---------------------------- Jan. 31 Jan. 31 (millions of Canadian dollars) 2008 2007 ------------------------------------------------------------------------- CT defined benefit pension plan $1 $1 TD Banknorth defined benefit pension plans (1) 2 Supplemental employee retirement plans 8 8 ------------------------------------------------------------------------- Total 8 $11 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Principal Non-Pension Post-Retirement Benefit Plan Expense ------------------------------------------------------------------------- For the three months ended ---------------------------- Jan. 31 Jan. 31 (millions of Canadian dollars) 2008 2007 ------------------------------------------------------------------------- Elements of non- pension plan expense before adjustments to recognize the long-term nature of the cost: Service cost - benefits earned $3 $3 Interest cost on projected benefit obligation 6 5 Adjustments to recognize the long-term nature of plan cost: Difference between costs arising in the period and costs recognized in the period in respect of: Actuarial (gains) losses 1 1 Plan amendments (1) (1) ------------------------------------------------------------------------- Total $9 $8 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash Flows The Bank's contributions to its pension plans and its principal non- pension post-retirement benefit plans are as follows: Pension Plan Contributions ------------------------------------------------------------------------- For the three months ended ---------------------------- Jan. 31 Jan. 31 (millions of Canadian dollars) 2008 2007 ------------------------------------------------------------------------- Principal pension plan $19 $17 CT defined benefit pension plan - 1 TD Banknorth defined benefit pension plan - 47 Supplemental employee retirement plans 4 3 Non- pension post-retirement benefit plan 2 2 ------------------------------------------------------------------------- Total $25 $70 ------------------------------------------------------------------------- ------------------------------------------------------------------------- As at January 31, 2008, the Bank expects to contribute an additional $55 million to its principal pension plan, nil to its CT defined benefit pension plan, $40 million to its TD Banknorth defined benefit pension plan, $10 million to its supplemental employee retirement plans and $7 million to its non-pension post-retirement benefit plan by the end of the year. However, future contribution amounts may change upon the Bank's review of the current contribution levels during the year. Note 13: EARNINGS PER SHARE ------------------------------------------------------------------------- The Bank's basic and diluted earnings per share at January 31 are as follows: Basic and Diluted Earnings per Share ------------------------------------------------------------------------- For the three months ended ---------------------------- Jan. 31 Jan. 31 2008 2007 ------------------------------------------------------------------------- Basic Earnings per Share Net income available to common shares ($ millions) $962 $915 Average number of common shares outstanding (millions) 718.3 718.3 Basic earnings per share ($) $1.34 $1.27 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Diluted Earnings per Share Net income available to common shares ($ millions) $962 $915 Average number of common shares outstanding (millions) 718.3 718.3 Stock options potentially exercisable as determined under the treasury stock method(1) 6.3 6.6 ------------------------------------------------------------------------- Average number of common shares outstanding - diluted (millions) 724.6 724.9 ------------------------------------------------------------------------- Diluted earnings per share ($) $1.33 $1.26 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (1) For the three months ended January 31, 2008, the computation of diluted earnings per share excluded weighted-average options outstanding of 985 thousand with a weighted-average exercise price of $72.67 as the options' exercise prices were greater than the average market price of the Bank's common shares. For the three months ended January 31, 2007, all options outstanding were included in the computation of diluted earnings per share as the options' exercise prices were less than the average market price of the Bank's common shares. Note 14: SEGMENTED INFORMATION ------------------------------------------------------------------------- The Bank's operations and activities are organized around the following operating business segments: Canadian Personal and Commercial Banking, Wealth Management, U.S. Personal and Commercial Banking and Wholesale Banking. Results for these segments for the three months ended January 31 are presented in the following table: Results by Business Segment ------------------------------------------------------------------------- Canadian Personal U.S. Personal and (millions of and Commercial Wealth Commercial Canadian dollars) Banking Management Banking(1) ------------------------------------------------------------------------- For the three Jan. 31 Jan. 31 Jan. 31 Jan. 31 Jan. 31 Jan. 31 months ended 2008 2007 2008 2007 2008 2007 ------------------------------------------------------------------------- Net interest income $1,414 $1,307 $88 $77 $312 $341 Other income 733 703 482 474 140 145 ------------------------------------------------------------------------- Total revenue 2,147 2,010 570 551 452 486 Provision for (reversal of) credit losses 172 138 - - 26 17 Non-interest expenses 1,096 1,059 379 364 238 299 ------------------------------------------------------------------------- Income (loss) before provision for (benefit of) income taxes 879 813 191 187 188 170 Provision for (benefit of) income taxes 281 269 63 65 61 55 Non-controlling interests in subsidiaries, net of income taxes - - - - - 51 Equity in net income of an associated company, net of income taxes - - 88 64 - - ------------------------------------------------------------------------- Net income (loss) $598 $544 $216 $186 $127 $64 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total assets (billions of Canadian dollars) - balance sheet $154.8 $133.7 $14.0 $14.8 $60.3 $63.2 - securitized 43.2 46.7 - - - - ------------------------------------------------------------------------- ------------------------------------------------------------------------- ------------------------------------------------------------------------- (millions of Wholesale Canadian dollars) Banking(2) Corporate(2) Total For the three Jan. 31 Jan. 31 Jan. 31 Jan. 31 Jan. 31 Jan. 31 months ended 2008 2007 2008 2007 2008 2007 ------------------------------------------------------------------------- Net interest income $192 $203 $(218) $(257) $1,788 $1,671 Other income 416 432 45 80 1,816 1,834 ------------------------------------------------------------------------- Total revenue 608 635 (173) (177) 3,604 3,505 Provision for (reversal of) credit losses 56 24 1 (16) 255 163 Non-interest expenses 321 332 194 167 2,228 2,221 ------------------------------------------------------------------------- Income (loss) before provision for (benefit of) income taxes 231 279 (368) (328) 1,121 1,121 Provision for (benefit of) income taxes 68 82 (238) (253) 235 218 Non-controlling interests in subsidiaries, net of income taxes - - 8 (4) 8 47 Equity in net income of an associated company, net of income taxes - - 4 1 92 65 ------------------------------------------------------------------------- Net income (loss) $163 $197 $(134) $(70) $970 $921 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Total assets (billions of Canadian dollars) - balance sheet $184.6 $172.1 $21.5 $24.4 $435.2 $408.2 - securitized - - (15.3) (16.7) 27.9 30.0 ------------------------------------------------------------------------- ------------------------------------------------------------------------- (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. Note 15: DERIVATIVES ------------------------------------------------------------------------- Hedge accounting results were as follows: Hedge Accounting Results ------------------------------------------------------------------------- For the For the three three months months ended ended Jan. 31, Jan. 31, (millions of Canadian dollars) 2008 2007 ------------------------------------------------------------------------- Fair value hedges Gain (loss) arising from hedge ineffectiveness $6.9 $(0.4) ------------------------------------------------------------------------- ------------------------------------------------------------------------- Cash flow hedges (Loss) gain arising from hedge ineffectiveness $(0.3) $0.5 ------------------------------------------------------------------------- ------------------------------------------------------------------------- Portions of derivative gains (losses) that were excluded from the assessment of hedge effectiveness for fair value and cash flow hedging activities are included in the Consolidated Statement of Income and are not significant for the three months ended January 31, 2008. During the three months ended January 31, 2008, there were no firm commitments that no longer qualified as hedges. Over the next twelve months, the Bank expects an estimated $130 million in net gains reported in other comprehensive income as at January 31, 2008 to be reclassified to net income. The maximum length of time over which the Bank is hedging its exposure to the variability in future cash flows from anticipated transactions is 18 years. During the three months ended January 31, 2008, there were no forecasted transactions that failed to occur. Note 16: CONTINGENCIES ------------------------------------------------------------------------- The two principal legal actions regarding Enron to which the Bank is a party are the securities class action and the bankruptcy proceeding. In 2006, the Bank settled the bankruptcy court claims in this matter for approximately $145 million (US$130 million). As at January 31, 2008, the total contingent litigation reserve for Enron-related claims was approximately $415 million (US$413 million). The Bank and its subsidiaries are involved in various other legal actions in the ordinary course of business, many of which are loan-related. In management's opinion, the ultimate disposition of these actions, individually or in the aggregate, will not have a material adverse effect on the financial condition of the Bank. Note 17: RISK MANAGEMENT ------------------------------------------------------------------------- The risk management policies and procedures of the Bank are provided in the MD&A. The shaded sections of the risk management section, included on pages 17 to 22 of the MD&A, relating to credit, market and liquidity risks are an integral part of the Interim Consolidated Financial Statements. Note 18: RELATED-PARTY TRANSACTIONS ------------------------------------------------------------------------- During the three months ended January 31, 2008, the Bank purchased certain securities with a notional value of approximately $300 million at par from a fund that is managed by the Bank. The Bank immediately recognized a securities loss of $45 million that was recorded in the Wholesale Banking 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 reinvestment program, please contact our transfer agent: CIBC Mellon Trust Company, P.O. Box 7010, Adelaide Street Postal Station, Toronto, Ontario, M5C 2W9, 1-800-387-0825 or 416-643-5500 (http://www.cibcmellon.com/ or ). For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email . Internet website: http://www.td.com/ Internet e-mail: 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 April 30, 2008 and all future dividends will be eligible dividends unless indicated otherwise. General Information Contact Corporate & Public Affairs: (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 quarterly report and a presentation to investors and analysts (available on February 28, 2008) are accessible on the TD Bank Financial Group website, http://www.td.com/investor/index.jsp. Quarterly Earnings Conference Call: a replay of the teleconference is available from February 28, 2008 to March 27, 2008. Please call 1-877-289-8525 toll free, in Toronto (416) 640-1917, passcode 21262847 (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 February 28, 2008 at 3:00 p.m. ET. The call is webcast via the TD Bank Financial Group website at http://www.td.com/investor. In addition, recordings of the presentations are archived on TD's website and will be available for replay for a period of approximately one month. Annual Meeting Thursday, April 3, 2008 9:30 a.m. MDT Hyatt Regency 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$435 billion in assets, as of January 31, 2008. 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. DATASOURCE: TD Bank Financial Group CONTACT: PRNewswire - - 02/28/2008

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