TORONTO, July 17,
2024 /CNW/ - TD Bank Group (the "Bank") announced
today that it expects The Charles Schwab Corporation's ("Schwab")
second quarter earnings to translate into approximately
CDN $190 million of reported equity in net income of an
investment in Schwab for the Bank's fiscal 2024 third quarter.
Excluding acquisition-related charges of approximately CDN $5
million after-tax and amortization of acquired intangibles of
approximately CDN $30 million
after-tax, adjusted equity in net income of an investment in Schwab
will be approximately CDN $225
million.
TD Bank Group will release its third quarter financial results
and host an earnings conference call on August 22, 2024. Conference call and audio
webcast details will be announced closer to that date.
Caution Regarding Use of Non-GAAP Information
The
Bank's financial results are prepared in accordance with
International Financial Reporting Standards (IFRS), the current
generally accepted accounting principles (GAAP). The Bank refers to
results prepared in accordance with IFRS as "reported" results. The
Bank also utilizes non-GAAP financial measures referred to as
"adjusted" results to assess each of its businesses and to measure
overall Bank performance. To arrive at adjusted results, the Bank
removes "items of note", from reported results. The items of note
relate to items which management does not believe are indicative of
underlying business performance. The Bank believes that adjusted
results provide the reader with a better understanding of how
management views the Bank's performance. As explained, adjusted
results are different from reported results determined in
accordance with IFRS. Adjusted results, items of note, and related
terms used herein are not defined terms under IFRS and, therefore,
may not be comparable to similar terms used by other issuers.
Please refer to the "Financial Results Overview – How the Bank
Reports" section of the Bank's 2023 Management's Discussion and
Analysis ("2023 MD&A"), as may be updated in subsequently filed
quarterly reports to shareholders, for a reconciliation between the
Bank's reported and adjusted results.
Caution Regarding Forward-Looking Statements
From time to time, the Bank (as defined in this document) makes
written and/or oral forward-looking statements, including in this
document, in other filings with Canadian regulators or the United States (U.S.) Securities and
Exchange Commission (SEC), and in other communications. In
addition, representatives of the Bank may make forward-looking
statements orally to analysts, investors, the media and others. All
such statements are made pursuant to the "safe harbour" provisions
of, and are intended to be forward-looking statements under,
applicable Canadian and U.S. securities legislation, including the
U.S. Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, but are not limited to,
statements made in this document, the 2023 MD&A in the Bank's
2023 Annual Report under the heading "Economic Summary and
Outlook", under the headings "Key Priorities for 2024" and
"Operating Environment and Outlook" for the Canadian Personal and
Commercial Banking, U.S. Retail, Wealth Management and Insurance,
and Wholesale Banking segments, and under the heading "2023
Accomplishments and Focus for 2024" for the Corporate segment, and
in other statements regarding the Bank's objectives and priorities
for 2024 and beyond and strategies to achieve them, the regulatory
environment in which the Bank operates, and the Bank's anticipated
financial performance. Forward-looking statements can be identified
by words such as "anticipate", "believe", "could", "estimate",
"expect", "forecast", "goal", "intend", "may", "outlook", "plan",
"possible", "potential", "predict", "project", "should", "target",
"will", and "would" and similar expressions or variations thereof,
or the negative thereof, but these terms are not the exclusive
means of identifying such statements.
By their very nature, these forward-looking statements require
the Bank to make assumptions and are subject to inherent risks and
uncertainties, general and specific. Especially in light of the
uncertainty related to the physical, financial, economic,
political, and regulatory environments, such risks and
uncertainties – many of which are beyond the Bank's control and the
effects of which can be difficult to predict – may cause actual
results to differ materially from the expectations expressed in the
forward-looking statements. Risk factors that could cause,
individually or in the aggregate, such differences include:
strategic, credit, market (including equity, commodity, foreign
exchange, interest rate, and credit spreads), operational
(including technology, cyber security, and infrastructure), model,
insurance, liquidity, capital adequacy, legal, regulatory
compliance and conduct, reputational, environmental and social, and
other risks. Examples of such risk factors include general business
and economic conditions in the regions in which the Bank operates;
geopolitical risk; inflation, rising rates and recession;
regulatory oversight and compliance risk; the ability of the Bank
to execute on long-term strategies, shorter-term key strategic
priorities, including the successful completion of acquisitions and
dispositions and integration of acquisitions, the ability of the
Bank to achieve its financial or strategic objectives with respect
to its investments, business retention plans, and other strategic
plans; technology and cyber security risk (including cyber-attacks,
data security breaches or technology failures) on the Bank's
technologies, systems and networks, those of the Bank's customers
(including their own devices), and third parties providing services
to the Bank; model risk; fraud activity; insider
risk; the failure of third parties to comply with their obligations
to the Bank or its affiliates, including relating to the care and
control of information, and other risks arising from the Bank's use
of third parties; the impact of new and changes to, or application
of, current laws, rules and regulations, including without
limitation tax laws, capital guidelines and liquidity regulatory
guidance; ; increased competition from incumbents and new entrants
(including Fintechs and big technology competitors); shifts in
consumer attitudes and disruptive technology; environmental and
social risk (including climate change); exposure related to
significant litigation and regulatory matters; ability of the Bank
to attract, develop, and retain key talent; changes to the Bank's
credit ratings; changes in foreign exchange rates, interest rates,
credit spreads and equity prices; the interconnectivity of
Financial Institutions including existing and potential
international debt crises; increased funding costs and market
volatility due to market illiquidity and competition for funding;
Interbank Offered Rate (IBOR) transition risk; critical accounting
estimates and changes to accounting standards, policies, and
methods used by the Bank; the economic, financial, and other
impacts of pandemics; and the occurrence of natural and unnatural
catastrophic events and claims resulting from such events. The Bank
cautions that the preceding list is not exhaustive of all possible
risk factors and other factors could also adversely affect the
Bank's results. For more detailed information, please refer to the
"Risk Factors and Management" section of the 2023 MD&A, as may
be updated in subsequently filed quarterly reports to shareholders
and news releases (as applicable) related to any events or
transactions discussed under the heading "Significant Events" in
the relevant MD&A, which applicable releases may be found on
www.td.com. All such factors, as well as other uncertainties and
potential events, and the inherent uncertainty of forward-looking
statements, should be considered carefully when making decisions
with respect to the Bank. The Bank cautions readers not to place
undue reliance on the Bank's forward-looking statements.
Material economic assumptions underlying the forward-looking
statements contained in this document are set out in the 2023
MD&A under the heading "Economic Summary and Outlook", under
the headings "Key Priorities for 2024" and "Operating Environment
and Outlook" for the Canadian Personal and Commercial
Banking, U.S. Retail, Wealth Management and Insurance, and
Wholesale Banking segments, and under the heading "2023
Accomplishments and Focus for 2024" for the Corporate segment, each
as may be updated in subsequently filed quarterly reports to
shareholders.
Any forward-looking statements contained in this document
represent the views of management only as of the date hereof and
are presented for the purpose of assisting the Bank's shareholders
and analysts in understanding the Bank's financial position,
objectives and priorities and anticipated financial performance as
at and for the periods ended on the dates presented and may not be
appropriate for other purposes. The Bank does not undertake to
update any forward-looking statements, whether written or oral,
that may be made from time to time by or on its behalf, except as
required under applicable law.
About TD Bank Group
The Toronto-Dominion Bank and its subsidiaries are collectively
known as TD Bank Group ("TD" or the "Bank"). TD is the sixth
largest bank in North America by
assets and serves over 27.5 million customers in four key
businesses operating in a number of locations in financial centres
around the globe: Canadian Personal and Commercial Banking,
including TD Canada Trust and TD Auto Finance Canada; U.S. Retail,
including TD Bank, America's Most Convenient Bank®, TD
Auto Finance U.S., TD Wealth (U.S.), and an investment in The
Charles Schwab Corporation; Wealth Management and Insurance,
including TD Wealth (Canada), TD
Direct Investing, and TD Insurance; and Wholesale Banking,
including TD Securities and TD Cowen. TD also ranks among the
world's leading online financial services firms, with more than 17
million active online and mobile customers. TD had $1.97 trillion in assets on April 30, 2024. The Toronto-Dominion Bank trades
under the symbol "TD" on the Toronto and New York Stock Exchanges.
SOURCE TD Bank Group