Winning with the Mass Affluent Customer TD s Approach to the U.S. Mass Affluent Marketplace. David Boone, Executive Vice President

Transcription

1 Winning with the Mass Affluent Customer TD s Approach to the U.S. Mass Affluent Marketplace David Boone, Executive Vice President Mass Affluent Segment, TD BANK USA March 12, 2012

2 Snapshot of TD Our Businesses Canadian Personal & Commercial Wealth Management U.S. Personal & Commercial Wholesale Banking Adjusted Earnings1 FY2011 Wholesale 12% (C$6,251) U.S. P&C 20% 2,3 TD AMTD 3% Global 2 Wealth 9% Canadian P&C 55% Total Retail Earnings = 88% 1. See footnote #2 on slide #3 for definition of adjusted earnings. 2. Global Wealth and TD Ameritrade make up the Wealth Management business segment. 3. TD had a reported investment in TD Ameritrade of 44.96% as at October 31, 2011.

3 U.S. Personal and Commercial Banking: Performance Adjusted Earnings 1 ($MM) 5-year CAGR 45% 2 C$ US$ $224 $328 $794 $781 $1,008 $1,345 Milestones Privatized TD Banknorth Acquired Commerce Bancorp Completed TD Banknorth/ Completed FDICassisted Acquired Chrysler Financial. Commerce Integration transactions and acquired The South Financial Group, Inc. 1. See slide #3 for definition of adjusted results. Also see the U.S. P&C segment discussion in the Business Segment Analysis section in the Annual Reports and the 2011 MD&A. Also see starting on pg.5 of the Fourth Quarter 2011 Earnings News Release and the 2011 MD&A for an explanation of how the Bank reports and a reconciliation of the Bank s non-gaap measures to reported basis (GAAP) results. See also on pages 146 to 147 of the 2010 Annual Report for a reconciliation for 10 years ending FY year CAGR is calculated based on compound annual growth from 2006 to 2011.

4 A Top 10 U.S. Bank $202 billion in assets $160 billion in deposits $77 billion in loans 7.8 million Customers 1,280+ Stores 1,850+ ATMs 26,000+ Employees! Updated as of 10/31/11 4

5 Capturing the Mass Affluent Segment Drives Strategic Value Significant addressable economic opportunity A demographic imperative Under penetrated & underserved Cost of inaction will be high Our model is unique in the industry Success requires significant cooperation across TD 5

6 Customer Insights Driving Strategy 6

7 Finding the right model is challenging 7

8 Competitive Environment Intensifying 8

9 Transforming to a new model 9

10 TD Ameritrade Business Model Client-Centric based on Needs Trading, Investing, Advice Client-Centric Multi-Channel Delivery Web Phone Education Branch Independent RIAs Broad Product Range Open Architecture Tools and information Seminars and coaching Planning services Packaged products Cash management Well-aligned with Secular Growth Trends (1) Internet Traders/Self-directed Household financial assets and savings Advisor move to independence (1)Sources: Cerulli, ICI, Federal Reserve Flow of Funds Report, TowerGroup Active Trader Report. * David Boone and TD Bank Group are affiliated with TD Ameritrade, Inc. as TD Bank Group has an ownership interest in TD Ameritrade Holding Corporation; the parent company of TD Ameritrade, Inc. Mr. Boone s opinions and commentary should not be construed as an endorsement or recommendation by TD Ameritrade, Inc. 10

11 TD Ameritrade Client Offering More than self-service Match offering to client need Package advice in products Serve clients with sophisticated and high touch needs through independent registered investment advisors (RIAs) High Cost to Deliver Low Refer High Touch/Cost Customized Advice 2 Package Advice in Product Low Cost, Low Guidance, Self-Directed Personalized Guidance High TD Ameritrade Institutional 1 support of independent RIAs Branch service and Investment Consultants Packaged products Guidance and portfolio management tools/solutions Web and phone support * Brokerage services provided by TD Ameritrade, Inc., member FINRA ( /SIPC ( /NFA ( ** David Boone and TD Bank Group are affiliated with TD Ameritrade, Inc. as TD Bank Group has an ownership interest in TD Ameritrade Holding Corporation; the parent company of TD Ameritrade, Inc. Mr. Boone s opinions and commentary should not be construed as an endorsement or recommendation by TD Ameritrade, Inc. 1)TD Ameritrade Institutional, Division of TD Ameritrade, Inc. 2)About AdvisorDirect: Potential AdvisorDirect clients should typically have at least $200,000 in assets to invest. Some RIAs have higher or lower minimum asset requirements. There is no charge or obligation for the initial consultation with the RIA. Once you select an RIA, you will pay advisory fees and standard brokerage fees. Brokerage transactions executed through TD Ameritrade are subject to standard transaction charges. You should review an RIA's Form ADV, other applicable advisor disclosure document(s) and the AdvisorDirect Disclosure and Acknowledgement Document prior to engaging an RIA. The Form ADV contains important disclosure information relative to an RIA's services and fees. RIAs charge an ongoing investment advisory fee for their services. RIAs will pay TD Ameritrade fees for their participation in the AdvisorDirect program. Those fees will usually constitute a percentage of the advisory fees you will pay your RIA. For additional details about the fees paid to TD Ameritrade and other conflicts of interest, please review the AdvisorDirect Disclosure and Acknowledgement Document and ask your RIA about its specific arrangement with TD Ameritrade. You are solely responsible for evaluating any advisor that you are considering. 11

12 Three Referral Models In-Store Investment Consultant, Branch & National Branch TD Bank Clients In-Store Investment Consultant (Hub/Spoke) TD Ameritrade Branches TD Ameritrade National Branch TD Bank Store Team & Financial Services Reps 12

13 What we ve learned Bankers & Brokers working together Linking an online broker to a primarily branch based sales system Building capabilities in-store, builds talent and builds sales Customers don t know what we have to offer Investment program performance drives significant relationship banking value Competing for shelf space. the more you sell, the more you sell Reactive is not good enough 13

14 Where are we going 1 Guidance 2 3 Marketing Value Proposition Superior Customer Experience 4 New to Bank On boarding Better Value proposition 5 Optimize Distribution Improved & Consistent Reach 6 Proactive Outreach 14

15 Thank-you 15