SUPPLEMENTAL FINANCIAL INFORMATION For the Fourth Quarter Ended October, 05 Investor Relations Department For further information contact: Kelly Milroy 46-08-900 www.td.com/investor
Supplemental Financial Information (unaudited) For the Fourth Quarter Ended October, 05 The supplemental information contained in this package is designed to improve the readers' understanding of the financial performance of TD Bank Group ( TD or the Bank ). This information should be used in conjunction with the Bank's fourth quarter 05 Earnings News Release (ENR), the 05 Management's Discussion and Analysis (MD&A), Investor Presentation, as well as the Bank's Consolidated Financial Statements for the year ended October, 05. For financial and banking terms, and acronyms used in this package, refer to the Glossary and Acronyms pages, respectively. How the Bank Reports The Bank prepares its consolidated financial statements in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), 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 referred to as adjusted results to assess each of its segments and to measure overall Bank performance. The Bank removes items of note, net of income taxes, from reported results to arrive at adjusted results, as items of note relate to items which management does not believe are indicative of underlying business performance. The items of note are listed on page of this package. The Bank believes that adjusted results provide the reader with a better understanding of how management views the Bank s performance. As explained, adjusted results are different from reported results determined in accordance with IFRS. Adjusted results, items of note, and related terms are non-gaap financial measures as these are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. A reconciliation between the Bank s reported and adjusted results is provided in the How the Bank Reports section of the Bank's 05 MD&A and fourth quarter 05 ENR. The Bank implemented new and amended standards under IFRS (05 IFRS Standards and Amendments) which required retrospective application, effective the first quarter of fiscal 05. As a result, certain comparative amounts have been restated where applicable. For further details, refer to Note 4 of the Bank's 05 Financial Statements and Notes. The 05 IFRS Standards and Amendments were not incorporated into the regulatory capital disclosures presented prior to the first quarter of 05. Certain other comparative amounts have also been restated/reclassified to conform with the presentation adopted in the current period. 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 TD Ameritrade; and Wholesale Banking. The Bank s other activities are grouped into the Corporate segment. The appendix pages have been included to facilitate comparability with the reportable segments of the Bank's Canadian peers. The Bank measures and evaluates the performance of each segment based on adjusted results and adjusted return on common equity (ROE). Adjusted ROE is adjusted net income available to common shareholders as a percentage of average common equity. Adjusted ROE is a non-gaap financial measure as it is not a defined term under IFRS and, therefore, may not be comparable to similar term used by other issuers. Beginning November, 04, capital allocated to the business segments is based on 9% Common Equity Tier (CET) Capital. The Bank determines its segments based on the view taken by the Chief Executive Officer to regularly evaluate performance and make key operating decisions, and is not necessarily comparable with other financial services companies. Results of each business segment reflect revenue, expenses, and assets generated by the businesses in that segment. Due to the complexity of the Bank, its management reporting model uses various estimates, assumptions, allocations, and risk-based methodologies for funds transfer pricing, inter-segment revenue, income tax rates, capital, indirect expenses, and cost transfers to measure business segment results. Transfer pricing of funds is generally applied at market rates. Inter-segment revenue is negotiated between each business segment and approximates the value provided by the distributing segment. Income tax provision or recovery is generally applied to each segment based on a statutory tax rate and may be adjusted for items and activities unique to each segment. Net income for the operating business segments is presented before any items of note not attributed to the operating segments. Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of the 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. Basel III Reporting Effective the first quarter of 04, the Office of the Superintendent of Financial Institutions Canada (OSFI) implemented a phased-in approach to the Credit Valuation Adjustment (CVA) component included in credit risk-weighted assets (RWA). The CVA capital charge phase-in is based on a scalar approach whereby a CVA capital charge of 57% applies in 04 for the Common Equity Tier (CET) calculation and will increase annually until 00% in 09. Effective the third quarter of 04, a different scalar applies to the CET, Tier, and Total Capital ratios. Therefore, each capital ratio has its own RWA measure. For the third and fourth quarters of 04, the scalars for inclusion of CVA for CET, Tier, and Total Capital RWA were 57%, 65%, and 77%, respectively. For fiscal 05, the scalars are 64%, 7%, and 77%, respectively. All three RWA measures are disclosed as part of the RWA disclosures on page 76, as well as the Capital Position disclosures on pages 77 to 78. Periods prior to the first quarter of 04 do not include CVA. Effective the first quarter of 05, the leverage ratio replaces the previous assets-to-capital ratio and is calculated as Tier Capital divided by leverage exposures. OSFI's regulatory limit is % on an all-in basis. Further details are provided on page 8 using the OSFI-prescribed template to disclose both the all-in and transitional ratio. Effective the second quarter of 05, the Bank disclosed the Basel III liquidity coverage ratio (LCR). Absent financial stress, OSFI prescribes the minimum LCR requirement for Canadian banks at 00%. Further details are provided in the Managing Risk section of the MD&A using the OSFI-prescribed disclosure template.
Supplemental Financial Information (unaudited) For the Fourth Quarter Ended October, 05 Table of Contents Page Page Highlights Analysis of Change in Non-Controlling Interests in Subsidiaries and Shareholder Value Investment in TD Ameritrade 4 Adjustments for Items of Note, Net of Income Taxes Derivatives Notional 4-44 Segmented Results Summary 4 Credit Exposure 45-46 Canadian Retail Segment 5 Consolidated Balance Sheet Cross-Referenced to Credit Risk Exposures 47 U.S. Retail Segment Canadian Dollars 6 Gross Credit Risk Exposure 48-50 U.S. Dollars 7 Exposures Covered By Credit Risk Mitigation 5 Wholesale Banking Segment 8 Standardized Credit Risk Exposures 5 Corporate Segment 9 Retail Advanced IRB Exposures By Obligor Grade Residential Secured 5-59 Net Interest Income and Margin 0 Retail Advanced IRB Exposures By Obligor Grade Qualifying Non-Interest Income Revolving Retail 60-6 Non-Interest Expenses Retail Advanced IRB Exposures By Obligor Grade Other Retail 6-65 Balance Sheet Non-Retail Advanced IRB Exposures By Obligor Grade Corporate 66-67 Unrealized Gain (Loss) on Banking Book Equities and Assets Under Non-Retail Advanced IRB Exposures By Obligor Grade Sovereign 68-69 Administration and Management 4 Non-Retail Advanced IRB Exposures By Obligor Grade Bank 70-7 Goodwill, Other Intangibles, and Restructuring Costs 5 AIRB Credit Risk Exposures: Undrawn Commitments and EAD on On- and Off-Balance Sheet Loan Securitizations 6 Undrawn Commitments 7 Standardized Charges for Securitization Exposures in the Trading Book 7 AIRB Credit Risk Exposures: Loss Experience 7 Securitization Exposures in the Trading Book 8 AIRB Credit Risk Exposures: Actual and Estimated Parameters 74 Securitization Exposures in the Banking Book 9 Securitization and Resecuritization Exposures in the Banking Book 75 Third-Party Originated Assets Securitized by Bank Sponsored Conduits 0 Risk-Weighted Assets 76 Loans Managed Capital Position Basel III 77-78 Gross Loans and Acceptances by Industry Sector and Geographic Location - 4 Reconciliation with Balance Sheet Under Regulatory Scope of Consolidation 79 Impaired Loans 5 Flow Statement for Regulatory Capital 80 Impaired Loans and Acceptances by Industry Sector and Geographic Location 6-8 Leverage Ratio 8 Allowance for Credit Losses 9 Adjustments for Items of Note, Net of Income Taxes Footnotes 8 Allowance for Credit Losses by Industry Sector and Geographic Location 0 - Glossary 8 Provision for Credit Losses Acronyms 84 Provision for Credit Losses by Industry Sector and Geographic Location 4-6 Acquired Credit-Impaired Loans by Geographic Location 7-9 Appendix Analysis of Change in Equity 40 Canadian Personal and Commercial Banking A Change in Accumulated Other Comprehensive Income, Net of Income Taxes 4 Canadian Wealth and Insurance A
Highlights ($ millions, except as noted) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Income Statement Net interest income $ 4,887 $ 4,697 $ 4,580 $ 4,560 $ 4,457 $ 4,45 $ 4,9 $ 4,0 $ 4,8 $ 8,74 $ 7,584 $ 6,074 Non-interest income,60,09,79,054,995,074,044,64,87,70,77,85 Total revenue 8,047 8,006 7,759 7,64 7,45 7,509 7,45 7,565 7,000,46 9,96 7,59 Provision for (reversal of) credit losses Loans 4 550 44 96 68 97 9 95 454 80,757,575,64 Debt securities classified as loans 5 (9) () () (7) (8) (6) () Acquired credit-impaired loans 6 () (7) (0) (7) (4) 7 (5) () (6) () 49 Total provision for (reversal of) credit losses 7 509 47 75 6 7 8 9 456 5,68,557,6 Insurance claims and related expenses 8 67 600 564 699 70 77 659 68 7,500,8,056 Non-interest expenses 9 4,9 4,9 4,705 4,65 4, 4,040 4,09 4,096 4,64 8,07 6,496 5,069 Income (loss) before provision for income taxes 0,990,677,5,88,00,60,55,0,77 9,70 9,075 7,50 Provision for (recovery of) income taxes 59 50 44 48 70 0 447 65 8,5,5,5 Income before equity in net income of an investment in associate,7,75,77,970,660,00,908,965,55 7,647 7,56 6,68 Equity in net income of an investment in associate, net of income taxes 08 9 88 90 86 77 80 77 8 77 0 7 Net income reported 4,89,66,859,060,746,07,988,04,66 8,04 7,88 6,640 Adjustment for items of note, net of income taxes 5 8 9 0 6 6 60 86 (8) 99 70 44 496 Net income adjusted 6,77,85,69,,86,67,074,04,85 8,754 8,7 7,6 Preferred dividends 7 6 5 4 4 5 40 46 49 99 4 85 Net income available to common shareholders and non-controlling interests in subsidiaries adjusted 8 $,5 $,60 $,45 $,099 $,80 $,4 $,04 $,978 $,766 $ 8,655 $ 7,984 $ 6,95 Attributable to: Non-controlling interests adjusted 9 $ 9 $ 8 $ 8 $ 7 $ 7 $ 7 $ 6 $ 7 $ 7 $ $ 07 $ 05 Common shareholders adjusted 0,,,7,07,80,5,008,95,79 8,54 7,877 6,846 Earnings per Share (EPS) ($) and Weighted-Average Number of Common Shares Outstanding (millions) Basic earnings: Reported $ 0.96 $.0 $ 0.98 $.09 $ 0.9 $. $.05 $.07 $ 0.84 $ 4. $ 4.5 $.46 Adjusted.5..5. 0.98.5.09.06 0.95 4.6 4.8.7 Diluted earnings: Reported 0.96.9 0.97.09 0.9..04.07 0.84 4. 4.4.44 Adjusted 4.4.0.4. 0.98.5.09.06 0.95 4.6 4.7.7 Weighted-average number of common shares outstanding Basic 5,85.,85.,848.,844.,84.0,840.,88.9,85.,8.4,849.,89.,87.9 Diluted 6,857.,855.7,85.4,849.7,848.,846.5,844.8,84.,89.0,854.,845.,845. Balance Sheet ($ billions) Total assets 7 $,04.4 $,099. $,0.0 $,080. $ 960.5 $ 99.7 $ 908. $ 90.4 $ 86.0 $,04.4 $ 960.5 $ 86.0 Total equity 8 67.0 66.0 6.6 6.6 56. 54.8 5.8 5.9 5.4 67.0 56. 5.4 Risk Metrics ($ billions, except as noted) Common Equity Tier (CET) Capital risk-weighted assets, 9 $ 8.4 $ 69.5 $ 4.6 $ 55.6 $ 8.4 $ 6.7 $. $.0 $ 86.4 $ 8.4 $ 8.4 $ 86.4 Common Equity Tier Capital 0 8.0 7. 4..6.0 9.6 9.0 7.8 5.8 8.0.0 5.8 Common Equity Tier Capital ratio, 9.9 % 0. % 9.9 % 9.5 % 9.4 % 9. % 9. % 8.9 % 9.0 % 9.9 % 9.4 % 9.0 % Tier Capital $ 4.4 $ 4.6 $ 9.7 $ 9. $ 6.0 $ 5.0 $ 4.0 $.9 $.5 $ 4.4 $ 6.0 $.5 Tier Capital ratio,. %.5 %.5 %.0 % 0.9 %.0 % 0.9 % 0.5 %.0 %. % 0.9 %.0 % Total Capital ratio, 4 4.0.9.7.0.4.6.6. 4. 4.0.4 4. Leverage ratio 4 5.7.7.7.5 n/a n/a n/a n/a n/a.7 n/a n/a Liquidity coverage ratio (LCR) 5 6 6 n/a n/a n/a n/a n/a n/a 6 n/a n/a After-tax impact of % increase in interest rates on: Economic value of shareholders' equity ($ millions) 6 7 $ (4) $ (5) $ (89) $ (9) $ (68) $ (40) $ (5) $ () $ () $ (4) $ (68) $ () Net interest income ($ millions) 7 8 40 75 80 46 90 74 56 80 40 80 Net impaired loans personal, business, and government ($ millions) 8 9,660,5,8,48,44,9,05,86,4,660,44,4 Net impaired loans personal, business, and government as a % of net loans and acceptances 8 40 0.48 % 0.47 % 0.46 % 0.47 % 0.46 % 0.45 % 0.48 % 0.5 % 0.50 % 0.48 % 0.46 % 0.50 % Provision for credit losses as a % of net average loans and acceptances 8 4 0.40 0. 0. 0.9 0. 0.8 0.5 0.40 0.4 0.4 0.4 0.8 Rating of senior debt: Moody's 4 Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Aa Standard and Poor's 4 AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- AA- 4 5 6 7 8 Basic EPS is computed by dividing net income attributable to common shareholders by the weighted-average number of common shares outstanding during the period. For the calculation of diluted EPS, adjustments are made to the net income attributable to common shareholders to include the effect of dilutive securities. As a result, the sum of the quarterly basic and diluted EPS figures may not equal the year-to-date EPS. Amounts are calculated in accordance with the Basel III regulatory framework, and are presented based on the all-in methodology. The final CAR Guideline had postponed the CVA capital charge until January, 04. Effective the first quarter of 04, the CVA is being implemented based on a phase-in approach until the first quarter of 09. For the third and fourth quarters of 04, the scalars for inclusion of CVA for CET, Tier and Total Capital RWA were 57%, 65%, and 77%, respectively. For fiscal 05, the scalars are 64%, 7%, and 77%, respectively. The leverage ratio is effective starting the first quarter of 05 and is calculated as Tier Capital, based on the all-in methodology, divided by leverage exposures. Refer to page 8 for further details. The LCR percentage is calculated as a simple average of the three month ends in the quarter. This is also referred to as economic value at risk (EVaR), and the amounts represent the difference between the change in present value of the Bank's asset portfolio and the change in present value of the Bank's liability portfolio, including off-balance sheet instruments, resulting from an instantaneous change in interest rates. Amounts represent the -month net interest exposure to an instantaneous and sustained shift in interest rates. Excludes acquired credit-impaired (ACI) loans and debt securities classified as loans. For further details on ACI Loans, refer to pages 7 to 9.
Shareholder Value ($ millions, except as noted) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Business Performance Net income available to common shareholders and non-controlling interests in subsidiaries reported $,8 $,4 $,85 $,06 $,74 $,08 $,948 $,996 $,567 $ 7,95 $ 7,740 $ 6,455 Average common equity 6,57 58,89 57,744 54,580 5,5 49,897 49,480 47,76 45,54 58,78 49,495 44,79 Return on common equity reported.4 % 4.9 %.8 % 4.6 %. % 6. % 5.9 % 6.4 %.4 %.4 % 5.4 % 4. % Return on common equity adjusted 4.5 5.0 5.0 5. 4.0 6.8 6.6 6. 5. 4.7 5.9 5. Return on Common Equity Tier Capital risk-weighted assets adjusted 5.4.48.48.40..66.6.58.4.40.5.50 Efficiency ratio reported 6 6.0 5.6 60.6 54.7 58. 5.8 54. 54. 59.5 57.5 55. 55. Efficiency ratio adjusted 7 55. 5.4 54.8 5.8 56. 5. 5.8 5.5 55.4 54. 5.4 5.9 Effective tax rate Reported 8.0 8.8 6. 7.5 8. 4.0 9.0 5.7.4 6.6 6.7 5. Adjusted (TEB) 9 0.0.6..4.6 9..9.0 9.0.5. 9.6 Net interest margin as a % of average earning assets 0.0.0.07.0..7.6.6..05.8.0 Average number of full-time equivalent staff 80,554 8,5 8,85 8,8 8,48 8,54 80,494 80,44 78,896 8,48 8,7 78,748 Common Share Performance Closing market price ($) $ 5.68 $ 5.77 $ 55.70 $ 50.60 $ 55.47 $ 57.0 $ 5.7 $ 48.6 $ 47.8 $ 5.68 $ 55.47 $ 47.8 Book value per common share ($).8.5 0.90.60 8.45 7.48 7.4 6.9 5..8 8.45 5. Closing market price to book value 4.59.59.80.60.95.07.94.79.89.59.95.89 Price-earnings ratio Reported 5.8.7.7..4 4.0 4..4.9.8.4.9 Adjusted 6.7.9.7.7.0.4.5.7.9.7.0.9 Total shareholder return on common shareholders' investment 7 0.4 % (4.) % 9.4 % 8.8 % 0. % 6. %.4 % 0.0 %. % 0.4 % 0. %. % Number of common shares outstanding (millions) 8,855.,85.6,85.6,845.5,844.6,84.6,84.7,87.7,85.0,855.,844.6,85.0 Total market capitalization ($ billions) 9 $ 99.6 $ 97.8 $ 0. $ 9.4 $ 0. $ 05.0 $ 97. $ 88.5 $ 87.7 $ 99.6 $ 0. $ 87.7 Dividend Performance Dividend per common share ($) 0 $ 0.5 $ 0.5 $ 0.5 $ 0.47 $ 0.47 $ 0.47 $ 0.47 $ 0.4 $ 0.4 $.00 $.84 $.6 Dividend yield.9 %.7 %.6 %.5 %.4 %. %.5 %.4 %.5 %.8 %.5 %.7 % Common dividend payout ratio Reported 5.0 4.7 5. 4. 5. 4.0 45.0 40. 50.6 47.4 44. 46.9 Adjusted 44.5 4. 44.5 4.8 48.0 40.9 4. 40.4 44.8 4. 4.0 4.5 Amounts are calculated in accordance with the Basel III regulatory framework, and are presented based on the all-in methodology. Effective the first quarter of 04, the Bank conformed to a standardized definition of full-time equivalent (FTE) staff across all segments. The definition includes, among other things, hours for overtime and contractors as part of its calculations. Comparatives for periods prior to the first quarter of 04 have not been restated. Return is calculated based on share price movement and dividends reinvested over a trailing one year period.
Adjustments for Items of Note, Net of Income Taxes LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Increase (Decrease) in Net Income Due to Items of Note ($ millions) Amortization of intangibles (Footnote ) $ 65 $ 6 $ 65 $ 6 $ 6 $ 60 $ 6 $ 6 $ 59 $ 55 $ 46 $ Restructuring charges (Footnote ) 4 8 90 47 90 Charge related to the acquisition of Nordstrom Inc.'s (Nordstrom) credit card portfolio and related integration costs (Footnote 4) 5 5 Litigation and litigation-related charge/reserve (Footnote 5) 4 (4) 0 8 00 Fair value of derivatives hedging the reclassified available-for-sale securities portfolio (Footnote 6) 5 () (9) (5) (4) (9) 5 (55) (4) (57) Integration charges and direct transaction costs relating to the acquisition of the credit card portfolio of MBNA Canada (Footnote 7) 6 54 7 4 5 9 Set-up, conversion and other one-time costs related to affinity relationship with Aimia and acquisition of Aeroplan Visa credit card accounts (Footnote 8) 7 6 5 0 0 Impact of Alberta flood on the loan portfolio (Footnote 9) 8 (9) (9) (9) 9 Gain on sale of TD Waterhouse Institutional Services (Footnote 0) 9 (96) (96) Total 0 $ 8 $ 9 $ 0 $ 6 $ 6 $ 60 $ 86 $ (8) $ 99 $ 70 $ 44 $ 496 Increase (Decrease) in Earnings per Share Due to Items of Note ($) (Footnote ) Amortization of intangibles (Footnote ) $ 0.0 $ 0.0 $ 0.04 $ 0.0 $ 0.04 $ 0.0 $ 0.04 $ 0.0 $ 0.0 $ 0.4 $ 0. $ 0. Restructuring charges (Footnote ) 0. 0. 0.05 0.5 0.05 Charge related to the acquisition of Nordstrom's credit card portfolio and related integration costs (Footnote 4) 0.0 0.0 Litigation and litigation-related charge/reserve (Footnote 5) 4 (0.0) 0.0 0.0 0.0 0.05 Fair value of derivatives hedging the reclassified available-for-sale securities portfolio (Footnote 6) 5 (0.0) (0.0) (0.0) (0.0) (0.0) 0.0 (0.0) (0.0) (0.0) Integration charges and direct transaction costs relating to the acquisition of the credit card portfolio of MBNA Canada (Footnote 7) 6 0.0 0.0 0.0 0.0 0.0 0.07 0.05 Set-up, conversion and other one-time costs related to affinity relationship with Aimia and acquisition of Aeroplan Visa credit card accounts (Footnote 8) 7 0.0 0.06 0.0 0.07 0.0 Impact of Alberta flood on the loan portfolio (Footnote 9) 8 (0.0) (0.0) (0.0) 0.0 Gain on sale of TD Waterhouse Institutional Services (Footnote 0) 9 (0.0) (0.0) Total 0 $ 0.8 $ 0.0 $ 0.7 $ 0.0 $ 0.07 $ 0.04 $ 0.05 $ (0.0) $ 0. $ 0.40 $ 0. $ 0.7 For detailed footnotes to the items of note, refer to page 8.
Segmented Results Summary ($ millions, except as noted) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Net Income (loss) Adjusted Canadian Retail $,496 $,557 $,46 $,449 $,58 $,44 $,49 $,40 $,7 $ 5,98 $ 5,490 $ 4,68 U.S. Retail 646 650 66 65 509 56 548 49 478,547,0,85 Total Retail,4,07,06,074,867,004,897,8,749 8,485 7,600 6,5 Wholesale Banking 4 96 9 46 9 60 6 07 0 87 8 650 Corporate 5 (6) (6) (9) (4) (65) (5) (0) (8) (56) (604) (86) (47) Total Bank 6 $,77 $,85 $,69 $, $,86 $,67 $,074 $,04 $,85 $ 8,754 $ 8,7 $ 7,6 Return on Common Equity Adjusted Canadian Retail 7 4. % 44.6 % 4. % 4.9 % 4.5 % 44.7 % 4.7 % 4.9 % 45.0 % 4.8 % 4.7 % 4. % U.S. Retail 8 7.8 8. 8. 8.5 7.6 9.0 9. 8.0 8.4 8. 8.4 8.4 Wholesale Banking 9.0 7. 7.7.0.0 8.4 8. 0.6. 5. 7.5 5.6 Total Bank 0.5 5.0 5.0 5. 4.0 6.8 6.6 6. 5. 4.7 5.9 5. Percentage of Adjusted Net Income Mix Total Retail 9 % 90 % 89 % 9 % 9 % 90 % 90 % 89 % 9 % 9 % 90 % 9 % Wholesale Banking 8 0 8 8 0 0 7 9 0 9 Total Bank 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % Geographic Contribution to Total Revenue 4 Canada 4 65 % 64 % 59 % 69 % 66 % 65 % 6 % 68 % 65 % 64 % 66 % 66 % United States 5 5 0 8 7 9 8 8 8 6 Other International 6 0 6 8 8 4 7 4 6 8 Total Bank 7 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 00 % 4 Effective fiscal 05, capital allocated to the business segments is based on 9% CET Capital. These changes have been applied prospectively. OSFI guidance issued in November 0 permitted banks to defer capital relating to CVA capital until January, 04. The Bank had chosen to continue to allocate capital to Wholesale Banking, for fiscal 0 inclusive of CVA capital. However, total Bank results prior to the first quarter of 04 excluded CVA capital to align with the revised OSFI guidance issued in November 0. As of the first quarter of 04, CVA is being included according to the OSFI guidance. Percentages exclude the Corporate segment results. TEB amounts are not included. 4
Canadian Retail Segment RESULTS OF OPERATIONS ($ millions, except as noted) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Net interest income $,497 $,480 $,69 $,45 $,45 $,46 $, $,45 $,98 $ 9,78 $ 9,58 $ 8,9 Non-interest income,500,5,409,464,485,498,56,84,99 9,904 9,6 8,860 Total revenue 4,997 5,0 4,778 4,899 4,90 4,94 4,678 4,69 4,597 9,685 9,6 7,78 Provision for (reversal of) credit losses 4 7 9 90 50 8 8 0 4 887 946 99 Insurance claims and other related expenses 5 67 600 564 699 70 77 659 68 7,500,8,056 Non-interest expenses 6,4,04,075,085,4,076,09,9,0 8,407 8,48 7,754 Income (loss) before income taxes 7,996,070,900,95,76,859,76,597,60 7,89 6,944 6,04 Provision for (recovery of) income taxes 8 500 5 464 476 4 459 46 9 9,95,70,474 Net income reported 9,496,557,46,449,04,400,6,04,7 5,98 5,4 4,569 Adjustments for items of note, net of income taxes 0 54 4 6 4 56 Net income adjusted $,496 $,557 $,46 $,449 $,58 $,44 $,49 $,40 $,7 $ 5,98 $ 5,490 $ 4,68 Average common equity ($ billions) $ 4.0 $.8 $.9 $.7 $.7 $.8 $.6 $. $. $.9 $.6 $ 0.8 Return on common equity reported 4. % 44.6 % 4. % 4.9 % 40.8 % 4.4 % 4.0 % 9.4 % 4.8 % 4.8 % 4.7 % 4. % Return on common equity adjusted 4 4. 44.6 4. 4.9 4.5 44.7 4.7 4.9 45.0 4.8 4.7 4. Key Performance Indicators ($ billions, except as noted) Common Equity Tier Capital risk-weighted assets 5 $ 06 $ 07 $ 04 $ 0 $ 00 $ 99 $ 98 $ 98 $ 9 $ 06 $ 00 $ 9 Average loans personal Residential mortgages 6 8. 77. 75.0 75. 7.9 68. 65.9 65.4 6.6 77.5 68. 57.8 Consumer instalment and other personal Home Equity Line of Credit (HELOC) 7 60.8 60. 59.7 59. 59. 59.7 60.0 60.7 6.4 60.0 59.9 6. Indirect auto 8 8.5 7.7 7.0 6.6 5.9 5. 4.5 4.4 4. 7.4 5.0 4.0 Other 9 6. 6.7 6. 6. 6.0 5.5 5.4 5. 5. 6.4 5.5 5. Credit card 0 9.0 8.7 8. 8.9 9. 9. 8.9 7. 5.9 8.7 8.7 5.4 Total average loans personal 96.6 90.7 86. 86. 8. 77.9 74.7 7.0 69.4 90.0 77. 64.8 Average loans and acceptances business 57.0 55.9 54.5 5.8 5. 5. 50. 48.5 47. 55.0 50.5 45. Average deposits Personal 65.8 6. 60.0 58.5 56.5 54.6 5.6 5.6 5.7 6.6 54.6 50.8 Business 4 84.4 84.0 8.4 8.6 80.6 78. 76.5 76.8 75.6 8. 78.0 7.0 Wealth 5 8.9 8.5 8.5 7.7 7.5 7.4 7. 7. 7. 8.4 7. 7.0 Margin on average earning assets including securitized assets reported 6.84 %.88 %.89 %.88 %.9 %.98 %.97 %.94 %.9 %.87 %.95 %.9 % Margin on average earning assets including securitized assets adjusted 7.84.88.89.88.9.98.97.94.9.87.95.9 Assets under administration 8 $ 0 $ 4 $ $ 0 $ 9 $ 85 $ 78 $ 64 $ 85 $ 0 $ 9 $ 85 Assets under management 9 45 49 44 4 7 7 9 0 45 7 0 Gross originated insurance premiums ($ millions) 0,046,04 977 86,06,078 950 89 99,988,89,77 Efficiency ratio reported 4.9 % 4.0 % 4.4 % 4.6 % 45. % 4. % 4. % 45.8 % 44. % 4.7 % 44.0 % 4.6 % Efficiency ratio adjusted 4.9 4.0 4.4 4.6 4.7 40.9 4.5 4.8 4. 4.7 4. 4.7 Non-interest expenses adjusted ($ millions) $,4 $,04 $,075 $,085 $,5 $,08 $,987 $,95 $,986 $ 8,407 $ 8,09 $ 7,60 Number of Canadian retail branches at period end 4,65,66,65,64,65,64,74,78,79,65,65,79 Average number of full-time equivalent staff 4 5 8,78 9,80 9, 9,60 9,67 9,49 9,7 9,76 9,44 9,8 9,89 9,55 4 Items of note relate primarily to integration charges and direct transaction costs relating to the acquisition of the credit card portfolio of MBNA Canada and set-up, conversion, and other one-time costs related to affinity relationship with Aimia and acquisition of Aeroplan Visa credit card accounts. Refer to footnotes 7 and 8, respectively, on page 8. Effective fiscal 05, capital allocated to the business segments is based on 9% CET Capital. These changes have been applied prospectively. Amounts are calculated in accordance with the Basel III regulatory framework, and are presented based on the all-in methodology. Effective the first quarter of fiscal 04, the Bank conformed to a standardized definition of full-time equivalent staff across all segments. The definition includes, among other things, hours for overtime and contractors as part of its calculations. Comparatives for periods prior to the first quarter of fiscal 04 have not been restated. 5
U.S. Retail Segment Canadian Dollars RESULTS OF OPERATIONS ($ millions, except as noted) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Net interest income $,905 $,74 $,70 $,64 $,55 $,500 $,508 $,477 $,48 $ 7,0 $ 6,000 $ 5,7 Non-interest income 600 647 585 58 5 545 576 59 56,44,45,49 Total revenue,505,8,5,4,047,045,084,069,964 9,45 8,45 7, Provision for (reversal of) credit losses (PCL) Loans 4 8 06 5 8 65 8 75 6 8 694 76 Debt securities classified as loans 5 (9) () () (7) (8) (6) () Acquired credit-impaired loans 6 () (7) (0) (7) (4) 7 (5) () (6) () 49 Total provision for (reversal of) credit losses 7 4 00 77 9 7 7 8 8 749 676 779 Non-interest expenses 8,70,470,579,9,8,0,9,,44 6,70 5,5 4,768 Income (loss) before income taxes 9 54 7 605 656 57 598 57 59 47,506,7,775 Provision for (recovery of) income taxes 0 48 9 96 0 0 95 66 94 4 69 U.S. Retail Bank net income reported 486 58 509 55 46 485 470 44 7,,805,506 Adjustments for items of note, net of income taxes 4 5 (4) 0 59 00 U.S. Retail Bank net income adjusted 57 558 54 55 46 485 470 44 40,7,805,606 Equity in net income of an investment in associate, net of income taxes 5 4 09 9 85 90 8 76 78 68 77 76 05 46 Net income adjusted 5 646 650 66 65 509 56 548 49 478,547,0,85 Net income reported 6 $ 595 $ 674 $ 594 $ 65 $ 509 $ 56 $ 548 $ 49 $ 448 $,488 $,0 $,75 Average common equity ($ billions) 7 $. $. $.0 $ 9. $ 6.4 $ 4.8 $ 4.7 $ 4.4 $.5 $. $ 5. $.0 Return on common equity reported 6 8 7. % 8.6 % 7.9 % 8.5 % 7.6 % 9.0 % 9. % 8.0 % 7.9 % 8.0 % 8.4 % 8.0 % Return on common equity adjusted 6 9 7.8 8. 8. 8.5 7.6 9.0 9. 8.0 8.4 8. 8.4 8.4 Key Performance Indicators ($ billions, except as noted) Common Equity Tier Capital risk-weighted assets 7 0 $ 00 $ 90 $ 7 $ 80 $ 58 $ 5 $ 49 $ 49 $ 8 $ 00 $ 58 $ 8 Average loans personal Residential mortgages 7.6 6. 6.4 4.6..5.9..4 6..7 0.0 Consumer instalment and other personal HELOC.5.9.0..6..5. 0.7.9.4 0.5 Indirect auto 4.6..5 9.6 8. 7. 7.4 7.0 6..0 7.5 5. Other 4 0.7 0.7 0.7 0.6 0.6 0.6 0.5 0.5 0.7 0.7 0.5 0.6 Credit card 5 0.6 8.9 8.7 8.5 7.6 7.4 7.5 7.6 7.0 9. 7.5 4.8 Total average loans personal 6 77.0 7.0 70. 65.5 6. 59.0 59.8 58. 56.0 70.9 59.6 5. Average loans and acceptances business 7 89.6 8.6 78. 70.6 64. 60.5 59.4 56. 5.8 80.0 60. 50.4 Average debt securities classified as loans 8.9.9......5.6.0..9 Average deposits Personal 9 96.5 90.8 89.9 80.6 75. 7. 74. 69.4 66. 89.4 7.0 64.0 Business 8 0 80. 7.0 7.8 66.6 6.0 59.5 60.7 58.4 55.9 7.7 60.4 5.0 TD Ameritrade insured deposit accounts 04.5 94. 9. 87.4 8.4 78.4 80.4 77.9 75. 94.8 79.8 70.4 Margin on average earning assets (TEB) 9.59 %.50 %.6 %.7 %.65 %.76 %.77 %.8 %.89 %.6 %.75 %.66 % Assets under administration $ 6 $ 5 $ $ 4 $ $ $ $ $ $ 6 $ $ Assets under management 4 0 97 88 77 67 6 59 57 5 0 67 5 Efficiency ratio reported 5 69. % 6.7 % 68. % 6.5 % 67.5 % 64.5 % 64. % 6.4 % 68.4 % 65.5 % 64.9 % 65. % Efficiency ratio adjusted 6 66.8 6.4 66.0 6.5 67.5 64.5 64. 6.4 67.0 64.7 64.9 6.4 Non-interest expenses adjusted ($ millions) 7 $,7 $,509 $,57 $,9 $,8 $,0 $,9 $, $,5 $ 6,48 $ 5,5 $ 4,64 Number of U.S. retail stores as at period end 0 8,98,05,0,0,8,06,97,88,7,98,8,7 Average number of full-time equivalent staff 9 5,50 5,546 5,775 6,0 6,6 6,056 5,965 6,08 5,5 5,647 6,074 5,47 Revenue, PCL, and expenses related to Target Corporation (Target) and Nordstrom are reported on a gross basis in the Consolidated Statement of Income. Includes all Federal Deposit Insurance Corporation (FDIC) covered loans and other ACI loans. Excludes TD Ameritrade. 4 Items of note relate to the charge on the acquisition of Nordstrom's credit card portfolio and related integration costs, and litigation and litigation-related charge/reserve. Refer to footnotes 4 and 5, respectively, on page 8. 5 The equity in net income of an investment in associate includes the net impact of internal management adjustments which are reclassified to other reporting lines in the Corporate segment. 6 Effective fiscal 05, capital allocated to the business segments is based on 9% CET Capital. These changes have been applied prospectively. 7 Amounts are calculated in accordance with the Basel III regulatory framework, and are presented based on the all-in methodology. 8 Excludes the impact of cash collateral deposited by affiliates. 9 The margin on average earning assets excludes the impact related to the TD Ameritrade insured deposit accounts (IDA). Effective the second quarter of 05, the margin on average earning assets (a) excludes the impact of cash collateral deposited by affiliates with the U.S. banks, which have been eliminated at the U.S. Retail segment level and (b) the allocation of investments to the IDA has been changed to reflect the Basel III liquidity rules. 0 Includes full service retail banking stores. Effective the first quarter of fiscal 04, the Bank conformed to a standardized definition of full-time equivalent staff across all segments. The definition includes, among other things, hours for overtime and contractors as part of its calculations. Comparatives for periods prior to the first quarter of fiscal 04 have not been restated. 6
U.S. Retail Segment U.S. Dollars RESULTS OF OPERATIONS (US$ millions, except as noted) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Net interest income $,447 $,9 $,85 $,408 $,70 $,87 $,65 $,8 $,8 $ 5,6 $ 5,50 $ 5,070 Non-interest income 456 59 468 499 48 504 5 554 55,94,060,0 Total revenue,90,9,85,907,85,89,886,95,896 7,574 7,56 7,7 Provision for (reversal of) credit losses Loans 4 5 66 59 48 0 57 04 66 66 746 Debt securities classified as loans 5 () (9) (0) (6) (9) (4) () Acquired credit-impaired loans 6 (9) (6) (8) (6) () 6 (4) () (9) () 49 Total provision for (reversal of) credit losses 7 84 6 04 54 5 8 55 77 60 6 764 Non-interest expenses 8,5,79,65,9,49,0,,5,97 4,95 4,907 4,67 Income (loss) before income taxes 9 404 57 484 560 477 55 58 487 4,09,05,78 Provision for (recovery of) income taxes 0 6 0 77 0 9 04 9 89 65 8 78 64 U.S. Retail Bank net income reported 68 469 407 457 85 449 45 98 57,70,657,474 Adjustments for items of note, net of income taxes 4 9 (9) 6 9 46 00 U.S. Retail Bank adjusted 407 450 4 457 85 449 45 98 86,747,657,574 Equity in net income of an investment in associate, net of income taxes 5 4 84 74 69 79 77 69 70 65 7 06 8 4 Net income adjusted 5 49 54 50 56 46 58 495 46 459,05,98,85 Net income reported 6 $ 45 $ 54 $ 476 $ 56 $ 46 $ 58 $ 495 $ 46 $ 40 $,007 $,98 $,75 Average common equity (US$ billions) 7 $ 5. $ 4.9 $ 4.9 $ 5.0 $.9 $.9 $.4 $.9 $.5 $ 5.0 $.0 $.6 Key Performance Indicators (US$ billions, except as noted) Common Equity Tier Capital risk-weighted assets 6 8 $ 5 $ 45 $ 44 $ 4 $ 40 $ 8 $ 6 $ 4 $ $ 5 $ 40 $ Average loans personal Residential mortgages 9 0.9.0...0 0.8 0.7 0.7 0.6.0 0.8 9.6 Consumer instalment and other personal HELOC 0 0. 0.4 0.4 0.4 0.5 0.5 0.4 0. 0. 0.4 0.4 0. Indirect auto 8.7 7.9 7. 6.8 6.6 5.9 5.7 5.9 5.6 7.7 6. 4.9 Other 0.6 0.5 0.5 0.6 0.5 0.6 0.5 0.5 0.8 0.6 0.5 0.6 Credit card 8.0 7. 7.0 7. 6.9 6.8 6.8 7. 6.7 7. 6.9 4.7 Total average loans personal 4 58.5 56.9 56. 56. 55.5 54.6 54. 54.5 54.0 57.0 54.7 50. Average loans and acceptances business 5 68. 65.4 6.6 60.5 58.0 55.9 5.7 5.6 50.9 64. 55. 49.5 Average debt securities classified as loans 6.4.5.6.8.9.0...5.6..8 Average deposits Personal 7 7. 7.8 7.0 69. 68.0 67.7 67. 64.9 6.9 7.8 66.9 6.7 Business 7 8 6.0 57.7 57.5 57. 57.0 55.0 54.9 54.7 5.9 58. 55.4 5.0 TD Ameritrade insured deposit accounts 9 79.4 75.6 74.6 74.9 74.6 7.4 7.8 7.9 7.6 76. 7. 69.0 Total revenue adjusted (US$ millions) 0,959,9,85,907,85,89,886,95,896 7,60 7,56 7,7 Non-interest expenses adjusted (US$ millions),08,09,,9,49,0,,5,69 4,9 4,907 4,545 4 5 6 7 Revenue, PCL, and expenses related to Target and Nordstrom are reported on a gross basis in the Consolidated Statement of Income. Includes all FDIC covered loans and other ACI loans. Excludes TD Ameritrade. Items of note relate to the charge on the acquisition of Nordstrom's credit card portfolio and related integration costs, and litigation and litigation-related charge/reserve. Refer to footnotes 4 and 5, respectively, on page 8. The equity in net income of an investment in associate includes the net impact of internal management adjustments which are reclassified to other reporting lines in the Corporate segment. Amounts are calculated in accordance with the Basel III regulatory framework, and are presented based on the all-in methodology. Excludes the impact of cash collateral deposited by affiliates. 7
Wholesale Banking Segment RESULTS OF OPERATIONS ($ millions, except as noted) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Net interest income (TEB) $ 550 $ 564 $ 584 $ 597 $ 57 $ 589 $ 5 $ 55 $ 509 $,95 $,0 $,98 Non-interest income 6 0 00 4 67 9 45 67 94 6 470 48 Total revenue 666 765 784 7 604 680 678 78 60,96,680,40 Provision for (reversal of) credit losses 4 4 () 5 7 5 8 6 Non-interest expenses 5 90 4 447 4 8 9 405 4 4,70,589,54 Income (loss) before income taxes 6 6 7 76 4 8 66 07 75,07,080 84 Income taxes (TEB) 7 66 9 9 84 64 67 59 77 5 4 67 9 Net income (loss) reported 8 96 9 46 9 60 6 07 0 87 8 650 Net income (loss) adjusted 9 $ 96 $ 9 $ 46 $ 9 $ 60 $ 6 $ 07 $ 0 $ $ 87 $ 8 $ 650 Average common equity ($ billions) 0 $ 6.0 $ 5.5 $ 5.7 $ 5.9 $ 4.9 $ 4.7 $ 4.7 $ 4.4 $ 4.0 $ 5.8 $ 4.7 $ 4. Return on common equity,.0 % 7. % 7.7 %.0 %.0 % 8.4 % 8. % 0.6 %. % 5. % 7.5 % 5.6 % Key Performance Indicators ($ billions, except as noted) Common Equity Tier Capital risk-weighted assets 4 $ 65 $ 6 $ 57 $ 64 $ 6 $ 57 $ 56 $ 56 $ 47 $ 65 $ 6 $ 47 Gross drawn 5 6 6 4 4 0 0 9 9 6 9 Efficiency ratio 4 58.6 % 56. % 57.0 % 60.9 % 6. % 57.6 % 59.7 % 57. % 70. % 58. % 59. % 64.0 % Average number of full-time equivalent staff 6 5,74,76,77,746,77,76,68,544,55,748,654,56 Trading-Related Income (Loss) (TEB) 7 Interest rate and credit 6 $ $ 90 $ 08 $ 90 $ 79 $ 5 $ 8 $ 08 $ 65 $ 600 $ 59 $ 55 Foreign exchange 7 09 04 0 4 0 97 8 04 9 467 85 69 Equity and other 8 95 96 56 6 0 0 96 85 478 46 5 Total trading-related income (loss) 9 $ 6 $ 45 $ 44 $ 80 $ 96 $ 5 $ 65 $ 408 $ 4 $,545 $,94 $,7 4 5 6 7 Includes the cost of credit protection incurred in hedging the lending portfolio. Effective fiscal 05, capital allocated to the business segments is based on 9% CET Capital. These changes have been applied prospectively. OSFI guidance issued in November 0 permitted banks to defer capital relating to CVA capital until January, 04. The Bank had chosen to continue to allocate capital to Wholesale Banking, for fiscal 0 inclusive of CVA capital. However, total Bank results prior to the first quarter of 04 excluded CVA capital to align with the revised OSFI guidance issued in November 0. As of the first quarter of 04, CVA is being included according to the OSFI guidance. Amounts are calculated in accordance with the Basel III regulatory framework and are presented based on the all-in methodology. In accordance with OSFI guidance, CVA capital was deferred until the first quarter of 04, therefore fiscal 0 results exclude CVA. Includes gross loans and bankers' acceptances, excluding letters of credit and before any cash collateral, credit default swaps (CDS), reserves, etc., for the corporate lending business. Effective the first quarter of fiscal 04, the Bank conformed to a standardized definition of full-time equivalent staff across all segments. The definition includes, among other things, hours for overtime and contractors as part of its calculations. Comparatives for periods prior to the first quarter of fiscal 04 have not been restated. Includes trading-related income reported in net interest income and non-interest income. 8
Corporate Segment RESULTS OF OPERATIONS ($ millions) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Net interest income (loss), $ (65) $ (8) $ (0) $ (4) $ (0) $ (90) $ 8 $ (7) $ (5) $ (6) $ (64) $ () Non-interest income (loss) (56) (70) (5) (06) (89) (60) () () (47) 9 (5) Total revenue () (5) (8) (0) (9) (50) (5) 49 (64) (60) (5) (55) Provision for (reversal of) credit losses 4 () 5 (7) (7) () (5) () (60) 9 (76) (0) Non-interest expenses 5 648 87 604 56 45 5 66 54 65,795,7,005 Income (loss) before income taxes and equity in net income of an investment in associate 6 (80) (46) (77) (469) (447) (80) (46) (9) (469) (,44) (,66) (,57) Provision for (recovery of) income taxes 7 (55) () (07) (6) (7) (09) (5) (00) (74) (,58) (877) (800) Equity in net income of an investment in associate, net of income taxes 8 () () 9 4 5 6 Net income (loss) reported 9 (448) (04) (47) (06) (7) (70) (9) 6 (9) (,75) (74) () Adjustments for items of note, net of income taxes 0 87 4 78 6 6 7 6 (54) 5 67 () 84 Net income (loss) adjusted $ (6) $ (6) $ (9) $ (4) $ (65) $ (5) $ (0) $ (8) $ (56) $ (604) $ (86) $ (47) Decomposition of Adjustments for Items of Note, Net of Income Taxes Amortization of intangibles (Footnote ) $ 65 $ 6 $ 65 $ 6 $ 6 $ 60 $ 6 $ 6 $ 59 $ 55 $ 46 $ Restructuring charges (Footnote ) 4 8 90 47 90 Fair value of derivatives hedging the reclassified available-for-sale securities portfolio (Footnote 6) 4 () (9) (5) (4) (9) 5 (55) (4) (57) Impact of Alberta flood on the loan portfolio (Footnote 9) 5 (9) (9) (9) 9 Gain on sale of TD Waterhouse Institutional Services (Footnote 0) 6 (96) (96) Total adjustments for items of note 7 $ 87 $ 4 $ 78 $ 6 $ 6 $ 7 $ 6 $ (54) $ 5 $ 67 $ () $ 84 Decomposition of Items included in Net Income (Loss) Adjusted Net corporate expenses 8 $ (9) $ (9) $ (77) $ (7) $ () $ (70) $ (59) $ (65) $ (4) $ (74) $ (77) $ (56) Other 9 4 0 4 90 0 00 59 8 4 64 Non-controlling interests 0 9 8 8 7 7 7 6 7 7 07 05 Net income (loss) adjusted $ (6) $ (6) $ (9) $ (4) $ (65) $ (5) $ (0) $ (8) $ (56) $ (604) $ (86) $ (47) Includes the elimination of TEB adjustments reported in Wholesale Banking results. Business segment results are presented excluding the impact of asset securitization programs, which are reclassified in the Corporate segment. For detailed footnotes to the items of note, refer to page 8. 9
Net Interest Income and Margin ($ millions, except as noted) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Interest Income Loans $ 5,59 $ 5,44 $ 4,94 $ 5,075 $ 4,98 $ 4,950 $ 4,907 $ 4,876 $ 4,788 $ 0,9 $ 9,76 $ 8,498 Securities,6,086,090,057,05,0 99,0,06 4,69 4,086 4,0 Deposits with banks 4 6 6 6 9 4 7 4 6 04 Total interest income 4 6,9 6,66 6,067 6,68 6,064 6,00 5,90 5,9 5,8 4,80,98,65 Interest Expense Deposits 5,0,069,09,,09,060,04,0,6 4,4 4, 4,46 Securitization liabilities 6 0 4 47 7 84 87 89 7 0 59 777 97 Subordinated notes and debentures 7 0 9 94 00 00 06 0 05 05 90 4 447 Other 8 86 64 07 4 4 4 08 06 87 88 84 706 Total interest expense 9,44,569,487,608,607,567,59,6,648 6,06 6,44 6,54 Net Interest Income 0 4,887 4,697 4,580 4,560 4,457 4,45 4,9 4,0 4,8 8,74 7,584 6,074 TEB adjustment 95 9 9 40 76 06 5 00 47 48 Net Interest Income (TEB) $ 4,98 $ 4,788 $ 4,67 $ 4,700 $ 4,5 $ 4,566 $ 4,497 $ 4,46 $ 4,8 $ 9,4 $ 8,0 $ 6,406 Average total assets ($ billions) $, $,069 $,06 $,004 $ 96 $ 99 $ 9 $ 909 $ 854 $,06 $ 9 $ 846 Average earning assets ($ billions) 4 958 95 906 86 8 80 798 79 748 94 808 7 Net interest margin as a % of average earning assets 5.0 %.0 %.07 %.0 %. %.7 %.6 %.6 %. %.05 %.8 %.0 % Impact on Net Interest Income due to Impaired Loans Net interest income recognized on impaired debt securities classified as loans 6 $ (7) $ (4) $ (6) $ (6) $ () $ (9) $ (4) $ () $ (6) $ (0) $ (96) $ () Net interest income foregone on impaired loans 7 9 7 7 7 5 6 6 7 6 0 04 0 Recoveries 8 () () () () () () () (4) (6) Total 9 $ $ $ $ $ $ () $ $ 5 $ () $ 4 $ 4 $ (6) 0
Non-Interest Income ($ millions) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Investment and Securities Services TD Waterhouse fees and commissions $ 07 $ 06 $ 09 $ 08 $ 0 $ 00 $ 05 $ 04 $ 8 $ 40 $ 4 $ 406 Full-service brokerage and other securities services 89 94 89 88 77 7 7 65 9 760 684 596 Underwriting and advisory 87 49 85 6 48 09 99 84 44 48 65 Investment management fees 4 6 8 4 08 05 00 00 90 48 4 6 Mutual fund management 5 40 404 88 75 6 47 8 9 0,569,55,4 Total investment and securities services 6 908 95 95 870 875 87 8 787 7,68,46,84 Credit fees 7 54 8 0 6 06 9 95 845 785 Net securities gain (loss) 8 4 () 57 0 0 45 88 5 79 7 04 Trading income (loss) 9 (99) (7) (65) (5) (9) (48) (66) (6) (58) () (49) (79) Service charges 0 68 65 57 55 558 55 50 5 5,76,5,966 Card services 480 4 46 48 96 7 9 9 5,766,55,0 Insurance revenue 977 970 9 899,00,06 96 90 968,758,88,74 Trust fees 6 9 40 5 9 7 9 5 6 50 50 48 Other income Foreign exchange non-trading 4 59 40 46 6 50 8 45 50 56 9 Income (loss) from financial instruments designated at fair value through profit or loss Trading-related income (loss) 5 () (4) (8) (5) () () (6) Related to insurance subsidiaries 6 () (6) 80 8 9 8 (5) 7 45 40 (8) Securitization liabilities 7 5 0 6 9 7 4 50 99 Loan commitments 8 () () (4) () (6) (4) () (7) (54) (4) () Deposits 9 4 (6) (5) (5) Other 0 (7) 9 5 (6) (6) 55 48 90 (9) (5) 80 Total other income (loss) (45) 56 56 50 9 49 88 65 47 Total non-interest income $,60 $,09 $,79 $,054 $,995 $,074 $,044 $,64 $,87 $,70 $,77 $,85 The results of the Bank s insurance business within Canadian Retail include both insurance revenue and the income from investments that fund policy liabilities which are designated at fair value through profit or loss within the Bank s property and casualty insurance subsidiaries.
Non-Interest Expenses ($ millions) LINE 05 04 0 Full Year For the period ended # Q4 Q Q Q Q4 Q Q Q Q4 05 04 0 Salaries and Employee Benefits Salaries $,8 $,87 $,46 $,6 $,78 $,0 $,6 $,7 $,0 $ 5,45 $ 5,7 $ 4,75 Incentive compensation 479 49 56 55 446 50 486 494 4,057,97,64 Pension and other employee benefits 68 8 400 8 8 45 59 94,54,5,66 Total salaries and employee benefits 4,0,6,08,44,4,5,067,090,96 9,04 8,45 7,65 Occupancy Rent 5 5 6 5 0 04 00 95 9 887 800 755 Depreciation and impairment losses 6 00 94 9 89 85 69 85 85 84 76 4 0 Other 7 07 0 7 97 0 95 07 456 45 7 Total occupancy 8 447 47 48 47 99 70 405 75 84,79,549,456 Equipment Rent 9 46 45 44 7 4 6 7 5 7 47 6 Depreciation and impairment losses 0 49 54 55 54 58 5 5 48 46 09 88 Other 9 6 6 7 0 9 0 0 6 508 454 44 Total equipment 4 5 5 08 89 88 5 89 80 847 Amortization of Other Intangibles Software 98 95 9 85 98 70 65 79 8 69 49 Other 4 7 7 75 7 70 70 75 7 70 9 86 7 Total amortization of other intangibles 5 7 67 66 58 68 40 40 50 5 66 598 5 Marketing and Business Development 6 98 9 8 57 7 8 86 7 94 78 756 685 Restructuring charges 7 49 7 9 9 686 9 9 Brokerage-Related Fees 8 77 79 86 8 79 8 80 8 79 4 7 Professional and Advisory Services 9 05 58 8 4 44 4 0 00,0 99,009 Communications 0 69 68 70 66 7 7 68 69 70 7 8 8 Other Expenses Capital and business taxes 6 6 9 45 9 40 6 8 9 60 47 Postage 5 56 59 55 58 54 54 46 5 0 Travel and relocation 47 4 4 4 5 44 46 4 50 75 85 86 Other 4 67 480 55 476 55 449 540 67 565,78,5,69 Total other expenses 5 8 605 686 59 690 586 680 75 694,74,708,7 Total non-interest expenses 6 $ 4,9 $ 4,9 $ 4,705 $ 4,65 $ 4, $ 4,040 $ 4,09 $ 4,096 $ 4,64 $ 8,07 $ 6,496 $ 5,069
Balance Sheet ($ millions) LINE 05 04 0 As at # Q4 Q Q Q Q4 Q Q Q Q4 ASSETS Cash and due from banks $,54 $,54 $,945 $,899 $,78 $,099 $,87 $,874 $,58 Interest-bearing deposits with banks 4,48 49,08 45,654 50,64 4,77 6,708,76 44,6 8,58 Trading loans, securities, and other 95,57 08,47 0,844 07,488 0,7 0,749 99,46 0,44 0,940 Derivatives 4 69,48 75,056 65,07 9, 55,796 47,09 50,874 57,5 49,46 Financial assets designated at fair value through profit or loss 5 4,78 4,005,900 4,097 4,745 5,00 5,95 6,7 6,5 Available-for-sale securities 6 88,78 77,586 70,448 67,44 6,008 6,88 56,75 56,9 79,544 7 57,755 65,9 4,64 7, 4,7 5,689,08,67 7,477 Held-to-maturity securities 8 74,450 7,66 69,4 70,559 56,977 56,5 56,54 55,58 9,96 Securities purchased under reverse repurchase agreements 9 97,64 0,5 89,44 9,4 8,556 88,55 75,50 76,765 64,8 Loans Residential mortgages 0,7 08,86 0,55 0,8 98,9 9,594 89,44 88,879 85,80 Consumer instalment and other personal: HELOC 74,766 74,50 7,9 7,0 7,68 7,66 7,847 7,7 7,47 Indirect auto 4,90 4,4 8,575 8,785 5,6,499,5,,07 Other 6,804 7,98 7,49 7,85 6,78 6,56 5,964 5,978 5,808 Credit card 4 0,5 7,047 5,807 6,404 5,570 5,59 5,99 5,57, Business and government 5 67,59 60,7 49,666 5,08,49 5,65, 0,88 6,799 Debt securities classified as loans 6,87,97,5,778,695,77,96,758,744 7 547,775 5,97 508,446 5,94 48,97 468,946 458,96 459,57 447,777 Allowance for loan losses 8 (,44) (,44) (,50) (,6) (,08) (,005) (,049) (,079) (,855) Loans, net of allowance for loan losses 9 544,4 58,68 505,96 508,9 478,909 465,94 455,9 456,448 444,9 Other Customers' liability under acceptances 0 6,646 4,7 5,99,,080,599,040 9,0 6,99 Investment in TD Ameritrade 6,68 6,577 6,07 6,5 5,569 5, 5,6 5,45 5,00 Goodwill 6,7 6,4 5, 5,848 4,,8,879 4,079,9 Other intangibles,67,695,66,79,680,66,656,69,49 Land, buildings, equipment, and other depreciable assets 4 5,4 5,04 5,00 5,7 4,90 4,74 4,758 4,840 4,65 Deferred tax assets 5,9,4,9,09,008,97,9,75,800 Amounts receivable from brokers, dealers and clients 6,996 6,794 7,64,94 7,0,48 9,40 5, 9,8 Other assets 7,48,749,56,878,6 0,694 0,75 0,70 0, 8 84,86 76,846 76,09 8,499 70,79 7,06 70,77 6,650 5,4 Total assets 9 $,04,7 $,099,0 $,00,954 $,080,55 $ 960,5 $ 99,680 $ 908,04 $ 90,44 $ 86,0 LIABILITIES Trading deposits 0 $ 74,759 $ 80,67 $ 67,68 $ 6,65 $ 59,4 $ 6,5 $ 57,4 $ 6,0 $ 50,967 Derivatives 57,8 6,0 60,57 80,674 5,09 45,988 48,4 54,057 49,47 Securitization liabilities at fair value 0,986 0,567 0,58,564,98,5 6,4 8,,960 Other financial liabilities designated at fair value through profit or loss,45,78,8,75,50,67 4,08 4,89 4 44,78 56,4 40,65 58,54 4,99 4,0 5,886 8,79,40 Deposits Personal: Non-term 5 45,40 6,94,9 7,97 90,980 79,850 76,6 76,65 6,46 Term 6 50,45 5,508 5,68 5,559 5,60 5,857 54,070 56,6 58,005 Banks 7 7,080 0,05,509 8,7 5,77 6,4 5,76 6,9 7,49 Business and government 8 8,678 77, 66,67 7,905 4,705 4,560 09,048,77 04,988 9 695,576 685,660 65,09 67,77 600,76 57,678 555,044 56,6 54,605 Other Acceptances 40 6,646 4,7 5,99,,080,599,040 9,0 6,99 Obligations related to securities sold short 4 8,80 4,6,474 4,878 9,465 9,0 7,56 40,979 4,89 Obligations related to securities sold under repurchase agreements 4 67,56 74,07 59,495 59,6 5, 55,944 47,9 44,9 4,44 Securitization liabilities at amortized cost 4,74,75,580 4,9 4,960 5,709 5,587 6,48 5,59 Amounts payable to brokers, dealers and clients 44,664 5,479 7,48,8 8,95,7,00 6,56 8,88 Insurance-related liabilities 45 6,59 6,85 6,67 6,9 6,079 5,99 5,687 5,649 5,586 Other liabilities 46 4, 5,07 5, 6,846 5,897 6,804 5,848 4,997 5,99 47 88,754 8,980 69,664 78,6 70,788 79, 65,6 57,574 8,64 Subordinated notes and debentures 48 8,67 8,456 6,95 7,777 7,785 7,95 7,974 7,987 7,98 Total liabilities 49,07,45,0,7 969,57,07,56 904,80 884,95 854,55 866,55 80,68 EQUITY Common shares 50 0,94 0,80 0,076 9,948 9,8 9,705 9,59 9,45 9,6 Preferred shares 5,700,700,800,700,00,65,50,95,95 Treasury shares: Common 5 (49) (7) () (79) (54) (9) (0) (5) (45) Preferred 5 () (4) (4) () () () () () () Contributed surplus 54 4 6 6 4 05 84 7 6 70 Retained earnings 55,05 0,764 9,6 8,7 7,585 6,970 6,4 5,08,98 Accumulated other comprehensive income (loss) 56 0,09 0,477 7,569 9,956 4,96,84 4,06 4,874,59 57 65,48 64,6 60,008 6,009 54,68 5,4 5,5 5,66 49,875 Non-controlling interests in subsidiaries 58,60,69,589,60,549,5,54,54,508 Total equity 59 67,08 65,965 6,597 6,69 56, 54,755 5,769 5,909 5,8 Total liabilities and equity 60 $,04,7 $,099,0 $,00,954 $,080,55 $ 960,5 $ 99,680 $ 908,04 $ 90,44 $ 86,0