TD Bank 2001 Annual Report Download - page 24

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22
HOW WE PERFORMED IN 2001
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATING PERFORMANCE
TD Securities
TD Securities had its most profitable year ever. We continued our
record of consistent growth in revenues and earnings, and made
important gains in market share in products such as institutional
equities, equity and debt underwritings, and foreign exchange.
We achieved these results despite increased provision for
credit losses and a general slowdown in capital markets and
credit activity.
(millions of dollars) 2001 2000 1999
Net interest income (TEB) $ 3,951 $ 3,265 $ 2,198
Other income 1,688 1,438 835
Total revenue 5,639 4,703 3,033
Provision for credit losses 380 332 154
Non-interest expenses excluding non-cash goodwill/intangible amortization 3,467 2,944 2,005
Net income before taxes 1,792 1,427 874
Income taxes (TEB) 702 602 375
Net income – operating cash basis $ 1,090 $ 825 $ 499
Selected volumes and ratios
Average loans and customers’liability under
acceptances (billions of dollars) $91 $81 $61
Average deposits (billions of dollars) 97 86 54
Economic profit 369 213
Full-time equivalent staff at October 31 27,019 24,879 13,978
Operating cash basis return on economic capital129% 24% 21%
Operating cash basis efficiency ratio160% 61% 66%
1Excludes Canada Trust acquisition funding costs.
TD Canada Trust
TD Canada Trust had strong growth in operating cash basis
earnings while successfully completing the integration of virtually
all elements of TD and Canada Trust. Revenue grew by 10% on a
pro forma basis (after adjusting for the acquisition of Canada
Trust at the beginning of fiscal 2000) because of strong growth
in loans, chequing and savings accounts, as well as a 13 basis
point improvement in the net interest margin to 3.38%.
Expenses increased this year mainly due to the cost of
converting the retail branches to a common brand and systems
platform. This included preparation costs, as well as the cost
of increased staffing, training, customer communication and
re-branding. However, we remain on track to meet the expense
targets in the integration plan.
(millions of dollars) 2001 2000 1999
Net interest income (TEB) $ 886 $ 428 $ 806
Other income 2,251 2,295 1,595
Total revenue 3,137 2,723 2,401
Provision for credit losses 327 210 76
Non-interest expenses excluding non-cash goodwill/intangible amortization 1,368 1,189 1,028
Net income before taxes 1,442 1,324 1,297
Income taxes (TEB) 528 546 550
Net income – operating cash basis $ 914 $ 778 $ 747
Selected volumes and ratios
Average loans and customers’ liability under
acceptances (billions of dollars) $29 $28 $30
Economic profit 369 311
Full-time equivalent staff at October 31 2,728 2,500 2,302
Operating cash basis return on economic capital123% 22% 18%
Operating cash basis efficiency ratio144% 44% 44%
1Excludes special securities items in 1999.
How our businesses performed