This quarterly
earnings news release should be read in conjunction with the Bank's
unaudited Fourth Quarter 2017 consolidated financial results for
the year ended October 31, 2017, included in this Earnings News
Release and the audited 2017 Consolidated Financial Statements,
prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB), which is available on TD's website at
http://www.td.com/investor/. This analysis is dated November 29,
2017. 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 IFRS. Certain comparative amounts have been
reclassified to conform to the presentation adopted in the current
period. Additional information relating to the Bank is available on
the TD's website at http://www.td.com, as well as on SEDAR at
http://www.sedar.com and on the U.S. Securities and Exchange
Commission's (SEC) website at http://www.sec.gov (EDGAR filers
section).
Reported results conform to generally accepted accounting
principles (GAAP), in accordance with IFRS. Adjusted measures are
non-GAAP measures. Refer to the "How the Bank Reports" section of
the 2017 Management's Discussion and Analysis (MD&A) for an
explanation of reported and adjusted results.
|
FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth
quarter last year:
- Reported diluted earnings per share were $1.42, compared with $1.20.
- Adjusted diluted earnings per share were $1.36, compared with $1.22.
- Reported net income was $2,712
million, compared with $2,303
million.
- Adjusted net income was $2,603
million, compared with $2,347
million.
FULL YEAR FINANCIAL HIGHLIGHTS, compared with last
year:
- Reported diluted earnings per share were $5.50, compared with $4.67.
- Adjusted diluted earnings per share were $5.54, compared with $4.87.
- Reported net income was $10,517
million, compared with $8,936
million.
- Adjusted net income was $10,587
million, compared with $9,292
million.
FOURTH QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The
fourth quarter reported earnings figures included the following
items of note:
- Amortization of intangibles of $78
million ($59 million after tax
or 3 cents per share), compared with
$80 million ($60 million after tax or 3
cents per share) in the fourth quarter last year.
- Charges associated with the Scottrade transaction of
$46 million ($36 million after tax or 2
cents per share).
- Dilution gain on the Scottrade transaction of $204 million ($204
million after tax or 11 cents
per share).
TORONTO, Nov. 30, 2017 /CNW/ - TD Bank Group ("TD" or
the "Bank") today announced its financial results for the fourth
quarter ended October 31, 2017.
Fourth quarter reported earnings were $2.7
billion, up 18% on a reported basis and 11% on an adjusted
basis compared with the same quarter last year, reflecting growth
across both Canadian and U.S. Retail segments. Reported earnings
for the year were $10.5 billion, an
increase of 18% over last year and adjusted earnings were
$10.6 billion, an increase of
14%.
"We are pleased with our performance this quarter and our
overall earnings growth in 2017," said Bharat Masrani, Group
President and Chief Executive Officer. "Our businesses delivered
good revenue growth and market share gains, and we made significant
investments to transform and enhance the customer experience."
Canadian Retail
Canadian Retail net income was
$1,664 million, an increase of 11%
from the fourth quarter last year, reflecting good revenue growth
and continued focus on expense management. Our Canadian Retail
businesses delivered increased loan and deposit volumes this
quarter, which led to record real estate lending originations this
year, and we continue to maintain industry-leading chequing and
savings volumes. TD Direct Investing introduced two new
enhancements to the TD mobile banking App this quarter – push
notifications for price and volume alerts, and complex option
orders, further extending our Canadian industry leadership on the
mobile platform.
U.S. Retail
U.S. Retail reported net income was
$776 million (US$621 million) and adjusted net income was
$812 million (US$650 million), an increase of 11% (16% in
U.S. dollars) on a reported basis and 16% (21% in U.S.
dollars) on an adjusted basis, compared with the fourth quarter
last year.
The U.S. Retail Bank, which excludes the Bank's investment in TD
Ameritrade, reported net income of $671
million (US$538 million) and
adjusted net income of $687 million
(US$551 million), an increase of 10%
(16% in U.S. dollars) on a reported basis and 13% (18% in U.S.
dollars) on an adjusted basis, compared with the fourth quarter
last year. The U.S. Retail Bank recorded good revenue growth on
market share gains and increased loan and deposit volumes.
TD Ameritrade contributed $105
million (US$83 million) in
reported earnings to the segment and $125
million (US$99 million) in
adjusted earnings, a 13% increase (17% in U.S. dollars) on a
reported basis and 34% (39% in U.S. dollars) on an adjusted basis,
compared with the fourth quarter last year.
Wholesale Banking
Wholesale Banking net income was
$231 million. Revenue for the quarter
was $694 million, a decrease of
$47 million, or 6%, compared with the
fourth quarter last year reflecting lower trading-related revenue
due to weaker capital markets activity. Wholesale Banking continues
to invest in new product and service areas with the continued
expansion of our U.S. dollar businesses and the opening of our
Tokyo office.
Capital
TD's Common Equity Tier 1 Capital ratio on a
Basel III fully phased-in basis was 10.7%, compared to 11.0% last
quarter.
Conclusion
"I would like to thank our 85,000
colleagues for enriching the lives of our customers and
communities," said Masrani. "As we build the better bank of the
future, we remain focused on harnessing the power of our people,
business and brand, and delivering One TD to those we serve.
Current economic and market conditions bode well for us to deliver
strong financial results in 2018."
The foregoing contains forward-looking statements. Please
refer to the "Caution Regarding Forward-Looking
Statements".
Caution Regarding
Forward-Looking Statements
From time to time,
the Bank (as defined in this document) makes written and/or oral
forward-looking statements, including in this document, in other
filings with Canadian regulators or the United States (U.S.)
Securities and Exchange Commission (SEC), and in other
communications. In addition, representatives of the Bank may make
forward-looking statements orally to analysts, investors, the
media, and others. All such statements are made pursuant to the
"safe harbour" provisions of, and are intended to be
forward-looking statements under, applicable Canadian and U.S.
securities legislation, including the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements include,
but are not limited to, statements made in this document, the
Management's Discussion and Analysis ("2017 MD&A") under the
heading "Economic Summary and Outlook", for the Canadian Retail,
U.S. Retail and Wholesale Banking segments under headings "Business
Outlook and Focus for 2018", and for the Corporate segment, "Focus
for 2018", and in other statements regarding the Bank's objectives
and priorities for 2018 and beyond and strategies to achieve them,
the regulatory environment in which the Bank operates, and the
Bank's anticipated financial performance. Forward-looking
statements are typically identified by words such as "will",
"would", "should", "believe", "expect", "anticipate", "intend",
"estimate", "plan", "goal", "target", "may", and
"could".
By their very nature, these forward-looking statements require the
Bank to make assumptions and are subject to inherent risks and
uncertainties, general and specific. Especially in light of the
uncertainty related to the physical, financial, economic,
political, and regulatory environments, such risks and
uncertainties – many of which are beyond the Bank's control and the
effects of which can be difficult to predict – may cause actual
results to differ materially from the expectations expressed in the
forward-looking statements. Risk factors that could cause,
individually or in the aggregate, such differences include: credit,
market (including equity, commodity, foreign exchange, interest
rate, and credit spreads), liquidity, operational (including
technology and infrastructure), reputational, insurance, strategic,
regulatory, legal, environmental, capital adequacy, and other
risks. Examples of such risk factors include the general business
and economic conditions in the regions in which the Bank operates;
the ability of the Bank to execute on key priorities, including the
successful completion of acquisitions and dispositions, business
retention plans, and strategic plans and to attract, develop, and
retain key executives; disruptions in or attacks (including
cyber-attacks) on the Bank's information technology, internet,
network access, or other voice or data communications systems or
services; the evolution of various types of fraud or other criminal
behaviour to which the Bank is exposed; the failure of third
parties to comply with their obligations to the Bank or its
affiliates, including relating to the care and control of
information; the impact of new and changes to, or application of,
current laws and regulations, including without limitation tax
laws, risk-based capital guidelines and liquidity regulatory
guidance and the bank recapitalization "bail-in" regime; exposure
related to significant litigation and regulatory matters; increased
competition, including through internet and mobile banking and
non-traditional competitors; changes to the Bank's credit ratings;
changes in currency and interest rates (including the possibility
of negative interest rates); increased funding costs and market
volatility due to market illiquidity and competition for funding;
critical accounting estimates and changes to accounting standards,
policies, and methods used by the Bank; existing and potential
international debt crises; and the occurrence of natural and
unnatural catastrophic events and claims resulting from such
events. The Bank cautions that the preceding list is not exhaustive
of all possible risk factors and other factors could also adversely
affect the Bank's results. For more detailed information, please
refer to the "Risk Factors and Management" section of the 2017
MD&A, as may be updated in subsequently filed quarterly reports
to shareholders and news releases (as applicable) related to any
transactions or events discussed under the heading "Significant
Events" in the relevant MD&A, which applicable releases may be
found on www.td.com. All such factors should be considered
carefully, as well as other uncertainties and potential events, and
the inherent uncertainty of forward-looking statements, when making
decisions with respect to the Bank and the Bank cautions readers
not to place undue reliance on the Bank's forward-looking
statements.
Material economic assumptions underlying the forward-looking
statements contained in this document are set out in the 2017
MD&A under the headings "Economic Summary and Outlook", for the
Canadian Retail, U.S. Retail, and Wholesale Banking segments,
"Business Outlook and Focus for 2018", and for the Corporate
segment, "Focus for 2018", each as may be updated in subsequently
filed quarterly reports to shareholders.
Any forward-looking statements contained in this document represent
the views of management only as of the date hereof and are
presented for the purpose of assisting the Bank's shareholders and
analysts in understanding the Bank's financial position, objectives
and priorities, and anticipated financial performance as at and for
the periods ended on the dates presented, and may not be
appropriate for other purposes. 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, except as
required under applicable securities legislation.
|
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.
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TABLE 1: FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
|
For the twelve
months ended
|
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
October
31
|
|
October 31
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Results of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
revenue
|
$
|
9,270
|
|
$
|
9,286
|
|
$
|
8,745
|
|
$
|
36,149
|
|
$
|
34,315
|
|
Provision for credit
losses
|
|
578
|
|
|
505
|
|
|
548
|
|
|
2,216
|
|
|
2,330
|
|
Insurance claims and
related expenses
|
|
615
|
|
|
519
|
|
|
585
|
|
|
2,246
|
|
|
2,462
|
|
Non-interest
expenses
|
|
4,828
|
|
|
4,855
|
|
|
4,848
|
|
|
19,366
|
|
|
18,877
|
|
Net income –
reported
|
|
2,712
|
|
|
2,769
|
|
|
2,303
|
|
|
10,517
|
|
|
8,936
|
|
Net income –
adjusted1
|
|
2,603
|
|
|
2,865
|
|
|
2,347
|
|
|
10,587
|
|
|
9,292
|
|
Financial
position (billions of dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans net of
allowance for loan losses
|
$
|
612.6
|
|
$
|
592.4
|
|
$
|
585.7
|
|
$
|
612.6
|
|
$
|
585.7
|
|
Total
assets
|
|
1,279.0
|
|
|
1,202.4
|
|
|
1,177.0
|
|
|
1,279.0
|
|
|
1,177.0
|
|
Total
deposits
|
|
832.8
|
|
|
773.9
|
|
|
773.7
|
|
|
832.8
|
|
|
773.7
|
|
Total
equity
|
|
75.2
|
|
|
73.5
|
|
|
74.2
|
|
|
75.2
|
|
|
74.2
|
|
Total Common Equity
Tier 1 Capital risk-weighted assets2
|
|
435.8
|
|
|
408.8
|
|
|
405.8
|
|
|
435.8
|
|
|
405.8
|
|
Financial
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported
|
|
15.4
|
%
|
|
15.5
|
%
|
|
13.3
|
%
|
|
14.9
|
%
|
|
13.3
|
%
|
Return on common
equity – adjusted3
|
|
14.7
|
|
|
16.1
|
|
|
13.6
|
|
|
15.0
|
|
|
13.9
|
|
Efficiency ratio –
reported
|
|
52.1
|
|
|
52.3
|
|
|
55.4
|
|
|
53.6
|
|
|
55.0
|
|
Efficiency ratio –
adjusted1
|
|
52.3
|
|
|
51.4
|
|
|
54.8
|
|
|
53.1
|
|
|
53.9
|
|
Provision for credit
losses as a % of net average loans and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
acceptances4
|
|
0.39
|
|
|
0.33
|
|
|
0.37
|
|
|
0.37
|
|
|
0.41
|
|
Common share
information – reported (Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.42
|
|
$
|
1.46
|
|
$
|
1.20
|
|
$
|
5.51
|
|
$
|
4.68
|
|
|
Diluted
|
|
1.42
|
|
|
1.46
|
|
|
1.20
|
|
|
5.50
|
|
|
4.67
|
|
Dividends per
share
|
|
0.60
|
|
|
0.60
|
|
|
0.55
|
|
|
2.35
|
|
|
2.16
|
|
Book value per
share
|
|
37.76
|
|
|
36.32
|
|
|
36.71
|
|
|
37.76
|
|
|
36.71
|
|
Closing share
price5
|
|
73.34
|
|
|
64.27
|
|
|
60.86
|
|
|
73.34
|
|
|
60.86
|
|
Shares outstanding
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
basic
|
|
1,845.8
|
|
|
1,846.5
|
|
|
1,855.4
|
|
|
1,850.6
|
|
|
1,853.4
|
|
|
Average
diluted
|
|
1,849.9
|
|
|
1,850.2
|
|
|
1,858.8
|
|
|
1,854.8
|
|
|
1,856.8
|
|
|
End of
period
|
|
1,839.6
|
|
|
1,848.6
|
|
|
1,857.2
|
|
|
1,839.6
|
|
|
1,857.2
|
|
Market capitalization
(billions of Canadian dollars)
|
$
|
134.9
|
|
$
|
118.8
|
|
$
|
113.0
|
|
$
|
134.9
|
|
$
|
113.0
|
|
Dividend
yield6,7
|
|
3.5
|
%
|
|
3.7
|
%
|
|
3.8
|
%
|
|
3.6
|
%
|
|
3.9
|
%
|
Dividend payout
ratio
|
|
42.1
|
|
|
41.1
|
|
|
45.7
|
|
|
42.6
|
|
|
46.1
|
|
Price-earnings
ratio
|
|
13.3
|
|
|
12.1
|
|
|
13.0
|
|
|
13.3
|
|
|
13.0
|
|
Total shareholder
return (1 year)8
|
|
24.8
|
|
|
17.1
|
|
|
17.9
|
|
|
24.8
|
|
|
17.9
|
|
Common share
information – adjusted (Canadian
dollars)1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.36
|
|
$
|
1.51
|
|
$
|
1.23
|
|
$
|
5.55
|
|
$
|
4.88
|
|
|
Diluted
|
|
1.36
|
|
|
1.51
|
|
|
1.22
|
|
|
5.54
|
|
|
4.87
|
|
Dividend payout
ratio
|
|
43.9
|
%
|
|
39.7
|
%
|
|
44.8
|
%
|
|
42.3
|
%
|
|
44.3
|
%
|
Price-earnings
ratio
|
|
13.2
|
|
|
11.9
|
|
|
12.5
|
|
|
13.2
|
|
|
12.5
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Capital ratio2
|
|
10.7
|
%
|
|
11.0
|
%
|
|
10.4
|
%
|
|
10.7
|
%
|
|
10.4
|
%
|
Tier 1 Capital
ratio2
|
|
12.3
|
|
|
12.8
|
|
|
12.2
|
|
|
12.3
|
|
|
12.2
|
|
Total Capital
ratio2
|
|
14.9
|
|
|
15.6
|
|
|
15.2
|
|
|
14.9
|
|
|
15.2
|
|
Leverage
ratio
|
|
3.9
|
|
|
4.1
|
|
|
4.0
|
|
|
3.9
|
|
|
4.0
|
|
1
|
Adjusted measures are
non-GAAP measures. Refer to the "How the Bank Reports" section of
this document for an explanation of reported and adjusted
results.
|
2
|
Each capital ratio
has its own risk-weighted assets (RWA) measure due to the Office of
the Superintendent of Financial Institutions Canada (OSFI)
prescribed scalar for inclusion of the Credit Valuation Adjustment
(CVA). For fiscal 2016, the scalars for inclusion of CVA for Common
Equity Tier 1 (CET1), Tier 1, and Total Capital RWA were 64%, 71%,
and 77%, respectively. For fiscal 2017, the scalars are 72%, 77%,
and 81%, respectively. As the Bank is constrained by the Basel 1
regulatory floor, the RWA as it relates to the regulatory
floor is calculated based on the Basel 1 risk weights which
are the same for all capital ratios.
|
3
|
Adjusted return on
common equity is a non-GAAP financial measure. Refer to the "Return
on Common Equity" section of this document for an
explanation.
|
4
|
Excludes acquired
credit-impaired (ACI) loans and debt securities classified as
loans. For additional information on ACI loans, refer to the
"Credit Portfolio Quality" section of the 2017 MD&A and
Note 8 of the 2017 Consolidated Financial Statements. For
additional information on debt securities classified as loans,
refer to the "Exposure to Non-Agency Collateralized Mortgage
Obligations" discussion and tables in the "Credit Portfolio
Quality" section of the 2017 MD&A and Note 8 of the 2017
Consolidated Financial Statements.
|
5
|
Toronto Stock
Exchange (TSX) closing market price.
|
6
|
Certain comparative
amounts have been recast to conform with the presentation adopted
in the current period.
|
7
|
Dividend yield is
calculated as the dividend per common share divided by the daily
average closing stock price in the relevant period. Dividend
per common share is derived as follows: a) for the quarter –
by annualizing the dividend per common share paid during the
quarter, and b) for the full year – dividend per common share paid
during the year.
|
8
|
Total shareholder
return (TSR) is calculated based on share price movement and
dividends reinvested over a trailing one year period.
|
HOW WE PERFORMED
How the Bank Reports
The Bank prepares its
Consolidated Financial Statements in accordance with IFRS, the
current GAAP, and refers to results prepared in accordance with
IFRS 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 the Bank's overall performance. To
arrive at adjusted results, the Bank removes "items of note", from
reported results. The items of note relate to items which
management does not believe are indicative of underlying business
performance. The Bank believes that adjusted results provide the
reader with a better understanding of how management views the
Bank's performance. The items of note are disclosed in Table 3. As
explained, adjusted results differ from reported results determined
in accordance with IFRS. Adjusted results, items of note, and
related terms used in this document are not defined terms under
IFRS and, therefore, may not be comparable to similar terms used by
other issuers.
|
|
|
|
|
|
|
|
|
|
|
TABLE 2: OPERATING
RESULTS – Reported
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
July
31
|
October
31
|
October
31
|
October
31
|
|
|
2017
|
2017
|
2016
|
2017
|
2016
|
Net interest
income
|
$
|
5,330
|
$
|
5,267
|
$
|
5,072
|
$
|
20,847
|
$
|
19,923
|
Non-interest
income
|
|
3,940
|
|
4,019
|
|
3,673
|
|
15,302
|
|
14,392
|
Total
revenue
|
|
9,270
|
|
9,286
|
|
8,745
|
|
36,149
|
|
34,315
|
Provision for credit
losses
|
|
578
|
|
505
|
|
548
|
|
2,216
|
|
2,330
|
Insurance claims and
related expenses
|
|
615
|
|
519
|
|
585
|
|
2,246
|
|
2,462
|
Non-interest
expenses
|
|
4,828
|
|
4,855
|
|
4,848
|
|
19,366
|
|
18,877
|
Income before
income taxes and equity in net income of an
|
|
|
|
|
|
|
|
|
|
|
|
investment in TD
Ameritrade
|
|
3,249
|
|
3,407
|
|
2,764
|
|
12,321
|
|
10,646
|
Provision for income
taxes
|
|
640
|
|
760
|
|
555
|
|
2,253
|
|
2,143
|
Equity in net income
of an investment in TD Ameritrade
|
|
103
|
|
122
|
|
94
|
|
449
|
|
433
|
Net income –
reported
|
|
2,712
|
|
2,769
|
|
2,303
|
|
10,517
|
|
8,936
|
Preferred
dividends
|
|
50
|
|
47
|
|
43
|
|
193
|
|
141
|
Net income
available to common shareholders and
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests in subsidiaries
|
$
|
2,662
|
$
|
2,722
|
$
|
2,260
|
$
|
10,324
|
$
|
8,795
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Common
shareholders
|
$
|
2,627
|
$
|
2,693
|
$
|
2,231
|
$
|
10,203
|
$
|
8,680
|
Non-controlling
interests
|
|
35
|
|
29
|
|
29
|
|
121
|
|
115
|
The following table provides a reconciliation between the Bank's
adjusted and reported results.
|
|
|
|
|
TABLE 3: NON-GAAP
FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net
Income
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
July
31
|
October
31
|
October
31
|
October
31
|
|
2017
|
2017
|
2016
|
2017
|
2016
|
Operating results
– adjusted
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
5,330
|
$
|
5,267
|
$
|
5,072
|
$
|
20,847
|
$
|
19,923
|
Non-interest
income1
|
|
3,736
|
|
4,061
|
|
3,654
|
|
15,099
|
|
14,385
|
Total
revenue
|
|
9,066
|
|
9,328
|
|
8,726
|
|
35,946
|
|
34,308
|
Provision for credit
losses
|
|
578
|
|
505
|
|
548
|
|
2,216
|
|
2,330
|
Insurance claims and
related expenses
|
|
615
|
|
519
|
|
585
|
|
2,246
|
|
2,462
|
Non-interest
expenses2
|
|
4,739
|
|
4,797
|
|
4,784
|
|
19,092
|
|
18,496
|
Income before income
taxes and equity in net income of an
|
|
|
|
|
|
|
|
|
|
|
|
investment in TD
Ameritrade
|
|
3,134
|
|
3,507
|
|
2,809
|
|
12,392
|
|
11,020
|
Provision for income
taxes
|
|
669
|
|
780
|
|
572
|
|
2,336
|
|
2,226
|
Equity in net income
of an investment in TD Ameritrade3
|
|
138
|
|
138
|
|
110
|
|
531
|
|
498
|
Net income –
adjusted
|
|
2,603
|
|
2,865
|
|
2,347
|
|
10,587
|
|
9,292
|
Preferred
dividends
|
|
50
|
|
47
|
|
43
|
|
193
|
|
141
|
Net income
available to common shareholders and
|
|
|
|
|
|
|
|
|
|
|
|
non-controlling
interests in subsidiaries – adjusted
|
|
2,553
|
|
2,818
|
|
2,304
|
|
10,394
|
|
9,151
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Non-controlling
interests in subsidiaries, net of income taxes
|
|
35
|
|
29
|
|
29
|
|
121
|
|
115
|
Net income
available to common shareholders – adjusted
|
|
2,518
|
|
2,789
|
|
2,275
|
|
10,273
|
|
9,036
|
Pre-tax
adjustments of items of note
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles4
|
|
(78)
|
|
(74)
|
|
(80)
|
|
(310)
|
|
(335)
|
Charges associated
with the Scottrade transaction5
|
|
(46)
|
|
–
|
|
–
|
|
(46)
|
|
–
|
Dilution gain on the
Scottrade transaction6
|
|
204
|
|
–
|
|
–
|
|
204
|
|
–
|
Loss on sale of TD
Direct Investing business in Europe7
|
|
–
|
|
(42)
|
|
–
|
|
(42)
|
|
–
|
Fair value of
derivatives hedging the reclassified
available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
securities
portfolio8
|
|
–
|
|
–
|
|
19
|
|
41
|
|
7
|
Impairment of
goodwill, non-financial assets, and other
charges9
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(111)
|
Provision for
(recovery of) income taxes for items of note
|
|
|
|
|
|
|
|
|
|
|
Amortization of
intangibles
|
|
(19)
|
|
(18)
|
|
(20)
|
|
(78)
|
|
(89)
|
Charges associated
with the Scottrade transaction
|
|
(10)
|
|
–
|
|
–
|
|
(10)
|
|
–
|
Dilution gain on the
Scottrade transaction
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
Loss on sale of TD
Direct Investing business in Europe
|
|
–
|
|
(2)
|
|
–
|
|
(2)
|
|
–
|
Fair value of
derivatives hedging the reclassified
available-for-sale
|
|
|
|
|
|
|
|
|
|
|
|
securities
portfolio
|
|
–
|
|
–
|
|
3
|
|
7
|
|
1
|
Impairment of
goodwill, non-financial assets, and other charges
|
|
–
|
|
–
|
|
–
|
|
–
|
|
5
|
Total adjustments
for items of note
|
|
109
|
|
(96)
|
|
(44)
|
|
(70)
|
|
(356)
|
Net income
available to common shareholders – reported
|
$
|
2,627
|
$
|
2,693
|
$
|
2,231
|
$
|
10,203
|
$
|
8,680
|
1
|
Adjusted non-interest
income excludes the following items of note: Dilution gain on the
Scottrade transaction, as explained in footnote 6 - fourth quarter
2017 – $204 million. Loss on sale of the Direct Investing business
in Europe, as explained in footnote 7 ‑ third quarter 2017 –
$42 million. Fair value of derivatives hedging the reclassified
available-for-sale securities portfolio, as explained in footnote 8
- first quarter 2017 – $41 million gain, fourth quarter 2016 –
$19 million gain, second quarter 2016 – $58 million loss,
and first quarter 2016 – $46 million gain. These amounts were
reported in the Corporate segment.
|
2
|
Adjusted non-interest
expenses excludes the following items of note: Amortization of
intangibles, as explained in footnote 4 - fourth quarter 2017 –
$63 million, third quarter 2017 – $58 million, second
quarter 2017 – $63 million, first quarter 2017 –
$64 million, fourth quarter 2016 – $64 million, third
quarter 2016 – $63 million, second quarter 2016 – $69 million,
and first quarter 2016 – $74 million, reported in the
Corporate segment. Charges associated with the Bank's acquisition
of Scottrade Bank, as explained in footnote 5 - fourth quarter 2017
– $26 million, reported in the U.S. Retail segment. Impairment of
goodwill, certain intangibles, other non-financial assets, and
other charges, as further explained in footnote 9 - second quarter
2016 – $111 million, reported in the Corporate
segment.
|
3
|
Adjusted equity in
net income of an investment in TD Ameritrade excludes the following
items of note: Amortization of intangibles, as explained in
footnote 4 - fourth quarter 2017 – $15 million, third quarter
2017 – $16 million, second quarter 2017 – $15 million, first
quarter 2017 – $16 million, fourth quarter 2016 – $16 million,
third quarter 2016 – $16 million, second quarter 2016 –
$17 million, and first quarter 2016 – $16 million. These
amounts were reported in the Corporate segment. The Bank's share of
costs associated with TD Ameritrade's acquisition of Scottrade
Financial Services Inc. (Scottrade), as explained in footnote 5 -
fourth quarter 2017 – $20 million. This amount was reported in the
U.S. Retail segment.
|
4
|
Amortization of
intangibles relates to intangibles acquired as a result of asset
acquisitions and business combinations, including the after tax
amounts for amortization of intangibles relating to the equity in
net income of the investment in TD Ameritrade. Although the
amortization of software and asset servicing rights are recorded in
amortization of intangibles, they are not included for purposes of
the items of note.
|
5
|
On September 18,
2017, the Bank acquired Scottrade Bank and TD Ameritrade acquired
Scottrade. Scottrade Bank merged with TD Bank, N.A. The Bank and
TD Ameritrade incurred acquisition related charges including
employee severance, contract termination fees, direct transaction
costs, and other one-time charges. These amounts have been recorded
as an adjustment to net income including $26 million ($16 million
after tax) relating to the charges associated with the Bank's
acquisition of Scottrade Bank and $20 million after tax amounts
relating to the Bank's share of charges associated with TD
Ameritrade's acquisition of Scottrade reported in the U.S. Retail
segment.
|
6
|
In connection with TD
Ameritrade's acquisition of Scottrade on September 18, 2017, TD
Ameritrade issued 38.8 million shares, of which the Bank purchased
11.1 million pursuant to its pre-emptive rights (together with the
Bank's acquisition of Scottrade Bank and TD Ameritrade's
acquisition of Scottrade, the "Scottrade transaction"). As a result
of the share issuances, the Bank's common stock ownership
percentage in TD Ameritrade decreased and the Bank realized a
dilution gain of $204 million reported in the Corporate
segment.
|
7
|
On June 2, 2017, the
Bank completed the sale of its Direct Investing business in Europe
to Interactive Investor PLC. A loss of $40 million after tax, which
remains subject to the final purchase price adjustment, was
recorded in the Corporate segment in other income (loss). The loss
is not considered to be in the normal course of business for the
Bank.
|
8
|
The Bank changed its
trading strategy with respect to certain trading debt securities
and reclassified these securities from trading to the
available-for-sale category effective August 1, 2008.
These debt securities are economically hedged, primarily with
credit default swap and interest rate swap contracts which are
recorded on a fair value basis with changes in fair value recorded
in the period's earnings. As a result the derivatives were
accounted for on an accrual basis in Wholesale Banking and the
gains and losses related to the derivatives in excess of the
accrued amounts were reported in the Corporate segment. Adjusted
results of the Bank in prior periods exclude the gains and losses
of the derivatives in excess of the accrued amount. Effective
February 1, 2017, the total gains and losses as a result of changes
in fair value of these derivatives are recorded in Wholesale
Banking.
|
9
|
In the second quarter
of 2016, the Bank recorded impairment losses on goodwill, certain
intangibles, other non-financial assets and deferred tax assets, as
well as other charges relating to the Direct Investing business in
Europe that had been experiencing continued losses. These amounts
are reported in the Corporate segment.
|
|
TABLE 4:
RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE
(EPS)1
|
(Canadian
dollars)
|
|
For the three
months ended
|
For the twelve
months ended
|
|
October
31
|
July
31
|
October
31
|
October
31
|
October
31
|
|
2017
|
2017
|
2016
|
2017
|
2016
|
Basic earnings per
share – reported
|
$
|
1.42
|
$
|
1.46
|
$
|
1.20
|
$
|
5.51
|
$
|
4.68
|
Adjustments for items
of note2
|
|
(0.06)
|
|
0.05
|
|
0.03
|
|
0.04
|
|
0.20
|
Basic earnings per
share – adjusted
|
$
|
1.36
|
$
|
1.51
|
$
|
1.23
|
$
|
5.55
|
$
|
4.88
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share – reported
|
$
|
1.42
|
$
|
1.46
|
$
|
1.20
|
$
|
5.50
|
$
|
4.67
|
Adjustments for items
of note2
|
|
(0.06)
|
|
0.05
|
|
0.02
|
|
0.04
|
|
0.20
|
Diluted earnings
per share – adjusted
|
$
|
1.36
|
$
|
1.51
|
$
|
1.22
|
$
|
5.54
|
$
|
4.87
|
1
|
EPS is computed by
dividing net income available to common shareholders by the
weighted-average number of shares outstanding during the
period.
|
2
|
For explanations of
items of note, refer to the "Non-GAAP Financial Measures –
Reconciliation of Adjusted to Reported Net Income" table in the
"How We Performed" section of this document.
|
|
|
TABLE 5: NON-GAAP
FINANCIAL MEASURES – Reconciliation of Reported to Adjusted
Provision for Income Taxes
|
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
|
For the twelve
months ended
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
October
31
|
|
October
31
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Provision for
income taxes – reported
|
$
|
640
|
|
$
|
760
|
|
$
|
555
|
|
$
|
2,253
|
|
$
|
2,143
|
|
Total adjustments
for items of note1
|
|
29
|
|
|
20
|
|
|
17
|
|
|
83
|
|
|
83
|
|
Provision for
income taxes – adjusted
|
$
|
669
|
|
$
|
780
|
|
$
|
572
|
|
$
|
2,336
|
|
$
|
2,226
|
|
Effective income
tax rate – reported
|
|
19.7
|
%
|
|
22.3
|
%
|
|
20.1
|
%
|
|
18.3
|
%
|
|
20.1
|
%
|
Effective income
tax rate – adjusted2,3
|
|
21.3
|
|
|
22.2
|
|
|
20.4
|
|
|
18.9
|
|
|
20.2
|
|
1
|
For explanations of
items of note, refer to the "Non-GAAP Financial Measures –
Reconciliation of Adjusted to Reported Net Income" table in the
"How We Performed" section of this document.
|
2
|
The tax effect for
each item of note is calculated using the statutory income tax rate
of the applicable legal entity.
|
3
|
Adjusted effective
income tax rate is the adjusted provision for income taxes before
other taxes as a percentage of adjusted net income before
taxes.
|
RETURN ON COMMON EQUITY
The Bank's methodology for
allocating capital to its business segments is aligned with the
common equity capital requirements under Basel III. The capital
allocated to the business segments is based on 9% Common Equity
Tier 1 (CET1) Capital.
Adjusted return on common equity (ROE) is adjusted net income
available to common shareholders as a percentage of average common
equity.
Adjusted ROE is a non-GAAP financial measure and is not a
defined term under IFRS. Readers are cautioned that earnings and
other measures adjusted to a basis other than IFRS do not have
standardized meanings under IFRS and, therefore, may not be
comparable to similar terms used by other issuers.
|
|
|
|
|
|
|
|
TABLE 6: RETURN ON
COMMON EQUITY
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
For the twelve
months ended
|
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
October
31
|
|
October
31
|
|
|
|
2017
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
Average common
equity
|
$
|
67,859
|
|
$
|
68,777
|
|
$
|
66,769
|
|
$
|
68,349
|
|
$
|
65,121
|
|
Net income
available to common shareholders – reported
|
|
2,627
|
|
|
2,693
|
|
|
2,231
|
|
|
10,203
|
|
|
8,680
|
|
Items of note, net of
income taxes1
|
|
(109)
|
|
|
96
|
|
|
44
|
|
|
70
|
|
|
356
|
|
Net income
available to common shareholders – adjusted
|
|
2,518
|
|
|
2,789
|
|
|
2,275
|
|
|
10,273
|
|
|
9,036
|
|
Return on common
equity – reported
|
|
15.4
|
%
|
|
15.5
|
%
|
|
13.3
|
%
|
|
14.9
|
%
|
|
13.3
|
%
|
Return on common
equity – adjusted
|
|
14.7
|
|
|
16.1
|
|
|
13.6
|
|
|
15.0
|
|
|
13.9
|
|
1
|
For explanations of
items of note, refer to the "Non-GAAP Financial Measures –
Reconciliation of Adjusted to Reported Net Income" table in the
"How We Performed" section of this document.
|
SIGNIFICANT EVENTS IN 2017
On September 18, 2017, the Bank
acquired 100% of the outstanding equity of Scottrade Bank, a
federal savings bank wholly-owned by Scottrade, for cash
consideration of approximately $1.6
billion (US$1.4 billion).
Scottrade Bank merged with TD Bank, N.A. In connection with the
acquisition, TD has agreed to accept sweep deposits from Scottrade
clients, expanding the Bank's sweep deposit activities. The
acquisition is consistent with the Bank's U.S. strategy and is
accounted for as a business combination under the purchase
method.
The acquisition contributed $15
billion of investment securities, $5
billion of loans, and $19
billion of deposit liabilities. Goodwill of $34 million reflects the excess of the
consideration paid over the fair value of the identifiable net
assets acquired. The results of the acquired business have been
consolidated from the date of close and are included in the U.S.
Retail segment.
TD Ameritrade also concurrently completed its acquisition of
Scottrade on September 18, 2017 for
cash and TD Ameritrade shares. Pursuant to its pre-emptive rights,
the Bank purchased 11.1 million new common shares in TD Ameritrade.
As a result of the share issuance, the Bank's common stock
ownership percentage in TD Ameritrade decreased and the Bank
realized a dilution gain of $204
million.
HOW OUR BUSINESSES PERFORMED
For management reporting purposes, the Bank reports its results
under three key business segments: Canadian Retail, which includes
the results of the Canadian personal and commercial banking,
wealth, and insurance businesses; U.S. Retail, which includes the
results of the U.S. personal and business banking operations,
wealth management services, and the Bank's investment in TD
Ameritrade; 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 businesses in that
segment. Where applicable, the Bank measures and evaluates the
performance of each segment based on adjusted results and ROE, and
for those segments the Bank indicates that the measure is adjusted.
For further details, refer to the "How the Bank Reports" section of
this document, the "Business Focus" section in the 2017 MD&A,
and Note 29 of the Bank's Consolidated Financial
Statements for the year ended October 31, 2017. For
information concerning the Bank's measure of adjusted return on
average common equity, which is a non-GAAP financial measure, refer
to the "How We Performed" section of this document.
Net interest income within Wholesale Banking is calculated 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 increase to net interest income and
provision for income taxes reflected in Wholesale Banking's results
are reversed in the Corporate segment. The TEB adjustment for the
quarter was $26 million, compared
with $86 million in the fourth quarter last year, and
$59 million in the prior quarter.
|
|
|
TABLE 7: CANADIAN
RETAIL
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
|
For the three
months ended
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
|
2017
|
|
2017
|
|
2016
|
|
Net interest
income
|
$
|
2,773
|
|
$
|
2,692
|
|
$
|
2,551
|
|
Non-interest
income
|
|
2,625
|
|
|
2,637
|
|
|
2,599
|
|
Total
revenue
|
|
5,398
|
|
|
5,329
|
|
|
5,150
|
|
Provision for credit
losses
|
|
244
|
|
|
238
|
|
|
263
|
|
Insurance claims and
related expenses
|
|
615
|
|
|
519
|
|
|
585
|
|
Non-interest expenses
|
|
2,272
|
|
|
2,219
|
|
|
2,250
|
|
Provision for
(recovery of) income taxes
|
|
603
|
|
|
628
|
|
|
550
|
|
Net income
|
$
|
1,664
|
|
$
|
1,725
|
|
$
|
1,502
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity1
|
|
45.7
|
%
|
|
46.9
|
%
|
|
41.5
|
%
|
Margin on average
earning assets (including securitized assets)
|
|
2.86
|
|
|
2.84
|
|
|
2.78
|
|
Efficiency
ratio
|
|
42.1
|
|
|
41.6
|
|
|
43.7
|
|
Assets under
administration (billions of Canadian
dollars)2
|
$
|
387
|
|
$
|
370
|
|
$
|
379
|
|
Assets under
management (billions of Canadian
dollars)2
|
|
283
|
|
|
272
|
|
|
271
|
|
Number of Canadian
retail branches
|
|
1,128
|
|
|
1,138
|
|
|
1,156
|
|
Average number of
full-time equivalent staff
|
|
38,222
|
|
|
38,736
|
|
|
39,149
|
|
1
|
Capital allocated to
the business segment was based on 9% CET1 Capital in fiscal 2017
and 2016.
|
2
|
Effective the first
quarter of 2017, the Bank changed the framework for classifying
assets under administration (AUA) and assets under management
(AUM). The primary change is to recognize mutual funds sold through
the branch network as part of AUA. In addition, AUA has been
updated to reflect a change in the measurement of certain business
activities within Canadian Retail. Comparative amounts have been
recast to conform with the revised presentation.
|
Quarterly comparison – Q4 2017 vs. Q4 2016
Canadian Retail net income for the quarter was $1,664 million, an increase of $162 million,
or 11%, compared with the fourth quarter last year. The increase in
earnings reflects revenue growth and lower PCL, partially offset by
higher insurance claims and higher non-interest expenses. The
annualized ROE for the quarter was 45.7%, compared with 41.5% in
the fourth quarter last year.
Canadian Retail revenue is derived from the Canadian personal
and commercial banking, wealth, and insurance businesses. Revenue
for the quarter was $5,398 million, an increase of
$248 million, or 5%, compared with the fourth quarter last
year.
Net interest income increased $222 million, or 9%,
reflecting loan and deposit volume growth, and higher margins.
Average loan volumes increased $19 billion, or 5%, compared
with the fourth quarter last year, reflecting 4% growth in personal
loan volumes and 9% growth in business loan volumes. Average
deposit volumes increased $23 billion, or 8%, compared with
the fourth quarter last year, reflecting 6% growth in personal
deposit volumes, 12% growth in business deposit volumes, and 4%
growth in wealth deposit volumes. Margin on average earning assets
was 2.86%, an 8 basis points (bps) increase, reflecting recent
increases in interest rates and favourable balance sheet mix.
Non-interest income increased $26
million, or 1%, reflecting higher fee-based revenue in the
banking businesses and wealth asset growth, partially offset by
higher liabilities associated with increased customer engagement in
credit card loyalty programs.
AUA were $387 billion as at October
31, 2017, an increase of $8 billion, or 2%, and AUM
were $283 billion as at October 31, 2017, an increase of
$12 billion, or 4%, compared with the fourth quarter of last
year, both reflecting new asset growth and increases in market
value.
PCL for the quarter was $244 million, a decrease of
$19 million, or 7%, compared with the fourth quarter last
year. Personal banking PCL was $240 million, a decrease of
$5 million, or 2%. Business banking PCL was $4 million, a
decrease of $14 million. Annualized PCL as a percentage of
credit volume was 0.25%, or a decrease of 3 bps. Net impaired
loans were $555 million, a decrease of $150 million, or
21%. Net impaired loans as a percentage of total loans were 0.14%,
compared with 0.19% as at October 31, 2016.
Insurance claims and related expenses for the quarter were
$615 million, an increase of $30 million, or 5%, compared
with the fourth quarter last year, reflecting higher current year
claims, partially offset by less weather-related events and more
favourable prior years' claims development.
Non-interest expenses for the quarter were $2,272 million, an increase of
$22 million, or 1%, compared with the fourth quarter last
year. The increase reflects higher employee-related expenses
including revenue-based variable expenses in the wealth business,
and higher investment in technology initiatives, partially offset
by productivity savings and the sale of the Direct Investing
business in Europe.
The efficiency ratio for the quarter was 42.1%, compared with
43.7% in the fourth quarter last year.
Quarterly comparison – Q4 2017 vs. Q3 2017
Canadian Retail net income for the quarter decreased
$61 million, or 4%, compared with the prior quarter. The
decrease in earnings reflects higher insurance claims, non-interest
expenses, and PCL, partially offset by higher revenue. The
annualized ROE for the quarter was 45.7%, compared with 46.9% in
the prior quarter.
Revenue increased $69 million, or 1%, compared with the
prior quarter. Net interest income increased $81 million, or
3%, reflecting loan and deposit volume growth, and higher margins.
Average loan volumes increased $8 billion, or 2%, compared
with the prior quarter, reflecting 2% growth in personal loan
volumes and 2% growth in business loan volumes. Average deposit
volumes increased $3 billion, or 1%, compared with the prior
quarter, reflecting 1% growth in personal deposit volumes and
2% growth in business deposit volumes, partially offset by a
2% decrease in wealth deposit volumes. Margin on average earning
assets was 2.86%, or a 2 bps increase, primarily as a result
of the recent increases in interest rates in the quarter.
Non-interest income decreased $12 million, reflecting lower
fee-based revenue in the banking businesses and higher liabilities
associated with increased customer engagement in credit card
loyalty programs, partially offset by changes in the fair value of
investments supporting claims liabilities which resulted in a
similar increase to insurance claims.
AUA were $387 billion as at October
31, 2017, an increase of $17 billion, or 5%, and AUM
were $283 billion as at October 31, 2017, an increase of
$11 billion, or 4%, compared with the third quarter of this
year, both reflecting new asset growth and increases in market
value.
PCL for the quarter increased $6
million, or 3%, compared with the prior quarter. Personal
banking PCL for the quarter increased $13 million, or 6%,
reflecting higher provisions in the credit cards portfolio in the
current quarter. Business banking PCL decreased $7 million.
Annualized PCL as a percentage of credit volume was 0.25%, or flat.
Net impaired loans decreased $16 million, or 3%. Net impaired
loans as a percentage of total loans were 0.14%, compared with
0.15% as at July 31, 2017.
Insurance claims and related expenses for the quarter increased
$96 million, or 18%, compared with the prior quarter
reflecting higher current year claims, changes in the fair value of
investments supporting claims liabilities which resulted in a
similar increase in non-interest income, partially offset by less
weather-related events and more favourable prior years' claims
development.
Non-interest expenses increased $53 million, or 2%,
reflecting business growth, higher employee-related expenses, and
higher investment in technology.
The efficiency ratio for the quarter was 42.1%, compared with
41.6% in the prior quarter.
|
|
|
|
|
|
|
|
|
|
TABLE 8: U.S.
RETAIL
|
|
|
|
|
|
|
|
|
|
(millions of dollars,
except as noted)
|
|
|
|
|
For the three
months ended
|
|
|
October
31
|
|
July 31
|
|
October
31
|
|
Canadian
Dollars
|
|
2017
|
|
|
2017
|
|
|
2016
|
|
Net interest
income
|
$
|
1,872
|
|
$
|
1,924
|
|
$
|
1,832
|
|
Non-interest
income
|
|
669
|
|
|
715
|
|
|
592
|
|
Total
revenue1
|
|
2,541
|
|
|
2,639
|
|
|
2,424
|
|
Provision for credit
losses
|
|
203
|
|
|
180
|
|
|
193
|
|
Non-interest expenses
– reported
|
|
1,529
|
|
|
1,466
|
|
|
1,499
|
|
Non-interest expenses
– adjusted
|
|
1,503
|
|
|
1,466
|
|
|
1,499
|
|
Provision for
(recovery of) income taxes – reported
|
|
138
|
|
|
210
|
|
|
124
|
|
Provision for
(recovery of) income taxes – adjusted
|
|
148
|
|
|
210
|
|
|
124
|
|
U.S. Retail Bank
net income – reported
|
|
671
|
|
|
783
|
|
|
608
|
|
U.S. Retail Bank
net income – adjusted2
|
|
687
|
|
|
783
|
|
|
608
|
|
Equity in net income
of an investment in TD Ameritrade – reported
|
|
105
|
|
|
118
|
|
|
93
|
|
Equity in net income
of an investment in TD Ameritrade –
adjusted3
|
|
125
|
|
|
118
|
|
|
93
|
|
Net income –
reported
|
|
776
|
|
|
901
|
|
|
701
|
|
Net income –
adjusted
|
$
|
812
|
|
$
|
901
|
|
$
|
701
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
1,498
|
|
$
|
1,457
|
|
$
|
1,396
|
|
Non-interest
income
|
|
534
|
|
|
542
|
|
|
452
|
|
Total
revenue1
|
|
2,032
|
|
|
1,999
|
|
|
1,848
|
|
Provision for credit
losses
|
|
163
|
|
|
137
|
|
|
146
|
|
Non-interest expenses
– reported
|
|
1,222
|
|
|
1,113
|
|
|
1,142
|
|
Non-interest expenses
– adjusted
|
|
1,201
|
|
|
1,113
|
|
|
1,142
|
|
Provision for
(recovery of) income taxes – reported
|
|
109
|
|
|
159
|
|
|
95
|
|
Provision for
(recovery of) income taxes – adjusted
|
|
117
|
|
|
159
|
|
|
95
|
|
U.S. Retail Bank
net income – reported
|
|
538
|
|
|
590
|
|
|
465
|
|
U.S. Retail Bank
net income – adjusted2
|
|
551
|
|
|
590
|
|
|
465
|
|
Equity in net income
of an investment in TD Ameritrade – reported
|
|
83
|
|
|
88
|
|
|
71
|
|
Equity in net income
of an investment in TD Ameritrade –
adjusted3
|
|
99
|
|
|
88
|
|
|
71
|
|
Net income –
reported
|
|
621
|
|
|
678
|
|
|
536
|
|
Net income –
adjusted
|
$
|
650
|
|
$
|
678
|
|
$
|
536
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported4
|
|
9.3
|
%
|
|
10.3
|
%
|
|
8.3
|
%
|
Return on common
equity – adjusted4
|
|
9.7
|
|
|
10.3
|
|
|
8.3
|
|
Margin on average
earning assets1,5
|
|
3.18
|
|
|
3.14
|
|
|
3.13
|
|
Efficiency ratio –
reported
|
|
60.1
|
|
|
55.7
|
|
|
61.8
|
|
Efficiency ratio –
adjusted
|
|
59.1
|
|
|
55.7
|
|
|
61.8
|
|
Assets under
administration (billions of U.S.
dollars)6
|
$
|
18
|
|
$
|
18
|
|
$
|
17
|
|
Assets under
management (billions of U.S. dollars)6
|
|
63
|
|
|
61
|
|
|
66
|
|
Number of U.S. retail
stores
|
|
1,270
|
|
|
1,260
|
|
|
1,278
|
|
Average number of
full-time equivalent staff
|
|
26,094
|
|
|
25,812
|
|
|
26,103
|
|
1
|
Effective the first
quarter of 2017, the impact from certain treasury and balance sheet
management activities relating to the U.S. Retail segment is
recorded in the Corporate segment.
|
2
|
Adjusted U.S. Retail
Bank net income excludes the following items of note: Charges
associated with the Bank's acquisition of Scottrade Bank - fourth
quarter 2017 – $26 million ($16 million after tax) or US$21
million (US$13 million after tax). For explanations of items of
note, refer to the "Non-GAAP Financial Measures − Reconciliation of
Adjusted to Reported Net Income" table in the "How We Performed"
section of this document.
|
3
|
Adjusted equity in
net income of an investment in TD Ameritrade excludes the following
items of note: The Bank's share of costs associated with TD
Ameritrade's acquisition of Scottrade - fourth quarter 2017 – $20
million or US$16 million after tax amounts. For explanations of
items of note, refer to the "Non-GAAP Financial Measures −
Reconciliation of Adjusted to Reported Net Income" table in the
"How We Performed" section of this document.
|
4
|
Capital allocated to
the business segments was based on 9% CET1 Capital in fiscal 2017
and 2016.
|
5
|
The margin on average
earning assets excludes the impact related to the TD Ameritrade
Insured Deposit Accounts and the impact of intercompany deposits
and cash collateral. In addition, the value of tax-exempt interest
income is adjusted to its equivalent before-tax value.
|
6
|
Effective the first
quarter of 2017, the Bank changed the framework for classifying AUA
and AUM. The primary change is to include a portion of the AUM
balance administered by the Bank in AUA. Comparative amounts have
been recast to conform with the revised presentation.
|
Quarterly comparison – Q4 2017 vs. Q4 2016
U.S. Retail reported net income for the quarter was $776 million (US$621
million), an increase of $75
million (US$85 million), or
11% (16% in U.S. dollars), compared with the fourth quarter last
year. On an adjusted basis, net income for the quarter was
$812 million (US$650 million), an increase of $111 million (US$114
million), or 16% (21% in U.S. dollars). The reported and
adjusted annualized ROE for the quarter was 9.3% and 9.7%
respectively, compared with 8.3%, in the fourth quarter last
year.
U.S. Retail net income includes contributions from the U.S.
Retail Bank and the Bank's investment in TD Ameritrade. Reported
net income for the quarter from the U.S. Retail Bank and the Bank's
investment in TD Ameritrade were $671
million (US$538 million) and
$105 million (US$83 million), respectively. On an adjusted
basis for the quarter, the U.S. Retail Bank and the Bank's
investment in TD Ameritrade contributed net income of $687 million (US$551
million) and $125 million (US$99
million), respectively.
The reported contribution from TD Ameritrade of US$83 million increased US$12 million, or 17% compared with the fourth
quarter last year, primarily due to higher asset-based revenue,
partially offset by charges associated with the Scottrade
transaction. On an adjusted basis, the contribution from TD
Ameritrade increased US$28 million,
or 39%.
U.S. Retail Bank reported net income for the quarter increased
US$73 million, or 16%, due to a more favourable interest rate
environment, higher loan and deposit volumes, and fee income
growth, partially offset by higher expenses. U.S. Retail Bank
adjusted net income increased US$86 million, or 18%.
U.S. Retail Bank revenue is derived from personal and business
banking, and wealth management. Revenue for the quarter was
US$2,032 million, an increase of
US$184 million, or 10%, compared with the fourth quarter last
year. Net interest income increased US$102 million, or 7%,
primarily due to a more favourable interest rate environment and
growth in loan and deposit volumes, partially offset by the prior
year accounting impact from balance sheet management activities,
which was largely offset in non-interest income. Margin on average
earning assets was 3.18%, a 5 bps increase due to the same prior
year accounting impact. Excluding this impact, margin increased 16
bps, primarily due to higher interest rates. Non‑interest income
increased US$82 million, or 18%, reflecting fee income growth
in personal banking and wealth management, and the prior year
accounting impact from balance sheet management activities.
Average loan volumes increased US$8 billion, or 6%,
compared with the fourth quarter last year due to growth in
business and personal loans of 5% and 7%, respectively. Average
deposit volumes increased US$17 billion, or 7%, reflecting 2%
growth in business deposit volumes, 7% growth in personal deposit
volumes, and an 11% increase in sweep deposit volume from
TD Ameritrade. The increase in sweep deposit volume was
primarily driven by the Scottrade transaction.
AUA were US$18 billion as at
October 31, 2017, an increase of 5%,
compared with the fourth quarter last year, primarily due to higher
private banking balances. AUM were US$63 billion as at
October 31, 2017, a decrease of 5%, primarily due to the
previously disclosed outflow from an institutional account,
partially offset by positive market returns.
PCL for the quarter was US$163
million, an increase of US$17
million, or 12%, compared with the fourth quarter last year.
Personal banking PCL was US$161 million, an increase of
US$56 million, or 53%, primarily due
to higher provisions related to growth and mix in auto lending and
credit cards. Business banking PCL was US$9
million, a decrease of US$31
million, primarily due to higher increase in commercial
allowance in the prior year. PCL associated with debt securities
classified as loans was a benefit of US$7
million, a decrease of US$8
million reflecting improvement in cash flows associated with
underlying mortgage assets. Net impaired loans, excluding ACI loans
and debt securities classified as loans, were US$1.4 billion, a decrease of US$54 million, or 4%. Excluding ACI loans and
debt securities classified as loans, net impaired loans as a
percentage of total loans were 0.9% as at October 31, 2017, a decrease of 0.1% compared
with the fourth quarter last year.
Reported non-interest expenses for the quarter were US$1,222 million, an increase of
US$80 million, or 7%, compared with
the fourth quarter last year, reflecting higher employee costs and
investments in business initiatives, volume growth, and charges
associated with the Scottrade transaction, partially offset by
productivity savings and charges for store closures in the prior
year. On an adjusted basis, non-interest expenses increased
US$59 million, or 5%.
The reported and adjusted efficiency ratios for the quarter were
60.1% and 59.1% respectively, compared with 61.8%, in the fourth
quarter last year.
Quarterly comparison – Q4 2017 vs. Q3 2017
U.S. Retail reported net income decreased US$57 million, or
8%, compared with the prior quarter, while adjusted net income
decreased US$28 million, or 4%. U.S. Retail Canadian
dollar net income decreased $125 million, or 14%, with a
decrease in adjusted net income by $89 million, or 10%. The
reported and adjusted annualized ROE for the quarter was 9.3% and
9.7% respectively, compared to 10.3% in the prior quarter.
The reported contribution from TD Ameritrade decreased
US$5 million, or 6%, compared with
the prior quarter primarily due to charges associated with the
Scottrade transaction, partially offset by higher asset-based
revenue. On an adjusted basis, the contribution from TD Ameritrade
increased US$11 million, or 13%.
U.S. Retail Bank reported net income for the quarter decreased
US$52 million, or 9%, compared with the prior quarter, due to
higher expenses and PCL, partially offset by higher revenue. U.S.
Retail Bank adjusted net income for the quarter decreased
US$39 million, or 7%.
Revenue for the quarter increased US$33 million, or 2%,
compared with the prior quarter. Net interest income increased
US$41 million, or 3%, primarily due to higher loan and deposit
volumes and a more favourable interest rate environment. Margin on
average earning assets was 3.18%, a 4 bps increase, primarily due
to higher interest rates and balance sheet mix. Non‑interest income
decreased US$8 million.
Average loan volumes increased US$4 billion, or 3%,
compared with the prior quarter, due to growth in business and
personal loans of 1% and 5%, respectively. Average deposit volumes
increased US$9 billion, or 4%, reflecting 2% growth in
business deposit volumes and a 9% increase in sweep deposit volume
from TD Ameritrade. The increase in sweep deposit volume was
primarily driven by the Scottrade transaction.
AUA were US$18 billion as at
October 31, 2017, relatively flat
compared with the prior quarter. AUM were US$63 billion as at
October 31, 2017, an increase of 3%,
primarily due to positive market returns.
PCL for the quarter increased US$26
million, or 19%, compared with the prior quarter. Personal
banking PCL was US$161 million, an increase of
US$41 million, or 34%, primarily reflecting seasonal trends in
the credit card and auto portfolios. Business banking PCL was
US$9 million, a decrease of
US$7 million. PCL associated with debt securities classified
as loans was a benefit of US$7
million, a decrease of US$8
million, reflecting improvement in cash flows associated
with underlying mortgage assets. Net impaired loans, excluding ACI
loans and debt securities classified as loans, were US$1.4 billion, an increase of US$18 million, or 1%. Excluding ACI loans and
debt securities classified as loans, net impaired loans as a
percentage of total loans were relatively flat at 0.9% as at
October 31, 2017.
Reported non-interest expenses for the quarter increased
US$109 million, or 10%, compared with the prior quarter,
primarily due to seasonal increase in regulatory fees, higher
investments in business initiatives and employee costs, as well as
charges associated with the Scottrade transaction, partially offset
by charges for store closures in the prior quarter. On an adjusted
basis, non-interest expenses increased US$88
million, or 8%.
The reported and adjusted efficiency ratios for the quarter were
60.1% and 59.1% respectively, compared with 55.7% in the prior
quarter.
|
|
|
|
|
|
|
|
|
|
TABLE 9: WHOLESALE
BANKING
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
|
2017
|
|
2017
|
|
2016
|
|
Net interest income
(TEB)
|
$
|
277
|
|
$
|
329
|
|
$
|
396
|
|
Non-interest
income1
|
|
417
|
|
|
573
|
|
|
345
|
|
Total
revenue
|
|
694
|
|
|
902
|
|
|
741
|
|
Provision for
(recovery of) credit losses
|
|
–
|
|
|
–
|
|
|
1
|
|
Non-interest
expenses
|
|
420
|
|
|
504
|
|
|
432
|
|
Provision for
(recovery of) income taxes (TEB)
|
|
43
|
|
|
105
|
|
|
70
|
|
Net
income
|
$
|
231
|
|
$
|
293
|
|
$
|
238
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Trading-related
revenue (TEB)
|
$
|
311
|
|
$
|
463
|
|
$
|
380
|
|
Gross drawn (billions
of Canadian dollars)2
|
|
20.3
|
|
|
19.6
|
|
|
20.7
|
|
Return on common
equity3
|
|
16.0
|
%
|
|
19.6
|
%
|
|
16.1
|
%
|
Efficiency
ratio
|
|
60.5
|
|
|
55.9
|
|
|
58.3
|
|
Average number of
full-time equivalent staff
|
|
4,043
|
|
|
4,014
|
|
|
3,893
|
|
1
|
Effective February 1,
2017, the total gains and losses on derivatives hedging the
reclassified available-for-sale securities portfolio are recorded
in Wholesale Banking, previously reported in the Corporate segment
and treated as an item of note. Refer to the "Non-GAAP Financial
Measures – Reconciliation of Adjusted to Reported Net Income" table
in the "How We Performed" section of this document.
|
2
|
Includes gross loans
and bankers' acceptances, excluding letters of credit, cash
collateral, credit default swaps, and reserves for the corporate
lending business.
|
3
|
Capital allocated to
the business segment was based on 9% CET1 Capital in fiscal 2017
and 2016.
|
Quarterly comparison – Q4 2017 vs. Q4 2016
Wholesale Banking net income for the quarter was $231 million, a decrease of $7 million, or 3%, compared with the fourth
quarter last year reflecting lower revenue, partially offset by
lower non-interest expenses and lower taxes. The annualized ROE for
the quarter was 16.0%, compared with 16.1% in the fourth quarter
last year.
Wholesale Banking revenue is derived primarily from capital
markets and corporate and investment banking services provided to
corporate, government, and institutional clients. Wholesale Banking
generates revenue from corporate lending, advisory, underwriting,
sales, trading and research, client securitization, trade finance,
cash management, prime services, and trade execution services.
Revenue for the quarter was $694
million, a decrease of $47
million, or 6%, compared with the fourth quarter last year
reflecting lower trading-related revenue due to weaker capital
markets activity.
Non-interest expenses were $420
million, a decrease of $12
million, or 3%, compared with the fourth quarter last year
reflecting lower variable compensation, partially offset by
operating expenses related to TD Prime Services.
Quarterly comparison – Q4 2017 vs. Q3 2017
Wholesale Banking net income for the quarter decreased $62 million, or 21%, compared with the prior
quarter reflecting lower revenue, partially offset by lower
non-interest expenses and lower taxes. The annualized ROE for the
quarter was 16.0%, compared with 19.6% in the prior quarter.
Revenue for the quarter decreased $208
million, or 23%, compared with the prior quarter reflecting
lower trading-related revenue, underwriting, and corporate lending
fees.
Non-interest expenses for the quarter decreased $84 million, or 17%, compared with the prior
quarter primarily reflecting lower variable compensation.
|
|
|
|
|
|
|
TABLE 10:
CORPORATE
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
|
|
October
31
|
July
31
|
October
31
|
|
|
2017
|
2017
|
2016
|
Net income (loss)
– reported1,2
|
$
|
41
|
$
|
(150)
|
$
|
(138)
|
Pre-tax
adjustments for items of note3
|
|
|
|
|
|
|
Amortization of
intangibles
|
|
78
|
|
74
|
|
80
|
Dilution gain on the
Scottrade transaction4
|
|
(204)
|
|
–
|
|
–
|
Loss on sale of the
Direct Investing business in Europe
|
|
–
|
|
42
|
|
–
|
Fair value of
derivatives hedging the reclassified
available-for-sale
|
|
|
|
|
|
|
|
securities
portfolio2
|
|
–
|
|
–
|
|
(19)
|
Total pre-tax
adjustments for items of note
|
|
(126)
|
|
116
|
|
61
|
Provision for
(recovery of) income taxes for items of note
|
|
19
|
|
20
|
|
17
|
Net income (loss)
– adjusted
|
$
|
(104)
|
$
|
(54)
|
$
|
(94)
|
|
|
|
|
|
|
|
|
Decomposition of
items included in net income (loss) – adjusted
|
|
|
|
|
|
|
Net corporate
expenses
|
$
|
(182)
|
$
|
(166)
|
$
|
(215)
|
Other
|
|
43
|
|
83
|
|
92
|
Non-controlling
interests
|
|
35
|
|
29
|
|
29
|
Net income (loss)
– adjusted
|
$
|
(104)
|
$
|
(54)
|
$
|
(94)
|
|
|
|
|
|
|
|
|
Selected
volumes
|
|
|
|
|
|
|
Average number of
full-time equivalent staff
|
|
14,212
|
|
14,528
|
|
13,830
|
1
|
Effective the first
quarter of 2017, the impact from certain treasury and balance sheet
management activities relating to the U.S. Retail segment is
recorded in the Corporate
segment.
|
2
|
Effective February 1,
2017, the total gains and losses on derivatives hedging the
reclassified available-for-sale securities portfolio are recorded
in Wholesale Banking, previously reported in the Corporate segment
and treated as an item of note. Refer to the "Non‑GAAP Financial
Measures – Reconciliation of Adjusted to Reported Net Income" table
in the "How We Performed" section of this document.
|
3
|
For explanations of
items of note, refer to the "Non-GAAP Financial Measures –
Reconciliation of Adjusted to Reported Net Income" table in the
"How We Performed" section of this document.
|
4
|
In connection with TD
Ameritrade's acquisition of Scottrade on September 18, 2017, TD
Ameritrade issued 38.8 million shares, of which the Bank purchased
11.1 million pursuant to its pre-emptive rights. As a result of the
share issuance, the Bank's common stock ownership percentage in TD
Ameritrade decreased and the Bank realized the above dilution
gain.
|
Quarterly comparison – Q4 2017 vs. Q4 2016
Corporate segment's reported net income for the quarter was
$41 million, compared with a reported
net loss of $138 million in the
fourth quarter last year. The year-over-year increase in reported
net income was primarily attributable to the dilution gain on the
Scottrade transaction in the current quarter and decrease in net
corporate expenses, partially offset by lower contribution from
Other items. Net corporate expenses were lower reflecting the
positive impact of tax adjustments in the current quarter. Other
items decreased primarily due to lower revenue from treasury and
balance sheet management activities, and favourable impact of tax
items recognized in the same quarter last year. Adjusted net loss
was $104 million, compared with an
adjusted net loss of $94 million in
the fourth quarter last year.
Quarterly comparison – Q4 2017 vs. Q3 2017
Corporate segment's reported net income for the quarter was
$41 million, compared with a reported
net loss of $150 million in the prior
quarter. The quarter over quarter increase in reported net income
was primarily attributable to the dilution gain on the Scottrade
transaction in the current quarter and the loss on sale of the
Direct Investing business in Europe the prior quarter, partially offset by
lower contribution from Other items and increase in net corporate
expenses. Other items decreased primarily due to lower revenue from
treasury and balance sheet management activities, and favourable
impact of tax items recognized in the prior quarter. Net corporate
expenses increased due to higher positive impact of tax adjustments
in the prior quarter and timing of certain other expenses in the
current quarter. Adjusted net loss was $104
million, compared with an adjusted net loss of $54 million in the prior quarter.
CONSOLIDATED
FINANCIAL STATEMENTS
|
|
|
|
|
|
|
|
|
|
CONSOLIDATED
BALANCE SHEET1
|
|
|
|
|
(millions of Canadian
dollars)
|
|
|
|
As
at
|
|
October
31
|
October
31
|
|
|
2017
|
|
2016
|
ASSETS
|
|
|
Cash and due from
banks
|
$
|
3,971
|
$
|
3,907
|
Interest-bearing
deposits with banks
|
|
51,185
|
|
53,714
|
|
|
55,156
|
|
57,621
|
Trading loans,
securities, and other
|
|
103,918
|
|
99,257
|
Derivatives
|
|
56,195
|
|
72,242
|
Financial assets
designated at fair value through profit or
loss
|
|
4,032
|
|
4,283
|
Available-for-sale
securities
|
|
146,411
|
|
107,571
|
|
|
310,556
|
|
283,353
|
Held-to-maturity
securities
|
|
71,363
|
|
84,395
|
Securities
purchased under reverse repurchase
agreements
|
|
134,429
|
|
86,052
|
Loans
|
|
|
|
|
Residential mortgages
|
|
222,079
|
|
217,336
|
Consumer instalment
and other personal
|
|
157,101
|
|
144,531
|
Credit card
|
|
33,007
|
|
31,914
|
Business and
government
|
|
200,978
|
|
194,074
|
Debt securities
classified as loans
|
|
3,209
|
|
1,674
|
|
|
616,374
|
|
589,529
|
Allowance for loan
losses
|
|
(3,783)
|
|
(3,873)
|
Loans, net of
allowance for loan losses
|
|
612,591
|
|
585,656
|
Other
|
|
|
|
|
Customers' liability
under acceptances
|
|
17,297
|
|
15,706
|
Investment in TD
Ameritrade
|
|
7,784
|
|
7,091
|
Goodwill
|
|
16,156
|
|
16,662
|
Other intangibles
|
|
2,618
|
|
2,639
|
Land, buildings,
equipment, and other depreciable assets
|
|
5,313
|
|
5,482
|
Deferred tax assets
|
|
2,497
|
|
2,084
|
Amounts receivable
from brokers, dealers, and clients
|
|
29,971
|
|
17,436
|
Other assets
|
|
13,264
|
|
12,790
|
|
|
94,900
|
|
79,890
|
Total
assets
|
$
|
1,278,995
|
$
|
1,176,967
|
LIABILITIES
|
|
|
|
|
Trading
deposits
|
$
|
79,940
|
$
|
79,786
|
Derivatives
|
|
51,214
|
|
65,425
|
Securitization
liabilities at fair value
|
|
12,757
|
|
12,490
|
Other financial
liabilities designated at fair value through profit or
loss
|
|
8
|
|
190
|
|
|
|
143,919
|
|
157,891
|
Deposits
|
|
|
|
|
Personal
|
|
468,155
|
|
439,232
|
Banks
|
|
25,887
|
|
17,201
|
Business and
government
|
|
338,782
|
|
317,227
|
|
|
|
832,824
|
|
773,660
|
Other
|
|
|
|
|
Acceptances
|
|
17,297
|
|
15,706
|
Obligations related
to securities sold short
|
|
35,482
|
|
33,115
|
Obligations related
to securities sold under repurchase agreements
|
|
88,591
|
|
48,973
|
Securitization
liabilities at amortized cost
|
|
16,076
|
|
17,918
|
Amounts payable to
brokers, dealers, and clients
|
|
32,851
|
|
17,857
|
Insurance-related
liabilities
|
|
6,775
|
|
7,046
|
Other liabilities
|
|
20,462
|
|
19,696
|
|
|
|
217,534
|
|
160,311
|
Subordinated notes
and debentures
|
|
9,528
|
|
10,891
|
Total
liabilities
|
|
1,203,805
|
|
1,102,753
|
EQUITY
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Common shares
|
|
20,931
|
|
20,711
|
Preferred shares
|
|
4,750
|
|
4,400
|
Treasury shares –
common
|
|
(176)
|
|
(31)
|
Treasury shares –
preferred
|
|
(7)
|
|
(5)
|
Contributed surplus
|
|
214
|
|
203
|
Retained earnings
|
|
40,489
|
|
35,452
|
Accumulated other
comprehensive income (loss)
|
|
8,006
|
|
11,834
|
|
|
|
74,207
|
|
72,564
|
Non-controlling
interests in subsidiaries
|
|
983
|
|
1,650
|
Total
equity
|
|
75,190
|
|
74,214
|
Total liabilities
and equity
|
$
|
1,278,995
|
$
|
1,176,967
|
1
|
The amounts as at
October 31, 2017 and October 31, 2016, have been derived from
audited financial statements.
|
CONSOLIDATED
STATEMENT OF INCOME1
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
October
31
|
October
31
|
October
31
|
|
2017
|
2016
|
2017
|
2016
|
Interest
income
|
|
|
|
|
|
|
|
|
Loans
|
$
|
6,258
|
$
|
5,589
|
$
|
23,663
|
$
|
21,751
|
Securities
|
|
|
|
|
|
|
|
|
|
Interest
|
|
1,275
|
|
978
|
|
4,595
|
|
3,672
|
|
Dividends
|
|
212
|
|
241
|
|
1,128
|
|
912
|
Deposits with
banks
|
|
141
|
|
68
|
|
446
|
|
225
|
|
|
7,886
|
|
6,876
|
|
29,832
|
|
26,560
|
Interest
expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
1,858
|
|
1,340
|
|
6,615
|
|
4,758
|
Securitization
liabilities
|
|
133
|
|
103
|
|
472
|
|
452
|
Subordinated notes
and debentures
|
|
103
|
|
107
|
|
391
|
|
395
|
Other
|
|
462
|
|
254
|
|
1,507
|
|
1,032
|
|
|
2,556
|
|
1,804
|
|
8,985
|
|
6,637
|
Net interest
income
|
|
5,330
|
|
5,072
|
|
20,847
|
|
19,923
|
Non-interest
income
|
|
|
|
|
|
|
|
|
Investment and
securities services
|
|
1,095
|
|
1,064
|
|
4,459
|
|
4,143
|
Credit
fees
|
|
278
|
|
268
|
|
1,130
|
|
1,048
|
Net securities gain
(loss)
|
|
41
|
|
28
|
|
128
|
|
54
|
Trading income
(loss)
|
|
141
|
|
83
|
|
303
|
|
395
|
Service
charges
|
|
658
|
|
656
|
|
2,648
|
|
2,571
|
Card
services
|
|
560
|
|
582
|
|
2,388
|
|
2,313
|
Insurance
revenue
|
|
943
|
|
945
|
|
3,760
|
|
3,796
|
Other income (loss)
|
|
224
|
|
47
|
|
486
|
|
72
|
|
|
3,940
|
|
3,673
|
|
15,302
|
|
14,392
|
Total
revenue
|
|
9,270
|
|
8,745
|
|
36,149
|
|
34,315
|
Provision for
credit losses
|
|
578
|
|
548
|
|
2,216
|
|
2,330
|
Insurance claims
and related expenses
|
|
615
|
|
585
|
|
2,246
|
|
2,462
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
2,427
|
|
2,321
|
|
10,018
|
|
9,298
|
Occupancy, including
depreciation
|
|
442
|
|
481
|
|
1,794
|
|
1,825
|
Equipment, including
depreciation
|
|
252
|
|
239
|
|
992
|
|
944
|
Amortization of other
intangibles
|
|
186
|
|
182
|
|
704
|
|
708
|
Marketing and
business development
|
|
203
|
|
198
|
|
726
|
|
743
|
Restructuring charges
(recovery)
|
|
(4)
|
|
1
|
|
2
|
|
(18)
|
Brokerage-related
fees
|
|
74
|
|
78
|
|
314
|
|
316
|
Professional and
advisory services
|
|
324
|
|
379
|
|
1,165
|
|
1,232
|
Other
|
|
924
|
|
969
|
|
3,651
|
|
3,829
|
|
|
4,828
|
|
4,848
|
|
19,366
|
|
18,877
|
Income before
income taxes and equity in net income of an investment in TD
Ameritrade
|
|
3,249
|
|
2,764
|
|
12,321
|
|
10,646
|
Provision for
(recovery of) income taxes
|
|
640
|
|
555
|
|
2,253
|
|
2,143
|
Equity in net
income of an investment in TD Ameritrade
|
|
103
|
|
94
|
|
449
|
|
433
|
Net income
|
|
2,712
|
|
2,303
|
|
10,517
|
|
8,936
|
Preferred
dividends
|
|
50
|
|
43
|
|
193
|
|
141
|
Net income
available to common shareholders and non-controlling
interests
|
|
|
|
|
|
|
|
|
|
in
subsidiaries
|
$
|
2,662
|
$
|
2,260
|
$
|
10,324
|
$
|
8,795
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
Common shareholders
|
$
|
2,627
|
$
|
2,231
|
$
|
10,203
|
$
|
8,680
|
|
Non-controlling
interests in
subsidiaries
|
|
35
|
|
29
|
|
121
|
|
115
|
Earnings per
share (Canadian dollars)
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.42
|
$
|
1.20
|
$
|
5.51
|
$
|
4.68
|
Diluted
|
|
1.42
|
|
1.20
|
|
5.50
|
|
4.67
|
Dividends per
common share (Canadian dollars)
|
|
0.60
|
|
0.55
|
|
2.35
|
|
2.16
|
1
|
The amounts for the
three months ended October 31, 2017, and October 31, 2016, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2017, and
October 31, 2016, have been derived from audited
financial statements.
|
CONSOLIDATED
STATEMENT OF COMPREHENSIVE INCOME1
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
October
31
|
October
31
|
October
31
|
|
|
2017
|
2016
|
2017
|
2016
|
Net income
|
$
|
2,712
|
$
|
2,303
|
$
|
10,517
|
$
|
8,936
|
Other
comprehensive income (loss), net of income
taxes
|
|
|
|
|
|
|
|
|
Items that will
be subsequently reclassified to net
income
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains (losses) on available-for-sale
securities
|
|
|
|
|
|
|
|
|
Change in unrealized
gains (losses) on available-for-sale
securities2
|
|
97
|
|
39
|
|
467
|
|
274
|
Reclassification to
earnings of net losses (gains) in respect of available-for-sale
securities3
|
|
(61)
|
|
(13)
|
|
(143)
|
|
(56)
|
|
|
|
36
|
|
26
|
|
324
|
|
218
|
Net change in
unrealized foreign currency translation gains (losses)
on
|
|
|
|
|
|
|
|
|
|
Investments in
foreign operations, net of hedging activities
|
|
|
|
|
|
|
|
|
Unrealized gains
(losses) on investments in foreign operations
|
|
2,275
|
|
1,639
|
|
(2,534)
|
|
1,290
|
Reclassification to
earnings of net losses (gains) on investments in foreign
operations4
|
|
–
|
|
–
|
|
(17)
|
|
–
|
Net gains (losses) on
hedges of investments in foreign
operations5
|
|
(637)
|
|
(349)
|
|
659
|
|
34
|
Reclassification to
earnings of net losses (gains) on hedges of investments in foreign
operations6
|
|
–
|
|
–
|
|
4
|
|
–
|
|
|
|
1,638
|
|
1,290
|
|
(1,888)
|
|
1,324
|
Net change in
gains (losses) on derivatives designated as cash flow
hedges
|
|
|
|
|
|
|
|
|
Change in net gains
(losses) on derivatives designated as cash flow
hedges7
|
|
888
|
|
591
|
|
(1,454)
|
|
835
|
Reclassification to
earnings of net losses (gains) on cash flow
hedges8
|
|
(1,120)
|
|
(1,110)
|
|
(810)
|
|
(752)
|
|
|
|
(232)
|
|
(519)
|
|
(2,264)
|
|
83
|
Items that will
not be subsequently reclassified to net
income
|
|
|
|
|
|
|
|
|
|
Actuarial gains
(losses) on employee benefit plans9
|
|
(79)
|
|
(139)
|
|
325
|
|
(882)
|
Total other
comprehensive income (loss), net of income
taxes
|
|
1,363
|
|
658
|
|
(3,503)
|
|
743
|
Total
comprehensive income (loss) for the
year
|
$
|
4,075
|
$
|
2,961
|
$
|
7,014
|
$
|
9,679
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
Common shareholders
|
$
|
3,990
|
$
|
2,889
|
$
|
6,700
|
$
|
9,423
|
|
Preferred
shareholders
|
|
50
|
|
43
|
|
193
|
|
141
|
|
Non-controlling
interests in subsidiaries
|
|
35
|
|
29
|
|
121
|
|
115
|
1
|
The amounts for the
three months ended October 31, 2017, and October 31, 2016, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2017, and
October 31, 2016, have been derived from audited
financial statements.
|
2
|
Net of income tax
recovery of $16 million for the three months ended October 31, 2017
(three months ended October 31, 2016 – net of income tax provision
of $25 million). Net of income tax provision of $150 million for
the twelve months ended October 31, 2017 (twelve months ended
October 31, 2016 – net of income tax provision of $125
million).
|
3
|
Net of income tax
recovery of $27 million for the three months ended October 31, 2017
(three months ended October 31, 2016 – net of income tax provision
of $12 million). Net of income tax recovery of $36 million for the
twelve months ended October 31, 2017 (twelve months ended October
31, 2016 – net of income tax provision of $32 million).
|
4
|
Net of income tax
provision of nil for the three months ended October 31, 2017 (three
months ended October 31, 2016 – net of income tax provision of
nil). Net of income tax provision of nil for the twelve months
ended October 31, 2017 (twelve months ended October 31, 2016 – net
of income tax provision of nil).
|
5
|
Net of income tax
recovery of $227 million for the three months ended October 31,
2017 (three months ended October 31, 2016 – net of income tax
recovery of $126 million). Net of income tax provision of $237
million for the twelve months ended October 31, 2017 (twelve months
ended October 31, 2016 – net of income tax provision of $9
million).
|
6
|
Net of income tax
provision of nil for the three months ended October 31, 2017 (three
months ended October 31, 2016 – net of income tax provision of
nil). Net of income tax recovery of $1 million for the twelve
months ended October 31, 2017 (twelve months ended October 31, 2016
– net of income tax provision of nil).
|
7
|
Net of income tax
provision of $489 million for the three months ended October 31,
2017 (three months ended October 31, 2016 – net of income tax
provision of $375 million). Net of income tax recovery of $789
million for the twelve months ended October 31, 2017 (twelve months
ended October 31, 2016 – net of income tax provision of $599
million).
|
8
|
Net of income tax
provision of $622 million for the three months ended October 31,
2017 (three months ended October 31, 2016 – net of income tax
provision of $624 million). Net of income tax provision of $258
million for the twelve months ended October 31, 2017 (twelve months
ended October 31, 2016 – net of income tax provision of $533
million).
|
9
|
Net of income tax
recovery of $15 million for the three months ended October 31, 2017
(three months ended October 31, 2016 – net of income tax recovery
of $71 million). Net of income tax provision of $129 million for
the twelve months ended October 31, 2017 (twelve months ended
October 31, 2016 – net of income tax recovery of $340
million).
|
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY1
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
2017
|
2016
|
2017
|
2016
|
Common
shares
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
20,912
|
$
|
20,597
|
$
|
20,711
|
$
|
20,294
|
Proceeds from shares
issued on exercise of stock options
|
|
27
|
|
30
|
|
148
|
|
186
|
Shares issued as a
result of dividend reinvestment plan
|
|
82
|
|
84
|
|
329
|
|
335
|
Purchase of shares
for cancellation
|
|
(90)
|
|
–
|
|
(257)
|
|
(104)
|
Balance at end of
period
|
|
20,931
|
|
20,711
|
|
20,931
|
|
20,711
|
Preferred
shares
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
4,750
|
|
3,400
|
|
4,400
|
|
2,700
|
Issue of
shares
|
|
–
|
|
1,000
|
|
350
|
|
1,700
|
Balance at end of
period
|
|
4,750
|
|
4,400
|
|
4,750
|
|
4,400
|
Treasury shares –
common
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
(22)
|
|
(42)
|
|
(31)
|
|
(49)
|
Purchase of
shares
|
|
(2,684)
|
|
(1,361)
|
|
(9,654)
|
|
(5,769)
|
Sale of
shares
|
|
2,530
|
|
1,372
|
|
9,509
|
|
5,787
|
Balance at end of
period
|
|
(176)
|
|
(31)
|
|
(176)
|
|
(31)
|
Treasury shares –
preferred
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
(8)
|
|
(5)
|
|
(5)
|
|
(3)
|
Purchase of
shares
|
|
(38)
|
|
(58)
|
|
(175)
|
|
(115)
|
Sale of
shares
|
|
39
|
|
58
|
|
173
|
|
113
|
Balance at end of
period
|
|
(7)
|
|
(5)
|
|
(7)
|
|
(5)
|
Contributed
surplus
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
207
|
|
197
|
|
203
|
|
214
|
Net premium
(discount) on sale of treasury shares
|
|
6
|
|
10
|
|
23
|
|
26
|
Issuance of stock
options, net of options exercised
|
|
–
|
|
(1)
|
|
(8)
|
|
(28)
|
Other
|
|
1
|
|
(3)
|
|
(4)
|
|
(9)
|
Balance at end of
period
|
|
214
|
|
203
|
|
214
|
|
203
|
Retained
earnings
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
39,473
|
|
34,387
|
|
35,452
|
|
32,053
|
Net income
attributable to shareholders
|
|
2,677
|
|
2,274
|
|
10,396
|
|
8,821
|
Common
dividends
|
|
(1,105)
|
|
(1,019)
|
|
(4,347)
|
|
(4,002)
|
Preferred
dividends
|
|
(50)
|
|
(43)
|
|
(193)
|
|
(141)
|
Share issue expenses
and others
|
|
–
|
|
(8)
|
|
(4)
|
|
(14)
|
Net premium on
repurchase of common shares and redemption of preferred
shares
|
|
(427)
|
|
–
|
|
(1,140)
|
|
(383)
|
Actuarial gains
(losses) on employee benefit plans
|
|
(79)
|
|
(139)
|
|
325
|
|
(882)
|
Balance at end of
period
|
|
40,489
|
|
35,452
|
|
40,489
|
|
35,452
|
Accumulated other
comprehensive income (loss), net of income
taxes
|
|
|
|
|
|
|
|
|
Net unrealized
gain (loss) on available-for-sale securities:
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
587
|
|
273
|
|
299
|
|
81
|
Other comprehensive
income (loss)
|
|
36
|
|
26
|
|
324
|
|
218
|
Balance at end of
period
|
|
623
|
|
299
|
|
623
|
|
299
|
Net unrealized
foreign currency translation gain (loss) on investments in
foreign
|
|
|
|
|
|
|
|
|
|
operations, net of
hedging activities:
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
6,153
|
|
8,389
|
|
9,679
|
|
8,355
|
Other comprehensive
income (loss)
|
|
1,638
|
|
1,290
|
|
(1,888)
|
|
1,324
|
Balance at end of
period
|
|
7,791
|
|
9,679
|
|
7,791
|
|
9,679
|
Net gain (loss) on
derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
(176)
|
|
2,375
|
|
1,856
|
|
1,773
|
Other comprehensive
income (loss)
|
|
(232)
|
|
(519)
|
|
(2,264)
|
|
83
|
Balance at end of
period
|
|
(408)
|
|
1,856
|
|
(408)
|
|
1,856
|
Total accumulated
other comprehensive income
|
|
8,006
|
|
11,834
|
|
8,006
|
|
11,834
|
Total
shareholders' equity
|
|
74,207
|
|
72,564
|
|
74,207
|
|
72,564
|
Non-controlling
interests in subsidiaries
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
1,588
|
|
1,633
|
|
1,650
|
|
1,610
|
Net income
attributable to non-controlling interests in
subsidiaries
|
|
35
|
|
29
|
|
121
|
|
115
|
Redemption of REIT
preferred shares
|
|
(617)
|
|
–
|
|
(617)
|
|
–
|
Other
|
|
(23)
|
|
(12)
|
|
(171)
|
|
(75)
|
Balance at end of
period
|
|
983
|
|
1,650
|
|
983
|
|
1,650
|
Total
equity
|
$
|
75,190
|
$
|
74,214
|
$
|
75,190
|
$
|
74,214
|
1
|
The amounts for the
three months ended October 31, 2017, and October 31, 2016, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2017, and October 31, 2016,
have been derived from audited financial statements.
|
CONSOLIDATED
STATEMENT OF CASH FLOWS1
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
|
2017
|
2016
|
2017
|
2016
|
Cash flows from
(used in) operating activities
|
|
|
|
|
|
|
|
|
Net income before
income taxes, including equity in net income of an investment in TD
Ameritrade
|
$
|
3,352
|
$
|
2,858
|
$
|
12,770
|
$
|
11,079
|
Adjustments to
determine net cash flows from (used in) operating
activities
|
|
|
|
|
|
|
|
|
|
Provision for credit
losses
|
|
578
|
|
548
|
|
2,216
|
|
2,330
|
|
Depreciation
|
|
146
|
|
168
|
|
603
|
|
629
|
|
Amortization of other
intangibles
|
|
186
|
|
182
|
|
704
|
|
708
|
|
Net securities losses
(gains)
|
|
(41)
|
|
(28)
|
|
(128)
|
|
(54)
|
|
Equity in net income
of an investment in TD Ameritrade
|
|
(103)
|
|
(94)
|
|
(449)
|
|
(433)
|
|
Dilution
gain
|
|
(204)
|
|
–
|
|
(204)
|
|
–
|
|
Deferred
taxes
|
|
(19)
|
|
83
|
|
175
|
|
103
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
Interest receivable
and payable
|
|
3
|
|
10
|
|
(283)
|
|
7
|
|
Securities sold
short
|
|
676
|
|
(11,449)
|
|
2,367
|
|
(5,688)
|
|
Trading loans and
securities
|
|
(4,099)
|
|
3,677
|
|
(4,661)
|
|
(4,100)
|
|
Loans net of
securitization and sales
|
|
(15,488)
|
|
(14,600)
|
|
(22,332)
|
|
(44,158)
|
|
Deposits
|
|
38,173
|
|
22,226
|
|
40,150
|
|
81,885
|
|
Derivatives
|
|
(3,194)
|
|
1,321
|
|
1,836
|
|
5,403
|
|
Financial assets and
liabilities designated at fair value through profit or
loss
|
|
(230)
|
|
51
|
|
245
|
|
96
|
|
Securitization
liabilities
|
|
(290)
|
|
(1,050)
|
|
(1,575)
|
|
(3,321)
|
|
Other
|
|
(1,698)
|
|
(2,061)
|
|
3,436
|
|
(193)
|
Net cash from (used
in) operating activities
|
|
17,748
|
|
1,842
|
|
34,870
|
|
44,293
|
Cash flows from
(used in) financing activities
|
|
|
|
|
|
|
|
|
Change in securities
sold under repurchase agreements
|
|
10,473
|
|
(9,789)
|
|
39,618
|
|
(18,183)
|
Issuance of
subordinated notes and debentures
|
|
–
|
|
2,012
|
|
1,500
|
|
3,262
|
Redemption of
subordinated notes and debentures
|
|
(270)
|
|
–
|
|
(2,520)
|
|
(1,000)
|
Common shares
issued
|
|
24
|
|
26
|
|
125
|
|
152
|
Preferred shares
issued
|
|
–
|
|
992
|
|
346
|
|
1,686
|
Repurchase of common
shares
|
|
(517)
|
|
–
|
|
(1,397)
|
|
(487)
|
Redemption of
non-controlling interests in subsidiaries
|
|
(626)
|
|
–
|
|
(626)
|
|
–
|
Sale of treasury
shares
|
|
2,575
|
|
1,440
|
|
9,705
|
|
5,926
|
Purchase of treasury
shares
|
|
(2,722)
|
|
(1,419)
|
|
(9,829)
|
|
(5,884)
|
Dividends
paid
|
|
(1,073)
|
|
(978)
|
|
(4,211)
|
|
(3,808)
|
Distributions to
non-controlling interests in subsidiaries
|
|
(26)
|
|
(29)
|
|
(112)
|
|
(115)
|
Net cash from (used
in) financing activities
|
|
7,838
|
|
(7,745)
|
|
32,599
|
|
(18,451)
|
Cash flows from
(used in) investing activities
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
(5,584)
|
|
891
|
|
2,529
|
|
(11,231)
|
Activities in
available-for-sale securities
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(14,036)
|
|
(17,745)
|
|
(63,339)
|
|
(52,775)
|
|
Proceeds from
maturities
|
|
6,541
|
|
6,518
|
|
30,775
|
|
28,454
|
|
Proceeds from
sales
|
|
1,829
|
|
1,961
|
|
4,977
|
|
4,665
|
Activities in
held-to-maturity securities
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(1,833)
|
|
(5,285)
|
|
(17,807)
|
|
(20,575)
|
|
Proceeds from
maturities
|
|
3,687
|
|
6,019
|
|
27,729
|
|
15,193
|
|
Proceeds from
sales
|
|
–
|
|
–
|
|
452
|
|
–
|
Activities in debt
securities classified as loans
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(10)
|
|
–
|
|
(2,471)
|
|
(41)
|
|
Proceeds from
maturities
|
|
48
|
|
90
|
|
337
|
|
654
|
|
Proceeds from
sales
|
|
15
|
|
–
|
|
447
|
|
1
|
Net purchases of
land, buildings, equipment, and other depreciable
assets
|
|
(305)
|
|
(341)
|
|
(434)
|
|
(797)
|
Changes in securities
purchased (sold) under reverse repurchase
agreements
|
|
(14,029)
|
|
14,057
|
|
(48,377)
|
|
11,312
|
Net cash acquired
from (paid for) divestitures, acquisitions, and the purchase of TD
Ameritrade shares
|
|
(2,129)
|
|
–
|
|
(2,129)
|
|
–
|
Net cash from (used
in) investing activities
|
|
(25,806)
|
|
6,165
|
|
(67,311)
|
|
(25,140)
|
Effect of exchange
rate changes on cash and due from banks
|
|
78
|
|
52
|
|
(94)
|
|
51
|
Net increase
(decrease) in cash and due from banks
|
|
(142)
|
|
314
|
|
64
|
|
753
|
Cash and due from
banks at beginning of period
|
|
4,113
|
|
3,593
|
|
3,907
|
|
3,154
|
Cash and due from
banks at end of period
|
$
|
3,971
|
$
|
3,907
|
$
|
3,971
|
$
|
3,907
|
Supplementary
disclosure of cash flows from operating
activities
|
|
|
|
|
|
|
|
|
Amount of income
taxes paid (refunded) during the period
|
$
|
756
|
$
|
565
|
$
|
2,866
|
$
|
1,182
|
Amount of interest
paid during the period
|
|
2,384
|
|
1,728
|
|
8,957
|
|
6,559
|
Amount of interest
received during the period
|
|
7,505
|
|
6,569
|
|
28,393
|
|
25,577
|
Amount of dividends
received during the period
|
|
242
|
|
220
|
|
1,153
|
|
921
|
1
|
The amounts for the
three months ended October 31, 2017, and October 31, 2016, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2017, and
October 31, 2016, have been derived from audited
financial statements.
|
Certain comparative amounts have been reclassified to conform
with the presentation adopted in the current period.
Appendix A – Segmented Information
For management
reporting purposes, the Bank reports its results under three key
business segments: Canadian Retail, which includes the results of
the Canadian personal and commercial banking businesses, Canadian
credit cards, TD Auto Finance Canada and Canadian wealth and
insurance businesses; U.S. Retail, which includes the results of
the U.S. personal and commercial banking businesses, U.S. credit
cards, TD Auto Finance U.S., U.S. wealth business, and the Bank's
investment in TD Ameritrade; and Wholesale Banking. The Bank's
other activities are grouped into the Corporate segment.
Results for these segments for the three and twelve months ended
October 31 are presented in the
following tables.
Results by
Business Segment1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
|
|
|
For the three
months ended
|
|
|
Canadian
Retail
|
U.S.
Retail
|
Wholesale
Banking3,4
|
Corporate3,4
|
Total
|
|
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net interest income
(loss)
|
$
|
2,773
|
$
|
2,551
|
$
|
1,872
|
$
|
1,832
|
$
|
277
|
$
|
396
|
$
|
408
|
$
|
293
|
$
|
5,330
|
$
|
5,072
|
Non-interest income
(loss)
|
|
2,625
|
|
2,599
|
|
669
|
|
592
|
|
417
|
|
345
|
|
229
|
|
137
|
|
3,940
|
|
3,673
|
Total
revenue5
|
|
5,398
|
|
5,150
|
|
2,541
|
|
2,424
|
|
694
|
|
741
|
|
637
|
|
430
|
|
9,270
|
|
8,745
|
Provision for
(recovery of) credit losses
|
|
244
|
|
263
|
|
203
|
|
193
|
|
–
|
|
1
|
|
131
|
|
91
|
|
578
|
|
548
|
Insurance claims and
related expenses
|
|
615
|
|
585
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
615
|
|
585
|
Non-interest expenses
|
|
2,272
|
|
2,250
|
|
1,529
|
|
1,499
|
|
420
|
|
432
|
|
607
|
|
667
|
|
4,828
|
|
4,848
|
Income (loss) before
income taxes
|
|
2,267
|
|
2,052
|
|
809
|
|
732
|
|
274
|
|
308
|
|
(101)
|
|
(328)
|
|
3,249
|
|
2,764
|
Provision for
(recovery of) income taxes
|
|
603
|
|
550
|
|
138
|
|
124
|
|
43
|
|
70
|
|
(144)
|
|
(189)
|
|
640
|
|
555
|
Equity in net income
of an investment in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TD
Ameritrade
|
|
–
|
|
–
|
|
105
|
|
93
|
|
–
|
|
–
|
|
(2)
|
|
1
|
|
103
|
|
94
|
Net income (loss)
|
$
|
1,664
|
$
|
1,502
|
$
|
776
|
$
|
701
|
$
|
231
|
$
|
238
|
$
|
41
|
$
|
(138)
|
$
|
2,712
|
$
|
2,303
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve
months ended
|
|
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
Oct.
31
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
Net interest income
(loss)
|
$
|
10,611
|
$
|
9,979
|
$
|
7,486
|
$
|
7,093
|
$
|
1,804
|
$
|
1,685
|
$
|
946
|
$
|
1,166
|
$
|
20,847
|
$
|
19,923
|
Non-interest income
(loss)
|
|
10,451
|
|
10,230
|
|
2,735
|
|
2,366
|
|
1,467
|
|
1,345
|
|
649
|
|
451
|
|
15,302
|
|
14,392
|
Total
revenue5
|
|
21,062
|
|
20,209
|
|
10,221
|
|
9,459
|
|
3,271
|
|
3,030
|
|
1,595
|
|
1,617
|
|
36,149
|
|
34,315
|
Provision for
(recovery of) credit losses
|
|
986
|
|
1,011
|
|
792
|
|
744
|
|
(28)
|
|
74
|
|
466
|
|
501
|
|
2,216
|
|
2,330
|
Insurance claims and
related expenses
|
|
2,246
|
|
2,462
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
2,246
|
|
2,462
|
Non-interest expenses
|
|
8,934
|
|
8,557
|
|
5,878
|
|
5,693
|
|
1,929
|
|
1,739
|
|
2,625
|
|
2,888
|
|
19,366
|
|
18,877
|
Income (loss) before
income taxes
|
|
8,896
|
|
8,179
|
|
3,551
|
|
3,022
|
|
1,370
|
|
1,217
|
|
(1,496)
|
|
(1,772)
|
|
12,321
|
|
10,646
|
Provision for
(recovery of) income taxes
|
|
2,371
|
|
2,191
|
|
671
|
|
498
|
|
331
|
|
297
|
|
(1,120)
|
|
(843)
|
|
2,253
|
|
2,143
|
Equity in net income
of an investment in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TD
Ameritrade
|
|
–
|
|
–
|
|
442
|
|
435
|
|
–
|
|
–
|
|
7
|
|
(2)
|
|
449
|
|
433
|
Net income (loss)
|
$
|
6,525
|
$
|
5,988
|
$
|
3,322
|
$
|
2,959
|
$
|
1,039
|
$
|
920
|
$
|
(369)
|
$
|
(931)
|
$
|
10,517
|
$
|
8,936
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As
at
|
Total
assets6
|
$
|
404,444
|
$
|
383,011
|
$
|
403,937
|
$
|
388,749
|
$
|
406,138
|
$
|
342,478
|
$
|
64,476
|
$
|
62,729
|
$
|
1,278,995
|
$
|
1,176,967
|
1
|
The amounts for the
three months ended October 31, 2017, and October 31, 2016, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2017, and
October 31, 2016, have been derived from audited
financial statements.
|
2
|
The presentation of
the U.S. strategic cards portfolio revenues, provision for credit
losses, and expenses in the U.S. Retail segment includes only the
Bank's agreed portion of the U.S. strategic cards portfolio, while
the Corporate segment includes the retailer program partners'
share.
|
3
|
Net interest income
within Wholesale Banking is calculated on a taxable equivalent
basis (TEB). The TEB adjustment reflected in Wholesale Banking is
reversed in the Corporate segment.
|
4
|
Effective February 1,
2017, the total gains and losses as a result of changes in fair
value of the credit default swap (CDS) and interest rate swap
contracts hedging the reclassified available-for-sale securities
portfolio are recorded in Wholesale Banking. Previously, these
derivatives were accounted for on an accrual basis in Wholesale
Banking and the gains and losses related to the derivatives, in
excess of the accrued costs were reported in Corporate
Segment.
|
5
|
Effective fiscal
2017, the impact from certain treasury and balance sheet management
activities relating to the U.S. Retail segment is recorded in the
Corporate segment.
|
6
|
Total assets as at
October 31, 2017 and October 31, 2016, have been derived from
audited financial statements.
|
SHAREHOLDER AND INVESTOR INFORMATION
Shareholder Services
If
you:
|
And your inquiry
relates to:
|
Please
contact:
|
Are a registered
shareholder (your name
appears on your TD share certificate)
|
Missing dividends,
lost share certificates, estate
questions, address changes to the share register,
dividend bank account changes, the dividend
reinvestment plan, eliminating duplicate mailings of
shareholder materials or stopping (and resuming)
receiving annual and quarterly reports
|
Transfer
Agent:
AST Trust Company
(Canada)
P.O. Box 700, Station B
Montréal, Québec H3B
3K3
1-800-387-0825
(Canada and U.S. only)
or
416-682-3860
Facsimile:
1-888-249-6189
inquiries@astfinancial.com or
www.astfinancial.com/ca-en
|
Hold your TD shares
through the
Direct
Registration System
in the United
States
|
Missing dividends,
lost share certificates, estate
questions, address changes to the share register,
eliminating duplicate mailings of shareholder materials
or stopping (and resuming) receiving annual and
quarterly reports
|
Co-Transfer Agent
and Registrar
Computershare
P.O. Box 505000
Louisville, KY
40233
or
Computershare
462 South
4th Street, Suite 1600
Louisville, KY
40202
1-866-233-4836
TDD for hearing
impaired: 1-800-231-5469
Shareholders outside
of U.S.: 201-680-6578
TDD shareholders
outside of U.S.: 201-680-6610
www.computershare.com
|
Beneficially
own TD shares that are held in
the name of an intermediary, such as a bank,
a trust company, a securities broker or other
nominee
|
Your TD shares,
including questions regarding the
dividend reinvestment plan and mailings of shareholder
materials
|
Your
intermediary
|
For all other shareholder inquiries, please contact TD
Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email
tdshinfo@td.com.
Please note that by leaving us an e-mail or voicemail message, you
are providing your consent for us to forward your inquiry to the
appropriate party for response.
Normal Course Issuer Bid
On September 18, 2017, the Bank announced that the
TSX and OSFI approved the Bank's amended NCIB to repurchase for
cancellation up to an additional 20 million of the Bank's common
shares. Pursuant to the amended Notice of Intention filed with the
TSX, the NCIB ends on March 20, 2018,
such earlier date as the Bank may determine or such earlier date as
the Bank may complete its purchases. A copy of the Notice may be
obtained without charge by contacting TD Shareholder Relations by
phone at 416-944-6367 or 1-866-756-8936 or by e-mail at
tdshinfo@td.com.
Annual Report on Form 40-F (U.S.)
A copy of the Bank's
Annual Report on Form 40-F for fiscal 2017 will be filed with the
Securities and Exchange Commission later today and will be
available at http://www.td.com. You may obtain a printed copy of
the Bank's Annual Report on Form 40-F for fiscal 2017 free of
charge upon request to TD Shareholder Relations at
416-944-6367 or 1-866-756-8936 or e-mail tdshinfo@td.com.
Access to Quarterly Results Materials
Interested investors, the media, and others may view this fourth
quarter earnings news release, results slides, supplementary
financial information, and the 2017 Consolidated Financial
Statements and MD&A documents on the TD website at
www.td.com/investor/.
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 hearing impaired (TTY): 1-800-361-1180
Website: www.td.com
Email: customer.service@td.com
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on November 30, 2017. The call will be available
live via TD's website at 1:30 p.m. ET. The call and audio
webcast will feature presentations by TD executives on the Bank's
financial results for the fourth quarter, discussions of related
disclosures, and will be followed by a question-and-answer period
with analysts. The presentation material referenced during the call
will be available on the TD website at
www.td.com/investor/qr_2017.jsp on November
30, 2017, by approximately 12 p.m.
ET. A listen-only telephone line is available at
416-640-5942 or 1-800-289-0438 (toll free) and the passcode is
5768293.
The audio webcast and presentations will be archived at
www.td.com/investor/qr_2017.jsp. Replay of the teleconference will
be available from 6 p.m. ET on
November 30, 2017, until 6 p.m. ET on December 29,
2017, by calling 647-436-0148 or 1-888-203-1112 (toll free).
The passcode is 5768293.
Annual Meeting
Thursday, March 29, 2018
Design Exchange
Toronto, Ontario
About TD Bank Group
The Toronto-Dominion Bank and its
subsidiaries are collectively known as TD Bank Group ("TD" or the
"Bank"). TD is the sixth largest bank in North America by branches and serves more than
25 million customers in three key businesses operating in a number
of locations in financial centres around the globe: Canadian
Retail, including TD Canada Trust, TD Auto Finance Canada, TD
Wealth (Canada), TD Direct
Investing, and TD Insurance; U.S. Retail, including TD Bank,
America's Most Convenient Bank®, TD Auto Finance
U.S., TD Wealth (U.S.), and an investment in TD Ameritrade; and
Wholesale Banking, including TD Securities. TD also ranks
among the world's leading online financial services firms, with
approximately 11.5 million active online and mobile customers.
TD had $1.3 trillion in assets
on October 31, 2017. The
Toronto-Dominion Bank trades under the symbol "TD" on the
Toronto and New York Stock
Exchanges.
SOURCE TD Bank Group