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TD.comAnnual Report 2012 › CEO's message

Group President and CEO’s Message

Against the backdrop of economic headwinds and an increasingly complex regulatory environment, TD continued to grow and distinguish itself as The Better Bank in 2012. Adjusted earnings exceeding $7 billion represent our best year to date. The roll-out of 65 new retail locations not only expanded our North American footprint, but reinforced our unique leadership position in service and convenience. TD remains one of the strongest and safest banks in world, thanks to the strength of our balance sheet and conservative risk appetite. And, we raised our dividend twice for shareholders in 2012.

Year in review

Our retail businesses continued to drive growth on both sides of the border. Our domestic Personal and Commercial business delivered adjusted earnings of $3.4 billion, largely driven by strong volume growth in personal and business deposits and loans.

Our U.S. franchise surpassed $1.4 billion in adjusted earnings — a feat all the more impressive given the impact of the Durbin Amendment and other regulatory changes on our business. The opening of the 1,300th U.S. store marked a major milestone in TD’s growth story.


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“TD remains one of the strongest and safest banks in the world, thanks to the strength of our balance sheet and conservative risk appetite. And, we raised our dividend twice for shareholders in 2012.”

Our Wealth businesses had an excellent year, continuing to take market share in gathering assets and trading volumes throughout a volatile year. TD Ameritrade also continues to attract new customer assets significantly faster than its competitors and remains an industry leader in trades per day. Our Insurance business exceeded $3 billion in premiums for the third consecutive year.

The performance of our Wholesale bank was strong as our franchise focus produced target profitability returns, positioned us for even stronger performance when markets normalize and provided our clients throughout the bank with an integrated full service offering.

Legendary customer experiences; a unique and inclusive workplace

Our success is underpinned by our unique leadership position in providing a comfortable experience in financial services. Longer hours, better locations and great service are TD hallmarks that enable us to grow and take market share year in and year out.

Mobile and online banking channels present us with new opportunities to lead. Only a year after its launch, our mobile banking app is actively used by more than 1 million customers. We are focused on building a North American leadership position in these channels.

Our relentless focus on the customer continues to separate TD from the competition. TD Canada Trust remains the sole winner in customer satisfaction among the big Canadian banks by J.D. Power & Associates, winning for a seventh consecutive year. We also took the Ipsos Excellence in Customer Service award for the eighth straight year. We are recognized as a leader in the U.S. as well, where we work hard every day to be America’s Most Convenient Bank.

Our accomplishments are made possible by TD’s incredible team of more than 85,000 people. Our focus on creating a unique and inclusive employee culture helps us attract, retain and engage the best. The strength of our employment brand was recognized again in 2012, with TD being named one of Canada’s Top 100 Employers for the sixth year in a row.

Standing by our customers and employees means focusing on the things that matter to them and their communities. On a global basis, TD invested more than $65 million in the many communities it serves, making a positive impact through over 6,000 organizations, on causes such as education and financial literacy, the environment and creating opportunities for young people.

Focused on the future

Looking ahead, we will continue to face a prolonged period of slow economic growth, low interest rates and growing regulatory demands. The housing market is cooling, consumer loan growth is moderating and regulatory uncertainty remains a concern.

To succeed we must aggressively deal with the challenges ahead. This means finding new revenue sources, building a competitive advantage in improving productivity, and proactively getting ahead of regulatory demands by building them into our best-run bank culture.

In doing all this, we must not lose track of what has allowed us to outperform and become an employer of choice: our focus on our customers and the employees who serve them and a determination to preserve our unique, inclusive culture. As past results have demonstrated, what is good for our customers is also good for our shareholders. And our customers are served well when we focus on supporting and celebrating our amazing employees who make it all happen.

I am confident that the resilience of our business model, combined with the capacity of our management team and the dedication of our employees, will not only see TD through these challenging times, but help us sustain our leadership position in the future.

Ed Clark

Group President and Chief Executive Officer