TD Bank 2010 Annual Report Download - page 10

TD BANK GROUP ANNUAL REPORT 2010 MANAGEMENT’S DISCUSSION AND ANALYSIS8
This Management’s Discussion and Analysis (MD&A) is presented to enable readers to assess material
changes in the financial condition and operating results of TD Bank Group (the Bank) for the year ended
October 31, 2010, compared with the corresponding periods in the prior years. This MD&A should be read
in conjunction with our Consolidated Financial Statements and related Notes for the year ended October 31,
2010. This MD&A is dated December 1, 2010. Unless otherwise indicated, all amounts are expressed in
Canadian dollars and have been primarily derived from the Bank’s annual Consolidated Financial Statements
prepared in accordance with Canadian generally accepted accounting principles (GAAP). Note that certain
comparative amounts have been reclassified to conform to the presentation adopted in the current year.
FINANCIAL RESULTS OVERVIEW
13 Net Income
14 Revenue
16 Expenses
17 Taxes
18 Quarterly Financial Information
BUSINESS SEGMENT ANALYSIS
20 Business Focus
23 Canadian Personal and Commercial Banking
26 Wealth Management
30 U.S. Personal and Commercial Banking
33 Wholesale Banking
35 Corporate
2009 FINANCIAL RESULTS OVERVIEW
36 Summary of 2009 Performance
37 2009 Financial Performance by Business Line
GROUP FINANCIAL CONDITION
39 Balance Sheet Review
40 Credit Portfolio Quality
50 Capital Position
53 Off-Balance Sheet Arrangements
55 Related-Party Transactions
56 Financial Instruments
RISK FACTORS AND MANAGEMENT
56 Risk Factors that May Affect Future Results
58 Managing Risk
ACCOUNTING STANDARDS AND POLICIES
73 Critical Accounting Estimates
76 Future Accounting and Reporting Changes
83 Controls and Procedures
Management’s Discussion and Analysis
CAUTION REGARDING FORWARD-LOOKING STATEMENTS
From time to time, the Bank makes written and/or oral forward-looking statements, including in this document, in other filings with Canadian regulators or the U.S. Securities and
Exchange Commission, and in other communications. In addition, representatives of the Bank may make forward-looking statements orally to analysts, investors, the media and
others. All such statements are made pursuant to the “safe harbour” provisions of, and intended to be forward-looking statements under, applicable Canadian and U.S. securities
legislation, including the U.S. Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements made in this document, the
Bank’s 2010 Management’s Discussion and Analysis (“MD&A”) under the headings “Econcomic Summary and Outlook” and, for each business segment, “Business Outlook and Focus
for 2011” and in other statements regarding the Bank’s objectives and priorities for 2011 and beyond and strategies to achieve them, and the Bank’s anticipated financial performance.
Forward-looking statements are typically identified by words such as “will”, “should”, “believe”, “expect”, “anticipate”, “intend”, “estimate”, “plan”, “may” and “could”.
By their very nature, these statements require the Bank to make assumptions and are subject to inherent risks and uncertainties, general and specific. Especially in light of the
uncertainty related to the financial, economic and regulatory environments, such risks and uncertainties – many of which are beyond the Bank’s control and the effects of which can
be difficult to predict – may cause actual results to differ materially from the expectations expressed in the forward-looking statements. Risk factors that could cause such differences
include: credit, market (including equity, commodity, foreign exchange and interest rate), liquidity, operational, reputational, insurance, strategic, regulatory, legal, environmental,
and other risks, all of which are discussed in the 2010 MD&A. Additional risk factors include the impact of recent U.S. legislative developments, as discussed under “Significant Events
in 2010” in the “How we Performed” section of the 2010 MD&A; changes to and new interpretations of capital and liquidity guidelines and reporting instructions; increased funding
costs for credit due to market illiquidity and competition for funding; and the failure of third parties to comply with their obligations to the Bank or its affiliates relating to the care
and control of information. We caution that the preceding list is not exhaustive of all possible risk factors and other factors could also adversely affect the Bank’s results. For more
detailed information, please see the “Risk Factors and Management” section of the 2010 MD&A. All such factors should be considered carefully, as well as other uncertainties and
potential events, and the inherent uncertainty of forward-looking statements, when making decisions with respect to the Bank and we caution readers not to place undue reliance on
the Bank’s forward-looking statements.
Material economic assumptions underlying the forward-looking statements contained in this document are set out in the 2010 MD&A under the headings “Economic Summary
and Outlook” and, for each business segment, “Business Outlook and Focus for 2011”, as updated in subsequently filed quarterly Reports to Shareholders.
Any forward-looking statements contained in this document represent the views of management only as of the date hereof and are presented for the purpose of assisting the
Bank’s shareholders and analysts in understanding the Bank’s financial position, objectives and priorities and anticipated financial performance as at and for the periods ended on the
dates presented, and may not be appropriate for other purposes. The Bank does not undertake to update any forward-looking statements, whether written or oral, that may be made
from time to time by or on its behalf, except as required under applicable securities legislation.
Additional information relating to the Bank, including the Bank’s Annual Information Form, is available on the Bank’s website at http://www.td.com, on SEDAR at http://www.sedar.com,
and on the U.S. Securities and Exchange Commission’s website at http://www.sec.gov (EDGAR filers section).