Year at a Glance1
Record Reported Earnings of $8.9 billion in 2016
TD announced record reported earnings for the seventh consecutive year driven by growth in our U.S. Retail and Wholesale businesses.
TD Shares Reach an All-Time High
TD common shares reached an all-time high of $61.03 on October 31, 2016. TD also ranked #1 or #2 over the one, three, five and ten year time frames for Total Shareholder Return (TSR) among the Big 5 banks2
.
Tuck-in Acquisitions to Further Strengthen U.S. Businesses
TD Securities announced an agreement to acquire Albert Fried & Company, a New York based broker-dealer with a prime brokerage technology platform. TD also announced an agreement to acquire Scottrade Bank, in conjunction with TD Ameritrade’s agreement to acquire Scottrade’s discount brokerage business3
TD Canada Trust Remains the Leader in Service and Convenience
.
TD Canada Trust (TDCT) retained the #1 spot in “Customer Service Excellence” among the Big 5 Canadian Banks for the twelfth consecutive year according to Ipsos. In addition, TDCT continued to lead in credit cards and total personal deposit market share and maintained the #2 position for business loan and deposit market share4,5
.
Returning Capital to TD Shareholders
TD raised its quarterly dividend 8% from the previous year and repurchased 9.5 million shares to offset dilution from the Bank’s dividend reinvestment plan and issuances related to stock options.
Record Year in Wealth Management
TD Wealth delivered double-digit growth and over $1 billion in global earnings and surpassed the $700 billion mark in total assets under management and administration. TD Direct Investing launched the new WebBroker Platform and successfully migrated over 1.5 million clients. The Advice businesses posted record assets and delivered earnings growth of over 25%. TD Asset Management, including Epoch, accumulated record assets under management of over $300 billion.
Momentum in TD Securities
TD Securities (TDS) achieved net income of $920 million and ROE of 16% in 2016. TDS grew corporate loans by 28%; further expanded its U.S. capabilities and client offerings; maintained top three dealer status in Canada in key product markets; and attained the #1 ranking overall in Thomson Reuters Analyst Awards for equity research6,7
TD Bank, America’s Most Convenient Bank® Record Earnings
delivers .
TD’s U.S. Retail segment delivered US$2.2 billion in earnings, up 11% from the prior year, and TD Bank, America’s Most Convenient Bank won the J.D. Power U.S. Retail Banking Satisfaction Award for the Florida Region8
.
TD Insurance Continues to Lead in Direct to Consumer and Affinity Personal Home and Auto Insurance in Canada
TD Insurance (TDI) continues to enhance its claims handling and industry leading digital quoting and advice capabilities. In 2016, it launched the first one-stop-shop auto claims collision centre in Canada. TDI also raised the bar on customer support during the Fort McMurray wildfires, the costliest natural disaster in Canadian history. TD is ranked first in balance protection for credit cards and second in credit protection insurance among the Big 5 banks9,10,11
.
TD Remains a Direct Channels Leader in Canada
TD ranked first in Canadian mobile banking with the highest number of mobile unique visitors according to Comscore. TD was also recognized for its leadership in customer service excellence among the Big 5 Canadian Banks for automated teller machines (ATM), online and mobile banking according to Ipsos4,12
.
TD Continues to Deliver Innovative Solutions to Help Customers Live their Lives
TD introduced TD My Spend, a money management app that provides customers with real time insight into their spending. TD also introduced TD for Me. A companion to TD’s Canadian banking app, it provides customers with personalized experiences, offers and reminders. Both are firsts for Canadian financial institutions. In the U.S., TD launched its Next Generation Digital platform, including a redesigned app for iOS and Android devices with more than 20 new features.
TD Provides Leadership in the Transition to the Low Carbon Economy
In 2016, TD became the first Canadian company to join both the RE100, a global initiative to help increase renewable energy demand, and CDP’s program to reduce carbon in the supply chain. Alongside a group of Canadian industry leaders, TD joined the Carbon Pricing Leadership Coalition to support the Canadian government’s commitment to reduce carbon emissions. In 2016, TD was the highest scoring Canadian bank on the CDP Climate Disclosure Leadership Index and the only Canadian bank listed on the Dow Jones Sustainability World Index.
1
The Toronto-Dominion Bank (the “Bank” or “TD”) prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards (IFRS), 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 to arrive at “adjusted” results to assess each of its businesses and to measure overall Bank performance. To arrive at adjusted results, the Bank removes “items of note”, net of income taxes, from reported results. Refer to the “Financial Results Overview” in the accompanying 2016 Management’s Discussion and Analysis (MD&A) for further explanation, a list of the items of note, and a reconciliation of non-GAAP financial measures.
“Five-year CAGR” is the compound annual growth rate calculated from 2011 to 2016 on a reported and adjusted basis.
Reference to retail earnings includes the total reported earnings of the Canadian Retail and U.S. Retail segments.
2
TSR is calculated based on share price movements and dividends reinvested over the trailing one, three, five, and ten year periods ending October 31, 2016. Source: Bloomberg. Canadian peers include Royal Bank of Canada, Scotiabank, Bank of Montreal and Canadian Imperial Bank of Commerce.
3
Scottrade Bank is a federal savings bank wholly-owned by Scottrade Financial Services Inc.
2
TD BANK GROUP ANNUAL REPORT 2016 YEAR AT A GLANCE
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