TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 1

TD Bank Group Reports First Quarter 2024 Results

Earnings News Release

 •

Three months ended January 31, 2024

This quarterly Earnings News Release should be read in conjunction with the Bank’s unaudited first quarter 2024 Report to Shareholders for the three months

ended January 31, 2024, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards

Board (IASB), which is available on our website at http://www.td.com/investor/. This analysis is dated February 28, 2024. Unless otherwise indicated, all amounts

are expressed in Canadian dollars, and have been primarily derived from the Bank’s Annual or Interim Consolidated Financial Statements prepared in accordance

with IFRS. Certain comparative amounts have been revised to conform to the presentation adopted in the current period. Additional information relating to the

Bank is available on the Bank’s website at http://www.td.com, as well as on SEDAR+ at http://www.sedar.com and on the U.S. Securities and Exchange

Commission’s (SEC) website at http://www.sec.gov (EDGAR filers section).

Reported results conform to generally accepted accounting principles (GAAP), in accordance with IFRS. Adjusted results are non-GAAP financial measures.

For additional information about the Bank’s use of non-GAAP financial measures, refer to “Non-GAAP and Other Financial Measures” in the “How We Performed”

section of this document.

FIRST QUARTER FINANCIAL HIGHLIGHTS, compared with the first quarter last year:

●

Reported diluted earnings per share were $1.55, compared with $0.82.

●

Adjusted diluted earnings per share were $2.00, compared with $2.23.

●

Reported net income was $2,824 million, compared with $1,581 million.

●

Adjusted net income was $3,637 million, compared with $4,154 million.

FIRST QUARTER ADJUSTMENTS (ITEMS OF NOTE)

The first quarter reported earnings figures included the following items of note:

●

Amortization of acquired intangibles of $94 million ($79 million after-tax or 4 cents per share), compared with $54 million ($46 million after-tax or

3 cents per share) in the first quarter last year.

●

Acquisition and integration charges related to the Schwab transaction of $32 million ($26 million after-tax or 2 cents per share), compared with

$34 million ($28 million after-tax or 2 cents per share) in the first quarter last year.

●

Share of restructuring and other charges from investment in Schwab of $49 million (or 3 cents per share).

●

Restructuring charges of $291 million ($213 million after-tax or 12 cents per share).

●

Acquisition and integration charges related to the Cowen acquisition of $117 million ($93 million after-tax or 5 cents per share).

●

Impact from the terminated FHN acquisition-related capital hedging strategy of $57 million ($43 million after-tax or 2 cents per share).

●

FDIC special assessment of $411 million ($310 million after-tax or 17 cents per share).

TORONTO

, February 29, 2024 – TD Bank Group (“TD” or the “Bank”) today announced its financial results for the first quarter ended January 31, 2024. Reported

earnings were $2.8 billion, up 79% compared with the first quarter last year, and adjusted earnings were $3.6 billion, down 12%. 

“TD had a good start to the year, with revenue growth reflecting higher fee-income from our markets-driven businesses, including the contribution from TD Cowen,

and higher volumes and deposit margins in the Canadian Personal and Commercial Bank,” said Bharat Masrani, Group President and Chief Executive Officer, TD

Bank Group. “Expense growth moderated from last quarter as we made progress on our restructuring initiatives, delivering efficiencies across the Bank.”

Canadian Personal and Commercial Banking delivered a strong quarter supported by volume growth and margin expansion 

Canadian Personal and Commercial Banking net income was $1,785 million, an increase of 3% compared to the first quarter last year. The increase reflects

revenue growth, partially offset by higher non-interest expenses and provisions for credit losses (PCL). Revenue was $4,884 million, an increase of 6%, reflecting

8% growth in net interest income driven by volume growth and margin expansion. 

Canadian Personal and Commercial Banking delivered another strong quarter for New to Canada account openings and continued momentum in credit cards. TD

launched the Low Rate Visa card, further enhancing its award-winning line up of credit cards. In addition, TD Auto Finance delivered strong performance in prime

retail auto lending and accelerated acquisition of dealer relationships in its commercial business year-over-year. Small Business Banking helped over

165,000 clients conveniently repay or refinance Canada Emergency Business Account loans. 

The U.S. Retail Bank delivered loan growth and operating momentum in a challenging environment 

U.S. Retail reported net income of $907 million, a decrease of 43% (43% in U.S. dollars) compared with the first quarter last year. On an adjusted basis, net

income was $1,217 million, a decline of 27% (27% in U.S. dollars). TD Bank’s investment in The Charles Schwab Corporation (“Schwab”) contributed $194 million

in earnings, a decrease of 36% (35% in U.S. dollars) compared with the first quarter last year. 

The U.S. Retail Bank, which excludes the Bank’s investment in Schwab, reported net income of $713 million (US$526 million), a decrease of 44% (45% in U.S.

dollars) from the first quarter last year, primarily reflecting the Federal Deposit Insurance Corporation (FDIC) special assessment, lower revenue and higher PCL.

On an adjusted basis net income was $1,023 million (US$752 million), a decrease of 25% (26% in U.S. dollars) from the first quarter last year.

The U.S. Retail Bank continued to deliver loan growth while maintaining its through-the-cycle underwriting standards, with total average loan balances up 9%

compared with the first quarter last year and up 2% from last quarter. Average deposit volumes declined 9% year-over-year and 1% quarter-over-quarter.

Excluding sweep deposits, total personal and business deposit average balances were down 2% year-over-year and flat quarter-over-quarter, reflecting

competitive market conditions. 

During the quarter, TD Bank, America’s Most Convenient Bank® (TD AMCB) announced a three-year US$20 billion Community Impact Plan to support lending,

philanthropy, and banking access in diverse and underserved communities across its footprint. TD AMCB continued to deliver innovative solutions to small

business clients with the launch of Tap to Pay on iPhone and Zelle for Small Business, offering enhanced convenience and payment functionality.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

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Wealth Management and Insurance delivered good performance reflecting the strength of its diversified businesses

Wealth Management and Insurance net income was $555 million, relatively flat compared with the first quarter last year, as positive top-line momentum was

partially offset by higher insurance service expenses. This quarter’s revenue growth of 8% reflected insurance premium growth and higher fee-based revenue in

the asset management and advice-based businesses.

This quarter, Wealth Management and Insurance’s investments in client-centric innovation continued to drive momentum and gain recognition.TD Direct Investing

ranked as the #1 Direct Investing Brokerage in Canada by the Globe and Mail for the second consecutive year. Eighteen mutual funds and ETFs managed by TD

Asset Management received 2023 FundGrade A+ Awards by Fundata Canada Inc. for demonstrating strong risk-adjusted performance relative to industry peers,

underscoring the expertise of the Bank’s investment teams.

Wholesale Banking delivered record revenue 

Wholesale Banking reported net income for the quarter was $205 million, a decrease of $126 million compared with the first quarter last year, reflecting higher non-

interest expenses which include integration-related costs of $117 million and a provision of $102 million taken in connection with the industry-wide U.S. record

keeping matter, partially offset by higher revenues. On an adjusted basis, net income was $298 million, a decrease of $49 million or 14%. Revenue for the quarter

was $1,780 million, an increase of $435 million, or 32%, compared with the first quarter last year, reflecting the segment’s expanded capabilities from the inclusion

of TD Cowen and strong performance across Global Markets and Corporate and Investment Banking. 

This quarter, the Wholesale Bank continued to demonstrate its leadership in Environmental, Social, and Governance (ESG). TD Securities was joint lead manager

on a 3-year (US$1.5 billion) Social Bond for the International Finance Corporation (IFC) to support low-income communities in emerging markets. The transaction

represents IFC’s largest social bond ever issued. TD Securities was also joint lead manager on a new (AUD$1.5 billion) Green Bond issued by KFW Development

Bank, the issuer’s largest ever transaction in the Australian market. 

Continuing to innovate for customers

The Bank continued to enhance TD Invent, its enterprise approach to innovation, including reaching a milestone with over 700 patents across Canada and the

U.S. as of this quarter. For the third consecutive year, the Bank was recognized by the Business Intelligence Group’s annual BIG Innovation Awards, ranking

highest in the Organization and Product categories for the TD Accessibility Adapter, a colleague-developed browser plug-in that helps to make online experiences

more inclusive. 

Capital

TD’s Common Equity Tier 1 Capital ratio was 13.9%.

Conclusion

“Looking ahead, TD is well-positioned from both a capital and funding perspective, with the capacity to continue to invest in our business and return capital to

shareholders,” said Masrani. “I want to thank our more than 95,000 TD bankers who continue to deliver for our customers, communities, and shareholders.”

The foregoing contains forward-looking statements. Please refer to the “Caution Regarding Forward-Looking Statements” on page 3. 

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

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Caution Regarding Forward-Looking Statements

From time to time, the Bank (as defined in this document) makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the

United States (U.S.) Securities and Exchange Commission (SEC), and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to

analysts, investors, the media, and others. All such statements are made pursuant to the “safe harbour” provisions of, and are intended to be forward-looking statements under, applicable

Canadian and U.S. securities legislation, including the

U.S. Private Securities Litigation Reform Act of 1995

. Forward-looking statements include, but are not limited to, statements made in

this document, the Management’s Discussion and Analysis (“2023 MD&A”) in the Bank’s 2023 Annual Report under the heading “Economic Summary and Outlook”, under the headings

“Key Priorities for 2024” and “Operating Environment and Outlook” for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale

Banking segments, and under the heading “2023 Accomplishments and Focus for 2024” for the Corporate segment, and in other statements regarding the Bank’s objectives and priorities

for 2024 and beyond and strategies to achieve them, the regulatory environment in which the Bank operates, and the Bank’s anticipated financial performance. Forward-looking statements

can be identified by words such as “anticipate”, “believe”, “could”, “estimate”, “expect”, “forecast”, “goal”, “intend”, “may”, “outlook”, “plan”, “possible”, “potential”, “predict”, “project”, “should”,

“target”, “will”, and “would” and similar expressions or variations thereof, or the negative thereof, but these terms are not the exclusive means of identifying such statements.

By their very nature, these forward-looking statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of

the uncertainty related to the physical, financial, economic, political, and regulatory environments, such risks and uncertainties – many of which are beyond the Bank’s control and the

effects of which can be difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause,

individually or in the aggregate, such differences include: strategic, credit, market (including equity, commodity, foreign exchange, interest rate, and credit spreads), operational (including

technology, cyber security, and infrastructure), model, insurance, liquidity, capital adequacy, legal, regulatory compliance and conduct, reputational, environmental and social, and other

risks. Examples of such risk factors include general business and economic conditions in the regions in which the Bank operat es; geopolitical risk; inflation, rising rates and recession;

regulatory oversight and compliance risk; the ability of the Bank to execute on long-term strategies, shorter-term key strategic priorities, including the successful completion of acquisitions

and dispositions and integration of acquisitions, the ability of the Bank to achieve its financial or strategic objectives with respect to its investments, business retention plans, and other

strategic plans; technology and cyber security risk (including cyber-attacks, data security breaches or technology failures) on the Bank’s technologies, systems and networks, those of the

Bank’s customers (including their own devices), and third parties providing services to the Bank; model risk; fraud activity; insider risk; the failure of third parties to comply with their

obligations to the Bank or its affiliates, including relating to the care and control of information, and other risks arising from the Bank’s use of third parties; the impact of new and changes to,

or application of, current laws, rules and regulations, including without limitation tax laws, capital guidelines and liquidity regulatory guidance; increased competition from incumbents and

new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and disruptive technology; environmental and social risk (including climate change);

exposure related to significant litigation and regulatory matters; ability of the Bank to attract, develop, and retain key talent; changes to the Bank’s credit ratings; changes in foreign

exchange rates, interest rates, credit spreads and equity prices; the interconnectivity of Financial Institutions including existing and potential international debt crises; increased funding

costs and market volatility due to market illiquidity and competition for funding; Interbank Offered Rate (IBOR) transition risk; critical accounting estimates and changes to accounting

standards, policies, and methods used by the Bank; the economic, financial, and other impacts of pandemics; and the occurrence of natural and unnatural catastrophic events and claims

resulting from such events. The Bank cautions that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank’s results. For more

detailed information, please refer to the “Risk Factors and Management” section of the 2023 MD&A, as may be updated in subsequently filed quarterly reports to shareholders and news

releases (as applicable) related to any events or transactions discussed under the heading “Significant Events” in the relevant MD&A, which applicable releases may be found on

www.td.com. All such factors, as well as other uncertainties and potential events, and the inherent uncertainty of forward-looking statements, should be considered carefully when making

decisions with respect to the Bank. The Bank cautions readers not to place undue reliance on the Bank’s forward-looking statements.

Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2023 MD&A under the heading “Economic Summary and Outlook”,

under the headings “Key Priorities for 2024” and “Operating Environment and Outlook” for the Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and

Insurance, and Wholesale Banking segments, and under the heading “2023 Accomplishments and Focus for 2024” for the Corporate segment, each as may be updated in subsequently

filed quarterly reports to shareholders.

Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the Bank’s

shareholders and analysts in understanding the Bank’s financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the dates

presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to

time by or on its behalf, except as required under applicable law.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

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TABLE 1: FINANCIAL HIGHLIGHTS

(millions of Canadian dollars, except as noted)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Results of operations

Total revenue – reported

1

$

13,714

$

13,178

$

12,201

Total revenue – adjusted

1,2

13,771

13,242

13,077

Provision for (recovery of) credit losses

1,001

878

690

Insurance service expenses (ISE)

1

1,366

1,346

1,164

Non-interest expenses – reported

1

8,030

7,628

8,112

Non-interest expenses – adjusted

1,2

7,125

6,988

6,337

Net income – reported

1

2,824

2,866

1,581

Net income – adjusted

1,2

3,637

3,485

4,154

Financial position

(billions of Canadian dollars)

Total loans net of allowance for loan losses

$

904.3

$

895.9

$

836.7

Total assets

1,910.9

1,955.1

1,926.6

Total deposits

1,181.3

1,198.2

1,220.6

Total equity

112.4

112.1

112.0

Total risk-weighted assets

3

579.4

571.2

531.6

Financial ratios

Return on common equity (ROE) – reported

1,4

10.9

%

10.5

%

5.9

%

Return on common equity – adjusted

1,2

14.1

12.9

16.1

Return on tangible common equity (ROTCE)

1,2,4

14.9

14.3

8.0

Return on tangible common equity – adjusted

1,2

18.7

17.1

21.1

Efficiency ratio – reported

1,4

58.6

57.9

66.5

Efficiency ratio – adjusted, net of ISE

1,2,4,5

57.4

58.7

53.2

Provision for (recovery of) credit losses as a % of net 

average loans and acceptances

0.44

0.39

0.32

Common share information – reported

(Canadian dollars)

Per share earnings

1

Basic

$

1.55

$

1.48

$

0.82

Diluted

1.55

1.48

0.82

Dividends per share

1.02

0.96

0.96

Book value per share

4

57.34

56.56

55.07

Closing share price

6

81.67

77.46

92.06

Shares outstanding (millions)

Average basic

1,776.7

1,806.3

1,820.7

Average diluted

1,778.2

1,807.8

1,823.1

End of period

1,772.1

1,790.7

1,828.9

Market capitalization (billions of Canadian dollars)

$

144.7

$

138.7

$

168.4

Dividend yield

4

4.9

%

4.7

%

4.3

%

Dividend payout ratio

4

65.7

64.6

116.6

Price-earnings ratio

1,4

13.1

14.0

11.1

Total shareholder return (1 year)

4

(6.9)

(6.9)

(5.7)

Common share information – adjusted

(Canadian dollars)

1,2

Per share earnings

1

Basic

$

2.01

$

1.82

$

2.24

Diluted

2.00

1.82

2.23

Dividend payout ratio

50.7

%

52.4

%

42.9

%

Price-earnings ratio

1

10.6

9.8

10.8

Capital ratios

3

Common Equity Tier 1 Capital ratio

13.9

%

14.4

%

15.5

%

Tier 1 Capital ratio

15.7

16.2

17.5

Total Capital ratio

17.6

18.1

19.9

Leverage ratio

4.4

4.4

4.8

TLAC ratio

30.8

32.7

36.6

TLAC Leverage ratio

8.6

8.9

9.9

1

For the three months ended October 31, 2023 and January 31, 2023, certain amounts have been restated for the adoption of IFRS 17,

Insurance Contracts

 (IFRS 17). Refer to Note 2 of

the Bank’s first quarter 2024 Interim Consolidated Financial Statements for further details.

2

The Toronto-Dominion Bank (“TD” or the “Bank”) prepares its Interim Consolidated Financial Statements in accordance with IFRS, the current GAAP, and refers to results prepared in

accordance with IFRS as the “reported” results. The Bank also utilizes non-GAAP financial measures such as “adjusted” results and non-GAAP ratios to assess each of its businesses

and to measure overall Bank performance. To arrive at adjusted results, the Bank adjusts reported results for “items of note”. Refer to the “How We Performed” section of this document

for further explanation, a list of the items of note, and a reconciliation of adjusted to reported results. Non-GAAP financial measures and ratios used in this document are not defined terms

under IFRS and, therefore, may not be comparable to similar terms used by other issuers.

3

These measures have been included in this document in accordance with the Office of the Superintendent of Financial Institutions Canada’s (OSFI’s) Capital Adequacy Requirements,

Leverage Requirements, and Total Loss Absorbing Capacity (TLAC) guidelines. Refer to the “Capital Position” section in the first quarter of 2024 MD&A for further details. 

4

 For additional information about this metric, refer to the Glossary in the first quarter of 2024 MD&A, which is incorporated by reference.

5

 Efficiency ratio – adjusted, net of ISE is calculated by dividing adjusted non-interest expenses by adjusted total revenue, net of ISE. Adjusted total revenue, net of ISE – Q1 2024:

$12,405 million, Q4 2023: $11,896 million, Q1 2023: $11,913 million. Effective the first quarter of 2024, the composition of this non-GAAP ratio and the comparative amounts have been

revised.

6

Toronto Stock Exchange closing market price.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

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SIGNIFICANT EVENTS

a)

Restructuring Charges

The Bank continued to undertake certain measures in the first quarter of 2024 to reduce its cost base and achieve greater efficiency. In connection with these

measures, the Bank incurred $291 million of restructuring charges which primarily relate to employee severance and other personnel-related costs and real estate

optimization. The Bank continues to expect to incur restructuring charges in the first half of calendar 2024 that are of a similar magnitude to the restructuring

charges incurred in the fourth quarter of 2023.

b)

Federal Deposit Insurance Corporation Special Assessment

On November 16, 2023, the FDIC announced a final rule that implements a special assessment to recover the losses to the Deposit Insurance Fund arising from

the protection of uninsured depositors during the U.S. bank failures in the spring of 2023. The FDIC special assessment resulted in the recognition of $411 million

(US$300 million) pre-tax in non-interest expenses in the first quarter of the Bank’s fiscal 2024. On February 23, 2024, the FDIC notified all institutions subject to

the special assessment that its estimate of total losses has increased compared to the amount communicated with the final rule in November 2023. The FDIC

plans to provide institutions subject to the special assessment an updated estimate with its first quarter 2024 special assessment invoice, to be released in June

2024. At this time, it is not known what the final FDIC special assessment will be, but the Bank expects the FDIC special assessment to increase.

HOW WE PERFORMED

HOW THE BANK REPORTS

The Bank prepares its Interim Consolidated Financial Statements in accordance with IFRS and refers to results prepared in accordance with IFRS as “reported”

results. 

Non-GAAP and Other Financial Measures

In addition to reported results, the Bank also presents certain financial measures, including non-GAAP financial measures that are historical, non-GAAP ratios,

supplementary financial measures and capital management measures, to assess its results. Non-GAAP financial measures, such as “adjusted” results, are utilized

to assess the Bank’s businesses and to measure the Bank’s overall performance. To arrive at adjusted results, the Bank adjusts for “items of note” from reported

results. Items of note are items which management does not believe are indicative of underlying business performance and are disclosed in Table 3. Non-GAAP

ratios include a non-GAAP financial measure as one or more of its components. Examples of non-GAAP ratios include adjusted basic and diluted earnings per

share (EPS), adjusted dividend payout ratio, adjusted efficiency ratio, net of ISE, and adjusted effective income tax rate. The Bank believes that non-GAAP

financial measures and non-GAAP ratios provide the reader with a better understanding of how management views the Bank’s performance. Non-GAAP financial

measures and non-GAAP ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other

issuers. Supplementary financial measures depict the Bank’s financial performance and position, and capital management measures depict the Bank’s capital

position, and both are explained in this document where they first appear.

U.S. Strategic Cards

The Bank’s U.S. strategic cards portfolio is comprised of agreements with certain U.S. retailers pursuant to which TD is the U.S. issuer of private label and co-

branded consumer credit cards to their U.S. customers. Under the terms of the individual agreements, the Bank and the retailers share in the profits generated by

the relevant portfolios after credit losses. Under IFRS, TD is required to present the gross amount of revenue and PCL related to these portfolios in the Bank’s

Interim Consolidated Statement of Income. At the segment level, the retailer program partners’ share of revenues and credit losses is presented in the Corporate

segment, with an offsetting amount (representing the partners’ net share) recorded in Non-interest expenses, resulting in no impact to Corporate’s reported net

income (loss). The net income (loss) included in the U.S. Retail segment includes only the portion of revenue and credit losses attributable to TD under the

agreements.

Investment in The Charles Schwab Corporation and IDA Agreement

On October 6, 2020, the Bank acquired an approximately 13.5% stake in The Charles Schwab Corporation (“Schwab”) following the completion of Schwab’s

acquisition of TD Ameritrade Holding Corporation (“TD Ameritrade”) of which the Bank was a major shareholder (the “Schwab transaction”). On August 1, 2022,

the Bank sold 28.4 million non-voting common shares of Schwab, at a price of US$66.53 per share for proceeds of $2.5 billion (US$1.9 billion), which reduced the

Bank’s ownership interest in Schwab to approximately 12.0%.

The Bank accounts for its investment in Schwab using the equity method. The U.S. Retail segment reflects the Bank’s share of net income from its investment

in Schwab. The Corporate segment net income (loss) includes amounts for amortization of acquired intangibles, the acquisition and integration charges related to

the Schwab transaction, and the Bank’s share of restructuring and other charges incurred by Schwab. The Bank’s share of Schwab’s earnings available to

common shareholders is reported with a one-month lag. For further details, refer to Note 7 of the Bank’s first quarter 2024 Interim Consolidated Financial

Statements.

On November 25, 2019, the Bank and Schwab signed an insured deposit account agreement (the “2019 Schwab IDA Agreement”), with an initial expiration

date of July 1, 2031. Under the 2019 Schwab IDA Agreement, starting July 1, 2021, Schwab had the option to reduce the deposits by up to US$10 billion per year

(subject to certain limitations and adjustments), with a floor of US$50 billion. In addition, Schwab requested some further operational flexibility to allow for the

sweep deposit balances to fluctuate over time, under certain conditions and subject to certain limitations.

On May 4, 2023, the Bank and Schwab entered into an amended insured deposit account agreement (the “2023 Schwab IDA Agreement”), which replaced the

2019 Schwab IDA Agreement. Pursuant to the 2023 Schwab IDA Agreement, the Bank continues to make sweep deposit accounts available to clients of Schwab.

Schwab designates a portion of the deposits with the Bank as fixed-rate obligation amounts (FROA). Remaining deposits over the minimum level of FROA are

designated as floating-rate obligations. In comparison to the 2019 Schwab IDA Agreement, the 2023 Schwab IDA Agreement extends the initial expiration date by

three years to July 1, 2034 and provides for lower deposit balances in its first six years, followed by higher balances in the later years. Specifically, until

September 2025, the aggregate FROA will serve as the floor. Thereafter, the floor will be set at US$60 billion. In addition, Schwab has the option to buy down up

to $6.8 billion (US$5 billion) of FROA by paying the Bank certain fees in accordance with the 2023 Schwab IDA Agreement, subject to certain limits. Refer to the

“Related Party Transactions” section in the 2023 MD&A for further details.

During the first quarter of 2024, Schwab exercised its option to buy down the remaining $0.7 billion (US$0.5 billion) of the US$5 billion FROA buydown

allowance and paid $32 million (US$23 million) in termination fees to the Bank in accordance with the 2023 Schwab IDA Agreement. The fees are intended to

compensate the Bank for losses incurred this quarter from discontinuing certain hedging relationships, and for lost revenues. The net impact is recorded in net

interest income. 

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 6

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

TABLE 2: OPERATING RESULTS – Reported

(millions of Canadian dollars)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Net interest income

$

7,488

$

7,494

$

7,733

Non-interest income

1

6,226

5,684

4,468

Total revenue

1

13,714

13,178

12,201

Provision for (recovery of) credit losses

1,001

878

690

Insurance service expenses

1

1,366

1,346

1,164

Non-interest expenses

1

8,030

7,628

8,112

Income before income taxes and share of net income from

investment in Schwab

1

3,317

3,326

2,235

Provision for (recovery of) income taxes

1

634

616

939

Share of net income from investment in Schwab

141

156

285

Net income – reported

1

2,824

2,866

1,581

Preferred dividends and distributions on other equity instruments

74

196

83

Net income available to common shareholders

1

$

2,750

$

2,670

$

1,498

1

 For the three months ended October 31, 2023 and January 31, 2023, certain amounts have been restated for the adoption of IFRS 17. Refer to Note 2 of the Bank’s first quarter 2024

Interim Consolidated Financial Statements for further details.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 7

The following table provides a reconciliation between the Bank’s adjusted and reported results. For further details refer to the “Significant Events” section.

TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income

(millions of Canadian dollars)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Operating results – adjusted

Net interest income

1

$

7,545

$

7,558

$

7,862

Non-interest income

1,2

6,226

5,684

5,215

Total revenue

2

13,771

13,242

13,077

Provision for (recovery of) credit losses

1,001

878

690

Insurance service expenses

2

1,366

1,346

1,164

Non-interest expenses

2,3

7,125

6,988

6,337

Income before income taxes and share of net income from investment in Schwab

4,279

4,030

4,886

Provision for income taxes

872

779

1,060

Share of net income from investment in Schwab

4

230

234

328

Net income – adjusted

2

3,637

3,485

4,154

Preferred dividends and distributions on other equity instruments

74

196

83

Net income available to common shareholders – adjusted

3,563

3,289

4,071

Pre-tax adjustments for items of note

Amortization of acquired intangibles

5

(94)

(92)

(54)

Acquisition and integration charges related to the Schwab transaction

3,4

(32)

(31)

(34)

Share of restructuring and other charges from investment in Schwab

4

(49)

(35)

–

Restructuring charges

3

(291)

(363)

–

Acquisition and integration-related charges

3

(117)

(197)

(21)

Charges related to the terminated First Horizon (FHN) acquisition

3

–

–

(106)

Impact from the terminated FHN acquisition-related capital hedging strategy

1

(57)

(64)

(876)

Litigation (settlement)/recovery

3

–

–

(1,603)

FDIC special assessment

3

(411)

–

–

Less: Impact of income taxes

Amortization of acquired intangibles

(15)

(9)

(8)

Acquisition and integration charges related to the Schwab transaction

(6)

(5)

(6)

Restructuring charges

(78)

(97)

–

Acquisition and integration-related charges

(24)

(36)

(5)

Charges related to the terminated FHN acquisition

–

–

(26)

Impact from the terminated FHN acquisition-related capital hedging strategy

(14)

(16)

(216)

Litigation (settlement)/recovery

–

–

(445)

FDIC special assessment

(101)

–

–

Canada Recovery Dividend (CRD) and federal tax rate increase for fiscal 2022

6

–

–

585

Total adjustments for items of note

(813)

(619)

(2,573)

Net income available to common shareholders – reported

$

2,750

$

2,670

$

1,498

1

 Prior to May 4, 2023, the impact shown covers periods before the termination of the FHN transaction and includes the following components, reported in the Corporate segment: i) mark-

to-market gains (losses) on interest rate swaps recorded in non-interest income – Q1 2023: ($998) million, ii) basis adjustment amortization related to de-designated fair value hedge

accounting relationships, recorded in net interest income – Q1 2023: $122 million, and iii) interest income (expense) recognized on the interest rate swaps, reclassified from non-interest

income to net interest income with no impact to total adjusted net income – Q1 2023: $251 million. After the termination of the merger agreement, the residual impact of the strategy is

reversed through net interest income – Q1 2024: ($57) million, Q4 2023: ($64) million.

2

 For the three months ended October 31, 2023 and January 31, 2023, certain amounts have been restated for the adoption of IFRS 17. Refer to Note 2 of the Bank’s first quarter 2024

Interim Consolidated Financial Statements for further details.

3

 Adjusted non-interest expenses exclude the following items of note:

i. Amortization of acquired intangibles – Q1 2024: $63 million, Q4 2023: $62 million, Q1 2023: $24 million, reported in the Corporate segment;

ii. The Bank’s own integration and acquisition costs related to the Schwab transaction – Q1 2024: $23 million, Q4 2023: $18 million, Q1 2023: $21 million, reported in the Corporate

segment;

iii. Acquisition and integration-related charges – Q1 2024: $117 million, Q4 2023: $197 million, Q1 2023: $21 million, reported in the Wholesale Banking segment; 

iv. Charges related to the terminated FHN acquisition – Q1 2023: $106 million, reported in the U.S. Retail segment;

v. Stanford litigation settlement – Q1 2023: $1,603 million, reported in the Corporate segment;

vi. Restructuring charges – Q1 2024: $291 million, Q4 2023: $363 million, reported in the Corporate segment; and 

vii. FDIC special assessment – Q1 2024: $411 million, reported in the U.S. Retail segment.

4

 Adjusted share of net income from investment in Schwab excludes the following items of note on an after-tax basis. The earnings impact of these items is reported in the Corporate

segment:

i. Amortization of Schwab-related acquired intangibles – Q1 2024: $31 million, Q4 2023: $30 million, Q1 2023: $30 million;

ii. The Bank’s share of acquisition and integration charges associated with Schwab’s acquisition of TD Ameritrade – Q1 2024: $9 million, Q4 2023: $13 million, Q1 2023: $13 million;

iii. The Bank’s share of restructuring charges incurred by Schwab – Q1 2024: $27 million, Q4 2023: $35 million; and

iv. The Bank’s share of the FDIC special assessment charge incurred by Schwab – Q1 2024: $22 million.

5

Amortization of acquired intangibles relates to intangibles acquired as a result of asset acquisitions and business combinations, including the after-tax amounts for amortization of

acquired intangibles relating to the Share of net income from investment in Schwab, reported in the Corporate segment. Refer to footnotes 3 and 4 for amounts.

6

 CRD and impact from increase in the Canadian federal tax rate for fiscal 2022 recognized in the first quarter of 2023, reported in the Corporate segment.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 8

TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE

1

(Canadian dollars)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Basic earnings per share – reported

2

$

1.55

$

1.48

$

0.82

Adjustments for items of note

0.45

0.34

1.41

Basic earnings per share – adjusted

2

$

2.01

$

1.82

$

2.24

Diluted earnings per share – reported

2

$

1.55

$

1.48

$

0.82

Adjustments for items of note

0.45

0.34

1.41

Diluted earnings per share – adjusted

2

$

2.00

$

1.82

$

2.23

1

 EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding during the period. Numbers may not add due to

rounding.

2

 For the three months ended October 31, 2023 and January 31, 2023, certain amounts have been restated for the adoption of IFRS 17. Refer to Note 2 of the Bank’s first quarter 2024

Interim Consolidated Financial Statements for further details.

Return on Common Equity

The consolidated Bank ROE is calculated as reported net income available to common shareholders as a percentage of average common equity. The

consolidated Bank adjusted ROE is calculated as adjusted net income available to common shareholders as a percentage of average common equity. Adjusted

ROE is a non-GAAP financial ratio and can be utilized in assessing the Bank’s use of equity.

ROE for the business segments is calculated as the segment net income attributable to common shareholders as a percentage of average allocated capital. The

Bank’s methodology for allocating capital to its business segments is largely aligned with the common equity capital requirements under Basel III. Capital allocated

to the business segments was increased to 11.5% Common Equity Tier 1 (CET1) Capital effective the first quarter of 2024, compared with 11% in fiscal 2023.

TABLE 5: RETURN ON COMMON EQUITY

(millions of Canadian dollars, except as noted)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Average common equity

$

100,269

$

100,998

$

100,441

Net income available to common shareholders – reported

1

2,750

2,670

1,498

Items of note, net of income taxes

813

619

2,573

Net income available to common shareholders – adjusted

1

$

3,563

$

3,289

$

4,071

Return on common equity – reported

1

10.9

%

10.5

%

5.9

%

Return on common equity – adjusted

1

14.1

12.9

16.1

1

 For the three months ended October 31, 2023 and January 31, 2023, certain amounts have been restated for the adoption of IFRS 17. Refer to Note 2 of the Bank’s first quarter 2024

Interim Consolidated Financial Statements for further details.

Return on Tangible Common Equity 

Tangible common equity (TCE) is calculated as common shareholders’ equity less goodwill, imputed goodwill and intangibles on the investments in Schwab and

other acquired intangible assets, net of related deferred tax liabilities. ROTCE is calculated as reported net income available to common shareholders after

adjusting for the after-tax amortization of acquired intangibles, which are treated as an item of note, as a percentage of average TCE. Adjusted ROTCE is

calculated using reported net income available to common shareholders, adjusted for all items of note, as a percentage of average TCE. TCE, ROTCE, and

adjusted ROTCE can be utilized in assessing the Bank’s use of equity. TCE is a non-GAAP financial measure, and ROTCE and adjusted ROTCE are non-GAAP

ratios. 

TABLE 6: RETURN ON TANGIBLE COMMON EQUITY

(millions of Canadian dollars, except as noted)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Average common equity

$

100,269

$

100,998

$

100,441

Average goodwill

18,208

18,217

17,486

Average imputed goodwill and intangibles on investments in Schwab

6,056

6,094

6,160

Average other acquired intangibles

1

615

635

442

Average related deferred tax liabilities

(231)

(114)

(174)

Average tangible common equity

75,621

76,166

76,527

Net income available to common shareholders – reported

2

2,750

2,670

1,498

Amortization of acquired intangibles, net of income taxes

79

83

46

Net income available to common shareholders adjusted for

amortization of acquired intangibles, net of income taxes

2

2,829

2,753

1,544

Other items of note, net of income taxes

734

536

2,527

Net income available to common shareholders – adjusted

2

$

3,563

$

3,289

$

4,071

Return on tangible common equity

2

14.9

%

14.3

%

8.0

%

Return on tangible common equity – adjusted

2

18.7

17.1

21.1

1

 Excludes intangibles relating to software and asset servicing rights.

2

 For the three months ended October 31, 2023 and January 31, 2023, certain amounts have been restated for the adoption of IFRS 17. Refer to Note 2 of the Bank’s first quarter 2024

Interim Consolidated Financial Statements for further details.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 9

HOW OUR BUSINESSES PERFORMED

For management reporting purposes, the Bank’s business operations and activities are organized around the following four key business segments: Canadian

Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. The Bank’s other activities are grouped into the

Corporate segment.

Results of each business segment reflect revenue, expenses, assets, and liabilities generated by the businesses in that segment. Where applicable, the Bank

measures and evaluates the performance of each segment based on adjusted results and ROE, and for those segments, the Bank indicates that the measure is

adjusted. For further details, refer to the “How We Performed” section of this document, the “Business Focus” section in the Bank’s 2023 MD&A, and Note 28 of

the Bank’s Consolidated Financial Statements for the year ended October 31, 2023. Effective the first quarter of 2024, certain asset management businesses

which were previously reported in the U.S. Retail segment are now reported in the Wealth Management and Insurance segment. Comparative period information

has been adjusted to reflect the new alignment. 

PCL related to performing (Stage 1 and Stage 2) and impaired (Stage 3) financial assets, loan commitments, and financial guarantees is recorded within the

respective segment. 

Net interest income within Wholesale Banking is calculated on a taxable equivalent basis (TEB), which means that the value of non-taxable or tax-exempt

income, including certain dividends, is adjusted to its equivalent pre-tax value. Using TEB allows the Bank to measure income from all securities and loans

consistently and makes for a more meaningful comparison of net interest income with similar institutions. The TEB increase to net interest income and provision for

income taxes reflected in Wholesale Banking results is reversed in the Corporate segment. The TEB adjustment for the quarter was $29 million, compared with

$44 million in the prior quarter and $57 million in the first quarter last year.

Share of net income from investment in Schwab is reported in the U.S. Retail segment. Amounts for amortization of acquired intangibles, the acquisition and

integration charges related to the Schwab transaction, and the Bank’s share of restructuring and other charges incurred by Schwab are recorded in the Corporate

segment.

TABLE 7: CANADIAN PERSONAL AND COMMERCIAL BANKING

(millions of Canadian dollars, except as noted)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Net interest income

$

3,833

$

3,705

$

3,539

Non-interest income

1,051

1,049

1,050

Total revenue

4,884

4,754

4,589

Provision for (recovery of) credit losses – impaired

364

274

220

Provision for (recovery of) credit losses – performing

59

116

107

Total provision for (recovery of) credit losses

423

390

327

Non-interest expenses

1,984

2,039

1,863

Provision for (recovery of) income taxes

692

646

670

Net income

$

1,785

$

1,679

$

1,729

Selected volumes and ratios

Return on common equity

1

34.6

%

35.1

%

39.9

%

Net interest margin (including on securitized assets)

2

2.84

2.78

2.80

Efficiency ratio

40.6

42.9

40.6

Number of Canadian retail branches

1,062

1,062

1,060

Average number of full-time equivalent staff

29,271

29,069

28,803

1

 Capital allocated to the business segment was increased to 11.5% CET1 Capital effective the first quarter of 2024 compared with 11% in the prior year.

2

 Net interest margin is calculated by dividing net interest income by average interest-earning assets. Average interest-earning assets used in the calculation of net interest margin is a non-

GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section of this document and the Glossary in the Bank’s first quarter 2024

MD&A for additional information about these metrics. 

Quarterly comparison – Q1 2024 vs. Q1 2023

Canadian Personal and Commercial Banking net income for the quarter was $1,785 million, an increase of $56 million, or 3%, compared with the first quarter last

year, reflecting higher revenue, partially offset by higher non-interest expenses and PCL. The annualized ROE for the quarter was 34.6%, compared with 39.9% in

the first quarter last year.

Revenue for the quarter was $4,884 million, an increase of $295 million, or 6%, compared with the first quarter last year.

Net interest income was $3,833 million, an increase of $294 million, or 8%, compared with the first quarter last year, primarily reflecting volume growth. Average

loan volumes increased $36 billion, or 7%, reflecting 7% growth in personal loans and 8% growth in business loans. Average deposit volumes increased

$14 billion, or 3%, reflecting 6% growth in personal deposits, partially offset by 2% decline in business deposits. Net interest margin was 2.84%, an increase of

4 basis points (bps), primarily due to higher margins on deposits, partially offset by lower margins on loans.

Non-interest income was $1,051 million, relatively flat compared with the first quarter last year.

PCL for the quarter was $423 million, an increase of $96 million, compared with the first quarter last year. PCL – impaired for the quarter was $364 million, an

increase of $144 million, or 65%, reflecting further normalization of credit performance in the consumer lending portfolios, and credit migration in the commercial

lending portfolios. PCL – performing was $59 million, a decrease of $48 million, reflecting a lower build in the current quarter. The performing provisions this

quarter largely reflect credit conditions, including some continued normalization of credit performance in the consumer lending portfolios, credit migration in the

commercial lending portfolios, and volume growth. Total PCL as an annualized percentage of credit volume was 0.30%, an increase of 5 bps compared with the

first quarter last year. 

Non-interest expenses for the quarter were $1,984 million, an increase of $121 million, or 6%, compared with the first quarter last year, reflecting higher spend

supporting business growth including employee-related expenses and technology costs.

The efficiency ratio for the quarter was 40.6%, flat compared with the first quarter last year.

Quarterly comparison – Q1 2024 vs. Q4 2023

Canadian Personal and Commercial Banking net income for the quarter was $1,785 million, an increase of $106 million, or 6%, compared with the prior quarter,

reflecting higher revenue and lower non-interest expenses, partially offset by higher PCL. The annualized ROE for the quarter was 34.6%, compared with 35.1%,

in the prior quarter.

Revenue increased $130 million, or 3%, compared with the prior quarter. Net interest income increased $128 million, or 3%, reflecting volume growth and

higher margins. Average loan volumes increased $7 billion, or 1%, reflecting 1% growth in personal loans and 2% growth in business loans. Average deposit

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 10

volumes increased $8 billion, or 2%, reflecting 3% growth in personal deposits, partially offset by 1% decline in business deposits. Net interest margin was 2.84%,

an increase of 6 bps, primarily due to higher deposit margins.

Non-interest income increased $2 million, relatively flat compared with the prior quarter.

PCL for the quarter was $423 million, an increase of $33 million compared with the prior quarter. PCL – impaired was $364 million, an increase of $90 million, or

33%, reflecting further normalization of credit performance in the consumer lending portfolios, and credit migration in the commercial lending portfolios. PCL –

performing was $59 million, a decrease of $57 million, reflecting a lower build in the current quarter. The performing provisions this quarter largely reflect credit

conditions including some continued normalization of credit performance in the consumer lending portfolios, credit migration in the commercial lending portfolios,

and volume growth. Total PCL as an annualized percentage of credit volume was 0.30%, an increase of 2 bps compared with the prior quarter.

Non-interest expenses decreased $55 million, or 3% compared with the prior quarter, primarily reflecting higher non-credit provisions in the prior quarter and

lower operating expenses within our support functions, partially offset by higher employee-related expenses in Branch Banking

.

The efficiency ratio was 40.6%, compared with 42.9%, in the prior quarter.

TABLE 8: U.S. RETAIL

(millions of dollars, except as noted)

For the three months ended

January 31

October 31

January 31

Canadian Dollars

2024

2023

2023

Net interest income

$

 2,899

$

 2,951

$

 3,167

Non-interest income

 604

 572

 560

Total revenue

 3,503

 3,523

 3,727

Provision for (recovery of) credit losses – impaired

 377

 308

 212

Provision for (recovery of) credit losses – performing

 8

(19)

(12)

Total provision for (recovery of) credit losses 

 385

 289

 200

Non-interest expenses – reported

 2,410

 2,045

 2,040

Non-interest expenses – adjusted

1,2

 1,999

 2,045

 1,934

Provision for (recovery of) income taxes – reported

(5)

 117

 204

Provision for (recovery of) income taxes – adjusted

1

 96

 117

 230

U.S. Retail Bank net income – reported

 713

 1,072

 1,283

U.S. Retail Bank net income – adjusted

1

 1,023

 1,072

 1,363

Share of net income from investment in Schwab

3,4

 194

 197

 301

Net income – reported

$

 907

$

 1,269

$

 1,584

Net income – adjusted

1

 1,217

 1,269

 1,664

U.S. Dollars

Net interest income

$

 2,141

$

 2,175

$

 2,348

Non-interest income

 446

 421

 415

Total revenue

 2,587

 2,596

 2,763

Provision for (recovery of) credit losses – impaired

 279

 227

 158

Provision for (recovery of) credit losses – performing

 6

(14)

(9)

Total provision for (recovery of) credit losses 

 285

 213

 149

Non-interest expenses – reported

 1,779

 1,505

 1,512

Non-interest expenses – adjusted

1,2

 1,479

 1,505

 1,434

Provision for (recovery of) income taxes – reported

(3)

 87

 151

Provision for (recovery of) income taxes – adjusted

1

 71

 87

 170

U.S. Retail Bank net income – reported

 526

 791

 951

U.S. Retail Bank net income – adjusted

1

 752

 791

 1,010

Share of net income from investment in Schwab

3,4

 144

 146

 222

Net income – reported

$

 670

$

 937

$

 1,173

Net income – adjusted

1

 896

 937

 1,232

Selected volumes and ratios

Return on common equity – reported

5

 8.5

%

 12.2

%

 15.5

%

Return on common equity – adjusted

1,5

 11.3

 12.2

 16.3

Net interest margin

1,6

 3.03

 3.07

 3.29

Efficiency ratio – reported

 68.8

 58.0

 54.7

Efficiency ratio – adjusted

1

 57.2

 58.0

 51.9

Assets under administration (billions of U.S. dollars)

7

$

 40

$

 40

$

 38

Assets under management (billions of U.S. dollars)

7,8

 7

 7

 7

Number of U.S. retail stores

 1,176

 1,177

 1,161

Average number of full-time equivalent staff

 27,985

 28,182

 27,587

1

 For additional information about the Bank’s use of non-GAAP financial measures, refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section of this

document.

2

 Adjusted non-interest expenses exclude the following items of note:

i. Charges related to the terminated First Horizon acquisition – Q1 2023: $106 million or US$78 million ($80 million or US$59 million after-tax); and

ii. FDIC special assessment – Q1 2024: $411 million or US$300 million ($310 million or US$226 million after-tax).

3

The Bank’s share of Schwab’s earnings is reported with a one-month lag. Refer to Note 7 of the Bank’s first quarter 2024 Interim Consolidated Financial Statements for further details.

4

The after-tax amounts for amortization of acquired intangibles, the Bank’s share of acquisition and integration charges associated with Schwab’s acquisition of TD Ameritrade, the Bank’s

share of Schwab’s restructuring charges, and the Bank’s share of Schwab’s FDIC special assessment charge are recorded in the Corporate segment. 

5

Capital allocated to the business segment was increased to 11.5% CET1 Capital effective the first quarter of 2024, compared with 11% in the prior year.

6

Net interest margin is calculated by dividing U.S. Retail segment’s net interest income by average interest -earning assets. For the U.S. Retail segment, this calculation excludes the

impact related to sweep deposits arrangements, intercompany deposits, and cash collateral. The value of tax-exempt interest income is adjusted to its equivalent before-tax value. For

investment securities, the adjustment to fair value is included in the calculation of average interest-earning assets. Management believes this calculation better reflects segment

performance. Net interest income and average interest-earning assets used in the calculation are non-GAAP financial measures. 

7

For additional information about this metric, refer to the Glossary in the Bank’s first quarter 2024 MD&A.

8

Refer to “How Our Businesses Performed” section regarding alignment of certain asset management businesses from the U.S. Retail segment to the Wealth Management and Insurance

segment.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 11

Quarterly comparison – Q1 2024 vs. Q1 2023

U.S. Retail reported net income for the quarter was $907 million (US$670 million), a decrease of $677 million (US$503 million), or 43% (43% in U.S. dollars),

compared with the first quarter last year. On an adjusted basis, net income for the quarter was $1,217 million (US$896 million), a decrease of $447 million

(US$336 million), or 27% (27% in U.S. dollars). The reported and adjusted annualized ROE for the quarter were 8.5% and 11.3%, respectively, compared with

15.5% and 16.3%, respectively, in the first quarter last year.

U.S. Retail net income includes contributions from the U.S. Retail Bank and the Bank’s investment in Schwab. Reported net income for the quarter from the

Bank’s investment in Schwab was $194 million (US$144 million), a decrease of $107 million (US$78 million), or 36% (35% in U.S. dollars).

U.S. Retail Bank reported net income was $713 million (US$526 million), a decrease of $570 million (US$425 million), or 44% (45% in U.S. dollars), compared

with the first quarter last year, primarily reflecting the FDIC special assessment in non-interest expenses, lower revenue and higher PCL. U.S. Retail Bank adjusted

net income was $1,023 million (US$752 million), a decrease of $340 million (US$258 million), or 25% (26% in U.S. dollars), compared with the first quarter last

year, reflecting lower revenue, higher PCL and higher non-interest expenses.

Revenue for the quarter was US$2,587 million, a decrease of US$176 million, or 6%, compared with the first quarter last year. Net interest income of

US$2,141 million, decreased US$207 million, or 9%, driven by lower deposit volumes and margins, partially offset by higher loan volumes. Net interest margin of

3.03%, decreased 26 bps, due to lower deposit margins reflecting higher deposit costs and lower margins on loans. Non-interest income of US$446 million

increased US$31 million, or 7%, compared with the first quarter last year, primarily reflecting fee income growth from increased customer activity. 

Average loan volumes increased US$16 billion, or 9%, compared with the first quarter last year. Personal loans increased 11%, reflecting lower mortgage

prepayments in the higher rate environment and strong auto originations. Business loans increased 7%, reflecting good originations from new customer growth

and slower payment rates. Average deposit volumes decreased US$33 billion, or 9%, reflecting a 23% decrease in sweep deposits, a 4% decrease in business

deposits, and a 1% decrease in personal deposit volumes.

Assets under administration (AUA) were US$40 billion as at January 31, 2024, an increase of US$2 billion, or 5%, compared with the first quarter last year,

reflecting net asset growth. After giving effect to realignment of certain asset management businesses from U.S. Retail to Wealth Management and Insurance,

Assets under Management (AUM) were US$7 billion as at January 31, 2024, flat compared with the first quarter last year.

PCL for the quarter was US$285 million, an increase of US$136 million compared with the first quarter last year. PCL – impaired was US$279 million, an

increase of US$121 million, or 77%, primarily reflecting further normalization of credit performance in the consumer lending portfolios and credit migration in the

commercial lending portfolios, largely related to commercial real estate. PCL – performing was a build of US$6 million, compared with a recovery of US$9 million in

the prior year. U.S. Retail PCL including only the Bank’s share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was

0.61%, an increase of 27 bps, compared with the first quarter last year.

Reported non-interest expenses for the quarter were US$1,779 million, an increase of US$267 million, or 18%, compared with the first quarter last year,

reflecting the FDIC special assessment, and higher employee-related expenses, partially offset by acquisition and integration-related charges for the terminated

First Horizon transaction in the first quarter last year. On an adjusted basis, non-interest expenses increased US$45 million, or 3%, reflecting higher employee-

related expenses.

The reported and adjusted efficiency ratios for the quarter were 68.8% and 57.2%, respectively, compared with 54.7% and 51.9%, respectively, in the first

quarter last year.

Quarterly comparison – Q1 2024 vs. Q4 2023

U.S. Retail reported net income of $907 million (US$670 million), a decrease of $362 million (US$267 million), or 29% (28% in U.S. dollars), compared with the

prior quarter. On an adjusted basis, net income for the quarter was $1,217 million (US$896 million), a decrease of $52 million (US$41 million), or 4% (4% in U.S.

dollars). The reported and adjusted annualized ROE for the quarter were 8.5% and 11.3%, respectively, compared with 12.2%, respectively, in the prior quarter. 

The contribution from Schwab of $194 million (US$144 million) decreased $3 million (US$2 million), or 2% (1% in U.S. dollars). 

U.S. Retail Bank reported net income was $713 million (US$526 million), a decrease of $359 million (US$265 million), or 33% (34% in U.S. dollars), compared

with the prior quarter, primarily reflecting the FDIC special assessment in non-interest expenses and higher PCL. U.S. Retail Bank adjusted net income was

$1,023 million (US$752 million), a decrease of $49 million (US$39 million), or 5% (5% in U.S. dollars), primarily reflecting higher PCL, partially offset by lower non-

interest expenses. 

Revenue for the quarter was US$2,587 million, a decrease of US$9 million, relatively flat compared with the prior quarter. Net interest income of

US$2,141 million decreased US$34 million, or 2%, primarily reflecting lower deposit volumes, partially offset by higher loan volumes. Net interest margin of 3.03%

decreased 4 bps quarter over quarter due to lower deposit margins reflecting higher deposit costs, partially offset by the benefit of higher reinvestment rates. Non-

interest income of US$446 million increased US$25 million, or 6%, primarily reflecting higher deposit-related fees.

Average loan volumes increased US$3 billion, or 2%, compared with the prior quarter. Personal loans increased 2%, reflecting lower mortgage prepayments,

strong auto originations, and seasonal credit card growth. Business loans increased 1%, reflecting good originations from new customer growth and slower

payment rates. Average deposit volumes decreased US$5 billion, or 1%, compared with the prior quarter, reflecting a 5% decrease in sweep deposits and a 1%

decrease in business deposits, partially offset by a 1% increase in personal deposit volume. 

AUA were US$40 billion

as at January 31, 2024, flat compared with the prior quarter. After giving effect to realignment of certain asset management businesses

from U.S. Retail to Wealth Management and Insurance, AUM were US$7 billion, flat compared with the prior quarter.

PCL for the quarter was US$285 million, an increase of US$72 million compared with the prior quarter. PCL – impaired was US$279 million, an increase of

US$52 million, or 23%, reflecting further normalization of credit performance in the consumer lending portfolios, including seasonal trends in the credit card and

auto portfolios. PCL – performing was a build of US$6 million, compared with a recovery of US$14 million in the prior quarter. U.S. Retail PCL including only the

Bank’s share of PCL in the U.S. strategic cards portfolio, as an annualized percentage of credit volume was 0.61%, an increase of 15 bps, compared with the prior

quarter. 

Reported non-interest expenses for the quarter were US$1,779 million, an increase of US$274 million, or 18%, compared to the prior quarter, primarily reflecting

the FDIC special assessment. On an adjusted basis, non-interest expenses decreased US$26 million, or 2%, reflecting higher legal costs in the prior quarter,

partially offset by higher employee-related expenses. 

The reported and adjusted efficiency ratios for the quarter were 68.8% and 57.2%, respectively, compared with 58.0%, respectively, in the prior quarter.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 12

TABLE 9: WEALTH MANAGEMENT AND INSURANCE

(millions of Canadian dollars, except as noted)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Net interest income

$

285

$

265

$

283

Non-interest income

1

2,850

2,691

2,632

Total revenue

3,135

2,956

2,915

Provision for (recovery of) credit losses – impaired

–

–

–

Provision for (recovery of) credit losses – performing

–

–

–

Total provision for (recovery of) credit losses

–

–

–

Insurance service expenses

1

1,366

1,346

1,164

Non-interest expenses

1

1,047

957

1,009

Provision for (recovery of) income taxes

167

161

188

Net income

$

555

$

492

$

554

Selected volumes and ratios

Return on common equity

1,2

37.5

%

33.9

%

39.1

%

Efficiency ratio

1

33.4

32.4

34.6

Efficiency ratio, net of ISE

1,3

59.2

59.4

57.6

Assets under administration (billions of Canadian dollars)

4

$

576

$

531

$

541

Assets under management (billions of Canadian dollars)

479

441

452

Average number of full-time equivalent staff

15,386

15,674

16,400

1

 For the three months ended October 31, 2023 and January 31, 2023, certain amounts have been restated for the adoption of IFRS 17. Refer to Note 2 of the Bank’s first quarter 2024

Interim Consolidated Financial Statements for further details.

2

 Capital allocated to the business segment was increased to 11.5% CET1 Capital effective the first quarter of 2024, compared with 11% in the prior year.

3

 Efficiency ratio, net of ISE is calculated by dividing non-interest expenses by total revenue, net of ISE. Total revenue, net of ISE – Q1 2024: $1,769 million, Q4 2023: $1,610 million,

Q1 2023: $1,751 million. Total revenue, net of ISE is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section of this

document and the Glossary in the Bank’s first quarter 2024 MD&A for additional information about this metric.

4

 Includes AUA administered by TD Investor Services, which is part of the Canadian Personal and Commercial Banking segment.

Quarterly comparison – Q1 2024 vs. Q1 2023

Wealth Management and Insurance net income for the quarter was $555 million, an increase of $1 million, or relatively flat compared with the first quarter last year,

reflecting higher revenue, offset by higher insurance service expenses and non-interest expenses. The annualized ROE for the quarter was 37.5%, compared with

39.1% in the first quarter last year.

Revenue for the quarter was $3,135 million, an increase of $220 million, or 8%, compared with the first quarter last year. Non-interest income was

$2,850 million, an increase of $218 million, or 8%, reflecting higher insurance premiums, and higher fee-based revenue in the wealth management business. Net

interest income was $285 million, an increase of $2 million, or 1%, compared with the first quarter last year. 

AUA were $576 billion as at January 31, 2024, an increase of $35 billion, or 6%, compared with the first quarter last year, reflecting market appreciation and net

asset growth. AUM were $479 billion as at January 31, 2024, an increase of $27 billion, or 6%, compared with the first quarter last year, reflecting market

appreciation. 

Insurance service expenses for the quarter were $1,366 million, an increase of $202 million, or 17%, compared with the first quarter last year, reflecting

increased claims severity and less favourable prior years’ claims development. 

Non-interest expenses for the quarter were $1,047 million, an increase of $38 million, or 4%, compared with the first quarter last year, reflecting higher variable

compensation commensurate with higher revenues, and technology costs.

The efficiency ratio for the quarter was 33.4%, compared with 34.6% in the first quarter last year. The efficiency ratio, net of ISE for the quarter was 59.2%,

compared with 57.6% in the first quarter last year.

Quarterly comparison – Q1 2024 vs. Q4 2023

Wealth Management and Insurance net income for the quarter was $555 million, an increase of $63 million, or 13%, compared with the prior quarter, reflecting

higher revenue, partially offset by higher non-interest expenses. The annualized ROE for the quarter was 37.5%, compared with 33.9%, in the prior quarter.

Revenue increased $179 million, or 6%, compared with the prior quarter. Non-interest income increased $159 million, or 6%, reflecting higher insurance

premiums, as well as higher fee-based and transaction revenue in the wealth management business. Net interest income increased $20 million, or 8%, reflecting

higher deposit margins.

AUA increased $45 billion, or 8%, and AUM increased $38 billion, or 9%, compared with the prior quarter, both primarily reflecting market appreciation and net

asset growth. 

Insurance service expenses for the quarter increased $20 million, or 1%, compared with the prior quarter, reflecting less favourable prior years’ claims

development, partially offset by fewer severe weather-related events.

Non-interest expenses increased $90 million, or 9%, compared with the prior quarter, primarily reflecting higher employee-related expenses including variable

compensation commensurate with higher revenues.

The efficiency ratio for the quarter was 33.4%, compared with 32.4% in the prior quarter. The efficiency ratio, net of ISE for the quarter was 59.2%, compared

with 59.4% in the prior quarter.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 13

TABLE 10: WHOLESALE BANKING

1

(millions of Canadian dollars, except as noted)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Net interest income (TEB)

$

198

$

245

$

525

Non-interest income

1,582

1,243

820

Total revenue

1,780

1,488

1,345

Provision for (recovery of) credit losses – impaired

5

–

1

Provision for (recovery of) credit losses – performing

5

57

31

Total provision for (recovery of) credit losses

10

57

32

Non-interest expenses – reported

1,500

1,441

883

Non-interest expenses – adjusted

2,3

1,383

1,244

862

Provision for (recovery of) income taxes (TEB) – reported

65

(27)

99

Provision for (recovery of) income taxes (TEB) – adjusted

2

89

9

104

Net income – reported

$

205

$

17

$

331

Net income – adjusted

2

298

178

347

Selected volumes and ratios

Trading-related revenue (TEB)

4

$

730

$

590

$

662

Average gross lending portfolio (billions of Canadian dollars)

5

96.2

93.0

96.9

Return on common equity – reported

6

5.3

%

0.5

%

9.4

%

Return on common equity – adjusted

2,6

7.6

4.9

9.9

Efficiency ratio – reported

84.3

96.8

65.7

Efficiency ratio – adjusted

2

77.7

83.6

64.1

Average number of full-time equivalent staff

7,100

7,346

5,365

1

 Effective March 1, 2023, Wholesale Banking results include the acquisition of Cowen Inc.

2

 For additional information about the Bank’s use of non-GAAP financial measures, refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section of this

document.

3

 Adjusted non-interest expenses exclude the acquisition and integration-related charges primarily for the Cowen acquisition – Q1 2024: $117 million ($93 million after-tax) , Q4 2023:

$197 million ($161 million after-tax), Q1 2023: $21 million ($16 million after-tax).

4

 Includes net interest income (loss) TEB of ($54) million (Q4 2023: $61 million, Q1 2023: $261 million), and trading income (loss) of $784 million (Q4 2023: $529 million, Q1 2023:

$401 million). Trading-related revenue (TEB) is a non-GAAP financial measure. Refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section of this document

and the Glossary in the Bank’s first quarter of 2024 MD&A for additional information about this metric.

5

 Includes gross loans and bankers’ acceptances relating to Wholesale Banking, excluding letters of credit, cash collateral, credit default swaps, and allowance for credit losses.

6

 Capital allocated to the business segment was increased to 11.5% CET1 Capital effective the first quarter of 2024 compared with 11% in the prior year.

Quarterly comparison – Q1 2024 vs. Q1 2023

Wholesale Banking reported net income for the quarter was $205 million, a decrease of $126 million, or 38%, compared with the first quarter last year, primarily

reflecting higher non-interest expenses, partially offset by higher revenues. On an adjusted basis, net income was $298 million, a decrease of $49 million or 14%.

Revenue for the quarter, including TD Cowen, was $1,780 million, an increase of $435 million, or 32%, compared with the first quarter last year. Higher revenue

primarily reflects higher equity commissions, lending revenue primarily from syndicated and leveraged finance, underwriting fees, and trading-related revenue. 

PCL for the quarter was $10 million, a decrease of $22 million compared with the first quarter last year. PCL – impaired was $5 million. PCL – performing was

$5 million, a decrease of $26 million due to prior period build.

Reported non-interest expenses for the quarter, including TD Cowen, were $1,500 million, an increase of $617 million, or 70%, compared with the first quarter

last year, primarily reflecting TD Cowen and the associated acquisition and integration-related costs and higher variable compensation commensurate with higher

revenues as well as a provision of $102 million taken in connection with the U.S. record keeping matter. On an adjusted basis, non-interest expenses were

$1,383 million, an increase of $521 million, or 60%.

Quarterly comparison – Q1 2024 vs. Q4 2023

Wholesale Banking reported net income for the quarter was $205 million, an increase of $188 million compared with the prior quarter, primarily reflecting higher

revenues, partially offset by higher non-interest expenses. On an adjusted basis, net income was $298 million, an increase of $120 million, or 67%.

Revenue for the quarter increased $292 million, or 20%, compared with the prior quarter. Higher revenue primarily reflects higher trading-related revenue,

lending revenue, and underwriting fees. 

 PCL for the quarter was $10 million, a decrease of $47 million compared with the prior quarter. PCL – impaired was $5 million. PCL – performing was

$5 million, a decrease of $52 million due to prior quarter build.

Reported non-interest expenses for the quarter, increased $59 million, or 4%, compared with the prior quarter, primarily reflecting a provision of $102 million

taken in connection with the U.S. record keeping matter, partially offset by lower acquisition and integration related costs. On an adjusted basis, non-interest

expenses increased $139 million or 11%.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 14

TABLE 11: CORPORATE

(millions of Canadian dollars)

For the three months ended

January 31

October 31

January 31

2024

2023

2023

Net income (loss) – reported

$

(628)

$

(591)

$

(2,617)

Adjustments for items of note

Amortization of acquired intangibles

94

92

54

Acquisition and integration charges related to the Schwab transaction

32

31

34

Share of restructuring and other charges from investment in Schwab

49

35

–

Restructuring charges

291

363

–

Impact from the terminated FHN acquisition-related capital hedging strategy

57

64

876

Litigation settlement

–

–

1,603

Less: impact of income taxes

CRD and federal tax rate increase for fiscal 2022

–

–

(585)

Other items of note

113

127

675

Net income (loss) – adjusted

1

$

(218)

$

(133)

$

(140)

Decomposition of items included in net income (loss) – adjusted

Net corporate expenses

2

$

(254)

$

(227)

$

(191)

Other

36

94

51

Net income (loss) – adjusted

1

$

(218)

$

(133)

$

(140)

Selected volumes

Average number of full-time equivalent staff

23,437

23,491

21,844

1

 For additional information about the Bank’s use of non-GAAP financial measures, refer to “Non-GAAP and Other Financial Measures” in the “How We Performed” section of this

document.

2

 For additional information about this metric, refer to the Glossary in the first quarter of 2023 MD&A, which is incorporated by reference.

Quarterly comparison – Q1 2024 vs. Q1 2023

Corporate segment’s reported net loss for the quarter was $628 million, compared with a reported net loss of $2,617 million in the first quarter last year. The lower

net loss primarily reflects the impact of the Stanford litigation settlement in the prior year, the net effect of the terminated FHN acquisition-related capital hedging

strategy, and prior year recognition of a provision for income taxes in connection with the CRD and increase in the Canadian federal tax rate for fiscal 2022,

partially offset by restructuring charges in the current quarter. Net corporate expenses increased $63 million compared to the prior year, mainly reflecting

investments in our risk and control infrastructure. The adjusted net loss for the quarter was $218 million, compared with an adjusted net loss of $140 million in the

first quarter last year.

Quarterly comparison – Q1 2024 vs. Q4 2023

Corporate segment’s reported net loss for the quarter was $628 million, compared with a reported net loss of $591 million in the prior quarter. The higher net loss

reflects lower revenue in treasury and balance sheet management activities and higher risk and control expenses, partially offset by lower restructuring charges.

Net corporate expenses increased $27 million compared to the prior quarter, mainly reflecting investments in our risk and control infrastructure. The adjusted net

loss for the quarter was $218 million, compared with an adjusted net loss of $133 million in the prior quarter.

TD BANK GROUP • FIRST QUARTER 2024 • EARNINGS NEWS RELEASE

Page 15

SHAREHOLDER AND INVESTOR INFORMATION

Shareholder Services

If you:

And your inquiry relates to:

 Please contact:

Are a registered shareholder (your name appears

on your TD share certificate)

Missing dividends, lost share certificates, estate

questions, address changes to the share register,

dividend bank account changes, the dividend

reinvestment plan, eliminating duplicate mailings of

shareholder materials or stopping (or resuming)

receiving annual and quarterly reports

Transfer Agent:

TSX Trust Company

301-100 Adelaide Street West

Toronto, ON M5H 4H1 

1-800-387-0825 (Canada and U.S. only)

or 416-682-3860

Facsimile: 1-888-249-6189 

shareholderinquiries@tmx.com or www.tsxtrust.com 

Hold your TD shares through the 

Direct Registration System 

in the United States

Missing dividends, lost share certificates, estate

questions, address changes to the share register,

eliminating duplicate mailings of shareholder

materials or stopping (or resuming) receiving annual

and quarterly reports

Co-Transfer Agent and Registrar:

Computershare Trust Company, N.A.

P.O. Box 43006

Providence, RI 02940-3006

or

Computershare Trust Company, N.A.

150 Royall Street

Canton, MA 02021

1-866-233-4836

TDD for hearing impaired: 1-800-231-5469

Shareholders outside of U.S.: 201-680-6578

TDD shareholders outside of U.S.: 201-680-6610

Email inquiries: web.queries@computershare.com

www.computershare.com/investor 

Beneficially own TD shares that are held in the

name of an intermediary, such as a bank, a trust

company, a securities broker or other nominee

Your TD shares, including questions regarding the

dividend reinvestment plan and mailings of

shareholder materials

Your intermediary

For all other shareholder inquiries, please contact TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or email tdshinfo@td.com. Please note that by

leaving us an e-mail or voicemail message, you are providing your consent for us to forward your inquiry to the appropriate party for response. 

Access to Quarterly Results Materials

Interested investors, the media and others may view the first quarter earnings news release, results slides, supplementary financial information, and the Report to

Shareholders on the TD Investor Relations website at www.td.com/investor/.

Quarterly Earnings Conference Call

TD Bank Group will host an earnings conference call in Toronto, Ontario on February 29, 2024. The call will be audio webcast live through TD’s website at

8:30 a.m. ET. The call will feature presentations by TD executives on the Bank’s financial results for first quarter and discussions of related disclosures, followed by

a question-and-answer period with analysts. The presentation material referenced during the call will be available on the TD website at www.td.com/investor on

February 29, 2024, in advance of the call. A listen-only telephone line is available at 416-641-6150 or 1-866-696-5894 (toll free) and the passcode is 2727354#.

The audio webcast and presentations will be archived at www.td.com/investor. Replay of the teleconference will be available from 5:00 p.m. ET on

February 29, 2024, until 11:59 p.m. ET on March 15, 2024, by calling 905-694-9451 or 1-800-408-3053 (toll free). The passcode is 7300743#.

Annual Meeting

Thursday, April 18, 2024

Toronto, Ontario

About TD Bank Group

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

assets and serves over 27.5 million customers in four key businesses operating in a number of locations in financial centres around the globe: Canadian Personal

and Commercial Banking, including TD Canada Trust and TD Auto Finance Canada; U.S. Retail, including TD Bank, America’s Most Convenient Bank®, TD Auto

Finance U.S., TD Wealth (U.S.), and an investment in The Charles Schwab Corporation; Wealth Management and Insurance, including TD Wealth (Canada),

TD Direct Investing, and TD Insurance; and Wholesale Banking, including TD Securities and TD Cowen. TD also ranks among the world’s leading online financial

services firms, with more than 17 million active online and mobile customers. TD had $1.91 trillion in assets on January 31, 2024. The Toronto-Dominion Bank

trades under the symbol “TD” on the Toronto and New York Stock Exchanges.

For further information contact:

Brooke Hales, Vice President, Investor Relations, 416-307-8647, Brooke.hales@td.com 

Elizabeth Goldenshtein, Senior Manager, Corporate Communications, 416-994-4124, Elizabeth.goldenshtein@td.com