Group President and CEO’s Message ENRICHING LIVES
TD strives to enrich the lives of its customers, communities and colleagues every day. This core purpose enables us to compete, win and grow in ways that create long-term shareholder value. Indeed, we delivered record earnings of $8.9 billion in 2016. Canadian Retail represented approximately two-thirds of our total earnings, with contributions coming from across all of our businesses including personal and commercial, wealth, and insurance. Our U.S. business continued to grow at an impressive pace with results driven by peer-leading loan and deposit volume growth. TD Securities delivered strong results as well, and improved its market position in Canada in key areas while continuing its growth momentum in the U.S. Shareholders earned $2.16 per share in dividend payout. TD achieved above average Total Shareholder Return among our Big 5 peers over the short, medium and long term. Common Equity Tier 1 capital ratio of 10.4% speaks to our enduring financial strength.
THE PROMISES WE MAKE
These results point to the strength of our diverse business mix, winning growth strategy and the investments we continue to make in our business to ensure we can compete, win and grow. But, more fundamentally, they stem from our clarity of purpose and the promises we make.
Customers
To our customers, we know they don’t live to bank, they bank to live. In 2016, we continued to simplify processes and empower our people to make it easier for our customers to do business with us. We also introduced a number of innovations to elevate their experiences. For instance, TD can now serve its customers through Facebook Messenger, a preferred channel by many – TD was, in fact, the first bank in the world to do so. What’s more, this past June, we launched TD MySpend, which enables customers to easily track their spending habits in real time. Already, we have more than 700,000 registered users and this is just one example of our approach to meeting our customers’ evolving needs. All this helps explain why we are ranked among the world’s leading online financial services firms, with approximately 11 million active digital customers.
Communities
Helping communities thrive is a business imperative for TD. We know that we can only be successful if the communities in which we operate are vibrant places to live and work. This includes investing our time and money in various environmental and educational initiatives. In 2016, we continued to create more green spaces and helped hundreds of thousands of people gain the knowledge, skills and confidence to manage their finances responsibly.
TD’s community efforts took on special meaning in Fort McMurray, Alberta, where many people were left in extreme and, in some cases, desperate situations. I was very proud of how TD colleagues all across the Bank came together to support this community in their time of greatest need.
Colleagues
Whether serving our customers or communities, we know that our people are the ones who make a difference. We work hard to create an environment where our colleagues can be their best and do their best. To this end, we foster an inclusive culture, and provide our colleagues with meaningful work and growth opportunities. We entrust them to think like a customer and act like an owner to enhance our brand and business. I was pleased that these efforts continued to earn awards and accolades in both the U.S. and Canada in 2016.
ENDURING PURPOSE
Looking forward, economic headwinds will likely persist. The competitive landscape will continue to intensify, as both traditional and new entrants deploy innovative technologies. Regulatory changes will require business models to evolve. And financial institutions need to contend with new and emerging threats including cyber-security.
None of this, however, will distract us from the promises we’ve made to our customers, communities and colleagues or the values we hold dear. Ultimately, our purpose – to enrich lives – will continue to guide TD and, in turn, will enable us to deliver superior results for our shareholders. I am confident that we have the right strategies and are making the right investments to enable us to compete, win and grow in the future.
Thank you for the confidence you have placed in TD. We work hard every day to earn your trust and look forward to continuing to do so.
Bharat Masrani Group President and Chief Executive Officer
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TD BANK GROUP ANNUAL REPORT 2016 GROUP PRESIDENT AND CEO’S MESSAGE
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