Toronto-Dominion Bank · TSX:TD
Toronto-Dominion Bank — Q1 2001 Earnings Presentation
24 slides from Toronto-Dominion Bank's earnings presentation, 2001
Slide 1: Bank Financial Group First Quarter 2001
Bank Financial Group FIRST QUARTER 2001 Bank Financial Group Dan Marinangeli EVP & CFO 1
Slide 2: Highlights and Special Items
Highlights* First Quarter 2001 • Record EPS of $0.88, up 22% • Revenue of $2.8 billion, up 32% • ROE 19.5% versus 16.4% last year • Record TDCT net income of $267 million • PCL $270MM (including $150MM increase in general reserves) versus $75MM last year • Tier 1 ratio up to 7.5% * Results are on a
Slide 3: Accounting items
Accounting items Income tax accounting standard - reduction of federal tax rates Example - A future tax asset is created because TD generally pays tax on security gains before they are recognized in the accounts and deducts general provisions for accounting before they can be deducted for tax. • Fut
Slide 4: Accounting items and Summary of items
Accounting items Employee future benefits accounting standard • Other retirement benefits were pay-as-you-go • New standard is to recognize the cost of all post- employment benefits over the period in which the employee renders services. Impact on TD • $132MM charge to retained earnings to recognize
Slide 5: Key Goals - How Did We Do? Revenue Growth
Key Goals - How Did We Do? Q1/01 Goals Cash basis ROE 19.5% 17 - 20% PCL/Loans & BAs 36 bps 35 bps (excluding special charges & reverse repos) Efficiency 58% 58%* (excluding non-cash charges & one-time items) * Cash operating basis for TDCT after completion of integration. Slide 9: TDBFG Revenue Gro
Slide 6: EPS Growth
EPS Growth Base = Q1/00 150 125 100 * 4 Bank Cdn. Peer ** U.S. Peers 75 50 Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 * Based on Q1/01 consensus analyst estimates (accrual estimates have been adjusted for estimated goodwill amortization). Adjusted for special items. ** Universe includes largest 15 comparable ban
Slide 7: Canada Trust Momentum: Revenue
Momentum Revenue $ Millions Top-line growth continues: • Revenue growth is $37 million or 3% $1,305 $1,335 $1,372 higher than Q4/00 $1,250 • Growth of 13% over the same quarter last year on a comparable $813 basis 00 00 00 00 01 1/ 2/ 3/ 4/ 1/ Q Q Q Q Q Slide 13: TDCT Momentum P&C Revenue Growth 130
Slide 8: Momentum: Cash Net Income
Momentum Cash Net Income $ Millions Strong earnings growth: $267 $248 • Cash net income of $267 million for $230 $202 the quarter • Up $19 million or 8% versus Q4/00 $145 and $122 million higher than Q1/00 Impressive operating1 ROE: • Q1/01 ROE = 28% versus 27% for Q4/00 and 22% for Q1/00 00 00 00 0
Slide 9: Momentum: Operating Efficiency
Momentum Operating1 efficiency Improvement in the operating 62.5% 61.6% efficiency ratio: 60.3% 59.4% • To 58.4% this quarter from 61.6% 58.4% in Q1/00. Achieved expense savings (on a comparable basis)2 • 1% expense increase versus 13% revenue growth 00 00 00 00 01 1/ 2/ 3/ 4/ 1/ Q Q Q Q Q 1. Exclud
Slide 10: Margin and Personal Loans & Mortgages
Margin Net Interest Margin* 3.60% 3.24% 3.28% 3.34% 3.22% Q1 00 Q2 00 Q3 00 Q4 00 Q1 01 * Margin now includes securitized assets. Prior periods have been restated. Slide 19: TDCT Personal Loans (including Cards) & Mortgages 7.9% Yr 7.9% Yrover overYr Yrgrowth growth $ Billions 1.6% Qtr 1.6% Qtrover
Slide 11: Personal Deposits
Personal Deposits 5.0% Yr 5.0% Yrover overYr Yrgrowth growth $ Billions 1.2% Qtr 1.2% Qtrover overQtr Qtrgrowth growth $84 23% $80 $76 22% $72 $68 21% $64 $60 20% Q1/99 Q3/99 Q1/00 Q3/00 Q1/01 Volume Cdn. Bank Mkt. Share to Dec/00 Note: Data restates TD and CT as a combined entity. (Canadian Currenc
Slide 12: TD Waterhouse
TD Waterhouse Revenue Cash Net $ Millions Income $ Millions $688 $105 $548* $500 $519 $497 $86* $53 $58 $47 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 * Excludes special gains. Slide 23: TD Waterhouse TD Waterhouse Group, Inc. 2000 2001 Yr/Yr Jan 31 Oct 31 Jan 31 Change ($US) Active
Slide 13: TD Wealth Management
SEGMENT PERFORMANCE Wealth TD Wealth Management Management Revenue Cash Net $ Millions Income $ Millions $189 $189 $196 $38 $174 $33 $29 $125 $25 $15 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Slide 26: TDWM 13
Slide 14: Assets Under Management and Mutual Funds
TD Wealth Management Wealth Management Assets Under Management $ Billions 120 $112 $113 $107 $102 100 $74 80 $39 $42 $32 $36 60 $28 40 $21 $21 $22 $23 $19 20 $30 $30 $29 $29 $17 0 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Other Assets Quantitative Capital: Institutional TD WAM Retail Funds TDAM Retail Canadian
Slide 15: TD Securities: Revenue
SEGMENT PERFORMANCE Securities TD Securities: Revenue $ Millions $788 $794 $632 $650 $653 Q1/00 Q2/00 Q3/00 Q4/00 Q1/01 Slide 30: TDSI 15
Slide 16: TD Securities: Revenue Growth and Cash Net Income
Securities TD Securities: Revenue Growth Q1/00 to Q1/01 114% 96% 72% 50% 23% 10% -77% t r g g ge ng i he t ed in in es n ki k k ot cr ha cr an an an d ew & c B B tB an ex e N nt te at en ty gn a TD ra tr ui ch m po i es re Eq st er or Fo r ve M te C In In Trading Slide 31: TDSI Securities TD Securit
Slide 17: Risk Management: Strong Asset Quality
FIRST QUARTER 2001 RISK MANAGEMENT Bank Financial Group Tom Spencer EVP, Risk Management Strong Asset Quality Ratio of PCL to Loans & BAs % 1.00 0.80 TD 4 Bank Peer 0.60 0.40 0.20 36 bps 0.00 1994 1995 1996 1997 1998 1999 2000 Q1 01 Notes: Excludes special general provisions and reverse repos. Slide
Slide 18: General Reserves & Net Impaired Loans; New Formations
General Reserves & Net Impaired Loans General Reserves General Reserves $ Millions as a % of RWA 0.79 $1,014 0.69 0.66 $862 0.61 $753 $636 0.39 $402 0.18 $159 1996 1997 1998 1999 2000 Q1 01 1996 1997 1998 1999 2000 Q1 01 Net Impaired Loans $(286)million Q4/00 4 Bank Peer Average: 0.83% Slide 35: TDB
Slide 19: Telecom & Cable Loans; Market Risk
Telecom & Cable Loans & BAs* Inv. Non-Inv. $C million Total Grade Grade Regulated Telephone 916 - 916 Unregulated CLEC - 392 392 Wireless 740 781 1,521 Other 283 452 735 Total Unregulated 1,023 1,625 2,648 Telecom Equipment 42 45 87 Non-North American Cable 37 556 593 Cable/Telephony (excl. N.A. Cab
Slide 20: Canada Trust Integration Update
FIRST QUARTER 2001 Canada Trust Integration Update Chris Stringer Executive Director Implementation Management Office TD Canada Trust Our goal Integrate successfully » Achieve merger business plan » Integrate systems, products and branches » Build a better bank under the TD Canada Trust brand And we
Slide 21: Integrate Successfully: Timeline and Accomplishments
Integrate Successfully Integration timeline CUSTOMER s s ion ion i ng ns vers vers ns re le e pp io on on io us e titu Sa erg Ma vers fic C ue C vers ho es ard nd M uct on c i Q on a ter D iv C Fu Prod tic C /P a sk / C W ch ter n rta n/Sa tario TD an Mas DAM ore Atla Albe On Br T C Ma Post-Conversi
Slide 22: Integrate Successfully: Year One and What's Next
Integrate Successfully Year one • Expense synergies on track • FTE reductions on track • Restructuring projected to be on budget While • Market share has increased • Customer service index has improved • Employee surveys show positive feedback Slide 43: TDCT Integrate Successfully What’s next • Move
Slide 23: Branch Actions and Building a Better Bank
Integrate Successfully What’s next Anticipated branch actions Calendar 2000 2001 2002 2003 Total Merged 13* 122 127 13 275 » 87% of the branches affected in 2001 are less than 1 Km apart » 15 branches and 40 in-store openings planned for 2001 * sold as per Competition Bureau requirements Slide 45: T
Slide 24: Forward Looking Statements
Forward Looking Statements TD BANK FINANCIAL GROUP This document may contain forward-looking statements, including statements regarding the business and anticipated financial performance of TD. These statements are subject to a number of risks and uncertainties that may cause actual results to diffe
Toronto-Dominion Bank — Q1 2001 Earnings Presentation on 6ix