TORONTO, July 19, 2021 /CNW/ - TD Bank Group (the
"Bank") announced today that it expects The Charles Schwab
Corporation's ("Schwab") second quarter earnings to translate into
approximately CDN $170 million of reported equity in net
income of an investment in Schwab for the Bank's fiscal 2021 third
quarter. Excluding acquisition-related charges of approximately
CDN $18 million after-tax and amortization of acquired
intangibles of approximately CDN $33
million after-tax, adjusted equity in net income of an
investment in Schwab will be approximately CDN $221 million.
TD Bank Group will release its third quarter financial results
and host an earnings conference call on August 26, 2021. Conference call and audio
webcast details will be announced closer to that date.
Caution Regarding Use of Non-GAAP Information
The Bank's financial results are prepared in accordance with
International Financial Reporting Standards (IFRS), the current
generally accepted accounting principles (GAAP). The Bank 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
overall Bank 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. As explained, adjusted
results are different from reported results determined in
accordance with IFRS. Adjusted results, items of note, and related
terms used herein are not defined terms under IFRS and, therefore,
may not be comparable to similar terms used by other issuers.
Please refer to the "Financial Results Overview – How the Bank
Reports" section of the Bank's 2020 Management's Discussion and
Analysis (MD&A), as may be updated in subsequently filed
quarterly reports to shareholders, for a reconciliation between the
Bank's reported and adjusted results.
Caution Regarding Forward-Looking Information
From time to time, The Toronto-Dominion Bank (the "Bank" or
"TD") 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, statements made in the Bank's
Management's Discussion and Analysis for the quarter
ended April 30, 2021 under the heading "How we
Performed", including under the sub-headings "Economic Summary and
Outlook" and "The Bank's Response to COVID-19" and under the
heading "Managing Risk", statements made in the Bank's Management's
Discussion and Analysis ("2020 MD&A") in the Bank's 2020 Annual
Report under the headings "Economic Summary and Outlook" and "The
Bank's Response to COVID-19", for the Canadian Retail, U.S. Retail,
and Wholesale Banking segments under headings "Key Priorities for
2021", and for the Corporate segment, "Focus for 2021", and in
other statements regarding the Bank's objectives and priorities for
2021 and beyond and strategies to achieve them, the regulatory
environment in which the Bank operates, the Bank's anticipated
financial performance, and the potential economic, financial and
other impacts of the Coronavirus Disease 2019 (COVID-19).
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:
strategic, credit, market (including equity, commodity, foreign
exchange, interest rate, and credit spreads), operational
(including technology, cyber security, and infrastructure), model,
insurance, liquidity, capital adequacy, legal, regulatory
compliance and conduct, reputational, environmental and social, and
other risks. Examples of such risk factors include the economic,
financial, and other impacts of the COVID-19 pandemic; general
business and economic conditions in the regions in which the Bank
operates; geopolitical risk; the ability of the Bank to execute on
long-term strategies and shorter-term key strategic priorities,
including the successful completion of acquisitions and
dispositions, business retention plans, and strategic plans;
technology and cyber security risk (including cyber-attacks or data
security breaches) on the Bank's information technology, internet,
network access or other voice or data communications systems or
services; model risk; fraud 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, and other risks arising from the Bank's use of
third-party service providers; the impact of new and changes to, or
application of, current laws and regulations, including without
limitation tax laws, capital guidelines and liquidity regulatory
guidance and the bank recapitalization "bail-in" regime; regulatory
oversight and compliance risk; increased competition from
incumbents and new entrants (including Fintechs and big technology
competitors); shifts in consumer attitudes and disruptive
technology; environmental and social risk; exposure related to
significant litigation and regulatory matters; ability of the Bank
to attract, develop, and retain key talent; 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; Interbank Offered Rate (IBOR) transition
risk; critical accounting estimates and changes to accounting
standards, policies, and methods used by the Bank; existing and
potential international debt crises; environmental and social risk;
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 2020
MD&A, as may be updated in subsequently filed quarterly reports
to shareholders and news releases (as applicable) related to any
events or transactions discussed under the heading "Significant and
Subsequent Events and Pending Acquisitions" in the relevant
MD&A, which applicable releases may be found
on www.td.com. All such factors, as well as other
uncertainties and potential events, and the inherent uncertainty of
forward-looking statements, should be considered carefully 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 2020
MD&A under the headings "Economic Summary and Outlook" and "The
Bank's Response to COVID-19", for the Canadian Retail, U.S. Retail,
and Wholesale Banking segments, "Key Priorities for 2021", and for
the Corporate segment, "Focus for 2021", 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.
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 fifth
largest bank in North America by assets and serves over
26 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 The Charles Schwab
Corporation; and Wholesale Banking, including TD Securities. TD
also ranks among the world's leading online financial services
firms, with more than 15 million active online and mobile
customers. TD had CDN$1.7 trillion in assets
on April 30, 2021. The Toronto-Dominion Bank trades under the
symbol "TD" on the Toronto and New York Stock
Exchanges.
SOURCE TD Bank Group