This quarterly
Earnings News Release should be read in conjunction with the Bank's
unaudited first quarter 2019 Report to Shareholders for the three
months ended January 31, 2019, prepared in accordance with
International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB), which is available
on our website at http://www.td.com/investor/. This analysis is
dated February 27, 2019. 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 Management's
Discussion and Analysis (MD&A) for an explanation of reported
and adjusted results.
|
FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first
quarter last year:
- Reported diluted earnings per share were $1.27, compared with $1.24.
- Adjusted diluted earnings per share were $1.57, compared with $1.56.
- Reported net income was $2,410
million, compared with $2,353
million.
- Adjusted net income was $2,953
million, compared with $2,946
million.
FIRST QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The first
quarter reported earnings figures included the following items of
note:
- Amortization of intangibles of $80
million ($67 million after-tax
or 4 cents per share), compared with
$85 million ($68 million after-tax or 4 cents per share)
in the first quarter last year.
- Charges related to the long-term loyalty agreement with Air
Canada of $607 million ($446 million after-tax or 24 cents per share).
- Charges associated with the acquisition of Greystone of
$31 million ($30 million after-tax or 2
cents per share).
TORONTO, Feb. 28, 2019 /CNW/ - TD Bank Group ("TD" or the
"Bank") today announced its financial results for the first quarter
ended January 31, 2019. First quarter
reported earnings were $2.4 billion,
up 2% on a reported basis and flat on an adjusted basis, compared
with the same quarter last year.
"TD's Retail segments in both Canada and the U.S. had a strong start to the
year, with continued revenue growth and solid earnings. However,
market volatility and lower client activity impacted our Wholesale
segment in the quarter," said Bharat Masrani, Group President and
Chief Executive Officer, TD Bank Group. "TD's diversified business
and geographic mix continues to serve us well and we are focused on
the work ahead to advance our business strategy and innovate to
build new capabilities to serve our over 25 million customers."
The Bank also announced a dividend increase of seven cents per common share for the quarter
ending in April, an increase of 10%.
Canadian Retail
Reported net income for Canadian
Retail was $1,379 million, down 22%
from the first quarter last year. Adjusted net income, which
excludes the Air Canada and Greystone charges above, was
$1,855 million, an increase of 6%
over the first quarter of 2018. Revenue growth was 8%, reflecting
contributions across all businesses. The real estate secured
lending business launched an industry-leading digital mortgage
application and gained market share for the third quarter in a row.
We solidified our position as Canada's leading credit card issuer with our
agreement to become the primary credit card issuer for Air Canada's
new loyalty program and became Canada's largest money manager with the
acquisition of Greystone.
U.S. Retail
U.S. Retail reported net income was
$1,240 million (US$935 million), an increase of 30% (25% in U.S.
dollars) and up 21% (16% in U.S. dollars) on an adjusted basis,
compared with the same quarter last year. TD Ameritrade contributed
$311 million (US$235 million) to the segment this quarter
compared to $106 million in the same
quarter last year.
The U.S. Retail Bank, which excludes the Bank's investment in TD
Ameritrade, reported net income of $929
million (US$700 million), up
10% (5% in U.S. dollars) on a reported basis and 9% (4% in U.S.
dollars) on an adjusted basis, from the same period last year.
Earnings reflect loan and deposit volume growth, and higher
margins. The U.S. Retail Bank remains focused on providing
legendary customer service and making it easier for customers to
bank with us with the roll-out of new customer capabilities such as
Mobile Bill Pay and eSignature.
Wholesale
Wholesale Banking reported a net loss for
the quarter of $17 million, compared
to net earnings of $278 million in
the first quarter last year, reflecting lower trading-related
revenue and origination activity, and higher expenses. Revenue was
down 35% from the same period last year, impacted by challenging
market conditions and reduced client activity. Non-interest
expenses were up 14%, from the same quarter last year due to
continued investment in the global expansion of our U.S. dollar
business and the benefit of a revaluation of certain liabilities
for post-retirement benefits in the prior year, which was partially
offset by lower variable compensation accrual in the current
quarter.
Capital
TD's Common Equity Tier 1 Capital ratio on a
Basel lll fully phased-in basis
was 12%.
Innovation
"New digital capabilities are deepening our
customer relationships, allowing us to offer more personalized and
connected experiences to our growing North American customer base,"
continued Masrani. "We are particularly excited by the launch of TD
Clari, an artificial intelligence powered chatbot that allows our
customers to engage with us in truly differentiated ways."
Conclusion
"We're continuing to invest in our
business, colleauges, and brand, and the dividend increase
announced today further reinforces the confidence we have in our
proven business model," concluded Masrani. "We continue to face
many of the same challenges and opportunities that we identified at
the end of 2018. Subject to these, and assuming the improvements in
market conditions we are now seeing are sustained, we expect our
full-year performance to be closer to the low end of our 7-10 per
cent medium-term target for adjusted EPS growth."
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 key priorities, including the successful
completion of acquisitions and dispositions, business retention
plans, and strategic plans and to attract, develop and retain key
executives; disruptions in or attacks (including cyber-attacks) on
the Bank's information technology, internet, network access or
other voice or data communications systems or services; the
evolution of various types of fraud or other criminal behaviour to
which the Bank is exposed; the failure of third parties to comply
with their obligations to the Bank or its affiliates, including
relating to the care and control of information; the impact of new
and changes to, or application of, current laws and regulations,
including without limitation tax laws, capital guidelines and
liquidity regulatory guidance and the bank recapitalization
"bail-in" regime; exposure related to significant litigation and
regulatory matters; increased competition, including through
internet and mobile banking and non-traditional competitors;
changes to the Bank's credit ratings; changes in currency and
interest rates (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
discussed under the headings "Significant Events" and "Significant
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
HIGHLIGHTS1
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
As at or for the
three months ended
|
|
|
|
January
31
|
|
|
October
31
|
|
|
January
31
|
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Results of
operations
|
|
|
|
|
|
|
|
|
|
Total revenue
|
$
|
9,998
|
|
$
|
10,136
|
|
$
|
9,375
|
|
Provision for credit
losses
|
|
850
|
|
|
670
|
|
|
693
|
|
Insurance claims and
related expenses
|
|
702
|
|
|
684
|
|
|
575
|
|
Non-interest expenses
– reported
|
|
5,855
|
|
|
5,366
|
|
|
4,861
|
|
Non-interest expenses
– adjusted2
|
|
5,161
|
|
|
5,313
|
|
|
4,793
|
|
Net income –
reported
|
|
2,410
|
|
|
2,960
|
|
|
2,353
|
|
Net income –
adjusted2
|
|
2,953
|
|
|
3,048
|
|
|
2,946
|
|
Financial
position (billions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
Total loans net of
allowance for loan losses
|
$
|
648.5
|
|
$
|
646.4
|
|
$
|
607.1
|
|
Total
assets
|
|
1,322.5
|
|
|
1,334.9
|
|
|
1,261.3
|
|
Total
deposits
|
|
849.3
|
|
|
851.4
|
|
|
813.4
|
|
Total
equity
|
|
81.7
|
|
|
80.0
|
|
|
73.2
|
|
Total Common Equity
Tier 1 Capital risk-weighted assets3
|
|
439.3
|
|
|
435.6
|
|
|
441.3
|
|
Financial
ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported
|
|
12.2
|
%
|
|
15.8
|
%
|
|
13.2
|
%
|
Return on common
equity – adjusted4
|
|
15.0
|
|
|
16.3
|
|
|
16.6
|
|
Return on tangible
common equity4
|
|
17.5
|
|
|
22.7
|
|
|
19.4
|
|
Return on tangible
common equity – adjusted4
|
|
21.0
|
|
|
22.9
|
|
|
23.7
|
|
Efficiency ratio –
reported
|
|
58.6
|
|
|
52.9
|
|
|
51.9
|
|
Efficiency ratio –
adjusted2
|
|
51.6
|
|
|
52.4
|
|
|
50.6
|
|
Provision for credit
losses as a % of net average loans
|
|
|
|
|
|
|
|
|
|
and
acceptances5
|
|
0.50
|
|
|
0.41
|
|
|
0.45
|
|
Common share
information – reported (Canadian dollars)
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.27
|
|
$
|
1.58
|
|
$
|
1.24
|
|
Diluted
|
|
1.27
|
|
|
1.58
|
|
|
1.24
|
|
Dividends per
share
|
|
0.67
|
|
|
0.67
|
|
|
0.60
|
|
Book value per
share
|
|
41.69
|
|
|
40.50
|
|
|
36.58
|
|
Closing share
price6
|
|
74.00
|
|
|
73.03
|
|
|
74.82
|
|
Shares outstanding
(millions)
|
|
|
|
|
|
|
|
|
|
Average
basic
|
|
1,833.1
|
|
|
1,826.5
|
|
|
1,841.7
|
|
Average
diluted
|
|
1,836.2
|
|
|
1,830.5
|
|
|
1,846.2
|
|
End of
period
|
|
1,830.8
|
|
|
1,828.3
|
|
|
1,843.7
|
|
Market capitalization
(billions of Canadian dollars)
|
$
|
135.5
|
|
$
|
133.5
|
|
$
|
137.9
|
|
Dividend
yield7
|
|
3.8
|
%
|
|
3.5
|
%
|
|
3.3
|
%
|
Dividend payout
ratio
|
|
52.6
|
|
|
42.3
|
|
|
48.3
|
|
Price-earnings
ratio
|
|
12.3
|
|
|
12.2
|
|
|
13.8
|
|
Total shareholder
return (1 year)8
|
|
2.6
|
|
|
3.1
|
|
|
14.9
|
|
Common share
information – adjusted (Canadian
dollars)2
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.57
|
|
$
|
1.63
|
|
$
|
1.56
|
|
Diluted
|
|
1.57
|
|
|
1.63
|
|
|
1.56
|
|
Dividend payout
ratio
|
|
42.7
|
%
|
|
41.1
|
%
|
|
38.3
|
%
|
Price-earnings
ratio
|
|
11.4
|
|
|
11.3
|
|
|
13.0
|
|
Capital
ratios
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Capital ratio3
|
|
12.0
|
%
|
|
12.0
|
%
|
|
10.6
|
%
|
Tier 1 Capital
ratio3
|
|
13.5
|
|
|
13.7
|
|
|
12.1
|
|
Total Capital
ratio3
|
|
15.9
|
|
|
16.2
|
|
|
14.2
|
|
Leverage
ratio
|
|
4.1
|
|
|
4.2
|
|
|
4.0
|
|
1
|
Certain comparative
amounts have been recast to conform with the presentation adopted
in the current period.
|
2
|
Adjusted measures are
non-GAAP measures. Refer to the "How the Bank Reports" section of
this document for an explanation of reported and adjusted
results.
|
3
|
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 2019, the scalars for inclusion of CVA for Common
Equity Tier 1 (CET1), Tier 1, and Total Capital RWA are all 100%.
For fiscal 2018, the scalars for inclusion were 80%, 83%, and 86%,
respectively. Prior to the second quarter of 2018, as the Bank was
constrained by the Basel I regulatory floor, 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
|
Metrics are non-GAAP
financial measures. Refer to the "Return on Common Equity" and
"Return on Tangible Common Equity" sections of this document for an
explanation.
|
5
|
Excludes acquired
credit-impaired (ACI) loans.
|
6
|
Toronto Stock
Exchange (TSX) closing market price.
|
7
|
Dividend yield is
calculated as the annualized dividend per common share paid divided
by 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 year-to-date – by annualizing the
year-to-date dividend per common share paid.
|
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 Interim
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 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 Interim
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.
|
TABLE 2: OPERATING
RESULTS – Reported1
|
(millions of Canadian
dollars)
|
For the three
months ended
|
|
|
January
31
|
|
October
31
|
|
January
31
|
|
|
2019
|
|
2018
|
|
2018
|
Net interest
income
|
$
|
5,860
|
$
|
5,756
|
$
|
5,430
|
Non-interest
income
|
|
4,138
|
|
4,380
|
|
3,945
|
Total
revenue
|
|
9,998
|
|
10,136
|
|
9,375
|
Provision for credit
losses
|
|
850
|
|
670
|
|
693
|
Insurance claims and
related expenses
|
|
702
|
|
684
|
|
575
|
Non-interest expenses
|
|
5,855
|
|
5,366
|
|
4,861
|
Income before
income taxes and equity in net income of an
|
|
|
|
|
|
|
investment in TD
Ameritrade
|
|
2,591
|
|
3,416
|
|
3,246
|
Provision for income
taxes
|
|
503
|
|
691
|
|
1,040
|
Equity in net income
of an investment in TD Ameritrade
|
|
322
|
|
235
|
|
147
|
Net income –
reported
|
|
2,410
|
|
2,960
|
|
2,353
|
Preferred
dividends
|
|
60
|
|
51
|
|
52
|
Net income
available to common shareholders and
non-controlling
|
|
|
|
|
|
|
interests in
subsidiaries
|
$
|
2,350
|
$
|
2,909
|
$
|
2,301
|
Attributable to:
|
|
|
|
|
|
|
Common
shareholders
|
$
|
2,332
|
$
|
2,891
|
$
|
2,283
|
Non-controlling
interests
|
|
18
|
|
18
|
|
18
|
1
|
Certain comparative
amounts have been recast to conform with the presentation adopted
in the current period.
|
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
Income1
|
(millions of Canadian
dollars)
|
For the three
months ended
|
|
|
January
31
|
|
October 31
|
|
January
31
|
|
|
2019
|
|
2018
|
|
2018
|
Operating results
– adjusted
|
|
|
|
|
|
|
Net interest
income
|
$
|
5,860
|
$
|
5,756
|
$
|
5,430
|
Non-interest
income2
|
|
4,138
|
|
4,380
|
|
4,034
|
Total
revenue
|
|
9,998
|
|
10,136
|
|
9,464
|
Provision for credit
losses
|
|
850
|
|
670
|
|
693
|
Insurance claims and
related expenses
|
|
702
|
|
684
|
|
575
|
Non-interest
expenses3
|
|
5,161
|
|
5,313
|
|
4,793
|
Income before income
taxes and equity in net income of an
|
|
|
|
|
|
|
investment in TD
Ameritrade
|
|
3,285
|
|
3,469
|
|
3,403
|
Provision for income
taxes
|
|
678
|
|
704
|
|
653
|
Equity in net income
of an investment in TD Ameritrade4
|
|
346
|
|
283
|
|
196
|
Net income –
adjusted
|
|
2,953
|
|
3,048
|
|
2,946
|
Preferred
dividends
|
|
60
|
|
51
|
|
52
|
Net income
available to common shareholders and
non-controlling
|
|
|
|
|
|
|
interests in
subsidiaries – adjusted
|
|
2,893
|
|
2,997
|
|
2,894
|
Attributable
to:
|
|
|
|
|
|
|
Non-controlling
interests in subsidiaries, net of income taxes
|
|
18
|
|
18
|
|
18
|
Net income
available to common shareholders –
adjusted
|
|
2,875
|
|
2,979
|
|
2,876
|
Pre-tax
adjustments of items of note
|
|
|
|
|
|
|
Amortization of
intangibles5
|
|
(80)
|
|
(76)
|
|
(85)
|
Charges related to
the long-term loyalty agreement with Air
Canada6
|
|
(607)
|
|
–
|
|
–
|
Charges associated
with the acquisition of Greystone7
|
|
(31)
|
|
–
|
|
–
|
Charges associated
with the Scottrade transaction8
|
|
–
|
|
(25)
|
|
(73)
|
Impact from U.S. tax
reform9
|
|
–
|
|
–
|
|
(48)
|
Provision for
(recovery of) income taxes for items of
note
|
|
|
|
|
|
|
Amortization of
intangibles10
|
|
(13)
|
|
(13)
|
|
(17)
|
Charges related to
the long-term loyalty agreement with Air Canada
|
|
(161)
|
|
–
|
|
–
|
Charges associated
with the acquisition of Greystone
|
|
(1)
|
|
–
|
|
–
|
Charges associated
with the Scottrade transaction
|
|
–
|
|
–
|
|
(1)
|
Impact from U.S. tax
reform9
|
|
–
|
|
–
|
|
405
|
Total adjustments
for items of note
|
|
(543)
|
|
(88)
|
|
(593)
|
Net income
available to common shareholders –
reported
|
$
|
2,332
|
$
|
2,891
|
$
|
2,283
|
1
|
Certain comparative
amounts have been recast to conform with the presentation adopted
in the current period.
|
2
|
Adjusted Non-interest
income excludes the following item of note: Adjustment to the
carrying balances of certain tax credit-related investments, as
explained in footnote 9 – first quarter 2018 – $(89) million. This
amount was reported in the Corporate segment.
|
3
|
Adjusted Non-interest
expenses exclude the following items of note: Amortization of
intangibles, as explained in footnote 5 – first quarter 2019 –
$56 million, fourth quarter 2018 – $53 million, first
quarter 2018 – $63 million; these amounts were reported in the
Corporate segment. Charges related to the long-term loyalty
agreement with Air Canada, as explained in footnote 6 – first
quarter 2019 – $607 million; this amount was reported in the
Canadian Retail segment. Charges associated with the acquisition of
Greystone, as explained in footnote 7 – first quarter 2019 – $31
million; this amount was reported in the Canadian Retail segment.
Charges associated with Scottrade transaction, as explained in
footnote 8 – first quarter 2018 – $5 million; this amount was
reported in the U.S. Retail segment.
|
4
|
Adjusted Equity in
net income of an investment in TD Ameritrade excludes the following
items of note: Amortization of intangibles, as explained in
footnote 5 – first quarter 2019 – $24 million,
fourth quarter 2018 – $23 million, first quarter 2018 –
$22 million; and the Bank's share of TD Ameritrade's deferred
tax balances adjustment, as explained in footnote 9 – first quarter
2018 – $(41) million. The earnings impact of both of these items
was reported in the Corporate segment. The Bank's share of charges
associated with TD Ameritrade's acquisition of Scottrade Financial
Services Inc. ("Scottrade"), as explained in footnote 8 – fourth
quarter 2018 – $25 million, and first quarter 2018 – $68
million. This item was reported in the U.S. Retail
segment.
|
5
|
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.
|
6
|
On January 10, 2019,
the Bank's long-term loyalty program agreement with Air Canada
became effective in conjunction with Air Canada completing its
acquisition of Aimia Canada Inc., which operates the Aeroplan
loyalty business (the "Transaction"). In connection with the
Transaction, the Bank recognized an expense of $607 million ($446
million after-tax) in the Canadian Retail segment.
|
7
|
On November 1, 2018,
the Bank acquired Greystone Capital Management Inc., the parent
company of Greystone Managed Investments Inc. ("Greystone"). The
Bank incurred acquisition related charges including compensation to
employee shareholders issued in common shares in respect of the
purchase price, direct transaction costs, and certain other
acquisition related costs. These amounts have been recorded as an
adjustment to net income and were reported in the Canadian Retail
segment.
|
8
|
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 the 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 were reported in the U.S. Retail segment.
|
9
|
In the first quarter
of 2018, the reduction of the U.S. federal corporate tax rate
enacted by the Tax Cuts and Jobs Act (the "U.S. Tax Act")
resulted in a net charge to earnings 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 net $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 earnings impact was reported in the Corporate
segment.
|
10
|
The amount
reported for the three months ended January 31, 2018 excludes $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
|
|
|
January
31
|
|
October
31
|
|
January
31
|
|
|
2019
|
|
2018
|
|
2018
|
Basic earnings per
share – reported
|
$
|
1.27
|
$
|
1.58
|
$
|
1.24
|
Adjustments for items
of note2
|
|
0.30
|
|
0.05
|
|
0.32
|
Basic earnings per
share – adjusted
|
$
|
1.57
|
$
|
1.63
|
$
|
1.56
|
|
|
|
|
|
|
|
Diluted earnings
per share – reported
|
$
|
1.27
|
$
|
1.58
|
$
|
1.24
|
Adjustments for items
of note2
|
|
0.30
|
|
0.05
|
|
0.32
|
Diluted earnings
per share – adjusted
|
$
|
1.57
|
$
|
1.63
|
$
|
1.56
|
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.
|
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. For fiscal
2019, the capital allocated to the business segments is based on
10% CET1 Capital. Capital allocated to the business segments was
based on 9% for fiscal 2018.
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 as it is not a
defined term under IFRS. Readers are cautioned that earnings and
other measures adjusted to a basis other than IFRS do not have
standardized meanings under IFRS and, therefore, may not be
comparable to similar terms used by other issuers.
|
|
TABLE 5: RETURN ON
COMMON EQUITY
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
|
|
January
31
|
|
|
October 31
|
|
|
January 31
|
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Average common
equity
|
$
|
75,873
|
|
$
|
72,461
|
|
$
|
68,614
|
|
Net income
available to common shareholders –
reported
|
|
2,332
|
|
|
2,891
|
|
|
2,283
|
|
Items of note, net of
income taxes1
|
|
543
|
|
|
88
|
|
|
593
|
|
Net income
available to common shareholders –
adjusted
|
|
2,875
|
|
|
2,979
|
|
|
2,876
|
|
Return on common
equity – reported
|
|
12.2
|
%
|
|
15.8
|
%
|
|
13.2
|
%
|
Return on common
equity – adjusted
|
|
15.0
|
|
|
16.3
|
|
|
16.6
|
|
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 6: RETURN ON
TANGIBLE COMMON EQUITY
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
|
|
January
31
|
|
|
October 31
|
|
|
January 31
|
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Average common
equity
|
$
|
75,873
|
|
$
|
72,461
|
|
$
|
68,614
|
|
Average
goodwill
|
|
17,021
|
|
|
16,390
|
|
|
15,902
|
|
Average imputed
goodwill and intangibles on an
|
|
|
|
|
|
|
|
|
|
investment in TD
Ameritrade
|
|
4,170
|
|
|
4,100
|
|
|
4,083
|
|
Average other
acquired intangibles1
|
|
676
|
|
|
597
|
|
|
757
|
|
Average related
deferred tax liabilities
|
|
(238)
|
|
|
(219)
|
|
|
(283)
|
|
Average tangible
common equity
|
|
54,244
|
|
|
51,593
|
|
|
48,155
|
|
Net income
available to common shareholders –
reported
|
|
2,332
|
|
|
2,891
|
|
|
2,283
|
|
Amortization of
acquired intangibles, net of income
taxes2
|
|
67
|
|
|
63
|
|
|
68
|
|
Net income
available to common shareholders after
|
|
|
|
|
|
|
|
|
|
adjusting for
after-tax amortization of acquired
intangibles
|
|
2,399
|
|
|
2,954
|
|
|
2,351
|
|
Other items of note,
net of income taxes2
|
|
476
|
|
|
25
|
|
|
525
|
|
Net income
available to common shareholders –
adjusted
|
$
|
2,875
|
|
$
|
2,979
|
|
$
|
2,876
|
|
Return on tangible
common equity
|
|
17.5
|
%
|
|
22.7
|
%
|
|
19.4
|
%
|
Return on tangible
common equity – adjusted
|
|
21.0
|
|
|
22.9
|
|
|
23.7
|
|
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. Depreciation of the
Canadian dollar had a favourable impact on U.S. Retail segment
earnings for the three months ended January 31, 2019, compared
with the same period last year, as shown in the following
table.
|
TABLE 7: IMPACT OF
FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT TRANSLATED
EARNINGS
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
|
|
January 31, 2019
vs.
|
|
|
January 31,
2018
|
|
|
Increase
(Decrease)
|
U.S. Retail
Bank
|
|
|
|
|
Total
revenue
|
|
|
$
|
145
|
Non-interest
expenses
|
|
|
|
79
|
Net income –
after-tax
|
|
|
|
46
|
Equity in net income
on an investment in TD Ameritrade
|
|
|
|
11
|
U.S. Retail
segment decreased net income – after-tax
|
|
|
|
57
|
Earnings per
share (Canadian dollars)
|
|
|
|
|
Basic
|
|
|
$
|
0.03
|
Diluted
|
|
|
|
0.03
|
On a trailing twelve-month basis, a one
cent appreciation/depreciation in the U.S. dollar to
Canadian dollar average exchange rate would have
increased/decreased U.S. Retail segment net income by
approximately $60 million.
SIGNIFICANT EVENTS IN 2019
Agreement for Air Canada Credit Card Loyalty
Program
On January 10, 2019,
the Bank's long-term loyalty program agreement (the "Loyalty
Agreement") with Air Canada became effective in conjunction with
Air Canada completing its acquisition of Aimia Canada Inc., which
operates the Aeroplan loyalty business (the "Transaction"). 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. 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.
In connection with the Transaction, the Bank paid $622 million plus applicable sales tax to Air
Canada, of which $547 million
($446 million after sales and income
taxes) was recognized in non-interest expenses – other in the
Canadian Retail segment, and $75
million was recognized as an intangible asset which will be
amortized over the Loyalty Agreement term. In addition, the Bank
prepaid $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 Transaction reduced the Bank's CET1 ratio by
approximately 13 basis points (bps).
Acquisition of Greystone
On November 1, 2018, the Bank acquired 100% of the
outstanding equity of 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 have
been 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.
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 Bank's 2018
MD&A, and Note 29 Segmented Information of the Bank's
Consolidated Financial Statements for the year ended October 31, 2018. For information concerning the
Bank's measure of ROE, which is a non-GAAP financial measure, refer
to the "How We Performed" section of this document.
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.
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 certain 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 $21 million,
compared with $105 million in the first quarter last year and
$28 million in the prior quarter.
|
TABLE 8: CANADIAN
RETAIL
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
|
|
|
|
January
31
|
|
|
October
31
|
|
|
January
31
|
|
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Net interest
income
|
$
|
3,044
|
|
$
|
3,022
|
|
$
|
2,825
|
|
Non-interest
income
|
|
2,944
|
|
|
2,830
|
|
|
2,725
|
|
Total
revenue
|
|
5,988
|
|
|
5,852
|
|
|
5,550
|
|
Provision for credit
losses – impaired
|
|
264
|
|
|
245
|
|
|
237
|
|
Provision for credit
losses – performing
|
|
46
|
|
|
18
|
|
|
33
|
|
Total provision for
credit losses
|
|
310
|
|
|
263
|
|
|
270
|
|
Insurance claims and
related expenses
|
|
702
|
|
|
684
|
|
|
575
|
|
Non-interest expenses
– reported
|
|
3,084
|
|
|
2,530
|
|
|
2,311
|
|
Non-interest expenses
– adjusted1
|
|
2,446
|
|
|
2,530
|
|
|
2,311
|
|
Provision for
(recovery of) income taxes – reported
|
|
513
|
|
|
634
|
|
|
637
|
|
Provision for
(recovery of) income taxes – adjusted1
|
|
675
|
|
|
634
|
|
|
637
|
|
Net income –
reported
|
|
1,379
|
|
|
1,741
|
|
|
1,757
|
|
Net income –
adjusted1
|
$
|
1,855
|
|
$
|
1,741
|
|
$
|
1,757
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported2
|
|
31.6
|
%
|
|
45.1
|
%
|
|
47.2
|
%
|
Return on common
equity – adjusted1,2
|
|
42.5
|
|
|
45.1
|
|
|
47.2
|
|
Net interest margin
(including on securitized assets)
|
|
2.94
|
|
|
2.94
|
|
|
2.88
|
|
Efficiency ratio –
reported
|
|
51.5
|
|
|
43.2
|
|
|
41.6
|
|
Efficiency ratio –
adjusted
|
|
40.8
|
|
|
43.2
|
|
|
41.6
|
|
Assets under
administration (billions of Canadian dollars)
|
$
|
396
|
|
$
|
389
|
|
$
|
397
|
|
Assets under
management (billions of Canadian dollars)
|
|
332
|
|
|
289
|
|
|
289
|
|
Number of Canadian
retail branches
|
|
1,099
|
|
|
1,098
|
|
|
1,129
|
|
Average number of
full-time equivalent staff
|
|
39,997
|
|
|
39,283
|
|
|
38,050
|
|
1
|
Adjusted non-interest
expenses excludes the following items of note: Charges related to
the long-term loyalty agreement with Air Canada in the first
quarter 2019 – $607 million ($446 million after-tax); and
charges associated with the acquisition of Greystone in the first
quarter 2019 – $31 million ($30 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.
|
2
|
Capital allocated to
the business segment was based on 10% CET1 Capital in fiscal 2019
and 9% in fiscal 2018.
|
Quarterly comparison – Q1 2019 vs. Q1 2018
Canadian Retail reported net income for the quarter was
$1,379 million, a decrease of
$378 million, or 22%, compared with
the first quarter last year, reflecting charges related to the
agreement with Air Canada and the acquisition of Greystone, higher
other non-interest expenses, insurance claims, and PCL, partially
offset by revenue growth. On an adjusted basis, net income for the
quarter was $1,855 million, an
increase of $98 million, or 6%. The
reported and adjusted annualized ROE for the quarter was 31.6% and
42.5% respectively, compared with 47.2% in the first quarter last
year.
Canadian Retail revenue is derived from Canadian personal and
commercial banking, wealth, and insurance businesses. Revenue for
the quarter was $5,988 million,
an increase of $438 million, or 8%, compared with the first
quarter last year.
Net interest income was $3,044
million, an increase of $219 million, or 8%, reflecting
volume growth and higher margins. Average loan volumes increased
$24 billion, or 6%, reflecting 5% growth in personal loans and
9% growth in business loans. Average deposit volumes increased
$8 billion, or 3%, reflecting 3% growth in both personal and
business deposits, partially offset by a 1% decrease in wealth
deposits. Net interest margin was 2.94%, an increase of 6 bps,
reflecting rising interest rates, partially offset by lower margins
on loans and a refinement in treasury allocation methodology.
Non-interest income was $2,944
million, an increase of $219
million, or 8%, reflecting higher revenues from the
insurance business, higher fee-based revenue in the banking
businesses, and the acquisition of Greystone. The increase in
non-interest income also includes $60
million related to higher fair value of investments
supporting claims liabilities, which resulted in a similar increase
to insurance claims.
Assets under administration (AUA) were $396 billion as at January 31, 2019, in line
with the first quarter last year. Assets under management (AUM)
were $332 billion as at January 31, 2019, an increase of
$43 billion, or 15%, compared with the first quarter last
year, reflecting the acquisition of Greystone, increases in market
value, and new asset growth.
PCL was $310 million, an increase
of $40 million, or 15%, compared with
the first quarter last year. PCL – impaired for the quarter was
$264 million, an increase of
$27 million, or 11%, primarily in the
personal lending portfolios, and a prior year change in methodology
regarding the timing of loss recognition in the indirect auto
portfolio. PCL – performing was $46
million, an increase of $13
million, reflecting volume growth, and credit migration in
the commercial portfolio, partially offset by the impact of a
change in macroeconomic assumptions in the prior year. Total
PCL as an annualized percentage of credit volume was 0.29%, or an
increase of 2 bps.
Insurance claims and related expenses for the quarter were
$702 million, an increase of
$127 million, or 22%, compared with the first quarter last
year reflecting changes in the fair value of investments supporting
claims liabilities, increases in reinsurance claims assumed, less
favourable prior years' claims development and higher current year
claims, partially offset by the impact of changes to actuarial
assumptions in the life and health business.
Reported non-interest expenses for the quarter were $3,084 million, an increase of $773 million, or 33%, compared with the first
quarter last year, reflecting charges related to the agreement with
Air Canada and the acquisition of Greystone, higher spend on
strategic initiatives, and additional employees supporting business
growth. On an adjusted basis, non-interest expenses were
$2,446 million, an increase of
$135 million, or 6%.
The reported and adjusted efficiency ratio for the quarter was
51.5% and 40.8% respectively, compared with 41.6% in the first
quarter last year.
Quarterly comparison – Q1 2019 vs. Q4 2018
Canadian Retail reported net income for the quarter decreased
$362 million, or 21%, compared with
the prior quarter. The decrease in earnings reflects charges
related to the agreement with Air Canada and the acquisition of
Greystone, higher insurance claims and PCL, partially offset by
revenue growth, and lower other non-interest expenses. On an
adjusted basis, net income increased $114
million, or 7%. The reported and adjusted annualized ROE for
the quarter was 31.6% and 42.5% respectively, compared with 45.1%
in the prior quarter.
Revenue increased $136 million, or
2%, compared with the prior quarter. Net interest income increased
$22 million, or 1%, reflecting volume
growth. Average loan volumes increased $4
billion, or 1%, reflecting 1% growth in both personal and
business loans. Average deposit volumes increased $3 billion,
or 1%, reflecting 1% growth in both personal and wealth deposits,
while business deposits were relatively consistent with the prior
quarter. Net interest margin was 2.94%, consistent with the prior
quarter, reflecting rising interest rates offset by lower margins
on loans and a refinement in treasury allocation methodology.
Non-interest income increased $114
million, or 4%, reflecting higher revenues from the
insurance business, higher fee-based revenue in the banking
businesses, and the acquisition of Greystone. The increase in
non-interest income also includes $69
million related to higher fair value of investments
supporting claims liabilities, which resulted in a similar increase
to insurance claims.
AUA increased $7 billion, or 2%, compared with the prior
quarter, reflecting new asset growth, and increases in market
value. AUM increased $43 billion, or 15%, reflecting the
acquisition of Greystone, increases in market value, and new asset
growth.
PCL increased $47 million, or 18%,
compared with the prior quarter. PCL – impaired increased by
$19 million, or 8%, primarily in the
personal lending portfolios. PCL – performing increased
$28 million due to credit migration
in the personal lending and commercial portfolios. Total PCL as an
annualized percentage of credit volume was 0.29%, or an increase of
4 bps.
Insurance claims and related expenses for the quarter increased
$18 million, or 3%, compared with the prior quarter reflecting
changes in the fair value of investments supporting claims
liabilities and less favourable prior years' claims development,
partially offset by lower current year claims, less severe
weather-related events, and the impact of changes to actuarial
assumptions in the life and health
business.
Reported non-interest expenses increased $554 million, or
22%, compared with the prior quarter, reflecting charges related to
the agreement with Air Canada and the acquisition of Greystone, and
additional employees supporting business growth, partially offset
by higher spend related to marketing and promotion in the prior
quarter. On an adjusted basis, non-interest expenses decreased
$84 million, or 3%.
The reported and adjusted efficiency ratio for the quarter was
51.5% and 40.8% respectively, compared with 43.2% in the prior
quarter.
|
TABLE 9: U.S.
RETAIL
|
(millions of dollars,
except as noted)
|
For the three
months ended
|
|
|
|
|
January
31
|
|
|
October
31
|
|
|
January
31
|
|
Canadian
Dollars
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Net interest
income
|
$
|
2,247
|
|
$
|
2,145
|
|
$
|
1,940
|
|
Non-interest
income1
|
|
701
|
|
|
713
|
|
|
703
|
|
Total
revenue
|
|
2,948
|
|
|
2,858
|
|
|
2,643
|
|
Provision for credit
losses – impaired
|
|
285
|
|
|
205
|
|
|
187
|
|
Provision for credit
losses – performing
|
|
21
|
|
|
39
|
|
|
60
|
|
Total provision for
credit losses
|
|
306
|
|
|
244
|
|
|
247
|
|
Non-interest expenses
– reported
|
|
1,611
|
|
|
1,637
|
|
|
1,447
|
|
Non-interest expenses
– adjusted2
|
|
1,611
|
|
|
1,637
|
|
|
1,442
|
|
Provision for
(recovery of) income taxes – reported1
|
|
102
|
|
|
91
|
|
|
103
|
|
Provision for
(recovery of) income taxes – adjusted1,2
|
|
102
|
|
|
91
|
|
|
104
|
|
U.S. Retail Bank
net income – reported
|
|
929
|
|
|
886
|
|
|
846
|
|
U.S. Retail Bank
net income – adjusted2
|
|
929
|
|
|
886
|
|
|
850
|
|
Equity in net income
of an investment in TD Ameritrade –
reported1,3
|
|
311
|
|
|
228
|
|
|
106
|
|
Equity in net income
of an investment in TD Ameritrade –
adjusted1,4
|
|
311
|
|
|
253
|
|
|
174
|
|
Net income –
reported
|
|
1,240
|
|
|
1,114
|
|
|
952
|
|
Net income –
adjusted
|
$
|
1,240
|
|
$
|
1,139
|
|
$
|
1,024
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
1,688
|
|
$
|
1,646
|
|
$
|
1,533
|
|
Non-interest
income1
|
|
528
|
|
|
547
|
|
|
555
|
|
Total revenue –
reported
|
|
2,216
|
|
|
2,193
|
|
|
2,088
|
|
Provision for credit
losses – impaired
|
|
214
|
|
|
157
|
|
|
148
|
|
Provision for credit
losses – performing
|
|
16
|
|
|
30
|
|
|
47
|
|
Total provision for
credit losses
|
|
230
|
|
|
187
|
|
|
195
|
|
Non-interest expenses
– reported
|
|
1,209
|
|
|
1,256
|
|
|
1,144
|
|
Non-interest expenses
– adjusted2
|
|
1,209
|
|
|
1,256
|
|
|
1,140
|
|
Provision for
(recovery of) income taxes – reported1
|
|
77
|
|
|
70
|
|
|
80
|
|
Provision for
(recovery of) income taxes – adjusted1,2
|
|
77
|
|
|
70
|
|
|
81
|
|
U.S. Retail Bank
net income – reported
|
|
700
|
|
|
680
|
|
|
669
|
|
U.S. Retail Bank
net income – adjusted2
|
|
700
|
|
|
680
|
|
|
672
|
|
Equity in net income
of an investment in TD Ameritrade –
reported1,3
|
|
235
|
|
|
175
|
|
|
82
|
|
Equity in net income
of an investment in TD Ameritrade –
adjusted1,4
|
|
235
|
|
|
194
|
|
|
137
|
|
Net income –
reported
|
|
935
|
|
|
855
|
|
|
751
|
|
Net income –
adjusted
|
$
|
935
|
|
$
|
874
|
|
$
|
809
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported5
|
|
12.6
|
%
|
|
12.8
|
%
|
|
11.2
|
%
|
Return on common
equity – adjusted2,4,5
|
|
12.6
|
|
|
13.0
|
|
|
12.0
|
|
Net interest
margin6
|
|
3.42
|
|
|
3.33
|
|
|
3.19
|
|
Efficiency ratio –
reported
|
|
54.6
|
|
|
57.3
|
|
|
54.8
|
|
Efficiency ratio –
adjusted
|
|
54.6
|
|
|
57.3
|
|
|
54.6
|
|
Assets under
administration (billions of U.S. dollars)
|
$
|
19
|
|
$
|
19
|
|
$
|
19
|
|
Assets under
management (billions of U.S. dollars)
|
|
46
|
|
|
52
|
|
|
65
|
|
Number of U.S. retail
stores
|
|
1,240
|
|
|
1,257
|
|
|
1,244
|
|
Average number of
full-time equivalent staff
|
|
26,864
|
|
|
27,015
|
|
|
26,168
|
|
1
|
In the first quarter
of 2018, the reduction of the U.S. federal corporate tax rate
enacted by the U.S. Tax Act resulted in an adjustment 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 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.
|
2
|
Adjusted U.S. Retail
Bank net income excludes the following item of note: Charges
associated with the Bank's acquisition of Scottrade Bank in the
first quarter 2018 – $5 million ($4 million after-tax) or US$4
million (US$3 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.
|
3
|
The after-tax amounts
for amortization of intangibles relating to the Equity in net
income of the investment in TD Ameritrade is recorded in the
Corporate segment with other acquired intangibles.
|
4
|
Adjusted equity in
net income of an investment in TD Ameritrade in the prior year
excludes the following items of note: The Bank's share of charges
associated with TD Ameritrade's acquisition of Scottrade in the
fourth quarter 2018 – $25 million or US$19 million after-tax and
first quarter 2018 – $68 million or US$55 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.
|
5
|
Capital allocated to
the business segment was based on 10% CET1 Capital in fiscal 2019
and 9% in fiscal 2018.
|
6
|
Net interest margin
excludes the impact related to the TD Ameritrade insured deposit
accounts (IDA) 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 – Q1 2019 vs. Q1 2018
U.S. Retail reported net income for the quarter was $1,240 million (US$935
million), an increase of $288
million (US$184 million), or
30% (25% in U.S. dollars), compared with the first quarter last
year. On an adjusted basis, net income for the quarter was
$1,240 million (US$935 million), an increase of $216 million (US$126
million), or 21% (16% in U.S. dollars). The reported and
adjusted annualized ROE for the quarter was 12.6%, compared with
11.2% and 12.0%, respectively, in the first 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 $929 million (US$700
million). Reported and adjusted net income for the quarter
from the Bank's investment in TD Ameritrade was $311 million (US$235
million).
The reported contribution from TD Ameritrade of US$235 million, an increase of US$153 million, compared with the first quarter
last year, primarily due to higher asset-based revenue and
increased trading volumes. Adjusted contribution from TD Ameritrade
increased US$98 million, or 72%.
U.S. Retail Bank reported net income of US$700 million for the quarter increased
US$31 million, or 5%, due to higher
revenue, partially offset by higher expenses and PCL. U.S. Retail
Bank adjusted net income increased US$28
million, or 4%.
U.S. Retail Bank revenue is derived from personal and business
banking, and wealth management. Revenue for the quarter was
US$2,216 million, an increase of
US$128 million, or 6%, compared with
the first quarter last year. Net interest income increased
US$155 million, or 10%, reflecting
higher deposit margins and growth in loan and deposit volumes. Net
interest margin was 3.42%, an increase of 23 bps, primarily due to
higher deposit margins and balance sheet mix. Non-interest income
decreased US$27 million, or 5%,
reflecting lower contribution from low income housing investments
and wealth management fee income due to lower AUM.
Average loan volumes increased US$5
billion, or 3%, compared with the first quarter last year
due to growth in business and personal loans of 4% and 3%,
respectively. Average deposit volumes increased US$5 billion, or 2%, reflecting 5% growth in
business deposit volumes, 3% growth in personal deposit volumes,
and 1% decrease in sweep deposit volume.
AUA were US$19 billion as at
January 31, 2019, flat compared with
the first quarter last year. AUM were US$46
billion as at January 31, 2019, a decrease of
US$19 billion, or 29%, reflecting net
fund outflows including the impact of the strategic disposition of
U.S. money market funds and negative market impact.
PCL for the quarter was US$230
million, an increase of US$35
million, or 18%, compared with the first quarter last year.
PCL – impaired was US$214 million, an increase of US$66 million, or 45%, reflecting higher
provisions primarily attributable to the power and utilities
sector, coupled with volume growth, seasoning, and mix in the
credit card portfolio. PCL – performing was US$16 million, a
decrease of US$31 million, or 66%, primarily reflecting
migration from performing to impaired in the commercial portfolio.
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 0.59%, or an increase of
7 bps.
Reported non-interest expenses for the quarter were US$1,209 million, an increase of US$65 million, or 6%, compared with the first
quarter last year, reflecting higher investments in business
initiatives, business volume growth, and higher employee-related
costs, partially offset by productivity savings and the elimination
of the Federal Deposit Insurance Corporation (FDIC) deposit
insurance surcharge. On an adjusted basis, non-interest expenses
increased US$69 million, or
6%.
The reported and adjusted efficiency ratio for the quarter was
54.6%, compared with 54.8% and 54.6%, respectively, in the first
quarter last year.
Quarterly comparison – Q1 2019 vs. Q4 2018
U.S. Retail reported net income of $1,240
million (US$935 million)
increased $126 million (US$80 million), or 11% (9% in U.S. dollars),
compared with the prior quarter, while adjusted net income of
$1,240 million (US$935 million) increased $101 million (US$61
million), or 9% (7% in U.S. dollars). The reported and
adjusted annualized ROE for the quarter was 12.6%, compared with
12.8% and 13.0%, respectively, in the prior quarter.
The reported contribution from TD Ameritrade was US$235 million, an increase of US$60 million, or 34%, compared with the prior
quarter, primarily due to higher asset-based revenue and increased
trading volumes. Adjusted contribution from TD Ameritrade was
US$235 million, an increase of
US$41 million, or 21%.
U.S. Retail Bank net income for the quarter was US$700 million, an increase of US$20 million, or 3%, compared with the prior
quarter, due to higher revenue and lower expenses, partially offset
by higher PCL.
Revenue for the quarter increased US$23
million, or 1%, compared with the prior quarter. Net
interest income increased US$42
million, or 3%, due to growth in loan and deposit volumes
and higher deposit margins. Net interest margin was 3.42%, an
increase of 9 bps, primarily due to higher deposit margins and
balance sheet mix. Non-interest income decreased US$19 million, or 3%, reflecting lower personal
banking and wealth management fee income.
Average loan volumes increased US$4
billion, or 2%, compared with prior quarter, due to growth
in business and personal loans of 3% and 2%, respectively. Average
deposit volumes increased US$2
billion, or 1%, due to growth in personal and sweep deposit
volumes.
AUA were US$19 billion as at
January 31, 2019, flat to prior
quarter. AUM were US$46 billion as at
January 31, 2019, a decrease of
US$6 billion, or 12%, reflecting net
fund outflows including the impact of the strategic disposition of
U.S. money market funds.
PCL for the quarter increased US$43
million, or 23%, compared with the prior
quarter. PCL – impaired was US$214
million, an increase of US$57
million, or 36%, primarily reflecting higher provisions for
the commercial portfolio, coupled with seasonal trends in the
credit card and auto portfolios. PCL – performing was
US$16 million, a decrease of US$14
million, or 47%, primarily reflecting migration from
performing to impaired in the commercial portfolio, partially
offset by seasonal trends in the credit card and auto 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 0.59%, or an increase of
9 bps.
Non-interest expenses for the quarter were US$1,209 million, a decrease of US$47 million, or 4%, compared with the prior
quarter, reflecting the elimination of the FDIC deposit insurance
surcharge and timing of investment spending.
The efficiency ratio for the quarter was 54.6%, compared with
57.3% in the prior quarter.
|
TABLE 10:
WHOLESALE BANKING1
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
|
|
January
31
|
|
|
October
31
|
|
|
January
31
|
|
|
|
2019
|
|
|
2018
|
|
|
2018
|
|
Net interest income
(TEB)
|
$
|
173
|
|
$
|
273
|
|
$
|
329
|
|
Non-interest
income
|
|
409
|
|
|
658
|
|
|
561
|
|
Total
revenue
|
|
582
|
|
|
931
|
|
|
890
|
|
Provision for
(recovery of) credit losses – impaired
|
|
–
|
|
|
–
|
|
|
–
|
|
Provision for
(recovery of) credit losses – performing
|
|
7
|
|
|
8
|
|
|
(7)
|
|
Total provision for
(recovery of) credit losses
|
|
7
|
|
|
8
|
|
|
(7)
|
|
Non-interest
expenses
|
|
602
|
|
|
551
|
|
|
526
|
|
Provision for
(recovery of) income taxes (TEB)2
|
|
(10)
|
|
|
86
|
|
|
93
|
|
Net income
(loss)
|
$
|
(17)
|
|
$
|
286
|
|
$
|
278
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Trading-related
revenue (TEB)
|
$
|
251
|
|
$
|
484
|
|
$
|
515
|
|
Gross drawn (billions
of Canadian dollars)3
|
|
23.4
|
|
|
23.9
|
|
|
19.5
|
|
Return on common
equity4
|
|
(0.9)
|
%
|
|
18.4
|
%
|
|
20.1
|
%
|
Efficiency
ratio
|
|
103.4
|
|
|
59.2
|
|
|
59.1
|
|
Average number of
full-time equivalent staff
|
|
4,478
|
|
|
4,426
|
|
|
4,027
|
|
1
|
Certain comparative
amounts have been recast to conform with the presentation adopted
in the current period.
|
2
|
In the first quarter
of 2018, the reduction of the U.S. federal corporate tax rate
enacted by the U.S. Tax Act resulted in a one-time adjustment 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.
|
3
|
Includes gross loans
and bankers' acceptances, excluding letters of credit, cash
collateral, credit default swaps (CDS), and allowance for credit
losses relating to the corporate lending business.
|
4
|
Capital allocated to
the business segment was based on 10% CET1 Capital in fiscal 2019
and 9% in fiscal 2018.
|
Quarterly comparison – Q1 2019 vs. Q1 2018
Wholesale Banking net loss for the quarter was $17 million, a decrease in net income of
$295 million, compared with net
income of $278 million in the first
quarter last year, reflecting lower revenue, higher PCL, and higher
non-interest expenses.
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 $582
million, a decrease of $308
million, compared with the first quarter last year,
reflecting challenging market conditions. The volatility in rates,
equity and credit markets resulted in a difficult trading
environment, reduced client activity and a meaningful slowdown in
debt and equity underwriting, particularly in Canada. Trading margins declined reflecting
yield compression on high quality assets relative to funding
costs.
With market volatility and client activity slowly returning to
normal levels, and subject to the same market conditions and other
factors discussed in our 2018 MD&A, we are cautiously
optimistic that revenue will improve over the remainder of the
year; however, we no longer anticipate full year 2019 revenue to
exceed 2018 levels.
PCL for the quarter was $7
million, compared to a benefit of $7
million in the first quarter last year. PCL – performing
increased by $14 million, reflecting
prior year credit risk improvement in the oil and gas sector.
Non-interest expenses were $602
million, an increase of $76
million, or 14%, compared with the first quarter last year.
This increase reflects the benefit of revaluation of certain
liabilities for post-retirement benefits recognized in the prior
year, continued investments in employees supporting the global
expansion of Wholesale Banking's U.S. dollar strategy, and the
impact of foreign exchange translation, partially offset by lower
variable compensation accrual this quarter.
Quarterly comparison – Q1 2019 vs. Q4 2018
Wholesale Banking net loss for the quarter was $17 million, a decrease in net income of
$303 million, compared with net
income of $286 million in the prior
quarter, reflecting lower revenue and higher non-interest
expenses.
Revenue for the quarter decreased $349
million, compared with the prior quarter, reflecting
challenging market conditions. The volatility in rates, equity and
credit markets resulted in a difficult trading environment, reduced
client activity and a meaningful slowdown in debt and equity
underwriting, particularly in Canada. Trading margins declined reflecting
yield compression on high quality assets relative to funding
costs.
PCL for the quarter was $7
million, compared with $8
million in the prior quarter.
Non-interest expenses for the quarter increased $51 million, or 9%, compared with the prior
quarter, reflecting continued investments in employees supporting
the global expansion of Wholesale Banking's U.S. dollar strategy,
timing of employee-related costs, and the impact of foreign
exchange translation.
|
TABLE 11:
CORPORATE
|
(millions of Canadian
dollars)
|
For the three
months ended
|
|
|
January
31
|
|
October
31
|
|
January
31
|
|
|
2019
|
|
2018
|
|
2018
|
Net income (loss)
– reported1
|
$
|
(192)
|
$
|
(181)
|
$
|
(634)
|
Pre-tax
adjustments for items of note2
|
|
|
|
|
|
|
Amortization of
intangibles
|
|
80
|
|
76
|
|
85
|
Impact from U.S. tax
reform1
|
|
–
|
|
–
|
|
48
|
Total pre-tax
adjustments for items of note
|
|
80
|
|
76
|
|
133
|
Provision for
(recovery of) income taxes for items of
note1
|
|
13
|
|
13
|
|
(388)
|
Net income (loss)
– adjusted
|
$
|
(125)
|
$
|
(118)
|
$
|
(113)
|
|
|
|
|
|
|
|
Decomposition of
items included in net income (loss) – adjusted
|
|
|
|
|
|
|
Net corporate
expenses
|
$
|
(182)
|
$
|
(221)
|
$
|
(198)
|
Other
|
|
39
|
|
85
|
|
67
|
Non-controlling
interests
|
|
18
|
|
18
|
|
18
|
Net income (loss)
– adjusted
|
$
|
(125)
|
$
|
(118)
|
$
|
(113)
|
|
|
|
|
|
|
|
Selected
volumes
|
|
|
|
|
|
|
Average number of
full-time equivalent staff
|
|
16,229
|
|
15,864
|
|
14,336
|
1
|
In the first quarter
of 2018, the reduction of the U.S. federal corporate tax rate
enacted by the U.S. Tax Act resulted in a net charge to earnings 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 net $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.
|
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.
|
Quarterly comparison – Q1 2019 vs. Q1 2018
Corporate segment's reported net loss for the quarter was
$192 million, compared with a
reported net loss of $634 million in
the first quarter last year. Reported net loss decreased primarily
reflecting the impact of U.S. tax reform during the first quarter
of 2018, lower net corporate expenses this quarter, partially
offset by lower contribution from Other items. Other items
decreased primarily reflecting lower revenue from treasury and
balance sheet management activities in the first quarter this year.
Net corporate expenses were lower largely reflecting lower pension
and compensation-related expenses in the first quarter this year.
Adjusted net loss was $125 million
compared with an adjusted net loss of $113
million in the first quarter last year.
Quarterly comparison – Q1 2019 vs. Q4 2018
Corporate segment's reported net loss for the quarter was
$192 million, compared with a
reported net loss of $181 million in
the prior quarter. Reported net loss increased primarily reflecting
lower contribution from Other items, partially offset by lower net
corporate expenses in the current quarter. Other items decreased
primarily reflecting lower revenue from treasury and balance sheet
management activities in the current quarter. Net corporate
expenses decreased largely reflecting lower pension expenses in the
current quarter. Adjusted net loss was $125
million compared with an adjusted net loss of $118 million in the prior quarter.
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
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or
Computershare
462 South
4th Street, Suite 1600
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40202
1-866-233-4836
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impaired: 1-800-231-5469
Shareholders outside
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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.
Normal Course Issuer Bid
On December 10, 2018, the Bank announced that the
TSX and OSFI approved the Bank's amended Normal Course Issuer Bid
(NCIB) to repurchase for cancellation up to an additional 20
million of the Bank's common shares. Pursuant to the amended Notice
of Intention filed with the TSX, the NCIB ends on April 12, 2019, such earlier date as the Bank may
determine or such earlier date as the Bank may complete its
purchases. A copy of the Notice may be obtained without charge by
contacting TD Shareholder Relations by phone at 416-944-6367 or
1-866-756-8936 or by e-mail at tdshinfo@td.com.
Access to Quarterly Results Materials
Interested investors, the media and others may view the first
quarter earnings news release, results slides, supplementary
financial information, and the Report to Shareholders on the TD
Investor Relations website at www.td.com/investor/.
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on February 28, 2019.
The call will be audio webcast live through 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 first quarter, discussions of related disclosures, and will be
followed by a question-and-answer period with analysts. The
presentation material referenced during the call will be available
on the TD website at www.td.com/investor/qr_2019.jsp on
February 28, 2019, by approximately
12 p.m. ET. A listen-only telephone
line is available at 416-641-6150 or 1-866-696-5894 (toll free) and
the passcode is 2727354.
The audio webcast and presentations will be archived at
www.td.com/investor/qr_2019.jsp. Replay of the teleconference will
be available from 3:30 p.m. ET on February 28, 2019, until 4:30 p.m. ET on March 28, 2019, by calling
905-694-9451 or 1-800-408-3053 (toll free). The passcode is
5187605.
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 January 31,
2019. The Toronto-Dominion Bank trades under the symbol
"TD" on the Toronto and New
York Stock Exchanges.
SOURCE TD Bank Group