TD Bank 2003 Annual Report Download - page 50

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TD BANK FINANCIAL GROUP ANNUAL REPORT 2003 • Management’s Discussion and Analysis48
TABLE 7Non-interest expenses and efficiency ratio
(millions of dollars) 2003 2002 2001 2000 1999
Salaries and employee benefits
Salaries $ 2,304 $ 2,273 $ 2,225 $ 2,032 $1,475
Incentive compensation 986 875 1,150 1,048 785
Pension and other employee benefits 468 418 333 319 223
Salaries and employee benefits total 3,758 3,566 3,708 3,399 2,483
Occupancy
Rent 361 330 323 266 209
Depreciation 143 148 149 104 80
Other 152 127 120 128 84
Occupancy total 656 605 592 498 373
Equipment
Rent 185 170 159 118 88
Depreciation 175 164 169 156 121
Other 290 327 328 287 186
Equipment total 650 661 656 561 395
General
Amortization of intangible assets 772 998 1,292 1,203 2
Amortization of goodwill ––198 142 51
Goodwill impairment 624 ––––
Restructuring costs 92 –239 475 –
Marketing and business development 348 388 410 434 261
Brokerage related fees 229 224 229 260 221
Professional and advisory services 372 366 322 284 172
Communications 208 225 205 202 155
Capital and business taxes 133 107 106 82 86
Postage 91 96 115 110 82
Travel and relocation 58 68 67 65 46
Other 373 448 515 412 234
General total 3,300 2,920 3,698 3,669 1,310
Total expenses $ 8,364 $ 7,752 $ 8,654 $ 8,127 $4,561
Percentage increase (decrease) 7.9% (10.4)% 6.5% 78.2% 15.3%
Efficiency ratio
Net interest income $ 5,616 $ 5,300 $ 4,391 $ 3,605 $2,981
Other income 4,424 4,929 6,447 6,400 5,932
Total revenue $10,040 $10,229 $10,838 $10,005 $8,913
Efficiency ratio – reported basis 83.3% 75.8% 79.8% 81.2% 51.2%
Efficiency ratio – operating cash basis1,2 73.9 64.9 64.5 61.8 62.6
1Expenses used to compute the efficiency ratio on an operating cash
basis exclude non-cash goodwill/intangible amortization, and restructur-
ing costs related to acquisitions and significant business restructuring
initiatives (Wholesale Banking in 2001, TD Waterhouse Group, Inc.
in 2001, the acquisition of Newcrest in 2001 and the acquisition
of Canada Trust in 2000).
2Revenues used to compute the efficiency ratio on an operating cash basis
are on a taxable equivalent basis and exclude 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 of nil in 2003 (2002 –
$40 million; 2001 –$350 million; 2000 –nil; 1999 –$61 million).