TD Bank 2001 Annual Report Download - page 12

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10
ABOUT TD BANK FINANCIAL GROUP
TD Securities is the wholesale banking arm of TD Bank
Financial Group. We provide financial products and
services to meet the needs of corporate, government
and institutional clients.
See Segmented financial results page 22
TD Securities is the most profitable wholesale bank in
Canada. We know that our success is linked to our strong
client relationships. That’s why our focus has always been
on providing innovative, integrated financial and strategic
solutions to a wide range of clients in North America and
around the globe.
The completion of our acquisition of Newcrest Capital,
one of Canada’s leading independent investment dealers,
enhanced our ability to deliver outstanding service to our
clients, strengthening our position in institutional equities
and investment banking.
Our clients rely on our ideas, expertise and integrity,
especially during times of market volatility like we’ve
experienced this year. This is reflected in the key role TD
Securities played in many significant transactions in 2001.
We continued our global leadership in media,
telecommunications and technology, advising Moffat
Communications Ltd. in the $1.3 billion acquisition of Moffat
by Shaw Communications, Corus Entertainment Inc. in its
$625 million acquisition of Nelvana Inc., and CGI Group Inc.
in its $100 million acquisition of Star Data Systems Inc.
We built on our strength and expertise in the utilities
industry, acting as financial advisor to EPCOR Utilities Inc. in
its $110 million acquisition of UtiliCorp Networks Canada,
Alberta’s retail electricity business, and to The City of
Mississauga in Hydro Mississauga’s strategic alliance with
Borealis Energy Corporation, a division of OMERS. Both the
EPCOR and the Hydro Mississauga deals were the first of
their kind ever done in Canada.
We achieved many other successes for our clients in
2001, including:
•completing a series of landmark financing transactions
for TELUS Corporation with total proceeds of $9.2 billion,
which collectively represent the largest corporate financing
ever completed by a Canadian issuer
•advising British Energy in its $3.2 billion lease transaction
for certain Ontario Power Generation’s nuclear plants
•leading a $650 million structured equity issue for
Triax Capital Holdings Ltd., structured for the retail
investing market
•leading the issue of $554 million exchangeable debentures
in addition to a secondary sale of Abitibi-Consolidated
shares by Quebecor Inc.
•co-leading a $600 million 5.7% bond issue by a real
estate subsidiary of the Ontario Teachers Pension
Plan Board
Strength in diversity
Despite challenging economic conditions, TD Securities
continued to deliver strong earnings and return on equity on
an operating cash basis. Our solid trading performance in
these market conditions are generated mostly from lower risk
activities related to client transactions or market arbitrage
opportunities, and are well-diversified across interest rate,
foreign exchange, credit and equity risks.
Our improved performance in institutional equity trading
and our increase in market share of equity underwriting
reflects the success of our strategic acquisition of Newcrest
Capital. TD Capital, our private equity arm, also provided a
valuable contribution.
The strength in our core businesses was also supported by
good expense control and prudent management of credit risk
in our corporate banking business. At the end of this year, we
restructured to reduce expenses and better position ourselves
for long-term growth.
These results demonstrate the strength of our strategy to
diversify our businesses across product, geographic and
industry sector groups. They also reflect our ability to identify
opportunities that offer sustainable franchise value, position-
ing us well to manage the current weaker market conditions.
TD Securities