TD Bank 2001 Annual Report Download - page 37

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35
HOW WE PERFORMED IN 2001
MANAGEMENT’S DISCUSSION AND ANALYSIS OF OPERATING PERFORMANCE
TABLE 8 Non-interest expenses and efficiency ratio1
(millions of dollars) 2001 2000 1999 1998 1997
Salaries and employee benefits
Salaries $ 2,225 $ 2,032 $ 1,475 $ 1,362 $ 1,208
Incentive compensation 1,150 1,048 785 630 478
Pension and other employee benefits 333 319 223 175 140
Salaries and employee benefits total 3,708 3,399 2,483 2,167 1,826
Occupancy
Rent 323 266 209 196 171
Depreciation 149 104 80 73 72
Other 120 128 84 75 70
Occupancy total 592 498 373 344 313
Equipment
Rent 159 118 88 78 58
Depreciation 169 156 121 108 86
Other 328 287 186 149 126
Equipment total 656 561 395 335 270
General
Marketing and business development 410 434 261 213 188
Brokerage related fees 229 260 221 162 100
Professional and advisory services 322 284 172 140 134
Communications 205 202 155 142 121
Capital and business taxes 106 82 86 73 110
Postage 115 110 82 65 59
Travel and relocation 67 65 46 45 38
Deposit insurance premiums 33 28 41 63 64
Other – excluding non-cash goodwill/intangible
amortization and restructuring costs 482 384 193 139 103
General total 1,969 1,849 1,257 1,042 917
Total expenses excluding non-cash goodwill/intangible
amortization and restructuring costs $ 6,925 $ 6,307 $ 4,508 $ 3,888 $ 3,326
Percentage increase 9.8% 39.9% 15.9% 16.9% 25.3%
Efficiency ratio
Net interest income (TEB) $ 4,636 $ 3,804 $ 3,173 $ 3,140 $ 2,983
Other income 6,447 6,400 4,092 3,197 2,650
Total revenue (TEB) 11,083 10,204 7,265 6,337 5,633
Deduct one-time gains 350 –61 246 200
Adjusted revenue (TEB) $ 10,733 $ 10,204 $ 7,204 $ 6,091 $ 5,433
Efficiency ratio – excluding non-cash goodwill/
intangible amortization, restructuring
costs and one-time gains264.5% 61.8% 62.6% 63.8% 61.2%
TABLE 7 Trading related income (TEB)1
(millions of dollars) 2001 2000 1999
Net interest income $ 219 $ (287) $ 30
Other income 1,318 1,225 679
Total trading related income (TEB) $ 1,537 $ 938 $ 709
By business
Interest rate and credit portfolios $ 780 $ 383 $ 417
Foreign exchange portfolios 247 200 145
Equity and other portfolios 510 355 147
Total trading related income (TEB) $ 1,537 $ 938 $ 709
1Trading related income includes both trading income reported in
other income and net interest income derived from trading instruments.
1Expenses used to compute the efficiency ratio exclude non-cash
goodwill/intangible amortization from business combinations, and
restructuring costs related to acquisitions 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).
2Excludes special gains on the sale of TD Waterhouse Group, Inc.
and Knight/Trimark in 1999, real estate gains in 2001 and other
one-time gains.