Toronto-Dominion Bank · TSX:TD
Toronto-Dominion Bank — TD Bank Group — Q1 2015 Earnings Presentation
34 slides from Toronto-Dominion Bank's earnings presentation, Feb 26, 2015
Slide 1: TD Bank Group Quarterly Results Presentation Q1 2015
TD Bank Group Quarterly Results Presentation Q1 2015 Thursday February 26th, 2015
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements From time to time, the Bank makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission, and in other communications. In addition, representativ
Slide 3: Strategic Overview
Strategic Overview Solid financial results in Q1 2015 Adjusted1 earnings of $2.1B, up 5% YoY; Adjusted EPS up 6% YoY Strong results in Canadian and U.S. Retail; solid quarter for Wholesale Announced dividend increase of $0.04, up 9% 1. The Bank prepares its consolidated financial statements
Slide 4: Q1 2015 Highlights
Q1 2015 Highlights Key Themes Financial Highlights $MM Adjusted1 EPS of $1.12, up 6% from Q1/14 Results shown are Adjusted1 Q1/15 Q4/14 Q1/14 Adjusted Net income up 5% YoY Revenue2 $ 6,915 6,732 6,629 Strong growth in Retail businesses Solid Wholesale performance Expenses 4,092 4,188 3,841
Slide 5: Q1 2015 Earnings: Items of Note
Q1 2015 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $2,060 $1.09 Pre Tax After Tax Items of Note EPS (MM) (MM) Amortization of intangibles1 $73 $63 $0.03 Excluding Items of Note above Adjusted2 net income and EPS (diluted) $2,123 $1.12 1. Includes amortization of intangibles
Slide 6: Canadian Retail
Canadian Retail Key Themes P&L $MM Adjusted, where applicable1 Adjusted1 net income up 8% YoY Q1/15 QoQ YoY Strong growth in Credit Cards and Insurance Revenue $ 4,899 0% 6% Solid growth in Personal and Commercial PCL 190 -24% -17% Banking and Wealth Insurance Claims 699 -3% 2% Revenue up 6%
Slide 7: U.S. Retail
U.S. Retail Key Themes P&L US$MM Q1/15 QoQ YoY Net income up 16% YoY Revenue $ 1,907 3% -1% Revenue down 1% YoY PCL 154 23% -31% Strong loan and deposit growth Expenses 1,193 -4% -3% Lower security gains1 and Target revenue Net Income, U.S. Retail Bank $ 457 19% 15% NIM down 12 bps YoY but
Slide 8: Wholesale Banking
Wholesale Banking Key Themes P&L $MM Net income down 17% YoY Q1/15 QoQ YoY Revenue $ 711 18% -1% Revenue down 1% YoY PCL 2 NA NA Strong equities and FX performance Expenses 433 14% 5% Lower fixed income trading Net Income $ 192 20% -17% Expenses up 5% YoY ROE 13.0% Higher initiative spen
Slide 9: Corporate Segment
Corporate Segment Key Themes P&L $MM Adjusted, where applicable1 Adjusted1 net income down $105 Q1/15 Q4/14 Q1/14 MM YoY Net Corporate Expenses $ (172) $ (233) $ (165) Reflects the prior year gain on sale of TD Other 2 41 100 Ameritrade shares, the impact of Non-Controlling Interests 27 27 27 Tr
Slide 10: Capital
Capital Highlights Basel III Common Equity Tier 11 Basel III Common Equity Tier 1 ratio 9.5% 9.4% 9.5% 9.3% 9.2% Increase QoQ reflects solid 8.9% organic capital generation partially offset by actuarial losses on employee pension plans Capital allocation to segments Q1/14 Q2/14 Q3/14 Q4/14 Q1/
Slide 11: Credit Portfolio Highlights
Credit Portfolio Highlights Highlights PCL Ratio (bps)1 Ongoing strong performance across all portfolios 40 Loss rates remain at cyclically low levels 35 33 Small increase in Gross Impaired Loans (GIL) due to weakened Canadian dollar 28 29 Oil & Gas exposure is Q1/14 Q2/14 Q3/14 Q4/14 Q1/15
Slide 12: Appendix
Appendix
Slide 13: Q1 2015 Earnings: Items of Note
Q1 2015 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $2,060 $1.09 Revenue/ Pre Tax After Tax Items of note EPS Segment Expense (MM) (MM) Line Item2 Amortization of intangibles1 $73 $63 $0.03 Corporate pg 9, line 10 Excluding Items of Note above Adjusted3 net income and EPS (d
Slide 14: Canadian Retail: Net Interest Margin
Canadian Retail Net Interest Margin Highlights Net Interest Margin Margin on average earning assets On Average Earning Assets of 2.88%, down 4 bps QoQ 2.97% 2.98% Primarily due to competitive pricing, a 2.94% 2.92% decline in refinancing revenue and the 2.88% low rate environment On Loans 2.00%
Slide 15: Canadian Retail: Deposit Growth
Canadian Retail Deposit Growth Highlights Average Deposits $B 5% Growth Average personal deposit volumes YoY increased 3% YoY Chequing and savings accounts up 9%, partially offset by lower term deposits 255 259 Average business deposit volumes 248 247 250 18 18 increased 8% YoY 17 17 17 81 83
Slide 16: Canadian Retail: Loan Growth
Canadian Retail Loan Growth Highlights Average Loans $B 6% Growth Solid personal lending volume YoY growth of 5% YoY Real estate secured lending growth of 4% YoY 335 339 325 329 321 Strong business lending volume 52 53 50 51 growth of 9% YoY 49 19 19 17 19 19 16 16 Credit card balances up 9%
Slide 17: Canadian Retail: Personal and Commercial Banking
Canadian Retail Personal and Commercial Banking Revenue Average Card Balances 25 $MM $B 18.7 18.9 20 2,919 2,906 3,024 3,035 3,044 14.9 15.4 739 755 764 15 723 729 8.3 10 2,196 2,177 2,285 2,280 2,280 5 0 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 2011 2012 2013 2014 YTD 2015 Net Interest Income Non-interest Inc
Slide 18: Canadian Retail: Wealth
Canadian Retail Wealth Revenue AUA1 and AUM2 $MM $B 825 837 841 302 778 786 293 285 115 116 118 278 116 112 264 131 122 116 135 138 242 227 227 219 211 579 599 607 527 536 AUA AUM Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Wealth Fee & Other Wealth Transaction Wealth NII Net Income
Slide 19: Canadian Retail: Insurance
Canadian Retail Insurance Revenue Gross Originated Insurance $MM Premiums 1,085 1,048 1,014 $MM 1,078 986 1,026 932 950 839 861 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Net Income Insurance Claims and Related $MM Expenses $MM 149 132 136 131 92 683 771 720 699 659 Q1/14 Q2/14 Q3/1
Slide 20: U.S. Retail: Deposit Growth
U.S. Retail Deposit Growth Highlights Average Deposits US$B 5% Growth Average personal deposit volumes YoY up 6% YoY Average business deposit volumes 201 204 up 7% YoY 194 197 197 Average TD Ameritrade IDAs1 up 3% YoY 73 73 72 75 75 57 57 58 60 56 65 67 68 68 69 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 P
Slide 21: U.S. Retail: Loan Growth
U.S. Retail Loan Growth Highlights Average Loans US$B 9% Growth Average personal loans increased YoY 3% YoY Average business loans increased 117 114 15% YoY 107 108 111 58 61 53 54 56 54 54 55 56 56 Q1/14 Q2/14 Q3/14 Q4/14 Q1/15 Personal Commercial 21
Slide 22: TD Ameritrade
TD Ameritrade Highlights TD Bank Group’s Share of TD Ameritrade’s Net Income1 TD’s share of TD Ameritrade’s net US$MM income was C$90 MM in Q1/15, up 32% YoY mainly due to: Increased earnings in TD Ameritrade, FX translation and lower tax related items $79 $77 $70 $69 $65 TD Ameritrade Results
Slide 23: Canadian Housing Market
Canadian Housing Market Portfolio Q1/15 Gross Loans Outstanding $236 B Canadian RESL Percentage Insured 61% Uninsured Residential Mortgages Current LTV1 60% Condo Borrower Gross Loans Outstanding $30 B (Residential Mortgages) Percentage Insured 71% Gross Loans Outstanding $6 B Condo Borrower 39% (HE
Slide 24: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q4/14 Q1/15 Canadian Retail Portfolio $ 337.9 $ 339.6 Personal $ 285.0 $ 285.6 Residential Mortgages 175.3 175.3 Home Equity Lines of Credit (HELOC) 59.4 59.7 Indirect Auto 16.5 16.9 Unsecured Lines of Credit 9.1 9.2 Credit
Slide 25: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights $1,233 GIL formations remain stable $1,163 $1,168 in the Canadian Retail portfolio $1,125 $1,092 Excluding the impact of foreign $476 / 42 bps exchange, U.S. GIL formations $403 / 34 bps $397 / 33 bps $452 /
Slide 26: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights Gross Impaired Loans ratio $2,967 remains stable $2,861 $2,746 $2,731 $13 / 4 bps Excluding the impact of foreign $41 / 19 bps $2,636 $41 / 18 bps $12 / 5 bps exchange, U.S. GIL increased by $21 / 9 bps $29MM USD $1,610 / 1
Slide 27: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio PCL1: $MM and Ratios2 Highlights PCL remains at low levels Canadian PCL reduction driven $454 by proceeds from a debt sale and $395 $397 a recovery in the Commercial $ (3) / NM $368 Bank $329 $(2) / NM $236 / 84 bps $3 / NM $174 / 62 bps $164 / 53 b
Slide 28: Canadian Personal Banking
Canadian Personal Banking Q1/15 Canadian Personal Banking1 Gross Loans ($B) GIL/ Loans GIL ($MM) PCL2 ($MM) Highlights Residential Mortgages 175 0.26% 452 3 Credit quality remains strong in Home Equity Lines of Credit (HELOC) 60 0.44% 260 1 the Canadian Personal portfolio Indirect Auto 17 0.26% 44
Slide 29: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q1/15 Canadian Commercial and Gross GIL PCL1 Highlights Loans/BAs Wholesale Banking ($B) ($MM) ($MM) Canadian Commercial and Commercial Banking2 54 118 3 Wholesale Banking portfolios Wholesale 30 13 0 continue to perform well Total Canadian Commercial and
Slide 30: U.S. Personal Banking – U.S. Dollars
U.S. Personal Banking – U.S. Dollars Q1/15 Highlights Gross Loans GIL/ GIL U.S. Personal Banking1 ($B) Loans ($MM) PCL2 Continued good asset quality ($MM) Residential Mortgages 21 1.36% 282 3 in U.S. Personal Home Equity Lines of Credit (HELOC)3 10 3.32% 342 19 Increasing GILs are a result of co
Slide 31: U.S. Commercial Banking – U.S. Dollars
U.S. Commercial Banking – U.S. Dollars Q1/15 U.S. Commercial Banking1 Gross Loans/BAs GIL ($MM) PCL2 ($MM) Highlights ($B) Commercial Real Estate (CRE) 17 216 4 Sustained portfolio quality in Non-residential Real Estate 13 141 2 U.S. Commercial Banking Residential Real Estate 4 75 2 PCL increase
Slide 32: Q1 2015 Financial Highlights
Q1 2015 Financial Highlights Description of Adjusted and Reported Results Financial Highlights $MM Q1/15 Q4/14 Q1/14 Revenue2 (adjusted1) $ 6,915 6,732 6,629 Revenue (reported) 7,614 7,452 7,565 Expenses (adjusted) $ 4,092 4,188 3,841 Expenses (reported) 4,165 4,331 4,096 Net Income (adjusted) $ 2,1
Slide 33: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: Grand Prix for Best Overall [email protected] Investor Relations: Large Cap Best Investor Relations by Sector: Financial Services Website: Best Investor Relations www.td.com/investor by a CFO: Large Cap Best Investor Relations Office
Slide 34: TD Bank Group Quarterly Results Presentation Q1 2015
TD Bank Group Quarterly Results Presentation Q1 2015 Thursday February 26th, 2015