KEY PRODUCT GROUPS Personal Banking • Personal Deposits – offers a full suite of chequing, savings and investment products to retail clients across Canada.
• Consumer Lending – offers a diverse range of financing products to suit the needs of retail clients across Canada.
• Credit Cards and Merchant Solutions – offers a range of credit card products including proprietary, co-branded and affinity credit card programs.
• Auto Finance – offers retail automotive and recreational vehicle financing through an extensive network of dealers across Canada.
Business Banking • Commercial Banking – serves the needs of Canadian businesses across a wide range of industries.
• Small Business Banking – offers a wide range of financial products and services to small businesses across Canada.
Wealth • Direct Investing – offers a comprehensive product and service offering to self-directed retail investors.
• Advice-based business – offers financial planning and private wealth services to help clients protect, grow and transition their wealth. The advice-based wealth business has a strong partnership with the Canadian personal and commercial banking businesses.
• Asset Management – TDAM is a leading investment manager with deep retail and institutional capabilities. TD Mutual Funds is a leading mutual fund business, providing a broadly diversified range of mutual funds and professionally managed portfolios. TDAM’s institutional investment business has a leading market share in Canada and includes clients of some of the largest pension funds, endowments, and corporations in Canada. All asset management units work in close partnership with other TD businesses, including the advice-based wealth business and retail banking, to align products and services to ensure a legendary client experience.
Insurance • Property and Casualty – TD is the largest direct distribution insurer9 and the fourth largest personal insurer9 national leader in the affinity market9
in Canada. It is also the offering home and auto
insurance to members of affinity groups such as professional associations, universities and employer groups, and other customers, through direct channels.
• Life and Health – offers credit protection and travel insurance products mostly distributed through TD Canada Trust branches. Other simple life and health insurance products and credit card balance protection are distributed through direct channels.
BUSINESS OUTLOOK AND FOCUS FOR 2017 The Canadian Retail business will remain focused on delivering legendary customer service and convenience across all channels and deepening client relationships. We anticipate ongoing regulatory pressures and expect another year of moderate earnings growth due to the challenging operating environment. Over the next year, we expect moderate pressure on margins due to the impact of the sustained low interest rate environment and competitive pricing in the market. We expect the personal loan growth rate to be in-line with current year levels. Business lending is forecasted to remain strong as we maintain our focus on winning market share. Wealth asset acquisition is expected to be strong; however, benefits from market appreciation next year are subject to capital markets performance. Insurance results will continue to depend upon, among other things, the frequency and severity of weather-related events, as well as the impact of regulatory reforms and legislative changes. We expect an increase in credit losses for 2017 driven by volume growth. We will maintain our disciplined approach to expense management while making necessary investments in our business and infrastructure.
Our key priorities for 2017 are as follows: • Continue to deliver legendary customer experiences while building on our lead in digital engagement to enable omni- channel experiences.
• Deliver organic growth by deepening relationships and focusing on underrepresented products and markets.
• Accelerate our growth in the Wealth Advice channels, enrich the client offering in the Direct Investing business, and innovate for leadership in Asset Management.
• Continue to invest in our insurance products and services, ensuring that they are competitive, easy to understand and provide the protection our clients need.
• Keep our focus on productivity and simplify key processes to enhance customer experience, employee satisfaction, and shareholder value.
• Continue to be an extraordinary place to work.
9
Based on Gross Written Premiums for Property and Casualty business. Ranks based on data available from OSFI, Insurers, Insurance Bureau of Canada and Provincial Regulators, as at December 31, 2015.
30 TD BANK GROUP ANNUAL REPORT 2016 MANAGEMENT’S DISCUSSION AND ANALYSIS
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