Form
20-F o
|
Form
40-F x
|
Yes
o
|
No
x
|
THE
TORONTO-DOMINION BANK
|
|||
DATE: February
23, 2006
|
By:
|
/s/
Rasha El Sissi
|
|
Name:
|
Rasha
El Sissi
|
||
Title:
|
Associate
Vice President, Legal
|
|
Bank Financial Group |
1st
Quarter 2006 •
Report to Shareholders •Three
months ended January 31, 2006
|
TD
Bank Financial Group Delivers Very Strong
First
Quarter 2006 Results,
Raises
Dividend
|
Ÿ
|
Reported
diluted earnings per share1
were $3.20, up 237% from $.95.
|
Ÿ
|
Adjusted
diluted earnings per share2
were $1.15, up 11% from $1.04.
|
Ÿ
|
Reported
net income was $2,307 million, compared with $630
million.
|
Ÿ
|
Adjusted
net income was $835 million, compared with $685
million.
|
Ÿ
|
Return
on common equity was 55.4%, compared with
19.5%.
|
Ÿ
|
Amortization
of intangibles of $82 million ((11) cents per share) compared with
$87
million ((13) cents per share) in the first quarter last
year.
|
Ÿ
|
Dilution
gain of U.S. $1.45 billion (CDN $1.67 billion) after-tax on the Ameritrade
transaction net of costs ($2.32 per share).
|
Ÿ
|
Dilution
loss of $72 million after-tax on the acquisition of Hudson United
Bancorp
by TD Banknorth ((10) cents per share).
|
Ÿ
|
TDBFG’s
share of TD Banknorth’s balance sheet restructuring charge of U.S. $16
million (CDN $19 million) after-tax ((3) cents per
share).
|
Ÿ
|
Restructuring
charge in connection with the previously announced decision to reposition
the Bank’s global structured products businesses of $35 million after-tax
((5) cents per share).
|
Ÿ
|
The
impact of hedging relationships accounting guideline (AcG-13) resulting
in
a gain of $10 million after-tax (2 cents per share), compared with
a loss
$11 million after-tax ((2) cents per
share).
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
2
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
3
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
4
|
(unaudited) | ||||||||||
For
the three months ended
|
||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||
(millions
of Canadian dollars, except as noted)
|
2006
|
2005
|
2005
|
|||||||
Results
of operations
|
||||||||||
Total
revenues
|
$
|
3,404
|
$
|
3,083
|
$
|
2,806
|
||||
Dilution
gain, net (pre-tax)
|
1,564
|
-
|
-
|
|||||||
Provision
for (reversal of) credit losses
|
114
|
(15
|
)
|
10
|
||||||
Non-interest
expenses
|
2,290
|
2,203
|
1,945
|
|||||||
Net
income - reported
|
2,307
|
589
|
630
|
|||||||
Net
income - adjusted
|
835
|
765
|
685
|
|||||||
Economic
profit
|
353
|
279
|
280
|
|||||||
Return
on common equity
|
55.4
|
%
|
14.8
|
%
|
19.5
|
%
|
||||
Return
on invested capital
|
16.5
|
15.9
|
17.1
|
|||||||
Financial
position
|
||||||||||
Total
assets
|
$
|
384,377
|
$
|
365,210
|
$
|
333,317
|
||||
Total
risk-weighted assets
|
135,883
|
129,982
|
102,994
|
|||||||
Total
shareholders’ equity
|
18,473
|
15,866
|
13,203
|
|||||||
Financial
ratios - reported (percent)
|
||||||||||
Efficiency
ratio
|
46.1
|
%
|
71.5
|
%
|
69.3
|
%
|
||||
Tier
1 capital to risk-weighted assets
|
11.9
|
10.1
|
13.0
|
|||||||
Tangible
common equity as a % of risk-weighted assets
|
8.8
|
7.4
|
9.3
|
|||||||
Provision
for credit losses as a % of net average loans
|
.29
|
(.04
|
)
|
.03
|
||||||
Common
share information - reported
(Canadian dollars)
|
||||||||||
Per
share
|
||||||||||
Basic
earnings
|
$
|
3.23
|
$
|
.83
|
$
|
.96
|
||||
Diluted
earnings
|
3.20
|
.82
|
.95
|
|||||||
Dividends
|
.42
|
.42
|
.36
|
|||||||
Book
value
|
25.25
|
22.29
|
20.06
|
|||||||
Closing
share price
|
60.65
|
55.70
|
48.15
|
|||||||
Shares
outstanding (millions)
|
||||||||||
Average
basic
|
712.5
|
710.0
|
656.6
|
|||||||
Average
diluted
|
718.9
|
716.1
|
661.9
|
|||||||
End
of
period
|
714.7
|
711.8
|
658.3
|
|||||||
Market
capitalization (billions of Canadian dollars)
|
$
|
43.3
|
$
|
39.6
|
$
|
31.7
|
||||
Dividend
yield (%)
|
2.8
|
%
|
2.8
|
%
|
2.9
|
%
|
||||
Dividend
payout ratio
|
13.0
|
50.6
|
37.5
|
|||||||
Price
to earnings multiple
|
11.1
|
17.4
|
14.0
|
|||||||
Common
share information - adjusted
(Canadian dollars)
|
||||||||||
Per
share
|
||||||||||
Basic
earnings
|
$
|
1.16
|
$
|
1.08
|
$
|
1.04
|
||||
Diluted
earnings
|
1.15
|
1.06
|
1.04
|
|||||||
Dividend
payout ratio
|
36.1
|
%
|
39.0
|
%
|
34.5
|
%
|
||||
Price
to earnings multiple
|
14.3
|
13.5
|
12.6
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
5
|
Reconciliation of non-GAAP measures1 (unaudited) | ||||||||||
Adjusted
net income to reported results
|
For
the three months ended
|
|||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||
(millions
of Canadian dollars)
|
2006
|
20053
|
20054
|
|||||||
Net
interest income
|
$
|
1,607
|
$
|
1,654
|
$
|
1,411
|
||||
Other
income
|
1,834
|
1,539
|
1,412
|
|||||||
Total
revenues
|
3,441
|
3,193
|
2,823
|
|||||||
Provision
for (reversal of) credit losses
|
114
|
94
|
80
|
|||||||
Non-interest
expenses
|
2,112
|
2,062
|
1,811
|
|||||||
Income
before provision for income taxes and non-controlling
interest
|
1,215
|
1,037
|
932
|
|||||||
Provision
for income taxes
|
328
|
219
|
247
|
|||||||
Non-controlling
interest
|
52
|
53
|
-
|
|||||||
Net
income - adjusted
|
835
|
765
|
685
|
|||||||
Preferred
dividends
|
5
|
-
|
-
|
|||||||
Net
income available to common shareholders -
adjusted
|
830
|
765
|
685
|
|||||||
Items
of note impacting income, net of income taxes
|
||||||||||
Amortization
of intangibles
|
(82
|
)
|
(86
|
)
|
(87
|
)
|
||||
Dilution
gain on Ameritrade transaction, net of costs
|
1,670
|
(138
|
)
|
-
|
||||||
Dilution
loss on the acquisition of Hudson United by TD Banknorth
|
(72
|
)
|
-
|
-
|
||||||
Balance
sheet restructuring charge in TD Banknorth
|
(19
|
)
|
-
|
-
|
||||||
Wholesale
Banking restructuring charge
|
(35
|
)
|
(4
|
)
|
-
|
|||||
Hedging
impact due to AcG-13
|
10
|
7
|
(11
|
)
|
||||||
Other
tax items
|
-
|
68
|
-
|
|||||||
Non-core
portfolio loan loss recoveries (sectoral related)
|
-
|
60
|
20
|
|||||||
Loss
on structured derivative portfolios
|
-
|
(70
|
)
|
-
|
||||||
Preferred
share redemption
|
-
|
(13
|
)
|
-
|
||||||
General
allowance release
|
-
|
-
|
23
|
|||||||
Total
items of note
|
1,472
|
(176
|
)
|
(55
|
)
|
|||||
Net
income available to common shareholders -
reported
|
$
|
2,302
|
$
|
589
|
$
|
630
|
||||
Adjusted
earnings per share (EPS) to reported2
|
||||||||||
(Canadian
dollars)
|
||||||||||
Diluted
- adjusted
|
$
|
1.15
|
$
|
1.06
|
$
|
1.04
|
||||
Items
of note impacting income (as above)
|
2.05
|
(.24
|
)
|
(.09
|
)
|
|||||
Diluted
- reported
|
3.20
|
.82
|
.95
|
|||||||
Basic
- reported
|
$
|
3.23
|
$
|
.83
|
$
|
.96
|
1.
|
Certain
comparative amounts have been restated.
|
2.
|
Earnings
per
share (EPS) is computed by dividing income by the weighted average
number
of shares outstanding during the period. As a result, the sum of
the
quarterly EPS figures may not equal year to date EPS.
|
3.
|
Items
of note
included in the fourth quarter 2005 are as follows: amortization
of
intangibles-$86 million; the impact of a $138 million tax charge
related
to the TD Waterhouse reorganization which precedes the transaction
with
Ameritrade; favourable tax items of $68 million, which includes the
impact
of a recent court decision; non-core portfolio loan loss recoveries
(sectoral related)-$60 million; two charges in connection with the
previously announced decision to reposition the Bank’s global structured
products businesses: a loss of $70 million due to a reduction in
the
estimated value and the exit of certain structured derivative portfolios
and a restructuring charge of $4 million; preferred share redemption
premium resulting in a charge of $13 million; hedging impact due
to
AcG-13-$7 million.
|
4.
|
Items
of note
included in the first quarter 2005 are as follows: amortization of
intangibles-$87 million; non-core portfolio loan loss recoveries
(sectoral
related)-$20 million; hedging impact due to AcG-13-($11) million;
and $23
million relating to general allowance release.
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
6
|
Reconciliation of Economic Profit, Return on Invested Capital and Adjusted Net Income | ||||||||||
For
the three months ended
|
||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
2005
|
|||||||
Average
common equity
|
$
|
16,476
|
$
|
15,755
|
$
|
12,846
|
||||
Average
cumulative goodwill/intangible assets amortized, net of income
taxes
|
3,432
|
3,348
|
3,080
|
|||||||
Average
invested capital
|
$
|
19,908
|
$
|
19,103
|
$
|
15,926
|
||||
Rate
charged for invested capital
|
9.5
|
%
|
10.1
|
%
|
10.1
|
%
|
||||
Charge
for invested capital
|
$
|
(477
|
)
|
$
|
(486
|
)
|
$
|
(405
|
)
|
|
Net
income available to common shareholders - reported
|
2,302
|
589
|
630
|
|||||||
Items
of note impacting income, net of income taxes
|
(1,472
|
)
|
176
|
55
|
||||||
Net
income available to common shareholders - adjusted
|
830
|
765
|
685
|
|||||||
Economic
profit
|
$
|
353
|
$
|
279
|
$
|
280
|
||||
Return
on invested capital
|
16.5
|
%
|
15.9
|
%
|
17.1
|
%
|
||||
Return
on common equity
|
55.4
|
%
|
14.8
|
%
|
19.5
|
%
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
7
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
8
|
Provision for Credit Losses | ||||||||||
For
the three months ended
|
||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
2005
|
|||||||
Net
new specifics (net of reversals)
|
$
|
151
|
$
|
60
|
$
|
99
|
||||
Recoveries
|
(31
|
)
|
(82
|
)
|
(54
|
)
|
||||
Provision
for (reversal of) credit losses - specifics
|
120
|
(22
|
)
|
45
|
||||||
Change
in general allowance
|
||||||||||
TD
Bank
|
-
|
-
|
(35
|
)
|
||||||
TD
Banknorth
|
(6
|
)
|
7
|
-
|
||||||
Total
|
$
|
114
|
$
|
(15
|
)
|
$
|
10
|
TD
BANK
FINANCIAL GROUP • FIRST QUARTER 2006 REPORT TO
SHAREHOLDERS
|
Page
9
|
For
the three months ended
|
|||||||||||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
|||||||||||||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
2005
|
||||||||||||||||
Income
taxes at Canadian statutory income tax rate
|
$
|
897
|
35.0
|
%
|
$
|
314
|
35.0
|
%
|
$
|
298
|
35.0
|
%
|
|||||||
Increase
(decrease) resulting from:
|
|||||||||||||||||||
Dividends
received
|
(62
|
)
|
(2.4
|
)
|
(61
|
)
|
(6.8
|
)
|
(48
|
)
|
(5.6
|
)
|
|||||||
Rate
differentials on international operations
|
(53
|
)
|
(2.1
|
)
|
(53
|
)
|
(5.9
|
)
|
(36
|
)
|
(4.2
|
)
|
|||||||
Federal
large corporations tax
|
2
|
.1
|
-
|
-
|
-
|
-
|
|||||||||||||
Items
related to dilution gains and losses
|
(584
|
)
|
(22.8
|
)
|
138
|
15.4
|
-
|
-
|
|||||||||||
Other
-
net
|
20
|
.8
|
(85
|
)
|
(9.4
|
)
|
7
|
.8
|
|||||||||||
Provision
for income taxes and effective income tax rate - reported
|
$
|
220
|
8.6
|
%
|
$
|
253
|
28.3
|
%
|
$
|
221
|
26.0
|
%
|
Reconciliation of non-GAAP provision for income taxes | ||||||||||
For
the three months ended
|
||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
2005
|
|||||||
Provision
for income taxes- reported
|
$
|
220
|
$
|
253
|
$
|
221
|
||||
Increase
(decrease) resulting from items of note:
|
||||||||||
Amortization
of
intangibles
|
46
|
49
|
47
|
|||||||
Dilution
gain
on Ameritrade, net of costs
|
34
|
(138
|
)
|
-
|
||||||
Balance
sheet restructuring charge in TD Banknorth
|
18
|
-
|
-
|
|||||||
Wholesale
Banking restructuring charge
|
15
|
2
|
-
|
|||||||
Hedging
impact due to AcG-13
|
(5
|
)
|
(3
|
)
|
6
|
|||||
Other
tax items
|
-
|
68
|
-
|
|||||||
Non-core
loan
loss recoveries (sectoral related)
|
-
|
(49
|
)
|
(15
|
)
|
|||||
Loss
on
structured derivative portfolios
|
-
|
37
|
-
|
|||||||
General
allowance release
|
-
|
-
|
(12
|
)
|
||||||
Tax
effect - items of note
|
108
|
(34
|
)
|
26
|
||||||
Provision
for income taxes - adjusted
|
$
|
328
|
$
|
219
|
$
|
247
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
10
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
11
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
12
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
13
|
Changes in Gross Impaired Loans and Acceptances | ||||||||||
For
the three months ended
|
||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
2005
|
|||||||
Balance
at beginning of period
|
$
|
349
|
$
|
452
|
$
|
537
|
||||
Additions
|
263
|
214
|
211
|
|||||||
Return
to performing status, repaid or sold
|
(95
|
)
|
(173
|
)
|
(129
|
)
|
||||
Write-offs
|
(152
|
)
|
(138
|
)
|
(111
|
)
|
||||
Foreign
exchange and other adjustments
|
-
|
(6
|
)
|
5
|
||||||
Balance
at end of period
|
$
|
365
|
$
|
349
|
$
|
513
|
Allowance for Credit Losses | ||||||||||
For
the three months ended
|
||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
2005
|
|||||||
Specific
allowance
|
$
|
155
|
$
|
153
|
$
|
256
|
||||
General
allowance
|
1,203
|
1,140
|
882
|
|||||||
Total
allowance for credit losses
|
$
|
1,358
|
$
|
1,293
|
$
|
1,138
|
||||
Total
net impaired loans
|
$
|
(993
|
)
|
$
|
(944
|
)
|
$
|
(625
|
)
|
|
Net
impaired loans as a percentage of net loans
|
(.6
|
)%
|
(.6
|
)%
|
(.5
|
)%
|
||||
Provision
for credit losses as a percentage of net average loans
|
.29
|
(.04
|
)
|
.03
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
14
|
Capital Structure and Ratios - reported | ||||||||||
As
at
|
||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||
(billions
of Canadian dollars)
|
2006
|
2005
|
2005
|
|||||||
Tier
1 capital
|
$
|
16.1
|
$
|
13.1
|
$
|
13.4
|
||||
Tier
1 capital ratio
|
11.9
|
%
|
10.1
|
%
|
13.0
|
%
|
||||
Total
capital
|
$
|
18.8
|
$
|
17.2
|
$
|
17.7
|
||||
Total
capital ratio
|
13.8
|
%
|
13.2
|
%
|
17.2
|
%
|
||||
Risk-weighted
assets
|
$
|
135.9
|
$
|
130.0
|
$
|
103.0
|
||||
Tangible
common equity
|
$
|
12.0
|
$
|
9.6
|
$
|
9.6
|
||||
Tangible
common equity as a percentage of risk-weighted assets
|
8.8
|
%
|
7.4
|
%
|
9.3
|
%
|
Ÿ
|
minimizing
the impact of interest rate risk on net interest income and economic
value
within Canadian Personal and Commercial Banking; and
|
|
Ÿ
|
measuring
the contribution of each product on a risk adjusted, fully-hedged
basis,
including the impact of financial options granted to
customers.
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER 2006 REPORT TO SHAREHOLDERS
|
Page
15
|
Value at Risk Usage - Wholesale Banking | ||||||||||
For
the three
|
For
the
twelve1
|
|||||||||
months
ended
|
months
ended
|
|||||||||
As
at
|
Average
|
Average
|
||||||||
(millions
of Canadian dollars)
|
Jan.
31, 2006
|
Jan.
31, 2006
|
Oct.
31, 2005
|
|||||||
Interest
rate risk
|
$
|
9.0
|
$
|
7.9
|
$
|
8.0
|
||||
Equity
risk
|
4.9
|
4.8
|
5.4
|
|||||||
Foreign
exchange risk
|
3.1
|
2.4
|
2.7
|
|||||||
Commodity
risk
|
1.3
|
1.0
|
1.0
|
|||||||
Diversification
effect
|
(9.5
|
)
|
(6.1
|
)
|
(7.3
|
)
|
||||
General
Market Value at Risk
|
$
|
8.8
|
$
|
10.0
|
$
|
9.8
|
Quarterly Results | |||||||||||||||||||||||||
For
the three months ended
|
|||||||||||||||||||||||||
2006
|
2005
|
2004
|
|||||||||||||||||||||||
(millions
of Canadian dollars)
|
Jan.
31
|
Oct.
31
|
July
31
|
Apr.
30
|
Jan.
31
|
Oct.
31
|
July
31
|
Apr.
30
|
|||||||||||||||||
Net
interest income
|
$
|
1,607
|
$
|
1,641
|
$
|
1,563
|
$
|
1,393
|
$
|
1,411
|
$
|
1,435
|
$
|
1,452
|
$
|
1,441
|
|||||||||
Other
income
|
1,797
|
1,442
|
1,535
|
1,517
|
1,395
|
1,118
|
1,181
|
1,284
|
|||||||||||||||||
Total
revenues
|
3,404
|
3,083
|
3,098
|
2,910
|
2,806
|
2,553
|
2,633
|
2,725
|
|||||||||||||||||
Provision
for (reversal of) credit losses
|
114
|
(15
|
)
|
40
|
20
|
10
|
(73
|
)
|
(17
|
)
|
(192
|
)
|
|||||||||||||
Dilution
gain, net
|
1,564
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Non-interest
expenses
|
2,290
|
2,203
|
2,577
|
2,057
|
1,945
|
1,904
|
1,907
|
2,271
|
|||||||||||||||||
Provision
for income taxes
|
220
|
253
|
12
|
213
|
221
|
127
|
178
|
156
|
|||||||||||||||||
Non-controlling
interest
|
37
|
53
|
58
|
21
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Net
income - reported
|
2,307
|
589
|
411
|
599
|
630
|
595
|
565
|
490
|
|||||||||||||||||
Adjustments
for items of note, net of taxes
|
(1,472
|
)
|
176
|
328
|
73
|
55
|
2
|
36
|
145
|
||||||||||||||||
Net
income - adjusted
|
835
|
765
|
739
|
672
|
685
|
597
|
601
|
635
|
|||||||||||||||||
Preferred
dividends
|
5
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||||
Net
income available to common shareholders - adjusted
|
$
|
830
|
$
|
765
|
$
|
739
|
$
|
672
|
$
|
685
|
$
|
597
|
$
|
601
|
$
|
635
|
|||||||||
(Canadian
dollars)
|
|||||||||||||||||||||||||
Basic
earnings per share
|
|||||||||||||||||||||||||
-
reported
|
$
|
3.23
|
$
|
.83
|
$
|
.58
|
$
|
.87
|
$
|
.96
|
$
|
.91
|
$
|
.87
|
$
|
.75
|
|||||||||
-
adjusted
|
1.16
|
1.08
|
1.04
|
1.00
|
1.04
|
.91
|
.92
|
.97
|
|||||||||||||||||
Diluted
earnings per share
|
|||||||||||||||||||||||||
-
reported
|
3.20
|
.82
|
.58
|
.86
|
.95
|
.90
|
.86
|
.74
|
|||||||||||||||||
-
adjusted
|
1.15
|
1.06
|
1.04
|
1.00
|
1.04
|
.91
|
.91
|
.96
|
|||||||||||||||||
Return
on common shareholders’ equity
|
55.4
|
%
|
14.8
|
%
|
10.4
|
%
|
17.2
|
%
|
19.5
|
%
|
19.1
|
%
|
18.4
|
%
|
16.5
|
%
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
16
|
TD
BANK
FINANCIAL GROUP • FIRST QUARTER REPORT 2006
|
Page
17
|
INTERIM CONSOLIDATED BALANCE SHEET (unaudited) | |||||||
As
at
|
|||||||
Jan.
31
|
Oct.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
ASSETS
|
|||||||
Cash
and due from banks
|
$
|
2,158
|
$
|
1,673
|
|||
Interest-bearing
deposits with banks
|
11,226
|
11,745
|
|||||
13,384
|
13,418
|
||||||
Securities
|
|||||||
Investment
|
46,376
|
42,321
|
|||||
Trading
|
75,000
|
65,775
|
|||||
121,376
|
108,096
|
||||||
Securities
purchased under reverse repurchase agreements
|
24,847
|
26,375
|
|||||
Loans
|
|||||||
Residential
mortgages
|
51,152
|
52,740
|
|||||
Consumer
instalment and other personal
|
61,744
|
62,754
|
|||||
Credit
card
|
3,171
|
2,998
|
|||||
Business
and government
|
40,250
|
35,044
|
|||||
156,317
|
153,536
|
||||||
Allowance
for credit losses
(Note 3)
|
(1,358
|
)
|
(1,293
|
)
|
|||
Loans
(net of allowance for credit losses)
|
154,959
|
152,243
|
|||||
Other
|
|||||||
Customers’
liability under acceptances
|
6,699
|
5,989
|
|||||
Investment
in TD Ameritrade (Note
13)
|
3,327
|
-
|
|||||
Trading
derivatives’ market revaluation
|
33,781
|
33,651
|
|||||
Goodwill
|
7,376
|
6,518
|
|||||
Other
intangibles
|
2,275
|
2,124
|
|||||
Land,
buildings and equipment
|
1,701
|
1,801
|
|||||
Other
assets
|
14,652
|
14,995
|
|||||
69,811
|
65,078
|
||||||
Total
assets
|
$
|
384,377
|
$
|
365,210
|
|||
LIABILITIES
|
|||||||
Deposits
|
|||||||
Personal
|
$
|
135,875
|
$
|
131,783
|
|||
Banks
|
15,380
|
11,505
|
|||||
Business
and government
|
105,030
|
103,693
|
|||||
256,285
|
246,981
|
||||||
Other
|
|||||||
Acceptances
|
6,699
|
5,989
|
|||||
Obligations
related to securities sold short
|
26,357
|
24,406
|
|||||
Obligations
related to securities sold under repurchase agreements
|
12,520
|
11,284
|
|||||
Trading
derivatives’ market revaluation
|
34,934
|
33,498
|
|||||
Other
liabilities
|
17,244
|
18,545
|
|||||
97,754
|
93,722
|
||||||
Subordinated
notes and debentures (Note 6)
|
7,225
|
5,138
|
|||||
Liabilities
for preferred shares and capital trust securities (Note
7)
|
1,793
|
1,795
|
|||||
Non-controlling
interest in subsidiaries
|
2,847
|
1,708
|
|||||
SHAREHOLDERS’
EQUITY
|
|||||||
Common
shares (millions of shares issued and outstanding: 714.7 and 711.8)
(Note
8)
|
6,015
|
5,872
|
|||||
Preferred
shares (millions of shares issued and outstanding: 17.0 and nil)
(Note
8)
|
425
|
-
|
|||||
Contributed
surplus
|
47
|
40
|
|||||
Foreign
currency translation adjustments
|
(666
|
)
|
(696
|
)
|
|||
Retained
earnings
|
12,652
|
10,650
|
|||||
18,473
|
15,866
|
||||||
Total
liabilities and shareholders’ equity
|
$
|
384,377
|
$
|
365,210
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
18
|
INTERIM CONSOLIDATED STATEMENT OF INCOME (unaudited) | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
Interest
income
|
|||||||
Loans
|
$
|
2,452
|
$
|
1,832
|
|||
Securities
|
|||||||
Dividends
|
222
|
229
|
|||||
Interest
|
1,037
|
856
|
|||||
Deposits
with banks
|
80
|
95
|
|||||
3,791
|
3,012
|
||||||
Interest
expense
|
|||||||
Deposits
|
1,534
|
1,108
|
|||||
Subordinated
notes and debentures
|
86
|
79
|
|||||
Preferred
shares and capital trust securities
|
39
|
29
|
|||||
Other
liabilities
|
525
|
385
|
|||||
2,184
|
1,601
|
||||||
Net
interest income
|
1,607
|
1,411
|
|||||
Other
income
|
|||||||
Investment
and securities services
|
642
|
600
|
|||||
Trading
income
|
292
|
76
|
|||||
Insurance,
net of claims
|
224
|
184
|
|||||
Service
charges
|
221
|
170
|
|||||
Loan
securitizations (Note
4)
|
92
|
93
|
|||||
Credit
fees
|
86
|
98
|
|||||
Card
services
|
81
|
52
|
|||||
Trust
fees
|
29
|
17
|
|||||
Net
investment securities gains
|
23
|
52
|
|||||
Other
|
107
|
53
|
|||||
1,797
|
1,395
|
||||||
Total
revenues
|
3,404
|
2,806
|
|||||
Provision
for credit losses (Note 3)
|
114
|
10
|
|||||
Dilution
gain, net (Note 13)
|
1,564
|
-
|
|||||
Non-interest
expenses
|
|||||||
Salaries
and employee benefits
|
1,174
|
981
|
|||||
Occupancy
including depreciation
|
166
|
148
|
|||||
Equipment
including depreciation
|
147
|
132
|
|||||
Amortization
of other intangibles
|
128
|
134
|
|||||
Restructuring
costs
|
50
|
-
|
|||||
Marketing
and business development
|
133
|
104
|
|||||
Brokerage
related fees
|
53
|
58
|
|||||
Professional
and advisory services
|
105
|
108
|
|||||
Communications
|
49
|
46
|
|||||
Other
|
285
|
234
|
|||||
2,290
|
1,945
|
||||||
Income
before provision for income taxes and non-controlling interest in
subsidiaries
|
2,564
|
851
|
|||||
Provision
for income taxes
|
220
|
221
|
|||||
Income
before non-controlling interest in subsidiaries
|
2,344
|
630
|
|||||
Non-controlling
interest
|
37
|
-
|
|||||
Net
income
|
2,307
|
630
|
|||||
Preferred
dividends
|
5
|
-
|
|||||
Net
income available to common shareholders
|
$
|
2,302
|
$
|
630
|
|||
Average
number of common shares outstanding
(millions)
|
|||||||
Basic
|
712.5
|
656.6
|
|||||
Diluted
|
718.9
|
661.9
|
|||||
Earnings
per share
(in dollars)
|
|||||||
Basic
|
$
|
3.23
|
$
|
.96
|
|||
Diluted
|
3.20
|
.95
|
|||||
Dividends
per share
(in dollars)
|
.42
|
.36
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
19
|
INTERIM CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited) | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
Common
shares
|
|||||||
Balance
at beginning of period
|
$
|
5,872
|
$
|
3,373
|
|||
Proceeds
from shares issued on exercise of options
|
45
|
27
|
|||||
Proceeds
from shares issued as a result of dividend reinvestment
plan
|
100
|
73
|
|||||
Impact
of shares (acquired) sold in Wholesale Banking
|
(2
|
)
|
2
|
||||
Balance
at end of period
|
6,015
|
3,475
|
|||||
Preferred
Shares
|
|||||||
Proceeds
from share issues
|
425
|
-
|
|||||
Balance
at end of period
|
425
|
-
|
|||||
Contributed
surplus
|
|||||||
Balance
at beginning of period
|
40
|
20
|
|||||
Stock
option expense (Note
9)
|
7
|
4
|
|||||
Balance
at end of period
|
47
|
24
|
|||||
Foreign
currency translation adjustments
|
|||||||
Balance
at beginning of period
|
(696
|
)
|
(265
|
)
|
|||
Foreign
exchange gains (losses) from investments in subsidiaries and other
items
|
(392
|
)
|
243
|
||||
Impact
of reduction in investment in TD Waterhouse U.S.A. (Note
13)
|
66
|
-
|
|||||
Foreign
exchange gains (losses) from hedging activities
|
528
|
(279
|
)
|
||||
(Provision
for) benefit of income taxes
|
(172
|
)
|
89
|
||||
Balance
at end of period
|
(666
|
)
|
(212
|
)
|
|||
Retained
earnings
|
|||||||
Balance
at beginning of period
|
10,650
|
9,540
|
|||||
Net
income
|
2,307
|
630
|
|||||
Common
dividends
|
(300
|
)
|
(236
|
)
|
|||
Preferred
dividends
|
(5
|
)
|
-
|
||||
Other
|
-
|
(18
|
)
|
||||
Balance
at end of period
|
12,652
|
9,916
|
|||||
Total
shareholders’ equity at end of period
|
$
|
18,473
|
$
|
13,203
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
20
|
INTERIM CONSOLIDATED STATEMENT OF CASH FLOWS (unaudited) | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
Cash
flows from (used in) operating activities
|
|||||||
Net
income
|
$
|
2,307
|
$
|
630
|
|||
Adjustments
to determine net cash flows from (used in) operating
activities
|
|||||||
Provision
for
credit losses
|
114
|
10
|
|||||
Restructuring
costs
|
50
|
-
|
|||||
Depreciation
|
85
|
62
|
|||||
Amortization
of
other intangibles
|
128
|
134
|
|||||
Stock
option expense
|
7
|
4
|
|||||
Dilution
gain,
net
|
(1,564
|
)
|
-
|
||||
Net
investment securities gains
|
(23
|
)
|
(52
|
)
|
|||
Gain
on
securitizations
|
(33
|
)
|
(39
|
)
|
|||
Non-controlling
interest
|
37
|
-
|
|||||
Changes
in operating assets and liabilities
|
|||||||
Future
income taxes
|
169
|
(48
|
)
|
||||
Current
income taxes payable
|
(47
|
)
|
(159
|
)
|
|||
Interest
receivable and payable
|
(44
|
)
|
365
|
||||
Trading
securities
|
(9,225
|
)
|
(9,084
|
)
|
|||
Unrealized
gains and amounts receivable on derivatives contracts
|
(130
|
)
|
(2,225
|
)
|
|||
Unrealized
losses and amounts payable on derivatives contracts
|
1,436
|
893
|
|||||
Other
|
(1,021
|
)
|
1,528
|
||||
Net
cash used in operating activities
|
(7,754
|
)
|
(7,981
|
)
|
|||
Cash
flows from (used in) financing activities
|
|||||||
Change
in deposits
|
5,000
|
15,069
|
|||||
Securities
sold under repurchase agreements
|
530
|
842
|
|||||
Securities
sold short
|
1,951
|
3,720
|
|||||
Issue
of subordinated notes and debentures
|
1,800
|
-
|
|||||
Repayment
of subordinated notes and debentures
|
(150
|
)
|
(2
|
)
|
|||
Subordinated
notes and debentures (acquired) sold in Wholesale Banking
|
1
|
5
|
|||||
Liability
for preferred shares and capital trust securities
|
(2
|
)
|
(350
|
)
|
|||
Translation
adjustment on subordinated notes and debentures issued in a foreign
currency
|
-
|
13
|
|||||
Common
shares issued on exercise of options
|
45
|
27
|
|||||
Common
shares issued as a result of dividend reinvestment plan
|
100
|
73
|
|||||
Common
shares (acquired) sold in Wholesale Banking
|
(2
|
)
|
2
|
||||
Dividends
paid on common shares
|
(300
|
)
|
(236
|
)
|
|||
Issuance
of preferred shares
|
425
|
-
|
|||||
Dividends
paid on preferred shares
|
(5
|
)
|
-
|
||||
Net
cash from financing activities
|
9,393
|
19,163
|
|||||
Cash
flows from (used in) investing activities
|
|||||||
Interest-bearing
deposits with banks
|
519
|
(1,225
|
)
|
||||
Activity
in investment securities
|
|||||||
Purchases
|
(11,088
|
)
|
(10,130
|
)
|
|||
Proceeds
from
maturities
|
5,345
|
2,916
|
|||||
Proceeds
from
sales
|
4,719
|
3,791
|
|||||
Activity
from lending activities
|
|||||||
Origination
and
acquisitions
|
(49,148
|
)
|
(18,160
|
)
|
|||
Proceeds
from
maturities
|
46,510
|
13,540
|
|||||
Proceeds
from
sales
|
333
|
1,061
|
|||||
Proceeds
from
loan securitizations
|
1,057
|
1,640
|
|||||
Land,
buildings and equipment
|
(75
|
)
|
27
|
||||
Securities
purchased under reverse repurchase agreements
|
1,536
|
(4,332
|
)
|
||||
Acquisition
and disposition less cash and cash equivalents acquired
|
(819
|
)
|
-
|
||||
Net
cash used in investing activities
|
(1,111
|
)
|
(10,872
|
)
|
|||
Effect
of exchange rate changes on cash and cash equivalents
|
(43
|
)
|
15
|
||||
Net
changes in cash and cash equivalents
|
485
|
325
|
|||||
Cash
and cash equivalents at beginning of period
|
1,673
|
1,404
|
|||||
Cash
and cash equivalents at end of period represented by cash and due
from
banks
|
$
|
2,158
|
$
|
1,729
|
|||
Supplementary
disclosure of cash flow information
|
|||||||
Amount
of interest paid during the period
|
$
|
2,281
|
$
|
1,587
|
|||
Amount
of income taxes paid during the period
|
343
|
331
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
21
|
Allowance for Credit Losses | |||||||||||||||||||
Jan.
31, 2006
|
Jan.
31, 2005
|
||||||||||||||||||
Specific
|
General
|
Specific
|
General
|
||||||||||||||||
(millions
of Canadian dollars)
|
allowance
|
allowance
|
Total
|
allowance
|
allowance
|
Total
|
|||||||||||||
Balance
at beginning of period
|
$
|
153
|
$
|
1,140
|
$
|
1,293
|
$
|
266
|
$
|
917
|
$
|
1,183
|
|||||||
Acquisition
of TD Banknorth (includes Hudson United)
|
-
|
69
|
69
|
-
|
-
|
-
|
|||||||||||||
Provision
for (reversal of) credit losses
|
120
|
(6
|
)
|
114
|
45
|
(35
|
)
|
10
|
|||||||||||
Write-offs
|
(152
|
)
|
-
|
(152
|
)
|
(111
|
)
|
-
|
(111
|
)
|
|||||||||
Recoveries
|
31
|
-
|
31
|
54
|
-
|
54
|
|||||||||||||
Other1
|
3
|
-
|
3
|
2
|
-
|
2
|
|||||||||||||
Allowance
for credit losses at end of period
|
$
|
155
|
$
|
1,203
|
$
|
1,358
|
$
|
256
|
$
|
882
|
$
|
1,138
|
New Securitization Activity | |||||||||||||||||||||||||||||||
For
the three months ended
|
For
the three months ended
|
||||||||||||||||||||||||||||||
Jan.
31, 2006
|
Jan.
31, 2005
|
||||||||||||||||||||||||||||||
Residential
|
Credit
|
Commercial
|
Residential
|
Credit
|
Commercial
|
||||||||||||||||||||||||||
mortgage
|
Personal
|
card
|
mortgage
|
mortgage
|
Personal
|
card
|
mortgage
|
||||||||||||||||||||||||
(millions
of Canadian dollars)
|
loans
|
loans
|
loans
|
loans
|
Total
|
loans
|
loans
|
loans
|
loans
|
Total
|
|||||||||||||||||||||
Gross
proceeds
|
$
|
1,056
|
$
|
737
|
$
|
1,300
|
$
|
-
|
$
|
3,093
|
$
|
1,649
|
$
|
471
|
$
|
1,300
|
$
|
-
|
$
|
3,420
|
|||||||||||
Retained
interest
|
16
|
5
|
26
|
-
|
47
|
35
|
3
|
24
|
-
|
$
|
62
|
||||||||||||||||||||
Cash
flows received on retained interests
|
57
|
8
|
44
|
-
|
109
|
44
|
10
|
43
|
2
|
$
|
99
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
22
|
Securitization Gains and Servicing Income | |||||||||||||||||||||||||||||||
For
the three months ended
|
For
the three months ended
|
||||||||||||||||||||||||||||||
Jan.
31, 2006
|
Jan.
31, 2005
|
||||||||||||||||||||||||||||||
Residential
|
Credit
|
Commercial
|
Residential
|
Credit
|
Commercial
|
||||||||||||||||||||||||||
mortgage
|
Personal
|
card
|
mortgage
|
mortgage
|
Personal
|
card
|
mortgage
|
||||||||||||||||||||||||
(millions
of Canadian dollars)
|
loans
|
loans
|
loans
|
loans
|
Total
|
loans
|
loans
|
loans
|
loans
|
Total
|
|||||||||||||||||||||
Gain
on sale1
|
$
|
3
|
$
|
5
|
$
|
25
|
$
|
-
|
$
|
33
|
$
|
14
|
$
|
3
|
$
|
22
|
$
|
-
|
$
|
39
|
|||||||||||
Servicing
income
|
37
|
4
|
18
|
-
|
59
|
23
|
10
|
21
|
-
|
54
|
|||||||||||||||||||||
Total
|
$
|
40
|
$
|
9
|
$
|
43
|
$
|
-
|
$
|
92
|
$
|
37
|
$
|
13
|
$
|
43
|
$
|
-
|
$
|
93
|
Key Assumptions | |||||||||||||||||||||||||
2006
|
2005
|
||||||||||||||||||||||||
Residential
|
Credit
|
Commercial
|
Residential
|
Credit
|
Commercial
|
||||||||||||||||||||
mortgage
|
Personal
|
card
|
mortgage
|
mortgage
|
Personal
|
card
|
mortgage
|
||||||||||||||||||
loans
|
loans
|
loans
|
loans
|
loans
|
loans
|
loans
|
loans
|
||||||||||||||||||
Prepayment
rate1
|
20.0
|
%
|
5.9
|
%
|
43.1
|
%
|
1.9
|
%
|
20.0
|
%
|
5.9
|
%
|
41.0
|
%
|
3.0
|
%
|
|||||||||
Excess
spread2
|
.6
|
1.0
|
14.4
|
-
|
.7
|
1.1
|
12.9
|
-
|
|||||||||||||||||
Discount
rate
|
5.1
|
3.6
|
4.2
|
9.8
|
5.0
|
3.1
|
4.2
|
9.8
|
|||||||||||||||||
Expected
credit losses3
|
-
|
-
|
2.6
|
.1
|
-
|
-
|
2.9
|
.1
|
1 Represents
monthly payment rate for personal and credit card
loans.
|
2 The
excess spread for credit card loans reflects the net portfolio yield,
which is interest earned and other revenues less funding costs and
losses.
|
3 There
are no expected credit losses for residential mortgage loans as these
mortgages are government
guaranteed.
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
23
|
Liabilities | |||||||
(millions
of Canadian dollars)
|
Jan.
31, 2006
|
Oct.
31, 2005
|
|||||
Preferred
Shares
|
|||||||
Preferred
shares issued by the Bank (thousands of shares):
|
|||||||
Class
A - 16 Series I
|
$
|
-
|
$
|
-
|
|||
Class
A - 14,000 Series M
|
350
|
350
|
|||||
Class
A - 8,000 Series N
|
200
|
200
|
|||||
550
|
550
|
||||||
Preferred
shares issued by TD Mortgage
|
|||||||
Investment
Corporation (thousands of shares):
|
|||||||
350
non-cumulative preferred shares, Series A
|
343
|
345
|
|||||
Total
Preferred shares
|
893
|
895
|
|||||
Capital
Trust Securities (thousands of units)1
|
|||||||
Trust
units issued by TD Capital Trust (900)
|
900
|
900
|
|||||
Total
Preferred Shares and Capital Trust Securities
|
$
|
1,793
|
$
|
1,795
|
Shares Issued and Outstanding | |||||||||||||
For
the three months ended
|
For
the three months ended
|
||||||||||||
Jan.
31, 2006
|
Oct.
31, 2005
|
||||||||||||
(millions
of shares and millions of Canadian dollars)
|
Number
of shares
|
Amount
|
Number
of shares
|
Amount
|
|||||||||
Common:
|
|||||||||||||
Balance
at beginning of period
|
711.8
|
5,872
|
709.0
|
5,744
|
|||||||||
Issued
on exercise of options
|
1.3
|
45
|
1.0
|
31
|
|||||||||
Issued
as a result of dividend reinvestment plan
|
1.6
|
100
|
1.9
|
104
|
|||||||||
Impact
of shares (acquired) sold in Wholesale Banking
|
-
|
(2
|
)
|
(0.1
|
)
|
(7
|
)
|
||||||
Issued
on the acquisition of TD Banknorth
|
-
|
-
|
-
|
-
|
|||||||||
Balance
at end of period - Common
|
714.7
|
$
|
6,015
|
711.8
|
5,872
|
||||||||
Preferred:
|
|||||||||||||
Class
A - Series O
|
17.0
|
$
|
425
|
-
|
$
|
-
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
24
|
For
the three months ended
|
|||||||
(million
of Canadian dollars)
|
Jan.
31
|
Jan.
31
|
|||||
2006
|
2005
|
||||||
TD
Bank
|
$
|
6
|
$
|
4
|
|||
TD
Banknorth
|
1
|
N/A
|
|||||
Total
|
$
|
7
|
$
|
4
|
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
2006
|
2005
|
||||||
Risk-free
interest rate
|
3.91
|
%
|
3.70
|
%
|
|||
Expected
option life
|
5.1
years
|
5.3
years
|
|||||
Expected
volatility
|
21.9
|
%
|
25.7
|
%
|
|||
Expected
dividend yield
|
2.88
|
%
|
2.84
|
%
|
Principal Pension Plan Pension Expense | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
Elements
of pension plan expense before adjustments to recognize the long
term
nature of the cost
|
|||||||
Service
cost - benefits earned
|
$
|
18
|
$
|
11
|
|||
Interest
cost on projected benefit obligation
|
26
|
26
|
|||||
Actual
return on plan assets
|
12
|
(31
|
)
|
||||
Plan
amendments
|
-
|
53
|
|||||
Adjustments
to recognize the long term nature of plan cost
|
|||||||
Difference
between costs arising in the period and costs recognized in the period
in
respect of:
|
|||||||
Return
on plan assets1
|
(44
|
)
|
3
|
||||
Actuarial
(gains) losses2
|
5
|
3
|
|||||
Plan
amendments3
|
2
|
(52
|
)
|
||||
Total
|
$
|
19
|
$
|
13
|
1 For
the
three months ended January 31, 2006, includes expected return on
plan
assets of $32 million (Q1/05 - $28 million) less actual return on
plan
assets of $(12) million (Q1/05 - $31 million).
|
2 For
the
three months ended January 31, 2006, includes loss recognized of
$5
million (Q1/05 - $3 million) less actuarial losses on projected benefit
obligation of nil (Q1/05 - nil).
|
3 For
the
three months ended January 31, 2006, includes amortization of costs
for
plan amendments of $2 million (Q1/05 - $1 million) less actual cost
amendments of nil (Q1/05 - $53
million).
|
Other Pension Plans’ Expense | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
CT
defined benefit pension plan
|
$
|
1
|
$
|
1
|
|||
TD
Banknorth defined benefit pension plans
|
2
|
N/A
|
|||||
Supplemental
employee retirement plans
|
8
|
6
|
|||||
Total
|
$
|
11
|
$
|
7
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
25
|
Principal Non-Pension Post-Retirement Benefit Plans Expense | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
Service
cost - benefits earned
|
$
|
3
|
$
|
3
|
|||
Interest
cost on projected benefit obligation
|
5
|
5
|
|||||
Plan
amendments
|
(65
|
)
|
-
|
||||
Difference
between costs arising in the period and costs recognized in the period
in
respect of:
|
|||||||
Actuarial
(gains) losses
|
2
|
-
|
|||||
Plan
amendments
|
64
|
-
|
|||||
Total
|
$
|
9
|
$
|
8
|
Pension Plan Contributions | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
Principal
pension plan
|
$
|
15
|
$
|
14
|
|||
CT
defined benefit pension plan
|
1
|
1
|
|||||
TD
Banknorth defined benefit pension plans
|
32
|
N/A
|
|||||
Supplemental
employee retirement plans
|
2
|
2
|
|||||
Non-pension
post-retirement benefit plans
|
2
|
2
|
|||||
Total
|
$
|
52
|
$
|
19
|
Basic and Diluted Earnings per Share | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
2006
|
2005
|
||||||
Basic
Earnings per Share
|
|||||||
Net
income available to common shares ($ millions)
|
$
|
2,302
|
$
|
630
|
|||
Average
number of common shares outstanding (millions)
|
712.5
|
656.6
|
|||||
Basic
earnings per share ($)
|
$
|
3.23
|
$
|
.96
|
|||
Diluted
Earnings per Share
|
|||||||
Net
income available to common shares ($ millions)
|
$
|
2,302
|
$
|
630
|
|||
Average
number of common shares outstanding (millions)
|
712.5
|
656.6
|
|||||
Stock
options potentially exercisable as determined under the treasury
stock
method1
|
6.4
|
5.3
|
|||||
Average
number of common shares outstanding - diluted (millions)
|
718.9
|
661.9
|
|||||
Diluted
earnings per share ($)
|
$
|
3.20
|
$
|
.95
|
1
For the three months ended January 31, 2006, the computation
of
diluted earnings per common share excluded weighted average options
outstanding of 945 thousand (Q1/05 - 1.1 million) with a weighted
exercise
price of $60.02 (Q1/05 - $49.40) as the options’ price was greater than
the average market price of the Bank’s common
shares.
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
26
|
Results by Business Segment | ||||||||||||||||||||||||||||||||||
Canadian
Personal
|
U.S.
Personal and
|
|||||||||||||||||||||||||||||||||
and
Commercial
|
Commercial
|
Wealth
|
||||||||||||||||||||||||||||||||
(millions
of Canadian dollars)
|
Banking
|
Banking
|
Wholesale
Banking1
|
Management
|
Corporate1
|
Total
|
||||||||||||||||||||||||||||
Jan.
31
|
Jan.
31
|
Jan.
31
|
Jan.
31
|
Jan.
31
|
Jan.
31
|
Jan.
31
|
Jan.
31
|
Jan.
31
|
Jan.
31
|
Jan.
31
|
||||||||||||||||||||||||
For
the three months ended
|
2006
|
2005
|
2006
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
2006
|
2005
|
|||||||||||||||||||||||
Net
interest income
|
$
|
1,177
|
$
|
1,089
|
$
|
284
|
$
|
138
|
$
|
278
|
$
|
178
|
$
|
145
|
$
|
(170
|
)
|
$
|
(101
|
)
|
$
|
1,607
|
$
|
1,411
|
||||||||||
Other
income
|
627
|
574
|
73
|
523
|
292
|
564
|
518
|
1,574
|
11
|
3,361
|
1,395
|
|||||||||||||||||||||||
Total
revenue
|
1,804
|
1,663
|
357
|
661
|
570
|
742
|
663
|
1,404
|
(90
|
)
|
4,968
|
2,806
|
||||||||||||||||||||||
Provision
for (reversal of) credit losses
|
99
|
95
|
7
|
29
|
13
|
-
|
-
|
(21
|
)
|
(98
|
)
|
114
|
10
|
|||||||||||||||||||||
Non-interest
expenses
|
985
|
924
|
225
|
395
|
332
|
525
|
508
|
160
|
181
|
2,290
|
1,945
|
|||||||||||||||||||||||
Income
(loss) before provision for (benefit of) income taxes
|
720
|
644
|
125
|
237
|
225
|
217
|
155
|
1,265
|
(173
|
)
|
2,564
|
851
|
||||||||||||||||||||||
Provision
for (benefit of) income taxes
|
244
|
220
|
42
|
73
|
84
|
79
|
57
|
(218
|
)
|
(140
|
)
|
220
|
221
|
|||||||||||||||||||||
Non-controlling
interest
|
-
|
-
|
37
|
-
|
-
|
-
|
-
|
-
|
-
|
37
|
-
|
|||||||||||||||||||||||
Net
income (loss)
|
$
|
476
|
$
|
424
|
$
|
46
|
$
|
164
|
$
|
141
|
$
|
138
|
$
|
98
|
$
|
1,483
|
$
|
(33
|
)
|
$
|
2,307
|
$
|
630
|
|||||||||||
Total
assets (billions of Canadian dollars)
|
||||||||||||||||||||||||||||||||||
-
balance sheet
|
$
|
133.5
|
$
|
123.3
|
$
|
48.0
|
$
|
165.1
|
$
|
165.9
|
$
|
23.9
|
$
|
27.0
|
$
|
13.9
|
$
|
17.1
|
$
|
384.4
|
$
|
333.3
|
||||||||||||
-
securitized
|
33.6
|
31.5
|
-
|
-
|
-
|
-
|
-
|
(9.9
|
)
|
(10.3
|
)
|
23.7
|
21.2
|
1 The
taxable equivalent basis adjustment is reflected primarily in the
Wholesale Banking segment’s results and eliminated in the Corporate
segment.
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
27
|
Net Income | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
20061
|
2005
|
|||||
Net
income based on Canadian GAAP
|
$
|
2,307
|
$
|
630
|
|||
Employee
future benefits
|
2
|
-
|
|||||
Securitizations
|
-
|
(2
|
)
|
||||
Available
for sale securities
|
6
|
2
|
|||||
Derivative
instruments and hedging activities
|
(33
|
)
|
(88
|
)
|
|||
Guarantees
|
(6
|
)
|
(3
|
)
|
|||
Liabilities
and equity
|
39
|
29
|
|||||
Amortization
of intangible assets
|
(15
|
)
|
-
|
||||
Other
|
(26
|
)
|
-
|
||||
Income
taxes and net change in income taxes due to the above
items
|
25
|
43
|
|||||
Non-controlling
interest
|
(6
|
)
|
(23
|
)
|
|||
Net
income based on U.S. GAAP
|
2,293
|
588
|
|||||
Preferred
dividends
|
23
|
6
|
|||||
Net
income applicable to common shares based on U.S.
GAAP
|
$
|
2,270
|
$
|
582
|
|||
Average
number of common shares outstanding (millions)
|
|||||||
Basic - U.S. GAAP/Canadian GAAP
|
712.5
|
656.6
|
|||||
Diluted - U.S. GAAP/Canadian GAAP
|
718.9
|
661.9
|
|||||
Basic
earnings per share - U.S.
GAAP
|
3.19
|
.89
|
|||||
-
Canadian GAAP
|
3.23
|
.96
|
|||||
Diluted
earnings per share - U.S. GAAP
|
3.16
|
.88
|
|||||
-
Canadian GAAP
|
3.20
|
.95
|
Consolidated Interim Statement of Comprehensive Income | |||||||
For
the three months ended
|
|||||||
Jan.
31
|
Jan.
31
|
||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
|||||
Net
income based on U.S. GAAP
|
$
|
2,293
|
$
|
588
|
|||
Other
comprehensive income (loss), net of income taxes
|
|||||||
Net
change in unrealized gains and losses on available for sale
securities
|
(49
|
)
|
123
|
||||
Reclassification
to earnings in respect of available for sale securities
|
-
|
5
|
|||||
Change
in unrealized foreign currency translation gains and
losses
|
30
|
53
|
|||||
Change
in gains and losses on derivative instruments designated as cash
flow
hedges
|
79
|
(124
|
)
|
||||
Reclassification
to earnings of gains and losses on cash flow hedges
|
18
|
5
|
|||||
Comprehensive
income
|
$
|
2,371
|
$
|
650
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
28
|
Condensed Consolidated Interim Balance Sheet | ||||||||||||||||||||||||||||
As
at
|
As
at
|
As
at
|
||||||||||||||||||||||||||
Jan.
31
|
Oct.
31
|
Jan.
31
|
||||||||||||||||||||||||||
(millions
of Canadian dollars)
|
2006
|
2005
|
2005
|
|||||||||||||||||||||||||
Canadian
|
Adjust-
|
U.S.
|
Canadian
|
Adjust-
|
U.S.
|
Canadian
|
Adjust-
|
U.S.
|
||||||||||||||||||||
GAAP
|
ments
|
GAAP
|
GAAP
|
ments
|
GAAP
|
GAAP
|
ments
|
GAAP
|
||||||||||||||||||||
Assets
|
||||||||||||||||||||||||||||
Cash
resources and other
|
$
|
13,384
|
$
|
-
|
$
|
13,384
|
$
|
13,418
|
$
|
-
|
$
|
13,418
|
$
|
10,588
|
$
|
-
|
$
|
10,588
|
||||||||||
Securities
|
||||||||||||||||||||||||||||
Investment
|
46,376
|
4,053
|
50,429
|
42,321
|
3,898
|
46,219
|
34,862
|
4,349
|
39,211
|
|||||||||||||||||||
Trading
|
75,000
|
-
|
75,000
|
65,775
|
-
|
65,775
|
75,977
|
-
|
75,977
|
|||||||||||||||||||
Securities
purchased under reverse repurchase agreements
|
24,847
|
-
|
24,847
|
26,375
|
-
|
26,375
|
26,220
|
-
|
26,220
|
|||||||||||||||||||
Loans
(net)
|
154,959
|
-
|
154,959
|
152,243
|
-
|
152,243
|
125,833
|
-
|
125,833
|
|||||||||||||||||||
Trading
derivatives’ market revaluation
|
33,781
|
962
|
34,743
|
33,651
|
674
|
34,325
|
35,922
|
1,376
|
37,298
|
|||||||||||||||||||
Goodwill
|
7,376
|
1,604
|
8,980
|
6,518
|
1,604
|
8,122
|
2,245
|
64
|
2,309
|
|||||||||||||||||||
Intangible
assets
|
2,275
|
358
|
2,633
|
2,124
|
338
|
2,462
|
2,010
|
33
|
2,043
|
|||||||||||||||||||
Other
assets
|
26,379
|
997
|
27,376
|
22,785
|
22
|
22,807
|
19,660
|
9
|
19,669
|
|||||||||||||||||||
Total
assets
|
$
|
384,377
|
$
|
7,974
|
$
|
392,351
|
$
|
365,210
|
$
|
6,536
|
$
|
371,746
|
$
|
333,317
|
$
|
5,831
|
$
|
339,148
|
||||||||||
Liabilities
|
||||||||||||||||||||||||||||
Deposits
|
$
|
256,285
|
$
|
27
|
$
|
256,312
|
$
|
246,981
|
$
|
21
|
$
|
247,002
|
$
|
221,962
|
$
|
-
|
$
|
221,962
|
||||||||||
Trading
derivatives’ market revaluation
|
34,934
|
989
|
35,923
|
33,498
|
598
|
34,096
|
34,766
|
1,200
|
35,966
|
|||||||||||||||||||
Other
liabilities
|
62,820
|
5,050
|
67,870
|
60,224
|
4,037
|
64,261
|
55,516
|
4,184
|
59,700
|
|||||||||||||||||||
Subordinated
notes, debentures and other debt
|
7,225
|
-
|
7,225
|
5,138
|
-
|
5,138
|
5,660
|
-
|
5,660
|
|||||||||||||||||||
Liabilities
for preferred shares and Capital Trust Securities
|
1,793
|
(1,793
|
)
|
-
|
1,795
|
(1,795
|
)
|
-
|
2,210
|
(2,210
|
)
|
-
|
||||||||||||||||
Total
liabilities
|
363,057
|
4,273
|
367,330
|
347,636
|
2,861
|
350,497
|
320,114
|
3,174
|
323,288
|
|||||||||||||||||||
Non-controlling
interest
|
2,847
|
3,161
|
6,008
|
1,708
|
3,149
|
4,857
|
-
|
1,250
|
1,250
|
|||||||||||||||||||
Shareholders’
equity
|
||||||||||||||||||||||||||||
Preferred
shares
|
425
|
543
|
968
|
-
|
545
|
545
|
-
|
960
|
960
|
|||||||||||||||||||
Common
shares
|
6,015
|
39
|
6,054
|
5,872
|
39
|
5,911
|
3,475
|
38
|
3,513
|
|||||||||||||||||||
Contributed
surplus
|
47
|
-
|
47
|
40
|
-
|
40
|
24
|
1
|
25
|
|||||||||||||||||||
Foreign
currency translation
|
(666
|
)
|
666
|
-
|
(696
|
)
|
696
|
-
|
(212
|
)
|
212
|
-
|
||||||||||||||||
Retained
earnings
|
12,652
|
(278
|
)
|
12,374
|
10,650
|
(246
|
)
|
10,404
|
9,916
|
(155
|
)
|
9,761
|
||||||||||||||||
Accumulated
other comprehensive income
|
||||||||||||||||||||||||||||
Net
unrealized gains on available for sale securities
|
-
|
231
|
231
|
-
|
280
|
280
|
-
|
426
|
426
|
|||||||||||||||||||
Foreign
currency translation adjustments
|
-
|
(666
|
)
|
(666
|
)
|
-
|
(696
|
)
|
(696
|
)
|
-
|
(212
|
)
|
(212
|
)
|
|||||||||||||
Derivative
instruments
|
-
|
43
|
43
|
-
|
(54
|
)
|
(54
|
)
|
-
|
142
|
142
|
|||||||||||||||||
Minimum
pension liability adjustment
|
-
|
(38
|
)
|
(38
|
)
|
-
|
(38
|
)
|
(38
|
) |
-
|
(5
|
)
|
(5
|
)
|
|||||||||||||
Total
shareholders’ equity
|
18,473
|
540
|
19,013
|
15,866
|
526
|
16,392
|
13,203
|
1,407
|
14,610
|
|||||||||||||||||||
Total
liabilities and shareholders’ equity
|
$
|
384,377
|
$
|
7,974
|
$
|
392,351
|
$
|
365,210
|
$
|
6,536
|
$
|
371,746
|
$
|
333,317
|
$
|
5,831
|
$
|
339,148
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
29
|
TD
BANK FINANCIAL GROUP •
FIRST QUARTER REPORT 2006
|
Page
30
|