Earnings News Release • Three and
Twelve months ended October 31,
2023
This quarterly earnings
news release should be read in conjunction with the Bank's
unaudited fourth quarter 2023 consolidated financial results for
the year ended October 31, 2023, included in this Earnings News
Release and the audited 2023 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,
2023. 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 revised
to conform to the presentation adopted in the current period.
Additional information including the 2023 MD&A relating to the
Bank is available on the Bank'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 results are
non-GAAP financial measures. For additional information about the
Bank's use of non-GAAP financial measures, refer to "Non-GAAP and
Other Financial Measures" in the "How We Performed" section of this
document.
|
FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth
quarter last year:
- Reported diluted earnings per share were $1.49, compared with $3.62.
- Adjusted diluted earnings per share were $1.83, compared with $2.18.
- Reported net income was $2,886
million, compared with $6,671
million.
- Adjusted net income was $3,505
million, compared with $4,065
million.
FULL YEAR FINANCIAL HIGHLIGHTS, compared with last
year:
- Reported diluted earnings per share were $5.60, compared with $9.47.
- Adjusted diluted earnings per share were $7.99, compared with $8.36.
- Reported net income was $10,782
million, compared with $17,429
million.
- Adjusted net income was $15,143
million, compared with $15,425
million.
FOURTH QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The fourth quarter reported earnings figures included the
following items of note:
- Amortization of intangibles of $92
million ($83 million after-tax
or 4 cents per share), compared with
$57 million ($51 million after-tax or 3
cents per share) in the fourth quarter last year.
- Acquisition and integration charges related to the Schwab
transaction of $31 million
($26 million after-tax or
1 cent per share), compared
with $18 million ($16 million after-tax or 1
cent per share) in the fourth quarter last year.
- Share of restructuring charges from investment in Schwab of
$35 million ($35 million after-tax or 2
cents per share).
- Restructuring charges of $363
million ($266 million
after-tax or 15 cents per
share).
- Acquisition and integration charges primarily related to the
Cowen acquisition of $197 million
($161 million after-tax or
9 cents per share).
- Residual impact from the terminated First Horizon
acquisition-related capital hedging strategy, net loss of
$64 million ($48 million after-tax or 3
cents per share).
TORONTO, Nov. 30,
2023 /CNW/ - TD Bank Group ("TD" or the "Bank") today
announced its financial results for the fourth quarter ended
October 31, 2023. Reported earnings
were $2.9 billion, down 57% compared
with the fourth quarter last year, and adjusted earnings were
$3.5 billion, down 14%.
"TD delivered strong revenue growth this quarter, reflecting
positive underlying business momentum and the benefits of our
diversified business model," said Bharat Masrani, Group President
and CEO, TD Bank Group. "In a complex operating environment, we
continued to adapt, invest in new capabilities and take important
steps to deliver efficiencies and drive growth across the
Bank."
Canadian Personal and Commercial Banking delivered a strong
quarter supported by net interest margin expansion and volume
growth
Canadian Personal and Commercial Banking net income was
$1,679 million, a decline of 1%
compared to the fourth quarter last year. The decrease primarily
reflects higher provisions for credit losses (PCL) and expenses,
partially offset by revenue growth. Revenue was $4,754 million, an increase of 7%, reflecting
volume growth and higher margins. The segment delivered its tenth
quarter of positive operating leverage in a row.
Canadian Personal and Commercial Banking continued to deliver
growth, driven by a record quarter for New to Canada account openings. This quarter, TD
launched a First Home Savings Account to enable customers to invest
tax-free for a down payment on their first home. In addition, TD
was recognized by Rewards Canada readers with more credit card and
loyalty program awards than any other card issuer, with the Bank
taking first place in four of seven categories1.
_____________________________
|
1 Canada's
Choice 2023 Winners:
https://www.rewardscanada.ca/canadaschoice/#results.
|
The U.S. Retail Bank continued to show operating momentum in
a challenging environment
U.S. Retail reported net income of $1,280
million, a decrease of 17% (19% in U.S. dollars) compared
with the fourth quarter last year. On an adjusted basis net income
was $1,280 million, a decline of 19%
(21% in U.S. dollars). Prior year reported net income included
charges for the terminated First Horizon transaction. TD Bank's
investment in The Charles Schwab Corporation ("Schwab") contributed
$197 million in earnings, a decrease
of 36% (38% in U.S. dollars) compared with the fourth quarter last
year.
The U.S. Retail Bank, which excludes the Bank's investment in
Schwab, reported net income of $1,083
million (US$800 million), a
decrease of 12% (14% in U.S. dollars) from the fourth quarter last
year, primarily reflecting higher non-interest expenses, higher
PCL, and lower revenue. On an adjusted basis net income was
$1,083 million (US$800 million), a decrease of 15% (17% in U.S.
dollars) from the fourth quarter last year. Prior year reported net
income included charges for the terminated First Horizon
transaction.
The U.S. Retail Bank continued its loan growth momentum, with
total average loan balances up 10% compared with the fourth quarter
last year and up 2% from last quarter. This reflects new customer
acquisition, deepening relationships in core franchise businesses,
and slower payment rates in the high interest rate environment.
Total personal and business deposit average balances were down 4%
compared with the fourth quarter last year amid competitive market
conditions. Personal and business deposit average balances
increased 1% quarter over quarter, reflecting account acquisitions
in term deposit and chequing products.
During the quarter, TD Bank, America's Most Convenient
Bank® (TD AMCB) welcomed new customers and further
strengthened its store network, opening six new stores, including
one in a low- and moderate-income area. TD AMCB also introduced
overdraft grace period alerts to help customers better manage their
finances. For the seventh consecutive year, TD AMCB ranked #1 in
its footprint by total number of approved U.S. Small Business
Administration (SBA) loan units and ranked as the #2 National SBA
Lender in 20232.
__________________________________________
|
2 U.S. Small
Business Administration (SBA) loan units in its Maine-to-Florida
footprint for the SBA's 2023 fiscal year.
|
Wealth Management and Insurance delivered solid
results
Wealth Management and Insurance net income was $501 million, a decrease of 3% compared with the
fourth quarter last year, primarily reflecting higher insurance
claims and related expenses, partially offset by higher revenues.
This quarter's revenue growth of 9% highlighted the strength of the
segment's diversified business model as higher insurance premiums
and fee-based revenue offset the impact of lower transaction
revenue. Insurance claims and related expenses rose 39%, mainly
reflecting increased severe weather-related events, inflation and
automobile thefts.
With continued focus on client-centric innovation, TD Direct
Investing launched TD Active Trader, the Bank's redesigned platform
for active traders, offering extensive order customization with
speed and reliability. TD Active Trader joins the Bank's suite of
leading trading platforms. TD Private Wealth Management continues
to accelerate the expansion of its advice teams while deepening
relationships with existing TD clients, which translated into
market share growth. TD Insurance introduced a new digital quoter
for Small Business Insurance to better serve small business owners
in their channel of choice.
Challenging quarter for Wholesale Banking
Wholesale Banking reported net income for the quarter was
$17 million, down $244 million or 93% compared to the fourth
quarter last year. The results reflect higher non-interest
expenses, which include acquisition and integration costs,
partially offset by higher revenues. On an adjusted basis, net
income was $178 million, a decrease of $97 million, or 35%. Revenue increased 28%,
reflecting the benefits of the Cowen Inc. acquisition and growth in
Global Markets and Corporate and Investment Banking in a
challenging market.
This quarter, the Wholesale Bank continued to demonstrate its
leadership in Environmental, Social, and Governance (ESG) and
deepened the Bank's commitment to a low carbon economy. TD
Securities agreed to purchase 27,500 metric tons of Direct Air
Capture (DAC) carbon dioxide removal credits over a four-year
period from STRATOS, 1PointFive's first DAC plant currently under
construction in Texas, subject to
STRATOS becoming operational. TD Securities also reached a
significant TD Cowen integration milestone, combining its U.S.
Institutional Equities and Convertibles businesses to deliver a
full-service North American equities platform to clients.
Shaping the future of banking
This quarter, the Bank launched TD Invent, an enterprise
approach to innovation that supports its forward-focused business
strategy and delivers new products and services for customers. This
integration of innovation and business strategies combined with the
Bank's Next Evolution of Work agile operating model powered the
recent redesign of TD's mobile banking app. Leveraging its North
American scale, TD introduced the redesigned app in both the U.S.
and Canada, strengthening digital
capabilities for more than 12 million North American mobile users.
The Bank was also recognized by Global Finance as "Best Consumer
Digital Bank in North America" for
the third year in a row.
Capital
TD's Common Equity Tier 1 Capital ratio was 14.4%.
Conclusion
For fiscal 2024, it will be challenging for the Bank to meet its
medium-term adjusted EPS growth target range of 7-10% and return on
equity target of 16+% as it navigates a complex macroeconomic
environment, expected further normalization in PCLs and critical
business investments.
"We enter 2024 from a position of strength, with proven
resiliency, a powerful brand, and a strong capital position," said
Masrani. "I want to thank our more than 95,000 colleagues across
the globe who bring TD's purpose to life every day."
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 ("2023 MD&A") in the
Bank's 2023 Annual Report under the heading "Economic Summary and
Outlook", under the headings "Key Priorities for 2024" and
"Operating Environment and Outlook" for the Canadian Personal and
Commercial Banking, U.S. Retail, Wealth Management and Insurance,
and Wholesale Banking segments, and under the heading "2023
Accomplishments and Focus for 2024" for the Corporate segment, and
in other statements regarding the Bank's objectives and priorities
for 2024 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: 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 general business and economic conditions in the
regions in which the Bank operates; geopolitical risk; inflation,
rising rates and recession; regulatory oversight and compliance
risk; the ability of the Bank to execute on long-term strategies,
shorter-term key strategic priorities, including the successful
completion of acquisitions and dispositions and integration of
acquisitions, the ability of the Bank to achieve its financial or
strategic objectives with respect to its investments, business
retention plans, and other strategic plans; technology and cyber
security risk (including cyber-attacks, data security breaches or
technology failures) on the Bank's technologies, systems and
networks, those of the Bank's customers (including their own
devices), and third parties providing services to the Bank; model
risk; fraud activity; 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 parties; the impact of new and
changes to, or application of, current laws, rules and regulations,
including without limitation tax laws, capital guidelines and
liquidity regulatory guidance; increased competition from
incumbents and new entrants (including Fintechs and big technology
competitors); shifts in consumer attitudes and disruptive
technology; environmental and social risk (including climate
change); 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 foreign
exchange rates, interest rates, credit spreads and equity prices;
the interconnectivity of Financial Institutions including existing
and potential international debt crises; 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; the economic, financial, and other
impacts of pandemics; 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 2023 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" 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. 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 2023 MD&A under the heading
"Economic Summary and Outlook", under the headings "Key Priorities
for 2024" and "Operating Environment and Outlook" for the Canadian
Personal and Commercial Banking, U.S. Retail, Wealth Management and
Insurance, and Wholesale Banking segments, and under the heading
"2023 Accomplishments and Focus for 2024" for the Corporate
segment, 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.
|
TABLE 1: FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
As at or for the
three months ended
|
|
As at or for the
twelve months ended
|
|
|
|
|
October
31
|
|
|
July 31
|
|
|
October 31
|
|
|
October
31
|
|
|
October 31
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Results of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue –
reported
|
$
|
13,121
|
|
$
|
12,779
|
|
$
|
15,563
|
|
$
|
50,492
|
|
$
|
49,032
|
|
Total revenue –
adjusted1
|
|
13,185
|
|
|
13,013
|
|
|
12,247
|
|
|
51,839
|
|
|
46,170
|
|
Provision for (recovery
of) credit losses
|
|
878
|
|
|
766
|
|
|
617
|
|
|
2,933
|
|
|
1,067
|
|
Insurance claims and
related expenses
|
|
1,002
|
|
|
923
|
|
|
723
|
|
|
3,705
|
|
|
2,900
|
|
Non-interest expenses –
reported
|
|
7,883
|
|
|
7,582
|
|
|
6,545
|
|
|
30,768
|
|
|
24,641
|
|
Non-interest expenses –
adjusted1
|
|
7,243
|
|
|
6,953
|
|
|
6,430
|
|
|
27,430
|
|
|
24,359
|
|
Net income –
reported
|
|
2,886
|
|
|
2,963
|
|
|
6,671
|
|
|
10,782
|
|
|
17,429
|
|
Net income –
adjusted1
|
|
3,505
|
|
|
3,731
|
|
|
4,065
|
|
|
15,143
|
|
|
15,425
|
|
Financial
positions (billions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans net of
allowance for loan losses
|
$
|
895.9
|
|
$
|
867.8
|
|
$
|
831.0
|
|
$
|
895.9
|
|
$
|
831.0
|
|
Total assets
|
|
1,957.0
|
|
|
1,887.1
|
|
|
1,917.5
|
|
|
1,957.0
|
|
|
1,917.5
|
|
Total
deposits
|
|
1,198.2
|
|
|
1,159.5
|
|
|
1,230.0
|
|
|
1,198.2
|
|
|
1,230.0
|
|
Total equity
|
|
112.1
|
|
|
112.7
|
|
|
111.4
|
|
|
112.1
|
|
|
111.4
|
|
Total risk-weighted
assets2
|
|
571.2
|
|
|
544.9
|
|
|
517.0
|
|
|
571.2
|
|
|
517.0
|
|
Financial
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common equity
(ROE) – reported3
|
|
|
10.6
|
%
|
|
11.2
|
%
|
|
26.5
|
%
|
|
10.1
|
%
|
|
18.0
|
%
|
|
Return on common equity
– adjusted1
|
|
|
13.0
|
|
|
14.1
|
|
|
16.0
|
|
|
14.4
|
|
|
15.9
|
|
Return on tangible
common equity (ROTCE)1
|
|
|
14.4
|
|
|
15.1
|
|
|
35.4
|
|
|
13.6
|
|
|
24.3
|
|
Return on tangible
common equity – adjusted1
|
|
|
17.2
|
|
|
18.6
|
|
|
21.2
|
|
|
18.9
|
|
|
21.2
|
|
Efficiency ratio –
reported3
|
|
|
60.1
|
|
|
59.3
|
|
|
42.1
|
|
|
60.9
|
|
|
50.3
|
|
Efficiency ratio –
adjusted1,3
|
|
|
54.9
|
|
|
53.4
|
|
|
52.5
|
|
|
52.9
|
|
|
52.8
|
|
Provision for (recovery
of) credit losses as a % of net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average loans and acceptances
|
|
0.39
|
|
|
0.35
|
|
|
0.29
|
|
|
0.34
|
|
|
0.14
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common share
information – reported (Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.49
|
|
$
|
1.57
|
|
$
|
3.62
|
|
$
|
5.61
|
|
$
|
9.48
|
|
Diluted
|
|
1.49
|
|
|
1.57
|
|
|
3.62
|
|
|
5.60
|
|
|
9.47
|
|
Dividends per
share
|
|
0.96
|
|
|
0.96
|
|
|
0.89
|
|
|
3.84
|
|
|
3.56
|
|
Book value per
share3
|
|
56.58
|
|
|
55.50
|
|
|
55.00
|
|
|
56.58
|
|
|
55.00
|
|
Closing share
price4
|
|
77.46
|
|
|
86.96
|
|
|
87.19
|
|
|
77.46
|
|
|
87.19
|
|
Shares outstanding
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average basic
|
|
1,806.3
|
|
|
1,834.8
|
|
|
1,812.1
|
|
|
1,822.5
|
|
|
1,810.5
|
|
Average diluted
|
|
1,807.8
|
|
|
1,836.3
|
|
|
1,814.4
|
|
|
1,824.4
|
|
|
1,813.6
|
|
End
of period
|
|
1,790.7
|
|
|
1,827.5
|
|
|
1,820.7
|
|
|
1,790.7
|
|
|
1,820.7
|
|
Market capitalization
(billions of Canadian dollars)
|
$
|
138.7
|
|
$
|
158.9
|
|
$
|
158.7
|
|
$
|
138.7
|
|
$
|
158.7
|
|
Dividend
yield3
|
|
4.7
|
%
|
|
4.7
|
%
|
|
4.2
|
%
|
|
4.6
|
%
|
|
3.8
|
%
|
Dividend payout
ratio3
|
|
64.1
|
|
|
60.9
|
|
|
24.6
|
|
|
68.3
|
|
|
37.5
|
|
Price-earnings
ratio3
|
|
13.8
|
|
|
11.3
|
|
|
9.2
|
|
|
13.8
|
|
|
9.2
|
|
Total shareholder
return (1 year)3
|
|
(6.9)
|
|
|
9.4
|
|
|
0.9
|
|
|
(6.9)
|
|
|
0.9
|
|
Common share
information – adjusted (Canadian
dollars)1,3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.83
|
|
$
|
1.99
|
|
$
|
2.18
|
|
$
|
8.00
|
|
$
|
8.38
|
|
Diluted
|
|
1.83
|
|
|
1.99
|
|
|
2.18
|
|
|
7.99
|
|
|
8.36
|
|
Dividend payout
ratio
|
|
52.1
|
%
|
|
48.1
|
%
|
|
40.8
|
%
|
|
47.9
|
%
|
|
42.5
|
%
|
Price-earnings
ratio
|
|
9.7
|
|
|
10.4
|
|
|
10.4
|
|
|
9.7
|
|
|
10.4
|
|
Capital
Ratios2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Capital ratio
|
|
|
14.4
|
%
|
|
15.2
|
%
|
|
16.2
|
%
|
14.4
|
14.4
|
%
|
|
16.2
|
%
|
Tier 1 Capital
ratio
|
|
|
16.2
|
|
|
17.2
|
|
|
18.3
|
|
16.2
|
16.2
|
|
|
18.3
|
|
Total Capital
ratio
|
|
|
18.1
|
|
|
19.6
|
|
|
20.7
|
|
18.1
|
18.1
|
|
|
20.7
|
|
Leverage
ratio
|
|
|
4.4
|
|
|
4.6
|
|
|
4.9
|
|
4.4
|
4.4
|
|
|
4.9
|
|
Total Loss Absorbing
Capacity (TLAC) ratio
|
|
|
32.7
|
|
|
35.0
|
|
|
35.2
|
|
32.7
|
32.7
|
|
|
35.2
|
|
TLAC Leverage
ratio
|
|
|
8.9
|
|
|
9.3
|
|
|
9.4
|
|
8.9
|
8.9
|
|
|
9.4
|
|
1
|
The Toronto-Dominion
Bank ("TD" or the "Bank") prepares its Consolidated Financial
Statements in accordance with IFRS, the current Generally Accepted
Accounting Principles (GAAP), and refers to results prepared in
accordance with IFRS as the "reported" results. The Bank also
utilizes non-GAAP financial measures such as "adjusted" results and
non-GAAP ratios to assess each of its businesses and to measure
overall Bank performance. To arrive at adjusted results, the Bank
adjusts reported results for "items of note". Refer to the "How We
Performed" section of this document for further explanation, a list
of the items of note, and a reconciliation of adjusted to reported
results. Non-GAAP financial measures and ratios used in this
document are not defined terms under IFRS and, therefore, may not
be comparable to similar terms used by other issuers.
|
2
|
These measures have
been included in this document in accordance with the Office of the
Superintendent of Financial Institutions Canada's (OSFI's) Capital
Adequacy Requirements, Leverage Requirements, and TLAC guidelines.
Refer to the "Capital Position" section in the 2023 MD&A for
further details.
|
3
|
For additional
information about this metric, refer to the Glossary in the 2023
MD&A, which is incorporated by reference.
|
4
|
Toronto Stock Exchange
closing market price.
|
SIGNIFICANT AND SUBSEQUENT EVENTS
a) Restructuring Charges
The Bank
undertook certain measures in the fourth quarter of 2023 to reduce
its cost base and achieve greater efficiency. In connection with
these measures, the Bank incurred $363
million of restructuring charges which primarily relate to
employee severance and other personnel-related costs, real estate
optimization, and asset impairments. The Bank expects to incur
additional restructuring charges of a similar magnitude in the
first half of calendar 2024.
b) Acquisition of Cowen Inc.
On
March 1, 2023, the Bank completed the acquisition of Cowen
Inc. ("Cowen"). The acquisition advances the Wholesale Banking
segment's long-term growth strategy in the U.S. and adds
complementary products and services to the Bank's existing
businesses. The results of the acquired business have been
consolidated by the Bank from the closing date and primarily
reported in the Wholesale Banking segment. Consideration included
$1,500 million (US$1,100 million) in cash for 100% of
Cowen's common shares outstanding, $253 million
(US$186 million) for the settlement of Cowen's Series A
Preferred Stock, and $205 million (US$151 million)
related to the replacement of share-based payment awards.
The acquisition was accounted for as a
business combination under the purchase method. The purchase price
allocation can be adjusted during the measurement period, which
shall not exceed one year from the acquisition date, to reflect new
information obtained about facts and circumstances. The acquisition
contributed $10,800 million
(US$7,933 million) of assets and
$9,884 million (US$7,261 million) of liabilities. The excess of
accounting consideration over the fair value of the tangible net
assets acquired is allocated to other intangible assets of
$298 million (US$219 million) net of taxes, and goodwill of
$744 million (US$546 million).
c) Termination of the Merger Agreement with
First Horizon Corporation
On May 4, 2023, the Bank and
First Horizon Corporation ("First Horizon" or "FHN") announced
their mutual decision to terminate the previously announced merger
agreement for the Bank to acquire First Horizon. Under the terms of
the termination agreement, the Bank made a $306 million
(US$225 million) cash payment to First Horizon on May 5,
2023. The termination payment was recognized in non-interest
expenses in the third quarter of fiscal 2023 and was reported in
the Corporate segment.
In connection with the transaction, the Bank
had invested US$494 million in non-voting First Horizon
preferred stock. During the second quarter of fiscal 2023, the Bank
recognized a valuation adjustment loss of $199 million (US$147
million) on this investment, recorded in other comprehensive
income (OCI). On June 26, 2023, in accordance with the
terms of the preferred share purchase agreement, the preferred
stock converted into approximately 19.7 million common shares
of First Horizon, resulting in the Bank recognizing a loss of
$166 million (US$126 million) during the third quarter of
fiscal 2023 in OCI based on First Horizon's common share price at
the time of conversion.
The Bank had also implemented a strategy to
mitigate the impact of interest rate volatility to capital on
closing of the acquisition. The Bank determined that the fair value
of First Horizon's fixed rate financial assets and liabilities and
certain intangible assets would have been sensitive to interest
rate changes. The fair value of net assets would have determined
the amount of goodwill to be recognized on closing of the
acquisition. Increases in goodwill and intangibles would have
negatively impacted capital ratios because they are deducted from
capital under OSFI Basel III rules. In order to mitigate this
volatility to closing capital, the Bank de-designated certain
interest rate swaps hedging fixed income investments in fair value
hedge accounting relationships.
As a result of the de-designation,
mark-to-market gains (losses) on these swaps were recognized in
earnings, without any corresponding offset from the previously
hedged investments. Such gains (losses) would have mitigated the
capital impact from changes in the amount of goodwill recognized on
closing of the acquisition. The de-designation also triggered the
amortization of the investments' basis adjustment to net interest
income over the remaining expected life of the investments.
Prior to the termination of the merger
agreement on May 4, 2023, for the year ended October 31, 2023, the Bank reported ($1,386) million in non-interest income
related to the mark-to-market on the swaps, and $262 million
in net interest income related to the basis adjustment
amortization. In addition, for the year ended October 31, 2023, the Bank reported
$585 million in non-interest income related to the net
interest earned on the swaps.
Following the announcement to terminate the
merger agreement, the Bank discontinued this strategy and
reinstated hedge accounting on the portfolio of fixed income
investments using new swaps entered into at higher market rates.
Income recognized from this strategy will reverse over time causing
a decrease to net interest income. For the year ended October 31, 2023, the decrease to net interest
income was ($127) million,
recorded in the Corporate segment.
The Bank had also implemented a strategy to
mitigate FX risk on the expected USD cash consideration. Following
the announcement to terminate the merger agreement, the Bank
discontinued this strategy. Given the appreciation of the U.S.
dollar during the life of the strategy, the Bank was in a net gain
position on the date of hedge termination and cumulative net gains
were recognized in accumulated other comprehensive income
(AOCI).
d) Implementation of the Canada Recovery
Dividend and Change in Corporate Tax Rate
On
December 15, 2022, Bill C-32, Fall Economic Statement
Implementation Act, 2022, received Royal
Assent. This bill enacted the Canada Recovery Dividend (CRD)
and increased the Canadian federal tax rate for bank and life
insurer groups by 1.5%.
The implementation of the CRD resulted in a
provision for income taxes of $553 million and a charge
to OCI of $239 million, recognized in the first quarter of
2023.
The increase in the Canadian federal tax
rate of 1.5%, prorated for the first taxation year that ends after
April 7, 2022, resulted in a provision for income taxes of
$82 million and a tax benefit of $75 million in OCI
related to fiscal 2022, recognized in the first quarter of 2023.
The Bank also remeasured certain Canadian deferred tax assets and
liabilities for the increase in tax rate, which resulted in an
increase in net deferred tax assets of $50
million, which is recorded in provision for income
taxes.
e) Stanford Litigation Settlement
In the
US Rotstain v. Trustmark National Bank, et al. action, on
February 24, 2023, the Bank reached a
settlement in principle (the "settlement" or "agreement") relating
to litigation involving the Stanford Financial Group (the
"Stanford litigation"), pursuant to
which the Bank agreed to pay US$1.205
billion to the court-appointed receiver for the Stanford
Receivership Estate. Under the terms of the agreement, TD has
settled with the receiver, the Official Stanford Investors
Committee, and other plaintiffs in the litigation and these parties
have agreed to release and dismiss all current or future claims
arising from or related to the Stanford
matter. As a result of this agreement, the Bank recorded a
provision of approximately $1.6
billion pre-tax ($1.2 billion
after-tax) in the first quarter of 2023. The Bank recognized a
foreign exchange loss of $39 million
($28 million after-tax) in the second
quarter of 2023, reflecting the impact of the difference between
the foreign exchange rate used for recording the provision
(effective January 31, 2023) and the
foreign exchange rate at the time the settlement was reached.
f) Federal Deposit Insurance Corporation
Special Assessment
On November 16,
2023, the Federal Deposit Insurance Corporation (FDIC)
announced a final rule that implements a special assessment to
recover the losses to the Deposit Insurance Fund arising from the
protection of uninsured depositors during the U.S. bank failures in
Spring 2023 (the "Special Assessment"). The Special Assessment is
expected to result in the recognition of a provision of
approximately US$300 million pre-tax
in the first quarter of the Bank's fiscal 2024.
HOW WE PERFORMED
Economic Summary and Outlook
The global economy
remains on track to slow in calendar 2023 and 2024, but to a lesser
extent than anticipated in the previous quarter. Inflation has
generally continued to cool across the G-7, and more central banks
have taken a pause on interest rate hikes. Central bankers will
remain vigilant on inflation and further rate hikes cannot be ruled
out, but most are fine-tuning interest rate adjustments at this
stage. The lagged impact of cumulative interest rate hikes is
expected to be the primary influence dampening economic growth and
returning inflation closer to the target ranges of the various
regions by the end of calendar 2024.
The U.S. economy expanded by 4.9% annualized
in the third calendar quarter of 2023. Underlying domestic demand
grew at an impressive 3.5% pace, as consumer spending accelerated
from a soft performance in the second calendar quarter. Government
spending accelerated, driven by an uptick in federal
defence spending. Housing activity also increased for the
first time in over two years, reflecting lower mortgage rates
earlier in the year. However, business investment weakened, after a
stronger-than-expected performance in the first half of calendar
2023.
As of October, the U.S. job market was still
tight with the unemployment rate still historically low at 3.9%.
However, there are signs that demand for workers is cooling, as
evidenced by both slower trend growth in payrolls and a slight
increase in the unemployment rate over the prior six months.
Although the downturn in total inflation has stalled in recent
months due to higher energy costs, core inflation measures have
continued to move lower. Underlying services prices continue to be
a source of persistent price pressure. Given that inflation remains
well above the U.S. Federal Reserve's 2% target, the central bank
remains highly attentive to upside risks.
TD Economics continues to believe there is a
chance the federal funds rate may rise a further quarter point from
its current range of 5.25-5.50% early in calendar 2024. The
economic environment remains fluid. If the central bank sees
evidence of further cooling in the labor market and is increasingly
confident that inflation is headed towards its 2% target, it could
opt to hold rates steady. Given the steep rise in interest rates
over the past year, the trend towards tighter U.S. credit and
financial conditions, and the likelihood of rolling periods of
financial stress related to risk factors, the probability of a
recession stateside remains elevated.
The Canadian economy has been affected by
numerous temporary economic events, which have contributed to
weakness in the economic activity data. Real GDP was nearly
unchanged in the second calendar quarter of 2023, reflecting softer
consumer spending and ongoing weakness in housing activity.
Business investment was one bright spot, as investment in
engineering structures and transportation equipment increased.
Despite signs of slowing in the Canadian
economy, progress on inflation has stalled in recent months. The
trend rate of job growth has slowed below that of the labour force,
pushing the unemployment rate higher. TD Economics expects the
unemployment rate to continue to move higher in the months ahead,
contributing to prolonged weakness in consumer spending. Given the
uncertainty surrounding the impact of substantial interest rate
hikes on highly indebted Canadian households, the risk of recession
also remains elevated in Canada.
The Bank of Canada has left the overnight interest rate
unchanged at 5.00% since July. However, it has expressed concern
about the persistence of underlying inflation. TD Economics does
not expect further interest rate hikes, but the incoming economic
data will determine whether more will be required in Canada to bring inflation down to the 2%
target. The Canadian dollar is expected to hover in the 72 to 74
U.S. cent range over the next few quarters.
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.
Non-GAAP and Other Financial Measures
In addition to
reported results, the Bank also presents certain financial
measures, including non-GAAP financial measures that are
historical, non-GAAP ratios, supplementary financial measures and
capital management measures, to assess its results. Non-GAAP
financial measures, such as "adjusted" results, are utilized to
assess the Bank's businesses and to measure the Bank's overall
performance. To arrive at adjusted results, the Bank adjusts for
"items of note", from reported results. Items of note are items
which management does not believe are indicative of underlying
business performance and are disclosed in Table 3. Non-GAAP ratios
include a non-GAAP financial measure as one or more of its
components. Examples of non-GAAP ratios include adjusted basic and
diluted earnings per share (EPS), adjusted dividend payout ratio,
adjusted efficiency ratio, and adjusted effective income tax rate.
The Bank believes that non-GAAP financial measures and non-GAAP
ratios provide the reader with a better understanding of how
management views the Bank's performance. Non-GAAP financial
measures and non-GAAP ratios used in this document are not defined
terms under IFRS and, therefore, may not be comparable to similar
terms used by other issuers. Supplementary financial measures
depict the Bank's financial performance and position, and capital
management measures depict the Bank's capital position, and both
are explained in this document where they first appear.
U.S. Strategic Cards
The Bank's U.S. strategic cards
portfolio is comprised of agreements with certain U.S. retailers
pursuant to which TD is the U.S. issuer of private label and
co-branded consumer credit cards to their U.S. customers. Under the
terms of the individual agreements, the Bank and the retailers
share in the profits generated by the relevant portfolios after
credit losses. Under IFRS, TD is required to present the gross
amount of revenue and provisions for credit losses (PCL) related to
these portfolios in the Bank's Consolidated Statement of Income. At
the segment level, the retailer program partners' share of revenues
and credit losses is presented in the Corporate segment, with an
offsetting amount (representing the partners' net share) recorded
in Non-interest expenses, resulting in no impact to Corporate's
reported Net income (loss). The Net income (loss) included in the
U.S. Retail segment includes only the portion of revenue and credit
losses attributable to TD under the agreements.
Investment in The Charles Schwab Corporation and IDA
Agreement
On October 6, 2020, the Bank acquired an
approximately 13.5% stake in The Charles Schwab Corporation
("Schwab") following the completion of Schwab's acquisition of TD
Ameritrade Holding Corporation ("TD Ameritrade") of which the Bank
was a major shareholder (the "Schwab transaction"). On
August 1, 2022, the Bank sold 28.4 million non-voting
common shares of Schwab, at a price of US$66.53 per share for proceeds of $2.5 billion (US$1.9
billion), which reduced the Bank's ownership interest in
Schwab to approximately 12.0%. The Bank recognized $997 million as other income (net of $368 million loss from AOCI reclassified to
earnings), in the fourth quarter of fiscal 2022.
The Bank accounts for its investment in
Schwab using the equity method. The U.S. Retail segment reflects
the Bank's share of net income from its investment in Schwab. The
Corporate segment net income (loss) includes amounts for
amortization of acquired intangibles, the acquisition and
integration charges related to the Schwab transaction, and the
Bank's share of restructuring charges incurred by Schwab. The
Bank's share of Schwab's earnings available to common shareholders
is reported with a one-month lag. For further details, refer to
Note 12 of the 2023 Consolidated Financial Statements.
On November 25, 2019, the Bank and
Schwab signed an insured deposit account agreement (the "2019
Schwab IDA Agreement"), with an initial expiration date of
July 1, 2031. Under the 2019 Schwab IDA Agreement, starting
July 1, 2021, Schwab had the option
to reduce the deposits by up to US$10
billion per year (subject to certain limitations and
adjustments), with a floor of US$50
billion. In addition, Schwab requested some further
operational flexibility to allow for the sweep deposit balances to
fluctuate over time, under certain conditions and subject to
certain limitations. Refer to the "Related Party Transactions"
section in the 2023 MD&A for further details.
On May 4, 2023, the Bank and Schwab
entered into an amended insured deposit account agreement (the
"2023 Schwab IDA Agreement" or the "Schwab IDA Agreement"), which
replaced the 2019 Schwab IDA Agreement. Pursuant to the 2023 Schwab
IDA Agreement, the Bank continues to make sweep deposit accounts
available to clients of Schwab. Schwab designates a portion of the
deposits with the Bank as fixed-rate obligation amounts (FROA).
Remaining deposits over the minimum level of FROA are designated as
floating-rate obligations. In comparison to the 2019 Schwab IDA
Agreement, the 2023 Schwab IDA Agreement extends the initial
expiration date by three years to July 1,
2034 and provides for lower deposit balances in its first
six years, followed by higher balances in the later years.
Specifically, until September 2025, the aggregate FROA will
serve as the floor. Thereafter, the floor will be set at
US$60 billion. In addition, Schwab
has the option to buy down up to $6.8
billion (US$5 billion) of FROA
by paying the Bank certain fees in accordance with the 2023 Schwab
IDA Agreement, subject to certain limits.
During the year ended October 31, 2023, Schwab exercised its option to
buy down $6.1 billion (US$4.5 billion) of FROA and paid
$305 million (US$227 million) in
termination fees to the Bank in accordance with the 2023 Schwab IDA
Agreement. The fees are intended to compensate the Bank for losses
incurred this year from discontinuing certain hedging
relationships, as well as for lost revenues. The net impact is
recorded in net interest income.
The following table provides the operating results on a reported
basis for the Bank.
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
|
|
|
|
2023
|
2023
|
2022
|
2023
|
2022
|
|
Net interest
income
|
$
|
7,494
|
$
|
7,289
|
$
|
7,630
|
$
|
29,944
|
$
|
27,353
|
|
Non-interest
income
|
|
5,627
|
|
5,490
|
|
7,933
|
|
20,548
|
|
21,679
|
|
Total
revenue
|
|
13,121
|
|
12,779
|
|
15,563
|
|
50,492
|
|
49,032
|
|
Provision for (recovery
of) credit losses
|
|
878
|
|
766
|
|
617
|
|
2,933
|
|
1,067
|
|
Insurance claims and
related expenses
|
|
1,002
|
|
923
|
|
723
|
|
3,705
|
|
2,900
|
|
Non-interest
expenses
|
|
7,883
|
|
7,582
|
|
6,545
|
|
30,768
|
|
24,641
|
|
Income before income
taxes and share of net income from
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in
Schwab
|
|
3,358
|
|
3,508
|
|
7,678
|
|
13,086
|
|
20,424
|
|
Provision for (recovery
of) income taxes
|
|
628
|
|
727
|
|
1,297
|
|
3,168
|
|
3,986
|
|
Share of net income
from investment in Schwab
|
|
156
|
|
182
|
|
290
|
|
864
|
|
991
|
|
Net income –
reported
|
|
2,886
|
|
2,963
|
|
6,671
|
|
10,782
|
|
17,429
|
|
Preferred dividends and
distributions on other equity instruments
|
|
196
|
|
74
|
|
107
|
|
563
|
|
259
|
|
Net income available
to common shareholders
|
$
|
2,690
|
$
|
2,889
|
$
|
6,564
|
$
|
10,219
|
$
|
17,170
|
|
The following table provides a reconciliation between the Bank's
adjusted and reported results. For further details refer to the
"Significant and Subsequent Events" or "How the Bank Reports"
sections.
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
|
|
|
2023
|
2023
|
2022
|
2023
|
2022
|
|
Operating results –
adjusted
|
|
|
|
|
|
|
|
|
|
|
|
Net interest
income6
|
$
|
7,558
|
$
|
7,364
|
$
|
7,627
|
$
|
30,394
|
$
|
27,307
|
|
Non-interest
income1,6
|
|
5,627
|
|
5,649
|
|
4,620
|
|
21,445
|
|
18,863
|
|
Total
revenue
|
|
13,185
|
|
13,013
|
|
12,247
|
|
51,839
|
|
46,170
|
|
Provision for (recovery
of) credit losses
|
|
878
|
|
766
|
|
617
|
|
2,933
|
|
1,067
|
|
Insurance claims and
related expenses
|
|
1,002
|
|
923
|
|
723
|
|
3,705
|
|
2,900
|
|
Non-interest
expenses2
|
|
7,243
|
|
6,953
|
|
6,430
|
|
27,430
|
|
24,359
|
|
Income before income
taxes and share of net income from
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in
Schwab
|
|
4,062
|
|
4,371
|
|
4,477
|
|
17,771
|
|
17,844
|
|
Provision for (recovery
of) income taxes
|
|
791
|
|
868
|
|
747
|
|
3,701
|
|
3,595
|
|
Share of net income
from investment in Schwab3
|
|
234
|
|
228
|
|
335
|
|
1,073
|
|
1,176
|
|
Net income –
adjusted
|
|
3,505
|
|
3,731
|
|
4,065
|
|
15,143
|
|
15,425
|
|
Preferred dividends and
distributions on other equity instruments
|
|
196
|
|
74
|
|
107
|
|
563
|
|
259
|
|
Net income available
to common shareholders – adjusted
|
|
3,309
|
|
3,657
|
|
3,958
|
|
14,580
|
|
15,166
|
|
Pre-tax adjustments
for items of note
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles4
|
|
(92)
|
|
(88)
|
|
(57)
|
|
(313)
|
|
(242)
|
|
Acquisition and
integration charges related to the Schwab
transaction5
|
|
(31)
|
|
(54)
|
|
(18)
|
|
(149)
|
|
(111)
|
|
Share of restructuring
charges from investment in Schwab5
|
|
(35)
|
|
–
|
|
–
|
|
(35)
|
|
–
|
|
Restructuring
charges2
|
|
(363)
|
|
–
|
|
–
|
|
(363)
|
|
–
|
|
Acquisition and
integration-related charges2
|
|
(197)
|
|
(143)
|
|
(18)
|
|
(434)
|
|
(18)
|
|
Charges related to the
terminated FHN acquisition2
|
|
–
|
|
(84)
|
|
(67)
|
|
(344)
|
|
(96)
|
|
Payment related to the
termination of the FHN transaction2
|
|
–
|
|
(306)
|
|
–
|
|
(306)
|
|
–
|
|
Impact from the
terminated FHN acquisition-related capital hedging
strategy6
|
|
(64)
|
|
(177)
|
|
2,319
|
|
(1,251)
|
|
1,641
|
|
Impact of retroactive
tax legislation on payment card clearing
services1
|
|
–
|
|
(57)
|
|
–
|
|
(57)
|
|
–
|
|
Litigation
(settlement)/recovery1,2
|
|
–
|
|
–
|
|
–
|
|
(1,642)
|
|
224
|
|
Gain on sale of Schwab
shares1
|
|
–
|
|
–
|
|
997
|
|
–
|
|
997
|
|
Less: Impact of
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
(9)
|
|
(13)
|
|
(6)
|
|
(42)
|
|
(26)
|
|
Acquisition and
integration charges related to the Schwab transaction
|
|
(5)
|
|
(10)
|
|
(2)
|
|
(25)
|
|
(16)
|
|
Restructuring
charges
|
|
(97)
|
|
–
|
|
–
|
|
(97)
|
|
–
|
|
Acquisition and
integration-related charges
|
|
(36)
|
|
(38)
|
|
(4)
|
|
(89)
|
|
(4)
|
|
Charges related to the
terminated FHN acquisition
|
|
–
|
|
(21)
|
|
(16)
|
|
(85)
|
|
(23)
|
|
Impact from the
terminated FHN acquisition-related capital hedging
strategy
|
|
(16)
|
|
(43)
|
|
578
|
|
(308)
|
|
405
|
|
Impact of retroactive
tax legislation on payment card clearing services
|
|
–
|
|
(16)
|
|
–
|
|
(16)
|
|
–
|
|
Litigation
(settlement)/recovery
|
|
–
|
|
–
|
|
–
|
|
(456)
|
|
55
|
|
CRD and federal tax
rate increase for fiscal 20227
|
|
–
|
|
–
|
|
–
|
|
585
|
|
–
|
|
Total adjustments
for items of note
|
|
(619)
|
|
(768)
|
|
2,606
|
|
(4,361)
|
|
2,004
|
|
Net income available
to common shareholders – reported
|
$
|
2,690
|
$
|
2,889
|
$
|
6,564
|
$
|
10,219
|
$
|
17,170
|
|
1
|
|
Adjusted non-interest
income excludes the following items of note:
|
|
|
i
|
Stanford litigation
settlement – 2023: $39 million. This reflects the foreign exchange
loss and is reported in the Corporate segment;
|
|
|
ii.
|
Settlement
of TD Bank, N.A. v. Lloyd's Underwriter et al., in
Canada pursuant to which the Bank recovered losses resulting from
the previous resolution of proceedings in the U.S. related to an
alleged Ponzi scheme perpetrated by Scott Rothstein – 2022:
$224 million, reported in the U.S. Retail segment;
|
|
|
iii.
|
Impact of retroactive
tax legislation on payment card clearing services – Q3 2023: $57
million, 2023: $57 million, reported in the Corporate segment;
and
|
|
|
iv.
|
The Bank sold 28.4
million non-voting common shares of Schwab and recognized a gain on
the sale – Q4 2022: $997 million, 2022: $997 million,
reported in the Corporate segment.
|
|
2
|
|
Adjusted non-interest
expenses exclude the following items of note:
|
|
|
i.
|
Amortization of
acquired intangibles – Q4 2023: $62 million, Q3 2023: $58 million,
2023: $193 million, Q4 2022: $24 million, 2022: $106 million,
reported in the Corporate segment;
|
|
|
ii.
|
The Bank's own
integration and acquisition costs related to the Schwab
transaction – Q4 2023: $18 million, Q3 2023: $38 million,
2023: $95 million, Q4 2022: $6 million,
2022: $62 million, reported in the Corporate
segment;
|
|
|
iii.
|
Acquisition and
integration-related charges – Q4 2023: $197 million, Q3 2023: $143
million, 2023: $434 million, Q4 2022: $18 million, 2022: $18
million, reported in the Wholesale segment.
|
|
|
iv.
|
Charges related to the
terminated First Horizon acquisition – Q3 2023: $84 million, 2023:
$344 million, Q4 2022: $67 million, 2022: $96 million, reported in
the U.S. Retail segment.
|
|
|
v.
|
Payment related to the
termination of the First Horizon transaction – Q3 2023: $306
million, 2023: $306 million, reported in the Corporate
segment;
|
|
|
vi.
|
Stanford litigation
settlement – 2023: $1,603 million, reported in the Corporate
segment; and
|
|
|
vii.
|
Restructuring charges –
Q4 2023: $363 million, 2023: $363 million, reported in the
Corporate segment.
|
|
3
|
|
Adjusted share of net
income from investment in Schwab excludes the following items of
note on an after-tax basis. The earnings impact of these items is
reported in the Corporate segment:
|
|
|
i.
|
Amortization
of Schwab-related acquired intangibles – Q4 2023:
$30 million, Q3 2023: $30 million, 2023:
$120 million, Q4 2022: $33 million, 2022:
$136 million;
|
|
|
ii.
|
The Bank's share of
acquisition and integration charges associated with Schwab's
acquisition of TD Ameritrade – Q4 2023: $13 million, Q3 2023:
$16 million, 2023: $54 million, Q4 2022:
$12 million, 2022: $49 million; and
|
|
|
iii.
|
The Bank's share of
restructuring charges incurred by Schwab – Q4 2023: $35
million, 2023: $35 million.
|
|
4
|
|
Amortization of
acquired intangibles relates to intangibles acquired as a result of
asset acquisitions and business combinations, including the
after-tax amounts for amortization of acquired intangibles relating
to the Share of net income from investment in Schwab, reported in
the Corporate segment. Refer to footnotes 2 and 3 for
amounts.
|
|
5
|
|
Impact of charges
related to the Schwab investment includes the following components,
reported in the Corporate segment: i) the Bank's own integration
and acquisition costs related to the Schwab transaction, ii) the
Bank's share of acquisition and integration charges associated with
Schwab's acquisition of TD Ameritrade on an after-tax basis, and
iii) the Bank's share of restructuring charges incurred by Schwab
on an after-tax basis. Refer to footnotes 2 and 3 for
amounts.
|
|
6
|
|
Prior to May 4, 2023,
the impact shown covers periods before the termination of the First
Horizon transaction and includes the following components, reported
in the Corporate segment: i) mark-to-market gains (losses) on
interest rate swaps recorded in non-interest income – Q4 2023: nil,
Q3 2023: ($125) million, 2023: ($1,386) million, Q4 2022:
$2,208 million, 2022: $1,487 million, ii) basis
adjustment amortization related to de-designated fair value hedge
accounting relationships, recorded in net interest income – Q4
2023: nil, Q3 2023: $11 million, 2023: $262 million,
Q4 2022: $111 million, 2022: $154 million, and iii)
interest income (expense) recognized on the interest rate swaps,
reclassified from non-interest income to net interest income with
no impact to total adjusted net income – Q4 2023: nil, Q3 2023:
$23 million, 2023: $585 million, Q4 2022:
$108 million, 2022: $108 million. After the
termination of the merger agreement, the residual impact of the
strategy is reversed through net interest income – Q4 2023:
($64) million, Q3 2023: ($63) million, 2023:
($127) million.
|
|
7
|
|
CRD and impact from
increase in the Canadian federal tax rate for fiscal 2022
recognized in the first quarter of 2023, reported in the Corporate
segment.
|
TABLE 4:
RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER
SHARE1
|
|
(Canadian
dollars)
|
|
For the three months
ended
|
For the twelve
months ended
|
|
|
October
31
|
July 31
|
October 31
|
October
31
|
October 31
|
|
|
2023
|
2023
|
2022
|
2023
|
2022
|
|
Basic earnings per
share – reported
|
$
|
1.49
|
$
|
1.57
|
$
|
3.62
|
$
|
5.61
|
$
|
9.48
|
|
Adjustments for items
of note
|
|
0.34
|
|
0.42
|
|
(1.44)
|
|
2.39
|
|
(1.11)
|
|
Basic earnings per
share – adjusted
|
$
|
1.83
|
$
|
1.99
|
$
|
2.18
|
$
|
8.00
|
$
|
8.38
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings per
share – reported
|
$
|
1.49
|
$
|
1.57
|
$
|
3.62
|
$
|
5.60
|
$
|
9.47
|
|
Adjustments for items
of note
|
|
0.34
|
|
0.42
|
|
(1.44)
|
|
2.39
|
|
(1.10)
|
|
Diluted earnings per
share – adjusted
|
$
|
1.83
|
$
|
1.99
|
$
|
2.18
|
$
|
7.99
|
$
|
8.36
|
|
1
|
EPS is computed by
dividing net income available to common shareholders by the
weighted-average number of shares outstanding during the period.
Numbers may not add due to rounding.
|
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
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Provision for income
taxes – reported
|
$
|
628
|
|
$
|
727
|
|
$
|
1,297
|
|
$
|
3,168
|
|
$
|
3,986
|
|
Total adjustments
for items of note
|
|
163
|
|
|
141
|
|
|
(550)
|
|
|
533
|
|
|
(391)
|
|
Provision for income
taxes – adjusted
|
$
|
791
|
|
$
|
868
|
|
$
|
747
|
|
$
|
3,701
|
|
$
|
3,595
|
|
Effective income tax
rate – reported
|
|
18.7
|
%
|
|
20.7
|
%
|
|
16.9
|
%
|
|
24.2
|
%
|
|
19.5
|
%
|
Effective income tax
rate – adjusted1
|
|
19.5
|
|
|
19.9
|
|
|
16.7
|
|
|
20.8
|
|
|
20.1
|
|
1
|
For additional
information about this metric, refer to the Glossary in the 2023
MD&A.
|
RETURN ON COMMON EQUITY
The consolidated Bank ROE is calculated as reported net income
available to common shareholders as a percentage of average common
equity. The consolidated Bank adjusted ROE is calculated as
adjusted net income available to common shareholders as a
percentage of average common equity. Adjusted ROE is a non-GAAP
ratio, and can be utilized in assessing the Bank's use of
equity.
ROE for the business segments is calculated
as the segment net income attributable to common shareholders as a
percentage of average allocated capital. The Bank's methodology for
allocating capital to its business segments is largely aligned with
the common equity capital requirements under Basel III. Capital
allocated to the business segments increased to 11% Common Equity
Tier 1 (CET1) Capital effective the first quarter of 2023 compared
with 10.5% in fiscal 2022.
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
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Average common
equity
|
$
|
101,027
|
|
$
|
102,728
|
|
$
|
98,199
|
|
$
|
101,555
|
|
$
|
95,326
|
|
Net income available
to common shareholders – reported
|
|
2,690
|
|
|
2,889
|
|
|
6,564
|
|
|
10,219
|
|
|
17,170
|
|
Items of note, net of
income taxes
|
|
619
|
|
|
768
|
|
|
(2,606)
|
|
|
4,361
|
|
|
(2,004)
|
|
Net income available
to common shareholders – adjusted
|
$
|
3,309
|
|
$
|
3,657
|
|
$
|
3,958
|
|
$
|
14,580
|
|
$
|
15,166
|
|
Return on common
equity – reported
|
|
10.6
|
%
|
|
11.2
|
%
|
|
26.5
|
%
|
|
10.1
|
%
|
|
18.0
|
%
|
Return on common
equity – adjusted
|
|
13.0
|
|
|
14.1
|
|
|
16.0
|
|
|
14.4
|
|
|
15.9
|
|
RETURN ON TANGIBLE COMMON EQUITY
Tangible common
equity (TCE) is calculated as common shareholders' equity less
goodwill, imputed goodwill and intangibles on the investments in
Schwab and other acquired intangible assets, net of related
deferred tax liabilities. ROTCE is calculated as reported net
income available to common shareholders after adjusting for the
after-tax amortization of acquired intangibles, which are treated
as an item of note, as a percentage of average TCE. Adjusted ROTCE
is calculated using reported net income available to common
shareholders, adjusted for all items of note, as a percentage of
average TCE. TCE, ROTCE, and adjusted ROTCE can be utilized in
assessing the Bank's use of equity. TCE is a non-GAAP financial
measure, and ROTCE and adjusted ROTCE are non-GAAP ratios.
TABLE 7: RETURN ON
TANGIBLE 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
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
Average common
equity
|
$
|
101,027
|
|
$
|
102,728
|
|
$
|
98,199
|
|
$
|
101,555
|
|
$
|
95,326
|
|
Average
goodwill
|
|
18,217
|
|
|
18,018
|
|
|
17,334
|
|
|
17,919
|
|
|
16,803
|
|
Average imputed
goodwill and intangibles on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments in
Schwab
|
|
6,094
|
|
|
6,058
|
|
|
6,374
|
|
|
6,127
|
|
|
6,515
|
|
Average other acquired
intangibles1
|
|
635
|
|
|
683
|
|
|
463
|
|
|
584
|
|
|
492
|
|
Average related
deferred tax liabilities
|
|
(114)
|
|
|
(132)
|
|
|
(172)
|
|
|
(154)
|
|
|
(172)
|
|
Average tangible
common equity
|
|
76,195
|
|
|
78,101
|
|
|
74,200
|
|
|
77,079
|
|
|
71,688
|
|
Net income available to
common shareholders – reported
|
|
2,690
|
|
|
2,889
|
|
|
6,564
|
|
|
10,219
|
|
|
17,170
|
|
Amortization of
acquired intangibles, net of income taxes
|
|
83
|
|
|
75
|
|
|
51
|
|
|
271
|
|
|
216
|
|
Net income available
to common shareholders adjusted for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization of
acquired intangibles, net of income taxes
|
|
2,773
|
|
|
2,964
|
|
|
6,615
|
|
|
10,490
|
|
|
17,386
|
|
Other items of note,
net of income taxes
|
|
536
|
|
|
693
|
|
|
(2,657)
|
|
|
4,090
|
|
|
(2,220)
|
|
Net income available
to common shareholders – adjusted
|
$
|
3,309
|
|
$
|
3,657
|
|
$
|
3,958
|
|
$
|
14,580
|
|
$
|
15,166
|
|
Return on tangible
common equity
|
|
14.4
|
%
|
|
15.1
|
%
|
|
35.4
|
%
|
|
13.6
|
%
|
|
24.3
|
%
|
Return on tangible
common equity – adjusted
|
|
17.2
|
|
|
18.6
|
|
|
21.2
|
|
|
18.9
|
|
|
21.2
|
|
1
|
Excludes intangibles
relating to software and asset servicing rights.
|
IMPACT OF FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT
TRANSLATED EARNINGS
The following table reflects the
estimated impact of foreign currency translation on key U.S. Retail
segment income statement items. The impact is calculated as the
difference in translated earnings using the average US to Canadian
dollars exchange rates in the periods noted.
TABLE 8: IMPACT OF
FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT TRANSLATED
EARNINGS
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
For the three months
ended
|
For the twelve
months ended
|
|
|
|
October 31, 2023
vs.
|
October 31, 2023
vs.
|
|
|
|
October 31,
2022
|
October 31,
2022
|
|
|
|
Increase
(Decrease)
|
Increase
(Decrease)
|
|
U.S. Retail
Bank
|
|
|
|
|
|
|
|
|
Total revenue –
reported
|
|
|
$
|
69
|
|
$
|
657
|
|
Total revenue –
adjusted1
|
|
|
|
69
|
|
|
657
|
|
Non-interest expenses –
reported
|
|
|
|
40
|
|
|
370
|
|
Non-interest expenses –
adjusted1
|
|
|
|
40
|
|
|
351
|
|
Net income – reported,
after-tax
|
|
|
|
21
|
|
|
215
|
|
Net income – adjusted,
after-tax1
|
|
|
|
21
|
|
|
229
|
|
Share of net income
from investment in Schwab2
|
|
|
|
5
|
|
|
51
|
|
U.S. Retail segment
net income – reported, after-tax
|
|
|
|
26
|
|
|
266
|
|
U.S. Retail segment
net income – adjusted, after-tax1
|
|
|
|
26
|
|
|
280
|
|
Earnings per share
(Canadian dollars)
|
|
|
|
|
|
|
|
|
Basic –
reported
|
|
|
$
|
0.01
|
|
$
|
0.15
|
|
Basic –
adjusted1
|
|
|
|
0.01
|
|
|
0.15
|
|
Diluted –
reported
|
|
|
|
0.01
|
|
|
0.15
|
|
Diluted –
adjusted1
|
|
|
|
0.01
|
|
|
0.15
|
|
1
|
For additional
information about the Bank's use of non-GAAP financial measures,
refer to "Non-GAAP and Other Financial Measures" in the "How We
Performed" section of this document.
|
2
|
Share of net income
from investment in Schwab and the foreign exchange impact are
reported with a one-month lag.
|
|
|
|
|
Average foreign
exchange rate (equivalent of CAD $1.00)
|
For the three months
ended
|
For the twelve
months ended
|
|
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
|
|
2023
|
2022
|
2023
|
2022
|
|
U.S. dollar
|
0.736
|
0.751
|
0.741
|
0.777
|
|
|
|
|
|
|
|
HOW OUR BUSINESSES PERFORMED
For management reporting purposes, the Bank's operations and
activities are organized around the following four key business
segments: Canadian Personal and Commercial Banking, U.S. Retail,
Wealth Management and Insurance, 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 Note 28 of the
Bank's Consolidated Financial Statements for the year ended
October 31, 2023.
PCL related to performing (Stage 1 and Stage
2) and impaired (Stage 3) financial assets, loan commitments, and
financial guarantees is recorded within the respective segment.
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 results is reversed in the Corporate segment. The
TEB adjustment for the quarter was $44 million, compared with
$36 million in the fourth quarter last year, and
$40 million in the prior quarter.
Share of net income from investment in
Schwab is reported in the U.S. Retail segment. Amounts for
amortization of acquired intangibles, the Bank's share of
acquisition and integration charges associated with Schwab's
acquisition of TD Ameritrade, and the Bank's share of Schwab's
restructuring charges are recorded in the Corporate segment.
TABLE 9: CANADIAN
PERSONAL AND COMMERCIAL BANKING
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
|
For the three months
ended
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
|
2023
|
|
2023
|
|
2022
|
|
Net interest
income
|
$
|
3,705
|
|
$
|
3,571
|
|
$
|
3,388
|
|
Non-interest
income
|
|
1,049
|
|
|
999
|
|
|
1,066
|
|
Total
revenue
|
|
4,754
|
|
|
4,570
|
|
|
4,454
|
|
Provision for (recovery
of) credit losses – impaired
|
|
274
|
|
|
285
|
|
|
184
|
|
Provision for (recovery
of) credit losses – performing
|
|
116
|
|
|
94
|
|
|
45
|
|
Total provision for
(recovery of) credit losses
|
|
390
|
|
|
379
|
|
|
229
|
|
Non-interest
expenses
|
|
2,039
|
|
|
1,895
|
|
|
1,921
|
|
Provision for (recovery
of) income taxes
|
|
646
|
|
|
641
|
|
|
610
|
|
Net
income
|
$
|
1,679
|
|
$
|
1,655
|
|
$
|
1,694
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes and
ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity1
|
|
35.1
|
%
|
|
35.4
|
%
|
|
41.9
|
%
|
Net interest margin
(including on securitized assets)2
|
|
2.78
|
|
|
2.74
|
|
|
2.70
|
|
Efficiency
ratio
|
|
42.9
|
|
|
41.5
|
|
|
43.1
|
|
Number of Canadian
Retail branches at period end
|
|
1,062
|
|
|
1,060
|
|
|
1,060
|
|
Average number of
full-time equivalent staff
|
|
29,069
|
|
|
29,172
|
|
|
28,936
|
|
1
|
Capital allocated to
the business segment was increased to 11% CET1 Capital effective
the first quarter of fiscal 2023 compared with 10.5% in the prior
year.
|
2
|
Net interest margin is
calculated by dividing net interest income by average
interest-earning assets. Average interest-earning assets used in
the calculation of net interest margin is a non‑GAAP financial
measure. Refer to "Non-GAAP and Other Financial Measures" in the
"How We Performed" section of this document and the Glossary in the
2023 MD&A, for additional information about these
metrics.
|
Quarterly comparison – Q4 2023 vs. Q4 2022
Canadian Personal and Commercial Banking net income for the
quarter was $1,679 million, a
decrease of $15 million, or 1%, compared with the fourth
quarter last year, reflecting higher PCL and non-interest expenses,
partially offset by revenue growth. The annualized ROE for the
quarter was 35.1%, compared with 41.9%, in the fourth quarter last
year.
Revenue for the quarter was $4,754 million, an increase of
$300 million, or 7%, compared with the fourth quarter last
year.
Net interest income was $3,705 million, an increase of
$317 million, or 9%, reflecting volume growth and higher
margins. Average loan volumes increased $33 billion, or
6%, reflecting 6% growth in personal loans and 9% growth in
business loans. Average deposit volumes increased $9 billion,
or 2%, reflecting 5% growth in personal deposits, partially offset
by 3% decline in business deposits. Net interest margin was 2.78%,
an increase of 8 basis points (bps), primarily due to higher
margins on deposits reflecting rising interest rates, partially
offset by lower margin on loans.
Non-interest income was $1,049 million, a decrease of
$17 million, or 2%, compared with the fourth quarter last
year, reflecting lower fee revenue.
PCL for the quarter was $390 million, an increase of $161 million, compared with the fourth quarter
last year. PCL – impaired was $274
million, an increase of $90
million, or 49%, reflecting some normalization of credit
performance. PCL – performing was $116
million, an increase of $71
million. The performing provisions this quarter largely
reflect credit conditions, including some normalization of credit
performance in the consumer lending portfolios, credit migration in
the commercial lending portfolios, and volume growth. Total
PCL as an annualized percentage of credit volume was 0.28%, an
increase of 11 bps compared with the fourth quarter last year.
Non-interest expenses for the quarter were
$2,039 million, an increase of
$118 million, or 6%, compared with the fourth quarter last
year, primarily reflecting higher technology spend supporting
business growth and higher non-credit provisions.
The efficiency ratio for the quarter was
42.9%, compared with 43.1% in the fourth quarter last year.
Quarterly comparison – Q4 2023 vs. Q3 2023
Canadian Personal and Commercial Banking net income for the
quarter was $1,679 million, an
increase of $24 million, or 1%, compared with the prior
quarter, reflecting higher revenue, partially offset by higher
non-interest expenses and PCL. The annualized ROE for the
quarter was 35.1%, compared with 35.4% in the prior quarter.
Revenue increased $184 million, or 4%,
compared with the prior quarter. Net interest income increased
$134 million, or 4%, reflecting volume growth and higher
margins. Average loan volumes increased $13 billion, or 2%,
reflecting 3% growth in personal loans and 2% growth in business
loans. Average deposit volumes increased $5 billion, or 1%,
reflecting 1% growth in both personal deposits and business
deposits. Net interest margin was 2.78%, an increase of 4 bps, due
to higher margins on deposits reflecting tractor maturities,
partially offset by lower margin on loans.
Non-interest income increased $50 million, or 5%, compared with the prior
quarter, primarily reflecting a prior years' adjustment in the
prior quarter, partially offset by lower fee revenue.
PCL for the quarter was $390 million, increased by $11 million compared with the prior quarter. PCL
– impaired was $274 million, a
decrease of $11 million, or
4%. PCL – performing was $116
million, an increase of $22
million. The performing provisions this quarter largely
reflect credit conditions including some normalization of credit
performance in the consumer lending portfolios, credit migration in
the commercial lending portfolios, and volume growth. Total
PCL as an annualized percentage of credit volume was 0.28%, flat
compared with the prior quarter.
Non-interest expenses increased
$144 million, or 8%, compared with the prior quarter,
primarily reflecting higher non-credit provisions, higher marketing
and technology spend supporting business growth, and higher
employee-related expenses.
The efficiency ratio for the quarter was
42.9%, compared with 41.5% in the prior quarter.
TABLE 10: U.S.
RETAIL
|
|
|
|
|
|
|
|
|
|
(millions of dollars,
except as noted)
|
|
|
|
|
For the three months
ended
|
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
Canadian
Dollars
|
|
2023
|
|
|
2023
|
|
|
2022
|
|
Net interest
income
|
$
|
2,955
|
|
$
|
2,879
|
|
$
|
2,957
|
|
Non-interest
income
|
|
603
|
|
|
648
|
|
|
638
|
|
Total
revenue
|
|
3,558
|
|
|
3,527
|
|
|
3,595
|
|
Provision for (recovery
of) credit losses – impaired
|
|
308
|
|
|
259
|
|
|
166
|
|
Provision for (recovery
of) credit losses – performing
|
|
(19)
|
|
|
(10)
|
|
|
59
|
|
Total provision for
(recovery of) credit losses
|
|
289
|
|
|
249
|
|
|
225
|
|
Non-interest expenses –
reported
|
|
2,066
|
|
|
2,004
|
|
|
1,976
|
|
Non-interest expenses –
adjusted1,2
|
|
2,066
|
|
|
1,920
|
|
|
1,909
|
|
Provision for (recovery
of) income taxes – reported
|
|
120
|
|
|
151
|
|
|
165
|
|
Provision for (recovery
of) income taxes – adjusted1
|
|
120
|
|
|
172
|
|
|
181
|
|
U.S. Retail Bank net
income – reported
|
|
1,083
|
|
|
1,123
|
|
|
1,229
|
|
U.S. Retail Bank net
income – adjusted1
|
|
1,083
|
|
|
1,186
|
|
|
1,280
|
|
Share of net income
from investment in Schwab3,4
|
|
197
|
|
|
191
|
|
|
310
|
|
Net income –
reported
|
$
|
1,280
|
|
$
|
1,314
|
|
$
|
1,539
|
|
Net income –
adjusted1
|
|
1,280
|
|
|
1,377
|
|
|
1,590
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
2,178
|
|
$
|
2,157
|
|
$
|
2,220
|
|
Non-interest
income
|
|
444
|
|
|
485
|
|
|
479
|
|
Total
revenue
|
|
2,622
|
|
|
2,642
|
|
|
2,699
|
|
Provision for (recovery
of) credit losses – impaired
|
|
227
|
|
|
193
|
|
|
125
|
|
Provision for (recovery
of) credit losses – performing
|
|
(14)
|
|
|
(8)
|
|
|
44
|
|
Total provision for
(recovery of) credit losses
|
|
213
|
|
|
185
|
|
|
169
|
|
Non-interest expenses –
reported
|
|
1,520
|
|
|
1,502
|
|
|
1,482
|
|
Non-interest expenses –
adjusted1,2
|
|
1,520
|
|
|
1,439
|
|
|
1,432
|
|
Provision for (recovery
of) income taxes – reported
|
|
89
|
|
|
113
|
|
|
122
|
|
Provision for (recovery
of) income taxes – adjusted1
|
|
89
|
|
|
128
|
|
|
135
|
|
U.S. Retail Bank net
income – reported
|
|
800
|
|
|
842
|
|
|
926
|
|
U.S. Retail Bank net
income – adjusted1
|
|
800
|
|
|
890
|
|
|
963
|
|
Share of net income
from investment in Schwab3,4
|
|
146
|
|
|
142
|
|
|
237
|
|
Net income –
reported
|
$
|
946
|
|
$
|
984
|
|
$
|
1,163
|
|
Net income –
adjusted1
|
|
946
|
|
|
1,032
|
|
|
1,200
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes and
ratios
|
|
|
|
|
|
|
|
|
|
Return on common equity
– reported5
|
|
12.2
|
%
|
|
12.7
|
%
|
|
15.4
|
%
|
Return on common equity
– adjusted1,5
|
|
12.2
|
|
|
13.3
|
|
|
15.8
|
|
Net interest
margin1,6
|
|
3.07
|
|
|
3.00
|
|
|
3.13
|
|
Efficiency ratio –
reported
|
|
58.0
|
|
|
56.9
|
|
|
54.9
|
|
Efficiency ratio –
adjusted1
|
|
58.0
|
|
|
54.5
|
|
|
53.1
|
|
Assets under
administration (billions of U.S. dollars)7
|
$
|
37
|
|
$
|
36
|
|
$
|
34
|
|
Assets under management
(billions of U.S. dollars)7
|
|
33
|
|
|
37
|
|
|
33
|
|
Number of U.S. retail
stores
|
|
1,177
|
|
|
1,171
|
|
|
1,160
|
|
Average number of
full-time equivalent staff
|
|
28,287
|
|
|
28,485
|
|
|
26,710
|
|
1
|
For additional
information about the Bank's use of non-GAAP financial measures,
refer to "Non-GAAP and Other Financial Measures" in the "How We
Performed" section of this document.
|
2
|
Adjusted non-interest
expenses exclude the charges related to the terminated First
Horizon acquisition – Q3 2023: $84 million or
US$63 million ($63 million or US$48 million
after-tax); Q4 2022: $67 million or US$50 million
($51 million or US$37 million after-tax).
|
3
|
The Bank's share of
Schwab's earnings is reported with a one-month lag. Refer to Note
12 of the 2023 Consolidated Financial Statements for further
details.
|
4
|
The after-tax amounts
for amortization of acquired intangibles, the Bank's share of
acquisition and integration charges associated with Schwab's
acquisition of TD Ameritrade, and the Bank's share of Schwab's
restructuring charges are recorded in the Corporate
segment.
|
5
|
Capital allocated to
the business segment was increased to 11% CET1 Capital effective in
the first quarter of the fiscal 2023 compared with 10.5% in the
prior year.
|
6
|
Net interest margin is
calculated by dividing U.S. Retail segment's net interest income by
average interest-earning assets excluding the impact related to
sweep deposits arrangements and the impact of intercompany deposits
and cash collateral, which management believes better reflects
segment performance. In addition, the value of tax-exempt interest
income is adjusted to its equivalent before-tax value. Net
interest income and average interest-earning assets used in the
calculation are non-GAAP financial measures.
|
7
|
For additional
information about this metric, refer to the Glossary in the 2023
MD&A.
|
Quarterly comparison – Q4 2023 vs. Q4 2022
U.S. Retail reported net income for the quarter was $1,280 million (US$946 million), a
decrease of $259 million (US$217 million), or 17% (19% in
U.S. dollars) compared with the fourth quarter last year. On an
adjusted basis, net income for the quarter was $1,280 million (US$946 million), a
decrease of $310 million (US$254 million), or 19% (21% in
U.S. dollars). Reported net income in the fourth quarter last year
included acquisition and integration-related charges for the
terminated First Horizon transaction of $67
million (US$50 million) or
$51 million (US$37 million) after-tax. The reported and
adjusted annualized ROE for the quarter were 12.2%, compared with
15.4% and 15.8%, respectively, 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 Schwab. Reported net income for the quarter from the Bank's
investment in Schwab was $197 million (US$146 million), a
decrease of $113 million (US$91 million), or 36% (38% in
U.S. dollars), reflecting lower net interest revenue, lower bank
deposit account fees, and lower trading revenue as well as higher
expenses, partially offset by an increase in asset management and
administration fees.
U.S. Retail Bank reported net income was
$1,083 million
(US$800 million), a decrease of $146 million
(US$126 million), or 12% (14% in U.S. dollars), compared with
the fourth quarter last year, primarily reflecting higher
non-interest expenses, higher PCL, and lower revenue. Reported net
income in the fourth quarter last year included acquisition and
integration-related charges for the terminated First Horizon
transaction. U.S. Retail Bank adjusted net income was
$1,083 million
(US$800 million), a decrease of $197 million
(US$163 million), or 15% (17% in U.S. dollars), compared with
the fourth quarter last year, reflecting higher non-interest
expenses, higher PCL, and lower revenue.
U.S. Retail Bank revenue is derived from the
personal and business banking and wealth management businesses.
Revenue for the quarter was US$2,622 million, a decrease of
US$77 million, or 3%, compared with the fourth quarter last
year. Net interest income of US$2,178 million, decreased
US$42 million, or 2%, driven by lower deposit volumes and
lower margin on loans, partially offset by the benefit of higher
deposit margins from the rising rate environment and higher loan
volumes. Net interest margin of 3.07%, decreased 6 bps, as lower
margin on loans was partially offset by positive balance sheet mix.
Non-interest income of US$444 million decreased
US$35 million, or 7%, compared with the fourth quarter last
year, reflecting lower overdraft fees, partially offset by fee
income growth from increased customer activity.
Average loan volumes increased
US$18 billion, or 10%, compared with the fourth quarter last
year. Personal loans increased 12%, reflecting good originations
and slower payment rates across portfolios. Business loans
increased 9%, reflecting good originations from new customer
growth, higher commercial line utilization, and slower payment
rates. Average deposit volumes decreased US$44 billion, or 12%, reflecting a 4% decrease
in personal deposits, a 5% decrease in business deposits, and a 25%
decrease in sweep deposits.
Assets under administration (AUA) were
US$37 billion as at October 31, 2023, an increase of
US$3 billion, or 9%, compared with the fourth quarter last
year, reflecting net asset growth. Assets under Management (AUM)
were US$33 billion as at October 31, 2023, flat compared
with the fourth quarter last year.
PCL for the quarter was US$213 million,
an increase of US$44 million compared
with the fourth quarter last year. PCL – impaired was
US$227 million, an increase of US$102 million, or 82%,
reflecting some normalization of credit performance. PCL –
performing was a recovery of US$14 million, compared with a
build of US$44 million in the prior year. U.S. Retail PCL
including only the Bank's share of PCL in the U.S. strategic cards
portfolio, as an annualized percentage of credit volume was 0.46%,
an increase of 6 bps, compared with the fourth quarter last
year.
Reported non-interest expenses for the
quarter were US$1,520 million,
an increase of US$38 million, or 3%, compared with the fourth
quarter last year, reflecting higher legal expenses, regulatory
expenses and investments, higher employee-related expenses, and
higher FDIC assessment fees as a result of an increase to FDIC
assessment rates effective January 1,
2023, partially offset by acquisition and
integration-related charges for the terminated First Horizon
transaction in the fourth quarter last year. On an adjusted basis,
excluding acquisition and integration-related charges for the
terminated First Horizon transaction in the fourth quarter last
year, non-interest expenses increased US$88 million, or
6%.
The reported and adjusted efficiency ratios
for the quarter were 58.0%, compared with 54.9% and 53.1%,
respectively, in the fourth quarter last year.
Quarterly comparison – Q4 2023 vs. Q3 2023
U.S. Retail reported net income of $1,280 million (US$946 million)
decreased $34 million (US$38 million), or 3% (4% in U.S. dollars)
compared with the prior quarter. On an adjusted basis, net income
for the quarter was $1,280 million (US$946 million), a
decrease of $97 million (US$86 million), or 7% (8% in
U.S. dollars). Reported net income in the prior quarter
included acquisition and integration-related charges for the
terminated First Horizon transaction of $84 million
(US$63 million) or $63 million (US$48
million) after-tax. The reported and adjusted annualized ROE
for the quarter were 12.2%, compared with 12.7% and 13.3%,
respectively, in the prior quarter.
The contribution from Schwab of
$197 million (US$146 million), increased $6 million
(US$4 million), or 3% (3% in U.S. dollars), reflecting higher
asset management and administration fees and higher bank deposit
account fees, partially offset by lower net interest revenue and
lower trading revenue. U.S. Retail Bank reported net income was
$1,083 million
(US$800 million), a decrease of $40 million
(US$42 million), or 4% (5% in U.S. dollars), compared with the
prior quarter, reflecting higher non-interest expenses and higher
PCL, partially offset by higher revenue. U.S. Retail Bank adjusted
net income was $1,083 million
(US$800 million), a decrease of $103 million
(US$90 million), or 9% (10% in U.S. dollars), reflecting
higher non-interest expenses and higher PCL, partially offset by
higher revenue. Reported net income in the prior quarter included
acquisition and integration-related charges for the terminated
First Horizon transaction of $84 million (US$63 million)
or $63 million (US$48 million) after-tax.
Revenue decreased US$20 million, or 1%,
compared with the prior quarter. Net interest income of
US$2,178 million increased
US$21 million, or 1%, reflecting higher deposit margins and
higher loan volumes, partially offset by lower margin on loans. Net
interest margin of 3.07% increased 7 bps quarter over quarter,
as higher investment returns from matured tractors and positive
balance sheet mix with lower borrowings were partially offset by
migration to term deposits and high yield savings as well as
modestly lower loan margins. Non-interest income of
US$444 million decreased US$41 million, or 8%, reflecting
lower deposit-related fees and lower valuation on certain
investments.
Average loan volumes increased
US$5 billion, or 2%, compared with the prior quarter. Personal
loans increased 4%, reflecting good originations and slower payment
rates across portfolios. Business loans increased 1%, reflecting
good originations from new customer growth, higher commercial line
utilization, and slower payment rates. Average deposit volumes were
relatively flat compared with the prior quarter reflecting flat
personal deposits, a 2% increase in business deposits, and a 3%
decline in sweep deposits.
AUA were US$37 billion as at
October 31, 2023, an increase of US$1 billion, or 3%,
compared with the prior quarter, reflecting net asset growth. AUM
were US$33 billion as at October 31, 2023, a decrease of
US$4 billion, or 11%, reflecting market depreciation and net
asset outflows.
PCL for the quarter was US$213 million, an increase of US$28 million
compared with the prior quarter. PCL – impaired was US$227 million, an increase of
US$34 million, or 18%, reflecting some further normalization
of credit performance in the consumer lending portfolios. PCL –
performing was a recovery of US$14 million, compared with a
recovery of US$8 million in the prior quarter.
U.S. Retail PCL including only the Bank's share of PCL in the
U.S. strategic cards portfolio, as an annualized percentage of
credit volume was 0.46%, higher by 5 bps.
Reported non-interest expenses for the
quarter were US$1,520 million,
an increase of US$18 million, or 1%, reflecting higher legal
expenses, regulatory expenses and investments, and higher
employee-related expenses, partially offset by acquisition and
integration-related charges for the terminated First Horizon
transaction in the prior quarter. On an adjusted basis, excluding
acquisition and integration-related charges for the terminated
First Horizon transaction in the prior quarter, non-interest
expenses increased US$81 million, or 6%.
The reported and adjusted efficiency ratios
for the quarter were 58.0%, compared with 56.9% and 54.5%,
respectively, in the prior quarter.
TABLE 11: WEALTH
MANAGEMENT AND INSURANCE
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
|
For the three months
ended
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
|
2023
|
|
2023
|
|
2022
|
|
Net interest
income
|
$
|
261
|
|
$
|
256
|
|
$
|
272
|
|
Non-interest
income
|
|
2,603
|
|
|
2,523
|
|
|
2,359
|
|
Total
revenue
|
|
2,864
|
|
|
2,779
|
|
|
2,631
|
|
Provision for (recovery
of) credit losses – impaired
|
|
–
|
|
|
–
|
|
|
–
|
|
Provision for (recovery
of) credit losses – performing
|
|
–
|
|
|
–
|
|
|
–
|
|
Total provision for
(recovery of) credit losses
|
|
–
|
|
|
–
|
|
|
–
|
|
Insurance claims and
related expenses
|
|
1,002
|
|
|
923
|
|
|
723
|
|
Non-interest
expenses
|
|
1,191
|
|
|
1,170
|
|
|
1,208
|
|
Provision for (recovery
of) income taxes
|
|
170
|
|
|
182
|
|
|
184
|
|
Net
income
|
$
|
501
|
|
$
|
504
|
|
$
|
516
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes and
ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity1
|
|
36.1
|
%
|
|
35.3
|
%
|
|
39.5
|
%
|
Efficiency
ratio
|
|
41.6
|
|
|
42.1
|
|
|
45.9
|
|
Assets under
administration (billions of Canadian
dollars)2
|
$
|
531
|
|
$
|
559
|
|
$
|
517
|
|
Assets under management
(billions of Canadian dollars)
|
|
405
|
|
|
421
|
|
|
397
|
|
Average number of
full-time equivalent staff
|
|
15,569
|
|
|
15,892
|
|
|
15,952
|
|
1
|
Capital allocated to
the business segment was increased to 11% CET1 Capital effective
the first quarter of 2023 compared with 10.5% in the prior
year.
|
2
|
Includes AUA
administered by TD Investor Services, which is part of the Canadian
Personal and Commercial Banking segment.
|
Quarterly comparison – Q4 2023 vs. Q4 2022
Wealth Management and Insurance net income for the quarter was
$501 million, a decrease of $15 million, or 3%, compared
with the fourth quarter last year, reflecting higher insurance
claims and related expenses, partially offset by higher
non-interest income. The annualized ROE for the quarter was
36.1%, compared with 39.5%, in the fourth quarter last year.
Revenue for the quarter was $2,864 million, an increase of
$233 million, or 9%, compared with the fourth quarter last
year. Non-interest income was $2,603 million, an increase of
$244 million, or 10%, reflecting higher insurance premiums, an
increase in the fair value of investments supporting claims
liabilities which resulted in a similar increase in insurance
claims, and higher fee-based revenue, partially offset by lower
transaction revenue in the wealth management business. Net interest
income was $261 million, a decrease of $11 million, or
4%, reflecting lower deposit volumes, partially offset by higher
deposit margins in the wealth management business, and higher
investment income in the insurance business.
AUA were $531 billion as at
October 31, 2023, an increase of $14 billion, or 3%,
reflecting market appreciation and net asset growth. AUM were
$405 billion as at October 31, 2023, an increase of
$8 billion, or 2%, compared with last year, reflecting market
appreciation, partially offset by mutual fund redemptions.
Insurance claims and related expenses were
$1,002 million, an increase of
$279 million, or 39%, compared with the fourth quarter last
year, reflecting increased claims severity, more severe
weather-related events, and the impact of changes in the
discount rate which resulted in a similar increase in the fair
value of investments supporting claims liabilities reported in
non-interest income.
Non-interest expenses for the quarter were
$1,191 million, a decrease of
$17 million, or 1%, compared with the fourth quarter last
year.
The efficiency ratio for the quarter was
41.6%, compared with 45.9% in the fourth quarter last year.
Quarterly comparison – Q4 2023 vs. Q3 2023
Wealth Management and Insurance net income for the quarter was
$501 million, a decrease of $3
million, or 1%, compared with the prior quarter, reflecting
higher insurance claims and related expenses, mostly offset by
higher insurance revenue. The annualized ROE for the quarter was
36.1%, compared with 35.3%, in the prior quarter.
Revenue increased $85 million, or 3%,
compared with the prior quarter. Non-interest income increased
$80 million, or 3%, reflecting an increase in the fair value
of investments supporting claims liabilities which resulted in a
similar increase in insurance claims, higher insurance premiums,
and higher fee-based revenue, partially offset by lower transaction
revenue in the wealth management business. Net interest income
increased $5 million, or 2%, reflecting higher investment
income in the insurance business.
AUA decreased $28 billion, or 5%, and
AUM decreased $16 billion, or 4%, compared with the prior
quarter, both primarily reflecting market depreciation.
Insurance claims and related expenses
increased $79 million, or 9%, compared with the prior quarter,
reflecting the impact of changes in the discount rate which
resulted in a similar increase in the fair value of investments
supporting claims liabilities reported in non-interest income,
partially offset by more favourable prior years' claims
development.
Non-interest expenses for the quarter
increased $21 million, or 2%, compared with the prior
quarter.
The efficiency ratio for the quarter was
41.6%, compared with 42.1% in the prior quarter.
TABLE 12: WHOLESALE
BANKING1
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three months
ended
|
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
|
|
2023
|
|
2023
|
|
2022
|
|
Net interest income
(TEB)
|
$
|
245
|
|
$
|
270
|
|
$
|
683
|
|
Non-interest
income
|
|
1,243
|
|
|
1,298
|
|
|
476
|
|
Total
revenue
|
|
1,488
|
|
|
1,568
|
|
|
1,159
|
|
Provision for (recovery
of) credit losses – impaired
|
|
–
|
|
|
10
|
|
|
24
|
|
Provision for (recovery
of) credit losses – performing
|
|
57
|
|
|
15
|
|
|
2
|
|
Total provision for
(recovery of) credit losses
|
|
57
|
|
|
25
|
|
|
26
|
|
Non-interest expenses –
reported
|
|
1,441
|
|
|
1,247
|
|
|
802
|
|
Non-interest expenses –
adjusted2,3
|
|
1,244
|
|
|
1,104
|
|
|
784
|
|
Provision for (recovery
of) income taxes (TEB) – reported
|
|
(27)
|
|
|
24
|
|
|
70
|
|
Provision for (recovery
of) income taxes (TEB) – adjusted2
|
|
9
|
|
|
62
|
|
|
74
|
|
Net income –
reported
|
|
17
|
|
|
272
|
|
|
261
|
|
Net income –
adjusted2
|
$
|
178
|
|
$
|
377
|
|
$
|
275
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes and
ratios
|
|
|
|
|
|
|
|
|
|
Trading-related revenue
(TEB)4
|
$
|
590
|
|
$
|
626
|
|
$
|
560
|
|
Average gross lending
portfolio (billions of Canadian dollars)5
|
|
93.0
|
|
|
93.8
|
|
|
85.0
|
|
Return on common equity
– reported6
|
|
0.5
|
%
|
|
7.4
|
%
|
|
8.2
|
%
|
Return on common equity
– adjusted2,6
|
|
4.9
|
|
|
10.3
|
|
|
8.6
|
|
Efficiency ratio –
reported
|
|
96.8
|
|
|
79.5
|
|
|
69.2
|
|
Efficiency ratio –
adjusted2
|
|
83.6
|
|
|
70.4
|
|
|
67.6
|
|
Average number of
full-time equivalent staff
|
|
7,346
|
|
|
7,233
|
|
|
5,301
|
|
1
|
Wholesale Banking
results for 2023 include the acquisition of Cowen Inc. effective
March 1, 2023.
|
2
|
For additional
information about the Bank's use of non-GAAP financial measures,
refer to "Non-GAAP and Other Financial Measures" in the "How We
Performed" section of this document.
|
3
|
Adjusted non-interest
expenses exclude the acquisition and integration-related charges
primarily for the Cowen acquisition – Q4 2023: $197 million
($161 million after-tax), Q3 2023: $143 million
($105 million after-tax), Q4 2022: $18 million
($14 million after-tax).
|
4
|
Includes net interest
income TEB of $61 million (Q3 2023 – $8 million, Q4 2022
– $407 million), and trading income (loss) of
$529 million (Q3 2023 – $618 million, Q4 2022 –
$153 million). Trading-related revenue (TEB) is a non-GAAP
financial measure. Refer to "Non-GAAP and Other Financial Measures"
in the "How We Performed" section and the Glossary in the 2023
MD&A, for additional information about this metric.
|
5
|
Includes gross loans
and bankers' acceptances relating to Wholesale Banking, excluding
letters of credit, cash collateral, credit default swaps, and
allowance for credit losses.
|
6
|
Capital allocated to
the business segment was increased to 11% CET1 Capital effective in
the first quarter of the fiscal 2023 compared with 10.5% in the
prior year.
|
Quarterly comparison – Q4 2023 vs. Q4 2022
Wholesale Banking reported net income for the quarter was
$17 million, a decrease of
$244 million, or 93%, compared with
the fourth quarter last year, primarily reflecting higher
non-interest expenses partially offset by higher revenues. On an
adjusted basis, net income was $178
million, a decrease of $97
million, or 35%.
Revenue for the quarter, including the
acquisition of Cowen Inc., was $1,488
million, an increase of $329
million, or 28%, compared with the fourth quarter last year,
primarily reflecting higher equity commissions, advisory fees,
equity underwriting fees, and markdowns in certain loan
underwriting commitments in the prior year, partially offset by
lower equity and foreign exchange trading-related revenue.
PCL for the quarter was $57 million, an increase of $31 million compared with the fourth quarter last
year. PCL – impaired was nil. PCL – performing was
$57 million, an increase of $55
million. The current quarter performing provisions largely
reflect credit migration and volume growth.
Reported non-interest expenses for the
quarter were $1,441 million, an
increase of $639 million, or 80%,
compared with the fourth quarter last year, primarily reflecting
the acquisition of Cowen Inc. and acquisition and
integration-related costs, continued investments in Wholesale
Banking's U.S. dollar strategy, including the hiring of banking,
sales and trading, and technology professionals, and the impact of
foreign exchange translation. On an adjusted basis, excluding
acquisition and integration-related costs, non-interest expenses
were $1,244 million, an increase of
$460 million, or 59%.
Quarterly comparison – Q4 2023 vs. Q3 2023
Wholesale Banking reported net income for the quarter was
$17 million, a decrease of
$255 million, or 94%, compared with
the prior quarter, reflecting higher non-interest expenses and
lower revenue. On an adjusted basis, net income was $178 million, a decrease of $199 million, or 53%.
Revenue for the quarter, including the
acquisition of Cowen Inc., decreased $80
million, or 5%, compared with the prior quarter, primarily
reflecting lower underwriting fees and trading-related revenue.
PCL for the quarter was $57 million, an increase of $32 million compared with the prior quarter. PCL
– impaired was nil. PCL – performing was $57
million, an increase of $42
million. The current quarter performing provisions largely
reflect credit migration and volume growth.
Reported non-interest expenses for the
quarter increased $194 million, or
16%, compared with the prior quarter, primarily reflecting the
timing of employee-related costs and acquisition and
integration-related costs. On an adjusted basis, excluding
acquisition and integration-related costs, non-interest expenses
increased $140 million or 13%.
TABLE 13:
CORPORATE
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three months
ended
|
|
|
|
October
31
|
July 31
|
October 31
|
|
|
|
2023
|
2023
|
2022
|
|
Net income (loss) –
reported
|
$
|
(591)
|
$
|
(782)
|
$
|
2,661
|
|
Adjustments for
items of note
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
92
|
|
88
|
|
57
|
|
Acquisition and
integration charges related to the Schwab transaction
|
|
31
|
|
54
|
|
18
|
|
Share of restructuring
charges from investment in Schwab
|
|
35
|
|
–
|
|
–
|
|
Restructuring
charges
|
|
363
|
|
–
|
|
–
|
|
Payment related to the
termination of the FHN
transaction
|
|
–
|
|
306
|
|
–
|
|
Impact from the
terminated FHN acquisition-related capital hedging
strategy
|
|
64
|
|
177
|
|
(2,319)
|
|
Impact of retroactive
tax legislation on payment card clearing services
|
|
–
|
|
57
|
|
–
|
|
Gain on sale of Schwab
shares
|
|
–
|
|
–
|
|
(997)
|
|
Less: impact of
income taxes
|
|
127
|
|
82
|
|
(570)
|
|
Net income (loss) –
adjusted1
|
$
|
(133)
|
$
|
(182)
|
$
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Decomposition of
items included in net income (loss) – adjusted
|
|
|
|
|
|
|
|
Net corporate
expenses2
|
$
|
(227)
|
$
|
(333)
|
$
|
(187)
|
|
Other
|
|
94
|
|
151
|
|
177
|
|
Net income (loss) –
adjusted1
|
$
|
(133)
|
$
|
(182)
|
$
|
(10)
|
|
|
|
|
|
|
|
|
|
|
Selected
volumes
|
|
|
|
|
|
|
|
Average number of
full-time equivalent staff
|
|
23,491
|
|
23,486
|
|
21,373
|
|
1
|
For additional
information about the Bank's use of non-GAAP financial measures,
refer to "Non-GAAP and Other Financial Measures" in the "How We
Performed" section of this document.
|
2
|
For additional
information about this metric, refer to the Glossary in the 2023
MD&A.
|
Quarterly comparison – Q4 2023 vs. Q4 2022
Corporate segment's reported net loss for the quarter was
$591 million, compared with net income of $2,661 million in the fourth quarter last
year. The year-over-year decrease primarily reflects gains in the
prior year from the impact of the terminated First Horizon
acquisition-related capital hedging strategy and from the sale of
Schwab shares, and restructuring charges in the current quarter.
Other items decreased $83 million,
primarily reflecting the favourable tax impact of earnings mix and
the recognition of unused tax losses in the prior year, partially
offset by higher revenue from treasury and balance sheet management
activities this quarter. The adjusted net loss for the quarter was
$133 million, compared with an
adjusted net loss of $10 million in
the fourth quarter last year.
Quarterly comparison – Q4 2023 vs. Q3 2023
Corporate segment's reported net loss for the quarter was
$591 million, compared with net loss
of $782 million in the prior quarter.
The lower net loss quarter-over-quarter primarily reflects the
payment related to the termination of the First Horizon transaction
in the prior quarter, a lower net loss from the impact of the
terminated First Horizon acquisition-related capital hedging
strategy in the current quarter and lower net corporate expenses,
partially offset by restructuring charges in the current quarter.
Net corporate expenses decreased by $106
million, primarily reflecting litigation expenses in the
prior quarter. The adjusted net loss for the quarter was
$133 million, compared with an
adjusted net loss of $182 million in
the prior quarter.
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED BALANCE
SHEET1
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
|
|
As at
|
|
|
|
October
31
|
October 31
|
|
|
|
|
2023
|
|
2022
|
|
ASSETS
|
|
|
|
Cash and due from
banks
|
$
|
6,721
|
$
|
8,556
|
|
Interest-bearing
deposits with banks
|
|
98,348
|
|
137,294
|
|
|
|
|
105,069
|
|
145,850
|
|
Trading loans,
securities, and other
|
|
152,090
|
|
143,726
|
|
Non-trading financial
assets at fair value through profit or loss
|
|
7,340
|
|
10,946
|
|
Derivatives
|
|
87,382
|
|
103,873
|
|
Financial assets
designated at fair value through profit or loss
|
|
5,818
|
|
5,039
|
|
Financial assets at
fair value through other comprehensive income
|
|
69,865
|
|
69,675
|
|
|
|
|
322,495
|
|
333,259
|
|
Debt securities at
amortized cost, net of allowance for credit losses
|
|
308,016
|
|
342,774
|
|
Securities purchased
under reverse repurchase agreements
|
|
204,333
|
|
160,167
|
|
Loans
|
|
|
|
|
|
Residential
mortgages
|
|
320,341
|
|
293,924
|
|
Consumer instalment and
other personal
|
|
217,554
|
|
206,152
|
|
Credit card
|
|
38,660
|
|
36,010
|
|
Business and
government
|
|
326,528
|
|
301,389
|
|
|
|
|
903,083
|
|
837,475
|
|
Allowance for loan
losses
|
|
(7,136)
|
|
(6,432)
|
|
Loans, net of allowance
for loan losses
|
|
895,947
|
|
831,043
|
|
Other
|
|
|
|
|
|
Customers' liability
under acceptances
|
|
17,569
|
|
19,733
|
|
Investment in
Schwab
|
|
8,907
|
|
8,088
|
|
Goodwill
|
|
18,602
|
|
17,656
|
|
Other
intangibles
|
|
2,771
|
|
2,303
|
|
Land, buildings,
equipment, other depreciable assets, and right-of-use
assets
|
|
9,434
|
|
9,400
|
|
Deferred tax
assets
|
|
3,960
|
|
2,193
|
|
Amounts receivable from
brokers, dealers, and clients
|
|
30,416
|
|
19,760
|
|
Other assets
|
|
29,505
|
|
25,302
|
|
|
|
|
121,164
|
|
104,435
|
|
Total
assets
|
$
|
1,957,024
|
$
|
1,917,528
|
|
LIABILITIES
|
|
|
|
|
|
Trading
deposits
|
$
|
30,980
|
$
|
23,805
|
|
Derivatives
|
|
71,640
|
|
91,133
|
|
Securitization
liabilities at fair value
|
|
14,422
|
|
12,612
|
|
Financial liabilities
designated at fair value through profit or loss
|
|
192,130
|
|
162,786
|
|
|
|
|
309,172
|
|
290,336
|
|
Deposits
|
|
|
|
|
|
Personal
|
|
626,596
|
|
660,838
|
|
Banks
|
|
31,225
|
|
38,263
|
|
Business and
government
|
|
540,369
|
|
530,869
|
|
|
|
|
1,198,190
|
|
1,229,970
|
|
Other
|
|
|
|
|
|
Acceptances
|
|
17,569
|
|
19,733
|
|
Obligations related to
securities sold short
|
|
44,661
|
|
45,505
|
|
Obligations related to
securities sold under repurchase agreements
|
|
166,854
|
|
128,024
|
|
Securitization
liabilities at amortized cost
|
|
12,710
|
|
15,072
|
|
Amounts payable to
brokers, dealers, and clients
|
|
30,872
|
|
25,195
|
|
Insurance-related
liabilities
|
|
7,605
|
|
7,468
|
|
Other
liabilities
|
|
47,664
|
|
33,552
|
|
|
|
|
327,935
|
|
274,549
|
|
Subordinated notes
and debentures
|
|
9,620
|
|
11,290
|
|
Total
liabilities
|
|
1,844,917
|
|
1,806,145
|
|
EQUITY
|
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
|
Common
shares
|
|
25,434
|
|
24,363
|
|
Preferred shares and
other equity instruments
|
|
10,853
|
|
11,253
|
|
Treasury – common
shares
|
|
(64)
|
|
(91)
|
|
Treasury – preferred
shares and other equity instruments
|
|
(65)
|
|
(7)
|
|
Contributed
surplus
|
|
155
|
|
179
|
|
Retained
earnings
|
|
73,044
|
|
73,698
|
|
Accumulated other
comprehensive income (loss)
|
|
2,750
|
|
1,988
|
|
Total
equity
|
|
112,107
|
|
111,383
|
|
Total liabilities
and equity
|
$
|
1,957,024
|
$
|
1,917,528
|
|
1
|
The amounts as at
October 31, 2023 and October 31, 2022, have been derived
from the 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
|
|
|
2023
|
2022
|
2023
|
2022
|
|
Interest
income2
|
|
|
|
|
|
|
|
|
|
Loans
|
$
|
12,464
|
$
|
8,637
|
$
|
44,518
|
$
|
27,721
|
|
Reverse repurchase
agreements
|
|
2,945
|
|
1,156
|
|
9,520
|
|
1,945
|
|
Securities
|
|
|
|
|
|
|
|
|
|
|
Interest
|
|
5,241
|
|
3,419
|
|
19,029
|
|
7,928
|
|
|
Dividends
|
|
548
|
|
500
|
|
2,289
|
|
1,822
|
|
Deposits with
banks
|
|
1,178
|
|
987
|
|
5,318
|
|
1,616
|
|
|
|
22,376
|
|
14,699
|
|
80,674
|
|
41,032
|
|
Interest
expense
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
11,257
|
|
5,255
|
|
38,351
|
|
9,748
|
|
Securitization
liabilities
|
|
253
|
|
185
|
|
915
|
|
573
|
|
Subordinated notes and
debentures
|
|
103
|
|
105
|
|
436
|
|
397
|
|
Repurchase agreements
and short sales
|
|
2,992
|
|
1,413
|
|
10,083
|
|
2,706
|
|
Other
|
|
277
|
|
111
|
|
945
|
|
255
|
|
|
|
14,882
|
|
7,069
|
|
50,730
|
|
13,679
|
|
Net interest
income
|
|
7,494
|
|
7,630
|
|
29,944
|
|
27,353
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
Investment and
securities services
|
|
1,651
|
|
1,381
|
|
6,420
|
|
5,869
|
|
Credit fees
|
|
472
|
|
438
|
|
1,796
|
|
1,615
|
|
Trading income
(loss)
|
|
750
|
|
(219)
|
|
2,417
|
|
(257)
|
|
Service
charges
|
|
649
|
|
719
|
|
2,609
|
|
2,871
|
|
Card
services
|
|
754
|
|
750
|
|
2,932
|
|
2,890
|
|
Insurance
revenue
|
|
1,491
|
|
1,310
|
|
5,671
|
|
5,380
|
|
Other income
(loss)
|
|
(140)
|
|
3,554
|
|
(1,297)
|
|
3,311
|
|
|
|
5,627
|
|
7,933
|
|
20,548
|
|
21,679
|
|
Total
revenue
|
|
13,121
|
|
15,563
|
|
50,492
|
|
49,032
|
|
Provision for
(recovery of) credit losses
|
|
878
|
|
617
|
|
2,933
|
|
1,067
|
|
Insurance claims and
related expenses
|
|
1,002
|
|
723
|
|
3,705
|
|
2,900
|
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
4,107
|
|
3,507
|
|
15,753
|
|
13,394
|
|
Occupancy, including
depreciation
|
|
460
|
|
433
|
|
1,799
|
|
1,660
|
|
Technology and
equipment, including depreciation
|
|
620
|
|
521
|
|
2,308
|
|
1,902
|
|
Amortization of other
intangibles
|
|
185
|
|
147
|
|
672
|
|
599
|
|
Communication and
marketing
|
|
418
|
|
403
|
|
1,452
|
|
1,355
|
|
Restructuring
charges
|
|
363
|
|
–
|
|
363
|
|
–
|
|
Brokerage-related and
sub-advisory fees
|
|
128
|
|
97
|
|
456
|
|
408
|
|
Professional, advisory
and outside services
|
|
703
|
|
692
|
|
2,490
|
|
2,190
|
|
Other
|
|
899
|
|
745
|
|
5,475
|
|
3,133
|
|
|
|
7,883
|
|
6,545
|
|
30,768
|
|
24,641
|
|
Income before income
taxes and share of net income from investment
|
|
|
|
|
|
|
|
|
|
|
in
Schwab
|
|
3,358
|
|
7,678
|
|
13,086
|
|
20,424
|
|
Provision for
(recovery of) income taxes
|
|
628
|
|
1,297
|
|
3,168
|
|
3,986
|
|
Share of net income
from investment in Schwab
|
|
156
|
|
290
|
|
864
|
|
991
|
|
Net
income
|
|
2,886
|
|
6,671
|
|
10,782
|
|
17,429
|
|
Preferred dividends
and distributions on other equity instruments
|
|
196
|
|
107
|
|
563
|
|
259
|
|
Net income available
to common shareholders
|
$
|
2,690
|
$
|
6,564
|
$
|
10,219
|
$
|
17,170
|
|
Earnings per
share (Canadian dollars)
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
1.49
|
$
|
3.62
|
$
|
5.61
|
$
|
9.48
|
|
Diluted
|
|
1.49
|
|
3.62
|
|
5.60
|
|
9.47
|
|
Dividends per common
share (Canadian dollars)
|
|
0.96
|
|
0.89
|
|
3.84
|
|
3.56
|
|
1
|
The amounts for the
three months ended October 31, 2023, and October 31,
2022, have been derived from unaudited financial statements. The
amounts for the twelve months ended October 31, 2023 and
October 31, 2022, have been derived from the audited financial
statements.
|
2
|
Includes $19,983
million and $72,403 million, for the three and twelve months ended
October 31, 2023, respectively (three and twelve months ended
October 31, 2022 – $13,358 million and
$37,105 million, respectively) which have been calculated
based on the effective interest rate method.
|
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
|
|
|
|
|
2023
|
2022
|
2023
|
2022
|
|
Net
income
|
$
|
2,886
|
$
|
6,671
|
$
|
10,782
|
$
|
17,429
|
|
Other comprehensive
income (loss)
|
|
|
|
|
|
|
|
|
|
Items that will
be subsequently reclassified to net income
|
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized gain/(loss) on financial assets at fair value
through
|
|
|
|
|
|
|
|
|
|
|
|
other comprehensive
income
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized
gain/ (loss)
|
|
(295)
|
|
(269)
|
|
96
|
|
(1,343)
|
|
|
Reclassification to
earnings of net loss /(gain)
|
|
1
|
|
7
|
|
(9)
|
|
2
|
|
|
Changes in allowance
for credit losses recognized in earnings
|
|
1
|
|
(2)
|
|
–
|
|
(5)
|
|
|
Income taxes relating
to:
|
|
|
|
|
|
|
|
|
|
|
|
Change in unrealized
gain/(loss)
|
|
72
|
|
63
|
|
(32)
|
|
360
|
|
|
|
Reclassification to
earnings of net loss/(gain)
|
|
1
|
|
–
|
|
8
|
|
–
|
|
|
|
|
|
(220)
|
|
(201)
|
|
63
|
|
(986)
|
|
|
Net change in
unrealized foreign currency translation gain/(loss)
on
|
|
|
|
|
|
|
|
|
|
|
|
investments in
foreign operations, net of hedging activities
|
|
|
|
|
|
|
|
|
|
|
Unrealized
gain/(loss)
|
|
5,740
|
|
5,871
|
|
2,233
|
|
9,230
|
|
|
Reclassification to
earnings of net loss /(gain)
|
|
–
|
|
50
|
|
11
|
|
50
|
|
|
Net gain/(loss) on
hedges
|
|
(3,565)
|
|
(2,084)
|
|
(1,821)
|
|
(3,271)
|
|
|
Reclassification to
earnings of net loss /(gain) on hedges
|
|
–
|
|
(68)
|
|
(15)
|
|
(68)
|
|
|
Income taxes relating
to:
|
|
|
|
|
|
|
|
|
|
|
|
Net gain/(loss) on
hedges
|
|
987
|
|
548
|
|
217
|
|
859
|
|
|
|
Reclassification to
earnings of net loss /(gain) on hedges
|
|
–
|
|
18
|
|
4
|
|
18
|
|
|
|
|
|
3,162
|
|
4,335
|
|
629
|
|
6,818
|
|
|
Net change in
gain/(loss) on derivatives designated as cash flow
hedges
|
|
|
|
|
|
|
|
|
|
|
Change in
gain/(loss)
|
|
991
|
|
(1,485)
|
|
(78)
|
|
(6,179)
|
|
|
Reclassification to
earnings of loss/(gain)
|
|
(1,583)
|
|
(3,600)
|
|
238
|
|
(4,100)
|
|
|
Income taxes relating
to:
|
|
|
|
|
|
|
|
|
|
|
|
Change in
gain/(loss)
|
|
(251)
|
|
419
|
|
137
|
|
1,660
|
|
|
|
Reclassification to
earnings of loss/(gain)
|
|
451
|
|
890
|
|
(52)
|
|
972
|
|
|
|
|
|
(392)
|
|
(3,776)
|
|
245
|
|
(7,647)
|
|
|
Share of other
comprehensive income (loss) from investment in
Schwab
|
|
(385)
|
|
(721)
|
|
91
|
|
(3,200)
|
|
Items that will
not be subsequently reclassified to net income
|
|
|
|
|
|
|
|
|
|
|
Remeasurement
gain/(loss) on employee benefit plans
|
|
|
|
|
|
|
|
|
|
|
Gain/(loss)
|
|
(7)
|
|
(399)
|
|
(95)
|
|
1,105
|
|
|
Income taxes
|
|
1
|
|
105
|
|
9
|
|
(290)
|
|
|
|
|
|
(6)
|
|
(294)
|
|
(86)
|
|
815
|
|
|
Change in net
unrealized gain/(loss) on equity securities designated
at
|
|
|
|
|
|
|
|
|
|
|
|
fair value through
other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Change in net
unrealized gain/(loss)
|
|
(194)
|
|
(62)
|
|
(204)
|
|
(214)
|
|
|
Income taxes
|
|
53
|
|
16
|
|
54
|
|
56
|
|
|
|
|
|
(141)
|
|
(46)
|
|
(150)
|
|
(158)
|
|
|
Gain/(loss) from
changes in fair value due to own credit risk on
|
|
|
|
|
|
|
|
|
|
|
|
financial
liabilities designated at fair value through profit or
loss
|
|
|
|
|
|
|
|
|
|
|
Gain/(loss)
|
|
(12)
|
|
52
|
|
(158)
|
|
87
|
|
|
Income taxes
|
|
3
|
|
(14)
|
|
42
|
|
(23)
|
|
|
|
|
|
(9)
|
|
38
|
|
(116)
|
|
64
|
|
Total other
comprehensive income (loss)
|
|
2,009
|
|
(665)
|
|
676
|
|
(4,294)
|
|
Total comprehensive
income (loss)
|
$
|
4,895
|
$
|
6,006
|
$
|
11,458
|
$
|
13,135
|
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
|
Common
shareholders
|
$
|
4,699
|
$
|
5,899
|
$
|
10,895
|
$
|
12,876
|
|
|
Preferred shareholders
and other equity instrument holders
|
|
196
|
|
107
|
|
563
|
|
259
|
|
1
|
The amounts for the
three months ended October 31, 2023, and October 31,
2022, have been derived from unaudited financial statements. The
amounts for the twelve months ended October 31, 2023 and
October 31, 2022, have been derived from the audited financial
statements.
|
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
|
|
|
2023
|
2022
|
2023
|
2022
|
|
Common
shares
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
$
|
25,833
|
$
|
23,744
|
$
|
24,363
|
$
|
23,066
|
|
Proceeds from shares
issued on exercise of stock options
|
|
6
|
|
23
|
|
83
|
|
120
|
|
Shares issued as a
result of dividend reinvestment plan
|
|
127
|
|
596
|
|
1,720
|
|
1,442
|
|
Purchase of shares for
cancellation and other
|
|
(532)
|
|
–
|
|
(732)
|
|
(265)
|
|
Balance at end of
period
|
|
25,434
|
|
24,363
|
|
25,434
|
|
24,363
|
|
Preferred shares and
other equity instruments
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
11,253
|
|
7,350
|
|
11,253
|
|
5,700
|
|
Issue of shares and
other equity instruments
|
|
–
|
|
3,903
|
|
–
|
|
5,553
|
|
Redemption of shares
and other equity instruments
|
|
(400)
|
|
–
|
|
(400)
|
|
–
|
|
Balance at end of
period
|
|
10,853
|
|
11,253
|
|
10,853
|
|
11,253
|
|
Treasury – common
shares
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
–
|
|
(104)
|
|
(91)
|
|
(152)
|
|
Purchase of
shares
|
|
(1,943)
|
|
(2,721)
|
|
(7,959)
|
|
(10,852)
|
|
Sale of
shares
|
|
1,879
|
|
2,734
|
|
7,986
|
|
10,913
|
|
Balance at end of
period
|
|
(64)
|
|
(91)
|
|
(64)
|
|
(91)
|
|
Treasury – preferred
shares and other equity instruments
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
(11)
|
|
(16)
|
|
(7)
|
|
(10)
|
|
Purchase of shares and
other equity instruments
|
|
(218)
|
|
(113)
|
|
(590)
|
|
(255)
|
|
Sale of shares and
other equity instruments
|
|
164
|
|
122
|
|
532
|
|
258
|
|
Balance at end of
period
|
|
(65)
|
|
(7)
|
|
(65)
|
|
(7)
|
|
Contributed
surplus
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
195
|
|
169
|
|
179
|
|
173
|
|
Net premium (discount)
on sale of treasury instruments
|
|
(39)
|
|
(19)
|
|
(21)
|
|
(3)
|
|
Issuance of stock
options, net of options exercised
|
|
6
|
|
2
|
|
27
|
|
18
|
|
Other
|
|
(7)
|
|
27
|
|
(30)
|
|
(9)
|
|
Balance at end of
period
|
|
155
|
|
179
|
|
155
|
|
179
|
|
Retained
earnings
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
74,659
|
|
69,090
|
|
73,698
|
|
63,944
|
|
Net income attributable
to equity instrument holders
|
|
2,886
|
|
6,671
|
|
10,782
|
|
17,429
|
|
Common
dividends
|
|
(1,724)
|
|
(1,613)
|
|
(6,982)
|
|
(6,442)
|
|
Preferred dividends and
distributions on other equity instruments
|
|
(196)
|
|
(107)
|
|
(563)
|
|
(259)
|
|
Share and other equity
instrument issue expenses
|
|
–
|
|
(19)
|
|
–
|
|
(24)
|
|
Net premium on
repurchase of common shares and redemption of preferred shares and
other equity instruments
|
|
(2,572)
|
|
–
|
|
(3,553)
|
|
(1,930)
|
|
Remeasurement
gain/(loss) on employee benefit plans
|
|
(6)
|
|
(294)
|
|
(86)
|
|
815
|
|
Realized gain/(loss) on
equity securities designated at fair value through other
comprehensive income
|
|
(3)
|
|
(30)
|
|
(252)
|
|
165
|
|
Balance at end of
period
|
|
73,044
|
|
73,698
|
|
73,044
|
|
73,698
|
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
|
Net unrealized
gain/(loss) on financial assets at fair value through other
comprehensive income:
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
(193)
|
|
(275)
|
|
(476)
|
|
510
|
|
Other comprehensive
income (loss)
|
|
(221)
|
|
(199)
|
|
63
|
|
(981)
|
|
Allowance for credit
losses
|
|
1
|
|
(2)
|
|
–
|
|
(5)
|
|
Balance at end of
period
|
|
(413)
|
|
(476)
|
|
(413)
|
|
(476)
|
|
Net unrealized
gain/(loss) on equity securities designated at fair value through
other comprehensive income:
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
14
|
|
69
|
|
23
|
|
181
|
|
Other comprehensive
income (loss)
|
|
(144)
|
|
(76)
|
|
(402)
|
|
7
|
|
Reclassification of
loss/(gain) to retained earnings
|
|
3
|
|
30
|
|
252
|
|
(165)
|
|
Balance at end of
period
|
|
(127)
|
|
23
|
|
(127)
|
|
23
|
|
Gain/(loss) from
changes in fair value due to own credit risk on financial
liabilities designated at fair value through
|
|
|
|
|
|
|
|
|
|
|
profit or
loss:
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
(29)
|
|
40
|
|
78
|
|
14
|
|
Other comprehensive
income (loss)
|
|
(9)
|
|
38
|
|
(116)
|
|
64
|
|
Balance at end of
period
|
|
(38)
|
|
78
|
|
(38)
|
|
78
|
|
Net unrealized
foreign currency translation gain/(loss) on investments in foreign
operations, net of hedging activities:
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
9,515
|
|
7,713
|
|
12,048
|
|
5,230
|
|
Other comprehensive
income (loss)
|
|
3,162
|
|
4,335
|
|
629
|
|
6,818
|
|
Balance at end of
period
|
|
12,677
|
|
12,048
|
|
12,677
|
|
12,048
|
|
Net gain/(loss) on
derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
|
Balance at beginning of
period
|
|
(5,080)
|
|
(1,941)
|
|
(5,717)
|
|
1,930
|
|
Other comprehensive
income (loss)
|
|
(392)
|
|
(3,776)
|
|
245
|
|
(7,647)
|
|
Balance at end of
period
|
|
(5,472)
|
|
(5,717)
|
|
(5,472)
|
|
(5,717)
|
|
Share of accumulated
other comprehensive income (loss) from Investment in
Schwab
|
|
(3,877)
|
|
(3,968)
|
|
(3,877)
|
|
(3,968)
|
|
Total accumulated
other comprehensive income
|
|
2,750
|
|
1,988
|
|
2,750
|
|
1,988
|
|
Total
equity
|
$
|
112,107
|
$
|
111,383
|
$
|
112,107
|
$
|
111,383
|
|
1
|
The amounts for the
three months ended October 31, 2023, and October 31, 2022, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2023 and October 31, 2022, have
been derived from the 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
|
|
|
|
2023
|
2022
|
2023
|
2022
|
|
Cash flows from
(used in) operating activities
|
|
|
|
|
|
|
|
|
|
Net income
|
$
|
2,886
|
$
|
6,671
|
$
|
10,782
|
$
|
17,429
|
|
Adjustments to
determine net cash flows from (used in) operating
activities
|
|
|
|
|
|
|
|
|
|
|
Provision for (recovery
of) credit losses
|
|
878
|
|
617
|
|
2,933
|
|
1,067
|
|
|
Depreciation
|
|
320
|
|
316
|
|
1,239
|
|
1,167
|
|
|
Amortization of other
intangibles
|
|
185
|
|
147
|
|
672
|
|
599
|
|
|
Net securities
loss/(gain)
|
|
–
|
|
(8)
|
|
48
|
|
(60)
|
|
|
Share of net income
from investment in Schwab
|
|
(156)
|
|
(290)
|
|
(864)
|
|
(991)
|
|
|
Gain on sale of Schwab
shares
|
|
–
|
|
(997)
|
|
–
|
|
(997)
|
|
|
Deferred
taxes
|
|
(250)
|
|
469
|
|
(1,256)
|
|
502
|
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
|
Interest receivable and
payable
|
|
297
|
|
(150)
|
|
812
|
|
(412)
|
|
|
Securities sold under
repurchase agreements
|
|
3,144
|
|
1,078
|
|
36,832
|
|
(16,073)
|
|
|
Securities purchased
under reverse repurchase agreements
|
|
(2,816)
|
|
1,108
|
|
(41,873)
|
|
7,117
|
|
|
Securities sold
short
|
|
(493)
|
|
(4,563)
|
|
(2,722)
|
|
3,121
|
|
|
Trading loans,
securities, and other
|
|
6,515
|
|
4,407
|
|
(5,332)
|
|
3,864
|
|
|
Loans net of
securitization and sales
|
|
(29,001)
|
|
(40,791)
|
|
(67,766)
|
|
(109,463)
|
|
|
Deposits
|
|
41,350
|
|
33,435
|
|
(25,487)
|
|
105,759
|
|
|
Derivatives
|
|
(7,802)
|
|
(9,817)
|
|
(2,341)
|
|
(15,435)
|
|
|
Non-trading financial
assets at fair value through profit or loss
|
|
529
|
|
480
|
|
3,897
|
|
(1,556)
|
|
|
Financial assets and
liabilities designated at fair value through profit or
loss
|
|
8,565
|
|
22,697
|
|
28,565
|
|
48,323
|
|
|
Securitization
liabilities
|
|
(801)
|
|
(215)
|
|
(552)
|
|
(1,083)
|
|
|
Current
taxes
|
|
(1,150)
|
|
(1,121)
|
|
1,228
|
|
(4,100)
|
|
|
Brokers, dealers and
clients amounts receivable and payable
|
|
3,367
|
|
2,165
|
|
(5,128)
|
|
8,799
|
|
|
Other, including
unrealized foreign currency translation loss/(gain)
|
|
(11,049)
|
|
(13,047)
|
|
1,011
|
|
(8,628)
|
|
Net cash from (used in)
operating activities
|
|
14,518
|
|
2,591
|
|
(65,302)
|
|
38,949
|
|
Cash flows from
(used in) financing activities
|
|
|
|
|
|
|
|
|
|
Redemption or
repurchase of subordinated notes and debentures
|
|
(1,751)
|
|
(42)
|
|
(1,716)
|
|
6
|
|
Common shares issued,
net
|
|
5
|
|
21
|
|
74
|
|
108
|
|
Repurchase of common
shares
|
|
(3,104)
|
|
–
|
|
(4,285)
|
|
(2,195)
|
|
Preferred shares and
other equity instruments issued
|
|
–
|
|
3,884
|
|
–
|
|
5,529
|
|
Redemption of preferred
shares and other equity instruments
|
|
(400)
|
|
–
|
|
(400)
|
|
(1,000)
|
|
Sale of treasury shares
and other equity instruments
|
|
2,004
|
|
2,837
|
|
8,497
|
|
11,168
|
|
Purchase of treasury
shares and other equity instruments
|
|
(2,161)
|
|
(2,834)
|
|
(8,549)
|
|
(11,107)
|
|
Dividends paid on
shares and distributions paid on other equity
instruments
|
|
(1,793)
|
|
(2,156)
|
|
(5,825)
|
|
(6,665)
|
|
Repayment of lease
liabilities
|
|
(163)
|
|
(185)
|
|
(643)
|
|
(663)
|
|
Net cash from (used in)
financing activities
|
|
(7,363)
|
|
1,525
|
|
(12,847)
|
|
(4,819)
|
|
Cash flows from
(used in) investing activities
|
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
(13,048)
|
|
(532)
|
|
41,446
|
|
30,455
|
|
Activities in financial
assets at fair value through other comprehensive income
|
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(4,291)
|
|
(7,079)
|
|
(24,336)
|
|
(31,135)
|
|
|
Proceeds from
maturities
|
|
3,884
|
|
8,002
|
|
17,893
|
|
33,158
|
|
|
Proceeds from
sales
|
|
1,029
|
|
1,540
|
|
5,838
|
|
6,723
|
|
Activities in debt
securities at amortized cost
|
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(5,136)
|
|
(30,848)
|
|
(26,987)
|
|
(149,560)
|
|
|
Proceeds from
maturities
|
|
9,966
|
|
20,250
|
|
52,819
|
|
68,719
|
|
|
Proceeds from
sales
|
|
46
|
|
5,160
|
|
12,021
|
|
8,720
|
|
Net purchases of land,
buildings, equipment, other depreciable assets, and other
intangibles
|
|
(554)
|
|
(461)
|
|
(1,844)
|
|
(1,454)
|
|
Net cash acquired from
(paid for) divestitures and acquisitions
|
|
–
|
|
2,479
|
|
(624)
|
|
2,479
|
|
Net cash from (used in)
investing activities
|
|
(8,104)
|
|
(1,489)
|
|
76,226
|
|
(31,895)
|
|
Effect of exchange rate
changes on cash and due from banks
|
|
250
|
|
255
|
|
88
|
|
390
|
|
Net increase
(decrease) in cash and due from banks
|
|
(699)
|
|
2,882
|
|
(1,835)
|
|
2,625
|
|
Cash and due from banks
at beginning of period
|
|
7,420
|
|
5,674
|
|
8,556
|
|
5,931
|
|
Cash and due from
banks at end of period
|
$
|
6,721
|
$
|
8,556
|
$
|
6,721
|
$
|
8,556
|
|
Supplementary
disclosure of cash flows from operating activities
|
|
|
|
|
|
|
|
|
|
Amount of income taxes
paid (refunded) during the period
|
$
|
1,036
|
$
|
301
|
$
|
3,036
|
$
|
4,404
|
|
Amount of interest paid
during the period
|
|
14,193
|
|
6,428
|
|
48,179
|
|
12,523
|
|
Amount of interest
received during the period
|
|
21,436
|
|
13,408
|
|
76,646
|
|
37,642
|
|
Amount of dividends
received during the period
|
|
513
|
|
281
|
|
2,247
|
|
1,792
|
|
1
|
The amounts for the
three months ended October 31, 2023, and October 31, 2022, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2023 and October 31, 2022, have
been derived from the audited financial statements.
|
Appendix A – Segmented Information
For management
reporting purposes, the Bank reports its results under four key
business segments: Canadian Personal and Commercial Banking, which
includes the results of the Canadian personal and commercial
banking businesses, and TD Auto Finance Canada; 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 Schwab; Wealth Management
and Insurance; and Wholesale Banking. The Bank's other activities
are grouped into the Corporate segment.
Results for these segments for the years ended October 31, 2023 and October 31, 2022 are presented in the following
tables.
Results by Business
Segment1,2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
|
|
|
|
|
Wealth
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Personal
and
|
|
|
|
|
Management
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
Banking
|
U.S.
Retail
|
and
Insurance
|
Wholesale
Banking3
|
Corporate3
|
Total
|
|
|
|
|
|
|
|
|
For the three months
ended October 31
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net interest income
(loss)
|
$
|
3,705
|
$
|
3,388
|
$
|
2,955
|
$
|
2,957
|
$
|
261
|
$
|
272
|
$
|
245
|
$
|
683
|
$
|
328
|
$
|
330
|
$
|
7,494
|
$
|
7,630
|
Non-interest income
(loss)
|
|
1,049
|
|
1,066
|
|
603
|
|
638
|
|
2,603
|
|
2,359
|
|
1,243
|
|
476
|
|
129
|
|
3,394
|
|
5,627
|
|
7,933
|
Total
revenue
|
|
4,754
|
|
4,454
|
|
3,558
|
|
3,595
|
|
2,864
|
|
2,631
|
|
1,488
|
|
1,159
|
|
457
|
|
3,724
|
|
13,121
|
|
15,563
|
Provision for (recovery
of)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
credit
losses
|
|
390
|
|
229
|
|
289
|
|
225
|
|
–
|
|
–
|
|
57
|
|
26
|
|
142
|
|
137
|
|
878
|
|
617
|
Insurance claims
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related
expenses
|
|
–
|
|
–
|
|
–
|
|
–
|
|
1,002
|
|
723
|
|
–
|
|
–
|
|
–
|
|
–
|
|
1,002
|
|
723
|
Non-interest
expenses
|
|
2,039
|
|
1,921
|
|
2,066
|
|
1,976
|
|
1,191
|
|
1,208
|
|
1,441
|
|
802
|
|
1,146
|
|
638
|
|
7,883
|
|
6,545
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and share of net income
from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in
Schwab
|
|
2,325
|
|
2,304
|
|
1,203
|
|
1,394
|
|
671
|
|
700
|
|
(10)
|
|
331
|
|
(831)
|
|
2,949
|
|
3,358
|
|
7,678
|
Provision for (recovery
of)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
646
|
|
610
|
|
120
|
|
165
|
|
170
|
|
184
|
|
(27)
|
|
70
|
|
(281)
|
|
268
|
|
628
|
|
1,297
|
Share of net income
from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in
Schwab4,5
|
|
–
|
|
–
|
|
197
|
|
310
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(41)
|
|
(20)
|
|
156
|
|
290
|
Net income
(loss)
|
$
|
1,679
|
$
|
1,694
|
$
|
1,280
|
$
|
1,539
|
$
|
501
|
$
|
516
|
$
|
17
|
$
|
261
|
$
|
(591)
|
$
|
2,661
|
$
|
2,886
|
$
|
6,671
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve
months ended October 31
|
|
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net interest income
(loss)
|
$
|
14,192
|
$
|
12,396
|
$
|
12,037
|
$
|
9,604
|
$
|
1,056
|
$
|
945
|
$
|
1,538
|
$
|
2,937
|
$
|
1,121
|
$
|
1,471
|
$
|
29,944
|
$
|
27,353
|
Non-interest income
(loss)
|
|
4,125
|
|
4,190
|
|
2,405
|
|
2,821
|
|
10,224
|
|
9,915
|
|
4,280
|
|
1,894
|
|
(486)
|
|
2,859
|
|
20,548
|
|
21,679
|
Total
revenue
|
|
18,317
|
|
16,586
|
|
14,442
|
|
12,425
|
|
11,280
|
|
10,860
|
|
5,818
|
|
4,831
|
|
635
|
|
4,330
|
|
50,492
|
|
49,032
|
Provision for (recovery
of)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
credit
losses
|
|
1,343
|
|
491
|
|
928
|
|
335
|
|
1
|
|
1
|
|
126
|
|
37
|
|
535
|
|
203
|
|
2,933
|
|
1,067
|
Insurance claims
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
related
expenses
|
|
–
|
|
–
|
|
–
|
|
–
|
|
3,705
|
|
2,900
|
|
–
|
|
–
|
|
–
|
|
–
|
|
3,705
|
|
2,900
|
Non-interest
expenses
|
|
7,700
|
|
7,176
|
|
8,191
|
|
6,920
|
|
4,709
|
|
4,711
|
|
4,760
|
|
3,033
|
|
5,408
|
|
2,801
|
|
30,768
|
|
24,641
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and share of net income
from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in
Schwab
|
|
9,274
|
|
8,919
|
|
5,323
|
|
5,170
|
|
2,865
|
|
3,248
|
|
932
|
|
1,761
|
|
(5,308)
|
|
1,326
|
|
13,086
|
|
20,424
|
Provision for (recovery
of)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
income taxes
|
|
2,586
|
|
2,361
|
|
667
|
|
625
|
|
747
|
|
853
|
|
162
|
|
436
|
|
(994)
|
|
(289)
|
|
3,168
|
|
3,986
|
Share of net income
from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in
Schwab4,5
|
|
–
|
|
–
|
|
939
|
|
1,075
|
|
–
|
|
–
|
|
–
|
|
–
|
|
(75)
|
|
(84)
|
|
864
|
|
991
|
Net income
(loss)
|
$
|
6,688
|
$
|
6,558
|
$
|
5,595
|
$
|
5,620
|
$
|
2,118
|
$
|
2,395
|
$
|
770
|
$
|
1,325
|
$
|
(4,389)
|
$
|
1,531
|
$
|
10,782
|
$
|
17,429
|
Total Assets by
Business Segment6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
|
|
|
|
Wealth
|
|
|
|
|
|
|
|
|
|
|
Personal
and
|
|
|
|
Management
|
|
Wholesale
|
|
|
|
|
|
|
|
Commercial
Baking
|
U.S.
Retail
|
and
Insurance
|
Banking
|
Corporate
|
Total
|
|
|
|
As at October 31,
2023
|
|
Total
assets
|
$
|
560,303
|
$
|
561,189
|
$
|
23,574
|
$
|
673,398
|
$
|
138,560
|
$
|
1,957,024
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at October 31,
2022
|
|
Total
assets
|
$
|
526,374
|
$
|
585,297
|
$
|
23,721
|
$
|
635,094
|
$
|
147,042
|
$
|
1,917,528
|
|
1
|
The amounts for the
three months ended October 31, 2023 and October 31, 2022
have been derived from the unaudited financial statements. The
amounts for the twelve months ended October 31, 2023 and
October 31, 2022 have been derived from the audited financial
statements.
|
2
|
The retailer program
partners' share of revenues and credit losses is presented in the
Corporate segment, with an offsetting amount (representing the
partners' net share) recorded in Non-interest expenses, resulting
in no impact to Corporate reported Net income (loss). The Net
income (loss) included in the U.S. Retail segment includes only the
portion of revenue and credit losses attributable to the Bank under
the agreements.
|
3
|
Net interest income
within Wholesale Banking is calculated on a TEB. The TEB adjustment
reflected in Wholesale Banking is reversed in the Corporate
segment.
|
4
|
The after-tax amounts
for amortization of acquired intangibles, the Bank's share of
acquisition and integration charges associated with Schwab's
acquisition of TD Ameritrade, and the Bank's share of Schwab's
restructuring charges are recorded in the Corporate
segment.
|
5
|
The Bank's share of
Schwab's earnings is reported with a one month lag. Refer to Note
12 of the 2023 Consolidated Financial Statements for further
details.
|
6
|
Total assets as at
October 31, 2023 and October 31, 2022 have been derived
from the 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 (or resuming)
receiving annual and quarterly reports
|
Transfer
Agent:
TSX Trust
Company
301-100 Adelaide Street
West
Toronto, ON M5H 4H1
1-800-387-0825 (Canada and U.S. only)
or
416-682-3860
Facsimile:
1-888-249-6189
shareholderinquiries@tmx.com or
http://www.tsxtrust.com
|
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 (or resuming) receiving annual and quarterly
reports
|
Co-Transfer Agent
and Registrar:
Computershare Trust
Company, N.A.
P.O. Box 43006
Providence, RI
02940-3006
or
Computershare Trust
Company, N.A.
150 Royall
Street
Canton, MA
02021
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/investor
|
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.
Annual Report on Form 40-F (U.S.)
A copy of the Bank's
Annual Report on Form 40-F for fiscal 2023 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 2023 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, supplemental regulatory disclosure, and the
2023 Consolidated Financial Statements and MD&A documents on
the TD website at www.td.com/investor/.
General Information
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
Media contacts: https://stories.td.com/media-contacts
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on November 30, 2023.
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, 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 on
December 1, 2023 before 1:30 p.m.
ET. A listen-only telephone line is available at
416-641-6150 or 1-866-696-5894 (toll free) and the passcode is
2727354#.
The audio webcast and presentations will be archived
at www.td.com/investor. Replay of the teleconference will be
available from 5:00 p.m. ET on
November 30, 2023, until 11:59
p.m. ET on December 15, 2023
by calling 905-694-9451 or 1-800-408-3053 (toll free). The passcode
is 7300743#.
Annual Meeting
Thursday, April 18, 2024
Toronto, Ontario
Record Date for Notice and Voting:
February 20, 2024
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
assets and serves over 27.5 million customers in four key
businesses operating in a number of locations in financial centres
around the globe: Canadian Personal and Commercial Banking,
including TD Canada Trust and TD Auto Finance Canada; 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; Wealth Management and Insurance,
including TD Wealth (Canada),
TD Direct Investing, and TD Insurance; and Wholesale Banking,
including TD Securities and TD Cowen. TD also ranks among the
world's leading online financial services firms, with more than 16
million active online and mobile customers. TD had $1.96 trillion in assets on October 31, 2023. The Toronto-Dominion Bank
trades under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group