TD Bank 2005 Annual Report Download - page 10

TD BANK FINANCIAL GROUP ANNUAL REPORT 2005 To Our Shareholders
6
AT A GLANCE OVERVIEW
•An historic year for the Bank, 150 years of service
to many generations.
•Adjusted earnings per share growth of 10% (before
amortization of intangibles and items of note).
•Five key areas of differentiation.
•Adedicated, customer-focused workforce, driving
shareholder value.
From its roots in agriculture, the Bank grew through the
amalgamation of The Bank of Toronto and The Dominion Bank
in 1955 and later established itself as a retail banking leader
through the integration of TD Bank and Canada Trust in 2000.
By the end of fiscal 2005, TDBFG stood as the 10th largest
bank in North America, as measured by market capitalization.
That’squite a journey for a company that started out with a
single branch serving grain millers and merchants.
Our anniversary has provided us with a natural opportunity
to look back on where we’ve been and to look forward to
wherewe aregoing. This past year,we’ve had a tremendous
amount of success as well as facing some distinct challenges,
but just as the custodians of the bank before us, we focused
on delivering solid financial results, and making strategic
decisions that will build for the future.
Though financial figures provide only part of the story this
year, I am extremely pleased that TD delivered strong results
for the year including:
•Adjusted net income of $2.861 billion (before the amortiza-
tion of intangibles and items of note),or $2.229 billion on a
reported basis;
•An increase in adjusted earnings (before amortization of
intangibles and items of note) of 15%, compared with 2004;
•Atotal shareholder return of 17% this year, including a
16.7% dividend increase.
In any large and complex organization, therearealways
challenges, and in 2005 TD was not immune. During the year
we announced an increase in our reserve for Enron litigation
which we felt was the prudent thing to do. We also made
the difficult business decision to exit our global structured
products business in Wholesale Banking. While the short-term
economic cost to the Bank is regrettable, I am pleased that
we have taken the steps we have and that we can continue
to focus on growing our businesses for the future to deliver
long-term shareholder value.
BUILDING A SOLID FOUNDATION
FOR GENERATIONS TO COME
The banking industry has changed dramatically over the years,
and we have had the honour of serving many generations of
customers. And while we areextremely proud of our roots,
we cannot let history alone define who we are and what we
do. We are committed to being the better bank. Why the
“better bank?” Because working to be the better bank means
we arecontinually improving on our past successes, learning
from our challenges, and working to identify and leverage
new opportunities.
We’re keenly aware that any organization wishing to com-
pete in the market must focus on its customers and must look
to drive long-term shareholder value. So in that respect, we
are no different. What does set us apart, however, is not only
what we do, but how we do it. That is why we have adopted
aset of guiding principles and a leadership profile that speaks
to what we want to accomplish as an organization, and how
we want to accomplish it. We want to be transparent about
what we expect from our leaders, so that customers, share-
holders, our community partners and our employees know
what they can expect from us. We want to be open and up
front about the good news and the bad. We want to actively
TO OUR SHAREHOLDERS
President and CEO’s Message
This was an historic year for TD Bank Financial Group
as we celebrated our 150th anniversary.