This quarterly
earnings news release should be read in conjunction with the Bank's
unaudited fourth quarter 2019 consolidated financial results for
the year ended October 31, 2019, included in this Earnings News
Release and the audited 2019 Consolidated Financial Statements,
prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB), which is available on TD's website at
http://www.td.com/investor/. This analysis is dated December 4,
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 revised
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 2019
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 $1.54, compared with $1.58.
- Adjusted diluted earnings per share were $1.59, compared with $1.63.
- Reported net income was $2,856
million, compared with $2,960
million.
- Adjusted net income was $2,946
million, compared with $3,048
million.
FULL YEAR FINANCIAL HIGHLIGHTS, compared with last
year:
- Reported diluted earnings per share were $6.25, compared with $6.01.
- Adjusted diluted earnings per share were $6.69, compared with $6.47.
- Reported net income was $11,686
million, compared with $11,334
million.
- Adjusted net income was $12,503
million, compared with $12,183
million.
FOURTH QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The
fourth quarter reported earnings figures included the following
items of note:
- Amortization of intangibles of $74
million ($62 million after tax
or 3 cents per share), compared with
$76 million ($63 million after tax or 4
cents per share) in the fourth quarter last year.
- Charges associated with the acquisition of Greystone of
$30 million ($28 million after tax or 2
cents per share).
TORONTO, Dec. 5, 2019 /CNW/ - TD Bank Group ("TD" or the
"Bank") today announced its financial results for the fourth
quarter ended October 31, 2019.
Fourth quarter reported earnings were $2.9
billion, down 4% on a reported and down 3% on an adjusted
basis, compared with the same quarter last year. Results include
restructuring charges of $154 million
($114 million after tax or
6 cents per share) in the current
quarter.
"In 2019, we demonstrated the strength and resilience of our
franchise as we continued to acquire and serve our customers while
increasing loan and deposit volumes," said Bharat Masrani, Group
President and Chief Executive Officer, TD Bank Group. "Throughout
the year, we generated earnings growth amidst a challenging
macroeconomic environment while we made strategic investments to
strengthen our business, deliver for our customers, and modernize
and simplify our operations."
Canadian Retail
Canadian Retail reported net income
was $1,745 million and adjusted net
income was $1,773 million, an
increase of $4 million on a reported
basis and $32 million on an adjusted
basis, compared with the same quarter last year. Revenue growth of
5% reflected increased loan and deposit volumes and higher revenue
in the Wealth and Insurance businesses, which combined with good
expense controls led to positive operating leverage this quarter.
Canadian Retail continues to invest in front-line advisors and
customer service specialists, to help customers feel confident
about their financial future. In addition, the segment made further
investments in core infrastructure and new digital capabilities
such as its new TD Wheels app and new mobile-enabled credit card
controls.
U.S. Retail
U.S. Retail reported and adjusted net
income was $1,191 million
(US$900 million), an increase of 7%
(5% in U.S. dollars) on a reported basis and 5% (3% in
U.S. dollars) on an adjusted basis, compared with the same
quarter last year. TD Ameritrade contributed $291 million (US$219
million) in reported and adjusted earnings to the segment,
an increase of 28% (25% in U.S. dollars) on a reported basis and
15% (13% in U.S. dollars) on an adjusted basis, compared to the
same quarter last year.
The U.S. Retail Bank, which excludes the Bank's investment in TD
Ameritrade, contributed $900 million
(US$681 million), up 2% (flat in U.S.
dollars) from the same quarter last year. Higher loan and deposit
volumes were offset by lower margins. This quarter, the U.S. Retail
Bank ranked "Highest in Customer Satisfaction with Small Business
Banking in the South Region" according to the J.D. Power Small
Business Banking Satisfaction Study, a testament to the investments
made to upgrade the Small Business Banking digital platform and the
segment's ongoing dedication to providing legendary customer
service and convenience.
Wholesale
Wholesale Banking net income was
$160 million, down $126 million compared with the fourth quarter
last year. This quarter, the Wholesale Bank had solid performance
in trading, advisory, and underwriting activities. Lower revenue
was primarily impacted by derivative valuation charges incurred in
the fourth quarter, mainly in connection with significant upgrades
made to the derivative valuation system and related methodologies.
The Wholesale Bank also saw increased provisions for credit losses
related to a limited number of exposures, and higher expenses,
including restructuring, as it reduces the cost structure of
certain areas of the business. This year, TD Securities once again
placed first overall in the StarMine Analyst Awards and was tied
for First in Overall Canadian Fixed Income by Greenwich.
Capital
TD's Common Equity Tier 1 Capital ratio on a Basel III fully
phased-in basis was 12.1%.
Innovation
"We have made terrific progress extending
our digital leadership in 2019, investing in new capabilities
across the Bank," added Masrani. "This quarter, we opened our new
TD Cyber Fusion Centre, co-locating leading experts from across TD
with a focus on strengthening our cyber defences, protecting our
customers and safeguarding the Bank. We are also deploying the
power of Artificial Intelligence in innovative ways, accelerating
the introduction of new digital experiences while leading
industry-wide conversations on the development of this
groundbreaking technology through our recently released Responsible
AI report."
Conclusion
"As we enter 2020, we remain focused on our long-term strategy and
are proud of the businesses we continue to build. No matter the
operating environment, we are guided by our proven business model,
purpose-driven brand, and forward-focused approach, all with the
aim to deliver for our customers, colleagues, and shareholders each
and every day," added Masrani.
"I want to thank our more than 85,000 colleagues around the
globe for living the TD brand, and for their unwavering commitment
to delivering legendary experiences for our customers," 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 ("2019 MD&A") in the
Bank's 2019 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
2020", and for the Corporate segment, "Focus for 2020", and in
other statements regarding the Bank's objectives and priorities for
2020 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), model, 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; geopolitical risk; the ability of the Bank to execute on
long-term strategies and shorter-term key strategic priorities,
including the successful completion of acquisitions and
dispositions, business retention plans, 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; fraud or other criminal
activity 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;
Interbank Offered Rate (IBOR) transition risk; critical accounting
estimates and changes to accounting standards, policies, and
methods used by the Bank; existing and potential international debt
crises; environmental and social risk; 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 2019 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 and Subsequent Events, and Pending
Transactions" 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 2019
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 2020", and for the Corporate
segment, "Focus for 2020", 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
|
|
As at or for the
twelve months ended
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
October
31
|
|
October
31
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Results of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue –
reported
|
$
|
10,340
|
|
$
|
10,499
|
|
$
|
10,136
|
|
$
|
41,065
|
|
$
|
38,892
|
|
Total revenue –
adjusted2
|
|
10,340
|
|
|
10,499
|
|
|
10,136
|
|
|
41,065
|
|
|
38,981
|
|
Provision for credit
losses
|
|
891
|
|
|
655
|
|
|
670
|
|
|
3,029
|
|
|
2,480
|
|
Insurance claims and
related expenses
|
|
705
|
|
|
712
|
|
|
684
|
|
|
2,787
|
|
|
2,444
|
|
Non-interest expenses
– reported
|
|
5,543
|
|
|
5,374
|
|
|
5,366
|
|
|
22,020
|
|
|
20,195
|
|
Non-interest expenses
– adjusted2
|
|
5,463
|
|
|
5,298
|
|
|
5,313
|
|
|
21,085
|
|
|
19,943
|
|
Net income –
reported
|
|
2,856
|
|
|
3,248
|
|
|
2,960
|
|
|
11,686
|
|
|
11,334
|
|
Net income –
adjusted2
|
|
2,946
|
|
|
3,338
|
|
|
3,048
|
|
|
12,503
|
|
|
12,183
|
|
Financial
position (billions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans net of
allowance for loan losses
|
$
|
684.6
|
|
$
|
675.9
|
|
$
|
646.4
|
|
$
|
684.6
|
|
$
|
646.4
|
|
Total
assets
|
|
1,415.3
|
|
|
1,405.4
|
|
|
1,334.9
|
|
|
1,415.3
|
|
|
1,334.9
|
|
Total
deposits
|
|
887.0
|
|
|
870.3
|
|
|
851.4
|
|
|
887.0
|
|
|
851.4
|
|
Total
equity
|
|
87.7
|
|
|
86.4
|
|
|
80.0
|
|
|
87.7
|
|
|
80.0
|
|
Total Common Equity
Tier 1 Capital risk-weighted assets3
|
|
456.0
|
|
|
454.9
|
|
|
435.6
|
|
|
456.0
|
|
|
435.6
|
|
Financial
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported
|
|
13.6
|
%
|
|
15.8
|
%
|
|
15.8
|
%
|
|
14.5
|
%
|
|
15.7
|
%
|
Return on common
equity – adjusted2,4
|
|
14.0
|
|
|
16.2
|
|
|
16.3
|
|
|
15.6
|
|
|
16.9
|
|
Return on tangible
common equity2,4
|
|
18.9
|
|
|
22.0
|
|
|
22.7
|
|
|
20.5
|
|
|
22.7
|
|
Return on tangible
common equity – adjusted2,4
|
|
19.1
|
|
|
22.2
|
|
|
22.9
|
|
|
21.5
|
|
|
23.9
|
|
Efficiency ratio –
reported
|
|
53.6
|
|
|
51.2
|
|
|
52.9
|
|
|
53.6
|
|
|
51.9
|
|
Efficiency ratio –
adjusted2
|
|
52.8
|
|
|
50.5
|
|
|
52.4
|
|
|
51.3
|
|
|
51.2
|
|
Provision for credit
losses as a % of net average loans and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acceptances5
|
|
0.51
|
|
|
0.38
|
|
|
0.41
|
|
|
0.45
|
|
|
0.39
|
|
Common share
information – reported (Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.54
|
|
$
|
1.75
|
|
$
|
1.58
|
|
$
|
6.26
|
|
$
|
6.02
|
|
Diluted
|
|
1.54
|
|
|
1.74
|
|
|
1.58
|
|
|
6.25
|
|
|
6.01
|
|
Dividends per
share
|
|
0.74
|
|
|
0.74
|
|
|
0.67
|
|
|
2.89
|
|
|
2.61
|
|
Book value per
share
|
|
45.20
|
|
|
44.30
|
|
|
40.50
|
|
|
45.20
|
|
|
40.50
|
|
Closing share
price6
|
|
75.21
|
|
|
77.15
|
|
|
73.03
|
|
|
75.21
|
|
|
73.03
|
|
Shares outstanding
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
basic
|
|
1,811.7
|
|
|
1,825.3
|
|
|
1,826.5
|
|
|
1,824.2
|
|
|
1,835.4
|
|
Average
diluted
|
|
1,814.5
|
|
|
1,828.6
|
|
|
1,830.5
|
|
|
1,827.3
|
|
|
1,839.5
|
|
End of
period
|
|
1,811.9
|
|
|
1,819.2
|
|
|
1,828.3
|
|
|
1,811.9
|
|
|
1,828.3
|
|
Market capitalization
(billions of Canadian dollars)
|
$
|
136.3
|
|
$
|
140.4
|
|
$
|
133.5
|
|
$
|
136.3
|
|
$
|
133.5
|
|
Dividend
yield7
|
|
4.0
|
%
|
|
3.9
|
%
|
|
3.5
|
%
|
|
3.9
|
%
|
|
3.5
|
%
|
Dividend payout
ratio
|
|
48.0
|
|
|
42.3
|
|
|
42.3
|
|
|
46.1
|
|
|
43.3
|
|
Price-earnings
ratio
|
|
12.0
|
|
|
12.3
|
|
|
12.2
|
|
|
12.0
|
|
|
12.2
|
|
Total shareholder
return (1-year)8
|
|
7.1
|
|
|
3.9
|
|
|
3.1
|
|
|
7.1
|
|
|
3.1
|
|
Common share
information – adjusted (Canadian
dollars)2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.59
|
|
$
|
1.79
|
|
$
|
1.63
|
|
$
|
6.71
|
|
$
|
6.48
|
|
Diluted
|
|
1.59
|
|
|
1.79
|
|
|
1.63
|
|
|
6.69
|
|
|
6.47
|
|
Dividend payout
ratio
|
|
46.5
|
%
|
|
41.1
|
%
|
|
41.1
|
%
|
|
43.0
|
%
|
|
40.2
|
%
|
Price-earnings
ratio
|
|
11.2
|
|
|
11.4
|
|
|
11.3
|
|
|
11.2
|
|
|
11.3
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Capital ratio3
|
|
12.1
|
%
|
|
12.0
|
%
|
|
12.0
|
%
|
|
12.1
|
%
|
|
12.0
|
%
|
Tier 1 Capital
ratio3
|
|
13.5
|
|
|
13.4
|
|
|
13.7
|
|
|
13.5
|
|
|
13.7
|
|
Total Capital
ratio3
|
|
16.3
|
|
|
16.1
|
|
|
16.2
|
|
|
16.3
|
|
|
16.2
|
|
Leverage
ratio
|
|
4.0
|
|
|
4.1
|
|
|
4.2
|
|
|
4.0
|
|
|
4.2
|
|
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 were 80%, 83%, and 86%,
respectively.
|
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 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.
The following table provides the operating results on a reported
basis for the Bank.
|
|
|
|
|
|
|
|
|
|
|
TABLE 2: OPERATING
RESULTS – Reported1
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
July
31
|
October
31
|
October
31
|
October
31
|
|
|
2019
|
2019
|
2018
|
2019
|
2018
|
Net interest
income
|
$
|
6,175
|
$
|
6,024
|
$
|
5,756
|
$
|
23,931
|
$
|
22,239
|
Non-interest
income
|
|
4,165
|
|
4,475
|
|
4,380
|
|
17,134
|
|
16,653
|
Total
revenue
|
|
10,340
|
|
10,499
|
|
10,136
|
|
41,065
|
|
38,892
|
Provision for credit
losses
|
|
891
|
|
655
|
|
670
|
|
3,029
|
|
2,480
|
Insurance claims and
related expenses
|
|
705
|
|
712
|
|
684
|
|
2,787
|
|
2,444
|
Non-interest expenses
|
|
5,543
|
|
5,374
|
|
5,366
|
|
22,020
|
|
20,195
|
Income before
income taxes and equity in net income of an
|
|
|
|
|
|
|
|
|
|
|
|
investment in TD
Ameritrade
|
|
3,201
|
|
3,758
|
|
3,416
|
|
13,229
|
|
13,773
|
Provision for income
taxes
|
|
646
|
|
813
|
|
691
|
|
2,735
|
|
3,182
|
Equity in net income
of an investment in TD Ameritrade
|
|
301
|
|
303
|
|
235
|
|
1,192
|
|
743
|
Net income –
reported
|
|
2,856
|
|
3,248
|
|
2,960
|
|
11,686
|
|
11,334
|
Preferred
dividends
|
|
68
|
|
62
|
|
51
|
|
252
|
|
214
|
Net income
available to common shareholders and
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests in subsidiaries
|
$
|
2,788
|
$
|
3,186
|
$
|
2,909
|
$
|
11,434
|
$
|
11,120
|
Attributable to:
|
|
|
|
|
|
|
|
|
|
|
Common
shareholders
|
$
|
2,788
|
$
|
3,186
|
$
|
2,891
|
$
|
11,416
|
$
|
11,048
|
Non-controlling
interests
|
|
–
|
|
–
|
|
18
|
|
18
|
|
72
|
|
|
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
|
For the twelve
months ended
|
|
|
October
31
|
July
31
|
October
31
|
October
31
|
October
31
|
|
2019
|
2019
|
2018
|
2019
|
2018
|
Operating results
– adjusted
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
6,175
|
$
|
6,024
|
$
|
5,756
|
$
|
23,931
|
$
|
22,239
|
Non-interest
income2
|
|
4,165
|
|
4,475
|
|
4,380
|
|
17,134
|
|
16,742
|
Total
revenue
|
|
10,340
|
|
10,499
|
|
10,136
|
|
41,065
|
|
38,981
|
Provision for credit
losses
|
|
891
|
|
655
|
|
670
|
|
3,029
|
|
2,480
|
Insurance claims and
related expenses
|
|
705
|
|
712
|
|
684
|
|
2,787
|
|
2,444
|
Non-interest
expenses3
|
|
5,463
|
|
5,298
|
|
5,313
|
|
21,085
|
|
19,943
|
Income before
income taxes and equity in net income of an
|
|
|
|
|
|
|
|
|
|
|
|
investment in TD
Ameritrade
|
|
3,281
|
|
3,834
|
|
3,469
|
|
14,164
|
|
14,114
|
Provision for income
taxes
|
|
660
|
|
824
|
|
704
|
|
2,949
|
|
2,898
|
Equity in net income
of an investment in TD Ameritrade4
|
|
325
|
|
328
|
|
283
|
|
1,288
|
|
967
|
Net income –
adjusted
|
|
2,946
|
|
3,338
|
|
3,048
|
|
12,503
|
|
12,183
|
Preferred
dividends
|
|
68
|
|
62
|
|
51
|
|
252
|
|
214
|
Net income
available to common shareholders and
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests in subsidiaries – adjusted
|
|
2,878
|
|
3,276
|
|
2,997
|
|
12,251
|
|
11,969
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in subsidiaries, net of income taxes
|
|
–
|
|
–
|
|
18
|
|
18
|
|
72
|
Net income
available to common shareholders – adjusted
|
|
2,878
|
|
3,276
|
|
2,979
|
|
12,233
|
|
11,897
|
Pre-tax
adjustments of items of note
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles5
|
|
(74)
|
|
(75)
|
|
(76)
|
|
(307)
|
|
(324)
|
Charges related to
the long-term loyalty agreement with Air
Canada6
|
|
–
|
|
–
|
|
–
|
|
(607)
|
|
–
|
Charges associated
with the acquisition of Greystone7
|
|
(30)
|
|
(26)
|
|
–
|
|
(117)
|
|
–
|
Charges associated
with the Scottrade transaction8
|
|
–
|
|
–
|
|
(25)
|
|
–
|
|
(193)
|
Impact from U.S. tax
reform9
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(48)
|
Provision for
(recovery of) income taxes for items of note
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles5,10
|
|
(12)
|
|
(11)
|
|
(13)
|
|
(48)
|
|
(55)
|
Charges related to
the long-term loyalty agreement with Air
Canada6
|
|
–
|
|
–
|
|
–
|
|
(161)
|
|
–
|
Charges associated
with the acquisition of Greystone7
|
|
(2)
|
|
–
|
|
–
|
|
(5)
|
|
–
|
Charges associated
with the Scottrade transaction8
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(5)
|
Impact from U.S. tax
reform9
|
|
–
|
|
–
|
|
–
|
|
–
|
|
344
|
Total adjustments
for items of note
|
|
(90)
|
|
(90)
|
|
(88)
|
|
(817)
|
|
(849)
|
Net income
available to common shareholders – reported
|
$
|
2,788
|
$
|
3,186
|
$
|
2,891
|
$
|
11,416
|
$
|
11,048
|
|
|
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 items 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 excludes the following items of note: Amortization of
intangibles, as explained in footnote 5 – fourth quarter 2019 – $50
million, third quarter 2019 – $50 million, second quarter 2019 –
$55 million, first quarter 2019 – $56 million, fourth quarter 2018
– $53 million, third quarter 2018 – $53 million, second quarter
2018 – $62 million, first quarter 2018 – $63 million, 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 – fourth quarter 2019 – $30
million, third quarter 2019 – $26 million, second quarter 2019 –
$30 million, first quarter 2019 – $31 million; this amount was
reported in the Canadian Retail segment. Charges associated with
the Bank's acquisition of Scottrade Bank, as explained in footnote
8 – second quarter 2018 – $16 million, first quarter 2018 – $5
million, these amounts were 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 – fourth quarter 2019 – $24 million, third quarter 2019
– $25 million, second quarter 2019 – $23 million, first quarter
2019 – $24 million, fourth quarter 2018 – $23 million, third
quarter 2018 – $24 million, second quarter 2018 – $24 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 costs associated with TD Ameritrade's
acquisition of Scottrade Financial Services Inc. ("Scottrade"), as
explained in footnote 8 – fourth quarter 2018 – $25 million, third
quarter 2018 – $18 million, second quarter 2018 – $61 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 during the first
quarter of 2019.
|
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 are reported in the U.S. Retail segment.
|
9
|
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 2018 of $392 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 $344 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 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
|
|
2019
|
2019
|
2018
|
2019
|
2018
|
Basic earnings per
share – reported
|
$
|
1.54
|
$
|
1.75
|
$
|
1.58
|
$
|
6.26
|
$
|
6.02
|
Adjustments for items
of note2
|
|
0.05
|
|
0.04
|
|
0.05
|
|
0.45
|
|
0.46
|
Basic earnings per
share – adjusted
|
$
|
1.59
|
$
|
1.79
|
$
|
1.63
|
$
|
6.71
|
$
|
6.48
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share – reported
|
$
|
1.54
|
$
|
1.74
|
$
|
1.58
|
$
|
6.25
|
$
|
6.01
|
Adjustments for items
of note2
|
|
0.05
|
|
0.05
|
|
0.05
|
|
0.44
|
|
0.46
|
Diluted earnings
per share – adjusted
|
$
|
1.59
|
$
|
1.79
|
$
|
1.63
|
$
|
6.69
|
$
|
6.47
|
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
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Provision for
income taxes – reported
|
$
|
646
|
|
$
|
813
|
|
$
|
691
|
|
$
|
2,735
|
|
$
|
3,182
|
|
Total adjustments
for items of note1
|
|
14
|
|
|
11
|
|
|
13
|
|
|
214
|
|
|
(284)
|
|
Provision for
income taxes – adjusted
|
$
|
660
|
|
$
|
824
|
|
$
|
704
|
|
$
|
2,949
|
|
$
|
2,898
|
|
Effective income
tax rate – reported
|
|
20.2
|
%
|
|
21.6
|
%
|
|
20.2
|
%
|
|
20.7
|
%
|
|
23.1
|
%
|
Effective income
tax rate – adjusted2,3
|
|
20.1
|
|
|
21.5
|
|
|
20.3
|
|
|
20.8
|
|
|
20.5
|
|
|
|
1
|
For explanations of
items of note, refer to the "Non-GAAP Financial Measures –
Reconciliation of Adjusted to Reported Net Income" table in the
"How We Performed" section of this document.
|
2
|
The tax effect for
each item of note is calculated using the 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. 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 return on common equity (ROE) is adjusted net income
available to common shareholders as a percentage of average common
equity.
Adjusted ROE is a non-GAAP financial measure 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
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Average common
equity
|
$
|
81,286
|
|
$
|
80,160
|
|
$
|
72,461
|
|
$
|
78,638
|
|
$
|
70,499
|
|
Net income
available to common shareholders – reported
|
|
2,788
|
|
|
3,186
|
|
|
2,891
|
|
|
11,416
|
|
|
11,048
|
|
Items of note, net of
income taxes1
|
|
90
|
|
|
90
|
|
|
88
|
|
|
817
|
|
|
849
|
|
Net income
available to common shareholders – adjusted
|
$
|
2,878
|
|
$
|
3,276
|
|
$
|
2,979
|
|
$
|
12,233
|
|
$
|
11,897
|
|
Return on common
equity – reported
|
|
13.6
|
%
|
|
15.8
|
%
|
|
15.8
|
%
|
|
14.5
|
%
|
|
15.7
|
%
|
Return on common
equity – adjusted
|
|
14.0
|
|
|
16.2
|
|
|
16.3
|
|
|
15.6
|
|
|
16.9
|
|
|
|
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.
|
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
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Average common
equity
|
$
|
81,286
|
|
$
|
80,160
|
|
$
|
72,461
|
|
$
|
78,638
|
|
$
|
70,499
|
|
Average
goodwill
|
|
17,046
|
|
|
17,123
|
|
|
16,390
|
|
|
17,070
|
|
|
16,197
|
|
Average imputed
goodwill and intangibles on an
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in
TD Ameritrade
|
|
4,119
|
|
|
4,145
|
|
|
4,100
|
|
|
4,146
|
|
|
4,100
|
|
Average other
acquired intangibles1
|
|
613
|
|
|
666
|
|
|
597
|
|
|
662
|
|
|
676
|
|
Average related
deferred tax liabilities
|
|
(267)
|
|
|
(272)
|
|
|
(219)
|
|
|
(260)
|
|
|
(240)
|
|
Average tangible
common equity
|
|
59,775
|
|
|
58,498
|
|
|
51,593
|
|
|
57,020
|
|
|
49,766
|
|
Net income
available to common shareholders – reported
|
|
2,788
|
|
|
3,186
|
|
|
2,891
|
|
|
11,416
|
|
|
11,048
|
|
Amortization of
acquired intangibles, net of income
taxes2
|
|
62
|
|
|
64
|
|
|
63
|
|
|
259
|
|
|
269
|
|
Net income
available to common shareholders after
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
adjusting for
after-tax amortization of acquired intangibles
|
|
2,850
|
|
|
3,250
|
|
|
2,954
|
|
|
11,675
|
|
|
11,317
|
|
Other items of note,
net of income taxes2
|
|
28
|
|
|
26
|
|
|
25
|
|
|
558
|
|
|
580
|
|
Net income
available to common shareholders – adjusted
|
$
|
2,878
|
|
$
|
3,276
|
|
$
|
2,979
|
|
$
|
12,233
|
|
$
|
11,897
|
|
Return on tangible
common equity
|
|
18.9
|
%
|
|
22.0
|
%
|
|
22.7
|
%
|
|
20.5
|
%
|
|
22.7
|
%
|
Return on tangible
common equity – adjusted
|
|
19.1
|
|
|
22.2
|
|
|
22.9
|
|
|
21.5
|
|
|
23.9
|
|
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
The following table reflects the
estimated impact of foreign currency translation on key U.S. Retail
segment income statement items.
|
TABLE 8: IMPACT OF
FOREIGN CURRENCY TRANSLATION ON U.S. RETAIL SEGMENT
EARNINGS
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October 31, 2019
vs.
|
October 31, 2019
vs.
|
|
|
October 31,
2018
|
October 31,
2018
|
|
|
Increase
(Decrease)
|
Increase
(Decrease)
|
U.S. Retail
Bank
|
|
|
|
|
|
|
|
Total
revenue
|
|
|
$
|
46
|
|
$
|
369
|
Non-interest expenses
– reported
|
|
|
|
26
|
|
|
199
|
Non-interest expenses
– adjusted
|
|
|
|
26
|
|
|
199
|
Net income –
reported, after tax
|
|
|
|
14
|
|
|
120
|
Net income –
adjusted, after tax
|
|
|
|
14
|
|
|
120
|
Equity in net income
of an investment in TD Ameritrade –
reported1
|
|
|
|
3
|
|
|
37
|
Equity in net income
of an investment in TD Ameritrade –
adjusted1
|
|
|
|
3
|
|
|
37
|
U.S. Retail
segment net income – reported, after tax
|
|
|
|
17
|
|
|
158
|
U.S. Retail
segment net income – adjusted, after tax
|
|
|
|
17
|
|
|
158
|
Earnings per
share (Canadian dollars)
|
|
|
|
|
|
|
|
Basic –
reported
|
|
|
$
|
0.01
|
|
$
|
0.09
|
Basic –
adjusted
|
|
|
|
0.01
|
|
|
0.09
|
Diluted –
reported
|
|
|
|
0.01
|
|
|
0.09
|
Diluted –
adjusted
|
|
|
|
0.01
|
|
|
0.09
|
|
|
1
|
Equity in net income
of an investment in TD Ameritrade and the foreign exchange impact
are reported with a one-month lag.
|
Average foreign
exchange rate (equivalent of CAD $1.00)
|
For the three
months ended
|
For the Twelve
months ended
|
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
|
2019
|
2018
|
2019
|
2018
|
U.S.
dollar
|
1.324
|
1.303
|
1.329
|
1.287
|
SIGNIFICANT AND SUBSEQUENT EVENTS, AND PENDING
TRANSACTIONS
Bank Supports Acquisition of TD Ameritrade Holding
Corporation by The Charles Schwab Corporation
On November 25, 2019, the Bank
announced its support for the acquisition of TD Ameritrade Holding
Corporation (TD Ameritrade), of which the Bank is a major
shareholder, by The Charles Schwab Corporation (Schwab), through a
definitive agreement announced by those companies. Under the terms
of the transaction, all TD Ameritrade shareholders, including the
Bank, would exchange each TD Ameritrade share they own for 1.0837
shares of Schwab. As a result, the Bank will exchange its
approximate 43% in TD Ameritrade for an approximate 13.4% stake in
Schwab, consisting of up to 9.9% voting common shares and the
remainder in non-voting common shares, convertible upon transfer to
a third party. TD expects to record a revaluation gain at
closing.
The transaction is subject to certain closing conditions,
including majority approval by the shareholders of each of TD
Ameritrade and Schwab, and majority approval of TD Ameritrade's
shareholders other than TD and certain other shareholders of TD
Ameritrade that have entered into voting agreements. In
addition, the transaction is subject to receipt of regulatory
approvals. The transaction is expected to close in the second half
of calendar 2020, subject to all applicable closing conditions
having been satisfied.
If the transaction closes, it is expected to have minimal
capital impact on the Bank, and the Bank expects to account for its
investment in Schwab using the equity method of accounting. The
Bank and Schwab have entered into a new Stockholders' Agreement
that will become effective upon closing, under which the Bank will
have two seats on Schwab's Board of Directors, subject to the Bank
meeting certain conditions. Under the agreement, the Bank will be
subject to customary standstill and lockup restrictions. The Bank
and Schwab have also entered into a revised and extended long-term
Insured Deposit Account (IDA) agreement that will become effective
upon closing and extends to 2031. Starting on July 1, 2021, IDA deposits, which were
$142 billion (US$108 billion) as at October 31, 2019, can be reduced at Schwab's
option by up to US$10 billion a year,
with a floor of US$50 billion. The
servicing fee under the revised IDA agreement will be set at 15
basis points (bps) upon closing.
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 bps.
Acquisition of Greystone
On November 1, 2018, the Bank
acquired 100% of the outstanding equity of Greystone for
consideration of $821 million, of
which $479 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 are being
held in escrow for two years post-acquisition, subject to their
continued employment, and are being recorded as a compensation
expense over the two-year escrow period.
The acquisition was accounted for as a business combination
under the purchase method. As at November 1,
2018, the acquisition contributed $165 million of assets and $46 million of liabilities. The excess of
accounting consideration over the fair value of the identifiable
net assets has been allocated to customer relationship intangibles
of $140 million, deferred tax
liability of $37 million, and
goodwill of $432 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.
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 2019 MD&A,
and Note 29 of the Bank's Consolidated Financial Statements for the
year ended October 31, 2019. 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.
Provision for credit losses (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 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 $36 million, compared
with $28 million in the fourth
quarter last year, and $37 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
|
|
|
2019
|
|
2019
|
|
2018
|
|
Net interest
income
|
$
|
3,173
|
|
$
|
3,122
|
|
$
|
3,022
|
|
Non-interest
income
|
|
2,960
|
|
|
3,024
|
|
|
2,830
|
|
Total
revenue
|
|
6,133
|
|
|
6,146
|
|
|
5,852
|
|
Provision for credit
losses – impaired
|
|
324
|
|
|
282
|
|
|
245
|
|
Provision for credit
losses – performing
|
|
76
|
|
|
34
|
|
|
18
|
|
Total provision for
credit losses
|
|
400
|
|
|
316
|
|
|
263
|
|
Insurance claims and
related expenses
|
|
705
|
|
|
712
|
|
|
684
|
|
Non-interest expenses
– reported
|
|
2,637
|
|
|
2,533
|
|
|
2,530
|
|
Non-interest expenses
– adjusted1
|
|
2,607
|
|
|
2,507
|
|
|
2,530
|
|
Provision for
(recovery of) income taxes – reported
|
|
646
|
|
|
695
|
|
|
634
|
|
Provision for
(recovery of) income taxes – adjusted1
|
|
648
|
|
|
695
|
|
|
634
|
|
Net income –
reported
|
|
1,745
|
|
|
1,890
|
|
|
1,741
|
|
Net income –
adjusted1
|
$
|
1,773
|
|
$
|
1,916
|
|
$
|
1,741
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported2
|
|
37.9
|
%
|
|
41.7
|
%
|
|
45.1
|
%
|
Return on common
equity – adjusted1,2
|
|
38.5
|
|
|
42.2
|
|
|
45.1
|
|
Net interest margin
(including on securitized assets)
|
|
2.96
|
|
|
2.96
|
|
|
2.94
|
|
Efficiency ratio –
reported
|
|
43.0
|
|
|
41.2
|
|
|
43.2
|
|
Efficiency ratio –
adjusted1
|
|
42.5
|
|
|
40.8
|
|
|
43.2
|
|
Assets under
administration (billions of Canadian dollars)
|
$
|
422
|
|
$
|
419
|
|
$
|
389
|
|
Assets under
management (billions of Canadian dollars)
|
|
353
|
|
|
350
|
|
|
289
|
|
Number of Canadian
retail branches
|
|
1,091
|
|
|
1,097
|
|
|
1,098
|
|
Average number of
full-time equivalent staff
|
|
41,650
|
|
|
41,583
|
|
|
39,283
|
|
1
|
Adjusted non-interest
expenses exclude the following items of note: Charges associated
with the acquisition of Greystone in the fourth quarter 2019 – $30
million ($28 million after tax) and the third quarter 2019 –
$26 million ($26 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 – Q4 2019 vs. Q4 2018
Canadian Retail reported net income for the quarter was
$1,745 million, an increase of
$4 million, compared with the fourth quarter last year. The
increase in earnings reflects revenue growth, partially offset by
higher PCL, non-interest expenses including charges associated with
the acquisition of Greystone, and insurance claims. On an adjusted
basis, net income for the quarter was $1,773
million, an increase of $32
million, or 2%. The reported and adjusted annualized ROE for
the quarter was 37.9% and 38.5%, respectively, compared with 45.1%
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 $6,133 million,
an increase of $281 million, or 5%, compared with the fourth
quarter last year.
Net interest income increased $151 million, or 5%,
reflecting volume growth. Average loan volumes increased
$19 billion, or 5%, reflecting 4% growth in personal loans and
9% growth in business loans. Average deposit volumes increased
$16 billion, or 5%, reflecting 6% growth in personal deposits,
3% growth in business deposits, and 4% growth in wealth deposits.
Net interest margin was 2.96%, an increase of 2 bps, reflecting
higher interest rates, partially offset by competitive pricing in
term deposits and loans.
Non-interest income increased $130
million, or 5%, reflecting an increase in insurance
revenues, higher fee-based revenue in the wealth business, and the
acquisition of Greystone.
Assets under administration (AUA) were $422 billion as at October
31, 2019, an increase of $33
billion, or 8%, compared with the fourth quarter last year,
reflecting new asset growth and increases in market value. Assets
under management (AUM) were $353 billion as at
October 31, 2019, an increase of $64 billion, or
22%, compared with the fourth quarter last year, reflecting the
acquisition of Greystone and increases in market value.
PCL for the quarter was $400
million, an increase of $137
million, or 52%, compared with the fourth quarter last year.
PCL – impaired was $324 million, an increase of $79 million, or 32%, reflecting low prior period
provisions in commercial, higher insolvencies in the other personal
lending and credit card portfolios, and volume growth. PCL –
performing was $76 million, an
increase of $58 million, reflecting
credit migration across the consumer lending and commercial
portfolios, including the impact of parameter updates, and volume
growth. Total PCL as an annualized percentage of credit volume was
0.37%, or an increase of 12 bps.
Insurance claims and related expenses for the quarter were
$705 million, an increase of
$21 million, or 3%, compared with the
fourth quarter last year. The increase reflects higher current year
claims related to business growth, partially offset by more
favourable prior years' claims development and less severe
weather-related events.
Reported non-interest expenses for the quarter were $2,637 million, an increase of
$107 million, or 4%, compared with the fourth quarter last
year, reflecting higher spend supporting business growth including
employee-related costs and charges associated with the acquisition
of Greystone, partially offset by lower marketing costs. On an
adjusted basis, non-interest expenses were $2,607 million, an increase of $77 million, or 3%.
The reported and adjusted efficiency ratio for the quarter was
43.0% and 42.5%, respectively, compared with 43.2% in the fourth
quarter last year.
Quarterly comparison – Q4 2019 vs. Q3 2019
Canadian Retail reported net income for the quarter decreased
$145 million, or 8%, compared with the prior quarter. The
decrease in earnings reflects higher non-interest expenses and PCL.
On an adjusted basis, net income decreased $143 million, or
7%. The reported and adjusted annualized ROE for the quarter was
37.9% and 38.5%, respectively, compared with 41.7% and 42.2%,
respectively, in the prior quarter.
Revenue decreased $13 million compared with the prior
quarter. Net interest income increased $51 million, or 2%,
reflecting volume growth. Average loan volumes increased
$7 billion, or 2%, reflecting 1% growth in personal loans and
2% growth in business loans. Average deposit volumes increased
$7 billion, or 2%. Net interest margin was 2.96%, consistent
with the prior quarter.
Non-interest income decreased $64
million, or 2%, reflecting a decrease in the fair value of
investments supporting claims liabilities as well as a revaluation
of points liabilities offset by growth in fee revenues.
AUA increased $3 billion, or 1%,
compared with the prior quarter, reflecting new asset growth. AUM
increased $3 billion, or 1%, reflecting increases in market
value.
PCL for the quarter increased $84
million, or 27%, compared with the prior quarter. PCL –
impaired increased by $42 million, or
15%, reflecting credit migration in the auto and commercial
portfolios. PCL – performing increased by $42 million, reflecting credit migration in the
credit card and commercial portfolios. Total PCL as an annualized
percentage of credit volume was 0.37%, an increase of 8 bps.
Insurance claims and related expenses for the quarter decreased
$7 million, or 1%, compared with the
prior quarter.
Reported non-interest expenses increased $104 million, or
4%, compared with the prior quarter, reflecting higher spend
supporting business growth including employee-related expenses, and
investment in strategic initiatives. On an adjusted basis,
non-interest expenses increased $100
million, or 4%.
The reported and adjusted efficiency ratio for the quarter was
43.0% and 42.5%, respectively, compared with 41.2% and 40.8%,
respectively, 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
|
|
2019
|
|
|
2019
|
|
|
2018
|
|
Net interest
income
|
$
|
2,232
|
|
$
|
2,241
|
|
$
|
2,145
|
|
Non-interest
income1
|
|
717
|
|
|
745
|
|
|
713
|
|
Total revenue –
reported
|
|
2,949
|
|
|
2,986
|
|
|
2,858
|
|
Provision for credit
losses – impaired
|
|
268
|
|
|
184
|
|
|
205
|
|
Provision for credit
losses – performing
|
|
27
|
|
|
71
|
|
|
39
|
|
Total provision for
credit losses
|
|
295
|
|
|
255
|
|
|
244
|
|
Non-interest
expenses
|
|
1,669
|
|
|
1,604
|
|
|
1,637
|
|
Provision for
(recovery of) income taxes1
|
|
85
|
|
|
134
|
|
|
91
|
|
U.S. Retail Bank
net income
|
|
900
|
|
|
993
|
|
|
886
|
|
Equity in net income
of an investment in TD Ameritrade –
reported1,2
|
|
291
|
|
|
294
|
|
|
228
|
|
Equity in net income
of an investment in TD Ameritrade –
adjusted1,3
|
|
291
|
|
|
294
|
|
|
253
|
|
Net income –
reported
|
|
1,191
|
|
|
1,287
|
|
|
1,114
|
|
Net income –
adjusted
|
$
|
1,191
|
|
$
|
1,287
|
|
$
|
1,139
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
1,687
|
|
$
|
1,686
|
|
$
|
1,646
|
|
Non-interest
income1
|
|
543
|
|
|
561
|
|
|
547
|
|
Total revenue –
reported
|
|
2,230
|
|
|
2,247
|
|
|
2,193
|
|
Provision for credit
losses – impaired
|
|
203
|
|
|
138
|
|
|
157
|
|
Provision for credit
losses – performing
|
|
20
|
|
|
53
|
|
|
30
|
|
Total provision for
credit losses
|
|
223
|
|
|
191
|
|
|
187
|
|
Non-interest
expenses
|
|
1,261
|
|
|
1,208
|
|
|
1,256
|
|
Provision for
(recovery of) income taxes1
|
|
65
|
|
|
101
|
|
|
70
|
|
U.S. Retail Bank
net income
|
|
681
|
|
|
747
|
|
|
680
|
|
Equity in net income
of an investment in TD Ameritrade –
reported1,2
|
|
219
|
|
|
220
|
|
|
175
|
|
Equity in net income
of an investment in TD Ameritrade –
adjusted1,3
|
|
219
|
|
|
220
|
|
|
194
|
|
Net income –
reported
|
|
900
|
|
|
967
|
|
|
855
|
|
Net income –
adjusted
|
$
|
900
|
|
$
|
967
|
|
$
|
874
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported4
|
|
11.8
|
%
|
|
12.9
|
%
|
|
12.8
|
%
|
Return on common
equity – adjusted3,4
|
|
11.8
|
|
|
12.9
|
|
|
13.0
|
|
Net interest
margin5
|
|
3.18
|
|
|
3.27
|
|
|
3.33
|
|
Efficiency
ratio
|
|
56.5
|
|
|
53.8
|
|
|
57.3
|
|
Assets under
administration (billions of U.S. dollars)
|
$
|
21
|
|
$
|
20
|
|
$
|
19
|
|
Assets under
management (billions of U.S. dollars)
|
|
44
|
|
|
43
|
|
|
52
|
|
Number of U.S. retail
stores
|
|
1,241
|
|
|
1,238
|
|
|
1,257
|
|
Average number of
full-time equivalent staff
|
|
26,513
|
|
|
26,590
|
|
|
27,015
|
|
1
|
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% as well as
an adjustment to the Bank's carrying balances of certain
tax-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
|
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.
|
3
|
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. 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
|
Capital allocated to
the business segment was based on 10% CET1 Capital in fiscal 2019
and 9% in fiscal 2018.
|
5
|
Net interest margin
excludes the impact related to the TD Ameritrade 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 – Q4 2019 vs. Q4 2018
U.S. Retail reported net income for the quarter was $1,191 million (US$900
million), an increase of $77
million (US$45 million), or 7%
(5% in U.S. dollars), compared with the fourth quarter last year.
On an adjusted basis, net income for the quarter increased
$52 million (US$26 million), or
5% (3% in U.S. dollars). The reported and adjusted annualized ROE
for the quarter was 11.8%, compared with 12.8% and 13.0%,
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 and the Bank's
investment in TD Ameritrade were $900
million (US$681 million) and
$291 million (US$219 million), respectively.
The reported contribution from TD Ameritrade of US$219 million increased US$44 million, or 25%, compared with the fourth
quarter last year, primarily reflecting higher asset-based revenue
and charges associated with the Scottrade transaction in the same
quarter last year, partially offset by higher operating expenses.
Adjusted contribution from TD Ameritrade increased US$25 million, or 13%.
U.S. Retail Bank net income of US$681
million for the quarter increased US$1 million.
U.S. Retail Bank revenue is derived from personal and business
banking, and wealth management. Revenue for the quarter was
US$2,230 million, an increase of
US$35 million, or 2%, compared with the fourth quarter last
year. Net interest income increased US$41 million, or 2%,
reflecting growth in loan and deposit volumes. Net interest margin
was 3.18%, a 15 bps decrease, primarily reflecting lower deposit
margins and balance sheet mix. Non‑interest income decreased
US$4 million, or 1%.
Average loan volumes increased US$10 billion, or 7%,
compared with the fourth quarter last year, due to growth of 7% in
both personal and business loans. Average deposit volumes increased
US$8 billion, or 3%, reflecting 4% growth in personal and 7%
growth in business deposit volumes, partially offset by a decrease
in sweep deposit volume from TD Ameritrade.
AUA were US$21 billion as at
October 31, 2019, relatively flat,
compared with the fourth quarter last year. AUM were
US$44 billion as at October 31, 2019, a decrease of
US$8 billion, or 16%, reflecting net
fund outflows including the impact of the strategic disposition of
U.S. money market funds in the first quarter of this year.
PCL for the quarter was US$223
million, an increase of US$36
million, or 19%, compared with the fourth quarter last year.
PCL – impaired was US$203 million, an increase of US$46 million, or 29%, driven by higher
provisions for the commercial portfolio and volume growth and
seasoning in the auto and credit card portfolios. PCL – performing
was US$20 million, a decrease of
US$10 million. 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 0.55%, or an increase of 5 bps.
Non-interest expenses for the quarter were US$1,261 million, which included US$52 million of restructuring charges.
Non-interest expense increased US$5 million, compared with the
fourth quarter last year, primarily due to the restructuring
charges and business volume growth, partially offset by
productivity savings and an adjustment in post-retirement benefit
costs.
The efficiency ratio for the quarter was 56.5%, compared with
57.3% in the fourth quarter last year.
Quarterly comparison – Q4 2019 vs. Q3 2019
U.S. Retail net income decreased $96
million (US$67 million), or 7% (7% in U.S. dollars),
compared with the prior quarter. The annualized ROE for the quarter
was 11.8%, compared to 12.9%, in the prior quarter.
The contribution from TD Ameritrade was US$219 million, flat to the prior quarter, as
higher asset-based revenue and higher trading volumes in the
current quarter were offset by a gain on disposition of assets in
the Trust business in the prior quarter.
U.S. Retail Bank net income for the quarter decreased
US$66 million, or 9%, compared with the prior quarter, due to
higher PCL and restructuring charges, partially offset by higher
loan and deposit volumes.
Revenue for the quarter decreased US$17 million, or 1%,
compared with the prior quarter. Net interest income was relatively
flat, with deposit margin compression, partially offset by higher
loan and deposit volumes. Net interest margin was 3.18%, a 9 bps
decrease compared to the prior quarter primarily due to lower
deposit margins. Non‑interest income decreased US$18 million,
or 3%.
Average loan volumes increased US$3 billion, or 2%,
compared with the prior quarter, due to growth in personal loans of
4%. Average deposit volumes increased US$6 billion, or 2%,
reflecting 5% growth in business deposit volumes and a 3% increase
in sweep deposit volume from TD Ameritrade.
AUA were US$21 billion as at
October 31, 2019, relatively flat,
compared with the prior quarter. AUM were US$44 billion as at
October 31, 2019, relatively flat,
compared with the prior quarter.
PCL for the quarter increased US$32
million, or 17%, compared with the prior quarter. PCL –
impaired increased by US$65 million,
or 47%, primarily reflecting seasonal trends in the auto and credit
card portfolios and prior period parameter updates in the consumer
lending portfolios. PCL – performing decreased by US$33 million, primarily reflecting prior quarter
parameter updates in the consumer lending portfolios, partially
offset by seasonal trends in the auto and credit card 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 0.55%, or an increase of
7 bps.
Non-interest expenses for the quarter increased
US$53 million, or 4%, compared with the prior quarter,
reflecting the restructuring charges and higher costs related to
business volume growth, partially offset by an adjustment in
post-retirement benefit costs.
The efficiency ratio for the quarter was 56.5%, compared with
53.8% in the prior quarter.
|
|
|
|
|
|
|
|
|
|
TABLE 11:
WHOLESALE BANKING1
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
|
|
2019
|
|
2019
|
|
2018
|
|
Net interest income
(TEB)
|
$
|
278
|
|
$
|
198
|
|
$
|
273
|
|
Non-interest
income
|
|
570
|
|
|
716
|
|
|
658
|
|
Total
revenue
|
|
848
|
|
|
914
|
|
|
931
|
|
Provision for
(recovery of) credit losses – impaired
|
|
8
|
|
|
12
|
|
|
–
|
|
Provision for
(recovery of) credit losses – performing
|
|
33
|
|
|
(11)
|
|
|
8
|
|
Total provision for
(recovery of) credit losses
|
|
41
|
|
|
1
|
|
|
8
|
|
Non-interest
expenses
|
|
600
|
|
|
594
|
|
|
551
|
|
Provision for
(recovery of) income taxes (TEB)2
|
|
47
|
|
|
75
|
|
|
86
|
|
Net
income
|
$
|
160
|
|
$
|
244
|
|
$
|
286
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Trading-related
revenue (TEB)
|
$
|
411
|
|
$
|
500
|
|
$
|
484
|
|
Gross drawn (billions
of Canadian dollars)3
|
|
24.1
|
|
|
24.3
|
|
|
23.9
|
|
Return on common
equity4
|
|
8.5
|
%
|
|
13.4
|
%
|
|
18.4
|
%
|
Efficiency
ratio
|
|
70.8
|
|
|
65.0
|
|
|
59.2
|
|
Average number of
full-time equivalent staff
|
|
4,570
|
|
|
4,594
|
|
|
4,426
|
|
1
|
Certain comparative
amounts have been recast to conform with the presentation adopted
in the current period.
|
2
|
The reduction of the
U.S. federal corporate tax rate enacted by the U.S. Tax Act
resulted in a one-time adjustment during 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.
|
3
|
Includes gross loans
and bankers' acceptances, excluding letters of credit, cash
collateral, credit default swaps, and reserves for 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 – Q4 2019 vs. Q4 2018
Wholesale Banking net income for the quarter was $160 million, a decrease of $126 million compared with the fourth quarter
last year reflecting lower revenue, higher non-interest expenses,
and higher PCL.
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 $848
million, a decrease of $83
million compared with the fourth quarter last year primarily
reflecting derivative valuation charges of $96 million, as well as lower equity underwriting
and advisory fees, partially offset by higher debt underwriting
fees.
PCL for the quarter was $41
million, compared to $8
million in the fourth quarter last year. PCL – impaired was
$8 million. PCL – performing was
$33 million reflecting credit
migration.
Non-interest expenses were $600
million, an increase of $49
million compared with the fourth quarter last year. The
increase reflects restructuring charges of $23 million, higher securities lending fees and
software costs, and the impact of foreign exchange translation,
partially offset by lower variable compensation.
Quarterly comparison – Q4 2019 vs. Q3 2019
Wholesale Banking net income for the quarter decreased $84 million compared with the prior quarter
largely reflecting lower revenue and higher PCL.
Revenue for the quarter decreased $66
million compared with the prior quarter primarily reflecting
derivative valuation charges and lower loan fees, partially offset
by higher trading-related revenue.
PCL for the quarter was $41
million, compared to $1
million in the prior quarter. PCL – impaired was
$8 million. PCL – performing was
$33 million reflecting credit
migration.
Non-interest expenses for the quarter increased $6 million compared with the prior quarter. The
increase reflects restructuring charges of $23 million, partially offset by lower variable
compensation.
|
|
|
|
|
|
|
TABLE 12:
CORPORATE
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
|
October
31
|
July
31
|
October
31
|
|
2019
|
2019
|
2018
|
Net income (loss)
– reported
|
$
|
(240)
|
$
|
(173)
|
$
|
(181)
|
Pre-tax
adjustments for items of note1
|
|
|
|
|
|
|
Amortization of
intangibles
|
|
74
|
|
75
|
|
76
|
Total pre-tax
adjustments for items of note
|
|
74
|
|
75
|
|
76
|
Provision for
(recovery of) income taxes for items of note
|
|
12
|
|
11
|
|
13
|
Net income (loss)
– adjusted
|
$
|
(178)
|
$
|
(109)
|
$
|
(118)
|
Decomposition of
items included in net income (loss) – adjusted
|
|
|
|
|
|
|
Net corporate
expenses
|
$
|
(201)
|
$
|
(156)
|
$
|
(221)
|
Other
|
|
23
|
|
47
|
|
85
|
Non-controlling
interests
|
|
–
|
|
–
|
|
18
|
Net income (loss)
– adjusted
|
$
|
(178)
|
$
|
(109)
|
$
|
(118)
|
|
|
|
|
|
|
|
Selected
volumes
|
|
|
|
|
|
|
Average number of
full-time equivalent staff
|
|
17,316
|
|
17,277
|
|
15,864
|
|
|
1
|
For explanations of
items of note, refer to the "Non-GAAP Financial Measures –
Reconciliation of Adjusted to Reported Net Income" table in the
"How We Performed" section of this document.
|
Quarterly comparison – Q4 2019 vs. Q4 2018
Corporate segment's reported net loss for the quarter was
$240 million, compared with a
reported net loss of $181 million in
the fourth quarter last year. The year-over-year increase in
reported net loss was primarily attributable to lower contribution
from other items and non-controlling interests, partially offset by
lower net corporate expenses. 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 net pension expenses in the current
quarter, partially offset by restructuring charges of $51 million. Adjusted net loss was $178 million, compared with an adjusted net loss
of $118 million in the fourth quarter
last year.
Quarterly comparison – Q4 2019 vs. Q3 2019
Corporate segment's reported net loss for the quarter was
$240 million, compared with a
reported net loss of $173 million in
the prior quarter. The quarter-over-quarter increase in reported
net loss was primarily attributable to lower contribution of other
items and increased net corporate expenses. Net corporate expenses
increased largely reflecting restructuring charges of $51 million in the current quarter. Other items
decreased primarily reflecting lower revenue from treasury and
balance sheet management activities this quarter. Adjusted net loss
was $178 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
|
|
|
|
2019
|
|
2018
|
ASSETS
|
|
|
Cash and due from
banks
|
$
|
4,863
|
$
|
4,735
|
Interest-bearing
deposits with banks
|
|
25,583
|
|
30,720
|
|
|
|
30,446
|
|
35,455
|
Trading loans,
securities, and other
|
|
146,000
|
|
127,897
|
Non-trading financial
assets at fair value through profit or
loss
|
|
6,503
|
|
4,015
|
Derivatives
|
|
48,894
|
|
56,996
|
Financial assets
designated at fair value through profit or
loss
|
|
4,040
|
|
3,618
|
Financial assets at
fair value through other comprehensive
income
|
|
111,104
|
|
130,600
|
|
|
|
316,541
|
|
323,126
|
Debt securities at
amortized cost, net of allowance for credit
losses
|
|
130,497
|
|
107,171
|
Securities
purchased under reverse repurchase
agreements
|
|
165,935
|
|
127,379
|
Loans
|
|
|
|
|
Residential mortgages
|
|
235,640
|
|
225,191
|
Consumer instalment
and other personal
|
|
180,334
|
|
172,079
|
Credit card
|
|
36,564
|
|
35,018
|
Business and
government
|
|
236,517
|
|
217,654
|
|
|
|
689,055
|
|
649,942
|
Allowance for loan
losses
|
|
(4,447)
|
|
(3,549)
|
Loans, net of
allowance for loan losses
|
|
684,608
|
|
646,393
|
Other
|
|
|
|
|
Customers' liability
under acceptances
|
|
13,494
|
|
17,267
|
Investment in TD
Ameritrade
|
|
9,316
|
|
8,445
|
Goodwill
|
|
16,976
|
|
16,536
|
Other intangibles
|
|
2,503
|
|
2,459
|
Land, buildings,
equipment, and other depreciable assets
|
|
5,513
|
|
5,324
|
Deferred tax assets
|
|
1,799
|
|
2,812
|
Amounts receivable
from brokers, dealers, and clients
|
|
20,575
|
|
26,940
|
Other assets
|
|
17,087
|
|
15,596
|
|
|
|
87,263
|
|
95,379
|
Total
assets
|
$
|
1,415,290
|
$
|
1,334,903
|
LIABILITIES
|
|
|
|
|
Trading
deposits
|
$
|
26,885
|
$
|
114,704
|
Derivatives
|
|
50,051
|
|
48,270
|
Securitization
liabilities at fair value
|
|
13,058
|
|
12,618
|
Financial liabilities
designated at fair value through profit or
loss
|
|
105,131
|
|
16
|
|
|
|
195,125
|
|
175,608
|
Deposits
|
|
|
|
|
Personal
|
|
503,430
|
|
477,644
|
Banks
|
|
16,751
|
|
16,712
|
Business and
government
|
|
366,796
|
|
357,083
|
|
|
|
886,977
|
|
851,439
|
Other
|
|
|
|
|
Acceptances
|
|
13,494
|
|
17,269
|
Obligations related
to securities sold short
|
|
29,656
|
|
39,478
|
Obligations related
to securities sold under repurchase agreements
|
|
125,856
|
|
93,389
|
Securitization
liabilities at amortized cost
|
|
14,086
|
|
14,683
|
Amounts payable to
brokers, dealers, and clients
|
|
23,746
|
|
28,385
|
Insurance-related
liabilities
|
|
6,920
|
|
6,698
|
Other liabilities
|
|
21,004
|
|
19,174
|
|
|
|
234,762
|
|
219,076
|
Subordinated notes
and debentures
|
|
10,725
|
|
8,740
|
Total
liabilities
|
|
1,327,589
|
|
1,254,863
|
EQUITY
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Common shares
|
|
21,713
|
|
21,221
|
Preferred shares
|
|
5,800
|
|
5,000
|
Treasury shares –
common
|
|
(41)
|
|
(144)
|
Treasury shares –
preferred
|
|
(6)
|
|
(7)
|
Contributed surplus
|
|
157
|
|
193
|
Retained earnings
|
|
49,497
|
|
46,145
|
Accumulated other
comprehensive income (loss)
|
|
10,581
|
|
6,639
|
|
|
|
87,701
|
|
79,047
|
Non-controlling
interests in subsidiaries
|
|
–
|
|
993
|
Total
equity
|
|
87,701
|
|
80,040
|
Total liabilities
and equity
|
$
|
1,415,290
|
$
|
1,334,903
|
1
|
The amounts as at
October 31, 2019 and October 31, 2018, have been derived from the
audited financial statements.
|
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
|
|
|
2019
|
2018
|
2019
|
2018
|
|
Interest
income2
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
8,117
|
$
|
7,519
|
$
|
31,925
|
$
|
27,790
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
1,848
|
|
1,906
|
|
7,843
|
|
6,685
|
|
|
Dividends
|
|
447
|
|
375
|
|
1,548
|
|
1,234
|
|
Deposits with
banks
|
|
126
|
|
194
|
|
683
|
|
713
|
|
|
|
10,538
|
|
9,994
|
|
41,999
|
|
36,422
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
3,313
|
|
3,126
|
|
13,675
|
|
10,489
|
|
Securitization
liabilities
|
|
121
|
|
155
|
|
524
|
|
586
|
|
Subordinated notes
and debentures
|
|
107
|
|
83
|
|
395
|
|
337
|
|
Other
|
|
822
|
|
874
|
|
3,474
|
|
2,771
|
|
|
|
4,363
|
|
4,238
|
|
18,068
|
|
14,183
|
|
Net interest
income
|
|
6,175
|
|
5,756
|
|
23,931
|
|
22,239
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
Investment and
securities services
|
|
1,246
|
|
1,189
|
|
4,872
|
|
4,714
|
|
Credit
fees
|
|
322
|
|
311
|
|
1,289
|
|
1,210
|
|
Net securities gain
(loss)
|
|
31
|
|
34
|
|
78
|
|
111
|
|
Trading income
(loss)
|
|
237
|
|
322
|
|
1,047
|
|
1,052
|
|
Income (loss) from
non-trading financial instruments at fair value through profit or
loss
|
|
6
|
|
22
|
|
121
|
|
48
|
|
Income (loss) from
financial instruments designated at fair value through profit or
loss
|
|
(89)
|
|
(46)
|
|
8
|
|
(170)
|
|
Service
charges
|
|
743
|
|
698
|
|
2,885
|
|
2,716
|
|
Card
services
|
|
578
|
|
608
|
|
2,465
|
|
2,376
|
|
Insurance
revenue
|
|
1,124
|
|
1,047
|
|
4,282
|
|
4,045
|
|
Other income (loss)
|
|
(33)
|
|
195
|
|
87
|
|
551
|
|
|
|
4,165
|
|
4,380
|
|
17,134
|
|
16,653
|
|
Total
revenue
|
|
10,340
|
|
10,136
|
|
41,065
|
|
38,892
|
|
Provision for
credit losses
|
|
891
|
|
670
|
|
3,029
|
|
2,480
|
|
Insurance claims
and related expenses
|
|
705
|
|
684
|
|
2,787
|
|
2,444
|
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
2,744
|
|
2,680
|
|
11,244
|
|
10,377
|
|
Occupancy, including
depreciation
|
|
475
|
|
452
|
|
1,835
|
|
1,765
|
|
Equipment, including
depreciation
|
|
318
|
|
276
|
|
1,165
|
|
1,073
|
|
Amortization of other
intangibles
|
|
211
|
|
217
|
|
800
|
|
815
|
|
Marketing and
business development
|
|
206
|
|
257
|
|
769
|
|
803
|
|
Restructuring charges
(recovery)
|
|
154
|
|
–
|
|
175
|
|
73
|
|
Brokerage-related and
sub-advisory fees
|
|
86
|
|
91
|
|
336
|
|
359
|
|
Professional and
advisory services
|
|
379
|
|
407
|
|
1,322
|
|
1,194
|
|
Other
|
|
970
|
|
986
|
|
4,374
|
|
3,736
|
|
|
|
5,543
|
|
5,366
|
|
22,020
|
|
20,195
|
|
Income before
income taxes and equity in net income of an investment in TD
Ameritrade
|
|
3,201
|
|
3,416
|
|
13,229
|
|
13,773
|
|
Provision for
(recovery of) income taxes
|
|
646
|
|
691
|
|
2,735
|
|
3,182
|
|
Equity in net
income of an investment in TD Ameritrade
|
|
301
|
|
235
|
|
1,192
|
|
743
|
|
Net income
|
|
2,856
|
|
2,960
|
|
11,686
|
|
11,334
|
|
Preferred
dividends
|
|
68
|
|
51
|
|
252
|
|
214
|
|
Net income
available to common shareholders and non-controlling
interests
|
|
|
|
|
|
|
|
|
|
|
in
subsidiaries
|
$
|
2,788
|
$
|
2,909
|
$
|
11,434
|
$
|
11,120
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Common shareholders
|
$
|
2,788
|
$
|
2,891
|
$
|
11,416
|
$
|
11,048
|
|
|
Non-controlling
interests in subsidiaries
|
|
–
|
|
18
|
|
18
|
|
72
|
|
Earnings per
share (Canadian dollars)
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.54
|
$
|
1.58
|
$
|
6.26
|
$
|
6.02
|
|
Diluted
|
|
1.54
|
|
1.58
|
|
6.25
|
|
6.01
|
|
Dividends per
common share (Canadian dollars)
|
|
0.74
|
|
0.67
|
|
2.89
|
|
2.61
|
|
1
|
The amounts for the
three months ended October 31, 2019, and October 31, 2018, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2019 and
October 31, 2018, have been derived from the audited
financial statements.
|
2
|
Includes $8,751
million and $34,828 million, for the three and twelve months ended
October 31, 2019, respectively, which has been calculated based on
the effective interest rate method.
|
Certain comparative amounts have been recast 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
|
|
|
|
|
2019
|
2018
|
2019
|
2018
|
|
Net income
|
$
|
2,856
|
$
|
2,960
|
$
|
11,686
|
$
|
11,334
|
|
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
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized
gains (losses) on debt securities at fair value through
other
|
|
|
|
|
|
|
|
|
|
|
|
comprehensive
income
|
|
(20)
|
|
(81)
|
|
110
|
|
(261)
|
|
|
Reclassification to
earnings of net losses (gains) in respect of debt securities at
fair value
|
|
|
|
|
|
|
|
|
|
|
|
through other
comprehensive income
|
|
(23)
|
|
(16)
|
|
(31)
|
|
(22)
|
|
|
Reclassification to
earnings of changes in allowance for credit losses on debt
securities at fair
|
|
|
|
|
|
|
|
|
|
|
|
value through other
comprehensive income
|
|
1
|
|
(1)
|
|
(1)
|
|
(1)
|
|
|
|
|
|
(42)
|
|
(98)
|
|
78
|
|
(284)
|
|
|
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
|
|
(103)
|
|
780
|
|
(165)
|
|
1,323
|
|
|
Net gains (losses) on
hedges of investments in foreign operations
|
|
(1)
|
|
(184)
|
|
132
|
|
(288)
|
|
|
|
|
|
(104)
|
|
596
|
|
(33)
|
|
1,035
|
|
|
Net change in
gains (losses) on derivatives designated as cash flow
hedges
|
|
|
|
|
|
|
|
|
|
|
Change in gains
(losses) on derivatives designated as cash flow
hedges
|
|
834
|
|
(146)
|
|
3,459
|
|
(1,624)
|
|
|
Reclassification to
earnings of losses (gains) on cash flow hedges
|
|
(47)
|
|
(196)
|
|
519
|
|
(455)
|
|
|
|
|
|
787
|
|
(342)
|
|
3,978
|
|
(2,079)
|
|
Items that will
not be subsequently reclassified to net
income
|
|
|
|
|
|
|
|
|
|
Actuarial gains
(losses) on employee benefit plans
|
|
(233)
|
|
259
|
|
(921)
|
|
622
|
|
Change in net
unrealized gains (losses) on equity securities designated at fair
value through
|
|
|
|
|
|
|
|
|
|
|
other comprehensive
income
|
|
(5)
|
|
(15)
|
|
(95)
|
|
38
|
|
Change in fair value
due to credit risk on financial liabilities designated at fair
value through
|
|
|
|
|
|
|
|
|
|
|
profit or
loss
|
|
12
|
|
–
|
|
14
|
|
–
|
|
|
|
|
|
(226)
|
|
244
|
|
(1,002)
|
|
660
|
|
Total other
comprehensive income (loss), net of income
taxes
|
|
415
|
|
400
|
|
3,021
|
|
(668)
|
|
Total
comprehensive income (loss), net of income
taxes
|
$
|
3,271
|
$
|
3,360
|
$
|
14,707
|
$
|
10,666
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Common shareholders
|
$
|
3,203
|
$
|
3,291
|
$
|
14,437
|
$
|
10,380
|
|
|
Preferred
shareholders
|
|
68
|
|
51
|
|
252
|
|
214
|
|
|
Non-controlling
interests in subsidiaries
|
|
–
|
|
18
|
|
18
|
|
72
|
|
1
|
The amounts for the
three months ended October 31, 2019, and October 31, 2018, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2019 and
October 31, 2018, have been derived from the 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
|
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
Change in unrealized
gains (losses) on debt securities at fair value through
|
|
|
|
|
|
|
|
|
|
|
other comprehensive
income
|
$
|
(11)
|
$
|
(24)
|
$
|
21
|
$
|
(139)
|
|
Less:
Reclassification to earnings of net losses (gains) in respect of
debt securities at fair value
|
|
|
|
|
|
|
|
|
|
|
through other
comprehensive income
|
|
4
|
|
8
|
|
(1)
|
|
13
|
|
Less:
Reclassification to earnings of changes in allowance for credit
losses on debt securities at
|
|
|
|
|
|
|
|
|
|
|
fair value through
other comprehensive income
|
|
–
|
|
–
|
|
–
|
|
–
|
|
Unrealized gains
(losses) on investments in foreign operations
|
|
–
|
|
–
|
|
–
|
|
–
|
|
Net gains (losses) on
hedges of investments in foreign operations
|
|
–
|
|
(67)
|
|
48
|
|
(104)
|
|
Change in gains
(losses) on derivatives designated as cash flow hedges
|
|
305
|
|
(11)
|
|
1,235
|
|
(473)
|
|
Less:
Reclassification to earnings of losses (gains) on cash flow
hedges
|
|
36
|
|
110
|
|
(157)
|
|
283
|
|
Actuarial gains
(losses) on employee benefit plans
|
|
(80)
|
|
93
|
|
(324)
|
|
243
|
|
Change in net
unrealized gains (losses) on equity securities designated at fair
value
|
|
|
|
|
|
|
|
|
|
|
through other
comprehensive income
|
|
(2)
|
|
(5)
|
|
(35)
|
|
20
|
|
Change in fair value
due to credit risk on financial liabilities designated at fair
value through
|
|
|
|
|
|
|
|
|
|
|
profit or
loss
|
|
4
|
|
–
|
|
4
|
|
–
|
|
Total income
taxes
|
$
|
176
|
$
|
(132)
|
$
|
1,107
|
$
|
(749)
|
|
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
|
|
|
2019
|
2018
|
2019
|
2018
|
|
Common shares
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
21,722
|
$
|
21,099
|
$
|
21,221
|
$
|
20,931
|
|
Proceeds from shares
issued on exercise of stock options
|
|
27
|
|
28
|
|
124
|
|
152
|
|
Shares issued as a
result of dividend reinvestment plan
|
|
68
|
|
94
|
|
357
|
|
366
|
|
Shares issued in
connection with acquisitions
|
|
–
|
|
–
|
|
366
|
|
–
|
|
Purchase of shares
for cancellation and other
|
|
(104)
|
|
–
|
|
(355)
|
|
(228)
|
|
Balance at end of
period
|
|
21,713
|
|
21,221
|
|
21,713
|
|
21,221
|
|
Preferred shares
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
5,800
|
|
4,850
|
|
5,000
|
|
4,750
|
|
Issue of shares
|
|
–
|
|
400
|
|
800
|
|
750
|
|
Redemption of shares
|
|
–
|
|
(250)
|
|
–
|
|
(500)
|
|
Balance at end of
period
|
|
5,800
|
|
5,000
|
|
5,800
|
|
5,000
|
|
Treasury shares –
common
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
(44)
|
|
(168)
|
|
(144)
|
|
(176)
|
|
Purchase of shares
|
|
(2,254)
|
|
(2,134)
|
|
(9,782)
|
|
(8,295)
|
|
Sale of shares
|
|
2,257
|
|
2,158
|
|
9,885
|
|
8,327
|
|
Balance at end of
period
|
|
(41)
|
|
(144)
|
|
(41)
|
|
(144)
|
|
Treasury shares –
preferred
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
(4)
|
|
(3)
|
|
(7)
|
|
(7)
|
|
Purchase of shares
|
|
(40)
|
|
(26)
|
|
(151)
|
|
(129)
|
|
Sale of shares
|
|
38
|
|
22
|
|
152
|
|
129
|
|
Balance at end of
period
|
|
(6)
|
|
(7)
|
|
(6)
|
|
(7)
|
|
Contributed
surplus
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
157
|
|
195
|
|
193
|
|
214
|
|
Net premium
(discount) on sale of treasury shares
|
|
3
|
|
–
|
|
(22)
|
|
(2)
|
|
Issuance of stock
options, net of options exercised
|
|
(2)
|
|
(1)
|
|
(8)
|
|
(12)
|
|
Other
|
|
(1)
|
|
(1)
|
|
(6)
|
|
(7)
|
|
Balance at end of
period
|
|
157
|
|
193
|
|
157
|
|
193
|
|
Retained
earnings
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
48,818
|
|
44,223
|
|
46,145
|
|
40,489
|
|
Impact on adoption of
IFRS 152
|
|
–
|
|
n/a3
|
|
(41)
|
|
n/a
|
|
Impact on adoption of
IFRS 94
|
|
–
|
|
–
|
|
–
|
|
53
|
|
Net income
attributable to shareholders
|
|
2,856
|
|
2,942
|
|
11,668
|
|
11,262
|
|
Common dividends
|
|
(1,338)
|
|
(1,223)
|
|
(5,262)
|
|
(4,786)
|
|
Preferred dividends
|
|
(68)
|
|
(51)
|
|
(252)
|
|
(214)
|
|
Share issue expenses
and others
|
|
–
|
|
(6)
|
|
(9)
|
|
(10)
|
|
Net premium on
repurchase of common shares and redemption of preferred shares, and
other
|
|
(538)
|
|
–
|
|
(1,880)
|
|
(1,273)
|
|
Actuarial gains
(losses) on employee benefit plans
|
|
(233)
|
|
259
|
|
(921)
|
|
622
|
|
Realized gains
(losses) on equity securities designated at fair value through
other comprehensive income
|
|
–
|
|
1
|
|
49
|
|
2
|
|
Balance at end of
period
|
|
49,497
|
|
46,145
|
|
49,497
|
|
46,145
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
Net unrealized
gain (loss) on debt securities at fair value through other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
365
|
|
343
|
|
245
|
|
510
|
|
Impact on adoption of
IFRS 9
|
|
–
|
|
–
|
|
–
|
|
19
|
|
Other comprehensive
income (loss)
|
|
(43)
|
|
(97)
|
|
79
|
|
(283)
|
|
Allowance for credit
losses
|
|
1
|
|
(1)
|
|
(1)
|
|
(1)
|
|
Balance at end of
period
|
|
323
|
|
245
|
|
323
|
|
245
|
|
Net unrealized
gain (loss) on equity securities designated at fair value through
other comprehensive income:
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
(35)
|
|
70
|
|
55
|
|
113
|
|
Impact on adoption of
IFRS 9
|
|
–
|
|
–
|
|
–
|
|
(96)
|
|
Other comprehensive
income (loss)
|
|
(5)
|
|
(14)
|
|
(46)
|
|
40
|
|
Reclassification of
loss (gain) to retained earnings
|
|
–
|
|
(1)
|
|
(49)
|
|
(2)
|
|
Balance at end of
period
|
|
(40)
|
|
55
|
|
(40)
|
|
55
|
|
Change in fair
value due to credit risk on financial liabilities designated at
fair value through
|
|
|
|
|
|
|
|
|
|
|
profit or
loss:
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
2
|
|
–
|
|
–
|
|
–
|
|
Other comprehensive
income (loss)
|
|
12
|
|
–
|
|
14
|
|
–
|
|
Balance at end of
period
|
|
14
|
|
–
|
|
14
|
|
–
|
|
Net unrealized
foreign currency translation gain (loss) on investments in foreign
operations, net of hedging
activities:
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
8,897
|
|
8,230
|
|
8,826
|
|
7,791
|
|
Other comprehensive
income (loss)
|
|
(104)
|
|
596
|
|
(33)
|
|
1,035
|
|
Balance at end of
period
|
|
8,793
|
|
8,826
|
|
8,793
|
|
8,826
|
|
Net gain (loss) on
derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
704
|
|
(2,145)
|
|
(2,487)
|
|
(408)
|
|
Other comprehensive
income (loss)
|
|
787
|
|
(342)
|
|
3,978
|
|
(2,079)
|
|
Balance at end of
period
|
|
1,491
|
|
(2,487)
|
|
1,491
|
|
(2,487)
|
|
Total accumulated
other comprehensive income
|
|
10,581
|
|
6,639
|
|
10,581
|
|
6,639
|
|
Total
shareholders' equity
|
|
87,701
|
|
79,047
|
|
87,701
|
|
79,047
|
|
Non-controlling
interests in subsidiaries
|
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
–
|
|
993
|
|
993
|
|
983
|
|
Net income
attributable to non-controlling interests in subsidiaries
|
|
–
|
|
18
|
|
18
|
|
72
|
|
Redemption of
non-controlling interests in subsidiaries
|
|
–
|
|
–
|
|
(1,000)
|
|
–
|
|
Other
|
|
–
|
|
(18)
|
|
(11)
|
|
(62)
|
|
Balance at end of
period
|
|
–
|
|
993
|
|
–
|
|
993
|
|
Total equity
|
$
|
87,701
|
$
|
80,040
|
$
|
87,701
|
$
|
80,040
|
|
|
|
|
|
|
|
|
|
|
|
|
1
|
The amounts for the
three months ended October 31, 2019, and October 31, 2018, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2019 and
October 31, 2018, have been derived from the audited
financial statements.
|
2
|
IFRS 15, Revenue
from Contracts with Customers (IFRS 15).
|
3
|
Not
applicable.
|
4
|
IFRS 9, Financial
Instruments (IFRS 9).
|
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
|
|
|
|
2019
|
2018
|
2019
|
2018
|
|
Cash flows from
(used in) operating
activities
|
|
|
|
|
|
|
|
|
|
Net income before
income taxes, including equity in net income of an investment in TD
Ameritrade
|
$
|
3,502
|
$
|
3,651
|
$
|
14,421
|
$
|
14,516
|
|
Adjustments to
determine net cash flows from (used in) operating activities
|
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
891
|
|
670
|
|
3,029
|
|
2,480
|
|
|
Depreciation
|
|
166
|
|
149
|
|
605
|
|
576
|
|
|
Amortization of other
intangibles
|
|
211
|
|
217
|
|
800
|
|
815
|
|
|
Net securities losses
(gains)
|
|
(31)
|
|
(34)
|
|
(78)
|
|
(111)
|
|
|
Equity in net income
of an investment in TD Ameritrade
|
|
(301)
|
|
(235)
|
|
(1,192)
|
|
(743)
|
|
|
Deferred taxes
|
|
(80)
|
|
(21)
|
|
(33)
|
|
385
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
Interest receivable
and payable
|
|
33
|
|
56
|
|
(26)
|
|
(104)
|
|
|
Securities sold under
repurchase agreements
|
|
2,648
|
|
(1,220)
|
|
32,467
|
|
4,798
|
|
|
Securities purchased
under reverse repurchase agreements
|
|
(3,291)
|
|
1,640
|
|
(38,556)
|
|
7,050
|
|
|
Securities sold short
|
|
(5,643)
|
|
124
|
|
(9,822)
|
|
3,996
|
|
|
Trading loans and
securities
|
|
(3,839)
|
|
(3,836)
|
|
(18,103)
|
|
(24,065)
|
|
|
Loans net of
securitization and sales
|
|
(10,069)
|
|
(11,727)
|
|
(41,693)
|
|
(45,620)
|
|
|
Deposits
|
|
5,740
|
|
19,976
|
|
(52,281)
|
|
53,379
|
|
|
Derivatives
|
|
143
|
|
(4,125)
|
|
9,883
|
|
(3,745)
|
|
|
Non-trading financial
assets at fair value through profit or loss
|
|
(470)
|
|
(150)
|
|
(2,397)
|
|
5,257
|
|
|
Financial assets and
liabilities designated at fair value through profit or loss
|
|
9,335
|
|
(379)
|
|
104,693
|
|
(460)
|
|
|
Securitization
liabilities
|
|
216
|
|
(13)
|
|
(157)
|
|
(1,532)
|
|
|
Current taxes
|
|
(83)
|
|
121
|
|
(771)
|
|
(780)
|
|
|
Brokers, dealers and
clients amounts receivable and payable
|
|
2,474
|
|
1,011
|
|
1,726
|
|
(1,435)
|
|
|
Other
|
|
(755)
|
|
(4,029)
|
|
(2,244)
|
|
(8,964)
|
|
Net cash from (used
in) operating activities
|
|
797
|
|
1,846
|
|
271
|
|
5,693
|
|
Cash flows from
(used in) financing activities
|
|
|
|
|
|
|
|
|
|
Issuance of
subordinated notes and debentures
|
|
–
|
|
1,750
|
|
1,749
|
|
1,750
|
|
Redemption or
repurchase of subordinated notes and debentures
|
|
106
|
|
(31)
|
|
24
|
|
(2,468)
|
|
Common shares issued
|
|
23
|
|
24
|
|
105
|
|
128
|
|
Preferred shares
issued
|
|
–
|
|
394
|
|
791
|
|
740
|
|
Repurchase of common
shares
|
|
(642)
|
|
–
|
|
(2,235)
|
|
(1,501)
|
|
Redemption of
preferred shares
|
|
–
|
|
(250)
|
|
–
|
|
(500)
|
|
Redemption of
non-controlling interests in subsidiaries
|
|
–
|
|
–
|
|
(1,000)
|
|
–
|
|
Sale of treasury
shares
|
|
2,298
|
|
2,180
|
|
10,015
|
|
8,454
|
|
Purchase of treasury
shares
|
|
(2,294)
|
|
(2,160)
|
|
(9,933)
|
|
(8,424)
|
|
Dividends paid
|
|
(1,338)
|
|
(1,180)
|
|
(5,157)
|
|
(4,634)
|
|
Distributions to
non-controlling interests in subsidiaries
|
|
–
|
|
(18)
|
|
(11)
|
|
(72)
|
|
Net cash from (used
in) financing activities
|
|
(1,847)
|
|
709
|
|
(5,652)
|
|
(6,527)
|
|
Cash flows from
(used in) investing activities
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
9,114
|
|
3,858
|
|
5,137
|
|
20,465
|
|
Activities in
financial assets at fair value through other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(7,606)
|
|
(8,091)
|
|
(24,898)
|
|
(20,269)
|
|
|
Proceeds from
maturities
|
|
9,623
|
|
7,667
|
|
37,835
|
|
30,101
|
|
|
Proceeds from sales
|
|
3,805
|
|
900
|
|
10,158
|
|
2,731
|
|
Activities in debt
securities at amortized cost
|
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(23,811)
|
|
(12,161)
|
|
(51,202)
|
|
(51,663)
|
|
|
Proceeds from
maturities
|
|
9,712
|
|
4,357
|
|
28,392
|
|
20,101
|
|
|
Proceeds from sales
|
|
285
|
|
342
|
|
1,418
|
|
670
|
|
Net purchases of
land, buildings, equipment, and other depreciable assets
|
|
(216)
|
|
(261)
|
|
(794)
|
|
(587)
|
|
Net cash acquired
from (paid for) divestitures, acquisitions, and the purchase of TD
Ameritrade shares
|
|
–
|
|
–
|
|
(540)
|
|
–
|
|
Net cash from (used
in) investing activities
|
|
906
|
|
(3,389)
|
|
5,506
|
|
1,549
|
|
Effect of exchange
rate changes on cash and due from banks
|
|
(5)
|
|
28
|
|
3
|
|
49
|
|
Net increase
(decrease) in cash and due from
banks
|
|
(149)
|
|
(806)
|
|
128
|
|
764
|
|
Cash and due from
banks at beginning of period
|
|
5,012
|
|
5,541
|
|
4,735
|
|
3,971
|
|
Cash and due from
banks at end of period
|
$
|
4,863
|
$
|
4,735
|
$
|
4,863
|
$
|
4,735
|
|
Supplementary
disclosure of cash flows from operating
activities
|
|
|
|
|
|
|
|
|
|
Amount of income
taxes paid (refunded) during the period
|
$
|
791
|
$
|
504
|
$
|
3,589
|
$
|
3,535
|
|
Amount of interest
paid during the period
|
|
4,314
|
|
4,025
|
|
17,958
|
|
13,888
|
|
Amount of interest
received during the period
|
|
10,075
|
|
9,462
|
|
40,315
|
|
34,789
|
|
Amount of dividends
received during the period
|
|
485
|
|
345
|
|
1,584
|
|
1,202
|
|
1
|
The amounts for the
three months ended October 31, 2019, and October 31, 2018, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2019 and
October 31, 2018, have been derived from the 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 Segment1,2,3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
|
|
|
For the three
months ended
|
|
|
Canadian
Retail
|
U.S.
Retail
|
Wholesale
Banking4
|
Corporate4
|
Total
|
|
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net interest income
(loss)
|
$
|
3,173
|
$
|
3,022
|
$
|
2,232
|
$
|
2,145
|
$
|
278
|
$
|
273
|
$
|
492
|
$
|
316
|
$
|
6,175
|
$
|
5,756
|
Non-interest income
(loss)
|
|
2,960
|
|
2,830
|
|
717
|
|
713
|
|
570
|
|
658
|
|
(82)
|
|
179
|
|
4,165
|
|
4,380
|
Total
revenue5
|
|
6,133
|
|
5,852
|
|
2,949
|
|
2,858
|
|
848
|
|
931
|
|
410
|
|
495
|
|
10,340
|
|
10,136
|
Provision for
(recovery of) credit losses
|
|
400
|
|
263
|
|
295
|
|
244
|
|
41
|
|
8
|
|
155
|
|
155
|
|
891
|
|
670
|
Insurance claims and
related expenses
|
|
705
|
|
684
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
705
|
|
684
|
Non-interest expenses
|
|
2,637
|
|
2,530
|
|
1,669
|
|
1,637
|
|
600
|
|
551
|
|
637
|
|
648
|
|
5,543
|
|
5,366
|
Income (loss) before
income taxes
|
|
2,391
|
|
2,375
|
|
985
|
|
977
|
|
207
|
|
372
|
|
(382)
|
|
(308)
|
|
3,201
|
|
3,416
|
Provision for
(recovery of) income taxes
|
|
646
|
|
634
|
|
85
|
|
91
|
|
47
|
|
86
|
|
(132)
|
|
(120)
|
|
646
|
|
691
|
Equity in net income
of an investment in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TD
Ameritrade
|
|
–
|
|
–
|
|
291
|
|
228
|
|
–
|
|
–
|
|
10
|
|
7
|
|
301
|
|
235
|
Net income (loss)
|
$
|
1,745
|
$
|
1,741
|
$
|
1,191
|
$
|
1,114
|
$
|
160
|
$
|
286
|
$
|
(240)
|
$
|
(181)
|
$
|
2,856
|
$
|
2,960
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Net interest income
(loss)
|
$
|
12,349
|
$
|
11,576
|
$
|
8,951
|
$
|
8,176
|
$
|
911
|
$
|
1,150
|
$
|
1,720
|
$
|
1,337
|
$
|
23,931
|
$
|
22,239
|
Non-interest income
(loss)
|
|
11,877
|
|
11,137
|
|
2,840
|
|
2,768
|
|
2,320
|
|
2,367
|
|
97
|
|
381
|
|
17,134
|
|
16,653
|
Total
revenue5
|
|
24,226
|
|
22,713
|
|
11,791
|
|
10,944
|
|
3,231
|
|
3,517
|
|
1,817
|
|
1,718
|
|
41,065
|
|
38,892
|
Provision for
(recovery of) credit losses
|
|
1,306
|
|
998
|
|
1,082
|
|
917
|
|
44
|
|
3
|
|
597
|
|
562
|
|
3,029
|
|
2,480
|
Insurance claims and
related expenses
|
|
2,787
|
|
2,444
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
2,787
|
|
2,444
|
Non-interest expenses
|
|
10,735
|
|
9,473
|
|
6,411
|
|
6,100
|
|
2,393
|
|
2,125
|
|
2,481
|
|
2,497
|
|
22,020
|
|
20,195
|
Income (loss) before
income taxes
|
|
9,398
|
|
9,798
|
|
4,298
|
|
3,927
|
|
794
|
|
1,389
|
|
(1,261)
|
|
(1,341)
|
|
13,229
|
|
13,773
|
Provision for
(recovery of) income taxes
|
|
2,535
|
|
2,615
|
|
471
|
|
432
|
|
186
|
|
335
|
|
(457)
|
|
(200)
|
|
2,735
|
|
3,182
|
Equity in net income
of an investment in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TD
Ameritrade
|
|
–
|
|
–
|
|
1,154
|
|
693
|
|
–
|
|
–
|
|
38
|
|
50
|
|
1,192
|
|
743
|
Net income (loss)
|
$
|
6,863
|
$
|
7,183
|
$
|
4,981
|
$
|
4,188
|
$
|
608
|
$
|
1,054
|
$
|
(766)
|
$
|
(1,091)
|
$
|
11,686
|
$
|
11,334
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
at
|
|
|
|
Oct.
31
|
|
Oct. 31
|
|
Oct.
31
|
|
Oct.
31
|
|
Oct.
31
|
|
Oct. 31
|
|
Oct.
31
|
|
Oct.
31
|
|
Oct.
31
|
|
Oct.
31
|
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
Total
assets6
|
$
|
452,163
|
$
|
433,960
|
$
|
436,086
|
$
|
417,292
|
$
|
458,420
|
$
|
425,909
|
$
|
68,621
|
$
|
57,742
|
$
|
1,415,290
|
$
|
1,334,903
|
|
|
1
|
Certain comparative
amounts have been recast to conform with the presentation adopted
in current period.
|
2
|
The amounts for the
three months ended October 31, 2019, and October 31, 2018, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2019 and
October 31, 2018, have been derived from the audited
financial statements.
|
3
|
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.
|
4
|
Net interest income
within Wholesale Banking is calculated on a TEB. The TEB adjustment
reflected in Wholesale Banking is reversed in the Corporate
segment.
|
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, 2019 and October 31, 2018, have been derived from the
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 (or
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 (or 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 2019 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 2019 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
2019 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 December 5, 2019. 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_2019.jsp on December 5, 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
December 5, 2019, until 11:59 p.m. ET
on Thursday, January 2, 2020, by
calling 905-694-9451 or 1-800-408-3053 (toll free). The passcode is
3336790#.
Annual Meeting
Thursday, April 2, 2020
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 fifth largest bank in North America by branches and serves over 26
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 13 million
active online and mobile customers. TD had $1.4 trillion in assets on October 31, 2019. The Toronto-Dominion Bank
trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group