6 CEO’s Message Responsible for Sustaining Public Trust

I have long held the view that a bank’s primary purpose is to create wealth in the real economy. Banking means helping clients start and grow their businesses, helping customers save for retirement and borrow sensibly to achieve their goals, protecting people’s money and enabling money to move around the world quickly and safely. But the financial crisis of 2008 revealed a culture of greed and dishonesty that shocked the public and undermined their trust – even in those of us who were not involved. News of more recent financial institution misdeeds has added fuel to the fire. The fact that many countries will face negative or slow growth for years to come and that unemployment continues to be a worry reinforces anger and resentment toward the banks.

If ever there were a time to demonstrate commitment to corporate social responsibility, that time is now. The world’s banks cannot underestimate the impact of the decisions they make. In my view, one clear outcome of the financial crisis is the realization that banks and their place in the financial system matter. We all play a role in regaining the public’s trust and we will do so by ensuring our activities add value to the economy and by taking meaningful steps toward a sustainable future.

In the years leading up to and through the financial crisis, decisions we made at TD have reinforced our commitment to “old-fashioned banking.” We see ourselves as custodi- ans of a great institution. Our chief responsibility – both social and financial – is to ensure that we hand over to our successors a better institution than the one we joined. That responsibility permeates everything we do and guides us in how we run the bank. It means putting customers first; creating a diverse, inclusive and engaging workplace; and showing through actions as well as words that we take our responsibility for the environment seriously. We take only risks we understand and can manage. We foster transparency that begins with our Board of Directors and is modelled daily by our leaders. Transparency breeds honesty and integrity. It allows mistakes to be identified and dealt with before they become unmanageable.

For concepts like these to have real weight they have to be built into the fabric of the organization. That’s why we have embedded them in our strategy, Guiding Principles and Leadership Profile. And it’s why we bring our organiza- tional capacity to tackle issues that are material to TD and our stakeholders: financial literacy, protecting forest habitats and creating a more inclusive bank.

As we adapt to the realities of a low-interest-rate environ- ment, the prospect of slower loan growth in Canada and the challenging regulatory environment in the U.S., we will look at ways to be more efficient and to add new revenue streams. But what won’t change is our focus on people: our customers, employees and communities. This focus is the heart and soul of TD, and it’s what makes us unique in the world.

We believe our clients’ and customers’ success is our success. It follows that if we continuously do the right thing inside and outside the bank, we will reassure our customers that choosing to bring their business to us is the right decision. Our employees will continue to be proud to say they work for TD, and our communities will see us for what we aspire to be: principled, strong and relevant and committed to the long-term social, environmental and financial health of the real economies we serve. The decisions we make and the actions we take speak to who we are and can help influence the level of trust in our industry. Taking responsibility for this is being The Better Bank.

Ed Clark, Group President and Chief Executive Officer TD 2012 Corporate Responsibility Report