TD announced record reported earnings for the seventh consecutive year driven by growth in our U.S. Retail and Wholesale businesses.
TD common shares reached an all-time high of $61.03 on October 31, 2016. TD also ranked #1 or #2 over the one, three, five and ten year time frames for Total Shareholder Return (TSR) among the Big 5 banks2.
TD raised its quarterly dividend 8% from the previous year and repurchased 9.5 million shares to offset dilution from the Bank’s dividend reinvestment plan and issuances related to stock options.
TD Securities announced an agreement to acquire Albert Fried & Company, a New York based broker-dealer with a prime brokerage technology platform. TD also announced an agreement to acquire Scottrade Bank, in conjunction with TD Ameritrade's agreement to acquire Scottrade's discount brokerage business3.
TD Canada Trust (TDCT) retained the #1 spot in "Customer Service Excellence" among the Big 5 Canadian Banks for the twelfth consecutive year according to Ipsos. In addition, TDCT continued to lead in credit cards and total personal deposit market share and maintained the #2 position for business loan and deposit market share4,5.
TD Wealth delivered double-digit growth and over $1 billion in global earnings and surpassed the $700 billion mark in total assets under management and administration. TD Direct Investing launched the new WebBroker Platform and successfully migrated over 1.5 million clients. The Advice businesses posted record assets and delivered earnings growth of over 25%. TD Asset Management, including Epoch, accumulated record assets under management of over $300 billion.
TD Securities (TDS) achieved net income of $920 million and ROE of 16% in 2016. TDS grew corporate loans by 28%; further expanded its U.S. capabilities and client offerings; maintained top three dealer status in Canada in key product markets; and attained the #1 ranking overall in Thomson Reuters Analyst Awards for equity research6,7.
TD's U.S. Retail segment delivered US$2.2 billion in earnings, up 11% from the prior year, and TD Bank, America's Most Convenient Bank won the J.D. Power U.S. Retail Banking Satisfaction Award for the Florida Region8.
TD Insurance (TDI) continues to enhance its claims handling and industry leading digital quoting and advice capabilities. In 2016, it launched the first one-stop-shop auto claims collision centre in Canada. TDI also raised the bar on customer support during the Fort McMurray wildfires, the costliest natural disaster in Canadian history. TD is ranked first in balance protection for credit cards and second in credit protection insurance among the Big 5 banks9,10,11.
TD ranked first in Canadian mobile banking with the highest number of mobile unique visitors according to Comscore. TD was also recognized for its leadership in customer service excellence among the Big 5 Canadian Banks for automated teller machines (ATM), online and mobile banking according to Ipsos4,12.
TD introduced TD My Spend, a money management app that provides customers with real time insight into their spending. TD also introduced TD for Me. A companion to TD’s Canadian banking app, it provides customers with personalized experiences, offers and reminders. Both are firsts for Canadian financial institutions. In the U.S., TD launched its Next Generation Digital platform, including a redesigned app for iOS and Android devices with more than 20 new features.
In 2016, TD became the first Canadian company to join both the RE100, a global initiative to help increase renewable energy demand, and CDP’s program to reduce carbon in the supply chain. Alongside a group of Canadian industry leaders, TD joined the Carbon Pricing Leadership Coalition to support the Canadian government’s commitment to reduce carbon emissions. In 2016, TD was the highest scoring Canadian bank on the CDP Climate Disclosure Leadership Index and the only Canadian bank listed on the Dow Jones Sustainability World Index.
1 The Toronto-Dominion Bank (the "Bank" or "TD") prepares its Consolidated Financial Statements in accordance with International Financial Reporting Standards (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 to arrive at "adjusted" results to assess each of its businesses and to measure overall Bank performance. To arrive at adjusted results, the Bank removes "items of note", net of income taxes, from reported results. Refer to the "Financial Results Overview" in the accompanying 2016 Management's Discussion and Analysis (MD&A) for further explanation, a list of the items of note, and a reconciliation of non-GAAP financial measures.
2 TSR is calculated based on share price movements and dividends reinvested over the trailing one, three, five, and ten year periods ending October 31, 2016. Source: Bloomberg. Canadian peers include Royal Bank of Canada, Scotiabank, Bank of Montreal and Canadian Imperial Bank of Commerce.
3 Scottrade Bank is a federal savings bank wholly-owned by Scottrade Financial Services Inc.
4 TDCT achieved leadership in banking excellence in the following channels in the 2016 Ipsos Best Banking Awards: Automated Teller Machine, Online and Mobile. Leadership is defined as either a statistically significant lead over the other Big 5 Canadian Banks (at a 95% confidence interval) or a statistically equal tie with one or more of the Big 5 Canadian Banks. Ipsos 2016 Best Banking Awards are based on ongoing quarterly Customer Service Index (CSI) survey results. Sample size for the total 2016 CSI program year ended with the August 2016 survey wave was 47,305 completed surveys yielding 67,678 financial institution ratings nationally.
5 Market share ranking is based on the most current data available from public financial disclosures for average credit card balances at June 2016, the Office of the Superintendent of Financial Institutions Canada (OSFI) for personal deposits, and the Canadian Bankers Association for business deposits and loans as of March 2016.
6 Ranked #1 in Equity Options Block Trading and #2 in Equity Block Trading (block trades by value on all Canadian exchanges. Source: IRESS); #1 in Equity Underwriting (Source: Bloomberg); #2 in Government and Corporate debt underwriting (excludes self-led domestic bank deals and credit card deals. Bonus credit to lead. Source: Bloomberg); #3 in Canadian Syndicated Loans (deal volume awarded proportionately to the Lead Arrangers. Based on a rolling twelve-month basis. Source: Bloomberg). All rankings are as of calendar year-to-date September 2016 unless otherwise noted. Rankings reflect TD Securities' position among Canadian peers.
7 The Thomson Reuters Analyst Awards are recognized as the gold standard in objective measurement of sell-side analyst performance. The awards recognize the world's top individual sell-side analysts and sell-side firms. They measure the performance of sell-side analysts based on the returns of their buy/sell recommendations relative to industry benchmarks, and the accuracy of their earnings estimates in 16 regions across the globe. TD Securities' ranking is based on receiving the highest number of equity research awards in 2016.
8 TD Bank, N.A. received the highest numerical score among Retail Banks in Florida in the J.D. Power 2016 Retail Banking Satisfaction Study, based on 76,233 responses from 10 banks measuring opinions of consumers with their primary banking provider, surveyed April 2015-February 2016. Your experiences may vary. Visit www.jdpower.com.
9 Ranks based on data available from OSFI, Insurers, Insurance Bureau of Canada, and Provincial Regulators, as at December 31, 2015. Peer group top 10: Intact, Desjardins, Aviva, RSA, Wawanesa, The Co-Operators, Allstate, Economical, and Travelers.
10 Balance protection insurance on credit cards per Canadian Bankers Association (CBA), April 2016.
11 Credit protection insurance among Big 5 banks based on credit penetration of Mortgage Life Insurance, using data from CBA, April 2016.
12 Comscore reporting current as of August 30, 2016. TD had the highest number of mobile unique visitors accessing financial services over the past three months, over the full year to-date, and over the third quarter of 2016.