TD Bank 2010 Annual Report Download - page 23

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TD BANK GROUP ANNUAL REPORT 2010 MANAGEMENT’S DISCUSSION AND ANALYSIS 21
(millions of Canadian dollars) Canadian Personal U.S. Personal and
and Commercial Wealth Commercial Wholesale
Banking Management Banking1 Banking Corporate Total
2010 2009 2010 2009 2010 2009 2010 2009 2010 2009 2010 2009
Net interest income $ 7,134 $ 6,348 $ 336 $ 270 $ 3,579 $ 3,607 $ 1,815 $ 2,488 $ (1,321) $ (1,387) $ 11,543 $ 11,326
Non-interest income 3,237 3,101 2,121 1,935 1,180 1,117 1,059 733 425 (352) 8,022 6,534
Total revenue 10,371 9,449 2,457 2,205 4,759 4,724 2,874 3,221 (896) (1,739) 19,565 17,860
Provision for (reversal of)
credit losses 1,046 1,155 – – 646 948 25 164 (92) 213 1,625 2,480
Non-interest expenses 4,934 4,725 1,813 1,701 2,910 3,213 1,395 1,417 1,111 1,155 12,163 12,211
Income (loss) before provision
for income taxes 4,391 3,569 644 504 1,203 563 1,454 1,640 (1,915) (3,107) 5,777 3,169
Provision for (recovery of)
income taxes 1,296 1,097 197 159 230 (70) 588 503 (1,049) (1,448) 1,262 241
Non-controlling interests
in subsidiaries,
net of income taxes – – – – – – – – 106 111 106 111
Equity in net income of an
associated company,
net of income taxes – – 194 252 – – – – 41 51 235 303
Net income (loss) – reported 3,095 2,472 641 597 973 633 866 1,137 (931) (1,719) 4,644 3,120
Adjustments for items of note,
net of income taxes
2
Amortization of intangibles – – – – – – – – 467 492 467 492
Decrease (increase) in fair value
of derivatives hedging the
reclassified available-for-sale
debt securities portfolio – – – – – – – – (5) 450 (5) 450
Integration and restructuring charges
relating to U.S. Personal and
Commercial Banking acquisitions – – – – 69 276 – – – – 69 276
Decrease (increase) in fair value
of credit default swaps hedging
the corporate loan book,
net of provision for credit losses – – – – – – – – 4 126 4 126
(Recovery of) income
taxes due to changes in statutory
income tax rates – – – – – – – – (11) – (11) –
Provision (release) of insurance claims – – – – – – – – (17) – (17) –
General allowance increase
(release) in Canadian Personal
and Commercial Banking
and Wholesale Banking – – – – – – – – (44) 178 (44) 178
Settlement of TD Banknorth
shareholder litigation – – – – – – – – – 39 – 39
FDIC special assessment charge – – – – – – – – 35 – 35
Agreement with
Canada Revenue Agency – – – – – – 121 – – – 121 –
Total adjustments for items of note – – – – 69 276 121 – 394 1,320 584 1,596
Net income (loss) – adjusted $ 3,095 $ 2,472 $ 641 $ 597 $ 1,042 $ 909 $ 987 $ 1,137 $ (537) $ (399) $ 5,228 $ 4,716
(billions of Canadian dollars)
Average invested capital $ 9.3 $ 8.8 $ 4.4 $ 4.7 $ 17.9 $ 20.0 $ 3.2 $ 3.8 $ 6.8 $ 2.6 $ 41.6 $ 39.9
Risk-weighted assets 68 64 8 8 88 80 32 34 3 4 200 190
RESULTS BY SEGMENT
TABLE 13
1 As explained in the “How the Banks Reports” section and Note 1 to the 2010
Consolidated Financial Statements, effective the second quarter ended April 30,
2009, as a result of the reporting-period alignment of U.S. entities, TD Banknorth
and Commerce are consolidated using the same period as the Bank.
2 For explanations of items of note, see the “Non-GAAP Financial Measures −
Reconciliation of Adjusted to Reported Net Income” table in the “Financial Results”
section of this MD&A.