Toronto-Dominion Bank · TSX:TD
Toronto-Dominion Bank — The Toronto-Dominion Bank — Investor Day (June 2010)
94 slides from Toronto-Dominion Bank's investor day presentation, Jun 16, 2010
Slide 1: TD Bank Financial Group Investor Day
TD BANK FINANCIAL GROUP INVESTOR DAY Focus on TD Bank, America’s Most Convenient Bank June 16, 2010
Slide 2: Caution regarding forward-looking statements
Caution regarding forward-looking statements The information presented may contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and comparable “safe harbour” provisions of applicable Canadian legislation, including, but not limited to, stateme
Slide 3: Additional Information
Additional Information The proposed merger transaction involving The Toronto-Dominion Bank and The South Financial Group, Inc. will be submitted to The South Financial Group, Inc.’s shareholders for their consideration. The Toronto-Dominion Bank and The South Financial Group, Inc. have filed with th
Slide 4: Strategic overview
strategic overview BHARAT MASRANI Group Head U.S. Personal and Commercial Banking, TD Bank Financial Group and President & CEO, TD Bank, America’s Most Convenient Bank 4
Slide 5: Key Takeaways
Key Takeaways Unique Customer service and convenience proposition Strong Attractive footprint Franchise Disciplined risk management culture Normalized Environment Improving economic environment will create earnings tailwind Drive superior organic growth Organic Growth Grow Customer share
Slide 6: What's On Investors' Minds
What’s On Investors’ Minds Were you able to retain the “Commerce” magic? What areas of the business represent the greatest growth opportunities? What is the credit quality of your loan portfolio? Are you interested in additional acquisitions? How will you leverage your North American platf
Slide 7: U.S. Retail Bank Milestones
U.S. Retail Bank Milestones Completed Completed FDIC-assisted No Purchased Privatized Acquired TD acquisitions and Emerging Presence 51% Banknorth TD Banknorth Commerce Bank Banknorth/ Commerce announced acquisition of with Integration The South Financial Group1 Momentum 2004 2005 2007 2008 2009 YTD
Slide 8: Significant Scale and Attractive Footprint
Significant Scale and Attractive Footprint1 More than 1,200 stores in 15 states and the District of Columbia Located in top MSAs Presence in 10 of the 15 wealthiest states2 Strong positions in our markets ̶ Top 5 in deposits in 8 states33 ̶ Solid entry point for growth in North Carolina Top
Slide 9: Why TD Will Continue to Win in the U.S.
Why TD Will Continue to Win in the U.S. Legendary Customer Regional service and banking unparalleled model convenience Comprehensive Disciplined financial risk management product offering culture Strategic North relationship American with capabilities TD AMERITRADE Unique Unique and and proven prove
Slide 10: Superior Regional Banking Model
Superior Regional Banking Model Customer-Centric Model Starts with the Customer Provides access to the entire bank Local decision making Eliminates organizational Store silos Incentives aligned Delivers Delivers holistic holistic solutions solutions to to Customers Customers 10
Slide 11: Extending the Franchise Network: Maine to Florida Footprint
Extending the Franchise Network: Maine to Florida Footprint Critical Mass in Florida Attractive Florida market 4th th largest state in the U.S. by deposits1 1 Deposit-rich, fast-growing market Top 10 in stores and deposits22 With critical mass, our model drives outsized deposit share relativ
Slide 12: Looking Forward
Looking Forward + - Tailwinds Headwinds Strong Franchise Economic Uncertainty Strong TD brand attracts new Customers and Franchise business model has demonstrated employees ability to deliver, even in difficult environment Normalized Environment Increased Competition Normalizing provision for
Slide 13: Retail Earnings Growth Engine
Retail Earnings Growth Engine Adjusted Earnings1 Normalized Normalized (in US$MM) Return Return on on ROIC ROIC22 Risk-Based Risk-Based 8%+ 8%+ Capital Capital22 25+% 25+% US$1,600 Completed Completed $300 Normalized PCL Acquired Acquired TD TD Commerce Banknorth/ Banknorth/ Commerce Commerce Commer
Slide 14: Today's Presenters
Today’s Presenters Financial Overview Steve Boyle Credit Portfolio Quality Brian Smith Commercial Banking Walter Owens Retail Banking Fred Graziano, Nandita Bakhshi Emerging Opportunities: David Boone TD TD Insurance, Insurance, TD TD Wealth, Wealth, TD TD AMERITRADE AMERITRADE Seasoned Seasoned lea
Slide 15: Financial overview
financial overview STEVE BOYLE Chief Financial Officer, TD Bank, America’s Most Convenient Bank 15
Slide 16: Key Takeaways
Key Takeaways Deliver improving returns through organic growth and superior return on risk-based capital Strong franchise drove outperformance against U.S. peers during economic downturn 16
Slide 17: Earnings Roadmap
Earnings Roadmap Adjusted Net Income1 (US$MM) Normalized Normalized Return Return on on Risk-Based Risk-Based Capital Capital11 25+% 25+% $1,600 Normalized $300 PCL $1,200 $150 Acquisitions Normalized $300 $250 Organic Growth & PCL Franchise Optimization YTD 2010 YTD 2010 $900 $900 Annualized Annual
Slide 18: Normalizing Credit Losses
Normalizing Credit Losses PCL / Average Loans 1 Q2 2005 to Q2 2010, in % $54B in Loans11 Peers3 3.18% 0.89% 1.19% Estimated Normalized 0.50% 0.33% Loss Rate2 2003 2004 2005 2006 2007 2008 2009 2010 Earnings Earnings tailwind tailwind of of $300+MM $300+MM from from normalizing normalizing PCLs PCLs
Slide 19: Well Positioned to Deliver Profitable Growth
Well Positioned to Deliver Profitable Growth (US$B) Q2 2010 3 Year Target2 Balance Balance Loans Loans 54 81 $27B Investments 78 83 Deposits Regional Regional Bank Bank 83 112 Deposits deposits $29B11 TD AMERITRADE 41 49 Net Interest Margin 3.59% 3.50% to 3.70% Above market loan growth Improvi
Slide 20: Key Growth Drivers: Loans
Key Growth Drivers: Loans 1 (US$B) 11 2 2 2 2 27 4 4 4 4 4 4 4 4 4 4 4 2 Retail Commercial Retail Cross-Sell Commercial Commercial Acquisitions Total Growth Markets Middle Market Td - Specific Organic Growth & Market Growth Franchise Optimization TD’s TD’s unique unique model model drives drives out
Slide 21: Key Growth Drivers: Deposits
Key Growth Drivers: Deposits 1 (US$B) 9 4 4 3 3 3 29 7 6 6 6 6 6 Mature Store Maturing Store De Novo Store Retail Cross-Sell Acquisitions Total Growth Growth Growth Market - Specific Organic Growth & Franchise Growth Optimization TD’s TD’s unique unique model model drives drives outperformance outpe
Slide 22: Financial Highlights of FDIC-Assisted Acquisitions and South Financial Transaction
Financial Highlights of Recent FDIC-Assisted Acquisitions and Proposed South Financial Transaction Highlights Improved Scale Solid synergies – expect approximately Proposed Florida FDIC- 25% post conversion South Assisted Deals Financial1,2 Accretive in first full year despite significant invest
Slide 23: Superior Loan Growth During Tough Economic Environment
Superior Loan Growth During Tough Economic Environment Loan Growth % (YoY) 11% 8% 4% -4% Q407 Q108 Q208 Q308 Q408 Q109 Q209 Q309 Q409 Q110 1 Peers Growing Growing franchise franchise Customers Customers and and market market share share 1. Peers include 38 banks sourced from SNL. TD has a fiscal yea
Slide 24: Success in Growing High Value, Franchise Deposits
Success in Growing High Value, Franchise Deposits Regional Banking Total Deposit Growth2 Regional Banking Total Deposit Growth Q1 2009 to Q1 2010 (without Government Deposits)2 Q1 2009 to Q1 2010 7.1% 4.7% 0.1% -0.7% Peers1 Peers1 Outperformed Outperformed peers peers in in deposit deposit growth gr
Slide 25: Key Takeaways
Key Takeaways Deliver improving returns through organic growth and superior return on risk-based capital Strong franchise platform drove outperformance against U.S. peers during economic downturn 25
Slide 26: Credit portfolio quality
credit portfolio quality BRIAN SMITH Executive Vice President, Risk Management & Basel, TD Bank, America’s Most Convenient Bank 26
Slide 27: Key Takeaways
Key Takeaways Strong, disciplined credit culture Strong Strong Franchise Franchise Higher-quality and growing credit portfolio Well positioned for continued quality loan growth Normalized Normalized Environment Environment Improving credit environment will reduce PCLs 27
Slide 28: Strong, Disciplined Credit Culture
Strong, Disciplined Credit Culture Conservative lending culture at legacy Banknorth and Commerce Bank Key elements Focus on in-footprint lending Prudent underwriting standards and products Focus on proprietary distribution channels Strong Strong credit credit culture culture leads leads to to
Slide 29: Higher-Quality and Growing Credit Portfolio
Higher-Quality and Growing Credit Portfolio Portfolio Composition (%)1 Average Loans ($B) Credit Other Cards $54 Indirect 1% 1% Auto 6% $48 Non- residential Residential Real Estate Real Estate 16% 7% $34 HELOC 15% $32 Residential Mortgages 14% Commercial & Industrial 37% $20 $16 FDIC Covered Loans 3
Slide 30: Residential For-Sale Exposure Declining
Residential For-Sale Exposure Declining Portfolio Size Portfolio Quality Commercial Real Estate Loans (CRE) ($B) Non-Performing CRE Loans ($MM) $552 $12.6 $12.5 250 $337 10.6 11.3 164 302 173 2.0 1.2 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Q2/09 Q3/09 Q4/09 Q1/10 Q2/10 Residential for Sale All Other CRE Resid
Slide 31: Credit Portfolio Quality Stabilizing
Credit Portfolio Quality Stabilizing Non-Performing Loans to Net Charge-offs to Loans (%)1, 2 Total Loans & Leases (%)1 3.58% 3.50% 2.46% 2.30% 2.13% 1.31% 1.10% 0.79% Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 TD3 U.S. Peers4 TD3 U.S. Peers4 Non-performing loans cresting Charge
Slide 32: Key Takeaways
Key Takeaways Strong, disciplined credit culture Strong Strong Franchise Franchise Higher-quality and growing credit portfolio Well positioned for continued quality loan growth Normalized Normalized Environment Environment Improving credit environment will reduce PCLs 32
Slide 33: Commercial banking
commercial banking WALTER OWENS Head of U.S. Commercial Banking, TD Bank, America’s Most Convenient Bank 33
Slide 34: Key Takeaways
Key Takeaways Strong Strong Franchise Franchise Regional banking model drives outperformance Penetrate key growth and emerging markets Deliver proven product set to middle market Organic Organic Growth Growth and and Franchise Franchise Continue growth in mature markets and enhance Optimizat
Slide 35: Commercial Banking at a Glance
Commercial Banking At A Glance Overview Market Positioning Full service provider of commercial Leverage power of the TD brand banking products Balance smart growth with risk More than 20,000 Customers Drive relationship banking model for 500 lenders from Maine to Florida competitive adva
Slide 36: Relationship-Focused Model Drives Superior Results
Relationship-Focused Model Drives Superior Results Mature Markets Metro Philadelphia Northern New England Financial institutions with a statistically significant customer response Financial institutions with a statistically significant customer response rate to this survey: Bank of America, Fulton B
Slide 37: Significantly Outperformed Peers During Economic Downturn
Significantly Outperformed Peers During Economic Downturn Total Loans Outstanding CAGR1: 2008 to Q2 2010 2% Industry 2 -18% Grew Grew loans loans as as market market deleveraged deleveraged 1. 2. Compound annual growth rate Top 100 Domestic U.S. Banks (C&I Loans Outstanding) 37
Slide 38: Leading Loan Growth While Maintaining Strong Credit Quality and Margins
Leading Loan Growth While Maintaining Strong Credit Quality and Margins Non-Performing Loans to Total Loans1 3.58% 2.46% 2.13% 1.31% Continued focus on credit quality… Q1/09 Q2/09 Q3/09 Q4/09 Q1/10 2 3 TD Bank U.S. Peers Loan Margins4 LIB O R -Equiv a le nt S pre a d (bps) 27 bps …and outperformed m
Slide 39: Relationship Model Drives Deposit Leadership
Relationship Model Drives Deposit Leadership Commercial Bank Deposits CAGR: 2008 to Q2 2010 Grew number of franchise 12% Customers Penetrated higher quality markets: Education Healthcare Middle Markets Capture Capture and and grow grow the the entire entire Customer Customer relationship r
Slide 40: Success Story: Relationship banking model in action
Success Story: Our relationship banking model in action B&H Foto & Electronics Full service electronics retailer, serving over 1 Regional million customers President Store manager developed and grew relationship Commercial Cash Retail Banking Banking Management Assess client banking needs thro
Slide 41: Ability to Grow with a Lower Execution Risk, High Impact Strategy
Ability to Grow with a Lower Execution Risk, High Impact Strategy Loans ($B) Deposits ($B) 1 % R=8 CAG 40 1 = 8% CAGR 32 25 20 Q2 2010 3 Year Target 2 Q2 2010 3 Year Target 2 Organic Growth and Franchise Optimization Penetrate key growth and emerging markets Continue growth in mature markets and
Slide 42: Continue Momentum in Mature Markets and Enhance Productivity
Continue Momentum in Mature Markets and Enhance Productivity Regional Lender Activity Breakdown (%) Continue growth in mature markets Maintain and grow existing book by 4% annually to $36B + Increase lender capacity Improve front-end and back-office systems Non-Customer facing Streamline loan
Slide 43: Penetrate Key Growth and Emerging Markets
Penetrate Key Growth and Emerging Markets Growth Markets: NY and NJ1 Emerging Markets: Boston, DC, Florida1 Money Center Regional Community Financial institutions with a statistically significant customer response rate to this survey: Bank of Financial institutions with a statistically significant c
Slide 44: Penetrate Middle Market with Proven Product Set
Penetrate Middle Market with Proven Product Set1 U.S. Middle Market: Large & Recovering 2000 200 Focus on lead relationships Syn. Loans Issued ($B) Middle Market ($B) . 1500 150 Leverage regional network 1000 100 Expand middle market 500 50 lender team by 10%-20% to ~75 lenders 0 0 2003 2004 2
Slide 45: Increase Commercial Share of Wallet
Increase Commercial Share of Wallet Number of Products Cross-Sold per Lender Start with strong foundation 80% of current lending relationships have deposits 4 to 6 Expand cross-sell beyond historical focus on deposits Capitalize on enhanced cash management capabilities 2 Increase cross-sell pe
Slide 46: Key Takeaways
Key Takeaways Strong Strong Franchise Franchise Regional banking model drives outperformance Penetrate key growth and emerging markets Deliver proven product set to middle market Organic Organic Growth Growth and and Franchise Franchise Continue growth in mature markets and enhance Optimizat
Slide 47: Questions & Answers
Questions & Answers 47
Slide 48: Break
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Slide 49: Retail banking
retail banking FRED GRAZIANO Head of Retail Banking, TD Bank, America’s Most Convenient Bank 49
Slide 50: Key Takeaways
Key Takeaways Strong Strong Franchise Franchise Unique Customer service and convenience model Significant embedded growth in mature and maturing stores Continue to grow successful de novo program Organic Organic Growth Growth and and Further build out the store network with improved Franchis
Slide 51: Retail Bank at a Glance
Retail Bank At A Glance Overview2 Market Positioning Retail Retail Banking Banking Small Small Business Business Banking Banking Leader Leader in in Customer Customer service service and and convenience convenience More More than than 6.5 6.5 million million Customers Customers 400,000 4
Slide 52: the Customer
the Customer Fuses the internal culture to external brand Creates focus…provides sense of purpose Engages staff in business Recognizes and celebrates Customer service Frames leadership mindset – all about Sparks Fun! Unique Unique positioning positioning that that is is difficult difficu
Slide 53: Building the Brand
Building the Brand A Clear, Differentiated Brand… Mass Media Guerrilla Unique 60,000 free EcoCabs cups of coffee 7 events (CT, 40,000 free ME, VT, MA) reusable bags 6,800+ 30,000 free convenient lifts pizzas …that is Desired by our Customers Brand Consideration1 50% 45% Leading 40% #1 in
Slide 54: Proven Ability to Deliver Strong Customer Experience Post Integration
Proven Ability to Deliver Strong Customer Experience Post Integration TD Bank, America’s Most Convenient Bank Customer WOW! Index (CWI) System conversion impact and recovery Jan '09 Apr '09 Jul '09 Oct '09 Jan '10 Apr '10 Unique Customer proposition enabled swift rebound TD Canada Trust Customer Exp
Slide 55: The TD Bank Model Works
The TD Bank Model Works Rebranding and renovating 85 TD Introducing 7-Day Banking and Banknorth stores in the Mid-Atlantic Penny Arcade to New England to the TD Bank Model Customer WOW! Index 18% YoY 23% lift in new accounts in 7 day banking stores11 19% YoY 7% lift in new account 37% lift in in
Slide 56: FDIC-Assisted Florida Acquisitions
FDIC-Assisted Florida Acquisitions Strong Customer retention Employees positively engaged Excellent fit with TD’s culture Loan portfolio performing within expectations Early Early signs signs are are positive positive 56
Slide 57: Leading Deposit Franchise
Leading Deposit Franchise Outperform market in same store …at lower deposit costs deposit growth… 1+ Year Stores 7.4% 4.9% Q1-08 Q1-09 Q1-10 2 U.S. P&C Mid-Cap Median 2 30 Day LIBOR Market Average 1 Maintained lower deposit costs in a low rate environment Outperforming Outperforming peers peers in i
Slide 58: Strong Retail Business Model to Drive Growth
Strong Retail Business Model to Drive Growth Loans ($B) Deposits ($B) 1 1 R: 1 0% 31 R: 7 % 78 CAG CAG 63 23 1 1 Q2 2010 3 Year Target Q2 2010 3 Year Target Organic Growth and Franchise Optimization Significant embedded deposit growth in Further build out the store network with mature and maturi
Slide 59: Continuing to Build Out the Store Network
Continuing to Build Out the Store Network Ability to capture deposit Deposit Market 1 share greater than store Market Strategy share, at a faster rate2 Share3 Mature 9.6% Renovate, introduce TD 2nd Markets Bank convenience model 11.6% Primary focus of de novo 5.2% Growth Accelerate network eff
Slide 60: Significant Growth Opportunity in Mature and Maturing Stores
Significant Growth Opportunity in Mature and Maturing Stores Average Deposit Number of Stores Growth per Store1 (US$MM) as at April 30, 20104 Opportunities Market Growth from Mature Stores Growth at 2.5% to 3% Mature Mature Stores - 88 833 annually Stores All 2 $6B in deposit volume55 Embedded Gro
Slide 61: Continue Successful De Novo Program
Continue Successful De Novo Program Average Deposit per Store ($MM) Open 50 to 60 new stores per year about 200 new stores in approximately 3 89 years2 79 Average expected growth per store $15-20 MM per year3 1 Market Average Size Growth Opportunity Projected at 5 Years1 $3B in deposit volume4
Slide 62: New York City: De Novo Success Story
New York City De Novo Success Story New York is the largest MSA in the U.S. About $0.5 trillion in deposits One of the most competitive banking markets in the world Superior de novo growth capabilities Grew from 2 stores in 200111 to 79 stores in April 2010 TD Bank Customers in nearly 500,00
Slide 63: Efficiency: De Novo Execution Getting Even Better
Efficiency De Novo Execution Getting Even Better New Build Previous Renovate Existing Structure Heavy reliance on customization Non-LEED building Out-of-the-box thinking on customization/non-customization Strong brand quality LEED gold to platinum More More efficient efficient design desig
Slide 64: Significant Wallet Share Penetration Opportunity
Significant Wallet Share Penetration Opportunity Share of Customers' Deposits1 Create a sales culture Provide sales skill training and certification Historical Focus Opportunity Implement proven TD sales processes and performance metrics on a bank- wide basis 51% 51% Update hiring practices
Slide 65: Grow Small Business Banking Market and Wallet Share
Grow Small Business Banking Market and Wallet Share Grow market share Deepen relationships Grow underpenetrated markets to Incremental 35K businesses 6% ($2.6B Balance)1 Potential for additional 100k Potential for additional 35K loans businesses ($2B in Deposits)1 Penetration of Businesses W
Slide 66: A Leader in Small Business Customer Satisfaction
A Leader in Small Business Customer Satisfaction JD Power Small Business Award 2007, 2008, 2009 Overall Satisfaction Likelihood to Recommend 740 35% 696 27% TD TD vs. vs. Industry Industry 2008: 2008: >12 >12 pts pts 2009: 2009: >44pts >44pts #1 #1 1 1 TD Industry Average TD Industry Average Widenin
Slide 67: Improving our Direct Channels
Improving our Direct Channels Phone ATM Personalized Cross-sell across messages and enterprise interaction Online Coming Soon - Mobile Banking Future: targeted New online marketing and functionalities to drive communication with new accounts and Customers TD Bank Customer self-service offers
Slide 68: Retail banking
retail banking NANDITA BAKHSHI Head of Product Management Group, TD Bank, America’s Most Convenient Bank 68
Slide 69: Significant Wallet Share Penetration Opportunity
Significant Wallet Share Penetration Opportunity Share of Customers' Deposits1 Historical Focus Opportunity 51% 51% 42% 41% 37% 29% 27% 22% 20% 9% Checking Savings/Money CD (inc IRA) Total Deposits Total Loans Market 2 TD Bank Top 10 Peers Opportunity Opportunity to to grow grow market market share
Slide 70: Product Penetration Strategy: Elite Savings
Product Penetration Strategy Elite Savings Opportunity Savings is a natural cross-sell for checking accounts Savings attract higher balance customers while tiered product delivers desired margins Strategy Delivers growth with Generated Generated over over minimal cannibalization 30k 30k new new
Slide 71: Product Penetration Strategy: Interest Checking
Product Penetration Strategy Interest Checking Opportunity Interest checking customers more profitable due to higher balances and higher activity levels Franchise checking accounts drive stronger retention High cross-sell rates, particularly for loans and CDs Strategy A growing portion of our
Slide 72: Product Penetration Strategy: Mortgage
Product Penetration Strategy Mortgage Opportunity Key franchise product: Move penetration from 1.5% to 2.2% to be in line with peers Average of 6 TD products per household with mortgage vs. 2 for clients without a mortgage Strategy Mortgage Portfolio (in $B) Primary focus on store and web chan
Slide 73: Product Penetration Strategy: Home Equity
Product Penetration Strategy Home Equity Opportunity Strong penetration with opportunity to further grow market share Key franchise product: average of 6 TD Bank products per household for clients that have home equity products Strategy Home Equity Portfolio (in $B) Primary focus on store and
Slide 74: Product Penetration Strategy: Credit Card
Product Penetration Strategy Credit Card Opportunity Current penetration 6% vs. industry average in mid 20% range Strategy Total Accounts (in 000s) / 192 Penetration Rate (%) 34% bps Primary focus on store and web channels Increase sales support with improved product training and marketing
Slide 75: Managing Through Complex Regulatory Environment
Managing Through Complex Regulatory Environment Potential Regulatory Changes: Potential Impacts Mitigating Factors Consumer Consumer Banking Banking Products Products Amendment to Overall impact and timing High-touch Customer Regulation E remains uncertain approach to increase Customer awarene
Slide 76: Key Takeaways
Key Takeaways Strong Strong Franchise Franchise Unique Customer service and convenience model Significant embedded growth in mature and maturing stores Continue to grow successful de novo program Organic Organic Growth Growth and and Further build out the store network with improved Franchis
Slide 77: Emerging opportunities: TD Insurance, TD Wealth, TD AMERITRADE
emerging opportunities: TD Insurance, TD Wealth, TD AMERITRADE DAVID BOONE Executive Vice President Mass Affluent Segment & TD Bank U.S.A., TD Bank, America’s Most Convenient Bank 77
Slide 78: Key Takeaways
Key Takeaways Cross-sell insurance and investment services to Customer base at TD Bank, America’s Most Convenient Bank Organic Organic Growth Growth and and Franchise Cross-sell banking products to large, Franchise Optimization Optimization underpenetrated Customer base at TD AMERITRADE Substa
Slide 79: TD Insurance Overview and Growth Opportunities
Overview Full-service insurance agency and broker 1 of 10 largest bank-owned agencies, and 1 of 50 Growth Opportunities largest agencies in the U.S.11 443,000 Customers Penetrate TD’s personal and commercial bank 377 employees Customer base 19 offices in 6 Northeast states Expand into
Slide 80: U.S. Wealth Business Model
U.S. Wealth Business Model TD Bank America’s Most Convenient Bank Business TD Wealth Management TD AMERITRADE Mass Affluent Customer High Net Worth Focus Customers interested in brokerage >$750K Investible Assets services & investment advice Private Private Key Private Private Investment Trust Trust
Slide 81: TD Wealth Overview and Growth Opportunities
Overview11 Offers private client services to high net worth Customers Growth Opportunities 24 offices Focus on delivering legendary More than $12B in assets Customer experience Growing client-facing advisors NYC, Boston, Philadelphia, Referrals Washington DC, Miami Increase wealth pene
Slide 82: Relationship with TD AMERITRADE
Relationship with Significant relationship opportunity Combined Customer base of approximately 10 million Customers ̶ Banking access to 5.4 million TD AMERITRADE Customers across the U.S. ̶ Brokerage access to more than 6.5 million Customers on the Eastern Seaboard Two strong “TD” value propos
Slide 83: Grow Referrals of Mass Affluent Customers to TD AMERITRADE
Grow Referrals of Mass Affluent Customers to TD AMERITRADE Strategy Position TD AMERITRADE as the investment option for TD Bank’s Mass Affluent clients Key Elements Wind down TD Bank’s existing financial advisory business Add TD AMERITRADE Investment Consultants in TD Bank stores Expand in-s
Slide 84: Success Story: Deposit and cash management services to TD AMERITRADE
Success Story: Provide deposit and cash management services to TD AMERITRADE Deposit Balance (in $B) 41 Transitioned Money Market Funds to bank deposits at TD 31 Launched Multi-Bank sweep program 18 Launched Savings 15 Account & Promotional CD’s Provide debit, ACH & check processing for TD A
Slide 85: Attracting TD AMERITRADE Customers to TD Bank
Attracting TD AMERITRADE Customers to TD Bank Average total balances Opportunity per household1 25% of TD AMERITRADE clients located within 91% 15 mile radius of a TD Bank store 14% of TD AMERITRADE clients within TD Bank footprint have a TD Bank account Strategy TD Bank only retail Overlap reta
Slide 86: Key Takeaways
Key Takeaways Cross-sell insurance and investment services to Customer base at TD Bank, America’s Most Convenient Bank Organic Organic Growth Growth and and Franchise Cross-sell banking products to large, Franchise Optimization Optimization underpenetrated Customer base at TD AMERITRADE Substa
Slide 87: Questions & Answers
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Slide 88: Closing remarks
closing remarks BHARAT MASRANI Group Head U.S. Personal and Commercial Banking, TD Bank Financial Group and President & CEO, TD Bank, America’s Most Convenient Bank 88
Slide 89: What's On Investors' Minds
What’s On Investors’ Minds Were you able to retain the Leadership in service and “Commerce” magic? convenience, plus capabilities from being part of a North American bank What areas of the business represent the Continue organic growth, de novo greatest growth opportunities? expansion, and grow
Slide 90: Key Takeaways
Key Takeaways Unique Customer service and convenience proposition Strong Attractive footprint Franchise Disciplined risk management culture Normalized Environment Improving economic environment will create earnings tailwind Drive superior organic growth Organic Growth Grow Customer share
Slide 91: Investor Relations Contacts
Investor Relations Contacts Phone: 416-308-9030 or 1-866-486-4826 Email: [email protected] Website: Best Investor Relations by Sector: Financial Services www.td.com/investor Best Retail Investor Communications 91
Slide 92: Appendix
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Slide 93: Material Factors and Assumptions For TD's Targets and Opportunities
Material Factors and Assumptions For TD’s Targets and Opportunities The The material material factors factors && assumptions assumptions underlying underlying TD’s TD’s targets targets and and opportunities opportunities in in this this presentation presentation include: include: •• aa continuation
Slide 94: TD Bank Financial Group Investor Day
TD BANK FINANCIAL GROUP INVESTOR DAY Focus on TD Bank, America’s Most Convenient Bank June 16, 2010