TD Bank Group Newsroom
TD Bank Financial Group Reports Strong Fourth Quarter, Excellent Fiscal 2007
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TD Bank Financial Group's audited Consolidated Financial Statements
(including Notes to the Consolidated Financial Statements) for the year
ended October 31, 2007 and accompanying Management's Discussion and
Analysis is available at www.td.com.
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FULL YEAR FINANCIAL HIGHLIGHTS
- Reported diluted earnings per share(1) for fiscal 2007 were $5.48
compared with $6.34 for fiscal 2006.
- Adjusted diluted earnings per share(2) for fiscal 2007 were $5.75
compared with $4.66 for fiscal 2006.
- Reported net income was $3,997 million for fiscal 2007, compared with
$4,603 million for fiscal 2006.
- Adjusted net income was $4,189 million for fiscal 2007, compared with
$3,376 million for fiscal 2006.
FOURTH QUARTER FINANCIAL HIGHLIGHTS compared with the fourth quarter a
year ago:
- Reported diluted earnings per share(1) were $1.50, up 44% from $1.04.
- Adjusted diluted earnings per share(2) were $1.40, up 17% from $1.20.
- Reported net income was $1,094 million, compared with $762 million.
- Adjusted net income was $1,021 million, compared with $875 million.
FOURTH QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The fourth quarter reported diluted earnings per share figures above
include the following items of note:
- A gain of $135 million after tax (19 cents per share) related to the
estimated value of the shares the Bank received in Visa Inc. in
exchange for its membership interest in Visa Canada Association as
part of the Visa global restructuring.
- A general loan loss provision release of $39 million after tax
(5 cents per share) based on revised loss rate factors, utilizing
internal experience in alignment with Basel II methodology.
- Amortization of intangibles of $99 million after tax (14 cents per
share), compared with $87 million after tax (12 cents per share) in
the fourth quarter last year.
- A loss of $2 million after tax due to the change in fair value of
credit default swaps hedging the corporate loan book, compared with a
loss of $8 million after tax (1 cent per share) in the fourth quarter
last year.
All dollar amounts are expressed in Canadian currency unless otherwise
noted.
1 Reported results are prepared in accordance with Canadian generally
accepted accounting principles (GAAP).
2 Adjusted earnings and reported results referenced in this News
Release are explained in detail on page 5 under the "How the Bank
Reports" section. The items of note include the Bank's amortization
of intangible assets.
TORONTO, Nov. 29 /CNW/ - TD Bank Financial Group (TDBFG or the Bank)
today announced its financial results for the fourth quarter ended October 31,
2007. TDBFG saw broad-based contributions from all its business segments,
which led to strong overall financial performance. The Bank today also
released its 2007 audited Consolidated Financial Statements and Management's
Discussion and Analysis.
"A strong fourth quarter financial performance wrapped up a tremendous
2007. For the year, all TDBFG businesses posted double-digit earnings growth,"
said Ed Clark, TD Bank Financial Group President and Chief Executive Officer.
"This quarter demonstrated the ongoing strength of our domestic businesses and
good progress in our U.S. operations," Clark continued. "In a year of
turbulent markets, clearly the successful altering of our risk-reward profile
was a significant advantage for us. This year was also defined by the
investments we made to expand our U.S. platform, and we're excited about
growing as a leading North American financial institution," Clark added.
FOURTH QUARTER BUSINESS SEGMENT PERFORMANCE
Canadian Personal and Commercial Banking
TD Canada Trust produced another strong quarter with earnings up 14%
compared to the same quarter last year. Real estate secured lending, core
banking, business banking and insurance businesses all contributed to earnings
strength in the quarter.
TD Canada Trust opened 38 new branches during the year, including its
100th branch in Quebec, to increase sales capacity and customer growth across
its personal, small business and commercial banking businesses. The fourth
quarter also saw TD Canada Trust rank No. 1 in overall quality of customer
service in Canada by the Synovate survey, No. 1 in customer satisfaction in
Canada by J.D. Power and Associates, and Best Consumer Internet Bank in Canada
by Global Finance.
"TD Canada Trust capped off another outstanding year by achieving its
20th consecutive quarter of double-digit earnings growth in the fourth quarter
- an exceptional track record," said Clark. "We continued to build upon our
award winning service and convenience brand, opening more branches and
launching longer hours that see our branches open on average 50% longer than
our Canadian peers," Clark said.
Wealth Management
Wealth Management, including the Bank's equity share in TD Ameritrade,
produced another very strong quarter, with a 31% increase in earnings compared
to the fourth quarter of 2006. In Canada, the quarter saw continued earnings
strength in discount brokerage and the advice-based businesses, along with
increased assets under management in TD Mutual Funds. During 2007, Canadian
Wealth Management added 139 client-facing advisors to its network.
TD Ameritrade's fourth quarter contributed $75 million in net income to
the Bank's Wealth Management segment. Operating highlights from the quarter
included record results in earnings, client assets and average client trades
per day.
"We've seen great growth in our Wealth Management segment again this
year, a tribute to the continuing momentum within our Canadian wealth
businesses and our investment in the world-class capabilities of TD
Ameritrade," said Clark. "We have one of the fastest growing Canadian Wealth
Management businesses amongst our peers. In the last five years, earnings have
grown by 26% per year on average. That's an incredible achievement," Clark
added.
U.S. Personal and Commercial Banking
TD Banknorth earned $124 million in the fourth quarter, a 97% increase
over the same period last year, largely reflecting the privatization which
closed in April 2007. On a US dollar basis, higher revenues combined with
sustained expense control demonstrated continued progress in the core
business. TD Banknorth's overall asset quality remained solid.
"TD Banknorth's results exceeded expectations in the quarter despite the
strengthening of the Canadian dollar," Clark said. "While we expect the U.S.
operating environment to remain challenging next year, we're pleased with TD
Banknorth's steady progress towards meeting its organic growth objectives,"
said Clark.
During the quarter, TDBFG announced a definitive agreement to acquire New
Jersey based Commerce Bancorp. The combination of Commerce and TD Banknorth
would double the scale of the Bank's U.S. banking business, and increase the
Bank's overall retail network to 2,000 branches in North America. The parties
are now expecting to mail the proxy statement/prospectus to Commerce
shareholders in December, and as a result, to close in February or March 2008
subject to shareholder approval and approvals from U.S and Canadian regulatory
authorities.
"Commerce perfectly complements TD Banknorth's geographic footprint, and
together, they will provide us with extensive coverage of the biggest regional
banking market in the U.S.," he added.
Wholesale Banking
Wholesale Banking posted a solid fourth quarter with notable
contributions from its foreign exchange, fixed income and equity trading
businesses, which more than offset weak credit trading results. Earnings in
the quarter increased year over year to $157 million, up 8% compared with
earnings in fourth quarter of 2006. On a full year basis, Wholesale Banking
grew adjusted earnings 24%.
"Looking at 2007, our Wholesale Bank produced terrific results, showing
the strength of our domestic franchise businesses," said Clark. "We achieved
top three dealer status in Canada and we continue to make progress on
solidifying this position," Clark said. "Although trading results were mixed
in the fourth quarter, our transparent risk-reward oriented business helped TD
avoid the major pitfalls of recent market turmoil," added Clark.
Conclusion
"TDBFG's strong fourth quarter performance rounded out a fantastic 2007
and was a clear validation of the strategy we've been delivering on for the
past five years," said Clark. "These great results speak to the commitment and
spirit of our phenomenal team of employees across the Bank."
"Overall, I have every confidence the underlying strength of all our
businesses will continue to deliver shareholder value in both the short and
long term," said Clark. "The success of our Canadian franchise has had a lot
to do with our ability to pursue U.S expansion. Just like TD Canada Trust,
Commerce shares our strong belief in convenience, service and relentless focus
on the customer. We're tremendously excited about how this acquisition is set
to transform our organization into a North American powerhouse," Clark
concluded.
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
From time to time, the Bank makes written and oral forward-looking
statements, including in this press release, in other filings with Canadian
regulators or the U.S. Securities and Exchange Commission (SEC), and in other
communications. In addition, the Bank's senior management may make
forward-looking statements orally to analysts, investors, representatives of
the media and others. All such statements are made pursuant to the "safe
harbour" provisions of the U.S. Private Securities Litigation Reform Act of
1995 and applicable Canadian securities legislation. Forward-looking
statements include, among others, statements regarding the Bank's objectives
and targets for 2008 and beyond, and strategies to achieve them, the outlook
for the Bank's business lines, and the Bank's anticipated financial
performance. The economic assumptions for 2008 for each of our business
segments are set out in the 2007 Annual Report under the headings "Economic
Outlook" and "Business Outlook and Focus for 2008", as updated in the
subsequently filed quarterly Reports to Shareholders. Forward-looking
statements are typically identified by words such as "will", "should",
"believe", "expect", "anticipate", "intend", "estimate", "plan", "may" and
"could". By their very nature, these statements require us to make assumptions
and are subject to inherent risks and uncertainties, general and specific,
which may cause actual results to differ materially from the expectations
expressed in the forward-looking statements. Some of the factors - many of
which are beyond our control - that could cause such differences include:
credit, market (including equity and commodity), liquidity, interest rate,
operational, reputational, insurance, strategic, foreign exchange, regulatory,
legal and other risks discussed in the management discussion and analysis
section of the Bank's 2007 Annual Report and in other regulatory filings made
in Canada and with the SEC; general business and economic conditions in
Canada, the U.S. and other countries in which the Bank conducts business, as
well as the effect of changes in monetary policy in those jurisdictions and
changes in the foreign exchange rates for the currencies of those
jurisdictions; the degree of competition in the markets in which the Bank
operates, both from established competitors and new entrants; the accuracy and
completeness of information the Bank receives on customers and counterparties;
the development and introduction of new products and services in markets;
developing new distribution channels and realizing increased revenue from
these channels; the Bank's ability to execute its strategies, including its
integration, growth and acquisition strategies and those of its subsidiaries,
particularly in the U.S.; changes in accounting policies and methods the Bank
uses to report its financial condition, including uncertainties associated
with critical accounting assumptions and estimates; the effect of applying
future accounting changes; global capital market activity; the Bank's ability
to attract and retain key executives; reliance on third parties to provide
components of the Bank's business infrastructure; the failure of third parties
to comply with their obligations to the Bank or its affiliates as such
obligations relate to the handling of personal information; technological
changes; the use of new technologies in unprecedented ways to defraud the Bank
or its customers; legislative and regulatory developments; change in tax laws;
unexpected judicial or regulatory proceedings; continued negative impact of
the U.S. securities litigation environment; unexpected changes in consumer
spending and saving habits; the adequacy of the Bank's risk management
framework, including the risk that the Bank's risk management models do not
take into account all relevant factors; the possible impact on the Bank's
businesses of international conflicts and terrorism; acts of God, such as
earthquakes; the effects of disease or illness on local, national or
international economies; and the effects of disruptions to public
infrastructure, such as transportation, communication, power or water supply.
A substantial amount of the Bank's business involves making loans or otherwise
committing resources to specific companies, industries or countries.
Unforeseen events affecting such borrowers, industries or countries could have
a material adverse effect on the Bank's financial results, businesses,
financial condition or liquidity. The preceding list is not exhaustive of all
possible factors. Other factors could also adversely affect the Bank's
results. For more information, see the discussion starting on page 59 of the
Bank's 2007 Management's Discussion and Analysis. All such factors should be
considered carefully when making decisions with respect to the Bank, and undue
reliance should not be placed on the Bank's forward-looking statements. The
Bank does not undertake to update any forward-looking statements, whether
written or oral, that may be made from time to time by or on its behalf.
This document was reviewed by the Bank's Audit Committee and was approved
by the Bank's Board of Directors, on the Audit Committee's recommendation,
prior to its release.
ANALYSIS OF OPERATING PERFORMANCE
This analysis of operating performance is presented to enable readers to
assess material changes in the operational results of TD Bank Financial Group
(the Bank) for the quarter ended October 31, 2007, compared with the
corresponding periods. This analysis should be read in conjunction with our
unaudited interim Consolidated Financial Statements included in this News
Release and with our 2007 audited Consolidated Financial Statements. This
analysis is dated November 28, 2007. Unless otherwise indicated, all amounts
are expressed in Canadian dollars and have been primarily derived from the
Bank's annual or interim Consolidated Financial Statements prepared in
accordance with Canadian generally accepted accounting principles (GAAP).
Certain comparative amounts have been reclassified to conform with the
presentation adopted in the current period. Additional information relating to
the Bank is on the Bank's website www.td.com, as well as on SEDAR at
www.sedar.com and on the U.S. Securities and Exchange Commission's website at
www.sec.org (EDGAR filers section).
FINANCIAL HIGHLIGHTS(1) (unaudited)
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For the twelve
For the three months ended months ended
(millions of ----------------------------- -------------------
Canadian dollars, Oct. 31 July 31 Oct. 31 Oct. 31 Oct. 31
except as noted) 2007 2007 2006 2007 2006
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Results of operations
Total revenue $3,550 $3,682 $3,318 $14,281 $13,192
Dilution gain, net - - - - 1,559
Provision for credit
losses 139 171 170 645 409
Non-interest expenses 2,241 2,216 2,211 8,975 8,815
Net income - reported(2) 1,094 1,103 762 3,997 4,603
Net income - adjusted(2) 1,021 1,164 875 4,189 3,376
Economic profit(3) 430 578 326 1,876 1,309
Return on common equity
- reported 20.8% 21.0% 15.7% 19.3% 25.5%
Return on invested
capital(3) 16.3% 18.7% 15.2% 17.1% 15.6%
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Financial position
Total assets $422,124 $403,890 $392,914 $422,124 $392,914
Total risk-weighted
assets 152,519 150,783 141,879 152,519 141,879
Total shareholders'
equity 21,404 21,003 19,632 21,404 19,632
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Financial ratios -
reported (per cent)
Efficiency ratio 63.1% 60.2% 66.6% 62.8% 59.8%
Tier 1 capital to
risk-weighted assets 10.3% 10.2% 12.0% 10.3% 12.0%
Tangible common equity
as a % of risk-weighted
assets 7.4% 7.1% 9.1% 7.4% 9.1%
Provision for credit
losses as a % of net
average loans 0.30 0.39 0.40 0.37 0.25
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Common share information
- reported (Canadian dollars)
Per share
Basic earnings $1.52 $1.53 $1.05 $5.53 $6.39
Diluted earnings 1.50 1.51 1.04 5.48 6.34
Dividends 0.57 0.53 0.48 2.11 1.78
Book value 29.23 28.65 26.77 29.23 26.77
Closing share price 71.35 68.26 65.10 71.35 65.10
Shares outstanding
(millions)
Average basic 717.3 719.5 719.7 718.6 716.8
Average diluted 724.4 726.9 726.0 725.5 723.0
End of period 717.8 718.3 717.4 717.8 717.4
Market capitalization
(billions of Canadian
dollars) $51.2 $49.0 $46.7 $51.2 $46.7
Dividend yield 3.0% 2.9% 2.8% 3.0% 2.9%
Dividend payout ratio 37.6 34.6 45.8 38.1 27.9
Price to earnings multiple 13.0 13.6 10.3 13.0 10.3
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Common share information
- adjusted (Canadian
dollars)
Per share
Basic earnings $1.42 $1.61 $1.21 $5.80 $4.70
Diluted earnings 1.40 1.60 1.20 5.75 4.66
Dividend payout ratio 40.3% 32.8% 39.9% 36.4% 38.1%
Price to earnings multiple 12.4 12.3 14.0 12.4 14.0
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(1) Certain comparative amounts have been restated and reclassified to
confirm to the presentation adopted in the current period.
(2) Reported and adjusted results are explained on page 5 under the "How
the Bank Reports" section, which includes a reconciliation between
reported and adjusted results.
(3) Economic profit and return on invested capital are non-GAAP financial
measures and are explained on page 8 under the "Economic Profit and
Return on Invested Capital" section.
HOW WE PERFORMED
How the Bank Reports
The Bank's financial results, as presented on pages 12 to 16 of this News
Release, have been prepared in accordance with GAAP. The Bank refers to
results prepared in accordance with GAAP as "reported" results. The Bank also
utilizes non-GAAP financial measures referred to as "adjusted" results to
assess each of its businesses and to measure overall Bank performance. To
arrive at adjusted results, the Bank removes "items of note", net of income
taxes, from reported results. The items of note are listed in the table on the
following page. The items of note relate to items which management does not
believe are indicative of underlying business performance. The items of note
include the Bank's amortization of intangible assets which primarily relate to
the Canada Trust acquisition in 2000, the TD Banknorth Inc. (TD Banknorth)
acquisition in 2005, and the acquisitions by TD Banknorth of Hudson United
Bancorp (Hudson) in 2006 and Interchange Financial Services Corporation
(Interchange) in 2007, and the amortization of intangibles included in equity
in net income of TD Ameritrade Holding Corporation (TD Ameritrade). The Bank
believes that adjusted results provide the reader with a better understanding
of how management views the Bank's performance. As explained, adjusted results
are different from reported results determined in accordance with GAAP.
Adjusted results and related terms used in this report are not defined terms
under GAAP, and, therefore, may not be comparable to similar terms used by
other issuers.
Operating results - reported (unaudited)(1)
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For the twelve
For the three months ended months ended
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(millions of Oct. 31 July 31 Oct. 31 Oct. 31 Oct. 31
Canadian dollars 2007 2007 2006 2007 2006
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Net interest income $1,808 $1,783 $1,714 $6,924 $6,371
Other income 1,742 1,899 1,604 7,357 6,821
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Total revenue 3,550 3,682 3,318 14,281 13,192
Provision for credit
losses (139) (171) (170) (645) (409)
Non-interest expenses (2,241) (2,216) (2,211) (8,975) (8,815)
Dilution gain, net - - - - 1,559
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Income before provision
for income taxes,
non-controlling
interests in
subsidiaries and
equity in net income
of associated company 1,170 1,295 937 4,661 5,527
Provision for income taxes (153) (248) (175) (853) (874)
Non-controlling interests,
net of tax (8) (13) (48) (95) (184)
Equity in net income of
associated company,
net of tax 85 69 48 284 134
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Net income - reported 1,094 1,103 762 3,997 4,603
Preferred dividends (5) (2) (5) (20) (22)
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Net income available to
common shareholders
- reported $1,089 $1,101 $757 $3,977 $4,581
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(1) Certain comparative amounts have been restated to conform with the
presentation adopted in the current quarter.
Reconciliation of non-GAAP measures(1) (unaudited)
Adjusted net income to reported results
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Operating results For the twelve
- adjusted For the three months ended months ended(2)
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(millions of Oct. 31 July 31 Oct. 31 Oct. 31 Oct. 31
Canadian dollars 2007 2007 2006 2007 2006
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Net interest income $1,808 $1,783 $1,714 $6,924 $6,371
Other income(3) 1,582 1,853 1,616 7,148 6,862
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Total revenues 3,390 3,636 3,330 14,072 13,233
Provision for credit
losses(4) (199) (171) (142) (705) (441)
Non-interest expenses(5) (2,103) (2,085) (2,085) (8,390) (8,260)
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Income before provision
for income taxes,
non-controlling
interests in
subsidiaries and
equity in net income
of associated company 1,088 1,380 1,103 4,977 4,532
Provision for income
taxes(6) (156) (282) (236) (1,000) (1,107)
Non-controlling interests,
net of tax(7) (8) (14) (52) (119) (211)
Equity in net income of
associated company,
net of tax(8) 97 80 60 331 162
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Net income - adjusted 1,021 1,164 875 4,189 3,376
Preferred dividends (5) (2) (5) (20) (22)
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Net income available to
common shareholders
- adjusted $1,016 $1,162 $870 $4,169 $3,354
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Items of note affecting
net income, net of
income taxes
Amortization of
intangibles $(99) $(91) $(87) $(353) $(316)
Gain relating to
restructuring of Visa(9) 135 - - 135 -
TD Banknorth restructuring,
privatization and merger
related charges(10) - - - (43) -
Dilution gain on Ameritrade
transaction, net of costs - - - - 1,665
Dilution loss on the
acquisition of Hudson
United by TD Banknorth - - - - (72)
Balance sheet restructuring
charge in TD Banknorth - - - - (19)
Wholesale Banking
restructuring charge - - - - (35)
Change in fair value of
credit default swaps
hedging the corporate
loan book(11) (2) 30 (8) 30 7
General allowance
release 39 - - 39 39
Other tax items - - - - (24)
Initial set up of specific
allowance for credit
card and overdraft loans - - (18) - (18)
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Total items of note 73 (61) (113) (192) 1,227
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Net income available to
common shareholders
- reported $1,089 $1,101 $757 $3,977 $4,581
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Reconciliation of reported earnings per share (EPS) to adjusted(5)
(unaudited)
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For the twelve
For the three months ended months ended
----------------------------- -------------------
Oct. 31 July 31 Oct. 31 Oct. 31 Oct. 31
(Canadian dollars) 2007 2007 2006 2007 2006
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Diluted - reported $1.50 $1.51 $1.04 $5.48 $6.34
Items of note affecting
income (as above) (0.10) 0.09 0.16 0.27 (1.70)
Items of note affecting
EPS only(12) - - - - 0.02
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Diluted - adjusted $1.40 $1.60 $1.20 $5.75 $4.66
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Basic - reported $1.52 $1.53 $1.05 $5.53 $6.39
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1. Certain comparative amounts have been restated and reclassified to
conform to the presentation adopted in the current period.
2. Items of note in addition to those included in the fourth quarter of
2007 are as follows: first quarter 2006 - $82 million amortization of
intangibles; dilution gain of $1.67 billion (U.S.$1.45 billion) on
the Ameritrade transaction, net of costs; dilution loss of
$72 million on the acquisition of Hudson by TD Banknorth; the Bank's
share of TD Banknorth's balance sheet restructuring charge of
$19 million (US$16 million); restructuring charge in connection with
the previously announced decision to reposition the Bank's global
structured products businesses of $35 million; $10 million gain due
to the change in fair value of credit default swaps (CDS) hedging the
corporate loan book; first quarter 2007 - $83 million amortization of
intangibles; loss of $5 million due to the change in fair value of
CDS hedging the corporate loan book; second quarter 2006 -
$86 million amortization of intangibles; a reduction to the TD
Ameritrade dilution gain of $5 million; gain of $10 million due to
the change in fair value of CDS hedging the corporate loan book;
$39 million general allowance release; second quarter 2007 -
$80 million amortization of intangibles; $43 million TD Banknorth
restructuring, privatization and merger-related charges; gain of
$7 million due to the change in fair value of CDS hedging the
corporate loan book; third quarter 2006 - $61 million amortization of
intangibles; loss of $5 million due to the change in fair value of
CDS hedging the corporate loan book; a tax loss of $24 million as a
result of a higher tax rate applied to the future tax asset related
to specific provisions; third quarter 2007 - $91 million amortization
of intangibles; gain of $30 million due to the change in fair value
of CDS hedging the corporate loan book; fourth quarter 2006 -
$87 million amortization of intangibles; loss of $8 million due to
the change in fair value of CDS hedging the corporate loan book; a
one time loss of $18 million due to the initial set up of specific
allowance for credit card and overdraft loans.
3. Adjusted other income excludes the following items of note: third
quarter 2007 - $46 million gain/loss due to change in fair value of
CDS hedging the corporate loan book; second quarter 2007 -
$11 million gain due to change in fair value of CDS hedging the
corporate loan book; first quarter 2007 - $8 million loss due to
change in fair value of CDS hedging the corporate loan book; second
quarter 2006 - $16 million gain due to change in fair value of CDS
hedging the corporate loan book; first quarter 2006 - $15 million
gain due to the change in fair value of CDS hedging the corporate
loan book; and $52 million balance sheet restructuring charge at TD
Banknorth.
4. Adjusted provision for credit losses excludes the following item of
note: fourth quarter 2007 - $60 million general allowance release;
second quarter 2006 - $60 million general allowance release.
5. Adjusted non-interest expenses excludes the following items of note:
fourth quarter 2007 - $138 million amortization of intangibles; third
quarter 2007 - $131 million amortization of intangibles; second
quarter 2007 - $112 million amortization of intangibles; $86 million
due to TD Banknorth restructuring, privatization and merger-related
charges; first quarter 2007 - $118 million amortization of
intangibles; second quarter 2006 - $125 million amortization of
intangibles; first quarter 2006 - $128 million amortization of
intangibles; and $50 million restructuring charge in connection with
the decision to reposition the Bank's global structured products
businesses.
6. For reconciliation between reported and adjusted provision for income
taxes, see the table below.
7. Adjusted non-controlling interests excludes the following items of
note: third quarter 2007 - $1 million amortization of intangibles;
second quarter 2007 - $4 million amortization of intangibles;
$15 million due to TD Banknorth restructuring, privatization and
merger-related charges; first quarter 2007 - $4 million amortization
of intangibles; second quarter 2006 - $3 million amortization of
intangibles; first quarter 2006 - $15 million balance sheet
restructuring charge at TD Banknorth.
8. Adjusted equity in net income of an associated company excludes the
following items of note: fourth quarter 2007 - $12 million
amortization of intangibles; third quarter 2007 - $11 million
amortization of intangibles; second quarter 2007 - $12 million
amortization of intangibles; first quarter 2007 - $12 million
amortization of intangibles; second quarter 2006 - $7 million
amortization of intangibles.
9. As part of the global restructuring of Visa USA Inc., Visa Canada
Association and Visa International Service Association, which closed
on October 3, 2007 (restructuring date), the Bank received shares of
the new global entity (Visa Inc.) in exchange for the Bank's
membership interest in Visa Canada Association. As required by the
applicable accounting standards, the shares the Bank received in Visa
Inc. were measured at fair value and an estimated gain of
$135 million after tax was recognized in the Corporate segment, based
on results of an independent valuation of the shares. The gain may be
subject to further adjustment based on the finalization of the Bank's
ownership percentage in Visa Inc.
10. The TD Banknorth restructuring, privatization and merger-related
charges include the following: $31 million restructuring charge,
primarily consisted of employee severance costs, the costs of
amending certain executive employment and award agreements and write-
down of long-lived assets due to impairment, included in U.S.
Personal and Commercial Banking; $4 million restructuring charge
related to the transfer of functions from TD Bank USA to TD
Banknorth, included in the Corporate segment; $5 million
privatization charges, which primarily consisted of legal and
investment banking fees, included in U.S. Personal and Commercial
Banking; and $3 million merger-related charges related to conversion
and customer notices in connection with the integration of Hudson and
Interchange with TD Banknorth, included in U.S. Personal and
Commercial Banking. In the Consolidated Statement of Income, the
restructuring charges are included in the restructuring costs while
the privatization and merger-related charges are included in other
non-interest expenses.
11. The Bank purchases CDS to hedge the credit risk in Wholesale
Banking's corporate lending portfolio. These CDS do not qualify for
hedge accounting treatment and are measured at fair value with
changes in fair value recognized in current period's earnings. The
related loans are accounted for at amortized cost. Management
believes that this asymmetry in the accounting treatment between CDS
and loans would result in periodic profit and loss volatility which
is not indicative of the economics of the corporate loan portfolio or
the underlying business performance in Wholesale Banking. As a
result, the CDS are accounted for on an accrual basis in the
Wholesale Banking segment and the gains and losses on the CDS, in
excess of the accrued cost, are reported in the Corporate segment.
Adjusted results exclude the gains and losses on the CDS in excess of
the accrued cost. Previously, this item was described as "Hedging
impact due to AcG-13". As part of the adoption of the new financial
instruments standards, the guidance under Accounting Guideline 13:
Hedging Relationships (AcG-13) was replaced by Canadian Institute of
Chartered Accountants (CICA) Handbook Section 3865, Hedges.
12. Earnings per share (EPS) is computed by dividing income by the
weighted average number of shares outstanding during the period. As a
result, the sum of the quarterly EPS figures may not equal year-to-
date EPS. Second quarter 2006 - one-time adjustment for the impact of
TD Ameritrade earnings, due to the one month lag between fiscal
quarter ends. The results of the Bank include its equity share in TD
Ameritrade from January 25, 2006 to March 31, 2006. As a result of
the one month lag, the impact on earnings per share was approximately
2 cents per share.
Reconciliation of non-GAAP provision for income taxes(1)
-------------------------------------------------------------------------
For the twelve
For the three months ended months ended
----------------------------- -------------------
Oct. 31 July 31 Oct. 31 Oct. 31 Oct. 31
2007 2007 2006 2007 2006
-------------------------------------------------------------------------
Provision for income
taxes - reported $153 $248 $175 $853 $874
Increase (decrease)
resulting from items
of note:
Amortization of
intangibles 51 50 47 184 205
Gain relating to
restructuring of Visa (28) - - (28) -
TD Banknorth restructuring
privatization and merger
related charges - - - 28 -
Dilution gain on
Ameritrade, net of costs - - - - 34
Balance sheet restructuring
charge in TD Banknorth - - - - 18
Wholesale Banking
restructuring charge - - - - 15
Change in fair value of
credit default swaps
hedging the corporate
loan book 1 (16) 4 (16) (4)
Other tax items - - - - (24)
General allowance release (21) - - (21) (21)
Initial setup of specific
allowance for credit card
and overdraft loans - - 10 - 10
-------------------------------------------------------------------------
Tax effect - items of note 3 34 61 147 233
-------------------------------------------------------------------------
Provision for income taxes
- adjusted $156 $282 $236 $1,000 $1,107
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Certain comparative amounts have been restated to conform with the
presentation adopted in the current quarter.
Economic Profit and Return on Invested Capital
The Bank utilizes economic profit as a tool to measure shareholder value
creation. Economic profit is adjusted net income available to common
shareholders less a charge for average invested capital. Average invested
capital is equal to average common equity for the period plus the average
cumulative after-tax goodwill and intangible assets amortized as of the
reporting date. The rate used in the charge for capital is the equity cost of
capital calculated using the capital asset pricing model. The charge
represents an assumed minimum return required by common shareholders on the
Bank's invested capital. The Bank's goal is to achieve positive and growing
economic profit.
Return on invested capital (ROIC) is adjusted net income available to
common shareholders divided by average invested capital. ROIC is a variation
of the economic profit measure that is useful in comparison to the equity cost
of capital. Both ROIC and the cost of capital are percentage rates, while
economic profit is a dollar measure. When ROIC exceeds the equity cost of
capital, economic profit is positive. The Bank's goal is to maximize economic
profit by achieving ROIC that exceeds the equity cost of capital.
Economic profit and ROIC are not defined terms under GAAP. Securities
regulators require that companies caution readers that earnings and other
measures adjusted to a basis other than GAAP do not have standardized meanings
under GAAP and therefore, may not be comparable to similar terms used by other
issuers.
The following table reconciles between the Bank's economic profit, return
on invested capital and adjusted net income. Adjusted earnings and related
terms are discussed in the "How the Bank Reports" section.
Reconciliation of Economic Profit, Return on Invested Capital and
Adjusted Net Income
-------------------------------------------------------------------------
For the twelve
For the three months ended months ended
----------------------------- -------------------
Oct. 31 July 31 Oct. 31 Oct. 31 Oct. 31
2007 2007 2006 2007 2006
-------------------------------------------------------------------------
Average common equity $20,808 $20,771 $19,069 $20,572 $17,983
Average cumulative
goodwill/intangible
assets amortized,
net of income taxes 3,941 3,857 3,641 3,825 3,540
-------------------------------------------------------------------------
Average invested
capital $24,749 $24,628 $22,710 $24,397 $21,523
Rate charged for
invested capital 9.4% 9.4% 9.5% 9.4% 9.5%
-------------------------------------------------------------------------
Charge for invested
capital $(586) $(584) $(544) $(2,293) $(2,045)
-------------------------------------------------------------------------
Net income available to
common shareholders
- reported $1,089 $1,101 $757 $3,977 $4,581
Items of note impacting
income, net of income
taxes (73) 61 113 192 (1,227)
-------------------------------------------------------------------------
Net income available to
common shareholders
- adjusted $1,016 $1,162 $870 $4,169 $3,354
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Economic profit $430 $578 $326 $1,876 $1,309
Return on invested
capital 16.3% 18.7% 15.2% 17.1% 15.6%
-------------------------------------------------------------------------
HOW OUR BUSINESSES PERFORMED
For management reporting purposes, the Bank's operations and activities
are organized around the following operating business segments: Canadian
Personal and Commercial Banking, Wealth Management, including TD Ameritrade,
U.S. Personal and Commercial Banking, and Wholesale Banking. The Bank's other
activities are grouped into the Corporate segment. Results of each business
segment reflect revenue, expenses, assets and liabilities generated by the
business in that segment. The Bank measures and evaluates the performance of
each segment based on adjusted results where applicable, and for those
segments the Bank notes that the measure is adjusted. Amortization of
intangible expense is included in the Corporate segment. Accordingly, net
income for the operating business segments is presented before amortization of
intangibles, as well as any other items of note not attributed to the
operating segments. For further details, see the "How the Bank Reports"
section on page 5, the "Business Focus" section in the 2007 Management's
Discussion and Analysis and Note 27 to the 2007 audited Consolidated Financial
Statements. For information concerning the Bank's measures of economic profit
and return on invested capital, which are non-GAAP measures, see page 8.
Segmented information also appears in Appendix A on page 16.
Net interest income within Wholesale Banking is disclosed on a taxable
equivalent basis (TEB), which means that the value of non-taxable or
tax-exempt income, including dividends, is adjusted to its equivalent
before-tax value. Using TEB allows the Bank to measure income from all
securities and loans consistently and makes for a more meaningful comparison
of net interest income with similar institutions. The TEB adjustment reflected
in the Wholesale Banking segment is eliminated in the Corporate segment. The
TEB adjustment for the quarter was $247 million, compared with $92 million in
the fourth quarter last year, and $161 million in the prior quarter. On a full
year basis, the TEB adjustment was $664 million, compared with $343 million in
the last year.
As noted in Note 4 to the 2007 Consolidated Financial Statements, the
Bank securitizes retail loans and receivables held by Canadian Personal and
Commercial Banking in transactions that are accounted for as sales. For the
purpose of segmented reporting, Canadian Personal and Commercial Banking
accounts for the transactions as though they are financing arrangements.
Accordingly, the interest income earned on the assets sold net of the funding
costs incurred by the purchaser trusts is recorded in net interest income and
the provision for credit losses related to these assets is charged to
provision for (reversal of) credit losses. This accounting is reversed in the
Corporate segment and the gain recognized on sale which is in compliance with
appropriate accounting standards together with income earned on the retained
interests net of credit losses incurred are included in other income.
Canadian Personal and Commercial Banking
Canadian Personal and Commercial Banking net income for the quarter was
$572 million, an increase of $71 million, or 14%, compared with the fourth
quarter last year, and a decrease of $25 million, or 4%, compared with the
prior quarter. The annualized return on invested capital for the quarter was
27%, compared with 25% in the fourth quarter last year and 28% in the prior
quarter.
Revenue grew by $204 million, or 10%, compared with the fourth quarter
last year, primarily due to volume growth across most banking products,
particularly in real-estate secured lending, credit cards and deposits. For
similar reasons, revenue increased by $51 million, or 2%, compared with the
prior quarter. Margin on average earning assets decreased by 4 bps from 3.07%
to 3.03% compared with both the fourth quarter last year and the prior
quarter. Volatility in credit markets that began in August this year impacted
margins on the prime-based products. Escalating competition in high-yield
saving deposit accounts continued to put pressure on margins.
Compared with the fourth quarter last year, real-estate secured lending
volume (including securitizations) grew by $14.2 billion or 11%, personal
deposit volume grew by $3.4 billion or 3%, and consumer loan volume grew by
$1.7 billion or 8%. Business deposits volume and business loans and
acceptances volume both grew by 9%. Gross originated insurance premiums grew
by $43 million or 7%. As at August 31, 2007, personal deposit market share was
20.9%, down 56 bps compared with last year and down 17 bps compared with the
prior quarter, as a result of share decrease in term deposits. Personal
lending market share was 19.9%, down 10 bps compared with last year and down
12 bps compared with the prior quarter. Small business lending (credit limits
of less than $250,000) market share as at June 30, 2007 was 18.0%, up 44 bps
compared with last year, and down 20 bps compared with the prior quarter.
Credit card market share, for the month of August 2007, measured by the
average outstanding balance, was 8.4%, up 35 bps compared with last year and
down 1bp from the prior quarter.
Provision for credit losses for the quarter increased by $44 million, or
33%, compared with the fourth quarter last year and by $25 million, or 17%,
compared with the prior quarter. Personal banking provision for credit losses
of $168 million was $54 million, or 47% higher than the fourth quarter last
year and $21 million, or 14% higher quarter over quarter, primarily due to
higher personal lending and credit card volumes and changes in credit granting
criteria. Business banking provision for credit losses was $8 million for the
quarter, a decrease of $10 million, or 56%, from the fourth quarter last year
and an increase of $4 million from the prior quarter. Annualized provision for
credit losses as a percentage of credit volume was 0.37%, an increase of 6 bps
compared with the fourth quarter last year and 4 bps compared with the prior
quarter, primarily due to higher personal lending and credit card volumes.
Non-interest expenses increased by $46 million, or 4%, compared with the
fourth quarter last year, primarily due to higher employee compensation and
investments in new branches. Non-interest expenses increased by $64 million,
or 6%, compared with the prior quarter, mainly due to higher expenses related
to the preparation for longer branch hours starting November 1, 2007 as well
as new branches, and business volume growth. The full time equivalent (FTE)
staffing levels increased by 1,326, or 4%, compared with the fourth quarter
last year, primarily due to the addition of sales and service personnel in
branches and call centres, including the support for the launch of longer
branch hours, as well as continued growth in the commercial and insurance
businesses. FTE staffing levels increased by 511, or 2%, compared with the
prior quarter, primarily due to the addition of sales and service personnel in
branches and call centres. The efficiency ratio for the current quarter was
51.8%, compared with 54.8% in the fourth quarter last year and 50.0% in the
prior quarter.
The outlook for revenue growth is expected to moderate in 2008 as volume
growth slows in the credit cards business and margins continue to be
vulnerable to volatility in the credit markets. Volume growth is susceptible
to a U.S.-led economic downturn. Revenue growth will benefit from increasing
our leadership position in branch hours and new branch and marketing
investments, as well as improved customer cross-sell and productivity
improvements. PCL rates as a function of loan volumes are expected to reflect
evolving conditions in the Canadian economy. Expense growth will be slightly
higher relative to last year due to investments in new branches, longer hours
and systems and infrastructure to maintain momentum in revenue growth.
Wealth Management
Wealth Management's net income for the quarter was $194 million, an
increase of $46 million, or 31%, compared with the fourth quarter last year,
and an increase of $9 million, or 5%, compared with the prior quarter. The
Bank's investment in TD Ameritrade generated net income of $75 million, an
increase of $22 million, or 42%, compared with the fourth quarter last year,
and an increase of $16 million, or 27% compared with the prior quarter. The
annualized return on invested capital increased to 19.8%, compared with 15.8%
in the fourth quarter last year and increased by 1.2% from the prior quarter.
Revenue grew by $77 million, or 15%, compared with the fourth quarter
last year, primarily due to a combination of higher transaction volumes in
discount and full service brokerage, higher net interest and fee-based income
and strong growth in client assets. Commissions in the discount brokerage
business were negatively impacted by a decline in commission per trade as a
result of price reductions in the active trader and affluent household
segments, though this was substantially offset by increased trade volumes.
Revenue decreased by $6 million, or 1%, compared with the prior quarter,
primarily due to lower volumes in mutual fund and advice-based businesses as a
result of market volatility. Revenue was positively impacted by a new fixed
administration fee in TD Asset Management (TDAM) for certain funds. Effective
January 1, 2007, TDAM began absorbing the operating expenses of certain funds
in return for a fixed administration fee. Previously, the operating costs were
borne by the individual funds. This had the impact of increasing both revenue
and expenses. Non-interest expenses increased by $42 million, or 12%, compared
with the fourth quarter last year, primarily due to higher volume-related
payments to sellers of the Bank's mutual funds, higher sales force
compensation in advice-based businesses driven by increased revenues, and
continued investment in client-facing advisors and related support staff.
Non-interest expenses increased slightly by $4 million, or 1%, compared with
the prior quarter. The efficiency ratio for the current quarter was 68.7%,
compared with 70.8% in the fourth quarter last year and 67.3% in the prior
quarter.
Assets under management of $160 billion at October 31, 2007 increased
$9 billion, or 6%, from October 31, 2006, due to market appreciation and the
addition of net new client assets. Assets under administration totalled
$185 billion at the end of the quarter, increasing $24 billion, or 15%, from
October 31, 2006 due to market appreciation and the addition of net new client
assets.
TD Ameritrade reported record earnings of US$200 million for its quarter
ended September 30, 2007 on average client trades per day of 278,000 and
client assets of US$302.7 billion, up 15.7% or US$41 billion from last year.
While volatility in the capital markets may impact short term results,
the outlook remains favourable and growth in assets, advisors and earnings is
expected to continue.
Wealth Management
-------------------------------------------------------------------------
For the twelve
For the three months ended months ended
----------------------------- -------------------
(millions of Oct. 31 July 31 Oct. 31 Oct. 31 Oct. 31
Canadian dollars 2007 2007 2006 2007 2006
-------------------------------------------------------------------------
Canadian Wealth $119 $126 $ 95 $501 $410
TD Ameritrade/
TD Waterhouse U.S.A. 75 59 53 261 180
-------------------------------------------------------------------------
Net income $194 $185 $148 $762 $590
-------------------------------------------------------------------------
-------------------------------------------------------------------------
U.S. Personal and Commercial Banking
U.S. Personal and Commercial Banking's reported net income for the fourth
quarter was $124 million and the annualized return on invested capital was
5.1%. Net income increased by $61 million from the fourth quarter of 2006 and
by $15 million from the prior quarter. Much of the increase in net income
relates to an increased ownership percentage in TD Banknorth from the
privatization transaction that was completed in April 2007. The average
ownership percentage increased from 57% in the fourth quarter of last year and
91% in the prior quarter to 100% in the current quarter. In addition, since
April 2007, the segment includes the banking operations of TD Bank USA which
provides banking services to customers of TD Ameritrade (prior periods have
not been restated to include the results of TD Bank USA as they were not
significant).
Revenue declined by $3 million, or 1% from the fourth quarter of last
year, and declined by $8 million, or 2%, compared with the prior quarter,
primarily due to a stronger Canadian dollar. Revenue in U.S. dollars increased
by 6% from the fourth quarter of last year and by 3% over the prior quarter.
Margin on average earning assets was largely unchanged compared with the
fourth quarter last year, and increased 14 bps compared with the prior
quarter. Net interest income remained under pressure from a flat yield curve
and continued strong competition for deposits and high quality loans.
Provision for credit losses for the quarter increased by $20 million,
compared with the fourth quarter last year, and by $2 million from the prior
quarter. The increased provision for credit losses compared with the fourth
quarter last year was primarily due to higher levels of impaired loans. Net
impaired loans increased by $99 million, up from $101 million in the fourth
quarter last year, which was a historically low level, primarily due to a
slowdown in the residential real-estate construction market. Net impaired
loans were essentially flat with the prior quarter. Net impaired loans as a
percentage of total loans and leases were 0.76%, compared with 0.35% as at the
end of last year, and unchanged from the end of the prior quarter.
Non-interest expenses declined by $31 million, or 11%, compared with the
fourth quarter last year, primarily due to cost control initiatives and a
stronger Canadian dollar. Non-interest expenses declined $12 million, or 4%,
compared with the prior quarter due entirely to a stronger Canadian dollar.
The average FTE staffing levels declined by 875 compared with the fourth
quarter last year and by 249 from the prior quarter, primarily due to staff
reductions related to improved business processes and branch closings. The
efficiency ratio improved to 55.4%, compared with 61.5% in the fourth quarter
last year, and 56.9% in the prior quarter.
While the banking environment in the U.S. is expected to remain
challenging, and there is uncertainty as to the continuing effects of the
ongoing market issues related to subprime real estate lending, it is expected
that the contribution of U.S. Personal and Commercial Banking should continue
to increase modestly due to organic growth.
Wholesale Banking
Wholesale Banking reported net income for the quarter of $157 million, an
increase of $11 million, or 8%, compared with the fourth quarter of last year,
and a decrease of $96 million, or 38%, compared with the prior quarter. The
annualized return on invested capital was 21% in the current quarter, compared
with 24% in the fourth quarter last year and 37% in the prior quarter.
Wholesale Banking revenue was derived primarily from capital markets,
investing and corporate lending activities. Revenue for the quarter was
$525 million, compared with $493 million in the fourth quarter last year and
$692 million in the prior quarter. The capital markets businesses generate
revenue from advisory, underwriting, trading, facilitation and execution
services. Capital markets revenue increased from the fourth quarter last year
due to stronger non-taxable transaction revenue in equity trading and stronger
foreign exchange trading, due primarily to volatility in currency markets.
These increases were partially offset by weaker credit trading due to
volatility in the credit markets and a breakdown in traditional pricing
relationships between corporate bonds and credit default swaps (CDS) during
the quarter. Capital markets revenue decreased from the prior quarter,
primarily due to weaker credit trading and lower underwriting and advisory
revenue. The equity investment portfolio delivered lower security gains this
quarter compared with the fourth quarter last year and the prior quarter.
Corporate lending revenue was flat compared with the fourth quarter last year
and was lower than the prior quarter.
Provision for credit losses is comprised of allowances for credit losses
and accrual costs for credit protection. Provision for credit losses was
$4 million in the quarter, compared with $13 million in the fourth quarter of
last year and $8 million in the prior quarter. The provision for the quarter
includes the cost of credit protection and $9 million in recoveries. The prior
quarter included the cost of credit protection and $3 million in recoveries.
Wholesale Banking continues to proactively manage its credit risk and
currently holds $2.6 billion in notional CDS protection, a decrease of
$0.3 billion from the fourth quarter last year, and a decrease of $0.2 billion
from the prior quarter. The decrease is due primarily to the strengthening of
the Canadian dollar relative to the U.S. dollar, as most of the protection is
denominated in U.S. currency.
Expenses for the quarter were $274 million, a decrease of $19 million, or
6%, compared with the fourth quarter last year, due primarily to lower
severance and variable compensation. Expenses decreased $52 million, or 16%,
from the prior quarter due to lower variable compensation. The efficiency
ratio for the current quarter was 52%, compared with 59% in the fourth quarter
last year and 47% in the prior quarter.
Overall the Wholesale Bank had a solid quarter. Increased volatility and
reduced liquidity in the capital markets experienced in the fourth quarter is
expected to continue into 2008 and may result in reduced levels of capital
markets activity, but it may also present additional trading opportunities.
For 2008, key priorities remain: solidifying our position as a top three
dealer in Canada, seeking opportunities to grow proprietary trading in
scalable and liquid markets, maintaining a superior rate of return on invested
capital and enhancing the efficiency ratio through improved cost control.
Corporate
Corporate segment reported a net income of $47 million for the quarter,
compared with a net loss of $96 million in the same quarter of last year and a
net loss of $41 million in the prior quarter. The adjusted net loss for the
quarter was $26 million, compared with an adjusted net income of $17 million
in the same quarter last year and $20 million in the prior quarter.
Compared with last year on an adjusted basis, the net loss was driven by
lower securitization gains, a decrease in earnings on capital, lower gains on
investments and the benefit of interest on income tax refunds in the prior
year. The prior quarter benefited from favourable tax items and the gain on
sale of TD Ameritrade shares.
Adjusted net loss for the current quarter excluded a gain of $163 million
($135 million after tax) related to the estimated value of the shares the Bank
received in Visa Inc. in exchange for its membership interest in Visa Canada
Association as part of the global restructuring of Visa, and a general
allowance release of $60 million ($39 million after tax) based on revised loss
rate factors, utilizing internal experience in alignment with Basel II
methodology. Losses in excess of accrued costs for the period in CDS hedging
the corporate loan book were $9 million ($6 million after tax) lower than the
prior year, while amortization of intangible assets increased $18 million
($12 million after tax). Adjusted prior year results also excluded an
$18 million after tax expense relating to the initial set up of the specific
allowance for credit card and overdraft loans that resulted from a change in
the provisioning methodology applied by the Bank.
Compared with the prior quarter, amortization of intangibles increased
$12 million ($8 million after tax) and the gain in excess of accrued costs in
CDS hedging the corporate loan book declined $49 million ($32 million after
tax).
BASIS OF PREPARATION OF FINANCIAL STATEMENTS
The Bank's unaudited consolidated financial results, as presented on
pages 12 to 16 of this News Release, have been prepared in accordance with
GAAP. However, certain additional disclosures required by GAAP have not been
presented in this document. These consolidated financial results should be
read in conjunction with the Bank's audited consolidated financial statements
for the year ended October 31, 2007. The accounting policies used in the
preparation of these consolidated financial results are consistent with those
used in the Bank's October 31, 2007 audited consolidated financial statements.
INTERIM CONSOLIDATED FINANCIAL STATEMENTS (unaudited)
INTERIM CONSOLIDATED BALANCE SHEET (unaudited)
-------------------------------------------------------------------------
As at
---------------------
Oct. 31 Oct. 31
(millions of Canadian dollars) 2007 2006
-------------------------------------------------------------------------
ASSETS
Cash and due from banks $ 1,790 $ 2,019
Interest-bearing deposits with banks 14,746 8,763
-------------------------------------------------------------------------
16,536 10,782
-------------------------------------------------------------------------
Securities
Trading 77,637 77,482
Designated as trading under the fair value option 2,012 -
Available-for-sale 35,650 -
Held-to-maturity 7,737 -
Investment - 46,976
-------------------------------------------------------------------------
123,036 124,458
-------------------------------------------------------------------------
Securities purchased under reverse repurchase
agreements 27,648 30,961
-------------------------------------------------------------------------
Loans
Residential mortgages 58,485 53,425
Consumer instalment and other personal 67,532 63,130
Credit card 5,700 4,856
Business and government 44,258 40,514
Business and government designated as trading
under the fair value option 1,235 -
-------------------------------------------------------------------------
177,210 161,925
Allowance for credit losses (1,295) (1,317)
-------------------------------------------------------------------------
Loans, net of allowance for credit losses 175,915 160,608
-------------------------------------------------------------------------
Other
Customers' liability under acceptances 9,279 8,676
Investment in TD Ameritrade 4,515 4,379
Trading derivatives 36,052 27,845
Goodwill 7,918 7,396
Other intangibles 2,104 1,946
Land, buildings and equipment 1,822 1,862
Other assets 17,299 14,001
-------------------------------------------------------------------------
78,989 66,105
-------------------------------------------------------------------------
Total assets $ 422,124 $ 392,914
-------------------------------------------------------------------------
-------------------------------------------------------------------------
LIABILITIES
-------------------------------------------------------------------------
Deposits
Personal $ 147,561 $ 146,636
Banks 10,162 14,186
Business and government 73,322 100,085
Trading 45,348 -
-------------------------------------------------------------------------
276,393 260,907
-------------------------------------------------------------------------
Other
Acceptances 9,279 8,676
Obligations related to securities sold short 24,195 27,113
Obligations related to securities sold under
repurchase agreements 16,574 18,655
Trading derivatives 39,028 29,337
Other liabilities 23,829 17,461
-------------------------------------------------------------------------
112,905 101,242
-------------------------------------------------------------------------
Subordinated notes and debentures 9,449 6,900
-------------------------------------------------------------------------
Liabilities for preferred shares and capital
trust securities 1,449 1,794
-------------------------------------------------------------------------
Non-controlling interests in subsidiaries 524 2,439
-------------------------------------------------------------------------
SHAREHOLDERS' EQUITY
Common shares (millions of shares issued and
outstanding: Oct. 31, 2007 - 717.8;
Oct. 31, 2006 - 717.4) 6,577 6,334
Preferred shares (millions of shares issued and
outstanding: Oct. 31, 2007 - 17.0;
Oct. 31, 2006 - 17.0) 425 425
Contributed surplus 119 66
Retained earnings 15,954 13,725
Accumulated other comprehensive income (1,671) (918)
-------------------------------------------------------------------------
21,404 19,632
-------------------------------------------------------------------------
Total liabilities and shareholders' equity $ 422,124 $ 392,914
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Certain comparative amounts have been reclassified to conform to the
current period's presentation.
INTERIM CONSOLIDATED STATEMENT OF INCOME (unaudited)
-------------------------------------------------------------------------
For the three For the twelve
months ended months ended
-------------------------------------------
Oct. 31 Oct. 31 Oct. 31 Oct. 31
(millions of Canadian dollars) 2007 2006 2007 2006
-------------------------------------------------------------------------
Interest income
Loans $ 3,310 $ 3,004 $ 12,729 $ 10,832
Securities
Dividends 256 232 928 837
Interest 983 920 3,838 3,598
Deposits with banks 152 74 357 302
-------------------------------------------------------------------------
4,701 4,230 17,852 15,569
-------------------------------------------------------------------------
Interest expense
Deposits 2,223 1,957 8,247 7,081
Subordinated notes and
debentures 127 96 484 388
Preferred shares and capital
trust securities 28 31 109 126
Other liabilities 515 432 2,088 1,603
-------------------------------------------------------------------------
2,893 2,516 10,928 9,198
-------------------------------------------------------------------------
Net interest income 1,808 1,714 6,924 6,371
-------------------------------------------------------------------------
Other income
Investment and securities services 574 521 2,400 2,259
Credit fees 112 110 420 371
Net securities gains 60 87 326 305
Trading income (52) 98 591 797
Income (loss) from financial
instruments designated as trading
under the fair value option 36 - (55) -
Service charges 263 246 1,019 937
Loan securitizations 80 97 397 346
Card services 120 113 457 383
Insurance, net of claims 243 214 1,005 896
Trust fees 31 31 133 130
Other 275 87 664 397
-------------------------------------------------------------------------
1,742 1,604 7,357 6,821
-------------------------------------------------------------------------
Total revenues 3,550 3,318 14,281 13,192
-------------------------------------------------------------------------
Provision for credit losses 139 170 645 409
-------------------------------------------------------------------------
Non-interest expenses
Salaries and employee benefits 1,119 1,116 4,606 4,485
Occupancy, including depreciation 188 187 736 701
Equipment, including depreciation 167 164 614 599
Amortization of other intangibles 138 126 499 505
Restructuring costs - - 67 50
Marketing and business
development 115 114 445 470
Brokerage-related fees 61 51 233 222
Professional and advisory
services 135 149 488 540
Communications 49 54 193 201
Other 269 250 1,094 1,042
-------------------------------------------------------------------------
2,241 2,211 8,975 8,815
-------------------------------------------------------------------------
Dilution gain, net - - - 1,559
-------------------------------------------------------------------------
Income before provision for
income taxes, non-controlling
interests in subsidiaries and
equity in net income of an
associated company 1,170 937 4,661 5,527
Provision for income taxes 153 175 853 874
Non-controlling interests in
subsidiaries, net of income
taxes 8 48 95 184
Equity in net income of an
associated company, net of
income taxes 85 48 284 134
-------------------------------------------------------------------------
Net income 1,094 762 3,997 4,603
Preferred dividends 5 5 20 22
-------------------------------------------------------------------------
Net income available to
common shareholders $ 1,089 $ 757 $ 3,977 $ 4,581
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Average number of common
shares outstanding (millions)
Basic 717.3 719.7 718.6 716.8
Diluted 724.4 726.0 725.5 723.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Earnings per share
(in dollars)
Basic $ 1.52 $ 1.05 $ 5.53 $ 6.39
Diluted 1.50 1.04 5.48 6.34
Dividends per share
(in dollars) 0.57 0.48 2.11 1.78
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Certain comparative amounts have been reclassified to conform to the
current period's presentation.
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY
(unaudited)
-------------------------------------------------------------------------
For the twelve
months ended
---------------------
Oct. 31 Oct. 31
(millions of Canadian dollars) 2007 2006
-------------------------------------------------------------------------
Common shares
Balance at beginning of year $ 6,334 $ 5,872
Proceeds from shares issued on exercise of options 173 119
Shares issued as a result of dividend
reinvestment plan 85 328
Impact of shares sold (acquired) in Wholesale Banking 30 (20)
Repurchase of common shares (45) (35)
Issued on acquisition of VFC - 70
-------------------------------------------------------------------------
Balance at end of year 6,577 6,334
-------------------------------------------------------------------------
Preferred shares
Balance at beginning of year 425 -
Share issues - 425
-------------------------------------------------------------------------
Balance at end of year 425 425
-------------------------------------------------------------------------
Contributed surplus
Balance at beginning of year 66 40
Stock options 1 26
Conversion of TD Banknorth options on privatization 52 -
-------------------------------------------------------------------------
Balance at end of year 119 66
-------------------------------------------------------------------------
Retained earnings
Balance at beginning of year 13,725 10,650
Transition adjustment on adoption of Financial
Instruments standards 80 -
Net income 3,997 4,603
Common dividends (1,517) (1,278)
Preferred dividends (20) (22)
Premium paid on repurchase of common shares (311) (229)
Other - 1
-------------------------------------------------------------------------
Balance at end of year 15,954 13,725
-------------------------------------------------------------------------
Accumulated other comprehensive income, net
of income taxes
Balance at beginning of year (918) (696)
Transition adjustment on adoption of Financial
Instrument standards 426 -
Other comprehensive income for the period (1,179) (222)
-------------------------------------------------------------------------
Balance at end of year (1,671) (918)
-------------------------------------------------------------------------
Total shareholders' equity $ 21,404 $ 19,632
-------------------------------------------------------------------------
-------------------------------------------------------------------------
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (unaudited)
-------------------------------------------------------------------------
For the three For the twelve
months ended months ended
-------------------------------------------
Oct. 31 Oct. 31 Oct. 31 Oct. 31
(millions of Canadian dollars) 2007 2006 2007 2006
-------------------------------------------------------------------------
Net income $ 1,094 $ 762 $ 3,997 $ 4,603
-------------------------------------------------------------------------
Other comprehensive income
(loss), net of income taxes
Change in unrealized gains
and (losses) on available-
for-sale securities, net
of hedging activities(1) 235 - 159 -
Reclassification to earnings
in respect of available-
for-sale securities(2) (17) - (53) -
Change in foreign currency
translation gains and
(losses) on investments in
subsidiaries, net of
hedging activities(3),(4) (604) 33 (1,155) (222)
Change in gains and (losses)
on derivative instruments
designated as cash flow
hedges(5) 140 - (170) -
Reclassification to earnings
of losses on cash
flow hedges(6) 18 - 40 -
-------------------------------------------------------------------------
Other comprehensive income
for the period (228) 33 (1,179) (222)
-------------------------------------------------------------------------
Comprehensive income
for the period $ 866 $ 795 $ 2,818 $ 4,381
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Net of income tax expense of $128 million and $94 million for the
three and twelve months ended Oct. 31, 2007 respectively.
(2) Net of income tax expense of $8 million and $32 million for the three
and twelve months ended Oct. 31, 2007 respectively.
(3) Net of income tax expense of $640 million for the three months ended
Oct. 31, 2007 (three months ended Oct. 31, 2006 - tax expense of
$35 million). Net of income tax expense of $909 million for the
twelve months ended Oct. 31, 2007 (twelve months ended Oct. 31, 2006
- $209 million).
(4) Includes $1,304 million of after-tax gains for the three months ended
Oct. 31, 2007 (three months ended Oct. 31, 2006 - $62 million of
after-tax gain) arising from hedges of the Bank's investment in
foreign operations. Includes $1,864 million of after-tax gains for
the twelve months ended Oct. 31, 2007 (twelve months ended Oct. 31,
2006 - $432 million of after-tax gains) arising from hedges of the
Bank's investment in foreign operations.
(5) Net of income tax expense of $64 million and tax benefit of
$91 million for the three and twelve months ended Oct. 31, 2007
respectively.
(6) Net of income tax benefit of $11 million and $22 million for the
three and twelve months ended Oct. 31, 2007 respectively.
Certain comparative amounts have been reclassified to conform to the
current period's presentation.
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited)
-------------------------------------------------------------------------
For the three For the twelve
months ended months ended
-------------------------------------------
Oct. 31 Oct. 31 Oct. 31 Oct. 31
(millions of Canadian dollars) 2007 2006 2007 2006
-------------------------------------------------------------------------
Cash flows from (used in)
operating activities
Net income $ 1,094 $ 762 $ 3,997 $ 4,603
Adjustments to determine net
cash from (used in) operating
activities:
Provision for credit losses 139 170 645 409
Restructuring costs - - 67 50
Depreciation 100 98 362 343
Amortization of other
intangibles 138 126 499 505
Stock options 1 10 53 26
Dilution gain, net - - - (1,559)
Net securities gains (60) (87) (326) (305)
Net loss (gain) on
securitizations (28) (46) (141) (119)
Equity in net income of an
associated company (85) (48) (284) (134)
Non-controlling interests 8 48 95 184
Future income taxes 148 (76) 244 (17)
Changes in operating assets
and liabilities:
Current income taxes payable 376 (14) 558 88
Interest receivable and payable 101 54 (296) (146)
Trading securities (4,958) (3,749) (2,167) (11,707)
Unrealized (gains) losses and
amounts receivable on
derivative contracts (6,532) 4,463 (8,207) 5,806
Unrealized losses and amounts
payable on derivative
contracts 9,969 (4,043) 9,691 (4,161)
Other 384 2,831 (736) (252)
-------------------------------------------------------------------------
Net cash from (used in)
operating activities 795 499 4,054 (6,386)
-------------------------------------------------------------------------
Cash flows from (used in)
financing activities
Change in deposits 8,657 5,120 14,154 9,246
Securities sold under repurchase
agreements 416 (776) (2,081) 6,665
Securities sold short (2,429) 2,960 (2,918) 2,707
Issue of subordinated notes
and debentures - - 4,072 2,341
Repayment of subordinated notes
and debentures (525) (28) (1,399) (978)
Subordinated notes and debentures
(acquired) sold in Wholesale
Banking 40 7 4 8
Liability for preferred shares
and capital trust securities (349) - (345) (1)
Translation adjustment on
subordinated notes and debentures
issued in a foreign currency (71) 6 (128) (45)
Common shares issued on exercise
of options 41 26 173 119
Common shares (acquired) sold
in Wholesale Banking 4 (36) 30 (20)
Repurchase of common shares (16) (35) (45) (35)
Dividends paid in cash on
common shares (386) (321) (1,432) (950)
Premium paid on common shares
repurchased (104) (229) (311) (229)
Issuance of preferred shares - - - 425
Dividends paid on preferred shares (5) (5) (20) (22)
-------------------------------------------------------------------------
Net cash from financing
activities 5,273 6,689 9,754 19,231
-------------------------------------------------------------------------
Cash flows from (used in)
investing activities
Interest-bearing deposits
with banks (3,403) 1,473 (5,983) 2,982
Activity in available-for-sale,
held-to-maturity and investment
securities:
Purchases (6,475) (40,446) (96,846) (132,903)
Proceeds from maturities 7,262 34,103 92,880 112,962
Proceeds from sales 2,264 2,996 10,372 18,599
Activity in lending activities:
Origination and acquisitions (45,412) (39,358) (150,671) (132,864)
Proceeds from maturities 39,932 31,737 122,509 113,477
Proceeds from sales 303 116 5,084 2,691
Proceeds from loan
securitizations 1,223 5,473 9,937 9,939
Land, buildings and equipment (98) (95) (322) (494)
Securities purchased under
reverse repurchase agreements (1,743) (3,107) 3,313 (4,578)
TD Banknorth share repurchase
program - - - (290)
Acquisitions and dispositions
less cash and cash equivalents
acquired - (13) (4,139) (1,980)
-------------------------------------------------------------------------
Net cash from (used in)
investing activities (6,147) (7,121) (13,866) (12,459)
-------------------------------------------------------------------------
Effect of exchange rate changes
on cash and cash equivalents (117) (6) (171) (40)
-------------------------------------------------------------------------
Net (decrease) increase in
cash and cash equivalents (196) 61 (229) 346
Cash and cash equivalents at
beginning of period 1,986 1,958 2,019 1,673
-------------------------------------------------------------------------
Cash and cash equivalents at
end of period, represented by
cash and due from banks $ 1,790 $ 2,019 $ 1,790 $ 2,019
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Supplementary disclosure of
cash flow information
Amount of interest paid
during the period $ 2,618 $ 2,272 $ 10,947 $ 9,085
Amount of income taxes paid
during the period 325 290 1,099 968
-------------------------------------------------------------------------
Certain comparative amounts have been reclassified to conform to the
current period's presentation.
APPENDIX A
The Bank's operations and activities are organized around the following
businesses: Canadian Personal and Commercial Banking, Wealth Management, U.S.
Personal and Commercial Banking and Wholesale Banking. Results for these
segments for the three and twelve months ended October 31, 2007 and 2006 are
presented in the following tables:
Results by Business Segment
-------------------------------------------------------------------------
Canadian Personal U.S. Personal
(millions of and Commercial Wealth and Commercial
Canadian dollars) Banking Management Banking(1)
-------------------------------------------------------------------------
Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31
For the three
months ended 2007 2006 2007 2006 2007 2006
-------------------------------------------------------------------------
Net interest
income(3) $ 1,408 $ 1,295 $ 83 $ 69 $ 335 $ 337
Other income 744 653 498 435 140 141
-------------------------------------------------------------------------
Total revenue 2,152 1,948 581 504 475 478
Provision for
(reversal of)
credit losses(3) 176 132 - - 35 15
Non-interest
expenses 1,114 1,068 399 357 263 294
-------------------------------------------------------------------------
Income (loss) before
provision for
(benefit of)
income taxes 862 748 182 147 177 169
Provision for
(benefit of)
Income taxes 290 247 63 52 53 55
Non-controlling
interests - - - - - 51
Equity in net income
of associated
company, net of tax - - 75 53 - -
-------------------------------------------------------------------------
Net income (loss) $ 572 $ 501 $ 194 $ 148 $ 124 $ 63
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total assets
(billions of
Canadian dollars)
- balance sheet $ 152.1 $ 138.7 $ 14.9 $ 13.6 $ 58.8 $ 43.5
- securitized 44.6 43.2 - - - -
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(millions of Wholesale
Canadian dollars) Banking(2) Corporate(2) Total
-------------------------------------------------------------------------
Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31
-------------------------------------------------------------------------
For the three
months ended 2007 2006 2007 2006 2007 2006
-------------------------------------------------------------------------
Net interest
income(3) $ 310 $ 138 $ (328) $ (125) $ 1,808 $ 1,714
Other income 215 355 145 20 1,742 1,604
-------------------------------------------------------------------------
Total revenue 525 493 (183) (105) 3,550 3,318
Provision for
(reversal of)
credit losses(3) 4 13 (76) 10 139 170
Non-interest
expenses 274 293 191 199 2,241 2,211
-------------------------------------------------------------------------
Income (loss) before
provision for
(benefit of)
income taxes 247 187 (298) (314) 1,170 937
Provision for
(benefit of)
Income taxes 90 41 (343) (220) 153 175
Non-controlling
interests - - 8 (3) 8 48
Equity in net income
of associated
company, net of tax - - 10 (5) 85 48
-------------------------------------------------------------------------
Net income (loss) $ 157 $ 146 $ 47 $ (96) $ 1,094 $ 762
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Total assets
(billions of
Canadian dollars)
- balance sheet $ 177.2 $ 163.9 $ 19.1 $ 33.2 $ 422.1 $ 392.9
- securitized - - (16.3) (15.2) 28.3 28.0
-------------------------------------------------------------------------
-------------------------------------------------------------------------
Results by Business Segment
-------------------------------------------------------------------------
Canadian Personal U.S. Personal
(millions of and Commercial Wealth and Commercial
Canadian dollars) Banking Management Banking(1)
-------------------------------------------------------------------------
Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31
For the twelve
months ended 2007 2006 2007 2006 2007 2006
-------------------------------------------------------------------------
Net interest
income(3) $ 5,401 $ 4,879 $ 318 $ 377 $ 1,365 $ 1,290
Other income 2,848 2,573 1,995 1,883 583 490
-------------------------------------------------------------------------
Total revenue 8,249 7,452 2,313 2,260 1,948 1,780
Provision for
(reversal of)
credit losses(3) 608 413 - - 120 40
Non-interest
expenses 4,256 4,086 1,551 1,575 1,221 1,087
Dilution gain, net - - - - - -
-------------------------------------------------------------------------
Income (loss) before
provision for
(benefit of)
income taxes 3,385 2,953 762 685 607 653
Provision for
(benefit of)
Income taxes 1,132 987 261 242 196 222
Non-controlling
interests - - - - 91 195
Equity in net income
of associated
company, net of tax - - 261 147 - -
-------------------------------------------------------------------------
Net income (loss) $ 2,253 $ 1,966 $ 762 $ 590 $ 320 $ 236
-------------------------------------------------------------------------
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(millions of Wholesale
Canadian dollars) Banking(2) Corporate(2) Total
-------------------------------------------------------------------------
Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31 Oct. 31
-------------------------------------------------------------------------
For the twelve
months ended 2007 2006 2007 2006 2007 2006
-------------------------------------------------------------------------
Net interest
income(3) $ 875 $ 479 $(1,035) $ (654) $ 6,924 $ 6,371
Other income 1,619 1,792 312 83 7,357 6,821
-------------------------------------------------------------------------
Total revenue 2,494 2,271 (723) (571) 14,281 13,192
Provision for
(reversal of)
credit losses(3) 48 68 (131) (112) 645 409
Non-interest
expenses 1,261 1,312 686 755 8,975 8,815
Dilution gain, net - - - 1,559 - 1,559
-------------------------------------------------------------------------
Income (loss) before
provision for
(benefit of)
income taxes 1,185 891 (1,278) 345 4,661 5,527
Provision for
(benefit of)
Income taxes 361 262 (1,097) (839) 853 874
Non-controlling
interests - - 4 (11) 95 184
Equity in net income
of associated
company, net of tax - - 23 (13) 284 134
-------------------------------------------------------------------------
Net income (loss) $ 824 $ 629 $ (162) $ 1,182 $ 3,997 $ 4,603
-------------------------------------------------------------------------
-------------------------------------------------------------------------
(1) Commencing May 1, 2007, the results of TD Bank U.S.A. Inc.
(previously reported in the Corporate segment for the period from the
second quarter 2006 to the second quarter 2007 and in Wealth
Management segment prior to the second quarter of 2006) are included
in the U.S. Personal and Commercial Banking segment prospectively.
Prior periods have not been restated as the impact is not material.
(2) The taxable equivalent basis (TEB) increase to net interest income
and provision for income taxes reflected in the Wholesale Banking
segment results is reversed in the Corporate segment.
(3) The operating segment results are presented excluding the impact of
asset securitization programs, which are reclassified in the
Corporate segment.
SHAREHOLDER AND INVESTOR INFORMATION
-------------------------------------------------------------------------
Shareholder Services
For shareholder inquiries relating to: missing dividends, lost share
certificates, estate questions, address changes to the share register,
dividend bank account changes or the dividend re-investment program, please
contact our transfer agent: CIBC Mellon Trust Company, at P.O. Box 7010,
Adelaide Street Postal Station, Toronto, Ontario, M5C 2W9, or 1-800-387-0825
or 416-643-5500 or (www.cibcmellon.com or inquiries@cibcmellon.com).
For all other shareholder inquiries, please contact TD Shareholder
Relations at 416-944-6367 or 1-866-756-8936 or email: tdshinfo@td.com.
Internet website: www.td.com
Internet e-mail: customer.service@td.com
Designation of Eligible Dividends
The Toronto-Dominion Bank for the purposes of the Income Tax Act, Canada
and any similar provincial legislation advises that the dividend declared for
the quarter ending January 31, 2008 and all future dividends will be eligible
dividends unless indicated otherwise.
Annual Report on Form 40-F (U.S.)
A copy of the Bank's Annual Report on Form 40-F for fiscal 2007 will be
filed with the Securities and Exchange Commission later today and will be
available at www.td.com. You may obtain a printed copy of the Bank's Annual
Report on Form 40-F free of charge upon request to TD Shareholder Relations at
416-944-6367 or 1-866-756-8936 or e-mail: tdshinfo@td.com.
General Information
Contact Corporate & Public Affairs at (416) 982-8578
Products and services: Contact TD Canada Trust, 24 hours a day, seven
days a week:
1-866-567-8888
French: 1-866-233-2323
Cantonese/Mandarin: 1-800-328-3698
Telephone device for the deaf: 1-800-361-1180
On-line Investor Presentation: Full financial statements and a
presentation to investors and analysts (available on November 29) are
accessible from the home page of the TD Bank Financial Group website,
www.td.com/investor/calendar.jsp.
Quarterly Earnings Conference Call: Telephone replay of the
teleconference is available from November 30, 2007 to December 30, 2007.
Please call 1-877-289-8525 toll free, in Toronto (416) 640-1917, passcode
21251919 (pound key).
Webcast of Call: A live audio and video internet webcast of TD Bank
Financial Group's quarterly earnings conference call with investors and
analysts is scheduled on November 29, 2007 at 3:00 p.m. ET. The call is
webcast via the TD Bank Financial Group website at www.td.com. In addition,
recordings of the presentations are archived on TD's website and will be
available for replay for a period of one month.
Annual Meeting
Thursday April 3, 2008
Hyatt Regency Hotel Calgary
Calgary, Alberta
About TD Bank Financial Group
The Toronto-Dominion Bank and its subsidiaries are collectively known as
TD Bank Financial Group. TD Bank Financial Group serves more than 14 million
customers in four key businesses operating in a number of locations in key
financial centres around the globe: Canadian Personal and Commercial Banking,
including TD Canada Trust; Wealth Management, including TD Waterhouse and an
investment in TD Ameritrade; U.S. Personal and Commercial Banking through TD
Banknorth; and Wholesale Banking, including TD Securities. TD Bank Financial
Group also ranks among the world's leading on-line financial services firms,
with more than 4.5 million on-line customers. TD Bank Financial Group had
CDN$422 billion in assets as of October 31, 2007. The Toronto-Dominion Bank
trades on the Toronto and New York Stock Exchanges under the symbol "TD", as
well as on the Tokyo Stock Exchange.
For further information: Colleen Johnston, Executive Vice President and Chief Financial Officer, (416) 308-8279; Tim Thompson, Vice President, Investor Relations, (416) 982-6346; Simon Townsend, Senior Manager, Corporate Communications, (416) 944-7161
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