TD Conservative ETF Portfolio · TSX:TCON
TD Conservative ETF Portfolio — TD Bank Financial Group — Investor Presentation (June 2009)
34 slides from TD Conservative ETF Portfolio's investor presentation, June 2009
Slide 1: Investor Presentation
Investor Presentation June 2009
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements From time to time, the Bank makes written and oral forward-looking statements, including in this document, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission (SEC), and in other communications. In addition, the Bank’s
Slide 3: Contents
Contents TD Bank Financial Group Canada: Overview Appendix 3
Slide 4: TD Bank Financial Group
TD Bank Financial Group n The first truly North American bank • Leader in service and convenience in Canada and the U.S. o Lower risk retail focus • 85% adjusted earnings from retail1 • Best return for risk undertaken1 p Disciplined execution • Strong credit culture • Robust capital, liquidity, and
Slide 5: TD Bank Financial Group: In Perspective
TD Bank Financial Group: In Perspective Compared to: Q2 2009 Canadian North American (In U.S.$B)1,2 Peers7 Peers8 Total Assets $482 2nd 6th Total Deposits $337 2nd 6th Market Cap3 $43.3 2nd 5th Adj. Net Income4 (Trailing 4 Quarters) $3.6 3rd 7th Adj. Retail Earnings5 (Trailing 4 Quarters) $3.7 1st 1
Slide 6: Q2 2009 Financial Results
Q2 2009 Financial Results P&L (C$MM)1 Q2 2008 Q1 2009 Q2 2009 QoQ YoY Revenue $ 3,388 $ 4,150 $ 4,325 4% 28% PCL 232 537 656 22% 183% Expenses 2,206 3,020 3,051 -1% 38% Adjusted Net Income $ 973 $ 1,149 $ 1,089 -5% 12% Adjusted EPS (diluted) $ 1.32 $ 1.34 $ 1.23 -8% -7% Tier 1 Capital 9.1% 10.1% 10.
Slide 7: Managing through Current Environment
Managing through Current Environment Get across the recession valley ̶ Carefully manage capital, funding, liquidity and risk Keep our business model intact ̶ Preserve our performance, convenience and service culture Emerge with momentum on our side ̶ Continue to invest in our core growth engin
Slide 8: Major Businesses
Major Businesses Canadian P&C Global Wealth TD Ameritrade1 U.S. P&C Wholesale 1. TDBFG has an investment in TD Ameritrade. 8
Slide 9: Main Businesses
Main Businesses Adjusted Earnings Breakdown1 Q2 2009 C$1.1B Global TD Wealth AMTD U.S. Retail 28% 4% 7% U.S. P&C 24% Canadian P&C 50% Wholesale 15% Canadian Retail 57% 85% of earnings from retail operations 9 1. Based on adjusted earnings as described on slide #4. For the purpose of calculating cont
Slide 10: Canadian Personal and Commercial Banking
Canadian Personal and Commercial Banking Lead in service and convenience ̶ Winner of J.D. Power1, Synovate awards2 ̶ 50% longer branch hours than peers ̶ Excellent brand recognition Strong market position ̶ #1 or #2 market share in most retail products3 ̶ Client referrals through integrated rela
Slide 11: Canadian Personal and Commercial Banking
Canadian Personal and Commercial Banking Canadian P&C Earnings ($MM) 1 GR 14% 5-ye ar C A $2,424 $2,253 $1,966 $1,702 $1,450 $1,242 $1,173 2003 2004 2005 2006 2007 2008 YTD Q2 2009 1. 5-year CAGR is calculated based on compound annual growth from 2003 to 2008. Also see the Canadian P&C segment discu
Slide 12: Wealth Management
Wealth Management Leading market positions ̶ #1 online brokerage1, #2 in mutual fund assets2 ̶ Industry-leading online research tools ̶ Strong client engagement Continue focused investments for the future ̶ Adding client-facing advisors ̶ Strategically growing diversified wealth offerings Inve
Slide 13: Wealth Management
Wealth Management Wealth Management Earnings ($MM) 1 % AG R 26 $762 $769 ar C 5-ye $590 $261 $289 $432 $180 $352 $108 $85 $278 $243 U.S. Wealth $501 $480 Management2 $61 $410 $125 $324 $267 Canadian Wealth $182 Management $153 2003 2004 2005 2006 2007 2008 YTD Q2 2009 1. 5-year CAGR is calculated ba
Slide 14: U.S. Personal and Commercial Banking
U.S. Personal and Commercial Banking Lead in service and convenience ̶ Rated #1 by J.D. Power for Customer Satisfaction1 ̶ 50% longer hours than the competition2 ̶ Unique brand positioning and culture: “America’s Most Convenient Bank” Enviable footprint with continued organic growth ̶ More than
Slide 15: U.S. Personal and Commercial Banking
U.S. Personal and Commercial Banking U.S. P&C Adjusted Earnings1 (C$MM) 2 $806 72% AGR ar C e 3-y $588 $359 $255 $158 2005 2006 2007 2008 YTD Q2 2009 1. See slide #4 for definition of Adjusted Earnings. Also see the U.S. P&C segment discussion in the Business Segment Analysis section in the 2008, 20
Slide 16: Wholesale Banking
Wholesale Banking Strategic focus on client-driven franchise business ̶ Deep client relationships ̶ Cross-sell multiple products and services Build on strong domestic operations ̶ Top 3 dealer in Canada1 Align businesses to support and enhance North American franchise Strong performance 1. #3
Slide 17: Wholesale Banking
Wholesale Banking Wholesale Adjusted Earnings Growth1 ($MM) $824 $664 $588 $529 $551 $438 $65 2003 2004 2005 2006 2007 2008 YTD Q2 2009 ROIC 9% 25% 22% 28% 30% 2% 20% 1. See slide #4 for definition of Adjusted Earnings. Also see the Wholesale segment discussion in the Business Segment Analysis secti
Slide 18: Solid Growth and Return Across Businesses
Solid Growth and Return Across Businesses Adjusted Earnings1 R C AG s: 14% (C$MM) ea r ng 5-y Earni S: 10% $4,189 $3,813 d P d j uste sted E A dj u A $3,376 $2,861 $2,238 $2,485 Wholesale Banking $1,945 U.S. P&C Wealth Management Canadian P&C 2003 2004 2005 2006 2007 2008 YTD Q2 2009 Retail as % of
Slide 19: Strong focus on risk-return
Strong focus on risk-return Return on Risk-Weighted Assets1,2,3 2.09% 58% 1.68% greater than average 0.66% TD Canadian Peers U.S. Peers Best return for risk undertaken 1. TD based on Q2 2009 adjusted earnings, as described on slide #4. 2. Canadian Peers – other big 4 banks (RY, BNS, BMO and CM) adju
Slide 20: TD Bank Financial Group
TD Bank Financial Group n The first truly North American bank o Lower risk retail focus p Disciplined execution 20
Slide 21: Contents
Contents TD Bank Financial Group Canada: Overview Appendix 21
Slide 22: Why Canadian Economy Outperforms
Why Canadian Economy Outperforms Canada’s economy is being weakened by the global recession, but the domestic economy is holding up far better than its international peers Canada’s real estate correction is already showing signs of improvement, while the decline in the U.S. remains deeply entren
Slide 23: Canadian Strengths
Canadian Strengths Average Annual Real GDP1 Growth, 1997 - 2008 Canadian economy 3.13 outperformed over 2.84 2.76 last decade 2.15 1.03 Canada U.S. UK Euro-area Japan Canadian economy in Canadian Real GDP Growth2 a recession, but tide Y/Y % chg. 6 will turn as global 4 5 Forecast economy recovers 3
Slide 24: Near Term Slowdown
Near Term Slowdown TD Commodity Price Index1 Commodity prices Index; 1997=100 have corrected from 400 Forecast record high levels, but 350 300 Overall TDCI have most likely 250 bottomed out 200 150 100 TDCI Ex. Energy 50 0 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 U.S. and Can
Slide 25: Long Term Support
Long Term Support Canadian Unemployment1 Recession will raise Per cent unemployment, but 14 demographics suggest 13 Forecast 12 peak will be lower 11 10 than in past 9 downturns 8 7 6 5 4 19 7 0 19 7 3 19 7 6 19 7 9 19 8 2 19 8 5 19 8 8 19 9 1 19 9 4 19 9 7 2 0 0 0 2 0 0 3 2 0 0 6 2 0 0 9 Canadian F
Slide 26: Solid Financial System in Canada
Solid Financial System in Canada Strong retail and commercial banks ̶ Conservative lending standards ̶ All major wholesale dealers owned by Canadian banks, with stable retail earnings base to absorb any wholesale write-offs Responsive government ̶ Extension of program to buy bank government-guar
Slide 27: Canadian Mortgage Market is Different from the U.S.
Canadian Mortgage Market is Different from the U.S. Canada U.S. Outstanding mortgages include earlier Conservative product offerings: Fixed or exotic products (interest only, options variable interest rate option ARMs) Borrowers often qualified using Product Borrowers typically qualified usi
Slide 28: Contents
Contents TD Bank Financial Group Canada: Overview Appendix 28
Slide 29: Gross Lending Portfolio: Loans and Acceptances
Gross Lending Portfolio: Loans and Acceptances Balances as of Q2/09 (C$B) Commercial Banking (including Small Residential Other Personal Business Banking) Mtgs/ 2% 10% Other Home Equity Personal 7% 11% U.S. P&C 26% Commercial Real Estate 6% Commercial & Industrial 11% Residential Mtgs/ HELOC 41% Can
Slide 30: Credit Quality
Credit Quality GILs / Avg Allowance for NCOs / Avg Total TDBFG Loans + BAs Credit Losses / Loans + BAs (%) GILs (%) (%) 0.78 116 0.53 Cdn Peer Avg 1.35 87 0.68 U.S. Peer Avg 2.31 151 2.26 Well-positioned loan portfolio 1. TD and Canadian Peers results are as of Q2/09. U.S. peers results are as of Q1
Slide 31: Credit Ratings
Credit Ratings Moody's S&P Fitch DBRS Rating¹ Aaa AA- AA- AA Strong credit ratings 1. As at April 30, 2009. Moody's: Issuer Rating, S&P: LT Foreign Issuer Credit, Fitch: LT Issuer Default Rating, DBRS: Senior Unsecured Debt. 31
Slide 32: Managing Environmental, Social, Governance Risks & Opportunities
Managing Environmental, Social, Governance Risks & Opportunities One of the top 100 most sustainable companies in the world1 ̶ One of only 5 companies in Canada Recognized by sustainability indices ̶ Dow Jones Sustainability Index North America ̶ Jantzi Social Index ̶ KLD Global Sustainability I
Slide 33: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: [email protected] Best Investor Relations by Sector: Financial Services Website: Best Investor Relations by www.td.com/investor a CEO Best Retail Investor Communications 33
Slide 34: Building the better bank every day
Building the better bank every day D Bank Financial Group
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