Toronto-Dominion Bank · TSX:TD
Toronto-Dominion Bank — TD Bank Group — Q2 2016 Earnings Presentation
28 slides from Toronto-Dominion Bank's earnings presentation, May 26, 2016
Slide 1: TD Bank Group Q2 2016 Quarterly Results Presentation
TD Bank Group Q2 2016 Quarterly Results Presentation Thursday May 26th, 2016
Slide 2: Caution Regarding Forward-Looking Statements
Caution Regarding Forward-Looking Statements From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the United States (U.S.) Securities and Exchange Commission (SEC), and
Slide 3: Overview
Overview Adjusted1 earnings of $2.3B, up 5% YoY Adjusted retail2 net income up 6% YoY Good performance in Wholesale Earned through higher credit provisions Credit quality remains strong overall Adjusted EPS of $1.20, up 5% YoY Common Equity Tier 1 ratio of 10.1% 1. The Bank prepares its cons
Slide 4: Accomplishments
Accomplishments Leader in Customer Satisfaction #1 Pension Fund Manager for the 5th consecutive year1 "Highest in Customer Satisfaction with Retail Banking in Florida" by J.D. Power2 Expanding our Digital Capabilities MySpend Customer service via Facebook Messenger Apple PayTM and UGO3 1.
Slide 5: Q2 2016 Highlights
Q2 2016 Highlights Financial Highlights $MM Total Bank (Adjusted1 YoY) Adjusted1 Q2/16 Q1/16 Q2/15 Revenue 8,317 8,564 7,742 EPS of $1.20 up 5% PCL 584 642 375 Net Income up 5% Expenses 4,556 4,579 4,243 Net Income 2,282 2,247 2,169 Revenue up 7% Diluted EPS ($) 1.20 1.18 1.14 Up 4% ex FX and acqu
Slide 6: Canadian Retail
Canadian Retail Highlights (YoY) P&L $MM Q2/16 QoQ YoY Net income up 2% Revenue 4,887 -3% 2% Insurance Claims 530 -19% -6% Revenue up 2% Revenue Net of Claims1 4,357 0% 3% Loan volumes up 6% PCL 262 15% 10% Deposit volumes up 6% Expenses 2,095 1% 1% Wealth assets2 up 3% Net Income 1,464 -3% 2%
Slide 7: U.S. Retail
U.S. Retail Highlights US$MM (YoY) P&L US$MM (except where noted) Q2/16 QoQ YoY Q2/16 QoQ YoY Adjusted net income up 6% Adjusted1 Reported Revenue up 6% Revenue 1,725 -1% 6% 1,725 -1% 6% PCL 123 -23% 52% 123 -23% 52% Loan volumes up 13% Expenses 1,067 4% 4% 1,067 4% 0% Deposit volumes up 10% U.S
Slide 8: Wholesale Banking
Wholesale Banking Highlights (YoY) P&L $MM Net income down 11% Q2/16 QoQ YoY Revenue 766 15% -2% Revenue down 2% PCL 50 >100% >100% Lower fixed income trading and equity Expenses 441 3% -1% underwriting fees Net Income 219 36% -11% Partially offset by higher advisory and corporate ROE 14.8% lend
Slide 9: Corporate Segment
Corporate Segment Highlights (YoY) P&L $MM Q2/16 Q1/16 Q2/15 Adjusted loss decreased $19MM Net Corporate Expenses (196) (203) (177) Ongoing investment in enterprise and Other 48 (4) 10 regulatory projects Non-Controlling Interests 28 29 28 Higher positive tax items and higher treasury revenue Ne
Slide 10: Capital & Liquidity
Capital & Liquidity Highlights Common Equity Tier 11 Common Equity Tier 1 ratio of 10.1% Q1 2016 CET1 Ratio 9.9% Leverage ratio of 3.8% Internal capital generation 25 bps Unrealized gains on AFS securities within AOCI 6 bps Liquidity coverage ratio of 128% Increase in common shares 3 bps RWA increas
Slide 11: Gross Impaired Loan Formations
Gross Impaired Loan Formations By Portfolio GIL Formations1: $MM and Ratios2 Highlights $1,717 Canadian Retail Formations constant at 19bps over the past $1,453 five quarters $1,338 $1,206 $142 / 38 bps U.S. GIL Formations quarterly $1,124 $33 / 10bps decrease of $384MM driven by: $14 / 5bps $1,
Slide 12: Gross Impaired Loans (GIL)
Gross Impaired Loans (GIL) By Portfolio GIL1: $MM and Ratios2 Highlights $3,799 $3,567 Canadian Retail GIL stable for $39 / 10 bps $3,244 the past five quarters $3,077 $178 / 48 bps $2,905 $55 / 16 bps U.S. GIL quarterly decrease of $36 / 12 bps $28 / 9 bps $353MM driven by: $297MM due to stre
Slide 13: Provision for Credit Losses (PCL)
Provision for Credit Losses (PCL) By Portfolio Highlights PCL1: $MM and Ratios2 $648 Canadian and U.S. Retail credit $10 / 11 bps $592 quality remains strong with loss $550 $65 / NM rates of 30 bps and 51 bps $48 / 53 bps $11 / 14 bps respectively $443 $36 / NM $60 / NM U.S. Retail6 $123MM quart
Slide 14: Oil and Gas Exposure
Oil and Gas Exposure Corporate and Commercial Outstandings Highlights by Sector ($B): Oil and Gas Producers and Services $3.8 outstandings remain less than 1% of total gross loans and acceptances: Four new formations in Wholesale in Oil & $1.4 / 37% Gas $45MM increase in specific allowances
Slide 15: Appendix
Appendix
Slide 16: Q2 2016 Earnings: Items of Note
Q2 2016 Earnings: Items of Note MM EPS Reported net income and EPS (diluted) $2,052 $1.07 Revenue/ Pre Tax After Tax Items of note EPS Segment Expense (MM) (MM) Line Item4 Amortization of intangibles1 $69 $63 $0.04 Corporate page 9, line 10 Fair value of derivatives hedging the reclassified $58 $51
Slide 17: Canadian Retail
Canadian Retail Net Interest Margin Average Deposits $B 264 268 272 274 259 19 19 19 20 19 2.89% 2.88% 84 84 85 85 81 2.84% 2.80% 2.77% 159 161 165 167 169 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Personal Business Wealth Efficiency Ratio Average Loans $B 347 354 359 361 341 56 57
Slide 18: Canadian Wealth
Canadian Wealth Wealth Revenue $MM Wealth Assets $B 875 864 879 883 856 321 117 113 118 116 312 314 310 308 112 116 115 112 133 254 131 244 249 245 247 613 642 636 649 634 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Fee & Other Transaction NII AUA AUM 18
Slide 19: US Retail
US Retail Net Interest Margin Average Deposits US$B 214 218 224 204 206 3.14% 79 81 84 3.11% 3.11% 75 76 3.08% 3.05% 57 58 61 62 62 72 73 73 75 78 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Q2/15 Q3/15 Q4/15 Q1/16 Q2/16 Personal Business TD Ameritrade IDAs 2 Adjusted1 Efficiency Ratio Average Loans US$B 134 134
Slide 20: U.S. Wealth
U.S. Wealth Wealth Assets US$B TD Ameritrade1 77 TD’s share of TD Ameritrade’s net 73 74 72 71 income was C$108 MM in Q2/16, up 26% YoY mainly due to: FX translation, asset growth and higher trading volumes TD Ameritrade results: Net income US$205 MM in Q2/16, up 8% YoY Average trades per day
Slide 21: Canadian Housing Market
Canadian Housing Market Portfolio Q2/16 Gross Loans Outstanding $248 B Canadian RESL Percentage Insured 53% Uninsured Residential Mortgages Current LTV1 58% Condo Mortgage Gross Loans Outstanding $32 B Percentage Insured 63% Gross Loans Outstanding $6 B Condo HELOC Percentage Insured 30% Condo Borro
Slide 22: Gross Lending Portfolio
Gross Lending Portfolio Includes B/As Balances (C$B unless otherwise noted) Q1/16 Q2/16 Canadian Retail Portfolio $ 359.2 $ 361.9 Personal $ 299.8 $ 300.9 Residential Mortgages 185.9 185.7 Home Equity Lines of Credit (HELOC) 61.2 62.0 Indirect Auto 19.2 19.7 Unsecured Lines of Credit 9.6 9.6 Credit
Slide 23: Canadian Personal Banking
Canadian Personal Banking Q2/16 Gross Loans GIL GIL / Highlights Canadian Personal Banking1 ($B) ($MM) Loans Credit quality remains Residential Mortgages 186 428 0.23% strong in the Canadian Home Equity Lines of Credit (HELOC) 62 164 0.26% Indirect Auto 19 61 0.31% Personal portfolio Unsecured Lin
Slide 24: Canadian Commercial and Wholesale Banking
Canadian Commercial and Wholesale Banking Q2/16 Canadian Commercial and Gross Highlights GIL GIL/ Loans/BAs Wholesale Banking ($B) ($MM) Loans Canadian Commercial Commercial Banking1 61 169 0.28% portfolio continues to Wholesale 37 178 0.48% perform well Total Canadian Commercial and Wholesale $98
Slide 25: U.S. Personal Banking – U.S. Dollars
U.S. Personal Banking – U.S. Dollars Q2/16 U.S. Personal Banking1 Gross Loans GIL GIL / Highlights ($B) ($MM) Loans Residential Mortgages 20 328 1.62% Good asset quality in U.S. Home Equity Lines of Credit (HELOC)2 10 822 8.19% Personal Indirect Auto 20 135 0.67% U.S. GIL decrease primarily Cred
Slide 26: U.S. Commercial Banking – U.S. Dollars
U.S. Commercial Banking – U.S. Dollars Q2/16 U.S. Commercial Banking1 Gross Loans GIL GIL/ Highlights / BAs ($B) ($MM) Loans Commercial Real Estate (CRE) 20 151 0.76% Continuing portfolio growth Non-residential Real Estate 15 98 0.65% and good quality in U.S. Residential Real Estate 5 53 1.06% Com
Slide 27: 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 Corporate Governance
Slide 28: TD Bank Group Q2 2016 Quarterly Results Presentation
TD Bank Group Q2 2016 Quarterly Results Presentation Thursday May 26th, 2016