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This quarterly earnings news release should be read in conjunction with the Bank's unaudited fourth quarter 2018 consolidated financial results for the year ended October 31, 2018, included in this Earnings News Release and the audited 2018 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 November 28, 2018. 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 Bank'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).

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 2018 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 $1.58, compared with $1.42.
  • Adjusted diluted earnings per share were $1.63, compared with $1.36.
  • Reported net income was $2,960 million, compared with $2,712 million.
  • Adjusted net income was $3,048 million, compared with $2,603 million.

FULL YEAR FINANCIAL HIGHLIGHTS, compared with last year:

  • Reported diluted earnings per share were $6.01, compared with $5.50.
  • Adjusted diluted earnings per share were $6.47, compared with $5.54.
  • Reported net income was $11,334 million, compared with $10,517 million.
  • Adjusted net income was $12,183 million, compared with $10,587 million.

FOURTH QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The fourth quarter reported earnings figures included the following items of note:

  • Amortization of intangibles of $76 million ($63 million after tax or 4 cents per share), compared with $78 million ($59 million after tax or 3 cents per share) in the fourth quarter last year.
  • Charges associated with the Scottrade transaction of $25 million ($25 million after tax or 1 cent per share), compared with $46 million ($36 million after tax or 2 cents per share).

TORONTO, Nov. 29, 2018 /CNW/ - TD Bank Group ("TD" or the "Bank") today announced its financial results for the fourth quarter ended October 31, 2018. Fourth quarter reported earnings were $3 billion, up 9% on a reported basis and up 17% on an adjusted basis, compared with the same quarter last year.

"I am extremely pleased with our earnings performance in the fourth quarter, which capped a very strong year," said Bharat Masrani, Group President and Chief Executive Officer, TD Bank Group. "2018 represented a year of tremendous progress as we advanced key strategic priorities and continued to innovate to strengthen our competitive advantage."

The Bank also announced its intention to amend its normal course issuer bid for up to an additional 20 million of its common shares, which is subject to regulatory approval.

Canadian Retail
Canadian Retail net income for the quarter was $1,741 million, an increase of 5%, compared with the fourth quarter last year. Canadian Retail continued to perform well in a competitive landscape achieving strong volumes and market share gains in Real Estate Secured Lending, and maintaining its market-leading position in credit cards, personal deposits, and direct investing1.

U.S. Retail
U.S. Retail reported net income was $1,114 million (US$855 million) and adjusted net income was $1,139 million (US$874 million), an increase of 44% (38% in U.S. dollars) on a reported basis and 40% (34% in U.S. dollars) on an adjusted basis, compared with the same quarter last year.

The U.S. Retail Bank, which excludes the Bank's investment in TD Ameritrade, reported net income of $886 million (US$680 million), up 32% (26% in U.S. dollars) on a reported basis and up 29% (23% in U.S. dollars) on an adjusted basis, from the same period last year. The U.S. Retail Bank continued to invest in enhancing its capabilities, products, and services, while achieving peer-leading growth in loan and deposit volumes. Earnings also reflect higher margins driven by a favourable rate environment and benefits from U.S. tax reform.

TD Ameritrade contributed $228 million (US$175 million) in reported earnings to the segment and $253 million (US$194 million) in adjusted earnings.

Wholesale
Wholesale Banking net income was $286 million this quarter, an increase of 24% compared with the fourth quarter last year, reflecting higher trading-related revenue, and fee and advisory revenue, partially offset by higher provisions for credit losses and expenses. The Wholesale Bank continues to invest in the global expansion of its U.S. dollar business.
















1

Market share ranking is based on most current data available from OSFI for personal deposits and loans as at August 2018, from The Nilson Report for credit cards as at December 2017, and from Strategic Insight for Direct Investing asset, trades, and revenue metrics as at June 2018.

Capital
TD's Common Equity Tier 1 Capital ratio on a Basel III fully phased-in basis was 12%.

Innovation
"TD is helping our customers achieve their financial goals by delivering highly personalized and connected experiences across our branches and stores, contact centres, and digital channels," said Masrani. "We are providing the advice and services our customers need, when, where and how they choose to help them feel even more confident about their future."

Conclusion
"We enter 2019 from a position of strength. While there are a number of macro-economic and geopolitical unknowns in the year ahead, the progress we made in 2018 gives me confidence in our future success. Our over 85,000 TD colleagues around the globe have delivered outstanding outcomes for our customers and our shareholders and I thank them for their passion and commitment in 2018," concluded Masrani.

The foregoing contains forward-looking statements. Please refer to the "Caution Regarding Forward-Looking Statements".

Caution Regarding Forward-Looking Statements

From time-to-time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media, and others. All such statements are made pursuant to the "safe harbour" provisions of, and are intended to be forward-looking statements under, applicable Canadian and U.S. securities legislation, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements made in this document, the Management's Discussion and Analysis ("2018 MD&A") in the Bank's 2018 Annual Report under the heading "Economic Summary and Outlook", for the Canadian Retail, U.S. Retail, and Wholesale Banking segments under headings "Business Outlook and Focus for 2019", and for the Corporate segment, "Focus for 2019", and in other statements regarding the Bank's objectives and priorities for 2019 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", "would", "should", "believe", "expect", "anticipate", "intend", "estimate", "plan", "goal", "target", "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, interest rate, and credit spreads), 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 long-term and shorter-term strategic priorities, including the successful completion of acquisitions and strategic plans; the ability of the Bank 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, capital guidelines and liquidity regulatory guidance, and the bank recapitalization "bail-in" regime; exposure related to significant litigation and regulatory matters; increased competition from incumbents and non-traditional competitors, including Fintech and big technology competitors; changes to the Bank's credit ratings; changes in currency and interest rates (including the possibility of negative 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 2018 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news releases (as applicable) related to any events or transactions or events discussed under the heading "Significant and Subsequent Events, and Pending Acquisitions" 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 2018 MD&A under the headings "Economic Summary and Outlook", for the Canadian Retail, U.S. Retail, and Wholesale Banking segments, "Business Outlook and Focus for 2019", and for the Corporate segment, "Focus for 2019", each as may be 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 HIGHLIGHTS
















(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




2018


2018


2017


2018


2017


Results of operations
















Total revenue – reported

$

10,122


$

9,885


$

9,270


$

38,834


$

36,149


Total revenue – adjusted1


10,122



9,885



9,066



38,923



35,946


Provision for credit losses2


670



561



578



2,480



2,216


Insurance claims and related expenses


684



627



615



2,444



2,246


Non-interest expenses – reported


5,352



5,117



4,828



20,137



19,366


Non-interest expenses – adjusted1


5,299



5,064



4,739



19,885



19,092


Net income – reported


2,960



3,105



2,712



11,334



10,517


Net income – adjusted1


3,048



3,127



2,603



12,183



10,587


Financial position (billions of dollars)
















Total loans net of allowance for loan losses

$

646.4


$

635.2


$

612.6


$

646.4


$

612.6


Total assets


1,334.9



1,292.5



1,279.0



1,334.9



1,279.0


Total deposits


851.4



838.6



832.8



851.4



832.8


Total equity


80.0



77.7



75.2



80.0



75.2


Total Common Equity Tier 1 Capital risk-weighted assets3


435.6



428.9



435.8



435.6



435.8


Financial ratios
















Return on common equity – reported


15.8

%


16.9

%


15.4

%


15.7

%


14.9

%

Return on common equity – adjusted4


16.3



17.1



14.7



16.9



15.0


Efficiency ratio – reported


52.9



51.8



52.1



51.9



53.6


Efficiency ratio – adjusted1


52.4



51.2



52.3



51.1



53.1


Provision for credit losses as a % of net average loans and

















acceptances5


0.41



0.35



0.39



0.39



0.37


Common share information – reported(Canadian dollars)
















Per share earnings

















Basic

$

1.58


$

1.65


$

1.42


$

6.02


$

5.51



Diluted


1.58



1.65



1.42



6.01



5.50


Dividends per share


0.67



0.67



0.60



2.61



2.35


Book value per share


40.50



39.34



37.76



40.50



37.76


Closing share price6


73.03



77.17



73.34



73.03



73.34


Shares outstanding (millions)

















Average basic


1,826.5



1,830.0



1,845.8



1,835.4



1,850.6



Average diluted


1,830.5



1,834.0



1,849.9



1,839.5



1,854.8



End of period


1,828.3



1,826.1



1,839.6



1,828.3



1,839.6


Market capitalization (billions of Canadian dollars)

$

133.5


$

140.9


$

134.9


$

133.5


$

134.9


Dividend yield7


3.5

%


3.5

%


3.5

%


3.5

%


3.6

%

Dividend payout ratio


42.3



40.4



42.1



43.3



42.6


Price-earnings ratio


12.2



13.2



13.3



12.2



13.3


Total shareholder return (1-year)8


3.1



24.3



24.8



3.1



24.8


Common share information – adjusted (Canadian dollars)1
















Per share earnings

















Basic

$

1.63


$

1.67


$

1.36


$

6.48


$

5.55



Diluted


1.63



1.66



1.36



6.47



5.54


Dividend payout ratio


41.1

%


40.1

%


43.9

%


40.2

%


42.3

%

Price-earnings ratio


11.3



12.4



13.2



11.3



13.2


Capital Ratios
















Common Equity Tier 1 Capital ratio3


12.0

%


11.7

%


10.7

%


12.0

%


10.7

%

Tier 1 Capital ratio3


13.7



13.3



12.3



13.7



12.3


Total Capital ratio3


16.2



15.4



14.9



16.2



14.9


Leverage ratio


4.2



4.1



3.9



4.2



3.9




1

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.

2

Effective November 1, 2017, amounts were prepared in accordance with IFRS 9, Financial Instruments (IFRS 9). Prior period comparatives were prepared in accordance with IAS 39. Financial Instruments: Recognition and Measurement (IAS 39) and have not been restated. Refer to the "How the Bank Reports" section of this document for an explanation and Note 4 and Note 8 of the 2018 Consolidated Financial Statements for further details.

3

Each capital ratio has its own risk-weighted assets (RWA) measure due to the Office of the Superintendent of Financial Institutions Canada (OSFI)-prescribed scalar for inclusion of the Credit Valuation Adjustment (CVA). For fiscal 2018, the scalars for inclusion of CVA for Common Equity Tier 1 (CET1), Tier 1, and Total Capital RWA are 80%, 83%, and 86%, respectively. For fiscal 2017, the scalars were 72%, 77%, and 81%, respectively.Prior to the second quarter of 2018, the RWA as it relates to the regulatory floor was calculated based on the Basel I risk weights which are the same for all capital ratios.

4

Adjusted return on common equity (ROE) is a non-GAAP financial measure. Refer to the "Return on Common Equity" section of this document for an explanation.

5

Excludes acquired credit-impaired (ACI) loans, debt securities classified as loans (DSCL) under IAS 39, and debt securities at amortized cost (DSAC) and debt securities at fair value through other comprehensive income (DSOCI) under IFRS 9.

6

Toronto Stock Exchange (TSX) closing market price.

7

Dividend yield is calculated as the dividend per common share divided by the daily average closing stock price in the relevant period. Dividend per common share is derived as follows: a) for the quarter – by annualizing the dividend per common share paid during the quarter, and b) for the full year – dividend per common share paid during the year.

8

Total shareholder return (TSR) is calculated based on share price movement and dividends reinvested over a trailing one-year period.

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 referred to as "adjusted" results to assess each of its businesses and to measure the Bank's overall performance. To arrive at adjusted results, the Bank removes "items of note", 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 in Table 3. As explained, adjusted results differ 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's U.S. strategic cards portfolio comprises of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and provisions for credit losses related to these portfolios in the Bank's Consolidated Statement of Income. At the segment level, the retailer program partners' share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners' net share) recorded in Non-interest expenses, resulting in no impact to Corporate reported Net income (loss). The Net income (loss) included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to TD under the agreements.

Effective November 1, 2017, the Bank adopted IFRS 9, which replaces the guidance in IAS 39. Refer to Note 2 and Note 4 of the 2018 Consolidated Financial Statements for a summary of the Bank's accounting policies as it relates to IFRS 9. Under IFRS 9, the current period provision for credit losses (PCL) for performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the respective segment. Under IAS 39 and prior to November 1, 2017, the PCL related to the collectively assessed allowance for incurred but not identified credit losses that related to the Canadian Retail and Wholesale Banking segments was recorded in the Corporate segment. Prior period results have not been restated. PCL on impaired financial assets includes Stage 3 PCL under IFRS 9 and counterparty-specific and individually insignificant PCL under IAS 39. PCL on performing financial assets, loan commitments, and financial guarantees include Stage 1 and Stage 2 PCL under IFRS 9 and incurred but not identified losses under IAS 39.

IFRS 9 does not require restatement of comparative period financial statements except in limited circumstances related to aspects of hedge accounting. Entities are permitted to restate comparatives as long as hindsight is not applied. The Bank has made the decision not to restate comparative period financial information and has recognized any measurement differences between the previous carrying amount and the new carrying amount on November 1, 2017 through an adjustment to opening retained earnings. As such, fiscal 2018 results reflect the adoption of IFRS 9, while prior periods reflect results under IAS 39.

U.S. Tax Reform
On December 22, 2017, the U.S. government enacted comprehensive tax legislation commonly referred to as the Tax Cuts and Jobs Act (the "U.S. Tax Act") which made broad and complex changes to the U.S. tax code.

The reduction of the U.S. federal corporate tax rate enacted by the U.S. Tax Act resulted in a net charge to earnings during the first quarter of 2018 of $453 million, comprising a net $48 million pre-tax charge related to the write-down of certain tax credit-related investments, partially offset by the favourable impact of the Bank's share of TD Ameritrade's remeasurement of its deferred income tax balances, and a $405 million income tax expense resulting from the remeasurement of the Bank's deferred tax assets and liabilities to the lower base rate of 21% and other related tax adjustments. The amount was estimated during the first quarter of 2018 and was updated through a net $61 million income tax benefit during the third quarter of 2018.

The lower corporate tax rate had and will have a positive effect on TD's current and future earnings. The amount of the benefit may vary due to, among other things, changes in interpretations and assumptions the Bank has made, guidance that may be issued by applicable regulatory authorities, and actions the Bank may take to reinvest some of the savings in its operations.













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



2018

2018

2017

2018

2017

Net interest income

$

5,756

$

5,655

$

5,330

$

22,239

$

20,847

Non-interest income


4,366


4,230


3,940


16,595


15,302

Total revenue


10,122


9,885


9,270


38,834


36,149

Provision for credit losses


670


561


578


2,480


2,216

Insurance claims and related expenses


684


627


615


2,444


2,246

Non-interest expenses


5,352


5,117


4,828


20,137


19,366

Income before income taxes and equity in net income of an












investment in TD Ameritrade


3,416


3,580


3,249


13,773


12,321

Provision for income taxes


691


705


640


3,182


2,253

Equity in net income of an investment in TD Ameritrade


235


230


103


743


449

Net income – reported


2,960


3,105


2,712


11,334


10,517

Preferred dividends


51


59


50


214


193

Net income available to common shareholders and












non-controlling interests in subsidiaries

$

2,909

$

3,046

$

2,662

$

11,120

$

10,324

Attributable to:











Common shareholders

$

2,891

$

3,028

$

2,627

$

11,048

$

10,203

Non-controlling interests


18


18


35


72


121

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


2018

2018

2017

2018

2017

Operating results – adjusted











Net interest income

$

5,756

$

5,655

$

5,330

$

22,239

$

20,847

Non-interest income1


4,366


4,230


3,736


16,684


15,099

Total revenue


10,122


9,885


9,066


38,923


35,946

Provision for credit losses


670


561


578


2,480


2,216

Insurance claims and related expenses


684


627


615


2,444


2,246

Non-interest expenses2


5,299


5,064


4,739


19,885


19,092

Income before income taxes and equity in net income of an












investment in TD Ameritrade


3,469


3,633


3,134


14,114


12,392

Provision for income taxes


704


778


669


2,898


2,336

Equity in net income of an investment in TD Ameritrade3


283


272


138


967


531

Net income – adjusted


3,048


3,127


2,603


12,183


10,587

Preferred dividends


51


59


50


214


193

Net income available to common shareholders and












non-controlling interests in subsidiaries – adjusted


2,997


3,068


2,553


11,969


10,394

Attributable to:











Non-controlling interests in subsidiaries, net of income taxes


18


18


35


72


121

Net income available to common shareholders – adjusted


2,979


3,050


2,518


11,897


10,273

Pre-tax adjustments of items of note











Amortization of intangibles4


(76)


(77)


(78)


(324)


(310)

Charges associated with the Scottrade transaction5


(25)


(18)


(46)


(193)


(46)

Impact from U.S. tax reform6





(48)


Dilution gain on the Scottrade transaction7




204



204

Loss on sale of TD Direct Investing business in Europe8






(42)

Fair value of derivatives hedging the reclassified available-for-sale












securities portfolio9






41

Provision for (recovery of) income taxes for items of note











Amortization of intangibles4,10


(13)


(12)


(19)


(55)


(78)

Charges associated with the Scottrade transaction5




(10)


(5)


(10)

Impact from U.S. tax reform6



(61)



344


Dilution gain on the Scottrade transaction7






Loss on sale of TD Direct Investing business in Europe8






(2)

Fair value of derivatives hedging the reclassified available-for-sale












securities portfolio9






7

Total adjustments for items of note


(88)


(22)


109


(849)


(70)

Net income available to common shareholders – reported

$

2,891

$

3,028

$

2,627

$

11,048

$

10,203



1

Adjusted non-interest income excludes the following items of note: Adjustment to the carrying balances of certain tax credit-related investments, as explained in footnote 6 – first quarter 2018 – $(89) million. Dilution gain on the Scottrade transaction, as explained in footnote 7 – fourth quarter 2017 – $204 million. Loss on sale of the Direct Investing business in Europe, as explained in footnote 8 – third quarter 2017 – $42 million. Fair value of derivatives hedging the reclassified available-for-sale (AFS) securities portfolio, as explained in footnote 9 – first quarter 2017 – $41 million gain. These amounts were reported in the Corporate segment.

2

Adjusted non-interest expenses excludes the following items of note: Amortization of intangibles, as explained in footnote 4 – fourth quarter 2018 – $53 million, third quarter 2018 – $53 million, second quarter 2018 – $62 million, first quarter 2018 – $63 million, fourth quarter 2017 – $63 million, third quarter 2017 – $58 million, second quarter 2017 – $63 million and first quarter 2017 – $64 million, reported in the Corporate segment. Charges associated with the Bank's acquisition of Scottrade Bank, as explained in footnote 5 – second quarter 2018 – $16 million, first quarter 2018 – $5 million and fourth quarter 2017 – $26 million, reported in the U.S. Retail segment.

3

Adjusted equity in net income of an investment in TD Ameritrade excludes the following items of note: Amortization of intangibles, as explained in footnote 4 – fourth quarter 2018 – $23 million, third quarter 2018 – $24 million, second quarter 2018 – $24 million, first quarter 2018 – $22 million, fourth quarter 2017 – $15 million, third quarter 2017 – $16 million, second quarter 2017 – $15 million and first quarter 2017 – $16 million; and the Bank's share of TD Ameritrade's deferred tax balances adjustment, as explained in footnote 6 – first quarter 2018 – $(41) million. The earnings impact of both of these items was reported in the Corporate segment. The Bank's share of costs associated with TD Ameritrade's acquisition of Scottrade Financial Services Inc. (Scottrade), as explained in footnote 5 – fourth quarter 2018 – $25 million, third quarter 2018 – $18 million, second quarter 2018 – $61 million and first quarter 2018 –$68 million and fourth quarter 2017 – $20 million. This item was reported in the U.S. Retail segment.

4

Amortization of intangibles relates to intangibles acquired as a result of asset acquisitions and business combinations, including the after tax amounts for amortization of intangibles relating to the Equity in net income of the investment in TD Ameritrade. 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.

5

On September 18, 2017, the Bank acquired Scottrade Bank and TD Ameritrade acquired Scottrade, together with the Bank's purchase of TD Ameritrade shares issued in connection with TD Ameritrade's acquisition of Scottrade (the "Scottrade transaction"). Scottrade Bank merged with TD Bank, N.A. The Bank and TD Ameritrade incurred acquisition related charges including employee severance, contract termination fees, direct transaction costs, and other one-time charges. These amounts have been recorded as an adjustment to net income and include charges associated with Bank's acquisition of Scottrade Bank and the after tax amounts for the Bank's share of charges associated with TD Ameritrade's acquisition of Scottrade. These amounts are reported in the U.S. Retail segment.

6

The reduction of the U.S. federal corporate tax rate enacted by the U.S. Tax Act resulted in a net charge to earnings during the first quarter of 2018 of $453 million, comprising a net $48 million pre-tax charge related to the write-down of certain tax credit-related investments, partially offset by the favourable impact of the Bank's share of TD Ameritrade's remeasurement of its deferred income tax balances, and a $405 million income tax expense resulting from the remeasurement of the Bank's deferred tax assets and liabilities to the lower base rate of 21% and other related tax adjustments.The amount was estimated during the first quarter of 2018 and was updated through a net $61 million income tax benefit during the third quarter of 2018. The earnings impact was reported in the Corporate segment.

7

In connection with TD Ameritrade's acquisition of Scottrade on September 18, 2017, TD Ameritrade issued 38.8 million shares, of which the Bank purchased 11.1 million pursuant to its pre-emptive rights. As a result of the share issuances, the Bank's common stock ownership percentage in TD Ameritrade decreased and the Bank realized a dilution gain of $204 million reported in the Corporate segment.

8

On June 2, 2017, the Bank completed the sale of its Direct Investing business in Europe to Interactive Investor PLC. A loss of $40 million after tax was recorded in the Corporate segment in other income (loss). The loss is not considered to be in the normal course of business for the Bank.

9

The Bank changed its trading strategy with respect to certain trading debt securities and reclassified these securities from trading to AFS under IAS 39 (classified as fair value through other comprehensive income (FVOCI) under IFRS 9) effective August 1, 2008. These debt securities are economically hedged, primarily with credit default swap (CDS) and interest rate swap contracts which are recorded on a fair value basis with changes in fair value recorded in the period's earnings. As a result the derivatives were accounted for on an accrual basis in Wholesale Banking and the gains and losses related to the derivatives in excess of the accrued amounts were reported in the Corporate segment. Adjusted results of the Bank in prior periods exclude the gains and losses of the derivatives in excess of the accrued amount. Effective February 1, 2017, the total gains and losses as a result of changes in fair value of these derivatives are recorded in Wholesale Banking.

10

The amounts reported for the three months ended January 31, 2018, and the twelve months ended October 31, 2018, exclude $31 million relating to the one-time adjustment of associated deferred tax liability balances as a result of the U.S. Tax Act. The impact of this adjustment is included in the Impact from U.S. tax reform item of note.


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


2018

2018

2017

2018

2017

Basic earnings per share – reported

$

1.58

$

1.65

$

1.42

$

6.02

$

5.51

Adjustments for items of note2


0.05


0.02


(0.06)


0.46


0.04

Basic earnings per share – adjusted

$

1.63

$

1.67

$

1.36

$

6.48

$

5.55












Diluted earnings per share – reported

$

1.58

$

1.65

$

1.42

$

6.01

$

5.50

Adjustments for items of note2


0.05


0.01


(0.06)


0.46


0.04

Diluted earnings per share – adjusted

$

1.63

$

1.66

$

1.36

$

6.47

$

5.54



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




2018


2018


2017


2018


2017


Provision for income taxes – reported

$

691


$

705


$

640


$

3,182


$

2,253


Total adjustments for items of note1


13



73



29



(284)



83


Provision for income taxes – adjusted

$

704


$

778


$

669


$

2,898


$

2,336


Effective income tax rate – reported


20.2

%


19.7

%


19.7

%


23.1

%


18.3

%

Effective income tax rate – adjusted2,3


20.3



21.4



21.3



20.5



18.9




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.

2

The tax effect for each item of note is calculated using the 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. The capital allocated to the business segments is based on 9% CET1 Capital.

Adjusted ROE is adjusted net income available to common shareholders as a percentage of average common equity.

Adjusted ROE is a non-GAAP financial measure and 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



2018


2018


2017


2018


2017


Average common equity

$

72,461


$

70,935


$

67,859


$

70,499


$

68,349


Net income available to common shareholders – reported


2,891



3,028



2,627



11,048



10,203


Items of note, net of income taxes1


88



22



(109)



849



70


Net income available to common shareholders – adjusted

$

2,979


$

3,050


$

2,518


$

11,897


$

10,273


Return on common equity – reported


15.8

%


16.9

%


15.4

%


15.7

%


14.9

%

Return on common equity – adjusted


16.3



17.1



14.7



16.9



15.0




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.

RETURN ON TANGIBLE COMMON EQUITY
Tangible common equity (TCE) is calculated as common shareholders' equity less goodwill, imputed goodwill and intangibles on an investment in TD Ameritrade and other acquired intangible assets, net of related deferred tax liabilities. Return on tangible common equity (ROTCE) is calculated as reported net income available to common shareholders after adjusting for the after‑tax amortization of acquired intangibles, which are treated as an item of note, as a percentage of average TCE. Adjusted ROTCE is calculated using reported net income available to common shareholders, adjusted for items of note, as a percentage of average TCE. Adjusted ROTCE provides a useful measure of the performance of the Bank's income producing assets, independent of whether or not they were acquired or developed internally. TCE, ROTCE, and adjusted ROTCE are each non-GAAP financial measures and are not defined terms 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 7: RETURN ON TANGIBLE 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



2018


2018


2017


2018


2017


Average common equity

$

72,461


$

70,935


$

67,859


$

70,499


$

68,349


Average goodwill


16,390



16,339



15,786



16,197



16,335


Average imputed goodwill and intangibles on an
















investment in TD Ameritrade


4,100



4,114



3,773



4,100



3,899


Average other acquired intangibles1


597



648



818



676



917


Average related deferred tax liabilities


(219)



(222)



(314)



(240)



(343)


Average tangible common equity


51,593



50,056



47,796



49,766



47,541


Net income available to common shareholders – reported


2,891



3,028



2,627



11,048



10,203


Amortization of acquired intangibles, net of income taxes2


63



65



59



269



232


Net income available to common shareholders after
















adjusting for after-tax amortization of acquired intangibles


2,954



3,093



2,686



11,317



10,435


Other items of note, net of income taxes2


25



(43)



(168)



580



(162)


Net income available to common shareholders – adjusted

$

2,979


$

3,050


$

2,518


$

11,897


$

10,273


Return on tangible common equity


22.7

%


24.5

%


22.3

%


22.7

%


21.9

%

Return on tangible common equity – adjusted


22.9



24.2



20.9



23.9



21.6




1

Excludes intangibles relating to software and asset servicing rights.

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.

Impact of Foreign Exchange Rate on U.S. Retail Segment Translated Earnings
U.S. Retail segment earnings, including the contribution from the Bank's investment in TD Ameritrade, reflect fluctuations in the U.S. dollar to Canadian dollar exchange rate compared with the same period last year. The changes in the value of the Canadian dollar had a favourable impact on U.S. Retail segment earnings for the three months ended October 31, 2018, and an unfavourable impact for the twelve months ended October 31, 2018, compared with the same period last year, as shown in the following table.






TABLE 8: IMPACT OF FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT TRANSLATED EARNINGS





(millions of Canadian dollars, except as noted)

For the three months ended

For the twelve months ended




October 31, 2018 vs.

October 31, 2018 vs.




October 31, 2017

October 31, 2017




Increase (Decrease)

Increase (Decrease)


U.S. Retail Bank









Total revenue



$

115


$

(173)


Non-interest expenses – reported




66



(94)


Non-interest expenses – adjusted




66



(93)


Net income – reported, after tax




36



(57)


Net income – adjusted, after tax




36



(58)


Equity in net income on an investment in TD Ameritrade – reported




9



(12)


Equity in net income on an investment in TD Ameritrade – adjusted




10



(10)


U.S. Retail segment decreased net income – reported, after tax




44



(68)


U.S. Retail segment decreased net income – adjusted, after tax




46



(68)


Earnings per share (Canadian dollars)









Basic – reported



$

0.02


$

(0.04)


Basic – adjusted




0.03



(0.04)


Diluted – reported




0.02



(0.04)


Diluted – adjusted




0.03



(0.04)


On a trailing twelve-month basis, a one cent appreciation/depreciation in the U.S. dollar to Canadian dollar average exchange rate will increase/decrease U.S. Retail segment net income by approximately $57 million.

SIGNIFICANT AND SUBSEQUENT EVENTS, AND PENDING ACQUISITIONS

Acquisition of Greystone Managed Investments Inc.
On November 1, 2018, the Bank acquired 100% of the outstanding equity of Greystone Capital Management Inc., the parent company of Greystone Managed Investments Inc. (Greystone) for consideration of $817 million, of which $475 million was paid in cash and $342 million was paid in the Bank's common shares. The value of 4.7 million common shares issued as consideration was based on the volume weighted-average market price of the Bank's common shares over the 10 trading day period immediately preceding the fifth business day prior to the acquisition date and was recorded based on market price at close. Common shares of $167 million issued to employee shareholders in respect of the purchase price will be held in escrow for two years post-acquisition, subject to their continued employment, and will be recorded as a compensation expense over the two-year escrow period.

The acquisition is accounted for as a business combination under the purchase method. As at November 1, 2018, the acquisition contributed $169 million of assets and $55 million of liabilities. The excess of accounting consideration over the fair value of the identifiable net assets is allocated to customer relationship intangibles of $140 million, deferred tax liability of $37 million and goodwill of $433 million. Goodwill is not deductible for tax purposes. The results of the acquisition will be consolidated from the acquisition date and reported in the Canadian Retail segment. The purchase price allocation is subject to refinement and may be adjusted to reflect new information about facts and circumstances that existed at the acquisition date during the measurement period.

Agreement for Air Canada Credit Card Loyalty Program
On November 26, 2018, the Bank finalized a long-term loyalty program agreement (the "Loyalty Agreement") with Air Canada. Under the terms of the Loyalty Agreement, the Bank will become the primary credit card issuer for Air Canada's new loyalty program when it launches in 2020 through to 2030. The Loyalty Agreement was finalized in conjunction with Air Canada entering into a definitive share purchase agreement with Aimia Inc. ("Aimia") for the acquisition of Aimia Canada Inc., which operates the Aeroplan loyalty business (the "Transaction"), for an aggregate purchase price of $450 million in cash and the assumption of approximately $1.9 billion of Aeroplan Miles liability. The closing of the Transaction is subject to the satisfaction of certain conditions, including receipt of Aimia shareholder approval and customary regulatory approvals. The Loyalty Agreement will become effective upon the closing of the Transaction and TD Aeroplan cardholders will become members of Air Canada's new loyalty program and their miles will be transitioned when Air Canada's new loyalty program launches in 2020.

If the proposed Transaction is completed, the Bank will pay $622 million plus applicable sales tax to Air Canada, of which $547 million ($446 million after sales and income taxes) will be recognized as an expense during the first quarter of 2019 to be reported in the Canadian Retail segment, and $75 million will be recognized as an intangible asset amortized over the Loyalty Agreement term, both of which are expected to be reported as items of note. In addition, the Bank will prepay $308 million plus applicable sales tax for the future purchase of loyalty points over a ten year period. The Bank also expects to incur additional pre-tax costs of approximately $100 million over two years to build the functionality required to facilitate the new program. The proposed Transaction is expected to reduce the Bank's CET 1 ratio on close by approximately 13 basis points (bps).

Normal Course Issuer Bid
As approved by the Board on November 28, 2018, the Bank announced its intention to amend its normal course issuer bid (NCIB) for up to an additional 20 million of its common shares, subject to the approval of OSFI and the TSX. The timing and amount of any purchases under the program are subject to regulatory approvals and to management discretion based on factors such as market conditions and capital adequacy.

Redemption of TD CaTS III Securities
On November 26, 2018, TD Capital Trust III announced its intention to redeem all of the outstanding TD Capital Trust III Securities – Series 2008 (TD CaTS III) on December 31, 2018, at a redemption price per TD CaTS III of $1,000, plus the unpaid distribution payable on the redemption date of December 31, 2018.

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, wealth, and insurance businesses; U.S. Retail, which includes the results of the U.S. personal and business banking operations, wealth management services, and the Bank's investment in TD Ameritrade; and Wholesale Banking. The Bank's other activities are grouped into the Corporate segment.

Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. Where applicable, the Bank measures and evaluates the performance of each segment based on adjusted results and ROE, and for those segments the Bank indicates that the measure is adjusted. For further details, refer to the "How the Bank Reports" section of this document, the "Business Focus" section in the 2018 MD&A, and Note 29 of the Bank's Consolidated Financial Statements for the year ended October 31, 2018. 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.

Upon adoption of IFRS 9, the current period PCL related to performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the respective segment. Under IAS 39 and prior to November 1, 2017, the PCL related to the collectively assessed allowance for incurred but not identified credit losses that related to Canadian Retail and Wholesale Banking segments was recorded in the Corporate segment. Prior period results have not been restated. PCL on impaired financial assets includes Stage 3 PCL under IFRS 9 and counterparty-specific and individually insignificant PCL under IAS 39. PCL on performing financial assets, loan commitments, and financial guarantees include Stage 1 and Stage 2 PCL under IFRS 9 and incurred but not identified credit losses under IAS 39.

The reduction of the U.S. federal corporate tax rate enacted by the U.S. Tax Act resulted in an adjustment during the first quarter of 2018 which was updated during the third quarter of 2018, to the Bank's U.S. deferred tax assets and liabilities to the lower base rate of 21% as well as an adjustment to the Bank's carrying balances of certain tax credit-related investments and its investment in TD Ameritrade. The earnings impact of these adjustments was reported in the Corporate segment. The lower corporate tax rate had, and will have a positive effect on TD's current and future earnings, which are and will be reflected in the results of the affected segments. The amount of the benefit may vary due to, among other things, changes in interpretations and assumptions the Bank has made, guidance that may be issued by applicable regulatory authorities, and actions the Bank may take to reinvest some of the savings in its operations. The effective tax rate for the U.S. Retail Bank declined in proportion to the reduction in the federal rate. For additional details, refer to "How the Bank Reports" and "Non-GAAP Financial Measures – Reconciliation of Adjusted to Reported Net Income" table in 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's results are reversed in the Corporate segment. The TEB adjustment for the quarter was $28 million, compared with $26 million in the fourth quarter last year, and $26 million in the prior quarter.




TABLE 9: CANADIAN RETAIL



(millions of Canadian dollars, except as noted)



For the three months ended



October 31


July 31


October 31



2018


2018


2017


Net interest income

$

3,022


$

2,948


$

2,773


Non-interest income


2,830



2,851



2,625


Total revenue


5,852



5,799



5,398


Provision for credit losses – impaired1


245



226



244


Provision for credit losses – performing2


18



20




Total provision for credit losses3


263



246



244


Insurance claims and related expenses


684



627



615


Non-interest expenses


2,530



2,400



2,272


Provision for (recovery of) income taxes


634



674



603


Net income

$

1,741


$

1,852


$

1,664












Selected volumes and ratios










Return on common equity4


45.1

%


48.6

%


45.7

%

Net interest margin (including on securitized assets)


2.94



2.93



2.86


Efficiency ratio


43.2



41.4



42.1


Assets under administration (billions of Canadian dollars)

$

389


$

403


$

387


Assets under management (billions of Canadian dollars)


289



297



283


Number of Canadian retail branches


1,098



1,108



1,128


Average number of full-time equivalent staff


39,283



38,838



38,222




1

PCL − impaired represents Stage 3 PCL under IFRS 9 and counterparty-specific and individually insignificant PCL under IAS 39 on financial assets.

2

PCL − performing represents Stage 1 and Stage 2 PCL under IFRS 9 and incurred but not identified PCL under IAS 39 on financial assets, loan commitments, and financial guarantees.

3

Effective November 1, 2017, the PCL related to the allowances for credit losses for all three stages are recorded within the respective segment. Under IAS 39 and prior to November 1, 2017, the PCL related to the incurred but not identified allowance for credit losses related to products in the Canadian Retail segment was recorded in the Corporate segment.

4

Capital allocated to the business segment was based on 9% CET1 Capital in fiscal 2018 and 2017.

Quarterly comparison – Q4 2018 vs. Q4 2017
Canadian Retail net income for the quarter was $1,741 million, an increase of $77 million, or 5%, compared with the fourth quarter last year. The increase in earnings reflects revenue growth, partially offset by higher non-interest expenses, insurance claims, and PCL. The annualized ROE for the quarter was 45.1%, compared with 45.7% in the fourth quarter last year.

Canadian Retail revenue is derived from Canadian personal and commercial banking, wealth, and insurance businesses. Revenue for the quarter was $5,852 million, an increase of $454 million, or 8%, compared with the fourth quarter last year.

Net interest income increased $249 million, or 9%, reflecting volume growth and higher margins. Average loan volumes increased $25 billion, or 6%, reflecting 6% growth in personal loans and 10% growth in business loans. Average deposit volumes increased $11 billion, or 3%, reflecting 3% growth in personal deposits, 5% growth in business deposits, and 2% growth in wealth deposits. Net interest margin was 2.94%, or an increase of 8 bps, reflecting rising interest rates, partially offset by competitive pricing in loans.

Non-interest income increased $205 million, or 8%, reflecting an increase in revenues from the insurance business, wealth asset growth, and higher fee-based revenue in the personal banking business. A decrease in the fair value of investments supporting claims liabilities, which resulted in a similar decrease to insurance claims, reduced non-interest income by $19 million.

Assets under administration (AUA) were $389 billion as at October 31, 2018, an increase of $2 billion, or 1%, compared with the fourth quarter last year, reflecting new asset growth, partially offset by decreases in market value. Assets under management (AUM) were $289 billion as at October 31, 2018, an increase of $6 billion, or 2%, compared with the fourth quarter last year, reflecting new asset growth.

PCL was $263 million, an increase of $19 million, or 8%, compared with the fourth quarter last year. PCL – impaired for the quarter was $245 million, an increase of $1 million, reflecting continued strong credit performance. PCL – performing (recorded in the Corporate segment last year as incurred but not identified credit losses under IAS 39) was $18 million, primarily in the real estate secured lending and commercial portfolios. Total PCL as an annualized percentage of credit volume was 0.25%, unchanged from the same quarter last year. Net impaired loans were $664 million, an increase of $109 million, or 20%. Net impaired loans as a percentage of total loans were 0.16%, compared with 0.14%, as at October 31, 2017.

Insurance claims and related expenses for the quarter were $684 million, an increase of $69 million, or 11%, compared with the fourth quarter last year, reflecting an increase in reinsurance liabilities assumed, more severe weather-related events, less favourable prior years' claims development, and the impact of changes to forward-looking actuarial assumptions, partially offset by a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease to non-interest income.

Non-interest expenses for the quarter were $2,530 million, an increase of $258 million, or 11%, compared with the fourth quarter last year, reflecting increased marketing and promotion costs, increased employee-related expenses including revenue-based variable compensation expenses in the wealth business, and increased spend related to strategic initiatives.

The efficiency ratio for the quarter was 43.2%, compared with 42.1% in the fourth quarter last year.

Quarterly comparison – Q4 2018 vs. Q3 2018
Canadian Retail net income for the quarter decreased $111 million, or 6%, compared with the prior quarter. The decrease in earnings reflects higher non-interest expenses, insurance claims, and PCL, partially offset by revenue growth. The annualized ROE for the quarter was 45.1%, compared with 48.6% in the prior quarter.

Revenue increased $53 million, or 1%, compared with the prior quarter. Net interest income increased $74 million, or 3%, reflecting volume growth and higher margins. Average loan volumes increased $9 billion, or 2%, reflecting 2% growth in personal loans and 2% growth in business loans. Average deposit volumes increased $2 billion. Net interest margin was 2.94%, or an increase of 1 basis point, primarily due to rising interest rates, partially offset by changes in balance sheet mix.

Non-interest income decreased $21 million, or 1%, reflecting higher trading volumes in the direct investing business, partially offset by lower fee-based revenue in the personal banking business. A decrease in the fair value of investments supporting claims liabilities, which resulted in a similar decrease to insurance claims, reduced non-interest income by $32 million.

AUA decreased $14 billion, or 3%, and AUM decreased $8 billion, or 3%, compared with the prior quarter, both reflecting decreases in market value.

PCL increased by $17 million, or 7%, compared with the prior quarter. PCL – impaired increased by $19 million, or 8%, primarily reflecting higher provisions in the auto-finance, real estate secured lending, and credit card portfolios. PCL – performing decreased by $2 million. Total PCL as an annualized percentage of credit volume was 0.25%, an increase of 1 basis point over the prior quarter. Net impaired loans increased $142 million, or 27%. Net impaired loans as a percentage of total loans was 0.16%, compared with 0.13%, in the prior quarter.

Insurance claims and related expenses for the quarter increased $57 million, or 9%, compared with the prior quarter, reflecting higher current year claims, the impact of changes to forward-looking actuarial assumptions, partially offset by a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease to non-interest income, and less severe weather-related events.

Non-interest expenses increased $130 million, or 5%, compared with the prior quarter, reflecting increased spend related to strategic initiatives, marketing and promotion.

The efficiency ratio for the quarter was 43.2%, compared with 41.4% in the prior quarter.











TABLE 10: U.S. RETAIL










(millions of dollars, except as noted)





For the three months ended




October 31



July 31



October 31


Canadian Dollars


2018



2018



2017


Net interest income

$

2,145


$

2,114


$

1,872


Non-interest income


713



698



669


Total revenue – reported


2,858



2,812



2,541


Provision for credit losses – impaired1


205



185



199


Provision for credit losses – performing2


39



37



4


Total provision for credit losses


244



222



203


Non-interest expenses – reported


1,637



1,528



1,529


Non-interest expenses – adjusted3


1,637



1,528



1,503


Provision for (recovery of) income taxes – reported4


91



144



138


Provision for (recovery of) income taxes – adjusted4


91



144



148


U.S. Retail Bank net income – reported


886



918



671


U.S. Retail Bank net income – adjusted3


886



918



687


Equity in net income of an investment in TD Ameritrade – reported


228



225



105


Equity in net income of an investment in TD Ameritrade – adjusted5


253



243



125


Net income – reported


1,114



1,143



776


Net income – adjusted

$

1,139


$

1,161


$

812












U.S. Dollars










Net interest income

$

1,646


$

1,620


$

1,498


Non-interest income


547



536



534


Total revenue – reported


2,193



2,156



2,032


Provision for credit losses – impaired1


157



142



160


Provision for credit losses – performing2


30



28



3


Total provision for credit losses


187



170



163


Non-interest expenses – reported


1,256



1,172



1,222


Non-interest expenses – adjusted3


1,256



1,172



1,201


Provision for (recovery of) income taxes – reported4


70



111



109


Provision for (recovery of) income taxes – adjusted4


70



111



117


U.S. Retail Bank net income – reported


680



703



538


U.S. Retail Bank net income – adjusted3


680



703



551


Equity in net income of an investment in TD Ameritrade – reported


175



174



83


Equity in net income of an investment in TD Ameritrade – adjusted5


194



188



99


Net income – reported


855



877



621


Net income – adjusted

$

874


$

891


$

650












Selected volumes and ratios










Return on common equity – reported6


12.8

%


13.1

%


9.3

%

Return on common equity – adjusted6


13.0



13.3



9.7


Net interest margin7


3.33



3.33



3.18


Efficiency ratio – reported


57.3



54.4



60.1


Efficiency ratio – adjusted


57.3



54.4



59.1


Assets under administration (billions of U.S. dollars)

$

19


$

19


$

18


Assets under management (billions of U.S. dollars)


52



58



63


Number of U.S. retail stores


1,257



1,246



1,270


Average number of full-time equivalent staff


27,015



26,804



26,094




1

PCL − impaired represents Stage 3 PCL under IFRS 9 and counterparty-specific and individually insignificant PCL under IAS 39 on financial assets.

2

PCL − performing represents Stage 1 and Stage 2 PCL under IFRS 9 and incurred but not identified PCL under IAS 39 on financial assets, loan commitments, and financial guarantees.

3

Adjusted U.S. Retail Bank net income excludes the following items of note: Charges associated with the Bank's acquisition of Scottrade Bank – fourth quarter 2017 – $26 million ($16 million after tax) or US$21 million (US$13 million after tax). 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.

4

The reduction of the U.S. federal corporate tax rate enacted by the U.S. Tax Act has resulted in an adjustment during 2018 to the Bank's U.S. deferred tax assets and liabilities to the lower base rate of 21%. The amount was estimated during the first quarter of 2018 and was updated during the third quarter of 2018. This earnings impact was reported in the Corporate segment. For additional details, refer to the "Non-GAAP Financial Measures − Reconciliation of Adjusted to Reported Net Income" table in the "How We Performed" section of this document.

5

Adjusted equity in net income of an investment in TD Ameritrade excludes the following items of note: The Bank's share of costs associated with TD Ameritrade's acquisition of Scottrade in the fourth quarter 2018 – $25 million or US$19 million after tax, third quarter 2018 – $18 million or US$14 million after tax, and fourth quarter 2017 – $20 million or US$16 million after tax. 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

Capital allocated to the business segment was based on 9% CET1 Capital in fiscal 2018 and 2017.

7

Net interest margin excludes the impact related to the TD Ameritrade Insured Deposit Accounts and the impact of intercompany deposits and cash collateral. In addition, the value of tax-exempt interest income is adjusted to its equivalent before-tax value.

Quarterly comparison – Q4 2018 vs. Q4 2017
U.S. Retail reported net income for the quarter was $1,114 million (US$855 million), an increase of $338 million (US$234 million), or 44% (38% in U.S. dollars), compared with the fourth quarter last year. On an adjusted basis, net income for the quarter was $1,139 million (US$874 million), an increase of $327 million (US$224 million), or 40% (34% in U.S. dollars). The reported and adjusted annualized ROE for the quarter was 12.8% and 13.0% respectively, compared with 9.3% and 9.7%, respectively, in the fourth quarter last year.

U.S. Retail net income includes contributions from the U.S. Retail Bank and the Bank's investment in TD Ameritrade. Net income for the quarter from the U.S. Retail Bank was $886 million (US$680 million). Reported and adjusted net income for the quarter from the Bank's investment in TD Ameritrade was $228 million (US$175 million) and $253 million (US$194 million), respectively.

The reported contribution from TD Ameritrade of US$175 million increased US$92 million, compared with the fourth quarter last year, primarily due to the benefit of the Scottrade transaction, higher interest rates, a lower corporate tax rate, and increased trading volumes, partially offset by higher operating expenses. Adjusted contribution from TD Ameritrade increased US$95 million, or 96%.

U.S. Retail Bank net income for the quarter increased US$142 million, or 26%, due to higher deposit margins, higher loan and deposit volumes, fee income growth, and a lower corporate tax rate, partially offset by higher expenses and PCL. U.S. Retail Bank net income increased US$129 million, or 23%, compared to the adjusted U.S. Retail Bank net income in the fourth quarter last year.

U.S. Retail Bank revenue is derived from personal and business banking, and wealth management. Revenue for the quarter was US$2,193 million, an increase of US$161 million, or 8%, compared with the fourth quarter last year. Net interest income increased US$148 million, or 10%, primarily due to higher deposit margins, and growth in loan and deposit volumes. Net interest margin was 3.33%, a 15 bps increase primarily due to higher deposit margins. Non‑interest income increased US$13 million, or 2%, reflecting fee income growth in personal and commercial banking, partially offset by losses on certain tax credit-related investments.

Average loan volumes increased US$4 billion, or 3%, compared with the fourth quarter last year due to growth in business and personal loans of 2% and 3%, respectively. Average deposit volumes increased US$14 billion, or 5%, reflecting 4% growth in business deposit volumes, 4% growth in personal deposit volumes, and an 8% increase in sweep deposit volume from TD Ameritrade. The increase in sweep deposit volumes primarily reflected the Scottrade transaction.

AUA were US$19 billion as at October 31, 2018, relatively flat compared with the fourth quarter last year. AUM were US$52 billion as at October 31, 2018, a decrease of 17%, reflecting net fund outflows.

PCL for the quarter was US$187 million, an increase of US$24 million, or 15%, compared with the fourth quarter last year. PCL – impaired was US$157 million, a decrease of US$3 million, or 2%. PCL – performing was US$30 million, an increase of US$27 million, reflecting the impact of methodology changes related to the adoption of IFRS 9 where Stage 2 loans are now measured based on a lifetime expected credit loss (ECL). U.S. Retail PCL including only the Bank's contractual portion of credit losses in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.50%, or an increase of 6 bps. Net impaired loans, excluding ACI loans, were US$1.4 billion, a decrease of US$45 million, or 3%. Excluding ACI loans, net impaired loans as a percentage of total loans were 1% as at October 31, 2018.

Reported non-interest expenses for the quarter were US$1,256 million, an increase of US$34 million, or 3%, compared with the fourth quarter last year, reflecting higher investments in business initiatives, business volume growth, and increased employee-related costs, partially offset by productivity savings. On an adjusted basis, non-interest expenses increased US$55 million, or 5%.

The reported and adjusted efficiency ratio for the quarter was 57.3%, compared with 60.1% and 59.1%, respectively, in the fourth quarter last year.

Quarterly comparison – Q4 2018 vs. Q3 2018
U.S. Retail reported net income decreased $29 million (US$22 million), or 3% (3% in U.S. dollars), compared with the prior quarter, while adjusted net income decreased $22 million (US$17 million), or 2% (2% in U.S. dollars). The reported and adjusted annualized ROE for the quarter was 12.8% and 13.0% respectively, compared to 13.1% and 13.3%, respectively, in the prior quarter.

The reported contribution from TD Ameritrade increased US$1 million, or 1%, compared with the prior quarter, as higher asset-based revenue was largely offset by reduced trading volumes and higher charges associated with the Scottrade transaction. On an adjusted basis, the contribution from TD Ameritrade increased US$6 million, or 3%.

U.S. Retail Bank net income for the quarter decreased US$23 million, or 3%, compared with the prior quarter, due to higher expenses and PCL, partially offset by higher loan and deposit volumes.

Revenue for the quarter increased US$37 million, or 2%, compared with the prior quarter. Net interest income increased US$26 million, or 2%, primarily due to growth in loan and deposit volumes. Net interest margin was 3.33%, flat compared to the prior quarter. Non‑interest income increased US$11 million, or 2%.

Average loan volumes increased US$2 billion, or 1%, compared with the prior quarter, due to growth in business and personal loans of 1% and 2%, respectively. Average deposit volumes increased US$1 billion, reflecting 5% growth in business deposit volumes and a 2% decrease in sweep deposit volume from TD Ameritrade.

AUA were US$19 billion as at October 31, 2018, relatively flat compared with the prior quarter. AUM were US$52 billion as at October 31, 2018, a decrease of 11%, reflecting net fund outflows and market depreciation.

PCL for the quarter increased US$17 million, or 10%, compared with the prior quarter. PCL – impaired was US$157 million, an increase of US$15 million, or 11%, primarily reflecting seasonal trends in the auto portfolio. PCL – performing was US$30 million, an increase of US$2 million, or 7%, primarily reflecting seasonal trends in the credit card portfolios, offset by improvement in the residential lending portfolios. U.S. Retail PCL including only the Bank's contractual portion of credit losses in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.50%, or an increase of 4 bps. Net impaired loans, excluding ACI loans, were US$1.4 billion, an increase of US$22 million, or 2%. Excluding ACI loans, net impaired loans as a percentage of total loans were 1% as at October 31, 2018.

Non-interest expenses for the quarter increased US$84 million, or 7%, compared with the prior quarter, primarily reflecting higher investments in business initiatives, and increased employee-related costs, partially offset by charges for store optimization in the prior quarter.

The efficiency ratio for the quarter was 57.3%, compared with 54.4% in the prior quarter.











TABLE 11: WHOLESALE BANKING










(millions of Canadian dollars, except as noted)


For the three months ended




October 31


July 31


October 31




2018


2018


2017


Net interest income (TEB)

$

273


$

276


$

277


Non-interest income1


644



519



417


Total revenue


917



795



694


Provision for (recovery of) credit losses – impaired1,2







Provision for (recovery of) credit losses – performing3


8



(14)




Total provision for (recovery of) credit losses4


8



(14)




Non-interest expenses


537



518



420


Provision for (recovery of) income taxes (TEB)5


86



68



43


Net income

$

286


$

223


$

231













Selected volumes and ratios










Trading-related revenue (TEB)

$

484


$

275


$

311


Gross drawn (billions of Canadian dollars)6


23.9



23.6



20.3


Return on common equity7


18.4

%


14.0

%


16.0

%

Efficiency ratio


58.6



65.2



60.5


Average number of full-time equivalent staff


4,426



4,239



4,043




1

Effective November 1, 2017, the accrual costs related to CDS used to manage Wholesale Banking's corporate lending exposure are recorded in non-interest income, previously reported as a component of PCL. The change in market value of the CDS, in excess of the accrual cost, continues to be reported in the Corporate segment.

2

PCL − impaired represents Stage 3 PCL under IFRS 9 and counterparty-specific and individually insignificant PCL under IAS 39 on financial assets.

3

PCL − performing represents Stage 1 and Stage 2 PCL under IFRS 9 and incurred but not identified PCL under IAS 39 on financial assets, loan commitments, and financial guarantees.

4

Effective November 1, 2017, the PCL related to the allowances for credit losses for all three stages are recorded within the respective segment. Under IAS 39 and prior to November 1, 2017, the PCL related to the incurred but not identified allowance for credit losses related to products in Wholesale Banking was recorded in the Corporate segment.

5

The reduction of the U.S. federal corporate tax rate enacted by the U.S. Tax Act resulted in a one-time adjustment during the first quarter of 2018 to Wholesale Banking's U.S. deferred tax assets and liabilities to the lower base rate of 21%. The earnings impact was reported in the Corporate segment. For additional details, 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

Includes gross loans and bankers' acceptances, excluding letters of credit, cash collateral, CDS, and reserves for the corporate lending business.

7

Capital allocated to the business segment was based on 9% CET1 Capital in fiscal 2018 and 2017.

Quarterly comparison – Q4 2018 vs. Q4 2017
Wholesale Banking net income for the quarter was $286 million, an increase of $55 million, or 24%, compared with the fourth quarter last year reflecting higher revenue, partially offset by higher non-interest expenses, higher taxes and higher PCL. The annualized ROE for the quarter was 18.4%, compared with 16.0% in the fourth quarter last year.

Wholesale Banking revenue is derived primarily from capital markets and corporate and investment banking services provided to corporate, government, and institutional clients. Wholesale Banking generates revenue from corporate lending, advisory, underwriting, sales, trading and research, client securitization, trade finance, cash management, prime services, and trade execution services. Revenue for the quarter was $917 million, an increase of $223 million, or 32%, compared with the fourth quarter last year reflecting higher trading-related revenue, and fee and advisory revenue.

PCL for the quarter was $8 million, compared to no PCL in the fourth quarter last year. PCL – performing (recorded in the Corporate segment last year as incurred but not identified credit losses under IAS 39) for the quarter was $8 million primarily reflecting the adoption of IFRS 9 including where Stage 2 loans are measured on a lifetime ECL.

Non-interest expenses were $537 million, an increase of $117 million, or 28%, compared with the fourth quarter last year reflecting higher variable compensation commensurate with increased revenue, higher initiative spend and continued investments in client facing employees supporting the global expansion of Wholesale Banking's U.S. dollar strategy.

Quarterly comparison – Q4 2018 vs. Q3 2018
Wholesale Banking net income for the quarter increased $63 million, or 28%, compared with the prior quarter reflecting higher revenue, partially offset by higher non-interest expenses and PCL for this quarter compared to a net recovery of PCL in the prior quarter. The annualized ROE for the quarter was 18.4%, compared with 14.0% in the prior quarter.

Revenue for the quarter increased $122 million, or 15%, compared with the prior quarter reflecting higher trading-related revenue including equity trading from higher market volatility and gains on the revaluation of short-term trading deposits using own credit spreads.

PCL for the quarter was $8 million, compared to a benefit of $14 million in the prior quarter. PCL – performing increased by $22 million reflecting a prior quarter benefit and higher Stage 2 volumes in the current quarter.

Non-interest expenses for the quarter increased $19 million, or 4%, compared with the prior quarter primarily reflecting higher spend on regulatory initiatives.








TABLE 12: CORPORATE







(millions of Canadian dollars)

For the three months ended



October 31

July 31

October 31



2018

2018

2017

Net income (loss) – reported1,2

$

(181)

$

(113)

$

41

Pre-tax adjustments for items of note3







Amortization of intangibles


76


77


78

Dilution gain on the Scottrade transaction




(204)

Total pre-tax adjustments for items of note


76


77


(126)

Provision for (recovery of) income taxes for items of note2


13


73


19

Net income (loss) – adjusted

$

(118)

$

(109)

$

(104)

Decomposition of items included in net income (loss) – adjusted







Net corporate expenses

$

(221)

$

(214)

$

(182)

Other


85


87


43

Non-controlling interests


18


18


35

Net income (loss) – adjusted

$

(118)

$

(109)

$

(104)









Selected volumes







Average number of full-time equivalent staff


15,864


15,377


14,212



1

Effective November 1, 2017, the PCL related to the allowances for credit losses for all three stages are recorded within the respective segment. Under IAS 39 and prior to November 1, 2017, the PCL related to the incurred but not identified allowance for credit losses related to products in the Canadian Retail and Wholesale Banking segments were recorded in the Corporate segment.

2

The reduction of the U.S. federal corporate tax rate enacted by the U.S. Tax Act resulted in a net charge to earnings during the first quarter of 2018 of $453 million, comprising a net $48 million pre-tax charge related to the write-down of certain tax credit-related investments, partially offset by the favourable impact of the Bank's share of TD Ameritrade's remeasurement of its deferred income tax balances, and a $405 million income tax expense resulting from the remeasurement of the Bank's deferred tax assets and liabilities to the lower base rate of 21% and other related tax adjustments. The amount was estimated during the first quarter of 2018 and was updated during the third quarter of 2018 through a net $61 million income tax benefit.

3

For explanations of items of note, refer to the "Non-GAAP Financial Measures – Reconciliation of Adjusted to Reported Net Income" table in the "Financial Results Overview" section of this document.

Quarterly comparison – Q4 2018 vs. Q4 2017
Corporate segment's reported net loss for the quarter was $181 million, compared with a reported net income of $41 million in the fourth quarter last year. The year-over-year increase in reported net loss was primarily attributable to the dilution gain on the Scottrade transaction in the same quarter last year, increased net corporate expenses and decreased non-controlling interests, partially offset by increased contribution from Other items. Net corporate expenses increased due to the positive impact of tax adjustments in the same quarter last year. Other items increased primarily due to increased revenue from treasury and balance sheet management activities this quarter. Adjusted net loss was $118 million, compared with an adjusted net loss of $104 million in the fourth quarter last year.

Quarterly comparison – Q4 2018 vs. Q3 2018
Corporate segment's reported net loss for the quarter was $181 million, compared with a reported net loss of $113 million in the prior quarter. The quarter-over-quarter increase in reported net loss was primarily attributable to the income tax benefit resulting from the Bank's update to the impact of U.S. tax reform in the last quarter and increased net corporate expenses. Net corporate expenses increased largely due to the positive impact of tax adjustments in the prior quarter. Adjusted net loss was $118 million, compared with an adjusted net loss of $109 million in the prior quarter.

CONSOLIDATED FINANCIAL STATEMENTS










CONSOLIDATED BALANCE SHEET1





(millions of Canadian dollars)




As at



October 31

October 31




2018


2017

ASSETS



Cash and due from banks

$

4,735

$

3,971

Interest-bearing deposits with banks


30,720


51,185




35,455


55,156

Trading loans, securities, and other


127,897


103,918

Non-trading financial assets at fair value through profit or loss


4,015


n/a2

Derivatives


56,996


56,195

Financial assets designated at fair value through profit or loss


3,618


4,032

Financial assets at fair value through other comprehensive income


130,600


n/a

Available-for-sale securities


n/a


146,411




323,126


310,556

Debt securities at amortized cost, net of allowance for credit losses


107,171


n/a

Held-to-maturity securities


n/a


71,363

Securities purchased under reverse repurchase agreements


127,379


134,429

Loans





Residential mortgages


225,191


222,079

Consumer instalment and other personal


172,079


157,101

Credit card


35,018


33,007

Business and government


217,654


200,978

Debt securities classified as loans


n/a


3,209




649,942


616,374

Allowance for loan losses


(3,549)


(3,783)

Loans, net of allowance for loan losses


646,393


612,591

Other





Customers' liability under acceptances


17,267


17,297

Investment in TD Ameritrade


8,445


7,784

Goodwill


16,536


16,156

Other intangibles


2,459


2,618

Land, buildings, equipment, and other depreciable assets


5,324


5,313

Deferred tax assets


2,812


2,497

Amounts receivable from brokers, dealers, and clients


26,940


29,971

Other assets


15,596


13,264




95,379


94,900

Total assets

$

1,334,903

$

1,278,995

LIABILITIES





Trading deposits

$

114,704

$

79,940

Derivatives


48,270


51,214

Securitization liabilities at fair value


12,618


12,757




175,592


143,911

Deposits





Personal


477,644


468,155

Banks


16,712


25,887

Business and government


357,083


338,782




851,439


832,824

Other





Acceptances


17,269


17,297

Obligations related to securities sold short


39,478


35,482

Obligations related to securities sold under repurchase agreements


93,389


88,591

Securitization liabilities at amortized cost


14,683


16,076

Amounts payable to brokers, dealers, and clients


28,385


32,851

Insurance-related liabilities


6,698


6,775

Other liabilities


19,190


20,470




219,092


217,542

Subordinated notes and debentures


8,740


9,528

Total liabilities


1,254,863


1,203,805

EQUITY





Shareholders' Equity





Common shares


21,221


20,931

Preferred shares


5,000


4,750

Treasury shares – common


(144)


(176)

Treasury shares – preferred


(7)


(7)

Contributed surplus


193


214

Retained earnings


46,145


40,489

Accumulated other comprehensive income (loss)


6,639


8,006




79,047


74,207

Non-controlling interests in subsidiaries


993


983

Total equity


80,040


75,190

Total liabilities and equity

$

1,334,903

$

1,278,995



1

The amounts as at October 31, 2018 and October 31, 2017, have been derived from audited financial statements.

2

Not applicable.

Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

CONSOLIDATED STATEMENT OF INCOME1









(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


2018

2017

2018

2017

Interest income2









Loans

$

7,519

$

6,258

$

27,790

$

23,663

Securities










Interest


1,906


1,275


6,685


4,595


Dividends


375


212


1,234


1,128

Deposits with banks


194


141


713


446



9,994


7,886


36,422


29,832

Interest expense









Deposits


3,126


1,858


10,489


6,615

Securitization liabilities


155


133


586


472

Subordinated notes and debentures


83


103


337


391

Other


874


462


2,771


1,507



4,238


2,556


14,183


8,985

Net interest income


5,756


5,330


22,239


20,847

Non-interest income









Investment and securities services


1,175


1,095


4,656


4,459

Credit fees


311


278


1,210


1,130

Net securities gain (loss)


34


41


111


128

Trading income (loss)


322


141


1,052


303

Income (loss) from non-trading financial instruments at fair value through profit or loss


22


n/a


48


n/a

Income (loss) from financial instruments designated at fair value through profit or loss


(46)


(31)


(170)


(254)

Service charges


698


658


2,716


2,648

Card services


608


560


2,376


2,388

Insurance revenue


1,047


943


4,045


3,760

Other income (loss)


195


255


551


740



4,366


3,940


16,595


15,302

Total revenue


10,122


9,270


38,834


36,149

Provision for credit losses


670


578


2,480


2,216

Insurance claims and related expenses


684


615


2,444


2,246

Non-interest expenses









Salaries and employee benefits


2,680


2,427


10,377


10,018

Occupancy, including depreciation


452


442


1,765


1,794

Equipment, including depreciation


276


252


1,073


992

Amortization of other intangibles


217


186


815


704

Marketing and business development


257


203


803


726

Restructuring charges (recovery)



(4)


73


2

Brokerage-related fees


77


74


306


314

Professional and advisory services


421


324


1,247


1,165

Other


972


924


3,678


3,651



5,352


4,828


20,137


19,366

Income before income taxes and equity in net income of an investment in TD Ameritrade


3,416


3,249


13,773


12,321

Provision for (recovery of) income taxes


691


640


3,182


2,253

Equity in net income of an investment in TD Ameritrade


235


103


743


449

Net income


2,960


2,712


11,334


10,517

Preferred dividends


51


50


214


193

Net income available to common shareholders and non-controlling interests










in subsidiaries

$

2,909

$

2,662

$

11,120

$

10,324

Attributable to:










Common shareholders

$

2,891

$

2,627

$

11,048

$

10,203


Non-controlling interests in subsidiaries


18


35


72


121

Earnings per share (Canadian dollars)









Basic

$

1.58

$

1.42

$

6.02

$

5.51

Diluted


1.58


1.42


6.01


5.50

Dividends per common share (Canadian dollars)


0.67


0.60


2.61


2.35



1

The amounts for the three months ended October 31, 2018, and October 31, 2017, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2018, and October 31, 2017, have been derived from audited financial statements.

2

Includes $8,376 million and $30,639 million, for the three and twelve months ended October 31, 2018, respectively, which has been calculated based on the effective interest rate method.

Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME1,2









(millions of Canadian dollars)

For the three months ended

For the twelve months ended




October 31

October 31

October 31

October 31




2018

2017

2018

2017

Net income

$

2,960

$

2,712

$

11,334

$

10,517

Other comprehensive income (loss), net of income taxes









Items that will be subsequently reclassified to net income










Net change in unrealized gains (losses) on financial assets at fair value through











other comprehensive income (available-for-sale securities under IAS 39)










Change in unrealized gains (losses) on available-for-sale securities


n/a


97


n/a


467


Change in unrealized gains (losses) on debt securities at fair value through other











comprehensive income


(81)


n/a


(261)


n/a


Reclassification to earnings of net losses (gains) in respect of available-for-sale securities


n/a


(61)


n/a


(143)


Reclassification to earnings of net losses (gains) in respect of debt securities at fair value











through other comprehensive income


(16)


n/a


(22)


n/a


Reclassification to earnings of changes in allowance for credit losses on debt securities at fair











value through other comprehensive income


(1)


n/a


(1)


n/a





(98)


36


(284)


324


Net change in unrealized foreign currency translation gains (losses) on











Investments in foreign operations, net of hedging activities










Unrealized gains (losses) on investments in foreign operations


780


2,275


1,323


(2,534)


Reclassification to earnings of net losses (gains) on investments in foreign operations





(17)


Net gains (losses) on hedges of investments in foreign operations


(184)


(637)


(288)


659


Reclassification to earnings of net losses (gains) on hedges of investments in foreign operations





4





596


1,638


1,035


(1,888)


Net change in gains (losses) on derivatives designated as cash flow hedges










Change in gains (losses) on derivatives designated as cash flow hedges


(146)


888


(1,624)


(1,454)


Reclassification to earnings of losses (gains) on cash flow hedges


(196)


(1,120)


(455)


(810)





(342)


(232)


(2,079)


(2,264)

Items that will not be subsequently reclassified to net income









Actuarial gains (losses) on employee benefit plans


259


(79)


622


325

Change in net unrealized gains (losses) on equity securities designated at fair value through










other comprehensive income


(15)


n/a


38


n/a

Total other comprehensive income (loss), net of income taxes


400


1,363


(668)


(3,503)

Total comprehensive income (loss), net of income taxes

$

3,360

$

4,075

$

10,666

$

7,014

Attributable to:










Common shareholders

$

3,291

$

3,990

$

10,380

$

6,700


Preferred shareholders


51


50


214


193


Non-controlling interests in subsidiaries


18


35


72


121



1

The amounts for the three months ended October 31, 2018, and October 31, 2017, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2018, and October 31, 2017, have been derived from audited financial statements.

2

The amounts are net of income tax provisions (recoveries) presented in the following table.

Income Tax Provisions (Recoveries) in the Consolidated Statement of Comprehensive Income

(millions of Canadian dollars)

For the three months ended

For the twelve months ended



October 31

October 31

October 31

October 31




2018


2017


2018


2017

Change in unrealized gains (losses) on available-for-sale securities

$

n/a

$

(16)

$

n/a

$

150

Change in unrealized gains (losses) on debt securities at fair value through










other comprehensive income


(24)


n/a


(139)


n/a

Less: Reclassification to earnings of net losses (gains) in respect of available-for-sale securities


n/a


(27)


n/a


(36)

Less: Reclassification to earnings of net losses (gains) in respect of debt securities at fair value










through other comprehensive income


8


n/a


13


n/a

Less: Reclassification to earnings of changes in allowance for credit losses on debt securities at










fair value through other comprehensive income



n/a



n/a

Unrealized gains (losses) on investments in foreign operations





Less: Reclassification to earnings of net losses (gains) on investment in foreign operations





Net gains (losses) on hedges of investments in foreign operations


(67)


(227)


(104)


237

Less: Reclassification to earnings of net losses (gains) on hedges of investments in foreign










operations





(1)

Change in gains (losses) on derivatives designated as cash flow hedges


(11)


489


(473)


(789)

Less: Reclassification to earnings of losses (gains) on cash flow hedges


110


622


283


258

Actuarial gains (losses) on employee benefit plans


93


(15)


243


129

Change in net unrealized gains (losses) on equity securities designated at fair value










through other comprehensive income


(5)


n/a


20


n/a

Total income taxes

$

(132)

$

(364)

$

(749)

$

(494)

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY1









(millions of Canadian dollars)

For the three months ended

For the twelve months ended


October 31

October 31

October 31

October 31


2018

2017

2018

2017

Common shares









Balance at beginning of period

$

21,099

$

20,912

$

20,931

$

20,711

Proceeds from shares issued on exercise of stock options


28


27


152


148

Shares issued as a result of dividend reinvestment plan


94


82


366


329

Purchase of shares for cancellation



(90)


(228)


(257)

Balance at end of period


21,221


20,931


21,221


20,931

Preferred shares









Balance at beginning of period


4,850


4,750


4,750


4,400

Issue of shares


400



750


350

Redemption of shares


(250)



(500)


Balance at end of period


5,000


4,750


5,000


4,750

Treasury shares – common









Balance at beginning of period


(168)


(22)


(176)


(31)

Purchase of shares


(2,134)


(2,684)


(8,295)


(9,654)

Sale of shares


2,158


2,530


8,327


9,509

Balance at end of period


(144)


(176)


(144)


(176)

Treasury shares – preferred









Balance at beginning of period


(3)


(8)


(7)


(5)

Purchase of shares


(26)


(38)


(129)


(175)

Sale of shares


22


39


129


173

Balance at end of period


(7)


(7)


(7)


(7)

Contributed surplus









Balance at beginning of period


195


207


214


203

Net premium (discount) on sale of treasury shares



6


(2)


23

Issuance of stock options, net of options exercised


(1)



(12)


(8)

Other


(1)


1


(7)


(4)

Balance at end of period


193


214


193


214

Retained earnings









Balance at beginning of period


44,223


39,473


40,489


35,452

Impact on adoption of IFRS 9



n/a


53


n/a

Net income attributable to shareholders


2,942


2,677


11,262


10,396

Common dividends


(1,223)


(1,105)


(4,786)


(4,347)

Preferred dividends


(51)


(50)


(214)


(193)

Share issue expenses and others


(6)



(10)


(4)

Net premium on repurchase of common shares and redemption of preferred shares



(427)


(1,273)


(1,140)

Actuarial gains (losses) on employee benefit plans


259


(79)


622


325

Realized gains (losses) on equity securities designated at fair value through other comprehensive income


1


n/a


2


n/a

Balance at end of period


46,145


40,489


46,145


40,489

Accumulated other comprehensive income (loss)









Net unrealized gain (loss) on debt securities at fair value through other comprehensive income:









Balance at beginning of period


343


n/a


510


n/a

Impact on adoption of IFRS 9



n/a


19


n/a

Other comprehensive income (loss)


(97)


n/a


(283)


n/a

Allowance for credit losses


(1)


n/a


(1)


n/a

Balance at end of period


245


n/a


245


n/a

Net unrealized gain (loss) on equity securities designated at fair value through other comprehensive income:









Balance at beginning of period


70


n/a


113


n/a

Impact on adoption of IFRS 9



n/a


(96)


n/a

Other comprehensive income (loss)


(14)


n/a


40


n/a

Reclassification of loss (gain) to retained earnings


(1)


n/a


(2)


n/a

Balance at end of period


55


n/a


55


n/a

Net unrealized gain (loss) on available-for-sale securities:









Balance at beginning of period


n/a


587


n/a


299

Other comprehensive income (loss)


n/a


36


n/a


324

Balance at end of period


n/a


623


n/a


623

Net unrealized foreign currency translation gain (loss) on investments in foreign operations, net of hedging activities:









Balance at beginning of period


8,230


6,153


7,791


9,679

Other comprehensive income (loss)


596


1,638


1,035


(1,888)

Balance at end of period


8,826


7,791


8,826


7,791

Net gain (loss) on derivatives designated as cash flow hedges:









Balance at beginning of period


(2,145)


(176)


(408)


1,856

Other comprehensive income (loss)


(342)


(232)


(2,079)


(2,264)

Balance at end of period


(2,487)


(408)


(2,487)


(408)

Total accumulated other comprehensive income


6,639


8,006


6,639


8,006

Total shareholders' equity


79,047


74,207


79,047


74,207

Non-controlling interests in subsidiaries









Balance at beginning of period


993


1,588


983


1,650

Net income attributable to non-controlling interests in subsidiaries


18


35


72


121

Redemption of REIT preferred shares



(617)



(617)

Other


(18)


(23)


(62)


(171)

Balance at end of period


993


983


993


983

Total equity

$

80,040

$

75,190

$

80,040

$

75,190



1

The amounts for the three months ended October 31, 2018, and October 31, 2017, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2018, and October 31, 2017, have been derived from audited financial statements.

CONSOLIDATED STATEMENT OF CASH FLOWS1









(millions of Canadian dollars)

For the three months ended

For the twelve months ended



October 31

October 31

October 31

October 31



2018

2017

2018

2017

Cash flows from (used in) operating activities









Net income before income taxes, including equity in net income of an investment in TD Ameritrade

$

3,651

$

3,352

$

14,516

$

12,770

Adjustments to determine net cash flows from (used in) operating activities










Provision for credit losses


670


578


2,480


2,216


Depreciation


149


146


576


603


Amortization of other intangibles


217


186


815


704


Net securities losses (gains)


(34)


(41)


(111)


(128)


Equity in net income of an investment in TD Ameritrade


(235)


(103)


(743)


(449)


Dilution gain



(204)



(204)


Deferred taxes


(21)


(19)


385


175

Changes in operating assets and liabilities










Interest receivable and payable


56


3


(104)


(283)


Securities sold under repurchase agreements


(1,220)


10,473


4,798


39,618


Securities purchased (sold) under reverse repurchase agreements


1,640


(14,029)


7,050


(48,377)


Securities sold short


124


676


3,996


2,367


Trading loans and securities


(3,836)


(4,099)


(24,065)


(4,661)


Loans net of securitization and sales


(11,727)


(15,488)


(45,620)


(22,332)


Deposits


19,976


38,173


53,379


40,150


Derivatives


(4,125)


(3,194)


(3,745)


1,836


Non-trading financial assets at fair value through profit or loss


(150)


n/a


5,257


n/a


Financial assets designated at fair value through profit or loss


(372)


(199)


(468)


251


Securitization liabilities


(13)


(290)


(1,532)


(1,575)


Current taxes


121


(308)


(780)


(419)


Brokers, dealers and clients amounts receivable and payable


1,011


2,004


(1,435)


2,459


Other


(4,036)


(3,441)


(8,956)


1,406

Net cash from (used in) operating activities


1,846


14,176


5,693


26,127

Cash flows from (used in) financing activities









Issuance of subordinated notes and debentures


1,750



1,750


1,500

Redemption of subordinated notes and debentures


(31)


(254)


(2,468)


(2,536)

Common shares issued


24


24


128


125

Preferred shares issued


394



740


346

Repurchase of common shares



(517)


(1,501)


(1,397)

Redemption of preferred shares


(250)



(500)


Redemption of non-controlling interests in subsidiaries



(626)



(626)

Sale of treasury shares


2,180


2,575


8,454


9,705

Purchase of treasury shares


(2,160)


(2,722)


(8,424)


(9,829)

Dividends paid


(1,180)


(1,073)


(4,634)


(4,211)

Distributions to non-controlling interests in subsidiaries


(18)


(26)


(72)


(112)

Net cash from (used in) financing activities


709


(2,619)


(6,527)


(7,035)

Cash flows from (used in) investing activities









Interest-bearing deposits with banks


3,858


(5,584)


20,465


2,529

Activities in financial assets at fair value through other comprehensive income










Purchases


(8,091)


n/a


(20,269)


n/a


Proceeds from maturities


7,667


n/a


30,101


n/a


Proceeds from sales


900


n/a


2,731


n/a

Activities in available-for-sale securities










Purchases


n/a


(14,036)


n/a


(63,339)


Proceeds from maturities


n/a


6,541


n/a


30,775


Proceeds from sales


n/a


1,829


n/a


4,977

Activities in debt securities at amortized cost










Purchases


(12,161)


n/a


(51,663)


n/a


Proceeds from maturities


4,357


n/a


20,101


n/a


Proceeds from sales


342


n/a


670


n/a

Activities in held-to-maturity securities










Purchases


n/a


(1,833)


n/a


(17,807)


Proceeds from maturities


n/a


3,687


n/a


27,729


Proceeds from sales


n/a



n/a


452

Activities in debt securities classified as loans










Purchases


n/a


(10)


n/a


(2,471)


Proceeds from maturities


n/a


48


n/a


337


Proceeds from sales


n/a


15


n/a


447

Net purchases of land, buildings, equipment, and other depreciable assets


(261)


(305)


(587)


(434)

Net cash acquired from (paid for) divestitures, acquisitions, and the purchase of TD Ameritrade shares



(2,129)



(2,129)

Net cash from (used in) investing activities


(3,389)


(11,777)


1,549


(18,934)

Effect of exchange rate changes on cash and due from banks


28


78


49


(94)

Net increase (decrease) in cash and due from banks


(806)


(142)


764


64

Cash and due from banks at beginning of period


5,541


4,113


3,971


3,907

Cash and due from banks at end of period

$

4,735

$

3,971

$

4,735

$

3,971

Supplementary disclosure of cash flows from operating activities









Amount of income taxes paid (refunded) during the period

$

504

$

756

$

3,535

$

2,866

Amount of interest paid during the period


4,025


2,384


13,888


8,957

Amount of interest received during the period


9,462


7,505


34,789


28,393

Amount of dividends received during the period


345


242


1,202


1,153



1

The amounts for the three months ended October 31, 2018, and October 31, 2017, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2018, and October 31, 2017, have been derived from audited financial statements.

Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

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 Segment1,2

















(millions of Canadian dollars)





For the three months ended



Canadian Retail

U.S. Retail

Wholesale Banking3,4

Corporate3,4

Total



Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31




2018


2017


2018


2017


2018


2017


2018


2017


2018


2017

Net interest income (loss)

$

3,022

$

2,773

$

2,145

$

1,872

$

273

$

277

$

316

$

408

$

5,756

$

5,330

Non-interest income (loss)


2,830


2,625


713


669


644


417


179


229


4,366


3,940

Total revenue5


5,852


5,398


2,858


2,541


917


694


495


637


10,122


9,270

Provision for (recovery of) credit losses


263


244


244


203


8



155


131


670


578

Insurance claims and related expenses


684


615








684


615

Non-interest expenses


2,530


2,272


1,637


1,529


537


420


648


607


5,352


4,828

Income (loss) before income taxes


2,375


2,267


977


809


372


274


(308)


(101)


3,416


3,249

Provision for (recovery of) income taxes


634


603


91


138


86


43


(120)


(144)


691


640

Equity in net income of an investment in






















TD Ameritrade




228


105




7


(2)


235


103

Net income (loss)

$

1,741

$

1,664

$

1,114

$

776

$

286

$

231

$

(181)

$

41

$

2,960

$

2,712





























For the twelve months ended



Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31

Oct. 31




2018


2017


2018


2017


2018


2017


2018


2017


2018


2017

Net interest income (loss)

$

11,576

$

10,611

$

8,176

$

7,486

$

1,150

$

1,804

$

1,337

$

946

$

22,239

$

20,847

Non-interest income (loss)


11,137


10,451


2,768


2,735


2,309


1,467


381


649


16,595


15,302

Total revenue5


22,713


21,062


10,944


10,221


3,459


3,271


1,718


1,595


38,834


36,149

Provision for (recovery of) credit losses


998


986


917


792


3


(28)


562


466


2,480


2,216

Insurance claims and related expenses


2,444


2,246








2,444


2,246

Non-interest expenses


9,473


8,934


6,100


5,878


2,067


1,929


2,497


2,625


20,137


19,366

Income (loss) before income taxes


9,798


8,896


3,927


3,551


1,389


1,370


(1,341)


(1,496)


13,773


12,321

Provision for (recovery of) income taxes


2,615


2,371


432


671


335


331


(200)


(1,120)


3,182


2,253

Equity in net income of an investment in






















TD Ameritrade




693


442




50


7


743


449

Net income (loss)

$

7,183

$

6,525

$

4,188

$

3,322

$

1,054

$

1,039

$

(1,091)

$

(369)

$

11,334

$

10,517










































As at




Oct. 31


Oct. 31


Oct. 31


Oct. 31


Oct. 31


Oct. 31


Oct. 31


Oct. 31


Oct. 31


Oct. 31




2018


2017


2018


2017


2018


2017


2018


2017


2018


2017

Total assets6

$

433,960

$

404,444

$

417,292

$

403,937

$

425,909

$

406,138

$

57,742

$

64,476

$

1,334,903

$

1,278,995



1

The amounts for the three months ended October 31, 2018, and October 31, 2017, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2018, and October 31, 2017, have been derived from audited financial statements.

2

The retailer program partners' share of revenues and credit losses is presented in the Corporate segment, with an offsetting amount (representing the partners' net share) recorded in Non-interest expenses, resulting in no impact to Corporate reported Net income (loss). The Net income (loss) included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to the Bank under the agreements.

3

Net interest income within Wholesale Banking is calculated on a TEB. The TEB adjustment reflected in Wholesale Banking is reversed in the Corporate segment.

4

Effective February 1, 2017, the total gains and losses as a result of changes in fair value of the CDS and interest rate swap contracts hedging the reclassified financial assets at FVOCI (AFS securities under IAS 39) portfolio are recorded in Wholesale Banking. Previously, these derivatives were accounted for on an accrual basis in Wholesale Banking and the gains and losses related to the derivatives, in excess of the accrued costs were reported in Corporate segment. Refer to Note 29 of the Bank's 2018 Annual Consolidated Financial Statements for additional details.

5

The impact from certain treasury and balance sheet management activities relating to the U.S. Retail segment is recorded in the Corporate segment.

6

Total assets as at October 31, 2018 and October 31, 2017, have been derived from audited financial statements.

The amounts for the three months ended October 31, 2018 and October 31, 2017, have been derived from unaudited financial statements; for the twelve months ended October 31, 2018 and October 31, 2017, the amounts have been derived from audited financial statements.

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:

AST Trust Company (Canada)
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@astfinancial.com or www.astfinancial.com/ca-en

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 505000

Louisville, KY 40233

or

Computershare

462 South 4th Street, Suite 1600

Louisville, KY 40202

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/investor

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 2018 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 2018 free of charge upon request to TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or e-mail tdshinfo@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, supplemental regulatory disclosure, and the 2018 Consolidated Financial Statements and MD&A documents on the TD website at www.td.com/investor/.

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

Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on November 29, 2018. The call will be available live via TD's website at 1:30 p.m. ET. The call and audio webcast will feature presentations by TD executives on the Bank's financial results for the fourth quarter, 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_2018.jsp on November 29, 2018, by approximately 12 p.m. ET. A listen-only telephone line is available at 647-794-1827 or 1-800-949-2175 (toll free) and the passcode is 3108989.

The audio webcast and presentations will be archived at www.td.com/investor/qr_2018.jsp. Replay of the teleconference will be available from 4:30 p.m. ET on November 29, 2018, until 4:30 p.m. ET on December 28, 2018, by calling 647-436-0148 or 1-888-203-1112 (toll free). The passcode is 3108989.

Annual Meeting
Thursday, April 4, 2019
Design Exchange
Toronto, Ontario

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 25 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 more than 12 million active online and mobile customers. TD had $1.3 trillion in assets on October 31, 2018. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.

SOURCE TD Bank Group

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