This quarterly
earnings news release should be read in conjunction with the Bank's
unaudited fourth quarter 2021 consolidated financial results for
the year ended October 31, 2021, included in this Earnings News
Release and the audited 2021 Consolidated Financial Statements,
prepared in accordance with International Financial Reporting
Standards (IFRS) as issued by the International Accounting
Standards Board (IASB), which is available on TD's website at
http://www.td.com/investor/. This analysis is dated December 1,
2021. Unless otherwise indicated, all amounts are expressed in
Canadian dollars, and have been primarily derived from the Bank's
Annual or Interim Consolidated Financial Statements prepared in
accordance with IFRS. Certain comparative amounts have been revised
to conform to the presentation adopted in the current period.
Additional information including the 2021 MD&A relating to the
Bank is available on the Bank's website at http://www.td.com, as
well as on SEDAR at http://www.sedar.com and on the U.S. Securities
and Exchange Commission's (SEC) website at http://www.sec.gov
(EDGAR filers section).
Reported results conform to generally accepted accounting
principles (GAAP), in accordance with IFRS. Adjusted results are
non-GAAP financial measures. For additional information about the
Bank's use of non-GAAP financial measures, refer to "Non-GAAP and
Other Financial Measures" in the "How We Performed" section of this
document.
|
FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth
quarter last year:
- Reported diluted earnings per share were $2.04, compared with $2.80.
- Adjusted diluted earnings per share were $2.09, compared with $1.60.
- Reported net income was $3,781
million, compared with $5,143
million.
- Adjusted net income was $3,866
million, compared with $2,970
million.
FULL YEAR FINANCIAL HIGHLIGHTS, compared with last
year:
- Reported diluted earnings per share were $7.72, compared with $6.43.
- Adjusted diluted earnings per share were $7.91, compared with $5.36.
- Reported net income was $14,298
million, compared with $11,895
million.
- Adjusted net income was $14,649
million, compared with $9,968
million.
FOURTH QUARTER ADJUSTMENTS (ITEMS OF NOTE)
The
fourth quarter reported earnings figures included the following
items of note:
- Amortization of intangibles of $74
million ($65 million after tax
or 4 cents per share), compared with
$61 million ($53 million after tax or 3
cents per share) in the fourth quarter last year.
- Acquisition and integration charges related to the Schwab
transaction of $22 million
($20 million after-tax or
1 cent per share).
TORONTO, Dec. 2, 2021 /CNW/ - TD Bank Group ("TD" or the
"Bank") today announced its financial results for the fourth
quarter ended October 31, 2021. Reported earnings were
$3.8 billion, down 26% compared with
the fourth quarter last year, primarily reflecting a net gain on
the sale of the Bank's investment in TD Ameritrade. Adjusted
earnings were $3.9 billion, up
30%.
"In 2021, we demonstrated the value of our diversified business
model, delivering continued growth and shareholder returns while
supporting millions of households and businesses through a second
year of COVID-19-related disruption and uncertainty," said Bharat
Masrani, Group President and CEO, TD Bank Group. "Forward-focused
investments in new capabilities and innovation drove higher loan
and deposit volumes in our retail businesses, increased revenues in
Wealth and Insurance, and strong results in our Wholesale business
in the fourth quarter of 2021. We ended the year in a position of
strength, with a growing base of customers across highly
competitive and diversified businesses and a robust capital
position, enabling us to increase our dividend and providing us
with a strong foundation upon which to continue building our
business in 2022."
The Bank announced a dividend increase of ten cents per common share for the quarter ended
January 31, 2022, an increase of
13%.
Canadian Retail saw momentum in loan and deposit volumes
and wealth assets
Canadian Retail reported net income
was $2,137 million, an increase of
19% compared with the fourth quarter last year. The increase in
earnings reflects higher revenue and lower provisions for credit
losses (PCL), partially offset by higher non-interest expenses.
Revenue increased 8%, reflecting strong other income growth across
all businesses, as well as strength in commercial loans, credit
card sales and mortgage originations. Expenses rose 8% on increased
spend to support business growth, including higher variable
compensation, primarily in the Wealth business, and investments in
technology. PCL decreased by $198
million from the fourth quarter last year, reflecting lower
impaired and performing PCL, including a performing PCL recovery
this year.
Canadian Retail finished the year with strong momentum,
reporting record volumes in almost every business, supported by
accelerated investments in products and services to help customers
feel more confident about their financial decisions. The Personal
Bank extended its lead in deposits and implemented additional tools
and resources to provide better advice to customers as they
consider mortgage refinancing and creditor protection options.
TD Wealth achieved record growth in net assets and mutual fund
net sales and made further enhancements to its direct investing
capabilities, adding features to the GoalAssist app and launching
the TD Direct Investing Index, a first-of-its-kind snapshot into
market trends.
Record U.S. Retail results supported by consistent strong
credit performance and sustained consumer recovery
U.S.
Retail net income was $1,374 million
(US$1,092 million), an increase of
58% compared with the fourth quarter last year. The Bank's
investment in The Charles Schwab Corporation (Schwab) contributed
$246 million (US$195 million) in earnings, compared with the
contribution of $339 million
(US$255 million) from TD Ameritrade a
year ago.
The U.S. Retail Bank, which excludes the Bank's investment in
Schwab, reported net income of $1,128
million (US$897 million), an
increase of 112% (123% in U.S. dollars) from the fourth
quarter last year, primarily reflecting lower PCL and higher
revenue. Revenue increased 2% (8% in U.S. dollars), reflecting
growth in consumer loans and accelerated fee amortization as the
U.S. Retail Bank helped small business customers obtain forgiveness
for approximately 36,500 (US$3.2 billion) Paycheck Protection Program
(PPP) loans. PCL was a recovery of $76
million (US$62 million), lower
by $648 million (US$495 million) from the same quarter last year,
reflecting lower impaired and performing PCL, including a
performing PCL recovery this year. Expenses were up 3% in U.S.
dollars, reflecting continued investments in the business and
higher incentive-based compensation. In Canadian dollars, expenses
were down 3%, reflecting appreciation of the Canadian dollar.
The U.S. Retail Bank continued to deliver innovative solutions
to enhance the customer experience and meet the growing need for
individualized financial advice and investment solutions. TD Bank,
America's Most Convenient Bank® (TD AMCB) announced an
expanded collaboration with Autobooks to add invoicing to TD
Business Simple Checking, making it easier for small and micro
businesses to create and send digital invoices, and launched the
Bank's first robo-advisor and hybrid advisor capabilities, TD
Automated Investing and TD Automated Investing Plus. The U.S.
Retail Bank was proud that TD AMCB ranked first in the J.D. Power
2021 Small Business Banking Satisfaction Study in the South Region
for the third time, and in U.S. Small Business Administration
lending in its Maine-to-Florida footprint for the fifth consecutive
year. TD Auto Finance also took the top spot in the Non-Captive
National Bank – Prime Category of the J.D. Power 2021 Dealer
Finance Satisfaction Study for the second consecutive year.
Strong Wholesale Banking performance in
Q4
Wholesale Banking reported net income of $420
million this quarter, a decrease of 14% compared to a
very strong fourth quarter last year, reflecting lower revenue and
higher non-interest expenses, partially offset by lower PCL.
Revenue for the quarter was $1,150 million, a decrease of 8%
from last year's elevated levels, primarily reflecting lower
trading-related revenue, partially offset by higher lending
revenue, advisory fees and equity underwriting. PCL for the quarter
was a recovery of $77 million,
compared with a recovery of $6
million in the fourth quarter last year, primarily
reflecting a performing PCL recovery this quarter.
The Wholesale Bank was proud to deliver record performance in
2021 as it continued to execute its strategy to build trust and
deliver integrated advice and solutions to clients with the goal of
long-term shared success. Continuing to show leadership in the ESG
space and supporting the transition to a low carbon economy, TD
Securities was the only Canadian dealer among five Joint Lead
Managers on the European Union's first NextGenerationEU Green Bond,
the world's largest ever green bond issuance.
Capital
TD's Common Equity Tier 1 Capital ratio was
15.2%1.
Conclusion
"We are hopeful that recent progress to end
the human and economic impacts of the COVID-19 pandemic will
continue well into 2022. As we look ahead, we know that there is
still much more to do as we rebuild our economies and tackle the
complex challenges we face as a society to create a more
sustainable and inclusive future for all. We have committed our
know-how and resources to help drive progress," added Masrani.
"I am proud of our achievements in 2021 and of the progress we
have made, and I am most proud of our 90,000 colleagues around the
world, who showed tremendous commitment and resilience over this
past year. I am confident in TD's future because of the confidence
I have in them," concluded Masrani.
The foregoing contains forward-looking statements. Please
refer to the "Caution Regarding Forward-Looking
Statements".
_______________________________
|
1 This
measure has been included in this document in accordance with
OSFI's Capital Adequacy Requirements guideline.
|
Caution
Regarding Forward-Looking Statements
From time to time, the Bank (as defined in this document) makes
written and/or oral forward-looking statements, including in this
document, in other filings with Canadian regulators or the United
States (U.S.) Securities and Exchange Commission (SEC), and in
other communications. In addition, representatives of the Bank may
make forward-looking statements orally to analysts, investors, the
media and others. All such statements are made pursuant to the
"safe harbour" provisions of, and are intended to be
forward-looking statements under, applicable Canadian and U.S.
securities legislation, including the U.S. Private Securities
Litigation Reform Act of 1995. Forward-looking statements include,
but are not limited to, statements made in this document, the
Management's Discussion and Analysis ("2021 MD&A") in the
Bank's 2021 Annual Report under the headings "Economic Summary and
Outlook" and "The Bank's Response to COVID-19", under the headings
"Key Priorities for 2022" and "Operating Environment and Outlook"
for the Canadian Retail, U.S. Retail, and Wholesale Banking
segments, and under the heading "Focus for 2022" for the Corporate
segment, and in other statements regarding the Bank's objectives
and priorities for 2022 and beyond and strategies to achieve them,
the regulatory environment in which the Bank operates, the Bank's
anticipated financial performance, and the potential economic,
financial and other impacts of the Coronavirus Disease 2019
(COVID-19). Forward-looking statements are typically identified by
words such as "will", "would", "should", "believe", "expect",
"anticipate", "intend", "estimate", "plan", "goal", "target",
"may", and "could".
By their very nature, these forward-looking statements require the
Bank to make assumptions and are subject to inherent risks and
uncertainties, general and specific. Especially in light of the
uncertainty related to the physical, financial, economic,
political, and regulatory environments, such risks and
uncertainties – many of which are beyond the Bank's control and the
effects of which can be difficult to predict – may cause actual
results to differ materially from the expectations expressed in the
forward-looking statements. Risk factors that could cause,
individually or in the aggregate, such differences include:
strategic, credit, market (including equity, commodity, foreign
exchange, interest rate, and credit spreads), operational
(including technology, cyber security, and infrastructure), model,
insurance, liquidity, capital adequacy, legal, regulatory
compliance and conduct, reputational, environmental and social, and
other risks. Examples of such risk factors include the economic,
financial, and other impacts of pandemics, including the COVID-19
pandemic; general business and economic conditions in the regions
in which the Bank operates; geopolitical risk; the ability of the
Bank to execute on long-term strategies and shorter-term key
strategic priorities, including the successful completion of
acquisitions and dispositions, business retention plans, and
strategic plans; technology and cyber security risk (including
cyber-attacks or data security breaches) on the Bank's information
technology, internet, network access or other voice or data
communications systems or services; model risk; fraud activity; the
failure of third parties to comply with their obligations to the
Bank or its affiliates, including relating to the care and control
of information, and other risks arising from the Bank's use of
third-party service providers; the impact of new and changes to, or
application of, current laws and regulations, including without
limitation tax laws, capital guidelines and liquidity regulatory
guidance and the bank recapitalization "bail-in" regime; regulatory
oversight and compliance risk; increased competition from
incumbents and new entrants (including Fintechs and big technology
competitors); shifts in consumer attitudes and disruptive
technology; exposure related to significant litigation and
regulatory matters; ability of the Bank to attract, develop, and
retain key talent; changes to the Bank's credit ratings; changes in
currency and interest rates (including the possibility of negative
interest rates); increased funding costs and market volatility due
to market illiquidity and competition for funding; Interbank
Offered Rate (IBOR) transition risk; critical accounting estimates
and changes to accounting standards, policies, and methods used by
the Bank; existing and potential international debt crises;
environmental and social risk (including climate change); 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 2021 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 Acquisitions" or
"Significant and Subsequent Events and Pending Acquisitions" in the
relevant MD&A, which applicable releases may be found on
www.td.com. All such factors, as well as other uncertainties and
potential events, and the inherent uncertainty of forward-looking
statements, should be considered carefully when making decisions
with respect to the Bank. 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 2021
MD&A under the headings "Economic Summary and Outlook" and "The
Bank's Response to COVID-19", under the headings "Key Priorities
for 2022" and "Operating Environment and Outlook" for the Canadian
Retail, U.S. Retail, and Wholesale Banking segments, and under the
heading "Focus for 2022" for the Corporate segment, each as may be
updated in subsequently filed quarterly reports to
shareholders.
Any forward-looking statements contained in this document represent
the views of management only as of the date hereof and are
presented for the purpose of assisting the Bank's shareholders and
analysts in understanding the Bank's financial position, objectives
and priorities and anticipated financial performance as at and for
the periods ended on the dates presented, and may not be
appropriate for other purposes. The Bank does not undertake to
update any forward-looking statements, whether written or oral,
that may be made from time to time by or on its behalf, except as
required under applicable securities legislation.
|
This document was reviewed by the Bank's Audit Committee and
was approved by the Bank's Board of Directors, on the Audit
Committee's recommendation, prior to its release.
TABLE 1: FINANCIAL
HIGHLIGHTS
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
As at or for the
three months ended
|
|
As at or for the
twelve months ended
|
|
|
|
October
31
|
|
|
July 31
|
|
|
October 31
|
|
|
October
31
|
|
|
October 31
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Results of
operations
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total revenue –
reported
|
$
|
10,941
|
|
$
|
10,712
|
|
$
|
11,844
|
|
$
|
42,693
|
|
$
|
43,646
|
|
Total revenue –
adjusted1
|
|
10,941
|
|
|
10,712
|
|
|
10,423
|
|
|
42,693
|
|
|
42,225
|
|
Provision for
(recovery of) credit losses
|
|
(123)
|
|
|
(37)
|
|
|
917
|
|
|
(224)
|
|
|
7,242
|
|
Insurance claims and
related expenses
|
|
650
|
|
|
836
|
|
|
630
|
|
|
2,707
|
|
|
2,886
|
|
Non-interest expenses
– reported
|
|
5,947
|
|
|
5,616
|
|
|
5,709
|
|
|
23,076
|
|
|
21,604
|
|
Non-interest expenses
– adjusted1
|
|
5,898
|
|
|
5,576
|
|
|
5,646
|
|
|
22,909
|
|
|
21,338
|
|
Net income –
reported
|
|
3,781
|
|
|
3,545
|
|
|
5,143
|
|
|
14,298
|
|
|
11,895
|
|
Net income –
adjusted1
|
|
3,866
|
|
|
3,628
|
|
|
2,970
|
|
|
14,649
|
|
|
9,968
|
|
Financial
positions (billions of Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total loans net of
allowance for loan losses
|
$
|
722.6
|
|
$
|
719.2
|
$
|
|
717.5
|
|
$
|
722.6
|
|
$
|
717.5
|
|
Total
assets
|
|
1,728.7
|
|
|
1,703.1
|
|
|
1,715.9
|
|
|
1,728.7
|
|
|
1,715.9
|
|
Total
deposits
|
|
1,125.1
|
|
|
1,118.7
|
|
|
1,135.3
|
|
|
1,125.1
|
|
|
1,135.3
|
|
Total
equity
|
|
99.8
|
|
|
99.9
|
|
|
95.5
|
|
|
99.8
|
|
|
95.5
|
|
Total risk-weighted
assets2
|
|
460.3
|
|
|
465.5
|
|
|
478.9
|
|
|
460.3
|
|
|
478.9
|
|
Financial
ratios
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on common
equity (ROE) – reported3
|
|
15.7
|
%
|
|
15.3
|
%
|
|
23.3
|
%
|
|
15.5
|
%
|
|
13.6
|
%
|
Return on common
equity – adjusted1
|
|
16.1
|
|
|
15.6
|
|
|
13.3
|
|
|
15.9
|
|
|
11.4
|
|
Return on tangible
common equity (ROTCE)1
|
|
21.3
|
|
|
20.8
|
|
|
31.5
|
|
|
21.2
|
|
|
18.7
|
|
Return on tangible
common equity – adjusted1
|
|
21.4
|
|
|
20.9
|
|
|
17.9
|
|
|
21.4
|
|
|
15.3
|
|
Efficiency ratio –
reported3
|
|
54.4
|
|
|
52.4
|
|
|
48.2
|
|
|
54.1
|
|
|
49.5
|
|
Efficiency ratio –
adjusted1,3
|
|
53.9
|
|
|
52.0
|
|
|
54.2
|
|
|
53.7
|
|
|
50.5
|
|
Provision for
(recovery of) credit losses as a % of net
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
average loans and
acceptances4
|
|
(0.07)
|
|
|
(0.02)
|
|
|
0.49
|
|
|
(0.03)
|
|
|
1.00
|
|
Common share
information – reported (Canadian dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.04
|
|
$
|
1.92
|
|
$
|
2.80
|
|
$
|
7.73
|
|
$
|
6.43
|
|
Diluted
|
|
2.04
|
|
|
1.92
|
|
|
2.80
|
|
|
7.72
|
|
|
6.43
|
|
Dividends per
share
|
|
0.79
|
|
|
0.79
|
|
|
0.79
|
|
|
3.16
|
|
|
3.11
|
|
Book value per
share3
|
|
51.66
|
|
|
51.21
|
|
|
49.49
|
|
|
51.66
|
|
|
49.49
|
|
Closing share
price5
|
|
89.84
|
|
|
82.95
|
|
|
58.78
|
|
|
89.84
|
|
|
58.78
|
|
Shares outstanding
(millions)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
basic
|
|
1,820.5
|
|
|
1,818.8
|
|
|
1,812.7
|
|
|
1,817.7
|
|
|
1,807.3
|
|
Average
diluted
|
|
1,823.2
|
|
|
1,821.8
|
|
|
1,813.9
|
|
|
1,820.2
|
|
|
1,808.8
|
|
End of
period
|
|
1,822.0
|
|
|
1,820.0
|
|
|
1,815.6
|
|
|
1,822.0
|
|
|
1,815.6
|
|
Market capitalization
(billions of Canadian dollars)
|
$
|
163.7
|
|
$
|
151.0
|
|
$
|
106.7
|
|
$
|
163.7
|
|
$
|
106.7
|
|
Dividend
yield3
|
|
3.7
|
%
|
|
3.7
|
%
|
|
5.1
|
%
|
|
3.9
|
%
|
|
4.8
|
%
|
Dividend payout
ratio3
|
|
38.7
|
|
|
41.2
|
|
|
28.2
|
|
|
40.9
|
|
|
48.3
|
|
Price-earnings
ratio3
|
|
11.6
|
|
|
9.8
|
|
|
9.2
|
|
|
11.6
|
|
|
9.2
|
|
Total shareholder
return (1 year)3
|
|
58.9
|
|
|
44.4
|
|
|
(17.9)
|
|
|
58.9
|
|
|
(17.9)
|
|
Common share
information – adjusted (Canadian
dollars)1,3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per share
earnings
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.09
|
|
$
|
1.96
|
|
$
|
1.60
|
|
$
|
7.92
|
|
$
|
5.37
|
|
Diluted
|
|
2.09
|
|
|
1.96
|
|
|
1.60
|
|
|
7.91
|
|
|
5.36
|
|
Dividend payout
ratio
|
|
37.8
|
%
|
|
40.2
|
%
|
|
49.2
|
%
|
|
39.9
|
%
|
|
57.9
|
%
|
Price-earnings
ratio
|
|
11.3
|
|
|
11.2
|
|
|
11.0
|
|
|
11.3
|
|
|
11.0
|
|
Capital
Ratios2
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common Equity Tier 1
Capital ratio
|
|
15.2
|
%
|
|
14.5
|
%
|
|
13.1
|
%
|
|
15.2
|
%
|
|
13.1
|
%
|
Tier 1 Capital
ratio
|
|
16.5
|
|
|
15.9
|
|
|
14.4
|
|
|
16.5
|
|
|
14.4
|
Total Capital
ratio
|
|
19.1
|
|
|
18.5
|
|
|
16.7
|
|
|
19.1
|
|
|
16.7
|
Leverage
ratio
|
|
4.8
|
|
|
4.8
|
|
|
4.5
|
|
|
4.8
|
|
|
4.5
|
1
|
The Toronto-Dominion
Bank ("TD" or the "Bank") prepares its Consolidated Financial
Statements in accordance with IFRS, the current Generally Accepted
Accounting Principles (GAAP), and refers to results prepared in
accordance with IFRS as the "reported" results. The Bank also
utilizes non-GAAP financial measures such as "adjusted" results and
non-GAAP ratios to assess each of its businesses and to measure
overall Bank performance. To arrive at adjusted results, the Bank
adjusts for "items of note", from reported results. 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 and Leverage Requirements guidelines. Refer
to the "Capital Position" section in the 2021 MD&A for further
details.
|
3
|
For additional
information about this metric, refer to the Glossary in the 2021
MD&A, which is incorporated by reference.
|
4
|
Excludes acquired
credit-impaired (ACI) loans.
|
5
|
Toronto Stock
Exchange (TSX) closing market price.
|
HOW WE PERFORMED
ECONOMIC SUMMARY AND OUTLOOK
The global economy's
recovery from the COVID-19 pandemic continues. As public health
restrictions are lifted, activity is resuming in higher-contact
sectors. However, supply disruptions are increasingly constraining
the pace of the recovery. Shortages of microchips have led to
significant reductions in automobile production around the world,
while the logistics industry is struggling with backlogs that are
slowing the delivery of products to their final destination.
Disparities in vaccination rates are driving varying health
outcomes, exacerbating supply constraints. Recent outbreaks of
COVID-19 in Asia have worsened
input shortages and contributed to delays at ports. With
containment measures continuing to interrupt workflows, global
supply chains remain at risk of ongoing disruption, which could put
upward pressure on prices and limit global economic growth.
The U.S. economy grew by an estimated 2% annualized in the third
calendar quarter, down from 6.5% on average in the first half of
the year. After unsustainable double-digit growth in each of the
first two quarters, consumer spending slowed to an annualized rate
of just 1.6% in the third quarter. Much of the pullback was due to
a retreat in spending on durable goods. Motor vehicle sales, in
particular, contracted by an annualized 54%, in part due to
scarcity of available product. In contrast, spending on services
continued to recover, but at a slower rate than in previous
quarters, as concerns about the Delta variant weighed on the
rebound in recreation, food services and accommodation sectors.
While U.S. GDP now exceeds its pre‑recession level, the recovery
has been highly imbalanced. As of the third calendar quarter,
spending on goods was 7% above its pre-pandemic level, while
spending on services – which comprise a much larger share of the
economy – was still 1.6% below that threshold. The divergence has
caused a widening in the trade deficit and contributed to supply
shortages. A reorientation of activity back toward services should
help alleviate some of these pressures, while high levels of
savings should help households absorb higher prices and allow for
continued growth in calendar 2022.
The recent slowdown in U.S. economic activity is less evident in
the labour market. Job growth picked up in October, suggesting a
re-acceleration in economic activity in the final quarter of the
calendar year. Demand for workers is very strong – the rate of job
openings hit a record high at the midpoint of the year and remains
well above pre-pandemic levels – but it is taking longer for
employers to fill positions. As of October, there were over three
million fewer people in the U.S. labour force than prior to the
pandemic. This shrinkage in the labour force is restraining job
growth and helping push down the unemployment rate, which hit 4.6%
in October.
The uneven nature of the recovery, alongside ongoing supply
constraints, has led to elevated inflationary pressures. The
consumer price index rose 5.4% year-over-year in September and has
been above the 5% threshold since May of this year. Price pressures
appear to be becoming more widespread, encompassing not just goods
categories, such as food, energy and vehicles, but also services,
including shelter. The latter have historically proven more
persistent.
In November, the Federal Reserve took its first steps toward
reducing monetary accommodation, announcing a reduction in its
monthly asset purchases from the current rate of US$80 billion in Treasuries and US$40 billion in agency mortgage-backed
securities. The central bank will reduce purchases of Treasuries by
US$10 billion per month and purchases
of mortgage-backed securities by US$5
billion per month, putting it on track to cease expanding
its balance sheet by the middle of next year. After that point,
TD Economics expects the Federal Reserve to raise the federal
funds rate in 25 basis points (bps) increments twice in the second
half of calendar 2022. The timing and magnitude of future rate
increases may be altered should inflationary pressures fail to ease
to the central bank's satisfaction.
After a pullback in activity in the second calendar quarter, the
Canadian economy returned to modest growth in the third quarter.
Economic reopening has led to stronger growth in service areas of
the economy, but drought conditions severely hampered agricultural
output through the summer months, while supply chain shortages led
to a pullback in manufacturing activity that has lasted through the
fall. As these impacts fade, economic activity is expected to
re‑accelerate. While an uptick in virus cases poses a downside risk
to the outlook, especially as the winter progresses, Canada's high rates of vaccination and more
consistent implementation of mitigating policies, including mask
requirements and vaccine "green passes" for indoor activities,
should reduce the likelihood of major disruptions to economic
activity. Meanwhile, the large pool of excess savings should
continue to support spending over the course of 2022.
One key advantage for the Canadian economy is the outperformance
of the labour market, which has seen all of the jobs lost during
the initial pandemic shock replaced, and the labour force return to
its pre-pandemic size. Still, there is room for additional
progress. Job growth has been concentrated in a handful of sectors,
while employment in high-contact service industries, such as
leisure and hospitality, remains well below pre-COVID levels. In
contrast to the dynamic in the U.S., Canada's strong labour force growth has
limited the improvement in the unemployment rate, which sat at 6.7%
in October. As in the United
States, demand for labour is high and job growth is expected
to remain healthy.
The Canadian housing market has remained resilient. After
pulling back in the summer, resale activity has re-accelerated in
recent months. Average home price growth has also picked up,
reflecting tight market conditions across the country. Limited
supply may support prices, but the rate of home price growth should
slow given the erosion in affordability and an edging up of
mortgage rates.
Consumer price inflation in Canada, while lower than in the U.S., has also
picked up in recent months, reaching 4.4% in September, the fastest
rate in thirteen years. Accelerating food price growth, along with
rising energy and shelter costs, have pushed up inflation. Like the
U.S. and other advanced economies, Canada is susceptible to further price
pressures from prolonged global supply chain disruptions.
The Bank of Canada kept its
overnight interest rate at 0.25% in October, but went one step
further than the Federal Reserve in ending its asset purchase
program outright. With a stronger labour market recovery, this puts
the Bank of Canada in a position
to begin raising interest rates earlier than the Federal Reserve.
TD Economics expects the overnight rate to rise by 25 bps in
the second calendar quarter of 2022, with two more 25 bps increases
to come before the end of the calendar year. TD Economics expects
the Canadian dollar to remain in a range of 79-81 U.S. cents over
the next two years.
THE BANK'S RESPONSE TO COVID-19
Efforts to contain the
COVID-19 pandemic continued to have a profound impact on economies
around the world throughout fiscal 2021. In North America, the banking sector implemented
a variety of measures in March and April of 2020 to ease the strain
on consumers and businesses, some of which continued into 2021.
Similarly, governments, crown corporations, central banks, and
regulators introduced programs to mitigate the fallout of the
crisis and support the effective functioning of financial markets,
and some of those measures also remained in place in 2021. TD has
been actively engaged in the ongoing effort to respond to the
COVID-19 pandemic, guided by the principles of supporting the
well‑being of its customers and colleagues and maintaining the
Bank's operational and financial resilience.
Beginning in the second quarter of 2020, the Bank enabled
substantially all of its employees to work from home. While most of
the Bank's branch and store employees were able to return to their
workplaces before the 2021 fiscal year began, approximately 60,000
TD colleagues continued to work from home throughout the 2021
fiscal year, and these arrangements are expected to remain in place
for some time. TD's operations, including the Bank's technology
infrastructure, network capacity, enterprise cloud capabilities,
and remote access systems have remained stable in the months since
the onset of COVID-19, providing ongoing support for work from home
arrangements and a continued high level of online and mobile
customer traffic. The Bank continues to evaluate its medium- and
long-term plans related to COVID-19, including the impact of the
economic recovery and, for various 'return to the workplace'
scenarios.
In fiscal 2020, the Bank offered several forms of direct
financial assistance to customers experiencing financial hardship
due to COVID-19, including deferral of loan payments. The bulk of
this assistance has largely run its course, except for deferrals of
real estate secured loans in the U.S., where the program allowed
deferrals for up to 18 months. There have been few other customer
requests for extensions. As of October 31,
2021, gross loan balances that remained subject to
COVID-related deferral programs were approximately $0.04 billion in Canada, primarily reflecting Small Business
Banking and Commercial Lending portfolios ($4.4 billion as at October 31, 2020, primarily reflecting Real
Estate Secured Lending, Other Consumer Lending, Small Business
Banking and Commercial Lending portfolios), and US$0.49 billion in the
United States, primarily in the Real Estate Secured Lending
portfolio (US$2.2 billion as at
October 31, 2020, primarily
reflecting Real Estate Secured Lending, Other Consumer Lending,
Small Business Banking and Commercial Lending portfolios).
Delinquency rates for customers that have exited deferral are
higher than for the broader population but remain low in absolute
terms, reflecting the continuation of government support and TD's
proactive outreach to clients. The Bank continues to provide advice
and assistance to customers through its usual channels, TD Helps in
Canada and TD Cares in the U.S.
Any financial relief offered through these channels is not included
in the balances disclosed above.
In addition to direct financial assistance, the Bank continues
to support programs for individuals and businesses introduced by
the Canadian and U.S. governments described below.
Canada Emergency Business
Account Program
Under the Canada Emergency
Business Account (CEBA) Program, with funding provided by Her
Majesty in Right of Canada (the
"Government of Canada") and Export
Development Canada (EDC) as the Government of Canada's agent, the Bank provided eligible
business banking customers with an interest-free, partially
forgivable loan of up to $60,000
until December 31, 2022. If the loan
is not repaid by December 31, 2022,
it will be extended for an additional 3-year term bearing an
interest rate of 5% per annum. The application window for new CEBA
loans and expansion requests closed on June
30, 2021. The funding provided to the Bank by the Government
of Canada in respect of the CEBA
Program represents an obligation to pass-through collections on the
CEBA loans and is otherwise non-recourse to the Bank. As of
October 31, 2021, the Bank had
provided approximately 213,000 customers (July 31, 2021 – 211,000) with CEBA loans and had
funded approximately $11.6 billion
(July 31, 2021 – $11.5 billion) in loans under the
program.
U.S. Coronavirus Aid, Relief, and Economic Security Act,
Paycheck Protection Program
Under the Paycheck Protection Program (PPP) established by the U.S.
Coronavirus Aid, Relief, and Economic Security (CARES) Act and
implemented by the Small Business Administration (SBA), the Bank
provided loans to small businesses to assist them in retaining
workers, maintaining payroll, and covering other expenses. PPP
loans have a 2-year or 5-year term, bear an interest rate of 1% per
annum, and are 100% guaranteed by the SBA. The full principal
amount of the loan and any accrued interest are eligible for
forgiveness if the loan is used for qualifying expenses. The Bank
receives fees on PPP loans generally ranging from 1-5% of the
loan's value at origination. The fees are amortized over the life
of the loan, with any unamortized amount upon forgiveness being
recognized immediately as income. The Bank will be paid by the SBA
for any portion of the loan that is forgiven. The application
window for new PPP loans closed on May 31, 2021. As of
October 31, 2021, the Bank had funded
approximately 133,000 PPP loans (July 31,
2021 – 133,000) and had approximately 36,000 PPP loans
outstanding (July 31, 2021 – 72,500)
with a gross carrying amount of approximately US$3.1 billion (July 31,
2021 – US$6.3 billion). During
the three months ended October 31,
2021, no new PPP loans were originated (three months ended
July 31, 2021 – 2,000 new PPP loans, US$0.2 billion) and approximately 36,500 PPP
loans (US$3.2 billion) were forgiven
(three months ended July 31, 2021 –
27,500 PPP loans, US$3.7
billion).
Other Programs
During 2021, the Bank continued to work with federal Crown
Corporations, including EDC and the Business Development Bank of
Canada (BDC) to deliver various
other guarantee and co-lending programs for the Bank's clients.
This includes the Highly Affected Sectors Credit Availability
Program (HASCAP) Guarantee to provide support to Canadian
businesses that have been highly affected by and are facing
economic hardship as a result of the COVID-19 pandemic which
launched in the second fiscal quarter. In addition, TD is working
with Canada's federal government
to facilitate access to the Canada Recovery Benefit and
Canada Emergency Wage Subsidy
through Canada Revenue Agency direct deposit.
HOW THE BANK REPORTS
The Bank prepares its
Consolidated Financial Statements in accordance with IFRS, the
current GAAP, and refers to results prepared in accordance with
IFRS as "reported" results.
Non-GAAP and Other Financial Measures
In addition to
reported results, the Bank also presents certain financial
measures, including non-GAAP financial measures that are
historical, non-GAAP ratios, supplementary financial measures and
capital management measures, to assess its results. Non-GAAP
financial measures, such as "adjusted" results, are utilized to
assess the Bank's businesses and to measure the Bank's overall
performance. To arrive at adjusted results, the Bank adjusts for
"items of note", from reported results. Items of note are items
which management does not believe are indicative of underlying
business performance and are disclosed in Table 3. Non-GAAP ratios
include a non-GAAP financial measure as one or more of its
components. Examples of non-GAAP ratios include adjusted basic and
diluted earnings per share (EPS), adjusted dividend payout ratio,
adjusted efficiency ratio, and adjusted effective income tax rate.
The Bank believes that non-GAAP financial measures and non-GAAP
ratios provide the reader with a better understanding of how
management views the Bank's performance. Non-GAAP financial
measures and non-GAAP ratios used in this document are not defined
terms under IFRS and, therefore, may not be comparable to similar
terms used by other issuers. Supplementary financial measures
depict the Bank's financial performance and position, and capital
management measures depict the Bank's capital position, and both
are explained in this document where they first appear.
U.S. Strategic Cards
The Bank's U.S. strategic cards
portfolio is comprised of agreements with certain U.S. retailers
pursuant to which TD is the U.S. issuer of private label and
co-branded consumer credit cards to their U.S. customers. Under the
terms of the individual agreements, the Bank and the retailers
share in the profits generated by the relevant portfolios after
credit losses. Under IFRS, TD is required to present the gross
amount of revenue and PCL related to these portfolios in the Bank's
Consolidated Statement of Income. At the segment level, the
retailer program partners' share of revenues and credit losses is
presented in the Corporate segment, with an offsetting amount
(representing the partners' net share) recorded in Non-interest
expenses, resulting in no impact to Corporate's reported Net income
(loss). The Net income (loss) included in the U.S. Retail segment
includes only the portion of revenue and credit losses attributable
to TD under the agreements.
Investment in The Charles Schwab Corporation
On
October 6, 2020, the Bank acquired an
approximately 13.5% stake in Schwab following the completion of
Schwab's acquisition of TD Ameritrade Holding Corporation ("TD
Ameritrade") of which the Bank was a major shareholder (the "Schwab
transaction"). For further details, refer to Note 12 of the 2021
Consolidated Financial Statements. The Bank's share of Schwab's
earnings is reported with a one-month lag, and the Bank started
recording its share of Schwab's earnings on this basis in the first
quarter of fiscal 2021. The U.S. Retail segment reflects the Bank's
share of net income from its investment in Schwab. The Corporate
segment net income (loss) includes amounts for amortization of
acquired intangibles and the acquisition and integration charges
related to the Schwab transaction.
On November 25, 2019, the Bank and
Schwab entered into an insured deposit account agreement (the
"Schwab IDA Agreement"), which became effective upon closing of the
Schwab transaction and has an initial expiration date of
July 1, 2031. Refer to the "Related
Party Transactions" section in the 2021 MD&A for further
details.
SIGNIFICANT ACQUISITIONS
The Bank completed two acquisitions during fiscal 2021:
Acquisition of Wells Fargo
& Company's Canadian Direct Equipment Finance
Business
On May 1, 2021, the
Bank acquired the Canadian Direct Equipment Finance business of
Wells Fargo & Company. The results of the acquired business
have been consolidated from the acquisition date and included in
the Canadian Retail segment.
Acquisition of Headlands Tech
Global Markets, LLC
On July 1,
2021, the Bank acquired Headlands Tech Global Markets, LLC,
a Chicago based quantitative fixed
income trading company. The results of the acquired business have
been consolidated from the acquisition date and included in the
Wholesale segment.
These acquisitions were accounted for as business combinations
under the purchase method. The excess of accounting consideration
over the fair value of tangible net assets acquired is allocated to
other intangibles and goodwill.
The following table provides the operating results on a reported
basis for the Bank.
TABLE 2: OPERATING
RESULTS – Reported1
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
July 31
|
October 31
|
October
31
|
|
October 31
|
|
|
2021
|
2021
|
2020
|
2021
|
|
2020
|
Net interest
income
|
$
|
6,262
|
$
|
6,004
|
$
|
6,027
|
$
|
24,131
|
$
|
24,497
|
Non-interest
income
|
|
4,679
|
|
4,708
|
|
5,817
|
|
18,562
|
|
19,149
|
Total
revenue
|
|
10,941
|
|
10,712
|
|
11,844
|
|
42,693
|
|
43,646
|
Provision for
(recovery of) credit losses
|
|
(123)
|
|
(37)
|
|
917
|
|
(224)
|
|
7,242
|
Insurance claims and
related expenses
|
|
650
|
|
836
|
|
630
|
|
2,707
|
|
2,886
|
Non-interest
expenses
|
|
5,947
|
|
5,616
|
|
5,709
|
|
23,076
|
|
21,604
|
Income before
income taxes and share of net income from
|
|
|
|
|
|
|
|
|
|
|
|
investment in
Schwab and TD Ameritrade
|
|
4,467
|
|
4,297
|
|
4,588
|
|
17,134
|
|
11,914
|
Provision for
(recovery of) income taxes
|
|
910
|
|
922
|
|
(202)
|
|
3,621
|
|
1,152
|
Share of net income
from investment in Schwab and TD Ameritrade
|
|
224
|
|
170
|
|
353
|
|
785
|
|
1,133
|
Net income –
reported
|
|
3,781
|
|
3,545
|
|
5,143
|
|
14,298
|
|
11,895
|
Preferred dividends
and distributions on other equity instruments
|
|
63
|
|
56
|
|
64
|
|
249
|
|
267
|
Net income
available to common shareholders
|
$
|
3,718
|
$
|
3,489
|
$
|
5,079
|
$
|
14,049
|
$
|
11,628
|
1
|
Certain comparative
amounts have been reclassified to conform with the presentation
adopted in the current period.
|
The following table provides a reconciliation between the Bank's
adjusted and reported results.
TABLE 3: NON-GAAP
FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net
Income1
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
July 31
|
October 31
|
October
31
|
|
October 31
|
|
2021
|
2021
|
2020
|
2021
|
|
2020
|
Operating results
– adjusted
|
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
6,262
|
$
|
6,004
|
$
|
6,027
|
$
|
24,131
|
$
|
24,497
|
Non-interest
income2
|
|
4,679
|
|
4,708
|
|
4,396
|
|
18,562
|
|
17,728
|
Total
revenue
|
|
10,941
|
|
10,712
|
|
10,423
|
|
42,693
|
|
42,225
|
Provision for
(recovery of) credit losses
|
|
(123)
|
|
(37)
|
|
917
|
|
(224)
|
|
7,242
|
Insurance claims and
related expenses
|
|
650
|
|
836
|
|
630
|
|
2,707
|
|
2,886
|
Non-interest
expenses3
|
|
5,898
|
|
5,576
|
|
5,646
|
|
22,909
|
|
21,338
|
Income before
income taxes and share of net income from
|
|
|
|
|
|
|
|
|
|
|
|
investment in
Schwab and TD Ameritrade
|
|
4,516
|
|
4,337
|
|
3,230
|
|
17,301
|
|
10,759
|
Provision for income
taxes
|
|
921
|
|
931
|
|
636
|
|
3,658
|
|
2,020
|
Share of net income
from investment in Schwab and TD Ameritrade4
|
|
271
|
|
222
|
|
376
|
|
1,006
|
|
1,229
|
Net income –
adjusted
|
|
3,866
|
|
3,628
|
|
2,970
|
|
14,649
|
|
9,968
|
Preferred dividends
and distributions on other equity instruments
|
|
63
|
|
56
|
|
64
|
|
249
|
|
267
|
Net income
available to common shareholders – adjusted
|
|
3,803
|
|
3,572
|
|
2,906
|
|
14,400
|
|
9,701
|
Pre-tax
adjustments for items of note
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles5
|
|
(74)
|
|
(68)
|
|
(61)
|
|
(285)
|
|
(262)
|
Acquisition and
integration charges related to the Schwab
transaction6
|
|
(22)
|
|
(24)
|
|
–
|
|
(103)
|
|
–
|
Net gain on sale of
the investment in TD Ameritrade2
|
|
–
|
|
–
|
|
1,421
|
|
–
|
|
1,421
|
Charges associated
with the acquisition of Greystone3
|
|
–
|
|
–
|
|
(25)
|
|
–
|
|
(100)
|
Less: Impact of
income taxes
|
|
|
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles
|
|
(9)
|
|
(7)
|
|
(8)
|
|
(32)
|
|
(37)
|
Acquisition and
integration charges related to the Schwab
transaction6
|
|
(2)
|
|
(2)
|
|
–
|
|
(5)
|
|
–
|
Net gain on sale of
the investment in TD Ameritrade
|
|
–
|
|
–
|
|
(829)
|
|
–
|
|
(829)
|
Charges associated
with the acquisition of Greystone
|
|
–
|
|
–
|
|
(1)
|
|
–
|
|
(2)
|
Total adjustments
for items of note
|
|
(85)
|
|
(83)
|
|
2,173
|
|
(351)
|
|
1,927
|
Net income
available to common shareholders – reported
|
$
|
3,718
|
$
|
3,489
|
$
|
5,079
|
$
|
14,049
|
$
|
11,628
|
1
|
Certain comparative
amounts have been reclassified to conform with the presentation
adopted in the current period.
|
2
|
Adjusted non-interest
income excludes the following item of note related to the Bank's
own asset acquisitions and business combinations:
|
|
i.
|
Net gain on sale of
the investment in TD Ameritrade – Q4 2020: $1,421 million. This
amount was reported in the Corporate segment.
|
3
|
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 – Q4 2021: $40 million, Q3 2021: $34 million,
2021: $148 million, Q4 2020: $38 million, 2020: $166 million.
These charges are reported in the Corporate segment.
|
|
ii.
|
The Bank's own
integration costs related to the Schwab transaction – Q4 2021: $9
million, Q3 2021: $6 million, 2021: $19 million. These costs
are reported in the Corporate segment.
|
|
iii.
|
Charges associated
with the acquisition of Greystone – Q4 2020: $25 million, 2020:
$100 million. These charges were reported in the Canadian Retail
segment.
|
4
|
Adjusted share of net
income from investment in Schwab and TD Ameritrade 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 and TD Ameritrade-related acquired intangibles – Q4 2021:
$34 million, Q3 2021: $34 million, 2021: $137 million, Q4 2020:
$23 million, 2020: $96 million; and
|
|
ii.
|
The Bank's share of
acquisition and integration charges associated with Schwab's
acquisition of TD Ameritrade – Q4 2021: $13 million, Q3 2021: $18
million, 2021: $84 million.
|
5
|
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 and TD
Ameritrade, both reported in the Corporate segment. Refer to
footnotes 3 and 4 for amounts.
|
6
|
Acquisition and
integration charges related to the Schwab transaction include the
Bank's own integration 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 3 and 4 for
amounts.
|
TABLE 4:
RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER
SHARE1
|
|
(Canadian
dollars)
|
|
For the three
months ended
|
For the twelve
months ended
|
|
October
31
|
July 31
|
October 31
|
October
31
|
|
October 31
|
|
2021
|
2021
|
2020
|
2021
|
|
2020
|
Basic earnings per
share – reported
|
$
|
2.04
|
$
|
1.92
|
$
|
2.80
|
$
|
7.73
|
$
|
6.43
|
Adjustments for items
of note
|
|
0.05
|
|
0.04
|
|
(1.20)
|
|
0.19
|
|
(1.06)
|
Basic earnings per
share – adjusted
|
$
|
2.09
|
$
|
1.96
|
$
|
1.60
|
$
|
7.92
|
$
|
5.37
|
|
|
|
|
|
|
|
|
|
|
|
Diluted earnings
per share – reported
|
$
|
2.04
|
$
|
1.92
|
$
|
2.80
|
$
|
7.72
|
$
|
6.43
|
Adjustments for items
of note
|
|
0.05
|
|
0.04
|
|
(1.20)
|
|
0.19
|
|
(1.07)
|
Diluted earnings
per share – adjusted
|
$
|
2.09
|
$
|
1.96
|
$
|
1.60
|
$
|
7.91
|
$
|
5.36
|
1
|
EPS is computed by
dividing net income available to common shareholders by the
weighted-average number of shares outstanding during the
period.
|
TABLE 5: NON-GAAP
FINANCIAL MEASURES – Reconciliation of Reported to Adjusted
Provision for Income Taxes
|
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
|
For the twelve
months ended
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
October
31
|
|
October 31
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Provision for
income taxes – reported
|
$
|
910
|
|
$
|
922
|
|
$
|
(202)
|
|
$
|
3,621
|
|
$
|
1,152
|
|
Total adjustments
for items of note
|
|
11
|
|
|
9
|
|
|
838
|
|
|
37
|
|
|
868
|
|
Provision for
income taxes – adjusted
|
$
|
921
|
|
$
|
931
|
|
$
|
636
|
|
$
|
3,658
|
|
$
|
2,020
|
|
Effective income
tax rate – reported
|
|
20.4
|
%
|
|
21.5
|
%
|
|
(4.4)
|
%
|
|
21.1
|
%
|
|
9.7
|
%
|
Effective income
tax rate – adjusted1
|
|
20.4
|
|
|
21.5
|
|
|
19.7
|
|
|
21.1
|
|
|
18.8
|
|
1
|
For additional
information about this metric, refer to the Glossary in the 2021
MD&A, which is incorporated by reference.
|
RETURN ON COMMON EQUITY
The consolidated Bank ROE is
calculated as reported net income available to common shareholders
as a percentage of average common equity. The consolidated Bank
adjusted ROE is calculated as adjusted net income available to
common shareholders as a percentage of average common equity.
Adjusted ROE is a non-GAAP ratio, and can be utilized in assessing
the Bank's use of equity.
ROE for the business segments is calculated as the segment net
income attributable to common shareholders as a percentage of
average allocated capital. The Bank's methodology for allocating
capital to its business segments is largely aligned with the common
equity capital requirements under Basel III. Capital allocated to
the business segments was decreased to 9% Common Equity Tier 1
(CET1) Capital effective the second quarter of 2020 compared with
10.5% in the first quarter of 2020, and 10% in fiscal 2019.
TABLE 6: RETURN ON
COMMON EQUITY
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
For the twelve
months ended
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
October
31
|
|
October 31
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Average common
equity
|
$
|
93,936
|
|
$
|
90,626
|
|
$
|
86,883
|
|
$
|
90,677
|
|
$
|
85,203
|
|
Net income
available to common shareholders – reported
|
|
3,718
|
|
|
3,489
|
|
|
5,079
|
|
|
14,049
|
|
|
11,628
|
|
Items of note, net of
income taxes
|
|
85
|
|
|
83
|
|
|
(2,173)
|
|
|
351
|
|
|
(1,927)
|
|
Net income
available to common shareholders – adjusted
|
$
|
3,803
|
|
$
|
3,572
|
|
$
|
2,906
|
|
$
|
14,400
|
|
$
|
9,701
|
|
Return on common
equity – reported
|
|
15.7
|
%
|
|
15.3
|
%
|
|
23.3
|
%
|
|
15.5
|
%
|
|
13.6
|
%
|
Return on common
equity – adjusted
|
|
16.1
|
|
|
15.6
|
|
|
13.3
|
|
|
15.9
|
|
|
11.4
|
|
RETURN ON TANGIBLE COMMON EQUITY
Tangible common
equity (TCE) is calculated as common shareholders' equity less
goodwill, imputed goodwill and intangibles on the investments in
Schwab and TD Ameritrade and other acquired intangible assets, net
of related deferred tax liabilities. ROTCE is calculated as
reported net income available to common shareholders after
adjusting for the after-tax amortization of acquired intangibles,
which are treated as an item of note, as a percentage of average
TCE. Adjusted ROTCE is calculated using reported net income
available to common shareholders, adjusted for all items of note,
as a percentage of average TCE. TCE, ROTCE, and adjusted ROTCE can
be utilized in assessing the Bank's use of equity. TCE is a
non-GAAP financial measure, and ROTCE and adjusted ROTCE are
non-GAAP ratios.
TABLE 7: RETURN ON
TANGIBLE COMMON EQUITY
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
For the twelve
months ended
|
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
October
31
|
|
October 31
|
|
|
|
2021
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
Average common
equity
|
$
|
93,936
|
|
$
|
90,626
|
|
$
|
86,883
|
|
$
|
90,677
|
|
$
|
85,203
|
|
Average
goodwill
|
|
16,408
|
|
|
16,056
|
|
|
17,087
|
|
|
16,404
|
|
|
17,261
|
|
Average imputed
goodwill and intangibles on
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investments in Schwab
and TD Ameritrade
|
|
6,570
|
|
|
6,485
|
|
|
4,826
|
|
|
6,667
|
|
|
4,369
|
|
Average other
acquired intangibles1
|
|
565
|
|
|
419
|
|
|
449
|
|
|
439
|
|
|
509
|
|
Average related
deferred tax liabilities
|
|
(173)
|
|
|
(171)
|
|
|
(237)
|
|
|
(171)
|
|
|
(255)
|
|
Average tangible
common equity
|
|
70,566
|
|
|
67,837
|
|
|
64,758
|
|
|
67,338
|
|
|
63,319
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income available
to common shareholders – reported
|
|
3,718
|
|
|
3,489
|
|
|
5,079
|
|
|
14,049
|
|
|
11,628
|
|
Amortization of
acquired intangibles, net of income taxes
|
|
65
|
|
|
61
|
|
|
53
|
|
|
253
|
|
|
225
|
|
Net income
available to common shareholders adjusted for
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
amortization of
acquired intangibles, net of income taxes
|
|
3,783
|
|
|
3,550
|
|
|
5,132
|
|
|
14,302
|
|
|
11,853
|
|
Other items of note,
net of income taxes
|
|
20
|
|
|
22
|
|
|
(2,226)
|
|
|
98
|
|
|
(2,152)
|
|
Net income
available to common shareholders – adjusted
|
$
|
3,803
|
|
$
|
3,572
|
|
$
|
2,906
|
|
$
|
14,400
|
|
$
|
9,701
|
|
Return on tangible
common equity
|
|
21.3
|
%
|
|
20.8
|
%
|
|
31.5
|
%
|
|
21.2
|
%
|
|
18.7
|
%
|
Return on tangible
common equity – adjusted
|
|
21.4
|
|
|
20.9
|
|
|
17.9
|
|
|
21.4
|
|
|
15.3
|
|
1
|
Excludes intangibles
relating to software and asset servicing rights.
|
IMPACT OF FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT
TRANSLATED EARNINGS
The following table reflects the
estimated impact of foreign currency translation on key U.S. Retail
segment income statement items. The impact is calculated as the
difference in translated earnings using the average US to Canadian
dollars exchange rates in the periods noted.
TABLE 8: IMPACT OF
FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT TRANSLATED
EARNINGS
|
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
For the twelve
months ended
|
|
October 31, 2021
vs.
|
|
October 31, 2021
vs.
|
|
October 31,
2020
|
|
October 31,
2020
|
|
Increase
(Decrease)
|
|
Increase
(Decrease)
|
U.S. Retail
Bank
|
|
|
|
|
Total
revenue
|
$
|
(144)
|
$
|
(752)
|
Non-interest
expenses
|
|
(84)
|
|
(443)
|
Net income –
after-tax
|
|
(58)
|
|
(300)
|
Share of net income
from investment in Schwab1
|
|
(14)
|
|
(57)
|
U.S. Retail
segment net income
|
|
(72)
|
|
(357)
|
Earnings per
share (Canadian dollars)
|
|
|
|
|
Basic
|
$
|
(0.04)
|
$
|
(0.20)
|
Diluted
|
|
(0.04)
|
|
(0.20)
|
1
|
Share of net income
from investment in Schwab and the foreign exchange impact are
reported with a one-month lag.
|
|
|
|
|
|
Average foreign
exchange rate (equivalent of CAD $1.00)
|
For the three
months ended
|
For the twelve
months ended
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
2021
|
2020
|
2021
|
2020
|
U.S.
dollar
|
0.796
|
0.756
|
0.795
|
0.743
|
HOW OUR BUSINESSES PERFORMED
For management reporting purposes, the Bank reports its results
under three key business segments: Canadian Retail, which includes
the results of the personal and commercial banking, wealth, and
insurance businesses; U.S. Retail, which includes the results of
the personal and business banking operations, wealth management
services, and the Bank's investment in Schwab; and Wholesale
Banking. The Bank's other activities are grouped into the Corporate
segment.
Results of each business segment reflect revenue, expenses,
assets, and liabilities generated by the businesses in that
segment. Where applicable, the Bank measures and evaluates the
performance of each segment based on adjusted results and ROE, and
for those segments the Bank indicates that the measure is adjusted.
For further details, refer to Note 29 of the
Bank's Consolidated Financial Statements for the year ended
October 31, 2021.
PCL related to performing (Stage 1 and Stage 2) and impaired
(Stage 3) financial assets, loan commitments, and financial
guarantees is recorded within the respective segment.
Net interest income within Wholesale Banking is calculated on a
TEB, which means that the value of non-taxable or tax exempt
income, including dividends, is adjusted to its equivalent
before-tax value. Using TEB allows the Bank to measure income from
all securities and loans consistently and makes for a more
meaningful comparison of net interest income with similar
institutions. The TEB increase to net interest income and provision
for income taxes reflected in Wholesale Banking results is reversed
in the Corporate segment. The TEB adjustment for the quarter was
$36 million, compared with
$44 million in the fourth quarter last year, and $37 million in the prior quarter.
Share of net income from investment in Schwab is reported in the
U.S. Retail segment. Amounts for amortization of acquired
intangibles and the acquisition and integration charges related to
the Schwab transaction are recorded in the Corporate segment.
TABLE 9: CANADIAN
RETAIL
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
|
For the three
months ended
|
|
|
October
31
|
|
July
31
|
|
October
31
|
|
|
2021
|
|
2021
|
|
2020
|
|
Net interest
income
|
$
|
3,062
|
|
$
|
3,044
|
|
$
|
2,982
|
|
Non-interest
income
|
|
3,458
|
|
|
3,535
|
|
|
3,047
|
|
Total
revenue
|
|
6,520
|
|
|
6,579
|
|
|
6,029
|
|
Provision for
(recovery of) credit losses – impaired
|
|
140
|
|
|
154
|
|
|
199
|
|
Provision for
(recovery of) credit losses – performing
|
|
(87)
|
|
|
(54)
|
|
|
52
|
|
Total provision for
(recovery of) credit losses
|
|
53
|
|
|
100
|
|
|
251
|
|
Insurance claims and
related expenses
|
|
650
|
|
|
836
|
|
|
630
|
|
Non-interest expenses
– reported
|
|
2,912
|
|
|
2,748
|
|
|
2,684
|
|
Non-interest expenses
– adjusted1
|
|
2,912
|
|
|
2,748
|
|
|
2,659
|
|
Provision for
(recovery of) income taxes – reported
|
|
768
|
|
|
770
|
|
|
662
|
|
Provision for
(recovery of) income taxes – adjusted1
|
|
768
|
|
|
770
|
|
|
663
|
|
Net income –
reported
|
|
2,137
|
|
|
2,125
|
|
|
1,802
|
|
Net income –
adjusted1
|
$
|
2,137
|
|
$
|
2,125
|
|
$
|
1,826
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity – reported2
|
|
47.7
|
%
|
|
47.6
|
%
|
|
40.5
|
%
|
Return on common
equity – adjusted1,2
|
|
47.7
|
|
|
47.6
|
|
|
41.0
|
|
Net interest margin
(including on securitized assets)
|
|
2.57
|
|
|
2.61
|
|
|
2.71
|
|
Efficiency ratio –
reported
|
|
44.7
|
|
|
41.8
|
|
|
44.5
|
|
Efficiency ratio –
adjusted1
|
|
44.7
|
|
|
41.8
|
|
|
44.1
|
|
Assets under
administration (billions of Canadian
dollars)3
|
$
|
557
|
|
$
|
538
|
|
$
|
433
|
|
Assets under
management (billions of Canadian dollars)3
|
|
427
|
|
|
420
|
|
|
358
|
|
Number of Canadian
retail branches
|
|
1,061
|
|
|
1,073
|
|
|
1,085
|
|
Average number of
full-time equivalent staff
|
|
42,205
|
|
|
41,763
|
|
|
40,725
|
|
1
|
For additional
information about the Bank's use of non-GAAP financial measures,
refer to "Non-GAAP and Other Financial Measures" section in the
"How We Performed" section of this document.
|
2
|
Capital allocated to
the business segment was 9% CET1 Capital.
|
3
|
For additional
information about this metric, refer to the Glossary in the 2021
MD&A, which is incorporated by reference.
|
Quarterly comparison – Q4 2021 vs. Q4 2020
Canadian Retail reported net income for the quarter was
$2,137 million, an increase of
$335 million, or 19%, compared with
the fourth quarter last year, reflecting higher revenue and lower
PCL, partially offset by higher non-interest expenses. On an
adjusted basis, net income increased $311 million, or 17%. The
reported and adjusted annualized ROE for the quarter was 47.7%,
compared with 40.5% and 41.0%, respectively, in the fourth quarter
last year.
Canadian Retail revenue is derived from the Canadian personal
and commercial banking, wealth, and insurance businesses. Revenue
for the quarter was $6,520 million, an increase of $491 million, or 8%, compared with the fourth
quarter last year.
Net interest income was $3,062
million, an increase of $80
million, or 3%, reflecting volume growth, partially offset
by lower deposit margins. Average loan volumes increased
$37 billion, or 8%, reflecting 8%
growth in personal loans and 11% growth in business loans. Average
deposit volumes increased $47
billion, or 11%, reflecting 8% growth in personal deposits,
17% growth in business deposits, and 12% growth in wealth deposits.
Net interest margin was 2.57%, a decrease of 14 bps, reflecting
changes to balance sheet mix and the ongoing impact of the low
interest rate environment.
Non-interest income was $3,458
million, an increase of $411
million, or 13%, reflecting higher fee-based revenue in the
wealth and banking businesses, and higher insurance volumes,
partially offset by a decrease in the fair value of investments
supporting claims liabilities which resulted in a similar decrease
in insurance claims.
Assets under administration (AUA) were $557 billion as at October 31, 2021, an
increase of $124 billion, or 29%, and
Assets under management (AUM) were $427
billion as at October 31, 2021, an increase of
$69 billion, or 19%, compared with
the fourth quarter last year, both reflecting market appreciation
and new asset growth.
PCL was $53 million, a decrease of
$198 million, compared with the
fourth quarter last year. PCL – impaired for the quarter was
$140 million, a decrease of
$59 million, or 30% largely in the
credit card and commercial lending portfolios, primarily related to
improved credit conditions. PCL – performing was a recovery of
$87 million, lower by $139 million, reflecting a performing allowance
increase in the prior year, and allowance release this quarter
largely related to improved credit conditions. Total PCL as an
annualized percentage of credit volume was 0.04%, or a decrease of
18 bps compared with the fourth quarter last year.
Insurance claims and related expenses for the quarter were
$650 million, an increase of
$20 million, or 3%, compared with the
fourth quarter last year, reflecting less favourable prior years'
claims development and higher current year claims from business
growth, partially offset by improved current year claims experience
and a decrease in the fair value of investments supporting claims
liabilities which resulted in a similar decrease in non-interest
income.
Reported non-interest expenses for the quarter were $2,912 million, an increase of $228 million,
or 8%, compared with the fourth quarter last year, reflecting
higher spend supporting business growth, including technology and
marketing costs, higher employee-related expenses and variable
compensation, partially offset by prior year charges related to the
Greystone acquisition. On an adjusted basis, non-interest expenses
increased $253 million, or 10%.
The reported and adjusted efficiency ratio for the quarter was
44.7%, compared with 44.5% and 44.1%, respectively, in the fourth
quarter last year.
Quarterly comparison – Q4 2021 vs. Q3 2021
Canadian Retail net income for the quarter increased $12 million, or 1%, compared with the prior
quarter, reflecting lower PCL and lower insurance claims, partially
offset by higher non-interest expenses and impact of premium
rebates for customers in the insurance business. The annualized ROE
for the quarter was 47.7%, compared with 47.6% in the prior
quarter.
Revenue decreased $59 million, or
1%, compared with the prior quarter. Net interest income increased
$18 million, or 1%, reflecting volume
growth, partially offset by lower margins. Average loan volumes
increased $10 billion, or 2%,
reflecting 2% growth in personal loans and 3% growth in business
loans. Average deposit volumes increased $12
billion, or 3%, reflecting 2% growth in personal deposits,
4% growth in business deposits, and 3% growth in wealth deposits.
Net interest margin was 2.57%, a decrease of 4 bps, reflecting
lower mortgage prepayment revenue.
Non-interest income decreased $77 million, or 2%,
reflecting the impact of premium rebates for customers in the
insurance business and a decrease in the fair value of investments
supporting claims liabilities which resulted in a similar decrease
in insurance claims, partially offset by higher fee-based revenue
in the wealth and banking businesses.
AUA increased $19 billion, or 4%,
and AUM increased $7 billion, or 2%,
compared with the prior quarter, both reflecting market
appreciation and new asset growth.
PCL was $53 million, a decrease of
$47 million, compared with the prior
quarter. PCL – impaired decreased $14
million, or 9%, primarily reflected in the consumer lending
portfolios. PCL – performing was a recovery of $87 million compared to a recovery of
$54 million in the prior quarter,
largely reflecting continued improvement in credit conditions.
Total PCL as an annualized percentage of credit volume was 0.04%, a
decrease of 4 bps.
Insurance claims and related expenses for the quarter decreased
$186 million, or 22%, compared with the prior quarter,
reflecting more favourable prior years' claims development, fewer
severe weather-related events and a decrease in the fair value of
investments supporting claims liabilities which resulted in a
similar decrease in non-interest income.
Non-interest expenses increased $164
million, or 6%, compared with the prior quarter, reflecting
higher spend supporting business growth, including technology and
marketing costs, higher employee-related expenses and variable
compensation.
The efficiency ratio for the quarter was 44.7%, compared with
41.8% in the prior quarter.
TABLE 10: U.S.
RETAIL
|
|
|
|
|
|
|
|
|
|
(millions of dollars,
except as noted)
|
|
For the three
months ended
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
Canadian
Dollars
|
|
2021
|
|
|
2021
|
|
|
2020
|
|
Net interest
income
|
$
|
2,103
|
|
$
|
1,990
|
|
$
|
2,071
|
|
Non-interest
income
|
|
677
|
|
|
691
|
|
|
646
|
|
Total
revenue
|
|
2,780
|
|
|
2,681
|
|
|
2,717
|
|
Provision for
(recovery of) credit losses – impaired
|
|
68
|
|
|
63
|
|
|
147
|
|
Provision for
(recovery of) credit losses – performing
|
|
(144)
|
|
|
(159)
|
|
|
425
|
|
Total provision for
(recovery of) credit losses
|
|
(76)
|
|
|
(96)
|
|
|
572
|
|
Non-interest
expenses
|
|
1,617
|
|
|
1,518
|
|
|
1,660
|
|
Provision for
(recovery of) income taxes
|
|
111
|
|
|
161
|
|
|
(47)
|
|
U.S. Retail Bank
net income
|
|
1,128
|
|
|
1,098
|
|
|
532
|
|
Share of net income
from investment in Schwab and TD
Ameritrade1,2
|
|
246
|
|
|
197
|
|
|
339
|
|
Net
income
|
$
|
1,374
|
|
$
|
1,295
|
|
$
|
871
|
|
|
|
|
|
|
|
|
|
|
|
U.S.
Dollars
|
|
|
|
|
|
|
|
|
|
Net interest
income
|
$
|
1,673
|
|
$
|
1,619
|
|
$
|
1,566
|
|
Non-interest
income
|
|
539
|
|
|
561
|
|
|
488
|
|
Total
revenue
|
|
2,212
|
|
|
2,180
|
|
|
2,054
|
|
Provision for
(recovery of) credit losses – impaired
|
|
53
|
|
|
53
|
|
|
111
|
|
Provision for
(recovery of) credit losses – performing
|
|
(115)
|
|
|
(127)
|
|
|
322
|
|
Total provision for
(recovery of) credit losses
|
|
(62)
|
|
|
(74)
|
|
|
433
|
|
Non-interest
expenses
|
|
1,288
|
|
|
1,233
|
|
|
1,254
|
|
Provision for
(recovery of) income taxes
|
|
89
|
|
|
130
|
|
|
(36)
|
|
U.S. Retail Bank
net income
|
|
897
|
|
|
891
|
|
|
403
|
|
Share of net income
from investment in Schwab and TD
Ameritrade1,2
|
|
195
|
|
|
161
|
|
|
255
|
|
Net
income
|
$
|
1,092
|
|
$
|
1,052
|
|
$
|
658
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Return on common
equity3
|
|
14.5
|
%
|
|
13.8
|
%
|
|
9.0
|
%
|
Net interest
margin4
|
|
2.21
|
|
|
2.16
|
|
|
2.27
|
|
Efficiency
ratio
|
|
58.2
|
|
|
56.6
|
|
|
61.1
|
|
Assets under
administration (billions of U.S. dollars)
|
$
|
30
|
|
$
|
29
|
|
$
|
24
|
|
Assets under
management (billions of U.S. dollars)
|
|
41
|
|
|
41
|
|
|
39
|
|
Number of U.S. retail
stores
|
|
1,148
|
|
|
1,142
|
|
|
1,223
|
|
Average number of
full-time equivalent staff
|
|
24,771
|
|
|
25,047
|
|
|
26,460
|
|
1
|
The Bank's share of
Schwab's and TD Ameritrade's earnings is reported with a one-month
lag. Refer to Note 12 of the 2021 Consolidated Financial Statements
for further details.
|
2
|
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.
|
3
|
Capital allocated to
the business segment was 9% CET1 Capital.
|
4
|
Net interest margin
is calculated by dividing U.S. Retail segment's net interest income
by average interest-earning assets excluding the impact related to
sweep deposits arrangements and the impact of intercompany deposits
and cash collateral, which management believes better reflects
segment performance. In addition, the value of tax-exempt interest
income is adjusted to its equivalent before-tax value. Net interest
income and average interest-earning assets used in the calculation
are non-GAAP financial measures. 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.
|
Quarterly comparison – Q4 2021 vs. Q4 2020
U.S. Retail net income for the quarter was $1,374 million (US$1,092
million), an increase of $503
million (US$434 million), or
58% (66% in U.S. dollars), compared with the fourth quarter last
year. The annualized ROE for the quarter was 14.5%, compared with
9.0%, in the fourth quarter last year.
U.S. Retail net income includes contributions from the U.S.
Retail Bank and the Bank's investment in Schwab. Net income for the
quarter from the U.S. Retail Bank and the Bank's investment in
Schwab were $1,128 million
(US$897 million) and $246 million (US$195
million), respectively.
The contribution from the Bank's investment in Schwab of
US$195 million decreased US$60 million, or 24%, compared with the
contribution from the Bank's investment in TD Ameritrade in the
fourth quarter last year.
U.S. Retail Bank net income of US$897
million increased US$494
million, primarily reflecting lower PCL and higher
revenue.
U.S. Retail Bank revenue is derived from personal and business
banking, and wealth management businesses. Revenue for the quarter
was US$2,212 million, an increase of
US$158 million, or 8%, compared with
the fourth quarter last year. Net interest income increased
US$107 million, or 7%, reflecting
accelerated fee amortization from PPP loan forgiveness and growth
in deposit volumes, partially offset by lower deposit margins. Net
interest margin was 2.21%, a decrease of 6 bps, primarily
reflecting lower deposit margins, partially offset by PPP loan
forgiveness. Non-interest income increased US$51 million, or 10%, primarily reflecting
higher valuation of certain investments and fee income growth from
increased customer activity.
Average loan volumes decreased US$11
billion, or 6%, compared with the fourth quarter last year,
reflecting a 1% decline in personal loans, and a 10% decline in
business loans, primarily due to PPP loan forgiveness and paydowns
and lower line usage on commercial loans. Average deposit volumes
increased US$26 billion, or 7%,
reflecting a 16% increase in personal deposit volumes, and an 11%
increase in business deposit volumes, partially offset by a 2%
decrease in sweep deposit volumes.
AUA were US$30 billion as at
October 31, 2021, an increase of
US$6 billion, or 25%, compared with
the fourth quarter last year, reflecting loan and deposit growth.
AUM were US$41 billion as at
October 31, 2021, an increase of
US$2 billion, or 5%, reflecting
market appreciation, partially offset by net asset outflows.
PCL for the quarter was a recovery of US$62 million, lower by US$495 million compared with the fourth quarter
last year. PCL – impaired was US$53
million, a decrease of US$58
million, or 52%, largely related to improved credit
conditions. PCL – performing was a recovery of US$115 million, lower by US$437 million, reflecting a performing allowance
increase in the prior year, and a release this quarter reflecting
improved credit conditions. U.S. Retail PCL including only the
Bank's share of PCL in the U.S. strategic cards portfolio, as an
annualized percentage of credit volume was -0.15%, lower by 116
bps, compared with the fourth quarter last year.
Non-interest expenses for the quarter were US$1,288 million, an increase of US$34 million, or 3%, compared with the fourth
quarter last year, primarily reflecting higher incentive
compensation costs and higher investments in the business,
partially offset by productivity savings.
Income taxes reflect a provision of US$89
million, compared to a recovery of US$36 million in the fourth quarter last year,
higher by US$125 million, primarily
reflecting higher pre-tax income, partially offset by changes to
the estimated liability for uncertain tax positions.
The efficiency ratio for the quarter was 58.2%, compared with
61.1% in the fourth quarter last year.
Quarterly comparison – Q4 2021 vs. Q3 2021
U.S. Retail net income increased $79
million (US$40 million), or 6%
(4% in U.S. dollars), compared with the prior quarter. The
annualized ROE for the quarter was 14.5%, compared to 13.8%, in the
prior quarter.
The contribution from the Bank's investment in Schwab was
US$195 million, an increase of
US$34 million, or 21%, compared with
the prior quarter, primarily reflecting higher net interest
revenue, lower operating expenses, and higher asset management
fees.
U.S. Retail Bank net income for the quarter increased
US$6 million, or 1%, compared with
the prior quarter.
Revenue for the quarter increased US$32
million, or 1%. Net interest income increased US$54 million, or 3%, and net interest margin was
2.21%, an increase of 5 bps, reflecting higher investment income
and accelerated fee amortization from PPP loan forgiveness.
Non-interest income decreased US$22
million, or 4%, primarily reflecting lower losses on
low-income housing investments in the prior quarter, partially
offset by higher valuation of certain investments in the current
quarter.
Average loan volumes decreased US$4
billion, or 2%, compared with the prior quarter, reflecting
a 6% decline in business loans, primarily due to PPP loan
forgiveness and paydowns and lower line usage on commercial loans,
partially offset by a 2% increase in personal loans. Average
deposit volumes were relatively flat, reflecting a 4% increase in
business deposit volumes and 2% increase in personal deposit
volumes, offset by a 3% decrease in sweep deposit volumes.
AUA were US$30 billion as at
October 31, 2021, an increase of
US$1 billion, or 4%, compared with
the prior quarter, reflecting loan and deposit growth. AUM were
US$41 billion as at October 31, 2021, flat compared with prior
quarter.
PCL was a recovery of US$62
million compared with a recovery of US$74 million in the prior quarter. PCL –
impaired was flat compared to prior quarter. PCL – performing was a
recovery of US$115 million, compared
with a recovery of US$127 million in
the prior quarter, largely reflecting continued improvement in
credit conditions. U.S. Retail PCL including only the Bank's share
of PCL in the U.S. strategic cards portfolio, as an annualized
percentage of credit volume was -0.15%, higher by 3 bps.
Non-interest expenses for the quarter increased US$55 million, or 4%, compared with the prior
quarter, reflecting higher marketing expenses and investments in
the business coupled with higher incentive compensation costs.
Income taxes reflect a provision of US$89
million compared to a provision of US$130 million in the prior quarter, a decrease
of US$41 million, primarily
reflecting changes to the estimated liability for uncertain tax
positions.
The efficiency ratio for the quarter was 58.2%, compared with
56.6%, in the prior quarter.
TABLE 11:
WHOLESALE BANKING
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
|
For the three
months ended
|
|
|
October
31
|
|
July 31
|
|
October 31
|
|
|
2021
|
|
2021
|
|
2020
|
|
Net interest income
(TEB)
|
$
|
689
|
|
$
|
632
|
|
$
|
609
|
|
Non-interest
income
|
|
461
|
|
|
451
|
|
|
645
|
|
Total
revenue
|
|
1,150
|
|
|
1,083
|
|
|
1,254
|
|
Provision for
(recovery of) credit losses – impaired
|
|
(14)
|
|
|
–
|
|
|
(19)
|
|
Provision for
(recovery of) credit losses – performing
|
|
(63)
|
|
|
2
|
|
|
13
|
|
Total provision for
(recovery of) credit losses
|
|
(77)
|
|
|
2
|
|
|
(6)
|
|
Non-interest
expenses
|
|
658
|
|
|
635
|
|
|
581
|
|
Provision for
(recovery of) income taxes (TEB)
|
|
149
|
|
|
116
|
|
|
193
|
|
Net
income
|
$
|
420
|
|
$
|
330
|
|
$
|
486
|
|
|
|
|
|
|
|
|
|
|
|
Selected volumes
and ratios
|
|
|
|
|
|
|
|
|
|
Trading-related
revenue (TEB)1
|
$
|
510
|
|
$
|
467
|
|
$
|
761
|
|
Average gross lending
portfolio (billions of Canadian dollars)2
|
|
58.1
|
|
|
59.9
|
|
|
61.0
|
|
Return on common
equity3
|
|
18.6
|
%
|
|
15.7
|
%
|
|
23.0
|
%
|
Efficiency
ratio
|
|
57.2
|
|
|
58.6
|
|
|
46.3
|
|
Average number of
full-time equivalent staff
|
|
4,910
|
|
|
4,839
|
|
|
4,659
|
|
1
|
Trading-related
revenue (TEB) is part of the total Bank's trading-related revenue
(TEB) disclosed in Table 10 in the 2021 MD&A, and is a non-GAAP
financial measure. Refer to "Non-GAAP and Other Financial Measures"
in the "How We Performed" section and the Glossary in the 2021
MD&A, which is incorporated by reference, for additional
information about this metric.
|
2
|
Includes gross loans
and bankers' acceptances relating to Wholesale Banking, excluding
letters of credit, cash collateral, credit default swaps (CDS), and
allowance for credit losses.
|
3
|
Capital allocated to
the business segment was 9% CET1 Capital.
|
Quarterly comparison – Q4 2021 vs. Q4 2020
Wholesale Banking net income for the quarter was $420 million,
a decrease of $66 million, or 14%, compared with the fourth
quarter last year, reflecting lower revenue and higher non-interest
expenses, partially offset by lower PCL.
Wholesale Banking revenue is derived primarily from capital
markets and corporate and investment banking services provided to
corporate, government, and institutional clients. Wholesale Banking
generates revenue from corporate lending, advisory, underwriting,
sales, trading and research, client securitization, trade finance,
cash management, prime services, and trade execution services.
Revenue for the quarter was $1,150 million, a decrease of
$104 million, or 8%, compared with the fourth quarter last
year, primarily reflecting lower trading-related revenue, partially
offset by higher lending revenue, advisory fees, and equity
underwriting.
PCL for the quarter was a recovery of $77 million, compared
with a recovery of $6 million in the fourth quarter last year.
PCL – impaired was a recovery of $14 million. PCL – performing
was a recovery of $63 million, lower by $76 million, primarily reflecting an allowance
release this quarter related to improved credit conditions.
Non-interest expenses were $658 million, an increase of
$77 million, or 13%, compared with the fourth quarter last
year, primarily reflecting higher employee-related costs from
continued investment in Wholesale Banking's U.S. dollar strategy
and higher variable compensation.
Quarterly comparison – Q4 2021 vs. Q3 2021
Wholesale Banking net income for the quarter increased
$90 million, or 27%, compared with the prior quarter,
reflecting higher revenue and lower PCL, partially offset by higher
non-interest expenses.
Revenue for the quarter increased $67 million, or 6%,
primarily reflecting higher trading-related revenue, lending
revenue, and advisory fees.
PCL for the quarter was a recovery of $77
million, lower by $79 million
compared with the prior quarter. PCL – impaired was a recovery of
$14 million. PCL – performing was a recovery of
$63 million, lower by $65
million, largely reflecting improved credit conditions.
Non-interest expenses for the quarter increased
$23 million, or 4%, reflecting higher technology
infrastructure, software, and development costs.
TABLE 12:
CORPORATE
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
|
|
October
31
|
July 31
|
October 31
|
|
|
2021
|
2021
|
2020
|
|
Net income (loss)
– reported
|
$
|
(150)
|
$
|
(205)
|
$
|
1,984
|
|
Adjustments for
items of note
|
|
|
|
|
|
|
|
Amortization of
acquired intangibles before income taxes
|
|
74
|
|
68
|
|
61
|
|
Acquisition and
integration charges related to the Schwab transaction
|
|
22
|
|
24
|
|
–
|
|
Net gain on sale of
the investment in TD Ameritrade
|
|
–
|
|
–
|
|
(1,421)
|
|
Less: impact of
income taxes
|
|
11
|
|
9
|
|
837
|
|
Net income (loss)
– adjusted1
|
$
|
(65)
|
$
|
(122)
|
$
|
(213)
|
|
|
|
|
|
|
|
|
|
Decomposition of
items included in net income (loss) – adjusted
|
|
|
|
|
|
|
|
Net corporate
expenses2
|
$
|
(202)
|
$
|
(169)
|
$
|
(302)
|
|
Other
|
|
137
|
|
47
|
|
89
|
|
Net income (loss)
– adjusted1
|
$
|
(65)
|
$
|
(122)
|
$
|
(213)
|
|
|
|
|
|
|
|
|
|
Selected
volumes
|
|
|
|
|
|
|
|
Average number of
full-time equivalent staff
|
|
17,772
|
|
17,657
|
|
17,849
|
|
1
|
For additional
information about the Bank's use of non-GAAP financial measures,
refer to "Non-GAAP and Other Financial Measures" in the "How We
Performed" section of this document.
|
2
|
For additional
information about this metric, refer to the Glossary in the 2021
MD&A, which is incorporated by reference.
|
Quarterly comparison – Q4 2021 vs. Q4 2020
Corporate segment's reported net loss for the quarter was
$150 million, compared with reported
net income of $1,984 million in the
fourth quarter last year. The year-over-year decrease was primarily
attributable to a net gain on sale of the Bank's investment in TD
Ameritrade of $1,421 million
($2,250 million after-tax) in the
prior year, partially offset by lower net corporate expenses and a
higher contribution from other items. The decrease in net corporate
expenses largely reflects $163
million ($121 million
after-tax) in corporate real estate optimization costs in the prior
year. The increase in other items primarily reflects higher revenue
from treasury and balance sheet management activities this quarter.
The adjusted net loss for the quarter was $65 million, compared with an adjusted net loss
of $213 million in the fourth quarter last year.
Quarterly comparison – Q4 2021 vs. Q3 2021
Corporate segment's reported net loss for the quarter was
$150 million, compared with a
reported net loss of $205 million in
the prior quarter. The quarter-over-quarter decrease reflects a
higher contribution from other items, partially offset by higher
net corporate expenses. The increase in other items primarily
reflects higher revenue from treasury and balance sheet management
activities this quarter. Net corporate expenses increased
$33 million compared to the prior
quarter. The adjusted net loss for the quarter was $65 million, compared with an adjusted net loss
of $122 million in the prior
quarter.
CONSOLIDATED FINANCIAL STATEMENTS
CONSOLIDATED
BALANCE SHEET1
|
|
|
|
|
(millions of Canadian
dollars)
|
|
|
|
As
at
|
|
October
31
|
October 31
|
|
|
2021
|
|
2020
|
ASSETS
|
|
|
Cash and due from
banks
|
$
|
5,931
|
$
|
6,445
|
Interest-bearing
deposits with banks
|
|
159,962
|
|
164,149
|
|
|
165,893
|
|
170,594
|
Trading loans,
securities, and other
|
|
147,590
|
|
148,318
|
Non-trading financial
assets at fair value through profit or loss
|
|
9,390
|
|
8,548
|
Derivatives
|
|
54,427
|
|
54,242
|
Financial assets
designated at fair value through profit or loss
|
|
4,564
|
|
4,739
|
Financial assets at
fair value through other comprehensive income
|
|
79,066
|
|
103,285
|
|
|
295,037
|
|
319,132
|
Debt securities at
amortized cost, net of allowance for credit losses
|
|
268,939
|
|
227,679
|
Securities
purchased under reverse repurchase agreements
|
|
167,284
|
|
169,162
|
Loans
|
|
|
|
|
Residential
mortgages
|
|
268,340
|
|
252,219
|
Consumer instalment
and other personal
|
|
189,864
|
|
185,460
|
Credit
card
|
|
30,738
|
|
32,334
|
Business and
government
|
|
240,070
|
|
255,799
|
|
|
729,012
|
|
725,812
|
Allowance for loan
losses
|
|
(6,390)
|
|
(8,289)
|
Loans, net of
allowance for loan losses
|
|
722,622
|
|
717,523
|
Other
|
|
|
|
|
Customers' liability
under acceptances
|
|
18,448
|
|
14,941
|
Investment in
Schwab
|
|
11,112
|
|
12,174
|
Goodwill
|
|
16,232
|
|
17,148
|
Other
intangibles
|
|
2,123
|
|
2,125
|
Land, buildings,
equipment, and other depreciable assets
|
|
9,181
|
|
10,136
|
Deferred tax
assets
|
|
2,265
|
|
2,444
|
Amounts receivable
from brokers, dealers, and clients
|
|
32,357
|
|
33,951
|
Other
assets
|
|
17,179
|
|
18,856
|
|
|
108,897
|
|
111,775
|
Total
assets
|
$
|
1,728,672
|
$
|
1,715,865
|
LIABILITIES
|
|
|
|
|
Trading
deposits
|
$
|
22,891
|
$
|
19,177
|
Derivatives
|
|
57,122
|
|
53,203
|
Securitization
liabilities at fair value
|
|
13,505
|
|
13,718
|
Financial liabilities
designated at fair value through profit or loss
|
|
113,988
|
|
59,665
|
|
|
207,506
|
|
145,763
|
Deposits
|
|
|
|
|
Personal
|
|
633,498
|
|
625,200
|
Banks
|
|
20,917
|
|
28,969
|
Business and
government
|
|
470,710
|
|
481,164
|
|
|
1,125,125
|
|
1,135,333
|
Other
|
|
|
|
|
Acceptances
|
|
18,448
|
|
14,941
|
Obligations related
to securities sold short
|
|
42,384
|
|
34,999
|
Obligations related
to securities sold under repurchase agreements
|
|
144,097
|
|
188,876
|
Securitization
liabilities at amortized cost
|
|
15,262
|
|
15,768
|
Amounts payable to
brokers, dealers, and clients
|
|
28,993
|
|
35,143
|
Insurance-related
liabilities
|
|
7,676
|
|
7,590
|
Other
liabilities
|
|
28,133
|
|
30,476
|
|
|
284,993
|
|
327,793
|
Subordinated notes
and debentures
|
|
11,230
|
|
11,477
|
Total
liabilities
|
|
1,628,854
|
|
1,620,366
|
EQUITY
|
|
|
|
|
Shareholders'
Equity
|
|
|
|
|
Common
shares
|
|
23,066
|
|
22,487
|
Preferred shares and
other equity instruments
|
|
5,700
|
|
5,650
|
Treasury – common
shares
|
|
(152)
|
|
(37)
|
Treasury – preferred
shares and other equity instruments
|
|
(10)
|
|
(4)
|
Contributed
surplus
|
|
173
|
|
121
|
Retained
earnings
|
|
63,944
|
|
53,845
|
Accumulated other
comprehensive income (loss)
|
|
7,097
|
|
13,437
|
Total
equity
|
|
99,818
|
|
95,499
|
Total liabilities
and equity
|
$
|
1,728,672
|
$
|
1,715,865
|
1
|
The amounts as at
October 31, 2021 and October 31, 2020, have been derived
from the audited financial statements.
|
CONSOLIDATED
STATEMENT OF INCOME1,2
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars, except as noted)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
2021
|
2020
|
2021
|
2020
|
Interest
income3
|
|
|
|
|
|
|
|
|
Loans
|
$
|
6,009
|
$
|
6,339
|
$
|
23,959
|
$
|
28,337
|
Securities
|
|
|
|
|
|
|
|
|
|
Interest
|
|
960
|
|
1,013
|
|
3,721
|
|
5,432
|
|
Dividends
|
|
394
|
|
403
|
|
1,594
|
|
1,714
|
Deposits with
banks
|
|
76
|
|
70
|
|
307
|
|
350
|
|
|
7,439
|
|
7,825
|
|
29,581
|
|
35,833
|
Interest
expense
|
|
|
|
|
|
|
|
|
Deposits
|
|
776
|
|
1,286
|
|
3,742
|
|
8,447
|
Securitization
liabilities
|
|
88
|
|
75
|
|
343
|
|
379
|
Subordinated notes
and debentures
|
|
93
|
|
100
|
|
374
|
|
426
|
Other
|
|
220
|
|
337
|
|
991
|
|
2,084
|
|
|
1,177
|
|
1,798
|
|
5,450
|
|
11,336
|
Net interest
income
|
|
6,262
|
|
6,027
|
|
24,131
|
|
24,497
|
Non-interest
income
|
|
|
|
|
|
|
|
|
Investment and
securities services
|
|
1,565
|
|
1,341
|
|
6,179
|
|
5,341
|
Credit
fees
|
|
374
|
|
354
|
|
1,453
|
|
1,400
|
Net securities gain
(loss)
|
|
11
|
|
32
|
|
14
|
|
40
|
Trading income
(loss)
|
|
(12)
|
|
246
|
|
313
|
|
1,404
|
Income (loss) from
non-trading financial instruments at fair value through profit or
loss
|
|
44
|
|
11
|
|
228
|
|
14
|
Income (loss) from
financial instruments designated at fair value through profit or
loss
|
|
(156)
|
|
(27)
|
|
(401)
|
|
55
|
Service
charges
|
|
711
|
|
633
|
|
2,655
|
|
2,593
|
Card
services
|
|
651
|
|
566
|
|
2,435
|
|
2,154
|
Insurance
revenue
|
|
1,248
|
|
1,130
|
|
4,877
|
|
4,565
|
Other income
(loss)
|
|
243
|
|
1,531
|
|
809
|
|
1,583
|
|
|
4,679
|
|
5,817
|
|
18,562
|
|
19,149
|
Total
revenue
|
|
10,941
|
|
11,844
|
|
42,693
|
|
43,646
|
Provision for
(recovery of) credit losses
|
|
(123)
|
|
917
|
|
(224)
|
|
7,242
|
Insurance claims
and related expenses
|
|
650
|
|
630
|
|
2,707
|
|
2,886
|
Non-interest
expenses
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
3,051
|
|
2,882
|
|
12,378
|
|
11,893
|
Occupancy, including
depreciation
|
|
440
|
|
640
|
|
1,882
|
|
1,990
|
Technology and
equipment, including depreciation
|
|
449
|
|
442
|
|
1,694
|
|
1,634
|
Amortization of other
intangibles
|
|
179
|
|
207
|
|
706
|
|
817
|
Communication and
marketing
|
|
378
|
|
338
|
|
1,203
|
|
1,187
|
Restructuring charges
(recovery)
|
|
1
|
|
(8)
|
|
47
|
|
(16)
|
Brokerage-related and
sub-advisory fees
|
|
112
|
|
94
|
|
427
|
|
362
|
Professional,
advisory and outside services
|
|
568
|
|
435
|
|
1,620
|
|
1,451
|
Other
|
|
769
|
|
679
|
|
3,119
|
|
2,286
|
|
|
5,947
|
|
5,709
|
|
23,076
|
|
21,604
|
Income before
income taxes and share of net income from investment
|
|
|
|
|
|
|
|
|
|
in Schwab
and TD Ameritrade
|
|
4,467
|
|
4,588
|
|
17,134
|
|
11,914
|
Provision for
(recovery of) income taxes
|
|
910
|
|
(202)
|
|
3,621
|
|
1,152
|
Share of net
income from investment in Schwab and TD Ameritrade
|
|
224
|
|
353
|
|
785
|
|
1,133
|
Net
income
|
|
3,781
|
|
5,143
|
|
14,298
|
|
11,895
|
Preferred
dividends and distributions on other equity
instruments
|
|
63
|
|
64
|
|
249
|
|
267
|
Net income
available to common shareholders
|
$
|
3,718
|
$
|
5,079
|
$
|
14,049
|
$
|
11,628
|
Earnings per
share (Canadian dollars)
|
|
|
|
|
|
|
|
|
Basic
|
$
|
2.04
|
$
|
2.80
|
$
|
7.73
|
$
|
6.43
|
Diluted
|
|
2.04
|
|
2.80
|
|
7.72
|
|
6.43
|
Dividends per
common share (Canadian dollars)
|
|
0.79
|
|
0.79
|
|
3.16
|
|
3.11
|
1
|
Certain comparative
amounts have been reclassified to conform with the presentation
adopted in the current period.
|
2
|
The amounts for the
three months ended October 31, 2021, and October 31,
2020, have been derived from unaudited financial statements. The
amounts for the twelve months ended October 31, 2021 and
October 31, 2020, have been derived from the audited financial
statements.
|
3
|
Includes
$6,535 million and $26,217 million, for the three and twelve
months ended October 31, 2021, respectively (three and twelve
months ended October 31, 2020 – $8,766 million and
$32,476 million, respectively) which have been calculated
based on the effective interest rate method.
|
CONSOLIDATED
STATEMENT OF COMPREHENSIVE
INCOME1,2,3
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
|
|
2021
|
2020
|
2021
|
2020
|
Net
income
|
$
|
3,781
|
$
|
5,143
|
$
|
14,298
|
$
|
11,895
|
Other
comprehensive income (loss), net of income taxes
|
|
|
|
|
|
|
|
|
Items that will
be subsequently reclassified to net income
|
|
|
|
|
|
|
|
|
|
Net change in
unrealized gains (losses) on financial assets at fair value
through
|
|
|
|
|
|
|
|
|
|
|
other
comprehensive income
|
|
|
|
|
|
|
|
|
|
Change in unrealized
gains (losses)
|
|
(94)
|
|
69
|
|
25
|
|
257
|
|
Reclassification to
earnings of net losses (gains)
|
|
(9)
|
|
(2)
|
|
(59)
|
|
(6)
|
|
Changes in allowance
for credit losses recognized in earnings
|
|
3
|
|
1
|
|
1
|
|
2
|
|
|
|
|
(100)
|
|
68
|
|
(33)
|
|
253
|
|
Net change in
unrealized foreign currency translation gains (losses)
on
|
|
|
|
|
|
|
|
|
|
|
Investments in
foreign operations, net of hedging activities
|
|
|
|
|
|
|
|
|
|
Unrealized gains
(losses)
|
|
(699)
|
|
(441)
|
|
(6,082)
|
|
855
|
|
Reclassification to
earnings of net losses (gains)
|
|
–
|
|
(1,531)
|
|
–
|
|
(1,531)
|
|
Net gains (losses) on
hedges
|
|
230
|
|
140
|
|
1,955
|
|
(291)
|
|
Reclassification to
earnings of net losses (gains) on hedges
|
|
–
|
|
1,531
|
|
–
|
|
1,531
|
|
|
|
|
(469)
|
|
(301)
|
|
(4,127)
|
|
564
|
|
Net change in
gains (losses) on derivatives designated as cash flow
hedges
|
|
|
|
|
|
|
|
|
|
Change in gains
(losses)
|
|
(1,498)
|
|
(379)
|
|
(2,411)
|
|
3,565
|
|
Reclassification to
earnings of losses (gains)
|
|
144
|
|
(168)
|
|
515
|
|
(1,236)
|
|
|
|
|
(1,354)
|
|
(547)
|
|
(1,896)
|
|
2,329
|
|
Share of other
comprehensive income (loss) from investment in Schwab and TD
Ameritrade
|
|
(198)
|
|
(86)
|
|
(768)
|
|
(27)
|
Items that will
not be subsequently reclassified to net income
|
|
|
|
|
|
|
|
|
Actuarial gains
(losses) on employee benefit plans
|
|
487
|
|
278
|
|
1,787
|
|
(390)
|
Change in net
unrealized gains (losses) on equity securities designated at fair
value through
|
|
|
|
|
|
|
|
|
|
other comprehensive
income
|
|
40
|
|
(22)
|
|
433
|
|
(212)
|
Gains (losses) from
changes in fair value due to credit risk on financial liabilities
designated
|
|
|
|
|
|
|
|
|
|
at fair value through
profit or loss
|
|
14
|
|
18
|
|
51
|
|
(51)
|
|
|
|
|
541
|
|
274
|
|
2,271
|
|
(653)
|
Total other
comprehensive income (loss), net of income taxes
|
|
(1,580)
|
|
(592)
|
|
(4,553)
|
|
2,466
|
Total
comprehensive income (loss), net of income taxes
|
$
|
2,201
|
$
|
4,551
|
$
|
9,745
|
$
|
14,361
|
Attributable
to:
|
|
|
|
|
|
|
|
|
|
Common
shareholders
|
$
|
2,138
|
$
|
4,487
|
$
|
9,496
|
$
|
14,094
|
|
Preferred
shareholders and other equity instrument holders
|
|
63
|
|
64
|
|
249
|
|
267
|
1
|
Certain comparative
amounts have been reclassified to conform with the presentation
adopted in the current period.
|
2
|
The amounts for the
three months ended October 31, 2021, and October 31,
2020, have been derived from unaudited financial statements. The
amounts for the twelve months ended October 31, 2021 and
October 31, 2020, have been derived from the audited financial
statements.
|
3
|
The amounts are net
of income tax provisions (recoveries) presented in the following
table.
|
Income Tax
Provisions (Recoveries) in the Consolidated Statement of
Comprehensive Income1,2
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Change in unrealized
gains (losses) on financial assets at fair value through
|
|
|
|
|
|
|
|
|
|
other comprehensive
income
|
$
|
(30)
|
$
|
(6)
|
$
|
2
|
$
|
78
|
Less:
Reclassification to earnings of net losses (gains) in respect of
financial assets at fair value
|
|
|
|
|
|
|
|
|
|
through other
comprehensive income
|
|
2
|
|
1
|
|
16
|
|
1
|
Changes in allowance
for credit losses on financial assets at fair value through other
comprehensive
|
|
|
|
|
|
|
|
|
|
comprehensive income
recognized in earnings
|
|
–
|
|
–
|
|
–
|
|
1
|
Net gains (losses) on
hedges of investments in foreign operations
|
|
82
|
|
52
|
|
693
|
|
(102)
|
Less:
Reclassification to earnings of net losses (gains) on hedges of
investments in foreign
|
|
|
|
|
|
|
|
|
|
operations
|
|
–
|
|
(545)
|
|
–
|
|
(545)
|
Change in gains
(losses) on derivatives designated as cash flow hedges
|
|
(518)
|
|
(540)
|
|
(761)
|
|
947
|
Less:
Reclassification to earnings of losses (gains) on cash flow
hedges
|
|
(41)
|
|
(368)
|
|
(92)
|
|
121
|
Actuarial gains
(losses) on employee benefit plans
|
|
172
|
|
98
|
|
635
|
|
(140)
|
Change in net
unrealized gains (losses) on equity securities designated at fair
value
|
|
|
|
|
|
|
|
|
|
through other
comprehensive income
|
|
15
|
|
(8)
|
|
154
|
|
(78)
|
Gains (losses) from
changes in fair value due to credit risk on financial liabilities
designated
|
|
|
|
|
|
|
|
|
|
at fair value through
profit or loss
|
|
5
|
|
7
|
|
18
|
|
(18)
|
Total income
taxes
|
$
|
(235)
|
$
|
515
|
$
|
817
|
$
|
1,111
|
1
|
Certain comparative
amounts have been restated to conform with the presentation adopted
in the current period.
|
2
|
The amounts for the
three months ended October 31, 2021, and October 31,
2020, have been derived from unaudited financial statements. The
amounts for the twelve months ended October 31, 2021 and
October 31, 2020, have been derived from the audited financial
statements.
|
CONSOLIDATED
STATEMENT OF CHANGES IN EQUITY1,2
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
2021
|
2020
|
2021
|
2020
|
Common
shares
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
$
|
22,945
|
$
|
22,361
|
$
|
22,487
|
$
|
21,713
|
Proceeds from shares
issued on exercise of stock options
|
|
19
|
|
14
|
|
165
|
|
79
|
Shares issued as a
result of dividend reinvestment plan
|
|
102
|
|
112
|
|
414
|
|
838
|
Purchase of shares
for cancellation and other
|
|
–
|
|
–
|
|
–
|
|
(143)
|
Balance at end of
period
|
|
23,066
|
|
22,487
|
|
23,066
|
|
22,487
|
Preferred shares
and other equity instruments
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
6,700
|
|
5,800
|
|
5,650
|
|
5,800
|
Issue of shares and
other equity instruments
|
|
–
|
|
–
|
|
1,750
|
|
–
|
Redemption of shares
and other equity instruments
|
|
(1,000)
|
|
(150)
|
|
(1,700)
|
|
(150)
|
Balance at end of
period
|
|
5,700
|
|
5,650
|
|
5,700
|
|
5,650
|
Treasury – common
shares
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
(189)
|
|
(59)
|
|
(37)
|
|
(41)
|
Purchase of
shares
|
|
(2,461)
|
|
(1,965)
|
|
(10,859)
|
|
(8,752)
|
Sale of
shares
|
|
2,498
|
|
1,987
|
|
10,744
|
|
8,756
|
Balance at end of
period
|
|
(152)
|
|
(37)
|
|
(152)
|
|
(37)
|
Treasury –
preferred shares and other equity instruments
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
(5)
|
|
(5)
|
|
(4)
|
|
(6)
|
Purchase of shares
and other equity instruments
|
|
(98)
|
|
(24)
|
|
(205)
|
|
(122)
|
Sale of shares and
other equity instruments
|
|
93
|
|
25
|
|
199
|
|
124
|
Balance at end of
period
|
|
(10)
|
|
(4)
|
|
(10)
|
|
(4)
|
Contributed
surplus
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
125
|
|
128
|
|
121
|
|
157
|
Net premium
(discount) on sale of treasury instruments
|
|
5
|
|
–
|
|
–
|
|
(31)
|
Issuance of stock
options, net of options exercised
|
|
3
|
|
–
|
|
6
|
|
–
|
Other
|
|
40
|
|
(7)
|
|
46
|
|
(5)
|
Balance at end of
period
|
|
173
|
|
121
|
|
173
|
|
121
|
Retained
earnings
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
61,167
|
|
49,934
|
|
53,845
|
|
49,497
|
Impact on adoption of
IFRS 16, Leases
|
|
n/a3
|
|
n/a
|
|
n/a
|
|
(553)
|
Net income
attributable to equity instrument holders
|
|
3,781
|
|
5,143
|
|
14,298
|
|
11,895
|
Common
dividends
|
|
(1,437)
|
|
(1,431)
|
|
(5,741)
|
|
(5,614)
|
Preferred dividends
and distributions on other equity instruments
|
|
(63)
|
|
(64)
|
|
(249)
|
|
(267)
|
Net premium on
repurchase of common shares and redemption of preferred shares and
other equity instruments
|
|
–
|
|
(6)
|
|
(1)
|
|
(710)
|
Share and other
equity instrument issue expenses
|
|
–
|
|
–
|
|
(5)
|
|
–
|
Actuarial gains
(losses) on employee benefit plans
|
|
487
|
|
278
|
|
1,787
|
|
(390)
|
Realized gains
(losses) on equity securities designated at fair value through
other comprehensive income
|
|
9
|
|
(9)
|
|
10
|
|
(13)
|
Balance at end of
period
|
|
63,944
|
|
53,845
|
|
63,944
|
|
53,845
|
Accumulated other
comprehensive income (loss)
|
|
|
|
|
|
|
|
|
Net unrealized
gain (loss) on financial assets at fair value through other
comprehensive income:
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
610
|
|
475
|
|
543
|
|
290
|
Other comprehensive
income (loss)
|
|
(103)
|
|
67
|
|
(34)
|
|
251
|
Allowance for credit
losses
|
|
3
|
|
1
|
|
1
|
|
2
|
Balance at end of
period
|
|
510
|
|
543
|
|
510
|
|
543
|
Net unrealized
gain (loss) on equity securities designated at fair value through
other comprehensive income:
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
141
|
|
(230)
|
|
(252)
|
|
(40)
|
Other comprehensive
income (loss)
|
|
49
|
|
(31)
|
|
443
|
|
(225)
|
Reclassification of
loss (gain) to retained earnings
|
|
(9)
|
|
9
|
|
(10)
|
|
13
|
Balance at end of
period
|
|
181
|
|
(252)
|
|
181
|
|
(252)
|
Gain (loss) from
changes in fair value due to credit risk on financial liabilities
designated at fair value through
|
|
|
|
|
|
|
|
|
|
profit or
loss:
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
–
|
|
(55)
|
|
(37)
|
|
14
|
Other comprehensive
income (loss)
|
|
14
|
|
18
|
|
51
|
|
(51)
|
Balance at end of
period
|
|
14
|
|
(37)
|
|
14
|
|
(37)
|
Net unrealized
foreign currency translation gain (loss) on investments in foreign
operations, net of hedging activities:
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
5,699
|
|
9,658
|
|
9,357
|
|
8,793
|
Other comprehensive
income (loss)
|
|
(469)
|
|
(301)
|
|
(4,127)
|
|
564
|
Balance at end of
period
|
|
5,230
|
|
9,357
|
|
5,230
|
|
9,357
|
Net gain (loss) on
derivatives designated as cash flow hedges:
|
|
|
|
|
|
|
|
|
Balance at beginning
of period
|
|
3,284
|
|
4,373
|
|
3,826
|
|
1,497
|
Other comprehensive
income (loss)
|
|
(1,354)
|
|
(547)
|
|
(1,896)
|
|
2,329
|
Balance at end of
period
|
|
1,930
|
|
3,826
|
|
1,930
|
|
3,826
|
Share of
accumulated other comprehensive income (loss) from Investment in
Schwab and TD Ameritrade
|
|
(768)
|
|
–
|
|
(768)
|
|
–
|
Total accumulated
other comprehensive income
|
|
7,097
|
|
13,437
|
|
7,097
|
|
13,437
|
Total
equity
|
$
|
99,818
|
$
|
95,499
|
$
|
99,818
|
$
|
95,499
|
1
|
Certain comparative
amounts have been reclassified to conform with the presentation
adopted in the current period.
|
2
|
The amounts for the
three months ended October 31, 2021, and October 31, 2020, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2021 and October 31, 2020, have
been derived from the audited financial statements.
|
3
|
Not
applicable.
|
CONSOLIDATED
STATEMENT OF CASH FLOWS1,2
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
For the three
months ended
|
For the twelve
months ended
|
|
|
October
31
|
October 31
|
October
31
|
October 31
|
|
|
2021
|
2020
|
2021
|
2020
|
Cash flows from
(used in) operating activities
|
|
|
|
|
|
|
|
|
Net income
|
$
|
3,781
|
$
|
5,143
|
$
|
14,298
|
$
|
11,895
|
Adjustments to
determine net cash flows from (used in) operating
activities
|
|
|
|
|
|
|
|
|
|
Provision for
(recovery of) credit losses
|
|
(123)
|
|
917
|
|
(224)
|
|
7,242
|
|
Depreciation
|
|
296
|
|
429
|
|
1,360
|
|
1,324
|
|
Amortization of other
intangibles
|
|
179
|
|
207
|
|
706
|
|
817
|
|
Net securities losses
(gains)
|
|
(11)
|
|
(32)
|
|
(14)
|
|
(40)
|
|
Share of net income
from investment in Schwab and TD Ameritrade
|
|
(224)
|
|
(353)
|
|
(785)
|
|
(1,133)
|
|
Net gain on sale of
the investment in TD Ameritrade
|
|
–
|
|
(1,491)
|
|
–
|
|
(1,491)
|
|
Deferred
taxes
|
|
99
|
|
(435)
|
|
258
|
|
(1,065)
|
Changes in operating
assets and liabilities
|
|
|
|
|
|
|
|
|
|
Interest receivable
and payable
|
|
(30)
|
|
27
|
|
(288)
|
|
(108)
|
|
Securities sold under
repurchase agreements
|
|
(11,766)
|
|
16,995
|
|
(44,779)
|
|
63,020
|
|
Securities purchased
under reverse repurchase agreements
|
|
(5,130)
|
|
(9,490)
|
|
1,878
|
|
(3,227)
|
|
Securities sold
short
|
|
5,661
|
|
1,216
|
|
7,030
|
|
5,343
|
|
Trading loans and
securities
|
|
(152)
|
|
(3,547)
|
|
1,177
|
|
(2,318)
|
|
Loans net of
securitization and sales
|
|
(3,314)
|
|
3,012
|
|
(3,660)
|
|
(39,641)
|
|
Deposits
|
|
(110)
|
|
41,114
|
|
(6,494)
|
|
240,648
|
|
Derivatives
|
|
1,722
|
|
(4,404)
|
|
3,734
|
|
(2,196)
|
|
Non-trading financial
assets at fair value through profit or loss
|
|
(138)
|
|
2,127
|
|
(842)
|
|
(2,045)
|
|
Financial assets and
liabilities designated at fair value through profit or
loss
|
|
21,701
|
|
(39,028)
|
|
54,498
|
|
(46,165)
|
|
Securitization
liabilities
|
|
(138)
|
|
991
|
|
(719)
|
|
2,342
|
|
Current
taxes
|
|
(682)
|
|
82
|
|
239
|
|
280
|
|
Brokers, dealers and
clients amounts receivable and payable
|
|
(3,968)
|
|
3,745
|
|
(4,592)
|
|
(1,979)
|
|
Other, including
unrealized foreign currency translation (gains) losses
|
|
6,472
|
|
3,735
|
|
27,348
|
|
(1,896)
|
Net cash from (used
in) operating activities
|
|
14,125
|
|
20,960
|
|
50,129
|
|
229,607
|
Cash flows from
(used in) financing activities
|
|
|
|
|
|
|
|
|
Issuance of
subordinated notes and debentures
|
|
–
|
|
–
|
|
–
|
|
3,000
|
Redemption or
repurchase of subordinated notes and debentures
|
|
(11)
|
|
(968)
|
|
(7)
|
|
(2,530)
|
Common shares issued,
net
|
|
17
|
|
12
|
|
145
|
|
68
|
Preferred shares and
other equity instruments issued
|
|
–
|
|
–
|
|
1,745
|
|
–
|
Repurchase of common
shares
|
|
–
|
|
–
|
|
–
|
|
(847)
|
Redemption of
preferred shares and other equity instruments
|
|
–
|
|
(156)
|
|
(700)
|
|
(156)
|
Sale of treasury
shares and other equity instruments
|
|
2,596
|
|
2,012
|
|
10,943
|
|
8,849
|
Purchase of treasury
shares and other equity instruments
|
|
(2,559)
|
|
(1,989)
|
|
(11,064)
|
|
(8,874)
|
Dividends paid on
shares and distributions paid on other equity
instruments
|
|
(1,387)
|
|
–
|
|
(5,555)
|
|
(3,660)
|
Repayment of lease
liabilities
|
|
(102)
|
|
(155)
|
|
(543)
|
|
(596)
|
Net cash from (used
in) financing activities
|
|
(1,446)
|
|
(1,244)
|
|
(5,036)
|
|
(4,746)
|
Cash flows from
(used in) investing activities
|
|
|
|
|
|
|
|
|
Interest-bearing
deposits with banks
|
|
6,967
|
|
(2,792)
|
|
(729)
|
|
(138,266)
|
Activities in
financial assets at fair value through other comprehensive
income
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(5,526)
|
|
(4,927)
|
|
(21,056)
|
|
(50,569)
|
|
Proceeds from
maturities
|
|
6,631
|
|
16,165
|
|
33,541
|
|
49,684
|
|
Proceeds from
sales
|
|
2,594
|
|
2,252
|
|
5,363
|
|
11,005
|
Activities in debt
securities at amortized cost
|
|
|
|
|
|
|
|
|
|
Purchases
|
|
(36,360)
|
|
(53,552)
|
|
(153,896)
|
|
(146,703)
|
|
Proceeds from
maturities
|
|
12,888
|
|
23,530
|
|
92,131
|
|
51,400
|
|
Proceeds from
sales
|
|
652
|
|
981
|
|
2,365
|
|
1,391
|
Net purchases of
land, buildings, equipment, other depreciable assets, and other
intangibles
|
|
(358)
|
|
(320)
|
|
(1,129)
|
|
(1,261)
|
Net cash acquired
from (paid for) divestitures and acquisitions
|
|
–
|
|
–
|
|
(1,858)
|
|
–
|
Net cash from (used
in) investing activities
|
|
(12,512)
|
|
(18,663)
|
|
(45,268)
|
|
(223,319)
|
Effect of exchange
rate changes on cash and due from banks
|
|
(53)
|
|
(18)
|
|
(339)
|
|
40
|
Net increase
(decrease) in cash and due from banks
|
|
114
|
|
1,035
|
|
(514)
|
|
1,582
|
Cash and due from
banks at beginning of period
|
|
5,817
|
|
5,410
|
|
6,445
|
|
4,863
|
Cash and due from
banks at end of period
|
$
|
5,931
|
$
|
6,445
|
$
|
5,931
|
$
|
6,445
|
Supplementary
disclosure of cash flows from operating activities
|
|
|
|
|
|
|
|
|
Amount of income
taxes paid (refunded) during the period
|
$
|
1,590
|
$
|
743
|
$
|
4,071
|
$
|
2,285
|
Amount of interest
paid during the period
|
|
1,136
|
|
1,710
|
|
5,878
|
|
11,587
|
Amount of interest
received during the period
|
|
6,974
|
|
7,360
|
|
28,127
|
|
34,262
|
Amount of dividends
received during the period
|
|
385
|
|
380
|
|
1,614
|
|
1,675
|
1
|
Certain comparative
amounts have been reclassified to conform with the presentation
adopted in the current period.
|
2
|
The amounts for the
three months ended October 31, 2021, and October 31, 2020, have
been derived from unaudited financial statements. The amounts for
the twelve months ended October 31, 2021 and October 31, 2020, have
been derived from the audited financial statements.
|
Appendix A – Segmented Information
For management
reporting purposes, the Bank reports its results under three key
business segments: Canadian Retail, which includes the results of
the Canadian personal and commercial banking businesses, Canadian
credit cards, TD Auto Finance Canada and Canadian wealth and
insurance businesses; U.S. Retail, which includes the results of
the U.S. personal and commercial banking businesses, U.S. credit
cards, TD Auto Finance U.S., U.S. wealth business, and the Bank's
investment in Schwab; and Wholesale Banking. The Bank's other
activities are grouped into the Corporate segment.
Results for these segments for the three and twelve months ended
October 31, 2021 and October 31,
2020 are presented in the following tables.
Results by
Business Segment1,2,3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(millions of Canadian
dollars)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Canadian
Retail
|
U.S.
Retail
|
Wholesale
Banking4
|
Corporate4
|
Total
|
|
|
|
|
For the three
months ended October 31
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net interest income
(loss)
|
$
|
3,062
|
$
|
2,982
|
$
|
2,103
|
$
|
2,071
|
$
|
689
|
$
|
609
|
$
|
408
|
$
|
365
|
$
|
6,262
|
$
|
6,027
|
Non-interest income
(loss)
|
|
3,458
|
|
3,047
|
|
677
|
|
646
|
|
461
|
|
645
|
|
83
|
|
1,479
|
|
4,679
|
|
5,817
|
Total
revenue
|
|
6,520
|
|
6,029
|
|
2,780
|
|
2,717
|
|
1,150
|
|
1,254
|
|
491
|
|
1,844
|
|
10,941
|
|
11,844
|
Provision for
(recovery of) credit losses
|
|
53
|
|
251
|
|
(76)
|
|
572
|
|
(77)
|
|
(6)
|
|
(23)
|
|
100
|
|
(123)
|
|
917
|
Insurance claims and
related expenses
|
|
650
|
|
630
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
650
|
|
630
|
Non-interest
expenses
|
|
2,912
|
|
2,684
|
|
1,617
|
|
1,660
|
|
658
|
|
581
|
|
760
|
|
784
|
|
5,947
|
|
5,709
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and share of net
income from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in Schwab
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TD
Ameritrade
|
|
2,905
|
|
2,464
|
|
1,239
|
|
485
|
|
569
|
|
679
|
|
(246)
|
|
960
|
|
4,467
|
|
4,588
|
Provision for
(recovery of) income taxes
|
|
768
|
|
662
|
|
111
|
|
(47)
|
|
149
|
|
193
|
|
(118)
|
|
(1,010)
|
|
910
|
|
(202)
|
Share of net income
from investment in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schwab and TD
Ameritrade5,6
|
|
–
|
|
–
|
|
246
|
|
339
|
|
–
|
|
–
|
|
(22)
|
|
14
|
|
224
|
|
353
|
Net income
(loss)
|
$
|
2,137
|
$
|
1,802
|
$
|
1,374
|
$
|
871
|
$
|
420
|
$
|
486
|
$
|
(150)
|
$
|
1,984
|
$
|
3,781
|
$
|
5,143
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve
months ended October 31
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Net interest income
(loss)
|
$
|
11,957
|
$
|
12,061
|
$
|
8,074
|
$
|
8,834
|
$
|
2,630
|
$
|
1,990
|
$
|
1,470
|
$
|
1,612
|
$
|
24,131
|
$
|
24,497
|
Non-interest income
(loss)
|
|
13,549
|
|
12,272
|
|
2,684
|
|
2,438
|
|
2,070
|
|
2,968
|
|
259
|
|
1,471
|
|
18,562
|
|
19,149
|
Total
revenue
|
|
25,506
|
|
24,333
|
|
10,758
|
|
11,272
|
|
4,700
|
|
4,958
|
|
1,729
|
|
3,083
|
|
42,693
|
|
43,646
|
Provision for
(recovery of) credit losses
|
|
258
|
|
2,746
|
|
(250)
|
|
2,925
|
|
(118)
|
|
508
|
|
(114)
|
|
1,063
|
|
(224)
|
|
7,242
|
Insurance claims and
related expenses
|
|
2,707
|
|
2,886
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
–
|
|
2,707
|
|
2,886
|
Non-interest
expenses
|
|
11,003
|
|
10,441
|
|
6,417
|
|
6,579
|
|
2,709
|
|
2,518
|
|
2,947
|
|
2,066
|
|
23,076
|
|
21,604
|
Income (loss) before
income taxes
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
and share of net
income from
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
investment in Schwab
and
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TD
Ameritrade
|
|
11,538
|
|
8,260
|
|
4,591
|
|
1,768
|
|
2,109
|
|
1,932
|
|
(1,104)
|
|
(46)
|
|
17,134
|
|
11,914
|
Provision for
(recovery of) income taxes
|
|
3,057
|
|
2,234
|
|
504
|
|
(167)
|
|
539
|
|
514
|
|
(479)
|
|
(1,429)
|
|
3,621
|
|
1,152
|
Share of net income
from investment in
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schwab and TD
Ameritrade5,6
|
|
–
|
|
–
|
|
898
|
|
1,091
|
|
–
|
|
–
|
|
(113)
|
|
42
|
|
785
|
|
1,133
|
Net income
(loss)
|
$
|
8,481
|
$
|
6,026
|
$
|
4,985
|
$
|
3,026
|
$
|
1,570
|
$
|
1,418
|
$
|
(738)
|
$
|
1,425
|
$
|
14,298
|
$
|
11,895
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
As at October
31
|
|
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
|
2021
|
|
2020
|
Total
assets7
|
$
|
509,436
|
$
|
472,370
|
$
|
559,503
|
$
|
566,629
|
$
|
514,681
|
$
|
512,886
|
$
|
145,052
|
$
|
163,980
|
$
|
1,728,672
|
$
|
1,715,865
|
1
|
Certain comparative
amounts have been reclassified to conform with the presentation
adopted in the current period.
|
2
|
The amounts for the
three months ended October 31, 2021 and October 31, 2020
have been derived from the unaudited financial statements. The
amounts for the twelve months ended October 31, 2021 and
October 31, 2020 have been derived from the audited financial
statements.
|
3
|
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.
|
4
|
Net interest income
within Wholesale Banking is calculated on a TEB. The TEB adjustment
reflected in Wholesale Banking is reversed in the Corporate
segment.
|
5
|
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.
|
6
|
The Bank's share of
Schwab's and TD Ameritrade's earnings is reported with a one-month
lag. Refer to Note 12 for further details.
|
7
|
Total assets as at
October 31, 2021 and October 31, 2020 have been derived from the
audited financial statements.
|
SHAREHOLDER AND INVESTOR INFORMATION
Shareholder Services
If
you:
|
And your inquiry
relates to:
|
Please
contact:
|
Are a registered
shareholder (your name appears on your TD share
certificate)
|
Missing dividends,
lost share certificates, estate questions, address changes to the
share register, dividend bank account changes, the dividend
reinvestment plan, eliminating duplicate mailings of shareholder
materials, or stopping (or resuming) receiving annual and quarterly
reports
|
Transfer
Agent: TMX Trust
Company
P.O. Box 700, Station B Montréal, Québec H3B 3K3 1-800-387-0825 (Canada and U.S.
only) or
416-682-3860 Facsimile:
1-888-249-6189 inquiries@astfinancial.com or
www.astfinancial.com/ca-en
|
Hold your TD shares
through the Direct
Registration System in
the United States
|
Missing dividends,
lost share certificates, estate questions, address changes to the
share register, eliminating duplicate mailings of shareholder
materials or stopping (or resuming) receiving annual and quarterly
reports
|
Co-Transfer Agent
and Registrar: Computershare
P.O. Box 505000 Louisville, KY
40233 or Computershare 462
South 4th Street, Suite 1600 Louisville, KY 40202 1-866-233-4836 TDD for hearing impaired:
1-800-231-5469 Shareholders
outside of U.S.: 201-680-6578 TDD shareholders outside of U.S.: 201-680-6610
www.computershare.com/investor
|
Beneficially
own TD shares that are held in the name of an intermediary,
such as a bank, a trust company, a securities broker, or other
nominee
|
Your TD shares,
including questions regarding the dividend reinvestment plan and
mailings of shareholder materials
|
Your
intermediary
|
For all other shareholder inquiries, please contact TD
Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email
tdshinfo@td.com. Please note that by leaving us an e-mail or
voicemail message, you are providing your consent for us to forward
your inquiry to the appropriate party for response.
Annual Report on Form 40-F (U.S.)
A copy of the Bank's
Annual Report on Form 40-F for fiscal 2021 will be filed with the
Securities and Exchange Commission later today and will be
available at http://www.td.com. You may obtain a printed copy of
the Bank's Annual Report on Form 40-F for fiscal 2021 free of
charge upon request to TD Shareholder Relations at
416-944-6367 or 1-866-756-8936 or e-mail tdshinfo@td.com.
Access to Quarterly Results Materials
Interested investors, the media, and others may view this fourth
quarter earnings news release, results slides, supplementary
financial information, supplemental regulatory disclosure, and the
2021 Consolidated Financial Statements and MD&A documents on
the TD website at www.td.com/investor/.
General Information
Products and services: Contact TD Canada Trust, 24 hours a day,
seven days a week: 1-866-567-8888 French: 1-866-233-2323
Cantonese/Mandarin: 1-800-328-3698
Telephone device for the hearing impaired (TTY): 1-800-361-1180
Website: www.td.com
Email: customer.service@td.com
Media contacts: https://stories.td.com/media-contacts
Quarterly Earnings Conference Call
TD Bank Group will host an earnings conference call in Toronto, Ontario on December 2, 2021. The
call will be available live via TD's website at
1:30 p.m. ET. The call and audio webcast will feature
presentations by TD executives on the Bank's financial results for
the fourth quarter, followed by a question-and-answer period with
analysts. The presentation material referenced during the call will
be available on the TD website at www.td.com/investor on
December 2, 2021 before 1:30 p.m.
ET. A listen-only telephone line is available at
416-641-6150 or 1-866-696-5894 (toll free) and the passcode is
2727354#.
The audio webcast and presentations will be archived at
www.td.com/investor. Replay of the teleconference will be available
from 5:00 p.m. ET on
December 2, 2021, until 11:59 p.m.
ET on December 17, 2021 by
calling 905-694-9451 or 1-800-408-3053 (toll free). The passcode is
7300743#.
Annual Meeting
Thursday, April 14, 2022
Toronto, Ontario
Record Date for Notice and Voting:
February 14, 2022
About TD Bank Group
The Toronto-Dominion Bank and its
subsidiaries are collectively known as TD Bank Group ("TD" or the
"Bank"). TD is the fifth largest bank in North America by assets and serves over 26
million customers in three key businesses operating in a number of
locations in financial centres around the globe: Canadian Retail,
including TD Canada Trust, TD Auto Finance Canada, TD Wealth
(Canada), TD Direct Investing, and
TD Insurance; U.S. Retail, including TD Bank, America's Most
Convenient Bank®, TD Auto Finance U.S., TD Wealth
(U.S.), and an investment in The Charles Schwab Corporation; and
Wholesale Banking, including TD Securities. TD also ranks
among the world's leading online financial services firms, with
more than 15 million active online and mobile customers. TD had
CDN$1.7 trillion in assets on
October 31, 2021. The
Toronto-Dominion Bank trades under the symbol "TD" on the
Toronto and New York Stock
Exchanges.
SOURCE TD Bank Group