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      TD Bank Group Reports Fourth Quarter and Fiscal 2021 Results


      Nouvelles fournies par

      TD Bank Group

      02 déc, 2021, 06:30 ET

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      This quarterly earnings news release should be read in conjunction with the Bank's unaudited fourth quarter 2021 consolidated financial results for the year ended October 31, 2021, included in this Earnings News Release and the audited 2021 Consolidated Financial Statements, prepared in accordance with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB), which is available on TD's website at http://www.td.com/investor/. This analysis is dated December 1, 2021. 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 including the 2021 MD&A 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.

      FOURTH QUARTER FINANCIAL HIGHLIGHTS, compared with the fourth quarter last year:

      • Reported diluted earnings per share were $2.04, compared with $2.80.
      • Adjusted diluted earnings per share were $2.09, compared with $1.60.
      • Reported net income was $3,781 million, compared with $5,143 million.
      • Adjusted net income was $3,866 million, compared with $2,970 million.

      FULL YEAR FINANCIAL HIGHLIGHTS, compared with last year:

      • Reported diluted earnings per share were $7.72, compared with $6.43.
      • Adjusted diluted earnings per share were $7.91, compared with $5.36.
      • Reported net income was $14,298 million, compared with $11,895 million.
      • Adjusted net income was $14,649 million, compared with $9,968 million.

      FOURTH QUARTER ADJUSTMENTS (ITEMS OF NOTE)
      The fourth quarter reported earnings figures included the following items of note:

      • Amortization of intangibles of $74 million ($65 million after tax or 4 cents per share), compared with $61 million ($53 million after tax or 3 cents per share) in the fourth quarter last year.
      • Acquisition and integration charges related to the Schwab transaction of $22 million ($20 million after-tax or 1 cent per share).

      TORONTO, Dec. 2, 2021 /CNW/ - TD Bank Group ("TD" or the "Bank") today announced its financial results for the fourth quarter ended October 31, 2021. Reported earnings were $3.8 billion, down 26% compared with the fourth quarter last year, primarily reflecting a net gain on the sale of the Bank's investment in TD Ameritrade. Adjusted earnings were $3.9 billion, up 30%.

      "In 2021, we demonstrated the value of our diversified business model, delivering continued growth and shareholder returns while supporting millions of households and businesses through a second year of COVID-19-related disruption and uncertainty," said Bharat Masrani, Group President and CEO, TD Bank Group. "Forward-focused investments in new capabilities and innovation drove higher loan and deposit volumes in our retail businesses, increased revenues in Wealth and Insurance, and strong results in our Wholesale business in the fourth quarter of 2021. We ended the year in a position of strength, with a growing base of customers across highly competitive and diversified businesses and a robust capital position, enabling us to increase our dividend and providing us with a strong foundation upon which to continue building our business in 2022."

      The Bank announced a dividend increase of ten cents per common share for the quarter ended January 31, 2022, an increase of 13%.

      Canadian Retail saw momentum in loan and deposit volumes and wealth assets
      Canadian Retail reported net income was $2,137 million, an increase of 19% compared with the fourth quarter last year. The increase in earnings reflects higher revenue and lower provisions for credit losses (PCL), partially offset by higher non-interest expenses. Revenue increased 8%, reflecting strong other income growth across all businesses, as well as strength in commercial loans, credit card sales and mortgage originations. Expenses rose 8% on increased spend to support business growth, including higher variable compensation, primarily in the Wealth business, and investments in technology. PCL decreased by $198 million from the fourth quarter last year, reflecting lower impaired and performing PCL, including a performing PCL recovery this year.

      Canadian Retail finished the year with strong momentum, reporting record volumes in almost every business, supported by accelerated investments in products and services to help customers feel more confident about their financial decisions. The Personal Bank extended its lead in deposits and implemented additional tools and resources to provide better advice to customers as they consider mortgage refinancing and creditor protection options. TD Wealth achieved record growth in net assets and mutual fund net sales and made further enhancements to its direct investing capabilities, adding features to the GoalAssist app and launching the TD Direct Investing Index, a first-of-its-kind snapshot into market trends.

      Record U.S. Retail results supported by consistent strong credit performance and sustained consumer recovery
      U.S. Retail net income was $1,374 million (US$1,092 million), an increase of 58% compared with the fourth quarter last year. The Bank's investment in The Charles Schwab Corporation (Schwab) contributed $246 million (US$195 million) in earnings, compared with the contribution of $339 million (US$255 million) from TD Ameritrade a year ago.

      The U.S. Retail Bank, which excludes the Bank's investment in Schwab, reported net income of $1,128 million (US$897 million), an increase of 112% (123% in U.S. dollars) from the fourth quarter last year, primarily reflecting lower PCL and higher revenue. Revenue increased 2% (8% in U.S. dollars), reflecting growth in consumer loans and accelerated fee amortization as the U.S. Retail Bank helped small business customers obtain forgiveness for approximately 36,500 (US$3.2 billion) Paycheck Protection Program (PPP) loans. PCL was a recovery of $76 million (US$62 million), lower by $648 million (US$495 million) from the same quarter last year, reflecting lower impaired and performing PCL, including a performing PCL recovery this year. Expenses were up 3% in U.S. dollars, reflecting continued investments in the business and higher incentive-based compensation. In Canadian dollars, expenses were down 3%, reflecting appreciation of the Canadian dollar.

      The U.S. Retail Bank continued to deliver innovative solutions to enhance the customer experience and meet the growing need for individualized financial advice and investment solutions. TD Bank, America's Most Convenient Bank® (TD AMCB) announced an expanded collaboration with Autobooks to add invoicing to TD Business Simple Checking, making it easier for small and micro businesses to create and send digital invoices, and launched the Bank's first robo-advisor and hybrid advisor capabilities, TD Automated Investing and TD Automated Investing Plus. The U.S. Retail Bank was proud that TD AMCB ranked first in the J.D. Power 2021 Small Business Banking Satisfaction Study in the South Region for the third time, and in U.S. Small Business Administration lending in its Maine-to-Florida footprint for the fifth consecutive year. TD Auto Finance also took the top spot in the Non-Captive National Bank – Prime Category of the J.D. Power 2021 Dealer Finance Satisfaction Study for the second consecutive year.

      Strong Wholesale Banking performance in Q4
      Wholesale Banking reported net income of $420 million this quarter, a decrease of 14% compared to a very strong fourth quarter last year, reflecting lower revenue and higher non-interest expenses, partially offset by lower PCL. Revenue for the quarter was $1,150 million, a decrease of 8% from last year's elevated levels, primarily reflecting lower trading-related revenue, partially offset by higher lending revenue, advisory fees and equity underwriting. PCL for the quarter was a recovery of $77 million, compared with a recovery of $6 million in the fourth quarter last year, primarily reflecting a performing PCL recovery this quarter.

      The Wholesale Bank was proud to deliver record performance in 2021 as it continued to execute its strategy to build trust and deliver integrated advice and solutions to clients with the goal of long-term shared success. Continuing to show leadership in the ESG space and supporting the transition to a low carbon economy, TD Securities was the only Canadian dealer among five Joint Lead Managers on the European Union's first NextGenerationEU Green Bond, the world's largest ever green bond issuance.

      Capital
      TD's Common Equity Tier 1 Capital ratio was 15.2%1.

      Conclusion
      "We are hopeful that recent progress to end the human and economic impacts of the COVID-19 pandemic will continue well into 2022. As we look ahead, we know that there is still much more to do as we rebuild our economies and tackle the complex challenges we face as a society to create a more sustainable and inclusive future for all. We have committed our know-how and resources to help drive progress," added Masrani.

      "I am proud of our achievements in 2021 and of the progress we have made, and I am most proud of our 90,000 colleagues around the world, who showed tremendous commitment and resilience over this past year. I am confident in TD's future because of the confidence I have in them," concluded Masrani.

      The foregoing contains forward-looking statements. Please refer to the "Caution Regarding Forward-Looking Statements".

      _______________________________

      1 This measure has been included in this document in accordance with OSFI's Capital Adequacy Requirements guideline.

      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 ("2021 MD&A") in the Bank's 2021 Annual Report under the headings "Economic Summary and Outlook" and "The Bank's Response to COVID-19", under the headings "Key Priorities for 2022" and "Operating Environment and Outlook" for the Canadian Retail, U.S. Retail, and Wholesale Banking segments, and under the heading "Focus for 2022" for the Corporate segment, and in other statements regarding the Bank's objectives and priorities for 2022 and beyond and strategies to achieve them, the regulatory environment in which the Bank operates, the Bank's anticipated financial performance, and the potential economic, financial and other impacts of the Coronavirus Disease 2019 (COVID-19). Forward-looking statements are typically identified by words such as "will", "would", "should", "believe", "expect", "anticipate", "intend", "estimate", "plan", "goal", "target", "may", and "could".

      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 the economic, financial, and other impacts of pandemics, including the COVID-19 pandemic; general business and economic conditions in the regions in which the Bank operates; geopolitical risk; the ability of the Bank to execute on long-term strategies and shorter-term key strategic priorities, including the successful completion of acquisitions and dispositions, business retention plans, and strategic plans; technology and cyber security risk (including cyber-attacks or data security breaches) on the Bank's information technology, internet, network access or other voice or data communications systems or services; model risk; fraud activity; 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-party service providers; the impact of new and changes to, or application of, current laws and regulations, including without limitation tax laws, capital guidelines and liquidity regulatory guidance and the bank recapitalization "bail-in" regime; regulatory oversight and compliance risk; increased competition from incumbents and new entrants (including Fintechs and big technology competitors); shifts in consumer attitudes and disruptive technology; 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 currency and interest rates (including the possibility of negative interest rates); 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; existing and potential international debt crises; environmental and social risk (including climate change); 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 2021 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 Acquisitions" or "Significant and Subsequent Events and Pending Acquisitions" 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 2021 MD&A under the headings "Economic Summary and Outlook" and "The Bank's Response to COVID-19", under the headings "Key Priorities for 2022" and "Operating Environment and Outlook" for the Canadian Retail, U.S. Retail, and Wholesale Banking segments, and under the heading "Focus for 2022" 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 securities legislation.

      This document was reviewed by the Bank's Audit Committee and was approved by the Bank's Board of Directors, on the Audit Committee's recommendation, prior to its release.

      TABLE 1: FINANCIAL HIGHLIGHTS







      (millions of Canadian dollars, except as noted)

      As at or for the three months ended


      As at or for the twelve months ended




      October 31



      July 31



      October 31



      October 31



      October 31



      2021


      2021


      2020


      2021


      2020


      Results of operations
















      Total revenue – reported

      $

      10,941


      $

      10,712


      $

      11,844


      $

      42,693


      $

      43,646


      Total revenue – adjusted1


      10,941



      10,712



      10,423



      42,693



      42,225


      Provision for (recovery of) credit losses


      (123)



      (37)



      917



      (224)



      7,242


      Insurance claims and related expenses


      650



      836



      630



      2,707



      2,886


      Non-interest expenses – reported


      5,947



      5,616



      5,709



      23,076



      21,604


      Non-interest expenses – adjusted1


      5,898



      5,576



      5,646



      22,909



      21,338


      Net income – reported


      3,781



      3,545



      5,143



      14,298



      11,895


      Net income – adjusted1


      3,866



      3,628



      2,970



      14,649



      9,968


      Financial positions (billions of Canadian dollars)
















      Total loans net of allowance for loan losses

      $

      722.6


      $

      719.2

      $


      717.5


      $

      722.6


      $

      717.5


      Total assets


      1,728.7



      1,703.1



      1,715.9



      1,728.7



      1,715.9


      Total deposits


      1,125.1



      1,118.7



      1,135.3



      1,125.1



      1,135.3


      Total equity


      99.8



      99.9



      95.5



      99.8



      95.5


      Total risk-weighted assets2


      460.3



      465.5



      478.9



      460.3



      478.9


      Financial ratios
















      Return on common equity (ROE) – reported3


      15.7

      %


      15.3

      %


      23.3

      %


      15.5

      %


      13.6

      %

      Return on common equity – adjusted1


      16.1



      15.6



      13.3



      15.9



      11.4


      Return on tangible common equity (ROTCE)1


      21.3



      20.8



      31.5



      21.2



      18.7


      Return on tangible common equity – adjusted1


      21.4



      20.9



      17.9



      21.4



      15.3


      Efficiency ratio – reported3


      54.4



      52.4



      48.2



      54.1



      49.5


      Efficiency ratio – adjusted1,3


      53.9



      52.0



      54.2



      53.7



      50.5


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
















      average loans and acceptances4


      (0.07)



      (0.02)



      0.49



      (0.03)



      1.00


      Common share information – reported (Canadian dollars)
















      Per share earnings
















      Basic

      $

      2.04


      $

      1.92


      $

      2.80


      $

      7.73


      $

      6.43


      Diluted


      2.04



      1.92



      2.80



      7.72



      6.43


      Dividends per share


      0.79



      0.79



      0.79



      3.16



      3.11


      Book value per share3


      51.66



      51.21



      49.49



      51.66



      49.49


      Closing share price5


      89.84



      82.95



      58.78



      89.84



      58.78


      Shares outstanding (millions)
















      Average basic


      1,820.5



      1,818.8



      1,812.7



      1,817.7



      1,807.3


      Average diluted


      1,823.2



      1,821.8



      1,813.9



      1,820.2



      1,808.8


      End of period


      1,822.0



      1,820.0



      1,815.6



      1,822.0



      1,815.6


      Market capitalization (billions of Canadian dollars)

      $

      163.7


      $

      151.0


      $

      106.7


      $

      163.7


      $

      106.7


      Dividend yield3


      3.7

      %


      3.7

      %


      5.1

      %


      3.9

      %


      4.8

      %

      Dividend payout ratio3


      38.7



      41.2



      28.2



      40.9



      48.3


      Price-earnings ratio3


      11.6



      9.8



      9.2



      11.6



      9.2


      Total shareholder return (1 year)3


      58.9



      44.4



      (17.9)



      58.9



      (17.9)


      Common share information – adjusted (Canadian dollars)1,3
















      Per share earnings
















      Basic

      $

      2.09


      $

      1.96


      $

      1.60


      $

      7.92


      $

      5.37


      Diluted


      2.09



      1.96



      1.60



      7.91



      5.36


      Dividend payout ratio


      37.8

      %


      40.2

      %


      49.2

      %


      39.9

      %


      57.9

      %

      Price-earnings ratio


      11.3



      11.2



      11.0



      11.3



      11.0


      Capital Ratios2















      Common Equity Tier 1 Capital ratio


      15.2

      %


      14.5

      %


      13.1

      %


      15.2

      %


      13.1

      %

      Tier 1 Capital ratio


      16.5



      15.9



      14.4



      16.5



      14.4

      Total Capital ratio


      19.1



      18.5



      16.7



      19.1



      16.7

      Leverage ratio


      4.8



      4.8



      4.5



      4.8



      4.5

      1  

      The Toronto-Dominion Bank ("TD" or the "Bank") prepares its Consolidated Financial Statements in accordance with IFRS, the current Generally Accepted Accounting Principles (GAAP), and refers to results prepared in accordance with IFRS as the "reported" results. The Bank also utilizes non-GAAP financial measures 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 for "items of note", from reported results. 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.

      2  

      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 and Leverage Requirements guidelines. Refer to the "Capital Position" section in the 2021 MD&A for further details.

      3

      For additional information about this metric, refer to the Glossary in the 2021 MD&A, which is incorporated by reference.

      4  

      Excludes acquired credit-impaired (ACI) loans.

      5  

      Toronto Stock Exchange (TSX) closing market price.

      HOW WE PERFORMED

      ECONOMIC SUMMARY AND OUTLOOK
      The global economy's recovery from the COVID-19 pandemic continues. As public health restrictions are lifted, activity is resuming in higher-contact sectors. However, supply disruptions are increasingly constraining the pace of the recovery. Shortages of microchips have led to significant reductions in automobile production around the world, while the logistics industry is struggling with backlogs that are slowing the delivery of products to their final destination.

      Disparities in vaccination rates are driving varying health outcomes, exacerbating supply constraints. Recent outbreaks of COVID-19 in Asia have worsened input shortages and contributed to delays at ports. With containment measures continuing to interrupt workflows, global supply chains remain at risk of ongoing disruption, which could put upward pressure on prices and limit global economic growth.

      The U.S. economy grew by an estimated 2% annualized in the third calendar quarter, down from 6.5% on average in the first half of the year. After unsustainable double-digit growth in each of the first two quarters, consumer spending slowed to an annualized rate of just 1.6% in the third quarter. Much of the pullback was due to a retreat in spending on durable goods. Motor vehicle sales, in particular, contracted by an annualized 54%, in part due to scarcity of available product. In contrast, spending on services continued to recover, but at a slower rate than in previous quarters, as concerns about the Delta variant weighed on the rebound in recreation, food services and accommodation sectors.

      While U.S. GDP now exceeds its pre‑recession level, the recovery has been highly imbalanced. As of the third calendar quarter, spending on goods was 7% above its pre-pandemic level, while spending on services – which comprise a much larger share of the economy – was still 1.6% below that threshold. The divergence has caused a widening in the trade deficit and contributed to supply shortages. A reorientation of activity back toward services should help alleviate some of these pressures, while high levels of savings should help households absorb higher prices and allow for continued growth in calendar 2022.

      The recent slowdown in U.S. economic activity is less evident in the labour market. Job growth picked up in October, suggesting a re-acceleration in economic activity in the final quarter of the calendar year. Demand for workers is very strong – the rate of job openings hit a record high at the midpoint of the year and remains well above pre-pandemic levels – but it is taking longer for employers to fill positions. As of October, there were over three million fewer people in the U.S. labour force than prior to the pandemic. This shrinkage in the labour force is restraining job growth and helping push down the unemployment rate, which hit 4.6% in October.

      The uneven nature of the recovery, alongside ongoing supply constraints, has led to elevated inflationary pressures. The consumer price index rose 5.4% year-over-year in September and has been above the 5% threshold since May of this year. Price pressures appear to be becoming more widespread, encompassing not just goods categories, such as food, energy and vehicles, but also services, including shelter. The latter have historically proven more persistent.

      In November, the Federal Reserve took its first steps toward reducing monetary accommodation, announcing a reduction in its monthly asset purchases from the current rate of US$80 billion in Treasuries and US$40 billion in agency mortgage-backed securities. The central bank will reduce purchases of Treasuries by US$10 billion per month and purchases of mortgage-backed securities by US$5 billion per month, putting it on track to cease expanding its balance sheet by the middle of next year. After that point, TD Economics expects the Federal Reserve to raise the federal funds rate in 25 basis points (bps) increments twice in the second half of calendar 2022. The timing and magnitude of future rate increases may be altered should inflationary pressures fail to ease to the central bank's satisfaction.

      After a pullback in activity in the second calendar quarter, the Canadian economy returned to modest growth in the third quarter. Economic reopening has led to stronger growth in service areas of the economy, but drought conditions severely hampered agricultural output through the summer months, while supply chain shortages led to a pullback in manufacturing activity that has lasted through the fall. As these impacts fade, economic activity is expected to re‑accelerate. While an uptick in virus cases poses a downside risk to the outlook, especially as the winter progresses, Canada's high rates of vaccination and more consistent implementation of mitigating policies, including mask requirements and vaccine "green passes" for indoor activities, should reduce the likelihood of major disruptions to economic activity. Meanwhile, the large pool of excess savings should continue to support spending over the course of 2022.

      One key advantage for the Canadian economy is the outperformance of the labour market, which has seen all of the jobs lost during the initial pandemic shock replaced, and the labour force return to its pre-pandemic size. Still, there is room for additional progress. Job growth has been concentrated in a handful of sectors, while employment in high-contact service industries, such as leisure and hospitality, remains well below pre-COVID levels. In contrast to the dynamic in the U.S., Canada's strong labour force growth has limited the improvement in the unemployment rate, which sat at 6.7% in October. As in the United States, demand for labour is high and job growth is expected to remain healthy.

      The Canadian housing market has remained resilient. After pulling back in the summer, resale activity has re-accelerated in recent months. Average home price growth has also picked up, reflecting tight market conditions across the country. Limited supply may support prices, but the rate of home price growth should slow given the erosion in affordability and an edging up of mortgage rates.

      Consumer price inflation in Canada, while lower than in the U.S., has also picked up in recent months, reaching 4.4% in September, the fastest rate in thirteen years. Accelerating food price growth, along with rising energy and shelter costs, have pushed up inflation. Like the U.S. and other advanced economies, Canada is susceptible to further price pressures from prolonged global supply chain disruptions.

      The Bank of Canada kept its overnight interest rate at 0.25% in October, but went one step further than the Federal Reserve in ending its asset purchase program outright. With a stronger labour market recovery, this puts the Bank of Canada in a position to begin raising interest rates earlier than the Federal Reserve. TD Economics expects the overnight rate to rise by 25 bps in the second calendar quarter of 2022, with two more 25 bps increases to come before the end of the calendar year. TD Economics expects the Canadian dollar to remain in a range of 79-81 U.S. cents over the next two years.

      THE BANK'S RESPONSE TO COVID-19
      Efforts to contain the COVID-19 pandemic continued to have a profound impact on economies around the world throughout fiscal 2021. In North America, the banking sector implemented a variety of measures in March and April of 2020 to ease the strain on consumers and businesses, some of which continued into 2021. Similarly, governments, crown corporations, central banks, and regulators introduced programs to mitigate the fallout of the crisis and support the effective functioning of financial markets, and some of those measures also remained in place in 2021. TD has been actively engaged in the ongoing effort to respond to the COVID-19 pandemic, guided by the principles of supporting the well‑being of its customers and colleagues and maintaining the Bank's operational and financial resilience.

      Beginning in the second quarter of 2020, the Bank enabled substantially all of its employees to work from home. While most of the Bank's branch and store employees were able to return to their workplaces before the 2021 fiscal year began, approximately 60,000 TD colleagues continued to work from home throughout the 2021 fiscal year, and these arrangements are expected to remain in place for some time. TD's operations, including the Bank's technology infrastructure, network capacity, enterprise cloud capabilities, and remote access systems have remained stable in the months since the onset of COVID-19, providing ongoing support for work from home arrangements and a continued high level of online and mobile customer traffic. The Bank continues to evaluate its medium- and long-term plans related to COVID-19, including the impact of the economic recovery and, for various 'return to the workplace' scenarios.

      In fiscal 2020, the Bank offered several forms of direct financial assistance to customers experiencing financial hardship due to COVID-19, including deferral of loan payments. The bulk of this assistance has largely run its course, except for deferrals of real estate secured loans in the U.S., where the program allowed deferrals for up to 18 months. There have been few other customer requests for extensions. As of October 31, 2021, gross loan balances that remained subject to COVID-related deferral programs were approximately $0.04 billion in Canada, primarily reflecting Small Business Banking and Commercial Lending portfolios ($4.4 billion as at October 31, 2020, primarily reflecting Real Estate Secured Lending, Other Consumer Lending, Small Business Banking and Commercial Lending portfolios), and US$0.49 billion in the United States, primarily in the Real Estate Secured Lending portfolio (US$2.2 billion as at October 31, 2020, primarily reflecting Real Estate Secured Lending, Other Consumer Lending, Small Business Banking and Commercial Lending portfolios). Delinquency rates for customers that have exited deferral are higher than for the broader population but remain low in absolute terms, reflecting the continuation of government support and TD's proactive outreach to clients. The Bank continues to provide advice and assistance to customers through its usual channels, TD Helps in Canada and TD Cares in the U.S. Any financial relief offered through these channels is not included in the balances disclosed above.

      In addition to direct financial assistance, the Bank continues to support programs for individuals and businesses introduced by the Canadian and U.S. governments described below.

      Canada Emergency Business Account Program
      Under the Canada Emergency Business Account (CEBA) Program, with funding provided by Her Majesty in Right of Canada (the "Government of Canada") and Export Development Canada (EDC) as the Government of Canada's agent, the Bank provided eligible business banking customers with an interest-free, partially forgivable loan of up to $60,000 until December 31, 2022. If the loan is not repaid by December 31, 2022, it will be extended for an additional 3-year term bearing an interest rate of 5% per annum. The application window for new CEBA loans and expansion requests closed on June 30, 2021. The funding provided to the Bank by the Government of Canada in respect of the CEBA Program represents an obligation to pass-through collections on the CEBA loans and is otherwise non-recourse to the Bank. As of October 31, 2021, the Bank had provided approximately 213,000 customers (July 31, 2021 – 211,000) with CEBA loans and had funded approximately $11.6 billion (July 31, 2021 – $11.5 billion) in loans under the program.

      U.S. Coronavirus Aid, Relief, and Economic Security Act, Paycheck Protection Program
      Under the Paycheck Protection Program (PPP) established by the U.S. Coronavirus Aid, Relief, and Economic Security (CARES) Act and implemented by the Small Business Administration (SBA), the Bank provided loans to small businesses to assist them in retaining workers, maintaining payroll, and covering other expenses. PPP loans have a 2-year or 5-year term, bear an interest rate of 1% per annum, and are 100% guaranteed by the SBA. The full principal amount of the loan and any accrued interest are eligible for forgiveness if the loan is used for qualifying expenses. The Bank receives fees on PPP loans generally ranging from 1-5% of the loan's value at origination. The fees are amortized over the life of the loan, with any unamortized amount upon forgiveness being recognized immediately as income. The Bank will be paid by the SBA for any portion of the loan that is forgiven. The application window for new PPP loans closed on May 31, 2021. As of October 31, 2021, the Bank had funded approximately 133,000 PPP loans (July 31, 2021 – 133,000) and had approximately 36,000 PPP loans outstanding (July 31, 2021 – 72,500) with a gross carrying amount of approximately US$3.1 billion (July 31, 2021 – US$6.3 billion). During the three months ended October 31, 2021, no new PPP loans were originated (three months ended July 31, 2021 – 2,000 new PPP loans, US$0.2 billion) and approximately 36,500 PPP loans (US$3.2 billion) were forgiven (three months ended July 31, 2021 – 27,500 PPP loans, US$3.7 billion).

      Other Programs
      During 2021, the Bank continued to work with federal Crown Corporations, including EDC and the Business Development Bank of Canada (BDC) to deliver various other guarantee and co-lending programs for the Bank's clients. This includes the Highly Affected Sectors Credit Availability Program (HASCAP) Guarantee to provide support to Canadian businesses that have been highly affected by and are facing economic hardship as a result of the COVID-19 pandemic which launched in the second fiscal quarter. In addition, TD is working with Canada's federal government to facilitate access to the Canada Recovery Benefit and Canada Emergency Wage Subsidy through Canada Revenue Agency direct deposit.

      HOW THE BANK REPORTS
      The Bank prepares its Consolidated Financial Statements in accordance with IFRS, the current GAAP, 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, 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 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
      On October 6, 2020, the Bank acquired an approximately 13.5% stake in 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"). For further details, refer to Note 12 of the 2021 Consolidated Financial Statements. The Bank's share of Schwab's earnings is reported with a one-month lag, and the Bank started recording its share of Schwab's earnings on this basis in the first quarter of fiscal 2021. 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 and the acquisition and integration charges related to the Schwab transaction.

      On November 25, 2019, the Bank and Schwab entered into an insured deposit account agreement (the "Schwab IDA Agreement"), which became effective upon closing of the Schwab transaction and has an initial expiration date of July 1, 2031. Refer to the "Related Party Transactions" section in the 2021 MD&A for further details.

      SIGNIFICANT ACQUISITIONS

      The Bank completed two acquisitions during fiscal 2021:

      Acquisition of Wells Fargo & Company's Canadian Direct Equipment Finance Business
      On May 1, 2021, the Bank acquired the Canadian Direct Equipment Finance business of Wells Fargo & Company. The results of the acquired business have been consolidated from the acquisition date and included in the Canadian Retail segment.

      Acquisition of Headlands Tech Global Markets, LLC
      On July 1, 2021, the Bank acquired Headlands Tech Global Markets, LLC, a Chicago based quantitative fixed income trading company. The results of the acquired business have been consolidated from the acquisition date and included in the Wholesale segment.

      These acquisitions were accounted for as business combinations under the purchase method. The excess of accounting consideration over the fair value of tangible net assets acquired is allocated to other intangibles and goodwill.

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

      TABLE 2: OPERATING RESULTS – Reported1











      (millions of Canadian dollars)

      For the three months ended

      For the twelve months ended



      October 31

      July 31

      October 31

      October 31


      October 31



      2021

      2021

      2020

      2021


      2020

      Net interest income

      $

      6,262

      $

      6,004

      $

      6,027

      $

      24,131

      $

      24,497

      Non-interest income


      4,679


      4,708


      5,817


      18,562


      19,149

      Total revenue


      10,941


      10,712


      11,844


      42,693


      43,646

      Provision for (recovery of) credit losses


      (123)


      (37)


      917


      (224)


      7,242

      Insurance claims and related expenses


      650


      836


      630


      2,707


      2,886

      Non-interest expenses


      5,947


      5,616


      5,709


      23,076


      21,604

      Income before income taxes and share of net income from












      investment in Schwab and TD Ameritrade


      4,467


      4,297


      4,588


      17,134


      11,914

      Provision for (recovery of) income taxes


      910


      922


      (202)


      3,621


      1,152

      Share of net income from investment in Schwab and TD Ameritrade


      224


      170


      353


      785


      1,133

      Net income – reported


      3,781


      3,545


      5,143


      14,298


      11,895

      Preferred dividends and distributions on other equity instruments


      63


      56


      64


      249


      267

      Net income available to common shareholders

      $

      3,718

      $

      3,489

      $

      5,079

      $

      14,049

      $

      11,628

      1  

      Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

      The following table provides a reconciliation between the Bank's adjusted and reported results.

      TABLE 3: NON-GAAP FINANCIAL MEASURES – Reconciliation of Adjusted to Reported Net Income1





      (millions of Canadian dollars)

      For the three months ended

      For the twelve months ended



      October 31

      July 31

      October 31

      October 31


      October 31


      2021

      2021

      2020

      2021


      2020

      Operating results – adjusted











      Net interest income

      $

      6,262

      $

      6,004

      $

      6,027

      $

      24,131

      $

      24,497

      Non-interest income2


      4,679


      4,708


      4,396


      18,562


      17,728

      Total revenue


      10,941


      10,712


      10,423


      42,693


      42,225

      Provision for (recovery of) credit losses


      (123)


      (37)


      917


      (224)


      7,242

      Insurance claims and related expenses


      650


      836


      630


      2,707


      2,886

      Non-interest expenses3


      5,898


      5,576


      5,646


      22,909


      21,338

      Income before income taxes and share of net income from












      investment in Schwab and TD Ameritrade


      4,516


      4,337


      3,230


      17,301


      10,759

      Provision for income taxes


      921


      931


      636


      3,658


      2,020

      Share of net income from investment in Schwab and TD Ameritrade4


      271


      222


      376


      1,006


      1,229

      Net income – adjusted


      3,866


      3,628


      2,970


      14,649


      9,968

      Preferred dividends and distributions on other equity instruments


      63


      56


      64


      249


      267

      Net income available to common shareholders – adjusted


      3,803


      3,572


      2,906


      14,400


      9,701

      Pre-tax adjustments for items of note











      Amortization of acquired intangibles5


      (74)


      (68)


      (61)


      (285)


      (262)

      Acquisition and integration charges related to the Schwab transaction6


      (22)


      (24)


      –


      (103)


      –

      Net gain on sale of the investment in TD Ameritrade2


      –


      –


      1,421


      –


      1,421

      Charges associated with the acquisition of Greystone3


      –


      –


      (25)


      –


      (100)

      Less: Impact of income taxes











      Amortization of acquired intangibles


      (9)


      (7)


      (8)


      (32)


      (37)

      Acquisition and integration charges related to the Schwab transaction6


      (2)


      (2)


      –


      (5)


      –

      Net gain on sale of the investment in TD Ameritrade


      –


      –


      (829)


      –


      (829)

      Charges associated with the acquisition of Greystone


      –


      –


      (1)


      –


      (2)

      Total adjustments for items of note


      (85)


      (83)


      2,173


      (351)


      1,927

      Net income available to common shareholders – reported

      $

      3,718

      $

      3,489

      $

      5,079

      $

      14,049

      $

      11,628

      1 

      Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

      2

      Adjusted non-interest income excludes the following item of note related to the Bank's own asset acquisitions and business combinations:


      i.

      Net gain on sale of the investment in TD Ameritrade – Q4 2020: $1,421 million. This amount was reported in the Corporate segment.

      3 

      Adjusted non-interest expenses exclude the following items of note related to the Bank's asset acquisitions and business combinations:


      i.

      Amortization of acquired intangibles – Q4 2021: $40 million, Q3 2021: $34 million, 2021: $148 million, Q4 2020: $38 million, 2020: $166 million. These charges are reported in the Corporate segment.


      ii.

      The Bank's own integration costs related to the Schwab transaction – Q4 2021: $9 million, Q3 2021: $6 million, 2021: $19 million. These costs are reported in the Corporate segment.


      iii.

      Charges associated with the acquisition of Greystone – Q4 2020: $25 million, 2020: $100 million. These charges were reported in the Canadian Retail segment.

      4 

      Adjusted share of net income from investment in Schwab and TD Ameritrade excludes the following items of note on an after-tax basis. The earnings impact of both items is reported in the Corporate segment:


      i.

      Amortization of Schwab and TD Ameritrade-related acquired intangibles – Q4 2021: $34 million, Q3 2021: $34 million, 2021: $137 million, Q4 2020: $23 million, 2020: $96 million; and


      ii.

      The Bank's share of acquisition and integration charges associated with Schwab's acquisition of TD Ameritrade – Q4 2021: $13 million, Q3 2021: $18 million, 2021: $84 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 and TD Ameritrade, both reported in the Corporate segment. Refer to footnotes 3 and 4 for amounts.

      6  

      Acquisition and integration charges related to the Schwab transaction include the Bank's own integration costs, as well as the Bank's share of acquisition and integration charges associated with Schwab's acquisition of TD Ameritrade on an after-tax basis, both reported in the Corporate segment. Refer to footnotes 3 and 4 for amounts.

      TABLE 4: RECONCILIATION OF REPORTED TO ADJUSTED EARNINGS PER SHARE1


      (Canadian dollars)


      For the three months ended

      For the twelve months ended


      October 31

      July 31

      October 31

      October 31


      October 31


      2021

      2021

      2020

      2021


      2020

      Basic earnings per share – reported

      $

      2.04

      $

      1.92

      $

      2.80

      $

      7.73

      $

      6.43

      Adjustments for items of note


      0.05


      0.04


      (1.20)


      0.19


      (1.06)

      Basic earnings per share – adjusted

      $

      2.09

      $

      1.96

      $

      1.60

      $

      7.92

      $

      5.37












      Diluted earnings per share – reported

      $

      2.04

      $

      1.92

      $

      2.80

      $

      7.72

      $

      6.43

      Adjustments for items of note


      0.05


      0.04


      (1.20)


      0.19


      (1.07)

      Diluted earnings per share – adjusted

      $

      2.09

      $

      1.96

      $

      1.60

      $

      7.91

      $

      5.36

      1    

      EPS is computed by dividing net income available to common shareholders by the weighted-average number of shares outstanding during the period.

      TABLE 5: NON-GAAP FINANCIAL MEASURES – Reconciliation of Reported to Adjusted Provision for Income Taxes


      (millions of Canadian dollars, except as noted)

      For the three months ended


      For the twelve months ended



      October 31


      July 31


      October 31


      October 31


      October 31



      2021


      2021


      2020


      2021


      2020


      Provision for income taxes – reported

      $

      910


      $

      922


      $

      (202)


      $

      3,621


      $

      1,152


      Total adjustments for items of note


      11



      9



      838



      37



      868


      Provision for income taxes – adjusted

      $

      921


      $

      931


      $

      636


      $

      3,658


      $

      2,020


      Effective income tax rate – reported


      20.4

      %


      21.5

      %


      (4.4)

      %


      21.1

      %


      9.7

      %

      Effective income tax rate – adjusted1


      20.4



      21.5



      19.7



      21.1



      18.8


      1  

      For additional information about this metric, refer to the Glossary in the 2021 MD&A, which is incorporated by reference. 

      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 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 decreased to 9% Common Equity Tier 1 (CET1) Capital effective the second quarter of 2020 compared with 10.5% in the first quarter of 2020, and 10% in fiscal 2019.

      TABLE 6: RETURN ON COMMON EQUITY








      (millions of Canadian dollars, except as noted)


      For the three months ended


      For the twelve months ended



      October 31


      July 31


      October 31


      October 31


      October 31



      2021


      2021


      2020


      2021


      2020


      Average common equity

      $

      93,936


      $

      90,626


      $

      86,883


      $

      90,677


      $

      85,203


      Net income available to common shareholders – reported


      3,718



      3,489



      5,079



      14,049



      11,628


      Items of note, net of income taxes


      85



      83



      (2,173)



      351



      (1,927)


      Net income available to common shareholders – adjusted

      $

      3,803


      $

      3,572


      $

      2,906


      $

      14,400


      $

      9,701


      Return on common equity – reported


      15.7

      %


      15.3

      %


      23.3

      %


      15.5

      %


      13.6

      %

      Return on common equity – adjusted


      16.1



      15.6



      13.3



      15.9



      11.4


      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 TD Ameritrade 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 7: RETURN ON TANGIBLE COMMON EQUITY








      (millions of Canadian dollars, except as noted)


      For the three months ended


      For the twelve months ended




      October 31


      July 31


      October 31


      October 31


      October 31




      2021


      2021


      2020


      2021


      2020


      Average common equity

      $

      93,936


      $

      90,626


      $

      86,883


      $

      90,677


      $

      85,203


      Average goodwill


      16,408



      16,056



      17,087



      16,404



      17,261


      Average imputed goodwill and intangibles on

















      investments in Schwab and TD Ameritrade


      6,570



      6,485



      4,826



      6,667



      4,369


      Average other acquired intangibles1


      565



      419



      449



      439



      509


      Average related deferred tax liabilities


      (173)



      (171)



      (237)



      (171)



      (255)


      Average tangible common equity


      70,566



      67,837



      64,758



      67,338



      63,319



















      Net income available to common shareholders – reported


      3,718



      3,489



      5,079



      14,049



      11,628


      Amortization of acquired intangibles, net of income taxes


      65



      61



      53



      253



      225


      Net income available to common shareholders adjusted for

















      amortization of acquired intangibles, net of income taxes


      3,783



      3,550



      5,132



      14,302



      11,853


      Other items of note, net of income taxes


      20



      22



      (2,226)



      98



      (2,152)


      Net income available to common shareholders – adjusted

      $

      3,803


      $

      3,572


      $

      2,906


      $

      14,400


      $

      9,701


      Return on tangible common equity


      21.3

      %


      20.8

      %


      31.5

      %


      21.2

      %


      18.7

      %

      Return on tangible common equity – adjusted


      21.4



      20.9



      17.9



      21.4



      15.3


      1  

      Excludes intangibles relating to software and asset servicing rights.

      IMPACT OF FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT TRANSLATED EARNINGS
      The following table reflects the estimated impact of foreign currency translation on key U.S. Retail segment income statement items. The impact is calculated as the difference in translated earnings using the average US to Canadian dollars exchange rates in the periods noted.

      TABLE 8: IMPACT OF FOREIGN EXCHANGE RATE ON U.S. RETAIL SEGMENT TRANSLATED EARNINGS


      (millions of Canadian dollars, except as noted)

      For the three months ended

      For the twelve months ended


      October 31, 2021 vs.


      October 31, 2021 vs.


      October 31, 2020


      October 31, 2020


      Increase (Decrease)


      Increase (Decrease)

      U.S. Retail Bank





      Total revenue

      $

      (144)

      $

      (752)

      Non-interest expenses


      (84)


      (443)

      Net income – after-tax


      (58)


      (300)

      Share of net income from investment in Schwab1


      (14)


      (57)

      U.S. Retail segment net income


      (72)


      (357)

      Earnings per share (Canadian dollars)





      Basic

      $

      (0.04)

      $

      (0.20)

      Diluted


      (0.04)


      (0.20)

      1  

      Share of net income from investment in Schwab and the foreign exchange impact are reported with a one-month lag.






      Average foreign exchange rate (equivalent of CAD $1.00)

      For the three months ended

      For the twelve months ended


      October 31

      October 31

      October 31

      October 31


      2021

      2020

      2021

      2020

      U.S. dollar

      0.796

      0.756

      0.795

      0.743

      HOW OUR BUSINESSES PERFORMED

      For management reporting purposes, the Bank reports its results under three key business segments: Canadian Retail, which includes the results of the personal and commercial banking, wealth, and insurance businesses; U.S. Retail, which includes the results of the personal and business banking operations, wealth management services, and the Bank's investment in Schwab; 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 Note 29 of the Bank's Consolidated Financial Statements for the year ended October 31, 2021.

      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 TEB, which means that the value of non-taxable or tax exempt income, including dividends, is adjusted to its equivalent before-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 $36 million, compared with $44 million in the fourth quarter last year, and $37 million in the prior quarter.

      Share of net income from investment in Schwab is reported in the U.S. Retail segment. Amounts for amortization of acquired intangibles and the acquisition and integration charges related to the Schwab transaction are recorded in the Corporate segment.

      TABLE 9: CANADIAN RETAIL



      (millions of Canadian dollars, except as noted)



      For the three months ended 



      October 31 


      July 31 


      October 31 



      2021


      2021


      2020


      Net interest income

      $

      3,062


      $

      3,044


      $

      2,982


      Non-interest income


      3,458



      3,535



      3,047


      Total revenue


      6,520



      6,579



      6,029


      Provision for (recovery of) credit losses – impaired


      140



      154



      199


      Provision for (recovery of) credit losses – performing


      (87)



      (54)



      52


      Total provision for (recovery of) credit losses


      53



      100



      251


      Insurance claims and related expenses


      650



      836



      630


      Non-interest expenses – reported


      2,912



      2,748



      2,684


      Non-interest expenses – adjusted1


      2,912



      2,748



      2,659


      Provision for (recovery of) income taxes – reported


      768



      770



      662


      Provision for (recovery of) income taxes – adjusted1


      768



      770



      663


      Net income – reported


      2,137



      2,125



      1,802


      Net income – adjusted1

      $

      2,137


      $

      2,125


      $

      1,826












      Selected volumes and ratios










      Return on common equity – reported2


      47.7

      %


      47.6

      %


      40.5

      %

      Return on common equity – adjusted1,2


      47.7



      47.6



      41.0


      Net interest margin (including on securitized assets)


      2.57



      2.61



      2.71


      Efficiency ratio – reported


      44.7



      41.8



      44.5


      Efficiency ratio – adjusted1


      44.7



      41.8



      44.1


      Assets under administration (billions of Canadian dollars)3

      $

      557


      $

      538


      $

      433


      Assets under management (billions of Canadian dollars)3


      427



      420



      358


      Number of Canadian retail branches


      1,061



      1,073



      1,085


      Average number of full-time equivalent staff


      42,205



      41,763



      40,725


      1  

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

      2  

      Capital allocated to the business segment was 9% CET1 Capital.

      3  

      For additional information about this metric, refer to the Glossary in the 2021 MD&A, which is incorporated by reference.

      Quarterly comparison – Q4 2021 vs. Q4 2020
      Canadian Retail reported net income for the quarter was $2,137 million, an increase of $335 million, or 19%, compared with the fourth quarter last year, reflecting higher revenue and lower PCL, partially offset by higher non-interest expenses. On an adjusted basis, net income increased $311 million, or 17%. The reported and adjusted annualized ROE for the quarter was 47.7%, compared with 40.5% and 41.0%, respectively, in the fourth quarter last year.

      Canadian Retail revenue is derived from the Canadian personal and commercial banking, wealth, and insurance businesses. Revenue for the quarter was $6,520 million, an increase of $491 million, or 8%, compared with the fourth quarter last year.

      Net interest income was $3,062 million, an increase of $80 million, or 3%, reflecting volume growth, partially offset by lower deposit margins. Average loan volumes increased $37 billion, or 8%, reflecting 8% growth in personal loans and 11% growth in business loans. Average deposit volumes increased $47 billion, or 11%, reflecting 8% growth in personal deposits, 17% growth in business deposits, and 12% growth in wealth deposits. Net interest margin was 2.57%, a decrease of 14 bps, reflecting changes to balance sheet mix and the ongoing impact of the low interest rate environment.

      Non-interest income was $3,458 million, an increase of $411 million, or 13%, reflecting higher fee-based revenue in the wealth and banking businesses, and higher insurance volumes, partially offset by a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease in insurance claims.

      Assets under administration (AUA) were $557 billion as at October 31, 2021, an increase of $124 billion, or 29%, and Assets under management (AUM) were $427 billion as at October 31, 2021, an increase of $69 billion, or 19%, compared with the fourth quarter last year, both reflecting market appreciation and new asset growth.

      PCL was $53 million, a decrease of $198 million, compared with the fourth quarter last year. PCL – impaired for the quarter was $140 million, a decrease of $59 million, or 30% largely in the credit card and commercial lending portfolios, primarily related to improved credit conditions. PCL – performing was a recovery of $87 million, lower by $139 million, reflecting a performing allowance increase in the prior year, and allowance release this quarter largely related to improved credit conditions. Total PCL as an annualized percentage of credit volume was 0.04%, or a decrease of 18 bps compared with the fourth quarter last year.

      Insurance claims and related expenses for the quarter were $650 million, an increase of $20 million, or 3%, compared with the fourth quarter last year, reflecting less favourable prior years' claims development and higher current year claims from business growth, partially offset by improved current year claims experience and a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease in non-interest income.

      Reported non-interest expenses for the quarter were $2,912 million, an increase of $228 million, or 8%, compared with the fourth quarter last year, reflecting higher spend supporting business growth, including technology and marketing costs, higher employee-related expenses and variable compensation, partially offset by prior year charges related to the Greystone acquisition. On an adjusted basis, non-interest expenses increased $253 million, or 10%.

      The reported and adjusted efficiency ratio for the quarter was 44.7%, compared with 44.5% and 44.1%, respectively, in the fourth quarter last year.

      Quarterly comparison – Q4 2021 vs. Q3 2021
      Canadian Retail net income for the quarter increased $12 million, or 1%, compared with the prior quarter, reflecting lower PCL and lower insurance claims, partially offset by higher non-interest expenses and impact of premium rebates for customers in the insurance business. The annualized ROE for the quarter was 47.7%, compared with 47.6% in the prior quarter.

      Revenue decreased $59 million, or 1%, compared with the prior quarter. Net interest income increased $18 million, or 1%, reflecting volume growth, partially offset by lower margins. Average loan volumes increased $10 billion, or 2%, reflecting 2% growth in personal loans and 3% growth in business loans. Average deposit volumes increased $12 billion, or 3%, reflecting 2% growth in personal deposits, 4% growth in business deposits, and 3% growth in wealth deposits. Net interest margin was 2.57%, a decrease of 4 bps, reflecting lower mortgage prepayment revenue.

      Non-interest income decreased $77 million, or 2%, reflecting the impact of premium rebates for customers in the insurance business and a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease in insurance claims, partially offset by higher fee-based revenue in the wealth and banking businesses.

      AUA increased $19 billion, or 4%, and AUM increased $7 billion, or 2%, compared with the prior quarter, both reflecting market appreciation and new asset growth.

      PCL was $53 million, a decrease of $47 million, compared with the prior quarter. PCL – impaired decreased $14 million, or 9%, primarily reflected in the consumer lending portfolios. PCL – performing was a recovery of $87 million compared to a recovery of $54 million in the prior quarter, largely reflecting continued improvement in credit conditions. Total PCL as an annualized percentage of credit volume was 0.04%, a decrease of 4 bps.

      Insurance claims and related expenses for the quarter decreased $186 million, or 22%, compared with the prior quarter, reflecting more favourable prior years' claims development, fewer severe weather-related events and a decrease in the fair value of investments supporting claims liabilities which resulted in a similar decrease in non-interest income.

      Non-interest expenses increased $164 million, or 6%, compared with the prior quarter, reflecting higher spend supporting business growth, including technology and marketing costs, higher employee-related expenses and variable compensation.

      The efficiency ratio for the quarter was 44.7%, compared with 41.8% in the prior quarter.

      TABLE 10: U.S. RETAIL










      (millions of dollars, except as noted)


      For the three months ended



      October 31


      July 31


      October 31


      Canadian Dollars


      2021



      2021



      2020


      Net interest income

      $

      2,103


      $

      1,990


      $

      2,071


      Non-interest income


      677



      691



      646


      Total revenue


      2,780



      2,681



      2,717


      Provision for (recovery of) credit losses – impaired


      68



      63



      147


      Provision for (recovery of) credit losses – performing


      (144)



      (159)



      425


      Total provision for (recovery of) credit losses


      (76)



      (96)



      572


      Non-interest expenses


      1,617



      1,518



      1,660


      Provision for (recovery of) income taxes


      111



      161



      (47)


      U.S. Retail Bank net income


      1,128



      1,098



      532


      Share of net income from investment in Schwab and TD Ameritrade1,2


      246



      197



      339


      Net income

      $

      1,374


      $

      1,295


      $

      871












      U.S. Dollars










      Net interest income

      $

      1,673


      $

      1,619


      $

      1,566


      Non-interest income


      539



      561



      488


      Total revenue


      2,212



      2,180



      2,054


      Provision for (recovery of) credit losses – impaired


      53



      53



      111


      Provision for (recovery of) credit losses – performing


      (115)



      (127)



      322


      Total provision for (recovery of) credit losses


      (62)



      (74)



      433


      Non-interest expenses


      1,288



      1,233



      1,254


      Provision for (recovery of) income taxes


      89



      130



      (36)


      U.S. Retail Bank net income


      897



      891



      403


      Share of net income from investment in Schwab and TD Ameritrade1,2


      195



      161



      255


      Net income

      $

      1,092


      $

      1,052


      $

      658












      Selected volumes and ratios










      Return on common equity3


      14.5

      %


      13.8

      %


      9.0

      %

      Net interest margin4


      2.21



      2.16



      2.27


      Efficiency ratio


      58.2



      56.6



      61.1


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

      $

      30


      $

      29


      $

      24


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


      41



      41



      39


      Number of U.S. retail stores


      1,148



      1,142



      1,223


      Average number of full-time equivalent staff


      24,771



      25,047



      26,460


      1  

      The Bank's share of Schwab's and TD Ameritrade's earnings is reported with a one-month lag. Refer to Note 12 of the 2021 Consolidated Financial Statements for further details.

      2  

      The after-tax amounts for amortization of acquired intangibles and the Bank's share of acquisition and integration charges associated with Schwab's acquisition of TD Ameritrade are recorded in the Corporate segment.

      3  

      Capital allocated to the business segment was 9% CET1 Capital.

      4  

      Net interest margin is calculated by dividing U.S. Retail segment's net interest income by average interest-earning assets excluding the impact related to sweep deposits arrangements and the impact of intercompany deposits and cash collateral, which management believes better reflects segment performance. In addition, the value of tax-exempt interest income is adjusted to its equivalent before-tax value. Net interest income and average interest-earning assets used in the calculation 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.

      Quarterly comparison – Q4 2021 vs. Q4 2020 
      U.S. Retail net income for the quarter was $1,374 million (US$1,092 million), an increase of $503 million (US$434 million), or 58% (66% in U.S. dollars), compared with the fourth quarter last year. The annualized ROE for the quarter was 14.5%, compared with 9.0%, in the fourth quarter last year.

      U.S. Retail net income includes contributions from the U.S. Retail Bank and the Bank's investment in Schwab. Net income for the quarter from the U.S. Retail Bank and the Bank's investment in Schwab were $1,128 million (US$897 million) and $246 million (US$195 million), respectively.

      The contribution from the Bank's investment in Schwab of US$195 million decreased US$60 million, or 24%, compared with the contribution from the Bank's investment in TD Ameritrade in the fourth quarter last year.

      U.S. Retail Bank net income of US$897 million increased US$494 million, primarily reflecting lower PCL and higher revenue.

      U.S. Retail Bank revenue is derived from personal and business banking, and wealth management businesses. Revenue for the quarter was US$2,212 million, an increase of US$158 million, or 8%, compared with the fourth quarter last year. Net interest income increased US$107 million, or 7%, reflecting accelerated fee amortization from PPP loan forgiveness and growth in deposit volumes, partially offset by lower deposit margins. Net interest margin was 2.21%, a decrease of 6 bps, primarily reflecting lower deposit margins, partially offset by PPP loan forgiveness. Non-interest income increased US$51 million, or 10%, primarily reflecting higher valuation of certain investments and fee income growth from increased customer activity.

      Average loan volumes decreased US$11 billion, or 6%, compared with the fourth quarter last year, reflecting a 1% decline in personal loans, and a 10% decline in business loans, primarily due to PPP loan forgiveness and paydowns and lower line usage on commercial loans. Average deposit volumes increased US$26 billion, or 7%, reflecting a 16% increase in personal deposit volumes, and an 11% increase in business deposit volumes, partially offset by a 2% decrease in sweep deposit volumes.

      AUA were US$30 billion as at October 31, 2021, an increase of US$6 billion, or 25%, compared with the fourth quarter last year, reflecting loan and deposit growth. AUM were US$41 billion as at October 31, 2021, an increase of US$2 billion, or 5%, reflecting market appreciation, partially offset by net asset outflows.

      PCL for the quarter was a recovery of US$62 million, lower by US$495 million compared with the fourth quarter last year. PCL – impaired was US$53 million, a decrease of US$58 million, or 52%, largely related to improved credit conditions. PCL – performing was a recovery of US$115 million, lower by US$437 million, reflecting a performing allowance increase in the prior year, and a release this quarter reflecting improved credit conditions. 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 -0.15%, lower by 116 bps, compared with the fourth quarter last year.

      Non-interest expenses for the quarter were US$1,288 million, an increase of US$34 million, or 3%, compared with the fourth quarter last year, primarily reflecting higher incentive compensation costs and higher investments in the business, partially offset by productivity savings.

      Income taxes reflect a provision of US$89 million, compared to a recovery of US$36 million in the fourth quarter last year, higher by US$125 million, primarily reflecting higher pre-tax income, partially offset by changes to the estimated liability for uncertain tax positions.

      The efficiency ratio for the quarter was 58.2%, compared with 61.1% in the fourth quarter last year.

      Quarterly comparison – Q4 2021 vs. Q3 2021
      U.S. Retail net income increased $79 million (US$40 million), or 6% (4% in U.S. dollars), compared with the prior quarter. The annualized ROE for the quarter was 14.5%, compared to 13.8%, in the prior quarter.

      The contribution from the Bank's investment in Schwab was US$195 million, an increase of US$34 million, or 21%, compared with the prior quarter, primarily reflecting higher net interest revenue, lower operating expenses, and higher asset management fees.

      U.S. Retail Bank net income for the quarter increased US$6 million, or 1%, compared with the prior quarter.

      Revenue for the quarter increased US$32 million, or 1%. Net interest income increased US$54 million, or 3%, and net interest margin was 2.21%, an increase of 5 bps, reflecting higher investment income and accelerated fee amortization from PPP loan forgiveness. Non-interest income decreased US$22 million, or 4%, primarily reflecting lower losses on low-income housing investments in the prior quarter, partially offset by higher valuation of certain investments in the current quarter.

      Average loan volumes decreased US$4 billion, or 2%, compared with the prior quarter, reflecting a 6% decline in business loans, primarily due to PPP loan forgiveness and paydowns and lower line usage on commercial loans, partially offset by a 2% increase in personal loans. Average deposit volumes were relatively flat, reflecting a 4% increase in business deposit volumes and 2% increase in personal deposit volumes, offset by a 3% decrease in sweep deposit volumes.

      AUA were US$30 billion as at October 31, 2021, an increase of US$1 billion, or 4%, compared with the prior quarter, reflecting loan and deposit growth. AUM were US$41 billion as at October 31, 2021, flat compared with prior quarter.

      PCL was a recovery of US$62 million compared with a recovery of US$74 million in the prior quarter. PCL – impaired was flat compared to prior quarter. PCL – performing was a recovery of US$115 million, compared with a recovery of US$127 million in the prior quarter, largely reflecting continued improvement in credit conditions. 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 -0.15%, higher by 3 bps.

      Non-interest expenses for the quarter increased US$55 million, or 4%, compared with the prior quarter, reflecting higher marketing expenses and investments in the business coupled with higher incentive compensation costs.

      Income taxes reflect a provision of US$89 million compared to a provision of US$130 million in the prior quarter, a decrease of US$41 million, primarily reflecting changes to the estimated liability for uncertain tax positions.

      The efficiency ratio for the quarter was 58.2%, compared with 56.6%, in the prior quarter.

      TABLE 11: WHOLESALE BANKING










      (millions of Canadian dollars, except as noted)


      For the three months ended 



      October 31


      July 31


      October 31



      2021


      2021


      2020


      Net interest income (TEB)

      $

      689


      $

      632


      $

      609


      Non-interest income


      461



      451



      645


      Total revenue


      1,150



      1,083



      1,254


      Provision for (recovery of) credit losses – impaired


      (14)



      –



      (19)


      Provision for (recovery of) credit losses – performing


      (63)



      2



      13


      Total provision for (recovery of) credit losses


      (77)



      2



      (6)


      Non-interest expenses


      658



      635



      581


      Provision for (recovery of) income taxes (TEB)


      149



      116



      193


      Net income

      $

      420


      $

      330


      $

      486












      Selected volumes and ratios










      Trading-related revenue (TEB)1

      $

      510


      $

      467


      $

      761


      Average gross lending portfolio (billions of Canadian dollars)2


      58.1



      59.9



      61.0


      Return on common equity3


      18.6

      %


      15.7

      %


      23.0

      %

      Efficiency ratio


      57.2



      58.6



      46.3


      Average number of full-time equivalent staff


      4,910



      4,839



      4,659


      1

      Trading-related revenue (TEB) is part of the total Bank's trading-related revenue (TEB) disclosed in Table 10 in the 2021 MD&A, and is a non-GAAP financial measure. Refer to "Non-GAAP and Other Financial Measures" in the "How We Performed" section and the Glossary in the 2021 MD&A, which is incorporated by reference, for additional information about this metric.

      2

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

      3  

      Capital allocated to the business segment was 9% CET1 Capital.

      Quarterly comparison – Q4 2021 vs. Q4 2020
      Wholesale Banking net income for the quarter was $420 million, a decrease of $66 million, or 14%, compared with the fourth quarter last year, reflecting lower revenue and higher non-interest expenses, partially offset by lower PCL.

      Wholesale Banking revenue is derived primarily from capital markets and corporate and investment banking services provided to corporate, government, and institutional clients. Wholesale Banking generates revenue from corporate lending, advisory, underwriting, sales, trading and research, client securitization, trade finance, cash management, prime services, and trade execution services. Revenue for the quarter was $1,150 million, a decrease of $104 million, or 8%, compared with the fourth quarter last year, primarily reflecting lower trading-related revenue, partially offset by higher lending revenue, advisory fees, and equity underwriting.

      PCL for the quarter was a recovery of $77 million, compared with a recovery of $6 million in the fourth quarter last year. PCL – impaired was a recovery of $14 million. PCL – performing was a recovery of $63 million, lower by $76 million, primarily reflecting an allowance release this quarter related to improved credit conditions.

      Non-interest expenses were $658 million, an increase of $77 million, or 13%, compared with the fourth quarter last year, primarily reflecting higher employee-related costs from continued investment in Wholesale Banking's U.S. dollar strategy and higher variable compensation.

      Quarterly comparison – Q4 2021 vs. Q3 2021
      Wholesale Banking net income for the quarter increased $90 million, or 27%, compared with the prior quarter, reflecting higher revenue and lower PCL, partially offset by higher non-interest expenses.

      Revenue for the quarter increased $67 million, or 6%, primarily reflecting higher trading-related revenue, lending revenue, and advisory fees.

      PCL for the quarter was a recovery of $77 million, lower by $79 million compared with the prior quarter. PCL – impaired was a recovery of $14 million. PCL – performing was a recovery of $63 million, lower by $65 million, largely reflecting improved credit conditions.

      Non-interest expenses for the quarter increased $23 million, or 4%, reflecting higher technology infrastructure, software, and development costs.

      TABLE 12: CORPORATE








      (millions of Canadian dollars)

      For the three months ended 



      October 31

      July 31

      October 31



      2021

      2021

      2020


      Net income (loss) – reported

      $

      (150)

      $

      (205)

      $

      1,984


      Adjustments for items of note








      Amortization of acquired intangibles before income taxes


      74


      68


      61


      Acquisition and integration charges related to the Schwab transaction


      22


      24


      –


      Net gain on sale of the investment in TD Ameritrade


      –


      –


      (1,421)


      Less: impact of income taxes


      11


      9


      837


      Net income (loss) – adjusted1

      $

      (65)

      $

      (122)

      $

      (213)










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








      Net corporate expenses2

      $

      (202)

      $

      (169)

      $

      (302)


      Other


      137


      47


      89


      Net income (loss) – adjusted1

      $

      (65)

      $

      (122)

      $

      (213)










      Selected volumes








      Average number of full-time equivalent staff


      17,772


      17,657


      17,849


      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 2021 MD&A, which is incorporated by reference.

      Quarterly comparison – Q4 2021 vs. Q4 2020
      Corporate segment's reported net loss for the quarter was $150 million, compared with reported net income of $1,984 million in the fourth quarter last year. The year-over-year decrease was primarily attributable to a net gain on sale of the Bank's investment in TD Ameritrade of $1,421 million ($2,250 million after-tax) in the prior year, partially offset by lower net corporate expenses and a higher contribution from other items. The decrease in net corporate expenses largely reflects $163 million ($121 million after-tax) in corporate real estate optimization costs in the prior year. The increase in other items primarily reflects higher revenue from treasury and balance sheet management activities this quarter. The adjusted net loss for the quarter was $65 million, compared with an adjusted net loss of $213 million in the fourth quarter last year.

      Quarterly comparison – Q4 2021 vs. Q3 2021
      Corporate segment's reported net loss for the quarter was $150 million, compared with a reported net loss of $205 million in the prior quarter. The quarter-over-quarter decrease reflects a higher contribution from other items, partially offset by higher net corporate expenses. The increase in other items primarily reflects higher revenue from treasury and balance sheet management activities this quarter. Net corporate expenses increased $33 million compared to the prior quarter. The adjusted net loss for the quarter was $65 million, compared with an adjusted net loss of $122 million in the prior quarter.

      CONSOLIDATED FINANCIAL STATEMENTS

      CONSOLIDATED BALANCE SHEET1





      (millions of Canadian dollars)




      As at


      October 31

      October 31



      2021


      2020

      ASSETS



      Cash and due from banks

      $

      5,931

      $

      6,445

      Interest-bearing deposits with banks


      159,962


      164,149



      165,893


      170,594

      Trading loans, securities, and other


      147,590


      148,318

      Non-trading financial assets at fair value through profit or loss


      9,390


      8,548

      Derivatives


      54,427


      54,242

      Financial assets designated at fair value through profit or loss


      4,564


      4,739

      Financial assets at fair value through other comprehensive income


      79,066


      103,285



      295,037


      319,132

      Debt securities at amortized cost, net of allowance for credit losses


      268,939


      227,679

      Securities purchased under reverse repurchase agreements


      167,284


      169,162

      Loans





      Residential mortgages


      268,340


      252,219

      Consumer instalment and other personal


      189,864


      185,460

      Credit card


      30,738


      32,334

      Business and government


      240,070


      255,799



      729,012


      725,812

      Allowance for loan losses


      (6,390)


      (8,289)

      Loans, net of allowance for loan losses


      722,622


      717,523

      Other





      Customers' liability under acceptances


      18,448


      14,941

      Investment in Schwab


      11,112


      12,174

      Goodwill


      16,232


      17,148

      Other intangibles


      2,123


      2,125

      Land, buildings, equipment, and other depreciable assets


      9,181


      10,136

      Deferred tax assets


      2,265


      2,444

      Amounts receivable from brokers, dealers, and clients


      32,357


      33,951

      Other assets


      17,179


      18,856



      108,897


      111,775

      Total assets

      $

      1,728,672

      $

      1,715,865

      LIABILITIES





      Trading deposits

      $

      22,891

      $

      19,177

      Derivatives


      57,122


      53,203

      Securitization liabilities at fair value


      13,505


      13,718

      Financial liabilities designated at fair value through profit or loss


      113,988


      59,665



      207,506


      145,763

      Deposits





      Personal


      633,498


      625,200

      Banks


      20,917


      28,969

      Business and government


      470,710


      481,164



      1,125,125


      1,135,333

      Other





      Acceptances


      18,448


      14,941

      Obligations related to securities sold short


      42,384


      34,999

      Obligations related to securities sold under repurchase agreements


      144,097


      188,876

      Securitization liabilities at amortized cost


      15,262


      15,768

      Amounts payable to brokers, dealers, and clients


      28,993


      35,143

      Insurance-related liabilities


      7,676


      7,590

      Other liabilities


      28,133


      30,476



      284,993


      327,793

      Subordinated notes and debentures


      11,230


      11,477

      Total liabilities


      1,628,854


      1,620,366

      EQUITY





      Shareholders' Equity





      Common shares


      23,066


      22,487

      Preferred shares and other equity instruments


      5,700


      5,650

      Treasury – common shares


      (152)


      (37)

      Treasury – preferred shares and other equity instruments


      (10)


      (4)

      Contributed surplus


      173


      121

      Retained earnings


      63,944


      53,845

      Accumulated other comprehensive income (loss)


      7,097


      13,437

      Total equity


      99,818


      95,499

      Total liabilities and equity

      $

      1,728,672

      $

      1,715,865

      1

      The amounts as at October 31, 2021 and October 31, 2020, have been derived from the audited financial statements.

      CONSOLIDATED STATEMENT OF INCOME1,2









      (millions of Canadian dollars, except as noted)

      For the three months ended

      For the twelve months ended



      October 31

      October 31

      October 31

      October 31


      2021

      2020

      2021

      2020

      Interest income3









      Loans

      $

      6,009

      $

      6,339

      $

      23,959

      $

      28,337

      Securities










      Interest


      960


      1,013


      3,721


      5,432


      Dividends


      394


      403


      1,594


      1,714

      Deposits with banks


      76


      70


      307


      350



      7,439


      7,825


      29,581


      35,833

      Interest expense









      Deposits


      776


      1,286


      3,742


      8,447

      Securitization liabilities


      88


      75


      343


      379

      Subordinated notes and debentures


      93


      100


      374


      426

      Other


      220


      337


      991


      2,084



      1,177


      1,798


      5,450


      11,336

      Net interest income


      6,262


      6,027


      24,131


      24,497

      Non-interest income









      Investment and securities services


      1,565


      1,341


      6,179


      5,341

      Credit fees


      374


      354


      1,453


      1,400

      Net securities gain (loss)


      11


      32


      14


      40

      Trading income (loss)


      (12)


      246


      313


      1,404

      Income (loss) from non-trading financial instruments at fair value through profit or loss


      44


      11


      228


      14

      Income (loss) from financial instruments designated at fair value through profit or loss


      (156)


      (27)


      (401)


      55

      Service charges


      711


      633


      2,655


      2,593

      Card services


      651


      566


      2,435


      2,154

      Insurance revenue


      1,248


      1,130


      4,877


      4,565

      Other income (loss)


      243


      1,531


      809


      1,583



      4,679


      5,817


      18,562


      19,149

      Total revenue


      10,941


      11,844


      42,693


      43,646

      Provision for (recovery of) credit losses


      (123)


      917


      (224)


      7,242

      Insurance claims and related expenses


      650


      630


      2,707


      2,886

      Non-interest expenses









      Salaries and employee benefits


      3,051


      2,882


      12,378


      11,893

      Occupancy, including depreciation


      440


      640


      1,882


      1,990

      Technology and equipment, including depreciation


      449


      442


      1,694


      1,634

      Amortization of other intangibles


      179


      207


      706


      817

      Communication and marketing


      378


      338


      1,203


      1,187

      Restructuring charges (recovery)


      1


      (8)


      47


      (16)

      Brokerage-related and sub-advisory fees


      112


      94


      427


      362

      Professional, advisory and outside services


      568


      435


      1,620


      1,451

      Other


      769


      679


      3,119


      2,286



      5,947


      5,709


      23,076


      21,604

      Income before income taxes and share of net income from investment










       in Schwab and TD Ameritrade


      4,467


      4,588


      17,134


      11,914

      Provision for (recovery of) income taxes


      910


      (202)


      3,621


      1,152

      Share of net income from investment in Schwab and TD Ameritrade


      224


      353


      785


      1,133

      Net income


      3,781


      5,143


      14,298


      11,895

      Preferred dividends and distributions on other equity instruments


      63


      64


      249


      267

      Net income available to common shareholders

      $

      3,718

      $

      5,079

      $

      14,049

      $

      11,628

      Earnings per share (Canadian dollars)









      Basic

      $

      2.04

      $

      2.80

      $

      7.73

      $

      6.43

      Diluted


      2.04


      2.80


      7.72


      6.43

      Dividends per common share (Canadian dollars)


      0.79


      0.79


      3.16


      3.11

      1

      Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

      2

      The amounts for the three months ended October 31, 2021, and October 31, 2020, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2021 and October 31, 2020, have been derived from the audited financial statements.

      3  

      Includes $6,535 million and $26,217 million, for the three and twelve months ended October 31, 2021, respectively (three and twelve months ended October 31, 2020 – $8,766 million and $32,476 million, respectively) which have been calculated based on the effective interest rate method.

      CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME1,2,3









      (millions of Canadian dollars)

      For the three months ended

      For the twelve months ended




      October 31

      October 31

      October 31

      October 31




      2021

      2020

      2021

      2020

      Net income

      $

      3,781

      $

      5,143

      $

      14,298

      $

      11,895

      Other comprehensive income (loss), net of income taxes









      Items that will be subsequently reclassified to net income










      Net change in unrealized gains (losses) on financial assets at fair value through











      other comprehensive income










      Change in unrealized gains (losses)


      (94)


      69


      25


      257


      Reclassification to earnings of net losses (gains)


      (9)


      (2)


      (59)


      (6)


      Changes in allowance for credit losses recognized in earnings


      3


      1


      1


      2





      (100)


      68


      (33)


      253


      Net change in unrealized foreign currency translation gains (losses) on











      Investments in foreign operations, net of hedging activities










      Unrealized gains (losses)


      (699)


      (441)


      (6,082)


      855


      Reclassification to earnings of net losses (gains)


      –


      (1,531)


      –


      (1,531)


      Net gains (losses) on hedges


      230


      140


      1,955


      (291)


      Reclassification to earnings of net losses (gains) on hedges


      –


      1,531


      –


      1,531





      (469)


      (301)


      (4,127)


      564


      Net change in gains (losses) on derivatives designated as cash flow hedges










      Change in gains (losses)


      (1,498)


      (379)


      (2,411)


      3,565


      Reclassification to earnings of losses (gains)


      144


      (168)


      515


      (1,236)





      (1,354)


      (547)


      (1,896)


      2,329


      Share of other comprehensive income (loss) from investment in Schwab and TD Ameritrade


      (198)


      (86)


      (768)


      (27)

      Items that will not be subsequently reclassified to net income









      Actuarial gains (losses) on employee benefit plans


      487


      278


      1,787


      (390)

      Change in net unrealized gains (losses) on equity securities designated at fair value through










      other comprehensive income


      40


      (22)


      433


      (212)

      Gains (losses) from changes in fair value due to credit risk on financial liabilities designated










      at fair value through profit or loss


      14


      18


      51


      (51)





      541


      274


      2,271


      (653)

      Total other comprehensive income (loss), net of income taxes


      (1,580)


      (592)


      (4,553)


      2,466

      Total comprehensive income (loss), net of income taxes

      $

      2,201

      $

      4,551

      $

      9,745

      $

      14,361

      Attributable to:










      Common shareholders

      $

      2,138

      $

      4,487

      $

      9,496

      $

      14,094


      Preferred shareholders and other equity instrument holders


      63


      64


      249


      267

      1 

      Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

      2 

      The amounts for the three months ended October 31, 2021, and October 31, 2020, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2021 and October 31, 2020, have been derived from the audited financial statements.

      3 

      The amounts are net of income tax provisions (recoveries) presented in the following table.

      Income Tax Provisions (Recoveries) in the Consolidated Statement of Comprehensive Income1,2





      (millions of Canadian dollars)

      For the three months ended

      For the twelve months ended



      October 31

      October 31

      October 31

      October 31




      2021


      2020


      2021


      2020

      Change in unrealized gains (losses) on financial assets at fair value through










      other comprehensive income

      $

      (30)

      $

      (6)

      $

      2

      $

      78

      Less: Reclassification to earnings of net losses (gains) in respect of financial assets at fair value










      through other comprehensive income


      2


      1


      16


      1

      Changes in allowance for credit losses on financial assets at fair value through other comprehensive










      comprehensive income recognized in earnings


      –


      –


      –


      1

      Net gains (losses) on hedges of investments in foreign operations


      82


      52


      693


      (102)

      Less: Reclassification to earnings of net losses (gains) on hedges of investments in foreign










      operations


      –


      (545)


      –


      (545)

      Change in gains (losses) on derivatives designated as cash flow hedges


      (518)


      (540)


      (761)


      947

      Less: Reclassification to earnings of losses (gains) on cash flow hedges


      (41)


      (368)


      (92)


      121

      Actuarial gains (losses) on employee benefit plans


      172


      98


      635


      (140)

      Change in net unrealized gains (losses) on equity securities designated at fair value










      through other comprehensive income


      15


      (8)


      154


      (78)

      Gains (losses) from changes in fair value due to credit risk on financial liabilities designated










      at fair value through profit or loss


      5


      7


      18


      (18)

      Total income taxes

      $

      (235)

      $

      515

      $

      817

      $

      1,111

      1 

      Certain comparative amounts have been restated to conform with the presentation adopted in the current period.

      2 

      The amounts for the three months ended October 31, 2021, and October 31, 2020, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2021 and October 31, 2020, have been derived from the audited financial statements.

      CONSOLIDATED STATEMENT OF CHANGES IN EQUITY1,2

      (millions of Canadian dollars)

      For the three months ended

      For the twelve months ended


      October 31

      October 31

      October 31

      October 31


      2021

      2020

      2021

      2020

      Common shares









      Balance at beginning of period

      $

      22,945

      $

      22,361

      $

      22,487

      $

      21,713

      Proceeds from shares issued on exercise of stock options


      19


      14


      165


      79

      Shares issued as a result of dividend reinvestment plan


      102


      112


      414


      838

      Purchase of shares for cancellation and other


      –


      –


      –


      (143)

      Balance at end of period


      23,066


      22,487


      23,066


      22,487

      Preferred shares and other equity instruments









      Balance at beginning of period


      6,700


      5,800


      5,650


      5,800

      Issue of shares and other equity instruments


      –


      –


      1,750


      –

      Redemption of shares and other equity instruments


      (1,000)


      (150)


      (1,700)


      (150)

      Balance at end of period


      5,700


      5,650


      5,700


      5,650

      Treasury – common shares









      Balance at beginning of period


      (189)


      (59)


      (37)


      (41)

      Purchase of shares


      (2,461)


      (1,965)


      (10,859)


      (8,752)

      Sale of shares


      2,498


      1,987


      10,744


      8,756

      Balance at end of period


      (152)


      (37)


      (152)


      (37)

      Treasury – preferred shares and other equity instruments









      Balance at beginning of period


      (5)


      (5)


      (4)


      (6)

      Purchase of shares and other equity instruments


      (98)


      (24)


      (205)


      (122)

      Sale of shares and other equity instruments


      93


      25


      199


      124

      Balance at end of period


      (10)


      (4)


      (10)


      (4)

      Contributed surplus









      Balance at beginning of period


      125


      128


      121


      157

      Net premium (discount) on sale of treasury instruments


      5


      –


      –


      (31)

      Issuance of stock options, net of options exercised


      3


      –


      6


      –

      Other


      40


      (7)


      46


      (5)

      Balance at end of period


      173


      121


      173


      121

      Retained earnings









      Balance at beginning of period


      61,167


      49,934


      53,845


      49,497

      Impact on adoption of IFRS 16, Leases


      n/a3


      n/a


      n/a


      (553)

      Net income attributable to equity instrument holders


      3,781


      5,143


      14,298


      11,895

      Common dividends


      (1,437)


      (1,431)


      (5,741)


      (5,614)

      Preferred dividends and distributions on other equity instruments


      (63)


      (64)


      (249)


      (267)

      Net premium on repurchase of common shares and redemption of preferred shares and other equity instruments


      –


      (6)


      (1)


      (710)

      Share and other equity instrument issue expenses


      –


      –


      (5)


      –

      Actuarial gains (losses) on employee benefit plans


      487


      278


      1,787


      (390)

      Realized gains (losses) on equity securities designated at fair value through other comprehensive income


      9


      (9)


      10


      (13)

      Balance at end of period


      63,944


      53,845


      63,944


      53,845

      Accumulated other comprehensive income (loss)









      Net unrealized gain (loss) on financial assets at fair value through other comprehensive income:









      Balance at beginning of period


      610


      475


      543


      290

      Other comprehensive income (loss)


      (103)


      67


      (34)


      251

      Allowance for credit losses


      3


      1


      1


      2

      Balance at end of period


      510


      543


      510


      543

      Net unrealized gain (loss) on equity securities designated at fair value through other comprehensive income:









      Balance at beginning of period


      141


      (230)


      (252)


      (40)

      Other comprehensive income (loss)


      49


      (31)


      443


      (225)

      Reclassification of loss (gain) to retained earnings


      (9)


      9


      (10)


      13

      Balance at end of period


      181


      (252)


      181


      (252)

      Gain (loss) from changes in fair value due to credit risk on financial liabilities designated at fair value through










      profit or loss:









      Balance at beginning of period


      –


      (55)


      (37)


      14

      Other comprehensive income (loss)


      14


      18


      51


      (51)

      Balance at end of period


      14


      (37)


      14


      (37)

      Net unrealized foreign currency translation gain (loss) on investments in foreign operations, net of hedging activities:









      Balance at beginning of period


      5,699


      9,658


      9,357


      8,793

      Other comprehensive income (loss)


      (469)


      (301)


      (4,127)


      564

      Balance at end of period


      5,230


      9,357


      5,230


      9,357

      Net gain (loss) on derivatives designated as cash flow hedges:









      Balance at beginning of period


      3,284


      4,373


      3,826


      1,497

      Other comprehensive income (loss)


      (1,354)


      (547)


      (1,896)


      2,329

      Balance at end of period


      1,930


      3,826


      1,930


      3,826

      Share of accumulated other comprehensive income (loss) from Investment in Schwab and TD Ameritrade


      (768)


      –


      (768)


      –

      Total accumulated other comprehensive income


      7,097


      13,437


      7,097


      13,437

      Total equity

      $

      99,818

      $

      95,499

      $

      99,818

      $

      95,499

      1 

      Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

      2 

      The amounts for the three months ended October 31, 2021, and October 31, 2020, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2021 and October 31, 2020, have been derived from the audited financial statements.

      3 

      Not applicable.

      CONSOLIDATED STATEMENT OF CASH FLOWS1,2









      (millions of Canadian dollars)

      For the three months ended

      For the twelve months ended



      October 31

      October 31

      October 31

      October 31



      2021

      2020

      2021

      2020

      Cash flows from (used in) operating activities









      Net income

      $

      3,781

      $

      5,143

      $

      14,298

      $

      11,895

      Adjustments to determine net cash flows from (used in) operating activities










      Provision for (recovery of) credit losses


      (123)


      917


      (224)


      7,242


      Depreciation


      296


      429


      1,360


      1,324


      Amortization of other intangibles


      179


      207


      706


      817


      Net securities losses (gains)


      (11)


      (32)


      (14)


      (40)


      Share of net income from investment in Schwab and TD Ameritrade


      (224)


      (353)


      (785)


      (1,133)


      Net gain on sale of the investment in TD Ameritrade


      –


      (1,491)


      –


      (1,491)


      Deferred taxes


      99


      (435)


      258


      (1,065)

      Changes in operating assets and liabilities










      Interest receivable and payable


      (30)


      27


      (288)


      (108)


      Securities sold under repurchase agreements


      (11,766)


      16,995


      (44,779)


      63,020


      Securities purchased under reverse repurchase agreements


      (5,130)


      (9,490)


      1,878


      (3,227)


      Securities sold short


      5,661


      1,216


      7,030


      5,343


      Trading loans and securities


      (152)


      (3,547)


      1,177


      (2,318)


      Loans net of securitization and sales


      (3,314)


      3,012


      (3,660)


      (39,641)


      Deposits


      (110)


      41,114


      (6,494)


      240,648


      Derivatives


      1,722


      (4,404)


      3,734


      (2,196)


      Non-trading financial assets at fair value through profit or loss


      (138)


      2,127


      (842)


      (2,045)


      Financial assets and liabilities designated at fair value through profit or loss


      21,701


      (39,028)


      54,498


      (46,165)


      Securitization liabilities


      (138)


      991


      (719)


      2,342


      Current taxes


      (682)


      82


      239


      280


      Brokers, dealers and clients amounts receivable and payable


      (3,968)


      3,745


      (4,592)


      (1,979)


      Other, including unrealized foreign currency translation (gains) losses


      6,472


      3,735


      27,348


      (1,896)

      Net cash from (used in) operating activities


      14,125


      20,960


      50,129


      229,607

      Cash flows from (used in) financing activities









      Issuance of subordinated notes and debentures


      –


      –


      –


      3,000

      Redemption or repurchase of subordinated notes and debentures


      (11)


      (968)


      (7)


      (2,530)

      Common shares issued, net


      17


      12


      145


      68

      Preferred shares and other equity instruments issued


      –


      –


      1,745


      –

      Repurchase of common shares


      –


      –


      –


      (847)

      Redemption of preferred shares and other equity instruments


      –


      (156)


      (700)


      (156)

      Sale of treasury shares and other equity instruments


      2,596


      2,012


      10,943


      8,849

      Purchase of treasury shares and other equity instruments


      (2,559)


      (1,989)


      (11,064)


      (8,874)

      Dividends paid on shares and distributions paid on other equity instruments


      (1,387)


      –


      (5,555)


      (3,660)

      Repayment of lease liabilities 


      (102)


      (155)


      (543)


      (596)

      Net cash from (used in) financing activities


      (1,446)


      (1,244)


      (5,036)


      (4,746)

      Cash flows from (used in) investing activities









      Interest-bearing deposits with banks


      6,967


      (2,792)


      (729)


      (138,266)

      Activities in financial assets at fair value through other comprehensive income










      Purchases


      (5,526)


      (4,927)


      (21,056)


      (50,569)


      Proceeds from maturities


      6,631


      16,165


      33,541


      49,684


      Proceeds from sales


      2,594


      2,252


      5,363


      11,005

      Activities in debt securities at amortized cost










      Purchases


      (36,360)


      (53,552)


      (153,896)


      (146,703)


      Proceeds from maturities


      12,888


      23,530


      92,131


      51,400


      Proceeds from sales


      652


      981


      2,365


      1,391

      Net purchases of land, buildings, equipment, other depreciable assets, and other intangibles


      (358)


      (320)


      (1,129)


      (1,261)

      Net cash acquired from (paid for) divestitures and acquisitions


      –


      –


      (1,858)


      –

      Net cash from (used in) investing activities


      (12,512)


      (18,663)


      (45,268)


      (223,319)

      Effect of exchange rate changes on cash and due from banks


      (53)


      (18)


      (339)


      40

      Net increase (decrease) in cash and due from banks


      114


      1,035


      (514)


      1,582

      Cash and due from banks at beginning of period


      5,817


      5,410


      6,445


      4,863

      Cash and due from banks at end of period

      $

      5,931

      $

      6,445

      $

      5,931

      $

      6,445

      Supplementary disclosure of cash flows from operating activities









      Amount of income taxes paid (refunded) during the period

      $

      1,590

      $

      743

      $

      4,071

      $

      2,285

      Amount of interest paid during the period


      1,136


      1,710


      5,878


      11,587

      Amount of interest received during the period


      6,974


      7,360


      28,127


      34,262

      Amount of dividends received during the period


      385


      380


      1,614


      1,675

      1

      Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

      2 

      The amounts for the three months ended October 31, 2021, and October 31, 2020, have been derived from unaudited financial statements. The amounts for the twelve months ended October 31, 2021 and October 31, 2020, have been derived from the audited financial statements.

      Appendix A – Segmented Information
      For management reporting purposes, the Bank reports its results under three key business segments: Canadian Retail, which includes the results of the Canadian personal and commercial banking businesses, Canadian credit cards, TD Auto Finance Canada and Canadian wealth and insurance businesses; U.S. Retail, which includes the results of the U.S. personal and commercial banking businesses, U.S. credit cards, TD Auto Finance U.S., U.S. wealth business, and the Bank's investment in Schwab; and Wholesale Banking. The Bank's other activities are grouped into the Corporate segment.

      Results for these segments for the three and twelve months ended October 31, 2021 and October 31, 2020 are presented in the following tables.

      Results by Business Segment1,2,3

















      (millions of Canadian dollars)























      Canadian Retail 

      U.S. Retail

      Wholesale Banking4

      Corporate4

      Total





      For the three months ended October 31




      2021


      2020


      2021


      2020


      2021


      2020


      2021


      2020


      2021


      2020

      Net interest income (loss)

      $

      3,062

      $

      2,982

      $

      2,103

      $

      2,071

      $

      689

      $

      609

      $

      408

      $

      365

      $

      6,262

      $

      6,027

      Non-interest income (loss) 


      3,458


      3,047


      677


      646


      461


      645


      83


      1,479


      4,679


      5,817

      Total revenue 


      6,520


      6,029


      2,780


      2,717


      1,150


      1,254


      491


      1,844


      10,941


      11,844

      Provision for (recovery of) credit losses


      53


      251


      (76)


      572


      (77)


      (6)


      (23)


      100


      (123)


      917

      Insurance claims and related expenses


      650


      630


      –


      –


      –


      –


      –


      –


      650


      630

      Non-interest expenses


      2,912


      2,684


      1,617


      1,660


      658


      581


      760


      784


      5,947


      5,709

      Income (loss) before income taxes






















      and share of net income from






















      investment in Schwab and






















      TD Ameritrade


      2,905


      2,464


      1,239


      485


      569


      679


      (246)


      960


      4,467


      4,588

      Provision for (recovery of) income taxes


      768


      662


      111


      (47)


      149


      193


      (118)


      (1,010)


      910


      (202)

      Share of net income from investment in






















      Schwab and TD Ameritrade5,6


      –


      –


      246


      339


      –


      –


      (22)


      14


      224


      353

      Net income (loss)

      $

      2,137

      $

      1,802

      $

      1,374

      $

      871

      $

      420

      $

      486

      $

      (150)

      $

      1,984

      $

      3,781

      $

      5,143





























      For the twelve months ended October 31




      2021


      2020


      2021


      2020


      2021


      2020


      2021


      2020


      2021


      2020

      Net interest income (loss)

      $

      11,957

      $

      12,061

      $

      8,074

      $

      8,834

      $

      2,630

      $

      1,990

      $

      1,470

      $

      1,612

      $

      24,131

      $

      24,497

      Non-interest income (loss) 


      13,549


      12,272


      2,684


      2,438


      2,070


      2,968


      259


      1,471


      18,562


      19,149

      Total revenue 


      25,506


      24,333


      10,758


      11,272


      4,700


      4,958


      1,729


      3,083


      42,693


      43,646

      Provision for (recovery of) credit losses


      258


      2,746


      (250)


      2,925


      (118)


      508


      (114)


      1,063


      (224)


      7,242

      Insurance claims and related expenses


      2,707


      2,886


      –


      –


      –


      –


      –


      –


      2,707


      2,886

      Non-interest expenses


      11,003


      10,441


      6,417


      6,579


      2,709


      2,518


      2,947


      2,066


      23,076


      21,604

      Income (loss) before income taxes






















      and share of net income from






















      investment in Schwab and






















      TD Ameritrade


      11,538


      8,260


      4,591


      1,768


      2,109


      1,932


      (1,104)


      (46)


      17,134


      11,914

      Provision for (recovery of) income taxes


      3,057


      2,234


      504


      (167)


      539


      514


      (479)


      (1,429)


      3,621


      1,152

      Share of net income from investment in






















      Schwab and TD Ameritrade5,6


      –


      –


      898


      1,091


      –


      –


      (113)


      42


      785


      1,133

      Net income (loss)

      $

      8,481

      $

      6,026

      $

      4,985

      $

      3,026

      $

      1,570

      $

      1,418

      $

      (738)

      $

      1,425

      $

      14,298

      $

      11,895






























      As at October 31




      2021


      2020


      2021


      2020


      2021


      2020


      2021


      2020


      2021


      2020

      Total assets7

      $

      509,436

      $

      472,370

      $

      559,503

      $

      566,629

      $

      514,681

      $

      512,886

      $

      145,052

      $

      163,980

      $

      1,728,672

      $

      1,715,865

      1 

      Certain comparative amounts have been reclassified to conform with the presentation adopted in the current period.

      2 

      The amounts for the three months ended October 31, 2021 and October 31, 2020 have been derived from the unaudited financial statements. The amounts for the twelve months ended October 31, 2021 and October 31, 2020 have been derived from the audited financial statements.

      3 

      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 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 the Bank under the agreements.

      4 

      Net interest income within Wholesale Banking is calculated on a TEB. The TEB adjustment reflected in Wholesale Banking is reversed in the Corporate segment.

      5 

      The after-tax amounts for amortization of acquired intangibles and the Bank's share of acquisition and integration charges associated with Schwab's acquisition of TD Ameritrade are recorded in the Corporate segment.

      6 

      The Bank's share of Schwab's and TD Ameritrade's earnings is reported with a one-month lag. Refer to Note 12 for further details.

      7 

      Total assets as at October 31, 2021 and October 31, 2020 have been derived from the audited financial statements.

      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:
      TMX Trust Company
      P.O. Box 700, Station B
      Montréal, Québec H3B 3K3
      1-800-387-0825 (Canada and U.S. only)
      or 416-682-3860
      Facsimile: 1-888-249-6189
      [email protected] or
      www.astfinancial.com/ca-en  

      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
      P.O. Box 505000
      Louisville, KY 40233
      or
      Computershare
      462 South 4th Street, Suite 1600
      Louisville, KY 40202
      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
      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 [email protected]. 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.

      Annual Report on Form 40-F (U.S.)
      A copy of the Bank's Annual Report on Form 40-F for fiscal 2021 will be filed with the Securities and Exchange Commission later today and will be available at http://www.td.com. You may obtain a printed copy of the Bank's Annual Report on Form 40-F for fiscal 2021 free of charge upon request to TD Shareholder Relations at 416-944-6367 or 1-866-756-8936 or e-mail [email protected].

      Access to Quarterly Results Materials
      Interested investors, the media, and others may view this fourth quarter earnings news release, results slides, supplementary financial information, supplemental regulatory disclosure, and the 2021 Consolidated Financial Statements and MD&A documents on the TD website at www.td.com/investor/.

      General Information
      Products and services: Contact TD Canada Trust, 24 hours a day, seven days a week: 1-866-567-8888 French: 1-866-233-2323
      Cantonese/Mandarin: 1-800-328-3698
      Telephone device for the hearing impaired (TTY): 1-800-361-1180

      Website: www.td.com
      Email: [email protected]

      Media contacts: https://stories.td.com/media-contacts

      Quarterly Earnings Conference Call
      TD Bank Group will host an earnings conference call in Toronto, Ontario on December 2, 2021. The call will be available live via TD's website at 1:30 p.m. ET. The call and audio webcast will feature presentations by TD executives on the Bank's financial results for the fourth quarter, 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 December 2, 2021 before 1:30 p.m. ET. 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 December 2, 2021, until 11:59 p.m. ET on December 17, 2021 by calling 905-694-9451 or 1-800-408-3053 (toll free). The passcode is 7300743#.

      Annual Meeting
      Thursday, April 14, 2022
      Toronto, Ontario
      Record Date for Notice and Voting:
      February 14, 2022

      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 fifth largest bank in North America by assets and serves over 26 million customers in three key businesses operating in a number of locations in financial centres around the globe: Canadian Retail, including TD Canada Trust, TD Auto Finance Canada, TD Wealth (Canada), TD Direct Investing, and TD Insurance; 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; and Wholesale Banking, including TD Securities. TD also ranks among the world's leading online financial services firms, with more than 15 million active online and mobile customers. TD had CDN$1.7 trillion in assets on October 31, 2021. The Toronto-Dominion Bank trades under the symbol "TD" on the Toronto and New York Stock Exchanges.

      SOURCE TD Bank Group

      Gillian Manning, Head of Investor Relations, 416-308-6014; Lynsey Wynberg, Senior Manager, Media Relations, 416-756-8391

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