number of U.S. retail stores | 1,298 | 1,305 | 1,318 | 1,298 | 1,305 | 1,318 | |||||||||||||
Average number of full-time equivalent staff | 25,250 | 25,546 | 26,162 | 25,250 | 25,546 | 26,162 |
1 | Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period. |
2 |
Revenue, PCL, and expenses related to Target Corporation (Target) and
Nordstrom are reported on a gross basis in the Consolidated Statements of Income. |
3 | Includes provisions for credit losses on ACI loans including all Federal Deposit Insurance Corporation (FDIC) covered loans. |
4 | Results exclude the impact related to the equity in net income of the investment in TD Ameritrade. |
5 |
For explanations of items of note, refer to the "Non-GAAP Financial
Measures - Reconciliation of Adjusted to Reported Net Income" table in the "How We Performed" section of this document. |
6 |
Effective the first quarter of fiscal 2015, capital allocated to the
business segments is based on 9% CET1 Capital. These changes have been applied prospectively. |
7 |
The margin on average earning assets excludes the impact related to the
TD Ameritrade insured deposit accounts (IDA). On a prospective basis, beginning in the second quarter of 2015, the margin on average earning assets (a) excludes the impact of cash collateral deposited by affiliates with the U.S. banks, which have been eliminated at the U.S. Retail segment level and (b) the allocation of investments to the IDA has been changed to reflect the Basel III liquidity rules. |
Quarterly comparison - Q4 2015 vs. Q4 2014
U.S. Retail net income for the quarter on a reported basis was $595
million (US$452 million). U.S. Retail adjusted net income for the
quarter was $646 million (US$491 million), which included net income of
$537 million (US$407 million) from the U.S. Retail Bank and $109
million (US$84 million) from TD's investment in TD Ameritrade. U.S.
dollar adjusted earnings were up 6% compared with the prior year, while
Canadian dollar earnings benefited from the strengthening of the U.S.
dollar with adjusted earnings up 27% to $646 million. The reported and
adjusted annualized ROE for the quarter was 7.1% and 7.8% respectively,
compared to 7.6% for the fourth quarter last year.
U.S. Retail Bank net income for the quarter on a reported basis was US$368 million, a decrease of US$17 million, or 4%, compared with the fourth quarter last year. U.S. Retail Bank adjusted net income for the quarter was US$407 million, an increase of US$22 million, or 6%, compared with the fourth quarter last year primarily due to strong organic growth and a lower effective tax rate, partially offset by higher PCL. The contribution from TD Ameritrade of US$84 million was up 9% compared with the fourth quarter last year, primarily due to strong asset growth and higher transaction revenue, partially offset by higher operating expenses and lower investment gains.
U.S. Retail Bank revenue is derived from personal banking, business banking, investments, auto lending, credit cards, and wealth management. Reported revenue for the quarter was US$1,903 million, an increase of US$52 million, or 3%, compared with the fourth quarter last year. On an adjusted basis, revenue for the quarter was US$1,959 million, an increase of US$108 million, or 6%, compared with the fourth quarter last year, primarily due to strong loan and deposit growth, broad-based fee growth, and the Nordstrom acquisition, partially offset by lower margins. Other non-interest income increased due to the Nordstrom acquisition and customer account growth. Margin on average earning assets was 3.59%, a 6 bps decrease compared with the fourth quarter last year. Excluding Nordstrom, margin on average earning assets was 3.54%, a decline of 11 bps due to lower loan margins and change in balance sheet mix. Excluding Nordstrom, average loan volumes increased US$12 billion, or 11%, compared with the fourth quarter last year, due to growth in business loans of 17% and growth in personal loans of 4%. Average deposit volumes increased US$14 billion, or 7%, compared with the fourth quarter last year, driven by 7% growth in business deposit volume, 8% growth in personal deposit volume, and 6% growth in TD Ameritrade deposits.
PCL for the quarter was US$184 million, an increase of US$59 million, or 47%, compared with the fourth quarter last year, primarily due to higher provisions for commercial loans and provisions related to the flooding in South Carolina. Personal banking PCL was US$170 million, an increase of US$53 million, or 45%, compared with the fourth quarter last year, primarily due to the South Carolina flooding provision and volume growth. Business banking PCL was US$35 million, a $7 million increase as compared to the fourth quarter last year. Net impaired loans, excluding acquired credit-impaired (ACI) loans and debt securities classified as loans, were US$1.5 billion, an increase of US$209 million, or 17%, compared with the fourth quarter last year driven primarily by inclusion of certain performing home equity loans that have been reported as impaired, because borrowers may not qualify under current underwriting guidelines. Net impaired loans as a percentage of total loans were 1.1% as at October 31, 2015, flat compared with the fourth quarter last year. Net impaired debt securities classified as loans were US$797 million, a decrease of US$122 million, or 13%, compared with the fourth quarter last year.
Reported non-interest expenses for the quarter were US$1,315 million, an increase of US$66 million, or 5%, compared with the fourth quarter last year. On an adjusted basis, non-interest expenses were US$1,308 million, an increase of US$59 million, or 5%, compared with the fourth quarter last year, primarily due to the Nordstrom acquisition, higher legal costs, and investments to support business growth, partially offset by ongoing productivity savings.
The reported efficiency ratio for the quarter was 69.1%, compared with 67.5% in the fourth quarter last year, while the adjusted efficiency ratio was 66.8%, compared with 67.5% in the fourth quarter last year.
Quarterly comparison - Q4 2015 vs. Q3 2015
U.S. Retail Bank reported net income for the quarter decreased US$101
million, or 22%, compared with the prior quarter. U.S. Retail Bank
adjusted net income for the quarter decreased US$43 million, or 10%,
primarily due to higher expenses and higher PCL. The contribution from
TD Ameritrade increased US$10 million, or 14%, compared with the prior
quarter primarily due to strong asset growth and higher transaction
revenue, partially offset by higher operating expenses and lower
investment gains. The reported annualized ROE for the quarter was 7.1%,
compared with 8.6% in the prior quarter. The adjusted annualized ROE
for the quarter was 7.8%, compared with 8.3% in the prior quarter.
Reported revenue for the quarter decreased US$8 million, relatively flat compared with the prior quarter. On an adjusted basis, revenue for the quarter increased US$48 million, or 3%, compared with the prior quarter, primarily due to the Nordstrom acquisition. Margin on average earning assets was 3.59%, a 9 bps increase compared with the prior quarter. Excluding Nordstrom, margin on average earning assets was 3.54%, a 4 bps increase primarily due to favourable balance sheet mix and higher accretion. Excluding Nordstrom, average loan volumes increased US$4 billion, or 3%, compared with the prior quarter, due to growth in business loans of 4% and growth in personal loans of 2%. Average deposit volumes increased US$8 billion, or 4%, compared with the prior quarter, driven by 6% growth in business deposit volume, 1% growth in personal deposit volume, and 5% growth in TD Ameritrade deposits.
PCL for the quarter increased US$23 million, or 14%, compared with the prior quarter, primarily due to provisions related to the South Carolina flooding and seasonally higher charge-offs in auto loans, partially offset by a recovery on certain debt securities classified as loans. Personal banking PCL increased US$55 million, or 48%, compared with the prior quarter primarily due to the South Carolina flooding provision and credit card volume growth. Business banking PCL decreased US$10 million compared with the prior quarter. Net impaired loans, excluding ACI loans and debt securities classified as loans, increased US$86 million, or 6% compared with the prior quarter driven primarily by inclusion of certain performing home equity loans that have been reported as impaired, because borrowers may not qualify under current underwriting guidelines. Net impaired loans as a percentage of total loans were flat compared with prior quarter. Net impaired debt securities classified as loans decreased US$15 million, or 2%, compared with the prior quarter.
Reported non-interest expenses for the quarter increased US$136 million, or 12%, compared with the prior quarter. Adjusted non-interest expenses for the quarter increased US$99 million, or 8%, compared with the prior quarter, primarily due to the Nordstrom acquisition, higher legal costs, and investments to support business growth, partially offset by productivity savings.
The reported efficiency ratio for the quarter was 69.1%, compared with 61.7% in the prior quarter, while the adjusted efficiency ratio was 66.8%, compared with 63.4% in the prior quarter.
TABLE 9: WHOLESALE BANKING | |||||||||
(millions of Canadian dollars, except as noted) | For the three months ended | ||||||||
October 31 | July 31 | October 31 | |||||||
2015 | 2015 | 2014 | |||||||
Net interest income (TEB) | $ | 550 | $ | 564 | $ | 537 | |||
Non-interest income | 116 | 201 | 67 | ||||||
Total revenue | 666 | 765 | 604 | ||||||
Provision for credit losses | 14 | 2 | (1) | ||||||
Non-interest expenses | 390 | 431 | 381 | ||||||
Net income | $ | 196 | $ | 239 | $ | 160 | |||
Selected volumes and ratios | |||||||||
Trading-related revenue1 | $ | 316 | $ | 425 | $ | 296 | |||
Gross drawn (billions of dollars)2 | 16 | 16 | 12 | ||||||
Return on common equity3 | 13.0 | % | 17.2 | % | 13.0 | % | |||
Efficiency ratio | 58.6 | 56.3 | 63.1 | ||||||
Average number of full-time equivalent staff | 3,741 | 3,736 | 3,727 |
1 |
In the fourth quarter of 2014, the Bank implemented a funding valuation
adjustment (FVA) in response to growing evidence that market implied funding costs and benefits are now considered in the pricing and fair valuation of uncollateralized derivatives. Refer to Note 5 of the Consolidated Financial Statements for further information on FVA. |
2 |
Includes gross loans and bankers' acceptances, excluding letters of
credit and before any cash collateral, credit default swaps (CDS), reserves, etc., for the corporate lending business. |
3 |
Effective the first quarter of fiscal 2015, capital allocated to the
business segments is based on 9% CET1 Capital. These changes have been applied prospectively. |
Quarterly comparison - Q4 2015 vs. Q4 2014
Wholesale Banking net income for the quarter was $196 million, an
increase of $36 million, or 23%, compared with the fourth quarter last
year. The increase in earnings was primarily due to higher revenue,
partially offset by higher PCL and higher non-interest expenses. The
annualized ROE for the quarter was 13.0%, flat to the fourth quarter
last year.
Wholesale Banking revenue is derived primarily from capital markets services and corporate lending. The capital markets businesses generate revenue from advisory, underwriting, trading, facilitation, and trade execution services. Revenue for the quarter was $666 million, an increase of $62 million, or 10%, compared with the fourth quarter last year. Revenue increased primarily on higher trading-related performance and higher corporate lending growth both in Canada and the U.S., partially offset by lower equity underwriting, reflecting lower industry activity. The revenue increase also included the positive impact of foreign exchange translation. Trading-related revenue increased mainly due to higher foreign exchange trading on improved client activity, and higher fixed income trading as the prior year included the first-time implementation of a funding valuation adjustment (FVA) which resulted in a pre-tax additional charge of $65 million, partially offset by lower equity trading.
PCL for the quarter was a charge of $14 million and consisted primarily of the accrual cost of credit protection and a specific credit provision in the corporate lending portfolio. PCL in the fourth quarter last year was a net recovery of $1 million, as the accrual cost of credit protection was largely offset by a recovery of a previously recorded provision in the investment portfolio.
Non-interest expenses for the quarter were $390 million, an increase of $9 million, or 2%, compared with the fourth quarter last year. The increase was primarily due to the impact of foreign exchange translation and higher operating expenses, partially offset by lower variable compensation.
Quarterly comparison - Q4 2015 vs. Q3 2015
Wholesale Banking net income for the quarter decreased $43 million, or
18%, compared with the prior quarter. The decrease was largely due to
lower revenue and higher PCL, partially offset by lower non-interest
expenses. The annualized ROE for the quarter was 13.0%, compared with
17.2% in the prior quarter.
Revenue for the quarter decreased $99 million, or 13%, compared with the prior quarter. The decrease in revenue was primarily due to lower fixed income and equity trading on reduced client volumes, and lower underwriting fees as the prior quarter benefited from stronger debt and equity capital markets. This decrease was partially offset by higher corporate lending reflecting increased loan volumes, and higher foreign exchange trading.
PCL for the quarter was $14 million, compared with $2 million in the prior quarter. PCL in the current quarter consisted primarily of the accrual cost of credit protection and a specific credit provision in the corporate lending portfolio.
Non-interest expenses for the quarter decreased $41 million, or 10%, primarily due to lower variable compensation commensurate with revenue.
TABLE 10: CORPORATE | ||||||||||
(millions of Canadian dollars) | For the three months ended | |||||||||
October 31 | July 31 | October 31 | ||||||||
2015 | 2015 | 2014 | ||||||||
Net income (loss) - reported | $ | (448) | $ | (204) | $ | (227) | ||||
Adjustments for items of note1 | ||||||||||
Amortization of intangibles | 65 | 62 | 62 | |||||||
Restructuring charges | 243 | - | - | |||||||
Fair value of derivatives hedging the reclassified available-for-sale | ||||||||||
securities portfolio | (21) | (19) | - | |||||||
Total adjustments for items of note | 287 | 43 | 62 | |||||||
Net income (loss) - adjusted | $ | (161) | $ | (161) | $ | (165) | ||||
Decomposition of items included in net income (loss) - adjusted | ||||||||||
Net corporate expenses | $ | (192) | $ | (193) | $ | (233) | ||||
Other | 2 | 4 | 41 | |||||||
Non-controlling interests | 29 | 28 | 27 | |||||||
Net income (loss) - adjusted | $ | (161) | $ | (161) | $ | (165) |
1 |
For explanations of items of note, refer to the "Non-GAAP Financial
Measures - Reconciliation of Adjusted to Reported Net Income" table in the "How We Performed" section of this document. |
Quarterly comparison - Q4 2015 vs. Q4 2014
Corporate segment's reported net loss for the quarter was $448 million,
compared with a reported net loss of $227 million in the fourth quarter
last year. Current quarter reported net loss includes restructuring
charges of $349 million pre-tax ($243 million after-tax) on a net
basis. For further details, refer to the "Significant Events in 2015"
in the "How We Performed" section of this document. Adjusted net loss
was $161 million, compared with an adjusted net loss of $165 million in
the fourth quarter last year. Adjusted net loss was slightly lower due
to lower net corporate expenses offset by Other items. Other items
included higher provisions for incurred but not identified credit
losses due to volume growth and refinements in allowance methodology in
the Canadian loan portfolio.
Quarterly comparison - Q4 2015 vs. Q3 2015
Corporate segment's reported net loss for the quarter was $448 million,
compared with a reported net loss of $204 million in the prior quarter.
Current quarter reported net loss includes restructuring charges of
$349 million pre-tax ($243 million after-tax) on a net basis. For
further details, refer to the "Significant Events in 2015" in the "How
We Performed" section of this document. Adjusted net loss was $161
million, flat to prior quarter.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited) | ||||||
INTERIM CONSOLIDATED BALANCE SHEET (unaudited) | ||||||
(millions of Canadian dollars, except as noted) | As at | |||||
October 31 | October 31 | |||||
2015 | 2014 | |||||
ASSETS | ||||||
Cash and due from banks | $ | 3,154 | $ | 2,781 | ||
Interest-bearing deposits with banks | 42,483 | 43,773 | ||||
45,637 | 46,554 | |||||
Trading loans, securities, and other | 95,157 | 101,173 | ||||
Derivatives | 69,438 | 55,796 | ||||
Financial assets designated at fair value through profit or loss | 4,378 | 4,745 | ||||
Available-for-sale securities | 88,782 | 63,008 | ||||
257,755 | 224,722 | |||||
Held-to-maturity securities | 74,450 | 56,977 | ||||
Securities purchased under reverse repurchase agreements | 97,364 | 82,556 | ||||
Loans | ||||||
Residential mortgages | 212,373 | 198,912 | ||||
Consumer instalment and other personal | 135,471 | 123,411 | ||||
Credit card | 30,215 | 25,570 | ||||
Business and government | 167,529 | 131,349 | ||||
Debt securities classified as loans | 2,187 | 2,695 | ||||
547,775 | 481,937 | |||||
Allowance for loan losses | (3,434) | (3,028) | ||||
Loans, net of allowance for loan losses | 544,341 | 478,909 | ||||
Other | ||||||
Customers' liability under acceptances | 16,646 | 13,080 | ||||
Investment in TD Ameritrade | 6,683 | 5,569 | ||||
Goodwill | 16,337 | 14,233 | ||||
Other intangibles | 2,671 | 2,680 | ||||
Land, buildings, equipment, and other depreciable assets | 5,314 | 4,930 | ||||
Deferred tax assets | 1,931 | 2,008 | ||||
Amounts receivable from brokers, dealers, and clients | 21,996 | 17,130 | ||||
Other assets | 13,248 | 11,163 | ||||
84,826 | 70,793 | |||||
Total assets | $ | 1,104,373 | $ | 960,511 | ||
LIABILITIES | ||||||
Trading deposits | $ | 74,759 | $ | 59,334 | ||
Derivatives | 57,218 | 51,209 | ||||
Securitization liabilities at fair value | 10,986 | 11,198 | ||||
Other financial liabilities designated at fair value through profit or loss | 1,415 | 3,250 | ||||
144,378 | 124,991 | |||||
Deposits | ||||||
Personal | 395,818 | 343,240 | ||||
Banks | 17,080 | 15,771 | ||||
Business and government | 282,678 | 241,705 | ||||
695,576 | 600,716 | |||||
Other | ||||||
Acceptances | 16,646 | 13,080 | ||||
Obligations related to securities sold short | 38,803 | 39,465 | ||||
Obligations related to securities sold under repurchase agreements | 67,156 | 53,112 | ||||
Securitization liabilities at amortized cost | 22,743 | 24,960 | ||||
Amounts payable to brokers, dealers, and clients | 22,664 | 18,195 | ||||
Insurance-related liabilities | 6,519 | 6,079 | ||||
Other liabilities | 14,223 | 15,897 | ||||
188,754 | 170,788 | |||||
Subordinated notes and debentures | 8,637 | 7,785 | ||||
Total liabilities | 1,037,345 | 904,280 | ||||
EQUITY | ||||||
Common shares (millions of shares issued and outstanding: Oct. 31, 2015 - 1,856.2, Oct. 31, 2014 - 1,846.2) | 20,294 | 19,811 | ||||
Preferred shares (millions of shares issued and outstanding: Oct. 31, 2015 - 108.0, Oct. 31, 2014 - 88.0) | 2,700 | 2,200 | ||||
Treasury shares - common (millions of shares held: Oct. 31, 2015 - (1.1), Oct. 31, 2014 - (1.6)) | (49) | (54) | ||||
Treasury shares - preferred (millions of shares held: Oct. 31, 2015 - (0.1), Oct. 31, 2014 - (0.04)) | (3) | (1) | ||||
Contributed surplus | 214 | 205 | ||||
Retained earnings | 32,053 | 27,585 | ||||
Accumulated other comprehensive income (loss) | 10,209 | 4,936 | ||||
65,418 | 54,682 | |||||
Non-controlling interests in subsidiaries | 1,610 | 1,549 | ||||
Total equity | 67,028 | 56,231 | ||||
Total liabilities and equity | $ | 1,104,373 | $ | 960,511 |
Certain comparative amounts have been restated, where applicable, as a result of the implementation of the 2015 IFRS Standards and Amendments.
INTERIM CONSOLIDATED STATEMENT OF INCOME (unaudited) | |||||||||||
(millions of Canadian dollars, except as noted) | |||||||||||
For the three months ended | For the twelve months ended | ||||||||||
October 31 | October 31 | October 31 | October 31 | ||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Interest income | |||||||||||
Loans | $ | 5,159 | $ | 4,983 | $ | 20,319 | $ | 19,716 | |||
Securities | |||||||||||
Interest | 880 | 740 | 3,155 | 2,913 | |||||||
Dividends | 256 | 312 | 1,214 | 1,173 | |||||||
Deposits with banks | 34 | 29 | 142 | 126 | |||||||
6,329 | 6,064 | 24,830 | 23,928 | ||||||||
Interest expense | |||||||||||
Deposits | 1,023 | 1,109 | 4,242 | 4,313 | |||||||
Securitization liabilities | 130 | 184 | 593 | 777 | |||||||
Subordinated notes and debentures | 103 | 100 | 390 | 412 | |||||||
Other | 186 | 214 | 881 | 842 | |||||||
1,442 | 1,607 | 6,106 | 6,344 | ||||||||
Net interest income | 4,887 | 4,457 | 18,724 | 17,584 | |||||||
Non-interest income | |||||||||||
Investment and securities services | 908 | 875 | 3,683 | 3,346 | |||||||
Credit fees | 254 | 212 | 925 | 845 | |||||||
Net securities gain (loss) | 11 | 20 | 79 | 173 | |||||||
Trading income (loss) | (99) | (119) | (223) | (349) | |||||||
Service charges | 638 | 558 | 2,376 | 2,152 | |||||||
Card services | 480 | 396 | 1,766 | 1,552 | |||||||
Insurance revenue | 977 | 1,001 | 3,758 | 3,883 | |||||||
Trust fees | 36 | 39 | 150 | 150 | |||||||
Other income (loss) | (45) | 13 | 188 | 625 | |||||||
3,160 | 2,995 | 12,702 | 12,377 | ||||||||
Total revenue | 8,047 | 7,452 | 31,426 | 29,961 | |||||||
Provision for credit losses | 509 | 371 | 1,683 | 1,557 | |||||||
Insurance claims and related expenses | 637 | 720 | 2,500 | 2,833 | |||||||
Non-interest expenses | |||||||||||
Salaries and employee benefits | 2,230 | 2,142 | 9,043 | 8,451 | |||||||
Occupancy, including depreciation | 447 | 399 | 1,719 | 1,549 | |||||||
Equipment, including depreciation | 234 | 221 | 892 | 810 | |||||||
Amortization of other intangibles | 171 | 168 | 662 | 598 | |||||||
Marketing and business development | 198 | 217 | 728 | 756 | |||||||
Restructuring charges | 349 | 29 | 686 | 29 | |||||||
Brokerage-related fees | 77 | 79 | 324 | 321 | |||||||
Professional and advisory services | 305 | 313 | 1,032 | 991 | |||||||
Communications | 69 | 73 | 273 | 283 | |||||||
Other | 831 | 690 | 2,714 | 2,708 | |||||||
4,911 | 4,331 | 18,073 | 16,496 | ||||||||
Income before income taxes and equity in net income of an investment in associate | 1,990 | 2,030 | 9,170 | 9,075 | |||||||
Provision for (recovery of) income taxes | 259 | 370 | 1,523 | 1,512 | |||||||
Equity in net income of an investment in associate, net of income taxes | 108 | 86 | 377 | 320 | |||||||
Net income | 1,839 | 1,746 | 8,024 | 7,883 | |||||||
Preferred dividends | 26 | 32 | 99 | 143 | |||||||
Net income available to common shareholders and non-controlling interests | |||||||||||
in subsidiaries | $ | 1,813 | $ | 1,714 | $ | 7,925 | $ | 7,740 | |||
Attributable to: | |||||||||||
Non-controlling interests in subsidiaries | $ | 29 | $ | 27 | $ | 112 | $ | 107 | |||
Common shareholders | 1,784 | 1,687 | 7,813 | 7,633 | |||||||
Weighted-average number of common shares outstanding (millions) | |||||||||||
Basic | 1,853.1 | 1,842.0 | 1,849.2 | 1,839.1 | |||||||
Diluted | 1,857.2 | 1,848.2 | 1,854.1 | 1,845.3 | |||||||
Earnings per share (dollars) | |||||||||||
Basic | $ | 0.96 | $ | 0.92 | $ | 4.22 | $ | 4.15 | |||
Diluted | 0.96 | 0.91 | 4.21 | 4.14 | |||||||
Dividends per share (dollars) | 0.51 | 0.47 | 2.00 | 1.84 |
Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited) | |||||||||||
(millions of Canadian dollars) | |||||||||||
For the three months ended | For the twelve months ended | ||||||||||
October 31 | October 31 | October 31 | October 31 | ||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Net income | $ | 1,839 | $ | 1,746 | $ | 8,024 | $ | 7,883 | |||
Other comprehensive income (loss) (OCI), net of income taxes | |||||||||||
Items that will be subsequently reclassified to net income | |||||||||||
Change in unrealized gains (losses) on available-for-sale securities1 | (384) | (26) | (464) | 69 | |||||||
Reclassification to earnings of net losses (gains) in respect of available-for-sale securities2 | (40) | (22) | (93) | (163) | |||||||
Net change in unrealized foreign currency translation gains (losses) on investments in | |||||||||||
foreign operations | (55) | 1,568 | 8,090 | 3,697 | |||||||
Reclassification to earnings of net losses (gains) on investments in foreign operations3 | - | - | - | (13) | |||||||
Net foreign currency translation gains (losses) from hedging activities4 | 36 | (532) | (2,764) | (1,390) | |||||||
Reclassification to earnings of net losses (gains) on hedges of investments in foreign | |||||||||||
operations5 | - | - | - | 13 | |||||||
Change in net gains (losses) on derivatives designated as cash flow hedges6 | (65) | 1,355 | 4,805 | 2,439 | |||||||
Reclassification to earnings of net losses (gains) on cash flow hedges7 | 240 | (1,241) | (4,301) | (2,875) | |||||||
Items that will not be subsequently reclassified to net income | |||||||||||
Actuarial gains (losses) on employee benefit plans8 | 450 | (206) | 400 | (458) | |||||||
182 | 896 | 5,673 | 1,319 | ||||||||
Comprehensive income (loss) for the period | $ | 2,021 | $ | 2,642 | $ | 13,697 | $ | 9,202 | |||
Attributable to: | |||||||||||
Preferred shareholders | $ | 26 | $ | 32 | $ | 99 | $ | 143 | |||
Common shareholders | 1,966 | 2,583 | 13,486 | 8,952 | |||||||
Non-controlling interests in subsidiaries | 29 | 27 | 112 | 107 |
1 |
Net of income tax recovery of $214 million for the three months ended
October 31, 2015 (three months ended October 31, 2014 - net of income
tax provision of $9 million). Net of income tax recovery of $210 million for the twelve months ended October 31, 2015 (twelve months ended October 31, 2014 - net of income tax provision of $67 million). |
2 |
Net of income tax provision of $13 million for the three months ended
October 31, 2015 (three months ended October 31, 2014 - net of income
tax provision of $15 million). Net of income tax provision of $78 million for the twelve months ended October 31, 2015 (twelve months ended October 31, 2014 - net of income tax provision of $81 million). |
3 |
Net of income tax provision of nil for the three months ended October
31, 2015 (three months ended October 31, 2014 - income tax provision of
nil). Net of income tax provision of nil for the twelve months ended October 31, 2015 (twelve months ended October 31, 2014 - income tax provision of nil). |
4 |
Net of income tax provision of $10 million for the three months ended
October 31, 2015 (three months ended October 31, 2014 - income tax
recovery of $185 million). Net of income tax recovery of $985 million for the twelve months ended October 31, 2015 (twelve months ended October 31, 2014 - income tax recovery of $488 million). |
5 |
Net of income tax provision of nil for the three months ended October
31, 2015 (three months ended October 31, 2014 - income tax provision of
nil). Net of income tax provision of nil for the twelve months ended October 31, 2015 (twelve months ended October 31, 2014 - income tax recovery of $4 million). |
6 |
Net of income tax recovery of $44 million for the three months ended
October 31, 2015 (three months ended October 31, 2014 - income tax
provision of $764 million). Net of income tax provision of $2,926 million for the twelve months ended October 31, 2015 (twelve months ended October 31, 2014 - net of income tax provision of $1,394 million). |
7 |
Net of income tax recovery of $146 million for the three months ended
October 31, 2015 (three months ended October 31, 2014 - net of income
tax provision of $687 million). Net of income tax provision of $2,744 million for the twelve months ended October 31, 2015 (twelve months ended October 31, 2014 - net of income tax provision of $1,617 million). |
8 |
Net of income tax provision of $169 million for the three months ended
October 31, 2015 (three months ended October 31, 2014 - net of income
tax recovery of $121 million). Net of income tax provision of $147 million for the twelve months ended October 31, 2015 (twelve months ended October 31, 2014 - net of income tax recovery of $210 million). |
Certain comparative amounts have been reclassified to conform with the presentation adopted in the current year.
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (unaudited) | |||||||||||
(millions of Canadian dollars) | |||||||||||
For the three months ended | For the twelve months ended | ||||||||||
October 31 | October 31 | October 31 | October 31 | ||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Common shares | |||||||||||
Balance at beginning of period | $ | 20,180 | $ | 19,705 | $ | 19,811 | $ | 19,316 | |||
Proceeds from shares issued on exercise of stock options | 32 | 24 | 128 | 199 | |||||||
Shares issued as a result of dividend reinvestment plan | 82 | 82 | 355 | 339 | |||||||
Purchase of shares for cancellation | - | - | - | (43) | |||||||
Balance at end of period | 20,294 | 19,811 | 20,294 | 19,811 | |||||||
Preferred shares | |||||||||||
Balance at beginning of period | 2,700 | 2,625 | 2,200 | 3,395 | |||||||
Issue of shares | - | - | 1,200 | 1,000 | |||||||
Redemption of shares | - | (425) | (700) | (2,195) | |||||||
Balance at end of period | 2,700 | 2,200 | 2,700 | 2,200 | |||||||
Treasury shares - common | |||||||||||
Balance at beginning of period | (17) | (92) | (54) | (145) | |||||||
Purchase of shares | (1,146) | (1,122) | (5,269) | (4,197) | |||||||
Sale of shares | 1,114 | 1,160 | 5,274 | 4,288 | |||||||
Balance at end of period | (49) | (54) | (49) | (54) | |||||||
Treasury shares - preferred | |||||||||||
Balance at beginning of period | (4) | (2) | (1) | (2) | |||||||
Purchase of shares | (9) | (43) | (244) | (154) | |||||||
Sale of shares | 10 | 44 | 242 | 155 | |||||||
Balance at end of period | (3) | (1) | (3) | (1) | |||||||
Contributed surplus | |||||||||||
Balance at beginning of period | 226 | 184 | 205 | 170 | |||||||
Net premium (discount) on sale of treasury shares | (4) | 19 | 25 | 48 | |||||||
Stock options | (1) | 3 | - | (5) | |||||||
Other | (7) | (1) | (16) | (8) | |||||||
Balance at end of period | 214 | 205 | 214 | 205 | |||||||
Retained earnings | |||||||||||
Balance at beginning of period | 30,764 | 26,970 | 27,585 | 23,982 | |||||||
Net income attributable to shareholders | 1,810 | 1,719 | 7,912 | 7,776 | |||||||
Common dividends | (945) | (866) | (3,700) | (3,384) | |||||||
Preferred dividends | (26) | (32) | (99) | (143) | |||||||
Share issue expenses and others | - | - | (28) | (11) | |||||||
Net premium on repurchase of common shares and redemption of preferred shares | - | - | (17) | (177) | |||||||
Actuarial gains (losses) on employee benefit plans | 450 | (206) | 400 | (458) | |||||||
Balance at end of period | 32,053 | 27,585 | 32,053 | 27,585 | |||||||
Accumulated other comprehensive income (loss) | |||||||||||
Net unrealized gain (loss) on available-for-sale securities: | |||||||||||
Balance at beginning of period | 505 | 686 | 638 | 732 | |||||||
Other comprehensive income (loss) | (424) | (48) | (557) | (94) | |||||||
Balance at end of period | 81 | 638 | 81 | 638 | |||||||
Net unrealized foreign currency translation gain (loss) on investments in foreign | |||||||||||
operations, net of hedging activities: | |||||||||||
Balance at beginning of period | 8,374 | 1,993 | 3,029 | 722 | |||||||
Other comprehensive income (loss) | (19) | 1,036 | 5,326 | 2,307 | |||||||
Balance at end of period | 8,355 | 3,029 | 8,355 | 3,029 | |||||||
Net gain (loss) on derivatives designated as cash flow hedges: | |||||||||||
Balance at beginning of period | 1,598 | 1,155 | 1,269 | 1,705 | |||||||
Other comprehensive income (loss) | 175 | 114 | 504 | (436) | |||||||
Balance at end of period | 1,773 | 1,269 | 1,773 | 1,269 | |||||||
Total | 10,209 | 4,936 | 10,209 | 4,936 | |||||||
Non-controlling interests in subsidiaries | |||||||||||
Balance at beginning of period | 1,639 | 1,531 | 1,549 | 1,508 | |||||||
Net income attributable to non-controlling interests in subsidiaries | 29 | 27 | 112 | 107 | |||||||
Other | (58) | (9) | (51) | (66) | |||||||
Balance at end of period | 1,610 | 1,549 | 1,610 | 1,549 | |||||||
Total equity | $ | 67,028 | $ | 56,231 | $ | 67,028 | $ | 56,231 |
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) | |||||||||||
(millions of Canadian dollars) | |||||||||||
For the three months ended | For the twelve months ended | ||||||||||
October 31 | October 31 | October 31 | October 31 | ||||||||
2015 | 2014 | 2015 | 2014 | ||||||||
Cash flows from (used in) operating activities | |||||||||||
Net income before income taxes | $ | 2,098 | $ | 2,116 | $ | 9,547 | $ | 9,395 | |||
Adjustments to determine net cash flows from (used in) operating activities | |||||||||||
Provision for credit losses | 509 | 371 | 1,683 | 1,557 | |||||||
Depreciation | 149 | 143 | 588 | 533 | |||||||
Amortization of other intangibles | 171 | 168 | 662 | 598 | |||||||
Net securities losses (gains) | (11) | (20) | (79) | (173) | |||||||
Equity in net income of an investment in associate | (108) | (86) | (377) | (320) | |||||||
Deferred taxes | (92) | (140) | (352) | 31 | |||||||
Changes in operating assets and liabilities | |||||||||||
Interest receivable and payable | (99) | 32 | (294) | (204) | |||||||
Securities sold short | 4,467 | 452 | (662) | (2,364) | |||||||
Trading loans and securities | 13,315 | 576 | 6,016 | 767 | |||||||
Loans net of securitization and sales | (13,634) | (13,360) | (63,947) | (33,717) | |||||||
Deposits | 3,630 | 24,664 | 108,446 | 72,059 | |||||||
Derivatives | (284) | (3,483) | (7,633) | (4,597) | |||||||
Financial assets and liabilities designated at fair value through profit or loss | (367) | 281 | 371 | 1,783 | |||||||
Securitization liabilities | (113) | (2,702) | (2,429) | (11,394) | |||||||
Other | 1,422 | (4,001) | (16,267) | (8,041) | |||||||
Net cash from (used in) operating activities | 11,053 | 5,011 | 35,273 | 25,913 | |||||||
Cash flows from (used in) financing activities | |||||||||||
Change in securities sold under repurchase agreements | (6,871) | (2,832) | 14,044 | 13,494 | |||||||
Issue of subordinated notes and debentures | 1,000 | - | 2,500 | - | |||||||
Redemption of subordinated notes and debentures | (800) | (150) | (1,675) | (150) | |||||||
Common shares issued | 27 | 21 | 108 | 168 | |||||||
Preferred shares issued | - | - | 1,184 | 989 | |||||||
Repurchase of common shares | - | - | - | (220) | |||||||
Redemption of preferred shares | - | (425) | (717) | (2,195) | |||||||
Sale of treasury shares | 1,120 | 1,223 | 5,541 | 4,491 | |||||||
Purchase of treasury shares | (1,155) | (1,165) | (5,513) | (4,351) | |||||||
Dividends paid | (889) | (816) | (3,444) | (3,188) | |||||||
Distributions to non-controlling interests in subsidiaries | (29) | (27) | (112) | (107) | |||||||
Net cash from (used in) financing activities | (7,597) | (4,171) | 11,916 | 8,931 | |||||||
Cash flows from (used in) investing activities | |||||||||||
Interest-bearing deposits with banks | 6,598 | (7,065) | 1,290 | (15,190) | |||||||
Activities in available-for-sale securities | |||||||||||
Purchases | (19,964) | (7,067) | (58,775) | (38,887) | |||||||
Proceeds from maturities | 5,779 | 6,729 | 27,055 | 30,032 | |||||||
Proceeds from sales | 38 | 164 | 6,631 | 6,403 | |||||||
Activities in held-to-maturity securities | |||||||||||
Purchases | (754) | (898) | (15,120) | (9,258) | |||||||
Proceeds from maturities | 2,457 | 1,161 | 9,688 | 6,542 | |||||||
Activities in debt securities classified as loans | |||||||||||
Purchases | - | (7) | (23) | (37) | |||||||
Proceeds from maturities | 119 | 137 | 875 | 1,263 | |||||||
Proceeds from sales | - | - | - | 10 | |||||||
Net purchases of land, buildings, equipment, and other depreciable assets | (159) | (331) | (972) | (828) | |||||||
Changes in securities purchased (sold) under reverse repurchase agreements | 4,961 | 5,959 | (14,808) | (13,069) | |||||||
Net cash acquired from (paid for) divestitures, acquisitions, and the sale of TD Ameritrade shares | (2,918) | - | (2,918) | (2,768) | |||||||
Net cash from (used in) investing activities | (3,843) | (1,218) | (47,077) | (35,787) | |||||||
Effect of exchange rate changes on cash and due from banks | (1) | 60 | 261 | 143 | |||||||
Net increase (decrease) in cash and due from banks | (388) | (318) | 373 | (800) | |||||||
Cash and due from banks at beginning of period | 3,542 | 3,099 | 2,781 | 3,581 | |||||||
Cash and due from banks at end of period | $ | 3,154 | $ | 2,781 | $ | 3,154 | $ | 2,781 | |||
Supplementary disclosure of cash flow information | |||||||||||
Amount of income taxes paid (refunded) during the period | $ | 125 | $ | 407 | $ | 554 | $ | 1,241 | |||
Amount of interest paid during the period | 1,377 | 1,488 | 6,167 | 6,478 | |||||||
Amount of interest received during the period | 6,009 | 5,665 | 23,483 | 22,685 | |||||||
Amount of dividends received during the period | 270 | 301 | 1,216 | 1,179 |
Certain comparative amounts have been restated, where applicable, as a result of the implementation of the 2015 IFRS Standards and Amendments.
Appendix A - Segmented Information
For management reporting purposes, the Bank reports its results under
three key business segments: Canadian Retail, which includes the
results of the Canadian personal and commercial banking businesses,
Canadian credit cards, TD Auto Finance Canada and Canadian wealth and
insurance businesses; U.S. Retail, which includes the results of the
U.S. personal and commercial banking businesses, U.S. credit cards, TD
Auto Finance U.S., U.S. wealth business and the Bank's investment in TD
Ameritrade; and Wholesale Banking. The Bank's other activities are
grouped into the Corporate segment.
Results for these segments for the three and twelve months ended October 31 are presented in the following tables.
Results by Business Segment | |||||||||||||||||||||||||||||||
(millions of Canadian dollars) | |||||||||||||||||||||||||||||||
For the three months ended | |||||||||||||||||||||||||||||||
Canadian Retail | U.S. Retail | Wholesale Banking | Corporate | Total | |||||||||||||||||||||||||||
Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Net interest income (loss) | $ | 2,497 | $ | 2,435 | $ | 1,905 | $ | 1,515 | $ | 550 | $ | 537 | $ | (65) | $ | (30) | $ | 4,887 | $ | 4,457 | |||||||||||
Non-interest income (loss) | 2,500 | 2,485 | 600 | 532 | 116 | 67 | (56) | (89) | 3,160 | 2,995 | |||||||||||||||||||||
Total revenue | 4,997 | 4,920 | 2,505 | 2,047 | 666 | 604 | (121) | (119) | 8,047 | 7,452 | |||||||||||||||||||||
Provision for (reversal of) credit losses | 221 | 250 | 241 | 139 | 14 | (1) | 33 | (17) | 509 | 371 | |||||||||||||||||||||
Insurance claims and related expenses | 637 | 720 | - | - | - | - | - | - | 637 | 720 | |||||||||||||||||||||
Non-interest expenses | 2,143 | 2,224 | 1,730 | 1,381 | 390 | 381 | 648 | 345 | 4,911 | 4,331 | |||||||||||||||||||||
Income (loss) before income taxes | 1,996 | 1,726 | 534 | 527 | 262 | 224 | (802) | (447) | 1,990 | 2,030 | |||||||||||||||||||||
Provision for (recovery of) income taxes | 500 | 422 | 48 | 101 | 66 | 64 | (355) | (217) | 259 | 370 | |||||||||||||||||||||
Equity in net income of an investment in | |||||||||||||||||||||||||||||||
associate, net of income taxes | - | - | 109 | 83 | - | - | (1) | 3 | 108 | 86 | |||||||||||||||||||||
Net income (loss) | $ | 1,496 | $ | 1,304 | $ | 595 | $ | 509 | $ | 196 | $ | 160 | $ | (448) | $ | (227) | $ | 1,839 | $ | 1,746 | |||||||||||
As at | |||||||||||||||||||||||||||||||
Total assets (billions of Canadian dollars) | $ | 360.1 | $ | 334.6 | $ | 347.3 | $ | 277.1 | $ | 343.5 | $ | 317.6 | $ | 53.5 | $ | 31.2 | $ | 1,104.4 | $ | 960.5 | |||||||||||
Results by Business Segment | |||||||||||||||||||||||||||||||
(millions of Canadian dollars) | |||||||||||||||||||||||||||||||
For the twelve months ended | |||||||||||||||||||||||||||||||
Canadian Retail | U.S. Retail | Wholesale Banking | Corporate | Total | |||||||||||||||||||||||||||
Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | Oct. 31 | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
Net interest income (loss) | $ | 9,781 | $ | 9,538 | $ | 7,011 | $ | 6,000 | $ | 2,295 | $ | 2,210 | $ | (363) | $ | (164) | $ | 18,724 | $ | 17,584 | |||||||||||
Non-interest income (loss) | 9,904 | 9,623 | 2,414 | 2,245 | 631 | 470 | (247) | 39 | 12,702 | 12,377 | |||||||||||||||||||||
Total revenue | 19,685 | 19,161 | 9,425 | 8,245 | 2,926 | 2,680 | (610) | (125) | 31,426 | 29,961 | |||||||||||||||||||||
Provision for (reversal of) credit losses | 887 | 946 | 749 | 676 | 18 | 11 | 29 | (76) | 1,683 | 1,557 | |||||||||||||||||||||
Insurance claims and related expenses | 2,500 | 2,833 | - | - | - | - | - | - | 2,500 | 2,833 | |||||||||||||||||||||
Non-interest expenses | 8,407 | 8,438 | 6,170 | 5,352 | 1,701 | 1,589 | 1,795 | 1,117 | 18,073 | 16,496 | |||||||||||||||||||||
Income (loss) before income taxes | 7,891 | 6,944 | 2,506 | 2,217 | 1,207 | 1,080 | (2,434) | (1,166) | 9,170 | 9,075 | |||||||||||||||||||||
Provision for (recovery of) income taxes | 1,953 | 1,710 | 394 | 412 | 334 | 267 | (1,158) | (877) | 1,523 | 1,512 | |||||||||||||||||||||
Equity in net income of an investment in | |||||||||||||||||||||||||||||||
associate, net of income taxes | - | - | 376 | 305 | - | - | 1 | 15 | 377 | 320 | |||||||||||||||||||||
Net income (loss) | $ | 5,938 | $ | 5,234 | $ | 2,488 | $ | 2,110 | $ | 873 | $ | 813 | $ | (1,275) | $ | (274) | $ | 8,024 | $ | 7,883 |
Certain comparative amounts have been restated, where applicable, as a result of the implementation of the 2015 IFRS Standards and Amendments.
SHAREHOLDER AND INVESTOR INFORMATION
Shareholder Services
If you: | And your inquiry relates to: | Please contact: |
Are a registered shareholder (your name appears on your TD share certificate) |
Missing dividends, lost share certificates, estate questions, address changes to the share register, dividend bank account changes, the dividend reinvestment plan, eliminating duplicate mailings of shareholder materials or stopping (and resuming) receiving annual and quarterly reports |
Transfer Agent: CST Trust Company P.O. Box 700, Station B Montréal, Québec H3B 3K3 1-800-387-0825 (Canada and U.S. only) or 416-682-3860 Facsimile: 1-888-249-6189 inquiries@canstockta.com or www.canstockta.com |
Hold your TD shares through the Direct Registration System in the United States |
Missing dividends, lost share certificates, estate questions, address changes to the share register, eliminating duplicate mailings of shareholder materials or stopping (and resuming) receiving annual and quarterly reports |
Co-Transfer Agent and Registrar Computershare P.O. Box 30170 College Station, TX 77842-3170 or Computershare 211 Quality Circle, Suite 210 College Station, TX 77845 1-866-233-4836 TDD for hearing impaired: 1-800-231-5469 Shareholders outside of U.S.: 201-680-6578 TDD shareholders outside of U.S.: 201-680-6610 www.computershare.com |
Beneficially own TD shares that are held in the name of an intermediary, such as a bank, a trust company, a securities broker or other nominee |
Your TD shares, including questions regarding the dividend reinvestment plan and mailings of shareholder materials |
Your intermediary |
For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email tdshinfo@td.com. Please note that by leaving us an e-mail or voicemail message, you are providing your consent for us to forward your inquiry to the appropriate party for response.
Annual Report on Form 40-F (U.S.)
A copy of the Bank's annual report on Form 40-F for fiscal 2015 will be filed with the Securities and Exchange Commission later today and will be available at http://www.td.com. You may obtain a printed copy of the Bank's annual report on Form 40-F for fiscal 2015 free of charge upon request to TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or e-mail tdshinfo@td.com.
General Information
Contact Corporate & Public Affairs: 416-982-8578
Products and services: Contact TD Canada Trust, 24 hours a day, seven
days a week: 1-866-567-8888
French: 1-866-233-2323
Cantonese/Mandarin: 1-800-328-3698
Telephone device for the hearing impaired (TTY): 1-800-361-1180
Website: www.td.com
Email: customer.service@td.com
Access to Quarterly Results Materials
Interested investors, the media and others may view this fourth quarter earnings news release, results slides, supplementary financial information, and the 2015 Consolidated Financial Statements and the 2015 MD&A documents on the TD website at www.td.com/investor/.
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on December 3, 2015. The call will be available live via TD's website at 3 p.m. ET. The call and audio webcast will feature presentations by TD executives on the Bank's financial results for the fourth quarter, discussions of related disclosures, and will be followed by a question-and-answer period with analysts. The presentation material referenced during the call will be available on the TD website at www.td.com/investor/qr_2015.jsp on December 3, 2015, by approximately 12 p.m. ET. A listen-only telephone line is available at 416-204-9269 or 1-800-499-4035 (toll free).
The audio webcast and presentations will be archived at www.td.com/investor/qr_2015.jsp. Replay of the teleconference will be available from 6 p.m. ET on December 3, 2015, until 6 p.m. ET on December 31, 2015, by calling 647-436-0148 or 1-888-203-1112 (toll free). The passcode is 5662304.
Annual Meeting
Thursday, March 31, 2016
Fairmont The Queen Elizabeth
Montréal, Québec
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Group ("TD" or the "Bank"). TD is the sixth largest bank in
North America by branches and serves more than 24 million customers in
three key businesses operating in a number of locations in financial
centres around the globe: Canadian Retail, including TD Canada Trust,
TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD
Insurance; U.S. Retail, including TD Bank, America's Most Convenient
Bank®, TD Auto Finance U.S., TD Wealth (U.S.), and an investment in TD
Ameritrade; and Wholesale Banking, including TD Securities. TD also
ranks among the world's leading online financial services firms, with
approximately 10.2 million active online and mobile customers. TD had
CDN$1.1 trillion in assets on October 31, 2015. The Toronto-Dominion
Bank trades under the symbol "TD" on the Toronto and New York Stock
Exchanges.
SOURCE TD Bank Group
![](http://rt.newswire.ca/rt.gif?NewsItemId=C9462&Transmission_Id=201512030630CANADANWCANADAPR_C9462&DateId=20151203)