TD Bank Group Reports Second Quarter 2023 Results Report to Shareholders • Three and six months ended April 30, 2023 |
• |
Reported diluted earnings per share were $1.72, compared with $2.07. |
• |
Adjusted diluted earnings per share were $1.94, compared with $2.02. |
• |
Reported net income was $3,351 million, compared with $3,811 million. |
• |
Adjusted net income was $3,752 million, compared with $3,714 million. |
• |
Reported diluted earnings per share were $2.54, compared with $4.09. |
• |
Adjusted diluted earnings per share were $4.17, compared with $4.09. |
• |
Reported net income was $4,933 million, compared with $7,544 million. |
• |
Adjusted net income was $7,907 million, compared with $7,547 million. |
• |
Amortization of acquired intangibles of $79 million ($67 million after-tax or 3 cents per share), compared with $60 million ($54 million after-tax or 3 cents per share) in the second quarter last year. |
• |
Acquisition and integration charges related to the Schwab transaction of $30 million ($26 million after-tax or 1 cent per share), compared with $20 million ($18 million after-tax or 1 cent per share) in the second quarter last year. |
• |
Acquisition and integration-related charges for acquisitions of $227 million ($179 million after-tax or 10 cents per share). |
• |
Mitigation of impact from interest rate volatility to closing capital on First Horizon acquisition, net loss of $134 million ($101 million after-tax or 6 cents per share). |
• |
Foreign exchange loss related to the Stanford litigation settlement of $39 million ($28 million after-tax or 2 cents per share). |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 1 |
1 |
Investor Economics Retail Brokerage and Distribution Quarterly Update, Winter 2023 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 2 |
Type of Risk |
Topic |
EDTF Disclosure |
Page | |||||||||
RTS Second Quarter 2023 |
SFI Second Quarter 2023 |
SRD Second Quarter 2023 |
Annual Report 2022 | |||||||||
General |
1 |
Present all related risk information together in any particular report. |
Refer to below for location of disclosures | |||||||||
2 |
The bank’s risk terminology and risk measures and present key parameter values used. |
82-87, 91, 97-100, 111-113 | ||||||||||
3 |
Describe and discuss top and emerging risks. |
75-81 | ||||||||||
4 |
Outline plans to meet each new key regulatory ratio once applicable rules are finalized. |
30, 43 | 71, 108 | |||||||||
Risk Governance and Risk Management and Business Model |
5 |
Summarize the bank’s risk management organization, processes, and key functions. |
83-86 | |||||||||
6 |
Description of the bank’s risk culture and procedures applied to support the culture. |
82-83 | ||||||||||
7 |
Description of key risks that arise from the bank’s business models and activities. |
70, 82, 87-114 | ||||||||||
8 |
Description of stress testing within the bank’s risk governance and capital frameworks. |
33 | 69, 86, 94,111 | |||||||||
Capital Adequacy and Risk Weighted Assets |
9 |
Pillar 1 capital requirements and the impact for global systemically important banks. |
28-30, 80-81 | 1-3, 6 |
66-68, 71-72, 220 | |||||||
10 |
Composition of capital and reconciliation of accounting balance sheet to the regulatory balance sheet. |
1-3, 5 |
66 | |||||||||
11 |
Flow statement of the movements in regulatory capital. |
4 | ||||||||||
12 |
Discussion of capital planning within a more general discussion of management’s strategic planning. |
67-69, 111 | ||||||||||
13 |
Analysis of how risk-weighted asset (RWA) relate to business activities and related risks. |
9-13 | 69-70 | |||||||||
14 |
Analysis of capital requirements for each method used for calculating RWA. |
10 | 88-91, 93-94 | |||||||||
15 |
Tabulate credit risk in the banking book for Basel asset classes and major portfolios. |
26-41, 46-52 | ||||||||||
16 |
Flow statement reconciling the movements of RWA by risk type. |
11-12 |
||||||||||
17 |
Discussion of Basel III back-testing requirements. |
64 | 90, 94, 98 | |||||||||
Liquidity |
18 |
The bank’s management of liquidity needs and liquidity reserves. |
35-37, 39-40 | 100-102, 104-105 | ||||||||
Funding |
19 |
Encumbered and unencumbered assets in a table by balance sheet category. |
38 | 103, 215 | ||||||||
20 |
Tabulate consolidated total assets, liabilities and off-balance sheet commitments by remaining contractual maturity at the balance sheet date. |
43-45 | 108-110 | |||||||||
21 |
Discussion of the bank’s funding sources and the bank’s funding strategy. |
38-43 | 105-108 | |||||||||
Market Risk |
22 |
Linkage of market risk measures for trading and non-trading portfolio and balance sheet. |
32 | 92 | ||||||||
23 |
Breakdown of significant trading and non-trading market risk factors. |
32-34 | 92, 95-96 | |||||||||
24 |
Significant market risk measurement model limitations and validation procedures. |
33 | 93-96, 98 | |||||||||
25 |
Primary risk management techniques beyond reported risk measures and parameters. |
33 | 93-96 | |||||||||
Credit Risk |
26 |
Provide information that facilitates users’ understanding of the bank’s credit risk profile, including any significant credit risk concentrations. |
25-28, 63-72 | 21-36 | 1-5, 10-11, 13-64 |
53-65, 87-91, 170-177, 187,190-191, 218-219 | ||||||
27 |
Description of the bank’s policies for identifying impaired loans. |
72 | 61, 146-147, 153, 177 | |||||||||
28 |
Reconciliation of the opening and closing balances of impaired loans in the period and the allowance for loan losses. |
26, 66-70 | 25, 29 | 59, 173-175 | ||||||||
29 |
Analysis of the bank’s counterparty credit risks that arise from derivative transactions. |
42-44, 53-57 |
90, 158, 181-183, 187, 190-191 | |||||||||
30 |
Discussion of credit risk mitigation, including collateral held for all sources of credit risk. |
90, 150, 158 | ||||||||||
Other Risks |
31 |
Description of ‘other risk’ types based on management’s classifications and discuss how each one is identified, governed, measured, and managed. |
97-99, 111-114 | |||||||||
32 |
Discuss publicly known risk events related to other risks. |
78, 81 | 81, 212-214 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 3 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 4 |
(millions of Canadian dollars, except as noted) |
For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Results of operations |
||||||||||||||||||||
Total revenue – reported |
$ |
12,366 |
$ | 12,226 | $ | 11,263 | $ |
24,592 |
$ | 22,544 | ||||||||||
Total revenue – adjusted 1 |
12,539 |
13,102 | 11,039 | 25,641 |
22,320 | |||||||||||||||
Provision for (recovery of) credit losses |
599 |
690 | 27 | 1,289 |
99 | |||||||||||||||
Insurance claims and related expenses |
804 |
976 | 592 | 1,780 |
1,348 | |||||||||||||||
Non-interest expenses – reported |
6,987 |
8,316 | 6,033 | 15,303 |
12,000 | |||||||||||||||
Non-interest expenses – adjusted1 |
6,693 |
6,541 | 5,999 | 13,234 |
11,896 | |||||||||||||||
Net income – reported |
3,351 |
1,582 | 3,811 | 4,933 |
7,544 | |||||||||||||||
Net income – adjusted 1 |
3,752 |
4,155 | 3,714 | 7,907 |
7,547 | |||||||||||||||
Financial position |
||||||||||||||||||||
Total loans net of allowance for loan losses |
$ |
849.6 |
$ | 836.7 | $ | 765.0 | $ |
849.6 |
$ | 765.0 | ||||||||||
Total assets |
1,926.5 |
1,928.3 | 1,825.3 | 1,926.5 |
1,825.3 | |||||||||||||||
Total deposits |
1,189.4 |
1,220.6 | 1,183.7 | 1,189.4 |
1,183.7 | |||||||||||||||
Total equity |
116.1 |
111.8 | 99.4 | 116.1 |
99.4 | |||||||||||||||
Total risk-weighted assets 2 |
549.4 |
531.6 | 489.0 | 549.4 |
489.0 | |||||||||||||||
Financial ratios |
||||||||||||||||||||
Return on common equity (ROE) – reported 3 |
12.5 |
% |
5.9 | % | 16.4 | % | 9.2 |
% |
15.8 | % | ||||||||||
Return on common equity – adjusted 1 |
14.1 |
16.1 | 15.9 | 15.1 |
15.8 | |||||||||||||||
Return on tangible common equity (ROTCE) 1 |
16.8 |
8.0 | 22.1 | 12.4 |
21.4 | |||||||||||||||
Return on tangible common equity – adjusted 1 |
18.5 |
21.1 | 21.2 | 19.8 |
21.1 | |||||||||||||||
Efficiency ratio – reported 3 |
56.5 |
68.0 | 53.6 | 62.2 |
53.2 | |||||||||||||||
Efficiency ratio – adjusted 1,3 |
53.4 |
49.9 | 54.3 | 51.6 |
53.3 | |||||||||||||||
Provision for (recovery of) credit losses as a % of net average loans and acceptances |
0.28 |
0.32 | 0.01 | 0.30 |
0.03 | |||||||||||||||
Common share information – reported |
||||||||||||||||||||
Per share earnings |
||||||||||||||||||||
Basic |
$ |
1.72 |
$ | 0.82 | $ | 2.08 | $ |
2.54 |
$ | 4.10 | ||||||||||
Diluted |
1.72 |
0.82 | 2.07 | 2.54 |
4.09 | |||||||||||||||
Dividends per share |
0.96 |
0.96 | 0.89 | 1.92 |
1.78 | |||||||||||||||
Book value per share 3 |
57.04 |
55.01 | 51.49 | 57.04 |
51.49 | |||||||||||||||
Closing share price 4 |
82.07 |
92.06 | 92.79 | 82.07 |
92.79 | |||||||||||||||
Shares outstanding (millions) |
||||||||||||||||||||
Average basic |
1,828.3 |
1,820.7 | 1,804.7 | 1,824.4 |
1,812.8 | |||||||||||||||
Average diluted |
1,830.3 |
1,823.1 | 1,808.3 | 1,826.6 |
1,816.5 | |||||||||||||||
End of period |
1,838.5 |
1,828.9 | 1,803.9 | 1,838.5 |
1,803.9 | |||||||||||||||
Market capitalization (billions of Canadian dollars) |
$ |
150.9 |
$ | 168.4 | $ | 167.4 | $ |
150.9 |
$ | 167.4 | ||||||||||
Dividend yield 3 |
4.5 |
% |
4.3 | % | 3.6 | % | 4.4 |
% |
3.6 | % | ||||||||||
Dividend payout ratio 3 |
55.8 |
116.5 | 42.8 | 75.4 |
43.8 | |||||||||||||||
Price-earnings ratio 3 |
10.4 |
11.1 | 11.5 | 10.4 |
11.5 | |||||||||||||||
Total shareholder return (1 year) 3 |
(7.5 |
) |
(5.7 | ) | 13.9 | (7.5 |
) |
13.9 | ||||||||||||
Common share information – adjusted 1,3 |
||||||||||||||||||||
Per share earnings |
||||||||||||||||||||
Basic |
$ |
1.94 |
$ | 2.24 | $ | 2.02 | $ |
4.17 |
$ | 4.10 | ||||||||||
Diluted |
1.94 |
2.23 | 2.02 | 4.17 |
4.09 | |||||||||||||||
Dividend payout ratio |
49.5 |
% |
42.9 | % | 43.9 | % | 46.0 |
% |
43.4 | % | ||||||||||
Price-earnings ratio |
9.7 |
10.8 | 11.4 | 9.7 |
11.4 | |||||||||||||||
Capital ratios 2 |
||||||||||||||||||||
Common Equity Tier 1 Capital ratio |
15.3 |
% |
15.5 | % | 14.7 | % | 15.3 |
% |
14.7 | % | ||||||||||
Tier 1 Capital ratio |
17.3 |
17.5 | 15.9 | 17.3 |
15.9 | |||||||||||||||
Total Capital ratio |
19.7 |
19.9 | 18.5 | 19.7 |
18.5 | |||||||||||||||
Leverage ratio |
4.6 |
4.8 | 4.3 | 4.6 |
4.3 | |||||||||||||||
TLAC ratio |
34.2 |
36.6 | 30.4 | 34.2 |
30.4 | |||||||||||||||
TLAC Leverage ratio |
9.0 |
9.9 | 8.1 | 9.0 |
8.1 |
1 |
The Toronto-Dominion Bank (“TD” or the “Bank”) prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current 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 Total Loss Absorbing Capacity (TLAC) guidelines. Refer to the “Capital Position” section of this document for further details. |
3 |
For additional information about this metric, refer to the Glossary of this document. |
4 |
Toronto Stock Exchange (TSX) closing market price. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
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TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 6 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 7 |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Net interest income |
$ |
7,428 |
$ | 7,733 | $ | 6,377 | $ |
15,161 |
$ | 12,679 | ||||||||||
Non-interest income |
4,938 |
4,493 | 4,886 | 9,431 |
9,865 | |||||||||||||||
Total revenue |
12,366 |
12,226 | 11,263 | 24,592 |
22,544 | |||||||||||||||
Provision for (recovery of) credit losses |
599 |
690 | 27 | 1,289 |
99 | |||||||||||||||
Insurance claims and related expenses |
804 |
976 | 592 | 1,780 |
1,348 | |||||||||||||||
Non-interest expenses |
6,987 |
8,316 | 6,033 | 15,303 |
12,000 | |||||||||||||||
Income before income taxes and share of net income from investment in Schwab |
3,976 |
2,244 | 4,611 | 6,220 |
9,097 | |||||||||||||||
Provision for (recovery of) income taxes |
866 |
947 | 1,002 | 1,813 |
1,986 | |||||||||||||||
Share of net income from investment in Schwab |
241 |
285 | 202 | 526 |
433 | |||||||||||||||
Net income – reported |
3,351 |
1,582 | 3,811 | 4,933 |
7,544 | |||||||||||||||
Preferred dividends and distributions on other equity instruments |
210 |
83 | 66 | 293 |
109 | |||||||||||||||
Net income available to common shareholders |
$ |
3,141 |
$ | 1,499 | $ | 3,745 | $ |
4,640 |
$ | 7,435 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 8 |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Operating results – adjusted |
||||||||||||||||||||
Net interest income 6 |
$ |
7,610 |
$ | 7,862 | $ | 6,377 | $ |
15,472 |
$ | 12,679 | ||||||||||
Non-interest income1,6 |
4,929 |
5,240 | 4,662 | 10,169 |
9,641 | |||||||||||||||
Total revenue |
12,539 |
13,102 | 11,039 | 25,641 |
22,320 | |||||||||||||||
Provision for (recovery of) credit losses |
599 |
690 | 27 | 1,289 |
99 | |||||||||||||||
Insurance claims and related expenses |
804 |
976 | 592 | 1,780 |
1,348 | |||||||||||||||
Non-interest expenses2 |
6,693 |
6,541 | 5,999 | 13,234 |
11,896 | |||||||||||||||
Income before income taxes and share of net income from investment in Schwab |
4,443 |
4,895 | 4,421 | 9,338 |
8,977 | |||||||||||||||
Provision for (recovery of) income taxes |
974 |
1,068 | 955 | 2,042 |
1,956 | |||||||||||||||
Share of net income from investment in Schwab 3 |
283 |
328 | 248 | 611 |
526 | |||||||||||||||
Net income – adjusted |
3,752 |
4,155 | 3,714 | 7,907 |
7,547 | |||||||||||||||
Preferred dividends and distributions on other equity instruments |
210 |
83 | 66 | 293 |
109 | |||||||||||||||
Net income available to common shareholders – adjusted |
3,542 |
4,072 | 3,648 | 7,614 |
7,438 | |||||||||||||||
Pre-tax adjustments for items of note |
||||||||||||||||||||
Amortization of acquired intangibles 4 |
(79 |
) |
(54 | ) | (60 | ) | (133 |
) |
(127 | ) | ||||||||||
Acquisition and integration charges related to the Schwab transaction 5 |
(30 |
) |
(34 | ) | (20 | ) | (64 |
) |
(70 | ) | ||||||||||
Acquisition and integration-related charges for acquisitions 2 |
(227 |
) |
(127 | ) | – | (354 |
) |
– | ||||||||||||
Mitigation of impact from interest rate volatility to closing capital on First Horizon acquisition 6 |
(134 |
) |
(876 | ) | – | (1,010 |
) |
– | ||||||||||||
Stanford litigation settlement 1,2 |
(39 |
) |
(1,603 | ) | – | (1,642 |
) |
– | ||||||||||||
Litigation settlement recovery 1 |
– |
– | 224 | – |
224 | |||||||||||||||
Less: Impact of income taxes |
||||||||||||||||||||
Amortization of acquired intangibles |
(12 |
) |
(8 | ) | (6 | ) | (20 |
) |
(14 | ) | ||||||||||
Acquisition and integration charges related to the Schwab transaction 5 |
(4 |
) |
(6 | ) | (2 | ) | (10 |
) |
(11 | ) | ||||||||||
Acquisition and integration-related charges for acquisitions |
(48 |
) |
(31 | ) | – | (79 |
) |
– | ||||||||||||
Mitigation of impact from interest rate volatility to closing capital on First Horizon acquisition |
(33 |
) |
(216 | ) | – | (249 |
) |
– | ||||||||||||
Stanford litigation settlement |
(11 |
) |
(445 | ) | – | (456 |
) |
– | ||||||||||||
Litigation settlement recovery |
– |
– | 55 | – |
55 | |||||||||||||||
Canada Recovery Dividend and impact from increase in the Canadian federal tax rate for fiscal 2022 7 |
– |
585 | – | 585 |
– | |||||||||||||||
Total adjustments for items of note |
(401 |
) |
(2,573 | ) | 97 | (2,974 |
) |
(3 | ) | |||||||||||
Net income available to common shareholders – reported |
$ |
3,141 |
$ | 1,499 | $ | 3,745 | $ |
4,640 |
$ | 7,435 |
1 |
Adjusted non-interest income excludes the following item of note: |
i. | Stanford litigation settlement – Q2 2023: $39 million. This reflects the foreign exchange loss and is reported in the Corporate segment. Refer to the “Significant and Subsequent Events” section for further details. |
ii. | In Q2 2022, the Bank reached a settlement in TD Bank, N.A. v. Lloyd’s Underwriter et al., |
2 |
Adjusted non-interest expenses exclude the following items of note related to the Bank’s asset acquisitions and business combinations: |
i. | Amortization of acquired intangibles – Q2 2023: $49 million, Q1 2023: $24 million, Q2 2022: $26 million, Q1 2022: $33 million. These charges are reported in the Corporate segment; |
ii. | The Bank’s own integration and acquisition costs related to the Schwab transaction – Q2 2023: $18 million, Q1 2023: $21 million, Q2 2022: $8 million, Q1 2022: $37 million. These costs are reported in the Corporate segment; and |
iii. | Acquisition and integration-related charges for acquisitions – Q2 2023: $227 million, Q1 2023: $127 million. These charges are primarily related to professional services and other incremental operating expenses for various acquisitions, and are reported in the U.S. Retail and Wholesale Banking segments. |
iv. | Stanford litigation settlement – Q1 2023: $1,603 million. This is reported in the Corporate segment. Refer to the “Significant and Subsequent Events” section for further details. |
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 both items is reported in the Corporate segment: |
i. | Amortization of Schwab-related acquired intangibles – Q2 2023: $30 million, Q1 2023: $30 million, Q2 2022: $34 million, Q1 2022: $34 million; and |
ii. | The Bank’s share of acquisition and integration charges associated with Schwab’s acquisition of TD Ameritrade – Q2 2023: $12 million, Q1 2023: $13 million, Q2 2022: $12 million, Q1 2022: $13 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 |
Acquisition and integration charges related to the Schwab transaction include the Bank’s own integration and acquisition costs, as well as the Bank’s share of acquisition and integration charges associated with Schwab’s acquisition of TD Ameritrade on an after-tax basis, both reported in the Corporate segment. Refer to footnotes 2 and 3 for amounts. |
6 |
Mitigation of impact from interest rate volatility to closing capital on First Horizon acquisition includes the following components, reported in the Corporate segment: i) mark-to-market non-interest income – Q2 2023: ($263) million, Q1 2023: ($998) million ii) basis adjustment amortization related to de-designated fair value hedge accounting relationships, recorded in net interest income – Q2 2023: $129 million, Q1 2023: $122 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 – Q2 2023: $311 million, Q1 2023: $251 million. Refer to the “Significant and Subsequent Events” section for further details. |
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. Refer to the “Significant and Subsequent Events” section for further details. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 9 |
(Canadian dollars) |
For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Basic earnings per share – reported |
$ |
1.72 |
$ | 0.82 | $ | 2.08 | $ |
2.54 |
$ | 4.10 | ||||||||||
Adjustments for items of note |
0.22 |
1.41 | (0.05 | ) | 1.63 |
– | ||||||||||||||
Basic earnings per share – adjusted |
$ |
1.94 |
$ | 2.24 | $ | 2.02 | $ |
4.17 |
$ | 4.10 | ||||||||||
Diluted earnings per share – reported |
$ |
1.72 |
$ | 0.82 | $ | 2.07 | $ |
2.54 |
$ | 4.09 | ||||||||||
Adjustments for items of note |
0.22 |
1.41 | (0.05 | ) | 1.63 |
– | ||||||||||||||
Diluted earnings per share – adjusted |
$ |
1.94 |
$ | 2.23 | $ | 2.02 | $ |
4.17 |
$ | 4.09 |
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. |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Schwab 1 |
$ |
30 |
$ | 30 | $ | 34 | $ |
60 |
$ | 68 | ||||||||||
Wholesale Banking related intangibles |
27 |
7 | 6 | 34 |
12 | |||||||||||||||
Other |
10 |
9 | 14 | 19 |
33 | |||||||||||||||
Included as items of note |
67 |
46 | 54 | 113 |
113 | |||||||||||||||
Software and asset servicing rights |
92 |
90 | 96 | 182 |
193 | |||||||||||||||
Amortization of intangibles, net of income taxes |
$ |
159 |
$ | 136 | $ | 150 | $ |
295 |
$ | 306 |
1 |
Included in Share of net income from investment in Schwab. |
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
January 31 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
||||||||||||||||
Average common equity |
$ |
102,686 |
$ | 100,337 | $ | 93,922 | $ |
101,642 |
$ | 94,674 | ||||||||||
Net income available to common shareholders – reported |
3,141 |
1,499 | 3,745 | 4,640 |
7,435 | |||||||||||||||
Items of note, net of income taxes |
401 |
2,573 | (97 | ) | 2,974 |
3 | ||||||||||||||
Net income available to common shareholders – adjusted |
$ |
3,542 |
$ | 4,072 | $ | 3,648 | $ |
7,614 |
$ | 7,438 | ||||||||||
Return on common equity – reported |
12.5 |
% |
5.9 | % | 16.4 | % | 9.2 |
% |
15.8 | % | ||||||||||
Return on common equity – adjusted |
14.1 |
16.1 | 15.9 | 15.1 |
15.8 |
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Average common equity |
$ |
102,686 |
$ | 100,337 | $ | 93,922 | $ |
101,642 |
$ | 94,674 | ||||||||||
Average goodwill |
17,835 |
17,486 | 16,577 | 17,713 |
16,539 | |||||||||||||||
Average imputed goodwill and intangibles on investments in Schwab |
6,142 |
6,160 | 6,577 | 6,163 |
6,577 | |||||||||||||||
Average other acquired intangibles 1 |
583 |
442 | 498 | 525 |
512 | |||||||||||||||
Average related deferred tax liabilities |
(210 |
) |
(174 | ) | (171 | ) | (195 |
) |
(172 | ) | ||||||||||
Average tangible common equity |
78,336 |
76,423 | 70,441 | 77,436 |
71,218 | |||||||||||||||
Net income available to common shareholders – reported |
3,141 |
1,499 | 3,745 | 4,640 |
7,435 | |||||||||||||||
Amortization of acquired intangibles, net of income taxes |
67 |
46 | 54 | 113 |
113 | |||||||||||||||
Net income available to common shareholders adjusted for amortization of acquired intangibles, net of income taxes |
3,208 |
1,545 | 3,799 | 4,753 |
7,548 | |||||||||||||||
Other items of note, net of income taxes |
334 |
2,527 | (151 | ) | 2,861 |
(110 | ) | |||||||||||||
Net income available to common shareholders – adjusted |
$ |
3,542 |
$ | 4,072 | $ | 3,648 | $ |
7,614 |
$ | 7,438 | ||||||||||
Return on tangible common equity |
16.8 |
% |
8.0 | % | 22.1 | % | 12.4 |
% |
21.4 | % | ||||||||||
Return on tangible common equity – adjusted |
18.5 |
21.1 | 21.2 | 19.8 |
21.1 |
1 |
Excludes intangibles relating to software and asset servicing rights. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 10 |
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||
April 30, 2023 vs. April 30, 2022 Increase (Decrease) |
April 30, 2023 vs. April 30, 2022 Increase (Decrease) |
|||||||
U.S. Retail Bank |
||||||||
Total revenue – reported |
$ |
231 |
$ |
463 |
||||
Total revenue – adjusted |
231 |
463 |
||||||
Non-interest expenses – reported |
132 |
259 |
||||||
Non-interest expenses – adjusted1 |
122 |
243 |
||||||
Net income – reported, after-tax |
75 |
154 |
||||||
Net income – adjusted, after-tax 1 |
82 |
166 |
||||||
Share of net income from investment in Schwab 2 |
16 |
37 |
||||||
U.S. Retail segment net income – reported, after-tax |
91 |
191 |
||||||
U.S. Retail segment net income – adjusted, after-tax 1 |
98 |
203 |
||||||
Earnings per share |
||||||||
Basic – reported |
$ |
0.05 |
$ |
0.10 |
||||
Basic – adjusted 1 |
0.05 |
0.11 |
||||||
Diluted – reported |
0.05 |
0.10 |
||||||
Diluted – adjusted 1 |
0.05 |
0.11 |
Average foreign exchange rate (equivalent of CAD $1.00) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30 2023 |
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| |||||||||
U.S. dollar |
$ |
0.739 |
$ | 0.789 | $ |
0.740 |
$ | 0.790 |
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. |
• | Adjusted diluted EPS for the six months ended April 30, 2023, increased 2% from the same period last year. |
• | Adjusted ROTCE for the six months ended April 30, 2023, was 19.8%. |
• | For the twelve months ended April 30, 2023, the total shareholder return was -7.5% compared to the Canadian peer2 average of -6.3%. |
2 |
Canadian peers include Bank of Montreal, Canadian Imperial Bank of Commerce, Royal Bank of Canada, and The Bank of Nova Scotia. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 11 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 12 |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Provision for (recovery of) credit losses – Stage 3 (impaired) |
||||||||||||||||||||
Canadian Personal and Commercial Banking |
$ |
234 |
$ | 220 | $ | 163 | $ |
454 |
$ | 313 | ||||||||||
U.S. Retail |
186 |
212 | 96 | 398 |
221 | |||||||||||||||
Wealth Management and Insurance |
1 |
– | – | 1 |
– | |||||||||||||||
Wholesale Banking |
5 |
1 | (1 | ) | 6 |
(5 | ) | |||||||||||||
Corporate 2 |
125 |
120 | 56 | 245 |
114 | |||||||||||||||
Total provision for (recovery of) credit losses – Stage 3 |
551 |
553 | 314 | 1,104 |
643 | |||||||||||||||
Provision for (recovery of) credit losses – Stage 1 and Stage 2 performing |
||||||||||||||||||||
Canadian Personal and Commercial Banking |
13 |
107 | (103 | ) | 120 |
(221 | ) | |||||||||||||
U.S. Retail |
4 |
(12 | ) | (114 | ) | (8 |
) |
(218 | ) | |||||||||||
Wealth Management and Insurance |
– |
– | – | – |
1 | |||||||||||||||
Wholesale Banking |
7 |
31 | (8 | ) | 38 |
(9 | ) | |||||||||||||
Corporate 2 |
24 |
11 | (62 | ) | 35 |
(97 | ) | |||||||||||||
Total provision for (recovery of) credit losses – Stage 1 and Stage 2 |
48 |
137 | (287 | ) | 185 |
(544 | ) | |||||||||||||
Total provision for (recovery of) credit losses |
$ |
599 |
$ | 690 | $ | 27 | $ |
1,289 |
$ | 99 |
1 |
Includes PCL for off-balance sheet instruments. |
2 |
Includes PCL on the retailer program partners’ share of the U.S. strategic cards portfolio. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 13 |
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||||||||||||||||||||||||||
April 30 2023 |
January 31 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
||||||||||||||||||||||||||||||||||||
Income taxes at Canadian statutory income tax rate |
$ |
1,104 |
27.8 |
% |
$ | 623 | 27.8 | % | $ | 1,211 | 26.3 | % | $ |
1,727 |
27.8 |
% |
$ | 2,389 | 26.3 | % | ||||||||||||||||||||
Increase (decrease) resulting from: |
||||||||||||||||||||||||||||||||||||||||
Dividends received |
(26 |
) |
(0.7 |
) |
(27 | ) | (1.2 | ) | (33 | ) | (0.7 | ) | (53 |
) |
(0.9 |
) |
(65 | ) | (0.7 | ) | ||||||||||||||||||||
Rate differentials on international operations 1 |
(217 |
) |
(5.5 |
) |
(227 | ) | (10.1 | ) | (188 | ) | (4.1 | ) | (444 |
) |
(7.1 |
) |
(359 | ) | (3.9 | ) | ||||||||||||||||||||
Other |
5 |
0.2 |
578 | 25.7 | 12 | 0.2 | 583 |
9.3 |
21 | 0.1 | ||||||||||||||||||||||||||||||
Provision for income taxes and effective income tax rate – reported |
$ |
866 |
21.8 |
% |
$ | 947 | 42.2 | % | $ | 1,002 | 21.7 | % | $ |
1,813 |
29.1 |
% |
$ | 1,986 | 21.8 | % | ||||||||||||||||||||
Total adjustments for items of note |
108 |
121 | (47 | ) | 229 |
(30 | ) | |||||||||||||||||||||||||||||||||
Provision for income taxes and effective income tax rate – adjusted |
$ |
974 |
21.9 |
% |
$ | 1,068 | 21.8 | % | $ | 955 | 21.6 | % | $ |
2,042 |
21.9 |
% |
$ | 1,956 | 21.8 | % |
1 |
These amounts reflect tax credits as well as international business mix. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 14 |
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
January 31 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
||||||||||||||||
Net interest income |
$ |
3,377 |
$ | 3,539 | $ | 2,933 | $ |
6,916 |
$ | 5,809 | ||||||||||
Non-interest income |
1,027 |
1,050 | 1,019 | 2,077 |
2,063 | |||||||||||||||
Total revenue |
4,404 |
4,589 | 3,952 | 8,993 |
7,872 | |||||||||||||||
Provision for (recovery of) credit losses – impaired |
234 |
220 | 163 | 454 |
313 | |||||||||||||||
Provision for (recovery of) credit losses – performing |
13 |
107 | (103 | ) | 120 |
(221 | ) | |||||||||||||
Total provision for (recovery of) credit losses |
247 |
327 | 60 | 574 |
92 | |||||||||||||||
Non-interest expenses |
1,903 |
1,863 | 1,759 | 3,766 |
3,448 | |||||||||||||||
Provision for (recovery of) income taxes |
629 |
670 | 565 | 1,299 |
1,146 | |||||||||||||||
Net income |
$ |
1,625 |
$ | 1,729 | $ | 1,568 | $ |
3,354 |
$ | 3,186 | ||||||||||
Selected volumes and ratios |
||||||||||||||||||||
Return on common equity 1 |
37.4 |
% |
39.9 | % | 41.8 | % | 38.6 |
% |
42.4 | % | ||||||||||
Net interest margin (including on securitized assets) 2 |
2.74 |
2.80 | 2.52 | 2.77 |
2.48 | |||||||||||||||
Efficiency ratio |
43.2 |
40.6 | 44.5 | 41.9 |
43.8 | |||||||||||||||
Number of Canadian retail branches |
1,060 |
1,060 | 1,060 | 1,060 |
1,060 | |||||||||||||||
Average number of full-time equivalent staff |
28,797 |
28,803 | 28,150 | 28,800 |
28,008 |
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 and the Glossary of this document for additional information about these metrics. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 15 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 16 |
(millions of dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||||||
Canadian Dollars |
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| |||||||||
Net interest income |
$ |
3,034 |
$ | 3,169 | $ | 2,079 | $ |
6,203 |
$ | 4,194 | ||||||||||
Non-interest income – reported |
558 |
596 | 864 | 1,154 |
1,535 | |||||||||||||||
Non-interest income – adjusted1 |
558 |
596 | 640 | 1,154 |
1,311 | |||||||||||||||
Total revenue – reported |
3,592 |
3,765 | 2,943 | 7,357 |
5,729 | |||||||||||||||
Total revenue – adjusted 1 |
3,592 |
3,765 | 2,719 | 7,357 |
5,505 | |||||||||||||||
Provision for (recovery of) credit losses – impaired |
186 |
212 | 96 | 398 |
221 | |||||||||||||||
Provision for (recovery of) credit losses – performing |
4 |
(12 | ) | (114 | ) | (8 |
) |
(218 | ) | |||||||||||
Total provision for (recovery of) credit losses |
190 |
200 | (18 | ) | 390 |
3 | ||||||||||||||
Non-interest expenses – reported |
2,050 |
2,071 | 1,632 | 4,121 |
3,229 | |||||||||||||||
Non-interest expenses – adjusted1,2 |
1,896 |
1,965 | 1,632 | 3,861 |
3,229 | |||||||||||||||
Provision for (recovery of) income taxes – reported |
190 |
206 | 186 | 396 |
334 | |||||||||||||||
Provision for (recovery of) income taxes – adjusted 1 |
228 |
232 | 131 | 460 |
279 | |||||||||||||||
U.S. Retail Bank net income – reported |
1,162 |
1,288 | 1,143 | 2,450 |
2,163 | |||||||||||||||
U.S. Retail Bank net income – adjusted 1 |
1,278 |
1,368 | 974 | 2,646 |
1,994 | |||||||||||||||
Share of net income from investment in Schwab 3,4 |
250 |
301 | 224 | 551 |
476 | |||||||||||||||
Net income – reported |
$ |
1,412 |
$ | 1,589 | $ | 1,367 | $ |
3,001 |
$ | 2,639 | ||||||||||
Net income – adjusted 1 |
1,528 |
1,669 | 1,198 | 3,197 |
2,470 | |||||||||||||||
U.S. Dollars |
||||||||||||||||||||
Net interest income |
$ |
2,241 |
$ | 2,349 | $ | 1,641 | $ |
4,590 |
$ | 3,312 | ||||||||||
Non-interest income – reported |
413 |
442 | 682 | 855 |
1,212 | |||||||||||||||
Non-interest income – adjusted1 |
413 |
442 | 505 | 855 |
1,035 | |||||||||||||||
Total revenue – reported |
2,654 |
2,791 | 2,323 | 5,445 |
4,524 | |||||||||||||||
Total revenue – adjusted 1 |
2,654 |
2,791 | 2,146 | 5,445 |
4,347 | |||||||||||||||
Provision for (recovery of) credit losses – impaired |
137 |
158 | 75 | 295 |
174 | |||||||||||||||
Provision for (recovery of) credit losses – performing |
3 |
(9 | ) | (90 | ) | (6 |
) |
(172 | ) | |||||||||||
Total provision for (recovery of) credit losses |
140 |
149 | (15 | ) | 289 |
2 | ||||||||||||||
Non-interest expenses – reported |
1,514 |
1,535 | 1,289 | 3,049 |
2,550 | |||||||||||||||
Non-interest expenses – adjusted1,2 |
1,401 |
1,457 | 1,289 | 2,858 |
2,550 | |||||||||||||||
Provision for (recovery of) income taxes – reported |
141 |
152 | 147 | 293 |
264 | |||||||||||||||
Provision for (recovery of) income taxes – adjusted 1 |
169 |
171 | 103 | 340 |
220 | |||||||||||||||
U.S. Retail Bank net income – reported |
859 |
955 | 902 | 1,814 |
1,708 | |||||||||||||||
U.S. Retail Bank net income – adjusted 1 |
944 |
1,014 | 769 | 1,958 |
1,575 | |||||||||||||||
Share of net income from investment in Schwab 3,4 |
185 |
222 | 177 | 407 |
377 | |||||||||||||||
Net income – reported |
$ |
1,044 |
$ | 1,177 | $ | 1,079 | $ |
2,221 |
$ | 2,085 | ||||||||||
Net income – adjusted 1 |
1,129 |
1,236 | 946 | 2,365 |
1,952 | |||||||||||||||
Selected volumes and ratios |
||||||||||||||||||||
Return on common equity – reported 5 |
14.1 |
% |
15.5 | % | 14.2 | % | 14.8 |
% |
13.4 | % | ||||||||||
Return on common equity – adjusted 1,5 |
15.3 |
16.3 | 12.5 | 15.8 |
12.6 | |||||||||||||||
Net interest margin 1,6 |
3.25 |
3.29 | 2.21 | 3.27 |
2.21 | |||||||||||||||
Efficiency ratio – reported |
57.0 |
55.0 | 55.5 | 56.0 |
56.4 | |||||||||||||||
Efficiency ratio – adjusted 1 |
52.8 |
52.2 | 60.1 | 52.5 |
58.7 | |||||||||||||||
Assets under administration (billions of U.S. dollars) 7 |
$ |
36 |
$ | 35 | $ | 32 | $ |
36 |
$ | 32 | ||||||||||
Assets under management (billions of U.S. dollars) 7 |
35 |
35 | 37 | 35 |
37 | |||||||||||||||
Number of U.S. retail stores |
1,164 |
1,161 | 1,156 | 1,164 |
1,156 | |||||||||||||||
Average number of full-time equivalent staff |
28,510 |
27,694 | 25,366 | 28,095 |
25,141 |
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 acquisition and integration-related charges for the First Horizon acquisition – Q2 2023: $154 million or US$113 million ($116 million or US$85 million after-tax); Q1 2023: $106 million or US$78 million ($80 million or US$59 million after-tax). |
3 |
The Bank’s share of Schwab’s earnings is reported with a one-month lag. Refer to Note 7 of the Bank’s second quarter 2023 Interim Consolidated Financial Statements for further details. |
4 |
The after-tax amounts for amortization of acquired intangibles and the Bank’s share of acquisition and integration charges associated with Schwab’s acquisition of TD Ameritrade are recorded in the Corporate segment. |
5 |
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. |
6 |
Net interest margin is calculated by dividing net interest income by average interest-earning assets. For the U.S. Retail segment, this calculation excludes the impact related to sweep deposits arrangements and intercompany deposits and cash collateral. The value of tax-exempt interest income is adjusted to its equivalent before-tax value. For investment securities, the adjustment to fair value is included in the calculation of average interest-earning assets. Management believes this calculation better reflects segment performance. 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 of this document. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 17 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 18 |
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Net interest income |
$ |
258 |
$ | 281 | $ | 215 | $ |
539 |
$ | 424 | ||||||||||
Non-interest income |
2,477 |
2,621 | 2,456 | 5,098 |
5,045 | |||||||||||||||
Total revenue |
2,735 |
2,902 | 2,671 | 5,637 |
5,469 | |||||||||||||||
Provision for (recovery of) credit losses – impaired |
1 |
– | – | 1 |
– | |||||||||||||||
Provision for (recovery of) credit losses – performing |
– |
– | – | – |
1 | |||||||||||||||
Total provision for (recovery of) credit losses |
1 |
– | – | 1 |
1 | |||||||||||||||
Insurance claims and related expenses |
804 |
976 | 592 | 1,780 |
1,348 | |||||||||||||||
Non-interest expenses |
1,166 |
1,182 | 1,173 | 2,348 |
2,353 | |||||||||||||||
Provision for (recovery of) income taxes |
201 |
194 | 238 | 395 |
463 | |||||||||||||||
Net income |
$ |
563 |
$ | 550 | $ | 668 | $ |
1,113 |
$ | 1,304 | ||||||||||
Selected volumes and ratios |
||||||||||||||||||||
Return on common equity 1 |
42.6 |
% |
41.3 | % | 52.9 | % | 41.9 |
% |
51.6 | % | ||||||||||
Efficiency ratio |
42.6 |
40.7 | 43.9 | 41.7 |
43.0 | |||||||||||||||
Assets under administration (billions of Canadian dollars) 2 |
$ |
549 |
$ | 541 | $ | 537 | $ |
549 |
$ | 537 | ||||||||||
Assets under management (billions of Canadian dollars) |
422 |
414 | 411 | 422 |
411 | |||||||||||||||
Average number of full-time equivalent staff |
16,345 |
16,293 | 15,557 | 16,318 |
15,315 |
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 |
Includes AUA administered by TD Investor Services, which is part of the Canadian Personal and Commercial Banking segment. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 19 |
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
|
January 31 2023 |
|
|
April 30 2022 |
|
April 30 2023 |
|
April 30 2022 |
| ||||||||||
Net interest income (TEB) |
$ |
498 |
$ | 525 | $ | 759 | $ |
1,023 |
$ | 1,468 | ||||||||||
Non-interest income |
919 |
820 | 491 | 1,739 |
1,128 | |||||||||||||||
Total revenue |
1,417 |
1,345 | 1,250 | 2,762 |
2,596 | |||||||||||||||
Provision for (recovery of) credit losses – impaired |
5 |
1 | (1 | ) | 6 |
(5 | ) | |||||||||||||
Provision for (recovery of) credit losses – performing |
7 |
31 | (8 | ) | 38 |
(9 | ) | |||||||||||||
Total provision for (recovery of) credit losses |
12 |
32 | (9 | ) | 44 |
(14 | ) | |||||||||||||
Non-interest expenses – reported |
1,189 |
883 | 776 | 2,072 |
1,540 | |||||||||||||||
Non-interest expenses – adjusted1,2 |
1,116 |
862 | 776 | 1,978 |
1,540 | |||||||||||||||
Provision for (recovery of) income taxes (TEB) – reported |
66 |
99 | 124 | 165 |
277 | |||||||||||||||
Provision for (recovery of) income taxes (TEB) – adjusted 1 |
76 |
104 | 124 | 180 |
277 | |||||||||||||||
Net income – reported |
$ |
150 |
$ | 331 | $ | 359 | $ |
481 |
$ | 793 | ||||||||||
Net income – adjusted |
213 |
347 | 359 | 560 |
793 | |||||||||||||||
Selected volumes and ratios |
||||||||||||||||||||
Trading-related revenue (TEB) 3 |
$ |
482 |
$ | 662 | $ | 680 | $ |
1,144 |
$ | 1,406 | ||||||||||
Average gross lending portfolio (billions of Canadian dollars) 4 |
95.2 |
96.9 | 63.7 | 96.1 |
61.4 | |||||||||||||||
Return on common equity – reported 5 |
4.5 |
% |
9.4 | % | 13.1 | % | 7.0 |
% |
14.6 | % | ||||||||||
Return on common equity – adjusted 1,5 |
6.4 |
9.9 | 13.1 | 8.2 |
14.6 | |||||||||||||||
Efficiency ratio – reported |
83.9 |
65.7 | 62.1 | 75.0 |
59.3 | |||||||||||||||
Efficiency ratio – adjusted 1 |
78.8 |
64.1 | 62.1 | 71.6 |
59.3 | |||||||||||||||
Average number of full-time equivalent staff |
6,510 |
5,365 | 4,950 | 5,937 |
4,941 |
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 acquisition and integration-related charges primarily for the Cowen acquisition – Q2 2023: $73 million ($63 million after-tax), Q1 2023: $21 million ($16 million after-tax). |
3 |
Includes net interest income TEB of $285 million (Q1 2023: $261 million, Q2 2022: $581 million, Q1 2022: $525 million), and trading income (loss) of $197 million (Q1 2023: $401 million, Q2 2022: $99 million, Q1 2022: $201 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 of this document for additional information about this metric. |
4 |
Includes gross loans and bankers’ acceptances relating to Wholesale Banking, excluding letters of credit, cash collateral, credit default swaps, and allowance for credit losses. |
5 |
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. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 20 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 21 |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
January 31 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
||||||||||||||||
Net income (loss) – reported |
$ |
(399 |
) |
$ | (2,617 | ) | $ | (151 | ) | $ |
(3,016 |
) |
$ | (378 | ) | |||||
Adjustments for items of note |
||||||||||||||||||||
Amortization of acquired intangibles before income taxes |
79 |
54 | 60 | 133 |
127 | |||||||||||||||
Acquisition and integration charges related to the Schwab transaction |
30 |
34 | 20 | 64 |
70 | |||||||||||||||
Mitigation of impact from interest rate volatility to closing capital on First Horizon acquisition |
134 |
876 | – | 1,010 |
– | |||||||||||||||
Stanford litigation settlement |
39 |
1,603 | – | 1,642 |
– | |||||||||||||||
Less: impact of income taxes |
||||||||||||||||||||
Canada Recovery Dividend and impact from increase in the Canadian federal tax rate for fiscal 2022 |
– |
(585 | ) | – | (585 |
) |
– | |||||||||||||
Other items of note |
60 |
675 | 8 | 735 |
25 | |||||||||||||||
Net income (loss) – adjusted 1 |
$ |
(177 |
) |
$ | (140 | ) | $ | (79 | ) | $ |
(317 |
) |
$ | (206 | ) | |||||
Decomposition of items included in net income (loss) – adjusted |
||||||||||||||||||||
Net corporate expenses 2 |
$ |
(191 |
) |
$ | (191 | ) | $ | (161 | ) | $ |
(382 |
) |
$ | (329 | ) | |||||
Other |
14 |
51 | 82 | 65 |
123 | |||||||||||||||
Net income (loss) – adjusted 1 |
$ |
(177 |
) |
$ | (140 | ) | $ | (79 | ) | $ |
(317 |
) |
$ | (206 | ) | |||||
Selected volumes |
||||||||||||||||||||
Average number of full-time equivalent staff |
22,656 |
21,844 | 19,180 | 22,244 |
18,588 |
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 of this document. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 22 |
(millions of Canadian dollars, except as noted) | For the three months ended |
|||||||||||||||||||||||||||||||
2023 |
2022 | 2021 | ||||||||||||||||||||||||||||||
Apr. 30 |
Jan. 31 | Oct. 31 | Jul. 31 | Apr. 30 | Jan. 31 | Oct. 31 | Jul. 31 | |||||||||||||||||||||||||
Net interest income |
$ |
7,428 |
$ | 7,733 | $ | 7,630 | $ | 7,044 | $ | 6,377 | $ | 6,302 | $ | 6,262 | $ | 6,004 | ||||||||||||||||
Non-interest income |
4,938 |
4,493 | 7,933 | 3,881 | 4,886 | 4,979 | 4,679 | 4,708 | ||||||||||||||||||||||||
Total revenue |
12,366 |
12,226 | 15,563 | 10,925 | 11,263 | 11,281 | 10,941 | 10,712 | ||||||||||||||||||||||||
Provision for (recovery of) credit losses |
599 |
690 | 617 | 351 | 27 | 72 | (123 | ) | (37 | ) | ||||||||||||||||||||||
Insurance claims and related expenses |
804 |
976 | 723 | 829 | 592 | 756 | 650 | 836 | ||||||||||||||||||||||||
Non-interest expenses |
6,987 |
8,316 | 6,545 | 6,096 | 6,033 | 5,967 | 5,947 | 5,616 | ||||||||||||||||||||||||
Provision for (recovery of) income taxes |
866 |
947 | 1,297 | 703 | 1,002 | 984 | 910 | 922 | ||||||||||||||||||||||||
Share of net income from investment in Schwab |
241 |
285 | 290 | 268 | 202 | 231 | 224 | 170 | ||||||||||||||||||||||||
Net income – reported |
3,351 |
1,582 | 6,671 | 3,214 | 3,811 | 3,733 | 3,781 | 3,545 | ||||||||||||||||||||||||
Pre-tax adjustments for items of note1 |
||||||||||||||||||||||||||||||||
Amortization of acquired intangibles |
79 |
54 | 57 | 58 | 60 | 67 | 74 | 68 | ||||||||||||||||||||||||
Acquisition and integration charges related to the Schwab transaction |
30 |
34 | 18 | 23 | 20 | 50 | 22 | 24 | ||||||||||||||||||||||||
Acquisition and integration-related charges for acquisitions |
227 |
127 | 85 | 29 | – | – | – | – | ||||||||||||||||||||||||
Mitigation of impact from interest rate volatility to closing capital on First Horizon acquisition |
134 |
876 | (2,319 | ) | 678 | – | – | – | – | |||||||||||||||||||||||
Stanford litigation settlement |
39 |
1,603 | – | – | – | – | – | – | ||||||||||||||||||||||||
Gain on sale of Schwab shares |
– |
– | (997 | ) | – | – | – | – | – | |||||||||||||||||||||||
Litigation settlement recovery |
– |
– | – | – | (224 | ) | – | – | – | |||||||||||||||||||||||
Total pre-tax adjustments for items of note |
509 |
2,694 | (3,156 | ) | 788 | (144 | ) | 117 | 96 | 92 | ||||||||||||||||||||||
Less: Impact of income taxes 1,2 |
108 |
121 | (550 | ) | 189 | (47 | ) | 17 | 11 | 9 | ||||||||||||||||||||||
Net income – adjusted 1 |
3,752 |
4,155 | 4,065 | 3,813 | 3,714 | 3,833 | 3,866 | 3,628 | ||||||||||||||||||||||||
Preferred dividends and distributions on other equity instruments |
210 |
83 | 107 | 43 | 66 | 43 | 63 | 56 | ||||||||||||||||||||||||
Net income available to common shareholders – adjusted 1 |
$ |
3,542 |
$ | 4,072 | $ | 3,958 | $ | 3,770 | $ | 3,648 | $ | 3,790 | $ | 3,803 | $ | 3,572 | ||||||||||||||||
(Canadian dollars, except as noted) |
||||||||||||||||||||||||||||||||
Basic earnings per share |
||||||||||||||||||||||||||||||||
Reported |
$ |
1.72 |
$ | 0.82 | $ | 3.62 | $ | 1.76 | $ | 2.08 | $ | 2.03 | $ | 2.04 | $ | 1.92 | ||||||||||||||||
Adjusted 1 |
1.94 |
2.24 | 2.18 | 2.09 | 2.02 | 2.08 | 2.09 | 1.96 | ||||||||||||||||||||||||
Diluted earnings per share |
||||||||||||||||||||||||||||||||
Reported |
1.72 |
0.82 | 3.62 | 1.75 | 2.07 | 2.02 | 2.04 | 1.92 | ||||||||||||||||||||||||
Adjusted 1 |
1.94 |
2.23 | 2.18 | 2.09 | 2.02 | 2.08 | 2.09 | 1.96 | ||||||||||||||||||||||||
Return on common equity – reported |
12.5 |
% |
5.9 | % | 26.5 | % | 13.5 | % | 16.4 | % | 15.3 | % | 15.7 | % | 15.3 | % | ||||||||||||||||
Return on common equity – adjusted 1 |
14.1 |
16.1 | 16.0 | 16.1 | 15.9 | 15.7 | 16.1 | 15.6 | ||||||||||||||||||||||||
(billions of Canadian dollars, except as noted) |
||||||||||||||||||||||||||||||||
Average total assets |
$ |
1,946 |
$ | 1,933 | $ | 1,893 | $ | 1,811 | $ | 1,778 | $ | 1,769 | $ | 1,750 | $ | 1,699 | ||||||||||||||||
Average interest-earning assets 3 |
1,728 |
1,715 | 1,677 | 1,609 | 1,595 | 1,593 | 1,574 | 1,527 | ||||||||||||||||||||||||
Net interest margin – reported |
1.76 |
% |
1.79 | % | 1.81 | % | 1.74 | % | 1.64 | % | 1.57 | % | 1.58 | % | 1.56 | % | ||||||||||||||||
Net interest margin – adjusted 1 |
1.81 |
1.82 | 1.80 | 1.73 | 1.64 | 1.57 | 1.58 | 1.56 |
1 |
For explanations of items of note, refer to the “Non-GAAP Financial Measures – Reconciliation of Adjusted to Reported Net Income” table in the “How We Performed” section of this document. |
2 |
Includes the CRD and impact from increase in the Canadian federal tax rate for fiscal 2022. |
3 |
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 and the Glossary of this document for additional information about these metrics. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 23 |
(millions of Canadian dollars) |
As at |
|||||||
April 30, 2023 |
October 31, 2022 | |||||||
Assets |
||||||||
Cash and Interest-bearing deposits with banks |
$ |
110,198 |
$ | 145,850 | ||||
Trading loans, securities, and other |
157,539 |
143,726 | ||||||
Non-trading financial assets at fair value through profit or loss |
8,546 |
10,946 | ||||||
Derivatives |
75,212 |
103,873 | ||||||
Financial assets designated at fair value through profit or loss |
5,237 |
5,039 | ||||||
Financial assets at fair value through other comprehensive income |
74,009 |
69,675 | ||||||
Debt securities at amortized cost, net of allowance for credit losses |
330,891 |
342,774 | ||||||
Securities purchased under reverse repurchase agreements |
198,076 |
160,167 | ||||||
Loans, net of allowance for loan losses |
849,618 |
831,043 | ||||||
Investment in Schwab |
9,119 |
8,088 | ||||||
Other |
108,007 |
96,347 | ||||||
Total assets |
$ |
1,926,452 |
$ | 1,917,528 | ||||
Liabilities |
||||||||
Trading deposits |
$ |
25,077 |
$ | 23,805 | ||||
Derivatives |
63,706 |
91,133 | ||||||
Financial liabilities designated at fair value through profit or loss |
201,061 |
162,786 | ||||||
Deposits |
1,189,370 |
1,229,970 | ||||||
Obligations related to securities sold under repurchase agreements |
146,959 |
128,024 | ||||||
Subordinated notes and debentures |
11,366 |
11,290 | ||||||
Other |
172,799 |
159,137 | ||||||
Total liabilities |
1,810,338 |
1,806,145 | ||||||
Total equity |
116,114 |
111,383 | ||||||
Total liabilities and equity |
$ |
1,926,452 |
$ | 1,917,528 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 24 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 25 |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||||||
April 30 2023 |
January 31 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
||||||||||||||||
Personal, Business, and Government Loans |
||||||||||||||||||||
Impaired loans as at beginning of period |
$ |
2,591 |
$ | 2,503 | $ | 2,560 | $ |
2,503 |
$ | 2,411 | ||||||||||
Classified as impaired during the period |
1,259 |
1,350 | 937 | 2,609 |
2,124 | |||||||||||||||
Transferred to performing during the period |
(204 |
) |
(240 | ) | (252 | ) | (444 |
) |
(511 | ) | ||||||||||
Net repayments |
(334 |
) |
(361 | ) | (382 | ) | (695 |
) |
(755 | ) | ||||||||||
Disposals of loans |
– |
– | (1 | ) | – |
(1 | ) | |||||||||||||
Amounts written off |
(679 |
) |
(625 | ) | (462 | ) | (1,304 |
) |
(909 | ) | ||||||||||
Exchange and other movements |
26 |
(36 | ) | (3 | ) | (10 |
) |
38 | ||||||||||||
Impaired loans as at end of period |
$ |
2,659 |
$ | 2,591 | $ | 2,397 | $ |
2,659 |
$ | 2,397 |
1 |
Includes customers’ liability under acceptances. |
2 |
Excludes ACI loans. |
3 |
Includes loans that are measured at FVOCI. |
(millions of Canadian dollars, except as noted) | As at |
|||||||||||
April 30 2023 |
January 31 2023 |
April 30 2022 |
||||||||||
Allowance for loan losses for on-balance sheet loans |
||||||||||||
Stage 1 allowance for loan losses |
$ |
2,551 |
$ | 2,569 | $ | 2,346 | ||||||
Stage 2 allowance for loan losses |
3,234 |
3,093 | 3,025 | |||||||||
Stage 3 allowance for loan losses |
859 |
830 | 705 | |||||||||
Total allowance for loan losses for on-balance sheet loans1 |
6,644 |
6,492 | 6,076 | |||||||||
Allowance for off-balance sheet instruments |
||||||||||||
Stage 1 allowance for loan losses |
465 |
456 | 399 | |||||||||
Stage 2 allowance for loan losses |
532 |
527 | 433 | |||||||||
Stage 3 allowance for loan losses |
3 |
2 | 2 | |||||||||
Total allowance for off-balance sheet instruments |
1,000 |
985 | 834 | |||||||||
Allowance for loan losses |
7,644 |
7,477 | 6,910 | |||||||||
Allowance for debt securities |
3 |
2 | 7 | |||||||||
Allowance for credit losses |
$ |
7,647 |
$ | 7,479 | $ | 6,917 | ||||||
Impaired loans, net of allowance 2 |
$ |
1,803 |
$ | 1,764 | $ | 1,695 | ||||||
Net impaired loans as a percentage of net loans 2 |
0.21 |
% |
0.21 | % | 0.22 | % | ||||||
Total allowance for credit losses as a percentage of gross loans and acceptances |
0.87 |
0.86 | 0.87 | |||||||||
Provision for (recovery of) credit losses as a percentage of net average loans and acceptances |
0.28 |
0.32 | 0.01 |
1 |
Includes allowance for loan losses related to loans that are measured at FVOCI of nil as at April 30, 2023 (January 31, 2023 – nil, April 30, 2022 – nil). |
2 |
Credit cards are considered impaired when they are 90 days past due and written off at 180 days past due. |
(millions of Canadian dollars) | As at |
|||||||||||||||||||
Amortizing |
Non-amortizing |
Total |
||||||||||||||||||
Residential Mortgages |
Home equity lines of credit |
Total amortizing real estate secured lending |
Home equity lines of credit |
|||||||||||||||||
April 30, 2023 |
||||||||||||||||||||
Total |
$ |
249,311 |
$ |
83,116 |
$ |
332,427 |
$ |
30,996 |
$ |
363,423 |
||||||||||
October 31, 2022 | ||||||||||||||||||||
Total |
$ | 246,206 | $ | 81,689 | $ | 327,895 | $ | 31,657 | $ | 359,552 |
1 |
Excludes loans classified as trading as the Bank intends to sell the loans immediately or in the near term, and loans designated at FVTPL for which no allowance is recorded. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 26 |
(millions of Canadian dollars, except as noted) | As at |
|||||||||||||||||||||||||||||||||||||||||||||||
Residential mortgages |
Home equity lines of credit |
Total |
||||||||||||||||||||||||||||||||||||||||||||||
Insured 3 |
Uninsured |
Insured 3 |
Uninsured |
Insured 3 |
Uninsured |
|||||||||||||||||||||||||||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||||||||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic provinces |
$ |
2,610 |
1.0 |
% |
$ |
4,234 |
1.7 |
% |
$ |
198 |
0.2 |
% |
$ |
1,783 |
1.6 |
% |
$ |
2,808 |
0.8 |
% |
$ |
6,017 |
1.7 |
% | ||||||||||||||||||||||||
British Columbia 4 |
8,708 |
3.5 |
42,631 |
17.1 |
993 |
0.9 |
20,819 |
18.2 |
9,701 |
2.7 |
63,450 |
17.5 |
||||||||||||||||||||||||||||||||||||
Ontario 4 |
22,531 |
9.1 |
109,818 |
44.0 |
3,371 |
2.9 |
61,994 |
54.2 |
25,902 |
7.1 |
171,812 |
47.2 |
||||||||||||||||||||||||||||||||||||
Prairies 4 |
18,931 |
7.6 |
18,805 |
7.5 |
1,896 |
1.7 |
11,742 |
10.3 |
20,827 |
5.7 |
30,547 |
8.4 |
||||||||||||||||||||||||||||||||||||
Québec |
7,382 |
3.0 |
13,661 |
5.5 |
640 |
0.6 |
10,676 |
9.4 |
8,022 |
2.2 |
24,337 |
6.7 |
||||||||||||||||||||||||||||||||||||
Total Canada |
60,162 |
24.2 |
% |
189,149 |
75.8 |
% |
7,098 |
6.3 |
% |
107,014 |
93.7 |
% |
67,260 |
18.5 |
% |
296,163 |
81.5 |
% | ||||||||||||||||||||||||||||||
United States |
1,270 |
49,674 |
– |
10,025 |
1,270 |
59,699 |
||||||||||||||||||||||||||||||||||||||||||
Total |
$ |
61,432 |
$ |
238,823 |
$ |
7,098 |
$ |
117,039 |
$ |
68,530 |
$ |
355,862 |
||||||||||||||||||||||||||||||||||||
October 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||||||||||||||||||||||||||
Atlantic provinces |
$ | 2,713 | 1.1 | % | $ | 4,117 | 1.7 | % | $ | 227 | 0.2 | % | $ | 1,697 | 1.5 | % | $ | 2,940 | 0.8 | % | $ | 5,814 | 1.6 | % | ||||||||||||||||||||||||
British Columbia 4 |
8,897 | 3.6 | 41,612 | 16.9 | 1,265 | 1.1 | 20,386 | 18.0 | 10,162 | 2.8 | 61,998 | 17.2 | ||||||||||||||||||||||||||||||||||||
Ontario 4 |
23,146 | 9.4 | 106,940 | 43.4 | 4,619 | 4.1 | 60,357 | 53.2 | 27,765 | 7.8 | 167,297 | 46.6 | ||||||||||||||||||||||||||||||||||||
Prairies 4 |
19,259 | 7.8 | 18,391 | 7.5 | 2,107 | 1.9 | 11,734 | 10.4 | 21,366 | 5.9 | 30,125 | 8.4 | ||||||||||||||||||||||||||||||||||||
Québec |
7,670 | 3.1 | 13,461 | 5.5 | 735 | 0.6 | 10,219 | 9.0 | 8,405 | 2.3 | 23,680 | 6.6 | ||||||||||||||||||||||||||||||||||||
Total Canada |
61,685 | 25.0 | % | 184,521 | 75.0 | % | 8,953 | 7.9 | % | 104,393 | 92.1 | % | 70,638 | 19.6 | % | 288,914 | 80.4 | % | ||||||||||||||||||||||||||||||
United States |
1,127 | 46,591 | – | 9,895 | 1,127 | 56,486 | ||||||||||||||||||||||||||||||||||||||||||
Total |
$ | 62,812 | $ | 231,112 | $ | 8,953 | $ | 114,288 | $ | 71,765 | $ | 345,400 |
1 |
Geographic location is based on the address of the property mortgaged. |
2 |
Excludes loans classified as trading as the Bank intends to sell the loans immediately or in the near term, and loans designated at FVTPL for which no allowance is recorded. |
3 |
Default insurance is contractual coverage for the life of eligible facilities whereby the Bank’s exposure to real estate secured lending, all or in part, is protected against potential losses caused by borrower default. It is provided by either government-backed entities or other approved private mortgage insurers. |
4 |
The territories are included as follows: Yukon is included in British Columbia; Nunavut is included in Ontario; and the Northwest Territories is included in the Prairies region. |
As at |
||||||||||||||||||||||||||||||||||||
<=5 years |
>5 – 10 years |
>10 – 15 years |
>15 – 20 years |
>20 – 25 years |
>25 – 30 years |
>30 – 35 years |
>35 years |
Total |
||||||||||||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||||||||||||||||||
Canada |
0.8 |
% |
2.7 |
% |
5.6 |
% |
13.8 |
% |
29.7 |
% |
20.5 |
% |
1.8 |
% |
25.1 |
% |
100.0 |
% | ||||||||||||||||||
United States |
6.6 |
1.6 |
3.9 |
7.4 |
11.6 |
67.6 |
0.7 |
0.6 |
100.0 |
|||||||||||||||||||||||||||
Total |
1.8 |
% |
2.6 |
% |
5.3 |
% |
12.7 |
% |
26.5 |
% |
28.5 |
% |
1.7 |
% |
20.9 |
% |
100.0 |
% | ||||||||||||||||||
October 31, 2022 | ||||||||||||||||||||||||||||||||||||
Canada |
0.8 | % | 2.7 | % | 5.4 | % | 13.5 | % | 29.5 | % | 19.2 | % | 3.7 | % | 25.2 | % | 100.0 | % | ||||||||||||||||||
United States |
8.3 | 2.0 | 4.1 | 6.3 | 13.1 | 64.9 | 0.7 | 0.6 | 100.0 | |||||||||||||||||||||||||||
Total |
2.0 | % | 2.6 | % | 5.2 | % | 12.3 | % | 26.8 | % | 26.7 | % | 3.2 | % | 21.2 | % | 100.0 | % |
1 |
Excludes loans classified as trading as the Bank intends to sell the loans immediately or in the near term, and loans designated at FVTPL for which no allowance is recorded. |
2 |
Percentage based on outstanding balance. |
For the three months ended |
||||||||||||||||||||||||
Residential mortgages |
Home equity lines of credit 4,5 |
Total |
Residential mortgages |
Home equity lines of credit 4,5 |
Total |
|||||||||||||||||||
April 30, 2023 |
October 31, 2022 | |||||||||||||||||||||||
Canada |
||||||||||||||||||||||||
Atlantic provinces |
71 |
% |
68 |
% |
69 |
% |
69 | % | 68 | % | 69 | % | ||||||||||||
British Columbia 6 |
66 |
61 |
64 |
66 | 62 | 64 | ||||||||||||||||||
Ontario 6 |
66 |
61 |
64 |
67 | 62 | 64 | ||||||||||||||||||
Prairies 6 |
73 |
70 |
72 |
73 | 71 | 72 | ||||||||||||||||||
Québec |
70 |
69 |
69 |
69 | 70 | 70 | ||||||||||||||||||
Total Canada |
68 |
63 |
66 |
67 | 64 | 66 | ||||||||||||||||||
United States |
72 |
62 |
69 |
72 | 63 | 69 | ||||||||||||||||||
Total |
68 |
% |
63 |
% |
66 |
% |
68 | % | 64 | % | 66 | % |
1 |
Geographic location is based on the address of the property mortgaged. |
2 |
Excludes loans classified as trading as the Bank intends to sell the loans immediately or in the near term, and loans designated at FVTPL for which no allowance is recorded. |
3 |
Based on house price at origination. |
4 |
Home equity lines of credit (HELOCs) loan-to-value |
5 |
HELOC fixed rate advantage option is included in loan-to-value |
6 |
The territories are included as follows: Yukon is included in British Columbia; Nunavut is included in Ontario; and the Northwest Territories is included in the Prairies region. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 27 |
(millions of Canadian dollars) |
As at |
|||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and commitments 1 |
Derivatives, repos, and securities lending 2 |
Trading and investment portfolio 3 |
Total |
|||||||||||||||||||||||||||||||||||||||||||||||||
Corporate |
Sovereign |
Financial |
Total |
Corporate |
Sovereign |
Financial |
Total |
Corporate |
Sovereign |
Financial |
Total |
Exposure |
4 | |||||||||||||||||||||||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Region |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe |
$ |
7,408 |
$ |
8 |
$ |
4,604 |
$ |
12,020 |
$ |
3,648 |
$ |
2,301 |
$ |
6,128 |
$ |
12,077 |
$ |
737 |
$ |
25,926 |
$ |
1,415 |
$ |
28,078 |
$ |
52,175 |
||||||||||||||||||||||||||
United Kingdom |
8,962 |
34,200 |
2,209 |
45,371 |
2,459 |
630 |
13,848 |
16,937 |
469 |
973 |
339 |
1,781 |
64,089 |
|||||||||||||||||||||||||||||||||||||||
Asia |
95 |
21 |
2,373 |
2,489 |
194 |
827 |
2,363 |
3,384 |
87 |
8,035 |
627 |
8,749 |
14,622 |
|||||||||||||||||||||||||||||||||||||||
Other 5 |
229 |
21 |
989 |
1,239 |
254 |
727 |
2,987 |
3,968 |
174 |
766 |
3,145 |
4,085 |
9,292 |
|||||||||||||||||||||||||||||||||||||||
Total |
$ |
16,694 |
$ |
34,250 |
$ |
10,175 |
$ |
61,119 |
$ |
6,555 |
$ |
4,485 |
$ |
25,326 |
$ |
36,366 |
$ |
1,467 |
$ |
35,700 |
$ |
5,526 |
$ |
42,693 |
$ |
140,178 |
||||||||||||||||||||||||||
October 31, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||
Region |
||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe |
$ | 6,037 | $ | – | $ | 4,079 | $ | 10,116 | $ | 3,625 | $ | 2,205 | $ | 7,654 | $ | 13,484 | $ | 860 | $ | 26,899 | $ | 1,212 | $ | 28,971 | $ | 52,571 | ||||||||||||||||||||||||||
United Kingdom |
7,563 | 27,176 | 2,493 | 37,232 | 2,029 | 828 | 14,007 | 16,864 | 490 | 384 | 262 | 1,136 | 55,232 | |||||||||||||||||||||||||||||||||||||||
Asia |
55 | 17 | 2,480 | 2,552 | 671 | 682 | 3,052 | 4,405 | 120 | 11,055 | 695 | 11,870 | 18,827 | |||||||||||||||||||||||||||||||||||||||
Other 5 |
487 | 43 | 1,354 | 1,884 | 234 | 341 | 2,465 | 3,040 | 173 | 1,202 | 2,760 | 4,135 | 9,059 | |||||||||||||||||||||||||||||||||||||||
Total |
$ | 14,142 | $ | 27,236 | $ | 10,406 | $ | 51,784 | $ | 6,559 | $ | 4,056 | $ | 27,178 | $ | 37,793 | $ | 1,643 | $ | 39,540 | $ | 4,929 | $ | 46,112 | $ | 135,689 |
1 |
Exposures, including interest-bearing deposits with banks, are presented net of impairment charges where applicable. |
2 |
Exposures are calculated on a fair value basis and presented net of collateral. Derivatives are presented as net exposures where there is an International Swaps and Derivatives Association master netting agreement. |
3 |
Trading exposures are net of eligible short positions. |
4 |
In addition to the exposures identified above, the Bank also has $41 billion (October 31, 2022 – $43 billion) of exposure to supranational entities. |
5 |
Other regional exposure largely attributable to Australia. |
Minimum | Capital Conservation Buffer |
D-SIB / G-SIB Surcharge 1 |
Pillar 1 Regulatory Target 2 |
DSB | Pillar 1 & 2 Regulatory Target |
|||||||||||||||||||
CET1 |
4.5 | % | 2.5 | % | 1.0 | % | 8.0 | % | 3.0 | % | 11.0 | % | ||||||||||||
Tier 1 |
6.0 | 2.5 | 1.0 | 9.5 | 3.0 | 12.5 | ||||||||||||||||||
Total Capital |
8.0 | 2.5 | 1.0 | 11.5 | 3.0 | 14.5 | ||||||||||||||||||
Leverage |
3.0 | n/a | 0.5 | 3.5 | n/a | 3.5 | ||||||||||||||||||
TLAC |
18.0 | 2.5 | 1.0 | 21.5 | 3.0 | 24.5 | ||||||||||||||||||
TLAC Leverage |
6.75 | n/a | 0.50 | 7.25 | n/a | 7.25 |
1 |
The higher of the D-SIB and Global Systemically Important Bank (G-SIB) surcharge applies to risk weighted capital. The D-SIB surcharge is currently equivalent to the Bank’s 1% G-SIB additional common equity requirement for risk weighted capital. The G-SIB surcharge may increase above 1% if the Bank’s G-SIB score increases above certain thresholds to a maximum of 4.5%. OSFI’s Leverage Requirements Guideline includes a requirement for D-SIBs to hold a leverage ratio buffer set at 50% of a D-SIB’s higher loss absorbency risk-weighted requirements, effectively 0.50%. This buffer also applies to the TLAC Leverage ratio. |
2 |
The Bank’s countercyclical buffer requirement is 0% as of April 30, 2023. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 28 |
(millions of Canadian dollars, except as noted) |
As at |
|||||||||||
April 30 2023 |
October 31 2022 |
April 30 2022 |
||||||||||
Common Equity Tier 1 Capital |
||||||||||||
Common shares plus related contributed surplus |
$ |
25,912 |
$ | 24,449 | $ | 23,036 | ||||||
Retained earnings |
74,849 |
73,698 | 67,046 | |||||||||
Accumulated other comprehensive income |
4,108 |
1,988 | 2,791 | |||||||||
Common Equity Tier 1 Capital before regulatory adjustments |
104,869 |
100,135 | 92,873 | |||||||||
Common Equity Tier 1 Capital regulatory adjustments |
||||||||||||
Goodwill (net of related tax liability) |
(18,016 |
) |
(17,498 | ) | (16,607 | ) | ||||||
Intangibles (net of related tax liability) |
(2,496 |
) |
(2,100 | ) | (1,947 | ) | ||||||
Deferred tax assets excluding those arising from temporary differences |
(96 |
) |
(83 | ) | (101 | ) | ||||||
Cash flow hedge reserve |
3,678 |
5,783 | 2,310 | |||||||||
Shortfall of provisions to expected losses |
– |
– | – | |||||||||
Gains and losses due to changes in own credit risk on fair valued liabilities |
(294 |
) |
(502 | ) | (265 | ) | ||||||
Defined benefit pension fund net assets (net of related tax liability) |
(1,129 |
) |
(1,038 | ) | (1,236 | ) | ||||||
Investment in own shares |
(18 |
) |
(9 | ) | (10 | ) | ||||||
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible short positions (amount above 10% threshold) |
(2,135 |
) |
(1,428 | ) | (3,487 | ) | ||||||
Significant investments in the common stock of banking, financial, and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions (amount above 10% threshold) |
– |
– | – | |||||||||
Equity investments in funds subject to the fall-back approach |
(35 |
) |
– | – | ||||||||
Other deductions or regulatory adjustments to CET1 as determined by OSFI 1 |
– |
411 | 336 | |||||||||
Total regulatory adjustments to Common Equity Tier 1 Capital |
(20,541 |
) |
(16,464 | ) | (21,007 | ) | ||||||
Common Equity Tier 1 Capital |
84,328 |
83,671 | 71,866 | |||||||||
Additional Tier 1 Capital instruments |
||||||||||||
Directly issued qualifying Additional Tier 1 instruments plus stock surplus |
11,245 |
11,248 | 6,539 | |||||||||
Additional Tier 1 Capital instruments before regulatory adjustments |
11,245 |
11,248 | 6,539 | |||||||||
Additional Tier 1 Capital instruments regulatory adjustments |
||||||||||||
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible short positions (amount above 10% threshold) |
(112 |
) |
(124 | ) | (236 | ) | ||||||
Significant investments in the capital of banking, financial, and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions |
(350 |
) |
(350 | ) | (350 | ) | ||||||
Total regulatory adjustments to Additional Tier 1 Capital |
(462 |
) |
(474 | ) | (586 | ) | ||||||
Additional Tier 1 Capital |
10,783 |
10,774 | 5,953 | |||||||||
Tier 1 Capital |
95,111 |
94,445 | 77,819 | |||||||||
Tier 2 Capital instruments and provisions |
||||||||||||
Directly issued qualifying Tier 2 instruments plus related stock surplus |
11,166 |
11,090 | 11,051 | |||||||||
Collective allowances |
2,143 |
2,018 | 1,964 | |||||||||
Tier 2 Capital before regulatory adjustments |
13,309 |
13,108 | 13,015 | |||||||||
Tier 2 regulatory adjustments |
||||||||||||
Investments in own Tier 2 instruments |
– |
– | – | |||||||||
Non-significant investments in the capital of banking, financial, and insurance entities, net of eligible short positions (amount above 10% threshold)2 |
(232 |
) |
(161 | ) | (303 | ) | ||||||
Non-significant investments in the other TLAC-eligible instruments issued by G-SIBs and Canadian D-SIBs, where the institution does not own more than 10% of the issued common share capital of the entity: amount previously designated for the 5% threshold but that no longer meets the conditions |
(68 |
) |
(57 | ) | (100 | ) | ||||||
Significant investments in the capital of banking, financial, and insurance entities that are outside the scope of regulatory consolidation, net of eligible short positions |
(160 |
) |
(160 | ) | (160 | ) | ||||||
Total regulatory adjustments to Tier 2 Capital |
(460 |
) |
(378 | ) | (563 | ) | ||||||
Tier 2 Capital |
12,849 |
12,730 | 12,452 | |||||||||
Total Capital |
$ |
107,960 |
$ | 107,175 | $ | 90,271 | ||||||
Risk-weighted assets |
$ |
549,398 |
$ | 517,048 | $ | 488,991 | ||||||
Capital Ratios and Multiples |
||||||||||||
Common Equity Tier 1 Capital (as percentage of risk-weighted assets) |
15.3 |
% |
16.2 | % | 14.7 | % | ||||||
Tier 1 Capital (as percentage of risk-weighted assets) |
17.3 |
18.3 | 15.9 | |||||||||
Total Capital (as percentage of risk-weighted assets) |
19.7 |
20.7 | 18.5 | |||||||||
Leverage ratio 3 |
4.6 |
4.9 | 4.3 |
1 |
Represents ECL transitional arrangements provided by OSFI. Refer to the “OSFI’s Capital Requirements under Basel III” within the “Capital Position” section of the Bank’s 2022 Annual Report. Effective Q1 2023, it is no longer applicable. |
2 |
Includes other TLAC-eligible instruments issued by G-SIBs and Canadian D-SIBs that are outside the scope of regulatory consolidation, where the institution does not own more than 10% of the issued common share capital of the entity. |
3 |
The Leverage ratio is calculated as Tier 1 Capital divided by leverage exposure, as defined in the “Regulatory Capital” section of this document. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 29 |
(millions of shares/units and millions of Canadian dollars, except as noted) | As at |
|||||||||||||||
April 30, 2023 |
October 31, 2022 | |||||||||||||||
Number of shares/units |
Amount |
Number of shares/units |
Amount | |||||||||||||
Common shares outstanding |
1,839.6 |
$ |
25,852 |
1,821.7 | $ | 24,363 | ||||||||||
Treasury – common shares |
(1.1 |
) |
(99 |
) |
(1.0 | ) | (91 | ) | ||||||||
Total common shares |
1,838.5 |
$ |
25,753 |
1,820.7 | $ | 24,272 | ||||||||||
Stock options |
||||||||||||||||
Vested |
5.3 |
4.4 | ||||||||||||||
Non-vested |
8.9 |
8.4 | ||||||||||||||
Preferred shares – Class A |
||||||||||||||||
Series 1 |
20.0 |
$ |
500 |
20.0 | $ | 500 | ||||||||||
Series 3 |
20.0 |
500 |
20.0 | 500 | ||||||||||||
Series 5 |
20.0 |
500 |
20.0 | 500 | ||||||||||||
Series 7 |
14.0 |
350 |
14.0 | 350 | ||||||||||||
Series 9 |
8.0 |
200 |
8.0 | 200 | ||||||||||||
Series 16 |
14.0 |
350 |
14.0 | 350 | ||||||||||||
Series 18 2 |
14.0 |
350 |
14.0 | 350 | ||||||||||||
Series 20 |
16.0 |
400 |
16.0 | 400 | ||||||||||||
Series 22 |
14.0 |
350 |
14.0 | 350 | ||||||||||||
Series 24 |
18.0 |
450 |
18.0 | 450 | ||||||||||||
Series 27 |
0.8 |
850 |
0.8 | 850 | ||||||||||||
Series 28 |
0.8 |
800 |
0.8 | 800 | ||||||||||||
159.6 |
$ |
5,600 |
159.6 | $ | 5,600 | |||||||||||
Other equity instruments |
||||||||||||||||
Limited Recourse Capital Notes Series 1 3 |
1.8 |
1,750 |
1.8 | 1,750 | ||||||||||||
Limited Recourse Capital Notes Series 2 3 |
1.5 |
1,500 |
1.5 | 1,500 | ||||||||||||
Limited Recourse Capital Notes Series 3 3,4 |
1.7 |
2,403 |
1.7 | 2,403 | ||||||||||||
164.6 |
$ |
11,253 |
164.6 | $ | 11,253 | |||||||||||
Treasury – preferred shares and other equity instruments |
(0.1 |
) |
(10 |
) |
(0.1 | ) | (7 | ) | ||||||||
Total preferred shares and other equity instruments |
164.5 |
$ |
11,243 |
164.5 | $ | 11,246 |
1 |
For further details, including the conversion and exchange features, and distributions, refer to Note 21 of the Bank’s 2022 Consolidated Financial Statements. |
2 |
On April 18, 2023, the Bank announced that none of its 14 million Non-Cumulative 5-Year Rate Reset Preferred Shares non-viability contingent capital (NVCC), Series 18 (“Series 18 Shares”) would be converted on April 30, 2023 into Non-Cumulative Floating Rate Preferred Shares NVCC, Series 19. As previously announced on March 31, 2023, the dividend rate for the Series 18 Shares for the 5-year period from and including April 30, 2023 to but excluding April 30, 2028 will be 5.747%. |
3 |
For Limited Recourse Capital Notes (LRCNs), the number of shares/units represents the number of notes issued. |
4 |
For LRCNs – Series 3, the amount represents the Canadian dollar equivalent of the U.S. dollar notional amount. Refer to the “Preferred Shares and Other Equity Instruments – Significant Terms and Conditions” table in Note 21 of the Bank’s 2022 Consolidated Financial Statements for further details. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 30 |
(millions of Canadian dollars) |
As at |
|||||||||||||||||||||||
April 30, 2023 |
October 31, 2022 |
|||||||||||||||||||||||
Standardized |
IRB |
Total |
Standardized |
IRB |
Total |
|||||||||||||||||||
Retail |
||||||||||||||||||||||||
Residential secured |
$ |
4,942 |
$ |
488,005 |
$ |
492,947 |
$ |
4,989 |
$ |
477,898 |
$ |
482,887 |
||||||||||||
Qualifying revolving retail |
803 |
167,804 |
168,607 |
– |
166,722 |
166,722 |
||||||||||||||||||
Other retail |
3,222 |
93,185 |
96,407 |
3,232 |
92,925 |
96,157 |
||||||||||||||||||
Total retail |
8,967 |
748,994 |
757,961 |
8,221 |
737,545 |
745,766 |
||||||||||||||||||
Non-retail |
||||||||||||||||||||||||
Corporate |
3,460 |
607,770 |
611,230 |
2,205 |
695,746 |
697,951 |
||||||||||||||||||
Sovereign |
249 |
579,199 |
579,448 |
1 |
507,533 |
507,534 |
||||||||||||||||||
Bank |
4,977 |
139,551 |
144,528 |
646 |
150,333 |
150,979 |
||||||||||||||||||
Total non-retail |
8,686 |
1,326,520 |
1,335,206 |
2,852 |
1,353,612 |
1,356,464 |
||||||||||||||||||
Gross credit risk exposures |
$ |
17,653 |
$ |
2,075,514 |
$ |
2,093,167 |
$ |
11,073 |
$ |
2,091,157 |
$ |
2,102,230 |
1 |
Gross credit risk exposures represent EAD and are before the effects of CRM. This table excludes securitization, equity, and certain other credit RWA. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 31 |
(millions of Canadian dollars) |
As at |
|||||||||||||||||||||||||||||||||||
April 30, 2023 |
October 31, 2022 |
|||||||||||||||||||||||||||||||||||
Balance sheet |
Trading market risk |
Non-trading market risk |
Other |
Balance sheet |
Trading market risk |
Non-trading market risk |
Other |
Non-trading market risk – primary risk sensitivity |
||||||||||||||||||||||||||||
Assets subject to market risk |
||||||||||||||||||||||||||||||||||||
Interest-bearing deposits with banks |
$ |
103,324 |
$ |
254 |
$ |
103,070 |
$ |
– |
$ |
137,294 |
$ |
422 |
$ |
136,872 |
$ |
– |
Interest rate |
|||||||||||||||||||
Trading loans, securities, and other |
157,539 |
153,828 |
3,711 |
– |
143,726 |
142,294 |
1,432 |
– |
Interest rate |
|||||||||||||||||||||||||||
Non-trading financial assets at fair value through profit or loss |
8,546 |
– |
8,546 |
– |
10,946 |
– |
10,946 |
– |
Equity, foreign exchange, interest rate |
|||||||||||||||||||||||||||
Derivatives |
75,212 |
69,064 |
6,148 |
– |
103,873 |
98,305 |
5,568 |
– |
Equity, foreign exchange, interest rate |
|||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss |
5,237 |
– |
5,237 |
– |
5,039 |
– |
5,039 |
– |
Interest rate |
|||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
74,009 |
– |
74,009 |
– |
69,675 |
– |
69,675 |
– |
Equity, foreign exchange, interest rate |
|||||||||||||||||||||||||||
Debt securities at amortized cost, net of allowance for credit losses |
330,891 |
– |
330,891 |
– |
342,774 |
– |
342,774 |
– |
Foreign exchange, interest rate |
|||||||||||||||||||||||||||
Securities purchased under reverse repurchase agreements |
198,076 |
8,051 |
190,025 |
– |
160,167 |
7,450 |
152,717 |
– |
Interest rate |
|||||||||||||||||||||||||||
Loans, net of allowance for loan losses |
849,618 |
– |
849,618 |
– |
831,043 |
– |
831,043 |
– |
Interest rate |
|||||||||||||||||||||||||||
Customers’ liability under acceptances |
19,558 |
– |
19,558 |
– |
19,733 |
– |
19,733 |
– |
Interest rate |
|||||||||||||||||||||||||||
Investment in Schwab |
9,119 |
– |
9,119 |
– |
8,088 |
– |
8,088 |
– |
Equity |
|||||||||||||||||||||||||||
Other assets 1 |
3,512 |
– |
3,512 |
– |
3,414 |
– |
3,414 |
– |
Interest rate |
|||||||||||||||||||||||||||
Assets not exposed to market risk |
91,811 |
– |
– |
91,811 |
81,756 |
– |
– |
81,756 |
||||||||||||||||||||||||||||
Total Assets |
$ |
1,926,452 |
$ |
231,197 |
$ |
1,603,444 |
$ |
91,811 |
$ |
1,917,528 |
$ |
248,471 |
$ |
1,587,301 |
$ |
81,756 |
||||||||||||||||||||
Liabilities subject to market risk |
||||||||||||||||||||||||||||||||||||
Trading deposits |
$ |
25,077 |
$ |
24,448 |
$ |
629 |
$ |
– |
$ |
23,805 |
$ |
22,962 |
$ |
843 |
$ |
– |
Equity, interest rate |
|||||||||||||||||||
Derivatives |
63,706 |
61,449 |
2,257 |
– |
91,133 |
86,727 |
4,406 |
– |
Equity, foreign exchange, interest rate |
|||||||||||||||||||||||||||
Securitization liabilities at fair value |
12,832 |
12,832 |
– |
– |
12,612 |
12,612 |
– |
– |
Interest rate |
|||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
201,061 |
4 |
201,057 |
– |
162,786 |
3 |
162,783 |
– |
Interest rate |
|||||||||||||||||||||||||||
Deposits |
1,189,370 |
– |
1,189,370 |
– |
1,229,970 |
– |
1,229,970 |
– |
Interest rate, foreign exchange |
|||||||||||||||||||||||||||
Acceptances |
19,558 |
– |
19,558 |
– |
19,733 |
– |
19,733 |
– |
Interest rate |
|||||||||||||||||||||||||||
Obligations related to securities sold short |
48,797 |
46,953 |
1,844 |
– |
45,505 |
44,427 |
1,078 |
– |
Interest rate |
|||||||||||||||||||||||||||
Obligations related to securities sold under repurchase agreements |
146,959 |
4,348 |
142,611 |
– |
128,024 |
9,509 |
118,515 |
– |
Interest rate |
|||||||||||||||||||||||||||
Securitization liabilities at amortized cost |
14,756 |
– |
14,756 |
– |
15,072 |
– |
15,072 |
– |
Interest rate |
|||||||||||||||||||||||||||
Subordinated notes and debentures |
11,366 |
– |
11,366 |
– |
11,290 |
– |
11,290 |
– |
Interest rate |
|||||||||||||||||||||||||||
Other liabilities 1 |
26,602 |
– |
26,602 |
– |
23,291 |
– |
23,291 |
– |
Equity, interest rate |
|||||||||||||||||||||||||||
Liabilities and Equity not exposed to market risk |
166,368 |
– |
– |
166,368 |
154,307 |
– |
– |
154,307 |
||||||||||||||||||||||||||||
Total Liabilities and Equity |
$ |
1,926,452 |
$ |
150,034 |
$ |
1,610,050 |
$ |
166,368 |
$ |
1,917,528 |
$ |
176,240 |
$ |
1,586,981 |
$ |
154,307 |
1 |
Relates to retirement benefits, insurance, and structured entity liabilities. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 32 |
• | VaR uses historical data to estimate future events, which limits its forecasting abilities; |
• | it does not provide information on losses beyond the selected confidence level; and |
• | it assumes that all positions can be liquidated during the holding period used for VaR calculation. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 33 |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||||||||||||||||||
April 30 2023 |
January 31 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
||||||||||||||||||||||||||||
As at |
Average |
High |
Low |
Average | Average | Average |
Average | |||||||||||||||||||||||||
Interest rate risk |
$ |
$ |
$ |
$ |
$ | $ | $ |
$ | ||||||||||||||||||||||||
Credit spread risk |
||||||||||||||||||||||||||||||||
Equity risk |
||||||||||||||||||||||||||||||||
Foreign exchange risk |
||||||||||||||||||||||||||||||||
Commodity risk |
||||||||||||||||||||||||||||||||
Idiosyncratic debt specific risk |
||||||||||||||||||||||||||||||||
Diversification effect 1 |
( |
) |
( |
) |
n/m |
2 |
n/m |
( |
) | ( |
) | ( |
) |
( |
) | |||||||||||||||||
Total Value-at-Risk (one-day) |
||||||||||||||||||||||||||||||||
Stressed Value-at-Risk (one-day) |
||||||||||||||||||||||||||||||||
Incremental Risk Capital Charge (one-year) |
$ |
$ |
$ |
$ |
$ | |
$ | |
$ |
$ | |
1 |
The aggregate VaR is less than the sum of the VaR of the different risk types due to risk offsets resulting from portfolio diversification. |
2 |
Not meaningful. It is not meaningful to compute a diversification effect because the high and low may occur on different days for different risk types. |
(millions of Canadian dollars) | As at |
|||||||||||||||||||||||||||||||||||||||
April 30, 2023 |
January 31, 2023 | October 31, 2022 | ||||||||||||||||||||||||||||||||||||||
EVE Sensitivity |
NII Sensitivity 1,2 |
EVE Sensitivity |
NII Sensitivity 1,2 |
EVE Sensitivity |
NII Sensitivity 1 |
|||||||||||||||||||||||||||||||||||
Canada |
U.S. |
Total |
Canada |
U.S. |
Total |
Total | Total | Total | Total | |||||||||||||||||||||||||||||||
Before-tax impact of |
||||||||||||||||||||||||||||||||||||||||
100 bps increase in rates |
$ |
( |
) |
$ |
( |
) |
$ |
( |
) |
$ |
$ |
$ |
$ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||||||||
100 bps decrease in rates |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) |
1 |
Represents the twelve-month net interest income (NII) exposure to an immediate and sustained shock in rates. |
2 |
Results are presented inclusive of the interest rate swaps de-designated from hedge accounting relationships to mitigate the impacts of interest rate volatility to closing capital of the First Horizon acquisition. Since these swaps were pre-existing hedges which economically hedge the Bank’s non-trading market risk, their inclusion had no impact on the quarter-over-quarter results. This strategy was discontinued following the announcement on May 4, 2023 by the bank and First Horizon that they had entered into a mutual agreement to terminate the previously announced merger agreement. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 34 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 35 |
(millions of Canadian dollars, except as noted) | As at |
|||||||||||||||||||||||
Bank-owned liquid assets |
Securities received as collateral from securities financing and derivative transactions |
Total liquid assets |
% of total |
Encumbered liquid assets |
Unencumbered liquid assets |
|||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||||||
Cash and central bank reserves |
$ |
$ |
– |
$ |
% |
$ |
$ |
|||||||||||||||||
Canadian government obligations |
||||||||||||||||||||||||
National Housing Act Mortgage-Backed Securities (NHA MBS) |
||||||||||||||||||||||||
Obligations of provincial governments, public sector entities and multilateral development banks 3 |
||||||||||||||||||||||||
Corporate issuer obligations |
||||||||||||||||||||||||
Equities |
||||||||||||||||||||||||
Total Canadian dollar-denominated |
||||||||||||||||||||||||
Cash and central bank reserves |
– |
|||||||||||||||||||||||
U.S. government obligations |
||||||||||||||||||||||||
U.S. federal agency obligations, including U.S. federal agency mortgage-backed obligations |
||||||||||||||||||||||||
Obligations of other sovereigns, public sector entities and multilateral development banks 3 |
||||||||||||||||||||||||
Corporate issuer obligations |
||||||||||||||||||||||||
Equities |
||||||||||||||||||||||||
Total non-Canadian dollar-denominated |
||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
|||||||||||||||||||
October 31, 2022 | ||||||||||||||||||||||||
Cash and central bank reserves |
$ | $ | – | $ | % | $ | $ | |||||||||||||||||
Canadian government obligations |
||||||||||||||||||||||||
NHA MBS |
||||||||||||||||||||||||
Obligations of provincial governments, public sector entities and multilateral development banks 3 |
||||||||||||||||||||||||
Corporate issuer obligations |
||||||||||||||||||||||||
Equities |
||||||||||||||||||||||||
Total Canadian dollar-denominated |
||||||||||||||||||||||||
Cash and central bank reserves |
– | – | ||||||||||||||||||||||
U.S. government obligations |
||||||||||||||||||||||||
U.S. federal agency obligations, including U.S. federal agency mortgage-backed obligations |
||||||||||||||||||||||||
Obligations of other sovereigns, public sector entities and multilateral development banks 3 |
||||||||||||||||||||||||
Corporate issuer obligations |
||||||||||||||||||||||||
Equities |
||||||||||||||||||||||||
Total non-Canadian dollar-denominated |
||||||||||||||||||||||||
Total |
$ | $ | $ | $ | $ |
1 |
Liquid assets include collateral received that can be re-hypothecated or otherwise redeployed. |
2 |
Positions stated include gross asset values pertaining to securities financing transactions. |
3 |
Includes debt obligations issued or guaranteed by these entities. |
(millions of Canadian dollars) | As at |
|||||||
April 30 2023 |
October 31 2022 |
| ||||||
The Toronto-Dominion Bank (Parent) |
$ |
$ | ||||||
Bank subsidiaries |
||||||||
Foreign branches |
||||||||
Total |
$ |
$ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 36 |
(millions of Canadian dollars, except as noted) | Average for the three months ended |
|||||||||||||||||||||||
Bank-owned liquid assets |
Securities received as collateral from securities financing and derivative transactions |
Total liquid assets |
% of Total |
Encumbered liquid assets |
Unencumbered liquid assets |
|||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||||||
Cash and central bank reserves |
$ |
41,271 |
$ |
– |
$ |
41,271 |
5 |
% |
$ |
469 |
$ |
40,802 |
||||||||||||
Canadian government obligations |
15,561 |
85,994 |
101,555 |
12 |
59,806 |
41,749 |
||||||||||||||||||
NHA MBS |
38,102 |
2 |
38,104 |
4 |
1,068 |
37,036 |
||||||||||||||||||
Obligations of provincial governments, public sector entities and multilateral development banks 3 |
39,239 |
24,235 |
63,474 |
7 |
34,040 |
29,434 |
||||||||||||||||||
Corporate issuer obligations |
14,106 |
4,905 |
19,011 |
2 |
5,072 |
13,939 |
||||||||||||||||||
Equities |
14,204 |
5,476 |
19,680 |
2 |
13,013 |
6,667 |
||||||||||||||||||
Total Canadian dollar-denominated |
162,483 |
120,612 |
283,095 |
32 |
113,468 |
169,627 |
||||||||||||||||||
Cash and central bank reserves |
77,570 |
– |
77,570 |
9 |
271 |
77,299 |
||||||||||||||||||
U.S. government obligations |
86,867 |
57,492 |
144,359 |
16 |
51,309 |
93,050 |
||||||||||||||||||
U.S. federal agency obligations, including U.S. federal agency mortgage-backed obligations |
87,793 |
8,104 |
95,897 |
11 |
21,487 |
74,410 |
||||||||||||||||||
Obligations of other sovereigns, public sector entities and multilateral development banks 3 |
65,289 |
53,102 |
118,391 |
13 |
51,207 |
67,184 |
||||||||||||||||||
Corporate issuer obligations |
87,327 |
6,757 |
94,084 |
11 |
12,743 |
81,341 |
||||||||||||||||||
Equities |
39,008 |
35,006 |
74,014 |
8 |
41,762 |
32,252 |
||||||||||||||||||
Total non-Canadian dollar-denominated |
443,854 |
160,461 |
604,315 |
68 |
178,779 |
425,536 |
||||||||||||||||||
Total |
$ |
606,337 |
$ |
281,073 |
$ |
887,410 |
100 |
% |
$ |
292,247 |
$ |
595,163 |
||||||||||||
January 31, 2023 | ||||||||||||||||||||||||
Cash and central bank reserves |
$ | 55,143 | $ | – | $ | 55,143 | 6 | % | $ | 595 | $ | 54,548 | ||||||||||||
Canadian government obligations |
16,444 | 86,332 | 102,776 | 11 | 71,107 | 31,669 | ||||||||||||||||||
NHA MBS |
31,881 | 14 | 31,895 | 3 | 1,142 | 30,753 | ||||||||||||||||||
Obligations of provincial governments, public sector entities and multilateral development banks 3 |
38,692 | 24,379 | 63,071 | 7 | 33,783 | 29,288 | ||||||||||||||||||
Corporate issuer obligations |
10,649 | 5,518 | 16,167 | 2 | 5,027 | 11,140 | ||||||||||||||||||
Equities |
13,690 | 3,492 | 17,182 | 2 | 11,810 | 5,372 | ||||||||||||||||||
Total Canadian dollar-denominated |
166,499 | 119,735 | 286,234 | 31 | 123,464 | 162,770 | ||||||||||||||||||
Cash and central bank reserves |
89,443 | – | 89,443 | 10 | 125 | 89,318 | ||||||||||||||||||
U.S. government obligations |
88,214 | 56,104 | 144,318 | 16 | 52,703 | 91,615 | ||||||||||||||||||
U.S. federal agency obligations, including U.S. federal agency mortgage-backed obligations |
91,320 | 7,105 | 98,425 | 11 | 20,958 | 77,467 | ||||||||||||||||||
Obligations of other sovereigns, public sector entities and multilateral development banks 3 |
66,898 | 56,432 | 123,330 | 13 | 53,836 | 69,494 | ||||||||||||||||||
Corporate issuer obligations |
97,839 | 5,855 | 103,694 | 11 | 11,831 | 91,863 | ||||||||||||||||||
Equities |
37,059 | 31,917 | 68,976 | 8 | 39,344 | 29,632 | ||||||||||||||||||
Total non-Canadian dollar-denominated |
470,773 | 157,413 | 628,186 | 69 | 178,797 | 449,389 | ||||||||||||||||||
Total |
$ | 637,272 | $ | 277,148 | $ | 914,420 | 100 | % | $ | 302,261 | $ | 612,159 |
1 |
Liquid assets include collateral received that can be re-hypothecated or otherwise redeployed. |
2 |
Positions stated include gross asset values pertaining to securities financing transactions. |
3 |
Includes debt obligations issued or guaranteed by these entities. |
(millions of Canadian dollars) | Average for the three months ended |
|||||||
April 30 2023 |
January 31 2023 |
|||||||
The Toronto-Dominion Bank (Parent) |
$ |
230,309 |
$ | 220,329 | ||||
Bank subsidiaries |
318,662 |
327,946 | ||||||
Foreign branches |
46,192 |
63,884 | ||||||
Total |
$ |
595,163 |
$ | 612,159 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 37 |
(millions of Canadian dollars) | As at |
|||||||||||||||||||||||||||
Total Assets |
Encumbered 1 |
Unencumbered |
||||||||||||||||||||||||||
Bank-owned assets |
Securities received as collateral from securities financing and derivative transactions 2 |
Total Assets |
Pledged as Collateral 3 |
Other 4 |
Available as Collateral 5 |
Other 6 |
||||||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||||||||||
Cash and due from banks |
$ |
6,874 |
$ |
– |
$ |
6,874 |
$ |
– |
$ |
– |
$ |
– |
$ |
6,874 |
||||||||||||||
Interest-bearing deposits with banks |
103,324 |
– |
103,324 |
6,701 |
130 |
94,117 |
2,376 |
|||||||||||||||||||||
Securities, trading loans, and other 7 |
576,222 |
400,052 |
976,274 |
369,533 |
12,894 |
560,195 |
33,652 |
|||||||||||||||||||||
Derivatives |
75,212 |
– |
75,212 |
– |
– |
– |
75,212 |
|||||||||||||||||||||
Securities purchased under reverse repurchase agreements 8 |
198,076 |
(198,076 |
) |
– |
– |
– |
– |
– |
||||||||||||||||||||
Loans, net of allowance for loan losses 9 |
849,618 |
(12,796 |
) |
836,822 |
80,205 |
55,388 |
24,302 |
676,927 |
||||||||||||||||||||
Customers’ liabilities under acceptances |
19,558 |
– |
19,558 |
– |
– |
– |
19,558 |
|||||||||||||||||||||
Other assets 10 |
97,568 |
– |
97,568 |
735 |
– |
– |
96,833 |
|||||||||||||||||||||
Total assets |
$ |
1,926,452 |
$ |
189,180 |
$ |
2,115,632 |
$ |
457,174 |
$ |
68,412 |
$ |
678,614 |
$ |
911,432 |
||||||||||||||
October 31, 2022 | ||||||||||||||||||||||||||||
Total assets |
$ | 1,917,528 | $ | 192,081 | $ | 2,109,609 | $ | 423,346 | $ | 64,864 | $ | 710,237 | $ | 911,162 |
1 |
Asset encumbrance has been analyzed on an individual asset basis. Where a particular asset has been encumbered and TD has holdings of the asset both on-balance sheet and off-balance sheet, for the purpose of this disclosure, the on- and off-balance sheet holdings are encumbered in alignment with the business practice. |
2 |
Assets received as collateral through off-balance sheet transactions such as reverse repurchase agreements, securities borrowing, margin loans, and other client activity. |
3 |
Represents assets that have been posted externally to support the Bank’s day-to-day |
4 |
Assets supporting TD’s long-term funding activities, assets pledged against securitization liabilities, and assets held by consolidated securitization vehicles or in pools for covered bond issuance. |
5 |
Assets that are considered readily available in their current legal form to generate funding or support collateral needs. This category includes reported FHLB assets that remain unutilized and DSAC that are available for collateral purposes however not regularly utilized in practice. |
6 |
Assets that cannot be used to support funding or collateral requirements in their current form. This category includes those assets that are potentially eligible as funding program collateral or for pledging to central banks (for example, Canada Mortgage and Housing Corporation insured mortgages that can be securitized into NHA MBS). |
7 |
Includes trading loans, securities, non-trading financial assets at FVTPL and other financial assets designated at FVTPL, financial assets at FVOCI, and DSAC. |
8 |
Assets reported in the “Bank-owned assets” column represent the value of the loans extended and not the value of the collateral received. The loan value from the reverse repurchase transactions is deducted from the “Securities received as collateral from securities financing and derivative transactions” column to avoid double-counting with the on-balance sheet assets. |
9 |
The loan value from the margin loans/client activity is deducted from the “Securities received as collateral from securities financing and derivative transactions” column to avoid double-counting with the on-balance sheet assets. |
10 |
Other assets include investment in Schwab, goodwill, other intangibles, land, buildings, equipment, and other depreciable assets, deferred tax assets, amounts receivable from brokers, dealers, and clients, and other assets on the balance sheet not reported in the above categories. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 38 |
As at |
||||||||||||||||
April 30, 2023 |
||||||||||||||||
Moody’s |
S&P |
Fitch |
DBRS |
|||||||||||||
Deposits/Counterparty 2 |
Aa1 |
AA- |
AA |
AA (high) |
||||||||||||
Legacy Senior Debt 3 |
Aa2 |
AA- |
AA |
AA (high) |
||||||||||||
Senior Debt 4 |
A1 |
A |
AA- |
AA |
||||||||||||
Covered Bonds |
Aaa |
– |
– |
AAA |
||||||||||||
Subordinated Debt |
A2 |
A |
A |
AA (low) |
||||||||||||
Subordinated Debt – NVCC |
A2 (hyb) |
A- |
A |
A |
||||||||||||
Preferred Shares – NVCC |
Baa1 (hyb) |
BBB |
BBB+ |
Pfd-2 (high) |
||||||||||||
Limited Recourse Capital Notes – NVCC |
Baa1 (hyb) |
BBB |
BBB+ |
A (low) |
||||||||||||
Short-Term Debt (Deposits) |
P-1 |
A-1+ |
F1+ |
R-1 (high) |
||||||||||||
Outlook |
Stable |
Stable |
Stable |
Stable |
1 |
The above ratings are for The Toronto-Dominion Bank legal entity. Subsidiaries’ ratings are available on the Bank’s website at http://www.td.com/investor/credit.jsp. Credit ratings are not recommendations to purchase, sell, or hold a financial obligation in as much as they do not comment on market price or suitability for a particular investor. Ratings are subject to revision or withdrawal at any time by the rating organization. |
2 |
Represents Moody’s Long-Term Deposits Ratings and Counterparty Risk Rating, S&P’s Issuer Credit Rating, Fitch’s Long-Term Deposits Rating and DBRS’ Long-Term Issuer Rating. |
3 |
Includes (a) Senior debt issued prior to September 23, 2018; and (b) Senior debt issued on or after September 23, 2018 which is excluded from the bank recapitalization “bail-in” regime. |
4 |
Subject to conversion under the bank recapitalization “bail-in” regime. |
(millions of Canadian dollars) | Average for the three months ended |
|||||||
April 30 2023 |
January 31 2023 |
|||||||
One-notch downgrade |
$ |
134 |
$ | 73 | ||||
Two-notch downgrade |
205 |
126 | ||||||
Three-notch downgrade |
906 |
894 |
1 |
The above collateral requirements are based on each OTC trading counterparty’s Credit Support Annex and the Bank’s credit rating across applicable rating agencies. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 39 |
(millions of Canadian dollars, except as noted) | Average for the three months ended |
|||||||
April 30, 2023 |
||||||||
Total unweighted value (average) 2 |
Total weighted value (average) 3 |
|||||||
High-quality liquid assets |
||||||||
Total high-quality liquid assets |
$ |
n/a |
4 |
$ |
347,104 |
|||
Cash outflows |
||||||||
Retail deposits and deposits from small business customers, of which: |
$ |
503,958 |
33,467 |
|||||
Stable deposits 5 |
251,258 |
7,538 |
||||||
Less stable deposits |
252,700 |
25,929 |
||||||
Unsecured wholesale funding, of which: |
346,565 |
171,016 |
||||||
Operational deposits (all counterparties) and deposits in networks of cooperative banks 6 |
135,291 |
32,099 |
||||||
Non-operational deposits (all counterparties) |
171,347 |
98,990 |
||||||
Unsecured debt |
39,927 |
39,927 |
||||||
Secured wholesale funding |
n/a |
31,732 |
||||||
Additional requirements, of which: |
315,311 |
93,050 |
||||||
Outflows related to derivative exposures and other collateral requirements |
49,107 |
34,903 |
||||||
Outflows related to loss of funding on debt products |
12,422 |
12,422 |
||||||
Credit and liquidity facilities |
253,782 |
45,725 |
||||||
Other contractual funding obligations |
19,931 |
12,240 |
||||||
Other contingent funding obligations 7 |
762,306 |
11,691 |
||||||
Total cash outflows |
$ |
n/a |
$ |
353,196 |
||||
Cash inflows |
||||||||
Secured lending |
$ |
218,646 |
$ |
33,186 |
||||
Inflows from fully performing exposures |
21,306 |
8,736 |
||||||
Other cash inflows |
69,559 |
69,559 |
||||||
Total cash inflows |
$ |
309,511 |
$ |
111,481 |
||||
Average for the three months ended |
||||||||
April 30, 2023 |
January 31, 2023 | |||||||
Total adjusted value |
Total adjusted value |
|||||||
Total high-quality liquid assets 8 |
$ |
347,104 |
$ | 355,387 | ||||
Total net cash outflows 9 |
241,715 |
251,604 | ||||||
Liquidity coverage ratio |
144 |
% |
141 | % |
1 |
The LCR for the quarter ended April 30, 2023 is calculated as an average of the 61 daily data points in the quarter. |
2 |
Unweighted inflow and outflow values are outstanding balances maturing or callable within 30 days. |
3 |
Weighted values are calculated after the application of respective HQLA haircuts or inflow and outflow rates, as prescribed by the OSFI LAR guideline. |
4 |
Not applicable as per the LCR common disclosure template. |
5 |
As defined by the OSFI LAR guideline, stable deposits from retail and small- and medium-sized enterprise (SME) customers are deposits that are insured and are either held in transactional accounts or the depositors have an established relationship with the Bank that makes deposit withdrawal highly unlikely. |
6 |
Operational deposits from non-SME business customers are deposits kept with the Bank in order to facilitate their access and ability to conduct payment and settlement activities. These activities include clearing, custody, or cash management services. |
7 |
Includes uncommitted credit and liquidity facilities, stable value money market mutual funds, outstanding debt securities with remaining maturity greater than 30 days, and other contractual cash outflows. With respect to outstanding debt securities with remaining maturity greater than 30 days, TD has no contractual obligation to buy back these outstanding TD debt securities, and as a result, a 0% outflow rate is applied under the OSFI LAR guideline. |
8 |
Total HQLA includes both asset haircuts and applicable caps, as prescribed by the OSFI LAR guideline (HQLA assets after haircuts are capped at 40% for Level 2 and 15% for Level 2B). |
9 |
Total Net Cash Outflows include both inflow and outflow rates and applicable caps, as prescribed by the OSFI LAR guideline (inflows are capped at 75% of outflows). |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 40 |
(millions of Canadian dollars, except as noted) |
As at |
|||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||
Unweighted value by residential maturity |
||||||||||||||||||||
No maturity 1 |
Less than 6 months |
6 months to less than 1 year |
More than 1 year |
Weighted value 2 |
||||||||||||||||
Available Stable Funding Item |
||||||||||||||||||||
Capital |
$ |
113,185 |
$ |
n/a |
$ |
n/a |
$ |
10,897 |
$ |
124,082 |
||||||||||
Regulatory capital |
113,185 |
n/a |
n/a |
10,897 |
124,082 |
|||||||||||||||
Other capital instruments |
n/a |
n/a |
n/a |
– |
– |
|||||||||||||||
Retail deposits and deposits from small business customers: |
469,948 |
47,376 |
28,397 |
24,778 |
528,951 |
|||||||||||||||
Stable deposits 3 |
256,007 |
9,139 |
6,889 |
9,415 |
267,849 |
|||||||||||||||
Less stable deposits |
213,941 |
38,237 |
21,508 |
15,363 |
261,102 |
|||||||||||||||
Wholesale funding: |
230,107 |
357,080 |
94,926 |
260,209 |
469,656 |
|||||||||||||||
Operational deposits 4 |
98,199 |
3,309 |
4 |
– |
50,756 |
|||||||||||||||
Other wholesale funding |
131,908 |
353,771 |
94,922 |
260,209 |
418,900 |
|||||||||||||||
Liabilities with matching interdependent assets 5 |
– |
3,663 |
1,714 |
18,325 |
– |
|||||||||||||||
Other liabilities: |
64,179 |
73,232 |
2,484 |
|||||||||||||||||
NSFR derivative liabilities |
n/a |
129 |
n/a |
|||||||||||||||||
All other liabilities and equity not included in the above categories |
64,179 |
69,655 |
1,929 |
1,519 |
2,484 |
|||||||||||||||
Total Available Stable Funding |
$ |
1,125,173 |
||||||||||||||||||
Required Stable Funding Item |
||||||||||||||||||||
Total NSFR high-quality liquid assets |
$ |
n/a |
$ |
n/a |
$ |
n/a |
$ |
n/a |
$ |
60,032 |
||||||||||
Deposits held at other financial institutions for operational purposes |
– |
1,066 |
– |
– |
533 |
|||||||||||||||
Performing loans and securities |
96,784 |
222,019 |
90,473 |
674,604 |
730,525 |
|||||||||||||||
Performing loans to financial institutions secured by Level 1 HQLA |
– |
78,943 |
10,700 |
– |
15,426 |
|||||||||||||||
Performing loans to financial institutions secured by non-Level 1 |
||||||||||||||||||||
HQLA and unsecured performing loans to financial institutions |
– |
44,111 |
5,432 |
10,350 |
17,815 |
|||||||||||||||
Performing loans to non-financial corporate clients, loans to retail and small business customers, and loans to sovereigns, central banks and PSEs, of which: |
34,813 |
51,389 |
38,466 |
281,454 |
319,701 |
|||||||||||||||
With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk |
n/a |
31,457 |
22,687 |
178 |
27,174 |
|||||||||||||||
Performing residential mortgages, of which: |
30,982 |
36,771 |
31,305 |
303,750 |
274,653 |
|||||||||||||||
With a risk weight of less than or equal to 35% under the Basel II standardized approach for credit risk 6 |
30,982 |
36,771 |
31,305 |
303,750 |
274,653 |
|||||||||||||||
Securities that are not in default and do not qualify as HQLA, including exchange-traded equities |
30,989 |
10,805 |
4,570 |
79,050 |
102,930 |
|||||||||||||||
Assets with matching interdependent liabilities 5 |
– |
2,777 |
1,837 |
19,087 |
– |
|||||||||||||||
Other assets: |
67,972 |
117,644 |
103,607 |
|||||||||||||||||
Physical traded commodities, including gold |
10,312 |
n/a |
n/a |
n/a |
8,964 |
|||||||||||||||
Assets posted as initial margin for derivative contracts and contributions to default funds of CCPs |
16,378 |
13,921 |
||||||||||||||||||
NSFR derivative assets |
n/a |
8,644 |
8,515 |
|||||||||||||||||
NSFR derivative liabilities before deduction of variation margin posted |
n/a |
20,958 |
1,048 |
|||||||||||||||||
All other assets not included in the above categories |
57,660 |
64,917 |
2,103 |
4,644 |
71,159 |
|||||||||||||||
Off-balance sheet items |
n/a |
745,327 |
26,922 |
|||||||||||||||||
Total Required Stable Funding |
$ |
921,619 |
||||||||||||||||||
Net Stable Funding Ratio |
122 |
% | ||||||||||||||||||
As at |
||||||||||||||||||||
October 31, 2022 | ||||||||||||||||||||
Total Available Stable Funding |
$ | 1,058,087 | ||||||||||||||||||
Total Required Stable Funding |
866,383 | |||||||||||||||||||
Net Stable Funding Ratio |
122 | % |
1 |
Items in the “no maturity” time bucket do not have a stated maturity. These may include, but are not limited to, items such as capital with perpetual maturity, non-maturity deposits, short positions, open maturity positions, non-HQLA equities, and physical traded commodities. |
2 |
Weighted values are calculated after the application of respective NSFR weights, as prescribed by the OSFI LAR guideline. |
3 |
As defined by the OSFI LAR guideline, stable deposits from retail and SME customers are deposits that are insured and are either held in transactional accounts or the depositors have an established relationship with the Bank that makes deposit withdrawals highly unlikely. |
4 |
Operational deposits from non-SME business customers are deposits kept with the Bank in order to facilitate their access and ability to conduct payment and settlement activities. These activities include clearing, custody, or cash management services. |
5 |
Interdependent asset and liability items are deemed by OSFI to be interdependent and have RSF and ASF risk factors adjusted to zero. Interdependent liabilities cannot fall due while the asset is still on balance sheet, cannot be used to fund any other assets and principal payments from the asset cannot be used for anything other than repaying the liability. As such, the only interdependent assets and liabilities that qualify for this treatment at the Bank are the liabilities arising from the Canada Mortgage Bonds Program and their corresponding encumbered assets. |
6 |
Includes Residential Mortgages and HELOCs. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 41 |
(millions of Canadian dollars) |
As at |
|||||||
April 30 2023 |
October 31 2022 |
|||||||
P&C deposits – Canadian |
$ |
$ | ||||||
P&C deposits – U.S. 1 |
||||||||
Total |
$ |
$ | |
1 |
P&C deposits in U.S. are presented on a Canadian equivalent basis and therefore period-over-period movements reflect both underlying growth and changes in the foreign exchange rate. |
Canada |
United States |
Europe | ||
Capital Securities Program ($20 billion) Canadian Senior Medium-Term Linked Notes Program ($5 billion) HELOC ABS Program (Genesis Trust II) ($7 billion) |
U.S. SEC (F-3) Registered Capital and Debt Program (US$75 billion) |
United Kingdom Listing Authority (UKLA) Registered Legislative Covered Bond Program ($80 billion) UKLA Registered European Medium-Term Note Program (US$20 billion) |
As at |
||||||||
Long-term funding by currency |
April 30 2023 |
October 31 2022 |
||||||
Canadian dollar |
30 |
% |
31 | % | ||||
U.S. dollar |
36 |
43 | ||||||
Euro |
26 |
20 | ||||||
British pound |
4 |
3 | ||||||
Other |
4 |
3 | ||||||
Total |
100 |
% |
100 | % | ||||
Long-term funding by type |
||||||||
Senior unsecured medium-term notes |
66 |
% |
67 | % | ||||
Covered bonds |
24 |
22 | ||||||
Mortgage securitization 1 |
9 |
10 | ||||||
Term asset-backed securities |
1 |
1 | ||||||
Total |
100 |
% |
100 | % |
1 |
Mortgage securitization includes mortgage-backed securities (MBS) issued to external investors and excludes the residential mortgage trading business. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 42 |
(millions of Canadian dollars) | As at |
|||||||||||||||||||||||||||||||||||
April 30 2023 |
October 31 2022 |
|||||||||||||||||||||||||||||||||||
Less than 1 month |
1 to 3 months |
3 to 6 months |
6 months to 1 year |
Up to 1 year |
Over 1 to 2 years |
Over 2 years |
Total |
Total | ||||||||||||||||||||||||||||
Deposits from banks 2 |
$ |
22,303 |
$ |
2,084 |
$ |
1,670 |
$ |
4,814 |
$ |
30,871 |
$ |
– |
$ |
– |
$ |
30,871 |
$ | 31,833 | ||||||||||||||||||
Bearer deposit notes |
42 |
150 |
231 |
450 |
873 |
– |
– |
873 |
1,275 | |||||||||||||||||||||||||||
Certificates of deposit |
18,404 |
24,502 |
33,407 |
36,306 |
112,619 |
83 |
99 |
112,801 |
98,574 | |||||||||||||||||||||||||||
Commercial paper |
8,141 |
10,915 |
20,966 |
15,885 |
55,907 |
– |
– |
55,907 |
62,906 | |||||||||||||||||||||||||||
Covered bonds |
457 |
750 |
– |
5,957 |
7,164 |
1,689 |
29,900 |
38,753 |
33,978 | |||||||||||||||||||||||||||
Mortgage securitization 3 |
– |
1,069 |
2,703 |
1,690 |
5,462 |
6,017 |
16,109 |
27,588 |
27,684 | |||||||||||||||||||||||||||
Legacy senior unsecured medium-term notes 4 |
2,304 |
6,928 |
1,020 |
896 |
11,148 |
1,956 |
230 |
13,334 |
13,631 | |||||||||||||||||||||||||||
Senior unsecured medium-term notes 5 |
– |
4,666 |
2,368 |
10,443 |
17,477 |
17,122 |
59,054 |
93,653 |
84,956 | |||||||||||||||||||||||||||
Subordinated notes and debentures 6 |
– |
– |
– |
– |
– |
– |
11,366 |
11,366 |
11,290 | |||||||||||||||||||||||||||
Term asset-backed securitization |
– |
– |
– |
480 |
480 |
1,330 |
458 |
2,268 |
1,826 | |||||||||||||||||||||||||||
Other 7 |
41,958 |
8,237 |
2,094 |
8,935 |
61,224 |
2,028 |
609 |
63,861 |
32,603 | |||||||||||||||||||||||||||
Total |
$ |
93,609 |
$ |
59,301 |
$ |
64,459 |
$ |
85,856 |
$ |
303,225 |
$ |
30,225 |
$ |
117,825 |
$ |
451,275 |
$ | 400,556 | ||||||||||||||||||
Of which: |
||||||||||||||||||||||||||||||||||||
Secured |
$ |
18,733 |
$ |
7,234 |
$ |
2,703 |
$ |
14,219 |
$ |
42,889 |
$ |
9,036 |
$ |
46,472 |
$ |
98,397 |
$ | 63,496 | ||||||||||||||||||
Unsecured |
74,876 |
52,067 |
61,756 |
71,637 |
260,336 |
21,189 |
71,353 |
352,878 |
337,060 | |||||||||||||||||||||||||||
Total |
$ |
93,609 |
$ |
59,301 |
$ |
64,459 |
$ |
85,856 |
$ |
303,225 |
$ |
30,225 |
$ |
117,825 |
$ |
451,275 |
$ | 400,556 |
1 |
Excludes Bankers’ acceptances, which are disclosed in the Remaining Contractual Maturity table within the “Managing Risk” section of this document. |
2 |
Includes fixed-term deposits with banks. |
3 |
Includes mortgage backed securities issued to external investors and Wholesale Banking residential mortgage trading business. |
4 |
Includes a) senior debt issued prior to September 23, 2018; and b) senior debt issued on or after September 23, 2018 which is excluded from the bank recapitalization “bail-in” regime, including debt with an original term-to-maturity |
5 |
Comprised of senior debt subject to conversion under the bank recapitalization “bail-in” regime. Excludes $3.7 billion of structured notes subject to conversion under the “bail-in” regime (October 31, 2022 – $2.3 billion). |
6 |
Subordinated notes and debentures are not considered wholesale funding as they may be raised primarily for capital management purposes. |
7 |
Includes fixed-term deposits from non-bank institutions (unsecured) of $21.6 billion (October 31, 2022 – $21.3 billion) and the remaining are non-term deposits. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 43 |
(millions of Canadian dollars) |
As at |
|||||||||||||||||||||||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||||||||||||||||||||||
Less than 1 month |
1 to 3 months |
3 to 6 months |
6 to 9 months |
9 months to 1 year |
Over 1 to 2 years |
Over 2 to 5 years |
Over 5 years |
No specific maturity |
Total |
|||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||
Cash and due from banks |
$ |
$ |
– |
$ |
– |
$ |
– |
$ |
– |
$ |
– |
$ |
– |
$ |
– |
$ |
– |
$ |
||||||||||||||||||||||
Interest-bearing deposits with banks |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||||
Trading loans, securities, and other 1 |
||||||||||||||||||||||||||||||||||||||||
Non-trading financial assets at fair value through profit or loss |
– |
|||||||||||||||||||||||||||||||||||||||
Derivatives |
– |
|||||||||||||||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss |
– |
|||||||||||||||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||||||||||
Debt securities at amortized cost, net of allowance for credit losses |
( |
) | ||||||||||||||||||||||||||||||||||||||
Securities purchased under reverse repurchase agreements 2 |
– |
|||||||||||||||||||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||||||||||||||
Residential mortgages |
– |
|||||||||||||||||||||||||||||||||||||||
Consumer instalment and other personal |
||||||||||||||||||||||||||||||||||||||||
Credit card |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||||||||||
Total loans |
||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses |
– |
– |
– |
– |
– |
– |
– |
– |
( |
) | ( |
) | ||||||||||||||||||||||||||||
Loans, net of allowance for loan losses |
||||||||||||||||||||||||||||||||||||||||
Customers’ liability under acceptances |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||||
Investment in Schwab |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Goodwill 3 |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Other intangibles 3 |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Land, buildings, equipment, and other depreciable assets 3 |
– |
|||||||||||||||||||||||||||||||||||||||
Deferred tax assets |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Amounts receivable from brokers, dealers, and clients |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Other assets |
||||||||||||||||||||||||||||||||||||||||
Total assets |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||||
Trading deposits |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
– |
$ |
|||||||||||||||||||||||||||||
Derivatives |
– |
|||||||||||||||||||||||||||||||||||||||
Securitization liabilities at fair value |
– |
– |
||||||||||||||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
– |
|||||||||||||||||||||||||||||||||||||||
Deposits 4,5 |
||||||||||||||||||||||||||||||||||||||||
Personal |
||||||||||||||||||||||||||||||||||||||||
Banks |
– |
– |
||||||||||||||||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||||||||||
Total deposits |
||||||||||||||||||||||||||||||||||||||||
Acceptances |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||||
Obligations related to securities sold short 1 |
||||||||||||||||||||||||||||||||||||||||
Obligations related to securities sold under repurchase agreements 2 |
||||||||||||||||||||||||||||||||||||||||
Securitization liabilities at amortized cost |
– |
– |
||||||||||||||||||||||||||||||||||||||
Amounts payable to brokers, dealers, and clients |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Insurance-related liabilities |
||||||||||||||||||||||||||||||||||||||||
Other liabilities |
||||||||||||||||||||||||||||||||||||||||
Subordinated notes and debentures |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||||||||||||||
Equity |
– |
– |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||||||
Total liabilities and equity |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||
Off-balance sheet commitments |
||||||||||||||||||||||||||||||||||||||||
Credit and liquidity commitments 6,7 |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||
Other commitments 8 |
||||||||||||||||||||||||||||||||||||||||
Unconsolidated structured entity commitments |
– |
– |
– |
– |
– |
|||||||||||||||||||||||||||||||||||
Total off-balance sheet commitments |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
1 |
Amount has been recorded according to the remaining contractual maturity of the underlying security. |
2 |
Certain contracts considered short-term are presented in ‘less than 1 month’ category. |
3 |
Certain non-financial assets have been recorded as having ‘no specific maturity’. |
4 |
As the timing of demand deposits and notice deposits is non-specific and callable by the depositor, obligations have been included as having ‘no specific maturity’. |
5 |
Includes $ |
6 |
Includes $ |
7 |
Commitments to extend credit exclude personal lines of credit and credit card lines, which are unconditionally cancellable at the Bank’s discretion at any time. |
8 |
Includes various purchase commitments as well as commitments for leases not yet commenced, and lease-related payments. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 44 |
(millions of Canadian dollars) | As at |
|||||||||||||||||||||||||||||||||||||||
October 31, 2022 | ||||||||||||||||||||||||||||||||||||||||
Less than 1 month |
1 to 3 months |
3 to 6 months |
6 to 9 months |
9 months to 1 year |
Over 1 to 2 years |
Over 2 to 5 years |
Over 5 years |
No specific maturity |
Total | |||||||||||||||||||||||||||||||
Assets |
||||||||||||||||||||||||||||||||||||||||
Cash and due from banks |
$ | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | – | $ | ||||||||||||||||||||||
Interest-bearing deposits with banks |
– | – | – | – | – | |||||||||||||||||||||||||||||||||||
Trading loans, securities, and other 1 |
||||||||||||||||||||||||||||||||||||||||
Non-trading financial assets at fair value through profit or loss |
– | – | ||||||||||||||||||||||||||||||||||||||
Derivatives |
– | |||||||||||||||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss |
– | |||||||||||||||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||||||||||
Debt securities at amortized cost, net of allowance for credit losses |
( |
) | ||||||||||||||||||||||||||||||||||||||
Securities purchased under reverse repurchase agreements 2 |
– | – | – | |||||||||||||||||||||||||||||||||||||
Loans |
||||||||||||||||||||||||||||||||||||||||
Residential mortgages |
– | |||||||||||||||||||||||||||||||||||||||
Consumer instalment and other personal |
||||||||||||||||||||||||||||||||||||||||
Credit card |
– | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||||||||||
Total loans |
||||||||||||||||||||||||||||||||||||||||
Allowance for loan losses |
– | – | – | – | – | – | – | – | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Loans, net of allowance for loan losses |
||||||||||||||||||||||||||||||||||||||||
Customers’ liability under acceptances |
– | – | – | – | – | |||||||||||||||||||||||||||||||||||
Investment in Schwab |
– | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||
Goodwill 3 |
– | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||
Other intangibles 3 |
– | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||
Land, buildings, equipment, and other depreciable assets 3 |
– | – | ||||||||||||||||||||||||||||||||||||||
Deferred tax assets |
– | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||
Amounts receivable from brokers, dealers, and clients |
– | – | – | – | – | – | – | |||||||||||||||||||||||||||||||||
Other assets |
||||||||||||||||||||||||||||||||||||||||
Total assets |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Liabilities |
||||||||||||||||||||||||||||||||||||||||
Trading deposits |
$ | $ | $ | $ | $ | $ | $ | $ | $ | – | $ | |||||||||||||||||||||||||||||
Derivatives |
– | |||||||||||||||||||||||||||||||||||||||
Securitization liabilities at fair value |
– | |||||||||||||||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
– | – | ||||||||||||||||||||||||||||||||||||||
Deposits 4,5 |
||||||||||||||||||||||||||||||||||||||||
Personal |
||||||||||||||||||||||||||||||||||||||||
Banks |
– | – | ||||||||||||||||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||||||||||||||||||
Total deposits |
||||||||||||||||||||||||||||||||||||||||
Acceptances |
– | – | – | – | – | |||||||||||||||||||||||||||||||||||
Obligations related to securities sold short 1 |
||||||||||||||||||||||||||||||||||||||||
Obligations related to securities sold under repurchase agreements 2 |
– | – | – | |||||||||||||||||||||||||||||||||||||
Securitization liabilities at amortized cost |
– | – | ||||||||||||||||||||||||||||||||||||||
Amounts payable to brokers, dealers, and clients |
– | – | – | – | – | – | – | |||||||||||||||||||||||||||||||||
Insurance-related liabilities |
||||||||||||||||||||||||||||||||||||||||
Other liabilities |
||||||||||||||||||||||||||||||||||||||||
Subordinated notes and debentures |
– | – | – | – | – | – | – | |||||||||||||||||||||||||||||||||
Equity |
– | – | – | – | – | – | – | – | ||||||||||||||||||||||||||||||||
Total liabilities and equity |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Off-balance sheet commitments |
||||||||||||||||||||||||||||||||||||||||
Credit and liquidity commitments 6,7 |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||
Other commitments 8 |
||||||||||||||||||||||||||||||||||||||||
Unconsolidated structured entity commitments |
– | – | – | – | ||||||||||||||||||||||||||||||||||||
Total off-balance sheet commitments |
$ | $ | $ | $ | $ | $ | $ | $ | $ | $ |
1 |
Amount has been recorded according to the remaining contractual maturity of the underlying security. |
2 |
Certain contracts considered short-term are presented in ‘less than 1 month’ category. |
3 |
Certain non-financial assets have been recorded as having ‘no specific maturity’. |
4 |
As the timing of demand deposits and notice deposits is non-specific and callable by the depositor, obligations have been included as having ‘no specific maturity’. |
5 |
Includes $ |
6 |
Includes $ |
7 |
Commitments to extend credit exclude personal lines of credit and credit card lines, which are unconditionally cancellable at the Bank’s discretion at any time. |
8 |
Includes various purchase commitments as well as commitments for leases not yet commenced, and lease-related payments. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 45 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 46 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 47 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 48 |
• | The entity’s business model relates to managing financial assets (such as bank trading activity), and, as such, an asset is held with the intention of collecting its contractual cash flows; and |
• | An asset’s contractual cash flows represent SPPI. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 49 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 50 |
INTERIM CONSOLIDATED BALANCE SHEET |
||||||||
(As at and in millions of Canadian dollars) | April 30, 2023 |
October 31, 2022 | ||||||
ASSETS |
||||||||
Cash and due from banks |
$ |
$ | ||||||
Interest-bearing deposits with banks |
||||||||
Trading loans, securities, and other (Note 4) |
||||||||
Non-trading financial assets at fair value through profit or loss (Note 4) |
||||||||
Derivatives (Note 4) |
||||||||
Financial assets designated at fair value through profit or loss (Note 4) |
||||||||
Financial assets at fair value through other comprehensive income (Note 4) |
||||||||
Debt securities at amortized cost, net of allowance for credit losses (Notes 4, 5) |
||||||||
Securities purchased under reverse repurchase agreements |
||||||||
Loans (Notes 4, 6) |
||||||||
Residential mortgages |
||||||||
Consumer instalment and other personal |
||||||||
Credit card |
||||||||
Business and government |
||||||||
Allowance for loan losses (Note 6) |
( |
) |
( |
) | ||||
Loans, net of allowance for loan losses |
||||||||
Other |
||||||||
Customers’ liability under acceptances |
||||||||
Investment in Schwab (Note 7) |
||||||||
Goodwill (Note 9) |
||||||||
Other intangibles |
||||||||
Land, buildings, equipment, and other depreciable assets |
||||||||
Deferred tax assets |
||||||||
Amounts receivable from brokers, dealers, and clients |
||||||||
Other assets (Note 10) |
||||||||
Total assets |
$ |
$ | ||||||
LIABILITIES |
||||||||
Trading deposits (Notes 4, 11) |
$ |
$ | ||||||
Derivatives (Note 4) |
||||||||
Securitization liabilities at fair value (Note 4) |
||||||||
Financial liabilities designated at fair value through profit or loss (Notes 4, 11) |
||||||||
Deposits (Notes 4, 11) |
||||||||
Personal |
||||||||
Banks |
||||||||
Business and government |
||||||||
Other |
||||||||
Acceptances |
||||||||
Obligations related to securities sold short (Note 4) |
||||||||
Obligations related to securities sold under repurchase agreements |
||||||||
Securitization liabilities at amortized cost (Note 4) |
||||||||
Amounts payable to brokers, dealers, and clients |
||||||||
Insurance-related liabilities |
||||||||
Other liabilities (Note 12) |
||||||||
Subordinated notes and debentures (Note 4) |
||||||||
Total liabilities |
||||||||
EQUITY |
||||||||
Shareholders’ Equity |
||||||||
Common shares (Note 13) |
||||||||
Preferred shares and other equity instruments (Note 13) |
||||||||
Treasury – common shares (Note 13) |
( |
) |
( |
) | ||||
Treasury – preferred shares and other equity instruments (Note 13) |
( |
) |
( |
) | ||||
Contributed surplus |
||||||||
Retained earnings |
||||||||
Accumulated other comprehensive income (loss) |
||||||||
Total equity |
||||||||
Total liabilities and equity |
$ |
$ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 51 |
INTERIM CONSOLIDATED STATEMENT OF INCOME |
||||||||||||||||
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
|||||||||||||
Interest income 1 (Note 20) |
||||||||||||||||
Loans |
$ |
$ | $ |
$ | ||||||||||||
Securities |
||||||||||||||||
Interest |
||||||||||||||||
Dividends |
||||||||||||||||
Deposits with banks |
||||||||||||||||
Interest expense (Note 20) |
||||||||||||||||
Deposits |
||||||||||||||||
Securitization liabilities |
||||||||||||||||
Subordinated notes and debentures |
||||||||||||||||
Other |
||||||||||||||||
Net interest income |
||||||||||||||||
Non-interest income |
||||||||||||||||
Investment and securities services |
||||||||||||||||
Credit fees |
||||||||||||||||
Trading income (loss) |
( |
) | ||||||||||||||
Service charges |
||||||||||||||||
Card services |
||||||||||||||||
Insurance revenue |
||||||||||||||||
Other income (loss) (Note 22 ) |
( |
) |
( |
) |
||||||||||||
Total revenue |
||||||||||||||||
Provision for (recovery of) credit losses (Note 6) |
||||||||||||||||
Insurance claims and related expenses |
||||||||||||||||
Non-interest expenses |
||||||||||||||||
Salaries and employee benefits |
||||||||||||||||
Occupancy, including depreciation |
||||||||||||||||
Technology and equipment, including depreciation |
||||||||||||||||
Amortization of other intangibles |
||||||||||||||||
Communication and marketing |
||||||||||||||||
Brokerage-related and sub-advisory fees |
||||||||||||||||
Professional, advisory and outside services |
||||||||||||||||
Other (Note 18 ) |
||||||||||||||||
Income before income taxes and share of net income from investment in Schwab |
||||||||||||||||
Provision for (recovery of) income taxes (Note 16) |
||||||||||||||||
Share of net income from investment in Schwab (Note 7) |
||||||||||||||||
Net income |
||||||||||||||||
Preferred dividends and distributions on other equity instruments |
||||||||||||||||
Net income available to common shareholders |
$ |
$ | $ |
$ | ||||||||||||
Earnings per share (Note 17) |
||||||||||||||||
Basic |
$ |
$ | $ |
$ | ||||||||||||
Diluted |
||||||||||||||||
Dividends per common share |
1 |
Includes $ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 52 |
INTERIM CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME |
||||||||||||||||
(millions of Canadian dollars) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
|||||||||||||
Net income |
$ |
$ |
$ |
$ |
||||||||||||
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) |
( |
) |
( |
) | ||||||||||||
Reclassification to earnings of net loss/(gain) |
( |
) |
– |
( |
) |
( |
) | |||||||||
Changes in allowance for credit losses recognized in earnings |
– |
( |
) |
( |
) | |||||||||||
Income taxes relating to: |
||||||||||||||||
Change in unrealized gain/(loss) |
( |
) |
( |
) |
||||||||||||
Reclassification to earnings of net loss/(gain) |
– |
|||||||||||||||
( |
) |
( |
) | |||||||||||||
Net change in unrealized foreign currency translation gain/(loss) on investments in foreign operations, net of hedging activities |
||||||||||||||||
Unrealized gain/(loss) |
( |
) |
||||||||||||||
Reclassification to earnings of net loss/(gain) |
– |
– |
( |
) |
– |
|||||||||||
Net gain/(loss) on hedges |
( |
) |
( |
) |
( |
) | ||||||||||
Reclassification to earnings of net loss/(gain) on hedges |
– |
– |
– |
|||||||||||||
Income taxes relating to: |
||||||||||||||||
Net gain/(loss) on hedges |
( |
) |
||||||||||||||
Reclassification to earnings of net loss/(gain) on hedges |
– | – |
– | – |
||||||||||||
( |
) |
|||||||||||||||
Net change in gain/(loss) on derivatives designated as cash flow hedges |
||||||||||||||||
Change in gain/(loss) |
( |
) |
( |
) | ||||||||||||
Reclassification to earnings of loss/(gain) |
( |
) |
( |
) |
( |
) | ||||||||||
Income taxes relating to: |
||||||||||||||||
Change in gain/(loss) |
( |
) |
( |
) |
||||||||||||
Reclassification to earnings of loss/(gain) |
( |
) |
||||||||||||||
( |
) |
( |
) | |||||||||||||
Share of other comprehensive income (loss) from investment in Schwab |
( |
) |
( |
) | ||||||||||||
Items that will not be subsequently reclassified to net income |
||||||||||||||||
Remeasurement gain/(loss) on employee benefit plans |
||||||||||||||||
Gain/(loss) |
( |
) |
||||||||||||||
Income taxes |
( |
) |
( |
) |
( |
) | ||||||||||
( |
) |
|||||||||||||||
Change in net unrealized gain/(loss) on equity securities designated at fair value through other comprehensive income |
||||||||||||||||
Change in net unrealized gain/(loss) |
( |
) |
( |
) |
||||||||||||
Income taxes |
( |
) |
( |
) | ||||||||||||
( |
) |
( |
) |
|||||||||||||
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) |
( |
) |
( |
) | ||||||||||||
Income taxes |
( |
) |
– |
|||||||||||||
( |
) |
( |
) | |||||||||||||
Total other comprehensive income (loss) |
( |
) |
( |
) | ||||||||||||
Total comprehensive income (loss) |
$ |
$ |
( |
) |
$ |
$ |
||||||||||
Attributable to: |
||||||||||||||||
Common shareholders |
$ |
$ |
( |
) |
$ |
$ |
||||||||||
Preferred shareholders and other equity instrument holders |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 53 |
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN EQUITY |
||||||||||||||||
(millions of Canadian dollars) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
Common shares (Note 13) |
||||||||||||||||
Balance at beginning of period |
$ |
$ | $ |
$ | ||||||||||||
Proceeds from shares issued on exercise of stock options |
||||||||||||||||
Shares issued as a result of dividend reinvestment plan |
||||||||||||||||
Purchase of shares for cancellation and other |
– |
( |
) | – |
( |
) | ||||||||||
Balance at end of period |
||||||||||||||||
Preferred shares and other equity instruments (Note 13) |
||||||||||||||||
Balance at beginning of period |
||||||||||||||||
Issue of shares and other equity instruments |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance at end of period |
||||||||||||||||
Treasury – common shares (Note 13) |
||||||||||||||||
Balance at beginning of period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Purchase of shares |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Sale of shares |
||||||||||||||||
Balance at end of period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Treasury – preferred shares and other equity instruments (Note 13) |
||||||||||||||||
Balance at beginning of period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Purchase of shares and other equity instruments |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Sale of shares and other equity instruments |
||||||||||||||||
Balance at end of period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Contributed surplus |
||||||||||||||||
Balance at beginning of period |
||||||||||||||||
Net premium (discount) on sale of treasury instruments |
( |
) |
( |
) | ( |
) |
||||||||||
Issuance of stock options, net of options exercised |
||||||||||||||||
Other |
( |
) |
( |
) |
( |
) | ||||||||||
Balance at end of period |
||||||||||||||||
Retained earnings |
||||||||||||||||
Balance at beginning of period |
||||||||||||||||
Net income attributable to equity instrument holders |
||||||||||||||||
Common dividends |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Preferred dividends and distributions on other equity instruments |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Share and other equity instrument issue expenses |
– |
( |
) | – |
( |
) | ||||||||||
Net premium on repurchase of common shares and redemption of preferred shares and other equity instruments (Note 13) |
– |
( |
) | – |
( |
) | ||||||||||
Remeasurement gain/(loss) on employee benefit plans |
( |
) |
||||||||||||||
Realized gain/(loss) on equity securities designated at fair value through other comprehensive income |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Balance at end of period |
||||||||||||||||
Accumulated other comprehensive income (loss) |
||||||||||||||||
Net unrealized gain/(loss) on financial assets at fair value through other comprehensive income: |
||||||||||||||||
Balance at beginning of period |
( |
) |
( |
) |
||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
Allowance for credit losses |
– |
( |
) |
( |
) | |||||||||||
Balance at end of period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net unrealized gain/(loss) on equity securities designated at fair value through other comprehensive income: |
||||||||||||||||
Balance at beginning of period |
||||||||||||||||
Other comprehensive income (loss) |
( |
) |
( |
) |
||||||||||||
Reclassification of loss/(gain) to retained earnings |
||||||||||||||||
Balance at end of period |
( |
) |
( |
) |
||||||||||||
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 |
( |
) |
||||||||||||||
Other comprehensive income (loss) |
( |
) |
( |
) | ||||||||||||
Balance at end of period |
( |
) |
( |
) |
||||||||||||
Net unrealized foreign currency translation gain/(loss) on investments in foreign operations, net of hedging activities: |
||||||||||||||||
Balance at beginning of period |
||||||||||||||||
Other comprehensive income (loss) |
( |
) |
||||||||||||||
Balance at end of period |
||||||||||||||||
Net gain/(loss) on derivatives designated as cash flow hedges: |
||||||||||||||||
Balance at beginning of period |
( |
) |
( |
) |
||||||||||||
Other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
Balance at end of period |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Share of accumulated other comprehensive income (loss) from investment in Schwab |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Total accumulated other comprehensive income |
||||||||||||||||
Total equity |
$ |
$ |
$ |
$ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 54 |
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) |
(millions of Canadian dollars) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
|||||||||||||
Cash flows from (used in) operating activities |
||||||||||||||||
Net income |
$ |
$ | $ |
$ | ||||||||||||
Adjustments to determine net cash flows from (used in) operating activities |
||||||||||||||||
Provision for (recovery of) credit losses (Note 6) |
||||||||||||||||
Depreciation |
||||||||||||||||
Amortization of other intangibles |
||||||||||||||||
Net securities loss/(gain) (Note 5) |
– | ( |
) | |||||||||||||
Share of net income from investment in Schwab (Note 7) |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Deferred taxes |
( |
) |
( |
) |
||||||||||||
Changes in operating assets and liabilities |
||||||||||||||||
Interest receivable and payable (Notes 10, 12) |
( |
) | ( |
) | ||||||||||||
Securities sold under repurchase agreements |
( |
) | ( |
) | ||||||||||||
Securities purchased under reverse repurchase agreements |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Securities sold short |
||||||||||||||||
Trading loans, securities, and other |
( |
) |
( |
) |
||||||||||||
Loans net of securitization and sales |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Deposits |
( |
) |
( |
) |
||||||||||||
Derivatives |
( |
) |
( |
) | ( |
) | ||||||||||
Non-trading financial assets at fair value through profit or loss |
( |
) | ( |
) | ||||||||||||
Financial assets and liabilities designated at fair value through profit or loss |
( |
) | ||||||||||||||
Securitization liabilities |
( |
) | ( |
) |
( |
) | ||||||||||
Current taxes |
( |
) | ( |
) | ||||||||||||
Brokers, dealers, and clients amounts receivable and payable |
( |
) |
||||||||||||||
Other, including unrealized foreign currency translation loss/(gain) |
( |
) |
( |
) |
( |
) | ||||||||||
Net cash from (used in) operating activities |
( |
) |
( |
) | ( |
) |
||||||||||
Cash flows from (used in) financing activities |
||||||||||||||||
Redemption or repurchase of subordinated notes and debentures |
( |
) |
( |
) | ||||||||||||
Common shares issued, net |
||||||||||||||||
Repurchase of common shares (Note 13) |
– |
( |
) | – |
( |
) | ||||||||||
Preferred shares and other equity instruments issued, net (Note 13) |
– |
– |
||||||||||||||
Redemption of preferred shares and other equity instruments |
– |
– | – |
( |
) | |||||||||||
Sale of treasury shares and other equity instruments |
||||||||||||||||
Purchase of treasury shares and other equity instruments (Note 13) |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Dividends paid on shares and distributions paid on other equity instruments |
– | ( |
) |
( |
) | |||||||||||
Repayment of lease liabilities |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net cash from (used in) financing activities |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Cash flows from (used in) investing activities |
||||||||||||||||
Interest-bearing deposits with banks |
||||||||||||||||
Activities in financial assets at fair value through other comprehensive income |
||||||||||||||||
Purchases |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Proceeds from maturities |
||||||||||||||||
Proceeds from sales |
||||||||||||||||
Activities in debt securities at amortized cost |
||||||||||||||||
Purchases |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Proceeds from maturities |
||||||||||||||||
Proceeds from sales |
– | |||||||||||||||
Net purchases of land, buildings, equipment, other depreciable assets, and other intangibles |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Net cash acquired from (paid for) divestitures and acquisitions |
( |
) |
– | ( |
) |
– | ||||||||||
Net cash from (used in) investing activities |
( |
) | ||||||||||||||
Effect of exchange rate changes on cash and due from banks |
( |
) |
||||||||||||||
Net increase (decrease) in cash and due from banks |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||
Cash and due from banks at beginning of period |
||||||||||||||||
Cash and due from banks at end of period |
$ |
$ | $ |
$ | ||||||||||||
Supplementary disclosure of cash flows from operating activities |
||||||||||||||||
Amount of income taxes paid (refunded) during the period |
$ |
$ | $ |
$ | ||||||||||||
Amount of interest paid during the period |
||||||||||||||||
Amount of interest received during the period |
||||||||||||||||
Amount of dividends received during the period |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 55 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 56 |
(millions of Canadian dollars) |
As at |
|||||||||||||||
April 30, 2023 |
October 31, 2022 |
|||||||||||||||
Carrying value |
Fair value |
Carrying value |
Fair value |
|||||||||||||
FINANCIAL ASSETS |
||||||||||||||||
Debt securities at amortized cost, net of allowance for credit losses |
||||||||||||||||
Government and government-related securities |
$ |
$ |
$ | $ | ||||||||||||
Other debt securities |
||||||||||||||||
Total debt securities at amortized cost, net of allowance for credit losses |
||||||||||||||||
Total loans, net of allowance for loan losses |
||||||||||||||||
Total financial assets not carried at fair value |
$ |
$ |
$ | $ | ||||||||||||
FINANCIAL LIABILITIES |
||||||||||||||||
Deposits |
$ |
$ |
$ | $ | ||||||||||||
Securitization liabilities at amortized cost |
||||||||||||||||
Subordinated notes and debentures |
||||||||||||||||
Total financial liabilities not carried at fair value |
$ |
$ |
$ | |
$ | |
1 |
This table excludes financial assets and liabilities where the carrying value approximates their fair value. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 57 |
(millions of Canadian dollars) |
As at |
|||||||||||||||||||||||||||||||
April 30, 2023 |
October 31, 2022 |
|||||||||||||||||||||||||||||||
Level 1 |
Level 2 |
Level 3 |
Total |
Level 1 |
Level 2 |
Level 3 |
Total |
|||||||||||||||||||||||||
FINANCIAL ASSETS AND COMMODITIES |
||||||||||||||||||||||||||||||||
Trading loans, securities, and other 1 |
||||||||||||||||||||||||||||||||
Government and government-related securities |
||||||||||||||||||||||||||||||||
Canadian government debt |
||||||||||||||||||||||||||||||||
Federal |
$ |
$ |
$ |
– |
$ |
$ | $ | $ | – | $ | ||||||||||||||||||||||
Provinces |
– |
– |
– | – | ||||||||||||||||||||||||||||
U.S. federal, state, municipal governments, and agencies debt |
– |
– | ||||||||||||||||||||||||||||||
Other OECD 2 government-guaranteed debt |
– |
– |
– | – | ||||||||||||||||||||||||||||
Mortgage-backed securities |
– |
– |
– | – | ||||||||||||||||||||||||||||
Other debt securities |
||||||||||||||||||||||||||||||||
Canadian issuers |
– |
– |
– | – | ||||||||||||||||||||||||||||
Other issuers |
– |
– | ||||||||||||||||||||||||||||||
Equity securities |
– | |||||||||||||||||||||||||||||||
Trading loans |
– |
– |
– | – | ||||||||||||||||||||||||||||
Commodities |
– |
– | ||||||||||||||||||||||||||||||
Retained interests |
– |
– |
– | – | ||||||||||||||||||||||||||||
Non-trading financial assets at fair value through profit or loss |
||||||||||||||||||||||||||||||||
Securities |
||||||||||||||||||||||||||||||||
Loans |
– |
– |
– | – | ||||||||||||||||||||||||||||
Derivatives |
||||||||||||||||||||||||||||||||
Interest rate contracts |
– | |||||||||||||||||||||||||||||||
Foreign exchange contracts |
||||||||||||||||||||||||||||||||
Credit contracts |
– |
– |
– | – | ||||||||||||||||||||||||||||
Equity contracts |
– |
– | ||||||||||||||||||||||||||||||
Commodity contracts |
||||||||||||||||||||||||||||||||
Financial assets designated at fair value through profit or loss |
||||||||||||||||||||||||||||||||
Securities 1 |
– |
– |
– | – | ||||||||||||||||||||||||||||
– |
– |
– | – | |||||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||
Government and government-related securities |
||||||||||||||||||||||||||||||||
Canadian government debt |
||||||||||||||||||||||||||||||||
Federal |
– |
– |
– | – | ||||||||||||||||||||||||||||
Provinces |
– |
– |
– | – | ||||||||||||||||||||||||||||
U.S. federal, state, municipal governments, and agencies debt |
– |
– | – | |||||||||||||||||||||||||||||
Other OECD government-guaranteed debt |
– |
– |
– | – | ||||||||||||||||||||||||||||
Mortgage-backed securities |
– |
– |
– | – | ||||||||||||||||||||||||||||
Other debt securities |
||||||||||||||||||||||||||||||||
Asset-backed securities |
– |
– |
– | – | ||||||||||||||||||||||||||||
Corporate and other debt |
– |
– | ||||||||||||||||||||||||||||||
Equity securities |
||||||||||||||||||||||||||||||||
Loans |
– |
– |
– | – | ||||||||||||||||||||||||||||
Securities purchased under reverse repurchase agreements |
– |
– |
– | – | ||||||||||||||||||||||||||||
FINANCIAL LIABILITIES |
||||||||||||||||||||||||||||||||
Trading deposits |
– |
– | ||||||||||||||||||||||||||||||
Derivatives |
||||||||||||||||||||||||||||||||
Interest rate contracts |
||||||||||||||||||||||||||||||||
Foreign exchange contracts |
||||||||||||||||||||||||||||||||
Credit contracts |
– |
– |
– | – | ||||||||||||||||||||||||||||
Equity contracts |
– |
– | ||||||||||||||||||||||||||||||
Commodity contracts |
||||||||||||||||||||||||||||||||
Securitization liabilities at fair value |
– |
– |
– | – | ||||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
– | |||||||||||||||||||||||||||||||
Obligations related to securities sold short 1 |
– |
– | ||||||||||||||||||||||||||||||
Obligations related to securities sold under repurchase agreements |
– |
– |
– | – |
1 |
Balances reflect the reduction of securities owned (long positions) by the amount of identical securities sold but not yet purchased (short positions). |
2 |
Organisation for Economic Co-operation and Development (OECD). |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 58 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 59 |
Reconciliation of Changes in Fair Value for Level 3 Assets and Liabilities |
|
|||||||||||||||||||||||||||||||||||
(millions of Canadian dollars) |
Fair value as at February 1 2023 |
Total realized and unrealized gains (losses) |
Movements |
Transfers |
Fair value as at April 30 2023 |
Change in unrealized gains (losses) on instruments still held 5 |
||||||||||||||||||||||||||||||
Included in income |
1 |
Included in OCI |
2,3 |
Purchases/ Issuances |
Sales/ Settlements |
4 |
Into Level 3 |
Out of Level 3 |
||||||||||||||||||||||||||||
FINANCIAL ASSETS |
||||||||||||||||||||||||||||||||||||
Trading loans, securities, and other |
||||||||||||||||||||||||||||||||||||
Other debt securities |
$ |
$ |
( |
) |
$ |
– |
$ |
$ |
( |
) |
$ |
– |
$ |
( |
) |
$ |
$ |
( |
) | |||||||||||||||||
Equity securities |
– |
( |
) |
– |
( |
) |
– |
– |
( |
) | ||||||||||||||||||||||||||
( |
) |
– |
( |
) |
– |
( |
) |
( |
) | |||||||||||||||||||||||||||
Non-trading financial assets at fair value through profit or loss |
||||||||||||||||||||||||||||||||||||
Securities |
– |
( |
) |
– |
– |
|||||||||||||||||||||||||||||||
Loans |
– |
– |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||||||||
– |
( |
) |
– |
– |
||||||||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||||||
Other debt securities |
– |
( |
) |
( |
) |
– |
– |
– |
||||||||||||||||||||||||||||
Equity securities |
– |
( |
) |
( |
) |
– |
– |
( |
) | |||||||||||||||||||||||||||
$ |
$ |
– |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
– |
$ |
– |
$ |
$ |
( |
) | |||||||||||||||||||
FINANCIAL LIABILITIES |
||||||||||||||||||||||||||||||||||||
Trading deposits 6 |
$ |
( |
) |
$ |
( |
) |
$ |
– |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||
Derivatives 7 |
||||||||||||||||||||||||||||||||||||
Interest rate contracts |
( |
) |
( |
) |
– |
– |
– |
– |
( |
) |
||||||||||||||||||||||||||
Foreign exchange contracts |
( |
) |
– |
– |
– |
– |
– |
– |
||||||||||||||||||||||||||||
Equity contracts |
( |
) |
– |
( |
) |
– |
( |
) |
( |
) |
||||||||||||||||||||||||||
Commodity contracts |
– |
– |
( |
) |
– |
– |
( |
) |
( |
) | ||||||||||||||||||||||||||
( |
) |
– |
( |
) |
– |
( |
) |
( |
) |
|||||||||||||||||||||||||||
Financial liabilities designated at fair profit or loss |
( |
) |
– |
( |
) |
– |
– |
( |
) |
( |
) | |||||||||||||||||||||||||
Obligations related to securities sold short |
– |
– |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||||||||
Fair value as at November 1 2022 |
Total realized and unrealized gains (losses) |
Movements |
Transfers |
Fair value as at April 30 2023 |
Change in unrealized gains (losses) on instruments still held 5 |
|||||||||||||||||||||||||||||||
Included in income |
1 |
Included in OCI |
3 |
Purchases/ Issuances |
Sales/ Settlements |
4 |
Into Level 3 |
Out of Level 3 |
||||||||||||||||||||||||||||
FINANCIAL ASSETS |
||||||||||||||||||||||||||||||||||||
Trading loans, securities, and other |
||||||||||||||||||||||||||||||||||||
Other debt securities |
$ |
$ |
$ |
– |
$ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
$ |
( |
) | ||||||||||||||||||||
Equity securities |
– |
( |
) |
– |
( |
) |
– |
– |
( |
) | ||||||||||||||||||||||||||
– |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||
Non-trading financial assets at fair value through profit or loss |
||||||||||||||||||||||||||||||||||||
Securities |
– |
( |
) |
– |
– |
|||||||||||||||||||||||||||||||
Loans |
– |
– |
– |
– |
– |
– |
– |
– |
– |
|||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||
– |
( |
) |
– |
– |
||||||||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||||||
Other debt securities |
– |
( |
) |
( |
) |
– |
– |
– |
||||||||||||||||||||||||||||
Equity securities |
– |
( |
) |
( |
) |
– |
– |
( |
) | |||||||||||||||||||||||||||
$ |
$ |
– |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
– |
$ |
– |
$ |
$ |
( |
) | |||||||||||||||||||
FINANCIAL LIABILITIES |
||||||||||||||||||||||||||||||||||||
Trading deposits 6 |
$ |
( |
) |
$ |
( |
) |
$ |
– |
$ |
( |
) | $ |
$ |
( |
) |
$ |
$ |
( |
) |
$ |
( |
) | ||||||||||||||
Derivatives 7 |
|
|||||||||||||||||||||||||||||||||||
Interest rate contracts |
( |
) |
( |
) |
– |
– |
– |
– |
( |
) |
( |
) | ||||||||||||||||||||||||
Foreign exchange contracts |
( |
) |
– |
– |
– |
– |
( |
) | ||||||||||||||||||||||||||||
Equity contracts |
( |
) |
– |
( |
) |
( |
) |
( |
) |
( |
) |
|||||||||||||||||||||||||
Commodity contracts |
– |
– |
( |
) |
– |
– |
( |
) |
( |
) | ||||||||||||||||||||||||||
( |
) |
– |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
( |
) |
– |
( |
) |
– |
– |
( |
) |
|||||||||||||||||||||||||||
Obligations related to securities sold short |
– |
– |
– |
– |
– |
– |
– |
– |
– |
1 |
Gains/losses on financial assets and liabilities are recognized within Non-interest Income on the Interim Consolidated Statement of Income. |
2 |
Other comprehensive income. |
3 |
Includes realized gains/losses transferred to retained earnings on disposal of equities designated at fair value through other comprehensive income (FVOCI). Refer to Note 5 for further details. |
4 |
Includes foreign exchange. |
5 |
Changes in unrealized gains/losses on financial assets at FVOCI are recognized in accumulated other comprehensive income (AOCI). |
6 |
Issuances and repurchases of trading deposits are reported on a gross basis. |
7 |
Consists of derivative assets of $ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 60 |
Reconciliation of Changes in Fair Value for Level 3 Assets and Liabilities |
||||||||||||||||||||||||||||||||||||
(millions of Canadian dollars) | Fair value as at February 1 2022 |
Total realized and unrealized gains (losses) |
Movements | Transfers | Fair value as at April 30 2022 |
Change in unrealized gains (losses) on instruments still held 4 |
||||||||||||||||||||||||||||||
Included in income |
1 |
Included in OCI |
2 |
Purchases/ Issuances |
Sales/ Settlements |
3 |
Into Level 3 |
Out of Level 3 |
||||||||||||||||||||||||||||
FINANCIAL ASSETS |
||||||||||||||||||||||||||||||||||||
Trading loans, securities, and other |
||||||||||||||||||||||||||||||||||||
Government and government-related securities |
$ | $ | – | $ | – | $ | – | $ | ( |
) | $ | – | $ | – | $ | $ | – | |||||||||||||||||||
Other debt securities |
– | – | – | – | – | – | – | |||||||||||||||||||||||||||||
– | – | ( |
) | – | – | – | ||||||||||||||||||||||||||||||
Non-trading financial assets at fair value through profit or loss |
||||||||||||||||||||||||||||||||||||
Securities |
( |
) | – | ( |
) | – | – | ( |
) | |||||||||||||||||||||||||||
Loans |
– | – | – | – | – | – | – | |||||||||||||||||||||||||||||
( |
) | – | ( |
) | – | – | ( |
) | ||||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||||||
Other debt securities |
– | ( |
) | – | ( |
) | – | – | ( |
) | ||||||||||||||||||||||||||
Equity securities |
– | ( |
) | – | – | |||||||||||||||||||||||||||||||
$ | $ | – | $ | $ | $ | ( |
) | $ | – | $ | – | $ | $ | |||||||||||||||||||||||
FINANCIAL LIABILITIES |
||||||||||||||||||||||||||||||||||||
Trading deposits 5 |
$ | ( |
) | $ | $ | – | $ | ( |
) | $ | ( |
) | $ | ( |
) | $ | $ | ( |
) | $ | ||||||||||||||||
Derivatives 6 |
||||||||||||||||||||||||||||||||||||
Interest rate contracts |
( |
) | ( |
) | – | – | ( |
) | – | ( |
) | – | ||||||||||||||||||||||||
Foreign exchange contracts |
( |
) | – | – | – | – | – | ( |
) | ( |
) | |||||||||||||||||||||||||
Equity contracts |
( |
) | ( |
) | – | – | – | ( |
) | ( |
) | |||||||||||||||||||||||||
Commodity contracts |
– | – | ( |
) | – | – | ||||||||||||||||||||||||||||||
( |
) | ( |
) | – | – | ( |
) | ( |
) | |||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
( |
) | ( |
) | – | ( |
) | – | – | ( |
) | ( |
) | |||||||||||||||||||||||
Obligations related to securities sold short |
– | – | – | – | – | – | – | – | – | |||||||||||||||||||||||||||
Fair value as at November 1 2021 |
Total realized and unrealized gains (losses) |
Movements | Transfers | Fair value as at April 30 2022 |
Change in unrealized gains (losses) on instruments still held 4 |
|||||||||||||||||||||||||||||||
Included in income |
1 |
Included in OCI |
2 |
Purchases/ Issuances |
Sales/ Settlements |
3 |
Into Level 3 |
Out of Level 3 |
||||||||||||||||||||||||||||
FINANCIAL ASSETS |
||||||||||||||||||||||||||||||||||||
Trading loans, securities, and other |
||||||||||||||||||||||||||||||||||||
Government and government-related securities |
$ | $ | – | $ | – | $ | $ | ( |
) | $ | $ | – | $ | $ | – | |||||||||||||||||||||
Other debt securities |
– | – | ( |
) | – | – | – | |||||||||||||||||||||||||||||
– | – | ( |
) | – | – | |||||||||||||||||||||||||||||||
Non-trading financial assets at fair value through profit or loss |
||||||||||||||||||||||||||||||||||||
Securities |
– | ( |
) | – | ( |
) | ( |
) | ||||||||||||||||||||||||||||
Loans |
– | – | – | – | – | – | – | |||||||||||||||||||||||||||||
– | ( |
) | – | ( |
) | ( |
) | |||||||||||||||||||||||||||||
Financial assets at fair value through other comprehensive income |
||||||||||||||||||||||||||||||||||||
Other debt securities |
– | ( |
) | – | ( |
) | – | – | ( |
) | ||||||||||||||||||||||||||
Equity securities |
– | – | – | |||||||||||||||||||||||||||||||||
$ | $ | – | $ | $ | $ | $ | – | $ | – | $ | $ | |||||||||||||||||||||||||
FINANCIAL LIABILITIES |
||||||||||||||||||||||||||||||||||||
Trading deposits 5 |
$ | ( |
) | $ | $ | – | $ | ( |
) | $ | – | $ | ( |
) | $ | $ | ( |
) | $ | |||||||||||||||||
Derivatives 6 |
||||||||||||||||||||||||||||||||||||
Interest rate contracts |
( |
) | ( |
) | – | – | – | – | ( |
) | ( |
) | ||||||||||||||||||||||||
Foreign exchange contracts |
( |
) | – | – | – | – | – | ( |
) | ( |
) | |||||||||||||||||||||||||
Equity contracts |
( |
) | ( |
) | – | – | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Commodity contracts |
– | – | ( |
) | – | – | ||||||||||||||||||||||||||||||
( |
) | ( |
) | – | – | ( |
) | ( |
) | |||||||||||||||||||||||||||
Financial liabilities designated at fair value through profit or loss |
( |
) | ( |
) | – | ( |
) | – | – | ( |
) | ( |
) | |||||||||||||||||||||||
Obligations related to securities sold short |
( |
) | – | – | – | – | – | – | – |
1 |
Gains/losses on financial assets and liabilities are recognized within Non-interest Income on the Interim Consolidated Statement of Income. |
2 |
Includes realized gains/losses transferred to retained earnings on disposal of equities designated at FVOCI. |
3 |
Includes foreign exchange. |
4 |
Changes in unrealized gains/losses on financial assets at FVOCI are recognized in AOCI. |
5 |
Issuances and repurchases of trading deposits are reported on a gross basis. |
6 |
Consists of derivative assets of $ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 61 |
Unrealized Gains (Losses) for Securities at Fair Value Through Other Comprehensive Income |
||||||||||||||||||||||||||||||||
(millions of Canadian dollars) | As at |
|||||||||||||||||||||||||||||||
April 30, 2023 |
October 31, 2022 | |||||||||||||||||||||||||||||||
Cost/ amortized cost 1 |
Gross unrealized gains |
Gross unrealized (losses) |
Fair value |
Cost/ amortized cost 1 |
Gross unrealized gains |
Gross unrealized (losses) |
Fair value |
|||||||||||||||||||||||||
Government and government-related securities |
||||||||||||||||||||||||||||||||
Canadian government debt |
||||||||||||||||||||||||||||||||
Federal |
$ |
$ |
$ |
( |
) |
$ |
$ | $ | $ | ( |
) | $ | ||||||||||||||||||||
Provinces |
( |
) |
( |
) | ||||||||||||||||||||||||||||
U.S. federal, state, municipal governments, and agencies debt |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Other OECD government-guaranteed debt |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Mortgage-backed securities |
– |
( |
) |
( |
) | |||||||||||||||||||||||||||
( |
) |
( |
) | |||||||||||||||||||||||||||||
Other debt securities |
||||||||||||||||||||||||||||||||
Asset-backed securities |
( |
) |
– | ( |
) | |||||||||||||||||||||||||||
Corporate and other debt |
( |
) |
( |
) | ||||||||||||||||||||||||||||
( |
) |
( |
) | |||||||||||||||||||||||||||||
Total debt securities |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Equity securities |
||||||||||||||||||||||||||||||||
Common shares |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Preferred shares |
( |
) |
( |
) | ||||||||||||||||||||||||||||
( |
) |
( |
) | |||||||||||||||||||||||||||||
Total securities at fair value through other comprehensive income |
$ |
$ |
$ |
( |
) |
$ |
$ | $ | $ | ( |
) | $ | |
1 |
Includes the foreign exchange translation of amortized cost balances at the period-end spot rate. |
Equity Securities Designated at Fair Value Through Other Comprehensive Income |
| |||||||||||||||||||||||
(millions of Canadian dollars) | As at |
For the three months ended |
For the six months ended |
|||||||||||||||||||||
April 30, 2023 |
October 31, 2022 | April 30, 2023 |
April 30, 2022 | April 30, 2023 |
April 30, 2022 | |||||||||||||||||||
Fair value |
Dividend income recognized |
Dividend income recognized |
||||||||||||||||||||||
Common shares |
$ |
$ | $ |
$ | $ |
$ | ||||||||||||||||||
Preferred shares |
||||||||||||||||||||||||
Total |
$ |
$ | $ |
$ | $ |
$ |
Debt Securities Net Realized Gains (Losses) |
| |||||||||||||||
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
|||||||||||||
Debt securities at amortized cost |
$ |
( |
) |
$ | $ |
( |
) |
$ | ||||||||
Debt securities at fair value through other comprehensive income |
||||||||||||||||
Total |
$ |
( |
) |
$ | $ |
( |
) |
$ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 62 |
(millions of Canadian dollars) |
As at |
|||||||||||||||||||||||||||||||
April 30, 2023 |
October 31, 2022 | |||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||||||||||||||
Debt securities 1 |
||||||||||||||||||||||||||||||||
Investment grade |
$ |
$ |
– |
$ |
n/a |
2 |
$ |
$ | $ | – | $ | n/a | $ | |||||||||||||||||||
Non-investment grade |
n/a |
n/a | ||||||||||||||||||||||||||||||
Watch and classified |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Default |
n/a |
n/a |
– |
– |
n/a | n/a | – | – | ||||||||||||||||||||||||
Total debt securities |
– |
– | ||||||||||||||||||||||||||||||
Allowance for credit losses on debt securities at amortized cost |
– |
– |
– | – | ||||||||||||||||||||||||||||
Total debt securities, net of allowance |
$ |
$ |
$ |
– |
$ |
$ | |
$ | $ | – | $ | |
1 |
Includes debt securities backed by government-guaranteed loans of $ Non-investment grade or a lower risk rating based on the issuer’s credit risk. |
2 |
Not applicable. |
(millions of Canadian dollars) |
As at |
|||||||
April 30, 2023 |
October 31, 2022 | |||||||
Residential mortgages |
$ |
$ | ||||||
Consumer instalment and other personal |
||||||||
Credit card |
||||||||
Business and government |
||||||||
Customers’ liability under acceptances |
||||||||
Loans at FVOCI (Note 4) |
||||||||
Total loans and acceptances |
||||||||
Total allowance for loan losses |
||||||||
Total loans and acceptances, net of allowance |
$ |
$ |
(millions of Canadian dollars) |
As at |
|||||||
April 30, 2023 |
October 31, 2022 | |||||||
Loans at amortized cost |
$ |
$ | ||||||
Customers’ liability under acceptances |
||||||||
Loans at FVOCI (Note 4) |
||||||||
Loans and acceptances |
||||||||
Allowance for loan and acceptances losses |
||||||||
Loans and acceptances, net of allowance |
$ |
$ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 63 |
(millions of Canadian dollars) |
As at |
|||||||||||||||||||||||||||||||
April 30, 2023 |
October 31, 2022 | |||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||||||||||||||
Residential mortgages 1,2,3 |
||||||||||||||||||||||||||||||||
Low Risk |
$ |
$ |
$ |
n/a |
$ |
$ | $ | $ | n/a | $ | ||||||||||||||||||||||
Normal Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
Medium Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
High Risk |
||||||||||||||||||||||||||||||||
Default |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Total loans |
||||||||||||||||||||||||||||||||
Allowance for loan losses |
||||||||||||||||||||||||||||||||
Loans, net of allowance |
||||||||||||||||||||||||||||||||
Consumer instalment and other personal 4 |
||||||||||||||||||||||||||||||||
Low Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
Normal Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
Medium Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
High Risk |
||||||||||||||||||||||||||||||||
Default |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Total loans |
||||||||||||||||||||||||||||||||
Allowance for loan losses |
||||||||||||||||||||||||||||||||
Loans, net of allowance |
||||||||||||||||||||||||||||||||
Credit card |
||||||||||||||||||||||||||||||||
Low Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
Normal Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
Medium Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
High Risk |
||||||||||||||||||||||||||||||||
Default |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Total loans |
||||||||||||||||||||||||||||||||
Allowance for loan losses |
||||||||||||||||||||||||||||||||
Loans, net of allowance |
||||||||||||||||||||||||||||||||
Business and government 1,2,3,5 |
||||||||||||||||||||||||||||||||
Investment grade or Low/Normal Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
Non-investment grade or Medium Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
Watch and classified or High Risk |
||||||||||||||||||||||||||||||||
Default |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Total loans and acceptances |
||||||||||||||||||||||||||||||||
Allowance for loan and acceptances losses |
||||||||||||||||||||||||||||||||
Loans and acceptances, net of allowance |
||||||||||||||||||||||||||||||||
Total loans and acceptances 6 |
||||||||||||||||||||||||||||||||
Total allowance for loan losses 6,7 |
||||||||||||||||||||||||||||||||
Total loans and acceptances, net of allowance 6 |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
1 |
Includes impaired loans with a balance of $ |
2 |
Excludes trading loans and non-trading loans at fair value through profit or loss (FVTPL) with a fair value of $ |
3 |
Includes insured mortgages of $ |
4 |
Includes Canadian government-insured real estate personal loans of $ |
5 |
Includes loans guaranteed by government agencies of $ Non-investment grade or a lower risk rating based on the borrowers’ credit risk. |
6 |
Stage 3 includes acquired credit-impaired (ACI) loans of $ |
7 |
Includes allowance for loan losses related to loans that are measured at FVOCI of |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 64 |
(millions of Canadian dollars) |
As at |
|||||||||||||||||||||||||||||||
April 30, 2023 |
October 31, 2022 | |||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
Total |
Stage 1 | Stage 2 | Stage 3 | Total | |||||||||||||||||||||||||
Retail Exposures 2 |
||||||||||||||||||||||||||||||||
Low Risk |
$ |
$ |
$ |
n/a |
$ |
$ | $ | $ | n/a | $ | ||||||||||||||||||||||
Normal Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
Medium Risk |
n/a |
n/a | ||||||||||||||||||||||||||||||
High Risk |
– |
– | ||||||||||||||||||||||||||||||
Default |
n/a |
n/a |
– |
– |
n/a | n/a | – | – | ||||||||||||||||||||||||
Non-Retail Exposures3 |
||||||||||||||||||||||||||||||||
Investment grade |
– |
n/a |
– | n/a | ||||||||||||||||||||||||||||
Non-investment grade |
n/a |
n/a | ||||||||||||||||||||||||||||||
Watch and classified |
– |
– | ||||||||||||||||||||||||||||||
Default |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Total off-balance sheet credit instruments |
||||||||||||||||||||||||||||||||
Allowance for off-balance sheet credit instruments |
||||||||||||||||||||||||||||||||
Total off-balance sheet credit instruments, net of allowance |
$ |
$ |
$ |
$ |
$ | $ | $ | |
$ |
1 |
Excludes mortgage commitments. |
2 |
Includes $ |
3 |
Includes $ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 65 |
(millions of Canadian dollars) | Balance at beginning of period |
Provision for credit losses |
Write-offs, net of recoveries |
Foreign exchange, disposals, and other adjustments |
Balance at end of period |
Balance at beginning of period |
Provision for credit losses |
Write-offs, net of recoveries |
Foreign exchange, disposals, and other adjustments |
Balance at end of period |
||||||||||||||||||||||||||||||
For the three months ended |
||||||||||||||||||||||||||||||||||||||||
April 30, 2023 |
April 30, 2022 | |||||||||||||||||||||||||||||||||||||||
Residential mortgages |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ | $ | $ | $ | $ | ||||||||||||||||||||||||||||
Consumer instalment and other personal |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||
Credit card |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||
Business and government |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Total allowance for loan losses, including off-balance sheet instruments |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||
Debt securities at amortized cost |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||||||||||||
Debt securities at FVOCI |
( |
) |
– |
– | – | |||||||||||||||||||||||||||||||||||
Total allowance for credit losses on debt securities |
( |
) |
– |
– | – | – | ||||||||||||||||||||||||||||||||||
Total allowance for credit losses |
$ |
$ |
$ |
( |
) |
$ |
$ |
$ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||||||
Comprising: |
||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans at amortized cost |
$ |
$ |
$ | $ | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans at FVOCI |
– |
– |
– | – | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses |
||||||||||||||||||||||||||||||||||||||||
Allowance for off-balance sheet instruments |
||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on debt securities |
||||||||||||||||||||||||||||||||||||||||
For the six months ended |
||||||||||||||||||||||||||||||||||||||||
April 30, 2023 |
April 30, 2022 | |||||||||||||||||||||||||||||||||||||||
Residential mortgages |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ | $ | ( |
) | $ | – | $ | $ | |||||||||||||||||||||||
Consumer instalment and other personal |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Credit card |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Business and government |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||||||||||||||
Total allowance for loan losses, including off-balance sheet instruments |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||
Debt securities at amortized cost |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||||||||||||
Debt securities at FVOCI |
( |
) |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||||||||||
Total allowance for credit losses on debt securities |
( |
) |
– |
( |
) | – | – | |||||||||||||||||||||||||||||||||
Total allowance for credit losses |
$ |
$ |
$ |
( |
) |
$ |
( |
) |
$ |
$ | $ | $ | ( |
) | $ | $ | ||||||||||||||||||||||||
Comprising: |
||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans at amortized cost |
$ |
$ |
$ | $ | ||||||||||||||||||||||||||||||||||||
Allowance for credit losses on loans at FVOCI |
– |
– |
– | – | ||||||||||||||||||||||||||||||||||||
Allowance for loan losses |
||||||||||||||||||||||||||||||||||||||||
Allowance for off-balance sheet instruments |
||||||||||||||||||||||||||||||||||||||||
Allowance for credit losses on debt securities |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 66 |
(millions of Canadian dollars) | For the three months ended |
|||||||||||||||||||||||||||||||
April 30, 2023 |
April 30, 2022 | |||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 1 |
Total |
Stage 1 | Stage 2 | Stage 3 1 |
Total | |||||||||||||||||||||||||
Residential Mortgages |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Transfer to Stage 1 2 |
( |
) |
– |
– |
( |
) | ( |
) | – | |||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
– |
– | ( |
) | – | |||||||||||||||||||||||
Net remeasurement due to transfers into stage 3 |
( |
) |
– |
( |
) | – | ( |
) | ||||||||||||||||||||||||
New originations or purchases 4 |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Net repayments 5 |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | – | ( |
) | |||||||||||||||||||
Derecognition of financial assets (excluding disposals and write-offs) 6 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes to risk, parameters, and models 7 |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Disposals |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– |
– |
– | – | ||||||||||||||||||||||||||
Foreign exchange and other adjustments |
– | |||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Consumer Instalment and Other Personal |
||||||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Transfer to Stage 1 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Net remeasurement due to transfers into stage 3 |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||||||
New originations or purchases 4 |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Net repayments 5 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Derecognition of financial assets (excluding 6 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes to risk, parameters, and models 7 |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Disposals |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other adjustments |
– | |||||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at end of period |
||||||||||||||||||||||||||||||||
Less: Allowance for off-balance sheet instruments8 |
– |
– | ||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Credit Card 9 |
||||||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Transfer to Stage 1 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Net remeasurement due to transfers into stage 3 |
( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||
New originations or purchases 4 |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Net repayments 5 |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Derecognition of financial assets (excluding 6 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes to risk, parameters, and models 7 |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Disposals |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other adjustments |
||||||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at end of period |
||||||||||||||||||||||||||||||||
Less: Allowance for off-balance sheet instruments8 |
– |
– | ||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
1 |
Includes allowance for loan losses related to ACI loans. |
2 |
Transfers represent stage transfer movements prior to ECL remeasurement. |
3 |
Represents the mechanical remeasurement between twelve-month (i.e., Stage 1) and lifetime ECLs (i.e., Stage 2 or 3) due to stage transfers necessitated by credit risk migration, as described in the “Significant Increase in Credit Risk” section of Note 2 and Note 3 of the Bank’s 2022 Annual Consolidated Financial Statements, holding all other factors impacting the change in ECLs constant. |
4 |
Represents the increase in the allowance resulting from loans that were newly originated, purchased, or renewed. |
5 |
Represents the changes in the allowance related to cash flow changes associated with new draws or repayments on loans outstanding. |
6 |
Represents the decrease in the allowance resulting from loans that were fully repaid and excludes the decrease associated with loans that were disposed or fully written off. |
7 |
Represents the changes in the allowance related to current period changes in risk (e.g., PD) caused by changes to macroeconomic factors, level of risk, parameters, and/or models, subsequent to stage migration. Refer to the “Measurement of Expected Credit Losses”, “Forward-Looking Information” and “Expert Credit Judgment” sections of Note 2 and Note 3 of the Bank’s 2022 Annual Consolidated Financial Statements for further details. |
8 |
The allowance for loan losses for off-balance sheet instruments is recorded in Other liabilities on the Interim Consolidated Balance Sheet. |
9 |
Credit cards are considered impaired and migrate to Stage 3 when they are 90 days past due and written off at 180 days past due. Refer to Note 2 of the Bank’s 2022 Annual Consolidated Financial Statements for further details. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 67 |
Allowance for Loan Losses by Stage |
||||||||||||||||||||||||||||||||
(millions of Canadian dollars) |
For the three months ended |
|||||||||||||||||||||||||||||||
April 30, 2023 |
April 30, 2022 |
|||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
1 |
Total |
Stage 1 | Stage 2 | Stage 3 | 1 |
Total | |||||||||||||||||||||||
Business and Government 2 |
||||||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Transfer to Stage 1 3 |
( |
) |
– |
– |
( |
) | – | – | ||||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
– |
– | ( |
) | – | |||||||||||||||||||||||
Net remeasurement due to transfers into stage 3 |
( |
) |
– |
( |
) |
( |
) | – | ( |
) | ||||||||||||||||||||||
New originations or purchases 3 |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Net repayments 3 |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Derecognition of financial assets (excluding disposals and write-offs) 3 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes to risk, parameters, and models 3 |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Disposals |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other adjustments |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at end of period |
||||||||||||||||||||||||||||||||
Less: Allowance for off-balance sheet instruments4 |
||||||||||||||||||||||||||||||||
Balance at end of period |
||||||||||||||||||||||||||||||||
Total Allowance, including off-balance sheet instruments, at end of period |
||||||||||||||||||||||||||||||||
Less: Total Allowance for off-balance sheet instruments4 |
||||||||||||||||||||||||||||||||
Total Allowance for Loan Losses at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
1 |
Includes allowance for loan losses related to ACI loans. |
2 |
Includes allowance for loan losses related to customers’ liability under acceptances. |
3 |
For explanations regarding this line item, refer to the “Allowance for Loan Losses by Stage” table on the previous page in this Note. |
4 |
The allowance for loan losses for off-balance sheet instruments is recorded in Other liabilities on the Interim Consolidated Balance Sheet. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 68 |
(millions of Canadian dollars) | For the six months ended |
|||||||||||||||||||||||||||||||
April 30, 2023 |
April 30, 2022 | |||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 1 |
Total |
Stage 1 | Stage 2 | Stage 3 1 |
Total | |||||||||||||||||||||||||
Residential Mortgages |
||||||||||||||||||||||||||||||||
Balance at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Transfer to Stage 1 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
– |
– | ( |
) | – | |||||||||||||||||||||||
Net remeasurement due to transfers into stage 3 |
( |
) |
– |
– |
( |
) | – | ( |
) | |||||||||||||||||||||||
New originations or purchases 4 |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Net repayments 5 |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | – | ( |
) | |||||||||||||||||||
Derecognition of financial assets (excluding 6 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes to risk, parameters, and models 7 |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Disposals |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other adjustments |
( |
) |
– |
– |
( |
) |
– | |||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Consumer Instalment and Other Personal |
||||||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Transfer to Stage 1 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Net remeasurement due to transfers into stage 3 |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||||||
New originations or purchases 4 |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Net repayments 5 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Derecognition of financial assets (excluding 6 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes to risk, parameters, and models 7 |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Disposals |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other adjustments |
( |
) |
( |
) |
( |
) |
( |
) |
||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at end of period |
||||||||||||||||||||||||||||||||
Less: Allowance for off-balance sheet instruments8 |
– |
– | ||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Credit Card 9 |
||||||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Transfer to Stage 1 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Net remeasurement due to transfers into stage 3 |
( |
) |
( |
) |
( |
) | ( |
) | ||||||||||||||||||||||||
New originations or purchases 4 |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Net repayments 5 |
( |
) | – | |||||||||||||||||||||||||||||
Derecognition of financial assets (excluding 6 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes to risk, parameters, and models 7 |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Disposals |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other adjustments |
( |
) |
( |
) |
– |
( |
) |
|||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at end of period |
||||||||||||||||||||||||||||||||
Less: Allowance for off-balance sheet instruments8 |
– |
– | ||||||||||||||||||||||||||||||
Balance at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ |
1 |
Includes allowance for loan losses related to ACI loans. |
2 |
Transfers represent stage transfer movements prior to ECL remeasurement. |
3 |
Represents the mechanical remeasurement between twelve-month (i.e., Stage 1) and lifetime ECLs (i.e., Stage 2 or 3) due to stage transfers necessitated by credit risk migration, as described in the “Significant Increase in Credit Risk” section of Note 2 and Note 3 of the Bank’s 2022 Annual Consolidated Financial Statements, holding all other factors impacting the change in ECLs constant. |
4 |
Represents the increase in the allowance resulting from loans that were newly originated, purchased, or renewed. |
5 |
Represents the changes in the allowance related to cash flow changes associated with new draws or repayments on loans outstanding. |
6 |
Represents the decrease in the allowance resulting from loans that were fully repaid and excludes the decrease associated with loans that were disposed or fully written off. |
7 |
Represents the changes in the allowance related to current period changes in risk (e.g., PD) caused by changes to macroeconomic factors, level of risk, parameters, and/or models, subsequent to stage migration. Refer to the “Measurement of Expected Credit Losses”, “Forward-Looking Information” and “Expert Credit Judgment” sections of Note 2 and Note 3 of the Bank’s 2022 Annual Consolidated Financial Statements for further details. |
8 |
The allowance for loan losses for off-balance sheet instruments is recorded in Other liabilities on the Interim Consolidated Balance Sheet. |
9 |
Credit cards are considered impaired and migrate to Stage 3 when they are 90 days past due and written off at 180 days past due. Refer to Note 2 of the Bank’s 2022 Annual Consolidated Financial Statements for further details. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 69 |
Allowance for Loan Losses by Stage |
||||||||||||||||||||||||||||||||
(millions of Canadian dollars) |
For the six months ended |
|||||||||||||||||||||||||||||||
April 30, 2023 |
April 30, 2022 |
|||||||||||||||||||||||||||||||
Stage 1 |
Stage 2 |
Stage 3 |
1 |
Total |
Stage 1 | Stage 2 | Stage 3 | 1 |
Total | |||||||||||||||||||||||
Business and Government 2 |
||||||||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at beginning of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | ||||||||||||||||||||||||
Provision for credit losses |
||||||||||||||||||||||||||||||||
Transfer to Stage 1 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 2 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Transfer to Stage 3 |
( |
) |
( |
) |
– |
( |
) | ( |
) | – | ||||||||||||||||||||||
Net remeasurement due to transfers into stage 3 |
( |
) |
– |
( |
) |
( |
) | – | ( |
) | ||||||||||||||||||||||
New originations or purchases 3 |
n/a |
n/a |
n/a | n/a | ||||||||||||||||||||||||||||
Net repayments 3 |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ||||||||||||||||||||
Derecognition of financial assets (excluding disposals and write-offs) 3 |
( |
) |
( |
) |
( |
) |
( |
) |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Changes to risk, parameters, and models 3 |
( |
) |
( |
) | ||||||||||||||||||||||||||||
Disposals |
– |
– |
– |
– |
– | – | – | – | ||||||||||||||||||||||||
Write-offs |
– |
– |
( |
) |
( |
) |
– | – | ( |
) | ( |
) | ||||||||||||||||||||
Recoveries |
– |
– |
– | – | ||||||||||||||||||||||||||||
Foreign exchange and other adjustments | ( |
) |
( |
) |
( |
) | ||||||||||||||||||||||||||
Balance, including off-balance sheet instruments, at end of period |
||||||||||||||||||||||||||||||||
Less: Allowance for off-balance sheet instruments4 |
||||||||||||||||||||||||||||||||
Balance at end of period | ||||||||||||||||||||||||||||||||
Total Allowance, including off-balance sheet instruments, at end of period |
||||||||||||||||||||||||||||||||
Less: Total Allowance for off-balance sheet instruments4 |
||||||||||||||||||||||||||||||||
Total Allowance for Loan Losses at end of period |
$ |
$ |
$ |
$ |
$ | $ | $ | $ | |
1 |
Includes allowance for loan losses related to ACI loans. |
2 |
Includes allowance for loan losses related to customers’ liability under acceptances. |
3 |
For explanations regarding this line item, refer to the “Allowance for Loan Losses by Stage” table on the previous page in this Note. |
4 |
The allowance for loan losses for off-balance sheet instruments is recorded in Other liabilities on the Interim Consolidated Balance Sheet. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 70 |
Macroeconomic Variables |
||||||||||||||||||||||||
As at |
||||||||||||||||||||||||
April 30, 2023 |
||||||||||||||||||||||||
Base Forecast |
Upside Scenario |
Downside Scenario |
||||||||||||||||||||||
Average Q2 2023- Q1 2024 1 |
Remaining 4-year period 1 |
Average Q2 2023- Q1 2024 1 |
Remaining 4-year period 1 |
Average Q2 2023- Q1 2024 1 |
Remaining 4-year period 1 |
|||||||||||||||||||
Unemployment rate |
||||||||||||||||||||||||
Canada |
% | % | % | % | % | % | ||||||||||||||||||
United States |
||||||||||||||||||||||||
Real GDP |
||||||||||||||||||||||||
Canada |
( |
) | ||||||||||||||||||||||
United States |
( |
) | ||||||||||||||||||||||
Home prices |
||||||||||||||||||||||||
Canada (average existing price) 2 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
United States (CoreLogic HPI) 3 |
( |
) | ( |
) | ( |
) | ||||||||||||||||||
Central bank policy interest rate |
||||||||||||||||||||||||
Canada |
||||||||||||||||||||||||
United States |
||||||||||||||||||||||||
U.S. 10-year treasury yield |
||||||||||||||||||||||||
U.S. 10-year BBB spread (%-pts) |
||||||||||||||||||||||||
Exchange rate (U.S. dollar/Canadian dollar) |
$ | $ | $ | $ | $ | $ |
1 | The numbers represent average values for the quoted periods, and average of year-on-year |
2 | The average home price is the average transacted sale price of homes sold via the Multiple Listing Service; data is collected by the Canadian Real Estate Association. |
3 | The CoreLogic home price index (HPI) is a repeat-sales index which tracks increases and decreases in the same home’s sales price over time. |
Change from Base to Probability-Weighted ECLs |
||||||||
(millions of Canadian dollars, except as noted) | As at |
|||||||
April 30, 2023 |
October 31, 2022 | |||||||
Probability-weighted ECLs |
$ |
$ | ||||||
Base ECLs |
||||||||
Difference – in amount |
$ |
$ | ||||||
Difference – in percentage |
% |
% |
Incremental Lifetime ECLs Impact |
||||||||
(millions of Canadian dollars) | As at |
|||||||
April 30, 2023 |
October 31, 2022 | |||||||
Probability-weighted ECLs |
$ |
$ | ||||||
All performing loans and off-balance sheet instruments using 12-month ECLs |
||||||||
Incremental lifetime ECLs impact |
$ |
$ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 71 |
Loans Past Due but not Impaired 1 |
||||||||||||||||||||||||
(millions of Canadian dollars) | As at |
|||||||||||||||||||||||
April 30, 2023 |
October 31, 2022 | |||||||||||||||||||||||
31-60 days |
61-89 days |
Total |
31-60 days |
61-89 days |
Total | |||||||||||||||||||
Residential mortgages |
$ |
$ |
$ |
$ | $ | $ | ||||||||||||||||||
Consumer instalment and other personal |
||||||||||||||||||||||||
Credit card |
||||||||||||||||||||||||
Business and government |
||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ | $ | $ |
1 |
Includes loans that are measured at FVOCI. |
Summarized Financial Information |
||||||||
(millions of Canadian dollars) |
As at |
|||||||
March 31 2023 |
September 30 2022 |
| ||||||
Total assets |
$ |
$ | ||||||
Total liabilities |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||
March 31 2023 |
March 31 2022 |
|
March 31 2023 |
March 31 2022 |
| |||||||||||
Total net revenues |
$ |
$ | $ |
$ | ||||||||||||
Total net income available to common stockholders |
||||||||||||||||
Total other comprehensive income (loss) |
( |
) | ( |
) | ||||||||||||
Total comprehensive income (loss) |
( |
) | ( |
) |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 72 |
Goodwill by Segment |
||||||||||||||||||||
(millions of Canadian dollars) | Canadian Personal and Commercial Banking |
U.S. Retail 1 |
Wealth Management and Insurance |
Wholesale Banking |
Total |
|||||||||||||||
Carrying amount of goodwill as at November 1, 2021 |
$ | $ | |
$ | $ | $ | |
|||||||||||||
Foreign currency translation adjustments and other |
||||||||||||||||||||
Carrying amount of goodwill as at October 31, 2022 2 |
$ | $ | $ | $ | $ | |||||||||||||||
Additions |
– | – | – | |||||||||||||||||
Foreign currency translation adjustments and other |
– | ( |
) | ( |
) | ( |
) | ( |
) | |||||||||||
Carrying amount of goodwill as at April 30, 2023 2 |
$ |
$ |
$ |
$ |
$ |
1 |
Goodwill predominantly relates to U.S. personal and commercial banking. |
2 |
Accumulated impairment as at April 30, 2023 and October 31, 2022 was |
Other Assets |
||||||||
(millions of Canadian dollars) | As at |
|||||||
April 30 2023 |
October 31 2022 |
|||||||
Accounts receivable and other items |
$ |
$ | ||||||
Accrued interest |
||||||||
Current income tax receivable |
||||||||
Defined benefit asset |
||||||||
Insurance-related assets, excluding investments |
||||||||
Prepaid expenses |
||||||||
Total |
$ |
$ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 73 |
(millions of Canadian dollars) | As at |
|||||||||||||||||||||||||||||||||||||||
By Type |
By Country |
April 30 2023 |
October 31 2022 |
|||||||||||||||||||||||||||||||||||||
Demand |
Notice |
Term 1 |
Canada |
United States |
International |
Total |
Total | |||||||||||||||||||||||||||||||||
Personal |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ | ||||||||||||||||||||||||||||||||
Banks |
||||||||||||||||||||||||||||||||||||||||
Business and government 2 |
||||||||||||||||||||||||||||||||||||||||
Trading | ||||||||||||||||||||||||||||||||||||||||
Designated at fair value through profit or loss 3 |
||||||||||||||||||||||||||||||||||||||||
Total |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||||||||||||||||
Non-interest-bearing deposits included above |
||||||||||||||||||||||||||||||||||||||||
In domestic offices |
$ |
$ |
||||||||||||||||||||||||||||||||||||||
In foreign offices |
||||||||||||||||||||||||||||||||||||||||
Interest-bearing deposits included above |
||||||||||||||||||||||||||||||||||||||||
In domestic offices |
||||||||||||||||||||||||||||||||||||||||
In foreign offices |
||||||||||||||||||||||||||||||||||||||||
U.S. federal funds deposited |
||||||||||||||||||||||||||||||||||||||||
Deposits and advances with the Federal Home Loan Bank |
||||||||||||||||||||||||||||||||||||||||
Total 2,4 |
$ |
$ | |
1 |
Includes $ “bail-in” regime. This regime provides certain statutory powers to the Canada Deposit Insurance Corporation, including the ability to convert specified eligible shares and liabilities into common shares in the event that the Bank becomes non-viable. |
2 |
Includes $ |
3 |
Financial liabilities designated at FVTPL on the Interim Consolidated Balance Sheet also includes $ |
4 |
Includes deposits of $ |
(millions of Canadian dollars) | As at |
|||||||
April 30 2023 |
October 31 2022 |
|||||||
Accounts payable, accrued expenses, and other items 1 |
$ |
$ |
||||||
Accrued interest |
||||||||
Accrued salaries and employee benefits |
||||||||
Cheques and other items in transit |
||||||||
Current income tax payable |
||||||||
Deferred tax liabilities |
||||||||
Defined benefit liability |
||||||||
Lease liabilities |
||||||||
Liabilities related to structured entities |
||||||||
Provisions (Note 18) |
||||||||
Total |
$ |
$ |
1 |
Includes dividends and distributions payable of $ |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 74 |
(millions of shares or other equity instruments and millions of Canadian dollars) |
For the three months ended |
For the six months ended |
||||||||||||||||||||||||||||||
April 30, 2023 |
April 30, 2022 | April 30, 2023 |
April 30, 2022 | |||||||||||||||||||||||||||||
Number of shares |
Amount |
Number of shares |
Amount |
Number of shares |
Amount |
Number of shares |
Amount |
|||||||||||||||||||||||||
Common Shares |
||||||||||||||||||||||||||||||||
Balance as at beginning of period |
$ |
$ | $ |
$ | ||||||||||||||||||||||||||||
Proceeds from shares issued on exercise of stock options |
||||||||||||||||||||||||||||||||
Shares issued as a result of dividend reinvestment plan |
||||||||||||||||||||||||||||||||
Purchase of shares for cancellation and other |
( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||
Balance as at end of period – common shares |
$ |
$ | $ |
$ | ||||||||||||||||||||||||||||
Preferred Shares and Other Equity Instruments |
||||||||||||||||||||||||||||||||
Preferred Shares – Class A |
||||||||||||||||||||||||||||||||
Balance as at beginning of period |
$ |
$ | $ |
$ | ||||||||||||||||||||||||||||
Issue of shares |
||||||||||||||||||||||||||||||||
Redemption of shares |
– | – | – | – | ||||||||||||||||||||||||||||
Balance as at end of period |
$ |
$ | $ |
$ | ||||||||||||||||||||||||||||
Other Equity Instruments 1 |
||||||||||||||||||||||||||||||||
Balance as at beginning and end of period |
$ |
$ | $ |
$ | ||||||||||||||||||||||||||||
Balance as at end of period – preferred shares and other equity instruments |
$ |
$ | $ |
$ | ||||||||||||||||||||||||||||
Treasury – common shares 2 |
||||||||||||||||||||||||||||||||
Balance as at beginning of period |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
$ | ( |
) | ||||||||||||||||||||
Purchase of shares |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||||||||||||||||||
Sale of shares |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||||||||||||||||||
Balance as at end of period – treasury – common shares |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
$ | ( |
) | ||||||||||||||||||||
Treasury – preferred shares and other equity instruments 2 |
||||||||||||||||||||||||||||||||
Balance as at beginning of period |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
$ | ( |
) | ||||||||||||||||||||
Purchase of shares and other equity instruments |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||||||||||||||||||
Sale of shares and other equity instruments |
( |
) |
( |
) | ( |
) |
( |
) | ||||||||||||||||||||||||
Balance as at end of period – treasury – preferred shares and other equity instruments |
$ |
( |
) |
$ | ( |
) | $ |
( |
) |
$ | ( |
) |
1 |
Consists of Limited Recourse Capital Notes (LRCNs). For LRCNs, the number of shares represents the number of notes issued. |
2 |
When the Bank purchases its own equity instruments as part of its trading business, they are classified as treasury instruments and the cost of these instruments is recorded as a reduction in equity. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 75 |
(in Canadian dollars, except as noted) | For the six months ended |
|||||||
April 30 2023 |
April 30 2022 |
|||||||
Risk-free interest rate |
% |
% | ||||||
Option contractual life |
||||||||
Expected volatility 1 |
% |
% | ||||||
Expected dividend yield |
% |
% | ||||||
Exercise price/share price |
$ |
$ |
1 |
Expected volatility is calculated based on the average daily volatility measured over a historical period. |
(millions of Canadian dollars) | Principal pension plans |
Principal post-retirement benefit plan |
Other pension plans 1 |
|||||||||||||||||||||
For the three months ended |
||||||||||||||||||||||||
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
|||||||||||||||||||
Service cost – benefits earned |
$ |
$ | $ |
$ | $ |
$ | ||||||||||||||||||
Net interest cost (income) on net defined benefit liability (asset) |
( |
) |
( |
) | ||||||||||||||||||||
Interest cost on asset limitation and minimum funding |
– | – | – | |||||||||||||||||||||
Defined benefit administrative expenses |
– | |||||||||||||||||||||||
Total |
$ |
$ | $ |
$ | $ |
$ | ||||||||||||||||||
For the six months ended |
||||||||||||||||||||||||
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
|||||||||||||||||||
Service cost – benefits earned |
$ |
$ | $ |
$ | $ |
$ | ||||||||||||||||||
Net interest cost (income) on net defined benefit liability (asset) |
( |
) |
( |
) | ||||||||||||||||||||
Interest cost on asset limitation and minimum funding |
– | – | – | |||||||||||||||||||||
Defined benefit administrative expenses |
– | |||||||||||||||||||||||
Total |
$ |
$ | $ |
$ | $ |
$ |
1 |
Includes Canada Trust defined benefit pension plan, TD Banknorth defined benefit pension plan, TD Auto Finance defined benefit pension plan, TD Insurance defined benefit pension plan, and supplemental executive defined benefit pension plans. |
(millions of Canadian dollars) | For the three months ended |
For the six months ended |
||||||||||||||
April 30 2023 |
April 30 2022 |
|
April 30 2023 |
April 30 2022 |
| |||||||||||
Defined contribution pension plans 1 |
$ |
$ | $ |
$ | ||||||||||||
Government pension plans 2 |
||||||||||||||||
Total |
$ |
$ | $ |
$ |
1 |
Includes defined contribution portion of the TD Pension Plan (Canada) and TD Bank, N.A. defined contribution 401(k) plan. |
2 |
Includes Canada Pension Plan, Quebec Pension Plan, and Social Security under the U.S. Federal Insurance Contributions Act |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 76 |
(millions of Canadian dollars) | Principal pension plans |
Principal post-retirement benefit plan |
||||||||||||||
For the three months ended |
||||||||||||||||
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
|||||||||||||
Remeasurement gain/(loss) – financial |
$ |
( |
) |
$ | $ |
( |
) |
$ | ||||||||
Remeasurement gain/(loss) – return on plan assets less interest income |
( |
) | – | |||||||||||||
Change in asset limitation and minimum funding requirement |
– | – | ||||||||||||||
Total |
$ |
( |
) |
$ | $ |
( |
) |
$ | ||||||||
For the six months ended |
||||||||||||||||
April 30 2023 |
April 30 2022 |
|
April 30 2023 |
April 30 2022 |
| |||||||||||
Remeasurement gain/(loss) – financial |
$ |
( |
) |
$ | $ |
( |
) |
$ | ||||||||
Remeasurement gain/(loss) – return on plan assets less interest income |
( |
) | – | |||||||||||||
Change in asset limitation and minimum funding requirement |
– | – | ||||||||||||||
Total |
$ |
$ | $ |
( |
) |
$ |
1 |
Excludes the Canada Trust defined benefit pension plan, TD Banknorth defined benefit pension plan, TD Auto Finance defined benefit pension plan, TD Insurance defined benefit pension plan, supplemental executive retirement plans, and other employee defined benefit plans operated by the Bank and certain of its subsidiaries not considered material for disclosure purposes as these plans are not remeasured on a quarterly basis. |
2 |
Changes in discount rates and return on plan assets are reviewed and updated on a quarterly basis. All other assumptions are updated annually. |
3 |
Amounts are presented on a pre-tax basis. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 77 |
Basic and Diluted Earnings Per Share |
||||||||||||||||
(millions of Canadian dollars, except as noted) | For the three months ended |
For the six months ended |
||||||||||||||
April 30 2023 |
April 30 2022 |
April 30 2023 |
April 30 2022 |
|||||||||||||
Basic earnings per share |
||||||||||||||||
Net income attributable to common shareholders |
$ |
$ | $ |
$ | ||||||||||||
Weighted-average number of common shares outstanding (millions) |
||||||||||||||||
Basic earnings per share |
$ |
$ | $ |
$ | ||||||||||||
Diluted earnings per share |
||||||||||||||||
Net income attributable to common shareholders |
$ |
$ | $ |
$ | ||||||||||||
Net income available to common shareholders including impact of dilutive securities |
||||||||||||||||
Weighted-average number of common shares outstanding (millions) |
||||||||||||||||
Effect of dilutive securities |
||||||||||||||||
Stock options potentially exercisable (millions) 1 |
||||||||||||||||
Weighted-average number of common shares outstanding – diluted (millions) |
|
|||||||||||||||
Diluted earnings per share 1 |
$ |
$ | $ |
$ |
1 |
For the three and six months ended April 30, 2023, the computation of diluted earnings per share excluded average options outstanding of |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 78 |
(millions of Canadian dollars) | Canadian Personal and Commercial Banking |
U.S. Retail |
Wealth Management and Insurance |
Wholesale Banking 2 |
Corporate 2 |
Total |
||||||||||||||||||||||||||||||||||||||||||
For the three months ended April 30 |
||||||||||||||||||||||||||||||||||||||||||||||||
2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | |||||||||||||||||||||||||||||||||||||
Net interest income (loss) |
$ |
$ | $ |
$ | $ |
$ | $ |
$ | $ |
$ | $ |
$ | ||||||||||||||||||||||||||||||||||||
Non-interest income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Total revenue |
||||||||||||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) credit losses |
( |
) | – | ( |
) | ( |
) | |||||||||||||||||||||||||||||||||||||||||
Insurance claims and related expenses |
– | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and share of net income from investment in Schwab |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) income taxes |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Share of net income from investment in Schwab 3,4 |
– | – | – | ( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ |
$ | $ |
$ | $ |
$ | $ |
$ | $ |
( |
) | $ | ( |
) | $ |
$ | ||||||||||||||||||||||||||||||||
For the six months ended April 30 |
||||||||||||||||||||||||||||||||||||||||||||||||
2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | 2023 |
2022 | |||||||||||||||||||||||||||||||||||||
Net interest income (loss) |
$ |
$ | $ |
$ | $ |
$ | $ |
$ | $ |
$ | $ |
$ | ||||||||||||||||||||||||||||||||||||
Non-interest income (loss) |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Total revenue |
( |
) |
||||||||||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) credit losses |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||||
Insurance claims and related expenses |
– | – | – | – | ||||||||||||||||||||||||||||||||||||||||||||
Non-interest expenses |
||||||||||||||||||||||||||||||||||||||||||||||||
Income (loss) before income taxes and share of net income from investment in Schwab |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Provision for (recovery of) income taxes |
( |
) |
( |
) | ||||||||||||||||||||||||||||||||||||||||||||
Share of net income from investment in Schwab 3,4 |
– | – | – | ( |
) |
( |
) | |||||||||||||||||||||||||||||||||||||||||
Net income (loss) |
$ |
$ | $ |
$ | $ |
$ | $ |
$ | $ |
( |
) |
$ | ( |
) | $ |
$ |
1 |
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. |
2 |
Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB). The TEB adjustment reflected in Wholesale Banking is reversed in the Corporate segment. |
3 |
The after-tax amounts for amortization of acquired intangibles and the Bank’s share of acquisition and integration charges associated with Schwab’s acquisition of TD Ameritrade are recorded in the Corporate segment. |
4 |
The Bank’s share of Schwab’s earnings is reported with a one-month lag. Refer to Note 7 for further details. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 79 |
(millions of Canadian dollars) | Canadian Personal and Commercial Banking |
U.S. Retail |
Wealth Management and Insurance |
Wholesale Banking |
Corporate |
Total |
||||||||||||||||||
As at April 30, 2023 |
||||||||||||||||||||||||
Total assets |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
As at October 31, 2022 |
||||||||||||||||||||||||
Total assets |
$ | $ | $ | $ | $ | $ |
(millions of Canadian dollars) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
Measured at amortized cost 1 |
$ |
$ | $ |
$ | ||||||||||||
Measured at FVOCI – Debt instruments 1 |
||||||||||||||||
Measured or designated at FVTPL |
||||||||||||||||
Measured at FVOCI – Equity instruments |
||||||||||||||||
Total |
$ |
$ | $ |
$ |
1 |
Interest income is calculated using EIRM. |
(millions of Canadian dollars) |
For the three months ended |
For the six months ended |
||||||||||||||
April 30, 2023 |
April 30, 2022 |
April 30, 2023 |
April 30, 2022 |
|||||||||||||
Measured at amortized cost 1 |
$ |
$ | $ |
$ | ||||||||||||
Measured or designated at FVTPL |
||||||||||||||||
Total |
$ |
$ | $ |
$ |
1 |
Interest expense is calculated using EIRM. |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 80 |
(millions of Canadian dollars, except as noted) |
As at |
|||||||
April 30 2023 |
October 31 2022 |
|||||||
Capital |
||||||||
Common Equity Tier 1 Capital |
$ |
$ | ||||||
Tier 1 Capital |
||||||||
Total Capital |
||||||||
Risk-weighted assets used in the calculation of capital ratios |
||||||||
Capital and leverage ratios |
||||||||
Common Equity Tier 1 Capital ratio |
% |
% | ||||||
Tier 1 Capital ratio |
||||||||
Total Capital ratio |
||||||||
Leverage ratio |
||||||||
TLAC Ratio |
||||||||
TLAC Leverage Ratio |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
Page 81 |
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 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 |
TD BANK GROUP • SECOND QUARTER 2023 • REPORT TO SHAREHOLDERS |
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