TD Bank 2002 Annual Report Download - page 6

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TO OUR SHAREHOLDERS
We are also working to capitalize on the many growth
opportunities in our existing product lines and markets, and are
improving our capacity to cross-sell our services to both existing
and prospective customers, across all of our businesses.
Given our leading TD Canada Trust position in the Canadian
market, we expect to augment the inherent growth in our retail
business by continuing to benefit from growth in those areas
where we are below our market share. For instance, we see
potential in small business and commercial banking, and in
life, property and casualty insurance through TD Insurance and
TD Meloche Monnex.
Overall, our commitment is to ensure our customers continue
to have the most comfortable banking experience possible, and
we believe we are in the best position to provide just that – we
did not undertake the TD-CT integration to build a bigger bank,
but rather to build a better one.
Wholesale Banking
Our wholesale banking operation is positioned to benefit from its
recent strategic shift. We have separated our corporate banking
operations into two separate units – one for our ongoing
operations with core clients and one for businesses that we want
to exit over time. This has isolated our core business from the
impact of unprofitable relationships.
We are also in the process of providing TD Securities with a
more appropriate capital base and affirmative steps are being
taken to change its risk profile, to bring it to a level that is more
consistent with our overall, retail-focused strategy.
We believe that this strategy will restore our position as a
leading Canadian wholesale banking franchise, both in corporate
lending and investment banking, with a highly diversified
portfolio across industries and companies.
Outside of Canada, we will lend on a much more restricted
and limited basis, and expand on our strong capital markets
capabilities. Our selective focus on clients with whom we have
strong relationships will strengthen our wholesale banking
operation in 2003 and beyond.
Wealth Management
Overall, we expect TD Waterhouse to be more profitable in 2003
as we realize the benefits of the steps we have taken in 2002.
Last year, we integrated our Canadian wealth management
retail operations – Discount Brokerage, Investment Advice and
Financial Planning – under the TD Waterhouse brand, providing
our customers with a range of products and superior advice and
guidance under one strong and reputable brand.
We were profitable in 2002. We ended the year with more
professional advisors and implemented a new Uniform Referral
Process that enables smooth handoffs between our businesses.
This supports our efforts to increase our cross-selling abilities
to our 10 million retail customers –which is a core part of our
wealth management strategy.
In the United States, we are also profitable. Last year, we
significantly reduced the cost base and breakeven point of our
TD Waterhouse USA operation. We also continued to build a
strong and differentiated brand, and stepped up our efforts of
optimizing each and every customer relationship.
Looking ahead, we will continue to make TD Waterhouse in
the U.S. more competitive on costs and technology while
developing a long-term growth strategy that integrates with our
developing retail vision for the U.S. market.
Globally, we are focused on finding ways to improve and
leverage our scale, and on reducing costs, improving efficiency
and increasing productivity. Specific initiatives include our recent
relationship with The Royal Bank of Scotland Group and its
NatWest Personal Finance Management Limited subsidiary, the
holding company for NatWest Stockbrokers.
In Memoriam
Allen Thomas Lambert, O.C., LL.D. (1911 – 2002) Few have had such a profound influence on the financial services sector
in Canada as Allen Lambert. He had an extraordinary career with the Bank, which spanned over 50 years. He joined the Bank
in 1927 and rose steadily through the ranks to become President in 1960 –effectively the Chief Executive Officer, although this
title was not formally adopted until 1972. In 1961, Allen added the role of Chairman. He became Chairman and Chief
Executive Officer in 1972. He served the Bank as its most senior executive for seventeen years, before retiring as CEO in 1977,
and a year later as Chairman in 1978.
Under his progressive leadership, he led the Bank through many significant changes, including the merger of The Dominion
Bank with the Bank of Toronto in 1955. He also oversaw the Bank in adopting a culture of change and innovation – which
included the introduction of its Green Machine automated banking system. Among his most visible legacies was the
construction of world-renowned architect Mies van der Rohe’s TD Centre in the early 1960’s, an important contribution to the
regeneration of Toronto’s downtown city core.
Allen remained as an advisor to TDBFG’s management following his retirement, and was also extremely active outside of the
Bank. He served as President of the International Monetary Conference and as Chairman of the much-lauded Royal Commission
on Financial Management and Accountability in the Federal Public Service, which became more fittingly known as the Lambert
Commission. Additionally, he continued to serve within the Canadian business community, as a contributing member to the
Board of Directors of several significant Canadian companies.
Allen Lambert was an Officer of the Order of Canada, received numerous honourary degrees from several Canadian
institutions and made significant contributions to many charitable causes.
He passed away peacefully and unexpectedly at home in Toronto on October 25, 2002 at the age of 90.