Toronto-dominion Bank · TSX:TD
Toronto-dominion Bank — Q4 2008 Earnings Presentation
7 slides from Toronto-dominion Bank's earnings presentation, Nov 20, 2008
Slide 1: Update on Q4 2008 Results
Update on Q4 2008 Results November 20, 2008 Caution regarding forward looking statements This presentation contains forward-looking statements made pursuant to the “safe harbour” provisions of the U.S. Private Securities Litigation Reform Act of 1995 and applicable Canadian securities legislation. F
Slide 2: Key messages
Key messages n Estimated Q4 2008 adjusted1 EPS of $0.79 o Unexpected Q4 2008 results (est.): • Wholesale earnings $(228) million • Corporate adjusted earnings $(153) million2 p F2008 adjusted retail3 earnings (est.): $4 billion q Estimated Q4 2008 Tier 1 capital 9.8% 1. The Bank’s financial results
Slide 3: Overview: CPG business
Overview: CPG business n Proprietary Credit Trading o Product Set • Bonds • Credit Default Swaps (CDS) • Standard Credit Indices / Tranches p Trading Strategies • Relative Value • Directional Trading • Special Situations q Key Risks • Credit managed with CDS, internal credit review • Other market ri
Slide 4: Example: Bond basis / CPG: Ongoing strategy
Example: Bond basis Effect on sample 3-year BBB bond Aug July Oct Change in Gain/(loss) per $1MM 31/07 31/08 31/08 spread of bond value BPS BPS BPS July to Oct July to Oct Bond spread 47 165 532 (367) $(87)M CDS spread 34 65 148 83 $23M Bond Basis 13 100 384 (284) $(64)M Bond Bondvalues valueshave h
Slide 5: Accounting implications / Q4 2008 Corporate segment
Accounting implications Future Decision Outcome Q4 08 Quarters Move eligible assets from Trading to Transferred to AFS as Available for Sale of August 1st, 2008 (AFS) Bond FV gains or ($561MM) losses accrue in Change in fair value After tax in OCI depending on flows through OCI1 OCI market movement
Slide 6: Q and A Summary
Q and A Summary n Estimated Q4 2008 adjusted EPS of $0.79 o Unexpected Q4 2008 results (est.): • Wholesale earnings $(228) million • Corporate adjusted earnings $(153) million p F2008 adjusted retail earnings (est.): $4 billion q Estimated Q4 2008 Tier 1 capital 9.8% 12 6
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