TD Bank 2010 Annual Report Download - page 31

Download and view the complete annual report

Please find page 31 of the 2010 TD Bank annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 152

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152

TD BANK GROUP ANNUAL REPORT 2010 MANAGEMENT’S DISCUSSION AND ANALYSIS 29
(millions of U.S. dollars) For the years ended
Sept. 30, 2010 Sept. 30, 2009
Revenues
Net interest revenue $ 422 $ 347
Fee-based and other revenue 2,139 2,061
Total revenues 2,561 2,408
Operating expenses
Employee compensation and benefits 622 511
Other 974 795
Total operating expenses 1,596 1,306
Other expense 53 42
Pre-tax income 912 1,060
Provision for income taxes 320 416
Net income1 $ 592 $ 644
Earnings per share – basic $ 1.01 $ 1.11
Earning per share – diluted $ 1.00 $ 1.10
1
The Bank’s equity share of net income of TD Ameritrade is subject to adjustments
relating to amortization of intangibles.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
TABLE 17
KEY PRODUCT GROUPS
Global Online Investing
•
TD Waterhouse Discount Brokerage offers a comprehensive product
and service offering to self-directed retail investors and to invest-
ment counsellors and corporate clients through its Institutional
Services business. TD Waterhouse is the largest discount brokerage
in Canada by assets under administration and trade volume, and
leads the industry in profitability, price, and service. In the U.K.
and Europe, TD Waterhouse International provides multi-currency
and multi-exchange online brokerage services for retail investors,
and custody and clearing services for corporate clients. This business
has a leading market share, is ranked number one in trades per
day in the U.K., and has recently expanded into Ireland and other
areas of Europe.
Canadian Advice-based Business
•
Integrated and closely aligned to Canadian Personal and Commercial
Banking, TD’s Canadian advice-based businesses, TD Waterhouse
Financial Planning, TD Waterhouse Private Investment Advice, and
TD Waterhouse Private Investment Counsel represent a critical
mass organization that meets the pre-retirement and retirement
needs of clients. Each advice-based business is focused on a
discrete segment and offers a specific value proposition which
aligns with clients’ asset levels and the complexity of their needs.
Together they provide investment solutions and advice to manage
clients’ asset accumulation, and the preservation and transition
of client wealth.
North American Private Client Group
•
Private Client Group provides comprehensive solutions to the
complex
needs of high net worth clients. Working in close align-
ment with the Canadian and U.S. Personal and Commercial Bank-
ing segments,
Private Client Group provides banking, trust, and
discretionary
investment management services to high net worth
clients. To meet
the needs of mass affluent clients in the U.S., a
strategic relationship focused primarily on referrals between the U.S.
Personal and Commercial Banking segment and TD Ameritrade has
been implemented.
North American Asset Management
•
TD Asset Management (TDAM) is a leading North American invest-
ment
manager comprised of retail and institutional capabilities. In
Canada,
TD Mutual Funds provides one of the most broadly diversi-
fied ranges
of mutual funds and professionally managed portfo-
lios. TDAM’s
institutional investment business has leading market
share in Canada,
and is steadily expanding in the U.S. Both units
work in close part
nership with Wealth Management businesses to
align origination,
manufacturing, wholesaling and distribution.
BUSINESS OUTLOOK AND FOCUS FOR 2011
We remain cautiously optimistic as we move into 2011. Slower
growth in the U.S. economy may continue to negatively impact
the equity markets and the low rate interest rate environ-
ment
continues to put pressure on margins. For the longer
term, our
prospects for growth remain positive. Our key priori-
ties for 2011
are as follows:
• Continue to deepen functionality in the online channel by
introducing new client solutions by leveraging capabilities
from our recent international acquisitions.
•
Continue to build comprehensive solutions in our advice-
based
businesses, via planning tools and to grow market
share by focusing on opportunities in the retirement
segment.
• Continue to deepen our focus on growing our business via
expanding our product suite and working closely with our
retail partners in the Canadian and U.S. Personal and Commer-
cial
Banking businesses.
• Leverage our premier institutional asset management
capabilities as we compete for new mandates.
• Continue to enhance our technology and operations
capabilities to drive further efficiencies across the Wealth
Management platform and to provide best-in-class client
service levels.