Performance Indicators1
Performance indicators focus effort, communicate our priorities, and benchmark TD’s performance as we strive to be the even Better Bank. The following table highlights our performance against these indicators.
2016 PERFORMANCE INDICATORS FINANCIAL
• Deliver above-peer-average total shareholder return2 • Grow earnings per share (EPS) by 7 to 10% • Deliver above-peer-average return on risk-weighted assets3
BUSINESS OPERATIONS • Grow revenue4
faster than expenses
CUSTOMER • Improve Legendary Experience Index (LEI)5 Experience Index (CEI)6
scores • Invest in core businesses to enhance customer experience EMPLOYEE
• Improve employee engagement score year over year • Enhance the employee experience by: – Listening to our employees – Building employment diversity – Providing a healthy, safe, and flexible work environment – Providing competitive pay, benefits, and performance- based compensation
– Investing in training and development
COMMUNITY • Donate minimum of 1% of domestic pre-tax profits (five-year average) to charitable and not-for-profit organizations
• Make positive contributions by: – Supporting employees’ community involvement and fundraising efforts
– Supporting advancements in our areas of focus, which include education and financial literacy, creating opportunities for young people, creating opportunities for affordable housing, and the environment
– Protecting and preserving the environment
• $102.8 million in donations and community sponsorships across North America and the U.K. vs. $92.5 million in 2015
• 1.2% of domestic pre-tax profits in donations and community sponsorships in Canada vs.1.3% in 20158
• $245,000 in domestic employee volunteer grants to 406 different organizations
• $38.8 million, or 56.9%, of our community giving was directed to promote our areas of focus domestically
• $5.7 million distributed to 1,113 community environmental projects through TD Friends of the Environment Foundation; an additional $9.3 million from TD’s community giving budget was used to support environmental projects
1
Performance indicators that include an earnings component are based on TD’s full-year adjusted results (except as noted) as explained in footnote 1 on page 2. For peers, earnings have been adjusted on a comparable basis to exclude identified non-underlying items.
2 3
TSR is calculated based on share price movement and dividends reinvested over a trailing one year period.
Return on CET1 RWA measured year-to-date as at October 31, 2016, for comparison purposes. Each capital ratio has its own RWA measure due to the OSFI prescribed scalar for inclusion of the CVA. The scalars for inclusion of the CVA for CET1, Tier 1, and Total Capital RWA are 64%, 71%, and 77%, respectively. 4 Revenue is net of insurance claims and related expenses.
5
LEI is a new survey measurement program that tracks customers’ experience and their overall relationship with TD. LEI was launched for TDCT and TD Bank retail programs in fiscal 2015, replacing CEI.
6
CEI is a survey measurement program that tracks advocacy among TD Wealth and TD Insurance customers. TD Wealth and TD Insurance CEI programs will be transitioned to LEI programs in fiscal 2018.
7 Scale for employee engagement score is from one to five. 8
Calculated based on Canadian cash donations/five-year rolling average domestic net income before tax.
• Employee engagement score7 was 4.18 in 2016 vs. 4.17 in 2015
• Refer to TD’s 2016 Corporate Responsibility Report available April 2017
RESULTS1
• 17.9% vs. Canadian peer average of 15.4% • 6% EPS growth • 2.31% vs. Canadian peer average of 2.15%3
• Total revenue growth of 10% vs. total expense growth of 8% • Refer to “Business Segment Analysis” in the 2016 MD&A for details
and Customer
• LEI/CEI composite score 45.3% (target 46.5%) • Refer to “Business Segment Analysis” in the 2016 MD&A for details
4
TD BANK GROUP ANNUAL REPORT 2016 PERFORMANCE INDICATORS
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52 |
Page 53 |
Page 54 |
Page 55 |
Page 56 |
Page 57 |
Page 58 |
Page 59 |
Page 60 |
Page 61 |
Page 62 |
Page 63 |
Page 64 |
Page 65 |
Page 66 |
Page 67 |
Page 68 |
Page 69 |
Page 70 |
Page 71 |
Page 72 |
Page 73 |
Page 74 |
Page 75 |
Page 76 |
Page 77 |
Page 78 |
Page 79 |
Page 80 |
Page 81 |
Page 82 |
Page 83 |
Page 84 |
Page 85 |
Page 86 |
Page 87 |
Page 88 |
Page 89 |
Page 90 |
Page 91 |
Page 92 |
Page 93 |
Page 94 |
Page 95 |
Page 96 |
Page 97 |
Page 98 |
Page 99 |
Page 100 |
Page 101 |
Page 102 |
Page 103 |
Page 104 |
Page 105 |
Page 106 |
Page 107 |
Page 108 |
Page 109 |
Page 110 |
Page 111 |
Page 112 |
Page 113 |
Page 114 |
Page 115 |
Page 116 |
Page 117 |
Page 118 |
Page 119 |
Page 120 |
Page 121 |
Page 122 |
Page 123 |
Page 124 |
Page 125 |
Page 126 |
Page 127 |
Page 128 |
Page 129 |
Page 130 |
Page 131 |
Page 132 |
Page 133 |
Page 134 |
Page 135 |
Page 136 |
Page 137 |
Page 138 |
Page 139 |
Page 140 |
Page 141 |
Page 142 |
Page 143 |
Page 144 |
Page 145 |
Page 146 |
Page 147 |
Page 148 |
Page 149 |
Page 150 |
Page 151 |
Page 152 |
Page 153 |
Page 154 |
Page 155 |
Page 156 |
Page 157 |
Page 158 |
Page 159 |
Page 160 |
Page 161 |
Page 162 |
Page 163 |
Page 164 |
Page 165 |
Page 166 |
Page 167 |
Page 168 |
Page 169 |
Page 170 |
Page 171 |
Page 172 |
Page 173 |
Page 174 |
Page 175 |
Page 176 |
Page 177 |
Page 178 |
Page 179 |
Page 180 |
Page 181 |
Page 182 |
Page 183 |
Page 184 |
Page 185 |
Page 186 |
Page 187 |
Page 188 |
Page 189 |
Page 190 |
Page 191 |
Page 192 |
Page 193 |
Page 194 |
Page 195 |
Page 196 |
Page 197 |
Page 198 |
Page 199 |
Page 200 |
Page 201 |
Page 202 |
Page 203 |
Page 204 |
Page 205 |
Page 206 |
Page 207 |
Page 208 |
Page 209 |
Page 210 |
Page 211 |
Page 212
