TD Bank Financial Group 147th Annual Report 2002 Close Window Button
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Management's discussion and analysis of operating performance

Achieving a new high in customer satisfaction, as measured by our Retail Branch Customer Satisfaction Index.

TD Canada Trust

Overall business strategy

  • Establish a superior brand-based customer experience built on delivering best-in-class service.
  • Leverage exceptional service and large customer base to achieve superior financial results through:
    • lower than average customer attrition rates.
    • economies of scale to achieve low cost production.
    • growth in revenues from under-penetrated businesses.
    • increased share of business from current customers.

Challenges in 2002

  • Integration execution issues that affected our customer satisfaction during the first half of the year.
  • Impact of the branch merger program on volume growth and market share.
  • Post-conversion payment collection and processing issues increased credit losses during the first half of the year but were resolved by the end of the second quarter.

2002 Highlights

  • Achieving a new high in customer satisfaction, as measured by our Retail Branch Customer Satisfaction Index (CSI), following the resolution of the key post-conversion integration issues.
  • Meeting our branch merger targets by completing 146 branch mergers in the year and 238 mergers since the acquisition of Canada Trust. With the program 91% complete, we have achieved significant expense synergies while increasing average branch hours.
  • Building a better bank by investing in systems and processes to support our customer service model while maintaining tight control on expenses.

Business outlook and focus for 2003

  • Improve revenue growth:
    • expect growth in overall industry volumes in the
      3% to 5% range.
    • have set targets to improve market share based on our customer service strategy.
    • higher growth in small business banking and commercial banking.
    • higher growth in insurance – both home and auto insurance offered by TD Meloche Monnex and creditor and life insurance.
  • Keep expense growth less than revenue growth:
    • tight expense management.
    • realize remaining integration synergies.
    • improve systems and processes in support of customer service model.
  • Efficiency ratio goal is 57.8% for 2003 on an operating cash basis and excluding funding costs related to the Canada Trust acquisition.

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