TD Bank 2002 Annual Report Download - page 39

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Management’s Discussion and Analysis of Operating Performance 37
HOW WE PERFORMED IN 2002
TABLE 6Trading related income (TEB)1
(millions of dollars) 2002 2001 2000
Net interest income $ 824 $ 219 $ (287)
Other income 529 1,318 1,225
Total trading related income (TEB) $ 1,353 $ 1,537 $ 938
By business
Interest rate and credit portfolios $ 746 $ 780 $ 383
Foreign exchange portfolios 217 247 200
Equity and other portfolios 390 510 355
Total trading related income (TEB) $ 1,353 $ 1,537 $ 938
1Trading related income includes both trading income reported in
other income and net interest income derived from trading instruments.
TABLE 7Non-interest expenses and efficiency ratio1
(millions of dollars) 2002 2001 2000 1999 1998
Salaries and employee benefits
Salaries $ 2,273 $ 2,225 $ 2,032 $ 1,475 $ 1,362
Incentive compensation 875 1,150 1,048 785 630
Pension and other employee benefits 418 333 319 223 175
Salaries and employee benefits total 3,566 3,708 3,399 2,483 2,167
Occupancy
Rent 330 323 266 209 196
Depreciation 148 149 104 80 73
Other 127 120 128 84 75
Occupancy total 605 592 498 373 344
Equipment
Rent 170 159 118 88 78
Depreciation 164 169 156 121 108
Other 327 328 287 186 149
Equipment total 661 656 561 395 335
General
Marketing and business development 388 410 434 261 213
Brokerage related fees 224 229 260 221 162
Professional and advisory services 366 322 284 172 140
Communications 225 205 202 155 142
Capital and business taxes 107 106 82 86 73
Postage 96 115 110 82 65
Travel and relocation 68 67 65 46 45
Other – excluding non-cash goodwill/intangible
amortization and restructuring costs 448 515 412 234 202
General total 1,922 1,969 1,849 1,257 1,042
Total expenses excluding non-cash goodwill/intangible
amortization and restructuring costs $ 6,754 $ 6,925 $ 6,307 $ 4,508 $ 3,888
Percentage increase (decrease) (2.5)% 9.8% 39.9% 15.9% 16.9%
Efficiency ratio
Net interest income (TEB) $ 5,522 $ 4,636 $ 3,804 $ 3,173 $ 3,140
Other income 4,929 6,447 6,400 4,092 3,197
Total revenue (TEB) 10,451 11,083 10,204 7,265 6,337
Deduct one-time gains 40 350 –61 246
Adjusted revenue (TEB) $ 10,411 $ 10,733 $ 10,204 $ 7,204 $ 6,091
Efficiency ratio – excluding non-cash goodwill/
intangible amortization, restructuring
costs and one-time gains264.9% 64.5% 61.8% 62.6% 63.8%
Efficiency ratio – reported basis 74.2% 78.1% 79.6% 50.1% 62.4%
1Expenses used to compute the efficiency ratio exclude non-cash
goodwill/intangible amortization, 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 mutual fund record keeping and
custody business in 2002, real estate gains in 2001, the gain on the
sale of TD Waterhouse Group, Inc. and Knight/Trimark in 1999 and
other one-time gains.