TD Active US Enhanced Dividend ETF · TSX:TUED
TD Active US Enhanced Dividend ETF — TD Bank Group — Q1 2010 Earnings Presentation
30 slides from TD Active US Enhanced Dividend ETF's earnings presentation, Mar 4, 2010
Slide 1: Q1 2010 Investor Presentation
Q1 2010 Investor Presentation Thursday March 4, 2010
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 presentation, in other filings with Canadian regulators or the U.S. Securities and Exchange Commission (SEC), and in other communications. In addition, repres
Slide 3: Strategic Overview
Strategic Overview Another record quarter for the bank Retail adjusted earnings1 of $1.1 billion Strength in Canadian Retail and Wholesale 1. The Bank’s financial results/earnings releases prepared in accordance with GAAP are referred to as “reported” results. The Bank also utilizes non-GAAP f
Slide 4: Q1 2010 Highlights
Q1 2010 Highlights Net income $MM Q1/09 Q4/09 Q1/10 QoQ YoY 1 Canadian Retail $ 659 $ 719 $ 821 14% 25% U.S. Retail1 (adjusted) 325 270 270 0% -17% Total Retail 984 989 1,091 10% 11% Wholesale 265 372 372 0% 40% Corporate (adjusted) (159) (54) (33) -39% -79% Adjusted net income2 $ 1,090 $ 1,307 $ 1,
Slide 5: Q1 2010 Earnings: Items of Note
Q1 2010 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $1,297 $1.44 Pre Tax After Tax Items of note EPS (MM) (MM) 1 1 Amortization of intangibles $149 $112 $0.13 Change in fair value of derivatives $(12) $(4) $(0.00) hedging the reclassified portfolio Integration charges relati
Slide 6: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking P&L $MM Q1/09 Q4/09 Q1/10 QoQ YoY Revenue $ 2,292 $ 2,434 $ 2,539 4% 11% PCL 266 313 315 1% 18% Expenses 1,186 1,226 1,194 -3% 1% Net Income $ 584 $ 622 $ 720 16% 23% Efficiency ratio 51.7% 50.4% 47.0% -340bps -470bps NIM1 2.82% 2.88% 2.93% 5bps 11bps • Strong
Slide 7: Wealth Management
Wealth Management P&L $MM Q1/09 Q4/09 Q1/10 QoQ YoY Revenue $ 528 $ 587 $ 590 1% 12% Expenses 419 444 446 0% 6% Net Income (Global Wealth) $ 75 $ 97 $ 101 4% 35% Equity in NI of TD AMTD1 77 59 43 -27% -44% Net Income $ 152 $ 156 $ 144 -8% -5% Efficiency ratio 79.4% 75.6% 75.6% 10bps -370bps AUM ($B)
Slide 8: U.S. Personal & Commercial Banking
U.S. Personal & Commercial Banking P&L $MM (US dollars) (adjusted, where applicable) Q1/09 Q4/09 Q1/10 QoQ YoY Revenue $ 985 $ 1,036 $ 1,087 5% 10% PCL 190 201 191 -5% 1% Expenses1 573 623 641 3% 12% Net Income1 $ 206 $ 196 $ 216 10% 5% Net Income 1 (C$) $ 248 $ 211 $ 227 8% -8% Efficiency ratio1 58
Slide 9: Wholesale Banking
Wholesale Banking P&L $MM Q1/09 Q4/09 Q1/10 QoQ YoY Revenue $ 839 $ 886 $ 913 3% 9% PCL 66 7 8 14% -88% Expenses 388 347 376 8% -3% Net Income $ 265 $ 372 $ 372 0% 40% • Another record quarter • Strong performance in fixed income and foreign exchange 9
Slide 10: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q4/09 Q1/10 Canadian Personal & Commercial Portfolio $ 170.3 $ 174.0 Personal1 $ 140.6 $ 144.0 Residential Mortgages 55.8 57.5 2/3 insured Home Equity Lines of Credit (HELOC) 56.2 57.2 Unsecured Lines of Credit 9.4 9.4 Credi
Slide 11: Gross Impaired Loans (GIL) by Portfolio
Gross Impaired Loans (GIL) by Portfolio GIL1: $MM and Ratios2 $2,315 Highlights $2,070 $1,947 $2 / NM $206 / 108 bps Increases in Gross Impaired $1,875 $2 / NM $180 / 89 bps Loans concentrated in the U.S. $37 / NM credit portfolio $1,543 $211 / 87 bps $231 / 109 bps Canadian P&C stable at 45 bps
Slide 12: Provision for Credit Losses (PCL) by Portfolio
Provision for Credit Losses (PCL) by Portfolio PCL1: $MM and Ratios2 Highlights PCL increased $27MM (3 bps) quarter over quarter $546 $5 / NM $507 Canadian P&C held steady at 68 bps $492 $480 $457 $48 / 78 bps $4 / NM General allowance for Canadian $21 / 38 bps portfolios was not increased dur
Slide 13: Portfolio Highlights
Portfolio Highlights Canadian Personal Real Estate Secured Lending volume remained primary driver of portfolio growth Visa and Unsecured Line of Credit loss rates eased slightly in Q1; expected to continue as the economic outlook improves Canadian Commercial and Wholesale Both portfolios conti
Slide 14: Appendix
Building the better bank every day D Bank Financial Group Appendix
Slide 15: Q1 2010 Earnings: Items of Note
Q1 2010 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $1,297 $1.44 Revenue/ Pre Tax After Tax Items of note EPS Segment Expense Line (MM) (MM) 2 Item 1 1 Amortization of intangibles $149 $112 $0.13 Corporate pg 13, line 13 Change in fair value of derivatives hedging the $(12)
Slide 16: Canadian Personal & Commercial Banking
Canadian Personal & Commercial Banking Net interest margin % Notes NIM on average earning assets • Net interest margin on average earning assets up 5bps QoQ and up 11bps YoY: 2.94% 2.96% 2.93% 2.82% 2.88% ̶ Strong volume growth across most banking products NIM on loans 1.89% 1.69% 1.71% 1.73% 1.62%
Slide 17: Wealth Management
Wealth Management Revenue $MM Notes • Revenue $590 million: ̶ Up 12% from Q1/09 and flat $587 $590 compared to Q4/09 $562 $528 $528 $67 $66 NII $65 ̶ Increase driven by higher fees $75 $63 $152 from: $165 $166 Transaction $131 $154 • Higher average client assets • Higher trading volumes Fee & • Cont
Slide 18: Wealth Management Performance Metrics
Wealth Management Performance Metrics AUA1 ($B) AUM2 ($B) $188 $191 $200 $163 $174 $170 $168 $171 $172 $164 Institutional $105 $101 $91 $97 $96 Retail $65 $67 $72 $74 $76 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Mutual Funds AUM2 ($B) Advisors & Planners $53 $54 717 728 722 $51 In
Slide 19: TD Ameritrade
TD Ameritrade TDBFG’s Share of TD Ameritrade’s Net Income1 US$MM $64 Highlights $58 $54 • TDBFG’s share of TD Ameritrade’s net income: C$43 million in Q1/10 $39 $41 • TD Ameritrade’s reported net income US$137 million in Q1/102 • Average trades per day: 379,000; up 6% YoY and C$ $77 $48 $68 $59 $43
Slide 20: U.S. Personal & Commercial Banking: De-Novo Strategy
U.S. Personal & Commercial Banking De-Novo De-Novo Strategy Strategy Maturing Stores (<5yrs) • Deposits consistently and significantly outpace mature store deposit growth 14 ̶ 23% of stores are maturing but account 13 for 50% of growth Conversion • New stores meeting or 10 exceeding planned deposit
Slide 21: U.S. Personal & Commercial Banking: Deposit Growth
U.S. Personal & Commercial Banking Deposit Growth Average Deposits 6% 6% (US$ billions) Growth Growth • Same stores: solid deposit YoY YoY growth and improved mix $79 $79 $80 $81 • Grew more profitable retail $76 and commercial deposits ̶ Excluding government deposit $25 $26 $26 $27 decline, deposit
Slide 22: U.S. Personal & Commercial Banking: Loan Growth
U.S. Personal & Commercial Banking Loan Growth Average Loans 6% 6% • Growth in high-quality (US$ billions) Growth Growth YoY YoY residential mortgages • Commercial lending slowing $52 $53 $53 $53 $50 due to reduced demand • Continue to outperform $35 $34 $34 industry by growing high $34 $35 quality,
Slide 23: Tier 1 Capital Ratio
Tier 1 Capital Ratio Highlights 11.1% 11.3% 11.5% • Strong capital position 10.8% ̶ Organic growth in capital through 10.1% continued earnings strength • Well-positioned for evolving regulatory environment ̶ Lower-risk, franchise wholesale dealer ̶ More than 1/3 of total assets in low or no-risk ass
Slide 24: Gross Impaired Loan Formations by Portfolio
Gross Impaired Loan Formations by Portfolio GIL Formations1: $MM and Ratios Highlights $1,062 $23/ 12 bps Gross Impaired Loan $990 $969 $974 Formations increased $88MM $927 $51 / 23 bps $9 / NM (3 bps) QoQ $123 / 48 bps $32 / NM $59 / 23 bps Formations in Canadian P&C held steady at 30 bps $526
Slide 25: Canadian Personal Banking
Canadian Personal Banking Q1/10 Gross Specific Canadian Personal Banking Loans GIL/Loans GIL PCL Highlights ($MM) ($B) ($MM) Residential Mortgages 58 0.45% 257 1 Quality of Real Estate Secured Home Equity Lines of Credit (HELOC) 57 0.15% 86 5 Lending (RESL) portfolio remains strong Unsecured Lines
Slide 26: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q1/10 Canadian Commercial and Gross Loans/BAs GIL Specific PCL Highlights Wholesale Banking ($B) ($MM) ($MM) Commercial Banking1 30 220 45 Portfolios continued to perform Wholesale 19 206 (1) well Total Canadian Commercial and Wholesale $49 $426 $44 Comm
Slide 27: U.S. Personal Banking
U.S. Personal Banking Q1/10 Highlights Gross Specific GIL U.S. Personal Banking Loans GIL/Loans PCL1 Default rates in Real Estate ($MM) ($B) ($MM) Secured Lending portfolios Residential Mortgages 8 1.95% 156 13 continued to trend up Home Equity Lines of Credit (HELOC)2 9 0.82% 74 15 Specific pro
Slide 28: U.S. Commercial Banking
U.S. Commercial Banking Commercial Real Estate (CRE) Q1/10 Gross GIL Specific Highlights U.S. Commercial Banking Loans/BAs ($MM) PCL1 ($B) ($MM) Defaults in the Residential for Commercial Real Estate (CRE) 13 560 35 Sale Real Estate portfolio have Non-residential Real Estate 9 155 9 not yet abated
Slide 29: U.S. Commercial Banking: Commercial & Industrial
U.S. Commercial Banking Commercial & & Industrial Industrial (C&I) (C&I) Q1/10 Gross Specific Highlights GIL U.S. Commercial Banking Loans/BAs ($MM) PCL1 ($B) ($MM) Consistent with expectation, Commercial Real Estate (CRE) 13 560 35 recessionary effects are expanding Non-residential Real Estate 9
Slide 30: Q1 2010 Investor Presentation
Q1 2010 Investor Presentation Thursday March 4, 2010