TD Bank 2001 Annual Report Download - page 34

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HOW WE PERFORMED IN 2001
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATING PERFORMANCE
TABLE 1 Consolidated statement of income (TEB)
(millions of dollars) 2001 2000 1999
Net interest income (TEB) $ 4,636 $ 3,804 $ 3,173
Provision for credit losses1620 480 275
Net interest income after credit loss provision (TEB) 4,016 3,324 2,898
Other income16,097 6,400 4,092
Net interest and other income (TEB) 10,113 9,724 6,990
Non-interest expenses excluding non-cash goodwill/intangible
amortization and restructuring costs 6,925 6,307 4,508
Income before provision for income taxes (TEB) 3,188 3,417 2,482
Provision for income taxes (TEB) 981 1,322 1,005
Income before non-controlling interest 2,207 2,095 1,477
Non-controlling interest 49 77 5
Net income – operating cash basis2$ 2,158 $ 2,018 $ 1,472
Gains on sale of investment real estate, net of tax 275 ––
Increase in general provision, net of tax (208) ––
Restructuring costs, net of tax (138) (271) –
Income tax expense from income tax rate changes3(75) ––
Special gains, net of tax ––1,553
Net income – cash basis $ 2,012 $ 1,747 $ 3,025
Non-cash goodwill/intangible amortization, net of tax 629 722 44
Reported net income $ 1,383 $ 1,025 $ 2,981
See Consolidated statement of income page 43
TABLE 1 Page 32 Consolidated statement of income (TEB)
TABLE 2 Page 33 Operating cash basis measurements
TABLE 3 Page 33 Analysis of change in net interest income (TEB)
TABLE 4 Page 33 Net interest rate margin (TEB)
TABLE 5 Page 34 Average earning balances and interest rates (TEB)
TABLE 6 Page 34 Other income
TABLE 7 Page 35 Trading related income (TEB)
TABLE 8 Page 35 Non-interest expenses and efficiency ratio
TABLE 9 Page 36 Taxes
TABLE 10 Page 36 Loans to small and mid-sized business customers
TABLE 11 Page 37 Loans and customers’ liability under acceptances
at year end
TABLE 12 Page 38 Impaired loans less allowance for credit losses
at year end
TABLE 13 Page 38 Impact on net interest income due to impaired
loans
TABLE 14 Page 39 Provision for credit losses
TABLE 15 Page 40 Current replacement cost of derivatives
TABLE 16 Page 40 Assets under administration and assets under
management
Supplementary information
1Excludes special increases in the general provision of $300 million
pre-tax in 2001 and special real estate gains of $350 million pre-tax
in 2001.
2Operating cash basis results exclude restructuring costs related to acqui-
sitions and significant business restructuring initiatives (TD Securities in
2001, TD Waterhouse Group, Inc. in 2001, the acquisition of Newcrest
in 2001 and the acquisition of Canada Trust in 2000), the effects of
future tax rate reductions on future tax balances in 2001, the net effect
of real estate gains and general provision increases in 2001 and the gain
on the sale of TD Waterhouse Group, Inc. and Knight/Trimark in 1999.
Operating results are presented on this basis in order to provide a mean-
ingful year-over-year comparison. Cash basis results exclude the after-tax
impact of goodwill and other purchase-related intangible amortization. As
explained, operating cash basis results are different from reported results
determined in accordance with generally accepted accounting principles
(GAAP). The term “operating cash basis results”is not a defined term
under GAAP, and therefore may not be comparable to similar terms used
by other issuers.
3Tax rate reductions cause a writedown of future tax assets.