FINANCIAL RESULTS OVERVIEW CORPORATE OVERVIEW


The Toronto-Dominion Bank and its subsidiaries are collectively known as TD Bank Group (“TD” or the “Bank”). TD is the sixth largest bank in North America by branches and serves 25 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; U.S. Retail, including TD Bank, America’s Most Convenient Bank,®


HOW THE BANK REPORTS


TD Auto Finance U.S., TD Wealth (U.S.), and an investment in TD Ameritrade; and Wholesale Banking, including TD Securities. TD also ranks among the world’s leading online financial services firms, with approximately 11 million active online and mobile customers. TD had $1.2 trillion in assets as at October 31, 2016. The Toronto-Dominion Bank trades under the symbol “TD” on the Toronto and New York Stock Exchanges.


The Bank prepares its Consolidated Financial Statements in accordance with IFRS, the current generally accepted accounting principles (GAAP), and refers to results prepared in accordance with IFRS as “reported” results. The Bank also utilizes non-GAAP financial measures referred to as “adjusted” results to assess each of its businesses and to measure the Bank’s overall performance. To arrive at adjusted results, the Bank removes “items of note”, net of income taxes, from reported results. The items of note relate to items which management does not believe are indicative of underlying business performance. The Bank believes that adjusted results provide the reader with a better understanding of how management views the Bank’s performance. The items of note are disclosed in Table 2. As explained, adjusted results differ from reported results determined in accordance with IFRS. Adjusted results, items of note, and related terms used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers.


The following table provides the operating results on a reported basis for the Bank.


T ABLE 1 OPERATING RESULTS – Reported


(millions of Canadian dollars) Net interest income


Non-interest income Total revenue


Provision for credit losses


Insurance claims and related expenses Non-interest expenses


Income before income taxes and equity in net income of an investment in TD Ameritrade Provision for income taxes


Equity in net income of an investment in TD Ameritrade Net income – reported


Preferred dividends


Net income available to common shareholders and non-controlling interests in subsidiaries Attributable to:


Common shareholders Non-controlling interests


2016


$ 19,923 14,392


34,315 2,330 2,462


18,877 10,646


2,143 433


8,936 141


$ 8,795


$ 8,680 115


2015


$ 18,724 12,702


31,426 1,683 2,500


18,073 9,170


1,523 377


8,024 99


$ 7,925


$ 7,813 112


2014


$ 17,584 12,377


29,961 1,557 2,833


16,496 9,075


1,512 320


7,883 143


$ 7,740


$ 7,633 107


12 TD BANK GROUP ANNUAL REPORT 2016 MANAGEMENT’S DISCUSSION AND ANALYSIS


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